Federal Reserve Bulletin, 1991-02

VOLUME 77 • NUMBER 2 • FEBRUARY 1991 FEDERAL RESERVE BULLETIN BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C. PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood • Donald L. Kohn • J. Virgil Mattingly, Jr. • Michael J. Prell • Edwin M. Truman The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Section headed by Mendelle T. Berenson, the Graphics Center 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 81 CLEARING AND PAYMENT SYSTEMS: 98 RECORD OF POLICY ACTIONS OF THE THE ROLE OF THE CENTRAL BANK FEDERAL OPEN MARKET COMMITTEE This article develops a model of the pay- At its meeting on November 13, 1990, the ment system, with special reference to the Committee adopted a directive that called essential role of the central bank; discusses for a slight reduction in the degree of presthe implications of the public policy and sure on reserve positions. The directive supervisory roles of the central bank in the also called for giving weight to potential payment system; and examines the role of developments that might require some the central bank as operator of a large- slight further easing during the intermeeting value, interbank payment mechanism. period. Accordingly, slightly greater reserve restraint might be acceptable during the intermeeting period or somewhat lesser reserve restraint would be acceptable de- 92 INDUSTRIAL PRODUCTION pending on progress toward price stability, Industrial production fell 1.7 percent in No- the strength of the business expansion, the vember after a decline of 0.9 percent in behavior of the monetary aggregates, and October. Industrial capacity utilization developments in foreign exchange and dodropped 1.5 percentage points in November mestic financial markets. The reserve conto 80.9 percent, its lowest level since May ditions contemplated by the Committee 1987. were expected to be consistent with growth of both M2 and M3 over the period from September through December at annual rates of about 1 to 2 percent. 95 ANNOUNCEMENTS Change in the discount rate. 105 LEGAL DEVELOPMENTS Reduction in the reserve requirements on Various bank holding company, bank sernonpersonal time deposits and net Eurocurvice corporation, and bank merger orders; rency liabilities. and pending cases. Appointment of new members to the Thrift Institutions Advisory Council. AI FINANCIAL AND BUSINESS STATISTICS Amendment to Regulation H. These tables reflect data available as of Proposal to require depository institutions December 27, 1990. that originate or receive commercial auto- A3 Domestic Financial Statistics mated clearinghouse (ACH) transactions through the Federal Reserve Banks to es- A46 Domestic Nonfinancial Statistics tablish electronic access to the Reserve A55 International Statistics Banks for ACH services; interim amendments to Regulation CC pending adoption A7i GUIDE TO TABULAR PRESENTATION, of a final rule. STATISTICAL RELEASES, AND SPECIAL Changes in Board staff. TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A82 BOARD OF GOVERNORS AND STAFF A88 INDEX TO STATISTICAL TABLES A84 FEDERAL OPEN MARKET COMMITTEE A90 FEDERAL RESERVE BANKS, AND STAFF; ADVISORY COUNCILS BRANCHES, AND OFFICES A86 FEDERAL RESERVE BOARD A9i MAP OF THE FEDERAL RESERVE PUBLICATIONS SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Clearing and Payment Systems: The Role of the Central Bank Bruce J. Summers, Deputy Director, Division of been of secondary importance on the central bank- Reserve Bank Operations and Payment Systems, ing agenda. The payment system has traditionally prepared this article. An earlier version of this been almost exclusively the province of central paper was presented in Washington, D.C., at the bank staff members with operations and automation Central Banking Seminar of the International responsibilities, reflecting the view that the payment Monetary Fund, November 6, 1990. system is essentially a mechanical process. Along these lines, the literature on the payment system has Two themes of the Central Banking Seminar are traditionally been slanted toward analyses of ecodirectly relevant to consideration of payment sys- nomic efficiency, with much of the literature framed tem issues. One is the interdependencies of different in the context of the economics of the firm. The functions normally performed by a central bank. In payment system has now entered the mainstream this regard, I know of no other aspect of the central for central bankers, although, admittedly, the debank's responsibility that requires more cooperation gree of interest varies from country to country. and coordination among the various central banking This paper has three main parts. First, to disciplines than the payment system does. A second provide a common frame of reference, I develop theme of the seminar is the role of the central bank a model of the payment system, with special in dealing with financial crises. Stress on a nation's reference to the essential role of the central bank. payment system is often one of the earliest and most direct manifestations of financial crisis. Indeed, the Payment Systems in Market Economies payment system may be a direct channel through which liquidity and credit problems are transferred The fifth Central Banking Seminar sponsored by the from one participant in the financial system to International Monetary Fund was held as the Fund is another. Such transfers have the potential to create engaged in a major program of assistance to central banks in Eastern Europe. Under the aegis of the IMF systemic liquidity and credit problems that are of Central Banking Department, central bankers from direct concern to the central bank. As a result, several western countries have been helping their councentral banks are increasingly focusing on proper terparts in Eastern Europe to adapt their organizations safeguards to allow payment system participants and operations to functioning in a market economy. The not only to control their risk, but also to prevent the author is leading a team of experts from the Federal contagion of systemic risk. Reserve as part of the IMF technical assistance mission Because it has relevance for a range of central to the National Bank of Poland to help reform that bank disciplines and functions and because it can nation's payment system. become a focus of crisis management, the payment The significance of the payment system as an integral system does indeed deserve a prominent place in part of a nation's financial structure has been highlighted the thinking of central bankers. Yet, until the last by the recent experiences of Eastern European central decade or so, interest in payment system issues has banks. In a market economy, the payment system is the conduit for executing economic choices. Without a properly structured payment system, significant change in the rest of the economy could not proceed. Also, NOTE. The author has benefited from comments made by reform of core central banking functions, ranging from colleagues in the Federal Reserve System and in several monetary control to banking supervision and regulation, other central banks. Special appreciation is due to Jeffrey C. Marquardt and Patrick M. Parkinson for the critical review could not effectively take place. they have provided since the inception of the paper. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

82 Federal Reserve Bulletin • February 1991 Glossary Automated clearinghouse (ACH). A paperless payment or other financial instruments and their derivative products, mechanism, which in the United States is capable of is synchronized so that final payment is received at delivprocessing both credit and debit transfers. In the United ery. The party owed funds thus avoids the risk of late pay- States, the ACH is primarily used for low-value, recurring ment or default on a payment. payments made in connection with consumer transactions. Discount window or Lombard facility. A lending facil- Clearing House Interbank Payments System (CHIPS). ity through which a central bank extends overnight credit, A private credit transfer mechanism for large-value trans- generally for a short term. actions operated by the New York Clearing House. CHIPS Fedwire. An electronic facility operated by the Federal transfers are primarily related to international transactions. Reserve Banks used for (1) credit transfers of reserve In 1990, the daily average number of funds transfers balances among banks across the books of the Federal processed by CHIPS was about 150,000, with a daily aver- Reserve Banks and (2) the transfer among banks of age value of about $890 billion. The approximately 130 book-entry U.S. government and agency securities in a CHIPS participants control their risk through a combinadelivery-versus-payment environment on the books of the tion of bilateral net debit caps and aggregate net debit Federal Reserve Banks. Fedwire funds transfers are conlimits. The CHIPS participants' positions are netted considered final and irrevocable when the recipient of the tinually during the day, and net obligations are settled at transfer is sent an advice of credit by the Federal Reserve. the end of the day through Fedwire transfers among 20 In 1990, the daily average number of funds transfers on settlement participants. To help ensure end-of-day settle- Fedwire was about 255,000, with a daily average value ment in the event that a participant is not able to meet its of about $790 billion; the daily average number of secuobligations, CHIPS has established a formal loss-sharing rities transfers was about 45,000, with a daily average agreement backed by dedicated collateral held on a cusvalue of about $400 billion. todial basis by the Federal Reserve Bank of New York. Payment system. A set of contractual arrangements and Daylight overdrafts. Intraday extensions of credit made operating facilities used to transfer value. Payment by banks (including the central bank) when payment insystems can be distinguished by the degree of finality structions of an account holder are honored even though provided. In some systems, such as Fedwire, the payments there are insufficient balances available in the account to are final-that is, they represent an irrevocable transfer fund the transaction at the time it is made. Daylight overof value. In some other systems, the payments are drafts can become overnight loans if the account balance provisional—that is, they represent a transfer that can cannot be brought back to zero or a positive position by be reversed because of the inability of the party making the close of the banking day. the payment to fund the obligation. Systems that are Delivery versus payment. An arrangement in which the designed to process payments and provide for irreexchange of value in fulfillment of an economic obliga- vocable transfers of value are better suited for large-value tion, involving, for example, securities, foreign exchange, transactions. Second, I discuss the implications of the public role as a source of intraday liquidity to the policy and supervisory roles of the central bank financial system and to the "safety net" atin the payment system. These implications in- tributes associated with access to a large-value clude (1) the need to establish public policies to transfer mechanism. guide the structure of newly developing private clearing and settlement arrangements, in terms of both their integrity and efficiency, and (2) the MODEL OF THE PAYMENT SYSTEM need for supervision of private clearing arrangements, not only domestically, but also for cross- In the simplest terms, the payment system is the border systems, in close cooperation with foreign apparatus through which obligations incurred as central banks. Finally, I examine the role of the a result of economic activity are discharged central bank as operator of a large-value, inter- through transfers of monetary value. The paybank payment mechanism. Special attention is ment system is used primarily for simple day-togiven to the implications of the central bank's day activities, such as retail transactions, that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Clearing and Payment Systems: The Role of the Central Bank 83 Model of the Payment System Economic Activity Trading in goods, services, and financial instruments results in the assumption of an obligation to perform on a contract (to supply or pay for goods, services, or financial instruments). The contract may include specific terms regarding the timing and form of payment. Payment Payment results in the discharge of the obligation with cash or a payment order leading to the transfer of bank balances. Payment orders involve clearing and settlement. Clearing Transfer and recording of the payment instruction. Clearing of gross payments is done transaction by transaction through the banking system. Gross payments or the underlying obligations that give rise to the payments can be netted by specialized clearing organizations. Settlement Actual transfer of value to a deposit account at the payee's bank based on the payment instruction. If gross payments are settled, the value is transferred for each payment instruction. Net payments are also channeled through the banking system for settlement. The timing of settlement can be any of the following: • Immediate. • Same day (end of day). • Next day. may be paid by using a very rudimentary, but the payment order is made, generally not with nonetheless very effective, payment mechanism, cash but with a claim on a bank. such as cash.1 If the obligation is not discharged The payment system is also used to settle immediately (or in "real time," to use technical complex and large-value transactions, such as language) by using cash, then an alternative those arising from trading in financial instrupayment instrument, such as a paper or elec- ments and their derivative products, and to transtronic credit or debit order, must be used. For fer other "commodities." The markets for such payment orders, the process of discharging the instruments are very efficient: In some cases, obligation can be divided conceptually into two assets are held for only a few hours or minutes. parts. The first part is the clearing process in The size of individual transactions may also be which payment information is conveyed from the very large. The average secondary market trade payor to the payee, probably through intermedi- in U.S. government securities, for example, is ary banks. The second part is settlement, in about $9 million. These markets therefore have which the actual transfer of value associated with rapid turnover of high-value transactions. Accordingly, while the model of clearing and settlement described here applies to large-value pay- 1. Although cash payments may appear rudimentary, they ments, the form the payment process takes has actually embody essential features that are sought in more become rather specialized, often involving clearsophisticated electronic payment mechanisms, including large-value funds transfer systems. When an obligation is ing organizations that ensure that payment in discharged by using cash, and assuming there is confidence in good funds is made against delivery for the the government issuing the currency, the payment and final contract in question (delivery-versus-payment settlement are simultaneous and immediate. Apart from the physical restrictions that make cash payments practical only systems) and that increasingly perform a multifor small-value transactions, much may be learned from the lateral netting of such contracts among those principles embodied in the use of this form of payment. See trading in the instruments to reduce the total Goodfriend (1990). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

84 Federal Reserve Bulletin • February 1991 value of individual deliveries and payments that the payor is a good credit risk and agrees to the must be completed.2 bank's credit terms, then the bank will complete In this simple model of the payment process settlement by transferring value even if the payor is (shown in the box), economic activity gives rise short of funds, thus greatly facilitating the payment to an obligation to perform on a contract. In process. In essence, banks provide the liquidity to many cases, the contract may specify the terms allow the payment process to run smoothly. As regarding the form of payment, including both intermediaries, banks aggregate payments due to timing and type of instrument used. As noted, and from each other and often settle payments discharge of an obligation using payment meth- through their own intermediary, that is, through the ods other than cash involves clearing the pay- central bank. ment order, including the transfer, processing, The volume and value of payment transacand recording of payment instructions on the tions in a modern economy with well developed books of the institutions holding the accounts of financial markets have reached the level at the payor and the payee. which central banks are increasingly relied For most unspecialized transactions, each in- upon to provide final settlement among banks. dividual obligation is treated separately for pur- Central bank settlement can be immediate, ocposes of clearing and settlement. When such curring directly upon the processing of a credit obligations are handled and recorded individu- payment order, or same day, involving a delay ally, they are known as gross transactions, which until the end of the banking day.3 As will be receive gross settlement on the books of the explained below, central banks may have a role settlement entity. Specialized transactions, which in providing liquidity support to commercial may include those for various classes of securi- banks by providing central bank credit either ties and equities and their derivative products, intraday or at the end of the day, to ensure rely on traditional payment mechanisms for final completion of payments on schedule. Such lisettlement but increasingly involve the prelimi- quidity support should be consciously managed nary step of netting. Netting is a process in which by the central bank because providing liquidity gross obligations between two (bilateral) or more can easily get out of hand.4 Short-term "day- (multilateral) entities are settled by a single trans- light loans" to banks by the central bank, if not fer of the net amount of funds or goods due from repaid by the end of the day, become overnight each obligor. When properly performed, netting loans. Thus, a direct connection exists between reduces significantly the total value transferred a central bank's decision to provide daylight and the number of payment transactions. Prop- credit and the management of its discount or erly executed, netting can also result in signifi- Lombard facility. cant reduction of risk, as described below. Settlement involves the actual transfer of value THE PUBLIC POLICY AND SUPERVISORY based on payment instructions, whether gross or ROLES OF THE CENTRAL BANK net, on the books of private banking institutions, through the use of bank balances, or on the books of Although the role of central banks in the payment the central bank. Commercial banks serve the prisystem varies from country to country, they have mary role in the settlement step of the process. Banks are equipped to play the role of payment intermediary for two reasons. First, they hold the 3. Some markets and central banks still rely on "next day" accounts of those engaged in economic activity. A settlement, in which the transfers of value nominally occur on second reason, often overlooked, is that banks can a given day but remain provisional—that is, they could be provide credit services to payors so that a payor's reversed—until some specified time the next day. Next-day obligation can be discharged even though it may not settlement is particularly common in securities markets and is being addressed by the Group of Thirty recommendation to have the funds available when the payment is due. If move all securities to same-day settlement. 4. As it has in the United States, where daylight overdrafts on the books of the Federal Reserve Banks now total about $70 billion for funds transfers and another $90 billion for 2. See Parkinson (1990). book-entry securities transfers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Clearing and Payment Systems: The Role of the Central Bank 85 several common areas of concern regarding their As was noted earlier, the payment system is countries' payment systems as broadly defined, one of the first places where financial stress can including both clearing and settlement. manifest itself—through the inability of payment system participants to meet their payment obli- The Execution of Monetary Policy gations. Serious problems involving one or several payment system participants, if contained, One area of concern involves the relation be- should not pose a threat to the safe and efficient tween the payment system and the execution of functioning of the basic process. Such problems monetary policy. The result of the clearing and are properly the concern of the central bank in its settlement process is that an economic actor bank supervisory role. Depending on the nature obtains a bank deposit, which is one component of the problem, however, financial stress suffered of "money," from another economic actor. The by one or more participants can translate into link between economic activity and money oc- systemic problems that threaten the overall viacurs via the clearing and settlement process, bility of the payment system. The celebrated which in this manner can be seen as having a case of the failure of Bankhaus Herstatt in 1974, fundamental role in the execution of central bank for example, illustrates how just one institution's policy.5 Accordingly, central banks should have inability to discharge its payment obligations (in a special concern about clearing and payment this case payment of dollars against deutsche systems for broad reasons of monetary policy marks in foreign exchange transactions) can seimplementation. riously affect the positions of other payment system participants.6 When the financial prob- Stability of the Financial System lems of one or several participants threaten the viability of the entire process, the possibility of Another common area of concern among central systemic risk to the payment system becomes banks has to do with the stability of the financial real. system. This concern leads directly to an interest in the integrity of the payment system, that is, Efficient Operation of the Payment System the ability of the payment system to function safely and efficiently even during times of finan- The efficient operation of the payment system is cial stress. Such financial stress may be related to another legitimate concern of the central bank generalized market factors, such as wide swings and is important on at least two counts. First, the in asset prices that create difficulties for the proper handling of payments is a resource-con- "losers" in trading to meet their obligations. Or, suming activity that deserves attention on purely financial stress may be related to specific prob- economic grounds. In the United States, for lems with a large participant in the payment example, the annual cost of operating the domessystem, either a nonfinancial corporation or a tic payment system is estimated at about $60 bank, to meet its own and, in the case of a bank, possibly its customers' obligations. 6. The 1974 Herstatt case has given rise to the term "Herstatt risk," which describes the temporal dimension of the credit risk assumed by the counterparty in a foreign 5. Examples of the effects that malfunctions in the clearing exchange deal when payment of one currency becomes final and settlement process, even those resulting from mundane some time before the payment of the second currency is operational problems, may have for financial markets and completed. Herstatt risk arises in part because the operating central bank policy are not hard to find. In August 1990, a schedules of national payment systems are not synchronized. power outage on Wall Street led to disruptions in money In addition, there is no mechanism today that offers the market operations, including Fedwire. These operating dis- benefits of concurrency that could be derived from a deliveryruptions resulted in interest rate swings due to banks' inabil- versus-payment mechanism. In the case of the U.S. dollar, ity to move balances efficiently. Similarly, in November 1985 final settlement each day of roughly $425 billion in foreign an internal software problem at the Bank of New York exchange is delayed up to fourteen hours (for deals originated involving the securities transfer application led that bank to in the Far East) until the final settlement of CHIPS transfers incur massive daylight overdrafts with the Federal Reserve on the books of the Federal Reserve Bank of New York at and an overnight discount window loan of $23 billion. about 5:30 p.m. eastern time in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

86 Federal Reserve Bulletin • February 1991 billion.7 If the payment process involves substan- serve handles about half of large-value funds tial participation by the private sector, then we transfers and all book-entry securities transfers should have confidence that market forces will of U.S. government and certain agency securities tend to enhance the efficient operation of the over Fedwire. Since the passage of the Monetary payment system. The introduction of newer tech- Control Act of 1980, the Federal Reserve has nologies with high fixed investment costs, how- established fees for providing payment services. ever, may entail some element of increasing Payment services are offered in direct competireturns to scale in the payment processing as- tion with the private sector, and the Federal pects of clearing and settlement. To the extent Reserve recovers the full costs of providing these that returns to scale are increasing, the payment services, including the imputed costs of capital, process may exhibit natural monopoly character- debt, and taxes that a private firm would incur. istics. In the natural monopoly case, the central Revenues generated from providing payment serbank needs to be knowledgeable about payment vices now total nearly $800 million annually. processing operations and the behavior of the The Federal Reserve's dual role of competitor natural monopolist that operates the system, in and regulator of the payment system has been including the fees charged and the fairness of the a difficult and almost chronically controversial terms of access to the payment infrastructure. one. The Congress of the United States man- The second reason for the central bank's con- dated a very active operational role for the cern about the efficiency of the payment system Federal Reserve in the payment system because is that its functioning has implications for the of conditions arising from the fractionalized U.S. efficiency of the underlying markets that it sup- banking structure, in which true nationwide ports. Some of these markets, such as those for banking does not exist even today, and because certain financial instruments, are worldwide. The of the geographic size and diversity of the nation. location of the nucleus of activity for these The geography and legal environment in the markets may depend at least in part on the United States probably create a unique set of integrity and efficiency of the clearing and settle- conditions. The conditions that influence the ment process in different countries. Thus, coun- extent of a central bank's involvement in paytries that wish to play a role as financial centers ment system operations can change with time, must be concerned about the efficient operation however, so that the operating role of the central of their payment systems. bank should not necessarily be taken as a constant, but rather as a matter of policy choice Central Bank Payment System Operations influenced by environmental factors.8 Conditions other than geography and banking The actual operation of payment systems by structure, however, may lead a central bank to central banks encompasses a broad range of play a significant operating role in a nation's experience. At one end of the spectrum is the payment system. For example, in some nations, example of the United States, where the Federal such as France, the central bank plays a major Reserve, through the twelve Federal Reserve operational role in the payment system on behalf Banks, has been an active operator of both paper of the banking system. In this model, which is and electronic payment mechanisms since the probably influenced by economies of scale and passage of the Federal Reserve Act in 1913. It is national preferences regarding the degree of diestimated that the Federal Reserve handles one- rect governmental involvement in the managethird of all checks cleared in the United States ment of national "utilities," the central bank is and the majority of automated clearinghouse the logical entity to provide the payment infra- (ACH) transactions. Moreover, the Federal Re- structure. At the other end of the spectrum of payment system operations, a central bank may play a 7. This estimate does not include any imputed cost associated with the risks assumed by banks (including the central bank) in granting credit as part of the payment process. See Humphrey and Berger (1990). 8. See Johnson (1990). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Clearing and Payment Systems: The Role of the Central Bank 87 very minor role in the operation of its nation's the financial, structural, and operational features payment system. In Canada and the United that should characterize these systems and in Kingdom, for example, payment processing is which the central bank must have an essential largely carried out by private enterprises and is interest.9 Most important, however, are features governed by a ruling body composed of repre- that commit the private participants in the spesentatives of the financial services sector. The cialized clearing systems, especially in multilatcentral bank, while not directly involved in the eral clearing arrangements, to provide guaranoperations of the payment system, typically tees for the final settlement of the net positions plays a coordinating role in these arrangements that arise from the clearing. Such guarantees and, under certain terms and conditions, may must be founded upon carefully constructed enmake its books available for the settlement of trance criteria for participation in the arrangepayment transactions. ments. Moreover, members of such clearing ar- My purely personal point of view, which is rangements must have the incentives and conditioned by more than a decade of involve- capabilities to make their own credit judgements ment in the payment system, both as a practi- about the parties with whom they will do busitioner and as a policy advisor, is that the benefits ness. In addition, concrete commitments are of placing operations in the hands of the private needed in the form of loss-sharing arrangements sector should not be underestimated. Indeed, in backed by either collateral or lines of credit to virtually every other market for goods and ser- ensure the liquidity and resources to guarantee vices, the benefits of competition in ensuring a settlement in the event of default by one or more continuous high standard of performance are participants. best attained through a free market approach. A good deal of analysis is taking place in the Assuming for the moment that principles govern- United States in both the Federal Reserve and ing the safe operation of the payment process are the private sector to refine the principles that clearly laid out and that compliance with these should govern private large-value transfer sysprinciples is adequately supervised by the central tems, including delivery-versus-payment sysbank, then, all other things equal, the process tems. Recently, the Federal Reserve has given should generally work best when ruled by com- regulatory approval for the operation of private petitive forces in a market environment. clearing arrangements for U.S. government se- I say "generally" because of the notable ex- curities (through the Government Securities ception of the large-value payment mechanism Clearing Corporation) and for mortgage-backed that provides immediate settlement on the books securities (through the Participants Trust Comof the central bank. This payment mechanism pany). An arrangement for dematerializing (that may be considered an instrument of financial is, converting from paper to book-entry form), policy and is therefore best controlled by the clearing, and settling commercial paper transaccentral bank. It is virtually impossible for the tions has been started by the Depository Trust private sector to provide the same degree of Company. Finally, the members of CHIPS have safety and liquidity for the transfer of money adopted a system of settlement guarantees for balances that can be provided by the central that large-value funds transfer system. bank. Interbank systems for the transfer of large The principles underlying the proper operation amounts of funds are discussed later. of private clearing and settlement arrangements are universal. Indeed, the central banks of the Supervision of Private Clearing and Group of Ten (G-10) countries have recently Settlement Systems adopted international minimum standards to guide the operation of cross-border and multi- The central bank's involvement in establishing principles for, and, when necessary, in supervising and regulating private clearing and settlement 9. For an excellent review of these features, see the May 1988 address given by E. Gerald Corrigan at the Williamsburg arrangements that support large-value transacpayments symposium sponsored by the Federal Reserve tions, is especially critical. I will not recount here Bank of Richmond. See Corrigan (1990). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

88 Federal Reserve Bulletin • February 1991 currency interbank netting and clearing arrange- tems may operate in many countries and time ments.10 The G-10 central banks have also rec- zones, thus presenting central banks with a variognized the need to oversee the operation of ety of challenges that can only be met through significant interbank netting arrangements and cooperation in the development and execution of have established principles for cooperation payment policy. The international payment sysamong themselves when such arrangements op- tem, therefore, should be a focus of our attention erate across borders. in the years ahead, as reflected in the recent Clearly, a component of the financial system as actions of the G-10 central banks to adopt miniimportant as the payment system should not go mum standards to guide the operation of crossunsupervised. Active involvement by the central border interbank netting and clearing arrangebank in developing the principles under which pri- ments, along with principles of cooperation vate clearing arrangements operate is the most im- among the central banks themselves for overseeportant role in supervision of the payment system. ing such arrangements. An important tool for ensuring compliance with sound payment system principles is the regular commercial bank examination process, in which central banks or other governmental authorities THE ROLE OF THE CENTRAL BANK AS conduct safety and soundness inspections of indi- OPERATOR OF LARGE-VALUE PAYMENT vidual banks. A bank's participation in a private MECHANISMS clearing arrangement can be scrutinized as part of the commercial bank examination process, and Another aspect of the role of the central bank in effective influence can be applied to the clearing the payment system is, I believe, becoming inarrangement through the examination of the institu- creasingly important, if not essential. This role tions that use it. In addition, the proper application involves the operation of a large-value, real-time of sound payment system principles can be accom- funds transfer mechanism to handle final settleplished through supervision of the privately oper- ment transfers on the books of the central bank. ated clearing organizations that adopt these princi- Efficient financial markets are a prerequisite to ples for the processing of specialized payment the development of modern financial systems. As transactions. Although central bank settlement of was noted earlier, the financial system is today transactions processed through private clearing or- characterized by high volumes of large-value ganizations provides a vehicle to ensure that such transfers occurring each day. Experience has arrangements employ sound payment system prin- shown (for example, in the Herstatt case and, ciples, the sole sanction of refusing to settle may be more recently, in the failure of Drexel, Burnham, disruptive for established systems. Consequently, Lambert, Inc.), that the payment system is best having more flexible supervisory tools available to insulated from shocks that may have systemic the central bank is desirable. Such supervisory risk consequences, such as the inability of one or authority over clearing organizations might include more large participants to meet payment obligareview and approval of their rules, rule writing au- tions, by minimizing temporal risk and establishthority, and cease-and-desist and removal powers to ing private settlement guarantees to maintain address in a timely manner serious problems that confidence in the system. There is no surer way have implications for the safe and sound operation to provide finality and certainty of actual settleof the payment system. ment than through the irrevocable transfer of Finally, in an interdependent world where value on the books of the central bank. goods, services, and financial instruments are A large-value credit transfer mechanism run by traded routinely across national borders, the the central bank can be flexible enough to supneed for international payment mechanisms is port many types of payments, including net setincreasing dramatically. Such cross-border sys- tlement transfers generated by specialized clearing organizations. Further, the transfer of value can occur through central bank operation of a 10. See Bank for International Settlements (1990). delivery-versus-payment system for a subset of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Clearing and Payment Systems: The Role of the Central Bank 89 financial instruments, for example, government ity at no explicit cost. In Switzerland, in consecurities, in which gross transfers are settled as trast, the central bank does not permit daylight they occur. Or, the central bank can offer its overdrafts, and banks have managed to conduct real-time funds transfer capabilities to private their business without an intraday market. Yet, book-entry settlement systems to settle the net again, in Japan the central bank provides no positions of participants in these systems. intraday liquidity, but a private market for In summary, the availability of a final settle- daylight (morning and afternoon) credit has ment vehicle that minimizes, to the theoretical emerged. limit of eliminating, the time delay between the Daylight credit is a valuable commodity. Exteninitiation of a payment instruction and its final sions of daylight credit, however, have the ecosettlement is becoming more and more impor- nomic cost of exposing the lender to default risk. tant. There is, in my view, no substitute for a For the central bank, a direct connection exists central bank's playing the key role in govern- between the extension of intraday credit and dising, if not in operating, such a mechanism. Yet, count window or Lombard credit, because a borcaution must be exercised lest a central bank rower's inability to repay its daylight loan puts the become the primary source of the intraday central bank in the position of having to consider liquidity needed for a smoothly functioning converting the loan to an overnight credit. payment process. Along these lines, a relevant If something has value but is not priced, then it case study is our experience in the United tends to be overused and wasted. The current States with daylight overdrafts on the books of high level of daylight overdrafts in the United the central bank occurring as a result of the States and the resulting exposure of the Federal operation of a large-value funds transfer mech- Reserve to default risk suggest that intraday anism. credit is now being overused in the United As was noted earlier, the practice of provid- States. Accordingly, the Board of Governors ing intraday credit as part of the payment proposed in June 1989, and expects to implement process is now recognized as a core banking once a scheme for measuring daylight overdrafts function. In the United States, the Federal is adopted, an explicit fee for the use of daylight Reserve provides a huge amount of daylight credit extended by the Federal Reserve Banks. liquidity to the U.S. payment system. Nearly 40 The rationale for pricing daylight overdrafts is percent of these daylight overdrafts are in- two-fold. First, the Federal Reserve strongly curred by the ten largest overdrafters, while favors market solutions to resource allocation approximately three-quarters are incurred by problems. Second, we believe that the significant the fifty largest overdrafters. There is also a amount of daylight credit currently supplied private-sector source of intraday credit through should be controlled and reduced, without, how- CHIPS, with controls in place since October ever, disrupting the payment system. Charging a 1990 to help ensure timely end-of-day settle- relatively low fee should permit users of payment ment should a participant with a large intraday services to make the adjustments necessary to net debit position be unable to cover its obliga- reduce gradually the amount of daylight overtions by the close of business. drafts they incur while avoiding abrupt changes Daylight credit is roughly analogous to the in the supply of daylight credit.11 short-term working capital requirements of From a historical perspective, it seems clear to firms whose intraday patterns of receipts may me that the Federal Reserve had no intention whatnot exactly match their patterns of expendi- soever of providing large amounts of daylight credit, tures. A large, complex, market-oriented econ- priced or otherwise, when it began offering funds omy could not function effectively without a transfer services early in its history. The origins of certain amount of intraday liquidity to fund the gaps that result from the difficulty associated with synchronizing the timing of high volumes 11. The Federal Reserve Board has proposed phasing in a of payment transactions. In the United States, charge of 25 basis points at an annual rate for daily average daylight overdrafts as an appropriate starting point for daythe central bank currently provides this liquidlight overdraft pricing. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

90 Federal Reserve Bulletin • February 1991 the present-day Fedwire system date to 1918, and zen out of the payment system, would be isolated the designers and operators of the early system and doomed to immediate failure. could not have anticipated the significant increase in the value and velocity of payments. In fact, it was SUMMARY not until the 1970s that the increase in the volume of funds transfers resulted in the rapid intraday turn- The payment system is now recognized as an over of reserve balances, leading to material extenessential component of a smoothly operating sions of intraday credit. Accordingly, I think it market economy supported by an efficient and unlikely that the Federal Reserve would have posicomplex financial system. The central bank has tioned itself as a large provider of daylight credit had a proper role (1) in establishing public policy to the nature of the modern day phenomenon been govern the structure of clearing and settlement better understood when Fedwire was designed. arrangements in the payment system; (2) in Consideration of the role of the central bank supervising the payment system through the as the operator of a large-value funds transfer clearing organizations and banking institutions system leads naturally to the question of the that play key roles in risk management; (3) in "safety net" attributes of this role. Access to providing settlement across its books; and (4) in the payment system through clearing and setoperating large-value payment mechanisms. tlement services provided by the central bank, Much is to be gained by permitting private including perhaps central bank credit, is one entities to compete in the provision of payment component of the safety net that central banks services to the public. Because of the critical and governments place under their financial nature and "safety net" attributes of largesystems. In many countries, various implicit value payment mechanisms, however, operaand explicit forms of deposit insurance detion of such a mechanism, alone or in parallel signed to ensure public confidence in deposiwith similar privately operated mechanisms, is tory institutions and the safety of their deposits properly a role of the central bank. Central are also a component. Of course, the most banks must take care in controlling the intraday essential component of the safety net is the liquidity they provide to the financial system emergency liquidity assistance that is available and the payment system risk they absorb. through the central bank. Like any other part of the safety net, access to the payment system must be judiciously man- REFERENCES aged to ensure that it is not abused. Used properly, however, and in combination with the cen- Bank for International Settlements. Report of tral bank's supervisory and regulatory oversight the Committee on Interbank Netting Schemes of of the banking system, access to the payment the Central Banks of the Group of Ten Countries. system can be a useful regulatory tool in ensuring Basle: BIS, November 1990. that depository institutions do not fail premature- Board of Governors of the Federal Reserve ly.12 In essence, the central bank gives financial System. "The Federal Reserve in the Payments system participants confidence that the payments System," Federal Reserve Bulletin, vol. 76 (May they may receive from a troubled institution are 1990), pp. 293-98. good value. With this confidence, they will be Corrigan, E. Gerald. "Perspectives on Paywilling to continue to deal with the troubled ment System Risk Reduction," in Humphrey, institution, thus providing the time the bank U.S. Payment System, pp. 129-39. regulatory authorities need to work out an or- Goodfriend, Marvin S. "Money, Credit, Bankderly solution to the problem. Without such ing, and Payment System Policy," in Humphrey, confidence, a troubled institution, by being fro- U.S. Payment System, pp. 247-77. Humphrey, David B., ed. The U.S. Payment System: Efficiency, Risk and the Role of the Federal Reserve. Boston: Kluwer Academic 12. See Board of Governors of the Federal Reserve System (1990). Publishers, 1990. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Clearing and Payment Systems: The Role of the Central Bank 91 and Allen N. Berger. "Market Clearing House Association, Washington, D.C., Failure and Resource Use: Economic Incen- May 2, 1990. tives to Use Different Payment Instruments," Parkinson, Patrick M. "Innovations in Clearin Humphrey, U.S. Payment System, pp. 45- ing Arrangements: A Framework for Analysis." 92. Paper prepared for the Conference on Bank Johnson, Manuel H. Speech delivered at the Structure and Competition, Federal Reserve Annual Conference of the National Automated Bank of Chicago, May 9, 1990. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

92 Industrial Production and Capacity Utilization Released for publication on December 14 fell 3.6 percent, owing mainly to unseasonably warm weather. Elsewhere, industrial output de- Industrial production fell 1.7 percent in November clined noticeably for the third successive month. after a decline of 0.9 percent (revised) in October. A Total industrial capacity utilization dropped 1.5 per- 20 percent drop of motor vehicle assemblies cou- centage points to 80.9 percent, its lowest level since pled with a sharp curtailment in output of related May 1987. At 107.5 percent of its 1987 annual parts and materials accounted for more than half of average, total industrial production in November the overall loss. In addition, production at utilities was 0.6 percent below its level of a year ago. Industrial production indexes Twelve-month percent change Twelve-month percent change Capacity and industrial production Ratio scale, 1987 production = 100 Ratio scale, 1987 production = 100 All series are seasonally adjusted. Latest series, November. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

93 1987 = 100 Percentage change from preceding month PPPeeerrr--ccceeennntttaaagggeee ccchhhaaannngggeee,,, IIInnnddduuussstttrrriiiaaalll ppprrroooddduuuccctttiiiooonnn 1990 1990 NNNooovvv... 111999888999 tttooo Aug.r Sept/ Oct.r Nov.p Aug/ Sept/ Oct/ NOV.P NNNooovvv... 111999999000 Total index 110.5 110.4 109.4 107.5 .1 -.1 -.9 -1.7 -.6 Previous estimates 110.4 110.6 109.6 .0 .2 -.8 Major market groups Products, total 110.9 111.1 110.1 108.4 .0 .1 -.8 -1.6 -.4 Consumer goods 107.8 108.1 107.0 104.9 .3 .3 -1.0 -2.0 -2.3 Business equipment 125.4 126.5 125.4 123.0 .4 .8 -.8 -1.9 3.7 Construction supplies 105.3 103.5 102.5 100.8 -1.3 -1.7 -.9 -1.7 -5.8 Materials 109.7 109.3 108.2 106.2 .1 -.4 -1.0 -1.8 -.7 Major industry groups Manufacturing 111.1 111.0 110.1 108.2 .0 -.1 -.8 -1.7 -.6 Durable 113.5 113.6 112.3 109.5 .1 .0 -1.1 -2.5 -.5 Nondurable 108.1 107.6 107.2 106.6 -.1 -.4 -.4 -.6 -.7 Mining 102.4 103.7 102.6 102.5 -1.6 1.2 -1.0 -.1 1.3 Utilities 111.4 110.8 109.1 105.1 1.6 -.5 -1.6 -3.6 -3.0 Percent of capacity CCCaaapppaaaccciiitttyyy gggrrrooowwwttthhh,,, CCCaaapppaaaccciiitttyyy uuutttiiillliiizzzaaatttiiiooonnn 1989 1990 NNNooovvv... 111999888999 AAvveerraaggee,, LLooww,, HHiigghh,, tttooo 11996677--8899 11998822 11998888--8899 NNNooovvv... 111999999000 Nov. Aug/ Sept/ Oct/ NOV.P Total industry 82.2 71.8 85.0 83.5 83.6 83.3 82.4 80.9 2.7 Manufacturing 81.5 70.0 85.1 83.0 82.8 82.5 81.6 80.0 3.2 Advanced processing 81.1 71.4 83.6 81.7 81.4 81.5 80.7 78.9 3.5 Primary processing 82.3 66.8 89.0 86.1 85.9 84.7 83.8 82.4 2.5 Mining 87.3 80.6 87.2 87.1 89.2 90.4 89.6 89.6 -1.4 Utilities 86.8 76.2 92.3 86.2 87.9 87.4 85.9 82.7 1.1 r Revised. NOTE. Indexes are seasonally adjusted, p Preliminary. In market groups, output of consumer goods ticularly in electricity generation and coal mining. other than motor vehicles was curtailed sharply Among other materials, production of textiles fell again in November. The production of goods for the again, and output of basic metals edged down after home, such as appliances and furniture, has weak- having declined sharply in the previous two months; ened considerably since June, and clothing output in contrast, production of paper materials continued continued its downward trend evident throughout to be well maintained. this year. The output of consumer energy products, In industry groups, manufacturing output fell particularly gasoline and electricity for residential 1.7 percent in November; the factory utilization use, also declined sharply in November. The pro- rate fell 1.6 percentage points to 80 percent, its duction of business equipment other than autos and lowest level since January 1987. Excluding motor trucks was reduced about V4 percent in November, vehicles and parts, manufacturing output fell 0.8 after a decrease of about V2 percent in October. This percent in November, after a decline of 0.7 recent weakness has been concentrated in industrial percent in October and a drop of 5.0 percent in equipment; output in this sector had risen sharply, September. The utilization rate at mines was on balance, between March and September. In unchanged in November, but the operating rate November, the production of construction supplies for utilities fell sharply again. dropped further and was nearly 7 percent below the For the second month, declines were widerecent high levels reached early this year. Apart spread throughout manufacturing. Output of dufrom the decline in parts and materials for motor rable goods fell 2.5 percent in November; a vehicles, the most significant decreases in output of decrease of more than 8 percent in transportation materials occurred in the energy components, par- equipment accounted for about half the decline, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

94 Federal Reserve Bulletin • February 1991 while production of furniture, lumber, and fabri- which utilization rates are well below their cated metals also dropped sharply. Output of longer-run averages. Most other primary pronondurable goods fell 0.6 percent in November, cessing industries still show above-average opand declines were somewhat less widespread erating rates despite the recent declines. In than those in durables. contrast, utilization for advanced processing Utilization in both primary and advanced industries has fallen to 78.9 percent, more than processing industries fell sharply in November. 2 percentage points below its longer-run aver- The operating rate for primary processing now age. Rates for motor vehicles and parts, apstands at 82.4 percent, about the same as its parel, printing and publishing, and instruments 1967-89 average. The weakest primary pro- are all more than 4 percentage points below cessing industries are lumber and textiles, in their respective longer-run averages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

95 Announcements CHANGE IN THE DISCOUNT RATE Monetary Control Act of 1980, primarily to permit greater precision of monetary control when The Federal Reserve Board announced on De- policy focused on reserve aggregate targeting. In cember 18, 1990, a reduction in the discount rate subsequent years, as the Federal Reserve moved from 7 percent to 6V2 percent, effective Wednes- away from the procedures in effect in the early day, December 19. 1980s, which required a broad reserve base, Action was taken against the background of reserve requirements on nonpersonal time acweakness in the economy, constraints on credit, counts have become somewhat of an anachroand slow growth in the monetary aggregates. The nism. Moreover, the current 3 percent requirereduction, in part, realigns the discount rate with ment has placed depository institutions at a market interest rates. disadvantage relative to other providers of In taking the action, the Board voted on re- credit, spawning efforts to circumvent the requests submitted by the boards of directors of the quirement. Federal Reserve Banks of Boston, New York, The Board took action at this time also in Richmond, Atlanta, Chicago, St. Louis, Minne- response to mounting evidence that commercial apolis, Kansas City, and Dallas. The Board sub- banks have been tightening their standards of sequently approved similar requests by the creditworthiness and the terms and conditions boards of directors of the Federal Reserve Banks for many types of loans. While much of this of Philadelphia, Cleveland, and San Francisco, tightening has been welcome from the standpoint also effective December 19. The discount rate is of safety and soundness, it has in recent months the interest rate that is charged depository insti- begun to exert a contractionary influence on the tutions when they borrow from their District economy. This influence has been reflected in Federal Reserve Banks. slow growth in the broad monetary aggregates and in bank credit. Lower reserve requirements at any given level REDUCTION IN THE RESERVE of money market interest rates will reduce costs REQUIREMENTS ON NONPERSONAL TIME to depository institutions, providing added incen- DEPOSITS AND NET EUROCURRENCY tive to lend to creditworthy borrowers, thus LIABILITIES countering, to some extent, the recent tightening in credit terms. The Federal Reserve Board announced on De- The change will be implemented in two steps. cember 4, 1990, a reduction in reserve require- The reserve ratios will be reduced to 1.5 percent ments on nonpersonal time deposits and on net in the reserve maintenance period that begins Eurocurrency liabilities. December 13 and to zero in the following main- There is currently a 3 percent reserve require- tenance period beginning December 27. This ment on nonpersonal time deposits with an orig- phase-in occurs at a time when there otherwise inal maturity of less than eighteen months and on would be a large seasonal need to provide renet Eurocurrency liabilities. Both requirements serves to depository institutions. will be lowered to zero over coming weeks. For small institutions that report and have The Board has been reviewing these reserve fixed required reserves on a quarterly basis, the requirements for some time. Reserve require- reduction will take place in the next quarterly ments on nonpersonal time deposits and net period starting January 17, 1991. Eurocurrency liabilities were retained in the Currently, required reserves on nonpersonal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

96 time deposits total about $11.7 billion and about S&L Association, Chicago, Illinois; and Wood- $1.9 billion on net Eurocurrency liabilities. bury C. Titcomb, President and CEO, Peoples About $2 billion of these reserve requirements Bancorp of Worcester, Inc. and Peoples Savings are satisfied through vault cash holdings, with the Bank, Worcester, Massachusetts. rest met by balances at the Reserve Banks. The other members of the Council are the No change was made by the Board in the current following: David L. Hatfield, President of Fidellevel of reserve requirements on transaction ac- ity Federal Savings and Loan Association, Kalcounts—3 percent on the first $40.4 million of net amazoo, Michigan; Lynn W. Hodge, President transaction accounts and 12 percent on levels above and CEO of United Savings Bank Inc., Greenthat amount. The "low reserve tranche" will be wood, South Carolina; Elliot K. Knutson, Chairraised to $41.1 million later this month. man and CEO of Washington Federal Savings & A zero requirement has applied for many years Loan Association, Seattle, Washington; and to nonpersonal time deposits with an original John Wm. Laisle, President and CEO of Midmaturity of eighteen months or more. First Bank SSB, Oklahoma City, Oklahoma. APPOINTMENT OF NEW MEMBERS TO THE REGULATION H: AMENDMENT THRIFT INSTITUTIONS ADVISORY COUNCIL The Federal Reserve Board amended on Decem- The Federal Reserve Board announced on De- ber 20, 1990, its Regulation H (Membership in cember 21, 1990, the names of seven new mem- the Federal Reserve System), concerning the bers appointed to its Thrift Institutions Advisory payment of dividends by state member banks. Council (TIAC) and designated a new President The rule revises the way in which state member of the Council for 1991. banks calculate their dividend payment capacity The Council is an advisory group made up of and brings the treatment of loan-loss reserves for twelve representatives from thrift institutions. dividend payment purposes into line with current The panel was established by the Board in 1980 regulatory reporting standards and generally acand includes representatives from savings and cepted accounting principles (GAAP). loan associations, savings banks, and credit Portions of the rule have been made effective unions. The Council meets at least four times immediately to allow state member banks to use each year with the Board of Governors to discuss the new rule in calculating dividend payments for developments relating to thrift institutions, the 1990. housing industry, mortgage finance, and certain The provisions of the Board's rule are consisregulatory issues. tent with a similar rule published for national Marion O. Sandler, President/Chief Executive banks by the Office of the Comptroller of the Officer of World Savings and Loan Association, Currency on December 13, 1990. Oakland, California, will serve as President. The seven new members, named for two-year terms that began January 1, are the following: PROPOSED ACTIONS Daniel C. Arnold, Chairman and President of Farm and Home Financial Corporation, Hous- The Federal Reserve Board issued for public ton, Texas; James L. Bryan, President and CEO, comment on December 19, 1990, a proposal to TEXINS Credit Union, Richardson, Texas; require depository institutions that originate or Richard A. Larson, Chairman and CEO, West receive commercial automated clearinghouse Bend Savings Bank, West Bend, Wisconsin; (ACH) transactions through the Federal Reserve Preston Martin, Managing Director, WSGP Part- Banks to establish electronic access to the Reners, L.P., San Francisco, California; Richard D. serve Banks for ACH services. Comments are Parsons, President and CEO, the Dime Savings due by March 27, 1991. Bank of New York, New York City; Edmond M. The Federal Reserve Board issued for public Shanahan, President and CEO, Bell Federal comment on December 5, 1990, interim amend- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

97 ments it has adopted to Regulation CC (Avail- Division of Federal Reserve Bank Operations to ability of Funds and Collection of Checks) to Division of Reserve Bank Operations and Payment conform the regulation to a recent amendment to Systems to appropriately reflect this Division's rethe Expedited Funds Availability Act, pending sponsibilities for overseeing Reserve Bank activities adoption of a final rule. Comment was requested and developments in payment systems. It also anby January 11, 1991. nounced, in the Division of Reserve Bank Operations and Payment Systems, the promotion of David L. Robinson from Associate Director to Deputy CHANGES IN BOARD STAFF Director of Finance and Control and the assignment of Bruce J. Summers from the Federal Reserve The Board of Governors announced a change, Bank of Richmond to fill the position of Deputy effective December 17, 1990, in the name of the Director of Payments and Automation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

98 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON NOVEMBER 13, 1990 leveled out in real terms over August and September, when a surge in energy prices caused a Domestic Policy Directive substantial drop in real disposable income. Nevertheless, over the third quarter as a whole, the The information reviewed at this meeting sug- pace of spending was substantially higher than in gested that economic activity was weakening in the previous quarter. Major surveys of consumer the fourth quarter. A substantial decline in real attitudes continued to indicate a sharp deterioradisposable income and falling consumer confi- tion in consumer confidence. Total private housdence pointed to some softening in consumer ing starts edged lower in September; sales of new demand, and advance indicators of business cap- and existing homes continued to weaken, and the ital spending signaled considerable sluggishness vacancy rate for rental apartments persisted at a in investment expenditures. At the same time, high level. businesses appeared to be keeping a tight rein on Shipments of nondefense capital goods rose on their inventories, partly through recent sharp balance over the August-September period; the cuts in output. Industrial production had turned gain resulted in part from increases for office and down after rising moderately during the summer, computing equipment. New orders for business and recent declines in nonfarm payroll employ- equipment pointed to a considerable softening in ment and average workweeks indicated some spending for such goods in coming months. Nonemerging slack in labor markets. Broad measures residential construction activity fell appreciably of prices continued to be boosted by the surge in in August and September, retracing the increases energy prices, but the trend in labor costs ap- recorded in the two previous months. Persisting peared to have improved slightly. high vacancy rates for commercial properties in Total nonfarm payroll employment declined many areas, financial pressures on builders and further in October. Job losses were widespread their lenders, and the downward trend in conacross industries but were particularly notable in struction permits and contracts suggested that the manufacturing and construction sectors. Em- nonresidential building activity would remain ployment also contracted at wholesale and retail sluggish. Manufacturing inventories posted only trade establishments for the third straight month. modest increases over the August-September In October, the civilian unemployment rate held period, and the ratio of stocks to shipments steady at 5.7 percent while initial claims for edged lower. At the retail level, non-auto invenunemployment insurance rose steeply. tories changed little on balance over July and After rising moderately during the summer, August, and inventory-sales ratios remained industrial production declined substantially in Oc- within the range that had prevailed for an extober. Part of the drop reflected a slower pace of tended period. motor-vehicle assemblies; however, reductions in The nominal U.S. merchandise trade deficit output were widespread in other industries as widened slightly in August from the revised July well, especially in those producing non-auto con- rate; for the two months combined, the deficit sumer goods and construction supplies. Total was substantially higher than its average rate for industrial capacity utilization fell in October after the second quarter. In August, a sharp increase edging up on balance in the previous two quarters. in the price of imported oil was only partly offset Consumer spending was estimated to have by a decline in the quantity imported; the value Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

99 of non-oil imports was little changed from the to that under consideration at the time of the elevated July level. Exports picked up somewhat meeting and the absence of major unexpected in August but remained within the range re- economic or financial developments. After such corded in the first half of the year. The perfor- an easing, the directive provided that slightly mance of the major foreign industrial economies greater reserve restraint might be acceptable had been mixed. In Western Germany and Japan, during the remainder of the intermeeting period the pace of economic activity remained robust in or somewhat lesser reserve restraint would be the third quarter, and growth in France picked up acceptable depending on progress toward price after a weak second quarter. In Canada and the stability, the strength of the business expansion, United Kingdom, by contrast, economic activity the behavior of the monetary aggregates, and appeared to be declining. Measures of consumer developments in foreign exchange and domestic price inflation had risen for almost all of the financial markets. The reserve conditions conmajor industrial countries, reflecting mainly the templated by the Committee were expected to be effects of higher energy prices. consistent with growth of M2 and M3 at annual Producer prices of finished goods rose sharply rates of about 4 and 2 percent respectively over in October, boosted for the third consecutive the period from September through December. month by the effects of higher oil prices; food After the Committee meeting, open market prices also advanced and reversed their Septem- operations were directed initially at maintaining ber decline. Producer prices of non-energy, non- unchanged reserve conditions. In late October, food finished goods increased in September and against the background of a weakening economy October at about the moderate average pace and in light of the conclusion of a budget agreeevident in previous months of the year. At earlier ment involving large reductions in the federal stages of processing, the prices of metals and deficit over the next several years, pressures on some raw materials had fallen considerably, de- reserve conditions were eased slightly. Over the spite the depreciation of the dollar on foreign course of the intermeeting period, several techexchange markets. Higher oil prices continued to nical adjustments also were made to assumed push up consumer prices, which rose in Septem- levels of adjustment plus seasonal borrowing to ber at the elevated August rate. Excluding en- reflect the declines in seasonal borrowing activity ergy and food items, consumer inflation slowed a that typically occur during the autumn. Adjustlittle in September, but the rate of increase over ment plus seasonal borrowing fell from about the first nine months of the year was appreciably $500 million in the reserve maintenance period above the pace during 1989. The growth in total completed immediately after the October meetcompensation costs for private industry workers ing to an average of roughly $250 million thus far decelerated in the third quarter, reflecting in the maintenance period ending the day after smaller gains in wages and salaries. Measured on this meeting. In the context of more cautious a year-over-year basis, twelve-month changes in reserve management policies at some banks and total labor compensation had fallen a bit below some carryover of end-of-quarter pressures, the the rates recorded earlier in the year, when federal funds rate generally remained near SlA increases in payroll taxes and the minimum wage percent in the early part of the intermeeting exerted their initial effect on labor costs. Average period. Subsequently, as end-of-quarter presannual earnings of production or nonsupervisory sures receded, the funds rate edged down to 8 workers were unchanged in October. percent; late in the period, after the slight easing At its meeting on October 2, the Committee of reserve conditions, the funds rate slipped adopted a directive that called for maintaining further to 73/4 percent or a bit below. Most other the existing degree of pressure on reserve posi- market interest rates also declined over the intions for at least a short period after the meeting. termeeting period; however, the reductions It was presumed that some slight easing would be tended to be greater for Treasury than for private implemented later in the intermeeting period, issues, reflecting increased demand for highassuming passage of a federal budget resolution grade assets by investors concerned about credit calling for a degree of fiscal restraint comparable quality. Yields on Treasury bonds rose apprecia- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

100 Federal Reserve Bulletin • February 1991 bly shortly after the October meeting when a tial and nonresidential construction. In these budget accord initially failed to receive congres- circumstances, a mild downturn in overall activsional approval; they more than retraced these ity was projected for the near term, but growth increases as prospects for fiscal restraint grew was expected to resume during the first half of brighter, clearer signs of a softer economy 1991, aided in part by the assumed decline in oil emerged, and investors sought higher-quality in- prices. The staff anticipated that exports would vestments. grow relatively rapidly over the next several In foreign exchange markets, the trade- quarters in association with continued expansion weighted value of the dollar in terms of the other on average in the economies of major foreign G-10 currencies declined considerably further industrial nations and the increased international over the intermeeting period. The long budget competitiveness of U.S. goods owing to the stalemate, indications of additional weakness in dollar's depreciation over the past year. As busthe U.S. economy, concerns about the U.S. iness sales and orders improved, production financial system, and associated expectations of could be expected to pick up and business investan easing in U.S. monetary policy contributed to ment outlays to rise. The outlook for inflation the drop in the dollar. The decline was intensified remained clouded by the uncertainties regarding by signs that monetary policy remained restric- oil prices, but given the assumption of a sizable tive in Japan and might tighten in Germany. decline in the latter and some increased slack in In October, M2 grew only slightly after two resource utilization, the staff projected a slower months of relatively rapid expansion, while M3 rise in prices and labor costs. was about unchanged. The sluggishness of M2 in In the Committee's discussion of the economic October owed partly to a contraction in its trans- situation and outlook, members focused on the actions and liquid savings components. The man- growing indications of a softening economy. Some aged-liability components of M3 also were weak, key measures of business conditions suggested a reflecting restrained asset growth at banks and decline in the economy, and business and consumer stepped-up thrift resolution activity around the sentiment appeared to have deteriorated appreciaend of the quarter. Through October, expansion bly; however, the available data on recent developof M2 was estimated to be somewhat below the ments were still limited, particularly with respect to middle of the Committee's range for the year and consumer and business capital spending, and as a growth of M3 near the lower end of its range. The consequence were still inconclusive. Moreover, expansion of total domestic nonfinancial debt some developments that typically can contribute to appeared to have been near the midpoint of its a recession, such as a substantial buildup in invenmonitoring range. tories, did not seem to be a factor in the current The staff projection was prepared against the economic situation. Assuming lower oil prices in the background of continuing uncertainties associ- months ahead and given the outlook for further ated with the situation in the Persian Gulf region. strength in exports stemming especially from the The staff continued to assume that no major substantial decline that had occurred in the foreign further disruption to world oil supplies would exchange value of the dollar, a relatively mild downoccur and that oil prices would drop appreciably turn followed by a limited rebound next year was in the first half of next year. The staff also viewed as a reasonable expectation. assumed continuing constraints on the supply of Many of the members noted that, while the credit, reflected in tighter terms and reduced most likely outcome was a relatively mild and availability, in response to perceptions of in- brief downturn, there were risks of a more severe creased credit risks in a relatively weak economy or prolonged contraction in economic activity. and the problems facing many financial interme- The substantial decline that had occurred in diaries. In the near term, higher energy costs business and consumer confidence likely rewould damp real disposable income and con- flected not only the course of events in the sumer spending, and reduced credit availability Middle East, but perhaps also uncertainty about would be among the factors restraining outlays developments in that area and their implications for business equipment and spending for residen- for oil prices. A cutback in spending that more Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee 101 fully reflected these attitudes could be greater and consumer sentiment appeared among other than currently appeared to be under way. An- developments to have arrested the growth in real other source of risks that also could be contrib- consumer spending in recent months; retail sales, uting to the decline in confidence was the state of notably of automobiles and other durables, were the financial system, including concerns about expected to remain weak and possibly decline the condition of many financial institutions, a over the next several months, although the procurtailed supply of credit to many borrowers, spective increase in federal excise taxes on cerand more generally a widespread perception of tain luxury items might well boost sales of such relatively fragile financial conditions. Bank loan goods through year-end at the expense of sales officers appeared to be reacting increasingly to early next year. Members agreed that in the what they perceived as rising credit risks in a absence of further disturbances in oil markets, softening economy; their incentives to restrict growth in real consumer spending could be extheir lending were strengthened by concerns pected to resume, especially if oil prices were to about the capital positions of their own banks decline; indeed, such growth was likely to proand the possibility that their institutions could vide a major impetus for some strengthening in face a reduced availability or higher cost of the economy next year. Net exports also apfunds. To an important extent, banker attitudes peared to be positioned to contribute to expandwere being influenced by developments in the ing business activity as a result of the substantial real estate markets; further, or more widespread, declines that had occurred in the foreign exweakening in those markets would add to prob- change value of the dollar and sustained expanlem loans in bank portfolios and could foster sion in a number of major foreign industrial further cutbacks in bank lending activity more countries. Business contacts reported that degenerally. Financial institutions other than banks mands from abroad were continuing to buttress also were experiencing funding and other diffi- manufacturing activity in many areas, although culties, raising concerns that they might become there were indications of some slippage in such less willing suppliers of credit. For now, growth demands from some countries. The prospects for in credit and related expansion in money were business investment remained less promising for sluggish but did not seem to be collapsing. None- a number of reasons, including the uncertain theless, members remained concerned that sup- outlook for sales and profits and the weakness in plies of credit might prove inadequate to the commercial construction associated with earlier needs of many qualified borrowers, thereby overexpansion. With regard to the outlook for deepening any downturn and impeding a satisfac- fiscal policy, the difficult and extended process of tory rebound in economic activity. securing the recent budget agreement and the Members continued to report uneven condi- still massive deficits projected for the nearer term tions in different parts of the country and sectors appeared to have had an adverse effect at least of the economy, but signs of some weakening in temporarily on attitudes, and perhaps as a conbusiness activity were increasing in most areas. sequence financial markets had not yet fully Moreover, in keeping with broad survey results, recognized the appreciable degree of enforceable contacts indicated that business and consumer restraint that was built into that agreement. confidence had deteriorated in virtually all parts Turning to the outlook for inflation, members of the country, including areas that were experi- referred to accumulating indications that the core encing at least modest growth in overall business rate of inflation, excluding the discernible effects activity. At the same time, conditions were re- of the surge in energy prices, might have stabiported to be generally favorable in agriculture, lized. There were signs of diminished wage presexport demands were growing, and on the whole sures in the aggregate data, and the latter were business inventories were indicated to be close to confirmed by reports from several parts of the desired levels, at least given current levels of country. In the context of reduced pressures on demand. productive resources, it now seemed more likely Members noted that the adverse effects of that the effects of higher oil and import prices sharply higher oil prices on disposable incomes would not be built into the general price and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

102 Federal Reserve Bulletin • February 1991 wage structure. Nonetheless, members cau- policy on balance had been on an appropriate tioned that an extended period probably would course. However, the recent weakness in monebe needed before substantial progress was tary growth was becoming a matter of increasing achieved in reducing inflation, given the strength concern and was an important consideration for of inflationary expectations. some members in their support of some easing of In the Committee's discussion of policy for the reserve conditions. intermeeting period ahead, all of the members In regard to possible intermeeting adjustments indicated that they favored or could support a in the degree of reserve pressure, most of the proposal calling for some slight immediate easing members indicated a preference for retaining the of reserve conditions; one member expressed a current bias in the directive toward potential preference for somewhat greater easing while easing. In support of this view, it was noted that in another saw advantages in delaying the easing prevailing circumstances an intermeeting move, if move. The growing signs of a softening econ- any, was more likely to be toward some easing omy, the related vulnerability of many business than the reverse. A few members questioned, and financial firms to added financial strains, and however, whether such a bias was desirable in the increased reluctance of institutional lenders light of the slight easing that the members already to accommodate less than prime business bor- contemplated, especially since any additional rowers suggested that the Committee should move would represent the third easing action by remain especially alert during the weeks ahead to the Committee in a relatively short period. In the signals that some further easing was appropriate. circumstances, it was understood that a tilt The lack of significant monetary growth over the toward ease in the directive would not imply any course of recent months also was seen as point- commitment to a second easing action during the ing in the same direction. However, the weak- intermeeting period; in particular, the potential ness in the economy reflected in part an external desirability of any additional easing would need to shock whose effects could not be entirely offset be assessed in the light of market reactions to the without exacerbating a still substantial inflation, initial action, especially the behavior of the dollar and the dollar had been under considerable in the foreign exchange markets. downward pressure in the foreign exchange mar- At the conclusion of the Committee's discuskets. In this situation, any easing needed to be sion, all of the members indicated their acceptapproached with caution. While there were some ance of a directive that called for a slight reducdifferences in emphasis, the members agreed that tion in the degree of pressure on reserve a limited degree of easing at this juncture would positions. The directive also called for giving provide some insurance against a deep and pro- weight to potential developments that might relonged recession without incurring a substantial quire some slight further easing during the interrisk in current circumstances of fostering inten- meeting period. Accordingly, slightly greater resified inflationary pressures. serve restraint might be acceptable during the In their discussion, members took account of a intermeeting period or somewhat lesser reserve staff analysis that pointed to weaker monetary restraint would be acceptable depending on proggrowth in the current quarter than had been ress toward price stability, the strength of the anticipated at the time of the previous meeting. business expansion, the behavior of the mone- The slower expansion in M2 and M3 appeared to tary aggregates, and developments in foreign reflect the tightening supply of credit through exchange and domestic financial markets. depository institutions and the associated damp- At the conclusion of the meeting the following ing of asset expansion and funding needs at those domestic policy directive was issued to the Fedinstitutions. In addition, slower projected growth eral Reserve Bank of New York: in nominal GNP in the current quarter implied reduced demands for money and credit. Some The information reviewed at this meeting suggests a members commented that the projected expan- weakening in economic activity. Total nonfarm payroll employment declined further in October, reflecting sion of both M2 and M3 within the Committee's sizable job losses in manufacturing and construction; ranges for the year suggested that monetary the civilian unemployment rate held steady at 5.7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee 103 percent. Industrial production declined sharply in Oc- In the implementation of policy for the immediate tober after rising moderately during the summer. Con- future, the Committee seeks to decrease slightly the sumer spending is estimated to have flattened out in existing degree of pressure on reserve positions. Takreal terms over August and September when a surge in ing account of progress toward price stability, the energy prices caused a substantial drop in real dispos- strength of the business expansion, the behavior of the able income. Advance indicators of business capital monetary aggregates, and developments in foreign spending point to considerable softening in investment exchange and domestic financial markets, slightly in coming months. Residential construction weakened greater reserve restraint might or somewhat lesser further in the third quarter. The nominal U.S. mer- reserve restraint would be acceptable in the intermeetchandise trade deficit widened substantially in July- ing period. The contemplated reserve conditions are August from its average rate in the second quarter as expected to be consistent with growth of both M2 and imports strengthened. Markedly higher oil prices have M3 over the period from September through Decemboosted consumer and producer prices in recent ber at annual rates of about 1 to 2 percent. months. The latest data on labor costs suggest some Votes for this action: Messrs. Greenspan, Corslight improvement from earlier trends. rigan, Angell, Boehne, Boy kin, Hoskins, Kelley, Most interest rates have fallen somewhat since the Committee meeting on October 2. In foreign exchange LaWare, Mullins, Ms. Seger, and Mr. Stern. Votes markets, the trade-weighted value of the dollar in against this action: None. terms of the other G-10 currencies has declined con- At this meeting, the Committee reviewed its siderably further over the intermeeting period. practice of including a sentence in the opera- In October, M2 grew only slightly after two months of relatively rapid expansion, while M3 was about tional paragraph of the directive that referred to unchanged. Through October, expansion of M2 was the possibility of a Committee consultation to be estimated to be somewhat below the middle of the called at the Chairman's discretion during an Committee's range for the year and growth of M3 near intermeeting period in the event that the federal the lower end of its range. Expansion of total domestic funds rate fluctuated persistently outside a relanonfinancial debt appears to have been near the midpoint of its monitoring range. tively wide range. That range had been set at 4 The Federal Open Market Committee seeks mon- percentage points for many years and was a etary and financial conditions that will foster price legacy of now outdated operating procedures stability, promote growth in output on a sustainable that had been in place in the early 1980s. The basis, and contribute to an improved pattern of members agreed that under current procedures international transactions. In furtherance of these objectives, the Committee at its meeting in July the directive sentence in question served no real reaffirmed the range it had established in February purpose, at least in its present form, in terms of for M2 growth of 3 to 7 percent, measured from the providing guidance for holding intermeeting confourth quarter of 1989 to the fourth quarter of 1990. sultations. Such consultations are based on un- The Committee in July also retained the monitoring derstandings that vary over time, depending on range of 5 to 9 percent for the year that it had set for growth of total domestic nonfinancial debt. With surrounding circumstances. Accordingly, all of regard to M3, the Committee recognized that the the members favored or found acceptable a proongoing restructuring of thrift depository institu- posal calling for deletion of the sentence. The tions had depressed its growth relative to spending members noted that the deletion would have no and total credit more than anticipated. Taking acimplications for the implementation of monetary count of the unexpectedly strong M3 velocity, the Committee decided in July to reduce the 1990 range policy or for the Committee's understandings or to 1 to 5 percent. For 1991, the Committee agreed on procedures with respect to what reserve market, provisional ranges for monetary growth, measured financial, or economic conditions would call for from the fourth quarter of 1990 to the fourth quarter consultations between meetings. of 1991, of 2V2 to 6!/2 percent for M2 and 1 to 5 At the conclusion of this discussion, the members percent for M3. The Committee tentatively set the associated monitoring range for growth of total do- voted to delete the sentence incorporating the fedmestic nonfinancial debt at 4Vi to 8V2 percent for eral funds range from the operational paragraph. 1991. The behavior of the monetary aggregates will continue to be evaluated in the light of progress Votes for this action: Messrs. Greenspan, Cortoward price level stability, movements in their ve- rigan, Angell, Boehne, Boy kin, Hoskins, Kelley, locities, and developments in the economy and finan- LaWare, Mullins, Ms. Seger, and Mr. Stern. Votes cial markets. against this action: None. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

105 Legal Developments FINAL RULE—AMENDMENT TO REGULATION D Part 208—Reserve Requirements of Depository Institutions The Board of Governors is amending 12 C.F.R. Part 204, its Regulation D (Reserve Requirements of 1. The authority citation for Part 204 continues to read Depository Institutions), requiring depository insti- as follows: tutions to maintain reserves of 3 percent on their nonpersonal time deposits with original maturities or Authority: Sections 11(a), 11(c), 19, 25, 25(a) of the notice periods of less than one and one-half years. Federal Reserve Act (12 U.S.C. 248(a), 248(c), 371a, Such time deposits are sometimes referred to as 371b, 461, 601, 611); section 7 of the International "short-term nonpersonal time deposits." Also pur- Banking Act of 1978 (12 U.S.C. 3105); and section 411 suant to section 19 of that Act, the Board's Regula- of the Garn-St Germain Depository Institutions Act of tion D requires any depository institution, including 1982 (12 U.S.C. 461). a U.S. branch or agency of a foreign bank, to maintain reserves of 3 percent on net balances owed 2. In section 204.2, footnote 2 in paragraph (c)(l)(i) is to a directly related foreign office or to foreign offices revised to read as follows: of nonrelated depository institutions, on loans to U.S. residents made by related foreign offices, and on assets held by related foreign offices acquired Section 204.2—Definitions. from domestic offices. Such reservable liabilities are known as "Eurocurrency liabilities." The Board is now amending its Regulation D to reduce the reserve 2. A nonpersonal time deposit with a stated maturity requirement on short-term nonpersonal time deposits of one and one-half years or more may be treated as and Eurocurrency liabilities from the current level of having an original maturity of one and one-half years 3 percent to zero percent. These reductions will be or more only if it is subject to the minimum penalty phased in over two successive reserve maintenance described in section 204.2(f)(3). periods for depository institutions that report their deposits weekly under Regulation D, and will be 3. In section 204.3, the word "and" is added after the effective at the beginning of the next quarterly period semicolon in paragraph (a)(3)(i)(A); the colon and the for quarterly reporters. word "and" are removed at the end of paragraph Reserve requirements on transaction accounts (a)(3)(i)(B) and a period is added; and paragraph (generally 12 percent) and nonpersonal time deposits (a)(3)(i)(C) is removed. with original maturities or notice periods of one and one-half years or more (zero percent) are not being 4. In section 204.3, paragraph (c)(2) is revised to read changed. Reporting requirements and regulatory def- as follows: initions also are not being changed. Effective December 13, 1990,1 12 C.F.R. Part 204 is amended as follows: 1. Compliance dates: (These compliance dates do not affect the compliance dates for amendments to Regulation D concerning the low will be reduced from 1 1/2 percent to zero percent effective with the reserve tranche and the deposit cutoff as announced at 55 Federal weekly reporter reserve maintenance period that begins on Thursday, Register 49,992 (1990). However, the amendments made by the Board December 27, 1990. For quarterly reporting institutions, reserves on in this action to 12 C.F.R. 204.9(a) (1) supersede the amendments these liabilities will be reduced to zero percent effective January 17, made by the Board to that section on November 28, 1990 and 1991, the beginning of the next quarterly period. (Required reserves announced at 55 Federal Register 49,992 (1990). Reserves on short- on nonpersonal time deposits and Eurocurrency liabilities for quarterm nonpersonal time deposits and Eurocurrency liabilities for terly reporters total on the order of $450 million.) The Board believes weekly reporting depository institutions will be reduced from 3 that this time period will be sufficient to provide the desired stimulus percent to 1 1/2 percent effective with the weekly reporter reserve promptly while minimizing the disruption to the financial markets maintenance period that begins on Thursday, December 13, 1990, and resulting from the reduction. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

106 Federal Reserve Bulletin • February 1991 Section 204.3—Computation and maintenance. dividends and will bring calculation of dividend payment capacity more closely into line with current regulatory reporting standards and generally accepted accounting principles (GAAP). The rule defines the (c) Computation of required reserves for institutions terms used in two statutory provisions that impose that report on a weekly basis. capital and current earnings restrictions on the pay- (!) * * * ment of dividends by national banks. These provi- (2) A reserve balance shall be maintained during a sions, 12 U.S.C. §§ 56 and 60, are made applicable to given maintenance period based on the daily averstate member banks by section 9 of the Federal age net transaction accounts held by the deposi- Reserve Act. tory institutions during the computation period Section 208.19(a) of this regulation will be effective that began immediately prior to the beginning of January 25, 1991. Section 208.19(b) will be effective the maintenance period. December 20, 1990, although a state member bank may choose to apply the paragraph retroactively (see transition provisions in section 208.19(b)(5)), 5. Section 204.9(a)(1), as revised in a final rule docu- 12 C.F.R. Parts 208 and 250 are amended as follows: ment published on December 4, 1990 (55 Federal Register 49,992 (1990)), is hereby withdrawn. Section Part 208—Membership of State Banking 204.9(a) is now revised to read as follows: Institutions in the Federal Reserve System Section 204.9—Reserve requirement ratios. 1. The authority citation for Part 208 continues to read as follows: (a)(1) Reserve percentages. The following reserve ratios are prescribed for all depository institutions, Authority: Sections 9, 11(a), 11(c), 19, 21, 25, and 26(a) Edge and Agreement Corporations, and United of the Federal Reserve Act, as amended (12 U.S.C. States branches and agencies of foreign banks: 321-338, 248(a), 248(c), 461, 481-486, 601, and 611, respectively); sections 4 and 130) of the Federal Deposit Insurance Act, as amended (12 U.S.C. 1814 and 1823(j), respectively); section 7(a) of the International Category Reserve Requirement Banking Act of 1978 (12 U.S.C. 3105); sections 907- 910 of the International Lending Supervision Act of Net transaction accounts1 1983 (12 U.S.C. 3906 - 3909); sections 2, 12(b), 12(g), $0 to $41.1 million 3 percent of amount over $41.1 million $1,233,000 plus 12 percent of 12(i), 15B(c)(5), 17, 17A, and 23 of the Securities amount over $41.1 million Exchange Act of 1934 (15 U.S.C. 78b, 781(b), 781(g), Nonpersonal time deposits... 0 percent Eurocurrency liabilities 0 percent 781(i), 78o-4(c)(5), 78q, 78q-l, and 78w, respectively); section 5155 of the Revised Statutes (12 U.S.C. 36) as 1. Dollar amounts do not reflect the adjustment to be made by the amended by the McFadden Act of 1927; and sections next paragraph. 1101-1122 of the Financial Institutions Reform, Recov- (2) Exemption from reserve requirements. Each ery, and Enforcement Act of 1989, 12 U.S.C. 3310 and depository institution, Edge or agreement corpora- 3331-3351). tion, and U.S. branch or agency of a foreign bank is subject to a zero percent reserve requirements on an 2. Section 208.19 is added to read as follows: amount of its transaction accounts subject to the low reserve tranche in paragraph (a)(1) not in excess of Section 208.19—Payment of dividends. $3.4 million determined in accordance with section 204.3(a)(3) of this part. (a) Capital limitations on payment of dividends. No state member bank shall, during the time it continues its banking operations, withdraw, or permit to be withdrawn, either in the form of dividends or other- FINAL RULE—AMENDMENT TO REGULATION H wise, any portion of its capital. If losses have at any time been sustained by a state member bank that equal The Board of Governors is amending 12 C.F.R. Parts or exceed its undivided profits then on hand, no 208 and 250, its Regulation H (Membership in the dividend shall be paid. No dividend shall be paid by a Federal Reserve System), that will clarify the circum- state member bank while it continues its banking stances under which state member banks may pay operations, to an amount greater than its net profits Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 107 then on hand, deducting therefrom its losses and bad any case, the bank should have a plan of collecdebts. tion setting forth the reasons for the selected (1) Exceptions. Exceptions to the limitations con- method of collection, the responsibilities of the tained in this paragraph (a) may be made only with bank and the borrower, and the expected date of the prior approval of the Board and of at least repayment of the debt or its restoration to current two-thirds of the shares of each class of stock status. outstanding. (iv) Debts of bankrupt or deceased debtors. A (2) Dividends on common and preferred stock. The claim duly filed against the estate of a bankrupt or provisions of this paragraph (a) shall apply to the deceased debtor is considered as being in the payment of dividends on both common and pre- process of collection. The obligation is well seferred stock. cured if it meets the criteria set forth in paragraph (3) "Bad debt." Under paragraph (a), bad debts 3(a)(ii) of this section or if the claim of the bank must be deducted from the net profits then on hand against the estate has been duly filed and the in computing funds available for the payment of statutory period for filing has expired and the dividends. The term "bad debt" includes matured assets of the estate are adequate to discharge all obligations due a bank on which the interest is past obligations in full. due and unpaid for six months unless the debts are (v) Documentation. The bank must maintain in its well secured and in the process of collection. Obli- files documentation to support its evaluation of gations include every type of indebtedness owed to the obligation. In addition, the bank must retain, the bank, including, for example, loans, investment at a minimum, monthly progress reports on its securities, time deposits in other depository institu- collection efforts, noting and explaining any devitions, and leases. The six-month period of default ation from the collection plan. may begin at any time, regardless of when the debt (4) "Undivided profits then on hand." For the matures. purpose of this section, the terms "undivided profits (i) Matured debt. Whether a debt has matured for then on hand" and "net profits then on hand" shall the purposes of this subsection usually will be have the same meaning, and shall be referred to determined by applicable contract law. Generally, herein as "undivided profits then on hand." a debt is matured when all or a part of the (i) Allowance for loan and lease losses. When principal is due and payable as a result of demand, calculating the amount of dividends a bank can arrival of the stated maturity date, or acceleration pay under 12 U.S.C. 56 and this paragraph, the by contract or by operation of law. Nevertheless, bank may not add the balance in its allowance for any demand debt on which the payment of inter- loan and lease losses to its undivided profits for est is six months past due will be considered the purpose of determining undivided profits then matured even though payment on the debt has not on hand. The terms "allowance for loan and lease been demanded. Installment loans on which any losses" and "undivided profits" shall have the payment is six months past due will be considered same meaning as set forth in the instructions for matured even though acceleration of the total debt the Reports of Condition and Income. may not have occurred. (ii) Bad debts. When deducting its bad debts from (ii) Well-secured debt. A debt is well secured if it its undivided profits then on hand, a bank shall is secured by collateral in the form of liens on, or first subtract the sum of its bad debts from the pledges of, real or personal property, including balance of its allowance for loan and lease losses securities, having realizable value sufficient to account. If the sum of a bank's bad debts is discharge the debt in full, or by the guaranty of a greater than its allowance for loan and lease financially responsible party. If a loan that would losses, the excess bad debt shall then be deducted otherwise be considered a bad debt is partially from the bank's undivided profits then on hand. secured, that portion not properly secured will be (iii) Surplus surplus. State member banks are considered a bad debt. required to comply with state law provisions (iii) Debt in process of collection. A debt is in the concerning the maintenance of surplus funds in process of collection if collection of the debt is addition to common capital. To the extent a bank proceeding in due course, either through legal has capital surplus in excess of that required action, including judgment enforcement proce- under applicable state law, the bank has "surplus dures, or, in appropriate circumstances, through surplus." Only that portion of the surplus surplus collection efforts not involving legal action which that meets the following conditions may be transare reasonably expected to result in repayment of ferred to the undivided profits account and be the debt or in its restoration to current status. In available for the payment of dividends: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

108 Federal Reserve Bulletin • February 1991 (A) The bank's board of directors approves the (5) Effective date and transition provisions. transfer of funds from capital surplus to undi- (i) For the purpose of computing "net profits" vided profits; and pursuant to 12 U.S.C. 60, a state member bank (B) The transfer has been approved by the must apply paragraph (b)(2) of this section no later Board. The bank must be able to demonstrate than January 1, 1991. A bank may elect to use this to the Board that the portion of the surplus paragraph (b)(2) of this section to calculate net surplus to be transferred came from the earn- profits for 1990, if it applies this provision on a full ings of prior periods, excluding earnings trans- calendar year to date basis. ferred as a result of stock dividends. Requests (ii) Whether a bank chooses to use paragraph for Board approval shall be submitted to the (b)(2) of this section beginning as of January 1, appropriate Federal Reserve Bank. The bank 1990 or 1991, it may elect to apply the paragraph may consider the transfer to be approved if the (b)(2) to recalculate retained net profits for one or Board or the Reserve Bank does not notify the both of the prior two years. bank within thirty days after the Reserve (iii) Once a bank has elected to calculate net Bank's receipt of the notice that the transfer has profits or retained net profits for a particular year been disapproved or that it is subject to con- applying the provisions of paragraph (b)(2) of this tinuing consideration. section, retained net profits and net profits for all (b) Earnings limitations on payment of dividends. A subsequent periods in the calculation must also be state member bank may not pay a dividend if the total calculated using paragraph (b)(2) of this section. If of all dividends declared by the bank in any calendar a state member bank has elected to use paragraph year exceeds the total of its net profits for that year (b)(2) of this section for a particular year, the bank combined with its retained net profits of the preceding may not change the method of calculation used for two calendar years, less any required transfers to that year during subsequent periods. surplus or to a fund for the retirement of any preferred stock, unless the bank has received the prior approval Part 250—Miscellaneous Interpretations of the Board for the dividend under paragraph (b)(3) of this section. 1. The authority citation for Part 250 continues to read (1) Dividends on common and preferred stock. The as follows: provisions of this paragraph (b) apply to the payment of dividends on both preferred and common stock. Authority: 12 U.S.C. 248(i). (2) "Netprofits." "Net profits" shall be equal to the net income or loss as reported by a state member 2. Sections 250.101, 250.102, and 250.103 are redesigbank in its Reports of Condition and Income. When nated as sections 208.125, 208.126, and 208.127 in Part computing its "net profits" under this section, a 208. bank should not add its provisions for loan and lease losses to, nor deduct net charge offs from, its 3. Section 250.104 is removed. reported net income. (3) Retained net profits.Retained net profits of any period shall be equal to the net income or loss as ORDERS ISSUED UNDER BANK HOLDING reported in the Reports of Condition and Income COMPANY ACT less any common or preferred stock dividends declared or otherwise charged to the undivided profits Orders Issued Under Section 3 of the Bank of the period for which retained net profits are Holding Company Act computed. (4) Approval of dividends. A bank must request and Eurocapital, S.A. receive the approval of the Board before declaring a Madrid, Spain dividend if the amount of all dividends (common and preferred), including the proposed dividend, declared Banco Europeo de Finanzas, S.A. by the bank in any calendar year exceeds the total of Madrid, Spain the bank's net profits of that year to date combined with its retained net profits of the preceding two Order Approving the Formation of Bank Holding calendar years, less any required transfers to surplus Companies or a fund for the retirement of any preferred stock. Requests for the Board's approval shall be submitted Eurocapital, S.A., ("Eurocapital") and its subsidiary, to the appropriate Federal Reserve Bank. Banco Europeo de Finanzas, S.A., ("BEF") both of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 109 Madrid, Spain, have applied for the Board's approval Based on the foregoing and all of the facts of record, under section 3(a)(1) of the Bank Holding Company the Board has determined that these applications Act ("BHC Act") (12 U.S.C. § 1842(a)(1)) to acquire should be, and hereby are, approved. The acquisition 65 percent of the voting shares of First Community of Bank shall not be consummated before the thirtieth Trust Company, Inc., San Juan, Puerto Rico calendar day following the effective date of this Order, ("Bank"), and thereby become bank holding compa- or later than three months after the effective date of nies for purposes of the BHC Act. this Order, unless such period is extended for good Notice of the applications, affording interested par- cause by the Board or the Federal Reserve Bank of ties an opportunity to submit comments, has been New York, acting pursuant to delegated authority. given in accordance with section 3(b) of the BHC Act By order of the Board of Governors, effective (55 Federal Register 39,323 (1990)). The time for filing December 17, 1990. comments has expired, and the Board has considered the applications and all comments received in light of Voting for this action: Chairman Greenspan and Governors the factors set forth in section 3(c) of the BHC Act Seger, Angell, Kelley, La Ware, and Mullins. (12 U.S.C. § 1842(c)). Eurocapital is a Spanish banking organization with JENNIFER J. JOHNSON Associate Secretary of the Board $250.3 million in assets. BEF, with assets of $224.0 million, is the 67th largest bank in Spain. BEF and its subsidiaries operate only in Spain. Eurocapital's only Mitsui Manufacturers Bank other subsidiary, Euroges Factoring, S.A., is a non- Los Angeles, California banking company that engages in a variety of lending and advisory activities in Portugal, and does not take Order for Public Meeting deposits. The Board has determined that Eurocapital and BEF meet the requirements of section 211.23(b) of On March 28, 1990, the Board approved an application Regulation K for the exemptions to the nonbanking by The Mitsui Bank, Limited, Tokyo, Japan, and The prohibitions of the BHC Act provided to qualifying Taiyo Kobe Bank, Limited, Kobe, Japan, to acquire foreign banking organizations. 12 C.F.R. 211.23. Taiyo Kobe Bank and Trust Company, New York, Bank, with total consolidated assets of $20.7 mil- New York ("TKBTC"), as a nonbank trust company lion, is the smallest of 18 commercial banking organi- under section 4 of the Bank Holding Company Act zations in the San Juan, Puerto Rico market.1 This ("BHC Act").1 The Mitsui Order noted, however, that acquisition constitutes the first entry into the United Mitsui Manufacturers Bank, Los Angeles, California States by Eurocapital and BEF. In view of the fact that ("MMB"),2 had not implemented in all respects the neither Eurocapital nor BEF engages in any activities type of Community Reinvestment Act ("CRA") proin the United States and based upon the facts of gram outlined in the Joint Agency Policy Statement record, the Board concludes that the proposed trans- regarding the CRA,3 and that there were significant action will have no adverse effect on competition, and issues raised regarding the adequacy of MMB's CRA will not increase the concentration of resources in any performance. relevant market. Accordingly, the Board stated its intent to hold a Section 3(c) of the BHC Act requires in every case public meeting on MMB's CRA performance in conthat the Board consider the financial resources of the nection with Mitsui Taiyo Kobe's application under applicant organization and the banking organization to section 3 of the BHC Act to convert TKBTC back into be acquired. The financial and managerial resources a bank after January 1, 1991 (the "TKBTC applicaand future prospects of Eurocapital and BEF and their tion"),4 unless the record developed on that application subsidiaries are generally satisfactory and consistent over the next several months, in the Board's view, with approval of this application. Considerations re- resolved the issues regarding MMB's CRA perforlating to the convenience and needs of the communi- mance. ties to be served are consistent with approval of these applications. 1. The Mitsui Bank, Limited, 76 Federal Reserve Bulletin 381 (1990)(hereinafter, "Mitsui Order"). 2. MMB is the United States subsidiary bank of The Mitsui Taiyo 1. The San Juan banking market is approximated by the San Kobe Bank, Limited, Tokyo, Japan ("Mitsui Taiyo Kobe"), the Juan-Caguas Consolidated Metropolitan Statistical Area, with the successor by merger of The Mitsui Bank and The Taiyo Kobe Bank. addition of the Arecibo MSA and the following towns: Aibonito, 3. 54 Federal Register 13,742 (1989). Arroyo, Barranquitas, Ceiba, Ciales, Comerio, Guayama, Jayuya, 4. On January 1, 1991, the interstate banking laws of New York and Lares, Maunabo, Morovis, Naguabo, Orocovis, Patillas, Salinas, California will permit commercial bank acquisitions by bank holding Utuado, and Yabucoa. companies located in these states. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

110 Federal Reserve Bulletin • February 1991 As required under the Mitsui Order, TKBTC has It is further ordered that the Presiding Officer shall completed its divestiture of loans and deposits and has have the authority and discretion in conducting the represented that it is in compliance with the activities public meeting and prescribing all procedures incidenlimitations on trust companies contained in section tal thereto to ensure that the public meeting proceeds 2(c)(2)(D) of the BHC Act. Accordingly, the condi- in a fair and orderly manner, including providing for tions stated by the Board for processing the TKBTC filing deadlines for written submissions and proceapplication have been completed and the time frame dures for scheduling persons to participate at the for resolving the CRA issues discussed in the Mitsui public meeting. Order has been fulfilled. By order of the Board of Governors, effective Under the Board's policy statement regarding infor- December 14, 1990. mal meetings in section 262.25(d) of the Board's Rules, the Board may convene a public meeting to elicit Voting for this action: Chairman Greenspan and Governors information, to clarify factual issues related to an Seger, Angell, Kelley, LaWare, and Mullins. application, and to provide an opportunity for interested individuals to provide testimony. 12 C.F.R. JENNIFER J. JOHNSON Associate Secretary of the Board 262.25(d). Having considered the record on this matter, the Board has determined that it is appropriate to hold a public meeting on the issues regarding MMB's Norwest Corporation performance under the CRA in connection with the Minneapolis, Minnesota TKBTC application.5 Accordingly, it is hereby ordered that a public Order Approving the Acquisition of a Bank Holding meeting be held on the issues regarding MMB's record Company of performance under the CRA in connection with the TKBTC application. Norwest Corporation, Minneapolis, Minnesota ("Nor- It is further ordered that the Director of the Division west"), a bank holding company within the meaning of of Consumer and Community Affairs be designated as the Bank Holding Company Act ("BHC Act"), has the Presiding Officer of the public meeting. applied under section 3 of the BHC Act (12 U.S.C. It is further ordered that all persons wishing to give § 1842) to acquire Chalfen Bankshares, Inc. ("Chaltestimony at the public meeting shall file with William fen"), and thereby indirectly acquire First National W. Wiles, Secretary of the Board, Board of Governors Bank in Anoka ("Bank"), both in Anoka, Minnesota. of the Federal Reserve System, 20th Street and Con- Notice of the application, affording interested perstitution Avenue, N.W., Washington, D.C. 20551, a sons an opportunity to submit comments, has been written request to appear containing the following duly published (55 Federal Register 29,100 (1990)). information: The time for filing comments has expired, and the (i) the name and address of the person wishing to Board has considered the application and all comappear; ments received in light of the factors set forth in (ii) a statement of the expected nature of the section 3(c) of the BHC Act. testimony; and Norwest, with total consolidated assets of $26.8 (iii) the amount of time at the public meeting the billion, operates 34 banking subsidiaries located in person is requesting. Minnesota, Wisconsin, Illinois, Indiana, Arizona, Iowa, Montana, Nebraska, North Dakota, and South All information must be received by the Secretary of Dakota.1 Norwest is the second largest banking organithe Board on or before January 15, 1991. zation in Minnesota, controlling approximately $10.1 It is further ordered that, on the basis of these billion in deposits in Minnesota, representing 24.0 requests and taking into account the interests of the percent of the total deposits in commercial banking persons requesting to appear, the Presiding Officer shall organizations in the state. Chalfen is the 13th largest schedule times for persons wishing to testify at a public banking organization in Minnesota, controlling approxmeeting that will commence on a date and at an imately $183.9 million in deposits in Minnesota, repreappropriate location in California to be announced senting 0.4 percent of the total deposits in commercial subsequently. banking organizations in the state. Upon consummation of the proposed acquisition, Norwest would remain the 5. Submissions on MMB's performance under the CRA at the public meeting may also be relevant to the Board's consideration of any 1. Asset data are as of June 30, 1990. State banking data are as of section 3 application involving MMB. December 31, 1989. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 111 second largest commercial banking organization in points to 2041 upon consummation of this proposal. Minnesota, controlling approximately $10.3 billion in The two largest banking organizations in the Minnedeposits in Minnesota, representing 24.5 percent of the apolis-St. Paul banking market together control approxtotal deposits in commercial banking organizations in imately 61.1 percent of total thrift-adjusted market the state. Consummation of the proposal would not deposits. The third largest depository institution in the result in significantly adverse effects on the concentra- market controls approximately 8.3 percent of total tion of banking resources in Minnesota. thrift-adjusted market deposits. During the past two Both Norwest and Chalfen compete directly in the years, the number of commercial banks in the market Minneapolis-St. Paul banking market.2 Norwest is the has declined, although there are still over 100 bank and second largest commercial banking organization in the thrift competitors in the market. market, controlling approximately $7.8 billion in depos- The Board has previously indicated that, in the its, representing 29.0 percent of the total deposits in context of the structure of the Minneapolis-St. Paul commercial banking organizations in the market.3 Chal- banking market, the acquisition of any depository fen is the 12th largest commercial banking organization institution in the market by either of the two largest in the market, controlling approximately $183.9 million firms in the market requires close scrutiny. The Board in deposits, representing 0.7 percent of the total depos- has indicated that, under the conditions in the Minneits in commercial banking organizations in the market. apolis-St. Paul banking market, the acquisition by The Minneapolis-St. Paul banking market is highly these two banking organizations of a series of deposconcentrated.4 Upon consummation of this proposal, itory organizations with relatively small market shares Norwest would remain the second largest commercial could, on a cumulative basis, lead to significant antibanking organization in the market, controlling approx- competitive effects. Since 1989, Norwest has acquired imately $8.0 billion in deposits, representing 29.7 per- a banking organization and a thrift institution that cent of the total deposits in commercial banking orga- competed with Norwest in this market.6 nizations in the market. The Herfindahl-Hirschman The Board recognizes in this case that Chalfen is the Index ("HHI") would increase by 40 points to 2284. If 12th largest banking organization in the Minneapolis-St. 50 percent of the deposits controlled by thrift institu- Paul banking market and controls less than one percent tions were included in the calculation of market con- of the deposits in the market. As noted above, consumcentration, Norwest and Chalfen would control 27.3 mation of this proposal would cause the thrift-adjusted percent and 0.6 percent of total thrift-adjusted market HHI for this market to increase by approximately 35 deposits, respectively.5 The HHI would increase by 35 points. Because of changes in the Minneapolis-St. Paul banking market since Norwest's 1989 acquisition, the thrift-adjusted HHI following consummation of the proposed transaction will increase by only 36 points to 2. The Minneapolis-St. Paul banking market is approximated by Anoka, Hennepin, Ramsey, Washington, Carver, Scott and Dakota 2041 in comparison to the HHI prior to Norwest's 1989 Counties; Lent, Chisago Lake, Shafer, Wyoming and Franconia acquisition. This increase is less than the level that would Townships in Chisago County; Blue Hill, Baldwin, Orrock, Livonia likely give rise to a challenge of a bank acquisition on and Big Lake Townships and the City of Elk River in Sherburne County; Monticello, Otsego, Buffalo, Frankfort, Rockford and Fran- competitive grounds under the Department of Justice klin Townships in Wright County; Lanesburgh Township in Le Sueur Merger Guidelines. This calculation takes into account County, Minnesota; and the Town of Hudson in St. Croix County, changes in the market share of other competitors in the Wisconsin. 3. Market share data are as of June 30, 1990, and reflect all Minneapolis-St. Paul banking market that affect the conacquisitions in the Minneapolis-St. Paul banking market that the centration level and the HHI of the market. Board has approved. See Norwest Corporation, 76 Federal Reserve Bulletin 873 (1990); First Bank Systems, 76 Federal Reserve Bulletin In light of all the facts in this case, including the 1051 (1990). number of competitors remaining in the market, the 4. Under the revised Department of Justice Merger Guidelines, 49 Federal Register 26,823 (June 2, 1984), any market in which the size and location of Chalfen, other recent events in the post-merger HHI is over 1800 is considered highly concentrated, and market and other facts of record, the Board does not the Justice Department is likely to challenge a merger that increases believe that the effect of the proposed acquisition on the HHI by more than 50 points unless other factors indicate that the merger will not substantially lessen competition. The Justice Depart- competition in the Minneapolis-St. Paul banking marment has informed the Board that a bank merger or acquisition ket, viewed either as an individual acquisition or in the generally will not be challenged (in the absence of other factors indicating anticompetitive effects) unless the post-merger HHI is at least 1800 and the merger increases the HHI by at least 200 points. The Justice Department has stated that the higher than normal HHI Bulletin 386 (1989); CB&T Bancshares, Inc., 75 Federal Reserve thresholds for screening bank mergers for anticompetitive effects Bulletin 381 (1989); National City Corporation, 70 Federal Reserve implicitly recognizes the competitive effects of limited-purpose lend- Bulletin 743 (1984). The Board believes that the record in this case ers and other non-depository financial entities. supports inclusion of thrift institutions on a 50 percent weighted basis 5. The Board previously has indicated that thrift institutions have in the calculation of market share in this market. become, or have the potential to become, major competitors of 6. See Norwest Corporation, 76 Federal Reserve Bulletin 873 commercial banks. Midwest Financial Group, 75 Federal Reserve (1990); Norwest Corporation, 75 Federal Reserve Bulletin 399 (1989). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

112 Federal Reserve Bulletin • February 1991 context of other recent acquisitions by Norwest, would The Board has carefully reviewed the CRA perforbe so significantly adverse as to warrant denial of this mance record of Norwest, Chalfen, and their bank proposal. The Board continues to believe, however, subsidiaries, as well as the comments of Protestant that acquisitions by the leading firms in this market and Norwest's response to those comments, in light of require close scrutiny, and will consider whether a the CRA, the Board's regulations, and the jointly series of acquisitions of depository institutions in this issued Statement of the Federal Financial Supervisory market with relatively small market shares could, on a Agencies Regarding the Community Reinvestment Act cumulative basis, lead to significant anticompetitive ("Agency CRA Statement")^ The Agency CRA effects in this market. Statement provides guidance regarding the types of In considering the convenience and needs of the policies and procedures that the supervisory agencies communities to be served, the Board has taken into believe financial institutions should have in place in account the record of the subsidiary banks of both order to fulfill their responsibilities under the CRA on Norwest and Chalfen under the Community Reinvest- an ongoing basis, and the procedures that the superment Act (12 U.S.C. § 2901 et seq.) ("CRA"). The visory agencies will use during the application process CRA requires the federal financial supervisory agen- to review an institution's CRA compliance and perforcies to encourage financial institutions to help meet the mance. The Agency CRA Statement also suggests that credit needs of the local communities in which they decisions by agencies to allow financial institutions to operate consistent with the safe and sound operation expand will be made pursuant to an analysis of the of such institutions. To accomplish this end, the CRA institution's overall CRA performance, and will be requires the appropriate federal supervisory authority based on the actual record of performance of the to "assess an institution's record of meeting the credit institution.10 needs of its entire community, including low- and Initially, the Board notes that Norwest's subsidiary moderate-income neighborhoods, consistent with the banks, including NBM, and Chalfen's subsidiary safe and sound operation of the institution," and to banks have received satisfactory ratings from their take this record into account in its evaluation of bank primary regulators in the most recent examinations of holding company applications. their CRA performance. The Agency CRA Statement In this regard, the Board has received comments provides that, although CRA examination reports do from the Amalgamated Clothing and Textile Workers not provide conclusive evidence of an institution's Union ("Protestant") critical of the CRA performance CRA record, these reports will be given great weight in of Norwest.7 Protestant alleges that the record of per- the applications process.11 formance by Norwest and its lead bank, Norwest Bank The record in this application indicates that Nor- Minnesota, N.A., Minneapolis, Minnesota ("NBM"), west's subsidiary banks have delineated reasonable demonstrates a failure to meet the credit needs of low- local communities that do not exclude low- and modand moderate-income, minority, and farm communities, erate-income neighborhoods.12 NBM's delineated and a failure to comply with other aspects of the CRA.8 community includes the seven-county Minneapolis- St. Paul metropolitan area and does not exclude any low- and moderate-income neighborhoods in this area. Duluth's delineated community includes Duluth and 7. The Board also has considered additional comments filed on this application after the close of the comment period which raise substan- Hermantown, and surrounding area within a 15-mile tially similar issues. Under the Board's rules, the Board may in its radius of the bank's headquarters, including low- and discretion take into consideration the substance of such comments. 12 moderate-income neighborhoods. Norwest's Home C.F.R. 262.3(e). 8. Protestant specifically alleges that Norwest has failed to meet the Mortgage Disclosure Act ("HMDA") data further credit needs of: Minnesota's low- and moderate-income communities indicate that Norwest's loan policies do not discrimiin Minneapolis-St. Paul and Duluth; the predominately minority nate against low- and moderate-income communities communities in Minneapolis-St. Paul; and Minnesota farming communities. Protestant asserts that Norwest has engaged in discriminatory in Minneapolis-St. Paul or Duluth.13 lending practices, reduced rural lending and increased farm foreclosures. Protestant also criticizes other aspects of Norwest's CRA performance, including: insufficient participation in multifamily housing programs; an insufficient community marketing initiative and the 9. 54 Federal Register 13,742 (1989). production of promotional materials that discourage farm and minor- 10. Id. ity credit applicants; failure to meet with community groups; and 11. Id. at 13,745. operation of branches with inconvenient business hours. Alleged 12. There is no evidence of record that Norwest's ability to meet the technical violations of the CRA include Norwest's failure to: delineate credit needs of its local community has been restricted because of a reasonable local communities, include adverse comments in public large amount of investments outside the midwestern region. In addicomment files, and produce requested home mortgage data. In a tion, recent CRA examinations have not revealed any evidence of general sense, Protestant alleges that Norwest uses capital raised racially discriminatory lending practices. locally for investments made outside the midwestern region and that 13. For example, in 1989 Norwest increased the number of its Norwest inadequately monitors CRA compliance through its board of mortgage loans from its 1988 lending level, resulting in (taking into directors. account the number of owner-occupied units in those areas) 15.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 113 The products and services that help meet the credit delineation and other requirements) and monitors needs of low- and moderate-income communities that NBM's performance.19 Norwest provides include mortgage and home im- The Board believes that, on balance, the CRA provement loans, a low-cost checking account, and records of Norwest and NBM are consistent with direct small business loans.14 In addition, Norwest approval of this application. The Board expects Normarkets its credit products and services by radio, west to continue its record of improvement under the television and newspapers, with its branches under- CRA and the Board will consider the progress of taking more targeted advertising in neighborhood pub- Norwest and NBM in future applications to expand lications.15 their deposit-taking operations. For the foregoing rea- Norwest also participates in various governmental- sons, and based upon the overall CRA record of ly-insured and assisted programs that benefit low- and Norwest and its subsidiary banks and other facts of moderate-income areas. The Board notes that Nor- record, the Board concludes that convenience and west's subsidiaries continue to make FmHA-guaran- needs considerations, including the records of perforteed loans and reduced rate loans to farmers.16 To help mance under the CRA of Norwest and Chalfen, are meet the housing needs of low- and moderate-income consistent with approval of this application.20 The families, Norwest has invested in the Riverside Plaza, Board also concludes that the financial and managerial a rental housing renovation project in Minneapolis. resources and future prospects of Norwest, Chalfen Norwest has also made energy, home improvement and their subsidiaries are consistent with approval of and home purchase loans through the Minnesota this application. Housing Finance Agency and has participated in mul- Based on all the foregoing and other facts of tifamily housing initiatives, including city-sponsored record, the Board has determined that the applicainitiatives, through the Minneapolis Community De- tion should be, and hereby is, approved. The transvelopment Agency. action shall not be consummated before the thirtieth Norwest has implemented a Community Marketing calendar day following the effective date of this Initiative ("CMI") that requires each subsidiary bank Order, or later than three months after the effective to develop an outreach program to provide for an date of this Order, unless such period is extended for ongoing assessment of community financial service good cause by the Board or by the Federal Reserve needs.17 NBM monitors compliance with the CRA Bank of Minneapolis, acting pursuant to delegated through its Community Affairs Officer who reports to authority. the NBM's board quarterly on CRA activities and By order of the Board of Governors, effective related issues.18 NBM's board reviews its CRA plan, December 27, 1990. considers input from community advisory groups, ensures compliance with the technical requirements of Voting for this action: Governors Seger, Kelley, La Ware, the CRA (including the CRA statement, community and Mullins. Voting against this action: Governor Angell. Absent and not voting: Chairman Greenspan. JENNIFER J. JOHNSON Associate Secretary of the Board percent of all Norwest mortgage lending occurring in low- and moderate-income areas in Minneapolis-St. Paul. Approximately 8 percent of the owner-occupied housing stock in the Minneapolis-St. Paul area is located in low- and moderate-income areas. Similarly, 9.1 percent of all Norwest mortgage lending in Duluth in 1989 occurred in low- and moderate-income areas, where approximately 10 percent of the owner-occupied housing stock in the Duluth area is located in lowand moderate-income areas. 19. NBM has indicated to the Office of the Comptroller of the 14. Norwest's Community Home Ownership Program is offered Currency that it will correct any problems regarding comments through Norwest Mortgage, Inc., a nonbanking subsidiary that han- maintained in its public files. dles all of Norwest's mortgage lending. Norwest also offers Startline 20. Protestant and other commenters have requested that the Board as a low-cost checking account. Norwest's inner city branch locations hold a public hearing or meeting to assess further facts surrounding offer a full range of services and the business hours for its branch Norwest's CRA performance. Generally under the Board's rules, the banks generally are comparable for the Minneapolis-St. Paul area. Board may, in its discretion, hold a public hearing or meeting on an 15. Norwest has directed a minority media advertisement campaign application to clarify factual issues related to the application and to to Minneapolis-St. Paul inner city residents and there is no evidence provide an opportunity for testimony, if appropriate. 12 U.S.C. that Norwest discourages credit applications from minority or rural §§ 262.3(e) and 262.25(d). applicants. The Board has carefully considered these requests. In the Board's 16. For example, NBM originated $10 million in small farm loans in view, the parties have had ample opportunity to present submissions, 1989. See also Norwest Corporation, 74 Federal Reserve Bulletin 568 and Protestant has submitted substantial written comments that have (1988). been considered by the Board. In light of these facts, the Board has 17. The CMI states that Norwest's board of directors is responsible determined that a public meeting or hearing is not necessary to clarify for reviewing the CRA plans of its subsidiary banks. the factual record in this application, or otherwise warranted in this 18. The Community Affairs Officer also attends bank officer meet- case. Accordingly, the requests for a public meeting or hearing on this ings to provide training on CRA requirements and objectives. application are hereby denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

114 Federal Reserve Bulletin • February 1991 Norwest Corporation Minnesota, Wisconsin, Illinois, Indiana, Arizona, Minneapolis, Minnesota Iowa, Montana, Nebraska, North Dakota, and South Dakota.4 Norwest is the second largest commercial Order Approving Acquisition of a Bank Holding banking organization in Minnesota, controlling ap- Company and its Bank Subsidiaries proximately $13.6 billion in commercial bank deposits in Minnesota, representing 26.0 percent of total depos- Norwest Corporation, Minneapolis, Minnesota ("Nor- its in commercial banking organizations in the state. west"), a bank holding company within the meaning of WNB, the second largest commercial banking organithe Bank Holding Company Act ("BHC Act"), has zation in Wyoming, controls deposits of approxiapplied under section 3(a)(3) of the BHC Act mately $447.4 million, representing 10.4 percent of (12 U.S.C. § 1842(a)(3)) to acquire all of the voting total deposits in commercial banking organizations in shares of Wyoming National Bancorporation, Casper, the state. Wyoming ("WNB"), and thereby to indirectly acquire Norwest and WNB do not compete directly in any its bank subsidiaries, all in Wyoming: Wyoming Na- banking market, and numerous potential entrants into tional Bank Casper, Casper; Wyoming National Bank the relevant banking markets exist. Based on these Cheyenne, Cheyenne; Wyoming National Bank Gil- and all of the other facts of record, the Board believes lette, Gillette; Wyoming National Bank Kemmerer, that consummation of the proposal would not have a Kemmerer; Wyoming National Bank Lovell, Lovell; significantly adverse effect upon competition or the and Wyoming National Bank Wheatland, Wheatland. concentration of banking resources in any relevant Notice of the application, affording interested per- banking market. sons an opportunity to submit comments, has been The financial and managerial resources and future published (55 Federal Register 23,805 (1990)). The prospects of Norwest and WNB and their subsidiaries time for filing comments has expired, and the Board are consistent with approval. Considerations relating has considered the application and all comments re- to the convenience and needs of the communities to be ceived in light of the factors set forth in section 3(c) of served are also consistent with approval of this applithe BHC Act. cation.5 Section 3(d) of the BHC Act (12 U.S.C. § 1842(d)) Accordingly, based on the foregoing and other ("Douglas Amendment") prohibits the Board from facts of record, the Board has determined that the approving an application by a bank holding company application should be, and hereby is, approved to acquire control of any bank located outside of the subject to obtaining the required approval of the holding company's home state, unless such acquisition appropriate state banking agency. The proposal shall is "specifically authorized by the statute laws of the not be consummated before the thirtieth calendar day State in which [the] bank is located, by language to following the effective date of this Order, or later that effect and not merely by implication."1 than three months following the effective date of Wyoming law authorizes financial institutions lo- this Order, unless such period is extended for good cated in any state to acquire Wyoming financial insti- cause by the Board or by the Federal Reserve tutions that have been chartered to do business in Bank of Minneapolis, acting pursuant to delegated Wyoming for at least three years.2 WNB and all of its authority. bank subsidiaries have been chartered to do business By order of the Board of Governors, effective in Wyoming for at least three years. Based on the December 27, 1990. foregoing, the Board has determined that the proposed acquisition is specifically authorized by the statute Voting for this action: Governors Seger, Angell, Kelley, laws of Wyoming and that Board approval of the LaWare, and Mullins. Absent and not voting: Chairman proposal is not barred by the Douglas Amendment.3 Greenspan. Norwest, with total consolidated assets of $27.8 JENNIFER J. JOHNSON billion, operates 36 banking subsidiaries located in Associate Secretary of the Board 1. 12 U.S.C. § 1842(d). A bank holding company's home state is that state in which the operations of the bank holding company's bank subsidiaries were principally conducted on July 1, 1966, or the date on which the company became a bank holding company, whichever is later. Id. 4. Data are as of March 31, 1990. 2. Wyo. Stat. § 13-9-303 (1990). 5. The record of performance of Norwest under the Community 3. The Banking Division of the Wyoming Department of Audit has Reinvestment Act is discussed in the Board's Order approving Norconfirmed that the acquisition of WNB is authorized under Wyoming west's acquisition of Chalfen Bankshares, Inc., Anoka, Minnesota, 77 law. Federal Reserve Bulletin 110 (1991) (Order dated December 27, 1990). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 115 Orders Approved Under Section 4 of the Bank MSBI, with total consolidated assets of $185.9 mil- Holding Company Act lion, operates two banking subsidiaries in Georgia.2 MSBI is the 22nd largest commercial banking organi- Main Street Banks Incorporated zation in Georgia, controlling approximately $148.7 Covington, Georgia million in commercial bank deposits in Georgia, representing less than 1 percent of the total deposits in Order Approving Application to Acquire a Savings commercial banking organizations in the state. Main Association Street is the 52nd largest savings association in Georgia, with approximately $47.9 million in total deposits, Main Street Banks Incorporated, Covington, Georgia representing less than 1 percent of the total thrift ("MSBI"), a bank holding company within the mean- deposits in the state.3 Upon consummation of the ing of the Bank Holding Company Act ("BHC Act"), proposed acquisition, MSBI would become the 17th has applied pursuant to section 4(c)(8) of the BHC Act largest commercial banking organization in Georgia, (12 U.S.C. § 1843(c)(8)) and section 225.23(a) of the controlling approximately $196.6 million in deposits, Board's Regulation Y (12 C.F.R. 225.23(a)), to acquire representing less than 1 percent of total deposits in all of the outstanding shares of Main Street Savings commercial banking organizations in the state. In the Bank, F.S.B., Conyers, Georgia ("Main Street"), a de Board's view, consummation of this proposal would novo federally chartered savings bank, pursuant to not have a significantly adverse effect upon the concentration of banking organizations in Georgia. section 225.25(b)(9) of the Board's Regulation Y (12 C.F.R. 225.25(b)(9)). MSBI and Main Street compete directly in the Notice of the application, affording interested per- Atlanta, Georgia, banking market.4 In the Atlanta sons an opportunity to submit comments, has been banking market, MSBI is the 19th largest depository published (55 Federal Register 47,392 (1990)). The organization with $130 million in deposits, representtime for filing comments has expired, and the Board ing less than 1 percent of the total deposits held by has considered the application and all comments banks and savings associations operating in the market received in light of the public interest factors set ("market deposits"). Main Street is the 78th largest forth in section 4(c)(8) of the BHC Act.1 depository organization in the market, with $47.9 The Board has determined that the operation of a million in deposits, representing less than 1 percent of savings association is closely related to banking and market deposits. Upon consummation of this propermissible for bank holding companies. 12 C.F.R. posal, MSBI would become the 15th largest depository 225.25(b)(9). In making this determination, the Board organization in the market, with $177.9 million in deposits, representing less than 1 percent of market required that savings associations acquired by bank deposits.5 The Herfindahl-Hirschman Index holding companies conform their direct and indirect ("HHI"), upon consummation, would decrease by 2 activities to those permissible for bank holding compoints to 1089.6 Based on these and other facts of panies under section 4 of the BHC Act. MSBI has committed that, upon consummation, Main Street will engage in only those activities permitted for bank 2. Asset data are as of September 30, 1990. State and market holding companies under section 4(c)(8) of the BHC banking data are as of December 31, 1989, and June 30, 1989, Act and Regulation Y. respectively. In order to approve applications under section 3. Main Street's parent, Prime Bancshares, Inc., Decatur, Georgia, will organize a new federal thrift (Main Street) and cause Main Street 4(c)(8) of the BHC Act, the Board is required to to acquire two branches located in Rockdale County, Georgia, from determine that the performance of the proposed activ- DeKalb Federal Savings Bank (now known as Prime Bank, F.S.B.) which is affiliated with Main Street. MSBI will then acquire Main ities by MSBI "can reasonably be expected to produce Street. Accordingly, the deposit data of Main Street and the competbenefits to the public . . . that outweigh possible itive considerations in this Order reflect Main Street's operations in adverse effects, such as undue concentration of re- Rockdale County upon consummation of the restructuring. 4. The Atlanta Metro Area banking market includes the counties of sources, decreased or unfair competition, conflicts of Cherokee, Clayton, Cobb, DeKalb, Douglas, Fayette, Forsyth, Fulinterests, or unsound banking practices." 12 U.S.C. ton, Gwinnett, Henry, Newton, Paulding, Rockdale, Coweta, and Walton. § 1843(c)(8). 5. The pre-consummation market share data are based on calculations in which the deposits of Main Street and all other thrifts are included at 50 percent. Upon consummation of the proposal, Main Street would be affiliated with a commercial banking organization, thus, on a pro forma basis, the deposits of Main Street are included at 100 percent, while the deposits of other savings associations continue to be included at 50 percent. 1. The Community Bankers Association of Georgia submitted 6. Under the revised Department of Justice Merger Guidelines, 49 comments regarding the proposal's compliance with state law but Federal Register 26,823 (1984), a market in which the post-merger subsequently withdrew those comments. HHI is between 1000 and 1800 is considered moderately concentrated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

116 Federal Reserve Bulletin • February 1991 record, the Board concludes that the acquisition would Street. Accordingly, the Board has determined that not have a significantly adverse effect on competition the proposed application should be, and hereby is, in the Atlanta banking market. approved. This determination is subject to all of the The financial and managerial resources and future conditions set forth in the Board's Regulation Y, prospects of MSBI and its bank subsidiaries and of including sections 225.4(d) and 225.23 (12 C.F.R. Main Street are consistent with approval. In assessing 225.4(d) and 225.23), and to the Board's authority to the financial factors, the Board believes that bank require modification or termination of the activities of holding companies must maintain adequate capital at a bank holding company or any of its subsidiaries as savings associations that they propose to acquire. the Board finds necessary to assure compliance with, Upon consummation, MSBI and its bank subsidiaries or to prevent evasion of, the provisions and purposes would meet applicable capital requirements, and of the BHC Act and the Board's regulations and orders MSBI will cause Main Street to meet all applicable issued thereunder. This transaction shall not be concapital requirements. In this regard, MSBI has com- summated later than three months after the effective mitted that Main Street will have Tier 1 capital, date of this Order, unless such period is extended for excluding all intangible assets, of at least 3 percent of good cause by the Board or by the Federal Reserve its total assets upon consummation of the proposal. In Bank of Atlanta, pursuant to delegated authority. addition, MSBI commits that Main Street will meet all By order of the Board of Governors, effective current and future minimum capital ratios adopted for December 21, 1990. savings associations by the Office of Thrift Supervision or the Federal Deposit Insurance Corporation. Voting for this action: Governors Seger, Angell, Kelley, The record does not indicate that consummation of LaWare, and Mullins. Absent and not voting: Chairman Greenspan. this proposal is likely to result in any significant adverse effects, such as undue concentration of re- JENNIFER J. JOHNSON sources, decreased or unfair competition, conflicts of Associate Secretary of the Board interests, or unsound banking practices. Georgia law states that no "bank," including a The Mitsui Taiyo Kobe Bank, Limited federal savings bank, can be acquired by a bank Tokyo,Japan holding company unless it has been in existence and continuously operating as a bank for a period of five Order Approving Application to Engage in Various years or more.7 Under Georgia law, however, this Interest Rate and Currency Swap and Private five-year requirement is satisfied if the "predecessor Placement Activities institution" of the bank to be acquired has been continuously operating or chartered to operate as a The Mitsui Taiyo Kobe Bank, Limited, Tokyo, Japan bank for at least five years. The Georgia Department ("Mitsui Taiyo Kobe"), a bank holding company of Banking and Finance has approved this transaction, within the meaning of the Bank Holding Company concluding that the predecessor institution to Main Act ("BHC Act"), has applied for the Board's ap- Street, DeKalb Federal Savings Bank and the two proval under section 4(c)(8) of the BHC Act Rockdale County branches, satisfies the five-year lon- (12 U.S.C. § 1843(c)(8)), and section 225.23(a)(3) of gevity requirement for purposes of Georgia law.8 the Board's Regulation Y (12 C.F.R. 225.23(a)(3)) to Based on the foregoing and all the facts of record engage de novo through its subsidiary, Mitsui Taiyo including the commitments made by MSBI set forth in Kobe Global Capital, Inc., New York, New York this Order, the Board has determined that the balance ("Company"),1 in the following activities: of public interest factors it must consider under sec- (1) Intermediating in the international swap markets tion 4(c)(8) of the BHC Act is favorable and consistent by acting as originator and principal in interest rate with approval of MSBI's application to acquire Main swap and currency swap transactions; (2) Acting as an originator and principal with respect to certain risk-management products such as caps, In such markets, the Justice Department is unlikely to challenge a merger if the increase in the HHI is less than 100 points. 7. Ga. Code Ann. § 7-l-608(a)(2) (1989). 8. See Certificate of Approval from Robert M. Moler, Deputy 1. Company will be two-thirds owned by Mitsui Taiyo Kobe and Commissioner, dated December 17, 1990, and transmittal letter. one-third owned by Brown, Bramwell & Company, Inc. ("Brown, DeKalb Federal Savings Bank was chartered in 1941 and has contin- Bramwell"), a newly-formed corporation which is wholly owned by uously operated its two Rockdale County branches since 1963 and two individuals who will serve as officers of Company. Mitsui Taiyo 1981. The Georgia Department's approval also places certain condi- Kobe has committed that as long as Brown, Bramwell is a shareholder tions on Main Street's ability to branch or convert to a commercial of Company, Brown, Bramwell will not engage in any business or bank, and the Board expects Main Street to comply with the condi- make investments other than holding the stock of Company without tions of the state approval. prior written consent of the Federal Reserve System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 117 floors and collars, as well as options on swaps, caps, provide credit screening for all potential counterparties floors and collars ("swap derivative products"); of Company through its credit desk services in Tokyo. (3) Acting as a broker or agent with respect to the In appropriate cases, Company will obtain a letter of foregoing transactions or instruments; credit on behalf of, or collateral from, a counterparty. (4) Acting as adviser to institutional customers re- In addition, Company will establish separate credit risk garding financial strategies involving interest rate and exposure limits for each swap counterparty. Company currency swaps and swap derivative products; and will monitor this exposure on an ongoing basis, in the (5) Through a subsidiary of Company, providing aggregate, and with respect to each counterparty. Senservices related to structuring and arranging, as ior management will be periodically informed of the agent, the private placement of debt securities or potential risk to which Company is exposed. similar instruments that are incidental to the above- In order to manage the risk associated with adverse mentioned swap activities. changes in interest rates ("price risk"), Company will match all the swaps and related instruments in which it Notice of the application, affording interested per- is principal and will hedge any unmatched positions sons an opportunity to submit comments, has been pending a suitable match. Company will not enter into published (55 Federal Register 42,268 (1990)). The time unmatched or unhedged swaps for speculative purfor filing comments has expired, and the Board has poses. Company's management will set absolute limits considered the application and all comments received on the level of risk to which its swap portfolio may be in light of the factors set forth in section 4 of the BHC exposed. Company's exposure to price risk will be Act. monitored by both business management and internal With total consolidated assets equivalent to approx- auditing personnel to guarantee compliance with the imately $403 billion, Mitsui Taiyo Kobe is the second risk limitations imposed by management. Auditing largest banking organization in the world.2 In the personnel will report directly to senior management to ensure that any violations of portfolio risk limitations United States, Mitsui Taiyo Kobe owns a bank subsidare reported and corrected. iary in Los Angeles, California; two trust companies in New York, New York; two agencies in Los Angeles, With respect to the risk associated with the potential California, and branches in Chicago, Illinois; New for differences between the floating rate indices on two York, New York; and Seattle, Washington.3 It engages matched or hedged swaps ("basis risk"), Company's in securities brokerage activities through Mitsui Secu- management will impose absolute limits on the aggrerities Company (USA), Inc., New York, New York. gate basis risk to which Company's swaps portfolio may be exposed. If the level of risk threatens to Swap Activities exceed the limits at any time, Company will actively seek to enter into matching transactions for its un- The Board previously has determined by order that the matched positions. Company's internal auditing staff, proposed activities relating to swaps and swap deriv- together with management, will monitor compliance ative products are closely related to banking and with the management-imposed basis risk limits.5 permissible for bank holding companies within the In addition, Company intends to minimize operameaning of section 4(c)(8) of the BHC Act.4 Mitsui tions risk through the recruitment and training of an Taiyo Kobe proposes to engage in these swap activi- experienced bank-office support staff and the use of a ties in accordance with all of the provisions and separate operational and data processing structure for conditions set forth in these orders. processing swap and hedging transactions. Company appears to be capable of managing the In order to minimize any possible conflicts of interrisks associated with the proposed activities. Mitsui ests between Company's role as a principal or broker Taiyo Kobe, which has extensive experience in lending in swap transactions and its role as advisor to potential and financing services worldwide, has undertaken to counterparties, Company will disclose to each customer the fact that Company may have an interest as a counterparty principal or broker in the course of 2. Data are as of March 31, 1990. action ultimately chosen by the customer. Also, in any 3. Under the conditions in The Mitsui Bank, Limited, 76 Federal case in which Company has an interest in a specific Reserve Bulletin 381 (1990), Mitsui Taiyo Kobe will consolidate its separate full-service branches in New York City, limited branches in Chicago, and agency offices in Los Angeles by March, 1991. Mitsui Taiyo Kobe has conformed the deposit-taking activities of its Washington branch as required by section 5 of the International Banking 5. In addition to price and basis risk, the value of a swap option is Act and the Board's Order. subject to market expectations of the future direction and rate of 4. The SanwaBank, Limited, 77 Federal Reserve Bulletin 64 (1991); change in interest rates, or volatility risk. Company's management The Fuji Bank, Limited, 76 Federal Reserve Bulletin 768 (1990); The will impose absolute limits on the level of volatility risk to which Sumitomo Bank, Limited, 75 Federal Reserve Bulletin 582 (1989). Company's swap portfolio may be exposed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

118 Federal Reserve Bulletin • February 1991 transaction as an intermediary or principal, Company by order that acting as agent in the private placement will advise its customer of that fact before recom- of all types of securities is closely related to banking mending participation in that transaction.6 In addition, and permissible for bank holding companies within the Company's advisory services will be offered only to meaning of section 4(c)(8) of the BHC Act.8 Mitsui sophisticated institutional customers who would be Taiyo Kobe has committed that Company will conduct unlikely to place undue reliance on investment advice its private placement activities in a manner consistent received and better able to detect investment advice with, and subject to, the prudential limitations relied motivated by self-interest.7 upon by the Board in approving this activity.9 The Board has expressed its concerns regarding Mitsui Taiyo Kobe has proposed to have its U.S. conflicts of interests and related adverse effects that, affiliates, branches or agencies extend credit to an absent certain limitations, may be associated with issuer whose debt securities have been placed by the financial advisory activities. In order to address these placement subsidiary10 of Company where the propotential adverse effects, Mitsui Taiyo Kobe has com- ceeds would be used to pay the principal amount of the mitted that: securities at maturity. Mitsui Taiyo Kobe has commit- (i) Company's financial advisory activities will not ted that these extensions of credit will conform to the encompass the performance of routine tasks or limitations set forth in the Board's decision in J.P. operations for a client on a daily or continuous Morgan, including the requirement that a period of at basis; least three years elapse from the time of the placement (ii) Disclosure will be made to each potential of the securities to the decision to extend credit, that client of Company that Company is an affiliate of Mitsui Taiyo Kobe maintain adequate documentation Mitsui Taiyo Kobe; of these transactions and decisions, and that the ex- (iii) Company will not make available to Mitsui tensions of credit meet prudent and objective stan- Taiyo Kobe or any of Mitsui Taiyo Kobe's subsid- dards, as well as the standards set out in section 23B of iaries confidential information received from Com- the Federal Reserve Act.11 The Federal Reserve Bank pany's clients, except with the client's consent; of San Francisco will closely review loan documentaand tion of U.S. affiliates to ensure that an independent (iv) Advice rendered by Company on an explicit and thorough credit evaluation has been undertaken fee basis will be without regard to correspondent with respect to the participation of the bank in these balances maintained by a client of Company at credit extensions to issuers of securities privately Mitsui Taiyo Kobe or any of Mitsui Taiyo Kobe's placed by an agent affiliated with the bank. depository subsidiaries. Mitsui Taiyo Kobe also has proposed to have the placement subsidiary place securities with its parent Private Placement Activities holding company or with a nonbank subsidiary of the parent company consistent with the Board's ruling in Mitsui Taiyo Kobe also has applied to provide services J.P. Morgan. In this regard, Mitsui Taiyo Kobe will related to structuring and arranging, as agent, the establish both individual and aggregate limits on the private placement of debt securities or similar instru- investment by affiliates of the placement subsidiary in ments which are incidental to the above-mentioned any particular issue of securities that is placed by the swap activities. The Board has previously determined 8. See, e.g., First Union Corporation, 76 Federal Reserve Bulletin 6. In any transaction in which Company arranges a swap transaction 174 (1990); J.P. Morgan & Company Incorporated, 76 Federal between an affiliate and a third party, the third party will be informed Reserve Bulletin 26 (1990); Bankers Trust New York Corporation, 75 that Company is acting on behalf of an affiliate. Federal Reserve Bulletin 829 (1989). 7. An institutional customer is defined by Mitsui Taiyo Kobe to be: 9. See Bankers Trust New York Corporation, 73 Federal Reserve (1) a bank (acting in an individual or fiduciary capacity); an Bulletin 138, 152-53 (1987) ("Bankers Trust"), as modified in The insurance company; a registered investment company under the Bank of Montreal, 74 Federal Reserve Bulletin 500 (1988) (quantitative Investment Company Act of 1940; or a corporation, partnership, limitations unnecessary), Bankers Trust New York Corporation, 75 trust, proprietorship, organization or institutional entity with assets Federal Reserve Bulletin 829 (1989) (placement with "accredited exceeding $1,000,000 that regularly engages in transactions in investors" as this term is defined in the Securities Act of 1933), The securities; Chase Manhattan Corporation, 76 Federal Reserve Bulletin 658 (2) an employee benefit plan with assets exceeding $1,000,000 or (1990) (placement of minimum denominations of $100,000), First whose investment decisions are made by a bank, insurance com- Eastern Corporation, 76 Federal Reserve Bulletin 764 (1990) (prohipany or investment advisor registered under the Investment Advis- bition of director interlocks between Company and lead bank unnecers Act of 1940; essary), and The Toronto-Dominion Bank, 76 Federal Reserve Bulle- (3) a broker-dealer or options trader registered under the Securities tin 573 (1990) (private placement activities by affiliates of foreign Exchange Act of 1934, or other securities, investment or banking banks). professional; or 10. The placement subsidiary will be a broker/dealer and member of (4) an entity all of the equity owners of which are institutional the National Association of Securities Dealers. customers. 11. 12 U.S.C. § 371c-l. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 119 placement subsidiary and will establish appropriate consummation of this proposal is not likely to result in internal policies, procedures, and limitations regarding any significant adverse effects, such as undue concenthe amount of securities of any particular issue placed tration of resources, decreased or unfair competition, by the subsidiary that may be purchased by Mitsui conflicts of interests, or unsound banking practices. Taiyo Kobe and each of its nonbanking subsidiaries, Accordingly, the Board has determined that the perindividually and in the aggregate.12 These policies and formance of the proposed activities by Mitsui Taiyo procedures, as well as the purchases themselves, will Kobe can reasonably be expected to produce public be reviewed by the Federal Reserve Bank of San benefits that would outweigh adverse effects under the Francisco. proper incident to banking standard of section 4(c)(8) of the BHC Act. Financial Factors, Managerial Resources and Other Based on the above, the Board has determined to, Considerations and hereby does, approve the application subject to the commitments made by Mitsui Taiyo Kobe, as well as all In order to approve this application, the Board is of the terms and conditions set forth in this order and in required to determine that the performance of the the above-noted Board orders that relate to these proposed activities of Mitsui Taiyo Kobe "can reason- activities. The Board's determination is also subject to ably be expected to produce benefits to the public . . . all of the conditions set forth in Regulation Y, including that outweigh possible adverse effects, such as undue those in sections 225.4(d) and 225.23(b), and to the concentration of resources, decreased or unfair com- Board's authority to require modification or terminapetition, conflicts of interests, or unsound banking tion of the activities of a bank holding company or any practices." 12 U.S.C. § 1843(c)(8). of its subsidiaries as the Board finds necessary to assure In every case involving a nonbanking acquisition by compliance with, and to prevent evasion of, the provia bank holding company under section 4 of the BHC sions of the BHC Act and the Board's regulations and Act, the Board considers the financial condition and orders issued thereunder. resources of the applicant and its subsidiaries and the This transaction shall not be consummated later effect of the transaction on these resources.13 In this than three months after the effective date of this order, case, the primary capital ratio of Mitsui Taiyo Kobe, unless such period is extended for good cause by the as publicly reported, is below the minimum level Board or by the Federal Reserve Bank of San Franspecified in the Board's Capital Adequacy Guidelines. cisco, pursuant to delegated authority. After making adjustments to reflect Japanese banking By order of the Board of Governors, effective and accounting practices, however, including consid- December 10, 1990. eration of a portion of the unrealized appreciation in Mitsui Taiyo Kobe's portfolio of equity securities Voting for this action: Governors Angell, Kelley, La Ware, consistent with the principles in the Basle capital and Mullins. Absent and not voting: Chairman Greenspan framework, Mitsui Taiyo Kobe's capital ratio meets and Governor Seger. United States standards. JENNIFER J. JOHNSON Consummation of the proposal would provide added Associate Secretary of the Board convenience to Mitsui Taiyo Kobe's customers. In addition, the Board expects that the de novo entry of NCNB Corporation Mitsui Taiyo Kobe into the market for these services Charlotte, North Carolina in the United States would increase the level of competition among providers of these services. Under the framework established in this and prior decisions, Order Approving Application to Acquire a Savings Association 12. The limit established shall not exceed 50 percent of the issue NCNB Corporation, Charlotte, North Carolina being placed. Additionally, in the development of these policies and procedures, Mitsui Taiyo Kobe will incorporate, with respect to ("NCNB"), a bank holding company within the meanplacements of securities, the limitations established by the Board in ing of the Bank Holding Company Act ("BHC Act"), condition 12 of its order regarding aggregate exposure of Mitsui Taiyo has applied for the Board's approval under section Kobe's U.S. subsidiaries and offices on a consolidated basis to any single customer whose securities are underwritten or dealt in by the 4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8)) and placement subsidiary. J.P. Morgan & Company, Incorporated, The section 225.23 of the Board's Regulation Y (12 C.F.R. Chase Manhattan Corporation, Bankers Trust New York Corporation, Citicorp and Security Pacific Corporation, 75 Federal Reserve 225.23), to acquire De Novo NCNB Florida Federal Bulletin 192 (1989). Savings Bank, IV, Tampa, Florida ("De Novo Sav- 13. 12 C.F.R. 225.24; The Fuji Bank, Limited, 75 Federal Reserve ings"), a savings association, pursuant to section Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal Reserve Bulletin 155, 156 (1987). 225.25(b)(9) of the Board's Regulation Y (12 C.F.R. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

120 Federal Reserve Bulletin • February 1991 225.25(b)(9)). De Novo Savings has been formed to Upon consummation of the proposed transactions, acquire the assets and assume the liabilities of two NCNB would remain the fifth largest commercial branches of American Savings and Loan Associa- banking organization in Florida. In the Board's view, tion, Miami, Florida ("American"). NCNB has also consummation of this proposal would not have a requested Board approval of its proposal under sec- significantly adverse effect on the concentration of tion 5(d)(3) of the Federal Deposit Insurance Act banking resources in Florida. ("FDI Act"), as amended by the Financial Institu- The two branches of American that NCNB is protions Reform, Recovery, and Enforcement Act of posing to acquire operate in the Hernando County, 1989 (Pub. L. No. 101-73, § 206, 103 Stat. 183, 199 Florida banking market.3 NCNB does not currently (1989)) ("FIRREA"), to merge De Novo Savings own or operate any depository institutions or deposiinto one of NCNB's existing subsidiary banks, tory institution branches in this market. Based on all NCNB National Bank of Florida, Tampa, Florida the facts of record, the Board has determined that (' 'NCNB-Florida'').1 consummation of this proposal would not have a Notice of the applications, affording interested per- significantly adverse effect on the concentration of sons an opportunity to submit comments, has been resources or on competition in any relevant banking published (55 Federal Register 37,359 (1990)). The market. time for filing comments has expired, and the Board The financial and managerial resources and future has considered the applications and all comments prospects of NCNB and its bank subsidiaries are received in light of the public interest factors set forth consistent with approval. Upon consummation, in section 4(c)(8) of the BHC Act. NCNB and its bank subsidiaries would meet all appli- The Board has determined that the operation of a cable regulatory capital requirements. savings association is closely related to banking and In connection with this application, the Board has permissible for bank holding companies. 12 C.F.R. received comments from the Charlotte Reinvestment 225.25(b)(9). In making this determination, the Board Alliance, Charlotte, North Carolina ("Alliance"), and required that savings associations acquired by bank Texas ACORN, Dallas, Texas, critical of the perforholding companies conform their direct and indirect mance of NCNB's lead North Carolina bank, NCNB activities to those activities permissible for bank hold- National Bank of North Carolina, Charlotte, North ing companies under section 4 of the BHC Act. NCNB Carolina ("NCNB-North Carolina"), as well as that of has committed to conform all activities of De Novo NCNB's lead Texas bank, NCNB Texas National Savings to the requirements of section 4 of the BHC Bank ("NCNB-Texas"), Dallas, Texas, under the Act and Regulation Y. In order to approve the appli- Community Reinvestment Act (12 U.S.C. § 2901 cation, the Board also is required by section 4(c)(8) of et seq.) ("CRA"). The Board previously has indicated the BHC Act to determine that the ownership and that the terms and the purposes of the CRA and the operation of De Novo Savings by NCNB "can reason- BHC Act require the Board to consider CRA perforably be expected to produce benefits to the public . . . mance in connection with its review of a section 4 that outweigh possible adverse effects, such as undue application by a bank holding company to acquire a concentration of resources, decreased or unfair com- savings association.4 Accordingly, in considering this petition, conflicts of interests, or unsound banking application, the Board has taken into account the practices." 12 U.S.C. § 1843(c)(8). record of NCNB's subsidiary banks in meeting their NCNB, with total consolidated assets of $69.2 bil- obligations under the CRA. lion, operates 16 banking subsidiaries located in North The Alliance contends that NCNB-North Carolina Carolina, Georgia, Florida, Maryland, South Carolina, has failed to meet the credit needs of its entire com- Texas, and Virginia. NCNB is the fifth largest banking munity, including low-income and minority neighbororganization in Florida, controlling approximately $9.5 hoods. Specifically, the Alliance alleges: billion in deposits in the state, representing 8.5 percent of the total deposits in commercial banking organizations in Florida.2 The American branches to be ac- 3. The Hernando County market consists of Hernando County, quired by NCNB control $24.0 million in deposits. Florida. 4. Norwest Corporation, 76 Federal Reserve Bulletin 873, 876 (1990). The Board previously has determined that the CRA by its terms does not apply to applications by bank holding companies to acquire nonbanking companies under section 4(c)(8) of the BHC Act. 1. 12 U.S.C. § 1815(d)(3). Section 5(d)(3) of the FDI Act (the The Mitsui Bank, Ltd., 76 Federal Reserve Bulletin 381 (1990). In this "Oakar Amendment") permits the merger of a savings association regard, the Board notes that, unlike all other companies that may be owned by a bank holding company into a subsidiary bank owned by acquired by bank holding companies under section 4(c)(8) of the BHC the same bank holding company under certain circumstances. Act, savings associations are insured depository institutions, as that 2. Asset data are as of September 30, 1990. State banking data are term is defined in the CRA, and acquisitions of savings associations as of June 30, 1990. are subject to review under the express terms of the CRA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 121 (1) the bank is making few housing loans in Meck- NCNB has adopted a corporate CRA policy that sets lenburg County's low-income and/or minority cen- out CRA-related goals for all NCNB banks. Elements sus tracts; of the strategy for achieving these goals — community (2) branch office locations are not convenient for needs assessment, product development, target marlow-income or minority residents; keting, training, management involvement, community (3) the CRA Statement and the public file are not and economic development activities, and self-assessreadily available for public inspection; ment — are tailored to each statewide market and are (4) NCNB officials did not contact the Alliance when detailed in the community investment policies for members approached NCNB about two loan re- NCNB subsidiary banks. Results are monitored at each quests; and bank through quarterly meetings by a CRA Committee (5) NCNB maintains banking relationships with the of the bank's board of directors, and by a CRA Man- South African government. agement Committee comprised of CRA coordinators from each major market area and senior managers. With respect to NCNB-Texas, Texas ACORN alleges Reports on CRA developments at all of the NCNB that it is unable to obtain detailed information regard- banks are also provided on a quarterly basis to the ing CRA programs implemented by the bank. Addi- parent holding company's CRA Subcommittee of its tionally, in correspondence to the Alliance, other board of directors by the corporate Director of Comorganizations have raised concerns regarding the munity Investment. mortgage lending practices of NCNB-Texas. NCNB-North Carolina has received a satisfactory The Board has reviewed carefully the CRA perfor- rating from its primary regulator in the most recent mance record of NCNB's subsidiary banks as well as examination of its CRA performance. In addition, the the comments from Protestants in light of the CRA, bank has in place the types of programs outlined in the the Board's regulations and the Statement of the Agency CRA Statement as essential to any effective Federal Financial Supervisory Agencies Regarding the CRA program. For example, NCNB-North Carolina Community Reinvestment Act ("Agency CRA State- has worked with numerous local non-profit organizament").5 The Agency CRA Statement provides guid- tions involved with housing programs that benefit lowance regarding the types of policies and procedures income individuals such as the Charlotte-Mecklenburg that the supervisory agencies believe financial institu- Housing Partnership, the Greenville Neighborhood tions should have in place in order to fulfill their Project, the Neighborhood Housing Services of Charresponsibilities under the CRA on an ongoing basis, lotte, the Family Housing Services, the Charlotteand the procedures that the supervisory agencies will Mecklenburg Urban League and the Habitat for Huuse during the application process to review an insti- manity. The bank has provided assistance to these tution's CRA compliance and performance. The groups by participating in loan pools, extending com- Agency CRA Statement explains that decisions by mercial loans and making donations. For example, agencies to allow financial institutions to expand will NCNB-North Carolina has made a $5 million commitbe made pursuant to an analysis of the institution's ment to the Charlotte-Mecklenburg Housing Partneroverall CRA performance, and will be based on the ship Loan Program, a program designed to benefit actual record of performance of the institution. individuals who earn between 45 and 67 percent of the In this regard, the record indicates that substantially Department of Housing and Urban Development's all of NCNB's subsidiary banks, representing substan- ("HUD") median income for the Charlotte metropolitially all of NCNB's assets, have received satisfactory tan statistical area ("MSA"). The bank also has proratings from their primary regulators during the most vided a $200,000 line of credit to the Neighborhood recent examinations of each bank's CRA performance.6 Housing Services of Charlotte to purchase, rehabilitate and sell 25 homes to low- and moderate-income people and has provided funding to the Habitat for Humanity 5. 54 Federal Register 13,742 (1989). which resulted in the construction of almost 50 homes 6. The Board notes that one bank subsidiary, representing a small percentage of NCNB's assets, received a less than satisfactory CRA for low-income families. Under the Adopt-A-House performance rating in its most recent CRA examination. The subsid- Program, NCNB-North Carolina purchased land and iary bank has taken steps to address the deficiencies in its CRA building materials while its employees provided labor to performance and to improve performance, and has adopted a comprehensive CRA program that contains the elements of an effective CRA build a home for a low-income family. policy as outlined in the Agency CRA Statement, including the appointment of a CRA officer, conduct of needs assessment studies for each low-income census tract within the subsidiary bank's delineated community, and establishment of an officer call program. The record does not show that the problems identified at this subsidiary bank record, the Board believes that it is appropriate in this case to give indicate chronic institutional deficiencies or a pattern of CRA defi- weight to the corrective measures undertaken by NCNB to improve ciencies at other NCNB banks. In light of these and the other facts of the CRA performance of this subsidiary bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

122 Federal Reserve Bulletin • February 1991 Home Mortgage Disclosure Act ("HMDA") data for poration also offers loans through the Federal Housing 1987 and 1988 show that NCNB-North Carolina's hous- Administration-insured loan program and the Veterans ing-related lending in low- and moderate-income areas Administration's guaranteed loan program. compares favorably with its lending in other areas.7 In NCNB-North Carolina's CRA efforts also are enaddition, NCNB-North Carolina's housing related lend- hanced by the activities of NCNB Community Develing in minority areas has been consistent with, or has opment Corporation, Charlotte, North Carolina surpassed its lending in non-minority tracts having a ("CDC"), a non-profit subsidiary of NCNB-North comparable income level, and its record in penetrating Carolina, which makes housing loans that benefit lowminority communities compares quite favorably with and moderate-income areas. CDC is presently develop- HMDA-reporting lenders as a whole.8 Similar patterns ing a $10 million project for low-income housing in one are indicated for home improvement lending in both of the census tracts targeted by the Alliance. Upon years, with NCNB-North Carolina showing a stronger completion, the project will provide 105 new residential penetration of minority communities in low- and mod- units for low-income families. Approximately $600,000 erate-income as well as middle-income areas, than has been loaned under this program. Another CDCother lenders in the market. With regard to other loan sponsored project, financed by NCNB-North Carolina activity in low- and moderate-income census tracts and the city of Charlotte, received recognition for urban statewide, NCNB-North Carolina has made consumer development excellence from HUD. NCNB has taken loans in an amount of $101.3 million and commercial steps to obtain regulatory approval to establish a CDC loans in an amount of $230.7 million since 1989, and has in Texas. purchased investments that aid in constructing and NCNB-North Carolina's branch offices appear to be improving municipal and public housing projects in an reasonably accessible to low- and moderate-income amount that exceeded $70 million as of December 31, residents. The bank operates 31 full service branches in 1989. Analysis of NCNB-North Carolina's lending Mecklenburg County. While the Alliance has criticized practices in the market in which it operates does not the number of branches in low- and moderate-income suggest a pattern of illegal racial or income bias. neighborhoods, the record indicates that 11 of the NCNB-North Carolina, through its mortgage lending branches of NCNB-North Carolina, or 35 percent of its subsidiary, NCNB Mortgage Corporation, offers sev- branches, are located in the 38 low- and moderateeral mortgage products that are designed to accommo- income census tracts in the county. NCNB-North date the needs of low- and moderate-income buyers. Carolina recently has undertaken several projects de- The corporation participates in the Government Low- signed to improve and upgrade the access of low- and to Moderate-Income Program, which provides housing moderate-income customers to NCNB branches. For credit at below-market interest rates, with no minimum example, the bank's Beatties Ford branch, which is mortgage amount and assistance with closing costs. In located in the center of the largest minority-owned 1989, a total of 74 loans, in an amount of $4 million, retail business area in Mecklenburg County, was comwere made under this program in North Carolina, and pletely remodeled in late 1989 to provide customers at least $10.8 million in such loans were made through- with an enlarged and modern branch facility. In January out the states NCNB serves. The mortgage corporation 1990, NCNB-North Carolina opened the North Graham also participates in numerous state and county housing branch in a census tract with a 94 percent minority authority programs which involve the issuance of mort- population and a median income of $9,500 annually. gage revenue bonds to fund residential mortgage loans The branch is designed to offer check cashing and basic to low- and moderate-income buyers. The corporation banking services to residents of the community. The promotes both programs by contacting realtors that do Board notes that examination findings made no critibusiness in low- and moderate-income areas. The cor- cism of the convenience of branch locations or business hours for less affluent segments of the community. The Alliance has raised concerns regarding the avail- 7. In 1987 and 1988, NCNB-North Carolina's market share for ability of NCNB-North Carolina's CRA Notice and mortgage loans throughout the Charlotte MSA was 11 percent and 12 percent, respectively. The bank's market share in mortgages gener- CRA public file. In this application, NCNB-North ated for low-and moderate-income census tracts for the same period Carolina has an obligation under the Board's Regulawas 9 percent and 11 percent, respectively. In minority areas, tion BB (12 C.F.R. 228) to provide to any member of NCNB-North Carolina's market share for 1987 and 1988 was 21 percent and 16 percent, respectively. the public its CRA public file and CRA Notice upon 8. In 1987, for example, the ratio of mortgage loans made by request. NCNB-North Carolina has established proce- NCNB-North Carolina in low- and moderate-income minority areas to dures to ensure that such information is readily availthose made in non-minority areas in the same income bracket was 4 to 1, while that ratio for lenders in the aggregate was 1 to 1.5. In able upon request and has trained branch management middle-income neighborhoods, the ratio of NCNB's mortgage lending and all public contact personnel in the technical requirein minority versus non-minority areas was 1 to 1.6 as compared to a ments of the CRA. The record indicates that the bank's ratio of 1 to 4.5 for lenders as a whole. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 123 CRA record has been made available to representatives fully its CRA program and improve its record of CRA of the Alliance upon their request. In response to performance, and will consider the progress of NCNBcriticisms by the Alliance and Texas Acorn that NCNB Texas in future applications. Consummation of this has failed to respond to requests to initiate a dialogue proposal is not likely to result in any significant adverse regarding community needs, the record indicates that effects, such as undue concentration of resources, NCNB has sought input from various community orga- decreased or unfair competition, conflicts of interests, nizations, including the Alliance and Texas ACORN. or unsound banking practices. In light of the consider- NCNB has incorporated feedback received from the ations discussed above, and based on all the facts of community into its business plans. record, the Board has determined that the balance of NCNB's lead Texas Bank, NCNB-Texas, was public interest factors it must consider under section formed in 1988 when NCNB purchased from the Fed- 4(c)(8) of the BHC Act is favorable and consistent with eral Deposit Insurance Corporation the insolvent sub- approval of NCNB's application to acquire De Novo sidiary banks of First RepublicBank Corporation Savings.11 ("First Republic").9 The acquisition of the remaining Accordingly, the Board has determined that the subsidiaries of First Republic was completed in the proposed application pursuant to section 4(c)(8) of the third quarter of 1989. Since completion of the acquisi- BHC Act should be, and hereby is, approved. tion, NCNB-Texas has begun to implement the types of The Board also has considered the request by NCNB programs outlined in the Agency CRA Statement as for approval of the merger of De Novo Savings into essential to any effective CRA program and has re- NCNB-Florida pursuant to section 5(d)(3) of the FDI ceived a satisfactory rating from its primary regulator in Act.12 Based on all of the facts of record, the Board has its most recent examination. determined that the proposed application under section HMD A data for 1989 indicate that the number of 5(d)(3) of the FDI Act should be, and hereby is, residential mortgage loans made by NCNB-Texas, and approved. its predecessor, First Republic, in low- and moderate- The approvals granted in this Order are subject to income minority and racially-mixed tracts served by the NCNB's obtaining any other required approvals of the bank, as a percentage of all mortgage loans in its appropriate federal and state banking agencies for the portfolio, was somewhat higher than that for lenders in the aggregate in the Austin and Dallas MS As.10 To date, NCNB-Texas has originated or purchased $21 million 11. The Alliance also has requested that the Board hold a public in mortgages in low- and moderate-income census hearing to assess further facts surrounding NCNB's CRA performance. Generally, under the Board's rules, the Board may, in its tracts, which constitutes an increase of over one-third discretion, hold a public hearing or meeting on an application to clarify when compared to the volume of loans originated or factual issues related to the application and to provide an opportunity for testimony, if appropriate. 12 U.S.C. §§ 263.3(e) and 262.25(d). In purchased by the bank in 1989. In addition, NCNBthe Board's view, the Alliance has had ample opportunity to comment Texas has also committed to a $15 million participation and has submitted substantial written comments that have been in various housing finance bond programs in Texas in considered by the Board. In light of these facts, the Board has determined that neither a public hearing or pubic meeting is necessary 1990 and maintains agreements with Dallas civic groups to clarify the factual record in these applications, or otherwise which set specific goals for housing and small business warranted in this case. Accordingly, Protestant's request for a public lending in targeted communities. NCNB has indicated hearing or public meeting on this application is hereby denied. 12. The proposed merger of De Novo Savings into NCNB-Florida that it will continue to implement its CRA program. meets the requirements of section 5(d)(3) of the FDI Act. The record Based on these and other facts of record, the Board shows that: (1) the aggregate amount of the total assets of all depository believes that the record of performance under the CRA institution subsidiaries of NCNB is $69.2 billion, an amount which is consistent with approval of this application. The is not less than 200 percent of the total assets of De Novo Savings, Board expects NCNB-Texas to continue to implement which currently has approximately $24.0 million in total assets; (2) NCNB and all of its bank subsidiaries currently meet all applicable capital standards and, upon consummation of the proposed transactions, will continue to meet all applicable capital 9. The Trust Departments of NCNB's various subsidiary banks standards; maintain, in a fiduciary capacity, shares of a company doing business (3) the transaction is not in substance the acquisition of a Bank in South Africa. These shares were included in the assets acquired Insurance Fund member bank by a Savings Association Insurance from First Republic; however, NCNB is not the beneficial owner of Fund member; the shares. Such a relationship is not, by itself, an indicator that the (4) American, the predecessor of De Novo Savings, had tangible banks are engaged in discriminatory practices, as is suggested by the capital of less than 5 percent during the quarter preceding its Alliance. The record indicates that NCNB's banks maintain policies acquisition by NCNB; which prohibit discrimination. These policies are maintained at all (5) the transaction, which involves the merger of De Novo Savings, levels, and relate to, among other things, extensions of credit, a savings association located in Florida, into a bank subsidiary of operations, employment and purchasing. NCNB, a bank holding company whose banking subsidiaries' 10. However, the number of residential mortgage loans made by operations are principally conducted in North Carolina, would NCNB-Texas in all low- and moderate-income areas served by the comply with the requirements of section 3(d) of the BHC Act if bank was smaller than that for lenders in the aggregate in the Austin, De Novo Savings were a state bank which NCNB was applying to Dallas, Houston and San Antonio MS As. acquire. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

124 Federal Reserve Bulletin • February 1991 proposed transactions. The determination under sec- Notice of the application, affording interested pertion 4(c)(8) of the BHC Act is also subject to all of the sons an opportunity to submit comments, has been conditions set forth in the Board's Regulation Y, published (55 Federal Register 42,477 (1990)). The time including sections 225.4(d) and 225.23, and to the for filing comments has expired, and the Board has Board's authority to require such modifications or considered the application and all comments received termination of the activities of a bank holding com- in light of the factors set forth in section 4(c)(8) of the pany or any of its subsidiaries as the Board finds BHC Act. necessary to assure compliance with, or to prevent NCNB, with total consolidated assets of $69.2 bilevasion of, the provisions and purposes of the BHC lion, is sixth largest banking organization in the nation. Act and the Board's regulations and Orders issued NCNB operates eight subsidiary banks and engages thereunder. directly and through subsidiaries in a variety of per- The transactions approved in this Order shall be missible nonbanking activities.2 made not later than three months after the effective Under the proposal, FRM would not acquire an date of this Order, unless such period is extended for ownership interest in the assets that it manages or in good cause by the Board or by the Federal Reserve the institutions for which it provides asset manage- Bank of Richmond, pursuant to delegated authority. ment services.3 In addition, FRM would not engage in By order of the Board of Governors, effective providing real property management or real estate December 10, 1990. brokerage services as part of its proposed activities.4 The Board has previously approved many of the Voting for this action: Governors Angell, Kelley, LaWare, activities encompassed within NCNB's proposed asand Mullins. Absent and not voting: Chairman Greenspan set management activities on an individual basis.5 In and Governor Seger. addition, the Board has permitted bank holding companies to engage in asset management activities JENNIFER J. JOHNSON through the Management Consignment Program of the Associate Secretary of the Board Federal Home Loan Bank Board in First Florida Banks, Inc. ("First Florida").6 NCNB Corporation Charlotte, North Carolina Order Approving Application to Engage in Asset 2. Data are as of September 30, 1990. 3. Asset management encompasses the liquidation (or other dispo- Management, Servicing, and Collection Activities sition) of loans and their underlying collateral, including real estate and other assets acquired through foreclosure or in satisfaction of debts previously contracted ("DPC property"). Specific individual NCNB Corporation, Charlotte, North Carolina activities include: classifying and valuing loan portfolios; filing re- ("NCNB"), a bank holding company within the mean- views of loan documentation; developing collection strategies; negoing of the Bank Holding Company Act ("BHC Act"), tiating renewals, extensions, and restructuring agreements; initiating foreclosure, bankruptcy, and other legal proceedings, where approhas applied for the Board's approval under section priate; and developing and implementing market strategies for the sale 4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8)) and or refinancing of individual loans and for the packaging and sale of whole or securitized loan portfolios. In addition, NCNB would section 225.23(a)(3) of the Board's Regulation Y conduct and review (either directly or through independent contrac- (12 C.F.R. 225.23(a)(3)), to engage de novo in asset tors) appraisals and environmental inspections; provide asset valuamanagement, servicing, and collection activities tions; perform cash flow and asset review analyses; contract with and supervise independent property managers; and lease (either directly through FRM, Inc., Dallas, Texas ("FRM"). or through independent contractors) real estate and other DPC prop- FRM would provide asset management services to erty. NCNB also would dispose of DPC property by developing and the Resolution Trust Corporation ("RTC") and the implementing marketing strategies for the sale of DPC property, either individually or packaged for investors or developers. Federal Deposit Insurance Corporation ("FDIC"). In 4. NCNB will contract with independent third parties to obtain addition, NCNB proposes to provide these services these services for assets under FRM's management. both to unaffiliated third party investors that purchase 5. The Board has previously determined that bank holding companies may engage in the following individual activities proposed by pools of assets that have been assembled by the RTC or NCNB pursuant to the Board's Regulation Y: servicing extensions of the FDIC from troubled financial institutions, and gen- credit (section 225.25(b)(1)); performing functions or activities permissible for trust companies (section 225.25(b)(3)); providing investment erally to unaffiliated financial institutions with troubled or financial advice (section 225.25(b)(4)); providing management conassets.1 sulting to nonaffiliated depository institutions (section 225.25(b)(ll)); providing personal property and real estate appraisal activities (section 225.25(b)(13)); and operating a collection agency (section 225.25(b)(23)). The Office of the Comptroller of the Currency has also indicated that asset management is a permissible activity for national banks. See Memorandum from Paul Allan Schott, Chief Counsel, to 1. NCNB must obtain the prior approval of the Board before Emory W. Rushton, Deputy to the Director, RTC, dated October 18, providing asset management services in connection with pools of 1990. assets that were not originated or held by financial institutions and 6. 74 Federal Reserve Bulletin 771 (1988). This program involved their affiliates. corporations managing assets of failed financial institutions acquired Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 125 In this regard, NCNB has made commitments to management services or in the assets that it manages, address the concerns raised in First Florida regarding a NCNB will assume no adverse financial risk from bank holding company's ability to control an institution engaging in the proposed activities. The Board also through the terms of an asset management agreement believes that NCNB's de novo entry into the market without the necessary regulatory approvals. For exam- will increase competition for these services. ple, NCNB has committed that it will not own the stock However, NCNB also seeks approval to acquire of, or be represented on the board of directors of any institutions whose assets are being managed by FRM. unaffiliated institution for which FRM provides asset In First Florida, the Board expressed concern that a management services. In addition, NCNB has commit- bank holding company might obtain confidential inforted that FRM will not establish policies or procedures mation in the course of providing its asset management of general applicability, and that FRM's services for services that would provide the bank holding company unaffiliated financial institutions would be limited to with a competitive advantage over other institutions in asset management, servicing, and collection activities.7 the bidding process for the failed institution under Although the type of asset management activities management. The Board also noted that such informaproposed by NCNB are the same as those previously tion could give the managing bank holding company a approved by the Board, NCNB proposes to make these competitive advantage over the ultimate acquiror of the services available to a wider group of potential custom- failed institution in markets where they both compete. ers. Financial institutions and their affiliates, however, To address these concerns, NCNB has committed would continue to be the originator of the assets to be that it will establish and implement procedures to managed. Accordingly, NCNB would only manage preserve the confidentiality of information obtained in assets that its financial institution affiliates would have the course of providing asset management services.8 authority to originate and own. In the Board's view, the These procedures will prevent the use of information managed assets will be of the type that NCNB would obtained by FRM through its asset management activhave expertise to manage and the public or private ities in the course of preparing any bid that NCNB ownership of the assets would not affect the nature of may prepare to acquire the institution managed by the activity or diminish NCNB's ability to manage the FRM, or to unfairly compete against the winning assets. bidder in the relevant market. In light of the above, the Board believes that the On the basis of all of the facts of record, the Board proposed activities are closely related to banking. The concludes that potential adverse effects are outweighed Board is also required to determine that the perfor- by the public benefits that would result from approval mance of the proposed activity by NCNB is a proper of this application. There is also no evidence in the incident to banking—that is, whether the proposed record to indicate that consummation of this proposal is activity "can reasonably be expected to produce ben- likely to result in any significantly adverse effects, such efits, such as greater convenience, increased competi- as undue concentration of resources, decreased or tion, or gains in efficiency, that outweigh possible unfair competition, conflicts of interests, or unsound adverse effects, such as undue concentration of re- banking practices. Accordingly, the Board has detersources, decreased or unfair competition, conflicts of mined that the balance of public interest factors that it interests, or unsound banking practices." 12 U.S.C. must consider under section 4(c)(8) of the BHC Act is § 1843(c)(8). favorable and consistent with approval. The financial Consummation of the proposal can reasonably be and managerial resources and future prospects of expected to result in public benefits. NCNB's proposal NCNB and its subsidiaries, in the context of this would facilitate the disposal of assets of financial insti- proposal, are also consistent with approval. tutions in receivership as well as financial institutions Based upon the foregoing and all of the other facts of with troubled financial assets. Moreover, the efficient record, the Board has determined to approve, and disposition of such assets can reasonably be expected hereby does approve, this application. The Board's to produce benefits to the public. Since FRM will own determination is subject to all of the conditions set no equity in the institutions for which it provides asset forth in the Board's Regulation Y, including those in sections 225.4(d) and 225.23(b), and to the Board's authority to require modification or termination of the activities of a bank holding company or any of its by the Federal Home Loan Bank Board. In addition, the Board also permitted bank holding companies to provide asset management subsidiaries as the Board finds necessary to assure services for thrifts managed by the Federal Savings and Loan Insur- compliance with, and to prevent evasion of, the proance Corporation. 7. NCNB will also provide its services for a limited period of time. The Board notes that, while NCNB will manage assets on an ongoing basis, the owner of the assets retains the right to make all final decisions regarding asset dispositions and to terminate NCNB as an 8. NCNB's procedures will be subject to review by the Federal asset manager. Reserve System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

126 Federal Reserve Bulletin • February 1991 visions of the BHC Act and the Board's regulations rency Unit. Applicant has also applied for Partnership and orders issued thereunder. to provide execution services to SBX and Applicant's This transaction shall not be consummated later United States branches with respect to: than three months after the effective date of this (i) over-the-counter options on foreign exchange, Order, unless such period is extended for good cause U.S. government securities, and other money by the Board or by the Federal Reserve Bank of market instruments which a bank may buy or sell Richmond, acting pursuant to delegated authority. in the cash market for its own account, and By order of the Board of Governors, effective indices on such securities and instruments; December 24, 1990. (ii) exchange-traded transactions in futures, options, and options on futures on foreign exchange, Voting for this action: Governors Seger, Angell, Kelley, U.S. government securities and other money mar- LaWare, and Mullins. Absent and not voting: Chairman ket instruments which a bank may buy or sell in Greenspan. the cash market for its own account, and indices on such securities and instruments; and JENNIFER J. JOHNSON (iii) spot and forward transactions in foreign ex- Associate Secretary of the Board change. Swiss Bank Corporation Notice of the application, affording interested persons Basle, Switzerland an opportunity to submit comments on the proposal, has been published (55 Federal Register 29,896 Order Approving an Application to Engage in (1990)). The time for filing comments has expired, and Trading Options on Foreign Exchange and, Offering the Board has considered the application and all Investment Advice on Financial and Non-Financial comments received in light of the public interest Options and Futures Contracts, Securities, and factors set forth in section 4(c)(8) of the BHC Act. Interest Rate and Currency Swaps Applicant is the 28th largest banking organization in the world, controlling total consolidated assets of Swiss Bank Corporation, Basle, Switzerland ("Appli- approximately U.S. $123.3 billion.2 Applicant has cant"), a foreign bank subject to the provisions of the branches in New York, New York; Chicago, Illinois; Bank Holding Company Act (the "BHC Act"), has and San Francisco, California; and agencies in Atapplied under section 4(c)(8) of the BHC Act lanta, Georgia; Miami, Florida; and Houston, Texas. (12 U.S.C. § 1843(c)(8)) and section 225.23 of the OCA is an integrated group of companies and part- Board's Regulation Y (12 C.F.R. 225.23), for the nerships engaged in trading derivative instruments Board's approval to acquire control of SBC-O'Connor relating to debt and equity securities, oil, gas, silver, Services, L.P., Chicago, Illinois ("Partnership"). Ap- and gold. OCA trades for its own account in these plicant would acquire control through a limited part- instruments and does not offer investment advice to nership interest representing 80 percent of the equity third parties. Currently, the majority of OCA's activof Partnership.1 O'Connor Partners, an affiliate of ities are not permissible for bank holding companies O'Connor and Associates, Chicago, Illinois (O'Con- under section 4(c)(8) of the BHC Act. nor and Associates and its affiliates are collectively In order to approve an application submitted pursureferred to as "OCA"), a commodity trading organi- ant to section 4(c)(8) of the BHC Act, the Board is zation, would acquire a general partnership interest required to determine that the proposed activity is "so representing 20 percent of the equity of Partnership. closely related to banking as to be a proper incident Applicant has also applied under section 4(c)(8) of the thereto." 12 U.S.C. § 1843(c)(8). In considering BHC Act for the Board's approval for its wholly owned whether a proposed new activity would be a proper subsidiary, SBX, Chicago, Illinois, to become the Spe- incident to banking, the Board must find that the cialist in options on the Swiss franc traded during the proposed acquisition "can reasonably be expected to day session of the Philadelphia Stock Exchange produce benefits to the public . . . that outweigh the ("PHLX") and a registered options trader ("Trader") possible adverse effects, such as undue concentration with respect to options on the Deutsche mark, Japanese of resources, decreased or unfair competition, conyen, Swiss franc, British pound, Canadian dollar, flicts of interests, or unsound banking practices." French franc, Australian dollar, and European Cur- 12 U.S.C. § 1843(c)(8). 1. Applicant would acquire 79 percent directly and one percent through its wholly owned subsidiary, SBC Acquisition Sub, Wilmington, Delaware. 2. All banking data are as of December 31, 1989. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 127 I. Investment Advice on Non-Financial Derivative of non-financial futures advice for bank holding com- Contracts panies pursuant to section 4(c)(8) of the BHC Act. As outlined above, in order to approve this activity, the Applicant proposes that Partnership would provide Board must find that the activity is closely related to advice to Applicant, its affiliates, and OCA with re- banking and a proper incident thereto. spect to trading in derivative instruments, such as The Board believes that the record in this case options, futures contracts, and warrants. Partnership demonstrates that the provision of advice with respect would advise Applicant and its affiliates on trading in to non-financial futures and options is closely related derivative instruments relating to bank-eligible securi- to banking. The Office of the Comptroller of the ties and foreign exchange in the United States.3 In Currency ("OCC") has found that the provision of addition to providing advice on these matters, Partner- investment advisory services is within the "business ship also would provide advice to Applicant and its of banking."7 In this decision, the OCC determined foreign affiliates with respect to trading in derivative that advice on exchange-traded agricultural and other instruments, such as options, warrants, or futures, commodity futures contracts would be permissible for based on debt and equity securities outside of the a national bank, since the contracts are financial United States. Partnership also would give advice to products, and that the provision of investment advice Applicant and affiliates with respect to interest rate was essentially the same as the advice given with and currency swaps and swap derivative products. respect to financial futures contracts. The OCC's Applicant also has proposed that Partnership pro- position is that the provision of investment advice is vide advice to OCA and its affiliates on: incidental to the bank's authority to purchase and sell (1) trading debt and equity securities; the instruments on behalf of its customers.8 (2) trading options, futures, and options on futures The Board has permitted bank holding companies to with respect to debt and equity securities, including provide advice with respect to futures and options on options on futures and futures contracts based on futures relating to bank-eligible securities, bullion, and indices of debt and equity securities; and foreign exchange. 12 C.F.R. 225.25(b)(19). The Board (3) trading options, futures, and options on futures also has permitted bank holding companies to provide with respect to silver and gold. investment advice relating to options and futures contracts based on broad based indices of stock and Partnership also would give advice to OCA on bonds. The Hongkong and Shanghai Banking Corpotrading options and futures on oil and gas ("non- ration, Kellett, N.V., and HSBC Holdings, B.V., 76 financial futures advice").4 Applicant maintains that Federal Reserve Bulletin 770 (1990). The provision of the computer system that monitors the trading of investment advice with respect to investing in options options and futures based on bank-eligible securities and futures based on non-financial instruments apalso may be used for profitable trading of options and pears to be the functional equivalent of providing futures based on other types of commodities. advice with respect to options and futures based on The Board has determined that the provision of financial instruments, because, in each case, the bank investment advice with respect to securities, futures holding company subsidiary is furnishing advice with and options on futures on government securities, other respect to the trading of a financial instrument to a bank-eligible securities, and bullion is closely related sophisticated client. to banking. 12 C.F.R. 225.25(b)(4) and (b)(19). In The provision of investment advice to OCA and addition, the Board has permitted a bank holding Applicant appears not to present potential adverse company to provide investment advice with respect to effects, such as unfair competition, undue concentrafutures and options on futures based on stock and tion of resources, or conflicts of interests. Partnership bond indices,5 and interest rate and currency swaps.6 would provide this advice only to Applicant, its affil- The Board has not previously approved the provision iates, and OCA. Partnership would not provide advice to third parties without prior Board approval. OCA and Applicant are sophisticated institutions that would 3. Trades for the account of Applicant, as opposed to its subsidiar- be qualified to evaluate the advice given by Partneries, would be maintained at its state-chartered branches in New York, New York, and Chicago, Illinois. Partnership may execute some of the trades on behalf of the branches. Partnership would not, however, execute trades on behalf of foreign affiliates. 7. See, OCC Interpretative Letter 494, dated December 20, 1989. In 4. Neither Applicant nor any of its affiliates, including Partnership, this letter, the OCC determined that a national bank may provide would execute or clear transactions on behalf of OCA or its affiliates. execution, clearing, and advisory services for customer transactions 5. The Long-Term Credit Bank of Japan, Limited, 74 Federal in standardized, exchange-traded "nonfinancial" futures contracts Reserve Bulletin 573 (1988). and options, such as futures on oil and agricultural products. 6. The Sumitomo Bank, Limited, 75 Federal Reserve Bulletin 582 8. See, OCC Letter No. (date), reprinted in [1985-1987 Transfer (1989). Binder] Fed. Banking Law Rep. (CCH) 11 85,535. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

128 Federal Reserve Bulletin • February 1991 ship.9 Partnership would not execute or clear any securities and other money market instruments.11 Fitransactions on behalf of OCA. nally, the Board has previously approved the combi- Accordingly, the Board has determined, under the nation of securities brokerage with investment adfacts and circumstances of this case, that the provision vice.12 Accordingly, the Board finds that the proposed of investment advice on financial and non-financial combination of foreign exchange and government sefutures, options, and options on futures to OCA and curities advisory and execution services is closely Applicant is closely related to banking and a proper related to banking. incident to banking for purposes of section 4(c)(8) of In order to approve the combination of these activithe BHC Act. ties, the Board is required to determine that the activity would be a proper incident to banking. Partnership II. Execution Services on Behalf of Applicant and would provide execution services only to Applicant and SBX its affiliates. The provision of these services may be expected to increase competition, since Partnership Applicant has proposed that Partnership provide exe- would be facilitating Applicant's entry into these marcution services to SBX and Applicant's United States kets. In this case, the potential adverse effects, such as branches with respect to: conflicts of interests, or undue concentration of re- (i) over-the-counter options on foreign exchange, sources, are limited due to the fact that the services U.S. government securities, and other money would be provided solely to Applicant and SBX. market instruments, and indices on such securi- Accordingly, the Board has determined, under the ties and instruments; facts and circumstances of this case, that the combi- (ii) exchange-traded transactions in futures, op- nation of investment advice and execution services to tions, and options on futures on foreign exchange, Applicant's U.S. branches and SBX is closely related U.S. government securities and other money mar- to banking and proper incident thereto for purposes of ket instruments, and indices on such securities section 4(c)(8) of the BHC Act. and instruments; and (iii) spot and forward transactions in foreign ex- III. Trading in Options on Foreign Exchange change. Applicant has proposed that its wholly owned subsid- The Board has recognized that commercial banks and iary, SBX, trade for its own account in options13 based bank holding companies may combine the functions of on foreign exchange by: giving advice on foreign exchange transactions and (i) acting as the Specialist in Swiss franc options executing foreign exchange transactions.10 In addition, traded on the PHLX; and the Board has permitted a bank holding company to (ii) acting as a registered options trader in options combine advice and execution services in transactions on the Deutsche mark, Japanese yen, Swiss franc, on derivative instruments based on U.S. government British pound, Canadian dollar, French franc, Australian dollar, and European Currency Unit.14 11. Security Pacific Corporation, 70 Federal Reserve Bulletin 238 9. Under the Board's Regulation Y, a bank holding company may (1984); Citicorp, 76 Federal Reserve Bulletin 664 (1990); and 12 offer investment advice on financial futures and options only to C.F.R. 225.25(b)(18) and (b)(19). "financial institutions and other financially sophisticated institutions 12. PNC Financial Corp., 76 Federal Reserve Bulletin 396 (1989). that have significant dealing or holding in the underlying commodities, 13. A currency option represents the contractual right, but not the securities, or instruments." 12 C.F.R. 225.25(b)(19)(ii). OCA and obligation, to purchase or sell a predetermined amount of currency at Applicant would qualify under this definition due to their extensive a specific price at any time prior to a specific date. The option provides trading activities. a means of hedging foreign exchange risk and a means of investing in In addition, the Board's Regulation Y requires that when a bank foreign currency without incurring excessive risk. Other contracts holding company subsidiary offers investment advice, the subsidiary relating to foreign exchange are "spot" contracts, which are individbe registered as a commodity trading advisor ("CTA") with the ual agreements for the immediate (within two days) purchase or sale of Commodity Futures Trading Commission. This requirement does not currency, "forward" contracts, which are customized agreements for appear imperative in this application since OCA and Applicant would the purchase or sale of a specific quantity of currency to be settled at be co-venturers in Partnership, and thus, in essence, would be a predetermined future date, and futures contracts, which are stanproviding investment advice to themselves. Accordingly, registration dardized agreements for the purchase or sale of currency at a as a CTA does not appear necessary in this context. The Board has pre-determined future date traded on commodity exchanges. Both permitted the provision of investment advice with respect to financial forward and futures contracts provide a means to establish a firm futures without registration as a CTA. Security Pacific Corporation, exchange rate for an obligatory transaction at a later date. 74 Federal Reserve Bulletin 820 (1988) ("Security Pacific"). The 14. In addition to its market-making functions on the PHLX, customer base in Security Pacific was sophisticated institutional Applicant has proposed that SBX execute and clear options based on customers. As previously noted, Partnership would not offer invest- foreign exchange, and bank-eligible securities on behalf of Applicant ment advice to third parties. and its subsidiaries, including its U.S. branches. SBX's operations 10. Banca Commerciale Italiana S.p.A., 76 Federal Reserve Bulle- would be integrated with the trading program of Applicant. These tin 649 (1990); and 12 C.F.R. 225.25(b)(18) and (b)(19). services would appear to be permissible under section 4(a)(2)(A) of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 129 SBX would execute and clear transactions for its market, continually offering both bid and offer prices own account and for the accounts of affiliates. on the currencies and contracts they trade. Through their participation in the interbank market for foreign The Board has approved most of these market- currency options, banks have developed experience in making activities in previous orders.15 The Board has dealing, market-making and risk management, which denied an application to act as a specialist with respect are essential elements of the proposed activities. to options on the French franc.16 The Office of the Comptroller of the Currency As the sole Specialist in Swiss franc options desig- ("OCC") has authorized national banks to deal in nated by the PHLX, SBX would be obliged to make a foreign currency options as a Specialist and Trader on a market, or bid and offer, for all traders who approach it securities exchange.22 Banks are major participants in on the PHLX, but technically would not be obliged in all aspects of the foreign exchange markets and also act any way as to the price and quantity it bids and offers.17 as market-makers in various currencies.23 Their activi- Applicant maintains that Exchange rules generally pro- ties include trading for their own account as well as for hibit a Specialist from speculating.18 Specialists gener- customers in virtually all foreign exchange markets and ate profits from the spread between their bid and offer instruments, including trading foreign currency options quotations.19 The activities of a registered options on regulated exchanges as proposed here.24 trader are similar to the activities of a Specialist.20 The proposed activities would facilitate the devel- The Board has previously recognized that foreign opment of the foreign exchange options market by exchange activities have traditionally been conducted providing increased market liquidity and enhanced by banks and are permissible activities under the BHC opportunities for financial institutions to hedge foreign Act.21 Banks act as market-makers in the interbank exchange risk. In addition, the entry of Company into the market for these services may be expected to increase competition among Traders. Consummation BHC Act (12 U.S.C. § 1843(a)(2)(A)), which permits a bank holding of the proposal also is likely to provide gains in company subsidiary to furnish services to its affiliates. efficiency through linkage of the interbank foreign 15. Societe Generate, 75 Federal Reserve Bulletin 580 (1989) exchange market with the market for exchange-traded ("Societe Generate I") (approval of Specialist activities in Deutsche marks); and Societe Generate, 76 Federal Reserve Bulletin 776 (1990) options on foreign exchange. ("Societe Generate II") (approval of registered options trader activ- Because fluctuations in foreign exchange prices and ities in other currencies, except the French franc). volatility can affect such profits, SBX would operate 16. Companie Financiere de Suez and Banque Indosuez, 72 Federal Reserve Bulletin 141 (1986) ("Banque Indosuez"). pursuant to trading limits that would maintain its 17. The Specialist is subject to evaluation quarterly by floor traders exposure to limits adopted by Applicant and would be of the Exchange and, therefore, may have an incentive to make what traders would consider "good" bids and offers. constantly monitored by management. In addition, 18. Exchange Rule 1020 prohibits a Specialist from engaging in SBX would carefully hedge its portfolio of foreign transactions for its own account unless those transactions "are exchange options in order to ensure compliance with reasonably necessary to permit such specialist to maintain a fair and orderly market." these limits. 19. A Specialist's activities consist of three basic functions: With regard to the adverse effects that might stem (1) to use reasonable efforts to make a "fair and orderly" market in from the proposal, acting as a Specialist and Trader Swiss francs and to engage, to a reasonable degree under existing circumstances, in dealings for its own account when a lack of price involves the financial risk of adverse rate fluctuations. continuity or temporary supply/demand disparities exist; In this case, Applicant has sought to minimize these (2) to collate and publish the best bids/offers for Swiss franc options; and risks. First, the rules of the Exchange permit the (3) to act as agent for orders in Swiss franc options, in particular for "limit orders" left on the Specialist's books. 20. A Trader in foreign exchange options deals for its own account in order to maintain a "fair and orderly" market in certain options these activities would be permissible for a bank holding company when a lack of price continuity or temporary disparity in supply or since the activities were functionally and operationally similar to demand exists on options for which the Trader makes a market. SBX dealing in foreign currency. would be obliged to make a market in the proposed foreign currency 22. See, Letter dated June 3, 1988, from J. Michael Shepherd, options, or bid and offer, for all traders who approach it on the Senior Deputy Comptroller for Corporate and Economic Programs, to Exchange, but would not be obliged in any way as to the price and Republic National Bank of New York (acting as a registered options quantity it bids and offers. A Trader is permitted to "leave the floor," trader on the PHLX with respect to Australian dollars, Canadian i.e., not trade, provided the Trader meets minimum trading levels dollars, British pounds, German marks, Swiss francs, French francs, each quarter. Japanese yen, and European Currency Unit); Letter, dated January 21. See Hongkong and Shanghai Banking Corporation, 75 Federal 11, 1984, from Michael Patriarca, Deputy Comptroller for Multina- Reserve Bulletin 217 (1989) (trading foreign exchange forwards, fu- tional Banking, to H. Helmut Loring, Senior Vice President, Bank of tures, options, and options on futures for its own account for other America, N.T. & S.A. (acting as a specialist on the PHLX with than hedging purposes to a limited extent); and The Nippon Credit respect to the French franc). The OCC found that these activities were Bank, Ltd., 75 Federal Reserve Bulletin 308 (1989) (engaging in foreign permissible for national banks, and relied upon representations that exchange spot transactions). the bank would have limited exposure to the losses of its subsidiary. In addition, in 1989, the Board approved the application of Societe 23. See The Hong Kong and Shanghai Banking Corporation, Generate to engage de novo in acting as the specialist in deutsche mark Kellett, N.V., HSBC Holdings, B.V. and Marine Midland Banks, options traded on the Exchange during the Exchange's day session. Inc., 75 Federal Reserve Bulletin 217 (1989). Societe Generate I. In Societe Generate 1, the Board determined that 24. See Societe Generale II. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

130 Federal Reserve Bulletin • February 1991 Specialist and Trader to set the price and quantity that down the legally mandated separation of banking and it will buy and sell in order to minimize its risk in an commerce, create the possibility of conflicts of interadverse or volatile market. The Specialist or Trader is est, and other adverse effects that the BHC Act was required to deal for its own account as necessary to designed to prevent, or impair or give the appearance maintain a "fair and orderly market." Under the rules of impairing the ability of the banking organization to of the Exchange a Trader is permitted to leave the function effectively as an independent and impartial trading floor, provided it has met the minimum trading provider of credit.28 Further, joint ventures must be requirements for each quarter. Therefore, unlike the analyzed carefully for any possible adverse effects on Specialist, who is expected to trade at all times, a competition and on the financial condition of the Trader may refrain from dealing when potential profits banking organization involved in the proposal. do not appear likely. In prior cases involving joint ventures between bank Second, Applicant states that the proposed activi- holding companies and firms generally engaged in ties are not speculative and that Exchange Rules are securities activities not authorized for bank holding intended to prohibit a Specialist or Trader from spec- companies, the Board has relied on a series of comulating.25 Rather, Specialists and Traders generate mitments to address these potential adverse effects. profits from the spread between their bid and offer These commitments are designed to separate the acquotations. Applicant states that SBX would be care- tivities of the joint venture from those of the nonbankfully hedged at all times and would operate pursuant to ing co-venturer, Wells Fargo. In this case, Applicant trading limits that would limit its exposure to potential has made a number of commitments similar to those losses.26 that the Board has relied upon in other cases. The Third, the record also shows that Applicant has commitments are designed to ensure a separation experience in trading foreign currency options on the between the joint venture and OCA's activities related over-the-counter market and on exchanges, and hedg- to dealing in derivative instruments. Under the ciring strategies. In this regard, SBX would institute a cumstances of this case, and in view of the fact that computerized options risk-management system that OCA does not offer its services to customers and that would include an ongoing analysis of risk exposure the Partnership would not offer investment advice to and hedges; "what if' studies for different market unaffiliated third parties, the Board finds these comscenarios; continuous review of Company's compli- mitments are sufficient to address its concerns about ance with its own internal limits; and back-office potential adverse effects associated with the joint surveillance of the firm's floor trading activities.27 venture. Company would be a registered broker-dealer with the The financial and managerial resources of Applicant Securities and Exchange Commission and hence sub- are considered consistent with approval. Based on ject to the net capital requirements applicable to consideration of all the relevant facts, the Board registered broker-dealers. concludes that the balance of the public interest factors that it is required to consider under section 4(c)(8) IV. Joint Venture Considerations is favorable. Accordingly, based on all the facts of record, and subject to the conditions of this Order, the In prior decisions, the Board has expressed concern Board has determined that the proposed application that joint ventures could potentially lead to a matrix of should be, and hereby is, approved. relationships between co-venturers that could break The Board's determination is subject to all the conditions set forth in the Board's Regulation Y, including those in sections 225.4(d) and 225.23(b), and to the Board's authority to require modification or 25. Exchange Rule 1014 provides that a Specialist and a Trader termination of the activities of a bank holding comshould not enter into transactions for its own account unless those transactions "are reasonably calculated to contribute to the mainte- pany or any of its subsidiaries as the Board finds nance of a fair and orderly market." In addition, Rule 1015 states that necessary to assure compliance with, and to prevent no member of the Exchange should enter into a transaction which is evasion of, the provisions of the BHC Act and the "excessive in view of his financial resources or in view of the market for such security." Board's regulations and orders issued thereunder. 26. Applicant has not proposed to engage in pit arbitrage activities. This transaction shall not be consummated later than See Citicorp, 68 Federal Reserve Bulletin 776 (1982). Company would three months after the effective date of this Order, purchase and sell foreign exchange options as a market maker, and seek to profit from a disparity between bid and offer prices. Company would fully hedge these positions. 27. The Board believes that the circumstances of this case are distinguishable from the situation in Companie Financiere de Suez 28. See Amsterdam-Rotterdam, N.V., 70 Federal Reserve Bulletin and Banque Indosuez, 72 Federal Reserve Bulletin 141 (1986). Since 835 (1984); The Fuji Bank, Limited, 75 Federal Reserve Bulletin 577 that decision, the market for options has expanded and the involve- (1989); Wells Fargo & Company, 76 Federal Reserve Bulletin 465 ment of banks has become more widespread. (1990) ("Wells Fargo"). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 131 unless such period is extended for good cause by the sions of credit, pursuant to section 225.25(b)(1) of the Board or by the Federal Reserve Bank of New York, Board's Regulation Y (12 C.F.R. 225.25(b)(1)). pursuant to delegated authority. Notice of the applications, affording interested par- By order of the Board of Governors, effective ties an opportunity to submit comments, has been December 21, 1990. published (55 Federal Register 28,828 (1990)). The time for filing comments has expired and the Board has Voting for this action: Governors Seger, Angell, Kelley, considered the applications and all comments received La Ware, and Mullins. Absent and not voting: Chairman in light of the factors set forth in sections 3(c) and 4 of Greenspan. the BHC Act. Section 3(d) of the BHC Act (12 U.S.C. § JENNIFER J. JOHNSON 1842(d)), the Douglas Amendment, prohibits the Associate Secretary of the Board Board from approving an application by a bank holding company to acquire control of any bank Orders Issued Under Sections 3 and 4 of the located outside the bank holding company's home Bank Holding Company Act state unless such acquisition "is specifically authorized by the statute laws of the State in which such Comerica Incorporated bank is located, by language to that effect and not Detroit, Michigan merely by implication."2 Comerica's home state is Michigan, and California is the home state of the Order Approving Applications to Acquire and Merge subsidiary banks to be acquired.3 Bank Holding Companies Effective January 1, 1991, the California interstate banking statute expressly authorizes bank holding Comerica Incorporated, Detroit, Michigan ("Comer- companies located in other states to acquire existing ica"), a bank holding company within the meaning of California banks and bank holding companies, if there the Bank Holding Company Act (the "BHC Act"), is substantial reciprocity between California law and has applied for the Board's approval under section 3 of the law of the home state of the acquiring out-of-state the BHC Act (12 U.S.C. § 1842) to acquire: bank holding company.4 The laws of Michigan provide (1) Plaza Commerce Bancorp, San Jose, California for similar reciprocal out-of-state acquisitions by ex- ("Plaza Commerce"), and thereby indirectly ac- pressly authorizing out-of-state bank holding compaquire Plaza Bank of Commerce, San Jose, Califor- nies to acquire Michigan banking institutions, if the nia; and laws of the acquiring out-of-state bank holding com- (2) InBancshares, City of Industry, California, and pany's home state permit reciprocal acquisitions by thereby indirectly acquire Bank of Industry, City of Michigan bank holding companies and these laws are Industry, California.1 not unduly restrictive in administering such reciprocity.5 Accordingly, Michigan law meets the substantial Comerica also has applied under section 4 of the BHC reciprocity requirement of California law and Califor- Act to acquire Plaza Commerce's sole nonbanking nia law expressly authorizes the proposed acquisisubsidiary, Plaza Realty Advisors, San Jose, California ("Plaza Realty"), and thereby engage through Plaza Realty in arranging and brokering residential, 2. 12 U.S.C. § 1842(d). 3. A bank holding company's home state is that state in which the commercial, and construction loans, and other extentotal deposits of the bank holding company's subsidiary banks were largest on July 1, 1966, or on the date the bank holding company became a bank holding company, whichever date is later. 4. Cal. Fin. Code §§ 3753, 3756 (West 1989). Substantial reciprocity exists if: 1. In the event that Comerica is unable to acquire all the voting (i) California bank holding companies may acquire banking instishares of Plaza Commerce, Comerica has requested Board approval tutions located in the home state of the acquiring out-of-state to acquire 24.9 percent of its voting shares. The Board has approved bank holding company on terms and conditions substantially the the acquisition by a bank holding company of less than a controlling same as acquisitions made by the acquiring out-of-state bank interest in a bank and Comerica has offered a number of commitments holding company in its home state; and that the Board has previously found helpful in determining that an (ii) California bank holding companies making acquisitions in the investing bank holding company will not be able to exercise a home state of the acquiring out-of-state bank holding company controlling influence over another bank for purposes of the BHC Act. have substantially all the powers and capabilities under the laws See First Community Bancshares, Inc., 77 Federal Reserve Bulletin of the home state of the acquiring out-of-state bank holding 000 (1991) and Board Orders cited therein. company. Cal. Fin. Code § 3751(j) (West 1989). Bank of Industry has a direct investment in a real estate project 5. Mich. Stat. Ann. § 23.710(130b(4)) (Callaghan Supp. 1990). known as Chino Hills pursuant to authority granted by the State of California law does not impose unduly restrictive conditions on California. Comerica has committed to divest this interest within two acquisitions by Michigan bank holding companies and the Michigan years of consummation of this proposal and not to expand the Financial Institutions Bureau has approved Comerica's proposed activities of this project during the two-year period. acquisitions of Plaza Commerce and InBancshares. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

132 Federal Reserve Bulletin • February 1991 tions.6 In light of the foregoing, the Board believes that adverse effect on competition in any relevant banking approval of the proposal is not barred by the Douglas market. Consummation also would not result in a Amendment. significant adverse effect on probable future competi- Comerica is the second largest banking organization tion in any relevant banking market. In addition, the in Michigan, operating four subsidiary banks with total financial and managerial resources and future prosdeposits of $10.8 billion, representing approximately pects of Comerica, Plaza Commerce, InBancshares, 13.2 percent of the total deposits in commercial banks and their subsidiary banks are consistent with apin Michigan.7 Comerica also controls commercial proval. banking organizations in Ohio and Texas. Plaza Com- In considering the convenience and needs of the merce is the 34th largest commercial banking organi- communities to be served, the Board has taken into zation in California, operating a single subsidiary bank account the record of the subsidiary banks of Comerwith deposits of $447 million, representing less than ica under the Community Reinvestment Act one percent of the total deposits in commercial banks (12 U.S.C. § 2901 et seq.) (the "CRA"). The CRA in California. InBancshares is the 80th largest com- requires the federal financial supervisory agencies to mercial banking organization in California, controlling encourage financial institutions to help meet the credit a single subsidiary bank with deposits of $200 million, needs of the local communities in which they operate, representing less than one percent of the total deposits consistent with the safe and sound operation of such in commercial banking organizations in California. institutions. To accomplish this end, the CRA requires Consummation of the proposals would not result in an the appropriate federal supervisory authority to "asadverse effect on the concentration of banking re- sess an institution's record of meeting the credit needs sources in California or Michigan. of its entire community, including low- and moderate- Comerica does not compete directly with either income neighborhoods, consistent with the safe and Plaza Commerce or InBancshares in any banking sound operation of the institution," and to take this record into account in its evaluation of bank holding market. Plaza Commerce and InBancshares compete directly in the San Francisco banking market.8 In that company applications.10 market, Plaza Commerce controls deposits of $447 In this regard, the Board has received comments million and InBancshares controls deposits of $88 from the Community Coalition for Reinvestment, million, each representing less than one percent of the Grand Rapids, Michigan ("Protestant"), that genertotal deposits in commercial banks in the market. ally criticize the record of performance of Comerica Upon consummation of the proposals, the Herfindahl- Bank, N.A. ("Bank"), in meeting the credit needs of Hirschman Index ("HHI") would increase by less low- and moderate-income communities, including than one point to 1732.9 Accordingly, consummation small businesses, in the Grand Rapids area.11 Comerof the proposals would not result in a significantly ica has submitted a detailed response to these comments.12 The Board has carefully reviewed the CRA perfor- 6. Michigan law also requires an out-of-state applicant to agree to mance of Comerica, Plaza Commerce and InBanclimit the interest rate charged for certain consumer loans to Michigan shares and their bank subsidiaries, as well as the residents borrowing within Michigan and to have a satisfactory record Protestant's comments and Comerica's response to under the Community Reinvestment Act. Mich. Stat. Ann. § 23.710(130b(ll) and (12)) (Callaghan Supp. 1990). These require- those comments, in light of the CRA, Board regulaments, however, do not impair the substantial reciprocity of the tions, and the Statement of the Federal Financial Michigan statute and the Office of the California Superintendent of Supervisory Agencies Regarding the Community Re- Banks has confirmed that Michigan law is substantially reciprocal with California law. 7. Deposit data are as of September 30, 1990. State ranking data are as of June 30, 1990. 8. The San Francisco banking market is approximated by the San 10. 12 U.S.C. § 2903. Francisco-Oakland-San Jose RMA adjusted to include the city of 11. Protestants specifically allege the following deficiencies in St. Helena, California. Bank's CRA performance: 9. Under the revised Department of Justice Merger Guidelines, 49 (i) patterns of racially discriminatory lending practices in 1987-88 Federal Register 26,823 (1984), a market in which the post-merger Home Mortgage Disclosure Act data; HHI is above 1000 is considered to be moderately concentrated. In (ii) failure to provide basic banking services and an insufficient such markets, the Department is likely to challenge a merger that number of banking locations; increases the HHI by more than 100 points. The Department has (iii) insufficient marketing of banking services; and informed the Board that a bank merger or acquisition generally will (iv) insufficient residential and home improvement lending. not be challenged (in the absence of other factors indicating anti- 12. Representatives of both Bank and Comerica have met privately competitive effects) unless the post-merger HHI is at least 1800 and with Protestant several times in an effort to clarify the CRA issues the merger increases the HHI by more than 200 points. The Justice presented. Although the parties were unable to resolve all of their Department has stated that the higher than normal HHI thresholds for differences, Comerica has implemented a substantial number of Protscreening bank mergers for anticompetitive effects implicitly recog- estant's suggestions. Bank and Comerica have offered to continue to nize the competitive effect of limited-purpose lenders and other work with Protestant to address their concerns. Other commenters to non-depository financial entities. these applications have withdrawn their comments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 133 investment Act ("Agency CRA Statement").13 The Bank ascertains community credit needs through Agency CRA Statement provides guidance regarding direct forms of community contact. Bank employs its the types of policies and procedures that the supervi- officer call program to gather information on the credit sory agencies believe financial institutions should have needs of low- to moderate-income individuals and in place in order to fulfill their responsibilities under small businesses in the community. As noted below, the CRA on an ongoing basis, and the procedures that Bank officers and employees learn more about comthe supervisory agencies will use during the applica- munity credit needs by participating in community and tions process to review an institution's CRA compli- civic organizations. Bank also has implemented proance and performance. The Agency CRA Statement grams to train bank managers to develop effective also suggests that decisions by agencies to allow relationships with local communities and community financial institutions to expand will be made pursuant organizations. to an analysis of the overall CRA performance of the Bank and its management participate with several institution. community organizations in programs that are de- Initially, the Board notes that the subsidiary banks signed to develop housing and consumer credit for of Plaza Commerce, InBancshares, and Comerica, low- and moderate-income and minority residents including Bank, have received satisfactory ratings of the Grand Rapids area. A senior management from their primary regulators in the most recent ex- official of Bank serves on the Board of the Local aminations of their CRA performance. In this regard, Initiatives Support Coalition, a nonprofit organizathe Agency CRA Statement provides that, while CRA tion that invests in the housing efforts of community examination reports do not provide conclusive evi- development corporations and assists and raises dence of an institution's CRA record, the federal funds for such community development corporasupervisory agencies will accord such reports great tions.18 weight in the applications process.14 The Board also Bank provides basic banking services and credit to notes that, in accordance with the terms of a previous low- and moderate-income individuals in its commu- Board Order, Comerica submits quarterly reports to nity, offering basic checking accounts, savings acthe Federal Reserve Bank of Chicago detailing the counts and check cashing services at prices compara- CRA efforts of Comerica' lead subsidiary bank.15 ble to or lower than its Grand Rapids competitors. In addition, the Board notes that Comerica and its Banking services are also provided from locations subsidiary banks, including Bank, have implemented within low- and moderate-income communities. Two policies, of the types outlined in the Agency CRA of Bank's ten branches in the Grand Rapids area are in Statement, that contribute to an effective CRA pro- downtown Grand Rapids, and Comerica has indicated gram. For example, Comerica has established a pro- that it will investigate the feasibility of placing ATMs gram to supervise and review the CRA programs of its in central city Grand Rapids to better meet the needs subsidiary banks.16 Comerica's vice-chairman, the or- of that community.19 ganization's second-ranking officer, is charged with The record also shows that Bank markets its prod- CRA program oversight responsibility. Comerica has ucts and services through general circulation media. also designated a vice-president to serve as Corporate Comerica has stated that Bank will advertise in news- CRA Corporate Officer and, with a CRA staff, to papers that directly serve the minority community of coordinate the CRA activities of Comerica and its Grand Rapids. In addition, Bank has developed a subsidiary banks.17 bilingual Spanish-English brochure describing Bank's home improvement lending services. Through its own Speaker's Bureau and the Grand Rapids Chamber of 13. 54 Federal Register 13,742 (1989). Commerce, Bank also participates in a series of sem- 14. 54 Federal Register at 13,745. inars and presentations to educate low-income and 15. Comerica Incorporated, 74 Federal Reserve Bulletin 809 (1988). 16. Pursuant to Comerica's CRA policy, each of Comerica's sub- minority individuals and the small business commusidiary banks prepares a quarterly report to Comerica's corporate nity about obtaining business or mortgage financing CRA committee that records and evaluates the reporting bank's CRA efforts. and related products. 17. Comerica's CRA committee, composed of both CRA officers and senior officers in Comerica's substantive lending areas, monitors Comerica's efforts to meet community needs and initiates and reviews CRA policy initiatives. To implement such policy and assist its 18. In addition, Bank provides financial assistance to the Inner City subsidiary banks in meeting their CRA responsibilities, Comerica Christian Federation, a Grand Rapids community organization that provides guidance to each of its subsidiary banks through senior rehabilitates inner-city housing. Bank has also assisted the Grand on-site personnel (or, in the case of Bank, through on-site personnel in Rapids Neighborhood Improvement Program in the development of a each region that Bank serves). In addition, the CRA Statements of consumer mortgage lending pool and a survey concerning basic Comerica's subsidiary banks describe the types of credit offered, the banking needs and services. methods for performing community credit needs, and list the types of 19. The two central city branch locations in Grand Rapids are community projects that the Comerica has funded. located on bus lines and are adjacent to free parking. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

134 Federal Reserve Bulletin • February 1991 The Board notes that, in the past, there have been Comerica has also applied to acquire all the voting some disparities in the residential mortgage and shares of Plaza Realty, and through Plaza Realty home improvement loan data for Bank's lending to engage in arranging and brokering residential, comborrowers in low- and moderate-income areas.20 mercial, and construction loans, and other exten- However, Comerica has stated that it recognizes sions of credit. The Board has determined that such these disparities and has taken steps to address them. activities are permissible for bank holding companies In order to better meet the mortgage and home under section 225.25(b)(1) of the Board's Regulaimprovement credit needs of its community, Comer- tion Y (12 C.F.R. 225.25(b)(1). ica has introduced several credit products specifi- In light of the facts of record, the Board concludes cally appropriate to low- and moderate-income bor- that Comerica's acquisition of Plaza Realty would rowers in Grand Rapids. These include home not significantly affect competition in any relevant improvement and home equity loans for land con- market. Furthermore, there is no evidence in the tract holders, fixed rate term home equity loans, and record to indicate that approval of this proposal a secured credit card.21 Comerica has also liberalized would result in any significantly adverse effects, such loan underwriting standards applicable to conven- as undue concentration of resources, decreased or tional mortgage products for low- and moderate- unfair competition, conflicts of interests, or unsound income borrowers.22 banking practices. Accordingly, the Board has deter- For the foregoing reasons, and based upon all of mined that the balance of the public interest factors it the facts of record, the Board concludes that the must consider under section 4(c)(8) of the BHC Act is records of performance under the CRA of Comerica favorable and consistent with approval. and its subsidiary banks, including steps taken by Based on the foregoing and other facts of record, the Comerica to enhance its record of performance under Board has determined that the applications should be, the CRA, are consistent with approval of these and hereby are, approved. In granting this approval, applications. Accordingly, the Board concludes that the Board has relied upon Comerica's commitments convenience and needs considerations are consistent and representations, and this approval is conditioned with approval.23 upon Comerica obtaining all required State approvals. The transactions shall not be consummated before the thirtieth calendar day following the effective date of 20. In the "Report on Loan Discrimination" submitted to Congress this Order, or later than three months after the effecby the Board on October 13, 1989 pursuant to section 1220 of the tive date of this Order, unless such period is extended Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (the "Report"), the Board generally reviewed various public for good cause by the Board or by the Federal Reserve studies of mortgage lending in Atlanta, Cleveland, Detroit and Boston. Bank of Chicago, acting pursuant to delegated author- The Report noted that, while these studies appeared to indicate that ity. The determination as to the nonbanking activities disparities existed in home mortgage lending between minority and non-minority areas, they did not draw definitive conclusions about the approved in this case is subject to all of the conditions existence or extent of racial discrimination in mortgage lending and contained in Regulation Y, including those in sections did not account for certain factors other than discrimination in lending that might account for these disparities—including differences in 225.4(d) and 225.23(b)(3) (12 C.F.R. 225.4(d) and demand for mortgage loans, differences in the types of mortgage 225.23(b)(3)), and to the Board's authority to require products offered by depository and nondepository institutions, and such notification or termination of the activities of a the tendency of nondepository lenders to dominate the minority mortgage loan market. holding company or any of its subsidiaries as the 21. In 1989, Comerica made 23 home improvement or home equity Board finds necessary to assure compliance with, or to loans totalling $312,000 in the central city of Grand Rapids identified by the Protestant. In the first six months of 1990, Comerica has made prevent evasion of, the provisions and purposes of the approximately the same number and amount of such loans in the BHC Act and the Board's regulations and orders central city (24 for $299,000) as it made in all of 1989. issued thereunder. 22. In 1989, Comerica made 27 loans totalling $2.3 million in the central city of Grand Rapids defined by the Protestant, an increase of By order of the Board of Governors, effective $1 million or 87 percent over Comerica's lending in this area in 1988. December 3, 1990. Comerica projects that in 1990, 34 loans totalling $1.7 million will be made on properties located in the central city. 23. Protestant also has requested that the Board hold a public Voting for this action: Chairman Greenspan and Governors hearing or meeting to assess further facts surrounding Bank's CRA Seger, Angell, Kelley, LaWare, and Mullins. performance. Generally under the Board's rules, the Board may, in its discretion, hold a public hearing or meeting on an application to clarify factual issues related to the application and to provide an opportunity JENNIFER J. JOHNSON for testimony, if appropriate. 12 U.S.C. §§ 262.3(e) and 262.25.(d). Associate Secretary of the Board The Board has carefully considered the Protestant's request for a public meeting or hearing in this case. In the Board's view, the parties have had ample opportunity to present submissions, and have submitted substantial written comments that have been considered by the these applications, or is otherwise warranted in this case. Accord- Board. In light of these facts, the Board has determined that a public ingly, Protestant's request for a public meeting or hearing on these meeting or hearing is not necessary to clarify the factual record in applications is hereby denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 135 Firstar Corporation Effective January 1, 1991, the Iowa regional inter- Milwaukee, Wisconsin state banking statute expressly authorizes regional bank holding companies, defined as bank holding Order Approving Acquisition of a Bank Holding companies located in the mid western region, to ac- Company and Banking and Nonbanking Subsidiaries quire Iowa banks or bank holding companies.5 Firstar is located in a state within the designated Firstar Corporation, Milwaukee, Wisconsin midwestern region, and thus is authorized to acquire ("Firstar"), a bank holding company within the an Iowa bank.6 In light of the foregoing, the Board meaning of the Bank Holding Company Act ("BHC believes that approval of the proposal is not barred Act"), has applied for the Board's approval under by the Douglas Amendment.7 section 3(a)(3) of the BHC Act (12 U.S.C. Firstar operates 42 banking subsidiaries located in § 1842(a)(3)) to acquire Banks of Iowa, Inc., Des Wisconsin, Minnesota, Illinois and Arizona. Firstar Moines, Iowa ("BOI"), and thereby indirectly ac- is the largest banking organization in Wisconsin, quire BOI's subsidiary banks.1 Firstar also has ap- operating 26 subsidiary banks with total deposits of plied for the Board's approval under section 4(c)(8) approximately $5.5 billion, representing approxiof the BHC Act (12 U.S.C. § 1843(c)(8)) to acquire mately 14.7 percent of the total deposits in commerthe nonbanking subsidiaries of BOI.2 cial banks in the state.8 BOI, which operates 12 Notice of the applications, affording interested banking subsidiaries in Iowa, is the second largest persons an opportunity to submit comments, has banking organization in the state, controlling approxbeen duly published (55 Federal Register 38,581 imately $2.1 billion in deposits, representing approx- (1990)). The time for filing comments has expired, imately 7.7 percent of the total deposits in commerand the Board has considered the applications and all cial banks in the state. Consummation of this comments received in light of the factors set forth in proposal would not result in an adverse effect on the sections 3(c) and 4(c)(8) of the BHC Act. concentration of banking resources in Wisconsin or Iowa. Section 3(d) of the BHC Act, the Douglas Amendment, prohibits the Board from approving an appli- Firstar does not compete directly with BOI in any cation by a bank holding company to acquire control banking market. Accordingly, consummation of this of any bank located outside of the bank holding proposal would not result in a significantly adverse company's home state, unless such acquisition is effect on competition in any relevant banking market. "specifically authorized by the statute laws of the Consummation also would not result in a significantly State in which [the] bank is located, by language to adverse effect on probable future competition in any that effect and not merely by implication."3 Firstar's relevant banking market. home state is Wisconsin and BOI's home state is The financial and managerial resources and future Iowa.4 prospects of Firstar, BOI, and their subsidiary banks 5. Iowa Stat. Ann. §§ 524.1852 and 524.1851.9 (West 1990). "Mid- 1. BOI's subsidiary banks are: United Bank & Trust, Ames, Iowa; western region" means the states of Illinois, Iowa, Minnesota, Mis- First National Bank, Burlington, Iowa; Cedar Falls Trust & Savings souri, Nebraska, South Dakota and Wisconsin. Iowa Stat. Ann. §§ Bank, Cedar Falls, Iowa; Merchants National Bank of Cedar Rapids, 524.1851.6. Iowa law also incorporates by reference the Douglas Cedar Rapids, Iowa; Council Bluffs Savings Bank, Council Bluff, Amendment's test for determining the state in which the regional bank Iowa; First Bank, National Association, Davenport, Iowa; Valley holding company is located. Iowa Stat. Ann. § 524.1851.10. National Bank, Des Moines, Iowa; Central Trust and Savings Bank, 6. However, Iowa law prohibits acquisitions by regional bank Eldridge, Iowa; Henry County Savings Bank, Mount Pleasant, Iowa; holding companies under the following circumstances: Union Bank and Trust Company, Ottumwa, Iowa; and Montgomery (i) the acquiring regional bank holding company would have, in County National Bank of Red Oak, Red Oak, Iowa. the aggregate, more than 35 percent of the sum of the total time 2. Firstar proposes to acquire the following nonbanking subsidiaries and demand deposits in all state and national banks and savings of BOI, all located in Des Moines, Iowa: Banks of Iowa Credit and loan associations located in Iowa; Corporation ("BICC") and through BICC engage in purchasing and (ii) all existing bank subsidiaries of the acquiring regional bank handling nonperforming loans; Banks of Iowa Capital Corporation holding company do not satisfy applicable capital requirements; ("BICAP") and through BICAP engage in asset liquidation; and (iii) the acquiring regional bank holding company has not been in Banks of Iowa Computer Services, Inc. ("BICS") and through BICS existence for at least three years; engage in providing data processing services and facilities for BOI, its (iv) the Iowa bank holding company to be acquired has not been subsidiary banks and nonaffiliated financial institutions. These activ- in existence for at least three years; and ities are authorized for bank holding companies pursuant to sections (v) each of the subsidiary banks of the Iowa bank holding 225.25(b)(1) and (b)(7) of the Board's Regulation Y (12 C.F.R. company to be acquired has not been in existence for at least five 225.25(b)(1) and (b)(7)). years. Iowa Stat. Ann. §§ 524.1802.2 and 524.1855. In light of the 3. 12 U.S.C. § 1842(d). facts of record, the Board concludes that none of these circum- 4. A bank holding company's home state is that state in which the stances prohibit the proposed transaction. operations of the bank holding company's banking subsidiaries were 7. The Office of the Iowa Superintendent of Banking has indicated principally conducted on July 1, 1966, or the date on which the that the proposed acquisition is authorized under Iowa law. company became a bank holding company, whichever is later. 8. All banking data are as of December 31, 1989. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

136 Federal Reserve Bulletin • February 1991 are consistent with approval. The Board also finds Orders Issued Under Bank Merger Act that considerations relating to the convenience and needs of the communities to be served are consistent Plaza Merger Company with approval. Miami, Florida Firstar has also applied, pursuant to section 4(c)(8) of the BHC Act, to acquire three nonbanking subsid- Plaza Bank of Miami iaries of BOI, BICC, BICAP and BICS. The Board Miami, Florida has determined by regulation that each of these activities is permissible for bank holding companies Order Approving Merger of Banks under section 4(c)(8) of the BHC Act and Firstar proposes to conduct these activities in accordance Plaza Merger Company, Miami, Florida, has applied with the Board's regulations. under section 18(c) of the Federal Deposit Insurance In light of the facts of record, the Board concludes Act (12 U.S.C. § 1828(c)) (the "Bank Merger Act"), that Firstar's acquisition of BICC, BICAP and BICS to merge with and into Plaza Bank of Miami, Miami, would not significantly affect competition in any Florida ("Plaza Bank"), a state member bank.1 Plaza relevant market. Furthermore, there is no evidence Merger Company also has applied for membership in in the record to indicate that consummation of this the Federal Reserve System pending consummation of proposal is likely to result in any significantly ad- the proposed merger.2 verse effects, such as undue concentration of re- Notice of these applications, affording interested sources, decreased or unfair competition, conflicts of persons an opportunity to submit comments, has been interests, or unsound banking practices. Accord- given in accordance with the Bank Merger Act and the ingly, the Board has determined that the balance of Board's Rules of Procedure (12 C.F.R. 262.3(b)). As public interest factors it must consider under section required by the Bank Merger Act, reports on the 4(c)(8) of the BHC Act is favorable and consistent competitive effects of the transaction were requested with approval. from the United States Attorney General, the Office of Based on the foregoing and other facts of record, the Comptroller of the Currency, and the Federal the Board has determined that the applications Deposit Insurance Corporation. The time for filing should be, and hereby are, approved. This approval comments has expired, and the Board has considered is conditioned, however, upon Firstar obtaining all the merger application and all comments received in required State approvals. The transaction shall not light of the factors set forth in section 18(c) of the Bank be consummated before the thirtieth calendar day Merger Act. following the effective date of this Order, or later Plaza Bank is one of the smaller commercial banking than three months after the effective date of this organizations in Florida, controlling total deposits of Order, unless such period is extended for good cause $46.8 million, representing less than one percent of by the Board or by the Federal Reserve Bank of total deposits in commercial banks in the state.3 Plaza Chicago, pursuant to delegated authority. The deter- Merger Company has been created solely to facilitate mination as to Firstar's nonbanking activities is the acquisition by its shareholders of all the voting subject to all of the conditions contained in the shares of Plaza Bank, and it is a shell non-operating Board's Regulation Y, including those in sections institution. The merger of Plaza Merger Company with 225.4(d) and 225.23(b)(3) (12 C.F.R. 225.4(d) and and into Plaza Bank will not have a significantly 225.23(b)(3)), and to the Board's authority to require adverse effect on competition or increase the concensuch modification or termination of the activities of a tration of banking resources in any relevant banking holding company or any of its subsidiaries as the market. Board finds necessary to assure compliance with, or prevent evasions of, the provisions and purposes of the BHC Act and the Board's regulations and orders 1. Plaza Bank will be the surviving bank, and will keep its name, issued thereunder. title, and charter. Plaza Bank, currently a state member bank, will By order of the Board of Governors, effective remain a member of the Federal Reserve System. 2. In connection with this transaction, the shareholders of Plaza December 14, 1990. Merger Company have filed a notice under the Change in Bank Control Act (12 U.S.C. § 1817(j)) to acquire 100 percent of the voting shares of Plaza Bank (55 Federal Register 31,107 (1990)). The merger Voting for this action: Chairman Greenspan and Governors and membership applications that are the subject of this Order have Seger, Angell, Kelley, LaWare, and Mullins. been filed to facilitate these shareholders' acquisition of Plaza Bank. Concurrently with this Order, the Board has determined not to disapprove the Change in Bank Control Act notice filed by the Plaza JENNIFER J. JOHNSON Merger Company shareholders. Associate Secretary of the Board 3. Banking data are as of June 30, 1990. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 137 The financial and managerial resources of Plaza Board has determined that the applications should be, Bank, and considerations relating to the convenience and hereby are, approved. This transaction shall not and needs of the community to be served, are consis- be consummated before the thirtieth day following the tent with approval. Based upon the foregoing and effective date of this Order, or later than three months other considerations reflected in the record, the Board after the effective date of this Order, unless such believes that consummation of the transaction would period is extended for good cause by the Board or by be consistent with the public interest. the Federal Reserve Bank of Atlanta, pursuant to Plaza Merger Company also has applied under sec- delegated authority. tion 9 of the Federal Reserve Act (12 U.S.C. § 321 By order of the Board of Governors, effective et seq.) for membership in the Federal Reserve System December 19, 1990. pending consummation of the contemplated merger. The Board has considered the factors it is required to Voting for this action: Governors Seger, Angell, Kelley, consider when approving applications for membership LaWare, and Mullins. Absent and not voting: Chairman pursuant to section 9 of the Federal Reserve Act Greenspan. (12 U.S.C. § 322) and finds those factors consistent with approval. JENNIFER J. JOHNSON Based on the foregoing and other facts of record, the Associate Secretary of the Board ORDERS ISSUED UNDER THE FINANCIAL INSTITUTIONS REFORM, RECOVERY, AND ENFORCEMENT ACT CFIRREA ORDERS'') Recent orders have been issued by the Staff Director of the Division of Banking Supervision and Regulation and the General Counsel 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. Acquired Surviving Approval Bank Holding Company Thrift Bank(s) Date American Bancshares of First America Savings American State Bank, December 7, 1990 Arkansas, Inc., Bank, F.S.B., Charleston, Charleston, Arkansas Fort Smith, Arkansas Arkansas (Albert Pike Branch) Arvest Bank Group, Inc., First America Savings First National Bank December 7, 1990 Bentonville, Arkansas Bank, F.S.B., of Siloam Springs, Fort Smith, Arkansas Siloam Springs, (Siloam Springs Arkansas Branch) BankAmerica Corporation, Benjamin Franklin Seattle First December 28, 1990 San Francisco, California Federal Savings & National Bank, Seafirst Corporation, Loan Association, Seattle, Washington Seattle, Washington Portland, Oregon BankAmerica Corporation, Frontier Savings Bank of America December 14, 1990 San Francisco, California Association, Nevada, Las Vegas, Nevada Reno, Nevada Barnett Banks, Inc., Haven Federal Savings Barnett Bank of Polk December 7, 1990 Jacksonville, Florida and Loan Association, County, F.A., Lakeland, Florida Winter Haven, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

138 Federal Reserve Bulletin • February 1991 FIRREA Orders—Continued Acquired Surviving Approval Bank Holding Company Thrift Bank(s) Date Boatmen's Bancshares, Inc., Community Federal The Boatmen's December 14, 1990 St. Louis, Missouri Savings and Loan National Bank of Association, St. Louis, St. Louis, Missouri St. Louis, Missouri Bright Financial Services, Inc., Hometown Federal Bright National Bank, December 14, 1990 Flora, Indiana Savings Bank, Flora, Indiana Delphi, Indiana (Burlington, Delphi, Lafay ette-Greenbu sh, and Rossville Branches) Business Bank of America, Inc., First Federal Savings Citizens Bank and December 14, 1990 Wichita, Kansas Bank of Kansas, Trust Company, Wellington, Kansas Abilene, Kansas (Wichita Branch) Carolina First Corporation, American Federal Bank, Carolina First Bank, December 28, 1990 Greenville, South Carolina F.S.B., Greenville, South Greenville, South Carolina Carolina (2 Branches) Emprise Financial First Federal Savings Emprise Bank, N.A., December 14, 1990 Corp.—Hutchinson, Bank of Kansas, Hutchinson, Wichita, Kansas Wellington, Kansas Kansas (Lindsborg Branch) First Citizens BancShares, Inc., Mutual Savings and Loan First-Citizens Bank & December 14, 1990 Raleigh, North Carolina Association, Inc., Trust Company, Charlotte, North Raleigh, North Carolina Carolina First Commercial Corporation, First America Savings First National Bank December 7, 1990 Little Rock, Arkansas Bank, F.S.B., of Russellville, Fort Smith, Arkansas Russellville, (Russellville Branch) Arkansas Lafayette Bancorporation, Hometown Federal Lafayette Bank and December 14, 1990 Lafayette, Indiana Savings Bank, Trust Company, Delphi, Indiana Lafayette, Indiana (Brookston and Lafayette-Teal Road Branches) FirsTier Savings Bank, Nebraska Bancorporation, Inc., Alliance National December 14, 1990 Omaha, Nebraska Alliance, Nebraska Bank and Trust Company, Alliance, Nebraska Ozark Bancshares, First America Savings Bank of Ozark, December 7, 1990 Ozark, Arkansas Bank, F.S.B., Ozark, Arkansas Fort Smith, Arkansas (Ozark Branch) PNC Financial Corp., First Federal Savings and Pittsburgh National December 28, 1990 Pittsburgh, Pennsylvania Loan Association of Bank, Pittsburgh, Pittsburgh, Pittsburgh, Pennsylvania Pennsylvania Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 139 FIRREA Orders—Continued Acquired Surviving Approval Bank Holding Company Thrift Bank(s) Date Simmons First National First America Savings Simmons First December 7, 1990 Corporation, Bank, F.S.B., National Bank, Pine Bluff, Arkansas Fort Smith, Arkansas Pine Bluff, (Bella Vista, Fort Arkansas Smith-South, Rogers and Springdale Branches) St. Mary Holding Corporation, Terrebonne Savings and The St. Mary Bank & December 7, 1990 Franklin, Louisiana Loan Association, Trust Co., Houma, Louisiana Franklin, Louisiana Tescott Bancshares, Inc., First Federal Savings The Bank of Tescott, December 14, 1990 Tescott, Kansas Bank of Kansas, Tescott, Kansas Wellington, Kansas (Salina Branch) Vista Bancorporation, First America Savings Citizens Bank & December 7, 1990 Van Buren, Arkansas Bank, F.S.B., Trust Co., Fort Smith, Arkansas Van Buren, (Van Buren and Alma Arkansas Branches) West-Ark Bancshares, Inc., First American Savings Arkansas State Bank, December 7, 1990 Clarksville, Arkansas Bank, F.S.B., Clarksville, Fort Smith, Arkansas Arkansas (Booneville Branch) 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 Applicant(s) Bank(s) ^date^ Central Bancshares of the South, Inc., Plaza National Bank, December 20, 1990 Birmingham, Alabama Dallas, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

140 Federal Reserve Bulletin • February 1991 Section 4 Effective Applicant(s) Bank(s) date BankAmerica Corporation, BAN Interim Federal Savings Bank, December 14, 1990 San Francisco, California Las Vegas, Nevada Barnett Banks, Inc., Barnett Federal Savings and Loan December 6, 1990 Jacksonville, Florida Association, F.A., Winter Haven, Florida First Commercial Corporation, First Commercial Savings and Loan, December 7, 1990 Little Rock, Arkansas Russellville, Arkansas Provident Bancorp, Inc., Suburban Federal Savings and Loan December 21, 1990 Cincinnati, Ohio Association, Covington, Kentucky Simmons First National Corporation, Simmons First Federal Savings and December 7, 1990 Pine Bluff, Arkansas Loan Association, Pine Bluff, Arkansas U.S. Bancorp, Credco of Washington, Inc., December 7, 1990 Portland, Oregon Solana Beach, California APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Section 3 Reserve Effective Applicant(s) Bank(s) Bank date Arvada Bank Holding Company, The First National Bank Kansas City November 30, 1990 Arvada, Colorado of Arvada, Arvada, Colorado B & G Investment Company, First State Bank, Dallas November 30, 1990 San Antonio, Texas Bandera, Texas CBT Corporation, Inc., Citizens Bank and Trust Minneapolis November 29, 1990 Big Timber, Montana Company, Big Timer, Montana Chandler Bancshares, Inc., State Bank of Chandler, Minneapolis November 29, 1990 Chandler, Minnesota Chandler, Minnesota Clear Lake Investors, Inc., Clear Lake Bank and Chicago December 18, 1990 Clear Lake, Iowa Trust Company, Clear Lake, Iowa Community Trust Financial Community Trust Bank, Atlanta November 26, 1990 Services Corporation, Hiram, Georgia Hiram, Georgia First Bancorp of Durango, Inc., First National Bank of Kansas City November 28, 1990 Durango, Colorado Durango, Durango, Colorado Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 141 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank date First Belleville Bancshares, Inc., Scandia State Bank, Kansas City December 19, 1990 Belleville, Kansas Scandia, Kansas First Commerce Bancshares, First National McCook Kansas City December 14, 1990 Inc., Company, Lincoln, Nebraska McCook, Nebraska Stuart Family Partnership, Lincoln, Nebraska Catherine Stuart Schmoker Family Partnership, Lincoln, Nebraska James Stuart, Jr. Family Partnership, Lincoln, Nebraska The Scott Stuart Family Partnership, Lincoln, Nebraska First Michigan Bank Maynard-Allen State Chicago November 23, 1990 Corporation, Bank, Holland, Michigan Portland, Michigan First National BancShares, Inc., First National Bank & Minneapolis December 12, 1990 Williston, North Dakota Trust Co. of Williston, Willi ston, North Dakota First of Searcy, Inc., Citizens Bancshares of St. Louis November 30, 1990 Searcy, Arkansas Beebe, Inc., Beebe, Arkansas First State Bancshares, Inc., First State Bank of St. St. Louis November 29, 1990 Farmington, Missouri Francois County, Bonne Terre, Missouri Fourth Financial Corporation, American State Bank and Kansas City November 30, 1990 Wichita, Kansas Trust Company, Great Bend, Kansas FSB Bancorp, Inc., Farmers State Bank Chicago December 7, 1990 Pound, Wisconsin of Pound, Pound, Wisconsin Geneva State Company, The Geneva State Bank, Kansas City December 13, 1990 Geneva, Nebraska Geneva, Nebraska Glasgow Bancshares Bowling Green Bank & St. Louis November 28, 1990 Corporation, Trust Company, Glasgow, Kentucky National Association, Bowling Green, Kentucky Harleysville National Citizens National Bank Philadelphia November 27, 1990 Corporation, of Lansford, Harleysville, Pennsylvania Lansford, Pennsylvania Johnson Heritage Bancorp, Ltd. Biltmore Bank Corp., Chicago November 27, 1990 Racine, Wisconsin Phoenix, Arizona Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

142 Federal Reserve Bulletin • February 1991 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank date Jones Holding Company, Ltd., Albany Bancshares, Inc., Dallas December 14, 1990 Albany, Texas Albany, Texas First National Bank of Albany, Albany, Texas Key Centurion Bancshares, Inc., Spectrum Financial Richmond December 13, 1990 Charleston, West Virginia Corporation, Wheeling, West Virginia Keystone Financial, Inc., Ambassador Bank of Philadelphia November 28, 1990 Harrisburg, Pennsylvania the Commonwealth (In Organization), Allentown, Pennsylvania Krause Financial, Inc., First National Bank in Minneapolis November 26, 1990 Winnebago, Minnesota Winnebago, Winnebago, Minnesota Mascouten Bancorp, Inc., The First National Bank Chicago November 30, 1990 Beardstown, Illinois of Beardstown, Beardstown, Illinois Morton Financial Corporation, South Plains National Dallas November 30, 1990 Morton, Texas Bank, Levelland, Texas Mountaineer Bankshares of West The First National Bank Richmond December 18, 1990 Virginia, Inc., of Cameron, Martinsburg, West Virginia Cameron, West Virginia Peotone Bancorp, Inc., Founders Bancorp, Inc., Chicago December 18, 1990 Peotone, Illinois Scottsdale, Arizona Terrapin Bancorp, Inc., Elizabeth, Illinois Philippine National Bank, Century Holding San Francisco November 19, 1990 Manila, Philippines Corporation, San Francisco, California Pinnacle Banc Group, Inc., The Berwyn National Chicago December 14, 1990 Oak Brook, Illinois Bank, Berwyn, Illinois SCB Financial Corporation, Lull and Rush Agency, Kansas City November 30, 1990 Smith Center, Kansas Lebanon, Kansas Scott County Bancorp, Inc., Founders Bancorp, Inc., St. Louis December 18, 1990 Winchester, Illinois Scottsdale, Arizona SNB Financial Corporation, Summerville National Richmond December 7, 1990 Summerville, South Carolina Bank, Summerville, South Carolina South Florida Bank Holding South Florida Bank, Atlanta November 21, 1990 Corporation, Fort Myers, Florida Fort Myers, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 143 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank date Sterling Bancorp, Sterling Bank & Trust Richmond November 27, 1990 Baltimore, Maryland Company, Baltimore, Maryland Sun Financial Corporation, E Corporation, St. Louis December 18, 1990 Earth City, Missouri Earth City, Missouri Valley Bancorporation, Exchange State Bank of Chicago November 30, 1990 Appleton, Wisconsin LaCrosse, LaCrosse, Wisconsin Waterford Bancshares, Inc., Waterford Bank, Chicago November 28, 1990 Waterford, Wisconsin Waterford, Wisconsin Wells Fargo and Company, Citizens Holdings, San Francisco November 30, 1990 San Francisco, California Anaheim, California Section 4 Nonbanking Reserve Effective Applicant(s) Activity/Company Bank date Banque Nationale de Paris, BAII Capital Markets, San Francisco December 7, 1990 Paris, France Inc., New York, New York Caisse Nationale de Credit Locasuez America, Inc., Chicago November 23, 1990 Agricole, S.A., New York, New York Paris, France NCNB Corporation, NCNB Life Insurance Richmond December 20, 1990 Charlotte, North Carolina Company, Dallas, Texas NCNB Texas Life Insurance Company, Dallas, Texas Nebraska Bancorporation, Inc. ANB Savings Bank, Kansas City December 14, 1990 Alliance, Nebraska F.S.B., Alliance, Nebraska TSB Bancorp, Inc., Georgia Home Lending Atlanta November 21, 1990 Woodland, Georgia Corporation, Peachtree City, Georgia Valley National Bancorp, Mayflower Financial New York December 14, 1990 Wayne, New Jersey Corporation, Livingston, New Jersey Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

144 Federal Reserve Bulletin • February 1991 Sections 3 and 4 Nonbanking Reserve Effective Applicant(s) Activity/Company Bank date Johnson International Bancorp, Johnson Heritage Chicago November 27, 1990 Ltd., Bancorp, Ltd., Racine, Wisconsin Racine, Wisconsin Johnson Heritage Trust Company, Racine, Wisconsin 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 American Trust and Savings, Midland Savings Bank, Chicago December 14, 1990 Dubuque, Iowa FSB, Des Moines, Iowa Bank of Lakeview, Morley Branch of Chicago November 30, 1990 Lakeview, Michigan Independent Bank - West Michigan, Rockford, Michigan The Ohio Bank, The Citizens Community Cleveland November 29, 1990 Findlay, Ohio Bank, Mt. Blanchard, Ohio PENDING CASES INVOLVING THE BOARD OF Citicorp v. Board of Governors, No. 90-4124 (2d GOVERNORS Circuit, filed October 4, 1990). Petition for review of Board order requiring Citicorp to terminate certain insurance activities conducted pursuant to Delaware This list of pending cases does not include suits law by an indirect nonbank subsidiary. The Delaagainst the Federal Reserve Banks in which the Board ware Bankers Association and the State of Delaware of Governors is not named a party. have intervened on behalf of petitioners, and insurance trade associations have intervened on behalf of the Board in the action. State of Illinois v. Board of Governors, No. 90-C-6863 (N.D. Illinois, filed November 27, 1990). Action Stanley v. Board of Governors, No. 90-3183 (7th seeking to restrain the Board from providing state Circuit, filed October 3, 1990). Petition for review of examination materials in response to a Congres- Board order imposing civil money penalties on five sional subpoena. On December 12, 1990, the court former bank holding company directors. issued a temporary restraining order preventing the Sibille v. Federal Reserve Bank of New York and Board and the Chicago Reserve Bank from provid- Board of Governors, No. 90-CIV-5898 (S.D. New ing documents relating to the state examination in York, filed September 12, 1990). Appeal of denial of response to the subpoena. Freedom of Information Act request. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 145 Kuhns v. Board of Governors, No. 90-1398 (D.C. Cir., Consumers Union of U.S., Inc. v. Board of Goverfiled July 30, 1990). Petition for review of Board nors, No. 90-5186 (D.C. Cir., filed June 29, 1990). order denying request for attorney's fees pursuant Appeal of District Court decision upholding amendto Equal Access to Justice Act. Oral argument is ments to Regulation Z implementing the Home scheduled for February 15, 1991. Equity Loan Consumer Protection Act. Oral argu- May v. Board of Governors, No. 90-1316 (D.C. Cir., ment scheduled for February 20, 1991; the Board's filed July 27, 1990). Appeal of District Court order brief was filed December 14, 1990. dismissing plaintiffs action under Freedom of Infor- Synovus Financial Corp. v. Board of Governors, No. mation and Privacy Acts. Board's motion for sum- 89-1394 (D.C. Cir., filed June 21, 1989). Petition for mary affirmance filed October 12, 1990. review of Board order permitting relocation of a bank holding company's national bank subsidiary Burke v. Board of Governors, No. 90-9509 (10th from Alabama to Georgia. Oral argument was held Circuit, filed February 27, 1990). Petition for review on October 11, 1990. On December 10, the Justice of Board orders assessing civil money penalties and Department filed a brief on behalf of the Board and issuing orders of prohibition. the Office of the Comptroller of the Currency in BancTEXAS Group, Inc. v. Board of Governors, No. response to a request from the court regarding an CA 3-90-0236-R (N.D. Texas, filed February 2, issue in the case. 1990). Suit for preliminary injunction enjoining the MCorp v. Board of Governors, No. 89-2816 (5th Cir., Board from enforcing a temporary order to cease filed May 2, 1989). Appeal of preliminary injunction and desist requiring injection of capital into plainagainst the Board enjoining pending and future tiffs subsidiary banks under the Board's source of enforcement actions against a bank holding comstrength doctrine. District court granted preliminary pany now in bankruptcy. On May 15, 1990, the Fifth injunction on June 5, 1990, in light of MCorp v. Circuit vacated the district court's order enjoining Board of Governors, 900 F.2d 852 (5th Cir. 1990). the Board from proceeding with enforcement ac- Rutledge v. Board of Governors, No. 90-7599 (11th tions based on section 23A of the Federal Reserve Cir., filed August 21, 1990). Appeal of district court Act, but upheld the district court's order enjoining grant of summary judgment for defendants in tort such actions based on the Board's source-ofsuit challenging Board and Reserve Bank supervi- strength doctrine. 900 F.2d 852 (5th Cir. 1990). On sory actions. Board's brief filed November 27, 1990. December 10, the Solicitor General filed a petition Kaimowitz v. Board of Governors, No. 90-3067 (11th for certiorari in the Supreme Court on behalf of the Cir., filed January 23, 1990). Petition for review of Board, and MCorp filed a cross-petition for certio- Board order dated December 22, 1989, approving rari. application by First Union Corporation to acquire MCorp v. Board of Governors, No. CA3-88-2693 Florida National Banks. Petitioner objects to ap- (N.D. Tex., filed October 10, 1988). Application for proval on Community Reinvestment Act grounds. injunction to set aside temporary cease and desist Babcock and Brown Holdings, Inc. v. Board of Gov- orders. Stayed pending outcome of MCorp v. Board ernors, No. 89-70518 (9th Cir., filed November 22, of Governors, 900 F.2d 852 (5th Cir. 1990). 1989). Petition for review of Board determination White v. Board of Governors, No. CU-S-88-623-RDF that a company would control a proposed insured (D. Nev., filed July 29, 1988). Age discrimination bank for purposes of the Bank Holding Company complaint. Board's motion to dismiss or for sum- Act. Awaiting scheduling of oral argument. mary judgment pending. FINAL ENFORCEMENT ORDERS ISSUED BY THE Park, Illinois, and Bruce Madden and Joe A. Pruess, BOARD OF GOVERNORS institution-affiliated parties of the First State Bank of Maple Park, Maple Park, Illinois. First State Bank of Maple Park Maple Park, Illinois Nathaniel L. Singleton New York, New York The Federal Reserve Board announced on December 27, 1990, the issuance of Cease and Desist Orders The Federal Reserve Board announced on Decemagainst the First State Bank of Maple Park, Maple ber 6, 1990, the issuance of an Order of Prohibition Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

146 Federal Reserve Bulletin • February 1991 against Nathaniel L. Singleton, a former officer of the Smyrna Bank & Trust Co. Manufacturers Hanover Trust Company, New York, Smyrna, Georgia New York. The Federal Reserve Board announced on December 28, 1990, the execution of a Written Agreement between the Federal Reserve Bank of Atlanta, the WRITTEN AGREEMENTS APPROVED BY FEDERAL Commissioner of the Department of Banking and RESERVE BANKS Finance of the State of Georgia, and the Smyrna Bank & Trust Co., Smyrna, Georgia. UBAF Arab American Bank Citizens First Bancorp, Inc. New York, New York Glen Rock, New Jersey The Federal Reserve Board announced on Decem- The Federal Reserve Board announced on Decem- ber 28, 1990, the execution of a Written Agreement ber 28, 1990, the execution of a Written Agreement between the Federal Reserve Bank of New York and between the Federal Reserve Bank of New York and the UBAF Arab American Bank, New York, New Citizens First Bancorp, Inc., Glen Rock, New Jersey. York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics CONTENTS WEEKLY REPORTING COMMERCIAL BANKS Assets and liabilities Domestic Financial Statistics A19 All reporting banks A20 Banks in New York City A21 Branches and agencies of foreign banks MONEY STOCK AND BANK CREDIT A22 Gross demand deposits—individuals, partnerships, and corporations A3 Reserves, money stock, liquid assets, and debt measures FINANCIAL MARKETS A4 Reserves of depository institutions, Reserve Bank credit A23 Commercial paper and bankers dollar A5 Reserves and borrowings—Depository acceptances outstanding institutions A23 Prime rate charged by banks on short-term A6 Selected borrowings in immediately available business loans funds—Large member banks A24 Interest rates—money and capital markets A25 Stock market-Selected statistics A26 Selected financial institutions —Selected assets POLICY INSTRUMENTS and liabilities A7 Federal Reserve Bank interest rates FEDERAL FINANCE A8 Reserve requirements of depository institutions A9 Federal Reserve open market transactions A28 Federal fiscal and financing operations A29 U.S. budget receipts and outlays A30 Federal debt subject to statutory limitation FEDERAL RESERVE BANKS A30 Gross public debt of U. S. Treasury—Types and ownership A10 Condition and Federal Reserve note statements A31 U.S. government securities All Maturity distribution of loan and security dealers—Transactions holdings A32 U.S. government securities dealers —Positions and financing A3 3 Federal and federally sponsored credit agencies—Debt outstanding MONETARY AND CREDIT AGGREGATES A12 Aggregate reserves of depository institutions SECURITIES MARKETS AND and monetary base CORPORATE FINANCE A13 Money stock, liquid assets, and debt measures A15 Bank debits and deposit turnover A34 New security issues-State and local A16 Loans and securities-All commercial banks governments and corporations A35 Open-end investment companies - Net sales and asset position COMMERCIAL BANKING INSTITUTIONS A35 Corporate profits and their distribution A35 Total nonfarm business expenditures on new A17 Major nondeposit funds plant and equipment A18 Assets and liabilities, last-Wednesday-of-month A36 Domestic finance companies-Assets and series liabilities and business credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • February 1991 Domestic Financial Statistics — Continued A57 Foreign branches of U. S. banks—Balance sheet data A59 Selected U.S. liabilities to foreign official REAL ESTATE institutions A37 Mortgage markets A3 8 Mortgage debt outstanding REPORTED BY BANKS IN THE UNITED STATES CONSUMER INSTALLMENT CREDIT A59 Liabilities to and claims on foreigners A60 Liabilities to foreigners A39 Total outstanding and net change A62 Banks' own claims on foreigners A40 Terms A63 Banks' own and domestic customers' claims on foreigners A63 Banks' own claims on unaffiliated foreigners FLOW OF FUNDS A64 Claims on foreign countries-Combined domestic offices and foreign branches A41 Funds raised in U.S. credit markets A43 Direct and indirect sources of funds to credit markets REPORTED BYNONBANKING BUSINESS A44 Summary of credit market debt outstanding ENTERPRISES IN THE UNITED STATES A45 Summary of credit market claims, by holder A65 Liabilities to unaffiliated foreigners A66 Claims on unaffiliated foreigners Domestic Nonfinancial Statistics SECURITIES HOLDINGS AND TRANSACTIONS SELECTED MEASURES A67 Foreign transactions in securities A46 Nonfinancial business activity — Selected A68 Marketable U.S. Treasury bonds and measures notes—Foreign transactions A47 Labor force, employment, and unemployment A48 Output, capacity, and capacity utilization A49 Industrial production—Indexes and gross value INTEREST AND EXCHANGE RATES A51 Housing and construction A52 Consumer and producer prices A69 Discount rates of foreign central banks A53 Gross national product and income A69 Foreign short-term interest rates A54 Personal income and saving A70 Foreign exchange rates All Guide to Tabular Presentation, Statistical Releases, and Special International Statistics Tables SUMMARY STATISTICS SPECIAL TABLES A55 U.S. international transactions-Summary A56 U.S. foreign trade All Assets and liabilities of commercial banks, A56 U.S. reserve assets June 30, 1990 A56 Foreign official assets held at Federal Reserve A78 Assets and liabilities of U.S. branches and agencies Banks of foreign banks, September 30, 1990 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 1990 MMoonneettaarryy aanndd ccrreeddiitt aaggggrreeggaatteess Q4 Ql Q2 Q3 July Aug. Sept. Oct. Nov. Reserves of depository institutions2 1 Total 5.1 2.4 -1.4 -1.4 -8.2 8.6 6.7 -9.4 3.4 2 Required 5.0 2.5 -.9 -1.5 -10.1 8.6 6.0 -8.3 1.0 3 Nonborrowed 7.2 -3.9 -1.0 2.0 -5.8 5.2 13.0 -5.2 7.1 4 Monetary base 4.0 8.5 7.0 8.8 6.4 13.1 14.6 6.9 4.5 Concepts of money, liquid assets, and debt4 5 Ml 5.1 4.8 3.5 4.1 -.6 10.2' 9.1' -3.1' 3.8 6 M2 7.1 6.4 3.2 3.1 1.9 6.4 5.3' .1' -1.4 7 M3 2.0 2.9 1.1 1.7' 1.3' 4.6' .8' -1.3' -1.7 8 L 3.1 2.7 1.1 2.6' 2.6' 3.1' 6.5' -1.5 n.a. 9 Debt 7.3 6.1 6.9' 7.4' 7.8' 8.6' 6.7' 5.1 n.a. Nontrgnsaction components 10 In M2y 7.7 6.9 3.1 2.8 2.7 5.2 4.0' 1.2' -3.1 11 In M3 only6 -16.6 -10.4 -7.2' -4.3' -1.1' -2.6' -18.C -7.6' -3.1 Time and savings deposits Commercial banks 12 Savings 7.2 9.5 5.1 3.9 3.7 1.2 4.9 7.9 -.6 13 MMDAs 12.3 9.1 10.6 9.4 8.8 12.0 4.5 1.3' 1.6 14 Small-denomination time 11.3 7.8 12.0 15.3 18.9 6.5 8.2 20.4' 3.5 15 Large-denomination time • 2.7 -1.1 -2.7 -.8' 5.4' -10.2 -13.9 -7.7 -.9 Thrift institutions 16 Savings .2 1.3 .5 -2.3 -.5 -1.1 -6.5 -13.7 -5.0 17 MMDAs 4.7 5.7 2.6 -10.4 -12.6 -5.5 1.8 -10.1 .9 18 Small-denomination time7 -2.5 -3.3 -7.1 -12.8' -15.3 -4.1 -7.7' -18.3' -5.9 19 Large-denomination time8 -28.6 -24.7 -30.2' -31.3' -35.6' -29.3' -26.3 -37.4' -39.6 Money market mutual funds 20 General purpose and broker-dealer 29.1 19.8 1.3 13.1 11.9 32.3 21.4 9.8 -4.9 21 Institution-only 3.3 10.2 11.7 21.9 17.9 56.2 22.1 38.2 3.0 Debt components4 22 Federal 10.4' 6.8 9.7' 14.3r 13.8' 18.6' 11.1' 6.2 n.a. 23 Nonfederal 6.4 6.<y 6.1r 5.3' 6.0' 5.5' 5.3' 4.8 n.a. 1. Unless otherwise noted, rates of change are calculated from average banking offices in the United Kingdom and Canada, and balances in both taxable amounts outstanding in preceding month or quarter. and tax-exempt, institution-only money market mutual funds. Excludes amounts 2. Figures incorporate adjustments for discontinuities associated with regula- held by depository institutions, the U.S. government, money market funds, and tory changes in reserve requirements. (See also table 1.20.) foreign banks and official institutions. Also subtracted is the estimated amount of 3. Seasonally adjusted, break-adjusted monetary base consists of (1) season- overnight RPs and Eurodollars held by institution-only money market mutual ally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally funds. adjusted currency component of the money stock, plus (3) (for all quarterly L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term reporters on the "Report of Transaction Accounts, Other Deposits and Vault Treasury securities, commercial paper and bankers acceptances, net of money Cash" and for all those weekly reporters whose vault cash exceeds their required market mutual fund holdings of these assets. reserves) the seasonally adjusted, break adjusted difference between current vault Debt: Debt of domestic nonfinancial sectors consists of outstanding credit cash and the amount applied to satisfy current reserve requirements. market debt of the U.S. government, state and local governments, and private 4. Composition of the money stock measures and debt is as follows: nonfinancial sectors. Private debt consists of corporate bonds, mortgages, con- Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults sumer credit (including bank loans), other bank loans, commercial paper, bankers of depository institutions; (2) travelers checks of nonbank issuers; (3) demand acceptances, and other debt instruments. Data are derived from the Federal deposits at all commercial banks other than those due to depository institutions, Reserve Board's flow of funds accounts. Data on debt of domestic nonfinancial the U.S. government, and foreign banks and official institutions, less cash items in sectors are monthly averages, derived by averaging adjacent month-end levels. the process of collection and Federal Reserve float; and (4) other checkable Growth rates for debt reflect adjustments for discontinuities over time in the levels deposits (OCD), consisting of negotiable order of withdrawal (NOW) and auto- of debt presented in other tables. matic transfer service (ATS) accounts at depository institutions, credit union 5. Sum of overnight RPs and Eurodollars, money market fund balances share draft accounts, and demand deposits at thrift institutions. (general purpose and broker-dealer), MMDAs, and savings and small time M2: Ml plus overnight (and continuing contract) repurchase agreements deposits. (RPs) issued by all depository institutions and overnight Eurodollars issued to 6. Sum of large time deposits, term RPs, term Eurodollars of U.S. residents, U.S. residents by foreign branches of U.S. banks worldwide, money market and money market fund balances (institution-only), less a consolidation adjustdeposit accounts (MMDAs), savings and small-denomination time deposits ment that represents the estimated amount of overnight RPs and Eurodollars held (time deposits—including retail RPs—in amounts of less than $100,000), and by institution-only money market mutual funds. balances in both taxable and tax-exempt general purpose and broker-dealer 7. Small-denomination time deposits—including retail RPs—are those issued money market mutual funds. Excludes individual retirement accounts (IRA) in amounts of less than $100,000. All IRA and Keogh accounts at commercial and Keogh balances at depository institutions and money market funds. Also banks and thrifts are subtracted from small time deposits. excludes all balances held by U.S. commercial banks, money market funds 8. Large-denomination time deposits are those issued in amounts of $100,000 (general purpose and broker-dealer), foreign governments and commercial or more, excluding those booked at international banking facilities. banks, and the U.S. government. 9. Large-denomination time deposits at commercial banks less those held by M3: M2 plus large-denomination time deposits and term RP liabilities (in money market mutual funds, depository institutions, and foreign banks and amounts of $100,000 or more) issued by all depository institutions, term Eurodol- official institutions. lars held by U.S. residents at foreign branches of U.S. banks worldwide and at all Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Nonfinancial Statistics • February 1991 1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT Millions of dollars Monthly averages of Weekly averages of daily figures for week ending daily figures Factors 1990 1990 Sept. Oct. Nov. Oct. 17 Oct. 24 Oct. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit 285,966 284,920 288,202 284,709 283,846 284,370 288,154 287,417 287,829 288,500 U.S. government securities1' 2 2 Bought outright-system account 233,704 234,588 238,788 234,224 234,623 234,880 238,926 238,618 238,323 238,368 3 Held under repurchase agreements ... 2,797 1,050 2,405 1,451 0 0 1,274 784 3,719 3,799 Federal agency obligations 4 Bought outright 6,377 6,366 6,343 6,377 6,362 6,343 6,343 6,343 6,343 6,343 5 Held under repurchase agreements ... 930 284 163 365 0 0 121 121 146 232 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions2 7 Adjustment credit 240 62 43 44 27 104 40 86 7 51 8 Seasonal credit 419 331 163 333 318 295 212 177 147 133 9 Extended credit 5 18 25 15 20 31 24 25 24 25 10 Float 752 704 482 580 914 665 654 502 365 328 11 Other Federal Reserve assets 40,742 41,517 39,791 41,320 41,582 42,052 40,560 40,762 38,757 39,221 12 Gold stock 11,064 11,061 11,060 11,062 11,061 11,060 11,060 11,060 11,059 11,059 13 Special drawing rights certificate account . 8,518 8,566 10,018 8,518 8,518 8,732 10,018 10,018 10,018 10,018 14 Treasury currency outstanding 20,198 20,254 20,321 20,251 20,265 20,279 20,302 20,314 20,325 20,337 ABSORBING RESERVE FUNDS 15 Currency in circulation 272,891 274,662 278,216 275,467 274,829 274,533 275,712 277,697 278,922 280,094 16 Treasury cash holdings 525 529 552 525 530 536 548 551 556 555 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 6,358 5,544 5,543 5,505 4,931 6,274 6,519 5,471 5,375 4,894 18 Foreign 258 250 250 241 255 249 245 313 229 213 19 Service-related balances and adjustments 2,017 2,024 1,948 2,274 1,945 2,039 2,019 1,884 1,929 1,960 20 Other 279 309 240 259 225 524 245 227 254 238 21 Other Federal Reserve liabilities and capital 9,905 9,375 9,380 9,332 9,162 9,346 10,164 9,103 9,014 9,228 22 Reserve balances with Federal Reserve Banks 33,513 32,108 33,472 30,936 31,812 30,940 34,081 33,562 32,952 32,732 End-of-month figures Wednesday figures 1990 1990 Sept. Oct. Nov. Oct. 17 Oct. 24 Oct. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 SUPPLYING RESERVE FUNDS 23 Reserve Bank credit 284,364 288,586 291,580 285,482 281,627 288,586 286,140 293,685 286,528 290,979 U.S. government securities1, 2 24 Bought outright-system account 234,373 237,763 242,633 233,484 232,764 237,763 237,943 238,423 238,258 238,849 25 Held under repurchase agreements ... 0 0 2,352 2,532 0 0 0 5,490 2,519 5,167 Federal agency obligations 26 Bought outright 6,377 6,343 6,342 6,377 6,343 6,343 6,343 6,343 6,343 6,342 27 Held under repurchase agreements ... 0 0 270 737 0 0 0 846 91 453 28 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 29 Adjustment credit 77 297 97 49 23 297 6 407 8 29 30 Seasonal credit 423 262 7 323 314 262 198 163 138 128 31 Extended credit 5 33 26 16 27 33 22 28 22 26 32 Float 1,832 918 486 785 401 918 1,001 1,084 215 433 33 Other Federal Reserve assets 41,277 42,972 39,367 41,177 41,755 42,972 40,627 40,902 38,934 39,551 34 Gold stock 11,063 11,060 11,059 11,061 11,061 11,060 11,060 11,059 11,059 11,059 35 Special drawing rights certificate account . 8,518 10,018 10,018 8,518 8,518 10,018 10,018 10,018 10,018 10,018 36 Treasury currency outstanding 20,227 20,279 20,348 20,251 20,265 20,279 20,302 20,314 20,325 20,337 ABSORBING RESERVE FUNDS 37 Currency in circulation 271,905 275,043 279,507 275,292 274,779 275,043 276,392 278,525 279,991 280,137 38 Treasury cash holdings 527 544 552 530 535 544 551 556 555 552 Deposits, other than reserve balances, with Federal Reserve Banks 39 Treasury 7,638 7,607 5,495 6,244 5,547 7,607 5,9% 5,334 3,272 4,742 40 Foreign 360 297 264 201 283 297 236 198 215 242 41 Service-related balances and adjustments 1,942 2,039 1,935 2,274 1,945 2,039 2,019 1,884 1,929 1,960 42 Other 374 1,777 213 302 202 1,777 224 234 210 229 43 Other Federal Reserve liabilities and capital 9,606 9,995 9,515 9,015 8,917 9,995 8,902 8,818 8,832 9,082 44 Reserve balances with Federal Reserve Banks 31,820 32,642 35,525 31,452 29,263 32,642 33,200 39,526 32,925 35,448 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 RRReeessseeerrrvvveee ccclllaaassssssiiifffiiicccaaatttiiiooonnn 1987 1988 1989 1990 Dec. Dec. Dec. May June July Aug. Sept. Oct. Nov. 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 37,691 37,837 35,436 32,771 33,878 32,946 32,448 33,303 32,127r 33,399 22222 TTTTToooootttttaaaaalllll vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh33333 26,675 28,204 29,812 29,812 29,632 30,457 30,843 30,622 31,516 31,086 33333 AAAAAppppppppppllllliiiiieeeeeddddd vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh44444 24,449 25,909 27,374 27,461 27,318 27,9% 28,280 28,149 28,925 28,662 44444 SSSSSuuuuurrrrrpppppllllluuuuusssss vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh55555 2,226 2,295 2,439 2,351 2,314 2,460 2,563 2,473 2,591 2,424 55555 TTTTToooootttttaaaaalllll rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss66666 62,141 63,746 62,810 60,232 61,197 60,943 60,728 61,452 61,052r 62,061 66666 RRRRReeeeeqqqqquuuuuiiiiirrrrreeeeeddddd rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 61,094 62,699 61,888 59,269 60,423 60,081 59,860 60,544 60,206 61,098 77777 EEEEExxxxxccccceeeeessssssssss rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 1,046 1,047 922 962 774 862 868 909 847r 963 88888 TTTTToooootttttaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 777 1,716 265 1,335 881 757 927 624 410 230 99999 SSSSSeeeeeaaaaasssssooooonnnnnaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 93 130 84 244 311 389 430 418 335 162 1111100000 EEEEExxxxxttttteeeeennnnndddddeeeeeddddd cccccrrrrreeeeedddddiiiiittttt aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 483 1,244 20 875 346 280 127 6 18 24 Biweekly averages of daily figures for weeks ending 1990 Aug. 8 Aug. 22 Sept. 5 Sept. 19 Oct. 3 Oct. 17 Oct. 31 Nov. 14 Nov. 28 Dec. 12 1111111111 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 32,389 32,463 32,477 34,316 32,389 32,833 31,365'" 33,821 32,865 34,174 1111122222 TTTTToooootttttaaaaalllll vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh33333 30,597 31,379 30,229 30.291 31,222 31,673 31,422 30,653 31,633 30,294 1111133333 AAAAAppppppppppllllliiiiieeeeeddddd vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh44444,,,,, 27,974 28,815 27,720 27,976 28,565 29,171 28,756 28,293 29,124 28,025 1111144444 SSSSSuuuuurrrrrpppppllllluuuuusssss vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh 2,623 2,565 2,509 2,315 2,657 2,502 2,666 2,361 2,510 2,269 1111155555 TTTTToooootttttaaaaalllll rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss66666 60,363 61,277 60,197 62.292 60,954 62,004 60,12r 62,114 61,989 62,199 1111166666 RRRRReeeeeqqqqquuuuuiiiiirrrrreeeeeddddd rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 59,599 60,367 59,304 61,546 59,832 61,021 59,471 61,132 61,005 61,510 1111177777 EEEEExxxxxccccceeeeessssssssss rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss77777 764 910 893 746 1,122 984 65(y 982 984 689 1111188888 TTTTToooootttttaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 908 1,124 638 705 516 401 397 282 193 130 1111199999 SSSSSeeeeeaaaaasssssooooonnnnnaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 429 432 430 410 424 345 307 195 140 87 2222200000 EEEEExxxxxttttteeeeennnnndddddeeeeeddddd cccccrrrrreeeeedddddiiiiittttt aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss88888 419 38 8 5 9 13 26 25 25 25 1. These data also appear in the Board's H.3 (502) release. For address, see in- satisfy current reserve requirements. side front cover. 5. Total vault cash (line 2) less applied vault cash (line 3). 2. Excludes required clearing balances and adjustments to compensate for float 6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash and includes other off-balance sheet "as-of" adjustments. (line 3). 3. Total "lagged" vault cash held by those depository institutions currently 7. Total reserves (line 5) less required reserves (line 6). subject to reserve requirements. Dates refer to the maintenance periods in which 8. Extended credit consists of borrowing at the discount window under the the vault cash can be used to satisfy reserve requirements. Under contempora- terms and conditions established for the extended credit program to help neous reserve requirements, maintenance periods end 30 days after the lagged depository institutions deal with sustained liquidity pressures. Because there is computation periods in which the balances are held. not the same need to repay such borrowing promptly as there is with traditional 4. All vault cash held during the lagged computation period by "bound" short-term adjustment credit, the money market impact of extended credit is institutions (i.e., those whose required reserves exceed their vault cash) plus the similar to that of nonborrowed reserves. amount of vault cash applied during the maintenance period by "nonbound" 9. Data are prorated monthly averages of biweekly averages. institutions (i.e., those whose vault cash exceeds their required reserves) to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 DomesticN onfinancial Statistics • February 1991 1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Banks1 Averages of daily figures, in millions of dollars 1990, week ending Monday2 MMaattuurriittyy aanndd ssoouurrccee Aug. 27 Sept. 3 Sept. 10 Sept. 17 Sept. 24 Oct. 1 Oct. 8 Oct. 15 Oct. 22 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 84,057 87,664 95,172 91,246 79,956 81,974 91,217 86,843 78,536 2 For all other maturities 19,697 19,572 17,839 18,103 17,796 16,572 15,376 17,561 18,933 From other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies 3 For one day or under continuing contract 39,306 36,237 38,524 38,249 37,308 31,985 36,441 37,361 34,698 4 For all other maturities 16,386 17,206 17,452 17,425 16,585 16,960 19,050 19,576 19,784 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 17,044 18,639 16,370 14,524 16,336 15,586 19,495 18,854 16,492 6 For all other maturities 25,459 24,590 22,600 23,224 21,774 19,072 20,207 21,599 22,747 All other customers 7 For one day or under continuing contract 32,102 33,258 33,378 32,726 31,776 29,621 31,139 32,559 31,762 8 For all other maturities 14,649 14,612 13,833 13,415 12,863 13,021 12,308 12,002 12,526 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 48,340 51,861 52,564 51,336 46,590 49,163 50,017 47,434 45,415 10 To all other specified customers3 15,970 16,310 17,741 17,243 17,230 14,620 15,420 15,690 16,937 1. Banks with assets of $1 billion or more as of Dec. 31, 1977. Division of Applications Development and Statistical Services, Financial State- These data also appear in the Board's H.5 (507) release. For address, see inside ment Reports Section, (202) 452-3349. front cover. 3. Brokers and nonbank dealers in securities; other depository institutions; 2. Beginning with the August Bulletin data appearing are the most current foreign banks and official institutions; and United States government agencies. available. To obtain data from May 1, 1989, through April 16, 1990, contact the 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 ccrreeddiitt First 30 days of borrowing After 30 days of borrowing3 BBBaaannnkkk 1/ O 2/ n 9 1 Ef d fe a c te ti ve Pre ra v t i e o us 1/ O 2/ n 9 1 Eff d e a c te ti ve Pre r v at i e o us 1/ O 2/ n 9 1 Eff d e a c te ti ve Pre r v at i e o us Effective date Boston 6 Vi 12/19/90 7 6 Vi 12/19/90 7 8.05 12/27/90 8. 15 12/13/90 New York 12/19/90 12/19/90 12/27/90 12/13/90 Philadelphia 12/19/90 12/19/90 12/27/90 12/13/90 Cleveland 12/19/90 12/19/90 12/27/90 12/13/90 Richmond 12/19/90 12/19/90 12/27/90 12/13/90 Atlanta 12/19/90 12/19/90 12/27/90 12/13/90 Chicago 12/19/90 12/19/90 12/27/90 12/13/90 St. Louis 12/19/90 12/19/90 12/27/90 12/13/90 Minneapolis 12/19/90 12/19/90 12/27/90 12/13/90 Kansas City 12/19/90 12/19/90 12/27/90 12/13/90 Dallas 12/19/90 12/19/90 12/27/90 12/13/90 San Francisco ... 6'/> 12/19/90 7 6 16 12/19/90 7 8.05 12/27/90 8. 15 12/13/90 Range of rates for adjustment credit in recent years4 Range (or F.R. Range (or F.R. Range (or Effective date A le l v l e F l) . — R. Ba o n f k Effective date A le l v l e F l) . — R. B o an f k Effectiv A le l v l e F l) . — R. Banks N.Y. Banks N.Y. Banks In effect Dec. 31, 1977 6 6 1980-——JJuullyy 28 10-11 10 11998844——AApprr.. 9 816-9 9 1978—Jan. 9 6-616 616 29 10 10 13 9 9 20 616 m Sept. 26 11 11 Nov. 71 816-9 m May 11 6V1-I 1 Nov. 17 12 12 76 816 816 12 1 1 Dec. 5 12-13 13 Dec. ?4 8 8 July 3 1-1 Vi 71/4 10 IV4 71/4 1981-——MMaayy 5 13-14 14 11998855——MMaayy 20 716-8 IVi Aug. 21 73/4 73/4 8 14 14 74 IVi 716 Sept. 22 8 8 Nov. 2 13-14 13 Oct. 16 8-8 Vi 816 6 13 13 1986—Mar. 7 1-1 Vi 7 20 m m Dec. 4 12 12 10 1 7 Nov. 1 m-WA 9 Vi Apr. 71 6V2-I 616 3 9Vi 9V2 1982---JJuullyy 20 1116-12 1116 July 11 6 6 23 1116 1116 AAuugg.. 71 516-6 516. 1979—July 20 10 10 AAuugg.. 2 11-1 \Vi 11 ?? 5V6 5V6 Aug. 17 10-10Vi 10 16 3 11 11 20 10 Vi 1016 16 1016 1016 11998877——SSeepptt.. 4 51/6-6 6 Sept. 19 10^-11 11 27 10-1016 10 11 6 6 21 11 11 30 10 10 Oct. 8 11-12 12 Oct. 12 916-10 9V2 11998888——AAuugg.. 9 6-616 6V2 10 12 12 13 9!6 9Vi 11 616 6V2 Nov. 22 9-9V2 9 1980—Feb. 15 12-13 13 26 9 9 1989—Feb. ?4 616-7 1 19 13 13 Dec. 14 816-9 9 77 7 1 May 29 12-13 13 15 m~9 816 30 12 12 17 8 W 816 In effect Jan 2, 616 616 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 l/i 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 • February 1991 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Percent of deposits Depository institution requirements after implementation of the TTyyppee ooff ddeeppoossiitt,, aanndd Monetary Control Act ddeeppoossiitt iinntteerrvvaall22 Percent of deposits Effective date Net transaction accounts3,4 33333 1111122222/////1111188888/////9999900000 1111122222 1111122222/////1111188888/////9999900000 00000 1111122222/////2222277777/////9999900000 00000 1111122222/////2222277777/////9999900000 1. Reserve requirements in effect on Jan. 31, 1991. Required reserves must be three per month for the purpose of making payments to third persons or others. held in the form of deposits with Federal Reserve Banks or vault cash. Nonmem- However, MMDAs and similar accounts subject to the rules that permit no more ber institutions may maintain reserve balances with a Federal Reserve Bank than six preauthorized, automatic, or other transfers per month, of which no more indirectly on a pass-through basis with certain approved institutions. For previous than three can be checks, are not transaction accounts (such accounts are savings reserve requirements, see earlier editions of the Annual Report or the Federal deposits). Reserve Bulletin. Under provisions of the Monetary Control Act, depository 4. The Monetary Control Act of 1980 requires that the amount of transaction institutions include commercial banks, mutual savings banks, savings and loan accounts against which the 3 percent reserve requirement applies be modified associations, credit unions, agencies and branches of foreign banks, and Edge annually by 80 percent of the percentage change in transaction accounts held by corporations. all depository institutions, determined as of June 30 each year. Effective Dec. 18, 2. The Garn-St Germain Depository Institutions Act of 1982 (Public Law 1990 for institutions reporting quarterly and Dec. 25, 1990 for institutions 97-320) requires that $2 million of reservable liabilities of each depository reporting weekly, the amount was increased from $40.4 million to $41.1 million. institution be subject to a zero percent reserve requirement. The Board is to adjust 5. The reserve requirements on nonpersonal time deposits with an original the amount of reservable liabilities subject to this zero percent reserve require- maturity of less than 1-1/2 years were reduced from 3 percent to 1-1/2 percent on ment each year for the succeeding calendar year by 80 percent of the percentage the maintenance period that began December 13, 1990, and to zero for the increase in the total reservable liabilities of all depository institutions, measured maintenance period that began December 27, 1990, for institutions that report on an annual basis as of June 30. No corresponding adjustment is to be made in weekly. The reserve requirement on nonpersonal time deposits with an original the event of a decrease. On Dec. 20, 1988, the exemption was raised from $3.2 maturity of 1-1/2 years or more has been zero since October 6, 1983. million to $3.4 million. In determining the reserve requirements of depository 6. For institutions that report quarterly, the reserves on nonpersonal time institutions, the exemption shall apply in the following order: (1) net NOW deposits with an original maturity of less than 1-1/2 years were reduced from 3 accounts (NOW accounts less allowable deductions); and (2) net other transaction percent to zero on January 17, 1991. accounts. The exemption applies only to accounts that would be subject to a 3 7. The reserve requirements on Euroccurrency liabilities were reduced from 3 percent reserve requirement. percent to zero in the same manner and on the same dates as were the reserves on 3. Transaction accounts include all deposits on which the account holder is nonpersonal time deposits with an original maturity of less than 1-1/2 years (see permitted to make withdrawals by negotiable or transferable instruments, pay- notes 5 and 6). ment orders of withdrawal, and telephone and preauthorized transfers in excess of 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 1990 TTyyppee ooff ttrraannssaaccttiioonn 11998877 11998888 11998899 Apr. May June July Aug. Sept. Oct. U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 18,983 8,223 14,284 5,796 3,365 1,732 287 44,,226644 663311 884466 ? 6,051 587 12,818 0 0 0 0 68 0 0 Exchange 239,740 241,876 231,211 17,286 22,894 16,279 16,159 21,912 19,041 19,271 4 Redemptions 9,029 2,200 12,730 0 0 0 0 0 0 0 Others within 1 year 5 Gross purchases 3,659 2,176 327 0 0 5500 00 00 00 00 6 300 0 0 0 0 0 0 0 0 0 7 Maturity shift 21,504 23,854 28,848 993 4,387 1,314 1,321 3,235 1,010 1,934 8 Exchange -20,388 -24,588 -25,783 -4,304 -2,771 0 -3,577 -4,550 0 0 9 Redemptions 70 0 500 0 0 0 0 0 0 0 1 to 5 years 10 Gross purchases 10,231 5,485 1,436 100 0 00 00 00 00 00 FL 452 800 490 0 0 0 0 0 0 0 1? Maturity shift -17,975 -17,720 -25,534 -739 -3,607 -1,314 -1,234 -2,188 -1,010 -1,677 13 Exchange 18,938 22,515 23,250 4,081 2,521 0 3,577 4,200 0 0 5 to 10 years 14 Gross purchases 2,441 1,579 287 0 0 00 00 00 00 00 15 Gross sales 0 175 29 0 0 0 0 0 0 0 16 Maturity shift -3,529 -5,946 -2,231 -254 -530 0 -87 -697 0 -256 17 Exchange 950 1,797 1,934 223 0 0 0 0 0 0 Over 10 years 18 Gross purchases 1,858 1,398 284 0 0 0 00 00 00 00 19 Gross sales 0 0 0 0 0 0 0 0 0 0 70 Maturity shift 0 -188 -1,086 0 -250 0 0 -350 0 0 21 Exchange 500 275 600 0 250 0 0 350 0 0 All maturities 72 Gross purchases 37,170 18,863 16,617 5,896 3,365 1,782 287 44,,226644 663311 884466 ?3 Gross sales 6,803 1,562 13,337 0 0 0 0 68 0 0 24 Redemptions 9,099 2,200 13,230 0 0 0 0 0 0 0 Matched transactions ?S 950,923 1,168,484 1,323,480 97,970 121,596 107,896 95,144 111133,,664477 112200,,003366 111177,,224477 26 Gross purchases 950,935 1,168,142 1,326,542 98,643 121,218 110,042 95,787 110,635 120,280 122,873 Repurchase agreements2 77 Gross purchases 314,621 152,613 129,518 6,409 3,959 1111,,224422 1133,,110066 2266,,770000 3311,,999966 1199,,884444 28 Gross sales 324,666 151,497 132,688 7,832 3,959 11,242 11,447 23,764 34,932 19,844 29 Net change in U.S. government securities 11,234 15,872 -10,055 5,146 2,987 3,928 2,590 4,121 -2,060 6,472 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 0 0 0 0 0 0 00 00 00 00 31 Gross sales 0 0 0 0 0 0 0 0 0 0 32 Redemptions 276 587 442 78 0 0 33 37 0 34 Repurchase agreements2 33 Gross purchases 80,353 57,259 38,835 22,,559955 2,314 33,,222211 44,,669977 77,,113300 77,,339944 55,,991133 34 Gross sales 81,350 56,471 40,411 3,104 2,314 3,221 4,137 5,944 8,580 5,913 35 Net change in federal agency obligations -1,274 198 -2,018 -587 0 0 527 1,149 -1,186 -34 36 Total net change in System Open Market Account 9,961 16,070 -12,073 4,559 2,987 3,928 3,117 55,,227700 --33,,224477 66,,443388 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 • February 1991 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month Account 1990 1990 Oct. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 Sept. 28 Oct. 31 Nov. 30 Consolidated condition statement ASSETS 1 Gold certificate account 11,060 11,060 11,059 11,059 11,059 11,063 11,060 11,059 2 Special drawing rights certificate account 10,018 10,018 10,018 10,018 10,018 8,518 10,018 10,018 3 551 551 552 548 533 533 551 532 Loans 4 To depository institutions 591 225 598 168 183 505 591 131 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 0 0 0 0 0 0 0 0 1 Bought outright 6,343 6,343 6,343 6,343 6,342 6,377 6,343 6,342 8 Held under repurchase agreements 0 0 846 91 453 0 0 270 U.S. Treasury securities Bought outright 9 Bills 115,218 115,399 115,878 115,713 116,204 111,828 115,218 119,763 10 Notes 91,582 91,582 91,582 91,382 91,482 91,582 91,582 91,707 11 Bonds 30,963 30,963 30,963 31,163 31,163 30,963 30,963 31,163 12 Total bought outright2 237,763 237,943 238,423 238,258 238,849 234,373 237,763 242,633 13 Held under repurchase agreements 0 0 5,490 2,519 5,167 0 0 2,352 14 Total U.S. Treasury securities 237,763 237,943 243,913 240,777 244,016 234,373 237,763 244,985 15 Total loans and securities 244,697 244,511 251,699 247,379 250,994 241,255 244,697 251,728 16 Items in process of collection 5,992 6,398 9,743 6,033 5,565 8,358 5,992 6,235 17 Bank premises 853 853 856 860 860 844 853 862 Other assets 18 Denominated in foreign currencies3 35,669 33,206 33,240 33,359 33,360 34,454 35,669 33,579 19 All other 6,227 6,583 6,866 4,684 5,160 6,006 6,227 4,859 20 Total assets 315,067 313,180 324,033 313,940 317,550 311,031 315,067 318,871 LIABILITIES 71 Federal Reserve notes 225555,,886600 257,191 259,319 226600,,776688 260,885 252,738 255,860 226600,,224433 Deposits 22 To depository institutions 34,546 35,116 41,712 34,943 37,570 33,834 34,546 37,359 23 U.S. Treasury—General account 7,607 5,996 5,334 3,272 4,742 7,638 7,607 5,495 24 Foreign—Official accounts 297 236 198 215 242 360 297 264 25 Other 1,777 224 234 210 229 374 1,777 213 26 Total deposits 44,226 41,572 47,478 38,641 42,784 42,206 44,226 43,331 77 Deferred credit items 4,986 5,515 8,417 5,698 4,799 5,783 6,481 5,783 28 Other liabilities and accrued dividends 3,569 3,680 3,609 3,587 3,850 4,021 3,569 3,807 29 Total liabilities 308,641 307,958 318,824 308,694 312,318 305,446 308,641 313,163 CAPITAL ACCOUNTS 30 Capital paid in 2,402 2,402 2,402 2,407 2,407 2,399 2,402 2,404 31 Surplus 2,243 2,243 2,243 2,243 2,243 2,243 2,243 2,243 32 Other capital accounts 1,781 577 564 595 582 943 1,781 1,062 33 Total liabilities and capital accounts 315,067 313,180 324,033 313,940 317,550 311,031 315,067 318,871 34 MEMO: Marketable U.S. Treasury securities held in custody for foreign and international accounts 239,933 237,884 241,046 240,993 244,045 234,926 240,993 246,728 Federal Reserve note statement 35 Federal Reserve notes outstanding issued to bank 300,234 301,4% 302,487 303,438 304,187 296,914 300,234 304,591 36 LESS: Held by bank 44,375 44,304 43,168 42,669 43,302 44,176 44,375 44,349 37 Federal Reserve notes, net 255,860 257,191 259,319 260,768 260,885 252,738 255,860 260,243 Collateral held against notes net: 38 Gold certificate account 11,060 11,060 11,059 11,059 11,059 11,063 11,060 11,059 39 Special drawing rights certificate account 10,018 10,018 10,018 10,018 10,018 8,518 10,018 10,018 40 Other eligible assets 0 0 0 0 0 0 0 0 41 U.S. Treasury and agency securities 234,782 236,113 238,242 239,691 239,808 239,808 234,782 239,166 42 Total collateral 255,860 257,191 259,319 260,768 260,885 252,738 255,860 260,243 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 Oct. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 Sept. 28 Oct. 31 Nov. 30 429 225 598 168 183 505 429 131 2 3 4 9 W 1 1 6 i t d d h a a i y n y s s 1 t t 5 o o d 9 1 a 0 y y s d e a a r y s 3 5 7 1 9 0 1 7 5 1 0 4 4 1 8 1 4 0 4 15 1 0 6 2 17 0 8 5 2 22 8 1 4 0 3 5 7 0 1 9 8 5 0 0 0 5 6 7 8 Ac W 9 1 c 1 6 e i p t d d h t a a a i y n y n s s c 1 e t t 5 o o s — d 9 1 a 0 T y y o s d e t a a a r y l s 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 9 0 1 2 3 4 U. O 9 W O S 1 1 6 . v v i t e T d e d h r r a a r i e y n y 5 1 a s s y s y 1 t u t e o 5 e o r a a y d r 9 r 1 s a 0 t s y y o t e e d s o c 1 a 5 a u r y 1 r y s 0 i e t i y a e r e s s a — rs T otal 23 5 7 5 2 1 1 7 1 4 9 4 3 3 , , , , , , , 7 4 8 9 5 7 1 6 8 9 7 3 4 2 3 4 9 0 6 7 6 2 5 7 3 5 2 1 3 8 7 9 4 8 3 , , , , , , , 8 9 6 4 3 5 1 8 4 4 1 3 3 2 4 3 8 4 4 6 6 23 7 5 5 2 1 1 8 4 9 2 4 4 3 , , , . , , , 4 0 4 5 5 6 1 2 8 8 7 3 2 2 8 1 4 2 6 8 6 2 7 6 4 2 5 1 1 0 1 0 7 4 3 3 , , , , , , , 7 3 7 1 7 6 2 7 4 0 4 3 2 2 7 9 3 5 6 2 1 2 6 4 7 2 5 1 1 0 4 4 7 4 3 3 , , , , , , , 3 0 6 6 7 2 4 1 4 2 3 3 2 5 5 9 5 4 6 1 0 2 6 5 3 6 2 1 9 9 7 4 0 4 3 , , , , , , , 3 8 7 0 0 5 1 7 3 0 3 9 3 7 3 5 0 3 9 6 0 2 7 3 5 5 2 1 1 1 7 9 4 4 3 3 , , , , , , , 7 8 4 9 5 7 1 6 9 8 7 4 3 2 3 9 4 0 7 6 6 24 6 7 5 2 1 2 9 7 3 4 3 3 , , , , , , , 6 5 2 9 8 7 2 7 3 8 7 4 3 2 2 3 8 4 1 6 1 1 1 1 1 6 9 7 8 Fe 9 W d 1 1 e 6 i r t d d a h a a l i y n y a s s g 1 e t t 5 o o n c d 9 1 y a 0 y y o e d s b 1 a a l r y i g s ations—Total 6 2 1 , , , 5 3 7 7 1 4 9 1 0 6 3 9 0 5 6 2 1 , , , 3 5 8 6 4 1 9 1 3 6 0 5 9 6 2 1 , , , 5 3 7 6 5 4 9 8 9 7 4 4 0 8 6 2 1 , , , 4 5 4 6 5 3 5 4 9 1 4 7 5 8 9 6 2 1 , , , 7 5 7 6 6 9 9 1 0 6 5 5 4 4 8 6 2 1 , , , 3 6 2 5 7 7 3 2 0 0 7 4 5 0 9 6 2 1 , , , 3 5 7 7 4 1 0 1 9 3 6 5 0 9 6 2 1 , , , 5 3 2 6 6 9 4 6 0 6 5 2 1 4 8 21 Over 5 years to 10 years 1,1 1 2 8 5 8 1,1 1 2 8 5 8 1,0 1 2 8 5 8 1,0 1 2 8 5 8 1,0 1 2 8 5 8 1,1 1 2 8 0 8 1,1 1 2 8 5 8 1,0 1 2 8 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 DomesticN onfinancial Statistics • February 1991 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1990 1986 1987 1988 1989 IItteemm Dec. Dec. Dec. Dec. Apr. May June July Aug. Sept. Oct. Nov. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves3 58.02 58.59 60.59 60.03 60.28 59.78 59.73 59.32 59.75 60.08 59.61 59.78 2 Nonborrowed reserves4 57.20 57.82 58.88 59.77 58.65 58.45 58.85 58.56 58.82 59.46 59.20 59.55 3 Nonborrowed reserves plus extended credit5 57.50 58.30 60.12 59.79 60.05 59.32 59.20 58.84 58.95 59.46 59.22 59.57 4 Required reserves 56.65 57.55 59.55 59.11 59.38 58.82 58.96 58.46 58.88 59.17 58.76 58.81 5 Monetary base6 241.43 258.06 275.24 284.95 293.54 294.40 296.28 297.86 301.12 304.78 306.55r 307.70 ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 Not seasonally adjusted 6 Total reserves7 59.46 60.07 62.22 61.67 61.05 58.74 59.61 59.47 59.21 59.81 59.24r 60.04 7 Nonborrowed reserves ^ 58.64 59.30 60.50 61.40 59.42 57.41 58.73 58.71 58.29 59.19 58.83r 59.81 8 Nonborrowed reserves plus extended credit 58.94 59.78 61.75 61.42 60.82 58.28 59.07 58.99 58.41 59.20 58.85 59.83 9 Required reserves8 58.09 59.03 61.17 60.75 60.15 57.78 58.84 58.61 58.34 58.90 58.40 59.08 10 Monetary base9 245.17 262.00 279.54 289.45 293.35 293.52 297.37 299.90 301.46 303.56 305.00 308.73 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS10 11 Total reserves11 59.56 62.14 63.75 62.81 62.51 60.23 61.20 60.94 60.73 61.45 61.05 62.06 12 Nonborrowed reserves 58.73 61.36 62.03 62.54 60.88 58.90 60.32 60.19 59.80 60.83 60.64 61.83 13 Nonborrowed reserves plus extended credit5 59.04 61.85 63.27 62.56 62.29 59.77 60.66 60.47 59.93 60.83 60.66 61.86 14 Required reserves 58.19 61.09 62.70 61.89 61.62 59.27 60.42 60.08 59.86 60.54 60.21 61.10 15 Monetary base12 247.62 266.06 283.00 292.55 296.87 297.03 300.99 303.39 304.99 307.21 308.85 312.71 16 Excess reserves13 1.37 1.05 1.05 .92 .90 .96 .77 .86 .87 .91 .85 .96 17 Borrowings from the Federal Reserve .83 .78 1.72 .27 1.63 1.33 .88 .76 .93 .62 .41 .23 1. Latest monthly and biweekly figures are available from the Board's H.3(502) 8. To adjust required reserves for discontinuities because of regulatory changes statistical release. Historical data and estimates of the impact on required reserves in reserve requirements, a multiplicative procedure is used to estimate what of changes in reserve requirements are available from the Monetary and Reserves required reserves would have been in past periods had current reserve require- Projections Section. Division of Monetary Affairs. Board of Governors of the ments been in effect. Break-adjusted required reserves includes required reserves Federal Reserve System, Washington, D.C. 20551. against transactions deposits and nonpersonal time and savings deposits (but not 2. Figures reflect adjustments for discontinuities or "breaks" associated with reservable nondeposit liabilities). regulatory changes in reserve requirements. 9. The break-adjusted monetary base equals (1) break-adjusted total reserves 3. Seasonally adjusted, break adjusted total reserves equal seasonally adjusted, (line 6), plus (2) the (unadjusted) currency component of the money stock, plus (3) break-adjusted required reserves (line 4) plus excess reserves (line 16). (for all quarterly reporters on the "Report of Transaction Accounts, Other 4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally Deposits and Vault Cash" and for all those weekly reporters whose vault cash adjusted, break-adjusted total reserves (line 1) less total borrowings of depository exceeds their required reserves) the break-adjusted difference between current institutions from the Federal Reserve (line 17). vault cash and the amount applied to satisfy current reserve requirements. 5. Extended credit consists of borrowing at the discount window under 10. Reflects actual reserve requirements, including those on nondeposit liabilthe terms and conditions established for the extended credit program to help ities, with no adjustments to eliminate the effects of discontinuities associated depository institutions deal with sustained liquidity pressures. Because there is with changes in reserve requirements. not the same need to repay such borrowing promptly as there is with traditional 11. Reserve balances with Federal Reserve Banks plus vault cash used to short-term adjustment credit, the money market impact of extended credit is satisfy reserve requirements. similar to that of nonborrowed reserves. 12. The monetary base, not break-adjusted and not seasonally adjusted, 6. The seasonally adjusted, break-adjusted monetary base consists of (1) consists of (1) total reserves (line 11), plus (2) required clearing balances and seasonally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjustments to compensate for float at Federal Reserve Banks, plus (3) the adjusted currency component of the money stock, plus (3) (for all quarterly currency component of the money stock, plus (4) (for all quarterly reporters on reporters on the "Report of Transaction Accounts, Other Deposits and Vault the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all Cash" and for all those weekly reporters whose vault cash exceeds their required those weekly reporters whose vault cash exceeds their required reserves) the reserves, the seasonally adjusted, break-adjusted difference between current vault difference between current vault cash and the amount applied to satisfy current cash and the amount applied to satisfy current reserve requirements. reserve requirements. After the introduction of CRR, currency and vault cash 7. Break-adjusted total reserves equal break-adjusted required reserves (line 9) figures are measured over the computation periods ending on Mondays. plus excess reserves (line 16). 13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14). 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 1990 1986 1987 1988 1989 Itenr Dec. Dec. Dec. Dec. Aug. Sept.' Oct.' Nov. Seasonally adjusted 1 724.7 750.4 787.5 794.8 815.9' 822.1 820.0 822.6 ? 2,814.2 2,913.2 3,072.4 3,221.6 3,305.3 3,319.8 3,320.2 3,316.4 3,494.5 3,678.7 3,918.3 4,044.3 4,093.4' 4,096.1 4,091.6 4,085.8 4 4,135.4 4,338.9 4,676.1 4,881.2 4,933.6' 4,960.2 4,954.0 n.a. 5 7,636.2 8,345.1 9,107.6 9,790.4' 10,256.6' 10,313.6 10,357.8 n.a. Ml components Currency3 180.6 196.7 211.8 221.9 238.4 241.5 244.0 244.8 7 Travelers checks 6.5 7.0 7.5 7.4 8.0 8.3 8.4 8.4 8 Demand deposits 302.1 287.0 287.0 279.7 277.9 279.7 276.8 277.2 9 Other checkable deposits6 235.5 259.7 281.3 285.7 291.6 292.6 290.9 292.2 Nontransactions components in 2,089.6 2,162.8 2,284.9 2,426.8 2,489.5 2,497.7 2,500.2 2,493.8 11 In M3 only8 680.3 765.5 845.9 822.6 788.1' 776.3 771.4 769.4 Time and Savings accounts Commercial banks i? Savings deposits 155.8 178.3 192.0 188.5 195.8 196.6 119977..99 119977..88 n Money market deposit accounts 377.7 356.4 350.2 351.5 374.6 376.0 376.4 376.9 14 Small time deposits' 366.3 388.1 447.5 528.6 571.2 575.1 584.9 586.6 15 Large time deposits10, 289.8 326.9 368.2 401.5 396.3' 391.7 389.2 388.9 Thrift institutions 16 Savings deposits 214.3 236.6 235.9 220.5 220.5 219.3 221166..88 221155..99 17 Money market deposit accounts 193.3 167.4 150.1 132.2 131.0 131.2 130.1 130.2 18 Small time deposits' 489.9 529.7 583.5 613.7 580.2 576.5 567.7 564.9 19 Large time deposits'" 150.0 161.9 172.9 156.8 127.8' 125.0 121.1 117.1 Money market mutual funds 70 General purpose and broker-dealer 208.7 222.0 240.9 312.4 333355..99 334411..99 334444..77 334433..33 21 Institution-only 83.8 89.0 87.1 102.3 114.0 116.1 119.8 120.1 Debt components ?? 1,806.1 1,957.9 2,114.2 2,268. 1' 22,,443388..99'' 22,,446611..55 22,,447744..33 n.a. 23 Nonfederal debt 5,830.1 6,387.2 6,993.4 7,522.3' 7,817.8' 7,852.1 7,883.5 n.a. Not seasonally adjusted 74 740.5 766.4 804.5 812.1 813.7 818.1 816.7 825.1 75 2,826.5 2,925.6 3,085.2 3,234.5 3,305.4 3,312.3 3,316.8 3,320.5 76 3,508.8 3,692.7 3,932.5 4,058.3 4,093.6' 4,092.2 4,090.9 4,095.6 71 4,151.4 4,355.2 4,692.9 4,898.9 4,928.1' 4,954.8 4,953.7 n.a. 28 7,619.0 8,329.1 9,093.2 9,775.9' 10,203.2' 10,263.3 10,319.0 n.a. Ml components 79 Currency 183.0 199.3 214.8 225.3 239.2 240.8 242.6 245.6 30 Travelers checks4 6.0 6.5 6.9 6.9 8.9 8.8 8.4 8.0 31 Demand deposits 314.0 298.6 298.9 291.6 276.5 277.9 277.6 280.0 32 Other checkable deposits6 237.5 262.0 283.8 288.4 289.0 290.6 288.0 291.5 Nontransactions components 31 2,086.0 2,159.2 2,280.7 2,422.4 2,491.7 2,494.3 2,500.1 2,495.5 34 In M3 only8 682.3 767.0 847.3 823.8 788.2' 779.9 774.1 775.1 Time and Savings accounts Commercial banks 35 Savings deposits 154.4 176.9 190.6 187.2 196.3 196.0 197.9 197.7 36 Money market deposit accounts 379.8 359.0 353.2 355.0 372.9 374.4 375.2 379.1 37 Small time deposits' 366.1 387.3 446.0 526.4 572.2 575.6 584.4 585.1 38 Large time deposits10' 289.2 325.8 366.9 399.8 397.0r 393.1 390.4 389.3 Thrift institutions 39 Savings deposits 212.7 234.9 234.2 219.0 221.0 219.0 217.7 215.8 40 Money market deposit accounts 192.9 167.5 150.6 132.8 131.2 131.2 130.3 130.7 41 Small time deposits' 489.8 529.1 582.4 612.3 580.6 575.5 567.8 565.0 42 Large time deposits10 150.7 162.9 174.2 158.3 127.2' 125.2 122.3 118.8 Money market mutual funds 43 General purpose and broker-dealer 208.0 221.5 240.5 312.2 334.9 340.9 342.9 344.3 44 Institution-only 84.4 89.6 87.6 102.9 113.2 113.2 117.0 121.3 Repurchase agreements and Eurodollars 45 Overnight 82.3 83.2 83.3 77.4 82.7 81.6 83.9 77.8 46 164.3 197.1 227.7 178.0 166.7' 163.8 160.9 162.3 Debt components 47 Federal debt 1,803.9 1,955.6 2,111.8 2,265.9' 2,422.4' 2,444.5 2,459.3 n.a. 48 Nonfederal debt 5,815.1 6,373.5 6,981.4 7,509.9' 7,780.8' 7,818.8 7,859.7 n.a. For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Nonfinancial Statistics • February 1991 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 Money 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. Data are derived from the Federal Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults Reserve Board's flow of funds accounts. Debt data are based on monthly of depository institutions; (2) travelers checks of nonbank issuers; (3) demand averages. deposits at ail 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 ana 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, money market deposit Reserve float. accounts (MMDAs), savings and small-denomination time deposits (time depos- 6. Consists of NOW and ATS balances at all depository institutions, credit its—including retail RPs—in amounts of less than $100,000), and balances in both union share draft balances, and demand deposits at thrift institutions. taxable and tax-exempt general purpose and broker-dealer money market mutual 7. Sum of overnight RPs and overnight Eurodollars, money market fund funds. Excludes individual retirement accounts (IRA) and Keogh balances at balances (general purpose and broker-dealer), MMDAs, and savings and small depository institutions and money market funds. Also excludes all balances held time deposits. by U.S. commercial banks, money market funds (general purpose and broker- 8. Sum of large time deposits, term RPs, term Eurodollars of U.S. residents, dealer), foreign governments and commercial banks, and the U.S. government. and money market fund balances (institution-only), less a consolidation adjust- M3: M2 plus large-denomination time deposits and term RP liabilities (in ment that represents the estimated amount of overnight RPs and Eurodollars held amounts of $100,000 or more) issued by all depository institutions, term Eurodol- by institution-only money market funds. lars held by U.S. residents at foreign branches of U.S. banks worldwide and at all 9. Small-denomination time deposits—including retail RPs—are those issued banking offices in the United Kingdom and Canada, and balances in both taxable in amounts of less than $100,000. All individual retirement accounts (IRA) and and tax-exempt, institution-only money market mutual funds. Excludes amounts Keogh accounts at commercial banks and thrifts are subtracted from small time held by depository institutions, the U.S. government, money market funds, and deposits. foreign banks and official institutions. Also subtracted is the estimated amount of 10. Large-denomination time deposits are those issued in amounts of $100,000 overnight RPs and Eurodollars held by institution-only money market mutual or more, excluding those booked at international banking facilities. 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. 1990 Bank group, or type of customer 11998877 11998888 11998899 Apr. May June July Aug. Sept. DEBITS TO Seasonally adjusted Demand deposits 1 All insured banks 217.116.2 226,888.4 272.793.1 274,403.6 273,186.2 301,578.2 301,589.9 309.441.0 287,546.5 2 Major New York City banks 104.496.3 107,547.3 121.894.2 124,988.2 123,314.6 131,042.7 130,590.7 133,491.9 131,920.3 3 Other banks 112,619.8 119,341.2 150,898.9 149,415.4 149,871.6 170,535.5 170,999.2 175.949.1 155,626.2 4 ATS-NOW accounts4 2,402.7 2,757.7 3,501.8 3,993.3 4,165.6 4,004.2 4,163.7 4,478.9 3,763.3 5 Savings deposits5 526.5 579.2 636.6 583.1 601.1 566.6 608.8 592.0' 543.7 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 612.1 641.2 781.0 780.8 791.9 866.2 865.5 888.6 826.2 7 Major New York City banks 2,670.6 2,903.5 3,401.6 3,551.5 3,590.9 3,742.8 3,838.3 3,777.5 3,827.6 8 Other banks 357.0 376.8 481.5 472.5 482.5 544.6 543.8 562.3 496.3 9 ATS-NOW accounts4 13.8 14.7 18.3 19.7 20.5 19.5 20.5 21.9 18.3 10 Savings deposits 3.1 3.1 3.5 3.0 3.2 2.9 3.1 3.1 2.8 DEBITS TO Not seasonally adjusted Demand deposits 11 All insured banks 217.125.1 227,010.7 271,957.3 276.077.5 282,747.7 302,181.4 302,826.4 321,168.8 263,881.4 12 Major New York City banks 104,518.8 107,565.0 122,241.8 125.750.6 125,532.4 130,332.7 130,100.1 137.460.3 121,343.4 13 Other banks 112.606.2 119,445.7 149,715.5 150,326.9 157,215.3 171,848.6 172,726.3 183.708.4 142,538.0 14 ATS-NOW accounts4 2,404.8 2,754.7 3.496.5 4,285.8 4,066.2 4,098.2 4,108.9 4.274.0 3,868.9 15 MMDA 1,954.2 2,430.1 2.790.6 2,848.4 3,016.4 2,992.1 3,033.8 3.171.1 2,786.5 16 Savings deposits 526.8 578.0 635.8 646.8 592.6 567.8 640.3 598.1 538.5 DEPOSIT TURNOVER Demand deposits3 17 All insured banks 612.3 641.7 779.0 784.4 834.7 866.5 864.8 938.3 760.6 18 Major New York City banks 2,674.9 2,901.4 3,415.4 3,564.6 3,796.3 3,797.6 3,777.5 4,109.2 3,607.3 19 Other banks 356.9 377.1 477.8 474.7 514.3 546.6 547.1 594.8 454.9 20 ATS-NOW accounts4 13.8 14.7 18.3 20.5 20.3 20.1 20.4 21.1 19.0 21 MMDA 5.3 6.9 8.3 7.9 8.4 8.2 8.3 8.6 7.5 22 Savings deposits 3.1 3.1 3.5 3.4 3.1 2.9 3.3 3.1 2.8 1. Historical tables containing revised data for earlier periods may be obtained 4. Accounts authorized for negotiable orders of withdrawal (NOW) and acfrom the Monetary and Reserves Projections Section, Division of Monetary counts authorized for automatic transfer to demand deposits (ATS). ATS data are Affairs, Board of Governors of the Federal Reserve System, Washington, D.C. available beginning December 1978. 20551. 5. Excludes ATS and NOW accounts, MMDA and special club accounts, such These data also appear on the Board's G.6 (406) release. For address, see inside as Christmas and vacation clubs. front cover. 6. Money market deposit accounts. 2. Annual averages of monthly figures. 3. Represents accounts of individuals, partnerships, and corporations and of states and political subdivisions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 DomesticN onfinancial Statistics • February 1991 1.23 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars; averages of Wednesday figures 1989 1990 CCaatteeggoorryy Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Seasonally adjusted 1 Total loans and securities2 2,588.8 2,594.4 2,614.3 2,635.6 2,646.7 2,653.8 2,669.4 2,684.7 2,707.8 2,708.5 2,710.9 2,714.2 2 U.S. government securities 3%. 1 404.7 414.5 422.3 427.3 430.6 438.5 440.6 441.3 447.1 451.6 452.0 3 Other securities 180.8 180.4 180.5 180.1 180.0 178.3 177.9 177.8 179.2 179.4 176.9 175.2 4 Total loans and leases2 2,011.9 2,009.3 2,019.4 2,033.2 2,039.4 2,045.0 2,053.0 2,066.4 2,087.3 2,082.0 2,082.5 2,087.0 5 Commercial and industrial 641.6 637.9 638.8 644.4 649.0 648.6 651.6 651.7 653.1 651.6 649.5 652.4 6 Bankers acceptances held3... 7.4 7.3 7.6 7.6 7.5 7.6 7.9 7.6 7.3 7.7 7.6 7.9 7 Other commercial and industrial 634.2 630.6 631.2 636.8 641.5 641.0 643.7 644.2 645.7 643.9 641.9 644.5 8 U.S. addressees4. 628.8 623.1 625.4 630.6 635.5 636.4 638.8 641.6 643.2 641.1 638.8 640.1 9 Non-U.S. addressees 5.4 7.6 5.8 6.2 6.0 4.5 4.9 2.6 2.5 2.8 3.1 4.4 10 Real estate 761.1 765.9 774.7 781.8 786.9 794.6 800.1 808.0 811.9 814.7 820.7' 824.1 11 Individual 375.8 378.3 379.5 379.9 378.8 379.8 378.4 378.3 380.1 381.1 381.2 380.3 12 Security 38.8 39.3 40.0 37.1 36.1 34.8 35.3 38.8 46.0 43.1 41.4 39.9 13 Nonbank financial institutions 33.0 32.5 32.9 33.8 33.9 33.9 34.4 34.8 35.7 36.1 36.1 35.5 14 Agricultural 30.7 30.9 30.8 30.6 30.4 30.0 29.5 29.3 29.2 29.1 29.2 29.5 15 State and political subdivisions 40.1 38.6 38.9 38.4 38.2 37.9 37.4 36.5' 35^ 35.2' 34.6' 34.4 16 Foreign banks 8.9 8.1 7.8 8.4 8.8 8.7 7.4 7.0 8.0 7.9 8.9 8.2 17 Foreign official institutions 3.6 3.2 3.1 3.0 3.2 3.2 3.2 3.2 3.2 3.2 3.1 3.1 18 Lease financing receivables 31.8 32.1 32.1 32.4 32.4 32.7 32.4 32.8 32.9 32.9 33.3 33.0 19 All other loans 46.5 42.5 40.7 43.3 41.8 40.7 43.3 46.(y 51.4' 47.1' 44.5' 46.6 Not seasonally adjusted 20 Total loans and securities2 2,596.8 2,600.1 2,616.7 2,629.9 2,647.0 2,653.4 2,669.5 2,678.9 2,701.4 2,707.1 2,711.0 2,716.0 21 U.S. government securities 397.2 406.4 419.0 423.8 427.2 429.6 435.6 438.1 442.1 446.1 448.6 452.1 22 Other securities 181.8 180.9 180.3 179.7 179.4 177.7 177.2 176.4 179.3 179.6 177.7 176.2 23 Total loans and leases2 2,017.9 2,012.8 2,017.3 2,026.4 2,040.4 2,046.1 2,056.7 2,064.4 2,080.0 2,081.4 2,084.7 2,087.7 24 Commercial and industrial ..... 641.6 636.4 639.5 646.0 653.3 652.7 654.0 652.1 650.6 647.7 647.1 649.6 25 Bankers acceptances held3... 7.5 7.4 7.7 7.4 7.3 7.5 7.8 7.3 7.4 7.8 7.8 8.0 26 Other commercial and industrial 634.0 629.1 631.8 638.6 645.9 645.2 646.2 644.8 643.1 639.9 639.3 641.7 27 U.S. addressees4 628.8 624.1 627.0 633.9 641.3 640.6 641.8 640.3 638.7 635.3 634.6' 636.7 28 Non-U.S. addressees4 5.2 4.9 4.8 4.7 4.6 4.6 4.4 4.5 4.5 4.6 4.7' 5.0 29 Real estate 761.9 766.0 772.1 779.1 784.9 793.5 800.0 808.7 813.6 816.9 822.1 826.0 30 Individual 380.3 381.8 378.7 376.6 376.0 377.3 376.7 376.7 380.3 383.0 382.3 381.7 31 Security 37.9 37.8 39.5 38.1 38.5 35.3 37.4 38.8 45.3 42.1 40.5 38.6 32 Nonbank financial institutions 34.1 33.2 32.5 33.0 33.7 33.9 34.7 34.9' 35.5 35.6 35.7 35.8 33 Agricultural 30.6 30.4 29.9 29.5 29.5 29.7 29.8 30.0 30.0 30.0 30.0 29.8 34 State and political subdivisions 39.7 39.5 39.3 38.6 38.2 37.8 37.2 36.2 35.7' 35.2' 34.6' 34.2 35 Foreign banks 8.7 8.2 7.8 7.8 8.4 8.7 7.6 7.1 7.9 8.1 9.2 8.3 36 Foreign official institutions 3.6 3.2 3.1 3.0 3.2 3.2 3.2 3.2 3.2 3.2 3.1 3.1 37 Lease financing receivables .... 31.9 32.5 32.3 32.4 32.5 32.7 32.3 32.5 32.7 32.8 33.2 33.0 38 All other loans 47.7 43.9 42.7 42.2 42.3 41.4 43.8 44^ 45.3' 46.7' 47.<r 47.5 1. These data also appear in the Board's G.7 (407) release. For address, see 3. Includes nonfinancial commercial paper held. inside front cover. 4. United States includes the 50 states and the District of Columbia. 2. Excludes loans to commercial banks in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions A17 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Monthly averages, billions of dollars 1989 1990 SSoouurrccee Dec. Jan. Feb. Mar. Apr. May' June' July' Aug/ Sept/ Oct/ Nov. Seasonally adjusted 1 Total nondeposit funds2 — 257.3 258.1 267.6 271.4 267.8r 269.6 271.2 282.4 283.4 281.5 290.8 292.8 2 Net balances due to related foreign offices3 — 7.4 10.9 14.7 17.4 16.7' 24.6 14.9 16.9 16.9 19.4 28.4 28.6 3 Borrowings from other than commercial banks in United States 249.9 247.2 252.9 254.0 251.lr 245.0 256.2 265.5 266.6 262.1 226622..44 226644..22 4 Domestically chartered banks 200.4 196.9 201.4 198.4 192.9 187.8 197.8 203.4 202.8 198.6 197.1 196.1 5 Foreign-related banks 49.4 50.4 51.5 55.6 58.2r 57.3 58.5 62.0 63.8 63.5 65.3 68.2 Not seasonally adjusted Total nondeposit funds2 — 250.7 254.6 270.8 277.2 270.6r 278.2 276.1 277.9 228822..55 277.7 228855..88 229900..77 7 Net balances due to related foreign offices3 9.7 10.5 14.3 16.2 14.4 26.4 15.6 14.9 17.1 20.1 27.9 29.5 8 Domestically chartered banks -19.2 -14.5 -11.1 -11.5 -10.6 -1.3 -6.1 -5.9 -3.5 -4.3 -1.0 .7 9 Foreign-related banks 28.9 25.0 25.4 27.7 25.0 27.7 21.7 20.8 20.5 24.4 28.9 28.8 10 Borrowings from other than commercial banks in United States4 241.0 244.1 256.4 261.0 256.2r 251.7 260.5 263.0 265.5 257.6 225577..99 226611..22 11 Domestically chartered banks 194.0 192.9 203.3 204.3 197.0 193.6 199.5 200.5 202.3 195.5 194.1 196.2 12 Federal funds and security RP borrowings5 191.5 190.3 199.6 199.8 193.3 190.2 119966..44 197.6 119988..77 119911..55 119900..88 119933..22 n Other6 2.5 2.7 3.7 4.5 3.7 3.4 3.2 2.9 3.6 4.0 3.3 2.9 14 Foreign-related banks6 47.0 51.2 53.1 56.8 59.2r 58.2 61.0 62.5 63.2 62.1 63.8 65.0 MEMO Gross large time deposits 15 Seasonally adjusted 464.3 462.7 460.6 457.3 455.1 454.7 445522..77 454.0 445500..77 444455..55 444411..55 443399..55 16 Not seasonally adjusted 462.7 460.4 460.3 460.2 455.1 455.2 452.2 451.8 451.4 446.9 442.7 439.9 U.S. Treasury demand balances at commercial 17 Seasonally adjusted 21.1 20.2 17.8 19.2 21.2 18.6 20.4 14.9 33.2 28.2 21.9 26.9 18 Not seasonally adjusted 19.6 23.2 22.0 16.7 20.0 25.2 20.9 15.2 23.5 31.0 20.9 19.3 1. Commercial banks are those in the 50 states and the District of Columbia promissory note or due bill, given for the purpose of borrowing money for the with national or state charters plus agencies and branches of foreign banks, New banking business. This includes borrowings from Federal Reserve Banks and York investment companies majority owned by foreign banks, and Edge Act from foreign banks, term federal funds, loan RPs, and sales of participations in corporations owned by domestically chartered and foreign banks. pooled loans. These data also appear in the Board's G.10 (411) release. For address, see 5. Based on daily average data reported weekly by approximately 120 large inside front cover. banks and quarterly or annual data reported by other banks. 2. Includes federal funds, RPs, and other borrowing from nonbanks and net 6. Figures are partly daily averages and partly averages of Wednesday data. balances due to related foreign offices. 7. Time deposits in denominations of $1(X),000 or more. Estimated averages of 3. Reflects net positions of U.S. chartered banks, Edge Act corporations, and daily data. U.S. branches and agencies of foreign banks with related foreign offices plus net 8. U.S. Treasury demand deposits and Treasury tax-and-Ioan notes at compositions with own IBFs. mercial banks. Averages of daily data. 4. Other borrowings are borrowings through any instrument, such as a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • February 1991 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series1 Billions of dollars 1990 Account Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct/ Nov. ALL COMMERCIAL BANKING INSTITUTIONS2 1 Loans and securities 2,796.0 2,809.2 2,821.2 2,838.3 2,845.9 2,870.9 2,876.4 2,895.8 2,885.6 2,924.3 2,918.6 2 Investment securities 563.9 571.2 576.8 582.5 585.9 587.7 587.5 595.8 600.4 602.8 601.0 3 U.S. government securities 389.8 398.0 405.9 412.6 416.9 419.9 420.1 427.1 432.2 436.2 435.7 4 Other 174.1 173.2 170.8 169.9 169.0 167.8 167.4 168.7 168.2 166.6 165.3 5 Trading account assets 31.8 30.2 26.0 23.9 21.4 23.7 27.2 29.2 21.3 27.3 24.8 6 Total loans 2,200.4 2,207.8 2,218.5 2,231.9 2,238.7 2,259.6 2,261.6 2,270.7 2,263.9 2,294.2 2,292.8 7 Interbank loans 187.4 187.5 191.6 190.6 192.8 202.7 199.9 198.4 188.8 205.0 204.7 8 Loans excluding interbank 2,013.0 2,020.3 2,026.9 2,041.3 2,045.9 2,056.9 2,061.7 2,072.4 2,075.1 2,089.1 2,088.2 9 Commercial and industrial 636.4 642.4 646.2 653.3 650.9 654.1 648.7 646.3 646.7 649.0 649.8 10 Real estate 767.6 774.0 781.6 786.7 796.7 801.3 810.2 813.3 817.4 823.7 825.9 11 Individual 381.7 378.6 375.5 377.5 377.3 378.5 377.7 382.2 383.9 382.3 382.5 12 Mother 227.3 225.3 223.6 223.8 220.9 222.9 225.0 230.6 227.1 234.1 230.0 13 Total cash assets 218.9 224.9 212.9 211.6 239.9 222.9 214.1 211.0 217.6 224.2 220.1 14 Reserves with Federal Reserve Banks. 24.6 29.5 32.0 31.6 27.8 32.0 30.1 30.3 33.9 29.9 33.2 15 Cash in vault 28.0 27.8 27.7 28.5 29.9 28.9 28.7 30.2 29.2 29.3 32.7 16 Cash items in process of collection ... 89.9 91.6 80.0 80.0 100.6 86.1 79.5 77.4 80.9 85.4 78.4 17 Demand balances at U.S. depository institutions 29.6 30.8 27.4 26.3 32.0 27.6 27.4 27.5 27.2 28.6 28.6 18 Other cash assets 46.8 45.2 45.8 45.2 49.7 48.3 48.4 45.6 46.4 50.9 47.2 19 Other assets 218.1 212.9 209.1 206.0 199.5 211.1 207.1 216.3 216.9 223.8 220.5 20 Total assets/total liabilities and capital 3,233.0 3,247.0 3,243.2 3,255.9 3,285.4 3,304.9 3,297.5 3,323.1 3,320.1 3,372.4 3,359.2 21 Deposits 2,247.1 2,262.4 2,251.3 2,257.3 2,293.1 2,280.6 2,289.7 2,295.2 2,298.1 2,327.9 2,316.2 22 Transaction deposits 612.2 616.6 594.3 601.0 618.4 599.6 591.5 590.5 596.3 613.2 599.1 23 Savings deposits 540.8 546.3 551.8 548.7 554.4 556.3 561.3 565.7 563.5 570.1 572.8 24 Time deposits 1,094.2 1,099.5 1,105.3 1,107.5 1,120.3 1,124.7 1,136.8 1,139.0 1,138.3 1,144.6 1,144.3 25 Borrowings 552.8 542.2 545.4 564.7 548.2 578.7 564.4 576.2 564.7 586.2 566.0 26 Other liabilities 221.8 229.3 230.8 218.0 227.8 227.2 224.3 231.7 236.8 238.2 257.3 27 Residual (assets less liabilities) 211.4 213.2 215.7 215.8 216.2 218.4 219.1 220.0 220.5 220.0 219.6 MEMO 28 U.S. government securities (including trading account) 414.7 421.2 423.8 427.8 430.0 433.8 438.9 444.3 442.9 452.4 450.0 29 Other securities (including trading account) 180.9 180.2 179.0 178.6 177.2 177.6 175.9 180.8 178.9 177.7 175.8 DOMESTICALLY CHARTERED COMMERCIAL BANKS3 30 Loans and securities 2,557.9 2,566.3 2,570.5 2,581.8 2,585.1 2,602.9 2,610.3 2,627.6 2,616.0 2,649.6 2,636.8 31 Investment securities 536.2 543.1 547.2 551.5 557.5 557.3 556.8 565.5 568.7 569.7 568.6 32 U.S. government securities 376.6 384.4 391.2 397.6 404.0 405.5 405.5 413.0 416.9 419.6 420.2 33 Other 159.6 158.7 156.0 154.0 153.5 151.9 151.4 152.5 151.8 150.0 148.4 34 Trading account assets 31.8 30.2 26.0 23.9 21.4 23.7 27.2 29.2 21.3 27.3 24.8 Total loans 1,989.9 1,993.0 1,997.3 2,006.4 2,006.2 2,021.9 2,026.3 2,032.9 2,026.0 2,052.6 2,043.4 36 Interbank loans 150.0 148.5 148.3 149.1 144.4 153.6 151.6 151.3 142.4 160.6 154.6 37 Loans excluding interbank 1,839.9 1,844.6 1,849.0 1,857.3 1,861.7 1,868.3 1,874.7 1,881.6 1,883.6 1,892.0 1,888.8 38 Commercial and industrial 513.8 518.3 519.4 523.4 520.4 519.2 516.9 513.4 513.3 514.1 511.6 39 Real estate 735.9 741.1 747.8 751.8 761.2 765.3 773.5 776.1 780.2 785.8 787.6 40 Individual 381.7 378.6 375.5 377.5 377.3 378.5 377.7 382.2 383.9 382.3 382.5 41 All other 208.5 206.5 206.3 204.6 202.8 205.3 206.7 209.9 206.1 209.8 207.1 42 Total cash assets 195.7 199.9 187.3 186.8 210.7 194.8 186.5 184.2 190.4 192.1 190.7 43 Reserves with Federal Reserve Banks. 22.7 27.5 29.8 29.8 26.6 30.8 28.8 28.1 32.2 28.5 31.4 44 Cash in vault 28.0 27.8 27.7 28.5 29.8 28.8 28.7 30.2 29.2 29.3 32.7 45 Cash items in process of collection ... 88.5 90.2 78.5 78.7 99.2 84.1 78.1 75.8 78.9 83.7 76.5 46 Demand balances at U.S. depository institutions 27.6 28.7 25.6 24.6 30.0 25.9 25.6 25.1 25.2 26.7 26.2 47 Other cash assets 28.9 25.7 25.7 25.2 25.1 25.2 25.3 25.0 25.0 23.9 23.9 48 Other assets 143.6 140.2 136.4 133.8 136.3 141.8 138.4 144.3 149.1 151.7 153.0 49 Total assets/liabilities and capital 2,897.2 2,906.5 2,894.2 2,902.4 2,932.0 2,939.6 2,935.3 2,956.1 2,955.5 2,993.4 2,980.6 50 Deposits 2,164.5 2,179.9 2,169.4 2,174.6 2,210.6 2,197.8 2,207.7 2,213.3 2,218.1 2,249.6 2,239.6 51 Transaction deposits 601.9 606.3 584.5 591.2 608.3 589.0 581.1 579.9 585.1 602.3 588.5 52 Savings deposits 537.9 543.4 548.8 545.7 551.4 553.3 558.3 562.7 560.4 567.0 569.5 53 Time deposits 1,024.7 1,030.2 1,036.1 1,037.6 1,050.9 1,055.4 1,068.2 1,070.7 1,072.5 1,080.3 1,081.6 54 Borrowings 405.3 394.2 393.1 405.4 391.7 409.9 395.6 403.5 395.0 399.6 393.3 55 Other liabilities 119.9 123.1 119.9 110.5 117.3 117.2 116.8 123.2 125.8 128.0 132.0 56 Residual (assets less liabilities) 207.5 209.3 211.8 212.0 212.3 214.6 215.3 216.1 216.7 216.2 215.8 MEMO 57 Real estate loans, revolving 51.1 51.4 52.0 53.1 54.0 55.0 56.1 57.4 58.1 60.4 60.9 58 Real estate loans, other 684.8 689.7 695.8 698.7 707.2 710.3 717.4 718.8 722.1 725.4 726.7 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 Account Oct. 10 Oct. 17 Oct. 24 Oct. 31' Nov. 7 Nov. 14 Nov. 21 Nov. 28 1 Cash and balances due from depository institutions ... 109,008 120,151 103,111 97,192' 106,680 98,474 124,953 106,130 107,613 2 Total loans, leases, and securities, net 1,311,358' 1,305,240 1,309,663 1,301,088' 1,316,233 1,305,927 1,311,348 1,304,787 1,299,204 3 U.S. Treasury and government agency 183,410' 184,346' 184,952' 182,603' 184,040 184,961 183,743 183,668 180,844 4 Trading account 17,595 18,494 18,718 16,108 16,141 16,783 15,538 16,186 14,279 5 Investment account 165,815' 165,853' 166,234' 166,495' 167,899 168,178 168,205 167,482 166,565 6 Mortgage-backed securities 81,588' 81,428' 81,807' 82,126' 82,075 82,124 82,013 82,192 81,576 All other maturing in 7 One year or less 15,612 15,603 15,243 15,250 15,149 15,159 15,020 15,254 15,271 8 Over one through five years 41,030 41,105 41,623 41,484 41,599 41,685 41,855 41,420 41,281 9 Over five years 27,584' 27,716' 27,561' 27,635' 29,076 29,210 29,317 28,615 28,438 10 Other securities 61,667' 61,372' 60,996' 60,949' 61,046 60,533 60,421 60,108 60,107 11 Trading account 1,055 1,140 1,079 1,166 1,376 1,364 1,406 1,406 1,529 12 Investment account 60,612' 60,232' 59,917' 59,783' 59,670 59,170 59,015 58,702 58,578 13 States and political subdivisions, by maturity 31,881 31,800 31,751 31,675 31,480 31,170 30,958 30,648 30,464 14 One year or less 3,811 3,784 3,773 3,795 3,792 3,797 3,752 3,646 3,649 15 Over one year 28,070 28,016 27,979 27,880 27,689 27,373 27,206 27,002 26,816 16 Other bonds, corporate stocks, and securities 28,730' 28,432' 28,165' 28,108' 28,189 28,000 28,057 28,054 28,113 17 Other trading account assets 10,185 9,998 9,905 9,043 9,340 9,410 9,178 8,368 8,729 18 Federal funds sold3 77,845 73,147 74,692 70,955 80,832 74,018 77,276 72,837 71,300 19 To commercial banks 55,811 51,168 52,350 47,901 58,287 50,220 55,293 50,154 48,111 20 To nonbank brokers and dealers in securities 16,997 17,504 18,136 18,164 17,947 18,586 17,663 18,131 19,054 21 Toothers 5,037 4,476 4,207 4,890 4,599 5,212 4,320 4,552 4,134 22 Other loans and leases, gross 1,016,988' 1,015,627 1,018,761 1,017,252' 1,021,008 1,017,118 1,020,866 1,019,986 1,018,332 23 Other loans, gross 989,580' 988,208 991,332 989,851' 993,614 989,776 993,458 992,632 991,005 24 Commercial and industrial 318,505' 316,951' 317,782' 318,187' 319,538 319,682 318,953 318,888 317,473 25 Bankers acceptances and commercial paper 1,598 1,671 1,646 1,606 1,574 1,520 1,488 1,338 1,384 26 All other 316,907' 315,28c 316,136' 316,581' 317,964 318,162 317,464 317,549 316,089 27 U.S. addressees 315,376' 313,890' 314,73c 314,938' 316,406 316,700 315,821 316,090 314,669 28 Non-U.S. addressees 1,531' 1,391' 1,406 1,643' 1,558 1,462 1,643 1,460 1,421 29 Real estate loans 381,372' 381,856' 382,690' 382,274' 382,756 383,308 384,187 384,923 383,925 30 Revolving, home equity 32,122 32,285 32,854 32,559 32,695 32,676 32,803 32,864 32,939 31 All other 349,250' 349,572' 349,836' 349,716' 350,060 350,632 351,384 352,059 350,986 32 To individuals for personal expenditures 173,70C 173,438' 173,514' 173,662' 173,631 172,654 172,754 172,993 173,364 33 To depository and financial institutions 48,312' 49,820' 50,987' 50,59C 51,743 50,644 51,623 51,320 51,260 34 Commercial banks in the United States 20,907' 21,667' 23,286' 23,678' 23,097 22,576 22,947 23,636 23,744 35 Banks in foreign countries 3,698 4,374 4,336 3,847 4,555 3,993 4,378 4,159 4,208 36 Nonbank depository and other financial institutions 23,707 23,779 23,365 23,065 24,090 24,076 24,298 23,524 23,308 37 For purchasing and carrying securities 14,540 13,944 14,008 13,898 14,407 12,958 14,020 13,062 14,020 38 To finance agricultural production 6,137 6,140' 6,151 6,166 6,127 6,065 6,046 5,930 5,858 39 To states and political subdivisions 21,823' 21,781' 21,797' 21,647' 21,743 21,611 21,676 21,555 21,415 40 To foreign governments and official institutions ... 1,400 1,483 1,490 1,357 1,310 1,352 1,431 1,492 1,402 41 All other 23,790' 22,793' 22,912' 22,069' 22,359 21,501 22,768 22,470 22,288 42 Lease financing receivables 27,408 27,419 27,429 27,400 27,394 27,342 27,408 27,354 27,326 43 LESS: Unearned income .... 4,350 4,329 4,310 4,302 4,249 4,232 4,224 4,214 4,196 44 Loan and lease reserve4 34,386 34,922 35,333 35,410 35,785 35,881 35,910 35,965 35,911 45 Other loans and leases, net 978,251' 976,376 979,118 977,539' 980,974 977,005 980,731 979,807 978,224 46 All other assets 143,003' 140,773 137,608' 135,742' 140,046 139,382 139,846 141,796 143,368 47 Total assets 1,563,369 1,566,165 1,550,381' 1,534,023' 1,562,959 1,543,784 1,576,148 1,552,714 1,550,185 48 Demand deposits 225,330' 233,486' 221,772' 208,206' 224,812 213,880 234,321 221,678 217,214 49 Individuals, partnerships, and corporations 179,819' 185,454' 178,278' 168,271' 179,827 173,796 188,752 178,123 173,928 50 States and political subdivisions 6,068 6,392 6,003 6,045 6,844 5,825 5,757 7,201 6,427 51 U.S. government 1,898 1,394 1,382 1,469 2,117 1,427 1,593 2,070 1,038 52 Depository institutions in the United States 21,827' 24,637 21,875 18,538' 20,547 18,678 23,771 19,568 19,915 53 Banks in foreign countries 6,187 6,405 5,763 5,218 6,069 5,668 6,024 5,769 5,335 54 Foreign governments and official institutions 753 670 749 662 565 648 538 590 638 55 Certified and officers' checks 8,777 8,534 7,722 8,004 8,842 7,839 7,886 8,356 9,934 56 Transaction balances other than demand deposits 81,621 80,466 79,176 77,582 79,396 80,723 79,712 79,698 78,354 57 Nontransaction balances 755,127' 755,424' 755,012' 754,187' 755,116 756,352 756,440 754,987 753,989 58 Individuals, partnerships, arid corporations 719,084' 719,05C 718,661' 717,852' 718,860 720,373 720,510 718,959 717,988 59 States and political subdivisions 28,217 28,597 28,447 28,507 28,352 28,476 28,471 28,642 28,675 60 U.S. government 1,020 1,006 1,011 1,015 1,018 1,009 1,003 1,014 1,019 61 Depository institutions in the United States 6,013 5,966 6,087 6,010 6,086 6,056 6,007 5,925 5,862 62 Foreign governments, official institutions, and banks 794 805 807 802 799 439 450 447 445 63 Liabilities for borrowed money 297,385 291,914 289,362 289,006' 295,929 287,438 300,180 288,497 290,571 64 Borrowings from Federal Reserve Banks 120 0 0 0 179 0 227 0 0 65 Treasury tax-and-loan notes 8,065' 5,195' 11,878 23,855' 23,601 9,345 9,558 13,132 16,243 66 All other liabilities for borrowed money5 289,200' 286,718' 277,485 265,151' 272,150 278,093 290,395 275,366 274,328 67 Other liabilities and subordinated notes and debentures 99,044' 99,970' 100,891' 100,721' 103,011 100,993 100,736 103,750 105,434 68 Total liabilities ,458,506 1,461,260 1,446,214' 1,429,703' 1,458,265 1,439,386 1,471,389 1,448,610 1,445,562 69 Residual (total assets minus total liabilities)6 104,863 104,904 104,167 104,319 104,695 104,397 104,759 104,104 104,623 MEMO 70 Total loans and leases (gross) and investments adjusted ,273,377' 1,271,657' 1,273,67C 1,269,222' 1,274,883 1,273,245 1,273,243 1,271,176 1,267,456 71 Total loans and leases (gross) adjusted ,018,115' 1,015,940' 1,017,818' 1,016,628' 1,020,457 1,018,341 1,019,901 1,019,033 1,017,776 72 Time deposits in amounts of $100,000 or more 207,296' 206,618' ' 208,035' 208,432 208,544 208,196 207,538 206,728 206,049 73 U.S. Treasury securities maturing in one year or less .. 13,784 14,217 14,357 14,855 15,483 15,421 15,376 15,224 15,104 74 Loans sold outright to affiliates—total8 284 286 286 288 280 277 281 278 263 75 Commercial and industrial 139 140 141 142 138 136 150 152 140 76 Other ' 145 146 146 146 142 140 131 125 123 77 Nontransaction savings deposits (including MMDAs)... 289,384 290,426 289,107 287,918' 288,629 290,268 291,347 290,208 289,582 1. Beginning Jan. 6, 1988, the "Large bank" reporting group was revised or more on Dec. 31, 1977, see table 1.13. somewhat, eliminating some former reporters with less than $2 billion of assets 6. This is not a measure of equity capital for use in capital-adequacy analysis or and adding some new reporters with assets greater than $3 billion. for other analytic uses. 2. Includes U.S. government-issued or guaranteed certificates of participation 7. Exclusive of loans and federal funds transactions with domestic commercial in pools of residential mortgages. banks. 3. Includes securities purchased under agreements to resell. 8. Loans sold are those sold outright to a bank's own foreign branches, 4. Includes allocated traAsfpr risk reserve. nonconsolidated nonbank affiliates of the bank, the bank's holding company (if 5. Includes federal funds purchased and securities sold under agreements to not a bank), and nonconsolidated nonbank subsidiaries of the holding company. repurchase; for information on these liabilities at banks with assets of $1 billion Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • February 1991 1.28 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY1 Millions of dollars, Wednesday figures 1990 AAccccoouunntt Oct. 3 Oct. 10 Oct. 17 Oct. 24 Oct. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 1 Cash balances due from depository institutions 23,707 28,792 21,257 20,882 21,704 22,020 26,393 20,970 23,816 2 Total loans, leases, and securities, net2 223,394 217,602 218,316 213,658 220,234 214,241 217,372 214,147 213,274 Securities 3 U.S. Treasury and government agency 0 0 0 0 0 0 0 0 0 4 Trading account3 0 0 0 0 0 0 0 0 0 i Investment account 23,519 23,480 23,658 23,485 24,195 24,249 24,189 23,299 22,785 6 Mortgage-backed securities4 11,916 11,866 12,035 11,685 11,850 1111,,884411 1111,,996688 1111,,778899 1111,,442255 All other maturing in / One year or less 2,137 2,151 2,148 2,374 2,338 2,361 2,297 2,319 2,335 8 Over one through five years 4,779 4,778 4,795 4,823 5,017 5,076 4,923 4,1% 4,034 9 Over five years 4,687 4,686 4,680 4,603 4,990 4,971 5,000 4,995 4,990 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 13,095 13,049 12,987 12,853 12,781 12,569 12,438 12,234 12,160 13 States and political subdivisions, by maturity 6,097 6,067 6,030 5,916 5,859 5,632 5,528 5,307 5,254 14 One year or less 613 620 618 614 616 607 606 592 597 15 Over one year 5,483 5,447 5,411 5,302 5,242 5,025 4,922 4,715 4,658 16 Other bonds, corporate stocks, and securities 6,998 6,982 6,957 6,936 6,922 6,936 6,911 6,927 6,905 17 Other trading account assets3 0 0 0 0 0 0 0 0 0 Loans and leases 18 Federal funds sold 24,177 18,621 19,262 15,640 19,082 16,102 17,323 16,022 15,229 19 To commercial banks 16,194 11,227 12,161 9,218 13,450 9,289 11,743 9,403 9,273 20 To nonbank brokers and dealers in securities 6,168 5,908 6,094 5,481 5,136 5,792 4,970 5,912 5,306 21 To others 1,815 1,486 1,006 942 496 1,021 609 706 650 22 Other loans and leases, gross 177,926 178,388 178,362 177,614 180,168 177,349 179,504 178,682 179,167 23 Other loans, gross 172,188 172,633 172,618 171,863 174,436 171,628 173,760 172,930 173,429 24 Commercial and industrial 57,068 56,716 56,837 57,291 58,210 57,715 58,052 57,837 57,158 25 Bankers acceptances and commercial paper 148 141 161 164 153 145 138 141 142 26 All other 56,920 56,575 56,676 57,126 58,056 57,571 57,914 57,6% 57,016 27 U.S. addressees 56,209 55,971 56,045 56,475 57,430 56,961 57,169 57,103 56,474 28 Non-U.S. addressees 711 604 630 651 626 609 745 594 542 29 Real estate loans 62,354 62,465 62,613 62,522 62,369 62,498 62,626 62,912 62,6% 30 Revolving, home equity 4,329 4,334 4,344 4,356 4,364 4,359 4,363 4,371 4,372 31 All other 58,024 58,130 58,270 58,166 58,005 58,139 58,263 58,541 58,325 32 To individuals for personal expenditures 19,878 20,004 19,940 20,016 19,969 19,956 20,013 20,011 19,886 33 To depository and financial institutions 17,340 18,848 18,554 17,595 18,572 17,566 17,917 17,756 18,228 34 Commercial banks in the United States 6,340 6,927 6,929 6,523 6,438 5,818 5,741 5,960 6,5% 35 Banks in foreign countries 2,884 3,563 3,462 2,966 3,642 3,098 3,323 3,261 3,347 36 Nonbank depository and other financial institutions 8,116 8,358 8,163 8,106 8,492 8,649 8,852 8,535 8,285 37 For purchasing and carrying securities 4,737 4,380 4,413 4,440 5,284 4,327 4,952 4,112 4,951 38 To finance agricultural production 164 150 164 160 153 169 168 172 172 39 To states and political subdivisions 4,398 4,395 4,311 4,293 4,343 4,318 4,337 4,331 4,328 40 To foreign governments and official institutions 314 402 406 275 199 232 308 367 276 41 All other 5,936 5,272 5,379 5,271 5,336 4,845 5,386 5,433 5,734 42 Lease financing receivables 5,738 5,754 5,744 5,751 5,732 5,722 5,744 5,752 5,738 43 LESS: Unearned income 1,844 1,833 1,834 1,831 1,810 1,810 1,809 1,810 1,809 44 Loan and lease reserve 13,478 14,102 14,119 14,104 14,183 14,217 14,273 14,281 14,258 45 Other loans and leases, net6 162,604 162,452 162,409 161,679 164,176 161,322 163,422 162,592 163,100 46 All other assets 60,862 61,171 58,652' 54,255' 56,300 56,490 56,951 57,408 59,626 47 Total assets 307,963 307,566 298,225' 288,796' 298,238 292,751 300,716 292,525 296,716 Deposits 48 Demand deposits 46,530 49,726 46,493 43,428 45,437 43,309 47,383 44,282 46,534 49 Individuals, partnerships, and corporations 32,124 35,093 32,725 30,746 31,968 31,030 34,376 31,332 32,590 50 States and political subdivisions 868 582 594 577 641 632 536 626 777 51 U.S. government 198 122 153 183 294 121 179 235 102 52 Depository institutions in the United States 4,853 5,193 5,379 4,632 4,482 3,729 4,392 3,692 4,009 53 Banks in foreign countries 4,832 5,053 4,522 3,955 4,752 4,442 4,839 4,628 4,119 54 Foreign governments and official institutions 598 542 619 538 419 510 390 454 494 55 Certified and officers' checks 3,058 3,140 2,501 2,797 22,,888822 22,,884466 22,,667700 33,,331155 44,,444433 56 Transaction balances other than demand deposits (ATS, NOW, Super NOW, telephone transfers) 8,646 8,648 8,431 8,278 8,406 8,589 8,528 8,598 8,376 57 Nontransaction balances 113,013 112,888 113,086 112,095 112,559 112,428 113,004 112,350 112,076 58 Individuals, partnerships, and corporations 105,366 105,156 105,355 104,268 104,752 104,926 105,448 104,749 104,444 59 States and political subdivisions 5,391 5,485 5,522 5,630 5,631 5,695 5,753 5,916 5,980 60 U.S. government 128 124 122 119 119 117 112 112 118 61 Depository institutions in the United States 1,612 1,586 1,548 1,546 1,527 1,526 1,523 1,404 1,362 62 Foreign governments, official institutions, and banks 516 537 537 532 530 164 167 170 170 63 Liabilities for borrowed money 72,747 70,874 63,691 58,722 62,290 63,075 66,637 59,714 61,164 64 Borrowings from Federal Reserve Banks 0 0 0 0 0 0 0 0 0 65 Treasury tax-and-loan notes 2,262 911 2,534 5,486 5,010 1,979 2,074 2,489 3,158 66 All other liabilities for borrowed money 70,486 69,963 61,156 53,236 57,279 61,0% 64,563 57,224 58,006 67 Other liabilities and subordinated notes and debentures 41,425 40,210 41,546' 41,332' 44,093 40,220 40,048 42,603 43,764 68 Total liabilities 282,362 282,346 273,247' 263,855' 272,785 267,623 275,601 267,548 271,914 69 Residual (total assets minus total liabilities)9 25,601 25,219 24,978 24,941 25,452 25,128 25,115 24,977 24,802 MEMO 70 Total loans and leases (gross) and investments adjusted2'10 216,182 215,384 215,179 213,852 216,338 215,162 215,969 214,874 213,472 71 Total loans and leases (gross) adjusted1 179,569 178,855 178,534 177,514 179,362 178,344 179,342 179,341 178,527 72 Time deposits in amounts of $100,000 or more 35,699 35,626 36,222 35,328 35,893 35,415 35,244 34,950 34,817 73 U.S. Treasury securities maturing in one year or less 1,746 1,764 1,846 1,862 1,791 2,051 2,235 2,386 2,191 1. These data also appear in the Board's H.4.2 (504) release. For address, see 7. Includes trading account securities. inside front cover. 8. Includes federal funds purchased and securities sold under agreements to 2. Excludes trading account securities. repurchase. 3. Not available due to confidentiality. 9. Not a measure of equity capital for use in capital adequacy analysis or for 4. Includes U.S. government-issued or guaranteed certificates of participation other analytic uses. in pools of residential mortgages. 10. Exclusive of loans and federal funds transactions with domestic commer- 5. Includes securities purchased under agreements to resell. cial banks. Digitized for FRA6S. EInRcl udes 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 Oct. 3 Oct. 10 Oct. 17' Oct. 24 Oct. 31 Nov. 7 Nov. 14 Nov. 21 1 Cash and due from depository institutions .. 14,691 15,098 15,072 14,164 17,374 16,515 17,455 14,711 15.292 2 Total loans and securities 159,203 162,092' 160,433 161,954 163,673 162,167 167,122 164,016 167,729 3 U.S. Treasury and government agency securities 10,740 10,869 10,961 11,061 11,296 11,752 12,068 11,157 11,161 4 Other securities. 7,415 7,372 7,332 7,235 7,480 7,599 7,626 7,618 7,639 5 Federal funds sold2 8,628 10,405' 8,125 8,425 7,600 4,304 9,174 6,078 8,905 6 To commercial banks in the United States 7,589 8,155 5,505 5,331 4,334 2,267 6,449 4,471 6,418 7 To others 1,039 2,250' 2,620 3,094 3,266 2,037 2,725 1,607 2,487 8 Other loans, gross 132,420 133,446' 134,015 135,233 137.297 138,512 138,254 139,163 140,024 9 Commercial and industrial 76,316' 76,374' 76,270 76,920 77.665 77,877 78,198 78,940 79,544 10 Bankers acceptances and commercial paper 2,577' 2,558' 2,426 2,840 2,579 2,682 2,694 2,895 3,020 11 All other 73,739' 73,816' 73,844 74,080 75,086 75,195 75,504 76,045 76,524 12 U.S. addressees 72,355' 72,424' 72,477 72,658 73.666 73,660 73,939 74,509 74,860 13 Non-U.S. addressees 1,384 1,392 1,367 1,422 1,420 1,535 1,565 1,536 1,664 14 Loans secured by real estate3 24,974 25,135 25,332 25,307 25,492 25,700 25,585 25,769 26,003 15 To financial institutions 26,279' 26,987' 28,222 29,354 30,376 30,787 30,539 30,277 30,274 16 Commercial banks in the United States. 18,616' 19,588' 20,386 21,356 22,374 23,195 23,424 23,343 23.293 17 Banks in foreign countries 2,358 2,179 2,609 2,728 2,730 2,416 1,828 1,769 1.697 18 Nonbank financial institutions 5,305 5,220 5,227 5,270 5,272 5,176 5,287 5,165 5.284 19 To foreign governments and official institutions 201 207 194 194 199 204 213 216 207 20 For purchasing and carrying securities ... 3,144' 3,287' 2,360 1,893 1,561 1,582 1,371 1,581 1,609 21 All other3 1,506 1,456 1,637 1,565 2,004 2,362 2,348 2,380 2,387 22 Other assets (claims on nonrelated parties) . 30,708 31,430 31,344 31,960 33,200 33,593 33,227 33,917 33.742 23 Net due from related institutions 10,165 9,989 11.004 11,010 12,980 13,286 12,766 12,985 10,456 24 Total assets 214,767 218,611 217,852 219,091 227,228 225,563 230,570 225,629 227,221 25 Deposits or credit balances due to other than directly related institutions —. 47,134' 46,240' 46.005 45,559 45,527 45,359 45.048 44,904 44,701 26 Transaction accounts and credit balances4 4,260' 4,429 4,297 4,128 4,054 3,913 3,999 4,313 4,405 27 Individuals, partnerships, and corporations 2,868' 2,932 2,863 2,648 2,734 2,685 2,690 2,987 2,929 28 Other 1,392' 1,497 1,434 1,480 1,320 1,228 1,309 1,326 1,476 29 Nontransaction accounts 42,874 41,811' 41,708 41,431 41,473 41,446 41.049 40,591 40,296 30 Individuals, partnerships, and corporations 33,549 32,962 32,861 32,145 32,040 31,902 31,566 31,195 30,961 31 Other 9,325 8,849' 8,847 9,286 9,433 9,544 9,483 9,396 9,335 32 Borrowings from other than directly related institutions 104,904 108,607' 108,372 113,640 118.298 116,939 117,215 116,206 110,249 33 Federal funds purchased6 53,347 52,620' 50,847 53,611 55,695 52,248 52,394 44,106 44,281 34 From commercial banks in the United States 27,516 25,505 25.013 24,515 29,047 25,489 23,535 22,070 21,228 35 From others 25,831 27,115' 25,834 29,096 26,648 26,759 28,859 22,036 23,053 36 Other liabilities for borrowed money 51,557 55,987 57,525 60,029 62,603 64,691 64,821 72,100 65,968 37 To commercial banks in the United States 28,063 29,388 31.014 32,794 35,334 36,065 35,830 38,703 38,432 38 To others 23,494 26,599 26,511 27,235 27,269 28,626 28,991 33,397 27,536 39 Other liabilities to nonrelated parties 30,737' 31,747 31,932 31,926 32,964 33,096 33,056 33,463 33,598 40 Net due to related institutions 31,992 32,017 31,542 27,965 30,438 30,166 35,250 31,057 38,672 41 Total liabilities 214,767 218,611 217,852 219,091 227,228 225,563 230,570 225,629 227,221 MEMO 42 Total loans (gross) and securities adjusted7 . 132,998' 134,349' 134,542 135,267 136,965 136,705 137,249 136,202 138,018 43 Total loans (gross) adjusted 114,843' 116,108' 116,249 116,971 118,189 117,354 117,555 117,427 119,218 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 • February 1991 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 11998855 11998866 11998877 11998888 DDeecc.. DDeecc.. DDeecc.. DDeecc.. June Sept. Dec. Mar. June Sept. 1 AU holders—Individuals, partnerships, and corporations 321.0 363.6 343.5 354.7 329.3 337.3 352.2 328.7 334.3 t 2 Financial business 32.3 41.4 36.3 38.6 33.0 33.7 33.8 34.1 34.9 1 3 Nonfinancial business 178.5 202.0 191.9 201.2 185.9 190.4 202.5 183.3 186.5 n.a. 4 Consumer 85.5 91.1 90.0 88.3 86.6 87.9 90.3 86.6 86.4 1 5 Foreign 3.5 3.3 3.4 3.7 2.9 2.9 3.1 3.0 3.1 I 6 Other 21.2 25.8 21.9 22.8 21.0 22.4 22.5 21.7 23.5 Weekly reporting banks 1989 1990 11998855 11998866 11998877 11998888 DDeecc.. DDeecc.. DDeecc.. DDeecc.. June Sept. Dec. Mar. June Sept. 7 All holders—Individuals, partnerships, and corporations 168.6 195.1 183.8 198.3 182.2 186.6 196.7 183.7 186.3 185.1 8 Financial business 25.9 32.5 28.6 30.5 25.4 26.3 27.6 25.6 25.0 27.0 9 Nonfinancial business 94.5 106.4 100.0 108.7 99.8 101.6 108.8 100.1 101.7 100.0 10 Consumer 33.2 37.5 39.1 42.6 42.4 43.0 44.1 42.4 43.3 43.1 11 Foreign 3.1 3.3 3.3 3.6 2.9 2.8 3.0 2.8 2.9 2.8 12 Other 12.0 15.4 12.7 12.9 11.7 12.9 13.2 12.8 13.3 12.3 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 1990 1985 1986 1987 1988 1989 IInnssttrruummeenntt Dec. Dec. Dec. Dec. Dec. May June July Aug. Sept. Oct. Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 298,779 329,991 358,056 457,297 529,055 538,686 537,023 545,849 546,691 559,593' 557,731 Financial companies1 Dealer-placed paper 2 Total 78,443 101,072 102,844 160,094 187,084 186,155 191,463 199,466 199,099 205,093 203,987 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 paper4 4 Total 135,320 115511,,882200 173,980 194,537 212,210 209,203 202,101 202,829 202,217 204,065 204,273 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 81,232 102,666 129,761 143,328 143,459 143,554 145,375 150,435' 149,471 Bankers dollar acceptances (not seasonally adjusted)6 7 Total 68,413 64,974 70,565 66,631 62,972 54,766 53,750 52,006 52,324 50,469 52,093 Holder 8 Accepting banks 11,197 13,423 10,943 9,086 9,433 9,000 9,972 9,628 9,944 9,366 9,189 9 Own bills 9,471 11,707 9,464 8,022 8,510 7,632 8,639 8,395 7,895 7,944 7,868 10 Bills bought 1,726 1,716 1,479 1,064 924 1,368 1,332 1,233 2,049 1,421 1,321 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 1,291 1,507 1,571 1,560 1,333 1,145 13 Others 56,279 50,234 58,658 56,052 52,473 44,475 42,271 40,806 40,821 39,770 41,760 Basis 14 Imports into United States 15,147 14,670 16,483 14,984 15,651 13,993 14,801 13,691 13,188 12,723 12,408 15 Exports from United States 13,204 12,960 15,227 14,410 13,683 12,727 12,511 12,186 12,221 11,889 13,238 16 All other 40,062 37,344 38,855 37,237 33,638 28,046 26,438 26,129 26,915 25,856 26,447 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 Date of change Rate Av r e a r te a ge Av r e a r t a e ge Av r e a r t a e ge 1988— Feb. 2 8.50 1988—Jan. ... 8.75 1989—Jan. ... 10.50 1990—Jan. ... 10.11 May 11 9.00 Feb. .. 8.51 Feb. .. 10.93 Feb. .. 10.00 July 14 9.50 Mar. .. 8.50 Mar. .. 11.50 Mar. . 10.00 Aug. 11 10.00 Apr. .. 8.50 Apr. . 11.50 Apr. . 10.00 1989— N Fe o b v . . 2 1 8 0 1 1 0 1 . .0 50 0 J M u a n y e .. . . . 8 9 . . 8 0 4 0 J M u a n y e .. . . . 1 1 1 1 . .0 5 7 0 June .. 1 1 0 0 . . 0 0 0 0 June 2 5 4 1 1 1 1 . .0 50 0 J A u u ly g . .. . . . 9 9 . . 8 2 4 9 J A u u ly g . .. . . . 1 1 0 0 . . 5 9 0 8 A Ju u ly g . . . . . . 1 1 0 0 . . 0 0 0 0 July 31 10.50 Sept. .. 10.00 Sept. .. 10.50 Sept. .. 10.00 1990— Jan. 8 10.00 Oct. ... 10.00 Oct. ... 10.50 Oct. ... 10.00 1988 9.32 Nov. .. 10.05 Nov. .. 10.50 Nov. .. 10.00 1989 10.87 Dec. .. 10.50 Dec. 10.50 Dec. 10.00 1990 10.01 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 • February 1991 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. 1990 1990, week ending Instrument 11998877 11998888 11998899 Aug. Sept. Oct. Nov. Nov. 2 Nov. 9 Nov. 16 Nov. 23 MONEY MARKET RATES 1 Federal funds1'2'3 6.66 7.57 9.21 8.13 8.20 8.11 7.81 8.17 7.97 7.94 7.80 2 Discount window borrowing2'11 5.66 6.20 6.93 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 Commercial paper3 '5 3 1-month 6.74 7.58 9.11 7.99 8.09 8.04 7.84 7.85 7.89 7.87 7.79 4 3-month 6.82 7.66 8.99 7.88 7.96 7.98 7.91 7.84 7.87 7.88 7.85 5 6-month 6.85 7.68 8.80 7.77 7.83 7.81 7.74 7.71 7.72 7.70 7.68 Finance paper, directly placed3-4,6 6 1-month 6.61 7.44 8.99 7.88 7.98 7.92 7.64 7.73 7.78 7.73 7.49 7 3-month 6.54 7.38 8.72 7.69 7.74 7.80 7.75 7.70 7.79 7.73 7.71 8 6-month 6.37 7.14 8.16 7.46 7.50 7.50 7.42 7.44 7.47 7.41 7.37 Bankers acceptances3'4' 9 3-month 6.75 7.56 8.87 7.75 7.83 7.85 7.82 7.71 7.78 7.74 7.80 10 6-month 6.78 7.60 8.67 7.64 7.70 7.67 7.58 7.58 7.58 7.48 7.51 Certificates of deposit, secondary market3'8 11 1-month 6.75 7.59 9.11 7.98 8.08 8.03 7.92 7.89 7.93 7.86 7.83 12 3-month 6.87 7.73 9.09 7.97 8.06 8.06 8.03 7.95 7.98 7.95 7.97 13 6-month 7.01 7.91 9.08 7.99 8.06 8.05 7.95 7.94 7.95 7.87 7.87 14 Eurodollar deposits, 3-month3,9 7.07 7.85 9.16 7.99 8.07 8.06 8.04 7.95 7.95 7.98 7.99 U.S. Treasury bills Secondary market3,4 15 3-month 5.78 6.67 8.11 7.45 7.36 7.17 7.06 7.11 7.08 7.07 7.07 16 6-month 6.03 6.91 8.03 7.38 7.32 7.16 7.03 7.08 7.05 7.03 7.03 17 1-year 6.33 7.13 7.92 7.26 7.24 7.06 6.85 6.93 6.88 6.84 6.82 Auction average 4,12 18 3-month 5.82 6.68 8.12 7.44 7.38 7.19 7.07 7.12 7.07 7.05 7.08 19 6-month 6.03 6.92 8.04 7.36 7.33 7.20 7.04 7.13 7.05 7.02 7.05 20 1-year 6.33 7.17 7.91 7.37 7.25 7.01 6.81 n.a. n.a. n.a. 6.81 CAPITAL MARKET RATES U.S. Treasury notes and bonds Constant maturities 21 1-year 6.77 7.65 8.53 7.78 7.76 7.55 7.31 7.41 7.35 7.30 7.29 22 2-year 7.42 8.10 8.57 8.06 8.08 7.88 7.60 7.75 7.65 7.59 7.58 23 3-year 7.68 8.26 8.55 8.22 8.27 8.07 7.74 7.95 7.81 7.70 7.69 24 5-year 7.94 8.47 8.50 8.44 8.51 8.33 8.02 8.22 8.13 8.00 7.96 25 7-year 8.23 8.71 8.52 8.64 8.79 8.59 8.28 8.49 8.39 8.24 8.19 26 10-year 8.39 8.85 8.49 8.75 8.89 8.72 8.39 8.64 8.53 8.35 8.30 27 Com 3 p 0 o - s y it e e a 1 r 4 8.59 8.96 8.45 8.86 9.03 8.86 8.54 8.77 8.67 8.51 8.47 28 Over 10 years (long-term) 8.64 8.98 8.58 8.97 9.11 8.93 8.60 8.84 8.73 8.56 8.53 State and local notes and bonds Moody's series15 29 Aaa 7.14 7.36 7.00 6.99 7.18 7.23 6.75 7.00 6.38 6.80 6.80 3 3 1 0 Bon B d a a Buyer series16 7 8 . . 6 1 3 7 7 7 . . 6 8 8 3 7 7 . . 2 4 3 0 7 7 . . 3 2 2 1 7 7 . . 4 4 3 8 7 7 . . 4 4 9 3 7 7. . 2 1 2 8 7 7 . . 2 3 9 0 7 7 . . 2 1 4 5 7 7 . . 1 2 5 3 7 7 . . 1 2 3 3 Corporate bonds Seasoned issues17 32 All industries 9.91 10.18 9.66 9.84 10.02 10.03 9.85 10.00 9.95 9.85 9.78 33 Aaa 9.38 9.71 9.26 9.41 9.56 9.53 9.30 9.47 9.38 9.30 9.25 34 Aa 9.68 9.94 9.46 9.63 9.77 9.77 9.59 9.71 9.67 9.58 9.53 35 A 9.99 10.24 9.74 9.89 10.09 10.06 9.88 10.05 9.97 9.88 9.80 36 Baa 10.58 10.83 10.18 10.41 10.64 10.74 10.62 10.76 10.75 10.64 10.52 37 ME A M -r O at : e D d, i v re id ce e n n t d ly /p r o i f c f e e re r d at u io ti 1 t 9 i ty bonds' 9.96 10.20 9.79 10.29 10.28 10.23 10.07 10.11 10.15 10.03 10.03 38 Preferred stocks 8.37 9.23 9.05 8.97 9.05 9.10 8.88 8.96 8.90 8.80 8.90 39 Common stocks 3.08 3.64 3.45 3.65 3.85 4.01 3.91 4.03 4.02 3.84 3.90 1. The daily effective federal funds rate is a weighted average of rates on 13. Yields on actively traded issues adjusted to constant maturities. Source: trades through N.Y. brokers. U.S. Treasury. 2. Weekly figures are averages of 7 calendar days ending on Wednesday of the 14. Unweighted average of rates on all outstanding bonds neither due nor current week; monthly figures include each calendar day in the month. callable in less than 10 years, including one very low yielding "flower"bond. 3. Annualized using a 360-day year or bank interest. 15. General obligation based on Thursday figures; Moody's Investors Service. 4. Quoted on a discount basis. 16. General obligations only, with 20 years to maturity, issued by 20 state and 5. An average of offering rates on commercial paper placed by several leading local governmental units of mixed quality. Based on figures for Thursday. dealers for firms whose bond rating is AA or the equivalent. 17. Daily figures from Moody's Investors Service. Based on yields to maturity 6. An average of offering rates on paper directly placed by finance companies. on selected long-term bonds. 7. Representative closing yields for acceptances of the highest rated money 18. Compilation of the Federal Reserve. This series is an estimate of the yield center banks. on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of 8. An average of dealer offering rates on nationally traded certificates of call protection. Weekly data are based on Friday quotations. deposit. 19. Standard and Poor's corporate series. Preferred stock ratio based on a 9. Bid rates for Eurodollar deposits at 11 a.m. London time. sample of ten issues: four public utilities, four industrials, one financial, and one 10. One of several base rates used by banks to price short-term business loans. transportation. Common stock ratios on the 500 stocks in the price index. 11. Rate for the Federal Reserve Bank of New York. NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases. 12. Auction date for daily data; weekly and monthly averages computed on an For address, see inside front cover. issue-date basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A23 1.36 STOCK MARKET Selected Statistics 1990 11998877 11998888 11998899 Mar. Apr. May June July Aug. Sept. Oct. Nov. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 161.78 149.97 180.13 186.26 185.61 191.35 196.68 196.61 181.45 173.22 168.05 172.21 2 Industrial 195.31 180.83 228.04 226.14 226.86 234.85 242.42 245.86 226.73 216.81 208.58 212.81 3 Transportation 140.52 134.09 174.90 175.08 173.54 173.53 177.37 173.18 147.41 136.95 131.99 132.96 4 Utility 74.29 72.22 94.33 92.99 91.92 93.29 93.65 89.85 85.81 83.30 87.27 89.69 5 Finance 146.48 127.41 162.01 143.14 138.57 142.94 147.93 143.11 128.14 118.59 108.01 113.76 6 Standard & Poor's Corporation (1941-43 = 10)1 287.00 265.88 323.05 338.47 338.18 350.25 360.39 360.03 330.75 315.41 307.12 315.29 7 American Stock Exchange (Aug. 31, 1973 = 50? 316.78 295.08 356.67 360.77 353.32 353.82 361.62 359.09 333.49 318.53 296.67 294.88 Volume of trading (thousands of shares) 8 New York Stock Exchange 188,922 161,386 165,568 149,240 140,062 163,486 153,634 160,490 174,446 142,054 159,590 149,916 9 American Stock Exchange 13,832 9,955 13,124 15,133 13,961 14,005 12,421 12,529 15,881 11,668 11,294 10,368 Customer financing (end-of-period balances, in millions of dollars) 10 Margin credit at broker-dealers3 31,990 32,740 34,320 30,760 31,060 31,600 31,720 32,130 30,350 29,640 28,650 27,820 Free credit balances at brokers4 11 Margin-account 4,750 5,660 7,040 6,525 6,465 6,215 6,490 6,385 7,140 7,285 7,245 7,300 12 Cash-account 15,640 16,595 18,505 16,510 15,375 15,470 15,625 17,035 16,745 16,185 15,820 17,025 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 0 65 55 65 50 14 Convertible bonds 50 60 50 50 50 50 15 Short sales 70 8 0 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 DomesticN onfinancial Statistics • February 1991 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1989 1990 AAccccoouunntt 11998877 11998888 Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. SAIF-insured institutions 1 Assets 1,250,855 1,350,500 1,249,055 1,236,517 1,225,087 1,223,350 1,210,351 1,197,828 1,174,632 1,162,605 2 Mortgages 721,593 764,513 733,729 727,559 721,450 717,687 715,416 708,538 691,244 689,700 3 Mortgage-backed securities 201,828 214,587 170,532 169,414 167,260 167,683 166,167 165,725 115599,,117722 157,113 4 Contra-assets to mortgage assets1 . 42,344 37,950 25,457 24,162 22,729 23,073 21,991 21,977 20,344 23,390 5 Commercial loans 23,163 33,889 32,150 31,911 31,770 31,069 30,931 30,352 28,753 28,482 6 Consumer loans 57,902 61,922 58,685 57,321 56,821 56,805 56,639 55,658 55,171 54,655 7 Contra-assets to nonmortgage loans2 . 3,467 3,056 3,592 2,251 2,279 2,476 2,229 1,766 1,976 1,966 8 Cash and investment securities 169,717 186,986 166,053 160,519 157,314 162,313 153,346 152,393 155,688 149,368 n.a. n.a. 9 Other3 122,462 129,610 116,955 116,206 115,480 113,341 112,071 108,904 106,924 108,643 10 Liabilities and net worth . 1,250,855 1,350,500 1,249,055 1,236,517 1,225,087 1,223,350 1,210,351 1,197,828 1,174,632 1,162,605 11 Savings capital 932,616 971,700 945,656 933,835 926,439 929,910 916,069 902,642 890,497 884,963 12 Borrowed money 249,917 299,400 252,230 252,942 248,135 246,875 246,646 241,983 230,169 222,441 13 FHLBB 116,363 134,168 124,577 121,732 120,633 117,489 115,620 114,047 109,733 106,127 14 Other 133,554 165,232 127,653 131,210 127,502 129,386 131,026 127,936 120,436 116,314 15 Other 21,941 24,216 27,556 26,987 28,096 25,997 27,352 28,767 25,166 26,746 16 Net worth n.a. n.a. 23,612 22,754 22,417 20,568 20,296 24,361 28,805 28,455 SAIF-insured federal savings banks 17 Assets 284,270 425,966 498,522 583,063 581,983 595,644 593,345 570,795 583,392 587,521 18 Mortgages 161,926 230,734 283,844 331,503 330,366 332,995 333,300 317,985 323,516 327,330 19 Mortgage-backed securities 45,826 64,957 70,499 76,765 77,016 80,059 81,030 77,781 78,001 78,033 20 Contra-assets to mortgage assets1 . 9,100 13,140 13,548 12,309 11,615 11,844 11,590 10,798 10,200 13,849 21 Commercial loans 6,504 16,731 18,143 20,310 20,244 20,366 20,324 19,713 19,683 19,815 22 Consumer loans 17,6% 24,222 28,212 20,310 20,244 20,365 20,324 32,407 32,745 33,308 23 Contra-assets to nonmortgage loans . 678 889 1,193 949 986 1,001 908 707 970 999 24 Finance leases plus interest 591 880 1,101 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 25 Cash and investment ... 35,347 61,029 64,538 70,742 70,054 76,158 72,618 70,999 75,081 71,795 26 Other 24,069 35,412 39,981 45,444 46,238 46,371 46,180 44,840 47,723 45,996 27 Liabilities and net worth . 284,270 425,966 498,522 583,063 581,983 595,644 593,345 570,795 583,392 587,521 28 Savings capital 203,1% 298,197 360,547 418,555 419,246 433,000 429,469 413,009 427,379 432,387 29 Borrowed money 60,716 99,286 108,448 126,398 124,171 126,253 126,240 123,415 121,721 119,998 30 FHLBB 29,617 46,265 57,032 63,516 63,026 63,550 63,120 61,057 60,666 61,442 31 Other 31,099 53,021 51,416 62,882 61,145 62,703 63,120 62,358 61,055 58,556 32 Other 5,324 8,075 9,041 9,770 10,347 9,435 9,982 10,307 8,889 9,508 33 Net worth 15,034 20,218 22,716 25,986 25,723 24,169 23,505 21,138 21,944 22,373 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A23 1.37—Continued 1989 1990 AAccccoouunntt 11998877 11998888 Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Credit unions4 34 Total assets/liabilities and capital 174,593 183,688 183,301 186,119 192,718 193,208 195,020 195,302 194,523 35 Federal 114,566 120,666 120,489 122,885 126,690 127,250 128,648 128,142 127,564 36 State 60,027 63,022 62,812 63,234 66,028 65,958 66,372 67,160 66,959 37 Loans outstanding.. 113,191 122,608 122,332 121,968 121,660 122,616 123,205 123,968 124,343 38 Federal 73,766 80,272 80,041 79,715 79,407 80,205 80,550 81,063 81,063 39 State 39,425 42,336 42,291 42,253 42,253 42,411 42,655 42,905 43,280 40 Savings 159,010 167,371 166,629 168,609 175,942 175,745 176,701 178,127 176,360 41 Federal 104,431 109,653 109,818 111,246 115,714 115,554 116,402 116,717 115,305 42 State 54,579 57,718 56,811 57,363 60,228 60,191 60,299 61,408 61,056 Life insurance companies5 43 Assets 1,044,459 1,166,870 1,299,756 Securities 44 Government 84,426 84,051 77,297 45 United States6 57,078 58,564 52,517 46 State and local 10,681 9,136 9,028 47 Foreign 16,667 16,351 15,752 48 Business 569,199 660,416 764,521 49 Bonds 472,684 556,043 638,907 50 Stocks 96,515 104,373 125,614 51 Mortgages 203,545 232,863 254,215 52 Real estate 34,172 37,371 39,908 53 Policy loans .... 53,626 54,236 57,439 54 Other assets 89,586 93,358 106,376 1. Contra-assets are credit-balance accounts that must be subtracted from the 7. Issues of foreign governments and their subdivisions and bonds of the corresponding gross asset categories to yield net asset levels. Contra-assets to International Bank for Reconstruction and Development. mortgage loans, contracts, and pass-through securities include loans in process, NOTE. SAIF-insured institutions: Estimates by the OTS for all institutions unearned discounts and deferred loan fees, valuation allowances for mortgages insured by the SAIF and based on the OTS thrift Financial Report. "held for sale," and specific reserves and other valuation allowances. SAIF-insured federal savings banks: Estimates by the OTS for federal savings 2. Contra-assets are credit-balance accounts that must be subtracted from the banks insured by the SAIF and based on the OTS thrift Financial Report. corresponding gross asset categories to yield net asset levels. Contra-assets to Credit unions: Estimates by the National Credit Union Administration for nonmortgage loans include loans in process, unearned discounts and deferred loan federally chartered and federally insured state-chartered credit unions serving fees, and specific reserves and valuation allowances. natural persons. 3. Holding of stock in Federal Home Loan Bank and Finance leases plus Life insurance companies: Estimates of the American Council of Life Insurance interest are included in "Other" (line 9). for all life insurance companies in the United States. Annual figures are annual- 4. Data include all federally insured credit unions, both federal and state statement asset values, with bonds carried on an amortized basis and stocks at chartered, serving natural persons. year-end market value. Adjustments for interest due and accrued and for 5. Data are no longer available on a monthly basis for life insurance companies. differences between market and book values are not made on each item separately 6. Direct and guaranteed obligations. Excludes federal agency issues not but are included, in total, in "other assets." guaranteed, which are shown in the table under "Business" securities. As of June 1989 Savings bank data are no longer available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 DomesticN onfinancial Statistics • February 1991 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll FFFiiissscccaaalll TTTyyypppeee ooofff aaaccccccooouuunnnttt ooorrr ooopppeeerrraaatttiiiooonnn yyyeeeaaarrr yyyeeeaaarrr yyyeeeaaarrr 1990 111999888888 111999888999 111999999000 June July Aug. Sept. Oct. Nov. U.S. budget1 1 Receipts, total 908,166 990,701 1,031,463 110,614 72,357 78,486 102,874 78,711 72,819 2 On-budget 666,675 727,035 749,809 83,717 50,446 56,284 78,542 58,751 47,843 3 Off-budget 241,491 263,666 281,654 26,897 21,911 22,202 24,332 19,960 24,976 4 Outlays, total 1,063,318 1,144,020 1,251,850 121,719 98,280 131,206 82,026 110,173 120,869 5 On-budget 860,627 933,109 1,026,785 105,759 79,833 89,717 80,613 91,261 99,421 6 Off-budget 202,691 210,911 225,065 15,960 18,447 41,489 1,413 18,912 21,448 7 Surplus, or deficit (-), total -155,152 -153,319 -220,387 -11,105 -25,924 -52,719 20,848 -31,462 -48,050 8 On-budget -193,952 -206,074 -276,976 -22,042 -29,388 -33,432 -2,071 -32,510 -51,578 9 Off-budget 38,800 52,755 56,589 10,937 3,464 -19,287 22,919 1,048 3,528 Source of financing (total) 10 Borrowing from the public 166,139 141,806 264,453 23,520 24,230 47,329 -2,595 32,265 46,776 11 Operating cash (decrease, or increase (-)) . -7,962 3,425 818 -20,916 9,862 2,433 17,832 4,720 12,533 12 Other -3,025 8,088 -44,884 8,501 -8,168 2,957 -421 -5,523 -11,259 MEMO 13 Treasury operating balance (level, end of period) 44,398 40,973 40,155 34,618 24,756 22,323 40,155 35,435 22,902 14 Federal Reserve Banks 13,023 13,452 7,638 5,470 6,369 4,453 7,638 7,607 5,495 15 Tax and loan accounts 31,375 27,521 32,517 29,148 18,387 17,869 32,517 27,828 17,406 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 A3 3 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1 Millions of dollars Calendar year Fiscal Source or type year year 1990 1989 1990 H2 HI H2 HI Sept. Oct. Nov. RECEIPTS 1 All sources 990,701 1,031,462 449,330 527,574 470,329 548,977 102,874 78,711 72,819 2 Individual income taxes, net 445,690 466,884 200,300 233,572 218,706 243,087 46,664 40,691 27,156 4 3 P W re it s h i h d e e l n d t ial Election Campaign Fund . 361,38 3 6 2 390,48 3 0 2 179,600 4 174,23 2 0 8 193,296 3 190,21 3 9 0 30,806 1 37,777 0 27,505 0 5 Nonwithheld 154,839 149,189 29,880 121,563 33,303 117,675 17,420 3,863 1,606 6 Refunds 70,567 72,817 9,186 62,251 7,898 64,838 1,562 950 1,956 Corporation income taxes 7 Gross receipts 117,015 110,017 56,409 61,585 52,269 58,830 18,868 3,691 2,132 8 Refunds 13,723 16,510 7,250 7,259 6,842 8,326 1,524 2,077 837 9 Social insurance taxes and contributions, net 359,416 380,047 157,603 200,127 162,574 210,476 31,010 26,598 33,723 10 Employment taxes and contributions 332,859 353,891 144,983 184,569 152,407 195,269 30,480 25,144 31,209 11 Se c lf o - n e t m ri p b l u o t y io m n e s nt taxes and 18,504 21,795 3,032 16,371 1,947 19,017 2,638 0 0 12 Unemployment insurance 22,011 21,635 10,359 13,279 7,909 12,929 186 1,082 2,098 13 Other net receipts 4,546 4,522 2,262 2,277 2,260 2,278 344 373 416 14 Excise taxes 34,386 35,345 19,299 16,814 16,799 18,153 2,774 3,011 2,953 15 Customs deposits 16,334 16,707 8,107 7,918 8,667 8,096 1,273 1,528 1,354 16 Estate and gift taxes 8,745 11,500 4,054 4,583 4,451 6,442 875 1,065 845 17 Miscellaneous receipts5 22,839 27,470 10,809 10,235 13,704 12,222 2,934 4,203 5,494 OUTLAYS 18 All types 1,144,020 1,251,850 554,089 565,425 587,448 640,982 82,026 110,173 120,869 19 National defense 303,559 299,335 150,496 148,098 149,613 152,733 21,497 24,990 29,868 2 2 2 2 2 0 1 2 3 4 I G A E N n n e g a te e n t r u i r r e c n g r r u a y a a l l l t t i u r o s e r c n e s i a o e l n u a c r f c e f , e a s i s r p a s a n c d e, e n a v n i d r o t n e m ch e n n o t logy . 1 1 1 9 3 2 6 6 , , , , , 5 7 8 9 1 7 0 3 4 8 4 2 2 8 8 1 1 1 1 2 4 3 7 1 , , , , , 4 4 7 0 9 7 2 0 6 9 0 0 9 0 8 2 5 9 6 1 , , , , , 8 0 6 9 9 5 7 2 1 6 2 2 7 1 6 6 6 2 7 9 , , , , , 2 2 0 6 5 3 2 2 1 6 8 1 2 9 7 5 7 9 4 1 , , , , , 9 0 1 1 4 7 9 3 8 4 1 1 2 3 9 6 7 7 6 1 , , , , , 9 3 4 7 2 7 4 5 7 1 4 3 0 0 6 1 1 - 1 3 , , , 1 9 5 5 3 6 5 1 7 2 7 7 7 1 1 1 , , , 7 5 6 4 6 5 0 7 0 1 1 5 9 9 6 4 3 1 1 , , , , 9 1 2 2 9 9 3 0 6 0 4 1 3 9 3 25 Commerce and housing credit 29,091 67,495 19,836 4,129 22,295 38,672 12,018 8,590 4,276 26 Transportation 27,608 29,495 14,922 12,953 14,982 13,754 2,608 2,780 2,494 27 Community and regional development .. 5,361 8,466 2,690 1,833 4,879 3,987 519 912 1,325 28 Education, training, employment, and social services 36,694 37,479 18,083 18,663 19,537 2,730 3,660 3,120 29 Health 48,390 58,101 23,360 24,078 25,339 29,488 4,804 5,491 5.235 30 Social security and medicare 317,506 346,383 149,017 162,195 162,322 175,997 8,623 28,339 29,973 31 Income security 136,031 148,299 64,978 70,937 67,950 78,475 10,206 12,819 13,758 32 Veterans benefits and services 30,066 29,112 15,797 14,891 14,864 15,217 1,208 2,899 4,033 33 Administration of justice 9,422 10,076 4,361 4,801 4,963 4,983 717 983 1,050 3 3 4 5 G G e e n n e e r r a a l l - g p o u v rp e o rn se m e fi n s t c al assistance n. 9 a , . 1 24 n 1 . 0 a , . 8 22 5,137 0 3,858 0 n 4 .a ,7 . 60 n 4 .a ,9 . 16 n 1 . , a 4 . 06 n 1 . , a 2 . 27 n 1 . , a 8 . 75 3 3 6 7 N U e n t d i i s n t t r e i r b e u s t t e 6 d offsetting receipts i ' - 1 3 6 7 9 , , 2 3 1 1 2 7 - 1 3 8 6 3 , , 6 7 1 9 5 0 -1 7 8 8 , , 7 3 7 1 1 7 -1 8 8 6 , , 1 0 3 0 1 9 -1 8 8 7 , , 9 9 3 2 5 7 -1 9 7 1 , , 6 1 8 5 8 5 - 1 4 5 , , 3 6 2 9 0 7 - 1 3 4 , , 2 7 2 4 2 4 - 1 2 5 , , 7 1 7 3 5 8 1. Functional details do not add to total outlays for calendar year data because 5. Deposits of earnings by Federal Reserve Banks and other miscellaneous revisions to monthly totals have not been distributed among functions. Fiscal year receipts. total for outlays does not correspond to calendar year data because revisions from 6. Net interest function includes interest received by trust funds. the Budget have not been fully distributed across months. 7. Consists of rents and royalties on the outer continental shelf and U.S. 2. Old-age, disability, and hospital insurance, and railroad retirement accounts. government contributions for employee retirement. 3. Old-age, disability, and hospital insurance. SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of 4. Federal employee retirement contributions and civil service retirement and Receipts and Outlays of the U.S. Government, and the U.S. Office of Managedisability fund. ment and Budget, Budget of the U.S. Government, Fiscal Year 1990. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Financial Statistics • February 1991 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1988 1989 1990 IItteemm Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 1 Federal debt outstanding 2,614.6 2,707.3 2,763.6 2,824.0 2,881.1 2,975.5 3,081.9 3,175.5 3,266.1 2 Public debt securities 2,602.2 2,684.4 2,740.9 2,799.9 2,857.4 2,953.0 3,052.0 3,143.8 3,233.3 3 Held by public 2,051.7 2,095.2 2,133.4 2,142.1 2,180.7 2,245.2 2,329.3 2,368.8 n.a. 4 Held by agencies 550.4 589.2 607.5 657.8 676.7 707.8 722.7 775.0 n.a. 5 Agency securities 12.4 22.9 22.7 24.0 23.7 22.5 29.9 31.7 n.a. 6 Held by public 12.2 22.6 22.3 23.6 23.5 22.4 29.8 31.6 n.a. 7 Held by agencies .2 .3 .4 .5 .1 .1 .2 .2 n.a. 8 Debt subject to statutory limit 2,586.9 2,669.1 2,725.6 2,784.6 2,829.8 2,921.7 2,988.9 3,077.0 3,161.2 9 Public debt securities 2,586.7 2,668.9 2,725.5 2,784.3 2,829.5 2,921.4 2,988.6 3,076.6 3,160.9 10 Other debt1 .1 .2 .2 .2 .3 .3 .3 .4 .4 11 MEMO: Statutory debt limit 2,800.0 2,800.0 2,800.0 2,800.0 2,870.0 3,122.7 3,122.7 3,122.7 3,195.0 1. Includes guaranteed debt of Treasury and other federal agencies, specified SOURCES. Treasury Bulletin and Monthly Statement of the Public Debt of the participation certificates, notes to international lending organizations, and District United States. of Columbia stadium bonds. 1.41 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership Billions of dollars, end of period 1989 1990 Type and holder 1986 1987 1988 1989 Q4 Q1 Q2 Q3 1 Total gross public debt 2,214.8 2,431.7 2,684.4 2,953.0 2,953.0 3,052.0 3,143.8 3,233.3 By type 2 Interest-bearing debt 2,212.0 2,428.9 2,663.1 2,931.8 2,931.8 3,029.5 3,121.5 3,210.9 3 Marketable 1,619.0 1,724.7 1,821.3 1.945.4 1.945.4 1.995.3 2,028.0 2,092.8 4 Bills 426.7 389.5 414.0 430.6 430.6 453.1 453.5 482.5 5 Notes 927.5 1,037.9 1,083.6 1.151.5 1.151.5 1.169.4 1,192.7 1,218.1 6 Bonds 249.8 282.5 308.9 348.2 348.2 357.9 366.8 377.2 7 Nonmarketable1 593.1 704.2 841.8 986.4 986.4 1,034.2 1,093.5 1,118.2 8 State and local government series 110.5 139.3 151.5 163.3 163.3 163.5 164.3 161.3 9 Foreign issues 4.7 4.0 6.6 6.8 6.8 37.1 36.4 36.0 10 Government 4.7 4.0 6.6 6.8 6.8 37.1 36.4 36.0 11 Public .0 .0 .0 .0 .0 .0 .0 .0 12 Savings bonds and notes 90.6 99.2 107.6 115.7 115.7 118.0 120.1 122.2 13 Government account series3 386.9 461.3 575.6 695.6 695.6 705.1 758.7 779.4 14 Non-interest-bearing debt 2.8 2.8 21.3 21.2 21.2 22.4 22.3 22.4 By holder4 15 U.S. government agencies and trust funds 403.1 477.6 589.2 707.8 707.8 722.7 775.0 16 Federal Reserve Banks 211.3 222.6 238.4 228.4 228.4 219.3 231.4 17 Private investors 1,602.0 1,731.4 1,858.5 2,015.8 2,015.8 2,115.1 2,135.5 18 Commercial banks 203.5 201.5 193.8 180.6 180.6 182.0 n.a. 19 Money market funds 28.0 14.6 11.8 14.4 14.4 31.3 n.a. 20 Insurance companies 105.6 104.9 107.3 107.9 107.9 108.0 n.a. 21 Other companies 68.8 84.6 87.1 93.8 93.8 95.0 n.a. 22 State and local Treasury s 262.8 284.6 313.6 337.1 337.1 338.0 n.a. Individuals 23 Savings bonds 92.3 101.1 109.6 117.7 117.7 119.9 121.6 24 Other securities 70.4 71.3 79.2 93.8 93.8 95.0 n.a. 25 Foreign and international5 263.4 299.7 362.2 393.4 393.4 386.9 392.7 26 Other miscellaneous investors 506.6 569.1 593.9 674.3 674.3 754.9 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 A3 3 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Millions of dollars, daily averages 1990 1990 IItteemm Aug. Sept. Oct. Oct. 3 Oct. 10 Oct. 17 Oct. 24 Oct. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 IMMEDIATE TRANSACTIONS2 By type of security U.S. government securities 1 Bills 30,568r 31,495r 31,726'" 32,983' 25,797' 27,777 31,295 41,282 31,851 3322,,227711 3333,,332200 3333,,337788 Coupon securities 2 Maturing in less than 3.5 years .. 32,863' 29,379' 29,841r 33,909 30,186 27,030 23,708 36,001 41,958 3344,,448877 2288,,998800 3311,,229933 3 Maturing in 3.5 to 7.5 years 24,493r 22,872' 25,903' 28,914 32,493' 24,794 22,529 21,988 22,988 26,240 24,388 25,151 4 Maturing in 7.5 to 15 years 13,735' 9,707' 11,386 11,437 12,709 10,986 11,436 10,381 20,174 20,286 12,856 9,189 5 Maturing in 15 years or more 15,468' 10,850 13,365 13,472 15,301 14,882 12,318 10,897 15,097 20,234 15,643 10,697 Federal agency securities Debt 6 Maturing in less than 3.5 years .. 4,015 4,535 4,397 5,630 4,365 3,856 3,843 4,784 4,677 4,498 4,598 3,915 7 Maturing in 3.5 to 7.5 years 560 449 534 492 651 422 605 481 789 765 471 461 8 Maturing in 7.5 years or more .. 789 531 836 733 879 1,751 413 364 660 819 717 283 Mortgage-backed 9 Pass-throughs 6,992 9,146 9,005 11,595 9,897 7,206 7,805 9,557 10,145 77,,332233 77,,119944 99,,220099 10 All others 1,415 1,149 1,247 1,313 1,189 1,215 955 1,590 1,171 1,512 1,648 1,482 By type of counterparty Primary dealers and brokers 11 U.S. government securities 7733,,112222'' 6666,,110077'' 7711,,001155 7755,,444466 7733,,774477 6677,,990022 6655,,886644 73,890 80,247 81,064 71,264 66,297 Federal agency 12 Debt securities 1,685 1,773 2,007 2,339 2,207 2,373 1,543 1,705 2,027 2,062 1,885 1,519 13 Mortgage backed securities . 33,,888844 55,,008811 44,,883344 66,,885544 44,,556666 33,,111122 44,,665555 55,,779922 55,,555500 33,,994466 4,409 5,921 Customers 14 U.S. government securities 4444,,000055rr 3388,,119977rr 4411,,220066rr 4455,,226699'' 4422,,773399'' 3377,,556688 3355,,442211 46,658 51,821 52,453 43,923 43,410 Federal agency 15 Debt securities 3,679 3,742 3,760 4,517 3,688 3,656 3,318 3,923 4,099 4,020 3,901 3,139 16 Mortgage-backed securities . 4,523 5,214 5,418 6,054 6,520 5,309 4,106 5,356 5,766 4,889 4,433 4,770 FUTURE AND FORWARD TRANSACTIONS4 By type of deliverable security U.S. government securities 17 Bills 44,,559955 44,,223377rr 33,,669944'' 44,,445511 22,,773366 33,,996699 22,,779922 44,,882266 4,187 4,632 5,142 6,801 Coupon securities 18 Maturing in less than 3.5 years .. 1,696 1,198 1,306 1,545 1,232 1,464 1,385 1,003 2,048 1,651 1,467 1,126 19 Maturing in 3.5 to 7.5 years 691 463 523 839 697 360 501 345 629 646 625 1,169 20 Maturing in 7.5 to 15 years 1,381 925 873 1,231 873 912 795 698 1,171 2,031 917 1,137 21 Maturing in 15 years or more— 1100,,228844 77,,773311 88,,995577 99,,557711 99,,551166 99,,660044 99,,443388 6,902 10,420 12,866 10,013 7,724 Federal agency securities Debt 22 Maturing in less than 3.5 years .. 47 31 81 29 143 88 79 45 24 47 110 6 23 Maturing in 3.5 to 7.5 years 58 113 53 38 37 28 148 11 22 93 24 100 24 Maturing in 7.5 years or more .. 2211 4455 9966'' 115500 191' 54 21 87 26 72 27 17 Mortgage-backed 25 Pass-throughs 8,519 7,607 8,427' 7,351 10,948 9,089 6,966 7,350 7,717 13,008 9,531 6,793 26 All others 1,462 999 721 1,786 274 354 1,051 567 1,541 1,270 604 1,142 OPTION TRANSACTIONS6 By type of underlying securities U.S. government securities 27 Bills 1111 3 60 30 19 108 68 63 21 25 55 177 Coupon securities 28 Maturing in less than 3.5 years .. 693 956 715 1,124 679 704 433 798 600 774 673 634 29 Maturing in 3.5 to 7.5 years 297 309 223 306 216 257 133 234 183 345 174 279 30 Maturing in 7.5 to 15 years 315 190 182 179 243 274 140 72 225 304 91 212 31 Maturing in 15 years or more.... 22,,888800 11,,991188 22,,115522 22,,114422 11,,888800 22,,661122 22,,770044 1,417 2,206 2,410 2,067 2,956 Federal agency securities Debt 32 Maturing in less than 3.5 years .. 2 3 6 1 20 1 0 5 14 7 0 0 33 Maturing in 3.5 to 7.5 years 0 0 0 0 0 0 0 0 0 0 0 0 34 Maturing in 7.5 years or more .. 7 6 0 0 0 0 0 0 0 3 0 0 Mortgage-backed 35 Pass-throughs 524 383 482 268 927 370 371 390 289 653 354 178 36 All others 0 7 1 3 0 0 2 2 0 0 0 0 1. Transactions are market purchases and sales of securities as reported to the Stripped securities are reported at market value by maturity of coupon or corpus. Federal Reserve Bank of New York by the U.S. government securities dealers on 3. Includes securities such as CMOs, REMICs; IOs, and POs. its published list of primary dealers. Averages for transactions are based on the 4. Futures transactions are standardized agreements arranged on an exchange. number of trading days in the period. Immediate, forward, and future transactions Forward transactions are agreements made in the over-the-counter market that are reported at principal value, which does not include accrued interest; option specify delayed delivery. All futures transactions are included regardless of time transactions are reported at the face value of the underlying securities. to delivery. Forward contracts for U.S. government securities and federal agency Dealers report cumulative transactions for each week ending Wednesday. debt securities are included when the time to delivery is more than five days. 2. Transactions for immediate delivery include purchases or sales of securities Forward contracts for mortgage-backed securities are included when the time to (other than mortgage-backed agency securities) for which delivery is scheduled in delivery is more than thirty days. five business days or less and "when-issued" securities that settle on the issue 5. Options transactions are purchases or sales of put and call options, whether date of offering. Transactions for immediate delivery of mortgage-backed securities arranged on an organized exchange or in the over-the-counter market and include include purchases and sales for which delivery is scheduled in thirty days or less. options on futures contracts on U.S. government and federal agency securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • February 1991 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 1990 1990 IItteemm Aug. Sept. Oct. Oct. 3 Oct. 10 Oct. 17 Oct. 24 Oct. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 Positions2 NET IMMEDIATE3 By type of security U.S. government securities 1 Bills 6,815 3,664 3,258 -499 2,025 3,775 2,556 6,284 7,055 13,564 11,531 12,165 Coupon securities 2 Maturing in less than 3.5 years 5,395 -352 -2,016 -1,071 -495 -3,553 -3,097 -1,326 4,103 2,471 2,349 6,978 3 Maturing in 3.5 to 7.5 years -2,645 -5,090 -5,885 -5,570 -6,369 -5,172 -5,884 -6,250 -7,004 -8,212 -6,707 -4,482 4 Maturing in 7.5 to 15 years -5,740 -7,271 -7,044 -7,591 -6,629 -7,396 -6,662 -7,253 -5,500 -5,479 -7,103 -8,381 5 Maturing in 15 years or more -12,241 -14,195 -15,377 -14,173 -15,057 -15,085 -15,399 -16,483 -14,403 -8,074 -10,259 -9,951 Federal agency securities Debt 6 Maturing in less than 3.5 years 4,136 4,047 4,169 4,269 4,672 4,185 4,464 3,314 5,015 4,240 4,222 4,318 7 Maturing in 3.5 to 7.5 years 1,422 1,797 1,737 1,698 1,780 1,845 1,827 1,512 1,702 1,532 1,608 1,627 8 Maturing in 7.5 years or more 2,396 2,128 4,115 2,593 2,612 4,961 4,898 4,640 5,145 4,673 4,494 4,376 Mortgage-backed 9 Pass-throughs 16,696 16,330 17,886 13,311 17,770 22,122 19,287 14,324 20,915 22,783 21,498 19,486 10 All others4^. 0 0 0 0 0 0 0 0 0 0 0 0 Other money market instruments 11 Certificates of deposit 3,129 2,953 2,559 3,210 2,889 2,568 2,171 2,327 2,066 2,265 1,985 1,674 12 Commercial paper 7,489 7,307 6,423 7,590 7,484 6,093 4,769 6,845 6,352 6,436 5,774 5,641 13 Bankers' acceptances 1,193 954 1,214 873 1,122 1,017 1,195 1,668 1,609 1,584 1,460 1,048 FUTURE AND FORWARD5 By type of deliverable security U.S. government securities 14 Bills -15,495 -11,881 -17,120 -12,607 -13,769 -18,581 -18,855 -19,207 -15,303 -14,015 -5,726 -7,454 Coupon securities 15 Maturing in less than 3.5 years -616 -573 -685 -1,124 -935 -170 -705 -742 -2,104 -1,818 -1,491 -1,336 16 Maturing in 3.5 to 7.5 years -1,728 -1,403 -1,541 -1,984 -1,671 -1,696 -1,559 -1,050 -258 -816 -821 -1,232 17 Maturing in 7.5 to 15 years 327 143 -982 -913 -981 -1,067 -1,096 -814 -1,948 -2,101 -1,782 -1,160 18 Maturing in 15 years or more -2,405 90 -2,256 -1,103 -751 -2,323 -3,342 -3,103 -3,999 -7,468 -5,326 -4,677 Federal agency securities Debt 19 Maturing in less than 3.5 years 167 132 166 141 109 123 264 180 77 99 42 37 20 Maturing in 3.5 to 7.5 years 71 76 96 58 79 115 176 29 86 24 48 38 21 Maturing in 7.5 years or more -52 100 118 256 163 22 71 156 2 42 -78 -78 Mortgage-backed 22 Pass-throughs -7,823 -7,683' -8,186' -4,044' -8,024 -11,615 -8,961 -5,919 -10,863 -13,126 -11,766 -9,589 23 All others 0 0 0 0 0 0 0 0 0 0 0 0 Other money market instruments 24 Certificates of deposit 47,770 56,474 86,147 70,761 79,981 86,674 92,928 91,599 104,748 92,247 84,906 68,405 25 Commercial paper -3 0 0 0 0 0 0 0 0 0 0 0 26 Bankers' acceptances 0 0 0 0 0 0 0 0 0 0 0 0 Financing6 Reverse repurchase agreements 27 Overnight and continuing 157,064 159,515 175,353 175,098 169,662 166,622 177,104 118888,,113344 167,660 186,630 155,006 171,250 28 Term 229,319 219,855 226,083 213,308 222,431 225,827 230,502 231,045 243,113 227,169 222,034 207,174 Reverse repurchase agreements 29 Overnight and continuing 234,871 235,588 248,211 239,083 243,629 246,194 256,061 250,874 246,770 266,824 179,908 244,198 30 Term 189,882r 174,627r 183,745' 170,528 178,474 181,163 191,173 189,835 206,851 200,587 239,695 181,378 Securities borrowed 31 Overnight and continuing 45,914 50,783 50,122 50,103 51,733 49,279 48,948 50,536 48,173 46,334 47,273 48,897 32 Term 13,686 18,003 19,182 18,270 18,440 18,916 19,965 19,798 21,814 22,141 22,257 21,987 Securities lent 33 Overnight and continuing 18,951 22,156 20,897 22,899 22,640 20,840 19,962 19,286 18,468 18,584 19,204 18,950 34 Term 446' 1,046' 621' 356 475 659 765 697 5,411 465 691 1,430 Collateralized loans 35 Overnight and continuing 5,058 4,870 4,421 4,694 4,757 4,206 3,954 4,652 3,849 5,036 3,916 4,832 36 Term 691 863 1,101 665 553 1,169 1,820 1,048 1,153 1,075 1,302 821 MEMO: Matched book7 Reverse repurchases 37 Overnight and continuing 100,242 102,856 110,533 111,606 109,117 105,657 112,100 114,796 100,814 115,686 96,976 109,101 38 Term 184,789 178,083 179,414 171,794 177,459 177,937 184,982 180,545 194,837 184,261 173,933 165,374 Repurchases 39 Overnight and continuing 131,250 137,034 141,338 139,980 140,387 138,181 142,267 145,099 129,508 141,554 99,732 132,446 40 Term 148,876 137,764 142,489 132,135 140,675 139,076 147,304 147,338 159,324 154,490 163,100 140,003 1. Data for positions and financing are obtained from reports submitted to the delivery. Forward contracts for U.S. government securities and for federal Federal Reserve Bank of New York by the U.S. government securities dealers on agency debt securities are included when the time to delivery is more than five its published list of primary dealers. Data for positions and financing are averages business days. Forward contracts for mortgage-backed securities are included of close-of-business Wednesday data. when the time to delivery is more than thirty days. 2. Securities positions are reported at market value. 6. Overnight financing refers to agreements made on one business day that 3. Net immediate positions include securities purchased or sold (other than mature on the next business day; continuing contracts are agreements that remain mortgage-backed agency securities) that have been delivered or are scheduled to in effect for more than one business day but have no specific maturity and can be be delivered in five business days or less and "when-issued" securities settle on terminated without a requirement for advance notice by either party; term the issue date of offering. Net immediate positions of mortgage-backed securities agreements have a fixed maturity of more than one business day. include securities purchased or sold that have been delivered or are scheduled to 7. Matched-book data reflect financial intermediation activity in which the be delivered in thirty days or less. borrowing and lending transactions are matched. Matched-book data are included 4. Includes securities such as CMOs, REMICs, IOs, and POs. in the financing breakdowns listed above. The reverse repurchase and repurchase 5. Futures positions are standardized contracts arranged on an exchange. numbers are not always equal due to the "matching" of securities of different Forward positions reflect agreements made in the over-the-counter market that values or types of collateralization. specify delayed delivery. All futures positions are included regardless of time to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A3 3 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1990 AAggeennccyy 11998866 11998877 11998888 11998899 June July Aug. Sept. Oct. 1 Federal and federally sponsored agencies 307,361 341,386 381,498 411,805 422,261 420,529 421,554 421,308 n.a. 2 Federal agencies 36,958 37,981 35,668 35,664 42,015 41,978 42,323 42,420r 42,685 3 Defense Department' 33 13 8 7 7 7 7 7 7 4 Export-Import Bank2,3 14,211 11,978 11,033 10,985 11,150 11,150 11,150 11,346 11,346 5 Federal Housing Administration 138 183 150 328 394 281 316 357 382 6 Government National Mortgage Association participation certificates' 2,165 1,615 0 0 0 0 0 00 00 7 Postal Service6 3,104 6,103 6,142 6,445 6,148 6,148 6,948 6,948 6,948 8 Tennessee Valley Authority 17,222 18,089 18,335 17,899 24,316 24,392 23,902 23,762' 24,002 9 United States Railway Association6 85 0 0 0 0 0 0 0 0 10 Federally sponsored agencies7 270,553 303,405 345,830 375,407 380,245 378,551 379,231 378,388 n.a. 11 Federal Home Loan Banks 88,758 115,727 135,836 136,087 123,021 119,692 118,380 116,336 117,120 12 Federal Home Loan Mortgage Corporation 13,589 17,645 22,797 26,148 31,049 27,716 27,589 27,985 n.a. 13 Federal National Mortgage Association 93,563 97,057 105,459 116,064 117,964 118,356 119,248 118,826 119,775 14 Farm Credit Banks8 62,478 55,275 53,127 54,864 53,451 53,175 54,015 54,382 56,788 15 Student Loan Marketing Association 12,171 16,503 22,073 28,705 32,392 32,218 32,605 33,376 n.a. 16 Financing Corporation10 0 1,200 5,850 8,170 8,170 8,170 8,170 8,170 n.a. 17 Farm Credit Financial Assistance Corporation11 0 0 690 847 1,172 1,172 1,172 1,261 n.a. 18 Resolution Funding Corporation 0 0 0 4,522 13,026 18,052 18,052 18,052 23,055 MEMO 19 Federal Financing Bank debt13 157,510 152,417 142,850 134,873 157,685 162,443 166,017 173,318 180,538 Lending to federal and federally sponsored agencies 20 Export-Import Bank 14,205 11,972 11,027 10,979 11,144 1111,,114444 1111,,114444 1111,,334400 1111,,334400 21 Postal Service 2,854 5,853 5,892 6,195 5,898 5,898 6,698 6,698 6,698 22 Student Loan Marketing Association 4,970 4,940 4,910 4,880 4,880 4,880 4,880 4,880 4,880 23 Tennessee Valley Authority 15,797 16,709 16,955 16,519 14,936 15,012 14,522 14,382r 14,622 24 United States Railway Association6 85 0 0 0 0 0 0 0 0 Other Lending14 25 Farmers Home Administration 65,374 59,674 58,496 53,311 51,901 52,171 52,211 5522,,004499 5522,,332244 26 Rural Electrification Administration 21,680 21,191 19,246 19,265 19,168 19,066 19,043 19,042 18,966 27 Other 32,545 32,078 26,324 23,724 49,758 54,272 57,519 64,927r 71,708 1. Consists of mortgages assumed by the Defense Department between 1957 10. The Financing Corporation, established in August 1987 to recapitalize the and 1963 under family housing and homeowners assistance programs. Federal Savings and Loan Insurance Corporation, undertook its first borrowing in 2. Includes participation certificates reclassified as debt beginning Oct. 1,1976. October 1987. 3. OIF-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter. 11. The Farm Credit Financial Assistance Corporation (established in January 4. Consists of debentures issued in payment of Federal Housing Administration 1988 to provide assistance to the Farm Credit System) undertook its first insurance claims. Once issued, these securities may be sold privately on the borrowing in July 1988. securities market. 12. The Resolution Funding Corporation, established by the Financial Institu- 5. Certificates of participation issued before fiscal 1969 by the Government tions Reform, Recovery, and Enforcement Act of 1989, undertook its first National Mortgage Association acting as trustee for the Farmers Home Admin- borrowing in October 1989. istration; Department of Health, Education, and Welfare; Department of Housing 13. Includes FFB purchases of agency assets and guaranteed loans; the latter and Urban Development; Small Business Administration; and the Veterans contain loans guaranteed by numerous agencies with the guarantees of any Administration. particular agency being generally small. The Farmers Home Administration item 6. Off-budget. consists exclusively of agency assets, while the Rural Electrification Administra- 7. Includes outstanding noncontingent liabilities: notes, bonds, and deben- tion entry contains both agency assets and guaranteed loans. tures. Some data are estimated. 14. The FFB, which began operations in 1974, is authorized to purchase or sell 8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, obligations issued, sold, or guaranteed by other federal agencies. Since FFB shown in line 17. incurs debt solely for the purpose of lending to other agencies, its debt is not 9. Before late 1981, the Association obtained financing through the Federal included in the main portion of the table in order to avoid double counting. Financing Bank (FFB). Borrowing excludes that obtained from the FFB, which is shown on line 21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 DomesticN onfinancial Statistics • February 1991 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1990 TTyyppee ooff iissssuuee oorr iissssuueerr,, 11998877 11998888 11998899 oorr uussee Apr. May June July Aug. Sept. Oct. Nov. 1 All issues, new and refunding1 102,407 114,522 113,646 8,582 12,032 13,625 8,731 10,035 13,930 8,521 9,961 Type of issue 2 General obligation 30,589 30,312 35,774 3,386 3,166 4,426 2,847 3,358 3,763 3,435 3,024 3 Revenue 71,818 84,210 77,873 5,196 8,866 9,199 5,884 6,677 10,167 5,086 6,937 Type of issuer 4 State 10,102 8,830 11,819 1,387 1,003 1,090 1,442 1,610 2,317 1,470 1,337 5 Special district and statutory authority 65,460 74,409 71,022 4,366 7,485 8,556 5,670 6,692 8,188 4,521 5,879 6 Municipalities, counties, and townships 26,845 31,193 30,805 2,243 3,544 3,977 1,742 2,195 3,425 2,530 2,745 7 Issues for new capital, total 56,789 79,665 84,062 7,744 10,486 10,974 7,442 9,346 12,713 8,043 9,098 Use of proceeds 8 Education 9,524 15,021 15,133 1,054 1,694 2,612 2,212 1,389 1,472 1,614 1,009 9 Transportation 3,677 6,825 6,870 1,215 1,375 1,592 789 931 920 1,043 727 10 Utilities and conservation 7,912 8,496 11,427 991 1,232 2,159 719 1,015 687 731 1,301 11 Social welfare 11,106 19,027 16,703 2,664 2,628 2,199 2,012 3,508 3,995 1,343 1,992 12 Industrial aid 7,474 5,624 5,036 232 681 693 434 495 674 386 540 13 Other purposes 18,020 24,672 28,894 2,426 2,155 4,366 2,688 3,161 4,965 2,926 4,392 1. Par amounts of long-term issues based on date of sale. SOURCES. Investment Dealer's Digest beginning April 1990. Securities Data/ 2. Includes school districts beginning 1986. Bond Buyer Municipal Data Base beginning 1986. Public Securities Association for earlier data. 1.46 NEW SECURITY ISSUES U.S. Corporations Millions of dollars 1990 TTyyppee ooff iissssuuee oorr iissssuueerr,, 11998877 11998888 11998899 oorr uussee Mar. Apr. May June July Aug. Sept. Oct. 1 Ail issues1 392,261 410,713 376,171 21,199 15,346 25,204 28,900 19,975 13,750' 14,535' 19,262 2 Bonds2 325,753 352,912 318,300 17,405 13,590 22,853 26,027 17,728 12,942' 14,109' 18,300 Type of offering 3 Public, domestic 209,377 202,034 180,913 15,498 12,669 19,703 22,816 14,423 11,746' 12,20C 16,600 4 Private placement, domestic3 92,070 127,700 114,629 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5. Sold abroad 24,306 23,178 22,758 1,907 921 3,150 3,211 3,305 1,196 1,909' 1,700 Industry group 6 Manufacturing 60,657 70,575 76,345 3,396 3,612 2,580 3,812 1,838 861' 2,246' 2,804 7 Commercial and miscellaneous 49,773 62,089 49,307 263 683 1,171 2,999 1,728 223 117 446 8 Transportation 11,974 10,075 10,105 386 194 927 1,001 270 500 533 187 9 Public utility 22,991 19,528 17,059 317 435 1,004 2,561 703 835 1,000 831 10 Communication 7,340 5,952 8,503 704 500 326 411 137 35 268 242 11 Real estate and financial 173,018 184,692 156,983 12,340 8,167 16,845 15,243 13,052 10,488' 9,945' 13,790 12 Stocks2 66,508 57,802 57,870 3,794 1,756 2,351 2,873 2,247 808 426 962 Type 13 Preferred 10,123 6,544 6,194 1,028 193 665 310 350 145 100 550 14 Common 43,225 35,911 26,030 2,767 1,564 1,686 2,563 1,897 663 326' 412 15 Private placement 13,157 15,346 25,647 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Industry group 16 Manufacturing 13,880 7,608 9,308 521 253 86 265 348 125 0 60 17 Commercial and miscellaneous 12,888 8,449 7,446 552 666 706 748 507 251 172 194 18 Transportation 2,439 1,535 1,929 0 0 22 21 0 71 0 7 19 Public utility 4,322 1,898 3,090 533 219 471 0 173 139 39 297 20 Communication 1,458 515 1,904 0 0 380 29 0 0 0 0 21 Real estate and financial 31,521 37,798 34,028 2,188 619 686 1,799 862 218 215 400 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 1990 IItteemm 11998888 11998899 Mar. Apr. May June July Aug. Sept/ Oct. INVESTMENT COMPANIES1 1 Sales of own shares2 271,237 306,445 28,817 29,788 27,431 28,301 29,444 29,227 23,387 27,511 2 Redemptions of own shares3 267,451 272,165 23,777 27,306 23,337 23,340 22,933 24,837 21,053 23,112 3 Net sales 3,786 34,280 5,040 2,482 4,094 4,961 6,511 4,390 2,334 4,399 4 Assets4 472,297 553,871 549,638 542,061 574,302 582,190 586,526 554,722 535,787 538,283 5 Cash position5 45,090 44,780 50,454 55,213 52,741 49,861 48,944 51,103 51,128 51,832 6 Other 427,207 509,091 499,184 486,848 521,560 532,329 537,582 503,619 484,659 486,451 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. 1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1988 1989 1990 AAccccoouunntt 11998877 11998888 11998899 Q4 Ql Q2 Q3 Q4 Ql Q2 Q3' 1 Corporate profits with inventory valuation and capital consumption adjustment 308.3 337.6 311.6 349.6 327.3 321.4 306.7 290.9 296.8 306.6 300.7 2 Profits before tax 275.3 316.7 307.7 331.1 335.1 314.6 291.4 289.8 2%. 9 299.3 318.5 3 Profits tax liability 126.9 136.2 135.1 142.1 148.3 140.8 127.8 123.5 129.9 133.1 139.1 4 Profits after tax 148.4 180.5 172.6 189.1 186.7 173.8 163.6 166.3 167.1 166.1 179.4 5 Dividends 98.2 110.0 123.5 115.3 119.1 122.1 125.0 127.7 130.3 133.0 135.1 6 Undistributed profits 50.2 70.5 49.1 73.8 67.6 51.7 38.6 38.6 36.8 33.2 44.3 7 Inventory valuation -19.4 -27.0 -21.7 -22.5 -43.0 -23.1 -6.1 -14.5 -11.4 -.5 -19.8 8 Capital consumption adjustment 52.4 47.8 25.5 40.9 35.2 29.9 21.4 15.6 11.3 7.7 2.0 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. 1989 1990 1991 IInndduussttrryy 11998899 11999900 11999911 Q2 Q3 Q4 QL Q2 Q3 Q4 QL 1 Total nonfarm business 507.40 533.91 546.67 502.05 514.95 519.58 532.45 535.49 534.86 532.84 557.92 Manufacturing 2 Durable goods industries 82.56 83.70 83.01 82.44 83.60 83.41 86.35 84.34 82.67 81.42 82.79 3 Nondurable goods industries 101.24 108.60 110.57 98.47 102.40 108.47 105.02 110.82 111.81 106.74 108.28 Nonmanufacturing 4 Mining 9.21 9.81 9.38 9.24 9.24 9.38 9.58 9.84 9.98 9.84 10.24 Transportation 5 Railroad 6.26 6.30 6.62 5.81 6.36 6.80 6.45 6.66 5.60 6.48 6.22 6 Air 6.73 9.02 10.82 6.84 8.89 5.75 9.35 9.36 10.05 7.31 11.03 7 Other 5.85 6.14 6.35 5.78 5.78 5.69 6.33 5.84 5.76 6.63 6.51 Public utilities 8 Electric 44.81 43.99 45.72 46.37 44.44 44.66 43.37 42.62 43.63 46.34 47.33 9 Gas and other 21.47 22.97 22.16 21.72 20.75 21.15 22.34 21.65 23.85 24.05 24.43 10 Commercial and other2 229.28 243.39 252.04 225.39 233.50 234.25 243.66 244.37 241.51 244.02 261.08 ATrade 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. I. 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 • February 1991 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities1 Billions of dollars, end of period 1989 1990 AAccccoouunntt 11998855 11998866 11998877 Ql Q2 Q3 Q4 Ql Q2 Q3 ASSETS Accounts receivable, gross2 1 Consumer 111.9 134.7 141.1 139.1 143.9 146.3 140.8 137.9 138.6 140.9 2 Business 157.5 173.4 207.4 243.3 250.9 246.8 256.0 262.9 274.8 275.4 3 Real estate 28.0 32.6 39.5 45.1 47.1 48.7 48.9 52.1 55.4 57.7 4 Total 297.4 340.6 388.1 427.5 441.9 441.8 445.8 452.8 468.8 474.0 Less: 5 Reserves for unearned income 39.2 41.5 45.3 51.0 52.2 52.9 52.0 51.9 54.3 55.1 6 Reserves for losses 4.9 5.8 6.8 7.4 7.5 7.7 7.7 7.9 8.2 8.6 7 Accounts receivable, net 253.3 293.3 336.0 369.2 382.2 381.3 386.1 393.0 406.3 410.3 8 All other 45.3 58.6 58.3 75.1 81.4 85.2 91.6 92.5 95.5 102.8 9 Total assets 298.6 351.9 394.2 444.3 463.6 466.4 477.6 485.5 501.9 513.1 LIABILITIES 10 Bank loans 18.0 18.6 16.4 11.3 12.1 12.2 14.5 13.9 15.8 15.6 11 Commercial paper 99.2 117.8 128.4 147.8 149.0 147.2 149.5 152.9 152.4 148.6 12 Other short-term 12.7 17.5 28.0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 13 Long-term 94.4 117.5 137.1 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 14 Due to parent n.a. n.a. n.a. 56.9 59.8 60.3 63.8 70.5 72.8 82.0 15 Not elsewhere classified n.a. n.a. n.a. 133.6 140.5 145.1 147.8 145.7 153.0 156.6 16 All other liabilities 41.5 44.1 52.8 58.1 63.5 61.8 62.6 61.7 66.1 68.7 17 Capital, surplus, and undivided profits 32.8 36.4 31.5 36.6 38.8 39.8 39.4 40.7 41.8 41.6 18 Total liabilities and capital 298.6 351.9 394.2 444.3 463.6 466.4 477.6 485.5 501.9 513.1 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 1990 type May June July Aug. Sept. Oct. 1 Total 205,992 234,578 258,504 266,859 273,786 277,616 283,043 285,654 287,921 Retail financing of installment sales 2 Automotive 36,139 36,957 39,139 39,245 39,716 38,931 38,610 38,470 39,150 3 Equipment 25,075 28,199 29,674 30,635 30,491 30,623 30,707 30,607 30,487 4 Pools of securitized assets n.a. n.a. 698 622 642 800 987 946 902 Wholesale 5 Automotive 30,070 32,357 33,074 29,896 31,815 33,158 34,429 37,082 35,258 6 Equipment 5,578 5,954 6,8% 9,429 9,495 9,929 9,812 9,791 10,698 7 All other 8,329 9,312 9,918 9,892 10,043 9,722 9,707 9,597' 9,477 8 Pools of securitized assets2 n.a. n.a. 0 0 0 0 650 863 679 Leasing 9 Automotive 22,097 24,875 27,074 28,878 29,575 30,210 30,942 30,453 31,303 10 Equipment 43,493 57,658 68,112 72,715 74,916 76,316 78,714 79,158 80,833 11 Pools of securitized assets n.a. n.a. 11,,224477 11,,559977 11,,554477 11,,776600 11,,770033 11,,665555 11,,772244 12 Loans on commercial accounts receivable and factored commercial accounts receivable 18,170 18,103 19,081 18,700 19,869 20,077 19,974 20,538 20,740 13 All other business credit 17,042 21,162 23,590 25,250 25,677 26,089 26,809 26,495 26,670 Net change (during period) 14 33,866 22,434 22,580 4,480 6,927 3,830 5,427 2,611 2,267 Retail financing of installment sales 15 Automotive 9,925 819 2,182 -305 471 -785 -321 -141 680 16 Equipment 2,056 1,386 1,475 520 -144 132 84 -100 -120 17 Pools of securitized assets2 n.a. n.a. -26 -40 20 158 187 -41 -44 Wholesale 18 Automotive 7,158 2,288 716 224 1,919 1,343 1,271 2,653 -1,823 19 Equipment 250 377 940 57 67 434 -118 -21 907 20 All other 1,293 983 605 -69 151 -321 -16 -110 -120 21 Pools of securitized assets2 n.a. n.a. 0 0 0 0 650 213 -184 Leasing 2222 Automotive 2,174 2,777 2,201 351 696 636 731 -488 850 23 Equipment 5,271 9,752 9,187 3,243 2,201 1,400 2,398 444 1,675 24 Pools of securitized assets2 n.a. n.a. 526 -49 -50 213 -57 --4488 6699 25 Loans on commercial accounts receivable and factored commercial accounts receivable 2,245 -65 979 -16 1,169 208 -103 564 202 26 All other business credit 3,498 4,119 3,796 565 427 412 721 -314 175 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. 1990 IItteemm 11998877 11998888 11998899 May June July Aug. Sept. Oct. Nov. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes 1 Purchase price (thousands of dollars) 137.0 150.0 159.6 162.1 149.8 163.5 161.5 156.6 146.1 151.5 2 Amount of loan (thousands of dollars) 100.5 110.5 117.0 119.7 111.8 120.9 118.3 114.8 105.1 111.2 3 Loan/price ratio (percent) 75.2 75.5 74.5 75.0 76.4 75.3 74.5 74.7 73.5 75.0 4 Maturity (years) 27.8 28.0 28.1 28.1 26.9 28.0 27.2 27.2 26.9 27.1 5 Fees and charges (percent of loan amount) 2.26 2.19 2.06 2.41 1.96 1.93 2.07 1.78 1.80 1.68 6 Contract rate (percent per year) 8.94 8.81 9.76 9.87 9.80 9.75 9.75 9.60 9.68 9.61 Yield (percent per year) / OTS series3 9.31 9.18 10.11 10.28 10.13 10.08 10.11 9.90 9.98 9.90 8 HUD series4 10.17 10.30 10.21 10.19 10.12 9.94 10.12 10.18 10.11 9.86 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (HUD series) 10.16 10.49 10.24 10.23 10.18 10.11 10.28 10.24 10.23 9.81 10 GNMA securities6 9.44 9.83 9.71 9.77 9.54 9.48 9.63 9.65 9.66 9.46 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 95,030 101,329 104,974 112,791 112,855 113,378 113,507 113,718 114,216 115,085 12 FHA/VA-insured 21,660 19,762 19,640 20,723 20,830 21,059 21,101 21,364 21,495 21,530 13 Conventional 73,370 81,567 85,335 92,068 92,025 92,319 92,406 92,354 92,721 93,555 Mortgage transactions (during period) 14 Purchases 20,531 23,110 22,518 1,630 1,802 2,304 2,134 2,123 2,077 2,078 Mortgage commitments7 15 Issued (during period) n.a. n.a. n.a. 1,960 2,089 2,215 2,302 2,073 1,849 2,426 16 To sell (during period) n.a. n.a. n.a. 534 853 874 761 644 92 0 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of periodf 17 Total 12,802 15,105 20,105 19,874 19,979 20,127 20,564 20,508 n.a. n.a. 18 FHA/VA 686 620 590 556 550 546 541 536 n.a. n.a. 19 Conventional 12,116 14,485 19,516 19,319 19,429 19,581 20,023 17,810 n.a. n.a. Mortgage transactions (during period) 20 Purchases 76,845 44,077 78,588 6,064 5,856 4,527 5,417 5,798 n.a. n.a. 21 Sales 75,082 39,780 73,446 5,792 5,546 4,248 4,808 5,707 5,734'' 5,280 Mortgage commitments10 22 Contracted (during period) 71,467 66,026 88,519 8,502 11,183 5,851 5,646 6,643 n.a. n.a. 1. Weighted averages based on sample surveys of mortgages originated by ciation guaranteed, mortgage-backed, fully modified pass-through securities, major institutional lender groups; compiled by the Federal Home Loan Bank assuming prepayment in 12 years on pools of 30-year FHA/VA mortgages Board in cooperation with the Federal Deposit Insurance Corporation. carrying the prevailing ceiling rate. Monthly figures are averages of Friday figures 2. Includes all fees, commissions, discounts, and "points" paid (by the from the Wall Street Journal. borrower or the seller) to obtain a loan. 7. Includes some multifamily and nonprofit hospital loan commitments in 3. Average effective interest rates on loans closed, assuming prepayment at addition to 1- to 4-family loan commitments accepted in FNMA's free market the end of 10 years. auction system, and through the FNMA-GNMA tandem plans. 4. Average contract rates on new commitments for conventional first mort- 8. Does not include standby commitments issued, but includes standby gages; from Department of Housing and Urban Development. commitments converted. 5. Average gross yields on 30-year, minimum-downpayment, Federal Housing 9. Includes participation as well as whole loans. Administration-insured first mortgages for immediate delivery in the private 10. Includes conventional and government-underwritten loans. FHLMC's secondary market. Based on transactions on first day of subsequent month. Large mortgage commitments and mortgage transactions include activity under mortgage/ monthly movements in average yields may reflect market adjustments to changes securities swap programs, while the corresponding data for FNMA exclude swap in maximum permissable contract rates. activity. 6. Average net yields to investors on Government National Mortgage Asso- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Nonfinancial Statistics • February 1991 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1989 1990 TTyyppee ooff hhoollddeerr,, aanndd ttyyppee ooff pprrooppeerrttyy 11998877 11998888 11998899 Q2 Q3 Q4 Q1 Q2 1 All holders 2,971,019 3,264,348 3,540,084 3,402,082 3,473,550 3,540,084 3,601,132 3,657,741 2 1- to 4-family 1,958,400 2,186,292 2,404,311 2,287,645 2,347,566 2,404,311 2,450,291 2,492,784 3 Multifamily 272,500 289,128 305,582 299,449 302,374 305,582 310,273 314,360 4 Commercial 651,323 702,113 744,856 728,212 737,299 744,856 755,857 765,489 5 88,797 86,816 85,336 86,777 86,311 85,336 84,710 85,109 6 Selected financial institutions 1,657,937 1,826,668 1,919,243 1,891,210 1,913,914 1,919,243 1,924,635 1,924,617 7 Commercial banks2 592,449 669,237 763,533 715,262 742,0% 763,533 783,100 803,660 8 1- to 4-family 275,613 317,585 368,567 338,799 355,084 368,567 376,616 388,018 9 Multifamily 32,756 33,158 37,990 36,022 37,201 37,990 39,202 40,271 10 Commercial 269,648 302,989 340,285 324,083 333,272 340,285 350,473 358,367 11 Farm 14,432 15,505 16,691 16,358 16,539 16,691 16,809 17,003 12 Savings institutions3 860,467 924,606 910,254 938,714 932,373 910,254 892,022 867,640 13 1- to 4-family 602,408 671,722 669,220 687,000 683,148 669,220 658,440 639,985 14 Multifamily 106,359 110,775 106,014 110,067 108,447 106,014 103,860 101,112 IS Commercial 150,943 141,433 134,370 140,977 140,0% 134,370 129,103 125,944 16 Farm 757 676 650 670 682 650 619 599 17 Life insurance companies 205,021 232,825 245,456 237,234 239,445 245,456 249,513 253,317 18 1- to 4-family 12,676 15,299 13,827 12,814 13,290 13,827 14,173 14,479 19 Multifamily 21,644 23,583 27,195 25,232 26,372 27,195 28,182 29,155 20 Commercial 160,874 184,273 194,871 189,623 190,152 194,871 197,621 200,139 21 Farm 9,828 9,671 9,563 9,565 9,632 9,563 9,537 9,544 22 Finance companies4 29,716 37,846 45,476 41,824 43,157 45,476 45,808 47,104 23 Federal and related agencies 192,721 200,570 209,472 202,056 205,809 209,472 216,059 230,511 24 Government National Mortgage Association 444 26 23 24 24 23 22 21 25 1- to 4-family 25 26 23 24 24 23 22 21 26 Multifamily 419 0 0 0 0 0 0 0 27 Farmers Home Administration 43,051 42,018 41,176 40,711 41,117 41,176 41,125 41,027 28 1- to 4-family 18,169 18,347 18,422 18,391 18,405 18,422 18,419 18,433 29 Multifamily 8,044 8,513 9,054 8,778 8,916 9,054 9,199 9,351 30 Commercial 6,603 5,343 4,443 3,885 4,366 4,443 4,510 4,418 31 Farm 10,235 9,815 9,257 9,657 9,430 9,257 8,997 8,826 32 Federal Housing and Veterans Administration 5,574 5,973 6,087 6,424 6,023 6,087 6,355 6,792 33 1- to 4-family 2,557 2,672 2,850 2,827 2,900 2,850 2,977 3,041 34 Multifamily 3,017 3,301 3,237 3,597 3,123 3,211 3,291 3,243 35 Federal National Mortgage Association 96,649 103,013 110,721 103,309 107,052 110,721 112,353 114,592 36 1- to 4-family 89,666 95,833 102,295 95,714 99,168 102,295 103,300 105,026 37 Multifamily 6,983 7,180 8,426 7,595 7,884 8,426 9,053 9,566 38 Federal Land Banks 34,131 32,115 29,640 31,467 30,943 29,640 29,325 30,517 39 1- to 4-family 2,008 1,890 1,210 1,851 1,821 1,210 1,197 1,957 40 Farm 32,123 30,225 28,430 29,616 29,122 28,430 28,128 28,559 41 Federal Home Loan Mortgage Corporation 12,872 17,425 21,851 20,121 20,650 21,851 19,823 20,126 42 1- to 4-family 11,430 15,077 18,248 17,382 17,659 18,248 16,772 16,918 43 Multifamily 1,442 2,348 3,603 2,739 2,992 3,603 3,051 3,208 44 Mortgage pools or trusts6 718,297 810,887 943,932 864,885 899,435 943,932 981,265 1,011,982 45 Government National Mortgage Association 317,555 340,527 369,867 353,759 361,291 369,867 378,292 384,289 46 1- to 4-family 309,806 331,257 358,142 342,545 349,838 358,142 366,300 372,051 47 Multifamily 7,749 9,270 11,725 11,214 11,453 11,725 11,992 12,237 48 Federal Home Loan Mortgage Corporation 212,634 226,406 272,870 245,242 257,938 272,870 281,736 291,863 49 1- to 4-family 205,977 219,988 266,060 238,446 251,232 266,060 274,084 283,822 50 Multifamily 6,657 6,418 6,810 6,796 6,706 6,810 7,652 8,041 51 Federal National Mortgage Association 139,960 178,250 228,232 196,501 208,894 228,232 246,391 259,664 52 1- to 4-family 137,988 172,331 219,577 188,774 200,302 219,577 237,916 250,663 53 Multifamily 1,972 5,919 8,655 7,727 8,592 8,655 8,475 9,002 54 Farmers Home Administration5 245 104 80 85 82 80 75 71 55 1- to 4-family 121 26 21 23 22 21 20 18 56 Multifamily 0 0 0 0 0 0 0 0 57 Commercial 63 38 26 26 26 26 25 23 58 Farm 61 40 33 36 35 33 31 30 59 Individuals and others7 402,064 426,223 467,438 443,931 454,392 467,438 479,172 490,631 60 1- to 4-family 242,053 258,639 292,967 273,757 283,445 292,%7 301,573 310,747 61 Multifamily 75,458 78,663 82,899 79,681 80,689 82,899 84,873 86,468 62 Commercial 63,192 68,037 70,861 69,618 69,387 70,861 72,136 72,868 63 Farm 21,361 20,884 20,711 20,875 20,871 20,711 20,589 20,548 1. Based on data from various institutional and governmental sources, with 5. Farmers Home Administration-guaranteed securities sold to the Federal some quarters estimated in part by the Federal Reserve. Multifamily debt refers Financing Bank were reallocated from FmHA mortgage pools to FmHA mortgage to loans on structures of five or more units. holdings in 1986:4, because of accounting changes by the Farmers Home 2. Includes loans held by nondeposit trust companies but not bank trust Administration. departments. 6. Outstanding principal balances of mortgage pools backing securities insured 3. Includes savings banks and savings and loan associations. Beginning 1987:1, or guaranteed by the agency indicated. Includes private pools which are not data reported by FSLIC-insured institutions include loans in process and other shown as a separate line item. contra assets (credit balance accounts that must be subtracted from the corre- 7. Other holders include mortgage companies, real estate investment trusts, sponding gross asset categories to yield net asset levels). state and local credit agencies, state and local retirement funds, noninsured 4. Assumed to be entirely 1- to 4-family loans. pension funds, credit unions, and other U.S. agencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Consumer Installment Credit A39 1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change, seasonally adjusted Millions of dollars, amounts outstanding, end of period 1990 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 11998888 11998899 Feb. Mar. Apr. May June July Aug. Sept/ Oct. Seasonally adjusted 11 TToottaall 664,701 716,624 717,869 720,445 720,835 724,485 724,601 729,329 732,385 735,222 736,687 22 AAuuttoommoobbiillee 284,556 290,770 289,629 290,932 288,936 288,931 287,168 286,791 285,283 285,261 284,477 33 RReevvoollvviinngg 174,057 197,110 199,927 202,263 203,965 207,153 208,362 212,138 214,492 216,804 218,362 44 MMoobbiillee hhoommee 25,201 22,343 22,633 22,708 22,702 22,815 22,733 22,795 22,976 22,672 22,484 55 OOtthheerr 180,887 206,401 205,680 204,543 205,232 205,585 206,338 207,605 209,635 210,484 211,364 Not seasonally adjusted 6 Total 674,719 727,561 717,062 713,138 715,801 720,045 722,953 727,196 734,511 737,260 737,345 By major holder 7 Commercial banks 324,792 343,865 339,418 334,645 337,576 339,328 335,998 339,124 342,987 344,941 344,887 8 Finance companies 146,212 140,832 139,115 137,857 138,174 138,384 138,642 138,796 139,496 140,890 141,329 9 Credit unions 88,340 90,875 90,127 89,556 89,689 89,913 90,137 90,631 91,306 91,311 91,488 10 Retailers2 48,302 42,638 37,904 37,302 37,207 37,347 37,382 36,804 37,231 36,682 36,047 11 Savings institutions 63,399 57,228 54,771 54,095 53,606 53,301 52,902 52,503 52,399 51,358 50,787 12 Gasoline companies 3,674 3,935 3,803 3,792 3,928 4,024 4,192 4,396 4,722 4,723 4,718 13 Pools of securitized assets .. n.a. 48,188 51,924 55,891 55,621 57,748 63,700 64,942 66,370 67,355 68,089 By major type of credit3 14 Automobile 284,328 290,421 288,036 286,539 286,220 287,140 287,254 287,479r 288,221 289,255 287,805 15 Commercial banks 123,392 126,613 127,149 126,289 126,483 127,056 126,988 126,986 128,079 128,937 128,167 16 Finance companies 97,245 82,721 80,227 79,523 79,295 78,927 78,273 77,716 77,205 78,116 78,033 17 Pools of securitized assets2 n.a. 18,191 18,931 19,563 19,406 20,151 21,043 21,692 21,562 21,239 20,785 18 Revolving 183,909 208,188 200,147 199,937 201,783 204,854 206,820 209,582 213,119 214,853 216,266 19 Commercial banks 123,020 130,956 124,821 122,024 124,039 125,433 122,116 124,569 125,967 126,995 127,927 20 Retailers 43,697 37,967 33,378 32,794 32,721 32,857 32,884 32,325 32,735 32,212 31,601 21 Gasoline companies 3,674 3,935 3,803 3,792 3,928 4,024 4,192 4,396 4,722 4,723 4,718 22 Pools of securitized assets2 n.a. 22,977 26,204 29,542 29,403 30,913 36,076 36,786 38,194 39,606 40,798 23 Mobile home 25,143 22,283 22,726 22,426 22,484 22,610 22,644 22,873r 23,033 22,815 22,713 24 Commercial banks 9,025 9,155 9,162 9,142 9,231 9,295 9,296 9,443 9,541 9,396 9,356 25 Finance companies 7,191 4,716 5,410 5,178 5,168 5,224 5,266 5,328 5,358 5,423 5,400 26 Other 181,339 206,669 206,153 204,236 205,314 205,441 206,235 207,252' 210,138 210,337 210,561 27 Commercial banks 69,355 77,141 78,286 77,190 77,823 77,544 77,598 78,126 79,400 79,613 79,437 28 Finance companies 41,776 53,395 53,478 53,156 53,711 54,233 55,103 55,752 56,933 57,351 57,896 29 Retailers 4,605 4,671 4,526 4,508 4,486 4,490 4,498 4,479 4,496 4,470 4,446 30 Pools of securitized assets2 n.a. 7,020 6,789 6,786 6,812 6,684 6,581 6,464 6,614 6,510 6,506 1. The Board's series cover most short- and intermediate-term credit extended 2. Outstanding balances of pools upon which securities have been issued; these to individuals that is scheduled to be repaid (or has the option of repayment) in balances are no longer carried on the balance sheets of the loan originator. two or more installments. 3. Totals include estimates for certain holders for which only consumer credit These data also appear in the Board's G.19 (421) release. For address, see totals are available. inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • February 1991 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1 Percent unless noted otherwise 1990 IItteemm 11998877 11998888 11998899 Apr. May June July Aug. Sept. Oct. INTEREST RATES Commercial banks2 1 48-month new car 10.45 10.85 12.07 n.a. 11.82 n.a. n.a. 11.89 n.a. n.a. 2 24-month personal 14.22 14.68 15.44 n.a. 15.41 n.a. n.a. 15.46 n.a. n.a. 3 120-month mobile home3 13.38 13.54 14.11 n.a. 14.09 n.a. n.a. 14.09 n.a. n.a. 4 Credit card 17.92 17.78 18.02 n.a. 18.14 n.a. n.a. 18.18 n.a. n.a. Auto finance companies 5 New car 10.73 12.60 12.62 12.21 12.23 12.58 12.68 12.62 12.34 12.57 6 Used car 14.60 15.11 16.18 16.02 16.03 16.00 15.96 15.98 16.03 16.12 OTHER TERMS4 Maturity (months) 7 New car 53.5 56.2 54.2 54.2 54.5 54.8 54.9 54.8 54.3 54.6 8 Used car 45.2 46.7 46.6 46.5 46.1 46.2 46.2 46.2 46.1 46.1 Loan-to-value ratio 9 New car 93 94 91 87 87 87 86 86 85 85 10 Used car 98 98 97 96 96 95 96 96 95 95 Amount financed (dollars) 11 New car 11,203 11,663 12,001 12,089 12,064 12,108 12,125 11,939 11,837 11,917 12 Used car 7,420 7,824 7,954 8,105 8,169 8,296 8,401 8,415 8,403 8,423 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. 1989 1990 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11998855 11998866 11998877 11998888 11998899 QI Q2 Q3 Q4 Qr Q2' Q3 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors.. 848.1 836.9 687.0 760.8 678.2' 746.9r 666.8' 678.8' 620.2' 762.1 624.6 708.6 By sector and instrument 7 U.S. government 223.6 215.0 144.9 157.5 151.6r 147.3 100.1 mmssrr 185.0 247.6 228.7 228866..77 3 Treasury securities 223.7 214.7 143.4 140.0 150.0 148.5 95.0 166.8 189.6 218.1 223.4 288.0 4 Agency issues and mortgages -.1 .4 1.5 17.4 1.6' -1.2 5.1 7.1' -4.6 29.6 5.4 -1.3 5 Private domestic nonfinancial sectors 624.5 621.9 542.1 603.3 526.6' 599.6' 566.7' 504.9 435.2' 514.5 395.8 422.0 6 Debt capital instruments 451.2 465.8 453.2 459.2 379.8' 412.8 390.1 369.2 347.0' 366.2 331.4 294.0 7 Tax-exempt obligations 135.4 22.7 49.3 49.8 30.4 39.7 28.7 34.1 19.1 13.0 21.9 25.9 8 Corporate bonds 73.5 126.8 79.4 102.9 73.7' 58.2 86.5 62.7 87.4' 44.6 66.9 38.1 9 Mortgages 242.2 316.3 324.5 306.5 275.7 314.9 275.0 272.4 240.5 308.6 242.7 230.0 10 Home mortgages 156.8 218.7 234.9 231.0 218.0 225.5 211.3 221.0 214.3 237.3 225.4 207.9 11 Multifamily residential 29.8 33.5 24.4 16.7 16.4 23.1 21.4 11.8 9.5 21.9 -4.3 .0 1? Commercial 62.2 73.6 71.6 60.8 42.7 68.6 41.5 40.9 19.9 50.7 24.6 23.0 13 Farm -6.6 -9.5 -6.4 -2.1 -1.5 -2.3 .9 -1.3 -3.2 -1.4 -3.0 -.9 14 Other debt instruments 173.3 156.1 88.9 144.1 146.8' 186.8' 176.5' 135.6' 88.2' 148.3 64.4 128.0 15 Consumer credit 82.5 58.0 33.5 50.2 39.1 38.2 36.9 37.1 44.1 14.6 9.8 27.7 16 Bank loans n.e.c 40.6 66.9 10.0 39.8 39.9 55.9 45.1 50.8 7.7 19.6 6.5 10.5 17 Open market paper 14.6 -9.3 2.3 11.9 20.4 32.3 39.5 16.9 -6.9 69.7 -6.0 17.5 18 Other 35.6 40.5 43.2 42.2 47.4' 60.4' 55.(y 30.9 43.3' 44.4 54.1 72.2 19 By borrowing sector 624.5 621.9 542.1 603.3 526.6r 599.6' 566.7' 504.9 435.2' 514.5 395.8 422.0 70 State and local governments 90.9 36.2 48.8 45.6 29.6 40.1 33.3 28.6 16.5 9.0 14.9 20.5 71 Households 284.5 293.0 302.2 314.9 285.0' 293.4' 264.0' 290.8 291.8' 300.0 270.2 283.4 ?? Nonfinancial business 249.1 292.7 191.0 242.8 211.9 266.1' 269.4 185.4 126.9^ 205.4 110.7 118.1 ?3 -14.5 -16.3 -10.6 -7.5 1.6 4.7 -5.0 -2.1 8.9 4.3 -6.1 3.9 74 Nonfarm noncorporate 129.3 99.2 77.9 65.7 50.8 71.0 56.9 40.2 35.0 38.4 25.5 24.3 25 Corporate 134.3 209.7 123.7 184.6 159.5 190.3 217.4 147.3 83.1' 162.8 91.3 89.9 26 Foreign net borrowing in United States 1.2 9.7 4.5 6.3 10.9 3.2 -6.9 30.4 16.9 -3.5 41.1 26.3 77 3.8 3.1 7.4 6.9 5.3 2.5 11.5 8.1 -1.0 28.3 27.0 1.6 78 Bank loans n.e.c -2.8 -1.0 -3.6 -1.8 -.1 3.2 -3.2 3.7 -4.3 -6.7 -2.1 2.7 79 Open market paper 6.2 11.5 2.1 8.7 13.3 16.9 -6.6 20.7 22.2 -16.5 23.0 27.3 30 U.S. government loans -6.0 -3.9 -1.4 -7.5 -7.5 -19.4 -8.7 -2.1 .1 -8.6 -6.9 -5.3 31 Total domestic plus foreign 849.3 846.6 691.5 767.1 689. r 750.1' 659.9' 709.2' 637.1' 758.6 665.7 734.9 Financial sectors 32 Total net borrowing by financial sectors ... 201.3 285.1 300.2 247.6 205.5 356.6 154.1 123.9 187.3 198.5 172.5 214.3 By instrument 33 U.S. government related 101.5 154.1 171.8 119.8 151.0 194.0 128.8 124.8 156.4 176.2 183.7 167.4 34 Sponsored credit agency securities 20.6 15.2 30.2 44.9 25.2 70.0 22.5 13.2 -4.7 14.5 17.3 17.9 35 Mortgage pool securities 79.9 139.2 142.3 74.9 125.8 124.0 106.3 111.6 161.1 161.7 166.4 149.4 36 Loans from U.S. government 1.1 -.4 -.8 .0 .0 .0 .0 .0 .0 .0 .0 .0 37 Private financial sectors 99.7 131.0 128.4 127.8 54.5 162.6 25.3 -.9 30.9 22.3 -11.2 46.9 38 Corporate bonds 50.9 82.9 78.9 51.7 36.8 52.3 28.5 26.7 39.6 37.7 64.1 39.5 39 Mortgages .1 .1 .4 .3 .0 .3 .0 .3 -.4 -.7 .8 -1.4 40 Bank loans n.e.c 2.6 4.0 -3.2 1.4 1.8 1.0 -.1 2.0 4.2 -2.2 -.7 1.7 41 Open market paper 32.0 24.2 27.9 54.8 26.9 50.1 10.1 11.0 36.3 9.4 -44.7 37.3 42 Loans from Federal Home Loan Banks 14.2 19.8 24.4 19.7 -11.0 58.9 -13.1 -41.0 -48.8 -21.8 -30.7 -30.3 By sector 43 Total 201.3 285.1 300.2 247.6 205.5 356.6 154.1 123.9 187.3 198.5 172.5 214.3 44 Sponsored credit agencies 21.7 14.9 29.5 44.9 25.2 70.0 22.5 13.2 -4.7 14.5 17.3 17.9 45 Mortgage pools 79.9 139.2 142.3 74.9 125.8 124.0 106.3 111.6 161.1 161.7 166.4 149.4 46 Private financial sectors 99.7 131.0 128.4 127.8 54.5 162.6 25.3 -.9 30.9 22.3 -11.2 46.9 47 Commercial banks -4.9 -3.6 6.2 -3.0 -1.4 -11.1 2.5 3.5 -.7 -4.9 -7.9 -14.4 48 Bank affiliates 16.6 15.2 14.3 5.2 6.2 9.4 2.9 16.5 -3.9 -12.8 -32.6 -22.7 49 Savings and loan associations 17.3 20.9 19.6 19.9 -14.1 60.8 -16.3 -44.7 -56.2 -15.8 -52.7 -38.0 50 Mutual savings banks 1.5 4.2 8.1 1.9 -1.4 -4.1 .0 -2.3 .7 -8.3 5.9 1.2 51 Finance companies 57.7 54.7 40.8 67.7 46.3 68.8 40.4 23.5 52.6 29.8 27.8 87.1 52 REITs -.1 .8 .3 3.5 -1.9 -1.8 -2.8 -3.1 .1 -.5 -2.0 -1.5 53 SCO Issuers 11.5 39.0 39.1 32.5 20.8 40.6 -1.4 5.7 38.2 34.7 50.3 35.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 DomesticN onfinancial Statistics • February 1991 1.57—Continued 1989 1990 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11998855 11998866 11998877 11998888 11998899 Ql Q2 Q3 Q4 Qlr Q2' Q3 All sectors 54 Total net borrowing 1,050.6 1,131.7 991.7 1,014.7 894.5' 1,106.7' 814.0' 833.0' 824.4' 957.1 838.2 949.2 55 U.S. government securities 324.2 369.5 317.5 277.2 302.6' 341.3 228.9 298.7' 341.4 423.8 412.5 454.0 56 State and local obligations 135.4 22.7 49.3 49.8 30.4 39.7 28.7 34.1 19.1 13.0 21.9 25.9 57 Corporate and foreign bonds 128.2 212.8 165.7 161.5 115.8' 113.0 126.5 97.6 125.9' 110.5 158.0 79.2 58 Mortgages 242.2 316.4 324.9 306.7 275.7 315.2 275.0 272.7 240.1 307.9 243.5 228.7 59 Consumer credit 82.5 58.0 33.5 50.2 39.1 38.2 36.9 37.1 44.1 14.6 9.8 27.7 60 Bank loans n.e.c 40.3 69.9 3.2 39.4 41.5 60.2 41.9 56.5 7.5 10.6 3.7 15.0 61 Open market paper 52.8 26.4 32.3 75.4 60.6 99.3 42.9 48.5 51.6 62.7 -27.7 82.1 62 Other loans 45.0 56.1 65.5 54.4 28^ 99.9r 33.2' -12.2 -5.4' 14.0 16.5 36.6 63 MEMO: U.S. government, cash balance 14.4 .0 -7.9 10.4 -5.9 -14.3 20.7 -22.7 -7.3 21.5 -40.5 18.8 Totals net of changes in U.S. government cash balances 64 Net borrowing by domestic nonfinancial 833.7 836.9 694.9 750.4 684.1' 761.2' 646.1' 701.6' 627.6' 740.6 665.1 689.8 65 Net borrowing by U.S. government 209.3 215.0 152.8 147.1 157.5' 161.6 79.4 196.7' 192.4 226.2 269.2 267.9 External corporate equity funds raised in United States 66 Total net share issues 17.2 86.8 10.9 -124.2 -63.7' -165.8' -43.0' -61.0' -4.8 50.5 -11.9 67 Mutual funds 84.4 159.0 73.9 1.1 41.3 1.0 34.0 57.9 72.4 53.1 76.5 51.7 68 All other -67.2 -72.2 -63.0 -125.3 -105.1' -166.8' -77.C —I I8.Y -57.6' -57.9 -26.0 -63.7 69 Nonfinancial corporations -84.5 -85.0 -75.5 -129.5 -124.2 -172.3 -98.7 -146.3 -79.3 -69.0 -48.0 -74.0 10 Financial corporations 13.6 11.6 14.6 3.3 2.4' 1.0' 4.3' -.1' 4.5' 9.9 .3 8.4 71 Foreign shares purchased in United States 3.7 1.2 -2.1 .9 16.7 4.5 17.4 27.5 17.2 1.2 21.7 2.0 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. 1989 1990 Transaction category, or sector 11998855 11998866 11998877 11998888 11998899rr Ql Q2' Q3' Q4' Ql' Q2' Q3 1 Total funds advanced in credit markets to domestic nonfinancial sectors 848.1 836.9 687.0 760.8 678.2 746.9' 666.8 678.8 620.2 762.1 624.6 708.6 By public agencies and foreign 2 Total net advances 202.0 280.2 248.8 210.7 187.6 312.8 15.5 218.3 203.8 233.7 313.3 283.0 3 U.S. government securities 45.9 69.4 70.1 85.2 30.7 83.1 -103.3 115.7 27.1 16.9 93.5 97.3 4 Residential mortgages 94.6 136.3 139.1 86.3 137.9 126.0 119.7 127.7 178.3 182.1 210.6 181.7 5 FHLB advances to thrifts 14.2 19.8 24.4 19.7 -11.0 58.9 -13.1 -41.0 -48.8 -21.8 -30.7 -30.3 6 Other loans and securities 47.3 54.7 15.1 19.4 30.0 44.8 12.1 15.8 47.1 56.5 39.8 34.2 Total advanced, by sector 7 U.S. government 17.8 9.7 -7.9 -9.4 -2.4 -.2 -6.0 -9.3 5.7 33.6 42.7 30.9 8 Sponsored credit agencies 103.5 153.3 169.3 112.0 125.3 188.2 28.0 126.4 158.4 184.0 165.8 150.5 9 Monetary authorities 18.4 19.4 24.7 10.5 -7.3 8.1 -1.6 -31.2 -4.6 -6.7 39.7 23.7 10 Foreign 62.3 97.8 62.7 97.6 72.1 116.7 -4.9 132.4 44.2 22.8 65.0 77.9 Agency and foreign borrowing not in line 1 11 Sponsored credit agencies and mortgage pools.. 101.5 154.1 171.8 119.8 151.0 194.0 128.8 124.8 156.4 176.2 183.7 167.4 12 Foreign 1.2 9.7 4.5 6.3 10.9 3.2 -6.9 30.4 16.9 -3.5 41.1 26.3 Private domestic funds advanced 13 Total net advances 748.8 720.5 614.5 676.2 652.5 631.3' 773.3 615.7 589.7 701.1 536.1 619.3 14 U.S. government securities 278.2 300.1 247.4 192.1 271.9 258.2 332.2 183.0 314.3 406.9 318.9 356.7 15 State and local obligations 135.4 22.7 49.3 49.8 30.4 39.7 28.7 34.1 19.1 13.0 21.9 25.9 16 Corporate and foreign bonds 40.6 89.7 66.9 91.3 66.1 36.8 91.1 65.6 70.6 56.8 71.4 35.5 17 Residential mortgages 91.8 115.9 120.2 161.3 96.5 122.6 113.0 105.1 45.5 77.2 10.5 26.2 18 Other mortgages and loans 216.9 212.0 155.2 201.4 176.6 232.9' 195.2 186.9 91.5 125.4 82.7 144.7 19 LESS: Federal Home Loan Bank advances 14.2 19.8 24.4 19.7 -11.0 58.9 -13.1 -41.0 -48.8 -21.8 -30.7 -30.3 Private financial intermediation 20 Credit market funds advanced by private financial institutions 578.0 730.0 528.4 562.3 511.1 474.1' 600.9 345.9 623.4 326.9 241.7 418.6 21 Commercial banking 188.4 198.1 135.4 156.3 177.3 180.4 160.9 183.7 184.3 187.9 125.8 106.3 22 Savings institutions 87.9 107.6 136.8 120.4 -90.9 16.5' -42.3 -135.8 -201.9 -56.4 -215.8 -158.9 23 Insurance and pension funds 150.1 160.1 179.7 198.7 177.9 182.1' 188.1 136.1 205.1 138.0 201.9 176.8 24 Other finance 151.6 264.2 76.6 86.9 246.8 95.1 294.2 161.9 436.0 57.3 129.8 294.4 25 Sources of funds 578.0 730.0 528.4 562.3 511.1 474.1' 600.9 345.9 623.4 326.9 241.7 418.6 26 Private domestic deposits and RPs 212.1 277.1 162.8 229.2 225.2 140.9' 267.4 284.4 208.0 117.0 18.3 78.4 27 Credit market borrowing 99.7 131.0 128.4 127.8 54.5 162.6 25.3 -.9 30.9 22.3 -11.2 46.9 28 Other sources 266.1 321.8 237.1 205.3 231.4 170.6' 308.2 62.3 384.6 187.6 234.6 293.3 29 Foreign funds 19.7 12.9 43.7 9.3 -9.9 -14.1' -35.4 30.4 -20.6 45.3 11.6 125.6 30 Treasury balances 10.3 1.7 -5.8 7.3 -3.4 -12.6 13.9 -19.9 5.0 11.9 -15.4 16.2 31 Insurance and pension reserves 131.7 119.9 135.4 177.6 140.5 162.3' 123.2 82.6 193.9 120.3 179.5 142.0 32 Other, net 104.4 187.3 63.9 11.0 104.2 35.1' 206.4 -30.8 206.3 10.0 58.9 9.5 Private domestic nonfinancial investors 33 Direct lending in credit markets 270.5 121.5 214.6 241.7 195.9 319.7' 197.7 268.9 -2.8 396.5 283.3 247.6 34 U.S. government securities 157.8 27.0 86.0 129.0 134.3 199.8' 136.2 196.8 4.3 281.2 185.7 244.2 35 State and local obligations 37.7 -19.9 61.8 53.5 28.4 56.7 5.1 39.0 12.8 .9 9.2 12.2 36 Corporate and foreign bonds 3.8 52.9 23.3 -9.4 .7 -16.5' 9.4 -4.7 14.6 28.4 14.1 -19.1 37 Open market paper 51.6 9.9 15.8 36.4 5.4 47.3' 17.8 21.4 -64.6 43.3 43.2 -29.8 38 Other 19.6 51.7 27.6 32.2 27.1 32.5' 29.2 16.4 30.1 42.7 31.1 40.1 39 Deposits and currency 222.8 297.5 179.3 232.8 241.3 182.2' 290.6 261.8 230.6 141.6 41.2 117.3 40 Currency 12.4 14.4 19.0 14.7 11.7 17.8 12.8 6.0 10.1 25.9 22.9 32.0 41 Checkable deposits 41.4 96.4 -.9 12.9 1.5 -33.<r -41.7 14.7 65.8 -10.9 -4.1 13.1 42 Small time and savings accounts 138.5 120.6 76.0 122.4 100.5 30.7' 99.0 163.1 109.1 112.0 9.4 38.3 43 Money market fund shares 7.2 43.2 28.9 20.2 85.2 39.4 119.2 116.7 65.6 72.8 5.8 120.9 44 Large time deposits 7.4 -3.2 37.2 40.8 23.1 68.5 61.1 -23.8 -13.4 -22.2 -7.4 -78.2 45 Security RPs 17.7 20.2 21.6 32.9 14.9 35.4' 29.8 13.7 -19.2 -34.8 14.6 -15.7 46 Deposits in foreign countries -1.7 5.9 -2.5 -11.2 4.4 23.5 10.4 -28.6 12.4 -1.3 .0 7.0 47 Total of credit market instruments, deposits, and currency 493.3 419.0 393.9 474.5 437.2 502.0' 488.3 530.7 227.7 538.1 324.4 364.9 48 Public holdings as percent of total 23.8 33.1 36.0 27.5 27.2 41.7 2.3 30.8 32.0 30.8 47.1 38.5 49 Private financial intermediation (in percent) 77.2 101.3 86.0 83.2 78.3 75.1' 77.7 56.2 105.7 46.6 45.1 67.6 50 Total foreign funds 82.0 110.7 106.4 106.9 62.2 102.6' -40.3 162.8 23.6 68.1 76.6 203.5 MEMO: Corporate equities not included above 51 Total net issues 17.2 86.8 10.9 -124.2 -63.7 -165.8' -43.0 -61.0 14.9 -4.8 50.5 -11.9 52 Mutual fund shares 84.4 159.0 73.9 1.1 41.3 1.0 34.0 57.9 72.4 53.1 76.5 51.7 53 Other equities -67.2 -72.2 -63.0 -125.3 -105.1 -166.8' -77.0 -118.9 -57.6 -57.9 -26.0 -63.7 54 Acquisitions by financial institutions 46.9 50.9 32.0 -2.9 17.2 -.2 -14.1 6.1 76.9 63.4 114.7 41.8 55 Other net purchases -29.7 35.9 -21.2 -121.4 -80.9 -165.6' -28.9 -67.1 -62.1 -68.2 -64.2 -53.7 NOTES BY LINE NUMBER. 31. Excludes net investment of these reserves in corporate equities. 1. Line 1 of table 1.57. 32. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 7-10. 33. Line 13 less line 20 plus line 27. 6. Includes farm and commercial mortgages. 34-38. Lines 14-18 less amounts acquired by private finance plus amounts 11. Credit market funds raised by federally sponsored credit agencies, and net borrowed by private finance. Line 38 includes mortgages. issues of federally related mortgage pool securities. 40. Mainly an offset to line 9. 13. Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33. 47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46. Also sum of lines 28 and 47 less lines 40 and 46. 48. Line 2/line 1. 18. Includes farm and commercial mortgages. 49. Line 20/line 13. 26. Line 39 less lines 40 and 46. 50. Sum of lines 10 and 29. 27. Excludes equity issues and investment company shares. Includes line 19. 51. 53. Includes issues by financial institutions. 29. Foreign deposits at commercial banks, bank borrowings from foreign NOTE. Full statements for sectors and transaction types in flows and in amounts branches, and liabilities of foreign banking agencies to foreign affiliates, less outstanding may be obtained from Flow of Funds Section, Division of Research claims on foreign affiliates and deposits by banking in foreign banks. and Statistics, Board of Governors of the Federal Reserve System, Washington, 30. Demand deposits and note balances at commercial banks. D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • February 1991 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING Billions of dollars; period-end levels. 1989 1990 Ql Q2 Q3 Q4 Ql' Q2' Q3 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 6,804.5 7,646.3 8,343.9 9,0%.0 9,267.7 9,438.7r 9,605.1' 9,805.2' 9,975.7 10,136.3 10,309.4 By sector and instrument 2 U.S. government 1,600.4 1,815.4 1,960.3 2,117.8 2,155.7 2,165.7 2,206.1' 2,269.4' 2,360.9 2,401.7 2,470.2 i Treasury securities 1,597.1 1,811.7 1,955.2 2,095.2 2,133.4 2,142.1 2,180.7 2,245.2 2,329.3 2,368.8 2,437.6 4 Agency issues and mortgages 3.3 3.6 5.2 22.6 22.3 23.6 25.4' 24.2' 31.6 32.9 32.6 5 Private domestic nonfinancial sectors 5,204.1 5,831.0 6,383.6 6,978.2 7,112.0r 7,273.<y 7,399.0' 7,535.8' 7,614.8 7,734.6 7,839.2 b Debt capital instruments 3,485.2 3,962.7 4,427.9 4,886.4 4,989.1 5,091.4 5,189.9 5,283.3' 5,355.5 5,443.2 5,523.0 / Tax-exempt obligations 655.5 679.1 728.4 790.8 798.6 804.9 816.4 821.2 822.4 826.7 836.3 8 Corporate bonds 542.6 669.4 748.8 851.7 866.3' 887.9 903.5 925.4' 936.5 953.3 %2.8 9 Mortgages 2,287.1 2,614.2 2,950.7 3,243.8 3,324.2 3,398.6 3,470.0 3,536.6 3,5%.6 3,663.3 3,724.0 10 Home mortgages 1,490.2 1,720.8 1,943.1 2,173.9 2,229.0 2,287.6 2,347.6 2,404.3 2,450.0 2,512.8 2,569.3 11 Multifamily residential 213.0 246.2 270.0 286.7 293.1 298.3 301.2 304.4 307.8 306.5 306.6 12 Commercial 478.1 551.4 648.7 6%.4 716.2 725.9 734.9 742.6 754.1 759.4 763.9 U Farm 105.9 95.8 88.9 86.8 86.0 86.8 86.3 85.3 84.7 84.5 84.2 14 Other debt instruments 1,718.9 1,868.2 1,955.7 2,091.9 2,122.9' 2,181.6'" 2,209.1' 2,252.6' 2,259.3 2,291.4 2,316.2 15 Consumer credit 601.8 659.8 693.2 743.5 741.7 756.7 771.0 790.6 774.3 783.3 794.4 16 Bank loans n.e.c 602.3 666.0 673.3 713.1 725.6 740.3 750.7 763.0 756.3 761.8 762.6 11 Open market paper 72.2 62.9 73.8 85.7 %.l 110.1 113.3 107.1 126.0 128.7 131.8 18 Other 442.6 479.6 515.3 549.6 559.4 574.5' 574.1' 591.9' 602.6 617.6 627.4 19 By borrowing sector 5,204.1 5,831.0 6,383.6 6,978.2 7,112.0r 7,273.0' 7,399.0' 7,535.8' 7,614.8 7,734.6 7,839.2 20 State and local governments 473.9 510.1 558.9 604.5 612.4 619.9 629.9 634.1 634.3 636.8 645.1 21 Households 2,296.0 2,5%. 1 2,879.1 3,191.5 3,257.9 3,330.7' 3,411.4' 3,501.8' 3,544.5 3,619.8 3,698.1 11 Nonfinancial business 2,434.2 2,724.8 2,945.6 3,182.2 3,241.7' 3,322.5 3,357.6 S^OO.C 3,436.1 3,478.0 3,4%. 1 2i Farm 173.4 156.6 145.5 137.6 136.7 139.5 139.2 139.2 138.2 140.7 141.8 24 Nonfarm noncorporate 898.3 997.6 1,075.4 1,145.1 1,163.9 1,177.6 1,183.0 1,195.9 1,206.5 1,212.4 1,213.9 25 Corporate 1,362.4 1,570.6 1,724.6 1,899.5 1,941.0 2,005.3 2,035.5' 2,064.8 2,091.4 2,124.8 2,140.4 26 Foreign credit market debt held in United States 236.7 238.3 244.6 253.9 254.0 252.2 257.7 261.5' 260.4 271.7 277.3 2277 Bonds 71.8 74.9 82.3 89.2 90.4 92.1 94.2 94.5 102.1 107.5 108.0 28 Bank loans n.e.c 27.9 26.9 23.3 21.5 21.6 21.5 22.6 21.4 19.0 19.3 20.0 29 Open market paper 33.9 37.4 41.2 49.9 54.4 52.7 57.5 63.0 59.3 65.1 71.5 JO U.S. government loans 103.0 99.1 97.7 93.2 87.5 85.8 83.4 82.6' 80.0 79.8 77.8 31 Total domestic plus foreign 7,041.1 7,884.7 8,588.5 9,349.9 9,521.7 9,690.8r 9,862.8' 10,066.8' 10,236.1 10,408.0 10,586.6 Financial sectors 32 Total credit market debt owed by financial sectors 1,213.2 1,529.8 1,836.8 2,084.4 2,191.3 2,234.1 2,263.8 2,322.4 2,356.3 2,403.4 2,455.2 By instrument 33 U.S. government related 632.7 810.3 978.6 1,098.4 1,140.8 1,169.5 1,203.6 1,249.3 1,286.1 1,328.0 1,372.9 34 Sponsored credit agency securities 257.8 273.0 303.2 348.1 364.3 369.0 370.4 373.3 376.0 378.9 381.1 35 Mortgage pool securities 368.9 531.6 670.4 745.3 771.5 795.6 828.2 871.0 905.2 944.2 986.8 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 580.5 719.5 858.2 986.1 1,050.5 1,064.6 1,060.2 1,073.0 1,070.2 1,075.3 1,082.3 38 Corporate bonds 204.5 287.4 366.3 418.0 458.6 466.1 472.7 482.7 491.7 508.2 518.0 39 Mortgages 2.7 2.7 3.1 3.4 3.5 3.5 3.5 3.4 3.2 3.5 3.1 40 Bank loans n.e.c 32.1 36.1 32.8 34.2 32.2 33.8 34.1 36.0 33.2 34.8 34.9 41 Open market paper 252.4 284.6 322.9 377.7 392.5 399.4 398.8 409.1 409.1 402.5 408.5 42 Loans from Federal Home Loan Banks... 88.8 108.6 133.1 152.8 163.8 161.9 151.1 141.8 132.9 126.3 117.9 43 Total, by sector 1,213.2 1,529.8 1,836.8 2,084.4 2,191.3 2,234.1 2,263.8 2,322.4 2,356.3 2,403.4 2,455.2 44 Sponsored credit agencies 263.9 278.7 308.2 353.1 369.3 374.0 375.4 378.3 381.0 383.8 386.1 45 Mortgage pools 368.9 531.6 670.4 745.3 771.5 795.6 828.2 871.0 905.2 944.2 986.8 46 Private financial sectors 580.5 719.5 858.2 986.1 1,050.5 1,064.6 1,060.2 1,073.0 1,070.2 1,075.3 1,082.3 47 Commercial banks 79.2 75.6 81.8 78.8 73.3 75.7 77.0 77.4 73.4 73.3 70.2 48 Bank affiliates 106.2 116.8 131.1 136.2 140.0 141.2 144.0 142.5 140.8 133.0 126.0 49 Savings and loan associations 98.9 119.8 139.4 159.3 170.1 167.9 155.7 145.2 137.1 125.8 114.8 50 Mutual savings banks 4.4 8.6 16.7 18.6 17.8 17.7 17.5 17.2 15.4 16.6 17.4 51 Finance companies 261.2 328.1 378.8 446.1 464.3 478.0 481.2 4%. 2 500.3 511.1 529.9 52 REITs 5.6 6.5 7.3 11.4 11.1 10.6 10.0 10.1 10.1 9.8 9.5 53 SCO issuers 25.0 64.0 103.1 135.7 173.8 173.5 174.9 184.4 193.1 205.7 214.5 All sectors 54 Total credit market debt 8,254.4 9,414.4 10,425.3 11,434.3 11,713.0' 11,925.0' 12,126.6' 12,389.1' 12,592.4 12,811.4 13,041.8 55 U.S. government securities 2,227.0 2,620.0 2,933.9 3,211.1 3,291.5 3,330.3 3,404.7' 3,513.7' 3,642.0 3,724.8 3,838.1 56 State and local obligations 655.5 679.1 728.4 790.8 798.6 804.9 816.4 821.2 822.4 826.7 836.3 57 Corporate and foreign bonds 818.9 1,031.7 1,197.4 1,358.9 1,415.2 1,446.1 1,470.5 1,502.6 1,530.3 1,569.0 1,588.8 58 Mortgages 2,289.8 2,617.0 2,953.8 3,247.2 3,327.7 3,402.1 3,473.6 3,540.1 3,599.9 3,666.7 3,727.1 59 Consumer credit 601.8 659.8 693.2 743.5 741.7 756.7 771.0 790.6 774.3 783.3 794.4 60 Bank loans n.e.c 662.4 729.0 729.5 768.9 779.5 795.6 807.4 820.3 808.6 815.9 817.6 61 Open market paper 358.5 384.9 437.9 513.4 543.0 562.2 569.6 579.2 594.5 596.3 611.7 62 Other loans 640.5 693.1 751.1 800.5 815.7 827.1' 813.5' 821.4' 820.5 828.7 828.0 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. 1989 1990 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11998855 11998866 11998877 11998888 Ql' Q2r Q3r Q4' Ql' Q2r Q3 1 Total funds advanced in credit markets to domestic nonfinancial sectors 6,804.5 7,646.3 8,343.9 9,096.0 9,267.7 9,438.7 9,605.1 9,805.2 9,975.7 10,136.3 1100,,330099..44 By public agencies and foreign 7 Total held 1,474.0 1,779.4 2,006.6 2,199.7 2,256.0 2,263.5 22,,331177..44 22,,337799..33 22,,441199..99 22,,550033..11 22,,557744..22 3 U.S. government securities 435.4 509.8 570.9 651.5 665.0 642.7 668.6 682.1 679.2 706.1 727.4 4 Residential mortgages 518.2 678.5 814.1 900.4 927.2 954.4 991.1 1,038.4 1,077.7 1,127.6 1,178.2 5 FHLB advances to thrifts 88.8 108.6 133.1 152.8 163.8 161.9 151.1 141.8 132.9 126.3 117.9 6 Other loans and securities 431.6 482.4 488.6 495.1 500.0 504.5 506.6 517.0 530.2 543.1 550.7 7 Total held, by type of lender 1,474.0 1,779.4 2,006.6 2,199.7 2,256.0 2,263.5 2,317.4 2,379.3 2,419.9 2,503.1 2,574.2 8 U.S. government 248.6 255.3 240.0 217.6 212.9 211.5 207.8 207.1 216.2 228.1 235.3 9 Sponsored credit agencies and mortgage pools ... 659.8 835.9 1,001.0 1,113.0 1,151.1 1,157.8 1,193.5 1,238.2 1,274.0 1,315.0 1,356.8 10 Monetary authority 186.0 205.5 230.1 240.6 235.4 238.4 227.6 233.3 224.4 237.8 240.8 11 Foreign 379.5 482.8 535.5 628.5 656.6 655.7 688.5 700.6 705.2 722.1 741.4 Agency and foreign debt not in line 1 12 Sponsored credit agencies and mortgage pools ... 632.7 810.3 978.6 1,098.4 1,140.8 1,169.5 1,203.6 1,249.3 1,286.1 1,328.0 1,372.9 13 Foreign 236.7 238.3 244.6 253.9 254.0 252.2 257.7 261.5 260.4 271.7 277.3 Private domestic holdings 14 Total private holdings 6,199.9 6,915.6 7,560.4 8,248.5 8,406.5 8,596.9 8,749.0 8,936.8 99,,110022..33 99,,223333..00 99,,338855..33 15 U.S. government securities 1,791.6 2,110.1 2,363.0 2,559.7 2,626.5 2,687.6 2,736.1 2,831.6 2,962.8 3,018.6 3,110.6 16 State and local obligations 655.5 679.1 728.4 790.8 798.6 804.9 816.4 821.2 822.4 826.7 836.3 17 Corporate and foreign bonds 517.3 606.6 674.3 765.6 776.5 797.7 814.5 831.6 847.5 863.3 872.6 18 Residential mortgages 1,185.1 1,288.5 1,399.0 1,560.2 1,594.9 1,631.5 1,657.7 1,670.4 1,680.1 1,691.8 1,697.7 19 Other mortgages and loans 2,139.3 2,339.8 2,528.7 2,724.9 2,773.7 2,837.0 2,875.3 2,923.8 2,922.4 2,958.9 2,986.0 20 LESS: Federal Home Loan Bank advances 88.8 108.6 133.1 152.8 163.8 161.9 151.1 141.8 132.9 126.3 117.9 Private financial intermediation 21 Credit market claims held by private financial institutions 5,289.4 6,018.0 6,564.5 7,128.6 7,269.9 7,424.6 7,507.8 7,662.7 7,747.2 7,813.2 77,,991133..66 ?? Commercial banking 1,989.5 2,187.6 2,323.0 2,479.3 2,501.4 2,549.0 2,599.6 2,656.6 2,680.4 2,720.7 2,751.6 73 Savings institutions 1,191.2 1,297.9 1,445.5 1,567.7 1,570.6 1,561.0 1,530.3 1,480.7 1,461.5 1,408.4 1,372.7 24 Insurance and pension funds 1,365.3 1,525.4 1,705.1 1,903.8 1,954.4 1,999.0 2,031.6 2,081.6 2,121.7 2,169.1 2,211.5 25 Other finance 743.4 1,007.1 1,091.0 1,177.9 1,243.5 1,315.6 1,346.2 1,443.8 1,483.6 1,515.0 1,577.8 ?6 Sources of funds 5,289.4 6,018.0 6,564.5 7,128.6 7,269.9 7,424.6 7,507.8 7,662.7 7,747.2 7,813.2 7,913.6 71 Private domestic deposits and RPs 2,926.1 3,199.0 3,354.2 3,599.1 3,627.7 3,679.1 3,742.5 3,824.3 3,847.5 3,833.5 3,845.2 28 Credit market debt 580.5 719.5 858.2 986.1 1,050.5 1,064.6 1,060.2 1,073.0 1,070.2 1,075.3 1,082.3 ?9 Other sources 1,782.9 2,099.5 2,352.1 2,543.5 2,591.7 2,680.9 2,705.1 2,765.5 2,829.5 2,904.4 2,986.1 30 Foreign funds 5.6 18.6 62.3 71.5 59.3 49.4 55.0 61.6 63.4 66.3 95.4 31 Treasury balances 25.8 27.5 21.6 29.0 13.5 34.4 30.3 25.6 16.7 32.1 36.6 37 Insurance and pension reserves 1,289.3 1,398.5 1,527.8 1,692.5 1,737.3 1,770.0 1,785.7 1,826.0 1,860.8 1,907.8 1,941.7 33 Other, net 462.1 655.0 740.3 750.5 781.5 827.2 834.0 852.3 888.6 898.2 912.4 Private domestic nonfinancial investors 34 Credit market claims 1,491.0 1,617.0 1,854.1 2,106.0 2,187.1 2,236.9 2,301.5 2,347.1 22,,442255..33 22,,449955..11 22,,555544..00 35 U.S. government securities 803.3 848.7 936.7 1,072.2 1,100.0 1,122.9 1,171.3 1,206.4 1,264.1 1,296.9 1,357.4 36 Tax-exempt obligations 231.5 212.6 274.4 340.9 348.8 353.8 363.1 369.3 362.8 368.1 371.3 37 Corporate and foreign bonds 37.1 90.5 114.0 100.4 126.4 128.2 131.1 130.5 154.1 157.6 156.9 38 Open market paper 135.2 145.1 178.5 218.0 225.8 236.7 239.3 228.7 229.6 247.7 237.6 39 Other 283.8 320.1 350.4 374.4 386.0 395.3 396.8 412.1 414.7 424.8 430.8 40 Deposits and currency 3,116.8 3,410.1 3,583.9 3,832.3 3,864.2 3,926.2 3,979.0 4,073.6 4,095.8 4,092.6 4,108.9 41 Currency 171.9 186.3 205.4 220.1 220.7 226.4 224.4 231.8 234.4 242.7 247.2 47 Checkable deposits 420.3 516.6 515.4 527.2 494.2 495.0 486.1 528.7 501.3 510.7 500.2 43 Small time and savings accounts 1,831.9 1,948.3 2,017.1 2,156.2 2,168.9 2,189.3 2,224.4 2,256.7 2,289.8 2,288.1 2,292.3 44 Money market fund shares 225.6 268.9 297.8 318.0 342.7 362.1 391.0 403.3 436.7 426.3 456.7 45 Large time deposits 339.9 336.7 373.9 414.7 430.8 435.7 440.0 437.8 431.5 417.9 409.0 46 Security RPs 108.3 128.5 150.1 182.9 191.1 196.9 200.9 197.9 188.3 190.5 186.9 47 Deposits in foreign countries 18.8 24.8 24.3 13.1 15.8 20.7 12.1 17.6 13.9 16.4 16.6 48 Total of credit market instruments, deposits, and currency 4,607.8 5,027.2 5,438.0 5,938.2 6,051.2 6,163.0 6,280.5 6,420.7 6,521.1 6,587.7 6,663.0 49 Public holdings as percent of total 20.9 22.6 23.4 23.5 23.7 23.4 23.5 23.6 23.6 24.0 24.3 50 Private financial intermediation (in percent) 85.3 87.0 86.8 86.4 86.5 86.4 85.8 85.7 85.1 84.6 84.3 51 Total foreign funds 385.1 501.3 597.8 700.1 715.9 705.1 743.5 762.3 768.6 788.4 836.7 MEMO: Corporate equities not included above 52 Total market value 2,823.9 3,360.6 3,325.0 3,619.8 3,730.5 4,069.7 4,395.4 4,378.9 4,170.2 4,336.2 3,769.7 53 Mutual fund shares 240.2 413.5 460.1 478.3 486.3 514.8 543.9 555.1 550.3 587.9 547.3 54 Other equities 2,583.7 2,947.1 2,864.9 3,141.6 3,244.2 3,555.0 3,851.5 3,823.8 3,620.0 3,748.3 3,222.4 55 Holdings by financial institutions 800.3 974.6 1,039.5 1,176.1 1,237.2 1,343.0 1,478.5 1,492.3 1,440.4 1,558.3 1,334.2 56 Other holdings 2,023.6 2,385.9 2,285.5 2,443.7 2,493.3 2,726.8 2,917.0 2,886.6 2,729.8 2,778.0 2,435.4 NOTES BY LINE NUMBER. 32. Excludes net investment of these reserves in corporate equities. 1. Line 1 of table 1.59. 33. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 8-11. 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 21Aine 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 • February 1991 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1990 MMeeaassuurree 11998877 11998888 11998899 Mar. Apr. May June July Aug. Sept.' Oct. Nov. 1 Industrial production (1987 = 100)' 100.0 105.4 108.1 108.9 108.8 109.4 110.1 110.4 110.5' 110.4 109.4' 107.5 Market groupings 2 Products, total (1987 = 100) 100.0 105.3 108.6 110.1 109.8 110.5 110.9 110.9 110.9 111.1 110.1 108.4 3 Final, total (1987 = 100) 100.0 105.6 109.1 110.7 110.4 111.2 111.7 111.7 111.9' 112.3 111.4 109.4 4 Consumer goods (1987 = 100) 100.0 104.0 106.7 107.5 107.2 107.4 107.8 107.5 107.8 108.1 107.0' 104.9 5 Equipment (1987 = 100) 100.0 107.6 112.3 114.9 114.7 116.2 116.8 117.2 117.2' 117.8 117.0r 115.3 6 Intermediate (1987 = 100) 100.0 104.4 106.8 108.2 108.0 108.3 108.3 108.4 107.9' 107.1 106.3 105.2 7 Materials (1987 = 100) 100.0 105.6 107.4 107.1 107.3 107.7 108.8 109.6 109.7' 109.3 108.2' 106.2 Industry groupings 8 Manufacturing (1987 = 100) 100.0 105.8 108.9 109.8 109.5 110.3 110.8 111.1 111.1 111.0 110.1' 108.2 Capacity utilization (percent)2 9 Manufacturing 81.4 83.9 83.9 82.9 82.5 82.8 83.0 83.0 82.8' 82.5 81.6' 80.0 10 Construction contracts (1982 = 100)3 164.8 166.4 169. r 157.0 147.0 155.0 153.0 148.0 146.0 166.0 167.0 166.0 11 Nonagricultural employment, total4 123.9 128.0 131.7 133.5 133.6 134.1 134.4 134.3 134.1 134.1 133.9' 133.6 12 Goods-producing, total 101.5 103.7 105.3 103.8 103.4 103.5 103.4 103.1 102.8 102.4 101.8' 100.7 13 Manufacturing, total 96.6 98.6 99.6 97.6 97.5 97.4 97.3 97.2 96.9 96.6 96.3 95.2 14 Manufacturing, production- worker ... 91.7 93.7 94.6 92.4 92.3 92.1 92.0 92.0 91.7 91.2 90^ 89.8 15 Service-producing 133.3 138.2 142.7 146.0 146.2 147.0 147.4 147.3 147.3 147.4 147.4 147.3 16 Personal income, total 234.3 253.2 272.7 285.8 286.4 287.5 288.7 290.1 290.8' 292.2 292.2 293.0 17 Wages and salary disbursements 226.4 244.6 258.9 268.6 269.9 271.2 272.8 274.4 274.5' 276.4 274.9 274.5 18 Manufacturing 183.8 196.5 203.1 204.6 203.9 205.8 206.8 206.9 206.7 207.0 206.0 202.6 19 Disposable personal income5 231.6 252.2 270.1 283.9 283.6 284.4 285.8 286.9' 287.6' 288.7 288.7 289.5 20 Retail sales® 213.6 228.0 240.6 248.7 246.3 246.1 248.9 250.1 250.2 252.4 252.9' 252.5 Prices7 21 Consumer (1982-84 = 100) 113.6 118.3 124.0 128.7 128.9 129.2 129.9 130.4 131.6 132.7 133.5 133.8 22 Producer finished goods (1982 = 100) ... 105.4 108.0 113.6 117.2 117.2 117.7 117.8 118.2' 119.2 120.3 122.3 122.9 1. A major revision of the industrial production index and the capacity 6. Based on Bureau of Census data published in Survey of Current Business. utilization rates was released in April 1990. See "Industrial Production: 1989 7. Data without seasonal adjustment, as published in Monthly Labor Review. Developments and Historical Revision" in the Federal Reserve Bulletin, vol. 76 Seasonally adjusted data for changes in the price indexes may be obtained from (April 1990), pp. 187-204. 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 latest month are preliminary and the Company, F. W. Dodge Division. prior three months have been revised. See "Recent Developments in Industrial 4. Based on data in Employment and Earnings (U.S. Department of Labor). Capacity and Utilization," Federal Reserve Bulletin, vol. 76 (June 1990), pp. Series covers employees only, excluding personnel in the Armed Forces. 411-35. 5. Based on data in Survey of Current Business (U.S. Department of Commerce). 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. 1990 CCaatteeggoorryy 11998877 11998888 11998899 Apr. May June July Aug. Sept. Oct. Nov. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 185,010 186,837 188,601 189,844 189,983 190,122 190,275 190,411 190,568 190,717 190,854 2 Labor force (including Armed Forces)1 122,122 123,893 126,077 127,061 127,159 126,981 126,906 126,810 127,134 126,976 126,773 3 Civilian labor force 119,865 121,669 123,869 124,886 125,004 124,836 124,767 124,660 124,967 124,784 124,616 Employment 4 Nonagricultural industries 109,232 111,800 114,142 114,983 115,045 115,041 114,867 114,521 114,717 114,545 114,071 5 Agriculture 3,208 3,169 3,199 3,133 3,305 3,348 3,085 3,137 3,181 3,167 3,190 6 Number 7,425 6,701 6,528 6,770 6,653 6,447 6,814 7,003 7,069 7,073 7,355 7 Rate (percent of civilian labor force) 6.2 5.5 5.3 5.4 5.3 5.2 5.5 5.6 5.7 5.7 5.9 8 Not in labor force 62,888 62,944 62,524 62,783 62,824 63,141 63,369 63,601 63,434 63,741 64,081 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 102,200 105,584 108,573 110,177 110,617 110,829 110,740 110,613 110,612' 110,434' 110,167 10 Manufacturing 19,024 19,403 19,611 19,190 19,167 19,148 19,131 19,084 19,019' 18,949' 18,749 11 Mining 717 721 722 734 738 744 745 735 736 735 742 12 Contract construction 4,967 5,125 5,302 5,256 5,286 5,270 5,229 5,194 5,176' 5,095' 5,033 13 Transportation and public utilities 5,372 5,548 5,703 5,809 5,833 5,846 5,841 5,846 5,870' 5,874' 5,870 14 Trade 24,327 25,139 25,807 26,141 26,164 26,205 26,225 26,222 26,214' 26,137' 26,057 15 Finance 6,547 6,676 6,814 6,823 6,838 6,844 6,842 6,852 6,851' 6,847' 6,836 16 Service 24,236 25,600 26,889 27,969 28,094 28,225 28,287 28,387 28,440' 28,463' 28,543 17 Government 17,010 17,372 17,726 18,255 18,497 18,547 18,440 18,293 18,306' 18,334' 18,337 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 • February 1991 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1989 1990 1989 1990 1989 1990 Q4 Ql Q2 Q3r Q4 Ql Q2 Q3 Q4 Ql Q2 Q3r Output (1987 = 100) Capacity (percent of 1987 output) Utilization rate (percent) 1 Total industry 108.1 108.3 109.4 110.4 129.5 130.3 131.2 132.1 83.5 83.1 83.4 83.6 2 Manufacturing 108.7 109.2 110.2 111.1 131.1 132.1 133.2 134.2 82.9 82.6 82.8 82.7 3 Primary processing 106.1 106.4 106.3 107.5 123.4 124.2 124.9 125.7 85.9 85.7 85.1 85.6 4 Advanced processing 109.9 110.5 112.1 112.7 134.7 135.8 137.0 138.2 81.6 81.4 81.8 81.5 5 Durable 110.0 110.4 112.4 113.5 135.2 136.2 137.2 138.3 81.3 81.0 81.9 82.1 6 Lumber and products 104.8 105.1 102.3 101.3 122.3 123.2 124.1 125.0 85.7 85.3 82.5 81.1 7 Primary metals 105.3 106.1 107.4 112.0 126.9 127.2 127.3 127.4 83.0 83.4 84.3 87.9 8 Iron and steel 104.5 107.1 107.5 114.2 131.5 131.9 132.0 132.1 79.5 81.2 81.4 86.4 9 Nonferrous 106.4 104.6 107.1 108.9 120.2 120.4 120.6 120.9 88.5 86.9 88.8 90.1 10 Nonelectrical machinery 121.9 124.4 126.7 128.6 150.1 151.6 153.2 154.9 81.2 82.1 82.7 83.0 11 Electrical machinery 110.1 111.1 112.2 112.4 136.0 137.4 138.8 140.2 81.0 80.9 80.8 80.2 12 Motor vehicles and parts 99.1 91.5 102.6 103.7 132.0 132.5 133.5 134.5 75.1 69.0 76.9 77.2 13 Aerospace and miscellaneous transportation equipment 106.7 111.6 113.6 114.5 132.5 133.4 134.3 135.2 80.6 83.6 84.6 84.7 14 Nondurable 107.1 107.7 107.5 107.9 125.9 126.9 128.0 129.0 85.0 84.8 84.0 83.6 15 Textile mill products 100.3 101.1 102.4 101.1 115.5 116.0 116.6 117.1 86.9 87.2 87.9 86.4 16 Paper and products 104.2 103.9 104.5 107.2 113.3 113.9 114.7 115.5 92.0 91.2 91.1 92.9 17 Chemicals and products 108.9 109.9 109.9 110.6 132.1 133.4 134.7 135.9 82.5 82.4 81.6 81.3 18 Plastics materials 106.2 111.7 116.3 117.2 123.7 126.1 128.4 130.6 85.8 88.6 90.6 89.7 19 Petroleum products 106.8 109.9 106.0 110.0 121.0 121.1 121.1 121.1 88.3 90.8 87.5 90.9 20 Mining 100.6 101.3 102.5 103.4 116.1 115.7 115.2 114.8 86.7 87.6 88.9 90.0 21 Utilities 110.6 105.7 107.8 110.6 125.7 126.0 126.4 126.7 88.0 83.9 85.3 87.3 22 Electric 111.8 108.4 111.0 112.8 120.8 121.1 121.6 122.1 92.6 89.5 91.3 92.4 Previous cycle2 Latest cycle3 1989 1990 High Low High Low Nov. Apr. May June July Aug/ Sept/ Oct/ Nov.P Capacity utilization rate (percent) 23 Total industry 89.2 72.6 87.3 71.8 83.5 83.1 83.4 83.7 83.8 83.6 83.3 82.4 80.9 24 Manufacturing 88.9 70.8 87.3 70.0 83.0 82.5 82.8 83.0 83.0 82.8 82.5 81.6 80.0 25 Primary processing 92.2 68.9 89.7 66.8 86.1 85.0 84.9 85.5 86.0 85.9 84.7 83.8 82.4 26 Advanced processing 87.5 72.0 86.3 71.4 81.7 81.5 82.0 81.9 81.7 81.4 81.5 80.7 78.9 27 Durable 88.8 68.5 86.9 65.0 81.4 81.2 82.1 82.4 82.2 82.1 81.9 80.8 78.6 28 Lumber and products 90.1 62.2 87.6 60.9 85.7 83.4 81.9 82.0 83.1 80.4 79.7 78.7 75.2 29 Primary metals 100.6 66.2 102.4 46.8 82.6 83.6 83.4 86.0 86.6 89.9 87.1 84.6 84.0 30 Iron and steel 105.8 66.6 110.4 38.3 79.1 80.8 79.9 83.6 83.7 89.6 86.0 83.4 83.2 31 Nonferrous 92.9 61.3 90.5 62.2 88.0 87.9 88.8 89.8 90.9 90.5 88.9 86.6 85.1 32 Nonelectrical machinery 96.4 74.5 92.1 64.9 81.9 82.3 82.8 82.9 83.1 83.1 82.7 82.0 81.2 33 Electrical machinery 87.8 63.8 89.4 71.1 81.0 80.5 81.0 81.0 80.3 80.3 80.0 78.7 78.1 34 Motor vehicles and parts 93.4 51.1 93.0 44.5 75.0 71.9 77.9 80.7 76.6 75.1 79.8 76.9 63.1 35 Aerospace and miscellaneous transportation equipment 77.0 66.6 81.1 66.9 80.2 84.6 84.5 84.5 85.4 84.4 84.3 83.6 82.9 36 Nondurable 87.9 71.8 87.0 76.9 85.2 84.2 83.9 83.8 84.0 83.7 83.2 82.6 81.9 il Textile mill products 92.0 60.4 91.7 73.8 86.0 86.7 88.1 88.8 88.0 85.7 85.3 83.9 82.5 38 Paper and products 96.9 69.0 94.2 82.0 91.9 92.0 90.7 90.6 93.5 92.2 92.9 91.4 91.7 39 Chemicals and products 87.9 69.9 85.1 70.1 83.1 82.2 81.1 81.6 81.5 81.7 80.8 8800..33 8800..00 40 Plastics materials 102 0 50 6 90 9 63 4 88 0 90 8 90 9 90 0 90 5 88 9 41 Petroleum products 96.7 81.1 89.5 68.2 90.3 88.2 86.4 87.9 91.3 91.0 90.3 89.7 87.8 42 Mining 94.4 88.4 96.6 80.6 87.1 89.2 88.7 88.8 90.5 89.2 90.4 89.6 89.6 43 Utilities 95.6 82.5 88.3 76.2 86.2 84.5 84.7 86.8 86.6 87.9 87.4 85.9 82.7 44 Electric 99.0 82.7 88.3 78.7 90.7 90.3 90.7 92.9 91.9 93.0 92.3 90.7 87.3 1. These data also appear in the Board's G.17 (419) release. For address, see 2. Monthly high 1973; monthly low 1975. inside front cover. For a detailed description of the series, see "Recent Devel- 3. Monthly highs 1978 through 1980; monthly lows 1982. opments in Industrial Capacity and Utilization," Federal Reserve Bulletin, vol. 76 (June 1990), pages 411-35. 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 1989 GGrroouuppss por- aavvgg.. tion Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug/ Sept/ OOcctt// NNoovv.."" Index (1987 = 100) MAJOR MARKET 1 Total index 100.0 108.1 108.1 108.6 107.5 108.5 108.9 108.8 109.4 110.1 110.4 110.5 110.4 109.4 107.5 ? Products 60.8 108.6 108.9 109.7 108.4 109.4 110.1 109.8 110.5 110.9 110.9 110.9 111.1 110.1 108.4 Final products 46.0 109.1 109.4 110.3 108.5 109.7 110.7 110.4 111.2 111.7 111.7 111.9 112.3 111.4 109.4 4 Consumer goods 26.0 106.7 107.4 108.3 106.0 107.0 107.5 107.2 107.4 107.8 107.5 107.8 108.1 107.0 104.9 Durable consumer goods 5.6 107.9 105.7 106.8 99.4 106.2 110.8 107.3 109.3 112.1 108.3 107.4 110.0 106.6 99.6 6 Automotive products 2.5 106.9 102.4 104.5 85.2 99.3 109.3 102.4 107.0 112.2 106.7 104.6 111.7 106.9 92.7 7 Autos and trucks 1.5 105.7 98.4 100.1 66.3 92.7 107.7 95.8 105.6 112.9 104.8 101.5 113.0 107.2 84.2 8 Autos, consumer .9 101.2 92.8 92.6 62.1 86.9 100.5 87.7 96.8 103.8 98.0 97.2 111.5 104.3 80.7 9 Trucks, consumer .6 113.3 108.0 112.6 73.3 102.3 120.0 109.3 120.4 128.3 116.1 108.8 115.4 112.2 90.2 10 Auto parts and allied goods... 1.0 108.7 108.2 111.2 113.6 109.4 111.6 112.2 108.9 111.2 109.5 109.3 109.9 106.5 105.3 11 Other 3.1 108.7 108.4 108.6 110.6 111.6 112.0 111.2 111.1 112.0 109.5 109.6 108.7 106.3 105.1 1? Appliances, A/C, and TV .8 106.7 102.0 101.0 108.4 107.8 108.1 104.4 103.6 107.5 100.2 101.9 100.6 94.6 95.1 N Carpeting and furniture .9 101.5 100.4 102.0 103.7 104.7 105.9 107.5 107.6 107.8 106.0 104.9 104.5 103.9 100.8 14 Miscellaneous home goods ... 1.4 114.5 117.1 117.1 116.2 118.2 118.0 117.3 117.5 117.2 116.9 116.8 115.9 114.5 113.5 15 Nondurable consumer goods 20.4 106.4 107.8 108.7 107.8 107.2 106.6 107.1 106.9 106.6 107.3 107.9 107.6 107.1 106.3 16 Foods and tobacco 9.1 104.2 105.8 106.4 105.5 106.2 105.8 105.6 105.2 104.4 105.1 105.7 105.1 105.4 104.8 17 Clothing 2.6 101.6 100.1 99.4 100.6 99.6 97.0 96.0 96.4 95.7 95.6 94.6 94.2 92.9 92.3 18 Chemical products 3.5 109.4 111.3 110.3 112.7 112.0 111.0 113.5 113.0 112.8 112.4 114.3 113.6 113.3 113.5 19 Paper products 2.5 114.3 118.1 116.9 116.2 117.6 116.4 118.1 118.6 118.3 120.3 119.3 121.0 119.9 120.5 ?0 Energy 2.7 106.7 108.0 115.2 107.9 101.5 103.1 104.1 104.1 105.3 106.7 109.0 108.1 106.3 102.2 71 Fuels .7 102.8 103.0 100.5 105.1 106.6 101.8 101.6 98.2 102.6 104.6 106.0 105.6 103.8 100.6 22 Residential utilities 2.0 108.1 109.8 120.7 109.0 99.6 103.6 105.0 106.3 106.3 107.5 110.0 109.0 107.2 102.8 71 Equipment, total 20.0 112.3 112.0 112.9 111.8 113.3 114.9 114.7 116.2 116.8 117.2 117.2 117.8 117.0 115.3 74 Business equipment 13.9 119.1 118.7 119.9 118.0 120.1 122.2 121.6 123.5 124.4 125.0 125.4 126.5 125.4 123.0 75 Information processing and related .. 5.6 121.7 123.5 124.0 124.0 124.7 126.0 126.4 126.8 126.2 125.7 76 Office and computing 1.9 137.2 141.0 142.7 142.7 144.3 147.2 149.3 148.9 150.6 152.7 115522**22 115544^^55 115533..99 115522..88 77 4.0 113.8 113.4 112.8 113.5 113.4 113.9 114.2 115.5 115.3 116.0 78 Transit 2.5 123.8 117.0 123.4 111.4 122.7 130.6 126.2 132.5 137.4 135.5 135.4 140.5 137.6 125.9 79 Autos and trucks 1.2 103.9 98.0 97.6 69.6 91.7 104.5 95.2 105.7 112.3 103.6 IN Other 1.9 116.5 117.8 118.5 118.7 117.4 117.8 117.6 119.6 118.5 117.6 11 Defense and space equipment 5.4 97.4 96.7 96.6 97.5 97.6 97.5 97.3 97.6 97.6 97.8 97.7 97.3 97. i 96.6 17 Oil and gas well drilling .6 93.7 99.9 100.3 98.3 100.1 106.0 114.3 118.6 119.5 116.2 106.9 107.4 107.1 109.7 33 Manufactured homes .2 92.3 89.4 91.6 91.6 94.3 92.9 89.7 91.3 92.8 90.0 93.4 91.8 89.0 14 Intermediate products, total 14.7 106.8 107.3 107.9 108.0 108.4 108.2 108.0 108.3 108.3 108.4 107.9 107.1 106.3 105.2 15 Construction supplies 6.0 106.1 107.0 107.4 107.9 108.2 107.3 106.4 105.5 106.0 106.7 105.3 103.5 102.5 100.8 36 Business supplies 8.7 107.3 107.5 108.2 108.0 108.5 108.9 109.1 110.2 109.8 109.5 109.7 109.5 109.0 108.3 17 39.2 107.4 107.0 106.9 106.2 107.1 107.1 107.3 107.7 108.8 109.6 109.7 109.3 108.2 106.2 18 Durable goods materials 19.4 111.6 110.8 110.4 109.4 110.8 110.9 110.9 112.5 113.8 114.0 114.9 113.9 112.6 109.6 19 Durable consumer parts 4.2 109.0 105.7 102.5 96.5 102.8 104.5 103.2 108.5 108.5 108.1 110.4 108.7 106.2 97.0 40 7.3 114.7 115.3 115.8 116.5 117.6 117.6 117.4 118.1 119.1 119.2 119.4 119.7 118.8 118.0 41 Other 7.9 110.2 109.4 109.5 109.7 108.7 108.1 108.9 109.6 111.8 112.4 113.1 111.3 110.1 108.6 47 Basic metal materials 2.8 112.1 108.6 109.3 108.5 109.9 107.5 110.2 109.2 113.6 115.5 116.3 115.4 113.0 112.9 41 Nondurable goods materials 9.0 105.3 104.9 104.3 105.4 105.8 105.2 106.1 105.2 106.1 107.8 106.8 106.7 105.9 105.6 44 Textile materials 1.2 99.8 96.1 95.8 94.6 96.2 94.9 95.6 97.4 99.4 100.2 97.8 96.9 95.2 93.7 45 Pulp and paper materials 1.9 103.8 104.6 103.7 105.0 105.3 103.0 106.0 104.5 104.8 109.0 106.9 109.4 108.2 108.8 46 Chemical materials 3.8 106.4 105.8 103.8 105.8 107.3 107.5 107.4 105.4 107.3 108.5 108.0 106.6 105.9 105.7 47 Other 2.1 107.6 108.4 110.4 110.9 108.8 108.7 109.8 109.8 108.8 109.9 109.3 110.0 109.8 109.2 48 Energy materials 10.9 101.4 101.9 102.7 101.2 101.7 102.0 101.8 101.1 102.1 103.3 103.0 103.2 102.3 100.6 49 7.2 99.9 100.5 99.0 101.1 102.1 101.2 100.3 100.1 101.2 103.3 102.1 100.3 100.4 99.0 50 Converted fuel materials 3.7 104.3 104.5 110.0 101.4 100.9 103.4 104.6 102.9 103.9 103.4 104.9 108.8 106.1 103.7 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.3 108.2 108.4 108.9 108.6 108.9 109.0 109.2 109.5 110.0 110.6 110.7 110.3 109.4 108.2 52 Total excluding motor vehicles and parts ... 95.3 108.3 108.6 109.1 109.0 109.2 109.2 109.5 109.7 110.2 110.8 110.9 110.5 109.6 108.6 51 Total excluding office and computing machines 97.5 107.4 107.3 107.7 106.6 107.6 108.0 107.8 108.4 110099..11 109.3 109.4 110099..22 110088..33 110066..44 54 Consumer goods excluding autos and trucks 24.5 106.8 107.9 108.8 108.4 107.8 107.5 107.9 107.6 107.5 107.6 110088..22 110077..88 110077..00 110066..22 55 Consumer goods excluding energy 23.3 106.7 107.3 107.5 105.8 107.6 108.0 107.5 107.9 108.3 107.8 56 Business equipment excluding autos and trucks 12.7 120.6 120.7 122.1 122.8 122.9 124.0 124.2 125.3 125.6 127.2 127.8 112288..00 127.3 112266..88 57 Business equipment excluding office and computing equipment 12.0 116.2 115.0 116.2 114.0 116.2 118.2 117.2 119.4 120.2 120.5 121.1 112211..99 120.8 111188..22 58 Materials excluding energy 28.4 109.6 108.9 108.4 108.1 109.2 109.1 109.4 110.2 111.4 112.1 112.3 111.6 110.4 108.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • February 1991 2.13—Continued 1987 1989 1990 Groups c S o I d C e p p r o o r - - a 1 v 98 g 9 . tion Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug/ Sept/ Oct/ Nov/ Index (1987 = 100) MAJOR INDUSTRY 1 Total index. 100.0 108.1 108.1 108.6 107.5 108.5 108.9 108.8 109.4 110.1 110.4 110.5 110.4 109.4 107.5 2 Manufacturing 84.4 108.9 108.9 108.8 108.1 109.6 109.8 109.5 110.3 110.8 111.1 111.1 111.0 110.1 108.2 3 Primary processing .. 26.7 106.4 106.2 105.3 106.2 106.9 106.0 105.9 106.1 107.0 107.9 108.0 106.7 105.7 104.3 4 Advanced processing 57.7 110.1 110.1 110.4 109.0 110.9 111.7 111.3 112.4 112.6 112.5 112.5 112.9 112.1 110.0 Durable 47.3 110.9 110.1 110.4 108.6 110.7 111.9 111.1 112.6 113.4 113.4 113.5 113.6 112.3 109.5 Lumber and products ... 24 2.0 103.0 104.8 106.4 106.0 104.3 105.0 103.3 101.7 102.0 103.6 100.5 99.9 98.8 94.7 Furniture and fixtures ... 25 1.4 105.3 104.4 105.1 105.1 104.8 105.9 107.6 108.0 108.7 108.0 106.7 105.5 103.5 101.4 Clay, glass, and stone products 32 2.5 108.0 108.2 108.6 110.0 108.0 107.7 105.1 106.4 106.1 106.0 106.6 104.0 103.7 103.3 Primary metals 33 3.3 109.2 104.8 102.6 105.0 107.9 105.4 106.4 106.2 109.5 110.3 114.6 111.1 107.9 107.1 Iron and steel 333311,,22 1.9 109.3 104.1 100.3 104.6 110.6 106.1 106.7 105.5 110.3 110.6 118.3 113.6 110.2 110.0 Raw steel .1 108.5 100.6 97.6 109.9 109.0 105.9 104.9 107.6 111.8 113.9 118.5 111.6 112.8 114.6 Nonferrous 333-6,9 1.4 109.0 105.8 105.8 105.6 104.0 104.3 105.9 107.1 108.3 109.8 109.4 107.5 104.8 103.0 Fabricated metal products 34 5.4 107.2 106.9 106.3 105.1 105.6 105.5 105.0 107.1 106.7 107.7 107.9 106.5 105.6 103.1 Nonelectrical machinery. 35 8.6 121.8 122.9 123.8 123.7 124.2 125.2 125.7 126.9 127.5 128.3 128.8 128.7 127.9 127.1 Office and computing machines 357 2.5 137.2 141.0 142.7 142.7 144.3 147.3 149.3 149.0 150.6 152.7 152.2 154.5 153.8 152.8 Electrical machinery 36 8.6 109.5 110.1 110.1 110.1 111.0 112.3 111.3 112.4 112.8 112.2 112.5 112.5 111.1 110.5 Transportation equipment 37 9.8 107.2 102.8 104.4 94.7 103.5 107.9 105.1 109.0 111.0 109.3 107.9 111.0 108.9 99.8 Motor vehicles and parts 371 4.7 104.9 99.0 98.7 76.8 94.1 103.5 95.8 104.0 108.0 102.7 101.0 107.5 103.9 85.5 Autos and light trucks. 2.3 105.0 97.6 99.0 65.7 91.8 106.7 94.6 104.3 111.6 103.8 Aerospace and miscellaneous transportation equipment.. 372-6,9 5.1 109.3 106.3 109.6 111.0 111.9 111.9 113.4 113.5 113.8 115.2 114.1 114.2 113.5 112.8 Instruments 38 3.3 116.4 115.6 114.8 116.0 116.2 115.7 115.8 116.5 115.0 116.9 117.5 118.4 118.5 117.7 Miscellaneous manufacturers 39 1.2 114.9 117.0 116.4 117.0 118.1 118.6 118.6 119.1 119.6 120.4 121.8 120.7 120.0 119.0 23 Nondurable 37.2 106.4 107.3 106.7 107.5 108.3 107.2 107.5 107.4 107.6 108.1 108.1 107.6 107.2 106.6 24 Foods 20 8.8 105.5 107.4 108.0 106.8 107.4 107.1 107.0 106.8 106.1 107.1 107.7 107.4 107.5 106.8 25 Tobacco products 21 1.0 99.7 98.8 98.5 101.3 102.3 100.0 98.8 97.2 95.6 98.5 96.3 95.7 95.2 96.0 26 Textile mill products 22 1.8 101.9 99.3 99.8 100.6 103.0 99.8 100.9 102.7 103.6 102.9 100.4 100.0 98.5 97.0 27 Apparel products 23 2.4 104.3 103.7 102.6 102.4 102.1 99.8 98.7 99.2 99.3 99.2 98.8 97.6 96.8 95.9 28 Paper and products 26 3.6 103.2 104.1 103.4 103.8 105.0 102.8 105.3 104.0 104.2 107.8 106.5 107.5 106.0 106.6 29 Printing and publishing .. 27 6.4 108.5 109.6 109.6 110.7 112.1 111.4 112.0 112.8 112.0 111.4 110.9 111.2 111.0 110.3 30 Chemicals and products . 28 8.6 108.5 109.8 107.6 109.9 110.5 109.5 110.3 109.2 110.3 110.4 111.1 110.1 109.8 109.8 31 Petroleum products 29 1.3 106.1 109.3 104.3 108.6 112.0 109.1 106.8 104.6 106.5 110.5 110.2 109.4 108.6 106.3 32 Rubber and plastic products 30 3.0 108.9 109.1 110.1 110.7 109.1 109.8 109.0 110.9 112.8 110.9 112.0 110.5 110.5 108.0 33 Leather and products ... 31 .3 103.7 99.4 103.0 104.3 102.9 103.3 102.6 103.5 102.0 102.5 99.6 98.3 94.7 91.8 34 Mining 7.9 100.5 101.2 100.1 101.7 101.0 101.1 102.9 102.2 102.2 104.0 102.4 103.7 102.6 102.5 35 Metal 10 .3 141.4 145.9 155.5 144.8 143.4 141.4 152.7 148.7 156.7 164.8 155.7 164.9 159.9 160.3 36 Coal 11,12 1.2 105.7 108.1 103.5 114.1 111.9 112.9 114.2 110.0 113.5 118.5 110.2 116.8 114.7 110.8 37 Oil and gas extraction 13 5.7 95.5 95.5 94.0 94.4 94.1 94.6 95.7 96.0 94.6 95.5 95.8 95.5 95.3 95.9 38 Stone and earth minerals .. 14 .7 113.9 115.8 119.7 121.2 120.0 116.5 120.2 119.9 121.1 121.8 120.1 120.7 116.1 116.5 39 Utilities... 7.6 107.1 108.3 116.1 106.8 104.0 106.2 106.7 107.1 109.7 109.7 111.4 110.8 109.1 105.1 40 Electric. 491.3PT 6.0 108.1 109.5 116.3 108.3 107.1 109.7 109.7 110.3 113.1 112.1 113.6 112.8 111.0 107.0 41 Gas .... 492,3PT 1.6 103.0 103.9 115.6 101.2 92.3 93.3 95.5 95.2 97.4 100.7 103.3 103.6 102.0 98.2 SPECIAL AGGREGATES 42 Manufacturing excluding motor vehicles and parts 79.8 109.2 109.4 109.3 109.9 110.5 110.2 110.3 110.7 110.8 111.0 43 Manufacturing excluding office and computing machines 8822..00 110088..11 110077..99 110077..77 110077..11 110088..66 110088..77 110088..33 110099..11 110099..55 110099..55 Gross value (billions of 1982 dollars, annu il rates) MAJOR MARKET 44 Products, total 1734.8 1,889.8 1,896.9 1,905.5 1,863.6 1,903.3 1,922.6 1,906.2 1,922.2 1,937.0 1,923.5 1,929.5 1,938.8 1,927.1 1,876.1 45 Final 1350.9 1,480.1 1,482.8 1,492.5 1,447.9 1,488.3 1,507.5 1,493.9 1,506.0 1,523.4 1,508.7 1,516.3 1,528.1 1,513.0 1,468.2 46 Consumer goods . 833.4 884.6 889.0 898.6 864.3 888.6 893.4 883.9 885.9 893.8 886.0 885.9 893.4 883.0 854.9 47 Equipment 517.5 595.5 593.8 594.0 583.6 599.8 614.1 610.0 620.1 629.6 622.7 630.4 634.7 630.0 613.4 48 Intermediate 384.0 409.7 414.1 413.0 415.7 415.0 415.1 412.3 416.2 413.6 414.9 413.1 410.7 414.1 407.9 1. These data also appear in the Board's G. 17 (419) release. For requests see utilization rates was released in April 1990. See "Industrial Production: 1989 address inside front cover. Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April A major revision of the industrial production index and the capacity 1990), pp. 187-204. 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. 1990 IItteemm 11998877 11998888 11998899 Jan. Feb. Mar. Apr. May June July Aug/ Sept/ Oct. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,535 1,456 1,339 1,739 1,297 1,232 1,108 1,065 1,108 1,082 1,050 992 920 2 1-family 1,024 994 932 985 974 912 813 802 796 780 762 737 708 3 2-or-more-family 511 462 407 754 323 320 295 263 312 302 288 255 212 4 Started 1,621 1,488 1,376 1,568 1,488 1,307 1,216 1,206 1,189 1,153 1,131 1,106 1,033 5 1-family 1,146 1,081 1,003 1,099 1,154 996 898 897 889 875 836 859 856 6 2-or-more-family 474 407 373 469 334 311 318 309 300 278 295 247 177 7 Under construction, end of period1 . 987 919 850 892 900 887 876 857 849 833 815 792 773 8 1-family 591 570 535 571 575 567 559 546 540 529 517 504 501 9 2-or-more-family 397 350 315 321 325 320 317 311 309 304 298 288 272 10 Completed 1,669 1,530 1,423 1,443 1,351 1,378 1,295 1,363 1,295 1,300 1,314 1,324 1,256 1,123 1,085 1,026 1,031 1,041 1,037 942 1,008 946 981 954 974 908 12 2-or-more-family 546 445 396 412 310 341 353 355 349 319 360 350 348 13 Mobile homes shipped 233 218 198 195 200 193 189 191 191 184 195 181 188 Merchant builder activity in 1-family units 672 675 650 613 606 558 533 536 550 541r 530 509 491 15 Number for sale, end of period1 366 367 362 365 366 363 363 360 354 351r 345 339 334 Price (thousands of dollars)2 Median 16 Units sold 104.7 113.3 120.4 125.0 126.9 119.4 130.0 125.0 125.0 118.7r 111188..55 111122..99 112211..88 Average 17 Units sold 127.9 139.0 148.3 151.7 150.9 144.6 153.4 150.6 150.4 149.8' 145.3 143.4 157.5 EXISTING UNITS (1-family) 18 Number sold 3,530 3,594 3,439 3,520 3,400 3,400 3,330 3,300 3,330 3,330 3,500 3,170 3,050 Price of units sold (thousands of dollars)2 85.6 89.2 93.0 96.3 95.2 9966..33 9955..66 9955..66 9977..55 9988..33 9977..11 9944..44 92.9 20 Average 106.2 112.5 118.0 120.0 118.3 119.5 117.8 118.7 121.1 122.0 120.5 116.7 115.9 Value of new construction (millions of dollars) CONSTRUCTION 21 Total put in place 410,209 422,076 432,068 445,959 455,571 457,272 444,737 443,805 441,088 441,313 441,197 428,930 22 Private 319,641 327,102 333,514 338,078 343,118 347,366 338,780 333,992 329,556 333,207 325,434 319,574 2 2 3 4 R N e o s n i r d e e s n i t d i e al n tial, total 1 1 9 2 4 4 , , 6 9 5 8 6 5 1 1 9 2 8 9 , , 1 0 0 0 1 1 1 1 9 3 6 6 , , 5 9 5 6 1 3 2 1 0 3 0 7 , , 1 9 4 2 9 9 2 1 0 4 3 0 , , 0 1 1 0 3 5 2 1 0 4 6 0 , , 8 4 6 9 8 8 2 1 0 3 0 8 , , 2 5 3 4 4 6 1 13 9 7 6 , , 9 0 3 5 7 5 1 14 8 0 9 , , 0 4 9 6 4 2 1 14 8 4 8 , , 6 5 6 4 2 5 1 1 8 3 5 9 , , 7 66 6 6 8 1 1 8 3 1 8 , , 1 3 9 7 9 5 Buildings 25 Industrial 13,707 14,931 18,506 19,680 21,072 21,086 21,039 20,847 20,405 23,680 20,315 19,990 26 Commercial 55,448 58,104 59,389 57,376 58,748 57,210 55,765 54,698 56,581 57,117 55,585 53,972 27 Other. 15,464 17,278 17,848 17,706 16,964 17,646 18,227 18,379 19,272 19,762 19,864 20,275 28 Public utilities and other 40,366 38,688 41,220 43,167 43,321 44,556 43,515 44,013 43,836 44,103 43,902 44,138 29 Public 90,566 94,971 98,551 107,881 112,453 109,906 105,957 109,813 111,532 108,106 115,763 109,356 30 Military 4,327 3,579 3,520 3,838 3,886 5,099 5,057 5,459 5,868 5,066 5,047 5,105 31 Highway 26,958 30,140 29,502 31,901 37,018 32,374 29,714 30,658 30,311 28,775 31,865 31,140 32 Conservation and development... 5,519 4,726 4,969 5,192 5,559 4,996 4,979 5,504 3,958 4,501 4,790 3,355 33 Other 53,762 56,526 60,560 66,950 65,990 67,437 66,207 68,192 71,395 69,764 74,061 69,756 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 • February 1991 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 llleeevvveeelll IIIttteeemmm 1989 1990 1990 NNNooovvv... 11998899 11999900 111999999000 NNoovv.. NNoovv.. Dec. Mar. June Sept. July' Aug/ Sept. Oct. Nov. CONSUMER PRICES2 (1982-84=100) 1 All items 4.7 6.3 4.9 8.5 3.5 7.9 .4 .8 .8 .6 .3 133.8 2 5.6 5.6 5.5 11.4 2.1 3.7 .4 .3 .2 .4 .5 134.0 3 Energy items 4.8 19.0 3.9 14.8 -2.0 42.7 -.7 4.3 5.6 4.5 .5 110.9 4 All items less food and energy 4.4 5.3 4.7 7.5 3.9 5.7 .6 .5 .3 .3 .3 138.2 5 Commodities 2.9 3.1 3.4 7.8 .7 2.9 .3 .0 .4 .2 .0 125.4 6 Services 5.1 6.2 5.7 7.2 5.5 7.2 .7 .8 .3 .3 .4 145.5 PRODUCER PRICES (1982=100) 7 Finished goods 4.6 7.0 5.0 7.1 .3 11.7 .1 1.1 1.6 1.1 .5 122.9 8 Consumer foods 4.5 4.2 12.4 10.6 -3.8 .6 .3 .7 -.9 .9 .8 125.1 9 Consumer energy 7.7 38.4 -5.3 24.7 -14.3 137.4 .0 9.0 13.8 8.0 .1 89.4 10 Other consumer goods 4.4 3.9 4.2 3.5 5.4 2.2 -.2 .1 .6 .0 .6 130.8 11 Capital equipment 4.0 3.2 2.0 4.0 2.3 5.3 .3 .2 .8 -.2 .2 124.7 12 Intermediate materials3 2.9 5.6 -.4 2.5 -.4 13.4 -.1 1.3 1.9 1.6 .2 118.2 13 Excluding energy 1.7 1.8 -1.0 1.0 .7 4.0 .2 .2 .6 .4 .2 122.2 Crude materials 14 Foods 1.8 -1.2 19.2 9.1 -10.2 -7.9 .6 -.9 -1.8 1.1 -1.7 108.6 15 Energy 22.3 35.5 13.2 .5 -39.2 296.0 .4 25.0 12.4 18.7 -10.3 104.2 16 Other -1.0 .4 -15.3 4.0 13.2 8.7 .7 1.5 -.1 -1.7 -2.3 134.8 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 Account 1987 1988 1989 Q3 Q4 Ql Q2 GROSS NATIONAL PRODUCT 1 Total 4,515.6 4,873.7 5,200.8 5,238.6 5,289.3 5,375.4 5,443.3 By source 2 Personal consumption expenditures 3,009.4 3,238.2 3,450.1 3,484.3 3,518.5 3,588.1 3,622.7 3 Durable goods 423.4 457.5 474.6 487.1 471.2 492.1 478.4 4 Nondurable goods 1,001.3 1,060.0 1,130.0 1,137.3 1,148.8 1,174.7 1,179.0 5 Services 1,584.7 1,720.7 1.845.5 1,859.8 1,898.5 1,921.3 1.965.3 6 Gross private domestic investment 699.5 747.1 771.2 775.8 762.7 747.2 759.0 7 Fixed investment 671.2 720.8 742.9 746.9 737.7 758.9 745.6 8 Nonresidential 444.9 488.4 511.9 518.1 511.8 523.1 516.5 9 Structures 133.7 139.9 146.2 147.0 147.1 148.8 147.2 10 Producers' durable equipment 311.2 348.4 365.7 371.0 364.7 374.3 369.3 11 Residential structures 226.3 232.5 231.0 228.9 225.9 235.9 229.1 12 Change in business inventories 28.3 26.2 28.3 28.9 25.0 -11.8 13.4 13 Nonfarm 32.3 29.8 23.3 26.2 24.1 -17.0 13.0 14 Net exports of goods and services -114.7 -74.1 -46.1 -49.3 -35.3 -30.0 -24.9 15 Exports 449.6 552.0 626.2 623.7 642.8 661.3 659.7 16 Imports 564.3 626.1 672.3 673.0 678.1 691.3 684.6 17 Government purchases of goods and services .. 921.4 962.5 1.025.6 1,027.8 1,043.3 1,070.1 1.086.4 18 Federal 381.3 380.3 400.0 399.2 399.9 410.6 421.9 19 State and local 540.2 582.3 625.6 628.6 643.4 659.6 664.6 By major type of product 20 Final sales, total 4.487.3 4.847.5 5,172.5 5,209.7 5,264.3 5,387.2 5,429.9 21 Goods 1.788.4 1,935.1 2,072.7 2.090.2 2,085.9 2,111.0 2,146.6 22 Durable 780.5 860.2 906.7 922.1 907.4 919.9 930.1 23 Nondurable 1,007.9 1,074.9 1,166.1 1,168.1 1,178.6 1.191.2 1,216.4 24 Services 2,292.4 2.488.6 2,671.2 2.693.3 2,747.5 2.791.3 2,834.2 25 Structures 434.9 450.0 456.9 455.0 455.9 473.0 462.5 26 Change in business inventories 28.3 26.2 28.3 28.9 25.0 -11.8 13.4 27 Durable goods 22.9 19.9 11.9 6.6 13.2 -21.6 .0 28 Nondurable goods 5.4 6.4 16.4 22.2 11.9 9.8 13.4 MEMO 3,845.3 4,016.9 4,117.7 4,129.7 4,133.2 4,150.6 4,155.1 29 Total GNP in 1982 dollars NATIONAL INCOME 3.660.3 3,984.9 4,223.3 4.232.1 4,267.1 4.350.3 4,411.3 30 Total 2.686.4 2,905.1 3,079.0 3.095.2 3.128.6 3.180.4 3.232.5 31 Compensation of employees 2,249.7 2,431.1 2,573.2 2.586.6 2.612.7 2,651.6 2,696.3 32 Wages and salaries 419.4 446.6 476.6 479.9 486.7 497.1 505.7 33 Government and government enterprises .. 1,830.3 1,984.5 2,096.6 2.106.7 2,126.0 2.154.5 2.190.6 34 Other 436.6 474.0 505.8 508.6 515.9 528.8 536.1 35 Supplement to wages and salaries 227.2 248.5 263.9 265.1 268.4 276.0 279.7 36 Employer contributions for social insurance 209.4 225.5 241.9 243.5 247.5 252.8 256.4 37 Other labor income 38 Proprietors'income1 323.4 354.2 379.3 368.1 381.7 404.0 401.7 39 Business and professional 280.6 310.5 330.7 329.5 336.0 346.6 350.8 40 Farm1 42.8 43.7 48.6 38.7 45.7 57.4 51.0 41 Rental income of persons2 13.7 16.3 8.2 5.8 4.1 5.5 4.3 42 Corporate profits1 308.3 337.6 311.6 306.7 290.9 296.8 306.6 43 Profits before tax3 275.3 316.7 307.7 291.4 289.8 296.9 299.3 44 Inventory valuation adjustment -19.4 -27.0 -21.7 -6.1 -14.5 -11.4 -.5 45 Capital consumption adjustment 52.4 47.8 25.5 21.4 15.6 11.3 7.7 46 Net interest 328.6 371.8 445.1 456.2 461.7 463.6 466.2 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 • February 1991 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 11998899 Q3 Q4 Ql Q2 Q3' PERSONAL INCOME AND SAVING 1 Total personal income 3,766.4 4,070.8 4,384.3 4,402.8 4,469.2 4,562.8 4,622.2 4,678.5 2 Wage and salary disbursements 2,249.7 2,431.1 2,573.2 2,586.6 2,612.7 2,651.6 2,696.3 2,734.2 Commodity-producing industries 649.9 696.4 720.6 722.3 721.4 724.6 731.1 735.3 4 Manufacturing 490.3 524.0 541.8 543.2 540.9 541.2 548.1 551.8 5 Distributive industries 531.8 572.0 604.7 607.1 614.6 627.0 637.3 642.7 6 Service industries 648.5 716.2 771.4 777.4 790.0 802.9 822.2 844.9 7 Government and government enterprises 419.4 446.6 476.6 479.9 486.7 497.1 505.7 511.3 8 Other labor income 209.4 225.5 241.9 243.5 247.5 252.8 256.4 260.0 9 Proprietors' income1 323.4 354.2 379.3 368.1 381.7 404.0 401.7 397.9 10 Business and professional1 280.6 310.5 330.7 329.5 336.0 346.6 350.8 355.6 11 Farm1 42.8 43.7 48.6 38.7 45.7 57.4 51.0 42.4 1? Rental income of persons 13.7 16.3 8.2 5.8 4.1 5.5 4.3 8.4 N Dividends 91.8 102.2 114.4 115.7 118.2 120.5 122.9 124.9 14 Personal interest income 501.3 547.9 643.2 655.2 664.9 670.5 678.0 685.3 15 Transfer payments 549.9 587.7 636.9 641.8 655.9 680.9 686.7 696.4 16 Old-age survivors, disability, and health insurance benefits ... 282.9 300.5 325.3 328.3 334.1 347.2 347.6 351.1 17 LESS: Personal contributions for social insurance 172.9 194.1 212.8 214.0 215.8 222.9 224.1 228.6 18 EQUALS: Personal income 3,766.4 4,070.8 4,384.3 4,402.8 4,469.2 4,562.8 4,622.2 4,678.5 19 LESS: Personal tax and nontax payments 571.6 591.6 658.8 659.5 669.6 675.1 696.5 709.5 20 EQUALS: Disposable personal income 3,194.7 3,479.2 3,725.5 3,743.4 3,799.6 3,887.7 3,925.7 3,969.1 21 LESS: Personal outlays 3,102.2 3,333.6 3,553.7 3,588.8 3,625.5 3,696.4 3,730.6 3,802.6 22 EQUALS: Personal saving 92.5 145.6 171.8 154.5 174.1 191.3 195.1 166.5 MEMO Per capita (1982 dollars) 73 Gross national product 15,759.4 16,302.4 16,550.2 16,578.5 16,546.0 1166,,557755..99 1166,,555544..22 1166,,556600..88 74 Personal consumption expenditures 10,310.7 10,578.3 10,678.5 10,739.9 10,688.2 10,692.1 10,672.5 10,710.1 25 Disposable personal income 10,946.0 11,368.0 11,531.0 11,538.0 11,541.0 11,586.0 11,564.0 11,511.0 26 Saving rate (percent) 2.9 4.2 4.6 4.1 4.6 4.9 5.0 4.2 GROSS SAVING 27 Gross saving 555.5 656.1 691.5 692.4 674.8 664.8 679.3 665.9 78 Gross private saving 662.6 751.3 779.3 776.0 786.4 795.0 806.7 772.2 79 Personal saving 92.5 145.6 171.8 154.5 174.1 191.3 195.1 166.5 30 Undistributed corporate profits 83.2 91.4 53.0 53.9 39.8 36.7 40.5 26.5 31 Corporate inventory valuation adjustment -19.4 -27.0 -21.7 -6.1 -14.5 -11.4 -.5 -19.8 Capital consumption allowances 1? 303.2 322.1 346.4 351.6 335566..55 335566..77 335599..77 336655..55 33 Noncorporate 183.8 192.2 208.0 215.9 216.0 210.3 211.4 213.8 34 Government surplus, or deficit (-), national income and product accounts -107.1 -95.3 -87.8 -83.6 -111.6 --113300..22 --112277..33 --110066..44 35 Federal -158.2 -141.7 -134.3 -131.7 -150.1 -168.3 -166.0 -145.7 36 State and local 51.0 46.5 46.4 48.1 38.5 38.1 38.6 39.3 37 Gross investment 544.9 627.8 674.4 676.1 671.8 665.6 676.1 661.0 38 Gross private domestic 699.5 747.1 771.2 775.8 762.7 747.2 759.0 759.7 39 Net foreign -154.6 -119.2 -96.8 -99.7 -90.9 -81.6 -82.9 -98.7 40 Statistical discrepancy -10.6 -28.2 -17.0 -16.2 -3.0 .7 -3.2 -4.9 1. With inventory valuation and capital consumption adjustments. SOURCE. Survey of Current Business (Department of Commerce). 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A55 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1990 Item credits or debits 1987 1988 1989 Q3 Q4 Ql Q2' Q3" -162,315 -128,862 -110,035 -27,591 -26,692 -21,668 -22,485 -25,585 Not seasonally adjusted -31,620 -27,926 -17,922 -20,987 -29,989 Merchandise trade balance2 -159,500 -i 26,986 -ii4,864 -29,803 -28,746 -26,283 -23,102 -29,752 Merchandise exports 250,266 320,337 360,465 89,349 91,738 96,262 96,758 96,159 Merchandise imports -409,766 -447,323 -475,329 -119,152 -120,484 -122,545 -119,860 -125,911 Military transactions, net -3,530 -5,452 -6,319 -1,114 -1,776 -1,287 -1,382 -1,648 Investment income, net 5,326 1,610 -913 17 561 1,995 -999 2,455 Other service transactions, net 9,964 16,971 26,783 6,839 7,900 7,292 7,364 7,465 Remittances, pensions, and other transfers -4,299 -4,261 -3,758 -909 -889 -983 -865 -1,078 U.S. government grants -10,276 -10,744 -10,963 -2,621 -3,742 -2,402 -3,501 -3,027 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) 997 2,969 1,185 574 -47 -659 -379 12 Change in U.S. official reserve assets (increase, -). 9,149 -3,912 -25,293 -5,996 -3,202 -3,177 371 1,739 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -509 127 -535 -211 -204 -247 -216 363 15 Reserve position in International Monetary Fund. 2,070 1,025 471 337 -23 234 493 8 16 Foreign currencies 7,588 -5,064 -25,229 -6,122 -2,975 -3,164 94 1,368 17 Change in U.S. private assets abroad (increase, -). -73,092 -83,232 -102,953 -38,654 -45,496 36,713 -31,284 -27,811 18 Bank-reported claims3 -42,119 -56,322 -50,684 -21,269 -32,658 52,353 -13,639 -7,603 19 Nonbank-reported claims 5,324 -2,847 1,391 1,877 47 1,202 -1,550 20 U.S. purchase of foreign securities, net -5,251 -7,846 -21,938 -9,623 -4,109 -7,496 -11,247 -913 21 U.S. direct investments abroad, net -31,046 -16,217 -31,722 -9,639 -8,776 -9,346 -4,848 -19,295 22 Change in foreign official assets in United States (increase, +) 45,210 39,515 8,823 13,003 -7,016 -8,203 5,541 13,642 23 U.S. Treasury securities 43,238 41,741 333 12,771 -7,342 -5,897 2,442 12,008 24 Other U.S. government obligations 1,564 1,309 1,383 190 569 -521 346 134 25 Other U.S. government liabilities4 -2,503 -710 332 -350 412 -381 1,089 234 26 Other U.S. liabilities reported by U.S. banks3 3,918 -319 4,940 -251 -820 -1,278 1,918 1,539 27 Other foreign official assets -1,007 -2,506 1,835 643 165 -126 -254 -273 28 Change in foreign private assets in United States (increase, 2 3 9 0 U U . . + S S . ) . b n a o n n k b - a r n e k p - o r r e t p ed o rt l e ia d b i l l i i a t b ie i s li 5 t t ies 1 8 7 9 2 3 , , , 0 8 2 2 6 6 6 3 0 1 7 8 0 6 1 , , , 2 6 9 3 6 2 5 4 6 20 61 5 2 , , , 1 8 8 9 6 2 9 7 9 - 6 2 2 7 1 , , , 1 8 1 7 4 3 5 5 3 7 36 6 1 , , , 6 3 7 7 3 3 4 6 2 - -3 2 2 4 , , 2 7 2 6 8 9 4 6 0 1 4 9 1 , , , 8 9 3 9 5 1 7 4 7 ' 3 3 • 2 8 ' , , 2 8 4 8 2 5 8 9 3 31 Foreign private purchases of U.S. Treasury securities, net -7,643 20,239 29,951 12,618 5,671 -835 3,614 32 Foreign purchases of other U.S. securities, net 42,120 26,353 39,568 10,470 10,793 2,486 2,890 -1,543 33 Foreign direct investments in United States, net 46,894 58,435 72,244 12,375 21,466 5,537 7,236 7,631 34 Allocation of SDRs 0 0 0 0 0 0 0 0 35 Discrepancy 6,790 -8,404 22,443 -2,469 6,117 21,780 28,711 -435 36 Owing to seasonal adjustments -4,953 3,560 2,804 -5,303 37 Statistical discrepancy in recorded data before seasonal adjustment 6,790 22,443 2,484 2,558 18,976 29,699 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) 9,149 -3,912 -25,293 -5,996 -3,202 -3,177 371 1,739 39 Foreign official assets in United States (increase, +) excluding line 25 47,713 40,225 8,491 13,353 -7,428 -7,822 4,452 13,408 40 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22 above) -9,956 -2,996 10,713 4,532 -1,379 2,953 208 -1,251 1. Seasonal factors are not calculated for lines 6, 10, 12-16, 18-20, 22-34, and 4. Primarily associated with military sales contracts and other transactions 38-41. arranged with or through foreign official agencies. 2. Data are on an international accounts (IA) basis. Differs from the Census 5. Consists of investments in U.S. corporate stocks and in debt securities of basis data, shown in table 3.11, for reasons of coverage and timing. Military private corporations and state and local governments. exports are excluded from merchandise data and are included in line 6. NOTE. Data are from Bureau of Economic Analysis, Survey of Current Business 3. Reporting banks include all kinds of depository institutions besides commer- (Department of Commerce). cial banks, as well as some brokers and dealers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • February 1991 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data are seasonally adjusted. 1990 IItteemm 11998877 11998888 11998899 Apr. May June July Aug. Sept/ Oct." 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments, f.a.s. value 254,073 322,427 363,812 32,058 32,774 34,221 32,125 32,549 32,010 34,774 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 2 Customs value 406,241 440,952 473,211 39,364 40,543 39,561 41,244 42,283 41,337 46,385 Trade balance 3 Customs value -152,169 -118,526 -109,399 -7,306 -7,770 -5,340 -9,119 -9,734 -9,326 -11,611 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 1990 TTyyppee 11998877 11998888 11998899 May June July Aug. Sept. Oct. Nov.p 1 Total 45,798 47,802 74,609 77,028 77,298 77,906 78,909 80,024 82,852 83,059 2 Gold stock, including Exchange Stabilization Fund1 11,078 11,057 11,059 11,065 11,065 11,064 11,065 11,063 11,060 11,059 3 Special drawing rights2'3 10,283 9,637 9,951 10,396 10,490 10,699 10,780 10,666 10,876 11,059 4 Reserve position in International Monetary Fund 11,349 9,745 9,048 8,764 8,449 8,686 8,890 8,881 9,066 8,871 5 Foreign currencies4 13,088 17,363 44,551 46,803 47,294 47,457 48,174 49,414 51,850 52,070 1. Gold held under earmark at Federal Reserve Banks for foreign and interna- in the IMF also are valued on this basis beginning July 1974. tional accounts is not included in the gold stock of the United States; see table 3. Includes allocations by the International Monetary Fund of SDRs as follows: 3.13. Gold stock is valued at $42.22 per fine troy ounce. $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1, 2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based 1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093 on a weighted average of exchange rates for the currencies of member countries. million on Jan. 1, 1981; plus transactions in SDRs. From July 1974 through December 1980, 16 currencies were used; from January 4. Valued at current market exchange rates. 1981, 5 currencies have been used. The U.S. SDR holdings and reserve position 3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS1 Millions of dollars, end of period 1990 AAsssseettss 11998877 11998888 11998899 p May June July Aug. Sept. Oct. Nov. 1 Deposits 244 347 589 309 368 279 337 360 297 264 Assets held in custody 2 U.S. Treasury securities 195,126 232,547 224,911 253,691 255,651 256,585 261,051 261,321 266,749 272,399 3 Earmarked gold3 13,919 13,636 13,456 13,460 13,433 13,422 13,412 13,419 13,415 13,389 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 at face value. 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 1990 AAsssseett aaccccoouunntt 11998877 11998888 11998899 Apr. May June July Aug. Sept. Oct. All foreign countries 1 Total, all currencies 518,618 505,595 545,366 535,886 541,439 524,010 531,418 551,346' 546,140 552,510 7 Claims on United States 138,034 169,111 198,835 177,104 182,224 179,258 174,583 178,236 182,555 177,539 Parent bank 105,845 129,856 157,092 133,573 140,751 138,384 133,682 137,558 140,865 135,536 4 Other banks in United States 16,416 14,918 17,042 17,965 15,647 15,166 15,239 14,500 14,157 13,145 5 Nonbanks 15,773 24,337 24,701 25,566 25,826 25,708 25,662 26,178 27,533 28,858 6 Claims on foreigners 342,520 299,728 300,575 307,470 306,058 293,627' 304,674' 313,831' 311,254 319,318 7 Other branches of parent bank 122,155 107,179 113,810 118,835 116,640 108,464 115,353 121,705' 123,359 129,570 8 Banks 108,859 96,932 90,703 90,812 90,422 85,780 85,911 88,768' 83,162 81,883 9 Public borrowers 21,832 17,163 16,456 16,217 16,172 16,220' 16,264' 16,157' 16,379 16,335 10 Nonbank foreigners 89,674 78,454 79,606 81,606 82,824 83,163 87,146 87,201 88,354 91,530 11 Other assets 38,064 36,756 45,956 51,312 53,157 51,125' 52,161' 59,279' 52,331 55,653 12 Total payable in U.S. dollars 350,107 357,573 382,717 360,224 362,991r 350,110' 346,335' 357,970' 360,195 362,409 n Claims on United States 132,023 163,456 191,184 169,996 173,887 171,551 166,294 169,714 173,978 168,956 14 Parent bank 103,251 126,929 152,294 129,162 135,211 133,167 128,066 131,994 135,068 129,850 15 Other banks in United States 14,657 14,167 16,386 17,209 14,818 14,575 14,375 13,513 13,416 12,441 16 Nonbanks 14,115 22,360 22,504 23,625 23,858 23,809 23,853 24,207 25,494 26,665 17 Claims on foreigners 202,428 177,685 169,690 168,419 167,493' 158,452' 157,910' 163,152' 163,799' 168,345 18 Other branches of parent bank 88,284 80,736 82,949 84,930 83,381 76,410 79,241 82,564' 84,378 90,462 19 Banks 63,707 54,884 48,396 43,814 44,449 42,918 38,815 40,733' 39,419' 37,267 70 Public borrowers 14,730 12,131 10,961 11,191 10,912 10,956 10,652 10,939' 11,166 11,201 21 Nonbank foreigners 35,707 29,934 27,384 28,484 28,751r 28,168' 29,202' 28,916' 28,836 29,415 22 Other assets 15,656 16,432 21,843 21,809 21,611 20,107 22,131 25,104' 22,418' 25,108 United Kingdom 23 Total, all currencies 158,695 156,835 161,947 173,127 177,947 167,885 175,254 184,933 178,484 184,660 74 Claims on United States 32,518 40,089 39,212 42,366 43,247 39,904 40,418 40,092 42,568 39,862 75 Parent bank 27,350 34,243 35,847 37,572 39,089 35,924 36,564 36,140 39,042 35,904 76 Other banks in United States 1,259 1,123 1,058 1,262 747 730 894 1,037 717 694 77 Nonbanks 3,909 4,723 2,307 3,532 3,411 3,250 2,960 2,915 2,809 3,264 78 Claims on foreigners 115,700 106,388 107,657 111,175 114,800 108,080 114,254 118,423 114,869 122,203 79 Other branches of parent bank 39,903 35,625 37,728 41,613 43,358 38,068 41,181 43,581 44,408 47,390 30 Banks 36,735 36,765 36,159 35,224 35,730 34,194 35,085 37,623 34,094 35,480 31 Public borrowers 4,752 4,019 3,293 3,980 3,943 3,740 3,619 3,757 3,639 3,521 32 Nonbank foreigners 34,310 29,979 30,477 30,358 31,769 32,078 34,369 33,462 32,728 35,812 33 Other assets 10,477 10,358 15,078 19,586 19,900 19,901 20,582 26,418 21,047 22,595 34 Total payable in U.S. dollars 100,574 103,503 103,427 107,483 110,186 100,887 103,047 107,192 107,117 110,231 35 Claims on United States 30,439 38,012 36,404 39,091 39,374 36,158 36,230 35,979 37,991 35,429 36 Parent bank 26,304 33,252 34,329 35,663 36,712 33,509 33,716 33,585 36,024 33,145 37 Other banks in United States 1,044 964 843 1,041 521 552 681 721 460 419 38 Nonbanks 3,091 3,796 1,232 2,387 2,141 2,097 1,833 1,673 1,507 1,865 39 Claims on foreigners 64,560 60,472 59,062 60,165 63,025 57,802 58,278 60,390 59,817' 63,720 40 Other branches of parent bank 28,635 28,474 29,872 32,885 34,441 30,050 31,220 32,976 33,990 37,069 41 Banks 19,188 18,494 16,579 14,141 14,635 14,625 13,621 14,570 13,212' 13,571 47 Public borrowers 3,313 2,840 2,371 3,131 3,114 2,942 2,839 2,896 2,866 2,790 43 Nonbank foreigners 13,424 10,664 10,240 10,008 10,835 10,185 10,598 9,948 9,749 10,290 44 Other assets 5,575 5,019 7,961 8,227 7,787 6,927 8,539 10,823 9,309' 11,082 Bahamas and Caymans 45 Total, all currencies 160,321 170,639 176,006 150,767 154,851 154,354 145,813 150,695 153,234 153,497 46 Claims on United States 85,318 105,320 124,205 102,184 105,617 107,244 99,918 103,521 106,574 106,977 47 Parent bank 60,048 73,409 87,882 65,084 69,807 72,115 64,748 68,507 70,145 70,845 48 Other banks in United States 14,277 13,145 15,071 15,902 14,079 13,603 13,412 12,625 12,539 11,605 49 10,993 18,766 21,252 21,198 21,731 21,526 21,758 22,389 23,890 24,527 50 Claims on foreigners 70,162 58,393 44,168 41,467 42,147 39,812 38,393 39,595 39,573 38,062 51 Other branches of parent bank 21,277 17,954 11,309 13,306 12,917 11,906 11,785 12,031 11,638 12,152 5? 33,751 28,268 22,611 18,499 19,947 18,492 16,761 17,543 18,076 15,994 53 Public borrowers 7,428 5,830 5,217 4,490 4,350 4,393 4,307 4,554 4,818 4,876 54 Nonbank foreigners 7,706 6,341 5,031 5,172 4,933 5,021 5,540 5,467 5,041 5,040 55 Other assets 4,841 6,926 7,633 7,116 7,087 7,298 7,502 7,579 7,087 8,458 56 Total payable in U.S. dollars 151,434 163,518 170,780 145,994 149,467 149,943 140,966 146,103 149,233 148,862 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 "shefl" branches applicable to all reporting branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • February 1991 3.14—Continued 1990 Apr. May June July Aug. Sept. Oct. All foreign countries 57 Total, all currencies 518,618 505,595 545,366 535,886 541,439 524,010 531,418 551,346' 546,140 552,510 58 Negotiable CDs 30,929 28,511 23,500 24,113 25,452 23,504 21,805 22,917 21,977 22,091 59 To United States 161,390 185,577 197,239 168,669 169,791 169,769 163,275 167,410 172,747 167,569 60 Parent bank 87,606 114,720 138,412 109,642 109,831 113,151 105,401 109,818 117,217 113,064 61 Other banks in United States 20,355 14,737 11,704 11,782 10,272 9,092 9,454 10,264 8,976 7,984 62 Nonbanks 53,429 56,120 47,123 47,245 49,688 47,526 48,420 47,328 46,554 46,521 63 To foreigners 304,803 270,923 296,850 313,446 315,058 299,951 314,503 321,365' 317,339 327,139 64 Other branches of parent bank 124,601 111,267 119,591 120,405 120,722 113,653 119,476 124,393' 125,517 131,173 65 Banks 87,274 72,842 76,452 77,875 78,681 73,896 78,19C 79,485' 75,353' 75,687 66 Official institutions 19,564 15,183 16,750 20,683 19,710 17,637 19,468' 17,801' 17,475' 18,436 67 Nonbank foreigners 73,364 71,631 84,057 94,483 95,945 94,765 97,369 99,686' 98,994' 101,843 68 Other liabilities 21,496 20,584 27,777 29,658 31,138 30,786 31,835 39,654' 34,077 35,711 69 Total payable in U.S. dollars 361,438 367,483 396,613 368,626 369,505 358,681 355,782 365,928' 364,940 363,931 70 Negotiable CDs 26,768 24,045 19,619 19,601 20,579 18,928 16,519 17,588 17,219 17,024 71 To United States 148,442 173,190 187,286 157,579 157,851 158,173 150,943 155,171 158,892 153,344 72 Parent bank 81,783 107,150 132,563 103,252 103,389 106,818 98,928 103,355 109,323 104,617 73 Other banks in United States 18,951 13,468 10,519 10,415 8,855 7,741 7,884 8,791 7,501 6,486 74 Nonbanks 47,708 52,572 44,204 43,912 45,607 43,614 44,131 43,025 42,068 42,241 75 To foreigners 177,711 160,766 176,460 178,035 177,888 168,642 174,616 177,484' 175,860 178,969 76 Other branches of parent bank 90,469 84,021 87,636 84,090 84,415 78,646 81,332 84,157' 85,438 89,763 77 Banks 35,065 28,493 30,537 29,207 28,265 27,434 28,045 28,945' 26,576 23,564 78 Official institutions 12,409 8,224 9,873 11,909 11,480 9,066 10,613 9,710' 9,346 9,689 79 Nonbank foreigners 39,768 40,028 48,414 52,829 53,728 53,496 54,626 54,672' 54,500 55,953 80 Other liabilities 8,517 9,482 13,248 13,411 13,187 12,938 13,704 15,685' 12,969 14,594 United Kingdom 81 Total, all currencies 158,695 156,835 161,947 173,127 177,947 167,885 175,254 184,933 178,484 184,660 82 Negotiable CDs 26,988 24,528 20,056 20,535 21,846 19,672 17,795 18,703 17,542 17,557 83 To United States 23,470 36,784 36,036 33,931 33,755 32,291 32,320 33,365 35,483 32,171 84 Parent bank 13,223 27,849 29,726 23,339 23,179 23,158 21,952 23,399 25,461 22,013 85 Other banks in United States 1,536 2,037 1,256 1,841 1,847 1,615 1,626 1,535 1,765 1,430 86 Nonbanks 8,711 6,898 5,054 8,751 8,729 7,518 8,742 8,431 8,257 8,728 87 To foreigners 98,689 86,026 92,307 103,362 106,138 99,279 107,533 109,372 106,496 114,959 88 Other branches of parent bank 33,078 26,812 27,397 28,581 29,193 26,506 28,944 28,967 30,487 32,357 89 Banks 34,290 30,609 29,780 31,026 31,580 28,575 32,420 34,647 30,113 33,870 90 Official institutions 11,015 7,873 8,551 10,829 11,409 10,263 11,314 9,902 9,578 10,788 91 Nonbank foreigners 20,306 20,732 26,579 32,926 33,956 33,935 34,855 35,856 36,318 37,944 92 Other liabilities 9,548 9,497 13,548 15,299 16,208 16,643 17,606 23,493 18,963 19,973 93 Total payable in U.S. dollars 102,550 105,907 108,178 109,708 110,595 101,530 104,372 108,532 107,216 108,064 94 Negotiable CDs 24,926 22,063 18,143 17,936 19,012 17,233 14,831 15,758 15,502 15,237 95 To United States 17,752 32,588 33,056 30,386 29,666 28,160 27,967 28,779 30,368 26,895 96 Parent bank 12,026 26,404 28,812 22,446 22,339 22,190 21,208 22,423 23,963 20,334 97 Other banks in United States 1,308 1,752 1,065 1,553 1,456 1,325 1,175 1,228 1,471 1,035 98 Nonbanks 4,418 4,432 3,179 6,387 5,871 4,645 5,584 5,128 4,934 5,526 99 To foreigners 55,919 47,083 50,517 54,371 55,163 49,672 54,591 55,252 54,679 57,639 100 Other branches of parent bank 22,334 18,561 18,384 18,799 18,589 16,199 17,408 17,347 18,560 20,797 101 Banks 15,580 13,407 12,244 11,233 11,007 9,911 11,251 13,042 11,116 10,465 102 Official institutions 7,530 4,348 5,454 6,703 7,264 5,305 6,515 5,463 5,324 5,751 103 Nonbank foreigners 10,475 10,767 14,435 17,636 18,303 18,257 19,417 19,400 19,679 20,626 104 Other liabilities 3,953 4,173 6,462 7,015 6,754 6,465 6,983 8,743 6,667 8,293 Bahamas and Caymans 105 Total, all currencies 160,321 170,639 176,006 150,767 154,851 154,354 145,813 150,695 153,234 153,497 106 Negotiable CDs 885 953 678 524 528 535 548 553 553 560 107 To United States 113,950 122,332 124,859 101,024 103,655 103,592 95,904 100,622 104,211 103,545 108 Parent bank 53,239 62,894 75,188 55,311 57,136 58,880 51,415 56,092 62,276 62,474 109 Other banks in United States 17,224 11,494 8,883 8,544 6,991 5,984 6,228 7,039 5,398 4,959 110 Nonbanks 43,487 47,944 40,788 37,169 39,528 38,728 38,261 37,491 36,537 36,112 111 To foreigners 43,815 45,161 47,382 46,741 48,410 47,613 47,010 46,922 46,237 46,867 112 Other branches of parent bank 19,185 23,686 23,414 22,446 25,535 24,184 24,560 24,965 24,781 25,864 113 Banks 10,769 8,336 8,823 8,617 8,154 8,969 8,120 7,469 7,519 6,794 114 Official institutions 1,504 1,074 1,097 1,247 962 960 999 943 731 703 115 Nonbank foreigners 12,357 12,065 14,048 14,431 13,759 13,500 13,331 13,545 13,206 13,506 116 Other liabilities 1,671 2,193 3,087 2,478 2,258 2,614 2,351 2,598 2,233 2,525 117 Total payable in U.S. dollars 152,927 162,950 171,250 146,259 149,707 149,680 140,377 145,670 148,589 147,749 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 1990 IItteemm 11998888 11998899 Apr. May June July Aug. Sept/ Oct.p 1 Total1 304,132 312,457 307,820 308,397 309,541 312,309 321,418r 323,848 327,724 By type 2 Liabilities reported by banks in the United States 31,519 36,481 36,642 36,747 37,471 38,604 40,501r 39,857 42,424 3 U.S. Treasury bills and certificates3 103,722 76,985 69,454 72,322 71,804 72,690 72,803 72,472 72,457 U.S. Treasury bonds and notes 4 Marketable 152,429 179,264 179,476 177,092 178,016 178,740 185,534 189,333 190,555 5 Nonmarketable 523 568 3,596 3,620 3,644 3,668 3,692 3,717 3,741 6 U.S. securities other than U.S. Treasury securities 15,939 19,159 18,652 18,616 18,606 18,607 18,888 18,469 18,547 By area 7 Western Europe1 123,752 133,417 141,102 142,405 146,928 149,454 152,777 156,432 161,620 8 Canada 9,513 9,482 7,809 6,550 6,961 8,415 11,083 10,171 8,903 9 Latin America and Caribbean 10,030 8,740 9,066 9,147 10,200 9,972 11, W 11,421 11,203 10 Asia 151,887 153,338 142,899 141,490 136,325 135,705 137,008 136,383 137,063 11 Africa 1,403 1,030 895 1,074 946 917 1,697 1,383 1,230 12 Other countries6 7,548 6,453 6,047 7,731 8,183 7,848 7,665 8,058 7,707 1. Includes the Bank for International Settlements. bonds and notes payable in foreign currencies; zero coupon bonds are included at 2. Principally demand deposits, time deposits, bankers acceptances, commer- current value. cial paper, negotiable time certificates of deposit, and borrowings under repur- 5. Debt securities of U.S. government corporations and federally sponsored chase agreements. agencies, and U.S. corporate stocks and bonds. 3. Includes nonmarketable certificates of indebtedness (including those payable 6. Includes countries in Oceania and Eastern Europe. in foreign currencies through 1974) and Treasury bills issued to official institutions NOTE. Based on data and on data reported to the Treasury Department by of foreign countries. banks (including Federal Reserve Banks) and securities dealers in the United 4. Excludes notes issued to foreign official nonreserve agencies. Includes States and on the 1984 benchmark survey of foreign portfolio investment in the United States. 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 1990 IItteemm 11998866 11998877 11998888 Dec. Mar. June Sept. 1 Banks' own liabilities 29,702 55,438 74,980 67,805 63,105 68,086 69,485 2 Banks' own claims 26,180 51,271 68,983 65,127 60,999 66,652 67,804 3 Deposits 14,129 18,861 25,100 20,491 21,456 20,256 23,734 4 Other claims 12,052 32,410 43,884 44,636 39,543 46,396 44,070 5 Claims of banks' domestic customers2 2,507 551 364 3,507 1,190 1,501 2,519 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 • February 1991 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 1990 HHoollddeerr aanndd ttyyppee ooff lliiaabbiilliittyy 11998877 11998888 11998899 Apr. May June July Aug/ Sept/ Oct." 1 All foreigners 618,874 685,339 736,627 702,923 715,613 707,464 719,673 737,811 741,610 742,340 2 Banks' own liabilities 470,070 514,532 577,247 547,193 552,438 544,1% 554,328 570,197 571,786 574,099 3 Demand deposits 22,383 21,863 22,080 21,096 20,578 20,365 19,723 20,708 22,259 20,699 4 Time deposits 148,374 152,164 168,735 148,984 151,063 151,525 154,590 156,678 158,913 158,635 5 Other. 51,677 51,366 67,650 65,990 65,367 64,646 66,157 74,268 65,908 71,606 6 Own foreign offices4 247,635 289,138 318,782 311,123 315,430 307,660 313,859 318,542 324,706 323,160 7 Banks' custody liabilities5 148,804 170,807 159,380 155,730 163,175 163,267 165,344 167,614 169,823 168,241 8 U.S. Treasury bills and certificates6 101,743 115,056 91,100 83,649 8888,,990088 9900,,008822 9911,,888833 9933,,003388 9911,,446644 9944,,997711 9 Other negotiable and readily transferable instruments7 16,776 16,426 19,526 18,132 18,531 17,865 17,599 16,983 17,198 17,751 10 Other 30,285 39,325 48,754 53,948 55,737 55,320 55,862 57,593 61,162 55,519 11 Nonmonetary international and regional organizations 4,464 3,224 4,772 5,727 4,558 5,018 4,112 4,290 5,206 4,507 12 Banks' own liabilities 2,702 2,527 3,156 3,781 2,913 3,619 2,790 2,330 3,894 3,472 13 Demand deposits 124 71 % 52 28 29 46 244 142 438 14 Time deposits 1,538 1,183 927 2,025 773 1,416 1,038 1,303 1,165 885 IS Other3 1,040 1,272 2,133 1,704 2,112 2,174 1,707 783 2,588 2,149 16 Banks' custody liabilities5 1,761 698 1,616 1,947 1,645 1,399 1,322 1,959 1,311 1,034 17 U.S. Treasury bills and certificates6 265 57 197 190 174 147 148 11,,009955 479 248 18 Other negotiable and readily transferable instruments7 1,497 641 1,417 1,740 11,,446633 1,253 1,159 819 817 782 19 Other 0 0 2 17 88 0 15 45 15 5 20 Official institutions9 120,667 135,241 113,466 106,0% 109,069 109,275 111,294 113,304 112,328 114,881 21 Banks' own liabilities 28,703 27,109 31,092 33,864 33,395 33,378 34,858 36,465 35,892 37,637 22 Demand deposits 1,757 1,917 2,196 2,066 1,644 1,613 1,516 1,914 2,498 2,124 23 Time deposits2 12,843 9,767 10,495 10,939 11,178 10,179 11,510 11,120 11,129 11,212 24 Other3. 14,103 15,425 18,401 20,859 20,572 21,586 21,831 23,431 22,265 24,301 25 Banks' custody liabilities5 91,965 108,132 82,373 72,231 75,674 75,896 76,437 76,839 76,436 77,244 26 U.S. Treasury bills and certificates6 88,829 103,722 76,985 69,454 7722,,332222 7711,,880044 7722,,669900 7722,,880033 7722,,447722 7722,,445577 27 Other negotiable and readily transferable instruments7 2,990 4,130 5,028 2,605 3,158 3,650 3,5% 3,685 3,676 4,361 28 Other 146 280 361 173 195 443 150 351 289 427 29 Banks10 '.... 414,280 459,523 514,721 492,708 503,137 496,903 507,154 524,485 529,414 522,627 30 Banks' own liabilities 371,665 409,501 454,206 426,048 432,438 424,810 433,739 449,069 450,940 449,986 31 Unaffiliated foreign banks 124,030 120,362 135,425 114,925 117,009 117,151 119,881 130,527 126,234 126,826 32 Demand deposits 10,898 9,948 10,325 9,864 9,673 9,503 9,224 9,7% 10,415 8,984 33 Time deposits 79,717 80,189 90,557 68,703 71,159 73,243 74,888 77,981 80,745 80,573 34 Other3 33,415 30,226 34,543 36,357 36,177 34,405 35,770 42,750 35,074 37,268 35 Own foreign offices4 247,635 289,138 318,782 311,123 315,430 307,660 313,859 318,542 324,706 323,160 36 Banks' custody liabilities5 42,615 50,022 60,514 66,660 70,699 72,093 73,415 75,416 78,474 72,641 37 U.S. Treasury bills and certificates6 9,134 7,602 9,367 9,374 1111,,557788 1133,,550022 1133,,996644 1133,,885555 1133,,000099 1133,,664466 38 Other negotiable and readily transferable instruments7 5,392 5,725 5,124 5,437 5,616 5,757 5,760 5,366 6,187 5,921 39 Other 28,089 36,694 46,023 51,850 53,504 52,833 53,690 56,195 59,278 53,074 40 Other foreigners 79,463 87,351 103,669 98,391 98,848 %,268 97,112 95,732 94,662 100,325 41 Banks' own liabilities 67,000 75,396 88,793 83,500 83,692 82,389 82,941 82,333 81,060 83,004 42 Demand deposits 9,604 9,928 9,463 9,114 9,232 9,220 8,937 8,755 9,205 9,153 43 Time deposits 54,277 61,025 66,757 67,318 67,953 66,687 67,155 66,274 65,873 65,964 44 Other3 3,119 4,443 12,573 7,069 6,506 6,481 6,849 7,304 5,981 7,888 45 Banks' custody liabilities5 12,463 11,956 14,877 14,891 15,157 13,879 14,170 13,400 13,602 17,321 46 U.S. Treasury bills and certificates6 3,515 3,675 4,551 4,632 44,,883344 44,,663300 55,,008811 55,,228855 55,,550044 88,,662211 47 Other negotiable and readily transferable instruments7 6,898 5,929 7,958 8,350 8,293 7,205 7,083 7,113 6,518 6,687 48 Other 2,050 2,351 2,368 1,909 2,030 2,044 2,007 1,001 1,580 2,013 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 7,314 6,425 7,203 7,183 7,282 6,429 5,909 5,713 6,346 5,6% 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 1990 AArreeaa aanndd ccoouunnttrryy 11998877 11998888 11998899 Apr. May June July Aug. Sept. Oct." 1 618,874 685,339 736,627 702,923 715,613 707,464 719,673 737,81 V 741,610' 742,340 2 Foreign countries 614,411 682,115 731,855 697,195 711,055 702,446 715,560 733,521r 736,404' 737,834 3 234,641 231,912 237,453 229,675 236,551 234,112 235,872 245,188' 244,127' 243,693 4 920 1,155 1,233 1,549 1,373 1,531 1,498 1,544 1,436' 1,401 Belgium-Luxembourg 9,347 10,022 10,611 10,128 9,507 10,047 10,564 11,537' 12,126' 12,207 6 760 2,200 1,415 2,244 2,152 2,411 2,581 2,238 2,055 1,984 7 377 285 570 464 314 387 485 463r 392 660 8 29,835 24,777 26,903 24,263 23,103 23,566 23,111 24,201r 29,116' 29,151 9 7,022 6,772 7,578 8,798 8,030 8,076 7,580 7,605r 7,835' 8,439 10 689 672 1,028 879 860 833 877 923' 1,435' 993 11 Italy 12,073 14,599 16,169 14,138 16,347 16,779 17,114 17,117 16,351 16,983 1? 5,014 5,316 6,613 7,731 8,166 7,617 5,968 6,209' 5,385' 6,082 13 1,362 1,559 2,401 1,454 1,582 2,420 1,793 2,192 1,951 1,875 14 801 903 2,407 2,354 2,359 3,082 3,073 2,934 2,992 2,970 IS 2,621 5,494 4,364 4,230 4,535 4,391 4,922 4,447' 4,343' 5,312 16 1,379 1,284 1,491 1,689 1,655 1,769 1,586 1,495 833 1,719 17 33,766 34,199 34,496 33,244 35,260 34,780 33,809 34,545' 34,637' 34,585 18 703 1,012 1,818 1,459 1,641 1,596 1,654 1,897 1,634 1,452 19 United Kingdom 116,852 111,811 102,362 99,376 104,624 98,530 100,861 108,181' 104,646' 100,950 70 Yugoslavia 710 529 1,474 1,599 1,934 2,169 2,436 2,272 2,043 1,753 71 Other Western Europe 9,798 8,598 13,563 12,239 11,423 12,360 14,367 14,057' 13,165' 13,649 77 U.S.S.R 32 138 350 446 158 75 257 56 240' 234 23 Other Eastern Europe2 582 591 608 1,392 1,529 1,695 1,335 1,275' 1,515' 1,294 24 Canada 30,095 21,062 18,865 19,485 19,900 19,956 20,056 21,122 20,796 19,626 75 Latin America and Caribbean 220,372 271,146 310,948 309,109 315,674 312,782 316,603 320,004' 325,425' 328,180 ?6 5,006 7,804 7,304 8,235 8,346 7,993 8,163 7,844' 7,981 7,717 71 74,767 86,863 99,341 90,331 98,658 99,255 98,292 101,635' 108,264 110,263 7H 2,344 2,621 2,884 2,807 2,514 3,072 2,824 2,656' 2,739 2,487 79 4,005 5,314 6,334 6,729 6,088 6,110 6,083 6,329' 6,058' 5,895 30 British West Indies 81,494 113,840 138,263 143,264 142,129 137,069 142,702 141,998' 140,089' 140,794 31 Chile 2,210 2,936 3,212 3,418 3,517 3,449 3,540 3,491' 3,135 3,170 3? 4,204 4,374 4,653 4,404 4,471 4,508 4,474 4,344 3,926' 4,284 33 Cuba 12 10 10 9 10 11 15 11 10 49 34 1,082 1,379 1,391 1,334 1,367 1,368 1,349 1,348 1,348 1,314 35 1,082 1,195 1,312 1,451 1,473 1,473 1,523 1,496' 1,517 1,485 36 160 269 209 224 215 224 221 213 217 219 37 14,480 15,185 15,423 15,085 15,116 16,141 16,057 16,325' 16,486 16,465 38 Netherlands Antilles 4,975 6,420 6,310 6,460 6,806 6,628 6,375 6,429' 6,929 7,126 39 Panama 7,414 4,353 44,,336611 4,749 4,540 4,544 4,388 4,648' 4,632 4,592 40 1,275 1,671 11,,998844 1,703 1,532 1,473 1,405 1,369 1,362 1,360 41 1,582 1,898 2,284 2,575 2,560 2,529 2,560 2,531 2,514 2,512 47 9,048 9,147 9,468 9,673 9,717 10,292 9,830 10,435' 11,105' 11,351 43 Other 5,234 5,868 6,206 6,659 6,614 6,645 6,803 6,901' 7,113' 7,094 44 121,288 147,838 156,201 131,027 129,147 126,265 134,138 137,766 137,064' 137,019 China 45 1,162 1,895 1,773 1,844 1,785 1,871 1,890 2,319 22,,110055 22,,116633 46 21,503 26,058 19,588 15,440 15,174 11,006 12,611 12,639 12,468' 12,242 47 10,180 12,248 12,416 12,277 12,896 12,369 13,316 13,823 13,826 13,556 48 582 699 780 1,013 1,148 966 909 806 1,035 953 49 1,404 1,180 1,281 1,560 1,192 1,520 1,377 1,130 1,398 1,261 50 1,292 1,461 1,243 1,311 1,227 1,202 1,122 1,125 939 921 51 54,322 74,015 81,184 65,581 62,101 62,367 66,293 68,664 69,105' 67,923 57 1,637 2,541 3,215 2,120 2,049 2,121 2,157 2,316 2,566' 2,442 53 1,085 1,163 1,766 1,193 1,191 1,329 1,314 1,350 1,340 1,274 54 Thailand 1,345 1,236 2,093 1,595 1,973 2,125 2,745 2,233 1,626 1,448 55 Middle-East oil-exporting countries3 13,988 12,083 13,370 11,626 13,049 13,076 14,039 14,928 14,047' 16,405 56 Other 12,788 13,260 17,491 15,466 15,362 16,313 16,366 16,433 16,609 16,432 57 3,945 3,991 3,823 3,722 3,778 3,650 3,412 4,638' 4,152' 4,148 58 1,151 911 686 595 646 592 583 1,505 970 1,099 59 194 68 78 111 86 81 95 77 93 87 60 202 437 205 236 241 318 239 332 393 234 61 67 85 86 70 66 41 38 43 44 45 6? Oil-exporting countries 1,014 1,017 1,121 936 1,016 890 873 1,072 966 1,051 63 Other 1,316 1,474 1,648 1,775 1,722 1,728 1,584 1,609' 1,687' 1,631 64 4,070 6,165 4,564 4,176 6,005 5,680 5,480 4,803 4,840 5,169 65 3,327 5,293 3,867 3,469 5,250 5,052 4,892 4,122 4,109 4,371 66 All other 744 872 697 707 755 628 588 681 732 797 67 Nonmonetary international and regional 4,464 3,224 4,772 5,727 4,558 55,,001188 4,112 4,290' 55,,220066'' 44,,550077 68 International 2,830 2,503 3,825 4,147 3,393 3,883 2,981 3,150 3,982' 3,392 69 Latin American regional 1,272 589 684 1,123 912 920 812 569' 668 627 70 Other regional6 362 133 263 457 253 215 319 571 556 487 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, Hungary, Poland, and Romania. 6. Asian, African, Middle Eastern, and European regional organizations, 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and except the Bank for International Settlements, which is included in "Other United Arab Emirates (Trucial States). Western Europe." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • February 1991 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 1990 AArreeaa aanndd ccoouunnttrryy 11998877 11998888 11998899 Apr. May June July Aug. Sept.' Oct." 1 Total 459,877 491,165 533,992 488,844 489,028 489,245 488,294 494,983r 493,191 493,635 2 Foreign countries 456,472 489,094 530,553 484,452 484,443 485,050 484,019 491,339' 487,996 490,228 3 Europe 102,348 116,928 119,024 105,154 103,615 102,394 102,363 106,453' 105,483 103,699 4 Austria 793 483 415 592 420 337 399 287 373 262 5 Belgium-Luxembourg 9,397 8,515 6,478 6,330 6,765 5,611 6,744 6,672' 5,617 5,122 6 Denmark 717 483 582 750 1,004 590 503 676 674 489 7 Finland 1,010 1,065 1,027 1,025 931 1,035 1,112 1,177 %2 814 8 France 13,548 13,243 16,146 16,087 16,224 14,794 13,746 14,288 14,423 13,750 9 Germany 2,039 2,329 2,865 2,476 3,045 2,870 2,595 2,939 3,408 3,242 10 Greece 462 433 788 622 597 514 529 610 686 729 11 Italy 7,460 7,936 6,662 4,230 4,758 5,133 4,615 4,498' 4,674 5,070 12 Netherlands 2,619 2,541 1,904 2,027 1,968 2,041 1,749 1,636' 2,219 1,711 13 Norway 934 455 609 918 761 745 692 716 744 732 14 Portugal 477 261 376 381 407 540 543 427' 412 452 15 Spain 1,853 1,823 1,930 1,726 1,897 2,084 2,125 2,100' 2,312 2,373 16 Sweden 2,254 1,977 1,773 2,206 2,711 2,614 3,362 3,407' 2,447 2,567 17 Switzerland 2,718 3,895 6,141 4,826 4,999 5,249 4,297 3,712' 3,928 3,485 18 Turkey 1,680 1,233 1,071 1,120 1,138 1,230 1,186 1,434 1,377 1,371 19 United Kingdom 50,823 65,706 65,527 55,604 52,333 53,577 54,804 58,63c 57,830 58,226 20 Yugoslavia 1,700 1,390 1,329 1,121 1,128 1,095 1,070 1,029 1,120 1,226 21 Other Western Europe2 619 1,152 1,302 970 786 804 960 694' 697 722 22 U.S.S.R 389 1,255 1,179 1,322 945 754 565 624 940 889 23 Other Eastern Europe 852 754 921 820 800 777 765 897' 640 466 24 Canada 25,368 18,889 15,450 15,234 16,355 16,492 16,391 15,431 15,455 16,172 25 Latin America and Caribbean 214,789 214,264 230,392 200,361 205,853 208,825 199,793 204,007' 211,769 221,193 26 Argentina 11,996 11,826 9,270 8,025 7,689 7,600 7,166 7,111 7,204 7,028 27 Bahamas 64,587 66,954 77,921 63,937 70,508 66,913 67,041 67,865 71,529 71,900 28 Bermuda 471 483 1,315 443 774 1,830 1,988 2,443 3,736 3,691 29 Brazil 25,897 25,735 23,749 21,849 21,793 20,699 20,180 18,906 18,649 18,626 30 British West Indies 50,042 55,888 68,709 67,706 67,564 74,590 66,428 70,980' 73,873 81,996 31 Chile 6,308 5,217 4,353 3,715 3,630 3,453 3,490 3,430 3,265 3,372 32 Colombia 2,740 2,944 2,784 2,649 2,624 2,5% 22,,554411 2,700 2,563 2,544 33 Cuba 1 1 1 0 0 0 11 2 0 0 34 Ecuador 2,286 2,075 1,688 1,527 1,503 1,523 1,515 1,507 1,498 1,487 35 Guatemala4 144 198 197 207 206 188 196 207' 215 211 36 Jamaica4 188 212 297 260 260 258 262 243' 254 262 37 Mexico 29,532 24,637 23,376 14,734 14,529 14,665 14,689 14,953' 15,366 15,359 38 Netherlands Antilles 980 1,306 1,921 1,759 1,630 1,722 1,873 1,632' 1,821 3,310 39 Panama 4,744 2,521 1,740 1,733 1,643 1,598 1,491 1,491' 1,555 1,463 40 Peru 1,329 1,013 771 721 679 683 661 644' 649 667 41 Uruguay 963 910 928 886 876 842 843 834 796 793 42 Venezuela 10,843 10,733 9,647 8,405 8,251 8,136 8,064 7,642' 7,274 7,102 43 Other Latin America and Caribbean 1,738 1,612 1,726 1,805 1,693 1,527 1,364 1,417' 1,523 1,384 44 110066,,009966 130,881 157,444 155,553 150,172 148,963 115588,,002288 115577,,994444 114477,,445522 114411,,771133 China Mainland 968 762 634 674 517 537 554 586 542 639 46 Taiwan 4,592 4,184 2,776 1,890 1,941 1,946 1,583 2,026 1,710 1,061 47 Hong Kong 8,218 10,143 11,128 8,965 9,563 9,271 9,434 9,473 9,026 8,028 48 India 510 560 621 588 579 802 852 628 867 506 49 Indonesia 580 674 651 560 599 801 814 836 826 892 50 Israel 1,363 1,136 813 746 738 777 738 785 698 688 51 Japan 68,658 90,149 111,270 117,560 108,245 107,671 114,663 114,973 106,388 101,907 52 Korea 5,148 5,213 5,323 5,011 5,186 5,128 5,515 5,614 5,679 5,362 53 Philippines 2,071 1,876 1,344 1,221 1,351 1,357 1,342 1,369 1,333 1,206 54 Thailand 496 848 1,140 1,073 1,202 1,279 1,242 1,245 1,279 1,444 55 Middle East oil-exporting countries 4,858 6,213 10,149 8,376 9,577 10,816 12,318 10,657 10,430 11,278 56 Other Asia 8,635 9,122 11,594 8,891 10,674 8,576 8,971 9,752 8,673 8,703 57 Africa 4,742 5,718 5,890 5,953 5,913 5,787 5,567 5,567' 5,545 5,601 58 Egypt 521 507 502 491 488 469 421 449 430 411 59 Morocco 542 511 559 596 587 565 544 539 542 534 60 South Africa 1,507 1,681 1,628 1,632 1,639 1,573 1,560 1,571 1,594 1,576 61 Zaire 15 17 16 19 20 21 20 19 20 19 62 Oil-exporting countries6 1,003 1,523 1,648 1,705 1,665 1,649 1,604 1,586 1,536 1,510 63 Other 1,153 1,479 1,537 1,509 1,515 1,511 1,418 1,403' 1,424 1,551 64 Other countries 3,129 2,413 2,354 2,195 2,535 2,590 1,878 1,938 2,292 1,850 65 Australia 2,100 1,520 1,781 1,551 1,657 1,712 1,422 1,304 1,868 1,416 66 All other 1,029 894 573 644 878 878 456 634 424 433 67 Nonmonetary international and regional organizations7 3,404 2,071 3,439 4,393 4,585 4,195 4,275 3,644' 5,195 3,407 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, Hungary, Poland, 7. Excludes the Bank for International Settlements, which is included in 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 1990 TTyyppee ooff ccllaaiimm 11998877 11998888 11998899 Apr. May June July Aug/ Septr Oct." 444444499999997777777,,,,,,,666666633333335555555 555555533333338888888,,,,,,,666666688888889999999 555555599999992222222,,,,,,,444444400000001111111 555555544444448888888,,,,,,,111111133333335555555 555555555555555555555,,,,,,,000000033333330000000 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 444444455555559999999,,,,,,,888888877777777777777 444444499999991111111,,,,,,,111111166666665555555 555555533333333333333,,,,,,,999999999999992222222 488,844 489,028 444444488888889999999,,,,,,,222222244444445555555 488,294 494,983 444444499999993333333,,,,,,,111111199999991111111 493,635 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 66666664444444,,,,,,,666666600000005555555 66666662222222,,,,,,,666666655555558888888 66666660000000,,,,,,,000000077777773333333 51,355 50,804 44444449999999,,,,,,,111111133333339999999 47,570 46,742 44444448888888,,,,,,,111111144444445555555 45,706 44 OOwwnn ffoorreeiiggnn ooffffiicceess 222222222222224444444,,,,,,,777777722222227777777 222222255555557777777,,,,,,,444444433333336666666 222222299999995555555,,,,,,,999999988888880000000 274,354 275,178 222222288888880000000,,,,,,,000000011111116666666 275,275 273,978 222222277777778888888,,,,,,,888888822222226666666 280,568 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111122222227777777,,,,,,,666666600000009999999 111111122222229999999,,,,,,,444444422222225555555 111111133333334444444,,,,,,,888888855555554444444 125,318 125,908 111111122222221111111,,,,,,,777777700000006666666 128,481 137,740 111111122222225555555,,,,,,,222222211111119999999 124,929 66 DDeeppoossiittss 66666660000000,,,,,,,666666688888887777777 66666665555555,,,,,,,888888899999998888888 77777778888888,,,,,,,111111188888884444444 72,633 72,566 66666668888888,,,,,,,333333300000009999999 73,114 79,619 77777771111111,,,,,,,888888822222220000000 71,136 77 OOtthheerr 66666666666666,,,,,,,999999922222222222222 66666663333333,,,,,,,555555522222227777777 55555556666666,,,,,,,666666677777770000000 52,685 53,342 55555553333333,,,,,,,333333399999997777777 55,367 58,121 55555553333333,,,,,,,333333399999999999999 53,793 88 AAllll ootthheerr ffoorreeiiggnneerrss 44444442222222,,,,,,,999999933333336666666 44444441111111,,,,,,,666666644444446666666 44444443333333,,,,,,,000000088888884444444 37,818 37,138 33333338888888,,,,,,,333333388888884444444 36,969 36,523 44444441111111,,,,,,,000000000000001111111 42,432 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss33...... 33333337777777,,,,,,,777777755555558888888 44444447777777,,,,,,,555555522222224444444 55555558888888,,,,,,,444444400000009999999 55555558888888,,,,,,,888888899999990000000 66666661111111,,,,,,,888888833333339999999 3333333,,,,,,,666666699999992222222 8888888,,,,,,,222222288888889999999 11111112222222,,,,,,,888888833333334444444 11111115555555,,,,,,,444444499999999999999 11111114444444,,,,,,,777777700000007777777 11 Negotiable and readily transferable 22222226666666,,,,,,,666666699999996666666 22222225555555,,,,,,,777777700000000000000 33333330000000,,,,,,,999999988888883333333 22222227777777,,,,,,,444444455555551111111 22222229999999,,,,,,,999999966666661111111 12 Outstanding collections and other 7777777,,,,,,,333333377777770000000 11111113333333,,,,,,,555555533333335555555 11111114444444,,,,,,,555555599999991111111 11111115555555,,,,,,,999999944444440000000 11111117777777,,,,,,,111111177777771111111 13 MEMO: Customer liability on 22222223333333,,,,,,,111111100000007777777 11111119999999,,,,,,,555555599999996666666 11111112222222,,,,,,,777777755555553333333 11111112222222,,,,,,,999999933333330000000 11111112222222,,,,,,,888888811111112222222 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States 40,909 45,565 45,675 39,272 41,517 40,222 40,973r 44,579 45,872 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 Maturity; by borrower and area 1987 1988 June 1 Total 232,295 235,130 233,184 237,648 213,670 208,862 By borrower 2 Maturity of 1 year or less2 160,555 163,997 172,634 177,896 160,087 159,150 3 Foreign public borrowers 24,842 25,889 26,562 23,483 22,725 20,371 4 All other foreigners 135,714 138,108 146,071 154,413 137,362 138,778 5 Maturity over 1 year2 71,740 71,133 60,550 59,752 53,584 49,712 6 Foreign public borrowers 39,103 38,625 35,291 35,822 30,050 28,332 7 All other foreigners 32,637 32,507 25,259 23,931 23,533 21,380 By area Maturity of 1 year or less2 8 Europe 61,784 59,027 55,909 53,912 48,368 49,449 9 Canada 5,895 5,680 6,282 5,886 5,694 5,754 10 Latin America and Caribbean 56,271 56,535 57,991 52,989 46,719 44,336 11 Asia 29,457 35,919 46,224 57,766 51,744 51,182 12 Africa 2,882 2,833 3,337 3,225 3,165 2,991 13 All other3 4,267 4,003 2,891 4,118 4,396 5,437 Maturity of over 1 year2 14 Europe 6,737 6,696 4,666 4,121 4,407 4,201 15 Canada 1,925 2,661 1,922 2,353 2,702 2,819 16 Latin America and Caribbean 56,719 53,817 47,547 45,818 37,668 33,623 17 Asia 4,043 3,830 3,613 4,142 5,479 5,866 18 Africa 1,539 1,747 2,301 2,633 2,764 2,739 19 All other3 777 2,381 501 684 564 464 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 • February 1991 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 1988 1989 1990 Area or country iys6 iyo / Sept. Dec. Mar. June Sept. Dec. Mar. June Sept. 1 Total 386.5 382.4 354.0 346.3 346.1 340.0 346.2 338.3 334.4 322.9 333.2r 2 G-10 countries and Switzerland 156.6 159.7 148.7 152.7 145.4 145.1 146.4 152.9 147.1 140.1 144.4r 3 Belgium-Luxembourg 8.4 10.0 9.5 9.0 8.6 7.8 6.9 6.3 6.6 6.2 6.5 4 France 13.6 13.7 10.3 10.5 11.2 10.8 11.1 11.7 10.5 10.3 11.1 5 Germany 11.6 12.6 9.2 10.3 10.2 10.6 10.4 10.5 11.2 11.2 11.2 6 Italy 9.0 7.5 5.6 6.8 5.2 6.1 6.8 7.4 6.0 5.5 4.5 7 Netherlands 4.6 4.1 2.9 2.7 2.8 2.8 2.4 3.1 3.1 2.7 3.8r 8 Sweden 2.4 2.1 1.9 1.8 2.3 1.8 2.0 2.0 2.1 2.3 2.4 9 Switzerland 5.8 5.6 5.2 5.4 5.1 5.4 6.1 7.1 6.3 6.4 5.6 10 United Kingdom 70.9 68.8 67.6 66.2 65.6 64.5 63.7 67.2 64.0 59.9 62.1 11 Canada 5.2 5.5 4.9 5.0 4.0 5.1 5.9 5.4 4.8 5.2 5.1 12 Japan 25.1 29.8 31.6 34.9 30.5 30.2 31.0 32.2 32.6 30.4 32.1 13 Other developed countries 26.1 26.4 23.0 21.0 21.1 21.2 21.0 20.7 23.1 22.6 23.0 14 Austria 1.7 1.9 1.6 1.5 1.4 1.7 1.5 1.5 1.5 1.5 1.6 15 Denmark 1.7 1.7 1.2 1.1 1.1 1.4 1.1 1.1 1.1 1.1 1.0 16 Finland 1.4 1.2 1.3 1.1 1.0 1.0 1.1 1.0 1.1 .9 .8 17 Greece 2.3 2.0 2.1 1.8 2.1 2.3 2.4 2.5 2.6 2.7 2.8 18 Norway 2.4 2.2 2.0 1.8 1.6 1.8 1.4 1.4 1.7 1.4 1.5 19 Portugal .9 .6 .4 .4 .4 .6 .4 .4 .4 .8 .6 20 Spain 5.8 8.0 6.3 6.2 6.6 6.2 6.9 7.1 8.3 7.9 8.5 21 Turkey 2.0 2.0 1.6 1.5 1.3 1.1 1.2 1.2 1.3 1.4 1.6 22 Other Western Europe 1.5 1.6 1.9 1.3 1.1 1.1 1.0 .7 1.0 1.1 .7 23 South Africa 3.0 2.9 2.7 2.4 2.2 2.1 2.1 2.0 2.0 1.9 1.9 24 Australia 3.4 2.4 1.8 1.8 2.4 1.9 2.1 1.6 2.1 1.9 2.0 25 OPEC countries3 19.4 17.4 17.9 16.6 16.2 16.1 16.2 17.1 15.5 15.4 14.4 26 Ecuador 2.2 1.9 1.8 1.7 1.6 1.5 1.5 1.3 1.2 1.2 1.1 27 Venezuela 8.7 8.1 7.9 7.9 7.9 7.5 7.4 7.0 6.1 6.0 6.0 28 Indonesia 2.5 1.9 1.8 1.7 1.7 1.9 2.0 2.0 2.1 2.0 2.3 29 Middle East countries 4.3 3.6 4.6 3.4 3.3 3.4 3.5 5.0 4.3 4.4 3.3 30 African countries 1.8 1.9 1.9 1.9 1.7 1.6 1.9 1.7 1.8 1.8 1.7 31 Non-OPEC developing countries 99.6 97.8 87.2 85.3 85.9 83.4 81.2 77.5 68.8 66.5 66.4r Latin America 32 Argentina 9.5 9.5 9.3 9.0 8.5 7.9 7.6 6.3 5.5 5.1 4.9 33 Brazil 25.3 24.7 22.4 22.4 22.8 22.1 20.9 19.0 17.5 16.0 15.0 34 Chile 7.1 6.9 6.3 5.6 5.7 5.2 4.9 4.6 4.3 3.7 3.6 35 Colombia 2.1 2.0 2.1 2.1 1.9 1.7 1.6 1.8 1.8 1.7 1.8 36 Mexico 24.0 23.5 20.4 18.8 18.3 17.7 17.2 17.7 12.8 13.0 13.1 37 Peru 1.4 1.1 .8 .8 .7 .6 .6 .6 .5 .5 .5 38 Other Latin America 3.1 2.8 2.5 2.6 2.7 2.6 2.9 2.8 2.7 2.4 2.4 Asia China 39 Mainland .4 .3 .2 .3 .5 .3 .3 .3 .3 .2 .2 40 Taiwan 4.9 8.2 3.2 3.7 4.9 5.2 5.0 4.5 3.8 3.6 3.9 41 India 1.2 1.9 2.0 2.1 2.6 2.4 2.7 3.1 3.5 3.6 3.6 42 Israel 1.5 1.0 1.0 1.2 .9 .8 .7 .7 .6 .7 .6 43 Korea (South) 6.7 5.0 6.0 6.1 6.1 6.6 6.5 5.9 5.3 5.6 6.2 44 Malaysia 2.1 1.5 1.7 1.6 1.7 1.6 1.7 1.7 1.8 1.8 1.8 45 Philippines 5.4 5.2 4.7 4.5 4.4 4.4 4.0 4.1 3.7 3.9 3.9 46 Thailand .9 .7 1.2 1.1 1.0 1.0 1.3 1.3 1.1 1.3 1.5 47 Other Asia .7 .7 .8 .9 .8 .8 1.0 1.0 1.2 1.1 1.2 Africa 48 Egypt .7 .6 .5 .4 .5 .6 .5 .4 .4 .5 .4 49 Morocco .9 .9 .8 .9 .9 .9 .8 .9 .9 .9 .9 50 Zaire .1 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 51 Other Africa4 1.6 1.3 1.2 1.1 1.1 1.1 1.0 1.0 .9 .9 .8 52 Eastern Europe 3.5 3.2 3.1 3.6 3.5 3.4 3.5 3.5 3.4 3.0 2.9 53 U.S.S.R .1 .3 .4 .7 .7 .6 .8 .7 .8 .4 .4 54 Yugoslavia 2.0 1.8 1.8 1.8 1.7 1.7 1.7 1.6 1.4 1.4 1.3 55 Other 1.4 1.1 1.0 1.1 1.1 1.1 1.1 1.3 1.3 1.2 1.2 56 Offshore banking centers 61.5 54.5 47.3 44.2 48.5 43.1 49.2 36.6 42.9 40.1 41.9r 57 Bahamas 22.4 17.3 12.9 11.0 15.8 11.0 11.4 5.5 9.3 8.5 8.9^ 58 Bermuda .6 .6 .9 .9 1.1 .7 1.3 1.7 .9 2.2 4.0 59 Cayman Islands and other British West Indies 12.3 13.5 11.9 12.9 12.0 10.8 15.3 8.9 10.9 8.5 9.0 60 Netherlands Antilles 1.8 1.2 1.2 1.0 .9 1.0 1.1 2.3 2.6 2.3 2.2 6 6 2 1 L Pa e n b a a m no a n 4.0 J 3.7 J 2.6J 2.5 J 2.2J 1.9 I 1.5 1 . . 4 1 1.3 1.4 1.5 63 Hong Kong ll'l 1L2 10J 9^6 9.6 10.4 lo!7 9.7 9i8 10^0 9^0 64 Singapore 9.2 7.0 7.0 6.1 6.8 7.3 7.8 7.0 8.0 7.0 7.2 65 Others6 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 66 Miscellaneous and unallocated7 19.8 23.2 26.7 22.6 25.0 27.4 28.5 29.8 33.2 35.1 40.0 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 1989 1990 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998866 11998877 11998888 Mar. June Sept. Dec. Mar. June 1 25,587 28,302 32,938 38,513 38,460 36,523 38,429 38,518 39,872 ? 3 P P a a y y a a b b l l e e i i n n f d o o r l e la ig rs n currencies 21 3 , , 7 8 4 3 9 8 22 5 , ,5 7 1 8 7 5 27 5 , , 3 6 2 1 0 8 32 5 , , 7 8 0 0 6 6 33 5 , , 3 0 7 8 2 8 3 4 1 , , 8 68 3 5 8 3 4 3 , , 8 5 4 8 5 5 3 4 4 , , 2 2 8 2 9 9 3 4 5 , , 7 07 9 2 9 r By type 4 12,133 12,424 14,507 18,744 18,427 17,117 18,380 17,802 19,786 5 Payable in dollars 9,609 8,643 10,608 14,648 14,551 13,289 14,478 14,589 16,098' 6 Payable in foreign currencies 2,524 3,781 3,900 4,096 3,875 3,829 3,902 3,213 3,688r 7 Commercial liabilities 13,454 15,878 18,431 19,768 20,034 19,406 20,050 20,716 20,086 8 Trade payables 6,450 7,305 6,505 7,094 6,510 6,902 7,373 7,275 6,849^ 9 Advance receipts and other liabilities 7,004 8,573 11,926 12,674 13,524 12,503 12,676 13,440 13,237 10 Payable in dollars 12,140 14,142 16,712 18,058 18,821 18,397 19,107 19,639 18,975 11 Payable in foreign currencies 1,314 1,737 1,719 1,711 1,213 1,009 943 1,076 1,111 By area or country Financial liabilities 1? 7,917 8,320 9,962 13,854 12,575 11,197 1111,,662222 1100,,992255 1122,,002266 13 Belgium-Luxembourg 270 213 289 320 357 308 340 333 347 14 661 382 359 224 257 242 258 217 156 15 368 551 699 561 618 590 523 482 601 16 Netherlands 542 866 880 874 835 853 946 865 934 17 Switzerland 646 558 1,033 954 938 799 541 529 667 18 United Kingdom 5,140 5,557 6,533 10,721 9,402 8,207 8,742 8,212 8,759 19 Canada 399 360 388 616 626 575 573 476 345 70 Latin America and Caribbean 1,944 1,189 839 677 1,262 1,367 1,268 1,814 2,508 71 Bahamas 614 318 184 189 165 186 157 237 249 77 Bermuda 4 0 0 0 7 7 17 0 0 73 Brazil 32 25 0 0 0 0 0 0 0 74 British West Indies 1,146 778 645 471 661 743 635 1,096 1,717 75 Mexico 22 13 1 15 17 4 6 5 4 26 Venezuela 0 0 0 0 0 0 0 0 0 77 1,805 2,451 3,312 3,591 3,863 3,878 4,814 4,483 4,848 78 Japan 1,398 2,042 2,563 2,825 3,100 3,130 3,963 3,445 3,846 29 Middle East oil-exporting countries2 8 8 3 1 12 2 2 3 5 30 Africa 1 4 2 5 3 4 2 3 3 31 Oil-exporting countries3 1 1 0 3 2 2 0 0 1 32 All other4 67 100 4 2 97 97 100 102 55 Commercial liabilities 33 4,446 5,516 7,305 7,834 77,,777788 8,319 88,,888833 99,,113333 88,,330044 34 Belgium-Luxembourg 101 132 158 122 114 137 178 233 295 35 352 426 455 552 535 806 871 881 928 36 715 909 1,699 1,373 1,190 1,183 1,362 1,143 959 37 424 423 587 667 688 548 699 688 606 3 3 8 9 United Kingdom 1, 3 3 8 4 5 1 1, 5 5 5 9 9 9 2,0 4 6 1 5 7 2,5 4 8 4 5 6 2,7 4 0 4 9 7 2,7 5 0 3 3 1 2,6 6 1 2 8 1 2,9 5 2 8 5 3 2,4 6 3 07 5 r 40 Canada 1,405 1,301 1,217 1,163 1,133 1,189 1,067 1,124 1,260 41 Latin America and Caribbean 924 864 1,090 1,253 1,673 1,086 1,187 1,304 1,277 47 32 18 49 35 34 27 41 37 22 43 156 168 286 426 388 305 308 516 412 44 Brazil 61 46 95 103 541 113 100 116 106 45 British West Indies 49 19 34 31 42 30 27 18 29 46 217 189 217 250 235 220 304 241 285 47 Venezuela 216 162 114 114 131 107 154 85 119 48 5,080 6,565 6,915 7,318 7,045 7,086 7,038 6,885 6,970 49 2,042 2,578 3,094 3,059 2,708 2,674 2,772 2,624 3,088 50 Middle East oil-exporting countries2,3 1,679 1,964 1,385 1,520 1,482 1,442 1,401 1,393 1,125 51 619 574 576 700 762 648 844 753 885 52 Oil-exporting countries3 197 135 202 272 263 255 307 263 277 53 All other4 980 1,057 1,328 1,499 1,642 1,077 1,031 1,517 1,390 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 • February 1991 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1989 1990 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998866 11998877 11998888 Mar. June Sept. Dec. Mar. June 1 Total 36,265 30,964 33,874 31,873 34,088 31,738 31,085 29,488 31,077' 2 Payable in dollars 33,867 28,502 31,494 29,514 31,871 29,513 28,706 27,334 28,772' 3 Payable in foreign currencies 2,399 2,462 2,381 2,359 2,217 2,225 2,379 2,154 2,304 By type 4 Financial claims 26,273 20,363 21,739 19,734 21,617 18,827 17,388 16,286 17,521r 5 Deposits 19,916 14,894 15,642 14,594 16,500 12,143 10,435 10,458 9,898' 6 Payable in dollars 19,331 13,765 14,543 13,680 15,581 11,278 9,460 9,564 8,801' 7 Payable in foreign currencies 585 1,128 1,099 914 919 866 975 893 1,097 8 Other financial claims 6,357 5,470 6,097 5,140 5,117 6,684 6,953 5,828 7,623 9 Payable in dollars 5,005 4,656 5,320 4,202 4,380 5,822 6,199 5,140 6,929 10 Payable in foreign currencies 1,352 814 777 938 737 862 754 688 694 11 Commercial claims 9,992 10,600 12,136 12,139 12,471 12,912 13,697 13,202 13,556 12 Trade receivables 8,783 9,535 11,061 10,877 11,039 11,427. 12,084 11,610 11,865 13 Advance payments and other claims 1,209 1,065 1,075 1,262 1,432 1,485 1,612 1,593 1,691 14 Payable in dollars 9,530 10,081 11,630 11,632 11,911 12,414 13,047 12,630 13,043 15 Payable in foreign currencies 462 519 505 507 560 498 650 573 513 By area or country Financial claims 16 Europe 10,744 9,531 10,169 9,018 8,616 7,253 6,861 6,727 9,179 17 Belgium-Luxembourg 41 7 18 22 161 166 28 22 133' 18 France 138 332 203 193 176 166 153 199 141' 19 Germany 116 102 120 112 149 120 195 507 93' 20 Netherlands 151 350 348 384 297 292 303 315 332 21 Switzerland 185 65 218 241 68 111 95 123 137' 22 United Kingdom 9,855 8,467 8,929 7,769 7,468 6,169 5,850 5,358 8,136' 23 Canada 4,808 2,844 2,325 2,175 2,568 2,356 1,934 1,803 1,993 24 Latin America and Caribbean 9,291 7,012 8,139 7,504 9,319 8,315 7,428 6,903 5,431' 25 Bahamas 2,628 1,994 1,846 2,183 1,875 1,699 1,516 1,599 920 26 Bermuda 6 7 19 25 33 33 7 4 3 27 Brazil 86 63 47 49 78 70 224 79 84 28 British West Indies 6,078 4,433 5,742 4,826 6,923 6,125 5,268 4,806 4,027' 29 Mexico 174 172 151 117 114 105 94 152 153 30 Venezuela 21 19 21 25 31 36 20 21 20 31 Asia 1,317 879 844 895 995 801 831 763 815 32 Japan 999 605 574 571 525 440 439 416 473 33 Middle East oil-exporting countries 7 8 5 8 8 7 8 7 6 34 Africa 85 65 106 89 80 75 140 67 62 35 Oil-exporting countries3 28 7 10 8 8 8 12 11 8 36 All other4 28 33 155 52 40 27 195 23 41 Commercial claims 37 Europe 3,725 4,180 5,170 5,094 5,290 5,423 6,160 6,025 6,118 38 Belgium-Luxembourg 133 178 189 214 205 220 241 219 207 39 France 431 650 670 786 770 824 948 957 902 40 Germany 444 562 667 689 675 688 689 690 661 41 Netherlands 164 133 212 164 413 396 478 450 475 42 Switzerland 217 185 344 264 231 222 305 270 235 43 United Kingdom 999 1,073 1,323 1,301 1,371 1,396 1,570 1,690 1,654 44 Canada 934 936 983 1,124 1,181 1,278 1,058 1,091 1,108 45 Latin America and Caribbean 1,857 1,930 2,239 2,118 2,100 2,131 2,161 2,046 2,199 46 Bahamas 28 19 36 34 13 10 57 22 17 47 Bermuda 193 170 230 234 238 270 323 242 283 48 Brazil 234 226 298 277 314 232 286 226 230 49 British West Indies 39 26 22 23 30 33 36 38 46 50 Mexico 412 368 461 485 438 508 508 524 593 51 Venezuela 237 283 227 213 229 188 146 187 220 52 Asia 2,755 2,915 2,979 3,113 3,143 3,299 3,513 3,249 3,38c 53 Japan 881 1,158 946 1,042 998 1,177 1,185 1,061 1,046 54 Middle East oil-exporting countries 563 450 446 437 430 406 508 432 424' 55 Africa 500 401 434 394 407 398 418 425 391' 56 Oil-exporting countries 139 144 122 95 111 87 107 89 98 57 All other4 222 238 331 297 350 381 386 367 360 1. For a description of the changes in the International Statistics tables, see 3. Comprises Algeria, Gabon, Libya, and Nigeria. July 1979 Bulletin, p. 550. 4. Includes nonmonetary international and regional organizations. 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Holdings and Transactions A67 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1990 1990 Transactions, and area or country 1988 1989 Jan.- Apr. May June July Aug. Sept/ Oct." Oct. U.S. corporate securities STOCKS 1 Foreign purchases 181,185 213,535 147,085 11,457 15,231 18,211 17,447 20,653 8,812 11,631 183,185 203,537 160,375 12,356 17,717 18,584 16,080 21,950 11,318 15,430 2 Foreign sales -2,000 9,998 -13,290 -899 -2,486 -372 1,367 -1,297 -2,506 -3,799 3 Net purchases, or sales (-) -1,825 10,232 -13,356 -937 -2,543 -336 1,315 -1,334 -2,452 -3,756 4 Foreign countries -3,350 471 -7,587 -666 -1,048 -590 -12 -1,379 -1,160 -1,417 5 Europe -281 -708 -1,055 -85 -189 32 -25 -175 -148 -160 6 France 218 -830 -212 6 -57 -66 -41 -119 2 -87 7 Germany -535 167 -382 -25 -20 -83 -30 -107 -48 -61 8 Netherlands -2,243 -3,274 -2,450 -221 -347 -198 -170 -253 -126 -211 9 Switzerland -954 3,729 -3,016 -99 -200 -114 252 -637 -718 -690 10 United Kingdom 1,087 -845 395 -212 -101 88 174 330 210 156 11 Canada 1,238 3,089 -1,348 -27 90 -14 -90 -234 -218 -357 12 Latin America and Caribbean . -2,474 3,531 -1,766 116 -593 -85 -36 187 -437 -559 13 Middle East1 1,365 3,586 -2,676 -55 -904 243 1,056 -69 -712 -1,515 14 Other Asia 1,922 3,340 -2,328 -92 -750 212 851 22 -737 -1,133 15 Japan 188 131 -41 -2 0 -7 13 16 1 -31 16 Africa 121 268 -334 -91 13 30 211 -186 -135 -35 17 Other countries 18 Nonmonetary international and regional organizations -176 -234 66 38 57 -37 52 37 -55 -43 BONDS2 86,381 120,540 97,458 8,355 8,467 12,572 10,923 11,846' 7,484 8,741 19 Foreign purchases 58,417 86,510 83,686 7,643 6,347 8,456 7,558 12,41 1' 9,354 7,412 20 Foreign sales 27,964 34,031 13,772 712 2,120 4,116 3,365 -564r -1,870 1,329 21 Net purchases, or sales (-) ... 28,506 33,678 14,221 705 2,195 4,084 3,327 —534r -1,900 1,565 22 Foreign countries 17,239 19,848 9,222 864 781 3,380 1,996 760' -819 708 23 Europe 143 372 311 -58 108 293 54 -40 -103 -74 24 France 1,344 -238 -200 -40 -39 82 33 172 3 -29 25 Germany 1,514 850 16 -2 33 37 37 -15' -71 35 26 Netherlands 505 -165 496 59 83 186 570 -346 0 -84 27 Switzerland 13,084 18,459 8,432 1,013 495 2,761 1,145 776 -275 412 28 United Kingdom 711 1,116 1,879 353 198 292 70 91 -87 127 29 Canada 1,931 3,686 3,346 411 508 578 273 -103 -208 198 30 Latin America and Caribbean . -178 -182 123 -2 251 -120 17 -178' -65 -4 31 Middle East1 8,900 9,063 -146 -993 440 11 999 -986 -692 588 32 Other Asia 7,686 6,331 -202 -1,044 331 -131 930 -632 -871 361 33 Japan -8 56 90 48 8 2 -4 -1 5 2 34 Africa -89 91 -294 24 9 -59 -24 -118 -34 -53 35 Other countries 36 Nonmonetary international and regional organizations — -542 353 -449 6 -76 32 39 -31 30 -237 Foreign securities 37 Stocks, net purchases, or sales (-)3 -1,959 -13,097 -7,348 -869 -2,422 -2,756 -1,117 -135' 442 -190 3 3 8 9 F F o o r r e e i i g g n n p sa u l r e c s h 3 ases 7 77 5 , , 3 3 1 5 5 6 1 12 0 2 9 , , 8 7 8 8 6 9 1 1 0 1 5 2 , , 0 4 9 3 1 9 9 8 , , 2 3 3 6 7 8 1 9 2 , , 7 2 8 0 5 7 1 1 1 3 , , 0 7 2 8 7 3 1 12 1 , , 4 3 9 7 3 6 1 1 2 2 , , 3 5 7 1 4 0 r r 7 7 , , 0 5 8 2 3 6 9 9 , , 5 3 8 9 2 2 4 4 0 1 Bo F n o d r s e , ig n n e t p p u u r r c c h h a a s s e e s s, or sales (-) 2 - 1 7 8 , , 4 5 3 2 4 1 2 - 3 6 4 , , 0 2 4 1 9 5 - 2 1 4 8 7 , , 6 4 8 9 0 9 - 2 1 0 , , 8 1 3 8 0 4 - 2 1 5 , , 8 8 6 7 7 9 - 2 2 5 , , 0 6 3 5 0 8 23 - , 4 3 0 6 0 7 29,8 4 26 8 r r 25 -5 ,7 9 4 9 6 - 3 2 5 , , 7 2 9 8 3 0 42 Foreign sales 225,955 240,264 266,179 22,015 27,746 27,688 23,767 29,778' 26,346 38,073 43 Net purchases, or sales (-), of stocks and bonds -9,393 -19,145 -26,028 -2,699 -4,289 -4,786 -1,517 -87' -157 -2,983 44 Foreign countries -9,873 -19,178 -24,060 -2,849 -4,085 -4,333 -1,547 -531' -432 -2,179 45 Europe -7,864 -17,811 -8,842 -666 -1,888 -3,646 -383 -1,297' -78 -750 4 4 4 4 5 8 9 6 7 0 A A O C La s a f th r i t n a i i e a n c r d a A a c o m u e n r t i r c i a e s a nd Caribbean -3 - 1 , 5 - 7 , 9 3 5 7 4 7 8 4 1 7 9 4 -4 2 - , , 2 1 5 4 4 8 4 9 2 6 0 0 3 6 - - - 6 5 2 - , , , 4 - 4 3 9 9 6 1 0 3 6 8 2 8 5 -1 - - , 1 3 - 7 1 2 7 4 9 5 8 1 1 7 4 -1 - - , 3 7 4 2 3 2 0 5 1 1 3 6 2 -1 - , 2 0 4 1 1 7 1 8 9 3 8 8 0 - - - - 3 2 2 3 -8 3 0 2 2 3 0 1 2 8 - 6 1 - 6 6 0 8 6 4 5 6 7 ' ' ' ' - - 3 4 3 - 2 0 6 1 4 3 1 2 2 - - 8 - 6 2 8 % 8 2 5 1 4 9 51 Nonmonetary international and regional organizations 480 33 -1,968 150 -205 -453 30 444 275 -804 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 • February 1991 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1990 1990 Country or area 1988 1989 Jan.- Apr. May June July Aug. Sept. Oct." Oct. Transactions, net purchases or sales (-) during period1 1 Estimated total2 48,832 54,269 7,896 3,224 -2,744 3,554 5,488 4,609 936' -583 2 Foreign countries2 48,170 52,367 8,123 4,215 -3,154 3,249 5,331 3,968 1,293' -999 3 Europe2 14,319 36,286 12,155 6,150 -3,787 2,587 3,643 -2,128 5,021' 263 4 Belgium-Luxembourg 923 1,048 167 458 115 270 179 -395 -95 82 5 Germany -5,268 7,904 3,498 633 306 -1,061 -1 1,424 633 581 6 Netherlands -356 -1,141 610 749 -263 313 196 1,253 956 -454 8 7 S S w w e it d z e e n r lan .. d h2 -1 - , 3 0 2 7 3 4 1, 6 0 9 9 3 7 - 1 8 5 7 0 4 2 2 6 2 4 - - 1 2 8 5 9 4 - - 3 1 4 9 -7 1 9 3 9 3 - -1 2 2 6 8 6 - 5 3 4 3 8 ' 6 1 1 6 7 3 9 United Kingdom 9,640 20,198 -806 2,271 -3,545 1,894 1,051 -3,776 1,599 -1,759 10 Other Western Europe 10,786 6,508 8,597 1,344 43 1,223 2,884 -251 1,407 1,033 11 Eastern Europe -10 -21 17 6 0 0 0 11 0 0 12 Canada 3,761 701 -4,247 110 -1,752 367 1,418 1,177 -868 -637 13 Latin America and Caribbean 713 490 9,931 2,134 478 914 1,934 1,319 -1,953 4,676 14 Venezuela -109 311 -100 -49 71 48 -1 0 -49 -1 15 Other Latin America and Caribbean 1,130 -297 2,933 -35 610 1,021 1,060 295 -1,157 591 16 Netherlands Antilles -308 475 7,098 2,218 -204 -154 874 1,023 -747 4,086 17 Asia 27,603 13,335 -9,934 -3,880 2,026 -1,086 -1,672 3,304 -1,751 -5,071 18 Japan 21,750 1,719 -11,198 -6,111 2,234 -469 161 2,376 -2,092 -3,938 19 Africa -13 116 327 -4 -8 52 17 57 151 83 20 All other 1,786 1,439 -108 -294 -110 416 -9 239 692 -313 21 Nonmonetary international and regional organizations 661 1,902 -227 -991 410 305 158 641 -357 416 22 International 1,106 1,473 219 -528 403 462 -25 444 -154 355 23 Latin America regional -31 231 -94 74 25 -109 25 25 -75 -59 Memo 24 Foreign countries 48,170 52,367 8,123 4,215 -3,154 3,249 5,331 3,968 1,293' -999 25 Official institutions 26,624 26,835 11,291 5,066 -2,384 924 724 6,794 3,799' 1,221 26 Other foreign2 21,546 25,532 -3,167 -851 -770 2,325 4,607 -2,826 -2,506' -2,220 Oil-exporting countries 27 Middle East3 1,963 8,148 -519 668 -188 -439 -2,095 -365 241 -1,247 28 Africa4 1 -1 -0 0 0 0 0 0 0 0 1. Estimated official and private transactions in marketable U.S. Treasury 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and securities with an original maturity of more than 1 year. Data are based on United Arab Emirates (Trucial States). monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and 4. Comprises Algeria, Gabon, Libya, and Nigeria, notes held by official institutions of foreign countries. 2. Includes U.S. Treasury notes publicly issued to private foreign residents denominated in foreign currencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Interest and Exchange Rates A69 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per year Rate on Dec. 31, 1990 Rate on Dec. 31, 1990 Rate on Dec. 31, 1990 Country Country e M ffe o c n t t i h v e Percent e M ffe o c n t t i h v e e M ffe o c n t t i h v e 6.5 Oct. 1989 France 9.25 Nov. 1990 Norway 8.0 June 1983 10.5 Nov. 1989 Germany, Fed. Rep. of. 6.0 Oct. 1989 Switzerland 6.0 Oct. 1989 11.72 Dec. 1990 Italy 12.5 May 1990 United Kingdom 10.5 Oct. 1989 Japan 6.0 Aug. 1990 Netherlands 7.25 Nov. 1989 1. As of the end of February 1981, the rate is that at which the Bank of France or makes advances against eligible commercial paper and/or government comdiscounts Treasury bills for 7 to 10 days. mercial banks or brokers. For countries with more than one rate applicable to 2. Minimum lending rate suspended as of Aug. 20, 1981. such discounts or advances, the rate shown is the one at which it is understood the NOTE. Rates shown are mainly those at which the central bank either discounts central bank transacts the largest proportion of its credit operations. 3.27 FOREIGN SHORT-TERM INTEREST RATES Percent per year, averages of daily figures 1990 CCoouunnttrryy,, oorr ttyyppee 11998888 11998899 11999900 June July Aug. Sept. Oct. Nov. Dec/ 1 Eurodollars 7.85 9.16 8.16r 8.23 8.09 7.99 8.07 8.06 8.04 7.87 ? United Kingdom 10.28 13.87 14.73 14.95 14.92 14.95 14.88 14.02 13.57 13.75 3 9.63 12.20 13.00r 13.76 13.58 13.13 12.63 12.58 12.36 11.95 4 Germany 4.28 7.04 8.41r 8.24 8.17 8.36 8.39 8.51 8.79 9.17 5 Switzerland 2.94 6.83 8.71 8.71 8.81 8.71 8.11 7.88 8.39 8.65 6 Netherlands 4.72 7.28 8.57 8.26 8.16 8.44 8.42 8.39 8.73 9.27 7 France 7.80 9.27 10.20 9.94 9.91 10.03 10.24 9.92 9.88 10.14 8 11.04 12.44 12.IT 11.33 11.38 11.49 10.65 11.40 12.42 13.45 9 Belgium 6.69 8.65 9.70 9.63 9.30 9.30 9.04 8.89 9.03 9.81 10 Japan 4.43 5.39 7.75 7.41 7.68 8.02 8.37 8.26 8.35 8.27 NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, CD rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 International Statistics • February 1991 3.28 FOREIGN EXCHANGE RATES' Currency units per dollar 1990 CCoouunnttrryy//ccuurrrreennccyy 11998888 11998899 11999900 July Aug. Sept. Oct. Nov. Dec. 1 Australia/dollar2 78.409 79.186 78.069 79.076 80.871 82.512 80.060 77.290 77.019 2 Austria/schilling 12.357 13.236 11.331 11.520 11.044 11.044 10.719 10.451 10.539 3 Belgium/franc 36.785 39.409 33.424 33.715 32.280 32.282 31.373 30.647 31.014 4 Canada/dollar 1.2306 1.1842 1.1668 1.1570 1.1448 1.1583 1.1600 1.1635 1.1603 5 China, P.R./yuan 3.7314 3.7673 4.7921 4.7339 4.7339 4.7342 4.7339 4.9714 5.2352 6 Denmark/krone 6.7412 7.3210 6.1899 6.2339 6.0033 5.9961 5.8117 5.6946 5.7735 7 Finland/markka 4.1933 4.2963 3.8300 3.8386 3.7051 3.7113 3.6187 3.5644 3.6341 8 France/franc 5.9595 6.3802 5.4467 5.4924 5.2680 5.2575 5.1032 5.0020 5.0895 9 Germany/deutsche mark 1.7570 1.8808 1.6166 1.6375 1.5702 1.5701 1.5238 1.4857 1.4982 10 Greece/drachma 142.00 162.60 158.59 160.59 154.82 154.93 153.17 152.27 156.08 11 Hong Kong/dollar 7.8072 7.8008 7.7899 7.7704 7.7707 7.7647 7.7722 7.7951 7.8034 12 India/rupee 13.900 16.213 17.492 17.412 17.347 17.860 18.074 18.098 18.127 13 Ireland/punt 152.49 141.80 165.76 163.75 170.86 170.91 176.04 180.18 177.77 14 Italy/lira 1,302.39 1,372.28 1,198.27 1,199.65 1,157.07 1,172.87 1,141.62 1,117.04 1,129.26 15 Japan/yen 128.17 138.07 145.00 149.04 147.46 138.44 129.59 129.22 133.89 16 Malaysia/ringgit 2.6190 2.7079 2.7057 2.7051 2.6956 2.6959 2.6995 2.6949 2.7030 17 Netherlands/guilder 1.9778 2.1219 1.8215 1.8452 1.7692 1.7699 1.7180 1.6761 1.6904 18 New Zealand/dollar2 65.560 59.354 59.619 59.147 61.294 62.077 61.129 61.120 59.574 19 Norway/krone 6.5243 6.9131 6.2541 6.2925 6.0810 6.0735 5.8241 5.79% 5.8717 20 Portugal/escudo 144.27 157.53 142.70 143.93 138.71 139.18 134.41 130.87 132.82 21 Singapore/dollar 2.0133 1.9511 1.8134 1.8193 1.7905 1.7671 1.7257 1.7100 1.7275 22 South Africa/rand 2.2770 2.6214 2.5885 2.6253 2.5734 2.5712 2.5445 2.5247 2.5395 23 South Korea/won 734.52 674.29 710.64 718.75 718.26 717.87 717.76 717.03 718.58 24 Spain/peseta 116.53 118.44 101.% 100.41 %.90 98.49 95.59 94.07 95.75 25 Sri Lanka/rupee 31.820 35.947 40.078 40.018 40.007 39.953 40.285 40.355 40.244 26 Sweden/krona 6.1370 6.4559 5.9231 5.9470 5.7754 5.7663 5.6411 5.5633 5.6338 27 Switzerland/franc 1.4643 1.6369 1.3901 1.3924 1.3076 1.3069 1.2818 1.2569 1.2814 28 Taiwan/dollar 28.636 26.407 26.918 27.163 27.291 27.302 27.288 27.245 27.162 29 Thailand/baht 25.312 25.725 25.609 25.706 25.579 25.376 25.130 25.078 25.208 30 United Kingdom/pound2 178.13 163.82 178.41 180.98 190.13 187.94 194.56 196.42 192.19 MEMO 31 United States/dollar3 92.72 98.60 89.09 89.68 86.55 86.10 83.43 82.12 83.35 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 about IPCs Individuals, partnerships, and corporations 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 when SMSAs Standard metropolitan statistical areas the smallest unit given is millions) . . . Cell not applicable General Information Minus signs are used to indicate (1) a decrease, (2) a negative tions of the Treasury. "State and local government" also infigure, or (3) an outflow. cludes municipalities, special districts, and other political "U.S. government securities" may include guaranteed issues subdivisions. of U.S. government agencies (the flow of funds figures also In some of the tables, details do not add to totals because of include not fully guaranteed issues) as well as direct obliga- rounding. STATISTICAL RELEASES—List Published Semiannually, with Latest BULLETIN Reference Issue Page Anticipated schedule of release dates for periodic releases December 1990 A92 SPECIAL TABLES—Published Irregularly, with Latest BULLETIN Reference Title and Date Issue Page Assets and liabilities of commercial banks September 30, 1989 February 1990 A72 December 31, 1989 June 1990 A72 March 31,1990 January 1991 A72 June 30, 1990 February 1991 A72 Terms of lending at commercial banks November 1989 March 1990 A79 February 1990 September 1990 A73 May 1990 December 1990 A72 August 1990 December 1990 A77 Assets and liabilities ofU. S. branches and agencies of foreign banks December 31, 1989 August 1990 A72 March 31,1990 September 1990 A78 June 30,1990 December 1990 A82 September 30, 1990 February 1991 A78 Pro forma balance sheet and income statements for priced service operations June 30,1989 February 1990 A78 September 30,1989 March 1990 A88 March 31, 1990 September 1990 A82 June 30, 1990 October 1990 A72 Special tables follow. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Special Tables • February 1991 4.20 DOMESTIC AND FOREIGN OFFICES, Insured Commercial Bank Assets and Liabilities1-2 Consolidated Report of Condition, June 30, 1990 Millions of dollars Banks with domestic Banks with foreign offices offices only IItteemm TToottaall Total Foreign Domestic Over 100 Under 100 1 Total assets6 3,343,383 1,916,755 442,696 1,530,236 1,049,743 376,885 2 Cash and balances due from depository institutions 314,780 222,912 105,141 117,771 66,951 24,917 3 Cash items in process of collection, unposted debits, and currency and coin < > 84,702 1,619 83,083 32,192 4 Cash items in process of collection and unposted debits n.a. n.a. 70,373 23,358 i 5 Currency and coin n.a. n.a. 12,710 8,834 n.a. 6 Balances due from depository institutions in the United States n.a. 32,851 20,445 12,406 19,932 1 7 Balances due from banks in foreign countries and foreign central banks 85,525 82,898 2,628 2,156 1 8 Balances due from Federal Reserve Banks 19,834 179 19,655 12,671 1 MEMO 9 Noninterest-bearing balances due from commercial banks in the United States (included in balances due from depository institutions in the United States) n.a. n.a. 8,064 14,124 9,128 10 Total securities, loans and lease financing receivables, net 2,763,965 1,493,413 n.a. n.a. 934,613 335,939 11 Total securities, book value 593,273 251,868 34,823 217,044 225,943 115,462 12 U.S. Treasury securities and U.S. government agency and corporation obligations 409,822 157,395 2,993 154,401 116622,,779911 8899,,663377 13 U.S. Treasury securities n.a. 47,841 892 46,949 69,054 n.a. 14 U.S. government agency and corporation obligations n a. 109,553 2,101 107,452 93,737 n.a. 15 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 137,838 76,290 1,687 74,603 43,130 18,418 16 All other n.a. 33,263 415 32,849 50,606 n.a. 17 Securities issued by states and political subdivisions in the United States 87,218 32,870 1,456 31,413 37,410 16,938 18 Other domestic debt securities n a. 28,064 1,756 26,308 21,563 n.a. 19 All holdings of private certificates of participation in pools of residential mortgages 3,714 1,936 157 1,779 11,,331199 445599 20 All other domestic debt securities 53,538 26,129 1,600 24,529 20,243 7,166 21 Foreign debt securities n.a. 29,681 27,782 1,899 409 n.a. 22 Equity securities i,891 3,858 836 3,022 3,771 1,262 23 Marketable 4,270 1,060 257 804 2,270 939 24 Investments in mutual funds 1,941 164 13 151 896 881 2.5 Other 2,778 1,048 244 804 1,567 163 26 Less: Net unrealized loss 449 152 0 152 193 104 27 Other equity securities 4,621 2,798 579 2,219 1,500 323 28 Federal funds sold and securities purchased under agreements to resell 149,482 77,344 638 76,706 49,671 22,466 29 Federal funds sold 131,956 63,508 n.a. n.a. 46,209 22,239 30 Securities purchased under agreements to resell 17,526 13,836 n.a. n.a. 3,462 228 31 Total loans and lease financing receivables, gross 2,085,222 1,205,024 211,129 993,895 676,921 203,276 32 LESS: Unearned income on loans 13,985 5,815 1,499 4,316 6,165 2,006 33 Total loans and leases (net of unearned income) 2,071,236 1,199,209 209,630 989,579 670,757 201,270 34 LESS: Allowance for loan and lease losses 49,771 34,755 n.a. n.a. 11,757 3,259 35 LESS: Allocated transfer risk reserves 255 253 n.a. n.a. 1 1 36 EQUALS: Total loans and leases, net 2,021,211 1,164,201 n.a. n.a. 658,999 198,011 Total loans, gross, by category 37 Loans secured by real estate 800,808 400,928 25,427 375,501 229988,,995500 100,930 38 Construction and land development f 4 I 87,632 39,473 7,738 4 3 0 9 F 1 a -4 r m fa la m n i d l y residential properties T 1 T 1 17 2 0 , , 1 4 6 3 3 5 14 5 9 , , 2 8 8 9 8 1 55 9 , , 4 6 0 7 9 9 41 Revolving, open-end loans, extended under lines of credit n.a. n.a. n.a. 29,512 22,681 3,046 42 All other loans 1 1 140,923 127,210 52,363 43 Multifamily (5 or more) residential properties 1 1 11,358 7,844 1,948 44 Nonfarm nonresidential properties < • • 103,912 96,455 26,156 45 Loans to depository institutions 51,966 44,663 18,868 25,795 6,904 399 46 To commercial banks in the United States n.a. 21,401 1,103 20,298 6,323 n.a. 47 To other depository institutions in the United States n.a. 1,771 147 1,624 525 n.a. 48 To banks in foreign countries n.a. 21,491 17,618 3,872 56 n.a. 49 Loans to finance agricultural production and other loans to farmers 32,217 5,834 318 5,517 8,150 18,233 50 Commercial and industrial loans 618,390 432,758 103,285 329,473 145,904 39,728 51 To U.S. addressees (domicile) n a. 350,442 23,351 327,092 145,558 n.a. 52 To non-U.S. addressees (domicile) n a. 82,316 79,935 2,381 346 n.a. 53 Acceptances of other banks 2,971 957 560 397 1,088 926 54 U.S. banks n.a. 267 26 241 n.a. n.a. 55 Foreign banks n.a. 689 534 156 n.a. n.a. 56 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 388,953 162,204 16,690 145,515 187,637 39,112 57 Credit cards and related plans 123,039 48,472 n.a. n.a. 72,451 2,116 58 Other (includes single payment and installment) 265,914 113,732 n.a. n.a. 115,186 36,995 59 Obligations (other than securities) of states and political subdivisions in the U.S. (includes nonrated industrial development obligations) 37,013 22,093 224466 21,847 1133,,337722 11,,554499 60 1,092 626 88 538 408 59 61 35,921 21,467 158 21,309 12,964 1,490 62 All other loans 115,970 104,706 41,709 62,997 9,444 1,819 63 Loans to foreign governments and official institutions n a. 25,193 23,620 1,573 128 n.a. 64 Other loans n a. 79,514 18,089 61,425 9,316 n.a. 65 Loans for purchasing and carrying securities n a. n.a. n.a. 14,602 1,466 n.a. 66 All other loans n.a. n.a. n.a. 46,823 7,850 n.a. 67 Lease financing receivables 36,934 30,880 4,025 26,855 5,473 581 68 Assets held in trading accounts 49,841 48,299 24,650 23,619 1,365 178 69 Premises and fixed assets (including capitalized leases) 49,356 26,769 I n.a. 16,188 6,399 70 Other real estate owned 16,208 8,627 T n.a. 5,339 2,243 71 Investments in unconsolidated subsidiaries and associated companies 2,812 2,381 1 n.a. 376 55 72 Customers' liability on acceptances outstanding 23,802 23,399 n.a. n.a. 388 14 73 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs n.a. n.a. 1 33,309 n.a. n.a. 74 Intangible assets 8,722 4,993 1 n.a. 3,468 261 75 Other assets 113,897 85,962 ? n.a. 21,055 6,879 Digitized for FRASER 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 Total Foreign Domestic Over 100 Under 10 76 Total liabilities, limited-life preferred stock, and equity capital ,343,383 1,916,755 n. a. n.a. 1,049,743 376,885 77 Total liabilities7 ,128,309 1,813,706 442,487 1,427,396 971,899 342,704 78 Limited-life preferred stock 83 0 n.a. n.a. 81 1 79 Total deposits ,573,067 1,381,905 330,005 1,051,900 856,985 334,176 80 Individuals, partnerships, and corporations > 196,108 965,357 792,141 306,573 81 U.S. government > 2,577 1,652 579 82 States and political subdivisions in the United States 37,843 44,631 22,691 83 Commercial banks in the United States n.a. n.a. n.a. 22,708 9,111 1,218 84 Other depository institutions in the United States 5,402 2,679 912 85 Banks in foreign countries 6,337 161 n.a. 86 Foreign governments and official institutions 23,328 22,243 1,085 272 n.a. 87 Certified and official checks 19,835 11,341 751 10,590 6,338 2,156 88 All other8 n. a. n.a. 110,904 n.a. n.a. 48 89 Total transaction accounts 318,952 222,788 85,788 90 Individuals, partnerships, and corporations 268,854 195,541 75,918 91 U.S. government 1,648 1,342 477 92 States and political subdivisions in the United States 9,713 11,854 6,338 93 Commercial banks in the United States n a. n.a. n.a. 18,027 6,363 636 94 Other depository institutions in the United States 3,589 1,204 244 95 Banks in foreign countries 5,787 137 n.a. 96 Foreign governments and official institutions 744 9 n.a. 97 Certified and official checks 10,590 6,338 2,156 98 All other n.a. n.a. 18 99 Demand deposits (included in total transaction accounts) 240,481 136,991 44,872 100 Individuals, partnerships, and corporations 193,000 116,421 39,399 101 U.S. government 1,632 1,321 466 102 States and political subdivisions in the United States 7,117 5,216 1,962 103 Commercial banks in the United States 18,027 6,359 635 104 Other depository institutions in the United States 3,589 1,189 236 105 Banks in foreign countries 5,783 137 n.a. 106 Foreign governments and official institutions 743 9 n.a. 107 Certified and official checks 10,590 6,338 2,156 108 All other n.a. n.a. 18 109 Total nontransaction accounts 732,948 634,198 248,388 110 Individuals, partnerships, and corporations n.a. n.a. n.a. 696,503 5%,600 230,655 111 U.S. government 929 310 102 112 States and political subdivisions in the United States 28,130 32,777 16,352 113 Commercial banks in the United States 4,681 2,749 582 114 U.S. branches and agencies of foreign banks 424 232 n.a. 115 Other commercial banks in the United States 4,257 2,517 n.a. 116 Other depository institutions in the United States 1,813 1,475 668 117 Banks in foreign countries 551 24 n.a. 118 Foreign branches of other U.S. banks 9 20 n.a. 119 Other banks in foreign countries 542 4 n.a. 120 Foreign governments and official institutions 341 262 n.a. 121 All other n.a. n.a. 29 122 Federal funds purchased and securities sold under agreements to repurchase.. 267,599 201,337 795 200,542 63,247 3,015 123 Federal funds purchased 167,508 134,803 n.a. n.a. 31,368 1,337 124 Securities sold under agreements to repurchase 100,091 66,535 n a. n.a. 31,879 1,677 125 Demand notes issued to the U.S. Treasury n. a. n.a. n. a. 23,139 4,929 528 126 Other borrowed money 121,698 92,037 35,822 56,215 28,829 833 127 Banks liability on acceptances executed and outstanding 23,905 23,502 6.426 18,077 388 14 128 Notes and debentures subordinated to deposits 19,593 17,555 n a. n.a. 1,917 121 129 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs... n.a. n a. n a. 22,869 n.a. n.a. 130 All other liabilities 93,851 74,230 n a. n.a. 15,604 4,017 131 Total equity capital9 214,991 103,049 n.a. n.a. 77,763 34,179 MEMO 132 Holdings of commercial paper included in total loans, gross 1,040 681 359 1,263 n.a. 133 Total individual retirement accounts (IRA) and Keogh plan accounts 53,823 50,397 18,155 134 Total brokered deposits 51,185 18,901 1,090 135 Total brokered retail deposits 18,757 13,147 998 136 Issued in denominations of $100,000 or less 4,6% 3,485 872 137 Issued in denominations greater than $100,000 and participated out by the n.a. 9,661 126 broker in shares of $100,000 or less Savings deposits 194,587 131,135 37,349 138 Money market deposit accounts (MMDAs) 86,147 79,338 29,085 139 Other savings deposits (excluding MMDAs) 237,782 293 141,066 140 Total time deposits of less than $100,000 n.a. n.a. n.a. 182,521 125,342 39,471 141 Time certificates of deposit of $100,000 or more 31,912 5,113 1,408 142 Open-account time deposits of $100,000 or more 77,364 83,713 39,485 143 All NOW accounts (including Super NOW) 811,419 719,994 289,304 144 Total time and savings deposits Quarterly averages %2,968 661,974 197,012 145 Total loans 146 Obligations (other than securities) of states and political subdivisions 22,384 13,414 n.a. in the United States 79,193 84,886 40,686 147 Transaction accounts in domestic offices (NOW accounts, ATS accounts, and telephone and preauthorized transfer accounts) 193,830 129,995 37,185 Nontransaction accounts in domestic offices 83,484 77,993 28,593 148 Money market deposit accounts (MMDAs) 184,293 125,989 39,140 149 Other savings deposits 262,763 288,361 141,023 150 Time certificates of deposit of $100,000 or more 151 All other time deposits 152 Number of banks ,480 235 n.a. 2,647 9,598 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Special Tables • February 1991 4.21 DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or more or with foreign offices1-2-6 Consolidated Report of Condition, June 30, 1990 Millions of dollars Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 1 Total assets6 2,579,980 2,029,334 1,634,297 395,037 550,646 2 Cash and balances due from depository institutions 184,722 150,998 121,387 29,611 33,725 3 Cash items in process of collection and unposted debits 93,731 83,559 68,657 14,902 10,172 4 Currency and coin 21,544 17,658 14,785 2,873 3,887 5 Balances due from depository institutions in the United States 32,338 20,285 16,100 4,185 12,053 6 Balances due from banks in foreign countries and foreign central banks 4,783 3,510 2,697 814 1,273 7 Balances due from Federal Reserve Banks 32,326 25,985 19,148 6,837 6,341 8 Total securities, loans and lease financing receivables, (net of unearned income) 2,229,701 1,737,521 1,406,655 330,866 492,180 9 Total securities, book value 442,988 332,408 258,933 73,475 110,580 10 U.S. Treasury securities 116,003 80,768 64,526 16,243 35,235 11 U.S. government agency and corporation obligations 201,189 159,266 126,096 33,171 41,922 12 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 117,734 100,288 79,789 20,498 17,446 13 Mother 83,455 58,979 46,307 12,672 24,476 14 Securities issued by states and political subdivisions in the United States 68,824 52,532 39,761 12,771 16,291 15 Other domestic debt securities 47,871 34,417 25,012 9,405 13,454 16 All holdings of private certificates of participation in pools of residential mortgages 3,099 2,244 1,809 435 854 17 All other 44,773 32,172 23,203 8,970 12,600 18 Foreign debt securities 2,308 1,937 804 1,132 371 19 Equity securities 6,793 3,488 2,734 754 3,305 20 Marketable 3,074 729 568 162 2,344 21 Investments in mutual funds 1,047 510 430 80 537 T> Other 2,371 294 187 107 2,077 23 Less: Net unrealized loss 345 75 49 26 270 24 Other equity securities 3,719 2,759 2,166 592 961 25 Federal funds sold and securities purchased under agreements to resell10 126,377 103,005 78,959 24,047 23,371 26 Federal funds sold 46,209 29,500 25,483 4,017 16,709 27 Securities purchased under agreements to resell 3,462 2,380 2,017 364 1,082 28 Total loans and lease financing receivables, gross 1,670,817 1,309,895 1,075,036 234,859 360,921 29 LESS: Unearned income on loans 10,480 7,787 6,272 1,515 2,693 30 Total loans and leases (net of unearned income) 1,660,336 1,302,108 1,068,764 233,344 358,228 Total loans, gross, by category 31 Loans secured by real estate 674,451 551122,,227755 437,081 7755,,119944 116622,,117766 32 Construction and land development 127,105 101,408 84,885 16,523 25,697 33 Farmland 7,451 4,855 4,274 581 2,596 34 1-4 family residential properties 320,326 240,884 205,628 35,256 79,442 35 Revolving, open-end and extended under lines of credit 52,193 40,435 34,013 6,421 11,759 36 All other loans 268,132 200,449 171,615 28,834 67,683 37 Multifamily (5 or more) residential properties 19,201 14,888 13,075 1,813 4,313 38 Nonfarm nonresidential properties 200,367 150,240 129,218 21,022 50,128 39 Loans to commercial banks in the United States 26,621 21,946 15,453 6,493 4,675 40 Loans to other depository institutions in the United States 2,149 1,946 1,780 165 204 41 3,928 3,753 1,833 1,921 175 42 Loans to finance agricultural production and other loans to farmers 13,666 10,186 9,246 940 3,480 43 475,377 388,311 309,932 78,379 87,065 44 To U.S. addressees (domicile) 472,649 386,211 308,300 77,911 86,438 45 To non-U.S. addressees (domicile) 2,727 2,100 1,632 469 627 46 Acceptances of other banks11 1,484 799 674 125 685 47 Of U.S. banks 508 305 253 53 202 48 Of foreign banks 237 160 134 26 78 49 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 333,152 246,382 207,172 39,210 86,769 50 Credit cards and related plans 72,451 41,823 39,603 2,220 30,628 51 Other (includes single payment and installment) 115,186 70,782 59,676 11,107 44,404 52 Loans to foreign governments and official institutions 1,701 1,636 1,188 448 65 53 Obligations (other than securities) of states and political subdivisions in the United States 35,218 29,533 21,920 7,612 5,686 54 945 759 548 211 186 55 34,273 28,774 21,372 7,402 5,499 56 Other loans 70,741 65,261 45,557 19,703 5,480 57 Loans for purchasing and carrying securities 16,068 15,143 9,266 5,877 925 58 54,673 50,118 36,291 13,826 4,555 59 Lease financing receivables 32,328 27,867 23,199 4,668 4,461 60 Customers' liability on acceptances outstanding 18,024 16,847 13,002 3,845 1,176 61 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs 33,309 28,943 17,916 11,027 4,366 62 147,533 123,967 93,252 30,715 23,566 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A73 4.21—Continued Members Item Total Total National State 63 Total liabilities and equity capital 2,579,980 2,029,334 1,634,297 395,037 64 Total liabilities4 2,399,295 1,891,717 1,525,064 366,653 65 Total deposits 1,908,885 1,477,853 1,211,322 266,531 66 Individuals, partnerships, and corporations 1,757,499 1,357,727 1,115,610 242,117 67 U.S. government 4,229 3,571 3,124 447 68 States and political subdivisions in the United States 82,475 61,442 51,526 9,916 69 Commercial banks in the United States 31,819 28,294 21,800 6,494 70 Other depository institutions in the United States 8,081 6,295 5,319 976 71 Banks in foreign countries 6,498 5,907 3,249 2,659 72 Foreign governments and official institutions 1,357 1,258 914 344 73 Certified and official checks 16,928 13,360 9,781 3,579 74 Total transaction accounts 541,740 433,346 348,480 84,866 75 Individuals, partnerships, and corporations 464,395 367,628 297,718 69,910 76 U.S. government 2,990 2,451 2,132 319 77 States and political subdivisions in the United States 21,567 17,040 14,319 2,721 78 Commercial banks in the United States 24,390 22,468 17,714 4,754 79 Other depository institutions in the United States 4,793 4,053 3,317 735 80 Banks in foreign countries 5,923 5,638 3,056 2,582 81 Foreign governments and official institutions 754 710 443 266 82 Certified and official checks 16,928 13,360 9,781 3,579 83 Demand deposits (included in total transaction accounts) 377,472 307,696 242,437 65,259 84 Individuals, partnerships, and corporations 309,422 248,785 197,359 51,427 85 U.S. government 2,953 2,419 2,101 318 86 States and political subdivisions in the United States 12,333 10,275 8,673 1,602 87 Commercial banks in the United States 24,386 22,465 17,714 4,751 88 Other depository institutions in the United States 4,778 4,045 3,310 735 89 Banks in foreign countries 5,919 5,637 3,056 2,581 90 Foreign governments and official institutions 752 709 443 266 91 Certified and official checks 16,928 13,360 9,781 3,579 92 Total nontransaction accounts 1,367,145 1,044,507 862,843 181,664 93 Individuals, partnerships, and corporations 1,293,104 990,099 817,892 172,207 94 U.S. government 1,239 1,120 992 128 95 States and political subdivisions in the United States 60,907 44,402 37,207 7,195 96 Commercial banks in the United States 7,430 5,826 4,086 1,740 97 U.S. branches and agencies of foreign banks 656 240 73 167 98 Other commercial banks in the United States 6,774 5,586 4,013 1,573 99 Other depository institutions in the United States 3,288 2,243 2,002 241 100 Banks in foreign countries 575 269 192 77 101 Foreign branches of other U.S. banks 29 19 9 10 102 Other banks in foreign countries 546 250 184 67 103 Foreign governments and official institutions 603 548 471 77 104 Federal funds purchased and securities sold under agreements to repurchase12 263,789 224,332 168,245 56,086 105 Federal funds purchased 31,368 21,488 17,927 3,561 106 Securities sold under agreements to repurchase 31,879 16,319 14,001 2,317 107 Demand notes issued to the U.S. Treasury 28,067 25,586 18,149 7,437 108 Other borrowed money 85,043 64,642 53,030 11,612 109 Banks liability on acceptances executed and outstanding 18,465 17,289 13,419 3,870 110 Notes and debentures subordinated to deposits 1,917 1,405 1,344 60 111 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs 22,869 19,622 18,037 1,585 112 Remaining liabilities 93,127 80,611 59,554 21,057 113 Total equity capital® 180,685 137,617 109,233 28,383 MEMO 114 Holdings of commercial paper included in total loans, gross 1,621 718 623 95 115 Total individual retirement accounts (IRA) and Keogh plan accounts 104,220 80,998 67.185 13,813 116 Total brokered deposits 70,086 53,407 46,243 7,164 117 Total brokered retail deposits 31,904 21,761 18,285 3,476 118 Issued in denominations of $100,000 or less 8,182 4,306 4,099 207 119 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 23,722 17,455 14.186 3,269 Savings deposits 120 Money market deposit accounts (MMDAs) 325,722 260,086 215,117 44,969 121 Other savings accounts 165,485 128,195 96,026 32,169 122 Total time deposits of less than $100,000 531,052 395,783 336,046 59,737 123 Time certificates of deposit of $100,000 or more 307,862 229,103 195,919 33,184 124 Open-account time deposits of $100,000 or more 37,024 31,341 19,734 11,606 125 All NOW accounts (including Super NOW accounts) 161,077 123,570 104,115 19,455 126 Total time and savings deposits 1,531,413 1,170,157 968,886 201,271 Quarterly averages 127 Total loans 1,624,942 1,275,589 1,047,980 227,609 128 Obligations (other than securities) of states and political subdivisions in the United States ... 35,798 30,191 22,187 8,004 129 Transaction accounts (NOW accounts, ATS accounts, and telephone preauthorized transfer accounts) 164,079 125,963 106,141 19,821 Nontransaction accounts 130 Money market deposit accounts (MMDAs) 323,826 258,580 213,337 45,243 131 Other savings deposits 161,477 124,732 93,442 31,290 132 Time certificates of deposits of $100,000 or more 310,282 231,004 196,746 34,257 133 All other time deposits 551,124 415,018 344,967 70,051 134 Number of banks 2,882 1,589 1,332 257 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Special Tables • February 1991 4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities1-2-6 Consolidated Report of Condition, June 30, 1990 Millions of dollars Members NNoonn-- Item mmeemmbbeerrss Total National State 1 Total assets6 2,956,864 2,178,639 1,752,964 425,674 778,226 2 Cash and balances due from depository institutions 209,639 161,250 129,607 31,643 48,389 3 Currency and coin 24,806 18,972 15,840 3,132 5,833 4 Noninterest-bearing balances due from commercial banks 31,317 17,575 13,822 3,754 13,742 5 Other 153,517 124,703 99,945 24,758 28,814 6 Total securities, loans, and lease financing receivables (net of unearned income) 2,568,899 1,871,495 1,512,990 358,505 697,404 7 Total securities, book value 558,449 377,166 295,533 81,634 181,283 8 U.S. Treasury securities and U.S. government agency and corporation obligations 406,829 274,799 219,060 55,739 132,030 9 Securities issued by states and political subdivisions in the United States 85,762 58,840 44,851 13,989 26,922 10 Other debt securities 57,803 39,452 28,411 11,040 18,352 11 All holdings of private certificates of participation in pools of residential mortgages ... 3,557 2,458 1,952 505 1,099 12 All other 54,249 36,994 26,459 10,535 17,255 13 Equity securities 8,055 4,075 3,210 865 3,980 14 Marketable 4,013 1,080 863 217 2,933 15 Investments in mutual funds 1,928 864 729 135 1,064 16 Other 2,534 328 214 113 2,206 17 Less: Net unrealized loss 449 112 80 32 337 18 Other equity securities 4,042 2,9% 2,347 648 1,046 19 Federal funds sold and securities purchased under agreements to resell1" 148,843 112,857 86,769 26,088 35,986 20 Federal funds sold 68,448 39,244 33,231 6,013 29,204 21 Securities purchased under agreements to resell 3,690 2,488 2,079 409 1,202 22 Total loans and lease financing receivables, gross 1,874,093 1,390,089 1,137,604 252,485 484,004 23 LESS: Unearned income on loans 12,486 8,617 6,915 1,702 3,869 24 Total loans and leases (net of unearned income) 1,861,607 1,381,472 1,130,689 250,783 480,134 Total loans, gross, by category 25 Loans secured by real estate 775,381 551,792 467,894 83,899 223,588 26 Construction and land development 134,844 104,676 87,325 17,351 30,168 27 Farmland 17,130 8,001 6,813 1,188 9,129 28 1-4 family residential properties 375,735 262,870 222,728 40,142 112,864 29 Revolving, open-end loans, and extended under lines of credit 55,239 41,719 34,983 6,736 13,521 30 All other loans 320,495 221,152 187,746 33,406 99,343 31 Multifamily (5 or more) residential properties 21,149 15,590 13,626 1,964 5,559 32 Nonfarm nonresidential properties 226,523 160,655 137,401 23,254 65,868 33 Loans to depository institutions 33,098 27,801 19,188 8,613 5,297 34 Loans to finance agricultural production and other loans to farmers 31,899 16,446 14,268 2,179 15,453 35 Commercial and industrial loans 515,105 404,864 322,545 82,319 110,241 36 Acceptances of other banks 2,411 1,211 1,042 169 1,200 37 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 372,263 262,210 219,682 42,528 110,053 38 Credit cards and related plans 74,567 42,772 40,444 2,329 31,795 39 Other (includes single payment installment) 152,182 85,660 71,344 14,316 66,521 40 Obligations (other than securities) of states and political subdivisions in the United States 36,767 30,093 22,384 7,709 6,674 41 Taxable 1,004 782 568 213 222 42 Tax-exempt 35,763 29,312 21,815 7,4% 6,451 43 All other loans 74,261 67,613 47,265 20,348 6,648 44 Lease financing receivables 32,909 28,059 23,336 4,723 4,850 45 Customers' liability on acceptances outstanding 18,038 16,859 13,012 3,847 1,179 46 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs 33,309 28,943 17,916 11,027 4,366 47 Remaining assets 160,288 129,034 97,356 31,678 31,253 48 Total liabilities and equity capital 2,956,864 2,178,639 1,752,964 425,674 778,226 49 Total liabilities4 2,741,999 2,027,699 1,633,270 394,429 714,300 50 Total deposits 2,243,061 1,610,215 1,316,744 293,471 632,846 51 Individuals, partnerships, and corporations 2,064,072 1,479,443 1,212,547 266,8% 584,629 52 U.S. government 4,807 3,792 3,300 492 1,015 53 States and political subdivisions in the United States 105,165 69,790 58,351 11,439 35,375 54 Commercial banks in the United States 33,037 29,087 22,292 6,795 3,950 55 Other depository institutions in the United States 8,993 6,617 5,571 1,046 2,376 56 Certified and official checks 19,085 14,300 10,503 3,797 4,785 57 Mother 7,903 7,186 4,180 3,006 717 58 Total transaction accounts 627,528 468,579 376,891 91,688 158,949 59 Individuals, partnerships, and corporations 540,314 398,733 322,917 75,815 141,581 60 U.S. government 3,467 2,635 2,276 359 832 61 States and political subdivisions in the United States 27,906 19,363 16,235 3,128 8,543 62 Commercial banks in the United States 25,025 23,028 18,046 4,982 1,998 63 Other depository institutions in the United States 5,037 4,167 3,411 756 870 64 Certified and official checks 19,085 14,300 10,503 3,797 4,785 65 All other 6,695 6,354 3,503 2,851 341 66 Demand deposits (included in total transaction accounts) 422,344 326,659 257,554 69,105 95,685 67 Individuals, partnerships, and corporations 348,820 265,236 210,584 54,652 83,585 68 U.S. government 3,419 2,600 2,242 358 819 69 States and political subdivisions in the United States 14,295 10,989 9,275 1,714 3,306 70 Commercial banks in the United States 25,021 23,024 18,046 4,979 1,996 71 Other depository institutions in the United States 5,014 4,157 3,401 756 857 72 Certified and official checks 19,085 14,300 10,503 3,797 4,785 73 All other 6,690 6,353 3,503 2,850 337 74 Total nontransaction accounts 1,615,533 1,141,636 939,853 201,783 473,897 75 Individuals, partnerships, and corporations 1,523,758 1,080,710 889,629 191,081 443,048 76 U.S. government 1,340 1,158 1,024 134 183 77 States and political subdivisions in the United States 77,260 50,427 42,116 8,310 26,833 78 Commercial banks in the United States 8,012 6,059 4,246 1,813 1,952 79 Other depository institutions in the United States 3,956 2,450 2,160 290 1,506 80 All other 1,208 832 677 155 376 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks All 4.22—Continued Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 81 Federal funds purchased and securities sold under agreements to repurchase12 266,804 225,825 169,303 56,522 40,979 82 Federal funds purchased 32,705 22,158 18,321 3,837 10,547 83 Securities sold under agreements to repurchase 33,557 17,142 14,665 2,477 16,415 84 Demand notes issued to the U.S. Treasury 28,596 25,813 18,331 7,482 2,783 85 Other borrowed money 85,876 64,948 53,288 11,660 20,928 86 Banks liability on acceptances executed and outstanding 18,479 17,300 13,428 3,872 1,179 87 Notes and debentures subordinated to deposits 2,039 1,433 1,365 67 606 88 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs 22,869 19,622 18,037 1,585 3,246 89 Remaining liabilities 97,144 82,166 60,811 21,355 14,978 90 Total equity capital9 214,865 150,939 119,694 31,245 63,926 MEMO 91 Assets held in trading accounts13 25,161 23,822 15,497 8,325 1,340 92 U.S. Treasury securities 9,970 9,792 5,972 3,821 178 93 U.S. government agency corporation obligations 2,792 2,605 2,405 200 187 94 Securities issued by states and political subdivisions in the United States 1,101 1,082 785 297 19 95 Other bonds, notes, and debentures 267 244 31 213 23 % Certificates of deposit 987 962 347 615 25 97 Commercial paper 47 46 46 0 1 98 Bankers acceptances 2,873 2,705 1,464 1,242 167 99 Other 6,167 6,043 4,123 1,921 124 100 Total individual retirement accounts (IRA) and Keogh plan accounts 122,376 87,945 72,756 15,188 34,431 101 Total brokered deposits 71,176 53,676 46,431 7,245 17,500 102 Total brokered retail deposits 32,902 22,005 18,462 3,543 10,897 103 Issued in denominations of $100,000 or less 9,054 4,535 4,265 270 4,519 104 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 23,848 17,470 14,197 3,273 6,379 Savings deposits 105 Money market deposit accounts (MMDAs) 363,071 276,035 227,850 48,185 87,036 106 Other savings deposits 194,569 139,794 105,213 34,581 54,775 107 Total time deposits of less than $100,000 672,118 448,675 377,987 70,688 223,444 108 Time certificates of deposit of $100,000 or more 347,334 245,283 208,654 36,629 102,051 109 Open-account time deposits of $100,000 or more 38,432 31,841 20,141 11,700 6,591 110 All NOW accounts (including Super NOW) 200,562 139,366 117,037 22,328 61,1% 111 Total time and savings deposits 1,820,717 1,283,556 1,059,190 224,366 537,161 Quarterly averages 112 Total loans 1,821,953 1,353,495 1,108,862 244,633 468,459 113 Transaction accounts (NOW accounts, ATS accounts, and telephone and preauthorized transfer accounts) 204,765 142,130 119,362 22,768 62,635 Nontransaction accounts 114 Money market deposit accounts (MMDAs) 361,011 274,462 226,004 48,458 86,549 115 Other savings deposits 190,070 136,139 102,487 33,652 53,931 116 Time certificates of deposit of $100,000 or more 349,422 247,072 209,450 37,622 102,350 117 All other time deposits 692,148 467,798 386,842 80,956 224,350 118 Number of banks 12,480 5,075 4,059 1,016 7,405 1. Effective Mar. 31, 1984, the report of condition was substantially revised for refers to those respondents whose assets, as of June 30 of the previous calendar commercial banks. Some of the changes are as follows: (1) Previously, banks with year, were less than $100 million. (These respondents filed the FFIEC 034 call international banking facilities (IBFs) that had no other foreign offices were report.) considered domestic reporters. Beginning with the Mar. 31, 1984 call report these 6. Since the domestic portion of allowances for loan and lease losses and banks are considered foreign and domestic reporters and must file the foreign and allocated transfer risk reserve are not reported for banks with foreign offices, the domestic report of condition; (2) banks with assets greater than $1 billion have components of total assets (domestic) will not add to the actual total (domestic). additional items reported; (3) the domestic office detail for banks with foreign 7. Since the foreign portion of demand notes issued to the U.S. Treasury is not offices has been reduced considerably; and (4) banks with assets under $25 million reported for banks with foreign offices, the components of total liabilities (foreign) have been excused from reporting certain detail items. will not add to the actual total (foreign). 2. The "n.a." for some of the items is used to indicate the lesser detail available 8. The definition of 'all other' varies by report form and therefore by column in from banks without foreign offices, the inapplicability of certain items to banks this table. See the instructions for more detail. that have only domestic offices and/or the absence of detail on a fully consolidated 9. Equity capital is not allocated between the domestic and foreign offices of basis for banks with foreign offices. banks with foreign offices. 3. All transactions between domestic and foreign offices of a bank are reported 10. Only the domestic portion of federal funds sold and securities purchased in "net due from" and "net due to." All other lines represent transactions with under agreements to resell are reported here, therefore, the components will not parties other than the domestic and foreign offices of each bank. Since these add to totals for this item. intraoffice transactions are nullified by consolidation, total assets and total 11. ' 'Acceptances of other banks "is not reported by domestic respondents less liabilities for the entire bank may not equal the sum of assets and liabilities than $300 million in total assets, therefore the components will not add to totals for respectively, of the domestic and foreign offices. this item. 4. Foreign offices include branches in foreign countries, Puerto Rico, and in 12. Only the domestic portion of federal funds purchased and securities sold U.S. territories and possessions; subsidiaries in foreign countries; all offices of are reported here, therefore the components will not add to totals for this item. Edge act and agreement corporations wherever located and IBFs. 13. Components of assets held in trading accounts are only reported for banks 5. The 'over 100' column refers to those respondents whose assets, as of June with total assets of $1 billion or more; therefore the components will not add to the 30 of the previous calendar year, were equal to or exceeded $100 million. (These totals for this item. respondents file the FFIEC 032 or FFIEC 033 call report.) The 'under 100' column Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Special Tables • February 1991 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 19901 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 3 in I T c B l o u F t d a ' i s l n g I o B n F ly 's 3 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 T c B l o u F t d a ' i s l n g I o B n F ly ' s 1 Total assets4 583,759 259,369 424,933 206,844 85,598 26,136 45,396 16,198 2 Claims on nonrelated parties 527,776 202,337 383,598 162,662 78,191 18,915 45,022 15,426 3 Cash and balances due from depository institutions 143,790 118,410 118,875 96,508 8,682 7,938 14,109 12,677 4 Cash items in process of collection and unposted debits 1,573 6 1,512 6 28 0 5 0 5 Currency and coin (U.S. and foreign) 23 n.a. 17 n.a. 1 n.a. 1 n.a. 6 Balances with depository institutions in United States .. 72,441 50,558 60,727 41,426 4,469 33,,883344 6,479 5,112 7 U.S. branches and agencies of other foreign banks (including their IBFs) 63,435 47,769 53,180 38,896 3,900 3,782 5,835 4,924 8 Other depository institutions in United States (including their IBFs) 9,006 2,788 7,547 2,530 569 52 644 188 9 Balances with banks in foreign countries and with foreign central banks 68,612 67,846 55,670 55,076 4,110 4,105 7,579 7,565 10 Foreign branches of U.S. banks 1,462 1,416 1,320 1,274 70 70 68 68 11 Other banks in foreign countries and foreign central banks 67,149 66,430 54,350 53,802 4,040 4,035 7,511 7,497 12 Balances with Federal Reserve Banks 1,141 n.a. 949 n.a. 74 n.a. 45 n.a. 13 Total securities and loans 311,961 71,903 206,789 55,925 60,331 9,726 27,207 2,309 14 Total securities, book value 46,266 14,148 40,688 12,313 3,626 1,200 1,371 564 15 U.S. Treasury 9,805 n.a. 9,492 n.a. 60 n.a. 192 n.a. 16 Obligations of U.S. government agencies and corporations 6,370 n.a. 6,110 n.a. 162 n.a. 21 n.a. 17 Other bonds, notes, debentures and corporate stock (including state and local securities) 30,090 14,148 25,086 12,313 3,404 1,200 1,158 564 18 Federal funds sold and securities purchased under agreements to resell 21,466 4,080 20,053 3,828 756 246 214 0 19 U.S. branches and agencies of other foreign banks 13,810 2,483 12,926 2,286 521 191 144 0 20 Commercial banks in United States 4,085 205 3,671 200 180 5 9 0 21 Other 3,571 1,392 3,456 1,342 55 50 61 0 22 Total loans, gross 265,868 57,791 166,223 43,645 56,744 8,530 25,843 1,745 23 Less: Unearned income on loans 173 36 121 33 38 3 7 0 24 Equals: Loans, net 265,696 57,755 166,102 43,612 56,705 8,527 25,836 1,745 Total loans, gross, by category 25 Real estate loans 41,669 635 21,758 429 13,060 136 4,199 35 26 Loans to depository institutions 56,989 27,942 41,467 19,062 10,384 6,160 3,283 1,259 27 Commercial banks in United States (including IBFs) 36,895 10,137 26,604 6,167 7,490 3,353 2,569 569 28 U.S. branches and agencies of other foreign banks ... 31,674 9,399 22,297 5,544 7,042 3,258 2,124 549 29 Other commercial banks in United States 5,221 737 4,307 623 449 95 445 20 30 Other depository institutions in United States (including IBFs) 86 0 36 0 49 0 0 0 31 Banks in foreign countries 20,008 17,805 14,826 12,895 2,845 2,808 714 690 32 Foreign branches of U.S. banks 355 325 282 252 62 62 11 11 33 Other banks in foreign countries 19,653 17,480 14,544 12,643 2,783 2,746 703 680 34 Other financial institutions 7,793 1,013 5,591 826 996 148 711 27 35 Commercial and industrial loans 137,809 14,881 80,246 12,445 30,775 1,690 17,074 319 36 U.S. addressees (domicile) 118,364 257 65,428 148 28,049 98 16,597 10 37 Non-U.S. addressees (domicile) 19,445 14,624 14,818 12,297 2,726 1,592 477 309 38 Acceptances of other banks 1,904 20 1,257 20 366 0 219 0 39 U.S. banks 388 1 300 1 28 0 0 0 40 Foreign banks 1,516 19 956 19 338 0 218 0 41 Loans to foreign governments and official institutions (including foreign central banks) 14,312 12,955 11,628 10,549 477 396 116 104 42 Loans for purchasing or carrying securities (secured and unsecured) 2,800 11 2,193 10 600 0 0 0 43 All other loans 2,593 335 2,083 303 86 0 242 0 44 All other assets 50,560 7,945 37,881 6,401 8,421 1,004 3,493 440 45 Customers' liability on acceptances outstanding 26,236 n.a. 19,290 n.a. 5,733 n.a. 950 n.a. 46 U.S. addressees (domicile) 17,787 n.a. 11,812 n.a. 4,943 n.a. 948 n.a. 47 Non-U.S. addressees (domicile) 8,450 n.a. 7,477 n.a. 790 n.a. 1 n.a. 48 Other assets including other claims on nonrelated parties 24,323 7,945 18,591 6,401 2,688 1,004 2,543 440 49 Net due from related depository institutions5 55,983 57,031 41,335 44,182 7,407 7,221 374 771 50 Net due from head office and other related depository institutions 55,983 n.a. 41,335 n.a. 7,407 n.a. 374 n.a. 51 Net due from establishing entity, head offices, and other related depository institutions n.a. 57,031 n.a. 44,182 n.a. 7,221 n.a. 771 52 Total liabilities4 583,759 259,369 424,933 206,844 85,598 26,136 45,396 16,198 53 Liabilities to nonrelated parties 510,925 227,212 387,092 185,277 77,514 23,963 30,369 10,374 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 ex I T c B l o u F t d a 's i l n g I o B n F ly 's 3 ex I T c B l o u F t d a 's i l n g I o B n F ly 's 3 ex I T c B l o u F t d a 's i l n g I o B n F ly 's 3 ex I T c B l o u F t d a 's i l n g II "V. California Illinois 54 Total deposits and credit balances 73,636 173,075 60,626 154,294 4,077 10,081 3,208 1,742 55 Individuals, partnerships, and corporations 55,066 16,391 44,678 10,172 3,042 281 2,576 30 56 U.S. addressees (domicile) 41,211 364 36,639 364 1,107 0 1,603 0 57 Non-U.S. addressees (domicile) 13,855 16,027 8,039 9,809 1,935 281 973 30 58 Commercial banks in United States (including IBFs). 11,959 51,800 9,871 47,501 751 3,352 618 642 59 U.S. branches and agencies of other foreign banks 5,608 46,829 5,326 43,254 16 2,839 229 519 60 Other commercial banks in United States 6,351 4,971 4,545 4,247 735 513 389 123 61 Banks in foreign countries 2,209 94,680 2,072 87,105 17 5,936 2 1,049 62 Foreign branches of U.S. banks 398 6,379 398 5,853 0 420 0 92 63 Other banks in foreign countries 1,811 88,301 1,675 81,251 17 5,516 2 957 64 Foreign governments and official institutions (including foreign central banks) 1,184 10,125 888 9,437 222 513 3 21 65 All other deposits and credit balances 2,769 80 2,724 80 23 0 1 0 66 Certified and official checks 449 n a. 393 n.a. 22 n.a. 7 n.a. 67 Transaction accounts and credit balances (excluding IBFs) 8,256 7,088 307 228 68 Individuals, partnerships, and corporations 5,411 4,457 261 216 69 U.S. addressees (domicile) 4,086 3,532 223 212 70 Non-U.S. addressees (domicile) 1,325 925 37 5 71 Commercial banks in United States (including IBFs). 277 272 1 0 72 U.S. branches and agencies of other foreign banks 81 80 0 0 73 Other commercial banks in United States 196 n.a. 191 n a. 1 n.a. 0 n.a. 74 Banks in foreign countries 1,230 1,135 17 2 75 Foreign branches of U.S. banks 24 24 0 0 76 Other banks in foreign countries 1,206 1,111 17 2 77 Foreign governments and official institutions (including foreign central banks) 359 321 2 1 78 All other deposits and credit balances 531 510 4 1 79 Certified and official checks 449 393 22 7 80 Demand deposits (included in transaction accounts and credit balances) 7,409 6,488 228 216 81 Individuals, partnerships, and corporations 4,986 4,264 185 205 82 U.S. addressees (domicile) 3,873 3,430 160 200 83 Non-U.S. addressees (domicile) 1,113 834 25 5 84 Commercial banks in United States (including IBF)s. 180 175 0 0 85 U.S. branches and agencies of other foreign banks 16 15 0 0 86 Other commercial banks in United States 165 n.a. 161 n.a. 0 n. a. 0 n.a. 87 Banks in foreign countries 1.012 921 16 2 88 Foreign branches of U.S. banks 24 24 0 0 89 Other banks in foreign countries 988 897 16 2 90 Foreign governments and official institutions (including foreign central banks) 299 261 2 1 91 All other deposits and credit balances 484 473 2 1 92 Certified and official checks 449 393 22 7 93 Non-transaction accounts (including MMDAs, excluding IBFs) 65,381 53,538 3,770 2,980 94 Individuals, partnerships, and corporations 49,656 40,221 2,781 2,360 95 U.S. addressees (domicile) 37,125 33,106 884 1,392 96 Non-U.S. addressees (domicile) 12,530 7,114 98 968 97 Commercial banks in United States (including IBFs). 11,682 9,599 750 618 98 U.S. branches and agencies of other foreign banks 5,527 5,246 16 229 99 Other commercial banks in United States 6,155 n. a. 4,353 n. a. 735 n. a. 388 n.a. 100 Banks in foreign countries 979 938 0 0 101 Foreign branches of U.S. banks 374 374 0 0 102 Other banks in foreign countries 606 564 0 0 103 Foreign governments and official institutions (including foreign central banks) 826 568 219 1 104 All other deposits and credit balances 2,237 2,213 19 1 105 IBF deposit liabilities 173,075 154,294 10,081 1,742 106 Individuals, partnerships, and corporations 16,391 10,172 281 30 107 U.S. addressees (domicile) 364 364 0 0 108 Non-U.S. addressees (domicile) 16,027 9,809 281 30 109 Commercial banks in United States (including IBFs). 51,800 47,501 3,352 642 110 U.S. branches and agencies of other foreign banks 46,829 43,254 2,839 519 111 Other commercial banks in United States n a. 4,971 n a. 4,247 n a. 513 n a. 123 112 Banks in foreign countries 94,680 87,105 5,936 1,049 113 Foreign branches of U.S. banks 6,379 5,853 420 92 114 Other banks in foreign countries 88,301 81,251 5,516 957 115 Foreign governments and official institutions (including foreign central banks) 10,125 9,437 513 21 116 All other deposits and credit balances 80 80 0 0 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 Special Tables • February 1991 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 1990'—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 3 in I T c B l o u F t d a ' i s l n g I o B n F ly 's 3 in I T c B l o u F t d a ' i s l n g I o B n F ly 's 3 in I T c B l o u F t d a ' i s l n g I o B n F ly 's 3 117 Federal funds purchased and securities sold under agreements to repurchase 77,004 6,280 55,195 3,461 14,289 1,692 6,911 1,108 118 U.S. branches and agencies of other foreign banks 16,360 2,212 10,980 973 3,600 697 1,744 532 119 Other commercial banks in United States 28,228 379 17,668 240 6,550 84 3,593 55 120 Other 32,415 3,689 26,547 2,248 4,139 911 1,575 521 121 Other borrowed money 133,148 40,986 76,585 21,896 3399,,440099 11,329 1155,,331100 7,239 122 Owed to nonrelated commercial banks in United States (including IBFs) 71,797 15,023 36,653 4,846 25,481 6,704 8,318 3,118 123 Owed to U.S. offices of nonrelated U.S. banks 25,841 2,226 13,156 847 88,,220099 730 33,,889911 469 124 Owed to U.S. branches and agencies of nonrelated foreign banks 45,956 12,797 23,498 4,000 17,271 5,974 4,426 2,649 125 Owed to nonrelated banks in foreign countries 25,209 24,073 16,302 15,221 4,611 4,569 4,128 4,121 126 Owed to foreign branches of nonrelated U.S. banks ... 2,283 1,723 1,426 866 548 548 292 292 127 Owed to foreign offices of nonrelated foreign banks 22,926 22,351 14,876 14,356 4,063 4,020 3,836 3,829 128 Owed to others 36,142 1,889 23,630 1,829 9,317 56 2,865 0 129 All other liabilities 54,061 6,871 40,392 5,626 99,,665577 860 3,197 285 130 Branch or agency liability on acceptances executed and outstanding 31,497 n.a. 23,726 n.a. 6,327 n.a. 915 n. a. 131 Other liabilities to nonrelated parties 22,564 6,871 16,666 5,626 3,330 860 2,282 285 132 Net due to related depository institutions5 72,835 32,157 37,841 21,567 8,084 2,173 1155,,002277 5,823 133 Net due to head office and other related depository institutions 72,835 n.a. 37,841 n.a. 8,084 n.a. 1155,,002277 n.a. 134 Net due to establishing entity, head office, and other related depository institutions5 n.a. 32,157 n.a. 21,567 n.a. 2,173 n.a. 5,823 MEMO 135 Non-interest bearing balances with commercial banks in United States 2,696 1 2,368 1 97 0 91 0 136 Holding of commercial paper included in total loans 1,156 918 176 60 137 Holding of own acceptances included in commercial and industrial loans 2,084 1,510 325 76 138 Commercial and industrial loans with remaining maturity of one year or less 72,527 40,103 17,584 9,488 139 Predetermined interest rates 40,731 n.a. 20,395 n.a. 11,259 n.a. 5,505 n. a. 140 Floating interest rates 31,796 19,708 66,,332255 3,983 141 Commercial and industrial loans with remaining maturity of more than one year 65,282 40,143 13,191 7,586 142 Predetermined interest rates 21,277 12,546 4,285 3,454 143 Floating interest rates 44,005 27,597 8,906 4,133 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A81 4.30—Continued Millions of dollars All states2 New York California Illinois IItteemm ex T c IB l o u t F d a s i l n g o IB nl F y s 3 ex T c IB l o u t F d a s i l n g o IB nl F y s 3 ex T c IB l o u t F d a s i l n g o IB nl F y s ex T c IB l o u t F d a s i l n g o IB nl F y s 3 111144444444 CCCCoooommmmppppoooonnnneeeennnnttttssss ooooffff ttttoooottttaaaallll nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnn aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ttttoooottttaaaallll ddddeeeeppppoooossssiiiittttssss aaaannnndddd ccccrrrreeeeddddiiiitttt bbbbaaaallllaaaannnncccceeeessss ooooffff t 1 t t nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnnaaaallll aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddiiiinnnngggg IIIIBBBBFFFFssss 79,443 68,348 4,179 2,903 111144445555 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 43,732 36,584 2,471 1,203 111144446666 OOOOtttthhhheeeerrrr ttttiiiimmmmeeee ddddeeeeppppoooossssiiiittttssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 111144447777 TTTTiiiimmmmeeee oooo rrrr CCCC mmmm DDDDssss oooo rrrr iiii eeee nnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 16,699 n1.a. 14,067 n1.a. 986 n.a. 1,526 n.a. wwwwiiiitttthhhh rrrreeeemmmmaaaaiiiinnnniiiinnnngggg mmmmaaaattttuuuurrrriiiittttyyyy ooooffff mmmmoooorrrreeee tttthhhhaaaannnn 11112222 mmmmoooonnnntttthhhhssss ........ 19,013 17,697 723 \ 173 All states2 New York California Illinois inc T I l B o u t F d a s i l n g o IB nl F y s 3 in T c I l B o u t F d a s i l n g o IB nl F y s 3 inc T I l B o u t F d a s i l n g o IB nl F y s inc T I l B o u t F d a s i l n g o IB nl F y s 3 111144448888 MMMMaaaarrrrkkkkeeeetttt vvvvaaaalllluuuueeee ooooffff sssseeeeccccuuuurrrriiiittttiiiieeeessss hhhheeeelllldddd 51,344 13,323 45,268 11,532 4,184 1,158 1,367 564 111144449999 IIIImmmmmmmmeeeeddddiiiiaaaatttteeeellllyyyy aaaavvvvaaaaiiiillllaaaabbbblllleeee ffffuuuunnnnddddssss wwwwiiiitttthhhh aaaa mmmmaaaattttuuuurrrriiiittttyyyy ggggrrrreeeeaaaatttteeeerrrr tttthhhhaaaannnn oooonnnneeee ddddaaaayyyy iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ooootttthhhheeeerrrr bbbboooorrrrrrrroooowwwweeeedddd mmmmoooonnnneeeeyyyy 81,656 n.a. 45,771 n.a. 24,493 n.a. 10,168 n.a. 111155550000 NNNNuuuummmmbbbbeeeerrrr ooooffff rrrreeeeppppoooorrrrttttssss ffffiiiilllleeeedddd6666 555 0 256 0 131 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. 11 tables are not strictly comparable the G. 11 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. 11 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 and Official Staff ALAN GREENSPAN, Chairman MARTHA R. SEGER 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 DIANE E. WERNEKE, Special Assistant to the Board DAVID H. HOWARD, Deputy Associate Director ROBERT F. GEMMILL, Staff Adviser LEGAL DIVISION DONALD B. ADAMS, Assistant Director J. VIRGIL MATTINGLY, JR., General Counsel DALE W. HENDERSON, Assistant Director RICHARD M. ASHTON, Associate General Counsel PETER HOOPER III, Assistant Director OLIVER IRELAND, Associate General Counsel KAREN H. JOHNSON, Assistant Director RICKI R. TIGERT, Associate General Counsel RALPH W. SMITH, JR. , Assistant Director SCOTT G. ALVAREZ, Assistant General Counsel MARYELLEN A. BROWN, Assistant to the General Counsel DIVISION OF RESEARCH AND STATISTICS MICHAEL J. PRELL, Director OFFICE OF THE SECRETARY EDWARD C. ETTIN, Deputy Director WILLIAM W. WILES, Secretary THOMAS D. SIMPSON, Associate Director JENNIFER J. JOHNSON, Associate Secretary LAWRENCE SLIFMAN, Associate Director BARBARA R. LOWREY, Associate Secretary M DA A V R I T D H J A . S B T E O T C H K E T A O , D N, e A pu ss t o y c A ia ss te o c D ia ir t e e c D to i r r ector DIVISION OF CONSUMER PETER A. TINSLEY, Deputy Associate Director MYRON L. KWAST, Assistant Director AND COMMUNITY AFFAIRS PATRICK M. PARKINSON, Assistant Director GRIFFITH L. GARWOOD, Director MARTHA S. SCANLON, Assistant Director GLENN E. LONEY, Assistant Director JOYCE K. ZICKLER, Assistant Director ELLEN MALAND, Assistant Director LEVON H. GARABEDIAN, Assistant Director DOLORES S. SMITH, Assistant Director (Administration ) DIVISION OF BANKING DIVISION OF MONETARY AFFAIRS SUPERVISION AND REGULATION DONALD L. KOHN, Director WILLIAM TAYLOR, Staff Director DAVID E. LINDSEY, Deputy Director DON E. KLINE, Associate Director BRIAN F. MADIGAN, Assistant Director FREDERICK M. STRUBLE, Associate Director RICHARD D. PORTER, Assistant Director WILLIAM A. RYBACK, Deputy Associate Director NORMAND R. V. BERNARD, Special Assistant to the Board STEPHEN C. SCHEMERING, Deputy Associate Director RICHARD SPILLENKOTHEN, Deputy Associate Director OFFICE OF THE INSPECTOR GENERAL H R JO O E E R G B M ER E . R C T T . L C E A. A O V B L E E IE , R R A , N A s , s s A i s s i s t s a s t i n a s n t t a D t n D i t r i e D r c e i t c r o t e r o c r t or B B R AR EN R T Y L R . . B S O NY W D E E N R , , I A ns s p si e s c ta to n r t G In e s n p e e r c a t l o r General JAMES I. GARNER, Assistant Director JAMES D. GOETZINGER, Assistant Director MICHAEL G. MARTINSON, Assistant Director ROBERT S. PLOTKIN, Assistant Director SIDNEY M. SUSSAN, Assistant Director LAURA M. HOMER, Securities Credit Officer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A83 EDWARD W. KELLEY, JR. DAVID W. MULLINS, JR. JOHN P. LAWARE OFFICE OF OFFICE OF STAFF DIRECTOR FOR STAFF DIRECTOR FOR MANAGEMENT FEDERAL RESERVE BANK ACTIVITIES S. DAVID FROST, Staff Director THEODORE E. ALLISON, Staff Director WILLIAM SCHNEIDER, Special Assignment: Project Director, National Information Center DIVISION OF RESERVE BANK OPERATIONS PORTIA W. THOMPSON, Equal Employment Opportunity AND PAYMENT SYSTEMS Programs Officer CLYDE H. FARNSWORTH, IK., Director DAVID L. ROBINSON, Deputy Director (Finance and DIVISION OF HUMAN RESOURCES Control) MANAGEMENT BRUCE J. SUMMERS, Deputy Director (Payments and DAVID L. SHANNON, Director Automation) 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 EDWARD T. MULRENIN, 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 • February 1991 Federal Open Market Committee and Advisory Councils FEDERAL OPEN MARKET COMMITTEE MEMBERS ALAN GREENSPAN, Chairman E. GERALD CORRIGAN, Vice Chairman WAYNE D. ANGELL SELAS KEEHN DAVID W. MULLINS, JR. ROBERT P. BLACK EDWARD W. KELLEY, JR. ROBERT T. PARRY ROBERT P. FORRESTAL JOHN P. LA WARE MARTHA R. SEGER ALTERNATE MEMBERS ROGER GUFFEY THOMAS C. MELZER JAMES H. OLTMAN W. LEE HOSKINS RICHARD F. SYRON 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 IRA STEPANIAN, First District B. KENNETH WEST, Seventh District CHARLES S. SANFORD, JR., Second District DAN W. MITCHELL, Eighth District TERRENCE A. LARSEN, Third District LLOYD P. JOHNSON, Ninth District JOHN B. MCCOY, Fourth District JORDAN L. HAINES, Tenth District EDWARD E. CRUTCHFIELD, Fifth District RONALD G. STEINHART, Eleventh District E.B. Robinson, Jr., 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 CONSUMER ADVISORY COUNCIL JAMES W. HEAD, Berkeley, California, Chairman LINDA K. PAGE, Columbus, Ohio, Vice Chairman VERONICA E. BARELA, Denver, Colorado JULIA E. HILER, Marietta, Georgia GEORGE H. BRAASCH, Oakbrook, Illinois HENRY JARAMILLO, Belen, New Mexico To YE L. BROWN, Boston, Massachusetts BARBARA KAUFMAN, San Francisco, California CLIFF E. COOK, Tacoma, Washington KATHLEEN E. KEEST, Boston, Massachusetts R.B. (JOE) DEAN, JR., Columbia, South Carolina COLLEEN D. MCCARTHY, Kansas City, Missouri DENNY D. DUMLER, Denver, Colorado MICHELLE S. MEIER, Washington, D.C. WILLIAM C. DUNKELBERG, Philadelphia, Pennsylvania BERNARD F. PARKER, JR., Detroit, Michigan JAMES FLETCHER, Chicago, Illinois OTIS PITTS, JR., Miami, Florida GEORGE C. GALSTER, Wooster, Ohio VINCENT P. QUAYLE, Baltimore, Maryland E. THOMAS GARMAN, Blacksburg, Virginia CLIFFORD N. ROSENTHAL, New York, New York DONALD A. GLAS, Hutchinson, Minnesota ALAN M. SILBERSTEIN, New York, New York DEBORAH B. GOLDBERG, Washington, D.C. NANCY HARVEY STEORTS, Dallas, Texas DAVID P. WARD, Chester, New Jersey MICHAEL M. GREENFIELD, St. Louis, Missouri JOYCE HARRIS, Madison, Wisconsin SANDRA L. WILLETT, Boston, Massachusetts THRIFT INSTITUTIONS ADVISORY COUNCIL MARION O. SANDLER, Oakland, California, President LYNN W. HODGE, Greenwood, South Carolina, Vice President DANIEL C. ARNOLD, Houston, Texas RICHARD A. LARSON, West Bend, Wisconsin JAMES L. BRYAN, Richardson, Texas PRESTON MARTIN, San Francisco, California DAVID L. HATFIELD, Kalamazoo, Michigan RICHARD D. PARSONS, New York, New York ELLIOT K. KNUTSON, Seattle, Washington EDMOND M. SHANAHAN, Chicago, Illinois JOHN WM. LAISLE, Oklahoma City, Oklahoma WOODBURY C. TITCOMB, Worcester, Massachusetts Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A86 Federal Reserve Board Publications For ordering assistance, write PUBLICATIONS SERVICES, Federal Reserve Regulatory Service, $250.00 per year. MS-138, Board of Governors of the Federal Reserve System, Each Handbook, $90.00 per year. Washington, D.C. 20551 or telephone (202) 452-3244 or FAX THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A (202) 452-3102. When a charge is indicated, payment should MULTICOUNTRY MODEL, May 1984.590 pp. $14.50 each. accompany request and be made payable to the Board of WELCOME TO THE FEDERAL RESERVE. March 1989. 14 pp. Governors of the Federal Reserve System. Payment from foreign INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. residents should be drawn on a U.S. bank. 440 pp. $9.00 each. FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. December 1986. 264 pp. $10.00 each. FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALY- THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS. SIS AND POLICY ISSUES. August 1990.608 pp. $25.00 each. 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, Canada, Short pamphlets suitable for classroom use. Multiple copies are and Mexico. Elsewhere, $35.00 per year or $3.00 each. available without charge. BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint of Part I only) 1976. 682 pp. $5.00. Consumer Handbook on Adjustable Rate Mortgages ANNUAL STATISTICAL DIGEST Consumer Handbook to Credit Protection Laws 1974-78. 1980. 305 pp. $10.00 per copy. Federal Reserve Glossary 1981. 1982. 239 pp. $ 6.50 per copy. A Guide to Business Credit for Women, Minorities, and Small 1982. 1983. 266 pp. $ 7.50 per copy. Businesses 1983. 1984. 264 pp. $11.50 per copy. How to File A Consumer Credit Complaint 1984. 1985. 254 pp. $12.50 per copy. Series on the Structure of the Federal Reserve System 1985. 1986. 231 pp. $15.00 per copy. The Board of Governors of the Federal Reserve System 1986. 1987. 288 pp. $15.00 per copy. The Federal Open Market Committee 1987. 1988. 272 pp. $15.00 per copy. Federal Reserve Bank Board of Directors 1988. 1989.256 pp. $25.00 per copy. Federal Reserve Banks SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES Organization and Advisory Committees OF CHARTS. Weekly. $30.00 per year or $.70 each in the A Consumer's Guide to Mortgage Lock-Ins United States, its possessions, Canada, and Mexico. A Consumer's Guide to Mortgage Settlement Costs Elsewhere, $35.00 per year or $.80 each. A Consumer's Guide to Mortgage Refinancing THE FEDERAL RESERVE ACT and other statutory provisions Home Mortgages: Understanding the Process and Your Rights affecting the Federal Reserve System, as amended through Making Deposits: When Will Your Money Be Available? August 1990. 646 pp. $10.00. When Your Home is on the Line: What You Should Know About REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL Home Equity Lines of Credit RESERVE SYSTEM. ANNUAL PERCENTAGE RATE TABLES (Truth in Lending-Regulation Z) Vol. I (Regular Transactions). 1969.100pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each volume PAMPHLETS FOR FINANCIAL INSTITUTIONS $2.25; 10 or more of same volume to one address, $2.00 Short pamphlets on regulatory compliance, primarily suitable each. for banks, bank holding companies, and creditors. Introduction to Flow of Funds. 1980. 68 pp. $1.50 each; 10 or more to one address, $1.25 each. Limit of 50 copies Federal Reserve Regulatory Service. Looseleaf; updated at least monthly. (Requests must be prepaid.) The Board of Directors' Opportunities in Community Consumer and Community Affairs Handbook. $75.00 per Reinvestment year. The Board of Directors' Role in Consumer Law Compliance Monetary Policy and Reserve Requirements Handbook. Combined Construction/Permanent Loan Disclosure and $75.00 per year. Regulation Z Securities Credit Transactions Handbook. $75.00 per year. Community Development Corporations and the Federal Reserve The Payment System Handbook. $75.00 per year. Construction Loan Disclosures and Regulation Z Federal Reserve Regulatory Service. 3 vols. (Contains all Finance Charges Under Regulation Z three Handbooks plus substantial additional material.) How to Determine the Credit Needs of Your Community $200.00 per year. Regulation Z: The Right of Rescission Rates for subscribers outside the United States are as follows The Right to Financial Privacy Act and include additional air mail costs: Signature Rules in Community Property States: Regulation B Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A87 Signature Rules: Regulation B 157. M2 PER UNIT OF POTENTIAL GNP AS AN ANCHOR FOR Timing Requirements for Adverse Action Notices: Regulation 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 REQUIRE- MENTS IN THE MARKETS FOR STOCKS AND DERIVATIVE PRODUCTS, by Mark J. Warshawsky with the assistance of STAFF STUDIES: Summaries Only Printed in the Dietrich Earnhart. September 1989. 23 pp. Bulletin 159. NEW DATA ON THE PERFORMANCE OF NONBANK SUB- Studies and papers on economic andfinancial subjects that are of SIDIARIES OF BANK HOLDING COMPANIES, by Nellie Liang and Donald Savage. February 1990. 12 pp. general interest. Requests to obtain single copies ofthejull text or to be added to the mailing list for the series may be sent to 160. BANKING MARKETS AND THE USE OF FINANCIAL SER- Publications Services. VICES BY SMALL AND MEDIUM-SIZED BUSINESSES, by Gregory E. Elliehausen and John D. Wolken. September Staff Studies 114-145 are out of print. 1990. 35 pp. 146. THE ROLE OF THE PRIME RATE IN THE PRICING OF BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84, by Thomas F. Brady. November 1985. 25 pp. REPRINTS OF Bulletin ARTICLES 147. REVISIONS IN THE MONETARY SERVICES (DIVISIA) IN- DEXES OF THE MONETARY AGGREGATES, by Helen T. Farr Most of the articles reprinted do not exceed 12 pages. and Deborah Johnson. December 1985. 42 pp. 148. THE MACROECONOMIC AND SECTORAL EFFECTS OF THE Limit of 10 copies ECONOMIC RECOVERY TAX ACT: SOME SIMULATION RESULTS, by Flint Brayton and Peter B. Clark. December Recent Developments in the Bankers Acceptance Market. 1/86. 1985. 17 pp. The Use of Cash and Transaction Accounts by American 149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS IN Families. 2/86. BANKING BEFORE AND AFTER ACQUISITION, by Stephen Financial Characteristics of High-Income Families. 3/86. A. Rhoades. April 1986. 32 pp. Prices, Profit Margins, and Exchange Rates. 6/86. 150. STATISTICAL COST ACCOUNTING MODELS IN BANKING: Agricultural Banks under Stress. 7/86. A REEXAMINATION AND AN APPLICATION, by John T. Foreign Lending by Banks: A Guide to International and U.S. Rose and John D. Wolken. May 1986. 13 pp. Statistics. 10/86. 151. RESPONSES TO DEREGULATION : RETAIL DEPOSIT PRICING Recent Developments in Corporate Finance. 11/86. FROM 1983 THROUGH 1985, by Patrick I. Mahoney, Alice Measuring the Foreign-Exchange Value of the Dollar. 6/87. P. White, Paul F. O'Brien, and Maty M. McLaughlin. Changes in Consumer Installment Debt: Evidence from the 1983 January 1987. 30 pp. and 1986 Surveys of Consumer Finances. 10/87. 152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A Home Equity Lines of Credit. 6/88. REVIEW OF THE LITERATURE ,by Mark J. Warshawsky. Mutual Recognition: Integration of the Financial Sector in the April 1987. 18 pp. European Community. 9/89. 153. STOCK MARKET VOLATILITY, by Carolyn D. Davis and The Activities of Japanese Banks in the United Kingdom and in Alice P. White. September 1987. 14 pp. the United States, 1980-88. 2/90. 154. THE EFFECTS ON CONSUMERS AND CREDITORS OF Industrial Production: 1989 Developments and Historical PROPOSED CEILINGS ON CREDIT CARD INTEREST RATES, Revision. 4/90. by Glenn B. Canner and James T. Fergus. October 1987. U.S. International Transactions in 1989. 5/90. 26 pp. Recent Developments in Industrial Capacity and Utilization. 155. THE FUNDING OF PRIVATE PENSION PLANS, by Mark J. 6/90. Warshawsky. November 1987. 25 pp. Developments Affecting the Profitability of Commercial Banks. 156. INTERNATIONAL TRENDS FOR U.S. BANKS AND BANKING 7/90. MARKETS, by James V. Houpt. May 1988. 47 pp. Recent Developments in Corporate Finance. 8/90. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A88 Index to Statistical Tables References are to pages A3-A81 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Demand deposits Agricultural loans, commercial banks, 19,20 Banks, by classes, 18-21, 73, 75, 77 Assets and liabilities (See also Foreigners) Ownership by individuals, partnerships, and corporations, 22 Banks, by classes, 18-20, 72-77 Turnover, 15 Domestic financec ompanies, 36 Depository institutions Federal Reserve Banks, 10 Reserve requirements, 8 Financial institutions, 26 Reserves and related items, 3,4, 5,12 Foreign banks, U.S. branches and agencies, 21, 78-81 Deposits (See also specific types) Automobiles Banks, by classes, 3, 18-20, 21, 73, 75, 77 Consumer installment credit, 39,40 Federal Reserve Banks, 4,10 Production, 49, 50 Turnover, 15 Discount rates at Reserve Banks and at foreign central banks and foreign countries (See Interest rates) BANKERS acceptances, 9,23,24 Discounts and advances by Reserve Batiks (See Loans) Bankers balances, 18-20, 72, 74, 76, (Seealso Foreigners) Dividends, corporate, 35 Bonds (See also U.S. government securities) New issues, 34 Rates, 24 EMPLOYMENT, 47 Branch banks, 21, 57, 78-81 Eurodollars, 24 Business activity, nonfinancial, 46 Business expenditures on new plant and equipment, 35 FARM mortgage loans, 38 Business loans (See Commercial and industrial loans) Federal agency obligations, 4,9, 10,11, 31, 32 Federal credit agencies, 33 Federal finance CAPACITY utilization, 48 Debt subject to statutory limitation, and types and ownership Capital accounts of gross debt, 30 Banks, by classes, 18,73,75,77 Receipts and outlays, 28,29 Federal Reserve Banks, 10 Treasury financing of surplus, or deficit, 28 Central banks, discount rates, 69 Treasury operating balance, 28 Certificates of deposit, 24 Federal Financing Bank, 28, 33 Commercial and industrial loans Federal funds, 6,17,19,20,21,24,28 Commercial banks, 16,19, 72, 74, 76, 78-79 Federal Home Loan Banks, 33 Weekly reporting banks, 19-21 Federal Home Loan Mortgage Corporation, 33, 37, 38 Commercial banks Federal Housing Administration, 33, 37, 38 Assets and liabilities, 18-20, 78-81 Federal Land Banks, 38 Commercial and industrial loans, 16, 18, 19, 20, 21, 72, 74, Federal National Mortgage Association, 33, 37, 38 76,78-81 Federal Reserve Banks Consumer loans held, by type and terms, 39, 40 Condition statement, 10 Loans sold outright, 19 Discount rates (See Interest rates) Nondeposit funds, 17 U.S. government securities held, 4, 10, 11, 30 Number by classes, 73, 75, 77 Federal Reserve credit, 4, 5, 10, 11 Real estate mortgages held, by holder and property, 38 Federal Reserve notes, 10 Time and savings deposits, 3 Federal Savings and Loan Insurance Corporation insured Commercial paper, 23,24, 36 institutions, 26 Condition statements (See Assets and liabilities) Federally sponsored credit agencies, 33 Construction, 46, 51 Finance companies Consumer installment credit, 39,40 Assets and liabilities, 36 Consumer prices, 46,48 Business credit, 36 Consumption expenditures, 53, 54 Loans, 39, 40 Corporations Paper, 23,24 Nonfinancial, assets and liabilities, 35 Financial institutions Profits and their distribution, 35 Loans to, 19,20,21 Security issues, 34, 67 Selected assets and liabilities, 26 Cost of living (See Consumer prices) Float, 4 Credit unions, 27, 39. (See also Thrift institutions) Flow of funds, 41,43, 44,45 Currency and coin, 18, 72,74, 76 Foreign banks, assets and liabilities of U.S. branches and Currency in circulation, 4, 13 agencies, 21, 78-81 Customer credit, stock market, 25 Foreign currency operations, 10 Foreign deposits in U.S. banks, 4,10, 19, 20 DEBITS to deposit accounts, 15 Foreign exchange rates, 70 Debt (See specific types of debt or securities) Foreign trade, 56 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A89 Foreigners REAL estate loans Claims on, 57, 59, 62, 63,64, 66 Banks, by classes, 16, 19, 20, 38, 74 Liabilities to, 20, 56, 57, 59, 60, 65, 67,68 Financial institutions, 26 Terms, yields, and activity, 37 GOLD Type of holder and property mortgaged, 38 Certificate account, 10 Repurchase agreements, 6,17,19,20,21 Stock, 4,56 Reserve requirements, 8 Government National Mortgage Association, 33, 37, 38 Reserves Gross national product, 53 Commercial banks, 18 Depository institutions, 3, 4, 5,12 Federal Reserve Banks, 10 HOUSING, new and existing units, 51 U.S. reserve assets, 56 Residential mortgage loans, 37 INCOME, personal and national, 46, 53, 54 Retail credit and retail sales, 39, 40, 46 Industrial production, 46, 49 Installment loans, 39, 40 Insurance companies, 26, 30, 38 SAVING Interest rates Flow of funds, 41,43, 44, 45 Bonds, 24 National income accounts, 53 Consumer installment credit, 40 Savings and loan associations, 26, 38, 39, 41. (See also Thrift Federal Reserve Banks, 7 institutions) Foreign central banks and foreign countries, 69 Savings banks, 26, 38, 39 Money and capital markets, 24 Savings deposits (See Time and savings deposits) Mortgages, 37 Securities (See also specific types) Prime rate, 23 Federal and federally sponsored credit agencies, 33 International capital transactions of United States, 55-69 Foreign transactions, 67 International organizations, 59, 60, 62,65, 66 New issues, 34 Inventories, 53 Prices, 25 Investment companies, issues and assets, 35 Special drawing rights, 4,10, 55, 56 Investments (See also specific types) State and local governments Banks, by classes, 18,19,20,21,26 Deposits, 19,20 Commercial banks, 3,16,18-20, 38,72 Holdings of U.S. government securities, 30 Federal Reserve Banks, 10,11 New security issues, 34 Financial institutions, 26, 38 Ownership of securities issued by, 19,20, 26 Rates on securities, 24 LABOR force, 47 Stock market, selected statistics, 25 Life insurance companies (See Insurance companies) Stocks (See also Securities) Loans (See also specific types) New issues, 34 Banks, by classes, 18-20 Prices, 25 Commercial banks, 3,16,18-20,72, 74, 76 Federal Reserve Banks, 4, 5,7,10, 11 Student Loan Marketing Association, 33 Financial institutions, 26, 38 Insured or guaranteed by United States, 37, 38 TAX receipts, federal, 29 Thrift institutions, 3. (See also Credit unions and Savings and MANUFACTURING loan associations) Capacity utilization, 48 Time and savings deposits, 3, 13, 17, 18, 19, 20,21, 73, 75, 77 Production, 48,50 Trade, foreign, 56 Margin requirements, 25 Treasury cash, Treasury currency, 4 Member banks (See also Depository institutions) Treasury deposits, 4, 10, 28 Federal funds and repurchase agreements, 6 Treasury operating balance, 28 Reserve requirements, 8 UNEMPLOYMENT, 47 Mining production, 50 U.S. government balances Mobile homes shipped, 51 Commercial bank holdings, 18, 19, 20 Monetary and credit aggregates, 3,12 Treasury deposits at Reserve Banks, 4, 10,28 Money and capital market rates, 24 U.S. government securities Money stock measures and components, 3,13 Bank holdings, 18-20, 21, 30 Mortgages (See Real estate loans) Dealer transactions, positions, and financing, 32 Mutual funds, 35 Federal Reserve Bank holdings, 4, 10, 11, 30 Mutual savings banks (See Thrift institutions) Foreign and international holdings and transactions, 10, 30, 68 NATIONAL defense outlays, 29 Open market transactions, 9 National income, 53 Outstanding, by type and holder, 26, 30 Rates, 24 OPEN market transactions, 9 U.S. international transactions, 55-69 Utilities, production, 50 PERSONAL income, 54 Prices VETERANS Administration, 37, 38 Consumer and producer, 46, 52 Stock market, 25 Prime rate, 23 WEEKLY reporting banks, 19-21 Producer prices, 46, 52 Wholesale (producer) prices, 46, 52 Production, 46,49 Profits, corporate, 35 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A90 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* 02106 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 Jane G. Pepper William H. Stone, Jr. CLEVELAND* 44101 John R. Miller W. Lee Hoskins A. William Reynolds William H. Hendricks Cincinnati 45201 Kate Ireland Charles A. Cerino1 Pittsburgh 15230 Robert P. Bozzone Harold J. Swart1 RICHMOND* 23219 Anne Marie Whittemore Robert P. Black Henry J. Faison Jimmie R. Monhollon Baltimore 21203 John R. Hardesty, Jr. Ronald B. Duncan1 Charlotte 28230 Anne M. Allen 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 Roy D. Terry Fred R. Herr1 Jacksonville 32231 Hugh H.Brown James D. Hawkins1 Miami 33152 Dorothy C. Weaver James T. Curry III Nashville 37203 Shirley A. Zeitlin Melvyn K. Purcell New Orleans 70161 James A. Hefner Robert J. Musso CHICAGO* 60690 Charles S. McNeer Silas Keehn Richard G. Cline Daniel M. Doyle Detroit 48231 Phyllis E. Peters Roby L.Sloan1 ST. LOUIS 63166 H. Edwin Trusheim Thomas C. Melzer Robert H. Quenon James R. Bowen Little Rock 72203 To be announced Karl W. Ashman Louisville 40232 To be announced Howard Wells Memphis 38101 Katherine H. Smythe Ray Laurence MINNEAPOLIS 55480 Delbert W. Johnson Gary H. Stern Gerald A. Rauenhorst Thomas E. Gainor Helena 59601 James E.Jenks 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 Ernest L. Hollo way David J. France Omaha 68102 Herman Cain Harold L. Shewmaker DALLAS 75222 Hugh G. Robinson Robert D. McTeer, Jr. Leo E. Linbeck, Jr. To be announced Tony J. Salvaggio1 El Paso 79999 W. Thomas Beard, in Sammie C. Clay Houston 77252 Gilbert D. Gaedcke, Jr. Robert Smith, in1 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 D.N.Rose E. Ronald Liggett1 Seattle 98124 Bruce R. Kennedy Gerald R. Kelly1 •Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016; Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202. 1. Senior Vice President. 2. Executive Vice President. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A91 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories 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

Federal Reserve Statistical Releases Available on the Commerce Department's Electronic Bulletin Board The Board of Governors of the Federal Reserve scription. For further information regarding a System makes some of its statistical releases avail- subscription to the electronic bulletin board, able to the public through the U.S. Department of please call (703) 487-4630. The releases transmit- Commerce's electronic bulletin board. Computer ted to the electronic bulletin board, on a regular access to the releases can be obtained by sub- basis, are the following: Reference Number Statistical release Frequency of release H.3 Aggregate Reserves Weekly/Thursday H.4.1 Factors Affecting Reserve Balances Weekly/Thursday H.6 Money Stock Weekly/Thursday H. 8 Assets and Liabilities of Insured Domestically Chartered Weekly/Monday and Foreign Related Banking Institutions H.10 Foreign Exchange Rates Weekly/Monday H. 15 Selected Interest Rates Weekly/Monday G.5 Foreign Exchange Rates Monthly/end of month G.17 Industrial Production and Capacity Utilization Monthly/midmonth G.19 Consumer Installment Credit Monthly/fifth business day Z.7 Flow of Funds Quarterly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Publications of Interest FEDERAL RESERVE REGULATORY SERVICE To promote public understanding of its regulatory ings, and staff opinions. Also included is the Board's functions, the Board publishes the Federal Reserve list of OTC margin stocks. Regulatory Service, a three-volume looseleaf service The Consumer and Community Affairs Handbook containing all Board regulations and related statutes, contains Regulations B, C, E, M, Z, AA, and BB, and interpretations, policy statements, rulings, and staff associated materials. opinions. For those with a more specialized interest in The Payment System Handbook deals with expethe Board's regulations, parts of this service are pub- dited funds availability, check collection, wire translished separately as handbooks pertaining to monetary fers, and risk-reduction policy. It includes Regulation policy, securities credit, consumer affairs, and the CC, Regulation J, the Expedited Funds Availability payment system. Act and related statutes, official Board commentary on These publications are designed to help those who Regulation CC, and policy statements on risk reducmust frequently refer to the Board's regulatory mate- tion in the payment system. rials. They are updated at least monthly, and each For domestic subscribers, the annual rate is $200 for contains citation indexes and a subject index. the Federal Reserve Regulatory Service and $75 for The Monetary Policy and Reserve Requirements each Handbook. For subscribers outside the United Handbook contains Regulations A, D, and Q, plus States, the price including additional air mail costs is related materials. For convenient reference, it also $250 for the Service and $90 for each Handbook. All contains the rules of the Depository Institutions De- subscription requests must be accompanied by a check regulation Committee. or money order payable to the Board of Governors of The Securities Credit Transactions Handbook con- the Federal Reserve System. Orders should be adtains Regulations G, T, U, and X, dealing with exten- dressed to Publications Services, mail stop 138, Board sions of credit for the purchase of securities, together of Governors of the Federal Reserve System, Washwith all related statutes, Board interpretations, rul- ington, D.C. 20551. U.S. MONETARY POLICY AND FINANCIAL MARKETS U.S. Monetary Policy and Financial Markets by Ann- context, examining first the evolution of Federal Re- Marie Meulendyke offers an in-depth description of serve monetary policy procedures from their beginthe way monetary policy is developed by the Federal nings in 1914 to the end of the 1980s. It indicates how Open Market Committee and the techniques employed policy operates most directly through the banking to implement policy at the Open Market Trading Desk. system and the financial markets and describes key Written from her perspective as a senior economist in features of both. Finally, the book turns its attention to the Open Market Function at the Federal Reserve the transmittal of monetary policy actions to the U.S. Bank of New York, Ann-Marie Meulendyke describes economy and throughout the world. the tools and the setting of policy, including many of The book is $5.00 a copy for U.S. purchasers and the complexities that differentiate the process from $10.00 for purchasers outside the United States. Copsimpler textbook models. Included is an account of a ies are available from the Public Information Departday at the Trading Desk, from morning information- ment, Federal Reserve Bank of New York, 33 Liberty gathering through daily decisionmaking and the exe- Street, New York, N.Y. 10045. Checks must accomcution of an open market operation. pany orders and should be payable to the Federal The book also places monetary policy in a broader Reserve Bank of New York in U.S. dollars. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis