Federal Reserve Bulletin, 1991-03

VOLUME 77 • NUMBER 3 • MARCH 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 S. Ellen Dykes, 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 147 MONETARY POLICY REPORT Proposal to modify the procedures used for TO THE CONGRESS measuring Fedwire daylight overdrafts; interim common rule to amend the appraisal Wage and price developments, coupled regulations of the federal financial instituwith the drop in oil prices since midautumn, tions regulatory agencies; proposed amendhave given the Federal Reserve greater latments to Regulation CC. itude in recent months to focus on steps that will bring about economic recovery without Revised List of Marginable OTC Stocks jeopardizing continued progress toward and List of Foreign Margin Stocks now price stability. available. Changes in Board staff. 165 INDUSTRIAL PRODUCTION Three state banks admitted to membership Industrial production fell 0.6 percent in Dein the Federal Reserve System. cember after declines of 1.8 percent and 0.7 percent (revised) in November and Octo- 177 LEGAL DEVELOPMENTS ber. Total industrial capacity utilization Various bank holding company, bank serdropped 0.6 percentage point in December to 80.4 percent, its lowest level since April vice corporation, and bank merger orders; 1987. and pending cases. Ai FINANCIAL AND BUSINESS STATISTICS 168 STATEMENT TO THE CONGRESS These tables reflect data available as of Alan Greenspan, Chairman, Board of Gov- January 29, 1991. ernors, addresses the nation's economic prospects and says that assessing the eco- A3 Domestic Financial Statistics nomic outlook is especially daunting at the A46 Domestic Nonfinancial Statistics present time and that we must make sure A55 International Statistics that our policies remain consistent with the achievement of our economic goals for the A71 GUIDE TO TABULAR PRESENTATION, longer run, before the House Committee on STATISTICAL RELEASES, AND SPECIAL the Budget, January 22, 1991. TABLES A78 BOARD OF GOVERNORS AND STAFF 172 ANNOUNCEMENTS A80 FEDERAL OPEN MARKET COMMITTEE Resignation of Martha R. Seger as a mem- AND STAFF; ADVISORY COUNCILS ber of the Board of Governors. A82 FEDERAL RESERVE BOARD Change in the discount rate. PUBLICATIONS New members named to Consumer Advis- A84 INDEX TO STATISTICAL TABLES ory Council. A86 FEDERAL RESERVE BANKS, Preliminary figures available on the income BRANCHES, AND OFFICES and expenses of the Federal Reserve Banks. A87 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress Report submitted to the Congress on February 20, contraction, which included a continued shift toward 1991, pursuant to the Full Employment and Balanced greater caution by lenders. The economy thus fell Growth Act of1978.1 into recession in the latter part of 1990, and, given the further declines in employment and production that were seen in January, that recession clearly has MONETARY POLICY AND THE ECONOMIC continued into the early part of 1991. OUTLOOK FOR 1991 The secondary wage-price pressures that many had expected to see after the oil shock have not been When it reported to the Congress last July, the much in evidence, probably because those pressures Federal Reserve was anticipating that the economy have been countered by the softening of aggregate would continue to grow in the second half of 1990. demand. The underlying rate of increase in prices Although the first half had been far from robust, with began to drop back over the last few months of 1990. problems clearly evident in some industries and In addition, the rate of increase in nominal wages regions, the economy still was expanding and was and benefits, which already had started to slow in the afflicted with neither the inventory imbalances nor third quarter, decelerated further in the fourth the escalating inflationary pressures that had pre- quarter. These wage and price developments, ceded past cyclical downturns. Indeed, it seemed coupled with the drop in oil prices since midat midyear that the goal of achieving a reduction of autumn, have given the Federal Reserve greater inflation in the context of continued expansion latitude in recent months to focus on steps that might well be attainable. will aid in bringing about economic recovery without But in August the economy was jolted off course jeopardizing continued progress toward price by the Iraqi invasion of Kuwait. The surge in oil stability. prices that followed the invasion gave additional In fact, as it became clear that the inflationary impetus to inflation, and it also portended a weaken- spillover of the oil shock was being effectively ing of activity as the price increases cut sharply into contained, and that an appreciable economic contracdomestic purchasing power. Uncertainties about the tion posed the greater risk, the Federal Reserve did course of the economy were heightened enormously, ease policy markedly. Earlier in the second half, and household and business sentiment plummeted policy already had moved to a slightly more almost overnight, a response that perhaps grew in accommodative stance, first in July, to offset the part out of memories of the difficult adjustments that effects on the economy of apparent restraint in had followed previous oil shocks in the 1970s. At the private credit supplies, and again in October, when time of the invasion, and on into the autumn, prospective reductions in federal budget deficits sentiment also was being affected by the considerable enabled interest rates to decline. Over the balance of uncertainty that existed regarding the course of the year and into 1991, money market rates were fiscal policy. reduced substantially further through open market Actual production and spending held up for a time operations and two half-point decreases in the after the oil shock, but started to decline in early discount rate. In total, most short-term rates have autumn. The production cuts reduced real incomes fallen nearly 2 percentage points since mid-1990, still further and added to the cumulating forces of with most of the decrease occurring during the last few months, and long-term rates are about Vi percentage point lower than they were at midyear. 1. The charts for the report are available on request from Falling interest rates have contributed to an appre- Publications Services, Board of Governors of the Federal ciable decline in the dollar since mid-1990. Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

148 Federal Reserve Bulletin • March 1991 The behavior of the monetary aggregates and 1. Ranges for growth credit was an important consideration in the Federal of monetary and credit aggregates Reserve's decisions to ease policy over recent Percentage change, fourth quarter to fourth quarter months. M2 and M3 ended 1990 within the ranges Aggregate 1989 1990 1991 set by the Federal Open Market Committee (FOMC), |M2 3 to 7 3 to 7 2xh to6V4 but they were in the lower parts of those ranges, and M3 V/i to7V4 1 to 5 1 to 5 their expansion over the fourth quarter and into early Debt 6Vi to 10V4 5to9 xh to 8V4 1991 has been quite sluggish. The sluggishness of the aggregates during this period was worrisome because it suggested that the economy was weaker than anticipated and because it indicated the possi- levels of employment and real income; the other bility of some undesirable restraint on future was to contain and reduce inflation over time to spending through constricted credit intermediation maximize the efficiency of resource allocation and by depository institutions. In particular, the thrift long-range growth and to minimize the capricious industry has been contracting, and banks, concerned and inequitable effects of inflation on the wealth of about the credit quality of borrowers and facing savers. The translation of these objectives into pressures on capital positions, have become increas- specific ranges for money and debt was complicated ingly reluctant to lend, raising interest margins and by the effects of the ongoing restructuring of credit tightening nonprice terms. To bolster lending flows. Again this year, a number of insolvent thrift incentives, the Federal Reserve in December elimi- institutions are likely to be closed, with many of nated the reserve requirements on nonpersonal time their assets ending up at the Resolution Trust deposits and net Eurocurrency liabilities. Corporation (RTC) or disbursed to a wide variety To a significant extent, however, overall credit of investors; at other thrift institutions and at banks, flows have been sustained by sources outside restraints on lending may moderate a bit, but growth depositories; thus, debt of the domestic nonfinancial in depository credit is likely to continue to be sectors grew 7 percent in 1990 and ended in the constrained by pressures on capital positions. The middle of the FOMC's monitoring range for this rechanneling of credit outside depository institutions aggregate. The effective substitution of non- is expected to continue to distort the relationship of depository credit for depository credit made it money to income, buoying the velocities of both M2 possible to achieve a greater amount of nominal and M3. income and expenditure growth for a given expan- Taking account of these effects, the Committee sion of the money stock. One facet of this process decided that the ranges for 1991 that were chosen was a shifting by the public out of assets that are on a provisional basis last July remain appropriate included in the monetary aggregates and into for achieving its objectives. The ranges for M2 holdings of Treasury issues and other securities. and debt are V2 percentage point below those for Velocity, the ratio of nominal GNP to the money 1990—a further step to ensuring that longer-run stock, exhibited surprising strength: M2 velocity trends in money and credit growth are moving was about unchanged in 1990, even though declines toward consistency with the achievement of price in interest rates ordinarily are associated with falling stability. At the same time, they allow for money and velocity, and M3 velocity registered an unusually credit growth sufficient to support a rebound in the large increase. economy this year; moreover, the ranges should provide ample room for any policy adjustment that may be required by unanticipated developments in Monetary Policy for 1991 the economy or the financial sector as the year progresses. In considering its plans for monetary policy for The M2 range for 1991 is 2Vi to 6V2 percent. 1991, the Federal Open Market Committee focused Growth in this aggregate is expected to strengthen on two objectives, consistent with the goals of the from the sluggish pace of recent months, partly in Full Employment and Balanced Growth Act: One lagged response to the substantial easing of money was to foster an upturn in activity and thus higher market conditions over the past few months. While Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 149 2. Economic projections for 1991 FOMC members and other FRB presidents 1990 actual Range Central tendency Percentage change, fourth quarter to fourth quarter Nominal GNP RealGNP Consumer price index2 Average level in the fourth quarter, percent Unemployment rate 1. Average for the fourth quarter of the preceding year to the average for the 3. Percentage of the labor force. Actual and FOMC forecasts are for the fourth quarter of the year indicated. civilian labor force; Administration forecast is for the total labor force, 2. Actual and FOMC forecasts are for all urban consumers; Administration including armed forces residing in the United States. forecast is for urban wage earners and clerical workers. acknowledging some uncertainty about developing Economic Projections for 1991 velocity relationships, Committee members stressed that M2 expansion noticeably above the lower end The economic outlook is unusually difficult to assess of the range likely would be needed to foster a at this time, owing not only to the obvious uncertainsatisfactory performance of the economy in 1991. ties associated with the war in the Gulf, but also to The range of 1 to 5 percent for M3 was not some unresolved problems in the economy. Howreduced from that for 1990. That range was already ever, the members of the Board of Governors and at an unusually low level in recognition of the the presidents of the Reserve Banks, all of whom accelerated pace of the restructuring of the thrift participate in the discussions of the FOMC, believe industry. Credit growth in 1991 is expected to be that the most likely outcome is that the economy will moderate and to occur largely outside depositories. swing back into expansion later this year. At the Consequently, total funding needs of depositories same time, they also anticipate that inflation will be are expected to be damped, keeping the growth of much lower in 1991 than it was in 1990. M3 quite low and raising its velocity further. With regard to real gross national product, the The monitoring range for nonfinancial sector debt central tendency of the FOMC participants' forecasts for 1991 was set at AVi to 8V2 percent. Federal is for a gain over the four quarters of 1991 of 3A to borrowing is expected to be robust, owing in part to 1V2 percent. This is in line with the projection of the the RTC, and also to the effect of the weak economy Administration, which anticipates an output gain of on the federal budget deficit. By contrast, borrowing 0.9 percent. With these GNP forecasts so similar, by domestic nonfederal sectors is likely to be slow, the forecasts of unemployment also are about the though still consistent with a rebound in the econ- same: The Committee's central tendency projections omy. On the demand side of the credit market, fall in a range of 6V2 to 7 percent in the fourth quarter households and businesses appear to be returning to of 1991, a range that brackets the Administration sounder financial practices, seeking a healthier forecast. On the other hand, the Board members and balance between debt and the income available to Reserve Bank presidents are more optimistic on service it. At the same time, restraints on the supply average than is the Administration with regard to the of credit also may continue to play a role, with some prospects for reduced inflation. The central tendency private borrowers facing higher interest rates and range for the CPI increase this year—3% to 4 pertighter nonprice terms on credit, in part because of cent—compares with an Administration projection the stresses faced by many intermediaries. In that of 4.3 percent. The Administration's forecast for regard, the Federal Reserve is working with other nominal GNP is at the upper end of the FOMC federal regulatory agencies to ensure that bank central tendency range and thus also would be supervisory practices, while prudent and fair, do not compatible with the FOMC's monetary ranges. unduly impede the flow of funds to creditworthy In discussing their projections, the Board memborrowers. bers and Reserve Bank presidents stressed that the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

150 Federal Reserve Bulletin • March 1991 war introduces a major imponderable into an outlook these forecasts is that oil prices will hold in their that, even before, had been subject to considerable recent range, at a much lower level than prevailed uncertainty. The demands of the war on the econ- through the autumn of 1990. The pass-through of omy are not fully clear at this point. Nor is it possible these lower oil prices to consumers is expected to to forecast with any precision how household and result in a sharp decline in retail energy prices. In business confidence will respond to the course of addition, increases in wages and benefits seem likely events in the Gulf. Among the significant unresolved to be more moderate this year, reducing the pressures economic and financial problems elsewhere in the of labor costs on profit margins and prices. To be economy are those in the real estate markets; sure, there are some near-term negatives in the commercial construction, in particular, still is inflation picture: Labor expenses are being boosted plagued by a large overhang of vacant space that will by legislated increases in employers' contributions severely limit new construction for some time to for social security and by a further rise in the come. On the financial side, the overexuberance and minimum wage, and prices are being affected by a loose lending practices of the 1980s have given way rise in postal rates and increases in various excise to large losses and extreme caution among some taxes. All told, however, the coming year appears lenders, who may not be able or willing at present to likely to be one in which overall price increases will shift quickly back toward more normal lending be considerably smaller than in 1990 and in which behavior. Because of these problems, the Board the downward tilt of the underlying inflation trend members and Reserve Bank presidents perceive should begin to stand out more clearly. that, in the near term, the risks to the economy may be skewed to the downside. On the other hand, some of the potential underpinnings of recovery also are evident. For example, THE PERFORMANCE OF THE ECONOMY IN 1990 with the further decline in oil prices since the start of 1991, much of the surge that followed the Iraqi When 1990 began, the economy was in its eighth invasion of Kuwait now has been retraced; in a year of expansion, and it remained on a positive reversal of the effects seen earlier, this drop in oil course into the summer. During this period, probprices is taking pressure off inflation, and it also is lems were evident in some sectors of the economy, augmenting real purchasing power, which will help notably construction, where activity was being to bolster spending. Also working in the direction of damped by the persistence of high vacancy rates, supporting spending is the decline in interest rates and finance, where a significant number of institusince the spring of 1989. In contrast to past business tions were encountering difficulties that reduced cycles, when declines in rates usually did not come their ability or willingness to provide credit. Overall, until the economy was softening, this decline began however, production and spending still were on a far in advance of the peak in activity, and its effects course of expansion at midyear, and while the rate of on spending should begin to be felt, especially in price increase had not yet started to abate, there were sectors like housing, where affordability has been indications that the groundwork for achievement of considerably enhanced over the last year and a half. slower inflation was coming into place without Meanwhile, the prospects for exports, and for our major disruption to the economy. overall trade and current account balances, continue Then, in early August, the Iraqi invasion of to look favorable, given the improved competitive- Kuwait set off a chain of events that gave further ness of U.S. producers. And, any pickup in final impetus to inflation and tilted the economy from a demand, whether from domestic buyers or from path of slow growth to one of contraction. Declines abroad, should translate fairly quickly into increased in output and employment were widespread during production, in view of the success that businesses the remainder of 1990. Real gross national product seem to have had in preventing a buildup of fell at an annual rate of about 2 percent in the fourth inventories in recent months. quarter, and the gain over the four quarters of the As noted above, the Board members and Reserve year amounted to only 0.3 percent. The civilian Bank presidents project a marked slowing of unemployment rate, which had held around 5 % perinflation in 1991. A key assumption underlying cent through the first half of the year, moved up Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 151 steadily in the second half, to 6.1 percent in ness fixed investment, and a swing in inventories December. In January of this year, the rate edged up from moderate accumulation late in 1989 to decumufurther, to 6.2 percent. The consumer price index lation in the fourth quarter of 1990. rose 6.1 percent from December of 1989 to Decem- As was true during much of the long expansion of ber of 1990, the largest annual increase in nearly a the 1980s, economic trends in 1990 varied appreciadecade. bly across different regions of the country. The New A key link in the chain of events after midyear England economy, which had been very strong was a surge in the price of crude oil, from around through much of the 1980s, slumped in 1990; by $20 per barrel in the spot markets in late July to more year-end, unemployment rates in that region had than $40 per barrel in early October. That surge sent moved well above the national average. By contrast, the prices of energy products soaring, sapped the economies of many locales with heavy concenhousehold purchasing power, and put further pres- trations of manufacturing—especially capital goods sures on business profits, compounding the squeeze manufacturing—held up fairly well until the oil brought on by rising costs and sluggish sales. shock; the continued growth of exports supported Another, less tangible link was the enormous activity in those areas. The farm economy was uncertainty about how, and when, tensions in the relatively strong again in 1990, although some Mideast might be resolved. Symptomatic of that indications of softening did show up in the second uncertainty, the various indicators of household and half. Energy producers benefited from the climb business sentiment remained low toward the end of in oil prices; exploration and drilling activity was 1990, even as oil prices dropped back part of the way restrained, however, by the great uncertainty regardfrom their October peaks. ing the future course of oil prices. While surging energy prices accounted for much of the acceleration in inflation in 1990, they were by no means the only source of upward price pressure. The year-to-year rate of increase in the CPI exclud- The Household Sector ing food and energy—a rough indicator of basic inflation trends-maintained a gradual upward tilt through the first three quarters of 1990, peaking at a In midsummer, consumer spending still was on an rate of 5.5 percent in August and September; a slight uptrend, and it edged up a little further after the oil easing of price pressures over the balance of 1990 shock, peaking in September. But with real incomes brought that rate back down to 5.2 percent by being dragged down by slumping employment and year-end. The year-to-year rate of increase in soaring energy prices, the rise in spending eventually nominal labor compensation, as measured by the ran out of steam. Real outlays fell at an annual rate of employment cost index, also moved up in the first 3 percent in the fourth quarter; the quarterly drop half of 1990; after midyear, however, wage pres- likely would have been greater but for tax changes sures moderated, and the rise in nominal compensa- that caused some households to make purchases in tion over the year ended up at 4.6 percent, slightly advance of the turn of the year. less than the increases recorded in each of the two The declines in real income and spending in the previous years. latter part of the year essentially reversed the Support for growth of real activity continued to moderate gains made earlier. Over the year, aftercome from the external sector in 1990, as real tax income was down about V2 percent in real terms; exports of goods and services rose 5 percent over the real consumption spending was up over the four four quarters of the year; this gain, however, was quarters of 1990, but only fractionally. The personal considerably smaller than the increases seen in each saving rate rose over the first half of the year, but of the four previous years. Gross domestic pur- then dropped about 1 percentage point in the last two chases, the broadest indicator of domestic demand, quarters. This drop in the saving rate after midyear fell about % percentage point, on net, over the four was a little surprising from one perspective, in that quarters of 1990; within this category an increase in an unprecedented plunge in consumer attitudes government purchases was more than offset by between July and October might have been expected weakness in consumption, homebuilding, and busito generate some increase in precautionary saving. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

152 Federal Reserve Bulletin • March 1991 Moreover, many households had suffered losses of influences, most of which appeared to enter on the wealth because of decreases in house prices or in the demand side of the equation. The downshifting of value of securities they held; these developments real income growth after the start of 1989 may have would seem to have called for a shift toward reduced led households to view their longer-run prospects in consumption out of current income. But, while such a more cautious light and to hold back from housing forces may well have been at work, they apparently investments that they might otherwise have underwere outweighed by a tendency of households to dip taken. In addition, the unwinding in some regions of into savings in the short run when faced with a the country of real estate booms seen in the 1980s sudden surge in expenses for energy. tarnished the attractiveness of housing as a longer- Patterns of change in the various categories of term investment. These negative developments came consumer spending were mixed in 1990. Real at a time when housing demand already was being outlays for services continued to trend up over the restrained by a much slower rate of growth of the year, but at a slower pace than during most years of adult population than was seen in the 1970s and early the expansion; on a quarterly basis, growth in these 1980s. outlays was quite erratic, owing largely to weather- Builders cut back sharply on new construction in related volatility in gas and electric bills. Real 1990. The annual starts of single-family units fell outlays for nondurables fell 2!4 percent over the 11 percent from their 1989 level, and starts of course of the year, an unusually large decline by multi-family units declined about 20 percent, from historical standards. The drop presumably was an already low level. However, these reductions in brought on in large part by the downturn in real starts still were not large enough to balance the income over the four quarters of 1990, the first such market. The supply of unsold new homes, measured decline since 1974. relative to the pace of sales, jumped sharply in the The real outlays for consumer durables fell first part of 1990 and then remained high over the % percent over the four quarters of 1990; they had rest of the year; the vacancy rate on multifamily fallen about V/2 percent in 1989. The drop in 1990 rental units dipped temporarily in the spring, but was accounted for by a second year of decline in the later bounced back up to the high levels seen over purchases of motor vehicles. Outlays for the other most of the period after 1986. durables—furniture, household equipment, and the In some instances, new construction activity was like—were up about V2 percent on net over the four deterred in 1990 by the difficulty that prospective quarters of 1990, after having grown at a moderate builders had in obtaining credit. Failures of thrift pace in 1989. These patterns of change in spending institutions severed established credit relationships seemed to reflect both macroeconomic forces, for some builders, and the thrift institutions that notably the slower pace of real income growth after survived moved toward more conservative lending the start of 1989, and the normal workings of policies, either out of choice or in response to the household investment cycles. With regard to the more stringent capital requirements and lending latter, household spending for cars, trucks, and limits mandated by the Financial Institutions Reother consumer durables over the 1983-88 period form, Recovery, and Enforcement Act. Banks also were almost 50 percent above the average for the six were cautious about extending credit to builders; best years of the 1970s. By 1989 many households with large volumes of problem loans already on their may have reached a point where they were in effect books, banks were very sensitive to the poor con- "stocked up" and therefore well positioned to delay ditions in many local housing markets. making new purchases if the timing currently did not In contrast to builders, potential homebuyers did seem right. not seem to have serious problems in obtaining Spending for residential construction got a transi- financing in 1990; mortgage credit remained readily tory boost from good weather in the first quarter of available, and the spreads between mortgage rates 1990, but then fell sharply in each of the three and the rates on other long-term loans actually subsequent quarters. Over the year as a whole, narrowed. For the most part, consumer credit also residential investment outlays declined 8% percent appeared to be readily available, as lenders exhibited in real terms; they had dropped 7 percent in 1989. only a mild tendency to tighten standards on this This slump in homebuilding reflected a variety of generally profitable line of business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 153 The Business Sector quarter of 1990 accounted for all of that quarter's drop in real GNP. The business sector began 1990 on a rather shaky After registering relatively strong gains in each note. Profits had declined during 1989, and over- year from 1987 to 1989, business outlays for fixed hangs of business inventories had developed in the investment rose only 1 percent in real terms over second half of that year in some markets, notably the four quarters of 1990. Spending was affected autos. In manufacturing, production growth had by the squeeze on profits, the easing of pressures on been restrained late in 1989, and output dropped capacity, and the heightened uncertainties regarding sharply in January of 1990, led by a steep cutback in the business outlook. These influences showed auto assemblies. But conditions improved over the through most clearly in the outlays for equipment. next few months. Industrial production rose fairly Real spending for computers and other information briskly, in fact, from January into midsummer, and processing equipment rose 3 percent on net over the drop in business profits was halted for a time. the four quarters of 1990; growth had averaged From August on, the business climate was 15 percent per year over the first seven years of the dominated by the oil shock and its attendant expansion. In addition, outlays for industrial equipuncertainties. After peaking in September, industrial ment turned down in 1990, as the deterioration of production plummeted over the last three months of profits and the falloff in operating rates took their 1990, and it closed out the year about IV2 percent toll. Business purchases of motor vehicles bounced below the level of a year earlier. The operating rate around from quarter to quarter, but held in essentially in industry also fell sharply over the latter part of the the same range that they have been in for the past year, back to where it had been in early 1987, before several years. By contrast, business outlays for capacity pressures started developing in that year. aircraft, which have been very strong in recent With volume declining and costs on the rise, years, rose further in 1990. corporate profits undoubtedly went into renewed Nonresidential construction declined 5 percent decline in the fourth quarter (the official data are not over the four quarters of 1990. Weakness was yet available); for 1990 as a whole, the share of concentrated mainly in the outlays for offices and profits in total GNP was the lowest of any year since other commercial structures, which together ac- 1982. count for about one-third of the total. An excess Serious overhangs of business inventories were supply of these structures developed in many not apparent when the oil shock hit in August, and cities during the building boom of the mid-1980s, prompt production adjustments that followed the and despite sharp cutbacks in construction after shock forestalled stockbuilding in the ensuing 1985, vacancy rates remained high through months. Indeed, real manufacturing and trade 1990. Reflecting this continued imbalance-and inventories fell slightly on net between the end the reluctance of creditors to finance new projects of July and the end of November. Under the cir- in this troubled sector of the economy—the incumstances, however, these reductions clearly dicators of future activity, such as the data were not great enough to get actual stocks down to on new contracts and building permits, contindesired levels. In wholesale and retail trade, sales ued to have a decidedly negative cast through declined sharply from July to November, and the the second half of 1990. Spending for industrial constant-dollar ratios of inventories to sales in these structures rose over the first three quarters of 1990, sectors moved up to levels that were around the but fell sharply in the fourth quarter, and the upper end of the ranges seen over the past two or indicators of future construction continued to three years. The inventory-sales ratio in manufac- weaken. As noted previously, investment in oil turing also edged up on net between July and drilling remained subdued in the second half of November, and manufacturers continued to cut 1990, despite the rise in oil prices; in some inoutput through the end of 1990 and into early 1991. stances, drillers may have been hampered by Over 1990 as a whole, the level of real business shortages of experienced crews, but, more imporinventories declined about $3 billion, according to tant, the uncertainty about whether prices would preliminary estimates. The rapid reductions of remain high enough to justify stepped-up investment nonfarm inventories that were seen in the fourth prompted a cautious response. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

154 Federal Reserve Bulletin • March 1991 The Government Sector federal purchases of goods and services increased 4.4 percent, on net, over the year; nondefense In the government sector, budgetary pressures purchases were up 3.6 percent and defense purintensified in 1990. At the federal level, the rate of chases, which had registered moderate declines in growth of receipts slowed to 4.1 percent in fiscal each of the three previous years, increased 4.7 peryear 1990, less than half the rate of increase in the cent in 1990. The rise in defense purchases came previous fiscal year and more than 1 percentage mainly in the fourth quarter of the year and point below the rate of growth in nominal GNR apparently reflected, in part, outlays associated with Meanwhile, spending jumped 9.4 percent in fiscal Operation Desert Shield. 1990, and the federal budget deficit increased to The deficit in the combined operating and capital $220 billion, up $67 billion from the 1989 fiscal year accounts of state and local governments (excluding and well above the target for 1990 that had been laid social insurance funds) averaged $30 billion at an out in the Gramm-Rudman-Hollings legislation. annual rate over the first three quarters of 1990, and Finding a way to get back on track toward deficit it appears to have widened considerably further in reduction occupied the Congress and the Adminis- the fourth quarter as the recession cut into tax tration through much of 1990; an agreement that was receipts. State and local budgets first moved into reached in October prescribed new targets and new deficit in late 1986, and they have slipped further procedures for the five-year period starting in the into the red in each succeeding year. At the same 1991 fiscal year. time, concerns have intensified about the repayment Part of the slowing of receipts in the 1990 fiscal abilities of some state and local governing units; as year stemmed from the weakness in corporate evidence of this, the downgradings of state and local profits; collections from that source fell almost $10 credit ratings outnumbered upgradings by a wide billion. In addition, the growth of tax receipts drawn margin in 1990. from the incomes of individuals slowed appreciably, In an effort to strengthen their finances, many from 11 percent in 1989 to a bit less than 5 percent in state and local governments have raised taxes in 1990; this slowdown mainly reflected the absence in recent years. Reflecting those increases, total state 1990 of transitory factors that had led to the big jump and local receipts moved up faster than nominal in these receipts in 1989. On the expenditure side GNP both in 1989 and through the first three quarters of the ledger, about one-third of the increase of of 1990. In addition, spending has been scaled back $108 billion in nominal federal outlays in fiscal 1990 from planned levels in many cases. Overall, howwas attributable to federal deposit insurance pro- ever, the efforts to control spending have collided grams; the main portion of these outlays went to with the growing demands for services that state and honor obligations to holders of deposits in failed local government traditionally have provided for thrift institutions. Spending also moved up rapidly such things as education, public protection, and in 1990 for entitlements. The outlays for medicare health and income support. Thus, while the growth rose 15 percent, pushed up by continued rapid of state and local outlays has slowed from the rate of inflation in health costs and an expansion in the rise seen earlier in the expansion, it nonetheless has number of beneficiaries. Outlays for social security been running above that of total GNP. The nominal and other income security programs, which together rise in state and local purchases of goods and seraccount for close to one-third of total federal vices over the four quarters of 1990 was 7.9 percent; spending, rose about IVi percent in fiscal 1990, a in real terms, purchases grew 2.5 percent over the pickup from the pace of recent years. Net interest year. outlays, which now account for almost 15 percent of total spending, also continued to climb rapidly. Federal purchases of goods and services, the The External Sector portion of federal spending that is included directly in GNP, increased 5.5 percent in real terms over the The merchandise trade deficit narrowed from $115 four quarters of 1990. Excluding changes in the billion in 1989 to a bit less than $110 billion in 1990, inventories owned or financed by the Commodity a degree of improvement that was smaller than that Credit Corporation, which tend to be very volatile, seen in either of the two preceding years. A surge in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 155 the price of oil imports in the second half of the year Boeing strike of late 1989 ended. Over the next two led to a jump in the value of imports. In addition, quarters, real exports changed little on net. Growth trade flows during the year were influenced to some of activity in the major U.S. export markets slowed extent by lagged effects of the firming of dollar noticeably in the middle of the year; outright exchange rates that had taken place in the first half of recessions developed in Canada and the United 1989. The current account balance averaged $93 bil- Kingdom. In the fourth quarter, export growth lion, at an annual rate, during the first three quarters picked up again, probably largely in response to the of 1990, down from a total of $110 billion in 1989; gains in U.S. price competitiveness that took place the improvement in this account was greater than during the year. Export prices rose moderately that in the trade account owing to a strengthening of during the year. net receipts from service transactions, those involv- Merchandise imports excluding oil grew only ing such things as travel, education, and finance. 2 percent in real terms during 1990, less than half the Measured in terms of the other Group of Ten pace recorded in 1989. The deceleration in imports (G-10) currencies, the foreign exchange value of the reflected the net decline in total domestic demand in U.S. dollar depreciated about 12 percent from the United States during the year. The quantity of oil December 1989 to December 1990. This deprecia- imports fluctuated during the year, but was up only tion extended a decline that began in mid-1989 and slightly for the year as a whole. At an average rate more than reversed the earlier appreciation. Ad- of about 8.3 million barrels per day, oil imports justed for movements in relative consumer price accounted for roughly half of total domestic conlevels, the dollar's decline in 1990 was slightly less sumption of oil in 1990. The price of imported oil than it was in nominal terms, as inflation in the surged to an average level of nearly $30 per barrel in United States exceeded somewhat the weighted the fourth quarter, after having fluctuated in a range average of inflation rates in the other G-10 countries. of $15 to $20 per barrel for nearly two years. In real terms, the weighted-average dollar in The current account deficit of $93 billion at December 1990 was at about its low of 1980; the an annual rate over the first three quarters of 1990 huge appreciation in average exchange rates in the was matched by a recorded net capital inflow of first half of the 1980s thus has been reversed. $26 billion and a large positive statistical discrepancy The decline in the dollar in 1990 was broadly in the international accounts. Part of the statistical based against the Japanese yen, the German mark, discrepancy may have reflected increased holdings and other European currencies. The dollar also of U.S. currency by foreigners responding to the declined about 10 percent against the Singapore unsettled political conditions in many parts of the dollar, but it appreciated about 5 percent against the world. currencies of South Korea and Taiwan, partially The recorded net inflow of capital was more than reversing declines of the preceding few years. The accounted for in net transactions reported by banks, weakness in the dollar against the G-10 currencies which were mainly for the banks' own accounts. over the past year reflected primarily the influence Transactions in securities showed a net outflow, as of different trends in interest rates in the United foreigners reduced their rate of net purchases of States and other major industrial countries. Whereas U.S. corporate and Treasury bonds and actually U.S. short-term interest rates trended down through made net sales of U.S. corporate stocks, while the the year and long-term rates were about unchanged rate of U.S. net purchases of foreign securities over the year as a whole, foreign short-term rates increased. The recorded inflow of direct investment rose by an average of about Vi percentage point, and from abroad dropped sharply from the rates recorded foreign long-term rates rose by an average of about 1 in 1988 and 1989; foreign acquisitions in the United point. Official intervention in foreign exchange States remained strong, but a much greater portion markets was small in 1990. were being financed here rather than abroad. The U.S. merchandise exports grew IV2 percent in flow of U.S. direct investment abroad picked up, in real terms over the four quarters of 1990, after rising part reflecting strong U.S. acquisitions abroad. Forabout 12 percent in 1989. Merchandise exports eign official assets in the United States increased $11 grew rapidly in the first quarter, boosted in part by a billion over the first three quarters of 1990, and U.S. strong recovery of exports of aircraft after the official holdings of assets abroad declined slightly. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

156 Federal Reserve Bulletin • March 1991 Labor Markets during cyclical slowdowns in the economy. Still, the drop in participation in 1990 left some questions Payroll employment increased in each month in the regarding the future trend in the growth of labor first half of 1990 and fell in each month of the second supply. A downshifting in the growth of labor half. The declines of July and August, however, supply, to the extent that it is not due solely to reflected layoffs of federal workers who had been cyclical factors, would tend to translate one-for-one hired temporarily to conduct the 1990 Census. In the into slower growth of potential output over time private nonfarm sector, employment continued to unless there were at the same time an offsetting edge up into August and did not turn down decisively pickup in labor productivity, of which there has been until October. More than half a million jobs were little, if any, evidence of late. lost over the final three months of the year. Over the The flatness of the unemployment rate through the year as a whole (December to December), the first half of 1990 brought to seven quarters the length number of jobs in the private nonfarm sector of time during which the rate had held tightly around increased about 250,000 on net, but much of that the 5 VA percent mark and extended to nearly three small gain was wiped out by the further drop in years the length of time during which the rate had employment in January of this year. been below 6 percent. Not since the first half of the Sectoral patterns of employment change varied 1970s had the unemployment rate been at such low considerably in 1990. Employment in manufacturing levels for so long. This period of low unemployment, fell about 585,000 from December of 1989 to unfortunately, also was a period of sharply increased December of 1990; losses of factory jobs proceeded wage inflation. After rising about 3 lA percent in both at a slow and fairly steady pace through the first half, 1986 and 1987, the employment cost index for but then accelerated after the onset of the oil shock. compensation, which includes the cost of workers' The troubled construction sector shed roughly one- benefits, as well as wages and salaries, moved up quarter of a million jobs over the course of the year; about 43A percent in both 1988 and 1989; and in the after a weather-related jump early in the year, the first half of 1990, the year-to-year rate of increase in declines went on almost without interruption through this measure of compensation rose still further, to December. Employment in retail and wholesale 5V4 percent. trade was down slightly on net over the course of Labor market tightness was not the only factor 1990, as small gains through the first seven months putting pressure on wages and compensation beof the year were more than offset by sharp declines in tween the end of 1987 and the middle of 1990. The the fourth quarter. The number of jobs in the ser- updrift in inflation caused workers to press for vices industries increased in each month of 1990, nominal increases in wages and benefits that were but the rate of gain slowed progressively over the big enough to keep real incomes on a reasonably year; health services was the only major area in even keel, and with labor in short supply, businesses which hiring was going on with much vigor at found it necessary to accede to hefty increases to year-end. attract and keep workers. The actions of government Growth in the supply of labor was quite subdued also added to cost pressures: A further rise in social in 1990. The civilian labor force increased only security taxes in 1990 added 0.2 percent to total 0.5 percent on a December-to-December basis, the compensation, and a boost in the minimum wage smallest annual gain in almost thirty years. Part of may have added another 0.1 percent. the explanation for this slow labor force growth is A marked slowing of wage pressures emerged in that the working-age population has not been the second half of 1990, and the year-to-year rate of growing very rapidly in recent years. In addition, increase in the employment cost index for compenthe share of the working-age population that chose to sation dropped back to 4.6 percent by the end of the participate in the work force declined in 1990, by year. Although workers' real incomes were battered enough to cut labor force growth to about half of by the surge in energy prices during this period, what it would have been had the participation rate attempts to regain those income losses appear to remained unchanged. The sluggishness of the labor have been overwhelmed by the increase in labor markets in 1990 no doubt discouraged some potential market slack and associated concerns about job entrants from seeking jobs, as typically happens security. The efforts of management to contain costs Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 157 in a time of declining profits probably also were a Persian Gulf set off a scramble for inventories by factor helping to limit wage increases during this refiners and others seeking to guard against a possible period. further disruption in supplies. The price of oil The performance of productivity was subpar for a fluctuated widely in this period, but generally second successive year in 1990. Output per hour in maintained an upward trend into early October. By the nonfarm business sector edged down 0.1 percent then, however, the losses of oil from Iraq and over the four quarters of the year, after having Kuwait were being fully offset by increased producdropped 1.6 percent in 1989. More than likely, the tion from other countries, and demand was weakenbehavior of productivity over this two-year period ing. As a result, oil prices turned down and held on a mainly reflected typical cyclical influences, namely choppy downward pattern through the end of the the tendency of firms to adjust output faster than year, retracing about half of the runup that had hours in response to a slowing of demand. Unit labor occurred between August and early October. A costs increased about 4x/2 percent over the four further steep drop came in mid-January of 1991, quarters of 1990, the largest annual rise since 1982. when initial successes of the coalition forces in the Gulf war seemed to signal a greatly diminished potential for disruption of world supplies. Price Developments The CPI for fuel oil also turned down over the last two months of the year, but gasoline prices again All of the major price indexes—the consumer price held firm, supported this time by a five cent per index, the producer price index, and the GNP price gallon rise in the federal excise tax that took effect on indexes-rose faster in 1990 than they did in 1989. December 1. Over the year, fuel oil prices increased In general, the increases seen in 1990 also were the about 30 percent at the consumer level, and gasoline largest since those of the early 1980s. In all of the prices were up almost 37 percent. By contrast, measures, the pickup in the rate of price increase in increases over the year in the prices of the service 1990 basically reflected the effects of the oil shock in fuels (natural gas and electricity) were quite small— a situation in which underlying inflation pressures in the range of IV2 to 2 percent; reaction of these already were well entrenched. Acceleration was prices to the oil shock apparently was damped by especially pronounced in those indexes, such as the ample supplies of natural gas and coal, as well as the CPI, that measure price change for goods and customary lags in adjusting rate structures at retail. services purchased by domestic buyers, as the surge The consumer price index for food rose 5.3 perin oil import prices had a particularly strong effect cent in 1990; this increase was about the same as on these measures. By contrast, the GNP price those seen in 1988 and 1989. Over the preceding few measures, which cover goods and services produced years, food price increases had tended to run more in domestically, exhibited a less pronounced degree of the 3 to 4 percent range. To a considerable degree, acceleration this past year. the continued sharp increases in food prices in 1990 The CPI for energy rose 18 percent from Decem- seemed to reflect underlying inflation processes ber of 1989 to December of 1990. Although the bulk similar to those at work in other sectors of the of the 1990 rise came after the start of August, economy. In addition, prices were affected by the intermittent pressures had surfaced earlier in the changing supply conditions in agriculture. Producyear. A severe bout of cold weather at the end of tion of beef and pork declined in 1990, and their 1989 cut into the inventories of heating oil, disrupted prices at retail increased 9 percent and 17 percent operations at several refineries, and caused the respectively over the course of the year. Dairy prices of fuel oil and gasoline to soar. After January, production, which had fallen in 1989, turned up in 1990; but with stocks initially at low levels, the rise fuel oil prices fell back, but gasoline prices remained in production did not have a damping effect on prices relatively firm into the summer as still more supply at retail until relatively late in the year. The spell of interruptions prevented a rebuilding of stocks. cold weather late in 1989 led to a surge in the prices The August invasion of Kuwait set off another of orange juice and fresh vegetables early in 1990; round of steep price increases. World oil production toward the end of 1990, another cold snap destroyed dropped temporarily after the invasion, and the citrus crops in California and boosted citrus prices. uncertainties associated with the tensions in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

158 Federal Reserve Bulletin • March 1991 By contrast, big wheat crops here and abroad in 3A percentage point less than in either of the 1990 caused wheat prices to plunge and led to some preceding two years. In manufacturing, the presrebuilding of stocks; at retail, the CPI for cereals and sures from rising wages and soaring energy costs bakery products slowed from an increase oflVi per- were partly damped by continued rapid gains in cent in 1989 to one of AVi percent in 1990. productivity and softening demand. The prices of The CPI for nonenergy services, which accounts intermediate materials excluding food and energy for more than half of the total CPI, rose 6 percent rose 1.9 percent during 1990, the second year in a during 1990, after an increase of 5.3 percent in row in which increases for that category have been 1989. The prices of medical services, which have small; materials prices had increased sharply in been rising rapidly for many years, were up 1987 and 1988. The spot prices of raw industrial 9.9 percent in 1990; they had increased 8.6 percent commodities moved up on net in the first half of in the previous year. The cost of tuition, another 1990, held firm through September, and then fell category where pressures have been evident in the rapidly in the fourth quarter as the economy CPI for some time, rose more than 8 percent in weakened; further declines in these prices have been 1990, about the same as in 1989. Elsewhere in the evident in the early part of 1991. services sector, prices soared for public transportation and lodging. Airlines, which were hit hard by the surge in energy costs, raised their fares almost MONETARY AND FINANCIAL DEVELOPMENTS 23 percent over the year. Price increases for other DURING 1990 forms of public transportation were in the 6 to 7 percent range, and the CPI for out-of-town lodging Monetary policy has been progressively eased since advanced nearly 16 percent over the year. Increases mid-1990, resuming the trend begun in 1989. The in the costs of many publicly provided services— Federal Reserve has acted against the backdrop of a such as water and sewerage maintenance and refuse weakening economy, sluggish money growth, collection—also were large in 1990; these increases improved inflation prospects, greater fiscal restraint, probably reflected the needs of municipalities to and indications of tightening credit to private borraise revenue, as well as environmental imperatives rowers. In response to the System's actions and to in some instances. developments in economic activity and prices, short- The CPI for commodities excluding food and term interest rates, as of mid-February, were nearly energy rose 3.4 percent in 1990, after increasing 2 percentage points below those prevailing at the 2.7 percent in 1989. Within this category, tobacco time of the Board's July report to the Congress, and prices again registered a particularly large increase, long-term rates were down about V2 percentage about 11 percent over the course of the year. This point. increase partly reflected the pass-through to consum- After an initial small cut in money market rates in ers of a jump in manufacturers' prices; in addition, July, policy was held stable for a brief period, in governments continued to view excise taxes on light of the sharp jump in world oil prices that tobacco products as an attractive way to boost occurred in the wake of the Iraqi invasion of Kuwait. revenues. The CPI for apparel was up 5 percent in This shock implied an uncertain combination of 1990; apparel prices had changed little over the increased prices and reduced economic activity. The course of 1989, and the 1990 rise may therefore magnitude of the impact would depend on the extent have been, in part, an effort to restore margins. New of the disruption in world oil markets, which could car prices continued to rise, even as sales declined; not be forecast with precision. As it became clear in by contrast, the prices of used cars were down a bit the autumn that the risks of increased inflation were for a second year. The prices of many household fading relative to the risks of a downturn in ecoappliances fell in 1990, extending the gradual nomic activity, the Federal Reserve moved aggresdownward trends seen in previous years. sively, using a variety of instruments. Open market Apart from energy, increases in producer prices operations and a reduction of 1 percentage point in were comparatively moderate in 1990. The producer the discount rate, taken in two steps, have brought price index for finished goods excluding food and overnight rates down 13A percentage points since energy rose 3.5 percent over the year, about late October; in addition, reserve requirements were Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 159 reduced in early December to foster easier credit Around that time, growth of the broader monetary conditions. aggregates began to slow appreciably. To a large In the formulation of policy in 1990, the Federal extent, the weakness in the aggregates was associated Reserve continued to examine a variety of informa- with a redirection of credit flows away from tion bearing on developments relating to economic depository institutions, related mainly to the ongoing activity and prices. Over the year, certain develop- restructuring of the thrift industry but also to an ments in financial markets took on special signifi- apparent decrease in the willingness or ability of cance for the economy and monetary policy. The banks to lend. For the most part, the decline in cost and availability of credit was monitored in light depository credit was expected to be taken up by of indications that tightening credit supplies were other lenders, with minimal impact on the overall constraining output to a greater degree than was cost and availability of credit. M3 velocity in desirable. In addition, considerable attention was particular was expected to be boosted substantially paid to money stock movements, especially in the in the process, and the FOMC at its July meeting latter part of 1990 and into 1991, when money reduced the annual target range for this aggregate by growth virtually stalled. The Federal Reserve IV2 percentage points. By mid-July, it was increasrecognized that the relation of the monetary aggre- ingly apparent that the pullback by depositories was gates to broad measures of economic performance constricting credit supplies to some classes of borremained subject to considerable uncertainty, but rowers, and the Committee eased reserve conditions the marked sluggishness of money growth was seen to bring down interest rates slightly to offset the as suggesting both weak contemporaneous growth effects of this tightening of credit conditions on an of income and spending and the existence of already soft economy. constraints on the availability of credit through The invasion of Kuwait at the beginning of August depository institutions that could adversely affect fundamentally altered the environment for monetary spending in the future. policy. World oil prices soared, and a considerable measure of uncertainty was added to the outlook for the economy, complicating the formulation of The Implementation of Monetary Policy monetary policy. Business and consumer confidence plummeted, and the adverse effects of high oil prices During the first half of 1990, the Federal Reserve on the public's spending plans, domestic economic took no actions in reserve markets designed to activity, and inflation soon became apparent. As produce changes in money market interest rates. volatility in financial markets increased, heightened Federal funds—overnight interbank loans of imme- investor preference for liquidity and safety was diately available funds—traded around the 8U per- evident: Treasury bill rates fell over August and cent level that had been established in December September while private short-term rates changed 1989, and other short-term rates were little changed little; money market mutual funds experienced large as well. Throughout this period economic activity inflows, boosting growth of the monetary aggregates continued to grow, the unemployment rate held late in the summer as investors apparently fled stock steady, and there were no clear signs of abatement in and bond markets; and the ongoing decline in the inflation. foreign exchange value of the dollar was halted for a while by safe-haven demands. Yields on longer-term debt instruments rose considerably during the early months of the year, In these circumstances, the benefits of any easing restoring the yield curve's usual upward tilt, which action taken to cushion the possible effects on output had been absent for much of 1989. This rise in in the near term needed to be weighed against the long-term rates reflected a stronger economy than potential for embedding higher energy prices in the some had expected, increased concerns about price level and, more important, into inflationary inflation, and higher foreign interest rates. As the expectations, a reaction that ultimately would second quarter progressed, however, bond rates undercut sustainable economic growth. Policy began to recede, responding to a shift in sentiment decisions were further complicated by the fact that the military and political situation underlying the oil about the strength of the economy and the likely path price shock was so fluid; in fact, it clearly was a of monetary policy. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

160 Federal Reserve Bulletin • March 1991 war-risk premium rather than a current shortage of diminished, it seemed more likely that the effects of supply that was maintaining a higher price of crude higher oil prices would not be built into ongoing oil. The possibility existed that any substantial moves inflation trends. Market interest rates declined across in monetary policy might prove ill-advised as the maturity spectrum, although these declines were circumstances changed, and it appeared that the most pronounced for government obligations owing most constructive role monetary policy might play, to heightened concerns about credit quality, which until the balance of risks was clarified, would be to drew investors toward high-grade assets. foster a sense of stability in the very nervous financial Financial strains were experienced by more and markets. more lending institutions, as problems emerged in As it was, financial markets had to contend not many real estate portfolios and as a growing number only with the Gulf crisis during the late summer and of highly leveraged firms ran into trouble. Efforts by early fall, but also with uncertainties surrounding banks and other lenders to protect or improve their the timing and extent of a reduction in the federal capital positions as their loan portfolios deteriorated budget deficit. Yields were buffeted whenever the were reflected in widespread signs of cutbacks in the odds of a meaningful deficit-reduction package availability of credit and increases in its cost, appeared to change. For example, Treasury bond especially to less-than-prime borrowers lacking rates fell appreciably when an initial budget accord access to securities markets. While much of the was hammered out and rose when the government tightening of lending standards was welcome from was forced to shut down temporarily after the pact the standpoint of safety and soundness, it exerted a failed to win congressional approval. By the end of contractionary influence on the economy and was October, long-term rates had come down again, and reflected in the slow growth in bank credit and the a budget agreement involving a major degree of broad monetary aggregates. fiscal restraint over a multi-year horizon was suc- Against this backdrop, the Federal Reserve cessfully concluded. In light of the budget agree- undertook additional actions designed to support the ment, which promised greater and more durable economy and to counter the tightening in credit fiscal restraint, and with the economy weakening, terms. In mid-November, the FOMC moved to the Federal Reserve took another step to ease lower money market rates through open market pressures on reserve conditions. operations, and in early December, the Board Late in the year, indications accumulated that eliminated the 3 percent reserve requirement on inflationary pressures, apart from those closely nonpersonal time deposits and net Eurocurrency connected to the surge in energy prices, were easing. liabilities. This action was taken in response to the As the economy softened and wage pressures also increased restraint on lending by commercial banks: 3. Growth of money and debt Percentage change Debt of domestic Period Ml M2 M3 nonfinancial sectors Fourth quarter to fourth quarter 1980 7.4 8.9 99..55 99..44 1981 5.4(2.5)' 9.3 12.3 10.1 1982 8.8 9.1 9.9 9.1 1983 10.4 12.2 9.8 11.1 1984 5.4 8.0 10.7 14.2 1985 12.0 8.7 7.6 13.1 1986 15.5 9.2 9.0 13.2 1987 6.3 4.3 5.8 9.7 1988 4.2 5.2 6.3 9.2 1989 0.6 4.7 3.6 7.7 1990 4.2 3.9 1.8 6.9 Quarterly growth rates (annual rates) 1990: 1 5.2 6.2 22..99 66..11 2 4.2 3.9 1.3 6.9 3 3.7 3.0 1.6 7.4 4 3.4 2.2 1.3 6.4 1. Figure in parentheses is adjusted for shifts to NOW accounts in 1981. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 161 Lower reserve requirements reduce funding costs to yield on the thirty-year Treasury bond had fallen depository institutions, encouraging them to expand about Vi percentage point since the middle of 1989, lending. Ultimately, the lower funding costs are and those on private long-term issues were down passed through as a combination of lower rates for slightly less. Declines in these yields may have been borrowers and higher rates offered to depositors. limited in part by the increased uncertainty and Following the reduction in reserve requirements, volatility that followed the invasion of Kuwait. further actions were taken in reserve markets to Some major stock market indexes had reached bring down short-term interest rates. These actions record highs in July, but the uncertain outlook both included additional steps toward a more accommo- at home and abroad after the invasion of Kuwait and dative supply of nonborrowed reserves through the slump in economic activity pushed stock prices open market operations and two reductions in the significantly lower in the ensuing months. Since the discount rate—of a half point in December and of a war broke out in mid-January of this year, however, like amount in January. All of these moves were stock price indexes have moved up sharply, with made in light of further declines in economic activity, some indexes reaching new record highs in midsluggish money and credit growth, and evidence of February. The foreign exchange value of the dollar ebbing inflation pressures. In total, the federal funds declined about 10 percent over the second half of rate has fallen about 2 percentage points from its 1990; the dollar turned up early this year, but fell mid-1990 level and about 3V2 percentage points again in February. from its most recent peak in mid-1989. Under the impetus of the easing of monetary policy and the softening of the economy, other short-term rates also fell significantly below mid- Behavior of Money and Credit 1990 levels by mid-February. The drop in yields on Treasury bills roughly paralleled that in the federal M2 grew unexpectedly slowly in 1990, about funds rate. Banks reduced their prime rates in two 4 percent for the year, well down in the lower half of Vi percentage point steps in early 1991, but, as a the FOMC's range. After a robust first quarter, M2 consequence of the tightening in credit supplies, growth weakened markedly over the balance of the prime rates remained higher than usual relative to year. The expansion of this aggregate was well rates on federal funds and other sources of funds. below what the historical relationships based on Rates on commercial paper and CDs also fell less income and interest rates would suggest. The than those on federal funds or Treasury bills, substantial declines in interest rates from their earlier dropping about 1% percentage points from mid- levels would ordinarily be expected to offset to some 1990 levels. This widening of yield spreads was extent the effects of the slowdown in nominal income additional evidence of investor concern about private in the second half of the year. M2 velocity was fairly credits, though these spreads generally remained stable through 1990, but historical relationships narrow relative to those seen in past economic suggest that velocity should have fallen given the downturns. However, yields on private money decline in interest rates. market instruments were under substantial upward The shortfall of money growth, relative to pressure in the weeks leading up to year-end when historical patterns, probably reflected the shifting of the prospect of publishing financial statements led financial flows associated with the contraction of the banks to attempt to hold down credit extension in thrift industry and the increased reluctance or order to bolster capital ratios and led lenders inability of commercial banks to expand their generally to intensify their focus on asset quality. balance sheets. Indeed, the slowdown of M2 growth Spreads soared at times in this period; but the emerged at about the time that RTC activity picked Federal Reserve injected large amounts of reserves, up. The drop in depository credit, which had its the year-end passed without major dislocation, and primary effect on the M3 aggregate, also may have yield spreads narrowed substantially in January. damped M2 by lessening the need of commercial Rates on longer-term securities came down banks and thrift institutions to bid for retail deposits. considerably less from their levels in mid-1990 than One indication is the apparent cutback in advertising those on short-term paper. As of mid-February, the for these deposits during the year. And, as a result of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

162 Federal Reserve Bulletin • March 1991 the diminished need for retail deposits, deposit rates posits increased slightly, but declines were registered were held down relative to returns available on in nonpersonal time deposits and net Eurodollar market instruments. In addition, some high-rate borrowing (abstracting from the effects of the reserve contracts were abrogated in the process of closing requirement decrease at year-end). failed thrift institutions, reducing the attractiveness M3 grew PA percent in 1990, somewhat less than of these deposits; depositors who were dislodged had been anticipated early in the year. Roughly from existing relationships when thrift institutions similar to the quarterly pattern of M2, M3 growth were closed may have reallocated their assets in fell off noticeably after the first quarter and ended the other directions. year somewhat above the lower bound of its target Nevertheless, even taking account of these factors range. That range itself had been lowered at midyear affecting the relative attractiveness of yields on M2 by 1V2 percentage points amid evidence that the drop assets, M2 growth remains much slower than seems in thrift assets was proceeding more rapidly than had explainable, indicating an underlying reevaluation been expected and that credit flows were being of, and shift away from, M2 assets. One factor directed away from depository institutions. Banks behind such a shift may have been concerns gener- acquired a substantial amount of deposits from thrift ated by the publicity about savings and loan failures institutions resolved by the RTC, but, unlike in and about credit quality problems at banks. To the 1989, they did not use newly acquired deposits to extent that households moved assets to money market expand their balance sheets. Significant loan losses funds, which grew rapidly in the second half of the in 1990 limited the ability of banks to generate year, M2 would not be affected; however, direct capital internally and raised the cost of external purchases of market instruments would reduce M2. capital as investors reevaluated risks. At the same For example, noncompetitive tenders at Treasury time, banks were facing the prospect of new capital auctions have been unusually strong, suggesting a standards. Banks used the deposits they acquired shift toward holding these assets directly. In addition, from thrift institutions to pay down other liabilities, households may have chosen to deplete liquid assets especially large time deposits, with the result that instead of increasing borrowing to maintain spending the shift of M2 deposits from thrift institutions to in the face of higher prices for energy products and banks contributed to sharp declines in M3 managed the sudden plunge in real income; consumer credit liabilities at banks. growth was especially slow in the fourth quarter. Much of the difficulty in the banking industry can The slowdown in M2 last year would have been be traced to problems with commercial real estate even more pronounced had it not been for the rapid loans. Before the mid-1980s, developers typically expansion of currency. At 11 percent, currency arranged permanent financing for construction and growth was more than twice its 1989 rate and was at land development projects, usually from institutional the most rapid yearly rate of the postwar period. The investors, before obtaining initial bank financing. bulk of the pickup appears attributable to increased But during the period of rapidly rising real estate demands for U.S. currency outside our borders, values in the latter 1980s, many banks no longer however. Information on shipments overseas sug- required such prearranged "takeouts," and when the gests that demands for U.S. currency were particu- real estate market cracked, those banks found larly heavy in areas experiencing economic and themselves holding a substantial volume of undercolpolitical turmoil, especially Eastern Europe, Latin lateralized loans. At about the same time, there was America, and, after the Iraqi invasion of Kuwait, the a significant reevaluation of the prospects for many Middle East. The faster growth of currency, along of the highly leveraged transactions (HLTs) that had with the effects of lower market interest rates on been undertaken in recent years; while bank losses incentives to hold transactions balances, boosted attributable to HLTs have not yet been significant, Ml growth from near zero in 1989 to 4 percent in the virtual disappearance of the market for new 1990. The monetary base grew SV2 percent over the low-rated bonds has implied that many HLT loans year, also propelled by strong currency growth. By will not be repaid as promptly as hoped. Growing contrast, the total reserves portion of the monetary uneasiness about banks' assets has contributed to base was about unchanged, reflecting little net increases in their cost of capital and, for some banks, growth in reservable liabilities; transactions de- of wholesale funding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 163 4. Senior loan officer opinion survey Percentage of banks reporting tighter standards for approving business loan applications1 Three months ending with survey date May August October January Domestic bank lending to the following: Large firms n.a. 36 50 35 Middle market 58 43 48 37 Small businesses 54 34 41 32 U.S. branches and agencies of foreign banks n.a. 612 72 89 1. Survey of sixty large domestically chartered banks and eighteen U.S. 2. Refers to tightening in the six-month period from February to August, branches and agencies of foreign banks. n.a. Not available. Banks by and large are sound and well capitalized, Calculated as a percentage of the par amount of but concerns about the strength of the industry noninvestment grade bonds outstanding, the default intensified throughout 1990. The General Account- rate of 8.7 percent was the highest in twenty years ing Office and the Congressional Budget Office and more than double the rate in 1989. While the issued reports questioning the financial health of number of downgradings also reached a record some large banks and exploring the implications of high, most of the downgradings were attributable to possible difficulties with those banks for the Bank deteriorating conditions affecting below-investment- Insurance Fund. Banks had to make large provisions grade nonfinancial corporations and, notably, finanfor loan losses as delinquency and loss rates rose on cial institutions. most major categories of loans, but especially on Not surprisingly, banks tightened standards and real estate loans. By mid-September, rates on the raised lending margins in response to the rising cost subordinated debt obligations of some major banking of funds, capital shortages, and perceptions of institutions had jumped appreciably as investors greater risk of default. In the wake of HLT disclosure reevaluated the health of these organizations. Several guidelines, banks instituted management-imposed major bank holding companies chose to redeem caps on their exposure to HLTs. Banks with low portions of their outstanding auction-rate preferred capital have cut back lending, while adequately stock rather than pay sharply higher rates. Spreads capitalized banks—though maintaining substantial between bank and Treasury obligations widened credit growth—appeared to be unwilling to step into significantly, and bank stock prices tumbled. These the breach and increase their lending pace. Survey price movements began to be reversed subsequently. responses and other information on lending terms Partly under the influence of lower interest rates, suggest especially severe constraints on credit for bank stock prices have risen substantially in 1991, real estate development and commercial mortgages, reversing much, though not all, of the declines since but also some cutbacks for business lending more the summer; spreads on subordinated and other bank generally. Some of these business borrowers have obligations have narrowed over the last few months, limited alternative sources, and so the restriction of but remain well above their levels of last summer. credit by banks probably has reduced their access to Other financial institutions also have encountered funds. difficulty. Finance companies and, to a lesser extent, As a result of the tightening of credit standards insurance companies took a beating in the securities and lending terms, but also owing importantly to the markets beginning in September, as investors ebbing of borrowing demand as the economy turned reevaluated the holdings of commercial real estate down, the growth of bank assets slowed in 1990, and HLT loans in light of expectations of a weaker especially in the fourth quarter. Total loan growth economy. Yield spreads widened significantly. fell to roughly half its 1989 rate, with slowing Furthermore, signs of mounting financial stress evident in business, real estate, and consumer were not limited to the financial sector last year. The lending. There was, however, a strong regional number of corporations reducing, omitting, or disparity in the slowdown of bank lending, a deferring dividends in the fourth quarter was the disparity that was visible in total bank loans as well highest in more than thirty years. A record dollar as in each loan category. In the Southwest, bank amount of corporate bonds defaulted in 1990. loans continued their pre-1990 decline, while, in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

164 Federal Reserve Bulletin • March 1991 New England, bank loans experienced a sharp reflecting developments on both the demand and turnaround at the beginning of 1990 from robust supply sides of the market. Although credit needs to growth to outright decline. New England banks finance corporate restructuring diminished—as were particularly aggressive in selling loans into indicated by the falloff in net equity retirements to securities markets, which contributed to the overall roughly half the pace of the previous two years—the drop, as did loan write-offs. For the rest of the mismatch between corporate capital expenditures country, loans continued to grow. and internal funds increased in the second half of the The slowdown in bank credit growth in 1990 year. A tightening of credit availability for all but occurred despite a pickup in bank holdings of investment-grade firms became increasingly evigovernment securities early in the year and the large dent. The pullback in lending to lower-rated bortransfers of deposits from failed thrift institutions. rowers was not limited to domestic banks; it included Thrift credit shrank rapidly during the year as the U.S. offices of foreign banks, which previously had RTC resolved insolvent thrift institutions, acquiring been aggressive suppliers of funds to U.S. borthe bulk of their assets in the process, and as many rowers, as well as domestic nonbank lenders such as viable thrift institutions shed assets in an effort to insurance companies. In addition, bond markets meet the new capital guidelines. The credit contrac- remained unreceptive to offerings of belowtion at depository institutions probably reduced total investment grade issues. credit to some extent, but by far less than one for State and local governments reduced new borrowone. Both the secondary market in mortgages and ing and retired sizable amounts of debt that had been the securitization of consumer loans substituted to a advance-refunded earlier, as pressures on municipal large extent for bank and thrift intermediation in credit ratings mounted in 1990. A significant number those sectors. Securitization alone is estimated to of local housing issues had their ratings downgraded have removed more than $40 billion in consumer in response to the slipping credit quality of several loans from bank balance sheets during 1990 as banks banks and insurance companies that provide credit pared their asset totals to improve capital ratios. enhancements. Also, late in the year, certain Overall, the markets for home mortgages and municipalities and some states found themselves consumer credit showed little indication that supply paying substantially higher rates in light of their own conditions were a significant factor restraining financial difficulties. growth of these types of credit. Spreads on both Growth of the debt of all domestic nonfinancial asset-backed and mortgage-backed securities did sectors was boosted last year by the federal governwiden a bit in the fourth quarter, but remained well ment, which borrowed in part to fund acquisitions of within historical ranges and appeared to have little thrift assets by the RTC. Borrowing for the RTC impact on the cost of funds to consumers. Sluggish accounted for about xh percentage point of the expansion of both consumer credit and residential 7 percent growth of total debt in 1990. The growth of mortgage borrowing in 1990 seemed to reflect debt has slowed over recent years, but, even ebbing demands associated with slumping markets abstracting from the effects of RTC activity, refor housing and consumer durable goods. mained well in excess of last year's expansion of Business borrowing slackened further in 1990, nominal income. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

165 Industrial Production and Capacity Utilization Released for publication on January 16 and has fallen more than 6 percent since July. Total industrial capacity utilization dropped 0.6 Industrial production fell 0.6 percent in December percentage point in December to 80.4 percent, its after declines of 1.8 and 0.7 percent (revised) in lowest level since April 1987. For the fourth November and October. In December, motor quarter as a whole, industrial production declined vehicle assemblies and output of related parts and at about an 8 percent annual rate from the third materials dropped sharply further, accounting for quarter. At 107.1 percent of its 1987 annual avermuch of the overall decline. In addition, produc- age, total industrial production in December was tion of construction supplies was reduced again 1.4 percent below its year-ago level. Industrial production indexes Twelve-month percent change Twelve-month percent change Products Materials J L Durable manufacturing 1985 1986 1987 1988 1989 1990 1985 1986 1987 1988 1989 1990 Capacity and industrial production Ratio scale, 1987 production =100 Ratio scale, 1987 production = 100 — Total industry _ 140 — Manufacturing — 140 - Capacity - 120 - Capacity — 120 100 - ^ 100 sr^ Production 80 y/ Production _ 80 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I 1 1 1 1 1 1 1 1 1 Percent of capacity Percent of capacity Total industry Manufacturing 90 — — 90 Utilization Utilization 80 80 70 70 J L J I I I L i i i 1 1 1 1 1 1 1 1 1 1978 1980 1982 1984 1986 1988 1990 1978 1980 1982 1984 1986 1988 1990 All series are seasonally adjusted. Latest series, December. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

166 Federal Reserve Bulletin • March 1991 In market groups, the output of consumer its level for the fourth quarter was well below that goods other than motor vehicles rose Vi percent in of the third quarter. December after a decrease of 1 percent in the In industry groups, manufacturing output fell previous month. This increase mainly reflected 0.9 percentage point in December, lowering the further gains in food processing and a partial factory utilization rate to 79.3 percent, its lowest rebound in utility output for residential use; pro- level since January 1987. Excluding motor vehiduction of both clothing and appliances was little cles and parts, manufacturing output declined Vz changed from depressed November levels. Out- percent. Outside manufacturing, the operating put of business equipment other than autos and rate at utilities rose sharply, while the rate for trucks declined nearly 4 percent at an annual rate mining advanced moderately. in the fourth quarter, owing mainly to weakness in Within manufacturing, the utilization rate for both industrial and information-processing equip- primary processing industries fell 1.4 percentment. Output of materials was curtailed again in age points while the rate for advanced pro- December, with the most pronounced drops oc- cessing industries declined 0.7 percentage curring in the production of parts and related point. The drop in primary processing indusmaterials for the motor vehicle industry. Output tries reflected significant output cutbacks at of nondurable materials, such as textiles, paper, industries that supply the auto industry, such as and chemicals, also declined in recent months. primary metals, fabricated metals products, The production index for energy materials, partic- rubber and plastics products, and textiles. Proularly electricity generation, rose last month, but duction at petroleum refiners also fell signifi- 1987 = 100 Percentage change from preceding month PPPeeerrr--ccceeennntttaaagggeee ccchhhaaannngggeee,,, IIInnnddduuussstttrrriiiaaalll ppprrroooddduuuccctttiiiooonnn 1990 1990 DDDeeeccc... 111999888999 tttooo Sept.r Oct.r Nov.r Dec." Sept.r Oct.r Nov.r Dec." DDDeeeccc... 111999999000 Total index 110.6 109.8 107.8 107.1 .1 -.7 -1.8 -.6 -1.4 Previous estimates 110.4 109.4 107.6 -.1 -.9 -1.7 Major market groups Products, total 111.4 110.8 108.9 108.5 .4 -.5 -1.7 -.4 -1.1 Consumer goods 108.7 108.4 106.1 106.1 .8 -.2 -2.2 .0 -2.0 Business equipment 126.4 125.3 122.5 121.4 .8 -.9 -2.2 -.9 1.2 Construction supplies 103.8 102.5 101.3 99.8 -1.4 -1.2 -1.2 -1.5 -7.1 Materials 109.4 108.2 106.0 104.9 -.3 -1.1 -2.0 -1.0 -1.8 Major industry groups Manufacturing 111.2 110.5 108.5 107.5 .1 -.6 -1.8 -.9 -1.2 Durable 113.8 112.4 109.6 107.9 .2 -1.2 -2.4 -1.5 -2.2 Nondurable 108.0 108.2 107.1 106.9 .0 .1 -1.0 -.2 .2 Mining 103.9 102.4 102.1 102.8 1.5 -1.4 -.3 .6 2.7 Utilities 110.3 109.0 105.1 107.1 -1.0 -1.2 -3.5 1.9 -7.8 Percent of capacity CCCaaapppaaaccciiitttyyy gggrrrooowwwttthhh,,, CCCaaapppaaaccciiitttyyy uuutttiiillliiizzzaaatttiiiooonnn 1989 1990 DDDeeeccc... 111999888999 AAvveerraaggee,, LLooww,, HHiigghh,, tttooo 11996677--8899 11998822 11998888--8899 DDDeeeccc... 111999999000 Dec. Sept.r Oct.r Nov.1" Dec.p Total industry 82.2 71.8 85.0 83.7 83.5 82.7 81.0 80.4 2.7 Manufacturing 81.5 70.0 85.1 82.8 82.7 81.9 80.2 79.3 3.2 Advanced processing 81.1 71.4 83.6 81.8 81.7 81.1 79.3 78.6 3.5 Primary processing 82.3 66.8 89.0 85.2 84.9 83.9 82.3 80.9 2.5 Mining 87.3 80.6 87.2 86.3 90.6 89.4 89.2 89.9 -1.4 Utilities 86.8 76.2 92.3 92.3 87.0 85.8 82.7 84.2 1.2 r Revised, NOTE. Indexes are seasonally adjusted. p Preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization 167 cantly for the second month in a row; its cessing resulted from the significant production operating rate has dropped 5 percentage points cuts at motor vehicle manufacturers and in the since October. nonelectrical machinery industry. Elsewhere, The decline in utilization for advanced pro- output was little changed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

168 Statement to the Congress Statement by Alan Greenspan, Chairman, Board tion supplies also has been exceptionally weak. of Governors of the Federal Reserve System, Reductions have occurred elsewhere as well. before the Committee on the Budget, U.S. Events in the Persian Gulf clearly were a key House of Representatives, January 22, 1991. factor in explaining why business activity weakened so markedly this past autumn. Specifically, the jump in prices of petroleum products cut into I am pleased to be here today. As you know, the the real disposable income of households and Federal Reserve will submit its semiannual re- thus contributed to the softness in spending for a port on monetary policy to the Congress next wide range of goods and services. Moreover, month. That report will cover in detail the Sys- many firms, whose profit margins already were tem's policy targets for 1991 as well as our being squeezed by higher energy costs, curbed expectations for growth and inflation. I am sure production to prevent inventory buildups; and you can understand that I would be reluctant to they have trimmed capital spending plans in anticipate those projections even under normal response to actual or expected reductions in the circumstances; but these circumstances are far demand for their output in the wake of the energy from normal, and clearly we shall be in a better price hikes. position to address the outlook with greater But the damage from the Persian Gulf crisis precision once some of the uncertainties associ- went beyond the direct effect of higher oil prices. ated with the Gulf conflict have been resolved. I Indeed, the enormous uncertainty about how, do think, however, that we can focus produc- and when, it would be resolved contributed to a tively today on some of the other considerations marked erosion of consumer and business confibearing on our nation's economic prospects and dence about prospects for the economy. Faced on the appropriate course for policy in the cur- with such uncertainty, producers and consumers rent environment. tend to withdraw from their normal activities All indications are that business activity de- while they wait for clearer signals of economic clined appreciably in the fourth quarter of 1990. developments and avoid making commitments When I appeared before the House Banking that might be costly to reverse. Committee in November, I noted that aggregate Of course, the crisis in the Persian Gulf was output had turned down as we moved through not the only factor restraining activity. In partic- October and into November. The contraction ular, the evidence suggests that banks—along apparently continued in December. In the labor with other lenders—have tightened the terms and market, payroll employment fell another 75,000, other conditions for supplying credit, and some after even bigger declines in the preceding two borrowers undoubtedly have encountered months, and the civilian unemployment rate rose greater difficulty obtaining financing. Such diffifurther, to 6.1 percent. Manufacturing output culties are clearest in the commercial real estate continued to fall rapidly, and the index of indus- market, but they extend to borrowing for a trial production is estimated to have dropped variety of other purposes as well. another 0.6 percent. Assessing the economic outlook is especially The December drop in industrial production daunting at the present time—and not solely brings the total decline since September to because of the enormous uncertainties surroundaround 3 percent. Close to half of that decline is ing the war in the Persian Gulf. To be sure, the attributable to cutbacks in the output of motor information on economic activity in recent weeks vehicles and parts, and production of construc- is extremely limited. But as best we can judge, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to the Congress 169 the latest data contain some hints that the effects the anticipated weakness in demand. The data in of the initial shock last August have largely hand are scanty and subject to revision, but at worked their way through the system and that this stage overhangs of inventories appear isothe downward pressures on activity may be lated and more manageable than they typically lessening. Nonetheless, we must also recognize were in cyclical downturns in the past. Thus, if the possibility that overall activity may decline final sales hold up—and I am not fully confident further before an upturn takes hold. Such an we can assume that they will—much of the outcome could result if, for example, the serious production adjustment could be behind us. Moreweakness in some parts of the country were to over, any strengthening in final demand would spread to regions where activity is stronger or, likely translate quickly into a pickup in output. alternatively, if consumer and business confi- The automakers are a key example of this dence has been so shaken by events since August behavior: They were quick to slash assemblies that further reductions in spending are in store. even though sales had dropped rather moderately Clearly, problems in real estate markets will be and even though dealer stocks did not appear a drag on the economy for a time, especially in excessive by historical standards. To be sure, view of the role they have played in exacerbating underlying demand was weaker than the reported the difficulties financial institutions face. In the sales, which included sizable purchases by the residential sector, concern about home prices big rental firms, and the inventory figures must and worries over job and income prospects seem be evaluated in light of the prospect that many of to be deterring potential homebuyers—although, these cars will reenter the market as "nearly with mortgage rates down, homes are more af- new" in just a few months. But the reductions in fordable than they have been in some time. In the motor vehicle output late last year were prompt commercial sector, the overhang of vacant space and substantial. All else equal, they were large remains heavy despite the reductions to date in enough to cut more than 2 percentage points new construction. Granted, outlays for office and from the annual rate of real GNP growth in the other commercial buildings amount to only about fourth quarter. The good news is that most, if not 1 percent of GNP, and thus the direct effects on all, of the reduction in motor vehicle output may overall economic activity of even a sharp con- well be behind us, judging by current production traction in new construction are limited. Never- schedules for the first quarter. theless, because existing commercial properties On the inflation side, apart from the uncertainconstitute such a large share of the stock of ties associated with energy prices, the outlook assets that have to be financed, a deep drop in the seems to have improved over the past few value of existing buildings implies sizable losses months. A good many signs point to an easing of on the balance sheets of banks and other financial wage pressures, and some further diminution in institutions, with repercussions that extend be- wage inflation seems likely in the context of the yond the construction industry. slack that has emerged in labor markets in recent At the same time, other factors support opti- months. In addition, the core rate of inflation in mism about the outlook for activity. First, the consumer prices over the past several months depreciation of the dollar over the past year has been running below that recorded earlier in should buoy the growth of exports, even in the the year. face of some slowing of economic expansion Against this background, the Federal Reserve abroad. It also should help to restrain imports, has extended a series of steps taken over the past and thus to shift some domestic demand to U.S. year and a half to ease the stance of monetary producers. Of course, this is not to imply that the policy. Reflecting these actions, the federal funds lower dollar is entirely a blessing: It adds to rate has come down about 3 percentage points, inflation pressures, and it may contribute to on balance, since the spring of 1989, from almost instability in financial markets. 10 percent to around 63/4 percent. Other short- One feature of developments to date that term rates have fallen appreciably as well, and bodes especially well for activity is the apparent long-term Treasury bond rates are near the low rapidity with which producers have responded to end of their range for the last year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

170 Federal Reserve Bulletin • March 1991 The conduct of monetary policy over this The amount of slack in the economy is not great period has involved a careful balancing of the by historical standards, and an overly aggressive need to respond to signs that economic activity monetary easing could end up being counterprowas slowing perceptibly, on the one hand, and ductive. Our aim should be to encourage a susthe need to contain inflationary pressures on the tainable recovery, rather than one that simply other. The initial easing actions, taken between fosters imbalances that will lead to the next June and December 1989, were largely a re- downturn. sponse to developments that began to suggest Fiscal policymakers also will have to grapple that a slackening in inflation might be in prospect with difficult decisions in the months ahead. I as indications of slower economic expansion anticipate that the economic forecasts of the continued to accumulate and money growth re- Congressional Budget Office (CBO) and the Admained sluggish relative to the annual ranges. ministration will show declines in real GNP in Policy was little changed, on net, in the first part both the fourth quarter of 1990 and the first of 1990, as economic activity appeared to be well quarter of 1991. In that case, the Senate will be maintained—albeit at a subdued pace—but the required—and the House will have the opinflation news was disappointing. tion—to consider a joint resolution suspending By midyear, there were hints of moderation in the enforcement provisions of the budget reconinflation after the earlier spurt, and incoming ciliation act. information pointed to sluggishness in economic Voting to suspend the enforcement provisions activity. In addition, restriction on credit sup- in the absence of compelling evidence of a deep plies at banks, signaled in part by lagging money or prolonged recession would be a mistake. Togrowth, suggested that credit conditions were gether with the Administration, you worked long tighter than intended, and thus policy was eased and hard last year to assemble an acceptable a notch over the summer. package of spending and tax changes and budget Further actions have been taken in light of process reforms. By enacting the budget agreeyour fiscal actions last fall, the weakening econ- ment, you gave financial markets some assurance omy, continuing problems of credit availability, of stability and of future easing of federal credit and slow growth in the money aggregates. They demands. Undercutting this commitment now include a cut of Vi percentage point in the dis- might have adverse effects on long-term interest count rate in mid-December to 6V2 percent, a rates and thus might well be self-defeating. reduction in certain required reserve ratios, and I recognize that you are likely to face considother operations designed to make reserves more erable pressure to take actions that would, in available. effect, expand the budget deficit. Concerns about We expect that our actions to date will provide the appropriateness of a policy of fiscal restraint support to economic activity in the quarters in a period of weak economic performance are ahead. Whether further adjustments to policy understandable. However, they must be balwill be needed is not known; decisions on that anced against the benefits that will flow from score will depend on developing trends in finan- adhering to a budget strategy that is geared to the cial markets and the economy. In that regard, we longer-run needs of the economy. Those needs shall want to make certain that money and credit can best be met by ensuring that the underlying remain on suitable growth tracks. We are partic- or "structural" deficit remains on a downward ularly concerned by the sluggishness of the track, even as the actual deficit is being swollen money stock in recent months, and our most temporarily by the effects of the weak economy. recent action was triggered in large part by In addition, even in the absence of policy further evidence of weak monetary growth. In actions, the budget will have a substantial stabiaddition, we are monitoring the credit situation lizing effect on the economy—something clearly carefully, and we shall continue to review the anticipated when the new budget procedures economic data for signs that the recession might were designed. Among other things, the focus on be deepening. At the same time, we must take the reduction in the deficit brought about by care to avoid a policy that is overly stimulative. legislative action, rather than the level of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to the Congress 171 deficit per se, eliminates the need for policy (NIPA). Although the NIPA budget is similar to adjustments to offset the effects of changes in the unified budget in many respects, it treats the economic conditions and thus allows the auto- lending and financial activities of the federal secmatic stabilizers to function as intended. tor in a way that is more useful for the analysis of Moreover, the historical evidence on the im- the balance of saving and investment and the plementation of discretionary countercyclical fis- effects of fiscal policy on economic activity. Specal policy is not encouraging. Often in the past, cifically, it reflects the interest paid or received in we have adopted programs that were designed to the course of financial transactions, but it exstimulate the economy but that did not come on cludes the transactions themselves. stream until well after the recovery was under The rationale is that the national income and way. If the predominant economic forecast for product accounts measure the nation's current 1991 is roughly correct, taking stimulative action income and production and therefore exclude now may bring on a repetition of that pattern. In transactions that are essentially an exchange of that case, little would have been accomplished in existing assets and liabilities. Such transactions terms of alleviating our current difficulties, while affect the allocation and distribution of income prospects for increases in capital accumulation and output and thus can have a significant ecoand improvements in productivity would have nomic impact, but they are analyzed more approbeen set back. priately within a financial-market framework. Furthermore, Operation Desert Storm is not Outlays for deposit insurance are essentially a subject to the cap on defense spending, and liquidation of financial liabilities that were indefense outlays for fiscal year 1991 undoubtedly curred earlier. They do not represent current will be considerably higher than was anticipated income to their recipients; depositors do not last fall. Other nations are expected to share in become wealthier at the moment that their bank the cost of the war, and their contributions will or savings and loan institution is taken over by help to cushion the effect on the budget deficit. the government. Thus; they are excluded from But regardless of who is paying for it, Desert the NIPA. Storm spending on newly produced domestic The credit reform provisions in the Budget items will boost U.S. GNP. Reconciliation Act improve the unified budget The problems of the deposit insurance system accounting for new loans and loan guarantees also must be addressed; they, too, have implica- and narrow the conceptual gap between the two tions for the budget and complicate the interpre- budget measures. The legislation also directed tation of fiscal policy. Under the new budget the Office of Management and Budget and the procedures, net outlays for deposit insurance will CBO to study the budgetary treatment of deposit continue to be reflected in the official on-budget insurance, but, for the time being, it remains on figures, as well as in the broader measures of the a cash basis. Outlays for deposit insurance unified budget. The inclusion of deposit insurance caused a sizable divergence between the NIPA in the budget totals reduces the usefulness of the and unified deficits in fiscal year 1990; and they unified budget as an indicator of the effect of the undoubtedly will differ substantially in 1991 and federal budget on the economy. Because deposit 1992 as well. Accordingly, it will be especially insurance alters the incentives for the managers of important to monitor and to understand the financial institutions, it undoubtedly has had sig- NIPA budget measure, which is designed specifnificant effects on the real economy; but the actual ically to provide information on how fiscal policy payouts have little further effect on credit mar- is affecting the economy. kets, interest rates, or economic activity. The uncertainties in the current situation are Thus, attention should focus on budget figures great, and the risks of making policy mistakes are that exclude deposit insurance; these include the high. We must, of course, remain alert to events in alternative measure of the deficit that the CBO the Persian Gulf and to their repercussions for the highlighted in its Interim Assessment of the 1990 U.S. economy. But we must also make sure that our Budget Agreement, and the deficit as recorded in policies remain consistent with the achievement of the national income and product accounts our economic goals for the longer run. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

172 Announcements MARTHA R. SEGER: RESIGNATION AS A been my peak earning years—I have been in public MEMBER OF THE BOARD OF GOVERNORS service either in Michigan or in Washington earning subpar wages. Therefore, I must concentrate on increasing my income and replenishing my depleted On January 23, 1991, Martha R. Seger ansavings by returning to the private sector. nounced her resignation as a member of the My primary goal is to get involved in business by Board of Governors of the Federal Reserve Sys- becoming a professional corporate director of a numtem, effective at a date to be determined later. ber of major companies. Since I like students and the academic atmosphere, I will also do some lecturing at Governor Seger has been a member of the Board several colleges. Finally, I hope to give some speeches since July 2, 1984. and do occasional consulting jobs. In her letter of resignation to President Bush, I am proud to have been appointed by President Governor Seger said she felt it was the appropri- Reagan and am grateful to have had the opportunity to ate time to leave the Board to pursue other fill this important job. I have taken the responsibilities seriously and worked hard to get economic policy interests and to tend to personal and family makers to think about the impact of their decisions on responsibilities. manufacturing and the great Midwest. During her term as a Board member, Governor It was exciting to be involved in the policies that Seger has also chaired the Neighborhood Rein- produced the longest peacetime expansion in Amerivestment Corporation and filled the Federal Re- can history, and I am disappointed that our economy is now in recession. serve seat on the National Women's Business Since I have a number of projects and assignments Council. to complete, I will set the exact time of my departure Her letter of resignation follows: later. Good luck with your many responsibilities—both in the Middle East and domestically. January 22, 1991 Cordially, President George Bush The White House Martha R. Seger Washington, D.C. Dear President Bush: CHANGE IN THE DISCOUNT RATE I have been trying to get an appointment to see you for The Federal Reserve Board announced on Febthe last few months and for very understandable reasons have not been able to get on your schedule. ruary 1, 1991, a reduction in the discount rate Besides wanting to discuss some concerns I had over from 6Vi percent to 6 percent, effective immedithe health of our economy and the financial system, I ately. wanted to inform you of my family situation and why Action was taken in light of further declines in it would probably cause me to leave Washington in the economic activity, continued sluggish growth not too distant future. After lengthy discussions with family members and trends in money and credit, and evidence of good friends, I have decided that this is the appropri- abating inflationary pressures, including weakate time to make that decision. Thus, after serving ness in commodity prices. nearly seven years as a Governor of the Federal In taking the action, the Board voted on re- Reserve and getting half way through my very long quests submitted by the boards of directors of the term, I would like to resign to pursue other interests and tend to personal and family responsibilities. Federal Reserve Banks of Boston, New York, For nine of the past ten years—which should have Philadelphia, Richmond, Chicago, Kansas City, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 173 and Dallas. The Board subsequently approved Savings and Loan Association, Hutchinson, Minnesimilar requests by the boards of directors of the sota. Federal Reserve Banks of Cleveland, St. Louis, Joyce Harris, President and Chief Executive Officer Minneapolis, and San Francisco. The actions for of Telco Community Credit Union, Madison, Wisconthe Reserve Banks of Cleveland, Minneapolis, sin. and San Francisco were effective February 1. The St. Louis change was effective February 4. Julia Hiler, Executive Vice President of Sunshine Also on February 4, the Federal Reserve Board Mortgage Corporation, Marietta, Georgia. approved action by the board of directors of the Henry Jaramillo, President of Ranchers State Bank Federal Reserve Bank of Atlanta to reduce the of Belen, Belen, New Mexico. discount rate of that bank from 6V2 to 6 percent, effective February 4. Otis Pitts, Jr., President of Tacolcy Economic Development Corporation, Miami, Florida. Sandra Willett, Second Vice President—Consumer Affairs for John Hancock Financial Services, Boston, NEW MEMBERS NAMED Massachusetts. TO CONSUMER ADVISORY COUNCIL The other members of the Council are the follow- The Federal Reserve Board named on January ing: 11, 1991, nine new members to its Consumer Advisory Council to replace those members George H. Braasch, Corporate General Counsel of whose terms have expired and designated a new Spiegel, Inc., Oakbrook, Illinois. chairman and vice chairman of the council for 1991. Cliff E. Cook, Vice President and Compliance Of- The Consumer Advisory Council was estab- ficer of Puget Sound National Bank, Tacoma, Washlished by the Congress in 1976, at the sugges- ington. tion of the Board, to advise the Board on the R.B. Dean, Jr., Administrator of Community and exercise of its duties under the Consumer Consumer Affairs for South Carolina National Bank, Credit Protection Act and on other consumer- Columbia, South Carolina. related matters. The thirty-member council, with staggered three-year terms of office, meets William C. Dunkelberg, Dean of the School of three times a year. Business and Management, Temple University, Philadelphia, Pennsylvania. James W. Head, Executive Director of the National Economic Development and Law Cen- James Fletcher, President and Director of South ter in Berkeley, California, was designated chair- Shore Bank of Chicago, Chicago, Illinois. man, and Linda K. Page, President and Chief George C. Galster, Professor of Economics at the Operating Officer of Star Bank in Columbus, College of Wooster, Wooster, Ohio. Ohio, was designated vice chairman. The nine new members are the following: E. Thomas Garman, Professor of Consumer Studies at the College of Human Resources, Virginia Polytech- Veronica E. Barela, Executive Director of nic Institute and State University, Blacksburg, Vir- NEWSED Community Development Corporation, ginia. Denver, Colorado. Deborah B. Goldberg, Reinvestment Specialist on Dr. Toye L. Brown, Director of Freedom House the Neighborhood Revitalization Project at the Center Inc., Boston, Massachusetts. for Community Change, Washington, D.C. Denny D. Dumler, Senior Vice President—Con- Michael M. Greenfield, Professor of Law at Washsumer Banking for Colorado National Bank of Denver, ington University, St. Louis, Missouri. Denver, Colorado. Barbara Kaufman, Co-Director of KCBS Call for Donald A. Glas, President of First State Federal Action, San Francisco, California. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

174 Federal Reserve Bulletin • March 1991 Kathleen E. Keest, Staff Attorney for the National Net additions to income amounted to $2,220 Consumer Law Center, Inc., Boston, Massachusetts. billion, primarily resulting from the revaluation of assets denominated in foreign currencies. Stat- Colleen D. McCarthy, Executive Director of the utory dividends to member banks were $141 Kansas City Neighborhood Alliance, Kansas City, Missouri. million. Under the policy established by the Board of Michelle S. Meier, Counsel for Government Affairs Governors at the end of 1964, all net income after at Consumers Union, Washington, D.C. the statutory dividend to member banks and the Bernard F. Parker, Jr., Executive Director of Com- amount necessary to equate surplus to paid-in munity Resource Projects, Detroit, Michigan. capital is transferred to the U.S. Treasury as interest on Federal Reserve notes. Vincent P. Quayle, Director of St. Ambrose Housing Aid Center, Baltimore, Maryland. Clifford N. Rosenthal, Executive Director of the PROPOSED ACTIONS National Federation of Community Development Credit Unions, New York, New York. The Federal Reserve Board issued for public Alan M. Silberstein, Executive Vice President of comment on January 23, 1991, modifications of Chemical Bank, New York, New York. the procedures used for measuring Fedwire daylight overdrafts as part of its Payment System Nancy Harvey Steorts, President of Nancy Harvey Risk Reduction Program. Comments must be Steorts & Associates, Dallas, Texas. submitted to the Board by May 31, 1991. David B. Ward, of Counsel, Gebhardt & Kiefer, The Federal Reserve Board, along with other Clinton, New Jersey. federal financial institutions regulatory agencies, has issued for comment an interim common rule that amends each agency's respective appraisal INCOME AND EXPENSES regulation by adding an appendix consisting of OF THE FEDERAL RESERVE BANKS applicable provisions of the Uniform Standards of Professional Appraisal Practice (USPAP). Preliminary figures released January 10, 1991, Comment is requested by March 1, 1991. indicate that operating income of the Federal The Federal Reserve Board issued for public Reserve Banks amounted to $23,475 billion durcomment on January 30, 1991, proposed amending 1990. Net income before payment of diviments to Regulation CC (Availability of Funds dends, additions to surplus, and payments to the and Collection of Checks) designed to improve Treasury totaled $23,954 billion. the check collection system. The amendments About $23,633 billion was paid to the U.S. provide for same-day settlement for checks pre- Treasury during 1990. sented by private sector banks. Comments are Federal Reserve System income is derived due by June 28, 1991. primarily from interest earned on U.S. government securities that the Federal Reserve has acquired through open market operations. Income from the provision of financial services REVISED LIST OF MARGIN ABLE amounted to $729 million. OTC STOCKS NOW AVAILABLE Operating expenses of the twelve Reserve Banks and branches totaled $1,211 billion. Also, The Federal Reserve Board published on Janu- $134 million for earnings credits was granted to ary 25, 1991, a revised List of Marginable OTC depository institutions under the Monetary Con- Stocks for over-the-counter (OTC) stocks that trol Act of 1980. Assessments to the Board of are subject to its margin regulations and also the Governors for Board expenditures totaled $104 List of Foreign Margin Stocks for foreign equity million, and the cost of currency amounted to securities that are subject to Regulation T (Credit $193 million. by Brokers and Dealers). The lists are effective Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 175 February 11, 1991, and supersede the previous marginable. The next publication of the Board's lists that were effective November 13, 1990. list is scheduled for April 1991. The List of Foreign Margin Stocks indicates Besides NMS-designated securities, the Board those foreign equity securities that are eligible for will continue to monitor the market activity of margin treatment at broker-dealers. This eligibil- other OTC stocks to determine which stocks ity was made possible by an amendment to meet the requirements for inclusion and contin- Regulation T, effective April 30, 1990. The num- ued inclusion on the List of Marginable OTC ber of foreign equity securities remains at 276, Stocks. since no changes are being made to the List of Foreign Margin Stocks at this time. The changes that have been made to the re- CHANGES IN BOARD STAFF vised List of Marginable OTC Stocks, which now includes 2,726 OTC stocks, are as follows: Allen E. Beutel, Executive Director for Informa- • Thirty-three stocks have been included for tion Resources Management, retired from Board the first time, twenty-four under National Market service, effective February 2, 1991. System (NMS) designation. The Board of Governors also announced the • Forty-eight stocks previously on the list have promotion of Stephen R. Malphrus from Deputy been removed for substantially failing to meet the Executive Director to Director for Information Rerequirements for continued listing. sources Management, effective February 3, 1991. • Thirty-three stocks have been removed for reasons such as listing on a national securities exchange or involvement in an acquisition. SYSTEM MEMBERSHIP: ADMISSION OF The List of Marginable OTC Stocks is pub- STATE BANKS lished by the Board for the information of lenders and the general public. It includes all OTC secu- The following state banks were admitted to memrities designated by the Board pursuant to its bership in the Federal Reserve System during the established criteria as well as all OTC stocks period June 1, 1990, through November 30, 1990: designated as NMS securities for which transaction reports are required to be made pursuant to Colorado an effective transaction reporting plan. Addi- Boulder Vectra Bank Boulder tional OTC securities may be designated as NMS Lake wood Vectra Bank Lake wood securities in the interim between the Board's Pennsylvania quarterly publications and will be immediately Philadelphia Pitcairn Private Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Ill Legal Developments FINAL RULE—AMENDMENT TO REGULATION A 3. Section 201.52 is revised to read as follows: The Board of Governors is amending 12 C.F.R. Part Section 201.52—Extended credit for depository 201, its Regulation A (Extensions of Credit by Federal institutions Reserve Banks), to reflect its recent approval of a reduction in discount rates at each Federal Reserve (a) Seasonal credit. The rates for seasonal credit Bank effective December 19, 1990. The discount rate is extended to depository institutions under section the interest rate that is charged depository institutions 201.3(b)(1) of Regulation A are: when they borrow from their district Federal Reserve Banks. The Board acted on requests submitted by the Boards of Directors of the twelve Federal Reserve Federal Reserve Bank Rate Effective Banks. Boston 6.5 December 19, 1990 The Board approved the requests against the back- New York 6.5 December 19, 1990 ground of weakness in the economy, constraints on Philadelphia 6.5 December 19, 1990 Cleveland 6.5 December 19, 1990 credit, and slow growth in the monetary aggregates. Richmond 6.5 December 19, 1990 Atlanta 6.5 December 19, 1990 The reduction, in part, realigns the discount rate with Chicago 6.5 December 19, 1990 market interest rates. St. Louis 6.5 December 19, 1990 Minneapolis 6.5 December 19, 1990 Effective December 19, 1990, 12 C.F.R. Part 201 is Kansas City 6.5 December 19, 1990 amended as follows: Dallas 6.5 December 19, 1990 San Francisco 6.5 December 19, 1990 1. The authority citation for 12 C.F.R. Part 201 continues to read as follows: (b) Other extended credit. The rates for other extended credit provided to depository institutions under sus- Authority: Sections 10(a), 10(b), 13,13a, 14(d) and 19 of tained liquidity pressures or where there are excepthe Federal Reserve Act (12 U.S.C. 347a, 347b, 343 tional circumstances or practices involving a particular et seq., 347c, 348 et seq. 357, 374, 374a and 461); and institution under section 201.3(b)(2) of Regulation A section 7(b) of the International Banking Act of 1978 are: (12 U.S.C. 347d). 2. Section 201.51 is revised to read as follows: Federal Reserve Bank Effective Section 201.51—Short-term adjustment credit for depository institutions Boston 19, 1990 New York 19, 1990 Philadelphia.. 19, 1990 The rates for short-term adjustment credit provided to Cleveland 19, 1990 Richmond 19, 1990 depository institutions under section 201.3(a) of Reg- Atlanta 19, 1990 ulation A are: Chicago 19, 1990 St. Louis 19, 1990 Minneapolis.. 19, 1990 Kansas City.. 19, 1990 Dallas 19, 1990 Federal Reserve Bank Rate Effective San Francisco 19, 1990 Boston 6.5 December 19, 1990 New York 6.5 December 19, 1990 These rates apply for the first 30 days of borrowing. Philadelphia 6.5 December 19, 1990 For credit outstanding for more than 30 days, a flexible Cleveland 6.5 December 19, 1990 Richmond 6.5 December 19, 1990 rate will be charged which takes into account rates on Atlanta 6.5 December 19, 1990 market sources of funds, but in no case will the rate Chicago 6.5 December 19, 1990 St. Louis 6.5 December 19, 1990 charged be less than the basic discount rate plus Minneapolis 6.5 December 19, 1990 Kansas City 6.5 December 19, 1990 one-half percentage point. Where extended credit pro- Dallas 6.5 December 19, 1990 vided to a particular depository institution is antici- San Francisco 6.5 December 19, 1990 pated to be outstanding for an unusually prolonged Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

178 Federal Reserve Bulletin • March 1991 period and in relatively large amounts, the 30-day time Decom Systems, Inc.: No par common period may be shortened. Duratek Corporation: $.01 par common Empire Financial Corp.: $.01 par common Environmental Power Corporation: $.01 par common FINAL RULE—AMENDMENTS TO REGULATIONS G, T, U AND X Financial News Network, Inc.: No par common First Charter Corporation: $5.00 par common The Board of Governors is amending 12 C.F.R. Parts First Continental Real Estate Investment Trust: $1.00 207, 220, 221 and 224, its Regulations G, T, U and X par shares of beneficial interest (Securities Credit Transactions; List of Marginable OTC Stocks; and List of Foreign Margin Stocks). The Genex Corporation: $.05 par common, Series B, $.60 List of Marginable OTC Stocks (OTC List) is compar convertible preferred prised of stocks traded over-the-counter (OTC) in the United States that have been determined by the Board HEI, Inc.: $.06 par common of Governors of the Federal Reserve System to be Home Federal Savings Bank (South Carolina): $1.00 subject to the margin requirements under certain Fedpar common eral Reserve regulations. The List of Foreign Margin Stocks (Foreign List) represents all foreign equity Ingres Corporation: $.001 par common securities that have met the Board's eligibility criteria Intech Incorporated: No par common under Regulation T. The OTC List and the Foreign International Consumer Brands, Inc.: $.01 par com- List are published four times a year by the Board. This mon document sets forth additions to or deletions from the Ironstone Group, Inc.: $.01 par common previous OTC List. There are no additions to or deletions from the previous Foreign List. Both Lists JRM Holdings, Inc.: $.01 par common were published on November 1, 1990 and effective on November 13, 1990. Kwik Products International Corporation: No par Effective February 11, 1991, accordingly, pursuant common to the authority of sections 7 and 23 of the Securities Exchange Act of 1934, as amended (15 U.S.C. §§ 78g and 78w), and in accordance with 12 C.F.R. 207.2(k) Landmark/Community Bancorp, Inc.: $.01 par comand 207.6(c) (Regulation G), 12 C.F.R. 220.2(u) and mon 220.17(e) (Regulation T), and 12 C.F.R. 221.2(j) and Lexington Precision Corporation: $.25 par common 221.7(c) (Regulation U), there is set forth below a listing of deletions from and additions to the OTC List. Meret, Inc.: No par common Merrimack Bancorp, Inc.: $.10 par common Deletions from the List of Marginable OTC Stocks Nevada Goldfields Corporation: No par common New Hampshire Savings Bank Corp.: $1.00 par com- Stocks Removed for Failing Continued Listing mon Requirements One Bancorp, The: $1.00 par common 1st American Bancorp Inc.: $.01 par common Overmyer Corporation: No par common Abraham Lincoln Federal Savings Bank (Pennsylvania): $1.00 par common P.C. Quote, Inc.: $.001 par common Action Savings Bank, S.L.A.: $1.00 par common Pioneer American Holding Corporation: $10.00 par Arizona Instrument Corporation: No par common common Prab Robots, Inc.: $.10 par common Cellular Information Systems, Inc.: Class A, $.01 par common Ronson Corporation: $1.00 par common Ceramics Process Systems Corp.: $.01 par common Charter Federal Savings Bank (Virginia): $.01 par Samna Corporation: $.01 par common common Software Services of America, Inc.: $.01 par common Corporate Data Sciences, Inc.: No par common Southmark Corporation: $.01 par common Critical Industries, Inc.: $.001 par common Sunresorts Ltd., N.V.: $.01 par common Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 179 Traditional Industries, Inc.: $.01 par common Sellersville Savings and Loan Association (Pennsylva- Transnational Industries, Inc.: $.01 par common nia): $1.00 par common Washington Savings Bank, F.S.B. (Maryland): $1.00 Telecredit, Inc.: $.01 par common par common Tolland Bank (Connecticut): $1.00 par common Westerbeke Corporation: $.01 par common Tony Lama Company, Inc.: $1.00 par common Westwood One, Inc.: Warrants (expire 09-04-97) U.S. Intec, Inc.: $.02 par common Xscribe Corporation: No par common Urcarco, Inc.: $.01 par common Stocks Removed for Listing on a National Valley Federal Savings Bank (Indiana): $.01 par com- Securities Exchange or Being Involved in an mon Acquisition VISX, Incorporated: No par common American Reliance Group, Inc.: $.01 par common Additions to the List of Marginable OTC Barden Corporation, The: $1.00 par common Stocks Cambrex Corporation: $.10 par common A.L. Williams Corporation: 7.25% convertible subor- Cheshire Financial Corporation: $1.00 par common dinated debentures Conner Peripherals, Inc.: No par common ATC Environmental Inc.: $.01 par common Continental Gold Corporation: No par common Bank of San Pedro: No par common Doctors Rehabilitation Corporation of America: $.001 par common Cardinal Distribution, Inc.: 7LA% convertible subordinated debentures Environmental Tectonics Corporation: $.10 par com- Care Group, Inc., The: $.001 par common, Warrants mon (expire 04-24-91) Exploration Company of Louisiana Inc., The: $.01 par Cathay Bancorp, Inc.: No par common common Chiron Corporation: 7V4% convertible subordinated debentures First Federal of Western Pennsylvania: $1.00 par Clearly Canadian Beverage Corporation: No par comcommon mon Frontier Insurance Group, Inc.: $.01 par common Coca-Cola Enterprises, Inc.: Warrants (expire 07-10-91) Home Savings Bank, The (New York): $1.00 par Crop Genetics International: $.95 convertible excommon changeable preferred Laidlaw Inc.: Class A, no par common, Class B, no First Bancorp Indiana, Inc.: No par common par common First Seismic Corporation: $.01 par common Mayflower Financial Corporation: $.01 par common Great Lakes Bancorp, A Federal Savings Bank: Micron Technology, Inc.: $.10 par common Warrants (expire 07-01-95) Mid Maine Savings Bank, F.S.B.: $.01 par common Health Risk Management, Inc.: $.01 par common National Lampoon, Inc.: $.10 par common Hector Communications Corporation: $.01 par com- Nike, Inc.: Class B, no par common mon North Hills Electronics, Inc.: $.01 par common NWNL Companies, Inc., The: $1.25 par common In Focus Systems, Inc.: No par common Israel Land Development Company Limited: Ameri- Oshap Technologies Ltd.: Warrants (expire 11-25-90) can Depository Receipts Phoenix American Incorporated: No par common Kaiser Steel Resources, Inc.: $.03 par common Planters Corporation, The: $5.00 par common POP Radio Corporation: $.01 par common Lufkin Industries, Inc.: $1.00 par common Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

180 Federal Reserve Bulletin • March 1991 Millfeld Trading Co., Inc.: Class A, Warrants (expire Hayward Bancshares, Inc., Hayward, Wisconsin 07-22-92), Warrants (expire 01-22-94) ("Hayward"), has applied for the Board's approval, pursuant to section 3(a)(1) of the Bank Holding N.S. Bancorp, Inc.: $.01 par common Company Act ("BHC Act") (12 U.S.C. § 1841 Neozyme Corporation: Units (expire 12-31-94) et seq.) to become a bank holding company by acquiring 100 percent of the voting shares of Peoples Palmer Tube Mills Limited: American Depository Bancshares of Hayward, Inc., Hayward, Wisconsin Receipts ("Peoples"), and thereby indirectly acquiring Peoples's sole subsidiary, The Peoples National Bank of Rada Electronics Industries Limited: $.001 par com- Hayward, Hayward, Wisconsin ("Bank"). mon Notice of the application, affording interested per- Regional Federal Bancorp, Inc. (Indiana): No par sons an opportunity to submit comments, has been common published (55 Federal Register 43,411 (1990)). The time for filing comments has expired, and the Board SSMC, Inc.: Series B, 15% cumulative preferred has considered the application and all comments received in light of the factors set forth in section 3(c) Tandy Brands Accessories, Inc.: $1.00 par common of the BHC Act. Hayward is a non-operating company formed for Universal Holding Corporation: Warrants (expire the purpose of acquiring Peoples and Bank. Bank is 06-29-93) the 80th largest commercial banking organization in Wisconsin, controlling deposits of $66.9 million, rep- Ventura Motion Picture Group: $.001 par common resenting less than one percent of the total deposits Videocart, Inc.: $.01 par common in commercial banking organizations in the state.1 Principals of Hayward and Bank are not associated Wisconsin Pharmacal Company, Inc.: $.01 par com- with any other banking organizations in the market. mon Based on the facts of record, consummation of this proposal would not result in any significantly adverse effect on competition or the concentration of banking FINAL RULE—CORRECTION TO REGULATION H resources in Wisconsin or in any relevant market. Accordingly, the Board concludes that competitive The Board of Governors amended 12 C.F.R. Part 208, considerations are consistent with approval of this its Regulation H (Payment of Dividends by State Bank application. Members of the Federal Reserve System), and made The financial and managerial resources and future technical changes to Part 250 by redesignating sections prospects of Hayward and Bank are consistent with 250.101 through 250.103 as section 208.125 through approval.2 In addition, considerations relating to the 208.127 in Part 208. Part 250 was further amended by convenience and needs of the communities to be removing section 250.104. An effective date for the served also are consistent with approval. changes to Part 250 was omitted from this document. Based on the foregoing and other facts of record, The changes to Part 250 are effective as of Decem- including the commitments made by Hayward, the ber 20, 1990, the same effective date as for section 208.19(b) of the final rule. 1. Banking data are as of September 30, 1990. 2. The Board has received a letter protesting the application from ORDERS ISSUED UNDER BANK HOLDING a group of minority shareholders who, under the transaction as proposed, will receive less consideration for their shares than the COMPANY ACT majority shareholders. Protestants argue that under Wisconsin law, minority shareholders are entitled to the same per share price paid to Orders Issued Under Section 3 of the Bank majority shareholders, which would increase substantially Hayward's acquisition costs. The protestants question whether Hay- Holding Company Act ward has the managerial resources to achieve the growth and earnings assumptions used in Hayward's debt servicing projections. Hay ward Bancshares, Inc. The Board believes, after a review of all the facts of record, that Hayward has demonstrated that it would be able to service the debt Hay ward, Wisconsin incurred under the terms of the transaction as proposed. Any subsequent change in this proposal, such as an increase in the proposed acquisition cost of Peoples and its subsidiary bank, will be Order Approving Formation of a Bank Holding subject to prior Board review under all the factors set forth in the Company BHC Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 181 Board has determined that the application should credit card operations into a newly-chartered bank, be, and hereby is, approved. The proposal shall not be New MBNA, and parent holding company, MBNA consummated before the thirtieth calendar day follow- Corp. The corporate reorganizations described in the ing the effective date of this Order, or later than three applications will occur immediately prior to the closmonths after the effective date of this Order, unless ing of the IPO. such period is extended for good cause by the Board or Section 3(d) of the BHC Act (12 U.S.C. § 1842(d)), the Federal Reserve Bank of Minneapolis, acting pur- the Douglas Amendment, prohibits the Board from suant to delegated authority. approving an application by a bank holding company By order of the Board of Governors, effective to acquire control of any bank located outside of the January 24, 1991. holding company's home state, unless such acquisition is "specifically authorized by statute laws of the state in which [the] bank is located, by language to that Voting for this action: Governors Seger, Angell, Kelley, effect and not merely by implication."1 MNC's and La Ware, and Mullins. Absent and not voting: Chairman Greenspan. Maybaco's home state is Maryland, and MBNA Corp.'s and New MBNA's home state is Delaware. JENNIFER J. JOHNSON The Delaware interstate banking statute expressly Associate Secretary of the Board authorizes bank holding companies located in a number of states, including Maryland, to acquire existing MNC Financial, Inc. Delaware banks, if there is substantial reciprocity Baltimore, Maryland between Delaware law and the law of the home state of the acquiring out-of-state bank holding company.2 The Maybaco Company, a Limited Partnership Maryland law expressly authorizes the acquisition of Baltimore, Maryland a bank in Maryland by a Delaware bank holding company.3 In light of the foregoing, the Board believes MBNA America Bank, N.A. that approval of the proposal is not barred by the Douglas Newark, Delaware Amendment. MNC is the largest commercial banking organiza- MBNA Corp. tion in Maryland, controlling one subsidiary bank in Newark, Delaware Maryland with total deposits of $11.3 billion, representing 26.7 percent of the total deposits in commer- Order Approving Acquisition of a Bank and cial banking organizations in the state.4 MNC also Formation of Bank Holding Companies operates subsidiary banks in Washington, D.C., as well as its credit card bank, Old MBNA, in Dela- MNC Financial Inc. ("MNC"), and the Maybaco ware. Maybaco is a nonoperating investment part- Company ("Maybaco"), a Limited Partnership, both nership that became a bank holding company by of Baltimore, Maryland, and both bank holding com- virtue of its acquisition of shares of common stock of panies within the meaning of the Bank Holding MNC at the time of its merger with Equitable Ban- Company Act ("BHC Act"), have applied for the corporation.5 This proposal represents a corporate Board's approval under section 3(a)(3) of the BHC reorganization that will permit the consolidation of Act (12 U.S.C. § 1842(a)(3)), to acquire indirectly MNC's existing credit card operation into New MBNA, a de novo national bank, and MBNA Corp., 100 percent of the voting shares of MBNA America, its parent holding company. N.A., Newark, Delaware ("New MBNA"), a de novo bank. In connection with this application, The Board has considered the competitive aspects MBNA America Bank, N.A., ("Old MBNA") and of this reorganization, as well as the financial and MBNA Corp., both of Newark, Delaware, have managerial resources and future prospects of MNC applied for the Board's approval under section 3(a)(1) of the BHC Act (12 U.S.C. § 1842(a)(1)) to become bank holding companies by acquiring 100 1. A bank holding company's home state is that state in which the percent of the voting shares of New MBNA. total deposits of the bank holding company's subsidiary banks were These applications are required as part of MNC's largest on July 1, 1966, or on the date the bank holding company became a bank holding company, whichever date is later. proposal to sell its credit card operations through an 2. Del. Code Ann. tit. 5, § 842(4) (1990 Supp.). underwritten public sale (Initial Public Offering or 3. Md. Code Ann. art. 5, § 1003 (1990 Supp.). 4. State banking data are as of September 30, 1990. "IPO"). To effect the sale, MNC has requested the 5. Maybaco's acquisition of MNC shares was approved by the Board to approve a consolidation of its existing Board's Order, dated December 19, 1989. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

182 Federal Reserve Bulletin • March 1991 and its subsidiaries. In the context of these applica- Dear Mr. Portnoy: tions, the Board believes that these factors are consistent with approval. The Board has also deter- As requested in your letter of July 13, 1990, the mined that considerations relating to the conve- Board of Governors grants consent for Bankers Trust nience and needs of the community to be served are New York Corporation ("BTNY"), New York, New consistent with approval. York, to retain the shares of its indirect subsidiary, Based on the foregoing and other facts of record, B.T. Futures New Zealand Limited ("BT Futures"), including certain commitments and representations Auckland, New Zealand, after BT Futures acts as a made during the processing of these applications, the futures commission merchant ("FCM") on the New Board has determined that the applications should Zealand Futures and Options Exchange Limited be, and hereby are, approved. In accordance with (the "Exchange"), Auckland, New Zealand. BT sections 3(b) and 11(b) of the BHC Act (12 U.S.C. Futures would act as a FCM with respect to a U.S. §§ 1842(b)(1) and 1849(b)(1)),6 the acquisition of New dollar futures contract, a five-year New Zealand MBNA and MBNA Corp., shall not be consummated government stock futures contract, a 90-day bank before the fifth calendar day following the effective accepted bills futures contract, a New Zealand dollar date of this Order, or later than three months after futures contract, a five-year government stock opthe effective date of this Order, and New MBNA tions contract, a New Zealand dollar options conshall be opened for business within six months after tract, and futures contracts of the kinds listed in the effective date of this Order, unless such periods section 225.25(b)(18) of Regulation Y. The Board are extended for good cause by the Board or by the understood that BT Futures also proposes to pro- Federal Reserve Bank of Richmond, acting pursuant vide investment advice in connection with the above to delegated authority. activities. In taking this action, the Board relied on By order of the Board of Governors, effective BTNY's commitment that BT Futures's FCM and January 22, 1991. investment advisory activities on the Exchange will be conducted in accordance with the conditions Voting for this action: Governors Seger, Angell, Kelley, imposed in sections 225.25(b)(18) and (19) of Reguand Mullins. Voting against this action: Governor La Ware. lation Y. Absent and not voting: Chairman Greenspan. The Board has also delegated authority to the Federal Reserve Bank of New York to approve JENNIFER J. JOHNSON additional financial contracts involving products that Associate Secretary of the Board the Board has reviewed and approved previously but that are not products specifically covered by Orders Issued Under Section 4 of the Bank Regulation Y. Proposals involving products that Holding Company Act have not been reviewed previously by the Board would continue to require the Board's specific con- Bankers Trust New York Corporation sent. New York, New York The Reserve Bank should be notified promptly of any prospective substantial changes in the activi- Order Approving Application to Engage in Certain ties of the Exchange that would materially increase Futures Commission Merchant Activities in New the potential liability of the Bankers Trust organiza- Zealand tion in conducting activities on the Exchange. The Board expects that BTNY will comply with any conditions the Board may impose after reviewing January 17, 1991 such changes. Mr. Robert A. Portnoy Vice President Very truly yours, Bankers Trust New York Corporation 130 Liberty Street New York, New York 10006 Jennifer J. Johnson Associate Secretary of the Board 6. Pursuant to section 225.14(h) of the Board's Regulation Y (12 C.F.R. 225.14(h)), and section 262.3(a) of the Board's Rules of cc: Vice President Rutledge, Federal Reserve Bank of Procedure (12 C.F.R. 262.3(a)), the Board has also dispensed with the public notice and hearing requirements for these applications. New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 183 Creditanstalt-B ank verein meaning of section 4(c)(8) of the BHC Act.4 In those Vienna, Austria Orders, the Board also found that acting as agent in the private placement of securities is consistent with sec- Order Approving Application to Act as Agent in the tion 20 of the Glass-Steagall Act, and that revenue Private Placement of all Types of Securities derived from that activity is not subject to the 10 percent revenue limitation on underwriting and dealing Creditanstalt-Bankverein, Vienna, Austria ("Credi- in ineligible securities.5 In order to address the potentanstalt"), a bank holding company within the mean- tial for conflicts of interests, unsound banking pracing of the Bank Holding Company Act ("BHC Act"), tices, or other adverse effects, Creditanstalt has prohas applied for the Board's approval under section posed that Advisers conduct this activity consistent 4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8)), for its with the limitations, methods, and procedures estabwholly owned subsidiary, Creditanstalt International lished by the Board in approving this activity, as these Advisers, Inc., New York, New York ("Advisers"), limitations have been modified to reflect Creditanto engage de novo in the private placement of all types stalt's status as a foreign bank.6 of securities as agent.1 In order to approve this application, the Board is Notice of the application, affording interested per- required to determine that the performance of the sons an opportunity to submit comments, has been proposed activity by Creditanstalt "can reasonably duly published (55 Federal Register 42,768 (1990)). be expected to produce benefits to the public . . . that The time for filing comments has expired, and the outweigh possible adverse effects, such as undue Board has considered the application and all com- concentration of resources, decreased or unfair comments received in light of the public interest factors set petition, conflicts of interests, or unsound banking forth in section 4(c)(8) of the BHC Act.2 practices." 12 U.S.C. § 1843(c)(8). Creditanstalt, with consolidated assets equivalent to In evaluating these factors under section 4 of the approximately $49.6 billion, is the largest banking BHC Act, the Board considers the financial condition organization in Austria.3 In the United States, Credi- and resources of Creditanstalt and its subsidiaries and tanstalt operates a branch in New York, a subsidiary the effect of the proposal on these resources.7 In this providing investment advisory services in California, case, the Board notes that Creditanstalt meets the 1990 and a subsidiary providing advisory and portfolio interim risk-based guidelines, and its core capital exmanagement activities, pursuant to the Board's Regu- ceeds the 1992 minimum standard adopted by the Basle lation K, from offices in New York. Committee. In view of these and other facts of record, The Board has previously determined that, subject the Board has determined that financial factors are to a number of prudential limitations that address the consistent with approval of the application. The manapotential for conflicts of interests, unsound banking gerial resources of Creditanstalt and its subsidiaries practices, and other adverse effects, the proposed also are consistent with approval of the application. private placement activity is so closely related to Consummation of the proposal would provide banking as to be a proper incident thereto within the added convenience to Creditanstalt's customers. In addition, the Board expects that the de novo entry of Creditanstalt into the market for this service in the United States would increase the level of competition among providers of this service. Under the 1. Advisers has received authorization from the Board to engage in framework established in this and prior decisions, a variety of nonbanking activities, including providing investment advisory and securities brokerage services on a combined basis ("full consummation of this proposal is not likely to result service brokerage"), engaging in brokerage services separately, buy- in any significant adverse effects, such as undue ing and selling all types of securities on the order of investors as a concentration of resources, decreased or unfair com- "riskless principal," and providing corporate financial advisory services. See Creditanstalt-Bankverein, 76 Federal Reserve Bulletin 761 (1990). 2. The Board has received written comments opposing this application from the Investment Company Institute ("ICI"), a trade 4. J.P. Morgan & Company Incorporated, 76 Federal Reserve association of the mutual fund industry. The ICI has objected to Bulletin 26 (1990) ("J.P. Morgan"); Bankers Trust New York Corpo- Creditanstalt's proposal to the extent that it could be construed to ration, 75 Federal Reserve Bulletin 829 (1989) ("Bankers Trust"). seek approval for Advisers to privately place securities of investment 5. Id. companies sponsored or advised by Creditanstalt or its bank or 6. See Bankers Trust New York Corporation, 73 Federal Reserve nonbank affiliates. Creditanstalt has committed that Advisers will not Bulletin 138 (1987); J.P. Morgan; Bankers Trust; The Royal Bank of privately place securities of investment companies sponsored or Scotland Group pic, 76 Federal Reserve Bulletin 866 (1990); Canadian advised by Creditanstalt or its affiliates. Imperial Bank of Commerce/The Royal Bank of Canada/Barclays Creditanstalt has further committed that Advisers will not place PLC, 76 Federal Reserve Bulletin 158 (1990). such securities as part of Advisers's previously approved riskless 7. 12 C.F.R. 225.24; The Fuji Bank Limited, 75 Federal Reserve principal activities. See supra note 1. Bulletin 94 (1989); Bayerische Vereinsbank AG, 12> Federal Reserve 3. Data are as of December 31, 1989. Bulletin 155, 156 (1987). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

184 Federal Reserve Bulletin • March 1991 petition, conflicts of interests, or unsound banking (1) To underwrite and deal in, to a limited extent, practices. Accordingly, the Board has determined municipal revenue bonds, 1-4 family mortgagethat the performance of the proposed activity by related securities, commercial paper and consumer- Creditanstalt can reasonably be expected to produce receivable-related securities ("ineligible securipublic benefits that would outweigh adverse effects ties"); under the proper incident to banking standard of (2) To act as agent in the private placement of all section 4(c)(8) of the BHC Act. types of securities, including providing related ad- Based on the above, the Board has determined to, visory services; and hereby does, approve the application subject to all (3) To buy and sell all types of securities on the of the terms and conditions set forth in this order, and order of investors as a "riskless principal"; in the above-noted Board Orders that relate to these (4) To provide investment advisory services to activities. The Board's determination is also subject to retail and institutional customers pursuant to secall of the conditions set forth in the Board's Regula- tions 225.25(b)(4)(i)-(v) of Regulation Y (12 C.F.R. tion Y, including those in sections 225.4(d) and 225.25(b)(4)(i)-(v)); 225.23(b), and to the Board's authority to require (5) To provide financial and transaction advice to modification or termination of the activities of a bank financial and nonfinancial institutions, including: holding company or any of its subsidiaries as the Board (a) advice and assistance in connection with the finds necessary to assure compliance with, and to structuring, financing, and negotiating of domestic prevent evasion of, the provisions of the BHC Act and and international merger, acquisition, divestiture, the Board's regulations and orders issued thereunder. joint venture, leveraged buyout, recapitalization, This transaction shall not be consummated later capital structuring, financing and other corporate than three months after the effective date of this transactions, including private and public financ- Order, unless such period is extended for good cause ings; by the Board or by the Federal Reserve Bank of New (b) feasibility studies, principally in the context of York, pursuant to delegated authority. determining the financial attractiveness and feasi- By order of the Board of Governors, effective bility of particular corporate transactions and January 22, 1991. financing transactions; (c) valuation services in connection with domestic Voting for this action: Governors Seger, Angell, Kelley, and international merger, acquisition, divestiture, La Ware, and Mullins. Absent and not voting: Chairman joint venture, leveraged buyout, recapitalization, Greenspan. financing, and other corporate transactions; (d) fairness opinions in connection with domestic JENNIFER J. JOHNSON and international merger, acquisition, divestiture, Associate Secretary of the Board joint venture, leveraged buyout, recapitalization, financing, and other corporate transactions; The Dai-Ichi Kangyo Bank, Limited (e) advice regarding the structuring, and arranging Tokyo,Japan of swaps, caps and similar transactions relating to factors such as interest rates, currency exchange rates, prices, and economic and financial indices; Order Approving Application To Underwrite and (f) ancillary services or functions incidental to the Deal in Certain Securities to a Limited Extent, to foregoing advisory activities; and Act as Agent in the Private Placement of Securities, (6) To provide investment advisory and brokerage to Act as "Riskless Principal" in Buying and Selling services on a combined basis ("full-service broker- Securities, to Engage in Full-Service Brokerage, and age") to institutional customers.1 to Provide Investment and Financial Advisory Services The Dai-Ichi Kangyo Bank, Limited, Tokyo, Japan 1. Dai-Ichi defines an institutional customer as: (A) a bank (acting in an individual or fiduciary capacity), a savings ("Dai-Ichi"), a bank holding company within the and loan association, an insurance company, a registered investmeaning of the Bank Holding Company Act ("BHC ment company under the Investment Company Act of 1940, or a Act"), has applied under section 4(c)(8) of the BHC corporation, partnership, trust, proprietorship, organization or institutional or governmental entity that regularly invests in the type Act (12 U.S.C. § 1843(c)(8)) and section 225.23(a) of of securities as to which investment advice is given, that regularly the Board's Regulation Y (12 C.F.R. 225.23(a)) for its engages in transactions in securities, or that has a net worth wholly owned subsidiary, DKB Securities Corpora- exceeding $1 million; (B) an employee benefit plan with assets exceeding $1 million, or tion, New York, New York ("Company"): whose investment decisions are made by a bank, insurance com- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 185 Notice of the application, affording interested per- to the prudential framework of limitations established sons an opportunity to submit comments, has been in those cases to address the potential for conflicts of duly published (55 Federal Register 48,289 (1990)). interests, unsound banking practices or other adverse The time for filing comments has expired, and the effects, the proposed underwriting and dealing activi- Board has considered the application and all com- ties are so closely related to banking as to be a proper ments received in light of the public interest factors set incident thereto within the meaning of section 4(c)(8) forth in section 4(c)(8) of the BHC Act. of the BHC Act. The Board subsequently modified Dai-Ichi is the largest banking organization in the that prudential framework in the case of a foreign world, with $435 billion in total consolidated assets.2 banking organization to take into account principles of Dai-Ichi owns The Dai-Ichi Kangyo Bank of Califor- national treatment and the Board's policy not to exnia, Los Angeles, California, with total assets of $503 tend U.S. bank supervisory standards extraterritorialmillion. In addition, Dai-Ichi operates branches in ly.4 Dai-Ichi has committed that Company will con- New York, Los Angeles, and Chicago, and agencies in duct its underwriting and dealing activities with Atlanta and San Francisco. Dai-Ichi also engages in respect to bank-ineligible securities subject to the 10 various nonbanking activities through a number of percent revenue test and the prudential limitations subsidiaries, including Company. established by the Board in its Sanwa Order.5 Company is currently authorized to engage in securities brokerage, dealing and underwriting activities Private Placement and "Riskless Principal" pursuant to sections 225.25(b)(15) and (16) of Regula- Activities tion Y (12 C.F.R. 225.25(b)(15) and (16)). Company is, and will continue to be, a broker-dealer registered with The Board previously has determined by order that, the Securities and Exchange Commission and subject subject to certain prudential limitations that address to the record-keeping, reporting, fiduciary standards, the potential for conflicts of interests, unsound bankand other requirements of the Securities Exchange Act ing practices or other adverse effects, the proposed of 1934 and the National Association of Securities private placement and "riskless principal" activities Dealers. are so closely related to banking as to be a proper incident thereto within the meaning of section 4(c)(8) Underwriting and Dealing In Ineligible Securities of the BHC Act. The Board has also previously determined that acting as agent in the private place- The proposed ineligible securities underwriting and ment of securities, and purchasing and selling securidealing activity has been determined by the Board to ties on the order of investors as a "riskless principal" be consistent with section 20 of the Glass-Steagall Act do not constitute underwriting and dealing in securities provided the underwriting subsidiary derives no more for purposes of section 20 of the Glass-Steagall Act, than 10 percent of its total gross revenue from under- and that revenue derived from these activities is not subject to the 10 percent revenue limitation on ineligiwriting and dealing in the approved securities over any two-year period.3 The Board also found that, subject ble securities underwriting and dealing.6 Dai-Ichi has committed that Company will conduct its private placement and "riskless principal" activities using the same methods and procedures, and subject to the pany or investment adviser registered under the Investment Advis- same prudential limitations established by the Board in ers Act of 1940; (C) a natural person whose individual net worth (or joint net worth with his or her spouse) at the time of receipt of the investment advice or brokerage services exceeds $1 million; (D) a broker-dealer or option trader registered under the Securities Order Approving Modifications to Section 20 Orders, 75 Federal Exchange Act; or other securities, investment or banking profes- Reserve Bulletin 751 (1989)("Modification Order"). sional; or 4. The Sanwa Bank, Limited, 76 Federal Reserve Bulletin 568 (E) an entity of which all of the equity owners are Institutional (1990)("Samva"); The Toronto-Dominion Bank, 76 Federal Reserve Customers. Bulletin 573 (1990)(''Toronto-Dominion"). 2. Total consolidated asset data are as of March 31, 1990, and asset 5. The Board notes that lending to affiliates by U.S. branches and data for The Dai-Ichi Kangyo Bank of California are as of June 30, agencies of foreign banks is not restricted by section 23A of the 1990. Federal Reserve Act. In view of the limited nature of these activities, 3. Citicorp, J.P. Morgan & Co. Incorporated and Bankers Trust the Board does not believe that the record at this time would require New York Corporation, 73 Federal Reserve Bulletin 473 (1987)("C/'f- extending the restrictions of section 23A to Dai-Ichi's U.S. branches icorplMorgan!Bankers Trust"), ajf d sub. nom., Securities Industry and agencies. The Board, however, reserves the right to require that Association v. Board of Governors of the Federal Reserve System, 839 Dai-Ichi's U.S. branches and agencies adhere to the restrictions of F.2d 47 (2d Cir. 1988), cert, denied, 108 S.Ct. 2830 (1988)("57A v. section 23A should circumstances change to make such a requirement Board"); Chemical New York Corporation, The Chase Manhattan appropriate. Corporation, Bankers Trust New York Corporation, Citicorp, Manu- 6. J.P. Morgan and Company, Inc., 76 Federal Reserve Bulletin 26 facturers Hanover Corporation and Security Pacific Corporation, 73 (1990)("•/./>. Morgan"); Bankers Trust New York Corporation, 75 Federal Reserve Bulletin 731 (\9KT)(" Chemical"), as modified by Federal Reserve Bulletin 829 (m9)("Bankers Trust"). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

186 Federal Reserve Bulletin • March 1991 the Bankers Trust and J.P. Morgan orders, as modi- closely related to banking under section 4(c)(8) of the fied to reflect Dai-Ichi's status as a foreign bank, BHC Act.9 The Board has also determined by order consistent with the framework adopted in the Sanwa that the proposed financial advisory activities are and Toronto-Dominion Orders. closely related to banking for purposes of section Dai-Ichi has proposed to have its U.S. affiliates, 4(c)(8) of the BHC Act.10 Company has proposed to branches or agencies extend credit to an issuer whose conduct the investment and financial Advisory actividebt securities have been placed by Company where ties in accordance with all of the requirements estabthe proceeds would be used to pay the principal lished by the Board in its regulation and orders govamount of the securities at maturity. Dai-Ichi has erning these activities.11 committed that these extensions of credit will conform to the limitations set forth in the Board's decision in Full-Service Brokerage Activities J.P. Morgan, including the requirements that a period of at least three years elapse from the time of the The Board has previously determined by order that placement of the securities to the decision to extend full-service brokerage is a permissible nonbanking credit, that Dai-Ichi maintain adequate documentation activity for bank holding companies under section of these transactions and decisions, and that the ex- 4(c)(8) of the BHC Act. See PNC Financial Corporatensions of credit meet prudent and objective stan- tion, 75 Federal Reserve Bulletin 396 (1989); Bankers dards, as well as the standards set out in section 23B of Trust New York Corporation, 74 Federal Reserve the Federal Reserve Act.7 The Federal Reserve Bank Bulletin 695 (1988). Dai-Ichi proposes to engage in of San Francisco will closely review loan documenta- full-service brokerage in accordance with all of the tion of U.S. affiliates to ensure that an independent conditions set forth in these orders. and thorough credit evaluation has been undertaken In addition, Company will provide discretionary with respect to the participation of the bank in these investment management for institutional customers credit extensions to issuers of securities privately only, under the same terms and conditions as previplaced by an agent affiliated with the bank. ously approved by the Board.12 Such discretionary Dai-Ichi also has proposed to have Company place investment management services will not be provided securities with its parent holding company or with a for retail customers. nonbank subsidiary of the parent company consistent with the Board's ruling in J.P. Morgan. In this regard, Financial Factors, Managerial Resources and Other Dai-Ichi will establish both individual and aggregate Considerations limits on the investment by affiliates of Company in any particular issue of securities that is placed by In order to approve this application, the Board is Company and will establish appropriate internal poli- required to determine that the performance of the cies, procedures, and limitations regarding the amount proposed activities of Dai-Ichi "can reasonably be of securities of any particular issue placed by Com- expected to produce benefits to the public . . . that pany that may be purchased by Dai-Ichi and each of its outweigh possible adverse effects, such as undue nonbanking subsidiaries, individually and in the aggre- concentration of resources, decreased or unfair comgate.8 These policies and procedures, as well as the purchases themselves, will be reviewed by the Federal Reserve Bank of San Francisco. 9. See Sections 225.25(b)(4)(i)-(v) of Regulation Y, 12 C.F.R. 225.25(b)(4)(i)-(v). 10. See, e.g., First Regional Bancorp, Inc., 76 Federal Reserve Financial and Investment Advisory Services Bulletin 859 (1990); Creditanstalt-Bankverein, 76 Federal Reserve Bulletin 761 (1990); Citicorp, 76 Federal Reserve Bulletin 666 (1990); The Fuji Bank, Limited, 75 Federal Reserve Bulletin 577 (1989). The Board has previously determined by regulation 11. With respect to the proposed financial advisory services, that the proposed investment advisory activities are Dai-Ichi has committed that: (A) Company's financial advisory services will not encompass the performance of routine tasks or operations for a customer on a daily or continuous basis; 7. 12 U.S.C. § 371c-l. (B) Disclosure will be made to each potential customer of each 8. The limit established shall not exceed 50 percent of the issue company that Company is an affiliate of Dai-Ichi; being placed. Additionally, in the development of these policies and (C) Advice rendered by Company on an explicit fee basis will be procedures, Dai-Ichi will incorporate, with respect to placements of without regard to correspondent balances maintained by a customer securities, the limitations established by the Board in condition 12 of at any depository institution subsidiary of the holding company; and its Order regarding aggregate exposure of Dai-Ichi's U.S. subsidiaries (D) Except as authorized by the respective client, no confidential and offices on a consolidated basis to any single customer whose information received from the client will be made available to the securities are underwritten or dealt in by Company. J.P. Morgan & holding company or any of its subsidiaries. See, e.g., Creditanstalt- Company, Incorporated, The Chase Manhattan Corporation, Bank- Bankverein, 76 Federal Reserve Bulletin 761 (1990). ers Trust New York Corporation, Citicorp and Security Pacific 12. See J.P. Morgan and Company, Inc., 73 Federal Reserve Corporation, 75 Federal Reserve Bulletin 192 (1989). Bulletin 810 (1987). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 187 petition, conflicts of interests, or unsound banking evasion of, the provisions of the BHC Act and the practices." 12 U.S.C. § 1843(c)(8). Board's regulations and orders issued thereunder. In every case involving a nonbanking acquisition This transaction shall not be consummated later by a bank holding company under section 4 of the than three months after the effective date of this BHC Act, the Board considers the financial condition Order, unless such period is extended for good cause and resources of the applicant and its subsidiaries by the Board or by the Federal Reserve Bank of San and the effect of the transaction on these resources.13 Francisco, pursuant to delegated authority. In this case, Dai-Ichi is in compliance with the By order of the Board of Governors, effective minimum risk-based capital standards currently in January 28, 1991. effect as implemented by the Japanese banking authorities in conformance with the standards as Voting for this action: Chairman Greenspan and Governors adopted by the Basle Committee. Accordingly, the Seger, Angell, Kelley, and Mullins. Absent and not voting: Governor La Ware. Board concludes that financial considerations are consistent with approval of this application. The JENNIFER J. JOHNSON managerial resources of Dai-Ichi are also consistent Associate Secretary of the Board with approval. Consummation of the proposal would provide added The Sanwa Bank, Limited convenience to Dai-Ichi's customers. In addition, the Osaka, Japan Board expects that the de novo entry of Dai-Ichi into the market for these services would increase the level Order Approving Application to Engage in Certain of competition among providers of these services. Leasing Activities Under the framework established in this and prior decisions, consummation of this proposal is not likely The Sanwa Bank, Limited, Osaka, Japan ("Sanwa"), to result in any significantly adverse effects, such as a bank holding company within the meaning of the undue concentration of resources, decreased or unfair Bank Holding Company Act ("BHC Act"), has apcompetition, conflicts of interests, or unsound banking plied for the Board's approval under section 4(c)(8) of practices. Accordingly, the Board has determined that the BHC Act (12 U.S.C. § 1843(c)(8)) and section the performance of the proposed activities by Dai-Ichi 225.23(a) of the Board's Regulation Y (12 C.F.R. can reasonably be expected to produce benefits to the 225.23(a)) to engage, through its wholly owned subsidpublic.14 iary, Sanwa Business Credit Corporation, Chicago, Based on the above, the Board has determined to, Illinois ("SBCC"), in the leasing of personal property, and hereby does, approve the application subject to and acting as agent, broker, or adviser in leasing such the commitments made by Dai-Ichi, as well as all of property, including lease transactions in which SBCC the terms and conditions set forth in this Order and in may rely for its compensation on an estimated residual the above-noted Board Orders that relate to these value of the leased property at the expiration of the activities. The Board's determination is also subject initial lease term of up to 100 percent of the acquisition to all of the conditions set forth in Regulation Y, cost of the property ("higher residual value leasing"). including those in sections 225.4(d) and 225.23(b), Notice of the application, affording interested perand to the Board's authority to require modification sons an opportunity to submit comments, has been or termination of the activities of a bank holding duly published (55 Federal Register 49,574 (1990)). company or any of its subsidiaries as the Board finds The time for filing comments has expired, and the necessary to assure compliance with, and to prevent Board has considered the application and all comments received in light of the factors set forth in section 4(c)(8) of the BHC Act. Sanwa, with total consolidated assets equivalent to 13. 12 C.F.R. 225.24; The Fuji Bank, Limited, 75 Federal Reserve Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal Reserve approximately $387 billion, is the fifth largest banking Bulletin 155, 156 (1987). organization in the world.1 Sanwa owns Sanwa Bank 14. Company may also purchase and sell for its own account futures, forward, options, and options on futures contracts on ineligi- California, San Francisco, California, with total assets ble securities for hedging purposes, as incidents to the proposed of $7.4 billion as of September 30, 1990. In addition, bank-ineligible securities underwriting and dealing activities. Any Sanwa operates branches in New York, New York; activity conducted as a necessary incident to the ineligible securities underwriting and dealing activity must be treated as part of the Chicago, Illinois; Boston, Massachusetts; San Franineligible securities activity unless Company has received specific approval under section 4(c)(8) of the BHC Act to conduct the activity independently. Until such approval is obtained, any revenues from the incidental activity must be counted as ineligible revenue subject to the 1. Asset data are as of March 31, 1990. Ranking is as of July 26, 10 percent gross revenue limit set forth in the Modification Order. 1990. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

188 Federal Reserve Bulletin • March 1991 cisco, California; and Los Angeles, California; agen- competition, or gains in efficiency, that outweigh poscies in Atlanta, Georgia; and Dallas, Texas; and rep- sible adverse effects, such as undue concentration of resentative offices in Houston, Texas; and Lexington, resources, decreased or unfair competition, conflicts Kentucky. Sanwa engages in various nonbanking ac- of interests, or unsound banking practices." tivities in the United States pursuant to section 4(c)(8) 12 U.S.C. § 1843(c)(8). of the BHC Act. Sanwa maintains that approval of the proposed SBCC currently engages in various personal prop- activity would enable SBCC to better respond to the erty leasing and commercial financing activities pursu- needs of its leasing customers and competitive condiant to sections 225.25(b)(5) and (b)(1) of the Board's tions in the leasing industry by allowing SBCC to offer Regulation Y. SBCC had total assets of $2.2 billion as a broader range of leasing terms. of June 30, 1990. The Board has considered the potential for adverse In order to approve an application under section effects that might be associated with reliance by 4(c)(8) of the BHC Act, the Board must determine that SBCC on high residual values in leasing transactions. the proposed activity is "so closely related In this case, Sanwa proposes that SBCC engage in to banking or managing or controlling banks as these leasing activities subject to limitations previto be a proper incident thereto ...." 12U.S.C. ously relied on by the Board which are designed to § 1843(c)(8). The Board has previously determined by minimize the possibility of such effects. Sanwa has order that the activities of engaging in higher residual also committed to limit the total amount of SBCC's value leasing and acting as agent, broker, or adviser investment in leases with estimated residual values in with respect to such lease transactions are closely excess of 25 percent of the acquisition cost of the related to banking and permissible for bank holding leased property to no more than 10 percent of Sancompanies subject to certain limitations.2 SBCC pro- wa' s total consolidated assets, and to limit the aggreposes to conduct these activities using the same meth- gate amount of SBCC's investment in leases with ods and procedures and subject to the same limitations estimated residual values in excess of 70 percent of established by the Board in its previous orders regard- the acquisition cost of the leased property to the ing these activities. In this regard, all leases will be lesser of (i) 0.5 percent of Sanwa's total consolidated non-operating and, with the exception of the residual assets, or (ii) 10 percent of Sanwa's total consolivalue calculation, will otherwise conform to all of the dated shareholders' equity. In addition, Sanwa has requirements provided in the Board's regulation re- committed to maintain SBCC's capital commensugarding leasing transactions generally.3 In particular, rate with industry standards for comparable leasing SBCC would engage in the proposed activities only for activities. The Federal Reserve Bank of San Franleases in which the property to be leased is acquired cisco will monitor the policies and procedures of specifically for the leasing transaction under consider- SBCC to assure that these policies and procedures ation or was acquired specifically for an earlier leasing are consistent with the leasing authority granted transaction. Moreover, Sanwa has committed that the under this Order. proposed lease transactions engaged in by SBCC In every case involving a nonbanking acquisition by would have a minimum initial lease term of one year, a bank holding company under section 4 of the BHC that the maximum lease term would be no more than Act, the Board considers the financial condition and 40 years, and that SBCC would sell or re-lease the resources of the applicant and its subsidiaries and the property within two years of the expiration of the effect of the transaction on these resources.4 In this initial lease. case, Sanwa is in compliance with the minimum risk- In acting on an application under section 4(c)(8) of based capital standards currently in effect as implethe BHC Act, the Board must also consider whether mented by the Japanese banking authorities in conan applicant's performance of the proposed activities formance with the standards as adopted by the Basle "can reasonably be expected to produce benefits to Committee. Accordingly, the Board concludes that the public, such as greater convenience, increased financial considerations are consistent with approval of this application. The managerial resources of Sanwa are also consistent with approval. 2. Security Pacific Corporation, 76 Federal Reserve Bulletin 462 Consummation of the proposal would provide added (1990). See, also, Dai-Ichi Kangyo Bank, Limited, 76 Federal Reserve convenience to Sanwa's leasing customers. In addi- Bulletin 960 (1990). On May 25, 1990, the Board issued for comment a proposal to make these leasing activities permissible for bank holding companies generally under Regulation Y. 55 Federal Register 22,348 and 23,446. Sanwa has committed to conform SBCC's leasing 4. 12 C.F.R. 225.24; The Fuji Bank, Limited, 75 Federal Reserve activities to any final rule adopted by the Board. Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal Reserve 3. See 12 C.F.R. 225.25(b)(5). Bulletin 155, 156 (1987). 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Legal Developments 189 tion, the Board expects that the de novo entry of advantage in the United States over domestic bank- Sanwa into the market for this activity would increase ing organizations. In my view, such foreign organithe level of competition among providers of this ser- zations should be judged against the same financial vice. Accordingly, the Board has determined that the and managerial standards, including the Board's capperformance of the proposed activity by Sanwa can ital adequacy guidelines, as are applied to domestic reasonably be expected to produce benefits to the banking organizations. Specifically, the capital adepublic. quacy of foreign banking organizations should be For these reasons, and in reliance on the commit- scrutinized without giving them the benefit of adjustments offered in this case, the Board believes that ments not available for United States banking orgaconsummation of this proposal is not likely to result nizations. in any significant adverse effects, such as undue In addition, I am concerned that while some progconcentration of resources, decreased or unfair com- ress is being made in opening Japanese markets to petition, conflicts of interests, or unsound banking U.S. banking organizations and other financial institupractices. Based on the foregoing and other facts of tions, U.S. banking organizations, in my opinion, are record, the Board concludes that the balance of the still far from being afforded the full opportunity to public interest factors that it is required to consider compete in Japan. under section 4(c)(8) is favorable in this case. Accordingly, subject to the conditions in this Order and January 7, 1991 the commitments made by Sanwa in this case, the Board has determined that the proposed application STICHTING PRIORITEIT ABN AMRO should be, and hereby is, approved. This determina- HOLDING tion is subject to all of the conditions set forth in the Amsterdam, The Netherlands Board's Regulation Y, including sections 225.4(d) and 225.23(b) (12 C.F.R. 225.4(d) and 225.23(b)), and Stichting Administratiekantoor ABN AMRO to the Board's authority to require such modification HOLDING or termination of the activities of a bank holding Amsterdam, The Netherlands company or any of its subsidiaries as the Board finds necessary to assure compliance with, or to prevent evasion of, the provisions and purposes of the BHC ABN AMRO Holding N.V. Act and the Board's regulations and orders issued Amsterdam, The Netherlands thereunder. Amsterdam-Rotterdam Bank N.V. This transaction shall not be consummated later Amsterdam, The Netherlands than three months after the effective date of this Order, unless such period is extended for good cause by the Board or by the Federal Reserve Bank of San Order Denying Proposal to Engage in Clearing Francisco, pursuant to delegated authority. Securities Options and Other Financial Instruments By order of the Board of Governors, effective for the Accounts of Professional Floor Traders January 7, 1991. STICHTING PRIORITEIT ABN AMRO HOLD- Voting for this action: Chairman Greenspan and Governors ING, Stichting Administratiekantoor ABN AMRO Angell and Mullins. Voting against this action: Governor HOLDING, and ABN AMRO Holding N.V., all of Seger. Absent and not voting: Governors Kelley and La- Amsterdam, The Netherlands, foreign banking orga- Ware. nizations subject to the Bank Holding Company Act ("BHC Act"), and Amsterdam-Rotterdam Bank WILLIAM W. WILES N.V., Amsterdam, The Netherlands ("Amro"), a Secretary of the Board bank holding company with respect to a U.S. bank (collectively, "Applicants"), have applied for the Dissenting Statement of Governor Seger Board's approval under section 4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8)) to engage de novo I dissent from the Board's action in this case. I through their subsidiary, International Clearing Serbelieve that foreign banking organizations whose vices (U.S.) Inc., Chicago, Illinois ("Company"), in capital, based on U.S. accounting principles, is be- the execution and clearance of: low the Board's minimum capital guidelines for U.S. (1) exchange-traded securities options and other banking organizations have an unfair competitive securities, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

190 Federal Reserve Bulletin • March 1991 (2) futures and options on futures that relate to Under Board precedent,6 the nonbanking subsidiary financial instruments. engaged in such services has generally serviced a broad range of retail and/or institutional customers. Company Company's proposed customer base would consist proposes to clear trades for a specialized customer base primarily of market makers and other professional comprised primarily of professional floor traders who floor traders dealing for their own accounts.1 execute trades for their own accounts. Company proposes to register as a broker-dealer In addition, nonbank subsidiaries of bank holding with the Securities and Exchange Commission and as companies operating pursuant to prior Board approva futures commission merchant with the Commodity als have generally performed both execution and clear- Futures Trading Commission. Company will become a ance services.7 By performing both services, the subclearing member of the CBOE, the Chicago Board of sidiary is able to control risk because it executes the Trade, the New York Stock Exchange and the Amer- majority of the transactions that it clears. The nonbank ican Stock Exchange. subsidiary may either refuse to execute an order that it Notice of the application, affording interested per- deems inappropriate or require more funds or collatsons an opportunity to submit comments, has been eral from the customer in advance of and as a condiduly published (55 Federal Register 39,210 (1990)). tion to executing the transaction. The time for filing comments has expired, and the Unlike prior cases approved by the Board, however, Board has considered the application and all com- Company plans to provide primarily clearing—as opments received in light of the public interest factors set posed to clearing and execution—services. As a clearforth in section 4(c)(8) of the BHC Act.2 ing agent, Company will guarantee the financial per- Amro, with consolidated assets equivalent to ap- formance of its customers to the clearing organizations proximately $92.9 billion, is the second largest banking of the exchanges on which it operates.8 After the start organization in The Netherlands.3 In the United of trading on any given day, Company is obligated to States, Amro maintains, in addition to European settle each trade entered into by its customers, even in American Bank, Uniondale, New York, a branch in the event that a customer does not have the financial New York and representative offices in Chicago, resources to honor its obligation. Because trades have Houston, and Los Angeles.4 Accordingly, Amro is already been executed at the time they are presented subject to the nonbanking restrictions of section 4 of to Company by these professional floor traders, Comthe BHC Act as a bank holding company. pany will be unable to decline transactions that repre- The Board has previously approved the execution sent unacceptable risk. On an intraday basis, profesand clearance of financial instruments as a permissible sional traders, who are not employees of Company nonbanking activity.5 and who trade in relatively volatile instruments, could expose Company to financial risks beyond the trader's capacity to repay and beyond Company's resources. 1. Most of the professional traders will be market makers and specialists, including individuals, small partnerships, or small corporations, that will trade primarily on the Chicago Board Options Exchange (the "CBOE"). Market makers on the CBOE are floor to securities brokerage activities. See BankAmerica Corporation, 69 traders that perform a dealer function by trading for their own Federal Reserve Bulletin 105 (1983), petition for review denied, accounts, at their own risk, and for their own profit. Market makers Securities Industry Association v. Board of Governors of the Federal compete with other market makers assigned to the same class of System, 716 F.2d 92 (2d Cir. 1983), a f f dm U.S. 207 (1984), and The options. In contrast, floor brokers on the CBOE generally act only as Bank of New York Company, Inc., 74 Federal Reserve Bulletin 257, an agent, executing customer and firm proprietary orders. 261 (1988); see also 48 Federal Register 37,003, 37,004 (1983)). 2. The Board has received written comments opposing the applica- 6. See id. tion from the Investment Company Institute ("ICI"), a trade associ- 1. Execution is the initial step in the process by which a security, ation of the mutual fund industry. The ICI has objected to the future or option is bought and sold on an exchange. Clearing is the Applicants's proposal to the extent that it can be construed to seek second step in this process and basically involves the settlement of the approval for Company to broker securities issued by investment transaction. Buyers and sellers usually deal with each other through a companies that are sponsored or advised by Applicants, their bank clearing agent rather than directly. The "middleman" in each trade, and nonbank affiliates, or subsidiaries of their bank affiliates. The the clearing firm, assumes the obligations of the underlying parties and Applicants have not requested approval to broker such securities. provides the short-term credit that the floor traders need to meet 3. Data are as of December 31, 1989. margin requirements imposed on these traders by the various ex- 4. One of the Applicants, ABN/AMRO Holding, N.V., is also changes. subject to the BHC Act through its ownership of Algemene Bank 8. Clearing firms also may be liable for the obligations of other Nederland N.V. ("ABN"), another bank in the Netherlands. ABN members of the exchange. Generally, losses of a failed member firm operates in the U.S. through five branches, five agencies and ABN/ are covered in the following order: LaSalle North America Inc., a bank holding company located in (1) by the assets of the failed firm; Chicago that has ten bank subsidiaries. (2) by the excess capital of the clearing organization; 5. See, e.g., sections 225.25(b)(3) (trust companies engaging in (3) by the guarantee fund of the clearing organization; and agency activities related to the clearing of securities); 225.25(b)(15) (4) by direct assessments made on surviving member firms. Because (securities brokerage activities); and 225.25(b)(18) (execution and member clearing firms are the ultimate source of capital for both the clearance of futures and options on futures) of the Board's Regulation clearing association and the guarantee fund, the surviving firms will Y. The Board has also recognized that clearing activities are incidental ultimately bear the burden of any loss. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 191 Applicants propose to limit the exposure created by sible adverse effects, such as undue concentration of Company's clearing activities by establishing risk resources, decreased or unfair competition, conflicts guidelines and procedures to monitor the intraday of interests, or unsound banking practices."13 trading activities of Company's floor traders. At pre- The Board has carefully considered the possible sent, however, there is no system generally available benefits associated with this proposal, including the to the industry for monitoring the intraday activities of entry of Applicants into a relatively concentrated floor traders on a real-time basis.9 The lack of a market, Applicants's experience with similar activities mechanism to monitor intraday trading presents the on foreign exchanges, and Company's proposed risk possibility that a professional floor trader could greatly management systems. Having considered all of the exceed Company's risk limits and incur substantial facts of record, however, the Board believes that the losses before Company could act to mitigate its credit proposal, as currently structured and given the abrisk exposure.10 sence of an effective means to monitor and limit the These circumstances potentially expose clearing potential credit risk exposure to the parent bank firms to substantial losses. Moreover, if the clearing holding company, involves potential adverse effects firm has exhausted all or most of its capital by funding that outweigh the potential public benefits. the obligations of floor traders who have lost substan- Based on the foregoing, the Board has determined tial amounts of money in trading, parent companies of that the balance of public interest factors the Board is the clearing firm may be required to cover the firm's required to consider under section 4(c)(8) of the BHC remaining liabilities.11 While the Board recognizes that Act is not favorable. Accordingly, the application is these risks may be acceptable for nonbanking institu- denied. tions currently providing these services, the applica- By order of the Board of Governors, effective tion raises the issue of whether these risks are appro- January 9, 1991. priate for banking organizations in the United States. In order to approve an application submitted pursu- Voting for this action: Governors Angell, Kelley, La Ware, ant to section 4(c)(8) of the BHC Act, the Board is and Mullins. Absent and not voting: Chairman Greenspan and Governor Seger. required to determine that the proposed activity is "so closely related to banking . .. as to be a proper incident thereto."12 In considering whether a pro- WILLIAM W. WILES Secretary of the Board posed new activity would be a proper incident to banking, the Board is required to determine that the Orders Approved Under Sections 3 and 4 of performance of the proposed activity by Applicants, the Bank Holding Company Act "can reasonably be expected to produce benefits to the public, such as greater convenience, increased Whitcorp Financial Company competition, or gains in efficiency, that outweigh pos- Leoti, Kansas Order Approving the Acquisition of a Bank and 9. Company's traders will operate for the most part on exchanges using an open outcry system as opposed to an electronic trading Nonbanking Subsidiary system. As a result, Company may not know, until the end of the trading day, the positions to which it has been committed on a Whitcorp Financial Company, Leoti, Kansas ("Whitreal-time basis. 10. Professional floor traders generally operate with much higher corp"), a bank holding company within the meaning of levels of leverage than the average brokerage customer of a securities the Bank Holding Company Act ("BHC Act"), has firm. Moreover, since most of Company's customers will be market applied for the Board's approval under section 3(a)(3) makers, these traders may at times be inclined to take positions contrary to the market. of the BHC Act (12 U.S.C. § 1842(a)(3)), to acquire 11. As a consequence of the stock market break of October 1987, 52.03 percent of the voting shares of First National nearly 35 percent of the clearing members of the Options Clearing Corporation required capital contributions from parent firms to cover Bank in Lamar, Lamar, Colorado ("Lamar Bank"). their losses. See U.S. General Accounting Office report "Clearance Whitcorp has also applied for the Board's approval and Settlement Reform," GAO/GGD-90-33, p. 30 (April 1990). Such under section 4(c)(8) of the BHC Act to acquire events have exposed some bank holding companies to substantial financial liabilities. In particular, First Options of Chicago, Inc. Securities Investment Company, Lamar, Colorado ("FOC"), a clearing subsidiary of Continental Bank N.A. ("Securities Investment"), and through Securities In- ("CBNA"), lost approximately $90 million dollars in the course of one vestment, engage in holding and servicing consumer week. When FOC could not meet margin calls, CBNA and its parent holding companies had to infuse funds into FOC to avoid its default. loans and selling credit-related life, accident, and The Applicants have stated that they propose to provide the same type health insurance pursuant to sections 225.25(b)(1) and of clearing and execution services that FOC offers, and become a member of the same exchanges and clearing corporations to which FOC belongs. 12. 12 U.S.C. § 1843(c)(8). 13. Id. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

192 Federal Reserve Bulletin • March 1991 (b)(8)(i) of the Board's Regulation Y (12 C.F.R. imately $36.5 million, representing less than 1 percent 225.25(b)(1) and (b)(8)(i)). In addition, Whitcorp has of the total deposits in commercial banks in Kansas.4 requested approval to continue to engage in general Lamar Bank controls deposits of $57.6 million, repreinsurance agency activities in Leoti, Kansas, pursuant senting less than 1 percent of the total deposits in to section 225.25(b)(8)(iii) of Regulation Y (12 C.F.R. commercial banking organizations in Colorado. Con- 225.25(b)(8)(iii)). summation of this proposal would not result in an Notice of the applications, affording interested per- adverse effect on the concentration of banking resons an opportunity to submit comments, has been sources in Kansas or Colorado. duly published (55 Federal Register 42,478 and 49,343 Whitcorp and Lamar Bank do not compete in any (1990)). The time for filing comments has expired, and banking market. Accordingly, consummation of this the Board has considered the applications and all the proposal would not have a significantly adverse effect comments received in light of the factors set forth in upon existing competition in any relevant banking sections 3(c) and 4(c)(8) of the BHC Act. market. Section 3(d) of the BHC Act (12 U.S.C. § 1842(d)), In connection with this proposal, the Board has the Douglas Amendment, prohibits the Board from received comments from certain individuals ("Protesapproving an application by a bank holding company tants") requesting denial of the application. The prito acquire control of any bank located outside of the mary concerns of the Protestants were: bank holding company's home state, unless such ac- (i) a possible violation of the Change in Bank quisition is "specifically authorized by the statute laws Control Act ("CIBC Act") by Whitcorp's prinof the State in which [the] bank is located, by language cipal shareholder through acquisition of an opto that effect and not merely by implication." Whit- tion permitting control of over 10 percent of the corp's home state is Kansas and Lamar Bank's home voting shares of Lamar Bank without prior state is Colorado.1 regulatory approval; and Effective January 1, 1991, Colorado law specifically (ii) whether an out-of-state bank holding comauthorizes any out-of-state bank holding company to pany possesses the managerial ability to meet acquire banks located in Colorado if: the needs of the local Lamar community.5 (i) the bank to be acquired has been in operation since January 1, 1988, or at least five years In regard to Protestants' first concern, the Board has when acquired; reviewed the option agreement and has determined (ii) the out-of-state company will not control that no CIBC Act violation occurred. In that regard, more than 25 percent of the aggregate deposits the Board has previously determined under the BHC in Colorado financial institutions as a result of Act that similar option agreements regarding voting the acquisition; and shares do not raise a rebuttable presumption of control (iii) the acquiring out-of-state company will over those shares.6 Under the provisions of the have in the aggregate a ratio of total capital to Board's Regulation Y implementing the BHC Act, a total assets of at least 6 percent immediately rebuttable presumption of control does not apply to before the acquisition.2 agreements for the acquisition of shares that continue Lamar Bank has been in operation since 1934 and only for the time necessary to obtain approval from the controls less than 1 percent of the total deposits held Board on an application.7 The option involved in this by commercial banks in Colorado. In addition, Whit- case falls within those standards as it does not exceed corp's consolidated total capital to total assets ratio one year in duration and, moreover, Whitcorp filed exceeds 6 percent. Accordingly, the Board believes these applications within a reasonably prompt period following the execution of the option agreement. that the proposed acquisition is specifically authorized by the statute laws of Colorado and is not barred by the Douglas Amendment.3 Whitcorp operates only one subsidiary bank, which 4. Banking and market share data are as of September 30, 1990. is located in Kansas and controls deposits of approx- 5. In addition, Protestants filed comments that concerned: (i) the inequitable treatment of some Lamar Bank shareholders, including unequal prices for shares purchased; (ii) the appropriateness of the lack of notification to minority 1. A bank holding company's home state is that state in which the shareholders regarding the acquisition; operations of the bank holding company's banking subsidiaries were (iii) whether Whitcorp intends to purchase the remaining shares principally conducted on July 1, 1966, or the date on which the held by the minority shareholders; and company became a bank holding company, whichever is later. (iv) whether Whitcorp intends to retain the present staff at Lamar 2. Colo. Rev. Stat. §§ 11-6.4-103(3), 4-103(6), and 4-103(7) (Supp. Bank. 1990). 6. See, e.g., Suburban Bancorp, Inc., 71 Federal Reserve Bulletin 3. The Colorado Bank Board approved Whitcorp's application to 581 (1985). acquire Lamar Bank on January 17, 1991. 7. 12 C.F.R. 225.31(d)(l)(ii)(c). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 193 The Office of the Comptroller of the Currency, the In order to approve the section 4 application, the primary regulator of Lamar Bank, has also reviewed Board is also required to determine that the perforthe alleged CIBC Act violation and has stated that mance of the proposed activities by Whitcorp "can under its regulations the transaction as proposed does reasonably be expected to produce benefits to the not require the filing of a notice with that office under public . . . that outweigh possible adverse effects, the CIBC Act.® such as undue concentration of resources, decreased In response to Protestants' second concern regard- or unfair competition, conflicts of interests, or uning Whitcorp's ability to meet local community needs, sound banking practices." 12 U.S.C. § 1843(c)(8). Whitcorp has stated that it will continue to operate In light of the facts of record, the Board concludes Lamar Bank so as to meet the needs of its community, that Whitcorp's acquisition of Securities Investment and points to its experience with community banking would not significantly affect competition in any relein Kansas including, in particular, agricultural commu- vant market. In addition, Whitcorp's general insurnities.9 ance agency activities would continue to provide a The Board has carefully reviewed Protestants' com- source for insurance for its customers in the Leoti, ments and concerns in light of the record and believes Kansas, market. Accordingly, consummation of this that they do not raise issues under section 3(c) of the proposal would not have a significantly adverse effect BHC Act that reflect so adversely on Whitcorp's on competition in any relevant market. There also is managerial resources as to warrant denial of the appli- no evidence in the record to indicate that approval of cations. this proposal would result in any significantly adverse On the basis of all the facts of record, the Board effects, such as undue concentration of resources, believes that the financial and managerial resources decreased or unfair competition, conflicts of interests, and future prospects of Whitcorp, its subsidiary bank, or unsound banking practices. Accordingly, the Board and Lamar Bank are consistent with approval. Con- has determined that the balance of public interest siderations relating to the convenience and needs of factors it must consider under section 4(c)(8) of the the community to be served also are consistent with BHC Act is favorable and consistent with approval of approval. Whitcorp's application to acquire Securities Investment and to engage in general insurance agency activ- Whitcorp has also applied under section 4(c)(8) of ities.12 the BHC Act to acquire 50.37 percent of the voting shares of Securities Investment. Securities Investment Based on the foregoing and other facts of record, the engages in holding and servicing consumer loans and Board has determined that the applications under selling credit-related life, accident, and health insur- sections 3 and 4 of the BHC Act should be, and hereby ance. The Board previously has determined that such are, approved. The Lamar Bank acquisition shall not activities are permissible for bank holding companies be consummated before the thirtieth calendar day under sections 225.25(b)(1) and (b)(8)(i) of the Board's following the effective date of this Order, and the Regulation Y (12 C.F.R. 225.25(b)(1) and (b)(8)(i))."> proposed bank and nonbank acquisitions shall not be In addition, Whitcorp has applied under section consummated later than three months after the effec- 4(c)(8) to continue to conduct general insurance tive date of this Order, unless such period is extended agency activities in Leoti, Kansas (where Whitcorp is for good cause by the Board or by the Federal Reserve located), a town with a population not exceeding Bank of Kansas City, acting pursuant to delegated 5,000. The Board previously has determined that such authority. The determinations as to the nonbanking activities are permissible for bank holding companies activities are subject to all of the conditions contained under section 225.25(b)(8)(iii) of the Board's Regula- in the Board's Regulation Y, including those in section Y (12 C.F.R. 225.25(b)(8)(iii)).n tions 225.4(d) and 225.23(b)(3) (12 C.F.R. 225.4(d) and 225.23(b)(3)), and to the Board's authority to require 8. 12 C.F.R 5.50. 9. In that regard, the Board notes that Whitcorp's subsidiary banks all received satisfactory ratings in their most recent examinations for sively under the provisions of section 4(c)(8) of the BHC Act and performance under the Community Reinvestment Act. section 225.25(b)(8)(iii) of the Board's Regulation Y. 10. Whitcorp has also expressed its intention to cease these non- 12. Whitcorp also has requested a review of its grandfather rights, banking activities shortly after consummation of the proposal. Secu- pursuant to section 4(a)(2) of the BHC Act (12 U.S.C. § 1843(a)(2)), to rities Investment would continue to hold two real estate parcels continue to engage in certain cattle feeding operations. Under that located adjacent to Lamar Bank, which Whitcorp intends to use for section, the Board is required to review grandfathered activities future bank operations pursuant to section 225.22(a)(2)(vi) of Regula- conducted pursuant to these provisions when a company controls tion Y (12 C.F.R. 225.22(a)(2)(vi)). bank assets in excess of $60 million. After consummation, Whitcorp 11. Whitcorp currently engages in general insurance agency activi- would control in excess of $60 million in bank assets. Upon a review ties in Leoti pursuant to its grandfather rights under section 4(a)(2) of of the record, the Board believes that continued conduct of these the BHC Act (12 U.S.C. § 1843(a)(2)). After consummation, Whit- activities by Whitcorp at this time is inconsistent with the standards corp intends to conduct its general insurance agency activities exclu- set forth in section 4(a)(2) of the BHC Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

194 Federal Reserve Bulletin • March 1991 such modification or termination of the activities of a banking organizations in the state.1 Beal City Branch holding company or any of its subsidiaries as the controls deposits of approximately $2.5 million, repre- Board finds necessary to assure compliance with, or senting less than 1 percent of total deposits in comprevent evasions of, the provisions and purposes of mercial banks in the state.2 Upon consummation of the BHC Act and the Board's regulations and orders this proposal, Isabella would remain the 32nd largest issued thereunder. commercial banking organization in Michigan, con- By order of the Board of Governors, effective trolling deposits of approximately $150.8 million, rep- January 22, 1991. resenting less than 1 percent of the total deposits in commercial banks in the state. Accordingly, consum- Voting for this action: Governors Seger, Angell, Kelley, mation of the proposal would not have a significantly LaWare, and Mullins. Absent and not voting: Chairman adverse effect on the concentration of banking re- Greenspan. sources in Michigan. Isabella and Beal City Branch compete directly in JENNIFER J. JOHNSON the Mount Pleasant banking market.3 Isabella is the Associate Secretary of the Board largest of five commercial banking organizations in the market, controlling deposits of $135.8 million, repre- Orders Issued Under Bank Merger Act senting 39.1 percent of total deposits in commercial banking organizations in the market. Beal City Branch controls deposits of $2.5 million, representing less Isabella Bank and Trust than 1 percent of the total deposits in commercial Mount Pleasant, Michigan banking organizations in the market.4 Upon consummation of the proposal, Isabella would control $138.3 million in deposits, representing 39.8 percent of the Order Approving Acquisition of Certain Assets and total deposits in commercial banking organizations in Assumption of Certain Liabilities of a Bank and the the market. The Mount Pleasant market is considered Establishment of a Branch highly concentrated. Upon consummation of the proposal, the Herfindahl-Hirschman Index ("HHI") Isabella Bank and Trust, Mount Pleasant, Michigan would increase by 30 points, to a level of 2644.5 ("Isabella"), a member bank, has applied for the Although consummation of this proposal would re- Board's approval under section 18(c) of the Federal sult in an increase in market concentration, five com- Deposit Insurance Act (12 U.S.C. § 1828(c)) (the mercial banking organizations, including FOA, and "Bank Merger Act") to purchase certain assets from three savings associations would continue to operate and assume certain liabilities of the Beal City Branch of First of America Bank - Mount Pleasant, Mount Pleasant, Michigan ("Beal City Branch") and thereby 1. Commercial bank deposit data are as of June 30, 1988. Savings to establish a branch pursuant to section 9 of the association data are as of June 30, 1987. Federal Reserve Act (12 U.S.C. § 321). 2. Beal City Branch is a branch of First of America Bank - Mount Pleasant, Mount Pleasant, Michigan ("First of America"), a subsid- Notice of the applications, affording interested periary of First of America Corporation, Kalamazoo, Michigan sons an opportunity to submit comments, has been ("FOA"). FOA is the fifth largest commercial banking organization in given in accordance with the Bank Merger Act and the Michigan, controlling deposits of approximately $6.1 billion, representing 8.9 percent of the total commercial bank deposits in the state. Board's Rules of Procedure (12 C.F.R. 262.3(b)). As 3. The Mount Pleasant banking market is approximated by Isabella required by the Bank Merger Act, reports on the County, plus the southern half of Clare County, Michigan. competitive effects of the merger were requested from 4. FOA is the third largest commercial banking organization in the market, controlling deposits of approximately $63.7 million, reprethe United States Attorney General, the Office of the senting 18.3 percent of total deposits in commercial banking organi- Comptroller of the Currency, and the Federal Deposit zations in the market. 5. Under the revised Department of Justice Merger Guidelines, 49 Insurance Corporation. The time for filing comments Federal Register 26,823 (June 29, 1984), a market in which the has expired, and the Board has considered the appli- post-merger HHI is above 1800 is considered highly concentrated, and cations and all the comments received in light of the the Justice Department is likely to challenge a merger that increases the HHI by more than 50 points unless other factors indicate that the factors set forth in the Bank Merger Act merger will not substantially lessen competition. The Justice Depart- (12 U.S.C. § 1828(c)(5)). ment has informed the Board that a bank merger or acquisition generally will not be challenged (in the absence of other factors Isabella, the only subsidiary of IBT Bancorp, Inc., indicating anticompetitive effects) unless the post-merger HHI market Mount Pleasant, Michigan, is the 32nd largest com- is at least 1800 and the merger increases the HHI by at least 200 mercial banking organization in Michigan, controlling points. The Justice Department has stated that the higher than normal HHI thresholds for screening bank mergers for anticompetitive effects deposits of approximately $148.3 million, representing implicitly recognizes the competitive effect of limited-purpose lenders less than 1 percent of the total deposits in commercial and other non-depository financial entities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 195 in the market upon consummation of the proposal.6 present site of the Beal City Branch. The Board has Accordingly, based on the facts of record in this case, considered the factors it is required to consider when the Board has determined that consummation of the approving applications for establishing branches purproposal would not have a significantly adverse effect suant to section 9 of the Federal Reserve Act on existing competition in the Mount Pleasant banking (12 U.S.C. § 322) and finds those factors to be consismarket.7 tent with approval. The financial and managerial resources and future Based on the foregoing and other facts of record, the prospects of Isabella and Beal City Branch are consis- Board has determined that the applications should be, tent with approval. Considerations relating to the and hereby are, approved. This transaction shall not convenience and needs of the community to be served be consummated before the thirtieth calendar day also are consistent with approval. Isabella also has following the effective date of this Order, or later than applied under section 9 of the Federal Reserve Act three months after the effective date of this Order, (12 U.S.C. § 321 et seq.), to establish a branch at the unless such period is extended for good cause by the Board or by the Federal Reserve Bank of Chicago, acting pursuant to delegated authority. 6. The Board previously has indicated that thrift institutions have By order of the Board of Governors, effective become, or have the potential to become, major competitors of January 14, 1991. commercial banks. Midwest Financial Group, 75 Federal Reserve Bulletin 386 (1989); CB&T Bancshares, Inc., 75 Federal Reserve Bulletin 381 (1989); National City Corporation, 70 Federal Reserve Voting for this action: Chairman Greenspan and Governors Bulletin 743 (1984). If 50 percent of the deposits held by thrift institutions were included in the calculation of market concentration, Seger, Angell, Kelley, LaWare, and Mullins. Isabella would control approximately 36.5 percent of market deposits. The HHI would increase by 26 points, to a level of 2254. 7. The Department of Justice has notified the Board that, in its JENNIFER J. JOHNSON opinion, consummation of the transaction would not have a signifi- Associate Secretary of the Board cantly adverse effect on competition. ORDERS ISSUED UNDER THE FINANCIAL INSTITUTIONS REFORM, RECOVERY, AND ENFORCEMENT ACT ("FIRREA 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 Bank America Corporation, The Benjamin Franklin Seafirst Bank Oregon, January 16, 1991 San Francisco, California Savings and Loan Woodburn, Oregon Association, Portland, Oregon First Fidelity Bancorporation, City Savings, F.S.B., First Fidelity Bank, January 11, 1991 Newark, New Jersey Somerset, New Jersey N.A., (Essex County, Newark, Middlesex County, New Jersey Morris County, Ocean County, and Union County Branches) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

196 Federal Reserve Bulletin • March 1991 FIRREA Orders—Continued Acquired Surviving Approval Bank Holding Company Thrift Bank(s) Date Republic Banking Corporation Rebank Netherlands General Federal January 11, 1991 of Florida, Antilees, N.V., Savings Bank, Miami, Florida Miami, Florida Miami, Florida Republic National Bank of Miami, Miami, Florida Southwest Georgia Financial Moultrie Savings Bank, Moultrie National January 4, 1991 Corporation, F.S.B., Bank, Moultrie, Georgia Moultrie, Georgia Moultrie, Georgia Valley Bancorporation, Valley Bank Thiensville Great American January 23, 1991 Appleton, Wisconsin Mequon, Savings Bank, Thiensville, Wisconsin FSB, Milwaukee, Wisconsin APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 3 Effective Applicant(s) Bank(s) ^^ BankAmerica Corporation, Bank of America Idaho, January 11, 1991 San Francisco, California Coeur D'Alene, Idaho Section 4 Effective Applicant(s) Bank(s) date Fleet/Norstar Financial Group, Inc. John Dawson & Associates, Inc., January 16, 1991 Providence, Rhode Island Chicago, Illinois Fleet/Norstar New York, Inc., Albany, New York Republic Banking Corporation of Republic Federal Interim Savings January 11, 1991 Florida, Bank, Miami, Florida Miami, Florida Rebank Netherlands Antilles, N.V.. Miami, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 197 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 Adairsville Bancshares, Inc., The Peoples Bank, Atlanta December 28, 1990 Adairsville, Georgia Crawfordville, Georgia Arneson Bancshares, Inc., Clear Lake Bank and Chicago January 3, 1991 Clear Lake, Iowa Trust Company, Clear Lake, Iowa Banc One Corporation, Marine Bank Chicago, Cleveland January 9, 1991 Columbus, Ohio Chicago, Illinois Bank of North America Bank of North America, Atlanta January 18, 1991 Bancorp, Inc., Miami, Florida Miami, Florida Blackshear Bancshares, Inc., The Blackshear Bank, Atlanta December 19, 1990 Blackshear, Georgia Blackshear, Georgia Brooke Holdings, Inc., Gypsum Valley Agency, Kansas City December 21, 1990 Jewell, Kansas Inc., Jewell, Kansas CNB Bancorp, Inc., The Citizens National Kansas City January 4, 1991 Independence, Kansas Bank in Independence, Independence, Kansas CNB Bancorp, Inc. Employees CNB Bancorp, Inc., Kansas City January 4, 1991 Stock Ownership Plan, Independence, Kansas Independence, Kansas CNB Financial Corporation, Clewiston National Bank, Atlanta December 18, 1990 Clewiston, Florida Clewiston, Florida Community Independent The Farmers State Bank Cleveland January 22, 1991 Bancorp, Inc., of West Salem, West Salem, Ohio West Salem, Ohio Ellsworth Bancshares, Inc., Ellsworth State Bank, Minneapolis January 10, 1991 Ellsworth, Minnesota Ellsworth, Minnesota Fidelity Bancorporation, Inc., Fidelity Bank, Dallas December 24, 1990 Dover, Delaware Forth Worth, Texas First Bancshares of Stevenson, The First National Bank Atlanta December 18, 1990 Inc., of Stevenson, Stevenson, Alabama Stevenson, Alabama First Commercial Bancshares, Citizens Independent Atlanta January 15, 1991 Inc., Bancorp, Jasper, Alabama Huntsville, Alabama First McKinley Corporation, Wyoming National Bank Kansas City January 18, 1991 Evanston, Wyoming Kemmerer, Kemmerer, Wyoming Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

198 Federal Reserve Bulletin • March 1991 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank date First Neighborhood Bancshares, The First National Bank Chicago December 21, 1990 Inc., in Toledo, Toledo, Illinois Toledo, Illinois Grygla Financial Corporation, American State Bank of Minneapolis January 11, 1991 Grygla, Minnesota Grygla, Grygla, Minnesota Haviland Bancshares, Inc., Banco Insurance Agency, Kansas City January 10, 1991 Haviland, Kansas Inc., Haviland, Kansas Hettinger Holding Company, First National Bank, Minneapolis December 27, 1990 Inc., Hettinger, Hettinger, North Dakota North Dakota INB Financial Corporation, Homestate Bancorp, Inc., Chicago December 21, 1990 Indianapolis, Indiana Salem, Indiana InterWest National Bancorp, Fallon National Bank of San Francisco January 11, 1991 Reno, Nevada Nevada, Fallon, Nevada Jacob Schmidt Company and Farmers State Bank of Minneapolis December 26, 1990 American Bancorporation, Rothsay, Inc., Rothsay, Minnesota St. Paul, Minnesota Kislak Financial Corporation, Kislak National Bank, Atlanta January 14, 1991 Miami Lakes, Florida North Miami, Florida Minowa Banshares, Inc., Decorah State Bank, Chicago January 23, 1991 Decorah, Iowa Decorah, Iowa The First National Bank of Mabel, Mabel, Minnesota Norwest Corporation, Blackhawk Minneapolis December 28, 1990 Minneapolis, Minnesota Bancorporation, Waterloo, Iowa Phelps County Bank Employee Phelps County St. Louis December 24, 1990 Stock Ownership Plan, Bancshares, Inc., Rolla, Missouri Rolla, Missouri Plainview Holding Company, Cones State Bank, Kansas City December 28, 1990 Plain view, Nebraska Pierce, Nebraska RCB Holding Co., Roseville Community Minneapolis January 22, 1991 Roseville, Minnesota Bank, N.A., Roseville, Minnesota Readlyn Bancshares, Inc., Ashton Bancshares, Inc., Chicago December 27, 1990 St. Paul, Minnesota Ashton, Iowa Tripoli Bancshares, Inc., St. Paul, Minnesota Britt Bancshares, St. Paul, Minnesota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 199 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank date Rice Lake Bancorp, Inc., Prairie Farm Bank Minneapolis January 3, 1991 Rice Lake, Wisconsin Shares, Inc., Prairie Farm, Wisconsin Security Corporation, Security Exchange Kansas City December 26, 1990 Duncan, Oklahoma Bancorp, Inc., Duncan, Oklahoma Exchange Financial Corporation, Ardmore, Oklahoma Charter Bancshares, Inc., Oklahoma City, Oklahoma Security State Bank Holding First State Bank of New Minneapolis January 24, 1991 Company, Rockford, Hannaford, North Dakota New Rockford, North Dakota Shipman Bancorp, Inc., Citizens State Bank of St. Louis December 20, 1990 Shipman, Illinois Shipman, Shipman, Illinois STAR Financial Group, Inc., Trustcorp Bank, Chicago December 21, 1990 Marion, Indiana Indianapolis, Indianapolis, Indiana Synovus Financial Corp., Sea Island Bankshares, Atlanta January 10, 1991 Columbus, Georgia Inc., TB&C Bancshares, Inc., Statesboro, Georgia Columbus, Georgia VB&T Bancshares Corp., Valdosta Bank & Trust, Atlanta January 18, 1991 Valdosta, Georgia Valdosta, Georgia Wilmington Trust Corporation, Wilmington Trust Philadelphia January 3, 1991 Wilmington, Delaware Company, Wilmington, Delaware Section 4 Nonbanking Reserve Effective Applicant(s) Activity/Company Bank date ANB Corporation, Muncie Federal Savings Chicago January 14, 1991 Muncie, Indiana Bank, Muncie, Indiana BB&T Financial Corporation, Home Savings and Loan Richmond January 18, 1991 Wilson, North Carolina Association, Inc., Durham, North Carolina Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

200 Federal Reserve Bulletin • March 1991 Section 4—Continued Nonbanking Reserve Effective Applicant(s) Activity/Company Bank date Carolina First Corporation, Carolina Interim Savings Richmond December 28, 1990 Greenville, South Carolina Bank, F.S.B., Greenville, South Carolina Chambers Bancshares, Inc., Petit Jean Insurance St. Louis January 9, 1991 Danville, Arkansas Agency, Danville, Arkansas Osterreichische Landerbank Roley, Nichols Capital New York December 24, 1990 Aktiengesellschaft, Group, Inc., Vienna, Austria Los Angeles, California Valley Bancorporation, Great American Savings Chicago January 23, 1991 Appleton, Wisconsin Bank, FSB, Milwaukee, Wisconsin Western Federal Savings and Loan Association, Sparta, 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 First of America Bank-Northern First of America Chicago January 8, 1991 Michigan, Bank-Manistee, Traverse City, Michigan Manistee, Michigan Montana Bank of Billings, Montana Bancsystem, Minneapolis December 27, 1990 Billings, Montana Inc., Billings, Montana Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 201 Bank Merger Act Applications Approved—Continued Reserve Effective Applicant(s) Bank(s) Bank date Trust Company Bank, Trust Company Bank of Atlanta December 18, 1990 Atlanta, Georgia Carroll County, Bowdon, Georgia Trust Company Bank of Clayton County, Jonesboro, Georgia Trust Company Bank of Cobb County, N.A., Atlanta, Georgia Trust Company Bank of Gwinnett, Lawrenceville, Georgia Trust Company Bank of Henry County, N.A., McDonough, Georgia Trust Company Bank of Rockdale, Conyers, Georgia PENDING CASES INVOLVING THE BOARD OF Stanley v. Board of Governors, No. 90-3183 (7th GOVERNORS Circuit, filed October 3, 1990). Petition for review of Board order imposing civil money penalties on five former bank holding company directors. This list of pending cases does not include suits Sibille v. Federal Reserve Bank of New York and against the Federal Reserve Banks in which the Board Board of Governors, No. 90-CIV-5898 (S.D. New of Governors is not named a party. York, filed September 12, 1990). Appeal of denial of Freedom of Information Act request. State of Illinois v. Board of Governors, No. 90-C-6863 Kuhns v. Board of Governors, No. 90-1398 (D.C. Cir., (N.D. Illinois, filed November 27, 1990). Action filed July 30, 1990). Petition for review of Board seeking to restrain the Board from providing state order denying request for attorney's fees pursuant examination materials in response to a Congres- to Equal Access to Justice Act. Oral argument is sional subpoena. On December 28, 1990, the court scheduled for February 15, 1991. issued a preliminary injunction preventing the Board May v. Board of Governors, No. 90-1316 (D.C. Cir., and the Chicago Reserve Bank from providing docfiled July 27, 1990). Appeal of District Court order uments relating to the state examination in response dismissing plaintiff's action under Freedom of Inforto the subpoena. The House Committee on Banking, mation and Privacy Acts. Board's motion for sum- Finance and Urban Affairs has appealed the injuncmary affirmance filed October 12, 1990. tion. Burke v. Board of Governors, No. 90-9509 (10th Citicorp v. Board of Governors, No. 90-4124 (2d Circuit, filed February 27, 1990). Petition for review Circuit, filed October 4,1990). Petition for review of of Board orders assessing civil money penalties and Board order requiring Citicorp to terminate certain issuing orders of prohibition. Awaiting scheduling of insurance activities conducted pursuant to Delaware oral argument. law by an indirect nonbank subsidiary. The Dela- BancTEXAS Group, Inc. v. Board of Governors, No. ware Bankers Association and the State of Delaware CA 3-90-0236-R (N.D. Texas, filed February 2, have intervened on behalf of petitioners, and insur- 1990). Suit for preliminary injunction enjoining the ance trade associations have intervened on behalf of Board from enforcing a temporary order to cease and the Board in the action. Oral argument is scheduled desist requiring injection of capital into plaintiff's for February 7, 1991. subsidiary banks under the Board's source of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

202 Federal Reserve Bulletin • March 1991 strength doctrine. District court granted preliminary MCorp v. Board of Governors, No. 89-2816 (5th Cir., injunction on June 5,1990, in light of MCorp v. Board filed May 2, 1989). Appeal of preliminary injunction of Governors, 900 F.2d 852 (5th Cir. 1990). On against the Board enjoining pending and future December 20, settlement of the administrative ac- enforcement actions against a bank holding comtion. pany now in bankruptcy. On May 15,1990, the Fifth Rutledge v. Board of Governors, No. 90-7599 (11th Circuit vacated the district court's order enjoining Cir., filed August 21, 1990). Appeal of district court the Board from proceeding with enforcement acgrant of summary judgment for defendants in tort tions based on section 23A of the Federal Reserve suit challenging Board and Reserve Bank supervi- Act, but upheld the district court's order enjoining sory actions. The Court of Appeals summarily af- such actions based on the Board's source-offirmed the lower court on January 17, 1991. strength doctrine. 900 F.2d 852 (5th Cir. 1990). On Kaimowitz v. Board of Governors, No. 90-3067 (11th December 10, both parties filed petitions for certio- Cir., filed January 23, 1990). Petition for review of rari in the Supreme Court, Nos. 90-913, 90-914. Board order dated December 22, 1989, approving The petitions are pending. 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 was denied on January 3, 1991. Consumers Union of U.S., Inc. v. Board of Gover- Awaiting trial date. nors, No. 90-5186 (D.C. Cir., filed June 29, 1990). Appeal of District Court decision upholding amendments to Regulation Z implementing the Home Equity Loan Consumer Protection Act. Oral argu- WRITTEN AGREEMENTS APPROVED BY FEDERAL ment scheduled for February 20, 1991. RESERVE BANKS Synovus Financial Corp. v. Board of Governors, No. 89-1394 (D.C. Cir., filed June 21, 1989). Petition for Fairfield County Bancorp, Inc. review of Board order permitting relocation of a Stamford, Connecticut bank holding company's national bank subsidiary from Alabama to Georgia. Oral argument was held on October 11, 1990. On December 10, the Justice The Federal Reserve Board announced on January 18, Department filed a brief on behalf of the Board and 1991, the execution of a Written Agreement between the Office of the Comptroller of the Currency in the Federal Reserve Bank of New York, Banking response to a request from the court regarding an Commissioner, State of Connecticut, and Fairfield issue in the case. County Bancorp, Inc., Stamford, Connecticut. 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 POUCY 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 A33 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

59 Federal Reserve Bulletin • March 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 A38 Mortgage debt outstanding REPORTED BY BANKS IN THE UNITED STATES CONSUMER INSTALLMENT CREDIT A59 Liabilities to and claims on foreigners A39 Total outstanding and net change A60 Liabilities to foreigners A40 Terms A62 Banks' own claims on foreigners 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 A41 Funds raised in U.S. credit markets domestic offices and foreign branches A43 Direct and indirect sources of funds to credit markets A44 Summary of credit market debt outstanding REPORTED BY NONBANKING BUSINESS A45 Summary of credit market claims, by holder ENTERPRISES IN THE UNITED STATES A65 Liabilities to unaffiliated foreigners Domestic Nonfinancial Statistics A66 Claims on unaffiliated foreigners SELECTED MEASURES SECURITIES HOLDINGS AND TRANSACTIONS A46 Nonfinancial business activity-Selected A67 Foreign transactions in securities measures A68 Marketable U.S. Treasury bonds and A47 Labor force, employment, and unemployment notes—Foreign transactions A48 Output, capacity, and capacity utilization A49 Industrial production—Indexes and gross value A51 Housing and construction A52 Consumer and producer prices INTEREST AND EXCHANGE RATES A53 Gross national product and income A69 Discount rates of foreign central banks A54 Personal income and saving A69 Foreign short-term interest rates A70 Foreign exchange rates International Statistics A71 Guide to Tabular Presentation, Statistical Releases, and Special Tables SUMMARY STATISTICS A55 U.S. international transactions-Summary A56 U.S. foreign trade SPECIAL TABLE A56 U.S. reserve assets A56 Foreign official assets held at Federal Reserve All Assets and liabilities of commercial banks, 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 1990 1990 MMoonneettaarryy aanndd ccrreeddiitt aaggggrreeggaatteess Q1 Q2 Q3 Q4 Aug. Sept. Oct. Nov.' Dec. Reserves of depository institutions2 1 Total 2.4 -1.4 -1.4 1.7 8.6 6.7 -9.4 3.1 15.6 2 Required 2.5 -.9 -1.5 -.2 8.6 6.0 -8.3 1.1 .9 3 Nonborrowed -3.9 -1.0 2.0 4.8 5.2 13.0 -5.2 6.8 13.8 4 Monetary base3 8.5 7.0 8.8 8.8 13.1 14.6 6.9 4.4 7.1 Concepts of money, liquid assets, and debt4 5 Ml 4.8 3.5 4.1 3.4 10.2 9.3' -3.1 3.7 4.2 6 M2 6.4 3.(K 3.0r 2.2 6.4 5.2' .6' -.4 2.0 7 M3 2.9 l.C 1.6' .5 4.6 .8 -.5' -.3 .6 8 L 2.7 # 2.3' n.a. 2.7' 6.1' -1.1' 2.1 n.a. 9 Debt 6.1 6.9 7.4 6.2 8.6 6.7 4.8' 6.7 n.a. Nontransaction components 10 lnM2y.... 6.9 22..99rr 2.6' 1.8 5.1' 3.8' 1.8' -1.8 1.3 11 In M3 only6 -10.4 -7.2 -4.3 -6.6 -2.6 -17.8' -5.4r .6 -5.9 Time and savings deposits Commercial banks 12 Savings 9.5 5.1 3.9 4.3 1.2 4.9 7.9 -.6 4.9 13 MMDAs 9.1 10.6 9.4 3.1 12.0 4.5 1.3 1.3 1.0 14 Small-denomination time' . 7.8 12.0 15.3 12.2 6.5 8.2 20.4 3.1 18.0 15 Large-denomination time8,9 -1.1 -2.7 -.8 -8.1 -10.2 -13.9 -7.7 -2.2 -7.7 Thrift institutions 16 Savings 1.3 .5 -2.2' -8.2 -.5' -7.1' -13.7 -5.0 -8.9 17 MMDAs 5.7 2.6 -10.4 -5.1 -5.5 1.8 -10.1 .9 -15.7 18 Small-denomination time' -3.3 -7.1 -12.6' -8.4 -2.7' -5.4' -15.C -2.3 -12.9 19 Large-denomination time8 -24.7 -30.2 -31.3 -34.4 -29.3 -26.3 -37.4 -39.6 -46.1 Money market mutual funds 20 General purpose and broker-dealer 19.8 -.6' 11.6' 11.6 29.5' 16.6' 9.6' -1.1 14.8 21 Institution-only 10.2 11.7 21.9 32.3 56.2 22.1 38.2 3.0 63.9 Debt components* 22 6.8 9.7 14.3 11.6 18.6 11.1 6.2 16.2 n.a. 23 Nonfederal 6.0 6.1 5.3 4.6 5.5 5.3 4.3' 3.7 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 Financial Statistics • March 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 Oct. Nov. Dec. Nov. 14 Nov. 21 Nov. 28 Dec. 5 Dec. 12 Dec. 19 Dec. 26 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit 284,920 288,202 291,223 287,417 287,829 288,500 291,863 289,049 286,446 291,339 U.S. government securities1, 2 2 Bought outright-system account 234,588 238,788 239,499 238,618 238,323 238,368 241,823 241,660 239,302 238,901 3 Held under repurchase agreements ... 1,050 2,405 3,144 784 3,719 3,799 2,381 648 0 3,587 Federal agency obligations7 4 Bought outright 6,366 6,343 6,342 6,343 6,343 6,343 6,342 6,342 6,342 6,342 5 Held under repurchase agreements ... 284 163 121 121 146 232 341 3 0 9 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions2 7 Adjustment credit 62 43 212 86 7 51 15 23 52 754 8 Seasonal credit 331 163 78 177 147 133 97 76 81 76 9 Extended credit 18 25 23 25 24 25 25 24 22 22 10 Float 704 482 1,727 502 365 328 1,380 4% 606 1,267 11 Other Federal Reserve assets 41,517 39,791 40,077 40,762 38,757 39,221 39,458 39,777 40,041 40,381 12 Gold stock 11,061 11,060 11,058 11,060 11,059 11,059 11,059 11,058 11,058 11,058 13 Special drawing rights certificate account . 8,566 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 14 Treasury currency outstanding 20,254 20,321 20,368 20,314 20,325 20,337 20,348 20,358 20,368 20,378 ABSORBING RESERVE FUNDS 15 Currency in circulation 274,662 278,216 283,000 277,697 278,922 280,094 279,855 281,153 282,470 284,928 16 Treasury cash holdings 529 552 552 551 556 555 548 551 553 553 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 5,544 5,543 5,809 5,471 5,375 4,894 5,651 4,148 5,406 6,810 18 Foreign 250 250 251 313 229 213 245 230 234 236 19 Service-related balances and adjustments 2,024 1,948 2,078 1,884 1,929 1,960 1,935 2,007 2,202 1,983 20 Other 309 240 226 227 254 238 222 224 246 201 21 Other Federal Reserve liabilities and capital 9,375 9,380 9,170 9,103 9,014 9,228 9,488 9,412 8,947 9,093 22 Reserve balances with Federal Reserve Banks3 32,108 33,472 31,582 33,562 32,952 32,732 35,345 32,759 27,833 28,990 End-of-month figures Wednesday figures 1990 1990 Oct. Nov. Dec. Nov. 14 Nov. 21 Nov. 28 Dec. 5 Dec. 12 Dec. 19 Dec. 26 SUPPLYING RESERVE FUNDS 23 Reserve Bank credit 288,586 291,580 301,882 293,685 286,528 290,979 291,075 292,786 288,414 294,198 U.S. government securities1, 2 24 Bought outright-system account 237,763 242,633 235,090 238,423 238,258 238,849 241,340 240,830 240,854 237,937 25 Held under repurchase agreements ... 0 2,352 17,013 5,490 2,519 5,167 2,006 4,537 0 3,632 Federal agency obligations7 26 Bought outright 6,343 6,342 6,342 6,343 6,343 6,342 6,342 6,342 6,342 6,342 27 Held under repurchase agreements ... 0 270 1,341 846 91 453 376 21 0 10 28 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 29 Adjustment credit 297 97 112 407 8 29 19 107 39 4,880 30 Seasonal credit 262 7 55 163 138 128 87 81 79 74 31 Extended credit 33 26 23 28 22 26 24 25 20 25 32 Float 918 486 2,222 1,084 215 433 1,298 825 1,071 694 33 Other Federal Reserve assets 42,972 39,367 39,685 40,902 38,934 39,551 39,582 40,018 40,008 40,605 34 Gold stock 11,060 11,059 11,058 11,059 11,059 11,059 11,058 11,058 11,058 11,058 35 Special drawing rights certificate account . 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 36 Treasury currency outstanding 20,279 20,348 20,388 20,314 20,325 20,337 20,348 20,358 20,368 20,378 ABSORBING RESERVE FUNDS 37 Currency in circulation 275,043 279,507 286,949 278,525 279,991 280,137 280,461 281,934 283,471 286,167 38 Treasury cash holdings 544 552 561 556 555 552 544 552 554 553 Deposits, other than reserve balances, with Federal Reserve Banks 39 Treasury 7,607 5,495 8,960 5,334 3,272 4,742 5,879 4,515 6,656 11,375 40 Foreign 297 264 369 198 215 242 217 256 246 180 41 Service-related balances and adjustments 2,039 1,935 2,253 1,884 1,929 1,960 1,934 2,007 2,202 1,983 42 Other 1,777 213 242 234 210 229 214 227 324 240 43 Other Federal Reserve liabilities and capital 9,995 9,515 8,147 8,818 8,832 9,082 9,276 8,910 8,610 8,826 44 Reserve balances with Federal Reserve Banks 32,642 35,525 35,866 39,526 32,925 35,448 33,976 35,819 27,796 26,330 1. Includes securities loaned—fully guaranteed by U.S. government securities 3. Excludes required clearing balances and adjustments to compensate for pledged with Federal Reserve Banks—and excludes any securities sold and float. scheduled to be bought back under matched sale-purchase transactions. NOTE. For amounts of currency and coin held as reserves, see table 1.12. 2. Beginning with the May 1990 Bulletin, this table has been revised to Components may not add to totals because of rounding. correspond with the H.4.1 statistical release. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A5 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Monthly averages9 RReesseerrvvee ccllaassssiiffiiccaattiioonn 1988 1989 1990 1990 Dec. Dec. Dec. June July Aug. Sept. Oct. Nov/ Dec. 1 Reserve balances with Reserve Banks2 37,837 35,436 30,252 33,878 32,946 32,448 33,303 32,127 33,382 30,252 2 Total vault cash3 28,204 29,812 31,776 29,632 30,457 30,843 30,622 31,515' 31,085 31,776 3 Applied vault cash 25,909 27,374 28,884 27,318 27,9% 28,280 28,149 28,925 28,663 28,884 4 Surplus vault cash 2,295 2,439 2,892 2,314 2,460 2,563 2,473 2.59C 2,422 2,892 5 Total reserves6 63,746 62,810 59,136 61,197 60,943 60,728 61,452 61,052 62,045 59,136 6 Required reserves i 62,699 61,888 57,455 60,423 60,081 59,860 60,544 60,206 61,099 57,455 7 Excess reserve balances at Reserve Banks' 1,047 922 1,680 774 862 868 909 847 947 1,680 8 Total borrowings at Reserve Banks 1,716 265 326 881 757 927 624 410 230 326 9 Seasonal borrowings at Reserve Banks 130 84 76 311 389 430 418 335 162 76 10 Extended credit at Reserve Banks8 1,244 20 23 346 280 127 6 18 24 23 Biweekly averages of daily figures for weeks ending 1990 1991 Sept. 5 Sept. 19 Oct. 3 Oct. 17 Oct. 31 Nov. 14 Nov. 28' Dec. 12' Dec. 26 Jan. 9 11 Reserve balances with Reserve Banks 32,477 34,316 32,389 32,833 31,365 33,821 32,848 34,046 28,413 26,291 12 Total vault cash3 30,229 30,291 31,222 31,673 31,421' 30,652' 31,632 30,293 32,689 32,782 13 Applied vault cash* 27,720 27,976 28,565 29,171 28,756 28,293 29,125 28,027 29,621 28,878 14 Surplus vault cash 2,509 2,315 2,657 2,502 2,665' 2,36C 2,508 2,266 3,068 3,905 15 Total reserves6 60,197 62,292 60,954 62,004 60,121 62,114 61,972 62,073 58,034 55,168 1 1 7 6 R Ex eq c u es ir s e d re s re e s rv e e rv b es a lances at Reserve Banks7i 59,3 8 0 9 4 3 61,5 7 4 4 6 6 59 1 , , 8 1 3 2 2 2 61,0 9 2 8 1 4 59,4 6 7 5 1 0 61,1 9 3 8 2 2 61,0 9 0 6 6 6 61,5 5 1 6 3 1 56 1 , , 1 9 1 2 3 2 5 3 1 , , 6 4 9 7 1 7 18 Total borrowings at Reserve Banks 638 705 516 401 397 282 193 130 504 295 19 Seasonal borrowings at Reserve Banks 430 410 424 345 307 195 140 87 79 41 20 Extended credit at Reserve Banks 8 5 9 13 26 25 25 25 22 22 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 Domestic Nonfinancial Statistics • March 1991 1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Banks1 Averages of daily figures, in millions of dollars 1990, week ending Monday2 Maturity and source Sept. 17 Sept. 24 Oct. 1 Oct. 8 Oct. 15 Oct. 22 Oct. 29 Nov. 5 Nov. 12 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 91,246 79,956 81,974 91,217 86,843 78,536 75,748 82,906 2 For all other maturities 18,103 17,796 16,572 15,376 17,561 18,933 20,036 19,286 From other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies 3 For one day or under continuing contract 38,249 37,308 31,985 36,441 37,361 34,698 34,674 38,560 4 For all other maturities 17,425 16,585 16,960 19,050 19,576 19,784 20,107 20,656 Repurchase agreements on U.S. government and federal agency securities in immediately available funds Brokers and nonbank dealers in securities 5 For one day or under continuing contract 14,524 16,336 15,586 19,495 18,854 16,492 16,691 15,620 6 For all other maturities 23,224 21,774 19,072 20,207 21,599 22,747 23,144 22,952 All other customers 7 For one day or under continuing contract 32,726 31,776 29,621 31,139 32,559 31,762 30,612 30,586 8 For all other maturities 13,415 12,863 13,021 12,308 12,002 12,526 13,302 13,818 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 51,336 46,590 49,163 50,017 47,434 45,415 47,006 49,786 10 To all other specified customers3 17,243 17,230 14,620 15,420 15,690 16,937 16,645 16,663 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 ccrreeddiitt11 First 30 days of borrowing After 30 days of borrowing3 BBBaaannnkkk On Effective Previous On Effective Previous On Effective Previous Effective date 1/29/91 date rate 1/29/91 date rate 1/29/91 date rate Boston 6(4 12/19/90 7 6 Vi 12/19/90 7 7.55 1/24/91 7.65 1/10/91 New York 12/19/90 12/19/90 1/24/91 1/10/91 Philadelphia 12/19/90 12/19/90 1/24/91 1/10/91 Cleveland 12/19/90 12/19/90 1/24/91 1/10/91 Richmond 12/19/90 12/19/90 1/24/91 1/10/91 Atlanta 12/19/90 12/19/90 1/24/91 1/10/91 Chicago 12/19/90 12/19/90 1/24/91 1/10/91 St. Louis 12/19/90 12/19/90 1/24/91 1/10/91 Minneapolis 12/19/90 12/19/90 1/24/91 1/10/91 Kansas City 12/19/90 12/19/90 1/24/91 1/10/91 Dallas 12/19/90 12/19/90 1/24/91 1/10/91 San Francisco ... 6Vi 12/19/90 7 6 Vi 12/19/90 7 7.55 1/24/91 7.65 1/10/91 Range of rates for adjustment credit in recent years4 Range (or F.R. Range (or F.R. Range (or F.R. Effective date A le l v l e F l) . — R. B o a f n k Effective date A le l v l e F l) . — R. B o an f k Effective date A le l v l e F l) . — R. B o an f k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1977. 6 6 1980—July 28 10-11 10 11998844——AApprr.. 9 SVl-9 9 1978--Jan. 9 6-6Vl 6 Vl 29 10 10 13 9 9 20 6Vi 6 Vi Sept. 26 11 11 Nov. 21 8V4-9 8H2 May 11 6Vi-7 7 Nov. 17 12 12 26 m m 12 1 7 Dec. 5 12-13 13 Dec. 24 8 8 July 1 3 0 7 7 - V 7 W 4 I 7V Vi. 4 1981—May 5 13-14 14 11998855——MMaayy 20 7V4-8 IVi Aug. 21 73/4 73/4 8 14 14 24 IVi IVi Sept. 22 8 8 Nov. 2 13-14 13 Oct. lb s-m 8Vi 6 13 13 1986—Mar. 7 1-lVi 7 20 m 8V4 Dec. 4 12 12 10 1 7 Nov. 1 ZV2-9V1 9 Vi Apr. 21 6V1-1 6 Vi 3 9 Yi 9Vi 1982—July 20 1114-12 1 \Vi July 11 6 6 23 11 Vi 11 Vl AAuugg.. 21 5Vl-6 5 Vi 1979--J A u u lv g . 2 1 0 7 10- 1 1 0 0V i 1 1 0 0 Vi Aug. 2 3 11— 1 1 1 1 Vi 1 1 1 1 "V' 5 Vi 5 Vi 20 10V5 10 Vi 16 10 Vi 10W 11998877——SSeepptt.. 5V4-6 6 Sept. 19 I0V5-11 11 27 10-1 OVl 10 11 6 6 21 11 11 30 10 10 Oct. 8 11-12 12 Oct. 12 9Vi—10 9 Vl 11998888——AAuugg.. 9 6-6 Vl 6 Vi 10 12 12 13 9 Vi 9 Vl 11 6 Vl 6 Vi Nov. 22 9-9 Vl 9 -Feb. 15 12-13 13 26 9 9 1989—Feb. 24 6V1-I 1 19 13 13 Dec. 14 SVi-9 9 27 1 1 May 29 12-13 13 15 SVi-9 8 Vl 30 12 12 17 8 Vl 8 Vi 1990—Dec. 19 6V2 6V2 June 13 11-12 11 16 11 11 In effect Jan. 29, 1991 6 Vl 6 Vi 1. Adjustment credit is available on a short-term basis to help depository in no case will the rate charged be less than the basic discount rate plus 50 basis institutions meet temporary needs for funds that cannot be met through reason- points. The flexible rate is reestablished on the first business day of each able alternative sources. After May 19, 1986, the highest rate established for loans two-week reserve maintenance period. At the discretion of the Federal Reserve to depository institutions may be charged on adjustment credit loans of unusual Bank, the time period for which the basic discount rate is applied may be size that result from a major operating problem at the borrower's facility. shortened. Seasonal credit is available to help smaller depository institutions meet regular, 4. For earlier data, see the following publications of the Board of Governors: seasonal needs for funds that cannot be met through special industry lenders and Banking and Monetary Statistics, 1914-1941, and 1941-1970; Annual Statistical that arise from a combination of expected patterns of movement in their deposits Digest, 1970-1979. and loans. A temporary simplified seasonal program was established on Mar. 8, In 1980 and 1981, the Federal Reserve applied a surcharge to short-term 1985, and the interest rate was a fixed rate Vi percent above the rate on adjustment adjustment credit borrowings by institutions with deposits of $500 million or more credit. The program was reestablished for 1986 and 1987 but was not renewed for that had borrowed in successive weeks or in more than four weeks in a calendar 1988. quarter. A 3 percent surcharge was in effect from Mar. 17, 1980 through May 7, 2. Extended credit is available to depository institutions, when similar assist- 1980. There was no surcharge until Nov. 17,1980, when a 2 percent surcharge was ance is not reasonably available from other sources, when exceptional circum- adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and stances or practices involve only a particular institution or when an institution is to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective experiencing difficulties adjusting to changing market conditions over a longer Sept. 22, 1981, and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981 the period of time. formula for applying the surcharge was changed from a calendar quarter to a 3. For extended-credit loans outstanding more than 30 days, a flexible rate moving 13-week period. The surcharge was eliminated on Nov. 17, 1981. somewhat above rates on market sources of funds ordinarily will be charged, but Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Nonfinancial Statistics • March 1991 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Percent of deposits Depository institution requirements after implementation of the Monetary Control Act TTyyppee ooff ddeeppoossiitt,, aanndd ddeeppoossiitt iinntteerrvvaall22 Percent of deposits Effective date Net transaction accounts3,4 $0 million-$41.1 million 33333 1111122222/////1111188888/////9999900000 1111122222 1111122222/////1111188888/////9999900000 00000 1111122222/////2222277777/////9999900000 00000 1111122222/////2222277777/////9999900000 1. Required reserves must be held in the form of deposits with Federal Reserve three per month for the purpose of making payments to third persons or others. Banks or vault cash. Nonmember institutions may maintain reserve balances with However, MMDAs and similar accounts subject to the rules that permit no more a Federal Reserve Bank indirectly on a pass-through basis with certain approved than six preauthorized, automatic, or other transfers per month, of which no more institutions. For previous reserve requirements, see earlier editions of the Annual than three can be checks, are not transaction accounts (such accounts are savings Report or the Federal Reserve Bulletin. Under provisions of the Monetary deposits). Control Act, depository institutions include commercial banks, mutual savings 4. The Monetary Control Act of 1980 requires that the amount of transaction banks, savings and loan associations, credit unions, agencies and branches of accounts against which the 3 percent reserve requirement applies be modified foreign banks, and Edge corporations. annually by 80 percent of the percentage change in transaction accounts held by 2. The Garn-St Germain Depository Institutions Act of 1982 (Public Law all depository institutions, determined as of June 30 each year. Effective Dec. 18, 97-320) requires that $2 million of reservable liabilities of each depository 1990 for institutions reporting quarterly and Dec. 25, 1990 for institutions institution be subject to a zero percent reserve requirement. The Board is to adjust reporting weekly, the amount was increased from $40.4 million to $41.1 million. the amount of reservable liabilities subject to this zero percent reserve require- 5. The reserve requirements on nonpersonal time deposits with an original ment each year for the succeeding calendar year by 80 percent of the percentage maturity of less than 1-1/2 years were reduced from 3 percent to 1-1/2 percent on increase in the total reservable liabilities of all depository institutions, measured the maintenance period that began December 13, 1990, and to zero for the on an annual basis as of June 30. No corresponding adjustment is to be made in maintenance period that began December 27, 1990, for institutions that report the event of a decrease. On Dec. 20, 1988, the exemption was raised from $3.2 weekly. The reserve requirement on nonpersonal time deposits with an original million to $3.4 million. In determining the reserve requirements of depository maturity of 1-1/2 years or more has been zero since October 6, 1983. institutions, the exemption shall apply in the following order: (1) net NOW 6. For institutions that report quarterly, the reserves on nonpersonal time accounts (NOW accounts less allowable deductions); and (2) net other transaction deposits with an original maturity of less than 1-1/2 years were reduced from 3 accounts. The exemption applies only to accounts that would be subject to a 3 percent to zero on January 17, 1991. percent reserve requirement. 7. The reserve requirements on Euroccurrency liabilities were reduced from 3 3. Transaction accounts include all deposits on which the account holder is percent to zero in the same manner and on the same dates as were the reserves on permitted to make withdrawals by negotiable or transferable instruments, pay- nonpersonal time deposits with an original maturity of less than 1-1/2 years (see ment orders of withdrawal, and telephone and preauthorized transfers in excess of notes 5 and 6). 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 Type of transaction 1988 May June July Aug. Sept. Oct. Nov U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 2 1 G G r r o o s s s s s p a u l r e c s hases 1 6 8 , , 0 9 5 8 1 3 8,2 5 2 8 3 7 1 1 4 2 , , 2 8 8 1 4 8 3,3650 1,7320 2870 4,26 6 4 8 631 0 93 0 3 4 3 R Ex ed ch em an p g t e i ons 23 9 9 , , 0 74 2 0 9 24 2 1 , ,8 2 7 0 6 0 23 1 1 2 , , 2 7 1 3 1 0 22,8940 16,2790 16,1590 21,912 0 19,041 0 19,271 0 5 6 Ot G G he r r r o o s s s s s w p s it a u h l r i e c n s h 1 a s y es e ar 3,6 3 5 0 9 0 2,1760 3270 0 0 500 0 0 0 0 0 0 0 0 7 8 9 M R Ex e a d c t h u em r a i n t p y g t e i s o h n i s f t -2 2 0 1 , , 3 5 8 0 7 8 4 0 -2 2 4 3 , , 5 8 8 5 8 4 0 -2 2 5 8 , , 7 8 5 8 4 0 3 8 0 -2 4 , , 7 3 7 8 1 7 0 1,3140 0 -3 1 , , 5 3 7 2 7 1 0 -4 3 , , 5 2 5 3 0 5 0 1,010 0 0 1,934 0 0 1 1 0 1 1 t G G o r r 5 o o s s y s s e p s a a u r l s r e c s h ases 10, 4 23 5 1 2 5,4 8 8 0 5 0 1, 4 4 9 3 0 6 0 0 0 0 0 0 0 0 0 0 0 0 1 1 2 3 M Ex a c tu h r a i n ty g e s hift -1 1 7 8 , , 9 9 7 3 5 8 -1 2 7 2 , , 7 5 2 1 0 5 -2 2 5 3 , , 5 2 3 5 4 0 -3 2 , , 6 5 0 2 7 1 -1,3140 -1 3 , , 2 5 3 7 4 7 -2 4 , , 1 2 8 0 8 0 -1,010 0 -1,677 0 1 1 4 5 5 t G G o r r 1 o o 0 s s s s y p s e a u a l r r e s c s h ases 2,4410 1,5 1 7 7 9 5 28 2 7 9 0 0 0 0 0 0 1 1 7 6 M Ex a c t h u a ri n ty g e s hift -3,5 9 2 5 9 0 -5 1 , , 9 7 4 9 6 7 -2 1 , , 2 9 3 3 1 4 -5300 -697 0 -256 0 2 1 1 0 8 9 Ov G M G er r r a o o t 1 s u s s 0 s r i s p t y y a u e l a r e s c r s h s h i f a t s es 1,8580 0 - 1 1 ,3 8 9 8 08 -1,0 2 8 8 6 0 4 -250 0 0 -350 0 0 21 Exchange 500 275 600 250 350 All maturities 2 2 2 2 3 4 G G Re r ro o d s s e s s m p s p a u t l i r e o c s n h s a ses 3 6 9 7 , , , 8 0 1 0 9 7 3 9 0 1 2 8 1 , , , 2 8 5 0 6 6 0 2 3 1 1 1 6 3 3 , , , 6 3 2 1 3 3 7 7 0 3,365 0 0 1,7820 0 287 0 0 4,26 6 4 8 0 631 0 0 933 0 0 Matched transactions 25 Gross sales 950,923 1,168,484 1,323,480 121,596 107,896 95,144 113,647 120,036 127,265 26 Gross purchases 950,935 1,168,142 1,326,542 121,218 110,042 95,787 110,635 120,280 129,722 Repurchase agreements2 27 Gross purchases 314,621 152,613 129,518 3,959 11,242 13,106 26,700 31,996 19,844 28 Gross sales 324,666 151,497 132,688 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 2,987 3,928 2,590 4,121 -2,060 3,390 FEDERAL AGENCY OBLIGATIONS 30 G O r u o tr s i s g h p t urch tr a a s n e s s a ctions 0 0 0 0 00 31 Gross sales 32 Redemptions 276 587 442 Repurchase agreements2 33 Gross purchases 80,353 57,259 38,835 2,314 3,221 4,697 7,130 7,394 5,913 34 Gross sales 81,350 56,471 40,411 2,314 3,221 4,137 5,944 8,580 5,913 35 Net change in federal agency obligations . -1,274 198 -2,018 0 1,149 -1,186 -34 36 Total net change in System Open Market Account 9,961 16,070 -12,073 2,987 3,928 3,117 5,270 -3,247 3,356 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 • March 1991 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 1990 1990 Nov. 28 Dec. 5 Dec. 12 Dec. 19 Dec. 26 Oct. 31 Nov. 30 Dec. 31 Consolidated condition statement ASSETS 1 Gold certificate account 11,059 11,058 11,058 11,058 11,058 11,060 11,059 11,058 2 Special drawing rights certificate account 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 3 533 531 549 559 546 551 532 535 Loans 4 To depository institutions 183 130 212 139 4,979 591 131 190 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 7 Bought outright 6,342 6,342 6,342 6,342 6,342 6,343 6,342 6,342 8 Held under repurchase agreements 453 376 21 0 10 0 270 1,341 U.S. Treasury securities Bought outright 9 Bills 116,204 118,471 117,961 118,285 115,367 115,218 119,763 112,520 10 Notes 91,482 91,707 91,707 91,407 91,407 91,582 91,707 91,407 11 Bonds 31,163 31,163 31,163 31,163 31,163 30,963 31,163 31,163 12 Total bought outright 238,849 241,340 240,830 240,854 237,937 237,763 242,633 235,090 13 Held under repurchase agreements 5,167 2,006 4,537 0 3,632 0 2,352 17,013 14 Total U.S. Treasury securities 244,016 243,346 245,367 240,854 241,569 237,763 244,985 252,103 15 Total loans and securities 250,994 250,195 251,943 247,335 252,899 244,697 251,728 259,975 16 Items in process of collection 5,565 7,084 6,354 7,101 4,043 5,992 6,235 6,106 17 Bank premises 860 861 865 866 870 853 862 872 Other assets 18 Denominated in foreign currencies 33,360 33,580 33,620 33,701 33,802 35,669 33,579 32,633 19 All other3 5,160 5,119 5,493 5,253 5,954 6,227 4,859 6,376 20 Total assets 317,550 318,446 319,900 315,891 319,191 315,067 318,871 327,573 LIABILITIES 21 Federal Reserve notes 260,885 261,187 262,677 264,216 266,887 255,860 260,243 267,657 Deposits 22 To depository institutions 37,570 35,715 37,845 30,154 28,639 34,546 37,359 38,658 23 U.S. Treasury—General account 4,742 5,879 4,515 6,656 11,375 7,607 5,495 8,960 24 Foreign—Official accounts 242 217 256 246 180 297 264 369 25 Other 229 214 227 324 240 1,777 213 242 26 Total deposits 42,784 42,025 42,843 37,380 40,433 44,226 43,331 48,228 27 Deferred credit items 4,799 5,958 5,469 5,686 3,044 6,481 5,783 3,540 28 Other liabilities and accrued dividends 3,850 3,679 3,657 3,291 3,575 3,569 3,807 3,301 29 Total liabilities 312,318 312,849 314,647 310,573 313,939 308,641 313,163 322,727 CAPITAL ACCOUNTS 30 Capital paid in 2,407 2,409 2,416 2,418 2,423 2,402 2,404 2,423 31 Surplus 2,243 2,243 2,243 2,243 2,243 2,243 2,243 2,423 32 Other capital accounts 582 945 594 657 586 1,781 1,062 0 33 Total liabilities and capital accounts 317,550 318,446 319,900 315,891 319,191 315,067 318,871 327,573 34 MEMO: Marketable U.S. Treasury securities held in custody for foreign and international accounts 244,045 249,625 248,006 246,384 246,713 240,993 246,728 247,521 Federal Reserve note statement 35 Federal Reserve notes outstanding issued to bank 304,187 305,939 306,737 306,481 305,635 300,234 304,591 304,829 36 LESS: Held by bank 43,302 44,752 44,060 42,265 38,748 44,375 44,349 37,172 37 Federal Reserve notes, net 260,885 261,187 262,677 264,216 266,887 255,860 260,243 267,657 Collateral held against notes net: 38 Gold certificate account 11,059 11,058 11,058 11,058 11,058 11,060 11,059 11,058 39 Special drawing rights certificate account 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 40 Other eligible assets 0 0 0 0 0 0 0 0 41 U.S. Treasury and agency securities 239,808 240,111 241,601 243,139 245,811 234,782 239,166 246,581 42 Total collateral 260,885 261,187 262,677 264,216 266,887 255,860 260,243 267,657 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 Type and maturity groupings 1990 1990 Nov. 28 Dec. 5 Dec. 12 Dec. 19 Dec. 26 Oct. 31 Nov. 30 3 2 1 Lo W 1 a 6 n i t s d h — a in y T s 1 o t 5 t o a d l 9 a 0 y d s ays 1 1 8 7 0 8 3 5 1 7 5 3 4 0 6 0 2 1 1 5 5 2 0 8 4 1 1 3 3 4 0 9 5 4 4 , , 9 9 7 7 9 9 0 1 4 3 2 5 7 9 0 1 9 1 8 5 3 0 0 0 1 4 91 days to 1 year 0 0 0 0 0 0 0 5 Acceptances—Total 0 0 0 0 0 0 0 6 Within 15 days 0 0 0 0 0 0 0 7 16 days to 90 days 0 0 0 0 0 0 0 8 91 days to 1 year 1 1 1 1 1 1 9 3 4 5 0 1 2 U. O W O 9 O S 1 1 6 . v v v i t e T d e e d h r r r a a r i e y n y 5 1 1 a s s 0 y y s 1 t t u y e 5 e o o r a a e d y r 9 r a 1 s a 0 r t y y s s o t d e s e o 1 a a 5 c r y 1 u y s 0 r e i y t a i e r e s a s r — s Total.. 2 5 7 6 4 2 1 1 7 4 0 4 4 3 3 , , , , , , , 0 6 6 3 7 4 2 1 3 2 4 5 3 2 5 4 5 9 0 6 1 2 5 7 5 4 2 1 1 9 7 6 3 4 1 3 . , , , , . , 5 2 3 9 7 5 2 7 6 4 7 7 3 2 2 7 6 8 1 6 1 2 7 4 5 5 2 1 1 7 5 9 7 4 3 3 , , , , , , , 1 3 5 6 7 0 2 6 7 7 2 3 3 2 7 8 2 3 7 6 1 2 5 7 5 4 2 1 1 4 9 7 0 4 1 3 , , , , , , , 1 3 8 4 9 7 1 5 8 7 5 9 3 2 4 2 2 2 0 6 1 24 5 7 5 2 1 1 1 6 9 5 4 1 3 , , , , , , , 5 8 3 9 7 4 1 6 8 7 6 3 8 2 9 2 2 8 6 9 1 2 5 7 5 3 2 1 1 9 1 4 7 4 3 3 , , , , , , , 4 8 7 9 5 7 1 8 9 6 7 4 3 2 4 9 3 0 7 6 6 2 6 7 5 4 2 1 9 3 7 3 2 4 3 , , , , , , , 8 5 2 9 6 7 2 4 7 8 3 7 2 3 1 2 8 3 4 1 6 2 2 2 1 1 1 1 0 1 2 6 7 8 9 Fe O O O W 9 d 1 1 6 e v v v i r e t e e d d a h r r r a a l i y n y 5 1 1 a s s 0 g y y 1 t e t y e e 5 o o n a a e d c r r 9 a 1 y s a 0 r t y s y o t o d e o s b 5 a ' a r l y 1 y i s 0 g e a y a t r e i s o a n rs s —Total 6 2 1 1 , , , , 7 5 7 6 6 0 1 9 9 1 0 6 2 8 5 5 4 4 5 8 8 6 2 1 1 , , , , 7 6 9 6 3 0 1 1 0 1 0 2 7 8 8 3 8 7 5 6 8 6 2 1 1 , , , , 3 5 8 6 0 1 6 7 6 6 4 2 8 3 3 6 2 8 5 8 6 2 1 1 , , , , 3 5 2 6 6 0 1 4 7 4 4 6 2 8 2 3 5 8 2 5 8 6 2 1 1 , , , , 5 3 2 7 6 0 1 5 5 1 3 3 2 8 5 2 0 7 9 2 8 6 2 1 1 , , , , 3 5 7 7 1 1 4 1 9 0 1 2 8 3 6 9 5 0 5 8 6 2 1 1 , , , , 3 5 2 6 6 0 1 4 9 6 6 0 2 8 2 5 1 8 4 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 onfinancialS tatistics • March 1991 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1990 1987 1988 1989 1990 IItteemm Dec. Dec. Dec. Dec. May June July Aug. Sept. Oct. Nov/ Dec. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves3 58.59 60.59 60.03 60.54 59.78 59.73 59.32 59.75 60.08 59.61 59.76 60.54 2 Nonborrowed reserves4 ^ 57.82 58.88 59.77 60.22 58.45 58.85 58.56 58.82 59.46 59.20 59.53 60.22 3 Nonborrowed reserves plus extended credit 58.30 60.12 59.79 60.24 59.32 59.20 58.84 58.95 59.46 59.22 59.56 60.24 4 Required reserves 57.55 59.55 59.11 58.86 58.82 58.96 58.46 58.88 59.17 58.76 58.82 58.86 5 Monetary base 258.06 275.24 284.95 309.50 294.40 296.28 297.86 301.12 304.78 306.55 307.68 309.50 ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 Not seasonally adjusted 6 Total reserves7 60.07 62.22 61.67 62.20 58.74 59.61 59.47 59.21 59.81 59.24 60.02 62.20 7 Nonborrowed reserves ^ 59.30 60.50 61.40 61.87 57.41 58.73 58.71 58.29 59.19 58.83 59.79 61.87 8 Nonborrowed reserves plus extended credit 59.78 61.75 61.42 61.90 58.28 59.07 58.99 58.41 59.20 58.85 59.82 61.90 9 Required reserves 59.03 61.17 60.75 60.52 57.78 58.84 58.61 58.34 58.90 58.40 59.08 60.52 10 Monetary base 262.00 279.54 289.45 314.04 293.52 297.37 299.90 301.46 303.56 305.00 308.71 314.04 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS10 11 Total reserves11 62.14 63.75 62.81 59.14 60.23 61.20 60.94 60.73 61.45 61.05 62.05 59.14 12 Nonborrowed reserves ^ 61.36 62.03 62.54 58.81 58.90 60.32 60.19 59.80 60.83 60.64 61.82 58.81 13 Nonborrowed reserves plus extended credit 61.85 63.27 62.56 58.83 59.77 60.66 60.47 59.93 60.83 60.66 61.84 58.83 14 Required reserves 61.09 62.70 61.89 57.46 59.27 60.42 60.08 59.86 60.54 60.21 61.10 57.46 15 Monetary base 266.06 283.00 292.55 313.71 297.03 300.99 303.39 304.99 307.21 308.85 312.69 313.71 16 Excess reserves13 1.05 1.05 .92 1.68 .96 .77 .86 .87 .91 .85 .95 1.68 17 Borrowings from the Federal Reserve .78 1.72 .27 .33 1.33 .88 .76 .93 .62 .41 .23 .33 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 MEASURES' Billions of dollars, averages of daily figures 1990 IItteemm22 DD 1199 ee 88 cc 77 .. DD 1199 ee 88 cc 88 .. DD 1199 ee 88 cc 99 .. DD 1199 ee 99 cc 00 .. Sept. Oct. Nov. Dec. Seasonally adjusted 1 Ml 750.4 787.5 794.8 825.5 822.2' 820.1' 822.6 825.5 2 M2 2,913.2 3,072.4 3,221.6 3,323.1 3,317.T 3,318.8' 3,317.6' 3,323.1 3 M3 3,678.7 3,918.3 4.044.3 4,092.7 4,093.5r 4,091.7' 4,090.9' 4,092.7 4 L 4,338.9 4,676.1 4,881.2 n.a. 4,951.8' 4,947.1' 4,955.6 n.a. 5 Debt 8,345.1 9,107.6 9.790.4 n.a. 10,313.6 10,354.7' 10,412.4 n.a. Ml components 6 Currency3 196.7 211.8 221.9 245.9 241.6' 244.0 244.7' 245.9 7 Travelers checks* 7.0 7.5 7.4 8.4 8.3 8.4 8.4 8.4 8 Demand deposits 287.0 287.0 279.7 277.5 279.7 276.8 277.2 277.5 9 Other checkable deposits6 259.7 281.3 285.7 293.8 292.7' 290.9 292.3' 293.8 Nontrqnsactions components 10 In M2 2,162.8 2,284.9 2,426.8 2,497.6 2,494.9' 2,498.7' 2,494.9' 2,497.6 11 In M3 only8 765.5 845.9 822.7' 769.5 776.4' 772.9' 773.3' 769.5 Time and Savings accounts Commercial banks 12 Savings deposits 178.3 192.0 188.5 198.6 196.6 197.9 197.8 198.6 13 Money market deposit accounts 356.4 350.2 351.5 377.1 376.0 376.4 376.8' 377.1 14 Small time deposits®. 388.1 447.5 528.6 595.2 575.1 584.9 586.4' 595.2 15 Large time deposits ' 326.9 368.2 401.5 386.0 391.7 389.2 388.5' 386.0 Thrift institutions 16 Savings deposits 236.6 235.9 220.5 214.3 219.3 216.8 215.9 214.3 17 Money market deposit accounts . 167.4 150.1 132.2 128.5 131.2 130.1 130.2 128.5 18 Small time deposits 529.7 583.5 613.7 563.3 577.7' 570.5' 569.4' 563.3 19 Large time deposits 161.9 172.9 156.8 112.6 125.0 121.1 117.1 112.6 Money market mutual funds 20 General purpose and broker-dealer, 222.0 240.9 312.4 344.5 337.9' 340.6' 340.3' 344.5 21 Institution-only 89.0 87.1 102.3 126.5 116.1 119.8 120.1 126.5 Debt components 22 Federal debt 1,957.9 2,114.2 2,268.1 n.a. 2,461.5 2,474.3 2,507.7 n.a. 23 Nonfederal debt 6,387.2 6,993.4 7,522.3 n.a. 7,852.1 7,880.4' 7,904.7 n.a. Not seasonally adjusted 24 Ml 766.4 804.5 812.1 843.2 818.1 816.7 825.1 843.2 25 M2 2.925.6 3,085.2 3,234.5 3,336.5 3,309.6' 3,315.4' 3,321.7' 3,336.5 26 M3 3.692.7 3,932.5 4,058.3 4,107.2 4,089.6' 4,091.0' 4,100.7' 4,107.2 27 L 4,355.2 4,692.9 4,898.9 n.a. 4,946.3' 4,946.7' 4,965.0 n.a. 28 Debt 8,329.1 9,093.2 9,775.9 n.a. 10,263.3 10,315.9' 10,382.9 n.a. Mi components 29 Currency3 199.3 214.8 225.3 249.4 240.8 242.6 245.6 249.4 30 Travelers checks* 6.5 6.9 6.9 7.8 8.8 8.4 8.0 7.8 31 Demand deposits5 298.6 298.9 291.6 289.4 277.9 277.6 280.0 289.4 32 Other checkable deposits6 262.0 283.8 288.4 296.6 290.6 288.0 291.5 296.6 Nontransactions components 33 In M2 ... 2,159.2 2,280.7 2,422.4 2,493.3 2,491.5' 2,498.7' 2,496.6' 2,493.3 34 In M3 only8 767.0 847.3 823.8 770.7 780.0' 775.6' 779.1' 770.7 Time and Savings accounts Commercial banks 35 Savings deposits 176.9 190.6 187.2 197.4 196.0 197.9 197.7 197.4 36 Money market deposit accounts 359.0 353.2 355.0 381.0 374.4 375.2 379.1 381.0 37 Small time deposits®. 387.3 446.0 526.4 592.7 575.6 584.4 584.9' 592.7 38 Large time deposits10' 11 325.8 366.9 399.8 384.4 393.0' 390.4 389.0' 384.4 Thrift institutions 39 Savings deposits 234.9 234.2 219.0 212.9 219.1' 217.7 215.8 212.9 40 Money market deposit accounts 167.5 150.6 132.8 129.3 131.2 130.3 130.7 129.3 41 Small time deposits 529.1 582.4 612.3 562.0 576.7' 570.6' 569.4' 562.0 42 Large time deposits 162.9 174.2 158.3 113.6 125.2 122.3 118.8 113.6 Money market mutual funds 43 General purpose and broker-dealer 221.5 240.5 312.2 344.3 337.0' 338.8' 341.3' 344.3 44 Institution-only 89.6 87.6 102.9 127.3 113.2 117.0 121.3 127.3 Repurchase agreements and Eurodollars 45 Overnight 83.2 83.3 77.4 73.7 81.5' 83.7' 77.6' 73.7 46 Term 197.1 227.7 178.0 159.1 164.0' 162.4' 164.0' 159.1 Debt components 47 Federal debt 1,955.6 2,111.8 2,265.9 n.a. 2,444.5 2,459.3 2,498.8 n.a. 48 Nonfederal debt 6,373.5 6,981.4 7,509.9 n.a. 7,818.8 7,856.6' 7,884.1 n.a. For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 DomesticN onfinancial Statistics • March 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 and overnight Eurodollars issued to U.S. and official institutions, less cash items in the process of collection and Federal residents by foreign branches of U.S. banks worldwide, 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 officii 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 May July Aug. Sept. Oct. DEBITS TO Seasonally adjusted Demand deposits3 1 Ail insured banks 217,116.2 226,888.4 272,793.1 273,186.2 301,578.2 301,589.9 309,441.0 287,546.5 294,431.1 2 Major New York City banks 104,4%.3 107,547.3 121,894.2 123,314.6 131,042.7 130,590.7 133,491.9 131,920.3 137,315.9 3 Other banks 112,619.8 119,341.2 150,898.9 149,871.6 170,535.5 170,999.2 175,949.1 155,626.2 157,115.2 4 ATS-NOW accounts4 2,402.7 2,757.7 3,501.8 4,165.6 4,004.2 4,163.7 4,478.9 3,763.3 4,229.5 5 Savings deposits 526.5 579.2 636.6 601.1 566.6 608.8 592.0 543.7 638.6 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 612.1 641.2 781.0 791.9 866.2 865.5 888.6 826.2 852.0 7 Major New York City banks 2,670.6 2,903.5 3,401.6 3,590.9 3,742.8 3,838.3 3,777.5 3,827.6 4,100.4 8 Other banks 357.0 376.8 481.5 482.5 544.6 543.8 562.3 496.3 503.4 9 ATS-NOW accounts4 13.8 14.7 18.3 20.5 19.5 20.5 21.9 18.3 20.6 10 Savings deposits5 3.1 3.1 3.5 3.2 2.9 3.1 3.1 2.8 3.3 Not seasonally adjusted Demand deposits3 11 All insured banks 217,125.1 227,010.7 271,957.3 282,747.7 302,181.4 302,826.4 321,168.8 263,881.4 304,854.0 12 Major New York City banks 104,518.8 107,565.0 122,241.8 125,532.4 130,332.7 130,100.1 137,460.3 121,343.4 142,664.0 13 Other banks 112,606.2 119,445.7 149,715.5 157,215.3 171,848.6 172,726.3 183,708.4 142,538.0 162,190.0 14 ATS-NOW accounts4 2,404.8 2,754.7 3,496.5 4,066.2 4,098.2 4,108.9 4,274.0 3,868.9 4,207.4 15 MMDA 1,954.2 2,430.1 2,790.6 3,016.4 2,992.1 3,033.8 3,171.1 2,786.5 3,138.8 16 Savings deposits 526.8 578.0 635.8 592.6 567.8 640.3 598.1 538.5 662.6 DEPOSIT TURNOVER Demand deposits3 17 All insured banks 612.3 641.7 779.0 834.7 866.5 864.8 938.3 760.6 887.5 18 Major New York City banks 2,674.9 2,901.4 3,415.4 3,796.3 3,797.6 3,777.5 4,109.2 3,607.3 4,376.5 19 Other banks 356.9 377.1 477.8 514.3 546.6 547.1 594.8 454.9 521.7 20 ATS-NOW accounts4 13.8 14.7 18.3 20.3 20.1 20.4 21.1 19.0 20.7 21 MMDA® 5.3 6.9 8.3 8.4 8.2 8.3 8.6 7.5 8.4 22 Savings deposits5 3.1 3.1 3.5 3.1 2.9 3.3 3.1 2.8 3.4 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 Domestic Nonfinancial Statistics • March 1991 1.23 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars; averages of Wednesday figures 1990 CCaatteeggoorryy Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Seasonally adjusted 1 Total loans and securities2 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 2,719.8 2 U.S. government securities 404.7 414.5 422.3 427.3 430.6 438.5 440.6 441.3 447.1 451.6 452.0 447.7 i Other securities 180.4 180.5 180.1 180.0 178.3 177.9 177.8 179.2 179.4 176.9 175.2 175.4 4 Total loans and leases 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 2,096.7 5 Commercial and industrial ..... 637.9 638.8 644.4 649.0 648.6 651.6 651.7 653.1 651.6 649.5 652.4 654.5 6 Bankers acceptances held ... 7.3 7.6 7.6 7.5 7.6 7.9 7.6 7.3 7.7 7.6 77..99 88..22 7 Other commercial and industrial 630.6 631.2 636.8 641.5 641.0 643.7 644.2 645.7 643.9 641.9 644.5 646.3 8 U.S. addressees 623.1 625.4 630.6 635.5 636.4 638.8 641.6 643.2 641.1 638.8 640.1 640.9 9 Non-U.S. addressees 7.6 5.8 6.2 6.0 4.5 4.9 2.6 2.5 2.8 3.1 4.4 5.4 10 Real estate 765.9 774.7 781.8 786.9 794.6 800.1 808.0 811.9 814.7 820.7 824.1 829.2 11 Individual 378.3 379.5 379.9 378.8 379.8 378.4 378.3 380.1 381.1 381.2 380.3 381.9 12 Security 39.3 40.0 37.1 36.1 34.8 35.3 38.8 46.0 4433..11 41.4 3399..99 4411..33 13 Nonbank financial institutions 32.5 32.9 33.8 33.9 33.9 34.4 34.8 35.7 36.1 36.1 35.5 35.8 14 Agricultural 30.9 30.8 30.6 30.4 30.0 29.5 29.3 29.2 29.1 29.2 29.5 2299..99 15 State and political subdivisions 38.6 38.9 38.4 38.2 37.9 37.4 36.5 35.9 35.2 34.6 34.3' 33.9 16 Foreign banks 8.1 7.8 8.4 8.8 8.7 7.4 7.0 8.0 7.9 8.9 8.2 7.6 17 Foreign official institutions 3.2 3.1 3.0 3.2 3.2 3.2 3.2 3.2 3.2 3.1 3.1 3.1 18 Lease financing receivables 32.1 32.1 32.4 32.4 32.7 32.4 32.8 32.9 32.9 33.3 33.0 32.7 19 All other loans 42.5 40.7 43.3 41.8 40.7 43.3 46.0 51.4 47.1 44.5 46.6 46.9 Not seasonally adjusted 20 Total loans and securities2 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 2,727.3 21 U.S. government securities 406.4 419.0 423.8 427.2 429.6 435.6 438.1 442.1 446.1 448.6 452.1 449.1 22 Other securities 180.9 180.3 179.7 179.4 177.7 177.2 176.4 179.3 179.6 177.7 176.3' 176.0 23 Total loans and leases2 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 2,102.2 24 Commercial and industrial ..... 636.4 639.5 646.0 653.3 652.7 654.0 652.1 650.6 647.7 647.1 649.6 654.0 25 Bankers acceptances held3... 7.4 7.7 7.4 7.3 7.5 7.8 7.3 7.4 7.8 7.8 3.0 8.2 26 Other commercial and industrial 629.1 631.8 638.6 645.9 645.2 646.2 644.8 643.1 639.9 639.3 641.7 645.8 27 U.S. addressees4 624.1 627.0 633.9 641.3 640.6 641.8 640.3 638.7 635.3 634.6 636.7 640.6 28 Non-U.S. addressees 4.9 4.8 4.7 4.6 4.6 4.4 4.5 4.5 4.6 4.7 5.0 5.2 29 Real estate 766.0 772.1 779.1 784.9 793.5 800.0 808.7 813.6 816.9 822.1 826.0 830.0 30 Individual 381.8 378.7 376.6 376.0 377.3 376.7 376.7 380.3 383.0 382.3 381.7 386.4 31 Security 37.8 39.5 38.1 38.5 35.3 37.4 38.8 45.3 42.1 4400..55 3388..77'' 4400..11 32 Nonbank financial institutions 33.2 32.5 33.0 33.7 33.9 34.7 35.(r 35.5 35.6 35.7 35.8 36.9 33 Agricultural 30.4 29.9 29.5 29.5 29.7 29.8 30.0 30.0 30.0 30.0 29.8 2299..88 34 State and political subdivisions 39.5 39.3 38.6 38.2 37.8 37.2 36.2 35.7 35.2 34.6 34.2 33.6 35 Foreign banks 8.2 7.8 7.8 8.4 8.7 7.6 7.1 7.9 8.1 9.2 8.3 7.5 36 Foreign official institutions 3.2 3.1 3.0 3.2 3.2 3.2 3.2 3.2 3.2 3.1 3.1 3.1 37 Lease financing receivables 32.5 32.3 32.4 32.5 32.7 32.3 32.5 32.7 32.8 33.2 33.0 32.8 38 All other loans 43.9 42.7 42.2 42.3 41.4 43.8 44.0 45.3 46.7 47.0 47.5 48.1 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 Source Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Seasonally adjusted 1 Total nondeposit funds2 — 258.1 267.6 271.4 267.8 269.6 271.2 282.4 283.4 281.5 290.8 292^ 286.3 2 Net balances due to related foreign offices3 — 10.9 14.7 17.4 16.6' 24.6 14.9 n.o' 16.9 19.4 28.4 28.6 33.3 3 Borrowings from other than commercial banks in United States4 247.2 252.9 254.0 251.1 245.0 256.2 265.4r 266.5r 262.1 262.4 264.3' 253.0 4 Domestically chartered banks 196.9 201.4 198.4 192.9 187.8 197.8 203.4 202.8 198.5" \91.V 196.1 187.7 5 Foreign-related banks 50.4 51.5 55.6 58.2 57.3 58.5 62.0 63.8 63.5 65.4r 68.2 65.3 Not seasonally adjusted 6 Total nondeposit funds2 — 254.6 270.8 277.2 270.5' 278.2 276.0' 211.%' 282.5 277.8r 285.8 290.7 279.4 7 Net balances due to related foreign offices3 — 10.5 14.3 16.2 14.4 26.4 15.6 14.9 17.1 20.2r 28.0' 29.5 35.7 8 Domestically chartered banks -14.5 -11.1 -11.5 -10.6 -1.3 -6.1 -5.8' -3.4' -4.2r -.9" .7 -4.2 9 Foreign-related banks 25.0 25.4 27.7 25.0 27.7 21.7 20.8 20.5 24.3' 28.9 28.8 40.0 10 Borrowings from other than commercial banks in United States4 244.1 256.4 261.0 256.2 251.7 260.5 262.9' 265.4' 257.6 257.8' 261.2 243.6 11 Domestically chartered banks 192.9 203.3 204.3 197.0 193.6 199.5 200.4' 202.3 195.4r 194.0' 196.1' 181.6 12 Federal funds and security RP borrowings5 190.3 199.6 199.8 193.3 190.2 196.4 197.6 198.7 191.5 190.8 193.2 178.8 13 Other6 2.7 3.7 4.5 3.7 3.4 3.2 2.9 3.6 4.0 3.2' 2.9 2.8 14 Foreign-related banks6 51.2 53.1 56.8 59.2 58.2 61.0 62.5 63.2 62.2' 63.8 65.1' 62.1 MEMO Gross large time deposits 15 Seasonally adjusted 462.7 460.6 457.3 455.1 454.7 452.7 454.0 450.7 445.5 441.5 439.5 435.9 16 Not seasonally adjusted 460.4 460.3 460.2 455.1 455.2 452.2 451.8 451.4 446.9 442.7 440.0" 434.3 U.S. Treasury demand balances at commercial banks8 17 Seasonally adjusted 20.2 17.8 19.2 21.2 18.6 20.4 14.9 33.2 28.2 21.9 26.8' 24.8 18 Not seasonally adjusted 23.2 22.0 16.7 20.0 25.2 20.9 15.2 23.5 31.0 20.9 19.2' 23.0 1. Commercial banks are those in the 50 states and the District of Columbia romissory 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 anking 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 $100,000 or more. Estimated averages of 3. Reflects net positions of U.S. chartered banks, Edge Act corporations, and daily data. U.S. branches and agencies of foreign banks with related foreign offices plus net 8. U.S. Treasury demand deposits and Treasury tax-and-loan notes at compositions with own IBFs. mercial banks. Averages of daily data. 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 • March 1991 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series1 Billions of dollars 1990 Account Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. ALL COMMERCIAL BANKING INSTITUTIONS2 1 Loans and securities 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 2,931.1 2 Investment securities 571.2 576.8 582.5 585.9 587.7 587.5 595.8 600.4 602.8 601.0 602.8 3 U.S. government securities 398.0 405.9 412.6 416.9 419.9 420.1 427.1 432.2 436.2 435.7 436.9 4 Other 173.2 170.8 169.9 169.0 167.8 167.4 168.7 168.2 166.6 165.3 165.9 i Trading account assets 30.2 26.0 23.9 21.4 23.7 27.2 29.2 21.3 27.3 24.8 22.0 6 Total loans 2,207.8 2,218.5 2,231.9 2,238.7 2,259.6 2,261.6 2,270.7 22,,226633..99 2,294.2 2,292.8 2,306.4 7 Interbank loans 187.5 191.6 190.6 192.8 202.7 199.9 198.4 118888..88 205.0 204.7 201.5 8 Loans excluding interbank 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 2,104.9 9 Commercial and industrial 642.4 646.2 653.3 650.9 654.1 648.7 646.3 646.7 649.0 649.8 656.8 10 Real estate 774.0 781.6 786.7 796.7 801.3 810.2 813.3 817.4 823.7 825.9 830.6 11 Individual 378.6 375.5 377.5 377.3 378.5 377.7 382.2 383.9 382.3 382.5 387.1 12 All other 225.3 223.6 223.8 220.9 222.9 225.0 230.6 227.1 234.1 230.0 230.3 13 Total cash assets 224.9 212.9 211.6 239.9 222.9 214.1 211.0 217.6 224.2 220.1 221.6 14 Reserves with Federal Reserve Banks. 29.5 32.0 31.6 27.8 32.0 30.1 30.3 33.9 29.9 33.2 23.7 15 Cash in vault 27.8 27.7 28.5 29.9 28.9 28.7 30.2 29.2 29.3 32.7 31.9 16 Cash items in process of collection ... 91.6 80.0 80.0 100.6 86.1 79.5 77.4 80.9 85.4 78.4 86.0 17 Demand balances at U.S. depository institutions 30.8 27.4 26.3 32.0 27.6 27.4 27.5 27.2 28.6 28.6 29.7 18 Other cash assets 45.2 45.8 45.2 49.7 48.3 48.4 45.6 46.4 50.9 47.2 50.2 19 Other assets 212.9 209.1 206.0 199.5 211.1 207.1 216.3 216.9 223.8 220.5 237.7 20 Total assets/total liabilities and capital 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 3,390.5 21 Deposits 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 2,359.4 22 Transaction deposits 616.6 594.3 601.0 618.4 599.6 591.5 590.5 596.3 613.2 599.1 638.1 23 Savings deposits 546.3 551.8 548.7 554.4 556.3 561.3 565.7 563.5 570.1 572.8 572.9 24 Time deposits 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 1,148.3 25 Borrowings 542.2 545.4 564.7 548.2 578.7 564.4 576.2 564.7 586.2 566.0 545.6 26 Other liabilities 229.3 230.8 218.0 227.8 227.2 224.3 231.7 236.8 238.2 257.3 265.0 27 Residual (assets less liabilities) 213.2 215.7 215.8 216.2 218.4 219.1 220.0 220.5 220.0 219.6 220.4 MEMO 28 U.S. government securities (including trading account) 421.2 423.8 427.8 430.0 433.8 438.9 444.3 442.9 452.4 450.0 448.4 29 Other securities (including trading account) 180.2 179.0 178.6 177.2 177.6 175.9 180.8 178.9 177.7 175.8 176.3 DOMESTICALLY CHARTERED COMMERCIAL BANKS3 30 Loans and securities 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 2,646.5 31 Investment securities 543.1 547.2 551.5 557.5 557.3 556.8 565.5 568.7 569.7 568.6 568.9 32 U.S. government securities 384.4 391.2 397.6 404.0 405.5 405.5 413.0 416.9 419.6 420.2 420.4 33 Other 158.7 156.0 154.0 153.5 151.9 151.4 152.5 151.8 150.0 148.4 148.4 34 Trading account assets 30.2 26.0 23.9 21.4 23.7 27.2 29.2 21.3 27.3 24.8 22.0 35 Total loans 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 2,055.7 36 Interbank loans 148.5 148.3 149.1 144.4 153.6 151.6 151.3 142.4 160.6 154.6 157.5 37 Loans excluding interbank 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 1,898.2 38 Commercial and industrial 518.3 519.4 523.4 520.4 519.2 516.9 513.4 513.3 514.1 511.6 511.2 39 Real estate 741.1 747.8 751.8 761.2 765.3 773.5 776.1 780.2 785.8 787.6 792.5 40 Individual 378.6 375.5 377.5 377.3 378.5 377.7 382.2 383.9 382.3 382.5 387.1 41 All other 206.5 206.3 204.6 202.8 205.3 206.7 209.9 206.1 209.8 207.1 207.4 42 Total cash assets 199.9 187.3 186.8 210.7 194.8 186.5 184.2 190.4 192.1 190.7 191.4 43 Reserves with Federal Reserve Banks. 27.5 29.8 29.8 26.6 30.8 28.8 28.1 32.2 28.5 31.4 23.0 44 Cash in vault 27.8 27.7 28.5 29.8 28.8 28.7 30.2 29.2 29.3 32.7 31.9 45 Cash items in process of collection ... 90.2 78.5 78.7 99.2 84.1 78.1 75.8 78.9 83.7 76.5 83.9 46 Demand balances at U.S. depository institutions 28.7 25.6 24.6 30.0 25.9 25.6 25.1 25.2 26.7 26.2 27.7 47 Other cash assets 25.7 25.7 25.2 25.1 25.2 25.3 25.0 25.0 23.9 23.9 24.9 48 Other assets 140.2 136.4 133.8 136.3 141.8 138.4 144.3 149.1 151.7 153.0 165.2 49 Total assets/liabilities and capital 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 3,003.0 50 Deposits 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 2,279.5 51 Transaction deposits 606.3 584.5 591.2 608.3 589.0 581.1 579.9 585.1 602.3 588.5 626.8 52 Savings deposits 543.4 548.8 545.7 551.4 553.3 558.3 562.7 560.4 567.0 569.5 569.6 53 Time deposits 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 1,083.1 54 Borrowings 394.2 393.1 405.4 391.7 409.9 395.6 403.5 395.0 399.6 393.3 376.2 55 Other liabilities 123.1 119.9 110.5 117.3 117.2 116.8 123.2 125.8 128.0 132.0 130.8 56 Residual (assets less liabilities) 209.3 211.8 212.0 212.3 214.6 215.3 216.1 216.7 216.2 215.8 216.6 MEMO 57 Real estate loans, revolving 51.4 52.0 53.1 54.0 55.0 56.1 57.4 58.1 60.4 60.9 61.4 58 Real estate loans, other 689.7 695.8 698.7 707.2 710.3 717.4 718.8 722.1 725.4 726.7 731.1 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. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 Dec. 5 Dec. 12 Dec. 19 Dec. 26 1 Cash and balances due from depository institutions 106,680 98,474 124,953 106,130 107,639" 107,019 106,643 107,105 2 Total loans, leases, and securities, net 1,316,233 1,305,927 1,311,348 1,305,215' 1,299,570" 1,308,365 1,301,990 1,303,670 3 U.S. Treasury and government agency 184,040 184,961 183,743 183,668 180,844 182,165 179,635 176,340 4 Trading account 16,141 16,783 15,538 16,186 14,279 16,000 14,185 12,596 5 Investment account 167,899 168,178 168,205 167,482 166,565 166,165 165,450 163,743 6 Mortgage-backed securities 82.075 82,237r 82,126' 82,251' 81,521' 81,523 80,703 79,303 All other maturing in 7 One year or less 15,149 15,159 15,020 15,254 15,271 15,678 15,956 16,264 8 Over one through five years 41,599 41,685 41,855 41,420 41,281 40,148 40,112 39,627 9 Over five years 29.076 29,096' 29,204' 28,557" 28,492' 28,815 28,679 28,549 10 Other securities 61,046 60,533 60,421 60,108 60,107 59,762 59,275 59,176 11 Trading account 1,376 1,364 1,406 1,406 1,529 1,355 910 1,064 12 Investment account 59,670 59,170 59,015 58,702 58,578 58,407 58,366 58,112 13 States and political subdivisions, by maturity 31,480 31,170 30,958 30,648 30,465' 30,102 29,937 29,520 14 One year or less 3,792 3,797 3,752 3,646 3,649 3,650 3,628 3,589 15 Over one year 27,689 27,373 27,206 27,002 26,816 26,452 26,309 25,931 16 Other bonds, corporate stocks, and securities 28,189 28,000 28,057 28,054 28,113 28,306 28,428 28,592 17 Other trading account assets 9,497' 9,557' 9,178 8,368 8,729 8,617 8,292 9,004 2 2 1 1 1 0 8 9 Fe T T T d o o o e r o n c a t l o o h m n f e u b r m n a s n e d k r s c s i b a o r l l o d b k 3 a e n rs k s a nd dealers in securities 8 5 1 4 0 8 7 , , , , 5 8 2 9 9 3 6 7 9 2 0 3 ' ' 7 5 1 4 5 0 8 , , , , 0 2 1 6 1 1 9 1 2 8 3 3 ' ' 7 5 1 4 5 7 7 , , , , 2 3 2 6 6 9 2 7 5 0 0 6 " " 7 5 1 4 2 0 8 , , , , 5 8 1 1 5 3 5 2 2 7 8 7 " ' 4 7 1 8 4 1 9 , , , , 1 1 3 0 1 3 0 5 1 4 0 4 7 5 1 6 4 4 8 , , , , 7 3 1 1 9 1 5 7 2 6 0 3 7 5 2 0 1 6 3 , , , , 9 2 0 8 7 5 7 5 2 2 8 3 7 5 2 4 5 0 0 , , , , 6 7 7 2 1 3 7 9 1 6 5 9 22 Other loans and leases, gross 1,020,85c 1,016,970" 1,020,866 1,020,413' 1,018,709" 1,021,299 1,018,922 1,023,606 23 Other loans, gross 993,464' 989,630' 993,458 993,06c 991,382" 993,968 991,638 996,531 24 Commercial and industrial 319,426' 319,592' 319,017' 319.40C 317,822' 319,262 317,646 316,592 25 Bankers acceptances and commercial paper 1,574 1,520 1,488 1,338 1,384 1,493 1,380 1,315 26 All other 317,852' 318,071" 317,529' 318,061' 316,438" 317,769 316,266 315,278 27 U.S. addressees 316,294' 316,609' 315,886' 316,601" 315,017' 316,327 314,838 313,902 28 Non-U.S. addressees 1,558 1,462 1,643 1,460 1,421 1,442 1,428 1,376 29 Real estate loans 382,718' 383,252' 384,187 384,903' 383,952' 386,994 387,157 388,401 30 Revolving, home equity 32,695 32,676 32,803 32,864 32,939 33,323 32,946 33,198 31 All other 350,023' 350,576" 351,384 352,039' 351,013' 353,671 354,211 355,203 32 To individuals for personal expenditures 173,631 172,654 172,754 172,993 173,366' 173,785 174,448 175,727 33 To depository and financial institutions 51,704' 50,624" 51,612" 51,30C 51,242' 51,192 49,879 51,465 34 Commercial banks in the United States 23,092' 22,571" 22,943' 23,632' 23,74C 22,719 21,551 23,297 35 Banks in foreign countries 4,555 3,993 4,378 4,159 4,208 4,326 4,344 4,038 36 Nonbank depository and other financial institutions . 24,056' 24,060" 24,292' 23,51C 23,294' 24,146 23,984 24,130 37 For purchasing and carrying securities 14,407 12,958 14,020 13,062 14,020 12,062 12,721 13,344 38 To finance agricultural production 6,127 6,065 6,046 5,930 5,858 5,822 5,817 5,848 39 To states and political subdivisions 21,743 21,611 21,611' 21,49C 21,415 21,256 21,112 20,950 40 To foreign governments and official institutions 1,310 1,352 1,431 1,492 1,402 1,489 1,563 1,280 4 4 4 4 4 4 1 2 3 4 5 6 A O L L E e l t l h S a o e S s A e r t : h l l U L l e f o i r o n o n a a a n e t a n h n s a s c e r s a a i r n e n n n t e g s d d d r l l i e e e n c a a c e s s o e e i m v s r , a e e b n s l e e — e t r s v e4 9 1 2 2 3 8 4 4 2 7 5 0 0 , , , , , , 2 7 3 3 8 0 4 8 4 9 8 1 9 5 6 8 6 6 ' ' ' 9 1 2 2 7 3 3 4 1 7 6 5 9 , , , , , , 2 8 3 5 3 8 3 8 8 2 4 5 2 1 2 2 1 7 ' ' ' 9 1 2 2 8 3 3 4 7 2 0 5 9 , , , , , , 2 4 7 9 7 8 2 0 3 1 4 7 4 8 1 0 6 8 ' 9 1 2 2 3 8 4 4 7 5 2 0 1 , , , , , , 2 3 9 2 4 3 1 5 6 3 9 6 4 4 5 C 4 9 ' ' 9 1 2 2 3 7 4 4 7 2 5 8 2 , , , , , , 1 3 3 9 5 9 9 2 0 2 9 6 6 6 6 3 0 0 ' ' ' ' 9 1 8 2 2 3 4 4 1 7 2 6 4 , , , , , , 1 1 3 0 1 9 0 3 5 3 5 0 5 1 4 9 9 6 9 1 2 7 2 3 4 7 4 1 8 6 4 , , , , , , 2 2 1 7 0 4 8 9 4 1 4 6 5 5 6 0 3 6 9 1 8 2 2 3 4 4 3 7 2 6 8 , , , , , , 4 1 0 9 0 4 3 7 2 2 3 4 9 5 4 8 8 8 47 Total assets 1,562,959 1,543,784 1,576,148 1,552,714 1,550,169" 1,560,343 1,553,076 1,559,223 48 Demand deposits 224,812 213,880 234,321 221,678 217,214 226,104 224,606 230,851 49 Individuals, partnerships, and corporations 179,827 173,796 188,752 178,123 173,928 182,170 181,317 184,995 50 States and political subdivisions 6,844 5,825 5,757 7,201 6,427 6,796 6,640 6,882 51 U.S. government 2,117 1,427 1,593 2,070 1,038 1,661 1,448 1,909 52 Depository institutions in the United States 20,547 18,678 23,771 19,568 19,915 20,469 19,542 21,847 6 6 6 6 6 6 6 6 5 5 5 5 5 5 5 0 1 2 3 4 5 6 7 5 6 7 8 9 4 3 T L O N r i t o a T F A a B D U S C I F B h n b n n o t r e o o l e e a . t i d a l e s r S r r r r r l p n t a i e a t i e a r o . e l v o k i t c o i s i i n t f s i s g i g s g a t u e h w i s d i i n n b e o s a r e a i t o u i d y n i v o n r c n n l g a f g d e r i t o a g l f l o t o t y i r s b i r o a i s n o v n v a p , e x a d r n b i b s e m e o f e p n l - o i r r r a l i a o s a a l e b i n o n g r n i n t t f r n n m a r t n m m i i c f t d i d o t c t l n i e e u - a e e a c c w s F s e l t n l s n n o e o i r e e u f c t r o o t u s a s d d s o s b s e n h n t n u , ' r e s h o s i t b a m c r p o r e r b n n d a h i d r i f s o o o d l n e i e f , i v r n s t t i n c R e r c h o i t a e a k o s h s i a f y n e a t s i e f w n d s e o l i d e c n e U i d c i r n d s a v e n o n s l e m i r t o m i t i p t n e t a B o e o u d s n s n r a t t d i a i e n S a o t t y u k n t d n i a s o t d e > s i t n , p o e s d n o s a e s s n b i d t e s n b t a u n r k e s s . . 7 7 2 2 1 1 7 2 2 9 7 5 0 3 8 8 9 6 8 6 5 2 5 3 1 , , , , , , , , , , , , 6 3 8 9 8 0 3 1 1 0 5 7 0 0 1 0 5 2 4 6 6 9 5 1 6 9 1 8 1 7 1 2 9 2 9 0 6 0 6 5 9 1 6 8 9 7 7 2 2 1 7 8 5 2 8 2 0 8 5 9 7 6 0 8 0 7 6 1 0 , , , , , , , , , , , , 3 0 4 3 3 6 4 7 0 8 6 4 0 9 4 9 3 5 7 7 6 2 5 3 3 4 0 9 5 3 8 2 6 3 8 3 6 9 9 0 8 9 3 7 7 3 2 1 9 5 0 2 7 2 0 6 9 0 6 0 8 0 9 7 6 0 1 , , , , , , , , , , , , 5 0 3 4 1 4 7 5 0 8 4 5 2 7 0 5 9 4 8 7 2 1 0 1 5 8 2 3 3 0 8 5 0 0 1 4 2 7 0 0 6 7 8 6 3 7 7 2 2 1 7 2 8 1 5 7 1 0 9 8 8 5 8 5 8 4 5 3 3 1 , , , , , , , , , , , , 4 6 6 9 7 9 9 3 4 1 5 0 7 3 9 9 4 5 8 6 4 3 2 5 9 1 5 6 7 8 2 9 7 9 7 2 5 6 0 4 0 0 5 ' 7 7 2 2 1 7 9 5 1 7 2 0 1 8 5 9 5 0 3 7 4 8 5 6 1 , , , , , , , , , , , , 3 5 3 9 6 9 8 9 3 4 6 4 2 0 7 5 3 8 7 8 2 4 3 6 4 3 4 1 1 4 5 9 5 8 8 4 2 5 5 8 3 0 9 " 7 2 2 7 1 7 8 2 8 2 5 0 4 6 1 4 8 3 5 9 5 9 1 5 , , , , , , , , , , , , 5 7 3 5 0 1 7 4 2 7 0 7 0 3 8 5 6 1 3 5 4 4 9 1 5 9 6 0 5 2 7 2 1 5 2 5 8 4 0 6 3 9 5 7 7 2 2 1 7 7 5 2 8 2 0 4 7 2 8 2 8 1 6 8 5 5 1 , , , , , , , , , , , , 6 7 6 8 7 7 7 4 4 7 4 5 4 0 8 4 6 0 5 1 5 5 5 4 5 9 0 9 0 5 5 7 1 0 5 0 6 5 4 0 0 2 9 8 7 7 2 2 1 7 2 5 5 8 2 2 0 8 2 7 3 5 2 7 5 8 5 4 1 , , , , , , , , , , , , 5 3 8 9 1 6 5 9 8 6 7 4 4 0 0 8 8 8 2 3 7 7 9 0 9 6 9 4 1 1 7 8 0 8 0 9 0 7 0 9 2 6 0 68 Total liabilities 1,458,265 1,439,386 1,471,389 1,448,610 1,445,573' 1,455,814 1,447,913 1,454,502 69 Residual (total assets minus total liabilities)6 104,695 104,397 104,759 104,104 104,596' 104,529 105,162 104,721 70 T M o E t M al O l oans and leases (gross) and investments adjusted 7 1,274,914' 1,273,277" 1,273,275' 1,271,635' 1,267,838' 1,271,447 1,269,680 1,269,764 71 Total loans and leases (gross) adjusted 1,020,330" 1,018,225' 1,019,933' 1,019,492' 1,018,158' 1,020,902 1,022,477 1,025,245 72 Time deposits in amounts of $100,000 or more 209,051' 208,704' 207,538 206,728 206,049 205,508 204,806 202,167 73 U.S. Treasury securities maturing in one year or less ... 15,268' 15,421 15,376 15,224 15,104 15,245 15,426 14,264 74 Loans sold outright to affiliates—total8 280 277 281 278 263 250 259 262 75 Commercial and industrial 138 136 150 152 140 135 135 138 76 Other 142 140 131 125 123 115 124 124 77 Nontransaction savings deposits (including MMDAs) 288,629 290,268 291,347 290,208 289,582 292,945 292,352 291,425 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 transfer 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 • March 1991 1.28 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY1 Millions of dollars, Wednesday figures 1990 AAccccoouunntt Oct. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 Dec. 5 Dec. 12 Dec. 19 Dec. 26 1 Cash balances due from depository institutions 21,704 22,020 26,393 20,970 23,816 20,642 21,815 24,567 20,398 2 Total loans, leases, and securities, net2 220,234 214,241 217,372 214,147 213,274 215,993 217,660 216,877 214,789 Securities 3 U.S. Treasury and government agency 0 0 0 0 0 0 0 0 0 4 Trading account 0 0 0 0 0 0 0 0 0 5 Investment account 24,195 24,249 24,189 23,299 22,785 23,138 23,182 22,936 22,992 6 Mortgage-backed securities 11,850 11,841 11,968 11,789 11,425 11,448 11,444 11,151 11,232 All other maturing in 7 One year or less 2,338 2,361 2,297 2,319 2,335 2,662 2,675 2,691 2,632 8 Over one through five years 5,017 5,076 4,923 4,1% 4,034 3,891 3,922 3,951 3,974 9 Over five years 4,990 4,971 5,000 4,995 4,990 5,136 5,141 5,143 5,153 10 Other securities3 0 0 0 0 0 0 0 0 0 11 Trading account 0 0 0 0 0 0 0 0 0 12 Investment account 12,781 12,569 12,438 12,234 12,160 12,187 12,173 12,128 12,108 13 States and political subdivisions, by maturity 5,859 5,632 5,528 5,307 5,254 5,227 5,214 5,189 5,173 14 One year or less 616 607 606 592 597 599 601 579 572 15 Over one year 5,242 5,025 4,922 4,715 4,658 4,627 4,613 4,611 4,600 16 Other bonds, corporate stocks, and securities 6,922 6,936 6,911 6,927 6,905 6,960 6,958 6,938 6,935 17 Other trading account assets 0 0 0 0 0 0 0 0 0 Loans and leases 18 Federal funds sold 19,082 16,102 17,323 16,022 15,229 18,166 20,425 17,145 16,573 19 To commercial banks 13,450 9,289 11,743 9,403 9,273 11,932 13,1% 11,220 11,529 20 To nonbank brokers and dealers in securities 5,136 5,792 4,970 5,912 5,306 5,582 6,431 5,448 4,656 21 To others 496 1,021 609 706 650 651 798 477 388 22 Other loans and leases, gross 180,168 177,349 179,504 178,682 179,167 178,534 177,920 180,707 179,049 23 Other loans, gross 174,436 171,628 173,760 172,930 173,429 172,7% 172,197 174,968 173,318 24 Commercial and industrial 58,210 57,715 58,052 57,837 57,158 58,316 57,3% 56,594 56,608 25 Bankers acceptances and commercial paper 153 145 138 141 142 142 117 109 108 26 Mother 58,056 57,571 57,914 57,696 57,016 58,174 57,279 56,485 56,500 27 U.S. addressees 57,430 56,961 57,169 57,103 56,474 57,563 56,676 55,926 55,879 28 Non-U.S. addressees 626 609 745 594 542 611 602 558 621 29 Real estate loans 62,369 62,498 62,626 62,912 62,696 62,787 62,963 63,137 62,356 30 Revolving, home equity 4,364 4,359 4,363 4,371 4,372 4,322 4,333 4,342 4,346 31 All other 58,005 58,139 58,263 58,541 58,325 58,465 58,630 58,795 58,010 32 To individuals for personal expenditures 19,969 19,956 20,013 20,011 19,886 19,787 19,812 19,932 19,474 33 To depository and financial institutions 18,572 17,566 17,917 17,756 18,228 17,749 17,724 19,453 19,191 34 Commercial banks in the United States 6,438 5,818 5,741 5,960 6,5% 5,784 5,780 7,802 7,709 35 Banks in foreign countries 3,642 3,098 3,323 3,261 3,347 3,516 3,602 3,409 3,490 36 Nonbank depository and other financial institutions 8,492 8,649 8,852 8,535 8,285 8,449 8,341 8,242 7,992 37 For purchasing and carrying securities 5,284 4,327 4,952 4,112 4,951 3,972 4,245 4,801 4,403 38 To finance agricultural production 153 169 168 172 172 176 176 166 156 39 To states and political subdivisions 4,343 4,318 4,337 4,331 4,328 4,346 4,288 4,232 4,232 40 To foreign governments and official institutions 199 232 308 367 276 375 436 321 466 41 All other 5,336 4,845 5,386 5,433 5,734 5,288 5,158 6,332 6,432 42 Lease financing receivables 5,732 5,722 5,744 5,752 5,738 5,738 5,723 5,739 5,730 43 LESS: Unearned income 1,810 1,810 1,809 1,810 1,809 1,790 1,768 1,767 1,769 44 Loan and lease reserve 14,183 14,217 14,273 14,281 14,258 14,241 14,272 14,272 14,163 45 Other loans and leases, net6 164,176 161,322 163,422 162,592 163,100 162,502 161,881 164,668 163,117 46 All other assets' 56,300 56,490 56,951 57,408 59,626 58,468 57,599 60,749 63,902 47 Total assets 298,238 292,751 300,716 292,525 296,716 295,103 297,075 302,194 299,089 Deposits 48 Demand deposits 45,437 43,309 47,383 44,282 46,534 46,414 46,767 50,992 49,981 49 Individuals, partnerships, and corporations 31,968 31,030 34,376 31,332 32,590 33,429 32,847 36,533 35,609 50 States and political subdivisions 641 632 536 626 777 532 620 741 664 51 U.S. government 294 121 179 235 102 202 174 237 161 52 Depository institutions in the United States 4,482 3,729 4,392 3,692 4,009 4,015 3,935 5,189 4,721 53 Banks in foreign countries 4,752 4,442 4,839 4,628 4,119 3,920 5,315 4,327 4,356 54 Foreign governments and official institutions 419 510 390 454 494 614 368 659 430 55 Certified and officers' checks 2,882 2,846 2,670 3,315 4,443 3,702 33,,550099 33,,330066 44,,004400 56 Transaction balances other than demand deposits (ATS, NOW, Super NOW, telephone transfers) 8,406 8,589 8,528 8,598 8,376 8,836 8,676 8,879 8,979 57 Nontransaction balances 112,559 112,428 113,004 112,350 112,076 112,952 112,641 111,837 111,977 58 Individuals, partnerships, and corporations 104,752 104,926 105,448 104,749 104,444 105,497 105,241 104,778 105,064 59 States and political subdivisions 5,631 5,695 5,753 5,916 5,980 5,813 5,764 5,469 5,372 60 U.S. government 119 117 112 112 118 124 122 112 108 61 Depository institutions in the United States 1,527 1,526 1,523 1,404 1,362 1,350 1,347 1,315 1,252 62 Foreign governments, official institutions, and banks 530 164 167 170 170 168 166 163 180 63 Liabilities for borrowed money 62,290 63,075 66,637 59,714 61,164 58,318 58,685 61,010 57,631 64 Borrowings from Federal Reserve Banks 0 0 0 0 0 0 0 0 3,345 65 Treasury tax-and-loan notes 5,010 1,979 2,074 2,489 3,158 871 937 5,120 6,093 66 All other liabilities for borrowed money 57,279 61,0% 64,563 57,224 58,006 57,448 57,748 55,889 48,192 67 Other liabilities and subordinated notes and debentures 44,093 40,220 40,048 42,603 43,764 43,397 44,986 44,446 44,961 68 Total liabilities 272,785 267,623 275,601 267,548 271,914 269,917 271,756 277,165 273,528 69 Residual (total assets minus total liabilities)9 25,452 25,128 25,115 24,977 24,802 25,186 25,319 25,029 25,560 MEMO 70 Total loans and leases (gross) and investments adjusted2,10 216,338 215,162 215,969 214,874 213,472 214,308 214,723 213,894 211,483 71 Total loans and leases (gross) adjusted 179,362 178,344 179,342 179,341 178,527 178,984 179,369 178,830 176,384 72 Time deposits in amounts of $100,000 or more 35,893 35,415 35,244 34,950 34,817 35,289 34,945 34,384 34,316 73 U.S. Treasury securities maturing in one year or less 1,791 2,051 2,235 2,386 2,191 2,175 2,089 1,935 1,884 1. These data also appear in the Board's H.4.2 (504) release. For address, see 7. Includes trading account securities. inside front cover. 8. Includes federal funds purchased and securities sold under agreements to 2. Excludes trading account securities. repurchase. 3. Not available due to confidentiality. 9. Not a measure of equity capital for use in capital adequacy analysis or for 4. Includes U.S. government-issued or guaranteed certificates of participation other analytic uses. in pools of residential mortgages. 10. Exclusive of loans and federal funds transactions with domestic commer- Digitized for FRAS5. EIRnc ludes securities purchased under agreements to resell. cial banks. 6. Includes allocated transfer risk reserve. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Commercial Banks A21 1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS1 Assets and Liabilities Millions of dollars, Wednesday figures 1990 Account Oct. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 Dec. 5 Dec. 12 Dec. 19 Dec. 26 1 Cash and due from depository institutions ... 17,374 16,515 17,455 14,711 15,292 15,044 15,853 14,774 16,332 2 Total loans and securities 163,623' 162,182' 167,122 164,017' 167,730' 165,969 170,051 169,302 169,948 3 U.S. Treasury and government agency securities 11,296 11,752 12,068 1111,,115577 11,161 1111,,333300 1122,,663311 1122,,448811 1111,,777788 4 Other securities. 7,480 7,599 7,626 7,618 7,639 7,787 7,856 7,878 7,938 5 Federal funds sold2 7,600 4,304 9,174 6,078 8,905 4,984 6,949 6,205 6,511 6 To commercial banks in the United States . 4,334 2,267 6,449 4,471 6,418 2,618 4,105 3,445 3,980 7 To others 3,266 2,037 2,725 1,607 2,487 2,366 2,844 2,760 2,531 8 Other loans, gross 137,247' 138,527' 138,254 139,164' 140,025' 141,868 142,615 142,738 143,721 9 Commercial and industrial 77,625' 77,901' 78,208' 78,950' 79,554' 80,669 80,975 81,864 83,871 10 Bankers acceptances and commercial paper 2,579 2,682 2,694 2,895 3,020 3,123 22,,773399 22,,882277 33,,003388 11 All other 75,046r 75,2^ 75,514' 76,055' 76,534' 77,546 78,236 79,037 80,833 12 U.S. addressees 73,626' 73,684' 73,949' 74,519' 74,87c 75,880 76,550 77,295 79,111 13 Non-U.S. addressees 1,420 1,535 1,565 1,536 1,664 1,666 1,686 1,742 1,722 14 Loans secured by real estate3 25,482' 25,691' 25,575' 25,76c 25,994' 26,229 26,041 26,015 26,071 15 To financial institutions 30,376 30,787 30,539 30,277 30,274 30,491 31,130 30,028 29,343 16 Commercial banks in the United States.. 22,374 23,195 23,424 23,343 23,293 23,460 23,924 22,851 22,238 17 Banks in foreign countries 2,730 2,416 1,828 1,769 1,697 1,445 1,476 1,300 1,208 18 Nonbank financial institutions 5,272 5,176 5,287 5,165 5,284 5,586 5,730 5,877 5,897 19 To foreign governments and official institutions 199 204 213 221166 207 221100 221188 221166 220033 20 For purchasing and carrying securities 1,561 1,582 1,371 1,581 1,609 1,768 1,698 2,148 1,583 21 All other3 2,004 2,362 2,348 2,380 2,387 2,501 2,553 2,467 2,650 22 Other assets (claims on nonrelated parties) .. 33,200 33,593 33,227 33,917 33,742 33,877 34,624 34,346 34,060 23 Net due from related institutions 12,980 13,286 12,766 12,985 10,456 12,770 12,345 12,778 11,907 24 Total assets 227,178' 225,578' 230,570 225,629 227,221 227,664 232,873 231,202 232,250 25 Deposits or credit balances due to other than directly related institutions 45,456' 45,374' 45,048 44,907' 44,701 44,313 4444,,668822 4455,,669966 4466,,993344 26 Transaction accounts and credit balances . 3,983' 3,928' 3,999 4,266' 4,405 4,295 4,597 4,334 4,603 27 Individuals, partnerships, and corporations 2,664' 2,70C 2,690 2,957' 2,929 2,907 22,,777755 22,,991166 33,,000011 28 Other 1,319' 1,228 1,309 1,309' 1,476 1,388 1,822 1,418 1,602 29 Nontransaction accounts 41,473 41,446 41,049 40,641' 40,296 40,018 40,085 41,362 42,331 30 Individuals, partnerships, and corporations 32,040 31,902 31,566 31,245' 30,961 3300,,990088 3300,,999988 3322,,447766 3333,,113344 31 Other 9,433 9,544 9,483 9,396 9,335 9,110 9,087 8,886 9,197 32 Borrowings from other than directly related institutions 118,298 116,939 117,215 116,206 110,249 115,015 111111,,110011 111111,,661155 110066,,998866 33 Federal funds purchased 55,695 52,248 52,394 44,106 44,281 48,309 42,987 45,902 42,491 34 From commercial banks in the United States 29,047 25,429' 23,475' 22,070 21,228 22,558 19,588 20,491 2222,,552200 35 From others 26,648 26,819' 28,9^ 22,036 23,053 25,751 23,399 25,411 19,971 36 Other liabilities for borrowed money 62,603 64,691 64,821 72,100 65,968 66,706 68,114 65,713 64,495 37 To commercial banks in the United States 35,334 36,065 35,830 38,703 38,432 38,625 3388,,000055 3377,,337744 3355,,003399 38 To others 27,269 28,626 28,991 33,397 27,536 28,081 30,109 28,339 29,456 39 Other liabilities to nonrelated parties 32,964 33,096 33,056 33,458' 33,598 33,366 34,296 33,467 33,459 40 Net due to related institutions 30,459' 30,168' 35,250 31,058' 38,672 34,971 42,794 40,422 44,871 41 Total liabilities 227,178' 225,578' 230,570 225,629 227,221 227,664 232,873 231,202 232,250 MEMO 42 Total loans (gross) and securities adjusted .. 136,915' 136,720' 137,249 136,203' 138,019' 139,891 142,022 143,006 143,730 43 Total loans (gross) adjusted7 118,139' 117,369' 117,555 117,428' 119,219' 120,774 121,535 122,647 124,014 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 • March 1991 1.31 GROSS DEMAND DEPOSITS Individuals, Partnerships, and Corporations1 Billions of dollars, estimated daily-average balances, not seasonally adjusted Commercial banks Type of holder 1989 1990 1986 1987 1988 1989 Dec. Dec. Dec. Dec. Sept. Dec. Mar. June Sept. Dec. 1 All holders—Individuals, partnerships, and corporations 363.6 343.5 354.7 352.2 337.3 352.2 328.7 334.3 2 Financial business 41.4 36.3 38.6 33.8 33.7 33.8 34.1 34.9 3 Nonfinancial business 202.0 191.9 201.2 202.5 190.4 202.5 183.3 186.5 4 Consumer 91.1 90.0 88.3 90.3 87.9 90.3 86.6 86.4 5 Foreign 3.3 3.4 3.7 3.1 2.9 3.1 3.0 3.1 6 Other 25.8 21.9 22.8 22.5 22.4 22.5 21.7 23.5 Weekly reporting banks 1989 1990 11998866 11998877 11998888 11998899 DDeecc.. DDeecc.. DDeecc.. DDeecc.. Sept. Dec. Mar. June Sept. Dec. 7 All holders—Individuals, partnerships, and corporations 195.1 183.8 198.3 196.7 186.6 196.7 183.7 186.3 185.1 f 8 Financial business 32.5 28.6 30.5 27.6 26.3 27.6 25.6 25.0 27.0 1 9 Nonfinancial business 106.4 100.0 108.7 108.8 101.6 108.8 100.1 101.7 100.0 n.a. 10 Consumer 37.5 39.1 42.6 44.1 43.0 44.1 42.4 43.3 43.1 1 11 Foreign 3.3 3.3 3.6 3.0 2.8 3.0 2.8 2.9 2.8 1 12 Other 15.4 12.7 12.9 13.2 12.9 13.2 12.8 13.3 12.3 1. Figures include cash items in process of collection. Estimates of gross and may contain reporting errors. Data for all commercial banks for March 1985 deposits are based on reports supplied by a sample of commercial banks. Types were revised as follows (in billions of dollars): all holders, - .3; financial business, of depositors in each category are described in the June 1971 Bulletin, p. 466. -.8; nonfinancial business, -.4; consumer, .9; foreign, .1; other, -.1. Data for Figures may not add to totals because of rounding. weekly reporting banks for March 1985 were revised as follows (in billions of 2. Beginning in March 1984, these data reflect a change in the panel of weekly dollars): all holders, -.1; financial business, -.7; nonfinancial business, -.5; reporting banks, and are not comparable to earlier data. Estimates in billions of consumer, 1.1; foreign, .1; other, -.2. dollars for December 1983 based on the new weekly reporting panel are: financial 3. Beginning March 1988, these data reflect a change in the panel of weekly business, 24.4; nonfinancial business, 80.9; consumer, 30.1; foreign, 3.1; other 9.5. reporting banks, and are not comparable to earlier data. Estimates in billions of Beginning March 1985, financial business deposits and, by implication, total dollars for December 1987 based on the new weekly reporting panel are: financial gross demand deposits have been redefined to exclude demand deposits due to business, 29.4; nonfinancial business, 105.1; consumer, 41.1; foreign, 3.4; other, thrift institutions. Historical data have not been revised. The estimated volume of 13.1. such deposits for December 1984 is $5.0 billion at all insured commercial banks NOTE. This is the last month in which this table will appear because data are no and $3.0 billion at weekly reporting banks. longer available. Historical data back to March 1985 have been revised to account for corrections of bank reporting errors. Historical data before March 1985 have not been revised, 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 11998855 11998866 11998877 11998888 11998899 IInnssttrruummeenntt DDeecc.. DDeecc.. DDeecc.. DDeecc.. DDeecc.. June July Aug. Sept. Oct. Nov. Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 298,779 329,991 358,056 457,297 529,055 537,023 545,849 546,691 559,593 557,731 561,448 Financial companies1 Dealer-placed paper 2 Total 78,443 101,072 102,844 160,094 187,084 191,463 199,466 199,099 205,093 203,987 214,199 3 Bank-related [not seasonally adjusted) 1,602 2,265 1,428 1,248 n.a. n.a. n.a. n.a. n.a. n.a. n.a. Directly placed paper 4 Total 135,320 151,820 173,980 194,537 212,210 202,101 202,829 202,217 204,065 204,273 203,289 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 81,232 102,666 129,761 143,459 143,554 145,375 150,435 149,471 143,960 Bankers dollar acceptances (not seasonally adjusted)6 7 Total 68,413 64,974 70,565 66,631 62,972 53,750 52,006 52,324 50,469 52,093 53,968 Holder 8 Accepting banks 11,197 13,423 10,943 9,086 9,433 9,972 9,628 9,944 9,366 9,189 8,751 9 Own bills 9,471 11,707 9,464 8,022 8,510 8,639 8,395 7,895 7,944 7,868 7,535 10 Bills bought 1,726 1,716 1,479 1,064 924 1,332 1,233 2,049 1,421 1,321 1,217 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 1,507 1,571 1,560 1,333 1,145 8,800 13 Others 56,279 50,234 58,658 56,052 52,473 42,271 40,806 40,821 39,770 41,760 44,337 Basis 14 Imports into United States. 15,147 14,670 16,483 14,984 15,651 14,801 13,691 13,188 12,723 12,408 12,758 15 Exports from United States 13,204 12,960 15,227 14,410 13,683 12,511 12,186 12,221 11,889 13,238 13,865 16 All other 40,062 37,344 38,855 37,237 33,638 26,438 26,129 26,915 25,856 26,447 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. TTie 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 Period Av r e a r t a e ge Period Av r e a r te a ge Period Feb. 2 8.50 1988 9.32 1989— Jan. ... 10.50 1990— Jan. ... May 11 9.00 1989 10.87 Feb. .. 10.93 Feb. .. July 14 9.50 1990 10.01 Mar. .. 11.50 Mar. .. Aug. 11 10.00 Apr. .. 11.50 Nov. 28 10.50 1988— Jan. 8.75 May ... 11.50 May ... Feb. 8.51 June .. 11.07 June .. Feb. 10 11.00 Mar. 8.50 July ... 10.98 July ... 24 11.50 Apr. 8.50 Aug. .. 10.50 Aug. .. June 5 11.00 May 8.84 Sept. .. 10.50 Sept. .. July 31 10.50 June 9.00 Oct. ... 10.50 Oct. ... July 9.29 Nov. .. 10.50 Nov. .. 1990- Jan. 8 10.00 Aug. 9.84 Dec. .. 10.50 Dec.... Sept. 10.00 Oct. 10.00 1991— Jan Nov. 10.05 Dec. 10.50 NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases. For address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic NonfinancialS tatistics • March 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 11998888 11998899 11999900 Sept. Oct. Nov. Dec. Nov. 30 Dec. 7 Dec. 14 Dec. 21 MONEY MARKET RATES 1 Federal funds1'2,3 7.57 9.21 8.10 8.20 8.11 7.81 7.31 7.56 7.60 7.25 7.29 2 Discount window bon-owing2,11 6.20 6.93 6.98 7.00 7.00 7.00 6.79 7.00 7.00 7.00 6.93 Commercial paper' ' 3 1-month 7.58 9.11 8.15 8.09 8.04 7.84 8.28 7.81 8.23 7.79 8.23 4 3-month 7.66 8.99 8.06 7.96 7.98 7.91 7.80 8.06 7.94 7.48 7.73 5 6-month 7.68 8.80 7.95 7.83 7.81 7.74 7.49 7.83 7.71 7.27 7.39 Finance paper, directly placed3, ,6 6 1-month 7.44 8.99 8.00 7.98 7.92 7.64 7.62 7.49 7.92 7.39 7.64 7 3-month 7.38 8.72 7.87 7.74 7.80 7.75 7.32 7.77 7.64 7.17 7.30 8 6-month 7.14 8.16 7.53 7.50 7.50 7.42 6.95 7.38 7.30 6.91 6.81 Bankers acceptances3,4, 9 3-month 7.56 8.87 7.93 7.83 7.85 7.82 7.60 7.99 7.68 7.33 7.60 10 6-month 7.60 8.67 7.80 7.70 7.67 7.58 7.25 7.72 7.40 7.11 7.18 Certificates of deposit, secondary market3,8 11 1-month 7.59 9.11 8.15 8.08 8.03 7.92 8.27 8.04 8.22 7.79 8.22 12 3-month 7.73 9.09 8.15 8.06 8.06 8.03 7.82 8.23 7.% 7.54 7.79 13 6-month 7.91 9.08 8.17 8.06 8.05 7.95 7.64 8.08 7.85 7.46 7.54 14 Eurodollar deposits, 3-month3, 7.85 9.16 8.16 8.07 8.06 8.04 7.87 8.14 8.19 7.69 7.74 U.S. Treasury bills Secondary market3, 15 3-month 6.67 8.11 7.50 7.36 7.17 7.06 6.74 7.04 6.99 6.83 6.66 16 6-month 6.91 8.03 7.46 7.32 7.16 7.03 6.70 7.00 6.88 6.71 6.64 17 1-year 7.13 7.92 7.35 7.24 7.06 6.85 6.61 6.83 6.78 6.64 6.53 Auction average3,4, 18 3-month 6.68 8.12 7.51 7.38 7.19 7.07 6.81 7.02 7.06 6.86 6.78 19 6-month 6.92 8.04 7.47 7.33 7.20 7.04 6.76 6.96 6.96 6.74 6.77 20 1-year 7.17 7.91 7.36 7.25 7.01 6.81 6.58 n.a. n.a. n.a. 6.58 CAPITAL MARKET RATES U.S. Treasury notes and bonds Constant maturities13 21 1-year 7.65 8.53 7.89 7.76 7.55 7.31 7.05 7.30 7.24 7.08 6.% 22 2-year 8.10 8.57 8.16 8.08 7.88 7.60 7.31 7.54 7.45 7.28 7.27 23 3-year 8.26 8.55 8.26 8.27 8.07 7.74 7.47 7.68 7.57 7.40 7.42 24 5-year 8.47 8.50 8.37 8.51 8.33 8.02 7.73 7.93 7.80 7.65 7.69 25 7-year 8.71 8.52 8.52 8.79 8.59 8.28 8.00 8.20 8.08 7.90 7.96 26 10-year 8.85 8.49 8.55 8.89 8.72 8.39 8.08 8.29 8.16 7.97 8.03 27 30-year 8.% 8.45 8.61 9.03 8.86 8.54 8.24 8.44 8.32 8.13 8.20 Composite 28 Over 10 years (long-term) 8.98 8.58 8.74 9.11 8.93 8.60 8.31 8.50 8.37 8.19 8.27 State and local notes and bonds Moody's series15 29 Aaa 7.36 7.00 6.% 7.18 7.23 6.75 6.63 6.78 6.81 6.52 6.60 3 3 0 1 Bo B nd a a B uyer series16 7 7. . 8 6 3 8 7 7 . . 2 4 3 0 7 7 . . 2 2 7 9 7 7. . 4 4 8 3 7 7 . . 4 4 9 3 7 7. . 2 1 2 8 7 7. . 1 0 0 9 7 7 . . 0 2 8 0 7 7. . 1 0 2 6 7 7 . . 0 0 5 9 7 7 . . 1 1 1 0 Corporate bonds Seasoned issues 32 All industries 10.18 9.66 9.77 10.02 10.03 9.85 9.63 9.76 9.68 9.58 9.62 33 Aaa 9.71 9.26 9.32 9.56 9.53 9.30 9.05 9.20 9.13 9.03 9.02 34 Aa 9.94 9.46 9.56 9.77 9.77 9.59 9.39 9.52 9.45 9.33 9.38 35 A 10.24 9.74 9.82 10.09 10.06 9.88 9.64 9.78 9.68 9.58 9.62 36 Baa 10.83 10.18 10.36 10.64 10.74 10.62 10.43 10.53 10.46 10.37 10.44 37 A-rated, recently offered utility bonds 10.20 9.79 10.01 10.28 10.23 10.07 9.95 10.03 9.91 9.92 9.96 MEMO: Dividend/price ratio 38 Preferred stocks 9.23 9.05 n.a. 9.05 9.10 8.88 8.72 8.92 8.80 8.72 8.67 39 Common stocks 3.64 3.45 n.a. 3.85 4.01 3.91 3.74 3.87 3.74 3.74 3.75 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 IInnddiiccaattoorr 11998888 11998899 11999900 Apr. May June July Aug. Sept. Oct. Nov. Dec. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 149.97 180.13 183.48 185.61 191.35 196.68 196.61 181.45 173.22 168.05 172.21 179.57 2 Industrial 180.83 228.04 225.81 226.86 234.85 242.42 245.86 226.73 216.81 208.58 212.81 221.86 3 Transportation 134.09 174.90 158.64 173.54 173.53 177.37 173.18 147.41 136.95 131.99 132.% 141.31 4 Utility 72.22 94.33 90.61 91.92 93.29 93.65 89.85 85.81 83.30 87.27 89.69 91.56 5 Finance 127.41 162.01 133.23 138.57 142.94 147.93 143.11 128.14 118.59 108.01 113.76 122.18 6 Standard & Poor's Corporation (1941-43 = 10)1 265.88 323.05 334.63 338.18 350.25 360.39 360.03 330.75 315.41 307.12 315.29 328.75 7 American Stock Exchange (Aug. 31, 1973 = 50p 295.08 356.67 338.36 353.32 353.82 361.62 359.09 333.49 318.53 296.67 294.88 305.54 Volume of trading (thousands of shares) 8 New York Stock Exchange 161,386 165,568 156,842 140,062 163,486 153,634 160,490 174,446 142,054 159,590 149,916 155,836 9 American Stock Exchange 9,955 13,124 13,155 13,961 14,005 12,421 12,529 15,881 11,668 11,294 10,368 11,620 Customer financing (end-of-period balances, in millions of dollars) 10 Margin credit at broker-dealers 32,740 34,320 28,315 31,060 31,600 31,720 32,130 30,350 29,640 28,650 27,820 28,315 Free credit baltmces at brokers4 11 Margin-account5 5,660 7,040 8,050 6,465 6,215 6,490 6,385 7,140 7,285 7,245 7,300 8,050 12 Cash-account 16,595 18,505 19,390 15,375 15,470 15,625 17,035 16,745 16,185 15,820 17,025 19,390 Margin requirements (percent of market value and effective date)6 Mar. 11, 1968 June 8, 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 13 Margin stocks 70 80 65 55 65 50 14 Convertible bonds 50 60 50 50 50 50 15 Short sales 70 80 65 55 65 50 1. Effective July 1976, includes a new financial group, banks and insurance "margin securities" (as defined in the regulations) when such credit is collatercompanies. With this change the index includes 400 industrial stocks (formerly alized by securities. Margin requirements on securities other than options are the 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40 difference between the market value (100 percent) and the maximum loan value of financial. collateral as prescribed by the Board. Regulation T was adopted effective Oct. 15, 2. Beginning July 5, 1983, the American Stock Exchange rebased its index 1934; Regulation U, effective May 1, 1936; Regulation G, effective Mar. 11, 1968; effectively cutting previous readings in half. and Regulation X, effective Nov. 1, 1971. 3. Beginning July 1983, under the revised Regulation T, margin credit at On Jan. 1, 1977, the Board of Governors for the first time established in broker-dealers includes credit extended against stocks, convertible bonds, stocks Regulation T the initial margin required for writing options on securities, setting acquired through exercise of subscription rights, corporate bonds, and govern- it at 30 percent of the current market-value of the stock underlying the option. On ment securities. Separate reporting of data for margin stocks, convertible bonds, Sept. 30,1985, the Board changed the required initial margin, allowing it to be the and subscription issues was discontinued in April 1984. same as the option maintenance margin required by the appropriate exchange or 4. Free credit balances are in accounts with no unfulfilled commitments to the self-regulatory organization; such maintenance margin rules must be approved by brokers and are subject to withdrawal by customers on demand. the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC 5. New series beginning June 1984. approved new maintenance margin rules, permitting margins to be the price of the 6. These regulations, adopted by the Board of Governors pursuant to the option plus 15 percent of the market value of the stock underlying the option. Securities Exchange Act of 1934, limit the amount of credit to purchase and carry Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Nonfinancial Statistics • March 1991 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1990 AAccccoouunntt 11998888 11998899 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. SAIF-insured institutions 1 Assets 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 1,140,300 2 Mortgages 764,513 733,729 727,559 721,450 717,687 715,416 770088,,553388 669911,,224444 668899,,770000 677,217 3 Mortgage-backed securities 214,587 170,532 169,414 167,260 167,683 166,167 165,725 159,172 115577,,111133 155,499 4 Contra-assets to mortgage assets' . 37,950 25,457 24,162 22,729 23,073 21,991 21,977 20,344 23,390 0 5 Commercial loans 33,889 32,150 31,911 31,770 31,069 30,931 30,352 28,753 28,482 20,100 6 Consumer loans 61,922 58,685 57,321 56,821 56,805 56,639 55,658 55,171 54,655 53,200 7 Contra-assets to nonmortgage loans . 3,056 3,592 2,251 2,279 2,476 2,229 1,766 1,976 1,966 0 n.a. n.a. 8 Cash and investment securities 186,986 166,053 160,519 157,314 162,313 153,346 152,393 155,688 149,368 152,700 9 Other3 129,610 116,955 116,206 115,480 113,341 112,071 108,904 106,924 108,643 0 10 Liabilities and net worth . 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 1,140,300 11 Savings capital 971,700 945,656 933,835 926,439 929,910 916,069 902,642 890,497 884,963 864,800 12 Borrowed money 299,400 252,230 252,942 248,135 246,875 246,646 241,983 230,169 222,441 219,500 13 FHLBB 134,168 124,577 121,732 120,633 117,489 115,620 114,047 109,733 106,127 104,200 14 Other 165,232 127,653 131,210 127,502 129,386 131,026 127,936 120,436 116,314 115,300 15 Other 24,216 27,556 26,987 28,0% 25,997 27,352 28,767 25,166 26,746 n. a. 16 Net worth n.a. 23,612 22,754 22,417 20,568 20,296 24,361 28,805 28,455 0 SAIF-insured federal savings banks 17 Assets 425,966 498,522 583,063 581,983 595,644 593,345 570,795 583,392 587,521 18 Mortgages 230,734 283,844 331,503 330,366 332,995 333,300 331177,,998855 323,516 327,330 19 Mortgage-backed securities 64,957 70,499 76,765 77,016 80,059 81,030 77,781 78,001 78,033 20 Contra-assets to mortgage assets' . 13,140 13,548 12,309 11,615 11,844 11,590 10,798 10,200 13,849 21 Commercial loans 16,731 18,143 20,310 20,244 20,366 20,324 19,713 19,683 19,815 22 Consumer loans 24,222 28,212 20,310 20,244 20,365 20,324 32,407 32,745 33,308 23 Contra-assets to nonmortgage loans . 889 1,193 949 986 1,001 908 707 970 999 n.a. n.a. n.a. 24 Finance leases plus interest 880 1,101 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 25 Cash and investment ... 61,029 64,538 70,742 70,054 76,158 72,618 70,999 75,081 71,795 26 Other 35,412 39,981 45,444 46,238 46,371 46,180 44,840 47,723 45,996 27 Liabilities and net worth . 425,966 498,522 583,063 581,983 595,644 593,345 570,795 583,392 587,521 28 Savings capital 298,197 360,547 418,555 419,246 433,000 429,469 413,009 427,379 432,387 29 Borrowed money 99,286 108,448 126,398 124,171 126,253 126,240 123,415 121,721 119,998 30 FHLBB 46,265 57,032 63,516 63,026 63,550 63,120 61,057 60,666 61,442 31 Other 53,021 51,416 62,882 61,145 62,703 63,120 62,358 61,055 58,556 32 Other 8,075 9,041 9,770 10,347 9,435 9,982 10,307 8,889 9,508 33 Net worth 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 1990 AAccccoouunntt 11998888 11998899 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Credit unions4 34 Total assets/liabilities and capital 174,593 183,688 183,301 186,119 192,718 193,208 195,020 195,302 194,523 196,625 197,272 35 Federal 114,566 120,666 120,489 122,885 126,690 127,250 128,648 128,142 127,564 128,715 129,086 36 State 60,027 63,022 62,812 63,234 66,028 65,958 66,372 67,160 66,959 67,910 68,186 37 Loans outstanding 113,191 122,608 122,332 121,968 121,660 122,616 123,205 123,968 124,343 126,156 127,341 n a. 38 Federal 73,766 80,272 80,041 79,715 79,407 80,205 80,550 81,063 81,063 82,040 82,823 39 State 39,425 42,336 42,291 42,253 42,253 42,411 42,655 42,905 43,280 44,116 44,518 40 Savings 159,010 167,371 166,629 168,609 175,942 175,745 176,701 178,127 176,360 178,081 177,532 41 Federal 104,431 109,653 109,818 111,246 115,714 115,554 116,402 116,717 115,305 116,411 115,469 42 State 54,579 57,718 56,811 57,363 60,228 60,191 60,299 61,408 61,056 61,670 62,063 Life insurance companies5 43 Assets 1,166,870 1,299,756 Securities 44 Government.. 84,051 77,297 45 United States6 58,564 52,517 46 State aqd local 9,136 9,028 47 Foreign 16,351 15,752 48 Business 660,416 764,521 49 Bonds 556,043 638,907 50 Stocks 104,373 125,614 51 Mortgages 232,863 254,215 52 Real estate 37,371 39,908 53 Policy loans 54,236 57,439 54 Other assets 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic NonfinancialS tatistics • March 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 July Aug. Sept. Oct. Nov. Dec. U.S. budget1 1 Receipts, total 908,166 990,701 1,031,463 72,357 78,486 102,874 78,711 72,819 102,266 2 On-budget 666,675 727,035 749,809 50,446 56,284 78,542 58,751 47,843 82,425 3 Off-budget 241,491 263,666 281,654 21,911 22,202 24,332 19,960 24,976 19,841 4 Outlays, total 1,063,318 1,144,020 1,251,850 98,280 131,206 82,026 110,172'' 120,871r 109,650 5 On-budget 860,627 933,109 1,026,785 79,833 89,717 80,613 91,26C 99,423r 95,118 6 Off-budget 202,691 210,911 225,065 18,447 41,489 1,413 18,912 21,448 14,532 7 Surplus, or deficit (-), total -155,152 -153,319 -220,387 -25,924 -52,719 20,848 -31,461' -48,052' -7,384 8 On-budget -193,952 -206,074 -276,976 -29,388 -33,432 -2,071 -32,509' -51,58c -12,693 9 Off-budget 38,800 52,755 56,589 3,464 -19,287 22,919 1,048 3,528 5,309 Source of financing (total) 10 Borrowing from the public 166,139 141,806 264,453 24,230 47,329 -2,595 32,265 46,776 19,700 11 Operating cash (decrease, or increase (-)) . -7,962 3,425 818 9,862 2,433 17,832 4,720 12,533 -9,286 12 Other -3,025 8,088 -44,884 -8,168 2,957 -421 -5,524r -11,257r -3,030 MEMO 13 Treasury operating balance (level, end of period) 44,398 40,973 40,155 24,756 22,323 40,155 35,435 22,902 32,188 14 Federal Reserve Banks 13,023 13,452 7,638 6,369 4,453 7,638 7,607 5,495 8,960 15 Tax and loan accounts 31,375 27,521 32,517 18,387 17,869 32,517 27,828 17,406 23,228 1. In accordance with the Balanced Budget and Emergency Deficit Control Act international monetary fund; other cash and monetary assets; accrued interest of 1985, all former off-budget entries are now presented on-budget. The Federal payable to the public; allocations of special drawing rights; deposit funds; Financing Bank (FFB) activities are now shown as separate accounts under the miscellaneous liability (including checks outstanding) and asset accounts; agencies that use the FFB to finance their programs. The act has also moved two seigniorage; increment on gold; net gain/loss for U.S. currency valuation adjustsocial security trust funds (Federal old-age survivors insurance and Federal ment; net gain/loss for IMF valuation adjustment; and profit on the sale of gold. disability insurance trust funds) off-budget. SOURCE. Monthly Treasury Statement of Receipts and Outlays of the U.S. 2. Includes SDRs; reserve position on the U.S. quota in the IMF; loans to Government and the Budget of the U.S. Government. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A29 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1 Millions of dollars Calendar year Fiscal Fiscal Source or type year year 1990 1989 1990 H2 HI Oct. RECEIPTS 1 All sources 990,701 1,031,462 527,574 470,329 548,977 507,513 78,711 72,819 102,266 2 Individual income taxes, net 445,690 466,884 233,572 218,706 243,087 230,745 40,691 27,156 46,471 4 6 3 5 P W R N r e o e i f t n s h u i w h d n i e e d t l n s h d t h ia e l l d E lection Campaign Fund . 3 1 7 6 5 0 1 4 , , , 5 3 8 6 8 3 3 7 6 9 2 3 1 7 9 4 2 0 9 , , , 8 4 1 1 8 8 3 7 0 9 2 1 1 6 7 2 2 4 1 , , , 2 2 5 5 2 3 6 1 8 0 3 1 3 9 7 3 3 , , , 8 3 2 9 0 9 8 3 6 3 1 1 6 1 9 4 7 0 , , , 8 6 2 3 7 1 3 8 5 9 0 20 3 8 7 1 , , , 4 4 7 5 6 2 5 9 8 3 3 3 7 , ,7 8 9 7 6 5 7 3 0 0 27 1 1 , , , 5 9 6 0 5 0 5 6 0 6 4 2 4 , , 6 6 5 0 9 6 5 4 0 0 Corporation income taxes 7 Gross receipts 117,015 110,017 61,585 52,269 58,830 54,044 3,691 2,132 23,425 8 Refunds 13,723 16,510 7,259 6,842 8,326 7,603 2,077 837 902 9 Social insurance taxes and contributions net 359,416 380,047 200,127 162,574 210,476 178,468 26,598 33,723 25,480 10 Employment taxes and contributions 332,859 353,891 184,569 152,407 195,269 167,224 25,144 31,209 24,918 11 Self-employment taxes and 0 0 0 contributions 18,504 21,795 16,371 1,947 19,017 2,638 12 Unemployment insurance 22,011 21,635 13,279 7,909 12,929 8,996 1,082 2,098 217 13 Other net receipts4 4,546 4,522 2,277 2,260 2,278 2,249 373 416 345 14 Excise taxes 34,386 35,345 16,814 16,799 18,153 17,535 3,011 2,953 3,005 15 Customs deposits 16,334 16,707 7,918 8,667 8,096 8,568 1,528 1,354 1,281 16 Estate and gift taxes 8,745 11,500 4,583 4,451 6,442 5,333 1,065 845 741 17 Miscellaneous receipts5 22,839 27,470 10,235 13,704 12,222 20,423 4,203 5,494 2,765 OUTLAYS 18 All types 1,144,020 1,251,850 565,425 587,448 640,982 652,205 110,172' 120,871' 109,650 19 National defense 303,559 299,335 148,098 149,613 152,733 153,757 24,990 29,868 26,021 2 2 2 2 2 0 1 2 3 4 A G I N E n n g e a t e n e r tu i r r e c g n 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 s i r p a s a n c d e , e n a v n i d r o t n ec m h e n n o t logy . 1 1 1 9 3 6 2 6 , , , , , 5 7 8 9 1 0 7 3 4 82 2 4 8 8 1 1 1 1 2 7 3 4 1 , , , , , 4 0 7 4 9 7 0 6 2 9 0 9 0 0 8 6 6 2 7 9 , , , , , 5 2 2 0 6 6 2 3 2 1 7 1 8 2 9 7 9 5 4 1 , , , , , 0 1 9 1 4 9 7 8 3 4 1 1 3 2 9 6 6 7 7 1 , , , , , 9 7 3 4 2 7 7 4 5 1 4 0 3 0 6 8 8 9 6 , , , , 0 8 9 8 9 8 7 3 7 7 1 8 0 8 9 1 1 1 , , , 7 5 6 4 6 0 7 1 0 5 5 9 6 9 1 4 3 1 1 , , , , 9 1 2 2 9 9 0 3 6 0 4 3 1 9 3 2 1 1 , , , 7 4 1 1 8 4 8 3 9 1 2 6 8 0 25 Commerce and housing credit 29,091 67,495 4,129 22,295 38,672 38,154 8,590 4,276 5,083 26 Transportation 27,608 29,495 12,953 14,982 13,754 16,218 2,780 2,494 2,919 27 Community and regional development .. 5,361 8,466 1,833 4,879 3,987 3,939 912 1,325 -37 28 Education, training, employment, and social services 36,694 37,479 18,083 18,663 19,537 18,988 3,660 3,120 3,863 29 Health 48,390 58,101 24,078 25,339 29,488 31,424 5,491 5,235 5,206 30 Social security and medicare 317,506 346,383 162,195 162,322 175,997 176,353 28,339 29,973 29,301 31 Income security 136,031 148,299 70,937 67,950 78,475 75,948 12,819 13,758 13,904 32 Veterans benefits and services 30,066 29,112 14,891 14,864 15,217 15,479 2,899 4,033 2,446 33 Administration of justice 9,422 10,076 4,801 4,963 4,983 5,397 983 1,050 860 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 3,8580 n 4 . , a 7 . 60 n 4 . , a 9 . 16 n 6 . , a 9 . 82 n 1 . , a 2 . 2 7 n 1 . , a 8 . 7 5 n.a 9 . 7 6 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 1 - 1 3 6 7 9 , , 2 3 1 1 2 7 - 1 3 8 6 3 , , 6 7 1 9 5 0 -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 9 9 4 , , 8 6 2 5 9 0 - 1 3 4 , , 2 7 2 4 2 4 - 1 2 5 , , 7 1 7 3 5 8 - 1 2 6 ,8 ,3 9 6 1 2 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 NonfinancialS tatistics • March 1991 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1988 1989 1990 IItteemm Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 1 Federal debt outstanding 2,707.3 2,763.6 2,824.0 2,881.1 2,975.5 3,081.9 3,175.5 3,266.1 n.a. 2 Public debt securities 2,684.4 2,740.9 2,799.9 2,857.4 2,953.0 3,052.0 3,143.8 3,233.3 3,364.8 3 Held by public 2,095.2 2,133.4 2,142.1 2,180.7 2,245.2 2,329.3 2,368.8 2,437.6 n.a. 4 Held by agencies 589.2 607.5 657.8 676.7 707.8 722.7 775.0 795.8 n.a. 5 Agency securities 22.9 22.7 24.0 23.7 22.5 29.9 31.7 32.8 n.a. 6 Held by public 22.6 22.3 23.6 23.5 22.4 29.8 31.6 32.6 n.a. 7 Held by agencies .3 .4 .5 .1 .1 .2 .2 .2 n.a. 8 Debt subject to statutory limit 2,669.1 2,725.6 2,784.6 2,829.8 2,921.7 2,988.9 3,077.0 3,161.2 3,281.7 9 Public debt securities 2,668.9 2,725.5 2,784.3 2,829.5 2,921.4 2,988.6 3,076.6 3,160.9 3,281.3 10 Other debt1 .2 .2 .2 .3 .3 .3 .4 .4 .4 11 MEMO: Statutory debt limit 2,800.0 2,800.0 2,800.0 2,870.0 3,122.7 3,122.7 3,122.7 3,195.0 4,145.0 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 1990 Type and holder 1987 1988 1989 1990 Qi Q2 Q3 Q4 1 Total gross public debt 2,431.7 2,684.4 2,953.0 3,364.8 3,052.0 3,143.8 3,233.3 3,364.8 By type 2 Interest-bearing debt 2,428.9 2,663.1 2,931.8 3,362.0 3,029.5 3,121.5 3,210.9 3,362.0 3 Marketable 1,724.7 1,821.3 1,945.4 2,195.8 1,995.3 2,028.0 2,092.8 2,195.8 4 Bills 389.5 414.0 430.6 527.4 453.1 453.5 482.5 527.4 5 Notes 1,037.9 1,083.6 1,151.5 1,265.2 1,169.4 1,192.7 1,218.1 1,265.2 6 Bonds 282.5 308.9 348.2 388.2 357.9 366.8 377.2 388.2 7 Nonmarketable1 704.2 841.8 986.4 1,166.2 1,034.2 1,093.5 1,118.2 1,166.2 8 State and local government series 139.3 151.5 163.3 160.8 163.5 164.3 161.3 160.8 9 Foreign issues 4.0 6.6 6.8 43.5 37.1 36.4 36.0 43.5 10 Government 4.0 6.6 6.8 43.5 37.1 36.4 36.0 43.5 11 Public .0 .0 .0 .0 .0 .0 .0 .0 12 Savings bonds and notes 99.2 107.6 115.7 124.1 118.0 120.1 122.2 124.1 13 Government account series 461.3 575.6 695.6 813.8 705.1 758.7 779.4 813.8 14 Non-interest-bearing debt 2.8 21.3 21.2 2.8 22.4 22.3 22.4 2.8 By holder4 15 U.S. government agencies and trust funds 477.6 589.2 707.8 722.7 775.0 795.8 16 Federal Reserve Banks 222.6 238.4 228.4 219.3 231.4 232.5 17 Private investors 1,731.4 1,858.5 2,015.8 2,115.1 2,141.8' 2,207.3 18 Commercial banks 201.5 193.8 180.6 182.0 195.0 n.a. 19 Money market funds 14.6 11.8 14.4 31.3 28.1 n.a. 20 Insurance companies 104.9 107.3 107.9 108.0 n.a. n.a. 21 Other companies 84.6 87.1 98.7r n a. 102.2' 112.1 114.6 n a. 22 State and local Treasurys 284.6 313.6 337.1 342.0' n.a. n.a. Individuals 23 Savings bonds 101.1 109.6 117.7 119.9 121.9' 123.9 24 Other securities 71.3 79.2 93.8 95.0 n.a. n.a. 25 Foreign and international5 299.7 362.2 393.4 386.9 392.7 n.a. 26 Other miscellaneous investors 569.1 593.4' 672.5' 749.5' n.a. n.a. 1. Includes (not shown separately): Securities issued to the Rural Electrifica- 5. Consists of investments of foreign and international accounts. Excludes tion Administration; depository bonds, retirement plan bonds, and individual non-interest-bearing notes issued to the International Monetary Fund. retirement bonds. 6. Includes savings and loan associations, nonprofit institutions, credit unions, 2. Nonmarketable dollar-denominated and foreign currency-denominated se- mutual savings banks, corporate pension trust funds, dealers and brokers, certain ries held by foreigners. U.S. Treasury deposit accounts, and federally-sponsored agencies. 3. Held almost entirely by U.S. Treasury agencies and trust funds. SOURCES. Data by type of security, U.S. Treasury Department, Monthly 4. Data for Federal Reserve Banks and U.S. Treasury agencies and trust funds Statement of the Public Debt of the United States; data by holder and the are actual holdings; data for other groups are Treasury estimates. Treasury Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A31 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Millions of dollars, daily averages 1990 1990, week ending IItteemm Sept. Oct. Nov. Oct. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 Dec. 5 Dec. 12 Dec. 19 Dec. 26 IMMEDIATE TRANSACTIONS2 By type of security U.S. government securities 1 Bills 31,487' 31,703' 32,259 41,215' 31,843' 32,252 33,315 33,373 27,897 34,951 38,353 2277,,337733 Coupon securities 2 Maturing in less than 3.5 years .. 29,379 29,84c 33,722 35,995' 41,958 34,487 28,980 31,268 29,207 30,842 34,040 2222,,110077 3 Maturing in 3.5 to 7.5 years 22,872 25,896' 25,249 21,988 22,988 26,240 24,388 25,146 30,839 33,550 28,773 12,353 4 Maturing in 7.5 to 15 years 9,707 11,386 15,451 10,381 20,113' 20,286 12,856 9,189 13,845 15,248 13,104 7,169 5 Maturing in 15 years or more 10,850 13,365 15,364 10,897 15,097 20,230 15,643 10,697 14,837 18,638 15,853 6,898 Federal agency securities Debt 6 Maturing in less than 3.5 years .. 4,535 4,397 4,562 4,784 4,677 4,498 4,598 3,915 5,966 5,203 5,194 33,,881111 7 Maturing in 3.5 to 7.5 years 449 534 626 481 789 765 471 461 672 719 583 312 8 Maturing in 7.5 years or more .. 531 836 605 364 660 819 717 283 460 1,064 653 379 Mortgage-backed 9 Pass-throughs 9,146 9,005 8,646 9,557 10,145 7,323 7,194 9,209 10,428 14,447 15,097 1100,,779933 10 All others 1,149 1,247 1,440 1,590 1,171 1,512 1,648 1,482 1,304 2,263 1,262 1,020 By type of counterparty Primary dealers and brokers 11 U.S. government securities 6666,,009999'' 7700,,999988'' 7744,,551100 7733,,885522'' 8800,,222266'' 8811,,004411 7711,,226644 6666,,228866 7722,,556655 8822,,664411 8811,,555522 43,555 Federal agency 12 Debt securities 1,773 2,007 1,900 1,705 2,027 2,062 1,885 1,519 2,163 2,336 2,012 1,169 13 Mortgage backed securities ... 5,081 4,834 5,036 5,792 5,550 3,946 4,409 5,921 5,829 8,149 8,397 7,333 Customers 14 U.S. government securities 3388,,119977 4411,,119933'' 4477,,553355 4466,,662244'' 5511,,777744'' 5522,,445533 4433,,991188 4433,,338866 4444,,006600 5500,,558888 4488,,557700 32,344 Federal agency 15 Debt securities 3,742 3,760 3,894 3,923 4,099 4,020 3,901 3,139 4,934 4,649 4,417 3,332 16 Mortgage-backed securities ... 5,214 5,418 5,050 5,356 5,766 4,889 4,433 4,770 5,904 8,560 7,962 4,480 FUTURE AND FORWARD TRANSACTIONS4 By type of deliverable security U.S. government securities 17 Bills 44,,223377 33,,669944 55,,440022 44,,882266 44,,118877 44,,558822 55,,118822 66,,880011 77,,554400 88,,557777 44,,000099 1,852 Coupon securities 18 Maturing in less than 3.5 years .. 1,198 1,306 1,556 1,003 2,048 1,651 1,467 1,126 1,384 1,197 1,241 934 19 Maturing in 3.5 to 7.5 years 463 523 797 345 629 646 625 1,169 1,093 1,114 928 399 20 Maturing in 7.5 to 15 years 925 873 1,295 698 1,171 2,031 917 1,137 1,111 1,249 1,177 745 21 Maturing in 15 years or more 77,,773311 88,,995577 1100,,118855 66,,990022 1100,,442200 1122,,886666 1100,,001133 77,,772244 99,,447722 1100,,668899 99,,337777 44,,557722 Federal agency securities Debt 22 Maturing in less than 3.5 years .. 31 81 47 45 24 47 110 6 46 95 133 210 23 Maturing in 3.5 to 7.5 years 113 53 57 11 22 93 24 100 38 14 85 26 24 Maturing in 7.5 years or more .. 4455 9966 3366 8877 26 72 27 17 41 62 32 38 Mortgage-backed 25 Pass-throughs 7,607 8,427 9,025 7,350 7,717 13,008 9,531 6,793 6,651 9,302 8,057 4,226 26 All others 999 721 1,151 567 1,541 1,270 604 1,142 1,276 917 791 542 OPTION TRANSACTIONS6 By type of underlying securities U.S. government securities 27 Bills 3 6600 6633 63 21 25 55 177 0 104 0 50 Coupon securities 28 Maturing in less than 3.5 years .. 956 715 661 798 600 774 673 634 574 6% 754 453 29 Maturing in 3.5 to 7.5 years 309 223 240 234 183 345 174 279 187 630 167 94 30 Maturing in 7.5 to 15 years 190 182 202 72 225 304 91 212 136 564 201 100 31 Maturing in 15 years or more 11,,991188 22,,115522 22,,229999 11,,441177 22,,220066 22,,441100 22,,006677 22,,995566 11,,119955 11,,882299 11,,667766 11,,887722 Federal agency securities Debt 32 Maturing in less than 3.5 years .. 3 6 5 5 14 7 0 0 0 1 2 0 33 Maturing in 3.5 to 7.5 years 0 0 0 0 0 0 0 0 0 1 1 0 34 Maturing in 7.5 years or more .. 6 00 1 00 00 3 0 0 0 0 0 0 Mortgage-backed 35 Pass-throughs 383 482 370 390 289 653 354 178 386 815 277 110 36 All others 7 1 0 2 0 0 0 0 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 NonfinancialS tatistics • March 1991 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 1990 1990, week ending IItteemm Sept. Oct. Nov. Oct. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 Dec. 5 Dec. 12 Dec. 19 Dec. 26 Positions2 NET IMMEDIATE3 By type of security U.S. government securities 1 Bills 3,664 3,258 11,077 6,284 7,055 13,564 11,531 12,165 11,048 14,720 16,256 12,751 Coupon securities 2 Maturing in less than 3.5 years -352 -2,016 3,964 -1,326 4,103 2,471 2,349 6,978 3,813 4,154 7,911 10,434 3 Maturing in 3.5 to 7.5 years -5,090 -5,885 -6,343 -6,250 -7,004 -8,212 -6,707 -4,482 -2,727 -2,211 -2,160 -1,868 4 Maturing in 7.5 to 15 years -7,271 -6,987' -6,674 -7,253 -5,500 -5,479 -7,103 -8,381 -7,485 -8,021 -8,673 -7,187 5 Maturing in 15 years or more -14,195 -15,377 -10,609 -16,483 -14,403 -8,074 -10,259 -9,951 -9,725 -8,553 -9,987 -9,599 Federal agency securities Debt 6 Maturing in less than 3.5 years 4,047 4,169 4,471 3,314 5,015 4,240 4,222 4,318 4,788 3,188 4,108 4,032 7 Maturing in 3.5 to 7.5 years 1,797 1,737 1,662 1,512 1,702 1,532 1,608 1,627 2,285 2,091 2,183 2,143 8 Maturing in 7.5 years or more 2,128 4,115 4,656 4,640 5,145 4,673 4,494 4,376 4,438 4,409 4,473 4,465 Mortgage-backed 9 Pass-throughs 16,330 17,886 21,001 14,324 20,915 22,783 21,498 19,486 18,628 22,061 22,746 20,680 10 All others 0 0 0 0 0 0 0 0 0 0 0 0 Other money market instruments 11 Certificates of deposit 2,953 2,559 1,993 2,327 2,066 2,265 1,985 1,674 1,927 2,850 2,612 2,725 12 Commercial paper 7,307 6,423 5,995 6,845 6,352 6,436 5,774 5,641 5,217 8,517 6,695 7,816 13 Bankers' acceptances 954 1,214 1,407 1,668 1,609 1,584 1,460 1,048 1,157 879 902 693 FUTURE AND FORWARD5 By type of deliverable security U.S. government securities 14 Bills -ll,904r -17,120 -10,671 -19,207 -15,303 -14,015 -5,726 -7,454 -11,323 -17,066 -22,043 -21,009 Coupon securities 15 Maturing in less than 3.5 years -573 -685 -1,605 -742 -2,104 -1,818 -1,491 -1,336 -447 -750 -1,295 -2,231 16 Maturing in 3.5 to 7.5 years -1,403 -1,541 -890 -1,050 -258 -816 -821 -1,232 -2,406 -2,484 -3,614 -3,851 17 Maturing in 7.5 to 15 years 143 -982 -1,726 -814 -1,948 -2,101 -1,782 -1,160 -1,419 -1,847 -587 -456 18 Maturing in 15 years or more 90 -2,256 -5,330 -3,103 -3,999 -7,468 -5,326 -4,677 -4,804 -6,398 -5,390 -6,516 Federal agency securities Debt 19 Maturing in less than 3.5 years 132 166 69 180 77 99 42 37 145 282 208 149 20 Maturing in 3.5 to 7.5 years 76 96 45 29 86 24 48 38 -4 66 45 93 21 Maturing in 7.5 years or more 100 118 -35 156 2 42 -78 -78 -136 -238 -57 -76 Mortgage-backed 22 Pass-throughs -7,683 -8,186 -11,250 -5,919 -10,863 -13,126 -11,766 -9,589 -10,040 -9,847 -9,621 -8,133 23 All others 0 0 0 0 0 0 0 0 0 0 0 0 Other money market instruments 24 Certificates of deposit 56,474 86,147 85,459 91,599 104,748 92,247 84,906 68,405 55,816 47,634 46,620 49,743 25 Commercial paper 0 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 159,515 175,353 169,357 188,134 167,660 186,630 155,006 171,250 158,449 151,086 139,864 132,538 28 Term 219,855 226,083 224,231 231,045 243,113 227,169 222,034 207,174 215,257 217,800 218,034 216,107 Repurchase agreements 29 Overnight and continuing 235,588 248,211 235,064 250,874 246,770 266,824 179,908 244,198 244,003 239,361 245,899 242,359 30 Term 174,627 183,745 205,441 189,835 206,851 200,587 239,695 181,378 181,829 184,627 182,153 181,651 Securities borrowed 31 Overnight and continuing 50,783 50,122 48,043 50,536 48,173 46,334 47,273 48,897 53,270 57,229 56,689 54,971 32 Term 18,003 19,182 22,067 19,798 21,814 22,141 22,257 21,987 22,313 21,465 22,629 22,970 Securities lent 33 Overnight and continuing 22,156 20,897 19,173 19,286 18,468 18,584 19,204 18,950 24,381 26,811 29,846 28,481 34 Term 1,046 621 1,922 697 5,411 465 691 1,430 846 922 1,422 1,936 Collateralized loans 35 Overnight and continuing 4,870 4,421 4,434 4,652 3,849 5,036 3,916 4,832 4,790 5,715 6,318 7,449 36 Term 863 1,101 1,078 1,048 1,153 1,075 1,302 821 943 1,061 1,228 695 MEMO: Matched book7 Reverse repurchases 37 Overnight and continuing 102,856 110,533 105,308 114,7% 100,814 115,686 %,976 109,101 100,604 100,762 91,572 85,221 38 Term 178,083 179,414 179,011 180,545 194,837 184,261 173,933 165,374 117700,,775544 117755,,552277 117744,,993388 117700,,668800 Repurchases 39 Overnight and continuing 137,034 141,338 126,078 145,099 129,508 141,554 99,732 132,446 129,834 127,199 118,842 115,356 40 Term 137,764 142,489 152,980 147,338 159,324 154,490 163,100 140,003 135,487 138,562 132,258 130,387 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 A33 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1990 AAggeennccyy 11998866 11998877 11998888 11998899 July Aug. Sept. Oct. Nov. 1 Federal and federally sponsored agencies 307,361 341,386 381,498 411,805 420,529 421,554 421,308 431,519 430,842 2 Federal agencies 36,958 37,981 35,668 35,664 41,978 42,323 42,420 42,685 42,191 3 Defense Department1 33 13 8 7 7 7 7 7 7 4 Export-Import Bank • 14,211 11,978 11,033 10,985 11,150 11,150 11,346 11,346 11,346 5 Federal Housing Administration4 138 183 150 328 281 316 357 382 387 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 6,948 6,948 6,948 6,948 8 Tennessee Valley Authority 17,222 18,089 18,335 17,899 24,392 23,902 23,762 24,002 23,510 9 United States Railway Association 85 0 0 0 0 0 0 0 0 10 Federally sponsored agencies7 270,553 303,405 345,830 375,407 378,551 379,231 378,388 388,834 388,651 11 Federal Home Loan Banks 88,758 115,727 135,836 136,087 119,692 118,380 116,336 117,120 116,627 12 Federal Home Loan Mortgage Corporation 13,589 17,645 22,797 26,148 27,716 27,589 27,985 29,073 30,035 13 Federal National Mortgage Association 93,563 97,057 105,459 116,064 118,356 119,248 118,826 119,775 122,257 14 Farm Credit Banks8 62,478 55,275 53,127 54,864 53,175 54,015 54,382 56,788 53,469 15 Student Loan Marketing Association 12,171 16,503 22,073 28,705 32,218 32,605 33,376 33,592 33,777 16 Financing Corporation10 0 1,200 5,850 8,170 8,170 8,170 8,170 8,170 8,170 17 Farm Credit Financial Assistance Corporation11 0 0 690 847 1,172 1,172 1,261 1,261 1,261 18 Resolution Funding Corporation 0 0 0 4,522 18,052 18,052 18,052 23,055 23,055 MEMO 19 Federal Financing Bank debt13 157,510 152,417 142,850 134,873 162,443 166,017 173,318 180,538 177,620 Lending to federal and federally sponsored agencies 20 Export-Import Bank3 14,205 11,972 11,027 10,979 11,144 11,144 11,340 11,340 1111,,334400 21 Postal Service6 2,854 5,853 5,892 6,195 5,898 6,698 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 4,850 23 Tennessee Valley Authority 15,797 16,709 16,955 16,519 15,012 14,522 14,382 14,622 14,130 24 United States Railway Association 85 0 0 0 0 0 0 0 0 Other Lending14 25 Farmers Home Administration 65,374 59,674 58,4% 53,311 52,171 52,211 52,049 52,324 52,324 26 Rural Electrification Administration 21,680 21,191 19,246 19,265 19,066 19,043 19,042 18,966 18,968 27 Other 32,545 32,078 26,324 23,724 54,272 57,519 64,927 71,708 69,310 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. Off-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 Domestic Nonfinancial Statistics • March 1991 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1990 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11998877 11998888 11998899 May June' Julyr Aug/ Sept. Oct/ Nov/ Dec. 1 All issues, new and refunding1 102,407 114,522 113,646 ll,466r 13,323 8,513 10,899 13,930 8,434 9,961 12,250 Type of issue 2 General obligation 30,589 30,312 35,774 3,166 4,124 2,624 3,400 3,763 3,169 3,024 3,536 3 Revenue 71,818 84,210 77,873 8,866 9,199 5,889 7,499 10,167 5,265 6,937 8,714 Type of issuer 4 State 10,102 8,830 11,819 1,003 1,090 %5 1,568 2,317 1,470 1,337 1,3% 5 Special district and statutory authority 65,460 74,409 71,022 7,485 8,556 5,883 6,%2 8,188 4,521 5,879 7,032 6 Municipalities, counties, and townships 26,845 31,193 30,805 3,544 3,977 1,666 2,369 3,425 2,530 2,745 3,822 7 Issues for new capital, total 56,789 79,665 84,062 10,486 9,842 7,123 9,061 12,713 7,858 9,058 10,707 Use of proceeds 8 Education 9,524 15,021 15,133 1,694 1,962 1,413 1,345 1,472 1,667 1,009 1,418 9 Transportation 3,677 6,825 6,870 1,375 1,340 683 540 920 1,060 727 2,008 10 Utilities and conservation 7,912 8,4% 11,427 1,232 1,239 694 1,002 687 620 1,301 776 11 Social welfare 11,106 19,027 16,703 2,628 1,456 1,741 2,554 3,995 1,153 1,992 2,001 12 Industrial aid 7,474 5,624 5,036 681 415 509 700 674 445 540 933 13 Other purposes 18,020 24,672 28,894 2,155 3,430 2,083 2,919 4,%5 2,913 3,489 3,571 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,, oorr uussee 11998877 11998888 11998899 Apr. May June July Aug. Sept. Oct. Nov. 1 All issues1 392,261 410,713 376,171 15,346 25,204 28,900 19,975 13,750 14,633' 19,427r 22,635 2 Bonds2 325,753 352,912 318,300 13,590 22,853 26,027 17,728 12,942 14,207' 18,465' 21,400 Type of offering 3 Public, domestic 209,377 202,034 180,913 12,669 19,703 22,816 14,423 11,746 12,298' 16,600 19,900 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 22,758 921 3,150 3,211 3,305 1,1% 1,909 1,865' 1,500 Industry group 6 Manufacturing 60,657 70,575 76,345 3,612 2,580 3,812 1,838 861 2,246 2,804 5,180 7 Commercial and miscellaneous 49,773 62,089 49,307 683 1,171 2,999 1,728 223 117 446 400 8 Transportation 11,974 10,075 10,105 194 927 1,001 270 500 533 187 339 9 Public utility 22,991 19,528 17,059 435 1,004 2,561 703 835 1,000 831 2,222 10 Communication 7,340 5,952 8,503 500 326 411 137 35 268 242 520 11 Real estate and financial 173,018 184,692 156,983 8,167 16,845 15,243 13,052 10,488 10,043' 13,955' 12,739 12 Stocks2 66,508 57,802 57,870 1,756 2,351 2,873 2,247 808 426 962 1,235 Type 13 Preferred 10,123 6,544 6,194 193 665 310 350 145 100 550 265 14 Common 43,225 35,911 26,030 1,564 1,686 2,563 1,897 663 327 412 970 15 Private placement3 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 9,308 253 86 265 348 125 0 60 154 17 Commercial and miscellaneous 12,888 8,449 7,446 666 706 748 507 251 172 194 42 18 Transportation 2,439 1,535 1,929 0 22 21 0 71 0 7 0 19 Public utility 4,322 1,898 3,090 219 471 0 173 139 39 297 462 20 Communication 1,458 515 1,904 0 380 29 0 0 0 0 0 21 Real estate and financial 31,521 37,798 34,028 619 686 1,799 862 218 215 400 574 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 Apr. May June July Aug. Sept. Oct/ Nov. INVESTMENT COMPANIES1 1 Sales of own shares2 271,237 306,445 29,788 27,431 28,301 29,444 29,227 23,387 27,511 25,793 2 Redemptions of own shares3 267,451 272,165 27,306 23,337 23,340 22,933 24,837 21,053 23,112 22,086 3 Net sales 3,786 34,280 2,482 4,094 4,961 6,511 4,390 2,334 4,399 3,707 4 Assets4 472,297 553,871 542,061 574,302 582,190 586,526 554,722 535,787 538,306 557,676 5 Cash position5 45,090 44,780 55,213 52,741 49,861 48,944 51,103 51,128 51,847 52,835 6 Other 427,207 509,091 486,848 521,560 532,329 537,582 503,619 484,659 486,459 504,841 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 Q1 Q2 Q3 Q4 Q1 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 275.3 316.7 307.7 331.1 335.1 314.6 291.4 289.8 296.9 299.3 318.5 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 •Trade and services are no longer being reported separately. They are included 2. "Other" consists of construction; wholesale and retail trade; finance and in Commercial and other, line 10. insurance; personal and business services; and communication. 1. Anticipated by business. SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic Nonfinancial Statistics • March 1991 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities1 Billions of dollars, end of period 1989 1990 AAccccoouunntt 11998855 11998866 11998877 Q1 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 TTyyppee June July Aug. Sept. Oct. Nov. 1 Total 205,992 234,578 258,504 273,786 277,616 283,043 285,654 287,921 287,819 Retail financing of installment sales 2 Automotive 36,139 36,957 39,139 39,716 38,931 38,610 38,470 39,150 38,600 3 Equipment 25,075 28,199 29,674 30,491 30,623 30,707 30,607 30,487 30,729 4 Pools of securitized assets n.a. n.a. 698 642 800 987 946 902 927 Wholesale 5 Automotive 30,070 32,357 33,074 31,815 33,158 34,429 37,082 35,258 33,111 6 Equipment 5,578 5,954 6,8% 9,495 9,929 9,812 9,791 10,698 10,847 7 All other 8,329 9,312 9,918 10,043 9,722 9,707 9,597 9,477 9,447 8 Pools of securitized assets n.a. n.a. 0 0 0 650 863 679 649 Leasing 9 Automotive 22,097 24,875 27,074 29,575 30,210 30,942 30,453 31,303 31,601 10 Equipment 43,493 57,658 68,112 74,916 76,316 78,714 79,158 80,833 81,427 11 Pools of securitized assets2 n.a. n.a. 1,247 1,547 1,760 1,703 1,655 1,724 1,884 12 Loans on commercial accounts receivable and factored commercial accounts receivable 18,170 18,103 19,081 19,869 20,077 19,974 20,538 20,740 21,652 13 All other business credit 17,042 21,162 23,590 25,677 26,089 26,809 26,495 26,670 26,944 Net change (during period) 14 Total 33,866 22,434 22,580 6,927 3,830 5,427 2,611 2,267 -101 Retail financing of installment sales 15 Automotive 9,925 819 2,182 471 -785 -321 -141 680 -549 16 Equipment 2,056 1,386 1,475 -144 132 84 -100 -120 243 17 Pools of securitized assets2 n.a. n.a. -26 20 158 187 -41 -44 25 Wholesale 18 Automotive 7,158 2,288 716 1,919 1,343 1,271 2,653 -1,823 -2,147 19 Equipment 250 377 940 67 434 -118 -21 907 149 20 All other 1,293 983 605 151 -321 -16 -110 -120 -29 21 Pools of securitized assets n.a. n.a. 0 0 0 650 213 -184 -30 Leasing 22 Automotive 2,174 2,777 2,201 6% 636 731 -488 850 298 23 Equipment 5,271 9,752 9,187 2,201 1,400 2,398 444 1,675 594 24 Pools of securitized assets n.a. n.a. 526 -50 213 -57 -48 69 160 25 Loans on commercial accounts receivable and factored commercial accounts receivable 2,245 -65 979 1,169 208 -103 564 202 912 26 All other business credit 3,498 4,119 3,7% 427 412 721 -314 175 273 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 Item 1988 1989 1990 June July Aug. Sept. Oct. Nov. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms1 1 Purchase price (thousands of dollars) 150.0 159.6 153.2 149.8 163.5 161.5 156.6 146.1 151.5 156.3 2 Amount of loan (thousands of dollars) 110.5 117.0 112.4 111.8 120.9 118.3 114.8 105.1 111.2 115.4 3 Loan/price ratio (percent) 75.5 74.5 74.8 76.4 75.3 74.5 74.7 73.5 75.0 74.9 4 Maturity (years) 28.0 28.1 27.3 26.9 28.0 27.2 27.2 26.9 27.1 28.6 5 Fees and charges (percent of loan amount) 2.19 2.06 1.93 1.96 1.93 2.07 1.78 1.80 1.68 1.85 6 Contract rate (percent per year) 8.81 9.76 9.68 9.80 9.75 9.75 9.60 9.68 9.61 9.45 Yield (percent per year) 7 OTS series3 9.18 10.11 10.01 10.13 10.08 1 ..1 9.90 9.98 9.90 9.76 8 HUD series4 10.30 10.21 10.08 10.12 9.94 J. 12 10.18 10.11 9.86 9.66 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (HUD series)5 10.49 10.24 10.17 10.18 10.11 10.28 10.24 10.23 9.81 9.66 10 GNMA securities6 9.83 9.71 9.52 9.54 9.48 9.63 9.65 9.66 9.46 9.08 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 101,329 104,974 113,329 112,855 113,378 113,507 113,718 114,216 111155,,008855 116,628 12 FHA/V A-insured 19,762 19,640 21,028 20,830 21,059 21,101 21,364 21,495 21,530 21,751 13 Conventional 81,567 85,335 92,302 92,025 92,319 92,406 92,354 92,721 93,555 94,877 Mortgage transactions (during period) 14 Purchases 23,110 22,518 23,959 1,802 2,304 2,134 2,123 2,077 2,078 2,410 Mortgage commitments7 15 Issued (during period)8 n.a. n.a. n.a. 2,089 2,215 2,302 2,073 1,849 2,426 2,104 16 To sell (during period)9 n.a. n.a. n.a. 853 874 761 644 92 0 0 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)9 17 Total 15,105 20,105 n.a. 19,979 20,127 20,564 20,508 20,790 n.a. n.a. 18 FHA/VA 620 590 n.a. 550 546 541 536 530 n.a. n.a. 19 Conventional 14,485 19,516 n.a. 19,429 19,581 20,023 19,972r 20,260 n.a. n.a. Mortgage transactions (during period) 20 Purchases 44,077 78,588 n.a. 5,856 4,527 5,417 5,798 6,118 n.a. n.a. 21 Sales 39,780 73,446 68,383 5,546 4,248 4,808 5,707 5,734 5,280 5,519 Mortgage commitments10 22 Contracted (during period) 66,026 88,519 n.a. 11,183 5,851 5,646 6,643 10,972 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 Financial Statistics • March 1991 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1989 1990 TTyyppee ooff hhoollddeerr,, aanndd ttyyppee ooff pprrooppeerrttyy 11998877 11998888 11998899 Q3 Q4 Ql Q2' QV 1 All holders 2,971,019 3,264,348 3,538,305' 3,472,516' 3,538,305' 3,599,880' 3,666,728 3,726,071 2 1- to 4-family 1,958,400 2,186,292 2,404,272r 2,347,563' 2,404,272' 2,449,981' 2,512,799 2,569,327 3 Multifamily 272,500 289,128 304,068' 301,16C 304,068' 308,865' 307,683 307,631 4 Commercial 651,323 702,113 744,626' 737,484' 744,626' 756,323' 761,698 764,933 5 88,797 86,816 85,339' 86,309' 85,339' 84,710 84,548 84,180 6 Selected financial institutions 1,657,937 1,826,668 1,918,938' 1,914,074' 1,918,938' 1,924,626' 1,925,053 1,917,435 7 Commercial banks 592,449 669,237 763,415' 742,442' 763,415' 783,379' 811,174 826,721 8 1- to 4-family 275,613 317,585 368,518' 355,0%' 368,518' 376,306' 395,082 403,142 9 Multifamily 32,756 33,158 37,996' 37,201 37,996' 39,127' 39,172 39,971 10 Commercial 269,648 302,989 340,204' 333,606' 340,204' 351,135' 359,747 366,085 11 Farm 14,432 15,505 16,697' 16,539 16,697' 16,811' 17,173 17,523 12 Savings institutions3 860,467 924,606 910,254 932,373 910,254 891,921' 860,540 835,219 13 1- to 4-family 602,408 671,722 669,220 683,148 669,220 658,405' 641,864 627,758 14 Multifamily 106,359 110,775 106,014 108,447 106,014 103,841' 97,314 92,479 15 Commercial 150,943 141,433 134,370 140,0% 134,370 129,056' 120,795 114,428 16 Farm 757 676 650 682 650 619 567 554 17 Life insurance companies 205,021 232,825 245,269' 239,259' 245,269' 249,326' 253,339 255,4% 18 1- to 4-family 12,676 15,299 13,812' 13,275' 13,812' 14,158' 14,560 15,038 19 Multifamily 21,644 23,583 27,174' 26,351' 27,174' 28,161' 29,247 30,207 20 Commercial 160,874 184,273 194,722' 190,003' 194,722' 197,472' 199,990 200,714 21 Farm 9,828 9,671 9,561' 9,630' 9,561' 9,535' 9,542 9,537 22 Finance companies 29,716 37,846 45,476 43,157 45,476 45,808 47,104 48,531 23 Federal and related agencies 192,721 200,570 209,498' 205,809 209,498' 216,146' 228,362 237,497 24 Government National Mortgage Association 444 26 23 24 23 22 21 20 25 1- to 4-family 25 26 23 24 23 22 21 20 26 Multifamily , 419 0 0 0 0 0 0 0 27 Farmers Home Administration5 43,051 42,018 41,176 41,117 41,176 41,125 41,175 41,330 28 1- to 4-family 18,169 18,347 18,422 18,405 18,422 18,419 18,434 18,445 29 Multifamily 8,044 8,513 9,054 8,916 9,054 9,199 9,361 9,513 30 Commercial 6,603 5,343 4,443 4,366 4,443 4,510 4,545 4,732 31 Farm 10,235 9,815 9,257 9,430 9,257 8,997 8,835 8,641 32 Federal Housing and Veterans Administration 5,574 5,973 6,087 6,023 6,087 6,355 6,792 6,912 33 1- to 4-family 2,557 2,672 2,875' 2,900 2,875' 3,027' 3,054 3,121 34 Multifamily 3,017 3,301 3,212' 3,123 3,212' 3,328' 3,738 3,790 35 Federal National Mortgage Association 96,649 103,013 110,721 107,052 110,721 112,353 112,855 114,828 36 1- to 4-family 89,666 95,833 102,295 99,168 102,295 103,300 103,431 105,466 37 Multifamily 6,983 7,180 8,426 7,884 8,426 9,053 9,424 9,362 38 Federal Land Banks 34,131 32,115 29,640 30,943 29,640 29,325 29,595 29,212 39 1- to 4-family 2,008 1,890 1,210 1,821 1,210 1,197 1,741 1,782 40 Farm 32,123 30,225 28,430 29,122 28,430 28,128 27,854 27,430 41 Federal Home Loan Mortgage Corporation 12,872 17,425 21,851 20,650 21,851 19,823 19,979 19,994 42 1- to 4-family 11,430 15,077 18,248 17,659 18,248 16,772 17,316 17,320 43 Multifamily 1,442 2,348 3,603 2,992 3,603 3,051 2,663 2,674 44 Mortgage pools or trusts6 718,297 810,887 942,432' 898,241' 942,432' 979,936' 1,020,293 1,064,675 45 Government National Mortgage Association 317,555 340,527 368,367' 360,097' 368,367' 376,%2' 385,456 393,879 46 1- to 4-family 309,806 331,257 358,142 349,838 358,142 366,300 374,960 383,532 47 Multifamily 7,749 9,270 10,225' 10,259' 10,225' 10,662' 10,496 10,347 48 Federal Home Loan Mortgage Corporation 212,634 226,406 272,870 257,938 272,870 281,736 295,340 309,415 49 1- to 4-family 205,977 219,988 266,060 251,232 266,060 274,084 287,232 300,931 50 Multifamily 6,657 6,418 6,810 6,706 6,810 7,652 8,108 8,484 51 Federal National Mortgage Association 139,960 178,250 228,232 208,894 228,232 246,391 263,330 283,415 52 1- to 4-family 137,988 172,331 219,577 200,302 219,577 237,916 254,811 274,675 53 Multifamily 1,972 5,919 8,655 8,592 8,655 8,475 8,519 8,740 54 Farmers Home Administration 245 104 80 82 80 76' 72 70 55 1- to 4-family 121 26 21 22 21 20 19 18 56 Multifamily 0 0 0 0 0 0 0 0 57 Commercial 63 38 26 26 26 25 24 24 58 Farm 61 40 33 35 33 31 30 28 59 Individuals and others7 402,064 426,223 467,438 454,392 467,438 479,172 493,021 506,464 60 1- to 4-family 242,053 258,639 292,967 283,445 292,%7 301,573 312,670 324,020 61 Multifamily 75,458 78,663 82,899 80,689 82,899 84,873 86,935 88,264 62 Commercial 63,192 68,037 70,861 69,387 70,861 72,136 72,868 73,713 63 Farm 21,361 20,884 20,711 20,871 20,711 20,589 20,548 20,467 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 Holder, and type of credit 1988 1989 Mar. Apr. May June July Aug. Sept. Oct/ Nov. Seasonally adjusted 1 Total 664,701 716,624 720,445 720,835 724,485 724,601 729,329 732,385 735,222 736,595 738,316 2 Automobile . 284,556 290,770 290,932 288,936 288,931 287,168 286,791 285,283 285,261 284,402 283,989 3 Revolving... 174,057 197,110 202,263 203,965 207,153 208,362 212,138 214,492 216,804 218,381 219,416 4 Mobile home 25,201 22,343 22,708 22,702 22,815 22,733 22,795 22,976 22,672 22,491 22,516 5 Other 180,887 206,401 204,543 205,232 205,585 206,338 207,605 209,635 210,484 211,320 212,395 Not seasonally adjusted 6 Total 674,719 727,561 713,138 715,801 720,045 722,953 727,196 734,511 737,260 737,252 739,303 By major holder 7 Commercial banks 324,792 343,865 334,645 337,576 339,328 335,998 339,124 342,987 344,941 344,875 345,132 8 Finance companies 146,212 140,832 137,857 138,174 138,384 138,642 138,7% 139,4% 140,890 141,329 139,195 9 Credit unions 88,340 90,875 89,556 89,689 89,913 90,137 90,631 91,306 91,311 91,406 91,108 10 Retailers2 48,302 42,638 37,302 37,207 37,347 37,382 36,804 37,231 36,682 36,047 37,470 11 Savings institutions 63,399 57,228 54,095 53,606 53,301 52,902 52,503 52,399 51,358 50,787 50,310 12 Gasoline companies 3,674 3,935 3,792 3,928 4,024 4,192 4,3% 4,722 4,723 4,718 4,701 13 Pools of securitized assets2 .. n.a. 48,188 55,891 55,621 57,748 63,700 64,942 66,370 67,355 68,089 71,387 By major type of credit3 14 Automobile 284,328 290,421 286,539 286,220 287,140 287,254 287,479 288,221 289,255 287,730 285,381 15 Commercial banks 123,392 126,613 126,289 126,483 127,056 126,988 126,986 128,079 128,937 128,133 126,561 16 Finance companies 97,245 82,721 79,523 79,295 78,927 78,273 77,716 77,205 78,116 78,033 75,224 17 Pools of securitized assets2 n.a. 18,191 19,563 19,406 20,151 21,043 21,692 21,562 21,239 20,786 23,175 18 Revolving 183,909 208,188 199,937 201,783 204,854 206,820 209,582 213,119 214,853 216,285 219,372 19 Commercial banks 123,020 130,956 122,024 124,039 125,433 122,116 124,569 125,%7 126,995 127,950 128,770 20 Retailers 43,697 37,967 32,794 32,721 32,857 32,884 32,325 32,735 32,212 31,601 32,993 21 Gasoline companies 3,674 3,935 3,792 3,928 4,024 4,192 4,3% 4,722 4,723 4,718 4,701 22 Pools of securitized assets2 n.a. 22,977 29,542 29,403 30,913 36,076 36,786 38,194 39,606 40,798 41,800 23 Mobile home 25,143 22,283 22,426 22,484 22,610 22,644 22,873 23,033 22,815 22,720 22,644 24 Commercial banks 9,025 9,155 9,142 9,231 9,295 9,2% 9,443 9,541 9,3% 9,363 9,349 25 Finance companies 7,191 4,716 5,178 5,168 5,224 5,266 5,328 5,358 5,423 5,400 5,364 26 Other 181,339 206,669 204,236 205,314 205,441 206,235 207,252 210,138 210,337 210,517 211,906 27 Commercial banks 69,355 77,141 77,190 77,823 77,544 77,598 78,126 79,400 79,613 79,429 80,452 28 Finance companies 41,776 53,395 53,156 53,711 54,233 55,103 55,752 56,933 57,351 57,8% 58,607 29 Retailers 4,605 4,671 4,508 4,486 4,490 4,498 4,479 4,4% 4,470 4,446 4,477 30 Pools of securitized assets2 n.a. 7,020 6,786 6,812 6,684 6,581 6,464 6,614 6,510 6,506 6,412 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 • March 1991 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1 Percent unless noted otherwise 1990 IItteemm 11998877 11998888 11998899 May June July Aug. Sept. Oct. Nov. INTEREST RATES Commercial banks2 1 48-month new car3 10.45 10.85 12.07 11.82 n.a. n.a. 11.89 n.a. n.a. 11.62 2 24-month personal 14.22 14.68 15.44 15.41 n.a. n.a. 15.46 n.a. n.a. 15.69 3 120-month mobile home3 13.38 13.54 14.11 14.09 n.a. n.a. 14.09 n.a. n.a. 13.99 4 Credit card 17.92 17.78 18.02 18.14 n.a. n.a. 18.18 n.a. n.a. 18.23 Auto finance companies 5 New car 10.73 12.60 12.62 12.23 12.58 12.68 12.62 12.34 12.57 12.74 6 Used car 14.60 15.11 16.18 16.03 16.00 15.% 15.98 16.03 16.12 16.07 OTHER TERMS4 Maturity (months) 7 New car 53.5 56.2 54.2 54.5 54.8 54.9 54.8 54.3 54.6 54.6 8 Used car 45.2 46.7 46.6 46.1 46.2 46.2 46.2 46.1 46.1 46.0 Loan-to-value ratio 9 New car 93 94 91 87 87 86 86 85 85 85 10 Used car 98 98 97 96 95 % % 95 95 95 Amount financed (dollars) 11 New car 11,203 11,663 12,001 12,064 12,108 12,125 11,939 11,837 11,917 11,986 12 Used car 7,420 7,824 7,954 8,169 8,296 8,401 8,415 8,403 8,423 8,494 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 Ql Q2 Q3 Q4 Ql Q2 Q3 Nonfinancial sectors 1 Total net borrowing by 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 sector and instrument 2 U.S. government 223.6 215.0 144.9 157.5 151.6 147.3 100.1 173.9 185.0 247.6 228.7 286.7 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 12 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 55.0 30.9 43.3 44.4 54.1 72.2 19 By borrowing sector 624.5 621.9 542.1 603.3 526.6 599.6 566.7 504.9 435.2 514.5 395.8 422.0 20 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 21 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 22 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 23 Farm -14.5 -16.3 -10.6 -7.5 1.6 4.7 -5.0 -2.1 8.9 4.3 -6.1 3.9 24 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 27 Bonds 3.8 3.1 7.4 6.9 5.3 2.5 11.5 8.1 -1.0 28.3 27.0 1.6 28 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 29 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 849.3 846.6 691.5 767.1 689.1 750.1 659.9 709.2 637.1 758.6 665.7 734.9 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 5500..99 82.9 78.9 51.7 36.8 52.3 28.5 26.7 39.6 37.7 64.1 39.5 39 Mortgages ..11 .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 Domestic NonfinancialS tatistics • March 1991 1.57—Continued 1989 1990 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11998855 11998866 11998877 11998888 11998899 Q1 Q2 Q3 Q4 Q1 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 28.9 99.9 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 668899..88 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 14.9 -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 -77.0 -118.9 -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 70 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 11998899 Q1 Q2 Q3 Q4 Q1 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 26i .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 i.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 1.9 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 176i .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 3 3 3 5 6 7 O C St o p a r e t p e n o a m r n a a d te r k l a o e n c t d a p l a f o o p b r e e l r i i g g a n t i b o o n n s ds 5 3 3 1 7 . . . 8 7 6 -1 5 9 2 9 . . . 9 9 9 6 2 1 1 3 5 . . . 8 3 8 - 5 3 9 3 6 . . . 4 5 4 28 5 . . . 4 4 7 -1 4 5 6 6 7 . . . 5 7 3 1 5 9 7 . . . 1 4 8 - 3 2 4 9 1 . . . 7 0 4 -6 1 1 4 2 4 . . . 6 8 6 2 4 8 3 . . . 4 3 9 4 1 9 3 4 . . . 2 2 1 - - 1 2 1 9 9 2 i ' . . . 2 8 l 38 Other 19.6 51.7 27.6 32.2 27.1 32.5 29.2 16.4 30.1 42.7 31.1 40i .l 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 -33.0 -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 1201 .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 i.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 K! 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 1.9 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 47.1 381 .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 203i .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 .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 .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 .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 .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 .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 • March 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 9,096.0 9,267.7 9,438.7 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 7,112.0 7,273.0 7,399.0 7,535.8 7,614.8 7,734.6 7,839.2 6 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 7 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 542.6 669.4 748.8 851.7 866.3 887.9 903.5 925.4 936.5 953.3 962.8 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 3,596.6 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 14 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 i; Open market paper 72.2 62.9 73.8 85.7 96.1 110.1 113.3 107.1 126.0 128.7 131.8 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 7,112.0 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 2,596.1 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 22 Nonfinancial business 2,434.2 2,724.8 2,945.6 3,182.2 3,241.7 3,322.5 3,357.6 3,400.0 3,436.1 3,478.0 3,496.1 23 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 9,690.8 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 261.2 328.1 378.8 446.1 464.3 478.0 481.2 496.2 500.3 511.1 529.9 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 Q2 Q3 Q4 QL Q2 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 10,309.4 By public agencies and foreign ? Total held 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 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 11,,332288..00 11,,337722..99 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 9,102.3 9,233.0 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 7.1 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 74 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 77 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 79 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 V 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 2,425.3 2,495.1 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 66,,558877..77 66,,666633..00 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 44,,333366..22 33,,776699..77 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 21/line 14. 27. Line 40 less lines 41 and 47. 51. Sum of lines 11 and 30. 28. Excludes equity issues and investment company shares. Includes line 20. 52-54. Includes issues by financial institutions. 30. Foreign deposits at commercial banks plus bank borrowings from foreign NOTE. Full statements for sectors and transaction types in flows and in amounts affiliates, less claims on foreign affiliates and deposits by banking in foreign banks. outstanding may be obtained from Flow of Funds Section, Stop 95, Division of 31. Demand deposits and note balances at commercial banks. Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • March 1991 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1990 MMeeaassuurree 11998888 11998899 11999900 Apr. May June July Aug. Sept. Oct.' Nov.' Dec. 1 Industrial production (1987 = 100)' 105.4 108.1 109.1 108.8 109.4 110.1 110.4 110.5 110.6' 109.8 107.8 107.1 Market groupings 2 Products, total (1987 = 100) 105.3 108.6 110.1 109.8 110.5 110.9 110.9 110.9 111.4' 110.8 108.9 108.5 3 Final, total (1987 = 100) 105.6 109.1 110.9 110.4 111.2 111.7 111.7 111.9 112.6' 112.1 109.9 109.6 4 Consumer goods (1987 = 100) 104.0 106.7 107.3 107.2 107.4 107.8 107.5 107.8 108.7' 108.4 106.1 106.1 5 Equipment (1987 = 100) 107.6 112.3 115.5 114.7 116.2 116.8 117.2 117.2 117.8 117.0 114.8 114.2 6 Intermediate (1987 = 100) 104.4 106.8 107.6 108.0 108.3 108.3 108.4 107.9 107.4' 106.8 105.8 105.1 7 Materials (1987 = 100) 105.6 107.4 107.7 107.3 107.7 108.8 109.6 109.7 109.4' 108.2 106.0 104.9 Industry groupings 8 Manufacturing (1987 = 100) 105.8 108.9 109.9 109.5 110.3 110.8 111.1 111.1 111.2' 110.5 108.5 107.5 Capacity utilization (percent)2 9 Manufacturing 83.9 83.9 82.2 82.5 82.8 83.0 83.0 82.8 82.7' 81.9 80.2 79.3 10 Construction contracts (1982 = 100)3 166.7 172.9 153.1 149.0' 165.0' 164.0' iss.o' 149.0' 146.0' 147.0 146.0 130.0 11 Nonagricultural employment, total4 128.0 131.6 133.8 133.6 134.1 134.4 134.3 134.1 134.1 133.9 133.6 133.5 12 Goods-producing, total 103.7 105.3 102.7 103.4 103.5 103.4 103.1 102.8 102.4 101.8 100.7 100.4 13 Manufacturing, total 98.6 99.6 96.8 97.5 97.4 97.3 97.2 96.9 96.6 96.3 95.2 95.1 14 Manufacturing, production- worker ... 93.7 94.6 91.5 92.3 92.1 92.0 92.0 91.7 91.2 90.9 89.7 89.5 15 Service-producing 138.2 142.7 146.8 146.2 147.0 147.4 147.3 147.3 147.4 147.4 147.4 147.3 16 Personal income, total 253.2 272.7 289.0 286.4 287.5 288.7 290.1 290.8 292.2 292.1 293.2 295.3 17 Wages and salary disbursements 244.6 258.9 272.2 269.9 271.2 272.8 274.4 274.5 276.4 274.8 274.6 277.3 18 Manufacturing 196.5 203.1 205.0 203.9 205.8 206.8 206.9 206.7 207.0 206.0 203.0 204.7 19 Disposable personal income 252.2 270.1 286.1 283.6 284.4 285.8 286.9 287.6 288.7 288.7 289.8 291.7 20 Retail sales 228.0 240.6 249.9 246.3 246.1 248.9 250.1 250.2 252.4 252.7 252.5 251.6 Prices7 21 Consumer (1982-84 = 100) 118.3 124.0 130.7 128.9 129.2 129.9 130.4 131.6 132.7 133.5 133.8 133.8 22 Producer finished goods (1982 = 100) ... 108.0 113.6 119.2 117.2 117.7 117.8 118.2 119.3r 120.3 122.3 122.9 121.9 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 11998888 11998899 11999900 May June July Aug. Sept. Oct.' Nov.' Dec. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 186,837 188,601 190,216 189,983 190,122 190,275 190,411 190,568 190,717 190,854 190,999 2 Labor force (including Armed Forces)1 123,893 126,077 126,954 127,094r 126,942' 126,848' 126,855' 127,137' 127,067 126,880 127,307 3 Civilian labor force 121,669 123,869 124,787 124,939' 124,797' 124,709' 124,705' 124,970' 112244,,887755 112244,,772233 125,174 Employment 4 Nonagricultural industries 111,800 114,142 114,728 114,991' 114,958' 114,774' 114,538' 114,689' 114,558 114,201 114,321 5 Agriculture 3,169 3,199 3,186 3,286' 3,279' 3,108' 3,152' 3,194' 3,175 3,185 3,253 Unemployment 6 Number 6,701 6,528 6,874 6,662' 6,560' 6,827' 7,015' 7,087' 7,142 7,337 7,600 7 Rate (percent of civilian labor force) 5.5 5.3 5.5 5.3 5.3' 5.5 5.6 5.7 5.7 5.9 6.1 8 Not in labor force 62,944 62,524 63,262 62,889' 63,18(y 63,427' 63,556' 63,431' 63,650 63,974 63,692 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 105,584 108,573 110,330 110,617 110,829 110,740 110,613 110,612 110,432 110,173 110,097 10 Manufacturing 19,403 19,611 19,064 19,167 19,148 19,131 19,084 19,019 18,951 18,747 18,714 11 Mining 721 722 735 738 744 745 735 736 733 736 742 12 Contract construction 5,125 5,302 5,205 5,286 5,270 5,229 5,194 5,176 5,093 5,023 4,995 13 Transportation and public utilities 5,548 5,703 5,838 5,833 5,846 5,841 5,846 5,870 5,870 5,865 5,876 14 Trade 25,139 25,807 26,151 26,164 26,205 26,225 26,222 26,214 26,147 26,084 26,022 15 Finance 6,676 6,814 6,833 6,838 6,844 6,842 6,852 6,851 6,843 6,834 6,831 16 Service 25,600 26,889 28,209 28,094 28,225 28,287 28,387 28,440 28,475 28,545 28,576 17 Government 17,372 17,726 18,299 18,497 18,547 18,440 18,293 18,306 18,320 18,339 18,341 1. Persons 16 years of age and over. Monthly figures, which Eire 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 • March 1991 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1990 Ql Q2 Q3' Q4 Ql Q2 Q3 Q4 Ql Q2 Q3' Q4 Output (1987 = 100) Capacity (percent of 1987 output) Utilization rate (percent) 1 Total industry 108.3 109.4 110.5 108.2 130.3 131.2 132.1 133.0 83.1 83.4 83.6 81.4 2 Manufacturing 109.2 110.2 111.1 108.8 132.1 133.2 134.2 135.3 82.6 82.8 82.8 80.5 3 Primary processing 106.4 106.3 107.6 104.2 124.2 124.9 125.7 126.5 85.7 85.1 85.6 82.4 4 Advanced processing 110.5 112.1 112.8 111.0 135.8 137.0 138.2 139.3 81.4 81.8 81.6 79.7 5 Durable 110.4 112.4 113.6 110.0 136.2 137.2 138.3 139.3 81.0 81.9 82.1 78.9 6 Lumber and products 105.1 102.3 101.5 96.5 123.2 124.1 125.0 125.9 85.3 82.5 81.2 76.6 7 Primary metals 106.1 107.4 112.2 106.5 127.2 127.3 127.4 127.6 83.4 84.3 88.0 83.5 8 Iron and steel 107.1 107.5 114.3 108.5 131.9 132.0 132.1 132.2 81.2 81.4 86.5 82.1 9 Nonferrous 104.6 107.1 109.2 103.6 120.4 120.6 120.9 121.1 86.9 88.8 90.3 85.6 10 Nonelectrical machinery 124.4 126.7 128.5 125.8 151.6 153.2 154.9 156.6 82.1 82.7 83.0 80.3 11 Electrical machinery 111.1 112.2 112.4 110.8 137.4 138.8 140.2 141.6 80.9 80.8 80.2 78.2 12 Motor vehicles and parts 91.5 102.6 103.7 89.0 132.5 133.5 134.5 135.4 69.0 76.9 77.2 65.8 13 Aerospace and miscellaneous transportation equipment ... 111.6 113.6 114.5 112.9 133.4 134.3 135.2 136.1 83.6 84.6 84.7 83.0 14 Nondurable 107.7 107.5 108.1 107.4 126.9 128.0 129.0 130.1 84.8 84.0 83.7 82.6 15 Textile mill products 101.1 102.4 101.3 97.9 116.0 116.6 117.1 117.6 87.2 87.9 86.6 83.3 16 Paper and products 103.9 104.5 107.2 105.2 113.9 114.7 115.5 116.2 91.2 91.1 92.9 90.5 17 Chemicals and products 109.9 109.9 110.8 109.5 133.4 134.7 135.9 137.2 82.4 81.6 81.5 79.8 18 Plastics materials 111.7 116.3 117.2 117.6 126.1 128.4 130.6 132.9 88.6 90.6 89.7 88.5 19 Petroleum products 109.9 106.0 110.0 105.6 121.1 121.1 121.1 121.1 90.8 87.5 90.8 87.2 20 Mining 101.3 102.5 103.4 102.4 115.7 115.2 114.8 114.4 87.6 88.9 90.1 89.5 21 Utilities 105.7 107.8 110.5 107.1 126.0 126.4 126.7 127.1 83.9 85.3 87.2 84.2 22 Electric 108.4 111.0 112.9 109.8 121.1 121.6 122.1 122.6 89.5 91.3 92.4 89.6 Previous cycle2 Latest cycle3 1989 1990 High Low High Low Dec. May June July Aug. Sept/ Oct/ Nov/ Dec Capacity utilization rate (percent) 23 Total industry 89.2 72.6 87.3 71.8 83.7 83.4 83.7 83.8 83.6 83.5 82.7 81.0 80.4 24 Manufacturing 88.9 70.8 87.3 70.0 82.8 82.8 83.0 83.0 82.8 82.7 81.9 80.2 79.3 25 Primary processing 92.2 68.9 89.7 66.8 85.2 84.9 85.5 86.0 85.9 84.9 83.9 82.3 80.9 26 Advanced processing 87.5 72.0 86.3 71.4 81.8 82.0 81.9 81.7 81.4 81.7 81.1 79.3 78.6 77 Durable 88.8 68.5 86.9 65.0 81.4 82.1 82.4 82.2 82.1 82.0 80.8 78.7 77.3 28 Lumber and products 90.1 62.2 87.6 60.9 86.8 81.9 82.0 83.1 80.4 80.1 77.6 76.2 76.1 29 Primary metals 100.6 66.2 102.4 46.8 80.8 83.4 86.0 86.6 89.9 87.6 84.9 85.1 80.4 30 Iron and steel 105.8 66.6 110.4 38.3 76.1 79.9 83.6 83.7 89.6 86.2 83.1 85.1 78.0 31 Nonferrous 92.9 61.3 90.5 62.2 88.0 88.8 89.8 90.9 90.5 89.6 87.8 85.1 83.9 32 Nonelectrical machinery 96.4 74.5 92.1 64.9 82.2 82.8 82.9 83.1 83.1 82.7 81.9 80.3 78.8 33 Electrical machinery 87.8 63.8 89.4 71.1 80.7 81.0 81.0 80.3 80.3 80.0 78.5 78.1 78.1 34 Motor vehicles and parts 93.4 51.1 93.0 44.5 74.8 77.9 80.7 76.6 75.1 79.8 76.7 63.4 57.1 35 Aerospace and miscellaneous transportation equipment.. 77.0 66.6 81.1 66.9 82.5 84.5 84.5 85.4 84.4 84.3 84.0 82.7 82.2 36 Nondurable 87.9 71.8 87.0 76.9 84.5 83.9 83.8 84.0 83.7 83.5 83.4 82.3 82.0 37 Textile mill products 92.0 60.4 91.7 73.8 86.3 88.1 88.8 88.0 85.7 85.9 85.3 82.7 81.8 38 Paper and products 96.9 69.0 94.2 82.0 91.1 90.7 90.6 93.5 92.2 92.9 92.0 89.6 89.7 39 Chemicals and products 87.9 69.9 85.1 70.1 81.2 81.1 81.6 81.5 81.7 81.3 80.8 79.6 79.0 40 Plastics materials 102.0 50.6 90.9 63.4 80.6 90.9 90.0 90.5 89.7 88.9 90.0 88.7 86.8 41 Petroleum products 96.7 81.1 89.5 68.2 86.1 86.4 87.9 91.3 91.0 90.3 89.7 87.4 84.6 42 Mining 94.4 88.4 96.6 80.6 86.3 88.7 88.8 90.5 89.2 90.6 89.4 89.2 89.9 43 Utilities 95.6 82.5 88.3 76.2 92.3 84.7 86.8 86.6 87.9 87.0 85.8 82.7 84.2 44 Electric 99.0 82.7 88.3 78.7 96.2 90.7 92.9 91.9 93.0 92.3 91.4 87.9 89.4 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 pro- 1990 Groups por- avg. tion Jan. Feb. Mar. Apr. May June July Aug. Sept/ Oct/ Nov/ Dec.'' Index (1987 = 100) MAJOR MARKET 1 Total index 100.0 109.1 108.6 107.5 108.5 108.9 108.8 109.4 110.1 110.4 110.5 110.6 109.8 107.8 107.1 2 Products 60.8 110.1 109.7 108.4 109.4 110.1 109.8 110.5 110.9 110.9 110.9 111.4 110.8 108.9 108.5 3 Final products 46.0 110.9 110.3 108.5 109.7 110.7 110.4 111.2 111.7 111.7 111.9 112.6 112.1 109.9 109.6 4 Consumer goods 26.0 107.3 108.3 106.0 107.0 107.5 107.2 107.4 107.8 107.5 107.8 108.7 108.4 106.1 106.1 5 Durable consumer goods 5.6 106.3 106.8 99.4 106.2 110.8 107.3 109.3 112.1 108.3 107.4 110.4 106.9 99.7 96.8 6 Automotive products 2.5 102.3 104.5 85.2 99.3 109.3 102.4 107.0 112.2 106.7 104.6 111.8 106.9 93.7 87.4 7 Autos and trucks 1.5 97.4 100.1 66.3 92.7 107.7 95.8 105.6 112.9 104.8 101.5 113.0 107.2 84.2 74.6 8 Autos, consumer .9 92.2 92.6 62.1 86.9 100.5 87.7 96.8 103.8 98.0 97.2 111.5 104.3 80.7 77.2 9 Trucks, consumer .6 106.1 112.6 73.3 102.3 120.0 109.3 120.4 128.3 116.1 108.8 115.4 112.2 90.2 70.2 10 Auto parts and allied goods.. 1.0 109.8 111.2 113.6 109.4 111.6 112.2 108.9 111.2 109.5 109.3 110.0 106.5 108.0 106.7 11 Other 33..11 109.5 108.6 110.6 111.6 112.0 111.2 111.1 112.0 109.5 109.6 109.3 106.9 104.4 104.3 12 Appliances, A/C, and TV.... ..88 102.1 101.0 108.4 107.8 108.1 104.4 103.6 107.5 100.2 101.9 101.0 94.6 91.0 90.1 13 Carpeting and furniture .9 104.8 102.0 103.7 104.7 105.9 107.5 107.6 107.8 106.0 104.9 106.0 103.8 99.8 99.4 14 Miscellaneous home goods .. 1.4 116.6 117.1 116.2 118.2 118.0 117.3 117.5 117.2 116.9 116.8 116.1 115.7 114.7 115.4 15 Nondurable consumer goods 20.4 107.6 108.7 107.8 107.2 106.6 107.1 106.9 106.6 107.3 107.9 108.2 108.8 107.8 108.6 16 Foods and tobacco 9.1 105.9 106.4 105.5 106.2 105.8 105.6 105.2 104.4 105.1 105.7 105.3 106.5 107.5 108.2 17 Clothing 2.6 95.8 99.4 100.6 99.6 97.0 96.0 96.4 95.7 95.6 94.6 95.3 94.2 92.4 92.5 18 Chemical products 3.5 113.1 110.3 112.7 112.0 111.0 113.5 113.0 112.8 112.4 114.3 115.1 115.3 112.5 113.4 19 Paper products 2.5 119.7 116.9 116.2 117.6 116.4 118.1 118.6 118.3 120.3 119.3 121.9 123.0 122.3 122.8 20 Energy 2.7 105.5 115.2 107.9 101.5 103.1 104.1 104.1 105.3 106.7 109.0 108.0 108.8 103.9 105.5 21 Fuels .7 102.9 100.5 105.1 106.6 101.8 101.6 98.2 102.6 104.6 106.0 105.6 104.0 100.4 98.3 22 Residential utilities 2.0 106.5 120.7 109.0 99.6 103.6 105.0 106.3 106.3 107.5 110.0 108.9 110.6 105.2 108.2 23 Equipment, total 20.0 115.5 112.9 111.8 113.3 114.9 114.7 116.2 116.8 117.2 117.2 117.8 117.0 114.8 114.2 24 Business equipment 13.9 123.0 119.9 118.0 120.1 122.2 121.6 123.5 124.4 125.0 125.4 126.4 125.3 122.5 121.4 25 Information processing and related . 5.6 124.0 124.0 124.7 126.0 126.4 126.6 126.3 128.0 128.5 129.5 130.1 128.7 126.9 26 Office and computing 1.9 148.8 142.7 142.7 144.3 147.2 149.3 148.9 150.6 152.7 152.2 153.6 153.4 146.5 142.7 27 Industrial 4.0 112.8 113.5 113.4 113.9 114.2 115.8 116.0 117.2 117.9 117.4 115.4 115.2 113.5 28 Transit 2.5 129L6 123.4 111.4 122.7 130.6 126.2 132.5 137.4 135.5 135.4 140.5 137.4 125.3 120.5 29 Autos and trucks 1.2 97.6 69.6 91.7 104.5 95.2 105.7 112.2 103.1 101.5 111.0 106.5 83.9 75.3 30 Other 1.9 118.5 118.7 117.4 117.8 117.6 119.4 119.9 119.2 119.8 118.5 117.0 117.2 117.1 31 Defense and space equipment 5.4 9X4 96.6 97.5 97.6 97.5 97.3 97.6 97.6 97.8 97.7 97.3 97.3 96.4 96.9 32 Oil and gas well drilling .6 109.0 100.3 98.3 100.1 106.0 114.3 118.6 119.5 116.2 106.9 107.4 107.1 109.7 107.3 33 Manufactured homes .2 91.6 91.6 94.3 92.9 89.7 91.3 92.8 90.0 93.4 91.8 89.0 87.3 83.4 34 Intermediate products, total 14.7 107.6 107.9 108.0 108.4 108.2 108.0 108.3 108.3 108.4 107.9 107.4 106.8 105.8 105.1 35 Construction supplies 6.0 105.1 107.4 107.9 108.2 107.3 106.4 105.5 106.0 106.7 105.3 103.8 102.5 101.3 99.8 36 Business supplies 8.7 109.3 108.2 108.0 108.5 108.9 109.1 110.2 109.8 109.5 109.7 109.9 109.7 109.0 108.9 37 Materials, total 39.2 107.7 106.9 106.2 107.1 107.1 107.3 107.7 108.8 109.6 109.7 109.4 108.2 106.0 104.9 38 Durable goods materials 19.4 111.7 110.4 109.4 110.8 110.9 110.9 112.5 113.8 114.0 114.9 114.1 112.4 109.7 107.2 39 Durable consumer parts 4.2 104.0 102.5 96.5 102.8 104.5 103.2 108.5 108.5 108.1 110.4 109.0 106.3 99.0 90.5 40 Equipment parts 7.3 118.1 115.8 116.5 117.6 117.6 117.4 118.1 119.1 119.2 119.4 119.8 118.4 117.2 117.6 41 Other 7.9 110.0 109.5 109.7 108.7 108.1 108.9 109.6 111.8 112.4 113.1 111.6 110.1 108.4 106.6 42 Basic metal materials 2.8 111.7 109.3 108.5 109.9 107.5 110.2 109.2 113.6 115.5 116.3 115.8 111.9 112.0 108.9 43 Nondurable goods materials 9.0 105.9 104.3 105.4 105.8 105.2 106.1 105.2 106.1 107.8 106.8 106.9 106.2 105.0 104.4 44 Textile materials 1.2 96.5 95.8 94.6 96.2 94.9 95.6 97.4 99.4 100.2 97.8 98.1 96.3 93.3 92.0 45 Pulp and paper materials 1.9 106.1 103.7 105.0 105.3 103.0 106.0 104.5 104.8 109.0 106.9 109.4 108.6 106.1 105.9 46 Chemical materials 3.8 106.6 103.8 105.8 107.3 107.5 107.4 105.4 107.3 108.5 108.0 106.6 105.7 105.3 104.2 47 Other 2.1 109.8 110.4 110.9 108.8 108.7 109.8 109.8 108.8 109.9 109.3 110.1 110.7 110.1 110.3 48 Energy materials 10.9 101.9 102.7 101.2 101.7 102.0 101.8 101.1 102.1 103.3 103.0 103.0 102.2 100.2 101.3 49 Primary energy 7.2 100.9 99.0 101.1 102.1 101.2 100.3 100.1 101.2 103.3 102.1 101.0 100.6 98.9 99.5 50 Converted fuel materials 3.7 103.7 110.0 101.4 100.9 103.4 104.6 102.9 103.9 103.4 104.9 107.0 105.3 102.6 104.8 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.3 109.5 108.9 108.6 108.9 109.0 109.2 109.5 110.0 110.6 110.7 110.6 109.9 108.4 108.0 52 Total excluding motor vehicles and parts.. 95.3 109.7 109.1 109.0 109.2 109.2 109.5 109.7 110.2 110.8 110.9 110.7 110.1 108.8 108.6 53 Total excluding office and computing machines 97.5 108.1 107.7 106.6 107.6 108.0 107.8 108.4 109.1 109.3 109.4 109.5 108.7 106.8 106.2 54 Consumer goods excluding autos and trucks 24.5 107.9 108.8 108.4 107.8 107.5 107.9 107.6 107.5 107.6 108.2 108.4 108.5 107.4 108.0 55 Consumer goods excluding energy 23.3 107.5 105.8 107.6 108.0 107.5 107.8 108.1 107.6 107.7 108.7 108.6 106.6 105.8 56 Business equipment excluding autos and trucks 12.7 125.6 122.1 122.8 122.9 124.0 124.2 125.3 125.6 127.2 127.8 128.0 127.2 126.3 125.9 57 Business equipment excluding office and computing equipment 12.0 118.9 116.2 114.0 116.2 118.2 117.2 119.4 120.2 120.5 121.1 122.0 120.8 118.6 118.0 58 Materials excluding energy 28.4 109.9 108.4 108.1 109.2 109.1 109.4 110.2 111.4 112.1 112.3 111.8 110.4 108.2 106.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • March 1991 2.13—Continued 1987 1989 1990 Groups c S o I d C e p p r o o r - - a 1 v 99 g 0 . tion Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept/ Oct/ Nov/ Dec.' Index (1987 = 100) MAJOR INDUSTRY 1 Total index. 100.0 109.1 108.6 107.5 108.5 108.9 108.8 109.4 110.1 110.4 110.5 110.6 109.8 107.8 2 Manufacturing 84.4 109.9 108.8 108.1 109.6 109.8 109.5 110.3 110.8 111.1 111.1 111.2 110.5 108.5 3 Primary processing .. 26.7 106.1 105.3 106.2 106.9 106.0 105.9 106.1 107.0 107.9 108.0 106.9 105.9 104.1 4 Advanced processing 57.7 111.6 110.4 109.0 110.9 111.7 111.3 112.4 112.6 112.5 112.5 113.2 112.7 110.5 Durable 47.3 111.6 110.4 108.6 110.7 111.9 111.1 112.6 113.4 113.4 113.5 113.8 112.4 109.6 Lumber and products .. 24 2.0 101.7 106.4 106.0 104.3 105.0 103.3 101.7 102.0 103.6 100.5 100.3 97.5 96.0 Furniture and fixtures .. 25 1.4 106.0 105.1 105.1 104.8 105.9 107.6 108.0 108.7 108.0 106.7 106.9 104.1 103.4 Clay, glass, and stone products 32 2.5 105.4 108.6 110.0 108.0 107.7 105.1 106.4 106.1 106.0 106.6 104.5 103.7 102.1 Primary metals 33 3.3 108.2 102.6 105.0 107.9 105.4 106.4 106.2 109.5 110.3 114.6 111.6 108.3 108.6 Iron and steel 331,2 1.9 109.6 100.3 104.6 110.6 106.1 106.7 105.5 110.3 110.6 118.3 113.9 109.8 112.5 Raw steel .1 109.4 97.6 109.9 109.0 105.9 104.9 107.6 111.8 113.9 118.5 111.6 112.8 109.5 Nonferrous 333-6,9 1.4 106.2 105.8 105.6 104.0 104.3 105.9 107.1 108.3 109.8 109.4 108.4 106.2 103.0 Fabricated metal products 5.4 105.9 106.3 105.1 105.6 105.5 105.0 107.1 106.7 107.7 107.9 106.8 105.9 103.9 Nonelectrical machinery. 8.6 126.4 123.8 123.7 124.2 125.2 125.7 126.9 127.5 128.3 128.8 128.5 127.8 125.7 Office and computing machines 357 2.5 148.8 142.7 142.7 144.3 147.3 149.3 149.0 150.6 152.7 152.2 153.6 153.3 146.5 Electrical machinery ... 36 8.6 111.6 110.1 110.1 111.0 112.3 111.3 112.4 112.8 112.2 112.5 112.5 110.8 110.6 Transportation equipment 37 9.8 105.4 104.4 94.7 103.5 107.9 105.1 109.0 111.0 109.3 107.9 111.1 109.1 99.9 Motor vehicles and parts 371 4.7 96.8 98.7 76.8 94.1 103.5 95.8 104.0 108.0 102.7 101.0 107.5 103.7 85.9 Autos and light trucks 2.3 99.0 65.7 91.8 106.7 94.6 104.3 111.6 103.8 100.9 112.8 107.1 83.7 20 erospace and miscellaneous transportation equipment.. 372-6,9 5.1 113.1 109.6 111.0 111.9 111.9 113.4 113.5 113.8 115.2 114.1 114.2 114.0 112.5 Instruments 38 3.3 117.0 114.8 116.0 116.2 115.7 115.8 116.5 115.0 116.9 117.5 118.4 118.5 117.9 Miscellaneous manufacturers. 39 1.2 120.1 116.4 117.0 118.1 118.6 118.6 119.1 119.6 120.4 121.8 121.3 121.4 122.0 23 Nondurable 37.2 107.7 106.7 107.5 108.3 107.2 107.5 107.4 107.6 108.1 108.1 108.0 108.2 107.1 24 Foods 8.8 107.6 108.0 106.8 107.4 107.1 107.0 106.8 106.1 107.1 107.7 107.6 108.5 109.2 25 Tobacco products 1.0 98.5 98.5 101.3 102.3 100.0 98.8 97.2 95.6 98.5 96.3 96.4 97.2 99.1 26 Textile mill products ... 1.8 100.8 99.8 100.6 103.0 99.8 100.9 102.7 103.6 102.9 100.4 100.7 100.1 97.3 27 Apparel products 2.4 98.9 102.6 102.4 102.1 99.8 98.7 99.2 99.3 99.2 98.8 98.4 97.2 95.9 28 Paper and products 3.6 105.2 103.4 103.8 105.0 102.8 105.3 104.0 104.2 107.8 106.5 107.5 106.8 104.2 29 Printing and publishing . 6.4 111.9 109.6 110.7 112.1 111.4 112.0 112.8 112.0 111.4 110.9 111.6 112.6 112.5 30 Chemicals and products 8.6 110.1 107.6 109.9 110.5 109.5 110.3 109.2 110.3 110.4 111.1 110.9 110.6 109.2 31 Petroleum products 1.3 107.8 104.3 108.6 112.0 109.1 106.8 104.6 106.5 110.5 110.2 109.3 108.6 105.8 32 Rubber and plastic products 3.0 109.9 110.1 110.7 109.1 109.8 109.0 110.9 112.8 110.9 112.0 110.3 110.8 107.2 33 Leather and products .. .3 99.6 103.0 104.3 102.9 103.3 102.6 103.5 102.0 102.5 99.6 100.3 95.3 88.2 34 Mining 7.9 102.4 100.1 101.7 101.0 101.1 102.9 102.2 102.2 104.0 102.4 103.9 102.4 102.1 35 Metal 10 .3 152.5 155.5 144.8 143.4 141.4 152.7 148.7 156.7 164.8 155.7 163.6 146.1 149.2 36 Coal 11,12 1.2 113.4 103.5 114.1 111.9 112.9 114.2 110.0 113.5 118.5 110.2 116.8 114.7 112.9 37 Oil and gas extraction 13 5.7 95.3 94.0 94.4 94.1 94.6 95.7 96.0 94.6 95.5 95.8 95.8 95.6 95.8 38 Stone and earth minerals . 14 .7 119.3 119.7 121.2 120.0 116.5 120.2 119.9 121.1 121.8 120.1 121.7 117.6 114.4 39 Utilities... 7.6 107.6 116.1 106.8 104.0 106.2 106.7 107.1 109.7 109.7 111.4 110.3 109.0 105.1 40 Electric. 491,3PT 6.0 110.5 116.3 108.3 107.1 109.7 109.7 110.3 113.1 112.1 113.6 112.9 111.9 107.8 41 Gas .... 492,3PT 1.6 97.1 115.6 101.2 92.3 93.3 95.5 95.2 97.4 100.7 103.3 100.9 98.1 95.3 SPECIAL AGGREGATES 42 Manufacturing excluding motor vehicles and parts 79.8 109.3 109.9 110.5 110.2 110.3 110.7 111.0 111.6 111.7 111.4 111.1 110.2 43 Manufacturing excluding office and computing machines 82.0 107.7 107.1 108.6 108.7 108.3 109.2 109.6 109.8 109.9 110.0 109.4 107.7 Gross value (billi ons of 1') 82 dolla rs, annu il rates) MAJOR MARKET 44 Products, total 1734.8 1,908.9 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 1,941.6 1,931.9 1,873.7 45 Final 1350.9 1,495.6 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 1,529.1 1,517.0 1,463.8 46 Consumer goods 833.4 881.3 898.6 864.3 888.6 893.4 883.9 885.9 893.8 886.0 885.9 895.2 888.0 859.6 47 Equipment 517.5 614.3 594.0 583.6 599.8 614.1 610.0 620.1 629.6 622.7 630.4 633.9 628.9 604.2 48 Intermediate 384.0 413.3 413.0 415.7 415.0 415.1 412.3 416.2 413.6 414.9 413.1 412.5 414.9 409.9 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 Feb. Mar. Apr. May June July Aug. Sept.' Oct.' Nov. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,535 1,456 1,339 1,297 1,232 1,108 1,065 1,108 1,082 1,050 992 920 906 7 1-family 1,024 994 932 974 912 813 802 796 780 762 737 708 671 3 2-or-more-family 511 462 407 323 320 295 263 312 302 288 255 212 235 4 Started 1,621 1,488 1,376 1,488 1,307 1,216 1,206 1,189 1,153 1,131 1,106 1,026 1,127 5 1-family 1,146 1,081 1,003 1,154 996 898 897 889 875 836 859 839 768 6 2-or-more-family 474 407 373 334 311 318 309 300 278 295 247 187 359 7 Under construction, end of period1 . 987 919 850 900 887 876 857 849 833 815 792 769 767 8 1-family 591 570 535 575 567 559 546 540 529 517 505 497 492 9 2-or-more-family 397 350 315 325 320 317 311 309 304 298 287 272 275 10 Completed 1,669 1,530 1,423 1,351 1,378 1,295 1,363 1,295 1,300 1,314 1,333 1,257 1,179 11 1-family 1,123 1,085 1,026 1,041 1,037 942 1,008 946 981 954 970 914 886 12 2-or-more-family 546 445 396 310 341 353 355 349 319 360 363 343 293 13 Mobile homes shipped 233 218 198 200 193 189 191 191 184 195 181 188 181 Merchant builder activity in 1-family units 14 Number sold 672 675 650 606 558 533 536 550 541 527" 550077 449922 550066 15 Number for sale, end of period 366 367 362 366 363 363 360 354 351 345 339 334 327 Price (thousands of dollars)2 Median 16 Units sold 104.7 113.3 120.4 126.9 119.4 130.0 125.0 125.0 118.7 118.4" 111122..22 112200..00 112211..55 17 Units sold 127.9 139.0 148.3 150.9 144.6 153.4 150.6 150.4 149.8 144.7" 142.1 153.2 146.5 EXISTING UNITS (1-family) 18 Number sold 3,530 3,594 3,439 3,400 3,400 3,330 3,300 3,330 3,330 3,500 3,170 3,050 3,150 Price of units sold (thousands of dollars) 19 Median 85.6 89.2 93.0 95.2 96.3 95.6 9955..66 9977..55 98.3 9977..11 9944..44 9922..99 9911..88 20 Average 106.2 112.5 118.0 118.3 119.5 117.8 118.7 121.1 122.0 120.5 116.7 115.9 115.5 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 410,209 422,076 432,068 455,571 457,272 444,737 443,805 441,088 437,010" 436,338" 423,941 425,071 422,446 ?? 319,641 327,102 333,514 343,118 347,366 338,780 333,992 329,556 331,269" 323,518" 317,516 313,0% 306,592 73 Residential 194,656 198,101 196,551 203,013 206,868 200,234 196,055 189,462 187,083" 184,409" 179,713 178,303 173,839 24 Nonresidential, total 124,985 129,001 136,963 140,105 140,498 138,546 137,937 140,094 144,186" 139,109" 137,803 134,793 132,753 Buildings 75 Industrial 13,707 14,931 18,506 21,072 21,086 21,039 20,847 20,405 23,609" 2200,,223399"" 19,862 19,616 2200,,113388 76 55,448 58,104 59,389 58,748 57,210 55,765 54,698 56,581 56,951" 55,347' 53,648 51,751 49,683 ?7 Other 15,464 17,278 17,848 16,964 17,646 18,227 18,379 19,272 19,792" 19,801' 20,267 19,728 19,446 28 Public utilities and other 40,366 38,688 41,220 43,321 44,556 43,515 44,013 43,836 43,834" 43,722' 44,026 43,698 43,486 79 Public 90,566 94,971 98,551 112,453 109,906 105,957 109,813 111,532 105,741" 112,820" 106,425 111,974 115,854 30 Military 4,327 3,579 3,520 3,886 5,099 5,057 5,459 5,868 3,308" 2,888' 2,543 2,401 2,687 31 Highway 26,958 30,140 29,502 37,018 32,374 29,714 30,658 30,311 28,775 31,865 31,322 33,326 35,486 37 Conservation and development... 5,519 4,726 4,969 5,559 4,9% 4,979 5,504 3,958 4,460" 4,776' 3,482 4,883 5,142 33 Other 53,762 56,526 60,560 65,990 67,437 66,207 68,192 71,395 69,198" 73,291' 69,078 71,364 72,539 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 • March 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 1990 1990 DDDeeeccc... 11998899 11999900 111999999000 DDeecc.. DDeecc.. Mar. June Sept. Dec. Aug/ Sept/ Oct. Nov. Dec. CONSUMER PRICES2 (1982-84=100) 1 All items 4.6 6.1 8.5 3.5 7.9 4.9 .8 .8 .6 .3 .3 133.8 2 Food 5.6 5.3 11.4 2.1 3.7 4.3 .3 .2 .4 .5 .1 134.2 3 Energy items 5.1 18.1 14.8 -2.0 42.7 20.3 4.3 5.6 4.5 .5 -.4 110.1 4 All items less food and energy 4.4 5.2 7.5 3.9 5.7 3.8 .5 .3 .3 .3 .4 138.3 5 Commodities 2.7 3.4 7.8 .7 2.9 2.3 .0 .4 .2 .0 .4 125.3 6 Services 5.3 6.0 7.2 5.5 7.2 4.5 .8 .3 .3 .4 .3 145.8 PRODUCER PRICES (1982=100) 7 Finished goods 4.9 5.6 7.1 .3 11.7 4.0 1.1 1.6 1.1 .5 -.6 121.9 8 Consumer foods 5.2 2.5 10.6 -3.8 .6 3.3 .6 -.8 .9 .8 -.9 124.1 9 Consumer energy 9.5 29.8 24.7 -14.3 137.4 12.2 8.7 14.1 8.0 .1 -4.8 84.1 10 Other consumer goods 4.4 3.6 3.5 5.4 2.2 3.4 .2 .5 .0 .6 .2 131.1 11 Capital equipment 3.8 3.4 4.0 2.3 5.3 1.9 .3 .6 -.2 .2 .4 124.9 12 Intermediate materials3 2.5 4.6 2.5 -.4 13.4 3.1 1.3 1.9 1.6 .2 -1.0 117.0 13 Excluding energy .9 1.9 1.0 .7 4.0 2.0 .3 .5 .4 .2 -.2 122.0 Crude materials 14 Foods 2.8 -3.6 9.1 -10.2 -7.9 -2.9 -1.1 -1.5 1.1 -1.7 -.1 108.5 15 Energy 17.9 18.6 .5 -39.2 296.0 -18.2 25.1 12.3 18.7 -10.3 -10.7 93.1 16 Other -3.6 .4 4.0 13.2 8.7 -20.9 1.9 -.4 -1.7 -2.3 -1.8 132.5 1. Not seasonally adjusted. 3. Excludes intermediate materials for food manufacturing and manufactured 2. Figures for consumer prices are those for all urban consumers and reflect a animal feeds. rental equivalence measure of homeownership after 1982. SOURCE. Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A53 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1989 1990 AAccccoouunntt 11998888 11998899 11999900 Q4 QL Q2 Q3 Q4 GROSS NATIONAL PRODUCT 1 Total 4,873.7 5,200.8 5,463.0 5,289.3 5,375.4 5,443.3 5,514.6 5,518.9 By source 2 Personal consumption expenditures 3,238.2 3,450.1 3,658.1 3,518.5 3,588.1 3,622.7 3,693.4 33,,772288..11 3 Durable goods 457.5 474.6 481.6 471.2 492.1 478.4 482.3 473.5 4 Nondurable goods 1,060.0 1,130.0 1,194.2 1,148.8 1,174.7 1,179.0 1,205.0 1,218.3 5 Services 1,720.7 1,845.5 1,982.3 1,898.5 1,921.3 1,965.3 2,006.2 2,036.3 6 Gross private domestic investment 747.1 771.2 745.0 762.7 747.2 759.0 759.7 714.0 7 Fixed investment 720.8 742.9 747.2 737.7 758.9 745.6 750.7 733.6 8 Nonresidential 488.4 511.9 524.3 511.8 523.1 516.5 532.8 525.0 9 Structures 139.9 146.2 147.2 147.1 148.8 147.2 149.8 142.8 10 Producers' durable equipment 348.4 365.7 377.2 364.7 374.3 369.3 383.0 382.2 11 Residential structures 232.5 231.0 222.9 225.9 235.9 229.1 217.9 208.6 17 Change in business inventories 26.2 28.3 -2.2 25.0 -11.8 13.4 9.0 -19.5 13 Nonfarm 29.8 23.3 -4.7 24.1 -17.0 13.0 6.8 -21.6 14 Net exports of goods and services -74.1 -46.1 -38.0 -35.3 -30.0 -24.9 -41.3 -55.9 15 Exports 552.0 626.2 670.4 642.8 661.3 659.7 672.7 687.7 16 Imports 626.1 672.3 708.4 678.1 691.3 684.6 714.1 743.7 17 Government purchases of goods and services 962.5 1,025.6 1,098.0 1,043.3 1,070.1 1,086.4 1,102.8 1,132.7 18 Federal 380.3 400.0 424.2 399.9 410.6 421.9 425.8 438.5 19 State and local 582.3 625.6 673.8 643.4 659.6 664.6 677.0 694.2 By major type of product 70 Final sales, total 4,847.5 5,172.5 5,465.3 5,264.3 55,,338877..22 55,,442299..99 55,,550055..66 55,,553388..44 71 Goods 1,908.9 2,044.4 2,146.5 2,060.9 2,122.8 2,133.1 2,161.4 2,168.9 77 Durable 840.3 894.7 938.2 894.2 941.4 930.1 943.4 937.9 73 Nondurable 1,068.6 1,149.7 1,208.4 1,166.7 1,181.4 1,203.0 1,218.0 1,231.0 74 Services 2,488.6 2,671.2 2,860.5 2,747.5 2,791.3 2,834.2 2,889.6 2,926.8 25 Structures 450.0 456.9 458.2 455.9 473.0 462.5 454.6 442.7 76 Change in business inventories 26.2 28.3 -2.2 25.0 -11.8 13.4 9.0 -19.5 7,7 Durable goods 19.8 11.9 -5.6 13.2 -21.6 .0 9.8 -10.4 28 Nondurable goods 6.4 16.4 3.3 11.9 9.8 13.4 -.8 -9.1 MEMO 29 Total GNP in 1982 dollars 4,016.9 4,117.7 4,155.8 4,133.2 4,150.6 4,155.1 4,170.0 44,,114477..66 NATIONAL INCOME 30 Total 3,984.9 4,223.3 4,417.5 4,267.1 4,350.3 4,411.3 4,452.4 n.a. 31 Compensation of employees 2,905.1 3,079.0 3,244.2 3,128.6 3,180.4 3,232.5 3,276.9 3,286.9 3? Wages and salaries 2,431.1 2,573.2 2,705.3 2,612.7 2,651.6 2,696.3 2,734.2 2,739.1 33 Government and government enterprises 446.6 476.6 508.0 486.7 497.1 505.7 511.3 518.1 34 Other 1,984.5 2,096.6 2,197.3 2,126.0 2,154.5 2,190.6 2,222.9 2,221.0 35 Supplement to wages and salaries 474.0 505.8 538.9 515.9 528.8 536.1 542.7 547.8 36 Employer contributions for social insurance 248.5 263.9 280.8 268.4 276.0 279.7 282.7 284.6 37 Other labor income 225.5 241.9 258.1 247.5 252.8 256.4 260.0 263.2 38 Proprietors' income1 354.2 379.3 402.4 381.7 404.0 401.7 397.9 406.1 39 Business and professional 310.5 330.7 352.5 336.0 346.6 350.8 355.6 357.2 40 Farm1 43.7 48.6 49.9 45.7 57.4 51.0 42.4 48.9 41 Rental income of persons2 16.3 8.2 6.7 4.1 5.5 4.3 8.4 8.5 42 Corporate profits' 337.6 311.6 297.1 290.9 296.8 306.6 300.7 n.a. 43 Profits before tax 316.7 307.7 305.4 289.8 296.9 299.3 318.5 n.a. 44 Inventory valuation adjustment -27.0 -21.7 -13.2 -14.5 -11.4 -.5 -19.8 -21.2 45 Capital consumption adjustment 47.8 25.5 4.9 15.6 11.3 7.7 2.0 -1.4 46 Net interest 371.8 445.1 467.1 461.7 463.6 466.2 468.3 470.2 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 • March 1991 2.17 PERSONAL INCOME AND SAVING Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted. 1989 1990 AAccccoouunntt 11998888 11998899 11999900 Q4 Ql Q2 Q3 Q4 PERSONAL INCOME AND SAVING 1 Total personal income 4,070.8 4,384.3 4,645.6 4,469.2 4,562.8 4,622.2 4,678.5 4,719.0 2 Wage and salary disbursements 2,431.1 2,573.2 2,705.3 2,612.7 2,651.6 2,696.3 2,734.2 2,739.1 3 Commodity-producing industries 696.4 720.6 729.2 721.4 724.6 731.1 735.3 725.6 4 Manufacturing 524.0 541.8 546.7 540.9 541.2 548.1 551.8 545.6 5 Distributive industries 572.0 604.7 637.1 614.6 627.0 637.3 642.7 641.5 6 Service industries 716.2 771.4 831.0 790.0 802.9 822.2 844.9 853.9 7 Government and government enterprises 446.6 476.6 508.0 486.7 497.1 505.7 511.3 518.1 225.5 241.9 258.1 247.5 252.8 256.4 260.0 263.2 9 Proprietors' income1 354.2 379.3 402.4 381.7 404.0 401.7 397.9 406.1 10 Business and professional 310.5 330.7 352.5 336.0 346.6 350.8 355.6 357.2 11 Farm1 43.7 48.6 49.9 45.7 57.4 51.0 42.4 48.9 12 Rental income of persons 16.3 8.2 6.7 4.1 5.5 4.3 8.4 8.5 102.2 114.4 123.8 118.2 120.5 122.9 124.9 126.7 14 Personal interest income 547.9 643.2 680.9 664.9 670.5 678.0 685.3 690.1 15 Transfer payments 587.7 636.9 694.6 655.9 680.9 686.7 696.4 714.3 16 Old-age survivors, disability, and health insurance benefits ... 300.5 325.3 350.7 334.1 347.2 347.6 351.1 356.8 17 LESS: Personal contributions for social insurance 194.1 212.8 226.2 215.8 222.9 224.1 228.6 229.0 18 EQUALS: Personal income 4,070.8 4,384.3 4,645.6 4,469.2 4,562.8 4,622.2 4,678.5 4,719.0 19 LESS: Personal tax and nontax payments 591.6 658.8 699.8 669.6 675.1 696.5 709.5 718.1 20 EQUALS: Disposable personal income 3,479.2 3,725.5 3,945.8 3,799.6 3,887.7 3,925.7 3,969.1 4,000.9 21 LESS: Personal outlays 3,333.6 3,553.7 3,766.8 3,625.5 3,696.4 3,730.6 3,802.6 3,837.4 22 EQUALS: Personal saving 145.6 171.8 179.1 174.1 191.3 195.1 166.5 163.5 MEMO Per capita (1982 dollars) 23 Gross national product 16,302.4 16,550.2 16,530.6 16,546.0 16,575.9 1166,,555544..22 1166,,556600..88 1166,,442266..11 24 Personal consumption expenditures 10,578.3 10,678.5 10,669.1 10,688.2 10,692.1 10,672.5 10,710.1 10,597.2 25 Disposable personal income 11,368.0 11,531.0 11,508.0 11,541.0 11,586.0 11,564.0 11,511.0 11,374.0 26 Saving rate (percent) 4.2 4.6 4.5 4.6 4.9 5.0 4.2 4.1 GROSS SAVING 27 Gross saving 656.1 691.5 657.9 674.8 664.8 679.3 665.9 n.a. 28 Gross private saving 751.3 779.3 783.9 786.4 795.0 806.7 772.2 n.a. 29 Personal saving 145.6 171.8 179.1 174.1 191.3 195.1 166.5 163.5 30 Undistributed corporate profits1 91.4 53.0 29.1 39.8 36.7 40.5 26.5 n.a. 31 Corporate inventory valuation adjustment -27.0 -21.7 -13.2 -14.5 -11.4 -.5 -19.8 -21.2 Capital consumption allowances 32 Corporate 322.1 346.4 363.0 356.5 356.7 335599..77 336655..55 337700..33 33 Noncorporate 192.2 208.0 212.6 216.0 210.3 211.4 213.8 214.9 34 Government surplus, or deficit (-), national income and -95.3 -87.8 -126.0 -111.6 -130.2 --112277..33 --110066..44 n.a. 35 Federal -141.7 -134.3 -161.3 -150.1 -168.3 -166.0 -145.7 n.a. 36 State and local 46.5 46.4 35.4 38.5 38.1 38.6 39.3 n.a. 37 Gross investment 627.8 674.4 654.8 671.8 665.6 676.1 661.0 616.7 38 Gross private domestic 747.1 771.2 745.0 762.7 747.2 759.0 759.7 714.0 39 Net foreign -119.2 -96.8 -90.1 -90.9 -81.6 -82.9 -98.7 -97.3 40 Statistical discrepancy -28.2 -17.0 -3.1 -3.0 .7 -3.2 -4.9 n.a. 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 1989 1990 Item credits or debits 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 -i26,986 - i i4,864 -29,803 -28,746 -26,283 -23,102 -29,752 Merchandise exports 250,266 320,337 360,465 89,349 91,738 %,262 %,758 %,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, -). 9,14 0 9 -3,912 0 -25,293 0 -5,9% 0 -3,202 0 -3,177 0 37 0 1 1,73 0 9 13 Gold 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 -45,4% 36,713 -31,284 -27,811 18 Bank-reported claims -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 -7,4% -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, 173,260 181,926 205,829 61,133 76,336 -24,786 19,954 38,829 U.S. bank-reported liabilities3 89,026 70,235 61,199 27,845 36,674 -32,264 4,897 32,288 U Fo .S re . ig n n o n p b r a iv n a k t - e r e p p u o r r c t h ed a se li s a b o i f l it U ie . s S . Treasury securities, net -7 2 , , 6 8 4 6 3 3 2 6 0 , , 6 2 6 3 4 9 29 2 , , 9 8 5 6 1 7 - 1 2 2 , , 1 6 7 1 5 8 5 1 , , 6 7 7 3 1 2 -8 2 3 9 5 0 3 1 , , 6 3 1 1 4 7 ""' 453 Foreign purchases of other U.S. securities, net 42,120 26,353 39,568 10,470 10,793 2,486 2,890 -1,543 Foreign direct investments in United States, net 46,894 58,435 72,244 12,375 21,466 5,537 7,236 7,631 0 0 0 0 0 0 0 0 34 Allocation of SDRs 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 4,868 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) 9,149 -3,912 -25,293 -5,9% -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 • March 1991 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data are seasonally adjusted. 1990 IItteemm 11998877 11998888 11998899 May June July Aug. Sept. Oct/ Nov.p 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments, f.a.s. value 254,073 322,427 363,812 32,774 34,221 32,125 32,549 32,010 35,006 33,617 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 2 Customs value 406,241 440,952 473,211 40,543 39,561 41,244 42,283 41,337 45,994 43,319 Trade balance 3 Customs value -152,169 -118,526 -109,399 -7,770 -5,340 -9,119 -9,734 -9,326 -10,988 -9,702 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 June July Aug. Sept. Oct. Nov. Dec." 1 Total 45,798 47,802 74,609 77,298 77,906 78,909 80,024 82,852 83,059 83,340 2 Gold stock, including Exchange Stabilization Fund 11,078 11,057 11,059 11,065 11,064 11,065 11,063 11,060 11,059 11,058 3 Special drawing rights2'3 10,283 9,637 9,951 10,490 10,699 10,780 10,666 10,876 11,059 10,989 4 Reserve position in International Monetary Fund 11,349 9,745 9,048 8,449 8,686 8,890 8,881 9,066 8,871 9,076 5 Foreign currencies4 13,088 17,363 44,551 47,294 47,457 48,174 49,414 51,850 52,070 52,217 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 June July Aug. Sept. Oct. Nov. Dec. 1 Deposits 244 347 589 368 279 337 360 297 264 369 Assets held in custody 2 U.S. Treasury securities2 195,126 232,547 224,911 255,651 256,585 261,051 261,321 266,749 272,399 278,499 3 Earmarked gold3 13,919 13,636 13,456 13,433 13,422 13,412 13,419 13,415 13,389 13,387 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 May June July Aug. Sept. Oct. Nov. AH foreign countries 1 Total, all currencies 518,618 505,595 545,366 541,439 524,010 531,418 551,346 546,140 552,510 558,609 7 Claims on United States 138,034 169,111 198,835 182,224 179,258 174,583 178,236 182,555 177,539 180,979 3 105,845 129,856 157,092 140,751 138,384 133,682 137,558 140,865 135,536 140,352 4 Other banks in United States 16,416 14,918 17,042 15,647 15,166 15,239 14,500 14,266' 13,261' 12,927 5 Nonbanks 15,773 24,337 24,701 25,826 25,708 25,662 26,178 27,424r 28,742' 27,700 6 Claims on foreigners 342,520 299,728 300,575 306,058 293,627 304,674 313,831 311,254 319,318 322,961 7 Other branches of parent bank 122,155 107,179 113,810 116,640 108,464 115,353 121,705 123,359 128,747' 135,179 8 108,859 96,932 90,703 90,422 85,780 85,911 88,768 83,31r 82,706' 81,383 9 Public borrowers 21,832 17,163 16,456 16,172 16,220 16,264 16,157 16,379 16,335 16,588 10 Nonbank foreigners 89,674 78,454 79,606 82,824 83,163 87,146 87,201 88,205' 91,530 89,811 11 Other assets 38,064 36,756 45,956 53,157 51,125 52,161 59,279 52,331 55,653 54,669 12 Total payable in U.S. dollars 350,107 357,573 382,717 362,991 350,110 346,335 357,970 360,046' 362,409 371,476 n Claims on United States 132,023 163,456 191,184 173,887 171,551 166,294 169,714 173,978 168,956 172,145 14 103,251 126,929 152,294 135,211 133,167 128,066 131,994 135,068 129,850 134,255 15 Other banks in United States 14,657 14,167 16,386 14,818 14,575 14,375 13,513 13,416 12,441 12,078 16 14,115 22,360 22,504 23,858 23,809 23,853 24,207 25,494 26,665 25,812 17 Claims on foreigners 202,428 177,685 169,690 167,493 158,452 157,910 163,152 163,65c 168,345 174,397 18 Other branches of parent bank 88,284 80,736 82,949 83,381 76,410 79,241 82,564 84,378 90,198' 95,599 19 63,707 54,884 48,396 44,449 42,918 38,815 40,733 39,419 37,531' 37,740 70 Public borrowers 14,730 12,131 10,961 10,912 10,956 10,652 10,939 11,166 11,201 11,199 21 Nonbank foreigners 35,707 29,934 27,384 28,751 28,168 29,202 28,916 28,687' 29,415 29,859 22 Other assets 15,656 16,432 21,843 21,611 20,107 22,131 25,104 22,418 25,108 24,934 United Kingdom 23 Total, all currencies 158,695 156,835 161,947 177,947 167,885 175,254 184,933 178,484 184,660 188,183 74 Claims on United States 32,518 40,089 39,212 43,247 39,904 40,418 40,092 42,568 39,862 42,301 75 Parent bank 27,350 34,243 35,847 39,089 35,924 36,564 36,140 39,042 35,904 38,453 76 Other banks in United States 1,259 1,123 1,058 747 730 894 1,037 717 694 1,088 77 3,909 4,723 2,307 3,411 3,250 2,960 2,915 2,809 3,264 2,760 78 Claims on foreigners 115,700 106,388 107,657 114,800 108,080 114,254 118,423 114,869 122,203 124,077 79 Other branches of parent bank 39,903 35,625 37,728 43,358 38,068 41,181 43,581 44,408 47,390 49,501 30 36,735 36,765 36,159 35,730 34,194 35,085 37,623 34,094 35,480 36,133 31 Public borrowers 4,752 4,019 3,293 3,943 3,740 3,619 3,757 3,639 3,521 3,675 32 Nonbank foreigners 34,310 29,979 30,477 31,769 32,078 34,369 33,462 32,728 35,812 34,768 33 Other assets 10,477 10,358 15,078 19,900 19,901 20,582 26,418 21,047 22,595 21,805 34 Total payable in U.S. dollars 100,574 103,503 103,427 110,186 100,887 103,047 107,192 107,117 110,231 115,531 35 Claims on United States 30,439 38,012 36,404 39,374 36,158 36,230 35,979 37,991 35,429 37,668 36 Parent bank 26,304 33,252 34,329 36,712 33,509 33,716 33,585 36,024 33,145 35,614 37 Other banks in United States 1,044 964 843 521 552 681 721 460 419 611 38 3,091 3,796 1,232 2,141 2,097 1,833 1,673 1,507 1,865 1,443 39 Claims on foreigners 64,560 60,472 59,062 63,025 57,802 58,278 60,390 59,817 63,720 66,876 40 28,635 28,474 29,872 34,441 30,050 31,220 32,976 33,990 37,069 39,630 41 19,188 18,494 16,579 14,635 14,625 13,621 14,570 13,212 13,571 13,915 4? 3,313 2,840 2,371 3,114 2,942 2,839 2,896 2,866 2,790 2,862 43 Nonbank foreigners 13,424 10,664 10,240 10,835 10,185 10,598 9,948 9,749 10,290 10,469 44 Other assets 5,575 5,019 7,961 7,787 6,927 8,539 10,823 9,309 11,082 10,987 Bahamas and Caymans 45 Total, all currencies 160,321 170,639 176,006 154,851 154,354 145,813 150,695 153,234 153,497 153,615 46 85,318 105,320 124,205 105,617 107,244 99,918 103,521 106,574 106,977 106,517 47 60,048 73,409 87,882 69,807 72,115 64,748 68,507 70,145 70,845 71,249 48 Other banks in United States 14,277 13,145 15,071 14,079 13,603 13,412 12,625 12,539 11,605 11,007 49 Nonbanks 10,993 18,766 21,252 21,731 21,526 21,758 22,389 23,890 24,527 24,261 50 Claims on foreigners 70,162 58,393 44,168 42,147 39,812 38,393 39,595 39,573 38,062 38,611 51 Other branches of parent bank 21,277 17,954 11,309 12,917 11,906 11,785 12,031 11,638 12,152 12,697 5? 33,751 28,268 22,611 19,947 18,492 16,761 17,543 18,076 15,994 16,244 53 Public borrowers 7,428 5,830 5,217 4,350 4,393 4,307 4,554 4,818 4,876 4,772 54 Nonbank foreigners 7,706 6,341 5,031 4,933 5,021 5,540 5,467 5,041 5,040 4,898 55 Other assets 4,841 6,926 7,633 7,087 7,298 7,502 7,579 7,087 8,458 8,487 56 Total payable in U.S. dollars 151,434 163,518 170,780 149,467 149,943 140,966 146,103 149,233 148,862 149,142 1. Beginning with June 1984 data, reported claims held by foreign branches from $50 million to $150 million equivalent in total assets, the threshold now have been reduced by an increase in the reporting threshold for "shell" branches applicable to all reporting branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • March 1991 3.14—Continued 1990 LLiiaabbiilliittyy aaccccoouunntt May June July Aug. Sept. Oct. Nov. All foreign countries 57 Total, all currencies 518,618 505,595 545,366 541,439 524,010 531,418 551,346 546,140 552,510 558,609 58 Negotiable CDs 30,929 28,511 23,500 25,452 23,504 21,805 22,917 21,977 22,089' 21,521 59 To United States 161,390 185,577 197,239 169,791 169,769 163,275 167,410 172,882' 167,543' 171,853 60 Parent bank 87,606 114,720 138,412 109,831 113,151 105,401 109,818 117,352r 113,066' 115,891 61 Other banks in United States 20,355 14,737 11,704 10,272 9,092 9,454 10,264 8,976 7,984 10,740 62 Nonbanks 53,429 56,120 47,123 49,688 47,526 48,420 47,328 46,554 46,493' 45,222 63 To foreigners 304,803 270,923 296,850 315,058 299,951 314,503 321,365 317,204r 327,139 328,256 64 Other branches of parent bank 124,601 111,267 119,591 120,722 113,653 119,476 124,393 125,382r 131,045' 137,571 65 Banks 87,274 72,842 76,452 78,681 73,8% 78,190 79,485 75,353 75,815' 72,352 66 Official institutions 19,564 15,183 16,750 19,710 17,637 19,468 17,801 17,475 18,436 17,9% 67 Nonbank foreigners 73,364 71,631 84,057 95,945 94,765 97,369 99,686 98,994 101,843 100,337 68 Other liabilities 21,496 20,584 27,777 31,138 30,786 31,835 39,654 34,077 35,739" 36,979 69 Total payable in U.S. dollars 361,438 367,483 396,613 369,505 358,681 355,782 365,928 364,940 363,931 372,124 70 Negotiable CDs 26,768 24,045 19,619 20,579 18,928 16,519 17,588 17,219 17,022' 16,845 71 To United States 148,442 173,190 187,286 157,851 158,173 150,943 155,171 159,027r 153,318' 157,057 72 Parent bank 81,783 107,150 132,563 103,389 106,818 98,928 103,355 109,458' 104,619" 107,106 73 Other banks in United States 18,951 13,468 10,519 8,855 7,741 7,884 8,791 7,501 6,486 9,286 74 Nonbanks 47,708 52,572 44,204 45,607 43,614 44,131 43,025 42,068 42,213' 40,665 75 To foreigners 177,711 160,766 176,460 177,888 168,642 174,616 177,484 175,725" 178,%9 183,183 76 Other branches of parent bank 90,469 84,021 87,636 84,415 78,646 81,332 84,157 85,303' 89,658' 95,278 77 Banks 35,065 28,493 30,537 28,265 27,434 28,045 28,945 26,576 23,669' 25,022 78 Official institutions 12,409 8,224 9,873 11,480 9,066 10,613 9,710 9,346 9,689 9,091 79 Nonbank foreigners 39,768 40,028 48,414 53,728 53,4% 54,626 54,672 54,500 55,953 53,792 80 Other liabilities 8,517 9,482 13,248 13,187 12,938 13,704 15,685 12,969 14,622' 15,039 United Kingdom 81 Total, all currencies 158,695 156,835 161,947 177,947 167,885 175,254 184,933 178,484 184,660 188,183 82 Negotiable CDs 26,988 24,528 20,056 21,846 19,672 17,795 18,703 17,542 17,557 17,144 83 To United States 23,470 36,784 36,036 33,755 32,291 32,320 33,365 35,483 32,143' 36,500 84 Parent bank 13,223 27,849 29,726 23,179 23,158 21,952 23,399 25,461 22,013 26,165 85 Other banks in United States 1,536 2,037 1,256 1,847 1,615 1,626 1,535 1,765 1,430 1,671 86 Nonbanks 8,711 6,898 5,054 8,729 7,518 8,742 8,431 8,257 SJW 8,664 87 To foreigners 98,689 86,026 92,307 106,138 99,279 107,533 109,372 106,4% 114,959 113,958 88 Other branches of parent bank 33,078 26,812 27,397 29,193 26,506 28,944 28,%7 30,487 32,357 34,406 89 Banks 34,290 30,609 29,780 31,580 28,575 32,420 34,647 30,113 33,870 32,844 90 Official institutions 11,015 7,873 8,551 11,409 10,263 11,314 9,902 9,578 10,788 9,534 91 Nonbank foreigners 20,306 20,732 26,579 33,956 33,935 34,855 35,856 36,318 37,944 37,174 92 Other liabilities 9,548 9,497 13,548 16,208 16,643 17,606 23,493 18,963 20,001' 20,581 93 Total payable in U.S. dollars 102,550 105,907 108,178 110,595 101,530 104,372 108,532 107,216 108,064 114,090 94 Negotiable CDs 24,926 22,063 18,143 19,012 17,233 14,831 15,758 15,502 15,237 15,100 95 To United States 17,752 32,588 33,056 29,666 28,160 27,%7 28,779 30,368 26,867' 31,117 % Parent bank 12,026 26,404 28,812 22,339 22,190 21,208 22,423 23,%3 20,334 24,381 97 Other banks in United States 1,308 1,752 1,065 1,456 1,325 1,175 1,228 1,471 1,035 1,318 98 Nonbanks 4,418 4,432 3,179 5,871 4,645 5,584 5,128 4,934 5,498" 5,418 99 To foreigners 55,919 47,083 50,517 55,163 49,672 54,591 55,252 54,679 57,639 59,787 100 Other branches of parent bank 22,334 18,561 18,384 18,589 16,199 17,408 17,347 18,560 20,797 23,288 101 Banks 15,580 13,407 12,244 11,007 9,911 11,251 13,042 11,116 10,465 11,911 102 Official institutions 7,530 4,348 5,454 7,264 5,305 6,515 5,463 5,324 5,751 5,000 103 Nonbank foreigners 10,475 10,767 14,435 18,303 18,257 19,417 19,400 19,679 20,626 19,588 104 Other liabilities 3,953 4,173 6,462 6,754 6,465 6,983 8,743 6,667 8,321' 8,086 Bahamas and Caymans 105 Total, all currencies 160,321 170,639 176,006 154,851 154,354 145,813 150,695 153,234 153,497 153,615 106 Negotiable CDs 885 953 678 528 535 548 553 553 560 561 107 To United States 113,950 122,332 124,859 103,655 103,592 95,904 100,622 104,211 103,545 103,852 108 Parent bank 53,239 62,894 75,188 57,136 58,880 51,415 56,092 62,276 62,474 61,227 109 Other banks in United States 17,224 11,494 8,883 6,991 5,984 6,228 7,039 5,398 4,959 7,398 110 Nonbanks 43,487 47,944 40,788 39,528 38,728 38,261 37,491 36,537 36,112 35,227 111 To foreigners 43,815 45,161 47,382 48,410 47,613 47,010 46,922 46,237 46,867 46,299 112 Other branches of parent bank 19,185 23,686 23,414 25,535 24,184 24,560 24,%5 24,781 25,864 25,579 113 Banks 10,769 8,336 8,823 8,154 8,969 8,120 7,469 7,519 6,794 6,569 114 Official institutions 1,504 1,074 1,097 962 960 999 943 731 703 763 115 Nonbank foreigners 12,357 12,065 14,048 13,759 13,500 13,331 13,545 13,206 13,506 13,388 116 Other liabilities 1,671 2,193 3,087 2,258 2,614 2,351 2,598 2,233 2,525 2,903 117 Total payable in U.S. dollars 152,927 162,950 171,250 149,707 149,680 140,377 145,670 148,589 147,749 147, %2 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 May June July Aug. Sept. Oct. Nov.'' 1 Total1 304,132 312,472 308,418 310,041 312,691 321,418 323,834 329,201 340,206 By type 2 Liabilities reported by banks in the United States 31,519 36,496 36,768 37,971 38,986 40,501 39,842 43,8% 42,539 3 U.S. Treasury bills and certificates 103,722 76,985 72,322 71,804 72,690 72,803 72,472 72,457 80,385 U.S. Treasury bonds and notes 4 Marketable 152,429 179,264 177,092 178,016 178,740 185,534 189,334 190,560 195,427 5 Nonmarketable 523 568 3,620 3,644 3,668 3,692 3,717 3,741 3,765 6 U.S. securities other than U.S. Treasury securities 15,939 19,159 18,616 18,606 18,607 18,888 18,469 18,547 18,090 By area 7 Western Europe1 123,752 133,417 142,465 147,167 149,845 152,777 156,432 163,133 169,116 8 Canada 9,513 9,482 6,550 6,961 8,415 11,083 10,171 8,903 8,639 9 Latin America and Caribbean 10,030 8,740 9,147 10,451 9,973 11,190 11,406 11,088 14,027 10 Asia 151,887 153,338 141,490 136,335 135,695 137,008 136,383 137,066 139,364 11 1,403 1,030 1,074 946 917 1,697 1,383 1,305 1,404 12 Other countries6 7,548 6,469 7,691 8,183 7,848 7,665 8,058 7,707 7,657 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 67,822' 63,244 68,547 69,667 2 Banks' own claims 26,180 51,271 68,983 65,127 61,100 66,655 67,%5 3 Deposits 14,129 18,861 25,100 20,491 21,590 20,256 23,734 4 Other claims 12,052 32,410 43,884 44,636 39,510 46,399 44,231 5 Claims of banks' domestic customers2 2,507 551 364 3,507 1,649 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 • March 1991 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 199C HHoollddeerr aanndd ttyyppee ooff lliiaabbiilliittyy 11998877 11998888 11998899 May June July Aug. Sept. Oct. Nov." 1 All foreigners 618,874 685,339 736,663r 715,575 708,044 719,860 737,890 741,998 750,045 746,073 2 Banks' own liabilities 470,070 514,532 577,283' 552,400 544,775 554,516 570,277 572,174 576,566 562,887 3 Demand deposits 22,383 21,863 22,030' 20,565 20,347 19,723 20,505 22,086 20,319 19,853 4 Time deposits 148,374 152,164 168,735 149,941 150,695 153,533 156,254 158,638 158,644 161,704 5 Other. 51,677 51,366 67,700' 66,415 66,016 67,214 74,923 66,373 73,903 71,193 6 Own foreign offices 247,635 289,138 318,818' 315,478 307,718 314,046 318,594 325,077 323,700 310,136 7 Banks' custody liabilities5 148,804 170,807 159,380 163,175 163,269 165,344 167,614 169,823 173,479 183,186 8 U.S. Treasury bills and certificates 101,743 115,056 91,100 88,908 90,082 91,884 93,038 91,464 94,971 101,420 9 Other negotiable and readily transferable instruments 16,776 16,426 19,526 18,531 17,865 17,596 16,983 17,198 17,761 18,304 10 Other 30,285 39,325 48,754 55,737 55,322 55,864 57,593 61,162 60,747 63,462 11 Nonmonetary international and regional organizations 4,464 3,224 4,772 4,553 4,994 4,112 4,290 5,206 4,507 4,416 12 Banks' own liabilities 2,702 2,527 3,156 2,908 3,594 2,790 2,330 3,894 3,472 2,271 13 Demand deposits 124 71 96 28 29 46 39 101 57 33 14 Time deposits 1,538 1,183 927 773 1,367 938 1,303 1,245 885 760 15 Other. 1,040 1,272 2,133 2,107 2,198 1,807 987 2,548 2,529 1,478 16 Banks' custody liabilities5 1,761 698 1,616 1,645 1,399 1,322 1,959 1,311 1,034 2,145 17 U.S. Treasury bills and certificates6 265 57 197 174 147 148 1,095 479 248 1,077 18 Other negotiable and readily transferable instruments7 1,497 641 1,417 1,463 1,253 1,159 819 817 782 1,022 19 Other 0 0 2 8 0 15 45 15 5 46 20 Official institutions9 120,667 135,241 113,481' 109,090 109,774 111,676 113,304 112,313 116,353 122,924 21 Banks' own liabilities 28,703 27,109 31,108' 33,415 33,878 35,239 36,465 35,877 39,108 37,433 22 Demand deposits 1,757 1,917 2,196 1,644 1,611 1,516 1,914 2,498 2,121 1,784 21 Time deposits2 12,843 9,767 10,495 10,758 9,951 11,290 11,039 11,187 11,271 12,604 24 Other 14,103 15,425 18,417' 21,013 22,316 22,433 23,512 22,192 25,717 23,046 25 Banks' custody liabilities5 91,965 108,132 82,373 75,674 75,896 76,437 76,839 76,436 77,244 85,490 26 U.S. Treasury bills and certificates6 88,829 103,722 76,985 72,322 71,804 72,690 72,803 72,472 72,457 80,385 27 Other negotiable and readily transferable instruments7 2,990 4,130 5,028 3,158 3,650 3,596 3,685 3,676 4,361 4,725 28 Other 146 280 361 195 443 150 351 289 427 380 29 Banks10 414,280 459,523 515,229' 503,474 497,345 507,243 524,512 529,813 528,823 522,298 30 Banks' own liabilities 371,665 409,501 454,227' 432,334 424,831 433,379 449,097 451,339 450,954 441,410 31 Unaffiliated foreign banks 124,030 120,362 135,409' 116,855 117,114 119,334 130,502 126,262 127,255 131,274 32 Demand deposits 10,898 9,948 10,279' 9,671 9,484 9,224 9,797 10,405 8,988 8,995 33 Time deposits 79,717 80,189 90,557 70,406 72,618 74,103 77,585 80,214 80,478 83,631 34 Other3 33,415 30,226 34,573' 36,779 35,012 36,007 43,120 35,643 37,789 38,647 35 Own foreign offices 247,635 289,138 318,818' 315,478 307,718 314,046 318,594 325,077 323,700 310,136 36 Banks' custody liabilities5 42,615 50,022 61,002' 71,140 72,514 73,864 75,416 78,474 77,869 80,889 37 U.S. Treasury bills and certificates 9,134 7,602 9,367 11,578 13,502 13,964 13,855 13,009 13,646 13,342 38 Other negotiable and readily transferable instruments7 5,392 5,725 5,124 5,616 5,757 5,759 5,366 6,187 5,921 5,846 39 Other 28,089 36,694 46,510' 53,945 53,254 54,141 56,195 59,278 58,302 61,700 40 Other foreigners 79,463 87,351 103,182' 98,458 95,931 96,828 95,784 94,666 100,362 96,435 41 Banks' own liabilities 67,000 75,396 88,793 83,742 82,471 83,107 82,385 81,063 83,031 81,772 47 Demand deposits 9,604 9,928 9,459' 9,223 9,223 8,937 8,755 9,082 9,153 9,041 43 Time deposits 54,277 61,025 66,757 68,004 66,759 67,202 66,326 65,992 66,010 64,709 44 Other. 3,119 4,443 12,577' 6,516 6,489 6,968 7,304 5,990 7,868 8,021 45 Banks' custody liabilities5 12,463 11,956 14,389' 14,716 13,460 13,721 13,400 13,602 17,331 14,663 46 U.S. Treasury bills and certificates 3,515 3,675 4,551 4,834 4,630 5,082 5,285 5,504 8,621 6,616 47 Other negotiable and readily transferable instruments7 6,898 5,929 7,958 8,293 7,205 7,082 7,113 6,518 6,697 6,710 48 Other 2,050 2,351 1,880' 1,589 1,625 1,558 1,001 1,580 2,013 1,336 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 7,314 6,425 7,203 7,282 6,429 5,909 5,713 6,346 6,199 6,466 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 Area and country 1987 11998888 11998899 May June July Aug. Sept. Oct. Nov." 1 Total 618,874 685,339 736,663' 715,575' 708,044' 719,86C 737,89c 741,998' 750,045' 746,073 2 Foreign countries 614,411 682,115 731,892r 711,022' 703,051' 715,747' 733,601' 736,792' 745,538' 741,657 3 Europe 234,641 231,912 237,489' 236,525' 234,412' 236,01C 245,188 244,157' 245,605' 246,939 4 5 6 A D B u e e l s n g t m r i i u a a m rk - Luxembourg 9,3 9 7 4 2 6 7 0 0 1 2 1 0 , , , 2 1 0 0 5 2 0 5 2 1 1 1 0 , , , 2 4 6 3 1 4 3 5 8 ' 9 2 1 , , , 1 5 3 5 4 7 2 C 2 ' 1 2 1 0 , , , 4 5 0 1 3 7 1 1 8 ' 1 2 1 0 , , , 5 4 5 8 9 9 1 8 8 ' 1 2 1 1 , , , 2 5 5 3 3 4 8 7 4 1 2 1 2 , , , 0 4 1 5 3 2 5 6 6 12 1 1 , , , 2 9 4 0 8 0 7 4 1 11 1 1 , , , 4 7 4 9 8 0 2 1 0 7 Finland 377 285 570 314 387 485 463 392 660 422 8 France 29,835 24,777 26,903 23,104' 23,566 23,11C 24,201 29,116 29,128' 29,193 9 Germany 7,022 6,772 7,578 8,090' 8,359' 7,671' 7,605 7,845' 8,439 8,195 10 Greece 689 672 1,028 860 833 877 923 1,435 993 949 11 Italy 12,073 14,599 16,169 16,347 16,779 17,114 17,117 16,361' 16,983 16,347 12 Netherlands 5,014 5,316 6,613 8,166 7,626' 5,972' 6,209 5,385 6,082 6,023 13 Norway 1,362 1,559 2,401 1,582 2,420 1,793 2,192 1,951 1,875 2,329 14 Portugal 801 903 2,407 2,359 3,082 3,073 2,934 2,992 2,970 2,928 15 Spain 2,621 5,494 4,364 4,535 4,391 4,922 4,447 4,343 5,312 7,345 16 Sweden 1,379 1,284 1,491 1,655 1,769 1,586 1,495 833 1,706' 2,923 17 Switzerland 33.766 34,199 34,496 35,180' 34,780 33,557' 34,545 34,637 34,488' 34,159 18 Turkey 703 1,012 1,818 1,641 1,596 1,654 1,897 1,634 1,451' 1,630 19 United Kingdom 116,852 111,811 102,362 104,624 98,515' 100,934' 108,181 104,676' 100, %1' 102,621 20 Yugoslavia 710 529 1,474 1,934 2,169 2,436 2,272 2,043 1,753 1,560 21 Other Western Europe1 9,798 8,598 13,563 11,423 12,360 14,61V 14,057 13,145' 15,684' 13,955 22 U.S.S.R 32 138 350 158 75 194' 56 240 234 220 23 Other Eastern Europe2 582 591 608 1,489' 1,686' 1,335 1,275 1,515 1,294 1,466 24 Canada 30,095 21,062 18,865 19,869' 19,956 20,056 21,122 20,7% 19,654' 20,669 25 Latin America and Caribbean 220,372 271,146 310,948 315,674 313,13c 316,656' 320,056' 325,927' 333,651' 321,300 26 Argentina 5,006 7,804 7,304 8,346 7,993 8,163 7,844 7,981 7,717 7,659 27 Bahamas 74.767 86,863 99,341 98,658 99,255 98,292 101,635 108,28C 110,157' 97,695 28 Bermuda 2.344 2,621 2,884 2,514 3,097' 2,824 2,656 2,739 2,487 2,513 29 Brazil 4,005 5,314 6,334 6,088 6,052' 6,083 6,329 6,058 5,892' 6,501 30 British West Indies 81,494 113,840 138,263 142,129 137,169' 142,722' 142,05C 140,947' 146,517' 144,422 31 Chile 2,210 2,936 3,212 3,517 3,449 3,540 3,491 3,135 3,170 3,422 32 Colombia 4,204 4,374 4,653 4,471 4,508 4,474 4,344 3,926 4,284 4,251 33 Cuba 12 10 10 10 1C 15 11 10 49 9 34 Ecuador 1,082 1,379 1,391 1,367 1,368 1,349 1,348 1,348 1,314 1,310 35 Guatemala 1,082 1,195 1,312 1,473 1,473 1,523 1,496 1,517 1,485 1,478 36 Jamaica 160 269 209 215 224 209' 213 217 219 236 37 Mexico 14,480 15,185 15,423 15,116 16,391' 16,07C 16,325 16,486 16,465 16,370 38 Netherlands Antilles 4,975 6,420 6.310 6,806 6,628 6,409' 6,429 6,558' 7,126 7,351 39 Panama 7,414 4,353 4,361 4,540 4,547' 4,388 4,648 4,632 4,592 4,644 40 Peru 1,275 1,671 1,984 1,532 1,473 1,405 1,369 1,362 1,360 1,327 41 Uruguay 1,582 1,898 2,284 2,560 2,529 2,560 2,531 2,512' 2,512 2,446 42 Venezuela 9,048 9,147 9,468 9,717 10,292 9,830 10,435 11,107' 11,351 12,988 43 Other 5,234 5,868 6,206 6,614 6,673' 6,803 6,901 7,113 6,951' 6,677 44 Asia 121,288 147,838 156,201 129,171' 126,223' 134,134' 137,793' 136,902' 137,236' 143,750 China 45 Mainland 1,162 1,895 1,773 1,784' 1,871 1,890 2,324' 2,115' 2,168' 2,493 46 Taiwan 21,503 26,058 19,588 15,174 11,006 12,611 12,639 12,468 12,242 11,418 47 Hong Kong 10,180 12,248 12,416 12,896 12,369 13,316 13,833' 13,836' 13,767' 13,843 48 India 582 699 780 1,148 966 909 806 1,035 953 1,116 49 Indonesia 1,404 1,180 1,281 1,192 1,53C 1,377 1,130 1,398 1,261 1,261 50 Israel 1,292 1,461 1,243 1,227 1,202 1,122 1,125 939 921 3,075 51 Japan 54,322 74,015 81,184 62,126' 62,402' 66,299' 68,676' 68,926' 67,923 69,179 52 Korea 1,637 2,541 3,215 2,049 2,101' 2,157 2,316 2,564' 2,442 2,732 53 Philippines 1,085 1,163 1,766 1,191 1,329 1,314 1,350 1,340 1,274 1,549 54 Thailand 1.345 1,236 2,093 1,973 2,125 2,745 2,233 1,626 1,448 1,681 55 Middle-East oil-exporting countries3. 13,988 12,083 13,370 13,049 13,007' 14,027' 14,928 14,047 16,406' 17,403 56 Other 12,788 13,260 17,491 15,362 16,314' 16,367' 16,433 16,609 16,432 18,002 57 Africa 3,945 3,991 3,823 3,778 3,650 3,412 4,638 4,152 4,223' 4,388 58 Egypt 1,151 911 686 646 592 583 1,505 970 1,099 996 59 Morocco 194 68 78 86 81 95 77 93 87 90 60 South Africa 202 437 205 241 318 239 332 393 234 282 61 Zaire 67 85 86 66 41 38 43 44 45 55 62 Oil-exporting countries 1,014 1,017 1,121 1,016 890 873 1,072 966 1,05C 1,288 63 Other 1,316 1,474 1,648 1,722 1,728 1,584 1,609 1,687 1,708' 1,678 64 Other countries 4,070 6,165 4,564 6,005 5,680 5,480 4,803 4,858' 5,169 4,610 65 Australia 3,327 5,293 3,867 5,250 5,052 4,892 4,122 4,127' 4,371 3,804 66 All other 744 872 697 755 628 588 681 732 797 807 67 Nonmonetary international and regional organizations 4,464 3,224 4,772 4,553' 4,994' 4,112 4,290 5,206 4,507 4,416 68 International 2,830 2,503 3,825 3,389' 3,856' 2,981 3,150 3,982 3,392 3,2% 69 Latin American regional 1,272 589 684 912 923' 812 569 668 627 809 70 Other regional6 362 133 263 253 215 319 571 556 487 312 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 • March 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 May June July' Aug.' Sept.' Oct.' Nov." 1 Total 459,877 491,165 534,022' 488,578' 489,170' 488,235 494,987 493,239 494,796 504,403 2 Foreign countries 456,472 489,094 530,583' 483,994' 484,669' 483,961 491,343 488,044 490,767 500,029 3 Europe 102,348 116,928 119,024 103,616' 102,398' 102,368 106,463 105,418 103,631 107,194 4 Austria 793 483 415 420 337 399 287 373 247 267 5 Belgium-Luxembourg 9,397 8,515 6,478 6,765 5,621' 6,754 6,682 5,627 5,147 6,449 6 Denmark 717 483 582 1,004 590 503 676 669 489 870 7 Finland 1,010 1,065 1,027 931 1,035 1,112 1,177 962 814 881 8 France 13,548 13,243 16,146 16,224 14,794 13,746 14,288 14,398 13,750 13,338 9 Germany 2,039 2,329 2,865 3,045 2,870 2,595 2,939 3,403 3,242 3,634 10 Greece 462 433 788 597 514 529 610 686 729 720 11 Italy 7,460 7,936 6,662 4,758 5,131' 4,615 4,498 4,634 5,070 5,170 12 Netherlands 2,619 2,541 1,904 1,968 2,041 1,744 1,636 2,219 1,711 1,849 13 Norway 934 455 609 761 745 692 716 744 732 661 14 Portugal 477 261 376 407 543' 543 427 412 444 367 15 Spain 1,853 1,823 1,930 1,897 2,084 2,125 2,100 2,312 2,373 2,585 16 Sweden 2,254 1,977 1,773 2,711 2,614 3,362 3,407 2,447 2,567 2,251 17 Switzerland 2,718 3,895 6,141 4,999 5,249 4,297 3,712 3,928 3,485 3,995 18 Turkey 1,680 1,233 1,071 1,138 1,232' 1,186 1,434 1,377 1,371 1,346 19 United Kingdom 50,823 65,706 65,527 52,333 53,592' 54,804 58,630 57,830 58,203 59,919 20 Yugoslavia 1,700 1,390 1,329 1,128 1,095 1,070 1,029 1,120 1,226 1,160 21 Other Western Europe2 619 1,152 1,302 786 821' 960 694 697 667 619 22 U.S.S.R 389 1,255 1,179 945 754 565 624 940 889 653 23 Other Eastern Europe3 852 754 921 800 737' 765 897 640 474 459 24 Canada 25,368 18,889 15,450 16,355 16,518' 16,391 15,431 15,445 16,179 14,297 25 Latin America and Caribbean 214,789 214,264 230,392 205,404' 208,180' 199,729 204,012 211,783 216,710 228,539 26 Argentina 11,996 11,826 9,270 7,689 7,600 7,166 7,111 7,549 7,028 7,028 27 Bahamas 64,587 66,954 77,921 70,444' 66,870' 66,977 67,870 71,534 71,905 71,026 28 Bermuda 471 483 1,315 774 1,830 1,988 2,443 3,736 3,691 4,291 29 Brazil 25,897 25,735 23,749 21,788' 20,683' 20,180 18,906 18,651 18,626 18,678 30 British West Indies 50,042 55,888 68,709 67,564 74,601' 66,437 70,980 73,530 77,507 85,971 31 Chile 6,308 5,217 4,353 3,630 3,453 3,489 3,430 3,264 3,372 3,373 32 Colombia 2,740 2,944 2,784 2,624 2,596 22,,554422 2,700 2,563 2,544 22,,553322 33 Cuba 1 1 1 0 0 11 2 0 0 11 34 Ecuador 2,286 2,075 1,688 1,503 1,485' 1,515 1,507 1,498 1,487 1,498 35 Guatemala 144 198 197 206 188 196 207 215 211 152 36 Jamaica 188 212 297 260 258 262 243 254 262 340 37 Mexico 29,532 24,637 23,376 14,149' 14,234' 14,689 14,953 15,366 15,359 15,314 38 Netherlands Antilles 980 1,306 1,921 1,630 1,722 1,873 1,632 1,818 3,310 7,386 39 Panama 4,744 2,521 1,740 1,643 1,598 1,491 1,491 1,556 1,463 1,449 40 Peru 1,329 1,013 771 679 683 661 644 649 667 730 41 Uruguay 963 910 928 876 842 843 834 804 794 812 42 Venezuela 10,843 10,733 9,647 8,251 8,136 8,064 7,642 7,274 7,102 6,567 43 Other Latin America and Caribbean 1,738 1,612 1,726 1,693 l^ 1,355 1,417 1,523 1,383 1,391 44 106,096 130,881 157,474' 150,172 149,197' 115588,,002288 115577,,993333 147,568 146,7% 114422,,446622 China Mainland 968 762 634 517 537 554 586 542 639 683 46 Taiwan 4,592 4,184 2,776 1,941 1,946 1,583 2,026 1,681 1,061 1,582 47 Hong Kong 8,218 10,143 11,128 9,563 9,271 9,434 9,473 9,026 8,478 8,506 48 India 510 560 621 579 802 852 628 867 506 540 49 Indonesia 580 674 651 599 801 814 836 826 892 923 50 Israel 1,363 1,136 813 738 777 738 785 698 688 758 51 Japan 68,658 90,149 111,300' 108,245 107,753' 114,663 114,973 106,543 106,540 100,071 52 Korea 5,148 5,213 5,323 5,186 5,128 5,515 5,614 5,679 5,362 5,445 53 Philippines 2,071 1,876 1,344 1,351 1,357 1,342 1,369 1,333 1,206 1,175 54 Thailand 496 848 1,140 1,202 1,279 1,242 1,245 1,279 1,444 1,523 55 Middle East oil-exporting countries5 4,858 6,213 10,149 9,577 10,876' 12,318 10,657 10,430 11,098 10,947 56 Other Asia 8,635 9,122 11,594 10,674 8,668' 8,971 9,741 8,663 8,883 10,309 57 Africa 4,742 5,718 5,890 5,913 5,787 5,567 5,567 5,544 5,601 5,691 58 Egypt 521 507 502 488 469 421 449 430 411 383 59 Morocco 542 511 559 587 565 544 539 542 534 519 60 South Africa 1,507 1,681 1,628 1,639 1,573 1,560 1,571 1,594 1,576 1,724 61 Zaire 15 17 16 20 21 20 19 20 19 19 62 Oil-exporting countries6 1,003 1,523 1,648 1,665 1,649 1,604 1,586 1,536 1,510 1,492 63 Other 1,153 1,479 1,537 1,515 1,511 1,418 1,403 1,422 1,551 1,554 64 Other countries 3,129 2,413 2,354 2,535 2,590 1,878 1,938 2,287 1,850 1,845 65 Australia 2,100 1,520 1,781 1,657 1,712 1,422 1,304 1,863 1,416 1,482 66 All other 1,029 894 573 878 878 456 634 424 433 363 67 Nonmonetary international and regional organizations 3,404 2,071 3,439 4,584' 4,501' 4,275 3,644 5,195 4,030 4,374 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, Po- 7. Excludes the Bank for International Settlements, which is included in land, 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"" May June July Aug. Sept Oct. Nov." 444444499999997777777,,,,,,,666666633333335555555 555555533333338888888,,,,,,,666666688888889999999 555555599999992222222,,,,,,,666666611111116666666 555555544444448888888,,,,,,,222222277777770000000 555555555555555555555,,,,,,,111111111111110000000 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 444444455555559999999,,,,,,,888888877777777777777 444444499999991111111,,,,,,,111111166666665555555 555555533333334444444,,,,,,,000000022222222222222 488,578 444444488888889999999,,,,,,,111111177777770000000 488,235 494,987 444444499999993333333,,,,,,,222222233333339999999 494,796 504,403 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 66666664444444,,,,,,,666666600000005555555 66666662222222,,,,,,,666666655555558888888 66666660000000,,,,,,,000000088888887777777 50,719 44444449999999,,,,,,,000000099999990000000 47,711 46,738 44444448888888,,,,,,,222222211111118888888 46,351 45,725 44 OOwwnn ffoorreeiiggnn ooffffiicceess 222222222222224444444,,,,,,,777777722222227777777 222222255555557777777,,,,,,,444444433333336666666 222222299999995555555,,,,,,,999999988888880000000 275,193 222222288888880000000,,,,,,,000000044444444444444 275,297 273,967 222222277777778888888,,,,,,,888888877777771111111 281,013 290,806 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111122222227777777,,,,,,,666666600000009999999 111111122222229999999,,,,,,,444444422222225555555 111111133333334444444,,,,,,,888888877777770000000 125,848 111111122222221111111,,,,,,,888888822222227777777 128,436 137,784 111111122222224444444,,,,,,,999999988888888888888 124,883 122,323 66 DDeeppoossiittss 66666660000000,,,,,,,666666688888887777777 66666665555555,,,,,,,888888899999998888888 77777778888888,,,,,,,111111188888884444444 73,524 66666669999999,,,,,,,333333333333336666666 73,819 80,628 77777772222222,,,,,,,222222266666666666666 72,152 68,522 77 OOtthheerr 66666666666666,,,,,,,999999922222222222222 66666663333333,,,,,,,555555522222227777777 55555556666666,,,,,,,666666688888886666666 52,324 55555552222222,,,,,,,444444499999991111111 54,617 57,156 55555552222222,,,,,,,777777722222222222222 52,731 53,802 88 AAllll ootthheerr ffoorreeiiggnneerrss 44444442222222,,,,,,,999999933333336666666 44444441111111,,,,,,,666666644444446666666 44444443333333,,,,,,,000000088888884444444 36,818 33333338888888,,,,,,,222222200000009999999 36,791 36,499 44444441111111,,,,,,,111111166666662222222 42,549 45,549 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss33...... 33333337777777,,,,,,,777777755555558888888 44444447777777,,,,,,,555555522222224444444 55555558888888,,,,,,,555555599999994444444 55555559999999,,,,,,,111111100000000000000 66666661111111,,,,,,,888888877777771111111 3333333,,,,,,,666666699999992222222 8888888,,,,,,,222222288888889999999 11111113333333,,,,,,,000000011111119999999 11111115555555,,,,,,,777777700000008888888 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,,,,,,,555555599999992222222 11111115555555,,,,,,,999999944444440000000 11111117777777,,,,,,,222222200000003333333 13 MEMO; Customer liability on 22222223333333,,,,,,,111111100000007777777 11111119999999,,,,,,,555555599999996666666 11111112222222,,,,,,,888888899999999999999 11111112222222,,,,,,,999999933333330000000 11111112222222,,,,,,,888888811111112222222 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States5 40,909 45,565 45,675 41,698 40,411 41,000 44,631 43,154 42,774 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 subsidianes 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 1990" Maturity; by borrower and area 1986 1987 Dec/ June 1 Total 232,295 235,130 233,184 237,684 211,809 208,559 By borrower 2 Maturity of 1 year or less2 160,555 163,997 172,634 177,907 160,299 159,280 3 Foreign public borrowers 24,842 25,889 26,562 23,493 23,253 20,650 4 All other foreigners 135,714 138,108 146,071 154,415 137,046 138,630 5 Maturity over 1 year2 71,740 71,133 60,550 59,776 51,510 49,279 6 Foreign public borrowers 39,103 38,625 35,291 36,014 27,893 27,960 7 All other foreigners 32,637 32,507 25,259 23,762 23,617 21,320 By area Maturity of 1 year or less2 8 Europe 61,784 59,027 55,909 53,912 48,550 49,421 9 Canada 5,895 5,680 6,282 5,909 5,698 5,754 10 Latin America and Caribbean 56,271 56,535 57,991 52,989 46,374 44,293 11 Asia 29,457 35,919 46,224 57,755 51,894 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 4,616 5,639 Maturity of over 1 year2 14 Europe 6,737 6,696 4,666 4,121 4,389 4,201 15 Canada 1,925 2,661 1,922 2,353 2,712 2,819 16 Latin America and Caribbean 56,719 53,817 47,547 45,816 35,530 33,190 17 Asia 4,043 3,830 3,613 4,172 5,552 5,866 18 Africa 1,539 1,747 2,301 2,630 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 • March 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 AArreeaa oorr ccoouunnttrryy 11998866 11998877 Sept. Dec. Mar. June Sept. Dec. Mar. June Sept. 1 Total 386.5 382.4 354.0 346.3 346.1 340.0 346.2 338.4' 334.3' 322.6' 333.1' 2 G-10 countries and Switzerland 156.6 159.7 148.7 152.7 145.4 145.1 146.4 152.9 147.1 140.1 144.3' 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 3.8 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 60.(y 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 15.3' 14.4 26 Ecuador 2.2 1.9 1.8 1.7 1.6 1.5 1.5 1.3 1.2 1.1' 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 ee-iy 66.3' 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 12.7' 12.6' 13.1 37 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 2.3' 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.(r 41.9 57 Bahamas 22.4 17.3 12.9 11.0 15.8 11.0 11.4 5.5 9.2' 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 61 Panama5 4.0 3.7 2.6 2.5 2.2 1.9 1.5 1.4 1.3 1.4 1.5 62 Lebanon .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 63 Hong Kong 11.1 11.2 10.5 9.6 9.6 10.4 10.7 9.7 9.8 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 35.4' 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 June Sept. Dec. Mar. June Sept." 1 25,587 28,302 32,938 38,40C 36,530' 38,413' 38,554' 39,474' 44,348 ? Payable in dollars 21,749 22,785 27,320 33,312' 31,669' 33,569' 34,265' 34,962' 39,260 3 Payable in foreign currencies 3,838 5,517 5,618 5,088 4,861' 4,845 4,289 4,512' 5,088 By type 4 Financial liabilities 12,133 12,424 14,507 18,427 17,141' 18,364' 17,837' 19,499' 20,472 5 Payable in dollars 9,609 8,643 10,608 14,551 13,289 14,462' 14,625' 16,098 16,670 6 Payable in foreign currencies 2,524 3,781 3,900 3,875 3,852' 3,902 3,213 3,401' 3,801 7 Commercial liabilities 13,454 15,878 18,431 19,973r 19,389' 20,049' 20,717' 19,975' 23,876 8 Trade payables 6,450 7,305 6,505 6,501r 6,906' 7,377' 7,275 6,739' 9,789 9 Advance receipts and other liabilities 7,004 8,573 11,926 13,472r 12,483' 12,672' 13,441' 13,237 14,087 10 Payable in dollars 12,140 14,142 16,712 18,76C 18,38c 19,107 19,64C 18,864' 22,590 11 Payable in foreign currencies 1,314 1,737 1,719 1,213 1,009 943 1,076 1,111 1,286 By area or country Financial liabilities 1? 7,917 8,320 9,962 12,575 11,213' 11,607' 1100,,9966CC 1122,,002266 1111,,446655 n Belgium-Luxembourg 270 213 289 357 308 340 333 347 350 14 661 382 359 257 242 258 217 156 462 15 368 551 699 618 592' 521' 482 676' 735 16 Netherlands 542 866 880 835 855' 946 90C 934 948 17 Switzerland 646 558 1,033 938 799 541 529 667 740 18 United Kingdom 5,140 5,557 6,533 9,402 8,207 8,741' 8,212 8,759 7,558 19 Canada 399 360 388 626 575 573 476 345 357 70 Latin America and Caribbean 1,944 1,189 839 1,262 1,367 1,268 1,814 2,508 3,337 ?1 Bahamas 614 318 184 165 186 157 272' 249 368 ??. Bermuda 4 0 0 7 7 17 0 0 0 73 Brazil 32 25 0 0 0 0 0 0 0 74 British West Indies 1,146 778 645 661 743 635 1,061' 1,717 2,352 75 Mexico 22 13 1 17 4 6 5 4 4 26 Venezuela 0 0 0 0 0 0 0 0 0 11 1,805 2,451 3,312 3,863 3,886' 4,814 4,483 4,561' 4,831 78 Japan 1,398 2,042 2,563 3,100 3,130 3,963 3,445 3,559' 3,871 29 Middle East oil-exporting countries2 8 8 3 12 2 2 3 5 4 30 Africa 1 4 2 3 4 2 3 3 2 31 Oil-exporting countries 1 1 0 2 2 0 0 1 0 32 All other4 67 100 4 97 97 100 102 55 479 Commercial liabilities 33 Europe 4,446 5,516 7,305 7,776' 8,321' 8,885' 9,133 8,304 9,690 34 Belgium-Luxembourg 101 132 158 114 137 178 233 295 246 35 France 352 426 455 535 806 871 881 928 1,186 36 Germany 715 909 1,699 1,188' 1,185' 1,364' 1,143 959 1,019 37 Netherlands 424 423 587 688 548 699 688 606 700 38 Switzerland 385 559 417 447 531 621 583 607 708 39 United Kingdom 1,341 1,599 2,065 2,709 2,703 2,618 2,925 2,435 2,774 40 Canada 1,405 1,301 1,217 1,133 1,189 1,067 1,124 1,169' 1,239 41 Latin America and Caribbean 924 864 1,090 1,673 1,086 1,187 1,304 1,277 1,553 4? 32 18 49 34 27 41 37 22 18 43 156 168 286 388 305 308 516 412 371 44 61 46 95 541 113 100 116 106 126 45 British West Indies 49 19 34 42 30 27 18 29 36 46 Mexico 217 189 217 235 220 304 241 285 505 47 Venezuela 216 162 114 131 107 154 85 119 120 48 5,080 6,565 6,915 7,045 7,088' 7,040' 6,886' 6,949' 8,671 49 Japan 2,042 2,578 3,094 2,708 2,676' 2,774' 2,624 3,068' 3,076 50 Middle East oil-exporting countries • 1,679 1,964 1,385 1,482 1,442 1,401 1,393 1,125 2,321 51 619 574 576 762 648 844 753 885 1,315 52 Oil-exporting countries 197 135 202 263 255 307 263 277 593 53 All other4 980 1,057 1,328 1,584' 1,057' 1,027' 1,517 1,390 1,408 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 • March 1991 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1989" 199C TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998866 11998877 11998888rr June Sept. Dec/ Mar. June Sept.p 1 Total 36,265 30,964 34,035 34,420 32,088 31,437 29,708 31,468 30,734 2 Payable in dollars 33,867 28,502 31,654 32,203 29,806 29,106 27,595 29,174 28,379 3 Payable in foreign currencies 2,399 2,462 2,381 2,217 2,282 2,330 2,114 2,294 2,355 By type 4 Financial claims 26,273 20,363 21,869 21,920 19,135 17,689 16,481 17,975 16,464 5 Deposits 19,916 14,894 15,643 16,500 12,154 10,400 10,436 9,877 10,348 6 Payable in dollars 19,331 13,765 14,544 15,581 11,278 9,473 9,583 8,825 9,199 7 Payable in foreign currencies 585 1,128 1,099 919 877 927 853 1,053 1,149 8 Other financial claims 6,357 5,470 6,226 5,420 6,981 7,289 6,045 8,098 6,116 9 Payable in dollars 5,005 4,656 5,450 4,683 6,073 6,535 5,357 7,365 5,463 10 Payable in foreign currencies 1,352 814 777 737 908 754 688 733 652 11 Commercial claims 9,992 10,600 12,166 12,499 12,953 13,748 13,227 13,493 14,271 12 Trade receivables 8,783 9,535 11,091 11,068 11,472 12,140 11,635 11,807 12,471 13 Advance payments and other claims 1,209 1,065 1,075 1,432 1,481 1,608 1,592 1,686 1,800 14 Payable in dollars 9,530 10,081 11,660 11,939 12,455 13,099 12,655 12,985 13,717 15 Payable in foreign currencies 462 519 505 560 498 650 573 508 554 By area or country Financial claims 16 Europe 10,744 9,531 10,279 8,919 7,528 7,040 6,949 9,587 7,894 17 Belgium-Luxembourg 41 7 18 161 166 28 22 126 27 18 France 138 332 203 176 173 153 198 141 143 19 Germany 116 102 120 149 120 192 505 93 97 20 Netherlands 151 350 348 297 292 303 315 332 315 21 Switzerland 185 65 218 68 111 95 122 137 176 22 United Kingdom 9,855 8,467 9,039 7,772 6,419 6,035 5,572 8,539 6,917 23 Canada 4,808 2,844 2,325 2,568 2,359 1,892 1,758 2,040 1,994 24 Latin America and Caribbean 9,291 7,012 8,160 9,319 8,315 7,590 6,921 5,431 5,617 25 Bahamas 2,628 1,994 1,846 1,875 1,699 1,516 1,599 920 929 26 Bermuda 6 7 19 33 33 7 4 3 4 27 Brazil 86 63 47 78 70 224 79 84 70 28 British West Indies 6,078 4,433 5,763 6,923 6,125 5,431 4,824 4,027 4,215 29 Mexico 174 172 151 114 105 94 152 153 158 30 Venezuela 21 19 21 31 36 20 21 20 23 31 Asia 1,317 879 844 995 826 831 763 815 829 32 Japan 999 605 574 525 460 439 416 473 447 33 Middle East oil-exporting countries 7 8 5 8 7 8 7 6 9 34 Africa 85 65 106 80 75 140 67 62 49 35 Oil-exporting countries3 28 7 10 8 8 12 11 8 7 36 All other" 28 33 155 40 31 195 23 41 81 Commercial claims 37 Europe 3,725 4,180 5,181 5,302 5,429 6,168 6,026 6,041 6,392 38 Belgium-Luxembourg 133 178 189 205 220 241 219 207 189 39 France 431 650 672 775 829 956 958 908 1,135 40 Germany 444 562 669 675 686 687 699 662 637 41 Netherlands 164 133 212 413 396 478 450 475 490 42 Switzerland 217 185 344 231 222 305 270 235 292 43 United Kingdom 999 1,073 1,324 1,372 1,398 1,572 1,690 1,586 1,664 44 Canada 934 936 983 1,181 1,278 1,058 1,091 1,108 1,123 45 Latin America and Caribbean 1,857 1,930 2,241 2,103 2,147 2,177 2,061 2,214 2,388 46 Bahamas 28 19 36 13 10 57 22 17 25 47 Bermuda 193 170 230 238 271 323 243 284 340 48 Brazil 234 226 299 315 239 292 231 233 251 49 British West Indies 39 26 22 30 33 36 38 46 35 50 Mexico 412 368 461 439 509 509 525 594 649 51 Venezuela 237 283 227 229 189 147 188 222 223 52 Asia 2,755 2,915 2,993 3,154 3,316 3,538 3,257 3,379 3,566 53 Japan 881 1,158 946 999 1,176 1,184 1,061 1,046 1,207 54 Middle East oil-exporting countries 563 450 453 434 410 515 432 414 403 55 Africa 500 401 435 408 399 418 425 390 372 56 Oil-exporting countries3 139 144 122 112 87 107 89 98 71 57 All other4 222 238 333 351 383 389 367 360 429 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 1990r Transactions, and area or country 1988 1989 J N a o n v .- . May June July Aug. Sept. Oct. Nov.'' U.S. corporate securities STOCKS 1 Foreign purchases 181,185 214,061'" 162,318 15,231 18,211 17,447 20,653 8,812 11,629 15,157 183,185 204,114' 175,454 17,717 18,584 16,080 21,959 11,318 15,428 15,072 2 Foreign sales -2,000 9,946' -13,136 -2,486 -372 1,367 -1,306 -2,506 -3,799 85 3 Net purchases, or sales (-) -1,825 10,180R -13,198 -2,543 -336 1,315 -1,343 -2,452 -3,756 89 4 Foreign countries -3,350 481' -7,181 -1,048 -590 -12 -1,379 -1,160 -1,416 327 5 Europe -281 -708 -1,134 -189 32 -25 -175 -148 -159 -80 6 France 218 -830 -226 -57 -66 -41 -119 2 -87 -15 7 Germany -535 79r -361 -20 -83 -30 -107 -48 -61 21 8 Netherlands -2,243 -3,277' -2,046 -347 -198 -170 -253 -126 -213 405 9 Switzerland -954 3,691'' -3,226 -200 -114 252 -637 -718 -688 -239 10 United Kingdom 1,087 -881' 609 -101 88 174 330 210 155 215 11 Canada 1,238 3,042' -1,070 90 -14 -90 -242 -218 -357 287 12 Latin America and Caribbean . -2,474 3,531 -2,1% -593 -85 -36 187 -437 -558 -430 13 Middle East1 1,365 3,577' -3,098 -904 243 1,056 -69 -712 -1,515 -422 14 Other Asia 1,922 3,330' -2,524 -750 212 851 22 -737 -1,133 -1% 15 Japan 188 131 -46 0 -7 13 16 1 -31 -5 16 Africa 121 299' -217 13 30 211 -186 -135 -35 117 17 Other countries 18 Nonmonetary international and regional organizations — -176 -234 62 57 -37 52 37 -55 -42 -5 BONDS2 86,381 120,540 108,914 8,458 12,562 10,915 11,846 7,484 8,698 11,470 19 Foreign purchases 58,417 86,568' 91,759 6,339 8,448 7,553 12,465 9,354 7,479 7,930 20 Foreign sales 21 Net purchases, or sales (-) ... 27,964 33,972' 17,155 2,119 4,114 3,362 -618 -1,870 1,220 3,540 22 Foreign countries 28,506 33,619' 17,608 2,194 4,082 3,323 -588 -1,900 1,457 3,544 17,239 19,823' 11,046 780 3,378 1,9% 706 -819 588 1,988 23 Europe 143 372 334 108 293 54 -40 -103 -74 24 24 France 1,344 -238 -264 -39 80 33 172 3 -29 -59 25 Germany 1,514 850 68 33 37 37 -15 -71 35 52 26 Netherlands 505 -189' 547 83 186 570 -346 0 -84 52 27 Switzerland 13,084 18,459 10,147 495 2,761 1,145 722 -275 292 1,824 28 United Kingdom 711 1,116 2,117 198 292 70 91 -87 127 237 29 Canada 1,931 3,686 3,689 508 578 273 -103 -208 198 343 30 Latin America and Caribbean . -178 -182 93 251 -120 13 -178 -65 6 -37 31 Middle East1 8,900 9,063 891 440 11 999 -986 -692 588 1,036 32 Other Asia 7,686 6,331 612 331 -131 930 -632 -871 361 814 33 Japan -8 56 % 8 2 -4 -1 5 2 6 34 Africa -89 57' -323 9 -59 -24 -118 -34 -53 -30 35 Other countries 36 Nonmonetary international and regional organizations -542 353 -453 -76 32 39 -31 30 -237 -4 Foreign securities 37 Stocks, net purchases, or sales (-)3 -1,959 -13,097 -6,695 -2,542 -2,861 -1,135 -142 446 -319 1,192 38 Foreign purchases 75,356 109,789 115,158 9,824 11,041 11,425 12,360 7,522 9,277 10,018 39 Foreign sales3 77,315 122,886 121,853 12,366 13,902 12,559 12,502 7,076 9,5% 8,826 40 Bonds, net purchases, or sales (-) -7,434 -6,049 -18,087 -1,717 -1,939 -400 48 -599 -2,805 83 41 Foreign purchases 218,521 234,215 280,722 26,029 25,762 23,367 29,826 25,746 35,254 32,704 42 Foreign sales 225,955 240,264 298,810 27,746 27,702 23,767 29,778 26,346 38,060 32,621 43 Net purchases, or sales (-), of stocks and bonds -9,393 -19,145 -24,782 -4,259 -4,800 -1,535 -94 -153 -3,124 1,275 44 Foreign countries -9,873 -19,178 -22,836 -4,054 -4,347 -1,564 -538 -428 -2,320 1,253 45 Europe -7,864 -17,811 -7,283 -1,976 -3,645 -390 -1,303 -73 -888 1,941 46 Canada -3,747 -4,180 -6,701 -575 -223 -328 167 -4 -881 -1,659 47 Latin America and Caribbean 1,384 426 -6,134 247 417 -222 -64 -401 229 283 48 Asia 979 2,540 -2,255 -1,419 -1,082 -211 606 -323 -697 709 49 Africa -54 93 -165 6 8 -83 -8 12 4 -69 50 Other countries -571 -246 -298 -338 178 -331 65 362 -88 49 51 Nonmonetary international and regional organizations 480 33 -1,946 -205 -453 30 444 275 -804 22 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. Tliis transaction is not reflected in the data above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 International Statistics • March 1991 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1990 1990 Country or area 1988 1989 Jan.- Nov. May June July Aug. Sept. Oct/ Nov." Transactions, net purchases or sales (-) during period1 1 Estimated total2 48,832 S4,198r 13,399 -2,749' 3,554 5,488 4,609 936 -1,013 5,928 2 Foreign countries2 48,170 52,296'' 13,734 -3,154 3,249 5,331 3,968 1,293 -987 5,593 3 Europe2 14,319 36,286 14,307 -3,787 2,587 3,643 -2,128 5,021 275 2,135 4 Belgium-Luxembourg 923 1,048 90 115 270 179 -395 -95 72 -67 5 Germany -5,268 7,904 5,165 306 -1,061 -1 1,424 633 581 1,667 6 Netherlands -356 -1,141 387 -263 313 1% 1,253 956 -454 -223 7 Sweden -323 693 430 -254 -34 133 -266 -33 163 279 8 Switzerland -1,074 1,098' -92 -189 -19 -799 -128 548 617 -6 9 United Kingdom 9,640 20,198 -2,368 -3,545 1,894 1,051 -3,776 1,599 -1,747 -1,580 10 Other Western Europe 10,786 6,508 10,675 43 1,223 2,884 -251 1,407 1,043 2,068 11 Eastern Europe -10 -21 13 0 0 0 11 0 0 -5 12 Canada 3,761 698' -4,711 -1,752 367 1,418 1,177 -868 -637 -463 13 Latin America and Caribbean 713 459' 14,236 478 914 1,934 1,319 -1,953 4,676 4,306 14 Venezuela -109 311 -51 71 48 -1 0 -49 -1 49 15 Other Latin America and Caribbean 1,130 —327' 3,900 610 1,021 1,060 295 -1,157 591 %7 16 Netherlands Antilles -308 475 10,387 -204 -154 874 1,023 -747 4,086 3,290 17 27,603 13,297'" -10,869 2,026 -1,086 -1,672 3,304 -1,751 -5,071 -934 18 Japan 21,750 1,681' -12,350 2,234 -469 161 2,376 -2,092 -3,938 -1,152 19 -13 116 335 -8 52 17 57 151 83 8 20 All other 1,786 1,439 435 -110 416 -9 239 692 -313 543 21 Nonmonetary international and regional organizations 661 1,902 -334 405' 305 158 641 -357 -27 335 22 International 1,106 1,473 -14 398' 462 -25 444 -154 -87 209 23 Latin America regional -31 231 -94 25 -109 25 25 -75 -59 0 Memo 24 Foreign countries 48,170 52,2%' 13,734 -3,154 3,249 5,331 3,968 1,293 -987 5,593 25 Official institutions 26,624 26,835 16,163 -2,384 924 724 6,794 3,799 1,226 4,867 26 Other foreign 21,546 25,461' -2,430 -770 2,325 4,607 -2,826 -2,506 -2,213 726 Oil-exporting countries 27 Middle East3 11,,996633 8,148 -1,397 -188 -439 -2,095 -365 241 -1,247 -878 28 Africa 11 -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 Jan. 31, 1991 Rate on Jan. 31, 1991 Rate on Jan. 31, 1991 Country Country Country Percent e M ffe o c n t t i h v e Percent e M ffe o c n t t i h v e Percent e M ffe o c n t t i h v e Austria.. 6.5 Oct. 1989 France 9.25 Nov. 1990 Norway 8.0 June 1983 Belgium . 10.5 Nov. 1989 Germany, Fed. Rep. of, 6.0 Oct. 1989 Switzerland 6.0 Oct. 1989 Canada.. 10.73 Jan. 1991 Italy 12.5 May 1990 United Kingdom2 Denmark 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 1991 CCoouunnttrryy,, oorr ttyyppee 11998888 11998899 11999900 July Aug. Sept. Oct. Nov. Dec. Jan. 1 Eurodollars 7.85 9.16 8.16 8.09 7.99 8.07 8.06 8.04 7.87 7.23 2 United Kingdom 10.28 13.87 14.73 14.92 14.95 14.88 14.02 13.57 13.75 13.91 3 Canada 9.63 12.20 13.00 13.58 13.13 12.63 12.58 12.36 11.95 11.13 4 Germany 4.28 7.04 8.41 8.17 8.36 8.39 8.51 8.79 9.17 9.25 5 Switzerland 2.94 6.83 8.71 8.81 8.71 8.11 7.88 8.39 8.65 8.44 6 Netherlands 4.72 7.28 8.57 8.16 8.44 8.42 8.39 8.73 9.27 9.31 7 France 7.80 9.27 10.20 9.91 10.03 10.24 9.92 9.88 10.14 10.14 8 Italy 11.04 12.44 12.11 11.38 11.49 10.65 11.40 12.42 13.45 13.13 9 Belgium 6.69 8.65 9.70 9.30 9.30 9.04 8.89 9.03 9.81 9.91 10 Japan 4.43 5.39 7.75 7.68 8.02 8.37 8.26 8.35 8.27 8.18 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 • March 1991 3.28 FOREIGN EXCHANGE RATES' Currency units per dollar 1990 1991 CCoouunnttrryy//ccuurrrreennccyy 11998888 11998899 11999900 Aug. Sept. Oct. Nov. Dec. Jan. 1 Australia/dollar2 78.409 79.186 78.069 80.871 82.512 80.060 77.290 77.019 77.930 2 Austria/schilling 12.357 13.236 11.331 11.044 11.044 10.719 10.451 10.539 10.616 3 Belgium/franc 36.785 39.409 33.424 32.280 32.282 31.373 30.647 31.014 31.088 4 Canada/dollar 1.2306 1.1842 1.1668 1.1448 1.1583 1.1600 1.1635 1.1603 1.1560 5 China, P.R./yuan 3.7314 3.7673 4.7921 4.7339 4.7342 4.7339 4.9714 5.2352 5.2352 6 Denmark/krone 6.7412 7.3210 6.1899 6.0033 5.9961 5.8117 5.6946 5.7735 5.8115 7 Finland/markka 4.1933 4.2963 3.8300 3.7051 3.7113 3.6187 3.5644 3.6341 3.6431 8 France/franc 5.9595 6.3802 5.4467 5.2680 5.2575 5.1032 5.0020 5.0895 5.1253 9 Germany/deutsche mark 1.7570 1.8808 1.6166 1.5702 1.5701 1.5238 1.4857 1.4982 1.5091 10 Greece/drachma 142.00 162.60 158.59 154.82 154.93 153.17 152.27 156.08 159.70 11 Hong Kong/dollar 7.8072 7.8008 7.7899 7.7707 7.7647 7.7722 7.7951 7.8034 7.7950 12 India/rupee 13.900 16.213 17.492 17.347 17.860 18.074 18.098 18.127 18.339 13 Ireland/punt2 152.49 141.80 165.76 170.86 170.91 176.04 180.18 177.77 168.68 14 Italy/lira 1,302.39 1,372.28 1,198.27 1,157.07 1,172.87 1,141.62 1,117.04 1,129.26 1,134.38 15 Japan/yen 128.17 138.07 145.00 147.46 138.44 129.59 129.22 133.89 133.70 16 Malaysia/ringgit 2.6190 2.7079 2.7057 2.6956 2.6959 2.6995 2.6949 2.7030 2.7140 17 Netherlands/guilder 1.9778 2.1219 1.8215 1.7692 1.7699 1.7180 1.6761 1.6904 1.7015 18 New Zealand/dollar2 65.560 59.354 59.619 61.294 62.077 61.129 61.120 59.574 59.476 19 Norway/krone 6.5243 6.9131 6.2541 6.0810 6.0735 5.8241 5.79% 5.8717 5.8993 20 Portugal/escudo 144.27 157.53 142.70 138.71 139.18 134.41 130.87 132.82 134.43 21 Singapore/dollar 2.0133 1.9511 1.8134 1.7905 1.7671 1.7257 1.7100 1.7275 1.7455 22 South Africa/rand 2.2770 2.6214 2.5885 2.5734 2.5712 2.5445 2.5247 2.5395 2.5643 23 South Korea/won 734.52 674.29 710.64 718.26 717.87 717.76 717.03 718.58 720.83 24 Spain/peseta 116.53 118.44 101.% %.90 98.49 95.59 94.07 95.75 95.08 25 Sri Lanka/rupee 31.820 35.947 40.078 40.007 39.953 40.285 40.355 40.244 40.300 26 Sweden/krona 6.1370 6.4559 5.9231 5.7754 5.7663 5.6411 5.5633 5.6338 5.6345 27 Switzerland/franc 1.4643 1.6369 1.3901 1.3076 1.3069 1.2818 1.2569 1.2814 1.2714 28 Taiwan/dollar 28.636 26.407 26.918 27.291 27.302 27.288 27.245 27.162 27.197 29 Thailandftaht 25.312 25.725 25.609 25.579 25.376 25.130 25.078 25.208 25.244 30 United Kingdom/pound2 178.13 163.82 178.41 190.13 187.94 194.56 196.42 192.19 193.46 MEMO 31 United States/dollar3 92.72 98.60 89.09 86.55 86.10 83.43 82.12 83.35 83.51 1. Averages of certified noon buying rates in New York for cable transfers. currencies of 10 industrial countries. The weight for each of the 10 countries is the Data in this table also appear in the Board's G.5 (405) release. For address, see 1972-76 average world trade of that country divided by the average world trade of inside front cover. all 10 countries combined. Series revised as of August 1978 (see Federal Reserve 2. Value in U.S. cents. Bulletin, vol. 64, August 1978, p. 700). 3. Index of weighted-average exchange value of U.S. dollar against the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A71 Guide to Tabular Presentation, Statistical Releases, and Special Tables GUIDE TO TABULAR PRESENTATION Symbols and Abbreviations c Corrected 0 Calculated to be zero e Estimated n.a. Not available p Preliminary n.e.c. Not elsewhere classified r Revised (Notation appears on column heading when 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 fiilly 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 December 31, 1989 June 1990 A72 March 31,1990 January 1991 A72 June 30,1990 February 1991 A72 September 30, 1990 March 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 of U. 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 table follows. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Special Tables • March 1991 4.20 DOMESTIC AND FOREIGN OFFICES, Insured Commercial Bank Assets and Liabilities1-2 Consolidated Report of Condition, September 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 3,364,435 1,922,179 443,072 1,540,351 1,063,653 378,603 2 Cash and balances due from depository institutions 297,895 210,453 97,287 113,166 63,670 23,773 3 Cash items in process of collection, unposted debits, and currency and coin n.a. 79,922 1,834 78,088 31,494 n.a. 4 Cash items in process of collection and unposted debits n.a. n.a. n.a. 64,873 22,612 n.a. 5 Currency and coin n.a. n.a. n.a. 13,215 8,882 n.a. 6 Balances due from depository institutions in the United States n.a. 31,471 17,951 13,520 18,538 n.a. 7 Balances due from banks in foreign countries and foreign central banks n.a. 80,237 77,353 2,884 2,034 n.a. 8 Balances due from Federal Reserve Banks n.a. 18,823 149 18,674 11,605 n.a. 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. n.a. 9,152 13,453 8,811 10 Total securities, loans and lease financing receivables, net 2,789,995 1,504,267 n.a. n.a. 947,354 338,373 11 Total securities, book value 600,602 253,530 33,293 220,237 231,528 115,543 12 U.S. Treasury securities and U.S. government agency and corporation obligations 419,852 161,429 2,846 115588,,558833 168,603 8899,,882200 13 U.S. Treasury securities n.a. 47,761 704 47,058 69,848 n.a. 14 U.S. government agency and corporation obligations n.a. 113,668 2,142 111,526 98,755 n.a. 15 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 144,125 78,157 1,659 76,499 46,874 1199,,009944 16 All other n.a. 35,511 484 35,027 51,881 n.a. 17 Securities issued by states and political subdivisions in the United States 86,447 31,750 1,055 30,695 37,777 16,920 18 Other domestic debt securities n.a. 27,890 1,888 26,002 21,116 n.a. 19 All holdings of private certificates of participation in pools of residential mortgages 3,565 1,771 90 11,,668811 1,334 445599 20 All other domestic debt securities 52,942 26,119 1,798 24,321 19,782 7,041 21 Foreign debt securities n.a. 28,619 26,669 1,950 444 n.a. 22 8,733 3,842 835 3,007 3,588 1,303 23 Marketable 4,549 1,030 285 745 2,547 972 24 Investments in mutual funds 1,978 150 15 135 910 918 7.5 Other 3,106 1,076 271 805 1,861 170 26 Less: Net unrealized loss 535 195 1 194 224 116 27 Other equity securities 4,184 2,812 550 2,262 1,041 331 28 Federal funds sold and securities purchased under agreements to resell 146,878 74,672 487 74,186 49,757 22,448 29 Federal funds sold 126,505 58,067 n.a. n.a. 46,286 22,152 30 Securities purchased under agreements to resell 20,372 16,605 n.a. n.a. 3,471 2% 31 Total loans and lease financing receivables, gross 2,108,765 1,218,500 218,985 999,514 684,573 205,693 32 LESS: Unearned income on loans 13,991 5,830 1,553 4,276 6,169 1,992 33 Total loans and leases (net of unearned income) 2,094,742 1,212,670 217,432 995,238 678,372 203,700 34 LESS: Allowance for loan and lease losses 51,989 36,368 n.a. n.a. 12,303 3,318 35 LESS: Allocated transfer risk reserves 238 237 n.a. n.a. 0 1 36 EQUALS: Total loans and leases, net 2,042,515 1,176,065 n.a. n.a. 666,069 200,382 Total loans, gross, by category 37 Loans secured by real estate 816,031 407,496 27,178 338800,,331188 330055,,773366 110022,,779999 38 Construction and land development n.a. n.a. n.a. 85,582 39,250 7,942 39 Farmland n.a. n.a. n.a. 2,166 5,386 9,766 40 1-4 family residential properties n.a. n.a. n.a. 176,917 155,182 56,437 41 Revolving, open-end loans, extended under lines of credit n.a. n.a. n.a. 31,784 24,153 3,261 42 All other loans n.a. n.a. n.a. 145,133 131,029 53,175 43 Multifamily (5 or more) residential properties n.a. n.a. n.a. 10,833 7,944 2,022 44 Nonfarm nonresidential properties n.a. n.a. n.a. 104,820 97,973 26,633 45 Loans to depository institutions 52,563 46,135 18,731 27,404 6,035 392 46 To commercial banks in the United States n.a. 22,696 1,520 21,176 5,587 n.a. 47 To other depository institutions in the United States n.a. 2,075 112 1,963 423 n.a. 48 To banks in foreign countries n.a. 21,364 17,099 4,265 26 n.a. 49 Loans to finance agricultural production and other loans to farmers 33,536 5,874 325 5,549 8,549 19,113 50 Commercial and industrial loans 617,970 434,823 108,096 326,727 143,847 39,299 51 To U.S. addressees (domicile) n.a. 349,494 24,650 324,845 143,507 n.a. 52 To non-U.S. addressees (domicile) n.a. 85,329 83,446 1,882 340 n.a. 53 Acceptances of other banks 2,528 863 499 364 932 733 54 U.S. banks n.a. 261 13 248 n.a. n.a. 55 n.a. 602 486 116 n.a. n.a. 56 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 396,916 166,330 17,532 148,799 191,155 3399,,443300 57 Credit cards and related plans 127,415 50,603 n.a. n.a. 74,577 2,235 58 Other (includes single payment and installment) 269,500 115,727 n.a. n.a. 116,578 37,195 59 Obligations (other than securities) of states and political subdivisions in the U.S. (includes nonrated industrial development obligations) 35,990 21,217 273 2200,,994433 1133,,220099 11,,556644 60 1,204 690 118 572 452 62 61 34,785 20,527 155 20,372 12,758 1,501 6? 115,584 104,305 42,218 62,087 9,499 1,780 63 Loans to foreign governments and official institutions n.a. 24,840 23,372 1,468 122 n.a. 64 n.a. 79,465 18,846 60,620 9,377 n.a. 65 Loans for purchasing and carrying securities n.a. n.a. n.a. 13,950 1,489 n.a. 66 All other loans n.a. n.a. n.a. 46,670 7,888 n.a. 67 Lease financing receivables 37,648 31,456 4,133 27,323 5,610 583 68 Assets held in trading accounts 51,663 50,177 26,046 24,105 1,278 208 69 Premises and fixed assets (including capitalized leases) 50,065 27,272 n.a. n.a. 16,393 6,400 70 Other real estate owned 18,531 10,537 n.a. n.a. 5,749 2,245 71 Investments in unconsolidated subsidiaries and associated companies 2,622 2,156 n.a. n.a. 409 57 72 Customers' liability on acceptances outstanding 24,693 24,236 n.a. n.a. 440 16 73 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs n.a. n.a. n.a. 34,988 n.a. n.a. 74 Intangible assets 9,252 5,264 n.a. n.a. 3,703 285 75 Other assets 119,744 87,817 n.a. n.a. 24,681 7,246 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A73 4.20—Continued Banks with foreign offices Bank o s f f w ic it e h s o d n o l m y estic Total Foreign Domestic Over 100 Under 10 76 Total liabilities, limited-life preferred stock, and equity capital 3,364,435 1,922,179 n.a. n.a. 1,063,653 378,603 77 Total liabilities7 3,147,520 1,819,068 443,925 1,436,387 984,482 343,970 78 Limited-life preferred stock 81 0 n.a. n.a. 81 0 79 Total deposits 2,586,897 1,384,628 329,537 1,055,091 867,163 335,106 80 Individuals, partnerships, and corporations n.a. n.a. 198,700 967,425 803,602 308,426 81 U.S. government n.a. n.a. n.a. 3,803 1,996 592 82 States and political subdivisions in the United States n.a. n.a. n.a. 36,907 44,095 21,943 83 Commercial banks in the United States n.a. n.a. n.a. 23,343 8,201 1,160 84 Other depository institutions in the United States n.a. n.a. n.a. 4,893 3,089 905 85 Banks in foreign countries n.a. n.a. n.a. 7,557 108 n.a. 86 Foreign governments and official institutions n.a. 24,537 23,123 1,414 241 n.a. 87 Certified and official checks 18,372 10,520 771 9,749 5,830 2,021 88 Mother8 n.a. n.a. 106,943 n.a. n.a. 59 89 Total transaction accounts n.a. n.a. n.a. 312,560 219,724 84,664 90 Individuals, partnerships, and corporations n.a. n.a. n.a. 261,111 193,236 75,198 91 U.S. government n.a. n.a. n.a. 2,817 1,633 487 92 States and political subdivisions in the United States n.a. n.a. n.a. 9,276 11,666 6,130 93 Commercial banks in the United States n.a. n.a. n.a. 18,727 6,028 591 94 Other depository institutions in the United States n.a. n.a. n.a. 3,056 1,232 224 95 Banks in foreign countries n.a. n.a. n.a. 7,047 89 n.a. 96 Foreign governments and official institutions n.a. n.a. n.a. 778 9 n.a. 97 Certified and official checks n.a. n.a. n.a. 9,749 5,830 2,021 98 All other n.a. n.a. n.a. n.a. n.a. 14 99 Demand deposits (included in total transaction accounts) n.a. n.a. n.a. 235,817 134,005 43,849 100 Individuals, partnerships, and corporations n.a. n.a. n.a. 187,035 114,147 38,655 101 U.S. government n.a. n.a. n.a. 2,799 1,607 472 102 States and political subdivisions in the United States n.a. n.a. n.a. 6,632 5,080 1,882 103 Commercial banks in the United States n.a. n.a. n.a. 18,726 6,024 589 104 Other depository institutions in the United States n.a. n.a. n.a. 3,056 1,217 215 105 Banks in foreign countries n.a. n.a. n.a. 7,042 89 n.a. 106 Foreign governments and official institutions n.a. n.a. n.a. 777 9 n.a. 107 Certified and official checks n.a. n.a. n.a. 9,749 5,830 2,021 108 All other n.a. n.a. n.a. n.a. n.a. 14 109 Total nontransaction accounts n.a. n.a. n.a. 742,530 647,439 250,442 110 Individuals, partnerships, and corporations n.a. n.a. n.a. 706,314 610,366 233,228 111 U.S. government n.a. n.a. n.a. 985 363 105 112 States and political subdivisions in the United States n.a. n.a. n.a. 27,631 32,430 15,814 113 Commercial banks in the United States n.a. n.a. n.a. 4,616 2,173 569 114 U.S. branches and agencies of foreign banks n.a. n.a. n.a. 378 227 n.a. 115 Other commercial banks in the United States n.a. n.a. n.a. 4,238 1,945 n.a. 116 Other depository institutions in the United States n.a. n.a. n.a. 1,837 1,858 681 117 Banks in foreign countries n.a. n.a. n.a. 510 19 n.a. 118 Foreign branches of other U.S. banks n.a. n.a. n.a. 17 16 n.a. 119 Other banks in foreign countries n.a. n.a. n.a. 493 3 n.a. 120 Foreign governments and official institutions n.a. n.a. n.a. 635 231 n.a. 121 All other n.a. n.a. n.a. n.a. n.a. 45 122 Federal funds purchased and securities sold under agreements to repurchase.. 264,578 197,183 790 196,393 64,415 2,980 123 Federal funds purchased 168,807 132,486 n.a. n.a. 35,047 1,274 124 Securities sold under agreements to repurchase 95,771 64,697 n.a. n.a. 29,368 1,706 125 Demand notes issued to the U.S. Treasury n.a. n.a. n.a. 25,567 5,473 618 126 Other borrowed money 122,289 92,308 37,579 54,729 29,080 901 127 Banks liability on acceptances executed and outstanding 24,795 24,339 5,844 18,495 440 16 128 Notes and debentures subordinated to deposits 19,093 17,558 n.a. n.a. 1,418 117 129 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs.. n.a. n.a. n.a. 26,256 n.a. n.a. 130 All other liabilities 98,210 77,485 n.a. n.a. 16,493 4,232 131 Total equity capital9 216,933 103,111 n.a. n.a. 79,190 34,633 MEMO 132 Holdings of commercial paper included in total loans, gross n.a. 881 744 137 1,616 n.a. 133 Total individual retirement accounts (IRA) and Keogh plan accounts n.a. n.a. n.a. 56,516 52,448 18,448 134 Total brokered deposits n.a. n.a. n.a. 50,360 19,833 794 135 Total brokered retail deposits n.a. n.a. n.a. 22,847 13,508 722 136 Issued in denominations of $100,000 or less n.a. n.a. n.a. 4,478 3,532 649 137 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less n.a. n.a. n.a. 18,369 9,976 73 Savings deposits 138 Money market deposit accounts (MMDAs) n.a. n.a. n.a. 198,853 134,330 37,547 139 Other savings deposits (excluding MMDAs) n.a. n.a. n.a. 86,828 79,321 28,893 140 Total time deposits of less than $100,000 n.a. n.a. n.a. 247,897 302 143,285 141 Time certificates of deposit of $100,000 or more n.a. n.a. n.a. 176,627 126,129 39,328 142 Open-account time deposits of $100,000 or more n.a. n.a. n.a. 32,325 5,258 1,389 143 All NOW accounts (including Super NOW) n.a. n.a. n.a. 75,660 84,083 39,544 144 Total time and savings deposits n.a. n.a. n.a. 819,274 733,158 291,257 Quarterly averages 145 Total loans n.a. n.a. n.a. 967,224 669,382 200,382 146 Obligations (other than securities) of states and political subdivisions in the United States n.a. n.a. n.a. 21,186 13,020 n.a. 147 Transaction accounts in domestic offices (NOW accounts, ATS accounts, and telephone and preauthorized transfer accounts) n.a. n.a. n.a. 76,617 85,463 40,620 Nontransaction accounts in domestic offices 148 Money market deposit accounts (MMDAs) n.a. n.a. n.a. 196,869 133,069 37,368 149 Other savings deposits n.a. n.a. n.a. 86,540 78,842 28,772 150 Time certificates of deposit of $100,000 or more n.a. n.a. n.a. 181,091 126,056 38,953 151 All other time deposits n.a. n.a. n.a. 276,545 304,360 143,442 152 Number of banks 12,384 235 n.a. n.a. 2,637 9,512 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Special Tables • March 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, September 30, 1990 Millions of dollars Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 1 Total assets* 2,604,005 2,040,2% 1,636,265 404,031 563,709 2 Cash and balances due from depository institutions 176,835 144,235 114,220 30,016 32,600 3 Cash items in process of collection and unposted debits 87,485 77,932 62,733 15,199 9,553 4 Currency and coin 22,097 18,134 15,216 2,918 3,%3 5 Balances due from depository institutions in the United States 32,057 20,445 14,667 5,778 11,612 6 Balances due from banks in foreign countries and foreign central banks 4,918 3,650 3,125 525 1,268 7 Balances due from Federal Reserve Banks 30,278 24,074 18,478 5,595 6,205 8 Total securities, loans and lease financing receivables, (net of unearned income) 2,249,318 1,746,610 1,415,925 330,685 502,708 9 Total securities, book value 451,765 338,864 262,335 76,529 112,901 10 U.S. Treasury securities 116,906 81,143 64,525 16,617 35,763 11 U.S. government agency and corporation obligations 210,280 166,321 130,753 35,569 43,959 12 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 123,372 103,738 82,368 2211,,337700 19,634 n All other 86,908 62,583 48,385 14,199 24,325 14 Securities issued by states and political subdivisions in the United States 68,472 52,097 39,131 12,966 16,375 15 Other domestic debt securities 47,118 33,834 24,363 9,472 13,284 16 All holdings of private certificates of participation in pools of residential mortgages 3,015 2,111 1,6% 415 905 17 All other 44,103 31,723 22,666 9,057 12,380 18 Foreign debt securities 2,394 1,982 810 1,172 411 19 6,595 3,486 2,754 733 3,108 20 Marketable 3,292 683 552 131 2,609 71 Investments in mutual funds 1,044 477 430 47 568 77 Other 2,665 279 172 107 2,387 23 Less: Net unrealized loss 418 73 50 23 345 24 Other equity securities 3,303 2,804 2,202 602 499 25 Federal funds sold and securities purchased under agreements to resell10 123,942 99,825 78,511 21,314 24,118 26 Federal funds sold 46,286 29,767 25,770 3,997 16,519 27 Securities purchased under agreements to resell 3,471 2,394 1,944 450 1,077 28 Total loans and lease financing receivables, gross 1,684,087 1,315,646 1,081,285 234,361 368,441 29 LESS: Unearned income on loans 10,445 7,693 6,173 1,519 2,752 30 Total loans and leases (net of unearned income) 1,673,610 1,307,921 1,075,079 232,842 365,689 Total loans, gross, by category 31 Loans secured by real estate 686,054 520,205 443,339 7766,,886666 165,849 32 Construction and land development 124,833 99,509 82,964 16,545 25,324 33 7,552 4,871 4,273 597 2,682 34 1-4 family residential properties 332,099 249,992 213,629 36,363 82,107 35 Revolving, open-end and extended under lines of credit 55,937 43,268 36,332 6,937 12,669 36 All other loans 276,162 206,724 177,298 29,426 69,438 37 Multifamily (5 or more) residential properties 18,776 14,364 12,703 1,661 4,412 38 Nonfarm nonresidential properties 202,793 151,469 129,769 21,699 51,324 39 Loans to commercial banks in the United States 26,762 22,110 14,677 7,433 4,652 40 Loans to other depository institutions in the United States 2,386 2,184 2,063 121 202 41 Loans to banks in foreign countries 4,291 4,110 1,953 2,157 181 42 Loans to finance agricultural production and other loans to farmers 14,098 10,455 9,504 951 3,643 43 Commercial and industrial loans 470,574 383,662 306,471 77,191 86,913 44 To U.S. addressees (domicile) 468,352 381,723 305,102 76,621 86,629 45 To non-U.S. addressees (domicile) 2,222 1,939 1,368 570 284 46 Acceptances of other banks" 1,296 736 653 84 560 47 Of U.S. banks 495 327 294 33 168 48 214 107 95 12 107 49 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 339,954 249,979 211,178 38,800 89,975 50 Credit cards and related plans 74,577 41,980 39,711 2,269 32,597 51 Other (includes single payment and installment) 116,578 71,419 60,614 10,805 45,160 52 Loans to foreign governments and official institutions 1,590 1,533 1,164 369 57 S3 Obligations (other than securities) of states and political subdivisions in the United States 34,153 28,539 21,235 7,303 5,614 54 Taxable 1,024 839 626 213 185 55 33,129 27,700 20,609 7,090 5,430 56 69,9% 63,890 45,533 18,357 6,107 57 Loans for purchasing and carrying securities 15,439 13,862 8,846 5,016 1,577 58 All other loans 54,557 50,028 36,687 13,341 4,530 59 Lease financing receivables 32,933 28,244 23,515 4,729 4,689 60 Customers' liability on acceptances outstanding 18,523 17,228 13,339 3,889 1,294 61 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs 34,988 29,732 17,635 12,097 5,257 62 Remaining assets 159,329 132,222 92,780 39,442 27,107 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 2,604,005 2,040,296 1,636,265 404,031 64 Total liabilities4 2,420,869 1,901,113 1,526,720 374,393 65 Total deposits 1,922,254 1,485,585 1,218,446 267,138 66 Individuals, partnerships, and corporations 1,771,027 1,365,135 1,123,968 241,168 67 U.S. government 5,799 4,924 4,281 643 68 States and political subdivisions in the United States 81,002 59,964 50,169 9,795 69 Commercial banks in the United States 31,544 28,407 21,320 7,087 70 Other depository institutions in the United States 7,982 5,994 5,136 858 71 Banks in foreign countries 7,665 7,084 4,177 2,907 72 Foreign governments and official institutions 1,654 1,566 1,181 386 73 Certified and official checks 15,579 12,510 8,216 4,294 74 Total transaction accounts 532,284 425,966 341,889 84,077 75 Individuals, partnerships, and corporations 454,347 359,236 292,136 67,100 76 U.S. government 4,451 3,807 3,314 493 77 States and political subdivisions in the United States 20,941 16,403 13,513 2,890 78 Commercial banks in the United States 24,755 22,825 17.316 5,509 79 Other depository institutions in the United States 4,287 3,552 2,921 632 80 Banks in foreign countries 7,136 6,880 4,048 2,832 81 Foreign governments and official institutions 788 753 426 327 82 Certified and official checks 15,579 12,510 8,216 4,294 83 Demand deposits (included in total transaction accounts) 369,821 302,346 238,001 64,346 84 Individuals, partnerships, and corporations 301,182 242,464 193,866 48,598 85 U.S. government 4,407 3,771 3,279 492 86 States and political subdivisions in the United States 11,712 9,603 7,940 1,663 87 Commercial banks in the United States 24,750 22,823 17,315 5,509 88 Other depository institutions in the United States 4,272 3,543 2,911 632 89 Banks in foreign countries 7,131 6,879 4,048 2,832 90 Foreign governments and official institutions 787 753 426 327 91 Certified and official checks 15,579 12,510 8,216 4,294 92 Total nontransaction accounts 1,389,969 1,059,618 876,557 183,061 93 Individuals, partnerships, and corporations 1,316,680 1,005,899 831,831 174,068 94 U.S. government 1,348 1,117 968 149 95 States and political subdivisions in the United States 60,061 43,561 36,656 6,905 96 Commercial banks in the United States 6,789 5,582 4,004 1,578 97 U.S. branches and agencies of foreign banks 606 219 65 155 98 Other commercial banks in the United States 6,183 5,363 3,939 1,424 99 Other depository institutions in the United States 3,695 2,442 2,215 226 100 Banks in foreign countries 529 204 129 75 101 Foreign branches of other U.S. banks 33 12 10 3 102 Other banks in foreign countries 496 192 119 72 103 Foreign governments and official institutions 867 813 754 59 104 Federal funds purchased and securities sold under agreements to repurchase12 260,808 218,875 159,223 59,652 105 Federal ftmds purchased 35,047 24,129 20,450 3,678 106 Securities sold under agreements to repurchase 29,368 15,185 12,857 2,328 107 Demand notes issued to the U.S. Treasury 31,040 28,185 22,787 5,398 108 Other borrowed money 83,809 60,151 47,052 13,099 109 Banks liability on acceptances executed and outstanding 18,935 17,641 13,704 3,937 110 Notes and debentures subordinated to deposits 1,418 916 856 60 111 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs 26,256 23,565 21.317 2,248 112 Remaining liabilities 102,605 89,761 64,652 25,109 113 Total equity capital9 183,136 139,183 109,545 29,638 MEMO 114 Holdings of commercial paper included in total loans, gross 1,752 688 624 64 115 Total individual retirement accounts (IRA) and Keogh plan accounts 108,964 85,002 70,580 14,421 116 Total brokered deposits 70,194 52,857 45,498 7,360 117 Total brokered retail deposits 36,355 24,707 20,821 3,885 118 Issued in denominations of $100,000 or less 8,010 4,358 4,066 293 119 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 28,345 20,348 16,756 3,593 Savings deposits 120 Money market deposit accounts (MMDAs) 333,184 265,642 219,306 46,337 121 Other savings accounts 166,149 128,459 96,559 31,900 122 Total time deposits of less than $100,000 550,298 410,161 348,948 61,213 123 Time certificates of deposit of $100,000 or more 302,756 223,613 191,550 32,063 124 Open-account time deposits of $100,000 or more 37,583 31,743 20,194 11,549 125 All NOW accounts (including Super NOW accounts) 159,744 121,772 102,213 19,559 126 Total time and savings deposits 1,552,432 1,183,238 980,446 202,792 Quarterly averages 127 Total loans 1,636,605 1,277,647 1,050,002 227,645 128 Obligations (other than securities) of states and political subdivisions in the United States ... 34,206 28,763 21,451 7,312 129 Transaction accounts (NOW accounts, ATS accounts, and telephone preauthorized transfer accounts) 162,080 123,374 103,762 19,612 Nontransaction accounts 130 Money market deposit accounts (MMDAs) 329,938 262,746 217,517 45,229 131 Other savings deposits 165,382 128,117 95,515 32,603 132 Time certificates of deposits of $100,000 or more 307,147 227,683 194,759 32,924 133 All other time deposits 580,905 436,446 363,938 72,508 134 Number of banks 2,872 1,583 1,330 253 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Special Tables • March 1991 4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities1,2 6 Consolidated Report of Condition, September 30, 1990 Millions of dollars Members NNoonn-- Item TToottaall mmeemmbbeerrss Total National State 1 Total assets6 2,982,607 2,189,870 1,755,084 434,785 792,738 2 Cash and balances due from depository institutions 200,608 153,928 122,045 31,882 46,680 3 Currency and coin 25,357 19,437 16,261 3,176 5,920 4 Noninterest-bearing balances due from commercial banks 31,415 18,096 13,429 4,667 13,319 5 Other 143,835 116,394 92,355 24,039 27,441 6 Total securities, loans, and lease financing receivables (net of unearned income) 2,591,010 1,881,273 1,522,710 358,563 709,736 7 Total securities, book value 567,309 383,625 298,868 84,757 183,683 8 U.S. Treasury securities and U.S. government agency and corporation obligations 417,006 282,396 223,772 58,624 134,610 9 Securities issued by states and political subdivisions in the United States 85,392 58,332 44,156 14,176 27,060 10 Other debt securities 57,013 38,830 27,718 11,112 18,183 11 All holdings of private certificates of participation in pools of residential mortgages .. 3,475 2,333 1,849 484 1,142 12 All other 53,538 36,497 25,869 10,627 17,041 13 Equity securities 7,898 4,067 3,221 845 3,831 14 Marketable 4,264 1,025 838 187 3,239 15 Investments in mutual funds 1,963 826 725 101 1,137 16 Other 2,835 312 197 115 2,523 17 Less: Net unrealized loss 534 112 83 29 421 18 Other equity securities 3,634 3,042 2,384 658 592 19 Federal funds sold and securities purchased under agreements to resell 146,391 109,935 86,673 23,262 36,456 20 Federal funds sold 68,438 39,708 33,779 5,930 28,730 21 Securities purchased under agreements to resell 3,767 2,563 2,097 466 1,204 22 Total loans and lease financing receivables, gross 1,889,780 1,396,257 1,144,012 252,245 493,523 23 LESS: Unearned income on loans 12,438 8,511 6,810 1,702 3,926 24 Total loans and leases (net of unearned income) 1,877,310 1,387,713 1,137,170 250,543 489,597 Total loans, gross, by category 25 Loans secured by real estate 788,853 560,164 474,357 85,807 228,689 26 Construction and land development 132,775 102,839 85,458 17,381 29,936 27 Farmland 17,318 8,032 6,828 1,204 9,287 28 1-4 family residential properties 388,536 272,213 230,814 41,399 116,323 29 Revolving, open-end loans, and extended under lines of credit 59,199 44,650 37,367 7,284 14,548 30 All other loans 329,337 227,563 193,448 34,116 101,774 31 Multifamily (5 or more) residential properties 20,798 15,083 13,266 1,817 5,715 32 Nonfarm nonresidential properties 229,426 161,997 137,991 24,006 67,429 33 Loans to depository institutions 33,832 28,571 18,810 9,761 5,261 34 Loans to finance agricultural production and other loans to farmers 33,211 16,958 14,729 2,229 16,253 35 Commercial and industrial loans 509,874 400,017 318,907 81,110 109,857 36 Acceptances of other banks 2,029 1,020 912 107 1,010 37 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 379,384 265,871 223,752 42,119 113,513 38 Credit cards and related plans 76,812 42,989 40,606 2,383 33,823 39 Other (includes single payment installment) 153,773 86,302 72,293 14,009 67,471 40 Obligations (other than securities) of states and political subdivisions in the United States 35,716 29,106 21,701 7,405 6,610 41 Taxable 1,086 863 648 216 222 42 Tax-exempt 34,630 28,243 21,053 7,189 6,388 43 All other loans 73,366 66,113 47,189 18,924 7,253 44 Lease financing receivables 33,515 28,437 23,654 4,783 5,079 45 Customers' liability on acceptances outstanding 18,539 17,241 13,350 3,891 1,298 46 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs 34,988 29,732 17,635 12,097 5,257 47 Remaining assets 172,451 137,428 96,979 40,449 35,023 48 Total liabilities and equity capital 2,982,607 2,189,870 1,755,084 434,785 792,738 49 Total liabilities4 2,764,839 2,037,235 1,634,970 402,265 727,604 50 Total deposits 2,257,360 1,618,025 1,323,841 294,183 639,335 51 Individuals, partnerships, and corporations 2,079,453 1,487,358 1,221,222 266,136 592,094 52 U.S. government 6,391 5,157 4,477 680 1,234 53 States and political subdivisions in the United States 102,946 67,971 56,676 11,296 34,974 54 Commercial banks in the United States 32,704 29,145 21,765 7,380 3,559 55 Other depository institutions in the United States 8,887 6,312 5,391 921 2,575 56 Certified and official checks 17,601 13,390 8,916 4,473 4,211 57 All other 9,379 8,691 5,394 3,297 688 58 Total transaction accounts 616,948 460,646 369,848 90,799 156,302 59 Individuals, partnerships, and corporations 529,544 389,979 317,005 72,974 139,566 60 U.S. government 4,937 3,999 3,474 525 939 61 States and political subdivisions in the United States 27,071 18,652 15,370 3,282 8,419 62 Commercial banks in the United States 25,346 23,333 17,601 5,732 2,012 63 Other depository institutions in the United States 4,511 3,651 3,002 649 861 64 Certified and official checks 17,601 13,390 8,916 4,473 4,211 65 All other 7,938 7,643 4,480 3,163 295 66 Demand deposits (included in total transaction accounts) 413,670 320,810 252,708 68,102 92,860 67 Individuals, partnerships, and corporations 339,838 258,573 206,790 51,782 81,265 68 U.S. government 4,879 3,957 3,433 523 923 69 States and political subdivisions in the United States 13,594 10,279 8,498 1,780 3,316 70 Commercial banks in the United States 25,339 23,332 17,600 5,732 2,007 71 Other depository institutions in the United States 4,487 3,638 2,990 648 849 72 Certified and official checks 17,601 13,390 8,916 4,473 4,211 73 All other 7,932 7,642 4,480 3,162 290 74 Total nontransaction accounts 1,640,412 1,157,379 953,994 203,385 483,033 75 Individuals, partnerships, and corporations 1,549,908 1,097,379 904,218 193,162 452,529 76 U.S. government 1,454 1,159 1,004 155 295 77 States and political subdivisions in the United States 75,875 49,319 41,306 8,013 26,555 78 Commercial banks in the United States 7,358 5,812 4,164 1,648 1,547 79 Other depository institutions in the United States 4,376 2,662 2,389 273 1,714 80 All other 1,441 1,048 914 134 393 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks All 4.22—Continued Members Item TToottaall mmee NN mm oo bb nn ee -- rrss Total National State 81 Federal funds purchased and securities sold under agreements to repurchase 263,788 220,277 160,230 60,047 43,511 82 Federal funds purchased 36,321 24,703 20,797 3,906 11,617 83 Securities sold under agreements to repurchase 31,074 16,013 13,517 2,496 15,061 84 Demand notes issued to the U.S. Treasury 31,657 28,443 22,992 5,451 3,214 85 Other borrowed money 84,710 60,494 47,339 13,154 24,216 86 Banks liability on acceptances executed and outstanding 18,952 17,654 13,715 3,939 1,298 87 Notes and debentures subordinated to deposits 1,535 944 877 67 591 88 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs 26,256 23,565 21,317 2,248 2,691 89 Remaining liabilities 106,837 91,399 65,975 25,424 15,438 90 Total equity capital9 217,768 152,635 120,114 32,520 65,134 MEMO 91 Assets held in trading accounts13 25,591 24,193 12,965 11,228 1,397 92 U.S. Treasury securities 10,647 10,431 3,506 6,925 216 93 U.S. government agency corporation obligations 2,439 2,245 2,010 235 193 94 Securities issued by states and political subdivisions in the United States 1,076 1,044 816 228 32 95 Other bonds, notes, and debentures 227 225 101 124 2 96 Certificates of deposit 901 876 268 608 25 97 Commercial paper 53 53 53 0 0 98 Bankers acceptances 2,840 2,659 1,357 1,302 181 99 Other 6,519 6,251 4,477 1,774 268 100 Total individual retirement accounts (IRA) and Keogh plan accounts 127,412 92,062 76,229 15,832 35,350 101 Total brokered deposits 70,987 53,080 45,658 7,422 17,907 102 Total brokered retail deposits 37,077 24,908 20,971 3,937 12,169 103 Issued in denominations of $100,000 or less 8,659 4,555 4,212 343 4,104 104 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 28,418 20,353 16,759 3,594 8,065 Savings deposits 105 Money market deposit accounts (MMDAs) 370,731 281,806 232,207 49,600 88,925 106 Other savings deposits 195,041 139,975 105,663 34,312 55,066 107 Total time deposits of less than $100,000 693,583 463,739 391,391 72,348 229,844 108 Time certificates of deposit of $100,000 or more 342,084 239,605 204,120 35,485 102,479 109 Open-account time deposits of $100,000 or more 38,972 32,253 20,613 11,640 6,719 110 All NOW accounts (including Super NOW) 199,288 137,562 115,137 22,425 61,726 111 Total time and savings deposits 1,843,690 1,297,215 1,071,133 226,082 546,475 Quarterly averages 112 Total loans 1,836,987 1,356,350 1,111,320 245,030 480,637 113 Transaction accounts (NOW accounts, ATS accounts, and telephone and preauthorized transfer accounts) 202,700 139,539 116,973 22,566 63,161 Nontransaction accounts 114 Money market deposit accounts (MMDAs) 367,306 278,805 230,313 48,492 88,501 115 Other savings deposits 194,154 139,586 104,589 34,997 54,568 116 Time certificates of deposit of $100,000 or more 346,100 243,521 207,202 36,319 102,579 117 All other time deposits 724,347 490,151 406,552 83,599 234,196 118 Number of banks 12,384 5,025 4,016 1,009 7,359 1. Effective Mar. 31, 1984, the report of condition was substantially revised for refers to those respondents whose assets, as of June 30 of the previous calendar commercial banks. Some of the changes are as follows: (1) Previously, banks with year, were less than $100 million. (These respondents filed the FFIEC 034 call international banking facilities (IBFs) that had no other foreign offices were report.) considered domestic reporters. Beginning with the Mar. 31, 1984 call report these 6. Since the domestic portion of allowances for loan and lease losses and banks are considered foreign and domestic reporters and must file the foreign and allocated transfer risk reserve are not reported for banks with foreign offices, the domestic report of condition; (2) banks with assets greater than $1 billion have components of total assets (domestic) will not add to the actual total (domestic). additional items reported; (3) the domestic office detail for banks with foreign 7. Since the foreign portion of demand notes issued to the U.S. Treasury is not offices has been reduced considerably; and (4) banks with assets under $25 million reported for banks with foreign offices, the components of total liabilities (foreign) have been excused from reporting certain detail items. will not add to the actual total (foreign). 2. The "n.a." for some of the items is used to indicate the lesser detail available 8. The definition of 'all other' varies by report form and therefore by column in from banks without foreign offices, the inapplicability of certain items to banks this table. See the instructions for more detail. that have only domestic offices and/or the absence of detail on a fully consolidated 9. Equity capital is not allocated between the domestic and foreign offices of basis for banks with foreign offices. banks with foreign offices. 3. All transactions between domestic and foreign offices of a bank are reported 10. Only the domestic portion of federal funds sold and securities purchased in "net due from" and "net due to." All other lines represent transactions with under agreements to resell are reported here, therefore, the components will not parties other than the domestic and foreign offices of each bank. Since these add to totals for this item. intraoffice transactions are nullified by consolidation, total assets and total 11. "Acceptances of other banks" is not reported by domestic respondents less liabilities for the entire bank may not equal the sum of assets and liabilities than $300 million in total assets, therefore the components will not add to totals for respectively, of the domestic and foreign offices. this item. 4. Foreign offices include branches in foreign countries, Puerto Rico, and in 12. Only the domestic portion of federal funds purchased and securities sold U.S. territories and possessions; subsidiaries in foreign countries; all offices of are reported here, therefore the components will not add to totals for this item. Edge act and agreement corporations wherever located and IBFs. 13. Components of assets held in trading accounts are only reported for banks 5. The 'over 100' column refers to those respondents whose assets, as of June with total assets of $1 billion or more; therefore the components will not add to the 30 of the previous calendar year, were equal to or exceeded $100 million. (These totals for this item. respondents file the FFIEC 032 or FFIEC 033 call report.) The 'under 100' column Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Federal Reserve Board of Governors 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. SEEGMAN, 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 DALE W. HENDERSON, Assistant Director J. VIRGIL MATTINGLY, JR., General Counsel RICHARD M. ASHTON, Associate General Counsel PETER HOOPER III, Assistant Director OLIVER IRELAND, Associate General Counsel KAREN H. JOHNSON, Assistant Director RALPH W. SMITH, JR., Assistant Director RICKI R. TIGERT, Associate General Counsel SCOTT G. ALVAREZ, Assistant General Counsel MARYELLEN A. BROWN, Assistant to the General Counsel DIVISION OF RESEARCH AND STATISTICS MICHAEL J. PRELL, Director OFFICE OF THE SECRETARY EDWARD C. ETTIN, Deputy Director WILLIAM W. WILES, Secretary THOMAS D. SIMPSON, Associate Director LAWRENCE SLIFMAN, Associate Director JENNIFER J. JOHNSON, Associate Secretary DAVID J. STOCKTON, Associate Director BARBARA R. LOWREY, Associate Secretary MARTHA BETHEA, Deputy Associate Director PETER A. TINSLEY, Deputy Associate Director DIVISION OF CONSUMER 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 HERBERT A. BIERN, Assistant Director BRENT L. BOWEN, Inspector General JOE M. CLEAVER, Assistant Director BARRY R. SNYDER, Assistant Inspector General ROGER T. COLE, Assistant Director JAMES I. GARNER, Assistant Director JAMES D. GOETZINGER, Assistant Director MICHAEL G. MARTINSON, Assistant Director ROBERT S. PLOTKIN, Assistant Director SIDNEY M. SUSSAN, Assistant Director LAURA M. HOMER, Securities Credit Officer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A79 EDWARD W. KELLEY, JR. DAVID W. MULLINS, JR. JOHN P. LA WARE OFFICE OF OFFICE OF STAFF DIRECTOR FOR STAFF DIRECTOR FOR MANAGEMENT FEDERAL RESERVE BANK ACTIVITIES S. DAVID FROST, Staff Director THEODORE E. ALLISON, Staff Director 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, JR., 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 DIRECTOR FOR INFORMATION RESOURCES MANAGEMENT STEPHEN R. MALPHRUS, 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

A80 Federal Reserve Bulletin • March 1991 Federal Open Market Committee and Advisory Councils FEDERAL OPEN MARKET COMMITTEE MEMBERS ALAN GREENSPAN, Chairman E. GERALD CORRIGAN, Vice Chairman WAYNE D. ANGELL SILAS 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 J. ALFRED BROADDUS, JR., Associate Economist NORMAND R.V. BERNARD, Deputy Secretary RICHARD G. DAVIS, Associate Economist JOSEPH R. COYNE, Assistant Secretary DAVID E. LINDSEY, Associate Economist GARY P. GILLUM, Assistant Secretary LARRY J. PROMISEL, Associate Economist J. VIRGIL MATTINGLY, JR., General Counsel KARL A. SCHELD, Associate Economist ERNEST T. PATRIKIS, Deputy General Counsel CHARLES J. SIEGMAN, Associate Economist MICHAEL J. PRELL, Economist THOMAS D. SIMPSON, Associate Economist EDWIN M. TRUMAN, Economist LAWRENCE SLIFMAN, Associate Economist JACK H. BEEBE, Associate Economist SHEILA T. TSCHINKEL, 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 PAUL HAZEN, President LLOYD P. JOHNSON, Vice President 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

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 TOYE 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 MICHAEL M. GREENFIELD, St. Louis, Missouri DAVID P. WARD, Chester, New Jersey 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

A82 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, 1989-90. 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 Setdement 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 fifty 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

A83 Signature Rules: Regulation B 158. THE ADEQUACY AND CONSISTENCY OF MARGIN REQUIRE- Timing Requirements for Adverse Action Notices: Regulation B MENTS IN THE MARKETS FOR STOCKS AND DERIVATIVE What An Adverse Action Notice Must Contain: Regulation B PRODUCTS, by Mark J. Warshawsky with the assistance of Understanding Prepaid Finance Charges: Regulation Z Dietrich Earnhart. September 1989. 23 pp. 159. NEW DATA ON THE PERFORMANCE OF NONBANK SUB- SIDIARIES OF BANK HOLDING COMPANIES, by Nellie Liang STAFF STUDIES: Summaries Only Printed in the and Donald Savage. February 1990. 12 pp. Bulletin 160. BANKING MARKETS AND THE USE OF FINANCIAL SER- Studies and papers on economic andfinancial subjects that are of VICES BY SMALL AND MEDIUM-SIZED BUSINESSES, by Gregory E. Elliehausen and John D. Wolken. September general interest. Requests to obtain single copies of the full text 1990. 35 pp. or to be added to the mailing list for the series may be sent to Publications Services. Staff Studies 114-145 are out of print. REPRINTS OF SELECTED Bulletin ARTICLES 146. THE ROLE OF THE PRIME RATE IN THE PRICING OF Some Bulletin articles are reprinted. The articles listed below BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84, by are those for which reprints are available. Most of the articles Thomas F. Brady. November 1985. 25 pp. reprinted do not exceed twelve pages. 147. REVISIONS IN THE MONETARY SERVICES (DIVISIA) IN- DEXES OF THE MONETARY AGGREGATES, by Helen T. Farr Limit of ten copies and Deborah Johnson. December 1985. 42 pp. 148. THE MACROECONOMIC AND SECTORAL EFFECTS OF THE Recent Developments in the Bankers Acceptance Market. 1/86. ECONOMIC RECOVERY TAX ACT: SOME SIMULATION The Use of Cash and Transaction Accounts by American RESULTS, by Flint Brayton and Peter B. Clark. December Families. 2/86. 1985. 17 pp. Financial Characteristics of High-Income Families. 3/86. 149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS IN Prices, Profit Margins, and Exchange Rates. 6/86. BANKING BEFORE AND AFTER ACQUISITION, by Stephen Agricultural Banks under Stress. 7/86. A. Rhoades. April 1986. 32 pp. Foreign Lending by Banks: A Guide to International and U.S. 150. STATISTICAL COST ACCOUNTING MODELS IN BANKING: Statistics. 10/86. A REEXAMINATION AND AN APPLICATION, by John T. Recent Developments in Corporate Finance. 11/86. Rose and John D. Wolken. May 1986. 13 pp. Measuring the Foreign-Exchange Value of the Dollar. 6/87. 151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT PRICING Changes in Consumer Installment Debt: Evidence from the 1983 FROM 1983 THROUGH 1985, by Patrick I. Mahoney, Alice and 1986 Surveys of Consumer Finances. 10/87. P. White, Paul F. O'Brien, and Mary M. McLaughlin. Home Equity Lines of Credit. 6/88. January 1987. 30 pp. Mutual Recognition: Integration of the Financial Sector in the 152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A European Community. 9/89. REVIEW OF THE LITERATURE ,by Mark J. Warshawsky. The Activities of Japanese Banks in the United Kingdom and in April 1987. 18 pp. the United States, 1980-88. 2/90. 153. STOCK MARKET VOLATILITY, by Carolyn D. Davis and Industrial Production: 1989 Developments and Historical Alice P. White. September 1987. 14 pp. Revision. 4/90. 154. THE EFFECTS ON CONSUMERS AND CREDITORS OF U.S. International Transactions in 1989. 5/90. PROPOSED CEILINGS ON CREDIT CARD INTEREST RATES, Recent Developments in Industrial Capacity and Utilization. by Glenn B. Canner and James T. Fergus. October 1987. 6/90. 26 pp. Developments Affecting the Profitability of Commercial Banks. 155. THE FUNDING OF PRIVATE PENSION PLANS, by Mark J. 7/90. Warshawsky. November 1987. 25 pp. Recent Developments in Corporate Finance. 8/90. 156. INTERNATIONAL TRENDS FOR U.S. BANKS AND BANKING U.S. Exchange Rate Policy: Bretton Woods to Present. 11/90. MARKETS, by James V. Houpt. May 1988. 47 pp. The Transmission Channels of Monetary Policy: How Have 157. M2 PER UNIT OF POTENTIAL GNP AS AN ANCHOR FOR They Changed? 12/90. THE PRICE LEVEL, by Jeffrey J. Hallman, Richard D. Porter, and David H. Small. April 1989. 28 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 Index to Statistical Tables References are to pages A3-A77although 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 finance companies, 36 Depository institutions Federal Reserve Banks, 10 Reserve requirements, 8 Financial institutions, 26 Reserves and related items, 3,4, 5,12 Foreign banks, U.S. branches and agencies, 21 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 Banks (See Loans) Bankers balances, 18-20, 72, 74, 76, (See also Foreigners) Dividends, corporate, 35 Bonds (See also U.S. government securities) New issues, 34 Rates, 24 EMPLOYMENT, 47 Branch banks, 21, 57 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 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 Federal Land Banks, 38 Commercial and industrial loans, 16,18,19,20,21, Federal National Mortgage Association, 33, 37, 38 72,74,76 Federal Reserve Banks Consumer loans held, by type and terms, 39,40 Condition statement, 10 Loans sold outright, 19 Discount rates (See Interest rates) Nondeposit funds, 17 U.S. government securities held, 4, 10,11, 30 Number by classes, 73, 75, 77 Federal Reserve credit, 4, 5, 10, 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 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

A85 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 Commercial banks, 18 Gross national product, 53 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) Mutual funds, 35 Dealer transactions, positions, and financing, 32 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

A86 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* 02106 Richard N. Cooper Richard F. Syron Vacancy 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.LeeHoskins 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 FredR. Herr1 Jacksonville 32231 Hugh H. Brown James D. Hawkins1 Miami 33152 Dorothy C. Weaver James T. Curry m 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 Wm. Earle Love Karl W. Ashman Louisville 40232 Lois H. Gray 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. Holloway 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, m Sammie C. Clay Houston 77252 Gilbert D. Gaedcke, Jr. Robert Smith, m1 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

A87 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories Helen j Minneapolis^ ^ /* 1 j { (7)1 \ V (7) f \ Detroit \S"'L.keCi,y / w QJ TT? v Kansas City f- fcirl®"y \ impknf^M 5 "ge/es - — ^ -—T ittleRock Birmi*gk*i*A®ittHta Dallas® \ J ^H } © RNTSO J (IT 90 j.cX QflflMp ISPISIPfS Hp IS Q 111111118 HAWAII El bBHBI 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