Federal Reserve Bulletin, 1991-04

VOLUME 77 • NUMBER 4 • APRIL 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 203 ELECTRONIC TRANSFER OF ernors, it was about 1 percent below its GOVERNMENT BENEFITS level at the beginning of the period. To increase the efficiency and minimize the 235 INDUSTRIAL PRODUCTION costs of the delivery systems of government Industrial production fell 0.4 percent in Janbenefits and to improve the service to benuary after drops of 1.6 percent and 1.1 efit recipients, agencies at the federal and percent (revised) in November and Decemstate levels are actively working toward ber. Total industrial capacity utilization electronic delivery of these payments. This dropped 0.5 percentage point in January to article gives an overview of the developing 79.9 percent, nearly 3 percentage points interest in EBT among the various parties. below its level of a year ago. It describes some of the pilot programs that have tested the practicality of electronic 238 STATEMENTS TO THE CONGRESS delivery and reviews issues—including those related to the Electronic Fund Trans- Alan Greenspan, Chairman, Board of Govfer Act and the Federal Reserve Board's ernors, discusses title III of "The Intermar- Regulation E—that the implementation of ket Coordination Act of 1991" (S. 207) and EBT programs raises. says that this bill addresses important issues affecting the integrity of our financial markets and that, in the work on this bill, 218 PAYMENT OF HOUSEHOLD DEBTS contributions have been made toward better understanding of these issues and The indebtedness of U.S. households grew toward strengthening the regulatory syssubstantially in the decade that ended last tem, before the Senate Committee on Agriyear. This article (1) reviews various statisculture, Nutrition, and Forestry, February tics on debt growth, personal bankruptcies, 7, 1991. and loan delinquency rates that provide some aggregate information on the extent to 240 Chairman Greenspan focuses on monetary which households may be experiencing policy and the current situation in the econdebt payment problems; and (2) examines omy and says that the current downturn in data on late payments by individual borrow- business activity may prove shorter and ers obtained from surveys of households shallower than most previous postwar reconducted for the Federal Reserve by the cessions in part because of the reversal of Survey Research Center at the University the run-up in oil prices and the substantial of Michigan. decline in interest rates over the past year and a half, before the Senate Committee on Banking, Housing, and Urban Affairs, Feb- 230 TREASURY AND FEDERAL RESERVE ruary 20, 1991. (Chairman Greenspan pre- FOREIGN EXCHANGE OPERATIONS sented identical testimony before the Subcommittee on Domestic Monetary Policy of The dollar closed the November 1990-Janthe House Committee on Banking, Finance uary 1991 period down slightly against the and Urban Affairs, February 21, 1991.) German mark and up slightly against the Japanese yen; on a trade-weighted basis, as 246 John P. La Ware, member, Board of Govermeasured by the staff of the Board of Gov- nors, discusses the proposed "Financial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industry Reform and Capital Enforcement the strength of the business expansion, the Act" (H.R. 192) and says that the bill behavior of the monetary aggregates, and highlights two of the basic problems that developments in foreign exchange and doneed to be addressed in reforming the finan- mestic financial markets. The reserve concial services industry—expanding the activ- ditions contemplated by the Committee ities that banking organizations are autho- were expected to be consistent with some rized to deliver and developing legislation pickup in monetary growth, including exto limit the size of potential taxpayer expo- pansion of M2 and M3 at annual rates of sure for deposit insurance in the commer- about 4 and 1 percent respectively over the cial banking industry—before the Subcom- four-month period from November to mittee on Financial Institutions Super- March. vision, Regulation and Insurance of the House Committee on Banking, Finance and 263 LEGAL DEVELOPMENTS Urban Affairs, February 28, 1991. Various bank holding company, bank service corporation, and bank merger orders; 250 ANNOUNCEMENTS and pending cases. Meeting of Consumer Advisory Council. 284 MEMBERSHIP OF THE BOARD OF Amendments to Regulation CC (Availabili- GOVERNORS OF THE FEDERAL ty of Funds and Collection of Checks). RESERVE SYSTEM, 1913-91 Postponement of new automated clearing- List of appointive and ex officio members. house fee. Effective date of Governor Seger's resigna- Ai FINANCIAL AND BUSINESS STATISTICS tion. These tables reflect data available as of Changes in the statistical appendix to the February 26, 1991. Federal Reserve Bulletin. A3 Domestic Financial Statistics Revisions to money stock data. A46 Domestic Nonfinancial Statistics A55 International Statistics 256 RECORD OF POLICY ACTIONS OF THE FEDERAL OPEN MARKET COMMITTEE A71 GUIDE TO TABULAR PRESENTATION, STATISTICAL RELEASES, AND SPECIAL At its meeting on December 18, 1990, the TABLES Committee adopted a directive that called for an initial slight reduction in the degree of A78 BOARD OF GOVERNORS AND STAFF pressure on reserve positions and that provided for giving emphasis to potential de- A80 FEDERAL OPEN MARKET COMMITTEE velopments that might require some further AND STAFF; ADVISORY COUNCILS easing later in the intermeeting period. The Committee also noted that open market A82 FEDERAL RESERVE BOARD operations might need to take account of a PUBLICATIONS possible reduction in the discount rate early in the intermeeting period. Subsequent to A84 INDEX TO STATISTICAL TABLES the initial easing, somewhat lesser reserve restraint would be acceptable, or slightly A86 FEDERAL RESERVE BANKS, greater reserve restraint might be accept- BRANCHES, AND OFFICES able, during the intermeeting period depending on progress toward price stability, A87 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Electronic Transfer of Government Benefits John C. Wood and Dolores S. Smith, of the administers the food stamp program at the fed- Board's Division of Consumer and Community eral level through its Food and Nutrition Service, Affairs, prepared this article. has been a pioneer in testing the use of EBT to replace the issuance of food stamp coupons. In 1990, the federal government paid recipients Electronic delivery of food stamp benefits enmore than $400 billion in social security and ables eligible recipients, using electronic POS other government benefits, and state-adminis- terminals at participating grocery stores, to shop tered programs paid another $95 billion or so. with an EBT card instead of with coupons. The Almost 60 percent of the federal payments and Congress recently authorized USDA to offer nearly all the state funds were disbursed by paper state agencies EBT systems as an alternative check. To increase the efficiency and minimize method for delivering food stamp benefits. Until the cost of disbursing funds, and to improve the now, states have been required by federal law to service to benefit recipients, agencies at the issue paper coupons unless they obtain special federal and state levels are working to move approval for EBT demonstration projects. toward electronic delivery of these payments. An EBT system offers opportunities for im- The Social Security Administration and the De- proving the delivery service to recipients, maxipartment of the Treasury, for example, have mizing the efficiency of operations at state agenlaunched a major effort to increase the direct cies, and minimizing costs for all parties. It also deposit of social security payments to recipients' brings major challenges: Building these systems bank accounts. to work efficiently and cost effectively for all the A problem arises when an individual has no parties involved will take cooperative efforts— deposit account at a financial institution: Benefits among government agencies at the federal and cannot then be disbursed by direct deposit of state levels, financial institutions, regional netfunds. Government agencies are exploring an works of ATMs and POS terminals, members of alternative method called electronic benefit the retail food industry, others in the private transfer (EBT) for delivering cash benefits, par- sector, and benefit recipients. This article gives ticularly to low-income recipients. In the EBT an overview of the developing interest in EBT systems now in place, recipients use automated among these various parties. It describes some of teller machines (ATMs), point-of-sale (POS) ter- the pilot programs that have tested the practicalminals, and other electronic devices to withdraw ity of electronic delivery and reviews issues— their benefits. The recipient generally gains ac- including those related to the Electronic Fund cess to the funds by using a combination of a Transfer Act and the Federal Reserve Board's plastic card with a magnetic stripe and a personal Regulation E—that the implementation of EBT identification number. The electronic terminals programs raises. that disburse benefits are attended in some cases, unattended in others. Some facilities are part of an existing commercial ATM or POS network. BACKGROUND Other facilities are specially dedicated terminals in a stand-alone system—that is, a system that Most government benefits today are paid by operates for the sole benefit of these recipients. checks mailed to recipients. The check-based Government interest in EBT is not limited to system can pose difficulties, however. Because those agencies that disburse cash benefits. The checks can be lost in the mail or stolen, some U.S. Department of Agriculture (USDA), which recipients may never receive their checks and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

204 Federal Reserve Bulletin • April 1991 1. Families, total and those without bank accounts, participating in selected government programs, 1985 Number in thousands Total Without bank accounts PPrrooggrraamm Percent of U.S. population' Number Percent Number Aid to Families with Dependent Children 3 2,791 75 2,084 General assistance 1 798 74 587 Food stamps 6 5,916 73 4,294 Women and infant care 1 1,384 56 782 Supplemental security income 2 2,205 50 1,106 Social security 26 23,887 14 3,395 Pensions 8 7,770 8 597 1. Based on a projected population of 92.9 million families. of Income and Program Participation, 1985 data as analyzed by the General SOURCE. U.S. Department of Commerce, Bureau of the Census, Survey Accounting Office, Government Check-Cashing Issues (GAO, 1988), p. 44. may need to have them replaced. Delays in mail households in the two highest quintiles. Many of delivery may make the benefits late. Those re- these low-income households receive governcipients who have no deposit accounts may have ment benefit payments. difficulty or may incur high costs in converting Some of the reasons that low-income conthe checks into spendable funds. And recipients sumers give for not holding deposit accounts who must take the entire benefit payment at once are the cost, the lack of sufficient funds to open run risks in carrying around several hundred an account or to make having one worthwhile, dollars or more. difficulty in monitoring the account balance, In some benefit programs, such as social se- preference for dealing with cash and money curity and U.S. government pensions, a large orders rather than checks, mistrust of financial proportion of recipients receive the funds institutions, and inconvenient bank hours or through direct deposit to their account at a locations. financial institution, a system that is well estab- Consumers without an account can receive lished and generally works smoothly for them. government payments in check form, cash the Those recipients who have no bank account, check, and conduct their financial affairs using however, do not have the option of direct de- cash and money orders. They may have probposit. lems, however, in places where depository institutions will not cash checks for noncus- Account Holding and Check Cashing tomers. Surveys show varying results on the willingness of depository institutions to cash According to Census Bureau data, the propor- checks for noncustomers. A report by the Gention of households not having deposit accounts eral Accounting Office (GAO) to the Congress is considerably higher among recipients of gov- indicated that in 1985 some 86 percent of banks ernment benefit programs than among the gen- and 55 percent of thrifts cashed U.S. Treasury eral population. In 1985, 39 percent of families receiving state and local government benefit 2. Percentage of households holding no deposit payments had no bank accounts, compared accounts, by income quintile, 1977 and 19861 with about 17 percent of all U.S. families. A similar trend holds for federal benefit programs: Quintile 1977 1986 Among recipients of supplemental security in- 22222228888888 22222226666666 come payments, for example, 50 percent had no Second 11111110000000 9999999 Third 4444444 5555555 bank accounts (table 1). Fourth 2222222******* ************** Highest Low-income consumers are in general the least likely to hold deposit accounts: As table 2 shows, All 9999999 11111110000000 26 percent of households in the lowest income 1. * Less than 0.5 percent. quintile in 1986 had no checking or savings SOURCES. Thomas A. Durkin and Gregory E. Elliehausen, 1977 Consumer Credit Survey; June 1986 Survey of Consumer Attitudes, Survey account, compared with less than 0.5 percent of Research Center, University of Michigan. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Electronic Transfer of Government Benefits 205 checks for noncustomers. The GAO noted that Legislative Proposals other studies had yielded differing figures: The Independent Bankers Association of America Concern that existing systems may inadequately (IBAA) had surveyed 1,767 banks, one quarter meet the financial services needs of benefit recipof its membership, in 1984 and found that 68 ients (or of low-income consumers in general) percent of responding institutions cashed gov- has led to proposed legislation intended to remernment checks free of charge for noncus- edy the situation. Bills introduced in recent sestomers. In contrast, the Association of Commu- sions of the Congress call for depository institunity Organizations for Reform Now in a 1986 tions to offer government check-cashing services study of 344 institutions reported 12 percent and basic banking accounts. (Basic banking often were willing, and the Consumer Federation of refers to an account that has low fees and mini- America (CFA) in a 1988 survey of 191 institu- mum balance requirements and that allows the tions found 29 percent. writing of a limited number of checks.) In the Differences in the results of these studies may current session, Chairman Henry Gonzalez of have resulted partly from the way the surveys the House Committee on Banking, Finance and were conducted. The GAO study was limited to Urban Affairs has introduced an omnibus bill for the cashing of U.S. Treasury checks. That some the reform and restructuring of the banking ininstitutions may be more willing to cash federal dustry that includes provisions for basic banking checks than to cash state or local government and government check cashing. H.R. 6 calls for checks could have contributed to the high per- banks to offer basic accounts with limited fees, a centage of institutions in the GAO study. More- minimum balance of no more than $25, a maxiover, of the four surveys, the GAO survey was mum balance of $1,000 (to limit the use of the the only one based on sampling techniques that accounts to low-income consumers), and at least could be projected nationwide. Institutions in ten withdrawals per month. The bill also calls for the CFA survey were located mainly in urban institutions to cash government checks of $1,500 areas; those in the IBAA survey, mostly in or less for a fee of no more than $2.00 for small towns or rural communities where banks individuals who register with the bank. appear more willing to cash checks for noncus- Senator Howard Metzenbaum has also introtomers than are their counterparts in metropol- duced legislation. S.415 is similar to the basic itan areas. banking provisions of H.R. 6; the minimum bal- Cashing checks for a fee at nonbank locations, ance that banks can set for maintenance of the such as check-cashing centers or various retail account, however, cannot exceed $1.00. S.414 outlets, is an alternative for these recipients. generally parallels the government check-cashing According to the National Check Cashers Asso- provisions of H.R.6, except that the permissible ciation, a trade group, about 3,000 check-cashing fee for check cashing, rather than being set at centers were in operation in 1988, mostly in $2.00, is limited to an amount to be determined urban areas. Check-cashing fees are regulated in by the Federal Reserve Board based on cost only a few states, including Illinois, New York, studies. Financial institutions generally have opand New Jersey. Even in these states, the fees posed such legislation, arguing that it would allowed may seem high to low-income recipients subject them to increased risk from fraud and of government benefits. Cashing a $500 social costs not adequately covered by revenues. They security check, for example, can cost up to $7.50 also have said that such legislation is unnecesin New Jersey, where cashing out-of-state sary because many institutions already offer bachecks (including checks drawn on the U.S. sic banking and government check-cashing ser- Treasury) is subject to a 1.5 percent charge. A vices on a voluntary basis. 1987 survey of sixty check-cashing centers in Some states—including Connecticut, Illinois, twenty major cities by the CFA reported a me- Massachusetts, Minnesota, Pennsylvania, and dian charge to cash a $500 government check of Rhode Island—have enacted basic banking or 1.5 percent ($7.50) and an average charge of 1.69 check-cashing laws. Most of these laws are more percent ($8.47). limited than the legislation before the Congress, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

206 Federal Reserve Bulletin • April 1991 and some apply only to individuals in certain age that annual savings of up to $250 million are groups. In Massachusetts, for example, banks possible. may not impose fees, other than for the dishonor Among the federal program agencies that adof a check for insufficient funds, on a checking or minister benefits delivery to recipients, two are savings account held by anyone 65 years of age at the forefront of EBT development: USDA's or older or 18 years or younger. In Minnesota Food and Nutrition Service, with its food stamp and Pennsylvania, basic banking laws come into program, and the Family Support Administration play only when an institution engages in or is (part of the Department of Health and Human applying for interstate operations. Services), which oversees the delivery of Aid to Though the pending federal legislation ad- Families with Dependent Children (AFDC) bendresses some needs of government benefit recip- efits. The agencies have funded, separately and ients—primarily those revolving around fees and jointly, pilot projects to test EBT in different minimum balances for accounts—it does not environments, utilizing various electronic techresolve other problems that recipients are per- nologies and systems. They serve as the conduit ceived to have with the present paper-based for federal dollars to state government agencies, payment system. which will also be major players in the development of EBT given their role as the local administrators of food stamp, AFDC, and other public SUPPORT FOR EBT assistance programs. A major impetus for the development and Interest in and support for examining EBT as a growth of food stamp EBT programs, in particdelivery alternative to paper-based systems is ular, will come from the recent enactment of the building in both the public and private sectors. Food, Agriculture, Conservation, and Trade Act The Department of the Treasury, which serves as of 1990 (Pub. L. 101-624), which amends the the federal government's money manager, has Food Stamp Act. Until now, federal law has taken a lead in promoting the development of required that benefits under the food stamp prosystems for electronic benefit transfers as a com- gram be issued in paper form. To engage in EBT, plement to the agency's activities on the direct- state agencies have had to obtain a special waiver deposit front. from USD A for demonstration projects. With One of the Treasury's goals for EBT is to help USDA's approval, states will be able to establish ensure that cost-effective electronic technologies EBT programs for food stamp benefits on a are used in ways that best meet the needs of both permanent basis, instead of only as pilot projects the recipients and the providers. For the past two like those instituted thus far. years, the Treasury has regularly convened task The 1990 amendments direct USDA to issue forces with representation from government regulations establishing standards for cost-effecagencies, financial institutions, the retail food tiveness; protection of recipients (to ensure "priindustry, and consumer groups. Through these vacy, ease of use, and access to and service in efforts, the Treasury is seeking to ensure the retail food stores"); terms of participation by coordination of EBT among the multitude of retailers and financial institutions; and the securfederal agencies engaged in benefits delivery and ity, reliability, and processing speed of the systo facilitate effective liaison with the private tem. The regulations are to ensure that the opersector. ational cost of an EBT system, including the pro In support of the Treasury's interagency coor- rata cost of capital expenditures and other startdination, the Office of Management and Budget up costs, does not exceed the cost of the paper- (OMB) recently established a steering committee based food stamp system. of top-level officials to develop the government's Another new federal law may provide added plan for implementing EBT. OMB has identified incentive for greater use of electronics for gov- EBT as a management objective, its goal being to ernmental fund transfers. The Cash Management improve the quality and reduce the costs of Improvement Act of 1990 (Pub. L. 101-453) benefit payment services. The agency projects directs the Treasury to issue regulations that will Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Electronic Transfer of Government Benefits 207 ensure equity between federal and state agencies Electronic Funds Transfer Association, a group in the transfer of funds. The act will require the representing the various industries involved in payment of interest if funds are drawn in advance electronic funds transfer, established an interinof the state's need or are held longer than neces- dustry task force to target the creation of operasary. If a state agency draws federal funds on the tional standards for implementing EBT and to same day that benefit checks are mailed, for resolve other issues while systems are still being example, the state may have to pay interest to developed and tested. Representatives on the the federal government from that day until the task force include financial institutions, retailers, day the checks are paid. If the agency instead data-processing vendors, ATM and POS regional transfers benefit funds electronically on the same networks, and others interested in addressing the day it draws the federal funds, the state can avoid many issues raised by EBT. Staff members from interest payments. The regulations must be in the Treasury Department, the Federal Reserve place by October 1992. Board, the Food and Nutrition Service, the Fam- In the private sector, various groups are di- ily Support Administration, and other agencies rectly affected by the implementation of EBT. join in task force discussions to facilitate the For financial institutions and regional networks, exchange of ideas and information between the EBT can bring added transactions at ATMs not private and public sectors. The association also operating at full capacity and thus generate rev- recently hosted its first annual conference on enues from fees. In EBT programs that replace EBT. food stamp coupons with electronic delivery, Added support for EBT has come from the depository institutions will no longer have to be Federal Reserve's Consumer Advisory Council, involved in the redemption of coupons. There particularly members of its Committee on Deposwill also be reduced need for check-cashing itory and Delivery Systems. The council's thirty services and, thus, less risk of loss from fraud. members represent consumer and community- The American Bankers Association has spon- based organizations, financial institutions, colsored two annual conferences on EBT, drawing leges and universities, and state government. At attendees from state and federal agencies and the its meeting in June 1990, the council unanimously private sector. The Consumer Bankers Associa- adopted a resolution urging the Federal Reserve tion recently prepared an issues paper to famil- Board to take a leadership role in encouraging iarize its members with the implications of EBT the development of EBT. and to encourage their participation in its development. Food retailers that currently deal with paper EARLY EBT PROJECTS: TESTING food stamps may be able to improve efficiency THE SYSTEM through the use of electronic substitutes. The Food Marketing Institute, which represents Programs at the federal and state levels have about 1,600 food retailers and wholesalers (in- tested the practicality of EBT. Such programs in cluding almost every major supermarket chain), parts of New York, Pennsylvania, and Minnehas had a committee on electronic fund transfers sota have become fully operational and permasince the early 1980s to keep up to date on the nent after going through a demonstration or pilot use of debit cards in POS transactions at check- phase. For these programs, the focus now is on out lanes. The institute encourages the involve- expansion to other counties or even to the entire ment of grocer representatives while EBT state. In Maryland, New Mexico, Texas, and projects are being planned, so that their concerns other states, EBT projects are still in their forabout POS installations may be adequately ad- mative stages. dressed. The group has voiced strong support for In general, an EBT system functions much like the concept of EBT and for its implementation at a commercial system for electronic fund transthe most rapid practical pace. fers. An eligible recipient receives a plastic mag- Others in the private sector, too, are taking a netic-striped card and a personal identification direct role in the evolution of EBT. In 1990, the number (PIN). The card may also carry a photo- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

208 Federal Reserve Bulletin • April 1991 graph of the recipient and a signature panel. To an EBT system in the strictest sense; but it does access the benefits, a recipient goes to a terminal demonstrate a use of electronic technology to that may be dedicated to the system or may be facilitate the delivery of benefits. part of an existing ATM or POS network. The The New York City system uses attended recipient inserts the card into a device that reads terminals in approximately 425 locations, most in the magnetic stripe or, in the case of an attended check-cashing centers and some in bank terminal, presents the card to a clerk who sweeps branches. The card issued to participants conthe card through the stripe reader. The recipi- tains a photograph, a signature panel, and a ent's identity is usually verified by the PIN, and magnetic stripe; a clerk disburses the benefits the terminal communicates with an authorization after verifying the identity of the holder through center to ascertain that the recipient is eligible for the magnetic stripe and by comparing the person benefits, that the card has not been reported lost presenting the card to the photograph and the or stolen, and that benefits are available. In an signature on a voucher that the person signs to attended terminal system, the recipient may sign the signature on the card. a voucher printed by the terminal to permit a When the benefit is redeemed, the recipient clerk to compare signatures. If everything is in must take the entire amount due. The recipient's order, the recipient receives the benefits through benefits are debited immediately to prevent dua cash disbursement or, in the case of food stamp plicate issuance. Transactions for each day are benefits, by authorization for a food purchase. processed nightly through the automated clearing Programs may use either government accounts house, and funds are transferred to reimburse the or accounts in recipients' names. If government redemption centers. accounts are used, a settlement takes place after Participants have reacted favorably to the systhe close of each business day: The program tem. The New York City Human Resources agency authorizes a fund transfer from its ac- Administration reports reduced administrative count to a contractor financial institution, which and check-reconciliation costs, reduced inciin turn reimburses the terminal-operating institu- dence of lost or stolen benefits, and increased tions and retail grocers. If accounts in recipients' ability to prevent the issuance of benefits after a names are used, the program agency transfers case is closed (for example, when a recipient dies funds monthly, by way of the automated clearing or becomes ineligible). Agency savings amount house, to the contractor financial institution so to about $9 million annually. The recipients also that funds are there to cover withdrawals of favor the arrangement: They can obtain public benefits during the cycle. assistance benefits and food stamps at the same time and place, they have no check-cashing fees New York City: Automated Delivery to pay, and stolen checks are no longer a probof Cash and Coupons lem. For financial institutions that cash checks for noncustomers, the New York City delivery New York City was among the first areas to have system means that branches can avoid the conautomated delivery of government benefits. Its gestion caused by many people cashing governsystem for handling the disbursement of AFDC ment checks on the day of receipt and that the benefits and food stamps, known as the Elec- likelihood of accepting a fraudulent check is tronic Payment File Transfer System, began op- reduced. erations as a pilot in 1981. It received high marks from recipients in the pilot: Ninety-four percent Reading, Pennsylvania: Electronic preferred it to the check-based system. By 1986 Delivery of Food Stamp Benefits the system was in full-scale operation, and now it serves about 500,000 households. It is limited to In 1984 a demonstration project for the electronic disbursing public assistance in cash and food delivery of food stamp benefits began in Reading, stamp benefits in the form of paper coupons at Pennsylvania, under the auspices of the Food attended terminals. Because of its reliance on and Nutrition Service of the USDA. The system manual disbursement, some may not consider it used POS terminals in about 125 grocery stores, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Electronic Transfer of Government Benefits 209 with cards and PINs issued to participants to ATM and POS transactions, recipients need not replace the traditional paper coupons. Unlike the withdraw the entire authorized benefit in one New York City system, the Reading program transaction; the county has found that recipients enabled recipients to pay directly for food by typically average three to four transactions per debiting their benefit account at the checkout month. counter. No limitation was placed on the number Participation is mandatory for recipients, exof draws permitted per month for participants. cept for those who have bank accounts. The About 3,400 households were involved in the county expects to begin offering the recipients pilot. who have bank accounts the option of direct Participating financial institutions, recipients, deposit of benefits. and food retailers generally favored the elec- In a 1990 evaluation of the pilot, the county tronic system over the previous paper-based reported that 89 percent of participants preferred program. The evaluation report indicated that EBT, whereas 4 percent continued to prefer loss and theft of benefits were reduced and that checks. Advantages to recipients include earlier costs to banks and retailers of handling food access to benefits, convenient locations and coupons were eliminated, as were costs to the hours for obtaining benefits, and the flexibility of government of producing, storing, and shipping withdrawing benefits in one lump sum or in the coupons. several smaller amounts. Ramsey County found Administrative costs, however, were much that its costs for delivering benefits were lower higher in the electronic system than in the paper- than they had been under the check-based sysbased system (about $27 per case per month tem. compared with about $3 in the old system). The Except for allowing the use of their ATMs for higher cost resulted from the special installation gaining access to benefits, banks have had little of the POS terminals for the pilot and from an direct involvement in the program. Funds remain initially small caseload. Now operated by the in a government account until drawn, and the state, the Reading project in 1988 reported costs program agencies and their contractors are reof about $9 per case per month. sponsible for accounting, resolving problems, detecting fraud, and auditing. Ramsey County, Minnesota: AFDC Benefits Other EBT Projects Minnesota's Ramsey County, in which St. Paul is EBT projects are also under way in several other located, has an EBT system that began as a pilot states, including Maryland and New Mexico. project in 1987. The program is now in full-scale Benefits being disbursed in these projects include operation, with about 12,000 recipients. Benefits AFDC, other types of cash public assistance, disbursed include AFDC and other categories of food stamps, and child support payments. cash public assistance. In developing the system, Begun in 1989 under the auspices of the Family the county specified that the access card should Support Administration and USDA's Food and be designed so that it could eventually also Nutrition Service, the Maryland pilot makes mulaccommodate other programs such as food tiple benefits (AFDC, child support payments, stamp benefits, which the county expects to add and food stamp benefits) available. It uses existsometime in 1991, and medicaid. ing network ATMs and specially installed POS Recipients receive plastic cards with a mag- terminals. The project involves about 5,000 renetic stripe, photograph, and signature panel. cipients, who may obtain benefits in several The Ramsey County system uses ATMs that are draws over the month. About 170 food stores in part of three existing regional networks. The Baltimore are participating. Approval has just system also uses attended POS terminals. If been granted to expand the project statewide. clients cannot demonstrate at the end of the Another project, sponsored by the Food and training sessions that they can use an ATM, they Nutrition Service, began in September 1990 in are restricted to using POS terminals. For both Albuquerque, New Mexico. Initially it involved Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

210 Federal Reserve Bulletin • April 1991 only food stamp benefits with AFDC to be added Carried out in Baltimore, the SSI pilot ran for later. Of about 16,000 households receiving food twelve months, ending in October 1990. It difstamps, 7,000 had voluntarily converted to EBT fered from most other EBT projects to date in by January 1991; the program became mandatory that participation was voluntary. About 250 rein February. The program will also serve almost cipients took part in the program. Benefits could 6,000 households receiving AFDC payments be taken in multiple withdrawals rather than all at (there is some overlap among recipients in the once. As time passed and they gained confidence two programs). The Albuquerque program is in the system, participants became more likely to noteworthy in that, beyond promoting EBT, it is take advantage of this feature. also serving to advance POS in the commercial The Treasury just launched its second pilot, in environment: The great majority of participating Houston. As in Baltimore, participation is volunretail grocers have chosen to install terminals tary. Benefit funds are held in regular checking that will serve the general population of debit accounts, and recipients may make multiple card customers and will even accept credit cards. withdrawals. The Houston project covers social The government agencies have subsidized the security benefits as well as SSI. Almost 400 costs attributed to the EBT function; the retailers recipients participate in the program, with a have paid the difference. control group of about 500. The control group Other possible locations for pilots include Iowa was chosen from among persons who initially (where food stamp benefits may be added to an expressed an interest in participating but who existing system for cash benefits), New Jersey, ultimately did not sign up. and South Carolina. The Food and Nutrition The primary contractor operating the pilot is a Service will also test the off-line delivery of food regional terminal network. Recipients can obtain stamp benefits to about 10,000 recipients in Day- benefits through any ATM or POS terminal in the ton, Ohio. The system will use information in a network; the network itself issues the cards, and, magnetic chip embedded in the access cards therefore, no network interchange fees will be (sometimes called smart cards) rather than in a charged. computer database at a financial institution or The evaluation of the Houston project will data-processing contractor. Thus, the terminal at differ from evaluations in other pilots in that it which benefits are obtained need not communi- will focus also on EBT's effects on crime. The cate with any outside facility at the time of a National Institute of Justice, a cosponsor of the transaction. With such a system, telecommuni- project with the Treasury Department and the cation costs decrease (although the cards are Social Security Administration, has said that the more expensive than the ordinary magnetic- test will consider robberies, thefts, physical asstriped version) and efficiency increases, as time saults, and white collar crimes. waiting at the checkout counter for authorization may be reduced. As in other pilots, other types of benefits may be added later. ISSUES RAISED BY EBT Treasury Initiatives The projects conducted to date suggest that EBT systems can effectively meet the needs of benefits Besides coordinating interagency efforts, the recipients, as evidenced by the positive endorse- Treasury Department has pursued several EBT ments the systems have received in New York initiatives of its own. The Treasury's first pilot City, Ramsey County, and elsewhere. These detested the electronic payment of supplemental livery systems may offer other participants in security income (SSI) benefits through magnetic- EBT, as well as the recipients, clear advantages striped cards at ATMs and POS terminals. SSI over the paper-based systems they replace. But benefits, which are payable to aged, blind, and for EBT programs to become a reality on any disabled persons in financial need, total approx- major scale, all of the parties with an interest in imately $15 billion annually and go to 4.6 million EBT—including recipients, government program recipients throughout the United States. agencies, banks and other financial institutions, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Electronic Transfer of Government Benefits 211 retailers, regional networks, service providers has in the food stamp pilots thus far—startup such as data-processing firms, and equipment costs will be correspondingly higher. vendors—must undertake cooperative efforts in For the retail food industry the placement of EBT's evolution and implementation. terminals has been an important issue: Should Addressing the issues in a way that will further terminals be placed in every checkout lane in a the development of EBT calls for a common grocery store or only in selected lanes? The understanding of the perspectives of other par- industry's position has been that terminals ticipants from the private and public sectors. should be installed in all lanes to provide better High on the list of the issues are cost factors, service and to avoid stigmatizing EBT recipients. which will determine the willingness of the vari- This issue will be resolved by the new regulations ous parties to engage in the system, and factors that USD A is to adopt by April 1992. In a related to the recipients' needs and concerns. To mandatory EBT program, participating food the extent that piggybacking on existing systems stores are to have POS terminals at all checkout for electronic fund transfers may help make EBT lanes, if the store's food stamp sales volume is 15 economically feasible, the public and private percent or more of the total sales volume. For sectors may have to shape compromises that stores with less food stamp business, POS termitake into account the interests of all the parties. nals must be at a sufficient number of registers to provide "service that is comparable to service provided individuals who are not members of Cost, Operational, and Technical Issues food stamp households," as determined in the regulations. The economics of EBT are fundamental to its Even where substantial numbers of ATM and viability. Unless the overall costs of an EBT POS terminals exist, piggybacking on existing system are no higher than the costs of the paper- EFT networks may not necessarily be easy or based system it would replace, a government cost-effective. In the EBT pilots to date, the agency may have difficulty justifying and funding federal agencies' specifications have included the switch from paper to electronics despite the on-line authorization, the use of PINs by recipifavorable features for benefit recipients. ents, differentiation between food stamp and One factor that may influence the cost of EBT cash transactions, and the printing of account systems is the extent to which providers can use balances on receipts. Meeting some of these existing terminals and networks, instead of in- operational requirements could pose problems stalling equipment specially designed for EBT for the networks if existing equipment is incapapurposes. Some EBT projects have used private- ble of fulfilling the requirements. The requiresector regional ATM networks already in place; ment that account balances appear on the transbecause such networks exist in virtually all areas action receipts that the terminals provide is one of the country, this approach appears feasible as such example. far as ATMs are concerned. Because ATMs Another issue concerns the way costs will be generally do not dispense currency in dollar bills allocated among participants. So far, the proor coins, some other means are required for gram agencies have borne the costs of EBT recipients to obtain their entire benefit payments. projects, compensating financial institutions, re- Generally the means have been POS terminals, tailers, and others for the costs occasioned by which enable the retail clerk to dispense funds EBT. To the extent that private-sector entities from the cash register. derive economic benefits from participating in For the disbursement of food stamp benefits, EBT systems, government agencies may suggest POS terminals at grocery stores are a necessity. that some sharing of costs is appropriate. And unlike ATMs, POS terminals are not yet in Recipients, too, may benefit economically place in many areas. Where few or no POS from not having to pay fees to cash checks or terminals exist, they must be installed for an maintain deposit accounts for cash benefits. An- EBT project to function. If the program agency other advantage to recipients is the ability to pays the entire cost of installing terminals—as it withdraw funds in several transactions: In the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

212 Federal Reserve Bulletin • April 1991 check-based system, they had no choice but to financial institutions will cover a wide range of take the entire amount in a lump sum. Because a subjects: standards for the performance and program agency that pays fees on a per-transac- availability of systems and authorization procetion basis may face higher costs, however, the dures; the authorization databases to support, agency may seek to limit the number of free through one card, the multiple programs for transactions allowed. An alternative is to provide which a recipient is eligible; the card technology recipients with a certain number of free transac- to support EBT, including the security standards tions per month and to give them the option of for PIN encryption; and technical specifications making additional transactions for a fee. for POS terminals. If startup and other fixed costs can be spread over a large transaction base, the cost per trans- Recipient Concerns action can be minimized. Ideally, for this purpose, the program agency would want to have Factors that affect costs, and that therefore inthe entire recipient population in the EBT pro- terest program agencies, financial institutions, gram, to avoid having to operate dual paper- food retailers, and other organizations involved based and electronic systems. in EBT programs, also affect recipients. One The majority of EBT programs to date have example is the placement of terminals. For EBT made participation mandatory; the payment of to meet recipients' needs, the terminals for gainbenefits by check has not been an option in these ing access to benefits must be in the areas in programs. Pilots for the direct payment of federal which the recipients live. These areas are likely benefits, such as the SSI pilot in Baltimore, have to be low-income neighborhoods, which typically allowed voluntary participation. The Social Se- have fewer ATMs and POS terminals than other curity Act provides that recipients of SSI benefits communities. Access may be considered ademay not be required to take part in "experimen- quate, however, if terminals are available in tal, pilot, or demonstration projects" involving business districts or in other areas that are adja- SSI benefits; if they do agree to participate, they cent to neighborhoods in which recipients live. may still revoke the agreement at any time. Even with few ATMs in an area where programs Other issues involve technical and operating are being established, access may be sufficient if standards, including equipment reliability, the POS terminals can be installed in grocery stores. availability of backup procedures in case of elec- In rural areas, ATMs and POS terminals may tronic failure, and security measures against un- be sparsely situated, so rural recipients may have authorized access. For example, what are the difficulty in getting their benefits. However, bank liabilities if the system breaks down or some branches, check-cashing centers, and grocery other problem occurs? If multiple programs use a stores may also be distantly spaced in rural common EBT system, how and to what extent areas, so EBT may not impose any greater can these programs be made consistent? Will the disadvantage than the present system. system operate on line or off line? Will PINs or The issue of accessibility also pertains to spesome other identification technology be used? cial groups such as handicapped, elderly, non- These are among the issues being studied, English-speaking, or illiterate recipients. Such from the industry side through the Electronic people may have difficulty reaching or using Funds Transfer Association's EBT task force terminals, especially ATMs. Some of these proband other groups and from the government side lems may be remedied by extra training or multhrough the coordinated efforts of the Treasury tilingual terminals or through allowing authorized Department, the Office of Management and Bud- representatives of recipients to pick up benefits. get, and the program agencies responsible for The Americans with Disabilities Act of 1990 oversight of benefits delivery. The EFTA's task (Pub. L. 101-336) is aimed at preventing discrimforce, for example, set up a subgroup to address ination against physically or mentally disabled issues associated with using existing EFT net- persons. It does not target EBT programs, but works. Recommendations to federal and state because benefit programs may have a relatively agencies and to EFT networks, processors, and high proportion of disabled persons as recipients, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Electronic Transfer of Government Benefits 213 issues involving the interpretation and applica- may have considerably more, rather than less, tion of the act may arise most often in EBT privacy in their financial dealings than those settings. For example, can the act be interpreted using paper-based systems. Withdrawing funds as requiring key pads at ATMs and POS termi- by ATM, for example, may allow greater prinals to be coded in Braille so that blind persons vacy than cashing a public assistance check at a may have access? Might it require the installation bank or a retail store, especially in a small-town of ramps for terminals to be accessible to persons environment. Paying for food purchases at a in wheelchairs? The Department of Justice is- POS terminal with an EBT card may afford sued proposed regulations in February 1991 to greater privacy than counting out food stamp implement the act; final rules will become effec- coupons. tive January 1992. A related issue is the personal safety of recipients. If the likelihood of being attacked at or REGULATION E near an ATM is perceived to be greater than it is for the traditional alternative such as a check- Among bankers particularly, a key question to cashing center, the accessibility of benefits is any discussion of EBT systems is whether Regsomewhat compromised. In the check-based sys- ulation E applies. This regulation, which impletem, however, recipients without deposit ac- ments the Electronic Fund Transfer (EFT) Act counts also face the risk of being attacked after (15 U.S.C. 1693 et seq.), creates the legal framecashing their checks. While the safety of a check- work of rights and responsibilities for providers cashing center may be increased by the presence of EFT services to consumers. Among them are of other people such as clerical personnel, it may consumer rights to the disclosure of terms and be decreased by the larger amount of cash car- conditions, to receipts and periodic statements, ried by a recipient after cashing a benefit check. to error resolution within a certain period of Consumer groups have expressed concern time, and to limits on the consumer's liability for about making EBT the only available delivery unauthorized transfers. system. Although requiring recipients to obtain Regulation E applies to transfers that debit or benefits through EBT tends to decrease costs, a credit an "account." To date, the Federal Remandatory system can be criticized for not af- serve Board has not covered EBT systems in fording the same freedom of choice to recipients Regulation E so as not to impede the developof government benefits that is available to con- ment of the various state and federal pilot prosumers generally. An employee of an organiza- grams. This result has been achieved through a tion that offers direct deposit of salary, for ex- narrow interpretation of the regulation, focusing ample, often can choose instead to receive a on the Board's legal definition of what constipaycheck. Even after the funds are in the bank, tutes an account. In the official staff commentary the person may choose to withdraw them by to Regulation E, the Board has stated that no cashing a check or using an ATM. "consumer asset account" exists where a gov- Another potential concern for recipients is ernment agency, rather than the consumer, has privacy. Issues about the privacy of electronic set up the account; consequently, any electronic data, including financial data, have been debated transfer of funds from such an account—to a for some time; the National Commission on consumer or on the consumer's behalf—is not Electronic Fund Transfers and the Privacy Pro- covered by the regulation. tection Study Commission, among others, have studied and reported on these questions. Elec- Application to EBT tronic data systems can facilitate the collection, storage, manipulation, and retrieval of large Whether EBT programs involve the type of acamounts of information about individuals, and count relationship—with the program agency or gaining access to data about individuals whose a financial institution—that should be covered by records are in the system can be easy and fast. the EFT act is currently under review. Several In practice, recipients using EBT systems factors argue for coverage: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

214 Federal Reserve Bulletin • April 1991 • The Congress intended the EFT act to have corded consumers by regulations outweighs the broad scope. The application of the law is not costs of compliance imposed on consumers and limited to banks and other traditional financial financial institutions. institutions. The statute directs the Federal Re- Among the questions to be dealt with are those serve Board, in the event that EFT services are revolving around who must comply and how offered other than by financial institutions, to exactly the rules would be applied. Even a preensure that the "disclosures, protections, re- liminary analysis of the issues makes clear that, sponsibilities, and remedies" created by the stat- while some rules would be easy to implement in ute are made applicable. Indeed, Regulation E the EBT environment, others raise significant has long reached nonbanking entities—whether policy questions and difficult operational probor not they hold consumers' accounts—when lems. they engage in activities governed by the statute. The regulation prohibits magazine telemarketers, Issuance of Cards and PINs. Regulation E sets for instance, from initiating electronic debits to a rules for the issuance of debit cards and PINs to checking account based on a telephone call to the consumers. In general, a card and PIN for makconsumer. To so debit an account, the telemar- ing electronic fund transfers may be issued only keter must first obtain a written authorization upon request. In an EBT program, consumers signed by the consumer, just like any other applying to receive government benefits norprovider of an electronic fund transfer service. mally request cards and PINs willingly because • The regulation already covers the direct de- these devices are required to obtain the benefits. posit of government benefits into bank accounts—social security or SSI payments, for Disclosures. Regulation E requires the discloinstance. Should the treatment be different for sure of applicable terms and conditions of EFT those who receive these same benefits through an service. The purpose of this disclosure is to EBT system? explain the features of the service and to help • The law does not exempt governmental bod- consumers understand their rights and responsiies. If a government agency chooses to disburse bilities. Giving these disclosures probably poses payroll electronically through an ATM system, little problem in EBT systems. Indeed, governthe transactions are covered. Should the result ment agencies may go far beyond written disclodiffer if the funds being disbursed are entitlement sures in introducing recipients to the EBT promonies rather than salary, or because the funds gram and the technology. In the EBT projects are disbursed through a state agency and not the thus far, participants generally have received federal government? extensive hands-on training on electronic termi- • EBT systems often piggyback on the ATM nals before receiving their cards and PINs. The and POS terminals and networks used for trans- disclosures could easily be provided at the same actions that Regulation E covers. Since Regula- time. tion E covers those transactions, coverage of the EBT transfers appears logical. Documentation. Regulation E requires the giving of receipts, when transactions are made at an Consequences of Coverage ATM or POS terminal, and a monthly statement. The receipt documents the transaction through The statute directs the Federal Reserve Board, in such information as the date, the type and the prescribing rules under the EFT act, to consider amount of transfer, and the terminal location. the costs and benefits to all parties—financial The statement assembles data about all the transinstitutions, consumers, and other users of EFT. actions that took place during the cycle; it pro- The Board must consider also the rules' effect on vides a way for spotting any errors or unauthothe availability of these services to different rized transactions in account activity. groups of consumers, particularly low-income Because existing ATM and POS systems alconsumers. To the extent practicable, the Board ready provide receipts that comply with Regulais also to demonstrate that the protection ac- tion E, this requirement would probably impose Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Electronic Transfer of Government Benefits 215 little additional burden for EBT programs that institutions are allowed by the regulation to propiggyback on the commercial systems. Providing vide a telephone number that the consumer can periodic statements, however, could be burden- call to obtain confirmation. EBT systems could some if statements were sent only because of the use the same procedure. Indeed, the pilot proregulation, given the costs for paper, internal grams have often used audio-response units that processing, printing, and postage. recipients can call at any time. If the transactions performed through an EBT system are relatively infrequent and are uniform Liability for Loss or Theft. Application of the in type, the recipients' need for statements may rules on liability to EBT systems probably not be great. In the current check-based systems, represents the greatest dilemma in regard to recipients receive no statements from the pro- coverage. Under the EFT act and Regulation E, gram agencies except for notice of changes in the a consumer is liable for at most $50 of unauthoamount of the benefits. A periodic statement may rized transfers if the consumer reports a lost or prove less essential also if the terminal receipt stolen card within two business days of learning contains information about balances or if the of the loss or theft. In other cases, the consumrecipient can request the information by other er's liability can be as high as $500 or even means, such as from a terminal or by telephone. unlimited. From the perspective of a low-in- The pilot EBT programs that have been con- come recipient, even $50 may seem too high. ducted have generally required that the receipts Moreover, under the check-based system, if a show an account balance. This balance informa- check is lost or stolen and the endorsement tion is particularly useful if recipients can make forged, an agency will generally issue a replacemultiple withdrawals over the month. Providing ment check if the recipient meets certain coninformation about balances may not be a problem ditions, such as filing a police report and making in programs that use facilities dedicated to EBT a written claim. alone. Doing so may be less feasible in systems While these rules create some protection for that piggyback on the existing ATM and POS consumers, the question arises of who ultimately network systems, which may not have the capac- bears the loss for amounts greater than the ity to perform this function. consumer's liability. In the typical EFT case, For recipients who receive payments from these losses fall on whoever issued the card that several different government programs, having to gave access to the consumer's account. provide balances for each program could be a In the EBT pilots so far, the unauthorized problem. An alternative, which might provide withdrawal of benefits appears not to have been adequate documentation for the recipient, is an a problem. State agencies currently apply rules initial disclosure of the amount and the scheduled for negligent behavior that impose the risk of loss date of each benefit. Another alternative—to use on the client, and these may tend to discourage separate cards for the different programs—goes claims. Benefit recipients are warned against against the objective of using a single EBT sys- writing the PIN on the card and against letting tem to gain access to benefits from different others know their PIN. Agencies warn recipients agencies. Indeed, joint programs may be neces- that the card is like cash and that they do not sary to make the offering of EBT systems eco- replace lost cash. nomically feasible. Under Regulation E, the result would be different. The legislative record to the act makes Notice of Deposits Received. Without the tan- clear that the Congress intended liability to be gible evidence that a paper check gives them, assessed based strictly on how promptly the benefit recipients in EBT systems may be uncer- consumer reports the loss or theft of a card. tain about whether benefits are available to them. Writing a PIN on the ATM card or keeping it For EFT transactions generally, Regulation E with the card does not increase the cardholder's requires informing consumers that a scheduled liability. To minimize the risk to everyone intransfer of funds has been credited to their ac- volved, recipients could be allowed to choose count. Instead of sending a notice, financial their own PIN. Thus, they would have no need to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

216 Federal Reserve Bulletin • April 1991 write down a number they might have difficulty Even if a particular institution is designated as memorizing. The ultimate resolution of this issue the holder of the accounts for an EBT program, could strongly influence an agency's decision on the situation may be different from that which the whether to proceed with the adoption of an EBT statutory provision was intended to remedy— program. that a consumer who banks with a certain institution not be required to open an account at Error Resolution. Regulation E requires inves- another institution to accommodate an employer tigations of errors to be completed within fixed or a government agency. The provision may also periods of time. In general, once the consumer have been intended to enable the consumer to alleges an error, the institution has ten business shop for the most economical and convenient days to resolve it. If more time is needed, the EFT services, which again may not coincide with institution may take up to forty-five calendar the arrangements made by the employer or days, in total, but it must provisionally credit the agency. Neither of these concerns may be releconsumer's account within ten business days for vant to an EBT system that is offered to those the amount of the alleged error while its investi- without an account. gation continues. It is not clear whether these rules would create Next Steps for Resolving Issues problems for recipients, program agencies, and financial institutions. If benefits are not posted to These are some of the regulatory issues that are an account or are posted in the wrong amount, being considered as the Federal Reserve Board the institution should be able to resolve the explores the possible coverage of EBT systems matter quickly. The institution would simply by Regulation E. One approach that could be check whether in fact the correct amount was taken involves establishing special rules for EBT made available. If the question concerns the programs within the existing framework of Regamount that the recipient is entitled to receive, ulation E. Such rules could remove legal uncerthe matter can be worked out between the recip- tainty about the status of EBT systems and ient and the agency caseworker as is done with recipients' rights while allowing continued innobenefits transferred by check. vation in the electronic delivery of government Difficulties may arise if an error cannot be benefits. resolved within ten business days. Under Regu- To ensure that adequate attention is given to lation E the recipient's account has to be provi- the potential impact of Regulation E on EBT sionally credited for the amount in question. The systems, the Board is consulting with federal and problem comes if a determination is later made state agencies, financial institutions and other that no error has occurred. In such a case, the private-sector participants in EBT systems, institution is entitled to reclaim the amount pre- members of the Federal Reserve's Consumer viously credited. Under the laws that generally Advisory Council, and consumer advocacy govern entitlement programs, however, an groups. Any regulatory proposal that may result agency may not be allowed to collect the full from this study will be published for comment amount of an overpayment from the installment and provide members of the public the opportunext due. The percentage of the total benefit that nity to give their views. can be recovered month to month is limited. Mandatory Use of EFT. The EFT act provides CONCLUSION that a consumer may not be required to establish an account "with a particular financial institu- EBT systems offer federal and state government tion" for receiving electronic fund transfers as a agencies the strong potential to enhance the condition of employment or of receipt of a gov- delivery of benefits to recipients, particularly ernment benefit. The act does not prohibit pro- those who do not have bank accounts. These gram agencies from making EBT the exclusive alternatives to paper-based systems also may means of disbursing payments. enable agencies to restructure their operations in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Electronic Transfer of Government Benefits 217 ways that can reduce their costs. In carrying out tem for the Food Stamp Program. Report for pilot projects, sponsoring agencies have tested the U.S. Department of Agriculture, Food and different approaches and have worked with a Nutrition Service. Cambridge, Mass.: Abt Asvariety of participants from the private sector. sociates, Inc., 1990. The experiences gained from these early efforts The Impacts of the will be invaluable to the achievement of EBT State-Operated Electronic Benefit Transfer systems that meet the needs of all parties. System in Reading, Pennsylvania. Report for Many policy and operational issues have been the U.S. Department of Agriculture, Food and identified in the test projects. They must be Nutrition Service. Cambridge, Mass.: Abt Asaddressed, by the agencies and others involved sociates, Inc., 1990. in the process, before EBT can become a nation- National Commission on Electronic Fund Transwide reality. Special attention will have to be fers. EFT in the United States. Washington: given to whether or how EBT service can piggy- NCEFT, 1977. back on existing ATM and POS terminal net- Ramsey County Community Human Services works, in areas where extensive terminal net- Department, Office of Research and Evaluaworks are already in place. Groups in the public tion. Ramsey County Electronic Benefit Sysand private sectors are working together to find tem: Final Evaluation Report. St. Paul, Minn.: the most efficient and cost-effective means of RCCHSD, 1988. offering EBT services and to ensure that devel- Scott, Charlotte H. "Low-Income Banking oping systems meet the needs of recipients and Needs and Services," Journal of Retail Bankother parties. Such cooperation at the early ing, vol. 10 (Fall 1988), pp. 32-40. stages of development is important to help University of Michigan, Survey Research Cenachieve, to the extent possible, compatibility ter. Survey of Consumer Attitudes. Ann Aramong procedures and standards. bor, Michigan: UM, June 1986. It is encouraging to note that, in virtually all U.S. Department of Labor, Office of Inspector EBT projects to date, an overwhelming majority General, President's Council on Integrity and of recipients expressed a preference for EBT Efficiency. Applications of Computer Card over the traditional paper-based system. Indeed, Technology. Washington: Government Printthe potential advantages of EBT to all parties ing Office, 1989. increase the likelihood that EBT can in time U.S. Department of the Treasury, Financial become an accepted method of delivery for a Management Service. From Paper to Plastic: substantial portion of the nation's government The Electronic Benefit Transfer Revolution. benefit payments. Washington: Department of the Treasury, 1990. U.S. General Accounting Office. Government REFERENCES Check-Cashing Issues. Washington: GAO, 1988. City of New York. Electronic Payment File Transfer (EPFT): Pilot System Evaluation. U.S. Office of Technology Assessment. Elec- New York: CNY, 1982. tronic Delivery of Public Assistance Benefits: Durkin, Thomas A., and Gregory E. Elliehausen. Technology Options and Policy Issues. Wash- 1977 Consumer Credit Survey. Washington: ington: Government Printing Office, 1988. Board of Governors of the Federal Reserve Selected Electronic System, 1978. Funds Transfer Issues: Privacy, Security, and Kirlin, John A., and others. The Feasibility of a Equity. Washington: Government Printing Of- Nationwide Electronic Benefit Transfer Sys- fice, 1982. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

218 Payment of Household Debts This article was prepared by Glenn B. Canner the individual characteristics of troubled debtors and Charles A. Luckett of the Board's Division that can shed light on the extent and severity of of Research and Statistics, with assistance from repayment problems. To improve understanding Wayne C. Cook and Nellie D. Middle ton. of the financial condition of households, the second part of this article examines data on late The indebtedness of U.S. households grew sub- payments by individual borrowers obtained from stantially in the decade that ended last year. The surveys of households conducted for the Federal sum of home mortgages and consumer debt out- Reserve by the Survey Research Center at the standing rose from $1.3 trillion at the end of 1980 University of Michigan. to just under $3.4 trillion at year-end 1990. This increase averaged out to a rate of 10 percent per year, which was one-third again as large as the average growth in after-tax income over the same REVIEW OF AGGREGATE STATISTICS period. The more rapid rise of debt than of income The financial health of the household sector is during the 1980s has raised concerns about the often gauged in rough fashion by comparing the ability of individuals to meet their debt obliga- total debts of the sector to its aggregate income tions comfortably. The recent slowdown in eco- or asset holdings. In addition, data on the pronomic activity has intensified those concerns. portion of loans that have payments past due Debt repayment problems can impair the profit- provide more direct measures of repayment ability of lending institutions by generating problems, while personal bankruptcy statistics higher loan-loss provisions and collection costs. indicate the frequency of the most severe prob- Historically, few institutions have been seriously lems—those in which debtors find the situation endangered by defaults on their portfolios of so extreme as to seek resolution from the courts. consumer or home mortgage loans, but lower profits in those areas could aggravate other problems. In a broader sense, higher delinquency and Debt-Burden Measures default rates could provoke a tightening of credit standards, curtailing the supply of credit and The two major categories of household sector thereby damping consumption and housing activ- debt are home mortgage debt, which amounted ity. On the demand side, higher debt burdens to about $2.6 trillion at the end of 1990, and could act as a drag on consumption because so-called consumer debt, which totaled about scheduled debt payments represent a competing $800 billion at year-end. Consumer debt has two claim on current income. subcategories: installment (repayable in two or Various statistics on debt growth, personal more payments) and noninstallment debt, with bankruptcies, and loan delinquency rates provide the installment component accounting for 90 some aggregate information on the extent to percent of the total. which households may be experiencing debt pay- Loans are categorized as mortgages or as ment problems. These statistics, reviewed in the consumer debt more by their collateral than by first part of this article, provide useful insights the purpose of the loan. The mortgage debt of but have several shortcomings as well. Also, individuals consists of all borrowing secured by a they contain no information about the concentra- lien on a home, including various types of "home tion of debt problems among borrowers or about equity loans" that are often used for purposes Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

219 1. Debt of the household sector relative to income, Home mortgage debt, as noted, accounts for 1980-90 the largest part of the broad debt measure, and interpretation of a mortgage debt-to-income ratio Debt as a percentage of disposable personal income is particularly murky. For instance, aside from YYYeeeaaarrr TToottaall ddeebbtt HHoommee Consumer debt those who own their home free and clear, virtu- ((mmoorrttggaaggee pplluuss mmoorrttggaaggee ccoonnssuummeerr)) ddeebbtt Total Installment ally every household must make a regular outlay 1980 .. 65.4 47.3 18.2 15.6 associated with their housing—either a mortgage 1981 .. 63.6 46.6 17.0 14.5 payment or a rent assessment. The analytical 1982 .. 63.0 46.3 16.7 14.2 1983 .. 62.5 45.7 16.8 14.3 usefulness of a debt-burden measure, including 1984 .. 64.6 46.5 18.1 15.6 as it does one form of housing outlay (a mort- 1985 .. 68.5 48.6 19.9 17.3 gage) but not the other (rent obligation), seems at 1986 .. 73.1 52.2 20.9 18.4 1987 .. 77.2 56.3 20.8 18.6 least questionable. An increase in the homeown- 1988 .. 78.9 58.3 20.6 18.6 1989 .. 81.3 60.8 20.5 18.7 ership rate would boost the level of debt and thus 1990 .. 83.5" 63.1" 20.4 18.5 the calculated debt burden (while reducing the p Preliminary. amount of rent). Because of this offsetting but SOURCE. Federal Reserve and U.S. Department of Commerce. unmeasured decline in rent burden, interpreting a other than housing expenditure.1 Consumer debt rise in debt burden attributable to an increase in is often unsecured, like credit card debt and homeownership rates in the same manner as a personal cash lending, or it may be collateralized rise in debt burden from other causes seems by the goods it is used to finance, such as motor inappropriate. In addition, home mortgages carry vehicles or household durables. While consumer such lengthy maturities that only a small portion credit is used predominately to purchase cur- of mortgage debt comes due in a given year. The rently produced goods and services, no doubt it significance of including the entirety of mortgage also finances some nonconsumption activities as debt outstanding in a measure of burden thus well, like financial investments. seems questionable too, especially if one's analytical interest is the constraint imposed by debt Ratios of household debts relative to income obligations on near-term consumption. flows or asset holdings provide some indication of the burden that debts place on the resources For such reasons, the debt-to-income ratio available for repaying them. Interpretation of often excludes mortgage debt. The ratio fresuch ratios is beset by many complexities, how- quently leaves out noninstallment debt too, in ever. Perhaps the most frequently cited debt part because much of it is very short term in burden measure is the debt-to-income ratio; the nature, such as charge accounts on which full first problem encountered in its use is deciding payment is required by the due date or "bridge which types of debt to include in it. When the loans" used to facilitate real estate transactions. broadest measure of debt is used—mortgage plus Noninstallment debt is a small component, howtotal consumer debt—the debt-to-income ratio ever, and its inclusion or exclusion makes little (with disposable personal income as the denom- practical difference. inator) now exceeds 80 percent (table 1). With In any case, the most commonly used debt-tomortgage and consumer debt both expanding income measure has only consumer installment more rapidly than income during most of the credit in its numerator. The surge of installment 1980s, this ratio rose more than 15 percentage borrowing in the mid-1980s raised this measure points between 1980 and 1990. On its face, this of debt burden from about 14 percent at the rise seems to indicate a substantial increase in outset of the expansion to a high of 19 percent the burden of debt, but that conclusion is not late in 1989 (chart 1). This increase is often cited necessarily warranted. as evidence that consumers on the whole have become overextended, but any such conclusion must be tempered by several caveats. First, as 1. For an analysis of the home equity loan market and how with mortgage debt, only a part of the outstandsuch loans are used, see Glenn B. Canner, Thomas A. ing stock of installment debt is payable in the Durkin, and Charles A. Luckett, "Home Equity Lending," near term, making it a less-than-perfect indicator Federal Reserve Bulletin, vol. 75 (May 1989), pp. 333-44. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

220 Federal Reserve Bulletin • April 1991 1. Consumer installment debt burden torical comparisons for any measure restricted to Percent installment debt. The recent popularity of home j | 2Q equity lines of credit exemplifies such a substitution, and this substitution may have curtailed growth of installment debt. So far, the discussion of debt-to-income measures has focused on outstanding debt rather than on debt payments. For many analytical purposes, a debtdisposable personal income service measure reflecting scheduled (or required minimum) payments of principal and interest would I I I I I II I I 1 I 1 I 11 I 1 1 I I 11 I 10 be a more relevant concept. Unfortunately, no com- 1970 1975 1980 1985 1990 prehensive data series of repayment flows currently In this and the following charts, the shaded areas represent periods of business recession as defined by the National Bureau of Economic exists. Estimates can be made using data on out- Research. standing debt, average maturities, and interest rates, but this approach requires making several arbitrary of current payment burden. This deficiency is not assumptions to fill data gaps and to supply certain as acute for installment debt as for mortgage debt behavioral parameters regarding the refinancing or because installment loan maturities are much prepayment of loans. Such estimates of repayments shorter than mortgage maturities, but it neverthehave limited analytical usefulness because of their less hinders interpretation. Moreover, a steady indeterminate accuracy. Information on scheduled lengthening of consumer loan maturities in recent years taints comparisons with earlier periods.2 payments of debt was collected in the household surveys of late payments, however, enabling some Second, the installment-based measure, in comdiscussion later in this article on the linkages bemon with other versions of the debt-to-income tween debt payment burden and late or missed ratio, contains no information about the distribupayments. tion of debt across households of differing income and asset profiles. The aggregate ratio thus gives Another caveat about debt-to-income ratios is no indication of whether a given buildup of debt is that income is not the only source of funds from owed by people with the income, assets, or em- which households can make debt payments. Recployment prospects to handle it comfortably, or ognizing this fact, some observers also look at by people of more limited resources who might be debt relative to the financial assets of housemore vulnerable to payment difficulties. In addi- holds. At the aggregate level, assets of housetion, shifts in the content of consumer credit over holds are about four times the size of their time—such as the growing use of credit cards for liabilities, a ratio that declined only marginally "convenience credit"—make longer-term com- during the 1980s. The net worth of the household parisons difficult, just as do changes in the matu- sector—the difference between assets and liabilrity structure of consumer debt.3 Finally, substi- ities—has grown from about $6 trillion in 1980 to tutions between consumer installment debt and $10 trillion at year-end 1990. Again, however, it other types of borrowing would also distort his- must be recognized that the aggregate statistics relating assets and debts may be masking important distributional features that might alter— 2. For example, between 1980 and 1990, the average either favorably or unfavorably—an assessment maturity on a new car loan at the major auto finance compa- of the household sector balance sheet.4 nies lengthened from forty-five to nearly fifty-five months. By reducing the rate of scheduled repayment, this lengthening of maturity has raised the stock of debt at any given time relative to the amount currently due and payable. 3. "Convenience credit" refers to funds that are borrowed 4. For a comprehensive examination of the distributional on a short-term basis to facilitate transactions and are repaid in changes in consumer debt among U.S. households in recent full within the billing cycle. Insofar as credit card accounts years, see Robert B. Avery, Gregory E. Elliehausen, and used for convenience frequently have positive balances on the Arthur B. Kennickell, "Changes in Consumer Installment last day of the month, reflecting charge activity occurring after Debt: Evidence From the 1983 and 1986 Surveys of Conthe end of the last billing cycle, the amounts of debt outstand- sumer Finances," Federal Reserve Bulletin, vol. 73 (October ing reported by lenders would include convenience credit. 1987), pp. 761-78. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Payment of Household Debts 221 Loan Delinquency Rates 2. Delinquency rates on loans to households Percent The proportion of loans with payments past due offers another slant on the extent to which individuals may be overburdened with debt. A few such aggregate data series are available based on surveys of lending institutions. However, these aggregate delinquency rates provide no sense of whether those consumers with late payment problems form a small group of people who are chronic late payers or a larger group of individ- Consumer loans past due thirty days or more —1.5 (all closed-end loans at banks) uals with transitory problems. The most widely referenced series are those produced by the I I I I I I I I I I I I 1 I American Bankers Association (for consumer loans at banks) and the Mortgage Bankers Association (for home mortgages at a cross-section of loan servicers). Delinquency rates on consumer loans, as measured by the American Bankers Association (ABA), exhibit a pronounced cyclical pattern. The ABA series (shown in the top panel of chart 2) is a weighted average of eight separate series 1970 1975 1980 1985 1990 for specific types of loans, such as direct and SOURCE. For consumer loans, American Bankers Association; for indirect auto loans, personal loans, and loans for home mortgages, Mortgage Bankers Association. mobile homes and other products. Historically, this series has begun to rise a few months in immediately.) Delinquencies peak and then begin advance of a recession period, has peaked some to decline at some point during a recession for a time during the recession, then has declined number of reasons: As a recession unfolds, many steadily into the subsequent economic recovery.5 borrowers have already begun taking steps to get Such a pattern of cyclically is consistent with their finances in order, and lenders have been expectations. As economic activity slows ap- applying stricter lending standards, resulting in proaching a recession, an increasing number of loan portfolios of improving average quality. workers are being laid off, or their working hours Moreover, as lenders write off uncollectable are being reduced. It would not be surprising if loans, removing them from portfolios, such loans the number of households falling behind on debt cease to affect the delinquency rate. After sevpayments rose too. Also, with new borrowing eral months, these various factors combine to typically curtailed at such times, the denomina- drive the delinquency rate back down. tor of the delinquency rate increases more Mortgage delinquencies have generally risen slowly, providing less of a downward pull on the during recessions as well, but their pattern aprate. (Early in an expansion period, when bor- pears tied much less directly to the business rowing is brisk, the calculated delinquency rate is cycle. For instance, the proportion of home held down by the large volume of loans coming mortgages past due (Mortgage Bankers Associaon stream, very few of which become delinquent tion series in the bottom panel of chart 2) continued to rise for almost four years after the end of the 1981-82 recession. Over the next four years, 5. Commercial banks (with deposits of at least $300 million) however, mortgage delinquencies declined have been reporting consumer loan delinquency rates on their steadily, in contrast to the moderate uptrend in Report of Condition since 1982. In recent quarters, an average delinquency rate based on these reports has risen some- consumer loans past due. The relatively quick what faster than the ABA delinquency rate. However, given response of consumer delinquencies in contrast the relatively recent origin of this series, little can be said of to the more delayed response of mortgage delinits behavior during different phases of the business cycle. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

222 Federal Reserve Bulletin • April 1991 quencies to shifts in economic activity partly bankruptcy referee, in contemplation of declarreflects the considerable differences in loan ma- ing bankruptcy.6 turities for the two types of debt—consumer Chapter 7 of the Bankruptcy Act provides for loans turn over much faster. If relaxed lending dissolving debts in full, and Chapter 13 provides standards during expansion periods contribute to for a partial repayment plan administered by the later increases in delinquency, then faster loan court—the so-called wage-earner plan. Under turnover would imply more rapid liquidation of either type of bankruptcy, secured creditors are risky loans. For example, the bulk of consumer still permitted to recover collateral from bankloans made in 1978 would have been substan- rupts, and any assets above certain exemption tially paid down by 1981, and almost all would levels are liquidated and distributed among the have been liquidated by 1983. In contrast, many creditors. Historically, the social stigma attached mortgage loans made in 1978 would still have to bankruptcy, the relatively limited asset extwenty years or more of scheduled life remaining emptions under the laws of many states, and the in 1983. Thus any lower-quality mortgage loans difficulty of obtaining credit after bankruptcy all that may have been extended in 1978 (under the served to make this remedy truly one of last presumably liberal credit standards of that year), resort for troubled debtors. Even so, vigorous were probably still on lenders' books in the collection efforts by creditors, particularly mid-1980s, while any lower-quality consumer through the garnishment of wages, often proloans would have been retired. pelled people into bankruptcy court. Home mortgage delinquencies may also reflect Limitations on garnishment and some other the amount of equity that borrowers have in their refinements of federal bankruptcy law in 1969 homes. When home prices have been rising curtailed the use of bankruptcy in the 1970s. sharply, homeowner equity is likely to be sub- However, further major revisions to the law ten stantial, and people may be less inclined to be years later—especially the overriding of state delinquent on their mortgages—at least for peri- asset exemptions with more liberal federal proods longer than thirty days. Because equity may visions—made bankruptcy a more attractive albe substantial even during recessions, depending ternative for dealing with debt payment probon the strength of previous home price trends, lems. In addition, though the development is aggregate delinquency rates on mortgages may hard to document, bankruptcy now seems to exhibit only minimal changes in response to carry less of a stigma than it once did, and some current economic activity. In the present eco- evidence suggests that credit may be easier to nomic downturn, which has been preceded by obtain after bankruptcy than it once was.7 unusual weakness in house prices in many areas, Historical trends in personal bankruptcies, the mortgage delinquency rate may exhibit shown adjusted for population growth in chart 3, greater sensitivity to income and employment reveal a prominent cyclical pattern. Most periods developments. Through the fourth quarter of last of sharply rising bankruptcy coincide with periyear, however, mortgage delinquencies remained near ten-year lows. 6. For a more complete discussion of the bankruptcy process and trends in the number of filings, see Charles A. Bankruptcy Statistics Luckett, "Personal Bankruptcies," Federal Reserve Bulletin, vol. 74 (September 1988), pp. 591-603. Individual borrowers who lack any reasonable 7. Research at the Credit Research Center of Purdue University indicates that a substantial proportion of persons prospect of being able to repay their debts acdeclaring bankruptcy in recent years has been able to obtain cording to agreement have, in bankruptcy, a credit fairly soon after completing the process. In some process for dissolving those debts, in full or in cases, a bankrupt may retain a credit card that had no outstanding balance at the time of the bankruptcy (and part, under court protection from collection eftherefore need not have been listed among the filer's debts), forts of creditors. Only a few types of obligations which is then still available for use after bankruptcy has been are ineligible for bankruptcy, such as federal tax declared. See Michael Staten, "The Availability of Credit to Consumers After Personal Bankruptcy," Working Paper obligations and child support payments, or any (Purdue University, Krannert Graduate School of Managedebt incurred by fraud or, in the judgement of the ment, Credit Research Center, 1991). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Payment of Household Debts 223 3. Nonbusiness bankruptcies 2. Debt status of U.S. households1 Number per 100,000 persons Percentage distribution Type of debt owed Percent2 None 15 Mortgage only 3 Consumer only 45 Both mortgage and consumer 38 Total 110000 MEMO Households with mortgage debt 41 Households with any debt 85 1. Here and in the following tables, data have been weighted to ensure the representativeness of the sample. ods of economic contraction, although the ex- 2. Details may not add to 100 percent because of rounding. SOURCE. Surveys of Consumer Attitudes, September and November 1990, tremely sharp rise in the expansion years of 1985 and January 1991, Survey Research Center, University of Michigan. and 1986 and the continued strong increases over Payment Behavior the next four years seem strikingly out of step with past patterns. On its face, this development The consumer surveys indicate that, overall, 85 suggests that the sizable expansion of debt in the percent of all households had an outstanding debt 1980s has substantially weakened the financial obligation or access to a line of credit under a condition of the household sector. However, credit card plan when interviewed (table 2).8 because of the legal changes noted above that Among all households, only 3 percent had home made bankruptcy a more attractive option to mortgages exclusively; 45 percent had only controubled debtors, the recent surge cannot be sumer credit, and 38 percent had both outstandtaken as an unqualified sign that the incidence of ing mortgage and consumer debt. severe debt payment problems is mounting rap- The vast majority of indebted households reidly. The rise in bankruptcies may be reflecting to ported no problems meeting their debt payment a significant degree a shift in the way households obligations on time during the twelve months choose to respond to debt problems rather than preceding the survey (table 3).9 Specifically, 86 an increase in debt problems per se. percent of the indebted households reported that they met or exceeded all of their scheduled debt SURVEYS OF CONSUMERS 8. This figure of the proportion of indebted households The Federal Reserve Board has for many years exceeds similar estimates from other surveys sponsored by sponsored surveys of consumers to gather informa- the Federal Reserve primarily because households having tion about their overall financial situation and about credit cards, but reporting no outstanding balance after their last payment, were categorized here as indebted households their use of specific financial services, including even if they had no other types of debt. This distinction was various types of debt instruments. As noted earlier, made because most of these households had in all likelihood while some information is available regarding trends used at least one of their credit cards during the preceding twelve months and consequently could have missed or been in consumer debt payments in the aggregate, less is late in a payment during this period. Surveys, such as the known about the payment behavior of individual 1983 Survey of Consumer Finances, have found that few households. In particular, relatively little is known households have credit cards and never use them. See Glenn B. Canner and Anthony W. Cyrnak, "Recent Developments about how widespread or how severe payment in Credit Card Holding and Use Patterns Among U.S. Famproblems may be among households. Also little ilies," Journal of Retail Banking, vol. 7 (Fall 1985), pp. documentation exists on what consumers do when 63-74. 9. Every indebted household participating in the survey they fall behind in their payments or what types of was asked the following question with respect to each of its actions creditors pursue in cases of late payment. outstanding loans. "During the past twelve months, were all Surveys sponsored by the Federal Reserve in late the (type of debt) payments made the way they were scheduled, did you get behind on any of the payments, or did you 1990 and early 1991 provide some information on make payments that were larger or more frequent than these questions. scheduled?" Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

224 Federal Reserve Bulletin • April 1991 3. Payment behavior of indebted households for the twelve-month period preceding the survey interview, by type of debt Percentage distribution Type of debt' Other Credit Vehicle Other mortgages cards loans installment debt2 Paid as scheduled or made larger or more frequent payments 92.6 89.9 84.8 Fell behind or paid late 6.0 9.1 13.2 Fell behind or paid late and made larger or more frequent payments 1.4 1.0 2.0 Total 100.0 100.0 100.0 100.0 MEMO Percentage of debt holders more than thirty days late 5.1 5.1 11.7 Percentage of debt holders sixty or more days late 1.5 .7 5.4 1. Details may not add to 100 percent because of rounding. * Less than 0.5 percent. 2. Other installment debt includes loans for educational purposes, medical SOURCE. Surveys of Consumer Attitudes, September and November 1990, expenses, vacations, and various types of household durables. January 1991, Survey Research Center, University of Michigan. payment obligations. As indicated by the survey, (table 3). These two categories, along with credit 42 percent of these households made payments cards, also had the highest incidence of consumthat were larger or more frequent than scheduled ers who reported falling more than thirty days on at least one of their outstanding obligations. behind in their payments. Of the households These households may have been attempting to reporting payment problems, relatively few with retire their debts ahead of schedule or, in some home mortgages or vehicle loans let these debts cases, the larger payments may have involved a get as much as sixty days in arrears (table 3). refinancing. Delinquency of this duration is more likely to Among the various types of debt owed by raise the possibility of foreclosure or repossesconsumers, "other mortgages," primarily home sion, actions most consumers would like to equity loans, had the best overall payment per- avoid. formance. This finding is consistent with the extremely low delinquency rates reported by commercial banks on their outstanding home Characteristics of Consumers equity lines of credit and, to a lesser degree, on with Payment Problems their other types of home equity loans. Despite the overall satisfactory payment per- Not all types of households are equally likely to formance of the majority of indebted house- report falling behind on their payment obligaholds, a significant minority, about 14 percent tions. Consumer survey data provide an opporof those surveyed, reported falling behind on at tunity to profile the household characteristics least one of their scheduled debt payments. A (such as income, marital status, and age) that small fraction of these late payers—roughly 12 may be associated with late payment problems. percent—reported both that they fell behind in The relationships observed, however, do not their payments and that, at some point during directly reflect the creditworthiness of persons the year, they made larger or more frequent with given characteristics because the debtor payments than scheduled. In some cases, con- segment of the population has already passed sumers may have done so to catch up on earlier through a credit-screening process designed to missed payments. weed out the riskiest applicants. To be precise, Households reported falling behind in their the data can show which factors are associated payments most frequently on vehicle loans and with missed payments, given the credit stanother types of non-credit-card installment debt dards prevailing in the marketplace, but not Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Payment of Household Debts 225 which factors, before the fact, are associated 4. Proportion of indebted households with payment with default risk.10 difficulties, by demographic characteristics and type of outstanding loan1 Strong correlations exist between payment Percent problems and housing tenure, marital status, and debt-service burdens (table 4).11 Differences in Demographic Any type Mortgage Consumer characteristic of debt debt debt payment behavior also show up with respect to household income and age, although the differ- Household income (quintiles) ences are greatest at the extremes of the house- 16 20 17 Second 19 15 16 hold groups. The combined results for debtors in Third 15 10 13 the lowest two income quintiles, for example, 14 8 12 Highest 9 6 7 show that they are about twice as likely to have Education of household been late or missed a scheduled payment as are head households in the highest income group. A sim- 11th grade or less 14 13 13 High school graduate ilar relationship holds with respect to the age of or some college 16 10 14 College graduate 13 9 11 the household head: Households headed by per- Age of household head sons under thirty-five years of age are nearly four (years) times as likely to report payment problems as are Less than 25 13 13 13 25-34 20 11 17 those headed by an individual at least fifty-five 35-44 18 11 15 45-54 16 12 12 years of age. As might be expected, debt-service 55 and over 5 2 5 burdens—measured by the ratios of scheduled Marital status monthly payments to monthly income—are pos- Married 14 9 12 Never married 13 6 12 itively related to late payment problems. House- Widowed 4 2 3 holds in the group with the highest ratios of debt Divorced, separated 27 15 23 | payment to income are more than four times as Housing tenure status 12 9 10 likely to be late or to miss payments as house- 20 n.a. 20 holds in the group with the lowest payment Payment-to-income burdens. ratio (thirds)' Lowest 6 5 5 While the relationships described above ap- Second 12 8 9 Highest 26 15 24 pear straightforward, their interpretation is not quite so clear. For example, although households MEMO All debtors 14 9 12 with younger heads tend to miss or be late on 1. Households categorized as having payment difficulties are those who their debt payments more often than their older reported having missed or been late in their debt payments in the preceding counterparts, this finding may reflect the fact that year. 2. Three groups of equal size were determined for each debt category younger persons also tend to have lower-paying separately. The figures shown are the proportion of each size group that fell jobs. Thus the extent to which age and income behind in their debt payments. n.a. Not applicable. differences independently affect payment behav- SOURCE. Surveys of Consumer Attitudes, September and November 1990, ior is left unsettled. For this reason, a multivari- and January 1991, Survey Research Center, University of Michigan. ate analytical framework was used to assess the likelihood that a household either repaid its debts payments.12 However, because the survey did as scheduled or fell behind or missed one or more not collect some relevant information, such as data on asset holdings, the analysis cannot be as complete as one might wish. The multivariate analysis suggests that pay- 10. Of course, lenders might also respond to higher-risk seekers of credit by modifying downpayment or collateral ment problems are most strongly related to requirements or by charging higher interest rates commensurate with the risk assumed in extending the credit. To the extent that riskier applicants are served with higher-cost credit rather than by being refused credit, the variables 12. The specific multivariate technique employed was the associated with ex ante default risk would more likely corre- logit model. This technique is one in a family of econometric late with payment performance as well. models that may be used to estimate statistical relationships 11. Debt-service burdens are measured by the estimated when the dependent variable takes on a limited number of monthly ratio of total debt payments to income. values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

226 Federal Reserve Bulletin • April 1991 debt-service burdens, educational attainment, 5. Severity of late payment problems the number of children under eighteen years of Percentage distribution age in a household, and marital status. Higher Percentage of late debt-service burdens were positively related to Number of late payments payers with at least more than thirty days past due one payment more than late payment problems, as was the number of thirty days past due young children in a household, while separated 1 3333333333344444444444...........99999999999 or divorced heads of households were also 2 2222222222266666666666...........66666666666 3 2222222222200000000000...........66666666666 significantly more likely to report payment 4 11111111111...........88888888888 problems than either married couples or other 5 22222222222...........88888888888 6-9 66666666666...........88888888888 single households. In considering all factors 10 or more 66666666666...........55555555555 simultaneously through this approach, no sta- Total 111111111110000000000000000000000...........00000000000 tistically significant relationship was found be- MEMO tween the incidence of payment problems and Percentage of all indebted households that had at least one payment more than either the age of the household head or housing- thirty days past due 99999999999...........22222222222 tenure status. In general, the level of household Number of payments more than thirty days income was also not found to be a good predic- past due Mean 22222222222...........99999999999 tor of payment performance, except for those in 22222222222...........00000000000 the highest income quintile. The analysis found SOURCE. Surveys of Consumer Attitudes, September and November 1990, that compared with households in the lowest- and January 1991, Survey Research Center, University of Michigan. income quintile, the highest-income families were much less likely to fall behind in their payments. 20 percent with any instance of late or missed payments) reported at least one payment sixty Severity of Payment Problems or more days delinquent during the preceding twelve months. Summary statistics, such as those presented in A second way to measure the severity of the previous sections, provide a broad perspec- payment problems is to examine the distribution tive on the recent performance of consumers in of late payers by the number of payments on paying their debts. These statistics, however, do which they fell behind by more than thirty days not convey information, except in the most gen- during the previous year (table 5). Among the eral sense, about the severity of payment prob- households who had at least one payment more lems among indebted households. than thirty days late, most reported only a limited Households who reported falling behind in number of instances in which payments were paying their debts were asked about the number behind by this much. Eighty-two percent of the of payments that were more than thirty days late households that had at least one payment late by and whether any of these payments were as more than thirty days were this late on three or many as sixty days late. All respondents report- fewer of their payments during the year preceding loans more than thirty days in arrears were ing the interview. At the other end of the specalso asked why they fell behind, what they did trum, 7 percent of the households who were late about it, and what actions creditors took in at least once by more than thirty days reported response to the late or missed payments. ten or more such instances. Overall, the mean Overall, the survey found that 9 percent of all and median number of payments more than thirty indebted households, which is two-thirds of days past due for those with such late payments households reporting late payments, fell behind were 2.9 and 2.0 respectively. If having more more than thirty days on one or more of their than three payments past due for more than debt obligations in the year preceding the sur- thirty days in a twelve-month period is considvey (table 3). The survey further found, how- ered "serious," then about 18 percent of all late ever, that relatively few households fell sixty or payers, or roughly 3 percent of all debtors, could more days behind in their payments. Only 3 be said to have had a serious debt payment percent of all indebted households (or roughly problem. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Payment of Household Debts 227 Reasons for Late Payment cent of the total, were to call the borrower, send a letter, or send additional billing notices.14 Other Of those consumers who have had at least one actions taken by creditors were to suggest new payment more than thirty days late, most indi- payment plans, notify credit reporting agencies, cated that the main reasons for their difficulties and cancel lines of credit. Only one household were that they became overextended by taking reported the repossession of an item securing a on too much debt or they experienced an unfore- loan. In about 19 percent of the cases, responseen change in their employment or health sta- dents reported that creditors took no significant tus. Overall, 55 percent of the families experienc- action in response to the late payments. ing payment problems indicated that they became overextended; 6 percent experienced medical-related problems; and 24 percent either IMPLICATIONS OF SURVEY FINDINGS lost their jobs, were not working, or had suffered a cutback in the number of hours worked.13 A Some insights into the aggregate delinquency fairly small group of households (roughly 14 statistics developed from lender reports may be percent) reported that they became delinquent drawn from the results of the household survey, either because they were on vacation or forgot to although some conceptual differences prevent mail their payment. simple comparisons between the two types of data. For example, one difference is that the Consumer Response aggregate statistics from industry sources reflect to Payment Difficulties the proportion of loans delinquent at a particular time, while the household survey identifies bor- Individuals facing debt payment problems re- rowers who had been delinquent at any point in spond in a variety of ways. Nearly 40 percent of the twelve months preceding the survey date, those who were more than thirty days behind in regardless of their current status. Another differtheir payments reported that they caught up on ence is that the industry statistics usually apply their delinquencies the next month or paid to a specific type of lender, while the survey of "when they were able." Other households delin- households asked that late payments to any type quent in their payments cut back on other types of lender be reported. of spending, took second jobs, worked longer Despite these differences, comparisons behours, sold various items to raise funds, or tween the two types of delinquency statistics borrowed or received gifts from relatives or can be informative. For example, the higher friends. About 22 percent of late payers reported that the household-reported delinquency rate is that they called their creditor about the problem; for a given type of loan relative to an industryin some cases, the terms of the loans were reported rate, the more widely dispersed lateextended, in others new loans were obtained. payment behavior is among the debtor popula- Some late payers, about 12 percent, said that tion. If a household-reported delinquency rate they took no action in response to their late (covering twelve months) is close in magnitude payments. to a corresponding industry-reported rate (for a given point in time), that suggests that industry- Creditor Responses to Late Payments reported delinquencies reflect a relatively small set of chronically delinquent debtors. On the The survey asked households that were more other hand, if the household-reported rate than thirty days late in making their loan pay- markedly exceeds the rate reported by lenders, ments what actions creditors took in response. that suggests that a larger group of individuals is The most common responses mentioned, 71 per- occasionally delinquent. That is, it would imply 13. Included in the medical-related category are situations 14. Some of the letters were reminders, others threatened in which insurance failed to cover medical expenses. specific action, still others were notifications of late charges. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

228 Federal Reserve Bulletin • April 1991 that a borrower misses a payment one month, conclusion is based on the relatively few survey but subsequently gets back and stays on sched- respondents that reported payments as much as ule and is replaced in the delinquent category sixty days late, the small fraction of borrowers by another short-term delinquent the next with several instances of late payment, and the month. statements of respondents concerning what ac- For consumer loans, exclusive of credit tions they took after missing loan payments. In cards, the ABA reported an aggregate thirty- that the survey was conducted during a period day delinquency rate of about 2.5 percent on of economic growth, the question may be raised average during 1990, as indicated in chart 2. as to whether these patterns would hold during From the household survey, about 8.7 percent an economic downswing. The answer cannot be of those having such debts (combining observa- known with certainty. It should be noted, howtions for vehicle loans and for other installment ever, that aggregate debt burdens were reladebt in table 3) had been delinquent some time tively high in the period surveyed, and the during the previous twelve months. The rela- economy, while not in recession, was sluggish, tionship between the ABA and household sur- which suggests some broad applicability for the vey rates suggests a moderate degree of rota- results reported here. tion from period to period among those identified as delinquent. (If no one were late more than once a year or for as long as sixty APPENDIX: SURVEY OF CONSUMER days, the survey-based rate should be about ATTITUDES twelve times the aggregate rate.) Information from the household survey about To obtain information on consumer debts and the number of instances of delinquency also recent household experience with repayment sheds light on the severity of delinquencies in the problems, the Federal Reserve Board developed aggregate. As shown in table 5, several house- questions that were included in the September holds in the survey reported multiple instances of and November 1990 and January 1991 Survey of late payments. Among those who were thirty Consumer Attitudes conducted by the Survey days late at least once, 18 percent said they were Research Center of the University of Michigan. that late on more than three occasions. From the Interviews were conducted by telephone, with distribution in table 5, it can be calculated that telephone numbers chosen from a cluster sample these frequently late debtors accounted for of residential numbers. The sample was chosen roughly half of all instances of late payment to be broadly representative of the four major among surveyed households. When this approx- regions—Northeast, North Central, South, and imation is applied to the ABA's installment loan West—in proportion to their populations (Alaska delinquency rate of around 2.5 percent, it ap- and Hawaii were not included). For each telepears that perhaps 1.25 percent of the installment phone number drawn, a randomly selected adult loans on banks' books at a given time are owed from the family was the respondent. by persons with a chronic late-payment problem. The survey defines the family as any group of The actual figure is likely to be lower, however, persons living together who are related by marbecause the classification of individuals as riage, blood, or adoption, and any individual chronic late payers was based on the number of living alone or with persons to whom the individmissed payments for any type of loan a person ual is not related. The head of the family is had. The proportion of debtors with multiple late defined as the individual living alone, the male of payments for a single category of loans would be the married couple, or the adult in a family with at least somewhat smaller. more than one person and only one adult. Gen- On balance, the household survey data sug- erally, when there is no married couple and more gest that a substantial proportion of the loans than one adult, the head is the person most that are past due at a point in time do not reflect familiar with the family's finances, or the one serious payment problems, but ones that will be closest to age 45. Adults are persons aged 18 rectified within a reasonably short period. This years or more. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Payment of Household Debts 229 Together the surveys sampled 1,534 families, 668 A.l. Approximate sampling errors of survey results, of whom were homeowners with outstanding mort- by size of sample1 gage debt. Six hundred and fifty-six additional fam- Percentage points ilies had outstanding consumer credit but no mort- Size of sample SSuurrvveeyy rreessuulltt gage debt. Altogether, 187 of the 1,331 indebted ((ppeerrcceenntt)) 100 200 1,500 families reported falling behind in at least one of 50 111000...555 666...222 333...222 their scheduled loan payments in the twelve months 30 or 70 999...666 555...777 222...999 before their interview. The survey data have been 20 or 80 888...444 444...999 222...666 10 or 90 666...333 333...777 111...999 weighted to be representative of the population, 5 or 95 444...666 222...777 111...444 thereby correcting for differences among families in 1. The figures in this table represent two standard errors. Hence, for most the probability of their being selected as survey items, the chances are 95 in 100 that the value being estimated lies within respondents. Estimates of population characteris- a range equal to the reported percentages, plus or minus the sampling error. tics derived from samples are subject to errors based on the degree to which the sample differs sampling error for proportions derived from samfrom the general population. Table A. 1 indicates the ples of different sizes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

230 Treasury and Federal Reserve Foreign Exchange Operations This quarterly report, covering the period No- THE FIRST PART OF THE PERIOD: EARLY vember 1990 through January 1991, provides TO MID-NOVEMBER information on Treasury and System foreign exchange operations. It was presented by Sam In the early part of the period, market attention Y. Cross, Manager of Foreign Operations of centered on evidence of diverging growth and the System Open Market Account and Execu- interest rate trends in the major industrial econtive Vice President in charge of the Foreign omies. Ever since the Iraqi invasion of Kuwait in Group of the Federal Reserve Bank of New August and the associated rise in oil prices and York. Daniel H. Brotman was primarily respon- decline in consumer confidence, analysts had sible for preparation of the report.' been progressively revising downward their forecasts for U.S. economic growth. The release of October payroll employment data in the first The dollar was subjected to conflicting forces week of November revealed an unexpectedly during the November-January period. Sentilarge drop that, together with subsequent data, ment toward dollar investments continued to reinforced the view that the U.S. economy was deteriorate as the U.S. economy weakened and slowing down. At the same time, preliminary as interest rate differentials moved further in indications suggested that inflationary pressures favor of foreign currencies. But at times, politwere subsiding. Under these circumstances, ical developments abroad—particularly the Permarket participants widely expected that the sian Gulf conflict—encouraged greater demand Federal Reserve would continue to ease money for dollars and limited the extent to which market conditions and possibly reduce its disnegative sentiment toward the currency was count rate. reflected in exchange rates. With these offset- In contrast, market forecasts for the German ting factors helping to maintain a sense of and Japanese economies remained relatively uptwo-way risk to dollar exchange rates, the dolbeat. The need to rebuild East Germany was lar ended the period mixed against major forseen as providing ongoing stimulus to the Gereign currencies, and the U.S. monetary authorman economy. Japanese economic data provided ities conducted no intervention operations in little evidence that the economy or price presthe foreign exchange market. The dollar closed sures were slowing in response to the central the period down slightly against the German bank's tight policy stance. Mindful of these ecomark and up slightly against the Japanese yen. nomic trends, market participants expected that On a trade-weighted basis, as measured by the German and Japanese interest rates would either staff of the Board of Governors of the Federal rise further or would remain at existing levels. Reserve System, the dollar ended the period 1 Indeed, on the first day of the period, the percent below its level at the beginning of the Bundesbank announced an increase of Vi of 1 period. percentage point in its official Lombard rate, and many market participants expected further tightening after German national elections in early December. The Bank of Japan was considered 1. The charts for the report are available on request from less likely than the Bundesbank to tighten mon- Publications Services, Board of Governors of the Federal etary policy but was nonetheless seen as unwill- Reserve System, mail stop 138, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

231 ing to ease monetary conditions, given high oil supporting the dollar at times during early and prices and Japan's tight labor market conditions. mid-November. Developments in the military The divergent outlook for interest rates and diplomatic arena at that time suggested that weighed on the dollar in early to mid-November. the probability of a war in the near term was Short-term interest rate differentials had been increasing. Many market participants interpreted steadily moving against the dollar since spring the U.S. Administration's announcement on No- 1989, when dollar investments held an interest vember 8 of a large reinforcement of U.S. forces rate advantage of 4 to 6 percentage points rela- in the Gulf as indicating that the United States tive to the mark and yen. By late summer 1990, was preparing for an outbreak of hostilities. Past the dollar's short-term interest rate advantage experience had demonstrated a tendency for the had been entirely eliminated. Thus, in early U.S. dollar exchange rate to benefit from "safe- November, expected further declines in dollar haven" inflows during periods of political instainterest rates, coupled with steady to higher rates bility or military conflict abroad, and market abroad, threatened to push short-term U.S. in- participants increasingly came to build in a safeterest rates well below mark and yen rates for the haven premium for the dollar. In that environfirst time since 1980. Under these circumstances, ment, dealers became increasingly reluctant to the dollar declined 3V4 percent against the mark take on large, short dollar positions. Thus, notfrom its opening level of DM1.5170 to its No- withstanding negative sentiment about the U.S. vember low of DM1.4660 on November 16. Its economy and the belief that interest rate differdecline against the yen measured 2Vi percent entials against the dollar would increase, the from ¥130.07 at the opening of the period prospect of a safe-haven effect associated with to ¥126.70 on November 22. the outbreak of war helped cushion the dollar's The dollar was not the only currency affected decline. by the divergent performance of major national economies. Pressures also developed among the European currencies during early November as THE MIDDLE OF THE PERIOD: LATE the pace of German expansion contrasted with NOVEMBER TO MID-JANUARY slowing growth or actual declines in the United Kingdom, Italy, France, and certain other Euro- Beginning in late November, the dollar came pean countries. The market conditions that had under several waves of upward pressure that allowed several European central banks to lower pushed the currency above its opening levels and domestic interest rates earlier in the year dissi- to its highs of the period. These pressures pripated with the November increase in German marily reflected heightening expectations that the interest rates. As the mark moved up from its Gulf conflict would result in an early war. But the relatively low position in the exchange rate dollar's rise was aided by other factors, including mechanism of the European Monetary System a perceived deterioration of the political situation (EMS), several participating central banks re- in the Soviet Union and two episodes of acute sponded to the softening of their currencies rel- upward pressure on U.S. money market rates. ative to the mark by raising interest rates at a From November 29, when the U.N. Security time when their economies were weakening or by Council set a deadline for Iraq to withdraw from intervening against marks to support their cur- Kuwait, until January 16, when Operation Desert rencies. The Italian lira, the French franc, and Storm began, market attention focused almost the British pound were the currencies that came entirely on the Gulf crisis. As the threat of war under the strongest downward pressures in No- hung over the market during this month and a vember. half, market participants of all types showed an Dollar selling in response to the diverging increased reluctance to take on new risks or to economic trends was tempered somewhat by respond fully to changes in underlying economic developments in the Persian Gulf. The Gulf con- conditions. With interbank dealing in any case flict, while not the dominant market force that it about to wind down as the year-end approached, later became, served as a background factor many dealing institutions took the opportunity to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

232 Federal Reserve Bulletin • April 1991 impose an early halt to or reduction in their 1. Federal Reserve reciprocal currency arrangements marketmaking activities. Many commercial and Millions of dollars institutional participants decided to move to the Amount of sidelines and, to the extent possible, to postpone Institution facility, January 31,1991 further transactions until the Persian Gulf situation was clarified. In this environment, markets Austrian National Bank 250 National Bank of Belgium 1,000 became unusually thin and illiquid, and managers Bank of Canada 2,000 National Bank of Denmark 250 of interbank trading rooms at many institutions Bank of England 3,000 took steps to reduce the positiontaking latitude of Bank of France 2,000 Deutsche Bundesbank 6,000 their trading staff. Bank of Italy 3,000 Bank of Japan 5,000 Meanwhile, pressures in the federal funds and Bank of Mexico 700 other short-term money markets began to appear Netherlands Bank 500 in late November as banks bid aggressively to Bank of Norway 250 Bank of Sweden 300 secure money to cover year-end accounting Swiss National Bank 4,000 statements. These pressures, coming earlier and Bank for International Settlements with much greater intensity than in past years, Dollars against Swiss Francs 600 Dollars against other authorized European occurred against a background of heightened currencies 1,250 concerns over the quality of bank credit. At the Total 3300,,110000 same time, the efforts of many institutions to improve capital ratios, trim balance sheet size, ter Shevardnadze raised concerns about the outand enhance internal liquidity reduced the avail- look for the success of the Soviet leadership's ability of, and increased the demand for, short- policies of political openness and economic reterm interbank funds, thereby pushing rates up- structuring. Because Germany was viewed as ward. Some market participants who were most vulnerable to the spillover effects of negaunable to secure funds in the interbank market tive developments in the Soviet Union, the mark bought dollars in the foreign exchange market to eased. The mark moved lower not only against meet their year-end requirements. In response, the dollar and the yen but also against its partner the dollar moved up in late November and early currencies in the EMS. The mark's softer tone December. When these pressures temporarily helped reduce, albeit temporarily, pressures that subsided in early December, the dollar retraced had been building throughout December within most of its rise and, in fact, edged down to touch the EMS exchange rate mechanism. a new post-World War II low against the mark of In these circumstances, the dollar reacted only DM1.4625. But year-end pressures reemerged modestly to a series of actions by the Federal late in December and again helped support the Reserve to ease monetary conditions. These acdollar at that time. tions included three moves in December and Another reason for the dollar's rise starting in early January that led to declines in the federal late November was the growing expectation that funds rate totaling 75 basis points and one move the finance ministers and central bank governors to reduce the Federal Reserve discount rate 50 of the Group of Seven (G-7) would soon meet and basis points on December 18. In addition, the discuss exchange rate issues. With strains ap- Federal Reserve on December 2 announced pearing in the exchange market involving the plans to eliminate reserve requirements on nondollar and other currencies, some market partic- personal time deposits and on net Eurocurrency ipants believed that the G-7 might take steps to liabilities in two stages during December. stabilize exchange rates. This notion gained cre- Trading in the foreign exchange market redence as several G-7 officials indicated that a mained listless even after the usual year-end meeting would occur in January. holiday lull. During the early weeks of January, Around mid-December, market unease over as participants awaited the January 15 U.N. the political situation in the Soviet Union also deadline for Iraq to withdraw from Kuwait, the contributed to the dollar's resilience. The resig- dollar tended to move during the day in response nation on December 20 of Soviet Foreign Minis- to the latest statements or signals regarding dip- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Treasury and Federal Reserve Foreign Exchange Operations 233 2. Drawings and repayments by foreign central banks under special swap arrangements with the U.S. Treasury Millions of dollars; drawings or repayments (—) Outstanding as Outstanding as Central bank drawing Amount of of November 1, November December January of January 31, on the U.S. Treasury facility 1990 1991 Central Bank of Honduras1 8822..33 3344..88 --3344..88 NOTE . Data are on a value-date basis. Components may not add to totals due 1. Represents the ESF portion of a $ 147.3 million short-term credit facility to rounding. established on June 28,1990. lomatic efforts to avert war. Thus, the dollar Thereafter, the dollar edged lower through the eased after announcements that U.S. Secretary remainder of January. From time to time, dollar of State Baker would meet his Iraqi counterpart demand increased in response to concerns over in Geneva and that the U.N. Secretary General the severity and scope of the Gulf conflict. This would visit Iraqi leader Saddam Hussein in Bagh- was the case, for instance, when missile attacks dad, only to rebound later when these ap- on Israel raised fears that the war might widen. proaches proved fruitless. Against this back- But the dollar's tendency to firm on negative ground, however, the dollar edged up reports out of the Gulf began to wane as market intermittently. The dollar's movements around participants appeared to grow more confident this time were greatest against the Japanese yen, that the war would be relatively short and that which was seen as having the most to lose from the United States and its allies would be victoriany disruption in oil supplies as a result of war ous. and the most to gain from an expected oil price As the exchange market grew accustomed to decline in the event of a peaceful settlement. But news from the Gulf and liquidity returned to the dollar also rose against the mark. By mid- more normal levels, market participants directed January, the dollar was trading up to levels as more attention to the economic developments high as ¥137 against the yen and DM1.55 against and interest rate changes that had gone almost the mark, or roughly 5 percent and 2 percent unnoticed in December and early January. respectively above its early November levels Against this background, the dollar began to against those two currencies. decline again. Statements by Federal Reserve Chairman Greenspan on the potential for further monetary easing if growth of monetary aggre- THE END OF THE PERIOD: MID- TO LATE gates remained sluggish and on the risks of a long JANUARY and deep recession if the Gulf war were to drag on were noted. These comments, coupled with The dollar's response to the outbreak of war on President Bush's call for lower interest rates in January 16 took many market participants by his State of the Union speech, heightened expecsurprise. Having anticipated a wave of sustained tations of further near-term cuts in dollar interest dollar buying upon the outbreak of war, many rates. interbank dealers had quietly been building up In a statement issued after their January 21 long dollar positions as the January 15 deadline meeting, G-7 finance ministers and central bank approached. In the event, the dollar did move up governors "agreed to strengthen cooperation and on the first reports of bombing over Baghdad to to monitor developments in exchange markets" highs of DM1.5525 and ¥138.00. However, the and stated that they were "prepared to respond currency quickly gave way to selling pressures as as appropriate to maintain stability in internamarket participants took profits on these long tional financial markets." Market participants positions. Within a few hours after Operation did not conclude at the time, however, that Desert Storm began, the dollar had declined officials were prepared to take immediate and about 3 to 4 percent from its highs. Oil prices fell concrete action to stem further dollar declines. back sharply while bond and stock markets ral- Some market participants came to interpret the lied around the world. G-7 statement of January 21 as suggesting that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

234 Federal Reserve Bulletin • April 1991 further interest rate increases abroad might be lion of foreign currencies from the Federal Reavoided as U.S. rates declined. Indeed, the ex- serve on November 1 to reverse certain previous pectation that Germany would postpone further warehousing operations. From that date through tightening became so widespread during the last the close of the period, outstanding warehousing two weeks in January that pressures within the of foreign currencies with the Federal Reserve EMS eased, and European authorities were re- remained at $4,500 million, down from the peak of portedly able to scale back their intervention $9,000 million reached in March 1990. mark sales. On the last day of the period, how- The Treasury also continued to provide Speever, the Bundesbank increased its official dis- cial Drawing Rights (SDRs) in exchange for count and Lombard rates 50 basis points, an dollars to foreign monetary authorities requiring action whose timing took the market by surprise. SDRs for the payment of charges by the Interna- However, the Bundesbank characterized its tional Monetary Fund and for repurchases. move as technical and subsequently took steps to These exchanges totaled $204.3 million equivakeep money market rates from rising. lent of SDRs over the three-month period. Thus, as the period closed, sentiment toward The ESF's share of a multilateral credit facility the dollar remained negative as market partici- established in June 1990 for Honduras was repaid pants, believing that dollar interest rates would in full during the period, with payments of $34.0 decline further, expected interest rate differen- million on November 15 and $0.8 million on tials to continue to move against the dollar. The November 20. The ESF portion of this special dollar closed the period at DM1.4768 against the facility expired at the end of November, and as of mark, down 2Vi percent from its November the end of January 1991 the Treasury had no opening levels and only slightly above its post- special swap arrangements outstanding. World War II low against that currency. Against As of the end of January, cumulative bookthe yen, the dollar closed the period 1 percent keeping or valuation gains on outstanding foreign above its opening levels at ¥131.25. currency balances amounted to $5,688.0 million As noted in the report for the August-Septem- for the Federal Reserve and $3,027.2 million for ber 1990 period, the U.S. Treasury Exchange the ESF. The latter figure includes valuation Stabilization Fund (ESF) repurchased $2,500 mil- gains on warehoused funds. These valuation gains represent the increase in dollar value of outstanding currency assets valued at end-of- 3. Net profits or losses (-) period exchange rates, compared with rates preon U.S. Treasury and Federal Reserve vailing at the time the foreign currencies were current foreign exchange operations1 acquired. Millions of dollars The Federal Reserve and the ESF regularly U.S. Treasury invest their foreign currency balances in a variety Federal Exchange Period and item Reserve Stabilization of instruments that yield market-related rates of Fund return and that have a high degree of quality and Valuation profits and losses on liquidity. A portion of the balances is invested in outstanding assets and liabilities as of October 31,1990 55,,336633..33 22,,887766..33 securities issued by foreign governments. As of November 1,1990-January 31,1991 the end of January, holdings of such securities by 00 00 the Federal Reserve amounted to $8,114.8 mil- Valuation profits and losses on outstanding assets lion equivalent, and holdings by the Treasury and liabilities as of January 31,1991 55,,668888..00 33,,002277..22 amounted to the equivalent of $8,000.6 million valued at end-of-period exchange rates. • 1. Data are on a value-date basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

235 Industrial Production and Capacity Utilization Released for publication on February 15 creased 0.6 percent, slightly less than during the previous three months. Total industrial capacity Industrial production fell 0.4 percent in January, utilization fell 0.5 percentage point in January to following drops of 1.6 and 1.1 percent (revised) in 79.9 percent, nearly 3 percentage points below its November and December. Output of autos and level a year earlier. At 106.5 percent of its 1987 trucks, which fell sharply throughout the fourth annual average, total industrial production in Janquarter of last year, turned up in January. Exclud- uary was 0.9 percent below its level of a year ago. ing motor vehicles and parts, production de- In market groups, production of consumer Industrial production indexes Twelve-month percent change Twelve-month percent change Products 1986 1987 1988 1989 1990 1991 1986 1987 1988 1989 1990 1991 Capacity and industrial production Ratio scale, 1987 production = 100 Ratio scale, 1987 production = 100 — Total industry —, 140 —Manufacturing 140 _ Capacity _ Capacity _ 120 120 "" ^ - 100 - 100 — ^ Production — 80 Production — 80 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Percent of capacity Percent of capacity Total industry Manufacturing 90 Utilization 80 70 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1979 1981 1983 1985 1987 1989 1991 1979 1981 1983 1985 1987 1989 1991 All series are seasonally adjusted. Latest series, January. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

236 Federal Reserve Bulletin • April 1991 1987 = 100 Percentage change from preceding month Perchange, Industrial production 1990 1991 1990 1991 Jan. 1990 to Oct.r Nov.r Dec.r Jan.P Oct.r Nov.1" Dec.r Jan." Jan. 1991 Total index 109.9 108.2 107.0 106.5 -.6 -1.6 -1.1 -.4 -.9 Previous estimates 109.8 107.8 107.1 -.7 -1.8 -.6 Major market groups Products, total 111.0 109.2 108.3 107.9 -.3 -1.6 -.8 -.3 -.4 Consumer goods 108.6 106.5 105.8 105.7 .0 -2.0 -.6 -.1 -.2 Business equipment 125.4 122.7 120.7 120.5 -.8 -2.2 -1.6 -.2 2.1 Construction supplies 103.1 101.5 100.6 98.8 -.7 -1.5 -.9 -1.8 -8.5 Materials 108.3 106.6 104.9 104.4 -1.0 -1.6 -1.6 -.5 -1.7 Major industry groups Manufacturing 110.7 108.9 107.3 106.9 -.5 -1.6 -1.4 -.4 -1.1 Durable 112.5 109.8 107.3 106.9 -1.1 -2.5 -2.2 -.4 -1.6 Nondurable 108.4 107.7 107.4 106.9 .3 -.6 -.3 -.4 -.6 Mining 102.6 102.2 102.3 102.2 -1.3 -.4 .1 .0 .6 Utilities 109.2 106.8 107.9 107.1 -1.1 -2.1 1.0 -.7 .3 Percent of capacity Capacity growth, CCaappaacciittyy uuttiilliizzaattiioonn 1990 1990 1991 Jan. 1990 Average, Low, HHiigghh,, to 1967-90 1982 1988-89 JJaann.. 11999911 Jan. Oct.r Nov.r Dec.r Jan.P Total industry 82.2 71.8 85.0 82.7 83.0 81.5 80.4 79.9 2.5 Manufacturing 81.5 70.0 85.1 82.0 82.2 80.7 79.3 78.8 2.9 Advanced processing 81.1 71.4 83.6 80.5 81.3 79.7 78.5 78.2 3.3 Primary processing 82.4 66.8 89.0 85.7 84.3 83.0 81.4 80.3 2.2 Mining 87.4 80.6 87.2 87.8 89.9 89.7 89.9 89.9 -1.8 Utilities 86.8 76.2 92.3 84.8 85.6 83.7 84.4 83.7 1.6 r Revised. NOTE. Indexes are seasonally adjusted, p Preliminary. goods other than motor vehicles decreased again ance, since October. Output of textiles, which in January ; since October, output in this category dropped sharply late last year, rose somewhat has fallen about VA percent, reflecting, in part, in January; however, production of chemicals sizable cuts in clothing, energy products for declined last month. Output of energy materials consumer use, and goods for the home, such as was little changed in both December and Januappliances and furniture. Output of business ary. equipment excluding motor vehicles fell 0.5 In industry groups, manufacturing production percent in January, owing mainly to another declined 0.4 percent in January, lowering the large drop in the production of information- operating rate at factories to 78.8 percent. The processing equipment, particularly computers. operating rate for manufacturing is now about Production of construction supplies declined 2YI percentage points below its 1967-90 averfurther in January; it has fallen more than age, and at its lowest rate since September 7 percent since last summer. Among materials, 1986. The production declines in January, as output of durables has dropped over the past well as during the fourth quarter, hit virtually four months, with much of the weakness re- all major industries, with most operating rates flecting the effects of the cutbacks in motor falling below their 1967-90 averages. Large vehicle production. In January, production of declines in the last few months have come in parts and materials for autos and trucks firmed, motor vehicles and related industries, such as but output of basic metals, particularly steel, fabricated metal products and steel. Construcwas curtailed again. Production of nondurable tion-related industries, such as lumber, furnimaterials also has weakened steadily, on bal- ture, and stone, clay, and glass products, also Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization 237 have been hard hit, as have petroleum refining, The capacity utilization and capacity data for textiles, and apparel. Mining output has only 1990 have been revised. The capacity growth fallen off slightly during the past few months, rate for total industry during 1990 was revised while utilities production has declined some- down slightly; the most significant adjustments what more, reflecting the relatively mild winter. occurred in the motor vehicles industry. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

238 Statements to the Congress Statement by Alan Greenspan, Chairman, Board and other intermediaries from credit losses that of Governors of the Federal Reserve System, may result from adverse movements in prices. before the Committee on Agriculture, Nutrition, Without appropriate safeguards, losses can lead and Forestry, U.S. Senate, February 7, 1991. to the failure of key market participants, jeopardize contract performance, and threaten the in- I welcome the opportunity to appear on this tegrity not only of the market in question but of panel this morning to discuss title III of S.207, other markets as well. Margins, along with cap- "The Intermarket Coordination Act of 1991." ital requirements, liquidity requirements, posi- This bill addresses important issues affecting the tion limits, loss-sharing agreements, and other integrity of our financial markets, and I compli- operational controls, are tools designed to limit ment the committee on the contributions it has the exposure of financial exchanges and particimade toward better understanding of these issues pants to problems that may arise in the markets. and toward strengthening the regulatory system. Containment of risk through the use of these Many of the questions addressed in this bill are tools is essential to maintain public confidence in extremely complex, and any proposed changes the soundness of our financial markets and to inevitably involve tradeoffs on which there will avoid excessive strains on our clearing and paybe disagreement. The compromises that mem- ment systems. bers of this committee and of the Committee on Recognition of the important role for margins Banking, Housing, and Urban Affairs have made leads to the critical operational question of how in putting this package together have been one determines the adequate level of margins for reached in the spirit of bridging differences in prudential purposes. Clearly if margins are set viewpoint and moving ahead. too low, markets and clearing systems will be My remarks this morning will focus, as you exposed to undesirable levels of risk. On the have requested, on two provisions of the act that other hand, if margins are set much higher than are particularly pertinent to the Board of Gover- necessary for prudential purposes, liquidity in nors of the Federal Reserve System. The first is the markets will be reduced, and competitive federal authority to set margins for stock-index pressures may drive business to less regulated futures contracts, and the second is the "exclu- markets, probably offshore. sivity provision" of the Commodities Exchange For some time, the Board has been of the view Act (CEA). The Board's views on both these that the exchanges and self regulatory organizaissues have been presented in testimony before, tions (SROs) are well positioned for developing and letters to, the Congress on several occasions and refining margin policy. These organizations in the past, and my statement today will expand have a strong economic interest in maintaining a bit on these views in the context of the current the integrity of their markets and membership, as proposals. Let me begin with margins. well as a close familiarity with the instruments and trading practices in their markets. Moreover, they have the flexibility to adjust margin requirements quickly in response to changing economic, MARGIN A UTHORITY ON financial, or institutional developments. While STOCK-INDEX FUTURES we continue to believe that the SROs should play a lead role in structuring margin policy, the As I have noted in previous testimony, the Board Board believes that federal oversight is important considers the primary purpose of margins to be to ensure that margins on stocks and stock-index to protect the clearing organizations, brokers, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

239 futures are adequate to protect against a wide Which agency, the CFTC or the SEC, is better range of conditions. suited for oversight of stock-index futures is less The need for federal regulation of margins on clear to us. The CFTC can be viewed as the stock-index futures has become clearer in recent better choice because of its oversight of the years, especially in light of behavior during peri- futures exchanges and their clearing organizaods of market stress. In particular, I expressed tions. On the other hand, the strong price and concerns last year that the self regulatory orga- trading linkage among stocks and stock-derivanizations tended to set margins at levels too low tive options and futures products presents a case in periods of price stability and then were com- for having a single regulator for all equity-related pelled to raise them when market prices moved products. The SEC, to whom the Board, by rule, sharply. Such behavior tends to exacerbate li- already has delegated oversight authority on opquidity pressures on market participants and tions products and which has prudential respontheir creditors and the clearing and payment sibility for broker-dealers and securities markets, systems in periods of unusual price volatility. To could be considered a logical choice to foster avoid the possibility that margin decisions of a consistency of margins across equity-related given exchange or clearing organization may not products. We also appreciate that the Federal fully take into account implications across other Reserve's position as the authority for setting markets and payment systems, a federal agency margins on stocks and stock options places us in should have ultimate oversight authority. The a position to achieve consistency across all equi- Intermarket Coordination Act provides for just ty-related instruments. such federal responsibility, and the Board en- The Board recognizes the difficulty and the dorses this concept. urgency of resolving this particular question. In Nonetheless, while the Board believes that these circumstances, while we prefer that the federal oversight is necessary, we have been of authority rest with one of the other agencies for the view that this authority should rest with the reasons discussed, if the Congress were to either the Commodity Futures Trading Commis- decide to assign this to the Federal Reserve, the sion (CFTC) or the Securities and Exchange Board would, of course, endeavor to discharge Commission (SEC). Let me explain our reasons the responsibility for margins on stock-index for this view. futures in a careful and serious manner. In so I noted earlier that margin requirements are doing, we would work closely with the other but one of many interdependent tools that play a agencies that have broader authority over the role in the management of risk. Other elements in entities that margins are intended to protect; in this process include, for example, capital re- this regard, the proposed legislation appears to quirements, surveillance activities, maintenance provide appropriate flexibility for implementing of guarantee funds, and financial support agree- such a system. ments. These factors have an important bearing on the overall level of risk associated with any given level of margins. Indeed, the margins ap- EXCLUSIVITY AND HYBRID INSTRUMENTS plied against stock-index futures are only one part of the total amount of margin held to protect Let me turn now to the provisions of the bill that the integrity of the clearing organizations and deal with the question of the CFTC's "exclusive member firms. The Board has been of the view jurisdiction" over futures products. The Board, that the agency or agencies that have overall as you know, has had serious concerns about the responsibility for supervision of the institutions current interpretation of the Commodities Exand the exchanges that trade these instruments change Act that requires any contract with an can bring to bear appreciably more day-to-day element of futurity to be traded only on a CFTCinformation in these areas. These agencies could regulated exchange. Interpreted broadly, any fibest take into account other elements of the risk nancial contract has some element of futurity; management system when choosing appropriate hence this provision affects a wide range of margin levels. existing and new financial products that might be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

240 Federal Reserve Bulletin • April 1991 offered outside the futures exchanges, including amendment explicitly directs the CFTC to exsome depository instruments that are subject to empt swap agreements and deposit accounts other regulatory safeguards. The potential for the offered by insured and regulated financial instistrict application of this principle to stifle the tutions if it finds that such exemptions are not development of new products was demonstrated contrary to the public interest. I believe that when the courts ruled that index participations these are positive steps that will provide the fell under the futures definition and could not be CFTC with greater ability to avoid conflicts such offered by the securities exchanges. as have occurred in the past and to limit the risk The proposed bill would modify the exclusivity that disputes over regulatory jurisdiction will restriction to allow certain hybrid products to have to be dealt with in the courts. More importrade either on a securities exchange or a futures tant, it should reassure the markets that financial exchange. In addition, it would give the CFTC innovations and new products will not be curbed authority to exempt certain other products. The by ambiguities in the regulatory process. • Statement by Alan Greenspan, Chairman, Board postwar recessions. An important reason for this of Governors of the Federal Reserve System, assessment is that one of the most negative before the Committee on Banking, Housing, and economic impacts of the Gulf war—the run-up in Urban Affairs, U.S. Senate, February 20, 1991. oil prices—has been reversed. Another is that the substantial decline in interest rates over the past I am pleased to appear before you again at these year and a half—especially in the past several monetary policy oversight hearings.1 As is the months—should ameliorate the contractionary convention on these occasions, I shall focus my effects of the crisis in the Gulf and of tighter remarks this morning on monetary policy and the credit availability. current situation in the economy. However, the The major danger to a near-term recovery is events of the past year have once again under- that the erosion in purchasing power and frayed lined the ways in which the state of our nation's consumer and business confidence stemming banking system can affect the transmission of from the recession and war could interact with a monetary policy to the economy. Consequently, weakened financial system to produce a further I think I should comment at least briefly on some decline in the economy. The recent actions we of the regulatory issues bearing on the willing- have taken, along with the ranges for growth of ness of banks to extend credit. money and credit this year, which I shall be I should like to start, however, with an over- discussing in a moment, were designed to reduce view of the economic outlook. As you know, the probability of such an outcome and to supbusiness activity turned down in the latter port a resumption of sustainable economic months of 1990 and appeared still to be declining growth, in the context of progress toward price through the early part of February. With the stability. unpredictability of events in the Middle East compounding the usual uncertainties attending any economic projection, it would be most un- ECONOMIC AND MONETARY POLICY wise to rule out the possibility that the recession DEVELOPMENTS IN 1990 AND EARLY 1991 may become more serious than already is apparent. Nonetheless, the balance of forces does When I last testified on our monetary policy appear to suggest that this downturn could well objectives in July, the economy appeared likely prove shorter and shallower than most previous to continue growing, though moderately. The objective of restoring a clear downward tilt to the path of underlying inflation while maintaining the economic expansion thus seemed attainable. In- 1. See "Monetary Policy Report to the Congress," Federal Reserve Bulletin, vol. 77 (March 1990), pp. 147-64. deed, data that became available subsequently Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 241 indicated behavior of economic activity in the also contributed. When the budget accord was third quarter consistent with that appraisal. finally reached in late October, its promise of That said, evidence in July of weaknesses in fiscal restraint over the next several years was certain regions and sectors of the economy sig- reflected in somewhat lower bond yields. Against naled caution. Notably, deteriorating market a backdrop of weakening economic activity and conditions for commercial real estate were limit- in light of the passage of the multiyear deficiting the ability of some borrowers to service reduction package, the Federal Reserve again loans, which, along with the restructuring of eased money market conditions. thrift institutions, induced lenders to pull back This policy action proved to be only the first of from extending credit to this sector. Banks also a series of easing moves extending through early were becoming less willing to make business this month. These moves were prompted in part loans—not only for highly leveraged transac- by subsequent information pointing to sizable tions, but more generally when industry or local contractions of consumer outlays and economic economic conditions looked at all unfavorable. activity stemming from the marked weakening of Tendencies toward such restraint, which might consumer confidence and purchasing power. normally have been expected in a time of uneven They also were taken in response to a lessening and generally less robust business prospects, of wage and price pressures and decidedly slugwere exacerbated by pressures on the capital gish growth in the monetary aggregates after positions of many institutions. In mid-July, to their surge in August and September. After conbetter ensure the economy's continued growth, tinued moderate expansion in the third quarter, the Federal Reserve adopted a slightly more real GNP turned downward, led by the decline in accommodative stance in reserve markets to consumer spending but also reflecting reduced counter the potential effect on spending of this construction activity and business inventory intightening of credit terms at depository institu- vestment. Industrial production began a rapid tions. descent in October, with the motor vehicle in- The invasion of Kuwait in early August dra- dustry accounting for an especially large share of matically altered the economic landscape. Oil the drop. Private employment also started to fall prices surged, simultaneously worsening pros- steeply, and the unemployment rate rose further. pects for both real income and inflation. The The associated rise in layoffs brought increased higher world oil prices transferred domestic pur- uncertainty to the household sector, which in chasing power to foreign oil exporters, while turn has kept consumer spending subdued. uncertainties about how the crisis would be re- The widening economic slack helped prevent solved shook household and business confi- the energy price surge from becoming embeddence. After the invasion, spending held up for a ded in ongoing wage and price inflation. The time before starting to soften, while the jump in increases in nominal wages and broader comoil prices fed through quickly to energy prices pensation measures diminished in the fourth more generally and to measures of overall infla- quarter after having exhibited initial signs of tion. Amid considerable volatility in financial slowing in the preceding three months. In Sepmarkets and concern about the inflation outlook, tember, the nonenergy component of the conbond rates moved back up and stock prices sumer price index (CPI) began to rise at a moved down, as many investors shifted to more slower pace. And in the final two months of the liquid instruments. Treasury bill rates eased, and year, inflation in the overall CPI fell back, as a surge in purchases of money market mutual energy prices topped out in November and fund shares boosted growth of the broader mon- declined in December in the wake of lower etary aggregates in August and September. crude oil prices. The success of coalition mili- Oil prices, which peaked at more than $40 per tary operations after the outbreak of war in barrel in early October, seemed to be the primary mid-January was seen in oil markets as reducsource of financial market uncertainty and vola- ing the odds of wide-ranging supply disruptions, tility; however, the fitful progress toward agree- and oil prices retreated still more, further imment on measures to reduce the federal deficit proving the near-term outlook for inflation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

242 Federal Reserve Bulletin • April 1991 This reduction of cost and price pressures has aimed specifically at relieving the tightening of given the Federal Reserve scope to move aggres- credit availability at depository institutions. sively to counter contractionary influences on Other short-term market interest rates generthe economy without contributing to market con- ally have fallen nearly as much as the federal cerns about the inflation outlook. Absent such a funds rate since mid-1990. Long-term interest lessening of price pressures, monetary policy rates also have retreated, and rates on fixed-rate easing probably would have risked a heightening mortgages are now in the vicinity of their lows of of inflation expectations, which could have put the past decade. Lower interest rates and oil the foreign exchange value of the dollar under prices have helped to lift some major stock price severe downward pressure and fed through to indexes to all-time highs. After firming in Decemlong-term interest rates, perhaps even pushing ber and early January on safe-haven demands, them higher. the exchange value of the dollar has shown The easing of policy also was keyed to the unwelcome weakening tendencies at times remeager expansion since September of the cently. broader monetary aggregates. As I shall be discussing more fully, the slowdown in money growth was worrisome because it seemed to THE BEHAVIOR OF MONEY AND CREDIT reflect a further tightening of credit availability as IN 1990 AND EARLY 1991 well as the weakening in spending. The surfacing of additional asset quality problems has height- As I indicated earlier, sluggish expansion of the ened financial strains on many banking institu- monetary aggregates was an important ingredient tions, placing pressures on capital positions and in the decisions to ease policy during recent boosting funding costs. In turn, banks have pro- months. The broader aggregates ended 1990 well gressively tightened their standards for granting down in the lower halves of their annual growth loans and have set still more restrictive terms and ranges. The Federal Open Market Committee conditions on the loans they have made. Strains (FOMC) recognized that the relationship bealso have been evident at other intermediaries, tween M2 and spending is uncertain, but the and many securities have been downgraded by slower growth of M2 in the latter part of 1990 and the rating agencies, suggesting that even those early 1991 brought the aggregate so far below our borrowers who are not relying on banks in many expectations that it seemed highly likely to be cases have faced higher costs and more restric- inconsistent with the Committee's longer-run obtive terms. jectives for the economy. In responding to evidence of economic weak- The weakness in M2 is a complex development ness, to a lessening of inflation pressures, and and requires careful interpretation. The shortfall to slow monetary growth, the Federal Reserve from our expectations appeared to be related to has used all three of its key policy tools. More the stalling of nominal income in the fourth accommodative reserve provision through open quarter and also to the circumstances surroundmarket operations, together with two cuts in the ing the extraordinary decline in assets at deposdiscount rate totaling a full percentage point, itory institutions last year, which in turn had have brought the federal funds rate down to implications for future, as well as current, spendaround 61/t percent. This important short-term ing. As their willingness or capacity to expand rate has fallen 2 percentage points since mid- their assets diminished, banks and thrift institu- 1990 and roughly 3V2 percentage points over the tions became less eager to attract deposits of all past two years. We also reduced the remaining kinds. Hence, they paid unusually low rates on reserve requirement on nonpersonal time and retail deposits in M2 relative to market interest similar accounts from 3 percent to zero. The rates. Moreover, public attitudes toward deposrequirement to hold nonearning reserves at the its also seemed to have been adversely affected Federal Reserve in effect imposes a tax on by developments in the depository sector; pubcredit intermediation at banks and thrift institu- licity about thrift closings, Bank Insurance Fund tions. This action lowered this tax and was losses, and credit quality problems at commer- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 243 cial banks evidently encouraged shifts of funds pected once the size of the runoff of thrift assets into Treasury securities or alternative nondeposit and of Resolution Trust Corporation (RTC) acinstruments. tivities became clear. But its increase was further The shifting of credit intermediation away depressed by a larger-than-expected decline in from depositories appeared likely to be having a bank credit growth. The fall-off in total deposidamping effect on the spending of those borrow- tory assets had an especially pronounced effect ers without ready access to alternative sources of on M3 because this aggregate includes, besides funds at comparable interest rates. Thus, part of retail deposits, certain managed liabilities whose the slow growth in retail deposits could be seen issuance is more sensitive to overall depository as symptomatic of developments in the credit- funding needs. In fact, currency and money granting process with adverse implications for market mutual funds more than accounted for the contemporaneous and future aggregate demand. expansion in this aggregate over 1990. M3 growth However, a portion of the credit flows no has picked up this year, but so far it has reflected longer being intermediated by depositories has the substitution by some depositories of large been readily replaced by alternative suppliers. In time deposits for non-M3 funding sources rather particular, markets for securities backed by than a renewed expansion of their credit. mortgages and consumer loans have allowed Although credit outstanding at depositories demands for these types of credit to be met with contracted last year, credit flows at other interlittle or no increase in costs to the ultimate mediaries and in the open market were better borrowers. And some businesses with relatively maintained. Some borrowers undoubtedly felt high credit ratings have had little difficulty the effects of tightening lending terms, but noneswitching from banks to commercial paper mar- theless the debt of domestic, nonfederal sectors kets and other sources of short-term funding. rose 53/4 percent last year. This growth rate, The reduction in funding through retail deposits though considerably lower than in recent years, associated with this type of shift in credit flows was well in excess of the percentage increase in would not signal a weakness in current or future nominal income. Growth of federal debt by conspending. Some of the surprising weakness in M2 trast surged to 11 percent, of which more than 2 growth has been reflected simply in a higher percentage points represented federal funding of velocity than otherwise, rather than having been RTC activities. Buoyed by federal government indicative of restraint on spending. M2 velocity borrowing, the total debt of domestic nonfinanlast year did not exhibit the decline that would be cial sectors grew 7 percent, the midpoint of the expected with the drop in short-term market FOMC's monitoring range for the aggregate. interest rates in late 1989 and 1990. But with not all of the weakness in M2 likely to be offset by a lasting shift in velocity, the behav- ECONOMIC PROSPECTS IN 1991 AND ior of this aggregate seemed increasingly to signal MONETARY POLICY PLANS AND a weaker path for the economy than was consis- OBJECTIVES tent with the Committee's intentions. Our policy easings over recent months were keyed partly to These economic, financial, and monetary condireinvigorating growth of M2 to a rate more likely tions form the starting point for the Federal to be consistent with satisfactory economic per- Reserve's view of economic prospects and plans formance. If history is any guide, the policy- for monetary policy in 1991. An important aspect induced declines in interest rates on market of the outlook is the unusually high degree of instruments relative to returns on M2 balances uncertainty about how these conditions will will generate the desired speedup in M2 growth; evolve, in the face of the Gulf war and financial indeed, we have begun to see some evidence of strains. Another aspect is the recognition that that in recent weeks, though it is still too early to there may be substantial lags between changes in be very confident that a new, more robust growth financial conditions—notably, the decline in intrend has been established. terest rates and the depreciation of the dollar in Restrained growth of M3 last year was ex- recent months—and the response of spending. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

244 Federal Reserve Bulletin • April 1991 The assessment of the FOMC, as captured by the mestic purchasing power. With most businesses central tendency of the individual projections of having kept their inventories lean, the antici- Board members and Reserve Bank presidents, is pated pickup in aggregate demand should show that the odds favor a moderate upturn in activity through relatively quickly in rising production. in coming quarters. Real GNP for the year as a The 1991 ranges for money and debt growth whole is anticipated to grow in the area of 3A to were selected by the Federal Open Market Com- 1 Vi percent. Unemployment is likely to rise fur- mittee to promote sustainable economic recovther before the recovery takes hold, and conse- ery, consistent with progress over time toward quently the expectation is that the jobless rate price stability. In keeping with a long-term disinwill be somewhere between 6V2 and 7 percent at flationary path, the FOMC ratified the proviyear-end. The lower oil prices, if they persist, sional ranges set last July, which embody a will help damp overall inflation, as will slack in reduction of Vi percentage point in the M2 range labor and capital resources. Most of us believe compared with the limits for 1990. The midpoint that consumer prices will rise 3!/4 to 4 percent of the 2Vi to 6V2 percent range for M2 growth this year—the best performance in several years. matches the midpoint of the central tendency of The forces currently at work in restraining the projections by the governors and presidents spending can be readily identified. Consumer and for nominal GNP growth. The recent sizable business confidence still looks to be quite de- declines in short-term market rates normally pressed, evidently because of the high degree of would be expected to elevate the growth of M2 uncertainty, as well as the weak economy. More- relative to that of nominal GNP. However, the over, problems in many parts of the real estate FOMC anticipates that, as an offset, the ongoing sector are not going to be resolved soon. In restructuring of the thrift industry, combined particular, the large stock of vacant commercial with continued hesitancy of many banks to exproperties is virtually certain to limit activity in pand their assets, will again create an environthat sector for some time. It also will take a while ment that restrains M2 growth relative to nomito correct the associated financial difficulties nal GNP expansion and buoys M2 velocity. An facing many lenders, who are likely to remain outcome this year involving little change in M2 quite conservative in making new loans. Finally, velocity would be quite similar to last year's secondary effects on aggregate demand of the experience. recent decline in our economy's output and real The range of 1 to 5 percent for M3 growth this income are now in the process of running their year is the same as the sharply reduced range for course. last year. It again is lower than the bounds for M2 Fortunately, several stimulative forces are in growth because M3 is likely to continue to be motion that enhance the chances of economic more depressed than M2 by restructuring of the recovery. Monetary policy easings have brought thrift industry and restrained growth in bank about a significant drop in short-term interest credit. The annual monitoring range for debt, rates. The decline started more than a year however, has been reduced Vi percentage point before the business cycle peak, a pattern unique relative to last year's specification, to AV2 to %Vi in postwar experience and one which should help percent, in line with the sustained deceleration of cushion the current recession. Moreover, short- this aggregate in recent years. term rates have declined substantially further in recent months. Long-term interest rates also have come down appreciably; reduced mortgage RISKS TO THE ECONOMIC OUTLOOK rates already have improved the affordability of housing and thus should help to revive housing These money and debt ranges are wide enough to sales and starts. The enhanced international afford scope for policy reactions should the econcompetitiveness of our industries augers well for omy or its relationship to these financial aggrethe net export component of GNP. Furthermore, gates diverge from FOMC expectations. Indeed, the fall in oil prices, which was especially marked the individual forecasts of Board members and in mid-January, has restored considerable do- Reserve Bank presidents for the economy cover Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 245 a relatively wide range. This divergence of opin- around, the expansion could become fairly roion has its roots in the major uncertainties facing bust, sparked by a return of consumer and busiall forecasters today. Economic forecasters typ- ness confidence and fueled by increasing availically have had great difficulty in projecting bus- ability of credit. iness cycle turning points, that is, judging when the relative strength of contending economic forces of contraction versus expansion will re- REGULATORY INITIATIVES verse. Moreover, the current outlook is unusually clouded, in part by uncertainties about the Monetary policy will continue to be conducted to war and its effects. The Federal Reserve will foster attainment of important macroeconomic need to remain alert to possible contingencies objectives. In so doing, we will need to remain and will have to continue to respond flexibly to mindful of any impediments to the process of information about evolving trends. credit intermediation. But monetary policy can- Monetary policy thus will depend on how not resolve market imperfections in which credit trends in economic activity and inflation actually for some financially sound projects is more exunfold. Downside risks in the economic outlook pensive or less available than might otherwise are obviously there and not difficult to identify. seem warranted. Structural problems involving For example, an extended war with Iraq clearly imperfections in credit and capital markets recould carry some risk of further undercutting quire structural solutions. To the extent that public confidence and spending. Additional re- current banking regulations are impeding the straint on credit availability at depositories or efficient functioning of these markets, a more increased public concern about the health of the promising approach would lie along the path of banking system would be negative factors as revising those regulations. I would like to offer well, and could show up initially as continued several thoughts along these lines, some of which subpar money growth. are in only the formative stages. The worry has been expressed that, under We already have taken the step, as noted, of current conditions of restrained willingness of reducing reserve requirements on nontransaction depository institutions to extend credit, mone- accounts at banks and thrift institutions so as to tary policy easing moves may have only a mini- eliminate the reserve tax on lending financed mal impact on lending and hence on overall through these sources. This action lowered nonspending. I believe this risk is exaggerated. Our interest-bearing required reserve balances at easings and reserve requirement action have Federal Reserve Banks by some $11^2 billion. lowered bank funding costs appreciably. Some of The Federal Reserve Board also has the authorthis decline has been passed through to borrow- ity to reduce the required reserve ratio on transers in the form of a lower prime rate; even with action deposits from its current 12 percent to as this reduction, funding costs have fallen relative low as 8 percent. However, unusual volatility in to loan rates, and with higher profit, potential the federal funds rate appeared in January and banks should be more inclined to extend credit. early February, as required reserve balances Moreover, monetary policy stimulus works moved to a seasonal low point. This experience through other channels as well. Some potential suggests that reserve balances had fallen so far borrowers will be encouraged by lower market that many depository institutions were encouninterest rates to undertake additional expendi- tering difficulties in managing their reserve baltures financed, either directly or indirectly, by ances to meet day-to-day clearing needs. Subseissuance of securities. Spending effects also can quently, volatility in the federal funds rate has appear through routes involving price responses diminished, as required reserve balances have in equity and foreign exchange markets. Finally, begun to move above their seasonal lows, and as the anticipated economic recovery itself will help institutions have enlarged their clearing balallay problems of credit availability at, and public ances. These developments should continue for a trust in, depository institutions. Indeed, there is time. Even so, the experience early this year some possibility that once the economy turns suggests caution in considering further reduc- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

246 Federal Reserve Bulletin • April 1991 tions in required reserve ratios, at least for a efforts is to contribute to a climate in which while. We shall, however, continue to assess this banks make loans to creditworthy borrowers situation. and work constructively with borrowers expe- The recent episode of more volatile funds riencing financial difficulties, consistent with trading also has underscored the increased re- safe and sound banking practices. For example, luctance depositories have exhibited in recent the agencies are studying steps to clarify that years in availing themselves of short-term ad- the supervisory evaluation of real estate collatjustment credit at the discount window. The eral is to be based, not solely upon liquidation reluctance has stemmed from fears of being prices, but upon the ability of a property to identified as having more fundamental funding generate cash flow, given reasonable projecproblems. Because of depository reluctance, tions of rents, expenses, and rates of occupancy the discount window in recent years has been a over time. We need a balanced evaluation proless effective safety valve in relieving transitory cess that endeavors to reflect the long-term pressures in the reserves and funds markets. value of an illiquid asset, rather than the exag- Tapping the window for adjustment credit, gerated appraisals that have been evident in when alternative sources of funds temporarily both the upside and the downside of the real are not available on reasonable terms from the estate cycle in recent years. usual sources, is not indicative of longer-term The supervisory agencies also are seeking to stresses at borrowing institutions. Despite bank encourage banking institutions to provide addireluctance, borrowing has been somewhat tional public disclosure on their nonperforming higher on occasion this year as banks were in assets. Under present circumstances, as best we the process of adapting to the lower reserve can judge, the market tends to suspect the worst. requirements. We would not be surprised to see Additional disclosure would supplement data on somewhat higher adjustment borrowing persist. the level of nonperforming loans with informa- The Federal Reserve has no desire to circum- tion on the amount of such loans that are in fact scribe the legitimate use of the discount win- generating substantial cash income. Other similar dow, and market participants should not inter- steps are under consideration. pret such use as indicating underlying problems In general, we have emphasized our view that for the institutions involved. prudent lending standards and effective and Another regulatory area in which possible timely supervision should not inhibit banking steps are being considered pertains to the guide- organizations from playing an active role in filines used in the supervisory process. The Fed- nancing the needs of sound, creditworthy boreral Reserve is working with the other bank rowers. Such an approach can contribute to the supervisory and regulatory agencies to ensure efficient functioning of credit markets and that bank examination standards are prudent thereby complement monetary policy in promotand fair and do not artificially encourage or ing the attainment of the nation's overall ecodiscourage credit extension. The intent of these nomic objectives. • Chairman Greenspan presented identical testimony before the Subcommittee on Domestic Monetary Policy of the House Committee on Banking, Finance and Urban Affairs, February 21, 1991. Statement by John P. LaWare, Member, Board Affairs, U.S. House of Representatives, Februof Governors of the Federal Reserve System, ary 28, 1991. before the Subcommittee on Financial Institutions Supervision, Regulation and Insurance of It is my pleasure to appear before this subcomthe Committee on Banking, Finance and Urban mittee with such a distinguished panel to discuss Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 247 H.R. 192, the proposed "Financial Industry Re- organizations to compete by expanding the range form and Capital Enforcement Act." Financial of their permissible activities only increases the industry reform is one of the most pressing and need to avoid extending the safety net guarantees important issues facing the Congress and the to whatever additional risks may be present in nation. The Federal Reserve Board, like this these new businesses. subcommittee, believes that this topic should be With these concerns in mind, the Federal placed high on the congressional agenda. Reserve Board supports the objective of H.R. H.R. 192 highlights two of the basic problems 192 of expanding bank activities and permitting that need to be addressed in reforming the finan- affiliations of banking and other financial firms. cial services industry. First, institutional devel- This reform directly addresses the first problem: opments and technological change have altered the need for banking organizations to modernize the competitive environment and made obsolete their delivery systems. But the defense of the the statutory and regulatory framework in which safety net is not addressed as fully as we would banks currently operate. Competition in banking like in the bill. We are concerned that certain has become more intense as a result of the provisions of the bill spread the safety net under technological revolution in information transmis- a wider variety of risks and thereby increase the sion and processing. These innovations have led exposure of the insurance fund. to an increased volume of transactions made To protect the safety net, H.R. 192 focuses on directly between lenders and borrowers, fostered the regulation of the bank subsidiaries of deposnew institutions offering banklike claims and itory institution holding companies, supplegranting banklike credit, and permitted old bank- mented by an "early intervention" requirement ing rivals to become more banklike as well. In that relies on the parent maintaining the capital of this environment, outdated laws increasingly are the bank subsidiary. Failure of the parent to hindering the ability of many banks to service maintain the bank's capital would result in divitheir customers' needs. But most significantly, dend restrictions on the bank and ultimately American consumers are being denied the bene- divestiture of undercapitalized banks or imposifits of a more efficient financial system. These tion of a conservatorship. Such an approach is developments all call for expanding the activities generally consistent with the Board's proposals that banking organizations are authorized to de- last summer for a policy of prompt corrective liver and—-just as important—relieving them action. from the costly prohibition of interstate branch- The Board is concerned, however, that other ing. features of the bill may not provide sufficient The second problem is the potential liability of supervisory authority to safeguard the insurance the taxpayer for losses that banks may incur. funds. The bill does not provide for an umbrella Over the years, moral hazard has created a threat supervisor for the parent and its nonbank subsidto the deposit insurance system, as expanding iaries, nor any control over the capital of these deposit insurance guarantees have greatly re- units. It will, I am sure, come as no surprise to duced the market discipline imposed by deposi- you that the Board believes that a federal supertors on bank risktaking. Consequently, some visor should have the overall authority to look at insured depository institutions have been en- the whole enterprise that contains an insured couraged to take excessive risks and to operate deposit-taking unit. Our experience has reinwith eroded capital ratios that may not provide forced our view regarding the complexities of sufficient insulation for the insurance fund. Trag- intercompany relationships within a holding ically, these developments have exposed Amer- company and the conviction that fire walls alone ican taxpayers to liability for the insurance guar- cannot insulate a bank from the problems of its antees in the thrift industry. Thus, we need to parent or affiliates. We have seen that pressures develop legislation to limit the size of potential on the parent holding company or nonbanking taxpayer exposure for deposit insurance in the affiliates may well affect the costs and availability commercial banking industry. The pressing need of funding of affiliate banks. to enhance the ability of commercial banking While H.R. 192 looks to the parent to maintain Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

248 Federal Reserve Bulletin • April 1991 the capital of its bank affiliates, it does not give these activities. Experience has demonstrated the supervisor the examination and reporting that the market expects insured banks to support tools to closely monitor or supervise the financial their subsidiaries. Even when an insured bank condition or operations of the parent. In addi- wishes to assert corporate independence from its tion, no realistic and timely means are provided subsidiaries, all losses experienced by these units to ensure that the activities or financial condition are reflected directly in the income statements of the organization as a whole does not pose and balance sheets of the parent bank and reduce additional risk to the insured deposit taker and the bank's capital. Thus, unlike holding company through it, to the financial system or the safety affiliates, a subsidiary of a bank may directly net. Even if the potential for trouble is detected, reduce the bank's ability to use its own capital as the agencies would have no specific cease-and- a buffer protecting the bank's depositors and the desist authority over the holding company and its insurance fund. nonbanking affiliates. We are also concerned that the proposed It is true that the bill authorizes the bank amendments to sections 23A and 23B of the regulator to require divestiture of the depository Federal Reserve Act could increase the bank's institution when it is being endangered by the exposure to its affiliates. The bill fragments the activities or condition of an affiliate, but corpo- existing unified rulemaking authority under secrate structures are often complicated, and with- tion 23, giving each bank regulator the authority out regular supervisory oversight, discovery may to adopt its own rules and interpretations and to be difficult. More important, the possibility of exempt institutions or transactions from the limadministrative and judicial challenges, the one- its of section 23A and section 23B. In addition, year divestiture period, and the difficulties of the bill amends existing law to allow depository proof under the proposed statutory standard institutions to lend to customers of affiliates to eliminate the ability of the bank supervisor to use purchase the affiliates' products and services this divestiture provision in a timely fashion to without regard to the quantitative and collateral protect the bank and the insurance fund. limits of section 23A—a troublesome exemption Moreover, it is not clear whether the holding since, under the bill, commercial firms may own company could avoid the obligation imposed by or be affiliates of banks. H.R. 192 to maintain the capital of subsidiary I should note that H.R. 192 places no limits on depository institutions. For example, could the who may own a depository institution holding holding company simply turn over a troubled company or what business the bank affiliates may bank to a conservator, passing the losses to the conduct, or on cross-marketing of financial or deposit insurance funds and potentially to the commercial products and services. This mix of taxpayer? Any reliance on the holding company banking and commerce, which would raise serito recapitalize its subsidiary banks would be ous issues in any context, is further complicated greatly undermined if the holding company re- by the weakening of 23A and 23B fire walls and tained that option. the absence of umbrella supervision. Before the H.R. 192 wisely recognizes that certain risky Congress takes what will amount to an irreversnonbanking activities, such as real estate invest- ible step, the Board believes that the issue of ment and development, should not be conducted commerce and banking should be carefully studdirectly by a federally insured depository institu- ied and that if the Congress decides to authorize tion. The Board is concerned, however, that the commercial connections, it should be done in a bill does not adequately address the equally carefully supervised and phased-in manner with important issue of the conduct of such activities adequate protection of the public interest. through subsidiaries of state-chartered institu- The Board strongly objects to that provision of tions (when permitted by state law) and the H.R. 192 that apparently would limit the Federal concomitant exposure of the safety net. In our Reserve's ability to control its risk exposure view, banks should not use federally insured from access by depository institutions to the funds to engage directly in such risky activities or Federal Reserve's payment services. This provito acquire or finance subsidiaries engaged in sion would deny to the Federal Reserve the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 249 discretion that it and all lenders have to make activities for banking organizations that is the credit judgments based on all relevant factors. centerpiece of H.R. 192, and applaud its contri- Further, in an era of electronic payments when bution to the financial reform debate. This objectrillions of dollars change hands daily, the bill tive, however, needs to be accompanied by safewould prevent the Federal Reserve from acting guards to address the risks to the safety net of promptly to deal with troubled institutions ac- new activities and to limit the transfer of the cessing daylight credit from the Federal Reserve. safety net subsidy to noninsured entities. We These limitations could result in substantial would also hope that any banking reform legislalosses to the Federal Reserve that could be tion would promptly authorize interstate branchreflected in reduced Federal Reserve payments ing. Revising these outdated limitations would be to the Treasury. extremely helpful in reducing both bank costs In sum, we support the principle of wider and their risk profiles. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

250 Announcements MEETING OF CONSUMER ADVISORY NEW PUBLICATION: Consumer Compliance COUNCIL Handbook The Federal Reserve Board announced that its The Federal Reserve Board announced on Feb- Consumer Advisory Council met on March 14. ruary 27, 1991, the publication of a new Con- The Council's function is to advise the Board on sumer Compliance Handbook designed to help the exercise of its responsibilities under the Con- banks comply with the consumer protection laws sumer Credit Protection Act and on other mat- and regulations. The Handbook provides easyters on which the Board seeks its advice. to-read summaries of all the various consumer laws and regulations administered by the Board, sets forth the examination procedures used by REGULATION CC: FINAL AMENDMENTS the Federal Reserve System, and includes an examiner's checklist. Some of the laws and reg- The Federal Reserve Board adopted on February ulations included in the Handbook are the Fair 20, 1991, final amendments to Regulation CC Housing Act, the Home Mortgage Disclosure (Availability of Funds and Collection of Checks) Act, the Community Reinvestment Act, Truth in to conform the regulation to a recent amendment Lending Act, Consumer Leasing Act, Electronic to the Expedited Funds Availability Act. These Fund Transfer Act, Expedited Funds Availabilamendments to Regulation CC have a retroactive ity Act, Unfair or Deceptive Practices Act, and effective date of September 1, 1990. Fair Credit Reporting Act. The Amendment to the Expedited Funds Copies of the Handbook are available from Availability Act extends the availability sched- Publications Services, Board of Governors of the ules for deposits at nonproprietary automated Federal Reserve System, Washington, D.C. teller machines for a two-year period. 20551. A check for $20 should accompany each order. POSTPONEMENT OF NEW ACH PARTICIPATION FEE GOVERNOR SEGER'S RESIGNATION: EFFECTIVE DATE The Federal Reserve Board on February 13, 1991, postponed the implementation of a new $10 On March 11, 1991, Governor Martha R. Seger monthly participation fee for automated clearing- announced that her resignation as a member of houses (ACHs) that had previously been sched- the Board of Governors would be effective at the uled to take effect on April 1, 1991. The Board close of business on that day. also has modified the manner in which the fee will be applied during 1991. CHANGES IN THE STATISTICAL APPENDIX The new participation fee will become effec- TO THE BULLETIN tive on July 1, 1991, and during the remainder of 1991 will apply only with respect to participant Two tables in the statistical appendix to the Bulrecords that have commercial ACH volume in a letin, table 1.28, "Assets and Liabilities of Large given month. These actions are being taken to Weekly Reporting Commercial Banks in New address concerns raised by some institutions that York City," and table 1.31, "Gross Demand they would not be able to act in a sufficiently Deposits of Individuals, Partnerships, and Corpotimely manner to avoid paying multiple partici- rations," are being discontinued. Table 1.31 is pation fees beginning in April 1991. being discontinued as of this issue. Table 1.28 will Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

251 no longer be carried in the Bulletin starting with (MMDAs), other savings deposits, small time the May 1991 issue. Historical data for the series deposits, and large time deposits. Under the new in table 1.28 are available on request from the procedure, the commercial bank and thrift de- Banking and Money Market Statistics Section, posit components of these aggregates, with the Division of Monetary Affairs, mail stop 81, Board exception of OCDs, have each been adjusted of Governors of the Federal Reserve System, with seasonal factors computed from data aggre- Washington, D.C. 20551. gated over banks and thrift institutions. With OCDs, when seasonal patterns show more differ- REVISIONS TO MONEY STOCK DATA ences between banks and thrift institutions, commercial bank data are seasonally adjusted di- Measures of the money stock were revised in rectly, and seasonally adjusted OCDs at thrift February of this year as a result of the annual institutions are computed as the difference bebenchmark and seasonal factor review. Data in tween the seasonally adjusted total OCDs and tables 1.10 and 1.21 in the statistical appendix to seasonally adjusted bank OCD series. The previthe Bulletin reflect these changes beginning with ous procedure had been to derive seasonal facthis issue. tors from each deposit component at banks and Data for the monetary aggregates were bench- thrift institutions separately. This procedure remarked using call reports through June 1990 and mains the one used for computing seasonal facother sources. Estimates of deposits at institu- tors applied to deposit data up to December 1989. tions that do not file reports were revised from More detail on the revisions is available in the 1984 to 1990. Board's H.6 statistical release, "Money Stock, Seasonal factors for the monetary aggregates Liquid Assets, and Debt Measures," dated Febcontinued to be estimated by the X-11-ARIMA ruary 7, 1991. Historical data are available from procedure. Beginning with January 1990, a new the Money and Reserves Projections Section, procedure is being applied to the following mon- Division of Monetary Affairs, mail stop 72, etary aggregates—other checkable deposits Board of Governors of the Federal Reserve Sys- (OCDs), money market deposit accounts tem, Washington, D.C. 20551. 1. Monthly seasonal factors used to construct Ml, M2, and M3, January 1990-March 1992 NNoonnbbaannkk Other checkable deposits1 Nontransactions components YYeeaarr aanndd mmoonntthh CCuurrrreennccyy ttrraavveelleerrss'' DDeemmaanndd cchheecckkss ddeeppoossiittss Total At banks In M2 In M3 only 1990-January .9931 .9351 1.0187 1.0133 1.0213 1.0016 .9946 February .9902 .9517 .9707 .9930 1.0004 1.0014 .9973 March .9946 .9588 .9741 1.0011 1.0055 1.0027 1.0006 April .9971 .9526 1.0069 1.0322 1.0333 1.0011 .9940 May .9995 .9708 .9748 .9900 .9865 .9961 1.0020 June 1.0050 1.0373 .9958 .9964 .9925 .9977 1.0020 July 1.0068 1.1108 1.0061 .9932 .9878 1.0004 .9988 August 1.0039 1.1198 .9957 .9907 .9874 1.0011 1.0053 September .9978 1.0680 .9965 .9934 .9914 .9993 1.0036 October .9952 1.0083 1.0032 .9884 .9857 1.0004 .9997 November 1.0032 .9561 1.0119 .9968 .9948 1.0003 1.0043 December 1.0131 .9300 1.0469 1.0110 1.0130 .9981 .9975 1991-January .9929 .9366 1.0177 1.0136 1.0216 1.0015 .9948 February .9903 .9521 .9707 .9932 1.0003 1.0015 .9967 March .9956 .9584 .9745 1.0018 1.0059 1.0028 1.0001 April .9977 .9526 1.0066 1.0325 1.0335 1.0011 .9944 May 1.0022 .9706 .9743 .9894 .9861 .9959 1.0023 June 1.0060 1.0364 .9950 .9962 .9926 .9975 1.0020 July 1.0075 1.1094 1.0061 .9929 .9878 1.0004 .9994 August 1.0046 1.1200 .9958 .9905 .9873 1.0011 1.0058 September .9977 1.0679 .9968 .9934 .9914 .9992 1.0036 October .9952 1.0088 1.0035 .9882 .9855 1.0004 .9995 November 1.0038 .9569 1.0123 .9969 .9948 1.0003 1.0039 December 1.0121 .9308 1.0475 1.0111 1.0130 .9981 .9973 1992-January .9930 .9368 1.0170 1.0138 1.0217 1.0015 .9952 February .9902 .9521 .9707 .9933 1.0003 1.0015 .9966 March .9948 .9597 .9747 1.0020 1.0061 1.0029 .9998 1. Seasonally adjusted other checkable deposits at thrift institutions are de- adjusted, and seaonally adjusted other checkable deposits at commercial banks, rived as the difference between total other checkable deposits, seasonally Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

252 Federal Reserve Bulletin • April 1991 2. Monthly seasonal factors for selected components of the monetary aggregates, January 1990-March 1992 Deposits' Money market mutual funds YYeeaarr aanndd mmoonntthh Small Large Money market Savings denomination denomination In M2 In M3 deposit accounts time time -January .9922 1.0069 1.0011 .9960 1.0002 1.0335 Februaiy .9910 1.0032 1.0016 .9970 1.0111 1.0353 March .9993 1.0052 .9998 .99% 1.0177 1.0154 April 1.0030 1.0007 1.0000 .9944 1.0120 .9912 May 1.0028 .9905 .9990 .9989 .9891 .9924 June 1.0069 .9941 1.0002 .9987 .9840 .9831 July 1.0103 .9928 1.0029 .9965 .9871 .9859 August 1.0030 .9968 1.0016 1.0022 .9965 .9929 September .9985 .9972 .9995 1.0046 .9999 .9759 October 1.0025 .9978 .9998 1.0063 .9986 .9795 November .9984 1.0060 .9983 1.0066 1.0044 1.0051 December .9916 1.0086 .9966 1.0000 1.0004 1.0099 —January .9925 1.0076 1.0007 .9959 1.0007 1.0361 February .9916 1.0039 1.0010 .9964 1.0115 1.0343 March .9999 1.0056 .9993 .9988 1.0178 1.0133 April 1.0030 1.0006 1.0001 .9944 1.0120 .9901 May 1.0024 .9900 .9996 .9989 .9875 .9928 June 1.0065 .9935 1.0006 .9988 .9827 .9838 July 1.0099 .9920 1.0031 .9969 .9865 .9852 August 1.0028 .9965 1.0019 1.0025 .9966 .9933 September .9984 .9970 .9997 1.0046 1.0001 .9769 October 1.0024 .9976 .9998 1.0063 .9994 .9803 November .9987 1.0065 .9979 1.0067 1.0051 1.0033 December .9918 1.0090 .9965 .9998 1.0007 1.0110 —January .9927 1.0080 1.0007 .9960 1.0007 1.0374 February .9919 1.0042 1.0006 .9962 1.0116 1.0328 March 1.0000 1.0057 .9992 .9984 1.0175 1.0119 1. These seasonal factors are applied to deposits data at both commercial banks and thrift institutions. 3. Weekly seasonal factors used to construct Ml, M2 and M3, December 1990-March 1992 NNoonnbbaannkk Other checkable deposits' Nontransactions components WWeeeekk eennddiinngg CCuurrrreennccyy ttrraavveelleerrss'' DDeemmaanndd cchheecckkss ddeeppoossiittss Total At banks In M2 In M3 only 1990-December 3 .9998 .9311 1.0081 .9984 .9972 .9996 .9991 10 1.0139 .9306 1.0293 1.0221 1.0210 1.0005 .9990 17 1.0105 .9300 1.0401 1.0096 1.0103 .9995 .9942 24 1.0209 .9295 1.0453 1.0028 1.0086 .9960 .9974 31 1.0096 .9289 1.0852 1.0070 1.0114 .9953 .9989 1991-January 7 1.0088 .9306 1.0807 1.0525 1.0574 1.0009 .9811 14 1.0005 .9338 1.0383 1.0345 1.0439 1.0034 1.0003 21 .9900 .9371 1.0050 1.0099 1.0191 1.0018 1.0009 28 .9807 .9403 .9667 .9751 .9825 1.0003 .9960 February 4 .9863 .9437 .9864 .9971 1.0057 1.0006 .9966 11 .9952 .9481 .9722 1.0055 1.0120 1.0012 1.0002 18 .9939 .9524 .9669 .9882 .9989 1.0014 .9965 25 .9840 .9567 .9579 .9802 .9852 1.0019 .9936 March 4 .9903 .9602 .9834 1.0043 1.0071 1.0023 .9966 11 1.0007 .9592 .9801 1.0133 1.0174 1.0029 .9962 18 .9968 .9582 .9778 1.0001 1.0040 1.0031 .9993 25 . . .9920 .9572 .9555 .9858 .9934 1.0020 1.0047 For notes, see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 253 3. Weekly seasonal factors used to construct Ml, M2 and M3, December 1990-March 1992—Continued NNoonnbbaannkk Other checkable deposits' Nontransactions components WWeeeekk eennddiinngg CCuurrrreennccyy ttrraavveelleerrss'' DDeemmaanndd cchheecckkss ddeeppoossiittss Total At banks In M2 In M3 only 11999911 --AApprriill 11 .9898 .9562 .9814 .9991 1.0007 1.0040 1.0028 88 1.0071 .9547 1.0136 1.0482 1.0439 1.0053 .9979 15 1.0016 .9529 1.0228 1.0499 1.0496 1.0034 .9931 22 .9964 .9512 1.0088 1.0412 1.0494 .9988 .9883 29 .9879 .9494 .9825 .9960 .9984 .9975 .9964 May 6 1.0034 .9526 .9802 1.0116 1.0017 .9954 .9996 13 1.0055 .9622 .9764 .9959 .9921 .9955 1.0028 20 1.0012 .9718 .9790 .9855 .9827 .9959 1.0020 27 1.0007 .9814 .9549 .9672 .9710 .9954 1.0046 June 3 1.0005 .9910 .9972 1.0010 .9938 .9980 1.0017 10 1.0134 1.0119 1.0027 1.0206 1.0128 .9978 1.0039 17 1.0069 1.0326 .9976 1.0045 1.0016 .9976 1.0037 24 1.0015 1.0532 .9728 .9739 .9746 .9967 1.0024 JJuullyy 11 1.0010 1.0735 1.0115 .9772 .9751 .9979 .9977 88 1.0214 1.0890 1.0374 1.0212 1.0115 .9991 .9977 15 1.0113 1.1026 1.0194 1.0021 .9959 1.0015 .9975 22 1.0057 1.1161 .9913 .9835 .9799 1.0009 1.0002 29 .9970 1.1297 .9715 .9667 .9660 1.0004 1.0017 August 5 1.0074 1.1370 1.0016 1.0040 .9975 1.0007 1.0024 12 1.0117 1.1287 1.0061 1.0014 .9965 1.0019 1.0052 19 1.0052 1.1204 1.0069 .9875 .9837 1.0015 1.0036 26 .9966 1.1121 .9711 .9707 .9723 1.0008 1.0091 September 2 .9984 1.1039 .9896 .9888 .9853 1.0005 1.0084 9 1.0081 1.0891 1.0188 1.0267 1.0197 1.0006 1.0040 16 1.0001 1.0733 1.0097 1.0082 1.0063 .9997 1.0056 23 .9936 1.0576 .9767 .9762 .9780 .9974 1.0016 30 .9870 1.0419 .9825 .9607 .9616 .9989 1.0017 October 7 1.0028 1.0287 1.0139 1.0079 1.0003 1.0012 .9988 14 1.0009 1.0173 1.0205 1.0002 .9961 1.0009 1.0018 21 .9951 1.0058 .9995 .9862 .9844 .9995 .9952 28 .9878 .9943 .9796 .9646 .9681 .9998 1.0007 November 4 .9953 .9826 1.0170 .9982 .9925 1.0005 1.0030 11 1.0085 .9702 1.0152 1.0083 1.0023 1.0003 1.0046 18 1.0035 .9578 1.0233 .9987 .9956 1.0010 1.0004 25 1.0003 .9456 .9981 .9783 .9823 .9999 1.0042 December 2 1.0042 .9335 1.0138 .9937 .9930 .9999 1.0080 9 1.0117 .9312 1.0287 1.0260 1.0218 1.0008 .9959 16 1.0095 .9307 1.0380 1.0091 1.0106 .9992 .9953 23 1.0183 .9301 1.0419 1.0052 1.0107 .9966 .9958 30 1.0123 .9295 1.0712 1.0023 1.0086 .9952 1.0002 1992-January 6 1.0065 .9305 1.1107 1.0536 1.0535 1.0009 .9898 13 .9986 .9337 1.0379 1.0402 1.0475 1.0037 .9950 20 .9919 .9369 1.0009 1.0125 1.0238 1.0014 .9978 27 .9827 .9400 .9613 .9729 .9883 1.0006 .9975 February 3 .9842 .9432 .9782 .9896 .9931 1.0002 .9948 10 .9963 .9473 .9773 1.0107 1.0144 1.0007 .9969 17 .9950 .9514 .9713 .9907 .9998 1.0014 .9961 24 .9852 .9555 .9622 .9825 .9902 1.0023 .9951 March 2 .9836 .9595 .9704 .9863 .9960 1.0026 1.0000 9 1.0004 .9592 .9865 1.0192 1.0264 1.0028 .9994 16 .9965 .9582 .9785 1.0031 1.0077 1.0030 .9987 23 .9938 .9572 .9600 .9924 .9956 1.0019 1.0000 30 .9903 .9563 .9618 .9897 .9907 1.0036 1.0014 April 6 1.0067 .9550 1.0229 1.0470 1.0352 1.0057 .9963 1. Seasonally adjusted other checkable deposits at thrift institutions are adjusted, and seasonally adjusted other checkable deposits at commercial derived as the difference between total other checkable deposits, seasonally banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

254 Federal Reserve Bulletin • April 1991 4. Weekly seasonal factors for selected components of the monetary aggregates, December 1990-March 1992 Deposits' Money market mutual funds Small Large Week ending Savings Money market denomination denomination In M2 In M3 deposit accounts time time 1990-December 3 .9960 1.0082 .9975 1.0024 1.0037 1.0136 10 .9965 1.0112 .9969 1.0030 1.0042 1.0038 17 .9919 1.0102 .9959 .9995 1.0025 1.0105 24 .9865 1.0060 .9956 .9983 1.0014 1.0113 31 .9887 1.0062 .9976 .9984 .9920 1.0123 1991-January 7 .9978 1.0125 1.0003 .9969 .9820 1.0008 14 .9947 1.0119 1.0009 .9988 1.0023 1.0434 21 .9912 1.0071 1.0007 .9955 1.0077 1.0501 28 .9875 1.0013 1.0007 .9934 1.0087 1.0482 February 4 .9898 1.0022 1.0014 .9933 1.0059 1.0399 11 .9928 1.0044 1.0017 .9977 1.0108 1.0405 18 .9918 1.0043 1.0012 .9971 1.0120 1.0311 25 .9902 1.0036 1.0002 .9965 1.0138 1.0322 March 4 .9936 1.0047 .9997 .9961 1.0140 1.0249 11 .9992 1.0073 .9994 .9987 1.0180 1.0164 18 1.0002 1.0063 .9985 .9981 1.0185 1.0081 25 .9999 1.0042 .9987 1.0002 1.0203 1.0105 April 1 1.0047 1.0049 1.0007 1.0000 1.0164 1.0111 8 1.0113 1.0102 1.0005 .9977 1.0160 .9989 15 1.0066 1.0082 .9999 .9943 1.0193 .9939 22 .9984 .9967 1.0001 .9916 1.0133 .9790 29 .9958 .9884 .9998 .9930 1.0020 .9870 May 6 1.0010 .9875 .9998 .9945 .9897 .9817 13 1.0032 .9897 .9997 .9981 .9883 .9884 20 1.0031 .9904 .99% .9983 .9848 .9899 27 1.0011 .9897 .9993 1.0035 .9887 1.0070 June 3 1.0042 .9935 .9995 1.0001 .9852 .9969 10 1.0090 .9983 1.0000 1.0007 .9842 .9863 17 1.0072 .9964 1.0001 .9992 .9838 .9839 24 1.0039 .9899 1.0003 .9978 .9831 .9857 July 1 1.0069 .9889 1.0026 .9968 .9777 .9723 8 1.0142 .9929 1.0039 .9940 .9759 .9692 15 1.0128 .9933 1.0035 .9960 .9885 .9771 22 1.0095 .9913 1.0029 .9977 .9900 .9952 29 1.0047 .9905 1.0023 .9997 .9916 .9986 August 5 1.0062 .9938 1.0027 .9979 .9905 .9947 12 1.0068 .9969 1.0027 1.0018 .9952 .9964 19 1.0038 .9974 1.0020 1.0022 .9956 .9886 26 .9989 .9962 1.0012 1.0055 1.0014 .9974 September 2 .9976 .9976 1.0009 1.0046 .9990 .9886 9 1.0007 1.0021 1.0003 1.0034 .9963 .9825 16 .9993 1.0007 .9993 1.0039 1.0015 .9773 23 .9964 .9935 .9988 1.0056 1.0035 .9753 30 .9974 .9915 1.0001 1.0055 .9996 .9695 October 7 1.0062 .9956 1.0019 1.0060 .9960 .9664 14 1.0050 .9989 1.0006 1.0064 .9999 .9797 21 1.0022 .9977 .9991 1.0048 .9997 .9812 28 .9977 .9968 .9984 1.0074 1.0011 .9888 November 4 .9992 1.0014 .9984 1.0073 1.0018 .9916 11 1.0013 1.0066 .9985 1.0098 1.0038 .9991 18 .9993 1.0078 .9980 1.0067 1.0033 .9984 25 .9968 1.0068 .9973 1.0064 1.0098 1.0144 For note, see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 255 4. Weekly seasonal factors for selected components of the monetary aggregates, December 1990-March 1992-Continued Deposits' Money market mutual funds Small Large Week ending Savings Money market denomination denomination In M2 In M3 deposit accounts time time 1991-December 2 .9962 1.0082 .9972 1.0022 1.0056 1.0097 9 .9974 1.0115 .9968 1.0013 1.0046 1.0063 16 .9931 1.0111 .9959 .9990 1.0040 1.0119 23 .9878 1.0069 .9955 .9977 1.0016 1.0148 30 .9867 1.0064 .9969 1.0009 .9938 1.0131 11999922——JJaannuuaarryy 6 .9973 1.0121 1.0000 .9979 .9820 .9974 13 .9957 1.0133 1.0010 .9976 .9994 1.0431 20 .9920 1.0080 1.0008 .9961 1.0070 1.0517 27 .9883 1.0026 1.0006 .9944 1.0092 1.0496 FFeebbrruuaarryy 3 .9894 1.0018 1.0011 .9932 1.0051 1.0406 10 .9931 1.0048 1.0013 .9971 1.0101 1.0376 17 .9924 1.0046 1.0009 .9970 1.0129 1.0300 24 .9906 1.0040 1.0001 .9962 1.0134 1.0279 MMaarrcchh 2 .9925 1.0044 .9997 .9957 1.0131 1.0322 9 .9984 1.0073 .9996 .9983 1.0159 1.0167 16 .9999 1.0066 .9988 .9981 1.0173 1.0148 23 1.0000 1.0047 .9984 .9990 1.0188 1.0156 30 1.0023 1.0040 .9996 .9993 1.0194 .9987 April 6 1.0131 1.0094 .9998 .9958 1.0163 .9871 1. These seasonal factors are applied to deposits data at both commercial banks and thrift institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

256 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON DECEMBER 18, 1990 In October and November, retail sales in real terms were below the downward revised Septem- 1. Domestic Policy Directive ber level. Real disposable incomes had been reduced by a decrease in total hours worked and The information reviewed at this meeting sug- by the effects of higher energy prices, and major gested that economic activity had fallen appre- surveys of consumer attitudes in November inciably in recent months. A depressed level of dicated that consumer confidence remained at consumer confidence and a decline in real dis- depressed levels. In October, total private housposable income had contributed to sluggish con- ing starts declined substantially further; almost sumer spending. In response to apparent weak- all of the drop reflected additional weakness in ness in final demands, businesses had reduced starts of multifamily units. Sales of both new and production and employment; these cutbacks existing houses fell in September and October. were most evident in the motor vehicle and Shipments of nondefense capital goods edged construction sectors, but a broad range of other lower in October after changing little on balance industries had been affected to some degree. in previous months. A sizable drop in shipments Consumer inflation had moderated recently, of aircraft and parts more than offset further largely as a result of some softening in oil prices. increases in the office and computing equipment Despite the substantial increases in living costs category. New orders for nondefense capital this year, wage gains appeared to have slowed goods pointed to a considerable softening in somewhat in recent months. business equipment spending in coming months. After a progressive weakening during the first Nonresidential construction activity fell for a three quarters of the year, total nonfarm payroll third straight month, and permits and contracts employment fell sharply further in October and for new construction remained in a downtrend. November. Job losses were widespread across Manufacturing inventories posted a small inindustries in November but were especially pro- crease in October, and the ratio of stocks to sales nounced in manufacturing and construction. In continued to edge down. At the retail level, the service-producing sector, which had gener- non-auto inventories rose moderately after two ated most of the employment gains earlier in the months of little change; the inventory-to-sales year, the health industry was one of the few to ratio remained within the range that had prepost significant increases in jobs. The civilian vailed for an extended period. unemployment rate rose to 5.9 percent in No- Reflecting a sharper rise in the value of imports vember. than in that of exports, the nominal U.S. mer- Industrial output declined markedly for a sec- chandise trade deficit widened in October from ond straight month in November. Production its average rate in the third quarter. After modcutbacks were broadly distributed across indus- erating somewhat in September, non-oil imports tries but were especially pronounced in motor surged in October; the value of oil imports also vehicles and parts, non-auto consumer goods, rose as a sharp increase in prices offset a small and construction supplies. Reflecting the sizable decline in volume. Nonagricultural exports regdecline in manufacturing production, the rate of istered a sizable increase that more than offset a capacity utilization in manufacturing dropped further drop in exports of agricultural products. further below the midyear high. Economic growth in the major foreign industrial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

257 countries was mixed in the third quarter. Growth number of technical adjustments were made to remained strong in Western Germany and ap- assumed levels of adjustment plus seasonal borpeared to have rebounded in France. Some slow- rowing to reflect the declines in seasonal borrowing from the rapid rise early in the year had ing activity that typically occur late in the year. occurred in Japan, while declines in economic Adjustment plus seasonal borrowing fell from activity were recorded in the United Kingdom about $260 million for the reserve maintenance and Canada. Some moderation in consumer price period that ended the day after the November inflation appeared to be in progress for the major meeting to a little over $100 million for the period foreign economies, reflecting the nearly com- completed prior to this meeting. In the early part pleted pass-through to the retail level of the of the intermeeting period, in the context of earlier rise in oil prices. continued cautious reserve management by In November, increases in producer prices of banks and the settlement of the midquarter Treafinished goods moderated from the rapid pace of sury refunding, the federal funds rate averaged previous months; the prices of finished foods near 73/4 percent. Late in the period, after the again advanced sharply, but declines in the slight additional easing of policy and as concerns prices of refined petroleum products damped the about a year-end squeeze on the availability of overall rise in producer prices. Over October and short-term funds abated somewhat, the federal November, producer prices of non-energy, non- funds rate averaged around IV* percent. Other food finished goods increased at about the third- market interest rates also declined on balance quarter rate, which in turn was somewhat below over the intermeeting period, in some cases that in the first half of the year. The pace of substantially, as markets responded to mounting consumer inflation also slowed in November, evidence that the economy was slowing signifimostly as a result of a smaller rise in energy cantly and to the easing of monetary policy. prices. Excluding food and energy items, con- Lower interest rates and optimism over a possisumer prices rose in November at the more ble peaceful resolution of the Persian Gulf situamoderate pace seen in the previous two months. tion contributed to a rise in broad stock market Average hourly earnings of production or nonsu- indexes. pervisory workers were unchanged on balance The easing of concerns about year-end presover October and November; this represented a sures appeared to have been helped by the anconsiderable slowing from the increases re- nouncement by the Board of Governors on Decorded in earlier months of the year. cember 4, 1990, of the elimination of reserve At its meeting on November 13, the Commit- requirements on nonpersonal time deposits and tee adopted a directive that called for a slight net Eurocurrency liabilities. These reserve reimmediate reduction in the degree of pressure on quirements were phased down in two steps, with reserve positions and that also called for giving the second occurring in the reserve maintenance weight to potential developments that might re- period spanning year-end. This action was not quire some slight further easing during the inter- expected to afiFect underlying pressures on remeeting period. The reserve conditions contem- serves or federal funds rates but was intended to plated by the Committee were expected to be help counter the tightening by depository instituconsistent with growth of both M2 and M3 at tions of credit terms for many types of borrowers annual rates of about 1 to 2 percent over the by providing those institutions with added incenperiod from September through December. tive to lend to creditworthy borrowers. Following the meeting, open market opera- In the foreign exchange markets, the dollar tions were directed toward implementing the fluctuated in value over the intermeeting period slight easing of reserve market conditions sought in response to changing perceptions regarding by the Committee. Subsequently, in early De- the Persian Gulf situation, the release of U.S. cember, in light of further indications of a soft- employment data for November, and the further ening economy and continuing weakness in the easing of U.S. monetary policy. On balance over monetary aggregates, another slight easing in the period, the trade-weighted value of the dollar reserve pressures was carried out. In addition, a rose slightly in terms of the other G-10 curren- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

258 Federal Reserve Bulletin • April 1991 cies. The dollar appreciated more against the yen consumer spending and the support provided by and sterling; the recent decreases in oil prices further gains in exports. Subsequently, as busialong with expectations of slowing or negative ness sales and orders improved, production and economic growth had sparked large rallies in business investment outlays were expected to bond markets in Japan and the United Kingdom. pick up. The outlook for inflation remained The dollar increased less against the mark, which clouded by the uncertainties regarding oil prices was generally firm on the basis of continuing but, based on the assumption of a substantial strong economic growth in Western Germany decline in oil prices and some added slack in and heightened market expectations of further resource utilization, the staff projected a slower tightening of German monetary policy. rise in prices and labor costs. M2 was about unchanged over October and In the Committee's discussion of the economic November after growing at a relatively limited situation and outlook, members commented that pace on balance in earlier months of the year, a relatively mild and short recession remained a while M3 declined slightly in both months. The reasonable expectation, but they emphasized the weakness in M2, which persisted despite an risks of a more severe and prolonged contraction earlier decline in opportunity costs, perhaps re- in economic activity. Generally lean business flected very weak expansion of nominal income inventories, favorable conditions for the further in recent months as well as damped credit growth growth of exports, and appreciable declines in oil at depository institutions. From the fourth quar- prices from their recent peaks all promised to ter of 1989 through November, expansion of M2 buoy spending and activity over coming quarwas estimated to be in the lower half of the ters. However, the key to a near-term rebound in Committee's range for the year and M3 near the the economy was a pickup in consumer spendlower end of its range. Expansion of total domes- ing. Even under the assumption that the Persian tic nonfinancial debt appeared to have been near Gulf situation would be more settled and oil the midpoint of its monitoring range. prices lower, restoration of the degree of confi- The staff projection prepared for this meeting dence needed to induce a substantial upturn in pointed to a mild further decline in economic spending was not assured. The financial diffiactivity over the near term and an upturn before culties of many borrowers and financial intermemid-1991. The projection was prepared against diaries, especially banks, could continue to damthe background of persisting uncertainties re- age confidence as well as to constrain further the garding the prospects for a peaceful resolution of availability of credit to many borrowers and the situation in the Persian Gulf region. The staff contribute to additional declines of asset values assumed that there would be no major further in commercial and real estate markets. In gendisruption to world oil supplies and that oil prices eral, the economy and financial markets were would drop appreciably further in the first half of undergoing a process of adjustment to earlier next year. The projection took into account the excesses in leveraging by borrowers and specuconstraints on the supply of credit and an expec- lative increases in asset prices; while the course tation that such constraints would persist to and effects of that adjustment were difficult to some degree through the year ahead. Consumer predict, there clearly had been an increase in the outlays were expected to continue to be damped downside risks to the economy as a result. With in the near term by the erosion of real disposable regard to the outlook for inflation, members saw income associated with a reduction in hours growing indications that a disinflationary process worked and the effects of higher energy prices; in might be getting under way, and some viewed light of weak consumer demands, business recent price and wage developments as consisequipment spending was projected to be sluggish tent with an outlook for faster progress in reducand commercial construction to decline further, ing inflation than they had anticipated some given the oversupply of currently available months ago. space. Economic growth was expected to resume Regional business developments continued to during the first half of 1991 in association with the indicate uneven conditions ranging from modest effects of the assumed reduction in oil prices on further growth in some parts of the country, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee 259 including areas that were benefiting from a rela- gested that inventories generally remained under tively strong agricultural sector, to declining ac- tight control, even in relatively depressed industivity in an increasing number of regions. Indica- tries and regions, and a pickup in overall demand tions of softening economic conditions were was therefore likely to lead fairly promptly to widespread, however, even in regions where stronger production activity. overall business activity still appeared to be Members commented that, apart from the key expanding. Business sentiment was negative in role of consumer spending, current forecasts of a much of the nation, and business contacts sug- rebound in overall economic activity relied to an gested that it was worsening in many areas. important extent on expectations of appreciable Many state and local governments, notably in further growth in net exports over the next relatively depressed areas, were facing severe several quarters. The substantial depreciation of budgetary problems and were curbing expendi- the dollar in terms of other key currencies over tures in response to lagging tax receipts and the past year, especially since mid-1990, would impaired access to financial markets. Consumer encourage exports and curb imports. Some memcaution was widespread and was evidenced by bers noted, however, that economic activity in a reports of generally soft retail sales thus far in the number of major trading nations might be someholiday season. Some members commented, what weaker than was anticipated earlier, however, that while its timing remained uncer- thereby tending to limit the growth in U.S. tain, an improvement in consumer sentiment exports. That view was reinforced by comments associated possibly with more settled conditions from some domestic exporters who now saw in the Middle East and an upturn in real dispos- more limited export opportunities in the year able income would be likely to generate consid- ahead, at least to some countries. erable strengthening in deferred consumer Turning to financial developments, members spending, particularly for motor vehicles, and to commented that economic recovery would defoster a rebound in overall economic activity. pend to an important degree on the availability of Other comments focused on the possibility that credit. While credit terms and conditions were consumer sentiment might well remain bearish not projected to tighten appreciably further, the and consumer spending restrained for an ex- possibility of such a development represented a tended period, perhaps even in the context of risk to the economy that could not be ruled out. favorable developments in the Middle East, as A major source of financial pressures was the consumers continued to adjust to the adverse decline in real estate values in many areas and wealth effects of weak housing markets, heavy the inability of many heavily indebted borrowers debt loads, concerns about the well publicized to service their real estate debts. The difficulties difficulties of many financial institutions, and in the real estate sector and the related vulnerafears about their employment prospects. Weak bility of many lending institutions obviously housing prices affected household spending espe- would be aggravated by a prolonged recession. cially by reducing perceived wealth, but also by Many business borrowers with less than prime eroding the margin of unborrowed equity avail- credit ratings continued to report problems in able to be liquified for spending on other goods securing financing, even from their usual lenders, and services. and those problems seemed to be increasing in at Many of the members stressed that business least some parts of the country in conjunction investment spending was likely to remain rela- with bank efforts to rebuild their capital positions tively weak, particularly the construction of of- and limit their lending risks in a weak economy. fice and other commercial facilities that were At the same time, there were indications of overbuilt in many metropolitan areas. To date, greater efforts by banks in some areas to increase the manufacture of capital goods appeared to their loans in order to improve their profits; have held up relatively well in key capital-pro- moreover, many large banks appeared to have ducing sections of the country, though the output made significant progress in adjusting the pricing of some types of capital equipment had turned of their loans to fake better account of lending down. Statistical and anecdotal reports sug- risks; those efforts also could lead to improved Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

260 Federal Reserve Bulletin • April 1991 profits and to a better availability of credit to remote and one that could be dealt with, should many potential borrowers. the need arise, by a future tightening of policy, The softness in real estate prices was having a although it was recognized that moves toward pronounced effect on inflationary sentiment, and restraint could be difficult. Persisting weakness against the background of reduced pressures on in the monetary aggregates tended to reinforce production resources and an extended period of the view that policy was not moving in a way limited monetary growth most of the members that would promote a resurgence in inflation. In believed that substantial progress toward lower evaluating the behavior of the monetary aggreinflation was a likely prospect over the next gates, members stressed the need for policy to several quarters. Rising unemployment in some provide adequate liquidity in a period of declinareas of the country was clearly reflected in ing economic activity in order to encourage downward adjustments to the wages of some economic recovery. categories of workers. More generally, the rise in Growth of M2 had displayed an uneven patbroad wage measures appeared to have peaked in tern but had tended to weaken over the course an atmosphere of concern about reduced em- of the year, especially in recent months. The ployment opportunities; it was noted in this behavior of M2 was not fully understood, but it connection that current unemployment rates appeared to be associated, at least in the past probably underestimated actual unemployment, year, with the constrained availability of credit as discouraged potential workers abandoned ef- from depository institutions and with lagging forts to secure employment. Members also com- income growth. In addition, other factors, such mented that competitive pressures, including as perceptions of increased risks in holding competition from foreign producers, remained deposit balances in current financial circumstrong in retail markets around the country and stances, seemed to be affecting monetary exalso in markets for many producer goods. pansion. A staff projection prepared for this In the Committee's discussion of policy for meeting pointed to a pickup in M2 growth over the intermeeting period ahead, all of the mem- the months immediately ahead, reflecting in bers indicated that they favored or could accept part a projected upturn in the expansion of a directive calling for some slight easing in nominal GNP and the lagged effects of the reserve conditions. Members noted that mone- recent declines in market rates on demands for tary policy had been eased in several steps over money balances. Members noted that for the the course of recent weeks; while substantial year 1990 as a whole, M2 would increase at a additional easing might not be needed under rate within the Committee's range, albeit in the prevailing conditions, a limited further move lower half of that range and that M2 growth had would provide some added insurance in cush- now been within the Committee's ranges conioning the economy against the possibility of a sistently in recent years. While monetary policy deepening recession and an inadequate rebound might still be viewed as somewhat restrictive in the economy without imposing an unwar- from the standpoint of monetary growth, memranted risk of stimulating inflation later. The bers cited other indicators such as the decline in members favored a cautious approach to further interest rates, the shape of the yield curve, and policy moves in light of the appreciable easing conditions in the commodity and foreign exin reserve conditions that already had been change markets as indicative of an adequate implemented and the considerable decline that provision of liquidity and a basically satisfachad occurred in market interest rates. The tory policy in current circumstances. Nonethestimulus provided by the recent easing actions less, members stressed the need to maintain an had not yet been felt in the economy, and given appropriate rate of monetary expansion, and the lags that were involved, there was some risk they generally concluded that the behavior of of overdoing the easing of policy at some point, the monetary aggregates would need to be monwith potential inflationary consequences once itored with special care in the period ahead for the economic recovery got under way. Most of any indication that their growth might be falling the members viewed such a risk as relatively significantly short of current expectations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee 261 During this discussion, members noted the Committee were expected to be consistent with potential interactions between open market pol- some pickup in monetary growth, including exicy and a possible, near-term reduction in the pansion of M2 and M3 at annual rates of about 4 discount rate. Most of the Federal Reserve and 1 percent respectively over the four-month Banks had proposed a reduction of Vi percent- period from November to March. age point in the discount rate, and in light of At the conclusion of the meeting, the following their concerns about the narrowing spread be- domestic policy directive was issued to the Fedtween the discount rate and short-term market eral Reserve Bank of New York: rates, the members generally favored Board approval of that reduction to implement an easing of conditions in money markets. Ordi- The information reviewed at this meeting suggests narily, a reduction in the discount rate would appreciable weakening in economic activity. Total nonfarm payroll employment fell sharply further in show through fully in lower short-term market November, reflecting widespread job losses that were rates. However, because of their desire to ease especially pronounced in manufacturing and construcreserve conditions only slightly in the near tion; the civilian unemployment rate rose to 5.9 perterm, the members generally supported a pro- cent. Industrial output declined markedly in October posal to gear open market operations toward and November, in part because of sizable cutbacks in the production of motor vehicles. Retail sales were allowing only about one-half of the proposed weak in real terms in October and November; real cut in the discount rate to be reflected immedidisposable income has been reduced not only by a ately in the money market. If the discount rate decrease in total hours worked but also by the effects were not reduced, the Manager for Domestic of higher energy prices. Advance indicators of busi- Operations would execute the slight easing of ness capital spending point to considerable softening in investment in coming months. Residential construcpolicy through open market operations alone. tion has declined substantially further in recent With regard to any further adjustment in the months. The nominal U.S. merchandise trade deficit degree of reserve pressure later in the inter- widened in October from its average rate in the third meeting period, nearly all the members ex- quarter as non-oil imports rose more sharply than pressed a preference for retaining a bias in the exports. Increases in consumer prices moderated in November largely as a result of a softening in oil directive toward potential easing, especially prices. The latest data on labor costs suggest some given the recessionary tendencies in the econimprovement from earlier trends. omy, current fragilities in the financial system, Most interest rates have fallen appreciably since the and the weakness in the monetary aggregates. Committee meeting on November 13. In foreign exchange markets, the trade-weighted value of the dollar At the conclusion of the Committee's discusin terms of the other G-10 currencies rose slightly on sion, all of the members indicated that they could balance over the intermeeting period. support a directive that called for some slight M2 was about unchanged on balance over October further easing in the degree of pressure on re- and November after several months of relatively limserve positions and that also provided for giving ited expansion, while M3 declined slightly in both months. From the fourth quarter of 1989 through emphasis to potential developments that might November, expansion of M2 was estimated to be in require some additional easing during the interthe lower half of the Committee's range for the year meeting period. It was recognized that open and growth of M3 near the lower end of its range. market operations initially might need to take Expansion of total domestic nonfinancial debt appears account of a possible reduction in the discount to have been near the midpoint of its monitoring range. rate. Subsequent to the initial easing, slightly The Federal Open Market Committee seeks monetary and financial conditions that will foster price greater reserve restraint might be acceptable stability, promote growth in output on a sustainable during the intermeeting period or somewhat basis, and contribute to an improved pattern of interlesser reserve restraint would be acceptable de- national transactions. In furtherance of these objecpending on progress toward price stability, the tives, the Committee at its meeting in July reaffirmed strength of the business expansion, the behavior the range it had established in February for M2 growth of 3 to 7 percent, measured from the fourth quarter of of the monetary aggregates, and developments in 1989 to the fourth quarter of 1990. The Committee in foreign exchange and domestic financial markets. July also retained the monitoring range of 5 to 9 The reserve conditions contemplated by the percent for the year that it had set for growth of total Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

262 Federal Reserve Bulletin • April 1991 domestic nonfinancial debt. With regard to M3, the 2. Authorization for Committee recognized that the ongoing restructuring Domestic Open Market Operations of thrift depository institutions had depressed its growth relative to spending and total credit more than The Committee approved a temporary increase anticipated. Taking account of the unexpectedly of $6 billion, to a level of $14 billion, in the limit strong M3 velocity, the Committee decided in July to reduce the 1990 range to 1 to 5 percent. For 1991, the on changes between Committee meetings in Committee agreed on provisional ranges for monetary System Account holdings of U.S. government growth, measured from the fourth quarter of 1990 to and federal agency securities. The increase the fourth quarter of 1991, of 2Vi to 6V2 percent for M2 amended paragraph 1(a) of the Authorization and 1 to 5 percent for M3. The Committee tentatively for Domestic Open Market Operations and was set the associated monitoring range for growth of total domestic nonfinancial debt at AVz to 8V2 percent for effective for the intermeeting period ending 1991. The behavior of the monetary aggregates will with the close of business on February 6, 1991. continue to be evaluated in the light of progress toward price level stability, movements in their velocities, and developments in the economy and financial markets. Votes for this action: Messrs. Greenspan, Corrigan, Angell, Boehne, Boykin, Hoskins, Kelley, In the implementation of policy for the immediate LaWare, Mullins, Ms. Seger, and Mr. Stern. Votes future, the Committee seeks to decrease slightly the against this action: None. existing degree of pressure on reserve positions, taking account of a possible change in the discount rate. Depending upon progress toward price stability, The Manager for Domestic Operations adtrends in economic activity, the behavior of the mon- vised the Committee that the current leeway of etary aggregates, and developments in foreign ex- $8 billion for changes in System Account holdchange and domestic financial markets, slightly greater ings was not likely to be sufficient to accommoreserve restraint might or somewhat lesser reserve date the potentially very large need to drain restraint would be acceptable in the intermeeting period. The contemplated reserve conditions are ex- reserves over the intermeeting period ahead. pected to be consistent with growth of M2 and M3 That need would reflect a bulge in available over the period from November through March at reserves stemming from the elimination of reannual rates of about 4 and 1 percent, respectively. serve requirements on nonpersonal time deposits and net Eurocurrency liabilities combined Votes for this action: Messrs. Greenspan, Corwith the effects of seasonal reductions in currigan, Angell, Boehne, Boykin, Hoskins, Kelley, rency in circulation and in required reserves LaWare, Mullins, Ms. Seger, and Mr. Stern. Votes against this action: None. over the intermeeting period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

263 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 201, its Regulation A (Extensions of Credit by Federal Depository 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. The discount rate is the interest rate that is extended to depository institutions under section charged depository institutions when they borrow 201.3(b)(1) of Regulation A are: from their district Federal Reserve Banks. The Board acted on requests submitted by the Boards of Directors of the twelve Federal Reserve Banks. The Board Federal Reserve approved the requests in light of further declines in Rate Effective Date Bank economic activity, continued sluggish growth trends in money and credit, and evidence of abating inflationary Boston 6.0 February 1, 1991 New York 6.0 February 1, 1991 pressures, including weakness in commodity prices. Philadelphia 6.0 February 1, 1991 Effective on the dates specified below, 12 C.F.R. Cleveland 6.0 February 1, 1991 Richmond 6.0 February 1, 1991 Part 201 is amended as follows: Atlanta 6.0 February 4, 1991 Chicago 6.0 February 1, 1991 St. Louis 6.0 February 4, 1991 1. The authority citation for 12 C.F.R. Part 201 con- Minneapolis 6.0 February 1, 1991 tinues to read as follows: Kansas City 6.0 February 1, 1991 Dallas 6.0 February 1, 1991 San Francisco, 6.0 February 1, 1991 Authority: Sees. 10(a), 10(b), 13, 13a, 14(d) and 19 of the Federal Reserve Act (12 U.S.C. 347a, 347b, 343 (b) Other extended credit. The rates for other extended et seq., 347c, 348 et seq., 357, 374, 374a and 461); and credit provided to depository institutions under sussec. 7(b) of the International Banking Act of 1978 tained liquidity pressures or where there are excep- (12 U.S.C. 374d). tional circumstances or practices involving a particular institution under section 201.3(b)(2) of Regulation A 2. Section 201.51 is revised to read as follows: are: Section 201.51—Short-term Adjustment Credit for Depository Institutions Federal Reserve Rate Effective The rates for short-term adjustment credit provided to Bank depository institutions under section 201.3(a) of Reg- Boston 6.0 February 1, 1991 ulation A are: New York 6.0 February 1, 1991 Philadelphia 6.0 February 1, 1991 Cleveland 6.0 February 1, 1991 Richmond 6.0 February 1, 1991 Atlanta 6.0 February 4, 1991 Chicago 6.0 February 1, 1991 Federal Reserve Rate Effective Date St. Louis 6.0 February 4, 1991 Bank Minneapolis 6.0 February 1, 1991 Kansas City 6.0 February 1, 1991 Boston 6.0 February 1, 1991 Dallas 6.0 February 1, 1991 New York 6.0 February 1, 1991 San Francisco 6.0 February 1, 1991 Philadelphia 6.0 February 1, 1991 Cleveland 6.0 February 1, 1991 Richmond 6.0 February 1, 1991 These rates apply for the first 30 days of borrowing. Atlanta 6.0 February 4, 1991 Chicago 6.0 February 1, 1991 For credit outstanding for more than 30 days, a flexible St. Louis 6.0 February 4, 1991 rate will be charged which takes into account rates on Minneapolis 6.0 February 1, 1991 Kansas City 6.0 February 1, 1991 market sources of funds, but in no case will the rate Dallas 6.0 February 1, 1991 charged be less than the basic discount rate plus San Francisco 6.0 February 1, 1991 one-half percentage point. Where extended credit pro- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

264 Federal Reserve Bulletin • April 1991 vided to a particular depository institution is anticipated to be outstanding for an unusually prolonged (4) A check drawn on a Federal Reserve Bank or period and in relatively large amounts, the 30-day time Federal Home Loan Bank; a check drawn by a state period may be shortened. or unit of general local government; or a cashier's, certified, or teller's check; if any check referred to in this paragraph (b)(4) is a local check that is not governed by the availability requirements of FINAL RULE — AMENDMENT TO REGULATION section 229.10(c). CC (c) Nonlocal checks—(1) In general. Except as provided in paragraphs (d), (e), and (f) of this section, a The Board of Governors is amending 12 C.F.R. Part depositary bank shall make funds deposited in an 229, its Regulation CC (Availability of Funds and account by a check available for withdrawal not later Collection of Checks), to conform to recent amendthan the fifth business day following the banking day ments to the Expedited Funds Availability Act (see the on which funds are deposited, in the case of— Cranston-Gonzales National Affordable Housing Act, Pub. L. No. 101-625, section 1001). The amendments * ^e s(s ^e extend the availability schedules for deposits at non- (d) Time period adjustment for withdrawal by cash or proprietary automated teller machines for a period of similar means. A depositary bank may extend by one two years. The amendments to the Expedited Funds business day the time that funds deposited in an Availability Act were signed into law on November 28, account by one or more checks subject to paragraphs 1990, with a retroactive effective date of September 1, (b), (c), or (f) of this section are available for with- 1990. drawal by cash or similar means. *** A depositary Effective September 1, 1990, 12 C.F.R. Part 229 is bank shall, however, make $400 of these funds availamended as follows: able for withdrawal by cash or similar means not later Part 229—[Amended] than 5:00 p.m. on the business day on which the funds are available under paragraphs (b), (c), or (f) of this section. *** 1. The authority citation for Part 229 continues to read as follows: Authority: Title VI of Pub. L. 100-86, 101 Stat. 552, (f) Deposits at nonproprietary ATMs. 635, 12 U.S.C. 4001 et seq. (1) (i) A depositary bank shall make funds deposited in an account at a nonproprietary ATM by cash or 2. In section 229.12, paragraph (a) and the introduc- check available for withdrawal not later than the tory text to paragraph (b) are revised, paragraph (b)(3) fifth business day following the banking day on is removed, paragraphs (b)(4) and (b)(5) are redesig- which the funds are deposited. nated as (b)(3) and (b)(4), newly redesignated para- (ii) Paragraph (f)(1) of this section is effective graph (b)(4) is revised, paragraph (c)(1) introductory September 1, 1990, through November 27, 1992. text and the first and third sentences of paragraph (d) (2) (i) A depositary bank shall make funds deposited are revised, and a new paragraph (f) is added to read as in an account at a nonproprietary ATM available follows: for withdrawal not later than the second business day following the banking day on which the funds Section 229.12—Permanent Availability are deposited, in the case of— Schedule (A) Cash; (B) A check or checks described in sec- (a) Effective date. Except as provided in paragraph tions 229.10(c)(l)(i) through (v) and (vii), even (f)(2) of this section, the permanent availability sched- though the check or checks are not deposited in ule contained in this section is effective September 1, person to an employee of the depositary bank; 1990. and (b) Local checks and certain other checks. Except as (C) A check described in paragraph (b) of this provided in paragraphs (d), (e), and (f) of this section, section. a depositary bank shall make funds deposited in an (ii) A depositary bank shall make funds deposited account by a check available for withdrawal not later in an account by a check described in paragraph than the second business day following the banking (c) of this section at a nonproprietary ATM availday on which funds are deposited, in the case of— able for withdrawal not later than the fifth busi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 265 ness day following the banking day on which the funds are deposited. In addition, the proceeds of Treasury checks and (iii) Paragraph (f)(2) of this section is effective U.S. Postal Service money orders not subject to November 28, 1992. next-day (or second-day) availability under section 229.10(c); checks drawn on Federal Reserve Banks and Federal Home Loan Banks; checks drawn APPENDIX C TO PART 229—[AMENDED] by a state or unit of general local government; and cashier's, certified, and teller's checks not subject to 3. Appendix C is amended as set forth below: next-day (or second-day) availability under section 229.10(c) and payable in the same check proa. In the listing following the first paragraph of cessing region as the depositary bank, must be made Appendix C, the entry for Model Clause C-10 is available for withdrawal by the second business day revised to read as follows: following deposit. APPENDIX C—MODEL FORMS, CLAUSES, AND (f) Deposits at nonproprietary ATMs. The Act and NOTICES regulation provide a special rule for deposits made at nonproprietary ATMs. This paragraph does not apply * * * * * to deposits made at proprietary ATMs. During the C-10—Automated teller machine deposits (permanent period from September 1,1990, through November 27, schedule, extended hold) 1992, all deposits at a nonproprietary ATM must be made available for withdrawal by the fifth business day following the banking day of deposit (i.e., such deposb. In model clause C-10, the heading and the first its may be treated in the same manner as deposits of sentence under the subheading "Deposits at Auto- nonlocal checks under the permanent schedule). For mated Teller Machines" are revised to read as follows: example, during that time period, a deposit made at a nonproprietary ATM on a Monday, including any C-10—Automated Teller Machine Deposits (Perma- deposit by cash or checks that would otherwise be nent Schedule, Extended Hold) subject to next-day (or second-day) availability, must be made available for withdrawal not later than Mon- Deposits at Automated Teller Machines day of the following week. Effective November 28, 1992, deposits of cash, Funds from any deposits (cash or checks) made at "next-day" checks, and local checks at a nonpropriautomated teller machines (ATMs) we do not own or etary ATM must be made available by the second operate will not be available until the fifth business day business day following the banking day of deposit. In after the day of your deposit. *** addition, the first $100 of the aggregate deposit at a nonproprietary ATM on any one banking day must be made available for withdrawal on the second business APPENDIX E TO PART 229 —[AMENDED] day after the banking day of deposit (rather than on the next day, as required by section 229.10(c)(l)(vii) for 4. Appendix E is amended as set forth below: deposits at staffed teller stations and proprietary ATMs). If a customer makes a deposit at a nonpropria. In the Commentary to section 229.12, a new etary ATM and one or more deposits to the same sentence is added to the end of paragraph (a), the account on the same day at another location, such as a second paragraph of paragraph (b) is revised, and a staffed teller station, the $100 rule is applied to the new paragraph (f) is added to read as follows: aggregate of all deposits made on that day. In this situation, the $100 rule is applied first to funds for Section 229.12—Permanent Availability which the $100 must be available for withdrawal on the Schedule next day (e.g., funds deposited at a staffed teller station) and then to funds deposited at nonproprietary (a) Effective date. *** Paragraph (f) provides special ATMs for which the $100 must be made available for effective dates for deposits made at nonproprietary withdrawal on the second day. For example, if a ATMs. customer deposits a $75 nonlocal check at a staffed (b) Local checks and certain other checks. teller station and a $100 nonlocal check at a nonpro- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

266 Federal Reserve Bulletin • April 1991 prietary ATM on the same banking day, $75 must be also delegating to the Reserve Banks authority to available for withdrawal on the next business day (as approve investments by state member banks in bank required by section 229.10(c)(l)(vii)) and an additional premises without quantitative limitation. Applications $25 must be available for withdrawal on the second falling outside the standards set forth herein will be business day after the banking day of deposit (as forwarded to the Board for further consideration. required by this paragraph). Nonlocal checks depos- Effective February 15, 1991, 12 C.F.R. Part 265 is ited at a nonproprietary ATM after November 28, amended as follows: 1992, must continue to be made available for withdrawal by the fifth business day following the banking Part 265—Rules Regarding Delegation of day of deposit. Authority b. In the Commentary to section 229.16, the first sentence of the seventh paragraph of paragraph (b) is 1. The authority citation for Part 265 continues to read revised to read as follows: as follows: Section 229.16—Specific Availability Policy Authority: Section 1 l(k), 38 Stat. 261 and 80 Stat. 1314 Disclosure (12 U.S.C. 248(k». 2. Section 265.2 is amended by revising paragraphs (b) * * * (c)(10) and (f)(7)(i), by removing and reserving paragraphs (c)(24) and (c)(26), by removing subparagraph (f)(7)(ii), and by adding new paragraphs (f)(50) and A bank taking advantage of the extended time (f)(51) to read as follows: period for making deposits at nonproprietary ATMs available for withdrawal under section 229.12(f)(1) Section 265.2—Specific Functions Delegated to must explain this in the initial disclosure. * * * Board Employees and to Federal Reserve Banks c. In the Commentary to Appendix C, under the subheading "Model C-10," the first sentence is re- (c) * * * vised to read as follows: (10) To exercise the functions described in paragraphs (f)(4),(50), and (51) of this section in cases in which the conditions specified therein as prerequi- APPENDIX C—MODEL FORMS, CLAUSES, AND sites to exercise of such functions by the Federal NOTICES Reserve Banks are not present, or in which, even though such conditions are present, the appropriate Federal Reserve Bank considers that nevertheless it Model C-10. This clause must be incorporated in the should not take action on the member bank's respecific availability-policy disclosure by banks that quest, and to exercise the functions described in reserve the right to delay availability of deposits at paragraphs (f)(1),(2), and (7) of this section in cases nonproprietary ATMs until the fifth business day in which the appropriate Federal Reserve Bank following the date of deposit, as permitted by considers that it should not take action to approve section 229.12(f)(1). * * * the member bank's request. (24) [Reserved] FINAL RULE—AMENDMENT TO RULES REGARDING DELEGATION OF AUTHORITY (26) [Reserved] ^ * * * The Board of Governors is amending 12 C.F.R. Part 265, its Rules Regarding Delegation of Authority, in ^ * * * order to delegate to the Federal Reserve Banks authority to approve certain proposals by state member (i) The bank's capitalization in relation to the banks to issue, or retire prior to maturity subordinated character and condition of its assets and to its capital notes. As part of this amendment, the Board is deposit liabilities and other corporate responsibil- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 267 ities, including the volume of its risk assets and of Section 265.2—Specific Functions Delegated to its marginal and inferior-quality assets, all consid- Board Employees and to Federal Reserve ered in relation to the strength of its management. Banks. (50) Approval of subordinated debt to capital. To (b) * * * approve a State member bank's proposed subordi- (14) With the concurrence of the Staff Director of nated debt issue as an addition to the bank's capital Banking Supervision and Regulation, to exercise the structure if all of the following conditions are met: functions described in section (f)(52) of this section (i) The terms of the proposed debt issue satisfy the in those cases in which the appropriate Federal requirements of section 204.2(a)(l)(vii)(C) of this Reserve Bank concludes that, because of unusual part (Regulation D) and the Board's guideline considerations, or for other good cause, it should criteria for approval of subordinated debt as an not take action, addition to capital; and (c) * * * (ii) No significant policy issue is raised by the (37) With the concurrence of the General Counsel, proposed issue as to which the Board has not to exercise the functions described in section (f)(52) expressed its view. of this section in those cases in which the appropri- (51) To approve the retirement prior to maturity of ate Federal Reserve Bank concludes that, because capital notes issued by a state member bank de- of unusual considerations, or for other good cause, scribed in section 204.2(a)(l)(vii)(C) of this part it should not take action. (Regulation D), provided the Reserve Bank is satisfied that the bank's capital position will be adequate ^ * * * after the proposed redemption. (52) Under the provisions of section 5(d)(3)(E) of the Federal Deposit Insurance Act (12 U.S.C. 1815(d)(3)(E)), to approve requests by a bank holding company to engage in any transaction described FINAL R ULE—AMENDMENT TO R ULES in subparagraph (A) of section 5(d)(3) of that Act. REGARDING DELEGATION OF AUTHORITY The Board of Governors is amending 12 C.F.R. Part 265, its Rules Regarding Delegation of Authority, in ORDERS ISSUED UNDER BANK HOLDING order to delegate to the Reserve Banks, and to the COMPANY ACT Staff Director of the Division of Banking Supervision and Regulation acting together with the General Coun- Orders Issued Under Section 3 of the Bank sel of the Board, authority to approve certain transac- Holding Company Act tions requiring approval of the Federal Reserve pursuant to section 5(d)(3) of the Federal Deposit Bancorp III, Inc. Insurance Act ("FDI Act") (12 U.S.C. 1815(d)(3)). Kansas City, Kansas This amendment adds new paragraphs (b)(14), (c)(37) and (0(52) to section 265.2 to effect the delegation. Order Denying Formation of a Bank Holding Effective February 28, 1991, 12 C.F.R. Part 265 is Company amended as follows: Bancorp III, Inc., Kansas City, Kansas ("Bancorp"), Part 265—Rules Regarding Delegation of has applied for the Board's approval under section Authority 3(a)(1) of the Bank Holding Company Act ("BHC Act") (12 U.S.C. § 1842(a)(1)) to become a bank 1. The authority citation for Part 265 continues to read holding company by acquiring 100 percent of the as follows: voting shares of Farmers Bank of Polo, Polo, Missouri ("Bank"). Authority: Section ll(k), 38 Stat. 261 and 80 Stat. 1314 Notice of the application, affording interested per- (12 U.S.C. 248(k)). sons an opportunity to submit comments, has been published (55 Federal Register 51,160 (1990)). The 2. The Board adds paragraphs (b)(14), (c)(37) and time for filing comments has expired and the Board has (f)(52) to section 265.2, to read as set forth below: considered the application and all comments received Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

268 Federal Reserve Bulletin • April 1991 in light of the factors set forth in section 3(c) of the raise concerns that his attention to affairs of Bancorp BHC Act. and Bank may be diverted or affected by the manage- Bancorp is a non-operating company formed for the rial and financial demands of his other business holdpurpose of acquiring Bank. Bank is the 344th largest ings. commercial banking organization in Missouri, control- The Board has considered Principal's prior banking ling deposits of $9.4 million, representing less than 1 experience. The Board believes that, on balance, the percent of the total deposits in commercial banking business difficulties that Principal is experiencing and organizations in the state.1 the other facts of record warrant a decision that Under section 3(c) of the BHC Act, the Board must Principal should not be permitted to expand the numconsider several factors, including the "managerial ber of banks under his management and control at this resources ... of the company or companies and the time. Accordingly, the Board concludes that considerbanks concerned."2 The Board's regulations provide ations relating to managerial resources are not consisthat, in reviewing applications under section 3 of the tent with approval in this case. Considerations relating BHC Act, the Board will consider the competence and to financial resources, competitive factors, future character of the principals of the applicant and its prospects and the convenience and needs of the comsubsidiary banks, including their record of compliance munity do not lend sufficient weight to warrant apwith laws and regulations. 12 C.F.R. 225.13(b)(2). proval of this application. In this case, an individual who proposes to acquire Based on all the facts of record in this case, the 25 percent of the shares of Bancorp for a nominal Board concludes that adverse considerations relating investment, and serve as president and director of to managerial resources of Bancorp and Bank are not Bancorp and director of Bank ("Principal"), has in- outweighed by other factors. Accordingly, it is the curred significant contingent liabilities as a result of his Board's judgment that approval of this application nonbanking business activities, primarily real estate would not be in the public interest and that the partnerships. The record indicates that loans that have application should be, and hereby is, denied. The been made by banks to Principal's real estate interests Board notes that this denial is without prejudice to that have been guaranteed by Principal are not current Principal or the other investors filing other applicaand that Principal's troubled financial condition could tions under the BHC Act under different circumcontinue to result in losses on these loans. stances. The Board believes that the conduct of a manage- By order of the Board of Governors, effective ment official in dealing with other banks is relevant in February 13, 1991. evaluating that official's managerial strength. In this proposal, Principal maintains that he brings the most Voting for this action: Chairman Greenspan and Governors significant managerial strength to the group of inves- Angell, Kelley, La Ware, and Mullins. Absent and not voting: Governor Seger. tors in Bancorp. Principal would provide management services to Bank through a management contract, as JENNIFER J. JOHNSON well as serving as president of Bancorp, and a director Associate Secretary of the Board of both Bancorp and Bank. In these capacities, Principal would be responsible for reviewing lending prac- Mitsui Manufacturers Bank tices and policies of Bank and for evaluating certain Los Angeles, California loans as well as loan charge-off and collection decisions. There is significant concern that the well-publi- Notice of Public Meeting cized financial difficulties of Principal and his current inability to fulfill his own obligations to banks may impair Principal's ability to act effectively and pru- Background dently in making lending and collection policies at Bank and serve as a management official of Bank. The On December 14, 1990, the Board of Governors of the degree of Principal's financial problems and the con- Federal Reserve System ordered a public meeting on tinuing attention that these problems warrant also the issues regarding the record of performance of Mitsui Manufacturers Bank, Los Angeles, California ("MMB"), under the Community Reinvestment Act 1. Banking and market share data are as of December 31, 1989. ("CRA"). This public meeting was ordered in connec- 2. 12 U.S.C. § 1842(c). The Supreme Court has stated that section 3(c) authorizes the Board to disapprove formation of a bank holding tion with an application by MMB's parent company, company solely on the grounds of financial or managerial unsound- The Mitsui Taiyo Kobe Bank, Limited, Tokyo, Japan ness, regardless of whether that unsoundness would be caused or ("Mitsui Taiyo Kobe"), under section 3 of the Bank exacerbated by the proposed transaction. Board of Governors v. First Lincolnwood Corp., 439 U.S. 234, 252 (1978). Holding Company Act ("BHC Act") to convert Taiyo Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 269 Kobe Bank and Trust Company, New York, New All persons testifying and persons not testifying at York ("TKBTC" and the "TKBTC Application"), the public meeting may file written submissions with from a nonbank trust company back into a bank the Board through April 8, 1991. Persons not listed in pursuant to the interstate banking laws of New York the attached agenda may be permitted to give testiand California. In its prior approval of Mitsui Taiyo mony at the public meeting in the discretion of the Kobe's application to acquire TKBTC as a nonbank Presiding Officer if time permits at the conclusion of trust company, the Board noted that MMB had not the schedule of witnesses. implemented in all respects the type of CRA program outlined in the Joint Agency Policy Statement regard- Purpose and Procedures ing the CRA, 54 Federal Register 13,742 (1989) ("Agency CRA Statement"), and that there were The purpose of the public meeting is to receive addisignificant issues raised regarding the adequacy of tional information regarding the record of performance MMB's CRA performance. The Mitsui Bank, Limited, of MMB under the CRA. The CRA requires the 76 Federal Reserve Bulletin 381, 384-85 (1990) {"Mit- appropriate federal financial supervisory agency to sui Bank'''). "assess [an] institution's record of meeting the credit In Mitsui Bank, the Board stated its intent to hold a needs of its entire community, including low- and public meeting on MMB's CRA performance unless moderate-income neighborhoods, consistent with the the record developed over several months in the safe and sound operation of [the] institution." Board's view resolved the issues regarding MMB's 12 U.S.C. § 2903. The Board, as a federal financial CRA performance. After considering the record in this supervisory agency, is required to take this record into application, the Board concluded that a public meeting account in its evaluation of an application under was appropriate and approved the order for a public section 3 of the BHC Act. meeting in Mitsui Manufacturers Bank, 77 Federal In this regard, the Agency CRA Statement provides Reserve Bulletin 109 (1991) ("Public Meeting Order"). guidance regarding the types of policies and proce- The Public Meeting Order specified that all persons dures that the federal financial supervisory agencies wishing to give testimony at the public meeting should believe that financial institutions should have in place file certain information with the Board not later than in order to fulfill their responsibilities under the CRA. January 15, 1991. On the basis of these requests, and In addition, the Agency CRA Statement provides taking into account the interests of the persons re- guidance regarding the procedures that these agencies questing to appear, the Public Meeting Order directed will use during the application process to review an the Presiding Officer to schedule a date for the public institution's CRA compliance and performance. The meeting, to choose an appropriate location in Califor- Agency CRA Statement also suggests that decisions nia for the public meeting, and to schedule times for by agencies to allow financial institutions to expand persons wishing to testify at the public meeting. The will be made pursuant to an analysis of that institu- Presiding Officer was also given the authority and discre- tion's overall CRA performance, and will be based on tion to conduct the public meeting and to prescribe all the actual record of performance of the institution. In procedures incidental thereto to ensure that the public considering the TKBTC Application, the Board will meeting proceeds in a fair and orderly manner. take into account the information developed in this public meeting, the examinations of MMB's record by Public Meeting Date and Scheduling the Federal Deposit Insurance Corporation, MMB's primary supervisor, and the Board's own analysis of After considering these requests, the Presiding Officer the record. has determined that the public meeting on the CRA The Public Meeting Order specified that the public issues raised in the TKBTC Application will be held on meeting is to be convened under the Board's policy March 21, 1991, at the Robert Pitts Westminster statement regarding informal meetings in section Neighborhood Center, 1827 E. 103rd Street, Los An- 262.25(d) of the Board's Rules. This policy statement geles, California, 90002, beginning at 9:00 a.m. At- provides that the purpose of a public meeting is to tached to this notice is an agenda scheduling persons elicit information, to clarify factual issues related to an and groups who have indicated that they wish to give application, and to provide testimony. 12 C.F.R. testimony. Copies of testimony may, but need not, be 262.25(d). In contrast to a formal administrative hearfiled with the Presiding Officer before a person's ing, the rules for taking evidence in an administrative presentation. To the extent available, translators will proceeding will not apply to this public meeting. In be provided to persons wishing to present their views conducting the public meeting, the Presiding Officer in a language other than English if they so request to will have the authority and discretion to ensure that the Presiding Officer no later than March 1, 1991. the meeting proceeds in a fair and orderly manner. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

270 Federal Reserve Bulletin • April 1991 Individuals or groups may be represented by counsel. analyses of MMB's geographic distribution of The public meeting will be transcribed and information credit extensions, credit applications, and credit regarding procedures for obtaining a copy of the denials; transcript will be announced at the public meeting. (vii) the record of MMB concerning the opening Persons desiring a transcript may also write to the and closing of branches and providing services at Presiding Officer regarding its cost and availability. branches; Testimony at the public meeting will be presented to (viii) the extent of MMB's participation, including a panel consisting of the Presiding Officer, Griffith L. investments, in local community development Garwood, Director of the Division of Consumer and and redevelopment projects or programs; Community Affairs, Federal Reserve Board; Shawn (ix) an operational description of MMB's current McNulty, Program Manager, Compliance, Division of CRA program, including personnel, and a descrip- Consumer and Community Affairs, Federal Reserve tion of training and any special skills possessed by Board; Robert deV. Frierson, Legal Division, Federal MMB's CRA personnel and loan officers; and Reserve Board; and W. Gordon Smith, Vice Presi- (x) any evidence of prohibited discriminatory dent, Federal Reserve Bank of San Francisco. These credit practices by MMB. panel members may question witnesses, but no cross examination of witnesses will be permitted. The Board noted in Mitsui Bank that MMB had Questions may be submitted in advance to the undertaken a review of its CRA program to meet the Presiding Officer for consideration by the panel mem- credit needs of its communities and had committed to bers. These questions will be forwarded to the partic- make certain revisions in that plan. MMB's progress in ipant possessing the requested information. Partici- meeting these commitments would be a relevant conpants receiving these questions may supply the sideration for participants appearing at the public requested information to the Presiding Officer to the meeting. Accordingly, a description of MMB's current extent relevant to the public meeting. Any information CRA program, which may omit confidential business supplied before the meeting will be available to any plans, should be submitted to the Presiding Officer by person upon request. March 11, 1991. This material will be supplied to any Persons testifying at the public meeting should ad- person upon request to the Presiding Officer. dress, to the extent possible, the following issues: By order of the Presiding Officer, effective February (i) the activities conducted by MMB to ascertain 20, 1991. the credit needs of its communities, including the extent of its efforts to communicate with members GRIFFITH L. GARWOOD of its communities regarding the credit services Presiding Officer being provided by MMB; (ii) the extent of participation by MMB's board of Orders Issued Under Section 4 of the Bank directors in formulating policies and reviewing Holding Company Act MMB's performance with respect to the purposes Philippine Commercial International Bank of the CRA; Manila, The Philippines (iii) the extent of MMB's marketing and special credit-related programs to make members of its communities aware of the credit services offered Order Approving Application to Engage in Money by MMB ; Transmission Activity (iv) the types of credit MMB makes available to its communities, including the extent of MMB's Philippine Commercial International Bank, Manila, origination of residential mortgage loans, housing The Philippines ("Applicant"), a foreign banking orrehabilitation loans, home improvement loans, ganization, has applied under section 4(c)(8) of the and small business or small farm loans within its Bank Holding Company Act (12 U.S.C. § 1843(c)(8)) communities, including analyses of data under the ("BHC Act") and section 225.23(a)(3) of the Board's Home Disclosure Mortgage Act, or the purchase Regulation Y (12 C.F.R. 225.23(a)(3)) to engage of any such loans originated in its communities; de novo through its subsidiary, PCI Express Padala, (v) the extent of MMB's participation in govern- Inc., Los Angeles, California ("Company"), in the mentally-insured, -guaranteed, or -subsidized activity of transmitting money for customers to a loan programs for housing, small businesses, or foreign country. small farms; Notice of the application, affording an opportunity (vi) the delineation of MMB's service areas, in- for interested persons to submit comments, has been cluding low- and moderate-income areas, and published (56 Federal Register 861 (1991)). The time Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 271 for filing comments has expired, and the Board has closely related to banking for purposes of section considered the application and all comments received 4(c)(8) of the BHC Act.* The Board also believes that in light of the factors set forth in section 4 of the BHC consummation of the proposal can reasonably be Act. expected to result in public benefits. The proposal Applicant, with consolidated assets equivalent to provides customers with improved access to a reliable approximately $1.1 billion, has numerous branches and efficient money transmission service. In addition, throughout the Philippines.1 In addition, Applicant Applicant's de novo entry into the market for these operates an agency in Los Angeles, California, and services would increase the level of competition offices in Germany, Hong Kong, and Saudi Arabia. among providers of these services. Consummation of Applicant proposes to engage de novo throughout the proposal is not likely to result in any significant California in the activity of transmitting money for adverse effects, such as undue concentration of recustomers to a foreign country through Company. sources, decreased or unfair competition, conflicts of Applicant has committed to conduct the proposed interests, or unsound banking practices. Accordingly, activity from offices in California that are located the Board has determined that the balance of public where Applicant could operate an agency or branch. interest factors it must consider under section 4(c)(8) Company will not engage in any other nonbanking of the BHC Act is favorable and consistent with activity, and, in particular, will not engage in commer- approval. cial lending activities. Company will not be an FDIC- Based on the foregoing and other facts of record, the insured institution. Company will operate under a Board has determined that consummation of the prolicense as a money transmitter granted under Califor- posed transaction would be consistent with the public nia law, and will be subject to examination by the interest. Accordingly, the Board has determined that California Superintendent of Banks.2 the application under section 4 of the BHC Act should Company would receive funds from customers at its be, and hereby is, approved. The determination as to Los Angeles office for delivery to designated persons the nonbanking activity is subject to all of the condiat one of Applicant's branch banks in the Philippines. tions contained in the Board's Regulation Y, including Since the transmission of money activity often in- those in sections 225.4(d) and 225.23(b)(3) (12 C.F.R. volves delivery of funds in the local currency, Com- 225.4(d) and 225.23(b)(3)), and to the Board's authorpany would convert the U.S. dollars received to ity to require such modification or termination of the Philippine pesos through a foreign exchange transac- activities of a holding company or any of its subsidiartion with Applicant's head office. Under California ies as the Board finds necessary to assure compliance law, Company is authorized to receive money for with, or prevent evasions of, the provisions and purtransmission only to foreign countries.3 poses of the BHC Act and the Board's regulations and orders issued thereunder. Section 4(c)(8) of the BHC Act requires the Board to consider whether: This transaction shall not be consummated later (i) the proposed activity is closely related to bank- than three months after the effective date of this order, ing; and unless such period is extended for good cause by the (ii) the performance of the proposed activity is a Board or by the Federal Reserve Bank of San Franproper incident to banking — that is whether the cisco, pursuant to delegated authority. proposed activity "can reasonably be expected to By order of the Board of Governors, effective Febproduce benefits, such as greater convenience, in- ruary 13, 1991. creased competition, or gains in efficiency, that outweigh possible adverse effects, such as undue Voting for this action: Chairman Greenspan and Governors concentration of resources, decreased or unfair Angell, Kelley, LaWare, and Mullins. Absent and not voting: Governor Seger. competition, conflicts of interests, or unsound banking practices." JENNIFER J. JOHNSON Associate Secretary of the Board The Board has previously determined that the activity of transmitting money to foreign countries is 4. See European-American Bancorp, 63 Federal Reserve Bulletin 595 (1977); Skandinaviska Enskilda Banken, 69 Federal Reserve 1. Asset data are as of September 30, 1990. Bulletin 42 (1983); Bergen Bank A/S, 72 Federal Reserve Bulletin 200 2. Provisions in the Transmission of Money Abroad chapter of the (1986); Bergen Bank A/S, 76 Federal Reserve Bulletin 457 (1990). California financial code authorize and regulate the proposed activity. These cases involved state-chartered companies organized under Cal. Fin. Code §§ 1800 et seq. (West 1989 & Supp. 1991). The Article XII of the New York Banking Law that were authorized to California banking office granted approval of Company's license to "receive money for transmission and to transmit the same from the engage in money transmission activities on January 14, 1991. United States to any foreign country and from any foreign country to 3. Cal. Fin. Code § 1800.5(a)(1) (West Supp. 1991). the United States." N.Y. Banking Law § 508(3)(c) (McKinney 1990). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

272 Federal Reserve Bulletin • April 1991 The Royal Bank of Canada section 20 of the Glass-Steagall Act, and that revenue Montreal, Quebec, Canada derived from this activity is not subject to the 10 percent revenue limitation on ineligible securities un- Order Approving Application to Act as a "Riskless derwriting and dealing.3 RBC has committed that Principal'' in Buying and Selling Securities Company will conduct its "riskless principal" activities using the same methods and procedures, and The Royal Bank of Canada, Montreal, Quebec, Can- subject to all of the prudential limitations approved by ada ("RBC"), a bank holding company within the the Board in the Bankers Trust and J.P. Morgan meaning of the Bank Holding Company Act ("BHC orders, as modified to reflect RBC's status as a foreign Act"), has applied for the Board's approval under bank, consistent with the framework adopted in the section 4(c)(8) of the BHC Act, 12 U.S.C. Canadian Imperial order.4 § 1843(c)(8), for its indirect subsidiary, RBC Dominion Consummation of this proposal would provide Securities Corporation, New York, New York ("Com- added convenience to RBC's customers by allowing pany"), to buy and sell securities on the order of the provision of a wider range of services by a single investors as a "riskless principal." entity. In addition, the Board expects that the de novo Notice of the application, affording interested per- entry of RBC into the market for these services would sons an opportunity to submit comments on the pro- increase the level of competition among providers of posal, has been published (56 Federal Register 530 these services. Under the framework established in (1991)). The time for filing comments has expired, and this and prior decisions, consummation of this prothe Board has considered the application and all posal is not likely to result in any significant adverse comments received in light of the public interest effects, such as undue concentration of resources, factors set forth in section 4(c)(8) of the BHC Act. decreased or unfair competition, conflicts of interests, RBC has total consolidated assets equivalent to or unsound banking practices. Accordingly, the Board approximately $107.7 billion.1 It owns a bank subsid- has determined that the performance of the proposed iary in San Juan, Puerto Rico, and operates branches activities by RBC can reasonably be expected to in Portland, Oregon, and New York, New York, and produce public benefits that would outweigh adverse effects under the proper incident to banking standard agencies in Miami, Florida, and Los Angeles, Califorof section 4(c)(8) of the BHC Act. nia. RBC has received Board approval to engage in a broad range of nonbanking activities, including engag- Based on the above, the Board has determined to ing through Company in underwriting and dealing in, approve RBC's application, subject to all of the terms to a limited extent, debt and equity securities that are and conditions set forth above and in the above-noted not eligible to be underwritten by a state member bank Board orders. The Board's determination is subject to ("ineligible securities").2 Company is and will con- all of the conditions set forth in the Board's Regulatinue to be a broker-dealer registered with the Securi- tion Y, including those in sections 225.4(d) and ties and Exchange Commission and subject to the 225.23(b), and to the Board's authority to require record-keeping, reporting, fiduciary standards, and modification or termination of the activities of a bank other requirements of the Securities Exchange Act of holding company or any of its subsidiaries as the 1934, the New York Stock Exchange, and the National Board finds necessary to assure compliance with, and Association of Securities Dealers. to prevent evasion of, the provisions of the BHC Act The Board has previously determined by order that, subject to certain prudential limitations established to address the potential for conflicts of interests, unsound banking practices or other adverse effects, the pro- 3. See J.P. Morgan and Company, Inc., 76 Federal Reserve posed "riskless principal" activities are so closely Bulletin 26 (1990) ("J.P. Morgan"); Bankers Trust New York Corporelated to banking as to be a proper incident thereto ration, 75 Federal Reserve Bulletin 829 (1989) ("Bankers Trust"). 4. In the Canadian Imperial order, in which the Board considered within the meaning of section 4(c)(8) of the BHC Act. and approved applications by foreign banks to engage in underwriting The Board also has determined that acting as agent in and dealing in all types of debt and equity securities, the Board purchasing and selling securities on the order of inves- modified the prudential framework imposed in J.P. Morgan & Co. Incorporated, The Chase Manhattan Corporation, Bankers Trust tors as a "riskless principal" does not constitute New York Corporation, and Citicorp, 75 Federal Reserve Bulletin 192 underwriting and dealing in securities for purposes of (1989), to account for the fact that the applicants were foreign banks that operate predominately outside the United States. The Board determined in those cases to adjust the funding and certain operational requirements of the framework previously established for those activ- 1. Data are as of October 31, 1990. ities in order to take into account principles of national treatment and 2. See Canadian Imperial Bank of Commerce, The Royal Bank of the Board's policy not to extend U.S. bank supervisory standards Canada, Barclays PLC, 76 Federal Reserve Bulletin 158 (1990) extraterritorially. See also The Toronto-Dominion Bank, 76 Federal ("Canadian Imperial"). Reserve Bulletin 573 (1990). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 273 and the Board's regulations and orders issued there- Notice of the applications, affording interested perunder. sons an opportunity to submit comments, has been This transaction shall not be consummated later duly published (56 Federal Register 1397 (1991)). The than three months after the effective date of this order, time for filing comments has expired, and the Board unless such period is extended for good cause by the has considered the applications and all comments Board or by the Federal Reserve Bank of New York, received in light of the factors set forth in sections 3(c) pursuant to delegated authority. and 4 of the BHC Act. By order of the Board of Governors, effective Feb- HSBC, with consolidated assets equivalent to apruary 11, 1991. proximately U.S. $144 billion, is the 27th largest banking organization in the world and the largest Voting for this action: Chairman Greenspan and Governors banking organization in Hong Kong.3 HSBC engages Angell, Kelley, and Mullins. Absent and not voting: Gover- in a broad range of banking and financial services nors Seger and La Ware. throughout the world through an extensive network of offices and subsidiaries. Through Kellett, Holdings, JENNIFER J. JOHNSON and Marine Midland, HSBC owns all of the shares of Associate Secretary of the Board Marine Midland Bank, the 30th largest bank in the United States, with total assets of $20.9 billion and Orders Issued Under Sections 3 and 4 of the total deposits of $17.3 billion.4 Bank Holding Company Act In the United States, in addition to the operations of Marine Midland, HSBC maintains eight branches in HSBC Holdings pic New York; a branch in each of Chicago, Seattle, and Hong Kong Portland, Oregon; a limited branch in both San Francisco and Los Angeles; an agency in Houston; and a Order Approving Formation of Bank Holding representative office in Orange County, California. In Company and Acquisition of Nonbank Subsidiaries addition, HSBC owns a majority of the shares of Hang Seng Bank Limited, Hong Kong ("Hang Seng"), HSBC Holdings pic, Hong Kong ("HSBC Holdings"), which maintains two branches in New York and a has applied for the Board's approval under section limited branch in San Francisco.5 3(a)(1) of the Bank Holding Company Act ("BHC HSBC Holdings, incorporated in the United King- Act") (12 U.S.C. § 1842(a)(1)), to become a bank dom, is currently an indirect, wholly owned subsidiary holding company by acquiring all of the voting shares of HSBC, whose principal business is to own and lease of The Hongkong and Shanghai Banking Corporation property in Thailand in which HSBC's bank premises Limited, Hong Kong ("HSBC"), a foreign bank and are currently located. HSBC Holdings proposes to bank holding company under the BHC Act, and acquire HSBC through an exchange of shares. Immethereby indirectly acquire all of the voting shares of diately after completion of the exchange, HSBC and Kellett N.V., Curacao, Netherlands Antilles its subsidiaries will remain in the same organizational ("Kellett"), HSBC Holdings B.V., Amsterdam, The structure as before the transaction, except that HSBC Netherlands ("Holdings"), Marine Midland Banks, Holdings will become the top-tier holding company. Inc., Buffalo, New York ("Marine Midland"), all bank The proposed transaction is intended to provide holding companies within the meaning of the BHC HSBC with the flexibility in the future to reorganize its Act, and Marine Midland Bank, N.A., Buffalo, New worldwide operations, including through a transfer of York ("Marine Midland Bank").i HSBC Holdings has also applied for the Board's approval under section 4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8)) to 3. Banking data are as of June 30, 1990. Worldwide ranking is as of acquire indirectly certain nonbanking subsidiaries of December 31, 1989. HSBC.2 4. Banking data are as of September 30, 1990. U.S. ranking is as of June 30, 1990. 5. HSBC and Hang Seng have both designated New York as their home states for purposes of section 5 of the International Banking Act 1. HSBC Holdings has also applied for the Board's approval under (12 U.S.C. § 3103). HSBC Holdings consequently would designate section 3 of the BHC Act (12 U.S.C. § 1842) to acquire indirectly New York as its home state for purposes of section 5 and the Board's warrants held by Marine Midland for up to 24.99 percent of the voting Regulation K (12 C.F.R. 211.22). Because the proposal represents shares of Statewide Bancorp, Toms River, New Jersey, a bank only a corporate restructuring and does not involve a merger with or holding company that owns and controls The First National Bank of acquisition by another foreign bank, HSBC Holdings's acquisition of Toms River, Toms River, and The First National Bank of New HSBC and its subsidiaries will not increase the number of foreign Jersey/Salem County, Penns Grove, New Jersey. banks with grandfather rights for interstate branches nor the number 2. A list of the nonbanking subsidiaries that HSBC Holdings has of grandfathered branches. Accordingly, the Board has determined proposed to acquire pursuant to section 4(c)(8) of the BHC Act is set that HSBC Holdings may succeed to HSBC's grandfathered forth in the Appendix. branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

274 Federal Reserve Bulletin • April 1991 Kellett, Holdings, and Marine Midland directly to essentially a corporate reorganization, the Board con- HSBC Holdings, for strategic, financial and manage- cludes that consummation of this proposal would not rial reasons. It is intended to establish a more suitable have any significantly adverse effect on competition in structure through which to acquire or combine with the provision of these services in any relevant market. other financial institutions in markets that are impor- Furthermore, there is no evidence in the record to tant to the long-term strategic plans of HSBC Holdings indicate that consummation of this proposal will result and HSBC. in undue concentration of resources, decreased or Because it does not engage in any activities other unfair competition, conflicts of interests, unsound than holding bank premises, HSBC Holdings does not banking practices, or any other significantly adverse have a banking presence in any market in which HSBC effects. Accordingly, the Board has determined that or its subsidiary banks are located. Therefore, con- the balance of public interest factors it must consider summation of the proposal would not have a substan- under section 4(c)(8) of the BHC Act is favorable and tially adverse effect on competition in any relevant consistent with approval of HSBC Holding's applicabanking market. tion to acquire the nonbanking subsidiaries of HSBC. Section 3 of the BHC Act requires in every case that HSBC Holdings will also acquire indirectly subsidiarthe Board consider the financial resources of the ies of HSBC and Marine Midland that operate under applicant organization. Upon consummation of the section 25 of the Federal Reserve Act (12 U.S.C. § 601 proposal, HSBC Holdings would have the same Tier 1 et seq.), and section 4(c)(14) of the BHC Act and total risk-based capital ratios as HSBC, which are (12 U.S.C. § 1843(c)(14)), as well as other permissible well above the minimum standards adopted by the investments held pursuant to the Board's Regula- Basle Supervisors Committee, as implemented by tion K. Considerations relating to these subsidiaries Hong Kong, as well as the Board's minimum stan- and investments are also consistent with approval. dards.6 In light of these considerations and other Based on the foregoing and other facts of record, undertakings reflected in the record, including that including all of the commitments made by HSBC HSBC Holdings has committed to maintain Marine Holdings, the Board has determined that consumma- Midland Bank among the more strongly capitalized tion of the proposed transaction would be consistent banking organizations of comparable size in the with the public interest. Accordingly, the Board has United States, the Board has determined that financial determined that the applications under sections 3 and factors are consistent with approval of the applica- 4 of the BHC Act should be, and hereby are, aptions. proved. The determinations as to the nonbanking The board of directors of HSBC will also serve as activities approved in this case are subject to all of the the board of directors of HSBC Holdings. Conse- conditions contained in Regulation Y, including those quently, considerations relating to managerial re- in sections 225.4(c) and 225.23(b)(3) (12 C.F.R. sources and future prospects are consistent with ap- 225.4(d) and 225.23(b)(3)), and to the Board's authorproval. The Board has also determined that ity to require such modification or termination of the considerations relating to the convenience and needs activities of a holding company or any of its subsidiarof the community to be served are consistent with ies as the Board finds necessary to assure compliance approval. with, or to prevent evasion of, the provisions and HSBC Holdings has applied, pursuant to section purposes of the BHC Act and the Board's regulations 4(c)(8) of the BHC Act, to acquire indirectly certain and orders issued thereunder. The transaction shall nonbanking subsidiaries of HSBC. The Board has not be consummated before the thirtieth calendar day determined by regulation or order that each of these following the effective date of this Order, or later than activities is permissible for bank holding companies three months after the effective date of this Order, under section 4(c)(8) of the BHC Act, and HSBC unless such period is extended for good cause by the Holdings proposes to conduct these activities in ac- Board or by the Federal Reserve Bank of New York, cordance with the Board's regulations and orders, acting pursuant to delegated authority. including all conditions and commitments made by By order of the Board of Governors, effective Feb- HSBC and its subsidiaries and relied on by the Board ruary 21, 1991. in approving those applications. Because HSBC Holdings does not currently conduct these activities in any Voting for this action: Chairman Greenspan and Governors market in which HSBC operates and the proposal is Angell, Kelley, La Ware, and Mullins. Absent and not voting: Governor Seger. 6. Financial data are as of June 30, 1990 and ratios were calculated JENNIFER J. JOHNSON under the guidelines for 1992 as set forth in the Board's Capital Adequacy Guidelines, 12 C.F.R. 225.25, App. A. Associate Secretary of the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 275 Appendix York Switch Corporation, Hackensack, New Jersey, which engages in providing data processing and re- Nonbanking Subsidiaries to be Acquired lated activities; TKM Mid-Americas Inc., Miami, Florida, which engages in providing trade finance American Interest Arbitrage Corporation, New York, services; U.S. Concord Inc., Norwalk, Connecticut, New York, which engages in buying and selling fixed which engages in providing commercial finance and income securities for affiliates; Carroll McEntee & leasing services; and Wardley Incorporated, New McGinley Incorporated, New York, New York, which York, New York, which engages in financial and engages in dealing in government obligations; CM&M investment advisory services, securities brokerage, Asset Management Company, Inc., New York, New and futures commission merchant activities. The York, which engages in providing financial advice or Board has determined that these activities are closely management services; CM&M Futures, Inc., New related to banking and permissible for bank holding York, New York, which engages in providing securi- companies. 12 C.F.R. 225.25(b)(1),(4),(5),(7),(8),(12), ties brokerage services and acting as a futures com- (15),(16),(18),(19) and the Board's Orders dated mission merchant; Concord Asset Management, Inc., March 16, 1979; April 27, 1981; October 21, 1982; New York, New York, which engages in providing August 15, 1983; May 5, 1984; December 11, 1984; commercial finance and leasing services; Concord March 5, 1986; November 21, 1986; March 4, 1987; Commercial Corporation, Woodcliff Lake, New Jer- July 14, 1987; August 17, 1987; January 24, 1989; and sey, which engages in providing commercial finance July 11, 1990. and leasing services; Concord Leasing Inc., Norwalk, Connecticut, which engages in providing commercial Orders Issued Under Bank Merger Act finance and leasing services; Delaware Credit Corp. (USA), Buffalo, New York, which engages in provid- Fleet Bank of Maine ing commercial mortgage banking and other financing Portland, Maine services; Intermarket Securities Corporation, New York, New York, which engages in trading in money Order Approving the Merger of Banks market instruments; Investors Arbitrage Corporation, New York, New York, which engages in providing Fleet Bank of Maine, Portland, Maine, has applied for investment or financial advice; James Capel Incorpo- the Board's approval under the Bank Merger Act rated, New York, New York, which engages in finan- (12 U.S.C. § 1828) to merge with Maine Savings Bank, cial and investment advisory services, securities bro- Portland, Maine ("Bank"), and thereby to establish kerage, and futures commission merchant activities; a branches pursuant to section 9 of the Federal Reserve 4.69 percent shareholding in Liberty Brokerage Inc., Act (12 U.S.C. § 321). New York, New York, which engages in providing Public notice of the applications before the Board is brokerage services for dealers in government securi- not required by the Act, and in view of the emergency ties; Marine Midland Business Loans, Inc., Buffalo, situation, the Board has not followed its normal prac- New York, which engages in providing asset-based tice of affording interested parties the opportunity to financing services; Marine Midland Capital Markets submit comments and views. In view of the emergency Corporation, New York, New York, which engages in situation involving Bank, the Maine Superintendent providing securities brokerage and underwriting ser- for the Bureau of Banking has recommended immedivices; Marine Midland Leasing Corporation, Buffalo, ate action by the Board to prevent the probable failure New York, which engages in providing equipment of Bank. leasing services; Marine Midland Mortgage (U.S.A.), In connection with the applications, the Secretary of Inc., Buffalo, New York, which engages in providing the Board has taken into consideration the competitive residential first mortgage loans; Marine Midland Pay- effects of the proposed transaction, the financial and ment Services Inc., Buffalo, New York, which en- managerial resources and future prospects of the gages in providing the issuance of payment instru- banks concerned, and the convenience and needs of ments; Marine Midland Services Corporation, Buffalo, the communities to be served. On the basis of the New York, which engages in providing commercial information before the Board, the Secretary of the lending and equipment leasing; Marinvest Inc., New Board finds that an emergency situation exists so as to York, New York, which engages in providing invest- require that the Secretary of the Board act immediment advisory services; Marmid Life Insurance Com- ately pursuant to the provisions of section 18(c)(3) of pany, Tempe, Arizona, which engages in providing the Federal Deposit Insurance Act (12 U.S.C. credit life and credit accident and health insurance as § 1828(c)(3)) in order to safeguard depositors of Bank. a reinsurer; an 11.12 percent shareholding in New Having considered the record of these applications in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

276 Federal Reserve Bulletin • April 1991 light of the factors contained in the Bank Merger Act effective date of this Order unless such period is and the Federal Reserve Act, the Secretary of the extended for good cause by the Board or by the Board has determined that consummation of the trans- Federal Reserve Bank of Boston acting pursuant to action would be in the public interest and that the delegated authority. applications should be approved on a basis that would By order of the Secretary of the Board acting not preclude immediate consummation of the pro- pursuant to delegated authority for the Board of Govposal. On the basis of these considerations, the appli- ernors, effective February 1, 1991. cations are approved. The transaction may be consummated immediately WILLIAM W. WILES but in no event later than three months after the Secretary of the Board 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 American Interstate American Federal Savings Walnut State Bank, February 11, 1991 Bancorporation, Inc., Association of Iowa, Walnut, Iowa Walnut, Iowa Des Moines, Iowa (Atlantic, Iowa Branch) Ankeny Investment Co., American Federal Savings Ankeny State Bank, February 11, 1991 Ankeny, Iowa Association of Iowa, Ankeny, Iowa Des Moines, Iowa (Ankeny, Iowa Branch) BancSecurity Corporation, American Federal Savings Security Bank February 11, 1991 Marshalltown, Iowa Association of Iowa, Kellogg-Sully, Des Moines, Iowa Kellogg, Iowa (Newton, Iowa Branch) BancSecurity Corporation, American Federal Savings Story County Bank February 11, 1991 Marshalltown, Iowa Association of Iowa, and Trust, Des Moines, Iowa Story City, Iowa (Ames, Iowa Branch) Bank America Corporation, Pima Federal Savings and Bank of America February 15, 1991 San Francisco, California Loan Association, Arizona, Tucson, Arizona Phoenix, Arizona Brenton Banks, Inc., American Federal Savings Brenton National February 11, 1991 Des Moines, Iowa Association, of Iowa, Bank of Perry, Des Moines, Iowa Perry, Iowa (Perry, Iowa Branch) Community Grain Company, American Federal Savings Iowa Savings Bank, February 11, 1991 Coon Rapids, Iowa Association, of Iowa, Coon Rapids, Iowa Des Moines, Iowa (Carroll, Iowa Branch) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 277 FIRREA Orders—Continued Acquired Surviving Approval Bank Holding Company Thrift Bank(s) Date First Bancorp of Kansas, Mid Kansas Savings and First National Bank February 15, 1991 Wichita, Kansas Loan Association, in Wichita, F.A., Wichita, Kansas Wichita, Kansas (Wichita, Kansas Branches) First Liberty Bancorp, American Federal Savings Liberty Bank and February 11, 1991 West Des Moines, Iowa Association, of Iowa, Trust, Des Moines, Iowa Mason City, Iowa (Clear Lake, Iowa Branch) Fourth Financial Corporation, Mid Kansas Savings and BANK IV Wichita, February 15, 1991 Wichita, Kansas Loan Association, Wichita, Kansas F.A., BANK IV Garden Wichita, Kansas City, N.A., Garden City, Kansas HNB Corporation, Mid Kansas Savings and The Home National February 15, 1991 Arkansas City, Kansas Loan Association, Bank of Arkansas F.A., City, Wichita, Kansas Arkansas City, (Arkansas City, Kansas Kansas Branch) Ida Grove Bancshares, Inc., American Federal Savings Ida County State February 11, 1991 Ida Grove, Iowa Association of Iowa, Bank, Des Moines, Iowa Ida Grove, Iowa (Denison, Iowa Branch) Metro Bancorporation, American Federal Savings Waterloo Savings February 11, 1991 Waterloo, Iowa Association of Iowa, Bank, Des Moines, Iowa Waterloo, Iowa (Cedar Falls, Iowa Branch) National City Corporation, Gem Savings Association, First National Bank, February 25, 1991 Cleveland, Ohio Dayton, Ohio Dayton, Ohio Northwood Financial Services American Federal Savings Northwood State February 11, 1991 Corporation, Association of Iowa, Bank, Northwood, Iowa Des Moines, Iowa Northwood, Iowa (Mason City, Iowa Branch) South Carolina National Security Federal Savings, The South Carolina February 15, 1991 Corporation, F.S.B., National Bank, Columbia, South Carolina Columbia, South Charleston, South Carolina Carolina Union Bancshares, Inc., Mid Kansas Savings and Union National Bank February 15, 1991 Wichita, Kansas Loan Association, of Wichita, F.A., Wichita, Kansas Wichita, Kansas (Derby, Kansas Branch) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

278 Federal Reserve Bulletin • April 1991 FIRREA Orders—Continued Acquired Surviving Approval Bank Holding Company Thrift Bank(s) Date Valley Financial Services, Inc., Northern Indiana Savings Valley American February 15, 1991 Mishawaka, Indiana Association, FA., Bank & Trust Chesterton, Indiana Company, Mishawaka, Indiana APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 3 Effective Applicant(s) Bank(s) Date Bank America Corporation, Bank of America New Mexico, N.A., February 25, 1991 San Francisco, California Albuquerque, New Mexico Section 4 Effective Applicant(s) Bank(s) Date Bank America Corporation, BAP Interim Federal Savings Bank, February 15, 1991 San Francisco, California Tucson, Arizona South Carolina National Corporation, SCNC Interim Federal Savings February 15, 1991 Columbia, South Carolina Bank II, Columbia, South Carolina APPLICATIONS APPROVED UNDER BANK MERGER ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Effective Applicant(s) Bank(s) ^ Fleet Bank of Maine, Maine Savings Bank, February 4, 1991 Portland, Maine Portland, Maine Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 279 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 Anchor Bancorp, Inc., Heritage National Bank, Minneapolis February 8, 1991 Wayzata, Minnesota North St. Paul, Minnesota Bethany Bankshares, Inc., The Bethany Trust Kansas City February 15, 1991 Bethany, Missouri Company, Bethany, Missouri Breckenridge Bancshares The Centennial Bank, St. Louis January 30, 1991 Company, St. Ann, Missouri St. Ann, Missouri Button Gwinnett Bancorp, Inc., Button Gwinnett Savings Atlanta February 11, 1991 Norcross, Georgia Bank, FSB, Norcross, Georgia Caledonia Financial Corporation, State Bank of Caledonia, Chicago February 20, 1991 Caledonia, Michigan Caledonia, Michigan Cedar Creek Bancshares, Inc., Cedar Creek Bank, Dallas February 13, 1991 Seven Points, Texas Seven Points, Texas Central of Kansas, Inc., Herington Bancshares, Kansas City February 20, 1991 Junction City, Kansas Inc., Herington, Kansas First National Bancorp of The First National Bank St. Louis January 30, 1991 Columbia, Inc., of Columbia, Columbia, Kentucky Columbia, Kentucky First of Fort Morgan, Inc., Heartland Community Kansas City February 20, 1991 Fort Morgan, Colorado Bancshares, Inc., Fort Morgan, Colorado First Community Bancshares, Inc., Fort Morgan, Colorado First State Bancorp of The Atwood State Bank, Chicago February 6, 1991 Monticello, Inc., At wood, Illinois Monticello, Illinois Ford Bank Group Holdings, Inc., MBank Waco, N.A., Dallas February 11, 1991 Wilmington, Delaware Waco, Texas Ford Bank Group, Inc., MBank Waco, N.A., Dallas February 11, 1991 Lubbock, Texas Waco, Texas Illiopolis Bancorporation, Farmers State Bank and Chicago February 15, 1991 Incorporated, Trust, Springfield, Illinois Illiopolis, Illinois Landmark Bancshares, Inc., Landmark Bank-Mid Dallas January 30, 1991 Euless, Texas Cities, Euless, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

280 Federal Reserve Bulletin • April 1991 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date Liberty Bancorporation, Bennett Bancshares, Inc., Chicago February 1, 1991 Durant, Iowa Bennett, Iowa Meader Insurance Agency, Coffey County Kansas City February 1, 1991 Waverly, Kansas BankShares, Inc., Burlington, Kansas Mercantile Bancorp, Inc., Marine Trust Company of St. Louis February 15, 1991 Quincy, Illinois Carthage, Carthage, Illinois Mid-America National Bancorp, Mid-America National Chicago February 14, 1991 Inc., Bank of Chicago, Chicago, Illinois Chicago, Illinois Security Chicago Corp., Chicago, Illinois North Park Bancshares, Inc. North Park State Bank, Kansas City January 30, 1991 Walden, Colorado Walden, Colorado Park Cities Corporation, First National Bank of Dallas February 6, 1991 Wilmington, Delaware Park Cities, Dallas, Texas Park Cities Bancshares, Inc. Park Cities Corporation, Dallas February 6, 1991 Dallas, Texas Wilmington, Delaware First National Bank of Park Cities, Dallas, Texas Pilot Grove Savings Bank Pilot Bancorp, Inc., Chicago January 30, 1991 Employee Stock Ownership Pilot Grove, Iowa Plan, Pilot Grove, Iowa Pinnacle Banc Group, Inc., The Henry County Bank, Chicago February 20, 1991 Oak Brook, Illinois Green Rock, Illinois Southwestern Wisconsin Highland State Bank, Chicago January 25, 1991 Bancshares, Inc., Highland, Wisconsin Highland, Wisconsin TFBC Acquisition Corporation, Tahoka First Bancorp, Dallas February 13, 1991 Tahoka, Texas Inc., Dallas, Texas Cedar Creek Bank, Seven Points, Texas First National Bank of Tahoka, Tahoka, Texas Worthington Bancorporation, State Bank of Chicago February 7, 1991 Farley, Iowa Worthington, Worthington, Iowa Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 281 Section 4 Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date 1st Source Corporation, Mortgage Acquisition Chicago February 1, 1991 South Bend, Indiana Company, South Bend, Indiana The Dai-Ichi Kangyo Bank, First Fidelity San Francisco January 30, 1991 Limited, Bancorporation, Tokyo,Japan Newark, New Jersey First Bank System, Inc., Fairmont Lakes Insurance Minneapolis February 19, 1991 Minneapolis, Minnesota Agency, Fairmont, Minnesota The Kyowa Bank, Limited, Saitama Bank Trust San Francisco February 8, 1991 Tokyo,Japan Company of New York, New York, New York Lincolnland Bancorp, Inc., Ayer-Wagoner Insurance St. Louis January 30, 1991 Dale, Indiana Agency, Inc., Rockport, Indiana Deal Insurance Agency, Inc., Rockport, Indiana Marshall & Ilsley Corporation, Provident Bank of Chicago February 5, 1991 Milwaukee, Wisconsin Maryland, Baltimore, Maryland Norwest Corporation, Coast Program, Inc., Minneapolis February 13, 1991 Minneapolis, Minnesota Signal Hill, California Norwest Financial Services, Inc. ABQ Federal Savings Des Moines, Iowa Bank, Norwest Financial, Inc., Albuquerque, New Des Moines, Iowa Mexico Skandinaviska Enskilda Banken, Scandinavian Bank Group New York February 1, 1991 Stockholm, Sweden pic, London, England South Carolina National Old Republic Bancorp, Richmond January 31, 1991 Corporation, Inc., Columbia, South Carolina Rocky Mount, North Carolina Old Republic Savings Bank, Inc., Rocky Mount, North Carolina Valley Financial Services, Inc. Northern Indiana Savings Chicago February 15, 1991 Mishawaka, Indiana Association, F.A., Chesterton, Indiana Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

282 Federal Reserve Bulletin • April 1991 PENDING CASES INVOLVING THE BOARD OF issuing orders of prohibition. Awaiting scheduling of GOVERNORS oral argument. BancTEXAS Group, Inc. v. Board of Governors, No. CA 3-90-0236-R (N.D. Texas, filed February This list of pending cases does not include suits 2, 1990). Suit for preliminary injunction enjoining against the Federal Reserve Banks in which the Board the Board from enforcing a temporary order to cease of Governors is not named a party. and desist requiring injection of capital into plaintiff's subsidiary banks under the Board's source of Fields v. Board of Governors, No. 3:91CV069 (N.D. strength doctrine. District court granted preliminary Ohio, filed February 5, 1991). Appeal of denial of injunction on June 5, 1990, in light of MCorp v. request for information under the Freedom of Infor- Board of Governors, 900 F.2d 852 (5th Cir. 1990). mation Act. On December 21, 1990, the action was dismissed by State of Illinois v. Board of Governors, No. 90-3824 agreement of the parties. (7th Circuit, appeal filed December 19, 1990). Ap- Rutledge v. Board of Governors, No. 90-7599 (11th peal of injunction restraining the Board from provid- Cir., filed August 21, 1990). Appeal of district court ing state examination materials in response to a grant of summary judgment for defendants in tort Congressional subpoena. On November 30, 1990, suit challenging Board and Reserve Bank supervithe U.S. District Court for the Northern District of sory actions. The Court of Appeals summarily af- Illinois issued a preliminary injunction preventing firmed the lower court on January 17, 1991. the Board and the Chicago Reserve Bank from Kaimowitz v. Board of Governors, No. 90-3067 (11th providing documents relating to the state examina- Cir., filed January 23, 1990). Petition for review of tion in response to the subpoena. The House Com- Board order dated December 22, 1989, approving mittee on Banking, Finance and Urban Affairs has application by First Union Corporation to acquire appealed the injunction. Florida National Banks. Petitioner objects to ap- Citicorp v. Board of Governors, No. 90-4124 (2d proval on Community Reinvestment Act grounds. Circuit, filed October 4, 1990). Petition for review of Babcock and Brown Holdings, Inc. v. Board of Gov- Board order requiring Citicorp to terminate certain ernors, No. 89-70518 (9th Cir., filed November 22, insurance activities conducted pursuant to Delaware 1989). Petition for review of Board determination law by an indirect nonbank subsidiary. The Delathat a company would control a proposed insured ware Bankers Association and the State of Delaware bank for purposes of the Bank Holding Company have intervened on behalf of petitioners, and insur- Act. Awaiting scheduling of oral argument. ance trade associations have intervened on behalf of Consumers Union of U.S., Inc. v. Board of Goverthe Board in the action. Oral argument was heard on nors, No. 90-5186 (D.C. Cir., filed June 29, 1990). February 7, 1991. Appeal of District Court decision upholding amend- Stanley v. Board of Governors, No. 90-3183 (7th ments to Regulation Z implementing the Home Circuit, filed October 3, 1990). Petition for review of Equity Loan Consumer Protection Act. Oral argu- Board order imposing civil money penalties on five ment was heard on February 20, 1991. former bank holding company directors. Synovus Financial Corp. v. Board of Governors, Sibille v. Federal Reserve Bank of New York and No. 89-1394 (D.C. Cir., filed June 21, 1989). Peti- Board of Governors, No. 90-CIV-5898 (S.D. New tion for review of Board order permitting relocation York, filed September 12, 1990). Appeal of denial of of a bank holding company's national bank subsid- Freedom of Information Act request. iary from Alabama to Georgia. Oral argument was Kuhns v. Board of Governors, No. 90-1398 (D.C. held on October 11, 1990. On December 10, the Cir., filed July 30, 1990). Petition for review of Justice Department filed a brief on behalf of the Board order denying request for attorney's fees Board and the Office of the Comptroller of the pursuant to Equal Access to Justice Act. Oral argu- Currency in response to a request from the court ment was heard on February 15, 1991. regarding an issue in the case. May v. Board of Governors, No. 90-1316 (D.C. Cir., MCorp v. Board of Governors, No. 89-2816 (5th Cir., filed July 27, 1990). Appeal of District Court order filed May 2, 1989). Appeal of preliminary injunction dismissing plaintiff's action under Freedom of Inforagainst the Board enjoining pending and future mation and Privacy Acts. Board's motion for sumenforcement actions against a bank holding commary affirmance filed October 12, 1990. pany now in bankruptcy. On May 15,1990, the Fifth Burke v. Board of Governors, No. 90-9509 (10th Cir- Circuit vacated the district court's order enjoining cuit, filed February 27, 1990). Petition for review of the Board from proceeding with enforcement ac- Board orders assessing civil money penalties and tions based on section 23A of the Federal Reserve Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 283 Act, but upheld the district court's order enjoining WRITTEN AGREEMENTS APPROVED BY FEDERAL such actions based on the Board's source-of- RESERVE BANKS strength doctrine. 900 F.2d 852 (5th Cir. 1990). On December 10, both parties filed petitions for certio- The Buffalo Bank rari in the Supreme Court, Nos. 90-913, 90-914. Eleanor, West Virginia The petitions are pending. MCorp v. Board of Governors, No. CA3-88-2693 The Federal Reserve Board announced on February (N.D. Tex., filed October 10, 1988). Application for 13, 1991, the execution of a Written Agreement beinjunction to set aside temporary cease and desist tween the Federal Reserve Bank of Richmond, the orders. Stayed pending outcome of MCorp v. Board Commissioner of Banking, State of West Virginia, and of Governors, 900 F.2d 852 (5th Cir. 1990). The Buffalo Bank, Eleanor, West Virginia. White v. Board of Governors, No. CU-S-88-623-RDF (D. Nev., filed July 29, 1988). Age discrimination complaint. Board's motion to dismiss or for sum- Cosmopolitan Bancorp, Inc. mary judgment was denied on January 3, 1991. Chicago, Illinois Awaiting trial date. The Federal Reserve Board announced on February FINAL ENFORCEMENT ORDERS ISSUED BY THE 13, 1991, the execution of a Written Agreement be- BOARD OF GOVERNORS tween the Federal Reserve Bank of Chicago and Michael J. Bonk Cosmopolitan Bancorp, Inc., Chicago, Illinois. River Rouge, Michigan The Federal Reserve Board announced on February Equimark Corporation 13, 1991, the issuance of an Order of Prohibition Pittsburgh, Pennsylvania against Michael J. Bonk, a former director of River Rouge Savings Bank, River Rouge, Michigan. The Federal Reserve Board announced on February Credit and Commerce American Holdings, 13, 1991, the execution of a Written Agreement be- N.V. tween the Federal Reserve Bank of Cleveland, the Department of Banking, Commonwealth of Pennsyl- Netherlands Antilles vania, and Equimark Corporation, Pittsburgh, Penn- The Federal Reserve Board announced on February sylvania. 20, 1991, the issuance of an Order against Credit and Commerce American Holdings, N.V., Netherlands Antilles, the parent holding company of First Ameri- First Lehigh Corporation can Bankshares, Inc., Washington, D.C. Walnutport, Pennsylvania Sun City Bank The Federal Reserve Board announced on February Sun City, Arizona 13, 1991, the execution of a Written Agreement between the Federal Reserve Bank of Philadelphia, the The Federal Reserve Board announced on February Department of Banking, Commonwealth of Pennsyl- 15, 1991, the issuance of a Cease and Desist Order vania, and First Lehigh Corporation, Walnutport, against the Sun City Bank, Sun City, Arizona. Pennsylvania. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

284 Membership of the Board of Governors of the Federal Reserve System, 1913-91 APPOINTIVE MEMBERS1 Federal Reserve Date of initial Other dates and information relating Name District oath of office to membership2 Charles S. Hamlin Boston Aug. 10, 1914 Reappointed in 1916 and 1926. Served until Feb. 3, 1936.3 Paul M. Warburg... .New York do. Term expired Aug. 9, 1918. Frederic A. Delano .Chicago do. Resigned July 21, 1918. W.P.G. Harding .Atlanta do. Term expired Aug. 9, 1922. Adolph C. Miller.... .San Francisco do. Reappointed in 1924. Reappointed in 1934 from the Richmond District. Served until Feb. 3, 1936.3 Albert Strauss New York .Oct. 26, 1918 Resigned Mar. 15, 1920. Henry A. Moehlenpah Chicago.... .Nov. 10, 1919 Term expired Aug. 9, 1920. Edmund Piatt New York .June 8, 1920 Reappointed in 1928. Resigned Sept. 14, 1930. David C. Wills Cleveland ... .Sept. 29, 1920 Term expired Mar. 4, 1921. John R. Mitchell Minneapolis .May 12, 1921 Resigned May 12, 1923. Milo D. Campbell Chicago .Mar. 14, 1923 Died Mar. 22, 1923. Daniel R. Crissinger Cleveland ... .May 1, 1923 Resigned Sept. 15, 1927. George R. James St. Louis.... .May 14, 1923 Reappointed in 1931. Served until Feb. 3, 1936/ Edward H. Cunningham...Chicago do Died Nov. 28, 1930. Roy A. Young Minneapolis . .Oct. 4, 1927 Resigned Aug. 31, 1930. Eugene Meyer New York ... .Sept. 16, 1930 Resigned May 10, 1933. Way land W. Magee Kansas City, .May 18, 1931 Term expired Jan. 24, 1933. Eugene R. Black Atlanta .May 19, 1933 Resigned Aug. 15, 1934. M.S. Symczak Chicago June 14, 1933 Reappointed in 1936 and 1948. Resigned May 31, 1961. J.J. Thomas Kansas City... do Served until Feb. 10, 1936.3 Marriner S. Eccles San Francisco .Nov. 15, 1934 Reappointed in 1936, 1940, and 1944. Resigned July 14, 1951. Joseph A. Broderick New York .. .Feb. 3, 1936 Resigned Sept. 30, 1937. John K. McKee Cleveland ... do Served until Apr. 4, 1946.3 Ronald Ransom Atlanta do Reappointed in 1942. Died Dec. 2, 1947. Ralph W. Morrison Dallas .Feb. 10, 1936 Resigned July 9, 1936. Chester C. Davis Richmond... .June 25, 1936 Reappointed in 1940. Resigned Apr. 15, 1941. Ernest G. Draper New York .. .Mar. 30, 1938 Served until Sept. 1, 1950.3 Rudolph M. Evans Richmond... .Mar. 14, 1942 Served until Aug. 13, 1954.3 James K. Vardaman, Jr. ..St. Louis.... .Apr. 4, 1946 Resigned Nov. 30, 1958. Lawrence Clayton Boston .Feb. 14,1947 Died Dec. 4, 1949. Thomas B. McCabe Philadelphia .Apr. 15, 1948 Resigned Mar. 31, 1951. Edward L. Norton Atlanta .Sept. 1, 1950 Resigned Jan. 31, 1952. Oliver S. Powell Minneapolis do Resigned June 30, 1952. Wm. McC. Martin, Jr New York .. .April 2, 1951 Reappointed in 1956. Term expired Jan. 31, 1970. A.L. Mills, Jr San Francisco .Feb. 18, 1952 Reappointed in 1958. Resigned Feb. 28, 1965. J.L. Robertson Kansas City... do Reappointed in 1964. Resigned Apr. 30, 1973. C. Canby Balderston Philadelphia ... .Aug. 12, 1954 Served through Feb. 28, 1966. Paul E. Miller Minneapolis ... .Aug. 13, 1954 Died Oct. 21, 1954. Chas. N. Shepardson Dallas .Mar. 17, 1955 Retired Apr. 30, 1967. G.H. King, Jr Atlanta .Mar. 25, 1959 Reappointed in 1960. Resigned Sept. 18, 1963. George W. Mitchell Chicago.... .Aug. 31, 1961 Reappointed in 1962. Served until Feb. 13, 1976.3 J. Dewey Daane Richmond. .Nov. 29, 1963 Served until Mar. 8, 1974.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

285 Federal Reserve Date of initial Other dates and information relating Name District oath of office to membership2 Sherman J. Maisel San Francisco Apr. 30, 1965 Served through May 31, 1972. Andrew F. Brimmer Philadelphia Mar. 9, 1966 Resigned Aug. 31, 1974. William W. Sherrill ...Dallas May 1, 1967 Reappointed in 1968. Resigned Nov. 15, 1971. Arthur F. Burns New York Jan. 1, 1970 Term began Feb. 1, 1970. Resigned Mar. 31, 1978. John E. Sheehan St. Louis Jan. 4, 1972 Resigned June 1, 1975. Jeffrey M. Bucher San Francisco June 5, 1972 Resigned Jan. 2, 1976. Robert C. Holland Kansas City June 11, 1973 Resigned May 15, 1976. Henry C. Wallich Boston Mar. 8, 1974 Resigned Dec. 15, 1986. Philip E. Coldwell Dallas Oct. 29, 1974 Served through Feb. 29, 1980. Philip C. Jackson, Jr Atlanta July 14, 1975 Resigned Nov. 17, 1978. J. Charles Partee Richmond Jan. 5, 1976 Served until Feb. 7, 1986.3 Stephen S. Gardner Philadelphia Feb. 13, 1976 Died Nov. 19, 1978. David M. Lilly Minneapolis June 1, 1976 Resigned Feb. 24, 1978. G. William Miller San Francisco Mar. 8, 1978 Resigned Aug. 6, 1979. Nancy H. Teeters Chicago Sept. 18, 1978 Served through June 27, 1984. Emmett J. Rice New York June 20, 1979 Resigned Dec. 31, 1986. Frederick H. Schultz Atlanta July 27, 1979 Served through Feb. 11, 1982. Paul A. Volcker Philadelphia Aug. 6, 1979 Resigned August 11, 1987. Lyle E. Gramley Kansas City May 28, 1980 Resigned Sept. 1, 1985. Resigned April 30, 1986. Preston Martin San Francisco Mar. 31, 1982 Resigned March 11, 1991 Martha R. Seger Chicago July 2, 1984 Wayne D. Angell Kansas City Feb. 7, 1986 Manuel H. Johnson Richmond Feb. 7, 1986 Resigned August 3, 1990. H. Robert Heller San Francisco Aug. 19, 1986 Resigned July 31, 1989. Edward W. Kelley, Jr Dallas May 26, 1987 Reappointed in 1990. Alan Greenspan New York Aug. 11, 1987 John P. LaWare Boston Aug. 15, 1988 David W. Mullins, Jr St. Louis May 21, 1990 Chairmen4 Vice Chairmen4 Charles S. Hamlin Aug. 10, 1914-Aug. 9, 1916 Frederic A. Delano Aug. 10, 1914-Aug. 9, 1916 W.P.G. Harding Aug. 10, 1916-Aug. 9, 1922 Paul M. Warburg Aug. 10, 1916-Aug. 9, 1918 Daniel R. Crissinger May 1, 1923-Sept. 15, 1927 Albert Strauss Oct. 26, 1918-Mar. 15, 1920 Roy A. Young Oct. 4, 1927-Aug. 31, 1930 Edmund Piatt July 23, 1920-Sept. 14, 1930 Eugene Meyer Sept. 16, 1930-May 10, 1933 J.J. Thomas Aug. 21, 1934-Feb. 10, 1936 Eugene R. Black May 19, 1933-Aug. 15, 1934 Ronald Ransom Aug. 6, 1956-Dec. 2, 1947 Marriner S. Eccles Nov. 15, 1934—Jan. 31, 1948 C. Canby Balderston Mar. 11, 1955-Feb. 28, 1966 Thomas B. McCabe Apr. 15, 1948-Mar. 31, 1951 J.L. Robertson Mar. 1, 1966-Apr. 30, 1973 Wm. McC. Martin, Jr. ..Apr. 2, 1951-Jan. 31, 1970 George W. Mitchell May 1, 1973-Feb. 13, 1976 Arthur F. Burns Feb. 1, 1970-Jan. 31, 1978 Stephen S. Gardner Feb. 13, 1976-Nov. 19, 1978 G. William Miller Mar. 8, 1978-Aug. 6, 1979 Frederick H. Schultz ....July 27, 1979-Feb. 11, 1982 Paul A. Volcker Aug. 6, 1979-Aug. 11, 1987 Preston Martin Mar 31, 1982-Mar. 31, 1986 Alan Greenspan Aug. 11, 1987- Manuel H. Johnson Aug 4, 1986-Aug. 3, 1990 EX-OFFICIO MEMBERS1 Secretaries of the Treasury Comptrollers of the Currency W.G. McAdoo Dec. 23, 1913-Dec. 15, 1918 John Skelton Williams...Feb. 2, 1914-Mar. 2, 1921 Carter Glass Dec. 16, 1918-Feb. 1, 1920 Daniel R. Crissinger Mar. 17, 1921-Apr. 30, 1923 David F. Houston Feb. 2, 1920-Mar. 3, 1921 Henry M. Dawes May 1, 1923-Dec. 17, 1924 Andrew W. Mellon Mar. 4, 1921-Feb. 12, 1932 Joseph W. Mcintosh Dec. 20, 1924-Nov. 20, 1928 Ogden L. Mills Feb. 12, 1932-Mar. 4, 1933 J.W. Pole Nov. 21, 1928-Sept. 20, 1932 William H. Woodin Mar. 4, 1933-Dec. 31, 1933 J.F.T. O'Connor May 11, 1933-Feb. 1, 1936 Henry Morgenthau Jr. ...Jan. 1, 1934-Feb. 1, 1936 1. Under the provisions of the original Federal Reserve Act, the composed of seven appointive members; that the Secretary of the Federal Reserve Board was composed of seven members, including Treasury and the Comptroller of the Currency should continue to five appointive members, the Secretary of the Treasury, who was serve as members until Feb. 1, 1936, or until their successors were ex-officio chairman of the Board, and the Comptroller of the Cur- appointed and had qualified; and that thereafter the terms of members rency. The original term of office was ten years, and the five original should be fourteen years and that the designation of Chairman and appointive members had terms of two, four, six, eight, and ten years Vice Chairman of the Board should be for a term of four years. respectively. In 1922 the number of appointive members was in- 2. Date after words "Resigned" and "Retired" denotes final day of creased to six, and in 1933 the term of office was increased to twelve service. years. The Banking Act of 1935, approved Aug. 23, 1935, changed the 3. Successor took office on this date. name of the Federal Reserve Board to the Board of Governors of the 4. Chairman and Vice Chairman were designated Governor and Federal Reserve System and provided that the Board should be Vice Governor before Aug. 23, 1935. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1 Financial and Business Statistics CONTENTS WEEKLY REPORTING COMMERCIAL BANKS Domestic Financial Statistics Assets and liabilities A19 All reporting banks A20 Banks in New York City A21 Branches and agencies of foreign banks MONEY STOCK AND BANK CREDIT A3 Reserves, money stock, liquid assets, and debt FINANCIAL MARKETS measures A4 Reserves of depository institutions, Reserve Bank A22 Commercial paper and bankers dollar credit acceptances outstanding A5 Reserves and borrowings—Depository A22 Prime rate charged by banks on short-term institutions business loans A6 Selected borrowings in immediately available A23 Interest rates-money and capital markets funds—Large member banks A24 Stock market—Selected statistics A25 Selected financial institutions-Selected assets and liabilities POLICY INSTRUMENTS A7 Federal Reserve Bank interest rates FEDERAL FINANCE A8 Reserve requirements of depository institutions A9 Federal Reserve open market transactions All Federal fiscal and financing operations A28 U.S. budget receipts and outlays A29 Federal debt subject to statutory limitation A29 Gross public debt of U. S. Treasury - Types FEDERAL RESERVE BANKS and ownership A30 U.S. government securities A10 Condition and Federal Reserve note statements dealers—Transactions All Maturity distribution of loan and security A31 U.S. government securities dealers—Positions holdings and financing A32 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 A33 New security issues—State and local A16 Loans and securities-All commercial banks governments and corporations A34 Open-end investment companies-Net sales and asset position COMMERCIAL BANKING INSTITUTIONS A34 Corporate profits and their distribution A34 Total nonfarm business expenditures on new A17 Major nondeposit funds plant and equipment A18 Assets and liabilities, last-Wednesday-of-month A35 Domestic finance companies-Assets and series liabilities and business credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • April 1991 Domestic Financial Statistics—Continued A56 Foreign branches of U. S. banks - Balance sheet data A58 Selected U.S. liabilities to foreign official REAL ESTATE institutions A36 Mortgage markets A37 Mortgage debt outstanding REPORTED BY BANKS IN THE UNITED STATES CONSUMER INSTALLMENT CREDIT A58 Liabilities to and claims on foreigners A38 Total outstanding and net change A59 Liabilities to foreigners A39 Terms A61 Banks'own claims on foreigners A62 Banks' own and domestic customers' claims on foreigners FLOW OF FUNDS A62 Banks' own claims on unaffiliated foreigners A63 Claims on foreign countries—Combined A40 Funds raised in U.S. credit markets domestic offices and foreign branches A42 Direct and indirect sources of funds to credit markets A43 Summary of credit market debt outstanding REPORTED BY NONBANKING BUSINESS A44 Summary of credit market claims, by holder ENTERPRISES IN THE UNITED STATES A64 Liabilities to unaffiliated foreigners Domestic Nonfinancial Statistics A65 Claims on unaffiliated foreigners SELECTED MEASURES SECURITIES HOLDINGS AND TRANSACTIONS A45 Nonfinancial business activity-Selected A66 Foreign transactions in securities measures A67 Marketable U.S. Treasury bonds and A46 Labor force, employment, and unemployment notes—Foreign transactions A47 Output, capacity, and capacity utilization A48 Industrial production—Indexes and gross value A50 Housing and construction A51 Consumer and producer prices INTEREST AND EXCHANGE RATES A52 Gross national product and income A68 Discount rates of foreign central banks A53 Personal income and saving A68 Foreign short-term interest rates A69 Foreign exchange rates International Statistics A71 Guide to Tabular Presentation, Statistical Releases, and Special Tables SUMMARY STATISTICS A54 U.S. international transactions-Summary A55 U.S. foreign trade SPECIAL TABLE A55 U.S. reserve assets A55 Foreign official assets held at Federal Reserve A73 Terms of lending at commercial banks, Banks November 5-9, 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 1991 MMoonneettaarryy aanndd ccrreeddiitt aaggggrreeggaatteess Qlr Q2r Q3r Q4r Sept.r Oct/ Nov/ Dec/ Jan. Reserves of depository institutions2 1 Total 2.4 -1.4 -1.4 1.7 6.7 -9.4 33..11 1155..33 2.1 2 Required 2.5 -.9 -1.5 -.2 6.0 -8.3 1.1 .9 -8.3 3 Nonborrowed -3.9 -1.0 2.0 4.7 13.0 -5.2 6.8 13.5 -2.1 4 Monetary base3 8.2 7.4 8.6 9.0 13.5 7.6 5.4 7.7 17.6 Concepts of money, liquid assets, and debt4 ft Ml 5.2 4.2 3.7 3.4 7.8 -.9 3.1 3.1 2.3 6 M2 6.2 3.9 3.0 2.2 4.3 1.4 .2 1.7 .9 7 M3 2.9 1.3 1.6 1.3 1.5 .9 .7 .6 4.0 8 L 2.8 .9 2.3 2.8 6.0 .8 2.7 2.4 n.a. 9 Debt 6.1 6.9 7.4 6.4 6.7 5.0 6.9 6.5 n.a. Nontransaction components 10 In M25 6.5 3.8 2.7 1.8 3.2 2.2 -.7 1.2 .5 11 In M3 only6 -9.7 -9.1 -3.9 -2.6 -10.3 -1.4 2.7 -3.8 16.8 Time and savings deposits Commercial banks 12 Savings 9.6 4.1 5.9 5.2 3.7 6.7 3.6 7.3 12.6 13 MMDAs 10.4 9.6 8.2 3.5 4.5 1.9 2.2 3.2 -1.9 14 Small-denomination time7 7.8 12.7 15.5 11.5 9.4 18.0 2.9 17.3 6.8 15 Large-denomination time8, -.8 -2.9 -2.2 -8.5 -14.9 -12.6 1.9 -4.3 26.1 Thrift institutions 16 Savings 1.7 2.2 -3.3 -7.3 -5.5 -10.6 -5.6 -8.5 -4.0 17 MMDAs 2.7 .4 -7.7 -7.2 .9 -11.9 -5.5 -16.7 -.9 18 Small-denomination time7 -3.2 -7.4 -11.1 -7.9 -6.0 -13.2 -1.5 -13.6 -10.4 19 Large-denomination time8 -23.0 -28.7 -27.3 -26.3 -21.6 -24.7 -29.9 -39.3 -30.7 Money market mutual funds 20 General purpose and broker-dealer 18.1 4.7 10.0 11.2 12.2 8.8 4.6 16.4 29.7 21 Institution-only 9.1 14.8 21.6 30.4 23.2 35.1 9.0 51.8 42.0 Debt components4 22 Federal 6.8 9.7 14.3 11.8 11.1 6.2 16.2 12.9 n.a. 23 Nonfederal 6.0 6.1 5.3 4.7 5.3 4.6 4.0 4.4 n.a. 1. Unless otherwise noted, rates of change are calculated from average banking offices in the United Kingdom and Canada, and balances in both taxable amounts outstanding in preceding month or quarter. and tax-exempt, institution-only money market mutual funds. Excludes amounts 2. Figures incorporate adjustments for discontinuities associated with regula- held by depository institutions, the U.S. government, money market funds, and tory changes in reserve requirements. (See also table 1.20.) foreign banks and official institutions. Also subtracted is the estimated amount of 3. Seasonally adjusted, break-adjusted monetary base consists of (1) season- overnight RPs and Eurodollars held by institution-only money market mutual ally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally funds. adjusted currency component of the money stock, plus (3) (for all quarterly L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term reporters on the "Report of Transaction Accounts, Other Deposits and Vault Treasury securities, commercial paper and bankers acceptances, net of money Cash" and for all those weekly reporters whose vault cash exceeds their required market mutual fund holdings of these assets. reserves) the seasonally adjusted, break adjusted difference between current vault Debt: Debt of domestic nonfinancial sectors consists of outstanding credit cash and the amount applied to satisfy current reserve requirements. market debt of the U.S. government, state and local governments, and private 4. Composition of the money stock measures and debt is as follows: nonfinancial sectors. Private debt consists of corporate bonds, mortgages, con- Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults sumer credit (including bank loans), other bank loans, commercial paper, bankers of depository institutions; (2) travelers checks of nonbank issuers; (3) demand acceptances, and other debt instruments. Data are derived from the Federal deposits at all commercial banks other than those due to depository institutions, Reserve Board's flow of funds accounts. Data on debt of domestic nonfinancial the U.S. government, and foreign banks and official institutions, less cash items in sectors are monthly averages, derived by averaging adjacent month-end levels. the process of collection and Federal Reserve float; and (4) other checkable Growth rates for debt reflect adjustments for discontinuities over time in the levels deposits (OCD), consisting of negotiable order of withdrawal (NOW) and auto- of debt presented in other tables. matic transfer service (ATS) accounts at depository institutions, credit union 5. Sum of overnight RPs and Eurodollars, money market fund balances share draft accounts, and demand deposits at thrift institutions. (general purpose and broker-dealer), MMDAs, and savings and small time M2: Ml plus overnight (and continuing contract) repurchase agreements deposits. (RPs) issued by all depository institutions and overnight Eurodollars issued to 6. Sum of large time deposits, term RPs, term Eurodollars of U.S. residents, U.S. residents by foreign branches of U.S. banks worldwide, money market and money market fund balances (institution-only), less a consolidation adjustdeposit accounts (MMDAs), savings and small-denomination time deposits ment that represents the estimated amount of overnight RPs and Eurodollars held (time deposits—including retail RPs—in amounts of less than $100,000), and by institution-only money market mutual funds. balances in both taxable and tax-exempt general purpose and broker-dealer 7. Small-denomination time deposits—including retail RPs—are those issued money market mutual funds. Excludes individual retirement accounts (IRA) in amounts of less than $100,000. All IRA and Keogh accounts at commercial and Keogh balances at depository institutions and money market funds. Also banks and thrifts are subtracted from small time deposits. excludes all balances held by U.S. commercial banks, money market funds 8. Large-denomination time deposits are those issued in amounts of $100,000 (general purpose and broker-dealer), foreign governments and commercial or more, excluding those booked at international banking facilities. banks, and the U.S. government. 9. Large-denomination time deposits at commercial banks less those held by M3: M2 plus large-denomination time deposits and term RP liabilities (in money market mutual funds, depository institutions, and foreign banks and amounts of $100,000 or more) issued by all depository institutions, term Eurodol- official institutions. lars held by U.S. residents at foreign branches of U.S. banks worldwide and at all Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Nonfinancial Statistics • April 1991 1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT Millions of dollars Monthly averages of daily figures Weekly averages of daily figures for week ending Factors 1990 1991 1990 1991 Nov. Dec. Jan. Dec. 19 Dec. 26 Jan. 2 Jan. 9 Jan. 16 Jan. 23 Jan. 30 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit 288,202 291,223 284,701 286,446 291,339 298,038 283,275 283,623 280,967 286,334 U.S. government securities1, 2 2 Bought outright-system account 238,788 239,499 234,665 239,302 238,901 235,686 235,246 235,214 232,843 234,862 3 Held under repurchase agreements ... 2,405 3,144 2,165 0 3,587 10,469 828 405 0 3,797 Federal agency obligations 4 Bought outright 6,343 6,342 6,342 6,342 6,342 6,342 6,342 6,342 6,342 6,342 5 Held under repurchase agreements ... 163 121 223 0 9 450 93 126 0 266 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions2 7 Adjustment credit 43 212 508 52 754 185 281 365 1,292 213 8 Seasonal credit 163 78 32 81 76 59 23 23 32 43 9 Extended credit 25 23 29 22 22 23 20 26 30 38 10 Float 482 1,727 1,077 606 1,267 4,529 1,020 1,600 891 768 11 Other Federal Reserve assets 39,791 40,077 39,661 40,041 40,381 40,296 39,423 39,522 39,539 40,006 12 Gold stock 11,060 11,058 11,058 11,058 11,058 11,058 11,058 11,058 11,058 11,058 13 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 14 Treasury currency outstanding 20,321 20,368 20,429 20,368 20,378 20,404 20,414 20,424 20,434 20,444 ABSORBING RESERVE FUNDS 15 Currency in circulation 278,216 283,000 284,549 282,470 284,928 286,874 286,252 284,584 283,705 283,126 16 Treasury cash holdings 552 552 572 553 553 556 567 567 576 578 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 5,543 5,809 8,701 5,406 6,810 7,987 6,906 5,320 5,494 14,064 18 Foreign 250 251 252 234 236 319 257 242 254 241 19 Service-related balances and adjustments 1,948 2,078 3,097 2,202 1,983 2,253 2,623 4,355 2,871 2,829 20 Other 240 226 188 246 201 234 161 196 173 217 21 Other Federal Reserve liabilities and capital 9,380 9,170 8,467 8,947 9,093 8,668 8,210 8,377 8,513 8,690 22 Reserve balances with Federal Reserve Banks3 33,472 31,582 20,379 27,833 28,990 32,628 19,790 21,483 20,893 18,111 End-of-month figures Wednesday figures 1990 1991 1990 1991 Nov. Dec. Jan. Dec. 19 Dec. 26 Jan. 2 Jan. 9 Jan. 16 Jan. 23 Jan. 30 SUPPLYING RESERVE FUNDS 23 Reserve Bank credit 291,580 301,882 299,857 288,414 294,198 284,391 279,133 285,489 291,434 285,659 U.S. government securities'• 2 24 Bought outright-system account 242,633 235,090 234,306 240,854 237,937 238,053 231,779 235,871 238,717 234,234 25 Held under repurchase agreements ... 2,352 17,013 14,888 0 3,632 0 0 0 0 2,359 Federal agency obligations 26 Bought outright 6,342 6,342 6,342 6,342 6,342 6,342 6,342 6,342 6,342 6,342 27 Held under repurchase agreements ... 270 1,341 2,186 0 10 0 0 0 0 866 28 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions2 29 Adjustment credit 97 112 89 39 4,880 489 597 50 5,071 51 30 Seasonal credit 7 55 39 79 74 38 21 34 40 41 31 Extended credit 26 23 52 20 25 24 22 28 32 44 32 Float 486 2,222 531 1,071 694 496 1,047 3,719 1,536 1,685 33 Other Federal Reserve assets 39,367 39,685 41,425 40,008 40,605 38,949 39,327 39,446 39,696 40,038 34 Gold stock 11,059 11,058 11,058 11,058 11,058 11,058 11,058 11,059 11,059 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 20,348 20,388 20,454 20,368 20,378 20,404 20,414 20,424 20,434 20,444 ABSORBING RESERVE FUNDS 37 Currency in circulation 279,507 286,949 283,004 283,471 286,167 287,385 285,533 284,091 283,890 282,780 38 Treasury cash holdings 552 561 590 554 553 566 569 576 576 590 Deposits, other than reserve balances, with Federal Reserve Banks 39 Treasury 5,495 8,960 27,810 6,656 11,375 10,495 5,577 5,099 11,079 16,884 40 Foreign 264 369 271 246 180 203 197 213 188 225 41 Service-related balances and adjustments 1,935 2,253 2,766 2,202 1,983 2,253 2,623 4,355 2,871 2,829 42 Other 213 242 183 324 240 184 150 195 161 197 43 Other Federal Reserve liabilities and capital 9,515 8,147 9,820 8,610 8,826 7,987 8,186 8,190 8,429 8,506 44 Reserve balances with Federal Reserve Banks3 35,525 35,866 16,944 27,796 26,330 16,799 17,790 24,273 25,752 15,169 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 1991 Dec. Dec. Dec/ July Aug. Sept. Oct. Nov. Dec.' Jan. 1 Reserve balances with Reserve Banks 37,837 35,436 30,237 32,946 32,448 33,303 32,127 33,382 30,237 22,031 2 Total vault cash3 28,204 29,822' 31,777 30,459' 30,842' 30,625' 31,515 31,086' 31,777 33,219 3 Applied vault cash4 25,909 27,374 28,884 27,996 28,280 28,149 28,925 28,663 28,884 28,970 4 Surplus vault cash5 2,295 2,448' 2,893 2,462' 2,562' 2,476' 2,590 2,423' 2,893 4,249 5 Total reserves6 63,746 62,810 59,120 60,943 60,728 61,452 61,052 62,045 59,120 51,001 6 Required reserves 62,699 61,888 57,456 60,081 59,860 60,544 60,206 61,099 57,456 48,825 7 Excess reserve balances at Reserve Banks7 1,047 922 1,665 862 868 909 847 947 1,665 2,176 8 Total borrowings at Reserve Banks 1,716 265 326 757 927 624 410 230 326 534 9 Seasonal borrowings at Reserve Banks 130 84 76 389 430 418 335 162 76 33 10 Extended credit at Reserve Banks8 1,244 20 23 280 127 6 18 24 23 27 Biweekly averages of daily figures for weeks ending 1990 1991 Oct. 3 Oct. 17 Oct. 31 Nov. 14 Nov. 28 Dec. 12 Dec. 26 Jan. 9' Jan. 23 Feb. 6 11 Reserve balances with Reserve Banks 32,389 32,833 31,365 33,821 32,848 34,046 28,413 26,198 21,193 18,810 12 Total vault cash3 31,227' 31,674' 31,418' 30,656' 31,631' 30,293 32,69c 32,783 32,049 35,758 13 Applied vault cash 28,565 29,171 28,756 28,293 29,125 28,027 29,621 28,876 28,222 30,387 14 Surplus vault cash 2,662' 2,503' 2,662' 2,363' 2,506' 2,266 3,069' 3,908 3,828 5,371 15 Total reserves6 60,954 62,004 60,121 62,114 61,972 62,073 58,034 55,074 49,415 49,197 16 Required reserves 59,832 61,021 59,471 61,132 61,006 61,513 56,113 51,481 48,478 46,446 17 Excess reserve balances at Reserve Banks7 1,122 984 650 982 966 561 1,922 3,592 937 2,751 18 Total borrowings at Reserve Banks 516 401 397 282 193 130 504 295 884 191 19 Seasonal borrowings at Reserve Banks 424 345 307 195 140 87 79 41 28 35 20 Extended credit at Reserve Banks8 9 13 26 25 25 25 22 22 28 30 1. These data also appear in the Board's H.3 (502) release. For address, see in- satisfy current reserve requirements. side front cover. 5. Total vault cash (line 2) less applied vault cash (line 3). 2. Excludes required clearing balances and adjustments to compensate for float 6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash and includes other off-balance sheet "as-of" adjustments. (line 3). 3. Total "lagged" vault cash held by those depository institutions currently 7. Total reserves (line 5) less required reserves (line 6). subject to reserve requirements. Dates refer to the maintenance periods in which 8. Extended credit consists of borrowing at the discount window under the the vault cash can be used to satisfy reserve requirements. Under contempora- terms and conditions established for the extended credit program to help neous reserve requirements, maintenance periods end 30 days after the lagged depository institutions deal with sustained liquidity pressures. Because there is computation periods in which the balances are held. not the same need to repay such borrowing promptly as there is with traditional 4. All vault cash held during the lagged computation period by "bound" short-term adjustment credit, the money market impact of extended credit is institutions (i.e., those whose required reserves exceed their vault cash) plus the similar to that of nonborrowed reserves. amount of vault cash applied during the maintenance period by "nonbound" 9. Data are prorated monthly averages of biweekly averages. institutions (i.e., those whose vault cash exceeds their required reserves) to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 DomesticN onfinancial Statistics • April 1991 1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Banks1 Averages of daily figures, in millions of dollars 1990, week ending Monday2 MMaattuurriittyy aanndd ssoouurrccee Oct. 8 Oct. 15 Oct. 22 Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov. 26 Dec. 3 Federal funds purchased, repurchase agreements, and other selected borrowing in immediately available funds From commercial banks in the United States 1 For one day or under continuing contract 91,217 86,843 78,536 75,748 82,906 83,216 87,080 82,126 83,431 2 For all other maturities 15,376 17,561 18,933 20,036 19,286 19,113 19,428 21,122 1199,,775555 From other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies 3 For one day or under continuing contract 36,441 37,361 34,698 34,674 38,560 36,566 37,728 34,159 36,220 4 For all other maturities 19,050 19,576 19,784 20,107 20,656 21,600 21,121 23,295 20,933 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 19,495 18,854 16,492 16,691 15,620 15,314 13,700 11,585 12,015 6 For all other maturities 20,207 21,599 22,747 23,144 22,952 23,366 21,972 21,976 21,258 All other customers 7 For one day or under continuing contract 31,139 32,559 31,762 30,612 30,586 29,738 31,667 27,725 30,998 8 For all other maturities 12,308 12,002 12,526 13,302 13,818 13,370 13,665 17,193 13,248 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 50,017 47,434 45,415 47,006 49,786 45,086 50,258 46,826 47,141 10 To all other specified customers3 15,420 15,690 16,937 16,645 16,663 15,976 17,843 16,466 17,078 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 hi 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels AAddjjuussttmmeenntt ccrreeddiitt Extended credit2 aanndd FFFeeedddeeerrraaalll RRReeessseeerrrvvveee SSeeaassoonnaall ccrreeddiitt11 First 30 days of borrowing After 30 days of borrowing3 BBBaaannnkkk On EfiFective Previous On Effective Previous On Effective Previous 2/28/91 date rate 2/28/91 date rate 2/28/91 date rate Effective date Boston 2/1/91 6Vi 6 2/1/91 6V1 6.85 2/21/91 7.30 2/7/91 New York 2/1/91 2/1/91 2/21/91 2/7/91 Philadelphia 2/1/91 2/1/91 2/21/91 2/7/91 Cleveland 2/1/91 2/1/91 2/21/91 2/7/91 Richmond 2/1/91 2/1/91 2/21/91 2/7/91 Atlanta 2/4/91 2/4/91 2/21/91 2/7/91 Chicago 2/1/91 2/1/91 2/21/91 2/7/91 St. Louis 2/4/91 2/4/91 2/21/91 2/7/91 Minneapolis 2/1/91 2/1/91 2/21/91 2/7/91 Kansas City 2/1/91 2/1/91 2/21/91 2/7/91 D Sa a n ll a F s r ancisco ... 6 2 2 / / 1 1 / / 9 9 1 1 6V1 6 2 2 / / 1 1 / / 9 9 1 1 6 Vl 6.85 2 2 / / 2 2 1 1 / / 9 9 1 1 7.30 2 2/ / 7 7 / / 9 9 1 1 Range of rates for adjustment credit in recent years4 Range (or F.R. Range (or F.R. Range (or F.R. EfiFective date A le l v l e F l) . — R. B o an f k Effective 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. I 1 n 9 7 e 8 ff — ec J t a D n. e c. 9 3 1, 1977 6-6 6 W 6 6 Vl 1981-——MMaayy 8 5 13 1 - 4 1 4 1 1 4 4 11998855——MMaayy 2 2 0 4 7IWV-8i I I V V l l May 2 1 0 1 6V 6 V 5- i 7 m 1 Nov. 6 ? 13 1 - 3 1 4 1 1 3 3 1986—Mar. 7 1-1 Vi 7 12 7 1 Dec. 4 12 12 10 7 7 J A u u ly g . 2 1 3 1 0 7- 7 7 7 3 H V /4 4 7 I I 3 V V /4 * a 1982---JJuullyy 7 ?3 0 11 i ^ m -1 2 1 1 1\ V V i i A J A A u uu p ly gg r. .. 2 2 1 1 1 1 5 6 1 W / 6 5 - - 7 6 6 6 5 V V 5 l Sept. 22 8 8 Aug. 7 11-11V5 11 22 5 Vi 5 Vl Oct. 2 1 0 6 8m 8 W 8 m V i 1 3 6 \m11 1 1 1 0 Vi 11998877——SSeepptt.. 4 SVi-6 6 Nov. 1 SVi-9Vl 9 Vi 71 10-10W 10 11 6 6 1979— O A S Ju e c u l p t y g . t . . 2 2 2 1 1 1 8 0 0 3 9 7 1 1 1 0 0 l 9 - 1 o ^ 1 1 1 - V w - 0 0 1 1 1 l W 2 1 9 1 1 1 1 1 1 0 2 V 0 0 1 1 V V i i i D N O e o c c t v . . . 7 7 3 1 1 1 1 1 6 ? 0 5 7 3 ? 4 , . 9 9 8 m ^ m 9 - V 1 9 - 9 - V1 0 V 9 l 0 - 2 2 9 9 9 8 9 9 m 9 1 V0 V V i i l 1 11 1 99 9 9 88 9 8 88 0 9 —— — — AA D Fe uu e b c gg . . .. 2 1 2 1 9 7 9 4 1 6 b m 6- V 6 7 V V l- 1 i 1 1 6 1 6 6 V V V l l i 10 12 12 1984-—Apr. 9 8'/>-9 9 1991—Feb. 1 6-6 Vl 6 1980— M Fe a b y . 2 1 1 9 9 5 1 1 2 2 1 - - 3 1 1 3 3 1 1 1 3 3 3 Nov. ? 7 n . i 6 . 81 8 / 9 5V -9i 9 m8 V i In effect Feb. 4 2 8, 1991 6 6 6 6 30 12 12 Dec. 74 8 8 June 13 11-12 11 16 11 11 July 28 10-11 10 29 10 10 Sept. 26 11 11 Nov. 17 12 12 Dec. 5 12-13 13 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 DomesticN onfinancial Statistics • April 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 iinntteerrvvaall Percent of deposits Effective date Net transaction accounts3' 4 33333 1111122222/////1111188888/////9999900000 1111122222 1111122222/////1111188888/////9999900000 00000 1111122222/////2222277777/////9999900000 00000 1111122222/////2222277777/////9999900000 1. 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 1989 July Aug. Sept. Oct. Nov. Dec. U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 8,223 14,284 24,739 1,732 287 4,264 631 933 6,658 2 Gross sales 587 12,818 7,291 0 0 68 0 0 0 3 4 R Ex ed ch em an p g t e io ns 24 2 1 , ,8 2 7 00 6 23 1 1 2 , , 2 7 1 3 1 0 23 4 1 , , 4 3 0 8 0 6 16,27 0 9 16,15 0 9 21,91 0 2 19,04 0 1 19,27 0 1 25,98 0 1 Others within 1 year 5 Gross purchases 2,176 327 475 50 0 0 0 0 325 6 Gross sales 0 0 0 0 0 0 0 0 0 7 Maturity shift 23,854 28,848 25,638 1,314 1,321 3,235 1,010 1,934 3,531 8 Exchange -24,588 -25,783 -27,424 0 -3,577 -4,550 0 0 -4,315 9 Redemptions 0 500 0 0 0 0 0 0 0 1 to 5 years 10 Gross purchases 5,485 1,436 200 0 0 0 0 0 0 11 Gross sales 800 490 0 0 0 0 0 0 0 12 Maturity shift -17,720 -25,534 -21,770 -1,314 -1,234 -2,188 -1,010 1,677 -3,258 13 Exchange 22,515 23,250 25,410 0 3,577 4,200 0 0 3,915 5 to 10 years 14 Gross purchases 1,579 287 0 0 0 0 0 0 0 15 Gross sales 175 29 0 0 0 0 0 0 0 16 Maturity shift -5,946 -2,231 -2,186 0 -87 -697 0 -256 127 17 Exchange 1,797 1,934 789 0 0 0 0 0 0 Over 10 years 18 Gross purchases 1,398 284 0 0 0 0 0 19 Gross sales 0 0 0 0 0 0 0 20 Maturity shift -188 ,086 -1,681 0 0 -350 -400 21 Exchange 275 600 1,226 0 0 350 400 All maturities 2 2 2 2 3 4 G G Re r ro o d s s e s s m s p p a u t l i r e o c s n h s a ses 1 2 8 1 , , ,5 8 2 6 6 00 2 3 1 1 1 3 6 3 , , , 3 6 2 3 1 3 7 7 0 2 7 5 4 , , , 4 5 4 9 1 0 1 4 0 1,78 0 0 2 28 0 0 7 4,26 6 4 0 8 63 0 0 1 93 0 0 3 6,98 0 0 3 Matched transactions 25 Gross sales 1,168,484 1,323,480 1,369,052 107,896 95,144 113,647 120,036 127,265 116,601 26 Gross purchases 1,168,142 1,326,542 1,363,434 110,042 95,787 110,635 120,280 129,722 114,488 Repurchase agreements2 27 Gross purchases 152,613 129,518 219,632 11,242 13,106 26,700 31,996 19,844 36,457 28 Gross sales 151,497 132,688 202,551 11,242 11,447 23,764 34,932 19,844 34,105 29 Net change in U.S. government securities 15,872 -10,055 25,086 3,928 2,590 -2,060 3,390 7,222 FEDERAL AGENCY OBLIGATIONS Outright transactions 0 0 30 Gross purchases 0 0 31 Gross sales 32 Redemptions 587 442 Repurchase agreements2 33 Gross purchases 57,259 38,835 41,836 3,221 4,697 7,130 7,394 5,913 2,774 34 Gross sales 56,471 40,411 40,461 3,221 4,137 5,944 8,580 5,913 2,504 35 Net change in federal agency obligations . 1,192 527 1,149 -1,186 -34 270 36 Total net change in System Open Market Account 16,070 -12,073 26,278 3,928 3,117 5,270 -3,247 3,356 7,492 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 • April 1991 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month Account 1991 1990 1991 Jan. 2 Jan. 9 Jan. 16 Jan. 23 Jan. 30 Nov. 30 Dec. 31 Jan. 31 Consolidated condition statement ASSETS 1 Gold certificate account 11,058 11,058 11,059 11,059 11,058 11,059 11,058 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 Coin 529 529 553 584 611 532 535 611 Loans 4 To depository institutions 551 639 112 5,143 136 131 190 180 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 0 0 0 0 866 270 1,341 2,186 U.S. Treasury securities Bought outright 9 Bills 115,484 109,209 113,301 116,148 111,664 119,763 112,520 111,736 10 Notes 91,407 91,407 91,407 91,407 91,407 91,707 91,407 91,407 11 Bonds 31,163 31,163 31,163 31,163 31,163 31,163 31,163 31,163 12 Total bought outright 238,053 231,779 235,871 238,717 234,234 242,633 235,090 234,306 13 Held under repurchase agreements 0 0 0 0 2,359 2,352 17,013 14,888 14 Total U.S. Treasury securities 238,053 231,779 235,871 238,717 236,592 244,985 252,103 249,194 15 Total loans and securities 244,946 238,760 242,324 250,202 243,936 251,728 259,975 257,901 16 Items in process of collection 4,470 7,090 9,231 9,358 6,650 6,235 6,106 5,160 17 Bank premises 872 875 876 876 875 862 872 875 Other assets 18 Denominated in foreign currencies2 32,634 32,668 32,700 32,810 32,838 33,579 32,633 33,879 19 All other3 5,776 5,821 5,753 6,002 6,308 4,859 6,376 6,704 20 Total assets 310,303 306,819 312,514 320,908 312,294 318,871 327,573 326,206 LIABILITIES 21 Federal Reserve notes 268,076 266,217 264,796 226644,,661166 226633,,553377 260,243 226677,,665577 226633,,775511 Deposits 22 To depository institutions 19,641 21,114 28,170 28,485 17,926 37,359 38,658 19,902 23 U.S. Treasury—General account 10,495 5,577 5,099 11,079 16,884 5,495 8,960 27,810 24 Foreign—Official accounts 203 197 213 188 225 264 369 271 25 Other 184 150 195 161 197 213 242 183 26 Total deposits 30,523 27,038 33,676 39,913 35,232 43,331 48,228 48,165 27 Deferred credit items 3,716 5,380 5,851 7,951 5,019 5,783 3,540 4,470 28 Other liabilities and accrued dividends4 3,035 2,977 2,945 3,131 3,195 3,807 3,301 3,588 29 Total liabilities 305,350 301,610 307,269 315,611 306,982 313,163 322,727 319,974 CAPITAL ACCOUNTS 30 Capital paid in 2,423 2,427 2,438 2,438 2,450 2,404 2,423 2,450 31 Surplus 2,423 2,423 2,423 2,423 2,423 2,243 2,423 2,423 32 Other capital accounts 106 359 384 436 438 1,062 0 1,359 33 Total liabilities and capital accounts 310,303 306,819 312,514 320,908 312,294 318,871 327,573 326,206 34 MEMO: Marketable U.S. Treasury securities held in custody for foreign and international accounts 244,852 246,027 246,148 247,463 252,496 246,728 247,521 255,092 Federal Reserve note statement 35 Federal Reserve notes outstanding issued to bank 304,645 304,081 305,196 306,121 306,722 304,591 304,829 306,681 36 LESS: Held by bank 36,569 37,864 40,399 41,505 43,185 44,349 37,172 42,930 37 Federal Reserve notes, net 268,076 266,217 264,796 264,616 263,537 260,243 267,657 263,751 Collateral held against notes net: 38 Gold certificate account 11,058 11,058 11,059 11,059 11,058 11,059 11,058 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 2,604 7,021 1,507 0 0 0 0 0 41 U.S. Treasury and agency securities 244,395 238,120 242,212 243,539 242,460 239,166 246,581 242,675 42 Total collateral 268,076 266,217 264,796 264,616 263,537 260,243 267,657 263,751 1. Some of these data also appear in the Board's H.4.1 (503) release. For 3. Valued monthly at market exchange rates. address, see inside front cover. Components may not add to totals because of 4. Includes special investment account at the Federal Reserve Bank of Chicago rounding. in Treasury bills maturing within 90 days. 2. Includes securities loaned—fully guaranteed by U.S. Treasury securities 5. Includes exchange-translation account reflecting the monthly revaluation at pledged with Federal Reserve Banks—and excludes securities sold and scheduled market exchange rates of foreign-exchange commitments. to be bought back under matched sale-purchase transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Banks All 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holding Millions of dollars Wednesday End of month TTTyyypppeee aaannnddd mmmaaatttuuurrriiitttyyy gggrrrooouuupppiiinnngggsss 1990 1991 1990 1991 Dec. 26 Jan. 2 Jan. 9 Jan. 16 Jan. 23 Nov. 30 Dec. 31 Jan. 30 4,979 551 639 112 5,143 131 190 136 4 2 3 9 W 1 1 6 i t d d h a a i y n y s s 1 t t 5 o o d 9 1 a 0 y y d s e a a y r s 4,97 0 9 1 54 7 0 5 63 6 0 3 10 4 0 8 5,14 0 1 2 8 5 0 0 0 18 0 4 6 13 0 0 6 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 7 16 days to 90 days 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 9 1 0 U. W S 16 . i T t d h a r i e n y a s s 1 u t 5 o r y d 9 a 0 s y e d s c 1 a u y ri s t ies—Total 2 5 7 4 1 6 5 1 1 , , , , 8 9 5 4 8 6 6 8 2 9 8 9 23 5 7 1 8 5 3 2 , , , , 0 4 9 0 5 0 4 9 4 8 5 4 2 4 3 7 1 6 1 4 4 , , , , 7 5 5 0 7 3 8 5 9 0 3 9 2 5 7 3 1 2 5 5 1 , , , , 8 3 7 2 7 6 1 3 1 8 9 0 23 5 7 1 8 4 5 2 , , , , 7 5 5 0 1 4 4 7 7 1 9 4 2 7 4 6 7 2 3 3 , , , , 2 6 9 8 8 3 7 4 8 3 4 1 2 5 7 3 7 5 5 5 , , , , 0 5 4 5 9 3 2 1 0 8 8 6 2 7 3 5 1 3 7 4 2 , , , , 1 0 3 5 6 0 6 0 9 0 7 2 1 1 3 4 O O v v e e r r 5 1 y y e e a a r r s t o to 5 1 y 0 e a y r e s a rs 2 5 1 4 9 3 , , , 7 3 1 3 7 2 6 2 1 5 2 1 4 8 3 , , , 7 7 1 3 4 2 6 9 1 2 5 1 4 8 3 , , , 7 7 1 7 4 2 9 9 1 2 5 1 4 8 3 , , , 7 5 3 3 1 0 6 0 6 2 5 1 4 8 3 , , , 7 5 3 3 1 0 6 0 6 2 5 1 4 9 3 , , , 7 5 2 7 3 2 2 6 1 2 5 1 4 8 3 , , , 7 7 1 3 4 2 6 9 1 2 5 1 4 8 3 , , , 7 5 3 3 1 0 6 0 6 1 1 1 7 8 6 Fe W 1 d 6 e i r t d a h a l i n y a s g 1 e t 5 o n c d 9 y a 0 y o d s b ' a l y ig s a tions—Total 6 1 , , 3 7 2 6 5 3 1 3 2 7 0 9 6 1 , , 3 9 6 4 3 4 0 2 2 4 6 1 , , 3 9 6 4 3 4 0 2 2 4 6 1 , , 3 9 5 1 4 0 8 0 2 7 9 5 6 1 , , 3 8 5 2 4 8 3 1 2 4 3 9 6 1 , , 3 6 6 2 4 0 6 6 2 4 1 8 6 1 , , 3 7 6 2 4 3 3 0 2 7 9 0 7 1 1 , , , 2 8 0 5 0 6 3 4 8 4 5 8 2,555 2,555 2,555 2,589 2,495 2,595 2,555 2,550 2 2 1 2 O O v v e e r r 5 1 0 y e y a e r a s r s t o 10 years 1,0 1 2 8 2 8 1,0 1 2 8 2 8 1,0 1 2 8 2 7 1,0 1 2 8 2 7 1,0 1 2 8 2 8 1,0 1 2 8 5 8 1,0 1 2 8 2 8 1,0 1 2 8 2 8 1. Holdings under repurchase agreements are classified as maturing within 15 NOTE: Components may not add to totals because of rounding, days in accordance with maximum maturity of the agreements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Nonfinancial Statistics • April 1991 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1990 1991 1987 1988 1989 1990 Dec. Dec. Dec. Dec/ June July Aug. Sept. Oct. Nov. Dec.' Jan. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves3 58.59 60.59 60.03 60.53 59.73 59.32 59.75 60.08 59.61 59.76 60.53 60.63 2 Nonborrowed reserves4 57.82 58.88 59.77 60.20 58.85 58.56 58.82 59.46 59.20 59.53 60.20 60.10 3 Nonborrowed reserves plus extended credit5 58.30 60.12 59.79 60.22 59.20 58.84 58.95 59.46 59.22 59.56 60.22 60.12 4 Required reserves 57.55 59.55 59.11 58.86 58.96 58.46 58.88 59.17 58.76 58.82 58.86 58.45 5 Monetary base6 258.18' 275.40' 285.28'" 309.73 296.47' 298.01' 301.08' 304.47r 306.38' 307.76' 309.73 314.27 ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 Not seasonally adjusted 6 Total reserves7 60.07 62.22 61.67 62.18 59.61 59.47 59.21 59.81 59.24 60.02 62.18 62.29 7 Nonborrowed reserves 59.30 60.50 61.40 61.86 58.73 58.71 58.29 59.19 58.83 59.79 61.86 61.76 8 Nonborrowed reserves plus extended credit5 59.78 61.75 61.42 61.88 59.07 58.99 58.41 59.20 58.85 59.82 61.88 61.78 9 Required reserves8 59.03 61.17 60.75 60.52 58.84 58.61 58.34 58.90 58.40 59.08 60.52 60.11 10 Monetary base9 262.00 279.54 289.45 314.03 297.37 299.90 301.46 303.56 305.00 308.71 314.03 315.36 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS10 11 Total reserves11 62.14 63.75 62.81 59.12 61.20 60.94 60.73 61.45 61.05 62.05 59.12 51.00 12 Nonborrowed reserves 61.36 62.03 62.54 58.79 60.32 60.19 59.80 60.83 60.64 61.82 58.79 50.47 13 Nonborrowed reserves plus extended credit5 61.85 63.27 62.56 58.82 60.66 60.47 59.93 60.83 60.66 61.84 58.82 50.49 14 Required reserves 61.09 62.70 61.89 57.46 60.42 60.08 59.86 60.54 60.21 61.10 57.46 48.83 15 Monetary base12 266.06 283.00 292.55 313.70 300.99 303.39 304.99 307.21 308.85 312.69 313.70 309.31 16 Excess reserves13 1.05 1.05 .92 1.66 .77 .86 .87 .91 .85 .95 1.66 2.18 17 Borrowings from the Federal Reserve .78 1.72 .27 .33 .88 .76 .93 .62 .41 .23 .33 .53 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 ana estimates of the impact on required reserves in reserve requirements, a multiplicative procedure is used to estimate what of changes in reserve requirements are available from the Monetary and Reserves required reserves would have been in past periods had current reserve require- Projections Section. Division of Monetary Affairs. Board of Governors of the ments been in effect. Break-adjusted required reserves includes required reserves Federal Reserve System, Washington, D.C. 20551. against transactions deposits and nonpersonal time and savings deposits (but not 2. Figures reflect adjustments for discontinuities or "breaks" associated with reservable nondeposit liabilities). regulatory changes in reserve requirements. 9. The break-adjusted monetary base equals (1) break-adjusted total reserves 3. Seasonally adjusted, break adjusted total reserves equal seasonally adjusted, (line 6), plus (2) the (unadjusted) currency component of the money stock, plus (3) break-adjusted required reserves (line 4) plus excess reserves (line 16). (for all quarterly reporters on the "Report of Transaction Accounts, Other 4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally Deposits and Vault Cash" and for all those weekly reporters whose vault cash adjusted, break-adjusted total reserves (line 1) less total borrowings of depository exceeds their required reserves) the break-adjusted difference between current institutions from the Federal Reserve (line 17). vault cash and the amount applied to satisfy current reserve requirements. 5. Extended credit consists of borrowing at the discount window under 10. Reflects actual reserve requirements, including those on nondeposit liabilthe terms and conditions established for the extended credit program to help ities, with no adjustments to eliminate the effects of discontinuities associated depository institutions deal with sustained liquidity pressures. Because there is with changes in reserve requirements. not the same need to repay such borrowing promptly as there is with traditional 11. Reserve balances with Federal Reserve Banks plus vault cash used to short-term adjustment credit, the money market impact of extended credit is satisfy reserve requirements. similar to that of nonborrowed reserves. 12. The monetary base, not break-adjusted and not seasonally adjusted, 6. The seasonally adjusted, break-adjusted monetary base consists of (1) consists of (1) total reserves (line 11), plus (2) required clearing balances and seasonally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjustments to compensate for float at Federal Reserve Banks, plus (3) the adjusted currency component of the money stock, plus (3) (for all quarterly currency component of the money stock, plus (4) (for all quarterly reporters on reporters on the "Report of Transaction Accounts, Other Deposits and Vault the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all Cash" and for all those weekly reporters whose vault cash exceeds their required those weekly reporters whose vault cash exceeds their required reserves) the reserves, the seasonally adjusted, break-adjusted difference between current vault difference between current vault cash and the amount applied to satisfy current cash and the amount applied to satisfy current reserve requirements. reserve requirements. After the introduction of CRR, currency and vault cash 7. Break-adjusted total reserves equal break-adjusted required reserves (line 9) figures are measured over the computation periods ending on Mondays. plus excess reserves (line 16). 13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary and Credit Aggregates A13 1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1 Billions of dollars, averages of daily figures 199C 1991 Itenr D 19 e 8 c 7 / D 19 e 8 c 8 / D 19 e 8 c 9 / D 19 e 9 c 0 / Oct. Nov. Dec. Jan. Seasonally adjusted 1 Ml 749.7 786.4 793.6 825.4 821.2 823.3 825.4 827.0 ? M2 2,910.1 3,069.9 3,223.1 3,330.5 3,325.2 3,325.8 3,330.5 3,333.1 M3 3,677.4 3,919.1 4,055.2 4,115.9 4,111.3 4,113.7 4,115.9 4,129.5 4 4,337.0 4,676.0 4,889.9 4,988.2 4,966.9 4,978.1 4,988.2 n.a. 5 8,345.1 9,107.6 9,790.4 10,472.1 10,356.2 10,416.1 10,472.1 n.a. Ml components 6 Currency , 196.8 212.0 222.2 246.4 243.9 245.0 246.4 251.6 7 Travelers checks 7.0 7.5 7.4 8.4 8.3 8.4 8.4 8.4 8 Demand deposits5 286.5 286.3 278.7 276.9 277.1 277.2 276.9 272.8 9 Other checkable deposits6 259.3 280.7 285.2 293.7 291.8 292.8 293.7 294.1 Nontransactions components 10 In M2 ... .„ 2,160.4 2,283.5 2,429.5 2,505.1 2,504.0 2,502.5 2,505.1 2,506.1 11 In M3 only8 767.3 849.3 832.1 785.4 786.1 787.9 785.4 796.4 Time and Savings accounts Commercial banks 12 Savings deposits 178.3 192.1 187.7 199.4 197.6 198.2 199.4 220011..55 n Money market deposit accounts 356.4 350.2 353.0 378.4 376.7 377.4 378.4 377.8 14 Small time deposits9.. 388.0 447.5 531.4 598.0 588.1 589.5 598.0 601.4 15 Large time deposits10, 11 326.6 368.0 401.9 386.0 386.8 387.4 386.0 394.4 Thrift institutions 16 Savings deposits 233.7 232.3 216.4 211.4 213.9 212.9 211.4 221100..77 17 Money market deposit accounts 168.5 151.2 133.1 127.6 130.0 129.4 127.6 127.5 18 Small time deposits9 529.7 584.3 614.5 566.9 574.1 573.4 566.9 562.0 19 Large time deposits10 162.6 174.3 161.6 121.0 128.3 125.1 121.0 117.9 Money market mutual funds 70 General purpose and broker-dealer 221.7 241.1 313.6 347.7 341.7 334433..00 334477..77 335566..33 21 Institution-only 88.9 86.9 101.9 125.7 119.6 120.5 125.7 130.1 Debt components V Federal debt 1,957.9 2,114.2 2,268.1 2,534.7 22,,447744..33 22,,550077..77 22,,553344..77 n.a. 23 Nonfederal debt 6,387.2 6,993.4 7,522.3 7,937.3 7,881.9 7,908.4 7,937.3 n.a. Not seasonally adjusted Ml 766.2 804.2 811.9 844.3 817.6 826.1 844.3 833.5 75 2,923.0 3,083.3 3,236.6 3,344.5 3,322.5 3,329.5 3,344.5 3,343.4 76 3,690.3 3,931.5 4,067.0 4,127.9 4,108.4 4,120.8 4,127.9 4,135.6 77 4,352.8 4,691.8 4,907.4 5,007.4 4,962.9 4,983.2 5,007.4 n.a. 28 8,329.1 9,093.2 9,775.9 10,459.2 10,317.4 10,386.6 10,459.2 n.a. Ml components 29 Currency3 199.3 214.8 225.3 249.6 242.8 245.7 249.6 249.8 30 Travelers checks4 6.5 6.9 6.9 7.8 8.4 8.0 7.8 7.8 31 Demand deposits5 298.6 298.9 291.5 289.9 278.0 280.5 289.9 277.7 32 Other checkable deposits6 261.8 283.5 288.2 296.9 288.4 291.9 296.9 298.1 Nontransactions components 33 2,156.8 2,279.1 2,424.7 2,500.2 2,505.0 22,,550033..33 22,,550000..22 22,,550099..99 34 In M3 only8 767.3 848.2 830.4 783.5 785.9 791.3 783.5 792.3 Time and Savings accounts Commercial banks 35 Savings deposits 176.8 190.6 186.4 197.7 198.2 197.9 197.7 200.0 36 Money market deposit accounts 359.0 353.2 356.5 381.6 375.8 379.7 381.6 380.7 37 Small time deposits9. 387.2 446.0 529.2 596.0 588.0 588.4 596.0 601.9 38 Large time deposits10' 11 325.8 366.8 400.4 386.0 389.2 389.9 386.0 392.8 Thrift institutions 39 Savings deposits 231.4 229.9 214.2 209.6 214.4 212.6 209.6 209.1 40 Money market deposit accounts 168.6 151.6 133.7 128.7 129.7 130.1 128.7 128.4 41 Small time deposits9. 529.5 583.8 613.8 565.0 574.0 572.5 565.0 562.5 42 Large time deposits10 163.3 175.2 162.6 121.0 129.1 125.9 121.0 117.4 Money market mutual funds 43 General purpose and broker-dealer 221.1 240.7 313.5 347.8 341.3 344.5 347.8 356.6 44 Institution-only 89.6 87.6 102.8 127.0 117.1 121.2 127.0 134.8 Repurchase agreements and Eurodollars 45 Overnight 83.2 83.4 77.3 73.9 83.6 77.7 73.9 70.8 46 197.1 227.7 179.8 162.9 166.9 168.3 162.9 161.7 Debt components 47 Federal debt 1,955.6 2,111.8 2,265.9 2,532.1 2,459.3 2,498.8 2,532.1 n.a. 48 Nonfederal debt 6,373.5 6,981.4 7,509.9 7,927.1 7,858.1 7,887.8 7,927.1 n.a. For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Nonfinancial Statistics • April 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 all commercial banks other than those due to depository institutions, 3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of the U.S. government, and foreign banks and official institutions less cash items in depository institutions. the process of collection and Federal Reserve float; and (4), other checkable 4. Outstanding amount of U.S. dollar-denominated travelers checks of nondeposits (OCD) consisting of negotiable order of withdrawal (NOW) and auto- bank issuers. Travelers checks issued by depository institutions are included in matic transfer service (ATS) accounts at depository institutions, credit union demand deposits. share draft accounts, and demand deposits at thrift institutions. 5. Demand deposits at commercial banks and foreign-related institutions other M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs) than those due to depository institutions, the U.S. government, and foreign banks issued by all depository institutions and overnight Eurodollars issued to U.S. and official institutions, less cash items in the process of collection and Federal residents by foreign branches of U.S. banks worldwide, money market deposit Reserve float. accounts (MMDAs), savings and small-denomination time deposits (time depos- 6. Consists of NOW and ATS balances at all depository institutions, credit its—including retail RPs—in amounts of less than $100,000), and balances in both union share draft balances, and demand deposits at thrift institutions. taxable and tax-exempt general purpose and broker-dealer money market mutual 7. Sum of overnight RPs and overnight Eurodollars, money market fund funds. Excludes individual retirement accounts (IRA) and Keogh balances at balances (general purpose and broker-dealer), MMDAs, and savings and small depository institutions and money market funds. Also excludes all balances held time deposits. by U.S. commercial banks, money market funds (general purpose and broker- 8. Sum of large time deposits, term RPs, term Eurodollars of U.S. residents, dealer), foreign governments and commercial banks, and the U.S. government. and money market fund balances (institution-only), less a consolidation adjust- M3: M2 plus large-denomination time deposits and term RP liabilities (in ment that represents the estimated amount of overnight RPs and Eurodollars held amounts of $100,000 or more) issued by all depository institutions, term Eurodol- by institution-only money market funds. lars held by U.S. residents at foreign branches of U.S. banks worldwide and at all 9. Small-denomination time deposits—including retail RPs—are those issued banking offices in the United Kingdom and Canada, and balances in both taxable in amounts of less than $100,000. All individual retirement accounts (IRA) and and tax-exempt, institution-only money market mutual funds. Excludes amounts Keogh accounts at commercial banks and thrifts are subtracted from small time held by depository institutions, the U.S. government, money market funds, and deposits. foreign banks and official institutions. Also subtracted is the estimated amount of 10. Large-denomination time deposits are those issued in amounts of $100,000 overnight RPs and Eurodollars held by institution-only money market mutual or more, excluding those booked at international banking facilities. funds. 11. Large-denomination time deposits at commercial banks less those held by L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term money market mutual funds, depository institutions, and foreign banks and Treasury securities, commercial paper and bankers acceptances, net of money official institutions. market mutual fund holdings of these assets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary and Credit Aggregates A15 1.22 BANK DEBITS AND DEPOSIT TURNOVER1 Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates. 1990 BBaannkk ggrroouupp,, oorr ttyyppee ooff ccuussttoommeerr 11998877 11998888 11998899 June July Aug. Sept. Oct. Nov. DEBITS TO Seasonally adjusted 1 All insured banks 217,116.2 226,888.4 272,793.1 301,578.2 301,589.9 309,441.0 287,546.5 229944,,443311..11 229966,,994422..44 ? Major New York City banks 104,496.3 107,547.3 121,894.2 131,042.7 130,590.7 133,491.9 131,920.3 137,315.9 138,232.9 3 Other banks 112,619.8 119,341.2 150,898.9 170,535.5 170,999.2 175,949.1 155,626.2 157,115.2 158,709.6 4 ATS-NOW accounts4 2,402.7 2,757.7 3,501.8 4,004.2 4,163.7 4,478.9 3,763.3 4,229.5 4,193.5 5 Savings deposits 526.5 579.2 636.6 566.6 608.8 592.0 543.7 638.6 560.0 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 612.1 641.2 781.0 866.2 886655..55 888.6 882266..22 885522..00 886611..77 7 Major New York City banks 2,670.6 2,903.5 3,401.6 3,742.8 3,838.3 3,777.5 3,827.6 4,100.4 4,132.0 8 Other banks 357.0 376.8 481.5 544.6 543.8 562.3 496.3 503.4 510.1 9 ATS-NOW accounts4 13.8 14.7 18.3 19.5 20.5 21.9 18.3 20.6 20.2 10 Savings deposits5 3.1 3.1 3.5 2.9 3.1 3.1 2.8 3.3 2.9 DEBITS TO Not seasonally adjusted Demand deposits3 11 All insured banks 217,125.1 227,010.7 271,957.3 302,181.4 302,826.4 321,168.8 263,881.4 304,854.0 283,550.3 1 1? 3 O M t a h j e o r r b N a e n w ks York City banks 1 1 1 0 2 4 , , 6 5 0 1 6 8 . . 2 8 1 10 1 7 9 , , 5 4 6 4 5 5 . . 0 7 1 1 4 2 9 2 , , 7 2 1 4 5 1 . . 5 8 1 13 7 0 1 , , 3 8 3 4 2 8 . . 7 6 1 1 3 7 0 2 , , 1 7 0 2 0 6 . . 1 3 1 18 3 3 7 , , 7 4 0 6 8 0 . . 4 3 1 1 2 4 1 2 , , 3 5 4 3 3 8 . . 4 0 1 1 4 6 2 2 , , 6 1 6 9 4 0 . . 0 0 1 1 3 5 3 0 , , 2 3 2 2 0 9 . . 6 7 14 ATS-NOW accounts4 2,404.8 2,754.7 3,496.5 4,098.2 4,108.9 4,274.0 3,868.9 4,207.4 3,928.4 15 MMDA6 1,954.2 2,430.1 2,790.6 2,992.1 3,033.8 3,171.1 2,786.5 3,138.8 2,798.5 16 Savings deposits 526.8 578.0 635.8 567.8 640.3 598.1 538.5 662.6 510.1 DEPOSIT TURNOVER Demand deposits3 17 All insured banks 612.3 641.7 779.0 866.5 864.8 938.3 776600..66 888877..55 881155..77 18 Major New York City banks 2,674.9 2,901.4 3,415.4 3,797.6 3,777.5 4,109.2 3,607.3 4,376.5 4,067.4 19 Other banks 356.9 377.1 477.8 546.6 547.1 594.8 454.9 521.7 477.4 70 ATS-NOW accounts4 13.8 14.7 18.3 20.1 20.4 21.1 19.0 20.7 19.0 ?1 MMDA6 5.3 6.9 8.3 8.2 8.3 8.6 7.5 8.4 7.4 22 Savings deposits' 3.1 3.1 3.5 2.9 3.3 3.1 2.8 3.4 2.6 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 • April 1991 1.23 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars; averages of Wednesday figures 1990' 1991 CCaatteeggoorryy Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Seasonally adjusted 1 Total loans and securities2 2,615.1 2,633.2 2,648.1 2,655.4 2,670.1 2,683.0 2,704.9 2,708.0 2,713.6 2,716.6 2,723.6 2,721.1 2 U.S. government securities 413.8 420.3 426.4 430.3 438.4 442.8 445.7 450.1 453.1 454.0 454.2 454.0 3 Other securities 180.6 180.4 180.2 178.2 177.5 177.3 178.8 178.8 177.8 175.9 175.6 177.8 4 Total loans and leases2 2,020.7 2,032.5 2,041.5 2,046.9 2,054.2 2,062.9 2,080.4 2,079.0 2,082.7 2,086.7 2,093.8 2,089.3 5 Commercial and industrial 640.3 643.5 645.9 644.3 645.3 644.4 645.1 644.7 643.7 646.5 648.1 644.3 6 Bankers acceptances held3... 7.6 7.5 7.6 7.6 7.8 7.6 7.4 7.5 7.3 7.4 7.5 7.7 7 Other commercial and industrial 632.7 636.0 638.3 636.7 637.4 636.7 637.7 637.1 636.4 639.1 640.5 636.7 8 U.S. addressees , 627.9 631.0 634.0 632.2 633.2 632.5 633.4 632.6 631.7 634.0 635.3 631.1 9 Non-U.S. addressees 4.9 4.9 4.3 4.4 4.3 4.3 4.3 4.5 4.7 5.1 5.3 5.5 10 Real estate 774.9 782.7 790.8 798.9 805.9 814.5 818.0 822.5 827.7 832.0 836.5 837.2 11 Individual 379.2 379.4 377.8 378.4 377.6 376.4 378.2 378.6 379.7 378.7 378.9 375.8 12 Security 38.3 37.0 36.8 35.5 35.0 38.7 44.6 41.3 40.5 39.6 40.6 43.2 13 Nonbank financial institutions 32.9 33.7 34.0 34.1 34.4 34.7 35.0 35.3 35.2 35.0 34.9 34.4 14 Agricultural 30.8 30.8 30.8 31.0 31.1 31.3 31.5 31.8 32.2 32.5 33.0 33.6 15 State and political subdivisions 39.1 38.6 38.2 37.9 37.3 36.4 35.8 35.2 35.0 34.7 34.2 33.5 16 Foreign banks 7.9 8.3 8.6 8.7 7.4 7.0 7.9 8.1 9.0 8.2 7.4 6.6 17 Foreign official institutions 3.3 3.2 3.3 3.3 3.2 3.2 3.2 3.3 3.2 3.2 3.2 3.0 18 Lease financing receivables 32.1 32.4 32.4 32.6 32.4 32.6 32.7 32.8 33.3 32.9 32.7 32.4 19 All other loans 41.8 43.0 42.8 42.3 44.5 43.6 48.2 45.4 43.2 43.3 44.3 45.2 Not seasonally adjusted 20 Total loans and securities2 2,616.7 2,630.0 2,647.7 2,654.5 2,670.8 2,677.5 2,700.1 2,707.0 2,715.5 2,720.1 2,730.5 2,721.0 21 U.S. government securities 419.0 423.8 427.5 430.3 437.1 439.9 444.0 448.2 450.8 454.1 451.5 455.8 22 Other securities 180.3 179.7 179.5 178.0 177.5 176.4 179.1 179.0 178.0 176.6 176.3 177.9 23 Total loans and leases2 2,017.3 2,026.4 2,040.7 2,046.2 2,056.3 2,061.1 2,077.1 2,079.8 2,086.7 2,089.3 2,102.7 2,087.2 24 Commercial and industrial 639.5 645.8 650.6 648.3 647.7 644.6 643.5 640.9 641.2 644.5 648.0 641.1 25 Bankers acceptances held3... 7.7 7.5 7.4 7.6 8.0 7.3 7.2 7.5 7.4 7.6 7.7 7.6 26 Other commercial and industrial 631.7 638.4 643.2 640.8 639.7 637.3 636.3 633.4 633.8 636.9 640.3 633.5 27 U.S. addressees4... 626.9 633.6 638.6 636.3 635.5 632.9 631.8 628.8 629.1 631.9 635.1 628.2 28 Non-U.S. addressees4 4.8 4.7 4.6 4.5 4.3 4.4 4.5 4.6 4.7 5.0 5.2 5.3 29 Real estate 772.1 779.4 788.4 798.0 806.0 814.9 819.9 824.2 830.3 834.0 837.9 837.1 30 Individual 378.7 376.6 375.1 376.6 375.6 374.1 377.4 380.4 380.6 379.8 383.8 380.0 31 Security 39.6 38.1 38.3 34.9 37.1 38.6 43.9 40.3 39.5 38.5 40.0 41.0 32 Nonbank financial institutions 32.5 33.0 33.7 33.8 34.5 34.6 35.0 35.0 35.1 35.4 36.3 35.0 33 Agricultural 29.9 29.5 29.8 30.6 31.4 32.1 32.5 32.9 33.1 32.9 32.9 32.9 34 State and political subdivisions 39.3 38.6 38.2 37.8 37.2 36.2 35.7 35.2 35.0 34.6 34.0 34.1 35 Foreign banks 7.8 7.9 8.3 8.6 7.5 7.1 8.0 8.2 9.3 8.4 7.6 6.6 36 Foreign official institutions 3.3 3.2 3.3 3.3 3.2 3.2 3.2 3.3 3.2 3.2 3.2 3.0 37 Lease financing receivables .... 32.3 32.4 32.4 32.5 32.2 32.4 32.6 32.8 33.3 33.1 32.8 32.8 38 All other loans 42.5 42.0 42.5 41.6 43.9 43.3 45.4 46.6 46.0 45.0 46.2 43.5 1. Data have been revised to reflect new benchmark and seasonal adjustments. (407) release. For address, see inside front cover. Historical data may be obtained from the Division of Monetary Affairs, Banking 2. Excludes loans to commercial banks in the United States. and Money Market Statistics section, Board of Governors of the Federal Reserve 3. Includes nonfinancial commercial paper held. System, Washington, D.C., 20551. These data also appear in the Board's G.7 4. United States includes the 50 states and the District of Columbia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions A17 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Monthly averages, billions of dollars 1990' Source Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Seasonally adjusted 1 Total nondeposit funds2 267.6 270.9 268.9 269.0 272.3 281.1 283.7 282.9 290.7 291.5 286.8 276.6 2 Net balances due to related foreign offices ... 15.9 19.0 18.7 25.8 17.2 19.0 19.0 21.5 29.9 30.1 34.6 33.4 3 Borrowings from other than commercial banks in United States4 251.7 251.8 250.3 243.2 255.1 262.0 264.8 261.3 260.8 261.5 252.3 243.2 4 Domestically chartered banks 200.2 197.2 193.7 186.6 196.8 201.6 202.2 198.8 196.9 195.1 187.2 182.4 5 Foreign-related banks 51.5 54.6 56.6 56.5 58.3 60.4 62.6 62.5 63.9 66.4 65.1 60.8 Not seasonally adjusted 6 Total nondeposit funds2 270.9 276.5 269.7 277.3 275.1 277.2 282.5 278.4 287.6 292.7 281.3 272.0 7 Net balances due to related foreign offices3 ... 15.9 18.3 16.7 28.5 17.4 16.5 18.5 21.5 29.5 30.8 37.1 33.1 8 Domestically chartered banks -11.1 -11.5 -10.6 -1.3 -6.1 -5.8 -3.4 -4.2 -1.0 .6 -4.2 -15.3 9 Foreign-related banks 26.9 29.8 27.3 29.8 23.5 22.4 21.9 25.7 30.5 30.2 41.3 48.4 10 Borrowings from other than commercial banks in United States4 255.0 258.2 253.0 248.8 257.7 260.6 264.0 256.9 258.0 262.0 244.2 238.9 11 Domestically chartered banks 202.7 202.3 194.8 191.6 197.7 199.1 201.7 195.6 195.0 197.6 182.9 177.9 12 Federal funds and security RP borrowings5 199.0 197.8 191.0 188.3 194.6 196.2 198.1 191.6 191.7 194.8 180.1 174.7 13 Other6 3.7 4.5 3.7 3.4 3.2 2.9 3.6 4.0 3.2 2.9 2.8 3.2 14 Foreign-related banks6 52.3 55.9 58.2 57.2 60.0 61.5 62.3 61.3 63.1 64.3 61.3 61.0 MEMO Gross large time deposits7 15 Seasonally adjusted 459.9 459.0 456.2 454.4 451.5 451.9 449.2 443.6 437.9 435.2 431.8 441.0 16 Not seasonally adjusted 458.7 458.8 453.9 454.0 451.0 450.5 450.1 445.4 440.4 437.8 431.8 439.4 U.S. Treasury demand balances at commercial banks8 17 Seasonally adjusted 18.6 19.8 21.3 19.2 20.6 15.0 32.7 26.0 22.3 25.2 24.4 25.9 18 Not seasonally adjusted 22.0 16.7 20.0 25.2 20.9 15.2 23.5 31.0 20.9 19.2 23.0 29.6 1. Data have been revised to reflect new benchmark and seasonal adjustments. positions with own IBFs. Historical data may be obtained from the Division of Monetary Affairs, Banking 4. Other borrowings are borrowings through any instrument, such as a and Money Market Statistics section, Board of Governors of the Federal Reserve promissory note or due bill, given for the purpose of borrowing money for the System, Washington, D.C., 20551. Commercial banks are those in the 50 states banking business. This includes borrowings from Federal Reserve Banks and and the District of Columbia with national or state charters plus agencies and from foreign banks, term federal funds, loan RPs, and sales of participations in branches of foreign banks, New York investment companies majority owned by pooled loans. foreign banks, and Edge Act corporations owned by domestically chartered and 5. Based on daily average data reported weekly by approximately 120 large foreign banks. banks and quarterly or annual data reported by other banks. These data also appear in the Board's G.10 (411) release. For address, see 6. Figures are partly daily averages and partly averages of Wednesday data. inside front cover. 7. Time deposits in denominations of $100,000 or more. Estimated averages of 2. Includes federal funds, RPs, and other borrowing from nonbanks and net daily data. balances due to related foreign offices. 8. U.S. Treasury demand deposits and Treasury tax-and-loan notes at com- 3. Reflects net positions of U.S. chartered banks, Edge Act corporations, and mercial banks. Averages of daily data. U.S. branches and agencies of foreign banks with related foreign offices plus net Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • April 1991 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series1 Billions of dollars 1990' 1991 AAccccoouunntt Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. ALL COMMERCIAL BANKING INSTITUTIONS2 1 Loans and securities 2,821.2 2,839.0 2,847.1 2,871.6 2,878.8 2,896.8 2,887.1 2,931.3 2,925.1 2,936.9 2,908.6 2 Investment securities 576.8 583.0 587.2 589.8 588.3 597.2 601.7 604.9 603.3 605.6 612.8 3 U.S. government securities 405.9 413.1 417.8 422.2 421.7 429.1 434.5 438.0 437.6 439.6 447.6 4 Other 170.8 170.0 169.3 167.6 166.6 168.0 167.2 166.8 165.7 166.0 165.2 5 Trading account assets 26.0 23.9 21.4 23.7 27.7 29.3 21.4 27.4 25.0 22.0 24.1 6 Total loans 2,218.5 2,232.1 2,238.5 2,258.1 2,262.8 2,270.4 2,264.0 2,299.0 2,296.9 2,309.3 2,271.7 7 Interbank loans 191.6 190.5 192.8 202.2 204.8 200.1 191.0 207.9 207.0 204.0 193.2 8 Loans excluding interbank 2,026.9 2,041.5 2,045.7 2,055.9 2,057.9 2,070.3 2,073.0 2,091.2 2,089.8 2,105.3 2,078.5 9 Commercial and industrial 646.2 650.4 645.8 646.9 641.5 639.7 639.7 643.4 644.4 650.8 637.4 10 Real estate 781.6 790.2 801.7 807.9 816.0 820.1 825.0 831.5 833.7 838.3 836.9 11 Individual 375.5 376.7 376.6 376.8 374.8 379.4 381.2 380.8 380.5 384.7 378.2 12 All other 223.6 224.2 221.7 224.3 225.6 231.1 227.1 235.5 231.2 231.5 225.9 13 Total cash assets 212.9 210.6 237.7 219.6 210.7 207.7 213.7 220.8 216.7 217.9 199.2 14 Reserves with Federal Reserve Banks. 32.0 31.5 27.6 31.8 29.8 30.0 33.6 29.7 33.0 23.4 16.5 15 Cash in vault 27.7 28.5 29.9 28.9 28.8 30.3 29.3 29.4 32.8 32.0 30.4 16 Cash items in process of collection ... 80.0 80.1 100.7 86.2 79.6 77.5 81.1 85.4 78.4 86.0 74.7 17 Demand balances at U.S. depository institutions 27.4 26.3 32.0 27.7 27.3 27.3 27.0 28.5 28.4 29.6 28.1 18 Other cash assets 45.8 44.2 47.5 45.0 45.2 42.5 42.8 47.8 44.2 46.8 49.6 19 Other assets 209.1 204.8 197.0 207.5 205.3 220.8 226.6 230.1 226.6 245.1 250.0 20 Total assets/total liabilities and capital.... 3,243.2 3,254.4 3,281.8 3,298.6 3,294.8 3,325.3 3,327.4 3,382.2 3,368.5 3,399.9 3,357.8 21 Deposits 2,251.3 2,258.3 2,295.3 2,282.4 2,290.9 2,296.5 2,300.1 2,332.0 2,319.9 2,363.4 2,334.6 22 Transaction deposits 594.3 600.9 618.1 598.6 590.1 589.1 595.3 612.1 598.1 637.1 587.9 23 Savings deposits 551.8 548.8 554.5 556.4 561.3 565.6 563.5 570.5 573.1 573.3 573.9 24 Time deposits 1.105.3 1,108.6 1,122.7 1,127.5 1,139.5 1,141.8 1,141.3 1,149.4 1,148.8 1,152.9 1,172.8 25 Borrowings 545.4 563.9 546.1 572.6 562.1 579.9 570.9 591.0 570.6 548.7 529.7 26 Other liabilities 230.8 216.0 223.3 223.9 220.5 226.2 233.1 236.0 255.3 264.4 268.9 27 Residual (assets less liabilities) 215.7 216.2 217.1 219.7 221.2 222.8 223.4 223.3 222.7 223.5 224.6 MEMO 28 U.S. government securities (including trading account) 423.8 428.2 430.9 436.1 440.4 446.3 445.1 454.2 451.9 451.1 459.4 29 Other securities (including trading account) 179.0 178.7 177.6 177.4 175.6 180.2 178.0 178.1 176.4 176.5 177.5 DOMESTICALLY CHARTERED COMMERCIAL BANKS3 30 Loans and securities 2.570.5 2,584.1 2,589.5 2,608.3 2,614.4 2,631.8 2,620.5 2,658.4 2,645.1 2,654.2 2,627.8 31 Investment securities 547.2 551.9 558.6 559.2 557.3 566.1 569.0 571.5 569.8 570.5 575.3 32 U.S. government securities 391.2 398.0 404.8 407.7 406.5 414.1 417.9 420.9 420.8 421.7 426.5 33 Other 156.0 154.0 153.7 151.5 150.8 152.0 151.2 150.6 149.1 148.8 148.8 34 Trading account assets 26.0 23.9 21.4 23.7 27.7 29.3 21.4 27.4 25.0 22.0 24.1 35 Total loans 1,997.3 2,008.3 2,009.5 2,025.5 2,029.4 2,036.4 2,030.0 2,059.5 2,050.3 2,061.7 2,028.5 36 Interbank loans 148.3 148.9 144.2 153.3 153.7 153.7 146.0 164.0 157.4 160.0 151.7 37 Loans excluding interbank 1,849.0 1,859.3 1,865.4 1,872.2 1,875.7 1,882.6 1,884.0 1,895.5 1,892.9 1,901.7 1,876.8 38 Commercial and industrial 519.4 524.0 521.4 520.1 517.3 514.0 513.2 515.4 513.4 512.7 504.4 39 Real estate 747.8 753.9 764.5 769.7 776.7 779.5 784.0 789.8 791.6 796.4 794.0 40 Individual 375.5 376.7 376.6 376.8 374.8 379.4 381.2 380.8 380.5 384.7 378.2 41 All other 206.3 204.7 202.9 205.5 206.9 209.8 205.7 209.5 207.4 207.9 200.2 42 Total cash assets 187.3 186.3 209.7 193.3 184.7 181.7 187.0 189.3 187.7 188.3 166.6 43 Reserves with Federal Reserve Banks. 29.8 29.8 26.6 30.9 28.9 28.0 32.1 28.5 31.5 23.0 15.3 44 Cash in vault 27.7 28.5 29.9 28.9 28.8 30.3 29.2 29.4 32.8 32.0 30.3 45 Cash items in process of collection ... 78.5 78.7 99.3 84.2 78.1 75.9 79.0 83.6 76.4 83.9 72.9 46 Demand balances at U.S. depository institutions 25.6 24.6 30.0 25.9 25.6 25.0 25.1 26.6 26.2 27.6 26.2 47 Other cash assets 25.7 24.7 23.9 23.4 23.4 22.5 21.5 21.2 20.9 21.8 22.0 48 Other assets 136.4 133.5 136.0 141.2 139.1 145.6 152.3 153.6 155.0 167.8 167.0 49 Total assets/liabilities and capital 2,894.2 2,903.9 2,935.2 2,942.9 2,938.2 2,959.1 2,959.7 3,001.3 2,987.8 3,010.3 2,961.4 50 Deposits 2,169.4 2,175.7 2,213.0 2,200.0 2,209.2 2,214.9 2,220.1 2,253.8 2,243.3 2,283.5 2,236.2 51 Transaction deposits 584.5 591.3 608.3 588.5 580.2 578.8 584.4 601.5 587.7 626.1 577.4 52 Savings deposits 548.8 545.8 551.6 553.4 558.3 562.6 560.4 567.4 569.8 570.0 570.6 53 Time deposits 1,036.1 1,038.6 1,053.2 1,058.1 1,070.7 1,073.5 1,075.3 1,085.0 1,085.8 1,087.4 1,088.1 54 Borrowings 393.1 406.4 393.6 410.3 396.0 404.3 395.8 400.4 394.1 375.6 380.0 55 Other liabilities 119.9 109.5 115.1 116.5 115.3 120.7 124.1 127.5 131.5 131.4 124.3 56 Residual (assets less liabilities) 211.8 212.4 213.4 216.2 217.7 219.2 219.7 219.6 219.0 219.8 220.9 MEMO 57 Real estate loans, revolving 52.0 53.2 54.1 55.0 56.3 57.7 58.6 60.6 61.1 61.7 63.0 58 Real estate loans, other 695.8 700.7 710.3 714.7 720.4 721.7 725.4 729.2 730.5 734.7 731.0 1. Data have been revised because of benchmarking beginning April 1990. Back condition report data. Data for other banking institutions are estimates made for data are available from the Banking and Monetary Statistics section. Board of the last Wednesday of the month based on a weekly reporting sample of Governors of the Federal Reserve System, Washington, D.C., 20551. These data foreign-related institutions and quarter-end condition reports. 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. 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 AAddjjuussttmmeenntt AAccccoouunntt bbaannkk 1199990055 Nov. 7 Nov. 14 Nov. 21 Nov. 28 Dec. 5 Dec. 12 Dec. 19 Dec. 26 1 Cash and balances due from depository institutions 98,474 124,953 106,130 107,639 107,019 106,643 107,105 105,231 1,656 2 Total loans, leases, and securities, net 1,305,927 1,311,348 1,305,215 1,299,570 1,308,365 1,301,990 1,303,670 1,300,989 22,869 3 U.S. Treasury and government agency 184,961 183,743 183,668 180,844 182,165 179,635 176,340 174,400 2,697 4 Trading account 16,783 15,538 16,186 14,279 16,000 14,185 12,596 11,547 4 Investment account 168,178 168,205 167,482 166,565 166,165 165,450 163,743 162,852 2,694 6 Mortgage-backed securities 82,237 82,126 82,251 81,521 81,523 80,703 79,303 78,995 1,463 All other maturing in 7 One year or less 15,159 15,020 15,254 15,271 15,678 15,956 1166,,226644 15,810 668844 8 Over one through five years 41,685 41,855 41,420 41,281 40,148 40,112 39,627 39,367 403 9 Over five years 29,096 29,204 28,557 28,492 28,815 28,679 28,549 28,680 143 10 Other securities 60,533 60,421 60,108 60,107 59,762 59,275 59,176 59,442 890 11 Trading account 1,364 1,406 1,406 1,529 1,355 910 1,064 1,242 0 1? Investment account 59,170 59,015 58,702 58,578 58,407 58,366 58,112 58,200 889 IS States and political subdivisions, by maturity 31,170 30,958 30,648 30,465 30,102 29,937 29,520 29,459 539 14 One year or less 3,797 3,752 3,646 3,649 3,650 3,628 3,589 3,560 67 IS Over one year 27,373 27,206 27,002 26,816 26,452 26,309 25,931 25,899 471 16 Other bonds, corporate stocks, and securities 28,000 28,057 28,054 28,113 28,306 28,428 28,592 28,740 350 17 Other trading account assets 9,557 9,178 8,368 8,729 8,617 8,292 9,004 8,749 399 18 74,018 77,276 72,837 71,300 76,716 76,078 75,711 76,078 2,275 19 To commercial banks 50,193 55,265 50,127 48,111 54,392 50,972 50,775 52,782 2,227 ?0 To nonbank brokers and dealers in securities 18,613 17,690 18,158 19,054 18,173 21,252 20,299 19,048 4488 71 To others 5,212 4,320 4,552 4,134 4,150 3,853 4,636 4,248 00 77 Other loans and leases, gross 1,016,970 1,020,866 1,020,413 1,018,709 1,021,299 1,018,922 1,023,606 1,022,259 17,236 73 Other loans, gross 989,630 993,458 993,060 991,382 993,968 991,638 996,531 995,166 17,183 74 Commercial and industrial 19,592 319,017 319,400 317,822 319,262 317,646 316,592 316,609 4,488 75 Bankers acceptances and commercial paper 1,520 1,488 1,338 1,384 1,493 1,380 1,315 1,363 0 ?6 All other 318,071 317,529 318,061 316,438 317,769 316,266 315,278 315,246 4,487 77 U.S. addressees 316,609 315,886 316,601 315,017 316,327 314,838 313,902 313,802 4,487 28 Non-U.S. addressees 1,462 1,643 1,460 1,421 1,442 1,428 1,376 1,444 0 79 Real estate loans 383,252 384,187 384,903 383,952 386,994 387,157 388,401 387,106 8,167 30 Revolving, home equity 32,676 32,803 32,864 32,939 33,323 32,946 33,198 33,205 954 31 All other 350,576 351,384 352,039 351,013 353,671 354,211 355,203 353,902 7,213 32 To individuals for personal expenditures 172,654 172,754 172,993 173,366 173,785 174,448 175,727 175,844 3,784 33 To depository and financial institutions 50,624 51,612 51,300 51,242 51,192 49,879 51,465 50,537 14 34 Commercial banks in the United States 22,571 22,943 23,632 23,740 22,719 21,551 23,297 22,186 0 35 Banks in foreign countries 3,993 4,378 4,159 4,208 4,326 4,344 4,038 4,180 0 36 Nonbank depository and other financial institutions . 24,060 24,292 23,510 23,294 24,146 23,984 24,130 24,172 14 37 For purchasing and carrying securities 12,958 14,020 13,062 14,020 12,062 12,721 13,344 12,990 9 38 To finance agricultural production 6,065 6,046 5,930 5,858 5,822 5,817 5,848 5,910 94 39 To states and political subdivisions 21,611 21,611 21,490 21,415 21,256 21,112 20,950 20,940 261 40 To foreign governments and official institutions 1,352 1,431 1,492 1,402 1,489 1,563 1,280 1,424 0 41 AH other 21,522 22,778 22,490 22,306 22,106 21,295 22,924 23,804 366 4? Lease financing receivables 27,341 27,408 27,354 27,326 27,331 27,285 27,075 27,093 53 43 LESS: Unearned income —, 4,232 4,224 4,214 4,196 4,154 4,146 4,128 4,129 43 44 Loan and lease reserve5 35,881 35,910 35,965 35,923 36,039 36,066 36,038 35,810 585 45 Other loans and leases, net 976,857 980,731 980,234 978,590 981,105 978,710 983,439 982,320 16,608 46 All other assets 139,382 139,846 141,369 142,960 144,959 144,443 148,448 153,457 1,996 47 Total assets 1,543,784 1,576,148 1,552,714 1,550,169 1,560,343 1,553,076 1,559,223 1,559,677 26,521 48 Demand deposits 213,880 234,321 221,678 217,214 226,104 224,606 230,851 238,449 3,706 49 Individuals, partnerships, and corporations 173,7% 188,752 178,123 173,928 182,170 181,317 184,995 191,867 3,327 50 States and political subdivisions 5,825 5,757 7,201 6,427 6,796 6,640 6,882 7,441 73 51 U.S. government 1,427 1,593 2,070 1,038 1,661 1,448 1,909 1,62316 16 57 Depository institutions in the United States 18,678 23,771 19,568 19,915 20,469 19,542 21,847 21,169 104 53 Banks in foreign countries 5,668 6,024 5,769 5,335 5,145 6,455 5,538 5,735 0 54 Foreign governments and official institutions 648 538 590 638 769 502 790 557 0 55 Certified and officers' checks 7,839 7,886 8,356 9,934 9,093 8,701 8,890 10,057 185 56 Transaction balances other than demand deposits 80,723 79,712 79,698 78,354 83,298 81,456 82,670 82,642 2,159 57 Nontransaction balances 756,352 756,440 754,987 753,989 759,755 758,667 757,988 756,632 16,261 58 Individuals, partnerships, and corporations 720,373 720,510 718,959 717,988 724,031 722,715 722,887 721,980 15,692 59 States and political subdivisions 28,476 28,471 28,642 28,675 28,512 28,750 27,979 27,526 516 60 U.S. government 1,009 1,003 1,014 1,019 1,014 1,008 1,007 1,004 3 61 Depository institutions in the United States 6,056 6,007 5,925 5,862 5,756 5,744 5,646 5,598 49 6? Foreign governments, official institutions, and banks . 439 450 447 445 442 450 469 524 0 63 Liabilities for borrowed money 287,438 300,180 288,497 290,571 281,352 277,685 278,501 272,666 2,691 64 Borrowings from Federal Reserve Banks 0 227 0 0 0 90 0 4,281 0 65 Treasury tax-and-loan notes 9,345 9,558 13,132 16,243 4,767 4,850 23,381 25,424 0 All other liabilities for borrowed money6 278,093 290,395 275,365 274,328 276,585 272,745 255,120 242,960 2,691 67 Other liabilities and subordinated notes and debentures . 100,993 100,736 103,750 105,445 105,305 105,499 104,492 103,931 207 68 Total liabilities 1,439,386 1,471,389 1,448,610 1,445,573 1,455,814 1,447,913 1,454,502 1,454,319 25,024 69 Residual (total assets minus total liabilities)7 104,397 104,759 104,104 104,596 104,529 105,162 104,721 105,358 1,496 MEMO 70 Total loans and leases (gross) and investments adjusted8 , 1,273,277 1,273,275 1,271,635 1,267,838 1,271,447 1,269,680 1,269,764 1,265,960 21,270 71 Total loans and leases (gross) adjusted8 1,018,225 1,019,933 1,019,492 1,018,158 1,020,902 1,022,477 1,025,245 1,023,370 17,284 77. Time deposits in amounts of $100,000 or more 208,704 207,538 206,728 206,049 205,508 204,806 202,167 201,087 2,222 73 U.S. Treasury securities maturing in one year or less — 15,421 15,376 15,224 15,104 15,245 15,426 14,264 14,112 485 74 Loans sold outright to affiliates—total9 277 281 278 263 250 259 262 267 0 75 Commercial and industrial 136 150 152 140 135 135 138 151 0 76 Other 140 131 125 123 115 124 124 116 0 77 Nontransaction savings deposits (including MMDAs) 290,268 291,347 290,208 289,582 292,945 292,352 291,425 290,94 6,046 1. Beginning Jan. 6, 1988, the "Large bank" reporting group was revised 6. Includes federal funds purchased and securities sold under agreements to somewhat, eliminating some former reporters with less than $2 billion of assets repurchase; for information on these liabilities at banks with assets of $1 billion and adding some new reporters with assets greater than $3 billion. or more on Dec. 31, 1977, see table 1.13. 2. These amounts represent accumulated adjustments originally made to offset 7. This is not a measure of equity capital for use in capital-adequacy analysis or the cumulative effects of bank mergers during the calendar year. The adjustment for other analytic uses. data for 1990 should be added to the reported data for 1990 to establish 8. Exclusive of loans and federal funds transactions with domestic commercial comparability with data reported for 1991. banks. 3. Includes U.S. government-issued or guaranteed certificates of participation 9. Loans sold are those sold outright to a bank's own foreign branches, in pools of residential mortgages. nonconsolidated nonbank affiliates of the bank, the bank's holding company (if Digitized for FR4.A ISncEluRde s securities purchased under agreements to resell. not a bank), and nonconsolidated nonbank subsidiaries of the holding company. 5. Includes allocated transfer risk reserve. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • April 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 agency3 0 0 0 0 0 0 0 0 0 4 Trading account3 0 0 0 0 0 0 0 0 0 5 Investment account 24,195 24,249 24,189 23,299 22,785 23,138 23,182 22,936 22,992 6 Mortgage-backed securities4 11,850 11,841 11,968 11,789 1111,,442255 1111,,444488 1111,,444444 1111,,115511 1111,,223322 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 4,196 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 account3 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 assets3 0 0 0 0 0 0 0 0 0 Loans and leases 18 Federal funds sold5 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 13,196 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 174,436 171,628 173,760 172,930 173,429 172,796 172,197 174,968 173,318 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 All other 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 62,6% 62,787 62,%3 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 assets7 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 33,,331155 44,,444433 33,,770022 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 money8 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) adjusted10 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. Digitized for FiRn pAoSolEs Rof residential mortgages. 10. Exclusive of loans and federal funds transactions with domestic commerhttp://fraser.stlo5u. isInfceldud.eosr gse/c urities purchased under agreements to resell. cial banks. 6. Includes allocated transfer risk reserve. Federal Reserve Bank of St. Louis

Weekly Reporting Commercial Banks A21 1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS1 Assets and Liabilities Millions of dollars, Wednesday figures 1990 AAccccoouunntt 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 3,266 2,037 2,725 1,607 2,487 2,366 2,844 2,760 2,531 8 137,247 138,527 138,254 139,164 140,025 141,868 142,615 142,738 143,721 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 2,579 2,682 2,694 2,895 3,020 3,123 22,,773399 22,,882277 33,,003388 11 All other 75,046 75,219 75,514 76,055 76,534 77,546 78,236 79,037 80,833 1? U.S. addressees 73,626 73,684 73,949 74,519 74,870 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 25,760 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 199 204 213 216 207 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 71 All other3 2,004 2,362 2,348 2,380 2,387 2,501 2,553 2,467 2,650 ??, Other assets (claims on nonrelated parties) .. 33,200 33,593 33,227 33,917 33,742 33,877 34,624 34,346 34,060 ?3 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 balances4 . 3,983 3,928 3,999 4,266 4,405 4,295 4,597 4,334 4,603 77 Individuals, partnerships, and corporations 2,664 2,700 2,690 2,957 2,929 22,,990077 22,,777755 22,,991166 33,,000011 78 Other 1,319 1,228 1,309 1,309 1,476 1,388 1,822 1,418 1,602 29 Nontransaction accounts5 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 30,908 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 3? Borrowings from other than directly related institutions 118,298 116,939 117,215 116,206 110,249 115,015 111,101 111111,,661155 110066,,998866 33 Federal funds purchased6 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 26,648 26,819 28,919 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 38,005 37,374 3355,,003399 38 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 4? 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 • April 1991 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1990 1986 1987 1988 1989 1990 Dec. Dec. Dec. Dec. Dec. July Aug. Sept. Oct. Nov. Dec. Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 329,991 358,056 457,297 529,055 565,116 545,849 546,691 559,593 557,731 561,448 565,116 Financial companies' Dealer-placed paper2 2 Total 110011,,007722 110022,,884444 116600,,009944 118877,,008844 221199,,882233 119999,,446666 119999,,009999 220055,,009933 220033,,998877 221144,,119999 221199,,882233 3 Bank-related (not seasonally adjusted)3 2,265 1,428 1,248 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Directly placed paper4 4 Total 151,820 173,980 194,537 212,210 200,800 202,829 202,217 204,065 204,273 220033,,228899 220000,,880000 5 Bank-related (not seasonally adjusted)3 40,860 43,173 43,155 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 6 Nonfinancial companies5 77,099 81,232 102,666 129,761 144,493 143,554 145,375 150,435 149,471 143,960 144,493 Bankers dollar acceptances (not seasonally adjusted)6 7 Total 64,974 70,565 66,631 62,972 51,863 52,006 52,324 50,469 52,093 53,968 51,863 Holder 8 Accepting banks 13,423 10,943 9,086 9,433 9,045 9,628 9,944 9,366 9,189 8,751 9,045 9 Own bills 11,707 9,464 8,022 8,510 7,698 8,395 7,895 7,944 7,868 7,535 7,698 10 Bills bought 1,716 1,479 1,064 924 1,327 1,233 2,049 1,421 11,,332211 11,,221177 11,,332277 Federal Reserve Banks 11 Own account 0 0 0 0 0 0 0 0 0 0 0 12 Foreign correspondents 1,317 965 1,493 1,066 918 1,571 1,560 1,333 1,145 880 918 13 Others 50,234 58,658 56,052 52,473 41,900 40,806 40,821 39,770 41,760 44,337 41,900 Basis 14 Imports into United States 14,670 16,483 14,984 15,651 12,6% 13,691 13,188 12,723 12,408 12,758 12,6% 15 Exports from United States 12,960 15,227 14,410 13,683 12,686 12,186 12,221 11,889 13,238 13,865 12,686 16 All other 37,344 38,855 37,237 33,638 26,481 26,129 26,915 25,856 26,447 27,345 26,481 1. Institutions engaged primarily in activities such as, but not limited to, 5. Includes public utilities and firms engaged primarily in such activities as commercial savings, and mortgage banking; sales, personal, and mortgage fi- communications, construction, manufacturing, mining, wholesale and retail trade, nancing; factoring, finance leasing, and other business lending; insurance under- transportation, and services. writing; and other investment activities. 6. Beginning January 1988, the number of respondents in the bankers accep- 2. Includes all financial company paper sold by dealers in the open market. tance survey were reduced from 155 to 111 institutions—those with $100 million 3. Beginning January 1989, bank-related series have been discontinued. or more in total acceptances. The panel is revised every January and currently has 4. As reported by financial companies that place their paper directly with about 100 respondents. The current reporting group accounts for over 90 percent investors. of total acceptances activity. 1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans Percent per year Date of change Period Av r e a r t a e g e Period Av r e a r t a e g e Period 1988— 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 Apr. .. Nov. 28 10.50 1988—Jan. 8.75 May ... 11.50 May ... Feb. 8.51 June .. 11.07 June .. 1989— 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 1991— Feb. 4 9.00 Oct. 10.00 1991— Jan. ... Nov. 10.05 Feb. 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

Financial Markets A23 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 1991 week 1991, week ending ending IInnssttrruummeenntt 11998888 11998899 11999900 Oct. Nov. Dec. Jan. Dec. 28 Jan. 4 Jan. 11 Jan. 18 Jan. 25 MONEY MARKET RATES 1 Federal funds1'2'3 7.57 9.21 8.10 8.11 7.81 7.31 6.91 7.16 7.17 6.40 6.77 6.88 2 Discount window boiTOwing2' 6.20 6.93 6.98 7.00 7.00 6.79 6.50 6.50 6.50 6.50 6.50 6.50 Commercial paper3'4' 3 7.58 9.11 8.15 8.04 7.84 8.28 7.12 9.01 7.57 7.22 7.27 6.83 4 7.66 8.99 8.06 7.98 7.91 7.80 7.10 8.14 7.31 7.15 7.25 6.92 5 6-month 7.68 8.80 7.95 7.81 7.74 7.49 7.02 7.66 7.17 7.08 7.15 6.86 Finance paper, directly placed3, '6 6 7.44 8.99 8.00 7.92 7.64 77..6622 66..9955 77..5599 77..1199 77..0011 77..0099 66..6688 7 7.38 8.72 7.87 7.80 7.75 7.32 6.92 7.14 7.02 6.97 7.06 6.77 8 6-month 7.14 8.16 7.53 7.50 7.42 6.95 6.59 6.73 6.70 6.60 6.60 6.55 Bankers acceptances • ' 9 7.56 8.87 7.93 7.85 7.82 7.60 6.96 77..9955 77..0088 77..0055 77..1133 66..7766 10 6-month 7.60 8.67 7.80 7.67 7.58 7.25 6.84 7.38 6.90 6.96 7.00 6.63 Certificates of deposit, secondary market3'8 11 7.59 9.11 8.15 8.03 7.92 8.27 7.10 9.17 7.39 7.28 77..2266 66..7777 1? 7.73 9.09 8.15 8.06 8.03 7.82 7.17 8.13 7.35 7.30 7.33 6.94 13 7.91 9.08 8.17 8.05 7.95 7.64 7.17 7.78 7.31 7.30 7.34 6.97 14 Eurodollar deposits, 3-month3' 7.85 9.16 8.16 8.06 8.04 7.87 7.23 8.19 7.67 7.40 7.39 7.20 U.S. Treasury bills Secondary market3' 15 6.67 8.11 7.50 7.17 7.06 6.74 6.22 66..4488 66..4477 66..3311 66..0077 66..1122 16 6.91 8.03 7.46 7.16 7.03 6.70 6.28 6.59 6.44 6.36 6.20 6.20 17 1-year 7.13 7.92 7.35 7.06 6.85 6.61 6.25 6.51 6.37 6.30 6.22 6.19 Auction average ' ' 18 6.68 8.12 7.51 7.19 7.07 6.81 6.30 6.52 6.52 6.52 6.12 6.14 19 6-month 6.92 8.04 7.47 7.20 7.04 6.76 6.34 6.57 6.48 6.51 6.21 6.21 20 1-year 7.17 7.91 7.36 7.01 6.81 6.58 6.22 n.a. n.a. n.a. 6.22 n.a. CAPITAL MARKET RATES U.S. Treasury notes and bonds Constant maturities 21 1-year 7.65 8.53 7.89 7.55 7.31 7.05 6.64 6.95 6.78 6.71 6.62 6.58 22 2-year 8.10 8.57 8.16 7.88 7.60 7.31 7.13 7.28 7.12 7.15 7.18 7.09 23 3-year 8.26 8.55 8.26 8.07 7.74 7.47 7.38 7.49 7.34 7.41 7.43 7.35 24 5-year 8.47 8.50 8.37 8.33 8.02 7.73 7.70 7.79 7.62 7.77 7.77 7.66 25 7-year 8.71 8.52 8.52 8.59 8.28 8.00 7.97 8.08 7.93 8.06 8.02 7.92 26 10-year 8.85 8.49 8.55 8.72 8.39 8.08 8.09 8.15 8.00 8.18 8.15 8.04 27 30-year 88..9966 8.45 8.61 8.86 8.54 8.24 8.27 8.31 8.18 8.38 8.31 8.22 Composite14 28 Over 10 years (long-term) 8.98 88..5588 88..7744 8.93 8.60 8.31 8.33 8.41 8.24 8.44 8.38 8.28 State and local notes and bonds Moody's series15 29 Aaa 7.36 7.00 6.96 7.23 6.75 6.63 6.57 6.60 6.63 6.63 6.51 6.51 30 Baa 7.83 7.40 7.29 7.43 7.22 7.10 7.17 7.10 7.17 7.27 7.15 7.10 31 Bond Buyer series 77..6688 77..2233 7.27 7.49 7.18 7.09 7.08 7.14 7.09 7.15 7.10 7.06 Corporate bonds Seasoned issues 32 All industries 10.18 9.66 9.77 10.03 9.85 9.63 9.62 9.65 9.58 9.66 9.65 9.61 3i Aaa 9.71 9.26 9.32 9.53 9.30 9.05 9.04 9.04 9.02 9.05 9.08 9.05 34 Aa 9.94 9.46 9.56 9.77 9.59 9.39 9.37 9.40 9.35 9.40 9.39 9.36 35 A 10.24 9.74 9.82 10.06 9.88 9.64 9.61 9.67 9.58 9.67 9.64 9.58 36 BBaaaa 10.83 10.18 10.36 10.74 10.62 10.43 10.45 10.47 10.40 10.51 10.51 10.44 37 AA--rraatteedd,, rreecceennttllyy ooffffeerreedd uuttiilliittyy bboonnddss''"" .... 1100..2200 99..7799 10.01 10.23 10.07 9.95 9.83 9.99 9.85 9.96 9.77 9.80 MEMO: Dividend/price ratio19 38 Preferred stocks 9.23 9.05 n.a. 9.10 8.88 8.72 8.71 8.68 8.76 8.67 8.83 8.69 39 Common stocks 3.64 3.45 n.a. 4.01 3.91 3.74 3.82 3.74 3.80 3.98 3.92 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

A24 Domestic Nonfinancial Statistics • April 1991 1.36 STOCK MARKET Selected Statistics 1990 1991 IInnddiiccaattoorr 11998888 11998899 11999900 May June July Aug. Sept. Oct. Nov. Dec. Jan. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 149.97 180.13 183.48 191.35 196.68 196.61 181.45 173.22 168.05 172.21 179.57 177.95 2 Industrial 180.83 228.04 225.81 234.85 242.42 245.86 226.73 216.81 208.58 212.81 221.86 220.69 3 Transportation 134.09 174.90 158.64 173.53 177.37 173.18 147.41 136.95 131.99 132.96 141.31 145.89 4 Utility 72.22 94.33 90.61 93.29 93.65 89.85 85.81 83.30 87.27 89.69 91.56 88.59 5 Finance 127.41 162.01 133.23 142.94 147.93 143.11 128.14 118.59 108.01 113.76 122.18 121.39 6 Standard & Poor's Corporation (1941-43 = 10)1 265.88 323.05 334.63 350.25 360.39 360.03 330.75 315.41 307.12 315.29 328.75 325.49 7 American Stock Exchange (Aug. 31, 1973 = 50? 295.08 356.67 338.36 353.82 361.62 359.09 333.49 318.53 296.67 294.88 305.54 304.08 Volume of trading (thousands of shares) 8 New York Stock Exchange 161,386 165,568 156,842 163,486 153,634 160,490 174,446 142,054 159,590 149,916 155,836 166,323 9 American Stock Exchange 9,955 13,124 13,155 14,005 12,421 12,529 15,881 11,668 11,294 10,368 11,620 10,870 Customer financing (end-of-period balances, in millions of dollars) 10 Margin credit at broker-dealers3 32,740 34,320 28,210r 31,600 31,720 32,130 30,350 29,640 28,650 27,820 28,210r 27,390 Free credit balances at brokers4 11 Margin-account5 5,660 7,040 8,050 6,215 6,490 6,385 7,140 7,285 7,245 7,300 8,050 7,435 12 Cash-account 16,595 18,505 19,285' 15,470 15,625 17,035 16,745 16,185 15,820 17,025 19,285' 18,825 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

Financial Markets A25 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1988 1989 Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. SAIF-insured institutions 1 Assets 1,350,500 1,249,055 1,225,087 1,223,350 1,210,338 1,197,787 1,174,675 1,162,555 1,157,158 1,124,903 2 Mortgages 764,513 733,729 721,450 717,687 715,422 708,550 691,239 689,084 684,975 665,960 3 Mortgage-backed securities 214,587 170,532 167,260 167,683 166,167 165,741 159,173 158,142 156,393 154,190 4 Contra-assets to mortgage assets1 37,950 25,457 22,729 23,073 21,999 22,044 20,337 19,550 19,321 18,451 5 Commercial loans 33,889 32,150 31,770 31,069 30,931 30,351 28,753 28,483 27,868 26,774 6 Consumer loans 61,922 58,685 56,821 56,805 56,639 55,659 55,171 54,661 53,381 50,512 7 Contra-assets to nonmortgage loans2 3,056 3,592 2,279 2,476 2,227 1,771 1,980 1,977 2,022 1,957 8 Cash and investment securities 186,986 166,053 157,314 162,313 153,346 152,391 155,674 150,400 153,057 148,028 n a. n a. 9 Other3 129,610 116,955 115,480 113,341 112,059 108,910 106,922 103,311 102,827 99,847 10 Liabilities and net worth 1,350,500 1,249,055 1,225,087 1,223,350 1,210,338 1,197,787 1,174,675 1,162,555 1,157,158 1,124,903 11 Savings capital 971,700 945,656 926,439 929,910 916,069 902,653 890,497 885,272 878,730 857,686 12 Borrowed money 299,400 252,230 248,135 246,875 246,646 241,943 230,169 222,442 221,872 212,240 13 FHLBB 134,168 124,577 120,633 117,489 115,620 114,047 109,733 106,127 105,882 101,694 14 Other 165,232 127,653 127,502 129,386 131,026 127,8% 120,436 116,315 115,990 110,546 15 Other 24,216 27,556 28,0% 25,997 27,341 28,807 25,151 26,743 28,240 23,862 16 Net worth n.a. 23,612 22,417 20,568 20,282 24,379 28,803 28,099 28,317 31,116 SAIF-insured federal savings banks 17 Assets 425,966 498,522 581,983 595,644 593,345 570,795 583,392 580,847 584,632 591,136 18 Mortgages 230,734 283,844 330,366 332,995 333,300 317,985 323,516 328,236 328,895 332,927 19 Mortgage-backed securities 64,957 70,499 77,016 80,059 81,030 77,781 78,001 80,474 80,994 82,418 20 Contra-assets to mortgage assets' 13,140 13,548 11,615 11,844 11,590 10,798 10,200 9,227 9,339 9,964 21 Commercial loans 16,731 18,143 20,244 20,366 20,324 19,713 19,683 18,810 18,662 18,767 22 Consumer loans 24,222 28,212 20,244 20,365 20,324 32,407 32,745 31,003 31,183 30,750 23 Contra-assets to non mortgage loans2 889 1,193 986 1,001 908 707 970 870 813 980 24 Finance leases plus interest 880 1,101 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 25 Cash and investment .. 61,029 64,538 70,054 76,158 72,618 70,999 75,081 71,354 73,756 73,602 26 Other 35,412 39,981 46,238 46,371 46,180 44,840 47,723 44,150 44,129 46,043 27 Liabilities and net worth 425,966 498,522 581,983 595,644 593,345 570,795 583,392 580,847 584,632 591,136 28 Savings capital 298,197 360,547 419,246 433,000 429,469 413,009 427,379 423,472 424,260 434,705 29 Borrowed money 99,286 108,448 124,171 126,253 126,240 123,415 121,721 118,393 120,592 119,991 30 FHLBB 46,265 57,032 63,026 63,550 63,120 61,057 60,666 61,287 62,209 61,605 31 Other 53,021 51,416 61,145 62,703 63,120 62,358 61,055 57,106 58,383 58,386 32 Other 8,075 9,041 10,347 9,435 9,982 10,307 8,889 9,245 10,128 8,253 33 Net worth 20,218 22,716 25,723 24,169 23,505 21,138 21,944 26,424 26,420 24,859 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Financial Statistics • April 1991 1.37—Continued 1990 AAccccoouunntt 11998888 11998899 Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Credit unions4 34 Total assets/liabilities and capital 174,593 183,688 186,119 192,718 193,208 195,020 195,302 194,523 196,625 197,272 35 Federal 114,566 120,666 122,885 126,690 127,250 128,648 128,142 127,564 128,715 129,086 36 State 60,027 63,022 63,234 66,028 65,958 66,372 67,160 66,959 67,910 68,186 37 Loans outstanding 113,191 122,608 121,968 121,660 122,616 123,205 123,968 124,343 126,156 127,341 n. a. n. a. 38 Federal 73,766 80,272 79,715 79,407 80,205 80,550 81,063 81,063 82,040 82,823 39 State 39,425 42,336 42,253 42,253 42,411 42,655 42,905 43,280 44,116 44,518 40 Savings 159,010 167,371 168,609 175,942 175,745 176,701 178,127 176,360 178,081 177,532 41 Federal 104,431 109,653 111,246 115,714 115,554 116,402 116,717 115,305 116,411 115,469 42 State 54,579 57,718 57,363 60,228 60,191 60,299 61,408 61,056 61,670 62,063 Life insurance companies5 43 Assets 1,299,756 1,376,660 1,387,463 Securities 44 Government 178,141 195,287 202,962 45 United States6 153,361 167,735 175,156 46 State and local 9,028 10,963 11,818 47 Foreign 15,752 16,589 15,988 48 Business 663,677 705,070 709,470 49 Bonds 538,063 570,245 588,251 50 Stocks 125,614 134,825 121,219 51 Mortgages 254,215 264,865 266,063 52 Real estate 39,908 44,188 44,544 53 Policy loans 57,439 63,144 60,641 54 Other assets 106,376 104,106 103,783 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

Financial Markets All 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll FFFiiissscccaaalll TTTyyypppeee ooofff aaaccccccooouuunnnttt ooorrr ooopppeeerrraaatttiiiooonnn yyyeeeaaarrr yyyeeeaaarrr yyyeeeaaarrr 1990 1991 111999888888 111999888999 111999999000 Aug. Sept. Oct. Nov. Dec. Jan. U.S. budget1 1 Receipts, total 908,166 990,701 1,031,463 78,486 102,874 78,711 72,819 102,266 101,802 ? On-budget 666,675 727,035 749,809 56,284 78,542 58,751 47,843 82,425 71,112 Off-budget 241,491 263,666 281,654 22,202 24,332 19,960 24,976 19,841 30,690 4 Outlays, total 1,063,318 1,144,020 1,251,850 131,206 82,026 109,995' 120,529' 109,578' 100,042 5 On-budget 860,627 933,109 1,026,785 89,717 80,613 91,083' 99,081' 95,046' 80,124 6 Off-budget 202,691 210,911 225,065 41,489 1,413 18,912 21,448 14,532 19,918 7 Surplus, or deficit (-), total -155,152 -153,319 -220,387 -52,719 20,848 -31,285' -47,711' -7,311' 1,760 8 On-budget -193,952 -206,074 -276,976 -33,432 -2,071 -32,332' -51,238' -12,62<y -9,012 9 Off budget 38,800 52,755 56,589 -19,287 22,919 1,048 3,528 5,309 10,772 Source of financing (total) 10 Borrowing from the public 166,139 141,806 264,453 47,329 -2,595 3322,,226655 4466,,777766 1199,,770000 3311,,776644 11 Operating cash (decrease, or increase (-)) . -7,962 3,425 818 2,433 17,832 4,720 12,533 -9,286 -30,627 12 Other 2 -3,025 8,088 -44,884 2,957 -421 -5,700' -11,598' -3,103' -2,897 MEMO 13 Treasury operating balance (level, end of period) 44,398 40,973 40,155 22,323 40,155 35,435 22,902 3322,,118888 6622,,881155 14 Federal Reserve Banks 13,023 13,452 7,638 4,453 7,638 7,607 5,495 8,960 27,810 15 Tax and loan accounts 31,375 27,521 32,517 17,869 32,517 27,828 17,406 23,228 35,006 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

A28 Domestic Financial Statistics • April 1991 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1 Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll SSSooouuurrrccceee ooorrr tttyyypppeee yyyeeeaaarrr yyyeeeaaarrr 1989 1990 1990 1991 111999888999 111999999000 HI H2 HI H2 Nov. Dec. Jan. RECEIPTS 1 All sources 990,701 1,031,462 527,574 470,329 548,977 507,513 72,819 102,266 101,802 2 Individual income taxes, net 445,690 466,884 233,572 218,706 243,087 230,745 27,156 46,471 50,882 3 Withheld 361,386 390,480 174,230 193,296 190,219 207,469 27,505 44,560 29,390 4 Presidential Election Campaign Fund 32 32 28 3 30 3 0 0 0 5 Nonwithheld 154,839 149,189 121,563 33,303 117,675 31,728 1,606 2,605 21,799 6 Refunds 70,567 72,817 62,251 7,898 6644,,883388 8,455 1,956 694 308 Corporation income taxes 7 Gross receipts 117,015 110,017 61,585 52,269 58,830 54,044 2,132 23,425 5,025 8 Refunds 13,723 16,510 7,259 6,842 8,326 7,603 837 902 1,197 9 Social insurance taxes and contributions, net 359,416 380,047 200,127 162,574 221100,,447766 178,468 33,723 2255,,448800 3399,,660044 10 Employment taxes and contributions2 332,859 353,891 184,569 152,407 119955,,226699 167,224 31,209 2244,,991188 3388,,447722 11 Self-employment taxes and contributions3 18,504 21,795 16,371 1,947 19,017 2,638 0 0 1,795 12 Unemployment insurance 22,011 21,635 13,279 7,909 12,929 8,9% 2,098 217 778 13 Other net receipts4 4,546 4,522 2,277 2,260 2,278 2,249 416 345 354 14 Excise taxes 34,386 35,345 16,814 16,799 18,153 17,535 2,953 3,005 2,931 15 Customs deposits 16,334 16,707 7,918 8,667 8,096 8,568 1,354 1,281 1,324 16 Estate and gift taxes 8,745 11,500 4,583 4,451 6,442 5,333 845 741 906 17 Miscellaneous receipts5 22,839 27,470 10,235 13,704 12,222 20,423 5,494 2,765 2,326 OUTLAYS 18 All types 1,144,020 1,251,850 565,425 587,448 640,982 651,614r 120,529' 109,578' 100,042 19 National defense 303,559 299,335 148,098 149,613 152,733 153,757 29,868 26,021 21,874 20 International affairs 9,574 13,760 6,567 5,971 6,770 8,943' 4,652' 488' 395 21 General science, space, and technology .... 12,838 14,420 6,238 7,091 6,974 8,081 1,231 1,486 1,013 22 Energy 3,702 2,470 2,221 1,449 1,216 979 269 190 71 23 Natural resources and environment 16,182 17,009 7,022 9,183 7,343 9,930 3,103 1,138 1,398 24 Agriculture 16,948 11,998 9,619 4,132 7,450 6,878 1,903 2,742 1,516 25 Commerce and housing credit 29,091 67,495 4,129 22,295 38,672 37,491' 4,276 4,597' -144 26 Transportation 27,608 29,495 12,953 14,982 13,754 16,218 2,494 2,919 2,658 27 Community and regional development 5,361 8,466 1,833 4,879 3,987 3,939 1,325 -37 663 28 Education, training, employment, and social services 36,694 37,479 18,083 18,663 19,537 18,988 3,120 3,863 4,045 29 Health 48,390 58,101 24,078 25,339 29,488 31,424 5,235 5,206 5,663 30 Social security and medicare 317,506 346,383 162,195 162,322 175,997 176,353 29,973 29,301 30,625 31 Income security 136,031 148,299 70,937 67,950 78,475 75,948 13,758 13,904 14,299 32 Veterans benefits and services 30,066 29,112 14,891 14,864 15,217 15,479 4,033 2,446 962 33 Administration of justice 9,422 10,076 4,801 4,963 4,983 5,397 1,050 860 978 34 General government 9,124 10,822 3,858 4,760 4,916 6,982 1,875 976 1,071 35 General-purpose fiscal assistance n.a. n.a. 0 n.a. n.a. n.a. n.a. n.a. n.a. 36 Net interest6 169,317 183,790 86,009 87,927 91,155 94,650 15,138 16,362 16,064 37 Undistributed offsetting receipts7 -37,212 -36,615 -18,131 -18,935 -17,688 -19,829 -2,775 -2,891 -3,109 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

Federal Finance A29 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 3,397.3r 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 o fthe 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 Q1 Q2 Q3 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 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 Marketable 1,724.7 1,821.3 1.945.4 2,195.8 1.995.3 2,028.0 2,092.8 4 Bills 389.5 414.0 430.6 527.4 453.1 453.5 482.5 5 Notes 1,037.9 1,083.6 1.151.5 1,265.2 1.169.4 1,192.7 1,218.1 6 Bonds 282.5 308.9 348.2 388.2 357.9 366.8 377.2 7 Nonmarketable1 704.2 841.8 986.4 1,166.2 1,034.2 1,093.5 1,118.2 8 State and local government series 139.3 151.5 163.3 160.8 163.5 164.3 161.3 9 Foreign issues 4.0 6.6 6.8 43.5 37.1 36.4 36.0 10 Government 4.0 6.6 6.8 43.5 37.1 36.4 36.0 11 Public .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 13 Government account series3 461.3 575.6 695.6 813.8 705.1 758.7 779.4 14 Non-interest-bearing debt 2.8 21.3 21.2 2.8 22.4 22.3 22.4 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 98.7 102.2 112.1 114.6 22 State and local Treasury s 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 international3 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

A30 Domestic Nonfinancial Statistics • April 1991 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Millions of dollars, daily averages 1990 1990 1991, week ending Item Oct. Nov. Dec. Dec. 5 Dec. 12 Dec. 19 Dec. 26 Jan. 2 Jan. 9 Jan. 16 Jan. 23 Jan. 30 IMMEDIATE TRANSACTIONS2 By type of security U.S. government securities 1 Bills 31,703 32,259 32,387 27,897 34,908r 38,353 27,373 31,087 39,907 36,908 37,132 28,449 Coupon securities 2 Maturing in less than 3.5 years 29,840 33,722 28,498 29,207 30,842 34,040 22,107 25,299 40,250 32,314 48,320 32,661 3 Maturing in 3.5 to 7.5 years... 25,896 25,249 24,702 30,839 33,550 28,773 12,353 17,613 33,281 27,219 29,319 25,534 4 Maturing in 7.5 to 15 years 11,386 15,451 11,161 13,845 15,248 13,104 7,169 5,081 12,498 8,466 12,060 10,583 5 Maturing in 15 years or more.. 13,365 15,364 13,055 14,837 18,638 15,853 6,898 7,568 17,105 13,455 17,415 13,780 Federal agency securities Debt 6 Maturing in less than 3.5 years 4,397 4,562 4,968 5,966 5,203 5,194 3,811 5,129 5,410 4,210 4,459 4,671 7 Maturing in 3.5 to 7.5 years... 534 626 509 672 719 583 312 201 544 486 427 392 8 Maturing in 7.5 years or more 836 605 614 460 1,064 653 379 344 2,261 1,292 583 505 Mortgage-backed 9 Pass-throughs 9,005 8,646 12,308 10,428 14,447 15,097 10,793 8,502 15,847 10,970 8,615 9,468 10 All others 1,247 1,440 1,340 1,304 2,263 1,262 1,020 502 1,128 1,172 1,042 1,106 By type of counterparty Piimary dealers and brokers 11 U.S. government securities.... 70,998 74,510 66,700 72,565 82,598' 81,552 43,555 48,160 91,380 71,471 92,219 67,754 Federal agency 12 Debt securities 2,007 1,900 1,842 2,163 2,336 2,012 1,169 1,537 2,780 2,123 1,537 1,702 13 Mortgage backed securities . 4,834 5,036 7,230 5,829 8,149 8,397 7,333 4,982 8,019 6,151 5,187 5,355 Customers 14 U.S. government securities 41,193 47,535 43,102 44,060 50,588 48,570 32,344 38,487 51,661 46,891 52,026 43,253 Federal agency 15 Debt securities 3,760 3,894 4,248 4,934 4,649 4,417 3,332 4,136 5,435 3,864 3,932 3,865 16 Mortgage-backed securities . 5,418 5,050 6,418 5,904 8,560 7,962 4,480 4,022 8,956 5,991 4,470 5,219 FUTURE AND FORWARD TRANSACTIONS By type of deliverable security U.S. government securities 17 Bills 3,694 5,402 4,833 7,540 8,577 4,009 1,852 2,228 7,624 5,259 10,793 3,089 Coupon securities 18 Maturing in less than 3.5 years 1,306 1,556 1,093 1,384 1,197 1,241 934 646 1,669 1,126 1,298 1,839 19 Maturing in 3.5 to 7.5 years... 523 797 810 1,093 1,114 928 399 510 829 883 849 750 20 Maturing in 7.5 to 15 years ... 873 1,295 1,037 1,111 1,249 1,177 745 864 1,100 871 795 532 21 Maturing in 15 years or more.. 8,957 10,185 7,861 9,472 10,699' 9,377 4,572 4,477 12,065 8,582 11,562 7,256 Federal agency securities Debt 22 Maturing in less than 3.5 years 81 47 113 46 86' 133 210 30 26 116 72 320 23 Maturing in 3.5 to 7.5 years... 53 57 36 38 14 85 26 6 4 21 150 4 24 Maturing in 7.5 years or more 96 36 39 41 62 32 38 11 190 44 26 15 Mortgage-backed 25 Pass-throughs 8,427 9,025 6,603 6,651 9,302 8,057 4,226 3,598 12,348 11,465 9,498 5,741 26 All others 721 1,151 780 1,276 917 791 542 434 1,369 1,034 1,268 974 OPTION TRANSACTIONS5 By type of underlying securities U.S. government securities 27 Bills 60 63 10 0 41' 0 0 0 58 14 38 160 Coupon securities 28 Maturing in less than 3.5 years 715 661 650 574 737r 754 453 735 1,631 1,112 920 715 29 Maturing in 3.5 to 7.5 years ... 223 240 270 187 616' 167 94 241 84 414 90 394 30 Maturing in 7.5 to 15 years 182 202 195 136 401r 201 100 62 192 163 215 231 31 Maturing in 15 years or more.. 2,152 2,299 1,648 1,195 2,028' 1,676 1,872 1,048 2,580 3,299 3,426 2,032 Federal agency securities Debt 32 Maturing in less than 3.5 years 6 5 1 0 1 2 0 0 0 0 0 101 33 Maturing in 3.5 to 7.5 years... 0 0 0 0 1 1 0 0 1 1 0 0 34 Maturing in 7.5 years or more 0 1 0 0 0 0 0 0 1 0 0 0 Mortgage-backed 35 Pass-throuehs 482 370 382 386 815 277 110 284 538 274 331 306 36 All others 1 0 0 0 0 0 0 0 0 0 8 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

Federal Finance A31 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 1990 1990, week ending 1991, week ending item Oct. Nov. Dec. Dec. 5 Dec. 12 Dec. 19 Dec. 26 Jan. 2 Jan. 9 Jan. 16 Jan. 23 Jan. 30 Positions2 NET IMMEDIATE3 By type of security U.S. government securities 1 Bills 3,258 11,077 14,443 11,048 14,720 16,256 12,751 17,283 10,781 11,211 12,237 10,004 Coupon securities 2 Maturing in less than 3.5 years -2,016 3,964 7,333 3,813 4,154 7,911 10,434 10,156 4,136 559 5,193 5,082 3 Maturing in 3.5 to 7.5 years -5,885 -6,343 -1,780 -2,727 -2,211 -2,160 -1,868 424 902 -768 -3,413 -1,857 4 Maturing in 7.5 to 15 years -6,987 -6,674 -7,711 -7,485 -8,021 -8,673 -7,187 -6,890 -6,831 -7,520 -7,441 -8,500 5 Maturing in 15 years or more -15,377 -10,609 -9,616 -9,725 -8,553 -9,987 -9,599 -10,498 -13,960 -14,961 -13,985 -13,324 Federal agency securities Debt 6 Maturing in less than 3.5 years 4,169 4,471 3,867 4,788 3,188 4,108 4,032 3,327 3,287 5,617 3,428 3,892 7 Maturing in 3.5 to 7.5 years 1,737 1,662 2,135 2,285 2,091 2,183 2,143 1,968 2,046 1,821 1,824 1,975 8 Maturing in 7.5 years or more 44,,111155 4,656 4,407 4,438 4,409 4,473 44,,446655 44,,220011 7,962 77,,556699 77,,557733 77,,336633 Mortgage-Backed 9 Pass-throughs 17,886 21,001 21,431 18,628 22,061 22,746 20,680 22,564 27,809 22,343 21,408 21,778 10 All others 11,548r 12,067r 12,881 12,56(r 13,518 13,235 12,693 12,076 11,022 10,961 9,988 10,360 Other money market instruments 11 Certificates of deposit 2,559 1,993 2,526 1,927 2,850 2,612 2,725 2,271 2,584 3,040 3,043 3,189 12 Commercial paper 6,423 5,995 7,132 5,217 8,517 6,695 7,816 6,762 6,200 6,162 5,759 6,531 13 Bankers' acceptances 1,214 1,407 863 1,157 879 902 693 732 1,072 960 999 1,214 FUTURE AND FORWARD5 By type of deliverable security U.S. government securities 14 Bills -17,120 -10,671 -19,084 -11,323 -17,066 -22,043 -21,009 -22,834 -23,447 -23,467 -19,460 -18,872 Coupon securities 15 Maturing in less than 3.5 years -685 -1,605 -1,347 -447 -750 -1,295 -2,231 -1,919 -1,363 -1,688 -2,518 705 16 Maturing in 3.5 to 7.5 years -1,541 -890 -3,308 -2,406 -2,484 -3,614 -3,851 -4,178 -3,791 -3,103 -2,571 -2,867 17 Maturing in 7.5 to 15 years -982 -1,726 -1,000 -1,419 -1,847 -587 -456 -734 -1,270 -676 -920 -937 18 Maturing in 15 years or more -2,256 -5,330 -5,865 -4,804 -6,398 -5,390 -6,516 -5,934 -5,838 -3,837 -5,764 -6,157 Federal agency securities Debt 19 Maturing in less than 3.5 years 166 69 189 145 282 208 149 132 123 189 225 434 20 Maturing in 3.5 to 7.5 years % 45 54 -4 66 45 93 51 -34 -37 110 10 21 Maturing in 7.5 years or more 118 -35 -117 -136 -238 -57 -76 -67 -76 -92 -124 -50 Mortgage-backed 22 Pass-throughs -8,186 -11,250 -9,587 -10,040 -9,847 -9,621 -8,133 -10,757 -15,511 -10,1% -8,911 -9,161 23 All others -812r -2,604r -2,150 -1,679r -2,732 -2,825 -1,880 -1,241 -1,100 -285 31 -677 Other money market instruments 24 Certificates of deposit 86,147 85,459 48,860 55,816 47,634 46,620 49,743 45,519 47,017 61,280 56,755 50,752 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 175,353 169,357 145,088 158,449 151,109 139,864 132,538 148,182 168,573 160,269 158,837 163,110 28 Term 226,083 224,231 211,555 215,257 217,777 218,034 216,107 183,698 214,825 230,712 226,668 222255,,554477 Repurchase agreements 29 Overnight and continuing 248,211 235,064 244,723 244,003 239,361 245,899 242,359 254,613 263,060 268,767 258,038 258,273 30 Term 118833,,774455 205,441 176,412 181,829 184,766 182,153 181,651 143,930 183,723 193,099 196,142 119955,,008866 Securities borrowed 31 Overnight and continuing 50,122 48,043 55,446 53,270 57,206 56,689 54,971 54,080 54,913 53,648 52,199 51,965 32 Term 1199,,118822 22,067 22,406 22,313 21,488 22,629 22,970 2222,,668855 23,950 2255,,440099 2244,,557766 2244,,009999 Securities lent 33 Overnight and continuing 5,362r 5,518r 6,176 6,434r 4,951 6,474 6,615 6,600 6,773 6,452 6,352 6,1% 34 Term 621 1,922 1,206 846 784 1,422 1,936 832 401 829 835 778 Collateralized loans 35 Overnight and continuing 4,421 4,434 6,097 4,790 5,715 6,318 7,449 5,736 5,457 5,930 6,062 6,291 36 Term 1,101 1,078 890 943 1,061 1,228 695 396 918 779 1,392 1,320 MEMO: Matched book7 Reverse repurchases 37 Overnight and continuing 110,533 105,308 94,705 100,604 100,762 91,572 85,221 97,987 109,437 103,973 104,915 109,985 38 Term 179,414 179,011 168,822 170,754 175,527 174,938 170,680 146,342 179,319 186,140 185,169 183,574 Repurchases 39 Overnight and continuing 141,338 126,078 123,020 129,834 127,199 118,842 115,356 126,933 145,740 142,360 138,640 142,516 40 Term 142,489 152,980 129,305 135,487 138,562 132,258 130,387 104,515 136,971 139,944 144,241 146,257 1. Data for positions and financing are obtained from reports submitted to the specify delayed delivery. All futures positions are included regardless of time to Federal Reserve Bank of New York by the U.S. government securities dealers on delivery. Forward contracts for U.S. government securities and for federal its published list of primary dealers. Weekly figures are close-of-business Wednes- agency debt securities are included when the time to delivery is more than five day data; monthly figures are averages of weekly data. Data for positions and business days. Forward contracts for mortgage-backed securities are included financing are averages 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • April 1991 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1990 AAggeennccyy 11998866 11998877 11998888 11998899 Aug. Sept. Oct. Nov. Dec. 1 Federal and federally sponsored agencies 307,361 341,386 381,498 411,805 421,554 421,308 431,519 430,842 0 2 Federal agencies 36,958 37,981 35,668 35,664 42,323 42,420 42,685 42,191 42,159 3 Defense Department1 33 13 8 7 7 7 7 7 7 4 Export-Import Bank2,3 14,211 11,978 11,033 10,985 11,150 11,346 11,346 11,346 11,376 5 Federal Housing Administration4 138 183 150 328 316 357 382 387 393 6 Government National Mortgage Association participation certificates5 2,165 1,615 0 0 0 0 0 0 0 7 Postal Service6 3,104 6,103 6,142 6,445 6,948 6,948 6,948 6,948 6,948 8 Tennessee Valley Authority 17,222 18,089 18,335 17,899 23,902 23,762 24,002 23,510 23,435 9 United States Railway Association6 85 0 0 0 0 0 0 0 0 10 Federally sponsored agencies7 270,553 303,405 345,830 375,407 379,231 378,388 388,834 388,651 0 11 Federal Home Loan Banks 88,758 115,727 135,836 136,108r 118,380 116,336 117,120 116,627 117,895 12 Federal Home Loan Mortgage Corporation 13,589 17,645 22,797 26,148 27,589 27,985 29,073 30,035 0 13 Federal National Mortgage Association 93,563 97,057 105,459 116,064 119,248 118,826 119,775 122,257 123,403 14 Farm Credit Banks8 62,478 55,275 53,127 54,864 54,015 54,382 56,788 53,469 53,590 15 Student Loan Marketing Association9 12,171 16,503 22,073 28,705 32,605 33,376 33,592 33,777 34,194 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 Corporation" 0 0 690 847 1,172 1,261 1,261 1,261 1,261 18 Resolution Funding Corporation12 0 0 0 4,522 18,052 18,052 23,055 23,055 23,055 MEMO 19 Federal Financing Bank debt13 157,510 152,417 142,850 134,873 166,017 173,318 180,538 177,620 179,083 Lending to federal and federally sponsored agencies 20 Export-Import Bank3 14,205 11,972 1111,,002277 10,979 1111,,114444 11,340 11,340 1111,,334400 1111,,337700 21 Postal Service6 2,854 5,853 5,892 6,195 6,698 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 4,850 4,850 23 Tennessee Valley Authority 15,797 16,709 16,955 16,519 14,522 14,382 14,622 14,130 14,055 24 United States Railway Association6 85 0 0 0 0 0 0 0 0 Other Lending14 25 Farmers Home Administration 65,374 59,674 58,496 53,311 52,211 52,049 52,324 52,324 52,324 26 Rural Electrification Administration 21,680 21,191 19,246 19,265 19,043 19,042 18,966 18,968 18,890 27 Other 32,545 32,078 26,324 23,724 57,519 64,927 71,708 69,310 70,896 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

Securities Market and Corporate Finance A33 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1990 1991 Type of issue or issuer, 1988 1990 or use July Aug. Sept. Oct. Nov. 1 All issues, new and refunding1 114,522 113,646 120,261 13,323 8,513 10,899 13,930 8,434 9,961 Type of issue 2 General obligation 30,312 35,774 39,076 4,124 2,624 3,400 3,763 3,169 3,024 3 Revenue 84,210 77,873 81,751 9,199 5,889 7,499 10,167 5,265 6,937 Type of issuer 4 State y 8,830 11,819 15,148 1,090 965 1,568 2,317 1,470 1,337 5 Special district and statutory authority 74,409 71,022 73,140 8,556 5,883 6,962 8,188 4,521 5,879 6 Municipalities, counties, and townships 31,193 30,805 32,341 3,977 1,666 2,369 3,425 2,530 2,745 7 Issues for new capital, total 79,665 84,062 103,157' 9,842 7,123 9,061 12,713 7,858r 9,058 Use of proceeds 8 Education 15,021 15,133 16,846 1,962 1,413 1,345 1,472 1,667 1,009 9 Transportation 6,825 6,870 11,635 1,340 683 540 920 1,060 727 10 Utilities and conservation 8,496 11,427 11,509 1,239 694 1,002 687 620 1,301 11 Social welfare 19,027 16,703 23,058 1,456 1,741 2,554 3,995 1,153 1,992 12 Industrial aid 5,624 5,036 5,876 415 509 700 674 445 540 13 Other purposes 24,672 28,894 35,252 3,430 2,083 2,919 4,965 2,913 4,392 1. Par amounts of long-term issues based on date of sale. SOURCES. Investment Dealer's Digest beginning April 1990. Securities Data/ 2. Includes school districts beginning 1986. Bond Buyer Municipal Data Base beginning 1986. Public Securities Association for earlier data. 1.46 NEW SECURITY ISSUES U.S. Corporations Millions of dollars 1990 TTyyppee ooff iissssuuee oorr iissssuueerr,, 11998888 11998899 11999900 oorr uussee May June July Aug. Sept. Oct. Nov. Dec. 1 All issues1 410,707' 376,410' 235,059 25,226r 29,157' 19,966' 13,769' 14,917' 20,361' 24,929' 21,089 2 Bonds2 352,906' 318,539' n.a. 22,875' 26,284' 17,719r 12,961' 14,491' 19,399"" 23,694' 19,300 Type of offering 3 Public, domestic 202,028' 181,059' 188,692 19,725' 23,073' 14,414' 11,765' 12,582' 17,534' 22,003' 18,500 5 4 . P S r o iv ld at e a b p r l o a a c d e ment, domestic 1 2 2 3 7 , , 1 7 7 0 8 0 1 2 1 2 4 , , 8 62 5 9 1 ' 2 n 2 . , a 9 . 2 9 3 n ,1 .a 5 . 0 3 n ,2 .a 1 . 1 3 n ,3 .a 0 . 5 1 n , . 1 a 9 . 6 1 n , . 9 a 0 . 9 1 n , . 8 a 6 . 5 l n ,7 .a 0 . 6 r n. 8 a 0 . 0 Industry group 6 Manufacturing 70,569' 76,345 35,187 2,580 3,813' 1,755' 854' 2,512' 3,371' 6,082' 2,683 7 Commercial and miscellaneous 62,089 49,317' 10,704 1,155' 3,135' 1,822' 234' 138' 548' 794' 998800 888 TTTrrraaannnssspppooorrrtttaaatttiiiooonnn 10,075 10,105 4,931 927 1,001 270 500 533 23C 453' 334499 999 PPPuuubbbllliiiccc uuutttiiillliiitttyyy 19,528 17,059 13,758 1,004 2,561 703 818' 928' 796' 2,168' 1,928 5,952 8,503 4,792 364' 411 137 68' 268 288' 654' 1,340 11 Real estate and financial 184,692 157,213' 142,253 16,845 15,364' 13,031' 10,488 10,112' 14,166' 13,542' 12,020 12 Stocks2 57,802 57,870 n.a. 2,351 2,873 2,247 808 426 962 1,235 1,789 Type 6,544 6,194 3,998 665 310 350 145 100 550 265 175 1144 CCoommmmoonn 35,911 26,030 19,443 1,686 2,563 1,897 663 327 412 970 1,614 1155 PPrriivvaattee ppllaacceemmeenntt33 15,346 25,647 23,439 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Industry group 16 Manufacturing 7,608 9,308 n.a. 86 265 348 125 0 60 154 46 17 Commercial and miscellaneous 8,449 7,446 5,026 706 748 507 251 172 194 42 110 111888 TTTrrraaannnssspppooorrrtttaaatttiiiooonnn 1,535 1,929 126 22 21 0 71 0 7 0 5 111999 PPPuuubbbllliiiccc uuutttiiillliiitttyyy 1,898 3,090 4,229 471 0 173 139 39 297 462 288 222000 CCCooommmmmmuuunnniiicccaaatttiiiooonnn 515 1,904 416 380 29 0 0 0 0 0 6 21 Real estate and financial 37,798 34,028 11,055 686 1,799 862 218 215 400 574 1,327 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

A34 Domestic Nonfinancial Statistics • April 1991 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Asset Position Millions of dollars 1990 IItteemm 11998899 11999900 May June July Aug. Sept. Oct. Nov/ Dec. INVESTMENT COMPANIES1 1 Sales of own shares2 306,445 345,780 27,431 28,301 29,444 29,227 23,387 27,511 25,583 34,553 2 Redemptions of own shares3 272,165 289,573 23,337 23,340 22,933 24,837 21,053 23,112 22,085 29,484 3 Net sales 34,280 56,207 4,094 4,961 6,511 4,390 2,334 4,399 3,498 5,069 4 Assets4 553,871 570,744 574,302 582,190 586,526 554,722 535,787 538,306 557,676 570,744 5 Cash position5 44,780 48,638 52,741 49,861 48,944 51,103 51,128 51,847 52,829 48,638 6 Other 509,091 522,106 521,560 532,329 537,582 503,619 484,659 486,459 504,847 522,106 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 11998888 11998899 11999900 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1 Corporate profits with inventory valuation and capital consumption adjustment 337.6 311.6 298.7 349.6 327.3 321.4 306.7 290.9 296.8 306.6 300.7 2 Profits before tax 316.7 307.7 307.4 331.1 335.1 314.6 291.4 289.8 296.9 299.3 318.5 3 Profits tax liability 136.2 135.1 135.0 142.1 148.3 140.8 127.8 123.5 129.9 133.1 139.1 4 Profits after tax 180.5 172.6 172.4 189.1 186.7 173.8 163.6 166.3 167.1 166.1 179.4 5 Dividends 110.0 123.5 133.9 115.3 119.1 122.1 125.0 127.7 130.3 133.0 135.1 6 Undistributed profits 70.5 49.1 38.6 73.8 67.6 51.7 38.6 38.6 36.8 33.2 44.3 7 Inventory valuation -27.0 -21.7 -13.6 -22.5 -43.0 -23.1 -6.1 -14.5 -11.4 -.5 -19.8 8 Capital consumption adjustment 47.8 25.5 4.9 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 • Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1989 1990 1991 IInndduussttrryy 11998899 11999900 11999911 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 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

Domestic Finance Companies A35 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities1 Billions of dollars, end of period 1989 1990 AAccccoouunntt 11998855 11998866 11998877 Q1 Q2 Q3 Q4 Q1 Q2 Q3 ASSETS Accounts receivable, gross2 111.9 134.7 141.1 139.1 143.9 146.3 140.8 137.9 138.6 140.9 157.5 173.4 207.4 243.3 250.9 246.8 256.0 262.9 274.8 275.4 28.0 32.6 39.5 45.1 47.1 48.7 48.9 52.1 55.4 57.7 297.4 340.6 388.1 427.5 441.9 441.8 445.8 452.8 468.8 474.0 Less: 39.2 41.5 45.3 51.0 52.2 52.9 52.0 51.9 54.3 55.1 4.9 5.8 6.8 7.4 7.5 7.7 7.7 7.9 8.2 8.6 253.3 293.3 336.0 369.2 382.2 381.3 386.1 393.0 406.3 410.3 8 All other 45.3 58.6 58.3 75.1 81.4 85.2 91.6 92.5 95.5 102.8 229988..66 335511..99 394.2 444.3 463.6 466.4 477.6 485.5 501.9 513.1 LIABILITIES 18.0 18.6 16.4 11.3 12.1 12.2 14.5 13.9 15.8 15.6 99.2 117.8 128.4 147.8 149.0 147.2 149.5 152.9 152.4 148.6 Debt 12.7 17.5 28.0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 94.4 117.5 137.1 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 56.9 59.8 60.3 63.8 70.5 72.8 82.0 n.a. n.a. 133.6 140.5 145.1 147.8 145.7 153.0 156.6 41.5 44.1 52.8 58.1 63.5 61.8 62.6 61.7 66.1 68.7 3322..88 3366..44 3311..55 36.6 38.8 39.8 39.4 40.7 41.8 41.6 18 Total liabilities and capital 229988..66 335511..99 339944..22 444.3 463.6 466.4 477.6 485.5 501.9 513.1 1. Components may not add to totals because of rounding. 2. Excludes pools of securitized assets. 1.52 DOMESTIC FINANCE COMPANIES Business Credit Outstanding and Net Change1 Millions of dollars, seasonally adjusted 1990 Type 1988 July Aug. Sept. Oct. Nov. Dec. 1 Total 234,578 258,504 291,694 277,616 283,043 285,654 287,921 287,819 291,694 Retail financing of installment sales 2 Automotive 36,957 39,139 37,771 38,931 38,610 38,470 39,150 38,600 37,771 3 Equipment 28,199 29,674 31,991 30,623 30,707 30,607 30,487 30,729 31,991 4 Pools of securitized assets n.a. 951 800 987 946 902 927 951 Wholesale 5 Automotive 32,357 33,074 33,247 33,158 34,429 37,082 35,258 33,111 33,247 6 Equipment 5,954 6,896 11,346 9,929 9,812 9,791 10,698 10,847 11,346 7 All other 9,312 9,918 9,309 9,722 9,707 9,597 9,477 9,447 9,309 8 Pools of securitized assets2 n.a. 0 415 0 650 863 679 649 415 Leasing 9 Automotive 24,875 27,074 39,317 30,210 30,942 30,453 31,303 31,601 39,317 10 Equipment 57,658 68,112 76,594 76,316 78,714 79,158 80,833 81,427 76,594 11 Pools of securitized assets2 n.a. 1,247 1,849 1,760 1,703 1,655 1,724 1,884 1,849 12 Loans on commercial accounts receivable and factored commercial accounts receivable 18,103 19,081 22,037 20,077 19,974 20,538 20,740 21,652 22,037 13 All other business credit 21,162 23,590 26,867 26,089 26,809 26,495 26,670 26,944 26,867 Net change (during period) 14 Total 22,434 22,580 30,973 3,830 5,427 2,611 2,267 -101 3,875 Retail financing of installment sales 15 Automotive 819 2,182 -1,368 -785 -321 -141 680 -549 -829 16 Equipment 1,386 1,475 2,319 132 84 -100 -120 243 1,262 17 Pools of securitized assets2 n.a. -26 253 158 187 -41 -44 25 24 Wholesale 18 Automotive 2,288 716 173 1,343 1,271 2,653 -1,823 -2,147 135 19 Equipment 377 940 2,231 434 -118 -21 907 149 499 20 All other 983 605 -608 -321 -16 -110 -120 -29 -138 21 Pools of securitized assets2 n.a. 0 415 0 650 213 -184 -30 -234 Leasing 22 Automotive 2,777 2,201 12,243 636 731 -488 850 298 7,716 23 Equipment 9,752 9,187 8,483 1,400 2,398 444 1,675 594 -4,833 24 Pools of securitized assets2 n.a. 526 602 213 -57 -48 69 160 -35 25 Loans on commercial accounts receivable and factored commercial accounts receivable -65 979 2,954 208 -103 564 202 912 384 26 All other business credit 4,119 3,796 3,278 412 721 -314 175 273 -76 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

A36 Domestic Financial Statistics • April 1991 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1990 1991 July Aug. Sept. Oct. Nov. Dec. Jan. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes 1 Purchase price (thousands of dollars) 150.0 159.6 153.2 163.5 161.5 156.6 146.1 151.5 156.3 148.3 2 Amount of loan (thousands of dollars) 110.5 117.0 112.4 120.9 118.3 114.8 105.1 111.2 115.4 112.3 3 Loan/price ratio (percent) 75.5 74.5 74.8 75.3 74.5 74.7 73.5 75.0 74.9 77.2 4 Maturity (years) 28.0 28.1 27.3 28.0 27.2 27.2 26.9 27.1 28.6 28.1 5 Fees and charges (percent of loan amount)2 2.19 2.06 1.93 1.93 2.07 1.78 1.80 1.68 1.85 1.75 6 Contract rate (percent per year) 8.81 9.76 9.68 9.75 9.75 9.60 9.68 9.61 9.45 9.36 Yield (percent per year) 7 OTS series' 9.18 10.11 10.01 10.08 10.11 9.90 9.98 9.90 9.76 9.65 8 HUD series4 10.30 10.21 10.08 9.94 10.12 10.18 10.11 9.86 9.66 9.53 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (HUD series)5 10.49 10.24 10.17 10.11 10.28 10.24 10.23 9.81 9.66 9.58 10 GNMA securities6 9.83 9.71 9.5 LR 9.48 9.59r 9.65 9.66 9.46 9.08 8.87 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 101,329 104,974 113,329 113,378 113,507 113,718 114,216 115,085 116,628 117,445 12 FHA/V A-insured 19,762 19,640 21,028 21,059 21,101 21,364 21,495 21,530 21,751 21,854 13 Conventional 81,567 85,335 92,302 92,319 92,406 92,354 92,721 93,555 94,877 95,591 Mortgage transactions (during period) 14 Purchases 23,110 22,518 23,959 2,304 2,134 2,123 2,077 2,078 2,410 1,781 Mortgage commitments7 15 Issued (during period) n.a. n.a. n.a. 2,215 2,302 2,073 1,849 2,426 2,104 1,889 16 To sell (during period)9 n.a. n.a. n.a. 874 761 644 92 0 0 0 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period f 17 Total 15,105 20,105 n.a. 20,127 20,564 20,508 20,790 n.a. n.a. n.a. 18 FHA/VA 620 590 n.a. 546 541 536 530 n.a. n.a. n.a. 19 Conventional 14,485 19,516 n.a. 19,581 20,023 19,972 20,260 n.a. n.a. n.a. Mortgage transactions (during period) 20 Purchases 44,077 78,588 n.a. 4,527 5,417 5,798 6,118 n.a. n.a. n.a. 21 Sales 39,780 73,446 68,383 4,248 4,808 5,707 5,734 5,280 5,519 4,507 Mortgage commitments10 22 Contracted (during period) 66,026 88,519 n.a. 5,851 5,646 6,643 10,972 n.a. 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 tne 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

Real Estate A37 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1989 Type of holder, and type of property 1987 1988 1989 Q3 Q4 Q1 Q2 1 AU holders 2,971,019 3,264,348 3,538,305 3,472,516 3,538,305 3,599,880 3,666,728 2 1- to 4-family 1,958,400 2,186,292 2,404,272 2,347,563 2,404,272 2,449,981 2,512,799 3 Multifamily 272,500 289,128 304,068 301,160 304,068 308,865 307,683 4 Commercial 651,323 702,113 744,626 737,484 744,626 756,323 761,698 5 Farm 88,797 86,816 85,339 86,309 85,339 84,710 84,548 6 7 Se C le o c m te m d e fi r n c a ia n l c b ia a l n i k n s s titutions 1, 5 6 9 5 2 7 , , 4 9 4 3 9 7 1, 6 8 6 2 9 6 , , 2 6 3 6 7 8 1, 7 9 6 1 3 8 , , 4 9 1 3 5 8 1, 7 9 4 1 2 4 , ,0 4 7 4 4 2 1, 7 9 6 1 3 8 , , 4 9 1 3 5 8 1, 7 9 8 2 3 4 , , 3 6 7 2 9 6 1, 8 9 1 2 1 5 , , 1 0 7 5 4 3 8 1- to 4-family 275,613 317,585 368,518 355,0% 368,518 376,306 395,082 9 Multifamily 32,756 33,158 37,996 37,201 37,9% 39.127 39.172 10 Commercial 269,648 302,989 340,204 333,606 340,204 351,135 359,747 11 Farm 14,432 15,505 16,697 16,539 16,697 16,811 17.173 12 Savings institutions3 860,467 924,606 910,254 932,373 910,254 891,921 860,540 13 1- to 4-family 602,408 671,722 669,220 683,148 669,220 658,405 641,864 14 Multifamily 106,359 110,775 106,014 108,447 106,014 103,841 97,314 15 Commercial 150,943 141,433 134,370 140,0% 134,370 129,056 120,795 16 Farm 757 676 650 682 650 619 567 17 Life insurance companies 205,021 232,825 245,269 239,259 245,269 249,326 253.339 18 1- to 4-family 12,676 15,299 13,812 13,275 13,812 14,158 14,560 19 Multifamily 21,644 23,583 27,174 26,351 27,174 28,161 29,247 20 Commercial 160,874 184,273 194,722 190,003 194,722 197,472 199,990 21 Farm 9,828 9.671 9,561 9,630 9,561 9,535 9,542 22 Finance companies4 29,716 37,846 45,476 43,157 45,476 45,808 47,104 23 Federal and related agencies 192,721 200,570 209,498 205,809 209,498 216,146 228,362 24 Government National Mortgage Association.. 444 26 23 24 23 22 21 25 1- to 4-family 25 26 23 24 23 22 21 26 Multifamily 419 0 0 0 0 0 0 27 Farmers Home Administration5 43,051 42,018 41,176 41,117 41,176 41,125 41,175 28 1- to 4-family 18,169 18,347 18,422 18,405 18,422 18,419 18,434 29 Multifamily 8,044 8,513 9,054 8,916 9,054 9,199 9,361 30 Commercial 6,603 5,343 4,443 4,366 4,443 4,510 4,545 31 Farm 10,235 9,815 9,257 9,430 9,257 8,997 8,835 32 Federal Housing and Veterans Administration 5,574 5,973 6,087 6,023 6,087 6,355 6,792 33 1- to 4-family 2,557 2.672 2,875 2,900 2,875 3,027 3,054 34 Multifamily 3,017 3,301 3,212 3,123 3,212 3,328 3,738 35 Federal National Mortgage Association 96,649 103,013 110,721 107,052 110,721 112,353 112,855 36 1- to 4-family 89,666 95,833 102,295 99,168 102,295 103,300 103,431 37 Multifamily 6,983 7,180 8,426 7,884 8,426 9,053 9,424 38 Federal Land Banks 34,131 32,115 29,640 30,943 29,640 29,325 29,595 39 1- to 4-family 2,008 1,890 1,210 1,821 1,210 1,197 1,741 40 Farm 32,123 30,225 28,430 29,122 28,430 28.128 27,854 41 Federal Home Loan Mortgage Corporation .. 12,872 17,425 21,851 20,650 21,851 19,823 19,979 42 1- to 4-family 11,430 15,077 18,248 17,659 18,248 16,772 17,316 43 Multifamily 1,442 2,348 3,603 2,992 3,603 3,051 2,663 44 Mortgage pools or trusts6 718,297 810,887 942,432 898,241 942,432 979,936 1,020,293 45 Government National Mortgage Association.. 317,555 340,527 368,367 360,097 368,367 376,%2 385,456 46 1- to 4-family 309,806 331,257 358,142 349,838 358,142 366,300 374,960 47 Multifamily 7,749 9,270 10,225 10,259 10,225 10,662 10,4% 48 Federal Home Loan Mortgage Corporation .. 212,634 226,406 272,870 257,938 272,870 281,736 295.340 49 1- to 4-family 205,977 219,988 266,060 251,232 266,060 274,084 287,232 5 5 0 1 Fe M de u r l a ti l f a N m a i t l i y o nal Mortgage Association 13 6 9 , , 6 9 5 6 7 0 17 6 8 , , 4 25 1 0 8 22 6 8 , ,2 8 3 10 2 20 6 8 , ,8 7 9 0 4 6 228 6 , , 2 8 3 1 2 0 246 7 , , 3 6 9 5 1 2 263 8, ,3 1 3 08 0 52 1- to 4-family 137,988 172,331 219,577 200,302 219,577 237,916 254,811 53 Multifamily 1,972 5,919 8,655 8,592 8,655 8,475 8,519 54 Farmers Home Administration5 245 104 80 82 80 76 72 55 1- to 4-family 121 26 21 22 21 20 19 56 Multifamily 0 0 0 0 0 0 0 57 Commercial 63 38 26 26 26 25 24 58 Farm 61 40 33 35 33 31 30 59 Individuals and others7 402,064 426,223 467,438 454,392 467,438 479,172 493,021 60 1- to 4-family 242,053 258,639 292,967 283,445 292,967 301,573 312,670 61 Multifamily 75,458 78,663 82,899 80,689 82,899 84,873 86,935 62 Commercial 63,192 68,037 70,861 69,387 70,861 72,136 72,868 63 Farm 21,361 20,884 20,711 20,871 20,711 20,589 20,548 1. Based on data from various institutional and governmental sources, with 5. Farmers Home Administration-guaranteed securities sold to the Federal some quarters estimated in part by the Federal Reserve. Multifamily debt refers Financing Bank were reallocated from FmHA mortgage pools to FmHA mortgage to loans on structures of five or more units. holdings in 1986:4, because of accounting changes by the Farmers Home 2. Includes loans held by nondeposit trust companies but not bank trust Administration. departments. 6. Outstanding principal balances of mortgage pools backing securities insured 3. Includes savings banks and savings and loan associations. Beginning 1987:1, or guaranteed by the agency indicated. Includes private pools which are not data reported by FSLIC-insured institutions include loans in process and other shown as a separate line item. contra assets (credit balance accounts that must be subtracted from the corre- 7. Other holders include mortgage companies, real estate investment trusts, sponding gross asset categories to yield net asset levels). state and local credit agencies, state and local retirement funds, noninsured 4. Assumed to be entirely 1- to 4-family loans. pension funds, credit unions, and other U.S. agencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Nonfinancial Statistics • April 1991 1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change, seasonally adjusted Millions of dollars, amounts outstanding, end of period 1990 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 11998899 11999900 Apr. May June July Aug. Sept. Oct. Nov/ Dec. Seasonally adjusted 1 Total 716,624 737,910 720,835 724,485 724,601 729,329 732,385 735,222 736,595 739,357 737,910 2 Automobile 290,770 285,269 288,936 288,931 287,168 286,791 285,283 285,261 284,402 284,483 285,269 3 Revolving 197,110 218,531 203,965 207,153 208,362 212,138 214,492 216,804 218,381 219,757 218,531 4 Mobile home 22,343 21,730 22,702 22,815 22,733 22,795 22,976 22,672 22,491 22,518 21,730 5 Other 206,401 212,380 205,232 205,585 206,338 207,605 209,635 210,484 211,320 212,599 212,380 Not seasonally adjusted 6 Total 727,561 749,852 715,801 720,045 722,953 727,196 734,511 737,260 737,252 740,346 749,852 By major holder 7 Commercial banks 343,865 351,198 337,576 339,328 335,998 339,124 342,987 344,941 344,875 346,128 351,198 8 Finance companies 140,832 135,641 138,174 138,384 138,642 138,7% 139,4% 140,890 141,329 139,195 135,641 1 9 0 C R r e e ta d i i l t e u rs n 2 i ons 4 9 2 0 , , 6 8 3 7 8 5 4 9 2 1 , , 1 2 1 0 1 3 8 37 9 , , 2 6 0 8 7 9 8 37 9 , , 3 9 4 1 7 3 9 37 0 , , 3 1 8 3 2 7 9 3 0 6 , ,8 6 0 3 4 1 9 37 1 , , 2 3 3 0 1 6 9 3 1 6 , , 3 6 1 8 1 2 9 36 1 , , 0 4 4 0 7 6 9 3 1 7 , , 1 4 7 7 4 0 9 4 1 2 , , 2 1 0 1 3 1 11 Savings institutions 57,228 49,594 53,606 53,301 52,902 52,503 52,399 51,358 50,787 50,310 49,594 1 1 3 2 P G o a o s l o s l i o n f e s c e o c m ur p it a i n z i e e d s assets2 .. 48 3 , , 1 9 8 3 8 5 7 4 5 , , 7 35 4 8 7 55 3 , , 6 9 2 2 1 8 5 4 7 , , 0 7 2 4 4 8 6 4 3 , , 1 7 9 0 2 0 64 4 , , 9 3 4 % 2 6 4 6 , , 7 3 2 7 2 0 6 4 7, , 3 7 5 2 5 3 6 4 8 , , 7 ( 1 W 8 7 4 1 , , 7 3 0 6 1 8 7 4 5 , , 7 3 4 5 7 8 By major type of credit1 14 Automobile 290,421 284,841 286,220 287,140 287,254 287,479 288,221 289,255 287,730 285,877 284,841 15 Commercial banks 126,613 133,687 126,483 127,056 126,988 126,986 128,079 128,937 128,133 127,039 133,687 1 1 6 7 F P i o n o a l n s c o e f c s o e m cu p r a it n iz ie e s d assets2 8 1 2 8 , , 7 1 2 9 1 1 7 24 4 , , 1 3 9 % 8 7 1 9 9 , , 2 4 9 0 5 6 7 20 8 , , 1 9 5 2 1 7 7 2 8 1 , , 2 0 7 4 3 3 7 21 7 , , 6 7 9 1 2 6 7 21 7 , , 5 2 6 0 2 5 7 2 8 1 , , 1 2 1 3 6 9 7 2 8 0 , , 0 7 3 8 3 6 7 2 5 3 , , 2 1 2 5 4 9 2 7 4 4 , , 1 3 9 % 8 18 Revolving 208,188 230,769 201,783 204,854 206,820 209,582 213,119 214,853 216,285 219,713 230,769 19 Commercial banks 130,956 133,687 124,039 125,433 122,116 124,569 125,%7 126,995 127,950 129,111 133,687 20 Retailers 37,967 37,535 32,721 32,857 32,884 32,325 32,735 32,212 31,601 32,993 37,535 2 2 1 2 P G o a o so ls l i o n f e s c e o c m ur p it a i n z i e e d s assets2 2 3 2 , , 9 9 3 7 5 7 4 4 3 , , 7 8 4 0 7 8 2 3 9 , , 9 4 2 0 8 3 3 4 0 , , 0 9 2 1 4 3 3 4 6 , , 1 0 9 7 2 6 3 4 6 , ,7 3 8 % 6 3 4 8 , , 7 1 2 9 2 4 3 4 9 , , 7 6 2 0 3 6 4 4 0 , , 7 7 1 9 8 8 4 4 1 , , 7 7 0 9 1 7 4 4 3 , , 7 8 4 0 7 8 23 Mobile home 22,283 21,671 22,484 22,610 22,644 22,873 23,033 22,815 22,720 22,646 21,671 24 Commercial banks 9,155 10,048 9,231 9,295 9,2% 9,443 9,541 9,3% 9,363 9,351 10,048 25 Finance companies 4,716 3,756 5,168 5,224 5,266 5,328 5,358 5,423 5,400 5,364 3,756 26 Other 206,669 212,571 205,314 205,441 206,235 207,252 210,138 210,337 210,517 212,110 212,571 27 Commercial banks 77,141 81,413 77,823 77,544 77,598 78,126 79,400 79,613 79,429 80,627 81,413 28 Finance companies 53,395 57,488 53,711 54,233 55,103 55,752 56,933 57,351 57,8% 58,607 57,488 29 Retailers 4,671 4,576 4,486 4,490 4,498 4,479 4,4% 4,470 4,446 4,477 4,576 30 Pools of securitized assets2 7,020 7,352 6,812 6,684 6,581 6,464 6,614 6,510 6,506 6,412 7,352 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

Consumer Installment Credit A39 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1 Percent unless noted otherwise 1990 IItteemm 11998888 11998899 11999900 June July Aug. Sept. Oct. Nov. Dec. INTEREST RATES Commercial banks2 1 48-month new car3 10.85 12.07 11.78 n.a. n.a. 11.89 n.a. n.a. 11.62 n.a. 2 24-month personal ^ 14.68 15.44 15.46 n.a. n.a. 15.46 n.a. n.a. 15.69 n.a. 3 120-month mobile home3 13.54 14.11 14.02 n.a. n.a. 14.09 n.a. n.a. 13.99 n.a. 4 Credit card 17.78 18.02 18.17 n.a. n.a. 18.18 n.a. n.a. 18.23 n.a. Auto finance companies 5 New car 12.60 12.62 12.54 12.58 12.68 12.62 12.34 12.57 12.74 12.86 6 Used car 15.11 16.18 15.99 16.00 15.% 15.98 16.03 16.12 16.07 16.04 OTHER TERMS4 Maturity (months) 7 New car 56.2 54.2 54.6 54.8 54.9 54.8 54.3 54.6 54.6 54.7 8 Used car 46.7 46.6 46.1 46.2 46.2 46.2 46.1 46.1 46.0 45.8 Loan-to-value ratio 9 New car 94 91 87 87 86 86 85 85 85 85 10 Used car 98 97 95 95 % % 95 95 95 94 Amount financed (dollars) 11 New car 11,663 12,001 12,071 12,108 12,125 11,939 11,837 11,917 11,986 12,140 12 Used car 7,824 7,954 8,289 8,2% 8,401 8,415 8,403 8,423 8,494 8,530 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

A40 Domestic Nonfinancial Statistics • April 1991 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1989 1990 Q1 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 It 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 50.9 82.9 78.9 51.7 36.8 52.3 28.5 26.7 39.6 37.7 64.1 39.5 39 Mortgages .1 .1 .4 .3 .0 .3 .0 .3 -.4 -.7 .8 -1.4 40 Bank loans n.e.c 2.6 4.0 -3.2 1.4 1.8 1.0 -.1 2.0 4.2 -2.2 -.7 1.7 41 Open market paper 32.0 24.2 27.9 54.8 26.9 50.1 10.1 11.0 36.3 9.4 -44.7 37.3 42 Loans from Federal Home Loan Banks 14.2 19.8 24.4 19.7 -11.0 58.9 -13.1 -41.0 -48.8 -21.8 -30.7 -30.3 By sector 43 201.3 285.1 300.2 247.6 205.5 356.6 154.1 123.9 187.3 198.5 172.5 214.3 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

Flow of Funds A41 1.57—Continued 1989 1990 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11998855 11998866 11998877 11998888 11998899 Q1 Q2 Q3 Q4 QL 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 833.7 836.9 694.9 750.4 684.1 761.2 646.1 701.6 627.6 740.6 665.1 689.8 65 Net borrowing by U.S. government 209.3 215.0 152.8 147.1 157.5 161.6 79.4 196.7 192.4 226.2 269.2 267.9 External corporate equity funds raised in United States 66 Total net share issues 17.2 86.8 10.9 -124.2 -63.7 -165.8 -43.0 -61.0 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

A42 Domestic Nonfinancial Statistics • April 1991 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 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11998855 11998866 11998877 11998888 11998899 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1 Total funds advanced in credit markets to domestic nonlinancial sectors 848.1 836.9 687.0 760.8 678.2 746.9 666.8 678.8 620.2 762.1 624.6 708.6 By public agencies and foreign 2 Total net advances 202.0 280.2 248.8 210.7 187.6 312.8 15.5 218.3 203.8 233.7 313.3 283.0 3 U.S. government securities 45.9 69.4 70.1 85.2 30.7 83.1 -103.3 115.7 27.1 16.9 93.5 97.3 4 Residential mortgages 94.6 136.3 139.1 86.3 137.9 126.0 119.7 127.7 178.3 182.1 210.6 181.7 5 FHLB advances to thrifts 14.2 19.8 24.4 19.7 -11.0 58.9 -13.1 -41.0 -48.8 -21.8 -30.7 -30.3 6 Other loans and securities 47.3 54.7 15.1 19.4 30.0 44.8 12.1 15.8 47.1 56.5 39.8 34.2 Total advanced, by sector 7 U.S. government 17.8 9.7 -7.9 -9.4 -2.4 -.2 -6.0 -9.3 5.7 33.6 42.7 30.9 8 Sponsored credit agencies 103.5 153.3 169.3 112.0 125.3 188.2 28.0 126.4 158.4 184.0 165.8 150.5 9 Monetary authorities 18.4 19.4 24.7 10.5 -7.3 8.1 -1.6 -31.2 -4.6 -6.7 39.7 23.7 10 Foreign 62.3 97.8 62.7 97.6 72.1 116.7 -4.9 132.4 44.2 22.8 65.0 77.9 Agency and foreign borrowing not in line 1 11 Sponsored credit agencies and mortgage pools 101.5 154.1 171.8 119.8 151.0 194.0 128.8 124.8 156.4 176.2 183.7 167.4 12 Foreign 1.2 9.7 4.5 6.3 10.9 3.2 -6.9 30.4 16.9 -3.5 41.1 26.3 Private domestic funds advanced 13 Total net advances 748.8 720.5 614.5 676.2 652.5 631.3 773.3 615.7 589.7 701.1 536.1 619.3 14 U.S. government securities 278.2 300.1 247.4 192.1 271.9 258.2 332.2 183.0 314.3 406.9 318.9 356.7 15 State and local obligations 135.4 22.7 49.3 49.8 30.4 39.7 28.7 34.1 19.1 13.0 21.9 25.9 16 Corporate and foreign bonds 40.6 89.7 66.9 91.3 66.1 36.8 91.1 65.6 70.6 56.8 71.4 35.5 17 Residential mortgages 91.8 115.9 120.2 161.3 96.5 122.6 113.0 105.1 45.5 77.2 10.5 26.2 18 Other mortgages and loans 216.9 212.0 155.2 201.4 176.6 232.9 195.2 186.9 91.5 125.4 82.7 144.7 19 LESS: Federal Home Loan Bank advances 14.2 19.8 24.4 19.7 -11.0 58.9 -13.1 -41.0 -48.8 -21.8 -30.7 -30.3 Private financial intermediation 20 Credit market funds advanced by private financial institutions 578.0 730.0 528.4 562.3 511.1 474.1 600.9 345.9 623.4 326.9 241.7 418.6 21 Commercial banking 188.4 198.1 135.4 156.3 177.3 180.4 160.9 183.7 184.3 187.9 125.8 106.3 22 Savings institutions 87.9 107.6 136.8 120.4 -90.9 16.5 -42.3 -135.8 -201.9 -56.4 -215.8 -158.9 23 Insurance and pension funds 150.1 160.1 179.7 198.7 177.9 182.1 188.1 136.1 205.1 138.0 201.9 176.8 24 Other finance 151.6 264.2 76.6 86.9 246.8 95.1 294.2 161.9 436.0 57.3 129.8 294.4 25 Sources of funds 578.0 730.0 528.4 562.3 511.1 474.1 600.9 345.9 623.4 326.9 241.7 418.6 26 Private domestic deposits and RPs 212.1 277.1 162.8 229.2 225.2 140.9 267.4 284.4 208.0 117.0 18.3 78.4 27 Credit market borrowing 99.7 131.0 128.4 127.8 54.5 162.6 25.3 -.9 30.9 22.3 -11.2 46.9 28 Other sources 266.1 321.8 237.1 205.3 231.4 170.6 308.2 62.3 384.6 187.6 234.6 293.3 29 Foreign funds 19.7 12.9 43.7 9.3 -9.9 -14.1 -35.4 30.4 -20.6 45.3 11.6 125.6 30 Treasury balances 10.3 1.7 -5.8 7.3 -3.4 -12.6 13.9 -19.9 5.0 11.9 -15.4 16.2 31 Insurance and pension reserves 131.7 119.9 135.4 177.6 140.5 162.3 123.2 82.6 193.9 120.3 179.5 142.0 32 Other, net 104.4 187.3 63.9 11.0 104.2 35.1 206.4 -30.8 206.3 10.0 58.9 9.5 Private domestic nonfinancial investors 33 Direct lending in credit markets 270.5 121.5 214.6 241.7 195.9 319.7 197.7 268.9 -2.8 396.5 283.3 247.6 34 U.S. government securities 157.8 27.0 86.0 129.0 134.3 199.8 136.2 196.8 4.3 281.2 185.7 244.2 35 State and local obligations 37.7 -19.9 61.8 53.5 28.4 56.7 5.1 39.0 12.8 .9 9.2 12.2 36 Corporate and foreign bonds 3.8 52.9 23.3 -9.4 .7 -16.5 9.4 -4.7 14.6 28.4 14.1 -19.1 37 Open market paper 51.6 9.9 15.8 36.4 5.4 47.3 17.8 21.4 -64.6 43.3 43.2 -29.8 38 Other 19.6 51.7 27.6 32.2 27.1 32.5 29.2 16.4 30.1 42.7 31.1 40.1 39 Deposits and currency 222.8 297.5 179.3 232.8 241.3 182.2 290.6 261.8 230.6 141.6 41.2 117.3 40 Currency 12.4 14.4 19.0 14.7 11.7 17.8 12.8 6.0 10.1 25.9 22.9 32.0 41 Checkable deposits 41.4 96.4 -.9 12.9 1.5 -33.0 -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 5.8 120.9 44 Large time deposits 7.4 -3.2 37.2 40.8 23.1 68.5 61.1 -23.8 -13.4 -22.2 -7.4 -78.2 45 Security RPs 17.7 20.2 21.6 32.9 14.9 35.4 29.8 13.7 -19.2 -34.8 14.6 -15.7 46 Deposits in foreign countries -1.7 5.9 -2.5 -11.2 4.4 23.5 10.4 -28.6 12.4 -1.3 .0 7.0 47 Total of credit market instruments, deposits, and currency 493.3 419.0 393.9 474.5 437.2 502.0 488.3 530.7 227.7 538.1 324.4 364.9 48 Public holdings as percent of total 23.8 33.1 36.0 27.5 27.2 41.7 2.3 30.8 32.0 30.8 47.1 38.5 49 Private financial intermediation (in percent) 77.2 101.3 86.0 83.2 78.3 75.1 77.7 56.2 105.7 46.6 45.1 67.6 50 Total foreign funds 82.0 110.7 106.4 106.9 62.2 102.6 -40.3 162.8 23.6 68.1 76.6 203.5 MEMO: Corporate equities not included above 51 Total net issues 17.2 86.8 10.9 -124.2 -63.7 -165.8 -43.0 -61.0 14.9 -4.8 50.5 -11.9 52 Mutual fund shares 84.4 159.0 73.9 1.1 41.3 1.0 34.0 57.9 72.4 53.1 76.5 51.7 53 Other equities -67.2 -72.2 -63.0 -125.3 -105.1 -166.8 -77.0 -118.9 -57.6 -57.9 -26.0 -63.7 54 Acquisitions by financial institutions 46.9 50.9 32.0 -2.9 17.2 -.2 -14.1 6.1 76.9 63.4 114.7 41.8 55 Other net purchases -29.7 35.9 -21.2 -121.4 -80.9 -165.6 -28.9 -67.1 -62.1 -68.2 -64.2 -53.7 NOTES BY LINE NUMBER. 31. Excludes net investment of these reserves in corporate equities. 1. Line 1 of table 1.57. 32. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 7-10. 33. Line 13 less line 20 plus line 27. 6. Includes farm and commercial mortgages. 34-38. Lines 14-18 less amounts acquired by private finance plus amounts 11. Credit market funds raised by federally sponsored credit agencies, and net borrowed by private finance. Line 38 includes mortgages. issues of federally related mortgage pool securities. 40. Mainly an offset to line 9. 13. Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33. 47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46. Also sum of lines 28 and 47 less lines 40 and 46. 48. Line 2Aine 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

Flow of Funds A43 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING Billions of dollars; period-end levels. 1989 1990 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11998855 11998866 11998877 11998888 Q1 Q2 Q3 Q4 Q1 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 1100,,330099..44 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 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 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 17 Commercial 478.1 551.4 648.7 696.4 716.2 725.9 734.9 742.6 754.1 759.4 763.9 13 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 17 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 71 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 77 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 3,4%. 1 73 Farm 173.4 156.6 145.5 137.6 136.7 139.5 139.2 139.2 138.2 140.7 141.8 74 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 236.7 238.3 244.6 253.9 254.0 252.2 257.7 261.5 226600..44 227711..77 227777..33 71 71.8 74.9 82.3 89.2 90.4 92.1 94.2 94.5 102.1 107.5 108.0 78 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 30 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 11,,337722..99 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 5? 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

A44 Domestic Nonfinancial Statistics • April 1991 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 Q1 Q2 Q3 Q4 Q1 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 7 Total held 1,474.0 1,779.4 2,006.6 2,199.7 2,256.0 22,,226633..55 22,,331177..44 22,,337799..33 22,,441199..99 22,,550033..11 22,,557744..22 3 U.S. government securities 435.4 509.8 570.9 651.5 665.0 642.7 668.6 682.1 679.2 706.1 727.4 4 Residential mortgages 518.2 678.5 814.1 900.4 927.2 954.4 991.1 1,038.4 1,077.7 1,127.6 1,178.2 5 FHLB advances to thrifts 88.8 108.6 133.1 152.8 163.8 161.9 151.1 141.8 132.9 126.3 117.9 6 Other loans and securities 431.6 482.4 488.6 495.1 500.0 504.5 506.6 517.0 530.2 543.1 550.7 7 Total held, by type of lender 1,474.0 1,779.4 2,006.6 2,199.7 2,256.0 2,263.5 2,317.4 2,379.3 2,419.9 2,503.1 2,574.2 8 U.S. government 248.6 255.3 240.0 217.6 212.9 211.5 207.8 207.1 216.2 228.1 235.3 9 Sponsored credit agencies and mortgage pools ... 659.8 835.9 1,001.0 1,113.0 1,151.1 1,157.8 1,193.5 1,238.2 1,274.0 1,315.0 1,356.8 10 Monetary authority 186.0 205.5 230.1 240.6 235.4 238.4 227.6 233.3 224.4 237.8 240.8 11 Foreign 379.5 482.8 535.5 628.5 656.6 655.7 688.5 700.6 705.2 722.1 741.4 Agency and foreign debt not in line 1 12 Sponsored credit agencies and mortgage pools ... 632.7 810.3 978.6 1,098.4 1,140.8 1,169.5 1,203.6 11,,224499..33 11,,228866..11 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 99,,223333..00 99,,338855..33 15 U.S. government securities 1,791.6 2,110.1 2,363.0 2,559.7 2,626.5 2,687.6 2,736.1 2,831.6 2,962.8 3,018.6 3,110.6 16 State and local obligations 655.5 679.1 728.4 790.8 798.6 804.9 816.4 821.2 822.4 826.7 836.3 17 Corporate and foreign bonds 517.3 606.6 674.3 765.6 776.5 797.7 814.5 831.6 847.5 863.3 872.6 18 Residential mortgages 1,185.1 1,288.5 1,399.0 1,560.2 1,594.9 1,631.5 1,657.7 1,670.4 1,680.1 1,691.8 1,697.7 19 Other mortgages and loans 2,139.3 2,339.8 2,528.7 2,724.9 2,773.7 2,837.0 2,875.3 2,923.8 2,922.4 2,958.9 2,986.0 20 LESS: Federal Home Loan Bank advances 88.8 108.6 133.1 152.8 163.8 161.9 151.1 141.8 132.9 126.3 117.9 Private financial intermediation /I 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 7,913.6 ??" 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 23 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 76 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 37, Insurance and pension reserves 1,289.3 1,398.5 1,527.8 1,692.5 1,737.3 1,770.0 1,785.7 1,826.0 1,860.8 1,907.8 1,941.7 33 Other, net 462.1 655.0 740.3 750.5 781.5 827.2 834.0 852.3 888.6 898.2 912.4 Private domestic nonfinancial investors 34 Credit market claims 1,491.0 1,617.0 1,854.1 2,106.0 2,187.1 2,236.9 2,301.5 2,347.1 2,425.3 22,,449955..11 22,,555544..00 35 U.S. government securities 803.3 848.7 936.7 1,072.2 1,100.0 1,122.9 1,171.3 1,206.4 1,264.1 1,296.9 1,357.4 36 Tax-exempt obligations 231.5 212.6 274.4 340.9 348.8 353.8 363.1 369.3 362.8 368.1 371.3 37 Corporate and foreign bonds 37.1 90.5 114.0 100.4 126.4 128.2 131.1 130.5 154.1 157.6 156.9 38 Open market paper 135.2 145.1 178.5 218.0 225.8 236.7 239.3 228.7 229.6 247.7 237.6 39 Other 283.8 320.1 350.4 374.4 386.0 395.3 396.8 412.1 414.7 424.8 430.8 40 Deposits and currency 3,116.8 3,410.1 3,583.9 3,832.3 3,864.2 3,926.2 3,979.0 4,073.6 4,095.8 4,092.6 4,108.9 41 171.9 186.3 205.4 220.1 220.7 226.4 224.4 231.8 234.4 242.7 247.2 47 Checkable deposits 420.3 516.6 515.4 527.2 494.2 495.0 486.1 528.7 501.3 510.7 500.2 43 Small time and savings accounts 1,831.9 1,948.3 2,017.1 2,156.2 2,168.9 2,189.3 2,224.4 2,256.7 2,289.8 2,288.1 2,292.3 44 Money market fund shares 225.6 268.9 297.8 318.0 342.7 362.1 391.0 403.3 436.7 426.3 456.7 45 Large time deposits 339.9 336.7 373.9 414.7 430.8 435.7 440.0 437.8 431.5 417.9 409.0 46 Security RPs 108.3 128.5 150.1 182.9 191.1 196.9 200.9 197.9 188.3 190.5 186.9 47 Deposits in foreign countries 18.8 24.8 24.3 13.1 15.8 20.7 12.1 17.6 13.9 16.4 16.6 48 Total of credit market instruments, deposits, and currency 4,607.8 5,027.2 5,438.0 5,938.2 6,051.2 6,163.0 6,280.5 6,420.7 6,521.1 6,587.7 6,663.0 49 Public holdings as percent of total 20.9 22.6 23.4 23.5 23.7 23.4 23.5 23.6 23.6 24.0 24.3 50 Private financial intermediation (in percent) 85.3 87.0 86.8 86.4 86.5 86.4 85.8 85.7 85.1 84.6 84.3 51 Total foreign funds 385.1 501.3 597.8 700.1 715.9 705.1 743.5 762.3 768.6 788.4 836.7 MEMO: Corporate equities not included above 52 Total market value 2,823.9 3,360.6 3,325.0 3,619.8 3,730.5 4,069.7 4,395.4 4,378.9 4,170.2 4,336.2 3,769.7 53 Mutual fund shares 240.2 413.5 460.1 478.3 486.3 514.8 543.9 555.1 550.3 587.9 547.3 54 Other equities 2,583.7 2,947.1 2,864.9 3,141.6 3,244.2 3,555.0 3,851.5 3,823.8 3,620.0 3,748.3 3,222.4 55 Holdings by financial institutions 800.3 974.6 1,039.5 1,176.1 1,237.2 1,343.0 1,478.5 1,492.3 1,440.4 1,558.3 1,334.2 56 Other holdings 2,023.6 2,385.9 2,285.5 2,443.7 2,493.3 2,726.8 2,917.0 2,886.6 2,729.8 2,778.0 2,435.4 NOTES BY LINE NUMBER. 32. Excludes net investment of these reserves in corporate equities. 1. Line 1 of table 1.59. 33. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 8-11. 34. Line 14 less line 21 plus line 28. 6. Includes farm and commercial mortgages. 35-39. Lines 15-19 less amounts acquired by private finance plus amounts 12. Credit market debt of federally sponsored agencies, and net issues of borrowed by private finance. Line 39 includes mortgages. federally related mortgage pool securities. 41. Mainly an offset to line 10. 14. Line 1 less line 2 plus line 12 and 13. Also line 21 less line 28 plus line 34. 48. Lines 34 plus 40, or line 14 less line 29 plus 41 and 47. Also sum of lines 29 and 48 less lines 41 and 47. 49. Line 2/line 1 and 13. 19. Includes farm and commercial mortgages. 50. Line 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, Digitized for FRASER Washington, D.C. 20551. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A45 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1990 1991 1988 1989 May June July Aug. Sept. Oct. Dec.' Jan. 1 Industrial production (1987 = 100)' .... 105.4 108.1 109.2' 109.4 110.1 110.4 110.5 110.6 lw.y 108.2 107.0 106.5 3 4 2 5 6 7 M P M r a F o a In r t d i e k n t C E u e r e a i c o q r t a l m t , u n l g s s i s t , r e p o u o d ( t m t m 1 o u i a 9 a t p e l e a t 8 n i e r l ( n 7 t 1 g ( g ( 9 1 ( 1 = o s 1 8 9 9 o 9 7 8 8 1 d 8 7 7 0 = s 7 0 = = ( ) = 1 1 9 0 1 1 8 0 1 0 0 7 0 ) 0 0 0 ) ) = ) 100) 1 1 1 1 1 1 0 0 0 0 0 0 5 5 4 4 7 5 . . . . . . 6 3 4 0 6 6 1 1 1 1 1 1 0 0 0 0 1 0 8 9 7 6 2 6 . . . . . . 6 1 4 7 3 8 1 1 1 1 1 1 1 0 0 1 0 1 0 7 7 7 0 5 . . . . . . 7 7 1 3 4 8 r r ' 1 1 1 1 1 1 1 1 1 0 0 0 1 6 0 7 7 8 . . . . . . 2 2 5 4 7 3 1 1 1 1 1 1 1 0 1 0 0 1 8 1 0 8 7 6 . . . . . . 8 7 9 3 8 8 1 1 1 1 1 1 1 1 0 0 1 0 1 7 8 7 0 9 . . . . . . 7 2 4 5 9 6 1 1 1 1 1 1 1 1 1 0 0 0 1 7 0 7 9 7 . . . . . . 9 2 9 9 7 8 1 1 1 1 1 1 1 1 0 0 0 1 2 1 7 9 8 7 . . . . . . 6 4 4 4 7 8 1 l 1 1 1 1 l 0 1 0 1 0 l 7 7 8 2 8 . . . . ( C . . 6 0 3 3 K r ' ' 1 1 1 1 1 1 1 0 0 1 0 0 0 6 9 4 6 6 . . . . . . 1 5 2 9 6 3 1 1 1 1 1 1 0 0 0 1 0 0 9 5 8 3 5 4 . . . . . . 1 8 3 3 9 9 1 1 1 1 1 1 0 0 0 1 0 0 5 8 7 3 4 5 . . . . . . 7 9 9 0 4 0 Industry groupings 8 Manufacturing (1987 = 100) 105.8 108.9 109.9 110.3 110.8 111.1 111.2 110.7'" 108.9 107.3 106.9 Capacity utilization (percent)2 83.9 83.9 82.3r 82.9' 83. r 83.T 82.9'' 82.8' 82.2' 80.7 79.3 78.8 9 Manufacturing 166.7 172.9 153.2' 165.0 164.0 153.0 149.0 146.0 147.0 146.0 130.0 132.0 10 Construction contracts (1982 = 100)3... 11 Nonagricultural employment, total4 — 1 1 2 0 8 3 . . 0 7 1 1 3 0 1 5 . . 6 3 1 10 3 2 3 . . 7 8 1 10 3 3 4 . . 5 1 1 1 3 0 4 3 . . 4 4 1 10 3 3 4 . . 1 3 1 10 3 2 4 . . 8 1 1 1 3 0 4 2 . . 1 4 1 10 3 1 3 . . 8 9 1 10 3 0 3 . . 7 6 1 1 3 0 3 0 . . 4 3 1 9 3 9 3 . . 4 1 1 1 2 3 Go M od a s n - u p f r a o c d t u u c ri i n n g g , , t t o o t t a a l l 9 9 8 3 . . 6 7 9 9 9 4 . . 6 6 9 9 6 1 . . 8 5 9 9 7 2 . . 4 1 9 9 7 2 . . 3 0 9 9 7 2 . . 2 0 9 9 6 1 . . 9 7 9 9 6 1 . . 6 2 9 9 6 0 . . 3 9 9 8 5 9 . . 2 6 9 8 5 9 . . 0 4 9 8 4 9 . . 6 0 14 Manufacturing, production- worker 138.2 142.7 146.8 147.0 147.4 147.3 147.3 147.4 147.4 147.4 147.3 147.2 15 Service-producing 253.2 272.7 289.0 287.5 288.7 290.1 290.8 292.2 292.1 293.3 294.9 293.6 16 Personal income, total 244.6 258.9 272.2 271.2 272.8 274.4 274.5 276.4 274.8 274.8 277.1 275.7 17 Wages and salary disbursements 196.5 203.1 205.0 205.8 206.8 206.9 206.7 207.0 206.0 202.9 205.5 202.5 18 Manufacturing . 252.2 270.1 286.1 284.4 285.8 286.9 287.6 288.7 288.6' 289.9 291.4 289.9 19 Disposable personal income 228.0 240.7r 249.8' 246.1 248.9 250.1 250.2 252.4 252.7 252.7 249.1 246.8 20 Retail sales4 Prices7 21 Consumer (1982-84 = 100) 118.3 124.0 130.7 129.2 129.9 130.4 131.6 132.7 133.5 133.8 133.8 134.6 22 Producer finished goods (1982 = 100) 108.0 113.6 119.2 117.7 117.8 118.2 119.3 120.4' 122.3 122.9 121.9 121.9 1. A msyor 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

A46 Domestic Nonfinancial Statistics • April 1991 2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted. Exceptions noted. 1990 1991 CCaatteeggoorryy 11998888 11998899 11999900 June July Aug. Sept. Oct. Nov/ Dec. Jan. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 186,837 188,601 190,216 190,122 190,275 190,411 190,568 190,717 190,854 190,999 191,116 2 Labor force (including Armed Forces)1 123,893 126,077 126,954 126,942 126,848 126,855 127,137 127,067 126,880 127,307 126,777 3 Civilian labor force 121,669 123,869 124,787 124,797 124,709 124,705 124,970 124,875 124,723 125,174 124,638 4 Nonagricultural industries2 111,800 114,142 114,728 114,958 114,774 114,538 114,689 114,558 114,201 114,321 113,759 5 Agriculture ' 3,169 3,199 3,186 3,279 3,108 3,152 3,194 3,175 3,185 3,253 3,163 6 Number 6,701 6,528 6,874 6,560 6,827 7,015 7,087 7,142 7,337 7,600 7,715 7 Rate (percent of civilian labor force) 5.5 5.3 5.5 5.3 5.5 5.6 5.7 5.7 5.9 6.1 6.2 8 Not in labor force 62,944 62,524 63,262 63,180 63,427 63,556 63,431 63,650 63,974 63,692 64,339 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 105,584 108,573 110,330 110,829 110,740 110,613 110,612 110,432 110,165 110,017r 109,785 10 Manufacturing 19,403 19,611 19,064 19,148 19,131 19,084 19,019 18,951 18,744 18,699'' 18,630 11 Mining 721 722 735 744 745 735 736 733 738 740f 735 12 Contract construction 5,125 5,302 5,205 5,270 5,229 5,194 5,176 5,093 5,029 4,987r 4,832 13 Transportation and public utilities 5,548 5,703 5,838 5,846 5,841 5,846 5,870 5,870 5,866 5,881r 5,886 14 Trade 25,139 25,807 26,151 26,205 26,225 26,222 26,214 26,147 26,082 26,01 V 26,082 15 Finance 6,676 6,814 6,833 6,844 6,842 6,852 6,851 6,843 6,833 6,831 6,823 16 Service 25,6001 26,889 28,209 28,225 28,287 28,387 28,440 28,475 28,548 28,556'' 28,539 17 Government 17,372 17,726 18,299 18,547 18,440 18,293 18,306 18,320 18,325 18,312r 18,258 1. Persons 16 years of age and over. Monthly figures, which are based on 3. Data include all full- and part-time employees who worked during, or sample data, relate to the calendar week that contains the 12th day; annual data received pay for, the pay period that includes the 12th day of the month, and are averages of monthly figures. By definition, seasonality does not exist in exclude proprietors, self-employed persons, domestic servants, unpaid family population figures. Based on data from Employment and Earnings (U.S. Depart- workers, and members of the Armed Forces. Data are adjusted to the March 1984 ment of Labor). benchmark and only seasonally adjusted data are available at this time. Based on 2. Includes self-employed, unpaid family, and domestic service workers. data from Employment and Earnings (U.S. Department of Labor). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A47 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1990' SSeerriieess Qi 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 108.3 109.4 110.5 108.4 130.3 131.1 131.9 132.8 83.1 83.5 83.7 81.6 2 Manufacturing 109.2 110.2 111.1 109.0 132.1 133.0 134.0 135.0 82.7 82.8 82.9 80.7 3 Primary processing 106.4 106.3 107.6 104.6 124.1 124.8 125.5 126.1 85.7 85.2 85.8 82.9 4 Advanced processing 110.5 112.1 112.8 111.0 135.8 136.9 138.0 139.1 81.4 81.9 81.7 79.8 5 110.4 112.4 113.6 109.9 136.1 137.1 138.0 139.0 81.1 82.0 82.3 79.1 6 Lumber and products 105.1 102.3 101.5 96.2 123.0 123.5 124.0 124.6 85.5 82.8 81.8 77.2 7 Primary metals 106.1 107.4 112.2 106.8 127.2 127.4 127.7 127.9 83.4 84.2 87.9 83.5 8 Iron and steel 107.1 107.5 114.3 108.8 132.0 132.2 132.5 132.7 81.1 81.3 86.3 82.0 9 Nonferrous 104.6 107.1 109.2 104.1 120.4 120.6 120.9 121.1 86.9 88.8 90.3 85.9 10 Nonelectrical machinery 124.4 126.7 128.5 126.1 151.5 153.1 154.7 156.3 82.1 82.8 83.1 80.6 11 Electrical machinery 111.1 112.2 112.4 110.0 137.3 138.7 140.0 141.4 80.9 80.9 80.3 77.8 12 Motor vehicles and parts 91.5 102.6 103.7 89.1 132.2 132.4 132.7 132.9 69.2 77.5 78.2 67.0 13 Aerospace and miscellaneous transportation equipment .. 111.6 113.6 114.5 112.8 133.4 134.3 135.2 136.1 8833..66 8844..66 8844..77 8822..99 14 107.7 107.5 108.1 107.8 126.9 127.9 128.9 129.9 84.8 84.0 83.8 83.0 15 Textile mill products 101.1 102.4 101.3 98.3 115.9 116.3 116.6 117.0 87.2 88.1 86.9 84.0 16 Paper and products 103.9 104.5 107.2 105.4 113.9 114.5 115.1 115.7 91.2 91.3 93.2 91.2 17 Chemicals and products 109.9 109.9 110.8 110.3 133.4 134.6 135.9 137.1 82.4 81.6 81.5 80.4 18 111.7 116.3 117.2 126.1 128.4 130.6 88.6 90.6 89.7 19 Petroleum products 109.9 106.0 110.0 106.9 121.1 121.2 121.3 121.4 90.7 87.4 90.7 88.1 ?0 101.3 102.5 103.4 102.3 115.6 115.0 114.5 114.0 87.6 89.1 90.3 89.8 71 Utilities 105.7 107.8 110.5 107.9 126.1 126.6 127.1 127.6 83.8 85.2 86.9 84.6 22 Electric 108.4 111.0 112.9 110.9 121.2 121.9 122.6 123.2 89.4 91.1 92.1 90.0 Previous cycle2 Latest cycle3 1990' 1991 High Low High Low Jan. June July Aug. Sept. Oct. Nov. Dec. Jan." Capacity utilization rate (percent) 23 Total industry 89.2 72.6 87.3 71.8 82.7 83.8 83.8 83.7 83.6 83.0 81.5 80.4 79.9 24 Manufacturing 88.9 70.8 87.3 70.0 82.0 83.1 83.1 82.9 82.8 82.2 80.7 79.3 78.8 25 Primary processing 92.2 68.9 89.7 66.8 85.7 85.6 86.1 86.1 85.1 84.3 83.0 81.4 80.3 76 Advanced processing 87.5 72.0 86.3 71.4 80.5 82.0 81.8 81.6 81.8 81.3 79.7 78.5 78.2 77 Durable 88.8 68.5 86.9 65.0 79.9 82.5 82.3 82.3 82.2 81.2 79.0 77.1 76.6 78 Lumber and products 90.1 62.2 87.6 60.9 86.3 82.5 83.6 81.0 80.7 78.9 76.1 76.5 75.4 79 Primary metals 100.6 66.2 102.4 46.8 82.6 85.9 86.4 89.8 87.4 85.0 85.3 80.4 76.6 30 105.8 66.6 110.4 38.3 79.3 83.4 83.5 89.3 86.0 83.2 84.8 77.9 73.3 31 92.9 61.3 90.5 62.2 87.8 89.7 90.9 90.5 89.6 87.7 85.9 84.2 81.7 3? Nonelectrical machinery 96.4 74.5 92.1 64.9 81.9 83.0 83.2 83.2 82.8 82.2 80.7 79.0 78.1 33 Electrical machinery 87.8 63.8 89.4 71.1 80.5 81.1 80.4 80.4 80.1 78.6 78.1 76.7 76.7 34 Motor vehicles and parts 93.4 51.1 93.0 44.5 58.1 81.5 77.4 76.1 81.0 78.1 64.5 58.4 61.3 35 Aerospace and miscellaneous transportation equipment.. 77.0 66.6 81.1 66.9 83.4 84.5 8855..44 8844..44 8844..33 8844..00 8822..66 8822..11 8811..22 36 87.9 71.8 87.0 76.9 84.9 83.9 84.1 83.8 83.6 83.6 82.9 82.4 81.9 37 Textile mill products 92.0 60.4 91.7 73.8 86.9 89.0 88.3 86.1 86.3 86.6 83.4 82.2 81.7 38 Paper and products 96.9 69.0 94.2 82.0 91.3 90.9 93.8 92.5 93.3 92.5 90.3 90.7 90.2 39 Chemicals and products 87.9 69.9 85.1 70.1 82.6 81.7 81.5 81.8 81.4 81.0 80.6 79.7 78.9 102 0 50 6 90 9 63.4 88.5 90.0 90.5 89.7 88.9 90.0 90.2 41 Petroleum products 96.7 81.1 89.5 68.2 89.7 87.8 91.1 90.8 90.1 89.5 88.6 86.3 86.2 4? 94.4 88.4 96.6 80.6 87.8 89.0 90.7 89.4 90.9 89.9 89.7 89.9 89.9 43 Utilities 95.6 82.5 88.3 76.2 84.8 86.6 86.4 87.6 86.7 85.6 83.7 84.4 83.7 44 Electric 99.0 82.7 88.3 78.7 89.5 92.6 91.6 92.7 91.9 91.2 89.0 89.7 89.1 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

A48 Domestic Nonfinancial Statistics • April 1991 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data are seasonally adjusted 1987 1990 1991 pro- 1990 por- aavvgg.. tion Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.' Nov.' Dec.' Jan.P Index (1987 = 100) MAJOR MARKET 1 Total index 100.0 109.2 107.5 108.5 108.9 108.8 109.4 110.1 110.4 110.5 110.6 109.9 108.2 107.0 106.5 2 Products 60.8 110.1 108.4 109.4 110.1 109.8 110.5 110.9 110.9 110.9 111.4 111.0 109.2 108.3 107.9 3 Final products 46.0 110.8 108.5 109.7 110.7 110.4 111.2 111.7 111.7 111.9 112.6 112.3 110.1 109.1 108.9 4 Consumer goods 26.0 107.3 106.0 107.0 107.5 107.2 107.4 107.8 107.5 107.8 108.7 108.6 106.5 105.8 105.7 5 Durable consumer goods 5.6 106.2 99.4 106.2 110.8 107.3 109.3 112.1 108.3 107.4 110.4 106.9 99.4 96.1 97.1 6 Automotive products 2.5 102.3 85.2 99.3 109.3 102.4 107.0 112.2 106.7 104.6 111.8 107.1 93.6 86.8 90.4 7 Autos and trucks 1.5 97.4 66.3 92.7 107.7 95.8 105.6 112.9 104.8 101.5 113.0 107.5 84.2 74.6 79.6 8 Autos, consumer .9 92.2 62.1 86.9 100.5 87.7 96.8 103.8 98.0 97.2 111.5 104.6 80.7 77.2 83.2 9 Trucks, consumer .6 106.1 73.3 102.3 120.0 109.3 120.4 128.3 116.1 108.8 115.4 112.2 90.2 70.2 73.7 10 Auto parts and allied goods... 1.0 109.6 113.6 109.4 111.6 112.2 108.9 111.2 109.5 109.3 110.0 106.4 107.8 105.1 106.6 11 Other 3.1 109.4 110.6 111.6 112.0 111.2 111.1 112.0 109.5 109.6 109.3 106.8 103.9 103.4 102.4 12 Appliances, A/C, and TV .8 102.0 108.4 107.8 108.1 104.4 103.6 107.5 100.2 101.9 101.0 94.6 90.8 89.9 90.1 N Carpeting and furniture .9 104.9 103.7 104.7 105.9 107.5 107.6 107.8 106.0 104.9 106.0 103.8 99.2 101.1 98.7 14 Miscellaneous home goods ... 1.4 116.3 116.2 118.2 118.0 117.3 117.5 117.2 116.9 116.8 116.1 115.5 114.2 112.5 111.7 15 Nondurable consumer goods 20.4 107.6 107.8 107.2 106.6 107.1 106.9 106.6 107.3 107.9 108.2 109.1 108.4 108.5 108.1 16 Foods and tobacco 9.1 105.9 105.5 106.2 105.8 105.6 105.2 104.4 105.1 105.7 105.3 106.7 107.9 107.7 107.2 17 Clothing 2.6 95.8 100.6 99.6 97.0 96.0 96.4 95.7 95.6 94.6 95.3 94.2 91.7 92.4 91.5 18 Chemical products 3.5 113.3 112.7 112.0 111.0 113.5 113.0 112.8 112.4 114.3 115.1 115.9 114.5 113.3 113.5 19 Paper products 2.5 119.7 116.2 117.6 116.4 118.1 118.6 118.3 120.3 119.3 121.9 123.4 121.9 123.4 123.1 20 Energy 2.7 105.7 107.9 101.5 103.1 104.1 104.1 105.3 106.7 109.0 108.0 108.8 105.4 106.0 105.6 71 Fuels .7 102.9 105.1 106.6 101.8 101.6 98.2 102.6 104.6 106.0 105.6 104.0 101.1 98.3 99.2 22 Residential utilities 2.0 106.8 109.0 99.6 103.6 105.0 106.3 106.3 107.5 110.0 108.9 110.6 107.0 108.9 108.0 23 Equipment, total 20.0 115.4 111.8 113.3 114.9 114.7 116.2 116.8 117.2 117.2 117.8 117.0 114.9 113.3 113.0 24 Business equipment 13.9 123.0 118.0 120.1 122.2 121.6 123.5 124.4 125.0 125.4 126.4 125.4 122.7 120.7 120.5 25 Information processing and related .. 5.6 127.2 124.0 124.7 126.0 126.4 126.6' 126.3' 128.0' 128.5 129.5 130.1 128.7 126.9 125.6 26 OfBce and computing 1.9 149.4 142.7 144.3 147.2 149.3 148.9 150.6 152.7 152.2 153.6 155.3 149.3 144.8 142.7 27 Industrial 4.0 115.4 113.5 113.4 113.9 114.2 115.8r 116.0' 117.2' 117.9 117.4 115.4 115.2 113.5 114.0 78 Transit 2.5 129.6 111.4 122.7 130.6 126.2 132.5 137.4 135.5 135.4 140.5 137.5 125.3 121.4 123.1 79 Autos and trucks 1.2 96.8 69.6 91.7 104.5 95.2 105.7 112.2' 103.1' 101.5 111.0 106.5 83.9 75.3 79.8 30 Other 1.9 118.3 118.7 117.4 117.8 117.6 119.4' 119.9' 119.2' 119.8 118.5 117.0 117.2 117.1 115.9 31 Defense and space equipment 5.4 97.2 97.5 97.6 97.5 97.3 97.6 97.6 97.8 97.7 97.3 97.3 96.1 95.6 95.1 32 Oil and gas well drilling .6 109.0 98.3 100.1 106.0 114.3 118.6 119.5 116.2 106.9 107.4 107.1 109.7 107.3 106.4 33 Manufactured homes .2 90.8 91.6 94.3 92.9 89.7 91.3 92.8 90.0 93.4 91.8 89.0 87.3 83.4 83.0 34 Intermediate products, total 14.7 107.7 108.0 108.4 108.2 108.0 108.3 108.3 108.4 107.9 107.4 107.0 106.3 105.9 105.0 35 Construction supplies 6.0 105.2 107.9 108.2 107.3 106.4 105.5 106.0 106.7 105.3 103.8 103.1 101.5 100.6 98.8 36 Business supplies 8.7 109.4 108.0 108.5 108.9 109.1 110.2 109.8 109.5 109.7 109.9 109.7 109.5 109.5 109.3 37 Materials, total 39.2 107.7 106.2 107.1 107.1 107.3 107.7 108.8 109.6 109.7 109.4 108.3 106.6 104.9 104.4 38 Durable goods materials 19.4 111.8 109.4 110.8 110.9 110.9 112.5 113.8 114.0 114.9 114.1 112.5 110.2 107.2 106.4 39 Durable consumer parts 4.2 103.9 96.5 102.8 104.5 103.2 108.5 108.5 108.1 110.4 109.0 106.0 98.5 90.1 90.8 40 Equipment parts 7.3 118.1 116.5 117.6 117.6 117.4 118.1 119.1 119.2 119.4 119.8 118.6 117.4 117.0 116.2 41 Other 7.9 110.2 109.7 108.7 108.1 108.9 109.6 111.8 112.4 113.1 111.6 110.4 109.7 107.2 105.6 4? Basic metal materials 2.8 111.9 108.5 109.9 107.5 110.2 109.2 113.6 115.5 116.3 115.8 112.0 112.8 109.1 106.0 43 Nondurable goods materials 9.0 106.1 105.4 105.8 105.2 106.1 105.2 106.1 107.8 106.8 106.9 106.5 105.7 105.0 104.3 44 Textile materials 1.2 96.8 94.6 96.2 94.9 95.6 97.4 99.4 100.2 97.8 98.1 97.9 95.2 91.7 92.8 45 Pulp and paper materials 1.9 106.4 105.0 105.3 103.0 106.0 104.5 104.8 109.0 106.9 109.4 108.6 107.2 107.8 108.0 46 Chemical materials 3.8 106.8 105.8 107.3 107.5 107.4 105.4 107.3 108.5 108.0 106.6 105.6 106.0 105.8 104.6 47 Other 2.1 109.6 110.9 108.8 108.7 109.8 109.8 108.8 109.9 109.3 110.1 110.8 109.5 108.4 106.6 48 Energy materials 10.9 101.9 101.2 101.7 102.0 101.8 101.1 102.1 103.3 103.0 103.0 102.3 101.1 100.8 100.9 49 Primary energy 7.2 101.1 101.1 102.1 101.2 100.3 100.1 101.2 103.3 102.1 101.0 100.7 100.1 99.8 100.6 50 Converted fuel materials 3.7 103.6 101.4 100.9 103.4 104.6 102.9 103.9 103.4 104.9 107.0 105.3 103.0 102.8 101.4 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.3 109.5 108.6 108.9 109.0 109.2 109.5 110.0 110.6 110.7 110.6 110.0 108.9 107.9 107.3 52 Total excluding motor vehicles and parts... 95.3 109.8 109.0 109.2 109.2 109.5 109.7 110.2 110.8 110.9 110.7 110.2 109.3 108.4 107.8 53 Total excluding office and computing machines 97.5 108.2 106.6 107.6 108.0 107.8 108.4 109.1 109.3 109.4 109.5 108.8 107.2 106.0 105.6 54 Consumer goods excluding autos and trucks 24.5 107.9 108.4 107.8 107.5 107.9 107.6 107.5 107.6 108.2 108.4 108.7 107.8 107.7 107.3 55 Consumer goods excluding energy 23.3 107.5 105.8 107.6 108.0 107.5 107.8' 108.1' 107.6' 107.7 108.7 108.6 106.6 105.8 105.7 56 Business equipment excluding autos and trucks 12.7 125.6 122.8 122.9 124.0 124.2 125.3 125.6 127.2 127.8 128.0 127.2 126.5 125.2 124.5 57 Business equipment excluding office and computing equipment 12.0 118.7 114.0 116.2 118.2 117.2 119.4 120.2 120.5 121.1 122.0 120.6 118.4 116.8 116.9 58 Materials excluding energy 28.4 110.0 108.1 109.2 109.1 109.4 110.2 111.4 112.1 112.3 111.8 110.6 108.8 106.5 105.7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A49 2.13—Continued 11998877 1990 1991 SIC pprroo-- 1990 Groups code ppoorr-- avg. ttiioonn Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.' Nov.' Dec.' Jan." Index (1987 = 100) MAJOR INDUSTRY 1 Total index. 100.0 109.2 107.5 108.5 108.9 108.8 109.4 110.1 110.4 110.5 110.6 109.9 108.2 107.0 106.5 2 Manufacturing 84.4 109.9 108.1 109.6 109.8 109.5 110.3 110.8 111.1 111.1 111.2 110.7 108.9 107.3 106.9 3 Primary processing .. 26.7 106.2 106.2 106.9 106.0 105.9 106.1 107.0 107.9 108.0 106.9 106.2 104.7 102.9 101.6 4 Advanced processing 57.7 111.6 109.0 110.9 111.7 111.3 112.4 112.6 112.5 112.5 113.2 112.8 110.8 109.4 109.3 Durable 47.3 111.6 108.6 110.7 111.9 111.1 112.6 113.4 113.4 113.5 113.8 112.5 109.8 107.3 106.9 Lumber and products ... 24 2.0 101.7 106.0 104.3 105.0 103.3 101.7 102.0 103.6 100.5 100.3 98.2 94.9 95.4 94.1 Furniture and fixtures ... 25 1.4 105.9 105.1 104.8 105.9 107.6 108.0 108.7 108.0 106.7 106.9 104.4 102.4 102.1 101.4 Clay, glass, and stone products 32 2.5 105.7 110.0 108.0 107.7 105.1 106.4 106.1 106.0 106.6 104.5 104.4 103.8 102.0 100.2 Primary metals 33 3.3 108.2 105.0 107.9 105.4 106.4 106.2 109.5 110.3 114.6 111.6 108.6 109.0 102.9 98.1 Iron and steel 331,2 1.9 109.6 104.6 110.6 106.1 106.7 105.5 110.3 110.6 118.3 113.9 110.3 112.5 103.5 97.4 Raw steel .1 109.6 109.9 109.0 105.9 104.9 107.6 111.8 113.9 118.5 111.6 112.8 109.5 100.6 97.6 Nonferrous 333-6,9 1.4 106.3 105.6 104.0 104.3 105.9 107.1 108.3 109.8 109.4 108.4 106.2 104.1 102.0 99.1 Fabricated metal products 5.4 105.8 105.1 105.6 105.5 105.0 107.1 106.7 107.7 107.9 106.8 106.4 104.3 101.6 100.8 Nonelectrical machinery. 8.6 126.4 123.7 124.2 125.2 125.7 126.9 127.5 128.3 128.8 128.5 128.1 126.2 123.9 123.0 Office and computing machines 357 2.5 149.4 142.7 144.3 147.3 149.3 149.0 150.6 152.7 152.2 153.6 155.3 149.3 144.7 142.7 Electrical machinery 36 8.6 111.4 110.1 111.0 112.3 111.3 112.4 112.8 112.2 112.5 112.5 110.8 110.4 108.8 109.1 Transportation equipment 37 9.8 105.4 94.7 103.5 107.9 105.1 109.0 111.0 109.3 107.9 111.1 109.2 99.8 95.7 97.0 Motor vehicles and parts 371 4.7 96.8 76.8 94.1 103.5 95.8 104.0 108.0 102.7 101.0 107.5 103.8 85.8 77.7 81.6 Autos and light trucks 2.3 96.6 65.7 91.8 106.7 94.6 104.3 111.6 103.8 100.9 112.8 107.1 83.7 74.9 80.1 Aerospace and miscellaneous transportation equipment.. 372-6,9 5.1 113.1 111.0 111.9 111.9 113.4 113.5 113.8 115.2 114.1 114.2 114.0 112.4 111.9 111.0 Instruments 38 3.3 116.9 116.0 116.2 115.7 115.8 116.5 115.0 116.9 117.5 118.4 118.1 118.3 118.3 117.5 Miscellaneous manufacturers 1.2 120.0 117.0 118.1 118.6 118.6 119.1 119.6 120.4 121.8 121.3 121.5 122.1 120.3 120.4 23 Nondurable 37.2 107.8 107.5 108.3 107.2 107.5 107.4 107.6 108.1 108.1 108.0 108.4 107.7 107.4 106.9 24 Foods 8.8 107.7 106.8 107.4 107.1 107.0 106.8 106.1 107.1 107.7 107.6 108.8 109.7 109.3 109.1 25 Tobacco products ... 1.0 98.5 101.3 102.3 100.0 98.8 97.2 95.6 98.5 96.3 96.4 97.8 98.6 100.0 99.5 26 Textile mill products 1.8 100.9 100.6 103.0 99.8 100.9 102.7 103.6 102.9 100.4 100.7 101.2 97.5 96.2 95.7 27 Apparel products 2.4 98.9 102.4 102.1 99.8 98.7 99.2 99.3 99.2 98.8 98.4 97.2 95.5 95.3 93.8 28 Paper and products .. 3.6 105.2 103.8 105.0 102.8 105.3 104.0 104.2 107.8 106.5 107.5 106.8 104.5 105.0 104.7 29 Printing and publishing .. 6.4 112.0 110.7 112.1 111.4 112.0 112.8 112.0 111.4 110.9 111.6 112.9 112.8 113.3 113.3 30 Chemicals and products . 8.6 110.3 109.9 110.5 109.5 110.3 109.2 110.3 110.4 111.1 110.9 110.7 110.5 109.7 108.9 31 Petroleum products ... 1.3 108.1 108.6 112.0 109.1 106.8 104.6 106.5 110.5 110.2 109.3 108.6 107.6 104.7 104.6 32 Rubber and plastic products 3.0 110.1 110.7 109.1 109.8 109.0 110.9 112.8 110.9 112.0 110.3 110.6 108.2 106.7 106.3 33 Leather and products . .3 100.0 104.3 102.9 103.3 102.6 103.5 102.0 102.5 99.6 100.3 95.3 89.9 92.3 90.3 34 Mining 7.9 102.4 101.7 101.0 101.1 102.9 102.2 102.2 104.0 102.4 103.9 102.6 102.2 102.3 102.2 35 Metal 10 .3 153.0 144.8 143.4 141.4 152.7 148.7 156.7 164.8 155.7 163.6 146.8 153.5 159.9 154.6 36 Coal 11,12 1.2 113.2 114.1 111.9 112.9 114.2 110.0 113.5 118.5 110.2 116.8 114.7 112.9 110.6 112.0 37 Oil and gas extraction 13 5.7 95.3 94.4 94.1 94.6 95.7 96.0 94.6 95.5 95.8 95.8 95.8 95.7 95.4 95.7 38 Stone and earth minerals . 14 .7 119.5 121.2 120.0 116.5 120.2 119.9 121.1 121.8 120.1 121.7 118.0 114.0 118.7 115.6 39 Utilities... 7.6 107.9 106.8 104.0 106.2 106.7 107.1 109.7 109.7 111.4 110.3 109.2 106.8 107.9 107.1 40 Electric. 491,3PT 6.0 110.8 108.3 107.1 109.7 109.7 110.3 113.1 112.1 113.6 112.9 112.1 109.7 110.8 110.1 41 Gas .... 492,3PT 1.6 97.1 101.2 92.3 93.3 95.5 95.2 97.4 100.7 103.3 100.9 98.1 96.1 97.0 95.9 SPECIAL AGGREGATES 42 Manufacturing excluding motor vehicles and parts 79.8 110.7 109.9 110.5 110.2 110.3 110.7 111.0' 111.6' 111.7 111.4 111.1 110.2 109.1 108.4 43 Manufacturing excluding office and computing machines 82.0 108.7 107.1 108.6 108.7 108.3 109.2' 109.6' 109.8' 109.9 110.0 109.4 107.7 106.2 105.8 Gross value (billions of 1982 dollars, annual rates) MAJOR MARKET 44 Products, total 1734.8 1,910.6 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 1,939.6 1,882.8 1,850.2 1,852.1 45 Final 1350.9 1,496.7 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 1,523.7 1,470.8 1,439.5 1,442.5 46 Consumer goods . 833.4 882.2 864.3 888.6 893.4 883.9 885.9 893.8 886.0 885.9 895.2 892.7 865.2 850.9 852.4 47 Equipment 517.5 614.4 583.6 599.8 614.1 610.0 620.1 629.6 622.7 630.4 633.9 631.0 605.6 588.6 590.2 48 Intermediate 384.0 414.0 415.7 415.0 415.1 412.3 416.2 413.6 414.9 413.1 412.5 415.9 412.0 410.7 409.6 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

A50 Domestic Nonfinancial Statistics • April 1991 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1990 Mar. Apr. May June July Aug. Sept. Oct.' Nov.' Dec. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,456 1,339 1,096 1,232 1,108 1,065 1,108 1,082 1,050 992 920 906 844 2 1-family 994 932 792 912 813 802 796 780 762 737 708 671 645 i 2-or-more-family 462 407 304 320 295 263 312 302 288 255 212 235 199 4 Started 1,488 1,376 1,193 1,298' 1,217' 1,208' 1,187' 1,155' 1,131 1,106 1,026 1,130 975 5 1-family 1,081 1,003 895 988' 901' 897 89C 876' 835' 858' 839 769 749 6 2-or-more-family 407 373 298 310R 316' 311' 297' 279' 296' 248' 187 361 226 7 Under construction, end of period1 . 919 850 721 887 876 857 849 833 815 792 766 760 751 8 1-family 570 535 455 567 559 546 540 529 517 505 496 488 483 9 2-or-more-family 350 315 266 320 317 311 309 304 298 287 270 272 268 10 Completed 1,530 1,423 1,307 1,378 1,295 1,363 1,295 1,300 1,314 1,333 1,269 1,242 1,150 11 1-family 1,085 1,026 965 1,037 942 1,008 946 981 954 970 931 918 872 12 2-or-more-family 445 396 342 341 353 355 349 319 360 363 338 324 278 13 Mobile homes shipped 218 198 188 192R W 19C 19C 187' 193' 184' 186 181 167 Merchant builder activity in 1-family units 14 Number sold 675 650 537 558 533 536 550 541 527 505' 475 496 463 15 Number for sale, end of period1 367 362 319 363 363 360 354 351 345 338' 334 327 319 Price (thousands of dollars)2 Median 16 Units sold 113.3 120.4 122.9 119.4 130.0 125.0 125.0 118.7 118.4 113.0' 120.0 120.0 133.0 Average 17 Units sold 139.0 148.3 150.0 144.6 153.4 150.6 150.4 149.8 144.7 142.1 152.7 145.7 163.5 EXISTING UNITS (1-family) 18 Number sold 3,594 3,439 3,300 3,400 3,330 3,300 3,330 3,330 3,500 3,170 3,050 3,150 3,220 Price of units sold (thousands of dollars) 1199 Median 89.2 93.0 95.2 96.3 95.6 95.6 97.5 98.3 97.1 94.4 92.9 91.8 91.9 20 Average 112.5 118.0 118.3 119.5 117.8 118.7 121.1 122.0 120.5 116.7 115.9 115.5 114.0 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 422,076 432,068 434,937 457,272 444,737 443,805 441,088 437,010 436,338 423,941 423,320 417,097 415,110 22 Private 327,102 333,514 325,095 347,366 338,780 333,992 329,556 331,269 323,518 317,516 311,397 303,241 299,954 23 Residential 198,101 196,551 187,423 206,868 200,234 196,055 189,462 187,083 184,409 179,713 176,824 171,464 167,541 24 Nonresidential, total 129,001 136,963 137,672 140,498 138,546 137,937 140,094 114444,,118866 113399,,110099 113377,,880033 113344,,557733 113311,,777777 113322,,441133 Buildings 25 Industrial 14,931 18,506 20,582 21,086 21,039 20,847 20,405 23,609 20,239 19,862 19,616 19,548 20,906 26 Commercial 58,104 59,389 54,673 57,210 55,765 54,698 56,581 56,951 55,347 53,648 51,996 49,529 50,253 27 Other 17,278 17,848 18,826 17,646 18,227 18,379 19,272 19,792 19,801 20,267 19,634 19,382 18,378 28 Public utilities and other 38,688 41,220 43,591 44,556 43,515 44,013 43,836 43,834 43,722 44,026 43,327 43,318 42,876 29 Public 94,971 98,551 109,841 109,906 105,957 109,813 111,532 105,741 112,820 106,425 111,923 113,856 115,156 30 Military 3,579 3,520 3,789 5,099 5,057 5,459 5,868 3,308 2,888 2,543 2,401 2,821 2,292 31 Highway 30,140 29,502 32,044 32,374 29,714 30,658 30,311 28,775 31,865 31,322 33,398 35,324 36,271 32 Conservation and development... 4,726 4,969 4,718 4,996 4,979 5,504 3,958 4,460 4,776 3,482 4,944 5,056 5,308 33 Other 56,526 60,560 69,290 67,437 66,207 68,192 71,395 69,198 73,291 69,078 71,180 70,655 71,285 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 tne 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

Selected Measures A51 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data, except as noted Change from 12 Change from 3 months earlier Change from 1 month earlier months earlier (at annual rate) IIInnndddeeexxx llleeevvveeelll IIIttteeemmm 199C 199C 1991 JJJaaannn... 11999900 11999911 111999999111 JJaann.. JJaann.. Mar. June Sept. Dec. Sept. Oct. Nov. Dec. Jan. CONSUMER PRICES2 (1982-84=100) 1 All items 5.2 5.7 7.5 4.1 8.2 4.9 .8 .6 .3 .3 ..44 113344..66 ? 6.7 4.1 10.4 2.5 4.6 3.9 .3 .4 .4 .1 .6 135.8 3 Energy items 9.7 9.7 12.0 1.2 44.2 18.0 5.3 4.2 .5 -.4 -2.4 107.1 4 All items less food and energy 4.4 5.6 6.5 4.6 6.0 3.8 .4 .3 .3 .4 ..88 139.4 Commodities 2.6 4.0 5.7 2.0 3.3 2.3 .3 .2 .2 .2 11..00 125.9 6 Services 5.3 6.3 6.9 5.5 7.2 4.8 .4 .3 .4 .4 .7 147.1 PRODUCER PRICES (1982=100) 7 Finished goods 5.9 3.7 6.4 1.0 11.3 4.4 1.3 11..22 ..44 --..66 -.1 112211..99 8 Consumer foods 6.2 .6 8.8 -1.6 2.3 1.3 -.5 .6 .2 -.5 -.3 124.6 9 Consumer energy 19.6 12.7 16.9 -4.6 118.7 17.7 11.3 9.1 .2 -4.7 -2.5 81.9 10 Other consumer goods 4.2 4.0 3.9 3.8 3.5 3.1 .5 .1 .7 .0 ..88 132.1 11 Capital equipment 3.5 3.5 4.4 2.7 3.6 3.3 .3 .2 .2 .3 ..33 125.4 1? Intermediate materials3 2.7 2.9 1.4 .4 13.4 3.8 1.7 1.5 .3 -.8 -.4 116.7 13 Excluding energy .3 2.0 1.0 .7 4.0 2.0 .5 .3 .2 -.1 .1 122.4 Crude materials 14 .9 -5.4 4.7 -3.8 -7.8 -5.3 -1.2 .5 --11..22 --..77 --11..55 110077..44 15 15.6 20.3 .5 -39.2 305.8 -20.2 13.0 18.0 -10.3 -10.7 6.3 99.0 16 Other -5.8 1.0 3.7 13.5 5.9 -18.5 -.9 -1.4 -2.2 -1.6 .3 133.4 1. Not seasonally adjusted. 3. Excludes intermediate materials for food manufacturing and manufactured 2. Figures for consumer prices are those for all urban consumers and reflect a animal feeds. rental equivalence measure of homeownership after 1982. SOURCE. Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 Domestic Nonfinancial Statistics • April 1991 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 Q1 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 3,728.1 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 12 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 20 Final sales, total 4,847.5 5,172.5 5,465.3 5,264.3 5,387.2 5,429.9 5,505.6 5,538.4 21 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 22 Durable 840.3 894.7 938.2 894.2 941.4 930.1 943.4 937.9 23 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 24 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 26 Change in business inventories 26.2 28.3 -2.2 25.0 -11.8 13.4 9.0 -19.5 27 Durable goods 19.9 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 4,147.6 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 32 Wages and salaries 2,431.1 2,573.2 2,705.3 2,612.7 2,651.6 2,6%.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 2,0%.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 professional1 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 profits1 337.6 311.6 297.1 290.9 2%.8 306.6 300.7 n.a. 43 Profits before tax3 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

Summary Statistics A53 2.17 PERSONAL INCOME AND SAVING Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted. 1989 1990 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 8 Other labor income 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 professional1 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 persons2 16.3 8.2 6.7 4.1 5.5 4.3 8.4 8.5 13 Dividends 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 3,6%.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 16,554.2 16,560.8 16.426.1 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 322.1 346.4 363.0 356.5 356.7 359.7 365.5 370.3 33 Noncorporate 192.2 208.0 212.6 216.0 210.3 211.4 213.8 214.9 34 Gove p r r n o m du en c t t a su cc rp o l u u n s t , s o r deficit (—), national income and -95.3 -87.8 -126.0 -111.6 -130.2 -127.3 -106.4 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

A54 Domestic Nonfinancial Statistics • April 1991 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 Q1 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 -126,986 -114,864 -29,803 -28,746 -26,283 -23,102 -29,752 Merchandise exports 250,266 320,337 360,465 89,349 91,738 %,262 %,758 96,159 Merchandise imports -409,766 -447,323 -475,329 -119,152 -120,484 -122,545 -119,860 -125,911 Military transactions, net -3,530 -5,452 -6,319 -1,114 -1,776 -1,287 -1,382 -1,648 Investment income, net 5,326 1,610 -913 17 561 1,995 -999 2,455 Other service transactions, net 9,964 16,971 26,783 6,839 7,900 7,292 7,364 7,465 Remittances, pensions, and other transfers -4,299 -4,261 -3,758 -909 -889 -983 -865 -1,078 U.S. government grants -10,276 -10,744 -10,963 -2,621 -3,742 -2,402 -3,501 -3,027 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) 997 2,969 1,185 574 -47 -659 -379 12 Change in U.S. official reserve assets (increase, -). 9,149 -3,912 -25,293 -5,9% -3,202 -3,177 371 1,739 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -509 127 -535 -211 -204 -247 -216 363 15 Reserve position in International Monetary Fund. 2,070 1,025 471 337 -23 234 493 8 16 Foreign currencies 7,588 -5,064 -25,229 -6,122 -2,975 -3,164 94 1,368 17 Change in U.S. private assets abroad (increase, -). -73,092 -83,232 -102,953 -38,654 -45,4% 36,713 -31,284 -27,811 18 Bank-reported claims3 -42,119 -56,322 -50,684 -21,269 -32,658 52,353 -13,639 -7,603 19 Nonbank-reported claims 5,324 -2,847 1,391 1,877 47 1,202 -1,550 20 U.S. purchase of foreign securities, net -5,251 -7,846 -21,938 -9,623 -4,109 -7,4% -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 U.S. Treasury securities 43,238 41,741 333 12,771 -7,342 -5,897 2,442 12,008 Other U.S. government obligations 1,564 1,309 1,383 190 569 -521 346 134 Other U.S. government liabilities4 -2,503 -710 332 -350 412 -381 1,089 234 Other U.S. liabilities reported by U.S. banks3. 3,918 -319 4,940 -251 -820 -1,278 1,918 1,539 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 29 U.S. bank-reported liabilities 89,026 70,235 61,199 27,845 36,674 -32,264 4,897 32,288 30 U.S. nonbank-reported liabilities 2,863 6,664 2,867 -2,175 1,732 290 1,317 31 Foreign private purchases of U.S. Treasury securities, net -7,643 20,239 29,951 12,618 5,671 -835 3,614 ''' 453 32 Foreign purchases of other U.S. securities, net 42,120 26,353 39,568 10,470 10,793 2,486 2,890 -1,543 33 Foreign direct investments in United States, net 46,894 58,435 72,244 12,375 21,466 5,537 7,236 7,631 34 Allocation of SDRs 0 0 0 0 0 0 0 0 35 Discrepancy 6,790 -8,404 22,443 -2,469 6,117 21,780 28,711 -435 36 Owing to seasonal adjustments -4,953 3,560 2,804 -988 -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 4,532 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

Summary Statistics A55 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data are seasonally adjusted. 1990 IItteemm 11998888 11998899 11999900 June July Aug. Sept. Oct. Nov/ Dec.'' 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments, f.a.s. value 322,426 363,812 394,045 34,221 32,125 32,549 32,010 35,006 34,194 33,460 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 2 Customs value 440,952 473,211 495,042 39,561 41,244 42,283 41,337 45,994 43,106 39,712 Trade balance 3 Customs value -118,526 -109,399 -100,997 -5,340 -9,119 -9,734 -9,326 -10,988 -8,912 -6,252 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 1991 Type 1987 1988 1989 July Aug. Sept. Oct. Jan." 1 Total 45,798 47,802 74,609 77,906 78,909 80,024 82,852 83,059 83,340 85,025 2 Gold stock, including Exchange 11,078 11,057 11,059 11,064 11,065 11,063 11,060 11,059 11,058 11,058 Stabilization Fund 10,283 9,637 9,951 10,699 10,780 10,666 10,876 11,059 10,989 10,922 3 Special drawing rights2,3 4 ReseMrvoen peotasriyti oFnu nind International 11,349 9,745 9,048 8,686 8,890 8,881 9,066 8,871 9,076 9,468 5 Foreign currencies4 13,088 17,363 44,551 47,457 48,174 49,414 51,850 52,070 52,217 53,577 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 1991 AAsssseettss 11998877 11998888 11998899 July Aug. Sept. Oct. Nov. Dec. Jan.'' 1 Deposits 244 347 589 279 337 360 297 264 369 271 Assets held in custody 2 U.S. Treasury securities2 195,126 232,547 224,911 256,585 261,051 261,321 266,749 272,399 278,499 286,722 3 Earmarked gold3 13,919 13,636 13,456 13,422 13,412 13,419 13,415 13,389 13,387 13,377 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

A56 International Statistics • April 1991 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data1 Millions of dollars, end of period 1990 June July Aug. Sept. Oct. Nov. Dec. All foreign countries 1 Total, all currencies 518,618 505,595 545,366 524,010 531,418 551,346 546,140 552,510 558,608' 568,502 2 Claims on United States 138,034 169,111 198,835 179,258 174,583 178,236 182,555 177,539 180,979 188,150 3 Parent bank 105,845 129,856 157,092 138,384 133,682 137,558 140,865 135,536 140,352 148,491 4 Other banks in United States 16,416 14,918 17,042 15,166 15,239 14,500 14,266 13,261 12,927 13,2% 5 Nonbanks 15,773 24,337 24,701 25,708 25,662 26,178 27,424 28,742 27,700 26,363 6 Claims on foreigners 342,520 299,728 300,575 293,627 304,674 313,831 311,254 319,318 322,%1 312,347 7 Other branches of parent bank 122,155 107,179 113,810 108,464 115,353 121,705 123,359 128,747 135,179 134,567 8 Banks 108,859 96,932 90,703 85,780 85,911 88,768 83,311 82,706 81,383 72,985 9 Public borrowers 21,832 17,163 16,456 16,220 16,264 16,157 16,379 16,335 16,588 17,501 10 Nonbank foreigners 89,674 78,454 79,606 83,163 87,146 87,201 88,205 91,530 89,811 87,294 11 Other assets 38,064 36,756 45,956 51,125 52,161 59,279 52,331 55,653 54,668' 68,005 12 Total payable in U.S. dollars 350,107 357,573 382,498' 349,864' 346,091' 357,669' 359,828' 362,12V 371,228' 390,175 13 Claims on United States 132,023 163,456 191,184 171,551 166,294 169,714 173,978 168,956 172,145 179,561 14 Parent bank 103,251 126,929 152,294 133,167 128,066 131,994 135,068 129,850 134,255 142,349 15 Other banks in United States 14,657 14,167 16,386 14,575 14,375 13,513 13,416 12,441 12,078 12,513 16 Nonbanks 14,115 22,360 22,504 23,809 23,853 24,207 25,494 26,665 25,812 24,699 17 Claims on foreigners 202,428 177,685 169,690 158,452 157,910 163,152 163,650 168,345 174,397 173,712 18 Other branches of parent bank 88,284 80,736 82,949 76,410 79,241 82,564 84,378 90,198 95,599 94,939 19 Banks 63,707 54,884 48,396 42,918 38,815 40,733 39,419 37,531 37,740 36,439 20 Public borrowers 14,730 12,131 10,961 10,956 10,652 10,939 11,166 11,201 11,199 12,297 21 Nonbank foreigners 35,707 29,934 27,384 28,168 29,202 28,916 28,687 29,415 29,859 30,037 22 Other assets 15,656 16,432 21,624' 19,861' 21,887' 24,803' 22,200' 24,827' 24,686' 36,902 United Kingdom 23 Total, all currencies 158,695 156,835 161,947 167,885 175,254 184,933 178,484 184,660 188,182' 193,303 24 Claims on United States 32,518 40,089 39,212 39,904 40,418 40,092 42,568 39,862 42,301 45,560 25 Parent bank 27,350 34,243 35,847 35,924 36,564 36,140 39,042 35,904 38,453 42,413 26 Other banks in United States 1,259 1,123 1,058 730 894 1,037 717 694 1,088 792 27 Nonbanks 3,909 4,723 2,307 3,250 2,960 2,915 2,809 3,264 2,760 2,355 28 Claims on foreigners 115,700 106,388 107,657 108,080 114,254 118,423 114,869 122,203 124,077 115,536 29 Other branches of parent bank 39,903 35,625 37,728 38,068 41,181 43,581 44,408 47,390 49,501 46,367 30 Banks 36,735 36,765 36,159 34,194 35,085 37,623 34,094 35,480 36,133 31,604 31 Public borrowers 4,752 4,019 3,293 3,740 3,619 3,757 3,639 3,521 3,675 3,860 32 Nonbank foreigners 34,310 29,979 30,477 32,078 34,369 33,462 32,728 35,812 34,768 33,705 33 Other assets 10,477 10,358 15,078 19,901 20,582 26,418 21,047 22,595 21,804' 32,207 34 Total payable in U.S. dollars 100,574 103,503 103,208' 100,641' 102,803r 106,891' 106,899' 109,950' 115,283' 125,328 35 Claims on United States 30,439 38,012 36,404 36,158 36,230 35,979 37,991 35,429 37,668 41,259 36 Parent bank 26,304 33,252 34,329 33,509 33,716 33,585 36,024 33,145 35,614 39,609 37 Other banks in United States 1,044 964 843 552 681 721 460 419 611 334 38 Nonbanks 3,091 3,796 1,232 2,097 1,833 1,673 1,507 1,865 1,443 1,316 39 Claims on foreigners 64,560 60,472 59,062 57,802 58,278 60,390 59,817 63,720 66,876 63,701 40 Other branches of parent bank 28,635 28,474 29,872 30,050 31,220 32,976 33,990 37,069 39,630 37,142 41 Banks 19,188 18,494 16,579 14,625 13,621 14,570 13,212 13,571 13,915 13,135 42 Public borrowers 3,313 2,840 2,371 2,942 2,839 2,8% 2,866 2,790 2,862 3,143 43 Nonbank foreigners 13,424 10,664 10,240 10,185 10,598 9,948 9,749 10,290 10,469 10,281 44 Other assets 5,575 5,019 7,742' 6,681' 8,295' 10,522' 9,091' 10,801' 10,739' 20,368 Bahamas and Caymans 45 Total, all currencies 160,321 170,639 176,006 154,354 145,813 150,695 153,234 153,497 153,615 161,968 46 Claims on United States 85,318 105,320 124,205 107,244 99,918 103,521 106,574 106,977 106,517 112,643 47 Parent bank 60,048 73,409 87,882 72,115 64,748 68,507 70,145 70,845 71,249 77,527 48 Other banks in United States 14,277 13,145 15,071 13,603 13,412 12,625 12,539 11,605 11,007 11,869 49 Nonbanks 10,993 18,766 21,252 21,526 21,758 22,389 23,890 24,527 24,261 23,247 50 Claims on foreigners 70,162 58,393 44,168 39,812 38,393 39,595 39,573 38,062 38,611 41,354 51 Other branches of parent bank 21,277 17,954 11,309 11,906 11,785 12,031 11,638 12,152 12,697 13,416 52 Banks 33,751 28,268 22,611 18,492 16,761 17,543 18,076 15,994 16,244 16,309 53 Public borrowers 7,428 5,830 5,217 4,393 4,307 4,554 4,818 4,876 4,772 5,806 54 Nonbank foreigners 7,706 6,341 5,031 5,021 5,540 5,467 5,041 5,040 4,898 5,823 55 Other assets 4,841 6,926 7,633 7,298 7,502 7,579 7,087 8,458 8,487 7,971 56 Total payable in U.S. dollars 151,434 163,518 170,780 149,943 140,966 146,103 149,233 148,862 149,142 157,664 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

Summary Statistics A57 3.14—Continued 1990 LLiiaabbiilliittyy aaccccoouunntt 11998877 11998888 11998899 June July Aug. Sept. Oct. Nov. Dec. All foreign countries 57 Total, all currencies 518,618 505,595 545,366 524,010 531,418 551,346 546,140 552,510 558,608r 568,502 58 Negotiable CDs 30,929 28,511 23,500 23,504 21,805 22,917 21,977 22,089 21,521 18,060 59 To United States 161,390 185,577 197,239 169,769 163,275 167,410 172,882 167,543 171,575r 189,065 60 Parent bank 87,606 114,720 138,412 113,151 105,401 109,818 117,352 113,066 115,613r 138,802 61 Other banks in United States 20,355 14,737 11,704 9,092 9,454 10,264 8,976 7,984 9,14c 7,336 62 Nonbanks 53,429 56,120 47,123 47,526 48,420 47,328 46,554 46,493 46,822r 42,927 63 To foreigners 304,803 270,923 2%,850 299,951 314,503 321,365 317,204 327,139 328,534' 311,663 64 Other branches of parent bank 124,601 111,267 119,591 113,653 119,476 124,393 125,382 131,045 137,849' 138,799 65 Banks 87,274 72,842 76,452 73,8% 78,190 79,485 75,353 75,815 72,352 58,981 66 Official institutions 19,564 15,183 16,750 17,637 19,468 17,801 17,475 18,436 17,9% 14,776 67 Nonbank foreigners 73,364 71,631 84,057 94,765 97,369 99,686 98,994 101,843 100,337 99,107 68 Other liabilities 21,4% 20,584 27,777 30,786 31,835 39,654 34,077 35,739 36,978' 49,714 69 Total payable in U.S. dollars 361,438 367,483 396,613 358,681 355,782 365,928 364,940 363,931 372,124 394,868 70 Negotiable CDs 26,768 24,045 19,619 18,928 16,519 17,588 17,219 17,022 16,845 14,094 71 To United States 148,442 173,190 187,286 158,173 150,943 155,171 159,027 153,318 156,779' 175,366 7? Parent bank 81,783 107,150 132,563 106,818 98,928 103,355 109,458 104,619 106,828' 130,623 73 Other banks in United States 18,951 13,468 10,519 7,741 7,884 8,791 7,501 6,486 7,686' 5,925 74 Nonbanks 47,708 52,572 44,204 43,614 44,131 43,025 42,068 42,213 42,265' 38,818 75 To foreigners 177,711 160,766 176,460 168,642 174,616 177,484 175,725 178,%9 183,461' 178,707 76 Otherbranches of parent bank 90,469 84,021 87,636 78,646 81,332 84,157 85,303 89,658 95,556' 97,833 77 Banks 35,065 28,493 30,537 27,434 28,045 28,945 26,576 23,669 25,022 20,266 78 Official institutions 12,409 8,224 9,873 9,066 10,613 9,710 9,346 9,689 9,091 7,906 79 Nonbank foreigners 39,768 40,028 48,414 53,4% 54,626 54,672 54,500 55,953 53,792 52,702 80 Other liabilities 8,517 9,482 13,248 12,938 13,704 15,685 12,969 14,622 15,039 26,701 United Kingdom 81 Total, all currencies 158,695 156,835 161,947 167,885 175,254 184,933 178,484 184,660 188,182' 193,303 8? Negotiable CDs 26,988 24,528 20,056 19,672 17,795 18,703 17,542 17,557 17,144 14,256 83 To United States 23,470 36,784 36,036 32,291 32,320 33,365 35,483 32,143 36,500 39,928 84 Parent bank 13,223 27,949 29,726 23,158 21,952 23,399 25,461 22,013 26,165 31,806 85 Other banks in United States 1,536 2,037 1,256 1,615 1,626 1,535 1,765 1,430 1,671 1,505 86 Nonbanks 8,711 6,898 5,054 7,518 8,742 8,431 8,257 8,700 8,664 6,617 87 To foreigners 98,689 86,026 92,307 99,279 107,533 109,372 106,4% 114,959 113,958 108,531 88 Other branches of parent bank 33,078 26,812 27,397 26,506 28,944 28,%7 30,487 32,357 34,406 36,709 89 Banks 34,290 30,609 29,780 28,575 32,420 34,647 30,113 33,870 32,844 25,141 90 Official institutions 11,015 7,873 8,551 10,263 11,314 9,902 9,578 10,788 9,534 8,346 91 Nonbank foreigners 20,306 20,732 26,579 33,935 34,855 35,856 36,318 37,944 37,174 38,335 92 Other liabilities 9,548 9,497 13,548 16,643 17,606 23,493 18,963 20,001 20.58C 30,588 93 Total payable in U.S. dollars 102,550 105,907 108,178 101,530 104,372 108,532 107,216 108,064 114,090 124,638 94 Negotiable CDs 24,926 22,063 18,143 17,233 14,831 15,758 15,502 15,237 15,100 12,710 95 To United States 17,752 32,588 33,056 28,160 27, %7 28,779 30,368 26,867 31,117 34,756 96 Parent bank 12,026 26,404 28,812 22,190 21,208 22,423 23, %3 20,334 24,381 30,014 97 Other banks in United States 1,308 1,752 1,065 1,325 1,175 1,228 1,471 1,035 1,318 1,156 98 Nonbanks 4,418 4,432 3,179 4,645 5,584 5,128 4,934 5,498 5,418 3,586 99 To foreigners 55,919 47,083 50,517 49,672 54,591 55,252 54,679 57,639 59,787 60,014 100 Other branches of parent bank 22,334 18,561 18,384 16,199 17,408 17,347 18,560 20,797 23,288 25,957 101 Banks 15,580 13,407 12,244 9,911 11,251 13,042 11,116 10,465 11,911 9,503 10? Official institutions 7,530 4,348 5,454 5,305 6,515 5,463 5,324 5,751 5,000 4,677 103 Nonbank foreigners 10,475 10,767 14,435 18,257 19,417 19,400 19,679 20,626 19,588 19,877 104 Other liabilities 3,953 4,173 6,462 6,465 6,983 8,743 6,667 8,321 8,086 17,158 Bahamas and Caymans 105 Total, all currencies 160,321 170,639 176,006 154,354 145,813 150,695 153,234 153,497 153,615 161,968 106 Negotiable CDs 885 . 953 678 535 548 553 553 560 561 646 107 To United States 113,950 122,332 124,859 103,592 95,904 100,622 104,211 103,545 103,852 114,391 108 Parent bank 53,239 62,894 75,188 58,880 51,415 56,092 62,276 62,474 61,227 74,995 109 Other banks in United States 17,224 11,494 8,883 5,984 6,228 7,039 5,398 4,959 5,798' 4,399 110 Nonbanks 43,487 47,944 40,788 38,728 38,261 37,491 36,537 36,112 36,827' 34,997 111 To foreigners 43,815 45,161 47,382 47,613 47,010 46,922 46,237 46,867 46,299 44,444 11? Other branches of parent bank 19,185 23,686 23,414 24,184 24,560 24,%5 24,781 25,864 25,579 24,715 in Banks 10,769 8,336 8,823 8,%9 8,120 7,469 7,519 6,794 6,569 5,588 114 Official institutions 1,504 1,074 1,097 960 999 943 731 703 763 622 115 Nonbank foreigners 12,357 12,065 14,048 13,500 13,331 13,545 13,206 13,506 13,388 13,519 116 Other liabilities 1,671 2,193 3,087 2,614 2,351 2,598 2,233 2,525 2,903 2,487 117 Total payable in U.S. dollars 152,927 162,950 171,250 149,680 140,377 145,670 148,589 147,749 147,962 156,784 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • April 1991 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1990' IItteemm 11998888 11998899 June July Aug. Sept. Oct. Nov. Dec.p 1 Total1 333330000044444,,,,,111113333322222 333331111122222,,,,,444447777722222 333331111100000,,,,,000004444411111 333331111122222,,,,,666669999911111 333332222211111,,,,,444441111188888 333332222233333,,,,,888883333344444 333332222299999,,,,,666662222233333 333334444400000,,,,,777772222222222 333334444433333,,,,,444441111100000 By type 2 Liabilities reported by banks in the United States^ 3333311111,,,,,555551111199999 3333366666,,,,,444449999966666 3333377777,,,,,999997777711111 3333388888,,,,,999998888866666 4444400000,,,,,555550000011111 3333399999,,,,,888884444422222 4444444444,,,,,111114444466666 4444422222,,,,,999999999977777 3333388888,,,,,888882222255555 3 U.S. Treasury bills and certificates3 111110000033333,,,,,777772222222222 7777766666,,,,,999998888855555 7777711111,,,,,888880000044444 7777722222,,,,,666669999900000 7777722222,,,,,888880000033333 7777722222,,,,,444447777722222 7777722222,,,,,444445555577777 8888800000,,,,,333338888855555 7777788888,,,,,444449999922222 U.S. Treasury bonds and notes 4 Marketable 111115555522222,,,,,444442222299999 111117777799999,,,,,222226666644444 111117777788888,,,,,000001111166666 111117777788888,,,,,777774444400000 111118888855555,,,,,555553333344444 111118888899999,,,,,333333333344444 111119999900000,,,,,777771111166666 111119999955555,,,,,444448888811111 222220000033333,,,,,333334444433333 5 Nonmarketable4 555552222233333 555556666688888 33333,,,,,666664444444444 33333,,,,,666666666688888 33333,,,,,666669999922222 33333,,,,,777771111177777 33333,,,,,777774444411111 33333,,,,,777776666655555 44444,,,,,444449999911111 6 U.S. securities other than U.S. Treasury securities5 1111155555,,,,,999993333399999 1111199999,,,,,111115555599999 1111188888,,,,,666660000066666 1111188888,,,,,666660000077777 1111188888,,,,,888888888888888 1111188888,,,,,444446666699999 1111188888,,,,,555556666633333 1111188888,,,,,000009999944444 1111188888,,,,,222225555599999 By area 7 Western Europe1 111112222233333,,,,,777775555522222 111113333333333,,,,,444441111177777 111114444477777,,,,,111116666677777 111114444499999,,,,,888884444455555 111115555522222,,,,,777777777777777 111115555566666,,,,,444443333322222 111116666633333,,,,,333338888833333 111116666699999,,,,,555557777733333 111117777700000,,,,,888881111166666 99999,,,,,555551111133333 99999,,,,,444448888822222 66666,,,,,999996666611111 88888,,,,,444441111155555 1111111111,,,,,000008888833333 1111100000,,,,,111117777711111 88888,,,,,999990000033333 88888,,,,,666663333399999 88888,,,,,666661111188888 9 Latin America and Caribbean 1111100000,,,,,000003333300000 88888,,,,,777774444400000 1111100000,,,,,444445555511111 99999,,,,,999997777733333 1111111111,,,,,111119999900000 1111111111,,,,,444440000066666 1111111111,,,,,222224444444444 1111144444,,,,,000008888811111 1111155555,,,,,666665555544444 10 Asia 111115555511111,,,,,888888888877777 111115555533333,,,,,333333333388888 111113333366666,,,,,333333333355555 111113333355555,,,,,666669999955555 111113333377777,,,,,000000000088888 111113333366666,,,,,333338888833333 111113333377777,,,,,000008888822222 111113333399999,,,,,333337777766666 111113333388888,,,,,222220000022222 11111,,,,,444440000033333 11111,,,,,000003333300000 999994444466666 999991111177777 11111,,,,,666669999977777 11111,,,,,333338888833333 11111,,,,,333330000055555 11111,,,,,444440000044444 11111,,,,,333338888877777 12 Other countries6 77777,,,,,555554444488888 66666,,,,,444446666699999 88888,,,,,111118888833333 77777,,,,,888884444488888 77777,,,,,666666666655555 88888,,,,,000005555588888 77777,,,,,777770000077777 77777,,,,,666665555500000 88888,,,,,000003333311111 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 69,683' 2 Banks' own claims 26,180 51,271 68,983 65,127 61,100 66,655 67,965 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 2,843' 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

Nonbank-Reported Data A59 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 1990 HHoollddeerr aanndd ttyyppee ooff lliiaabbiilliittyy 11998888 11998899 11999900 June July Aug. Sept. Oct. Nov.' Dec.p 1 All foreigners 685,339 736,663 757,768 708,044 719,860 737,890 741,998 750,222' 746,976 757,768 7 Banks' own liabilities 514,532 577,283 579,364 544,775 554,516 570,277 572,174 576,823' 563,4% 579,364 3 Demand deposits 21,863 22,030 21,733 20,347 19,723 20,505 22,086 20,32c 19,855 21,733 4 Time deposits2 152,164 168,735 167,815 150,695 153,533 156,254 158,638 158,345' 162,070 167,815 5 Other3 51,366 67,700 67,272 66,016 67,214 74,923 66,373 74,426' 71,411 67,272 6 Own foreign offices4 289,138 318,818 322,545 307,718 314,046 318,594 325,077 323,731' 310,161 322,545 7 Banks' custody liabilities5 170,807 159,380 178,404 163,269 165,344 167,614 169,823 173,400' 183,479 178,404 8 U.S. Treasury bills and certificates6 115,056 91,100 98,383 90,082 91,884 93,038 91,464 94,971 101,430 98,383 9 Other negotiable and readily transferable 16,426 19,526 17,286 17,865 17,5% 16,983 17,198 1177,,668811'' 1188,,229944 1177,,228866 10 Other 39,325 48,754 62,734 55,322 55,864 57,593 61,162 60,747 63,755 62,734 11 Nonmonetary international and regional organizations8 3,224 4,772 5,720 4,994 4,112 4,290 5,206 4,507 4,381 5,720 1? Banks' own liabilities 2,527 3,156 4,338 3,594 2,790 2,330 3,894 3,472 2,236 4,338 13 Demand deposits 71 96 36 29 46 39 101 57 33 36 14 1,183 927 1,018 1,367 938 1,303 1,245 885 760 1,018 15 Other3 1,272 2,133 3,284 2,198 1,807 987 2,548 2,529 1,443 3,284 16 Banks' custody liabilities5 698 1,616 1,382 1,399 1,322 1,959 1,311 1,034 2,145 1,382 17 U.S. Treasury bills and certificates6 57 197 365 147 148 1,095 479 248 1,077 365 18 Other negotiable and readily transferable instruments7 641 1,417 1,017 1,253 1,159 881199 881177 778822 11,,002222 11,,001177 19 Other 0 2 0 0 15 45 15 5 46 0 20 Official institutions9 135,241 113,481 117,317 109,774 111,676 113,304 112,313 116,602' 123,381 117,317 71 Banks' own liabilities 27,109 31,108 34,032 33,878 35,239 36,465 35,877 39,358' 37,891 34,032 7? Demand deposits 1,917 2,1% 1,940 1,611 1,516 1,914 2,498 2,121 1,784 1,940 73 9,767 10,495 13,598 9,951 11,290 11,039 11,187 11,IOC 12,702 13,598 24 Other. 15,425 18,417 18,494 22,316 22,433 23,512 22,192 26,137' 23,406 18,494 75 Banks' custody liabilities5 108,132 82,373 83,285 75,8% 76,437 76,839 76,436 77,244 85,490 83,285 26 U.S. Treasury bills and certificates6 103,722 76,985 78,492 71,804 72,690 72,803 72,472 72,457 80,385 78,492 77 Other negotiable and readily transferable 4,130 5,028 4,590 3,650 3,5% 33,,668855 33,,667766 44,,336611 44,,772255 44,,559900 28 Other 280 361 203 443 150 351 289 427 380 203 29 Banks10 459,523 515,229 540,203 497,345 507,243 524,512 529,813 528,751' 522,536 540,203 30 Banks' own liabilities 409,501 454,227 460,881 424,831 433,379 449,097 451,339 450, %r 441,354 460,881 31 Unaffiliated foreign banks 120,362 135,409 138,337 117,114 119,334 130,502 126,262 127,23C 131,193 138,337 37 Demand deposits 9,948 10,279 10,048 9,484 9,224 9,797 10,405 8,989' 8,995 10,048 33 Time deposits2 80,189 90,557 89,063 72,618 74,103 77,585 80,214 80,35C 83,736 89,063 34 Other3 30,226 34,573 39,226 35,012 36,007 43,120 35,643 37,892' 38,462 39,226 35 Own foreign offices4 289,138 318,818 322,545 307,718 314,046 318,594 325,077 323,731' 310,161 322,545 36 Banks' custody liabilities5 50,022 61,002 79,322 72,514 73,864 75,416 78,474 77,79C 81,182 79,322 37 U.S. Treasury bills and certificates6 7,602 9,367 12,965 13,502 13,964 13,855 13,009 13,646 13,352 12,965 38 Other negotiable and readily transferable 5,725 5,124 5,356 5,757 5,759 55,,336666 66,,118877 55,,884422'' 55,,883377 55,,335566 39 Other 36,694 46,510 61,001 53,254 54,141 56,195 59,278 58,302 61,993 61,001 40 Other foreigners 87,351 103,182 94,527 95,931 %,828 95,784 94,666 100,362 %,678 94,527 41 75,396 88,793 80,113 82,471 83,107 82,385 81,063 83,031 82,016 80,113 47 9,928 9,459 9,709 9,223 8,937 8,755 9,082 9,153 9,043 9,709 43 61,025 66,757 64,136 66,759 67,202 66,326 65,992 66,010 64,872 64,136 44 Other3 4,443 12,577 6,268 6,489 6,968 7,304 5,990 7,868 8,100 6,268 45 11,956 14,389 14,414 13,460 13,721 13,400 13,602 17,331 14,663 14,414 46 U.S. Treasury bills and certificates6 3,675 4,551 6,561 4,630 5,082 5,285 5,504 8,621 6,616 6,561 47 Other negotiable and readily transferable 5,929 7,958 6,323 7,205 7,082 77,,111133 66,,551188 66,,669977 66,,771100 66,,332233 48 Other 2,351 1,880 1,530 1,625 1,558 1,001 1,580 2,013 1,336 1,530 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 6,425 7,203 6,522 6,429 5,909 55,,771133 66,,334466 66,,119999 66,,446666 66,,552222 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

A60 International Statistics • April 1991 3.17—Continued 1990 AArreeaa aanndd ccoouunnttrryy 11998888 11998899 11999900 June July Aug. Sept. Oct. Nov. Dec/ 1 Total 685,339 736,663 757,768 708,044 719,860 737,890 741,998 750,222' 746,976' 757,768 2 Foreign countries 682,115 731,892 752,048 703,051 715,747 733,601 736,792 745,716' 742,595' 752,048 3 Europe 231,912 237,489 254,802 234,412 236,010 245,188 244,157 245,830' 247,534' 254,802 4 Austria 1,155 1,233 1,229 1,531 1,498 1,544 1,436 1,401 1,385' 1,229 5 Belgium-Luxembourg 10,022 10,648 12,407 10,078 10,598 11,537 12,126 12,207 11,507' 12,407 6 Denmark 2,200 1,415 1,412 2,411 2,581 2,238 2,055 1,984 1,781 1,412 7 Finland 285 570 602 387 485 463 392 660 422 602 8 France 24,777 26,903 30,925 23,566 23,110 24,201 29,116 29,128 29,193 30,925 9 Germany 6,772 7,578 7,446 8,359 7,671 7,605 7,845 8,439 8,195 7,446 10 Greece 672 1,028 934 833 877 923 1,435 993 949 934 11 Italy 14,599 16,169 17,918 16,779 17,114 17,117 16,361 16,984' 16,402' 17,918 12 Netherlands 5,316 6,613 5,375 7,626 5,972 6,209 5,385 6,082 6,056' 5,375 13 Norway 1,559 2,401 2,358 2,420 1,793 2,192 1,951 1,875 2,330' 2,358 14 Portugal 903 2,407 2,943 3,082 3,073 2,934 2,992 2,970 2,944' 2,943 15 Spain 5,494 4,364 7,701 4,391 4,922 4,447 4,343 5,312 7,347' 7,701 16 Sweden 1,284 1,491 1,837 1,769 1,586 1,495 833 1,706 2,304' 1,837 17 Switzerland 34,199 34,496 37,751 34,780 33,557 34,545 34,637 34,463' 34,837' 37,751 18 Turkey 1,012 1,818 1,133 1,596 1,654 1,897 1,634 1,451 1,358' 1,133 19 United Kingdom 111,811 102,362 109,211 98,515 100,934 108,181 104,676 100,961 103,008' 109,211 20 Yugoslavia 529 1,474 928 2,169 2,436 2,272 2,043 1,753 1,571' 928 21 Other Western Europe1 8,598 13,563 11,025 12,360 14,619 14,057 13,145 15,934' 14,339' 11,025 22 U.S.S.R 138 350 119 75 194 56 240 234 220 119 23 Other Eastern Europe 591 608 1,546 1,686 1,335 1,275 1,515 1,294 1,388' 1,546 24 Canada 21,062 18,865 20,347 19,956 20,056 21,122 20,796 19,654 20,679' 20,347 25 Latin America and Caribbean 271,146 310,948 329,610 313,130 316,656 320,056 325,927 333,603' 321,441' 329,610 2267 Argentina 7,804 7,304 7,361 7,993 8,163 7,844 7,981 7,717 7,659 7,361 Bahamas 86,863 99,341 107,291 99,255 98,292 101,635 108,280 110,155' 97,695 107,291 28 Bermuda 2,621 2,884 2,818 3,097 2,824 2,656 2,739 2,482' 2,518' 2,818 29 Brazil 5,314 6,334 5,833 6,052 6,083 6,329 6,058 5,892 6,448' 5,833 30 British West Indies 113,840 138,263 143,320 137,169 142,722 142,050 140,947 146,477' 144,473' 143,320 31 Chile 2,936 3,212 3,145 3,449 3,540 3,491 3,135 3,170 3,422 3,145 32 Colombia 4,374 4,653 4,491 4,508 4,474 4,344 3,926 4,284 4,251 4,491 33 Cuba 10 10 11 10 15 11 10 49 9 11 34 Ecuador 1,379 1,391 1,379 1,368 1,349 1,348 1,348 1,314 1,310 1,379 35 Guatemala 1,195 1,312 1,534 1,473 1,523 1,496 1,517 1,485 1,478 1,534 36 Jamaica 269 209 243 224 209 213 217 219 228' 243 37 Mexico 15,185 15,423 16,792 16,391 16,070 16,325 16,486 16,465 16,501' 16,792 38 Netherlands Antilles 6,420 6,310 7,381 6,628 6,409 6,429 6,558 7,126 7,351 7,381 39 Panama 4,353 4,361 4,575 4,547 4,388 4,648 4,632 4,592 4,644 4,575 40 Peru 1,671 1,984 1,295 1,473 1,405 1,369 1,362 1,360 1,327 1,295 41 Uruguay 1,898 2,284 2,522 2,529 2,560 2,531 2,512 2,512 2,446 2,522 42 Venezuela 9,147 9,468 12,758 10,292 9,830 10,435 11,107 11,351 12,988 12,758 43 Other 5,868 6,206 6,861 6,673 6,803 6,901 7,113 6,951 6,693' 6,861 44 Asia 147,838 156,201 113388,,226622 112266,,222233 113344,,113344 113377,,779933 113366,,990022 113377,,223366 114433,,994433'' 113388,,226622 China 45 Mainland 1,895 1,773 2,421 1,871 1,890 2,324 2,115 2,173' 2,493 2,421 46 Taiwan 26,058 19,588 11,268 11,006 12,611 12,639 12,468 12,237' 11,512' 11,268 47 Hong Kong 12,248 12,416 12,662 12,369 13,316 13,833 13,836 13,767 13,843 12,662 48 India 699 780 1,225 966 909 806 1,035 953 1,116 1,225 49 Indonesia 1,180 1,281 1,238 1,530 1,377 1,130 1,398 1,261 1,261 1,238 50 Israel 1,461 1,243 2,767 1,202 1,122 1,125 939 921 3,075 2,767 51 Japan 74,015 81,184 68,582 62,402 66,299 68,676 68,926 67,923 69,333' 68,582 52 Korea 2,541 3,215 2,231 2,101 2,157 2,316 2,564 2,442 2,732 2,231 53 Philippines 1,163 1,766 1,510 1,329 1,314 1,350 1,340 1,274 1,549 1,510 54 Thailand 1,236 2,093 1,441 2,125 2,745 2,233 1,626 1,448 1,681 1,441 55 Middle-East oil-exporting countries3 12,083 13,370 15,816 13,007 14,027 14,928 14,047 16,412' 17,403 15,816 56 Other 13,260 17,491 17,100 16,314 16,367 16,433 16,609 16,426' 17,947' 17,100 57 Africa 3,991 3,823 4,580 3,650 3,412 4,638 4,152 4,223 4,388 4,580 58 Egypt 911 686 1,377 592 583 1,505 970 1,099 996 1,377 59 Morocco 68 78 101 81 95 77 93 87 90 101 60 South Africa 437 205 225 318 239 332 393 234 282 225 61 Zaire 85 86 53 41 38 43 44 45 55 53 62 Oil-exporting countries4 1,017 1,121 1,109 890 873 1,072 966 1,050 1,288 1,109 63 Other 1,474 1,648 1,714 1,728 1,584 1,609 1,687 1,708 1,678 1,714 64 Other countries 6,165 4,564 4,447 5,680 5,480 4,803 4,858 5,169 4,610 4,447 65 Australia 5,293 3,867 3,672 5,052 4,892 4,122 4,127 4,371 3,804 3,672 66 All other 872 697 775 628 588 681 732 797 807 775 67 Nonmonetary international and regional organizations 3,224 4,772 5,720 4,994 4,112 4,290 5,206 4,507 4,381' 5,720 68 International 2,503 3,825 4,193 3,856 2,981 3,150 3,982 3,392 3,260' 4,193 69 Latin American regional 589 684 1,048 923 812 569 668 627 809 1,048 70 Other regional6 133 263 479 215 319 571 556 487 312 479 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

Nonbank-Reported Data A61 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 11998888 11998899 11999900 June July Aug. Sept. Oct. Nov.' Dec." 1 491,165 534,022 511,941 489,170 488,235 494,987 493,239 494,833r 504,527 511,941 2 Foreign countries 489,094 530,583 507,492 484,669 483,961 491,343 488,044 490,803r 500,117 507,492 3 116,928 119,024 113,627 102,398 102,368 106,463 105,418 103,631 107,188 113,627 4 483 415 385 337 399 287 373 247 268 385 5 Belgium-Luxembourg 8,515 6,478 5,435 5,621 6,754 6,682 5,627 5,147 6,441 5,435 6 Denmark 483 582 497 590 503 676 669 489 870 497 7 1,065 1,027 1,062 1,035 1,112 1,177 962 814 876 1,062 8 13,243 16,146 14,530 14,794 13,746 14,288 14,398 13,750 13,343 14,530 9 Germany 2,329 2,865 3,418 2,870 2,595 2,939 3,403 3,242 3,634 3,418 10 433 788 729 514 529 610 686 729 720 729 11 Italy 7,936 6,662 5,989 5,131 4,615 4,498 4,634 5,070 5,171 5,989 1? Netherlands 2,541 1,904 1,725 2,041 1,744 1,636 2,219 1,711 1,849 1,725 13 Norway 455 609 787 745 692 716 744 732 661 787 14 Portugal 261 376 303 543 543 427 412 444 368 303 15 Spain 1,823 1,930 2,758 2,084 2,125 2,100 2,312 2,373 2,584 2,758 16 Sweden 1,977 1,773 2,068 2,614 3,362 3,407 2,447 2,577' 2,251 2,068 17 Switzerland 3,895 6,141 4,472 5,249 4,297 3,712 3,928 3,475r 3,995 4,472 18 Turkey 1,233 1,071 1,377 1,232 1,186 1,434 1,377 1,371 1,346 1,377 19 United Kingdom 65,706 65,527 65,317 53,592 54,804 58,630 57,830 58,267' 59,919 65,317 70 Yugoslavia 1,390 1,329 1,142 1,095 1,070 1,029 1,120 1,226 1,160 1,142 21 Other Western Europe2 1,152 1,302 582 821 960 694 697 667 619 582 77 U.S.S.R 1,255 1,179 552 754 565 624 940 825' 653 552 23 Other Eastern Europe 754 921 498 737 765 897 640 474 459 498 24 Canada 18,889 15,450 16,091 16,518 16,391 15,431 15,445 16,185' 14,295 16,091 75 Latin America and Caribbean 214,264 230,392 230,072 208,180 199,729 204,012 211,783 216,741' 228,533 230,072 ?6 Argentina 11,826 9,270 6,889 7,600 7,166 7,111 7,549 7,028 7,024 6,889 ?7 Bahamas 66,954 77,921 77,092 66,870 66,977 67,870 71,534 71,934' 71,026 77,092 78 Bermuda 483 1,315 3,400 1,830 1,988 2,443 3,736 3,662' 4,291 3,400 ?9 Brazil 25,735 23,749 17,850 20,683 20,180 18,906 18,651 18,626 18,393 17,850 30 British West Indies 55,888 68,709 85,905 74,601 66,437 70,980 73,530 77,539' 86,263 85,905 31 Chile 5,217 4,353 3,269 3,453 3,489 3,430 3,264 3,372 3,373 3,269 37 Colombia 22,,994444 2,784 2,581 2,596 2,542 2,700 2,563 2,544 2,532 2,581 33 Cuba 11 1 0 0 1 2 0 0 1 0 34 Ecuador 2,075 1,688 1,387 1,485 1,515 1,507 1,498 1,487 1,498 1,387 35 Guatemala4 198 197 191 188 196 207 215 211 152 191 36 Jamaica4 212 297 173 258 262 243 254 262 265 173 37 24,637 23,376 15,841 14,234 14,689 14,953 15,366 15,359 15,380 15,841 38 Netherlands Antilles 1,306 1,921 7,973 1,722 1,873 1,632 1,818 3,310 7,386 7,973 39 Panama 2,521 1,740 1,471 1,598 1,491 1,491 1,556 1,463 1,449 1,471 40 Peru 1,013 771 663 683 661 644 649 667 730 663 41 910 928 786 842 843 834 804 794 812 786 47 Venezuela 10,733 9,647 3,269 8,136 8,064 7,642 7,274 7,102 6,567 3,269 43 Other Latin America and Caribbean 1,612 1,726 1,333 1,399 1,355 1,417 1,523 1,383 1,391 1,333 44 130,881 157,474 140,263 149,197 158,028 157,933 147,568 146,800' 142,555 140,263 China 762 634 620 537 554 586 542 639 689 662200 46 Taiwan 4,184 2,776 1,924 1,946 1,583 2,026 1,681 1,061 1,576 1,924 47 10,143 11,128 10,644 9,271 9,434 9,473 9,026 8,478 8,506 10,644 48 560 621 640 802 852 628 867 506 540 640 49 674 651 948 801 814 836 826 8%' 923 948 SO 1,136 813 773 777 738 785 698 688 758 773 51 90,149 111,300 92,075 107,753 114,663 114,973 106,543 106,369' 100,071 92,075 57 5,213 5,323 5,765 5,128 5,515 5,614 5,679 5,533' 5,533 5,765 53 Philippines 1,876 1,344 1,246 1,357 1,342 1,369 1,333 1,206 1,175 1,246 54 Thailand 848 1,140 1,562 1,279 1,242 1,245 1,279 1,444 1,523 1,562 55 Middle East oil-exporting countries5 6,213 10,149 10,964 10,876 12,318 10,657 10,430 11,098 10,947 10,964 56 Other Asia 9,122 11,594 13,102 8,668 8,971 9,741 8,663 8,883 10,314 13,102 57 5,718 5,890 5,435 5,787 5,567 5,567 5,544 5,601 5,705 5,435 58 507 502 377 469 421 449 430 411 383 377 59 Morocco 511 559 509 565 544 539 542 534 519 509 60 South Africa 1,681 1,628 1,525 1,573 1,560 1,571 1,594 1,576 1,726 1,525 61 17 16 16 21 20 19 20 19 19 16 67 Oil-exporting countries6 1,523 1,648 1,484 1,649 1,604 1,586 1,536 1,510 1,492 1,484 63 Other 1,479 1,537 1,525 1,511 1,418 1,403 1,422 1,551 1,566 1,525 64 Other countries 2,413 2,354 2,003 2,590 1,878 1,938 2,287 1,845' 1,841 2,003 65 Australia 1,520 1,781 1,518 1,712 1,422 1,304 1,863 1,416 1,483 1,518 66 All other 894 573 485 878 456 634 424 429' 358 485 67 Nonmonetary international and regional organizations 2,071 3,439 4,448 4,501 4,275 3,644 5,195 4,030 4,410 4,448 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

A62 International Statistics • April 1991 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 11998888 11998899 11999900 June July Aug. Sept. Oct.' Nov.' Dec." 1 Total 555555533333338888888,,,,,,,666666688888889999999 555555599999992222222,,,,,,,666666611111116666666 555555544444448888888,,,,,,,222222277777770000000 555555555555558888888,,,,,,,999999944444441111111''''''' 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 444444499999991111111,,,,,,,111111166666665555555 555555533333334444444,,,,,,,000000022222222222222 511,941 444444488888889999999,,,,,,,111111177777770000000 488,235 494,987 444444499999993333333,,,,,,,222222233333339999999 494,833 504,527 511,941 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 66666662222222,,,,,,,666666655555558888888 66666660000000,,,,,,,000000088888887777777 43,017 44444449999999,,,,,,,000000099999990000000 47,711 46,738 44444448888888,,,,,,,222222211111118888888 46,350 46,136 43,017 44 OOwwnn ffoorreeiiggnn ooffffiicceess 222222255555557777777,,,,,,,444444433333336666666 222222299999995555555,,,,,,,999999988888880000000 301,863 222222288888880000000,,,,,,,000000044444444444444 275,297 273,%7 222222277777778888888,,,,,,,888888877777771111111 281,049 290,978 301,863 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111122222229999999,,,,,,,444444422222225555555 111111133333334444444,,,,,,,888888877777770000000 119,504 111111122222221111111,,,,,,,888888822222227777777 128,436 137,784 111111122222224444444,,,,,,,999999988888888888888 124,887 121,355 119,504 66 DDeeppoossiittss 66666665555555,,,,,,,888888899999998888888 77777778888888,,,,,,,111111188888884444444 67,750 66666669999999,,,,,,,333333333333336666666 73,819 80,628 77777772222222,,,,,,,222222266666666666666 72,144 68,419 67,750 77 OOtthheerr 66666663333333,,,,,,,555555522222227777777 55555556666666,,,,,,,666666688888886666666 51,755 55555552222222,,,,,,,444444499999991111111 54,617 57,156 55555552222222,,,,,,,777777722222222222222 52,743 52,937 51,755 88 AAllll ootthheerr ffoorreeiiggnneerrss 44444441111111,,,,,,,666666644444446666666 44444443333333,,,,,,,000000088888884444444 47,556 33333338888888,,,,,,,222222200000009999999 36,791 36,499 44444441111111,,,,,,,111111166666662222222 42,547 46,058 47,556 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss33...... 44444447777777,,,,,,,555555522222224444444 55555558888888,,,,,,,555555599999994444444 55555559999999,,,,,,,111111100000000000000 66666665555555,,,,,,,777777700000002222222''''''' 8888888,,,,,,,222222288888889999999 11111113333333,,,,,,,000000011111119999999 11111115555555,,,,,,,777777700000008888888 11111114444444,,,,,,,777777700000007777777 11 Negotiable and readily transferable 22222225555555,,,,,,,777777700000000000000 33333330000000,,,,,,,999999988888883333333 22222227777777,,,,,,,444444455555551111111 33333333333333,,,,,,,777777799999991111111''''''' 12 Outstanding collections and other 11111113333333,,,,,,,555555533333335555555 11111114444444,,,,,,,555555599999992222222 11111115555555,,,,,,,999999944444440000000 11111117777777,,,,,,,222222200000003333333 13 MEMO: Customer liability on 11111119999999,,,,,,,5555555%%%%%%% 11111112222222,,,,,,,888888899999999999999 11111112222222,,,,,,,999999933333330000000 11111112222222,,,,,,,888888811111112222222 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States .... 45,565 45,675 n.a. 40,411 41,000 44,631 43,154 42,774 48,245 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 MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa 11998866 11998877 11998888 Dec. Mar. June Sept.' 1 Total 232,295 235,130 233,184 237,684 211,809 208,559 213,747 By borrower 2 Maturity of 1 year or less2 160,555 163,997 172,634 177,907 160,299 159,280 166,556 3 Foreign public borrowers 24,842 25,889 26,562 23,493 23,253 20,650 21,560 4 All other foreigners 135,714 138,108 146,071 154,415 137,046 138,630 144,9% 5 Maturity over 1 year 71,740 71,133 60,550 59,776 51,510 49,279 47,191 6 Foreign public borrowers 39,103 38,625 35,291 36,014 27,893 27,960 26,217 7 All other foreigners 32,637 32,507 25,259 23,762 23,617 21,320 20,974 By area Maturity of 1 year or less 8 Europe 61,784 59,027 55,909 53,912 48,550 49,421 51,579 9 Canada 5,895 5,680 6,282 5,909 5,698 5,754 5,520 10 Latin America and Caribbean 56,271 56,535 57,991 52,989 46,374 44,293 43,961 11 Asia 29,457 35,919 46,224 57,755 51,894 51,182 56,366 12 Africa 2,882 2,833 3,337 3,225 3,165 2,991 2,951 13 All other3 4,267 4,003 2,891 44,,111188 44,,661166 55,,663399 66,,117799 Maturity of over 1 year2 14 Europe 6,737 6,6% 4,666 4,121 4,389 4,201 4,426 15 Canada 1,925 2,661 1,922 2,353 2,712 2,819 3,033 16 Latin America and Caribbean 56,719 53,817 47,547 45,816 35,530 33,190 31,276 17 Asia 4,043 3,830 3,613 4,172 5,552 5,866 5,646 18 Africa 1,539 1,747 2,301 2,630 2,764 2,739 2,544 19 All other3 777 2,381 501 684 564 464 265 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

Nonbank-Reported Data A63 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 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 60.0 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 70 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 2n2 O So th u e th r W Af e r s ic te a r n Europe 3 1 . . 0 5 2 1 . . 9 6 2 1 . . 7 9 2 1 . . 4 3 2 1 . . 2 1 2 1 . . 1 1 2 1 . . 1 0 2. . 0 7 2 1 . . 0 0 1 1 . . 1 9 1 . . 7 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 76 Ecuador 2.2 1.9 1.8 1.7 1.6 1.5 1.5 1.3 1.2 1.1 1.1 77 Venezuela 8.7 8.1 7.9 7.9 7.9 7.5 7.4 7.0 6.1 6.0 6.0 78 Indonesia 2.5 1.9 1.8 1.7 1.7 1.9 2.0 2.0 2.1 2.0 2.3 79 Middle East countries 4.3 3.6 4.6 3.4 3.3 3.4 3.5 5.0 4.3 4.4 3.3 30 African countries 1.8 1.9 1.9 1.9 1.7 1.6 1.9 1.7 1.8 1.8 1.7 31 Non-OPEC developing countries 99.6 97.8 87.2 85.3 85.9 83.4 81.2 77.5 68.8 66.0 66.3 Latin America 3? Argentina 9.5 9.5 9.3 9.0 8.5 7.9 7.6 6.3 5.5 55..11 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 ..33 .3 .2 ..22 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 1.2 1.9 2.0 2.1 2.6 2.4 2.7 3.1 3.5 3.6 3.6 4? 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 ..55 .6 .5 ..44 .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 40.0 41.9 57 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

A64 International Statistics • April 1991 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 Total 25,587 28,302 32,938 38,400 36,530 38,413 38,554 39,474 44,555 2 Payable in dollars 21,749 22,785 27,320 33,312 31,669 33,569 34,265 34,962 39,429 3 Payable in foreign currencies 3,838 5,517 5,618 5,088 4,861 4,845 4,289 4,512 5,126 By type 4 Financial liabilities 12,133 1122,,442244 14,507 18,427 17,141 18,364 17,837 19,499 20,534 5 Payable in dollars 9,609 8,643 10,608 14,551 13,289 14,462 14,625 16,098 16,694 6 Payable in foreign currencies 2,524 3,781 3,900 3,875 3,852 3,902 3,213 3,401 3,840 7 Commercial liabilities 13,454 15,878 18,431 19,973 19,389 20,049 20,717 19,975 24,021 8 Trade payables 6,450 7,305 6,505 6,501 6,906 7,377 7,275 6,739 9,905 9 Advance receipts and other liabilities 7,004 8,573 11,926 13,472 12,483 12,672 13,441 13,237 14,116 10 Payable in dollars 12,140 14,142 16,712 18,760 18,380 19,107 19,640 18,864 22,735 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 12 Europe 7,917 8,320 9,962 12,575 11,213 11,607 10,960 12,026 11,527 13 Belgium-Luxembourg 270 213 289 357 308 340 333 347 350 14 France 661 382 359 257 242 258 217 156 503 15 Germany 368 551 699 618 592 521 482 676 735 16 Netherlands 542 866 880 835 855 946 900 934 948 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 7,579 19 Canada 399 360 388 626 575 573 476 345 357 20 Latin America and Caribbean 1,944 1,189 839 1,262 1,367 1,268 1,814 2,508 3,337 21 Bahamas 614 318 184 165 186 157 272 249 368 22 Bermuda 4 0 0 7 7 17 0 0 0 23 Brazil 32 25 0 0 0 0 0 0 0 24 British West Indies 1,146 778 645 661 743 635 1,061 1,717 2,352 25 Mexico 22 13 1 17 4 6 5 4 4 26 Venezuela 0 0 0 0 0 0 0 0 0 27 Asia 1,805 2,451 3,312 3,863 3,886 4,814 4,483 4,561 4,831 28 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 countries3 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 9,719 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 2,803 40 Canada 1,405 1,301 1,217 1,133 1,189 1,067 1,124 1,169 1,264 41 Latin America and Caribbean 924 864 1,090 1,673 1,086 1,187 1,304 1,277 1,553 42 Bahamas 32 18 49 34 27 41 37 22 18 43 Bermuda 156 168 286 388 305 308 516 412 371 44 Brazil 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 Asia 5,080 6,565 6,915 7,045 7,088 7,040 6,886 6,949 8,763 49 Japan 2,042 2,578 3,094 2,708 2,676 2,774 2,624 3,068 3,167 50 Middle East oil-exporting countries2,5 1,679 1,964 1,385 1,482 1,442 1,401 1,393 1,125 2,321 51 Africa 619 574 576 762 648 844 753 885 1,315 52 Oil-exporting countries3 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

Nonbank-Reported Data A65 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1989 1990 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998866 11998877 11998888 June Sept. Dec. Mar. June Sept. 1 36,265 30,964 34,035 34,420 32,088 31,437 29,708 31,468 30,846r 7 Payable in dollars 33,867 28,502 31,654 32,203 29,806 29,106 27,595 29,174 28,491' 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 26,273 20,363 21,869 21,920 19,135 17,689 16,481 17,975 16,527' 5 Deposits 19,916 14,894 15,643 16,500 12,154 10,400 10,436 9,877 10,258' 6 Payable in dollars 19,331 13,765 14,544 15,581 11,278 9,473 9,583 8,825 9,109' 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 6,269' 9 Payable in dollars 5,005 4,656 5,450 4,683 6,073 6,535 5,357 7,365 5,616r 10 Payable in foreign currencies 1,352 814 777 737 908 754 688 733 652 11 9,992 10,600 12,166 12,499 12,953 13,748 13,227 13,493 14,3^ 1? Trade receivables 8,783 9,535 11,091 11,068 11,472 12,140 11,635 11,807 12,506' 13 Advance payments and other claims 1,209 1,065 1,075 1,432 1,481 1,608 1,592 1,686 1,813' 14 Payable in dollars 9,530 10,081 11,660 11,939 12,455 13,099 12,655 12,985 13,765' 15 Payable in foreign currencies 462 519 505 560 498 650 573 508 554 By area or country Financial claims 16 10,744 9,531 10,279 8,919 7,528 7,040 66,,994499 99,,558877 77,,990055'' 17 Belgium-Luxembourg 41 7 18 161 166 28 22 126 27 18 138 332 203 176 173 153 198 141 143 19 116 102 120 149 120 192 505 93 97 ?0 151 350 348 297 292 303 315 332 315 71 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 6,926' 23 Canada 4,808 2,844 2,325 2,568 2,359 1,892 1,758 2,040 1,994 74 Latin America and Caribbean 9,291 7,012 8,160 9,319 8,315 7,590 6,921 5,431 5,666' 75 2,628 1,994 1,846 1,875 1,699 1,516 1,599 920 969' 76 6 7 19 33 33 7 4 3 12' 77 Brazil 86 63 47 78 70 224 79 84 70 78 6,078 4,433 5,763 6,923 6,125 5,431 4,824 4,027 4,215 79 174 172 151 114 105 94 152 153 158 30 Venezuela 21 19 21 31 36 20 21 20 23 31 1,317 879 844 995 826 831 763 815 832' 32 Japan 999 605 574 525 460 439 416 473 450' 33 Middle East oil-exporting countries2 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 other4 28 33 155 40 31 195 23 41 81 Commercial claims 37 3,725 4,180 5,181 5,302 5,429 6,168 66,,002266 66,,004411 66,,442277'' 38 Belgium-Luxembourg 133 178 189 205 220 241 219 207 189 39 431 650 672 775 829 956 958 908 1,14c 40 444 562 669 675 686 687 699 662 638' 41 164 133 212 413 3% 478 450 475 490 4? 217 185 344 231 222 305 270 235 30C 43 United Kingdom 999 1,073 1,324 1,372 1,398 1,572 1,690 1,586 1,675' 44 Canada 934 936 983 1,181 1,278 1,058 1,091 1,108 1,135' 45 Latin America and Caribbean 1,857 1,930 2,241 2,103 2,147 2,177 2,061 2,214 2,389' 46 28 19 36 13 10 57 22 17 25 47 193 170 230 238 271 323 243 284 340 48 234 226 299 315 239 292 231 233 252' 49 British West Indies 39 26 22 30 33 36 38 46 35 50 412 368 461 439 509 509 525 594 649 51 Venezuela 237 283 227 229 189 147 188 222 223 57 2,755 2,915 2,993 3,154 3,316 3,538 3,257 3,379 3,568' 53 881 1,158 946 999 1,176 1,184 1,061 1,046 54 Middle East oil-exporting countries2 563 450 453 434 410 515 432 414 403 55 500 401 435 408 399 418 425 390 372 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

A66 International Statistics • April 1991 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1990 1990 Transactions, and area or country 1989 1990 Jan.- Dec. June July Aug. Sept. Oct. Nov/ Dec." U.S. corporate securities STOCKS 1 Foreign purchases 214,061 173,035 173,035 18,211 17,447 20,653 8,812 11,636' 12,551 13,317 2 Foreign sales 204,114 188,336 188,336 18,584 16,080 21,959 11,318 15,437' 13,368 14,577 3 Net purchases, or sales (—) 9,946 -15,301 -15,301 -372 1,367 -1,306 -2,506 —3,801r -817 -1,261 4 Foreign countries 10,180 -15,372 -15,372 -336 1,315 -1,343 -2,452 —3,759r -812 -1,270 5 Europe 481 -8,579 -8,579 -590 -12 -1,379 -1,160 -1,415' -582 -489 6 France -708 -1,183 -1,183 32 -25 -175 -148 -159 -80 -49 7 Germany -830 -370 -370 -66 -41 -119 2 -87 -14 -144 8 Netherlands 79 -407 -407 -83 -30 -107 -48 -61 21 -46 9 Switzerland -3,277 -2,884 -2,884 -198 -170 -253 -126 -213 -169 -263 10 United Kingdom 3,691 -3,122 -3,122 -114 252 -637 -718 -688 -282 147 11 Canada -881 890 890 88 174 330 210 155 216 280 12 Latin America and Caribbean 3,042 -1,347 -1,347 -14 -90 -242 -218 -357 292 -282 13 Middle East" 3,531 -2,447 -2,447 -85 -36 187 -437 -558 -430 -251 14 Other Asia 3,577 -3,505 -3,505 243 1,056 -69 -712 -1,517' -420 -407 15 Japan 3,330 -2,907 -2,907 212 851 22 -737 -1,135' -194 -382 16 Africa 131 -60 -60 -7 13 16 1 -31 -5 -14 17 Other countries 299 -325 -325 30 211 -186 -135 -35 117 -108 18 Nonmonetary international and regional organizations -234 71 71 -37 52 37 -55 -42 -5 9 BONDS2 19 Foreign purchases 120,540 118,011 118,011 12,562 10,915 11,846 7,484 8,699' 11,230 9,335 20 Foreign sales 86,568 99,356 99,356 8,448 7,553 12,465 9,354 7,385' 7,728 7,892 21 Net purchases, or sales (—) 33,972 18,655 18,655 4,114 3,362 -618 -1,870 l,314r 3,502 1,443 22 Foreign countries 33,619 19,110 19,110 4,082 3,323 -588 -1,900 l,551r 3,506 1,446 23 Europe 19,823 11,672 11,672 3,378 1,9% 706 -819 667' 1,951 585 24 France 372 378 378 293 54 -40 -103 -74 24 44 25 Germany -238 -305 -305 80 33 172 3 -29 -59 -41 26 Netherlands 850 178 178 37 37 -15 -71 35 52 110 27 Switzerland -189 515 515 186 570 -346 0 -84 53 -34 28 United Kingdom 18,459 11,112 11,112 2,761 1,145 722 -275 371' 1,727 983 29 Canada 1,116 1,907 1,907 292 70 91 -87 127 237 -209 30 Latin America and Caribbean 3,686 4,222 4,222 578 273 -103 -208 214' 343 517 31 Middle East' -182 152 152 -120 13 -178 -65 -1(K -35 74 32 Other Asia 9,063 1,384 1,384 11 999 -986 -692 603' 1,035 479 33 Japan 6,331 1,007 1,007 -131 930 -632 -871 361 814 395 34 Africa 56 87 87 2 -4 -1 5 2 6 -9 35 Other countries 57 -314 -314 -59 -24 -118 -34 -53 -30 9 36 Nonmonetary international and regional organizations 353 -455 -455 32 39 -31 30 -237 -4 -2 Foreign securities 37 Stocks, net purchases, or sales (-)3 -13,097 -8,406 -8,406 -2,861 -1,135 -142 446 -314' 1,192 -1,716 38 Foreign purchases 109,789 122,486 122,486 11,041 11,425 12,360 7,522 9,277 10,022 7,323 39 Foreign sales3 122,886 130,892 130,892 13,902 12,559 12,502 7,076 9,591' 8,831 9,039 40 Bonds, net purchases, or sales (-) -6,049 -22,350 -22,350 -1,939 -400 48 -599 -2,830' 148 -4,302 41 Foreign purchases 234,215 313,576 313,576 25,762 23,367 29,826 25,746 35,254 32,759 32,798 42 Foreign sales 240,264 335,926 335,926 27,702 23,767 29,778 26,346 38,085' 32,611 37,101 43 Net purchases, or sales (-), of stocks and bonds — -19,145 -30,756 -30,756 -4,800 -1,535 -94 -153 —3,144r 1,339 -6,019 44 Foreign countries -19,178 -28,073 -28,073 -4,347 -1,564 -538 -428 -2,340' 1,314 -5,277 45 Europe -17,811 -8,189 -8,189 -3,645 -390 -1,303 -73 -910' 1,991 -935 46 Canada -4,180 -6,920 -6,920 -223 -328 167 -4 -880' -1,659 -219 47 Latin America and Caribbean 426 -8,787 -8,787 417 -222 -64 -401 229 283 -2,652 48 2,540 -3,816 -3,816 -1,082 -211 606 -323 -697 720 -1,572 49 Africa 93 -137 -137 8 -83 -8 12 4 -69 28 50 Other countries -246 -224 -224 178 -331 65 362 -87' 48 73 51 Nonmonetary international and regional organizations 33 -2,684 -2,684 -453 30 444 275 -804 25 -741 1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, ties sold abroad by U.S. corporations organized to finance direct investments Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). abroad. 2. Includes state and local government securities, and securities of U.S. 3. As a result of the merger of a U.S. and U.K. company in July 1989, the government agencies and corporations. Also includes issues of new debt securi- former stockholders of the U.S. company received $5,453 million in shares of the new combined U.K. company. This transaction is not reflected in the data above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Interest and Exchange Rates A67 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1990 1990 Country or area 1989 1990 J D an ec .- . June July Aug. Sept. Oct. Nov/ Dec.p Transactions, net purchases or sales (-) during period1 1 Estimated total2 54,198 19,760 19,760 3,554 5,488 4,609 936 -l,134r 5,936 6,473 2 Foreign countries2 52,2% 20,115 20,115 3,249 5,331 3,968 1,293 -l,107r 5,601 6,494 3 Europe2 36,286 18,791 18,791 2,587 3,643 -2,128 5,021 275 2,145 4,474 4 Belgium-Luxembourg 1,048 -16 -16 270 179 -395 -95 72 -67 -106 5 Germany2 7,904 5,750 5,750 -1,061 -1 1,424 633 581 1,677 575 6 Netherlands -1,141 1,012 1,012 313 1% 1,253 956 -454 -223 625 7 Sweden 693 1,156 1,156 -34 133 -266 -33 163 279 727 8 Switzerland2 1,098 146 146 -19 -799 -128 548 617 -6 238 9 United Kingdom 20,198 -2,159 -2,159 1,894 1,051 -3,776 1,599 -1,747 -1,581 210 10 Other Western Europe 6,508 12,880 12,880 1,223 2,884 -251 1,407 1,043 2,069 2,204 11 Eastern Europe -21 13 13 0 0 11 0 0 -5 0 12 Canada 698 -4,556 -4,556 367 1,418 1,177 -868 -637 -463 155 13 Latin America and Caribbean 459 15,788 15,788 914 1,934 1,319 -1,953 4,676 4,306 11,,555511 14 Venezuela 311 -50 -50 48 -1 0 -49 -1 49 11 15 Other Latin America and Caribbean -327 5,049 5,049 1,021 1,060 295 -1,157 591 %7 1,149 16 Netherlands Antilles 475 10,788 10,788 -154 874 1,023 -747 4,086 3,290 401 17 Asia 13,297 -11,064 -11,064 -1,086 -1,672 3,304 -1,751 -5,192r -936 -73 18 Japan 1,681 -14,881 -14,881 -469 161 2,376 -2,092 -4,059^ -1,154 -2,408 19 116 332 332 52 17 57 151 83 8 -3 20 All other 1,439 824 824 416 -9 239 692 -313 543 389 21 Nonmonetary international and regional organizations 1,902 -354 -354 305 158 641 -357 -27 335 -20 22 International 1,473 -150 -150 462 -25 444 -154 -87 209 -135 23 Latin America regional 231 -2 -2 -109 25 25 -75 -59 0 92 Memo 24 Foreign countries2 52,2% 20,115 20,115 3,249 5,331 3,968 1,293 — 1,107r 5,601 6,494 25 Official institutions 26,835 24,079 24,079 924 724 6,794 3,799 l,382r 4,766 7,862 26 Other foreign2 25,461 —3,965 -3,%5 2,325 4,607 -2,826 -2,506 -2,489r 835 -1,368 Oil-exporting countries 27 Middle East3 8,148 -383 -383 -439 -2,095 -365 241 -1,247 -878 1,014 28 Africa4 -1 0 -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

A68 International Statistics • April 1991 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per year Rate on Feb. 28, 1991 Rate on Feb. 28, 1991 Rate on Feb. 28, 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 10.50 July 1990 Belgium . 10.5 Nov. 1989 Germany, Fed. Rep. of, 6.50 Feb. 1991 Switzerland . 6.0 Oct. 1989 Canada.. 9.97 Feb. 1991 Italy 12.5 May 1990 United Kingdom' Denmark 9.50 Jan. 1991 Japan 6.0 Aug. 1990 Netherlands 7.75 Feb. 1991 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 Aug. Sept. Oct. Nov. Dec. Jan. Feb. 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

Interest and Exchange Rates A69 3.28 FOREIGN EXCHANGE RATES' Currency units per dollar Country/currency 1989 Sept. Oct. Nov. Dec. Jan. Feb. 1 Australia/dollar2 78.409 79.186 78.069 82.512 80.060 77.290 77.019 77.930 78.351 2 Austria/schilling 12.357 13.236 11.331 11.044 10.719 10.451 10.539 10.616 10.416 3 Belgium/franc 36.785 39.409 33.424 32.282 31.373 30.647 31.014 31.088 30.475 4 Canada/dollar 1.2306 1.1842 1.1668 1.1583 1.1600 1.1635 1.1603 1.1560 1.1549 5 China, P.R./yuan 3.7314 3.7673 4.7921 4.7342 4.7339 4.9714 5.2352 5.2352 5.2352 6 Denmark/krone 6.7412 7.3210 6.1899 5.9961 5.8117 5.6946 5.7735 5.8115 5.6953 7 Finland/markka 4.1933 4.2963 3.8300 3.7113 3.6187 3.5644 3.6341 3.6431 3.5941 8 France/franc 5.9595 6.3802 5.4467 5.2575 5.1032 5.0020 5.0895 5.1253 5.0398 9 Germany/deutsche mark. 1.7570 1.8808 1.6166 1.5701 1.5238 1.4857 1.4982 1.5091 1.4805 10 Greece/drachma 142.00 162.60 158.59 154.93 153.17 152.27 156.08 159.70 158.82 11 Hong Kong/dollar 7.8072 7.8008 7.7899 7.7647 7.7722 7.7951 7.8034 7.7950 7.7943 12 India/rupee 13.900 16.213 17.492 17.860 18.074 18.098 18.127 18.339 18.860 13 Ireland/punt2 152.49 141.80 165.76 170.91 176.04 180.18 177.77 168.68 179.81 14 Italy/lira 1,302.39 1,372.28 1,198.27 ,172.87 1,141.62 ,117.04 1,129.26 ,134.38 1,111.19 15 Japan/yen 128.17 138.07 145.00 138.44 129.59 129.22 133.89 133.70 130.54 16 Malaysia/ringgit 2.6190 2.7079 2.7057 2.6959 2.6995 2.6949 2.7030 2.7140 2.6%9 17 Netherlands/guilder. 1.9778 2.1219 1.8215 1.7699 1.7180 1.6761 1.6904 1.7015 1.6689 18 New Zealand/dollar .... 65.560 59.354 59.619 62.077 61.129 61.120 59.574 59.476 60.120 19 Norway/krone 6.5243 6.9131 6.2541 6.0735 5.8241 5.79% 5.8717 5.8993 5.7919 20 Portugal/escudo 144.27 157.53 142.70 139.18 134.41 130.87 132.82 134.43 130.45 21 Singapore/dollar 2.0133 1.9511 1.8134 1.7671 1.7257 1.7100 1.7275 1.7455 1.7180 22 South Africa/rand 2.2770 2.6214 2.5885 2.5712 2.5445 2.5247 2.5395 2.5643 2.5412 23 South Korea/won 734.52 674.29 710.64 717.87 717.76 717.03 718.58 720.83 723.97 24 Spain/peseta 116.53 118.44 101.96 98.49 95.59 94.07 95.75 95.08 92.61 25 Sri Lanka/rupee 31.820 35.947 40.078 39.953 40.285 40.355 40.244 40.300 40.598 26 Sweden/krona 6.1370 6.4559 5.9231 5.7663 5.6411 5.5633 5.6338 5.6345 5.5516 27 Switzerland/franc 1.4643 1.6369 1.3901 1.3069 1.2818 1.2569 1.2814 1.2714 1.2685 28 Taiwan/dollar 28.636 26.407 26.918 27.302 27.288 27.245 27.162 27.197 27.109 2 3 9 0 T U h n a i i t l e a d n d K /b in a g h d t om/pound'' 1 2 7 5 8 . . 3 1 1 3 2 1 2 6 5 3 . . 7 8 2 2 5 1 2 7 5 8 . . 6 4 0 1 9 1 2 8 5 7 . . 3 9 7 4 6 1 2 9 5 4 . . 1 5 3 6 0 1 2 9 5 6 . . 0 4 7 2 8 1 2 9 5 2 . . 2 1 0 9 8 1 2 9 5 3 . . 2 4 4 6 4 1 2 % 5 . . 4 14 1 1 MEMO 31 United States/dollar1... 92.72 98.60 89.09 86.10 83.43 82.12 83.35 83.51 82.12 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

71 Guide to Tabular Presentation, Statistical Releases, and Special Tables GUIDE TO TABULAR PRESENTATION Symbols and Abbreviations c Corrected 0 Calculated to be zero e Estimated n.a. Not available p Preliminary n.e.c. Not elsewhere classified r Revised (Notation appears on column heading when about IPCs Individuals, partnerships, and corporations half of the figures in that column are changed.) REITs Real estate investment trusts * Amounts insignificant in terms of the last decimal place RPs Repurchase agreements shown in the table (for example, less than 500,000 when SMSAs Standard metropolitan statistical areas the smallest unit given is millions) Cell not applicable General Information Minus signs are used to indicate (1) a decrease, (2) a negative tions of the Treasury. "State and local government" also infigure, or (3) an outflow. cludes municipalities, special districts, and other political "U.S. government securities" may include guaranteed issues subdivisions. of U.S. government agencies (the flow of funds figures also In some of the tables, details do not add to totals because of include not fully guaranteed issues) as well as direct obliga- rounding. STATISTICAL RELEASES—List Published Semiannually, with Latest BULLETIN Reference Issue Page Anticipated schedule of release dates for periodic releases December 1990 A92 SPECIAL TABLES-Published Irregularly, with Latest BULLETIN Reference Title and Date Issue Page Assets and liabilities of commercial banks December 31,1989 June 1990 All March 31,1990 January 1991 A72 June 30,1990 February 1991 A72 September 30,1990 March 1991 A72 Terms of lending at commercial banks February 1990 September 1990 A73 May 1990 December 1990 A72 August 1990 December 1990 All November 1990 April 1991 A73 Assets and liabilities of U.S. branches and agencies of foreign banks December 31,1989 August 1990 All 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 All Special table follows. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A73 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 5-9, 19901 A. Commercial and Industrial Loans WWeeiigghhtteedd Loan rate (percent) Loans MMoosstt Average aavveerraaggee made Partici- ccoommmmoonn Characteristic (tho lo u a s n a s n ds (tho s u iz sa e n ds mmaattuurriittyy22 Weighted Standard IInntteerr-- co u m nd m er it - pp lloo aatt aa ii nn oo ss nn pp bb rrii aa cc ss iinn ee gg of dollars) of dollars) Days effective3 error4 qq rr uu aa aa nn rr gg tt ee iill 55 ee (p m er e c n en t t) ((ppeerrcceenntt)) rate6 ALL BANKS 99999999999,,,,,,,,,,,666666666666666666666622222222222,,,,,,,,,,,888888888887777777777799999999999 5,132 * 8.% .11 8.58-9.14 76.6 4.3 Fed Funds 99999999999...........666666666661111111111155555555555...........555555555551111111111122222222222 973 18 9.21 .09 8.67-9.51 83.0 7.0 Other 77777777777,,,,,,,,,,,555555555551111111111177777777777,,,,,,,,,,,999999999999999999999999999999999 1,192 18 9.06 .10 8.67-9.48 81.2 7.4 Other 22222222222...........000000000009999999999977777777777...........555555555551111111111133333333333 587 18 9.75 .28 8.73-10.51 89.3 5.2 Domestic 5 Over one month and under a year 1111111111111111111111,,,,,,,,,,,111111111112222222222299999999999,,,,,,,,,,,222222222224444444444411111111111 160 145 10.14 .22 8.91-11.30 80.3 10.7 Prime 55555555555,,,,,,,,,,,000000000000000000000044444444444,,,,,,,,,,,666666666661111111111199999999999 172 112 9.85 .24 8.95-10.81 76.4 14.9 Other 66666666666,,,,,,,,,,,111111111112222222222244444444444,,,,,,,,,,,666666666662222222222222222222222 152 173 10.37 .26 8.81-11.52 83.4 7.4 Prime 8 Demand* 11111111111 22222222222 11111111111 ,,,,,,,,,,, ,,,,,,,,,,, 00000000000 88888888888 11111111111 22222222222 00000000000 11111111111 ,,,,,,,,,,, ,,,,,,,,,,, 66666666666 88888888888 66666666666 22222222222 22222222222 99999999999 3 1 5 9 3 7 * * 1 9 0 . . 3 5 3 3 . . 1 2 8 8 9. 8 2 . 5 5 - 2 1 - 1 9 . . 5 9 7 2 8 79 0 . . 2 7 5 3 . . 6 0 P O r t i h m e e r 99999999999,,,,,,,,,,,888888888881111111111111111111111,,,,,,,,,,,111111111116666666666688888888888 181 * 10.77 .18 10.25-11.63 81.0 6.2 Prime 11 Tola) short term 4444444444422222222222,,,,,,,,,,,222222222222222222222299999999999,,,,,,,,,,,444444444446666666666600000000000 299 59 9.77 .14 8.72-10.54 80.2 7.0 Prime 12 Fixed rate (thousands of dollars) 2222222222244444444444,,,,,,,,,,,111111111119999999999966666666666,,,,,,,,,,,111111111115555555555588888888888 563 32 9.21 .11 8.63-9.50 78.2 7.3 Other 13 1-24 111111111119999999999922222222222,,,,,,,,,,,999999999999999999999911111111111 7 129 12.54 .20 11.51-13.29 26.3 .0 Other 14 25-49 110000,,442299 33 128 11.51 .27 11.00-12.57 24.2 3.0 Prime 15 50-99 115588,,668899 62 132 11.64 .26 11.07-12.68 31.0 .5 Other 16 100-499 662,706 190 111 11.05 .35 10.33-12.01 51.0 12.5 Other 17 500-999 470,892 £>1 70 10.17 .22 9.11-11.02 77.8 5.4 Other 18 1000 and over 22222222,,,,666611110000,,,,444455550000 6,480 28 9.08 .11 8.60-9.38 80.1 7.4 Other 19 Floating rate (thousands of dollars)... 11118888,,,,000033333333,,,,333300002222 184 133 10.52 .20 9.21-11.57 82.8 6.5 Prime 20 1-24 444455557777,,,,888899997777 10 173 12.12 .13 11.46-12.75 76.2 .8 Prime 21 25-49 555544441111,,,,444433336666 34 152 11.88 .10 11.11-12.56 79.7 2.7 Prime 22 50-99 888866664444,,,,222200007777 66 175 11.62 .08 11.00-12.19 84.6 3.8 Prime 23 100-499 3333,,,,333322221111,,,,888888885555 197 158 11.35 .06 10.52-11.91 86.7 7.6 Prime 24 500-999 1111,,,,666666667777,,,,111144447777 652 201 11.06 .09 10.47-11.63 88.5 8.6 Prime 11111111,,,,111188880000,,,,777733331111 44,,333399 117 9.97 .20 8.70-10.93 81.1 6.4 Prime Months 26 Total iMg term 44,,447722,,776622 210 50 10.82 .15 10.00-11.63 79.3 11.7 Prime 27 Fixed rate (thousands of dollars) 11,,330033,,666644 119 62 10.46 .28 9.11-11.49 61.0 4.2 Other 28 1-99 118866,,222288 19 54 12.30 .18 11.49-13.24 14.0 6.1 Other 29 100-499 170,640 187 143 11.28 .21 10.80-11.91 40.7 4.5 None 30 500-999 21,984 661 50 11.10 .29 10.50-11.57 61.6 .0 Prime 999222444,,,888111111 4.085 49 9.92 .33 8.90-11.00 74.2 3.9 Domestic 32 Floating rate (thousands of dollars)... 333,,,111666999,,,000999888 305 45 10.96 .17 10.38-12.01 86.8 14.8 Prime 33 i_99 111999000,,,333444333 26 43 12.06 .12 11.30-12.75 58.7 4.1 Prime 34 100-499 444444222,,,555777888 215 60 11.25 .11 10.47-11.73 72.3 13.9 Prime 35 500-999 222555555,,,777111666 665 39 11.04 .10 10.47-11.57 84.7 15.1 Prime 222,,,222888000,,,444666222 33,,443333 42 10.80 .20 10.00-11.91 92.2 15.8 Prime Loan rate (percent) DDaayyss PPrriimmee rraattee1100 Effective3 Nominal9 LOANS MADE BELOW PRIME" 888888,,,,,,888888999999555555,,,,,,777777333333111111 7,298 * 8.82 8.45 10.00 75.8 5.0 888888,,,,,,444444555555555555,,,,,,111111555555888888 4,824 17 8.91 8.55 10.00 83.1 7.3 39 Over one month and under a year — 666666,,,,,,000000999999888888,,,,,,444444666666888888 617 1*3 7 9.04 8.73 10.08 86.8 12.3 333333,,,,,,999999000000777777,,,,,,333333000000888888 1,054 8.96 8.70 10.09 68.3 4.3 41 Total short term 222222777777,,,,,,333333555555666666,,,,,,666666666666555555 1,652 42 8.92 8.58 10.03 79.4 7.3 222222111111,,,,,,111111222222666666,,,,,,111111555555222222 2,139 28 8.90 8.55 10.01 79.0 7.9 43 Floating rate 666666,,,,,,222222333333000000,,,,,,555555111111333333 933 113 8.98 8.67 10.08 80.8 4.9 Months 11,,116622,,993388 360 50 9.15 8.84 10.16 86.7 12.8 559900,,555555 285 44 9.09 8.83 10.14 89.0 13.5 557722,,338833 4% 56 9.20 8.86 10.18 84.3 12.1 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Special Tables • April 1991 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 5-9, 1990'—Continued A. Commercial and Industrial Loans—Continued Weighted Loan rate (percent) Loans Amount of Average average made Partici- Characteristic (tho lo u a s n a s n ds (tho s u iz sa e nds maturity2 Weighted Standard Inter- co u m nd m e i r t p lo at a i n o s n of dollars) of dollars) average quartile ment (percent) Days effective3 range5 (percent) LARGE BANKS 1 Overnight7 7,771,693 6,515 9.04 .18 8.66-9.19 71.1 4.8 2 One month and under 6,896,330 4,161 17 9.19 .11 8.67-9.52 81.4 5.7 3 Fixed rate 5,195,998 5,350 18 9.07 .18 8.67-9.51 78.0 5.8 4 Floating rate 1,700,332 2,478 16 9.53 .34 8.69-10.47 91.9 5.6 5 Over one month and under a year . 6,181,414 1,125 124 9.79 .26 8.79-10.54 90.1 13.6 6 Fixed rate 2,936,542 3,256 87 9.75 .27 8.98-10.20 87.0 19.3 7 Floating rate 3,244,872 706 158 9.83 .41 8.64-10.81 93.0 8.4 8 Demand8 6,718,095 337 10.29 .31 8.94-11.46 73.5 6.1 9 Fixed rate 1,246,081 887 9.07 .29 8.41-9.45 81.7 4.6 10 Floating rate 5,472,014 296 10.56 .30 9.75-11.57 71.6 6.4 11 Total short term 27,567,532 976 43 9.55 8.70-10.47 78.5 12 Fixed rate (thousands of dollars) .. 17,150,314 3,836 22 9.17 8.67-9.45 76.7 7.6 13 1-24 6,533 10 112 11.47 10.79-12.00 33.9 .5 14 25-49 8,653 33 92 11.21 11.00-11.94 37.0 .8 15 50-99 13,839 66 83 10.68 10.38-11.50 54.9 1.5 16 100-499 146,842 230 53 10.06 9.09-11.00 69.2 1.9 17 500-999 224,448 664 41 9.85 9.11-10.52 75.7 7.8 18 1000 and over 16,749,999 7,159 22 9.15 8.67-9.42 76.8 7.6 19 Floating rate (thousands of dollars) 10,417,218 438 109 10.17 8.77-11.29 81.6 6.9 20 1-24 95,545 11 179 11.60 10.75-12.19 83.4 .6 21 25-49 125,306 34 162 11.53 10.75-12.13 89.9 1.1 22 50-99 251,836 67 158 11.42 10.75-12.00 90.8 2.3 23 100-499 1,089,944 201 160 11.12 10.47-11.63 89.3 4.5 24 500-999 628,414 663 161 10.84 10.47-11.50 91.8 9.7 25 1000 and over 8,226,173 5,184 102 9.91 8.68-11.02 79.4 7.3 Months 26 Total long term 2,702,411 886 10.57 9.42-11.57 92.1 12.1 27 Fixed rate (thousands of dollars) .. 471,544 1,072 9.60 8.36-10.% 89.0 4.5 28 1-99 7,483 26 11.57 10.69-12.46 38.5 2.5 29 100-499 13,547 245 10.30 9.73-10.51 60.7 14.4 30 500-999 13,449 704 11.08 10.47-11.44 71.9 .0 31 1000 and over 437,066 5,399 9.49 8.36-10.77 91.2 4.4 32 Floating rate (thousands of dollars) 2,230,867 855 10.78 10.00-11.85 92.8 13.8 33 1-99 36,922 38 11.86 11.02-12.55 79.4 7.2 34 100-499 221,859 231 11.24 10.47-11.85 83.7 11.5 35 500-999 175,639 669 11.11 10.47-11.73 86.7 18.6 36 1000 and over 1,796,447 4,309 10.67 10.00-11.63 94.8 13.7 Loan rate (percent) Days Prime rate10 Effective3 Nominal9 LOANS MADE BELOW PRIME 37 Overnight7 7,036,229 7,689 8.51 10.00 69.5 5.8 38 One month and under 6,037,689 6,204 16 8.52 10.00 80.3 5.7 39 Over one month and under a year 4,152,477 4,711 123 9.07 8.77 10.00 90.1 13.4 40 Demand8 2,576,793 2,749 8.79 8.57 10.00 55.8 3.5 41 Total short term 19,803,187 5,342 8.91 8.57 10.00 75.3 7.1 42 Fixed rate 15,123,677 5,780 21 8.93 8.58 10.00 75.3 8.1 43 Floating rate 4,679,510 4,292 100 8.84 8.56 10.00 75.3 3.7 Months 44 Total long term 773,271 2,779 42 8.84 8.59 10.00 94.6 45 Fixed rate 309,570 3,116 8.75 8.60 10.00 %.8 16.7 46 Floating rate 463,701 2,592 8.90 8.58 10.00 93.1 10.3 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A75 4.23—Continued A. Commercial and Industrial Loans—Continued Weighted Loan rate (percent) Loans Amount of Average average made Partici- Characteristic (th l o o u a s n a s n ds (tho s u iz sa e n ds maturity2 Weighted Standard Inter- co u m nd m e i r t p lo at a i n o s n of dollars) of dollars) average quartile ment (percent) Days effective3 range5 (percent) OTHER BANKS 1 Overnight7 1,891,186 2,740 8.63 8.39-8.86 99.5 2.1 2 One month and under 2,719,182 330 20 9.29 8.61-9.50 87.0 10.1 3 Fixed rate 2,322,001 435 19 9.05 8.57-9.46 88.5 11.2 4 Floating rate 397,181 137 23 10.68 9.33-11.58 78.0 3.9 5 Over one month and under a year. 4,947,827 77 172 10.58 9.08-11.76 68.0 7.1 6 Fixed rate 2,068,077 73 146 10.00 8.87-11.57 61.5 8.5 7 Floating rate 2,879,750 81 191 10.99 10.47-11.85 72.7 6.1 8 Demand8 5,103,734 128 10.85 10.25-11.63 90.2 5.0 9 Fixed rate 764,580 178 9.76 8.84-10.47 75.3 .4 10 Floating rate 4,339,154 122 11.04 10.47-11.63 92.9 5.8 11 Total short term 14,661,928 130 10.18 8.79-11.43 83.3 6.3 12 Fixed rate (thousands of dollars) .. 7,045,844 183 55 9.29 8.49-9.53 82.1 6.8 1 1 3 4 2 1 5 -2 -4 4 9 1 9 8 1 6 , , 7 4 7 5 6 9 3 6 3 1 1 2 2 9 9 1 1 1 2 . . 5 5 4 7 1 1 1 1 . . 0 5 7 7 - - 1 1 2 3 . . 5 3 7 1 2 23 6 . . 0 1 3. .0 3 15 50-99 144,850 62 134 11.73 11.30-12.75 28.7 .4 16 100-499 515,864 181 123 11.33 10.50-12.19 45.8 15.5 17 500-999 246,444 640 93 10.47 9.11-12.06 79.6 3.3 18 1000 and over 5,860,451 5,098 44 8.86 8.45-9.11 89.4 6.6 19 Floating rate (thousands of dollars) 7,616,084 102 170 11.00 10.47-11.80 84.5 5.8 20 1-24 362,352 9 173 12.26 11.57-12.75 74.3 .8 21 25-49 416,130 35 151 11.98 11.36-12.68 76.7 3.2 22 50-99 612,371 66 178 11.70 11.03-12.19 82.0 4.4 23 100-499 2,231,941 195 157 11.46 10.75-12.13 85.5 9.2 24 500-999 1,038,732 646 220 11.19 10.47-12.13 86.5 7.9 25 1000 and over 2,954,558 2,984 164 10.15 9.14-10.93 85.8 3.9 Months 26 Total long term 1,770,351 91 11.19 10.47-11.91 59.7 27 Fixed rate (thousands of dollars) .. 832,120 79 71 10.95 9.96-11.63 45.1 4.1 28 1-99 178,746 19 54 12.33 11.49-13.24 13.0 6.3 29 100-499 157,094 183 150 11.37 11.02-11.91 39.0 3.6 30 500-999 8,535 602 43 11.14 10.57-11.57 45.4 .0 31 1000 and over 487,745 3,354 53 10.31 9.11-11.35 58.9 3.4 32 Floating rate (thousands of dollars) 938,231 121 58 11.40 10.52-12.13 72.5 17.2 33 1-99 153,421 24 46 12.11 11.30-12.75 53.7 3.4 34 100-499 220,719 201 80 11.27 10.47-11.63 60.8 16.4 35 500-999 80,076 658 45 10.90 10.50-11.57 80.3 7.4 36 1000 and over 484,015 1,957 54 11.31 10.52-12.19 82.6 23.5 Loan rate (percent) Days Prime rate10 Effective3 Nominal9 LOANS MADE BELOW PRIME" 37 Overnight7 1,859,502 6,121 8.59 8.24 10.00 99.6 2.2 38 One month and under 2,417,469 3,101 19 8.97 8.61 10.01 90.0 11.4 39 Over one month and under a year 1,945,991 216 168 8.98 8.65 10.24 79.7 9.9 40 Demand8 1,330,516 481 9.30 8.95 10.26 92.4 5.7 41 Total short term 7,553,478 588 60 8.94 8.59 10.11 90.2 7.7 42 Fixed rate 6,002,475 827 45 8.82 8.48 10.05 88.3 7.5 43 Floating rate 1,551,003 278 167 9.39 9.01 10.33 97.3 8.6 Months 44 Total long term 389,666 132 66 9.34 10.48 71.0 12.7 45 Fixed rate — 280,985 142 42 9.47 9.07 10.30 80.5 9.9 46 Floating rate .. 108,682 111 129 10.50 10.03 10.92 46.6 19.9 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Special Tables • April 1991 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 5-9, 1990—Continued B. Loans to Farmers12 Size class of loans (thousands) Characteristic All sizes $1-9 $10-24 $25-49 $50-99 $100-249 an $ d 2 o 50 v er ALL BANKS 1 Amount of loans (thousands of dollars) $ 1,949,950 $ 126,966 $ 157,314 $ 190,582 $ 227,141 $ 220,261 $ 1,027,687 2 Number of loans 55,958 34,346 10,440 5,373 3,351 1,544 905 3 Weighted average maturity (months)2 8.5 6.5 8.9 7.9 14.2 27.4 3.5 4 Weighted average interest rate (percent)3 11.51 12.53 12.31 12.15 11.88 11.67 11.03 3 Standard error4 .67 .22 .38 .32 .19 .30 1.25 6 Interquartile range 10.52-12.19 12.01-13.01 11.63-12.89 11.57-12.75 11.35-12.47 11.00-12.19 10.52-11.85 By purpose of loan 7 Feeder livestock 11.62 12.56 12.22 12.01 11.95 11.61 11.40 8 Other livestock 12.23 12.83 12.41 12.49 12.18 12.24 11.85 9 Other current operating expenses 11.74 12.45 12.32 12.27 11.60 11.46 11.09 10 Farm machinery and equipment 12.35 12.67 12.53 12.28 * * * IT Farm real estate 11.50 12.51 11.82 11.50 11.29 * * 12 Other 10.78 12.51 12.47 12.21 12.16 11.31 10.52 Percentage of amount of loans 13 With floating rates 58.5 54.4 48.6 55.3 57.9 85.7 55.4 14 Made under commitment 63.0 51.8 54.4 60.3 53.3 69.6 66.9 By purpose of loan 15 Feeder livestock 33.2 10.5 17.2 32.2 41.5 38.7 35.5 16 Other livestock 8.4 12.5 13.5 8.3 16.1 13.8 4.3 17 Other current operating expenses 25.7 64.2 45.7 38.1 17.8 27.5 17.0 18 Farm machinery and equipment 2.3 6.6 10.0 5.9 * * * 19 Farm real estate 6.6 1.7 6.8 6.1 9.1 * * 20 Other 23.9 4.6 6.9 9.4 12.2 8.6 37.4 LARGE FARM LENDERS12 I Amount of loans (thousands of dollars) $ 1,192,264 $ 15,505 $ 31,472 $ 44,314 $ 61,036 $ 110,503 $ 929,429 2 Number of loans 9,480 3,850 2,091 1,260 903 721 654 3 Weighted average maturity (months) 3.7 7.1 7.0 7.9 8.0 7.0 2.6 4 Weighted average interest rate (percent)3 11.11 12.17 11.92 11.76 11.68 11.33 10.98 Standard error .65 .21 .38 .28 .10 .21 1.12 6 Interquartile range5 10.52-11.85 11.58-12.75 11.39-12.47 11.20-12.19 11.07-12.19 10.66-11.76 10.52-11.57 By purpose of loan 7 Feeder livestock 11.48 12.17 11.94 11.88 11.72 11.51 11.42 8 Other livestock 11.39 12.17 11.87 11.48 11.91 11.26 * 9 Other current operating expenses 11.21 12.19 11.95 11.72 11.59 11.13 11.00 10 Farm machinery and equipment 12.13 12.69 12.17 * * * * 11 Farm real estate 11.60 11.70 11.89 11.70 * * * 12 Other 10.59 12.09 11.78 11.66 11.39 11.18 10.52 Percentage of amount of loans 13 With floating rates 61.4 83.5 84.4 90.7 87.7 95.0 53.2 14 Made under commitment 68.9 80.8 77.8 81.6 75.7 82.9 65.7 By purpose of loan 15 Feeder livestock 34.7 16.0 21.6 34.7 41.9 41.1 34.2 16 Other livestock 2.0 2.8 4.4 2.5 6.6 7.0 * 17 Other current operating expenses 22.8 59.1 50.9 40.0 30.9 38.4 17.9 18 Farm machinery and equipment .4 4.8 2.6 * * * * 19 Farm real estate 5.3 4.0 6.9 7.8 * * * 20 Other 34.8 13.4 13.5 13.7 10.8 10.4 41.3 OTHER BANKS12 1 Amount of loans (thousands of dollars) $ 757,686 $ 111,461 $ 125,843 $ 146,268 $ 166,106 $ 109,752 $ 98,257 2 Number of loans 46,479 30,496 8,348 4,113 2,448 823 251 3 Weighted average maturity (months)2 14.4 6.4 9.2 7.9 15.8 44.2 12.8 4 Weighted average interest rate (percent)3 12.14 12.58 12.41 12.27 11.96 12.01 11.54 5 Standard error .10 .05 .04 .14 .16 .21 .52 6 Interquartile range5 11.51-12.75 12.08-13.03 11.83-12.97 11.63-12.86 11.46-12.47 11.27-12.66 10.72-12.19 By purpose of loan 7 Feeder livestock 11.88 12.65 12.31 12.06 12.04 11.73 * 8 Other livestock 12.37 12.85 12.45 12.57 12.22 * * 9 Other current operating expenses 12.37 12.48 12.42 12.44 11.60 * * 10 Farm machinery and equipment 12.37 12.67 12.55 12.31 * * * 11 Farm real estate 11.40 12.84 11.81 * * * * 12 Other 12.38 12.75 12.92 12.49 * * * For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets All 4.23—Continued B. Loans to Farmers12—Continued Size class of loans (thousands) Characteristic All sizes $1-9 $10-24 $25-49 $50-99 $100-249 $250 and over Percentage of amount of loans 13 With floating rates 53.8 50.4 39.6 44.6 47.0 76.4 14 Made under commitment 53.6 47.7 48.5 53.8 45.1 56.2 * By purpose of loan 15 Feeder livestock 30.7 9.7 16.1 31.5 41.4 36.2 * 16 Other livestock 18.4 13.9 15.8 10.0 19.6 * * 17 Other current operating expenses 30.3 64.9 44.4 37.6 13.0 * * 18 Farm machinery and equipment 5.2 6.9 11.8 7.3 * # * 19 Farm real estate 8.7 1.3 6.7 * * * * 20 Other 6.7 3.4 5.2 8.1 * * * •Fewer than 10 sample loans. 1. The survev of terms of bank lending to business collects data on gross loan volume of loans. Base pricing rates include the prime rate (sometimes referred to extensions made during the first full business week in the mid-montn of each as a bank's "basic" or "reference" rate); the federal funds rate; domestic money quarter by a sample of 340 commercial banks of all sizes. A sample of 250 banks market rates other than the federal funds rate; foreign money market rates; and reports loans to farmers. The sample data are blown up to estimate the lending other base rates not included in the foregoing classifications. terms at all insured commercial banks during that week. The estimated terms of 7. Overnight loans are loans that mature on the following business day. bank lending are not intended for use in collecting the terms of loans extended 8. Demand loans have no stated date of maturity. over the entire quarter or residing in the portfolios of those banks. Mortgage 9. Nominal (not compounded) annual interest rates are calculated from survey loans, purchased loans, foreign loans, and loans of less than $1,000 are excluded data on the stated rate and other terms of the loan and weighted by loan size. from the survey. 10. The prime rate reported by each bank is weighted by the volume of loans As of Dec. 31, 1989, assets of most of the large banks were at least $7.0 billion. extended and then averaged. For all insured banks total assets averaged $250 million. 11. The proportion of loans made at rates below prime may vary substantially 2. Average maturities are weighted by loan size and exclude demand loans. from the proportion of such loans outstanding in banks' portfolios. 3. Effective (compounded) annual interest rates are calculated from the stated 12. Among banks reporting loans to farmers (Table B), most "large banks" rate and other terms of the loan and weighted by loan size. (survey strata 1 to 2) had over $20 million in farm loans, and most "other banks" 4. The chances are about two out of three that the average rate shown would (survey strata 3 to 5) had farm loans below $20 million. differ by less than this amount from the average rate that would be found by a The survey of terms of bank lending to farmers now includes loans secured by complete survey of lending at all banks. farm real estate. In addition, the categories describing the purpose of farm loans 5. The interquartile range shows the interest rate range that encompasses the have now been expanded to include "purchase or improve farm real estate." In middle 50 percent of the total dollar amount of loans made. previous surveys, the purpose of such loans was reported as "other." 6. The most common base rate is that rate used to price the largest dollar Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

79 JOHN P. LAWARE DAVID W. MULLINS, JR. 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. RADEBAUOH, 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

80 Federal Reserve Bulletin • April 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. LAWARE 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 STEPANLAN, 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. KORSVK, Associate Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

81 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 GEOROE 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

82 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 Settlement Costs Elsewhere, $35.00 per year or $.80 each. A Consumer's Guide to Mortgage Refinancing THE FEDERAL RESERVE ACT and other statutory provisions Home Mortgages: Understanding the Process and Your Rights affecting the Federal Reserve System, as amended through Making Deposits: When Will Your Money Be Available? August 1990. 646 pp. $10.00. When Your Home is on the Line: What You Should Know About REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL Home Equity Lines of Credit RESERVE SYSTEM. ANNUAL PERCENTAGE RATE TABLES (Truth in Lending-Regulation Z) Vol. / (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

83 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

84 Index to Statistical Tables References are to pages A3-A75 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Demand deposits Agricultural loans, commercial banks, 19,20 Banks, by classes, 18-21 Assets and liabilities (See also Foreigners) Ownership by individuals, partnerships, and corporations, 21 Banks, by classes, 18-20 Turnover, 15 Domestic finance companies, 35 Depository institutions Federal Reserve Banks, 10 Reserve requirements, 8 Financial institutions, 25 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 Consumer installment credit, 38, 39 Federal Reserve Banks, 4,10 Production, 48,49 Turnover, 15 Discount rates at Reserve Banks and at foreign central banks and foreign countries (See Interest rates) BANKERS acceptances, 9,22, 23 Discounts and advances by Reserve Banks (See Loans) Bankers balances, 18-20. (See also Foreigners) Dividends, corporate, 34 Bonds (See also U.S. government securities) New issues, 33 EMPLOYMENT, 46 Rates, 23 Eurodollars, 23 Branch banks, 21,56 Business activity, nonfinancial, 45 FARM mortgage loans, 37 Business expenditures on new plant and equipment, 34 Federal agency obligations, 4,9,10,11, 30, 31 Business loans (See Commercial and industrial loans) Federal credit agencies, 32 Federal finance CAPACITY utilization, 47 Debt subject to statutory limitation, and types and ownership Capital accounts of gross debt, 29 Banks, by classes, 18 Receipts and outlays, 27,28 Federal Reserve Banks, 10 Treasury financing of surplus, or deficit, 27 Central banks, discount rates, 68 Treasury operating balance, 27 Certificates of deposit, 23 Federal Financing Bank, 27, 32 Commercial and industrial loans Federal funds, 6,17,19, 20,21,23,27 Commercial banks, 16, 19, 75 Federal Home Loan Banks, 32 Weekly reporting banks, 19-21 Federal Home Loan Mortgage Corporation, 32, 36, 37 Commercial banks Federal Housing Administration, 32,36, 37 Assets and liabilities, 18-20 Federal Land Banks, 37 Commercial and industrial loans, 16,18,19,20, 21, 75 Federal National Mortgage Association, 32, 36, 37 Consumer loans held, by type and terms, 38, 39,75 Federal Reserve Banks Loans sold outright, 19 Condition statement, 10 Nondeposit funds, 17 Discount rates (See Interest rates) Real estate mortgages held, by holder and property, 37 U.S. government securities held, 4, 10, 11, 29 Terms of lending, 71-75 Federal Reserve credit, 4, 5,10,11 Time and savings deposits, 3 Federal Reserve notes, 10 Commercial paper, 22,23, 35 Federal Savings and Loan Insurance Corporation insured Condition statements (See Assets and liabilities) institutions, 25 Construction, 45, 50 Federally sponsored credit agencies, 32 Consumer installment credit, 38, 39 Finance companies Consumer prices, 45,47 Assets and liabilities, 35 Consumption expenditures, 52, 53 Business credit, 35 Corporations Loans, 38, 39 Nonfinancial, assets and liabilities, 34 Paper, 22,23 Profits and their distribution, 34 Financial institutions Security issues, 33, 66 Loans to, 19,20,21 Cost of living (See Consumer prices) Selected assets and liabilities, 25 Credit unions, 28, 38. (See also Thrift institutions) Float, 4 Currency and coin, 18 Flow of funds, 40, 42,43, 44 Currency in circulation, 4,13 Foreign banks, assets and liabilities of U.S. branches and Customer credit, stock market, 24 agencies, 21 Foreign currency operations, 10 Foreign deposits in U.S. banks, 4,10,19, 20 DEBITS to deposit accounts, 14 Foreign exchange rates, 69 Debt (See specific types of debt or securities) Foreign trade, 55 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

85 Foreigners REAL estate loans Claims on, 56, 58, 61, 62,63, 65 Banks, by classes, 16,19,20, 37 Liabilities to, 20, 55, 56, 58, 59, 64, 66, 67 Financial institutions, 25 Terms, yields, and activity, 36 GOLD Type of holder and property mortgaged, 37 Certificate account, 10 Repurchase agreements, 6,17,19,20,21 Stock, 4, 55 Reserve requirements, 8 Government National Mortgage Association, 32, 36, 37 Reserves Gross national product, 52 Commercial banks, 18 Depository institutions, 3,4, 5, 12 HOUSING, new and existing units, 50 Federal Reserve Banks, 10 U.S. reserve assets, 55 INCOME, personal and national, 45, 52, 53 Residential mortgage loans, 36 Industrial production, 45,48 Retail credit and retail sales, 38, 39,45 Installment loans, 38, 39 Insurance companies, 25, 29, 37 SAVING Interest rates Flow of funds, 40, 42, 43,44 Bonds, 23 National income accounts, 52 Commercial banks, 71-75 Savings and loan associations, 25, 37, 38, 40. (See also Thrift Consumer installment credit, 39 institutions) Federal Reserve Banks, 7 Savings banks, 25, 37, 38 Foreign central banks and foreign countries, 68 Savings deposits (See Time and savings deposits) Money and capital markets, 23 Securities (See also specific types) Mortgages, 36 Federal and federally sponsored credit agencies, 32 Prime rate, 22 Foreign transactions, 66 International capital transactions of United States, 54-68 New issues, 33 International organizations, 58, 59, 61, 64, 65 Prices, 24 Inventories, 52 Special drawing rights, 4,10, 54, 55 Investment companies, issues and assets, 34 State and local governments Investments (See also specific types) Deposits, 19,20 Banks, by classes, 18,19,20,21,25 Holdings of U.S. government securities, 29 Commercial banks, 3,16,18-20, 37 New security issues, 33 Federal Reserve Banks, 10,11 Ownership of securities issued by, 19,20, 25 Financial institutions, 25, 37 Rates on securities, 23 Stock market, selected statistics, 24 LABOR force, 46 Stocks (See also Securities) Life insurance companies (See Insurance companies) New issues, 33 Loans (See also specific types) Prices, 24 Banks, by classes, 18-20 Commercial banks, 3,16, 18-20 Student Loan Marketing Association, 32 Federal Reserve Banks, 4, 5, 7, 10, 11 Financial institutions, 25, 37 Insured or guaranteed by United States, 36, 37 TAX receipts, federal, 28 Thrift institutions, 3. (See also Credit unions and Savings and MANUFACTURING loan associations) Capacity utilization, 47 Time and savings deposits, 3, 13, 17, 18, 19, 20, 21 Production, 47, 49 Trade, foreign, 55 Margin requirements, 24 Treasury cash, Treasury currency, 4 Member banks (See also Depository institutions) Treasury deposits, 4, 10,27 Federal funds and repurchase agreements, 6 Treasury operating balance, 27 Reserve requirements, 8 UNEMPLOYMENT, 46 Mining production, 49 U.S. government balances Mobile homes shipped, 50 Commercial bank holdings, 18,19,20 Monetary and credit aggregates, 3,12 Treasury deposits at Reserve Banks, 4,10, 27 Money and capital market rates, 23 U.S. government securities Money stock measures and components, 3,13 Bank holdings, 18-20,21,29 Mortgages (See Real estate loans) Dealer transactions, positions, and financing, 31 Mutual funds, 34 Federal Reserve Bank holdings, 4,10, 11, 29 Mutual savings banks (See Thrift institutions) Foreign and international holdings and transactions, 10, 29, 67 NATIONAL defense outlays, 28 Open market transactions, 9 National income, 52 Outstanding, by type and holder, 25,29 Rates, 23 OPEN market transactions, 9 U.S. international transactions, 54-68 Utilities, production, 49 PERSONAL income, 53 Prices VETERANS Administration, 36, 37 Consumer and producer, 45, 51 Stock market, 24 Prime rate, 22 WEEKLY reporting banks, 19-21 Producer prices, 45, 51 Wholesale (producer) prices, 45, 51 Production, 45,48 Profits, corporate, 34 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

86 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.Lee Hoskins A. William Reynolds William H. Hendricks Cincinnati 45201 Kate Ireland Charles A. Cerino1 Pittsburgh 15230 Robert P. Bozzone Harold J. Swart1 RICHMOND* 23219 Anne Marie Whittemore Robert P. Black Henry J. Faison Jimmie R. Monhollon Baltimore 21203 John R. Hardesty, Jr. Ronald B. Duncan1 Charlotte 28230 Anne M. Allen Albert D. Tinkelenberg1 Culpeper Communications John G. Stoides1 and Records Center 22701 ATLANTA 30303 Larry L. Prince Robert P. Forrestal Edwin A. Huston Jack Guynn Donald E. Nelson1 Birmingham 35283 Roy D.Terry FredR. Herr1 Jacksonville 32231 Hugh H. Brown James D. Hawkins1 Miami 33152 Dorothy C. Weaver James T. Curry ID 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 KentM. 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, IE1 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. Digitized for FR1A. SSEenRio r Vice President. http://fraser.stlo2u. isEfxeedcu.otirvge/ V ice President. Federal Reserve Bank of St. Louis

87 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories aMMK ii ii ii ALASKA WWSSiiUUPPSSllSSSSlliiSSMMII // 11 11 © y yp # •AN LEGEND ~~ Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities Boundaries of Federal Reserve Branch * Federal Reserve Branch Cities Territories Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis