Federal Reserve Bulletin, 1991-05

VOLUME 77 • NUMBER 5 • MAY 1991 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 287 INTERNATIONAL TRANSACTIONS nomic Committee of the Congress, March IN 1990 13, 1991. In 1990, for the third year in a row, the U.S. 311 ANNOUNCEMENTS current account deficit narrowed, falling slightly below $100 billion. The merchan- Policy to reduce impediments to lending by dise trade deficit declined despite a sharp banks and thrift institutions to creditworthy increase in the value of oil imports, and the borrowers. surplus on other current account items, Revisions to Regulation P. such as services and investment income, increased. Proposed enhancements to certain Federal Reserve Bank services and proposed new services related to checks not collected 297 INDUSTRIAL PRODUCTION through the Federal Reserve. Industrial production fell 0.8 percent in Changes in Board staff. February after declines of 1.1 percent and 0.5 percent respectively in December and Publication of 77 th Annual Report, 1990. January. Total industrial capacity utiliza- Publication of Annual Statistical Digest, tion fell 0.8 percentage point in February to 1980-89. 79.1 percent, its lowest level since late 1986. 313 RECORD OF POLICY ACTIONS OF THE FEDERAL OPEN MARKET COMMITTEE 300 STATEMENTS TO THE CONGRESS At its meeting on February 5-6, 1991, the Alan Greenspan, Chairman, Board of Gov- Committee accepted the ranges for 1991 ernors, discusses some of the most critical that it had established on a tentative basis in considerations affecting the outlook for the July 1990. The latter ranges included expaneconomy and the formulation of monetary sion of 2Vi percent to 6V2 percent for M2 policy and some budgetary issues, and says and 1 percent to 5 percent for M3, measured that it is not yet clear whether further from the fourth quarter of 1990 to the fourth adjustments to policy will be required to quarter of 1991. The monitoring range for foster an upturn in output and employment, growth of total domestic nonfinancial debt before the House Committee on Ways and was set at 4V2 percent to 8V2 percent for Means, March 6, 1991. 1991. In keeping with the Committee's usual procedures under the Humphrey- 305 Chairman Greenspan again discusses mon- Hawkins Act, the ranges would be reetary policy and budgetary issues and says viewed at midyear, or sooner if deemed that the budget accord, on the whole, pro- necessary, in light of the behavior of the vides a useful framework for conducting aggregates and ongoing economic and fifiscal policy, including sufficient flexibility nancial developments. for specific tax and spending policies to be With regard to the intermeeting period altered to improve economic incentives or ahead, the members adopted a directive to reset priorities, before the Joint Eco- that called for maintaining the existing de- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

gree of pressure on reserve positions. The AI FINANCIAL AND BUSINESS STATISTICS directive gave special weight to potential These tables reflect data available as of developments that might require some eas- March 27, 1991. ing during the intermeeting period. Accordingly, slightly greater reserve restraint might A3 Domestic Financial Statistics be acceptable during the intermeeting period A46 Domestic Nonfinancial Statistics or somewhat lesser reserve restraint would A55 International Statistics be acceptable depending on progress toward price stability, the strength of the business All GUIDE TO TABULAR PRESENTATION, expansion, the behavior of the monetary STATISTICAL RELEASES, AND SPECIAL aggregates, and developments in foreign exchange and domestic financial markets. The TABLES reserve conditions contemplated at this meeting were expected to be consistent with A78 BOARD OF GOVERNORS AND STAFF some pickup in the growth of both M2 and M3 to annual rates of around 3V2 percent to A80 FEDERAL OPEN MARKET COMMITTEE 4 percent over the three-month period from AND STAFF; ADVISORY COUNCILS December to March. 323 LEGAL DEVELOPMENTS A82 FEDERAL RESERVE BOARD PUBLICATIONS Various bank holding company, bank service corporation, and bank merger orders; A84 INDEX TO STATISTICAL TABLES and pending cases. 359 DIRECTORS OF FEDERAL RESERVE A86 FEDERAL RESERVE BANKS, BANKS AND BRANCHES BRANCHES, AND OFFICES List of Directors by Federal Reserve District. A87 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1990 Lois Stekler, of the Board's Division of Interna- statistical discrepancy in the U.S. international tional Finance, prepared this article. transactions accounts rose to a record $73 billion. In 1990, for the third year in a row, the U.S. current account deficit narrowed, falling slightly INFLUENCES ON U.S. INTERNATIONAL below $100 billion. The merchandise trade deficit TRANSACTIONS declined despite a sharp increase in the value of oil imports. In addition, the surplus on other U.S. international transactions in 1990 were current account items, such as services and shaped to a considerable extent by certain underinvestment income, increased (chart 1). lying economic factors. Perhaps most important Changes in rates of economic growth in the were changes in rates of economic growth in the United States and abroad, oil price develop- United States and abroad and changes in the ments, and government transfers associated with price competitiveness of U.S. products. During the crisis in the Persian Gulf heavily influenced the latter part of the year, Iraq's invasion of the quarterly pattern of adjustment in the current Kuwait and the subsequent threat of military account during 1990. The fluctuations in U.S. conflict in the Persian Gulf produced additional price competitiveness resulting from the appre- effects on U.S. international transactions. Oil ciation of the dollar against the currencies of import prices rose, and foreign profits of U.S. oil several major trading partners during 1989 and its companies increased. Military exports and imsubsequent depreciation also influenced the pat- ports expanded, foreign governments made tern of trade during 1990. transfers to the U.S. government to help defray Although the U.S. current account deficit nar- the costs of Desert Shield, and the U.S. governrowed in 1990, it remained substantial. Much of ment forgave Egyptian debt related to earlier the large net capital inflow that was necessarily military sales. Also, foreign demand for U.S. the counterpart of the deficit did not show up in currency grew. the recorded data, however. As a result, the 1. U.S. external balances Relative Growth Rates In 1990, U.S. economic growth slowed noticeably, and by the fourth quarter the economy slipped into recession (table 1). In comparison with the fourth quarter of 1989, little real growth occurred in consumer spending or in producers' durable equipment expenditures (excluding computers). The economic slowdown tended to depress the growth of U.S. demand for imported goods and services and to reduce the profits earned by foreign direct investors in the United States. Economic growth in major U.S. export mar- The shaded areas represent the net of unilateral transfers, services kets abroad also slowed on average in 1990, transactions, and investment income. though not as sharply as U.S. growth did (table SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S. international transactions accounts. 1). The slowdown of growth abroad affected U.S. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

288 Federal Reserve Bulletin • May 1991 1. Growth of real GNP or GDP, selected countries, 1988-90 Percentage change at an annual rate, year over year except as noted 1990, quarter over quarter 1990 Q1 Q2 Q3 Q4 4.5 .9 1.7 .4 1.4 -1.8 4.0 3.3 2.1e 3.1e .9® 1.3® .1® 4.4 3.3 2.3 4.4 .4 1.0 -1.3 Other industrial countries3 3.2 3.8 1.5 .7 .9 1.4 1.8 Developing countries' ... 3.4 3.0 1.9* n.a. n.a. n.a. nn..aa.. 1. The GNP for foreign countries is the weighted average for the Group Finland, Greece, Ireland, New Zealand, Norway, Portugal, South Africa, of Ten (G-10) countries, other industrial countries, and developing countries. Spain, and Turkey. The weights are based on U.S. bilateral nonagricultural exports. 4. The GDP (not GNP) for developing countries is a weighted average for 2. The G-10 countries, excluding the United States, are Belgium-Luxem- the regions of Asia, Africa, the Middle East, the Western Hemisphere, and bourg, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Mexico, Switzerland, and the United Kingdom. n.a. Not available. 3. The other industrial countries include Australia, Austria, Denmark, 'Estimated using preliminary data, when available. exports of goods and services and the profits 1980s, a trend that suggests improved U.S. price earned on U.S. direct investment abroad. Eco- competitiveness (chart 2). However, the real nomic performance across countries varied con- value of the dollar did rise on balance relative to siderably. For the Group of Ten (G-10) countries, other G-10 currencies in 1989, to an average level average growth slowed markedly after the first 7 percent above that of 1988. The indicated quarter; during 1990 Canada and the United decline in U.S. price competitiveness probably Kingdom moved into recessions, but economic had a lingering negative effect on the U.S. trade activity continued strong in Germany and Japan. position in 1990. However, the subsequent de- Economic growth in the other industrial and cline in the dollar in the latter part of 1989 and in developing countries important to U.S. exports 1990 led to a cumulative improvement in U.S. was mixed as well. In Latin America, Mexico price competitiveness and appears to have had a was able to sustain fairly strong growth but other significant stimulative effect on net exports by countries, such as Argentina and Brazil, had the last quarter of 1990. slowdowns or recessions that were associated Another aggregate measure indicating changes with stabilization programs. The newly industri- in price competitiveness is unit labor costs in alizing economies of Asia (NIEs) continued to manufacturing in the United States compared grow rapidly. 2. Real exchange value of the dollar against U.S. Price Competitiveness currencies of selected countries Index, 1982= 100 The competitiveness of U.S. export and importcompeting industries depends on a variety of factors, including relative productivity growth, wage rates, the costs of inputs other than labor, exchange rates, shifts in the composition of demand, and firms' pricing decisions and profit margins. On an aggregate level, there are several useful indicators of price competitiveness. One overall measure of pressures on price competitiveness is the real exchange rate: that is, The real exchange value of the dollar is calculated using weighted the nominal exchange rate adjusted for relative nominal exchange rates adjusted with weighted consumer prices. The weights in the indexes are proportional to each country's share in world inflation. The trend in the real exchange value of exports plus imports during the years 1972-76. For the countries in the the dollar relative to the currencies of major U.S. G-10 index, see the note to table 1; the countries in the developingcountries index are Brazil, Hong Kong, Korea, Malaysia, Mexico, trading partners has been down since the mid- the Philippines, Singapore, and Taiwan. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1990 289 3. U.S. and foreign unit labor costs in manufacturing decline recorded in 1989. The increase in the value of exports was almost matched by the increase in the value of imports (table 2). Moreover, a comparison of the trade balance in the fourth quarter of 1990 with that in the fourth quarter of 1989 shows no improvement at all. For the most part, the U.S. trade picture continued to improve, but oil market developments masked this improvement in 1990. Excluding oil imports, the U.S. trade deficit decreased $17 billion—less than the $23 billion improve- 1982 1984 1986 1988 1990 ment in 1989, but still substantial. The foreign index includes Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, and the United Kingdom, and is constructed by weighting each country's unit labor costs by its share in total manufacturing output. Exports SOURCE. Peter Hooper and Kathryn Larin, "International Comparison of Unit Labor Costs in Manufacturing," Review of Income and Wealth, series 35 (December 1989), pp. 335-55. Measures of unit The value of U.S. agricultural exports declined labor costs are based partly on data published by the Bureau of slightly in 1990 from the high 1989 level (table Labor Statistics. 2). Crop yields that were average to better than average in the United States and in the rest of with those in other industrial countries. As chart the world allowed for a further replenishing of 3 indicates, translated into dollars an average of stocks and resulted in the continued downward unit labor costs for other major industrial coun- drift of agricultural prices from the droughttries has risen substantially relative to U.S. costs induced highs of 1988. The price of wheat led as the dollar has fallen from its 1985 peak. At the decline in agricultural export prices in 1990. present, manufacturing in the United States ap- Strong world production of wheat and lackluspears to have a significant cost advantage over ter imports by the Soviet Union and China manufacturing in these other countries—a situa- resulted in a gradual erosion of prices over the tion representing a shift from that in the first half year. of the 1980s. Special factors influenced the quarterly pattern of U.S. exports. Large purchases of corn by the Soviet Union, which had resumed in the fourth DEVELOPMENTS IN MERCHANDISE TRADE quarter of 1989, tailed off rapidly after the second quarter of 1990. Exports of the new crop of Improvement in the U.S. merchandise trade soybeans got off to a slow start late in 1990. balance slowed in 1990, with the deficit narrow- South America provided stiff competition for ing only $6 billion for the year—half the rate of U.S. products in a market hurt by dwindling 2. U.S. merchandise trade, 1988-90' Billions of dollars, seasonally adjusted at annual rates 1989 1990 TTyyppee ooff ttrraaddee 11998888 11998899 11999900 Q4 Ql Q2 Q3 04 Merchandise exports 320 361 389 367 384 386 385 402 Agricultural 38 42 40 41 44 41 39 38 Nonagricultural 282 319 349 326 341 345 346 364 Merchandise imports 447 475 498 482 491 479 504 517 Oil 40 51 62 53 62 49 63 75 Non-oil 408 424 436 429 429 431 441 442 Trade balance -127 -115 -109 -115 -107 -93 -119 -115 1. Components may not add to totals because of rounding. SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S. international transaction accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

290 Federal Reserve Bulletin • May 1991 purchases by the Soviet Union and Pakistan 3. Changes in the quantity of U.S. exports, 1988-90 because of financial considerations. Percentage change, fourth quarter to fourth quarter The value of nonagricultural exports expanded Quantity about 9 percent in 1990 (year over year), down TTyyppee ooff eexxppoorrtt 1988 1989 1990 from an even stronger 13 percent pace in 1989. As chart 4 indicates, increases in quantity ac- Capital goods 21 11 12 Computers 22 12 16 counted for most of the growth in value, and Other 21 11 8 these increases were concentrated in the first and Automotive products 8 -2 0 Consumer goods 29 25 16 last quarters. The slowdown in economic growth Foods 1 15 -7 Industrial supplies 12 11 11 in the major U.S. trading partners after the first Other 2 23 -18 quarter, however, negatively affected the expan- MEMO: sion of the quantity of U.S. exports. The linger- Agricultural 0 12 -6 Nonagricultural 17 12 9 ing negative effects of the decline in U.S. price competitiveness in 1989 associated with the SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, national income and product accounts. higher exchange value of the dollar relative to the average of other G-10 currencies also probably and were about in line with increases in U.S. contributed to the slowing of export growth. domestic producer prices (weighted by export Nevertheless, exports picked up strongly again shares). The fixed weight price index for U.S. in the fourth quarter, despite continued slow nonagricultural exports increased 4 percent begrowth abroad on average, possibly because the tween the fourth quarter of 1989 and the fourth stimulative effects of the cumulative gains in quarter of 1990. Small price increases (measured price competitiveness during 1990 began to show in dollars), combined with the sharp depreciation through. in the average foreign exchange value of the Over the four quarters of 1990, increases in the dollar, imply that export prices of U.S. goods quantity of exports were largest for consumer measured in foreign currencies declined substangoods, capital goods, and industrial supplies (ta- tially on average. On the whole, U.S. exporters ble 3). However, the percentage increase in appear to have taken advantage of the opportuexports of consumer goods and capital goods nity to improve their price competitiveness other than computers was smaller over the four abroad rather than to raise profit margins on their quarters of 1990 than it was for the previous year. foreign sales when the dollar fell. Exports of automotive products were flat, while In terms of destination, the growth in the value exports of foods declined. of nonagricultural exports varied considerably Export price increases (measured in dollars) from country to country (table 4). The growth of were rather modest over the four quarters of 1990 exports to Canada was sluggish, a development that reflected that country's economic recession. In contrast, exports to Western Europe, particularly consumer goods, commercial aircraft and 4. U.S. nonagricultural exports 4. U.S. nonagricultural exports, by region, 1988-90 Billions of dollars Value Percentage change IImmppoorrttiinngg rreeggiioonn 1988 1989 1990 1990 All regions, total .. 282 319 349 9 Canada 70 76 79 3 WWeesstteerrnn EEuurrooppee .... 78 91 104 14 30 36 40 12 Mexico 18 22 26 17 Other 86 94 101 8 1. Seasonally adjusted annual rate. SOURCE. U.S. Department of Commerce, Bureau of Economic An- SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, alysis, U.S. national income and product accounts. U.S. international transaction accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1990 291 other capital goods, and industrial supplies, were imports of passenger cars. On a year-over-year strong. Exports to Mexico also increased basis, the geographic pattern of car imports disharply, particularly shipments of automotive verged considerably. The number of units imparts for use by Ford, General Motors, and ported from Canada, Mexico, and Germany rose Chrysler in their Mexican plants. Led by in- strongly; on the other hand, imports from Japan, creased deliveries of commercial aircraft and Korea, and Sweden dropped. For Japanese auto consumer goods, exports to Japan grew 12 per- makers, increased production at their U.S. plants cent. more than offset declines in imports. Sales of Japanese nameplate cars were about 4 percent Imports higher in 1990 than in 1989, in contrast to the decline in sales by U.S. Big Three auto makers. The value of non-oil imports rose about 3 percent While the value of U.S. non-oil imports overall during 1990 (year over year). On a fourth-quar- grew slowly in 1990, there were significant difter-to-fourth-quarter basis, imports grew a mod- ferences across countries of origin (table 6). est 3 percent, despite the substantial depreciation Automotive products accounted for more than of the dollar relative to the currencies of major half of the sharp increase in non-oil imports from U.S. trading partners during this period. De- Mexico, a result of increased production in Mexclines in the prices of many primary products ico by U.S. auto makers. Imports from Canada contributed to the overall weakness in import rose slightly, while imports from Western Euprices. In addition, some exporters to the United rope, particularly Germany, were somewhat States, faced with slack demand, may well have stronger. In contrast, imports from Japan, parallowed their profit margins to decline rather than ticularly capital goods and automotive products, suffer further declines in sales. declined. There was also a decline in imports, The quantity of U.S. non-oil imports also grew primarily consumer goods, from the Asian NIEs; slowly during 1990, largely because of the slow- however, imports from other low-wage Asian down in U.S. economic activity (table 5). On a countries increased. fourth-quarter-to-fourth-quarter basis, imports of The value of oil imports jumped $11 billion in capital goods other than computers and industrial 1990 to $62 billion. On a fourth-quarter-to-fourthsupplies were essentially flat, and imports of quarter basis, the increase was even larger—$22 consumer goods and foods, feeds, and beverages billion at an annual rate. Price developments declined. Growth of computer imports—at 9 per- accounted for most of the increase in value. cent—was far below the strong 1989 pace. The price of imported oil, which had increased Imports of all automotive products were up in the fourth quarter of 1989 as a result of only slightly in 1990. Declines in imports of extremely cold weather, fell almost continuously trucks and parts nearly offset a sharp rise in in the first half of 1990 (see chart 5). Rapid increases in OPEC production, combined with 5. Changes in the quantity of U.S. non-oil imports, 1988-90 6. U.S. non-oil imports, by region, 1988-90 Percentage change, fourth quarter to fourth quarter Billions of dollars Quantity Value Percentage TTyyppee ooff iimmppoorrtt change EExxppoorrttiinngg rreeggiioonn 1988 1989 1990 1988 1989 1990 1990 Non-oil, total All regions, total .. 408 424 436 3 Computers All other Canada 80 83 86 3 Industrial supplies.... Western Europe .. 98 97 103 6 Other capital goods... 10 6 0 Japan 90 93 90 -4 Automotive -1 -10 1 Asian NIEs' 63 63 61 -3 Consumer goods 5 3 -2 Mexico 20 23 25 11 Foods, feeds,, and Other 58 65 72 10 beverages -5 10 -4 1. Includes Hong Kong, Singapore, Taiwan, and Korea SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, national income and product accounts. U.S. international transaction accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

292 Federal Reserve Bulletin • May 1991 5. Oil prices 6. U.S. oil consumption, production, and imports Dollars per barrel Millions of barrels per day 1982 1984 1986 1988 1990 SOURCE. U.S. Department of Commerce, Bureau of Economic An- SOURCE. U.S. Department of Energy, Energy Information Adminisalysis; Petroleum Intelligence Weekly, various issues. tration, Petroleum Supply Monthly, various issues. milder weather in the first quarter, permitted a tied at roughly $20 per barrel by the end of restoration of previously depleted stocks as well March. as softer prices. However, the OPEC agreement The volume of U.S. oil imports grew only 1 in mid-July to limit production, followed shortly percent in 1990 (year over year), despite the by the invasion of Kuwait by Iraq, ended the continued decline in U.S. oil production (chart period of falling prices. The initial results of 6). The decline in oil prices since 1982 has Iraq's invasion of Kuwait were a reduction in discouraged expenditures on exploration and deworld production, precautionary stock building, velopment in the United States and has resulted and a sharp increase in prices to a peak of $40 per in lower production. Imports in 1990 supplied barrel for West Texas intermediate for several almost half of U.S. consumption, up from a range days in early October. By November, rapid of 35 percent to 40 percent in the early 1980s. increases in oil production, both within OPEC The volume of oil imports varied substantially and in the North Sea, had entirely offset the loss from quarter to quarter in 1990. An extremely of supply from Iraq and Kuwait (table 7). This cold December in 1989 pushed stocks of petroincrease in production, coupled with slowing leum and products in the United States well world economic growth and a mild winter, below average historical levels by year-end. A brought prices back to a range of $26 to $28 per scramble by companies to replenish these stocks barrel in December and early January and left in the first quarter resulted in imports averaging world stocks at historically quite comfortable 8.9 million barrels per day—the highest rate of levels. Oil markets reacted favorably to the suc- imports since the first quarter of 1979—despite cess of Operation Desert Storm, and prices set- unusually mild weather. Falling world oil prices 7. World crude oil supply Millions of barrels per day 1990 PPrroodduuccttiioonn qquuoottaass IItteemm 11998899 sseett bbyy OOPPEECC Ql Q2 Q3 Q4 ((JJuullyy AAccccoorrdd)) Production' Saudi Arabia2 5.1 5.7 5.6 6.4 8.2 5.4 Iraq 2.8 3.0 3.1 1.3 .4 3.1 Kuwait2 1.8 2.1 1.9 .7 .1 1.5 Other OPEC 12.0 12.8 12.9 13.1 14.4 12.5 Non-OPEC 36.8 36.9 36.8 36.1 37.3 World total 58.4 60.5 60.3 57.7 60.4 Stock change .1 .5 2.7 -.8 .9 1. Excludes natural gas liquids and lease condensates. SOURCES. International Energy Agency, Monthly Oil Market Report; 2. Includes half of Neutral Zone production through July 1990. Beginning Petroleum & Energy Intelligence Weekly, Inc., Petroleum Market Intelligence; in August, all Neutral Zone production is attributed to Saudi Arabia. Central Intelligence Agency, International Energy Statistical Review, monthly. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1990 293 in the second quarter encouraged additional Unilateral Transfers stockbuilding from the healthy first-quarter levels and, coupled with further declines in U.S. In recent years, unilateral transfers have crude oil production (especially in Alaska), kept amounted to net outflows averaging about $15 imports relatively high through July. billion per year, largely composed of U.S. gov- The invasion of Kuwait by Iraq boosted pre- ernment grants and pensions to foreign residents. cautionary stockbuilding of petroleum products However, the crisis in the Persian Gulf had a in the United States, which fueled continued significant effect on the level of transfers for the strength in imports in the third quarter. How- fourth quarter of 1990, and, as a result, the ever, in contrast to the rest of the world, stocks outflow for the year rose to $21 billion. The in the United States were worked off in the fourth United States forgave Egypt's debt related to quarter and at the end of the first quarter of 1991 earlier military sales (an outflow of approxistood somewhat below historical average levels. mately $7 billion). On the other hand, the U.S. These stocks were drawn down as refineries cut government received significant transfers from production in the face of weak economic activity other governments to help defray the costs of and mild winter weather to perform needed main- Desert Shield (about $4 billion). Substantially tenance. Imports for the fourth quarter fell below larger contributions by foreign governments to 7.2 million barrels per day in the face of these help cover the costs of Desert Storm are exdrawdowns of stocks. pected in 1991. Services NONTRADE CURRENT ACCOUNT Net services, which include military exports and The surplus on nontrade current account grew imports, also reflected the effects of the crisis in from $5 billion in 1989 to $9 billion in 1990 (table the Persian Gulf. Military sales rose $2 billion in 8). Increases in net receipts of investment in- 1990, largely a result of increased deliveries of come and net exports of services were partly equipment to coalition partners in the Middle offset by an increase in net U.S. unilateral trans- East. It should be noted, however, that shipfers abroad. ments of material and equipment from the United 8. U.S. nontrade current account transactions, 1986-90' Billions of dollars 1. Details may not add to totals because of rounding. SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S. international transaction accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

294 Federal Reserve Bulletin • May 1991 States for use by U.S. troops abroad are not U.S. economic activity. Since the beginning of counted as exports. Military expenditures abroad 1987, foreigners have added more than $200 also rose in 1990, by $2 billion, because of billion to their direct investments in the United increased purchases abroad associated with op- States, but reported income payments on all erations in the Middle East. This total does not direct investments of foreigners in the United include in-kind supplies (for example, fuel, wa- States were lower in 1990 than they were in 1987. ter, and housing) provided to U.S. forces by Net portfolio investment payments increased other countries. only slightly, despite continued growth in U.S. The net balance on services other than military net international indebtedness. The deteriorasales and expenditures continued to improve, a tion in the net portfolio position was masked in trend that reflected the U.S. comparative advan- part by the decision to forgive Egypt's military tage in producing certain kinds of services and sales debt and the accounting treatment that the same relative price and income movements credited cumulative interest arrears as paid in that have led to continued improvements in the the fourth quarter. A decline in average interest U.S. trade balance. In line with the growing rates also tempered somewhat the growth in net importance of services in U.S. international payments. transactions, both exports and imports of services grew more rapidly than trade in goods. CAPITAL ACCOUNT TRANSACTIONS AND Travel and passenger fares accounted for nearly THE STATISTICAL DISCREPANCY half of the increase in service receipts; the same two categories plus other ^transportation ac- The net capital inflows that were the counterpart counted for more than half the increase in pay- to continuing U.S. current account deficits went ments. largely unrecorded in 1990 (table 9). As a result, the statistical discrepancy in the U.S. interna- Investment Income tional transactions accounts reached $73 billion. In principle, the sum of all transactions in the Net investment income was positive in 1990, in U.S. balance of payments accounts, a doublecontrast to a small negative amount in 1989 (table entry bookkeeping system, should equal zero. 8). Increases in net direct investment receipts For each transaction there should be two equal outweighed increases in net portfolio investment entries of opposite sign. In practice, the recorded payments. Direct investment receipts were larger accounts never sum exactly to zero because the than those in 1989, mainly because of temporary data that reflect the debit and credit counterparts spikes in petroleum prices and profits: Income of of each single transaction generally are obtained affiliates of U.S. petroleum companies abroad from different sources. The statistical discrep- (before capital gains or losses) increased 30 per- ancy recorded for the international transactions cent. In contrast, income reported by manufac- account is the net of errors and omissions in all turing affiliates abroad declined, despite the re- the components. cent rapid growth in U.S. direct investment A positive statistical discrepancy represents abroad and the lower foreign exchange value of some combination of net unrecorded exports to the dollar, which tends to inflate the dollar value foreigners of goods, services, and investment of profits earned by U.S. companies in other income and net unreported capital inflows from countries. Recessions in Canada and the United abroad. While errors and omissions do occur in Kingdom, countries that account for about one- the reporting of current account transactions as third of all U.S. direct investments abroad, well as capital account transactions, the more tended to depress incomes earned by U.S. inves- than three-fold increase in the statistical discreptors. ancy from $22 billion in 1989 was probably The returns reported by foreigners on their accounted for largely by net unreported private direct investments in the United States generally capital flows. The actual current account is not have been low in recent years, and income in likely to have improved by the additional $50 1990 was depressed further by the slowdown in billion represented by the increase in the statis- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1990 295 9. Composition of U.S. capital flows, 1986-90 ^ 1988 1989 1990 Current account balance -128.9 -110.0 -99.3 Official capital, net 38.6 -15.3 31.6 Foreign official assets in the United States 39.5 §gg 8.8 30.8 U.S. official reserve assets -3.9 -25.3 -2.2 Other U.S. government assets 3.0 1.2 3.0 Private capital, net 98.7 « 102.9 -5.3 Net inflow reported by U.S. banking offices . 10.5 20.6 42.4 -23.8 Securities transactions, net Private foreign net purchases of the following: 30.0 1.1 U U . . S S . . c T o r r e p a o su ra ry te s b e o c n u d ri s t 1 i es 2 6 7. . 8 6 -1 1 4 6 .8 .7 U.S. corporate stocks -21.9 -26.8 U.S. net purchases of foreign securities ... 45.7 -8.4 Direct investment, net 72.2 25.7 F U o .S re . ig d n ir e d c i t r e i c n t v e in s v tm es e t n m t e a n b t ro in a d t 1 h e United States -26 4 . . 5 3 -34 6 . . 2 3 • Other Statistical discrepancy 6.8 -8.4 22.4 73.0 1. Transactions with finance affiliates in the Netherlands Antilles have been SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, excluded from direct investment outflows and added to foreign purchases of U.S. international transaction accounts. U.S. securities. tical discrepancy between 1989 and 1990. Based An increase in foreign holdings of U.S. curon past history, the recorded improvement in the rency could explain only part of the statistical current account in 1990 was no smaller than discrepancy in 1990. However, pinpointing exwould have been expected, given movements in actly where the other errors and omissions relative prices and incomes. Changes in holdings occurred is difficult. In recent decades, financial of official monetary authorities also are likely to innovation, technological change, deregulation be reported accurately, especially since a large of financial markets, and elimination of capital part of official reserves in the United States are controls have all contributed to the increasing held on a custodial basis at the Federal Reserve internationalization of financial markets. New Bank of New York. In addition, foreign data channels for capital flows involving new instrusources do not give any indication of large in- ments and new participants have developed; creases in official dollar holdings that did not therefore information from a limited number of show up in the U.S. statistics. large financial intermediaries and corporations One obvious omission from the data on private located in the United States no longer covers capital flows is increases in foreign holdings of the bulk of international capital flows. These U.S. currency. Fragmentary evidence indicates a developments have made the tracking of intersharp rise in net shipments of U.S. currency national capital flows far more problematical at abroad by banks in 1990.1 Increased foreign a time when obtaining additional resources to demand for U.S. currency could well have been devote to data collection has been difficult. stimulated by increased political and economic Recorded capital flows indicate an increase in instability in many parts of the world. net inflows reported by banks. However, net inflows resulting from securities transactions and direct investment were down sharply, and other 1. Transactions that result in increased foreign holdings of recorded capital inflows were small. Relative U.S. currency do not always contribute net to the statistical interest rate movements made dollar assets less discrepancy. In a system of double-entry bookkeeping, it attractive relative to assets denominated in yen depends on whether the other side of the transaction is reported or omitted as well. In the case of net shipments of or marks and made raising funds in the United currency abroad by banks, the other side of the transaction States to finance acquisitions and operations (the payment to the bank for the currency) is reported and more attractive for multinational corporations. does contribute to a positive discrepancy. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

296 Federal Reserve Bulletin • May 1991 Despite continued large-scale acquisitions of direct investment abroad is much older on aver- U.S. businesses by foreigners, the direct invest- age than foreign direct investment in the United ment capital inflow fell from $72 billion in 1989 to States. BEA is preparing alternative estimates of only $26 billion in 1990; the capital outflow the direct investment position based on market reported by U.S. direct investors abroad in- value and replacement cost for publication later creased from $32 billion in 1989 to a record $36 this year. billion in 1990. Not all significant corrections to the data tend Nevertheless, as long as the United States runs to increase the net investment position of the substantial current account deficits and net offi- United States. The investment position is esticial capital inflows are small, the sum of recorded mated using data on recorded capital flows. and unrecorded net private capital inflows must However, the statistical discrepancy in the U.S. be large and positive: That is, the balance of international transactions accounts since 1975 payments accounts must sum to zero. Changes in has tended to be both large and positive, cumurelative interest rates can be reflected in changes lating to more than $275 billion. If, as suspected, in exchange rates and shifts in the composition of unrecorded capital inflows account for a significapital flows, but not, initially at least, in shifts in cant part of the cumulative positive discrepancy, realized net capital flows overall. Only over time, then net foreign assets in the United States are as the current account responds to a decline in underestimated to that extent. the dollar's value, can realized net capital inflows decline. The recorded data on private capital flows in 1990, which show a sharp decline in net inflows, should be viewed with suspicion. PROSPECTS FOR 1991 The U.S. current account deficit is likely to INTERNATIONAL INVESTMENT POSITION shrink rapidly in 1991 if oil prices remain at about their current level. An important, but transitory, Although continuing U.S. current account defi- factor behind the expected improvement in the cits and net capital inflows certainly imply faster current account is substantial unilateral transfers growth of foreign assets in the United States than from foreign governments to cover the costs of of U.S. assets abroad, the Bureau of Economic Desert Storm. In addition, the U.S. recession Analysis (BEA) did not publish an overall esti- will cut temporarily into U.S. imports of goods mate of the net U.S. international investment and services and payments of profits on foreign position last year. BEA argued that, because direct investment in the United States. Moresome components of the investment position are over, the imprdvement in U.S. price competimeasured at historical cost while others are mea- tiveness resulting from the substantial depreciasured at current market value, adding compo- tion of the foreign exchange value of the dollar in nents based on such a mix of valuations would 1990 is likely to continue to have favorable not provide a useful indicator of the level of the effects on the trade balance in 1991. These favorinvestment position. The valuation of direct in- able effects will diminish subsequently, espevestment at historical cost may very well under- cially if the recent strengthening of the dollar state the net investment position because U.S. persists. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

297 Industrial Production and Capacity Utilization Released, for publication on March 15 percent in February—about the same as declines in the previous three months. Total industrial Industrial production fell 0.8 percent in February capacity utilization fell 0.8 percentage point in after declines of 1.1 percent and 0.5 percent February to 79.1 percent, its lowest level since respectively in December and January. Assem- late 1986. At 105.7 percent of its 1987 annual blies of autos and trucks fell more than 5 percent, average, industrial production in February was retracing their January rise. Excluding motor 2.6 percent below its level a year ago. vehicles and parts, production decreased 0.7 In market groups, in February, output of con- 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 II Percent of capacity Percent of capacity Total industry Manufacturing 90 90 Utilization 80 80 70 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, February. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

298 sumer goods excluding autos and trucks fell 0.5 after having fallen in each of the three preceding percent, about the same rate of decline as in months; last month, a rise in the output of paper December and January. Production of appli- materials about matched declines in textiles and ances, carpeting, furniture, and electricity for chemicals. Production of energy materials was residential use fell last month, more than offset- reduced again in February because electricity ting a sharp jump in consumer fuel, particularly generation dropped sharply. gasoline. Output of business equipment other In industry groups, manufacturing output fell than motor vehicles decreased 0.4 percent fur- 0.8 percent in February, and the factory utilizather in February, reflecting sizable declines in tion rate fell 0.8 percentage point to 78.0 percent, both industrial and farm equipment; production its lowest rate since December 1983. Once again, of information-processing equipment, which in- declines occurred in most major industries, alcludes computers, posted gains in both January though they were more pronounced in durable and February. Output of construction supplies manufacturing. Output in primary metals fell fell 1.1 percent in February, continuing the sharply for the third consecutive month; iron and sharp contraction that began in August. steel output dropped about IVi percent in both For the third successive month, the rate of January and February, lowering its utilization decline in the output of materials exceeded that rate to less than 69 percent. The utilization rate of products, owing mainly to widespread cut- for lumber and products also fell sharply because backs in production of durable materials, par- output fell 3.5 percent. ticularly parts used by the motor vehicle indus- Utilization in manufacturing has been falling try and basic metals. Production of nondurable rapidly since September after having edged down materials was about unchanged in February, throughout the summer. The principal contribu- 1987 = 100 Percentage change from preceding month PPPeeerrr--ccceeennntttaaagggeee ccchhhaaannngggeee,,, IIInnnddduuussstttrrriiiaaalll ppprrroooddduuuccctttiiiooonnn 1990 1991 1990 1991 FFFeeebbb... 111999999000 tttooo Nov/ Dec/ Jan.p Feb.p Nov/ Dec/ Jan/ Feb.p FFFeeebbb... 111999999111 Total index 108.3 107.2 106.6 105.7 -1.5 -1.1 -.5 -.8 -2.6 Previous estimates 108.2 107.0 106.5 -1.6 -1.1 -.4 Major market groups Products, total 109.3 108.4 107.9 107.2 -1.6 -.7 -.5 -.7 -2.0 Consumer goods 106.5 105.5 105.4 104.6 -1.9 -.9 -.1 -.7 -2.2 Business equipment 122.9 121.6 121.2 120.4 -2.0 -1.1 -.3 -.7 .3 Construction supplies 101.8 100.8 98.6 97.5 -1.3 -1.0 -2.1 -1.1 -9.9 Materials 106.8 105.2 104.5 103.4 -1.4 -1.6 -.6 -1.1 -3.4 Major industry groups Manufacturing 108.9 107.4 106.9 106.0 -1.6 -1.4 -.5 -.8 -3.3 Durable 109.9 107.6 107.0 105.7 -2.4 -2.1 -.5 -1.3 -4.6 Nondurable 107.7 107.2 106.8 106.5 -.6 -.5 -.4 -.2 -1.6 Mining 103.3 103.2 102.5 103.3 .7 -.1 -.7 .8 2.3 Utilities 106.9 108.5 107.6 104.1 -2.0 -1.4 -.8 -3.3 .1 Percent of capacity CCCaaapppaaaccciiitttyyy gggrrrooowwwttthhh,,, CCCaaapppaaaccciiitttyyy uuutttiiillliiizzzaaatttiiiooonnn 1990 1990 1991 FFFeeebbb... 111999999000 AAvveerraaggee,, LLooww,, HHiigghh,, tttooo 11996677--9900 11998822 11998888--8899 FFFeeebbb... 111999999111 Feb. Nov/ Dec/ Jan/ Feb.p Total industry 82.2 71.8 85.0 83.3 81.6 80.5 79.9 79.1 2.5 Manufacturing 81.5 70.0 85.1 83.0 80.7 79.4 78.8 78.0 2.9 Advanced processing 81.1 71.4 83.6 81.7 79.6 78.6 78.1 77.5 3.3 Primary processing 82.4 66.8 89.0 86.1 83.2 81.3 80.4 79.2 2.2 Mining 87.4 80.6 87.2 87.4 90.6 90.7 90.1 90.9 -1.7 Utilities 86.8 76.2 92.3 82.5 83.8 84.9 84.1 81.2 1.6 r Revised, NOTE. Indexes are seasonally adjusted. p Preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization 299 tors to this drop have been motor vehicles and February, mainly reflecting a gain of 4 percent related industries, although declines also have in coal production. Production at utilities fell been recorded in almost all industries. 3.3 percent as relatively mild winter weather Output at mines increased 0.8 percent in continued. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

300 Statements to the Congress Statement by Alan Greenspan, Chairman, Board real activity later this year, with real GNP ending of Governors of the Federal Reserve System, 1991 between 3A percent and Wi percent higher before the Committee on Ways and Means, U.S. than it was in the fourth quarter of 1990. House of Representatives, March 6, 1991. In discussing those projections, we stressed the extent to which uncertainties associated both I am pleased to have the opportunity to appear with the situation in the Gulf and with several before you again. As you know, the Federal unresolved problems in the economy made the Reserve's semiannual "Monetary Policy Report outlook unusually difficult to assess; to a someto the Congress" and testimony, which were what lesser extent, that is still the case. Cersubmitted to the Congress two weeks ago, pro- tainly, the successful end to the hostilities in the vided an extensive review of recent and prospec- Gulf has removed a troublesome uncertainty and tive economic developments and of monetary should provide some lift to consumer and busipolicy actions and intentions.1 Rather than take ness confidence. But the other factors that we you through the details of that report this morn- noted earlier—concerns about credit availability ing, I would like, first, to focus on a few of the and problems in real estate markets—continue to most critical considerations affecting the outlook restrain activity and to weigh importantly on for the economy and the formulation of monetary business thinking. policy and, then, to turn briefly to budgetary The restraint on credit availability at depository issues. institutions represents a continuing clear risk to the outlook and, therefore, is a critical challenge for policy. To date, our assessment is that re- THE ECONOMIC OUTLOOK AND duced demand for credit stemming from the weak- MONETARY POLICY ness in real activity accounts for most of the recent contraction in bank lending. Nonetheless, The recently available readings on business ac- developments on the supply side also have had a tivity indicate that the economic contraction that noticeable effect. The surveys of senior loan ofbegan during the latter part of 1990 has continued ficers that are conducted by the Federal Reserve in recent months. However, the incoming infor- at three-month intervals have shown progressive mation, on balance, does not suggest that the tightening of business credit terms since last recession is becoming more serious than we spring. Banks report that they have been applying thought a month ago when we formulated our more stringent credit standards and have made economic projections for 1991. At that time, the the price and nonprice terms of business credit "central tendency" forecast of the Federal Open less favorable to a wide range of customers. Market Committee (FOMC) members and other Several factors underlie these changes in lend- Reserve Bank presidents anticipated an upturn in ing practices. Given the uncertain economic environment, banks are appropriately taking a closer look at prospective borrowers in some specific industries. But what is of most concern 1. See "Monetary Policy Report to the Congress," Federal to us is restraint on lending by commercial bank- Reserve Bulletin, vol. 77 (March 1991), pp. 147-64 and ers to otherwise creditworthy customers. For "Statement by Alan Greenspan, Chairman, Board of Governors of the Federal Reserve System, before the Committee borrowers whose riskiness has been essentially on Banking, Housing, and Urban Affairs, U.S. Senate, Feb- unaffected by the recession or by developments ruary 20, 1991," Federal Reserve Bulletin, vol. 77 (April in specific markets, the reluctance of banks to 1991), pp. 240-46. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

301 lend seems to arise from attempts to bolster probably occur, even during a period of renewed capital positions. Banks are trying to raise capi- economic growth. Beyond the impact on new tal-asset ratios, or at least hold down declines in construction, the existence of a sizable stock of those ratios that might result from losses on underused properties whose asset values have outstanding loans. In some cases, loan losses and declined has repercussions for financial institupressures on capital may be exacerbated by the tions that are carrying them on their balance degree to which examination standards are forc- sheets. ing loans to be written down inappropriately or The most notable feature of the current downby market reaction to aggregated data on prob- turn has been the marked erosion of business lem credits on certain categories of loans. attitudes and consumer confidence that occurred Information from our surveys and estimates of after July. In the business sector, the clearest funds supplied in financial markets indicate that manifestation of the deterioration in attitudes the majority of those borrowers who have been was the rapidity with which producers moved to turned away or who have been discouraged from cut output and to pare inventories in response to borrowing at depository institutions have been actual or anticipated weakness in sales. Judging able to find financing elsewhere. But one must from readings of anticipated hiring, inventory assume that the alternatives, when they exist, are accumulation, and capital spending, businesses only available at a higher price. The problems of remained in this cautious stance early this year, locating other sources of credit may be especially awaiting firm indications of the timing and severe for some types of borrowers—small bus- strength of any recovery in demand. inesses and those in commercial real estate, for Consumer confidence also registered an uninstance—who may not have ready access to precedented plunge between July and October securities markets. How much production has last year, which probably was an element debeen lost as a result of sound projects cut back or pressing business expectations for sales. Such a unable to go forward because of a rise in fi- decline in sentiment also might have been exnancing costs or because of an actual or feared pected to result in a rise in precautionary saving. lack of financing is difficult to assess. But it is But, income growth also was depressed, and clear that the restraint on credit availability, when the sudden rise in oil prices forced housealong with the deterioration in profits, began to holds to devote a significantly higher share of enter importantly in business decisionmaking their disposable income to energy bills, both even before the onset of the recession. saving and spending, in real terms, were cut back Several steps that should relieve constraints on sharply. credit supplies have been taken by the Federal It would be most unwise to ignore the possi- Reserve. These steps include lowering interest bility that all or some combination of these rates, reducing reserve requirements, and work- negative factors could cause the contraction in ing with other depository supervisory agencies to economic activity to last longer or be more identify and correct practices that may be unnec- serious than is currently anticipated. essarily discouraging the flow of funds to credit- Nonetheless, several elements appear to be worthy borrowers. Taken together, these steps moving into place that should enhance prospects may well prove sufficient to foster the growth of for recovery. On balance, when these positive credit needed to finance economic expansion. forces are weighed with the negatives, the scales But we recognize the risk that problems in this appear to tip slightly in favor of suggesting that area could persist and could warrant further the current downturn might well prove milder actions. than most of the recessions in the past forty Another clear negative in the outlook remains years. the real estate sector, the problems of which One important factor on the positive side of the have exacerbated the difficulties of financial in- outlook is the sharp drop in petroleum prices that stitutions. In the commercial sector, the over- accompanied the military flare-up in the Gulf. hang of vacant space is still substantial, implying The price of gasoline by late February apparently that further declines in new construction will was back to its late-July level; the cost of home Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

302 Federal Reserve Bulletin • May 1991 heating oil should retreat further as well in com- aflfordability of single-family housing eventually ing months. While the secondary effects of the should show through in a pickup in sales and cutbacks in employment and income are still homebuilding. Other sectors also are expected to running their course, the relief from lower energy respond to lower financing costs as the year prices, along with a potential boost to confidence progresses. Although interest rates have risen a from the end of the Gulf war, should be laying the bit in recent weeks, this rise should not materigroundwork for some firming in consumer spend- ally interfere with an upturn in activity. The ing in coming months. increase seems to reflect new optimism about the Indeed, in the days after the termination of prospects for the U.S. economy as the Gulf war hostilities, the anecdotal reports of increased has come to a successful conclusion. Indeed, traffic in real estate offices and auto showrooms yields on non-investment-grade bonds actually raise the possibility that stronger consumer de- declined in response to that expectation. mand may be emerging. But, I would caution that Since the onset of the recession last year, the such early signals can be quite difficult to read, areas of greatest concern in the economy have particularly at this time of the year. Typically, been those areas related to domestic spending sales of houses and autos surge in March. For because it has been in those sectors—consumpexample, as the weather improves, sales of new tion, homebuilding, nonresidential construction, and existing homes register their sharpest month- and business inventory investment—that the to-month gains between February and March— dropoff in activity has been most pronounced. jumps of 35 percent and 25 percent respectively. Nonetheless, it is also important to consider how The usual over-the-month pickup in domestic car domestic production has been affected by trends sales also is sizable (almost 19 percent). What is in exports and imports in recent months and to difficult to judge from the very recent reports is assess prospects for sustained stimulus from net how much more than the seasonal rise, if any, is exports. occurring as psychology improves. Hard eco- Viewed at the manufacturing level, the sources nomic data for the period after the successful of changes in production can be examined by ground war will not be available for some weeks. combining monthly data on factory output, in- Another important influence that is expected ventories, and sales with data on international to provide support for economic activity as the trade flows. A comparison of the six-month peyear progresses is the decline in interest rates, riod before the downturn in industrial activity which began a year and a half ago but was last October and the four months of contraction especially sharp in the past few months. Since through January offers some interesting results. late October, when the budget accord was In the six months before the downturn, manureached and economic activity showed clear facturing production was rising at an annual rate signs of weakening, the Federal Reserve has of about 2¥i percent, boosted considerably by a moved aggressively in a series of actions to ease recovery in motor vehicle assemblies from the money market conditions. Because a lessening of very low levels earlier in the year. Domestic cost pressures has improved the outlook for demand for business equipment and for industrial prices, the easing of policy has been possible materials also was relatively robust, although without raising new concerns in financial markets rising imports drained some of that strength away about inflation prospects. Such concerns could from domestic producers. At the same time, have had adverse consequences for the foreign export demand was providing little impetus to exchange value of the dollar and for longer term manufacturing production. The slowdown in exinterest rates. ports of industrial goods marked a sharp depar- But, in the prevailing circumstances, the sub- ture from the trend over the preceding four stantial drop in short-term market rates was years, when the share of exports in our factory accompanied by a net decline in long-term rates output rose 5 percentage points to 133/4 percent. as well. In particular, fixed-rate mortgage inter- However, since the peak in industrial producest rates are near their lowest levels since the late tion last September, the situation has reversed. 1970s, and the resulting improvement in the Between last September and this January, there Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 303 has been a resumption of growth in foreign depend importantly on the outlook for economic demand for U.S.-manufactured goods and a re- activity among our trading partners as well. duction in domestic demand for imported manu- Among the major foreign industrial countries, factured products and materials, including oil. significant divergences in economic performance For example, imports as a proportion of our emerged last year and are likely to continue this overall domestic demand for manufactured year. Canada and the United Kingdom both goods stabilized late last year. When combined moved into recession in 1990, and signs of a with rising exports, net imports of industrial turnaround in both cases are not yet evident. goods as a proportion of manufacturing produc- In contrast to the weakness in those two tion declined from about AVA percent late last countries, activity remains vigorous in Germany, summer to less than 4 percent at the turn of the where the stimulus of reunification between East year. These developments have cushioned the and West Germany has produced rapid real steep declines that have occurred as production growth and has sustained very high rates of has responded unusually promptly to the weak- utilization in industry in the western region. ness in the domestic economy. Cutbacks in do- Indeed, the continued strength of aggregate demestic purchases and inventory holdings of a mand in Germany has been a major cause of wide range of domestically manufactured con- recent upward movements in German interest sumer goods, business equipment, construction rates. In Japan, despite some indications of a supplies, and industrial materials have more than moderation in economic growth, prospects for a accounted for the drop of almost 4 percent (not continued expansion are still favorable. On balannualized) in manufacturing industrial produc- ance, it is quite possible that growth among our tion between September and January. major industrial trading partners will strengthen The brisk expansion in nonagricultural mer- somewhat later this year, particularly if those chandise exports late last year occurred in a countries experiencing recession start to revariety of industrial supplies and materials, as cover. well as in consumer goods and many types of Among developing countries, recent economic capital equipment. The sharpest gains were in performance has been uneven as well. Mexico shipments destined for countries in Western Eu- continues to achieve success in maintaining rope. This increase in export growth came de- growth while pursuing economic reforms. Howspite a weakening of activity in several of our key ever, in other Western Hemisphere countries, markets abroad, and it undoubtedly reflected the slowdown or even recession has accompanied gains in U.S. international price competitiveness current programs aimed at macroeconomic stathat had been building for some time. bilization. The crisis in the Persian Gulf has As a result of the decline in the foreign ex- disrupted output for some Middle East countries change value of the dollar and only moderate but has permitted other developing-country exincreases in U.S. export prices, the average price porters of oil to expand. In the period ahead, the of U.S. exports measured in terms of foreign reconstruction in the Middle East is likely to currencies has fallen nearly 15 percent since provide a significant boost to the exports of the mid-1989; at the same time, the prices of goods United States and of several other industrial produced abroad have been rising. In the past, countries. Indeed, U.S. firms already are consuch gains in U.S. price competitiveness have tracting to begin work in Kuwait as soon as led to significant growth in our exports, and if the circumstances permit. recent improvement is sustained, continued ex- The Gulf war has been overshadowing develpansion of U.S. exports would seem to be in opments elsewhere, particularly in Europe, and train. Even if growth abroad were to slow some- in the sphere of international trade negotiations; what, an increasing share of foreign markets these factors have potentially important implicawould provide considerable support for our ex- tions for both the U.S. economy and the econoports. mies of our major trading partners. As the West- Of course, the prospects for sustained strong ern European economies move closer to the 1992 growth in our exports of goods and services single internal market, they will benefit from Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

304 Federal Reserve Bulletin • May 1991 structural adjustment and increased competition. nomic performance are understandable. How- A stronger, more vibrant European economy in ever, they must be balanced against the benefits the long run will be a more vigorous trading that will flow from adhering to a budget strategy partner for the U.S. economy. In addition, prog- that is geared to the longer-run needs of the ress in the historic transformation of the econo- economy. Those needs can best be met by keepmies of Eastern Europe can be expected to lead ing the underlying or "structural" deficit firmly to new opportunities for U.S. producers of con- on a downward path, even as the actual deficit is sumer and capital goods. As these economies being swollen temporarily by the effects of a become more fully integrated into the world weak economy. trading order, they will broaden opportunities for In light of these considerations, voting to sustwo-way trade with mutual benefits to all. pend the enforcement provisions of the budget The focus on our export prospects highlights reconciliation act would be a mistake. Together the importance of a successful conclusion to the with the Administration, you worked long and Uruguay Round of trade negotiations. Indeed, hard last year to reach an acceptable package of the costs of a failure of that effort could be tax and spending changes and budget process serious. We all would lose opportunities to reforms. The budget agreement gave financial strengthen trade flows and realize efficiencies markets some assurance of stability and of future that could enhance standards of living world- easing of federal credit demands. Undercutting wide. It certainly would be unfortunate if, in- this commitment now risks adverse effects on stead, moves toward protectionism elicited retal- long-term interest rates and thus might well be iation, which would have particularly adverse self-defeating. consequences for U.S. producers just when their The new budget procedures make it easier than competitive position is so strong. under the previous Gramm-Rudman-Hollings Taken together, the favorable factors at work procedures for fiscal policy to have a stabilizing abroad and the stimulative forces in train in the effect on the economy. Among other things, domestic economy suggest the likelihood of a because the focus over the next several years is pickup in aggregate demand over coming on the reduction in the deficit brought about by months. And, with inventories relatively lean at legislative action, rather than the level of the most businesses, a recovery in demand should deficit per se, the need for policy adjustments to show through fairly promptly in a higher level of offset the effects of changes in economic condiproduction. tions has been eliminated. As a consequence, the Our monetary policy objective for 1991 is to automatic stabilizers that are in place can funcpromote economic recovery and to sustain tion as intended. growth at a rate that is consistent with progress Moreover, the historical evidence on the imover time toward price stability. Whether further plementation of discretionary countercyclical fisadjustments to policy will be required to foster an cal policy is not encouraging. In the past, proupturn in output and employment is not yet clear. grams designed to stimulate the economy during Any decision in that regard will depend on how a contraction frequently did not come on stream trends in real activity, inflation, and the mone- until well after the recovery was under way. If tary aggregates unfold. assessments of prospects for a turnaround in the economy this year are on target, the adoption of new programs now may only end up repeating FISCAL POLICY CONSIDERATIONS that pattern. The military operations in the Gulf will cause Until clear signs of a recovery in economic some unplanned addition to spending in the curactivity emerge, fiscal policymakers are likely to rent fiscal year. Defense purchases already have remain under persistent pressure to take actions been raised somewhat by the war, and, as weapto offset other contractionary forces. Concerns ons are replaced, the new production will boost about the appropriateness of maintaining a policy GNP. Current estimates suggest that a substanof fiscal restraint during a period of weak eco- tial part of the incremental expense ultimately Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 305 will be paid by other nations, cushioning the be altered, if deemed desirable, to improve effect on the budget deficit. Moreover, it is economic incentives or to reset priorities. Such important to bear in mind that the successful specific changes in fiscal policy tools are possiconclusion of the Gulf war now ensures that ble while still moving along a steady path these expenditures will be limited, with only toward fiscal balance. That path promises to minimal consequences for the thrust of longer- improve prospects for increased capital accuterm fiscal policy. mulation and higher productivity. It will com- On the whole, the budget accord provides a plement monetary policy in the attainment of useful framework for conducting fiscal policy the nation's overall economic objectives for the over the longer run. It provides sufficient flex- longer run. • ibility for specific tax and spending policies to Statement by Alan Greenspan, Chairman, Board reduced cost pressures on prices and provided of Governors of the Federal Reserve System, scope for a further easing of monetary policy last before the Joint Economic Committee, U.S. Friday. The combination of lower interest rates, Congress, March 13, 1991. the reduction in oil prices, and the resolution of the situation in the Gulf continue, on balance, to I am pleased to have the opportunity to appear suggest an upturn in real activity later this year, before you again. As you know, the Federal in line with the "central tendency" forecast of Reserve's semiannual "Monetary Policy Report the Federal Open Market Committee (FOMC) to the Congress" and testimony, which were members and other Reserve Bank presidents that submitted to the Congress last month, provided we presented a month ago. an extensive review of recent and prospective In discussing those projections, we stressed economic developments and of monetary policy the extent to which uncertainties associated both actions and intentions.1 Rather than take you with the situation in the Gulf and with several through the details of that report this morning, I unresolved problems in the economy made the would like, first, to focus on a few of the most outlook unusually difficult to assess; to a somecritical considerations affecting the outlook for the what lesser extent, that is still the case. Cereconomy and the formulation of monetary policy tainly, the successful end to the hostilities in the and, then, to turn briefly to budgetary issues. Gulf has removed a troublesome uncertainty and should provide some lift to consumer and business confidence. But the other factors that we THE ECONOMIC OUTLOOK AND noted earlier—concerns about credit availability and problems in real estate markets—continue to MONETARY POLICY restrain activity and to weigh importantly on business thinking. The recently available readings on business activity indicate that the economic contraction that The restraint on credit availability at deposibegan during the latter part of 1990 continued tory institutions represents a continuing clear through February. The economic data of the past risk to the outlook and, therefore, is a critical few weeks also included further indications of challenge for policy. To date, our assessment is that reduced demand for credit stemming from the decline in real activity accounts for most of the recent weakness in bank lending. Nonethe- 1. See "Monetary Policy Report to the Congress," Federal less, developments on the supply side also have Reserve Bulletin, vol. 77 (March 1991), pp. 147-64 and had a noticeable effect. The surveys of senior "Statement by Alan Greenspan, Chairman, Board of Governors of the Federal Reserve System, before the Committee loan officers that are conducted by the Federal on Banking, Housing, and Urban Affairs, U.S. Senate, Feb- Reserve at three-month intervals have shown ruary 20, 1991," Federal Reserve Bulletin, vol. 77 (April progressive tightening of business credit terms 1991), pp. 240-46. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

306 Federal Reserve Bulletin • May 1991 since last spring. Banks report that they have ing with other depository supervisory agencies to been applying more stringent credit standards identify and correct practices that may be unnecand have made the price and nonprice terms of essarily discouraging the flow of funds to creditbusiness credit less favorable to a wide range of worthy borrowers. Taken together, these steps customers. may well prove sufficient to foster the growth of Several factors underlie these changes in lend- credit needed to finance economic expansion. ing practices. Given the uncertain economic en- But we recognize the risk that problems in this vironment, banks are appropriately taking a area could persist and could warrant further closer look at prospective borrowers in some actions. specific industries. But what is of most concern Another clear negative in the outlook remains to us is restraint on lending by commercial bank- the real estate sector, whose problems have ers to otherwise creditworthy customers. For exacerbated the difficulties of financial instituborrowers whose riskiness has been essentially tions. In the commercial sector, the overhang of unaffected by the recession or by developments vacant space is still substantial, implying that in specific markets, the reluctance of banks to further declines in new construction will probalend seems to arise from attempts to bolster bly occur, even during a period of renewed capital positions. Banks are trying to raise capi- economic growth. Beyond the impact on new tal-asset ratios, or at least hold down declines in construction, the existence of a sizable stock of those ratios that might result from losses on underused properties whose asset values have outstanding loans. In some cases, loan losses and declined has repercussions for financial institupressures on capital may be exacerbated by the tions that are carrying them on their balance degree to which examination standards are forc- sheets. ing loans to be written down inappropriately or The most notable feature of the current downby market reaction to aggregated data on prob- turn has been the marked erosion of business lem credits on certain categories of loans. attitudes and consumer confidence that occurred Information from our surveys and estimates of after July. In the business sector, the clearest funds supplied in financial markets indicate that manifestation of the deterioration in attitudes the majority of those borrowers who have been was the rapidity with which producers moved to turned away or who have been discouraged from cut output and to pare inventories in response to borrowing at depository institutions have been actual or anticipated weakness in sales. Judging able to find financing elsewhere. But one must from readings of anticipated hiring, inventory assume that the alternatives, when they exist, are accumulation, and capital spending, businesses only available at a higher price. The problems of remained in this cautious stance early this year, locating other sources of credit may be especially awaiting firm indications of the timing and severe for some types of borrowers—small bus- strength of any recovery in demand. inesses and those in commercial real estate, for Consumer confidence also registered an uninstance—who may not have ready access to precedented plunge between July and October securities markets. How much production has last year, which probably was an element debeen lost as a result of sound projects cut back or pressing business expectations for sales. Such a unable to go forward because of a rise in fi- decline in sentiment also might have been exnancing costs or because of an actual or feared pected to result in a rise in precautionary saving. lack of financing is difficult to assess. But it is But, income growth also was depressed, and clear that the restraint on credit availability, when the sudden rise in oil prices forced housealong with the deterioration in profits, began to holds to devote a significantly higher share of enter importantly in business decisionmaking their disposable income to energy bills, both even before the onset of the recession. saving and spending, in real terms, were cut back Several steps that should relieve constraints on sharply. credit supplies have been taken by the Federal It would be most unwise to ignore the possi- Reserve. These steps include lowering interest bility that all or some combination of these rates, reducing reserve requirements, and work- negative factors could cause the contraction in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 307 economic activity to last longer or be more money market conditions. Because a lessening of serious than is currently anticipated. cost pressures has improved the outlook for Nonetheless, several elements appear to be prices, the easing of policy has been possible moving into place that should enhance prospects without raising new concerns in financial markets for recovery. On balance, when these positive about inflation prospects. Such concerns could forces are weighed with the negatives, the scales have had adverse consequences for the foreign appear to tip slightly in favor of suggesting that exchange value of the dollar and for long-term the current downturn might well prove milder interest rates. than most of the recessions in the past forty But, in the prevailing circumstances, the subyears. stantial drop in short-term market rates was One important factor on the positive side of the accompanied by a net decline in long-term rates outlook is the sharp drop in petroleum prices that as well. In particular, fixed-rate mortgage interaccompanied the onset of the war in the Gulf. est rates are near their lowest levels since the late The price of gasoline is back to its late-July level; 1970s, and the resulting improvement in the the cost of home heating oil should retreat further affordability of single-family housing eventually as well in coming months. While the secondary should show through in a pickup in sales and effects of the cutbacks in employment and in- homebuilding. Other sectors also are expected to come are still running their course, the relief respond to lower financing costs as the year from lower energy prices, along with the appar- progresses. Although long-term interest rates ent boost to confidence from the end of the Gulf have risen a bit in recent weeks, this rise should war, should be laying the groundwork for some not materially interfere with an upturn in activfirming in consumer spending in coming months. ity. The increase seems to reflect new optimism Indeed, in the days after the termination of about the prospects for the U.S. economy as the hostilities, the anecdotal reports of increased Gulf war has come to a successful conclusion. traffic in real estate offices and auto showrooms Indeed, yields on non-investment-grade bonds raise the possibility that stronger consumer de- actually declined in response to that expectation. mand may be emerging. But, I would caution that Since the onset of the recession last year, the such early signals can be quite difficult to read, areas of greatest concern in the economy have particularly at this time of the year. Typically, been those areas related to domestic spending, sales of houses and autos surge in March. For because it has been in those sectors—consumpexample, as the weather improves, sales of new tion, homebuilding, nonresidential construction, and existing homes register their sharpest month- and business inventory investment—that the to-month gains between February and March— dropoff in activity has been most pronounced. jumps of 35 percent and 25 percent respectively. Nonetheless, it is also important to consider how The usual over-the-month pickup in domestic car domestic production has been affected by trends sales also is sizable (almost 19 percent). What is in exports and imports in recent months and to difficult to judge from the very recent reports is assess prospects for sustained stimulus from net how much more than the seasonal rise, if any, is exports. occurring as psychology improves. Hard eco- Viewed at the manufacturing level, the sources nomic data for the period after the successful of changes in production can be examined by ground war will not be available for some weeks. combining monthly data on factory output, in- Another important influence that is expected ventories, and sales with data on international to provide support for economic activity as the trade flows. A comparison of the six-month peyear progresses is the decline in interest rates, riod before the downturn in industrial activity which began more than a year and a half ago but last October and the four months of contraction was especially sharp in the past few months. through January offers some interesting results. Since late October, when the budget accord was In the six months before the downturn, manureached and economic activity showed clear facturing production was rising at an annual rate signs of weakening, the Federal Reserve has of about 2Vi percent, boosted considerably by a moved aggressively in a series of actions to ease recovery in motor vehicle assemblies from the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

308 Federal Reserve Bulletin • May 1991 very low levels earlier in the year. Domestic of U.S. exports measured in terms of foreign demand for business equipment and for industrial currencies has fallen nearly 15 percent since materials also was relatively robust, although mid-1989; at the same time, the prices of goods rising imports drained some of that strength away produced abroad have been rising. In the past, from domestic producers. At the same time, such gains in U.S. price competitiveness have export demand was providing little impetus to led to significant growth in our exports, and if the manufacturing production. The slowdown in ex- recent improvement is sustained, continued exports of industrial goods marked a sharp depar- pansion of U.S. exports would seem to be on ture from the trend over the preceding four track. Even if growth abroad were to slow someyears, when the share of exports in our factory what, an increasing share of foreign markets output rose 5 percentage points to 133/4 percent. would provide considerable support for our ex- However, since the peak in industrial produc- ports. tion last September, the situation has reversed. Of course, the prospects for sustained strong Between last September and this January, there growth in our exports of goods and services has been a resumption of growth in foreign depend importantly on the outlook for economic demand for U.S.-manufactured goods and a re- activity among our trading partners as well. duction in domestic demand for imported manu- Among the major foreign industrial countries, factured products and materials, including oil. significant divergences in economic performance For example, imports as a proportion of our emerged last year and are likely to continue this overall domestic demand for manufactured year. Canada and the United Kingdom both goods stabilized late last year. When combined moved into recession in 1990, and signs of a with rising exports, net imports of industrial turnaround are not yet evident in either case. goods as a proportion of manufacturing produc- In contrast to the weakness in those two tion declined from about 4 lA percent late last countries, activity remains vigorous in Germany, summer to less than 4 percent at the turn of the where the stimulus of reunification between East year. These developments have cushioned the and West Germany has produced rapid real steep declines that have occurred as production growth and has sustained very high rates of has responded unusually promptly to the weak- utilization in industry in the western region. ness in the domestic economy. Cutbacks in do- Indeed, the continued strength of aggregate demestic purchases and inventory holdings of a mand in Germany has been a major cause of wide range of domestically manufactured con- recent upward movements in German interest sumer goods, business equipment, construction rates. In Japan, despite some indications of a supplies, and industrial materials have more than moderation in economic growth, prospects for a accounted for the drop of almost 4 percent (not continued expansion are still favorable. On balannualized) in manufacturing industrial produc- ance, it is quite possible that growth among our tion between September and January. major industrial trading partners will strengthen The brisk expansion in nonagricultural mer- somewhat later this year, particularly if those chandise exports late last year occurred in a countries experiencing recession start to revariety of industrial supplies and materials, as cover. well as in consumer goods and many types of Among developing countries, recent economic capital equipment. The sharpest gains were in performance has been uneven as well. Mexico shipments destined for countries in Western Eu- continues to achieve success in maintaining rope. This increase in export growth came de- growth while pursuing economic reforms. Howspite a weakening of activity in several of our key ever, in other Western Hemisphere countries, markets abroad, and it undoubtedly reflected the slowdown or even recession has accompanied gains in U.S. international price competitiveness current programs aimed at macroeconomic stathat had been building for some time. bilization. The crisis in the Persian Gulf has As a result of the decline in the foreign ex- disrupted output for some Middle East countries change value of the dollar and only moderate but has permitted other developing-country exincreases in U.S. export prices, the average price porters of oil to expand. In the period ahead, the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 309 reconstruction in the Middle East is likely to Any decision in that regard will depend on how provide a significant boost to the exports of the trends in real activity, inflation, and the mone- United States and of several other industrial tary aggregates unfold. countries. The Gulf war has been overshadowing developments elsewhere, particularly in Europe, and FISCAL POLICY CONSIDERATIONS in the sphere of international trade negotiations; these factors have potentially important impli- Until clear signs of a recovery in economic cations for both the U.S. economy and the activity emerge, fiscal policymakers are likely to economies of our major trading partners. As the remain under persistent pressure to take actions Western European economies move closer to to offset other contractionary forces. Concerns the 1992 single internal market, they will benefit about the appropriateness of maintaining a policy from structural adjustment and increased com- of fiscal restraint during a period of weak ecopetition. A stronger, more vibrant European nomic performance are understandable. Howeconomy in the long run will be a more vigorous ever, they must be balanced against the benefits trading partner for the U.S. economy. In addi- that will flow from adhering to a budget strategy tion, progress in the historic transformation of that is geared to the longer-run needs of the the economies of Eastern Europe can be ex- economy. Those needs can best be met by keeppected to lead to new opportunities for U.S. ing the underlying or "structural" deficit firmly producers of consumer and capital goods. As on a downward path, even as the actual deficit is these economies become more fully integrated being swollen temporarily by the effects of a into the world trading order, they will broaden weak economy. opportunities for two-way trade with mutual In light of these considerations, voting to susbenefits to all. pend the enforcement provisions of the budget The focus on our export prospects highlights reconciliation act would be a mistake. Together the importance of a successful conclusion to the with the Administration, you worked long and Uruguay Round of trade negotiations. Indeed, hard last year to reach an acceptable package of the costs of a failure of that effort could be tax and spending changes and budget process serious. We all would lose opportunities to reforms. The budget agreement gave financial strengthen trade flows and realize efficiencies markets some assurance of stability and of a that could enhance standards of living world- future easing of federal credit demands. Underwide. It certainly would be unfortunate if, in- cutting this commitment now risks adverse efstead, moves toward protectionism elicited retal- fects on long-term interest rates and thus might iation, which would have particularly adverse well be self-defeating. consequences for U.S. producers just when their The new budget procedures make it easier than competitive position is so strong. under the previous Gramm-Rudman-Hollings Taken together, the favorable factors at work procedures for fiscal policy to have a stabilizing abroad and the stimulative forces in train in the effect on the economy. Among other things, domestic economy suggest the likelihood of a because the focus over the next several years is pickup in aggregate demand over coming on the reduction in the deficit brought about by months. And, with inventories relatively lean at legislative action, rather than the level of the most businesses, a recovery in demand should deficit per se, the need for policy adjustments to show through fairly promptly in a higher level of offset the effects of changes in economic condiproduction. tions has been eliminated. As a consequence, the Our monetary policy objective for 1991 is to automatic stabilizers that are in place can funcpromote economic recovery and to sustain tion as intended. growth at a rate that is consistent with progress Moreover, the historical evidence on the impleover time toward price stability. Whether further mentation of discretionary countercyclical fiscal adjustments to policy will be required to foster an policy is not encouraging. In the past, programs upturn in output and employment is not yet clear. designed to stimulate the economy during a con- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

310 Federal Reserve Bulletin • May 1991 traction frequently did not come on stream until war now ensures that these expenditures will be well after the recovery was under way. If assess- limited, with only minimal consequences for the ments of prospects for a turnaround in the econ- longer-term thrust of fiscal policy. omy this year are on target, the adoption of new On the whole, the budget accord provides a programs now may only end up repeating that useful framework for conducting fiscal policy. pattern. It provides sufficient flexibility for specific tax The military operations in the Gulf will cause and spending policies to be altered, if deemed some unplanned addition to spending in the cur- desirable, to improve economic incentives or to rent fiscal year. Defense purchases already have reset priorities. Such specific changes in fiscal been raised somewhat by the war, and, as weap- policy tools are possible while still moving ons are replaced, the new production will boost along a steady path toward fiscal balance. That GNP. Current estimates suggest that a substantial path promises to improve prospects for inpart of the incremental expense ultimately will be creased capital accumulation and higher propaid by other nations, cushioning the effect on the ductivity. It will complement monetary policy budget deficit. Moreover, it is important to bear in in the attainment of the nation's overall ecomind that the successful conclusion of the Gulf nomic objectives for the longer run. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

311 Announcements POLICY TO REDUCE IMPEDIMENTS REGULATION P: REVISIONS TO LENDING BY BANKS AND THRIFT INSTITUTIONS The Federal Reserve Board announced on March TO CREDITWORTHY BORROWERS 25, 1991, revisions to Regulation P (Minimum Security Devices and Procedures for Federal A series of supervisory steps designed to reduce Reserve Banks and State Member Banks). The impediments to lending by banks and thrift insti- revisions become effective May 1, 1991. tutions to creditworthy borrowers was announced The revisions update the current rules adopted on March 1, 1991, by the federal bank and thrift in 1969, simplify and clarify the rule's existing supervisors. The agencies issuing a statement on areas of flexibility, eliminate many obsolete or the changes are the Office of the Comptroller of technical requirements, particularly those in apthe Currency, the Federal Deposit Insurance Cor- pendix A, and delete references to required reporation, the Federal Reserve Board, and the ports after elimination of reporting requirements Office of Thrift Supervision. in this area by the Financial Institutions Reform, In announcing the changes, the agencies said Recovery, and Enforcement Act of 1989. that the intent of this effort is to contribute to a The revisions do not otherwise substantively climate in which banks and thrift institutions will change the regulation, which is already relatively make loans to creditworthy borrowers and work brief and flexible, and add no new regulatory constructively with borrowers experiencing fi- burden. nancial difficulties in ways that are consistent with safe and sound banking practices. The joint policies clarify that the supervisory PROPOSED ACTIONS evaluation of real estate loans is based on the ability of the collateral to generate cash flow over The Federal Reserve Board issued for public time, not on its immediate liquidation value; comment on March 6, 1991, proposed enhancethese policies encourage banks to disclose addiments to certain Federal Reserve Bank services tional information about nonaccrual loans, to and proposed new services related to checks not make sound loans to creditworthy borrowers, collected through the Federal Reserve. Comand to facilitate the workout of problem loans. ments are due by June 28, 1991. The agencies are also considering the merits of proposed guidelines that address the accrual of income on certain loans that have been partially charged off. The agencies and the Securities and CHANGES IN BOARD STAFF Exchange Commission (SEC) will both solicit public comment on the proposed guidelines. Any The Board of Governors announced on March formal guidance issued will be based on the 28, 1991, the appointment of Kathleen M. O'Day comments received from the public and ongoing to the official staff as Assistant General Counsel. discussions between the agencies and the SEC. She will assist the Legal Division on international The supervisory statements and clarifications banking issues, including managing cases arising will be sent to field examiners and supervisory under the International Banking Act and the personnel. Bank Holding Company Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

312 Federal Reserve Bulletin • May 1991 In addition, the Board of Governors an- for 1989 and 1990; it is also available from nounced the promotion of Scott G. Alvarez from Publications Services. Assistant General Counsel to Associate General Counsel. Mr. Alvarez will continue to be responsible for the Banking Structure Program in the ANNUAL STATISTICAL DIGEST, 1980-89: Legal Division. PUBLICATION Ms. O'Day joined the Board's staff in 1978 as an attorney. She was promoted to Senior Coun- The Annual Statistical Digest, 1980-89 is now sel in 1983. Ms. O'Day holds a B.A. from As- available. This ten-year Digest is designed as a sumption College and a J.D. from Boston College compact source of economic, and especially fi- Law School. nancial, data. The Digest provides a single source of historical continuations of the statistics carried regularly in the Federal Reserve Bulletin. This issue of the Digest covers 1980-89. It ANNUAL REPORT: PUBLICATION serves to maintain the historical series first published in Banking and Monetary Statistics, 1941- The 77th Annual Report, 1990, of the Board of 1970, and the Digest for 1970-79 and yearly Governors of the Federal Reserve System, cov- issues thereafter. A Concordance of Statistics ering operations for the calendar year 1990, is will be included with all orders. The Concoravailable for distribution. Copies may be ob- dance provides a guide to tables that cover the tained on request to Publications Services, same material in the previous two years' issues Board of Governors of the Federal Reserve of the Digest, the ten-year Digest for 1980-89, System, Washington, D.C. 20551. A separately and the Bulletin. printed companion document, entitled Annual Copies of the Digest at $25.00 each are avail- Report: Budget Review, 1990-91, describes the able from Publications Services, Board of Govbudgeted expenses of the Federal Reserve Sys- ernors of the Federal Reserve System, Washingtem for 1991 and compares them with expenses ton, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

313 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON FEBRUARY 5-6,1991 season, consumer spending in real terms was soft in the fourth quarter. Outlays for goods were consider- 1. Domestic Policy Directive ably below the levels seen earlier in the year, and while spending for services rose further, the fourth- The information reviewed at this meeting suggested quarter gain was well below that recorded in previous that economic activity had weakened further. A quarters. Total private housing starts declined persisting low level of consumer confidence, related substantially further in the fourth quarter; sales of partly to the uncertainties surrounding the Persian new homes remained weak through year-end, and Gulf situation, and reduced real disposable incomes home prices continued to slip. continued to depress consumer demand; and busi- Shipments of nondefense capital goods were about ness investment spending, especially for structures, unchanged in the fourth quarter. Aircraft purchases remained in a downtrend. With businesses attempt- remained at the robust third-quarter level, while ing to maintain tight control over inventories as business outlays for motor vehicles dropped sharply demand weakened, industrial production and non- after a third-quarter spike in fleet sales. Outside the farm payroll employment had declined sharply. transportation sector, equipment spending advanced Broad measures of prices indicated some moderation appreciably, mainly reflecting strong increases in of inflation toward the end of 1990, largely as a spending for computers. New orders for business result of lower energy prices. The latest data equipment pointed to a softening in spending for suggested some deceleration in wages and overall such goods in coming months. Available data labor costs. indicated that nonresidential construction activity Total nonfarm payroll employment fell sharply in fell sharply in the fourth quarter. In a period of weak January, and a larger drop than previously reported sales, total manufacturing and trade inventories, was now indicated for December. The contraction in measured on a constant-cost basis, increased a little employment in January was especially heavy in the further on balance over October and November, and construction sector, only partly reflecting unseason- the ratio of stocks to sales rose only slightly, ably wet weather in some sections of the country, reflecting strong efforts by businesses to keep and widespread job losses were registered in inventories in line with sales. manufacturing, notably in durable goods. The In the October-November period, strong exports civilian unemployment rate edged higher in January cushioned to some extent the drop in production and to 6.2 percent. output in the United States; nonagricultural exports Industrial output declined markedly in the fourth were up substantially over the third-quarter average, quarter, and partial data suggested a further drop for with substantial increases recorded in all major trade January. A sizable portion of the reduction reflected categories except aircraft and computers. Despite cutbacks in the production of motor vehicles, but the strength in exports, the nominal U.S. merchanoutput also was down in most other industries. dise trade deficit for the two months combined was at Declines in production were especially large for a higher rate than in the third quarter because of computers, construction supplies, and a wide range rising oil prices, which brought a sharp increase in of non-auto consumer durables. Capacity utilization the value of oil imports. Growth in most major in manufacturing continued to fall in December; in foreign industrial countries appeared to have slowed most industries, operating rates were down substan- somewhat in the fourth quarter. In many of these tially from their recent peaks and from their longer- countries, lower oil prices late in the year had run averages. brought some moderation in consumer price inflation. Partly reflecting lackluster sales during the holiday Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

314 Federal Reserve Bulletin • May 1991 In December, a sizable decline in producer prices sluggish, and inflation pressures were abating. In of finished goods more than offset the November this instance, open market operations permitted the rise, as prices of both food and energy products full reduction in the discount rate to be reflected in moved sharply lower. For other finished goods, money market rates. Adjustment plus seasonal producer prices increased in the fourth quarter at borrowing fluctuated widely over the intermeeting about the moderate pace evident in the three previous period; borrowing was well above expected levels quarters. Lower oil prices and a slowing in food during much of the period as banks adapted to the price increases also damped the rise in consumer phase-out of the reserve requirement on nonpersonal prices in December. Excluding the food and energy time deposits and net Eurocurrency liabilities; the components, consumer inflation was a little lower phase-out reduced required reserve balances to on balance in November and December than in levels that at times proved to be insufficient for the earlier months of 1990. Total compensation costs of clearing needs of many banks. private industry workers rose more slowly in the The federal funds rate averaged around 1XA perfourth quarter and also increased a bit less for the cent just before the December meeting. Late in the year than in 1989. intermeeting period, after the two cuts in the discount At its meeting on December 18, the Committee rate and the monetary easing through open market adopted a directive that called for an initial slight operations, the federal funds rate averaged a little reduction in the degree of pressure on reserve above percent. Over the intermeeting period, positions and for giving particular weight to potential however, the funds rate was unusually volatile; key developments that might require some further easing factors behind this volatility included the phase-out later in the intermeeting period. To reflect the tilt of the nontransaction reserve requirement, balancetoward further easing, the directive indicated that, sheet adjustments undertaken near year-end, and subsequent to the initial move, somewhat lesser some reserve projection misses near the ends of reserve restraint would be acceptable, or slightly maintenance periods. Other short-term interest rates greater reserve restraint might be acceptable, during also fell considerably over the intermeeting period; the intermeeting period depending on progress private money market rates declined more than toward price stability, the strength of the business Treasury bill rates, reflecting a reduction in the expansion, the behavior of the monetary aggregates, pronounced risk premiums that had been built into and developments in foreign exchange and domestic private short-term rates ahead of year-end. Yields in financial markets. The Committee also noted that longer-term markets were unchanged to down open market operations might need to take account slightly, and broad indexes of stock prices rose of a possible reduction in the discount rate early in appreciably on balance over the period. the intermeeting period. The contemplated reserve In foreign exchange markets, the trade-weighted conditions were expected to be consistent with value of the dollar in terms of the other G-10 expansion of M2 and M3 over the period from currencies advanced in the early part of the inter- November through March at annual rates of about 4 meeting period as market participants sought a safe and 1 percent respectively. haven for their funds in the face of diminishing Immediately after the Committee meeting, the prospects for a peaceful settlement in the Persian Board of Governors approved a reduction in the Gulf region. The dollar also was buoyed, especially discount rate from 7 to 6V2 percent; afterwards, against the German mark, by market perceptions open market operations were directed at allowing that political conditions were deteriorating in the part of this decline to show through to short-term Soviet Union. The early successes of the Allied interest rates more generally. Another easing step forces in the Gulf war brought a reduction in safewas taken in early January in response to weak haven demands, and the dollar began to decline in money growth and considerable softness in the the latter half of January. After an increase in the economy. Subsequently, on February 1, the Board German Bundesbank's official lending rates and the approved a further reduction in the discount rate to reduction the next day in the Federal Reserve's 6 percent; this action was taken in response to discount rate, the dollar dropped sharply. On indications that economic activity was slackening balance, the dollar was down somewhat over the further, growth in money and credit continued intermeeting period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee 315 Growth of M2 remained sluggish in December In the Committee's review of economic developand January, running at a pace below the path ments, members commented that the outbreak of expected by the Committee; expansion of M3 picked war in the Persian Gulf region had heightened the up in January from the very slow pace of previous already substantial uncertainties bearing on the months. The continuing weakness in M2 despite an outlook for the economy. A relatively mild recession appreciable narrowing in opportunity costs ap- followed by a moderate upturn in economic activity peared to reflect in part heightened concerns about was still regarded as a reasonable expectation, the financial condition of many depository institu- assuming that the war would not be prolonged and tions in the wake of the closing of privately insured that oil prices would remain at substantially reduced banks and credit unions in Rhode Island and the levels. However, the risks clearly were on the failure of the Bank of New England. For the year downside, and a very sluggish recovery or indeed a 1990, M2 and M3 grew at rates in the lower portions deep and relatively long recession could not be ruled of the Committee's ranges. Expansion of total out. Business and consumer confidence, a critical domestic nonfinancial debt appeared to have been factor underlying the economic outlook, already near the midpoint of its monitoring range for the was quite negative and was subject to further erosion year. stemming from financial strains and credit con- The staff projection prepared for this meeting, straints in the domestic economy as well as from which was assembled against the background of the unpredictable developments in the Middle East. On outbreak of hostilities in the Persian Gulf region, the positive side, members saw growing indications pointed to some further decline in economic activity of some moderation in underlying inflation presin the near term. The length and intensity of the war sures; and in light of the increasing slack in labor and was a matter of conjecture, but the projection was capital markets and the slower growth of money based on the assumption that the war would end over a period of years, they believed that considerwithin the next few months and would have little able progress in reducing inflation was likely to be further effect on world oil supplies and the level of made in the year ahead. oil prices. The projection also assumed that con- In conformance with the practice at meetings straints on the supply of credit would persist to some when the Committee establishes its long-run ranges degree through the rest of the year. In the near term, for growth of the money and debt aggregates, the concerns emanating from the war, reduced credit Committee members and the Federal Reserve Bank availability, and financial fragility were expected to presidents not currently serving as members had continue to damp consumer and business confidence prepared projections of economic activity, the and, by depressing private domestic demand, to unemployment rate, and inflation for the year 1991. push manufacturing activity still lower. Subse- For the period from the fourth quarter of 1990 to the quently, economic growth was expected to resume fourth quarter of 1991, the forecasts for growth of in association with the support provided by further real GNP had a central tendency of % percent to gains in exports, the stimulative effects of sharp IV2 percent. These forecasts assumed an upturn in declines in oil prices and short-term interest rates, economic activity later in the year and subsequent and some improvement in consumer and business expansion at a pace that was consistent with sentiment as the war drew to a close. Increases in continued progress toward price stability. Estimates business orders and sales could be expected to bring of the civilian rate of unemployment in the fourth a prompt pickup in production, given lean invento- quarter of 1991 were concentrated in a range of 6V2 ries, and with some lag a rise in business spending percent to 7 percent. On the assumption that oil for investment goods other than commercial struc- prices would remain near their recent levels and in tures; severe problems of excess supply were the context of reduced pressures on resources, all of expected to inhibit any recovery in commercial the members expected a sizable decline in the rate of construction for an extended period. With oil prices inflation from the pace in 1990; as measured by the lower and some added slack expected in resource consumer price index, the central tendency of their utilization, the staff projected a slowing in the pace projections was in a range of 3 lA percent to 4 percent of increases in prices and labor costs in coming for the year, compared with an actual rise of quarters. 6VA percent in 1990. Forecasts of growth in nominal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

316 Federal Reserve Bulletin • May 1991 GNP had a central tendency of 3% percent to Turning to current and prospective developments 5 V* percent. in different parts of the country and sectors of the In their comments about the prospects for business economy, members reported further indications of activity, the members gave considerable attention to some softening in business conditions in several the uncertainties and concerns that were exerting a regions, including areas where business activity depressing effect on business and consumer confi- previously had been relatively well maintained in dence. The rapidly evolving situation in the Middle comparison with national trends. Much of the East undoubtedly was contributing an element of weakness tended to be concentrated in manufacturcaution to spending plans, but the problems of many ing, primarily the production of motor vehicles and financial institutions and the financial difficulties of associated inputs and of other durable goods, and in heavily indebted business firms and individuals were construction. At the same time, however, there were adding to the generally somber economic climate. indications that business conditions were no longer Not only had financial problems affected attitudes, deteriorating in some areas and might indeed be but constraints on the availability of credit to many improving somewhat with attendant gains in local borrowers with limited or no access to alternative business confidence. The outbreak of war seemed to sources of financing were having a retarding effect be having little effect thus far on overall domestic on business activity and could limit the vigor of the manufacturing activity, though some firms were expected expansion. Many financial problems were reported to have increased their production of the legacy of financial excesses of the past decade, defense-related goods. notably those associated with the financing of The prospects for consumer spending remained speculative real estate ventures and highly leveraged the key uncertainty in the outlook for overall ecorestructurings of business firms. While some nomic activity. It was unclear at this point how progress was being made in addressing such prob- consumers would respond to unfolding developlems, a good deal of time undoubtedly would be ments in the Middle East. There were widespread needed before many troubled lending institutions reports that retail sales had dropped sharply after the again became important suppliers of new credit and outbreak of hostilities in mid-January, but that before many business firms were able to access development seemed to represent at least in part a credit sufficient to support increases in spending. temporary reaction associated with the diversion of Such financial difficulties were likely to have attention to the reporting of military events. Indeed, continuing effects on business and consumer atti- there were indications or at least expectations among tudes and to constrain business activity to some businessmen that consumer behavior would return extent even if there were a relatively prompt end to to a more normal pattern, though perhaps tending to the hostilities in the Middle East. Nonetheless, the weak side, in the period ahead. For the present, members pointed to a number of promising develop- however, consumer sentiment clearly remained ments bearing on the prospects for the economy, depressed, and many anxious consumers seemed notably the substantial declines that had occurred in unwilling, or at least reluctant, to make discretionary interest rates, including key long-term rates, the purchases. As a consequence business contacts, sharp drop in oil prices, and the improved competi- such as those in the motor vehicles industry, tive position of U.S. businesses in world markets remained concerned about the outlook for sales at stemming from the depreciation of the dollar. least for the nearer term. Over time, the end of Members also noted that despite the generally hostilities in the Middle East would improve negative sentiment in the business community and consumer confidence, and the drop in oil prices, if among many consumers, the performance of the sustained, would have a positive effect on consumer stock market, including the shares of banking purchasing power. organizations, had been surprisingly strong; while A significant rebound in consumer spending was such a development had to be interpreted with likely to be followed fairly promptly by increased caution in terms of its implications for future production of consumer goods, given generally lean business activity, it suggested that many investors business inventories, and with some lag by greater viewed the economic outlook with some degree of output of producer equipment. At the same time, optimism. construction activity would probably remain de- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee 317 pressed in light of the high vacancy rates in existing many business firms. The members recognized that commercial structures across the country and the the effects of earlier declines in the dollar on the weakness in residential real estate markets in many prices of imported goods and competing domestic areas. Construction expenditures by state and local products would tend to maintain some upward governments also appeared likely to be restrained, pressure on the overall price level for a time; given the financial problems of many of these however, they assumed for the purpose of their governments, but members noted that some major forecasts that there would not be any further change public works projects had been financed or were in the value of the dollar of a magnitude that would under way in a few areas. affect domestic prices over the projection horizon Members continued to anticipate further expan- and that oil prices would remain near recent lower sion in exports stemming importantly from the levels. nation's improved competitive position associated Against the background of the members' views on with the substantial decline in the foreign exchange the economic outlook and in keeping with the value of the dollar. Views differed to some extent, requirements of the Full Employment and Balanced however, with regard to the strength and potential Growth Act of 1978 (the Humphrey-Hawkins Act), contribution of the export sector to domestic eco- the Committee reviewed the ranges for growth of the nomic activity. Some members stressed that rela- monetary and debt aggregates in 1991 that it had tively depressed economic conditions in a number of established on a tentative basis in July 1990. The major foreign industrial nations were likely to limit tentative ranges included expansion of 2lA percent to U.S. exports to those countries. Moreover, develop- 6Vz percent for M2 and 1 percent to 5 percent for ments in the Middle East already had curbed foreign M3, measured from the fourth quarter of 1990 to the sales of some domestic goods, notably agricultural fourth quarter of 1991. The monitoring range for products. At the same time, many manufacturing growth of total domestic nonfinancial debt had been firms continued to report receptive export markets, set provisionally at AVz percent to 8^2 percent for and production for such markets was helping to 1991. The ranges for M2 and nonfinancial debt offset weakness in domestic demand. However, a involved reductions of Vi percentage point from substantial further decline in the foreign exchange those that were reaffirmed in July for the year 1990; value of the dollar would not be a welcome the M3 range for 1990 had been lowered by development; such a decline, should it occur, might 1 Vi percentage points in July and no further reduction well foster higher domestic bond yields and could had been made in the tentative M3 range for 1991. give rise to protectionist reactions abroad to the In the Committee's discussion of the ranges for detriment of further gains in U.S. exports. 1991, which mainly focused on M2, most of the With regard to the outlook for inflation, the members indicated a preference for affirming the members saw favorable prospects for considerable ranges that had been established on a tentative basis progress in the year ahead. There were growing in July. Insofar as could be judged under present indications that the core rate of inflation would trend circumstances, the tentative ranges offered in this down. Currently available statistics might not yet be view the best prospects of balancing and accommofully capturing the extent of the underlying improve- dating the Committee's objectives of a prompt ment in inflation, though it already was clear that recovery in business activity and continuing progress some downward adjustment was occurring in the toward reducing inflation. Many of the members crucial area of wages. With regard to future conceded that in light of the current uncertainties prospects, several members stressed that the slowing surrounding the relationship between money growth in monetary growth over a period of years was likely and economic performance, somewhat higher or to be reflected increasingly in lower inflation. The somewhat lower ranges also were defensible. For slack in labor and capital resources probably would example, it was unclear to what extent the relatively have a restraining effect on underlying inflation slow growth of M2 in relation to that of nominal pressures over the next several quarters. Evidence income, allowing for the effects of movements in of such a development included indications of strong interest rates, would persist during the year ahead; a competition in markets for a wide range of products return to a more normal pattern in this relationship and reports of adjustments in the pricing policies of would have a substantial effect on the rate of M2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

318 Federal Reserve Bulletin • May 1991 growth that was consistent with a satisfactory eco- incorporated a substantial reduction from the M3 nomic performance. The Committee needed to be ranges of previous years. The members anticipated prepared to revise those ranges at midyear as interim that growth of M3 would remain below that of M2 as economic or financial developments might warrant. a consequence of the continuing restructuring of Members also noted the risk that market participants thrift depository institutions this year and the might misinterpret the implications of any changes likelihood of restrained growth in bank credit. Howin the ranges for the conduct of monetary policy ever, the effect on overall credit growth seemed during the year. Increasing the ranges could raise likely to be attenuated by the continuing rechanneling questions about the System's commitment to its of credit extensions through financial markets or anti-inflationary goals, while lowering them, espe- lenders other than depository institutions. In the cially in the context of already weak money growth, circumstances, a relatively low range for M3 was could lead to concerns about the System's objective expected to prove consistent with the Committee's of fostering an upturn in business activity. Moreover, goals for the economy. a reduction in the M2 range might have to be All of the members found acceptable the monitorreversed later if the behavior of money resumed a ing range of 4V2 percent to 8V2 percent that the more normal pattern in relation to income; such a Committee had established on a provisional basis for reversal would interrupt the Committee's practice of growth of total domestic nonfinancial debt in 1991. gradually reducing its growth ranges and could have That range, which represented a further step in a adverse repercussions on the credibility of the series of annual reductions, took into account the System's anti-inflationary policy. Accordingly, most prospect that federal borrowing was likely to be of the members concluded that the tentative range robust in 1991, owing in part to borrowing associated for M2, which already incorporated a reduction with outlays by the Resolution Trust Corporation from 1990, represented an appropriately balanced but more generally to the likely weakness of federal approach, based on current expectations with regard revenues in a year of relatively sluggish economic to the behavior of velocity, to promoting the activity. On the other hand, growth in borrowing by Committee's objectives. domestic nonfederal sectors was expected to moder- Expressing a differing opinion, two members ate. Demands for credit would be held down by indicated that they preferred a somewhat higher limited expansion in domestic spending and the range for M2, in part to provide a better signal of the increased caution on the part of both businesses and System's determination to cushion the recession and households in taking on debt, while the terms and foster a quick recovery in business activity. The conditions set by many suppliers of credit would midpoint of the higher range would call for some remain tight. make-up of the shortfall in M2 growth from the At the conclusion of the Committee's discussion, midpoints of the ranges established for this aggregate all but one of the members indicated that they in recent years. Moreover, growth of M2 at or near favored or could accept the ranges for 1991 that the the bottom of the tentative range would pose an Committee had established on a tentative basis at its unacceptable risk of inadequate monetary stimulus meeting in July 1990. In keeping with the Committhat could fail to cushion possible further deteriora- tee's usual procedures under the Humphrey-Hawktion in the economy. On the other hand, a preference ins Act, the ranges would be reviewed at midyear, or was expressed for a somewhat lower range to sooner if deemed necessary, in light of the behavior underline the System's commitment to price stability. of the aggregates and ongoing economic and finan- The midpoint of such a range would not imply a cial developments. The Committee approved the change from the average growth of recent years, and following paragraph for inclusion in the domestic the upper end would trigger a prompter policy policy directive: response should the recovery be stronger than anticipated with potential inflationary implications. The Federal Open Market Committee seeks monetary and financial conditions that will foster price stability, With regard to M3, all of the members favored promote a resumption of sustainable growth in output, adoption of the tentative range that had been set and contribute to an improved pattern of international provisionally in July. While that range was un- transactions. In furtherance of these objectives, the changed from that for 1990, as revised at midyear, it Committee at this meeting established ranges for growth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee 319 of M2 and M3 of 2Vi to 6V2 percent and 1 to 5 percent, need for further easing moves, the members agreed respectively, measured from the fourth quarter of 1990 to that for now it was desirable to pause and assess the the fourth quarter of 1991. The monitoring range for course of the economy and the effects of past policy growth of total domestic nonfinancial debt was set at AXA actions. to 8V2 percent for the year. With regard to M3, the As they had at other recent meetings, many of the Committee anticipated that the ongoing restructuring of thrift depository institutions would continue to depress its members expressed concern about the very sluggish growth relative to spending and total credit. The behavior expansion of M2 and M3 over the past several of the monetary aggregates will continue to be evaluated months. This weakness in monetary growth in turn in the light of progress toward price level stability, appeared to be associated with the current constraints movements in their velocities, and developments in the on the availability of credit from depository institueconomy and financial markets. tions and the shortfalls in aggregate spending and income. According to a staff analysis prepared for Votes for this action: Messrs. Greenspan, Corrigan, this meeting, a steady policy course was likely to be Angell, Black, Keehn, Kelley, LaWare, Mullins, Parry, and Ms. Seger. Vote against this action: Mr. Forrestal. consistent with some acceleration in monetary growth over the first quarter because earlier declines Mr. Forrestal dissented because he wanted to in market interest rates had reduced the opportunity retain the 1990 range of 3 to 7 percent for M2 growth costs of holding deposit accounts, and the staff in 1991. He was concerned that monetary growth in assumed some strengthening of aggregate spending 1990 was the lowest since monetary targeting began. over the balance of the quarter. The incomplete data Moreover, in the current recessionary environment, available thus far for the latter part of January tended the 3 to 7 percent range with its somewhat higher to support this staff analysis. The members recogminimum growth rate would provide a better basis nized that the short-run behavior of these monetary for conveying and implementing the Committee's measures needed to be interpreted with caution and goals of fostering a prompt upturn in economic that easing reserve conditions too much would incur activity and subsequent expansion at a sustained and the risk of stimulating a sharp rebound in monetary acceptable pace. In addition, the midpoint of this growth and in inflationary pressures once the ecorange appeared to be consistent with continued nomic recovery had gathered some momentum. progress toward price stability. Nonetheless, several members emphasized the desirability of giving relatively high priority to In the Committee's discussion of policy for the achieving satisfactory rates of growth in reserves intermeeting period ahead, all of the members and money, especially under prevailing economic endorsed a proposal to maintain unchanged condiand financial conditions. tions in reserve markets, at least initially, following this meeting. In reaching their decision, members In the course of the Committee's consideration of took into account the considerable easing of mone- possible intermeeting adjustments to the degree of tary policy that had been implemented in a series of reserve pressure, most of the members expressed a steps over the course of recent months, including the preference for continuing to tilt the directive toward reduction in the discount rate and related decrease in possible easing during the weeks ahead. In this money market interest rates within the last few days. view, the downside risks to the economy and the The System's policy actions, in the context of a potential for inadequate monetary growth made it weakening economy and moderating cost pressures, likely that any intermeeting adjustment would be in had induced a considerable decline in interest rates, the direction of easier reserve conditions. Several but sufficient time had not yet elapsed for the effects members also noted that the Committee needed to of the lower rates to be felt in the economy or indeed place a high premium on avoiding any tendency for to any measurable extent in the growth of the the weakness in the economy to cumulate because monetary aggregates. A number of members also they were more concerned about the severe consecommented on the possibility that further easing so quences of a potentially deep and prolonged recessoon after the recent policy moves could result in sion than those of a sharp rebound in the economy, undesirable downward pressure on the dollar in especially given current financial strains and fragiliforeign exchange markets. In these circumstances, ties in the economy. Accordingly, the Committee while views differed with regard to the potential should be willing to ease in response to evidence of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

320 Federal Reserve Bulletin • May 1991 additional weakness in the economy and abatement soft. Advance indicators of business capital spending of inflationary pressures; the need for further easing point to considerable weakness in investment in coming months. Residential construction has declined substanmight be signaled in part by a continuing shortfall in tially further in recent months. The nominal U.S. monetary growth. In following such a policy, howmerchandise trade deficit narrowed in November, as the ever, a number of members stressed that the value of imports declined more than that of exports; the Committee would need to be prepared to tighten average deficit for October and November exceeded that policy promptly down the road in the event that for the third quarter. Increases in consumer prices inflationary pressures should threaten to re-emerge. moderated and producer prices changed little in November and December, largely as a result of a softening in energy A few members, while acknowledging the potential prices. The latest data suggest some further deceleration need for some easing, preferred not to bias the in wages and overall labor costs. directive in either direction. In this view, there were Short-term interest rates have fallen considerably since considerable risks of overreacting to indications of a the Committee meeting on December 18, while rates in weakening economy, particularly since conditions longer-term markets are unchanged to down slightly. The for a recovery in economic activity already appeared Board of Governors approved a reduction in the discount to be in place and weak data for the period at the start rate from 7 to 6V2 percent on December 18 and a further reduction to 6 percent on February 1. In foreign exchange of the Persian Gulf war might well reflect what markets, the trade-weighted value of the dollar in terms of would prove to be a short-lived development. the other G-10 currencies has declined somewhat on At the conclusion of the Committee's discussion, balance over the intermeeting period. all of the members indicated that they favored a Growth of M2 remained sluggish in December and directive that called for maintaining the existing January; expansion of M3 picked up in January from the very slow pace of recent months. For the year 1990, M2 degree of pressure on reserve positions. They also and M3 expanded at rates in the lower portions of the noted their preference or acceptance of a directive Committee's ranges for the year. Expansion of total that gave special weight to potential developments domestic nonfinancial debt appears to have been near the that might require some easing during the intermeet- midpoint of its monitoring range for the year. ing period. Accordingly, the Committee decided The Federal Open Market Committee seeks monetary that slightly greater reserve restraint might be and financial conditions that will foster price stability, promote a resumption of sustainable growth in output, acceptable during the intermeeting period or someand contribute to an improved pattern of international what lesser reserve restraint would be acceptable transactions. In furtherance of these objectives, the depending on progress toward price stability, the Committee at this meeting established ranges for growth strength of the business expansion, the behavior of of M2 and M3 of 2xh to 6V2 percent and 1 to 5 percent, the monetary aggregates, and developments in for- respectively, measured from the fourth quarter of 1990 to eign exchange and domestic financial markets. The the fourth quarter of 1991. The monitoring range for growth of total domestic nonfinancial debt was set at 4l/i reserve conditions contemplated at this meeting to 8V2 percent for the year. With regard to M3, the were expected to be consistent with some pickup in Committee anticipated that the ongoing restructuring of the growth of M2 and M3 to annual rates of around thrift depository institutions would continue to depress its 3 Vi percent to 4 percent over the three-month period growth relative to spending and total credit. The behavior from December to March. of the monetary aggregates will continue to be evaluated in the light of progress toward price level stability, At the conclusion of the meeting, the following movements in their velocities, and developments in the domestic policy directive was issued to the Federal economy and financial markets. Reserve Bank of New York: In the implementation of policy for the immediate future, the Committee seeks to maintain the existing The information reviewed at this meeting suggests degree of pressure on reserve positions. Depending upon further weakening in economic activity. Total nonfarm progress toward price stability, trends in economic payroll employment fell sharply further in December and activity, the behavior of the monetary aggregates, and January, reflecting widespread job losses that were developments in foreign exchange and domestic financial especially pronounced in manufacturing and construction; markets, slightly greater reserve restraint might or the civilian unemployment rate rose to 6.2 percent in somewhat lesser reserve restraint would be acceptable in January. Industrial output declined markedly in the fourth the intermeeting period. The contemplated reserve quarter, in part because of sizable cutbacks in the conditions are expected to be consistent with growth of production of motor vehicles, and partial data suggest a both M2 and M3 over the period from December through further drop in January. Consumer spending has remained March at annual rates of about 3V2 to 4 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee 321 Votes for the paragraph on short-run policy implemen- their purchases of foreign currencies. System tation: Messrs. Greenspan, Corrigan, Angell, Black, holdings of foreign currencies under the facility had Forrestal, Keehn, Kelley, La Ware, Mullins, Parry, and risen to $9.0 billion, based on acquisition costs, in Ms. Seger. Votes against this action: None. March 1990, but subsequent ESF repayments had reduced the total to $4.5 billion by November 1, 2. Agreement to "Warehouse"Foreign 1990. Currencies At this meeting, the Committee decided to reduce the limit to $10.0 billion. Such a limit would provide At its meeting on March 27, 1990, the Committee an adequate cushion of unused capacity and thus approved an increase, if requested by the Treasury, maintain operational flexibility to respond on short from $10 billion to $15 billion in the amount of notice to unanticipated developments. eligible foreign currencies that the System would be prepared to "warehouse" for the Treasury and the Votes for this action: Messrs. Greenspan, Corrigan, Exchange Stabilization Fund (ESF). The purpose of Angell, Black, Forrestal, Keehn, Kelley, LaWare, the warehousing facility is to supplement the Mullins, Parry, and Ms. Seger. Votes against this resources of the Treasury and the ESF for financing action: None. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

323 Legal Developments FINAL RULE—REVISION TO REGULATION P Section 216.2—Designation of security officer. The Board of Governors is amending 12 C.F.R. Part Upon becoming a member of the Federal Reserve 216, its Regulation P (Security Devices and Proce- System, a state bank's board of directors shall desigdures) to reflect changes in the technology of security nate a security officer who shall have the authority, devices, and to implement changes made by the Fisubject to the approval of the board of directors to nancial Institutions Reform, Recovery and Enforcedevelop, within a reasonable time, but no later than ment Act of 1989 ("FIRREA"). The revision incorpo- 180 days, and to administer a written security program rates amendments made to the Bank Protection Act of for each banking office. 1968 by FIRREA and provides banks with the flexibility to avoid the technical obsolescence that oc- 4. Section 216.3 is revised to read as follows: curred with the existing regulation. Effective May 1, 1991, 12 C.F.R. Part 216 is revised as follows: Section 216.3—Security program. Part 216—Security Procedures Section 216.1 Authority, purpose, and scope (a) Contents of security program. The security pro- Section 216.2 Designation of security officer gram shall: Section 216.3 Security program (1) establish procedures for opening and closing for Section 216.4 Report business and for the safekeeping of all currency, Section 216.5 Federal Reserve Banks negotiable securities, and similar valuables at all times; 1. The authority citation for Part 216 continues to read (2) establish procedures that will assist in identifying as follows: persons committing crimes against the institution and that will preserve evidence that may aid in their Authority: 12 U.S.C. §§ 1881-1884. identification and prosecution. Such procedures may include, but are not limited to: 2. Section 216.1 is revised to read as follows: (i) maintaining a camera that records activity in the banking office; Section 216.1—Authority, purpose, and scope. (ii) using identification devices, such as prerecorded serial-numbered bills, or chemical and (a) This regulation is issued by the Board of Governors electronic devices; and of the Federal Reserve System (the "Board") pursuant (iii) retaining a record of any robbery, burglary, or to section 3 of the Bank Protection Act of 1968 larceny committed against the bank; (12 U.S.C. § 1882). It applies to Federal Reserve (3) provide for initial and periodic training of officers Banks and state banks that are members of the Federal and employees in their responsibilities under the Reserve System. It requires each bank to adopt appro- security program and in proper employee conduct priate security procedures to discourage robberies, during and after a burglary, robbery, or larceny; and burglaries, and larcenies, and to assist in the identifica- (4) provide for selecting, testing, operating, and tion and prosecution of persons who commit such acts. maintaining appropriate security devices, as speci- (b) It is the responsibility of the member bank's board fied in paragraph (b) of this section. of directors to comply with this regulation and ensure that a written security program for the bank's main (b) Security devices. Each member bank shall have, at office and branches is developed and implemented. a minimum, the following security devices: (1) a means of protecting cash and other liquid 3. Section 216.2 is revised to read as follows: assets, such as a vault, safe, or other secure space; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

324 Federal Reserve Bulletin • May 1991 (2) a lighting system for illuminating, during the bank holding company by acquiring approximately 85 hours of darkness, the area around the vault, if the percent of the voting shares of Farmers and Merchants vault is visible from outside the banking office; Bank, Centre, Alabama ("Bank"). (3) tamper-resistent locks on exterior doors and Notice of the application, affording interested perexterior windows that may be opened; sons an opportunity to submit comments, has been (4) an alarm system or other appropriate device for published (55 Federal Register 10,287 (1990)). The promptly notifying the nearest responsible law en- time for filing comments has expired, and the Board forcement officers of an attempted or perpetrated has considered the application and all comments rerobbery or burglary; and ceived in light of the factors set forth in section 3(c) of (5) such other devices as the security officer deter- the BHC Act. mines to be appropriate, taking into consideration: Cherokee is a nonoperating company formed for the (i) the incidence of crimes against financial insti- purpose of acquiring Bank. Bank is the 87th largest tutions in the area; commercial banking organization in Alabama, control- (ii) the amount of currency and other valuables ling deposits of $29.5 million, representing less than exposed to robbery, burglary, and larceny; 1 percent of the total deposits in commercial banking (iii) the distance of the banking office from the organizations in the state.1 nearest responsible law enforcement officers; In evaluating this application, the Board is required, (iv) the cost of the security devices; under section 3 of the BHC Act, to consider the (v) other security measures in effect at the bank- financial and managerial resources of Cherokee and ing office; and Bank and the effect of the proposed acquisition on (vi) the physical characteristics of the structure of those resources and on the future prospects of both the banking office and its surroundings. Cherokee and Bank. The Board previously has stated that a bank holding company should serve as a source 5. Section 216.4 is revised to read as follows: of financial and managerial strength to its subsidiary banks, and that the Board would closely examine the Section 216.4—Report. condition of an applicant and its subsidiaries in each case with this consideration in mind.2 The Board also has cautioned against the assumption of substantial The security officer for each member bank shall report debt by a bank holding company because of concern at least annually to the bank's board of directors on the that a holding company with substantial debt would implementation, administration, and effectiveness of not have the financial flexibility necessary to meet the security program. unexpected problems in its subsidiary banks and could be forced to place substantial demands on its subsid- 6. Section 216.5 is revised to read as follows: iary banks to meet its debt servicing requirements.3 The Board notes that Bank is in weakened financial condition and is in need of financial and managerial Section 216.5—Federal Reserve Banks. support. While this proposal would inject new capital into Bank, debt constitutes a significant proportion of Each Reserve Bank shall develop and maintain a Cherokee's financing of this proposal. Cherokee written security program for its main office and projects that it will be able to reduce the acquisition branches subject to review and approval of the Board. debt in a manner consistent with Board policy. In light of the historical performance and the overall financial Orders Approved Under Section 3 of the Bank condition of Bank and Cherokee, however, Chero- Holding Company Act kee's earnings projections appear to be overly optimistic. Upon careful evaluation of more conservative Cherokee Bancorp projections, and based on more recent performance of Centre, Alabama Bank, it is the Board's judgment that, at this time, Cherokee would not have sufficient financial flexibility Order Denying Formation of a Bank Holding to service its debt without unduly straining the re- Company Cherokee Bancorp, Centre, Alabama ("Cherokee"), 1. Banking data are as of June 30, 1990. has applied for the Board's approval, pursuant to 2. 12 C.F.R. 225.4(a). 3. See St. Croix Valley Bancshare, Inc., 75 Federal Reserve Bulletin section 3(a)(1) of the Bank Holding Company Act 575 (1989); F.N.B.A. Holding Company, Inc., 75 Federal Reserve ("BHC Act") (12 U.S.C. § 1842(a)(1)) to become a Bulletin 711 (1989). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 325 sources of the Bank. Moreover, based on the record, it Notice of the application, affording interested perdoes not appear that Cherokee would have the finan- sons an opportunity to comment, has been published cial resources to meet any unexpected problems that (55 Federal Register 43,035 (1990)). The time for filing may arise at Bank. comments has expired, and the Board has considered In addition, Bank's management would remain sub- the application and all comments received in light of stantially the same after consummation of this pro- the factors set forth in section 3(c) of the BHC Act. posal and current management has not demonstrated Section 3(d) of the BHC Act (12 U.S.C. § 1842(d)), that it can provide the improvement in the perfor- the Douglas Amendment, prohibits the Board from mance of Bank necessary to support the debt contem- approving an application by a bank holding company plated by this proposal. Based on the record, it does to acquire control of any bank located outside the bank not appear that Cherokee would be able to serve as a holding company's home state unless such acquisition source of financial or managerial strength or would "is specifically authorized by the statute laws of the have the resources to meet any unexpected problems State in which [the] bank is located, by language to that may arise at its bank subsidiary. Accordingly, that effect and not merely by implication."1 Citicorp's based on a review of all the facts of record, including home state is New York.2 relevant examination materials, the Board concludes Effective January 1, 1991, the California interstate that considerations relating to financial and managerial banking statute expressly authorizes bank holding resources are not consistent with approval. Consider- companies located in other states to acquire existing ations relating to competitive factors, future prospects California banks and bank holding companies, if there and the convenience and needs of the community do is substantial reciprocity between California law and not lend sufficient weight to warrant approval of this the law of the home state of the acquiring out-of-state application. bank holding company.3 The laws of New York pro- Based on all of the facts of record in this case, the vide for similar reciprocal out-of-state acquisitions by Board believes that adverse considerations relating to expressly authorizing out-of-state bank holding comfinancial and managerial resources of Cherokee and panies to acquire New York banking institutions, if the Bank are not outweighed by any other factors. Ac- laws of the acquiring out-of-state bank holding comcordingly, it is the Board's judgment that approval of pany's home state permit reciprocal acquisitions by this application would not be in the public interest and New York bank holding companies and these laws are that the application should be, and hereby is, denied. not unduly restrictive in administering such reciproc- By order of the Board of Governors, effective ity.4 The California Superintendent of Banks has de- March 4, 1991. termined that the New York interstate banking statute is substantially reciprocal with California law.5 Based Voting for this action: Chairman Greenspan and Governors on the foregoing, the Board has determined that the Seger, LaWare, and Mullins. Absent and not voting: Gover- proposed acquisition is specifically authorized by the nors Angell and Kelley. statute laws of California and that Board approval is not barred by the Douglas Amendment. JENNIFER J. JOHNSON Citicorp is the largest banking organization in New Associate Secretary of the Board York, operating two subsidiary banks with total deposits of $47.1 billion, representing approximately 18.0 Citicorp percent of the total deposits in commercial banks in New York, New York New York.6 Citicorp also controls commercial bank- Order Approving the Acquisition of a Bank Holding 1. 12 U.S.C. § 1842(d). Company 2. A bank holding company's home state is that state in which the operation of the bank holding company's subsidiary banks were principally conducted on July 1, 1966, or the date on which the Citicorp, New York, New York ("Citicorp"), a bank company became a bank holding company, whichever is later. holding company within the meaning of the Bank 3. California law also requires that the acquisition not have an adverse effect upon the public convenience in California and that the Holding Company Act ("BHC Act"), has applied California Superintendent of Banks approve the transaction. Cal. Fin. under section 3(a)(3) of the BHC Act Code §§ 3753, 3756 (West 1991). 4. New York Banking Law § 142-b (McKinney 1990). California (12 U.S.C. § 1842(a)(3)) to acquire all of the voting law does not impose unduly restrictive conditions on acquisitions by shares of De Anza Holding Corporation, Sunnyvale, New York bank holding companies. California ("De Anza)", and thereby indirectly ac- 5. See Letter dated January 2, 1991, from James Gilleran, Superintendent of Banks. quire De Anza's subsidiary bank, De Anza Bank, 6. State deposit data are as of June 30, 1990. Market deposit data are Sunnyvale, California ("Bank"). as of June 30, 1988. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

326 Federal Reserve Bulletin • May 1991 ing organizations in ten other states. In California, would not result in a significant adverse effect on Citicorp operates a federal savings bank, Citibank probable future competition in any relevant banking Federal Savings Bank, Oakland, California ("Citibank market. Savings"). Citibank Savings is the 12th largest thrift The Board has considered the financial and manainstitution in California, with total deposits of $4.8 gerial resources and future prospects of Citicorp and billion, representing 2.0 percent of the total deposits of De Anza, and has determined in the context of this thrift institutions in California. De Anza is the 365th application that these factors are consistent with aplargest commercial banking organization in California, proval. In addition, considerations relating to the operating a single subsidiary bank, with deposits of convenience and needs of the communities to be $31.1 million, representing less than one percent of the served also are consistent with approval of this applitotal deposits in commercial banks in California. cation. Based upon the facts of record, the Board concludes Based on the foregoing and other facts of record, the that the consummation of this proposal would not have Board has determined that the application should be, a significantly adverse effect upon the concentration of and hereby is, approved. In granting this approval, the banking resources in California or New York. Board has relied upon Citicorp's commitments and Citicorp, through Citibank Savings, competes di- representations, and this approval is conditioned upon rectly with De Anza in the San Francisco Vicinity Citicorp obtaining all required State approvals. This Rand McNally Metropolitan Area ("RMA") banking transaction shall not be consummated before the thirmarket.7 Citicorp is the fourth largest depository or- tieth calendar day following the effective date of this ganization in that market with $3.1 billion in deposits, Order, or later than three months after the effective representing approximately 4.1 percent of the total date of this Order, unless such period is extended for deposits held by banks and savings associations oper- good cause by the Board or by the Federal Reserve ating in the market ("market deposits").8 De Anza is Bank of New York, acting pursuant to delegated the 104th largest depository organization in the mar- authority. ket, with approximately $30 million in deposits, repre- By order of the Board of Governors, effective senting less than one percent of market deposits. Upon March 18, 1991. consummation of this proposal, Citicorp would remain the fourth largest depository organization in the mar- Voting for this action: Chairman Greenspan and Governors ket, with $3.1 billion in deposits, representing approx- Angell, Kelley, and LaWare. Abstaining from this action: imately 4.1 percent of market deposits.9 The Herfind- Governor Mullins. ahl-Hirschman Index ("HHI"), upon consummation, would increase by less than one point to 1031.10 Based JENNIFER J. JOHNSON Associate Secretary of the Board on these and other facts of record, the Board concludes that the acquisition would not have a significant Key Centurion Bancshares, Inc. adverse effect on competition in the San Francisco Charleston, West Virginia vicinity RMA banking market. Consummation also Order Approving the Acquisition of a Bank Holding 7. The San Francisco Vicinity RMA market is approximated by San Company Francisco County and portions of San Mateo, Santa Clara, Alemeda, Contra Costa, Solano, Napa, Sonoma, and Marin counties, all in California. Key Centurion Bancshares, Inc., Charleston, West 8. The Board previously has indicated that thrift institutions have Virginia ("Key Centurion"), a bank holding company become, or have the potential to become, major competitors of within the meaning of the Bank Holding Company Act commercial banks. Midwest Financial Group, 75 Federal Reserve Bulletin 386 (1989); CB&T Bancshares, Inc., 75 Federal Reserve ("BHC Act"), has applied under section 3 of the BHC Bulletin 381 (1989); National City Corporation, 70 Federal Reserve Act (12 U.S.C. § 1842) to acquire Southern Bank- Bulletin 743 (1984). The Board believes that the record in this case shares, Inc., Beckley, West Virginia ("Southern"), supports the inclusion of thrift institutions on a 50 percent weighted basis in the calculation of market share in this market and the deposits and thereby indirectly acquire both Beckley National in Citibank Savings on a 100 percent weighted basis. Bank, Beckley, West Virginia, and M & M Financial 9. The pre-consummation and post-consummation market share Corporation, an intermediate bank holding company data are based on calculations in which the deposits of Citibank Savings have been included on a 100 percent weighted basis, and the of Southern, and its wholly owned subsidiary, Merdeposits of all other savings associations in the market have been chants & Miners National Bank of Oak Hill, both in included on a 50 percent weighted basis. Oak Hill, West Virginia. 10. Under the revised Department of Justice Merger Guidelines, 49 Federal Register 26,823 (1984), a market in which the post-merger Notice of the applications, affording interested per- HHI is between 1000 and 1800 is considered moderately concentrated. sons an opportunity to submit comments, has been In such markets, the Justice Department is unlikely to challenge a merger if the increase in the HHI is less than 100 points. duly published (55 Federal Register 53,055 (1990)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 327 The time for filing comments has expired, and the Several factors mitigate the potential anticompeti- Board has considered the applications and all com- tive effects of this proposal. Twelve commercial banks ments received in light of the factors set forth in would remain as competitors upon consummation of section 3(c) of the BHC Act. this proposal. The Board has also considered the Key Centurion, which operates 15 banking subsid- presence of thrift institutions in this market in its iaries located in West Virginia and one banking sub- analysis of the proposal.4 sidiary located in Kentucky, is the largest banking In addition, there are indications that the Beckley organization in West Virginia, controlling approxi- market is attractive for entry. The Beckley market is mately $1.8 billion in deposits in West Virginia, repre- the largest of 45 markets in West Virginia that do not senting 12.1 percent of the total deposits in commer- include a Metropolitan Statistical Area ("MSA") and cial banking organizations in the state.1 Southern is the has a higher population per banking office than similar 12th largest banking organization in West Virginia, West Virginia banking markets, both of which would controlling approximately $256.1 million in deposits in tend to enhance its attractiveness for entry. On aver- West Virginia, representing 1.8 percent of the total age, banks in this market have higher total amounts of deposits in commercial banking organizations in the deposits per banking office and experience a higher state. Upon consummation of the proposed acquisi- return on assets than banks in other non-MSA West tion, Key Centurion would remain the largest commer- Virginia banking markets, factors which would also cial banking organization in West Virginia, controlling make entry relatively attractive. The market's attracapproximately $2.1 billion in deposits in West Vir- tiveness for entry was demonstrated in 1990 when a ginia, representing 13.9 percent of the total deposits in banking subsidiary of West Virginia's seventh largest commercial banking organizations in the state. Con- bank holding company established a branch in the summation of the proposal would not result in signif- Beckley market on a de novo basis.5 Finally, because icantly adverse effects on the concentration of banking West Virginia law has permitted statewide branching resources in West Virginia. since 1984 and nationwide reciprocal branching since Both Key Centurion and Southern compete directly 1988,6 there are many potential entrants to the Beckley in the Beckley, West Virginia, banking market.2 Key banking market.7 Centurion is the sixth largest commercial banking In light of all the facts in this case, including the organization in the market, controlling approximately presence of thrift institutions in the market, the Beck- $46.8 million in deposits, representing 4.9 percent of ley market's attractiveness for entry, and the substanthe total deposits in commercial banking organizations tial number of competitors that would remain in the in the market. Southern is the largest commercial market, the Board does not believe that the proposed banking organization in the market, controlling ap- acquisition would result in a significantly adverse proximately $255.0 million in deposits, representing effect on competition in the Beckley banking market. 26.6 percent of the total deposits in commercial bank- The financial and managerial resources of Key Cening organizations in the market. Upon consummation turion and Southern and their future prospects are of this proposal, Key Centurion would become the consistent with approval. Considerations relating to largest commercial banking organization in the market, controlling approximately $301.8 million in deposits, representing 31.5 percent of the total deposits in indicating anticompetitive effects) unless the post-merger HHI is at commercial banking organizations in the market. The least 1800 and the merger increases the HHI by at least 200 points. The Justice Department has stated that the higher than normal HHI proposed transaction would increase the Herfindahl- thresholds for screening bank mergers for anticompetitive effects Hirschman Index ("HHI") in the Beckley banking implicitly recognizes the competitive effects of limited-purpose lendmarket by 261 points to 2051.3 ers and other non-depository financial entities. 4. If 50 percent of the deposits held by thrift institutions were included in the calculation of market concentration, Key Centurion would control 4.7 percent of market deposits and Southern would 1. State banking data are as of September 30, 1990. Market share control 25.4 percent. The HHI would increase by 237 points to 1875. data are as of June 30, 1989. The Board has previously indicated that thrift institutions have 2. The Beckley banking market is approximated by the West become, or have the potential to become, major competitors of Virginia Counties of Raleigh; Summers; and Fayette (excluding the commercial banks. Midwest Financial Group, 75 Federal Reserve towns of Montgomery and Smithers); and the town of Whitesville in Bulletin 386 (1989); CB&T Bancshares, Inc., 75 Federal Reserve Boone County, West Virginia. Bulletin 381 (1989); National City Corporation, 70 Federal Reserve 3. Under the revised Department of Justice Merger Guidelines, 49 Bulletin 743 (1984). Federal Register 26,823 (June 2, 1984), any market in which the 5. The deposits of this branch were not included in the HHI post-merger HHI is over 1800 is considered highly concentrated, and calculation for this market since the branch opened after the date for the Justice Department is likely to challenge a merger that increases which market deposit data are available. the HHI by more than 50 points unless other factors indicate that the 6. W. Va. Code §§ 31A-8A-7; 31A-8-12. merger will not substantially lessen competition. The Justice Depart- 7. For example, there are currently seven West Virginia bank ment has informed the Board that a bank merger or acquisition holding companies among the ten largest bank holding companies in generally will not be challenged (in the absence of other factors the state that do not have a banking presence in the Beckley market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

328 Federal Reserve Bulletin • May 1991 the convenience and needs of the communities to be percent in Moorcroft. This proposal represents a corserved also are consistent with approval. porate reorganization with no change in ownership.1 Based on the foregoing and other facts of record, the Moorcroft State Bank ("Moorcroft Bank"), Moor- Board has determined that the applications should be, croft's member bank subsidiary, has also applied and hereby are, approved. The transactions shall not under the Bank Merger Act (12 U.S.C. § 1828 (c)) to be consummated before the thirtieth calendar day merge with Newcastle Bank with Moorcroft Bank as following the effective date of this Order, or later than the surviving entity. In addition, Moorcroft Bank has three months after the effective date of this Order, applied to establish a branch at the present location of unless such period is extended by the Board or by the Moorcroft Bank under section 9 of the Federal Re- Federal Reserve Bank of Richmond, acting pursuant serve Act (12 U.S.C. § 321) and for permission to to delegated authority. make an additional investment in bank premises pur- By order of the Board of Governors, effective suant to section 24A of the Federal Reserve Act March 18, 1991. (12 U.S.C. § 371(d)). Notice of the applications, affording interested per- Voting for this action: Chairman Greenspan and Governors sons an opportunity to submit comments, has been Angell, Kelley, LaWare, and Mullins. published (55 Federal Register 47,806 (1990)). As required by the Bank Merger Act, reports on the JENNIFER J. JOHNSON competitive effects of the merger were requested from Associate Secretary of the Board the United States Attorney General, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation. The time for filing comments The Moorcroft Corporation has expired, and the Board has considered the appli- Moorcroft, Wyoming cations and all comments received in light of the factors set forth in section 3(c) of the BHC Act and in the Bank Merger Act. Moorcroft State Bank Section 3(d) of the BHC Act, the Douglas Amend- Moorcroft, Wyoming ment, prohibits the Board from approving an application by a bank holding company to acquire control of any bank located outside of the bank holding com- North Platte Corporation pany's home state, unless such acquisition is "specif- Torrington, Wyoming ically authorized by the statute laws of the State in which [the] bank is located, by language to that effect and not merely by implication."2 Dawson's home Dawson Corporation state is Nebraska and all of Moorcroft's and Newcas- Lexington, Nebraska tle's banks are located in Wyoming.3 Wyoming law authorizes financial institutions located in any state to acquire Wyoming financial institutions Order Approving the Merger of Bank Holding that have been chartered to do business in Wyoming for Companies, the Merger of Banks, the Establishment at least three years.4 Both Moorcroft and Newcastle of a Branch, and an Investment in Bank Premises and their banking subsidiaries have been chartered to do business in Wyoming for at least three years. In light The Moorcroft Corporation, Moorcroft, Wyoming of the foregoing, the Board has determined that the ("Moorcroft"), a bank holding company within the proposed acquisition is specifically authorized by the meaning of the Bank Holding Company Act ("BHC statute laws of Wyoming and that Board approval of the Act"), has applied under section 3 of the BHC Act proposal is not barred by the Douglas Amendment. (12 U.S.C. § 1842) to merge with The Newcastle Moorcroft is the 47th largest banking organization in Corporation ("Newcastle"), and thereby indirectly Wyoming, controlling approximately $9.4 million in acquire National Bank of Newcastle ("Newcastle Bank"), both in New Castle, Wyoming. In connection with this application, North Platte Corporation, Tor- 1. All of the institutions involved in this proposal are part of the rington, Wyoming ("North Platte"), and Dawson Cor- Dinsdale family chain banking organization. 2. 12 U.S.C. § 1842(d). poration, Lexington, Nebraska ("Dawson"), bank 3. A bank holding company's home state is that state in which the holding companies within the meaning of the BHC operations of the bank holding company's banking subsidiaries were Act, have applied under section 3 of the BHC Act to principally conducted on July 1, 1966, or the date on which the company became a bank holding company, whichever is later. retain a nonvoting equity interest in excess of 25 4. Wyo. Stat. § 13-9-303 (1990). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 329 deposits in Wyoming, representing 0.2 percent of the safe and sound operation of the institution," and to total deposits in commercial banking organizations in take this record into account in its evaluation of bank the state.5 Newcastle is the 39th largest banking orga- holding company applications. nization in Wyoming, controlling approximately $17.2 In this regard, the Board has received comments million in deposits in Wyoming, representing 0.5 per- relating to Moorcroft Bank ("Moorcroft Protestants") cent of the total deposits in commercial banking orga- and North Platte's subsidiary bank, Citizens National nizations in the state. Upon consummation of the Bank & Trust Company, Torrington, Wyoming ("Citproposed acquisition, Moorcroft would become the izens Bank Protestants").6 The Moorcroft Protestants 30th largest commercial banking organization in Wy- have objected to the removal of Moorcroft Bank's oming, controlling approximately $26.6 million in de- president; the proposed operation of Moorcroft Bank posits in Wyoming, representing 0.7 percent of the as a branch in Moorcroft, Wyoming; an alleged overall total deposits in commercial banking organizations in lack of consideration for local depositors' concerns the state. North Platte is the 14th largest banking and credit needs in the proposal; and alleged stateorganization in Wyoming, controlling approximately ments inconsistent with the spirit of the CRA.7 The $66.9 million in deposits in Wyoming, representing 1.7 Citizens Bank Protestants have raised concerns repercent of the total deposits in commercial banking garding Citizens Bank's foreclosure practices for farm loans guaranteed by the Farmers Home Administraorganizations in the state. Upon consummation of the tion ("FmHA"), alleged undue pressure and harassproposed acquisition, North Platte would become the ment to obtain loan payments, and an alleged general 10th largest commercial banking organization in Wylack of financial support to the community.8 oming, controlling approximately $93.5 million in deposits in Wyoming, representing 2.4 percent of the The Board has carefully reviewed the CRA perfortotal deposits in commercial banking organizations in mance record of Applicants and Newcastle and their the state. Consummation of the proposal would not bank subsidiaries, as well as the comments received result in significantly adverse effects on the concentra- and Applicants' response to those comments, in light tion of banking resources in Wyoming. of the CRA, the Board's regulations, and the jointly North Platte, Dawson and Moorcroft (collectively, issued Statement of the Federal Financial Supervisory "Applicants") and Newcastle do not compete directly Agencies Regarding the Community Reinvestment Act with each other in any banking market. Accordingly, ("Agency CRA Statement").'5 The Agency CRA consummation of this proposal would not have any Statement provides guidance regarding the types of significantly adverse effect on the concentration of policies and procedures that the supervisory agencies banking resources or result in any significantly adverse believe financial institutions should have in place in effect upon existing competition in any relevant bank- order to fulfill their responsibilities under the CRA on ing market. In light of the existence of numerous an ongoing basis, and the procedures that the superpotential entrants into the relevant banking markets, visory agencies will use during the application process the Board has concluded that consummation of this to review an institution's CRA compliance and perforproposal would not result in a significantly adverse mance. The Agency CRA Statement also suggests that decisions by agencies to allow financial institutions to effect on probable future competition in any relevant expand will be made pursuant to an analysis of the market. overall CRA performance of the institution.10 In considering the convenience and needs of the communities to be served, the Board has taken into account the record of the subsidiary banks of Applicants and Newcastle under the Community Reinvest- 6. The Board also has considered additional comments filed on this ment Act (12 U.S.C. § 2901 et seq.) ("CRA"). The application after the close of the comment period. Under the Board's CRA requires the federal financial supervisory agen- rules, the Board may in its discretion take into consideration the cies to encourage financial institutions to help meet the substance of such comments. 12 C.F.R. 262.3(e). 7. The Moorcroft Protestants have submitted signatures of numercredit needs of the local communities in which they ous Moorcroft Bank depositors and local residents. The statements operate consistent with the safe and sound operation alleged to be inconsistent with the spirit of the CRA occurred in a of such institutions. To accomplish this end, the CRA public meeting to discuss the proposed reorganization. The Board has reviewed these statements in light of the entire record relating to CRA requires the appropriate federal supervisory authority performance. to "assess an institution's record of meeting the credit 8. These Protestants and other commenters have also alleged that needs of its entire community, including low- and Citizens Bank and other affiliated institutions "siphon" profits off the communities they serve. However, these commenters have alleged no moderate-income neighborhoods, consistent with the facts to support this comment and the record in this application, including relevant examination reports, contain no evidence of this practice. 9. 54 Federal Register 13,742 (1989). 5. State banking data are as of December 31, 1989. 10. Id. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

330 Federal Reserve Bulletin • May 1991 Initially, the Board notes that all of the subsidiary addition, the Board does not believe that all the facts banks of Applicants and Newcastle have received sat- of record support Protestants' allegations of inapproisfactory ratings from their primary regulators in the priate loan practices.14 The Board also determines that most recent examinations of their CRA performance.11 the financial and managerial resources and future The Agency CRA Statement provides that, although prospects of Applicants are consistent with approval CRA examination reports do not provide conclusive of these applications. evidence of an institution's CRA record, these reports Moorcroft Bank has also applied under section 9 of will be given great weight in the applications process.12 the Federal Reserve Act (12 U.S.C. § 321 et seq.) to In addition, Applicants and Newcastle have in place establish a branch at its present location. The present the types of programs outlined in the Agency CRA site of Newcastle Bank will become the main office of Statement as essential to an effective CRA program. Moorcroft Bank following the merger. The Board has For example, a review of the CRA program at Moor- considered the factors it is required to consider when croft Bank indicates that Moorcroft Bank actively par- reviewing applications for establishing branches purticipates in local community organizations and makes suant to section 9 of the Federal Reserve Act agricultural, consumer and real estate loans. Moorcroft (12 U.S.C. § 322) and finds those factors to be consis- Bank also participates in loan programs such as the tent with approval. FmHA, Small Business Administration, Federal Hous- Moorcroft Bank has also requested permission uning Administration and Veterans Administration, as der section 24A of the Federal Reserve Act to make an well as the Wyoming Link Deposit program, which additional investment in bank premises in connection promotes job creation and preservation. Moorcroft with this proposal. The additional investment will be Bank also advertises its programs in local news publi- used to acquire the Newcastle Bank premises. The cations. In addition, Applicants' principal has repre- Board concludes that Moorcroft Bank's additional sented that, subject to considerations relating to the investment in bank premises will support Moorcroft safety and soundness of banking practices, no change in Bank's acquisition of the Newcastle Bank premises, the availability or types of credit or services at Moor- and is consistent with approval. croft Bank will result from the proposed restructur- Based on all the foregoing and other facts of record, ing.13 the Board has determined that the applications should Regarding the Citizens Bank Protestants, the Board be, and hereby are, approved. The transactions shall notes that Citizens Bank is an active agricultural not be consummated before the thirtieth calendar day lender in Goshen County, Wyoming. Since December following the effective date of this Order, or later than 1989, Citizens Bank has invested in the community three months after the effective date of this Order, through the purchase of municipal warrants for the unless such period is extended for good cause by the Goshen County Irrigation District Project, the Mitch- Board or by the Federal Reserve Bank of Kansas City, ell Irrigation District Project, the Goshen County acting pursuant to delegated authority. Nursing Home Project, and the Goshen County Li- By order of the Board of Governors, effective brary Board. Citizens Bank has made numerous March 4, 1991. FmHA guaranteed loans over the last five years and during this period, FmHA has only been asked to Voting for this action: Chairman Greenspan and Governors Seger, LaWare, and Mullins. Absent and not voting: Goverhonor its guarantee on three of these loans, all of nors Angell and Kelley. which were in default at least 120 days before FmHA became financially involved. JENNIFER J. JOHNSON For the foregoing reasons, and based upon the Associate Secretary of the Board overall CRA record of Applicants and Newcastle and their subsidiary banks and other facts of record, the Board concludes that convenience and needs consid- 14. The Citizens Bank Protestants also have raised issues regarding erations, including the record of performance under two specific loan transactions with the Protestants and their families. the CRA of Moorcroft Bank and Citizens Bank, are These transactions were the subject of civil litigation in which both the consistent with approval of these applications. In bank and the Protestants had an opportunity to present facts in support of their positions. The Board also notes that no civil judgments of wrongdoing were entered against Citizens Bank and that one of the principals alleged to have caused these Protestants harm is deceased. Other allegations of wrongdoing in another individual loan 11. All other banks in the chain controlled by the Dinsdale family transaction regarding an affiliated bank which is not involved in this have also received satisfactory ratings from their primary regulators in transaction, First National Bank, Mitchell, Nebraska, were resolved the most recent examinations of their CRA performance. by a court-approved settlement. In light of all the facts of record, 12. Id. at 13,745. including reports of examinations by the primary regulators of these 13. As part of Applicants' plans for restructuring, the bank's banks, the Board does not believe these allegations warrant denial of president was replaced. the proposal. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 331 Orders Issued Under Section 4 of the Bank providing real property management or real estate Holding Company Act brokerage services as part of its proposed activities.4 The Board has previously determined that providing Banc One Corporation asset management services for assets originated by Columbus, Ohio financial institutions and their bank holding company affiliates is an activity that is closely related to banking Order Approving Application to Engage in Asset for purposes of the BHC Act.5 Banc One has proposed Management, Servicing, and Collection Activities to conduct these activities under the same terms, and subject to the same conditions as in previous Board Banc One Corporation, Columbus, Ohio ("Banc One"), a orders regarding this activity. bank holding company within the meaning of the Bank In this regard, Banc One has made commitments to Holding Company Act ("BHC Act"), has applied un- address the concerns raised in NCNB Corporation and der section 4(c)(8) of the BHC Act, (12 U.S.C. First Florida regarding a bank holding company's § 1843(c)(8)) and section 225.23(a)(3) of the Board's ability to control an institution through the terms of an Regulation Y (12 C.F.R. 225.23(a)(3)), to engage asset management agreement without the necessary de novo in asset management, servicing, and collection regulatory approvals. For example, Banc One has activities through Banc One Management and Consult- committed that it will not own the stock of, or be ing Corporation, Columbus, Ohio ("BOMCC"). represented on the board of directors of any unaffil- BOMCC would provide asset management services iated institution for which BOMCC provides asset to the Resolution Trust Corporation ("RTC") and the management services. In addition, Banc One has Federal Deposit Insurance Corporation ("FDIC"). In committed that BOMCC will not establish policies or addition, Banc One proposes to provide these services procedures of general applicability, and that both to unaffiliated third party investors that purchase BOMCC's services for unaffiliated financial institupools of assets that have been assembled by the RTC tions would be limited to asset management, servicing, or the FDIC from troubled financial institutions, and and collection activities.6 generally to unaffiliated financial institutions with trou- The type of asset management activities proposed by bled assets.1 Banc One are the same as those previously approved by Notice of the application, affording interested per- the Board in NCNB Corporation. Financial institutions sons an opportunity to submit comments, has been and their affiliates would be the originators of the assets published (56 Federal Register 4829 (1991)). The time managed by BOMCC. Accordingly, Banc One would for filing comments has expired, and the Board has only manage assets that its financial institution affiliates considered the application and all comments received would have authority to originate and own. in light of the factors set forth in section 4(c)(8) of the The Board is also required to determine whether the BHC Act. performance of the proposed activity by Banc One is a Banc One, with total consolidated assets of $43.6 proper incident to banking—that is, whether the probillion, is the 16th largest banking organization in the nation. Banc One operates 53 subsidiary banks and or refinancing of individual loans and for the packaging and sale of engages directly and through subsidiaries in a variety whole or securitized loan portfolios. In addition, Banc One would of permissible nonbanking activities.2 conduct and review (either directly or through independent contrac- Under the proposal, BOMCC would not acquire an tors) appraisals and environmental inspections; provide asset valuations; perform cash flow and asset review analyses; contract with and ownership interest in the assets that it manages or in the supervise independent property managers; and lease (either directly institutions for which it provides asset management or through independent contractors) real estate and other DPC propservices.3 In addition, BOMCC would not engage in erty. Banc One also would dispose of DPC property by developing and implementing marketing strategies for the sale of DPC property, either individually or packaged for investors or developers. 4. Banc One will contract with independent third parties to obtain 1. Banc One must obtain the prior approval of the Board before these services for assets under BOMCC's management. providing asset management services in connection with pools of 5. See NCNB Corporation, 11 Federal Reserve Bulletin 124 (1991); assets that were not originated or held by financial institutions and First Florida Banks, Inc., 74 Federal Reserve Bulletin 111 (1988). The their affiliates. Management Consignment Program referenced in First Florida in- 2. Data are as of December 31, 1990. volved corporations managing assets of failed financial institutions 3. Asset management encompasses the liquidation (or other dispo- acquired by the Federal Home Loan Bank Board. In First Florida the sition) of loans and their underlying collateral, including real estate Board also permitted bank holding companies to provide asset manand other assets acquired through foreclosure or in satisfaction of agement services for thrifts managed by the Federal Savings and Loan debts previously contracted ("DPC property"). Specific individual Insurance Corporation. activities include: classifying and valuing loan portfolios; filing re- 6. Banc One also will provide its services for a limited period of views of loan documentation; developing collection strategies; nego- time. The Board notes that, while Banc One will manage assets on an tiating renewals, extensions, and restructuring agreements: initiating ongoing basis, the owner of the assets will retain the right to make all foreclosure, bankruptcy, and other legal proceedings, where appro- final decisions regarding asset dispositions and to terminate Banc One priate; and developing and implementing market strategies for the sale as an asset manager. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

332 Federal Reserve Bulletin • May 1991 posed activity "can reasonably be expected to pro- result from approval of this application outweigh any duce benefits, such as greater convenience, increased potential adverse effects, and that the public interest competition, or gains in efficiency, that outweigh pos- factors it must consider under section 4(c)(8) of the sible adverse effects, such as undue concentration of BHC Act are consistent with approval. The financial resources, decreased or unfair competition, conflicts and managerial resources of Banc One and its subsidof interests, or unsound banking practices." iaries are also consistent with approval. 12 U.S.C. § 1843(c)(8). Based upon the foregoing and all of the other facts of Consummation of the proposal can reasonably be record, including commitments made by Banc One expected to result in public benefits. Banc One's and conditions in this Order, the Board has determined proposal would facilitate the disposal of assets of to approve, and hereby does approve, this application. financial institutions in receivership as well as financial The Board's determination is subject to all of the institutions with troubled financial assets. Moreover, conditions set forth in the Board's Regulation Y, the efficient disposition of such assets can reasonably including those in sections 225.4(d) and 225.23(b), and be expected to produce benefits to the public. BOMCC to the Board's authority to require modification or will own no equity in the institutions for which it termination of the activities of a bank holding comprovides asset management services or in the assets pany or any of its subsidiaries as the Board finds that it manages. Banc One's de novo entry into the necessary to assure compliance with, and to prevent market will increase competition for these services. evasion of, the provisions of the BHC Act and the Banc One has indicated that it may, in certain Board's Regulations and Orders issued thereunder. instances, seek approval to acquire institutions whose This transaction shall not be consummated later assets are being managed by BOMCC. In NCNB than three months after the effective date of this Corporation and First Florida, the Board expressed Order, unless such period is extended for good cause concern that a bank holding company might obtain by the Board or by the Federal Reserve Bank of confidential information in the course of providing its Cleveland, acting pursuant to delegated authority. asset management services that would provide the By order of the Board of Governors, effective bank holding company with a competitive advantage March 25, 1991. over other institutions in the bidding process for the failed institution under management. The Board also Voting for this action action: Chairman Greenspan and noted that such information could give the managing Governors Angell, Kelley, La Ware, and Mullins. bank holding company a competitive advantage over JENNIFER J. JOHNSON the ultimate acquiror of the failed institution in mar- Associate Secretary of the Board kets where they both compete. To address these concerns, Banc One has commit- Citicorp ted that it will establish and implement procedures to New York, New York preserve the confidentiality of information obtained in the course of providing asset management services.7 Order Approving the Acquisition of a Savings These procedures will prevent the use of information Association obtained by BOMCC through its asset management activities in the course of preparing any bid that Banc Citicorp, New York, New York ("Citicorp"), a bank One may prepare to acquire the institution managed by holding company within the meaning of the Bank Hold- BOMCC, and will prevent Banc One from competing ing Company Act ("BHC Act"), has applied for the unfairly against the winning bidder in the relevant Board's approval pursuant to section 4(c)(8) of the market. BHC Act (12 U.S.C. § 1843(c)(8)) and section 225.23(a) There is no evidence in the record to indicate that of the Board's Regulation Y (12 C.F.R. 225.23(a)), to consummation of this proposal is otherwise likely to acquire Brookfield Bancshares Corporation, Brookresult in any significantly adverse effects, such as field, Illinois ("Brookfield"), and Brookfield's wholly undue concentration of resources, decreased or unfair owned subsidiary, Brookfield Federal Bank for Savcompetition, conflicts of interests, or unsound banking ings, Brookfield, Illinois, a savings association practices. Accordingly, on the basis of all of the facts ("Brookfield Savings").1 of record and commitments made by Banc One, the Board concludes that the public benefits that would 1. Citicorp is proposing to merge Brookfield Savings into Citibank, Federal Savings Bank, Oakland, California ("Citibank FSB (Califor- 7. Banc One's procedures will be subject to review by the Federal nia)"), a wholly owned subsidiary of Citicorp. Citicorp will create a Reserve System. shell subsidiary of Citicorp Mortgage, Inc., St. Louis, Missouri Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 333 Notice of the application, affording interested per- lion. After consummation of the proposed acquisition, sons an opportunity to submit comments, has been Citicorp would remain the sixth largest depository published (55 Federal Register 49,704 (1990)). The organization in Illinois, controlling total deposits of time for filing comments has expired, and the Board approximately $3.8 billion, representing 3.1 percent of has considered the application and all comments re- the total deposits in banks and savings associations in ceived in light of the public interest factors set forth in the state. In the Board's view, consummation of the section 4(c)(8) of the BHC Act. proposal would not have a significantly adverse effect The Board has determined that the operation of a on the concentration of resources in depository instisavings association is closely related to banking and tutions in Illinois. permissible for bank holding companies. 12 C.F.R. Citicorp and Brookfield Savings compete directly in 225.25(b)(9). In making this determination, the Board one banking market in Illinois. In the Chicago banking required that savings associations acquired by bank market,4 Citicorp is the sixth largest depository orgaholding companies conform their direct and indirect nization, controlling $3.5 billion in deposits, representactivities to those permissible for bank holding com- ing 3.0 percent of the total deposits in banks and panies under section 4 of the BHC Act. Citicorp has savings associations in the market ("market deposcommitted to conform all activities of Brookfield Sav- its"). Brookfield Savings is the 81st largest depository ings to the requirements of section 4 and Regulation institution, controlling less than one percent of market Y.2 In order to approve the application, the Board also deposits. Upon consummation of this proposal, Citiis required by section 4(c)(8) of the BHC Act to corp would remain the sixth largest depository orgadetermine that the ownership and operation of Brook- nization in the Chicago market, with 3.2 percent of field Savings by Citicorp "can reasonably be expected market deposits. The Chicago banking market is conto produce benefits to the public . . . that outweigh sidered to be unconcentrated, with the four largest possible adverse effects, such as undue concentration depository institutions currently controlling 36.1 perof resources, decreased or unfair competition, con- cent of the market deposits. After consummation of flicts of interests, or unsound banking practices." the proposal, the market would remain unconcen- 12 U.S.C. § 1843(c)(8). trated, and the Herfindahl-Hirschman Index ("HHI") would increase by one point, to a level of 485.5 Based Citicorp, with total consolidated assets of $217 on all the facts of record, the Board has determined billion, operates 11 banking and savings association that consummation of this proposal would not have a subsidiaries in Arizona, Delaware, Florida, Maine, significantly adverse effect on the concentration of Maryland, Nevada, New York, and South Dakota. resources or on competition in any relevant banking Citicorp also engages through several subsidiaries in market. permissible nonbanking activities. Citicorp is the sixth largest depository organization In light of the considerations discussed above, and in Illinois and controls deposits of approximately $3.6 based on all of the facts of record, the Board has billion, representing 3.0 percent of the total deposits in determined that consummation of this proposal is not banks and savings associations in the state.3 Brook- likely to result in any other significantly adverse field Bancshares is the 87th largest depository organi- effects, such as undue concentration of resources, zation in Illinois, controlling deposits of $213.5 mil- decreased or unfair competition, conflicts of interests, or unsound banking practices. Financial and manage- ("CMI"), which subsidiary will be merged into Brookfield. CMI then will dissolve Brookfield and cause Brookfield to merge with and into Citibank FSB (California), the surviving entity. Citicorp has recently 4. The Chicago banking market consists of Cook, DuPage, and Lake merged its Washington, D.C. and Illinois savings association subsid- Counties, all in Illinois. iaries into Citibank FSB (California). 5. Under the revised Department of Justice Merger Guidelines, 49 2. Brookfield Savings owns three subsidiaries that are engaged Federal Register 26,823 (1984), a market in which the post-merger wholly or partly in activities that are permissible for bank holding HHI is between 1000 and 1800 is considered moderately concentrated. companies under the BHC Act: Brookfield Service Corporation In such markets, the Justice Department is unlikely to challenge a ("BSC"), which is engaged in insurance agency activities; as well as merger if an increase in the HHI is less than 100 points. Any market West-Cook DuPage Development Company ("West-Cook") and in which the post-merger HHI is over 1800 is considered to be highly Hutchinson Homes, Inc. ("Hutchinson"), both of which engage in concentrated, and the Justice Department is likely to challenge a real estate development activities. Citicorp has committed that it will merger that increases the HHI by more than 50 points, unless other not undertake any new real estate development activities following its factors indicate that the merger will not substantially lessen competiacquisition of Brookfield Savings, and will divest West-Cook and tion. The Justice Department has informed the Board that a bank Hutchinson within two years of the date of consummation of this merger or acquisition generally will not be challenged (in the absence proposal. Citicorp also has committed that it will terminate any of other factors indicating anticompetitive effects) unless the postimpermissible insurance activities of BSC upon consummation of this merger HHI market is at least 1800 and the merger increases the HHI proposal and will cease renewing existing policies within a reasonable by at least 200 points. The Justice Department has stated that the time. higher than normal HHI thresholds for screening bank mergers for anticompetitive effects implicitly recognizes the competitive effect of 3. State deposit data are as of December 31, 1988. Market data are limited-purpose lenders and other non-depository financial entities. as of June 30, 1989. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

334 Federal Reserve Bulletin • May 1991 rial factors in the context of this application are purchase pools of assets that have been assembled by consistent with approval. Accordingly, based on the the RTC or the FDIC from troubled financial instituconsideration of all of the facts of record, the Board tions, and generally to unaffiliated financial institutions has determined that the balance of the public interest with troubled assets.1 factors that it is required to consider under section Notice of the application, affording interested per- 4(c)(8) of the BHC Act is favorable and consistent with sons an opportunity to submit comments, has been approval of Citicorp's application to acquire Brook- published (55 Federal Register 29,667 (1990)). The field Savings. time for filing comments has expired, and the Board Accordingly, the Board has determined that the has considered the application and all comments reproposed application pursuant to section 4(c)(8) of the ceived in light of the factors set forth in section 4(c)(8) BHC Act should be, and hereby is, approved. This of the BHC Act. determination is subject to all the conditions set forth First Interstate, with total consolidated assets of in the Board's Regulation Y, including sections $51.4 billion, is the 11th largest banking organization in 225.4(d) and 225.23(b)(3), and to the Board's authority the nation. First Interstate operates 25 subsidiary to require such modification or termination of the banks and engages directly and through subsidiaries in activities of a bank holding company or any of its a variety of permissible nonbanking activities.2 subsidiaries as the Board finds necessary to assure Under the proposal, FAES would not acquire an compliance with, or to prevent evasion of, the provi- ownership interest in the assets that it manages or in sions and purposes of the BHC Act and the Board's the institutions for which it provides asset manageregulations and orders issued thereunder. ment services.3 In addition, FAES would not engage The transactions approved in this Order shall be in providing real property management or real estate made not later than three months after the effective brokerage services as part of its proposed activities.4 date of this Order, unless such period is extended for The Board has previously determined that providing good cause by the Board or by the Federal Reserve asset management services for assets originated by Bank of New York, pursuant to delegated authority. financial institutions and their bank holding company By order of the Board of Governors, effective affiliates is an activity that is closely related to banking March 18, 1991. for purposes of the BHC Act.5 First Interstate has proposed to conduct these activities under the same Voting for this action action: Chairman Greenspan and Governors Angell, Kelley, and LaWare. Abstaining from this action: Governor Mullins. 1. First Interstate must obtain the prior approval of the Board before providing asset management services in connection with pools of JENNIFER J. JOHNSON assets that were not originated or held by financial institutions and Associate Secretary of the Board their affiliates. 2. Data are as of December 31, 1990. 3. Asset management encompasses the liquidation (or other dispo- First Interstate Bancorp sition) of loans and their underlying collateral, including real estate and other assets acquired through foreclosure or in satisfaction of Los Angeles, California debts previously contracted ("DPC property"). Specific individual activities include: classifying and valuing loan portfolios; filing reviews of loan documentation; developing collection strategies; nego- Order Approving Application to Engage in Asset tiating renewals, extensions, and restructuring agreements; initiating Management, Servicing, and Collection Activities foreclosure, bankruptcy, and other legal proceedings, where appropriate; and developing and implementing market strategies for the sale or refinancing of individual loans and for the packaging and sale of First Interstate Bancorp, Los Angeles, California whole or securitized loan portfolios. In addition, First Interstate would conduct and review (either directly or through independent ("First Interstate"), a bank holding company within contractors) appraisals and environmental inspections; provide asset the meaning of the Bank Holding Company Act valuations; perform cash flow and asset review analyses; contract ("BHC Act"), has applied under section 4(c)(8) of the with and supervise independent property managers; and lease (either directly or through independent contractors) real estate and other BHC Act (12 U.S.C. § 1843(c)(8)) and section DPC property. First Interstate also would dispose of DPC property by 225.23(a)(3) of the Board's Regulation Y (12 C.F.R. developing and implementing marketing strategies for the sale of DPC property, either individually or packaged for investors or developers. 225.23(a)(3)), to engage de novo in asset management, 4. First Interstate will contract with independent third parties to servicing, and collection activities through FAES, obtain these services for assets under FAES's management. Inc., Denver, Colorado ("FAES"). 5. See NCNB Corporation, 77 Federal Reserve Bulletin 124 (1991); First Florida Banks, Inc., 74 Federal Reserve Bulletin 111 (1988). The FAES would provide asset management services to Management Consignment Program referenced in First Florida inthe Resolution Trust Corporation ("RTC") and the volved corporations managing assets of failed financial institutions Federal Deposit Insurance Corporation ("FDIC"). In acquired by the Federal Home Loan Bank Board. In First Florida the Board also permitted bank holding companies to provide asset manaddition, First Interstate proposes to provide these agement services for thrifts managed by the Federal Savings and Loan services both to unaffiliated third party investors that Insurance Corporation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 335 terms, and subject to the same conditions as in previ- assets are being managed by FAES. In NCNB Corpoous Board orders regarding this activity. ration and First Florida, the Board expressed concern In this regard, First Interstate has made commit- that a bank holding company might obtain confidential ments to address the concerns raised in NCNB Cor- information in the course of providing its asset manporation and First Florida regarding a bank holding agement services that would provide the bank holding company's ability to control an institution through the company with a competitive advantage over other terms of an asset management agreement without the institutions in the bidding process for the failed instinecessary regulatory approvals. For example, First tution under management. The Board also noted that Interstate has committed that it will not own the stock such information could give the managing bank holdof, or be represented on the board of directors of any ing company a competitive advantage over the ultiunaffiliated institution for which FAES provides asset mate acquiror of the failed institution in markets where management services. In addition, First Interstate has they both compete. committed that FAES will not establish policies or To address these concerns, First Interstate has procedures of general applicability, and that FAES's committed that it will establish and implement proceservices for unaffiliated financial institutions would be dures to preserve the confidentiality of information limited to asset management, servicing, and collection obtained in the course of providing asset management activities.6 services.7 These procedures will prevent the use of The type of asset management activities proposed information obtained by FAES through its asset manby First Interstate are the same as those previously agement activities in the course of preparing any bid approved by the Board in NCNB Corporation. Finan- that First Interstate may prepare to acquire the insticial institutions and their affiliates would be the origi- tution managed by FAES, and will prevent First nators of the assets managed by FAES. Accordingly, Interstate from competing unfairly against the winning First Interstate would only manage assets that its bidder in the relevant market. financial institution affiliates would have authority to There is no evidence in the record to indicate that originate and own. consummation of this proposal is otherwise likely to The Board is also required to determine whether the result in any significantly adverse effects, such as performance of the proposed activity by First Inter- undue concentration of resources, decreased or unfair state is a proper incident to banking—that is, whether competition, conflicts of interests, or unsound banking the proposed activity "can reasonably be expected to practices. Accordingly, on the basis of all of the facts produce benefits, such as greater convenience, in- of record and commitments made by First Interstate, creased competition, or gains in efficiency, that out- the Board concludes that the public benefits that weigh possible adverse effects, such as undue concen- would result from approval of this application outtration of resources, decreased or unfair competition, weigh any potential adverse effects, and that the public conflicts of interests, or unsound banking practices." interest factors it must consider under section 4(c)(8) 12 U.S.C. § 1843(c)(8). of the BHC Act are consistent with approval. The Consummation of the proposal can reasonably be financial and managerial resources of First Interstate expected to result in public benefits. First Interstate's and its subsidiaries are also consistent with approval. proposal would facilitate the disposal of assets of Based upon the foregoing and all of the other facts of financial institutions in receivership as well as financial record, including commitments made by First Interinstitutions with troubled financial assets. Moreover, state and conditions in this Order, the Board has the efficient disposition of such assets can reasonably determined to approve, and hereby does approve, this be expected to produce benefits to the public. FAES application. The Board's determination is subject to all will own no equity in the institutions for which it of the conditions set forth in the Board's Regulation Y, provides asset management services or in the assets including those in sections 225.4(d) and 225.23(b), and that it manages. First Interstate's de novo entry into to the Board's authority to require modification or the market will increase competition for these ser- termination of the activities of a bank holding comvices. pany or any of its subsidiaries as the Board finds First Interstate has indicated that it may, in certain necessary to assure compliance with, and to prevent instances, seek approval to acquire institutions whose evasion of, the provisions of the BHC Act and the Board's Regulations and Orders issued thereunder. 6. First Interstate also will provide its services for a limited period of time. The Board notes that, while First Interstate will manage assets on an ongoing basis, the owner of the assets will retain the right to make all final decisions regarding asset dispositions and to termi- 7. First Interstate's procedures will be subject to review by the nate First Interstate as an asset manager. Federal Reserve System. 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336 Federal Reserve Bulletin • May 1991 This transaction shall not be consummated later duly published (56 Federal Register 3473 (1991)). The than three months after the effective date of this time for filing comments has expired and the Board has Order, unless such period is extended for good cause considered the application and all comments received by the Board or by the Federal Reserve Bank of San in light of the public interest factors set forth in section Francisco, acting pursuant to delegated authority. 4(c)(8) of the BHC Act. By order of the Board of Governors, effective Sunburst proposes to provide stand-alone invest- March 25, 1991. ment advisory services, as well as full-service brokerage services. The Board has previously determined by Voting for this action action: Chairman Greenspan and regulation that the provision of investment advisory Governors Angell, Kelley, La Ware, and Mullins. services is a permissible nonbanking activity for bank holding companies under section 4(c)(8) of the BHC JENNIFER J. JOHNSON Act and section 225.25(b)(4) of Regulation Y, Associate Secretary of the Board 12 C.F.R. 225.25(b)(4). Sunburst proposes to engage in this activity subject to the limitations contained in Grenada Sunburst System Corporation the Board's Regulation Y. The Board also has deter- Grenada, Mississippi mined by order that full-service brokerage is a permissible nonbanking activity for bank holding compa- Order Approving Application to Provide Stand-Alone nies.2 Sunburst proposes to engage in full-service Investment Advisory Services, to Offer Investment brokerage in accordance with all of the conditions set Advisory and Securities Brokerage Services on a forth in those orders. Combined Basis, and to Act as a "Riskless In addition, Sunburst will provide discretionary Principal" in Buying and Selling Securities investment management for institutional customers only, under terms and conditions previously approved Grenada Sunburst System Corporation, Grenada, Mis- by the Board.3 Such discretionary investment managesissippi ("Grenada"), a bank holding company within ment services will not be provided for retail customthe meaning of the Bank Holding Company Act ers. ("BHC Act"), has applied for the Board's approval Grenada also proposes that Sunburst act as a "riskunder section 4(c)(8) of the BHC Act less principal" in buying and selling securities. The (12 U.S.C. § 1843(c)(8)), for its de novo subsidiary, Board previously has determined by order that, sub- Sunburst Financial Group, Inc., Jackson, Mississippi ject to certain prudential limitations established to ("Sunburst"), to provide stand-alone investment adaddress the potential for conflicts of interests, unsound visory services, to offer investment advisory and sebanking practices or other adverse effects, the procurities brokerage services on a combined basis to posed "riskless principal" activities are so closely institutional and retail customers ("full-service brorelated to banking as to be a proper incident thereto kerage"), as well as to purchase and sell all types of within the meaning of section (4)(c)(8) of the BHC Act. securities on the order of investors as a "riskless The Board also has determined that acting as agent in principal." purchasing and selling securities on the order of inves- Grenada, with approximately $1.8 billion in consoltors as a "riskless principal" does not constitute idated assets, operates banking subsidiaries in Missisunderwriting and dealing in securities for purposes of sippi and Louisiana. Grenada is the third largest banksection 20 of the Glass-Steagall Act, and that revenue ing organization in Mississippi and the 13th largest derived from this activity is not subject to the 10 banking organization in Louisiana.1 Grenada engages percent revenue limitation on ineligible securities undirectly and through subsidiaries in a variety of per- derwriting and dealing.4 Grenada has committed that missible nonbanking activities. Sunburst, a de novo Sunburst will conduct its "riskless principal" activisubsidiary, will be a broker-dealer registered with the ties using the same methods and procedures, and Securities Exchange Commission and subject to the subject to all of the prudential limitations approved by recordkeeping, reporting, fiduciary standards, and other requirements of the Securities Exchange Act of 1934 and the National Association of Securities Deal- 2. See PNC Financial Corporation, 75 Federal Reserve Bulletin 396 ers. (1989) ("PNC"); Bankers Trust New York Corporation, 74 Federal Notice of the application, affording interested per- Reserve Bulletin 695 (1988) ("Bankers Trust /") sons an opportunity to submit comments, has been 3. See J.P. Morgan and Company, Inc., 73 Federal Reserve Bulletin 810 (1987); The Chase Manhattan Corporation, 74 Federal Reserve Bulletin 704 (1988). 4. See J.P. Morgan and Company, Inc., 76 Federal Reserve 1. Asset data are as of September 30, 1990. Rankings are as of June Bulletin 26 (1990) ("J.P. Morgan"); Bankers Trust New York Corpo- 30, 1990. ration, 75 Federal Reserve Bulletin 829 (1989) ("Bankers Trust II"). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 337 the Board in the Bankers Trust II and J.P. Morgan of the BHC Act (12 U.S.C. § 1843(c)(8)), and section orders. 225.23(a)(3) of the Board's Regulation Y (12 C.F.R. Under the framework established in this and prior 225.23(a)(3)) to engage de novo through its subsidiary, decisions, consummation of this proposal is not likely Mitsubishi Capital Market Services, Inc., New York, to result in any significantly adverse effects, such as New York ("Company"), in the following activities: undue concentration of resources, decreased or unfair (1) Intermediating in the international swap markets competition, conflicts of interests, or unsound banking by acting as an originator and principal in interest practices. Consummation of the proposal would pro- rate swap and currency swap transactions; vide added convenience to Grenada's customers. In (2) Acting as an originator and principal with respect addition, the Board expects that the de novo entry of to certain interest rate and currency risk-manage- Grenada into the market for these services would ment products such as caps, floors and collars, as increase the level of competition among providers of well as options on swaps, caps, floors and collars these services. Accordingly, the Board has determined ("swap derivative products"); that performance of the proposed activities by (3) Acting as a broker or agent with respect to the Grenada can reasonably be expected to produce public foregoing transactions or instruments; and benefits which would outweigh adverse effects under (4) Acting as adviser to institutional customers rethe proper incident to banking standard of section garding financial strategies involving interest rate 4(c)(8) of the BHC Act. and currency swaps and swap derivative products. Based on the above, the Board has determined to, Notice of the application, affording interested perand hereby does, approve the application subject to all sons an opportunity to submit comments, has been of the terms and conditions set forth in this order, and published (55 Federal Register 52,218 (1990)). The in the above-noted Board orders that relate to these time for filing comments has expired, and the Board activities. The Board's determination is also subject to has considered the application and all comments reall of the conditions set forth in the Board's Regulation ceived in light of the factors set forth in section 4 of the Y, including those in sections 225.4(d) and 225.23(b), BHC Act. and to the Board's authority to require modification or With total consolidated assets equivalent to approxtermination of the activities of a bank holding comimately $354 billion, Mitsubishi is the fourth largest pany or any of its subsidiaries as the Board finds banking organization in the world.1 In the United necessary to assure compliance with, and to prevent States, Mitsubishi owns a bank subsidiary in San evasion of, the provisions of the BHC Act and the Francisco, California; an agency in Houston, Texas; Board's regulations and orders issued thereunder. and branches in New York, New York; Chicago, This transaction shall not be consummated later Illinois; and Los Angeles, California. It engages in than three months after the effective date of this order, limited trust activities, lending, investment advising, unless such period is extended for good cause by the and real and personal property leasing through subsid- Board or by the Federal Reserve Bank of St. Louis, iaries in New York, New York, and futures commispursuant to delegated authority. sion merchant activities through a subsidiary in Chi- By order of the Board of Governors, effective cago, Illinois. March 27, 1991. The Board previously has determined by order that the proposed activities are closely related to banking Voting for this action action: Chairman Greenspan and and permissible for bank holding companies within the Governors Angell, Kelley, LaWare, and Mullins. meaning of section 4(c)(8) of the BHC Act.2 Mitsubishi JENNIFER J. JOHNSON proposes to engage in these swap activities in accord- Associate Secretary of the Board ance with all of the provisions and conditions set forth in these orders.3 The Mitsubishi Bank, Limited Tokyo,Japan 1. Asset and ranking data are as of March 31, 1990. 2. See, e.g., The Sanwa Bank, Limited, 77 Federal Reserve Bulletin Order Approving Application to Engage in Various 64 (1991); The Fuji Bank, Limited, 76 Federal Reserve Bulletin 768 Interest Rate and Currency Swap Activities (1990); The Sumitomo Bank, Limited, 75 Federal Reserve Bulletin 582 (1989). 3. As proposed by Mitsubishi, Company typically would be willing, The Mitsubishi Bank, Limited, Tokyo, Japan ("Mit- at the request of a customer, to price and enter into a swap or swap subishi"), a bank holding company within the meaning derivative product transaction either as purchaser or seller. Mitsubishi undertakes that Company will not exceed the position limits, deof the Bank Holding Company Act ("BHC Act"), has scribed below, established from time to time with respect to its swap applied for the Board's approval under section 4(c)(8) and swap derivative products. As indicated above, the Board previ- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

338 Federal Reserve Bulletin • May 1991 In order to approve this application, the Board is compliance with the management-imposed basis risk required to determine that the performance of the limits.4 proposed activities by Mitsubishi "can reasonably be In addition, Company intends to minimize operaexpected to produce benefits to the public . . . that tions risk through the recruitment and training of an outweigh possible adverse effects, such as undue experienced back-office support staff and the use of a concentration of resources, decreased or unfair com- separate operational and data processing structure for petition, conflicts of interests, or unsound banking processing swap and hedging transactions. practices." 12 U.S.C. § 1843(c)(8). In order to minimize any possible conflicts of inter- Company appears to be capable of managing the ests between Company's role as a principal or broker risks associated with the proposed activities. Mitsub- in swap transactions and its role as advisor to potential ishi, which has extensive experience in lending and counterparties, Company will disclose to each cusfinancing services worldwide, has undertaken to pro- tomer the fact that Company may have an interest as a vide credit screening for all potential counterparties of counterparty principal or broker in the course of Company through its credit desk services in New action ultimately chosen by the customer. Also, in any York, New York. In appropriate cases, Company will case in which Company has an interest in a specific obtain a letter of credit on behalf of, or collateral from, transaction as an intermediary or principal, Company a counterparty. In addition, Company will establish will advise its customer of that fact before recomseparate credit risk exposure limits for each swap mending participation in that transaction.5 In addition, counterparty. Company will monitor this exposure on Company's advisory services will be offered only to an ongoing basis, in the aggregate and with respect to sophisticated institutional customers who would be each counterparty. Senior management will be period- unlikely to place undue reliance on investment advice ically informed of the potential risk to which Company received and better able to detect investment advice is exposed. motivated by self-interest.6 In order to manage the risk associated with adverse The Board has expressed its concerns regarding changes in interest or currency exchange rates ("price conflicts of interests and related adverse effects that, risk"), Company will seek to match all the swaps and absent certain limitations, may be associated with related instruments in which it is principal and will financial advisory activities. In order to address these hedge any unmatched positions pending a suitable potential adverse effects, Mitsubishi has committed match. Company will not enter into unmatched or that: unhedged swaps for its own account for speculative (1) Company's financial advisory activities will not purposes. Company's management will set absolute encompass the performance of routine tasks or limits on the level of risk to which its swap portfolio operations for a client on a daily or continuous may be exposed. Company's exposure to price risk basis; will be monitored by both business management and internal auditing personnel to guarantee compliance with the risk limitations imposed by management. 4. Mitsubishi will monitor risk factors unique to options on a Auditing personnel will report directly to senior man- "real-time" basis and has established risk limits with respect to all of these factors. Mitsubishi is setting limits on other risks related to agement to ensure that any violations of portfolio risk options besides volatility risk. limitations are reported and corrected. 5. In any transaction in which Company arranges a swap transaction With respect to the risk associated with the potential between an affiliate and a third party, the third party will be informed that Company is acting on behalf of an affiliate. for differences between the floating rate indices on two 6. Mitsubishi defines an institutional customer as: matched or hedged swaps ("basis risk"), Company's (A) a bank (acting in an individual or fiduciary capacity), an insurance company, a registered investment company under the management will impose absolute limits on the aggre- Investment Company Act of 1940, or a corporation, partnership, gate basis risk to which Company's swaps portfolio trust, proprietorship, organization or institutional entity with assets may be exposed. If the level of risk threatens to exceeding $1 million that regularly engages in transactions in securities; exceed the limits at any time, Company will actively (B) an employee benefit plan with assets exceeding $1 million or seek to enter into matching transactions for its un- whose investment decisions are made by a bank, insurance commatched, hedged positions. Company's internal audit- pany or investment advisor registered under the Investment Advisers Act of 1940; ing staff, together with management, will monitor (C) a natural person whose individual net worth (or joint net worth with his or her spouse) at the time of receipt of Company's services exceeds $1 million; (D) a broker-dealer or options trader registered under the Securities Exchange Act of 1934; or other securities, investment or banking professional; ously has approved these activities as permissible for bank holding (E) any government or government entity; or companies. Mitsubishi has characterized these activities as "market- (F) an entity all of the equity owners of which are institutional making" in swaps and swap derivative products. customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 339 (2) Disclosure will be made to each potential client provisions of the BHC Act and the Board's regulations of Company that Company is an affiliate of Mitsub- and orders issued thereunder. ishi; This transaction shall not be consummated later (3) Company will not make available to Mitsubishi than three months after the effective date of this order, or any of Mitsubishi's subsidiaries confidential in- unless such period is extended for good cause by the formation received from Company's clients, except Board or by the Federal Reserve Bank of San Franwith the client's consent; and cisco, pursuant to delegated authority. (4) Advice rendered by Company on an explicit fee By order of the Board of Governors, effective basis will be without regard to correspondent bal- March 13, 1991. ances maintained by a client of Company at Mitsubishi or any of Mitsubishi's depository subsidiaries. Voting for this action action: Governors Angell, Kelley, La Ware, and Mullins. Absent and not voting: Chairman In every case involving a nonbanking acquisition by Greenspan. a bank holding company under section 4 of the BHC Act, the Board considers the financial condition and JENNIFER J. JOHNSON resources of the applicant and its subsidiaries and the Associate Secretary of the Board effect of the transaction on these resources.7 After making adjustments to reflect Japanese banking and accounting principles, including consideration of a The Sumitomo Bank, Limited portion of unrealized appreciation in Mitsubishi's port- Osaka, Japan folio of equity securities, the Board concludes that financial considerations are consistent with approval of this application. The managerial resources of Mit- Order Approving Application to Engage in Certain subishi are also consistent with approval. Nonbanking Activities Consummation of the proposal would provide added convenience to Mitsubishi's customers. In addition, the Board expects that the de novo entry of Mitsubishi The Sumitomo Bank, Limited, Osaka, Japan ("Sumiinto the market for these activities would increase the tomo"), a bank holding company within the meaning level of competition among providers of these serof the Bank Holding Company Act ("BHC Act"), has vices. Under the framework established in this and applied for the Board's approval under section 4(c)(8) prior decisions, consummation of this proposal is not of the BHC Act (12 U.S.C. § 1843(c)(8)) for its wholly likely to result in any significant adverse effects, such owned subsidiary, Sumitomo Bank Securities, Inc., as undue concentration of resources, decreased or New York, New York ("Company") to engage unfair competition, conflicts of interests, or unsound de novo in the following activities: banking practices. Accordingly, the Board has deter- (1) To act as agent in the private placement of all mined that the performance of the proposed activities types of securities, including providing related adby Mitsubishi can reasonably be expected to produce visory services; benefits to the public. (2) To buy and sell all types of securities on the Based on the above, the Board has determined to, order of investors as a "riskless principal"; and hereby does, approve the application subject to (3) To provide investment advisory and brokerage the commitments made by Mitsubishi, as well as all of services on a combined basis ("full-service brokerthe terms and conditions set forth in this order and in age") to retail and institutional customers; the above-noted Board orders that relate to these (4) To provide investment advisory services to retail activities. The Board's determination is also subject to and institutional customers pursuant to sections all of the conditions set forth in Regulation Y, includ- 225.25(b)(4)(i)-(v) of Regulation Y (12 C.F.R. ing those in sections 225.4(d) and 225.23(b), and to the 225.25(b)(4)(i)-(v)); Board's authority to require modification or termina- (5) To provide securities brokerage services and tion of the activities of a bank holding company or any related securities credit services pursuant to section of its subsidiaries as the Board finds necessary to 225.25(b)(15) of the Board's Regulation Y assure compliance with, and to prevent evasion of, the (12 C.F.R. 225.25(b)(15)>; and (6) To underwrite and deal in obligations of the United States, general obligations of the states and their political subdivisions, and other obligations 7. 12 C.F.R. 225.24; The Fuji Bank, Limited, 75 Federal Reserve that a state member bank of the Federal Reserve Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal Reserve Bulletin 155, 156 (1987). System may underwrite and deal in ("bank-eligible Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

340 Federal Reserve Bulletin • May 1991 securities") pursuant to section 225.25(b)(16) of the less principal" activities using the same methods and Board's Regulation Y (12 C.F.R. 225.25(b)(16)).» procedures, and subject to the same prudential limitations established by the Board in approving this activ- Notice of the application, affording interested perity, as modified to reflect Sumitomo's status as a sons an opportunity to submit comments, has been foreign bank.4 duly published (56 Federal Register 2181 (1991)). The Sumitomo has proposed to have its U.S. affiliates, time for filing comments has expired, and the Board branches or agencies extend credit to an issuer whose has considered the application and all comments redebt securities have been placed by Company where ceived in light of the public interest factors set forth in the proceeds would be used to pay the principal section 4(c)(8) of the BHC Act. amount of the securities at maturity. Sumitomo has Sumitomo, with total consolidated assets of $406.6 committed that these extensions of credit will conform billion, is the third largest banking organization in the to the limitations set forth in the Board's decision in world.2 Sumitomo controls banks in California and J.P. Morgan, including the requirements that a period Hawaii. In addition, Sumitomo operates branches in of at least three years elapse from the time of the California, Illinois, and New York, and agencies in placement of the securities to the decision to extend California, Georgia, and Texas. Sumitomo also encredit, that Sumitomo maintain adequate documentagages in various nonbanking activities through a numtion of these transactions and decisions, and that the ber of subsidiaries. Company will be a broker-dealer extensions of credit meet prudent and objective stanregistered with the Securities Exchange Commission dards, as well as the standards set out in section 23B of and subject to the record keeping, reporting, fiduciary the Federal Reserve Act.5 The Federal Reserve Bank standards, and other requirements of the Securities of San Francisco will closely review loan documenta- Exchange Act of 1934 and the National Association of tion of U.S. affiliates to ensure that an independent Securities Dealers. and thorough credit evaluation has been undertaken with respect to the participation of the bank in these Private Placement and "Riskless Principal" credit extensions to issuers of securities privately Activities placed by an agent affiliated with the bank. Sumitomo also has proposed to have Company The Board previously has determined by order that, place securities with its parent holding company or subject to certain prudential limitations that address with a nonbank subsidiary of the parent company the potential for conflicts of interests, unsound bankconsistent with the Board's ruling in J.P. Morgan. In ing practices or other adverse effects, the proposed this regard, Sumitomo will establish both individual private placement and "riskless principal" activities and aggregate limits on the investment by affiliates of are so closely related to banking as to be a proper Company in any particular issue of securities that is incident thereto within the meaning of section 4(c)(8) placed by Company and will establish appropriate of the BHC Act. The Board also has determined that internal policies, procedures, and limitations regarding acting as agent in the private placement of securities, the amount of securities of any particular issue placed and purchasing and selling securities on the order of by Company that may be purchased by Sumitomo and investors as a "riskless principal" do not constitute each of its nonbanking subsidiaries, individually and in underwriting and dealing in securities for purposes of the aggregate.6 These policies and procedures, as well section 20 of the Glass-Steagall Act, and that revenue as the purchases themselves, will be reviewed by the derived from these activities is not subject to the 10 Federal Reserve Bank of San Francisco. percent revenue limitation on ineligible securities underwriting and dealing.3 Sumitomo has committed that Company will conduct its private placement and "risk- 4. Creditanstalt-Bankverein, 11 Federal Reserve Bulletin 183 (1991); The Mitsui Taiyo Kobe Bank, Limited, 11 Federal Reserve Bulletin 116 (1991); Canadian Imperial Bank of Commerce/The Royal Bank of 1. Company will also engage in the following incidental activities: Canada/Barclays PLC, 76 Federal Reserve Bulletin 158 (1990); J.P. engaging in repurchase and reverse repurchase transactions on such Morgan; Bankers Trust. securities, collateralized borrowing and lending of such securities, and 5. 12 U.S.C. § 371c-l. providing clearing, settling, accounting, record keeping and other 6. The limit established shall not exceed 50 percent of the issue ancillary services to those counterparties with which it deals that do being placed. Additionally, in the development of these policies and not maintain accounts with clearing agencies. The Nippon Credit procedures, Sumitomo will incorporate, with respect to placements of Bank, Ltd., 75 Federal Reserve Bulletin 308 (1989); The Long-Term securities, the limitations established by the Board in condition 12 of Credit Bank of Japan, 14 Federal Reserve Bulletin 573 (1988); The its order regarding aggregate exposure of Sumitomo's U.S. subsidiar- Sanwa Bank, Limited, 74 Federal Reserve Bulletin 578 (1988). ies and offices on a consolidated basis to any single customer whose 2. Data are as of March 31, 1990. securities are underwritten or dealt in by Company. J.P. Morgan & 3. J.P. Morgan and Company, Inc., 76 Federal Reserve Bulletin 26 Company, Incorporated, The Chase Manhattan Corporation, Bank- (1990) {"J.P. Morgan")-, Bankers Trust New York Corporation, 75 ers Trust New York Corporation, Citicorp and Security Pacific Federal Reserve Bulletin 829 (1989) ("Bankers Trust"). Corporation, 75 Federal Reserve Bulletin 192 (1989). 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Legal Developments 341 Brokerage, Investment Advisory, Underwriting and capital framework, Sumitomo's capital ratio meets Dealing Activities United States standards. Accordingly, the Board concludes that financial considerations are consistent with The Board previously has determined by order that approval of this application. The managerial resources full-service brokerage is a permissible nonbanking of Sumitomo are also consistent with approval. activity for bank holding companies under section Consummation of the proposal would provide added 4(c)(8) of the BHC Act.7 Sumitomo proposes to engage convenience to Sumitomo's customers. In addition, in full-service brokerage in accordance with all of the the Board expects that the de novo entry of Sumitomo conditions set forth in these orders. into the market for these services would increase the In addition, Company will provide discretionary level of competition among providers of these serinvestment management for institutional customers vices. Under the framework established in this and only, under the same terms and conditions as previ- prior decisions, consummation of this proposal is not ously approved by the Board.8 Such discretionary likely to result in any significant adverse effects, such investment management services will not be provided as undue concentration of resources, decreased or for retail customers. unfair competition, conflicts of interests, or unsound Sumitomo also proposes that Company engage in banking practices. Accordingly, the Board has deterinvestment advisory and securities brokerage activi- mined that the performance of the proposed activities ties on a separate basis pursuant to the Board's by Sumitomo can reasonably be expected to produce Regulation Y.9 Finally, Sumitomo proposes that Com- benefits to the public. pany underwrite and deal in securities that state mem- Based on the foregoing and other facts of record, the ber banks are permitted to underwrite and deal in Board has determined to, and hereby does, approve under section 16 of the Banking Act of 1933,10 and as the application subject to the commitments made by permitted by section 225.25(b)(16) of the Board's Sumitomo, as well as all of the terms and conditions Regulation Y.u set forth in this order and in the above-noted Board orders that relate to these activities. The Board's Financial Factors, Managerial Resources and Other determination is also subject to all of the conditions set Considerations forth in Regulation Y, including those in sections 225.4(d) and 225.23(b), and to the Board's authority to In order to approve this application, the Board is require modification or termination of the activities of required to determine that the performance of the a bank holding company or any of its subsidiaries as proposed activities of Sumitomo "can reasonably be the Board finds necessary to assure compliance with, expected to produce benefits to the public . . . that and to prevent evasion of, the provisions of the BHC outweigh possible adverse effects, such as undue Act and the Board's regulations and orders issued concentration of resources, decreased or unfair com- thereunder. petition, conflicts of interests, or unsound banking This transaction shall not be consummated later practices." 12 U.S.C. § 1843(c)(8). than three months after the effective date of this order, In every case involving a nonbanking acquisition by unless such period is extended for good cause by the a bank holding company under section 4 of the BHC Board or by the Federal Reserve Bank of San Fran- Act, the Board considers the financial condition and cisco, pursuant to delegated authority. resources of the applicant and its subsidiaries and the By order of the Board of Governors, effective effect of the transaction on these resources.12 After March 6, 1991. making adjustments to reflect Japanese banking and accounting principles, including consideration of a Voting for this action action: Governors Angell, La Ware, portion of unrealized appreciation in Sumitomo's port- and Mullins. Voting against this action: Governor Seger. Absent and not voting: Chairman Greenspan and Governor folio of equity securities consistent with the Basle Kelley. JENNIFER J. JOHNSON 7. See PNC Financial Corporation, 75 Federal Reserve Bulletin 396 Associate Secretary of the Board (1989); Bankers Trust New York Corporation, 74 Federal Reserve Bulletin 695 (1988). 8. See J.P. Morgan and Company, Inc., 73 Federal Reserve Bulletin 810 (1987). Dissenting Statement of Governor Seger 9. 12 C.F.R. 225.25(b)(4) and (15). 10. 12 U.S.C. §§ 24 (Seventh) and 335. 11. 12 C.F.R. 225.25(b)(16). I dissent from the Board's action in this case. I believe 12. 12 C.F.R. 225.24; The Fuji Bank, Limited, 75 Federal Reserve that foreign banking organizations whose capital, Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal Reserve Bulletin 155, 156 (1987). based on U.S. accounting principles, is below the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

342 Federal Reserve Bulletin • May 1991 Board's minimum capital guidelines for U.S. banking the Board required that savings associations acquired organizations have an unfair competitive advantage in by bank holding companies conform their direct and the United States over domestic banking organiza- indirect activities to those permissible for bank holding tions. In my view, such foreign organizations should companies under section 4 of the BHC Act. U.S. be judged against the same financial and managerial Bancorp has committed to conform all activities of standards, including the Board's capital adequacy HeartFed to the requirements of section 4 and Reguguidelines, as are applied to domestic banking organi- lation Y.2 In order to approve the application, the zations. Specifically, I believe that the capital ade- Board also is required by section 4(c)(8) of the BHC quacy of foreign banking organizations should be Act to determine that the ownership and operation of measured without giving these organizations the ben- HeartFed by U.S. Bancorp "can reasonably be exefit of adjustments that are not available to United pected to produce benefits to the public . . . that States banking organizations. outweigh possible adverse effects, such as undue In addition, I am concerned that while some prog- concentration of resources, decreased or unfair comress is being made in opening Japanese markets to petition, conflicts of interests, or unsound banking U.S. banking organizations and other financial institu- practices." 12 U.S.C. § 1843(c)(8). tions, U.S. banking organizations, in my opinion, are U.S. Bancorp, which operates eight subsidiary still far from being afforded the full opportunity to banks in Washington, Oregon, California and Utah, is compete in Japan. the 73rd largest depository organization in California, controlling deposits of $230.1 million, representing March 6, 1991 less than 1 percent of the total deposits in the state.3 Heart Savings operates offices in several Northern U.S. Bancorp California counties, and is the 62nd largest depository Portland, Oregon organization in California, controlling deposits of $704.6 million. After consummation of the proposed Order Approving the Acquisition of a Savings acquisition, U.S. Bancorp will be the 17th largest Association depository organization in California with aggregate deposits of $934.7 million, representing less than one U.S. Bancorp, Portland, Oregon ("U.S. Bancorp"), a percent of the total deposits in the state. In the Board's bank holding company within the meaning of the Bank view, consummation of the proposal would not have a Holding Company Act ("BHC Act"), has applied significantly adverse effect on the concentration of pursuant to section 4(c)(8) of the BHC Act resources in depository institutions in California. (12) U.S.C. § 1843(c)(8)) to acquire HeartFed Finan- U.S. Bancorp and Heart Savings compete directly cial Corporation, Auburn, California ("HeartFed"), in two banking markets in California.4 In the Placer and its wholly owned subsidiary, Heart Federal Sav- County banking market,5 U.S. Bancorp is the eighth ings and Loan Association, Auburn, California largest of thirteen depository institutions, controlling ("Heart Savings"), a savings association, pursuant to $24.3 million in deposits, representing 4.2 percent of section 225.25(b)(9) of the Board's Regulation Y deposits of banks and thrift institutions in the market (12 C.F.R. 225.25(b)(9)).' Notice of the application, affording interested per- 2. HeartFed currently engages indirectly in impermissible real sons an opportunity to submit comments, has been estate and insurance activities through two existing subsidiaries. U.S. published (55 Federal Register 42,896 (1990)). The Bancorp has committed to divest itself of impermissible real estate time for filing comments has expired, and the Board investment and development activities within two years of consummation of the proposal. No new impermissible projects or investments has considered the application and all comments rewill be undertaken during this period. U.S. Bancorp also has commitceived in light of the public interest factors set forth in ted not to engage in any impermissible securities activities, and to section 4(c)(8) of the BHC Act. terminate any impermissible insurance activities on consummation. HeartFed may continue to service outstanding insurance policies sold The Board has previously determined that the operby HeartFed for a period of two years from consummation of the ation of a savings association is closely related to proposal without renewing those policies. banking and permissible for bank holding companies. 3. State and market deposit data are as of June 30, 1989. 4. The pre-consummation market share statistics are based on 12 C.F.R. 225.25(b)(9). In making this determination, calculations in which the deposits of HeartFed and all other savings associations are included at 50 percent. Upon consummation, HeartFed will be affiliated with a commercial banking organization; thus, on a pro forma basis, the deposits of HeartFed are included at 1. U.S. Bancorp is proposing to merge HFF Merger Corp., an 100 percent, while the deposits of other savings associations continue interim corporation organized solely to facilitate the acquisition, into to be included at 50 percent unless otherwise indicated. HeartFed, after which HeartFed will be dissolved or merged with and 5. The Placer County banking market consists of the cities and into U.S. Bancorp. Heart Savings thereafter will be a direct savings towns of Auburn, Colfax, Foresthill, Lincoln, and Meadow Vista, all association subsidiary of U.S. Bancorp. in Placer County, California. 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Legal Developments 343 ("market deposits"). Heart Savings is the third largest interest factors that it is required to consider under depository institution in the market, controlling $63.6 section 4(c)(8) of the BHC Act is favorable and conmillion in deposits, representing 10.9 percent of mar- sistent with approval. ket deposits. Upon consummation of this proposal, Accordingly, the Board has determined that the U.S. Bancorp would remain the third largest deposi- proposed application pursuant to section 4(c)(8) of the tory organization in the Placer County market, with BHC Act should be, and hereby is, approved. This 15.1 percent of market deposits, and the Herfindahl- determination is subject to all the conditions set forth Hirschman Index ("HHI") would increase by 204 in the Board's Regulation Y, including sections points, to a level of 1456.6 225.4(d) and 225.23(b)(3), and to the Board's authority In the Sacramento banking market,7 U.S. Bancorp to require such modification or termination of the is the 26th largest of 51 depository institutions, con- activities of a bank holding company or any of its trolling $62.6 million in deposits, representing less subsidiaries as the Board finds necessary to assure than one percent of deposits of banks and thrift compliance with, or to prevent evasion of, the proviinstitutions in the market. Heart Savings is the 25th sions and purposes of the BHC Act and the Board's largest depository institution in the market, controlling regulations and orders issued thereunder. $65.2 million in deposits, representing less than one The transactions approved in this Order shall be percent of market deposits. Upon consummation of made not later than three months after the effective this proposal, U.S. Bancorp would become the 16th date of this Order, unless such period is extended for largest depository organization in the Sacramento good cause by the Board or by the Federal Reserve market, with 1.4 percent of market deposits. Based on Bank of San Francisco, pursuant to delegated authorall the facts of record, the Board has determined that ity. consummation of this proposal would not have a By order of the Board of Governors, effective significantly adverse effect on the concentration of March 25, 1991. resources or on competition in any relevant banking market. Voting for this action action: Chairman Greenspan and The financial and managerial resources of U.S. Governors Angell, Kelley, LaWare, and Mullins. Bancorp, HeartFed, and their depository institution JENNIFER J. JOHNSON subsidiaries are, in the context of this proposal, con- Associate Secretary of the Board sistent with approval. Upon consummation of this proposal, U.S. Bancorp, HeartFed and their respec- Orders Issued Under Sections 3 and 4 of the tive depository institution subsidiaries would meet all Bank Holding Company Act applicable capital requirements. There is no evidence in the record that consummation of this proposal is likely to result in any significantly adverse effects, Norwest Corporation such as undue concentration of resources, decreased Minneapolis, Minnesota or unfair competition, conflicts of interest, or unsound banking practices. Based on all the facts of record, the Order Approving the Merger of Bank Holding Board has determined that the balance of the public Companies Norwest Corporation, Minneapolis, Minnesota ("Nor- 6. Under the revised Department of Justice Merger Guidelines, 49 west"), a bank holding company within the meaning of Federal Register 26,823 (1984), a market in which the post-merger HHI is between 1000 and 1800 is considered moderately concentrated. the Bank Holding Company Act ("BHC Act"), has The Justice Department has indicated that in such markets it is applied for the Board's approval under section 3(a)(5) unlikely to challenge a merger if an increase in the HHI is less than 100 points. Any market in which the post-merger HHI is over 1800 is of the BHC Act (12 U.S.C. § 1842(a)(5)) to merge with considered highly concentrated, and the Justice Department has United Banks of Colorado, Inc., Denver, Colorado indicated that it is likely to challenge a merger that increases the HHI ("United Banks"), and thereby to acquire the 40 by more than 50 points unless other factors indicate that the merger will not substantially lessen competition. The Justice Department has subsidiary banks of United Banks listed in the Appeninformed the Board that a bank merger or acquisition generally will dix to this Order. Norwest has also applied for the not be challenged (in the absence of other factors indicating anticompetitive effects) unless the post-merger HHI is at least 1800 and the Board's approval under section 4(c)(8) of the BHC Act merger increases the HHI by at least 200 points. The Justice Depart- to acquire the nonbanking subsidiaries of United ment has stated that the higher than normal HHI thresholds for Banks listed in the Appendix. screening bank mergers for anticompetitive effects implicitly recognizes the competitive effect of limited-purpose lenders and other Notices of the applications, affording interested nondepository financial entities. persons an opportunity to submit comments, have 7. The Sacramento banking market is approximated by the Sacrabeen duly published (55 Federal Register 46,577 and mento RMA, which consists of portions of El Dorado, Placer, Sacramento and Yolo Counties, all in California. 46,997 (1990)). The time for filing comments has ex- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

344 Federal Reserve Bulletin • May 1991 pired, and the Board has considered the applications of $5.1 billion in Colorado, representing 22.9 percent and all comments received in light of the factors set of the total deposits in commercial banking organizaforth in sections 3(c) and 4(c)(8) of the BHC Act. tions in the state. Consummation of the proposal Section 3(d) of the BHC Act, the Douglas Amend- would not result in significantly adverse effects on the ment, prohibits the Board from approving an applica- concentration of banking resources in Minnesota or tion by a bank holding company to acquire control of Colorado. any bank located outside of the bank holding com- Norwest does not compete directly with United pany's home state, unless such acquisition is "specif- Banks in any banking market. Accordingly, consumically authorized by the statute laws of the State in mation of this proposal would not result in a signifiwhich [the] bank is located, by language to that effect cantly adverse effect on competition in any relevant and not merely by implication."1 Norwest's home banking market. In light of the existence of numerous state is Minnesota, and United Banks's home state is potential entrants into the relevant banking markets, Colorado.2 Under the statute laws of Colorado, effec- consummation of this proposal also would not result in tive January 1, 1991, any out-of-state bank holding a significantly adverse effect on probable future comcompany may acquire financial institutions located in petition in any relevant market. Colorado so long as certain requirements are met.3 In considering the convenience and needs of the Norwest's acquisition meets all of these require- communities to be served, the Board has taken into ments.4 Accordingly, Norwest's proposal to acquire account the record of the subsidiary banks of both United Banks is not barred by the Douglas Amend- Norwest and United Banks under the Community ment. Reinvestment Act (12 U.S.C. § 2901 et seq.) Norwest, with total deposits of $19.9 billion, oper- ("CRA"). The CRA requires the federal financial ates 34 banking subsidiaries located in Minnesota, supervisory agencies to encourage financial institu- Wisconsin, Wyoming, Illinois, Indiana, Arizona, tions to help meet the credit needs of the local com- Iowa, Montana, Nebraska, North Dakota, and South munities in which they operate consistent with the safe Dakota.5 Norwest is the second largest banking orga- and sound operation of such institutions. To accomnization in Minnesota, controlling approximately $10.6 plish this end, the CRA requires the appropriate fedbillion in deposits in Minnesota, representing 25.0 eral supervisory authority to "assess an institution's percent of the total deposits in commercial banking record of meeting the credit needs of its entire comorganizations in the state. United Banks is the largest munity, including low- and moderate-income neighbanking organization in Colorado, controlling deposits borhoods, consistent with the safe and sound operaof $5.1 billion, representing 22.9 percent of the total tion of the institution," and to take this record into deposits in commercial banking organizations in the account in its evaluation of bank holding company state. Upon consummation of the proposed acquisi- applications.6 tion, Norwest would become the largest commercial In this regard, the Board has received comments banking organization in Colorado, controlling deposits from community groups and individuals (collectively, "Protestants") critical of the CRA performance of Norwest and United Banks.7 Protestants generally 1. 12 U.S.C. § 1842(d). allege that Norwest has failed to meet the credit and 2. A bank holding company's home state is that state in which the operations of the bank holding company's banking subsidiaries were servicing needs of low- and moderate-income and principally conducted on July 1, 1966, or the date on which the minority communities, primarily in the Minneapoliscompany became a bank holding company, whichever is later. 3. These requirements include that the Colorado bank holding St. Paul and Duluth areas, as well as Minnesota farm company must have been in operation since July 1,1988, or for at least communities. The Board addressed these CRA issues five years at the time of the acquisition; the acquiring bank holding in its recent Order approving Norwest's application to company may not control more than 25 percent of the aggregate of all federally-insured financial institution deposits in Colorado; the acquir- acquire Chalfen Bankshares, Inc., Anoka, Minnesota ing bank holding company must have a total capital to total assets ratio ("Chalfen").8 Protestants, however, have raised addiof 6 percent or more; the name that the acquiring bank holding company proposes to use for the conduct of business in Colorado is not identical to or deceptively similar to the name of an existing Colorado bank or bank holding company or likely to cause the public 6. 12 U.S.C. § 2903. to be confused, deceived, or mistaken; and the acquiring bank holding 7. The Board also has considered comments on this application filed company must receive a certificate from the Colorado banking board after the close of the comment period which raise substantially similar certifying that the acquisition complies with Colorado law. issues. Under the Board's rules, the Board may in its discretion take 4. United Banks has been in operation since July 1, 1988; Norwest into consideration the substance of such comments. 12 C.F.R. will not control 25 percent or more of the aggregate of all federally- 212.3(e). insured financial institution deposits in Colorado; and Norwest has a 8. See Norwest Corporation, 77 Federal Reserve Bulletin 110 total capital to total assets ratio that exceeds 6 percent. (1991). In that case, the Board reviewed the CRA record of Norwest 5. Data are as of September 30, 1990, and are adjusted for all and its subsidiary banks with regard to the credit and servicing needs Norwest acquisitions that have been approved through December 31, of low-and moderate-income, minority and farm communities and 1990. found that record to be consistent with approval. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 345 tional concerns. These issues include: subsidiary banks and six of which are offices of Nor- (i) the accessibility and advertisement of Nor- west Mortgage. Four of these offices are located within west's Community Home Ownership Program Minneapolis-St. Paul and in or near low- and moder- ("CHOP") to low- and moderate-income commu- ate-income communities, including two downtown ofnities; fices that are accessible from low- and moderate- (ii) Norwest's mortgage subsidiary's record of income communities by public transportation. lending to low- and moderate-income communi- Norwest's promotional materials indicate that applicaties in Milwaukee, Wisconsin; and tions for second mortgages under CHOP for home (iii) United Banks's record of meeting the credit improvement and consumer loans are available needs of small businesses and low- and moderate- through all Norwest offices in the Minneapolis-St. Paul income communities in Denver, Colorado.9 area.13 Norwest has stated that its Minneapolis- St. Paul bank branches will promote CHOP. Norwest The Board has carefully reviewed the CRA perforhas also placed advertisements for CHOP in commumance record of Norwest, United Banks, and their nity newspapers, including those servicing low- and bank subsidiaries, as well as the comments of Protesmoderate-income communities. tants and Norwest's response to those comments, in With regard to Protestants' allegations regarding light of the CRA, the Board's regulations, and the United Banks's record under the CRA, the record jointly issued Statement of the Federal Financial Suindicates that United Banks has been active in extendpervisory Agencies Regarding the Community Reining conventional home purchase, housing rehabilitavestment Act ("Agency CRA Statement").10 The tion and small business loans, as well as participating Agency CRA Statement provides guidance regarding in government-guaranteed loan programs for housing the types of policies and procedures that the superviand small businesses. United Banks's lead bank resory agencies believe financial institutions should have cently opened an office in the Five Points area of in place in order to fulfill their responsibilities under Denver, which is predominately low- and moderatethe CRA on an ongoing basis, and the procedures that income, in order to strengthen its lending activity to the supervisory agencies will use during the applicalow- and moderate-income communities. United tion process to review an institution's CRA compli- Banks's Home Mortgage Disclosure Act ("HMDA") ance and performance. The Agency CRA Statement data indicate that United Banks's loan policies do not also suggests that decisions by agencies to allow discriminate against low- and moderate-income or financial institutions to expand will be made pursuant minority communities in Denver.14 In addition, Norto an analysis of the overall CRA performance of the institution.11 Initially, the Board notes that all of the subsidiary banks of both Norwest and United Banks have re- 13. The Board notes that Norwest's CHOP initiative was begun less than a year ago and has not yet been fully implemented. For example, ceived satisfactory ratings from their primary regula- some features of the program—down payment assistance, coordinators in the most recent examinations of their CRA tion with community mortgage counseling agencies, and special price limits to accommodate duplex purchases—have been implemented performance. The Agency CRA Statement provides only recently. In addition, the Board has reviewed Protestants' that, although CRA examination reports do not pro- allegations regarding Norwest's record of meeting the credit needs of vide conclusive evidence of an institution's CRA low- and moderate-income communities in Milwaukee, Wisconsin. Protestants allege that there have been some disparities in the 1989 record, these reports will be given great weight in the HMDA data for Norwest Mortgage in Milwaukee. During the past applications process.12 year, however, Norwest has expanded its presence in Milwaukee by acquiring its first bank in that city. The bank has recently announced As a result of a recent corporate reorganization, a plan to provide increased funding for inner city housing and Norwest's nonbank subsidiary, Norwest Mortgage, commercial and economic development loans. In addition, the bank Inc. ("Norwest Mortgage"), now handles most mort- will continue to provide its no-minimum balance checking accounts and review the feasibility of opening new branches in low- and gage lending for Norwest and administers CHOP. moderate-income areas. The Board expects Norwest to continue its Individuals in the Minneapolis-St. Paul area can apply record of improvement under the CRA, including full implementation for purchase money mortgages through CHOP at of its CRA program in Milwaukee. The Board will continue to consider Norwest's progress in meeting the needs of low- and modtwelve offices, six of which are offices of Norwest's erate-income communities, including Milwaukee, in future applications to expand its deposit-taking operations. 14. The 1989 HMDA data show that United Banks made 13.2 percent of its mortgage loans in low- and moderate-income neighbor- 9. Protestants also have requested that Norwest honor agreements hoods and 8.7 percent of its mortgage loans in integrated and predommade by United Banks with community groups. Protestants also inately minority census tracts. In both instances, these percentages believe that United Banks should expand its affirmative action pro- exceeded the percentages for aggregate HMDA-reporting lenders. In gram and implement a community monitoring program. addition, in low- and moderate-income areas in Denver, United Banks 10. 54 Federal Register 13,742 (1989). made twice as many loans in predominately minority census tracts 11 .Id. (per owner-occupied unit) as in predominately nonminority census 12. Id. at 13,745. tracts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

346 Federal Reserve Bulletin • May 1991 west has indicated that it will apply its CRA program factors it must consider under section 4(c)(8) of the to the subsidiary banks of United Banks, including its BHC Act is favorable and consistent with approval. Community Marketing Initiative, which requires each Based on the foregoing and other facts of record, the subsidiary bank to develop an outreach program to Board has determined that the applications should be, provide for an ongoing assessment of community and hereby are, approved. The bank acquisitions shall financial service needs. not be consummated before the thirtieth calendar day For the foregoing reasons, and based upon the following the effective date of this Order, or later than overall CRA record of Norwest and its subsidiary three months after the effective date of this Order, banks and other facts of record, the Board concludes unless such period is extended for good cause by the that convenience and needs considerations, including Board or by the Federal Reserve Bank of Minneapolis, the record of performance under the CRA of Norwest acting pursuant to delegated authority. The determiand United Banks, are consistent with approval of this nations as to Norwest's nonbanking activities are application.15 The Board also determines that the subject to all of the conditions contained in the financial and managerial resources and future pros- Board's Regulation Y, including those in sections pects of Norwest, United Banks, and their subsidiaries 225.4(d) and 225.23(b)(3) (12 C.F.R. 225.4(d) and are consistent with approval of this application. 225.23(b)(3)), and to the Board's authority to require Norwest also has applied, pursuant to section 4(c)(8) such modification or termination of the activities of a of the BHC Act, to acquire lending, data processing holding company or any of its subsidiaries as the and insurance subsidiaries of United Banks. The Board finds necessary to assure compliance with, or Board has determined by regulation that each of these prevent evasions of, the provisions and purposes of activities is permissible for bank holding companies the BHC Act and the Board's regulations and orders under section 4(c)(8) of the BHC Act,16 and Norwest issued thereunder. proposes to conduct these activities in accordance By order of the Board of Governors, effective with the Board's regulations. Norwest operates non- March 4, 1991. banking subsidiaries engaged in lending, data pro- Voting for this action: Chairman Greenspan and Governors cessing and insurance activities that compete with Seger, La Ware, and Mullins. Absent and not voting: Gover- United Banks in these activities. Each of these nors Angell and Kelley. subsidiaries has a small market share, and there are numerous competitors for these services. As a JENNIFER J. JOHNSON result, consummation of this proposal would have a Associate Secretary of the Board de minimis effect on existing competition for these services, and the Board concludes that the proposal Appendix would not result in a significant adverse effect on competition in any relevant market. Furthermore, there Norwest will acquire the following banks: is no evidence in the record to indicate that approval of this proposal would result in any significantly adverse (1) United Bank of Boulder, N.A., Boulder, Coloeffects, such as undue concentration of resources, rado. decreased or unfair competition, conflicts of interests, (2) United Bank of Colorado Springs, N.A., Coloor unsound banking practices. Accordingly, the Board rado Springs, Colorado. has determined that the balance of public interest (3) United Bank of Denver, N.A., Denver, Colorado. (4) United Bank of Fort Collins, N.A., Fort Collins, Colorado. 15. Several Protestants also have requested that the Board hold a public hearing or meeting to assess further facts surrounding the CRA (5) United Bank of Greeley, N.A., Greeley, Coloperformance of Norwest and United Banks. Under the Board's rules, rado. the Board may, in its discretion, hold a public hearing or meeting on (6) United Bank of Montrose, N.A., Montrose, an application to clarify factual issues related to the application and to provide an opportunity for testimony, if appropriate. 12 U.S.C. Colorado. §§ 262.3(e) and 262.25(d). (7) United Bank of Steamboat Springs, N.A., The Board has carefully considered Protestants' request for a public Steamboat Springs, Colorado. meeting or hearing in this case. In the Board's view, the parties have had ample opportunity to present submissions, and have submitted (8) United Bank of Sterling, N.A., Sterling, Colosubstantial written comments that have been considered by the Board. rado. In light of these facts, the Board has determined that a public meeting or hearing is not necessary to clarify the factual record in these (9) United Bank of Grand Junction - Downtown, applications, or is otherwise warranted in this case. Accordingly, N.A., Grand Junction, Colorado. Protestants' request for a public meeting or hearing on this application (10) United Bank of Brighton, N.A., Brighton, Colis hereby denied. 16. 12 C.F.R. 225.25(b)(1), (7), (8X0, and (8)(vii). orado. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 347 (11) United Bank of Aurora, N.A., Aurora, Colo- (39) United Bank of Aurora - South, N.A., Aurora, rado. Colorado. (12) United Bank of Ignacio, N.A., Ignacio, Colo- (40) United Bank of Westminster, N.A., Westminrado. ster, Colorado. (13) United Bank of Pueblo, N.A., Pueblo, Colo- Norwest will acquire the following nonbanking subsidrado. iaries: (14) United Bank of Littleton, N.A., Littleton, Colorado. (1) United Banks Financial Services Corporation, (15) United Bank of Broomfield, N.A., Broomfield, and Spectrum Properties, Inc., both of Denver, Colo- Colorado. rado, and thereby engage in commercial finance activ- (16) United Bank of Sunset Park, N.A., Pueblo, ities; Colorado. (2) United Banks Service Company, Englewood, (17) United Bank of Lakewood, N.A., Lakewood, Colorado, and thereby engage in data processing ac- Colorado. tivities; (18) United Bank of Northglenn, N.A., Northglenn, (3) Fidelity National Life Insurance Company and Colorado. IntraWest Insurance Company, both of Denver, Col- (19) United Bank of Lasalle, N.A., Lasalle, Coloorado, and thereby engage in credit insurance activirado. ties; (20) United Bank of Grand Junction, N.A., Grand (4) United Banks Insurance Services, Inc., Denver, Junction, Colorado. Colorado, and its wholly-owned subsidiary, Lincoln (21) United Bank of Delta, N.A., Delta, Colorado. Agency Inc., Phoenix, Arizona, and Tempe, Arizona, (22) United Bank of Bear Valley, N.A., Denver, and thereby engage in insurance agency activities. Colorado. (23) United Bank of Colorado Springs - East, N.A., Orders Issued Under Federal Reserve Act Colorado Springs, Colorado. (24) United Bank of Southglenn, N.A., Arapahoe County, Colorado. Fifth Third Bank (25) United Bank of Longmont, N.A., Longmont, Cincinnati, Ohio Colorado. (26) United Bank of Durango, N.A., Durango, Col- Fifth Third Bank orado. Columbus, Ohio (27) United Bank of Skyline, N.A., Denver, Colorado. (28) United Bank of Buckingham Square, N.A., Order Approving the Establishment of Branches Aurora, Colorado. (29) United Bank of Monaco, N.A., Denver, Colo- Fifth Third Bank, Cincinnati, Ohio ("Fifth Third Cinrado. cinnati"), has applied, pursuant to section 9 of the (30) United Bank of Garden of the Gods, N.A., Federal Reserve Act (12 U.S.C. § 321 et seq.) Colorado Springs, Colorado. ("FRA"), to establish three full-service branches at (31) United Bank of Arvada, N.A., Arvada, Colo- 9990 Montgomery Road and 6150 Glenway Avenue, rado. both in Cincinnati, Ohio, and at 11905 Superior Ave- (32) United Bank of Fort Collins - South, N.A., Fort nue, Cleveland, Ohio, and to establish 73 Customer Collins, Colorado. Bank Communication Terminals ("CBCTs") through- (33) United Bank of Arapahoe, N.A., Englewood, out Ohio at locations listed in the Appendix. Fifth Colorado. Third Bank, Columbus, Ohio ("Fifth Third Colum- (34) United Bank of Southwest Plaza, N.A., Jef- bus"), also has applied, pursuant to section 9 of the ferson County, Colorado. FRA, to establish a full-service branch at 250 Wilson (35) United Bank of Cherry Creek, N.A., Denver, Road, Columbus, Ohio, and to establish 21 CBCTs Colorado. throughout Ohio at locations listed in the Appendix. (36) United Bank of Highlands Ranch, N.A., High- Notice of these applications, affording interested lands Ranch, Colorado. persons an opportunity to submit comments, has been (37) United Bank of Academy Place, N.A., Colo- duly published. The time for filing comments has rado Springs, Colorado. expired, and the Board has considered the applications (38) United Bank of Aurora - City Center, N.A., and all comments received in light of the factors Aurora, Colorado. contained in section 9 of the FRA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

348 Federal Reserve Bulletin • May 1991 Fifth Third Cincinnati and Fifth Third Columbus are banks' responses to those comments, in light of the both subsidiary banks of Fifth Third Bancorp, Cincin- CRA, the Board's regulations, and the Statement of nati, Ohio ("Bancorp"), which operates subsidiary the Federal Financial Supervisory Agencies Regarding banks in Ohio, Indiana, and Kentucky. Fifth Third the Community Reinvestment Act ("Agency CRA Cincinnati, Bancorp's lead bank, has its main office in Statement").3 The Agency CRA Statement provides Cincinnati, Ohio, and operates branches in Cincinnati, guidance regarding the types of policies and proce- Hamilton and Middletown Counties, Dayton, and dures that the supervisory agencies believe financial Cleveland, all in Ohio. Fifth Third Columbus has its institutions should have in place in order to fulfill their main office and branches in Columbus, Ohio, and also responsibilities under the CRA on an ongoing basis two branches in Fayette County, Ohio. and the procedures that the supervisory agencies will In reviewing an application for a deposit facility, use during the application process to review an instiincluding the establishment of a domestic branch or tution's CRA compliance and performance. The other facility with the ability to accept deposits, the Agency CRA Statement also suggests that decisions Board is required, under the Community Reinvest- by agencies to allow financial institutions to expand ment Act (12 U.S.C. § 2901 et seq.) ("CRA"), to will be made pursuant to an analysis of the institution's consider the institution's record of serving the credit overall CRA performance and will be based on the needs of the community, including low- and moderate- actual record of performance of the institution.4 income neighborhoods. The CRA requires the federal Initially, the Board notes that Fifth Third Cincinnati financial supervisory agencies to encourage financial and Fifth Third Columbus have both received a satisinstitutions to help meet the credit needs of the local factory rating from their primary regulator in the most communities in which they operate consistent with the recent examination of their CRA performance.5 The safe and sound operation of such institutions. To Agency CRA Statement provides that a CRA examiaccomplish this end, the CRA requires the appropriate nation is an important and often controlling factor federal supervisory authority to "assess an institu- particularly where, as in this case, the specific issues tion's record of meeting the credit needs of its entire raised by the protests were incorporated in the reviews community, including low- and moderate-income of the banks.6 Accordingly, the Board has considered neighborhoods, consistent with the safe and sound the allegations of Protestants discussed below in light operation of the institution."1 of these satisfactory ratings. In this regard, the Board has considered comments filed by the Cincinnati Branch of the National Associ- Components of CRA Programs ation for the Advancement of Colored People, the Ohio Community Reinvestment Alliance, and the Co- Protestants allege deficiencies in both banks' programs alition of Neighborhoods, all in Cincinnati, Ohio (col- for ascertaining the credit needs of their communities, lectively, "Protestants").2 Protestants generally allege marketing of products, and managerial oversight.7 that the performance of Fifth Third Cincinnati and Regarding Fifth Third Cincinnati, Protestants allege Fifth Third Columbus under the CRA: that the bank lacks interest in meeting with low- and (i) does not include sufficient components of effec- moderate-income communities, directs its marketing tive CRA programs, including ascertainment of efforts toward wealthy, non-minority communities, the credit needs of the communities, marketing of products, and managerial oversight; (ii) reflects minimal participation in CRA-related 3. 54 Federal Register 13,742 (1989). programs; 4. Id. 5. The Federal Reserve Bank of Cleveland conducted CRA compli- (iii) results in insufficient lending in low-income ance examinations for Fifth Third Cincinnati and Fifth Third Columand minority communities; and bus as of October 15, 1990. (iv) does not contain adequate policies governing 6. 54 Federal Register at 13,745. 7. Protestants also allege that the CRA public comment files in both branch locations and closings. banks were inadequately maintained. Although these files generally complied with the Board's regulations, the examiners found certain The Board has carefully reviewed the CRA perfordeficiencies in the descriptions of community delineations and listings mance record of Fifth Third Cincinnati and Fifth Third of the types of credit products available. The banks have committed to Columbus, as well as Protestants' comments and the correct these deficiencies, and the Board expects these deficiencies to be resolved promptly. Protestants also charged that both banks have not employed minorities in decision-making positions. While the Board fully supports affirmative programs designed to promote equal 1. 12 U.S.C. § 2901. opportunity in every aspect of a bank's personnel policies and 2. The Board also has considered additional comments filed by practices in the employment, development, advancement, and treatseveral Protestants after the close of the comment period. Under the ment of employees and applicants for employment, the Board believes Board's rules, the Board may in its discretion take into consideration that the alleged deficiencies in the banks' general personnel practices the substance of such comments. 12 C.F.R. 262.3(e). are beyond the scope of factors assessed under the CRA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 349 and has failed to act on suggestions by the City of as well as in minority publications.12 Although the Cincinnati in a report regarding the commercial credit record reveals that both banks are making efforts to needs of the city's minority businesses.8 In addition, market their products in low- and moderate-income Protestants allege that Fifth Third Columbus's market- communities, some weaknesses exist in the effectiveing is ineffective for low-income communities, has ness of the banks' advertising efforts in these commufailed to use minority media advertising, and is pre- nities. Both banks have committed to review their mised on a survey designed for Cincinnati instead of marketing strategies and to increase their efforts in Columbus. reaching these markets. Fifth Third Cincinnati and Fifth Third Columbus have adopted many of the elements of an effective Participation in CRA-Related Programs CRA program as outlined in the Agency CRA Statement. Both banks have a CRA officer responsible for Protestants have criticized both banks for insufficient coordinating CRA activities throughout the banks. participation in CRA-related programs.13 Specifically, Frequent calls in the communities are made by the Protestants note that Fifth Third Cincinnati does not CRA officer and banking center managers.9 Ascertain- participate in Ohio's State Bond Money Program ment efforts and CRA activities are reviewed on a which is designed to assist low- and moderate-income regular basis by oversight committees made up of home buyers purchasing their first home.14 Fifth Third senior management, banking center managers, and Columbus and Fifth Third Cincinnati are also critirepresentatives from the lending, marketing, and com- cized for their minimal participation in governmentmunity affairs departments.10 CRA program develop- assisted programs to aid the poor.15 ments are in turn periodically reported to both banks' Fifth Third Cincinnati participates in various federal boards of directors which review the overall CRA government loan programs, including SBA, FHA, VA, program in their respective banks.11 In the case of and guaranteed-student loan programs.16 The bank Fifth Third Columbus, a recent survey of credit needs also participates in several State of Ohio programs for in its market was completed in conjunction with the home purchase or home improvement. Fifth Third Ohio State Legal Services Association and a local Cincinnati participates in the Withrow Linked Deposit minority businessman who is also a community orga- Loan Program to provide borrowers with below-marnizer. ket interest rates for home purchase loans and the Fifth Third Cincinnati and Fifth Third Columbus Ohio Energy Action Loan Program, which targets market their credit products by means of traditional energy saving home improvements. The bank also media such as television, radio, and local newspapers 12. For example, Fifth Third Columbus has advertised in minority publications such as Call and Post, The Blue Chip Profile, and The Main Street Business Journal. 13. Although Protestants have alleged that Fifth Third Cincinnati 8. The report by the City of Cincinnati does not contain specific has attempted to tie improving its CRA performance to obtaining recommendations nor have Protestants identified recommendations partial management of the city's Retirement System Pension Fund, in that Fifth Third Cincinnati has failed to adopt. Although not a the Board's view, the facts in the record do not support this allegation. recommendation in the report, Fifth Third Cincinnati has formed a 14. Protestants also contend that both banks have historically made Minority Business Development Committee, which meets bi-monthly an inadequate amount of charitable contributions. Each bank has a to discuss minority business development concerns and review all foundation officer responsible for the administration of foundation declined minority business applications for ways to help with future funding and philanthropic projects. For example, Fifth Third Cincincredit requests. nati provides assistance to the United Way and other community- 9. The policies of both banks require bank center managers to make oriented programs such as Cincinnati Youth Collaborative (a program 26 calls per month on small- and medium-size businesses within the to reduce the drop-out rate by focusing on jobs and education), service area. In addition, real estate loan originators are required to INROADS (placement of minority youths in businesses), and Partners target calling efforts on minority realtors to increase the banks' in Education (a mentor program for bank employees and junior high penetration in minority communities as well as low- and moderate- students). Since the previous examination, Fifth Third Cincinnati has income areas. awarded $3.6 million in grants and $7.5 million in contributions to 10. Fifth Third Columbus has also formed specific groups such as nonprofit organizations, all of which benefit low- and moderatethe community development lending group and the small business income communities. lending group that meet regularly to discuss ways to increase the 15. Protestants allege that Fifth Third Columbus does not cash bank's lending to low- and moderate-income areas and small busi- government checks for non-depositors. However, the bank does cash nesses. State Warrant checks and offers several free or low-cost checking 11. The examination report of Fifth Third Cincinnati notes weak- accounts for low-income individuals and senior citizens. Fifth Third nesses in loan application and review procedures employed by senior Cincinnati also offers a Senior Citizen Checking Account which management including the board of directors. The bank has indicated provides discounts to senior citizens for checking services. that it will implement a system to analyze the bank's Home Mortgage 16. Since becoming an FHA and VA lender in 1988, Fifth Third Disclosure Act ("HMDA") data which will be presented to the bank's Cincinnati has lent $1.1 million (1988), $5.5 million (1989), and $8.2 executive committee periodically and to the board of directors on an million (first 9 months of 1990) under these programs. In addition, annual basis. The Board expects Fifth Third Cincinnati to implement Fifth Third Cincinnati has made $14.6 million in guaranteed student appropriate formal systems of review with senior management and loans (first 9 months of 1990) and $2.3 million in SBA small business board of director oversight to correct these deficiencies. loans (first 9 months of 1990). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

350 Federal Reserve Bulletin • May 1991 participates in the Neighborhood Lending Program in demonstrate that, overall, Fifth Third Cincinnati made Dayton, which provides, in connection with the City more loans per 1,000 owner-occupied units in the lowof Dayton, discounts on mortgage loans to individuals and moderate-income tracts in Cincinnati than in the in low- and moderate-income communities. Fifth upper-income tracts.19 Fifth Third Columbus's delin- Third Cincinnati also offers the Good Neighbor Pro- eated community includes low- and moderate-income gram, which provides loan discounts for families with communities in Columbus. The Board notes that there an income of under $35,000 to purchase homes in one are some disparities in the HMDA data for Fifth Third of Cincinnati's 38 Community Development Block Columbus's lending in Columbus. The recent exami- Grant communities.17 nations of both banks, however, found no evidence of Fifth Third Columbus also participates in programs loan discrimination against individuals in minority and designed to assist the housing needs of low- and low- and moderate-income communities. moderate-income families. The bank recently an- As previously noted, Fifth Third Cincinnati and nounced the Community Home Buyers Program, a Fifth Third Columbus have committed to take steps to mortgage lending program developed in conjunction target additional marketing toward minority and lowwith General Electric to provide flexible, affordable and moderate-income communities and to improve mortgage loans to families with low- and moderate- their lending performance to these areas. These steps incomes. The bank is also participating with the Co- will include increasing the amount of funds available lumbus Housing Partnership ("CHP") to increase for marketing the banks' products in low- and moderhousing loans to low- and moderate-income communi- ate-income neighborhoods. The Board directs that ties in Columbus and contributes a loan origination fee both banks report quarterly to the Federal Reserve to the CHP for each loan the bank makes to targeted Bank of Cleveland and that the Reserve Bank carefully low- and moderate-income areas.18 Fifth Third Colum- monitor compliance with these commitments. The bus has recently been approved as a FHA and VA Reserve Bank will also report to the Board regarding lender and acts as an agent for its affiliated banks in the extent to which the banks have implemented their offering guaranteed student loans. improvements in the areas of weakness previously noted and the progress made in correcting these deficiencies. The Agency CRA Statement provides that, Lending in Low- and Moderate-Income Communities while commitments for future action are not viewed as part of the CRA record of performance of the financial Protestants allege that Fifth Third Cincinnati and Fifth institution, commitments for such improvement can be Third Columbus have invested minimal amounts in used to address specific problems in an otherwise Ohio's minority communities. In the case of Fifth satisfactory record. In this case, in light of the banks' Third Cincinnati, the Protestants suggest that the overall satisfactory CRA performance, the Board bebank's lending patterns indicate discriminatory lendlieves it appropriate to consider the steps that the ing practices. According to Protestants, Fifth Third banks have committed to take to address weaknesses Columbus's lending patterns suggest disinvestment in identified in the record. minority and low-income communities. Fifth Third Cincinnati's delineated community includes minority and low- and moderate-income com- Branch Locations and Closings munities in Cincinnati, where its main office is located, as well as Hamilton and Middletown Counties, Day- Protestants question the policies governing branch ton, and Cleveland. Data available under HMD A show locations and closings for both banks. According to that the overall trend in the number of mortgage loans Protestants, Fifth Third Cincinnati is closing branches by Fifth Third Cincinnati in all segments of low- and in low- and moderate- income areas while opening moderate-income tracts in Cincinnati has been in- branches in upper-income areas. Fifth Third Columcreasing over the last few years, while loans to upper- bus's branches are alleged to be in locations that are income areas have been decreasing. These data also inconvenient to low-income and minority residents. In the year and one-half period between its last two CRA examinations, Fifth Third Cincinnati has opened 17. Although few loans have been originated in this relatively new program, Fifth Third Cincinnati has committed $13.2 million over the next two years. It has also indicated that it will be extending its 19. Fifth Third Cincinnati's Cleveland branch has only been in participation in the Good Neighbor Program to its Dayton branch, at operation for one year and HMDA data for 1990 are not yet available. which time it intends to phase out its participation in the Neighbor- The Board also notes that the HMDA data for Fifth Third Cincinnati hood Lending Program. show some weaknesses in the bank's pattern of lending in Dayton and 18. In addition, Fifth Third Columbus works with CHP to provide in Hamilton and Middletown Counties. The Board expects Fifth Third funding for the purchase and rehabilitation of housing in low- and Cincinnati to address these disparities and the bank's progress will be moderate-income communities. considered in reviews of future applications. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 351 ten branches and closed three. Four of the newly By order of the Board of Governors, effective opened branches were located in high-income areas March 22, 1991. while five were located in middle-income areas and one was located in a low-income area. All of the three Voting for this action: Chairman Greenspan and Governors closed branches were in middle- and high-income Angell, LaWare, and Mullins. Absent and not voting: Governor Kelley. areas. The Superior Avenue full-service branch in Cleveland that Fifth Third Cincinnati has requested to JENNIFER J. JOHNSON open in this application will be located in a low- and Associate Secretary of the Board moderate-income and predominately minority area. Fifth Third Columbus has not closed any branches. Fifth Third Columbus has four of its seventeen Appendix branches located in low-income areas and five located in middle-income areas. Examiners determined that Fifth Third Cincinnati will establish the following Fifth Third Columbus's branches were at locations CBCTs: accessible to all segments of its service community. Both banks have a closure, consolidation and re- (1) 1294 North Fairfield Road, Beavercreek, Ohio; duction-in-service policy that addresses the need to (2) 1024 South Smithville Road, Dayton, Ohio; identify and serve the needs of the banks' communi- (3) 875 Central Avenue, Springboro, Ohio; ties. These policies outline the factors to be considered (4) 7747 Old Troy Pike, Huber Heights, Ohio; when opening and closing banking centers. In addi- (5) 425 Dayton Avenue, Xenia, Ohio; tion, these policies require advance notice to the (6) 3243 West Seibenthaler Avenue, Dayton, Ohio; community explaining the rationale for closing a bank- (7) 855 Union Road, Englewood, Ohio; ing center and providing alternatives for continued (8) 2100 Beechmont Avenue, Mt. Washington, service to the affected community. Ohio; For the reasons discussed above, the Board believes (9) 1783 Ohio Pike, S.R. 125, Amelia, Ohio; that, on balance, and subject to the commitments to (10) 5740 Harrison Pike, Dent, Ohio; address the deficiencies noted in both banks' perfor- (11) 420 Wells Mill Road, Oxford, Ohio; mance under the CRA, the CRA records of Fifth Third (12) 8241 Vine Street, Cincinnati, Ohio; Cincinnati and Fifth Third Columbus are consistent (13) 7545 Beechmont Avenue, Cincinnati, Ohio; with approval of these applications.20 The Board ex- (14) 1555 Wayne Avenue, Dayton, Ohio; pects both banks to continue their record of improve- (15) 1220 East Central Avenue, Miamisburg S/C, ment under the CRA and to report on their progress in Ohio; addressing the areas of weakness in their performance (16) 700 Spinning Road, Spinning Plaza, Dayton, as previously discussed. Ohio; The Board also concludes that the financial condi- (17) 726 East Main Street, Lebanon, Ohio; tions of both banks, the general character of their (18) 2900 West Street, Route 22 & 3, Maineville, managements, and the proposed exercise of corporate Ohio; powers are consistent with approval and the purposes (19) 954 East McMillan, Wallnut Hills, Ohio; of section 9 of the FRA. (20) 960 Enright Avenue, Price Hill, Ohio; Based on all the foregoing and other facts of record, (21) 8800 Beechmont Avenue, Cherry Grove, Ohio; including the commitments to improve both banks' (22) 1244 Rombach Avenue, Wilmington, Ohio; CRA performance, the Board has determined that the (23) 1864 Seymour Avenue, Hillcrest Square, Cinapplications should be, and hereby are, approved. cinnati, Ohio; (24) 1606 North Bend Road, College Hill, Ohio; (25) University of Dayton, 300 College Park, Day- 20. Protestants have requested that the Board hold a public hearing ton, Ohio; or meeting to assess further facts surrounding the banks' CRA performance. Generally under the Board's rules, the Board may, in its (26) Salem Mall, 5200 Salem Avenue, Trotwood, discretion, hold a public hearing or meeting on an application to clarify Ohio; factual issues related to the application and to provide an opportunity for testimony, if appropriate. 12 U.S.C. §§ 262.3(e) and 262.25(d). (27) Wright State University, 3640 Colonel Glenn The Board has carefully considered these requests. In the Board's Highway, Fairborn, Ohio; view, the parties have had ample opportunity to present submissions, (28) Kenwood Towne Centre # 1, 7875 Montgomery and Protestants have submitted substantial written comments that have been considered by the Board. In light of these facts, the Board Road, Cincinnati, Ohio; has determined that a public meeting or hearing is not necessary to (29) Kenwood Towne Centre #2, 7875 Montgomery clarify the factual record in these applications, or otherwise warranted Road, Cincinnati, Ohio; in this case. Accordingly, the requests for a public meeting or hearing on these applications are hereby denied. (30) West & Wooster Pike, Mariemont, Ohio; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

352 Federal Reserve Bulletin • May 1991 (31) 516 East Cherry Street, Blanchester, Ohio; (63) 10950 Lorain Avenue, Cleveland, Ohio; (32) 11973 Lebanon Pike, Sharonville, Ohio; (64) 18501 Neff Road, Cleveland, Ohio; (33) 6950 Miami Avenue, Madeira, Ohio; (65) 8009 Day Drive, Parma, Ohio; (34) 1 West Corry Street, University Plaza, (66) 4934 Turney Road, Garfield Heights, Ohio; Cincinnati, Ohio; (67) 14225 Pearl Road, Strongville, Ohio; (35) 800 Main Street, Clermont S/C, Milford, Ohio; (68) 23949 Chagrin Boulevard, Beachwood, Ohio; (36) 6150 Glenway Avenue, Western Hills Plaza, (69) 14100 Detroit Avenue, Lake wood, Ohio; Cincinnati, Ohio; (70) 6711 Broadway Avenue, Cleveland, Ohio; (37) 6020 Chambersburgh Road, Huber Heights, Ohio; (71) Pavillion Mall, Beachwood, Ohio; (38) 3484 Towne Boulevard, Franklin, Ohio; (72) Harvard & Lee, Cleveland, Ohio; and (39) 5021 Vine Street, St. Bernard, Ohio; (73) 230 Howe Avenue, Cuyahoga Falls, Ohio. (40) 575 West Main Street, Batavia, Ohio; (41) 1420 Vine Street, Cincinnati, Ohio; Fifth Third Columbus will establish the following (42) 2435 Harrison Avenue, Westwood, Ohio; CBCTs: (43) 4840 Glenway Avenue, Cincinnati, Ohio; (44) 250 South Miami Avenue, Cleves, Ohio; (1) 6962 East Main Street, Reynoldsburg, Ohio; (45) 430 Oxford State Road, Middletown, Ohio; (2) 5991 Sunbury Road, Westerville, Ohio; (46) 3829 Montgomery Road, Norwood Plaza, Ohio; (3) 2913 Olentangy River Road, Columbus, Ohio; (47) 2830 Colerain Avenue, Camp Washington, Ohio; (4) 60 Worthington Square S/C, Worthington, Ohio; (48) 8120 Hamilton Avenue, Mt. Healthy, Ohio; (5) 299 West Bridge Street, Dublin, Ohio; (49) 3760 Paxton Avenue, Hyde Park Plaza, Cincin- (6) 1350 North High Street, Columbus, Ohio; nati, Ohio; (7) 4656 Cemetary Road, Hilliard, Ohio; (50) 26350 Great Northern Mall, N. Olmsted, Ohio; (8) 3471 North High Street, Columbus, Ohio; (51) 6677 Pearl Road, Parma Heights, Ohio; (9) 1630 Morse Road, Columbus, Ohio; (52) 5400 Northfield Road, Maple Heights, Ohio; (10) 4850 East Min Street, Whitehall, Ohio; (53) 1395 Som Center Road, Mayfield Heights, (11) 560 East Livingston, Columbus, Ohio; Ohio; (12) 83 Hamilton Road North, Gahanna, Ohio; (54) 1650 Snow Road, Parma, Ohio; (13) 120 Robinwood Avenue, Whitehall, Ohio; (55) 1225 W. Pleasant Valley Road, Parma, Ohio; (14) 4485 Refugee Road, Columbus, Ohio; (56) 5132 Wilson Mills, Richmond Heights, Ohio; (15) 2433 East Dublin-Granville, Columbus, Ohio; (57) 1499 Columbia Road, Westlake, Ohio; (16) 2000 East Main Street, Columbus, Ohio; (58) 11501 Buckeye Road, Cleveland, Ohio; (17) 3559 South High Street, Columbus, Ohio; (59) 3024 Clark Avenue, Cleveland, Ohio; (18) 3353 Cleveland Avenue, Columbus, Ohio; (60) 33311 Aurora Road, Solon, Ohio; (19) 2474 Stringtown Road, Grove City, Ohio; (61) 4798 Ride Road, Brooklyn, Ohio; (20) 55 West Schrock Road, Westerville, Ohio; and (62) 7300 St. Clair Avenue, Cleveland, Ohio; (21) 159 South Sandusky Street, Delaware, Ohio. ORDERS ISSUED UNDER THE FINANCIAL INSTITUTIONS REFORM, RECOVERY, AND ENFORCEMENT ACT CTIRREA ORDERS'') Recent orders have been issued by the Staff Director of the Division of Banking Supervision and Regulation and the General Counsel of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Acquired Surviving Approval Bank Holding Company Thrift Bank(s) Date Bank of North America Bancorp, Commonwealth Federal Bank of North March 8, 1991 Inc., Savings and Loan America, Miami, Florida Association, Miami, Florida Fort Lauderdale, Florida (Boca Raton, Florida Branch) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 353 FIRREA Orders—Continued Acquired Surviving Approval Bank Holding Company Thrift Bank(s) Date Community Bancshares, Inc., Colonial Central Savings Summitville Bank and March 7, 1991 Noblesville, Indiana Bank, F.S.B., Trust Co., Mt. Clemens, Michigan Summitville, (Lapel, Indiana Branch) Indiana First Chicago Corporation, Horizon Savings Bank, The First National March 8, 1991 Chicago, Illinois F.S.B., Bank of Chicago, Wilmette, Illinois Chicago, Illinois First of America Bank Primebank, Federal First of America March 1, 1991 Corporation, Savings Bank, Bank-Holland, Kalamazoo, Michigan Grand Rapids, N.A., Michigan Holland, Michigan Flagler Bank Corporation, Central Savings and Loan Flagler National Bank, March 8, 1991 West Palm Beach, Florida Association, West Palm Beach, Stuart, Florida Florida Resource Bancshares Poughkeepsie Savings Republic National March 15, 1991 Corporation, Bank, F.S.B., Bank, Columbia, South Carolina Poughkeepsie, Columbia, South New York Carolina (3 Spartanburg, South Carolina Branches and Landrum, South Carolina Branch) SouthTrust Corporation, Commonwealth Federal SouthTrust Bank of March 8, 1991 Birmingham, Alabama Savings and Loan Pinellas County, Association, St. Petersburg, Fort Lauderdale, Florida Florida (Home Depot Branch, St. Petersburg, Florida) 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 4 Effective Applicant(s) Bank(s) ^ ate First of America Bank Corporation, First of America Information Systems, March 1, 1991 Kalamazoo, Michigan Inc., Peoria, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

354 Federal Reserve Bulletin • May 1991 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 Beaman Bancshares, Inc., Farmers State Bank, Chicago February 22, 1991 Beaman, Iowa Beaman, Iowa Citizens Bancorp, Inc., Citizens Bank, Minneapolis February 22, 1991 Morris, Minnesota Morris, Minnesota Community Bancshares, Inc., Summitville Bank and Chicago March 7, 1991 Noblesville, Indiana Trust Co., Summitville, Indiana Community Financial Holding Community National Philadelphia March 4, 1991 Company, Bank of New Jersey, Westmont, New Jersey Westmont, New Jersey Community Group, Inc., Consolidated Atlanta February 28, 1991 Chattanooga, Tennessee Bancorporation, Inc., Chattanooga, Tennessee Farmers Savings Bank Employee BJS, Inc., Chicago February 28, 1991 Stock Ownership Plan & Trust, West Union, Iowa West Union, Iowa First American Financial First American Bank of Dallas March 14, 1991 Corporation, Sulphur Springs, N.A., Sulphur Springs, Texas Sulphur Springs, Texas First Bank Corp., Sequoyah County St. Louis February 22, 1991 Fort Smith, Arkansas Bankshares, Inc., Sallisaw, Oklahoma First Berlin Bancorp., Inc., The First National Bank Chicago March 13, 1991 Berlin, Wisconsin of Berlin, Berlin, Wisconsin First National Bancorporation of The First National Bank Chicago March 11, 1991 Stoughton, of Stoughton, Stoughton, Wisconsin Stoughton, Wisconsin FNC Bancorp, Inc., First National Bank of Atlanta March 1, 1991 Douglas, Georgia Coffee County, Douglas, Georgia Founders Financial Corporation, Colonial National Bank, Atlanta March 4, 1991 Naples, Florida Fort Myers, Florida Founders Financial Corporation, Colonial National Bank, Atlanta March 4, 1991 Naples, Florida Fort Myers, Florida Greater Southwest Bancshares, Greater Southwest Dallas March 1, 1991 Inc., Employee Stock Bancshares, Inc., Ownership Plan, Irving, Texas Irving, Texas Bank of the West, Irving, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 355 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date Heartland Bancorporation, Farmers State Bank and Kansas City February 21, 1991 Aurora, Nebraska Trust Company, Aurora, Nebraska Crete State Corporation, Crete, Nebraska Husker Bank Holding Company, Republic Bank of Kansas City March 8, 1991 Inc., Nebraska, Lincoln, Nebraska Columbus, Nebraska Jefferson County Bancorp, Inc., Jefferson County Bank, Chicago March 19, 1991 Jefferson, Wisconsin Jefferson, Wisconsin KSB Financial, Inc., The Kingston State Bank, Chicago February 22, 1991 Kingston, Michigan Kingston, Michigan Midwest Banco Corporation, Enders Company, Kansas City March 13, 1991 Cozad, Nebraska Enders, Nebraska Mountain Holding Corporation, Mountain National Bank, Atlanta March 4, 1991 Tucker, Georgia Tucker, Georgia National Banc of Commerce Lavalette State Bank, Richmond March 12, 1991 Company, Lavalette, Charleston, West Virginia West Virginia People's Bank of Brevard, Inc., People's Bank of Atlanta February 27, 1991 Cocoa, Florida Brevard, Cocoa, Florida The Peoples Holding Company, Peoples Federal Savings Atlanta March 8, 1991 Fort Walton Beach, Florida Bank, Fort Walton Beach, Florida Peoples Preferred Bancshares, The Peoples Bank, Atlanta March 11, 1991 Inc., Colquitt, Georgia Colquitt, Georgia Routt County National Bank First National Bank of Kansas City March 8, 1991 Corporation, Steamboat Springs, Steamboat Springs, Colorado Steamboat Springs, Colorado SB Holdings, Inc., Southern National Bank, Atlanta March 1, 1991 Douglasville, Georgia Douglasville, Georgia Texhoma Bancshares, Inc., First National Bank of Kansas City March 8, 1991 Texhoma, Oklahoma Texhoma, Texhoma, Oklahoma Tifton Banks, Inc., Tifton Bank & Trust Atlanta March 6, 1991 Tifton, Georgia Company, Tifton, Georgia United Community Bancorp, Peoples State Bank of St. Louis March 4, 1991 Inc., Gillespie, Greenfield, Illinois Gillespie, Illinois U.S.B. Holding Company, Inc., The New Milford Bank New York March 19, 1991 Nanuet, New York and Trust Company, Inc., New Milford, Connecticut Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

356 Federal Reserve Bulletin • May 1991 Section 4 Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date ABN AMRO Holding N.V., Investment and Capital Chicago March 8, 1991 Amsterdam, The Netherlands Management Corp, Stichting Prioriteit ABN AMRO Chicago, Illinois Chemical Holding, Investment Group, Amsterdam, The Netherlands Chicago, Illinois Stichting Administratiekantoor ABN AMRO Holding, Amsterdam, The Netherlands, Albemene Bank Nederland, N.V., Amsterdam, The Netherlands, ABN AMRO North America, Inc., Chicago, Illinois La Salle National Corporation, Chicago, Illinois Community Bancshares, Inc., Community Federal Savings Chicago March 7, 1991 Noblesville, Indiana Bank, Lapel, Indiana East Ridge Bancshares, Inc., Mortgage South of Tennessee, Atlanta March 13, 1991 East Ridge, Tennessee Inc., East Ridge, Tennessee Great Lakes Financial Great Lakes Financial Chicago February 27, 1991 Resources, Inc. Employee Resources, Inc., Stock Ownership Plan, Home wood, Illinois Home wood, Illinois Allied Mortgage Corporation, Chicago, Illinois Norwest Corporation, Simons and Gregoire Agency, Minneapolis March 18, 1991 Minneapolis, Minnesota Inc., Marshall, Minnesota Resource Bancshares Interim Federal Savings Bank, Richmond March 15, 1991 Corporation, Columbia, Columbia, South Carolina South Carolina United Bancshares, Inc., Vistar Financial Services, Inc., Kansas City March 19, 1991 Lincoln, Nebraska Lincoln, Nebraska APPLICATIONS APPROVED UNDER BANK MERGER ACT Reserve Effective Applicant(s) Bank(s) Bank Date Citizens Bank & Trust Company, First Colonial Savings Bank, Richmond March 8, 1991 Blackstone, Virginia Hopewell, Virginia The Peoples Bank, Sharon Valley State Bank, Kansas City March 8, 1991 Pratt, Kansas Sharon, Kansas United Jersey Bank, United Jersey New York March 15, 1991 Hackensack, New Jersey Bank/Northwest, Randolph, New Jersey Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 357 PENDING CASES INVOLVING THE BOARD OF of Board orders assessing civil money penalties and GOVERNORS issuing orders of prohibition. Oral argument is scheduled for May 7. This list of pending cases does not include suits Rutledge v. Board of Governors, No. 90-7599 (11th against the Federal Reserve Banks in which the Board Cir., filed August 21, 1990). Appeal of district court of Governors is not named a party. grant of summary judgment for defendants in tort suit challenging Board and Reserve Bank supervisory actions. The Court of Appeals summarily af- Fields v. Board of Governors, No. 3:91CV069 (N.D. firmed the lower court on January 17, 1991. Ohio, filed February 5, 1991). Appeal of denial of Kaimowitz v. Board of Governors, No. 90-3067 (11th request for information under the Freedom of Infor- Cir., filed January 23, 1990). Petition for review of mation Act. Board order dated December 22, 1989, approving State of Illinois v. Board of Governors, No. 90-3824 application by First Union Corporation to acquire (7th Circuit, appeal filed December 19, 1990). Ap- Florida National Banks. Petitioner objects to appeal of injunction restraining the Board from providproval on Community Reinvestment Act grounds. ing state examination materials in response to a Babcock and Brown Holdings, Inc. v. Board of Congressional subpoena. On November 30, 1990, Governors, No. 89-70518 (9th Cir., filed Novemthe U.S. District Court for the Northern District of ber 22, 1989). Petition for review of Board deter- Illinois issued a preliminary injunction preventing mination that a company would control a proposed the Board and the Chicago Reserve Bank from insured bank for purposes of the Bank Holding providing documents relatingto the state examina- Company Act. Oral argument is scheduled for tion in response to the subpoena. The House Com- April 9. mittee on Banking, Finance and Urban Affairs has Consumers Union of U.S., Inc. v. Board of Goverappealed the injunction. The Board's brief is due on nors, No. 90-5186 (D.C. Cir., filed June 29, 1990). April 15, 1991. Appeal of District Court decision upholding amend- Citicorp v. Board of Governors, No. 90-4124 (2d ments to Regulation Z implementing the Home Circuit, filed October 4, 1990). Petition for review Equity Loan Consumer Protection Act. Awaiting of Board order requiring Citicorp to terminate decision. certain insurance activities conducted pursuant to Synovus Financial Corp. v. Board of Governors, No. Delaware law by an indirect nonbank subsidiary. 89-1394 (D.C. Cir., filed June 21, 1989). Petition for The Delaware Bankers Association and the State review of Board order permitting relocation of a of Delaware have intervened on behalf of petitionbank holding company's national bank subsidiary ers, and insurance trade associations have interfrom Alabama to Georgia. Oral argument was held vened on behalf of the Board in the action. Awaiton October 11, 1990. On December 10, the Justice ing decision. Department filed a brief on behalf of the Board and Stanley v. Board of Governors, No. 90-3183 (7th the Office of the Comptroller of the Currency in Circuit, filed October 3, 1990). Petition for review of response to a request from the court regarding an Board order imposing civil money penalties on five issue in the case. former bank holding company directors. Awaiting MCorp v. Board of Governors, No. 89-2816 (5th scheduling of oral argument. Cir., filed May 2, 1989). Appeal of preliminary Sibille v. Federal Reserve Bank of New York and injunction against the Board enjoining pending and Board of Governors, No. 90-CIV-5898 (S.D. New future enforcement actions against a bank holding York, filed September 12, 1990). Appeal of denial of company now in bankruptcy. On May 15, 1990, the Freedom of Information Act request. Fifth Circuit vacated the district court's order Kuhns v. Board of Governors, No. 90-1398 (D.C. Cir., enjoining the Board from proceeding with enforcefiled July 30, 1990). Petition for review of Board ment actions based on section 23A of the Federal order denying request for attorney's fees pursuant Reserve Act, but upheld the district court's order to Equal Access to Justice Act. Awaiting decision. enjoining such actions based on the Board's May v. Board of Governors, No. 90-1316 (D.C. Cir., source-of-strength doctrine. 900 F.2d 852 (5th Cir. filed July 27, 1990). Appeal of District Court order 1990). On March 4, 1991, the Supreme Court dismissing plaintiff's action under Freedom of Infor- granted the parties' cross-petitions for certiorari, mation and Privacy Acts. Board's motion for sum- Nos. 90-913, 90-914. The Board's brief is due on mary affirmance filed October 12, 1990. April 18, 1991. Burke v. Board of Governors, No. 90-9509 (10th MCorp v. Board of Governors, No. CA3-88-2693 Circuit, filed February 27, 1990). Petition for review (N.D. Tex., filed October 10, 1988). Application for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

358 Federal Reserve Bulletin • May 1991 injunction to set aside temporary cease and desist WRITTEN AGREEMENTS APPROVED BY FEDERAL orders. Stayed pending outcome of MCorp v. Board RESERVE BANKS of Governors, 900 F.2d 852 (5th Cir. 1990). White v. Board of Governors, No. CU-S-88-623-RDF The Bank of the West (D. Nev., filed July 29, 1988). Age discrimination Irving, Texas complaint. Board's motion to dismiss or for summary judgment was denied on January 3, 1991. The Federal Reserve Board announced on March 12, Awaiting trial date. 1991, the execution of a Written Agreement between the Federal Reserve Bank of Dallas and H. Gary Blankenship, the Bank of the West, Greater Southwest Bancshares, Inc., and Greater Southwest Banc- FINAL ENFORCEMENT ORDERS ISSUED BY THE shares, Inc. Employee Stock Ownership Plan, Irving, BOARD OF GOVERNORS Texas. Banca Nazionale Del Lavoro Sterling Bancorp, Inc. Rome, Italy St. Albans, West Virginia The Federal Reserve Board announced on March 11, The Federal Reserve Board announced on March 15, 1991, the issuance of a Cease and Desist Order against 1991, the execution of a Written Agreement between Banca Nazionale Del Lavoro, Rome, Italy, and its the Federal Reserve Bank of Richmond, the Commis- Atlanta, Georgia agency and New York, New York sioner of Banking, State of West Virginia, and Sterling branch. Bancorp, Inc., St. Albans, West Virginia. BCCI Holdings (Luxembourg) S.A. United American Bank of Central Florida Luxembourg, Luxembourg Orlando, Florida The Federal Reserve Board announced on March 4, The Federal Reserve Board announced on March 5, 1991, the joint issuance, with the superintendent of 1991, the execution of a Written Agreement between Banks of the State of New York, of an Order against the Federal Reserve Bank of Atlanta, the State Comp- BCCI Holdings (Luxembourg) S.A., Luxembourg, troller and Banking Commissioner of the State of and Bank of Credit and Commerce International S.A., Florida, and the United American Bank of Central Luxembourg. Florida, Orlando, Florida. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

359 Directors of Federal Reserve Banks and Branches Regional decentralization and a combination of chosen without discrimination as to race, creed, governmental and private characteristics are im- color, sex, or national origin. portant hallmarks of the uniqueness of the Fed- Class A directors of each Reserve Bank repreeral Reserve System. Under the Federal Reserve sent the stockholding member banks of the Fed- Act, decentralization was achieved by division of eral Reserve District. Class B and Class C directhe country into twelve regions called Federal tors represent the public and are chosen with Reserve Districts and the establishment in each due, but not exclusive, consideration of the in- District of a separately incorporated Federal terests of agriculture, commerce, industry, ser- Reserve Bank, with its own board of directors. vices, labor, and consumers; they may not be The blending of governmental and private char- officers, directors, or employees of any bank. In acteristics is provided through ownership of the addition, Class C directors may not be stockholdstock of the Reserve Bank by member banks in ers of any bank. The Board of Governors desigits District who also elect the majority of the nates annually one Class C director as chairman board of directors, and by the general supervi- of the board of directors of each District Bank, sion of the Reserve Banks by the Board of and designates another Class C director as dep- Governors, an agency of the federal government. uty chairman. The Board also appoints a minority of each board Each of the twenty-five Branches of Federal of directors. Thus, there are essential elements of Reserve Banks has a board of either seven or five regional participation and counsel in the conduct directors, a majority of whom are appointed by of the System's affairs for which the Federal the parent Federal Reserve Bank; the others are Reserve relies in an important way on the con- appointed by the Board of Governors. One of the tributions of the directors of the Federal Reserve Board's appointees is designated annually as Banks and Branches. chairman of the board of that Branch in a manner The following list of directors of Federal Re- prescribed by the parent Federal Reserve Bank. serve Banks and Branches shows for each direc- The names of the chairman and deputy chairtor the class of directorship, the principal busi- man of the board of directors of each Reserve ness affiliation, and the date the current term Bank and of the chairman of each Branch are expires. Each Federal Reserve Bank has nine published monthly in the Federal Reserve Bullemembers on its board of directors: The member tin banks elect the three Class A and three Class B directors, and the Board of Governors appoints the three directors in Class C. Directors are 1. The current list appears on page A86 of this Bulletin. DISTRICT L—BOSTON Term expires Dec. 31 Class A William H. Chadwick Vice Chairman of the Board and Chief Operating Officer, Banknorth 1991 Group, Inc., Burlington, Vermont Terrence Murray Chairman of the Board, President, and Chief Executive Officer, 1992 Fleet/Norstar Financial Group, Inc., Providence, Rhode Island Norman F.C. Kent President, First National Bank of Portsmouth, Portsmouth, 1993 New Hampshire Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

360 Federal Reserve Bulletin • May 1991 DISTRICT 1—Continued Term expires Class B Dec. 31 Edward H. Ladd Chairman and Chief Executive Officer, Standish, Ayer and Wood, 1991 Inc., Boston, Massachusetts Joan T. Bok Chairman of the Board, New England Electric System, 1992 Westborough, Massachusetts Stephen R. Levy Chairman of the Board and Chief Executive Officer, Bolt Beranek 1993 and Newman, Inc., Cambridge, Massachusetts Class C Chairman of the Board and Chief Executive Officer, New England 1991 Dr. Jerome H. Grossman Medical Center, Inc., Boston, Massachusetts Maurits C. Boas Professor of International Economics, Harvard 1992 Richard N. Cooper University, Cambridge, Massachusetts Vacancy 1993 DISTRICT 2—NEW YORK Class A Chairman of the Board and Chief Executive Officer, Manufacturers 1991 John F. McGillicuddy Hanover Trust Company, New York, New York Chairman of the Board, President, and Chief Executive Officer, 1992 Victor J. Riley, Jr. KeyCorp, Albany, New York Chairman of the Board and Chief Executive Officer, Phillipsburg 1993 Barbara Harding National Bank and Trust Company, Phillipsburg, New Jersey Class B Richard L. Gelb Chairman of the Board and Chief Executive Officer, Bristol-Myers 1991 Squibb Company, New York, New York John A. Georges Chairman of the Board and Chief Executive Officer, 1992 International Paper, Purchase, New York Chairman and Chief Executive Officer, ITT Corporation, New York, 1993 Rand V. Araskog New York Class C Chairman and Chief Executive Officer, American International 1991 Maurice R. Greenberg Group, Inc., New York, New York Presiding Partner, Simpson Thacher & Bartlett, New York, 1992 Cyrus R. Vance New York President, Barnard College, New York, New York 1993 Ellen V. Futter —Buffalo Branch Appointed by the Federal Reserve Bank Richard H. Popp Operating Partner, Southview Farm, Castile, New York 1991 Robert G. Wilmers Chairman of the Board and Chief Executive Officer, Manufacturers 1991 and Traders Trust Company, Buffalo, New York Wilbur F. Beh President and Chief Executive Officer, FNB of Rochester, 1992 Rochester, New York Susan A. McLaughlin President, Eastman Savings and Loan Association, Rochester, 1993 New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 361 DISTRICT 2—Continued Term expires Buffalo Branch—Continued Dec. 31 Appointed by the Board of Governors Mary Ann Lambertsen Vice President—Human Resources and Information Systems, 1991 Fisher-Price, Division of The Quaker Oats Company, East Aurora, New York Herbert L. Washington HLW Fast Track, Inc., Rochester, New York 1992 Joseph J. Castiglia President and Chief Executive Officer, Pratt & Lambert, Inc., 1993 Buffalo, New York DISTRICT 3—PHILADELPHIA Class A President and Chief Executive Officer, The First National Bank of 1991 H. Bernard Lynch Wyoming, Wyoming, Delaware Chairman of the Board and Chief Executive Officer, 1992 Samuel A. McCullough Meridian Bancorp, Inc., Reading, Pennsylvania President and Chief Executive Officer, United Jersey Bank/South, 1993 Gary F. Simmerman N.A., Cherry Hill, New Jersey Class B Nicholas Riso Executive Vice President, AHOLD, U.S.A., Harrisburg, 1991 Pennsylvania David W. Huggins President, RMS Technologies, Inc., Marlton, New Jersey 1992 James M. Mead President, Capital Blue Cross, Harrisburg, Pennsylvania 1993 Class C Donald J. Kennedy Business Manager, International Brotherhood of Electrical Workers, 1991 Local Union No. 269, Trenton, New Jersey Peter A. Benoliel Chairman of the Board, Quaker Chemical Corporation, 1992 Conshohocken, Pennsylvania Jane G. Pepper President, The Pennsylvania Horticultural Society, 1993 Philadelphia, Pennsylvania DISTRICT 4—CLEVELAND Class A William T. McConnell President, The Park National Bank, Newark, Ohio 1991 Frank Wobst Chairman of the Board and Chief Executive Officer, 1992 Huntington Bancshares Incorporated, Columbus, Ohio Alfred C. Leist President, Chairman, and Chief Executive Officer, Apple Creek 1993 Banking Company, Apple Creek, Ohio Class B Douglas E. Olesen President and Chief Executive Officer, Battelle Memorial Institute, 1991 Columbus, Ohio Laban P. Jackson, Jr. Chairman of the Board, Clearcreek Properties, Lexington, Kentucky 1992 Verna K. Gibson Former President, The Limited Stores, Inc., Columbus, Ohio 1993 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

362 Federal Reserve Bulletin • May 1991 DISTRICT 4—Continued Term expires Dec. 31 Class C John R. Miller Former President and Chief Operating Officer, The Standard Oil 1991 Company (Ohio), Cleveland, Ohio A. William Reynolds Chairman and Chief Executive Officer, GenCorp, Fairlawn, Ohio 1992 John R. Hodges President, Ohio AFL-CIO, Columbus, Ohio 1993 —Cincinnati Branch Appointed by the Federal Reserve Bank Allen L. Davis President and Chief Executive Officer, The Provident Bank, 1991 Cincinnati, Ohio Clay Parker Davis President and Chief Executive Officer, Citizens National Bank, 1992 Somerset, Kentucky Jack W. Buchanan President, Sphar & Company, Inc., Winchester, Kentucky 1993 Harry A. Shaw III Chairman and Chief Executive Officer, Huffy Corporation, 1993 Dayton, Ohio Appointed by the Board of Governors Kate Ireland National Chairman of the Board, Frontier Nursing Service, 1991 Wendover, Kentucky Eleanor Hicks Advisor for International Liaison, Protocol, and Services and 1992 Associate Professor of Political Science, University of Cincinnati, Cincinnati, Ohio Marvin Rosenberg Partner, Towne Properties, Ltd., Cincinnati, Ohio 1993 —Pittsburgh Branch Appointed by the Federal Reserve Bank E. James Trimarchi President and Chief Executive Officer, First Commonwealth 1991 Financial Corporation, Indiana, Pennsylvania William F. Roemer Chairman and Chief Executive Officer, Integra Financial 1992 Corporation, Pittsburgh, Pennsylvania George A. Davidson, Jr. Chairman of the Board and Chief Executive Officer, 1993 Consolidated Natural Gas Company, Pittsburgh, Pennsylvania I.N. Rendall Harper, Jr. President, American Micrographics Company, Inc., Monroeville, 1993 Pennsylvania Appointed by the Board of Governors Jack B. Piatt Chairman of the Board, Millcraft Industries, Inc., Washington, 1991 Pennsylvania Robert P. Bozzone President and Chief Executive Officer, Allegheny Ludlum 1992 Corporation, Pittsburgh, Pennsylvania Sandra L. Phillips Executive Director, Pittsburgh Partnership for Neighborhood 1993 Development, Pittsburgh, Pennsylvania DISTRICT 5—RICHMOND Class A Chairman of the Board and President, Merchants & Miners National 1991 C.R. Hill, Jr. Bank, Oak Hill, West Virginia Chairman, President, and Chief Executive Officer, 1992 A. Pierce Stone Virginia Community Bank, Louisa, Virginia Chairman, President, and Chief Executive Officer, 1993 James G. Lindley South Carolina National Bank, Columbia, South Carolina Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 363 DISTRICT 5—Continued Term expires Dec. 31 Class B Edward H. Co veil President, The Covell Company, Easton, Maryland 1991 R.E. Atkinson, Jr. Chairman, Dilmar Oil Company, Inc., Florence, South Carolina 1992 Paul A. DelaCourt Chairman, The North Carolina Enterprise Corporation, 1993 Raleigh, North Carolina Class C Anne Marie Whittemore Partner, McGuire, Woods, Battle & Boothe, Richmond, Virginia 1991 Henry J. Faison President, Faison Associates, Charlotte, North Carolina 1992 Stephen Brobeck Executive Director, Consumer Federation of America, 1993 Washington, D.C. —Baltimore Branch Appointed by the Federal Reserve Bank H. Grant Hathaway Chairman of the Board, Maryland National Bank, Baltimore, 1991 Maryland Joseph W. Mosmiller Chairman of the Board, Loyola Federal Savings and Loan 1991 Association, Baltimore, Maryland Richard M. Adams Chairman and Chief Executive Officer, United Bankshares, Inc., 1992 Parkersburg, West Virginia Daniel P. Henson III Senior Development Director, Struever Bros., Eccles & Rouse, 1993 Inc., Baltimore, Maryland Appointed by the Board of Governors Thomas R. Shelton President, Case Foods, Inc., Salisbury, Maryland 1991 John R. Hardesty, Jr. President, Preston Energy, Inc., Kingwood, West Virginia 1992 William H. Wynn International President, United Food and Commercial Workers 1993 International Union, AFl^CIO & CLC, Washington, D.C. —Charlotte Branch Appointed by the Federal Reserve Bank Crandall C. Bowles President, The Springs Company, Lancaster, South Carolina 1991 L. Glenn Orr, Jr. Chairman, President, and Chief Executive Officer, Southern 1991 National Corporation, Lumberton, North Carolina David B. Jordan President, Chief Executive Officer, and Director, Omni Capital 1992 Group, Inc. and OMNIBANK, Salisbury, North Carolina Jim M. Cherry, Jr. President and Chief Executive Officer, Williamsburg First National 1993 Bank, Kingstree, South Carolina Appointed by the Board of Governors Harold D. Kingsmore President and Chief Operating Officer, Graniteville Company, 1991 Graniteville, South Carolina Anne M. Allen President, Anne Allen & Associates, Inc., Greensboro, North 1992 Carolina William E. Masters President, Perception, Inc., Easley, South Carolina 1993 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

364 Federal Reserve Bulletin • May 1991 DISTRICT 6—ATLANTA Term expires Dec. 31 Class A Virgil H. Moore, Jr. Chairman of the Board and Chief Executive Officer, First Farmers 1991 and Merchants National Bank, Columbia, Tennessee W.H. Swain Chairman of the Board, First National Bank, Oneida, Tennessee 1992 James B. Williams President and Chief Executive Officer, SunTrust Banks, Inc., 1993 Atlanta, Georgia Class B Saundra H. Gray Co-Owner, Gemini Springs Farm, DeBary, Florida 1991 J. Thomas Holton Chairman of the Board and President, Sherman International 1992 Corporation, Birmingham, Alabama Andre M. Rubenstein Chairman of the Board and Chief Executive Officer, Rubenstein 1993 Brothers, Inc., New Orleans, Louisiana Class C Chairman and Chief Executive Officer, Genuine Parts Company, 1991 Larry L. Prince Atlanta, Georgia Chairman of the Board and President, Engraph, Inc., 1992 Leo Benatar Atlanta, Georgia Senior Executive Vice President-Finance, Ryder System, Inc., 1993 Edwin A. Huston Miami, Florida —Birmingham Branch Appointed by the Federal Reserve Bank Shelton E. Allred Chairman of the Board, President, and Chief Executive Officer, 1991 Frit Industries, Inc., Ozark, Alabama William F. Childress President, First American Federal Savings and Loan Association, 1991 Huntsville, Alabama Robert M. Barrett Chairman and President, The First National Bank, Wetumpka, 1992 Alabama Julian W. Banton Chairman, President, and Chief Executive Officer, SouthTrust Bank 1993 of Alabama, N.A., Birmingham, Alabama Appointed by the Board of Governors Roy D. Terry President and Chief Executive Officer, Terry Manufacturing 1991 Company, Inc., Roanoke, Alabama Nelda P. Stephenson President, Nelda Stephenson Chevrolet, Inc., Florence, Alabama 1992 Donald E. Boomershine President, Better Business Bureau of Central Alabama, Inc., 1993 Birmingham, Alabama —Jacksonville Branch Appointed by the Federal Reserve Bank Perry M. Dawson President and Chief Executive Officer, Suncoast Schools Federal 1991 Credit Union, Tampa, Florida Samuel H. Vickers Chairman, President, and Chief Executive Officer, 1991 Design Containers, Inc., Jacksonville, Florida Merle L. Graser Chairman and Chief Executive Officer, First National Bank 1992 of Venice, Venice, Florida Hugh H. Jones, Jr. Chairman of the Board and Chief Executive Officer, Barnett Bank 1993 of Jacksonville, N.A., Jacksonville, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 365 DISTRICT 6—Continued Term expires Jacksonville Branch—Continued Dec. 31 Appointed by the Board of Governors Hugh M. Brown President and Chief Executive Officer, BAMSI, Inc., 1991 Titusville, Florida Lana Jane Lewis-Brent Vice Chairman of the Board, President, and Chief Executive Officer, 1992 Sunshine Jr. Stores, Inc., Panama City, Florida Joan Dial Ruffier General Partner, Sunshine Cafes and Vice President, 1993 Vista Landscaping, Orlando, Florida —Miami Branch Appointed by the Federal Reserve Bank Roberto G. Blanco Vice Chairman of the Board and Chief Financial Officer, Republic 1991 National Bank of Miami, Miami, Florida A. Gordon Oliver Chairman, President, and Chief Executive Officer, Citizens and 1992 Southern National Bank of Florida, Fort Lauderdale, Florida Steven C. Shimp President, O-A-K/Florida, Inc., Fort Myers, Florida 1993 Pat L. Tornillo, Jr., Executive Vice President, United Teachers of Dade, Miami, Florida 1993 Appointed by the Board of Governors Dorothy C. Weaver President, Intercap Equities, Inc., Coral Gables, Florida 1991 Jose L. Saumat President, Greater Miami Trading, Inc., Miami, Florida 1992 Michael T. Wilson President, Vinegar Bend Farms, Inc., Belle Glade, Florida 1993 —Nashville Branch Appointed by the Federal Reserve Bank William Baxter Lee III Chairman of the Board and President, Southeast Services 1991 Corporation, Knoxville, Tennessee Edwin W. Moats, Jr. Chairman of the Board and Chief Executive Officer, Metropolitan 1991 Federal Savings and Loan Association, Nashville, Tennessee James D. Harris President and Chief Executive Officer, Brentwood National Bank, 1992 Brentwood, Tennessee Williams E. Arant, Jr. President and Chief Executive Officer, First National Bank of 1993 Knoxville, Knoxville, Tennessee Appointed by the Board of Governors Shirley A. Zeitlin President, Shirley Zeitlin & Co. Realtors, Nashville, Tennessee 1991 Harold A. Black Professor and Head, Department of Finance, College of Business 1992 Administration, University of Tennessee, Knoxville, Tennessee Victoria B. Jackson President and Chief Executive Officer, Diesel Sales and Service, 1993 Inc. and Prodiesel, Inc., Nashville, Tennessee —New Orleans Branch Appointed by the Federal Reserve Bank Joel B. Bullard, Jr. President, Joe Bullard Automotive Companies, Mobile, Alabama 1991 Stanley S. Scott President, Crescent Distributing Company, Harahan, Louisiana 1991 Earl W. Lundy Chairman of the Board and Chief Executive Officer, First National 1992 Bank of Vicksburg, Vicksburg, Mississippi A. Hartie Spence President, Calcasieu Marine National Bank, Lake Charles, 1993 Louisiana Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

366 Federal Reserve Bulletin • May 1991 DISTRICT 6—Continued TERM New Orleans Branch—Continued Dec™ Appointed by the Board of Governors JoAnn Slaydon President, Slaydon's Ltd., Baton Rouge, Louisiana 1991 Vacancy 1992 Victor Bussie President, Louisiana AFI^CIO, Baton Rouge, Louisiana 1993 DISTRICT 7—CHICAGO Class A President and Chief Executive Officer, First of America 1991 John W. Gabbert Bank-LaPorte, N.A., LaPorte, Indiana Chairman of the Board and Chief Executive Officer, 1992 B.F. Backlund Bartonville Bank, Bartonville, Illinois Chairman, President, and Chief Executive Officer, The Northern 1993 David W. Fox Trust Corporation and The Northern Trust Company, Chicago, Illinois Class B Max J. Nay lor President, Naylor Farms, Inc., Jefferson, Iowa 1991 Paul J. Schierl Financial Consultant, Green Bay, Wisconsin 1992 A. Charlene Sullivan Associate Professor of Management, Krannert Graduate School of 1993 Management, Purdue University, West Lafayette, Indiana Class C Chairman of the Board and Chief Executive Officer, 1991 Charles S. McNeer Wisconsin Energy Corporation, Milwaukee, Wisconsin Chairman of the Board, President, and Chief Executive Officer, 1992 Richard G. Cline NICOR, Inc., Naperville, Illinois President, Chicago Federation of Labor and Industrial Union 1993 Robert M. Healey Council, AFL-CIO, Chicago, Illinois —Detroit Branch Appointed by the Federal Reserve Bank Robert J. Mylod Chairman of the Board, President, and Chief Executive Officer, 1991 Michigan National Corporation, Farmington Hills, Michigan Norman F. Rodgers President and Chief Executive Officer, Hillsdale County National 1992 Bank, Hillsdale, Michigan Charles E. Allen President and Chief Executive Officer, Graistone Realty Advisors, 1993 Inc., Detroit, Michigan William E. Odom Chairman, Ford Motor Credit Company, Dearborn, Michigan 1993 Appointed by the Board of Governors Phyllis E. Peters Director, Professional Standards Review, Deloitte & Touche, 1991 Detroit, Michigan J. Michael Moore Chairman of the Board and Chief Executive Officer, 1992 Invetech Company, Detroit, Michigan Beverly Beltaire President, P R Associates, Inc., Detroit, Michigan 1993 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 367 DISTRICT 8—ST. LOUIS Term expires Dec. 31 Class A Henry G. River, Jr. President and Chief Executive Officer, First National Bank in 1991 Pinckneyville, Pinckneyville, Illinois W.E. Ayres Chairman of the Board and Chief Executive Officer, Simmons First 1992 National Bank of Pine Bluff, Pine Bluff, Arkansas Ray U. Tanner Chairman of the Board and Chief Executive Officer, Jackson 1993 National Bank and Volunteer Bancshares, Inc., Jackson, Tennessee Class B Thomas F. McLarty III Chairman of the Board and Chief Executive Officer, Arkla, Inc., 1991 Little Rock, Arkansas Frank M. Mitchener, Jr. President, Mitchener Farms, Inc., Sumner, Mississippi 1992 Warren R. Lee President, W.R. Lee & Associates, Inc., Louisville, Kentucky 1993 Class C Robert H. Quenon Chairman, Peabody Holding Company, Inc., St. Louis, Missouri 1991 H. Edwin Trusheim Chairman of the Board and Chief Executive Officer, General 1992 American Life Insurance Company, St. Louis, Missouri Janet McAfee Weakley President, Janet McAfee, Inc., St. Louis, Missouri 1993 —Little Rock Branch Appointed by the Federal Reserve Bank Barnett Grace Chairman and Chief Executive Officer, First Commercial Bank, 1991 N.A., Little Rock, Arkansas Patricia M. Townsend President, Townsend Company, Stuttgart, Arkansas 1992 James V. Kelley III Chairman, President, and Chief Executive Officer, First United 1993 Bancshares, Inc., El Dorado, Arkansas Mahlon A. Martin President, Winthrop Rockefeller Foundation, Little Rock, Arkansas 1993 Appointed by the Board of Governors James R. Rodgers Airport Manager, Little Rock Regional Airport, 1991 Little Rock, Arkansas L. Dickson Flake President, Barnes, Quinn, Flake & Anderson, Inc., 1992 Little Rock, Arkansas William E. Love President, Sound-Craft Systems, Inc., Morrilton, Arkansas 1993 -Louisville Branch Appointed by the Federal Reserve Bank Douglas M. Lester Chairman of the Board, President, and Chief Executive Officer, 1991 Trans Financial Bancorp, Inc., Bowling Green, Kentucky Morton Boyd Chairman and Chief Executive Officer, First Kentucky National 1992 Corporation, Louisville, Kentucky Laura M. Douglas Legal Director, Metropolitan Sewer District, Louisville, Kentucky 1993 Vacancy 1993 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

368 Federal Reserve Bulletin • May 1991 DISTRICT 8—Continued Term expires Louisville Branch—Continued Dec. 31 Appointed by the Board of Governors Lois H. Gray Chairman of the Board, James N. Gray Construction 1991 Company, Inc., Glasgow, Kentucky Daniel L. Ash President and Plant Manager (Retired), Rohm and Haas Kentucky 1992 Incorporated, Louisville, Kentucky John A. Williams Chairman and Chief Executive Officer, Computer Services, Inc., 1993 Paducah, Kentucky —Memphis Branch Appointed by the Federal Reserve Bank James L. Magee Chairman and Chief Executive Officer, Farmers Bank & Trust 1991 Company, Blytheville, Arkansas Michael J. Hennessey President, Munro & Company, Inc., Wynne, Arkansas 1992 Thomas M. Garrott President and Chief Operating Officer, National Bank of Commerce 1993 and National Commerce Bancorporation, Memphis, Tennessee Larry A. Watson Chairman of the Board and President, Liberty Federal Savings 1993 Bank, Paris, Tennessee Appointed by the Board of Governors Katherine Hinds Smythe President, Memorial Park, Inc., Memphis, Tennessee 1991 Sandra B. Sanderson- President and Chief Executive Officer, Sanderson Plumbing 1992 Chesnut Products, Inc., Columbus, Mississippi Seymour B. Johnson Owner, Kay Planting Company, Indianola, Mississippi 1993 DISTRICT 9—MINNEAPOLIS Class A Chairman of the Board and Chief Executive Officer, National City 1991 James H. Hearon III Bank, Minneapolis, Minnesota Chairman of the Board, Farmers and Merchants Bank and Trust 1992 Rodney W. Fouberg Co., Aberdeen, South Dakota President and Chief Executive Officer, First State Bank of Warner, 1993 Charles L. Seaman Warner, South Dakota Class B Duane E. Dingmann President, Trubilt Auto Body, Inc., Eau Claire, Wisconsin 1991 Bruce C. Adams Partner, Triple Adams Farms, Minot, North Dakota 1992 Earl R. St. John, Jr. President, St. John Forest Products, Inc., Spalding, Michigan 1993 Class C Jean D. Kinsey Professor, Consumption and Consumer Economics, Department of 1991 Agricultural and Applied Economics, University of Minnesota, St. Paul, Minnesota Gerald A. Rauenhorst Chairman of the Board and Chief Executive Officer, 1992 Opus Corporation, Minneapolis, Minnesota Delbert W. Johnson President and Chief Executive Officer, Pioneer Metal Finishing, 1993 Minneapolis, Minnesota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 369 DISTRICT 9—CONTINUED Term expires —Helena Branch Dec. 31 Appointed by the Federal Reserve Bank Beverly D. Harris President, Empire Federal Savings and Loan Association, 1991 Livingston, Montana Robert T. Gerhardt Chairman, President, and Chief Executive Officer, First Interstate 1992 Bank of Montana, N.A., Kalispell, Montana Nancy M. Stephenson Executive Director, Neighborhood Housing Services, Great Falls, 1992 Montana Appointed by the Board of Governors James E. Jenks Jenks Farms, Hogeland, Montana 1991 J. Frank Gardner President, Montana Resources, Inc., Butte, Montana 1992 DISTRICT 10—KANSAS CITY Class A Chairman of the Board and Chief Executive Officer, First National 1991 Robert L. Hollis Bank and Trust Co. of Okmulgee, Okmulgee, Oklahoma Chairman and Chief Executive Officer, First National Bank, 1992 Harold L. Gerhart, Jr. Newman Grove, Nebraska Co-Chairman of the Board, FirstBank Holding Company of 1993 Roger L. Reisher Colorado, Lakewood, Colorado Class B Frank J. Yaklich, Jr. President, CF & I Steel Corporation, Pueblo, Colorado 1991 Frank A. McPherson Chairman of the Board and Chief Executive Officer, Kerr-McGee 1992 Corporation, Oklahoma City, Oklahoma Don E. Adams Buffalo, Oklahoma 1993 Class C Burton A. Dole, Jr. Chairman of the Board and President, Puritan-Bennett Corporation, 1991 Overland Park, Kansas Fred W. Lyons, Jr. President, Marion Merrell Dow Inc., Kansas City, Missouri 1992 Thomas E. Rodriguez President and General Manager, Thomas E. Rodriguez & 1993 Associates, P.C., Aurora, Colorado —Denver Branch Appointed by the Federal Reserve Bank Norman R. Corzine President and Chief Executive Officer, First National Bank in 1991 Albuquerque, Albuquerque, New Mexico W. Richard Scarlett III Chairman of the Board and Chief Executive Officer, Jackson State 1991 Bank, Jackson Hole, Wyoming Henry A. True III Partner, True Companies, Casper, Wyoming 1992 Peter R. Decker President, Decker & Associates, Denver, Colorado 1993 Appointed by the Board of Governors Barbara B. Grogan President, Western Industrial Contractors, Inc., Denver, Colorado 1991 Sandra K. Woods Vice President, Corporate Real Estate, Adolph Coors Company, 1992 Golden, Colorado Gilbert Sanchez President, New Mexico Highlands University, Las Vegas, 1993 New Mexico Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

370 Federal Reserve Bulletin • May 1991 DISTRICT 10—CONTINUED TERM expires —Oklahoma City Branch Dec. 31 Appointed by the Federal Reserve Bank C. Kendric Fergeson Chairman of the Board and Chief Executive Officer, The National 1991 Bank of Commerce, Altus, Oklahoma W. Dean Hidy Chairman of the Board, Triad Bank, N.A., Tulsa, Oklahoma 1992 John Wm. Laisle President, MidFirst Bank, SSB, Oklahoma City, Oklahoma 1992 Appointed by the Board of Governors Ernest L. Holloway President, Langston University, Langston, Oklahoma 1991 William R. Allen President and Chief Executive Officer, Union Equity Cooperative 1992 Exchange, Enid, Oklahoma —Omaha Branch Appointed by the Federal Reserve Bank Sheila Griffin Associate Director for Audience and Program Development, Lied 1991 Center for Performing Arts, University of Nebraska-Lincoln, Lincoln, Nebraska John T. Selzer Chairman of the Board and Chief Executive Officer, FirsTier Bank, 1991 N.A., Scottsbluff, Nebraska John R. Cochran President and Chief Executive Officer, Norwest Bank, Nebraska, 1992 N.A., Omaha, Nebraska Appointed by the Board of Governors LeRoy W. Thom President, T-L Irrigation Company, Hastings, Nebraska 1991 Herman Cain President and Chief Executive Officer, Godfather's Pizza, Inc., 1992 Omaha, Nebraska DISTRICT 11—DALLAS Class A Charles T. Doyle Chairman of the Board and Chief Executive Officer, Gulf National 1991 Bank, Texas City, Texas Robert G. Greer Chairman of the Board, Tanglewood Bank, N.A., Houston, Texas 1992 T.C. Frost Chairman of the Board, Frost National Bank, San Antonio, Texas 1993 Class B Peyton Yates President, Yates Drilling Company, and Executive Vice President, 1991 Yates Petroleum Corporation, Artesia, New Mexico Gary E. Wood President, Texas Research League, Austin, Texas 1992 J.B. Cooper, Jr. Farmer, Roscoe, Texas 1993 Class C Chairman of the Board and Chief Executive Officer, The Tetra 1991 Hugh G. Robinson Group, Inc., Dallas, Texas Chairman of the Board and Chief Executive Officer, Linbeck 1992 Leo E. Linbeck, Jr. Construction Corporation, Houston, Texas Chairman and Chief Executive Officer, Cisneros Asset Management 1993 Henry G. Cisneros Co., San Antonio, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 371 DISTRICT 11—CONTINUED TERM expires —El Paso Branch Dec. 31 Appointed by the Federal Reserve Bank Humberto F. Sambrano President, SamCorp General Contractors, El Paso, Texas 1991 Wayne Merritt President, Claydesta National Bank, Midland, Texas 1992 Ben H. Haines, Jr. President, First National Bank of Dona Ana County, Las Cruces, 1993 New Mexico Alvin T. Johnson Senior Vice President and Founder, Management Assistance 1993 Corporation of America, El Paso, Texas Appointed by the Board of Governors Donald G. Stevens Owner, Stevens Oil Company, Roswell, New Mexico 1991 W. Thomas Beard III President, Leoncita Cattle Company, Alpine, Texas 1992 Diana S. Natalicio President, The University of Texas at El Paso, El Paso, Texas 1993 —Houston Branch Appointed by the Federal Reserve Bank Jeff Austin, Jr. President, First National Bank of Jacksonville, Jacksonville, Texas 1991 Jenard M. Gross President, Gross Builders, Inc., Houston, Texas 1992 Walter E. Johnson President and Chief Executive Officer, Southwest Bank of Texas, 1993 Houston, Texas Clive Runnells President and Director, Runnells Cattle Company, Bay City, Texas 1993 Appointed by the Board of Governors Gilbert D. Gaedcke, Jr. Chairman of the Board and Chief Executive Officer, Gaedcke 1991 Equipment Company, Houston, Texas Judy Ley Allen Partner and Administrator, Allen Investments, Houston, Texas 1992 Milton Carroll President, Instrument Products, Inc., Houston, Texas 1993 —San Antonio Branch Appointed by the Federal Reserve Bank Jane Flato Smith Investor and Rancher, San Antonio, Texas 1991 Gregory W. Crane Chairman of the Board, President, and Chief Executive Officer, 1992 Broadway National Bank, San Antonio, Texas Javier Garza Executive Vice President, The Laredo National Bank, Laredo, 1993 Texas Sam R. Sparks President, Sam R. Sparks, Inc., Santa Rosa, Texas 1993 Appointed by the Board of Governors Roger R. Hemminghaus Chairman of the Board, President, and Chief Executive Officer, 1991 Diamond Shamrock, Inc., San Antonio, Texas Lawrence E. Jenkins Vice President (Retired), Lockheed Missiles and Space Company, 1992 Austin, Texas Erich Wendl President, Maverick Markets, Inc., Corpus Christi, Texas 1993 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

372 Federal Reserve Bulletin • May 1991 DISTRICT 12—SAN FRANCISCO Term expires Dec. 31 Class A William E.B. Siart President, First Interstate Bancorp, Los Angeles, California 1991 Warren K.K. Luke President and Director, Hawaii National Bancshares, Inc., and Vice 1992 Chairman of the Board, Hawaii National Bank, Honolulu, Hawaii Richard L. Mount Chairman, President, and Chief Executive Officer, Saratoga 1993 Bancorp, Saratoga, California Class B William L. Tooley Chairman, Tooley & Company, Investment Builders, Los Angeles, 1991 California E. Kay Stepp President, Portland General Electric, Portland, Oregon 1992 John N. Nordstrom Co-Chairman of the Board, Nordstrom, Inc., Seattle, Washington 1993 Class C President and Chief Executive Officer, Chambers Communications 1991 Carolyn S. Chambers Corp., Eugene, Oregon Chairman of the Board and Chief Executive Officer, The Times 1992 Robert F. Erburu Mirror Company, Los Angeles, California Chairman of the Board, President, and Chief Executive Officer, 1993 James A. Vohs Kaiser Foundation Health Plan, Inc., and Kaiser Foundation Hospitals, Oakland, California —Los Angeles Branch Appointed by the Federal Reserve Bank David R. Lovejoy Former Vice Chairman of the Board, Security Pacific National 1991 Bank, Los Angeles, California Ignacio E. Lozano, Jr. Editor-in-Chief, La Opinion, Los Angeles, California 1991 Fred D. Jensen Chairman of the Board, President, and Chief Executive Officer, 1992 National Bank of Long Beach, Long Beach, California Anita Landecker Director of California Programs, Local Initiatives Support 1993 Corporation, Los Angeles, California Appointed by the Board of Governors Harry W. Todd Managing Partner, Carlisle Enterprises, L.P., Coronado, California 1991 Yvonne Brathwaite Burke Partner, Jones, Day, Reavis & Pogue, Los Angeles, California 1992 Donald G. Phelps Chancellor, Los Angeles Community College District, Los Angeles, 1993 California —Portland Branch Appointed by the Federal Reserve Bank Stuart H. Compton Chairman of the Board and Chief Executive Officer, Pioneer Trust 1991 Bank, N.A., Salem, Oregon Cecil W. Drinkward President and Chief Executive Officer, Hoffman Construction 1993 Company, Portland, Oregon Stephen G. Kimball President and Chief Executive Officer, Baker Boyer Bancorp, 1993 Walla Walla, Washington Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 373 DISTRICT 12—Continued Term Portland Branch—Continued Dec'n Appointed by the Board of Governors William A. Hilliard Editor, The Oregonian, Portland, Oregon 1991 Wayne E. Phillips, Jr. Vice President, Phillips Ranch, Inc., Baker, Oregon 1992 Ross R. Runkel Director, Willamette University Center for Dispute Resolution, 1993 Salem, Oregon —Salt Lake City Branch Appointed by the Federal Reserve Bank Gerald R. Christensen President and Chairman, First Federal Savings Bank, 1991 Salt Lake City, Utah Ronald S. Hanson President, Zions First National Bank, Salt Lake City, Utah 1992 Curtis H. Eaton Vice President; Manager, Community Banking Area; and Member of 1993 the Board of Directors, First Security Bank of Idaho, N.A., Twin Falls, Idaho Virginia P. Kelson Partner, Ralston & Associates, Salt Lake City, Utah 1993 Appointed by the Board of Governors D.N. Rose President and Chief Executive Officer, Mountain Fuel Supply 1991 Company, Salt Lake City, Utah Gary G. Michael Chairman and Chief Executive Officer, Albertson's, Inc., Boise, 1992 Idaho Constance G. Hogland Executive Director, Boise Neighborhood Housing Services, Inc., 1993 Boise, Idaho —Seattle Branch Appointed by the Federal Reserve Bank Robert P. Gray President, National Bank of Alaska, Anchorage, Alaska 1991 H.H. Larison President, Columbia Paint & Coatings, Spokane, Washington 1992 B.R. Beeksma Chairman of the Board, InterWest Savings Bank, Oak Harbor, 1993 Washington Gerry B. Cameron President and Chief Operating Officer, U.S. Bank of Washington, 1993 N.A., Seattle, Washington Appointed by the Board of Governors Bruce R. Kennedy Chairman, Alaska Air Group, Inc., Seattle, Washington 1991 Judith M. Runstad Managing Partner, Foster Pepper and Shefelman, Seattle, 1992 Washington George F. Russell, Jr. Chairman, President and CEO, Frank Russell Company, Tacoma, 1993 Washington 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 A21 Branches and agencies of foreign banks MONEY STOCK AND BANK CREDIT FINANCIAL MARKETS A3 Reserves, money stock, liquid assets, and debt measures A22 Commercial paper and bankers dollar A4 Reserves of depository institutions, Reserve Bank acceptances outstanding credit A22 Prime rate charged by banks on short-term A5 Reserves and borrowings—Depository business loans institutions A23 Interest rates—money and capital markets A6 Selected borrowings in immediately available A24 Stock market—Selected statistics funds — Large member banks A25 Selected financial institutions - Selected assets and liabilities POLICY INSTRUMENTS FEDERAL FINANCE A7 Federal Reserve Bank interest rates A8 Reserve requirements of depository institutions A27 Federal fiscal and financing operations A9 Federal Reserve open market transactions 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 All 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 • May 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 A3 8 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 INTEREST AND EXCHANGE RATES A51 Consumer and producer prices 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 All Assets and liabilities of commercial banks, Banks December 31,1990 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 Q1 Q2 Q3 Q4 Oct. Nov. Dec. Jan.' Feb. Reserves of depository institutions2 1 Total 2.4 -1.4 -1.4 1.7 -9.4 3.1 15.3 6.2 9.8 2 Required 2.5 -.9 -1.5 -.2 -8.3 1.1 .9 -3.9 17.5 3 Nonborrowed -3.9 -1.0 2.0 4.7 -5.2 6.8 13.5 2.1 15.4 4 Monetary base 8.2 7.4 8.6 9.0 7.6 5.4 7.7 18.4 16.4 Concepts of money, liquid assets, and debt4 5 Ml 5.2 4.2 3.7 3.4 -.9 3.1 3.1 1.9 14.1 6 M2 6.2 3.9 3.0 2.2 1.4 .2 1.7 1.0 8.6 7 M3 2.9 1.3 1.6 1.1' .8' -.1' .7' 3.3 10.6 8 L 2.8 .9 1.9' 1.7' .1' 1.1' 2.3 n.a. 9 Debt 6.3' 7.0' 7.1r 6.0' 4.7' 6.1' 5.1' 4.6 n.a. Nontransaction components 10 In M25 6.5 3.8 2.7 1.8 2.2 -.7 1.2 .8 6.8 11 In M3 only6 -9.7 -9.1 -3.9 -3.6' -1.7' -1.5' -3.7' 13.0 19.1 Time and savings deposits Commercial banks 12 Savings 9.6 4.1 5.9 5.2 6.7 3.6 7.3 12.0 11.3 n MMDAs 10.4 9.6 8.2 3.5 1.9 2.2 3.2 -2.5 17.2 14 Small-denomination time7 4 7.8 12.7 15.5 11.5 18.0 2.7' 17.5' 7.2 8.2 15 Large-denomination time • -.8 -2.9 -2.2 -8.5 -12.6 1.9 -4.3 23.9 19.8 Thrift institutions 16 Savings 1.7 2.2 -3.3 -7.3 -10.6 -5.6 -8.5 -4.5 9.1 17 MMDAs 2.7 .4 -7.7 -7.2 -11.9 -5.5 -16.7 -1.9 8.5 18 Small-denomination time -3.2 -7.4 -11.1 -7.9 -13.2 -1.5 -13.6 -10.2 -11.3 19 Large-denomination time -23.0 -28.7 -27.3 -26.3 -24.7 -29.9 -39.3 -30.7 -31.6 Money market mutual funds 20 General purpose and broker-dealer 18.1 4.7 10.0 11.2 8.8 4.6 16.4 29.7 14.1 21 Institution-only 9.1 14.8 21.6 30.4 35.1 9.0 51.8 42.0 84.9 Debt components4 22 Federal 6.8 9.7 14.4r 11.4' 5.6' 15.5' 13.1' 10.9 n.a. 23 Nonfederal 6.2r 6.2' 4.9' 4.3' 4.4' 3.2' 2.5' 2.6 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 • May 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 1991 Dec. Jan. Feb. Jan. 16 Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Feb. 27 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit 291,223 284,701 286,467 283,623 280,967 286,334 285,477 285,706 286,980 287,851 U.S. government securities1, 2 2 Bought outright-system account 239,499 234,665 235,257 235,214 232,843 234,862 233,094 236,243 235,574 235,783 3 Held under repurchase agreements ... 3,144 2,165 3,542 405 0 3,797 3,343 898 4,341 5,603 Federal agency obligations 4 Bought outright 6,342 6,342 6,342 6,342 6,342 6,342 6,342 6,342 6,342 6,342 5 Held under repurchase agreements ... 121 223 331 126 0 266 402 73 303 675 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 508 52 145 365 1,292 213 39 30 203 265 8 Seasonal credit 78 32 36 23 32 43 27 27 46 43 9 Extended credit 23 29 34 26 30 38 21 20 33 60 10 Float 1,727 1,077 874 1,600 891 768 1,163 1,170 927 161 11 Other Federal Reserve assets 40,077 39,661 39,907 39,522 39,539 40,006 41,046 40,904 39,212 38,920 12 Gold stock 11,058 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 20,368 20,429 20,471 20,424 20,434 20,444 20,454 20,464 20,474 20,484 ABSORBING RESERVE FUNDS 15 Currency in circulation 283,000 284,549 284,133 284,584 283,705 283,126 282,944 283,967 284,780 284,535 16 Treasury cash holdings 552 572 576 567 576 578 584 558 590 569 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 5,809 8,701 11,221 5,320 5,494 14,064 11,182 11,187 9,728 13,345 18 Foreign 251 252 223 242 254 241 213 215 221 235 19 Service-related balances and adjustments 2,078 3,097 2,777 4,355 2,871 2,829 2,766 2,674 2,805 2,849 20 Other 226 188 195 196 173 217 202 184 210 188 21 Other Federal Reserve liabilities and capital 9,170 8,467 9,246 8,377 8,513 8,690 9,649 9,612 8,936 9,017 22 Reserve balances with Federal Reserve Banks3 31,582 20,379 19,643 21,483 20,893 18,111 19,467 18,851 21,261 18,672 End-of-month figures Wednesday figures 1990 1991 1991 Dec. Jan. Feb. Jan. 16 Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Feb. 27 SUPPLYING RESERVE FUNDS 23 Reserve Bank credit 301,882 299,857 298,834 285,489 291,434 285,659 282,526 285,495 290,125 286,231 U.S. government securities1, 2 24 Bought outright-system account 235,090 234,306 236,636 235,871 238,717 234,234 232,099 234,881 235,204 236,235 25 Held under repurchase agreements ... 17,013 14,888 14,768 0 0 2,359 0 2,578 6,118 3,580 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 ... 1,341 2,186 1,266 0 0 866 0 196 181 575 28 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 29 Adjustment credit 112 89 402 50 5,071 51 17 51 591 29 30 Seasonal credit 55 39 47 34 40 41 25 33 45 40 31 Extended credit 23 52 57 28 32 44 11 18 63 56 32 Float 2,222 531 1,073 3,719 1,536 1,685 3,066 713 2,276 216 33 Other Federal Reserve assets 39,685 41,425 38,245 39,446 39,696 40,038 40,967 40,684 39,305 39,159 34 Gold stock 11,058 11,058 11,058 11,059 11,059 11,058 11,058 11,058 11,058 11,058 35 Special drawing rights certificate account . 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 36 Treasury currency outstanding 20,388 20,454 20,494 20,424 20,434 20,444 20,454 20,464 20,474 20,484 ABSORBING RESERVE FUNDS 37 Currency in circulation 286,949 283,004 285,151 284,091 283,890 282,780 283,419 284,411 285,234 284,691 38 Treasury cash holdings 561 590 605 576 576 590 553 589 597 605 Deposits, other than reserve balances, with Federal Reserve Banks 39 Treasury 8,960 27,810 23,898 5,099 11,079 16,884 9,856 11,012 15,782 13,300 40 Foreign 369 271 329 213 188 225 234 210 235 301 41 Service-related balances and adjustments 2,253 2,766 2,854 4,355 2,871 2,829 2,766 2,674 2,805 2,849 42 Other 242 183 171 195 161 197 202 177 188 184 43 Other Federal Reserve liabilities and capital 8,147 9,820 8,216 8,190 8,429 8,506 9,366 8,719 8,819 8,746 44 Reserve balances with Federal Reserve Banks3 35,866 16,944 19,181 24,273 25,752 15,169 17,660 19,243 18,016 17,114 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 AS 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Monthly averages9 RRReeessseeerrrvvveee ccclllaaassssssiiifffiiicccaaatttiiiooonnn 1988 1989 1990 1990 1991 Dec. Dec. Dec. Aug. Sept. Oct. Nov. Dec. Jan/ Feb. 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 37,837 35,436 30,237 32,448 33,303 32,127 33,382 30,237 22,023 19,825 22222 TTTTToooootttttaaaaalllll vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh 28,204 29,822 31,777 30,842 30,625 31,515 31,086 31,777 33,220 33,477 33333 AAAAAppppppppppllllliiiiieeeeeddddd vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh44444,,,,, 25,909 27,374 28,884 28,280 28,149 28,925 28,663 28,884 28,969 28,724 44444 SSSSSuuuuurrrrrpppppllllluuuuusssss vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh 2,295 2,448 2,893 2,562 2,476 2,590 2,423 2,893 4,250 4,753 55555 TTTTToooootttttaaaaalllll rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 63,746 62,810 59,120 60,728 61,452 61,052 62,045 59,120 50,992 48,548 66666 RRRRReeeeeqqqqquuuuuiiiiirrrrreeeeeddddd rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 62,699 61,888 57,456 59,860 60,544 60,206 61,099 57,456 48,824 46,742 77777 EEEEExxxxxccccceeeeessssssssss rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss77777 1,047 922 1,665 868 909 847 947 1,665 2,168 1,807 88888 TTTTToooootttttaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 1,716 265 326 927 624 410 230 326 534 252 99999 SSSSSeeeeeaaaaasssssooooonnnnnaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 130 84 76 430 418 335 162 76 33 37 1111100000 EEEEExxxxxttttteeeeennnnndddddeeeeeddddd cccccrrrrreeeeedddddiiiiittttt aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 1,244 20 23 127 6 18 24 23 27 34 Biweekly averages of daily figures for weeks ending 1990 1991 Oct. 31 Nov. 14 Nov. 28 Dec. 12 Dec. 26 Jan. 9 Jan. 23 Feb. 6' Feb. 20 Mar. 6 1111111111 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 31,365 33,821 32,848 34,046 28,413 26,198 21,193 18,776 20,049 20,218 1111122222 TTTTToooootttttaaaaalllll vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh 31,418 30,656 31,631 30,293 32,690 32,783 32,050r 35,759 33,341 32,005 1111133333 AAAAAppppppppppllllliiiiieeeeeddddd vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh 28,756 28,293 29,125 28,027 29,621 28,876 28,222 30,384 28,638 27,629 1111144444 SSSSSuuuuurrrrrpppppllllluuuuusssss vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh 2,662 2,363 2,506 2,266 3,069 3,908 3,828 5,375 4,703 4,376 1111155555 TTTTToooootttttaaaaalllll rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss66666 60,121 62,114 61,972 62,073 58,034 55,074 49,415 49,160 48,687 47,847 1111166666 RRRRReeeeeqqqqquuuuuiiiiirrrrreeeeeddddd rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 59,471 61,132 61,006 61,513 56,113 51,481 48,478 46,439 46,934 46,634 1111177777 EEEEExxxxxccccceeeeessssssssss rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss77777 650 982 966 561 1,922 3,592 937 2,721 1,753 1,214 1111188888 TTTTToooootttttaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 397 282 193 130 504 295 884 191 179 426 1111199999 SSSSSeeeeeaaaaasssssooooonnnnnaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 307 195 140 87 79 41 28 35 37 41 2222200000 EEEEExxxxxttttteeeeennnnndddddeeeeeddddd cccccrrrrreeeeedddddiiiiittttt aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss88888 26 25 25 25 22 22 28 30 27 50 1. These data also appear in the Board's H.3 (502) release. For address, see in- satisfy current reserve requirements. side front cover. 5. Total vault cash (line 2) less applied vault cash (line 3). 2. Excludes required clearing balances and adjustments to compensate for float 6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash and includes other off-balance sheet "as-of' adjustments. (line 3). 3. Total "lagged" vault cash held by those depository institutions currently 7. Total reserves (line 5) less required reserves (line 6). subject to reserve requirements. Dates refer to the maintenance periods in which 8. Extended credit consists of borrowing at the discount window under the the vault cash can be used to satisfy reserve requirements. Under contempora- terms and conditions established for the extended credit program to help neous reserve requirements, maintenance periods end 30 days after the lagged depository institutions deal with sustained liquidity pressures. Because there is computation periods in which the balances are held. not the same need to repay such borrowing promptly as there is with traditional 4. All vault cash held during the lagged computation period by "bound" short-term adjustment credit, the money market impact of extended credit is institutions (i.e., those whose required reserves exceed their vault cash) plus the similar to that of nonborrowed reserves. amount of vault cash applied during the maintenance period by "nonbound" 9. Data are prorated monthly averages of biweekly averages. institutions (i.e., those whose vault cash exceeds their required reserves) to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Nonfinancial Statistics • May 1991 1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Banks1 Averages of daily figures, in millions of dollars 1990, week ending Monday2 Maturity and source Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov. 26 Dec. 3 Dec. 10 Dec. 17 Dec. 24 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 75,748 82,906 83,216 87,080 82,126 83,431 88,675 83,932 2 For all other maturities 20,036 19,286 19,113 19,428 21,122 19,755 20,403 19,750 From other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies 3 For one day or under continuing contract 34,674 38,560 36,566 37,728 34,159 36,220 35,472 34,350 4 For all other maturities 20,107 20,656 21,600 21,121 23,295 20,933 21,495 20,976 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 16,691 15,620 15,314 13,700 11,585 12,015 9,971 9,542 6 For all other maturities 23,144 22,952 23,366 21,972 21,976 21,258 20,222 18,797 All other customers 7 For one day or under continuing contract 30,612 30,586 29,738 31,667 27,725 30,998 29,936 29,794 8 For all other maturities 13,302 13,818 13,370 13,665 17,193 13,248 12,912 12,064 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 47,006 49,786 45,086 50,258 46,826 47,141 46,871 44,446 10 To all other specified customers3 16,645 16,663 15,976 17,843 16,466 17,078 17,362 20,409 1. Banks with assets of $1 billion or more as of Dec. 31, 1977. Division of Applications Development and Statistical Services, Financial State- These data also appear in the Board's H.5 (507) release. For address, see inside ment Reports Section, (202) 452-3349. front cover. 3. Brokers and nonbank dealers in securities; other depository institutions; 2. Beginning with the August Bulletin data appearing are the most current foreign banks and official institutions; and United States government agencies. available. To obtain data from May 1, 1989, through April 16, 1990, contact the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A7 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Extended credit2 AAddjjuussttmmeenntt ccrreeddiitt aanndd FFFeeedddeeerrraaalll RRReeessseeerrrvvveee SSeeaassoonnaall ccrreeddiitt11 First 30 days of borrowing After 30 days of borrowing3 BBBaaannnkkk 3/2 O 5 n /9 1 Ef d fe a c t t e i ve Pr r e a v t i e o us 3/2 O 5 n /9 1 Ef d fe a c t t e i ve Pre ra v t i e o us 3/2 O 5 n /9 1 Eff d e a c t t e i ve Pr r e a v t i e o us Effective date 6V1 Boston 6 2/1/91 6 2/1/91 6 Vi 6.75 3/21/91 7.05 3/7/91 New York 2/1/91 2/1/91 3/21/91 3/7/91 Philadelphia 2/1/91 2/1/91 3/21/91 3/7/91 Cleveland 2/1/91 2/1/91 3/21/91 3/7/91 Richmond 2/1/91 2/1/91 3/21/91 3/7/91 Atlanta 2/4/91 2/4/91 3/21/91 3/7/91 Chicago 2/1/91 2/1/91 3/21/91 3/7/91 St. Louis 2/4/91 2/4/91 3/21/91 3/7/91 Minneapolis 2/1/91 2/1/91 3/21/91 3/7/91 Kansas City 2/1/91 2/1/91 3/21/91 3/7/91 Dallas 2/1/91 6V1 2/1/91 3/21/91 3/7/91 San Francisco ... 6 2/1/91 6 2/1/91 6 Vi 6.75 3/21/91 7.05 3/7/91 Range of rates for adjustment credit in recent years4 Range (or F.R. Range (or F.R. Range (or level)— Bank level)— Bank level)— Effective date All F.R. of Effective All F.R. of Effective date All F.R. Banks N.Y. Banks N.Y. Banks lVl-% m In effect Dec. 31, 1977. 6 6 1981-——MMaayy 5 13-14 14 1985—May 20 IVi IVi 1978—Jan. 9 6-6 </i m V i 8 14 14 24 May 2 1 1 0 2 1 6 i- 6V 7m V 21 -I I 6 7 7 V* N De o c v . . 7 4 6 13 1 1 - 3 2 1 4 1 1 1 3 3 2 1986—Mar. 1 7 0 6 1 V - 7 l V 1- l I 1 1 V i July 3 Apr. 21 6 10 71/4 71/4 1982---JJuullyy 70 111V 5I-1V2 i l I lV IV i i July 11 5V6 l-6 m6 A Se u p g t . . 2 2 2 1 73 8 / 4 7 8 3 V /4 i Aug. 23 7 ll-UVi II Aug. 2 2 1 2 5 Vi SVi O No ct v . . 2 16 0 1 3 8V 8- 9 8 S 8 > - V V / 9 > ! V > i5 9 9 8 8 V V V i i i 2 3 1 7 0 3 6 10 \ - m 1 1 1 1 0 0 ! ^ 1 1 1 1 1 V 0 0 0 ^ i 1987—Sept. 1 4 1 5V 6 V i- l 6 6 6 1979—July 20 10 10 Oct. 1 n ? 9W 9V - i 1 0 9 9l/i 1988—Aug. 1 9 1 6 6 -6 Vi 6 Vi Aug. 2 1 0 7 10l-1O01/V*! l l 1 O 0M 1^ > Nov. ? 7 ? 6 9-9 9 V l 9 9 1989—Feb. 24 6V4-7 1 Sept. 2 1 1 9 101 1 4 1 - 11 1 1 1 1 Dec. 1 1 5 4 8 8 V V% i i - - 9 9V i 9m m 27 7 V i 7 Vi Oct. 8 11-12 12 17 6 6 10 12 12 9 1990—Dec. 19 Vl 1984-—Apr. 9 SVl-9 6-6 6 1980—Feb. 15 12-13 13 713\ 9 9 1991—Feb. 41 6 6 19 13 13 Nov. 8Vl-9 8V V4 i May 29 12-13 13 76 8V1 8 In effect Mar. 25, 1991 6 6 30 12 12 Dec. 74 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 Domestic Nonfinancial Statistics • May 1991 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Percent of deposits Depository institution requirements after implementation of the TTyyppee ooff ddeeppoossiitt,, aanndd Monetary Control Act ddeeppoossiitt 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 1991 TTyyppee ooff ttrraannssaaccttiioonn 11998888 11998899 11999900 July Aug. Sept. Oct. Nov. Dec. Jan. U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 8,223 14,284 24,739 287 4,264 631 933 66,,665588 00 00 ? Gross sales 587 12,818 7,291 0 68 0 0 0 2,350 120 Exchange 241,876 231,211 231,386 16,159 21,912 19,041 19,271 25,981 16,939 19,747 4 Redemptions 2,200 12,730 4,400 0 0 0 0 0 3,000 1,000 Others within 1 year 5 Gross purchases 2,176 327 425r 0 0 00 00 332255 00 00 6 Gross sales 0 0 0 0 0 0 0 0 0 0 7 Maturity shift 23,854 28,848 25,638 1,321 3,235 1,010 1,934 3,531 1,991 989 8 Exchange -24,588 -25,783 -27,424 -3,577 -4,550 0 0 -4,315 0 0 9 Redemptions 0 500 0 0 0 0 0 0 0 0 1 to 5 years 10 Gross purchases 5,485 1,436 225500'' 00 00 00 00 00 00 00 11 Gross sales 800 490 200' 0 0 0 0 0 200 0 1? Maturity shift -17,720 -25,534 -21,770 -1,234 -2,188 -1,010 -1,677 -3,258 -1,991 -778 13 Exchange 22,515 23,250 25,410 3,577 4,200 0 0 3,915 0 0 5 to 10 years 14 Gross purchases 1,579 287 0 0 0 00 00 0 00 00 15 Gross sales 175 29 100' 0 0 0 0 0 100 0 16 Maturity shift -5,946 -2,231 -2,186 -87 -697 0 -256 127 0 -212 17 Exchange 1,797 1,934 789 0 0 0 0 0 0 0 Over 10 years 18 Gross purchases 1,398 284 0 00 00 00 00 00 00 00 19 Gross sales 0 0 0 0 0 0 0 0 0 0 70 Maturity shift -188 -1,086 -1,681 0 -350 0 0 -400 0 0 21 Exchange 275 600 1,226 0 350 0 0 400 0 0 All maturities V Gross purchases 18,863 16,617 25,414' 287 4,264 631 933 66,,998833 00 00 ?3 Gross sales 1,562 13,337 7,591' 0 68 0 0 0 2,650 120 24 Redemptions 2,200 13,230 4,400 0 0 0 0 0 3,000 1,000 Matched transactions Gross sales 1,168,484 1,323,480 1,369,052 95,144 113,647 120,036 127,265 116,601 112255,,884444 113300,,775511 26 Gross purchases 1,168,142 1,326,542 1,363,434 95,787 110,635 120,280 129,722 114,488 123,442 126,141 Repurchase agreements2 ?7 Gross purchases 152,613 129,518 219,632 13,106 26,700 31,9% 19,844 3366,,445577 4455,,668844 3366,,333377 28 Gross sales 151,497 132,688 202,551 11,447 23,764 34,932 19,844 34,105 31,022 38,462 29 Net change in U.S. government securities 15,872 -10,055 24,886' 2,590 4,121 -2,060 3,390 7,222 6,608 -7,855 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 0 0 0 00 0 00 00 00 00 00 31 Gross sales 0 0 0 0 0 0 0 0 0 0 32 Redemptions 587 442 183 33 37 0 34 0 1 0 Repurchase agreements2 33 Gross purchases 57,259 38,835 41,836 4,697 7,130 77,,339944 55,,991133 22,,777744 22,,009911 44,,441166 34 Gross sales 56,471 40,411 40,461 4,137 5,944 8,580 5,913 2,504 1,021 3,571 35 Net change in federal agency obligations 198 -2,018 1,192 527 1,149 -1,186 -34 270 1,070 845 36 Total net change in System Open Market Account 16,070 -12,073 26,078' 3,117 5,270 --33,,224477 3,356 77,,449922 77,,667788 --77,,001100 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 • May 1991 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month Account 1991 1990 1991 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Feb. 27 Dec. 31 Jan. 31 Feb. 28 Consolidated condition statement ASSETS 1 Gold certificate account 11,058 11,058 11,058 11,058 11,058 11,058 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 3 611 634 653 656 661 535 611 653 Loans 4 To depository institutions 136 53 102 700 125 190 180 506 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 6,342 6,342 6,342 8 Held under repurchase agreements 866 0 1% 181 572 1,341 2,186 1,266 U.S. Treasury securities Bought outright 9 Bills 111,664 109,529 112,311 112,634 113,215 112,520 111,736 113,616 10 Notes 91,407 91,407 91,407 91,307 91,757 91,407 91,407 91,757 11 Bonds 31,163 31,163 31,163 31,263 31,263 31,163 31,163 31,263 12 Total bought outright2 234,234 232,099 234,881 235,204 236,235 235,090 234,306 236,636 13 Held under repurchase agreements 2,359 0 2,578 6,118 3,580 17,013 14,888 14,768 14 Total U.S. Treasury securities 236,592 232,099 237,459 241,322 239,815 252,103 249,194 251,404 15 Total loans and securities 243,936 238,493 244,098 248,544 246,856 259,975 257,901 259,517 16 Items in process of collection 6,650 9,249 5,141 10,534 4,859 6,106 5,160 5,064 17 Bank premises 875 881 882 886 884 872 875 884 Other assets 18 Denominated in foreign currencies 32,838 33,842 33,457 33,463 33,499 32,633 33,879 32,611 19 All other' 6,308 6,301 6,234 4,824 4,867 6,376 6,704 5,211 20 Total assets 312,294 310,477 311,546 319,983 312,702 327,573 326,206 325,016 LIABILITIES 21 Federal Reserve notes 263,537 264,152 265,190 266,012 265,472 267,657 263,751 265,915 Deposits ?.? To depository institutions 17,926 21,122 21,578 20,975 20,072 38,658 19,902 2222,,110099 23 U.S. Treasury—General account 16,884 9,856 11,012 15,782 13,300 8,960 27,810 23,898 24 Foreign—Official accounts 225 234 210 235 301 369 271 329 25 Other 197 202 177 188 184 242 183 171 26 Total deposits 35,232 31,414 32,977 37,180 33,858 48,228 48,165 46,505 77 Deferred credit items 5,019 5,544 4,661 7,972 4,626 3,540 4,470 4,380 28 Other liabilities and accrued dividends 3,195 3,201 3,363 3,438 3,377 3,301 3,588 3,424 29 Total liabilities 306,982 304,311 306,190 314,601 307,333 322,727 319,974 320,224 CAPITAL ACCOUNTS 30 Capital paid in 2,450 2,451 2,471 2,475 2,479 2,423 2,450 2,475 31 Surplus 2,423 2,423 2,423 2,423 2,423 2,423 2,423 2,262 32 Other capital accounts 438 1,292 462 484 467 0 1,359 54 33 Total liabilities and capital accounts 312,294 310,477 311,546 319,983 312,702 327,573 326,206 325,016 34 MEMO: Marketable U.S. Treasury securities held in custody for foreign and international accounts 252,4% 251,193 253,250 250,470 253,419 247,521 255,092 257,639 Federal Reserve note statement 35 Federal Reserve notes outstanding issued to bank 306,722 307,418 309,167 309,963 309,954 304,829 306,681 310,176 36 LESS: Held by bank 43,185 43,266 43,977 43,951 44,482 37,172 42,930 44,261 37 Federal Reserve notes, net 263,537 264,152 265,190 266,012 265,472 267,657 263,751 265,915 Collateral held against notes net: 38 Gold certificate account 11,058 11,058 11,058 11,058 11,058 11,058 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 0 4,635 117 0 0 0 0 0 41 U.S. Treasury and agency securities 242,460 238,441 243,997 244,936 244,3% 246,581 242,675 244,839 42 Total collateral 263,537 264,152 265,190 266,012 265,472 267,657 263,751 265,915 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 1991 1990 1991 Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Dec. 31 Jan. 30 Feb. 27 5,143 136 53 102 700 190 136 125 3 2 W 16 i t d h a in ys 1 t 5 o d 9 a 0 y d s ays 5,141 2 0 13 0 0 6 4 1 0 0 3 9 1 0 1 1 70 0 0 0 18 4 0 6 13 0 0 6 12 0 4 5 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 0 1 U. W S 1 . 6 i t T d h r a i e n y a s s 1 u t 5 o r y d 9 a 0 s y e d s c ' a u y r s i ties—Total 23 5 7 1 8 4 5 2 , , , , 7 5 5 0 1 4 4 7 7 1 9 4 23 5 7 1 6 4 3 2 , , , , 5 3 1 5 9 0 6 6 2 2 9 7 23 5 7 1 2 0 3 1 , , , , 0 1 1 9 9 3 0 2 8 3 0 2 23 5 7 1 4 7 0 5 , , , , 2 4 4 7 7 5 9 5 1 9 2 3 24 5 7 1 1 1 8 4 , , , , 3 0 6 1 2 0 3 7 2 2 8 3 2 7 3 5 5 7 5 5 , , , , 4 5 5 0 2 3 1 9 8 8 6 0 2 5 7 3 1 4 3 7 2 , , , , 3 1 0 5 0 6 6 0 2 9 7 0 23 7 5 6 1 9 7 , , , , 2 1 8 3 3 9 6 1 8 5 6 9 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 5 2 1 8 4 3 , , , 5 7 3 1 3 0 0 6 6 5 2 1 4 8 3 , , , 7 5 3 3 1 0 6 0 6 5 2 1 8 4 3 , , , 9 7 3 0 3 0 1 6 6 5 2 1 8 4 3 , , , 9 7 3 0 3 0 1 6 6 5 2 1 9 4 3 , , , 5 6 2 4 7 8 9 6 4 5 2 1 8 4 3 , , , 7 7 1 4 2 3 9 1 6 5 2 1 8 4 3 , , , 5 7 3 1 3 0 0 6 6 5 2 1 4 9 3 , , , 6 5 6 7 4 3 6 9 4 1 1 1 8 6 7 Fe W 1 d 6 e i r d t a h a l i y n a s g 1 t e o 5 n d c 9 y 0 a y d o s b a ' y li s g ations—Total 6 1 , , 3 8 5 2 4 8 3 1 2 4 3 9 7 1 1 , , , 2 8 5 0 0 6 4 3 7 4 8 5 6 1 , , 3 9 5 4 6 6 5 2 3 3 5 6 1 , , 5 8 5 2 3 7 6 8 8 8 3 1 6 1 , , 5 5 5 5 2 7 6 6 3 5 3 9 6 1 , , 3 7 2 6 4 3 3 0 2 7 9 0 7 1 1 , , , 2 8 0 5 0 6 3 4 8 4 5 8 6 1 , , 3 6 3 6 4 5 0 0 2 7 8 4 2 2 0 1 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 1 , , 4 0 1 9 2 8 5 2 8 2 1 , , 5 0 1 5 2 8 0 2 7 2 1 , , 5 0 1 5 2 8 0 2 8 2 1 , , 5 0 1 9 3 8 0 7 7 2 1 , , 5 0 1 9 3 8 0 7 7 2 1 , , 5 0 1 5 2 8 5 2 8 2 1 , , 5 0 1 5 2 8 0 2 8 2 1 , , 5 0 1 4 3 8 8 7 7 1. Holdings under repurchase agreements are classified as maturing within 15 NOTE: Components may not sum 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 • May 1991 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1990 1991 1987 1988 1989 1990 IItteemm Dec. Dec. Dec. Dec. July Aug. Sept. Oct. Nov. Dec. Jan/ Feb. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves3 58.59 60.59 60.03 60.53 59.32 59.75 60.08 59.61 59.76 60.53 60.84 61.33 ?. Nonborrowed reserves4 > 57.82 58.88 59.77 60.20 58.56 58.82 59.46 59.20 59.53 60.20 60.30 61.08 3 Nonborrowed reserves plus extended credit3 58.30 60.12 59.79 60.22 58.84 58.95 59.46 59.22 59.56 60.22 60.33 61.11 4 Required reserves 57.55 59.55 59.11 58.86 58.46 58.88 59.17 58.76 58.82 58.86 58.67 59.53 5 Monetary base6 258.18 275.40 285.28 309.73 298.01 301.08 304.47 306.38 307.76 309.73 314.47 318.76 ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 Not seasonally adjusted 6 Total reserves7 60.07 62.22 61.67 62.18 59.47 59.21 59.81 59.24 60.02 62.18 62.50 60.29 7 Nonborrowed reserves 59.30 60.50 61.40 61.86 58.71 58.29 59.19 58.83 59.79 61.86 61.97 60.04 8 Nonborrowed reserves plus extended credit5 59.78 61.75 61.42 61.88 58.99 58.41 59.20 58.85 59.82 61.88 61.99 60.07 9 Required reserves8 59.03 61.17 60.75 60.52 58.61 58.34 58.90 58.40 59.08 60.52 60.33 58.48 10 Monetary base9 262.00 279.54 289.45 314.03 299.90 301.46 303.56 305.00 308.71 314.03 315.57 315.32 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS10 11 Total reserves11 62.14 63.75 62.81 59.12 60.94 60.73 61.45 61.05 62.05 59.12 50.99 48.55 12 Nonborrowed reserves 61.36 62.03 62.54 58.79 60.19 59.80 60.83 60.64 61.82 58.79 50.46 48.30 N Nonborrowed reserves plus extended credit3 61.85 63.27 62.56 58.82 60.47 59.93 60.83 60.66 61.84 58.82 50.48 48.33 14 Required reserves 61.09 62.70 61.89 57.46 60.08 59.86 60.54 60.21 61.10 57.46 48.82 46.74 15 Monetary base12 266.06 283.00 292.55 313.70 303.39 304.99 307.21 308.85 312.69 313.70 309.30 308.51 16 Excess reserves13 1.05 1.05 .92 1.66 .86 .87 .91 .85 .95 1.66 2.17 1.81 17 Borrowings from the Federal Reserve .78 1.72 .27 .33 .76 .93 .62 .41 .23 .33 .53 .25 1. Latest monthly and biweekly figures are available from the Board's H.3(502) 8. To adjust required reserves for discontinuities because of regulatory changes statistical release. Historical data and estimates of the impact on required reserves in reserve requirements, a multiplicative procedure is used to estimate what of changes in reserve requirements are available from the Monetary and Reserves required reserves would have been in past periods had current reserve require- Projections Section. Division of Monetary Affairs. Board of Governors of the ments been in effect. Break-adjusted required reserves includes required reserves Federal Reserve System, Washington, D.C. 20551. against transactions deposits and nonpersonal time and savings deposits (but not 2. Figures reflect adjustments for discontinuities or "breaks" associated with reservable nondeposit liabilities). regulatory changes in reserve requirements. 9. The break-adjusted monetary base equals (1) break-adjusted total reserves 3. Seasonally adjusted, break adjusted total reserves equal seasonally adjusted, (line 6), plus (2) the (unadjusted) currency component of the money stock, plus (3) break-adjusted required reserves (line 4) plus excess reserves (line 16). (for all quarterly reporters on the "Report of Transaction Accounts, Other 4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally Deposits and Vault Cash" and for all those weekly reporters whose vault cash adjusted, break-adjusted total reserves (line 1) less total borrowings of depository exceeds their required reserves) the break-adjusted difference between current institutions from the Federal Reserve (line 17). vault cash and the amount applied to satisfy current reserve requirements. 5. Extended credit consists of borrowing at the discount window under 10. Reflects actual reserve requirements, including those on nondeposit liabilthe terms and conditions established for the extended credit program to help ities, with no adjustments to eliminate the effects of discontinuities associated depository institutions deal with sustained liquidity pressures. Because there is with changes in reserve requirements. not the same need to repay such borrowing promptly as there is with traditional 11. Reserve balances with Federal Reserve Banks plus vault cash used to short-term adjustment credit, the money market impact of extended credit is satisfy reserve requirements. similar to that of nonborrowed reserves. 12. The monetary base, not break-adjusted and not seasonally adjusted, 6. The seasonally adjusted, break-adjusted monetary base consists of (1) consists of (1) total reserves (line 11), plus (2) required clearing balances and seasonally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjustments to compensate for float at Federal Reserve Banks, plus (3) the adjusted currency component of the money stock, plus (3) (for all quarterly currency component of the money stock, plus (4) (for all quarterly reporters on reporters on the "Report of Transaction Accounts, Other Deposits and Vault the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all Cash" and for all those weekly reporters whose vault cash exceeds their required those weekly reporters whose vault cash exceeds their required reserves) the reserves, the seasonally adjusted, break-adjusted difference between current vault difference between current vault cash and the amount applied to satisfy current cash and the amount applied to satisfy current reserve requirements. reserve requirements. After the introduction of CRR, currency and vault cash 7. Break-adjusted total reserves equal break-adjusted required reserves (line 9) figures are measured over the computation periods ending on Mondays. plus excess reserves (line 16). 13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary and Credit Aggregates A13 1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1 Billions of dollars, averages of daily figures 1990 1991 Item"1 D 19 e 8 c 7 . D 19 e 8 c 8 . D 19 e 8 c 9 . D 19 e 9 c 0 . Nov. Dec. Jan.' Feb. Seasonally adjusted 1 Ml 749.7 786.4 793.6 825.4 823.3 825.4 826.7 836.4 2 M2 2,910.1 3,069.9 3,223.1 3,330.5 3,325.8 3,330.5 3,333.4 3,357.3 3 M3 3,677.4 3,919.1 4,055.2 4,113.0r 4,110.7r 4,113.0' 4,124.4 4,160.9 4 L 4,337.0 4,676.0 4,889.9 4,964.3' 4,960.7' 4,964.3' 4,973.8 n.a. 5 Debt 8,345.1 9,107.6 9,790.4 10,450.0r 10,405.9' 10,450.0' 10,490.4 n.a. Ml components 6 Currency 196.8 212.0 222.2 246.4 245.0 246.4 251.6 255.1 7 Travelers checks4 7.0 7.5 7.4 8.4 8.4 8.4 8.4 8.2 8 Demand deposits5 286.5 286.3 278.7 276.9 277.2 276.9 272.9 276.2 9 Other checkable deposits6 259.3 280.7 285.2 293.7 292.8 293.7 293.9 296.8 Nontransactions components 10 In M2 2,160.4 2,283.5 2,429.5 2,505.1 2,502.5 2,505.1 2,506.7 2,521.0 11 In M3 only8 767.3 849.3 832.1 782.5' 784.9' 782.5' 791.0 803.6 Time and Savings accounts Commercial banks 12 Savings deposits 178.3 192.1 187.7 199.4 198.2 119999..44 220011..44 220033..33 13 Money market deposit accounts 356.4 350.2 353.0 378.4 377.4 378.4 377.6 383.0 14 Small time deposits9. 388.0 447.5 531.4 598.0 589.4' 598.0 601.6 605.7 15 Large time deposits10, 11 326.6 368.0 401.9 386.0 387.4 386.0 393.7 400.2 Thrift institutions 16 Savings deposits 233.7 232.3 216.4 211.4 212.9 211.4 210.6 221122..22 17 Money market deposit accounts 168.5 151.2 133.1 127.6 129.4 127.6 127.4 128.3 18 Small time deposits9 529.7 584.3 614.5 566.9 573.4 566.9 562.1 556.8 19 Large time deposits10 162.6 174.3 161.6 121.0 125.1 121.0 117.9 114.8 Money market mutual funds 20 General purpose and broker-dealer 221.7 241.1 313.6 347.7 334433..00 334477..77 335566..33 336600..55 21 Institution-only 88.9 86.9 101.9 125.7 120.5 125.7 130.1 139.3 Debt components 22 Federal debt 1,957.9 2,114.2 2,268.1 22,,553322..88rr 22,,550055..44'' 22,,553322..88'' 22,,555555..99 n.a. 23 Nonfederal debt 6,387.2 6,993.4 7,522.3 7,917.2'" 7,900.5' 7,917.2' 7,934.5 n.a. Not seasonally adjusted 24 Ml 766.2 804.2 811.9 844.3 826.1 844.3 833.2 823.4 25 M2 2,923.0 3,083.3 3,236.6 3,344.5 3,329.5 3,344.5 3,343.7 3,348.1 26 M3 3,690.3 3,931.5 4,067.0 4,125.f 4,117.7' 4,125.r 4,130.6 4,149.0 27 L 4,352.8 4,691.8 4,907.4 4,982.8' 4,965.4' 4,982.8' 4,989.9 n.a. 28 Debt 8,329.1 9,093.2 9,775.9 10,437.4' 10,376.7' 10,437.4' 10,480.2 n.a. Ml components 29 Currency 199.3 214.8 225.3 249.6 245.7 249.6 249.8 252.6 30 Travelers checks4 6.5 6.9 6.9 7.8 8.0 7.8 7.8 7.8 31 Demand deposits5 298.6 298.9 291.5 289.9 280.5 289.9 277.7 268.1 32 Other checkable deposits6 261.8 283.5 288.2 296.9 291.9 296.9 297.9 294.8 Nontransactions components 33 In M2 2,156.8 2,279.1 2,424.7 2,500.3r 2,503.3 2,500.3r 2,510.5 2,524.7 34 In M3 only 767.3 848.2 830.4 780.6' 788.3' 780.6' 786.9 801.0 Time and Savings accounts Commercial banks 35 Savings deposits 176.8 190.6 186.4 197.7 197.9 197.7 199.9 201.6 36 Money market deposit accounts 359.0 353.2 356.5 381.6 379.7 381.6 380.5 384.5 37 Small time deposits9. 387.2 446.0 529.2 596.0 588.4 596.0 602.0 606.3 38 Large time deposits10, 11 325.8 366.8 400.4 386. r 389.9 386.1' 392.0 398.7 Thrift institutions 39 Savings deposits 231.4 229.9 214.2 209.6 212.6 209.6 209.0 210.5 40 Money market deposit accounts 168.6 151.6 133.7 128.7 130.1 128.7 128.4 128.8 41 Small time deposits9. 529.5 583.8 613.8 565.0 572.5 565.0 562.5 557.4 42 Large time deposits10 163.3 175.2 162.6 121.0 125.9 121.0 117.4 114.4 Money market mutual funds 43 General purpose and broker-dealer 221.1 240.7 313.5 347.8 344.5 347.8 356.6 364.7 44 Institution-only 89.6 87.6 102.8 127.0 121.2 127.0 134.8 144.0 Repurchase agreements and Eurodollars 45 Overnight 83.2 83.4 77.3 73.9 77.7 73.9 71.5 71.1 46 Term 197.1 227.7 179.8 160.0' 165.2' 160.0' 158.0 158.4 Debt components 47 Federal debt 1,955.6 2,111.8 2,265.9 2,532.1 2,498.8 2,532.1 2,557.8 n.a. 48 Nonfederal debt 6,373.5 6,981.4 7,509.9 7,905.4' 7,877.9' 7,905.4' 7,922.4 n.a. For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Nonfinancial Statistics • May 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' Bank group, or type of customer 1988' 1989' 1990 July Aug. Sept. Oct. Nov. DEBITS TO Seasonally adjusted Demand deposits 1 All insured banks 219,795.7 256,150.4 278,202.3 274,559.5 295,570.0 267,680.2 295,490.0 294,468.6 270,911.4 2 Major New York City banks 115,475.6 129,319.9 131,740.9 129,034.4 144,314.2 126,088.7 136,082.4 140,531.5 129,636.7 3 Other banks 104,320.2 126,830.5 146,461.4 145,525.1 151,255.8 141,591.5 159,407.6 153,937.1 141,274.7 4 ATS-NOW accounts4 2,478.1 2,910.5 3,344.7 3,417.0 3,549.5 3,110.7 3,449.3 3,479.2 3,310.2 5 Savings deposits3 537.0 547.5 558.2 583.4 599.8 523.6 573.7 565.8 519.9 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 622.9 735.1 801.4 794.8 851.9 764.8 865.9 857.1 789.7 7 Major New York City banks 2,897.2 3,421.5 3,802.2 3,715.5 4,119.5 3,717.9 4,280.5 4,320.4 3,926.2 8 Other banks 333.3 408.3 468.8 468.4 484.9 447.9 515.1 494.9 455.6 9 ATS-NOW accounts4 13.2 15.2 16.4 16.8 17.4 15.1 16.8 16.8 15.9 10 Savings deposits 2.9 3.0 2.9 3.0 3.1 2.7 2.9 2.9 2.6 DEBITS TO Not seasonally adjusted Demand deposits3 11 All insured banks 219,790.4 256,133.2 277,719.5 277,167.8 302,515.9 257,936.7 298,947.2 277,536.6 279,499.3 12 Major New York City banks 115,460.7 129,400.1 131,784.7 130,100.1 147,040.1 121,343.4 142,664.0 133,220.6 133,491.9 13 Other banks 104,329.7 126,733.0 145,934.8 147,067.7 155,475.8 136,593.3 156,283.2 144,316.0 146,007.4 14 ATS-NOW accounts4 2,477.3 2,910.7 3,339.2 3,353.0 3,570.5 3,131.6 3,462.0 3,259.5 3,394.4 15 MMDA 2,342.7 2,677.1 2,928.1 3,042.6 3,189.2 2,775.9 3,095.5 2,805.0 2,990.3 16 Savings deposits5 536.3 546.9 557.1 596.0 599.6 513.6 616.3 505.1 520.9 DEPOSIT TURNOVER Demand deposits3 17 All insured banks 622.8 735.4 800.6 794.7 887.4 744.4 870.9 800.0 777.1 18 Major New York City banks 2,896.7 3,426.2 3,809.9 3,777.1 4,395.6 3,607.3 4,376.5 4,067.4 3,758.7 19 Other banks 333.2 408.0 467.3 467.9 505.7 436.6 503.1 459.3 450.4 20 ATS-NOW accounts4 13.2 15.2 16.4 16.7 17.7 15.4 17.1 15.8 16.0 21 MMDA® 6.6 7.9 8.0 8.3 8.6 7.5 8.3 7.4 7.9 22 Savings deposits5 2.9 2.9 2.9 3.0 3.1 2.6 3.1 2.6 2.7 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 • May 1991 1.23 LOANS AND SECURITIES All Commercial Banks' Billions of dollars; averages of Wednesday figures 1990 1991 CCaatteeggoorryy Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Seasonally adjusted 1 Total loans and securities2 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 2,721.2' 2,735.1 2 U.S. government securities 420.3 426.4 430.3 438.4 442.8 445.7 450.1 453.1 454.0 454.2 454.1' 458.0 3 Other securities 180.4 180.2 178.2 177.5 177.3 178.8 178.8 177.8 175.9 175.6 177.7' 177.6 4 Total loans and leases2 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 2,089.4' 2,099.5 5 Commercial and industrial ..... 643.5 645.9 644.3 645.3 644.4 645.1 644.7 643.7 646.5 648.1 644.3 643.9 6 Bankers acceptances held3... 7.5 7.6 7.6 7.8 7.6 7.4 7.5 7.3 7.4 7.5 7.7 6.8 7 Other commercial and industrial 636.0 638.3 636.7 637.4 636.7 637.7 637.1 636.4 639.1 640.5 636.6' 637.1 8 U.S. addressees4 631.0 634.0 632.2 633.2 632.5 633.4 632.6 631.7 634.0 635.3 631.1 631.5 9 Non-U.S. addressees4 4.9 4.3 4.4 4.3 4.3 4.3 4.5 4.7 5.1 5.2' 5.5 5.5 10 Real estate 782.7 790.8 798.9 805.9 814.5 818.0 822.5 827.7 832.0 836.5 837.3' 842.6 11 Individual 379.4 377.8 378.4 377.6 376.4 378.2 378.6 379.7 378.7 378.9 375.9' 377.7 12 Security 37.0 36.8 35.5 35.0 38.7 44.6 41.3 40.5 39.6 40.6 43.2 43.2 13 Nonbank financial institutions 33.7 34.0 34.1 34.4 34.7 35.0 35.2' 34.8r 34.6' 34.7' 34.2' 35.3 14 Agricultural 30.8 30.8 31.0 31.1 31.3 31.5 31.8 32.2 32.5 33.0 33.6 33.7 15 State and political subdivisions 38.6 38.2 37.9 37.3 36.4 35.8 35.2 35. 1' 34.8r 34.2 33.5 33.4 16 Foreign banks 8.3 8.6 8.7 7.4 7.0 7.9 8.1 9.0 8.2 7.4 6.6 6.9 17 Foreign official institutions 3.2 3.3 3.3 3.2 3.2 3.2 3.3 3.2 3.2 3.2 3.0 3.1 18 Lease financing receivables 32.4 32.4 32.6 32.4 32.6 32.7 32.8 33.3 32.9 32.7 32.4 32.8 19 All other loans 43.0 42.8 42.3 44.5 43.6 48.2 45.5' 43.6' 43.6r 44.6' 45.5' 46.9 Not seasonally adjusted 20 Total loans and securities2 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 2,737.3 21 U.S. government securities 423.8 427.5 430.3 437.1 439.9 444.0 448.2 450.8 454.1 451.5 455.8 463.9 22 Other securities 179.7 179.5 178.0 177.5 176.4 179.1 179.0 178.0 176.6 176.3 177.9 177.3 23 Total loans and leases 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 2,087.3' 2,096.1 24 Commercial and industrial ..... 645.8 650.6 648.3 647.7 644.6 643.5 640.9 641.2 644.5 648.0 641.1 643.0 25 Bankers acceptances held3... 7.5 7.4 7.6 8.0 7.3 7.2 7.5 7.4 7.6 7.7 7.6 7.0 26 Other commercial and industrial 638.4 643.2 640.8 639.7 637.3 636.3 633.4 633.8 636.9 640.3 633.4' 636.1 27 U.S. addressees 633.6 638.6 636.3 635.5 632.9 631.8 628.8 629.1 631.9 635.1 628.2 630.6 28 Non-U.S. addressees4 4.7 4.6 4.5 4.3 4.4 4.5 4.6 4.7 5.0 5.2 5.3 5.5 29 Real estate 779.4 788.4 798.0 806.0 814.9 819.9 824.2 830.3 834.0 837.9 837.1 839.5 30 Individual 376.6 375.1 376.6 375.6 374.1 377.4 380.4 380.6 379.8 383.8 380.1' 377.1 31 Security 38.1 38.3 34.9 37.1 38.6 43.9 40.3 39.5 38.5 40.0 41.0 44.8 32 Nonbank financial institutions 33.0 33.7 33.8 34.5 34.6 35.0 34.9' 34.7' ss.tr 36.1' 34.7' 34.9 33 Agricultural 29.5 29.8 30.6 31.4 32.1 32.5 32.9 33.1 32.9 32.9 32.9 32.7 34 State and political subdivisions 38.6 38.2 37.8 37.2 36.2 35.7 35.2 35.1' 34.7' 34.0 34.1 33.5 35 Foreign banks 7.9 8.3 8.6 7.5 7.1 8.0 8.2 9.3 8.4 7.6 6.6 6.8 36 Foreign official institutions 3.2 3.3 3.3 3.2 3.2 3.2 3.3 3.2 3.2 3.2 3.0 3.1 37 Lease financing receivables 32.4 32.4 32.5 32.2 32.4 32.6 32.8 33.3 33.1 32.8 32.8 32.9 38 All other loans 42.0 42.5 41.6 43.9 43.3 45.4 46.8' 46.3' 45.3' 46.5' 43.7' 47.7 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 Mar. Apr. May June July Aug. Sept. Oct/ Nov. Dec. Jan.' Feb. Seasonally adjusted 1 Total nondeposit funds2 — 270.9 268.9 269.0 272.3 281.1 283.8' 283.0' 291.6 292. 1' 287.4' 276.8 265.1 2 Net balances due to related foreign offices3 — 19.0 18.7 25.8 17.2 19.0 19.0 21.5 29.9 30.1 34.5' 33.4 24.6 3 Borrowings from other than commercial banks in United States4 251.8 250.3 243.2 255.1 262.0 264.8 261.4' 261.8 262. r 252.9' 243.4 240.5 4 Domestically chartered banks 197.2 193.7 186.6 196.8 201.6 202.2 198.8 196.9 195.1 187.2 182.4 177.6 5 Foreign-related banks 54.6 56.6 56.5 58.3 60.4 62.6 62.7' 64.9 67.0' 65.7' 61.0 62.9 Not seasonally adjusted 6 Total nondeposit funds2 — 276.5 269.7 277.3 275.1 277.2 282.5 278.6' 288.5 293.3' 281.9' 272.2 268.1 7 Net balances due to related foreign offices ... 18.3 16.7 28.5 17.4 16.6r 18.5 21.5 29.6 30.8 37.1 33.1 24.5 8 Domestically chartered banks -11.5 -10.6 -1.3 -6.1 -5.8 -3.4 -4.2 -1.0 .6 -4.2 -15.3 -15.2 9 Foreign-related banks 29.8 27.3 29.8 23.5 22.4 21.9 25.7 30.6 30.2 41.3 48.4 39.8 10 Borrowings from other than commercial banks in United States4 258.2 253.0 248.8 257.7 260.6 264.0 257.0' 259.0 262.5' 244.8' 239.1 243.6 11 Domestically chartered banks 202.3 194.8 191.6 197.7 199.1 201.7 195.6 195.0 197.6 182.9 177.9 179.8 12 Federal funds and security RP borrowings 197.8 191.0 188.3 194.6 196.2 198.1 191.6 191.7 194.8 180.1 174.7 177.1 13 Other6 . 4.5 3.7 3.4 3.2 2.9 3.6 4.0 3.2 2.9 2.8 3.2 2.8 14 Foreign-related banks6 55.9 58.2 57.2 60.0 61.5 62.3 61.5r 64.0 64.9' 61.9' 61.2 63.7 MEMO Gross large time deposits 15 Seasonally adjusted 459.0 456.2 454.4 451.5 451.9 449.2 443.6 438.0 435.2 431.8 440.9 450.3 16 Not seasonally adjusted 458.8 453.9 454.0 451.0 450.5 450.1 445.4 440.4 437.8 431.8 439.2 448.9 U.S. Treasury demand balances at commercial banks8 17 Seasonally adjusted 19.8 21.3 19.2 20.6 15.0 32.7 26.0 22.3 25.2 24.4 25.8 33.4 18 Not seasonally adjusted 16.7 20.0 25.2 20.9 15.2 23.5 31.0 20.9 19.2 23.0 29.4 39.3 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 • May 1991 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series1 Billions of dollars 1990 1991 AAccccoouunntt Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. ALL COMMERCIAL BANKING INSTITUTIONS2 1 Loans and securities 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 2,908.7 2,924.9 2 Investment securities 583.0 587.2 589.8 588.3 597.2 601.7 604.9 603.3 605.6 612.8 614.0 3 U.S. government securities 413.1 417.8 422.2 421.7 429.1 434.5 438.0 437.6 439.6 447.6 449.5 4 Other 170.0 169.3 167.6 166.6 168.0 167.2 166.8 165.7 166.0 165.2 164.5 5 Trading account assets 23.9 21.4 23.7 27.7 29.3 21.4 27.4 25.0 22.0 24.1 26.9 6 Total loans 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 2,271.8 2,283.9 7 Interbank loans 190.5 192.8 202.2 204.8 200.1 191.0 207.9 207.0 204.0 193.3 185.0 8 Loans excluding interbank 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 2,078.6 2,099.0 9 Commercial and industrial 650.4 645.8 646.9 641.5 639.7 639.7 643.4 644.4 650.8 637.2 645.1 10 Real estate 790.2 801.7 807.9 816.0 820.1 825.0 831.5 833.7 838.3 836.9 840.1 11 Individual 376.7 376.6 376.8 374.8 379.4 381.2 380.8 380.5 384.7 378.6 376.4 12 All other 224.2 221.7 224.3 225.6 231.1 227.1 235.5 231.2 231.5 225.9 237.4 13 Total cash assets 210.6 237.7 219.6 210.7 207.7 213.7 220.8 216.7 217.9 199.2 204.5 14 Reserves with Federal Reserve Banks. 31.5 27.6 31.8 29.8 30.0 33.6 29.7 33.0 23.4 16.5 18.1 15 Cash in vault 28.5 29.9 28.9 28.8 30.3 29.3 29.4 32.8 32.0 30.4 29.8 16 Cash items in process of collection ... 80.1 100.7 86.2 79.6 77.5 81.1 85.4 78.4 86.0 74.7 79.9 17 Demand balances at U.S. depository institutions 26.3 32.0 27.7 27.3 27.3 27.0 28.5 28.4 29.6 28.1 27.7 18 Other cash assets 44.2 47.5 45.0 45.2 42.5 42.8 47.8 44.2 46.8 49.6 49.0 19 Other assets 204.8 197.0 207.5 205.3 220.8 226.6 230.1 226.6 245.1 249.9 259.6 20 Total assets/total liabilities and capital 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 3,388.9 21 Deposits 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 2,365.0 22 Transaction deposits 600.9 618.1 598.6 590.1 589.1 595.3 612.1 598.1 637.1 587.9 594.1 23 Savings deposits 548.8 554.5 556.4 561.3 565.6 563.5 570.5 573.1 573.3 573.9 583.5 24 Time deposits 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 1,187.3 25 Borrowings 563.9 546.1 572.6 562.1 579.9 570.9 591.0 570.6 548.7 529.8 515.4 26 Other liabilities 216.0 223.3 223.9 220.5 226.2 233.1 236.0 255.3 264.4 268.8 282.3 27 Residual (assets less liabilities) 216.2 217.1 219.7 221.2 222.8 223.4 223.3 222.7 223.5 224.6 226.2 MEMO 28 U.S. government securities (including trading account) 428.2 430.9 436.1 440.4 446.3 445.1 454.2 451.9 451.1 459.4 463.7 29 Other securities (including trading account) 178.7 177.6 177.4 175.6 180.2 178.0 178.1 176.4 176.5 177.5 177.2 DOMESTICALLY CHARTERED COMMERCIAL BANKS3 30 Loans and securities 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 2,628.0 2,642.3 31 Investment securities 551.9 558.6 559.2 557.3 566.1 569.0 571.5 569.8 570.5 575.3 577.4 32 U.S. government securities 398.0 404.8 407.7 406.5 414.1 417.9 420.9 420.8 421.7 426.5 429.3 33 Other 154.0 153.7 151.5 150.8 152.0 151.2 150.6 149.1 148.8 148.7 148.2 34 Trading account assets 23.9 21.4 23.7 27.7 29.3 21.4 27.4 25.0 22.0 24.1 26.9 35 Total loans 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 2,028.6 2,038.0 36 Interbank loans 148.9 144.2 153.3 153.7 153.7 146.0 164.0 157.4 160.0 151.7 150.9 37 Loans excluding interbank 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 1,876.9 1,887.0 38 Commercial and industrial 524.0 521.4 520.1 517.3 514.0 513.2 515.4 513.4 512.7 504.2 508.4 39 Real estate 753.9 764.5 769.7 776.7 779.5 784.0 789.8 791.6 796.4 794.0 797.1 40 Individual 376.7 376.6 376.8 374.8 379.4 381.2 380.8 380.5 384.7 378.6 376.4 41 All other 204.7 202.9 205.5 206.9 209.8 205.7 209.5 207.4 207.9 200.2 205.1 42 Total cash assets 186.3 209.7 193.3 184.7 181.7 187.0 189.3 187.7 188.3 166.6 172.7 43 Reserves with Federal Reserve Banks. 29.8 26.6 30.9 28.9 28.0 32.1 28.5 31.5 23.0 15.3 17.0 44 Cash in vault 28.5 29.9 28.9 28.8 30.3 29.2 29.4 32.8 32.0 30.3 29.8 45 Cash items in process of collection ... 78.7 99.3 84.2 78.1 75.9 79.0 83.6 76.4 83.9 72.9 78.2 46 Demand balances at U.S. depository institutions 24.6 30.0 25.9 25.6 25.0 25.1 26.6 26.2 27.6 26.2 25.8 47 Other cash assets 24.7 23.9 23.4 23.4 22.5 21.5 21.2 20.9 21.8 22.0 21.9 48 Other assets 133.5 136.0 141.2 139.1 145.6 152.3 153.6 155.0 167.8 166.9 171.3 49 Total assets/liabilities and capital 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 2,986.3 50 Deposits 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 2,255.2 51 Transaction deposits 591.3 608.3 588.5 580.2 578.8 584.4 601.5 587.7 626.1 577.4 583.8 52 Savings deposits 545.8 551.6 553.4 558.3 562.6 560.4 567.4 569.8 570.0 570.6 580.2 53 Time deposits 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 1,091.2 54 Borrowings 406.4 393.6 410.3 396.0 404.3 395.8 400.4 394.1 375.6 380.1 371.8 55 Other liabilities 109.5 115.1 116.5 115.3 120.7 124.1 127.5 131.5 131.4 124.2 136.8 56 Residual (assets less liabilities) 212.4 213.4 216.2 217.7 219.2 219.7 219.6 219.0 219.8 220.9 222.6 MEMO 57 Real estate loans, revolving 53.2 54.1 55.0 56.3 57.7 58.6 60.6 61.1 61.7 62.9 63.3 58 Real estate loans, other 700.7 710.3 714.7 720.4 721.7 725.4 729.2 730.5 734.7 731.1 733.8 1. Back data are available from the Banking and Monetary Statistics section, the last Wednesday of the month based on a weekly reporting sample of Board of Governors of the Federal Reserve System, Washington, D.C., 20551. foreign-related institutions and guarter-end condition reports. These data also appear in the Board's weekly H.8 (510) release. 2. Commercial banking institutions include insured domestically chartered Figures are partly estimated. They include all bank-premises subsidiaries and commercial banks, branches and agencies of foreign banks, Edge Act and other significant majority-owned domestic subsidiaries. Loan and securities data Agreement corporations, and New York State foreign investment corporations. for domestically chartered commercial banks are estimates for the last Wednes- 3. Insured domestically chartered commercial banks include all member banks day of the month based on a sample of weekly reporting banks and quarter-end and insured nonmember banks. condition report data. Data for other banking institutions are estimates made for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Commercial Banks A19 1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS Millions of dollars, Wednesday figures 1991 AAccccoouunntt Jan. 2 Jan. 9 Jan. 16 Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Feb. 27 ASSETS 1 Cash and balances due from depository institutions 133,136 96,234 107,866 115,389 93,599 95,300 95,552 112,066 98,762 ? U.S. Treasury and government securities 177,443 180,405 180,439 182,704 182,598 185,685 187,472 188,605 186,968 Trading account 10,057 12,251 13,314 13,122 11,770 13,568 14,832 16,397 14,239 4 Investment account 167,386 168,154 167,124 169,581 170,828 172,116 172,640 172,208 172,730 5 Mortgage-backed securities' 80,976 80,824 79,871 81,188 81,572 81,960 81,965 82,117 82,577 6 All other maturing in 7 One year or less 18,775 18,646 18,709 18,746 18,468 17,865 1177,,990055 1188,,661177 1188,,333311 8 Over one through five years 37,783 38,466 38,832 39,217 39,586 40,850 40,963 39,703 39,773 9 Over five years 29,851 30,218 29,712 30,430 31,202 31,441 31,807 31,772 32,048 10 Other securities 60,873 60,444 60,704 60,387 60,434 60,432 60,222 60,293 60,544 11 Trading account 1,136 904 1,030 916 925 1,216 1,101 1,097 1,347 1? Investment account 59,736 59,539 59,674 59,471 59,509 59,216 59,121 59,196 59,197 N State and political subdivisions, by maturity 29,976 29,919 29,843 29,785 29,688 29,372 29,299 29,223 29,090 14 One year or less 3,688 3,706 3,735 3,756 3,746 3,756 3,740 3,716 3,702 IS Over one year 26,288 26,214 26,108 26,029 25,943 25,616 25,559 25,507 25,388 16 Other bonds, corporate stocks, and securities 29,760 29,620 29,832 29,686 29,821 29,844 29,823 29,973 30,108 17 Other trading account assets 10,464 10,920 12,278 11,581 11,326 12,293 11,614 11,188 11,278 18 Federal funds sold2 88,472 78,990 71,850 74,920 75,526 87,864 74,645 80,606 73,718 19 To commercial banks in the U.S 60,865 55,143 46,441 52,451 53,339 58,080 50,272 53,076 47,963 70 To nonbank brokers and dealers 22,786 19,813 22,132 19,869 19,062 25,385 20,742 24,511 21,870 71 To others3 4,821 4,033 3,276 2,600 3,126 4,399 3,631 3,018 3,884 ?? Other loans and leases, gross 1,067,960 1,057,597 1,060,475 1,060,078 1,053,061 1,054,525 1,055,749 1,059,192 1,057,032 73 Commercial and industrial 322,406 319,169 319,237 318,765 318,154 320,033 319,623 320,246 320,763 74 Bankers' acceptances and commercial paper 1,446 1,497 1,482 1,495 1,473 1,607 1,579 1,674 1,523 75 All other 320,960 317,673 317,756 317,269 316,681 318,426 318,045 318,571 319,240 76 U.S. addressees 319,294 316,341 316,291 315,775 315,358 317,040 316,522 317,156 317,842 27 Non-U.S. addressees 1,666 1,332 1,465 1,494 1,323 1,386 1,522 1,416 1,399 78 Real estate loans 399,682 400,427 400,950 400,662 400,488 400,555 400,538 401,089 400,812 79 Revolving, home equity 35,330 35,409 35,576 35,604 35,657 35,676 35,764 35,598 35,559 30 All other 364,352 365,018 365,374 365,058 364,831 364,879 364,774 365,491 365,253 31 To individuals for personal expenditures 200,762 198,590 197,875 197,379 196,404 195,577 195,150 195,317 194,931 3? To depository and financial institutions 51,092 48,552 49,634 51,338 47,153 48,093 48,931 49,171 48,763 33 Commercial banks in the United States 22,861 21,674 24,132 24,816 21,542 22,032 23,089 23,024 23,226 34 Banks in foreign countries 4,222 3,656 2,662 4,388 3,243 3,333 2,969 3,423 3,017 35 Nonbank depository and other financial institutions ... 24,009 23,222 22,840 22,134 22,368 22,728 22,873 22,724 22,520 36 For purchasing and carrying securities 13,019 13,222 14,435 14,169 13,469 13,754 14,723 16,197 15,143 37 To finance agricultural production 6,259 6,021 6,008 5,924 5,858 5,798 5,787 5,738 5,731 38 To states and political subdivisions 21,078 21,242 21,295 21,193 21,092 20,904 20,856 20,816 20,802 39 To foreign governments and official institutions 1,452 1,382 1,146 1,186 1,170 1,152 1,205 1,233 1,316 40 All other loans 25,136 21,993 22,613 22,215 21,938 21,347 21,552 22,019 21,429 41 Lease financing receivables 27,075 26,998 27,281 27,248 27,336 27,312 27,383 27,367 27,342 4? LESS: Unearned income — 4,307 4,305 4,314 4,251 4,249 4,207 4,215 4,228 4,218 43 Loan and lease reserve3 37,446 38,135 38,493 38,750 38,849 39,221 38,054 37,997 38,006 44 Other loans and leases, net 1,026,206 1,015,157 1,017,668 1,017,077 1,009,964 1,011,096 1,013,481 1,016,967 1,014,808 45 Other assets 164,187 159,749 161,426 157,236 162,560 166,265 165,577 162,883 164,024 46 Total assets 1,660,781 1,601,899 1,612,230 1,619,293 1,596,007 1,618,936 1,608,562 1,632,608 1,610,103 Footnotes appear on the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • May 1991 1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS—Continued Millions of dollars, Wednesday figures 1991 AAccccoouunntt Jan. 2 Jan. 9 Jan. 16 Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Feb. 27 LIABILITIES 47 Deposits 1,167,944 1,112,654 1,117,851 1,105,514 1,089,936 1,105,362 1,100,158 1,114,940 1,099,336 48 Demand deposits 278,832 225,097 229,172 223,942 213,853 218,833 217,141 228,6% 216,608 49 Individuals, partnerships, and corporations 218,324 181,495 184,959 177,418 172,109 176,618 176,436 181,508 173,674 50 Other holders 60,508 43,602 44,213 46,525 41,744 42,215 40,705 47,188 42,934 51 States and political subdivisions 9,346 6,599 6,617 7,302 6,756 6,507 6,199 7,074 6,787 52 U.S. government 4,834 1,884 4,076 1,941 1,511 1,419 1,186 1,608 1,627 53 Depository institutions in the United States 28,339 19,736 19,926 21,816 18,896 19,375 18,052 22,031 17,994 54 Banks in foreign countries 6,976 6,008 5,036 6,658 4,984 5,278 4,820 5,156 4,921 55 Foreign governments and official institutions 884 694 589 637 637 701 819 699 676 56 Certified and officers' checks 10,129 8,680 7,968 8,172 8,960 8,934 9,629 10,621 10,929 57 Transaction balances other than demand deposits 91,165 89,240 87,839 84,254 82,988 86,962 84,688 85,254 84,413 58 Nontransaction balances 797,947 798,317 800,839 797,317 793,096 799,567 798,329 800,989 798,314 59 Individuals, partnerships, and corporations 762,833 763,187 764,918 761,219 757,266 762,689 761,161 763,669 760,760 60 Other holders 35,114 35,130 35,922 36,098 35,829 36,878 37,168 37,320 37,555 61 States and political subdivisions 28,314 28,201 28,855 29,044 28,734 29,606 30,014 30,177 30,644 62 U.S. government 1,004 994 941 856 869 864 865 873 875 63 Depository institutions in the United States 5,306 5,464 5,597 5,682 5,731 5,906 5,801 5,788 5,559 64 Foreign governments, official institutions, and banks 490 470 529 516 495 502 489 481 476 65 Liabilities for borrowed money5 283,616 274,686 281,568 301,294 292,930 302,514 292,875 299,806 287,479 66 Borrowings from Federal Reserve Banks 336 540 10 4,889 0 0 0 525 0 67 Treasury tax and loan notes 13,992 9,856 20,174 28,988 28,200 28,228 28,012 28,756 29,199 68 Other liabilities for borrowed money6 269,288 264,290 261,384 267,417 264,731 274,285 264,862 270,525 258,281 69 Other liabilities (including subordinated notes and debentures) 99,280 103,587 101,801 101,255 102,305 100,043 103,517 106,108 111,559 70 Total liabilities 1,550,839 1,490,928 1,501,220 1,508,063 1,485,171 1,507,919 1,496,550 1,520,854 1,498,374 71 Residual (Total assets minus total liabilities)7 109,942 110,971 111,010 111,230 110,835 111,017 112,012 111,754 111,729 MEMO 72 Total loans and leases, gross, adjusted, plus securities .. 1,321,486 1,311,538 1,315,173 1,312,403 1,308,064 1,320,687 1,316,342 1,323,783 1,318,351 73 Time deposits in amounts of $100,000 or more 212,521 213,259 213,817 212,740 209,768 211,262 210,117 209,579 207,798 74 Loans sold outright to affiliates, total9 1,247 1,256 1,276 1,266 1,275 1,279 1,284 1,284 1,293 75 Commercial and industrial 714 724 736 730 737 743 746 748 753 76 Other 533 532 540 536 538 536 537 537 539 77 Foreign branch credit extended to U.S. residents 23,317 24,476 24,837 24,905 24,961 24,884 25,528 26,078 26,036 78 Net due to related institutions abroad -17,154 -9,531 -13,009 -13,058 -15,265 -18,304 -15,150 -12,185 -7,031 1. Includes certificates of participation, issued or guaranteed by agencies of the the United States. U.S. government, in pools of residential mortgages. 9. Affiliates include a bank's own foreign branches, nonconsolidated nonbank 2. Includes securities purchased under agreements to resell. affiliates of the bank, the bank's holding company (if not a bank), and noncon- 3. Includes allocated transfer risk reserve. solidated nonbank subsidiaries of the holding company. 4. Includes NOW, ATS, and telephone and pre-authorized transfer savings 10. Credit extended by foreign branches of domestically chartered weekly deposits. reporting banks to nonbank U.S. residents. Consists mainly of commercial and 5. Includes borrowings only from other than directly related institutions. industrial loans, but includes an unknown amount of credit extended to other than 6. Includes federal funds purchased and securities sold under agreements to nonfinancial businesses. repurchase. NOTE. Data that formerly appeared on table 1.28 Asset and Liabilities of Large 7. This balancing item is not intended as a measure of equity capital for use in Weekly Reporting Commercial Banks in New York City may be obtained from the capital adequacy analysis. Board's H.4.2 (504) statistical release. For address see inside front cover. 8. Excludes loans to and federal funds transactions with commercial banks in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Commercial Banks A21 1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS1 Assets and Liabilities Millions of dollars, Wednesday figures 1991 AAccccoouunntt Jan. 2 Jan. 9 Jan. 16 Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Feb. 27 1 Cash and balances due from depository institutions 18,381 17,531 17,989 19,072 18,317 19,135 17,842 17,228 1177,,886677 2 U.S. Treasury and government agency securities 11,781 12,140 13,031 13,686 1133,,666699 1133,,662277 1133,,225500 1133,,008822 1133,,008822 3 Other securities 7,805 7,858 7,838 7,788 7,624 7,595 7,698 7,592 7,576 4 Federal funds sold1 7,357 8,097 7,038 9,020 7,729 8,577 8,832 10,572 9,696 5 To commercial banks in the United States ... 5,317 5,702 4,191 5,885 4,739 3,686 3,726 5,584 3,953 6 To others 2,040 2,395 2,847 3,135 2,989 4,890 5,107 4,988 5,743 7 Other loans and leases, gross 142,833 139,242 139,143 138,297 137,190 136,325 136,638 135,724 136,822 8 Commercial and industrial 82,902 81,374 81,063 80,636 80,078 80,559 80,948 81,959 82,084 9 Bankers acceptances and commercial paper 3,189 3,062 3,122 2,973 2,238 2,588 2,446 2,273 2,111 10 All other 79,713 78,312 77,941 77,663 77,839 77,971 78,502 79,686 79,973 11 U.S. addressees 78,001 76,650 76,223 75,810 75,902 76,053 76,562 77,688 77,990 17 Non-U.S. addressees 1,713 1,662 1,718 1,853 1,937 1,918 1,940 1,998 1,983 13 Loans secured by real estate 26,859 26,773 27,044 27,099 27,232 27,331 27,529 27,637 27,845 14 To financial institutions 28,389 26,835 26,248 25,801 24,662 23,600 23,171 21,642 21,773 15 Commercial banks in the United States.. 21,360 20,063 19,478 18,869 17,806 16,410 15,848 14,403 14,177 16 Banks in foreign countries 931 840 1,032 1,276 1,193 1,403 1,442 1,590 1,514 17 Nonbank financial institutions 6,097 5,931 5,738 5,656 5,663 5,787 5,882 5,649 6,082 18 For purchasing and carrying securities — 1,379 1,451 1,635 1,414 1,611 1,250 1,577 1,176 1,645 19 To foreign governments and official institutions 221 209 215 213 222 225500 221133 220044 229900 70 All other3 3,083 2,599 2,938 3,133 3,386 3,335 3,200 3,105 3,185 21 Other assets (claims on nonrelated parties) .. 33,806 33,691 33,623 33,631 33,838 33,027 33,043 31,053 31,291 22 Total assets4 234,903 232,571 233,970 239,537 237,106 240,479 241,123 239,100 240,767 23 Deposits or credit balances due to other than directly related institutions 49,653 52,963 56,877 60,434 63,467 65,716 69,203 7700,,333322 7733,,228811 24 Demand deposits 4,677 4,296 4,665 3,948 4,030 3,993 4,007 4,046 4,019 25 Individuals, partnerships, and corporations 3,147 2,808 3,038 2,709 2,637 2,610 2,452 2,521 22,,446622 76 Other 1,530 1,487 1,627 1,239 1,394 1,384 1,555 1,525 1,558 27 Nontransaction accounts 44,976 48,668 52,212 56,486 59,436 61,723 65,196 66,286 69,262 28 Individuals, partnerships, and corporations 33,788 36,487 38,904 41,534 43,913 46,234 48,837 50,242 52,438 29 Other 11,188 12,181 13,308 14,952 15,523 15,489 16,358 16,044 16,824 30 Borrowings from other than directly related institutions6 102,803 105,614 95,701 99,537 93,491 98,136 9955,,222266 9922,,774444 9900,,113366 31 Federal funds purchased 43,057 47,233 36,364 38,924 36,788 42,198 40,342 42,011 36,641 3? From commercial banks in the United States 23,558 24,135 15,487 16,356 17,096 18,601 15,840 17,954 14,974 33 From others 19,498 23,098 20,877 22,569 19,692 23,598 24,502 24,057 21,667 34 Other liabilities for borrowed money 59,747 58,381 59,337 60,613 56,703 55,937 54,884 50,733 53,495 35 To commercial banks in the United States 31,254 29,186 29,806 29,057 26,821 24,134 24,156 21,326 21,818 36 To others 28,492 29,196 29,531 31,556 29,882 31,804 30,729 29,407 31,678 37 Other liabilities to nonrelated parties 33,882 32,702 32,905 33,495 33,396 32,526 32,497 30,372 30,084 38 Total liabilities8 234,903 232,571 233,970 239,537 237,106 240,479 241,123 239,100 240,767 MEMO 39 Total loans (gross) and securities adjusted9 .. 143,099 141,571 143,382 144,037 143,666 146,027 146,845 146,983 149,046 40 Net due to related institutions abroad 35,625 27,278 33,179 28,028 28,013 21,907 20,378 21,802 22,832 1. Includes securities purchased under agreements to resell. 6. Includes borrowings only from other than directly related institutions. 2. Includes transactions with nonbank brokers and dealers in securities. 7. Includes securities sold under agreements to repurchase. 3. Includes lease financing receivables. 8. Includes net due to related institutions abroad for U.S. branches and 4. Includes net due from related institutions abroad for U.S. branches and agencies of foreign banks having a net due to position. agencies of foreign banks having a net due from position. 9. Excludes loans to and federal funds transactions with commercial banks in 5. Includes other transaction deposits. the U.S. At the district level this also excludes trading account securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Nonfinancial Statistics • May 1991 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1990 1991 1986 1987 1988 1989 1990 Dec. Dec. Dec. Dec. Dec/ Aug. Sept. Oct. Nov. Dec.' Jan. Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 329,991' 358,997' 458,464' 530,123' 566,688 551,399' 562,508' 561,148' 564,482' 566,688 569,378 Financial companies' Dealer-placed paper2 2 Total 101,707 102,742' 159,777' 186,343' 218,953 200,302' 205,093 205,673' 211,986' 218,953 216,148 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 paper 4 Total 151,897' 174,332' 194,931' 212,640' 201,862 204,693' 206,079' 205,420' 204,191' 201,862 202,997 5 Bank-related (not seasonally adjusted) 40,860 43,173 43,155 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 6 Nonfinancial companies 77,712' 81,923' 103,756' 131,140' 145,873 146,404' 151,336' 150,055' 148,305' 145,873 150,233 Bankers dollar acceptances (not seasonally adjusted)6 7 Total 64,974 70,565 66,631 62,972 54,771 52,324 50,469 52,093 53,968 54,771 56,498 Holder 8 Accepting banks 13,423 10,943 9,086 9,433 9,017 9,944 9,366 9,189 8,751 9,017 10,029 9 Own bills 11,707 9,464 8,022 8,510 7,930 7,895 7,944 7,868 7,535 7,930 8,539 10 Bills bought 1,716 1,479 1,064 924 1,087 2,049 1,421 1,321 1,217 1,087 1,490 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 1,560 1,333 1,145 880 918 927 13 Others 50,234 58,658 56,052 52,473 44,836 40,821 39,770 41,760 44,337 44,836 45,542 Basis 14 Imports into United States 14,670 16,483 14,984 15,651 13,096 13,188 12,723 12,408 12,758 13,096 14,284 15 Exports from United States 12,960 15,227 14,410 13,683 12,703 12,221 11,889 13,238 13,865 12,703 12,870 16 All other 37,344 38,855 37,237 33,638 26,481 26,915 25,856 26,447 27,345 26,481 n.a. 1. Institutions engaged primarily in activities such as, but not limited to, 5. Includes public utilities and firms engaged primarily in such activities as commercial savings, and mortgage banking; sales, personal, and mortgage fi- communications, construction, manufacturing, mining, wholesale and retail trade, nancing; factoring, finance leasing, and other business lending; insurance under- transportation, and services. writing; and other investment activities. 6. Beginning January 1988, the number of respondents in the bankers accep- 2. Includes all financial company paper sold by dealers in the open market. tance survey were reduced from 155 to 111 institutions—those with $100 million 3. Beginning January 1989, bank-related series have been discontinued. or more in total acceptances. The panel is revised every January and currently has 4. As reported by financial companies that place their paper directly with about 100 respondents. The current reporting group accounts for over 90 percent investors. of total acceptances activity. 1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans Percent per year 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 Mar. 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 1991 1991, week ending IInnssttrruummeenntt 11998888 11998899 11999900 Nov. Dec. Jan. Feb. Jan. 25 Feb. 1 Feb. 8 Feb. 15 Feb. 22 MONEY MARKET RATES 1 7.57 9.21 8.10 7.81 7.31 6.91 6.25 6.88 7.46 6.32 6.29 6.26 2 Discount window boirowing2,11 6.20 6.93 6.98 7.00 6.79 6.50 6.00 6.50 6.50 6.07 6.00 6.00 Commercial paper3, ' 3 7.58 9.11 8.15 7.84 8.28 7.12 6.53 6.83 6.90 6.44 6.47 6.51 4 7.66 8.99 8.06 7.91 7.80 7.10 6.49 6.92 6.89 6.41 6.45 6.48 5 6-month 7.68 8.80 7.95 7.74 7.49 7.02 6.41 6.86 6.82 6.36 6.36 6.42 Finance paper, directly placed3,4'6 6 7.44 8.99 8.00 7.64 7.62 66..9955 66..3311 66..6688 66..7766 66..3322 66..3311 66..2255 7 7.38 8.72 7.87 7.75 7.32 6.92 6.38 6.77 6.73 6.29 6.34 6.39 8 6-month 7.14 8.16 7.53 7.42 6.95 6.59 6.14 6.55 6.47 6.06 6.07 6.16 Bankers acceptances3'4' 9 7.56 8.87 7.93 7.82 7.60 6.96 6.36 66..7766 66..6677 66..2288 66..3300 66..3388 10 6-month 7.60 8.67 7.80 7.58 7.25 6.84 6.22 6.63 6.54 6.14 6.15 6.24 Certificates of deposit, secondary market3'8 11 7.59 9.11 8.15 7.92 8.27 7.10 6.45 6.77 6.77 6.40 66..3388 66..4444 17 7.73 9.09 8.15 8.03 7.82 7.17 6.52 6.94 6.84 6.45 6.44 6.54 N 7.91 9.08 8.17 7.95 7.64 7.17 6.51 6.97 6.85 6.45 6.44 6.54 14 Eurodollar deposits, 3-month3'9 7.85 9.16 8.16 8.04 7.87 7.23 6.60 7.20 6.95 6.70 6.50 6.50 U.S. Treasury bills Secondary market3. 15 6.67 8.11 7.50 7.06 6.74 6.22 5.94 66..1122 6.17 55..9944 55..8877 55..9944 16 6.91 8.03 7.46 7.03 6.70 6.28 5.93 6.20 6.19 5.91 5.87 5.93 17 1-year 7.13 7.92 7.35 6.85 6.61 6.25 5.91 6.19 6.13 5.87 5.84 5.93 Auction average3' • 18 6.68 8.12 7.51 7.07 6.81 6.30 5.95 6.14 66..2222 55..9977 55..8866 55..9944 19 6.92 8.04 7.47 7.04 6.76 6.34 5.93 6.21 6.28 5.94 5.85 5.91 20 1-year 7.17 7.91 7.36 6.81 6.58 6.22 5.85 n.a. n.a. n.a. 5.85 n.a. CAPITAL MARKET RATES U.S. Treasury notes and bonds Constant maturities13 21 1-year 7.65 8.53 7.89 7.31 7.05 6.64 6.27 6.58 6.51 6.23 6.20 6.30 22 2-year 8.10 8.57 8.16 7.60 7.31 7.13 6.87 7.09 7.03 6.81 6.79 6.91 23 3-year 8.26 8.55 8.26 7.74 7.47 7.38 7.08 7.35 7.29 7.01 6.98 7.12 24 5-year 8.47 8.50 8.37 8.02 7.73 7.70 7.47 7.66 7.60 7.41 7.39 7.51 25 7-year 8.71 8.52 8.52 8.28 8.00 7.97 7.73 7.92 7.87 7.69 7.66 7.76 26 10-year 8.85 8.49 8.55 8.39 8.08 8.09 7.85 8.04 8.02 7.82 7.78 7.86 21 30-year 88..9966 8.45 8.61 8.54 8.24 8.27 8.03 8.22 8.19 8.01 7.97 8.03 Composite14 28 Over 10 years (long-term) 88..9988 88..5588 88..7744 8.60 8.31 8.33 8.12 8.28 8.25 8.08 8.05 8.13 State and local notes and bonds Moody's series 29 Aaa 7.36 7.00 6.96 6.75 6.63 6.57 n.a. 6.51 6.66 6.31 6.21 6.45 30 Baa 7.83 7.40 7.29 7.22 7.10 7.17 n.a. 7.10 7.13 7.07 6.93 6.98 31 Bond Buyer series10 77..6688 77..2233 7.27 7.18 7.09 7.08 6.91 7.06 7.00 6.86 6.81 6.97 Corporate bonds Seasoned issues 32 All industries 10.18 9.66 9.77 9.85 9.63 9.62 9.36 9.61 9.55 9.40 9.31 9.34 33 Aaa 9.71 9.26 9.32 9.30 9.05 9.04 8.83 9.05 9.00 8.87 8.77 8.81 34 Aa 9.94 9.46 9.56 9.59 9.39 9.37 9.16 9.36 9.33 9.21 9.12 9.14 35 A 10.24 9.74 9.82 9.88 9.64 9.61 9.38 9.58 9.54 9.40 9.34 9.36 36 Baa 10.83 10.18 10.36 10.62 10.43 10.45 10.07 10.44 10.34 10.13 10.00 10.04 37 A-rated, recently offered utility bonds .. 1100..2200 99..7799 1100..0011 10.07 9.95 9.83 9.54 9.80 9.65 9.53 9.46 9.53 MEMO: Dividend/price ratio19 38 Preferred stocks 9.23 9.05 8.88 8.72 8.71 8.46 8.69 8.61 8.57 8.44 8.41 39 Common stocks 3.64 3.45 n.a. 3.91 3.74 3.82 3.35 3.75 3.64 3.43 3.32 3.34 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 • May 1991 1.36 STOCK MARKET Selected Statistics 1990 1991 IInnddiiccaattoorr 11998888 11998899 11999900 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 149.97 180.13 183.48 196.68 196.61 181.45 173.22 168.05 172.21 179.57 177.95 197.75 2 Industrial 180.83 228.04 225.81 242.42 245.86 226.73 216.81 208.58 212.81 221.86 220.69 246.74 3 Transportation 134.09 174.90 158.64 177.37 173.18 147.41 136.95 131.99 132.96 141.31 145.89 166.06 4 Utility 72.22 94.33 90.61 93.65 89.85 85.81 83.30 87.27 89.69 91.56 88.59 92.08 5 Finance 127.41 162.01 133.23 147.93 143.11 128.14 118.59 108.01 113.76 122.18 121.39 141.03 6 Standard & Poor's Corporation (1941-43 = 10)1 265.88 323.05 334.63 360.39 360.03 330.75 315.41 307.12 315.29 328.75 325.49 362.26 7 American Stock Exchange (Aug. 31, 1973 = 50? 295.08 356.67 338.36 361.62 359.09 333.49 318.53 296.67 294.88 305.54 304.08 338.11 Volume of trading (thousands of shares) 8 New York Stock Exchange 161,386 165,568 156,842 153,634 160,490 174,446 142,054 159,590 149,916 155,836 166,323 226,635 9 American Stock Exchange 9,955 13,124 13,155 12,421 12,529 15,881 11,668 11,294 10,368 11,620 10,870 16,649 Customer financing (end-of-period balances, in millions of dollars) 10 Margin credit at broker-dealers 32,740 34,320 28,210 31,720 32,130 30,350 29,640 28,650 27,820 28,210 27,390 28,860 Free credit balances at brokers' 11 Margin-account5 5,660 7,040 8,050 6,490 6,385 7,140 7,285 7,245 7,300 8,050 7,435 7,190 12 Cash-account 16,595 18,505 19,285 15,625 17,035 16,745 16,185 15,820 17,025 19,285 18,825 19,435 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 A23 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1990 AAccccoouunntt 1988 11998899 Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. SAIF-insured institutions 1 Assets 1,350,500 1,249,055 1,223,350 1,210,338 1,197,787 l,174,615r l,162,561r 1,157,157' 1,124,895' 1,115,363 1,107,485 1,083,631 2 Mortgages 764,513 733,729 717,687 715,422 708,550 691,239 689,080' 684,967' 665,955' 662,451 653,512 633,957 3 Mortgage-backed securities 214,587 170,532 167,683 166,167 165,741 159,173 158,I46r 156,398' 154,196' 153,425 155,577 155,360 4 Contra-assets to mortgage assets' . 37,950 25,457 23,073 21,999 22,044 20,337 19,550 19,321 18,460' 17,031 16,908 16,926 5 Commercial loans 33,889 32,150 31,069 30,931 30,351 28,753 28,483 27,868 26,775' 26,053 25,249 24,233 6 Consumer loans 61,922 58,685 56,805 56,639 55,659 55,171 54,667' 53,387' 50,517' 49,323 48,552 47,218 7 Contra-assets to nonmortgage loans . 3,056 3,592 2,476 2,227 1,771 1,980 1,978' 2,022 1,956' 1,712 1,676 1,942 8 Cash and investment securities 186,986 166,053 162,313 153,346 152,391 155,674 150,396' 153,052' 148,041' 145,304 146,020 146,517 9 Other5 129,610 116,955 113,341 112,059 108,910 106,922 103,318' 102,829' 99,827' 97,550 97,159 95,215 10 Liabilities and net worth . 1,350,500 1,249,055 1,223,350 1,210,338 1,197,787 1,174,615' 1,162,561' 1,157,157' 1,124,895' 1,115,363 1,107,485 1,083,631 11 Savings capital 971,700 945,656 929,910 916,069 902,653 890,497 885,272 878,730 857,687' 851,810 846,820 835,532 12 Borrowed money 299,400 252,230 246,875 246,646 241,943 230,169 222,442 221,872 212,224' 206,771 202,316 195,619 13 FHLBB 134,168 124,577 117,489 115,620 114,047 109,733 106,127 105,882 101,731' 100,574 100,493 100,391 14 Other 165,232 127,653 129,386 131,026 127,896 120,436 116,315 115,990 110,493' 106,197 101,823 95,228 15 Other 24,216 27,556 25,997 27,341 28,807 25,151 26,749' 28,240 23,861' 25,585 26,135 21,247 16 Net worth n.a. 23,612 20,568 20,282 24,379 28,803 28,099 28,316' 31,124' 31,197 32,214 31,234 SAIF-insured federal savings banks 17 Assets 425,966 498,522 595,644 593,345 570,795 583,392 580,847 584,632 591,136 588,880 585,847 576,531 18 Mortgages 230,734 283,844 332,995 333,300 317,985 323,516 328,236 328,895 332,927 332,431 328,122 320,233 19 Mortgage-backed securities 64,957 70,499 80,059 81,030 77,781 78,001 80,474 80,994 82,418 82,219 84,190 81,205 20 Contra-assets to mortgage assets' . 13,140 13,548 11,844 11,590 10,798 10,200 9,227 9,339 9,964 9,578 9,305 9,591 21 Commercial loans 16,731 18,143 20,366 20,324 19,713 19,683 18,810 18,662 18,767 18,458 18,197 17,674 22 Consumer loans 2244,,222222 2288,,221122 20,365 20,324 32,407 32,745 31,003 31,183 30,750 30,682 30,421 29,933 23 Contra-assets to nonmortgage loans . 889 1,193 1,001 908 707 970 870 813 980 572 809 990 24 Finance leases plus interest 880 1,101 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 25 Cash and investment ... 61,029 64,538 76,158 72,618 70,999 75,081 71,354 73,756 73,602 75,117 72,454 75,940 26 Other 35,412 39,981 46,371 46,180 44,840 47,723 44,150 44,129 46,043 45,287 45,319 45,008 27 Liabilities and net worth . 425,966 498,522 595,644 593,345 570,795 583,392 580,847 584,632 591,136 588,880 585,847 576,531 28 Savings capital 298,197 360,547 433,000 429,469 413,009 427,379 423,472 424,260 434,705 436,080 436,903 434,297 29 Borrowed money 99,286 108,448 126,253 126,240 123,415 121,721 118,393 120,592 119,991 115,472 111,270 107,270 30 FHLBB 46,265 57,032 63,550 63,120 61,057 60,666 61,287 62,209 61,605 60,256 60,265 59,949 31 Other 53,021 51,416 62,703 63,120 62,358 61,055 57,106 58,383 58,386 55,216 51,005 47,321 32 Other 8,075 9,041 9,435 9,982 10,307 8,889 9,245 10,128 8,253 9,063 9,824 8,193 33 Net worth 20,218 22,716 24,169 23,505 21,138 21,944 26,424 26,420 24,859 24,837 24,931 24,172 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 DomesticN onfinancial Statistics • May 1991 1.37—Continued 1990 AAccccoouunntt 11998888 11998899 Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Credit unions4 34 Total assets/liabilities and capital 174,593 183,688 192,718 193,208 195,020 195,302 194,523 196,625 197,272 f f f 35 Federal 114,566 120,666 126,690 127,250 128,648 128,142 127,564 128,715 129,086 36 State 60,027 63,022 66,028 65,958 66,372 67,160 66,959 67,910 68,186 1 1 1 37 Loans outstanding 113,191 122,608 121,660 122,616 123,205 123,968 124,343 126,156 127,341 n.a. n.a. n.a. 38 Federal 73,766 80,272 79,407 80,205 80,550 81,063 81,063 82,040 82,823 1 1 39 State 39,425 42,336 42,253 42,411 42,655 42,905 43,280 44,116 44,518 40 Savings 159,010 167,371 175,942 175,745 176,701 178,127 176,360 178,081 177,532 41 Federal 104,431 109,653 115,714 115,554 116,402 116,717 115,305 116,411 115,469 1 • I 42 State 54,579 57,718 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 A23 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year Fiscal Fiscal Fiscal Type of account or operation year year year 1990 1991 1988 1989 1990' Sept. Oct. Nov. Dec. Jan. Feb. U.S. budget1 1 Receipts, total 908,166 990,701 1,031,228 102,86c 77,061' 70,507' 101,900' 100,713' 67,657 2 On-budget 666,675 727,035 749,574 78,528' 57,101' 45,531' 82,059' 70,023 45,954 3 Off-budget 241,491 263,666 281,654 24,332 19,960 24,976 19,841 30,690 22,063 4 Outlays, total 1,063,318 1,144,020 1,251,618 82,012' 108,346' 118,218' 109,212' 98,952' 93,737 5 On-budget 860,627 933,107' 1,026,551 80,599' 89,433' 96,769' 94,679' 79,035' 72,570 6 Off-budget 202,691 210,911 225,065 1,413 18,912 21,448 14,532 19,918 21,167 7 Surplus, or deficit (-), total -155,151' -153,32(y -220,390 20,848 -31,285 -47,711 -7,311 1,760 -26,080 8 On-budget -193,952 -206,072' -276,977 -2,071 -32,332 -51,238 -12,620 -9,012 -26,976 9 Off-budget 38,800 52,753' 56,590 22,919 1,048 3,528 5,309 10,772 8% Source of financing (total) 10 Borrowing from the public 166,139 141,806 264,453 -2,595 32,265 46,776 19,700 31,764 34,611 11 Operating cash (decrease, or increase (-)) . -7,962 3,425 818 17,832 4,720 12,533 -9,286 -30,627 2,341 12 Other -3,026' 8,089' -44,881 -421 -5,700 -11,59 -3,103 -2,897 -10,872 MEMO 13 Treasury operating balance (level, end of period) 44,398 40,973 40,155 40,155 35,435 22,902 32,188 62,815 60,474 14 Federal Reserve Banks 13,023 13,452 7,638 7,638 7,607 5,495 8,960 27,810 23,898 15 Tax and loan accounts 31,375 27,521 32,517 32,517 27,828 17,406 23,228 35,006 36,577 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 gainAoss 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 Nonfinancial Statistics • May 1991 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1 Millions of dollars Calendar year Fiscal Fiscal SSoouurrccee oorr ttyyppee year year 1989 1990 1990 1991 1989 1990 HI H2 HI H2 Dec. Jan. Feb. RECEIPTS 1 All sources 990,701 1,031,229' 527,574 470,276' 548,861' 503,119' 101,90c 100,713' 67,657 2 Individual income taxes, net 445,690 466,884 233,572 218,706 243,087 230,745 46,471 50,882 27,929 3 Withheld 361,386 390,480 174,230 193,2% 190,219 207,469 44,560 29,390 32,737 4 Presidential Election Campaign Fund 32 32 28 3 30 3 0 0 4 5 Nonwithheld 154,839 149,189 121,563 33,303 117,675 31,728 2,605 21,799 1,186 6 Refunds 70,567 72,817 62,251 7,898 64,838 8,455 694 308 5,998 Corporation income taxes 7 Gross receipts 117,015 110,017 61,585 52,269 58,830 54,044 23,425 5,025 3,611 8 Refunds 13,723 16,510 7,259 6,842 8,326 7,603 902 1,197 1,116 9 Social insurance taxes and contributions, net 359,416 380,047 200,127 162,574 210,476 178,468 25,480 39,604 29,872 10 Employment taxes and contributions2 332,859 353,891 184,569 152,407 195,269 167,224 24,918 38,472 27,824 11 Self-employment taxes and contributions3 18,504 21,795 16,371 1,947 19,017 2,638 0 1,795 1,445 12 Unemployment insurance 22,011 21,635 13,279 7,909 12,929 8,9% 217 778 1,678 13 Other net receipts4 4,546 4,522 2,277 2,260 2,278 2,249 345 354 370 14 Excise taxes 34,386 35,345 16,814 16,799 18,153 17,535 3,005 2,931 2,594 15 Customs deposits 16,334 16,707 7,918 8,667 8,0% 8,568 1,281 1,324 1,215 16 Estate and gift taxes 8,745 11,500 4,583 4,451 6,442 5,333 741 906 772 17 Miscellaneous receipts 22,839 27,237r 10,235 13,651' 12,106' 16,029' 2,399' 1,237' 2,780 OUTLAYS 18 All types 1,144,020 l,251,618r 565,425 587,394' 640,867' 647,222' 109,212' 98,952' 93,737 19 National defense 303,559 299,335 148,098 149,613 152,733 153,757 26,021 21,874 25,732 20 International affairs 9,574 13,760 6,567 5,971 6,770 8,943 488 395 929 21 General science, space, and technology 12,838 14,420 6,238 7,091 6,974 8,081 1,486 1,013 1,188 22 Energy 3,702 2,470 2,221 1,449 1,216 979 190 71 31 23 Natural resources and environment 16,182 17,009 7,022 9,183 7,343 9,930 1,138 1,398 1,183 24 Agriculture 16,948 11,998 9,619 4,132 7,450 6,878 2,742 1,516 578 25 Commerce and housing credit 29,091 67,495 4,129 22,295 38,672 37,491 4,597 -144 -2,257 26 Transportation 27,608 29,495 12,953 14,982 13,754 16,218 2,919 2,658 2,134 27 Community and regional development 5,361 8,466 1,833 4,879 3,987 3,939 -37 663 494 28 Education, training, employment, and social services 36,694 37,479 18,083 18,663 19,537 18,988 3,863 4,045 3,509 29 Health 48,390 58,101 24,078 25,339 29,488 31,424 5,206 5,663 5,464 30 Social security and medicare 317,506 346,383 162,195 162,322 175,997 176,353 29,301 30,625 30,476 31 Income security 136,031 148,299 70,937 67,950 78,475 75,948 13,904 14,299 15,475 32 Veterans benefits and services 30,066 29,112 14,891 14,864 15,217 15,479 2,446 %2 2,591 33 Administration of justice 9,422 10,076 4,801 4,909' 4,868' 5,265' 846' 951' 1,010 34 General government 9,124 10,822 3,858 4,760 4,916 6,982 976 1,071 147 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 16,362 16,064 16,782 37 Undistributed offsetting receipts7 -37,212 -36,615 -18,131 -18,935 -17,688 -19,829 -2,891 -4,172 -11,730 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 receipts. revisions to monthly totals have not been distributed among functions. Fiscal year 6. Net interest function includes interest received by trust funds. total for outlays does not correspond to calendar year data because revisions from 7. Consists of rents and royalties on the outer continental shelf, U.S. governthe Budget have not been fully distributed across months. ment contributions for employee retirement, and contributions to the Defense 2. Old-age, disability, and hospital insurance, and railroad retirement accounts. Cooperation Account. 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 3,397.3 2 Public debt securities 2,684.4 2,740.9 2,799.9 2,857.4 2,953.0 3,052.0 3,143.8 3,233.3 3,364.8 3 Held by public 2,095.2 2,133.4 2,142.1 2,180.7 2,245.2 2,329.3 2,368.8 2,437.6 n.a. 4 Held by agencies 589.2 607.5 657.8 676.7 707.8 722.7 775.0 795.8 n.a. 5 Agency securities 22.9 22.7 24.0 23.7 22.5 29.9 31.7 32.8 n.a. 6 Held by public 22.6 22.3 23.6 23.5 22.4 29.8 31.6 32.6 n.a. 7 Held by agencies .3 .4 .5 .1 .1 .2 .2 .2 n.a. 8 Debt subject to statutory limit 2,669.1 2,725.6 2,784.6 2,829.8 2,921.7 2,988.9 3,077.0 3,161.2 3,281.7 9 Public debt securities 2,668.9 2,725.5 2,784.3 2,829.5 2,921.4 2,988.6 3,076.6 3,160.9 3,281.3 10 Other debt1 .2 .2 .2 .3 .3 .3 .4 .4 .4 11 MEMO: Statutory debt limit 2,800.0 2,800.0 2,800.0 2,870.0 3,122.7 3,122.7 3,122.7 3,195.0 4,145.0 1. Includes guaranteed debt of Treasury and other federal agencies, specified SOURCES. Treasury Bulletin and Monthly Statement of the Public Debt of the participation certificates, notes to international lending organizations, and District United States. of Columbia stadium bonds. 1.41 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership Billions of dollars, end of period Type and holder 1987 1990 Ql Q2 Q3 Q4 1 Total gross public debt 2,431.7 2,684.4 2,953.0 3,364.8 3,052.0 3,143.8 3,233.3 3,364.8 By type 2 Interest-bearing debt 2,428.9 2,663.1 2,931.8 3,362.0 3,029.5 3,121.5 3,210.9 3,362.0 3 Marketable 1,724.7 1,821.3 1.945.4 2,195.8 1,995.3 2,028.0 2,092.8 2,195.8 4 Bills 389.5 414.0 430.6 527.4 453.1 453.5 482.5 527.4 5 Notes 1,037.9 1,083.6 1.151.5 1,265.2 1,169.4 1,192.7 1,218.1 1,265.2 6 Bonds 282.5 308.9 348.2 388.2 357.9 366.8 377.2 388.2 7 Nonmarketable' 704.2 841.8 986.4 1,166.2 1,034.2 1,093.5 1,118.2 1,166.2 8 State and local government series 139.3 151.5 163.3 160.8 163.5 164.3 161.3 160.8 9 Foreign issues 4.0 6.6 6.8 43.5 37.1 36.4 36.0 43.5 10 Government 4.0 6.6 6.8 43.5 37.1 36.4 36.0 43.5 11 Public .0 .0 .0 .0 .0 .0 .0 .0 12 Savings bonds and notes... 99.2 107.6 115.7 124.1 118.0 120.1 122.2 124.1 13 Government account series 461.3 575.6 695.6 813.8 705.1 758.7 779.4 813.8 14 Non-interest-bearing debt 2.8 21.3 21.2 2.8 22.4 22.3 22.4 2.8 By holder* 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 n.a. 22 State and local Treasurys 284.6 313.6 337.1 342.0 n.a. n.a. Individuals 23 Savings bonds 101.1 109.6 117.7 119.9 121.9 123.9 24 Other securities 71.3 79.2 93.8 95.0 n.a. n.a. 25 Foreign and international5 299.7 362.2 393.4 386.9 392.7 n.a. 26 Other miscellaneous investors6 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 • May 1991 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Millions of dollars, daily averages 1991, week ending Item Nov. Dec. Jan. Jan. 2 Jan. 9 Jan. 16 Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Feb. 27 IMMEDIATE TRANSACTIONS2 By type of security U.S. government securities 1 Bills 32,259 32,387 35,403 31,087 39,907 36,908 37,132 28,449 40,113 30,613 30,502 29,602 Coupon securities 2 Maturing in less than 3.5 years 33,722 28,498 38,084 25,299 40,250 32,314 48,320 32,661 57,607 40,351 39,528 36,705 3 Maturing in 3.5 to 7.5 years... 25,249 24,702 28,005 17,613 33,281 27,219 29,319 25,534 32,135 32,022 29,310 29,987 4 Maturing in 7.5 to 15 years.... 15,451 11,161 10,873 5,081 12,498 8,466 12,060 10,583 21,879 18,236 13,714 12,721 5 Maturing in 15 years or more.. 15,364 13,055 14,905 7,568 17,105 13,455 17,415 13,780 18,902 20,719 18,192 14,384 Federal agency securities Debt 6 Maturing in less than 3.5 years 4,562 4,968 4,716 5,129 5,410 4,210 4,459 4,671 4,456 4,026 3,531 3,872 7 Maturing in 3.5 to 7.5 years... 626 509 453 201 544 486 427 392 786 721 508 457 8 Maturing in 7.5 years or more 605 614 1,079 344 2,261 1,292 583 505 923 806 613 465 Mortgage-bac ked 9 Pass-throughs 8,646 12,308 10,991 8,502 15,847 10,970 8,615 9,468 11,283 11,728 7,788 10,060 10 All others 1,440 1,340 1,066 502 1,128 1,172 1,042 1,106 1,277 1,456 1,205 1,715 By type of counterparty Primary dealers and brokers 11 U.S. government securities.... 74,510 66,700 78,825 48,160 91,380 71,471 92,219 67,754 102,536 87,010 81,696 77,562 Federal agency 12 Debt securities 1,900 1,842 1,985 1,537 2,780 2,123 1,537 1,702 1,878 1,699 1,170 1,148 13 Mortgage backed securities . 5,036 7,230 6,048 4,982 8,019 6,151 5,187 5,355 5,591 6,401 4,663 5,957 Customers 14 U.S. government securities 47,535 43,102 48,445 38,487 51,661 46,891 52,026 43,253 68,100 54,932 49,549 45,836 Federal agency 15 Debt securities 3,894 4,248 4,263 4,136 5,435 3,864 3,932 3,865 4,286 3,854 3,482 3,646 16 Mortgage-backed securities . 5,050 6,418 6,008 4,022 8,956 5,991 4,470 5,219 6,969 6,783 4,331 5,817 FUTURE AND FORWARD TRANSACTIONS4 By type of deliverable security U.S. government securities 17 Bills 5,402 4,833 6,339 2,228 7,624 5,259 10,793 3,089 7,506 3,642 4,344 3,677 Coupon securities 2 2 1 1 1 0 8 9 F eder M a M M M l a a a a a t t t t u u u g u r r r e r i i i i n n n n n c g g g g y i i i i n n n n s e 7 l 3 1 c e . . 5 5 u s 5 s r y t t i e t o o t h a i a e 7 r 1 s n s . 5 5 o 3 y r y . e 5 a e m r a y s o r e a r s . e r . . . s . . . . 10 1 1 , , , 1 2 5 7 8 9 9 5 5 5 7 6 7 1 1 , , , 8 0 0 8 6 3 9 1 1 7 3 0 9 1 , , 3 8 8 4 6 6 0 7 2 1 4 0 4,4 8 6 5 7 4 6 1 7 6 4 0 12 1 1 , , , 0 8 1 6 6 0 2 6 5 0 9 9 8 1 , , 5 8 8 1 8 7 8 2 2 1 3 6 11 1 , , 7 5 2 8 9 6 9 4 5 2 8 9 7 1 , , 2 5 7 8 5 3 5 3 6 2 0 9 9 2 1 , , , 0 8 9 5 5 7 9 1 1 3 4 0 1 2 2 0 1 , , , , 2 0 9 1 5 1 2 0 3 2 8 3 9 2 , , 6 3 6 7 0 9 9 3 6 8 9 4 2 8 1 , , , 2 0 8 1 6 1 2 9 9 2 7 9 Debt 22 Maturing in less than 3.5 years 47 113 121 30 26 116 72 320 53 177 201 126 23 Maturing in 3.5 to 7.5 years... 57 36 40 6 4 21 150 4 9 59 6 19 24 Mo M rtg a a tu g r e i - n b g a c in k e 7 d .5 years or more 36 39 62 11 190 44 26 15 26 31 72 80 2 2 5 6 A Pa ll s s o - t t h h e r r o s u ghs 9 1 , , 0 1 2 5 5 1 6,6 7 0 8 3 0 9 1 , , 2 1 0 1 3 2 3,5 4 9 3 8 4 12 1 , , 3 3 4 6 8 9 11 1 , , 4 0 6 3 5 4 9 1 , , 4 2 9 6 8 8 5,7 9 4 7 1 4 9 1 , , 1 4 9 7 9 7 11, 7 68 0 8 2 11 1 , , 1 2 6 6 8 8 6,9 9 9 3 5 0 OPTION TRANSACTIONS5 By type of underlying securities U.S. government securities 27 Bills 63 10 64 0 58 14 38 160 120 78 236 0 Coupon securities 28 Maturing in less than 3.5 years 661 650 1,136 735 1,631 1,112 920 715 2,764 1,281 1,012 1,651 29 Maturing in 3.5 to 7.5 years ... 240 270 245 241 84 414 90 394 244 437 274 253 30 Maturing in 7.5 to 15 years 202 195 187 62 192 163 215 231 180 285 225 177 31 Feder M al a a tu g r e i n n c g y i n s e 1 c 5 u r y i e t a ie r s s or more.. 2,299 1,648 2,669 1,048 2,580 3,299 3,426 2,032 2,601 2,436 3,511 2,268 Debt 32 Maturing in less than 3.5 years 5 1 22 0 0 0 0 101 1 0 7 0 33 Maturing in 3.5 to 7.5 years... 0 0 0 0 1 1 0 0 0 0 1 0 34 Maturing in 7.5 years or more 1 0 0 0 1 0 0 0 0 0 0 4 Mortgage-backed 35 Pass-throuehs 370 382 356 284 538 274 331 306 376 645 191 285 36 All others 0 0 2 0 0 0 8 0 0 0 0 2 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 1991 week 1991, week ending ending Item Nov. Dec. Jan. Dec. 26 Jan. 2 Jan. 9 Jan. 16 Jan. 23 Jan. 30 Feb. 6 Feb. 13 Feb. 20 Positions2 NET IMMEDIATE3 By type of security U.S. government securities 1 Bills 11,077 14,443 11,468 12,751 17,283 10,781 11,211 12,237 10,004 11,307 15,836 12,181 Coupon securities 2 Maturing in less than 3.5 years 3,964 7,333 4,315 10,434 10,156 4,136 559 5,193 5,082 8,664 7,773 12,253 3 Maturing in 3.5 to 7.5 years -6,343 -1,780 -1,311 -1,868 424 902 -768 -3,413 -1,857 -5,528 -4,118 -6,142 4 Maturing in 7.5 to 15 years -6,674 -7,711 -7,520 -7,187 -6,890 -6,831 -7,520 -7,441 -8,500 -7,308 -4,794 -4,474 5 Maturing in 15 years or more -10,609 -9,616 -13,762 -9,599 -10,498 -13,960 -14,961 -13,985 -13,324 -12,030 -10,988 -12,617 Federal agency securities Debt 6 Maturing in less than 3.5 years 4,471 3,867 4,006 4,032 3,327 3,287 5,617 3,428 3,892 3,968 4,461 5,291 7 Maturing in 3.5 to 7.5 years 1,662 2,135 1,930 2,143 1,968 2,046 1,821 1,824 1,975 2,240 2,184 2,162 8 Maturing in 7.5 years or more 4,656 4,407 7,392 4,465 4,201 7,962 7,569 7,573 7,363 7,485 7,088 7,062 Mortgage-backed 9 Pass-throughs 21,001 21,431 23,290 20,680 22,564 27,809 22,343 21,408 21,778 23,495 27,571 25,590 10 All others 12,067 12,881 10,665 12,693 12,076 11,022 10,961 9,988 10,360 10,158 11,033 10,473 Other money market instruments 11 Certificates of deposit 1,993 2,526 2,936 2,725 2,271 2,584 3,040 3,043 3,189 3,488 3,161 2,796 12 Commercial paper 5,995 7,132 6,243 7,816 6,762 6,200 6,162 5,759 6,531 7,441 5,633 5,708 13 Bankers' acceptances 1,407 863 1,041 693 732 1,072 960 999 1,214 1,105 942 1,039 FUTURE AND FORWARD5 By type of deliverable security U.S. government securities 14 Bills -10,671 -19,084 -21,345 -21,009 -22,834 -23,447 -23,467 -19,460 -18,872 -19,314 -19,301 -14,857 Coupon securities 15 Maturing in less than 3.5 years -1,605 -1,347 -1,273 -2,231 -1,919 -1,363 -1,688 -2,518 705 -1,565 -2,617 -1,334 16 Maturing in 3.5 to 7.5 years -890 -3,308 -3,147 -3,851 -4,178 -3,791 -3,103 -2,571 -2,867 -2,887 -2,013 -2,131 17 Maturing in 7.5 to 15 years -1,726 -1,000 -917 -456 -734 -1,270 -676 -920 -937 -328 -776 -621 18 Maturing in 15 years or more -5,330 -5,865 -5,487 -6,516 -5,934 -5,838 -3,837 -5,764 -6,157 -7,048 -5,043 -3,906 Federal agency securities Debt 19 Maturing in less than 3.5 years 69 189 236 149 132 123 189 225 434 267 359 234 20 Maturing in 3.5 to 7.5 years 45 54 15 93 51 -34 -37 110 10 25 214 75 21 Maturing in 7.5 years or more -35 -117 -84 -76 -67 -76 -92 -124 -50 -66 -39 -47 Mortgage-backed 22 Pass-throughs -11,250 -9,587 -11,001 -8,133 -10,757 -15,511 -10,196 -8,911 -9,161 -13,079 -18,492 -14,658 23 All others --22,,660044 -2,150 -547 -1,880 -1,241 -1,100 -285 31 -677 -266 -1,043 -674 Other money market instruments 24 Certificates of deposit 85,459 48,860 53,410 49,743 45,519 47,017 61,280 56,755 50,752 54,058 19,020 4,907 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 169,357 145,088 161,799 132,538 148,182 168,573 160,269 158,837 163,110 163,877 158,693 169,523 28 Term 224,231 211,555 222,596 216,107 183,698 214,825 230,712 226,668 225,547 248,830 246,055 233,033 Repurchase agreements 29 Overnight and continuing 235,064 244,723 261,845 242,359 254,613 263,060 268,767 258,038 258,273 271,015 258,164 284,136 30 Term 220055,,444411 176,412 189,444 181,651 143,930 183,723 193,099 196,142 195,086 208,564 219,607 201,160 Securities borrowed 31 Overnight and continuing 48,043 55,446 53,229 54,971 54,080 54,913 53,648 52,199 51,965 52,860 48,922 49,962 32 Term 2222,,006677 22,406 24,357 22,970 22,685 23,950 25,409 24,576 24,099 23,451 22,235 22,978 Securities lent 33 Overnight and continuing 5,518 6,176 6,463 6,615 6,600 6,773 6,452 6,352 6,196 6,751 6,375 7,207 34 Term 11,,992222 1,206 719 1,936 832 401 829 835 778 725 784 871 Collateralized loans 35 Overnight and continuing 4,434 6,097 5,950 7,449 5,736 5,457 5,930 6,062 6,291 6,806 5,640 4,639 36 Term 1,078 890 1,066 695 396 918 779 1,392 1,320 1,384 1,572 1,648 MEMO: Matched book7 Reverse repurchases 37 Overnight and continuing 105,308 94,705 106,486 85,221 97,987 109,437 103,973 104,915 109,985 106,930 107,462 112,897 38 Term 179,011 168,822 181,794 170,680 146,342 179,319 186,140 185,169 183,574 203,506 200,490 190,709 Repurchases 39 Overnight and continuing 126,078 123,020 141,455 115,356 126,933 145,740 142,360 138,640 142,516 146,452 134,462 147,567 40 Term 152,980 129,305 140,092 130,387 104,515 136,971 139,944 144,241 146,257 161,940 168,977 153,053 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 • May 1991 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1990 1991 AAggeennccyy 11998866 11998877 11998888 11998899 Sept. Oct. Nov. Dec. Jan. 1 Federal and federally sponsored agencies 307,361 341,386 381,498 411,805 421,308 431,519 430,842 434,668 0 2 Federal agencies 36,958 37,981 35,668 35,664 42,420 42,685 42,191 42,159 42,141 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 11,346 11,346 11,346 11,376 11,376 5 Federal Housing Administration4 138 183 150 328 357 382 387 393 329 6 Government National Mortgage Association participation certificates 2,165 1,615 0 0 0 0 0 0 0 7 Postal Service 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 23,762 24,002 23,510 23,435 23,481 9 United States Railway Association 85 0 0 0 0 0 0 0 0 10 Federally sponsored agencies7 270,553 303,405 345,830 375,407 378,388 388,834 388,651 392,509 0 11 Federal Home Loan Banks 88,758 115,727 135,836 136,108 116,336 117,120 116,627 117,895 115,402 12 Federal Home Loan Mortgage Corporation 13,589 17,645 22,797 26,148 27,985 29,073 30,035 30,941 0 13 Federal National Mortgage Association 93,563 97,057 105,459 116,064 118,826 119,775 122,257 123,403 125,849 14 Farm Credit Banks8 62,478 55,275 53,127 54,864 54,382 56,788 53,469 53,590 53,717 15 Student Loan Marketing Association 12,171 16,503 22,073 28,705 33,376 33,592 33,777 34,194 0 16 Financing Corporation10 0 1,200 5,850 8,170 8,170 8,170 8,170 8,170 0 17 Farm Credit Financial Assistance Corporation 0 0 690 847 1,261 1,261 1,261 1,261 0 18 Resolution Funding Corporation 0 0 0 4,522 18,052 23,055 23,055 23,055 29,996 MEMO 19 Federal Financing Bank debt13 157,510 152,417 142,850 134,873 173,318 180,538 177,620 179,083 181,062 Lending to federal and federally sponsored agencies 20 Export-Import Bank 14,205 1111,,997722 11,027 10,979 11,340 11,340 1111,,334400 11,370 1111,,337700 71 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 4,850 4,850 4,850 23 Tennessee Valley Authority 15,797 16,709 16,955 16,519 14,382 14,622 14,130 14,055 14,101 24 United States Railway Association 85 0 0 0 0 0 0 0 0 Other Lending14 25 Farmers Home Administration 65,374 59,674 58,496 53,311 52,049 52,324 52,324 52,324 5522,,116699 76 Rural Electrification Administration 21,680 21,191 19,246 19,265 19,042 18,966 18,968 18,890 18,906 27 32,545 32,078 26,324 23,724 64,927 71,708 69,310 70,896 72,968 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 TTyyppee ooff iissssuuee oorr iissssuueerr,, 11998888 11998899 11999900'' oorr uussee July Aug. Sept. Oct.' Nov. Dec. Jan.' Feb. 1 All issues, new and refunding1 114,522 113,646 120,339 8,513 10,899 13,930 8,512 9,961 12,250 7,230 10,156 Type of issue 2 General obligation 30,312 35,774 39,610 2,624 3,400 3,763 3,530 3,024 3,536 22,,334433 44,,883388 3 Revenue 84,210 77,873 81,295 5,889 7,499 10,167 4,982 6,937 8,714 4,887 5,318 Type of issuer 4 State 8,830 11,819 15,149 %5 1,568 2,317 1,470 1,337 1,3% 771133 11,,993388 5 Special district and statutory authority 74,409 71,022 72,661 5,883 6,%2 8,188 4,512 5,879 7,032 4,563 5,306 6 Municipalities, counties, and townships 31,193 30,805 32,510 1,666 2,369 3,425 2,530 2,745 3,822 1,954 2,912 7 Issues for new capital, total 79,665 84,062 103,235 7,123 9,061 12,713 7,936 9,058 10,707 6,977 9,753 Use of proceeds 15,021 15,133 17,042 1,413 1,345 1,472 1,743 1,009 11,,441188 11,,007799 11,,440099 9 Transportation 6,825 6,870 11,650 683 540 920 1,069 727 2,008 711 43 10 Utilities and conservation 8,4% 11,427 11,739 694 1,002 687 806 1,301 776 1,1% 1,816 11 Social welfare 19,027 16,703 23,099 1,741 2,554 3,995 1,153 1,992 2,001 891 803 5,624 5,036 6,117 509 700 674 497 540 933 607 602 13 Other purposes 24,672 28,894 34,607 2,083 2,919 4,%5 2,668 4,392 3,571 2,393 5,080 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 1991 Type of issue or issuer, 1988 1989 1990 or use July Aug. Sept. Oct. Nov. Dec. 1 All issues 410,707 376,435' 234,853' 29,157 19,966 13,758' 14,917 20,361 24,944' 20,879' 2 Bonds2 352,906 318,564' 234,853 26,284 17,719 12,950' 14,491 19,399 23,709' 19, mr Type of offering 3 Public, domestic 202,028 181,084' 188,361' 22,823' 14,414 11,754' 12,582 17,534 22,003 18,414' 4 5 . P S r o iv ld a t a e 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 6 5 2 1 9 2 n 3 . , a 0 . 5 4' 3 n , . 4 a 6 . 1' 3 n ,3 .a 0 . 5 1 n , . 1 a % . 1 n , . 9 a 0 . 9 1 n , . 8 a 6 . 5 1 n , . 7 a 0 . 6 n. 6 a 7 . 6' Industry group 6 Manufacturing 70,569 76,345 38,168' 4,093' 2,015' 854 2,588' 3,521' 6,582' 2,782' 7 Commercial and miscellaneous 62,089 49,342' 10,704 3,135 1,822 234 138 548 794 980 8 Transportation 10,075 10,105 4,922' 1,001 270 489' 533 230 453 351' 9 Public utility 19,528 17,059 13,788' 2,561 703 818 928 7% 2,168 1,958' 1 1 0 1 C Re o a m l m es u t n a i te c a a ti n o d n financial 18 5 4 , , 9 6 5 9 2 2 15 8 7 , , 5 2 0 1 3 3 13 4 8 , , 8 9 6 7 C 9' 15, 4 0 1 8 1 4 ' 12,7 13 7 7 1 ' 10,4 6 8 8 8 10, 2 0 6 3 8 6 ' 14, 2 0 8 1 8 6 ' 13, 6 0 6 4 9 2 ' ' 1 1 1 , ,6 39 2 3 6 ' ' 12 Stocks2 57,802 57,870 2,873 2,247 426 962 1,235 1,789 Type 13 Preferred 6,544 6,194 3,998 310 350 145 100 550 265 175 14 Common 35,911 26,030 19,443 2,563 1,897 663 327 412 970 1,614 15 Private placement3 15,346 25,647 n.a.' n.a. n.a. n.a. n.a. n.a. n.a. Industry group 2 1 1 1 1 0 6 7 8 9 C T C P M u r o o a a b m m n n l u i m m s c f p u e a u o r c n r t c t i i t u i l c a a i r a t t l y i t i n o i a o g n n n d miscellaneous 7 8 1 1 , , , , 6 4 5 8 5 0 1 4 9 3 8 5 9 8 5 9 7 3 1 1 , , , , , 3 4 0 9 9 0 4 9 2 0 8 6 0 9 4 n 4 5 , , . 2 0 4 a 1 2 . 2 1 2 9 6 6 6 2 74 6 2 2 8 5 9 0 1 5 3 1 0 4 7 7 0 0 8 3 2 1 1 5 7 2 3 1 0 1 5 9 1 3 7 0 0 0 9 2 2 1 9 6 9 7 0 7 4 0 4 1 6 4 5 2 2 0 0 4 2 1 8 4 1 6 6 8 5 0 21 Real estate and financial 37,798 34,028 11,055 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 • May 1991 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Asset Position Millions of dollars 1990 1991 IItteemm 11998899 11999900 June July Aug. Sept. Oct. Nov. Dec. Jan. INVESTMENT COMPANIES1 1 Sales of own shares2 306,445 345,780 28,301 29,444 29,227 23,387 27,511 25,583 34,553 38,339 2 Redemptions of own shares3 272,165 289,573 23,340 22,933 24,837 21,053 23,112 22,085 29,484 27,653 3 Net sales 34,280 56,207 4,961 6,511 4,390 2,334 4,399 3,498 5,069 10,686 4 Assets4 553,871 570,744 582,190 586,526 554,722 535,787 538,306 557,676 570,744 593,096 5 Cash position5 44,780 48,638 49,861 48,944 51,103 51,128 51,847 52,829 48,638 54,825 6 Other 509,091 522,106 532,329 537,582 503,619 484,659 486,459 504,847 522,106 538,271 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 Ql 1 Total nonfarm business 507.40 533.91 546.67 502.05 514.95 519.58 532.45 535.49 534.86 532.84 557.92 Manufacturing 2 Durable goods industries 82.56 83.70 83.01 82.44 83.60 83.41 86.35 84.34 82.67 81.42 82.79 3 Nondurable goods industries 101.24 108.60 110.57 98.47 102.40 108.47 105.02 110.82 111.81 106.74 108.28 Nonmanufacturing 4 Mining 9.21 9.81 9.38 9.24 9.24 9.38 9.58 9.84 9.98 9.84 10.24 Transportation 5 Railroad 6.26 6.30 6.62 5.81 6.36 6.80 6.45 6.66 5.60 6.48 6.22 6 Air 6.73 9.02 10.82 6.84 8.89 5.75 9.35 9.36 10.05 7.31 11.03 7 Other 5.85 6.14 6.35 5.78 5.78 5.69 6.33 5.84 5.76 6.63 6.51 Public utilities 8 Electric 44.81 43.99 45.72 46.37 44.44 44.66 43.37 42.62 43.63 46.34 47.33 9 Gas and other 21.47 22.97 22.16 21.72 20.75 21.15 22.34 21.65 23.85 24.05 24.43 10 Commercial and other2 229.28 243.39 252.04 225.39 233.50 234.25 243.66 244.37 241.51 244.02 261.08 •Trade and services are no longer being reported separately. They are included 2. "Other" consists of construction; wholesale and retail trade; finance and in Commercial and other, line 10. insurance; personal and business services; and communication. 1. Anticipated by business. SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Finance Companies A35 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities1 Billions of dollars, end of period 1989 1990 AAccccoouunntt 11998855 11998866 11998877 Ql Q2 Q3 Q4 Ql Q2 Q3 ASSETS Accounts receivable, gross2 1 111.9 134.7 141.1 139.1 143.9 146.3 140.8 137.9 138.6 140.9 157.5 173.4 207.4 243.3 250.9 246.8 256.0 262.9 274.8 275.4 28.0 32.6 39.5 45.1 47.1 48.7 48.9 52.1 55.4 57.7 4 297.4 340.6 388.1 427.5 441.9 441.8 445.8 452.8 468.8 474.0 Less: S 39.2 41.5 45.3 51.0 52.2 52.9 52.0 51.9 54.3 55.1 ft 4.9 5.8 6.8 7.4 7.5 7.7 7.7 7.9 8.2 8.6 7 253.3 293.3 336.0 369.2 382.2 381.3 386.1 393.0 406.3 410.3 8 45.3 58.6 58.3 75.1 81.4 85.2 91.6 92.5 95.5 102.8 9 229988..66 335511..99 394.2 444.3 463.6 466.4 477.6 485.5 501.9 513.1 LIABILITIES 111000 18.0 18.6 16.4 11.3 12.1 12.2 14.5 13.9 15.8 15.6 111111 99.2 117.8 128.4 147.8 149.0 147.2 149.5 152.9 152.4 148.6 Debt PPP 12.7 17.5 28.0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 1133 94.4 117.5 137.1 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 1144 n.a. 56.9 59.8 60.3 63.8 70.5 72.8 82.0 11115555 133.6 140.5 145.1 147.8 145.7 153.0 156.6 11116666 41.5 44.1 52.8 58.1 63.5 61.8 62.6 61.7 66.1 68.7 11117777 3322..88 3366..44 3311..55 36.6 38.8 39.8 39.4 40.7 41.8 41.6 1188 229988..66 335511..99 339944..22 444.3 463.6 466.4 477.6 485.5 501.9 513.1 1. Components may not sum 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 1991 TTyyppee 11998888 11998899 119999CC Aug. Sept. Oct. Nov. Dec/ Jan. 1 234,578 258,504 292,117 283,043 285,654 287,921 287,819 292,117 294,133 Retail financing of installment sales ? 36,957 39,139 37,756 38,610 38,470 39,150 38,600 3377,,775566 3388,,006622 3 Equipment 28,199 29,674 31,867 30,707 30,607 30,487 30,729 31,867 31,984 4 Pools of securitized assets2 n.a. 698 951 987 946 902 927 951 911 5 32,357 33,074 31,385 34,429 37,082 35,258 33,111 3311,,338855 3322,,446677 6 5,954 6,8% 11,504 9,812 9,791 10,698 10,847 11,504 11,543 7 All other 9,312 9,918 9,043 9,707 9,597 9,477 9,447 9,043 9,381 8 Pools of securitized assets n.a. 0 2,950 650 863 679 649 2,950 2,836 Leasing 9 24,875 27,074 39,622 30,942 30,453 31,303 31,601 39,622 39,303 10 57,658 68,112 75,240 78,714 79,158 80,833 81,427 75,240 76,576 11 Pools of securitized assets2 n.a. 1,247 1,849 1,703 1,655 1,724 1,884 1,849 1,854 1? Loans on commercial accounts receivable and factored commercial accounts receivable 18,103 19,081 23,231 19,974 20,538 2200,,774400 2211,,665522 2233,,223311 2222,,113300 13 All other business credit 21,162 23,590 26,720 26,809 26,495 26,670 26,944 26,720 27,086 Net change (during period) 14 22,434 22,580 31,396 5,427 2,611 2,267 -101 4,298 2,015 Retail financing of installment sales 15 819 2,182 -1,383 -321 -141 668800 --554499 --884444 330066 16 1,386 1,475 2,195 84 -100 -120 243 1,138 118 17 Pools of securitized assets2 n.a. -26 253 187 -41 -44 25 24 -40 Wholesale 18 Automotive 2,288 716 -1,689 1,271 2,653 --11,,882233 -2,147 --11,,772277 11,,008833 19 Equipment 377 940 2,389 -118 -21 907 149 657 39 70 All other 983 605 -874 -16 -110 -120 -29 -404 338 21 Pools of securitized assets2 n.a. 0 2,950 650 213 -184 -30 2,301 -114 Leasing ?? Automotive 2,777 2,201 12,548 731 -488 850 298 88,,002211 --331199 ?3 9,752 9,187 7,128 2,398 444 1,675 594 -6,188 1,337 24 Pools of securitized assets n.a. 526 602 -57 -48 69 160 -35 5 ?5 Loans on commercial accounts receivable and factored commercial accounts receivable -65 979 4,149 -103 564 220022 991122 11,,557799 --11,,110011 26 All other business credit 4,119 3,7% 3,131 721 -314 175 273 -223 366 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 Nonfinancial Statistics • May 1991 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1990 1991 IItteemm 11998888 11998899 11999900 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms1 1 Purchase price (thousands of dollars) 150.0 159.6 153.2 161.5 156.6 146.1 151.5 156.3 148.3 153.2 2 Amount of loan (thousands of dollars) 110.5 117.0 112.4 118.3 114.8 105.1 111.2 115.4 112.3 113.8 3 Loan/price ratio (percent) 75.5 74.5 74.8 74.5 74.7 73.5 75.0 74.9 77.2 76.3 4 Maturity (years) 28.0 28.1 27.3 27.2 27.2 26.9 27.1 28.6 28.1 28.3 5 Fees and charges (percent of loan amount) 2.19 2.06 1.93 2.07 1.78 1.80 1.68 1.85 1.75 1.73 6 Contract rate (percent per year) 8.81 9.76 9.68 9.75 9.60 9.68 9.61 9.45 9.36 9.28 Yield (percent per year) 7 OTS series3 9.18 10.11 10.01 10.11 9.90 9.98 9.90 9.76 9.65 9.57 8 HUD series4 10.30 10.21 10.08 10.12 10.18 10.11 9.86 9.66 9.53 9.49 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (HUD series)5 10.49 10.24 10.17 10.28 10.24 10.23 9.81 9.66 9.58 9.57 10 GNMA securities6 9.83 9.71 9.51 9.59 9.65 9.66 9.46 9.08 8.87 8.66 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 101,329 104,974 113,329 113,507 113,718 114,216 115,085 116,628 117,445 118,284 12 FHA/VA-insured 19,762 19,640 21,028 21,101 21,364 21,495 21,530 21,751 21,854 21,947 13 Conventional 81,567 85,335 92,302 92,406 92,354 92,721 93,555 94,877 95,591 96,337 Mortgage transactions (during period) 14 Purchases 23,110 22,518 23,959 2,134 2,123 2,077 2,078 2,410 1,781 1,792 Mortgage commitments1 15 Issued (during period) n.a. n.a. n.a. 2,302 2,073 1,849 2,426 2,104 1,889 1,779 16 To sell (during period)9 n.a. n.a. n.a. 761 644 92 0 0 2r 0 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)9 17 Total 15,105 20,105 20,419 20,564 20,508 20,790 21,301 21,857 n.a. n.a. 18 FHA/VA 620 590 547 541 536 530 524 518 n.a. n.a. 19 Conventional 14,485 19,516 19,871 20,023 19,972 20,260 20,777 21,339 n.a. n.a. Mortgage transactions (during period) 20 Purchases 44,077 78,588 75,517 5,417 5,798 6,118 6,981 10,637 n.a. n.a. 21 Sales 39,780 73,446 73,817'' 4,808 5,707 5,734 6,314' 9,918' 4,507 4,465 Mortgage commitments10 22 Contracted (during period) 66,026 88,519 102,401 5,646 6,643 10,972 10,164 12,938 n.a. n.a. 1. Weighted averages based on sample surveys of mortgages originated by ciation guaranteed, mortgage-backed, fully modified pass-through securities, major institutional lender groups; compiled by the Federal Home Loan Bank assuming prepayment in 12 years on pools of 30-year FHA/VA mortgages Board in cooperation with the Federal Deposit Insurance Corporation. carrying the prevailing ceiling rate. Monthly figures are averages of Friday figures 2. Includes all fees, commissions, discounts, and "points" paid (by the from the Wall Street Journal. borrower or the seller) to obtain a loan. 1. 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 1990 Type of holder, and type of property Q4 Q1 Q2 Q3' 1 All holders 3,265,352' 3,552,716' 3,858,580 3,552,716' 3,693,622' 3,757,289' 3,813,083 2 1- to 4-family 2,184,449' 2,408,575' 2,690,678 2,408,575' 2,530,708' 2,593,951' 2,643,112 3 Multifamily 290,651' 302,537' 300,173 302,537' 304,758' 300,644' 301,756 4 Commercial 704,970' 757,538' 783,498 757,538' 774,253' 778,694' 783,916 5 Farm 85,282' 84,066' 84,231 84,066' 83,903' 84,000' 84,299 6 Selected financial institutions 1,826,706' 1,927,883' 1,918,662 1,927,883' 1,935,745' 1,937,175' 1,930,841 7 Commercial banks 669,237 763,415 841,814 763,415 783,542' 811,407' 828,178 8 1- to 4-family 317,585 368,518 427,740 368,518 381,221' 405,545' 418,225 9 Multifamily 33,158 37,996 36,180 37,996 36,833' 37,274' 36,737 10 Commercial 302,989 340,204 360,243 340,204 348,676' 351,412' 355,843 11 Farm 15,505 16,697 17,651 16,697 16,812' 17,176' 17,373 12 Savings institutions3 924,606 910,254 809,829 910,254 891,921 860,903' 836,600 13 1- to 4-family 671,722 669,220 610,809 669,220 658,405 642,110' 626,789 14 Multifamily 110,775 106,014 91,789 106,014 103,841 97,359' 94,714 15 Commercial 141,433 134,370 106,708 134,370 129,056 120,866' 114,567 16 Farm 676 650 524 650 619 568' 530 17 Life insurance companies 232,863' 254,214' 267,018 254,214' 260,282' 264,865' 266,063 18 1- to 4-family 11,164' 12,231' 12,837 12,231' 12,525' 12,740' 12,773 2 2 2 1 0 1 2 9 Fin C F M a a o u n r m l c m t e m i fa e c m r o c m i i l a y p l a nies . 1 2 3 8 9 7 4 7 , , , , 8 5 5 5 4 9 4 6 6 0 9 c ' ' 2 4 2 0 9 5 6 5 , , , , 4 6 9 4 7 0 0 7 6 7 4 2 ' ' ' 2 4 2 1 1 8 8 5 0 , , , , 1 1 7 8 2 7 7 9 1 1 7 0 2 4 2 0 5 9 6 5 , , , , 4 6 9 4 7 0 0 7 6 4 7 2 ' ' ' 2 4 2 1 5 9 7 0 , , , , 8 7 5 4 0 5 8 2 8 5 0 2 ' ' ' 2 4 2 1 1 7 8 4 0 , , , , 1 0 0 0 0 2 2 7 4 7 4 5 ' ' ' 2 2 4 1 1 8 9 4 0 , , , , 5 7 1 6 8 8 0 0 5 4 5 0 23 Federal and related agencies 200,570 209,498 247,693 209,498 216,146 227,818' 242,695 24 Government National Mortgage Association.. 26 23 21 23 22 21 21 25 1- to 4-family 2 0 6 23 0 2 0 1 2 0 3 2 0 2 21 0 2 0 1 26 Multifamily 27 Farmers Home Administration 42,018 41,176 41.324 41,176 41,125 41,175 41,269 28 1- to 4-family 18,347 18,422 18,494 18,422 18,419 18,434 18,476 29 Multifamily 8,513 9,054 9,623 9,054 9,199 9,361 9,477 30 Commercial 5,343 4,443 4,671 4,443 4,510 4,545 4,608 31 Farm 9,815 9,257 8,536 9,257 8,997 8,835 32 Federal Housing and Veterans Administration 5,973 6,087 8,570 6,087 6,355 6,792 7,938 33 1- to 4-family 2,672 2,875 3,362 2,875 3,027 3,054 3,248 34 Multifamily 3,301 3,212 5,208 3,212 3,328 3,738 4,690 35 Federal National Mortgage Association 103,013 110,721 115,508 110,721 112,353 112,855 113,718 36 1- to 4-family 95,833 102,295 104,900 102,295 103,300 103,431 103,722 37 Multifamily 7,180 8,426 10,608 8,426 9,053 9,424 9,996 4 4 4 3 3 4 0 2 3 8 9 1 F F e e F M d 1 1 d - - a e e u r r r t t l o o m a a t l l i 4 4 f L a H - - f f m a a o a n i m m m l d y i e i l l B y y L a o n a k n s Mortgage Corporation .. 3 3 1 1 2 0 2 5 7 1 , , , , , , 2 3 1 0 4 8 2 4 1 7 2 9 5 8 5 7 5 0 2 2 2 1 1 9 8 3 1 8 , , , , , , 8 6 6 4 2 2 0 5 4 3 4 1 3 1 0 0 8 0 2 2 2 1 2 9 7 0 7 1 , , . , , , 6 1 3 5 8 8 5 4 2 2 7 2 5 5 5 5 0 0 2 2 2 1 8 9 3 1 8 1 , , , , , , 6 4 8 6 2 2 0 5 3 4 4 1 3 1 0 0 8 0 2 2 1 1 8 9 3 6 1 9 , , , , , , 3 0 1 7 1 8 5 2 2 9 7 2 8 1 5 7 2 3 2 2 1 1 9 7 2 7 1 9 , , , , , , 5 6 8 7 3 9 9 6 5 4 1 7 5 3 4 1 6 9 2 2 2 1 9 7 2 0 1 7 , , , , , , 4 6 6 5 7 8 4 9 7 0 6 1 1 7 5 8 6 0 44 Mortgage pools or trusts6 811,847' 946,766' 1,101,589 946,766' 984,811' 1,024,893' 1,060,640 45 Government National Mortgage Association.. 340,527 368,367 404,076 368,367 376,962 385,456 394,859 4 4 4 4 5 5 5 5 5 5 7 8 6 9 0 1 2 3 4 5 F F F e a e M d M M 1 1 d 1 1 r - - m e - - e u u u r r t t t t e l a o o o o l l a t t t r l l i i i s 4 f 4 4 4 f f H a N a a - - - - H m f f f f m m o a a a a a o t m i m m m i i m l i l l m y y y o e i i i i n l l l l e y y y y L a A l o d a M n m o i M r n t i g o s a t r r g t a g e t a i A g o e n s s C oc o i r a p t o io r n at ion .. 2 2 3 1 1 2 1 3 7 7 9 6 6 5 9 1 2 8 , , , , , , , , 4 2 9 4 2 9 3 2 1 0 7 3 8 5 1 1 5 2 0 6 0 1 8 7 8 9 0 0 6 4 2 3 2 2 2 7 1 5 2 6 1 2 9 6 8 8 8 6 0 , , , , , , , , 8 6 5 1 2 0 2 8 5 7 7 4 3 2 6 1 8 2 5 7 0 2 2 5 0 0 0 1 0 3 3 3 2 3 0 9 9 0 0 1 9 5 8 8 3 3 1 0 , , , , , , , , 4 4 4 6 0 8 4 4 8 3 4 5 8 3 5 1 6 1 6 8 2 6 0 6 0 9 8 0 7 2 3 2 2 2 7 1 5 2 6 1 2 9 6 8 8 8 6 0 , , , , , , , , 8 5 6 1 2 8 0 2 7 7 5 4 3 2 6 1 8 2 7 0 5 2 2 5 0 0 0 1 0 2 3 2 2 2 8 4 7 3 6 1 1 6 7 8 4 7 6 0 , , , , , , , , 7 3 0 4 6 9 3 6 9 3 8 7 5 6 1 0 7 2 1 6 4 5 2 2 6 0 6 0 0 2 2 2 2 3 9 5 8 6 7 1 5 4 8 8 7 3 4 0 , , , , , , , , 8 3 2 1 3 5 9 4 1 4 3 0 3 9 6 1 7 1 1 0 2 8 0 6 0 9 2 0 9 3 2 2 2 3 9 8 0 7 8 1 3 1 1 8 3 8 4 0 , , , , , , , , 7 7 3 0 4 4 3 8 2 9 3 7 7 8 7 0 7 1 1 7 5 1 7 5 4 6 0 0 8 5 5 5 7 6 8 C M Fa o u r m l m t m i fa e m rc i i l a y l 3 4 8 0 2 3 6 3 2 2 4 7 2 3 6 3 2 3 5 1 2 3 4 0 2 2 4 9 59 Individuals and others7 426,229' 468,569' 590,637 468,569' 556,92C 567,403' 578,908 60 1- to 4-family 259,971' 294,517' 402,385 294,517' 374,143' 382,343' 393,027 61 Multifamily 79,209' 81,634' 80,978 81,634' 83,666' 82,040' 80,636 62 Commercial 67,618' 73,023' 87,995 73,023' 79,576' 83,557' 85,865 63 Farm 19,431' 19,395' 19,278 19,395' 19,536' 19,463' 19,379 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 • May 1991 1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change, seasonally adjusted Millions of dollars, amounts outstanding, end of period 1990 1991 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 11998899 11999900rr May June July Aug. Sept. Oct. Nov. Dec/ Jan. Seasonally adjusted 1 Total 716,624 739,014 724,485 724,601 729,329 732,385 735,222 736,595 739,357 739,014 736,572 2 Automobile 290,770 285,336 288,931 287,168 286,791 285,283 285,261 284,402 284,483 285,336 283,383 3 Revolving 197,110 218,235 207,153 208,362 212,138 214,492 216,804 218,381 219,757 218,235 219,502 4 Mobile home 22,343 21,816 22,815 22,733 22,795 22,976 22,672 22,491 22,518 21,816 22,684 5 Other 206,401 213,628 205,585 206,338 207,605 209,635 210,484 211,320 212,599 213,628 211,002 Not seasonally adjusted 6 Total 727,561 750,941 720,045 722,953 727,196 734,511 737,260 737,252 740,346 750,941 740,420 By major holder 7 Commercial banks 343,865 351,695 339,328 335,998 339,124 342,987 344,941 344,875 346,128 351,695 345,070 8 Finance companies 140,832 136,154 138,384 138,642 138,7% 139,4% 140,890 141,329 139,195 136,154 134,739 9 Credit unions 90,875 91,203 89,913 90,137 90,631 91,306 91,311 91,406 91,174 91,203 90,287 10 Retailers2 42,638 42,111 37,347 37,382 36,804 37,231 36,682 36,047 37,470 42,111 39,828 11 Savings institutions 57,228 49,594 53,301 52,902 52,503 52,399 51,358 50,787 50,310 49,594 49,117 12 Gasoline companies 3,935 4,747 4,024 4,192 4,3% 4,722 4,723 4,718 4,701 4,747 4,748 13 Pools of securitized assets2 .. 48,188 75,437 57,748 63,700 64,942 66,370 67,355 68,090 71,368 75,437 76,631 By mqjor type of credit3 14 Automobile 290,421 284,908 287,140 287,254 287,479 288,221 289,255 287,730 285,877 284,908 281,541 15 Commercial banks 126,613 126,117 127,056 126,988 126,986 128,079 128,937 128,133 127,039 126,117 124,486 1 1 6 7 P F o in o a ls n c o e f c se o c m u p ri a t n iz i e e d s assets2 8 1 2 8 , , 7 1 2 9 1 1 7 2 4 4 , , 3 1 9 9 7 8 7 20 8 , , 1 9 5 2 1 7 7 2 8 1 , , 2 0 7 4 3 3 7 2 7 1 , , 7 6 1 9 6 2 7 2 7 1 , , 2 5 0 6 5 2 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 7 2 4 4 , , 3 1 9 9 7 8 7 2 2 5 , , 0 5 1 1 5 3 18 Revolving 208,188 230,456 204,854 206,820 209,582 213,119 214,853 216,285 219,713 230,456 224,046 19 Commercial banks 130,956 133,295 125,433 122,116 124,569 125,967 126,995 127,950 129,111 133,295 128,817 20 Retailers 37,967 37,535 32,857 32,884 32,325 32,735 32,212 31,601 32,993 37,535 35,330 21 Gasoline companies 3,935 4,747 4,024 4,192 4,3% 4,722 4,723 4,718 4,701 4,747 4,748 22 Pools of securitized assets2 22,977 43,887 30,913 36,076 36,786 38,194 39,606 40,798 41,797 43,887 44,302 23 Mobile home 22,283 21,757 22,610 22,644 22,873 23,033 22,815 22,720 22,646 21,757 22,818 24 Commercial banks 9,155 9,934 9,295 9,2% 9,443 9,541 9,3% 9,363 9,351 9,934 9,838 25 Finance companies 4,716 3,956 5,224 5,266 5,328 5,358 5,423 5,400 5,364 3,956 5,141 26 Other 206,669 213,820 205,441 206,235 207,252 210,138 210,337 210,517 212,110 213,820 212,015 27 Commercial banks 77,141 82,349 77,544 77,598 78,126 79,400 79,613 79,429 80,627 82,349 81,929 28 Finance companies 53,395 57,801 54,233 55,103 55,752 56,933 57,351 57,8% 58,607 57,801 57,583 29 Retailers 4,671 4,576 4,490 4,498 4,479 4,4% 4,470 4,446 4,477 4,576 4,498 30 Pools of securitized assets2 7,020 7,352 6,684 6,581 6,464 6,614 6,510 6,506 6,412 7,352 6,816 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 1991 IItteemm 11998888 11998899 11999900 July Aug. Sept. Oct. Nov. Dec. Jan. INTEREST RATES Commercial banks2 1 48-month new car 10.85 12.07 11.78 n.a. 11.89 n.a. n.a. 11.62 n.a. n.a. 2 24-month personal 14.68 15.44 15.46 n.a. 15.46 n.a. n.a. 15.69 n.a. n.a. 3 120-month mobile home 13.54 14.11 14.02 n.a. 14.09 n.a. n.a. 13.99 n.a. n.a. 4 Credit card 17.78 18.02 18.17 n.a. 18.18 n.a. n.a. 18.23 n.a. n.a. Auto finance companies 5 New car 12.60 12.62 12.54 12.68 12.62 12.34 12.57 12.74 12.86 12.99 6 Used car 15.11 16.18 15.99 15.96 15.98 16.03 16.12 16.07 16.04 15.70 OTHER TERMS4 Maturity (months) 7 New car 56.2 54.2 54.6 54.9 54.8 54.3 54.6 54.6 54.7 54.9 8 Used car 46.7 46.6 46.1 46.2 46.2 46.1 46.1 46.0 45.8 47.4 Loan-to-value ratio 9 New car 94 91 87 86 86 85 85 85 85 88 10 Used car 98 97 95 96 96 95 95 95 94 96 Amount financed (dollars) 11 New car 11,663 12,001 12,071 12,125 11,939 11,837 11,917 11,986 12,140 12,229 12 Used car 7,824 7,954 8,289 8,401 8,415 8,403 8,423 8,494 8,530 8,600 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 • May 1991 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1989 1990 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11998866 11998877 11998888 11998899 11999900 Q2 Q3 Q4 Qlr Q2' Q3' Q4 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors.. 836.9 687.0 760.8 678.2 662.1 666.8 678.8 620.2 788.6 611.8 687.2 561.0 By sector and instrument 2 U.S. government 215.0 144.9 157.5 151.6 272.5 100.1 173.9 185.0 247.3 228.2 286.1 328.4 3 Treasury securities 214.7 143.4 140.0 150.0 264.4 95.0 166.8 189.6 217.8 222.9 287.5 329.4 4 Agency issues and mortgages .4 1.5 17.4 1.6 8.2 5.1 7.1 -4.6 29.6 5.4 -1.3 -1.0 5 Private domestic nonfinancial sectors 621.9 542.1 603.3 526.6 389.6 566.7 504.9 435.2 541.3 383.6 401.0 232.6 6 Debt capital instruments 465.8 453.2 459.2 379.8 309.6 390.1 369.2 347.0 393.7 318.9 282.8 243.0 7 Tax-exempt obligations 22.7 49.3 49.8 30.4 19.4 28.7 34.1 19.1 13.0 24.7 29.8 10.1 8 Corporate bonds 126.8 79.4 102.9 73.7 61.5 86.5 62.7 87.4 45.2 75.2 46.0 79.6 9 Mortgages 316.3 324.5 306.5 275.7 228.7 275.0 272.4 240.5 335.6 218.9 207.0 153.3 10 Home mortgages 218.7 234.9 231.0 218.0 214.4 211.3 221.0 214.3 272.8 228.2 179.3 177.4 11 Multifamily residential 33.5 24.4 16.7 16.4 -.7 21.4 11.8 9.5 22.1 -18.2 3.1 -9.7 12 Commercial 73.6 71.6 60.8 42.7 14.8 41.5 40.9 19.9 40.1 10.9 22.7 -14.6 13 Farm -9.5 -6.4 -2.1 -1.5 .2 .9 -1.3 -3.2 .5 -1.9 1.9 .2 14 Other debt instruments 156.1 88.9 144.1 146.8 80.0 176.5 135.6 88.2 147.6 64.7 118.2 -10.4 15 Consumer credit 58.0 33.5 50.2 39.1 18.4 36.9 37.1 44.1 14.9 10.5 26.6 21.6 16 Bank loans n.e.c 66.9 10.0 39.8 39.9 -3.0 45.1 50.8 7.7 18.7 6.5 5.6 -43.0 17 Open market paper -9.3 2.3 11.9 20.4 9.7 39.5 16.9 -6.9 69.6 -6.2 17.3 -41.7 18 Other 40.5 43.2 42.2 47.4 54.9 55.0 30.9 43.3 44.3 53.9 68.7 52.6 19 By borrowing sector 621.9 542.1 603.3 526.6 389.6 566.7 504.9 435.2 541.3 383.6 401.0 232.6 20 State and local governments 36.2 48.8 45.6 29.6 14.6 33.3 28.6 16.5 8.9 17.7 28.7 3.1 21 Households 293.0 302.2 314.9 285.0 260.1 264.0 290.8 291.8 335.0 269.7 246.8 189.0 22 Nonfinancial business 292.7 191.0 242.8 211.9 114.9 269.4 185.4 126.9 197.4 96.2 125.6 40.4 23 Farm -16.3 -10.6 -7.5 1.6 3.0 -5.0 -2.1 8.9 6.3 -4.8 5.2 5.1 24 Nonfarm noncorporate 99.2 77.9 65.7 50.8 14.3 56.9 40.2 35.0 44.4 5.2 22.3 -14.5 25 Corporate 209.7 123.7 184.6 159.5 97.6 217.4 147.3 83.1 146.8 95.8 98.1 49.8 26 Foreign net borrowing in United States 9.7 4.5 6.3 10.9 23.3 -6.9 30.4 16.9 -3.5 42.5 32.9 21.2 27 Bonds 3.1 7.4 6.9 5.3 21.1 11.5 8.1 -1.0 28.1 27.4 3.2 25.7 28 Bank loans n.e.c -1.0 -3.6 -1.8 -.1 -2.8 -3.2 3.7 -4.3 -6.7 -2.0 1.9 -4.3 29 Open market paper 11.5 2.1 8.7 13.3 12.3 -6.6 20.7 22.2 -16.4 23.1 27.3 15.3 30 U.S. government loans -3.9 -1.4 -7.5 -7.5 -7.4 -8.7 -2.1 .1 -8.5 -6.1 .5 -15.5 31 Total domestic plus foreign 846.6 691.5 767.1 689.1 685.4 659.9 709.2 637.1 785.1 654.3 720.1 582.2 Financial sectors 32 Total net borrowing by financial sectors 285.1 300.2 247.6 205.5 199.4 154.1 123.9 187.3 198.6 172.6 170.9 255.4 By instrument 33 U.S. government related 154.1 171.8 119.8 151.0 170.6 128.8 124.8 156.4 176.2 183.8 137.5 184.8 34 Sponsored credit agency securities 15.2 30.2 44.9 25.2 22.6 22.5 13.2 -4.7 14.3 17.0 20.6 38.8 35 Mortgage pool securities 139.2 142.3 74.9 125.8 148.0 106.3 111.6 161.1 162.0 166.8 116.9 146.1 36 Loans from U.S. government -.4 -.8 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 37 Private financial sectors 131.0 128.4 127.8 54.5 28.8 25.3 -.9 30.9 22.3 -11.3 33.5 70.5 38 Corporate bonds 82.9 78.9 51.7 36.8 44.1 28.5 26.7 39.6 37.7 64.0 22.3 52.4 39 Mortgages .1 .4 .3 .0 .7 .0 .3 -.4 -.7 .8 2.6 .0 40 Bank loans n.e.c 4.0 -3.2 1.4 1.8 .7 -.1 2.0 4.2 -2.2 -.6 1.9 3.8 41 Open market paper 24.2 27.9 54.8 26.9 8.0 10.1 11.0 36.3 9.5 -44.6 37.2 29.8 42 Loans from Federal Home Loan Banks 19.8 24.4 19.7 -11.0 -24.7 -13.1 -41.0 -48.8 -22.0 -30.9 -30.5 -15.5 By sector 43 285.1 300.2 247.6 205.5 199.4 154.1 123.9 187.3 198.6 172.6 170.9 255.4 44 Sponsored credit agencies 14.9 29.5 44.9 25.2 22.6 22.5 13.2 -4.7 14.3 17.0 20.6 38.8 45 Mortgage pools 139.2 142.3 74.9 125.8 148.0 106.3 111.6 161.1 162.0 166.8 116.9 146.1 46 Private financial sectors 131.0 128.4 127.8 54.5 28.8 25.3 -.9 30.9 22.3 -11.3 33.5 70.5 47 Commercial banks -3.6 6.2 -3.0 -1.4 -1.1 2.5 3.5 -.7 -4.9 -7.9 -12.5 21.0 48 Bank affiliates 15.2 14.3 5.2 6.2 -27.7 2.9 16.5 -3.9 -10.0 -32.2 -40.2 -28.5 49 Savings and loan associations 20.9 19.6 19.9 -14.1 -32.4 -16.3 -44.7 -56.2 -15.8 -53.5 -36.5 -24.0 50 Mutual savings banks 4.2 8.1 1.9 -1.4 -.1 .0 -2.3 .7 -8.3 6.5 .3 1.1 51 Finance companies 54.7 40.8 67.7 46.3 50.9 40.4 23.5 52.6 27.1 27.5 91.3 57.8 52 REITs .8 .3 3.5 -1.9 -.3 -2.8 -3.1 .1 -.5 -2.0 1.3 -.1 53 SCO Issuers 39.0 39.1 32.5 20.8 39.5 -1.4 5.7 38.2 34.7 50.3 29.7 43.3 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 11998866 11998877 11998888 11998899 11999900 Q2 Q3 Q4 Qlr Q2' Q3r Q4 All sectors 54 Total net borrowing 1,131.7 991.7 1,014.7 894.5 884.8 814.0 833.0 824.4 983.7 826.8 891.0 837.5 55 U.S. government securities 369.5 317.5 277.2 302.6 443.1 228.9 298.7 341.4 423.6 412.1 423.6 513.3 56 State and local obligations 22.7 49.3 49.8 30.4 19.4 28.7 34.1 19.1 13.0 24.7 29.8 10.1 57 Corporate and foreign bonds 212.8 165.7 161.5 115.8 126.7 126.5 97.6 125.9 111.0 166.6 71.4 157.7 58 Mortgages 316.4 324.9 306.7 275.7 229.4 275.0 272.7 240.1 334.9 219.7 209.5 153.4 59 Consumer credit 58.0 33.5 50.2 39.1 18.4 36.9 37.1 44.1 14.9 10.5 26.6 21.6 60 Bank loans n.e.c 69.9 3.2 39.4 41.5 -5.1 41.9 56.5 7.5 9.8 4.0 9.4 -43.5 61 Open market paper 26.4 32.3 75.4 60.6 30.0 42.9 48.5 51.6 62.6 -27.7 81.9 3.3 62 Other loans 56.1 65.5 54.4 28.9 22.8 33.2 -12.2 -5.4 13.9 17.0 38.8 21.6 63 MEMO: U.S. government, cash balance .0 -7.9 10.4 -5.9 8.6 20.7 -22.7 -7.3 22.9 -38.1 21.1 28.3 Totals net of changes in U.S. government cash balances 64 Net borrowing by domestic nonfinancial 836.9 694.9 750.4 684.1 653.6 646.1 701.6 627.6 765.7 649.9 666.1 532.6 65 Net borrowing by U.S. government 215.0 152.8 147.1 157.5 264.0 79.4 196.7 192.4 224.4 266.3 265.1 300.1 External corporate equity funds raised in United States 66 Total net share issues 86.8 10.9 -124.2 -63.7 17.2 -43.0 -61.0 14.9 -4.7 51.3 -9.6 31.7 67 Mutual funds 159.0 73.9 1.1 41.3 66.9 34.0 57.9 72.4 53.1 76.5 51.7 86.2 68 All other -72.2 -63.0 -125.3 -105.1 -49.7 -77.0 -118.9 -57.6 -57.8 -25.2 -61.3 -54.4 69 Nonfinancial corporations -75.5 -129.5 -124.2 -63.0 -98.7 -146.3 -79.3 -69.0 -48.0 -74.0 -61.0 70 Financial corporations 11.6 14.6 3.3 2.4 6.1 4.3 -.1 4.5 10.0 .3 12.6 1.5 71 Foreign shares purchased in United States 1.2 -2.1 .9 16.7 7.2 17.4 27.5 17.2 1.3 22.5 .1 5.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • May 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 11998866 11998877 11998888 11998899 11999900 Q2 Q3 Q4 Ql' Q2' Q3r Q4 1 Total funds advanced in credit markets to domestic nonfinancial sectors 836.9 687.0 760.8 678.2 662.1 666.8 678.8 620.2 788.6 611.8 687.2 561.0 By public agencies and foreign 2 Total net advances 280.2 248.8 210.7 187.6 278.7 15.5 218.3 203.8 234.4 314.3 316.1 249.9 3 U.S. government securities 69.4 70.1 85.2 30.7 79.9 -103.3 115.7 27.1 17.3 97.1 134.9 70.2 4 Residential mortgages 136.3 139.1 86.3 137.9 179.0 119.7 127.7 178.3 182.2 206.7 160.8 166.3 5 FHLB advances to thrifts 19.8 24.4 19.7 -11.0 -24.7 -13.1 -41.0 -48.8 -22.0 -30.9 -30.5 -15.5 6 Other loans and securities 54.7 15.1 19.4 30.0 44.5 12.1 15.8 47.1 56.8 41.3 50.9 28.9 Total advanced, by sector 7 U.S. government 9.7 -7.9 -9.4 -2.4 34.0 -6.0 -9.3 5.7 33.5 41.3 59.1 2.0 8 Sponsored credit agencies 153.3 169.3 112.0 125.3 170.1 28.0 126.4 158.4 184.2 166.3 155.6 174.4 9 Monetary authorities 19.4 24.7 10.5 -7.3 8.1 -1.6 -31.2 -4.6 -6.3 40.4 24.4 -25.9 10 Foreign 97.8 62.7 97.6 72.1 66.4 -4.9 132.4 44.2 22.9 66.4 77.0 99.4 Agency and foreign borrowing not in line 1 11 Sponsored credit agencies and mortgage pools 154.1 171.8 119.8 151.0 170.6 128.8 124.8 156.4 176.2 183.8 137.5 184.8 12 Foreign 9.7 4.5 6.3 10.9 23.3 -6.9 30.4 16.9 -3.5 42.5 32.9 21.2 Private domestic funds advanced 13 Total net advances 720.5 614.5 676.2 652.5 577.3 773.3 615.7 589.7 727.0 523.8 541.5 517.1 14 U.S. government securities 300.1 247.4 192.1 271.9 363.2 332.2 183.0 314.3 406.2 314.9 288.8 443.0 15 State and local obligations 22.7 49.3 49.8 30.4 19.4 28.7 34.1 19.1 13.0 24.7 29.8 10.1 16 Corporate and foreign bonds 89.7 66.9 91.3 66.1 67.7 91.1 65.6 70.6 57.0 81.7 47.2 84.8 17 Residential mortgages 115.9 120.2 161.3 96.5 34.8 113.0 105.1 45.5 112.7 3.3 21.6 1.5 18 Other mortgages and loans 212.0 155.2 201.4 176.6 67.6 195.2 186.9 91.5 116.1 68.3 123.6 -37.7 19 LESS: Federal Home Loan Bank advances 19.8 24.4 19.7 -11.0 -24.7 -13.1 -41.0 -48.8 -22.0 -30.9 -30.5 -15.5 Private financial intermediation 20 Credit market funds advanced by private financial institutions 730.0 528.4 562.3 511.1 394.1 600.9 345.9 623.4 379.9 275.8 404.8 515.8 21 Commercial banking 198.1 135.4 156.3 177.3 119.9 160.9 183.7 184.3 188.1 126.1 104.6 60.7 22 Savings institutions 107.6 136.8 120.4 -90.9 -141.0 -42.3 -135.8 -201.9 -56.6 -210.3 -167.4 -129.6 23 Insurance and pension funds 160.1 179.7 198.7 177.9 226.1 188.1 136.1 205.1 168.8 238.9 231.0 265.5 24 Other finance 264.2 76.6 86.9 246.8 189.1 294.2 161.9 436.0 79.5 121.1 236.6 319.2 25 Sources of funds 730.0 528.4 562.3 511.1 394.1 600.9 345.9 623.4 379.9 275.8 404.8 515.8 26 Private domestic deposits and RPs 277.1 162.8 229.2 225.2 72.8 267.4 284.4 208.0 113.0 36.7 91.8 49.6 27 Credit market borrowing 131.0 128.4 127.8 54.5 28.8 25.3 -.9 30.9 22.3 -11.3 33.5 70.5 28 Other sources 321.8 237.1 205.3 231.4 292.5 308.2 62.3 384.6 244.6 250.3 279.6 395.6 29 Foreign funds 12.9 43.7 9.3 -9.9 46.5 -35.4 30.4 -20.6 46.4 13.4 122.2 4.2 30 Treasury balances 1.7 -5.8 7.3 -3.4 5.3 13.9 -19.9 5.0 13.1 -13.4 18.2 3.4 31 Insurance and pension reserves 119.9 135.4 177.6 140.5 209.2 123.2 82.6 193.9 144.8 219.2 219.8 252.8 32 Other, net 187.3 63.9 11.0 104.2 31.5 206.4 -30.8 206.3 40.3 31.1 -80.7 135.2 Private domestic nonfinancial investors 33 Direct lending in credit markets 121.5 214.6 241.7 195.9 212.0 197.7 268.9 -2.8 369.3 236.8 170.1 71.9 34 U.S. government securities 27.0 86.0 129.0 134.3 198.4 136.2 196.8 4.3 250.7 186.2 178.1 178.5 35 State and local obligations -19.9 61.8 53.5 28.4 -1.3 5.1 39.0 12.8 .4 13.0 16.0 -34.3 36 Corporate and foreign bonds 52.9 23.3 -9.4 .7 -26.6 9.4 -4.7 14.6 38.0 -27.2 -82.4 -34.8 37 Open market paper 9.9 15.8 36.4 5.4 15.9 17.8 21.4 -64.6 45.3 39.8 13.7 -35.3 38 Other 51.7 27.6 32.2 27.1 25.6 29.2 16.4 30.1 34.9 24.9 44.8 -2.1 39 Deposits and currency 297.5 179.3 232.8 241.3 100.1 290.6 261.8 230.6 138.0 60.3 137.8 64.3 40 Currency 14.4 19.0 14.7 11.7 22.6 12.8 6.0 10.1 26.1 23.1 32.2 9.1 41 Checkable deposits 96.4 -.9 12.9 1.5 -1.0 -41.7 14.7 65.8 -11.0 -4.2 16.9 -5.6 42 Small time and savings accounts 120.6 76.0 122.4 100.5 67.5 99.0 163.1 109.1 111.3 29.3 63.0 66.6 43 Money market fund shares 43.2 28.9 20.2 85.2 62.4 119.2 116.7 65.6 72.2 4.7 110.9 62.0 44 Large time deposits -3.2 37.2 40.8 23.1 -45.8 61.1 -23.8 -13.4 -24.6 -15.4 -78.8 -64.2 45 Security RPs 20.2 21.6 32.9 14.9 -10.5 29.8 13.7 -19.2 -34.9 22.3 -20.2 -9.1 46 Deposits in foreign countries 5.9 -2.5 -11.2 4.4 4.7 10.4 -28.6 12.4 -1.1 .6 13.9 5.6 47 Total of credit market instruments, deposits, and currency 419.0 393.9 474.5 437.2 312.1 488.3 530.7 227.7 507.3 297.1 307.9 136.2 48 Public holdings as percent of total 33.1 36.0 27.5 27.2 40.7 2.3 30.8 32.0 29.9 48.0 43.9 42.9 49 Private financial intermediation (in percent) 101.3 86.0 83.2 78.3 68.3 77.7 56.2 105.7 52.3 52.7 74.8 99.7 50 Total foreign funds 110.7 106.4 106.9 62.2 113.0 -40.3 162.8 23.6 69.3 79.8 199.2 103.6 MEMO: Corporate equities not included above 51 Total net issues 86.8 10.9 -124.2 -63.7 17.2 -43.0 -61.0 14.9 -4.7 51.3 -9.6 31.7 52 Mutual fund shares 159.0 73.9 1.1 41.3 66.9 34.0 57.9 72.4 53.1 76.5 51.7 86.2 53 Other equities -72.2 -63.0 -125.3 -105.1 -49.7 -77.0 -118.9 -57.6 -57.8 -25.2 -61.3 -54.4 54 Acquisitions by financial institutions 50.9 32.0 -2.9 17.2 30.1 -14.1 6.1 76.9 42.1 72.1 -36.5 42.8 55 Other net purchases 35.9 -21.2 -121.4 -80.9 -12.9 -28.9 -67.1 -62.1 -46.8 -20.8 26.9 -11.0 NOTES BY LINE NUMBER. 31. Excludes net investment of these reserves in corporate equities. 1. Line 1 of table 1.57. 32. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 7-10. 33. Line 13 less line 20 plus line 27. 6. Includes farm and commercial mortgages. 34-38. Lines 14-18 less amounts acquired by private finance plus amounts 11. Credit market funds raised by federally sponsored credit agencies, and net borrowed by private finance. Line 38 includes mortgages. issues of federally related mortgage pool securities. 40. Mainly an offset to line 9. 13. Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33. 47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46. Also sum of lines 28 and 47 less lines 40 and 46. 48. Line 2/line 1. 18. Includes farm and commercial mortgages. 49. Line 20/line 13. 26. Line 39 less lines 40 and 46. 50. Sum of lines 10 and 29. 27. Excludes equity issues and investment company shares. Includes line 19. 51. 53. Includes issues by financial institutions. 29. Foreign deposits at commercial banks, bank borrowings from foreign NOTE. Full statements for sectors and transaction types in flows and in amounts branches, and liabilities of foreign banking agencies to foreign affiliates, less outstanding may be obtained from Flow of Funds Section, Division of Research claims on foreign affiliates and deposits by banking in foreign banks. and Statistics, Board of Governors of the Federal Reserve System, Washington, 30. Demand deposits and note balances at commercial banks. D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A43 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING Billions of dollars; period-end levels. 1989 1990 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11998866 11998877 1988 11998899 Q2 Q3 Q4 Ql Q2' Q3' Q4 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 7,646.3 8,343.9 9,096.0 9,805.2 9,438.7 9,605.1 9,805.2 10,069.4' 10,226.6 10,394.1 10,579.9 By sector and instrument 2 U.S. government 1,815.4 1,960.3 2,117.8 2,269.4 2,165.7 2,206.1 2,269.4 2,360.9 2.401.7 2,470.2 2,568.9 3 Treasury securities 1,811.7 1,955.2 2,095.2 2,245.2 2,142.1 2,180.7 2,245.2 2,329.3 2.368.8 2,437.6 2,536.5 4 Agency issues and mortgages 3.6 5.2 22.6 24.2 23.6 25.4 24.2 31.6 32.9 32.6 32.4 5 Private domestic nonfinancial sectors 5,831.0 6.383.6 6,978.2 7,535.8 7,273.0 7,399.0 7,535.8 7,708.6' 7,824.9 7,923.9 8,011.0 6 Debt capital instruments 3.962.7 4,427.9 4,886.4 5,283.3 5,091.4 5,189.9 5,283.3 5,449.4' 5.533.8 5,610.6 5,678.2 7 Tax-exempt obligations 679.1 728.4 790.8 821.2 804.9 816.4 821.2 822.4 827.4 838.0 840.6 8 Corporate bonds 669.4 748.8 851.7 925.4 887.9 903.5 925.4 936.7' 955.5 %7.0 986.9 9 Mortgages 2,614.2 2.950.7 3.243.8 3,536.6 3,398.6 3,470.0 3,536.6 3,690.4' 3.750.9 3,805.6 3,850.7 10 Home mortgages 1.720.8 1,943.1 2.173.9 2,404.3 2,287.6 2,347.6 2,404.3 2,530.7' 2,594.0 2,643.1 2,690.7 11 Multifamily residential 246.2 270.0 286.7 304.4 298.3 301.2 304.4 303.7' 298.9 299.8 298.1 12 Commercial 551.4 648.7 696,4 742.6 725.9 734.9 742.6 772.1' 773.9 778.4 777.7 13 Farm 95.8 88.9 86.8 85.3 86.8 86.3 85.3 83.9' 84.0 84.3 84.2 14 Other debt instruments 1,868.2 1,955.7 2,091.9 2,252.6 2,181.6 2,209.1 2,252.6 2,259.1' 2,291.2 2,313.3 2,332.8 15 Consumer credit 659.8 693.2 743.5 790.6 756.7 771.0 790.6 774.3 783.3 793.9 809.0 16 Bank loans n.e.c 666.0 673.3 713.1 763.0 740.3 750.7 763.0 756.2' 761.6 761.1 760.2 17 Open market paper 62.9 73.8 85.7 107.1 110.1 113.3 107.1 126.0 128.7 131.8 116.9 18 Other 479.6 515.3 549.6 591.9 574.5 574.1 591.9 602.6 617.6 626.5 646.8 19 By borrowing sector 5,831.0 6,383.6 6,978.2 7,535.8 7,273.0 7,399.0 7,535.8 7,708.6' 7,824.9 7,923.9 8,011.0 20 State and local governments 510.1 558.9 604.5 634.1 619.9 629.9 634.1 634.3 637.6 647.9 648.8 21 Households 2,5%. 1 2,879.1 3,191.5 3.501.8 3,330.7 3.411.4 3.501.8 3,625.0' 3,699.7 3,768.4 3.834.1 22 Nonfinancial business 2,724.8 2,945.6 3,182.2 3,400.0 3.322.5 3,357.6 3,400.0 3,449.3' 3,487.6 3,507.6 3.528.2 23 Farm 156.6 145.5 137.6 139.2 139.5 139.2 139.2 137.4' 140.2 141.5 140.9 24 Nonfarm noncorporate 997.6 1,075.4 1,145.1 1.195.9 1.177.6 1,183.0 1.195.9 1,208.0' 1,208.9 1,209.8 1,210.2 25 Corporate 1,570.6 1,724.6 1,899.5 2,064.8 2,005.3 2.035.5 2,064.8 2,103.9' 2,138.6 2,156.3 2,177.1 26 Foreign credit market debt held in United States 238.3 244.6 253.9 261.5 252.2 257.7 261.5 260.4 272.0 279.3 284.8 27 Bonds 74.9 82.3 89.2 94.5 92.1 94.2 94.5 102.1 107.7 108.6 115.6 28 Bank loans n.e.c 26.9 23.3 21.5 21.4 21.5 22.6 21.4 19.0 19.3 19.8 18.6 29 Open market paper 37.4 41.2 49.9 63.0 52.7 57.5 63.0 59.3 65.1 71.5 75.3 30 U.S. government loans 99.1 97.7 93.2 82.6 85.8 83.4 82.6 80.0 80.0 79.4 75.3 31 Total domestic plus foreign 7,884.7 8,588.5 9,349.9 10,066.8 9,690.8 9,862.8 10,066.8 10,329.8' 10,498.7 10,673.3 10,864.7 Financial sectors 32 Total credit market debt owed by financial sectors 1,529.8 1,836.8 2,084.4 2,322.4 2,234.1 2,263.8 2,322.4 2,356.3 2,403.3 2,444.4 2,520.2 By instrument 33 U.S. government related 810.3 978.6 1,098.4 1,249.3 1,169.5 1,203.6 1,249.3 1,286.1 1,328.0 1,365.4 1,418.5 34 Sponsored credit agency securities 273.0 303.2 348.1 373.3 369.0 370.4 373.3 376.0 378.9 381.9 3%.0 35 Mortgage pool securities 531.6 670.4 745.3 871.0 795.6 828.2 871.0 905.2 944.2 978.5 1,017.5 36 Loans from U.S. government 5.7 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 37 Private financial sectors 719.5 858.2 986.1 1,073.0 1,064.6 1,060.2 1,073.0 1,070.2 1,075.3 1,079.0 1,101.8 38 Corporate bonds 287.4 366.3 418.0 482.7 466.1 472.7 482.7 491.7 508.2 513.6 526.8 39 Mortgages 2.7 3.1 3.4 3.4 3.5 3.5 3.4 3.2 3.5 4.1 4.1 40 Bank loans n.e.c 36.1 32.8 34.2 36.0 33.8 34.1 36.0 33.2 34.8 34.9 36.7 41 Open market paper 284.6 322.9 377.7 409.1 399.4 398.8 409.1 409.1 402.5 408.4 417.1 42 Loans from Federal Home Loan Banks... 108.6 133.1 152.8 141.8 161.9 151.1 141.8 132.9 126.3 117.9 117.1 43 Total, by sector 1,529.8 1,836.8 2,084.4 2,322.4 2,234.1 2,263.8 2,322.4 2,356.3 2,403.3 2,444.4 2,520.2 44 Sponsored credit agencies 278.7 308.2 353.1 378.3 374.0 375.4 378.3 381.0 383.8 386.8 400.9 45 Mortgage pools 531.6 670.4 745.3 871.0 795.6 828.2 871.0 905.2 944.2 978.5 1,017.5 46 Private financial sectors 719.5 858.2 986.1 1,073.0 1,064.6 1,060.2 1,073.0 1,070.2 1,075.3 1,079.0 1,101.8 47 Commercial banks 75.6 81.8 78.8 77.4 75.7 77.0 77.4 73.4 73.3 70.7 76.3 48 Bank affiliates 116.8 131.1 136.2 142.5 141.2 144.0 142.5 141.5' 133.8 122.5 114.7 49 Savings and loan associations 119.8 139.4 159.3 145.2 167.9 155.7 145.2 137.1 125.6 115.1 112.7 50 Mutual savings banks 8.6 16.7 18.6 17.2 17.7 17.5 17.2 15.4 16.7 17.3 17.1 51 Finance companies 328.1 378.8 446.1 4%.2 478.0 481.2 496.2 499.6' 510.3 530.1 546.6 52 REITs 6.5 7.3 11.4 10.1 10.6 10.0 10.1 10.1 9.8 10.2 10.3 53 SCO issuers 64.0 103.1 135.7 184.4 173.5 174.9 184.4 193.1 205.7 213.1 224.0 All sectors 54 Total credit market debt 9,414.4 10,425.3 11,434.3 12,389.1 11,925.0 12,126.6 12,389.1 12,686.1' 12,902.0 13,117.7 55 U.S. government securities.. 2,620.0 2,933.9 3.211.1 3,513.7 3,330.3 3,404.7 3,513.7 3,642.0 3,724.8 ,830.6 56 State and local obligations... 679.1 728.4 790.8 821.2 804.9 816.4 821.2 822.4 827.4 838.0 57 Corporate and foreign bonds 1,031.7 1,197.4 1,358.9 1,502.6 1,446.1 1.470.5 1,502.6 1,530.5' 1,571.4 ,589.3 58 Mortgages 2,617.0 2,953.8 3.247.2 3,540.1 3,402.1 3.473.6 3,540.1 3,693.6' 3,754.3 ,809.7 59 Consumer credit 659.8 693.2 743.5 790.6 756.7 771.0 790.6 774.3 783.3 793.9 60 Bank loans n.e.c 729.0 729.5 768.9 820.3 795.6 807.4 820.3 808.4' 815.7 815.8 61 Open market paper 384.9 437.9 513.4 579.2 562.2 569.6 579.2 594.5 596.3 611.7 62 Other loans 693.1 751.1 800.5 821.4 827.1 813.5 821.4 820.5 828.9 828.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • May 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 11998866 11998877 11998888 11998899 Q2 Q3 Q4 Qlr Q2' Q3r Q4 1 Total funds advanced in credit markets to domestic nonfinancial sectors 7,646.3 8,343.9 9,096.0 9,805.2 9,438.7 9,605.1 9,805.2 10,069.4 10,226.6 10,394.1 10,579.9 By public agencies and foreign 2 Total held 1,779.4 2,006.6 2,199.7 2,379.3 2,263.5 2,317.4 2,379.3 2,419.9 2,503.0 2,582.0 22,,665566..55 3 U.S. government securities 509.8 570.9 651.5 682.1 642.7 668.6 682.1 679.2 706.9 737.4 762.0 4 Residential mortgages 678.5 814.1 900.4 1,038.4 954.4 991.1 1,038.4 1,077.7 1,126.5 1,171.8 1,215.9 5 FHLB advances to thrifts 108.6 133.1 152.8 141.8 161.9 151.1 141.8 132.9 126.3 117.9 117.1 6 Other loans and securities 482.4 488.6 495.1 517.0 504.5 506.6 517.0 530.2 543.3 555.0 561.4 7 Total held, by type of lender 1,779.4 2,006.6 2,199.7 2,379.3 2,263.5 2,317.4 2,379.3 2,419.9 2,503.0 2,582.0 2,656.5 8 U.S. government 255.3 240.0 217.6 207.1 211.5 207.8 207.1 216.2 227.8 242.0 241.2 9 Sponsored credit agencies and mortgage pools ... 835.9 1,001.0 1,113.0 1,238.2 1,157.8 1,193.5 1,238.2 1,274.0 1,315.0 1,358.0 1,406.8 10 Monetary authority 205.5 230.1 240.6 233.3 238.4 227.6 233.3 224.4 237.8 240.8 241.4 11 Foreign 482.8 535.5 628.5 700.6 655.7 688.5 700.6 705.2 722.4 741.3 767.1 Agency and foreign debt not in line 1 12 Sponsored credit agencies and mortgage pools ... 810.3 978.6 1,098.4 1,249.3 1,169.5 1,203.6 1,249.3 1,286.1 1,328.0 1,365.4 1,418.5 13 Foreign 238.3 244.6 253.9 261.5 252.2 257.7 261.5 260.4 272.0 279.3 284.8 Private domestic holdings 14 Total private holdings 6,915.6 7,560.4 8,248.5 8,936.8 8,596.9 8,749.0 8,936.8 9,196.0 9,323.7 9,456.7 9,626.7 15 U.S. government securities 2,110.1 2,363.0 2,559.7 2,831.6 2,687.6 2,736.1 2,831.6 2,962.8 3,017.9 3,093.2 3,220.3 16 State and local obligations 679.1 728.4 790.8 821.2 804.9 816.4 821.2 822.4 827.4 838.0 840.6 17 Corporate and foreign bonds 606.6 674.3 765.6 831.6 797.7 814.5 831.6 847.6 866.2 878.5 899.3 18 Residential mortgages 1,288.5 1,399.0 1,560.2 1,670.4 1,631.5 1,657.7 1,670.4 1,756.7 1,766.4 1,771.1 1,772.9 19 Other mortgages and loans 2,339.8 2,528.7 2,724.9 2,923.8 2,837.0 2,875.3 2,923.8 2,939.4 2,972.1 2,993.8 3,010.6 20 LESS: Federal Home Loan Bank advances 108.6 133.1 152.8 141.8 161.9 151.1 141.8 132.9 126.3 117.9 117.1 Private financial intermediation 21 Credit market claims held by private financial institutions 6,018.0 6,564.5 7,128.6 7,662.7 7,424.6 7,507.8 7,662.7 7,850.5 7,915.0 8,000.6 8,123.5 27. Commercial banking 2,187.6 2,323.0 2,479.3 2,656.6 2,549.0 2,599.6 2,656.6 2,680.4 2,720.7 2,751.1 2,776.5 23 Savings institutions 1,297.9 1,445.5 1,567.7 1,480.7 1,561.0 1,530.3 1,480.7 1,461.3 1,409.5 1,371.5 1,339.7 24 Insurance and pension funds 1,525.4 1,705.1 1,903.8 2,081.6 1,999.0 2,031.6 2,081.6 2,152.5 2,198.4 2,242.5 2,307.6 25 Other finance 1,007.1 1,091.0 1,177.9 1,443.8 1,315.6 1,346.2 1,443.8 1,556.4 1,586.4 1,635.5 1,699.6 26 Sources of funds 6,018.0 6,564.5 7,128.6 7,662.7 7,424.6 7,507.8 7,662.7 7,850.5 7,915.0 8,000.6 8,123.5 27 Private domestic deposits and RPs 3,199.0 3,354.2 3,599.1 3,824.3 3,679.1 3,742.5 3,824.3 3,846.6 3,837.6 3,852.9 3,897.0 28 Credit market debt 719.5 858.2 986.1 1,073.0 1,064.6 1,060.2 1,073.0 1,070.2 1,075.3 1,079.0 1,101.8 29 Other sources 2,099.5 2,352.1 2,543.5 2,765.5 2,680.9 2,705.1 2,765.5 2,933.7 3,002.1 3,068.8 3,124.7 30 Foreign funds 18.6 62.3 71.5 61.6 49.4 55.0 61.6 63.4 66.3 94.1 108.2 31 Treasury balances 27.5 21.6 29.0 25.6 34.4 30.3 25.6 16.7 32.1 36.6 30.9 32 Insurance and pension reserves 1,398.5 1,527.8 1,692.5 1,826.0 1,770.0 1,785.7 1,826.0 1,861.5 1,907.7 1,940.6 1,996.7 33 Other, net 655.0 740.3 750.5 852.3 827.2 834.0 852.3 992.1 996.0 997.5 988.8 Private domestic nonfinancial investors 34 Credit market claims 1,617.0 1,854.1 2,106.0 2,347.1 2,236.9 2,301.5 2,347.1 2,415.6 2,484.1 2,535.0 2,605.0 35 U.S. government securities 848.7 936.7 1,072.2 1,206.4 1,122.9 1,171.3 1,206.4 1,256.2 1,288.7 1,332.3 1,414.4 36 Tax-exempt obligations 212.6 274.4 340.9 369.3 353.8 363.1 369.3 362.5 368.5 372.4 368.1 37 Corporate and foreign bonds 90.5 114.0 100.4 130.5 128.2 131.1 130.5 152.1 156.2 151.8 138.4 38 Open market paper 145.1 178.5 218.0 228.7 236.7 239.3 228.7 230.1 247.2 247.9 244.6 39 Other 320.1 350.4 374.4 412.1 395.3 396.8 412.1 414.8 423.3 430.6 439.5 40 Deposits and currency 3,410.1 3,583.9 3,832.3 4,073.6 3,926.2 3,979.0 4,073.6 4,094.9 4,096.7 4,118.3 4,173.7 41 Currency 186.3 205.4 220.1 231.8 226.4 224.4 231.8 234.4 242.7 247.2 254.4 42 Checkable deposits 516.6 515.4 527.2 528.7 495.0 486.1 528.7 501.2 510.7 501.2 527.7 43 Small time and savings accounts 1,948.3 2,017.1 2,156.2 2,256.7 2,189.3 2,224.4 2,256.7 2,289.4 2,292.3 2,302.4 2,324.2 44 Money market fund shares 268.9 297.8 318.0 403.3 362.1 391.0 403.3 436.7 426.3 454.5 465.7 45 Large time deposits 336.7 373.9 414.7 437.8 435.7 440.0 437.8 431.1 415.8 407.1 392.0 46 Security RPs 128.5 150.1 182.9 197.9 196.9 200.9 197.9 188.3 192.5 187.9 187.4 47 Deposits in foreign countries 24.8 24.3 13.1 17.6 20.7 12.1 17.6 13.9 16.4 18.3 22.3 48 Total of credit market instruments, deposits, and currency 5,027.2 5,438.0 5,938.2 6,420.7 6,163.0 6,280.5 6,420.7 6,510.6 6,580.7 6,653.3 6,778.7 49 Public holdings as percent of total 22.6 23.4 23.5 23.6 23.4 23.5 23.6 23.4 23.8 24.2 24.5 50 Private financial intermediation (in percent) 87.0 86.8 86.4 85.7 86.4 85.8 85.7 85.4 84.9 84.6 84.4 51 Total foreign funds 501.3 597.8 700.1 762.3 705.1 743.5 762.3 768.6 788.7 835.4 875.2 MEMO: Corporate equities not included above 52 Total market value 3,360.6 3,325.0 3,619.8 4,378.9 4,069.7 4,395.4 4,378.9 4,170.3 4,336.4 3,846.4 3,995.8 53 Mutual fund shares 413.5 460.1 478.3 555.1 514.8 543.9 555.1 550.3 587.9 547.3 579.9 54 Other equities 2,947.1 2,864.9 3,141.6 3,823.8 3,555.0 3,851.5 3,823.8 3,620.0 3,748.5 3,299.1 3,415.9 55 Holdings by financial institutions 974.6 1,039.5 1,176.1 1,492.3 1,343.0 1,478.5 1,492.3 1,435.6 1,543.0 1,312.1 1,408.3 56 Other holdings 2,385.9 2,285.5 2,443.7 2,886.6 2,726.8 2,917.0 2,886.6 2,734.6 2,793.4 2,534.3 2,587.4 NOTES BY LINE NUMBER. 32. Excludes net investment of these reserves in corporate equities. 1. Line 1 of table 1.59. 33. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 8-11. 34. Line 14 less line 21 plus line 28. 6. Includes farm and commercial mortgages. 35-39. Lines 15-19 less amounts acquired by private finance plus amounts 12. Credit market debt of federally sponsored agencies, and net issues of borrowed by private finance. Line 39 includes mortgages. federally related mortgage pool securities. 41. Mainly an offset to line 10. 14. Line 1 less line 2 plus line 12 and 13. Also line 21 less line 28 plus line 34. 48. Lines 34 plus 40, or line 14 less line 29 plus 41 and 47. Also sum of lines 29 and 48 less lines 41 and 47. 49. Line 2/line 1 and 13. 19. Includes farm and commercial mortgages. 50. Line 21/line 14. 27. Line 40 less lines 41 and 47. 51. Sum of lines 11 and 30. 28. Excludes equity issues and investment company shares. Includes line 20. 52-54. Includes issues by financial institutions. 30. Foreign deposits at commercial banks plus bank borrowings from foreign NOTE. Full statements for sectors and transaction types in flows and in amounts affiliates, less claims on foreign affiliates and deposits by banking in foreign banks. outstanding may be obtained from Flow of Funds Section, Stop 95, Division of 31. Demand deposits and note balances at commercial banks. Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A45 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1990 Measure 1988 1989 1990 July Aug. Sept. Nov. Feb. 1 Industrial production (1987 = 100)' 105.4 108.1 109.2 110.1 109.9 108.3' 107.2 106.6' 2 3 M Pr a F o r d k in e u t a c l t , s, t g o r t t o o a t u l a p l ( i 1 n ( 9 g 1 8 s 9 7 8 7 = 1 = 0 1 0 0 ) 0) 1 1 0 0 5 5 . . 3 6 1 1 0 0 9 8 . .6 1 1 1 1 1 0 0 . . 1 9 ' 1 11 1 1 0 . . 7 9 1 1 1 1 1 0 . . 7 9 1 1 1 1 0 1 . . 9 9 1 1 1 1 1 2 . . 4 6 1 11 1 2 1 . . 3 0 1 1 0 1 9 0 . . 3 2 ' ' 1 1 0 0 8 9 . . 4 2 1 1 0 0 7 8 . . 9 8 ' 1 10 0 8 7 . .2 2 4 Consumer goods (1987 = 100) 104.0 106.7 107.3 107.8 107.5 107.8 108.7 108.6 106.5 105.5 105.4' 104.6 6 5 Int E e q rm ui e p d m ia e t n e t ( ( 1 1 9 9 8 8 7 7 = = 1 1 0 0 0 0 ) ) 1 1 0 0 7 4 . . 6 4 1 10 1 6 2 . .3 8 1 10 1 7 5 . . 7 5 ' 1 1 1 0 6 8 . .3 8 1 10 1 8 7 . . 4 2 1 1 1 0 7 7 . . 2 9 1 1 1 0 7 7 . . 8 4 1 1 1 0 7 7 . . 0 0 1 1 1 0 5 6 . . 1 2 ' ' 1 10 1 6 3 . . 1 9 1 K 1 M 3.3 ^ ' 1 10 1 4 2 . . 1 7 7 Materials (1987 = 100) 105.6 107.4 107.8' 108.8 109.6 109.7 109.4 108.3 106.8' 105.2 104.5' 103.4 Industry groupings 8 Manufacturing (1987 = 100) 108.9 109.9 110.8 110.7 108.9 107.4 106.9 106.0 Capacity utilization (percent)2 83.9 83.9 82.3 83.1 83.1 82.2 80.7 79.4 78.8 78.0 9 Manufacturing 166.7 172.9 153.3' 164.0 153.0 149.0 146.0 147.0 146.0 130.0 132.0 133.0 10 Construction contracts (1982 = 100)3... 11 Nonagricultural employment, total4 128.0 131.5' 133.8 134.4 134.3 134.1 134.1 133.9 133.6 133.4 133.1 132.9 2 1 1 1 1 1 1 1 1 0 3 2 4 6 7 8 5 9 P R D e e i G W r s S ta p s e o o i a M M M o r l o n v g s d a s a a a a i e s c a l n n n s b - e l u u u l p i e a - e n f f f p r s n a a a c 6 o p r d c c c o o d e t t t m d u u r u u sa s u r r r c e o l i i i i c , a n n n n n i r t g n g g g a y o , , g , l t a t p d t i o l o n r i t s t o c a b a o d l l u m u r c e s t e 3 i o m n e - n t w s orker 2 2 2 2 1 1 1 9 9 5 4 5 2 9 0 3 8 3 4 3 2 8 6 3 8 . . . . . . . . . 2 6 0 2 3 5 5 4 3 ' ' ' ' 2 2 2 2 2 1 1 9 0 7 5 9 7 4 0 4 3 8 2 0 8 0 3 4 2 . . . . . . . . . 1 1 7 9 7 7 8 0 9 ' ' ' ' 2 2 2 2 2 1 1 9 7 8 0 9 8 4 0 4 6 2 9 1 5 6 2 9 6 . . . . . . . . . 2 8 0 5 7 0 8 7 1 ' 2 2 2 2 2 1 1 9 8 7 0 9 8 4 0 4 7 8 2 6 2 5 8 3 7 . . . . . . . . . 3 7 8 8 0 8 9 4 4 2 2 2 2 2 1 1 9 0 9 9 7 5 8 0 4 7 0 6 4 2 0 3 6 7 . . . . . . . . . 1 1 2 4 1 9 0 9 3 2 2 2 2 2 1 1 9 9 7 0 9 5 8 0 4 6 4 6 1 0 2 0 7 7 . . . . . . . . . 9 5 7 8 7 2 6 3 8 2 2 2 2 2 1 1 9 7 9 9 0 8 5 0 4 6 6 1 2 7 8 2 2 7 . . . . . . . . . 4 2 6 2 0 7 4 4 4 2 2 2 2 2 1 1 9 7 0 9 9 5 8 0 4 6 2 4 6 0 2 1 8 7 . . . . . . . . . 1 8 3 0 7 9 6 8 4 2 2 2 2 2 1 1 9 7 9 0 5 8 8 0 4 4 5 3 2 2 9 9 0 7 . . . . . . . . . 8 3 2 9 7 7 9 6 4 2 2 2 2 2 1 1 9 7 0 9 8 9 4 0 4 7 5 5 4 9 1 8 0 7 . . . . . . . . . 1 5 0 3 9 3 4 2 2 2 2 2 2 2 1 9 9 0 7 9 8 4 s 4 2 4 5 9 3 9 4 7 s . . . . . . . . ^ 5 7 6 6 9 3 2 8 ' ' 2 1 n n n n 9 9 8 4 4 . . . . 8 3 8 6 7 a a a a . . . . . . . . . 9 9 7 1 2 21 PR C IC o E n S 7 s umer (1982-84 = 100) 118.3 124.0 130.7 129.9 130.4 131.6 132.7 133.5 133.8 133.8 134.6 134.8 22 Producer finished goods (1982 = 100) 108.0 113.6 119.2 117.8 118.2 119.3 120.4 122.3 122.9 121.9 121.9 121.2 1. A major revision of the industrial production index and the capacity 6. Based on Bureau of Census data published in Survey of Current Business. utilization rates was released in April 1990. See "Industrial Production: 1989 1. 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 • May 1991 2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted. Exceptions noted. 1990 1991 CCaatteeggoorryy 11998888'' 11998899'' 11999900 July Aug. Sept. Oct. Nov. Dec. Jan.' Feb. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 186,837 188,601 190,216 190,275 190,411 190,568 190,717 190,854 190,999 191,116 191,248 2 Labor force (including Armed Forces)1 123,893 126,077 126,954 126,848 126,855 127,137 127,067 126,880 127,307 126,777 127,209 3 Civilian labor force 121,669 123,869 124,787 124,709 124,705 124,970 124,875 124,723 125,174 124,638 125,076 4 Nonagricultural industries2 111,800 114,142 114,728 114,774 114,538 114,689 114,558 114,201 114,321 113,759 113,6% 5 Agriculture 3,169 3,199 3,186 3,108 3,152 3,194 3,175 3,185 3,253 3,163 3,222 Unemployment 6 Number 6,701 6,528 6,874 6,827 7,015 7,087 7,142 7,337 7,600 7,715 8,158 7 Rate (percent of civilian labor force) 5.5 5.3 5.5 5.5 5.6 5.7 5.7 5.9 6.1 6.2 6.5 8 Not in labor force 62,944 62,524 63,262 63,427 63,556 63,431 63,650 63,974 63,692 64,339 64,039 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 105,536 108,413 110,330 110,740 110,613 110,612 110,432 110,165 110,004' 109,771 109,587 10 Manufacturing 19,350 19,426 19,064 19,131 19,084 19,019 18,951 18,744 18,693' 18,614 18,487 11 Mining 713 700 735 745 735 736 733 738 740 737 739 12 Contract construction 5,110 5,200 5,205 5,229 5,194 5,176 5,093 5,029 4,983' 4,833 4,860 13 Transportation and public utilities 5,527 5,648 5,838 5,841 5,846 5,870 5,870 5,866 5,882' 5,884 5,848 14 Trade 25,132 25,851 26,151 26,225 26,222 26,214 26,147 26,082 26,001' 25,984 25,892 15 Finance 6,649 6,724 6,833 6,842 6,852 6,851 6,843 6,833 6,829' 6,820 6,810 16 Service 25,669 27,096 28,209 28,287 28,387 28,440 28,475 28,548 28,573' 28,619 28,647 17 Government 17,386 17,769 18,295r 18,440 18,293 18,306 18,320 18,325 18,303' 18,280 18,304 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 Ql Q2 Q3 Q4' Ql Q2 Q3 Q4 Ql Q2 Q3 Q4' Output (1987 = 100) Capacity (percent of 1987 output) Utilization rate (percent) 1 Total industry 108.3 109.4 110.5 108.5 130.3 131.1 131.9 132.8 83.1 83.5 83.7 81.7 2 Manufacturing 109.2 110.2 111.1 109.0 132.1 133.0 134.0 135.0 82.7 82.8 82.9 80.8 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 Durable 110.4 112.4 113.6 110.0 136.1 137.1 138.0 139.0 81.1 82.0 82.3 79.2 6 Lumber and products 105.1 102.3 101.5 95.7 123.0 123.5 124.0 124.6 85.5 82.8 81.8 76.8 7 Primary metals 106.1 107.4 112.2 107.2 127.2 127.4 127.7 127.9 83.4 84.2 87.9 83.8 8 Iron and steel 107.1 107.5 114.3 110.0 132.0 132.2 132.5 132.7 81.1 81.3 86.3 82.9 9 Nonferrous 104.6 107.1 109.2 103.4 120.4 120.6 120.9 121.1 86.9 88.8 90.3 85.3 10 Nonelectrical machinery 124.4 126.7 128.5 126.5 151.5 153.1 154.7 156.3 82.1 82.8 83.1 80.9 11 Electrical machinery 111.1 112.2 112.4 109.9 137.3 138.7 140.0 141.4 80.9 80.9 80.3 77.8 12 Motor vehicles and parts 91.5 102.6 103.7 89.4 132.2 132.4 132.7 132.9 69.2 77.5 78.2 67.2 13 Aerospace and miscellaneous transportation equipment ... 111.6 113.6 114.5 113.4 133.4 134.3 135.2 136.1 83.6 8844..66 8844..77 8833..33 14 Nondurable 107.7 107.5 108.1 107.8 126.9 127.9 128.9 129.9 84.8 84.0 83.8 82.9 15 Textile mill products 101.1 102.4 101.3 98.1 115.9 116.3 116.6 117.0 87.2 8888..11 86.9 83.9 16 Paper and products 103.9 104.5 107.2 105.8 113.9 114.5 115.1 115.7 91.2 9911..33 93.2 91.4 17 Chemicals and products 109.9 109.9 110.8 109.9 133.4 134.6 135.9 137.1 82.4 81.6 81.5 8800..11 18 Plastics materials 111.7 116.3 117.2 118.2 126.1 128.4 130.6 132.9 88.6 90.6 89.7 8888..99 19 Petroleum products 109.9 106.0 110.0 107.4 121.1 121.2 121.3 121.4 90.7 87.4 90.7 88.5 70 101.3 102.5 103.4 103.0 115.6 115.0 114.5 114.0 87.6 89.1 90.3 90.4 71 Utilities 105.7 107.8 110.5 108.2 126.1 126.6 127.1 127.6 83.8 85.2 86.9 84.8 22 Electric 108.4 111.0 112.9 111.0 121.2 121.9 122.6 123.2 89.4 91.1 92.1 90.1 Previous cycle2 Latest cycle3 1990 1991 High Low High Low Feb. July Aug. Sept. Oct. Nov/ Dec/ Jan/ Feb." Capacity utilization rate (percent) 23 Total industry 89.2 72.6 87.3 71.8 83.3 83.8 83.7 83.6 83.0 81.6 80.5 79.9 79.1 24 Manufacturing 88.9 70.8 87.3 70.0 83.0 83.1 82.9 82.8 82.2 80.7 79.4 78.8 78.0 25 Primary processing 92.2 68.9 89.7 66.8 86.1 86.1 86.1 85.1 84.3 83.2 81.3 80.4 79.2 26 Advanced processing 87.5 72.0 86.3 71.4 81.7 81.8 81.6 81.8 81.3 79.6 78.6 78.1 77.5 77 Durable 88.8 68.5 86.9 65.0 81.3 82.3 82.3 82.2 81.2 79.1 77.3 76.7 75.5 28 Lumber and products 90.1 62.2 87.6 60.9 84.8 83.6 81.0 80.7 78.9 76.6 74.8 75.9 73.1 79 Primary metals 100.6 66.2 102.4 46.8 84.8 86.4 89.8 87.4 85.0 85.3 81.3 77.3 73.7 30 Iron and steel 105.8 66.6 110.4 38.3 83.8 83.5 89.3 86.0 83.2 84.8 80.6 74.3 68.8 31 Nonferrous 92.9 61.3 90.5 62.2 86.4 90.9 90.5 89.6 87.7 85.9 82.3 81.9 81.3 3? Nonelectrical machinery 96.4 74.5 92.1 64.9 82.0 83.2 83.2 82.8 82.2 80.8 79.7 78.9 78.3 33 Electrical machinery 87.8 63.8 89.4 71.1 80.8 80.4 80.4 80.1 78.6 78.1 76.6 75.7 74.7 34 Motor vehicles and parts .... 93.4 51.1 93.0 44.5 71.2 77.4 76.1 81.0 78.1 64.5 59.0 62.3 59.9 35 Aerospace and miscellaneous transportation equipment.. 77.0 66.6 81.1 66.9 83.9 85.4 84.4 84.3 84.0 83.1 8822..88 8811..66 8800..55 36 Nondurable 87.9 71.8 87.0 76.9 85.3 84.1 83.8 83.6 83.6 82.9 82.3 81.8 81.4 37 Textile mill products 92.0 60.4 91.7 73.8 88.9 88.3 86.1 86.3 86.6 83.3 81.7 81.9 80.2 38 Paper and products 96.9 69.0 94.2 82.0 92.3 93.8 92.5 93.3 92.5 90.9 91.0 89.6 89.4 39 Chemicals and products 87.9 69.9 85.1 70.1 82.8 81.5 81.8 81.4 81.0 80.2 79.2 78.8 78.5 102 0 50 6 90.9 63.4 88.9 90.5 89.7 88.9 90.0 90.2 86.6 41 Petroleum products 96.7 81.1 89.5 68.2 92.4 91.1 90.8 90.1 89.5 88.9 87.0 86.9 89.8 47 94.4 88.4 96.6 80.6 87.4 90.7 89.4 90.9 89.9 90.6 90.7 90.1 90.9 43 Utilities 95.6 82.5 88.3 76.2 82.5 86.4 87.6 86.7 85.6 83.8 84.9 84.1 81.2 44 Electric 99.0 82.7 88.3 78.7 88.4 91.6 92.7 91.9 91.2 88.9 90.2 89.4 86.2 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 • May 1991 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data are seasonally adjusted _ 1987 1990 1991 pro- 1990 por- avg. tion Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov/ Dec/ Jan/ Feb.p Index (1987 = 100) MAJOR MARKET 1 Total index 100.0 109.2 108.5 108.9 108.8 109.4 110.1 110.4 110.5 110.6 109.9 108.3 107.2 106.6 105.7 2 Products 60.8 110.1 109.4 110.1 109.8 110.5 110.9 110.9 110.9 111.4 111.0 109.3 108.4 107.9 107.2 3 Final products 46.0 110.9 109.7 110.7 110.4 111.2 111.7 111.7 111.9 112.6 112.3 110.2 109.2 108.8 108.2 4 Consumer goods 26.0 107.3 107.0 107.5 107.2 107.4 107.8 107.5 107.8 108.7 108.6 106.5 105.5 105.4 104.6 5 Durable consumer goods 5.6 106.2 106.2 110.8 107.3 109.3 112.1 108.3 107.4 110.4 106.9 99.4 96.0 96.9 94.8 6 Automotive products 2.5 102.3 99.3 109.3 102.4 107.0 112.2 106.7 104.6 111.8 107.1 93.5 86.7 89.8 86.1 7 Autos and trucks 1.5 97.4 92.7 107.7 95.8 105.6 112.9 104.8 101.5 113.0 107.5 84.2 74.6 79.6 75.2 8 Autos, consumer .9 92.2 86.9 100.5 87.7 96.8 103.8 98.0 97.2 111.5 104.6 80.7 77.2 83.2 79.1 9 Trucks, consumer .6 106.1 102.3 120.0 109.3 120.4 128.3 116.1 108.8 115.4 112.2 90.2 70.2 73.7 68.6 10 Auto parts and allied goods... 1.0 109.6 109.4 111.6 112.2 108.9 111.2 109.5 109.3 110.0 106.4 107.3 104.9 105.2 102.5 11 Other 3.1 109.4 111.6 112.0 111.2 111.1 112.0 109.5 109.6 109.3 106.8 104.1 103.4 102.5 101.6 12 Appliances, A/C, and TV .8 102.0 107.8 108.1 104.4 103.6 107.5 100.2 101.9 101.0 94.6 90.8 89.9 92.5 91.2 13 Carpeting and furniture .9 104.9 104.7 105.9 107.5 107.6 107.8 106.0 104.9 106.0 103.8 99.2 101.0 99.0 97.1 14 Miscellaneous home goods ... 1.4 116.4 118.2 118.0 117.3 117.5 117.2 116.9 116.8 116.1 115.5 114.6 112.4 110.3 110.3 15 Nondurable consumer goods 20.4 107.6 107.2 106.6 107.1 106.9 106.6 107.3 107.9 108.2 109.1 108.5 108.1 107.7 107.3 16 Foods and tobacco 9.1 105.9 106.2 105.8 105.6 105.2 104.4 105.1 105.7 105.3 106.7 107.8 107.4 106.7 106.4 17 Clothing 2.6 95.7 99.6 97.0 96.0 96.4 95.7 95.6 94.6 95.3 94.2 91.7 91.8 90.6 91.1 18 Chemical products 3.5 113.2 112.0 111.0 113.5 113.0 112.8 112.4 114.3 115.1 115.9 113.5 112.6 114.3 114.4 19 Paper products 2.5 119.7 117.6 116.4 118.1 118.6 118.3 120.3 119.3 121.9 123.4 122.8 122.7 120.7 119.9 20 Energy 2.7 105.9 101.5 103.1 104.1 104.1 105.3 106.7 109.0 108.0 108.8 106.4 106.4 106.3 104.6 21 Fuels .7 102.9 106.6 101.8 101.6 98.2 102.6 104.6 106.0 105.6 104.0 101.1 98.1 99.2 103.0 22 Residential utilities 2.0 107.0 99.6 103.6 105.0 106.3 106.3 107.5 110.0 108.9 110.6 108.4 109.4 108.9 105.2 23 Equipment, total 20.0 115.5 113.3 114.9 114.7 116.2 116.8 117.2 117.2 117.8 117.0 115.1 113.9 113.3 112.7 24 Business equipment 13.9 123.1 120.1 122.2 121.6 123.5 124.4 125.0 125.4 126.4 125.4 122.9 121.6 121.2 120.4 25 Information processing and related .. 5.6 127.3 124.7 126.0 126.4 126.6 126.3 128.0 128.5 129.5 130.1 128.8 128.0 128.5 129.3 26 Office and computing 1.9 149.8 144.3 147.2 149.3 148.9 150.6 152.7 152.2 153.6 155.3 149.8 148.9 150.1 152.1 27 Industrial 4.0 115.3 113.4 113.9 114.2 115.8 116.0 117.2 117.9 117.4 115.4 115.3 112.7 111.4 110.2 28 Transit 2.5 129.9 122.7 130.6 126.2 132.5 137.4 135.5 135.4 140.5 137.5 126.3 123.5 125.5 122.7 29 Autos and trucks 1.2 96.8 91.7 104.5 95.2 105.7 112.2 103.1 101.5 111.0 106.5 83.9 75.3 79.8 75.5 30 Other 1.9 118.5 117.4 117.8 117.6 119.4 119.9 119.2 119.8 118.5 117.0 117.6 119.0 115.3 112.9 31 Defense and space equipment 5.4 97.3 97.6 97.5 97.3 97.6 97.6 97.8 97.7 97.3 97.3 96.2 95.8 94.5 94.4 32 Oil and gas well drilling .6 109.0 100.1 106.0 114.3 118.6 119.5 116.2 106.9 107.4 107.1 109.7 107.3 106.4 108.2 33 Manufactured homes .2 90.8 94.3 92.9 89.7 91.3 92.8 90.0 93.4 91.8 89.0 87.3 83.4 83.1 77.3 34 Intermediate products, total 14.7 107.7 108.4 108.2 108.0 108.3 108.3 108.4 107.9 107.4 107.0 106.2 106.1 104.9 104.1 35 Construction supplies 6.0 105.2 108.2 107.3 106.4 105.5 106.0 106.7 105.3 103.8 103.1 101.8 100.8 98.6 97.5 36 Business supplies 8.7 109.4 108.5 108.9 109.1 110.2 109.8 109.5 109.7 109.9 109.7 109.2 109.9 109.3 108.7 37 Materials, total 39.2 107.8 107.1 107.1 107.3 107.7 108.8 109.6 109.7 109.4 108.3 106.8 105.2 104.5 103.4 38 Durable goods materials 19.4 111.8 110.8 110.9 110.9 112.5 113.8 114.0 114.9 114.1 112.5 110.4 107.5 106.9 105.0 39 Durable consumer parts 4.2 104.0 102.8 104.5 103.2 108.5 108.5 108.1 110.4 109.0 106.0 98.5 91.4 93.9 91.7 40 Equipment parts 7.3 118.1 117.6 117.6 117.4 118.1 119.1 119.2 119.4 119.8 118.6 117.4 116.9 115.4 114.2 41 Other 7.9 110.2 108.7 108.1 108.9 109.6 111.8 112.4 113.1 111.6 110.4 110.2 107.4 105.8 103.6 42 Basic metal materials 2.8 111.9 109.9 107.5 110.2 109.2 113.6 115.5 116.3 115.8 112.0 112.7 109.3 105.5 102.2 43 Nondurable goods materials 9.0 106.0 105.8 105.2 106.1 105.2 106.1 107.8 106.8 106.9 106.5 105.6 104.4 104.0 103.9 44 Textile materials 1.2 96.7 96.2 94.9 95.6 97.4 99.4 100.2 97.8 98.1 97.9 95.1 90.8 92.1 90.9 45 Pulp and paper materials 1.9 106.4 105.3 103.0 106.0 104.5 104.8 109.0 106.9 109.4 108.6 107.2 108.5 105.6 106.1 46 Chemical materials 3.8 106.7 107.3 107.5 107.4 105.4 107.3 108.5 108.0 106.6 105.6 105.8 104.5 104.2 103.8 47 Other 2.1 109.5 108.8 108.7 109.8 109.8 108.8 109.9 109.3 110.1 110.8 109.4 107.9 108.8 109.2 48 Energy materials 10.9 102.1 101.7 102.0 101.8 101.1 102.1 103.3 103.0 103.0 102.3 101.6 101.6 100.8 100.2 49 Primary energy 7.2 101.3 102.1 101.2 100.3 100.1 101.2 103.3 102.1 101.0 100.7 101.4 101.5 101.1 101.4 50 Converted fuel materials 3.7 103.5 100.9 103.4 104.6 102.9 103.9 103.4 104.9 107.0 105.3 102.0 101.9 100.2 97.9 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.3 109.5 108.9 109.0 109.2 109.5 110.0 110.6 110.7 110.6 110.0 109.0 108.1 107.3 106.6 52 Total excluding motor vehicles and parts... 95.3 109.8 109.2 109.2 109.5 109.7 110.2 110.8 110.9 110.7 110.2 109.4 108.6 107.7 107.0 53 Total excluding office and computing machines 97.5 108.2 107.6 108.0 107.8 108.4 109.1 109.3 109.4 109.5 108.8 107.3 106.1 105.5 104.5 54 Consumer goods excluding autos and trucks 24.5 107.9 107.8 107.5 107.9 107.6 107.5 107.6 108.2 108.4 108.7 107.9 107.4 106.9 106.4 55 Consumer goods excluding energy 23.3 107.5 107.6 108.0 107.5 107.8 108.1 107.6 107.7 108.7 108.6 106.5 105.4 105.3 104.6 56 Business equipment excluding autos and trucks 12.7 125.7 122.9 124.0 124.2 125.3 125.6 127.2 127.8 128.0 127.2 126.8 126.1 125.3 124.8 57 Business equipment excluding office and computing equipment 12.0 118.8 116.2 118.2 117.2 119.4 120.2 120.5 121.1 122.0 120.6 118.6 117.1 116.6 115.3 58 Materials excluding energy 28.4 110.0 109.2 109.1 109.4 110.2 111.4 112.1 112.3 111.8 110.6 108.9 106.5 105.9 104.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A49 2.13—Continued 1987 1990 1991 SIC pro- 1990 GGrroouuppss code por- aavvgg.. tion Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov/ Dec/ JJaann// FFeebb.."" Index (1987 = 100) MAJOR INDUSTRY 1 Total index 100.0 109.2 108.5 108.9 108.8 109.4 110.1 110.4 110.5 110.6 109.9 108.3 107.2 106.6 105.7 2 Manufacturing 84.4 109.9 109.6 109.8 109.5 110.3 110.8 111.1 111.1 111.2 110.7 108.9 107.4 106.9 106.0 3 Primary processing 26.7 106.3 106.9 106.0 105.9 106.1 107.0 107.9 108.0 106.9 106.2 104.9 102.7 101.8 100.5 4 Advanced processing 57.7 111.6 110.9 111.7 111.3 112.4 112.6 112.5 112.5 113.2 112.8 110.8 109.6 109.2 108.7 5 Durable 47.3 111.6 110.7 111.9 111.1 112.6 113.4 113.4 113.5 113.8 112.5 109.9 107.6 107.0 105.7 6 Lumber and products ... 24 2.0 101.6 104.3 105.0 103.3 101.7 102.0 103.6 100.5 100.3 98.2 95.5 93.3 94.7 91.4 7 Furniture and fixtures ... 25 1.4 105.9 104.8 105.9 107.6 108.0 108.7 108.0 106.7 106.9 104.4 102.3 102.1 99.1 98.4 8 Clay, glass, and stone products 32 2.5 105.7 108.0 107.7 105.1 106.4 106.1 106.0 106.6 104.5 104.4 103.8 110000..88 9999..11 9988..55 9 Primary metals 33 3.3 108.4 107.9 105.4 106.4 106.2 109.5 110.3 114.6 111.6 108.6 109.1 104.0 98.9 94.4 10 Iron and steel 333311,,22 1.9 109.9 110.6 106.1 106.7 105.5 110.3 110.6 118.3 113.9 110.3 112.6 107.0 98.7 91.5 11 Raw steel .1 109.6 109.0 105.9 104.9 107.6 111.8 113.9 118.5 111.6 112.8 109.5 100.6 104.7 95.0 12 Nonferrous 333-6,9 1.4 106.2 104.0 104.3 105.9 107.1 108.3 109.8 109.4 108.4 106.2 104.1 99.8 99.3 98.6 13 Fabricated metal products 34 5.4 105.9 105.6 105.5 105.0 107.1 106.7 107.7 107.9 106.8 106.4 110044..33 110011..88 110011..66 110000..33 14 Nonelectrical machinery. 35 8.6 126.6 124.2 125.2 125.7 126.9 127.5 128.3 128.8 128.5 128.1 126.3 125.0 124.2 123.7 15 Office and computing machines 357 2.5 149.8 144.3 147.3 149.3 149.0 150.6 152.7 152.2 153.6 115555..33 114499..88 114488..99 115500..11 115522..11 16 Electrical machinery 36 8.6 111.4 111.0 112.3 111.3 112.4 112.8 112.2 112.5 112.5 110.8 110.4 108.7 107.7 106.7 17 Transportation equipment 37 9.8 105.5 103.5 107.9 105.1 109.0 111.0 109.3 107.9 111.1 110099..22 110000..11 9966..66 9988..00 9955..99 1188 Motor vehicles and parts 371 4.7 96.8 94.1 103.5 95.8 104.0 108.0 102.7 101.0 107.5 103.8 8855..88 7788..55 8833..00 7799..99 19 Autos and light trucks 22..33 9966..66 9911..88 106.7 94.6 104.3 111.6 103.8 100.9 112.8 110077..11 8833..77 7744..99 80.1 7755..88 20 Aerospace and miscellaneous transportation equipment.. 372-6,9 5.1 113.3 111.9 111.9 113.4 113.5 113.8 115.2 114.1 114.2 114.0 111133..11 111133..00 111111..66 111100..33 21 Instruments 38 3.3 116.9 116.2 115.7 115.8 116.5 115.0 116.9 117.5 118.4 118.1 118.1 118.2 118.9 119.3 2222 Miscellaneous manufacturers 39 1.2 120.0 118.1 118.6 118.6 119.1 119.6 120.4 121.8 121.3 121.5 112222..55 111188..88 111155..33 111155..33 23 Nondurable 3377..22 107.8 108.3 107.2 107.5 107.4 107.6 108.1 108.1 108.0 108.4 107.7 107.2 106.8 106.5 24 Foods 20 88..88 107.6 107.4 107.1 107.0 106.8 106.1 107.1 107.7 107.6 108.8 109.6 109.1 108.5 108.6 25 Tobacco products 21 1.0 98.6 102.3 100.0 98.8 97.2 95.6 98.5 96.3 96.4 97.8 99.0 100.8 100.5 99.5 26 Textile mill products 22 1.8 100.8 103.0 99.8 100.9 102.7 103.6 102.9 100.4 100.7 101.2 97.4 95.6 96.0 94.1 27 Apparel products 23 2.4 98.8 102.1 99.8 98.7 99.2 99.3 99.2 98.8 98.4 97.2 95.5 94.7 93.1 93.6 28 Paper and products 26 3.6 105.3 105.0 102.8 105.3 104.0 104.2 107.8 106.5 107.5 106.8 105.1 105.4 104.0 104.0 29 Printing and publishing .. 27 6.4 112.0 112.1 111.4 112.0 112.8 112.0 111.4 110.9 111.6 112.9 112.4 113.3 112.9 112.4 30 Chemicals and products . 28 8.6 110.2 110.5 109.5 110.3 109.2 110.3 110.4 111.1 110.9 110.7 110.0 108.9 108.8 108.6 31 Petroleum products 29 1.3 108.2 112.0 109.1 106.8 104.6 106.5 110.5 110.2 109.3 108.6 107.8 105.6 105.5 109.0 3322 Rubber and plastic products 30 3.0 110.2 109.1 109.8 109.0 110.9 112.8 110.9 112.0 110.3 111100..66 110099..66 110066..77 110077..99 110055..88 33 Leather and products ... 31 .3 100.0 102.9 103.3 102.6 103.5 102.0 102.5 99.6 100.3 95.3 89.9 92.6 89.8 88.2 34 Mining 7.9 102.5 101.0 101.1 102.9 102.2 102.2 104.0 102.4 103.9 102.6 103.3 103.2 102.5 103.3 35 Metal 10 .3 153.2 143.4 141.4 152.7 148.7 156.7 164.8 155.7 163.6 146.8 153.4 162.1 156.2 155.8 36 Coal 11,12 1.2 113.2 111.9 112.9 114.2 110.0 113.5 118.5 110.2 116.8 114.7 112.9 110.6 108.4 112.9 37 Oil and gas extraction 13 5.7 95.5 94.1 94.6 95.7 96.0 94.6 95.5 95.8 95.8 95.8 97.3 96.7 96.5 96.9 38 Stone and earth minerals .. 14 .7 119.4 120.0 116.5 120.2 119.9 121.1 121.8 120.1 121.7 118.0 113.5 118.1 117.0 116.0 39 Utilities 7.6 108.0 104.0 106.2 106.7 107.1 109.7 109.7 111.4 110.3 109.2 106.9 108.5 107.6 104.1 40 Electric 491.3PT 6.0 110.8 107.1 109.7 109.7 110.3 113.1 112.1 113.6 112.9 112.1 109.6 111.4 110.5 106.7 41 Gas 492,3PT 1.6 97.3 92.3 93.3 95.5 95.2 97.4 100.7 103.3 100.9 98.1 97.0 97.7 96.8 94.3 SPECIAL AGGREGATES 42 Manufacturing excluding p m a o r t t o s r vehicles and 7799..88 111100..77 110.5 110.2 110.3 110.7 111.0 111.6 111.7 111.4 111.1 110.3 110099..11 110088..33 110077..66 43 Manufacturing excluding office and computing machines 8822..00 110088..77 110088..66 108.7 108.3 109.2 109.6 109.8 109.9 110.0 109.4 110077..77 110066..22 110055..66 110044..77 Gross value (billions of 1982 dollars, annual rates) MAJOR MARKET 44 Products, total 1734.8 1,910.6 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 1,887.5 1,858.1 1,856.7 1,845.2 45 Final 1350.9 1,496.7 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 1,475.8 1,449.1 1,453.0 1,445.2 46 Consumer goods 833.4 882.2 888.6 893.4 883.9 885.9 893.8 886.0 885.9 895.2 892.7 868.2 854.8 856.0 851.5 47 Equipment 517.5 614.4 599.8 614.1 610.0 620.1 629.6 622.7 630.4 633.9 631.0 607.6 594.3 597.0 593.7 48 Intermediate 384.0 414.0 415.0 415.1 412.3 416.2 413.6 414.9 413.1 412.5 415.9 411.7 409.0 403.7 400.1 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 • May 1991 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1990 1991 IItteemm 11998888 11998899 119999CC Apr. May June July Aug. Sept. Oct. Nov.' Dec.' Jan. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,456 1,339 1,096 1,108 1,065 1,108 1,082 1,050 992 920 906 844 797 2 1-family 994 932 792 813 802 796 780 762 737 708 671 645 609 3 2-or-more-family 462 407 304 295 263 312 302 288 255 212 235 199 188 4 Started 1,488 1,376 1,193 1,217 1,208 1,187 1,155 1,131 1,106 1,026 1,130 971 850 5 1-family 1,081 1,003 895 901 897 890 876 835 858 839 769 751 652 6 2-or-more-family 407 373 298 316 311 297 279 2% 248 187 361 220 198 7 Under construction, end of period' . 919 850 715 875r 857 847' 831' 815 790' 766 756 747 726 8 1-family 570 535 451 558r 546 538' 528' 517 503' 497' 486 479 467 9 2-or-more-family 350 315 264 317 311 309 303' 298 287 269' 270 268 259 10 Completed 1,530 1,423 1,308 1,310' 1,351' 1,294' 1,312' 1,307' 1,314' 1,275' 1,246 1,151 1,096 11 1-family 1,085 1,026 965 943r 1,001' 950T 988' 950' 963' 93(Y 922 873 816 12 2-or-more-family 445 3% 342 367' 350' 344' 324' 357' 351' 345' 324 278 280 13 Mobile homes shipped 218 198 188 190 190 190 187 193 184 186 181 167 168 Merchant builder activity in 1-family units 14 Number sold 675 650 536 534' 535' 549' 541 525' 504' 465' 486 465 408 15 Number for sale, end of period1 368' 363' 319 363 359' 354 350' 345 338 334 327 319 316 Price (thousands of dollars)2 Median 16 Units sold 113.3 120.4 122.3 130.0 125.0 125.0 118.7 118.4 113.0 120.0 118.9 126.9 121.8 Average 17 Units sold 139.0 148.3 148.9 153.4 150.6 150.4 149.8 144.7 142.1 153.0' 143.6 152.2 156.2 EXISTING UNITS (1-family) 18 Number sold 3,594 3,439 3,316 3,37(y 3,350' 3,370' 3,320' 3,410' 3,160' 3,070' 3,150 3,130 2,900 Price of units sold (thousands of dollars) 19 Median 89.2 92.y 95.2 95.7r 95.2' 98.9' 98.1' 97.2' 94.4 92.9 92.0 91.7 95.6 20 Average 112.5 118.0 118.3 117.9' 118.5' 122.5' 121.1' 120.7' 116.8' 115.9 115.6 114.1 123.0 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 422,076 432,068 434,285 444,737 443,805 441,088 437,010 436,338 423,941 423,320 415,451 407,097 396,627 22 Private 327,102 333,514 324,599 338,780 333,992 329,556 331,269 323,518 317,516 311,397 301,629 295,805 291,934 23 Residential 198,101 196,551 187,130 200,234 196,055 189,462 187,083 184,409 179,713 176,824 169,531 165,531 161,303 24 Nonresidential, total 129,001 136,963 137,469 138,546 137,937 140,094 144,186 139,109 137,803 113344,,557733 132,098 113300,,227744 113300,,663311 Buildings 25 Industrial 14,931 18,506 20,563 21,039 20,847 20,405 23,609 20,239 19,862 19,616 19,548 20,788 21,037 26 Commercial 58,104 59,389 54,630 55,765 54,698 56,581 56,951 55,347 53,648 51,996 49,656 49,346 47,892 27 Other 17,278 17,848 18,824 18,227 18,379 19,272 19,792 19,801 20,267 19,634 19,444 18,499 19,148 28 Public utilities and other 38,688 41,220 43,452 43,515 44,013 43,836 43,834 43,722 44,026 43,327 43,450 41,641 42,554 29 Public 94,971 98,551 109,685 105,957 109,813 111,532 105,741 112,820 106,425 111,923 113,822 111,292 104,693 30 Military 3,579 3,520 3,792 5,057 5,459 5,868 3,308 2,888 2,543 2,401 2,821 2,328 2,275 31 Highway 30,140 29,502 31,987 29,714 30,658 30,311 28,775 31,865 31,322 33,398 35,460 33,759 27,309 32 Conservation and development... 4,726 4,969 4,736 4,979 5,504 3,958 4,460 4,776 3,482 4,944 5,067 5,516 5,592 33 Other 56,526 60,560 69,170 66,207 68,192 71,395 69,198 73,291 69,078 71,180 70,474 69,689 69,517 1. Not at annual rates. NOTE. Census Bureau estimates for all series except (1) mobile homes, which 2. Not seasonally adjusted. are private, domestic shipments as reported by the Manufactured Housing 3. Value of new construction data in recent periods may not be strictly Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices comparable with data in previous periods because of changes by the Bureau of the of existing units, which are published by the National Association of Realtors. All Census in its estimating techniques. For a description of these changes see back and current figures are available from the originating agency. Permit Construction Reports (C-30-76-5), issued by the Bureau in July 1976. authorizations are those reported to the Census Bureau from 16,000 jurisdictions beginning with 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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 1990 1990 1991 FFFeeebbb... 11999900 11999911 111999999111 FFeebb.. FFeebb.. Mar. June Sept. Dec. Oct. Nov. Dec. Jan. Feb. CONSUMER PRICES (1982-84=100) 1 All items 5.3 5.3 7.5 4.1 8.2 4.9 .6 .3 .3 ..44 ..22 113344..88 ? 6.8 3.2 10.4 2.5 4.6 3.9 .4 .4 .1 .6 -.2 135.5 Energy items 8.0 6.6 12.0 1.2 44.2 18.0 4.2 .5 -.4 -2.4 -4.0 102.8 4 All items less food and energy 4.6 5.6 6.5 4.6 6.0 3.8 .3 .3 .4 ..88 .7 140.3 Commodities 3.5 4.2 5.7 2.0 3.3 2.3 .2 .2 .2 11..00 1.0 127.3 6 Services 5.2 6.5 6.9 5.5 7.2 4.8 .3 .4 .4 .7 .6 147.9 PRODUCER PRICES (1982=100) 7 Finished goods 5.1 3.2 6.4 1.0 11.3 4.4 1.2 .4 -.6 -.1 --..66 112211..22 8 Consumer foods 6.3 -.2 8.8 -1.6 2.3 1.3 .6 .2 -.5 -.3 .2 124.4 9 Consumer energy 12.0 12.6 16.9 -4.6 118.7 17.7 9.1 .2 -4.7 -2.5 -5.1 77.9 10 Other consumer goods 3.9 4.2 3.9 3.8 3.5 3.1 .1 .7 .0 .8 .5 132.7 11 Capital equipment 3.5 3.4 4.4 2.7 3.6 3.3 .2 .2 .3 .3 .2 125.7 1 1 7 3 Int E e x rm clu ed d i i a n t g e e m ne a r te g r y i als3 1 . . 1 5 2 1 . . 8 8 1 1. . 0 4 . . 4 7 1 4 3 . . 0 4 2 3. . 8 0 1 . . 3 6 r . . 2 2 ' - -. . 1 8 -.4 .1 - -. . 1 9 1 1 1 2 5 2 . . 7 2 14 Crude materials 2.6 -5.6 4.7 -3.8 -7.8 -5.3 .y -y -.7 --11..55 ..00 110077..55 15 Energy 14.7 .8 .5 -39.2 305.8 -20.2 18.8r -10.9r -10.7 6.3 -15.9 83.3 16 Other -6.4 1.8 3.7 13.5 5.9 -18.5 -1.4 -2.2 -1.6 .3 .2 133.6 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 • May 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 Ql Q2 Q3 Q4 GROSS NATIONAL PRODUCT 1 Total 4,873.7 5,200.8 5,463.6 5,289.3 5,375.4 5,443.3 5,514.6 5,521.3 By source 2 Personal consumption expenditures 3,238.2 3,450.1 3,658.6 3,518.5 3,588.1 3,622.7 3,693.4 3,730.0 3 Durable goods 457.5 474.6 480.9 471.2 492.1 478.4 482.3 470.8 4 Nondurable goods 1,060.0 1,130.0 1,194.1 1,148.8 1,174.7 1,179.0 1,205.0 1,217.9 5 Services 1,720.7 1,845.5 1,983.5 1,898.5 1,921.3 1,965.3 2,006.2 2,041.3 6 Gross private domestic investment 747.1 771.2 741.9 762.7 747.2 759.0 759.7 701.8 7 Fixed investment 720.8 742.9 746.1 737.7 758.9 745.6 750.7 729.3 8 Nonresidential 488.4 511.9 523.7 511.8 523.1 516.5 532.8 522.6 9 Structures 139.9 146.2 147.1 147.1 148.8 147.2 149.8 142.5 10 Producers' durable equipment 348.4 365.7 376.6 364.7 374.3 369.3 383.0 380.1 11 Residential structures 232.5 231.0 222.4 225.9 235.9 229.1 217.9 206.7 12 Change in business inventories 26.2 28.3 -4.2 25.0 -11.8 13.4 9.0 -27.6 13 Nonfarm 29.8 23.3 -6.2 24.1 -17.0 13.0 6.8 -27.6 14 Net exports of goods and services -74.1 -46.1 -34.6 -35.3 -30.0 -24.9 -41.3 -42.3 15 Exports 552.0 626.2 670.8 642.8 661.3 659.7 672.7 689.4 16 Imports 626.1 672.3 705.4 678.1 691.3 684.6 714.1 731.7 17 Government purchases of goods and services 962.5 1,025.6 1,097.8 1,043.3 1,070.1 1,086.4 1,102.8 1,131.8 18 Federal 380.3 400.0 423.5 399.9 410.6 421.9 425.8 435.8 19 State and local 582.3 625.6 674.3 643.4 659.6 664.6 677.0 695.9 By major type of product 20 Final sales, total 4,847.5 5,172.5 5,467.8 5,264.3 5,387.2 5,429.9 5,505.6 5,548.8 21 Goods 1,908.9 2,044.4 2,147.7 2,060.9 2,122.8 2,133.1 2,161.4 2,173.4 22 Durable 840.3 894.7 937.6 894.2 941.4 930.1 943.4 935.5 23 Nondurable 1,068.6 1,149.7 1,210.1 1,166.7 1,181.4 1,203.0 1,218.0 1,237.9 24 Services 2,488.6 2,671.2 2,862.1 2,747.5 2,791.3 2,834.2 2,889.6 2,933.4 25 Structures 450.0 456.9 458.0 455.9 473.0 462.5 454.6 442.0 26 Change in business inventories 26.2 28.3 -4.2 25.0 -11.8 13.4 9.0 -27.6 27 Durable goods 19.9 11.9 -10.6 13.2 -21.6 .0 98 -30.5 28 Nondurable goods 6.4 16.4 6.3 11.9 9.8 13.4 -.8 2.9 MEMO 29 Total GNP in 1982 dollars 4,016.9 4,117.7 4,156.3 4,133.2 4,150.6 4,155.1 4,170.0 4,149.5 NATIONAL INCOME 30 Total 3,984.9 4,223.3 4,418.2 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 3,287.1 32 Wages and salaries 2,431.1 2,573.2 2,705.3 2,612.7 2,651.6 2,696.3 2,734.2 2,739.2 33 Government and government enterprises 446.6 476.6 508.0 486.7 497.1 505.7 511.3 518.1 34 Other 1,984.5 2,096.6 2,197.3 2,126.0 2,154.5 2,190.6 2,222.9 2,221.1 35 Supplement to wages and salaries 474.0 505.8 538.9 515.9 528.8 536.1 542.7 548.0 36 Employer contributions for social insurance 248.5 263.9 280.8 268.4 276.0 279.7 282.7 284.8 37 Other labor income 225.5 241.9 258.1 247.5 252.8 256.4 260.0 263.2 38 Proprietors' income1 354.2 379.3 402.2 381.7 404.0 401.7 397.9 405.0 39 Business and professional1 310.5 330.7 352.4 336.0 346.6 350.8 355.6 356.8 40 Farm1 43.7 48.6 49.7 45.7 57.4 51.0 42.4 48.3 41 Rental income of persons2 16.3 8.2 6.5 4.1 5.5 4.3 8.4 7.8 42 Corporate profits1 337.6 311.6 298.7 290.9 296.8 306.6 300.7 n.a. 43 Profits before tax3 316.7 307.7 307.4 289.8 296.9 299.3 318.5 n.a. 44 Inventory valuation adjustment -27.0 -21.7 -13.6 -14.5 -11.4 -.5 -19.8 -22.8 45 Capital consumption adjustment 47.8 25.5 4.9 15.6 11.3 7.7 2.0 -1.5 46 Net interest 371.8 445.1 466.6 461.7 463.6 466.2 468.3 468.2 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 11999900rr Q4 Ql Q2 Q3 Q4r PERSONAL INCOME AND SAVING 1 Total personal income 4,070.8 4,384.3 4,645.1 4,469.2 4,562.8 4,622.2 4,678.5 4,716.7 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 2,739.2 4 3 5 6 C D Se o i M s r m t v r a i m i c n b e o u u d f t i a i n i v t c d y e t u - u p i s r n r t i r n d o i d g u e s u s t c r i i n e g s industries 7 6 5 5 1 9 2 7 6 6 4 2 . . . . 2 4 0 0 7 5 6 7 2 0 4 7 0 4 1 1 . . . . 7 8 6 4 7 6 5 8 2 3 4 3 9 7 6 0 . . . . 3 2 8 8 7 6 7 5 1 9 2 4 4 0 1 0 . . . . 6 0 4 9 7 6 5 8 2 2 0 4 4 7 2 1 . . . . 9 6 0 2 7 6 5 8 3 3 4 2 1 7 8 2 . . . . 1 1 3 2 7 6 8 5 4 4 3 5 2 4 5 1 . . . . 7 9 8 3 7 6 8 5 4 5 2 4 1 3 6 6 . . . . 9 0 2 2 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' income 354.2 379.3 402.2 381.7 404.0 401.7 397.9 405.0 10 Business and professional 310.5 330.7 352.4 336.0 346.6 350.8 355.6 356.8 11 Farm1 43.7 48.6 49.7 45.7 57.4 51.0 42.4 48.3 12 Rental income of persons 16.3 8.2 6.5 4.1 5.5 4.3 8.4 7.8 13 Dividends 102.2 114.4 123.8 118.2 120.5 122.9 124.9 126.7 14 Personal interest income 547.9 643.2 680.7 664.9 670.5 678.0 685.3 689.1 15 Transfer payments 587.7 636.9 694.7 655.9 680.9 686.7 696.4 714.7 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 194.1 212.8 226.2 215.8 222.9 224.1 228.6 228.9 18 EQUALS: Personal income 4,070.8 4,384.3 4,645.1 4,469.2 4,562.8 4,622.2 4,678.5 4,716.7 19 LESS: Personal tax and nontax payments 591.6 658.8 699.4 669.6 675.1 696.5 709.5 716.6 20 EQUALS: Disposable personal income 3,479.2 3,725.5 3,945.6 3,799.6 3,887.7 3,925.7 3,969.1 4,000.1 21 LESS: Personal outlays 3,333.6 3,553.7 3,767.3 3,625.5 3,696.4 3,730.6 3,802.6 3,839.5 22 EQUALS: Personal saving 145.6 171.8 178.4 174.1 191.3 195.1 166.5 160.6 MEMO 2 2 2 2 4 5 6 3 P Sa e D G P r v i e i r c n s r o a g p s s p o o s r i n s t a a a a n t l b a e ( t l 1 c e i ( o o 9 p n n 8 p e 2 a s r e u l c r d e s m p o n o r p n l t o l ) t a a d i l r o u s n i c ) n t c e o x m pe e n ditures 1 1 1 0 1 6 , , , 5 3 3 7 6 0 4 8 8 2 . . . . 2 3 0 4 1 1 1 0 1 6 , , , 6 5 5 7 3 5 4 8 1 0 . . . . 6 5 2 0 1 1 1 6 0 1 , , , 5 6 5 3 6 0 4 2 9 7 . . . . 5 6 8 0 1 1 1 0 6 1 , , , 6 5 5 8 4 4 4 8 6 1 . . . . 6 2 0 0 1 1 1 0 6 1 , , , 6 5 5 9 7 8 4 2 5 6 . . . . 1 9 9 0 1 1 1 0 6 1 , , , 6 5 5 7 5 6 5 2 4 4 . . . . 0 5 2 0 1 1 1 0 6 1 , , , 7 5 5 1 6 1 4 0 0 1 . . . . 1 2 8 0 1 1 1 1 6 0 , , , 3 4 6 3 7 0 4 3 0 1 . . . . 0 7 0 6 GROSS SAVING 27 Gross saving 656.1 691.5 656.2 674.8 664.8 679.3 665.9 n.a. 28 Gross private saving 751.3 779.3 783.8 786.4 795.0 806.7 772.2 n.a. 2 3 3 9 1 0 P U C e n o r r d s p i o s o n t r r a a i l b t e u s a t i e v n d i v n e g c n o t r o p r o y r a v t a e l u p a r t o io fi n t s a djustment - 1 2 9 4 7 1 5 . . . 0 4 6 - 1 2 5 7 1 3 1 . . . 7 8 0 - 1 1 2 7 3 9 8 . . . 6 8 4 - 1 1 3 7 4 4 9 . . . 5 1 8 - 1 1 3 9 1 6 1 . . . 4 7 3 1 4 9 - 0 5 . . . 5 1 5 - 1 1 2 6 9 6 6 . . . 8 5 5 n - 1 2 .a 6 2 . 0 . . 8 6 Capital consumption allowances 32 Corporate 322.1 346.4 363.1 356.5 356.7 359.7 365.5 370.3 33 Noncorporate 192.2 208.0 212.6 216.0 210.3 211.4 213.8 214.8 34 Government surplus, or deficit (-), national income and product accounts -95.3 -87.8 -127.6 -111.6 -130.2 -127.3 -106.4 n.a. 35 Federal -141.7 -134.3 -163.9 -150.1 -168.3 -166.0 -145.7 n.a. 36 State and local 46.5 46.4 36.2 38.5 38.1 38.6 39.3 n.a. 37 Gross investment 627.8 674.4 653.1 671.8 665.6 676.1 661.0 609.9 38 Gross private domestic 747.1 771.2 741.9 762.7 747.2 759.0 759.7 701.8 39 Net foreign -119.2 -96.8 -88.8 -90.9 -81.6 -82.9 -98.7 -91.8 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 • May 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 1988 1989 1990 Q4 Q1 Q2 Qy Q4" 1 Balance on current account -128,862 -110,035 -99,297 -26,692 -22,320' -22,733' -26,481 -27,762 2 Not seasonally adjusted -27,926 -18,327' -20,987 -30,672 -29,311 Merchandise trade balance -126,986 -114,864 -108,680 -28,746 -26,809' -23,225' -29,785 -28,861 Merchandise exports 320,337 360,465 389,286 91,738 %,093' %,585' 96,152 100,456 Merchandise imports -447,323 -475,329 -497,966 -120,484 -122,902' -119,810' -125,937 -129,317 Military transactions, net -5,452 -6,319 -6,414 -1,776 -1,287 -1,382 -1,705 -2,042 Investment income, net 1,610 -913 7,534 561 2,004' -990' 2,256 4,265 Other service transactions, net 16,971 26,783 29,337 7,900 7,212' 7,286' 6,852 7,988 Remittances, pensions, and other transfers -4,261 -3,758 -4,101 -889 -1,038' -921' -1,106 -1,037 U.S. government grants -10,744 -10,963 -16,972 -3,742 -2,402 -3,501 -2,993 -8,075 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) 2,969 1,185 2,971 -47 -659 -360 4,797 12 Change in U.S. official reserve assets (increase, -). -3,912 -25,293 -2,158 -3,202 -3,177 371 1,739 -1,092 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) 127 -535 -192 -204 -247 -216 363 -93 15 Reserve position in International Monetary Fund. 1,025 471 731 -23 234 493 8 -4 16 Foreign currencies -5,064 -25,229 -2,697 -2,975 -3,164 1,368 -995 17 Change in U.S. private assets abroad (increase, -). -83,232 -102,953 -62,062 -45,4% 36,741' -31,257' -33,273 -34,273 18 Bank-reported claims3 -56,322 -50,684 816 -32,658 52,353 -13,639 -13,489 -24,409 19 Nonbank-reported claims -2,847 1,391 47 1,202 -1,550 625 20 U.S. purchase of foreign securities, net -7,846 -21,938 -26,785 -4,109 -7,496 -11,247 -1,223 -6,819 21 U.S. direct investments abroad, net -16,217 -31,722 -36,370 -8,776 -9,318' -4,821' -19,186 -3,045 22 Change in foreign official assets in United States (increase, +) .. 39,515 8,823 30,778 -7,016 -8,203 5,541 13,588 19,851 23 U.S. Treasury securities 41,741 333 28,704 -7,342 -5,897 2,442 12,058 20,101 24 Other U.S. government obligations 1,309 1,383 667 569 -521 346 134 708 25 Other U.S. government liabilities4 -710 332 1,486 412 -381 1,089 -202 979 26 Other U.S. liabilities reported by U.S. banks3 -319 4,940 1,495 -820 -1,278 1,918 1,871 -1,016 27 Other foreign official assets -2,506 1,835 -1,574 165 -126 -254 -273 -921 28 Change in foreign private assets in United States (increase, +).. 181,926 205,829 56,766 76,336 -24,786 19,954 42,543 19,055 29 U.S. bank-reported liabilities' 70,235 61,199 19,786 36,674 -32,264 4,897 27,591 19,562 30 U.S. nonbank-reported liabilities 6,664 2,867 1,732 290 1,317 4,425 31 Foreign private purchases of U.S. Treasury securities, net 20,239 29,951 1,144 5,671 -835 3,614 312 — i ,947 32 Foreign purchases of other U.S. securities, net 26,353 39,568 4,0% 10,793 2,486 2,890 -1,670 390 33 Foreign direct investments in United States, net 58,435 72,244 25,708 21,466 5,537 7,236 11,885 1,050 34 Allocation of SDRs 0 0 0 0 0 0 0 0 35 Discrepancy -8,404 22,443 73,002 6,117 22,404' 28,932' 2,244 19,424 36 Owing to seasonal adjustments 3,560 3,023' -767' -4,980 2,726 37 Statistical discrepancy in recorded data before seasonal adjustment -8,404 22,443 73,002 2,558 19,381' 29,699 7,224 16,698 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) -3,912 -25,293 -2,158 -3,202 -3,177 371 1,739 -1,092 39 Foreign official assets in United States (increase, +) excluding line 25 40,225 8,491 29,292 -7,428 -7,822 4,452 13,790 18,872 40 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22 above) -2,996 10,713 1,902 -1,379 2,953 208 -1,600 341 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 38-40. 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 1991 IItteemm 11998888 11998899 11999900rr July Aug. Sept. Oct. Nov. Dec/ Jan." 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments, f.a.s. value 322,427 363,812 393,894 32,125 32,549 32,010 35,006 34,194 33,305 34,493 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 2 Customs value 440,952 473,211 494,903 41,244 42,283 41,337 45,994 43,106 39,582 41,489 Trade balance 3 Customs value -118,526 -109,399 -101,010 -9,119 -9,734 -9,326 10,988 -8,912 -6,277 -6,996 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 thc import side, additions are made SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade" for gold, ship purchases, imports of electricity from Canada, and other transac- (Department of Commerce, Bureau of the Census). 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 1990 1991 Type 1987 1988 1989 Aug. Sept. Oct. Nov. Dec. Feb." 1 Total 45,798 47,802 74,609 78,909 80,024 82,852 83,059 83,340 85,006 82,797 2 Gold stock, including Exchange 11,078 11,057 11,059 11,065 11,063 11,060 11,059 11,058 11,058 11,058 Stabilization Fund1 10,283 9,637 9,951 10,780 10,666 10,876 11,059 10,989 10,922 10,958 3 Special drawing rights2,3 4 ReseMrvoen petoasrityi oFnu innd International 11,349 9,745 9,048 8,890 8,881 9,066 8,871 9,076 9,468 9,556 5 Foreign currencies4 13,088 17,363 44,551 48,174 49,414 51,850 52,070 52,217 53,558 51,225 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 Aug. Sept. Oct. Nov. Dec. Jan. Feb." 1 Deposits 244 347 589 337 360 297 264 369 271 329 Assets held in custody 2 U.S. Treasury securities2 195,126 232,547 224,911 261,051 261,321 266,749 272,399 278,499 286,722 286,471 3 Earmarked gold 13,919 13,636 13,456 13,412 13,419 13,415 13,389 13,387 13,377 13,382 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 • May 1991 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data1 Millions of dollars, end of period 1990 1991 July Aug. Sept. Oct. Nov. Dec. Jan. All foreign countries 1 Total, all currencies 518,618 505,595 545,366 531,418 551,346 546,140 552,510 558,391' 556,586' 563,244 2 Claims on United States 138,034 169,111 198,835 174,583 178,236 182,561' 177,539 180,761' 188,159' 183,245 3 Parent bank 105,845 129,856 157,092 133,682 137,558 140,865 135,536 140,135' 148,SOC 140,752 4 Other banks in United States 16,416 14,918 17,042 15,239 14,500 14,272' 13,261 12,927 13,296 14,541 5 Nonbanks 15,773 24,337 24,701 25,662 26,178 27,424 28,742 27,699' 26,363 27,952 6 Claims on foreigners 342,520 299,728 300,575 304,674 313,831 311,248' 319,318 322,962' 312,347 321,352 7 Other branches of parent bank 122,155 107,179 113,810 115,353 121,705 123,359 128,747 135,177' 134,567 132,466 8 Banks 108,859 96,932 90,703 85,911 88,768 83,305' 82,706 81,385' 72,985 80,442 9 Public borrowers 21,832 17,163 16,456 16,264 16,157 16,379 16,335 16,588 17,501 18,407 10 Nonbank foreigners 89,674 78,454 79,606 87,146 87,201 88,205 91,530 89,812' 87,294 90,037 11 Other assets 38,064 36,756 45,956 52,161 59,279 52,331 55,653 54,668 56,080' 58,647 12 Total payable in U.S. dollars 350,107 357,573 382,498 346,428r 358,007' 360,178' 362,505' 371,518' 378,823' 379,043 13 Claims on United States 132,023 163,456 191,184 166,294 169,714 173,984' 168,956 172,159' 179,837' 175,163 14 Parent bank 103,251 126,929 152,294 128,066 131,994 135,068 129,850 134,269' 142,625' 135,047 15 Other banks in United States 14,657 14,167 16,386 14,375 13,513 13,422' 12,441 12,078 12,513 13,739 16 Nonbanks 14,115 22,360 22,504 23,853 24,207 25,494 26,665 25,812 24,699 26,377 17 Claims on foreigners 202,428 177,685 169,690 158,247r 163,490' 163,994' 168,722' 174,774' 174,090' 179,402 18 Other branches of parent bank 88,284 80,736 82,949 79,241 82,564 84,378 90,198 95,599 94,939 93,488 19 Banks 63,707 54,884 48,396 38,815 40,733 39,413' 37,531 37,740 36,439 40,708 20 Public borrowers 14,730 12,131 10,961 10,652 10,939 11,166 11,201 11,199 12,297 13,135 21 Nonbank foreigners 35,707 29,934 27,384 29,539' 29,254' 29,037' 29,792' 30,236' 30,415' 32,071 22 Other assets 15,656 16,432 21,624 21,887 24,803 22,200 24,827 24,585' 24,896' 24,478 United Kingdom 23 Total, all currencies 158,695 156,835 161,947 175,254 184,933 178,484 184,660 188,182 184,818' 184,817 24 Claims on United States 32,518 40,089 39,212 40,418 40,092 42,574' 39,862 42,301 45,560 40,197 25 Parent bank 27,350 34,243 35,847 36,564 36,140 39,042 35,904 38,453 42,413 36,533 26 Other banks in United States 1,259 1,123 1,058 894 1,037 723' 694 1,088 792 1,095 27 Nonbanks 3,909 4,723 2,307 2,960 2,915 2,809 3,264 2,760 2,355 2,569 28 Claims on foreigners 115,700 106,388 107,657 114,254 118,423 114,863' 122,203 124,077 115,536 121,077 29 Other branches of parent bank 39,903 35,625 37,728 41,181 43,581 44,408 47,390 49,499' 46,367 47,857 30 Banks 36,735 36,765 36,159 35,085 37,623 34,088' 35,480 36,135' 31,604 33,624 31 Public borrowers 4,752 4,019 3,293 3,619 3,757 3,639 3,521 3,675 3,860 3,953 32 Nonbank foreigners 34,310 29,979 30,477 34,369 33,462 32,728 35,812 34,768 33,705 35,643 33 Other assets 10,477 10,358 15,078 20,582 26,418 21,047 22,595 21,804 23,722' 23,543 34 Total payable in U.S. dollars 100,574 103,503 103,208 102,803 106,891 106,899 109,950 115,182' 116,762' 114,413 35 Claims on United States 30,439 38,012 36,404 36,230 35,979 37,997' 35,429 37,668 41,259 36,120 36 Parent bank 26,304 33,252 34,329 33,716 33,585 36,024 33,145 35,614 39,609 33,754 37 Other banks in United States 1,044 964 843 681 721 466' 419 611 334 771 38 Nonbanks 3,091 3,796 1,232 1,833 1,673 1,507 1,865 1,443 1,316 1,595 39 Claims on foreigners 64,560 60,472 59,062 58,278 60,390 59,811' 63,720 66,876 63,701 67,996 40 Other branches of parent bank 28,635 28,474 29,872 31,220 32,976 33,990 37,069 39,630 37,142 38,120 41 Banks 19,188 18,494 16,579 13,621 14,570 13,206' 13,571 13,915 13,135 14,479 42 Public borrowers 3,313 2,840 2,371 2,839 2,896 2,866 2,790 2,862 3,143 3,242 43 Nonbank foreigners 13,424 10,664 10,240 10,598 9,948 9,749 10,290 10,469 10,281 12,155 44 Other assets 5,575 5,019 7,742 8,295 10,522 9,091 10,801 10,638' 11,802' 10,297 Bahamas and Caymans 45 Total, all currencies 160,321 170,639 176,006 145,813 150,695 153,234 153,497 153,615 161,977' 166,553 46 Claims on United States 85,318 105,320 124,205 99,918 103,521 106,574 106,977 106,517 112,652' 115,060 47 Parent bank 60,048 73,409 87,882 64,748 68,507 70,145 70,845 71,249 77,536' 77,604 48 Other banks in United States 14,277 13,145 15,071 13,412 12,625 12,539 11,605 11,007 11,869 12,877 49 Nonbanks 10,993 18,766 21,252 21,758 22,389 23,890 24,527 24,261 23,247 24,579 50 Claims on foreigners 70,162 58,393 44,168 38,393 39,595 39,573 38,062 38,611 41,354 42,800 51 Other branches of parent bank 21,277 17,954 11,309 11,785 12,031 11,638 12,152 12,697 13,416 12,292 52 Banks 33,751 28,268 22,611 16,761 17,543 18,076 15,994 16,244 16,309 18,343 53 Public borrowers 7,428 5,830 5,217 4,307 4,554 4,818 4,876 4,772 5,806 6,527 54 Nonbank foreigners 7,706 6,341 5,031 5,540 5,467 5,041 5,040 4,898 5,823 5,638 55 Other assets 4,841 6,926 7,633 7,502 7,579 7,087 8,458 8,487 7,971 8,693 56 Total payable in U.S. dollars 151,434 163,518 170,780 141,303' 146,441' 149,583' 149,239' 149,519' 158,051' 161,705 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 1991 LLiiaabbiilliittyy aaccccoouunntt 11998877 11998888 11998899 July Aug. Sept. Oct. Nov. Dec. Jan. All foreign countries 57 Total, all currencies 518,618 505,595 545,366 531,418 551,346 546,140 552,510 558,391' 556,586' 563,244 58 Negotiable CDs 30,929 28,511 23,500 21,805 22,917 21,977 22,089 21,521 18,060 19,106 59 To United States 161,390 185,577 197,239 163,275 167,410 172,884r 167,543 171,358r 189,074' 185,528 60 Parent bank 87,606 114,720 138,412 105,401 109,818 117,352 113,066 115,396'' 138,684' 133,708 61 Other banks in United States 20,355 14,737 11,704 9,454 10,264 8,976 7,984 9,140 7,463' 9,341 62 Nonbanks 53,429 56,120 47,123 48,420 47,328 46,556r 46,493 46,822 42,927 42,479 63 To foreigners 304,803 270,923 296,850 314,503 321,365 317,202' 327,139 328,534 311,663 319,811 64 Other branches of parent bank 124,601 111,267 119,591 119,476 124,393 125,382 131,045 137,849 138,799 131,899 65 Banks 87,274 72,842 76,452 78,190 79,485 75,351' 75,815 72,352 58,981 70,208 66 Official institutions 19,564 15,183 16,750 19,468 17,801 17,475 18,436 17,996 14,776 17,343 67 Nonbank foreigners 73,364 71,631 84,057 97,369 99,686 98,994 101,843 100,337 99,107 100,361 68 Other liabilities 21,496 20,584 27,777 31,835 39,654 34,077 35,739 36,978 37,789' 38,799 69 Total payable in U.S. dollars 361,438 367,483 396,613 355,782 365,928 364,940 363,931 372,124 382,952' 383,364 70 Negotiable CDs 26,768 24,045 19,619 16,519 17,588 17,219 17,022 16,845 14,094 15,141 71 To United States 148,442 173,190 187,286 150,943 155,171 159,027 153,318 156,779 175,375' 171,438 77 Parent bank 81,783 107,150 132,563 98,928 103,355 109,458 104,619 106,828 130,505' 125,657 73 Other banks in United States 18,951 13,468 10,519 7,884 8,791 7,501 6,486 7,686 6,052' 7,627 74 Nonbanks 47,708 52,572 44,204 44,131 43,025 42,068 42,213 42,265 38,818 38,154 75 To foreigners 177,711 160,766 176,460 174,616 177,484 175,725 178,969 183,461 178,707 181,824 76 Other branches of parent bank 90,469 84,021 87,636 81,332 84,157 85,303 89,658 95,556 97,833 94,464 77 Banks 35,065 28,493 30,537 28,045 28,945 26,576 23,669 25,022 20,266 23,667 78 Official institutions 12,409 8,224 9,873 10,613 9,710 9,346 9,689 9,091 7,906 10,585 79 Nonbank foreigners 39,768 40,028 48,414 54,626 54,672 54,500 55,953 53,792 52,702 53,108 80 Other liabilities 8,517 9,482 13,248 13,704 15,685 12,969 14,622 15,039 14,776' 14,961 United Kingdom 81 Total, all currencies 158,695 156,835 161,947 175,254 184,933 178,484 184,660 188,182 184,818' 184,817 87 Negotiable CDs 26,988 24,528 20,056 17,795 18,703 17,542 17,557 17,144 14,256 14,872 83 To United States 23,470 36,784 36,036 32,320 33,365 35,485' 32,143 36,500 39,928 34,389 84 Parent bank 13,223 27,849 29,726 21,952 23,399 25,461 22,013 26,165 31,806 25,548 85 Other banks in United States 1,536 2,037 1,256 1,626 1,535 1,765 1,430 1,671 1,505 1,861 86 Nonbanks 8,711 6,898 5,054 8,742 8,431 8,259' 8,700 8,664 6,617 6,980 87 To foreigners 98,689 86,026 92,307 107,533 109,372 106,494' 114,959 113,958 108,531 113,754 88 Other branches of parent bank 33,078 26,812 27,397 28,944 28,967 30,487 32,357 34,406 36,709 34,547 89 Banks 34,290 30,609 29,780 32,420 34,647 30,1llr 33,870 32,844 25,141 31,765 90 Official institutions 11,015 7,873 8,551 11,314 9,902 9,578 10,788 9,534 8,346 10,368 91 Nonbank foreigners 20,306 20,732 26,579 34,855 35,856 36,318 37,944 37,174 38,335 37,074 92 Other liabilities 9,548 9,497 13,548 17,606 23,493 18,963 20,001 20,580 22,103' 21,802 93 Total payable in U.S. dollars 102,550 105,907 108,178 104,372 108,532 107,216 108,064 114,090 116,153' 114,367 94 Negotiable CDs 24,926 22,063 18,143 14,831 15,758 15,502 15,237 15,100 12,710 13,387 95 To United States 17,752 32,588 33,056 27,967 28,779 30,368 26,867 31,117 34,756 29,114 % Parent bank 12,026 26,404 28,812 21,208 22,423 23,963 20,334 24,381 30,014 23,945 97 Other banks in United States 1,308 1,752 1,065 1,175 1,228 1,471 1,035 1,318 1,156 1,324 98 Nonbanks 4,418 4,432 3,179 5,584 5,128 4,934 5,498 5,418 3,586 3,845 99 To foreigners 55,919 47,083 50,517 54,591 55,252 54,679 57,639 59,787 60,014 63,702 100 Other branches of parent bank 22,334 18,561 18,384 17,408 17,347 18,560 20,797 23,288 25,957 24,954 101 Banks 15,580 13,407 12,244 11,251 13,042 11,116 10,465 11,911 9,503 11,539 107 Official institutions 7,530 4,348 5,454 6,515 5,463 5,324 5,751 5,000 4,677 7,158 103 Nonbank foreigners 10,475 10,767 14,435 19,417 19,400 19,679 20,626 19,588 19,877 20,051 104 Other liabilities 3,953 4,173 6,462 6,983 8,743 6,667 8,321 8,086 8,673' 8,164 Bahamas and Caymans 105 Total, all currencies 160,321 170,639 176,006 145,813 150,695 153,234 153,497 153,615 161,977' 166,553 106 Negotiable CDs 885 953 678 548 553 553 560 561 646 654 107 To United States 113,950 122,332 124,859 95,904 100,622 104,211 103,545 103,852 114,400' 119,907 108 Parent bank 53,239 62,894 75,188 51,415 56,092 62,276 62,474 61,227 74,877' 80,157 109 Other banks in United States 17,224 11,494 8,883 6,228 7,039 5,398 4,959 5,798 4,526' 5,655 110 Nonbanks 43,487 47,944 40,788 38,261 37,491 36,537 36,112 36,827 34,997 34,095 111 To foreigners 43,815 45,161 47,382 47,010 46,922 46,237 46,867 46,299 44,444 42,883 11? Other branches of parent bank 19,185 23,686 23,414 24,560 24,965 24,781 25,864 25,579 24,715 23,099 113 Banks 10,769 8,336 8,823 8,120 7,469 7,519 6,794 6,569 5,588 6,069 114 Official institutions 1,504 1,074 1,097 999 943 731 703 763 622 811 115 Nonbank foreigners 12,357 12,065 14,048 13,331 13,545 13,206 13,506 13,388 13,519 12,904 116 Other liabilities 1,671 2,193 3,087 2,351 2,598 2,233 2,525 2,903 2,487 3,109 117 Total payable in U.S. dollars 152,927 162,950 171,250 140,377 145,670 148,589 147,749 147,962 156,793' 161,365 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • May 1991 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1990 1991 IItteemm 11998888 11998899 July Aug. Sept. Oct. Nov/ Dec/ Jan." 1 Total1 304,132 312,472 312,691 321,418 323,834 329,623 340,625 343,920 350,757 By type 2 Liabilities reported by banks in the United States 31,519 36,496 38,986 40,501 39,842 44,146 43,059 39,312 40,222 3 U.S. Treasury bills and certificates3 103,722 76,985 72,690 72,803 72,472 72,457 80,220 78,493 82,520 U.S. Treasury bonds and notes 4 Marketable 152,429 179,264 178,740 185,534 189,334 190,716 195,487 203,367 205,615 5 Nonmarketable 523 568 3,668 3,692 3,717 3,741 3,765 4,491 4,521 6 U.S. securities other than U.S. Treasury securities 15,939 19,159 18,607 18,888 18,469 18,563 18,094 18,257 17,879 By area 7 Western Europe1 123,752 133,417 149,845 152,777 156,432 163,383 169,472 171,311 172,098 8 9,513 9,482 8,415 11,083 10,171 8,903 8,639 8,598 8,116 9 Latin America and Caribbean 10,030 8,740 9,973 11,190 11,406 11,244 14,080 15,639 16,138 10 151,887 153,338 135,695 137,008 136,383 137,082 139,381 138,208 143,523 11 1,403 1,030 917 1,697 1,383 1,305 1,404 1,433 1,607 12 Other countries6 7,548 6,469 7,848 7,665 8,058 7,707 7,650 8,029 8,570 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 1990 IItteemm 11998877 11998888 11998899 Mar. June Sept. Dec. 1 Banks' own liabilities 55,438 74,980 67,822 63,244 68,547 69,683 69,102 2 Banks' own claims 51,271 68,983 65,127 61,100 66,655 67,965 66,071 3 Deposits 18,861 25,100 20,491 21,590 20,256 23,734 25,488 4 Other claims 32,410 43,884 44,636 39,510 46,399 44,231 40,582 5 Claims of banks' domestic customers 551 364 3,507 1,649 1,501 2,843 6,563 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 1991 Holder and type of liability 11999900'' July Aug. Sept. Oct. Nov/ Dec/ Jan." 1 Ail foreigners 685,339 736,663 757,863 719,860 737,890 741,998 750,222 747,506 757,863 756,612 2 Banks' own liabilities 514,532 577,283 579,764 554,516 570,277 572,174 576,823 564,319 579,764 571,313 3 Demand deposits 21,863 22,030 21,734 19,723 20,505 22,086 20,320 19,679 21,734 19,684 4 Time deposits 152,164 168,735 167,801 153,533 156,254 158,638 158,345 162.176 167,801 159,769 5 Other5 51,366 67,700 67,307 67,214 74,923 66,373 74,426 72,287 67,307 76,671 6 Own foreign offices4 289,138 318,818 322,922 314,046 318,594 325,077 323,731 310.177 322,922 315,190 7 Banks' custody liabilities5 .. 170,807 159,380 178,100 165,344 167,614 169,823 173,400 183,187 178,100 185,299 8 U.S. Treasury bills and certificates 115,056 91,100 98,383 91,884 93,038 91,464 94,971 101,430 98,383 106,018 9 Other negotiable and readily transferable instruments 16,426 19,526 17,273 17,596 16,983 17,198 17,681 18,294 17,273 17,836 10 Other 39,325 48,754 62,444 55,864 57,593 61,162 60,747 63,464 62,444 61,445 11 Nonmonetary international and regional organizations 3,224 4,772 5,608 4,112 4,290 5,206 4,507 5,273 5,608 7,501 12 Banks' own liabilities 2,527 3,156 4,230 2,790 2,330 3,894 3,472 3,128 4,230 6,024 13 Demand deposits 71 96 36 46 39 101 57 33 36 67 14 Time deposits 1,183 927 1,023 938 1,303 1,245 885 773 1,023 1,574 15 Other. 1,272 2,133 3,172 1,807 987 2,548 2,529 2,322 3,172 4,382 16 Banks' custody liabilities5 698 1,616 1,378 1,322 1,959 1,311 1,034 2,145 1,378 1,478 17 U.S. Treasury bills and certificates6 57 197 364 148 1,095 479 248 1,077 364 423 18 Other negotiable and readily transferable instruments 641 1,417 1,014 1,159 819 817 782 1,022 1,014 1,005 19 Other 0 2 0 15 45 15 5 46 0 50 20 Official institutions9 135,241 113,481 117,806 111,676 113,304 112,313 116,602 123,278 117,806 122,743 21 Banks' own liabilities 27,109 31,108 34,516 35,239 36,465 35,877 39,358 37,953 34,516 36,330 22 Demand deposits 1,917 2,1% 1,940 1,516 1,914 2,498 2,121 1,784 1,940 1,686 23 Time deposits 9,767 10,495 13,783 11,290 11,039 11,187 11,100 12,800 13,783 11,323 24 Other 15,425 18,417 18,793 22,433 23,512 22,192 26,137 23,370 18,793 23,321 25 Banks' custody liabilities5 108,132 82,373 83,290 76,437 76,839 76,436 77,244 85,325 83,290 86,413 26 U.S. Treasury bills and certificates6 103,722 76,985 78,493 72,690 72,803 72,472. 72,457 80,220 78,493 82,520 27 Other negotiable and readily transferable instruments7 4,130 5,028 4,594 3,5% 3,685 3,676 4,361 4.725 4,594 3,712 28 Other 280 361 203 150 351 289 427 380 203 180 29 Banks10 459,523 515,229 539,920 507,243 524,512 529,813 528,751 522,381 539,920 526,123 30 Banks' own liabilities 409,501 454,227 460,890 433,379 449,097 451,339 450,961 441,321 460,890 447,658 31 Unaffiliated foreign banks 120,362 135,409 137,968 119,334 130,502 126,262 127,230 131,144 137,968 132,469 32 Demand deposits 9,948 10,279 10,048 9,224 9,797 10,405 8,989 8,995 10,048 8,985 33 Time deposits2 80,189 90,557 88,948 74,103 77,585 80,214 80,350 83,654 88,948 81,814 34 Other3 30,226 34,573 38,972 36,007 43,120 35,643 37,892 38,495 38,972 41,670 35 Own foreign offices4 289,138 318,818 322,922 314,046 318,594 325,077 323,731 310,177 322,922 315,190 36 Banks' custody liabilities5 50,022 61,002 79,030 73,864 75,416 78,474 77,790 81,060 79,030 78,465 37 U.S. Treasury bills and certificates6 7,602 9,367 12,965 13,964 13,855 13,009 13,646 13,517 12,%5 12,840 38 Other negotiable and readily transferable instruments7 5,725 5,124 5,356 5,759 5,366 6,187 5,842 5,841 5,356 6,076 39 Other 36,694 46,510 60,710 54,141 56,195 59,278 58,302 61,701 60,710 59,549 40 Other foreigners 87,351 103,182 94,530 96,828 95,784 94,666 100,362 %,574 94,530 100,245 41 Banks' own liabilities 75,396 88,793 80,128 83,107 82,385 81,063 83,031 81,916 80,128 81,301 42 Demand deposits 9.928 9,459 9,710 8,937 8,755 9,082 9,153 8,868 9,710 8,945 43 Time deposits 61,025 66,757 64,048 67,202 66,326 65,992 66,010 64,948 64,048 65,058 44 Other3 4,443 12,577 6,370 6,968 7,304 5,990 7,868 8,100 6,370 7,298 45 Banks' custody liabilities5 11,956 14,389 14,402 13,721 13,400 13,602 17,331 14,658 14,402 18,944 46 U.S. Treasury bills and certificates6 3,675 4,551 6,561 5,082 5,285 5,504 8,621 6,616 6,561 10,235 47 Other negotiable and readily transferable instruments 5.929 7,958 6,310 7,082 7,113 6,518 6,697 6,705 6,310 7,043 48 Other 2,351 1,880 1,531 1,558 1,001 1,580 2,013 1,336 1,531 1,667 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 7,203 7,022 5,909 5,713 6,346 6,199 6,466 7,022 6,%3 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 • May 1991 3.17—Continued 1990 1991 AArreeaa aanndd ccoouunnttrryy 11998888 11998899 11999900'' July Aug. Sept. Oct. Nov. Dec.' Jan." 1 Total 685,339 736,663 757,863 719,860 737,890 741,998 750,222 747,506' 757,863 756,612 2 Foreign countries 682,115 731,892 752,255 715,747 733,601 736,792 745,716 742,233' 752,255 749,111 3 Europe 231,912 237,489 255,072 236,010 245,188 244,157 245,830 247,403' 255,072 248,228 4 Austria 1,155 1,233 1,229 1,498 1,544 1,436 1,401 1,385 1,229 1,616 5 Belgium-Luxembourg 10,022 10,648 12,407 10,598 11,537 12,126 12,207 11,509' 12,407 12,392 6 Denmark 2,200 1,415 1,412 2,581 2,238 2,055 1,984 1,781 1,412 1,128 7 Finland 285 570 602 485 463 392 660 422 602 507 8 France 24,777 26,903 30,927 23,110 24,201 29,116 29,128 29,196' 30,927 29,248 9 Germany 6,772 7,578 7,386 7,671 7,605 7,845 8,439 8,196' 7,386 8,352 10 Greece 672 1,028 934 877 923 1,435 993 949 934 895 11 Italy 14,599 16,169 17,918 17,114 17,117 16,361 16,984 16,225' 17,918 16,334 12 Netherlands 5,316 6,613 5,375 5,972 6,209 5,385 6,082 6,056 5,375 5,683 n Norway 1,559 2,401 2,358 1,793 2,192 1,951 1,875 2,330 2,358 2,181 14 Portugal 903 2,407 2,958 3,073 2,934 2,992 2,970 2,959' 2,958 2,877 IS Spain 5,494 4,364 7,694 4,922 4,447 4,343 5,312 7,347 7,694 8,964 16 Sweden 1,284 1,491 1,837 1,586 1,495 833 1,706 2,304 1,837 1,257 17 Switzerland 34,199 34,496 36,944 33,557 34,545 34,637 34,463 34,034' 36,944 36,790 18 Turkey 1,012 1,818 1,133 1,654 1,897 1,634 1,451 1,358 1,133 1,127 19 United Kingdom 111,811 102,362 109,525 100,934 108,181 104,676 100,961 103,032' 109,525 102,572 20 Yugoslavia 529 1,474 928 2,436 2,272 2,043 1,753 1,571 928 1,030 21 Other Western Europe1 8,598 13,563 11,839 14,619 14,057 13,145 15,934 15,141' 11,839 13,008 ??. U.S.S.R 138 350 119 194 56 240 234 220 119 196 23 Other Eastern Europe 591 608 1,546 1,335 1,275 1,515 1,294 1,388 1,546 2,072 24 Canada 21,062 18,865 20,332 20,056 21,122 20,796 19,654 20,679 20,332 19,868 25 Latin America and Caribbean 271,146 310,948 329,737 316,656 320,056 325,927 333,603 321,498' 329,737 334,182 26 Argentina 7,804 7,304 7,366 8,163 7,844 7,981 7,717 7,664' 7,366 7,659 27 Bahamas 86,863 99,341 107,313 98,292 101,635 108,280 110,155 97,696' 107,313 104,312 28 Bermuda 2,621 2,884 2,809 2,824 2,656 2,739 2,482 2,518 2,809 3,139 29 Brazil 5,314 6,334 5,853 6,083 6,329 6,058 5,892 6,470' 5,853 5,915 30 British West Indies 113,840 138,263 143,438 142,722 142,050 140,947 146,477 144,489' 143,438 150,257 31 Chile 2,936 3,212 3,145 3,540 3,491 3,135 3,170 3,422 3,145 3,193 32 Colombia 4,374 4,653 4,492 4,474 4,344 3,926 4,284 4,251 4,492 4,479 33 Cuba 10 10 11 15 11 10 49 9 11 18 34 Ecuador 1.379 1,391 1,379 1,349 1,348 1,348 1,314 1,310 1,379 1,359 35 Guatemala 1,195 1,312 1,541 1,523 1,496 1,517 1,485 1,478 1,541 1,564 36 Jamaica 269 209 257 209 213 217 219 228 257 237 37 Mexico 15,185 15,423 16,793 16,070 16,325 16,486 16,465 16,501 16,793 17,046 38 Netherlands Antilles 6,420 6,310 7,381 6,409 6,429 6,558 7,126 7,350' 7,381 7,100 39 Panama 4,353 4,361 4,574 4,388 4,648 4,632 4,592 4,644 4,574 4,337 40 Peru 1,671 1,984 1,295 1,405 1,369 1,362 1,360 1,327 1,295 1,347 41 Uruguay 1,898 2,284 2,520 2,560 2,531 2,512 2,512 2,446 2,520 2,595 42. Venezuela 9,147 9,468 12,793 9,830 10,435 11,107 11,351 13,001' 12,793 12,551 43 Other 5,868 6,206 6,779 6,803 6,901 7,113 6,951 6,693 6,779 7,073 44 147,838 156,201 138,037 134,134 137,793 136,902 137,236 143,653' 138,037 136,767 China 45 Mainland 1,895 1,773 2,421 1,890 2,324 2,115 2,173 2,493 2,421 2,866 46 Taiwan 26,058 19,588 11,263 12,611 12,639 12,468 12,237 11,418' 11,263 11,047 47 Hong Kong 12,248 12,416 12,669 13,316 13,833 13,836 13,767 13,843 12,669 14,853 48 India 699 780 1,225 909 806 1,035 953 1,116 1,225 1,459 49 Indonesia 1,180 1,281 1,238 1,377 1,130 1,398 1,261 1,261 1,238 1,166 50 Israel 1,461 1,243 2,767 1,122 1,125 939 921 3,075 2,767 2,823 51 Japan 74,015 81,184 68,287 66,299 68,676 68,926 67,923 69,135' 68,287 64,160 5? Korea 2,541 3,215 2,260 2,157 2,316 2,564 2,442 2,732 2,260 2,400 53 Philippines 1,163 1,766 1,510 1,314 1,350 1,340 1,274 1,549 1,510 1,455 54 Thailand 1,236 2,093 1,441 2,745 2,233 1,626 1,448 1,681 1,441 2,228 55 Middle-East oil-exporting countries 12,083 13,370 15,844 14,027 14,928 14,047 16,412 17,403 15,844 14,776 56 Other 13,260 17,491 17,113 16,367 16,433 16,609 16,426 17,949' 17,113 17,534 57 3,991 3,823 4,630 3,412 4,638 4,152 4,223 4,390' 4,630 5,177 58 Egypt 911 686 1,425 583 1,505 970 1,099 996 1,425 1,476 59 Morocco 68 78 104 95 77 93 87 90 104 107 60 South Africa 437 205 228 239 332 393 234 283' 228 212 61 Zaire 85 86 53 38 43 44 45 55 53 56 62 Oil-exporting countries4 1,017 1,121 1,110 873 1,072 966 1,050 1,288 1,110 1,508 63 Other 1,474 1,648 1,710 1,584 1,609 1,687 1,708 1,678 1,710 1,818 64 Other countries 6,165 4,564 4,447 5,480 4,803 4,858 5,169 4,610 4,447 4,888 65 Australia 5,293 3,867 3,672 4,892 4,122 4,127 4,371 3,804 3,672 3,882 66 All other 872 697 775 588 681 732 797 807 775 1,007 67 Nonmonetary international and regional organizations 3,224 4,772 5,608 4,112 4,290 5,206 4,507 5,273' 5,608 7,501 68 International 2,503 3,825 4,080 2,981 3,150 3,982 3,392 4,153' 4,080 6,034 69 Latin American regional 589 684 1,048 812 569 668 627 809 1,048 962 70 Other regional6 133 263 479 319 571 556 487 312 479 506 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 1991 Area and country 1988 1990' July Aug. Sept. Nov. Dec.' 1 Total 491,165 534,022 512,462 488,235 494,987 493,239 494,833 505,266' 512,462 2 Foreign countries 489,094 530,583 507,656 483,961 491,343 488,044 490,803 500,136' 507,656 3 Europe 116,928 119,024 113,695 102,368 106,463 105,418 103,631 107,189' 113,695 2 2 2 1 1 1 2 1 1 1 1 1 1 1 4 5 6 7 8 0 1 2 9 2 3 7 3 0 1 4 5 6 8 9 Y A F F T N N U O G B D P G S S O I S U t w i r p o w u u e u e e o t . e a t n r n a S h r h a l n t r r s r e g l i e i l g y h t n t t k e i t m . e m a w e o d u n z r S i e r r e c c e n s u e e g i d a a a e r . e y a l d n R r m W E a y n a r l l a l K k y v a a - n e i s L n i a s d t n d t u e s g e r x r d n e n o m m E E b u u o r r u o o r p p g e e 3 2 6 1 8 7 2 3 5 2 3 1 1 1 1 1 1 1 , , , , , , , , , , , , , , 5 8 5 9 3 2 7 4 4 4 7 0 1 2 2 4 2 9 8 3 4 9 1 4 5 2 8 5 3 6 0 8 5 5 3 7 3 6 2 9 1 5 5 3 5 9 3 5 6 5 6 3 2 4 3 7 3 1 3 0 6 1 6 5 6 2 6 6 1 1 1 1 1 1 1 1 , , , , , , , , , , , , , , 1 5 4 8 6 1 9 0 4 5 6 9 0 7 1 3 7 3 9 3 4 2 7 6 6 4 0 7 1 2 2 7 0 7 8 0 8 7 3 2 1 7 8 5 2 6 4 1 5 1 7 3 9 9 2 2 8 6 0 9 6 1 4 5 6 2 5 3 2 4 1 1 1 1 , , , , , , , , , , , , 4 4 0 0 5 3 4 7 3 3 4 7 5 5 7 0 7 3 4 1 7 3 3 7 7 0 4 5 6 7 8 8 9 3 3 4 0 4 2 9 2 5 1 3 7 2 8 8 6 7 7 5 7 0 5 7 4 2 9 9 5 1 6 4 4 2 2 3 4 3 1 1 1 1 , , , , , , , , , , , , 2 6 7 5 1 3 7 8 6 9 7 3 5 5 5 7 1 0 5 1 9 1 9 2 6 4 5 0 9 6 6 4 6 0 9 2 1 4 7 8 7 5 5 5 2 6 4 4 2 0 5 4 5 3 9 9 2 3 0 6 5 1 6 3 3 2 4 2 8 4 1 1 1 1 , , , , , , , , , , , , 6 7 4 4 9 2 2 6 7 6 6 6 4 6 1 6 4 8 0 1 8 1 0 8 8 9 3 9 2 3 7 7 1 9 3 3 2 2 1 0 2 2 7 7 8 8 9 4 4 4 7 6 6 7 6 0 7 9 0 0 5 1 5 4 2 2 3 7 3 2 4 1 1 , , , , , , , , , , , 6 9 4 2 6 4 3 3 8 6 9 7 6 9 6 3 3 6 4 1 2 2 4 1 3 9 0 7 9 4 1 3 6 4 6 4 7 1 8 2 7 8 7 9 4 8 3 7 7 4 2 0 9 0 2 0 3 2 6 0 5 1 2 3 8 5 5 2 3 3 1 1 1 , , , , , , , , . , , 4 5 2 1 3 0 3 2 7 6 8 7 7 2 4 7 4 4 8 2 7 7 6 1 4 7 2 7 4 6 3 5 7 4 2 4 7 8 1 2 5 7 7 1 7 1 5 3 7 7 2 0 0 2 9 4 4 9 4 6 5 1 5 2 2 3 9 6 3 1 1 3 1 , , , , , , , , , , , 2 9 1 5 6 6 4 9 6 6 4 3 8 2 7 3 1 3 8 8 5 9 7 5 1 4 8 1 6 3 4 5 6 4 6 6 2 8 4 6 1 5 1 3 9 1 4 9 1 4 6 9 8 9 8 0 0 6 2 1 ' ' ' 6 1 4 5 6 2 2 5 3 4 1 1 1 1 , , , , , , , , , , , , 4 0 3 7 0 5 4 4 3 5 5 4 1 7 3 4 7 3 1 0 7 3 7 5 0 7 3 6 1 4 8 3 3 9 8 4 4 9 2 0 2 1 3 8 2 7 5 6 1 8 7 0 5 9 5 2 7 7 9 4 24 Canada 18,889 15,450 16.091 16,391 15,431 15,445 16,185 14,295 16.091 25 Latin America and Caribbean 214,264 230,392 230,236 199,729 204,012 211,783 216,741 228,549' 230,236 26 Argentina 11,826 9,270 6,884 7,166 7,111 7,549 7,028 7,024 6,884 27 Bahamas 66,954 77,921 77,212 66,977 67,870 71,534 71,934 71,026 11,212 28 Bermuda 483 1,315 3,414 1,988 2,443 3,736 3,662 4,291 3,414 29 Brazil 25,735 23,749 17,994 20,180 18,906 18,651 18,626 18,393 17,994 30 British West Indies 55,888 68,709 87,005 66,437 70,980 73,530 77,539 86,288' 87,005 31 Chile 5,217 4.353 3,271 3,489 3,430 3,264 3.372 3,373 3,271 3 3 2 3 C Cu ol b o a m bia 2,944 1 2,784 1 2,585 0 2,542 1 2,700 2 2,563 0 2,544 0 2.532 1 2,585 0 34 Ecuador 2,075 1,688 1,387 1,515 1,507 1,498 1,487 1,498 1,387 35 Guatemala4 198 197 191 196 207 215 211 152 191 36 Jamaica4 212 297 238 262 243 254 262 265 238 37 Mexico 24,637 23,376 15,093 14,689 14,953 15,366 15,359 15,380 15,093 38 Netherlands Antilles 1,306 1,921 7,974 1,873 1,632 1,818 3,310 7,386 7,974 39 Panama 2,521 1,740 1,471 1,491 1,491 1,556 1,463 1,449 1,471 40 Peru 1,013 771 663 661 644 649 667 730 663 41 Uruguay 910 928 786 843 834 804 794 787' 786 42 Venezuela 10,733 9.647 2.733 8,064 7,642 7,274 7,102 6,585' 2.733 43 Other Latin America and Caribbean 1,612 1,726 1,335 1,355 1,417 1,523 1,383 1,391 1,335 44 Asia 130,881 157,474 140,191 158,028 157,933 147,568 146,800 142,555 140,191 China Mainland 762 634 620 554 586 542 639 689 620 46 Taiwan 4,184 2,776 1,924 1,583 2,026 1,681 1,061 1,576 1,924 47 Hong Kong 10,143 11,128 10,644 9,434 9,473 9,026 8,478 8,506 10,644 48 India 560 621 655 852 628 867 506 540 655 49 Indonesia 674 651 933 814 836 826 896 923 933 50 Israel 1,136 813 774 738 785 698 688 758 774 51 Japan 90,149 111,300 92,011 114,663 114,973 106,543 106,369 100,071 92,011 52 Korea 5,213 5,323 5.734 5,515 5,614 5,679 5,533 5.533 5.734 53 Philippines 1,876 1,344 1,247 1,342 1,369 1,333 1,206 1,175 1,247 54 Thailand , 848 1,140 1,573 1,242 1,245 1,279 1,444 1,523 1,573 55 Middle East oil-exporting countries' 6,213 10,149 10,984 12,318 10,657 10,430 11,098 10,947 10,984 56 Other Asia 9,122 11,594 13.092 8,971 9,741 8,663 8,883 10,314 13.092 57 Africa 5,718 5,890 5,445 5,567 5,567 5,544 5,601 5,705 5,445 58 Egypt 507 502 380 421 449 430 411 383 380 59 Morocco 511 559 513 544 539 542 534 519 513 60 South Africa 1,681 1,628 1,525 1,560 1,571 1,594 1,576 1,726 1,525 61 Zaire 17 16 16 20 19 20 19 19 16 62 Oil-exporting countries6 1,523 1.648 1,486 1,604 1,586 1,536 1,510 1,492 1,486 63 Other 1,479 1,537 1,525 1,418 1,403 1,422 1,551 1,566 1,525 64 Other countries 2,413 2.354 1,998 1,878 1,938 2,287 1,845 1,843' 1,998 65 Australia 1,520 1,781 1,518 1,422 1,304 1,863 1,416 1,483 1,518 66 All other 894 573 479 456 634 424 429 36C 479 67 Nonmonetary international and regional organizations 2,071 3,439 4,275 3,644 •,030 5,131' 4,806 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 • May 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 1991 TTyyppee ooff ccllaaiimm 11998888 11998899 11999900'' July Aug. Sept. Oct. Nov.' Dec.' Jan.p 1 Total 555555533333338888888,,,,,,,666666688888889999999 555555599999992222222,,,,,,,666666611111116666666 555555588888881111111,,,,,,,777777755555552222222 555555555555558888888,,,,,,,999999944444441111111 555555588888881111111,,,,,,,777777755555552222222 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 444444499999991111111,,,,,,,111111166666665555555 555555533333334444444,,,,,,,000000022222222222222 555555511111112222222,,,,,,,444444466666662222222 488,235 494,987 444444499999993333333,,,,,,,222222233333339999999 494,833 505,266 555555511111112222222,,,,,,,444444466666662222222 499,382 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 66666662222222,,,,,,,666666655555558888888 66666660000000,,,,,,,000000088888887777777 44444442222222,,,,,,,000000077777775555555 47,711 46,738 44444448888888,,,,,,,222222211111118888888 46,350 46,840 44444442222222,,,,,,,000000077777775555555 39,423 44 OOwwnn ffoorreeiiggnn ooffffiicceess22 222222255555557777777,,,,,,,444444433333336666666 222222299999995555555,,,,,,,999999988888880000000 333333300000003333333,,,,,,,222222200000009999999 275,297 273,967 222222277777778888888,,,,,,,888888877777771111111 281,049 290,985 333333300000003333333,,,,,,,222222200000009999999 299,079 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111122222229999999,,,,,,,444444422222225555555 111111133333334444444,,,,,,,888888877777770000000 111111111111119999999,,,,,,,666666622222225555555 128,436 137,784 111111122222224444444,,,,,,,999999988888888888888 124,887 121,373 111111111111119999999,,,,,,,666666622222225555555 119,106 66 DDeeppoossiittss 66666665555555,,,,,,,888888899999998888888 77777778888888,,,,,,,111111188888884444444 66666667777777,,,,,,,888888855555559999999 73,819 80,628 77777772222222,,,,,,,222222266666666666666 72,144 68,394 66666667777777,,,,,,,888888855555559999999 70,613 77 OOtthheerr 66666663333333,,,,,,,555555522222227777777 55555556666666,,,,,,,666666688888886666666 55555551111111,,,,,,,777777766666666666666 54,617 57,156 55555552222222,,,,,,,777777722222222222222 52,743 52,980 55555551111111,,,,,,,777777766666666666666 48,492 88 AAllll ootthheerr ffoorreeiiggnneerrss 44444441111111,,,,,,,666666644444446666666 44444443333333,,,,,,,000000088888884444444 44444447777777,,,,,,,555555555555553333333 36,791 36,499 44444441111111,,,,,,,111111166666662222222 42,547 46,067 44444447777777,,,,,,,555555555555553333333 41,774 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss33...... 44444447777777,,,,,,,555555522222224444444 55555558888888,,,,,,,555555599999994444444 66666669999999,,,,,,,222222299999991111111 66666665555555,,,,,,,777777700000002222222 66666669999999,,,,,,,222222299999991111111 8888888,,,,,,,222222288888889999999 11111113333333,,,,,,,000000011111119999999 11111117777777,,,,,,,222222277777772222222 11111114444444,,,,,,,777777700000007777777 11111117777777,,,,,,,222222277777772222222 11 Negotiable and readily transferable 22222225555555,,,,,,,777777700000000000000 33333330000000,,,,,,,999999988888883333333 33333333333333,,,,,,,444444433333330000000 33333333333333,,,,,,,777777799999991111111 33333333333333,,,,,,,444444433333330000000 12 Outstanding collections and other 11111113333333,,,,,,,555555533333335555555 11111114444444,,,,,,,555555599999992222222 11111118888888,,,,,,,555555588888888888888 11111117777777,,,,,,,222222200000003333333 11111118888888,,,,,,,555555588888888888888 13 MEMO: Customer liability on 11111119999999,,,,,,,555555599999996666666 11111112222222,,,,,,,888888899999999999999 11111113333333,,,,,,,444444488888884444444 11111112222222,,,,,,,888888811111112222222 11111113333333,,,,,,,444444488888884444444 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States 45,565 45,675 42,137 41,000 44,631 43,154 42,827' 48,405 42,137 n.a. 1. Data for banks' own claims are given on a monthly basis, but the data for parent foreign bank. claims of banks' own domestic customers are available on a quarterly basis only. 3. Assets owned by customers of the reporting bank located in the United Reporting banks include all kinds of depository institutions besides commercial States that represent claims on foreigners held by reporting banks for the account banks, as well as some brokers and dealers. of their domestic customers. 2. U.S. banks: includes amounts due from own foreign branches and foreign 4. Principally negotiable time certificates of deposit and bankers acceptances. subsidiaries consolidated in "Consolidated Report of Condition" filed with bank 5. Includes demand and time deposits and negotiable and nonnegotiable regulatory agencies. Agencies, branches, and majority-owned subsidiaries of certificates of deposit denominated in U.S. dollars issued by banks abroad. For foreign banks: principally amounts due from head office or parent foreign bank, description of changes in data reported by nonbanks, see July 1979 Bulletin, and foreign branches, agencies, or wholly owned subsidiaries of head office or p. 550. 3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States1 Payable in U.S. Dollars Millions of dollars, end of period 1990 MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa 11998877 11998888 11998899 Mar. June Sept. Dec." 1 Total 235,130 233,184 237,684 211,809 208,559 213,747 208,606 By borrower 2 Maturity of 1 year or less2 163,997 172,634 177,907 160,299 159,280 166,556 168,559 3 Foreign public borrowers 25,889 26,562 23,493 23,253 20,650 21,560 20,707 4 All other foreigners 138,108 146,071 154,415 137,046 138,630 144,996 147,852 5 Maturity over 1 year 71,133 60,550 59,776 51,510 49,279 47,191 40,047 6 Foreign public borrowers 38,625 35,291 36,014 27,893 27,960 26,217 21,042 7 All other foreigners 32,507 25,259 23,762 23,617 21,320 20,974 19,005 By area Maturity of 1 year or less 8 Europe 59,027 55,909 53,912 48,550 49,421 51,579 49,602 9 Canada 5,680 6,282 5,909 5,698 5,754 5,520 5,436 10 Latin America and Caribbean 56,535 57,991 52,989 46,374 44,293 43,961 49,186 11 35,919 46,224 57,755 51,894 51,182 56,366 56,010 12 Africa 2,833 3,337 3,225 3,165 2,991 2,951 3,040 13 All other3 4,003 2,891 4,118 44,,661166 55,,663399 66,,117799 55,,228866 Maturity of over 1 year 14 Europe 6,696 4,666 4,121 4,389 4,201 4,426 3,882 15 Canada 2,661 1,922 2,353 2,712 2,819 3,033 3,291 16 Latin America and Caribbean 53,817 47,547 45,816 35,530 33,190 31,276 26,074 17 3,830 3,613 4,172 5,552 5,866 5,646 3,865 18 Africa 1,747 2,301 2,630 2,764 2,739 2,544 2,374 19 All other3 2,381 501 684 564 464 265 560 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 Dec. Mar. June Sept. Dec. Mar. June Sept. Dec.p 1 Total 386.5 382.4 346.3 346.1 340.0 346.2 338.4 334.3 322.4r 332.7r 312.5 156.6 159.7 152.7 145.4 145.1 146.4 152.9 147.1 140.2' 144.4' 131.1 8.4 10.0 9.0 8.6 7.8 6.9 6.3 6.6 6.2 6.5 5.8 13.6 13.7 10.5 11.2 10.8 11.1 11.7 10.5 10.3 11.1 10.4 11.6 12.6 10.3 10.2 10.6 10.4 10.5 11.2 11.2 11.2 9.7 9.0 7.5 6.8 5.2 6.1 6.8 7.4 6.0 5.5 4.5 5.0 4.6 4.1 2.7 2.8 2.8 2.4 3.1 3.1 2.7 3.8 2.9 2.4 2.1 1.8 2.3 1.8 2.0 2.0 2.1 2.3 2.4 2.1 5.8 5.6 5.4 5.1 5.4 6.1 7.1 6.3 6.4 5.6 4.7 70.9 68.8 66.2 65.6 64.5 63.7 67.2 64.0 60.0 61.7' 59.8 5.2 5.5 5.0 4.0 5.1 5.9 5.4 4.8 5.2 5.1 5.9 25.1 29.8 34.9 30.5 30.2 31.0 32.2 32.6 30.4 32.5' 24.8 26.1 26.4 21.0 21.1 21.2 21.0 20.7 23.1 22.6 23.0 22.7 1.7 1.9 1.5 1.4 1.7 1.5 1.5 1.5 1.5 1.6 1.4 1.7 1.7 1.1 1.1 1.4 1.1 1.1 1.1 1.1 1.0 1.1 1.4 1.2 1.1 1.0 1.0 1.1 1.0 1.1 .9 .8 .7 2.3 2.0 1.8 2.1 2.3 2.4 2.5 2.6 2.7 2.8 2.7 2.4 2.2 1.8 1.6 1.8 1.4 1.4 1.7 1.4 1.5 1.5 .9 .6 .4 .4 .6 .4 .4 .4 .8 .6 .6 5.8 8.0 6.2 6.6 6.2 6.9 7.1 8.3 7.9 8.5 8.4 2.0 2.0 1.5 1.3 1.1 1.2 1.2 1.3 1.4 1.6 1.6 1.5 1.6 1.3 1.1 1.1 1.0 .7 1.0 1.1 .7 .9 3.0 2.9 2.4 2.2 2.1 2.1 2.0 2.0 1.9 1.9 1.8 3.4 2.4 1.8 2.4 1.9 2.1 1.6 2.1 1.9 2.0 1.9 19.4 17.4 16.6 16.2 16.1 16.2 17.1 15.5 15.3 14.4 13.0 2.2 1.9 1.7 1.6 1.5 1.5 1.3 1.2 1.1 1.1 1.0 8.7 8.1 7.9 7.9 7.5 7.4 7.0 6.1 6.0 6.0 5.0 2.5 1.9 1.7 1.7 1.9 2.0 2.0 2.1 2.0 2.3 2.7 44..33 3.6 3.4 3.3 3.4 3.5 5.0 4.3 4.4 3.3 2.7 11..88 1.9 1.9 1.7 1.6 1.9 1.7 1.8 1.8 1.7 1.7 99.6 97.8 85.3 85.9 83.4 81.2 77.5 68.8 66. r 67. r 65.7 Latin America 9.5 9.5 9.0 8.5 7.9 7.6 6.3 5.5 5.1 4.9 4.9 25.3 24.7 22.4 22.8 22.1 20.9 19.0 17.5 16.7r 15.4r 14.4 34 Chile 7.1 6.9 5.6 5.7 5.2 4.9 4.6 4.3 3.7 3.6 3.5 2.1 2.0 2.1 1.9 1.7 1.6 1.8 1.8 1.7 1.8 1.8 24.0 23.5 18.8 18.3 17.7 17.2 17.7 12.7 12.6 13.1 13.2 1.4 1.1 .8 .7 .6 .6 .6 .5 .5 .5 .5 3.1 2.8 2.6 2.7 2.6 2.9 2.8 2.7 2.3 2.4 2.3 Asia China .4 .3 .3 .5 .3 .3 .3 .3 .2 .2 .2 4.9 8.2 3.7 4.9 5.2 5.0 4.5 3.8 3.6 3.9 3.5 1.2 1.9 2.1 2.6 2.4 2.7 3.1 3.5 3.6 3.6 3.3 1.5 1.0 1.2 .9 .8 .7 .7 .6 .7 .6 .7 43 Korea (South) 6.7 5.0 6.1 6.1 6.6 6.5 5.9 5.3 5.6 6.2 6.1 2.1 1.5 1.6 1.7 1.6 1.7 1.7 1.8 1.8 1.8 1.9 5.4 5.2 4.5 4.4 4.4 4.0 4.1 3.7 3.9 3.9 3.8 .9 .7 1.1 1.0 1.0 1.3 1.3 1.1 1.3 1.5 1.5 .7 .7 .9 .8 .8 1.0 1.0 1.2 1.1 1.6r 1.7 Africa .7 .6 .4 .5 .6 .5 .4 .4 .5 .4 .4 .9 .9 .9 .9 .9 .8 .9 .9 .9 .9 .8 .1 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 51 Other Africa4 1.6 1.3 1.1 1.1 1.1 1.0 1.0 .9 .9 .8 1.1 33..55 3.2 3.6 3.5 3.4 3.5 3.5 3.4 3.0 2.9 1.9 ..11 .3 .7 .7 .6 .8 .7 .8 .4 .4 .2 2.0 1.8 1.8 1.7 1.7 1.7 1.6 1.4 1.4 1.3 1.0 55 Other 1.4 1.1 1.1 1.1 1.1 1.1 1.3 1.3 1.2 1.2 .7 61.5 54.5 44.2 48.5 43.1 49.2 36.6 42.9 40.0 41.9 40.3 22.4 17.3 11.0 15.8 11.0 11.4 5.5 9.2 8.5 8.9 3.5 .6 .6 .9 1.1 .7 1.3 1.7 .9 2.2 4.0 3.7 1122..33 13.5 12.9 12.0 10.8 15.3 8.9 10.9 8.5 9.0 10.1 11..88 1.2 1.0 .9 1.0 1.1 2.3 2.6 2.3 2.2 7.9 4.0 3.7 2.5 2.2 1.9 1.5 1.4 1.3 1.4 1.5 1.4 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 11.1 11.2 9.6 9.6 10.4 10.7 9.7 9.8 10.0 9.0 7.0 9.2 7.0 6.1 6.8 7.3 7.8 7.0 8.0 7.0 7.3r 6.5 65 Others .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 1199..88 23.2 22.6 25.0 27.4 28.5 29.8 33.2 34.4r 38.7' 37.6 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 • May 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 12,424 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 Allother4 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 11,,114433 959 1,019 37 Netherlands 424 423 587 688 548 699 668888 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 42' 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 Type, and area or country 11998866 11998877 11998888 June Sept. Dec. Mar. June Sept. 1 Total 36,265 30,964 34,035 34,420 32,088 31,437 29,708 31,468 30,846 2 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 Financial claims 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 5,616 10 Payable in foreign currencies 1,352 814 777 737 908 754 688 733 652 11 Commercial claims 9,992 10,600 12,166 12,499 12,953 13,748 13,227 13,493 14,319 12 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 13,766r 15 Payable in foreign currencies 462 519 505 560 498 650 573 508 554 By area or country Financial claims 16 Europe 10,744 9,531 10,279 8,919 7,528 7,040 6,949 9,587 7,905 17 Belgium-Luxembourg 41 7 18 161 166 28 22 126 27 18 France 138 332 203 176 173 153 198 141 143 19 Germany 116 102 120 149 120 192 505 93 97 20 Netherlands 151 350 348 297 292 303 315 332 315 21 Switzerland 185 65 218 68 111 95 122 137 176 22 United Kingdom 9,855 8,467 9,039 7,772 6,419 6,035 5,572 8,539 6,926 23 Canada 4,808 2,844 2,325 2,568 2,359 1,892 1,758 2,040 1,994 24 Latin America and Caribbean 9,291 7,012 8,160 9,319 8,315 7,590 6,921 5,431 5,666 25 Bahamas 2,628 1,994 1,846 1,875 1,699 1,516 1,599 920 969 26 Bermuda 6 7 19 33 33 7 4 3 12 27 Brazil 86 63 47 78 70 224 79 84 70 28 British West Indies 6,078 4,433 5,763 6,923 6,125 5,431 4,824 4,027 4,215 29 Mexico 174 172 151 114 105 94 152 153 158 30 Venezuela 21 19 21 31 36 20 21 20 23 31 Asia 1,317 879 844 995 826 831 763 815 832 32 Japan 999 605 574 525 460 439 416 473 450 33 Middle East oil-exporting countries' 7 8 5 8 7 8 7 6 9 34 Africa . 85 65 106 80 75 140 67 62 49 28 7 10 8 8 12 11 8 7 35 Oil-exporting countries' 28 33 155 40 31 195 23 41 81 36 All other4 Commercial claims 3,725 4,180 5,181 5,302 5,429 6,168 6,026 6,041 6,427 37 Europe 133 178 189 205 220 241 219 207 189 38 Belgium-Luxembourg 431 650 672 775 829 956 958 908 1,140 39 France 444 562 669 675 686 687 699 662 638 40 Germany 164 133 212 413 396 478 450 475 490 41 Netherlands 217 185 344 231 222 305 270 235 300 42 Switzerland 999 1,073 1,324 1,372 1,398 1,572 1,690 1,586 1,675 43 United Kingdom 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 Bahamas 28 19 36 13 10 57 22 17 25 47 Bermuda 193 170 230 238 271 323 243 284 340 48 Brazil 234 226 299 315 239 292 231 233 252 49 British West Indies 39 26 22 30 33 36 38 46 35 50 Mexico 412 368 461 439 509 509 525 594 649 51 Venezuela 237 283 227 229 189 147 188 222 223 52 Asia 2,755 2,915 2,993 3,154 3,316 3,538 3,257 3,379 3,568 53 Japan 881 1,158 946 999 1,176 1,184 1,061 1,046 1,209 54 Middle East oil-exporting countries' 563 450 453 434 410 515 432 414 403 55 Africa . 500 401 435 408 399 418 425 390 372 56 Oil-exporting countries3 139 144 122 112 87 107 89 98 71 57 All other4 222 238 333 351 383 389 367 360 429 1. For a description of the changes in the International Statistics tables, see 3. Comprises Algeria, Gabon, Libya, and Nigeria. July 1979 Bulletin, p. 550. 4. Includes nonmonetary international and regional organizations. 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 International Statistics • May 1991 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1990 1990 1991 Transactions, and area or country 1989 1990' Jan.- Jan. July Aug. Sept. Oct. Nov. Dec/ Jan/ U.S. corporate securities STOCKS 1 Foreign purchases 214,061 173,031 10,235 17,447 20,653 8,812 11,636 12,551 13,313 10,235 2 Foreign sales 204,114 188,332 11,048 16,080 21,959 11,318 15,437 13,368 14,573 11,048 3 Net purchases, or sales (—) 9,946 -15,300 -812 1,367 -1,306 -2,506 -3,801 -817 -1,260 -812 4 Foreign countries 10,180 -15,372 -814 1,315 -1,343 -2,452 -3,759 -812 -1,269 -814 5 Europe 481 -8,579 -616 -12 -1,379 -1,160 -1,415 -582 -489 -616 6 France -708 -1,183 -24 -25 -175 -148 -159 -80 -49 -24 7 Germany -830 -370 -114 -41 -119 2 -87 -14 -144 -114 8 Netherlands 79 -407 -142 -30 -107 -48 -61 21 -46 -142 9 Switzerland -3,277 -2,884 -222 -170 -253 -126 -213 -169 -263 -222 10 United Kingdom 3,691 -3,122 -99 252 -637 -718 -688 -282 147 -99 11 Canada -881 889 24 174 330 210 155 216 279 24 12 Latin America and Caribbean 3,042 -1,345 233 -90 -242 -218 -357 292 -280 233 13 Middle East' 3,531 -2,447 -279 -36 187 -437 -558 -430 -251 -279 14 Other Asia 3,577 -3,505 -197 1,056 -69 -712 -1,517 -420 -406 -197 15 Japan 3,330 -2,907 -272 851 22 -737 -1,135 -194 -382 -272 16 Africa 131 -60 33 13 16 1 -31 -5 -14 33 17 Other countries 299 -325 -13 211 -186 -135 -35 117 -108 -13 18 Nonmonetary international and regional organizations -234 71 2 52 37 -55 -42 -5 9 2 BONDS2 19 Foreign purchases 120,540 118,586 8,840 10,915 11,846 7,484 8,699 11,205' 9,935 8,840 20 Foreign sales 86,568 99,526 8,350 7,553 12,465 9,354 7,385 7,738' 8,053 8,350 21 Net purchases, or sales (—) 33,972 19,059 490 3,362 -618 -1,870 1,314 3,468r 1,883 490 22 Foreign countries 33,619 19,515 309 3,323 -588 -1,900 1,551 3,472' 1,885 309 23 Europe 19,823 12,133 76 1,996 706 -819 667 1,918' 1,078 76 24 France 372 373 31 54 -40 -103 -74 24 39 31 25 Germany -238 -305 -54 33 172 3 -29 -59 -41 -54 26 Netherlands 850 178 47 37 -15 -71 35 52 110 47 27 Switzerland -189 561 360 570 -346 0 -84 20' 45 360 28 United Kingdom 18,459 11,526 -56 1,145 722 -275 371 1,727 1,3% -56 29 Canada 1,116 1,866 71 70 91 -87 127 237 -250 71 30 Latin America and Caribbean 3,686 4,204 -17 273 -103 -208 214 343 500 -17 31 Middle East1 -182 152 69 13 -178 -65 -10 -35 74 69 32 Other Asia 9,063 1,389 131 999 -986 -692 603 1,033' 486 131 33 Japan 6,331 1,010 308 930 -632 -871 361 812' 399 308 34 Africa 56 87 -15 -4 -1 5 2 6 -9 -15 35 Other countries 57 -316 -5 -24 -118 -34 -53 -30 7 -5 36 Nonmonetary international and regional organizations 353 -455 181 39 -31 30 -237 -4 -2 181 Foreign securities 37 Stocks, net purchases, or sales (-)3 -13,097 -8,658 -429 -1,135 -142 446 -314 1,068' -1,844 -429 38 Foreign purchases 109,789 122,444 6,188 11,425 12,360 7,522 9,277 10,06c 7,244 6,188 39 Foreign sales 122,886 131,103 6,617 12,559 12,502 7,076 9,591 8,993' 9,088 6,617 40 Bonds, net purchases, or sales (-) -6,049 -22,406 -152 -400 48 -599 -2,830 50' -4,261 -152 41 Foreign purchases 234,215 314,268 26,970 23,367 29,826 25,746 35,254 32,839' 33,411 26,970 42 Foreign sales 240,264 336,674 27,122 23,767 29,778 26,346 38,085 32,788' 37,672 27,122 43 Net purchases, or sales (-), of stocks and bonds -19,145 -31,064 -582 -1,535 -94 -153 -3,144 l.liy -6,105 -582 44 Foreign countries -19,178 -28,380 -543 -1,564 -538 -428 -2,340 l,093r -5,363 -543 45 Europe -17,811 -8,247 339 -390 -1,303 -73 -910 1,917' -919 339 46 Canada -4,180 -6,%9 -574 -328 167 -4 -880 -1,755' -172 -574 47 Latin America and Caribbean 426 -8,937 350 -222 -64 -401 229 283 -2,802 350 48 2,540 -3,829 -792 -211 606 -323 -697 706' -1,571 -792 49 Africa 93 -137 22 -83 -8 12 4 -69 28 22 50 Other countries -246 -261 112 -331 65 362 -87 11' 73 112 51 Nonmonetary international and regional organizations 33 -2,684 -39 30 444 275 -804 25 -742 -39 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 1991 Country or area 1989 1990 Jan.- July Aug. Sept. Oct. Nov. Dec.' Jan." Jan. Transactions, net purchases or sales (-) during period1 1 Estimated total2 54,198 19,760 2,797 5,488 4,609 936 -1,134 S,9lSr 2 Foreign countries2 52.296 20,114' 4,482 5,331 3,968 1,293 -1,107 5,580' 3 Europe2 36,286 18,726' 3,250 3,643 -2,128 5,021 275 2,119' 1 1 1 5 6 7 9 4 8 1 0 2 Ca O G E U S S N B n w w a e a n e e th l r s t d i i e g h t t t m e a d e e z i r e u r d e e a r n m r n W n la l K y a - E n e L n i s d u n d u t s g r e 2 x o d r e p n o m e m E b u o r u o r p g e - 2 1 7 6 0 1 1 , , , , 1 - , , 5 9 1 0 6 6 0 2 4 0 0 9 9 9 9 4 1 1 8 4 8 8 3 8 8 - - 1 2 4 5 2 1 , , , 1 , , 5 - 7 1 9 8 1 1 5 5 5 5 8 8 0 1 6 9 6 0 6 0 6 7 3 ' r 2 - - - , 7 5 6 7 9 2 3 1 9 6 6 5 6 2 6 7 5 7 1 7 6 0 6 0 0 2 - 1 1 , 7 , , 8 0 4 1 1 1 - 9 8 5 1 3 9 7 1 9 0 4 1 8 3 6 9 -3 - - - 1 - 1 1 , 1 2 3 2 , , , 7 1 2 4 5 2 9 6 7 7 5 2 1 8 1 5 6 6 7 3 4 1 - 1 1 8 - - , , 6 9 5 4 5 3 9 6 3 5 4 0 9 3 5 8 0 3 6 8 7 9 -1 - 1 - , 6 4 7 , 5 6 0 1 3 5 4 8 1 4 7 6 7 4 7 0 1 7 3 2 3 -1 2 - - 1 , 2 , 4 , - 5 0 2 6 - - 6 4 6 8 6 7 7 6 5 7 3 9 1 9 7 9 ' 1 1 3 4 La V ti e n n A ez m u e e r la ic a and Caribbean 4 31 5 1 9 15 - ,8 5 4 0 6 ' -5 - , 1 1 5 5 3 0 1,9 - 3 1 4 1,31 0 9 -1, - 9 4 5 9 3 4,6 - 7 1 6 4,30 4 6 9 15 Other Latin America and Caribbean -327 5,108' -592 1,060 295 -1,157 591 967 16 Netherlands Antilles 475 10,788 -4,405 874 1,023 -747 4,086 3,290 17 Asia 13.297 -ll^ 6,997 -1,672 3,304 -1,751 -5,192 -931' 18 Japan 1,681 -14,881 2,244 161 2,376 -2,092 -4,059 -1,154 19 Africa 116 332 78 17 57 151 83 8 20 All other 1,439 824 102 -9 239 692 -313 543 21 Nonmonetary international and regional organizations 1,902 -354 -1,685 158 641 -357 -27 335 2 2 2 3 I L n a t t e i r n n a A t m ion er a i l c a regional 1,4 23 7 1 3 -1 - 5 2 0 -1 - , 2 6 0 2 2 4 -2 2 5 5 44 2 4 5 -1 -7 5 5 4 - - 8 5 7 9 20 0 9 Memo 24 Foreign countries2 52,296 20,114' 4,482 5,331 3,968 1,293 -1,107 5,580' 25 Official institutions 26,835 24,103' 2,248 724 6,794 3,799 1,382 4,771' 26 Other foreign2 25,461 -3,989' 2,234 4,607 -2,826 -2,506 -2,489 Oil-exporting countries 2 2 8 7 A M f i r d i d ca le 4 East3 8,1 - 4 1 8 -383 0 52 0 3 -2,095 0 -365 0 24 0 1 -1,247 0 -878 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 • May 1991 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per year Rate on Mar. 31, 1991 Rate on Mar. 31, 1991 Rate on Mar. 31, 1991 CCoouunnttrryy CCoouunnttrryy CCoouunnttrryy Percent e M ffe o c n t t i h ve Percent e M ffe o c n t t i h ve Percent e M ffe o c n t t iv h e 66666.....55555 OOOOOcccccttttt..... 11111999998888899999 99999.....00000 MMMMMaaaaarrrrr..... 11111999999999900000 111000...555000 JJJuuulllyyy 111999999000 1111100000.....55555 NNNNNooooovvvvv..... 11111999998888899999 GGeerrmmaannyy,, FFeedd.. RReepp.. ooff...... 66666.....5555500000 FFFFFeeeeebbbbb..... 11111999999999911111 666...000 OOOcccttt... 111999888999 99999.....9999922222 MMMMMaaaaarrrrr..... 11111999999999911111 IIttaallyy 1111122222.....55555 MMMMMaaaaayyyyy 11111999999999900000 99999.....5555500000 JJJJJaaaaannnnn..... 11111999999999911111 66666.....00000 AAAAAuuuuuggggg..... 11111999999999900000 Netherlands 77777.....7777755555 FFFFFeeeeebbbbb..... 11111999999999911111 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 Sept. Oct. Nov. Dec. Jan. Feb. Mar. 1 Eurodollars 7.85 9.16 8.16 8.07 8.06 8.04 7.87 7.23 6.60 6.44 2 United Kingdom 10.28 13.87 14.73 14.88 14.02 13.57 13.75 13.91 13.20 12.33 3 Canada 9.63 12.20 13.00 12.63 12.58 12.36 11.95 11.13 10.37 9.97 4 Germany 4.28 7.04 8.41 8.39 8.51 8.79 9.17 9.25 8.96 8.99 5 Switzerland 2.94 6.83 8.71 8.11 7.88 8.39 8.65 8.44 7.81 8.17 6 Netherlands 4.72 7.28 8.57 8.42 8.39 8.73 9.27 9.31 9.01 9.04 7 France 7.80 9.27 10.20 10.24 9.92 9.88 10.14 10.14 9.64 9.34 8 Italy 11.04 12.44 12.11 10.65 11.40 12.42 13.45 13.13 13.31 12.52 9 Belgium 6.69 8.65 9.70 9.04 8.89 9.03 9.81 9.91 9.51 9.28 10 Japan 4.43 5.39 7.75 8.37 8.26 8.35 8.27 8.18 8.01 8.09 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 1990 Country/currency 1989 1990 Oct. Nov. Dec. Mar. 1 Australia/dollar2 78.409 79.186 78.069 80.060 77.290 77.019 77.930 78.351 77.107 2 Austria/schilling 12.357 13.236 11.331 10.719 10.451 10.539 10.616 10.416 11.341 3 Belgium/franc 36.785 39.409 33.424 31.373 30.647 31.014 31.088 30.475 33.206 4 Canada/dollar 1.2306 1.1842 1.1668 1.1600 1.1635 1.1603 1.1560 1.1549 1.1572 5 China, P.R./yuan 3.7314 3.7673 4.7921 4.7339 4.9714 5.2352 5.2352 5.2352 5.2352 6 Denmark/krone 6.7412 7.3210 6.1899 5.8117 5.6946 5.7735 5.8115 5.6953 6.1886 7 Finland/markka 4.1933 4.2963 3.8300 3.6187 3.5644 3.6341 3.6431 3.5941 3.8512 8 France/franc 5.9595 6.3802 5.4467 5.1032 5.0020 5.0895 5.1253 5.0398 5.4862 9 Germany/deutsche mark. 1.7570 1.8808 1.6166 1.5238 1.4857 1.4982 1.5091 1.4805 1.6122 10 Greece/drachma 142.00 162.60 158.59 153.17 152.27 156.08 159.70 158.82 174.16 11 Hong Kong/dollar 7.8072 7.8008 7.7899 7.7722 7.7951 7.8034 7.7950 7.7943 7.7911 12 India/rupee 13.900 16.213 17.492 18.074 18.098 18.127 18.339 18.860 19.243 13 Ireland/punt2 152.49 141.80 165.76 176.04 180.18 177.77 168.68 179.81 157.43 14 Italy/lira 1,302.39 1,372.28 1,198.27 1,141.62 1,117.04 1,129.26 1,134.38 1,111.19 1,201.% 15 Japan/yen 128.17 138.07 145.00 129.59 129.22 133.89 133.70 130.54 137.39 16 Malaysia/rinegit 2.6190 2.7079 2.7057 2.6995 2.6949 2.7030 2.7140 2.6%9 2.7418 17 Netherlands/guilder 1.9778 2.1219 1.8215 1.7180 1.6761 1.6904 1.7015 1.6689 1.8174 18 New Zealand/dollar2 65.560 59.354 59.619 61.129 61.120 59.574 59.476 60.120 59.389 19 Norway/krone 6.5243 6.9131 6.2541 5.8241 5.79% 5.8717 5.8993 5.7919 6.2899 20 Portugal/escudo 144.27 157.53 142.70 134.41 130.87 132.82 134.43 130.45 140.97 21 Singapore/dollar 2.0133 1.9511 1.8134 1.7257 1.7100 1.7275 1.7455 1.7180 1.7589 22 South Africa/rand 2.2770 2.6214 2.5885 2.5445 2.5247 2.5395 2.5643 2.5412 2.6636 23 South Korea/won 734.52 674.29 710.64 717.76 717.03 718.58 720.83 723.97 727.73 24 Spain/peseta 116.53 118.44 101.96 95.59 94.07 95.75 95.08 92.61 100.21 25 Sri Lanka/rupee 31.820 35.947 40.078 40.285 40.355 40.244 40.300 40.598 40.750 26 Sweden/krona 6.1370 6.4559 5.9231 5.6411 5.5633 5.6338 5.6345 5.5516 5.9081 27 Switzerland/franc 1.4643 1.6369 1.3901 1.2818 1.2569 1.2814 1.2714 1.2685 1.3918 28 Taiwan/dollar 28.636 26.407 26.918 27.288 27.245 27.162 27.197 27.109 27.311 29 Thailand/baht 25.312 25.725 25.609 25.130 25.078 25.208 25.244 25.141 25.447 30 United Kingdom/pound2, 178.13 163.82 178.41 194.56 196.42 192.19 193.46 1%.41 182.14 31 M Un E i M te O d States/dollar3 92.72 98.60 89.09 83.43 82.12 83.35 83.51 82.12 8.12 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 March 31,1990 January 1991 A72 June 30,1990 February 1991 A72 September 30,1990 March 1991 A72 December 31,1990 May 1991 A72 Terms of lending at commercial banks February 1990 September 1990 A73 May 1990 December 1990 A72 August 1990 December 1990 A77 November 1990 April 1991 A73 Assets and liabilities ofU. S. branches and agencies of foreign banks December 31,1989 August 1990 A72 March 31,1990 September 1990 A78 June 30,1990 December 1990 A82 September 30,1990 February 1991 A78 Pro forma balance sheet and income statements for priced service operations June 30,1989 February 1990 A78 September 30,1989 March 1990 A88 March 31,1990 September 1990 A82 June 30,1990 October 1990 A72 Special table follows. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Special Tables • May 1991 4.20 DOMESTIC AND FOREIGN OFFICES, Insured Commercial Bank Assets and Liabilities1 2 Consolidated Report of Condition, December 31, 1990 Millions of dollars Banks with domestic Banks with foreign offices offices only IItteemm TToottaall Total Foreign Domestic Over 100 Under 100 1 Total assets' 3,367,795 1,901,538 410,659 1,559,302 1,078,452 387,805 2 Cash and balances due from depository institutions 314,652 217,412 83,874 133,539 70,901 26,338 3 Cash items in process of collection, unposted debits, and currency and coin n.a. 95,036 1,702 93,334 37,009 n.a. 4 Cash items in process of collection and unposted debits n.a. n.a. n.a. 75,506 25,219 n.a. 5 Currency and coin n.a. n.a. n.a. 17,829 11,790 n.a. 6 Balances due from depository institutions in the United States n.a. 30,688 16,971 13,717 19,934 n.a. 7 Balances due from banks in foreign countries and foreign central banks n.a. 68,171 65,006 3,165 2,474 n.a. 8 Balances due from Federal Reserve Banks n.a. 23,518 195 23,323 11,484 n.a. MEMO 9 Noninterest-bearine balances due from commercial banks in the United States (included in balances due from depository institutions in the United States) n.a. n.a. n.a. 9,444 14,709 9,874 10 Total securities, loans and lease financing receivables, net 2,788,467 1,487,835 n.a. n.a. 955,277 345,355 11 Total securities, book value 600,846 247,361 32,669 214,692 236,156 117,330 12 U.S. Treasury securities and U.S. government agency and corporation 423,134 158,159 33,,000044 115555,,115555 117733,,662211 9911,,335544 13 U.S. Treasury securities n.a. 42,616 821 41,795 69,580 n.a. 14 U.S. government agency and corporation obligations n.a. 115,544 2,183 113,361 104,041 n.a. 15 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 146,063 76,267 1,836 74,431 4488,,998833 2200,,881133 16 All other n.a. 39,277 347 38,930 55,058 n.a. 17 Securities issued by states and political subdivisions in the United States 82,951 29,477 1,005 28,472 36,600 16,874 18 Other domestic debt securities n.a. 27,453 1,460 25,993 21,973 n.a. 19 All holdings of private certificates of participation in pools of residential mortgages 3,668 1,900 87 11,,881133 11,,333377 443311 70 All other domestic debt securities 53,619 25,553 1,373 24,180 20,636 7,431 21 Foreign debt securities n.a. 28,152 26,119 2,033 385 n.a. 22 Equity securities 8,937 4,120 1,081 3,039 3,577 1,240 73 Marketable 4,437 996 301 695 2,540 901 74 Investments in mutual funds 1,906 249 32 217 837 819 75 Other 2,992 936 269 668 1,883 174 76 Less: Net unrealized loss 461 190 0 190 179 92 27 Other equity securities 4,500 3,124 780 2,344 1,036 339 28 Federal funds sold and securities purchased under agreements to resell 146,128 70,228 568 69,659 50,412 25,488 29 Federal funds sold 124,471 53,404 n.a. n.a. 46,057 25,009 30 Securities purchased under agreements to resell 21,657 16,823 n.a. n.a. 4,355 479 31 Total loans and lease financing receivables, gross 2,109,804 1,214,380 208,760 1,005,620 687,593 207,831 32 LESS: Unearned income on loans 13,168 5,453 1,491 3,963 5,789 1,926 33 Total loans and leases (net of unearned income) 2,0%,637 1,208,927 207,269 1,001,658 681,804 205,905 34 LESS: Allowance for loan and lease losses 54,900 38,437 n.a. n.a. 13,095 3,368 35 LESS: Allocated transfer risk reserves 244 243 n.a. n.a. 0 1 36 EQUALS: Total loans and leases, net 2,041,493 1,170,247 n.a. n.a. 668,709 202,537 Total loans, gross, by category 37 Loans secured by real estate 824,659 413,779 26,585 387,193 330066,,884444 110044,,003377 38 n.a. n.a. n.a. 80,211 37,642 7,6% 39 n.a. n.a. n.a. 2,132 5,383 9,708 40 1-4 family residential properties n.a. n.a. n.a. 184,136 156,380 57,512 41 Revolving, open-end loans, extended under lines of credit n.a. n.a. n.a. 33,226 24,658 3,439 42 All other loans n.a. n.a. n.a. 150,910 131,721 54,072 43 Multifamily (5 or more) residential properties n.a. n.a. n.a. 10,615 8,127 2,082 44 n.a. n.a. n.a. 110,099 99,311 27,039 45 50,942 40,948 15,387 25,562 9,506 487 46 To commercial banks in the United States n.a. 21,311 610 20,701 9,028 n.a. 47 To other depository institutions in the United States n.a. 1,842 109 1,733 462 n.a. 48 To banks in foreign countries n.a. 17,795 14,668 3,128 16 n.a. 49 Loans to finance agricultural production and other loans to farmers 33,221 5,941 304 5,636 8,442 18,839 50 Commercial and industrial loans 612,014 429,679 103,591 326,088 142,691 39,645 51 To U.S. addressees (domicile) n.a. 347,789 23,404 324,385 142,324 n.a. 52 To non-U.S. addressees (domicile) n.a. 81,890 80,187 1,703 366 n.a. 53 3,859 665 301 365 1,527 1,666 54 U.S. banks n.a. 312 64 248 n.a. n.a. 55 n.a. 353 236 117 n.a. n.a. 56 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 399,039 169,118 17,194 151,924 190,751 39,170 57 Credit cards and related plans 132,739 53,169 n.a. n.a. 77,009 2,561 58 Other (includes single payment and installment) 266,300 115,949 n.a. n.a. 113,742 36,609 59 Obligations (other than securities) of states and political subdivisions in the U.S. (includes nonrated industrial development obligations) 33,897 19,714 273 19,441 1122,,663388 11,,554455 60 Taxable 1,333 877 120 757 397 60 61 32,564 18,837 152 18,685 12,241 1,486 6? 114,212 102,738 40,953 61,785 9,624 1,850 63 Loans to foreign governments and official institutions n.a. 25,262 23,953 1,309 116 n.a. 64 n.a. 77,476 17,000 60,476 9,508 n.a. 65 Loans for purchasing and carrying securities n.a. n.a. n.a. 11,025 1,489 n.a. 66 All other loans n.a. n.a. n.a. 49,451 8,019 n.a. 67 Lease financing receivables 37,%2 31,798 4,173 27,625 5,572 592 68 Assets held in trading accounts 47,881 46,133 24,059 22,038 1,548 200 69 Premises and fixed assets (including capitalized leases) 51,015 28,078 n.a. n.a. 16,491 6,447 70 Other real estate owned 21,387 12,507 n.a. n.a. 6,557 2,323 71 Investments in unconsolidated subsidiaries and associated companies 2,655 2,228 n.a. n.a. 366 61 72 Customers' liability on acceptances outstanding 21,709 21,331 n.a. n.a. 359 18 73 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs n.a. n.a. n.a. 47,328 n.a. n.a. 74 10,506 6,194 n.a. n.a. 3,959 354 75 109,524 79,821 n.a. n.a. 22,993 6,710 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A73 4.20—Continued Banks with domestic Banks with foreign offices offices only Item Total Foreign Domestic Over 100 Under 10C 76 Total liabilities, limited-life preferred stock, and equity capital 3,367,795 1,901,538 n.a. n.a. 1,078,452 387,805 77 Total liabilities7 3,150,282 1,797,487 411,512 1,454,399 999,584 353,211 78 Limited-life preferred stock 6 0 n a. n.a. 4 2 79 Total deposits 2,631,395 1,403,811 293,391 1,110,419 883,108 344,476 80 Individuals, partnerships, and corporations n.a. n.a. 186,957 1,017,482 819,598 317,015 81 U.S. government n a. n.a. n a. 5,743 2,536 825 82 States and political subdivisions in the United States n a. n.a. n.a. 38,692 43,310 22,172 83 Commercial banks in the United States n a. n a. n.a. 23,565 8,530 1,141 84 Other depository institutions in the United States n a. n.a. n.a. 4,806 2,808 964 85 Banks in foreign countries n.a. n a. n.a. 7,537 118 n.a. 86 Foreign governments and official institutions n.a. 19,346 18,062 1,284 54 n.a. 87 Certified and official checks 20,644 12,173 863 11,310 6,155 2,316 88 All other8 87,510 n.a. n.a. 43 89 Total transaction accounts 354,829 234,106 90,851 90 Individuals, partnerships, and corporations 297,520 205,864 80,595 91 U.S. government 4,734 2,252 718 92 States and political subdivisions in the United States 10,717 11,827 6,388 93 Commercial banks in the United States 19,282 6,656 561 94 Other depository institutions in the United States 3,336 1,243 252 95 Banks in foreign countries 7,036 93 n.a. 96 Foreign governments and official institutions 893 16 n.a. 97 Certified and official checks 11,310 6,155 2,316 98 All other n.a. n.a. 22 99 Demand deposits (included in total transaction accounts) 270,478 142,914 47,390 100 Individuals, partnerships, and corporations 216,043 121,443 41,682 101 U.S. government 4,699 2,234 705 102 States and political subdivisions in the United States 7,883 5,091 1,863 103 Commercial banks in the United States 19,282 6,654 561 104 Other depository institutions in the United States n a. n.a. 3,336 1,228 241 105 Banks in foreign countries n a. 7,034 93 n.a. 106 Foreign governments and official institutions 891 16 n.a. 107 Certified and official checks 11,310 6,155 2,316 108 All other n.a. n.a. 22 109 Total nontransaction accounts 755,591 649,002 253,625 110 Individuals, partnerships, and corporations 719,962 613,734 236,421 111 U.S. government 1,009 284 107 112 States and political subdivisions in the United States 27,974 31,482 15,784 113 Commercial banks in the United States 4,283 1,874 580 114 U.S. branches and agencies of foreign banks 368 205 n.a. 115 Other commercial banks in the United States 3,916 1,670 n.a. 116 Other depository institutions in the United States 1,470 1,565 712 117 Banks in foreign countries 501 24 n.a. 118 Foreign branches of other U.S. banks 1 18 n.a. 119 Other banks in foreign countries 500 7 n.a. 120 Foreign governments and official institutions 391 37 n.a. 121 All other n.a. n.a. 21 122 Federal funds purchased and securities sold under agreements to repurchase. 244,390 176,085 959 175,126 65,167 3,139 123 Federal funds purchased 153,877 116,790 n.a. n.a. 35,919 1,168 124 Securities sold under agreements to repurchase 90,514 59,295 n.a. n.a. 29,248 1,971 125 Demand notes issued to the U.S. Treasury n. a. n a. n.a. 17,818 4,899 497 126 Other borrowed money 114,149 85,709 32,357 53,353 27,651 788 127 Banks liability on acceptances executed and outstanding 21,909 21,532 4,342 17,189 359 18 128 Notes and debentures subordinated to deposits 23,740 22,035 n. a. n.a. 1,585 120 129 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs.. n. a. n.a. n. a. 21,096 n.a. n.a. 130 All other liabilities 91,485 70,497 n. a. n.a. 16,815 4,173 131 Total equity capital9 217,507 104,051 n. a. n.a. 78,864 34,592 MEMO 132 Holdings of commercial paper included in total loans, gross 505 350 155 2,498 n.a. 133 Total individual retirement accounts (IRA) and Keogh plan accounts 58,995 53,994 18,982 134 Total brokered deposits 51,344 20,337 761 135 Total brokered retail deposits 24,159 14,684 703 136 Issued in denominations of $100,000 or less 4,489 4,404 572 137 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 19,670 10,281 132 Savings deposits 138 Money market deposit accounts (MMDAs) 204,615 134,354 38,192 139 Other savings deposits (excluding MMDAs) 88,944 79,091 29,014 140 Total time deposits of less than $100,000 257,028 309 145,926 141 Time certificates of deposit of $100,000 or more n.a. 174,943 121,984 39,191 142 Open-account time deposits of $100,000 or more 30,061 4,554 1,302 143 All NOW accounts (including Super NOW) n.a. n.a. 83,452 89,541 42,214 144 Total time and savings deposits 839,942 740,194 297,086 Quarterly averages 145 Total loans 978,391 672,684 202,286 146 Obligations (other than securities) of states and political subdivisions in the United States 20,375 12,677 n.a. 147 Transaction accounts in domestic offices (NOW accounts, ATS accounts, and telephone and preauthorized transfer accounts) 78,922 86,983 41,653 Nontransaction accounts in domestic offices 148 Money market deposit accounts (MMDAs) 201,571 134,309 37,982 149 Other savings deposits 88,120 78,524 28,766 150 Time certificates of deposit of $100,000 or more 176,857 124,304 38,819 151 All other time deposits 286,251 309,934 145,705 152 Number of banks 12,316 232 n.a. 2,615 9,469 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Special Tables • May 1991 4.21 DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or more or with foreign offices1-2-6 Consolidated Report of Condition, December 31, 1990 Millions of dollars Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 1 Total assets6 2,637,755 2,063,367 1,656,503 406,864 574,388 2 Cash and balances due from depository institutions 204,440 170,172 137,295 32,877 34,268 3 Cash items in process of collection and unposted debits 100,724 90,508 72,772 17,736 10,216 4 Currency and coin 29,619 24,444 20,463 3,981 5,175 Balances due from depository institutions in the United States 33,651 21,533 16,767 4,766 12,118 6 Balances due from banks in foreign countries and foreign central banks 5,639 4,410 3,804 606 1,229 7 Balances due from Federal Reserve Banks 34,807 29,278 23,489 5,788 5,529 8 Total securities, loans and lease financing receivables, (net of unearned income) 2,254,381 1,742,412 1,417,874 324,538 511,968 9 Total securities, book value 450,847 334,427 260,098 74,329 116,420 10 U.S. Treasury securities 111,374 74,973 60,429 14,544 36,401 11 U.S. government agency and corporation obligations 217,402 170,533 134,548 35,984 46,869 12 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 123,414 102,657 82,754 19,903 2200,,775577 13 All other 93,988 67,876 51,794 16,081 26,112 14 Securities issued by states and political subdivisions in the United States 65,072 48,862 36,624 12,238 16,210 15 Other domestic debt securities 47,966 34,304 24,594 9,710 13,661 16 All holdings of private certificates of participation in pools of residential mortgages 3,150 2,358 2,158 200 791 17 All other 44,816 31,946 22,436 9,510 12,870 18 Foreign debt securities 2,418 2,052 976 1,076 365 19 6,616 3,703 2,926 776 2,913 20 Marketable 3,236 812 637 175 2,424 21 Investments in mutual funds 1,054 532 492 40 522 T> 2,550 345 188 157 2,206 23 Less: Net unrealized loss 369 65 43 22 304 24 3,380 2,891 2,289 602 489 25 Federal funds sold and securities purchased under agreements to resell10 120,072 96,764 79,004 17,760 23,308 26 Federal funds sold 46,057 29,451 25,511 3,940 16,606 27 Securities purchased under agreements to resell 4,355 3,070 2,681 389 1,285 28 Total loans and lease financing receivables, gross 1,693,213 1,318,371 1,084,575 233,796 374,842 29 LESS; Unearned income on loans 9,751 7,150 5,803 1,347 2,601 30 Total loans and leases (net of unearned income) 1,683,462 1,311,221 1,078,772 232,449 372,241 Total loans, gross, by category 31 Loans secured by real estate 694,037 524,487 447,803 7766,,668844 116699,,555500 32 Construction and land development 117,854 93,232 77,323 15,910 24,621 33 Farmland 7,515 4,818 4,207 611 2,696 34 1-4 family residential properties 340,515 256,179 219,918 36,261 84,336 35 Revolving, open-end and extended under lines of credit 57,884 44,528 37,247 7,281 13,356 36 All other loans 282,631 211,651 182,671 28,980 70,980 37 Multifamily (5 or more) residential properties 18,742 14,086 12,149 1,938 4,656 38 Nonfarm nonresidential properties 209,411 156,172 134,207 21,964 53,239 39 Loans to commercial banks in the United States 29,729 21,131 13,306 7,825 8,599 40 Loans to other depository institutions in the United States 2,195 1,933 1,819 114 262 41 Loans to banks in foreign countries 3,144 3,068 1,335 1,733 76 42 Loans to finance agricultural production and other loans to farmers 14,078 10,544 9,561 983 3,533 43 468,779 383,695 306,759 76,937 85,083 44 To U.S. addressees (domicile) 466,709 381,912 305,444 76,468 84,798 45 To non-U.S. addressees (domicile) 2,069 1,784 1,315 469 286 46 Acceptances of other banks11 1,892 1,073 910 163 819 47 Of U.S. banks 774 450 384 66 324 48 161 112 108 4 49 49 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 342,675 225511,,553333 221122,,882222 3388,,771111 9911,,114422 50 Credit cards and related plans 77,009 42,918 40,244 2,675 34,090 51 Other (includes single payment and installment) 113,742 69,390 58,686 10,705 44,352 52 Loans to foreign governments and official institutions 1,425 1,378 984 395 47 53 Obligations (other than securities) of states and political subdivisions in the United States 32,079 26,675 20,101 6,573 5,405 54 1,153 982 729 253 171 55 30,926 25,692 19,372 6,320 5,234 56 69,984 64,476 45,496 18,980 5,507 57 Loans for purchasing and carrying securities 12,514 11,589 7,257 4,333 925 58 57,469 52,887 38,239 14,648 4,583 59 33,197 28,378 23,679 4,698 4,819 60 Customers' liability on acceptances outstanding 17,206 16,032 11,881 4,151 1,173 61 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs 47,328 41,828 20,129 21,699 5,500 62 161,728 134,749 89,452 45,298 26,979 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A73 4.21—Continued Members Total Total National State 63 Total liabilities and equity capital 2,637,755 2,063,367 1,656,503 406,864 64 Total liabilities4 2,453,983 1,923,756 1,546,799 376,957 65 Total deposits 1,993,528 1,543,728 1,265,869 277,859 66 Individuals, partnerships, and corporations 1,837,080 1,419,170 1,168,134 251,036 67 U.S. government 8,279 7,221 6,304 918 68 States and political subdivisions in the United States 82,001 60,369 50,118 10,251 69 Commercial banks in the United States 32.095 29,073 22,466 6,607 70 Other depository institutions in the United States 7,614 5,636 4,724 913 71 Banks in foreign countries 7,655 7,036 3,959 3,077 72 Foreign governments and official institutions 1,337 1,131 676 455 73 Certified and official checks 17,465 14,092 9,489 4,603 74 Total transaction accounts 588,935 476,422 381,874 94,548 75 Individuals, partnerships, and corporations 503,384 402,798 326,280 76,518 76 U.S. government 6,987 6,061 5,273 788 77 States and political subdivisions in the United States 22,545 17,889 14,870 3,019 78 Commercial banks in the United States 25,938 24,145 18,746 5,399 79 Other depository institutions in the United States 4,579 3,708 2,908 800 80 Banks in foreign countries 7,129 6,864 3,864 3,000 81 Foreign governments and official institutions 909 864 443 421 82 Certified and official checks 17,465 14,092 9,489 4,603 83 Demand deposits (included in total transaction accounts) 413,392 342,572 269,445 73,128 84 Individuals, partnerships, and corporations 337,485 275,990 219.853 56,137 85 U.S. government 6,933 6,020 5,235 785 86 States and political subdivisions in the United States 12,974 10,900 8,917 1,983 87 Commercial banks in the United States 25,936 24,144 18,745 5,399 88 Other depository institutions in the United States 4,565 3,699 2,900 800 89 Banks in foreign countries 7,127 6,863 3,864 2,999 90 Foreign governments and official institutions 907 864 443 421 91 Certified and official checks 17,465 14,092 9,489 4,603 92 Total nontransaction accounts 1,404,593 1,067,307 883,996 183,311 93 Individuals, partnerships, and corporations 1,333,697 1,016,372 841.854 174,518 94 U.S. government 1,293 1,160 1,031 129 95 States and political subdivisions in the United States 59,456 42,480 35,248 7,232 96 Commercial banks in the United States 6,158 4.927 3,720 1,207 97 U.S. branches and agencies of foreign banks 572 216 73 143 98 Other commercial banks in the United States 5,585 4,711 3,647 1,064 99 Other depository institutions in the United States 3,035 1.928 1,815 113 100 Banks in foreign countries 526 172 95 77 101 Foreign branches of other U.S. banks 19 13 11 2 102 Other banks in foreign countries 507 159 84 75 103 Foreign governments and official institutions 428 267 233 34 104 Federal funds purchased and securities sold under agreements to repurchase12 240,293 201,784 145,327 56,456 105 Federal funds purchased 35,919 24,028 20.555 3,474 106 Securities sold under agreements to repurchase 29,248 14,695 12,255 2,440 107 Demand notes issued to the U.S. Treasury 22,717 20,556 14.556 6,000 108 Other borrowed money 81,004 57,021 44,562 12,459 109 Banks liability on acceptances executed and outstanding 17,548 16,374 12,181 4,193 110 Notes and debentures subordinated to deposits 1,585 1,074 1,015 58 111 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs 21.096 17,278 15,979 1,299 112 Remaining liabilities 97,308 83,219 63,288 19,931 113 Total equity capital9 183,772 139,610 109,703 29,907 MEMO 114 Holdings of commercial paper included in total loans, gross 2,653 1,468 1,387 81 115 Total individual retirement accounts (IRA) and Keogh plan accounts 112,989 87,741 73,173 14,569 116 Total brokered deposits 71,681 52,991 45,666 7,324 117 Total brokered retail deposits 38,843 26,914 22,941 3,973 118 Issued in denominations of $100,000 or less 8,893 4,104 3,765 340 119 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 29,950 22,810 19,176 3,634 Savings deposits 120 Money market deposit accounts (MMDAs) 338,969 270,141 222,982 47,159 121 Other savings accounts 168,035 129,761 97,300 32,462 122 Total time deposits of less than $100,000 566,047 420,228 357,917 62,311 123 Time certificates of deposit of $100,000 or more 296,927 217,958 187,635 30,323 124 Open-account time deposits of $100,000 or more 34,614 29,218 18,162 11,056 125 AU NOW accounts (including Super NOW accounts) 172,993 132,173 110,984 21,189 126 Total time and savings deposits 1,580,136 1,201,156 996,425 204,731 Quarterly averages 127 Total loans • 1,651,075 1,285,641 1,057,597 228,044 128 Obligations (other than securities) of states and political subdivisions in the United States ... 33,052 27,637 20,737 6,900 129 Transaction accounts (NOW accounts, ATS accounts, and telephone preauthorized transfer accounts) 165,906 126,248 106,022 20,226 Nontransaction accounts 130 Money market deposit accounts (MMDAs) 335,881 267,253 220,750 46,504 131 Other savings deposits 166,643 128,688 96,201 32,487 132 Time certificates of deposits of $100,000 or more 301,161 222,101 190,754 31,347 133 All other time deposits 5%,185 445,923 372,258 73,665 134 Number of banks 2,847 1,563 1,312 251 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Special Tables • May 1991 4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities1,2,6 Consolidated Report of Condition, December 31, 1990 Millions of dollars Members NNoonn-- TToottaall mmeemmbbeerrss Total National State 1 Total assets6 3,025,560 2,216,042 1,777,738 438,304 809,518 2 Cash and balances due from depository institutions 230,778 181,005 146,084 34,921 49,774 3 Currency and coin 33,457 25,982 21,701 4,281 7,475 4 Noninterest-bearing balances due from commercial banks 34,027 19,717 15,042 4,675 14,310 5 Other 163,294 135,306 109,340 25,965 27,988 6 Total securities, loans, and lease financing receivables (net of unearned income) 2,603,104 1,879,263 1,526,298 352,965 723,841 7 Total securities, book value 568,177 379,745 297,034 82,711 188,432 8 U.S. Treasury securities and U.S. government agency and corporation obligations 420,130 280,950 223,892 57,058 139,180 9 Securities issued by states and political subdivisions in the United States 81,946 55,020 41,574 13,446 26,926 10 Other debt securities 58,245 39,499 28,186 11,313 18,746 11 All holdings of private certificates of participation in pools of residential mortgages .. 3,581 2,557 2,292 265 1,024 12 All other 54,664 36,942 25,894 11,048 17,722 13 Equity securities 7,856 4,275 3,381 894 3,580 14 Marketable 4,136 1,140 906 234 2,9% 15 Investments in mutual funds 1,873 855 764 91 1,019 16 Other 2,724 380 211 169 2,344 17 Less: Net unrealized loss 461 95 68 26 366 18 Other equity securities 3,719 3,135 2,475 660 584 19 Federal funds sold and securities purchased under agreements to resell10 145,560 107,998 87,980 20,018 37,561 20 Federal funds sold 71,066 40,432 34,261 6,171 30,634 21 Securities purchased under agreements to resell 4,834 3,323 2,907 417 1,511 22 Total loans and lease financing receivables, gross 1,901,044 1,399,458 1,147,698 251,761 501,586 23 LESS: Unearned income on loans 11,677 7,938 6,413 1,525 3,739 24 Total loans and leases (net of unearned income) 1,889,367 1,391,520 1,141,284 250,235 497,847 Total loans, gross, by category 25 Loans secured by real estate 798,074 564,705 479,026 85,679 233,369 26 Construction and land development 125,550 96,429 79,698 16,731 29,121 27 Farmland 17,223 7,957 6,745 1,212 9,266 28 1-4 family residential properties 398,027 278,673 237,353 41,320 119,354 29 Revolving, open-end loans, and extended under lines of credit 61,323 45,993 38,337 7,655 15,330 30 All other loans 336,704 232,680 199,016 33,664 104,024 31 Multifamily (5 or more) residential properties 20,825 14,820 12,716 2,104 6,004 32 Nonfarm nonresidential properties 236,450 166,826 142,514 24,312 69,623 33 Loans to depository institutions 35,555 26,362 16,627 9,735 9,193 34 Loans to finance agricultural production and other loans to farmers 32,917 17,045 14,825 2,220 15,872 35 Commercial and industrial loans 508,423 400,078 319,154 80,924 108,345 36 Acceptances of other banks 3,558 1,718 1,489 229 1,840 37 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 381,844 267,175 225,212 41,963 114,670 38 Credit cards and related plans 79,569 44,018 41,224 2,794 35,551 39 Other (includes single payment installment) 150,351 83,932 70,094 13,838 66,419 40 Obligations (other than securities) of states and political subdivisions in the United States 33,625 27,226 20,554 6,673 6,398 41 Taxable 1,213 1,005 749 256 207 42 Tax-exempt 32,412 26,221 19,804 6,416 6,191 43 All other loans 73,259 66,579 46,990 19,589 6,680 44 Lease financing receivables 33,789 28,570 23,820 4,750 5,219 45 Customers' liability on acceptances outstanding 17,224 16,048 11,894 4,154 1,176 46 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs 47,328 41,828 20,129 21,699 5,500 47 Remaining assets 174,454 139,726 93,462 46,264 34,728 48 Total liabilities and equity capital 3,025,560 2,216,042 1,777,738 438,304 809,518 49 Total liabilities4 2,807,194 2,063,030 1,657,511 405,519 744,163 50 Total deposits 2,338,004 1,679,307 1,373,756 305,551 658,6% 51 Individuals, partnerships, and corporations 2,154,095 1,544,355 1,267,785 276,570 609,740 52 U.S. government 9,104 7,586 6,579 1,007 1,519 53 States and political subdivisions in the United States 104,173 68,381 56,618 11,763 35,792 54 Commercial banks in the United States 33,237 29,782 22,893 6,889 3,455 55 Other depository institutions in the United States 8,578 5,968 4,989 979 2,610 56 Certified and official checks 19,781 15,049 10,242 4,806 4,732 57 All other 9,036 8,186 4,648 3,538 849 58 Total transaction accounts 679,786 513,472 411,757 101,715 166,314 59 Individuals, partnerships, and corporations 583,978 435,663 352,899 82,764 148,315 60 U.S. government 7,704 6,386 5,516 870 1,318 61 States and political subdivisions in the United States 28,933 20,201 16,781 3,421 8,731 62 Commercial banks in the United States 26,499 24,615 19,006 5,609 1,884 63 Other depository institutions in the United States 4,831 3,813 2,994 819 1,017 64 Certified and official checks 19,781 15,049 10,242 4,806 4,732 65 All other 8,060 7,745 4,318 3,427 316 66 Demand deposits (included in total transaction accounts) 460,781 362,388 285,268 77,121 98,393 67 Individuals, partnerships, and corporations 379,167 293,287 233,777 59,510 85,880 68 U.S. government 7,638 6,342 5,475 867 1,2% 69 States and political subdivisions in the United States 14,837 11,553 9,468 2,085 3,284 70 Commercial banks in the United States 26,497 24,614 19,005 5,609 1,883 71 Other depository institutions in the United States 4,806 3,800 2,982 818 1,005 72 Certified and official checks 19,781 15,049 10,242 4,806 4,732 73 All other 8,057 7,743 4,318 3,426 313 74 Total nontransaction accounts 1,658,218 1,165,835 961,999 203,836 492,383 75 Individuals, partnerships, and corporations 1,570,117 1,108,692 914,886 193,806 461,425 76 U.S. government 1,400 1,200 1,063 136 201 77 States and political subdivisions in the United States 75,240 48,180 39,838 8,342 27,060 78 Commercial banks in the United States 6,738 5,167 3,887 1,280 1,571 79 Other depository institutions in the United States 3,748 2,155 1,995 160 1,593 80 All other 975 441 330 111 534 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks All 4.22—Continued Members Item TToottaall NNoonn-mmeemmbbeerrss Total National State 81 Federal funds purchased and securities sold under agreements to repurchase 243,432 203,307 146,395 56,911 40,125 82 Federal funds purchased 37,087 24,647 20,905 3,742 12,440 83 Securities sold under agreements to repurchase 31,219 15,599 12,972 2,627 15,620 84 Demand notes issued to the U.S. Treasury 23,214 20,773 14,730 6,042 2,441 85 Other borrowed money 81,792 57,329 44,824 12,505 24,462 86 Banks liability on acceptances executed and outstanding 17,567 16,390 12,194 4,197 1,176 87 Notes and debentures subordinated to deposits 1,705 1,103 1,036 66 602 88 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs 21.096 17,278 15,979 1,299 3,818 89 Remaining liabilities 101,481 84,821 64,576 20,246 16,660 90 Total equity capital9 218,366 153,012 120,226 32,785 65,355 MEMO 91 Assets held in trading accounts13 23,786 22,340 12,859 9,482 1,446 92 U.S. Treasury securities 8,517 8,341 3,386 4,955 176 93 U.S. government agency corporation obligations 2,465 2,257 1,864 393 208 94 Securities issued by states and political subdivisions in the United States 1,207 1,178 863 315 29 95 Other bonds, notes, and debentures 371 239 81 158 132 96 Certificates of deposit 992 985 541 444 7 97 Commercial paper 19 19 19 0 0 98 Bankers acceptances 2,306 2,194 1,403 792 111 99 Other 6,814 6,732 4,350 2,382 81 100 Total individual retirement accounts (IRA) and Keogh plan accounts 131,971 94,959 78,948 16,011 37,012 101 Total brokered deposits 72,442 53,191 45,791 7,400 19,251 102 Total brokered retail deposits 39,547 27,098 23,057 4,041 12,449 103 Issued in denominations of $100,000 or less 9,465 4,279 3,876 403 5,185 104 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 30,082 22,818 19,180 3,638 7,264 Savings deposits 105 Money market deposit accounts (MMDAs) 377,161 286,572 236,104 50,468 90,589 106 Other savings deposits 197,049 141,190 106,343 34,846 55,860 107 Total time deposits of less than $100,000 711,973 474,556 400,895 73,660 237,418 108 Time certificates of deposit of $100,000 or more 336,118 233,860 200,135 33,726 102,258 109 Open-account time deposits of $100,000 or more 35,916 29,658 18,522 11,136 6,259 110 All NOW accounts (including Super NOW) 215,207 149,009 124,756 24,253 66,198 111 Total time and savings deposits 1,877,222 1,316,919 1,088,488 228,431 560,303 Quarterly averages 112 Total loans 1,853,361 1,364,712 1,119,175 245,536 488,649 113 Transaction accounts (NOW accounts, ATS accounts, and telephone and preauthorized transfer accounts) 207,558 142,725 119,472 23,253 64,833 Nontransaction accounts 114 Money market deposit accounts (MMDAs) 373,862 283,562 233,725 49,837 90,301 115 Other savings deposits 195,410 140,051 105,193 34,858 55,358 116 Time certificates of deposit of $100,000 or more 339,980 237,772 203,085 34,688 102,207 117 All other time deposits 741,890 500,183 415,197 84,987 241,707 118 Number of banks 12,316 4,983 3,976 1,007 7,333 1. Effective Mar. 31, 1984, the report of condition was substantially revised for refers to those respondents whose assets, as of June 30 of the previous calendar commercial banks. Some of the changes are as follows: (1) Previously, banks with year, were less than $100 million. (These respondents filed the FFIEC 034 call international banking facilities (IBFs) that had no other foreign offices were report.) considered domestic reporters. Beginning with the Mar. 31, 1984 call report these 6. Since the domestic portion of allowances for loan and lease losses and banks are considered foreign and domestic reporters and must file the foreign and allocated transfer risk reserve are not reported for banks with foreign offices, the domestic report of condition; (2) banks with assets greater than $1 billion have components of total assets (domestic) will not add to the actual total (domestic). additional items reported; (3) the domestic office detail for banks with foreign 7. Since the foreign portion of demand notes issued to the U.S. Treasury is not offices has been reduced considerably; and (4) banks with assets under $25 million reported for banks with foreign offices, the components of total liabilities (foreign) have been excused from reporting certain detail items. will not add to the actual total (foreign). 2. The "n.a." for some of the items is used to indicate the lesser detail available 8. The definition of 'all other' varies by report form and therefore by column in from banks without foreign offices, the inapplicability of certain items to banks this table. See the instructions for more detail. that have only domestic offices and/or the absence of detail on a fully consolidated 9. Equity capital is not allocated between the domestic and foreign offices of basis for banks with foreign offices. banks with foreign offices. 3. All transactions between domestic and foreign offices of a bank are reported 10. Only the domestic portion of federal funds sold and securities purchased in "net due from" and "net due to." All other lines represent transactions with under agreements to resell are reported here, therefore, the components will not parties other than the domestic and foreign offices of each bank. Since these add to totals for this item. intraoffice transactions are nullified by consolidation, total assets and total 11. "Acceptances of other banks" is not reported by domestic respondents less liabilities for the entire bank may not equal the sum of assets and liabilities than $300 million in total assets, therefore the components will not add to totals for respectively, of the domestic and foreign offices. this item. 4. Foreign offices include branches in foreign countries, Puerto Rico, and in 12. Only the domestic portion of federal funds purchased and securities sold U.S. territories and possessions; subsidiaries in foreign countries; all offices of are reported here, therefore the components will not add to totals for this item. Edge act and agreement corporations wherever located and IBFs. 13. Components of assets held in trading accounts are only reported for banks 5. The 'over 100' column refers to those respondents whose assets, as of June with total assets of $1 billion or more; therefore the components will not add to the 30 of the previous calendar year, were equal to or exceeded $100 million. (These totals for this item. respondents file the FFIEC 032 or FFIEC 033 call report.) The 'under 100' column Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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. SIEOMAN, Senior Associate Director DIANE E. WERNEKE, Special Assistant to the Board DAVID H. HOWARD, Deputy Associate Director ROBERT F. GEMMILL, Staff Adviser LEGAL DIVISION DONALD B. ADAMS, Assistant Director J. VIRGIL MATTINGLY, JR., General Counsel DALE W. HENDERSON, Assistant Director SCOTT G. ALVAREZ, Associate General Counsel PETER HOOPER III, Assistant Director RICHARD M. ASHTON, Associate General Counsel KAREN H. JOHNSON, Assistant Director OLIVER IRELAND, Associate General Counsel RALPH W. SMITH, JR. , Assistant Director RICKI R. TIGERT, Associate General Counsel KATHLEEN M. O'DAY, Assistant General Counsel DIVISION OF RESEARCH AND STATISTICS MARYELLEN A. BROWN, Assistant to the General Counsel MICHAEL J. PRELL, Director EDWARD C. ETTIN, Deputy Director OFFICE OF THE SECRETARY THOMAS D. SIMPSON, Associate Director WILLIAM W. WILES, Secretary LAWRENCE SLIFMAN, Associate Director JENNIFER J. JOHNSON, Associate Secretary DAVID J. STOCKTON, Associate Director BARBARA R. LOWREY, Associate Secretary MARTHA BETHEA, Deputy Associate Director PETER A. TINSLEY, Deputy Associate Director DIVISION OF CONSUMER MYRON L. KWAST, Assistant Director PATRICK M. PARKINSON, Assistant Director AND COMMUNITY AFFAIRS MARTHA S. SCANLON, Assistant Director GRIFFITH L. GARWOOD, Director JOYCE K. ZICKLER, Assistant Director GLENN E. LONEY, Assistant Director LEVON H. GARABEDIAN, Assistant Director ELLEN MALAND, Assistant Director (.Administration) DOLORES S. SMITH, Assistant Director DIVISION OF MONETARY AFFAIRS DIVISION OF BANKING DONALD L. KOHN, Director SUPERVISION AND REGULATION DAVID E. LINDSEY, Deputy Director WILLIAM TAYLOR, Staff Director BRIAN F. MADIGAN, Assistant Director DON E. KLINE, Associate Director RICHARD D. PORTER, Assistant Director FREDERICK M. STRUBLE, Associate Director NORMAND R.V. BERNARD, Special Assistant to the Board WILLIAM A. RYBACK, Deputy Associate Director STEPHEN C. SCHEMERING, Deputy Associate Director OFFICE OF THE INSPECTOR GENERAL RICHARD SPILLENKOTHEN, Deputy Associate Director BRENT L. BOWEN, Inspector General HERBERT A. BIERN, Assistant Director JOE M. CLEAVER, Assistant Director BARRY R. SNYDER, Assistant Inspector General ROGER T. COLE, Assistant Director JAMES I. GARNER, Assistant Director JAMES D. GOETZINGER, Assistant Director MICHAEL G. MARTINSON, Assistant Director ROBERT S. PLOTKIN, Assistant Director SIDNEY M. SUSSAN, Assistant Director LAURA M. HOMER, Securities Credit Officer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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. RADEBAUGH, JR., Assistant Director ELIZABETH B. RIGGS, Assistant Director DIVISION OF APPLICATIONS DEVELOPMENT AND STATISTICAL SERVICES WILLIAM R. JONES, Director ROBERT J. ZEMEL, Associate Director Po KYUNG KIM, Assistant Director RAYMOND H. MASSEY, Assistant Director RICHARD C. STEVENS, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

80 Federal Reserve Bulletin • May 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 JOHN P. LAWARE ROBERT P. BLACK EDWARD W. KELLEY, JR. DAVID W. MULLINS, JR. ROBERT P. FORRESTAL ROBERT T. PARRY ALTERNATE MEMBERS ROGER GUFFEY THOMAS C. MELZER JAMES H. OLTMAN W. LEE HOSKINS RICHARD F. SYRON STAFF DONALD L. KOHN, Secretary and Economist J. ALFRED BROADDUS, JR., Associate Economist NORMAND R. V. BERNARD, Deputy Secretary RICHARD G. DAVIS, Associate Economist JOSEPH R. COYNE, Assistant Secretary DAVID E. LINDSEY, Associate Economist GARY P. GILLUM, Assistant Secretary LARRY J. PROMISEL, Associate Economist J. VIRGIL MATTINGLY, JR., General Counsel KARL A. SCHELD, Associate Economist ERNEST T. PATRIKIS, Deputy General Counsel CHARLES J. SIEGMAN, Associate Economist MICHAEL J. PRELL, Economist THOMAS D. SIMPSON, Associate Economist EDWIN M. TRUMAN, Economist LAWRENCE SLIFMAN, Associate Economist JACK H. BEEBE, Associate Economist SHEILA T. TSCHINKEL, Associate Economist PETER D. STERNLIGHT, Manager for Domestic Operations, System Open Market Account SAM Y. CROSS, Manager for Foreign Operations, System Open Market Account FEDERAL ADVISORY COUNCIL PAUL HAZEN, President LLOYD P. JOHNSON, Vice President IRA STEPANIAN, First District B. KENNETH WEST, Seventh District CHARLES S. SANFORD, JR., Second District DAN W. MITCHELL, Eighth District TERRENCE A. LARSEN, Third District LLOYD P. JOHNSON, Ninth District JOHN B. MCCOY, Fourth District JORDAN L. HAINES, Tenth District EDWARD E. CRUTCHFIELD, Fifth District RONALD G. STEINHART, Eleventh District E.B. Robinson, Jr., Sixth District PAUL HAZEN, Twelfth District HERBERT V. PROCHNOW, Secretary WILLIAM J. KORSVIK, Associate Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSUMER ADVISORY COUNCIL JAMES W. HEAD, Berkeley, California, Chairman LINDA K. PAGE, Columbus, Ohio, Vice Chairman VERONICA E. BARELA, Denver, Colorado JULLA E. HILER, Marietta, Georgia GEORGE H. BRAASCH, Oakbrook, Illinois HENRY JARAMILLO, Belen, New Mexico TOYE L. BROWN, Boston, Massachusetts BARBARA KAUFMAN, San Francisco, California CLIFF E. COOK, Tacoma, Washington KATHLEEN E. KEEST, Boston, Massachusetts R.B. (JOE) DEAN, JR., Columbia, South Carolina COLLEEN D. MCCARTHY, Kansas City, Missouri DENNY D. DUMLER, Denver, Colorado MICHELLE S. MEIER, Washington, D.C. WILLIAM C. DUNKELBERG, Philadelphia, Pennsylvania BERNARD F. PARKER, JR., Detroit, Michigan JAMES FLETCHER, Chicago, Illinois OTIS PITTS, JR., Miami, Florida GEORGE C. GALSTER, Wooster, Ohio VINCENT P. QUAYLE, Baltimore, Maryland E. THOMAS GARMAN, Blacksburg, Virginia CLIFFORD N. ROSENTHAL, New York, New York DONALD A. GLAS, Hutchinson, Minnesota ALAN M. SILBERSTEIN, New York, New York DEBORAH B. GOLDBERG, Washington, D.C. NANCY HARVEY STEORTS, Dallas, Texas MICHAEL M. GREENFIELD, St. Louis, Missouri DAVID P. WARD, Chester, New Jersey JOYCE HARRIS, Madison, Wisconsin SANDRA L. WILLETT, Boston, Massachusetts THRIFT INSTITUTIONS ADVISORY COUNCIL MARION O. SANDLER, Oakland, California, President LYNN W. HODGE, Greenwood, South Carolina, Vice President DANIEL C. ARNOLD, Houston, Texas RICHARD A. LARSON, West Bend, Wisconsin JAMES L. BRYAN, Richardson, Texas PRESTON MARTIN, San Francisco, California DAVID L. HATFIELD, Kalamazoo, Michigan RICHARD D. PARSONS, New York, New York ELLIOT K. KNUTSON, Seattle, Washington EDMOND M. SHANAHAN, Chicago, Illinois JOHN WM. LAISLE, Oklahoma City, Oklahoma WOODBURY C. TITCOMB, Worcester, Massachusetts Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

82 Federal Reserve Board Publications For ordering assistance, write PUBLICATIONS SERVICES, THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A MS-138, Board of Governors of the Federal Reserve System, MULTICOUNTRY MODEL, May 1984. 590 pp. $14.50 each. Washington, D.C. 20551 or telephone (202) 452-3244 or FAX WELCOME TO THE FEDERAL RESERVE. March 1989. 14 pp. (202) 728-5886. When a charge is indicated, payment should INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. accompany request and he made payable to the Board of 440 pp. $9.00 each. Governors of the Federal Reserve System. Payment from foreign FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. residents should be drawn on a U.S. bank. December 1986. 264 pp. $10.00 each. FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALY- SIS AND POLICY ISSUES. August 1990.608 pp. $25.00 each. THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS. 1984. 120 pp. ANNUAL REPORT. ANNUAL REPORT: BUDGET REVIEW, 1990-91. CONSUMER EDUCATION PAMPHLETS FEDERAL RESERVE BULLETIN. Monthly. $25.00 per year or $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. ANNUAL STATISTICAL DIGEST 1974-78. 1980. 305 pp. $10.00 per copy. Consumer Handbook on Adjustable Rate Mortgages 1981. 1982. 239 pp. $ 6.50 per copy. Consumer Handbook to Credit Protection Laws 1982. 1983. 266 pp. $ 7.50 per copy. A Guide to Federal Reserve Regulations 1983. 1984. 264 pp. $11.50 per copy. A Guide to Business Credit for Women, Minorities, and Small 1984. 1985. 254 pp. $12.50 per copy. Businesses 1985. 1986. 231 pp. $15.00 per copy. How to File A Consumer Credit Complaint 1986. 1987. 288 pp. $15.00 per copy. Series on the Structure of the Federal Reserve System The Board of Governors of the Federal Reserve System 1987. 1988.272 pp. $15.00 per copy. The Federal Open Market Committee 1988. 1989. 256 pp. $25.00 per copy. Federal Reserve Bank Board of Directors 1980-89. 1991. 712 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 Right affecting the Federal Reserve System, as amended through to Fair Lending August 1990. 646 pp. $10.00. Making Deposits: When Will Your Money Be Available? REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL When Your Home is on the Line: What You Should Know About RESERVE SYSTEM. Home Equity Lines of Credit ANNUAL PERCENTAGE RATE TABLES (Truth in Lending-Regulation Z) Vol. / (Regular Transactions). 1969.100pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each volume $2.25; 10 or more of same volume to one address, $2.00 each. PAMPHLETS FOR FINANCIAL INSTITUTIONS Introduction to Flow of Funds. 1980. 68 pp. $1.50 each; 10 or Short pamphlets on regulatory compliance, primarily suitable more to one address, $1.25 each. for banks, bank holding companies, and creditors. Federal Reserve Regulatory Service. Looseleaf; updated at least monthly. (Requests must be prepaid.) Limit of fifty copies Consumer and Community Affairs Handbook. $75.00 per year. The Board of Directors' Opportunities in Community Monetary Policy and Reserve Requirements Handbook. Reinvestment $75.00 per year. The Board of Directors' Role in Consumer Law Compliance Securities Credit Transactions Handbook. $75.00 per year. Combined Construction/Permanent Loan Disclosure and The Payment System Handbook. $75.00 per year. Regulation Z Federal Reserve Regulatory Service. 3 vols. (Contains all four Community Development Corporations and the Federal Reserve Handbooks plus substantial additional material.) $200.00 Construction Loan Disclosures and Regulation Z per year. Finance Charges Under Regulation Z Rates for subscribers outside the United States are as follows How to Determine the Credit Needs of Your Community and include additional air mail costs: Regulation Z: The Right of Rescission Federal Reserve Regulatory Service, $250.00 per year. The Right to Financial Privacy Act Each Handbook, $90.00 per year. 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 1-145 are out of print. REPRINTS OF SELECTED Bulletin ARTICLES 146. THE ROLE OF THE PRIME RATE M 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-A77 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Demand deposits Agricultural loans, commercial banks, 19, 20 Banks, by classes, 18-21, 73, 75, 77 Assets and liabilities (See also Foreigners) Ownership by individuals, partnerships, and corporations, 21 Banks, by classes, 18-20, 72-77 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, 73, 75, 77 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, 72, 74, 76. (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, 73,75, 77 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, 72, 74, 76 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, 72, 74, 76 Federal National Mortgage Association, 32, 36, 37 Consumer loans held, by type and terms, 38, 39 Federal Reserve Banks Loans sold outright, 19 Condition statement, 10 Nondeposit funds, 17 Discount rates (See Interest rates) Number by classes, 73, 75, 77 U.S. government securities held, 4, 10, 11,29 Real estate mortgages held, by holder and property, 37 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, 72, 74, 76 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, 74 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 Residential mortgage loans, 36 INCOME, personal and national, 45, 52, 53 Retail credit and retail sales, 38, 39,45 Industrial production, 45,48 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 Consumer installment credit, 39 Savings and loan associations, 25, 37, 38, 40. (See also Thrift Federal Reserve Banks, 7 institutions) Foreign central banks and foreign countries, 68 Savings banks, 25, 37, 38 Money and capital markets, 23 Savings deposits (See Time and savings deposits) Mortgages, 36 Securities (See also specific types) Prime rate, 22 Federal and federally sponsored credit agencies, 32 International capital transactions of United States, 54-68 Foreign transactions, 66 International organizations, 58, 59, 61, 64, 65 New issues, 33 Inventories, 52 Prices, 24 Investment companies, issues and assets, 34 Special drawing rights, 4, 10, 54, 55 Investments (See also specific types) State and local governments Banks, by classes, 18, 19, 20, 21, 25 Deposits, 19,20 Commercial banks, 3, 16, 18-20, 37, 72 Holdings of U.S. government securities, 29 Federal Reserve Banks, 10,11 New security issues, 33 Financial institutions, 25, 37 Ownership of securities issued by, 19, 20, 25 Rates on securities, 23 LABOR force, 46 Stock market, selected statistics, 24 Life insurance companies (See Insurance companies) Stocks (See also Securities) Loans (See also specific types) New issues, 33 Banks, by classes, 18-20 Prices, 24 Commercial banks, 3, 16, 18-20,72, 74, 76 Federal Reserve Banks, 4, 5, 7, 10, 11 Student Loan Marketing Association, 32 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, 73, 75, 77 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 Jerome H. Grossman Robert W. Eisenmenger NEW YORK* 10045 Cyrus R.Vance E. Gerald Corrigan Ellen V. Futter James H. Oltman Buffalo 14240 Mary Ann Lambertsen James O. Aston PHILADELPHIA 19105 Peter A. Benoliel Edward G. Boehne Jane G. Pepper William H. Stone, Jr. CLEVELAND* 44101 John R.Miller W.LeeHoskins A. William Reynolds William H. Hendricks Cincinnati 45201 Kate Ireland Charles A. Cerino1 Pittsburgh 15230 Robert P. Bozzone Harold J. Swart1 RICHMOND* 23219 Anne Marie Whittemore Robert P. Black Henry J. Faison Jimmie R. Monhollon Baltimore 21203 John R. Hardesty, Jr. Ronald B. Duncan1 Charlotte 28230 Anne M. Allen Albert D. Tinkelenberg1 Culpeper Communications John G. Stoides1 and Records Center 22701 ATLANTA 30303 Larry L. Prince Robert P. Forrestal Edwin A. Huston Jack Guynn Donald E. Nelson1 Birmingham 35283 Roy D.Terry FredR. Herr1 Jacksonville 32231 Hugh M. Brown James D. Hawkins1 Miami 33152 Dorothy C. Weaver James T. Curry m Nashville 37203 Shirley A. Zeitlin Melvyn K. Purcell New Orleans 70161 Vacancy Robert J. Musso CHICAGO* 60690 Charles S. McNeer Silas Keehn Richard G. Cline Daniel M. Doyle Detroit 48231 Phyllis E. Peters Roby L.Sloan1 ST. LOUIS 63166 H. Edwin Trusheim Thomas C. Melzer Robert H. Quenon James R. Bowen Little Rock 72203 Wm. Earle Love Karl W. Ashman Louisville 40232 Lois H.Gray Howard Wells Memphis 38101 Katherine H. Smythe Ray Laurence MINNEAPOLIS 55480 Delbert W. Johnson Gary H. Stern Gerald A. Rauenhorst Thomas E. Gainor Helena 59601 James E. Jenks John D. Johnson KANSAS CITY 64198 Fred W. Lyons, Jr. Roger Guffey Burton A. Dole, Jr. Henry R. Czerwinski Denver 80217 Barbara B. Grogan Kent M.Scott Oklahoma City 73125 Ernest L. Holloway David J. France Omaha 68102 Herman Cain Harold L. Shewmaker DALLAS 75222 Hugh G. Robinson Robert D. McTeer, Jr. Leo E. Linbeck, Jr. To be announced Tony J. Salvaggio1 El Paso 79999 W. Thomas Beard, III Sammie C. Clay Houston 77252 Gilbert D. Gaedcke, Jr. Robert Smith, m1 San Antonio 78295 Roger R. Hemminghaus Thomas H. Robertson SAN FRANCISCO 94120 Robert F. Erburu Robert T. Parry Carolyn S. Chambers Carl E. Powell Los Angeles 90051 Yvonne B. Burke Thomas C. Warren2 Portland 97208 William A. Hilliard Angelo S. Carella1 Salt Lake City 84125 D.N.Rose E. Ronald Liggett1 Seattle 98124 Bruce R. Kennedy Gerald R. Kelly1 •Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016; Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202. 1. Senior Vice President. 2. Executive Vice President. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

87 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories LEGEND —— Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities Boundaries of Federal Reserve Branch * Federal Reserve Branch Cities Territories Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

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