Federal Reserve Bulletin, 1991-08

VOLUME 77 • NUMBER 8 • AUGUST 1991 FEDERAL RESERVE BULLETIN BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C. PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood • Donald L. Kohn • J. Virgil Mattingly, Jr. • Michael J. Prell • Edwin M. Truman The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Section headed by S. Ellen Dykes, the Graphics Center under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Table of Contents 625 A METHOD FOR EVALUATING 644 Alan Greenspan, Chairman, Board of Gov- INTEREST RATE RISK IN U.S. ernors, testifies in support of the Foreign COMMERCIAL BANKS Bank Supervision Enhancement Act, which is designed to strengthen the supervision Staff members of the Federal Reserve are and regulation of foreign banks operating in investigating a possible supervisory apthe United States, and on section 231 of the proach to assessing the interest rate risk of Financial Institutions Safety and Consumer commercial banks. Once fully developed Choice Act of 1991 (H.R. 15015), which and field tested, the approach under considdeals with proposed restrictions on activieration could supplement existing examinaties of foreign banks in the United States, tion procedures and provide an additional and says that the Foreign Bank Supervision off-site monitoring tool for understanding Enhancement Act would achieve an appropotential exposures to interest rate changes. priate level of supervision of foreign banks Institutions identified as having high expowithout the negative side effects of some of sures to interest rate risk would be more the requirements of section 231, before the likely to receive detailed reviews concerning House Committee on Banking, Finance and such risk, and examiners would continue to Urban Affairs, June 11, 1991. apply significant flexibility in their consideration of the conditions at each bank. 651 Edward W. Kelley, Jr., Member, Board of Governors, discusses lender liability under 638 INDUSTRIAL PRODUCTION AND CERCLA and the solutions to this problem CAPACITY UTILIZATION proposed by S.651, and says that it is in the interests of the financial and environmental Industrial production increased 0.5 percent communities to find a balanced solution to in May, after an upward revised gain of 0.3 the lender liability issue and that the envipercent in April. Total industrial capacity ronmental goals of CERCLA will be furutilization in May increased 0.2 percentage thered by S.651, before the Senate Commitpoint to 78.7 percent after a revised intee on Banking, Housing, and Urban crease of 0.1 percent in April. Affairs, June 12, 1991. 641 STATEMENTS TO THE CONGRESS 654 John P. LaWare, Member, Board of Governors, gives the views of the Board regard- The Board of Governors submits testimony ing possible amendments to the Governdiscussing the issues of lender liability unment Securities Act of 1986 and says that der the Comprehensive Environmental Rethe Treasury's current authority to write sponse, Compensation, and Liability Act of the rules in the market for government 1980 (CERCLA) in connection with prosecurities should be extended beyond the posed legislation, H.R. 14550 and S.651, to sunset date, before the Subcommittee on deal with the issues, and says that it be- Securities of the Senate Committee on lieves that the environmental goals of Banking, Housing, and Urban Affairs, CERCLA will be furthered by the provi- June 12, 1991. sions of these bills, before the House Committee on Banking, Finance and Urban 657 Alan Greenspan, Chairman, Board of Gov- Affairs, June 6, 1991. ernors, discusses U.S. international com- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

petitiveness and says that the ultimate test 665 LEGAL DEVELOPMENTS of the country's competitiveness is what is Various bank holding company, bank serhappening to the standard of living of U.S. vice corporation, and bank merger orders; citizens over time, before the House Comand pending cases. mittee on Ways and Means, June 18, 1991. Ai FINANCIAL AND BUSINESS STATISTICS 660 David W. Mullins, Jr., Member, Board of Governors, and nominee to serve as Vice These tables reflect data available as of Chairman, reviews the basic goals of the June 26, 1991. Federal Reserve in its two major areas of A3 Domestic Financial Statistics activity, monetary policy and financial regu- A46 Domestic Nonfinancial Statistics lation, before the Senate Committee on A55 International Statistics Banking, Housing, and Urban Affairs, June 18, 1991. A71 GUIDE TO TABULAR PRESENTATION, STATISTICAL RELEASES, AND SPECIAL 663 ANNOUNCEMENTS TABLES Adoption of new procedures for state banks A84 BOARD OF GOVERNORS AND STAFF to follow regarding the public's access to Community Reinvestment Act Performance A86 FEDERAL OPEN MARKET COMMITTEE Evaluations and ratings. AND STAFF; ADVISORY COUNCILS Requirement that all depository institutions that originate or receive commercial auto- A88 FEDERAL RESERVE BOARD mated clearinghouse (ACH) transactions PUBLICATIONS through the Federal Reserve Banks establish electronic access to the Reserve Banks A90 INDEX TO STATISTICAL TABLES for ACH services. A92 FEDERAL RESERVE BANKS, Change in Board staff. BRANCHES, AND OFFICES Admission of four state banks to membership in the Federal Reserve System. A93 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A Method for Evaluating Interest Rate Risk in U.S. Commercial Banks James V. Houpt and James A. Ember sit, of the ment of interest rate risk a growing challenge. Board's Division of Banking Supervision and Accordingly, bank supervisors are placing in- Regulation, prepared this article. creased emphasis on evaluating the interest rate risk of banks. This focus has become particu- When interest rates change, the economic values larly sharp in light of the current implementaof the loans, securities, and deposits at banks tion of risk-based capital charges. The 1988 also change, but not necessarily in offsetting international agreement on capital standards ways. The net effect of these changes is reflected known as the Basle Accord represents an imin a bank's earnings and net worth. The risk that portant milestone in supervisory policy by makchanges in rates might adversely affect a bank's ing a bank's minimum capital requirements financial condition is referred to as interest rate sensitive to the credit risk of its assets and risk. off-balance-sheet positions.1 The agreement, As financial intermediaries, banks and other however, focuses primarily on credit risk; it depository institutions accept interest rate risk as does not impose an explicit capital charge tied a normal part of their business. They assume the to interest rate risk. risk whenever the interest rates paid on their One possible effect of this focus is that banks liabilities do not adjust in unison with the rates may have an incentive to substitute interest rate earned on their assets. Such mismatches often risk for credit risk in structuring their balance present institutions with opportunities to profit sheets. Indeed, this may already be happening. from favorable changes in interest rates, but they The emergence of large positions in mortgagealso expose a bank's capital and earnings to backed securities is particularly noticeable. At adverse changes. Effective management of inter- the end of 1988, these securities accounted for 17 est rate risk is a fundamental element of the percent of the aggregate securities portfolio of banking business. the commercial banking industry and less than 3 Banks have many ways of managing their risk. percent of its total assets; by early 1991 these Most banks change their exposures by altering shares had doubled, to 35 percent of all bank the rates (or prices) and maturities at which they securities and 6.5 percent of total banking assets. are willing to originate loans, buy or sell securi- Although the share of mortgage-backed securities, and accept deposits. With the emergence of ties in total assets is still small, the rapid growth many new financial products and markets during the 1980s, banks have acquired even more alternatives for managing interest rate risk while 1. The Basle Accord, reached on July 11, 1988, covers the meeting customer preferences on the terms of twelve industrial countries participating in the Basle Committee on Banking Regulations and Supervisory Practices under loans and deposits. Interest rate swaps and finanthe auspices of the Bank for International Settlements, in cial futures, forwards, and options are some of Basle, Switzerland (Belgium, Canada, France, Germany, the growing number of tools banks now use to Italy, Japan, Luxembourg, the Netherlands, Sweden, Switzerland, the United Kingdom, and the United States). In the adjust their exposures. United States, the Federal Reserve Board on January 19, In the United States, the combination of a 1989, adopted requirements implementing the Basle Accord volatile interest rate environment, deregulation, for state banks that are members of the Federal Reserve System and for bank holding companies. Interim requireand the growing array of new on- and offments became effective at the end of 1990, and final requirebalance-sheet products has made the manage- ments will take effect at the end of 1992. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

626 Federal Reserve Bulletin • August 1991 within such a short period may be an indication banks. Indeed, once an international framework of increasing interest rate risk exposure among emerges for the assessment of interest rate risk, banks. Regardless of whether banks are increas- every country may need to tailor that framework ing their exposure, interest rate risk is a funda- to the specific characteristics and structure of its mental element of the business and should be own banking system. considered in assessing the adequacy of bank In view of these considerations, staff members capital. at the Federal Reserve are investigating a possible supervisory approach to assessing interest rate risk that would supplement existing exami- CURRENT RISK GUIDELINES nation procedures and provide an additional offsite monitoring tool for understanding potential The Basle Accord tailors a bank's minimum exposures to interest rate changes. The apcapital requirement to the credit risk embodied in proach, which would be further developed and the institution's assets and off-balance-sheet in- field tested before its formal incorporation in the struments. Under the agreement, those balances examination process, is consistent with that beperceived to carry greater credit risk must be ing pursued internationally and would therefore backed by levels of capital higher than those be adaptable to any international agreement that required for lower-risk positions. Overall, the is likely to emerge. standard requires internationally active banks to have total capital (including equity, reserves, and subordinated debt) equal to at least 8 percent of CURRENT TECHNIQUES FOR MEASURING their risk-weighted assets by the end of 1992.2 AND MANAGING INTEREST RATE RISK The capital treatment of interest rate risk was deferred in the construction of the existing agree- Depending on their objectives and the complexment and is now being addressed by another ity of their operations, banks use a variety of international committee working, once again, techniques to manage interest rate risk, ranging under the aegis of the Bank for International from relatively simple maturity "gap" calcula- Settlements (BIS). tions to more sophisticated duration or simula- The Federal Reserve System is actively partic- tion analyses. Maturity gap analysis begins with ipating in the work of the BIS committee. How- a report that categorizes assets and liabilities by ever, several reasons suggest the need for simul- their repricing dates to identify mismatches taneous steps to supplement the current within specific time periods. Those reports are "domestic" approach to the supervision of inter- typically used by banks to estimate the effect of est rate risk. One reason is that the time required interest rate changes on their near-term reported to develop and implement an international stan- earnings. By focusing on reported earnings to dard is uncertain. Moreover, the international judge rate sensitivity, this accounting approach approach under development is aimed primarily to evaluating interest rate risk tends to ignore or at the largest and most internationally active downplay the effect of mismatches among medibanks, which conduct activities in a variety of um- or long-term positions. currencies (each with its own interest rate expo- Contrasting with techniques that take an acsure) often involving complex transactions. An counting perspective are those that focus on approach for incorporating interest rate risk into estimating the interest rate sensitivity of the the risk-based capital standard developed for economic value of a bank's on- and off-balancethem may have to be modified for application to sheet positions. Duration analysis is one such many of the 12,000 small and medium-size U.S. technique. The duration of a financial instrument is the weighted average maturity of the instrument's total cash flows in present value terms. When modified to reflect an instrument's discrete compounding of interest, duration provides a 2. As defined, risk-weighted assets include credit expoconcise measure of the sensitivity of the present sures contained in off-balance-sheet instruments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A Method for Evaluating Interest Rate Risk in U.S. Commercial Banks 627 value of the instrument to changing interest come) make it difficult to isolate objectively the rates. Specifically, modified duration can be influence of changing interest rates. The chief viewed as an elasticity that estimates the per- benefit of simulation models resides, to a large centage change in the value of an instrument for degree, in revealing the sensitivity of results to each percentage point change in market interest the assumptions used. rates. The greater the modified duration of the For their part, bank examiners assess an instiinstrument, the more sensitive is its value to tution's approach to managing both the accountchanging rates. (Hereafter, modified duration ing and economic aspects of interest rate risk will be referred to simply as duration. See the during their overall review of a bank's funds appendix for details.) management process. Traditionally, examiners By estimating the durations of assets, liabili- have evaluated the stability of net interest marties, and off-balance-sheet positions, a bank can gins and net interest income as well as the estimate the net duration of its portfolio and the underlying nature and apparent riskiness of the interest sensitivity of the present value of its net positions a bank holds. Their review places much worth. In this sense, duration analysis offers a importance on the adequacy of internal reportmore comprehensive approach to measuring in- ing, auditing, and information systems and on the terest rate risk by incorporating the entire spec- bank's policies and procedures for measuring trum of a bank's repricing mismatches. It ex- and controlling its risk. If the exposure is considpands the basic maturity gap approach to assess ered excessive given the bank's capital and exthe effects of changes in rates on the present pertise, the supervisor reviews the matter with value of all future earnings, not just on next the bank's senior management and directors and year's book earnings. requests corrective action. If necessary, the bank Duration analysis has several disadvantages, will be required to develop and implement a however. Its accuracy as a measure of interest formal plan for reducing the risk and for restrucrate sensitivity declines as the size of the rate turing the bank's risk management and control change increases. In addition, its use typically systems. assumes instantaneous parallel shifts in the yield To date, this supervisory process has been curve. Duration analysis also requires a number generally satisfactory. However, with the rising of assumptions and complexities in order to importance of interest rate risk management, the incorporate the effects of options embedded in process is increasingly hampered by the absence many bank assets, liabilities, and off-balance- of a systematic method to monitor interest rate sheet positions. Finally, many managers have risk and by the lack of quantitative standards for difficulty translating duration measures into re- adjusting capital to cover that risk. More specific ported net interest income and other accounting procedures for quantifying and assessing a measures on which they have traditionally fo- bank's risk, if proven valid and effective, would cused. supplement and strengthen the supervision of To overcome the limitations of both maturity interest rate risk. To be effective, any quantifigap and duration analyses, some banks turn to cation of risk must consider the entire spectrum computer simulation. Sophisticated computer of mismatches. An approach that incorporates a models are used to simulate the effects of a wide monitoring system and related guidelines based array of interest rate scenarios on a bank's on the economic perspective is consistent with financial condition. Simulation models can gen- this principle. erate measures that address both the accounting and economic perspectives of an institution's interest rate risk exposure. However, as with many computer modeling techniques, simula- A SUPERVISORY APPROACH tions are highly data intensive, and the results FOR ASSESSING INTEREST RATE RISK rely heavily on assumptions. Moreover, the effects of these assumptions on the target variable Several considerations are relevant in the devela model assesses (for example, net interest in- opment of a supervisory framework for measur- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

628 Federal Reserve Bulletin • August 1991 ing and evaluating interest rate risk. First, the These factors argue for a comparatively simple more than 1,200 bank failures in the past decade supervisory approach to evaluating interest rate demonstrate that the principal risk to commercial risk. One way to achieve that simplification banks is credit risk. Although other risks—such would be to interpret the current risk-based as operating risk, foreign exchange risk, and capital standard as covering "normal" levels of a interest rate risk—can prove costly and must be bank's interest rate risk. The assumption avoids controlled, they are dominated in most cases by the need for an absolute measure of interest rate the threat of credit losses on loans. This situation risk and requires only a relative measure. Banks could change, of course, as the nature of banking that have more risk than the majority of banks evolves. Indeed, even in the past, interest rate could be identified through an off-site screening movements have produced significant losses at process, and a subsequent on-site review would some banks and have caused others to increase consider the specific circumstances of the idenrisk in other areas to offset problems caused by tified "outlier" banks. rate movements. Nevertheless, interest rate risk The measure to be used in this screening by itself has rarely caused a commercial bank to process would need to identify only relative fail when it was in otherwise sound condition. orders of magnitude of interest rate risk among Credit risk, therefore, should account for most of commercial banks. Some underlying assumpthe industry's capital requirement. tions may be imprecise, but if used consistently, Second, the complexity of a model's algo- they are not likely to mask the exposures of rithms and the precision of the data collected are banks facing the highest risk or cause truly often dominated by the underlying assumptions low-risk institutions to appear as outliers. used to derive a measure of interest rate risk. Even the most sophisticated measures of interest rate risk require certain assumptions that can AN INTEREST RATE RISK MEASURE materially affect the results. Many of these as- AND ITS INFORMATIONAL REQUIREMENTS sumptions relate to assets and liabilities with embedded options that make their cash flows A measure of interest rate risk under considerespecially difficult to predict. The interest rate ation for use in the screening process applies the sensitivity of core deposits is just one example. principles of duration analysis to the familiar The overriding influence of such assumptions maturity gap report. An advantage of duration suggests the need for caution in trying to estimate analysis over the use of simulation is its relative levels of interest rate risk across the entire indus- simplicity in reflecting the economic effects of try. changes in rates. It has the attractive attribute of Third, information requirements of any super- summarizing the interest rate risk exposure of an visory or regulatory system should be held to a institution in a single number. necessary minimum. The dominance of credit In brief, the risk measure under consideration risk, combined with the considerable difficulties is calculated by first classifying a bank's assets, in measuring interest rate risk, creates a trade- liabilities, and off-balance-sheet positions on the off: gains in the accuracy of interest rate risk basis of their contractual maturity or repricing measures must be balanced against the associ- dates and their cash flow characteristics. These ated increase in costs and reporting burdens and positions would then be weighted by risk factors the degree to which the overall precision of a that approximate their modified durations. The capital standard that included interest rate risk sum of these weighted positions would be the would be improved. Moreover, supervisory measure of interest rate risk to be used in comagencies do not need the same level of precision paring exposures among banks. that bank management may need. Regulators are Spread among eight maturity/repricing periods concerned principally with identifying significant ("time bands"), the information used to derive threats to a bank's solvency; they are less con- this measure fits on a single page (table 1 is a cerned with small changes to the bank's reported sample report for a hypothetical bank). In the earnings. interest of simplicity, only maturity/repricing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A Method for Evaluating Interest Rate Risk in U.S. Commercial Banks 629 1. Sample report of a hypothetical bank's positions by repricing period1 Millions of dollars Months Years IItteemm TToottaall More than 0-3 3-12 1-2 2-3 3-5 5-10 10-20 20 Assets Interest-bearing balances due 120 75 35 10 Securities (including trading) Amortizing 143 10 5 2 3 5 3 115 Nonamortizing 338 29 25 27 45 107 85 15 5 Deep-discount 151 81 40 5 5 5 8 5 2 Federal funds sold and securities purchased for resale 149 149 Loans, leases, and acceptances Amortizing 553 50 83 60 60 120 180 Nonamortizing 1,459 900 311 94 92 57 5 Deep-discount Total interest-bearing assets ... 2,913 1,294 499 198 205 289 103 23 302 Non-interest-bearing assets 380 Total assets 3,293 1,294 499 198 205 289 103 23 302 Liabilities Interest-bearing deposits NOW accounts 200 60 30 30 30 20 10 10 10 MMDAs 358 106 54 54 54 36 18 18 18 Savings 194 58 29 29 29 19 10 10 10 Time 1,355 700 611 10 15 16 3 Federal funds purchased and securities sold for repurchase ... 259 259 Other borrowed funds 162 100 40 3 3 4 12 Total interest-bearing liabilities .. 2,528 1,283 764 126 131 95 53 38 38 Non-interest-bearing liabilities Demand deposits 464 139 70 70 70 46 23 23 23 Other liabilities 91 Total liabilities 3,083 1,422 834 196 201 141 76 61 61 Net worth 210 Net off-balance-sheet positions Amortizing 0 20 -20 Nonamortizing 0 5 -5 High-risk instruments2 2 2 1. Repricing period is time remaining before maturity or interest rate 2. Included above in nonamortizing and deep-discount securities. See disadjustment. cussion in text. data are recorded; assumptions regarding coupon ever, one must consider the actual repricing rates on assets and liabilities and other features periods of bank assets and liabilities; most are of financial contracts are made in developing the heavily concentrated in the short-term. Taking risk weights. both points into account, the illustrated repricing The characteristics of duration heavily influ- schedule employs eight time bands that incorpoenced the structure of the repricing schedule rate more precision in the shorter time periods. portrayed in table 1. One feature of duration is The nature of duration also influenced the that, other things equal, it is positively related to choice of the specific line items in table 1. The the maturity of the underlying instrument. As duration of a financial instrument depends upon maturity extends, however, the duration of most the timing of its cash flows, which are a function instruments increases at a decreasing rate so that of maturity, coupon rate, amortization, and other the durations of the longest-term instruments are factors. The cash flows of most bonds and comgenerally less than ten years (chart 1). This mercial loans consist of periodic payments of pattern suggests that perhaps eight to ten time interest only, and repayment of all principal at bands with equally spaced durations could cap- maturity. Mortgages and consumer loans, in conture the interest rate sensitivity of most loan or trast, generally amortize; that is, their periodic investment portfolios. At the same time, how- payments include both principal and interest. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

630 Federal Reserve Bulletin • August 1991 1. Modified duration of a 10 percent semiannual 10 percent is 28.6 years.3 To capture the effect of coupon instrument yielding 10 percent, by maturity these distinctly different payment streams, the of the instrument repricing schedule categorizes all securities, loans, and off-balance-sheet items into one of Modified duration three groups according to their inherent cash flow structures: amortizing, nonamortizing, and deep-discount. In the interest of simplicity and of minimizing the burdens of collecting data, the balances of loans and securities are generally distributed across the time bands of table 1 using the contractual maturity or repricing date of the instrument. Anticipated prepayments on amortizing instruments are incorporated in the calculation of the interest rate risk weights using standardized assumptions. The only exception to 0 5 10 15 20 25 30 this distribution procedure is the treatment of Maturity, years tranches of collaterized mortgage obligations (CMOs) and real estate mortgage investment Still other instruments, such as deep-discount conduits (REMICs). Because of their wide diverand zero coupon bonds, have most or all of their sity, such tranches are slotted according to their payments of both principal and interest occur at current average life as calculated by bank manmaturity. These distinctions alone can cause the agement.4 durations of instruments with similar maturities to be significantly different. Core Deposits For example (chart 2), a 30-year, 10 percent coupon Treasury bond yielding 10 percent has a Time deposits and other liabilities with wellduration of about 9.5 years. However, the duradefined maturities are easily distributed across tion of a 30-year, 10 percent amortizing mortgage the time bands of table 1. However, the indefinite yielding 10 percent with no prepayment is about maturities of core deposits (demand deposits, 8 years but could be as short as 4-6 years if NOW accounts, money market deposit accounts, common levels of prepayment are assumed. The and savings deposits) pose significant problems. duration of a 30-year zero coupon bond yielding These deposits are usually stable but can be withdrawn at any time. In addition, their repric- 2. Modified duration of three instruments, each ing tends to lag changes in market rates and can yielding 10 percent, by maturity of instruments vary from bank to bank according to each insti- Modified duration tution's geographic location, pricing strategies, and depositor base. Because of their uncertain maturities, core deposits could be placed into a single time band — 20 — Zero coupon or spread among several bands. If a single band is Coupon1 — 3. The Macaulay duration of a thirty-year zero coupon bond is indeed thirty years. Because zero coupon yields are Amortizing2 quoted as semiannual equivalents, their modified duration is slightly less than maturity (see the appendix for the calcularTui i i i i i i i i i it t 1 1 1 1 1 11 II 1 1 1 tion of modified duration). 0 5 10 15 20 25 30 4. Most off-balance-sheet items are recorded on the repric- Maturity, years ing schedule with a double-entry system of offsetting long and short positions. The two offsetting entries result in an aggre- 1. Ten percent semiannual coupon. 2. Ten percent monthly amortizing instrument, assuming no pre- gate net position that changes the repricing structure of the payments. portfolio without changing its face value. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A Method for Evaluating Interest Rate Risk in U.S. Commercial Banks 631 chosen, the shortest one would be a logical instrument with a remaining maturity equal to the choice because the deposits are all subject to midpoint of each time band and an assumed immediate withdrawal. However, the experience coupon and market yield. For simplicity, a single of most banks indicates that these deposits could coupon is assumed for each of the three sets of have longer effective maturities or repricing pe- assets and another coupon is assumed for all riods. A standard industry practice is to distrib- liabilities; these coupons are assumed to equal ute deposits among several periods to reflect the market yields. For illustrative purposes, the fact that they tend to run off over time.5 Table 1 weights presented here are based on a 10 percent illustrates a possible distribution of core deposits coupon for assets and an 8 percent semiannual among the time bands, which produces an aver- coupon for liabilities. age maturity of 2.5 years. Some such standard- To handle the problem posed by the prepayized distribution for all banks would be used in ment options embedded in amortizing assets, practice. prepayment adjustments are made to the weights for the amortizing assets. Intermediate- and long- High-Risk Assets term amortizing assets are assumed to be primarily mortgages and mortgage securities. For those The repricing schedule gives special treatment to instruments, a market consensus of the rate at certain positions in highly volatile and complex which mortgages with the assumed coupon are derivative instruments, such as interest-only and expected to prepay is used to construct their principal-only stripped mortgage-backed securi- weights. For example, a weight of 4.6 is used for ties and CMO residuals (shown in table 1 as amortizing assets with maturities of more than high-risk instruments).6 Examiners would also twenty years. This weight is the duration of a 10 give them special attention during on-site exam- percent, thirty-year mortgage with a remaining inations and would closely assess the risk they term to maturity of twenty-five years and an present to an individual institution. assumed 9 percent constant annual prepayment rate. That rate was the average prepayment Derivation of Risk Weights estimate of eight U.S. securities firms as of June 1, 1991, for a Government National Mortgage In the measurement system under consideration, Association pass-through security with a gross each recorded position is multiplied by a risk coupon of 10 percent. For amortizing assets with weight that approximates its duration to produce remaining maturities of less than five years, a a risk-weighted value. Table 2 illustrates the prepayment rate of 1 percent is assumed. In calculation. The top panel summarizes the posi- implementing the proposed measurement systions reported in table 1. The middle panel dis- tem, the weights for these assets can be updated plays the risk weights. The system employs four periodically to reflect changes both in coupon sets of risk weights: one set for each of the three assumptions and in the market consensus of types of assets (amortizing, nonamortizing, and prepayment rates. deep-discount) and one set for all liabilities. The weights are calculated as the duration of an CALCULATING THE RISK MEASURE 5. Note that with careful selection of the time bands, spreading the liabilities among many repricing periods will In the construction of the risk weights, the produce the same result as putting them in one period. 6. In January 1991 the Federal Financial Institutions Ex- estimated durations are multiplied by 0.01 to amination Council (FFIEC) issued for public comment a convert them into percentages. As a result, the proposed supervisory policy statement that would, in part, weights estimate the percentage decrease in the designate certain types of securities with volatile price or other high-risk characteristics as generally unsuitable invest- present value of a position that results from a 1 ments for depository institutions. Such securities include percentage point increase in market rates (or stripped mortgage-backed securities, high-risk CMO the increase in value that results from a detranches, and CMO residuals. The FFIEC is expected to announce a policy statement on this issue in the near future. crease in rates). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

632 Federal Reserve Bulletin • August 1991 2. Calculation of interest rate risk for positions of a hypothetical bank1 Millions of dollars except as noted Months Years Item Total More than 0-3 3-12 1-2 2-3 3-5 5-10 10-20 20 1 Interest-bearing assets 2,913 1,294 499 198 205 289 103 23 302 2 Amortizing 696 60 88 62 63 120 5 3 295 3 Nonamortizing 2,066 1,153 371 131 137 164 90 15 5 4 Deep-discount 151 81 40 5 5 5 8 5 2 5 Liabilities (interest-bearing and demand-deposit) -2,992 -1,424 -834 -196 -201 -141 -76 -61 -61 Net off-balance-sheet positions 6 Amortizing 0 20 -20 7 Nonamortizing 0 5 -5 8 High-risk instruments 2 2 Risk weights (percent) Assets 9 Amortizing .10 .30 .60 1.00 1.50 2.60 3.90 4.60 10 Nonamortizing .15 .60 1.35 2.15 3.20 5.20 7.70 9.10 11 Deep-discount .15 .60 1.45 2.40 3.80 7.10 14.30 23.80 12 Liabilities .15 .60 1.40 2.20 3.40 5.60 8.70 10.70 Weighted positions 13 Assets 39.66 1.91 2.73 2.21 3.70 7.24 5.38 1.99 14.50 14 Liabilities -35.14 -2.14 -5.00 -2.74 -4.41 -4.81 -4.24 -5.29 -6.51 15 Off-balance-sheet positions -.20 .03 -.12 -.11 16 Subtotal (initial estimate of exposure) 4.32 -.20 -2.27 -.64 -.82 2.42 1.13 -3.30 7.99 17 Adjustment for high-risk instruments .48 .48 18 Weighted net position 4.80 -.20 -2.27 -.64 -.82 2.42 1.13 -3.30 8.47 19 Duration of net worth (weighted net position as a percent of net worth x 100) 2.28 20 Sensitivity index (weighted net position as a percent of assets) ..1155 1. See table 1. Components may not sum to totals because of rounding. Multiplying a position by a risk weight esti- 13-16, first column) shows that the bank's net mates the dollar change in the present value of the worth is vulnerable to rising interest rates. Overposition for a 1 percentage point change in market all, a 1 percentage point increase in market rates rates. For example, in line 1 of table 2, the $1,294 would reduce the present value of the bank's million position in interest-bearing assets matur- assets an estimated $39.66 million (line 13) and ing or repricing in less than three months is lower the present value of its liabilities $35.14 weighted by multiplying each of its three compo- million (line 14). The illustrated off-balance-sheet nents (lines 2-4) by their respective weights (lines positions offset the decline in the value of assets 9-11) and summing. The result is a weighted value by $0.2 million (line 15), producing an initial of $1.91 million (line 13). Assuming that current estimate of exposure of $4.32 million (line 16) for balances yield market rates, this weighted value a 1 percentage point increase in rates. can be interpreted as the decline in the present At this point, an adjustment to the exposure is value of the recorded positions for a 1 percentage made for the presence of high-risk instruments point increase in rates (or the increase in value (line 8) in the portfolio. The complexity of these that results from a decline in rates). instruments makes them difficult to incorporate The summation of all weighted values for as- into the proposed screening measure. To mainsets, liabilities, and off-balance-sheet items (lines tain a practical level of simplicity in the assess- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A Method for Evaluating Interest Rate Risk in U.S. Commercial Banks 633 ment process, high-risk instruments are given the Considered alone, however, this estimate of the same weight as that of deep-discount assets (line duration of net worth might not detect those 11) in the corresponding time band and the same banks that have significant mismatches but high sign as that of the initial estimate of exposure capital ratios. Apart from the risk to the solvency (line 16). In this way, the process draws the of the bank that any asset-liability mismatch may attention of the examiner to the high-risk position present, the degree of interest rate sensitivity is because that position is always portrayed as also important to know. That knowledge provides increasing the absolute value of the initial esti- insights into the nature of the bank's business and mate of exposure. The actual interest rate risk its managerial approach. Moreover, some banks profile of these instruments, as well as their need relatively strong capital ratios to support appropriateness for a particular institution, greater-than-average exposure to asset quality would be assessed on-site by the examiner. problems or other banking risks. Viewing those In the example, the $2 million high-risk posi- institutions as having low interest rate risk simply tion (line 8, last column) is multiplied by the risk because they have high capital ratios could be weight of 23.8 percent (line 11); because the inappropriate. Expressing the weighted net posiinitial estimate of exposure (line 16) is positive, tion as a percent of total assets (line 20) provides the product—$0.48 million—is added to the $4.32 a second measure, called the "sensitivity index," million subtotal to derive the overall weighted which focuses directly on the degree of sensitivity net position of the institution of $4.80 million of the bank's positions to changing interest rates (line 18). Had the initial estimate of exposure (0.15 percent in the example). been negative, a negative sign would have been Both risk measures have a parallel in the assigned to the high-risk position to increase the analysis of bank profitability. That is, using both negative exposure of the institution. Recognition the duration of net worth and the sensitivity of the potential macro- or micro-hedging capabil- index to evaluate a bank's interest rate risk could ities of these instruments is left to the discretion be compared to using return on equity (ROE) and of the examiner. return on assets (ROA) to evaluate its profitabil- The weighted net position (line 18) is a key ity. The ROE and ROA compare reported earnstatistic. When divided by net worth and multi- ings with their respective denominators. The two plied by 100, it represents the implied risk weight interest rate risk measures compare estimates of for the bank's net worth and gives a summary the expected change in the present value of measure of interest rate risk exposure. In the future earnings (which is the change in net worth) example, the estimated exposure of net worth to with those same denominators: The duration of a 1 percent increase in rates is 2.28 percent of the net worth indicates the interest rate sensitivity bank's total net worth. When multiplied by 100, relative to equity; the sensitivity index indicates this implied risk weight can be used as an esti- the interest rate sensitivity relative to the asset mate of the bank's duration of net worth and as a base. Combined, the two interest rate risk meameasure of the vulnerability of the institution to sures enable examiners to quantify the rate seninsolvency as a result of interest rate changes. sitivity of a bank's on- and off-balance-sheet This measure of the duration of net worth is of positions and assess its ability to absorb losses central importance in the screening process and that the mismatches might produce. can play an important role in an examiner's assessment of interest rate risk.7 IDENTIFYING OUTLIERS As described above, this approach recognizes that a certain amount of interest rate risk is 7. The use of this measure in screening banks may identify some institutions as having high interest rate risk simply inherent in banking. Consequently supervisory because their capital ratios were low; although that assess- attention would be directed at those banks idenment would not be incorrect, interest rate risk is most likely tified as having relatively high risk—outliers. to be overwhelmed by other problems that already are the focus of supervisory attention. Using an outlier approach, however, requires Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

634 Federal Reserve Bulletin • August 1991 information about the distributions of both the 3. Sensitivity index of interest rate risk, estimated sensitivity index and duration of net worth for distributions for the U.S. banking industry, by the industry. assumed maturity of core deposits, The data to develop these distributions as ac- December 31, 19901 curately as would be required are not available Percent of banks from financial reports currently filed with regulatory agencies. Maturity and repricing data, for example, are reported for only four time bands, and the longest period contains all positions repricing in more than five years. These constraints, and similar ones regarding information about the cash-flow structure of assets, require a number of assumptions in order to use existing data. To construct an estimate, we have used existing call report data to illustrate how the distributions Sensitivity index (percent) might look, subject to the above caveats, and how 1. Sensitivity index is the weighted net position as a percent of assets outliers could be identified. (see table 2). Measurement covers 12,127 commercial banks. Shaded Outliers would be defined on the basis of both areas represent the roughly 25 percent of banks most vulnerable to rising or falling rates assuming an average maturity for core deposits their sensitivity index and their durations of net of 2.5 years. Preliminary measure using existing call report data worth. For both measures, outliers would be and simplifying assumptions. taken from both tails of an industry distribution curve to recognize exposures to rising and de- percent on each tail of the distribution would clining rates. The riskiest 25 percent, for exam- capture approximately 25 percent of the banks: ple, could be considered outliers. about 16 percent that are exposed to rising inter- In constructing a distribution of the industry's est rates (those on the right side in chart 3) plus exposure to changing interest rates, the placement another 9 percent that are exposed to declining of core deposits is of primary importance. When rates (those on the left). core deposits are spread to produce a weighted A similar approach could be used to identify average maturity of 2.5 years, the median institu- outliers on the basis of their durations of net tion appears to be virtually balanced in terms of its worth. Once again, the median bank appears to sensitivity index (chart 3, middle curve). be almost balanced, with 0.23 percent of its Placing core deposits at an average maturity of equity at risk from a 1 percentage point increase either 1.5 months or 5 years yields significantly in rates (chart 4). Outliers could be defined, for different results and illustrates the sensitivity of example, as those institutions with roughly 7-8 the measure to changes in the selected maturity percent or more of their net worth at risk. That of deposits. A short-term placement sharply in- cut-off would capture approximately 25 percent creases the apparent exposure of the industry to of the industry: about 15 percent from the banks rising interest rates; placing the deposits at 5 with relatively high exposure to rising rates and years would indicate that the industry is highly another 10 percent from those with a large expoexposed to declining rates. These distributions, sure to declining rates. These 25 percent would while only illustrative, suggest that viewing core then be compared with the outliers identified deposits as having a maturity of two to three with the sensitivity index to determine which years is not only operationally useful in con- institutions appear to warrant the most concern. structing a measurement system but is also con- As with many elements of the measure, the sistent with a perception that the large majority identification of outliers must be carefully moniof commercial banks do not have high exposures tored and updated as conditions change. If the to interest rate risk. industry became much more cautious, for exam- In the middle distribution of chart 3, the me- ple, fewer institutions would be identified as outdian bank has an estimated sensitivity index of liers. Conversely, more banks would become out- 0.02 percent. A cut-off point around 0.6-0.7 liers if the overall exposure of the industry grew. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A Method for Evaluating Interest Rate Risk in U.S. Commercial Banks 635 4. Duration of net worth, estimated distribution for No firm conclusions would be based on these the U.S. banking industry, December 31, 19901 measures alone. Examiners would need to con- Percent of banks firm or reject the measure based on their assess- Exposure to falling interest rates Exposure to rising interest rates ment of many of the elements they currently — I —50 review: the bank's own policies, controls, information systems, and risk-measurement tech- — / \ —40 niques. Examiners would continue to apply sig- — \ —30 nificant flexibility in their consideration of the ] conditions at each bank. In particular, nothing in —— y \ —20 the approach described here would preclude ex- V — 10 aminers from employing other relevant techniques based on the bank's own internal reports, 30 20 10 - 0+ 10 20 30 systems, and controls regarding interest rate risk. Duration of net worth Nevertheless, the approach can provide exam- 1. Duration of net worth is the weighted net position as a percent iners with a reference point for evaluating the of net worth x 100 (see table 2). Measurement covers 12,127 commercial banks. Shaded areas represent the roughly 25 percent of banks most riskiness of a bank's positions and guidelines for vulnerable to rising or falling rates assuming an average maturity for evaluating the adequacy of its capital. Also, core deposits of 2.5 years. Preliminary measure using existing call report data and simplifying assumptions. bankers may find the comparison of their banks with the industry useful. The measurements re- The distributions illustrated in charts 3 and 4 quire no more than simple spreadsheet calculaare estimates based on the limited data currently tions and thus can be performed on-site to test reported by the banking industry and are shown the effect of different assumptions, such as those here not as empirical evidence but only for heu- regarding the maturity of core deposits. ristic purposes. No information is available about The more sophisticated simulation analyses the repricing periods of the industry's off-balance- conducted by some banks could offer further sheet positions; much of the placement of bal- insights into the likely losses (or gains) under a ances among time bands was estimated; and core variety of scenarios. Combined, these measures deposits were distributed uniformly, and thus and techniques could lead to reasonably firm somewhat arbitrarily, for all banks. conclusions about the bank's overall exposure to interest rate risk and what corrective steps may be needed. APPLYING THE RISK MEASURE Bank supervision entails both off-site surveillance CONCLUSION and on-site examinations. If implemented, the procedure described here for measuring interest The measurement approach described above reprate risk would be another tool to help bank resents the first phase of a supervisory program supervisors screen banks off-site to identify those for evaluating interest rate risk in commercial with relatively high levels of measured interest banks. These guidelines and principles will be rate risk. Supervisors could then take appropriate further developed and field-tested before their follow-up actions, such as requesting additional formal incorporation in examination procedures. information from the bank or considering the Limited field testing to date indicates that this apparent risk when planning future examinations. approach can be used to identify institutions that Once on-site, examiners could use the interest may be exposed to high levels of interest rate risk rate risk measures as an indicator of how they and to establish an initial reference point for might allocate their time and resources. Institu- examiners in evaluating a bank's management of tions with apparently high interest rate risk would its investment and funding activities. At the same be more likely to receive more detailed reviews of time, it allows examiners significant flexibility to their asset and liability management procedures consider many other factors that are important to than would those exhibiting lower risk. assessing this aspect of the bank's business, such Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

636 Federal Reserve Bulletin • August 1991 as its policies, procedures, controls, and operat- TPV = The total present value of all future ing systems. cash flows (including accrued interest) The measurement and management of interest rate risk is a complex topic but one that may n = The number of periods remaining until be of growing importance to banks and bank maturity. supervisors. Fundamentally, the management of interest rate risk and the allocation of capital Because a zero coupon instrument has only to support that risk is a bank function that, like one cash flow, its Macaulay duration is equal to others, must be conducted in a reasoned and its maturity. In contrast, instruments with periprudent manner. In its consideration of this odic cash flows, such as coupon bonds and risk, the approach described here recognizes amortizing mortgages, have durations smaller the limits to precision and the reporting cost to than their maturity. banks. A measurement system based on rela- Duration is measured in units of time. Relative tive levels of exposure that gives examiners to the more traditional measure of term to matusufficient flexibility appears to avoid many of rity, duration represents a significantly more sothe disadvantages of other techniques. phisticated measure of the effective life of a financial instrument. Moreover, when modified to reflect an instrument's discrete compounding of interest, duration measures the instrument's price APPENDIX: DURATION volatility relative to changes in market yields. Modified duration is calculated as follows: Duration is a widely accepted measure of a financial instrument's interest rate risk. In its Macaulay duration Modified duration = most basic form, "Macaulay duration," it is a 1 +R/c measure of the effective maturity of an instruwhere ment. Specifically, duration is the weighted average maturity of an instrument's cash flows, R = Per-period internal rate of return of the where the present values of the cash flows serve instrument as the weights. The Macaulay duration of an instrument can be calculated by first multiply- c = Number of times per period that interest ing the time until the receipt of each cash flow is compounded (for example, 2 for a semiby the ratio of the present value of that cash annual coupon bond when R is an annual flow to the instrument's total present value. The rate). sum of these weighted time periods is the Macaulay duration of the instrument. Mathe- Modified duration is the price elasticity of an matically, instrument with respect to changes in rates. It represents the percentage change in the present n PV(CF) value of a financial instrument for a given per- Macaulay duration = ^ - x t, centage point change in market yields; this relat= 1 TPV tionship is defined as follows: where basis point change t = The number of periods remaining until Percentage Modified in yield change = the receipt of cash flow CF t in price duration 100 CF = The cash flow received in period t For example, with a modified duration of 10, a bond t changes 10 percent in price for every 100 basis point PV = The present value function 1/(1 + R)', change in the market yield of that bond. where R is the per-period internal rate In the above equation, the inverse relationship of return of the instrument between the price of a bond and its market yield Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A Method for Evaluating Interest Rate Risk in U.S. Commercial Banks 637 is established by the minus sign preceding the worth is simply a weighted average of the duraterm for modified duration. Modified duration tions of assets and liabilities. Therefore, by acts as a multiplier in translating the effect of weighting assets, liabilities, and off-balancechanging interest rates on the present value of an sheet positions by their estimated durations, a instrument: The larger the duration, the greater single measure of interest rate risk exposure can the effect for a given change in interest rates; and be derived. for a given duration, large changes in market Modified duration is a powerful concept for rates lead to large percentage changes in price. measuring interest rate risk, but it does have Therefore, to the extent that the riskiness of an several limitations. The most noteworthy is that instrument is equated with its price sensitivity, the accuracy of duration depends on the assumpmodified duration acts as a measure of interest tion of small, instantaneous, parallel shifts in the rate risk. yield curve. Errors in its use as a measure of Modified duration provides a standard mea- interest rate risk increase as actual changes in sure of price sensitivity for different types of market yields diverge from these assumptions.8 • instruments. The standardization allows the duration of a portfolio to be calculated as the weighted average of the durations of its individ- 8. Further information on duration is available in Livingual components. Because a financial institution ston G. Douglas, Bond Risk Analysis: A Guide to Duration and Convexity (New York: New York Institute of Finance, can be thought of as a portfolio of assets and 1990); and Gerald O. Bierwag, Duration Analysis: Managing liabilities, the duration of an institution's net Interest Rate Risk (Cambridge, Mass.: Ballinger, 1987). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

638 Industrial Production and Capacity Utilization Released for publication on June 14 and utilities, industrial production was little changed in both May and April. Total industrial capacity Industrial production increased 0.5 percent in May utilization in May increased 0.2 percentage point to after an upward revised gain of 0.3 percent in April. 78.7 percent, after a revised increase of 0.1 percent Output of motor vehicles and parts continued to rise in April. At 105.8 percent of its 1987 annual average, in May, and utilities production, boosted by unusu- total industrial production in May was 3.3 percent ally warm weather in May, also contributed to the below its year-ago level. overall gain. Excluding motor vehicles and parts In market groups, output of consumer goods Industrial production indexes Twelve-month percent change Twelve-month percent change 5 + 0 5 + 0 5 J | L 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 — Manufacturing _ Capacity -— ~ - / Production — i i i i i i i i i i i i Percent of capacity Total industry Manufacturing — — 90 Utilization Utilization — \ - V. - 80 70 i i i i 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, May. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

639 1987 = 100 Percentage change from preceding month PPPeeerrr--ccceeennntttaaagggeee ccchhhaaannngggeee,,, IIInnnddduuussstttrrriiiaaalll ppprrroooddduuuccctttiiiooonnn 1991 1991 MMMaaayyy 111999999000 tttooo Feb.r Mar.r Apr.' May Feb.' Mar.' Apr.r Mayp MMMaaayyy 111999999111 Total index 105.7 105.0 105.3 105.8 -.9 -.6 .3 .5 -3.3 Previous estimates 105.7 105.0 105.1 -.8 -.6 -.1 Major market groups Products, total 106.9 106.6 106.9 107.3 -.8 -.3 -.3 .4 -3.0 Consumer goods 104.7 104.9 105.5 106.3 -.8 .1 .6 .8 -1.1 Business equipment 120.6 120.3 121.0 120.6 -.9 -.2 .6 -.3 -2.4 Construction supplies 96.4 94.2 95.3 95.8 -1.3 -2.3 1.2 .5 -9.2 Materials 103.9 102.6 103.0 103.6 -.9 -1.2 -.4 .6 -3.8 Major industry groups Manufacturing 106.1 105.2 105.7 105.9 -.9 -.8 .5 .2 -4.0 Durable 106.1 105.0 105.9 106.1 -1.0 -1.1 .8 .2 -5.8 Nondurable 106.0 105.4 105.5 105.7 -.8 -.6 .1 .2 -1.6 Mining 102.9 101.6 100.1 100.0 1.1 -1.3 -1.5 -.1 -2.2 Utilities 104.6 106.3 106.4 110.6 -2.8 1.7 .1 3.9 3.3 Percent of capacity Capacity growth, Capacity utilization 1990 1991 May 1990 Average, Low, High, to 1967-90 1982 1988-89 May Feb.' Mar. Apr. MayF May 1991 Total industry 82.2 71.8 85.0 83.4 79.1 78.4 78.5 78.7 2.6 Manufacturing 81.5 70.0 85.1 82.9 78.0 77.2 77.4 77.3 2.9 Advanced processing 81.1 71.4 83.6 82.1 77.4 76.8 77.1 76.9 3.2 Primary processing . 82.4 66.8 89.0 85.0 79.5 77.9 78.1 78.3 2.2 Mining 87.4 80.6 87.2 88.9 90.4 89.1 87.7 87.5 -.6 Utilities 86.8 76.2 92.3 84.6 81.6 82.9 82.9 86.1 1.5 r Revised, NOTE. Indexes are seasonally adjusted. p Preliminary. excluding motor vehicles and electricity for residen- surged in response to increased demand for air tial use edged up in April and May, owing mainly to conditioning. gains in production of durable goods such as In industry groups, output in manufacturing appliances, carpeting, and furniture; production of increased 0.2 percent in May; excluding motor most other consumer goods has changed little in vehicles and parts, manufacturing output was recent months. Output of business equipment other unchanged from April. Utilization for manufacturthan autos and trucks declined 0.6 percent in May ing as a whole edged down 0.1 percentage point in and has fallen more than 3 percent since its peak last May. The operating rate for primary processing September; declines over the past eight months have industries picked up a bit in May, while the rate for been most significant in industrial equipment. advanced processing declined. Output at utilities Production of construction supplies increased increased 3.9 percent in May, and production at 0.5 percent in May after a rise of 1.2 percent in April mines was little changed. but was still more than 9 percent below its level of a Among producers of nondurable goods, producyear earlier. Among materials, output of durables tion of both textiles and apparel rose notably in April increased 0.5 percent further in May, reflecting and May. Textile output ha s now increased for four increases in output of parts for consumer goods, consecutive months. An increase of 2 percent in particularly those used by the motor vehicle industry. petroleum refining in May also helped boost produc- Production of basic metals, mainly steel, and tion of nondurables. In contrast, paper production equipment parts remained weak. Output of nondu- fell 0.9 percent in May, continuing the decline that rable goods materials was little changed for the began last fall. second month, as gains in textiles were about offset Output of durable goods: increased in both April by decreases in paper. Output of energy materials and May, with significant gains in motor vehicles rose 1.4 percent in May, as electricity generation and parts and industries that produce construction Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

640 Federal Reserve Bulletin • August 1991 materials, mainly lumber, and stone, clay, and glass little changed in April and May, after having fallen products; in addition, industries associated with sharply during the fall and winter. On the negative these materials, such as appliances, furniture, and side, output of both nonelectrical machinery and fabricated metals, also have increased during the instruments continue to decline, falling more than past two months. Production of primary metals was Vi percent in May. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

641 Statements to the Congress Statement submitted by the Board of Governors Consequently, we believe that the imposition of of the Federal Reserve System to the Subcom- cleanup liability on lenders is counterproducmittee on Policy Research and Insurance of the tive to long-term environmental goals and we Committee on Banking, Finance and Urban Af- support the objectives of H.R. 1450 and S.651 to fairs, U.S. House of Representatives, June 6, limit lender liability for cleanup costs under 1991. CERCLA. Under CERCLA, the owner or operator of a I would like to thank you for the opportunity to property may be held liable for the entire cost of discuss the issues of lender liability under the cleaning up hazardous substances found on a Comprehensive Environmental Response, Com- site, regardless of whether the owner or operator pensation, and Liability Act of 1980 (CERCLA) is responsible for the release of the hazardous as well as the solutions to this problem proposed substance. By its terms, CERCLA generally by H.R. 14550 and S.651. The issues presented in excludes secured lenders from this liability; howthis legislation are complex, and I commend the ever, recent court decisions have largely eroded committee for undertaking to explore them fully the protection furnished by this exclusion. at this time. Courts have imposed lender liability under As an initial matter, we strongly support the CERCLA when a lender secured by property purposes of CERCLA. We all wish to live in a forecloses on property or has "participated in the clean and healthy environment; however, the management" of its borrowers by virtue of the costs of achieving this goal are substantial. The rights reserved by the lender under its lending Environmental Protection Agency has estimated and security agreements with the borrower. With that the cleanup of the 1,200 priority sites alone the average projected cost of remedying contammay exceed $30 billion. The General Accounting ination at sites on the National Priority List Office has estimated that as many as 425,000 sites climbing to more than $25 million dollars, liabilmay need investigation and possibly cleanup. In ity in CERCLA cases may far exceed the amount light of these potential costs, we have become of the lender's original loan. concerned over the effect of recent court inter- Because of the erosion of the secured lender pretations of CERCLA that have held lenders exemption, lenders to borrowers in businesses liable for the cost of the cleanup of hazardous that use or produce hazardous substances are substances found on a borrower's property. De- faced with a dilemma. Lenders can actively spite an exemption in CERCLA designed to attempt to police hazardous substance disposal shield lenders from CERCLA liability, these by their borrowers, risking being found to have decisions, in effect, place lenders in the role of "participated in the management" of the borpolicing the hazardous substance disposal activ- rower and therefore liable for potential cleanup ities of their borrowers. Lenders are often ill costs, or they can ignore the borrowers's activiequipped to perform this function, and imposi- ties and risk nonpayment of the loan. Further, tion of unlimited liability can be expected to these court decisions may discourage even norreduce their willingness to provide credit to mal loan collection practices out of concern that prospective borrowers in any business or area they will be found to constitute management. when there is a risk of CERCLA liability. A Lenders already have adequate incentives to reduction in the availability of credit threatens encourage their borrowers to engage in environthe viability of these businesses and their ability mentally safe practices so that these borrowers to contribute to the cleanup of the environment. will avoid CERCLA liability. However, lenders Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

642 Federal Reserve Bulletin • August 1991 do not generally have the technical expertise to duce hazardous substances in their operations. police the environmental aspects of a borrower's In some cases it appears that banks are declining operations. Covenants in borrowing agreements to make loans regardless of the safety of a that give lenders a voice in their borrower's borrower's handling of hazardous substances. activities are designed to ensure that the bor- In addition, banks are examining property rower acts prudently in financial matters and carefully before they foreclose on it and are places a high priority on the repayment of the sometimes walking away from their collateral to debt, not to permit the lender to substitute its avoid environmental liability. This problem apjudgment for the borrower's in technical aspects pears to be widespread and is not confined to of the borrower's business. industrial areas of the country or to particular Imposing affirmative liability for environmen- types of businesses. Virtually every Federal Retal cleanup costs on lenders because of the serve Bank reported instances when lenders had exercise of such covenants is likely to do little to walked away from collateral, even when the prevent the pollution of the environment but is collateral was the only source of repayment for likely to interfere with the availability of credit to the loan. The experience of walking away from even prudent businesses that use hazardous sub- collateral to avoid CERCLA liability is likely to stances, such as farmers, dry cleaners, service cause lenders to become increasingly cautious stations, and chemical and fertilizer producers. about loans to many businesses or areas, even if Credit is a necessity for the operation of com- no actual liability has been incurred under mercial enterprises. Lenders already reluctant to CERCLA. extend credit to borrowers that are subject to a In carrying out its examination and supervihigh risk of CERCLA liability will only be further sory activities, the Federal Reserve expects deterred by the prospect of affirmative lender banking organizations to have policies and proliability under CERCLA. Increased lender reluc- cedures in place to monitor and control the risks tance to provide funds to industries or areas that to which banking organizations are exposed. present a risk of CERCLA liability is likely to However, banks have experienced difficulty in have a significant adverse effect on these indus- determining the appropriate protective practices tries or areas. to minimize the potential for CERCLA liability. Lack of credit in these cases may also frustrate Lending institutions are at risk for hazardous environmental interests. Companies that are un- waste liability whether they have ignored hazardable to continue operating because they cannot ous waste issues altogether or have actively obtain credit will not be able to make any con- attempted to monitor the safety of their borrowtribution to the environmental cleanup costs. ers' operations. The Board currently is develop- Consequently, the current thrust of court deci- ing guidelines for bank examiners to follow in sions imposing lender liability under CERCLA determining whether a lending institution has may actually frustrate the environmental goals of adopted appropriate procedures and safeguards CERCLA and increase the cleanup costs that to recognize potential hazardous substance probmust be borne by the government. lems. Unfortunately, given the current state of While the Board does not have comprehensive the law, there is no clear guidance that we can data on lender losses due to CERCLA liability to provide as to how an institution can extend credit date, clearly significant losses have already oc- and still avoid liability. curred. More important to the future is that data Besides private sector liability, CERCLA from the Federal Reserve Banks suggest that raises significant issues concerning the funding of CERCLA liability is, in fact, affecting the avail- government operations. Many lending instituability of credit. Banks are developing environ- tions that are potentially subject to CERCLA mental guidelines that often indicate that the liability are federally insured through the bank lender should decline to make loans collateral- and thrift insurance funds. Unlimited liability ized by real property when past uses may have under CERCLA poses a potential threat to the resulted in contamination of the property or to capital and solvency of these institutions and in make loans to businesses that may use or pro- some cases could result in the costs of hazardous Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 643 substance removal being borne by the bank and trol" that "materially divests the borrower, thrift insurance funds. We understand that the debtor, or obligor of such control" to be held Federal Deposit Insurance Corporation (FDIC) liable for cleanup costs. Lenders with a security has already incurred losses as a result of interest in property or lenders that had acquired CERCLA. title to the property through foreclosure or other Further, many agencies and instrumentalities means primarily for the purpose of protecting a of the federal government, such as Federal Re- security interest would not be subject to liability. serve Banks, Federal Home Loan Banks, the These limitations on liability would be available Farm Credit System, and the Small Business broadly to all lenders and would protect govern- Administration, are also lenders. Lender liability mental as well as private lenders. However, presents a threat to the ability of these organiza- under H.R. 1450 it is not clear whether lenders, tions to carry out the missions assigned to them either private or public, would be required to by the Congress. The Federal Reserve Banks perform an environmental evaluation to avoid fulfill important functions in providing adjust- liability. Lenders that caused or exacerbated the ment credit and acting as a lender of last resort release of hazardous substances would continue for depository institutions. In acting as lender of to be liable for costs resulting from their actions. last resort, a Federal Reserve Bank may advance In addition, lenders would still run the risk of funds to a depository institution collateralized by nonpayment from borrowers that incurred the institution's loans, which may, in turn, be CERCLA liability. secured by real property. Should the institution Rather than amend CERCLA directly, S.651 fail, the FDIC, as receiver, would likely acquire would amend the Federal Deposit Insurance Act the loans from the Reserve Bank and would be to limit the liability of mortgage lenders and left holding the loans. In these cases, the FDIC federally insured depository institutions for the would be exposed to lender liability to the same cost of hazardous substance removal. It appears extent as the original lender. that the liability of these lenders would be limited It is not appropriate to shift the risks and to the amount of the loan made by the lender or expenses of environmental cleanup costs from the actual benefit received by the lender from the the funds allocated by the Congress for this cleanup of the property, up to the amount of the purpose to the bank and thrift insurance funds or loan. S.651 also provides that mortgage lenders to governmental instrumentalities such as the or insured depository institutions will not be Federal Reserve Banks. Federal agencies and liable for cleanup costs based on their unexerinstrumentalities have been charged by the Con- cised capacity to influence the operations of a gress with particular responsibilities. Their funds borrower. Under S.651, however, a lender would are intended to be used to fulfill these responsi- lose all benefit of the exemption if it caused or bilities, not to cover the costs of hazardous contributed to the release of hazardous wastes, substance removal. and it is not clear under what circumstances a Any legislation to limit the application of lender would be considered to have caused or CERCLA liability should apply to all lenders and contributed to a release or what actions a lender should strive to delineate clearly those activities must take to prevent a release. This stringent that will lead to CERCLA liability. H.R. 1450 and standard, juxtaposed against the severe implica- S.651 present different approaches for reducing tions of being found responsible, could be a potential lender liability problems under serious inhibition to a lender's willingness to CERCLA for both the private and public sectors. lend. While each bill has strong points, both bills leave S.651 addresses the concerns of public sector unanswered questions as to what duties, if any, a lenders directly and provides protection for publender must perform to preserve the limitation on lic sector lenders by excluding them from liability its liability. for hazardous substance removal, by extending H.R. 1450 would amend CERCLA to require that immunity to the next purchaser of the propthat a lender exercise "actual, direct, and con- erty, and by exempting property acquired from tinual or recurrent exercise of managerial con- CERCLA liens. These provisions would improve Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

644 Federal Reserve Bulletin • August 1991 the ability of public sector lenders to obtain borrower that appears to present a risk of liability repayment of their loans and would limit the for hazardous substance removal. We also risk extent to which the funds of these lenders are imposing additional costs on the bank and thrift diverted to pay for hazardous substance cleanup insurance funds to pay for environmental costs. cleanup costs that would otherwise be met from In closing, it is in the interests of the financial the funds allocated by the Congress for that and environmental communities to find a bal- purpose. In light of these considerations, we anced solution to the lender liability issue. If this believe that the environmental goals of CERCLA issue is not resolved, we risk a reduction in the will be furthered rather than hampered by the availability of credit to any industry, area, or provisions of H.R. 1450 or S.651. • Statement by Alan Greenspan, Chairman, Board conducted in branches and agencies, which alone of Governors of the Federal Reserve System, had aggregate assets of $626 billion, or 18 percent before the Committee on Banking, Finance and of total banking assets in this country, as of the Urban Affairs, U.S. House of Representatives, end of 1990. June 11, 1991. The Board is concerned that the framework for supervising the U.S. operations of foreign banks I am pleased to have the opportunity to appear is not as strong as it could be. The discovery of before this committee today in support of the fraud and other criminal activity at a small num- Foreign Bank Supervision Enhancement Act, ber of foreign banks has convinced us of the need which is designed to strengthen the supervision to direct greater attention to these operations on and regulation of foreign banks operating in the a coordinated basis. For this reason and because United States. As you have requested, I will also we have a strong interest in ensuring the soundcomment on section 231 of the Financial Institu- ness and integrity of the U.S. banking system, tions Safety and Consumer Choice Act of 1991 the Board has proposed the legislation being (H.R. 15015), the banking reform proposal, which considered here today. deals with proposed restrictions on activities of To this end, the legislative proposal would foreign banks in the United States. establish uniform federal standards for entry and Each of these legislative proposals has far- expansion of foreign banks in the United States, reaching significance for the U.S. financial sys- including, importantly, a requirement of consoltem. The liquidity and depth of the U.S. banking idated home country supervision as a prerequienvironment have, to a great extent, been made site for entry into the United States and the possible by the participation of foreign banks. application of the comparable financial, manage- The active presence of foreign banks in this rial, and operational standards that govern U.S. country has helped to assure the continued im- banks. The proposal would also grant regulators portance of the United States in international the power to terminate the activities of a foreign financial markets and has contributed to the bank that is engaging in illegal, unsafe, or ungrowth of banking, including international bank- sound practices and provide regulators with the ing, in several U.S. cities. Of equal significance, information-gathering tools necessary to carry foreign banks have been a substantial source of out their supervisory responsibilities. The procredit for all types of American businesses in all posal would clarify the Board's examination auparts of this country. thority over foreign banks by providing that it It is clear that foreign banks occupy an impor- may coordinate examinations of all U.S. offices tant and growing place among banking institu- of a foreign bank. tions in the United States. At the end of 1990, At the same time, my colleagues and I believe there were 290 foreign banks with operations in that, with proper supervision and subject to the United States having aggregate assets of $800 appropriate regulatory standards, foreign banks billion. The great bulk of these operations are should be able to continue to participate in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 645 U.S. market through branch operations. Conse- safe and sound manner. The proposal is also quently, the Board has serious concerns about intended to ensure that the banking policies estabsection 231 of the banking reform legislation, lished by the Congress are implemented in a fair which requires that such branches be closed as a and uniform manner with respect to all entities prerequisite to conducting new financial activities. conducting a banking business in the United I shall first discuss the Foreign Bank Supervi- States. It is important to note at this point that the sion Enhancement Act and then turn to section legislative proposal will not foreclose every prob- 231 of the banking reform legislation, H.R. 1505. lem that could arise with a foreign bank. Fraud is extremely hard for any regulatory authority to detect, especially when bank employees actively FOREIGN BANK SUPERVISION conspire to prevent official scrutiny or when all ENHANCEMENT ACT relevant information relating to the fraudulent activity is maintained outside the United States. As I have already stated, foreign bank operations The legislative proposal is intended to minimize in this country are large and growing, accounting the potential for illegal activities by creating a bar now for approximately 21 percent of U.S. bank- to entry by questionable organizations and to ing assets. The criminal activity that was discov- provide as many regulatory and supervisory tools ered in several foreign banks over the past sev- as possible to investigate and enforce compliance eral years has convinced the Board that there with U.S. laws and regulations. needs to be greater, more comprehensive, and better-coordinated attention paid by state and federal regulators to the U.S. offices of these UNIFORM STANDARDS FOR FINANCIAL institutions. There is no evidence at this time that AND MANAGERIAL STRENGTH the problems are widespread in relation to the overall presence of foreign banks in the United The Board recommends that the law establish States; nevertheless, recent experience in other clear and definite standards that would apply to areas of the financial services industry demon- any foreign institution seeking entry into the strates that early warning signs of trouble should United States. Under the current system, a state not be ignored. may allow entry by a foreign bank based on its As a result of these recent supervisory prob- own criteria, which could differ substantially from lems, the Board conducted a review to determine the criteria applied by another state. There should whether the existing statutory framework gov- be a common set of minimum standards that all erning foreign bank operations in this country is applicants must meet to be participants in the adequate. From that review, we have developed U.S. banking market. These standards must be and recommended for enactment the Foreign designed to continue to permit strong interna- Bank Supervision Enhancement Act. tional banks to do business in the United States The legislation is not intended to impose but to deny entry to weakly capitalized, poorly sweeping new requirements or to alter radically managed, or inadequately supervised institutions. the framework governing foreign bank opera- The proposal would not in any way replace or tions in the United States. Rather, its purpose is substitute for state regulatory approval of foreign to build upon and complement the existing su- bank branches and agencies. A state must still pervisory structure to fill those regulatory and license a branch or agency of a foreign bank and supervisory gaps that experience has demon- must apply its own standards to the establishment strated exist. and ongoing operation of the office, including The Board has proposed this legislation not standards that may be more stringent or rigorous only to provide better tools to deal with potential than those proposed here. The proposal estabillegal activity but also because of our continuing lishes a minimum standard that all foreign banks strong interest in ensuring that all banking institu- operating in the United States must meet because tions in the United States observe the same regu- of the significance and impact of these institutions latory and supervisory standards and operate in a on our nation's banking system. For these rea- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

646 Federal Reserve Bulletin • August 1991 sons, the Board believes that foreign banks should The provision is not intended to grant authormeet the standards of financial responsibility com- ity to the banking agencies for "fishing expediparable to those applied to U.S. banks, including tions" or to allow the exercise of extraterritorial the standards that would be applied to a U.S. jurisdiction over the non-U.S. operations of the bank operating internationally. foreign bank or to provide access to the records of customers unrelated to the bank's compliance with U.S. banking laws. Rather, the provision CONSOLIDATED SUPERVISION seeks to confirm that a foreign bank that chooses to participate in the U.S. market, with all atten- My colleagues and I believe that it is critical that dant privileges and responsibilities, will also any foreign bank entrant be subject to compre- make available to banking regulators information hensive supervision on a consolidated basis by a that is directly relevant to determining and enhome country regulator. When an institution forcing the bank's compliance with U.S. banking operates internationally in separate jurisdictions requirements. with differing laws and regulations, consolidated review and supervision is the only means of determining its financial condition and the extent REQUIREMENT FOR PRIOR REVIEW and lawfulness of its operations. Comprehensive, consolidated regulation has in recent years be- As a means of implementing these standards, we come a necessary response to the globalization of recommend that the Congress adopt a requirefinancial markets. ment of prior federal review that applies these This standard of comprehensive and consoli- standards to the proposed entry by a foreign bank dated supervision was not a generally accepted through any form of banking office, whether a principle of international bank supervision at the state or federally licensed office or a commercial time the International Banking Act was adopted, lending company. The International Banking Act as it is today, and became so only after experi- gave the Board certain responsibilities for the ence demonstrated the problems associated with supervision of foreign banks in the United States, fragmented review of an international bank's but no federal agency has a voice in deciding operations. The Board recommends incorpo- whether individual institutions seeking to enter ration of this standard into the laws governing U.S. markets through state branches, agencies, or foreign banks operating in the United States. commercial lending companies meet the standards generally applicable to banking organizations in this country. As the Board is the agency ACCESS TO INFORMATION charged with responsibility for the overall supervision of foreign banks in this country, it is our The Board also recommends that the uniform view that the Board should have a role in deciding standards include a requirement that a foreign whether the foreign bank may establish or mainbank agree to supply information on its activities tain a U.S. banking presence. This practice apand operations that a regulatory agency finds to plies in other areas of federal bank regulation, be necessary to determine whether the bank is in and, given the size and importance of foreign bank compliance with U.S. banking requirements. Re- offices in the U.S. banking market, the practice cent experience has demonstrated the critical should be applied to these institutions as well. importance of agency access to this type of information. Without this type of agreement, it is difficult for the agency to detect and enforce SUPERVISION OF REPRESENTATIVE compliance with the banking laws. The agency is OFFICES in the position of having to use its enforcement authority to attempt to gain access to information Foreign banks also participate in the U.S. market that the bank may be trying deliberately to shield through representative offices. These offices are by holding it offshore. ones at which a foreign bank may promote the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 647 services offered by the foreign bank but may not offices of a bank should be regulated and examengage directly in a banking business with cus- ined in a consistent manner. tomers. Representative offices may not make While the International Banking Act gives the credit or other business decisions but must refer Board the residual responsibility for supervising such decisions to the home office. Because their all of a foreign bank's U.S. operations, it also activities are intended to be limited, there is a requires that the Board use the reports of examlesser degree of regulation of these offices. ination of other regulators to the extent possible. There have, however, been instances in which The Board believes that the statute should be foreign banks have used representative offices amended to remove this requirement and to to conduct banking activities without licenses. authorize the Board to call for coordinated or To prevent such instances in the future, we simultaneous examinations. Because such coorbelieve that it would be appropriate to require dinated examinations would require the close federal review of the establishment by foreign cooperation of several different regulators, the banks of representative offices in the United Board believes that it is preferable that there be States and to make these offices subject to clear congressional authorization for such coorexamination. dination, including authority to coordinate simultaneous examinations when appropriate. The proposal is not intended to interfere with state efforts to examine and supervise state-li- TERMINATION OF ACTIVITIES censed branches and agencies. In implementing a coordinated examination program, the Board Besides the adoption of standards for the estabwould anticipate that examinations of state lishment of a new foreign bank office that would branches and agencies be conducted in a manner require federal approval, the Board has recomsimilar to those of state member banks. The mended that federal authority be provided to Federal Reserve has a long record in coordinating terminate the activities of a state branch, examinations of state member banks with the agency, representative office, or commercial states. The Board applies a flexible approach lending company of a foreign bank. The designed to use resources efficiently while obtaingrounds for such termination would be violaing the necessary information from the examinations of law or the conduct of unsafe or unsound tion. The Board may conduct its own examination practices when the continuation of the activities of the branch, participate in a joint examination, would not be consistent with the public interest or alternate examinations with the supervisor evor the applicable statutory standards. ery other year. Examination of branches and agencies may require greater coordination with the states and the OCC because of the interstate COORDINATION OF EXAMINATIONS aspect of the foreign bank's operations and the number of different regulators that are involved, Our experience has demonstrated the need to but we hope that the end result will provide a strengthen and coordinate federal and state more comprehensive picture of a foreign bank's examinations of the various branches and agen- U.S. operations than is currently available. We cies of a foreign bank. Many foreign banks hope to enhance existing communications and operate extensive interstate networks of cooperation with federal and state bank regulators branches and agencies licensed under the au- in conjunction with the program of coordinated thority of the various states or the Office of the examinations. Comptroller of the Currency (OCC). As a result, the timing of the examinations of the COOPERATION WITH FOREIGN various office and the elements of the various SUPERVISORS examination processes may differ widely. Our experience has also demonstrated that compre- In terms of supervising banks that operate hensive supervision requires that the branch internationally, a crucial aspect is cooperation Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

648 Federal Reserve Bulletin • August 1991 and coordination with the home country regu- FOREIGN BANK ACTIVITIES lators of such banks. Consequently, the Board IN THE UNITED STATES UNDER THE recommends that the International Banking Act BANKING REFORM PROPOSAL be amended to clarify that the federal banking agencies are authorized to share supervisory Section 231 of H.R.1505, the Treasury's banking information with their foreign counterparts, reform legislation, would require a foreign bank subject to adequate assurances of confidential- that desires to engage in newly authorized finanity, when such sharing is appropriate in carry- cial activities, such as securities, establish a ing out the agency's supervisory responsibili- financial services holding company in the United ties. States through which such activities would have to be conducted by subsidiaries. The provision would also require any foreign bank that chooses OTHER PROPOSALS to engage in the new financial activities to conduct all of its U.S. banking business through a There are several other areas in which we have U.S. subsidiary bank and to close and "roll up" recommended either enhancing current require- its U.S. branches and agencies into that bank. ments in the law or extending to foreign banks Finally, under the provision, foreign banks in the United States the same legal require- would lose their grandfather rights for U.S. sements as apply to U.S. banking organizations. curities affiliates after three years and would be These areas include requiring reports by foreign required to obtain approval from appropriate banks with U.S. operations of loans secured by authorities to engage in underwriting and dealing 25 percent or more of the voting shares of any in securities activities in the United States in the insured depository institution; requiring that a same way that a U.S. banking organization foreign bank with a branch, agency, or commer- would. cial lending company in the United States ob- The supervisory standards that would be the tain prior approval before acquiring more than 5 basis for authorizing affiliates of U.S. banks to percent of the shares of a U.S. bank or bank engage in newly authorized financial activities holding company; clarifying the managerial and in interstate banking would apply also to standards applicable to bank acquisitions in the affiliates of foreign banks. Such a policy appears Bank Holding Company Act; and confirming appropriate and equitable. However, in implethe authority to impose civil money penalties menting that policy, we question the need for the for violation of the International Banking Act or requirement that foreign banks close their U.S. its implementing regulations. In addition, the branches and agencies and conduct their U.S. proposal calls for designating the relevant fed- banking business in a separately capitalized eral banking agency to enforce the consumer U.S. subsidiary bank of the financial services lending statutes for foreign bank branches and holding company to take advantage of the exagencies rather than the approach under some panded powers for new activities. existing laws that would leave residual enforce- It has been the policy of the United States, at ment authority for foreign bank offices with the least since the adoption of the International Federal Trade Commission or in one case the Banking Act of 1978, to apply the principle of Department of Housing and Urban Develop- national treatment to the regulation of foreign ment. banks in the United States. The Congress in that I would also note that, as part of the Trea- act recognized that foreign banks operating in sury's proposed legislation on banking reform, this country come from jurisdictions with differstate-chartered banks would be limited in their ing and varied banking structures. The Congress activities to those of a national bank, absent determined that national treatment required adagency approval. If that portion of the banking aptation of U.S. legal requirements to provide reform legislation were to be enacted, a similar foreign banks, not with identical treatment, but limitation should be applied to the activities of rather with equivalent, or parity of, treatment. state branches and agencies of foreign banks. Within the context of applying the principle of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 649 national treatment, an effort has been made to banking organization would be a better basis for limit the extraterritorial effect of regulation in the judging a foreign bank's fitness for new powers United States while assuring both that appropri- than would an assessment of only the capital of ate supervisory safeguards are in place and that the U.S. subsidiary bank, and would meet the no competitive advantages accrue to foreign in- standards of national treatment and equality of stitutions as a result of the form or structure of competitive opportunity for U.S. and foreign regulation in this country. banks in this country. In the International Banking Act the Congress There are also other reasons to question the balanced these concerns by treating foreign banks approach of section 231 in its current form. As the as bank holding companies for purposes of the Treasury proposal recognizes in advocating dononbanking restrictions of the Bank Holding mestic interstate branching, a requirement that a Company Act but without specifically requiring banking business be conducted through sepaforeign banks to establish separate holding com- rately incorporated subsidiaries rather than panies. That approach has worked well for the branches imposes additional costs by not permitpast thirteen years. In our view, the imposition of ting a banking organization to use its capital and the additional legal requirement that foreign banks managerial resources efficiently. In many of the transfer their banking business in the United important banking markets, U.S. banks have been States to separate subsidiaries, as a precondition permitted to conduct banking operations through to new activities, imposes additional costs on the branches on an equal basis with local banks. In U.S. operations of foreign banks but does not bilateral and multilateral discussions, U.S. auenhance the safety and soundness of those oper- thorities have correctly argued that a restriction ations. against branching discourages the involvement of We believe that the principle of national treat- U.S. banks in foreign markets. It would be inconment does not require that foreign banks operate sistent not to acknowledge that foreign banks their U.S. banking business through subsidiary could also be discouraged from involvement in banks in the United States to engage in new U.S. banking markets by requiring foreign banks financial activities. Moreover, if identity of treat- to operate only through subsidiaries to engage in ment is a prerequisite for national treatment, the new activities. question arises as to whether section 231 may be Foreign banks have made a substantial contriviewed as denying national treatment because it bution to the competitive environment of U.S. prohibits foreign banks from branching in the financial markets and the availability of credit to United States from their head offices when U.S. U.S. borrowers. To the extent the proposal may banks would have that authority. cause a retreat from the commitment of foreign Moreover, the capital and other supervisory banks to the U.S. market, it may reduce the standards that are the basis for authorizing affili- availability of credit to American businesses and ates of foreign banks to engage in newly autho- local governments. Currently, legal lending limits rized financial activities can be applied without for U.S. branches and agencies of foreign banks requiring the termination of the branches and are based on the consolidated capital of their agencies of foreign banks in the United States and parent banks. By contrast, requiring a "roll up" without requiring that foreign banks establish an of branches and agencies of a foreign bank into a intervening U.S. holding company between the U.S. subsidiary bank, whose capital is measured parent foreign bank and U.S. activities. The Fed- separately from the parent, might limit the extent eral Reserve has for several years taken into to which foreign banks contribute to the depth and account the capital strength of the entire foreign efficiency of markets in the United States and banking organization for purposes of determining continue to lend to individual borrowers. whether the organization may commence new Moreover, by compelling a switch from U.S. activities under the Bank Holding Company branches, whose deposits now are largely unin- Act. A similar assessment could be made for sured, to U.S. subsidiaries, whose deposits would purposes of the banking reform legislation. In- be covered by U.S. deposit insurance, we would deed, an assessment of the strength of the entire be increasing the extent to which depositors Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

650 Federal Reserve Bulletin • August 1991 would look to the U.S. safety net instead of to the the policy established in the International Bankforeign parent in the event of problems. ing Act of national treatment for foreign banks We also have reservations about the purpose and to provide federal regulators with the same that would be served by requiring a foreign bank authority over the U.S. operations of foreign to establish a holding company in the United banks as they have with respect to domestic States to conduct new financial activities. In par- banks. The proposed legislation does not estabticular, requiring a foreign bank to operate lish a new scheme of bank regulation; it applies through a holding company is not necessary to to foreign banks the same structure of regulaassure competitive equity for U.S. financial ser- tion as currently applies to domestic banks. The vices holding companies or independent U.S. dual banking system is served in the same way nonbank firms. A foreign bank's U.S. operating as with domestic banks, and the proposed legcompany, whether a securities firm or the bank islation recognizes that states have an imporitself, would have to meet at least the same tant roll in determining whether to permit forstandards required for any other U.S. firm en- eign banks to enter their states under a scheme gaged in that business. The question then is of state regulation. The proposed legislation whether the requirement of a financial services also recognizes, however, that the presence of holding company removes some other potential an international bank in the U.S. market has competitive advantages for foreign banks. We implications that go beyond the boundaries of think not. The foreign bank itself would have to be any one state and that the national policies well capitalized. Moreover, any cost advantage a established by the Congress with respect to foreign bank may have in its own home market banking must also be served. would be available regardless of the structure of This legislative proposal will enhance the its U.S. operations. ability of U.S. regulatory authorities to assess Requiring the termination of U.S. branches and the ability of a foreign banking organization as a agencies of foreign banks and a holding company whole to support its U.S. operations. The comstructure could create inducements for foreign ments I have made on section 231 of the combanks to conduct banking operations in less costly mittee print of H.R.1505 also emphasize that environments outside the United States. Such such an assessment is a more reliable basis requirements could also encourage foreign au- for determining whether a foreign bank should thorities to enact similar restrictions on branching be given new financial powers in the United activities by foreign banks, including U.S. finan- States. The "roll up" and the holding company cial firms, possibly setting off a mutually destruc- requirement run counter to that interest. It tive spiral of escalating restrictions. would appear that the underlying intent of Finally, we support the policy reflected in section 231 is to provide a firm basis for U.S. section 231 that would allow a termination of the regulation of foreign banks. We believe that grandfathered securities activities of foreign there are other ways to achieve an appropriate banks if foreign as well as domestic institutions level of supervision of foreign banks. The are given the power to engage in securities activ- provisions of the Foreign Bank Supervision ities under the new structure for financial reform. Enhancement Act would serve that goal without the negative side effects of the "roll up" and the holding company requirements of sec- CONCLUSION tion 231. I appreciate having the opportunity to testify In sum, the Foreign Bank Supervision En- on these important issues and would be pleased hancement Act is designed to be consistent with to answer any questions. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 651 Statement by Edward W. Kelley, Jr., Member, cleaning up hazardous substances found on a Board of Governors of the Federal Reserve Sys- site, regardless of whether they are responsible tem, before the Committee on Banking, Housing, for the release of the hazardous substance. By its and Urban Affairs, U.S. Senate, June 12, 1991. terms, CERCLA generally excludes secured lenders from this liability; however, recent court I would like to thank you for the opportunity to decisions have largely eroded the protection furdiscuss the issues of lender liability under the nished by this exclusion. Courts have imposed Comprehensive Environmental Response,Com- lender liability under CERCLA when a lender pensation, and Liability Act of 1980 (CERCLA), secured by property forecloses on property or as well as the solutions to this problem proposed has "participated in the management" of its by S.651. The issues presented in this legislation borrower by virtue of the rights reserved by the are complex, and I commend the committee for lender under its lending and security agreements undertaking to explore them fully at this time. with the borrower. With the average projected As an initial matter, we strongly support the cost of remedying contamination at sites on the purposes of CERCLA. We all wish to live in a National Priority List climbing to more than $25 clean and healthy environment; however, the million dollars, liability in CERCLA cases may costs of achieving this goal are substantial. The far exceed the amount of the lender's original Environmental Protection Agency has estimated loan. that the cleanup of the 1,200 priority sites alone Because of the erosion of the secured lender may exceed $30 billion. The General Accounting exemption, lenders to borrowers in businesses Office has estimated that as many as 425,000 sites that are used or produce hazardous substances may need investigation and possibly cleanup. are faced with a dilemma. Lenders can actively In light of these potential costs, we have attempt to police hazardous substance disposal become concerned over the effect of recent court by their borrowers, risking being found to have interpretations of CERCLA that have held lend- "participated in the management" of the borers liable for the cost of the cleanup of hazardous rower and therefore liable for potential cleanup substances found on a borrower's property. De- costs, or they can ignore the borrower's activispite an exemption in CERCLA designed to ties and risk nonpayment of the loan. Further, shield lenders from CERCLA liability, these these court decisions may discourage even nordecisions, in effect, place lenders in the role of mal loan collection practices out of concern that policing the hazardous substance disposal activ- they will be found to constitute management. ities of their borrowers. Lenders are often ill Lenders already have adequate incentives to equipped to perform this function, and imposi- encourage their borrowers to engage in environtion of unlimited liability can be expected to mentally safe practices so that these borrowers reduce their willingness to provide credit to will avoid CERCLA liability. However, lenders prospective borrowers in any business or area do not generally have the technical expertise to where there is a risk of CERCLA liability. A police the environmental aspects of a borrower's reduction in the availability of credit threatens operations. Covenants in borrowing agreements the viability of these businesses and their ability that give lenders a voice in their borrower's to contribute to the cleanup of the environment. activities are designed to ensure that the bor- Consequently, we believe that the imposition of rower acts prudently in financial matters and cleanup liability on lenders is counterproductive places a high priority on the repayment of the to long-term environmental goals and is contrib- debt, not to permit the lender to substitute its uting to an unnecessary and unwarranted con- judgment for that of the borrower's in technical striction of credit availability to a wide range of aspects of the borrower's business. otherwise creditworthy borrowers. We support Imposing affirmative liability for environmenthe objectives of S.651 to limit lender liability for tal cleanup costs on lenders because of the cleanup costs under CERCLA. exercise of such covenants is likely to do little to Under CERCLA, the owner or operator of a prevent the pollution of the environment but is property may be held liable for the entire cost of likely to interfere with the availability of credit to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

652 Federal Reserve Bulletin • August 1991 even prudent businesses that use hazardous sub- collateral to avoid CERCLA liability is likely to stances, such as farmers, dry cleaners, service cause lenders to become increasingly cautious stations, and chemical and fertilizer producers. about loans to many businesses or areas, even if Credit is a necessity for the operation of com- no actual liability has been incurred under mercial enterprises. Lenders, already reluctant CERCLA. to extend credit to borrowers that are subject to In carrying out its examination and supervia high risk of CERCLA liability, will only be sory activities, the Federal Reserve expects deterred further by the prospect of affirmative banking organizations to have policies and prolender liability under CERCLA. Increased lender cedures in place to monitor and control the risks reluctance to provide funds to industries or areas to which banking organizations are exposed. that present a risk of CERCLA liability is likely However, banks have experienced difficulty in to have a significant adverse effect on these determining the appropriate protective practices industries or areas. to minimize the potential for CERCLA liability. Lack of credit in these cases may also frustrate Lending institutions are at risk for hazardous environmental interests. Companies that are un- waste liability whether they have ignored hazardable to continue operating because they cannot ous waste issues altogether or have actively obtain credit will not be able to make any con- attempted to monitor the safety of their borrowtribution to the environmental cleanup costs. ers' operations. The Board currently is develop- Consequently, the current thrust of court deci- ing guidelines for bank examiners to follow in sions imposing lender liability under CERCLA determining whether a lending institution has may actually frustrate the environmental goals of adopted appropriate procedures and safeguards CERCLA and increase the cleanup costs that to recognize potential hazardous substance probmust be borne by the government. lems. Unfortunately, given the current state of the law, there is no clear guidance that we can While the Board does not have comprehensive provide as to how an institution can extend credit data on lender losses because of CERCLA liabiland still avoid liability. ity to date, clearly significant losses have already occurred. More important to the future is that Besides private sector liability, CERCLA data from the Federal Reserve Banks suggest raises significant issues concerning the funding of that CERCLA liability is, in fact, affecting the government operations. Many lending instituavailability of credit. Banks are developing envi- tions that are potentially subject to CERCLA ronmental guidelines that often indicate that the liability are federally insured through the bank lender should decline to make loans collateral- and thrift insurance funds. Unlimited liability ized by real property when past uses may have under CERCLA poses a potential threat to the resulted in contamination of the property or to capital and solvency of these institutions and in make loans to businesses that may use or pro- some cases could result in the costs of hazardous duce hazardous substances in their operations. substance removal being borne by the bank and In some cases it appears that banks are declining thrift insurance funds. We understand that the to make loans regardless of the safety of a Federal Deposit Insurance Corporation (FDIC) borrower's handling of hazardous substances. has already incurred losses as a result of In addition, banks are examining property CERCLA. carefully before they foreclose on it and are Further, many agencies and instrumentalities sometimes walking away from their collateral to of the federal government, such as Federal Reavoid environmental liability. This problem ap- serve Banks, Federal Home Loan Banks, the pears to be widespread and is not confined to Farm Credit System, and the Small Business industrial areas of the country or to particular Administration, are also lenders. Lender liability types of businesses. Virtually every Federal Re- presents a threat to the ability of these organizaserve Bank reported instances in which lenders tions to carry out the missions assigned to them had walked away from collateral, even when the by the Congress. The Federal Reserve Banks collateral was the only source of repayment for fulfill important functions in providing adjustthe loan. The experience of walking away from ment credit and acting as a lender of last resort Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 653 for depository institutions. In acting as lender of the actual benefit received by the lender from the last resort, a Federal Reserve Bank may advance cleanup of the property. S.651 also provides that funds to a depository institution collateralized by mortgage lenders or insured depository instituthe institution's loans, which may in turn be tions will not be liable for cleanup costs based on secured by real property. Should the institution their unexercised capacity to influence the operfail, the FDIC, as receiver, would likely acquire ations of a borrower. the loans from the Reserve Bank and would be However, under S.651 a lender would lose all left holding the loans. In these cases, the FDIC benefit of the exemption if it caused or contribwould be exposed to lender liability to the same uted to the release of hazardous wastes or failed to extent as the original lender. If the FDIC chose take reasonable steps to prevent continued renot to acquire the loans, however, the Reserve lease. It is not clear under what circumstances a Bank would be subject to this exposure. lender would be considered to have caused or It is not appropriate to shift the risks and contributed to a release or what actions a lender expenses of environmental clean-up costs from must take to prevent a release. This stringent the funds allocated by the Congress for this standard juxtaposed against the severe implicapurpose to the bank and thrift insurance funds or tions of being found responsible could be a serious to governmental instrumentalities such as the inhibition to a lender's willingness to lend. Federal Reserve Banks. Federal agencies and S.651 also specifically addresses the concerns instrumentalities have been charged by the Con- of federal banking and lending agencies by progress with particular responsibilities. Their funds viding protection for these entities and the next are intended to be used to fulfill these responsi- purchaser of the property by excluding them bilities, not to cover the costs of hazardous from liability for hazardous substance removal substance removal. and exempting property held or sold by these We believe that the appropriate avenue for agencies from certain CERCLA liens. The fedremedying these problems is legislation. While we eral banking and lending agencies would also be commend the Environmental Protection Agency exempted from CERCLA provisions requiring for its efforts to provide regulations to clarify the federal government entities that are owners or secured lender exemption, its efforts are necessar- operators of facilities to provide warranties conily limited by the current statutory provisions. We cerning the cleanup of any property before it can believe that greater certainty and protection for be sold. both public and private sector lenders will be These provisions would improve the ability of provided by statutory amendments. the federal banking and lending agencies to ob- Any legislation to limit the application of tain repayment of their loans or to realize the CERCLA liability should apply to all lenders and value of real property and would limit the extent should strive to delineate clearly those activities to which their funds are diverted to pay for that will lead to CERCLA liability. S.651 pres- hazardous substance cleanup costs. The extenents a viable approach to reducing potential sion of the broader agency immunity to subselender liability problems under CERCLA for quent purchasers should be particularly helpful both the private and public sectors. While this in this regard by encouraging prospective purbill has several strong points, it does not cover all chasers to invest in properties that carry a risk of lenders and leaves unanswered questions as to CERCLA liability. what duties, if any, those lenders that are cov- S.651 also requires the federal bank regulatory ered must perform to preserve the limitation on agencies to promulgate regulations to require the liability. institutions they supervise to adopt procedures S.651 amends the Federal Deposit Insurance for evaluating environmental risks associated Act to limit the liability of mortgage lenders and with lending secured by property. We believe federally insured depository institutions for the that the incentives arising from the risk that the cost of hazardous substance removal. It appears borrower will be unable to repay its loan because that the liability of these lenders would be limited of its own CERCLA liability are adequate to to the amount of the loan made by the lender or encourage lenders to evaluate environmental Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

654 Federal Reserve Bulletin • August 1991 risks related to their borrower's property. Banks that appears to present a risk of liability for are already beginning to undertake these evalua- hazardous substance removal. We also risk imtions. Accordingly, we do not believe that it is posing additional costs on the bank and thrift necessary to add additional regulatory require- insurance funds to pay for environmental cleanup ments in this area. costs that would otherwise be met from the funds In closing, it is in the interests of the financial allocated by the Congress for that purpose. In and environmental communities to find a balanced light of these considerations, we believe that the solution to the lender liability issue. If this issue is environmental goals of CERCLA will be furnot resolved, we risk a reduction in the availabil- thered rather than hampered by the provisions of ity of credit to any industry, area, or borrower S.651. • Statement by John P. LaWare, Member, Board through open market operations and allows the of Governors of the Federal Reserve System, Treasury to issue federal debt at the lowest before the Subcommittee on Securities of the possible cost to the taxpayers. Investors accept a Committee on Banking, Housing, and Urban lower rate of return on government securities, in Affairs, U.S. Senate, June 12, 1991. part, because they know that this market is deep and broad and liquid—large transactions can be Thank you for this opportunity to give our views made quickly with relatively little effect on prices regarding possible amendments to the Govern- and can be, if necessary, reversed just as quickly ment Securities Act of 1986. At the outset, let me with relatively low transactions costs. While we note that the Federal Reserve Board continues to view market liquidity as essential, this is not to support the recommendations of the joint Trea- say that investor protection is not also a legitisury-Securities and Exchange Commission mate concern. It is an important concern in its (SEC)-Federal Reserve Board study—most im- own right, and, if not adequately addressed, a portant, that the Congress extend the Treasury's loss of investor confidence in the fairness and rulemaking authority over the market beyond the functioning of the government securities market current sunset date. The experience of the past could itself impair liquidity. several years can, in our view, be read as ratify- But any securities regulation involves costs— ing the importance and usefulness of the Govern- directly to the issuer, customer, or dealer, as well ment Securities Act and of the rules that the as indirectly by potentially diminishing the gen- Treasury has promulgated under the authority eral liquidity of the market. Consequently, in that the act granted it. In its capacity as rule- weighing the advisability of new legislation to maker, the Treasury has effectively addressed add regulation, the Congress will, of course, the concerns about the maintenance of a fair, want to assure itself that the expected benefits of honest, and liquid market that motivated the any new regulation exceed the associated exoriginal legislation. Thus, in light of both its pected costs. Several years ago, when drafting experience and its special expertise in this mar- the Government Securities Act, the Congress ket, the Department of the Treasury should re- explicitly considered the case for broader regutain its current authority to write the rules in the lation of sales practices and some other areas but market for government securities. chose not to make it part of the act. In the Before getting into the specifics of other sug- Board's view, a convincing case for calling this gested amendments, I would like to lay out the decision into question has not yet been made. Board's frame of reference in approaching this In the area of sales practice rules, the General issue. Specifically, we begin from the premise Accounting Office's (GAO's) report in Septemthat it is absolutely essential to preserve the ber 1990 recommended that the Congress amend extraordinary liquidity and efficiency of the gov- the Securities Exchange Act to authorize a federnment securities market. This liquidity both eral agency to adopt rules of fair practice applifacilitates the implementation of monetary policy cable to all government securities brokers and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 655 dealers, addressing, at a minimum, dealer mark- several extremely volatile instruments, such as ups and investor suitability requirements. The stripped mortgage-backed securities, noting that Treasury's proposed legislation would do just such instruments "cannot be considered as suitthat and would designate the Treasury itself as able investments for the vast majority of deposthe federal agency in charge, with quite broad itory institutions." The adoption of the policy powers in this area. statement, together with an effort to educate In taking a closer look at these proposals, our banks to the risks involved, has virtually elimiexperience in applying markup rules elsewhere nated the problem for the banks we regulate. suggests that there are significant difficulties and There are other investors for whom this would ambiguities in administering such rules fairly. not be a practical or a complete solution, how- Even if judgments about the reasonableness of ever, and the Board recognizes that the Congress markups in this fast-paced market could be made may conclude that additional sales practice rules on an ex-post basis, it could be difficult to formu- are desirable to help curb existing or potential late meaningful criteria for use in making ex-ante abuses. In that case, perhaps the least costly judgments and providing guidance to dealers. measure would be a simple removal of the pro- The government securities market spans a wide hibition on the National Association of Securities range of securities, from the extremely liquid, Dealers, Inc. (NASD) applying its sales practice so-called on-the-run Treasury securities, for rules to government securities transactions. Alwhich bid-asked spreads are razor-thin, to the lowing the NASD to apply its existing rules to more exotic and sometimes tailor-made hybrids government securities sales by its members and derivatives, for which a fair markup could be would parallel what is already the case for New sizable. York Stock Exchange (NYSE) member firms, In the same vein, the Board is concerned that and it would extend coverage to all nonbank suitability rules could impose a burden on the brokers and dealers. In this process, which government securities market by adding to costs, would in essence take place with oversight by the delaying the execution of transactions and poten- SEC, we would favor substantive consultation tially limiting the range of legitimate investments and cooperation with the Department of the available to a dealer's customers. Moreover, Treasury as the primary regulator of this market. many of the losses in the government securities In our view, going further than this—to cover market cited by the GAO and others in support of bank dealers—is unnecessary, given the lack of sales practice rules have involved large inves- allegations of sales practice abuses involving tors, whom one would expect to have the sophis- these dealers. Bank examiners routinely go tication to judge the appropriateness of various through customer complaint files, and this is an investments themselves. It is doubtful that any area in which they simply have not been seeing suitability rules should apply to those best de- complaints. We believe that the bank superviscribed as institutional investors. sory agencies, through the use of frequent and There are, nevertheless, concerns that smaller detailed examinations and other tools at their and perhaps less sophisticated investors may, at disposal, have the ability to identify any abuses times, have been subjected to high-pressure sales quickly, should they develop. tactics and sold inappropriate investments. As The issue of whether legislation is needed to the regulator of state-chartered member banks, expand access to information about securities some of whom have been the targets of such trading through interdealer brokers appears at practices, the Board is aware of this possibility, present to be very nearly moot. An independent and in 1988 the Board, along with the other bank corporation sponsored by the Public Securities regulatory agencies, adopted a policy statement Association and owned by the brokers and dealregarding the selection of securities dealers and ers is moving toward implementation of its plan unsuitable investment practices. The policy to disseminate price and volume information on a statement lists standards that an institution fee basis in just a few days. We recognize that should apply when selecting a dealer and de- this initiative may have been motivated strongly scribes the interest rate risk characteristics of by the possibility of legislative action. But we Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

656 Federal Reserve Bulletin • August 1991 believe that so long as it is going forward, actual the security and for its financing. In the wake of legislation and associated regulatory oversight that incident, questions have arisen about are unnecessary and could actually constrain whether current regulations provide adequate rapidly changing market practices. Should this protection against the potential for manipulative latest private sector initiative falter, however, or practices in this market. As is the case for the should the information prove inadequate, our other concerns being addressed here today, eqview of the desirability of a legislative response uitable and nondistorting regulations are not easy likely would change. to design, and we would counsel caution in With respect to the GAO recommendation that expanding regulation lest the cost to the taxpayer Securities Investor Protection Corporation be excessive. Certainly, we do not want to (SIPC) insurance be extended to customer ac- interfere with strong bidding for securities that counts at registered government securities bro- lowers the cost to the taxpayer of servicing the kers and dealers, there could be some marginal public debt. But if that strong bidding results in benefits in terms of customer protection, but the perception that prices of Treasury securities other regulatory changes might be necessary in are arbitrary and subject to manipulation, marconnection with the adoption of this proposal. ketmakers and investors could turn away from For example, the SIPC has pointed out that the these instruments, impairing liquidity and ultiproposal raises major questions about regulatory mately lowering demand in the market with adoversight because all current members of the verse effect on the cost to the government. Both SIPC are subject to the full rulemaking authority the facts and the outlook in this area are worth of the SEC. A range of related questions war- studying further, and it may be that additional rants further study before a definitive conclusion rules or reporting requirements will be found to can emerge about the desirability of expanding be in order. At this point, however, no new SIPC coverage. legislation appears to be needed, and a range of On a minor note, we question the Treasury's possible responses could be implemented under recommendation that the act be amended to the Treasury's existing authority. provide for information to be furnished to the In sum, by instituting an effective and compre- Treasury directly by the Federal Reserve Banks, hensive regulatory structure, the Government rather than through the Board of Governors as it Securities Act of 1986 appears to have largely is now. Any information that the Treasury might accomplished its goals. It is the Board's position need from the Federal Reserve to carry out its that the need for additional legislation, beyond responsibilities under the Government Securities that already proposed in the joint Treasury- Act likely would be obtained through our super- SEC-Federal Reserve Board study, has not been visory authority, and the Board has detailed, decisively demonstrated. Nevertheless, we well-established procedures concerning the re- would not stand in opposition to a modest broadlease of such information. The proposed rule ening of the scope of regulation over this market change would be inconsistent with those proce- through the removal of the prohibition on the dures. Accordingly, in the absence of a clear NASD's applying its existing sales practice rules need for such a change, we would oppose it. to the government securities activities of its Finally, committee staff has requested that we members. However, we would view substantial also address a recent episode in the Treasury additional regulation as not only unnecessary but coupon market, in which strong demands by a detrimental. The creation of a whole new panofew participants apparently "squeezed" others ply of rules and regulations likely would prove an in the market who had committed to deliver last inefficient and potentially very costly way of month's two-year Treasury note. As a result, dealing with the relatively few abuses that have prices were distorted for a time in the market for occurred in this area. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 657 Statement by Alan Greenspan, Chairman, Board Our competitiveness as a nation, therefore, of Governors of the Federal Reserve System, goes beyond movements in the shares of our before the Committee on Ways and Means, U.S. exports in world markets and the international House of Representatives, June 18, 1991. price competitiveness of our firms and industries. The ultimate test of the country's competitive- I am pleased to appear before this committee to ness is what is happening to the standard of living discuss U.S. international competitiveness. This of our citizens over time. topic has received much attention over the past Over the past four decades, U.S. real—or two decades as the U.S. economy has become inflation-adjusted—per capita national income increasingly more open. has more than doubled. The United States con- The concept of competitiveness can mean dif- tinues to enjoy the highest standard of living ferent things to different people, depending on among major industrial countries. In 1990, U.S. their particular perspective; so let me begin by real per capita income was about 30 percent more defining terms. At the level of the individual firm, than that in both Japan and Germany, our major competitiveness is, of course, gauged by bottom- competitors among industrial countries. We enline performance in the market. Competitive joy a similar advantage in total manufacturing firms are those firms whose costs of production productivity. lie sufficiently below the market price of the It is also clear, however, that the gap between output they sell so that they earn a rate of return the United States and other major industrial on equity at or above the market cost of capital. countries has narrowed substantially over the Competitive firms survive, increase their market postwar period as per capita income and producshare, and prosper; uncompetitive firms do not. tivity have grown substantially faster abroad. In A similar concept of competitiveness is often some areas, individual firms and even entire applied at the national level as well. The coun- industries in other countries may well have try's international performance is frequently caught up to and passed their U.S. counterparts. monitored by such measures as the shares of its Does this narrowing of the productivity gap mean exports in world markets, movements in its trade that we are a nation in decline? Not in and of balance, and movements in its aggregate price itself. level and production costs relative to those of To a considerable extent, the narrowing of the other countries. gap has been inevitable, reflecting economic At the national level, however, such conven- forces that are shrinking the globe, providing a tional measures of competitiveness lose much of strong stimulus to international trade, and maktheir meaning or at best are difficult to interpret. ing countries better informed about each others' In today's open world trading system, exchange products and production techniques. It is clearly rates tend to adjust over time to ensure that the easier to grow fast by catching up, using techcountry's international accounts return to bal- niques and processes that have already been ance. For example, if overall production costs developed, than by breaking new ground through rose in the United States, everything else equal, technological innovation. the dollar would depreciate against other curren- One important factor that has contributed to cies, restoring the price and profit competitive- this process of economic convergence as well as ness of U.S. firms, thereby enabling them to to the rapid expansion of world trade in the maintain their sales abroad. post-World-War-II period is what I have broadly However, a gain in price competitiveness as- referred to elsewhere as the "downsizing of sociated with a depreciation of the dollar, while economic output." Goods now derive a smaller good for U.S. firms that compete internationally, proportion of their value from the volume of could actually worsen overall economic well- physical matter embodied in them. Advances in being in the United States. A lower dollar means design and engineering, the use of lighter but that we must sell more of our output to buy a stronger materials, and the availability of smaller given amount of foreign-produced goods and but more reliable electronic components all have services. contributed to the downsizing of output. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

658 Federal Reserve Bulletin • August 1991 increasing importance of conceptual content in implications for consumers and their standard of output reflects, in part, the explosive growth of living were definitely so. In addition, the rapid information gathering and processing, which has expansion of U.S. exports over the past several greatly extended our analytical capabilities of years owes much to a period of capacity ensubstituting ideas for physical volume. hancements and productivity improvements by The downsizing of output, combined with sig- U.S. manufacturing firms earlier in the 1980s nificant advances in intercontinental transporta- when the dollar was strong and foreign competition and communication, has facilitated the rapid tion was intense. growth in international trade that we have seen in In a dynamic competitive world economy, recent decades. Moreover, information about with new products, technologies, and production new products and new technologies spreads fur- processes continually coming on stream, some ther and much more rapidly today than it did just firms and industries will always be on the decline a few years ago. As information-processing ca- as others are on the rise. Protectionist pressures pabilities increase in all countries, technological often arise when foreign competition intensifies and productivity gaps likely will continue to for a domestic industry that is in decline. The narrow further. ailing industry has a strong incentive to seek While other countries have benefited greatly protection from foreign competition; the losses from technology that has been developed first in of those put out of business and out of jobs are the United States, U.S. residents, too, have real. However, the appropriate policy response benefited significantly from the rapid growth of to an industry that is losing ground to foreign productivity abroad. As goods and services pro- competition is not to erect barriers to imports but duced abroad improve in quality or decline in rather to facilitate the redirection of workers who price, opportunities for international trade are do lose their jobs to more productive employenhanced and U.S. consumers who import for- ment opportunities elsewhere. If the protectioneign goods and services benefit directly. ist route is followed, newer, more efficient indus- The rapid growth of international trade over tries will have less scope to expand, and overall the past four decades has enhanced our standard output and economic welfare will suffer. of living more generally in several respects. One It is noteworthy that despite the alleged weakway is the well-known gains from specialization ening of our international competitive position and exchange, commonly referred to as the law during the 1980s, it can scarcely be argued that of comparative advantage. Just as individuals jobs have been lost, on balance. In fact, the within a country gain by devoting their energies unemployment rate by the latter part of the to what they do relatively well and exchanging 1980s, at below 5V2 percent, was the lowest level their output for the output of others, so do entire since the early 1970s. Moreover, the view that countries gain through specialization and ex- employment growth has been concentrated in change. By specializing in industries in which less productive areas more recently is not supthey are relatively efficient producers and trading ported by the data. Indeed, real wages and for products in which they are relatively ineffi- salaries per worker grew almost as fast during the cient, the citizens of all countries increase the 1980s as they did during the 1970s. total amount of goods and services available for It is, of course, prudent to be vigilant against their own consumption. unfair trade practices or excessive concentration Another source of gains from trade is the of market power on the part of foreign firms. stimulus to the efficiency of domestic production Nevertheless, the current level of protection in that is provided by international competition. the United States seems well in excess of the For example, increases in the quality of U.S. response that would be warranted by the actual automotive products since the early 1970s were existence of unfair trade practices abroad. By stimulated, in part, by the competition of Japa- some plausible estimates, the unilateral removal nese and European automakers. Although the of quantitative restrictions now placed on U.S. implications for workers in the domestic automo- imports of textiles, apparel, and various agriculbile industry were not always positive, those tural products would result in net gains to U.S. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 659 consumers amounting to the tens of billions of that it reinforces but does not supplant private dollars. Moreover, the complete removal of ex- market decisions. Much the same could be said isting foreign restrictions on U.S. exports prob- for additional government expenditures on eduably would reduce our trade deficit by only cation and training. modest amounts. More could be done to remove outmoded or While the traditional impetus for protection unnecessary government restrictions on U.S. has been the loss of domestic market share and private industry. In areas where high value added jobs to foreign competition, a new school of and spillovers are present, the gains in terms of thought argues that a case can be made for our standard of living could be significant. To government intervention in the form of promo- take an example, legislation is now pending to tion of technological change and innovation in put U.S. banks on a more equal footing with particular industries. Certain industries promise foreign banks by allowing them to provide a more the possibility of high profits or above-average complete range of financial services to their wages to employees because of increasing re- customers. In the absence of such banking returns to scale in production, spillover benefits to form, we could see a decline in the prominence of related industries, and barriers to market entry the United States as an international financial associated with high initial research and devel- center, and a potential loss of highly skilled jobs opment costs. As the argument goes, other coun- in financial services and allied industries. tries are beating us to the punch in such high Because the arguments for free trade are so value-added areas because their governments compelling, one sure way to enhance the proshave heavily subsidized initial expenditures for pects for our national standard of living is to research and development. continue to work to remove existing barriers to This argument has some appeal, but I would trade globally. Indeed, the primary thrust of U.S. caution against adopting a policy of targeting trade policy has been, and must continue to be, particular industries for special support from the to strive for multilateral reduction of trade regovernment for several reasons. First, if the strictions under the auspices of the General potential returns to specific industries are really Agreement on Tariffs and Trade (GATT). I atas high as promised, in many cases private tach great importance to bringing the current investment could be expected to respond. Sec- Uruguay round negotiations to a successful conond, it is not at all clear that the government is in clusion. Much progress has been made already in any better position than the private market to the talks, and prospects may have improved for identify those particular firms or industries that ironing out remaining nettlesome areas, particuare most deserving of support for research and larly in agriculture. Any significant step that development. Third, even if the spillovers were could be taken toward tearing down the exsignificant and obvious enough in a given case to tremely inefficient and costly worldwide system warrant government subsidies, making an excep- of government subsidies to agriculture would be tion in one case would risk the spread of govern- a breakthrough that would have many benefits. ment intervention to less clear-cut cases. The recent extension of the fast-track author- I have suggested that the narrowing of the gap ity was an important step both for the GATT between U.S. productivity and that of our major talks and for the establishment of a North Amertrading partners, to a considerable extent, has ican Free Trade Agreement. With respect to our been both inevitable and beneficial. Neverthe- impending negotiations with Mexico, predictless, more could be done to promote productivity ably, some U.S. industries may be hurt by ingrowth in the United States. creased competition from that country. But all of Some observers have suggested that a case can the comprehensive studies that I have seen on be made for government support for basic re- the subject indicate that the increase in trade search and development, that is, support not with Mexico that will follow a removal of existing directed at specific products or industries. How- trade barriers, on the whole, will result in a net ever, it is important that government involve- gain in both jobs and incomes for U.S. residents ment in this area be implemented in such a way as well as for the residents of Mexico. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

660 Federal Reserve Bulletin • August 1991 Perhaps the most important means at the gov- budget deficit turned around, interest rates and ernment's disposal to improve U.S. international the dollar fell, the U.S. trade deficit began to competitiveness and our standard of living in the narrow, and the world market shares of U.S. long run is to pursue sound macroeconomic exports recovered strongly. policies. It goes without saying that a stable Despite the swing in the U.S. external posifinancial system and steady progress toward tion during the 1980s, U.S. investment continprice stability will tend to minimize risk and ued to show reasonably strong growth, and enhance the attractiveness of investing in the productivity in manufacturing advanced at an United States—both by U.S. investors and by above-average annual rate of 3V2 percent. Howinvestors from abroad. Policies that contribute to ever, given the low and declining U.S. saving low inflation among our major trading partners at rate, the growth in investment was necessarily the same time will lead to more stable exchange at the expense of future consumption by U.S. rates and contribute to further sustained growth residents. The shortfall of U.S. domestic saving of international trade and, accordingly, domestic was made up by a substantial net inflow of real incomes. capital from abroad. All told, the increase in our On the fiscal side, the connection between net debt to foreigners over the past ten years movements in our budget deficits and our exter- amounted to about $750 billion. Servicing that nal performance, within the equation between increased net debt over the years ahead will national saving and investment, was confirmed mean that the rate of consumption in the United by events during the 1980s. The widening of the States relative to our output will be lower than federal budget deficit, along with a downtrend in it would otherwise have been. the U.S. private saving rate, contributed to an There is no question that the decline in the increase in both real interest rates and the dol- U.S. national saving rate has been costly and that lar's exchange rate during the first half of the the recovery of that saving rate should be a 1980s. The stronger dollar and associated decline national priority. At a minimum, we should enin the price competitiveness of U.S. firms, in sure that progress toward eliminating the federal turn, contributed to a sharp widening of the trade budget deficit over the next five years, as envideficit and declines in the world market shares of sioned in last year's budget agreement, is U.S. exports. In the second half of the 1980s, the achieved. • Statement by David W. Mullins, Jr., confirma- tary policy and financial regulation. The last year tion hearing on nomination to become Vice has indeed been a challenging one on both fronts. Chairman, Board of Governors of the Federal With your indulgence, I would like to revisit Reserve System, Committee on Banking, Hous- these topics from the perspective of a year later. ing and Urban Affairs, U.S. Senate, June 18, 1991. MONETARY POLICY Chairman Riegle, Senator Garn, and members of the committee, it is a privilege to appear before On the first topic, monetary policy, I believe that you today as President Bush's nominee to serve the Federal Reserve should seek to maximize as Vice Chairman of the Federal Reserve Board. sustainable economic growth. Inflation is detri- I am deeply honored that the President has asked mental to this objective. Steady, credible policies me to assume this additional responsibility. with respect to the growth of money and credit When I appeared before you seeking confirma- should contribute to fostering sustainable ecotion of my appointment to the Board last year, I nomic growth with progress toward price stabilspoke briefly in my opening remarks on what I ity. Of course, fiscal policy, international influthought should be the basic goals in the two ences, and economic shocks play important roles major areas of Federal Reserve activity: mone- in affecting the path of the economy as well. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 661 On a conceptual level, monetary policy is regulation of our financial services system. In the straightforward. However, the past year demon- past year, the need for such reform has been strates the practical complexities encountered in underscored by stresses within the financial sysconducting monetary policy. Not long after I tem and pressures on the Federal Deposit Insurarrived at the Board, we were confronted by a ance Corporation's (FDIC's) bank insurance series of extraordinary events that presented a fund. Because constraints in credit availability challenging mix of risks for the economy and within the banking system have a potentially financial markets. In short order, we were con- contractionary influence on the economy, they fronted with the conflict in the Persian Gulf, the have been an important consideration in making associated spike in world oil prices and collapse monetary policy. Stresses in the financial system of consumer confidence; the fiscal policy debate have also been a focal point of our work in the in the Congress that presented markets with the field of banking supervision and regulation. prospect of budgetary paralysis; and, of course, I believe that these difficulties are symptomatic the stresses in our financial system, which led to of a more fundamental problem—outmoded fiwhat is commonly referred to as the credit nancial services regulation created more than crunch. This environment was indeed a complex half a century ago. Technology and innovation financial and economic one that faced the Fed- have radically altered the financial landscape, eral Reserve as the economy moved into reces- resulting in increased competition for banks and sion in the second half of 1990. diminished competitive opportunity in traditional In response, the Federal Reserve has sought to banking markets. The expansion of the federal counteract the contractionary forces in the econ- safety net has shielded banks from the remedial omy, utilizing open market operations, along effects of competition for funds in the financial with cuts in the discount rate and reduced re- marketplace, and regulatory discipline has often serve requirements, to bolster growth in money not been timely and efficient. and credit. As you know, the economy responds We, at the Board, have devoted considerable with a lag to monetary policy actions, and the time to analyzing and debating the causes and stimulative effects of these actions are working potential remedies for the problems facing the their way through the economy and will continue banking system. I, like my colleagues, strongly to do so in the months ahead. While inflationary support the thrust of the Administration's propressures appear to have diminished in recent posal for comprehensive financial services remonths, we must continue to be sensitive to the form. The Administration's proposal is designed risks that inflation poses to the objective of to deal with each of the components of the fostering economic growth in both the long run problem—to limit the expansion of the federal and the near term. safety net, to enhance supervision and establish a Although the past year has been marked by system in which regulators will implement economic shocks and recession, recent develop- prompt, progressively more aggressive, correcments have been encouraging and suggest that tive action as institutions weaken, and most the economy may well have bottomed. The pros- important, to broaden competitive opportunity pects now seem favorable for a recovery that for banks. Within the context of strict protecleads into a longer-term period of economic tions designed to contain the spread of the fedexpansion and progress toward price stability. I eral safety net, to limit potential taxpayer expobelieve, as my colleagues do, that we must sure, and to enforce essential standards of safety continue to assess developments carefully and and soundness; the proposal allows banking instand prepared to take appropriate action to stitutions to apply their resources and expertise foster such an outcome. over the full range of financial activities without artificial geographical constraints. FINANCIAL SERVICES REFORM In my view such reform is long overdue. To be effective, reform must address the fundamental When I was last before this committee, I spoke of causes of the difficulties facing the banking inthe need for comprehensive modernization of the dustry. I believe that the root cause of these Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

662 Federal Reserve Bulletin • August 1991 difficulties is diminished competitive opportu- CONCLUSION nity. Broadened competitive opportunity, both in terms of activities and geographical scope, is There is clearly no shortage of work for the needed to enhance the long-term competitive- Federal Reserve and the Congress, as we seek to ness of the U.S. banking industry and ensure its create a vibrant economy and a vital, world-class long-term stability. A strong, competitive bank- financial system. I have found my experience on ing industry is the best protection for taxpayers the Board over the past year both challenging exposed through the federal safety net. As our and personally rewarding. I hope that I have recent experience with the credit crunch illus- made some positive contribution to policy formatrates, a strong and vital financial services indus- tion as well. I appreciate the opportunity to serve try is also an important contributor to economic the public in this position of responsibility. If I stability and growth. am confirmed as Vice Chairman, I shall devote Therefore, it is encouraging to see comprehen- my energy and abilities to this additional responsive financial services reform on the Congress's sibility and shall look forward to working with agenda this year. I believe that the Administra- my colleagues on the Board and with this comtion and the Congress deserve credit for their mittee on the important and difficult financial and willingness to confront this complex and difficult economic issues facing our nation. legislative task. I, as well as my colleagues, I know that I have only skimmed the surface of support this effort and will seek to be helpful in the issues confronting us today, and I shall be advancing the enactment of comprehensive re- happy to answer any questions the committee form. may have. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

663 Announcements NEW PROCEDURES REGARDING ACCESS ing magnetic tapes or paper, will be increased TO CRA PERFORMANCE EVALUATIONS significantly, beginning January 1,1992, to reflect the higher cost of providing those aspects of the The Federal Reserve Board announced on ACH service in an increasingly electronic envi- June 12, 1991, new procedures for state member ronment. banks to follow regarding the public's access to The Board has determined that the anticipated Community Reinvestment Act (CRA) Perfor- increases in nonelectronic input and output fees mance Evaluations and ratings. The Board estab- should provide sufficient encouragement for delished these new procedures by amending its pository institutions to convert to electronic ac- Regulation BB (Community Reinvestment). The cess. Therefore, the Board has not adopted a new procedures became effective July 11, 1991. proposed per-transaction surcharge to nonelec- Currently, state member banks are required to tronic endpoints to be implemented in January place their CRA Performance Evaluation, which 1993. contains the rating, in a public file within thirty An all-electronic ACH will improve the effibusiness days of its receipt. The new procedures ciency of the ACH mechanism by promoting call for only minor modifications to this rule. timely posting of ACH payments to customer The evaluations must be made available for accounts and will enhance the attractiveness of public inspection, and copies must be provided the ACH system by allowing greater processing to interested parties for a fee not to exceed the flexibility. cost of reproduction and mailing. The state mem- Also, an all-electronic ACH will enhance the ber banks' CRA Public Notices must be amended integrity of the ACH mechanism by reducing to reflect availability of the evaluation and rating. credit and fraud risk, providing a higher level of The final rule clarifies the point that a state security, and improving contingency and disaster member bank may, at its option, prepare a re- recovery capabilities. sponse to the evaluation and make it available in the public comment file. CHANGE IN BOARD STAFF ELECTRONIC ACCESS TO THE FEDERAL The Board of Governors has announced the RESERVE BANKS FOR ACH SERVICES appointment of Jeffrey C. Marquardt to the official staff as Assistant Director for Payment Sys- The Federal Reserve Board approved on June tems Studies in the Division of Reserve Bank 13, 1991, a requirement that all depository insti- Operations and Payment Systems, effective tutions that originate or receive commercial au- July 1, 1991. tomated clearinghouse (ACH) transactions Mr. Marquardt joined the Board's staff in 1981 through the Federal Reserve Banks establish as an economist in the Division of International electronic access to the Reserve Banks for ACH Finance. He was promoted to senior economist services by July 1, 1993. The requirement is the in October 1988. Mr. Marquardt received his result of a proposal that was issued for public B.A. from Michigan State University and his comment in December 1990. M.A. and Ph.D. in economics from the Univer- The Board anticipates that ACH service fees sity of Wisconsin. He also received a J.D. in law for nonelectronic input or output media, includ- from the same university. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

664 Federal Reserve Bulletin • August 1991 SYSTEM MEMBERSHIP: ADMISSION OF Colorado STATE BANKS Aurora Omnibank Iliff The following state banks were admitted to mem- Illinois bership in the Federal Reserve System during the Aledo Bank of Aledo period December 1, 1990, through May 31, 1991: Kentucky Arizona Alexandria Provident Bank Kentucky Trumann First State Bank Arizona Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

665 Legal Developments FINAL RULE—AMENDMENT TO COMMUNITY Section 228.5—Files of public comments and REINVESTMENT ACT recent CRA statements. The Board of Governors is amending 12 C.F.R. Part 228, its regulation to implement changes in the Com- (a) * * * munity Reinvestment Act of 1977 (CRA) contained in (3) Any response to the comments under paragraph Title XII of the Financial Institutions Reform, Recov- (a)(1) of this section that the bank wishes to make; ery and Enforcement Act of 1989 (FIRREA). This final and rule establishes procedures applicable to state member banks governing public access to CRA Performance Evaluations and CRA ratings assigned by the Federal (c) * * * Reserve during the examination process. (3) The most recent CRA Performance Evaluation This final rule requires state member banks to shall, at a minimum, be available at the head office place their CRA Performance Evaluation and CRA and at an office in each local community so desigrating in their public comment file (which they are nated under paragraph (c)(2) of this section. The already required to maintain under existing regula- bank may respond to the CRA Performance Evalutions) within 30 business days of receipt. State mem- ation and may make the response available in the ber banks must make the evaluation and rating same manner as the CRA Performance Evaluation. available for public inspection and provide copies of the evaluation, upon request, to interested parties. Banks may charge a reasonable fee for reproduction of the evaluation and mailing costs, if applicable. State member banks must also amend their CRA Public Notices to reflect the public availability of the FINAL RULE—AMENDMENT TO RULES evaluation and rating. REGARDING AVAILABILITY OF INFORMATION Effective July 11, 1991, 12 C.F.R. Part 228 is amended as follows: The Board of Governors has adopted as a final rule, without change, the amendment to 12 C.F.R. Part 261, its Rules Regarding Availability of Information that Part 228—(Amended) was adopted by interim rule effective January 2, 1991 (55 Federal Register 49,875, December 3, 1990). The Accordingly, the interim rule amending 12 C.F.R. Part interim rule reflected changes in the direct costs to the 228 which was published at 55 Federal Register Board to conduct searches, review documents, and 26,624-26,628 on June 28, 1990, is adopted as a final copy documents in response to requests made under rule with the following changes: the Freedom of Information Act ("FOIA") by adding an "appendix A" to 12 C.F.R. 261.10—Freedom of 1. The authority citation for Part 228 continues to read Information Fee Schedule. "Appendix A" amended as follows: the Board's previous fee schedule established in 1987. Appendix A will remain the same as that adopted in Authority: Community Reinvestment Act of 1977 [title the interim rule. VIII, Pub. L. 95-128, 91 Stat. 1147 (12 U.S.C. 2901 Effective June 27, 1991, for the reasons set forth in et seq.)}\ 12 U.S.C. 321, 325, 1814, 1816, 1828, 1842. this document, and pursuant to the Board's authority under the Freedom of Information Reform Act of 1986 (Pub. L. 99-570, 5 U.S.C. 552(a)(4)(A)(i)) to promulgate rules implementing the FOI Reform Act, 2. In section 228.5, paragraphs (a)(3) and (c)(3) are the Board confirms its amendment of 12 C.F.R. Part revised to read as follows: 261. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

666 Federal Reserve Bulletin • August 1991 Part 261—Rules Regarding Availability of (1) the Oklahoma bank to be acquired has been in Information existence and continuous operation for more than five years or was chartered before May 7, 1986; Accordingly, the interim rule amending 12 C.F.R. Part (2) the Oklahoma bank would meet applicable cap- 261 which was published at 55 Federal Register 49,876 ital adequacy standards immediately after the acquion December 3,1990, is adopted as a final rule without sition; and change. (3) the acquirer has complied with certain procedural requirements.3 ORDERS ISSUED UNDER BANK HOLDING Upon consummation, Bank will have been chartered COMPANY ACT and in existence and continuous operation for more than five years and will meet all capital requirements. Orders Issued Under Section 3 of the Bank In addition, the record indicates that Boatmen's has Holding Company Act complied with all applicable procedural requirements. Accordingly, the proposed acquisition is specifically Boatmen's Bancshares, Inc. authorized by the statute laws of Oklahoma, and St. Louis, Missouri approval of this application is not barred by the Douglas Amendment.4 Order Approving Acquisition of a Bank Boatmen's is a multi-bank holding company operating banking subsidiaries located in Missouri, Illi- Boatmen's Bancshares, St. Louis, Missouri ("Boat- nois, and Tennessee, and a limited purpose consumer men's"), a bank holding company within the mean- credit bank in Delaware. Boatmen's is the largest ing of the Bank Holding Company Act ("BHC Act"), banking organization in Missouri, controlling total has applied for the Board's approval under section deposits of approximately $12.2 billion, representing 3(a)(3) of the BHC Act (12 U.S.C. § 1842(a)(3)) to 22.5 percent of the total deposits in commercial acquire all of the voting shares of First Interstate banking organizations in the state.5 Bank is the third Bank of Oklahoma, N.A., Oklahoma City, Oklahoma largest banking institution in Oklahoma, with total ("Bank"). deposits of approximately $648.0 million, represent- Notice of the application, affording interested per- ing 2.7 percent of the total deposits in commercial sons an opportunity to submit comments, has been banking organizations in the state. Consummation of published (56 Federal Register 13,153 (1991)). The this proposal would not result in any significant time for filing comments has expired, and the Board adverse effect on the concentration of banking rehas considered the applications and all comments sources in Oklahoma. received in light of the factors set forth in section 3(c) Boatmen's does not compete directly with Bank in of the BHC Act. any banking market. Accordingly, consummation of Section 3(d) of the BHC Act, the Douglas Amend- this proposal would not result in a significantly ment, prohibits the Board from approving an applica- adverse effect on competition in any relevant banking tion by a bank holding company to acquire control of market. any bank located outside of the bank holding com- The financial and managerial resources and future pany's home state, unless such acquisition is "specif- prospects of Boatmen's, its subsidiary banks, and ically authorized by the statute laws of the State in Bank are consistent with approval. The Board also which [the] bank is located, by language to that effect finds that considerations relating to the convenience and not merely by implication."1 The home state of Boatmen's is Missouri, while Bank is located in Oklahoma.2 3. Okla. Stat. Ann. tit. 6, § 506D. (West Supp. 1991). Oklahoma's interstate banking law also subjects an out-of-state bank holding The statute laws of Oklahoma specifically authorize company to any conditions, restrictions and requirements imposed by any out-of-state bank holding company to acquire a the foreign state on acquisitions by Oklahoma banking organizations bank in Oklahoma under the following conditions: that are more restrictive than the conditions imposed by the foreign state on acquisitions by in-state banking organizations. § 506D(3). Missouri's interstate statute does not impose any such conditions on Oklahoma banking organizations. Mo. Ann. Stat. § 362.925 (Vernon Supp. 1991). In addition, the Missouri and Oklahoma banking depart- 1. 12 U.S.C. § 1842(d). ments determined in a 1987 Reciprocal Agreement that the banking 2. A bank holding company's home state is that state in which the laws of Missouri and Oklahoma permit interstate acquisitions of banks operations of the bank holding company's banking subsidiaries were and bank holding companies between the two states. principally conducted on July 1, 1966, or the date on which the 4. The office of the Oklahoma Bank Commissioner has indicated company became a bank holding company, whichever is later. that the proposed acquisition is authorized under Oklahoma law. (12 U.S.C. § 1842). 5. All banking data are as of December 31, 1990. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 661 and needs of the communities to be served are consis- of $149.7 million, representing less than 1 percent of tent with approval. total deposits in commercial banks in the state. Based on the foregoing and other facts of record, Consummation of this proposal would not increase the Board has determined that the application should significantly the concentration of banking resources be, and hereby is, approved. The transaction shall in North Carolina. not be consummated before the thirtieth calendar day First Commercial and Iredell do not compete difollowing the effective date of this Order, or later rectly in any banking market. Accordingly, consumthan three months after the effective date of this mation of the proposal would not have any significant Order, unless such period is extended for good cause adverse effect on existing competition in any relevant by the Board or by the Federal Reserve Bank of St. banking market. Consummation also would not have Louis, pursuant to delegated authority. any significant adverse effect on probable future By order of the Board of Governors, effective competition in any relevant banking market. The June 17, 1991. financial and managerial resources and future prospects of First Commercial and Iredell also are con- Voting for this action: Chairman Greenspan and Governors sistent with approval. Angell, Kelley, LaWare, and Mullins. In considering the convenience and needs of the communities to be served, the Board is required, JENNIFER J. JOHNSON under the Community Reinvestment Act Associate Secretary of the Board (12 U.S.C. § 2901 et seq.) ("CRA"), to consider an institution's record of serving the credit needs of the community, including low- and moderate-income First Commercial Holding Corporation neighborhoods. The CRA requires the federal finan- Asheville, North Carolina cial supervisory agencies to encourage financial institutions to help meet the credit needs of the local Order Approving Acquisition of a Bank communities in which they operate consistent with the safe and sound operation of such institutions. To First Commercial Holding Corporation, Asheville, accomplish this end, the CRA requires the appropri- North Carolina ("First Commercial"), a bank holding ate federal supervisory authority to "assess an insticompany within the meaning of the Bank Holding tution's record of meeting the credit needs of its Company Act ("BHC Act"), has applied under sec- entire community, including low- and moderate-intion 3(a)(3) of the BHC Act to acquire all of the voting come neighborhoods, consistent with the safe and shares of The Bank of Iredell, Statesville, North sound operation of the institution."2 Carolina ("Iredell"). In this regard, the Board has considered comments Notice of the application, affording interested per- filed by the Asheville Reinvestment Alliance ("Protsons an opportunity to submit comments, has been estant"). Protestant alleges that components of published (55 Federal Register 29,895 (1990)). The Bank's CRA program are ineffective, including its time for filing comments has expired, and the Board outreach programs to ascertain the credit needs of its has considered the application and all comments re- entire community, particularly low- and moderateceived in light of the factors set forth in section 3(c) of income areas, call program for minority-owned and the BHC Act. small businesses, and advertising and marketing First Commercial, a one bank holding company, is techniques to target minority and low- and moderatethe 30th largest commercial banking organization in income communities. In addition, the Protestant North Carolina, controlling deposits of $95.0 million, notes the following deficiencies relating to specific representing less than 1 percent of total deposits in parts of Bank's service area: commercial banking organizations in the state. Ire- (1) lack of sufficient involvement in the development dell is the 45th largest commercial banking organiza- of low-income housing and minority-owned busition in North Carolina, controlling deposits of $54.6 nesses in the City of Asheville, North Carolina; million, representing less than 1 percent of total (2) failure to develop a policy on branch closings and deposits in commercial banking organizations in the placement of the Asheville branches in locations state.1 Upon consummation of this proposal, First more accessible to persons in affluent neighbor- Commercial would become the 24th largest banking hoods than persons in low- and moderate-income organization in North Carolina, controlling deposits neighborhoods of Asheville; and 1. Data are as of December 31, 1990. 2. 12 U.S.C. § 2901. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

668 Federal Reserve Bulletin • August 1991 (3) exclusion of Madison County, North Carolina, its delineated community. For example, Bank's CRA from its service community, thereby inaccurately officer has met with the Neighborhood Housing Serdescribing its service community.3 vices of Asheville, North Carolina, Inc. ("NHS"), an agency funded by the Department of Housing and The Board has carefully reviewed the CRA perfor- Urban Development Community Development Block mance record of First Commercial's subsidiary bank, Grant Program and designed to operate a revolving First Commercial Bank, Asheville, North Carolina loan program for low- and moderate-income residents ("Bank"), as well as comments received from Protes- in the Montford neighborhood of Asheville, North tant and First Commercial's responses to those com- Carolina.7 In addition, each officer is responsible for ments in light of the CRA, the Board's regulations, and making a minimum of three contacts per calendar the Statement of the Federal Financial Supervisory quarter with community leaders, civic and community Agencies Regarding the Community Reinvestment Act groups, and forums to discuss community credit needs ("Agency CRA Statement").4 The Agency CRA and services.8 Statement provides guidance regarding the types of Bank's calling program also includes visits to small policies and procedures that supervisory agencies be- and medium-sized companies and individual business lieve financial institutions should have in place in order leaders throughout its delineated area.9 These calls are to fulfill their responsibilities under the CRA on an documented and reviewed monthly, and the results of ongoing basis and the procedures that the supervisory this program indicate that the calls reach a broad agencies will use during the application process to segment of the business community, including minorreview an institution's CRA compliance and perfor- ity businesses.10 In addition, Bank is a member of the mance. The Agency CRA Statement also suggests that Small Business and Women and Minority Committees decisions by agencies to allow financial institutions to of the Asheville Chamber of Commerce, and a variety expand will be made pursuant to an analysis of the of other business-oriented organizations.11 institution's overall CRA performance and will be Bank also has increased the involvement of its board based on the actual record of performance of the of directors in its CRA policies and credit ascertaininstitution.5 ment efforts. Bank's board has approved a CRA policy Initially, the Board notes that Bank received a that outlines goals and objectives to improve Bank's satisfactory rating from its primary regulator in the CRA program and specifies the oversight responsibilmost recent examination of its CRA performance ities of the board. In addition, the board has appointed ("the CRA examination").6 The Agency CRA State- a senior Bank official to serve as a CRA officer, and ment provides that a CRA examination is an important has created a CRA committee that meets monthly, and often controlling factor where, as in this case, oversees all CRA activities, and ensures that informaspecific issues raised by Protestant were incorporated tion is obtained from sources throughout the commuin the review of Bank. Accordingly, the Board has nity. Board members are regularly briefed on CRA considered the allegations of Protestants discussed matters, and submit quarterly reports detailing the below in light of this satisfactory rating. Components of CRA Program 7. This program is designed to provide credit assistance to residents in low- and moderate-income census tracts 2 and 3 of the Asheville Bank has initiated an outreach program whereby of- MSA. 8. Bank has established contacts with several civic organizations, ficers meet with individuals and groups representing including the Asheville Community Relations Office, the Ashevillecivic, governmental, and business interests located in Buncombe Community Relations Council, and the Western North Carolina Habitat for Humanity. 9. Bank is a participating bank in the Small Business Administration Guaranteed Loan Program. 3. Protestant also alleges that Bank has an insufficient number of 10. Calls are summarized and reviewed monthly by Bank's CRA minority full-time employees. Although the Board fully supports Compliance Officer, Business Development Officer, and board of affirmative action programs designed to promote equal opportunity in directors. In addition, calls made to assist low- and moderate-income every aspect of a bank's personnel policies and practices in the individuals and to discuss government-assisted programs are listed employment, development, advancement, and treatment of employ- separately. ees and applicants for employment, the Board believes that the alleged 11. These organizations include: the Asheville-Buncombe Developdeficiencies in Bank's general personnel practices are beyond the ment Corporation, the Downtown Development Corporation, the scope of the factors assessed under the CRA and under the conve- Small Business Council of the Asheville Chamber of Commerce, the nience and needs requirement of the BHC Act. See Fifth Third Bank, Small Business Administration Service Corporation of Retired Exec- 77 Federal Reserve Bulletin 347, 348 n.7 (1991). utives Small Business Workshop, the Asheville Board of Realtors, the 4. 54 Federal Register 13,742 (1989). Home Builders of Asheville, and the Mortgage Lenders of Western 5. Id. North Carolina. Bank is also involved with the Asheville Downtown 6. The Federal Deposit Insurance Corporation ("FDIC") con- Development Commission and Industrial Development Board, two ducted an examination of Bank's performance under the CRA as of organizations designed to generate business and economic growth, May 13, 1991. and foster community redevelopment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 661 activities and contacts that they have made during the fact that approximately 12 percent of Buncombe reported quarter. Minutes from board meetings reflect County's population resides in low- and moderatethe directors' discussion of Bank's CRA program and income census tracts.14 In addition, Bank approved all the board's emphasis on Bank's efforts in low- and applications in Buncombe County for mortgages from moderate-income areas. minority applicants in 1990. Bank is also a member of In addition, Bank has taken steps to improve the the Community Investment Corporation of North marketing and advertising of its services to target all Carolina, an organization that provides financing serareas of its community. Bank has begun to advertise in vices for low- to moderate-income housing projects in the Asheville Advocate, a local minority-owned news- the Asheville area.15 paper designed to reach the minority population, and Bank's small business activities include government in The Black Pages, a directory of local minority- lending programs such as SB A.16 In addition, Bank is owned businesses. Bank also has increased its adver- a participant in the Community Loan Pool, an organitising to include commercials that promote specific zation of financial institutions in the Asheville area credit products of Bank, including deposit services, established to provide a funding source for minority home improvement loans, and residential mortgages.12 businesses that do not qualify for conventional bank Mortgage rate and service information is promoted in financing or SB A programs. Bank's president and local papers and through Bank's contacts with all of CEO is also a director of the Asheville Downtown the realty firms in the area, including Asheville's only Development Commission, an organization that has minority-owned realty firm. Bank has also initiated administered $67 million in reinvestment funds over plans to conduct a direct mail campaign focusing on the last nine years. Bank has co-sponsored a workshop persons who live in low- to moderate-income areas on small business financing and has arranged to sponbased on zip codes. sor membership of a minority business in the Asheville Finally, Bank has improved its documentation and Chamber of Commerce's Member Share Program. analysis of the geographic distribution of its credit First Commercial has adopted a specific written extensions. Bank has provided detailed information policy with regard to branch closings, which provides separated by county showing the number of loans for the board of directors both to analyze the impact of approved and denied in the following five categories: any proposed office closing on the local community retail/construction loans, commercial loans, commer- and to consider alternative courses of action.17 In the cial real estate loans, wholesale mortgage loans, and Asheville area, Bank is the only bank that operates on consumer real estate loans. This analysis shows that Saturday and has extended hours of operation Bank approved approximately 86.2 percent of these throughout the week in order to improve its service to types of loan applications for the period 1988 to 1990. Bank's entire community.18 Bank's North and South branch offices in Asheville are located on public bus Specific Portions of Service Area routes and offer full services and extended hours of operation. The CRA examination also concluded that The record indicates that Bank has undertaken a Bank's definition of its community was reasonable and number of steps to address the credit needs of low- and did not unreasonably exclude a portion of Bank's moderate-income neighborhoods, including the por- service area as alleged by Protestant.19 tions of Bank's service area identified in Protestant's comments. Bank has provided a geographic survey of all its lending activities in Buncombe County which 14. Bank makes $1,500 consumer loans, which are considered the constitutes all of the Asheville MSA.13 The survey lowest minimum loan in its market. Bank also offers senior citizen and demonstrates that for 1990, approximately 10 percent low-cost checking accounts. 15. Bank also participates in both FHA and VA lending programs. of all outstanding loans by Bank in Buncombe County In the last quarter of 1990, Bank's mortgage loan division originated were made within low- and moderate-income census and sold 57 VA and FHA type home mortgages in the aggregate tracts. This loan volume compares favorably with the amount of approximately $3.6 million. 16. Bank participates in the SBA 504 guaranteed loan program through the Asheville-Buncombe Development program, a certified development company. 12. In response to suggestions from community groups, Bank now 17. The policy also requires notices of at least 90 days prior to uses a variety of models of different ethnic backgrounds in its changes in service and must include Bank's rationale for the decision. television commercials. 18. All of Bank's branches are open until at least 5:00 p.m., and two 13. The CRA examination found as a general matter that Bank's of its Asheville branches close at 7:00 p.m. Bank's mortgage loan extensions of credit and denials demonstrated a reasonable penetra- officers also accept mortgage applications at an applicant's home or tion of all segments of Bank's delineated community. In addition, place of work. geocoding of Bank's loans indicated a reasonable distribution of loans, 19. Bank received only 58 loan applications from residents in including loans in low- and moderate-income areas. The CRA exam- Madison County for the two-year period from 1988 to 1990. Bank's ination also found no evidence of prohibited discriminatory or other total lending in Madison County represents less than 1 percent of its illegal credit practices. total lending in its entire service community over this same period. In Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

670 Federal Reserve Bulletin • August 1991 For the reasons discussed above, and on the basis of Corporation, New York, New York ("Company"), in all facts of record, the Board believes that Bank's the following activities: CRA record is consistent with approval of this appli- (1) Intermediating in the international swap markets cation.20 The Board expects Bank to continue in its by acting as an originator and principal in interest efforts to strengthen its CRA performance. rate swap and currency swap transactions; Based on the foregoing and other facts of record, the (2) Acting as an originator and principal with respect Board has determined that the application should be, to certain interest rate and currency risk-manageand hereby is, approved. The acquisition shall not be ment products such as caps, floors and collars, as consummated before the thirtieth calendar day follow- well as options on swaps, caps, floors and collars ing the effective date of this Order; or later than three ("swap derivative products"); months following the effective date of this Order (3) Acting as a broker or agent with respect to the unless such period is extended for good cause by the foregoing transactions or instruments; and Board or by the Federal Reserve Bank of Richmond, (4) Acting as adviser to institutional customers reacting pursuant to delegated authority. garding financial strategies involving interest rate By order of the Board of Governors, effective and currency swaps and swap derivative products. June 17, 1991. Notice of the application, affording interested per- Voting for this action: Chairman Greenspan and Governors sons an opportunity to submit comments, has been Angell, Kelley, La Ware, and Mullins. published (56 Federal Register 19,854 (1991)). The time for filing comments has expired, and the Board JENNIFER J. JOHNSON has considered the application and all comments re- Associate Secretary of the Board ceived in light of the factors set forth in section 4 of the BHC Act. Orders Issued Under Section 4 of the Bank With total consolidated assets equivalent to approx- Holding Company Act imately $457 billion, Dai-Ichi is the largest banking organization in the world.1 In the United States, The Dai-Ichi Kangyo Bank, Limited Dai-Ichi owns a bank subsidiary in Los Angeles, Tokyo,Japan California; agencies in Atlanta, Georgia; San Francisco, California; and Los Angeles, California; and Order Approving Application to Engage in Various branches in New York, New York; and Chicago, Interest Rate and Currency Swap Activities Illinois. It engages in various nonbanking activities through a number of subsidiaries, including Company. The Dai-Ichi Kangyo Bank, Limited, Tokyo, Japan The Board previously has determined by order that ("Dai-Ichi"), a bank holding company within the the proposed activities are closely related to banking meaning of the Bank Holding Company Act ("BHC and permissible for bank holding companies within the Act"), has applied under section 4(c)(8) of the BHC meaning of section 4(c)(8) of the BHC Act.2 Dai-Ichi Act (12 U.S.C. § 1843(c)(8)), and section 225.23(a)(3) proposes to engage in these swap activities in accorof the Board's Regulation Y (12 C.F.R. 225.23(a)(3)) dance with all of the provisions and conditions set to engage de novo through its subsidiary, DKB Credit forth in those orders. In order to approve this application, the Board is required to determine that the performance of the proposed activities by Dai-Ichi "can reasonably be addition, in 1989 Bank included within its community a portion of expected to produce benefits to the public . . . that Madison County within a ten-mile radius of Bank's Weaverville Branch. outweigh possible adverse effects, such as undue 20. Protestant has also requested that the Board hold a public concentration of resources, decreased or unfair comhearing or meeting to assess further facts surrounding Bank's CRA petition, conflicts of interests, or unsound banking performance. Generally, under the Board's rules, the Board may, in its discretion, hold a public hearing or meeting on an application to practices." 12 U.S.C. § 1843(c)(8). clarify factual issues related to the application and to provide an Company appears to be capable of managing the opportunity for testimony, if appropriate. 12 C.F.R. 262.3(e) and risks associated with the proposed activities. Dai-Ichi, 262.25(d). The Board has carefully considered this request. In the Board's view, the parties have had ample opportunity to present submissions, and Protestant has submitted substantial written comments that have been considered by the Board. In light of these facts, the Board has 1. Data are as of March 31, 1991. determined that a public meeting or hearing is not necessary to clarify 2. See, e.g., The Sanwa Bank, Limited, 11 Federal Reserve Bulletin the factual record in this application, or otherwise warranted in this 64 (1991); The Fuji Bank, Limited, 76 Federal Reserve Bulletin 768 case. Accordingly, the request for a public meeting or hearing on this (1990); The Sumitomo Bank, Limited, 75 Federal Reserve Bulletin 582 application is hereby denied. (1989). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 661 which has extensive experience in lending and financ- counterparties, Company will disclose to each cusing services worldwide, has undertaken to provide tomer the fact that Company may have an interest as a credit screening for all potential counterparties of counterparty principal or broker in the course of Company through its credit desk services in Tokyo, action ultimately chosen by the customer. Also, in any Japan. In appropriate cases, Company will obtain a case in which Company has an interest in a specific letter of credit on behalf of, or collateral from, a transaction as an intermediary or principal, Company 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.4 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.5 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, Dai-Ichi has committed that: match. Company will not enter into unmatched or (1) Company's financial advisory activities will not unhedged swaps for its own account for speculative encompass the performance of routine tasks or purposes. Company's management will set absolute operations for a client on a daily or continuous limits on the level of risk to which its swap portfolio basis; may be exposed. Company's exposure to price risk (2) Disclosure will be made to each potential client will be monitored by both business management and of Company that Company is an affiliate of Dai-Ichi; internal auditing personnel to guarantee compliance (3) Company will not make available to Dai-Ichi or with the risk limitations imposed by management. any of Dai-Ichi's subsidiaries confidential informa- Auditing personnel will report directly to senior man- tion received from Company's clients, except with agement to ensure that any violations of portfolio risk the client's consent; and limitations are reported and corrected. (4) Advice rendered by Company on an explicit fee With respect to the risk associated with the potential basis will be without regard to correspondent balfor differences between the floating rate indices on two ances maintained by a client of Company at Dai-Ichi matched or hedged swaps ("basis risk"), Company's or any of Dai-Ichi's depository subsidiaries. management will impose absolute limits on the aggregate basis risk to which Company's swaps portfolio In every case involving a nonbanking acquisition by may be exposed. If the level of risk threatens to a bank holding company under section 4 of the BHC exceed the limits at any time, Company will actively Act, the Board considers the financial condition and seek to enter into matching transactions for its unmatched, hedged positions. Company's internal auditing staff, together with management, will monitor 4. In any transaction in which Company arranges a swap transaction compliance with the management-imposed basis risk between an affiliate and a third party, the third party will be informed limits.3 that Company is acting on behalf of an affiliate. 5. Dai-Ichi defines an institutional customer as: In addition, Company intends to minimize opera- (A) a bank (acting in an individual or fiduciary capacity); an tions risk through the recruitment and training of an insurance company; a registered investment company under the Investment Company Act of 1940; or a corporation, partnership, experienced back-office support staff and the use of a trust, proprietorship, organization or institutional entity with separate operational and data processing structure for assets exceeding $1 million that regularly engages in transactions in securities; processing swap and hedging transactions. (B) an employee benefit plan with assets exceeding $1 million or In order to minimize any possible conflicts of inter- whose investment decisions are made by a bank, insurance ests between Company's role as a principal or broker company or investment advisor registered under the Investment Advisers Act of 1940; in swap transactions and its role as advisor to potential (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 Secu- 3. In addition to price and basis risk, the value of a swap option is rities Exchange Act of 1934; or other securities, investment or subject to market expectations of the future direction and rate of banking professional; change in interest rates, or volatility risk. Company's management (E) any government or government entity; or will impose absolute limits on the level of volatility risk to which (F) an entity all of the equity owners of which are institutional Company's swap portfolio may be exposed. customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

672 Federal Reserve Bulletin • August 1991 resources of the applicant and its subsidiaries and the Dauphin Deposit Corporation effect of the transaction on these resources.6 After Harrisburg, Pennsylvania making adjustments to reflect Japanese banking and accounting principles, including consideration of a Order Approving Application to Acquire a portion of unrealized appreciation in Dai-Ichi's port- Broker-Dealer and Thereby Underwrite and Deal in folio of equity securities the Board concludes that All Types of Securities, Engage in Other Securities financial considerations are consistent with approval Related Activities, and Engage in Other Nonbanking of this application. The managerial resources of Dai- Activities Ichi also are consistent with approval. Consummation of the proposal would provide added convenience to Dai-Ichi's customers. In addition, the Dauphin Deposit Corporation, Harrisburg, Pennsylva- Board expects that the de novo entry of Dai-Ichi into nia ("Applicant"), a bank holding company subject to the market for these activities would increase the level the Bank Holding Company Act (12 U.S.C. § 1841, of competition among providers of these services. Un- et seq.) (the "BHC Act") has applied, pursuant to der the framework established in this and prior deci- section 4(c)(8) of the BHC Act, and section sions, consummation of this proposal is not likely to 225.23(a)(3) of the Board's Regulation Y (12 C.F.R. result in any significant adverse effects, such as undue 225.23(a)(3)), for approval to acquire Hopper, Soliday concentration of resources, decreased or unfair compe- & Co., Inc., Lancaster, Pennsylvania ("Company"), tition, conflicts of interests, or unsound banking prac- and thereby engage, through Company, in the followtices. Accordingly, the Board has determined that the ing activities: performance of the proposed activities by Dai-Ichi can (1) underwriting and dealing in securities that state reasonably be expected to produce benefits to the member banks are permitted to underwrite and deal public. in under Section 16 of the Banking Act of 1933, Based on the foregoing and other facts of record, the 12 U.S.C. § 24(Seventh), (the "Glass-Steagall Board has determined to, and hereby does, approve the Act"), (hereinafter "bank-eligible securities"), as application subject to the commitments made by Dai- permitted by section 225.25(b)(16) of Regulation Y, Ichi, as well as all of the terms and conditions set forth 12 C.F.R. 225.25(b)(16); in this order and in the above-noted Board orders that (2) underwriting and dealing in, on a limited basis, relate to these activities. The Board's determination is all other types of debt securities, including without also subject to all of the conditions set forth in Regula- limitation, municipal revenue bonds, mortgagetion Y, including those in sections 225.4(d) and related securities, consumer-receivable-related se- 225.23(b), and to the Board's authority to require curities, commercial paper, sovereign debt securimodification or termination of the activities of a bank ties, corporate debt, debt securities convertible into holding company or any of its subsidiaries as the Board equity securities, and securities issued by a trust or finds necessary to assure compliance with, and to other vehicle secured by or representing interests in prevent evasion of, the provisions of the BHC Act and debt obligations ("bank-ineligible debt securities"); the Board's regulations and orders issued thereunder. (3) underwriting and dealing in, on a limited basis, This transaction shall not be consummated later equity securities, including without limitation, comthan three months after the effective date of this order, mon stock, preferred stock, American Depositary unless such period is extended for good cause by the Receipts, options, limited partnership units, war- Board or by the Federal Reserve Bank of San Fran- rants, and securities issued by closed-end investcisco, pursuant to delegated authority. ment companies but not securities issued by open- By order of the Board of Governors, effective end investment companies ("bank-ineligible equity June 10, 1991. securities"); (4) acting as agent in the private placement of all Voting for this action: Chairman Greenspan and Governors types of securities, including providing related ad- Kelley, La Ware, and Mullins. Absent and not voting: Gov- visory services, and buying and selling securities on ernor Angell. the order of investors as a "riskless" principal; (5) providing "full-service brokerage" (i.e., invest- JENNIFER J. JOHNSON ment advisory and brokerage services separately Associate Secretary of the Board and on a combined basis) to both institutional and retail customers; (6) providing financial advice to state and local 6. 12 C.F.R. 225.24; The Fuji Bank, Limited, 75 Federal Reserve governments, including advice with respect to the Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal Reserve Bulletin 155, 156 (1987). issuance of their securities, pursuant to section Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 661 225.25(b)(4)(v) of Regulation Y, 12 C.F.R. Glass-Steagall Act, provided that the underwriting 225.25(b)(4)(v); and and dealing subsidiary derives no more than 10 percent (7) providing advice in connection with merger, of its total gross revenue from underwriting and dealacquisition, divestiture, recapitalization and financ- ing in bank-ineligible securities over any two-year ing transactions, and structuring and arranging loan period.3 Applicant has committed that Company will syndications for financial and non-financial institu- conduct its underwriting and dealing activities with tions; performing valuations for financial and non- respect to bank-ineligible securities subject to the 10 financial institutions; providing fairness opinions in percent revenue test established by the Board in its connection with mergers, acquisitions and similar previous orders, and to the prudential limitations transactions for financial and non-financial institu- established by the Board in its J.P. Morgan & Comtions, and conducting feasibility studies for corpo- pany Incorporated, et al. order as modified by the rations (collectively, "financial advisory services"). Modification Order.4 Applicant's proposal is broad enough to include Notice of the application, affording interested per- underwriting and dealing in shares of closed-end insons an opportunity to submit comments on the pro- vestment companies and unit investment trusts (but posal, has been published (56 Federal Register 19,855 not open-end investment companies, i.e., mutual (1991)). The time for filing comments has expired, and funds). Underwriting or dealing activities involving the Board has considered the application and all investment company securities under this Order must comments received in light of the public interest be conducted in accordance with the limitations confactors set forth in section 4(c)(8) of the BHC Act. tained in the existing provisions of Regulation Y Applicant, with total consolidated assets of $3.4 authorizing bank holding companies to provide advisbillion, is the sixth largest banking organization in ory activities to investment companies. In particular, Pennsylvania.1 It operates one banking subsidiary in Regulation Y provides that a bank holding company Pennsylvania and engages in community development and its subsidiaries may not purchase for their own and insurance agency and underwriting activities pur- account, or engage directly or indirectly in the sale or suant to 12 C.F.R. 225.25(b)(6) and (8), through non- distribution of, the securities of any investment combanking subsidiaries. pany that the holding company advises or sponsors. 12 C.F.R. 225.125(g)(1)(h). This regulation applies to all types of investment companies, including unit Underwriting and Dealing in Bank-Ineligible investment trusts. Securities The Board has determined that, subject to the pruden- Private Placement and "Riskless Principal" tial framework of limitations established in previous Activities decisions to address the potential for conflicts of interests, unsound banking practices, or other adverse The Board previously has determined that, subject to effects, the proposed underwriting and dealing activi- certain prudential limitations established to address ties are so closely related to banking as to be proper the potential for conflicts of interests, unsound bankincidents thereto within the meaning of section 4(c)(8) ing practices or other adverse effects, the proposed of the BHC Act.2 The Board also has determined that private placement and riskless principal activities are the conduct of these securities underwriting and deal- so closely related to banking as to be proper incidents ing activities is consistent with section 20 of the thereto within the meaning of section 4(c)(8) of the BHC Act.5 The Board also has determined that acting 1. Data are as of December 31, 1990. 2. J.P. Morgan & Company Incorporated, The Chase Manhattan 3. Modification Order; and J.P. Morgan & Company Incorporated, Corporation, Bankers Trust New York Corporation, Citicorp, and et al. Security Pacific Corporation, 75 Federal Reserve Bulletin 192 (1989) 4. Compliance with the revenue limits shall be calculated in the ("J.P. Morgan & Company Incorporated, et a/."), 75 Federal Re- manner set forth in J.P. Morgan & Company Incorporated, et al., at serve Bulletin 192 (1989); Chemical New York Corporation, et al., 73 196-97. In light of the fact that Applicant is acquiring a going concern Federal Reserve Bulletin 731 (1987); Citicorp, et al., 73 Federal with outstanding underwriting commitments, the Board believes that Reserve Bulletin 473 (1987), ajfd sub nom., Securities Industry allowing Company to calculate compliance with the revenue limitation Association v. Board of Governors of the Federal Reserve System, 839 on an annualized basis during the first year following consummation of F.2d 47 (2d Cir. 1988), cert, denied, 486 U.S. 1059 (1988); as modified the acquisition and thereafter on a quarterly basis would be consistent by Order, dated September 21, 1989, 75 Federal Reserve Bulletin 751 with J.P. Morgan & Company Incorporated, et al. (1989) ("Modification Order"), affd sub nom., Securities Industry 5. J.P. Morgan & Company Incorporated, 76 Federal Reserve Association v. Board of Governors of the Federal Reserve System, 900 Bulletin 26 (1990) ("J.P. Morgan"); Bankers Trust New York Corpo- F.2d 360 (D.C. Cir. 1990) (collectively, "section 20 orders"). The ration, 75 Federal Reserve Bulletin 829 (1989) ("Bankers Trust"). Board hereby adopts and incorporates herein by reference the reason- Applicant has not proposed that its nonbank subsidiaries purchase ing and analysis from the section 20 orders. securities privately placed by Company nor proposed that Applicant Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

674 Federal Reserve Bulletin • August 1991 as agent in the private placement of securities and Financial Advisory Activities purchasing and selling securities on the order of investors as a "riskless principal" do not constitute under- Applicant proposes that Company provide advice in writing and dealing in securities for purposes of sec- connection with merger, acquisition, divestiture, retion 20 of the Glass-Steagall Act, and that revenue capitalization and financing transactions, and structurderived from these activities is not subject to the 10 ing and arranging loan syndications for financial and percent revenue limitation on ineligible securities un- non-financial institutions; perform valuations for fiderwriting and dealing.6 Applicant has committed that nancial and non-financial institutions; provide fairness Company will conduct its private placement and "risk- opinions in connection with mergers, acquisitions and less principal" activities using the same methods and similar transactions for financial and non-financial procedures, and subject to the same prudential limita- institutions, and conduct feasibility studies for corpotions established by the Board in the Bankers Trust rations (collectively, "financial advisory services"). and the J.P. Morgan orders.7 The Board previously has approved these activities for bank holding companies. See Signet Banking Corpo- Securities Brokerage Activities ration, 73 Federal Reserve Bulletin 59 (1987), and Banc One Corporation, 76 Federal Reserve Bulletin The Board previously has determined by order that 756 (1990). Applicant proposes to conduct these activfull-service brokerage activities are permissible for ities in accordance with the commitments listed in the bank holding companies under section 4(c)(8) of the Board's previous orders. BHC Act.8 Applicant proposes that Company engage in these activities in accordance with all of the condi- Financial Factors, Managerial Resources and Other tions set forth in those orders.9 In addition, Company Considerations will provide discretionary investment management services for institutional customers only, subject to the The Board has reviewed the capitalization of both same terms and conditions as previously approved by Applicant and Company in accordance with the stanthe Board.10 dards set forth in the J.P. Morgan & Company, Incorporated order, and finds the capitalization of each to be consistent with approval of the proposal. With respect to the capitalization of Company, apor its subsidiaries lend to an issuer for the purpose of repaying proval of the requested activities is limited to a level securities placed by Company. 6 .Id. consistent with the projections of position size and 7. In previous orders approving riskless principal activities, the types of securities contained in the application. Ac- Board has relied on commitments by bank holding companies to cordingly, the Board concludes that financial considrefrain from entering quotes for specific securities in the NASDAQ or any other dealer quotation system in connection with riskless princi- erations are consistent with approval of the applicapal transactions. Bankers Trust, at 832. Applicant proposes that tion. The managerial resources of Applicant also are Company, in acting as a riskless principal, may (i) enter bid or ask quotations; or publish "offering wanted" or "bid wanted" notices on consistent with approval. trading systems other than an exchange or the NASDAQ. In order to In order to approve this application, the Board is ensure that Company would not hold itself out as a market maker with required to determine that the performance of the respect to securities for which it acts as riskless principal, Applicant has committed that Company would not enter price quotations on proposed activities by Applicant "can reasonably be different sides of the market for a particular security for two business expected to produce benefits to the public . . . that days. In other words, after entering a "bid" quote with respect to the outweigh possible adverse effects, such as undue same security, and vice versa. In view of the fact that Company would otherwise conduct its riskless principal activities in a manner consis- concentration of resources, decreased or unfair comtent with Bankers Trust and J.P. Morgan, the Board believes that petition, conflicts of interests, or unsound banking Company's proposal is consistent with a determination that these activities do not constitute underwriting and dealing in securities for practices." 12 U.S.C. § 1843(c)(8). purposes of the Glass-Steagall Act. Under the framework established in this and prior 8. PNC Financial Corporation, 75 Federal Reserve Bulletin 396 decisions, consummation of this proposal is not likely (1989); Bank of New England Corporation, 74 Federal Reserve Bulletin 700 (1988). See also The Sanwa Bank, Limited, 76 Federal to result in any significant adverse effects, such as Reserve Bulletin 568 (1990). undue concentration of resources, decreased or unfair 9. Applicant has committed that Company will not provide investcompetition, conflicts of interest, or unsound banking ment advice with respect to shares of investment companies that are advised by Applicant or any of its affiliates. Company may broker practices. Based on the foregoing and other facts of shares of investment companies that are advised by banking affiliates record, and subject to the commitments made by of Company but, in accordance with the requirements of the Board's Applicant, the Board has determined that the perfororder in Norwest Corporation, 76 Federal Reserve Bulletin 79 (1990), Company may not broker shares of investment companies that are mance of the proposed activities by Applicant can advised by Company or any nonbank affiliates. reasonably be expected to produce public benefits 10. See J.P. Morgan & Co. Incorporated, 73 Federal Reserve which would outweigh possible adverse effects under Bulletin 810 (1987). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 661 the proper incident to banking standard of section including those in sections 225.4(d) and 225.23(b), and 4(c)(8) of the BHC Act." to the Board's authority to require modification or Accordingly, and for the reasons set forth in the termination of the activities of a bank holding comsection 20 orders, the Board concludes that Appli- pany or any of its subsidiaries as the Board finds cant's proposal to engage through Company in the necessary to assure compliance with, and to prevent requested activities is consistent with the evasion of, the provisions of the BHC Act and the Glass-Steagall Act and is so closely related to banking Board's regulations and orders issued thereunder. as to be a proper incident thereto within the meaning This transaction shall not be consummated later of section 4(c)(8) of the BHC Act, provided Applicant than three months after the effective date of this order, limits Company's activities as provided in the section unless such period is extended for good cause by the 20 orders. Board or by the Federal Reserve Bank of Philadelphia, The application is hereby approved subject to all the pursuant to delegated authority. terms and conditions of those orders and this order. By order of the Board of Governors, effective The Board's approval of this proposal extends only to June 24, 1991. activities conducted within the conditions of those orders and this order, including the Board's reserva- Voting for this action: Chairman Greenspan and Governors tion of authority to establish additional limitations to Angell, Kelley, La Ware, and Mullins. ensure that Company's activities are consistent with safety and soundness, conflict of interest, and other JENNIFER J. JOHNSON relevant considerations under the BHC Act. Under- Associate Secretary of the Board writing and dealing in any manner other than as approved in the section 20 orders is not within the Orders Issued Under Bank Merger Act scope of the Board's approval and is not authorized for Company. Central Fidelity Bank Included among these conditions is that Company Richmond, Virginia may not commence the proposed debt or equity securities underwriting and dealing activities until the Order Approving the Establishment of a Branch Board has determined that Applicant and Company have established policies and procedures to ensure Central Fidelity Bank, Richmond, Virginia ("Central compliance with the requirements of this order, in- Fidelity"), a state member bank, has applied for the cluding computer, audit and accounting systems, in- Board's approval, pursuant to section 9 of the Federal ternal risk management controls and the necessary Reserve Act (12 U.S.C. § 321), to establish a fulloperational and managerial infrastructure. In this re- service branch within the Westminster Canterbury gard, the Board has reviewed the report of the Federal retirement community, 501 V.E.S. Road, Lynchburg, Reserve Bank of Philadelphia relating to the opera- Virginia. tional and managerial infrastructure of Company. On Notice of the application, affording interested perthe basis of this review, the Board has determined that sons an opportunity to submit comments, has been Company has in place the managerial and operational duly published. The time for filing comments has infrastructure and other policies and procedures nec- expired and the Board has considered the application essary to comply with the requirements of this order, and all comments received in light of the factors and that Company may commence underwriting and contained in section 9 of the Federal Reserve Act. dealing in debt or equity securities as permitted by, Central Fidelity is one of two wholly owned banking and subject to, the conditions of this order. subsidiaries of Central Fidelity Banks, Inc., Rich- The Board's determination is subject to all of the mond, Virginia, which operates subsidiary banks in conditions set forth in the Board's Regulation Y, Virginia. Central Fidelity has its main office in Richmond, Virginia, and operates its branches throughout the state. 11. Company may also purchase and sell for its own account In reviewing an application for a deposit facility, futures, forwards, options, and options on futures contracts on including the establishment of a domestic branch or ineligible securities, as incidents to the proposed ineligible securities underwriting and dealing activities. Any activity conducted as a other facility with the ability to accept deposits, the necessary incident to the ineligible securities underwriting and dealing Board is required, under the Community Reinvestactivities must be treated as part of the ineligible securities activity unless Company has received specific approval under section 4(c)(8) ment Act (12 U.S.C. § 2901 et seq.)("CRA"), to of the BHC Act to conduct the activity independently. Until such consider the institution's record of serving the credit approval is obtained, any revenues from the incidental activity must needs of the community, including low- and moderatebe counted as ineligible revenue subject to the 10 percent gross revenue limitation set forth in the Modification Order. income neighborhoods. The CRA requires the federal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

676 Federal Reserve Bulletin • August 1991 financial supervisory agencies to encourage financial of examination of its CRA performance. The Agency institutions to help meet the credit needs of the local CRA Statement provides that, although CRA examicommunities in which they operate, consistent with nation reports do not provide conclusive evidence of the safe and sound operation of such institutions. To an institution's CRA record, these reports will be accomplish this end, the CRA requires the appropriate given great weight in the applications process. In federal supervisory authority to "assess the institu- addition, Central Fidelity has developed and impletion's record of meeting the credit needs of its entire mented a corporate CRA program that contains the community, including low- and moderate-income elements of an effective CRA policy as outlined in the neighborhoods, consistent with the safe and sound Agency CRA Statement. In particular, Central Fideloperation of such institution."1 ity has developed a comprehensive program thit es- In this regard, the Board has received comments tablishes standards that the bank must meet in ascerfiled by the Women's Center for Social Change ("Prot- taining community credit needs, responding to those estant") critical of the CRA performance of Central needs through the development and delivery of prod- Fidelity.2 Protestant contends that Central Fidelity ucts and services, and monitoring and evaluating the discriminated against minorities and low-income com- bank's success in meeting those needs and its responmunities in Lynchburg, Virginia, as a participant in the sibilities under the CRA. Department of Housing and Urban Development's Protestant contends that Central Fidelity's branch ("HUD") Enterprise Zone Loan Pool, a community offices do not adequately serve the needs of low- and block grant program administered by the City of moderate-income and minority communities of the Lynchburg.3 Protestant also alleges that Central Fidel- City of Lynchburg. The bank currently operates ity's branch offices do not adequately serve the needs eleven branches in the City of Lynchburg. While of low- and moderate-income communities of the City Protestant has criticized the number of branches in of Lynchburg. low- and moderate-income and minority neighbor- The Board has carefully reviewed the CRA perfor- hoods, the record reflects that three of Central Fidelmance of Central Fidelity, as well as Protestant's ity's full-service branches are located in low- and comments and Central Fidelity's response to those moderate-income census tracts; two of these branches comments, in light of the CRA, the Board's regula- are located in census tracts where the minority poputions and the Statement of the Federal Financial lation is greater than the percentage of minorities in Supervisory Agencies Regarding the Community Re- the Lynchburg Metropolitan Statistical Area.6 In adinvestment Act ("Agency CRA Statement").4 The dition, five of Central Fidelity's other branch offices, Agency CRA Statement provides guidance regarding while not located in low- and moderate-income census the types of policies and procedures that the supervi- tracts, appear to be reasonably accessible to low- and sory agencies believe financial institutions should have moderate-income residents. Central Fidelity has in in place in order to fulfill their responsibilities under place a formal policy concerning branch closings the CRA on an ongoing basis and the procedures that which is consistent with CRA requirements.7 the supervisory agencies will use during the applica- The record does not indicate that the locations of tion process to review an institution's CRA compli- Central Fidelity's branches serve as an impediment to ance and performance. The Agency CRA Statement the bank's ability to meet the credit needs of low- and also suggests that decisions by agencies to allow moderate-income and minority persons. As a general financial institutions to expand will be based on the matter, Central Fidelity has implemented measures to actual record of performance of the institution.5 Initially, the Board notes that Central Fidelity has received satisfactory ratings in the most recent report 6. In the Lynchburg Metropolitan Statistical Area, minorities represent 21 percent of the population. 7. Pursuant to its branch closing policy, Central Fidelity's Market Research and Cost Accounting Divisions periodically review the 1. 12 U.S.C. § 2903. bank's branch locations and recommend to senior management any 2. The Board also has considered additional comments filed by the branches that require attention due to changes in the profitability, Hamler Development Company, Inc. after the close of the comment market share, market trends or other factors affecting those branches. period, critical of the CRA performance of Central Fidelity. Under the Regional management will review the recommendations and develop Board's rules, the Board may in its discretion take into consideration strategies to correct the identified deficiencies. Such strategies include the substance of such comments. 12 C.F.R. 262.3(e). rearranging staff assignments to reduce expenses, changing the branch 3. Protestant's Director also alleges that Central Fidelity did not hours to accommodate more of the local population, or reworking the comply with proper procedures when repossessing her automobile in facility's configuration to serve the community. If regional manage- 1975. Protestant's complaint has been investigated by the Federal ment determines such strategies are insufficient to correct the perfor- Reserve Bank of Richmond and no evidence of wrongdoing by the mance of the branch, Central Fidelity officials will meet with neighbank has been discovered. borhood representatives to discuss alternatives to keep the branch 4. 54 Federal Register 13,742 (1989). open, or in the event of a decision to close, to discuss measures to 5. Id. minimize the impact of that closing on the local community. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 661 ensure that the bank adequately serves the needs of the Board believes that the record of Central Fidelity residents of low- and moderate-income areas of the in meeting the convenience and needs of the commu- City of Lynchburg. For example, Central Fidelity's nities it serves is consistent with approval of this board of directors has created a Public Policy Com- application. The Board also concludes that the finanmittee, which is charged with monitoring the bank's cial condition of Central Fidelity and its future pros- CRA compliance in the low- and moderate-income pects, the general character of its management, and communities it serves. The bank also has developed a the proposed exercise of corporate powers are consismortgage loan product which offers liberalized loan tent with approval and the purposes of section 9 of the underwriting standards specifically appropriate for Federal Reserve Act. low- and moderate-income borrowers. Central Fideli- Based on all the foregoing and other facts of record, ty's CRA efforts also are enhanced by the activities of the Board has determined that the application should its Community Investment Division, which makes be, and hereby is, approved. housing loans that benefit low- and moderate-income By order of the Board of Governors, effective neighborhoods throughout the state of Virginia. Cen- June 17, 1991. tral Fidelity is actively marketing this program throughout the state, including contacting various of- Voting for this action: Chairman Greenspan and Governors ficials in the Lynchburg community. In addition, Cen- Angell, Kelley, LaWare, and Mullins. tral Fidelity has committed to invest in the Virginia Housing Foundation, Inc., a non-profit foundation JENNIFER J. JOHNSON which promotes investment in low-income housing Associate Secretary of the Board throughout Virginia.8 On the basis of all of the facts of record in this case, time does not indicate that Central Fidelity discriminated against lowand moderate-income communities in administering the program, and also indicates that Central Fidelity fulfilled all requirements outlined 8. Protestant's allegation that Central Fidelity misused funds under by the City of Lynchburg in its bid proposal and loan agreement. HUD the HUD Enterprise Zone Loan Pool Program is not supported by the is reviewing the Lynchburg program and the participation of these record. The record indicates that the City of Lynchburg awarded the financial institutions, including Central Fidelity, in the block grant block grant loan funds to Central Fidelity in 1988, and, with the program. approval of the City, Central Fidelity applied the proceeds of the Protestant's Director alleges that she personally attempted to apply funding to a loan request from a small business seeking to rehabilitate for a loan under the program and was misinformed regarding the a building within the eligible zone. The entire amount of the block availability of funds under the program because she is a minority. grant funds was applied to the loan request. In 1990, Protestant filed a Central Fidelity has stated that the bank was not participating in the complaint with HUD alleging that the City of Lynchburg and several Enterprise Zone Loan Pool Program at the time of the Director's participating financial institutions, including Central Fidelity, engaged application and that, in any event, this loan request did not qualify for in illegal discrimination in administering the HUD-sponsored commu- funding under the program because it requested funds to be used at a nity block grant program. The evidence available to the Board at this location outside of the eligible zone. 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. Bank Holding Acquired Surviving Approval Company Thrift Bank(s) Date First Interstate Bancorp, Commonwealth Federal First Interstate Bank June 21, 1991 Los Angeles, California Savings Association, of Texas, N.A., Houston, Texas Houston, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

678 Federal Reserve Bulletin • August 1991 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) ^ First Interstate Bancorp, First Common Federal Savings June 21, 1991 Los Angeles, California Association, Houston, Texas APPLICATIONS APPROVED UNDER BANK MERGER ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Bank Merger Act Applicant(s) Bank(s) Effective Date United Jersey Bank, The Howard Savings Bank, June 28, 1991 Hackensack, New Jersey Livingston, New Jersey 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 Absarokee Bancorporation, Inc., U-Banc, Incorporated, Minneapolis May 31, 1991 Absarokee, Montana Red Lodge, Montana Adamsville Bancshares, Inc., Citizens State Bank, St. Louis May 30, 1991 Adamsville, Tennessee Parsons, Tennessee Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 661 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date Agri Bancorporation, Agri-Bank Corporation, Chicago June 7, 1991 Webster City, Iowa Webster City, Iowa Big Sandy Holding Company, The First National Bank of Kansas City June 27, 1991 Limon, Colorado Limon, Limon, Colorado Cedar Valley Bankshares, Ltd., Nora Springs Investment Chicago June 26, 1991 Charles City, Iowa Company, Nora Springs, Iowa Central Arkansas Bancshares, One National Bank of Hot St. Louis June 11, 1991 Inc., Springs, Malvern, Arkansas Hot Springs, Arkansas Chadwick Bancshares, Inc., Preston Bancshares, Inc., Chicago June 11, 1991 Chad wick, Illinois Preston, Iowa Citizens Financial Corporation Citizens Financial St. Louis June 7, 1991 Employee Stock Ownership Corporation, Plan, Belzoni, Mississippi Belzoni, Mississippi CNB Bancshares, Inc., JSB Bancorp, St. Louis June 13, 1991 Evansville, Indiana Jasper, Indiana Colony Bankcorp, Inc., Worth Federal Savings and Atlanta June 21, 1991 Fitzgerald, Georgia Loan Association, Sylvester, Georgia Commercial Bancorporation, Commercial State Bank of Atlanta June 7, 1991 Inc., Orlando, Orlando, Florida Orlando, Florida Community First Bankshares, Adams Investment Company, Minneapolis May 24, 1991 Inc., Fergus Falls, Minnesota Fargo, North Dakota Dakota Company, Inc., South Dakota Financial Minneapolis June 12, 1991 Minneapolis, Minnesota Bancorporation, Inc., South Dakota Bancorp, Inc., Minneapolis, Minnesota Minneapolis, Minnesota Decatur Corporation, Citizens Bank of Princeton, Chicago June 6, 1991 Leon, Iowa Princeton, Missouri Desert Southwest Community Nevada Community Bank, San Francisco May 23, 1991 Bancorp, Las Vegas, Nevada Las Vegas, Nevada DNB Financial Corporation, Davis National Bank, Richmond June 4, 1991 Mullins, South Carolina Mullins, South Carolina Four County Bancshares, Inc., Peoples State Bank, Atlanta June 11, 1991 Allentown, Georgia Jefifersonville, Georgia Great Southern Capital Great Southern Capital Atlanta June 17, 1991 Corporation Employee Stock Corporation, Ownership Trust, Quitman, Mississippi Meridian, Mississippi Mansfield Bancorp, Inc., Peoples State Bank of Chicago May 31, 1991 Mansfield, Illinois Mansfield, Mansfield, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

680 Federal Reserve Bulletin • August 1991 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date Meridian Mutual Holding East Boston Savings Bank, Boston June 7, 1991 Company, East Boston, Massachusetts East Boston, Massachusetts Monona Bankshares, Inc., Monona State Bank, Chicago May 30, 1991 Monona, Wisconsin Monona, Wisconsin National Penn Bancshares, Inc., Sellersville Savings Bank, Philadelphia May 28, 1991 Boyertown, Pennsylvania Perkasie, Pennsylvania Northern California Community Mission-Valley Bancorp, San Francisco May 28, 1991 Bancorporation, Inc., Pleasanton, California Alameda, California Otoe County Bancorporation, Otoe County Bank & Trust Kansas City May 31, 1991 Inc., Company, Nebraska City, Nebraska Nebraska City, Nebraska Plato Bancshares, Inc., Bank of Plato, St. Louis June 7, 1991 Plato, Missouri Plato, Missouri Second Mid America Bancorp, FINB Holding Company, Chicago May 23, 1991 Inc., Savanna, Illinois Davenport, Iowa South Dakota Financial Tri-County State Bank, Minneapolis June 12, 1991 Bancorporation, Inc., Chamberlain, South Dakota Minneapolis, Minnesota Farmers and Merchants Bank, Huron, South Dakota Dakota State Bank, Milbank, South Dakota Marquette Bank, N.A., Sioux Falls, South Dakota Southwest Company, Otoe County Bancorporation, Chicago May 31, 1991 Sidney, Iowa Inc., Oakland Financial Services, Inc. Lincoln, Nebraska Oakland, Iowa Star Banc Corporation, Kentucky Bancorporation, Cleveland May 31, 1991 Cincinnati, Ohio Covington, Kentucky Summcorp, The Parker Banking Company, Chicago May 24, 1991 Fort Wayne, Indiana Parker City, Indiana Sun Financial Corporation, Summit Bank, St. Louis June 5, 1991 Earth City, Missouri Holts Summit, Missouri Section 4 Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date Empire Banc Corporation, Great Lakes Bancorp, Chicago May 24, 1991 Traverse City, Michigan Ann Arbor, Michigan Indiana United Bancorp, Regional Federal Bancorp, Chicago June 20, 1991 Greensburg, Indiana Inc., New Albany, Indiana Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 661 Section 4—Continued Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date Fayette County Bancshares, Inc., Fayette County Interim Atlanta May 24, 1991 Peachtree City, Georgia Savings and Loan Association, Peachtree City, Georgia FEO Investments, Inc., Hoskins Insurance Agency, Kansas City May 24, 1991 Hoskins, Nebraska Hoskins, Nebraska First Bank System, Inc., A1 Hektner Insurance, Inc., Minneapolis June 21, 1991 Minneapolis, Minnesota Fargo, North Dakota First Financial Bancorp, Home Federal Bank, A Cleveland May 24, 1991 Monroe, Ohio Federal Savings Bank, Hamilton, Ohio National City Corporation, Consolidated Data-Tech Inc., Cleveland June 19, 1991 Cleveland, Ohio La Palma, California Northern States Financial First Federal Bank, FSB, Chicago May 29, 1991 Corporation, Waukegan, Illinois Waukegan, Illinois Norwest Corporation, National Security Insurance Minneapolis June 4, 1991 Minneapolis , Minnesota Underwriters of Litchfield, Litchfield, Minnesota The Summit Bancorporation, O&T Interim Federal Savings New York June 26, 1991 Chatham, New Jersey Bank, Chatham, New Jersey Union Bank of Switzerland, Chase Investors Management New York June 27, 1991 Zurich, Switzerland Corporation New York, New York, New York APPLICATIONS APPROVED UNDER BANK MERGER ACT .. x r. w \ Reserve Effective AApphcant(s) Bank(s) Bank Date Chemical Bank Michigan, Mutual Savings Bank, F.S.B., Chicago June 14, 1991 Clare, Michigan Bay City, Michigan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

682 Federal Reserve Bulletin • August 1991 PENDING CASES INVOLVING THE BOARD OF Access to Justice Act. The petition for review was GOVERNORS denied on April 12, 1991. This list of pending cases does not include suits May v. Board of Governors, No. 90-1316 (D.C. Cir., against the Federal Reserve Banks in which the Board filed July 27, 1990). Appeal of District Court order of Governors is not named a party. dismissing plaintiffs action under Freedom of Information and Privacy Acts. The Board's motion for summary affirmance was granted on May 16, Fields v. Board of Governors, No. 3:91CV069 (N.D. 1991. Ohio, filed February 5, 1991). Appeal of denial of request for information under the Freedom of Infor- Burke v. Board of Governors, No. 90-9509 (10th mation Act. Circuit, filed February 27, 1990). Petition for review of Board orders assessing civil money penalties and State of Illinois v. Board of Governors, No. 90-3824 issuing orders of prohibition. Oral argument took place (7th Circuit, appeal filed December 19, 1990). Appeal May 7, 1991. of injunction restraining the Board from providing state examination materials in response to a Congres- Kaimowitz v. Board of Governors, No. 90-3067 (11th sional subpoena. On November 30, 1990, the U.S. Cir., filed January 23, 1990). Petition for review of District Court for the Northern District of Illinois Board order dated December 22, 1989, approving issued a preliminary injunction preventing the Board application by First Union Corporation to acquire and the Chicago Reserve Bank from providing Florida National Banks. Petitioner objects to apdocuments relating to the state examination in reproval on Community Reinvestment Act grounds. sponse to the subpoena. The House Committee on Banking, Finance and Urban Affairs has appealed the injunction. Argument in the case took place May 10, Babcock and Brown Holdings, Inc. v. Board of 1991. Governors, No. 89-70518 (9th Cir., filed November 22, 1989). Petition for review of Board determination that a company would control a proposed Citicorp v. Board of Governors, No. 90-4124 (2d insured bank for purposes of the Bank Holding Circuit, filed October 4, 1990). Petition for review of Company Act. Oral argument was held on April 9, Board order requiring Citicorp to terminate certain and on April 17 the Court of Appeals dismissed the insurance activities conducted pursuant to Delaware case as moot. law by an indirect nonbank subsidiary. On June 10, 1991, the Court of Appeals granted the petition and Consumers Union of U.S., Inc. v. Board of Govervacated the Board's order. nors, No. 90-5186 (D.C. Cir., filed June 29, 1990). Appeal of District Court decision upholding amend- Stanley v. Board of Governors, No. 90-3183 (7th ments to Regulation Z implementing the Home Eq- Circuit, filed October 3, 1990). Petition for review of uity Loan Consumer Protection Act. Awaiting deci- Board order imposing civil money penalties on five sion. former bank holding company directors. Oral argument was held May 16, 1991. Synovus Financial Corp. v. Board of Governors, No. 89-1394 (D.C. Cir., filed June 21, 1989). Petition for Sibille v. Federal Reserve Bank of New York and review of Board order permitting relocation of a bank Board of Governors, No. 90-CIV-5898 (S.D. New holding company's national bank subsidiary from York, filed September 12, 1990). Appeal of denial of Alabama to Georgia. Awaiting decision. Freedom of Information Act request. On May 13, 1991, the court heard argument on the plaintiffs mo- MCorp v. Board of Governors, No. 89-2816 (5th tion for a Vaugn index and the Board's motion to Cir., filed May 2, 1989). Appeal of preliminary indismiss. Awaiting decision. junction against the Board enjoining pending and future enforcement actions against a bank holding Kuhns v. Board of Governors, No. 90-1398 (D.C. Cir., company now in bankruptcy. On May 15, 1990, the filed July 30, 1990). Petition for review of Board order Fifth Circuit vacated the district court's order enjoindenying request for attorney's fees pursuant to Equal ing the Board from proceeding with enforcement Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 661 actions based on section 23A of the Federal Reserve WRITTEN AGREEMENTS APPROVED BY FEDERAL Act, but upheld the district court's order enjoining RESERVE BANKS such actions based on the Board's source-of-strength doctrine. 900 F.2d 852 (5th Cir. 1990). On March 4, Community Bank & Trust Company 1991, the Supreme Court granted the parties' cross- Sterling, Virginia petitions for certiorari, Nos. 90-913, 90-914. The Board's brief was filed on April 18, and MCorp's The Federal Reserve Board announced on June 24, brief was filed on June 10, 1991. 1991, the execution of a Written Agreement between the Federal Reserve Bank of Richmond, the Commissioner of Financial Institutions of the Commonwealth MCorp v. Board of Governors, No. CA3-88-2693 of Virginia, Richmond, Virginia, and the Community (N.D. Tex., filed October 10, 1988). Application Bank & Trust Company, Sterling, Virginia. for injunction to set aside temporary cease and desist orders. Stayed pending outcome of South Texas Bancshares, Inc. MCorp v. Board of Governors, 900 F.2d 852 (5th Cir. Beeville, Texas 1990). The Federal Reserve Board announced on June 11, White v. Board of Governors, No. CU-S-88-623- 1991, the execution of a Written Agreement between RDF (D. Nev., filed July 29, 1988). Age discrimina- the Federal Reserve Bank of Dallas, the Banking Comtion complaint. Board's motion to dismiss or for missioner of Texas, Austin, Texas, South Texas Bancsummary judgment was denied on January 3, 1991. shares, Inc., Beeville, Texas, and First State Bank of Awaiting trial date. Mathis, Mathis, Texas. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics CONTENTS WEEKLY REPORTING COMMERCIAL BANKS Assets and liabilities Domestic Financial Statistics A19 All reporting banks 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 I 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 POUCY INSTRUMENTS FEDERAL FINANCE A7 Federal Reserve Bank interest rates A8 Reserve requirements of depository institutions All 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 A11 Maturity distribution of loan and security A31 U.S. government securities dealers—Positions holdings and financing A32 Federal and federally sponsored credit agencies-Debt outstanding MONETARY AND CREDIT AGGREGATES A12 Aggregate reserves of depository institutions SECURITIES MARKETS AND and monetary base CORPORATE FINANCE A13 Money stock, liquid assets, and debt measures A15 Bank debits and deposit turnover A33 New security issues - State and local A16 Loans and securities—All commercial banks governments and corporations A34 Open-end investment companies-Net sales and asset position COMMERCIAL BANKING INSTITUTIONS A34 Corporate profits and their distribution A34 Total nonfarm business expenditures on new A17 Major nondeposit funds plant and equipment A18 Assets and liabilities, last-Wednesday-of-month A35 Domestic finance companies-Assets and series liabilities and business credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 Federal Reserve Bulletin • August 1991 Domestic Financial Statistics—Continued A55 Foreign official assets held at Federal Reserve Banks A56 Foreign branches of U.S. banks—Balance REAL ESTATE sheet data A36 Mortgage markets A58 Selected U.S. liabilities to foreign official A37 Mortgage debt outstanding institutions REPORTED BY BANKS CONSUMER INSTALLMENT CREDIT IN THE UNITED STATES A38 Total outstanding and net change A39 Terms A58 Liabilities to and claims on foreigners A59 Liabilities to foreigners A61 Banks' own claims on foreigners A62 Banks' own and domestic customers' claims on FLOW OF FUNDS foreigners A62 Banks' own claims on unaffiliated foreigners A40 Funds raised in U.S. credit markets A63 Claims on foreign countries—Combined A42 Direct and indirect sources of funds to credit domestic offices and foreign branches markets A43 Summary of credit market debt outstanding A44 Summary of credit market claims, by holder REPORTED BYNONBANKING BUSINESS Domestic Nonfinancial Statistics ENTERPRISES IN THE UNITED STATES A64 Liabilities to unaffiliated foreigners SELECTED MEASURES A65 Claims on unaffiliated foreigners A45 Nonfinancial business activity—Selected measures SECURITIES HOLDINGS AND TRANSACTIONS A46 Labor force, employment, and unemployment A47 Output, capacity, and capacity utilization A66 Foreign transactions in securities A48 Industrial production-Indexes and gross value A67 Marketable U.S. Treasury bonds and A50 Housing and construction notes—Foreign transactions A51 Consumer and producer prices A52 Gross national product and income A53 Personal income and saving INTEREST AND EXCHANGE RATES International Statistics A68 Discount rates of foreign central banks A68 Foreign short-term interest rates SUMMARY STATISTICS A69 Foreign exchange rates A71 Guide to Tabular Presentation, A54 U.S. international transactions-Summary A55 U.S. foreign trade Statistical Releases, and Special A55 U.S. reserve assets Tables 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 1991 1991 MMoonneettaarryy aanndd ccrreeddiitt aaggggrreeggaatteess Q2 Q3 Q4 Ql Jan. Feb. Mar. Apr.' May Reserves of depository institutions2 1 Total .2 -.5 3.9 9.2 8.8 3.5 -1.1 -4.1 16.3 .9 -.5 1.7 4.7 -3.6 12.8 14.7 -.6 16.7 .7 3.8 7.8 9.1 3.8 10.5 -.8 -3.9 14.6 7.9 9.1 9.9 14.5 21.5 16.9 6.0 -1.5 3.4 Concepts of money, liquid assets, and debt 5 Ml 4.2 3.7 3.4 5.9 1.9 14.1 9.5 -1.1 13.8 6 M2 3.9 3.0 2.(K 3.4' 1.2' 8.4r 7.4' 2.8 4.7 7 M3 1.3 1.6 4.C 3.8' 10.4" 2.4' .4 .9 8 L .9 2.0 1.4' 3.5' 4.4 7.9' .8' -8.9 n.a. 9 Debt 7.1' 7.1 5.5' 4.8' 3.6r 6.7' 4.3' 1.7 n.a. Nontransaction components 10 In M2 3.8 2.7 1.5' 2.6r ISf 6.5' 6.7' 4.2 1.7 11 In M3 only6 -9.1 -3.8 -3.5 6.6' 14.5r 18.8' -18.2' -10.1 -15.6 Time and savings deposits Commercial banks 4.1 5.9 5.2 10.2 12.0 10.7 15.4 18.1 14.9 13 MMDAs ^ 9.6 8.2 3.5 6.1 -2.2 17.5 17.8 14.8 18.9 12.7 15.5 11.5 8.9 7.0 8.0 4.4 -7.3 -4.6 -2.9 -2.2 -8.5 12.C 24.6' 21.6r -3.6 -5.7 .3 Thrift institutions 2.2 -3.3 -7.3 -.4 -4.5 9.1 14.1 20.7 18.1 17 MMDAs ^ .4 -7.7 -7.2 -.9 -.9 7.5 18.7 23.9 30.7 -7.4 -11.0 -8.6 -9.1' -8.r -10.9' -14.4' -9.4 -15.2 -28.7 -27.3 -26.3 -31.9 -29.8 -31.5 -34.5 -31.2 -46.4 Money market mutual funds 4.7 10.0 9.8' 18.2r 29.5r 14.6r 17.8' 2.3 3.0 14.8 21.6 30.4 49.9 42.0 84.9 23.3 30.4 4.9 Debt components 22 Federal 9.7 14.4 11.6r 12.2 10.4' 15.2' 5.1' -4.1 n.a. 6.3' 4.8' 3.7' 2.4r 11..55'' 33..99'' 4.1' 33..66 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 • August 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 1991 1991 Mar. Apr. May Apr. 17 Apr. 24 May 1 May 8 May 15 May 22 May 29 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit 285,011 285,272 286,418 284,787 284,199 286,031 284,839 287,157 285,118 286,542 U.S. government securities1, 2 2 Bought outright-system account 238,299 240,832 243,104 240,092 240,451 241,306 240,929 242,872 243,428 243,829 3 Held under repurchase agreements ... 1,019 608 298 617 0 180 0 663 0 477 Federal agency obligationsr 4 Bought outright 6,342 6,314 6,246 6,342 6,302 6,250 6,250 6,250 6,250 6,240 5 Held under repurchase agreements ... 87 21 29 0 0 22 0 28 0 76 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 143 69 60 124 41 57 46 52 44 107 8 Seasonal credit 53 79 151 69 83 101 138 137 156 174 9 Extended credit 51 85 89 79 90 115 123 132 95 22 10 Float 557 541 492 760 464 1,015 603 278 177 326 11 Other Federal Reserve assets 38,459 36,722 35,949 36,704 36,767 36,984 36,750 36,746 34,967 35,290 12 Gold stock 11,058 11,058 11,058 11,058 11,058 11,058 11,058 11,058 11,058 11,057 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 20,546 20,599 20,670 20,597 20,607 20,644 20,654 20,664 20,674 20,684 ABSORBING RESERVE FUNDS 15 Currency in circulation 286,408 287,527 288,789 288,303 287,196 286,435 287,770 288,692 288,623 289,767 16 Treasury cash holdings 616 640 641 640 646 652 656 653 626 628 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 6,406 4,931 5,275 3,780 5,509 5,746 5,222 4,931 5,583 4,644 18 Foreign 247 246 227 247 251 266 250 206 218 244 19 Service-related balances and adjustments 2,849 3,089 3,504 3,292 3,168 3,174 3,157 3,231 3,397 3,160 20 Other 220 239 222 242 232 267 223 216 223 223 21 Other Federal Reserve liabilities and capital 8,087 6,556 7,415 6,543 6,780 7,189 6,980 7,462 7,463 7,640 22 Reserve balances with Federal Reserve Banks3 21,800 23,720 22,091 23,413 22,100 24,022 22,312 23,506 20,734 21,997 End-of-month figures Wednesday figures 1991 1991 Mar. Apr. May Apr. 17 Apr. 24 May 1 May 8 May 15 May 22 May 29 SUPPLYING RESERVE FUNDS 23 Reserve Bank credit 286,706 288,432 291,168 288,492 282,652 291,736 285,133 288,690 285,005 290,722 U.S. government securities1, 2 24 Bought outright-system account 240,965 244,493 248,111 242,925 239,000 242,764 240,918 241,778 243,581 244,293 25 Held under repurchase agreements ... 0 0 0 2,072 0 1,261 0 4,638 0 3,342 Federal agency obligations2^ 26 Bought outright 6,342 6,250 6,213 6,342 6,250 6,250 6,250 6,250 6,250 6,213 27 Held under repurchase agreements ... 0 0 0 0 0 155 0 196 0 534 28 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 29 Adjustment credit 135 55 20 55 32 70 46 228 141 58 30 Seasonal credit 62 105 163 72 93 118 135 140 158 174 31 Extended credit 48 131 23 75 92 110 135 58 101 24 32 Float 2,582 913 457 377 170 4,429 720 369 -334 618 33 Other Federal Reserve assets 36,573 36,484 36,181 36,574 37,015 36,579 36,930 35,032 35,108 35,466 34 Gold stock 11,058 11,058 11,057 11,058 11,058 11,058 11,058 11,058 11,057 11,057 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 20,577 20,617 20,694 20,597 20,607 20,644 20,654 20,664 20,674 20,684 ABSORBING RESERVE FUNDS 37 Currency in circulation 286,685 286,766 290,507 288,087 286,823 287,078 288,444 288,859 288,995 290,666 38 Treasury cash holdings 623 652 629 645 652 656 658 626 628 629 Deposits, other than reserve balances, with Federal Reserve Banks 39 Treasury 10,922 13,682 6,619 3,384 4,411 8,826 4,725 3,835 5,319 3,945 40 Foreign 228 292 1% 196 186 151 290 222 241 266 41 Service-related balances and adjustments 2,827 3,174 3,185 3,292 3,168 3,174 3,157 3,231 3,397 3,160 42 Other 188 276 225 225 208 242 215 240 205 242 43 Other Federal Reserve liabilities and capital 5,670 6,826 8,570 6,512 6,939 6,749 7,079 7,302 7,425 7,575 44 Reserve balances with Federal Reserve Banks3 21,214 18,457 23,008 27,823 21,948 25,581 22,2% 26,115 20,545 25,998 1. Includes securities loaned—fully guaranteed by U.S. government securities 3. Excludes required clearing balances and adjustments to compensate for pledged with Federal Reserve Banks—and excludes any securities sold and float. scheduled to be bought back under matched sale-purchase transactions. NOTE. For amounts of currency and coin held as reserves, see table 1.12. 2. Beginning with the May 1990 Bulletin, this table has been revised to Components may not add to totals because of rounding. correspond with the H.4.1 statistical release. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A5 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Monthly averages9 Reserve classification 1988 1990 1991 Dec. Dec. Feb. Mar. Apr. May 1 Reserve balances with Reserve Banks 37,837 35,436 30,237 33,382 30,237 22,023 19,827 21,734 23,508 22,286 2 Total vault cash3 28,204 29,822 31,777 31,086 31,777 33,220 33,477 30,896 30,558 30,724 3 Applied vault cash , 25,909 27,374 28,884 28,663 28,884 28,969 28,724 26,853 26,793 26,775 4 Surplus vault cash5 2,295 2,448 2,893 2,423 2,893 4,250 4,753 4,043 3,765' 3,949 5 Total reserves6 63,746 62,810 59,120 62,045 59,120 50,992 48,551 48,586 50,301 49,061 6 7 E R x eq c u es ir s ed re s re e s rv e e r v b es a lances at Reserve Banks' i 62 1 , , 6 0 9 4 9 7 61,8 92 8 2 8 57 1 , , 4 6 5 6 6 5 61,0 9 9 4 9 7 57 1 , , 4 6 5 6 6 5 48 2, ,8 1 2 6 4 8 46 1 , , 7 8 4 0 3 9 47 1 , , 4 1 0 7 8 9 49 1 , , 2 03 7 0 1 ^ r 48 1 , , 0 0 3 2 3 8 8 Total borrowings at Reserve Banks 1,716 265 326 230 326 534 252 241 231 303 9 Seasonal borrowings at Reserve Banks .. 130 84 76 162 76 33 37 55 79 151 10 Extended credit at Reserve Banks 1,244 20 23 24 23 27 34 53 86 Biweekly averages of daily figures for weeks ending 1991 Feb. 6 Feb. 20 Mar. 6 Mar. 20 Apr. 3 Apr. 17 May lr May 15 May 29 June 12 11 Reserve balances with Reserve Banks 18,776 20,049 20,228 22,209 21,949 24,257 23,061 22,907 21,363 24,007 12 Total vault cash3 35,759 33,341 32,005 30,286 31,067 30,309 30,709 30,344 31,239 29,791 13 Applied vault cash 30,384 28,638 27,629 26,413 26,989 26,762 26,781 26,532 27,113 26,113 14 Surplus vault cash5 5,375 4,703 4,376 3,873 4,078 3,547 3,928 3,813 4,125 3,678 15 Total reserves6 49,160 48,687 47,857 48,622 48,938 51,019 49,842 49,438 48,477 50,121 16 Required reserves 46,439 46,934 46,637 47,616 47,564 50,218 48,645 48,469 47,358 49,406 17 Excess reserve balances at Reserve Banks 2,721 1,753 1,221 1,007 1,374 801 1,198 970 1,119 714 18 Total borrowings at Reserve Banks 191 179 426 185 212 224 244 314 299 283 19 Seasonal borrowings at Reserve Banks 35 37 41 51 68 70 92 138 165 176 20 Extended credit at Reserve Banks 30 27 50 47 62 76 103 128 59 9 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 • August 1991 1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Banks1 Averages of daily figures, in millions of dollars 1990 1991, week ending Monday2 MMaattuurriittyy aanndd ssoouurrccee Dec. 31 Jan. 7 Jan. 14 Jan. 21 Jan. 28 Feb. 4 Feb.11 Feb. 18 Feb. 25 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 74,416 82,002 78,600 74,840 74,301 81,956 77,369 77,708 74,061 2 For all other maturities 19,020 16,548 16,797 17,810 16,906 16,423 16,373 16,890 15,830 From other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies 3 For one day or under continuing contract 28,065 29,672 30,986 28,746 32,895 33,366 31,641 32,389 30,568 4 For all other maturities 21,031 20,037 20,563 21,015 21,157 20,974 20,923 20,465 20,124 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 8,891 8,718 9,219 9,343 9,645 10,466 8,867 9,251 10,175 6 For all other maturities 17,577 18,874 19,605 21,917 20,821 21,622 21,241 18,651 17,298 All other customers 7 For one day or under continuing contract 27,064 27,549 26,103 24,749 24,779 25,808 25,119 26,218 25,408 8 For all other maturities 13,624 11,629 11,636 11,350 12,119 12,145 11,855 11,635 11,292 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 43,753 49,537 41,777 40,215 44,641 48,386 42,209 42,099 40,092 10 To all other specified customers 15,935 17,786 18,798 20,612 18,073 21,528 19,334 19,820 18,528 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 AAddjjuussttmmeenntt ccrreeddiitt Extended credit2 aanndd FFFeeedddeeerrraaalll RRReeessseeerrrvvveee SSeeaassoonnaall ccrreeddiitt11 First 30 days of borrowing After 30 days of borrowing3 BBBaaannnkkk On Effective Previous On Effective Previous On Effective Previous Effective date 6/28/91 date rate 6/28/91 date rate 6/28/91 date rate Boston 5Vi 4/30/91 6 5W 4/30/91 6.40 6/27/91 6.45 6/13/91 New York 4/30/91 4/30/91 6/27/91 6/13/91 Philadelphia 4/30/91 4/30/91 6/27/91 6/13/91 Cleveland 5/1/91 5/1/91 6/27/91 6/13/91 Richmond 4/30/91 4/30/91 6/27/91 6/13/91 Atlanta 4/30/91 4/30/91 6/27/91 6/13/91 Chicago 4/30/91 4/30/91 6/27/91 6/13/91 St. Louis 5/2/91 5/2/91 6/27/91 6/13/91 Minneapolis 4/30/91 4/30/91 6/27/91 6/13/91 Kansas City 4/30/91 4/30/91 6/27/91 6/13/91 Dallas 4/30/91 4/30/91 6/27/91 6/13/91 San Francisco ... 5V2 4/30/91 6 5Vl 4/30/91 6 6.40 6/27/91 6.45 6/13/91 Range of rates for adjustment credit in recent years4 Range (or F.R. Range (or F.R. Range (or Effective date A le l v l e F l) . — R. Ba o n f k Effective date A le l v l e F l) . — R. Ba of n k Effective date A le l v l e F l) . — R. Banks N.Y. Banks N.Y. Banks In effect Dec. 31, 1977 6 6 1981—May 5 13-14 14 1985—May 20 7W-8 IV) 1978— J A S M J u a e u a l n p y g y . t . . 2 2 2 1 1 1 2 1 9 3 1 0 2 0 6 m I 6 m 7 - - 5 7 8 6 1 - / V 4 i V V i i i m 7 7I m 8 6 6 7 V V V V4 2 2 4 1982—J D A N u u e o ly c g v . . . 2 2 4 2 3 2 0 6 8 i 1 m 1 1 1 3 - 1 1 1 1 1 - - V 2 4 3 1 1 1 4 4 2 V l 1 1 i W 1 1 1 m 2 3 1 4 3 / 2 1986— A J A M u p u l a y g r r . . . 2 2 2 2 1 1 7 1 1 2 4 1 0 5 1 61 m 5 - « l 1 6 V / / V 2 2 i i - - 7 6 e 6 m 1 7 5 5 V W v % i Oct. 2 16 0 8 8 -8 V V i 2 m 1 3 6 \m11 1lo1 w 1987—Sept. 4 5V2-6 6 Nov. 1 81 9 /2- V 9 l W 9mV2 27 10-10V4 10 11 6 6 3 30 10 10 1979— A Ju u ly g . 2 1 0 7 10-1 1 0 0 V 5; 1 W 0 V i O N c o t v . . 2 1 1 2 2 3 9 9 W - 9 9 W - V 1 l 0 9 9 9 V V i i 1988—Aug. 1 9 1 6- 6 6 V V 2 2 ( 6 M V L i Sept. 2 2 1 1 9 0 10 1 V 0 1 W 1 i- l 1 1 1 1 0 1 1 V 5 Dec. 2 1 1 6 4 5 S 8 V 1 m 9 i /2 - 9 - 9 9 9m 1989—Feb. 2 2 4 7 6'/ 7 2 -7 1 7 Oct. 1 8 0 II 1 -1 2 2 1 12 2 17 8 Vi 1990—Dec. 19 6V2 6V2 1984—Apr. 9 iVl-9 9 6-6 Vl 6 1980—Feb. 15 12-13 13 13 9 9m 1991—Feb. 1 6 6 19 13 13 Nov. 21 SV2-9 iVi 4 SVl— 6 5W May 29 12-13 13 26 8V2 Apr. 30 5Vi 5W 30 12 12 Dec. 24 May 2 June 13 11-12 11 In effect June 28, 1991 5Vi 5W 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 • August 1991 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Percent of deposits Depository institution requirements after implementation of the Monetary Control Act TTyyppee ooff ddeeppoossiitt,, aanndd ddeeppoossiitt iinntteerrvvaall22 Percent of deposits Effective date Net transaction accounts3, 4 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 Type of transaction 1988 1990 Oct. Nov. Dec. Jan. Feb. Mar. Apr U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 2 1 G G r r o o s s s s s p a u l r e c s h ases 8,2 5 2 8 3 7 1 12 4 , , 8 2 1 8 8 4 2 7 4 , , 2 7 9 3 1 9 93 0 3 6,65 0 8 2,35 0 0 12 0 0 1,96 0 7 31 0 3 4 3 R Ex ed c e h m an p g t e io ns 24 2 1 , , 2 8 0 7 0 6 23 1 1 2 , , 2 7 1 3 1 0 24 4 1 , , 4 08 0 6 0 19,27 0 1 25,981 0 1 3 6 , , 0 9 0 3 0 9 19 1 , , 7 0 4 0 7 0 21,381 0 18,80 0 8 6 5 Ot G G he r r r o o s s s s s w p s it a u h l r e i c n s h a 1 s y e e s ar 2,176 0 32 0 7 42 0 5 0 0 32 0 5 0 0 10 0 0 70 0 0 8 9 7 M R Ex e a d c t h u em a ri n t p y g t e i s o h n i s f t -2 2 4 3 , , 5 8 8 5 8 4 0 -2 2 5 8 , , 7 8 5 8 4 0 3 8 0 -2 2 7 5 , , 4 6 2 3 4 0 8 1,93 0 0 4 -4 3 , , 3 5 1 3 5 0 1 1,99 0 0 1 -1,32 0 6 -3 2 , , 0 2 4 9 5 2 0 -1,8 4 7 1 7 0 3 1 1 0 1 1 t G G o r r 5 o o s s y s s e p s a a u r l s r e c s h ases 5,4 8 8 0 5 0 1, 4 4 9 3 0 6 2 20 50 0 0 0 0 0 20 0 0 0 0 0 0 2,95 0 0 1 1 2 3 E M x a c t h u a ri n ty g e s hift -1 2 7 2 , , 7 5 2 1 0 5 -2 2 5 3 , , 5 25 3 0 4 -2 2 1 5 , , 7 41 7 0 0 -1,67 0 7 -3 3 , , 2 9 5 1 8 5 -1,991 0 -7 9 7 2 8 9 -1 2 , , 9 5 0 4 9 5 - 1 2 ,8 1 7 3 7 1 1 5 4 5 t G G o r r 1 o o 0 s s s s y s p e a a u l r r e s c s h ases 1,5 1 7 7 9 5 28 2 7 9 10 0 0 0 0 0 0 10 0 0 0 0 35 0 0 5 0 0 1 1 7 6 E M x a c t h u a ri n ty g e s hift -5 1 , , 9 7 4 9 6 7 -2 1 , , 2 9 3 3 1 4 -2,1 7 8 8 6 9 -256 0 12 0 7 0 0 -2 3 1 9 2 7 - 4 2 0 3 0 -2000 1 1 8 9 Ov G G er r r o o 1 s s 0 s s p y sa e u l a r e c r s s h ases 1,39 0 8 28 0 4 0 0 0 0 0 0 20 Maturity shift -188 -1,086 -1,681 -400 -361 21 Exchange 275 600 1,226 400 100 All maturities 2 2 2 2 4 3 G R G e r r o o d s s e s s m p s p a u t l i r e o c s n h s a ses 1 2 8 1 , , , 2 8 5 0 6 6 0 3 2 1 1 1 6 3 3 , , , 6 2 3 1 3 3 7 7 0 25 4 7 , , , 4 4 5 1 9 0 4 1 0 933 0 0 6,983 0 0 2 3 , , 6 0 5 0 0 0 0 1,0 1 0 2 0 0 0 2,417 0 0 4,013 0 0 Matched transactions 25 Gross sales 1,168,484 1,323,480 1,369,052 127,265 116,601 125,844 130,751 127,589 151,096 26 Gross purchases 1,168,142 1,326,542 1,363,434 129,722 114,488 123,442 126,141 127,502 151,412 Repurchase agreements2 27 Gross purchases 152,613 129,518 219,632 19,844 36,457 45,684 36,337 44,688 23,821 28 Gross sales 151,497 132,688 202,551 19,844 34,105 31,022 38,462 44,809 38,589 29 Net change in U.S. government securities 15,872 -10,055 24,886 3,390 7,222 6,608 -7,855 2,209 -10,439 FEDERAL AGENCY OBLIGATIONS Outright transactions 0 0 0 30 Gross purchases 0 0 0 31 Gross sales 32 Redemptions 587 442 183 Repurchase agreements2 33 Gross purchases 57,259 38,835 41,836 5,913 2,774 2,091 4,416 3,546 2,518 34 Gross sales 56,471 40,411 40,461 5,913 2,504 1,021 3,571 4,466 3,784 35 Net change in federal agency obligations . 198 -2,018 1,192 -34 1,070 -920 -1,266 36 Total net change in System Open Market Account 16,070 -12,073 26,078 3,356 7,492 7,678 -7,010 1,290 -11,705 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 DomesticN onfinancial Statistics • August 1991 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month Account 1991 1991 May 1 May 8 May 15 May 22 May 29 Mar. 29 Apr. 30 May 31 Consolidated condition statement ASSETS 1 Gold certificate account 11,058 11,058 11,058 11,057 11,057 11,058 11,058 11,057 2 Special drawing rights certificate account 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 3 642 644 629 609 577 659 643 577 Loans 4 To depository institutions 297 316 426 400 255 244 291 206 5 Other 0 0 0 0 0 0 0 0 6 Acceptances held under repurchase agreements 0 0 0 0 0 0 0 0 Federal agency obligations 7 Bought outright 6,250 6,250 6,250 6,250 6,213 6,342 6,250 6,213 8 Held under repurchase agreements 155 0 1% 0 534 0 0 0 U.S. Treasury securities Bought outright 9 Bills 114,795 112,948 113,808 115,611 116,323 114,245 116,523 119,942 10 Notes 96,707 96,707 96,507 96,507 96,507 95,457 %,707 %,707 11 Bonds 31,263 31,263 31,463 31,463 31,463 31,163 31,263 31,463 12 Total bought outright2 242,764 240,918 241,778 243,581 244,293 240,965 244,493 248,111 13 Held under repurchase agreements 1,261 0 4,638 0 3,342 0 0 0 14 Total U.S. Treasury securities 244,025 240,918 246,416 243,581 247,635 240,965 244,493 248,111 15 Total loans and securities 250,728 247,484 253,288 250,231 254,638 247,551 251,035 254,530 16 Items in process of collection 10,708 5,543 5,771 4,983 7,625 9,381 9,640 5,531 17 Bank premises 906 905 915 915 915 8% 906 915 Other assets 18 Denominated in foreign currencies 29,817 29,867 29,868 29,975 30,002 30,0% 29,816 30,835 19 All other 5,870 6,152 4,005 4,246 4,606 5,647 5,862 4,416 20 Total assets 319,747 311,670 315,551 312,035 319,439 315,305 318,978 317,879 LIABILITIES 21 Federal Reserve notes 267,732 269,091 269,449 269,557 271,188 267,391 226677,,444455 271,019 Deposits 22 To depository institutions 29,861 25,322 29,338 24,655 29,704 24,067 22,081 26,223 23 U.S. Treasury—General account 8,826 4,725 3,835 5,319 3,945 10,922 13,682 6,619 24 Foreign—Official accounts 151 290 222 241 266 228 292 1% 25 Other 242 215 240 205 242 188 276 225 26 Total deposits 39,079 30,551 33,634 30,420 34,156 35,405 36,330 33,263 27 Deferred credit items 6,186 4,949 5,165 4,633 6,519 6,839 8,377 5,028 28 Other liabilities and accrued dividends 2,270 2,266 2,327 2,295 2,373 2,552 2,277 2,614 29 Total liabilities 315,267 306,857 310,575 306,905 314,236 312,187 314,429 311,923 CAPITAL ACCOUNTS 30 Capital paid in 2,513 2,522 2,544 2,547 2,548 2,501 2,513 2,545 31 Surplus 1,822 1,984 2,076 2,148 2,198 751 1,808 2,216 32 Other capital accounts 145 307 356 435 457 -133 228 1,195 33 Total liabilities and capital accounts 319,747 311,670 315,551 312,035 319,439 315,305 318,978 317,879 34 MEMO: Marketable U.S. Treasury securities held in custody for foreign and international accounts 239,499 240,203 244,836 244,420 243,789 245,789 241,334 249,523 Federal Reserve note statement 35 Federal Reserve notes outstanding issued to bank 312,281 313,136 314,438 315,330 315,767 311,042 312,160 315,843 36 LESS: Held by bank 44,549 44,045 44,989 45,773 44,579 43,651 44,716 44,824 37 Federal Reserve notes, net 267,732 269,091 269,449 269,557 271,188 267,391 267,445 271,019 Collateral held against notes net: 38 Gold certificate account 11,058 11,058 11,058 11,057 11,057 11,058 11,058 11,057 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 0 847 0 0 0 0 0 0 41 U.S. Treasury and agency securities 246,656 247,168 248,374 248,482 250,113 246,315 246,369 249,944 42 Total collateral 267,732 269,091 269,449 269,557 271,188 267,391 267,445 271,018 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 1991 May 1 May 8 May 15 May 22 May 29 Mar. 29 Apr. 30 May 31 1 Loans—Total 298 316 426 400 255 173 291 206 2 Within 15 days 214 227 333 383 227 166 254 106 4 3 9 1 1 6 d d a a y y s s t t o o 9 1 0 y e d a a r y s 8 0 4 8 0 9 93 0 1 0 7 29 0 6 0 3 0 8 10 0 0 5 Acceptances—Total 0 0 0 0 0 0 0 0 6 Within 15 days 0 0 0 0 0 0 0 0 7 8 9 1 1 6 d d a a y y s s t t o o 9 1 0 y d e a ar y s 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 9 U.S. Treasury securities—Total 244,025 240,918 246,416 243,581 247,635 240,965 244,493 248,111 10 Within 15 days1 15,297 14,386 11,716 12,327 15,009 6,881 10,648 6,562 11 16 days to 90 days 54,288 55,355 57,163 56,161 57,228 62,204 59,405 65,504 1 1 1 1 2 3 4 5 O O 9 O 1 v v v d e e e r r r a y 5 1 1 s 0 y y t e e o y a a e r r 1 a s r t y s o t e o a 5 r 1 y 0 e y ar e s a rs 7 6 2 1 1 4 4 3 , , , , 3 5 6 7 7 9 7 8 6 9 6 9 6 7 2 1 1 1 4 3 , , , , 3 3 6 7 7 3 7 8 6 4 6 9 6 7 2 1 1 8 4 2 , , , , 9 2 7 5 8 4 8 1 9 8 4 6 6 7 2 1 1 5 4 2 , , , , 9 8 7 5 8 0 8 1 9 5 4 6 6 2 7 1 1 6 4 2 , , , , 9 1 7 5 8 1 1 8 9 0 6 4 6 7 2 1 2 1 4 3 , , , , 3 1 6 6 8 8 3 7 7 4 3 6 6 7 2 1 1 4 4 3 , , , , 3 5 6 7 7 9 8 7 6 9 9 6 7 6 2 1 6 2 4 2 , , , , 2 4 5 7 9 5 8 1 3 3 4 6 16 Federal agency obligations—Total 6,405 6,250 6,250 6,250 6,747 6,342 6,250 6,213 17 Within 15 days1 155 0 338 338 836 275 99 302 18 16 days to 90 days 732 842 564 564 748 653 732 748 19 91 days to 1 year 1,862 1,752 1,692 1,692 1,507 1,808 1,763 1,507 20 Over 1 year to 5 years 2,442 2,442 2,442 2,442 2,458 2,393 2,442 2,458 2 2 1 2 O O v v e e r r 5 1 0 y y ea e r a s r s t o 10 years 1,0 1 2 8 6 8 1,0 1 2 8 6 8 1,0 1 2 8 6 8 1,0 1 2 8 6 8 1,0 1 1 8 0 8 1,0 1 2 8 6 8 1,0 1 2 8 6 8 1,0 1 1 8 0 8 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 • August 1991 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1990 1991 iJt em D 19 e 8 c 7 . D 19 e 8 c 8 . D 19 e 8 c 9 . D 19 e 9 c 0 . Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves' 45.81 47.60 47.73 49.10 47.94 48.24 49.10 49.47 49.61 49.57 49.39r 50.07 2 Nonborrowed reserves4 ^ 45.03 45.88 47.46 48.78 47.53 48.01 48.78 48.93 49.36 49.32 49.16 49.76 3 Nonborrowed reserves plus extended credit 45.52 47.12 47.48 48.80 47.55 48.04 48.80 48.96 49.39 49.38 49.25 49.85 4 Required reserves 44.77 46.55 46.81 47.44 47.10 47.30 47.44 47.30 47.80 48.39 48.36 49.04 5 Monetary base 246.28 263.46 274.17 299.79 295.94 297.55 299.79 305.15 309.44 310.98 310.6C 311.48 ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 Not seasonally adjusted 6 Total reserves7 47.04 49.00 49.18 50.58 47.55 48.42 50.58 50.76 48.55 48.59 50.30 49.06 7 Nonborrowed reserves 46.26 47.29 48.91 50.25 47.14 48.19 50.25 50.22 48.30 48.34 50.07 48.76 8 Nonborrowed reserves plus extended credit 46.75 48.53 48.93 50.28 47.16 48.21 50.28 50.25 48.33 48.40 50.16 48.85 9 Required reserves8 46.00 47.96 48.26 48.91 46.71 47.47 48.91 48.59 46.74 47.41 49.27 48.03 10 Monetary base 249.93 267.46 278.30 304.04 294.43 298.44 304.04 306.03 305.74 308.19 310.86 311.02 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS10 11 Total reserves11 62.14 63.75 62.81 59.12 61.05 62.05 59.12 50.99 48.55 48.59 50.30 49.06 12 Nonborrowed reserves 61.36 62.03 62.54 58.79 60.64 61.82 58.79 50.46 48.30 48.35 50.07 48.76 13 Nonborrowed reserves plus extended credit 61.85 63.27 62.56 58.82 60.66 61.84 58.82 50.48 48.33 48.40 50.16 48.85 14 Required reserves 61.09 62.70 61.89 57.46 60.21 61.10 57.46 48.82 46.74 47.41 49.27 48.03 15 Monetary base 266.06 283.00 292.55 313.70 308.85 312.69 313.70 309.30 308.53 311.04 313.95 314.25 16 Excess reserves 1.05 1.05 .92 1.66 .85 .95 1.66 2.17 1.81 1.18 1.03 1.03 17 Borrowings from the Federal Reserve .78 1.72 .27 .33 .41 .23 .33 .53 .25 .24 .23 .30 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 are equal to break-adjusted Federal Reserve System, Washington, D.C. 20551. required reserves held against transactions deposits. 2. Figures reflect adjustments for discontinuities or "breaks" associated with 9. The break-adjusted monetary base equals (1) break-adjusted total reserves regulatory changes in reserve requirements. (line 6), plus (2) the (unadjusted) currency component of the money stock, plus (3) 3. Seasonally adjusted, break adjusted total reserves equal seasonally adjusted, (for all quarterly reporters on the "Report of Transaction Accounts, Other break-adjusted required reserves (line 4) plus excess reserves (line 16). Deposits and Vault Cash" and for all those weekly reporters whose vault cash 4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally exceeds their required reserves) the break-adjusted difference between current adjusted, break-adjusted total reserves (line 1) less total borrowings of depository vault cash and the amount applied to satisfy current reserve requirements. institutions from the Federal Reserve (line 17). 10. Reflects actual reserve requirements, including those on nondeposit liabil- 5. Extended credit consists of borrowing at the discount window under ities, with no adjustments to eliminate the effects of discontinuities associated the terms and conditions established for the extended credit program to help with changes in reserve requirements. depository institutions deal with sustained liquidity pressures. Because there is 11. Reserve balances with Federal Reserve Banks plus vault cash used to not the same need to repay such borrowing promptly as there is with traditional satisfy reserve requirements. short-term adjustment credit, the money market impact of extended credit is 12. The monetary base, not break-adjusted and not seasonally adjusted, similar to that of nonborrowed reserves. consists of (1) total reserves (line 11), plus (2) required clearing balances and 6. The seasonally adjusted, break-adjusted monetary base consists of (1) adjustments to compensate for float at Federal Reserve Banks, plus (3) the seasonally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally currency component of the money stock, plus (4) (for all quarterly reporters on adjusted currency component of the money stock, plus (3) (for all quarterly the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all reporters on the "Report of Transaction Accounts, Other Deposits and Vault those weekly reporters whose vault cash exceeds their required reserves) the Cash" and for all those weekly reporters whose vault cash exceeds their required difference between current vault cash and the amount applied to satisfy current reserves, the seasonally adjusted, break-adjusted difference between current vault reserve requirements. After the introduction of CRR, currency and vault cash cash and the amount applied to satisfy current reserve requirements. figures are measured over the computation periods ending on Mondays. 7. Break-adjusted total reserves equal break-adjusted required reserves (line 9) 13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14). plus excess reserves (line 16). 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 1991 IItteemm22 D 19 e 8 c 7 . D 19 e 8 c 8 . D 19 e 8 c 9 . D 19 e 9 c 0 . Feb. Mar. Apr/ May Seasonally adjusted 1 Ml 749.7 786.4 793.6 825.4 836.4 843.0 842.2 851.8 2 M2 2,910.1 3,069.9 3.223.1 3,327.6' 3,354.3' 3,375.0' 3,382.9 3,395.8 3 M3 3,677.4 3,919.1 4.055.2 4,111.7r 4,160.4' 4,169.0' 4,170.8 4,173.6 4 L 4.337.0 4,676.0 4,889.9 4,958.8' 5,010 .<r 5,013.5' 4,976.7 n.a. 5 Debt 8.345.1 9,107.6 9,790.4 10,436.r 10,525.9' 10,563.9' 10,578.2 n.a. Ml components 6 Currency3 . 196.8 212.0 222.2 246.4 255.1 256.7 256.6 256.8 7 Travelers checks4 7.0 7.5 7.4 8.4 8.2 8.1 7.9 8.0 8 Demand deposits5 286.5 286.3 278.7 276.9 276.2 277.1 275.8 278.7 9 Other checkable deposits6 259.3 280.7 285.2 293.8 296.9 301.0 302.0 308.3 Nontransactions components 10 In M2 ... .„ 2,160.4 2,283.5 2,429.5 2,502.2' 2,517.9' 2,531.9' 2,540.7 2,544.0 11 In M3 only 767.3 849.3 832.1 784.1 806.0' 794.0' 787.9 777.8 Time and Savings accounts Commercial banks 12 Savings deposits 178.3 192.1 187.7 199.4 203.2 205.8 208.9 211.5 13 Money market deposit accounts , 356.4 350.2 353.0 378.4 383.2 388.9 393.7 399.8 14 Small time deposits®.... 388.0 447.5 531.4 598.1 605.6 607.8 604.1 601.6 15 Large time deposits10' 326.6 368.0 401.9 386.1 401.1 399.9 398.0 398.2 Thrift institutions 16 Savings deposits 233.7 232.3 216.4 211.4 212.2 214.7 218.4 221.8 17 Money market deposit accounts . 168.5 151.2 133.1 127.6 128.3 130.3 132.9 136.3 18 Small time deposits' 529.7 584.3 614.5 566.1 557.2' 550.5' 546.2 539.4 19 Large time deposits 162.6 174.3 161.6 121.0 114.9 111.6 108.7 104.5 Money market mutual funds 20 General purpose and broker-dealer. 221.7 241.1 313.6 345.4' 358.2' 363.5' 364.2 365.1 21 Institution-only 88.9 86.9 101.9 125.7 139.3 142.0 145.6 146.2 Debt components 22 Federal debt 1,957.9 2,114.2 2,268.1 2,534.3r 2,588.6' 2,599.7' 2,590.8 n.a. 23 Nonfederal debt 6,387.2 6,993.4 7,522.3 7,901.8' 7,937.4' 7,964.2' 7,987.3 n.a. Not seasonally adjusted 2 2 2 2 2 7 8 4 5 6 D L M M M e 3 l 2 b t 2 4 8 3 . . , , 3 9 3 6 7 2 2 5 6 9 9 3 6 2 0 . . . . . 1 0 2 8 3 4 9 3 3 , , , , 0 6 9 0 8 9 9 3 8 0 3 1 1 3 4 . . . . . 2 5 8 3 2 4 9 3 4 , , , , 7 0 9 2 8 7 6 0 3 1 5 7 6 7 1 . . . . . 9 4 6 0 9 1 4A 3 0 , , , 1 3 8 4 ,2 4 4 2 93 4 1 3 1. . . . 3 8 6 3 r ' 1 ' .2' 1 3 4 5 0 , , , , 3 1 0 8 4 4 4 2 0 9 3 5 8 0 0 . . . . . 4 1 5 5 8 ' ' ' ' 1 4 3 5 0 , , , , 1 0 3 8 5 6 1 7 3 1 8 5 1 4 8 . . . . . 0 3 6 2 6 ' ' ' ' 1 4 3 4 0 , , , , 9 3 1 5 8 8 9 7 3 5 6 8 9 3 2 . . . . . 4 0 6 9 9 3 4 , , n n 3 1 8 . 7 . 5 4 a a 5 4 1 . . . . . 2 8 7 2 3 3 3 9 1 2 0 C T O D M r u t e l a h r m v e re r e a n l n c c e d o c h r m y s e d 3 p c c e o k h p n a e o e b c n s l t i k e s t s s 4 d 5 eposits6 2 2 1 6 9 9 6 1 8 9 . . . . 5 8 6 3 2 2 2 1 8 9 4 3 8 6 . . . . 8 5 9 9 2 2 28 2 9 6 8 5 1 . . . . 2 3 9 5 2 2 2 4 9 8 9 7 7 9 . . . . 6 0 8 9 2 2 2 5 9 6 2 7 4 8 . . . . 7 9 8 1 2 2 3 5 7 0 7 5 0 1 . . . . 6 8 1 6 2 3 2 5 1 7 6 7 1 7 . . . . 0 5 8 6 2 3 2 5 0 7 7 7 5 1 . . . . 4 8 0 5 3 3 3 4 N I I n n o n M M tr 2 3 a n o . s n ac ly ti 8 o ns components 2,1 7 5 6 6 7 . . 8 3 2,2 8 7 4 9 8 . . 1 2 2,4 8 2 3 4 0 . . 7 4 2,4 78 9 2 7 . . 2 3 ' 2,5 8 2 0 1 3 . . 6 4 ' ' 2,5 7 3 9 9 4 . . 1 1 ' ' 2,5 7 4 8 3 3. . 5 6 2,5 7 3 7 3 9. . 5 6 Time and Savings accounts Commercial banks 35 Savings deposits 176.8 190.6 186.4 197.7 201.5 205.8 209.5 212.0 3 3 3 7 6 8 S M L m a o r a n g l e e l y t t i i m m m e a e r d k d e e e t p p o o d s s e i i p t t s o s 1 ® s 0 i , t . .. a . ccounts 3 3 3 2 8 5 5 7 9 . . . 8 2 0 4 3 3 6 4 5 6 6 3 . . . 8 2 0 4 3 5 0 5 2 0 6 9 . . . 4 5 2 3 5 38 9 8 6 6 1 . . . 1 1 6 6 3 3 0 9 8 6 9 4 . . . 1 7 6 6 3 3 0 9 9 7 1 9 . . . 4 1 4 3 6 3 0 9 9 4 5 4 . . . 2 7 0 6 3 3 0 9 9 1 7 5 . . . 4 8 8 Thrift institutions 39 Savings deposits 231.4 229.9 214.2 209.6 210.4 214.7 219.0 222.3 4 4 4 0 2 1 M L Sm a o r a n g l e e l y t t i i m m m a e e rk d d e e e p t p o o d s s e i i t p t s s o ® s . i t accounts 5 1 1 2 6 6 9 3 8 . . . 5 3 6 5 1 1 8 7 5 3 5 1 . . . 8 2 6 6 1 1 1 3 6 3 3 2 . . . 8 7 6 5 1 1 6 2 2 4 1 8 . . . 1 1 7 5 1 1 5 2 1 7 8 4 . . . 8 5 7 ' 5 1 1 5 1 3 0 1 1 . . . 5 0 1 ' 5 1 1 4 0 3 6 8 3 . . . 1 2 0 5 1 1 3 0 3 9 4 4 . . . 2 4 9 Money market mutual funds 43 General purpose and broker-dealer 221.1 240.7 313.5 345.5' 362.3' 370.C 368.5 360.5 44 Institution-only 89.6 87.6 102.8 127.0 144.0 143.9 144.1 145.2 Repurchase agreements and Eurodollars 45 Overnight 83.2 83.4 77.3 74.0' 70.1' 69.1' 69.1 67.6 46 Term 197.1 227.7 179.8 161.5 159.4' 154.3' 150.7 147.6 Debt components 47 Federal debt 1,955.6 2,111.8 2,265.9 2,532.1 2,590.7' 2,602.8' 2,593.0 n.a. 48 Nonfederal debt 6,373.5 6,981.4 7,509.9 7,891.2' 7,900.1' 7,915.8' 7,940.6 n.a. For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 DomesticN onfinancial Statistics • August 1991 NOTES TO TABLE 1.21 1. Latest monthly and weekly figures are available from the Board's H.6 (508) Debt: Debt of domestic nonfinancial sectors consists of outstanding credit release. Historical data are available from the Money and Reserves Projection market debt of the U.S. government, state and local governments, and private Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve nonfinancial sectors. Private debt consists of corporate bonds, mortgages, con- System, Washington, D.C. 20551. sumer credit (including bank loans), other bank loans, commercial paper, bankers 2. Composition of the money stock measures and debt is as follows: acceptances, and other debt instruments. Data are derived from the Federal Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults Reserve Board's flow of funds accounts. Debt data are based on monthly of depository institutions; (2) travelers checks of nonbank issuers; (3) demand averages. deposits at ail commercial banks other than those due to depository institutions, 3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of the U.S. government, and foreign banks and official institutions less cash items in depository institutions. the process of collection and Federal Reserve float; and (4), other checkable 4. Outstanding amount of U.S. dollar-denominated travelers checks of nondeposits (OCD) consisting of negotiable order of withdrawal (NOW) and auto- bank issuers. Travelers checks issued by depository institutions are included in matic transfer service (ATS) accounts at depository institutions, credit union demand deposits. share draft accounts, and demand deposits at thrift institutions. 5. Demand deposits at commercial banks and foreign-related institutions other M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs) than those due to depository institutions, the U.S. government, and foreign banks issued by all depository institutions and overnight Eurodollars issued to U.S. and official institutions, less cash items in the process of collection and Federal residents by foreign branches of U.S. banks worldwide, money market deposit Reserve float. accounts (MMDAs), savings and small-denomination time deposits (time depos- 6. Consists of NOW and ATS balances at all depository institutions, credit its—including retail RPs—in amounts of less than $100,000), and balances in both union share draft balances, and demand deposits at thrift institutions. taxable and tax-exempt general purpose and broker-dealer money market mutual 7. Sum of overnight RPs and overnight Eurodollars, money market fund funds. Excludes individual retirement accounts (IRA) and Keogh balances at balances (general purpose and broker-dealer), MMDAs, and savings and small depository institutions and money market funds. Also excludes all balances held time deposits. by U.S. commercial banks, money market funds (general purpose and broker- 8. Sum of large time deposits, term RPs, term Eurodollars of U.S. residents, dealer), foreign governments and commercial banks, and the U.S. government. and money market fund balances (institution-only), less a consolidation adjust- M3: M2 plus large-denomination time deposits and term RP liabilities (in ment that represents the estimated amount of overnight RPs and Eurodollars held amounts of $100,000 or more) issued by all depository institutions, term Eurodol- by institution-only money market funds. lars held by U.S. residents at foreign branches of U.S. banks worldwide and at all 9. Small-denomination time deposits—including retail RPs—are those issued banking offices in the United Kingdom and Canada, and balances in both taxable in amounts of less than $100,000. All individual retirement accounts (IRA) and and tax-exempt, institution-only money market mutual funds. Excludes amounts Keogh accounts at commercial banks and thrifts are subtracted from small time held by depository institutions, the U.S. government, money market funds, and deposits. foreign banks and official institutions. Also subtracted is the estimated amount of 10. Large-denomination time deposits are those issued in amounts of $100,000 overnight RPs and Eurodollars held by institution-only money market mutual or more, excluding those booked at international banking facilities. funds. 11. Large-denomination time deposits at commercial banks less those held by L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term money market mutual funds, depository institutions, and foreign banks and Treasury securities, commercial paper and bankers acceptances, net of money 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 1991 BBaannkk ggrroouupp,, oorr ttyyppee ooff ccuussttoommeerr 11998888 11998899 11999900 Oct. Nov. Dec. Jan. Feb. Mar. DEBITS TO Seasonally adjusted 1 De A m l a l n i d n su d r e e p d o s b i a ts n ks 219,795.7 256.150.4 277,916.3 295,490.0 294,468.6 267,479.9 279,437.8 280,494. lr 271,546.1 2 Major New York City banks 115,475.6 129,319.9 131,784.0 136,082.4 140,531.5 130,154.6 138,638.1 138,037.7'" 132.697.5 3 Other banks 104,320.2 126.830.5 146,132.3 159,407.6 153,937.1 137,325.3 140,799.7 142,456.4r 138.848.6 4 ATS-NOW accounts" 2,478.1 2,910.5 3,349.6 3,449.3 3,479.2 3,368.4 3,559.1 3,533.7r 3,245.9 5 Savings deposits' 537.0 547.5 558.8 573.7 565.8 527.2 572.9 551.4r 525.5 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 622.9 735.1 800.6 865.9 857.1 779.5 828.3 817.8r 792.4 7 Major New York City banks 2,897.2 3,421.5 3,804.1 4,280.5 4,320.4 3,949.1 4,259.7 4,125.7r 4,095.8 8 Other banks 333.3 408.3 467.7 515.1 494.9 442.7 461.9 460.2' 447.5 9 ATS-NOW accounts* 13.2 15.2 16.5 16.8 16.8 16.2 17.0 16.7' 15.1 10 Savings deposits5 2.9 3.0 2.9 2.9 2.9 2.7 2.9 2.7' 2.6 Not seasonally adjusted Demand deposits 11 All insured banks 219,790.4 256,133.2 277,400.0 298,947.2 277,536.6 275.664.8 283,545.5 259,372.9 278,280.4 12 Major New York City banks 115,460.7 129,400.1 131,784.7 142,664.0 133,220.6 133.491.9 136,578.8 127,287.3 134,974.7 13 Other banks 104,329.7 126,733.0 145,615.3 156,283.2 144,316.0 142,172.9 146,966.7 132,085.5 143,305.7 14 ATS-NOW accounts* 2,477.3 2,910.7 3,342.2 3,462.0 3,259.5 3,430.2 3,923.1 3,237.8 3,310.7 15 MMDA 2,342.7 2,677.1 2,923.8 3,095.5 2,805.0 2,938.6 3,106.8 2,512.7 2,771.6 16 Savings deposits 536.3 546.9 557.9 616.3 505.1 530.1 589.2 494.9 524.5 DEPOSIT TURNOVER Demand deposits3 17 All insured banks 622.8 735.4 799.6 870.9 800.0 765.8 820.3 778.7 835.8 18 Major New York City banks 2,896.7 3,426.2 3,810.0 4,376.5 4,067.4 3,760.0 3,993.4 3,899.0 4,378.5 19 Other banks 333.2 408.0 466.3 503.1 459.3 438.2 471.9 439.7 474.3 20 ATS-NOW accounts* 13.2 15.2 16.4 17.1 15.8 16.2 18.4 15.3 15.3 21 MMDA6 6.6 7.9 8.0 8.3 7.4 7.8 8.2 6.6 7.1 22 Savings deposits3 2.9 2.9 2.9 3.1 2.6 2.7 3.0 2.5 2.6 1. Historical tables containing revised data for earlier periods may be obtained states and political subdivisions. from the Banking and Money Market Statistics Section, Division of Monetary 4. Accounts authorized for negotiable orders of withdrawal (NOW) and ac- Affairs, Board of Governors of the Federal Reserve System, Washington, D.C. counts authorized for automatic transfer to demand deposits (ATS). ATS data are 20551. available beginning December 1978. These data also appear on the Board's G.6 (406) release. For address, see inside 5. Excludes MMDA, ATS and NOW accounts. front cover. 6. Money market deposit accounts. 2. Annual averages of monthly figures. 3. Represents accounts of individuals, partnerships, and corporations and of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Nonfinancial Statistics • August 1991 1.23 LOANS AND SECURITIES All Commercial Banks Billions of dollars; averages of Wednesday figures 1990 1991 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Seasonally adjusted 1 Total loans and securities1 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 2,750.9 2,751.6 2,750.0 2 U.S. government securities 438.4 442.8 445.7 450.1 453.1 454.0 454.2 454.1 458.0 471.4 479.2 484.9 3 Other securities 177.5 177.3 178.8 178.8 177.8 175.9 175.6 177.7 177.6 177.6 175.7 174.0 4 Total loans and leases' 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 2,102.0 2,096.7 2,091.1 5 Commercial and industrial ..... 645.3 644.4 645.1 644.7 643.7 646.5 648.1 644.3 643.9 646.0 640.0 633.2 6 Bankers acceptances held2... 7.8 7.6 7.4 7.5 7.3 7.4 7.5 7.7 6.9 6.7 6.6 6.7 7 Other commercial and industrial 637.4 636.7 637.7 637.1 636.4 639.1 640.5 636.6 637.1 639.4 633.4 626.5 8 U.S. addressees3 633.2 632.5 633.4 632.6 631.7 634.0 635.3 631.1 631.5 633.7 627.9 620.7 9 Non-U.S. addressees3 4.3 4.3 4.3 4.5 4.7 5.1 5.3 5.5 5.5 5.7 5.5 5.8 10 Real estate 805.9 814.5 818.0 822.5 827.7 832.0 836.5 837.3 842.6 846.3 850.7 854.7 11 Individual 377.6 376.4 378.2 378.6 379.7 378.7 378.9 375.9 377.7 375.5 374.1 373.5 12 Security 35.0 38.7 44.6 41.3 40.5 39.6 40.6 43.1 43.2 38.8 39.8' 39.8 13 Nonbank financial institutions 34.4 34.7 35.0 35.2 34.8 34.6 34.7 34.2 35.3 36.1 35.2' 36.1 14 Agricultural 31.1 31.3 31.5 31.8 32.2 32.5 33.0 33.5 33.5 34.0 33.9 3333..66 15 State and political subdivisions 37.3 36.4 35.8 35.2 35.1 34.8 34.3 33.2' 33.1' 32.7' 32.2' 31.8 16 Foreign banks 7.4 7.0 7.9 8.1 9.0 8.2 7.4 6.5 6.8 7.4' 6.¥ 6.4 17 Foreign official institutions 3.2 3.2 3.2 3.3 3.2 3.2 3.2 3.0 3.1 3.2 3.0 3.0 18 Lease financing receivables 32.4 32.6 32.7 32.8 33.3 32.9 32.7 32.4 32.8 33.0 32.7 32.7 19 All other loans 44.5 43.6 48.2 45.5 43.6 43.6 44.6 46.C 47.5' 48.9' 48.2 46.4 Not seasonally adjusted 20 Total loans and securities' 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 2,748.3 2,751.3 2,749.2 21 U.S. government securities 437.1 439.9 444.0 448.2 450.8 454.1 451.5 455.8 463.9 475.8 480.5 485.1 22 Other securities 177.5 176.4 179.1 179.0 178.0 176.6 176.3 177.9 177.3 176.9 175.1 173.8 23 Total loans and leases' 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 2,095.7 2,095.7 2,090.2 24 Commercial and industrial ..... 647.7 644.6 643.5 640.9 641.2 644.5 648.0 641.1 643.0 648.3 644.7 637.1 25 Bankers acceptances held ... 8.0 7.3 7.2 7.5 7.4 7.6 7.7 7.6 7.0 6.6 6.5 6.6 26 Other commercial and industrial 639.7 637.3 636.3 633.4 633.8 636.9 640.3 633.4 636.1 641.6 638.2 630.5 27 U.S. addressees3 635.5 632.9 631.8 628.8 629.1 631.9 635.1 628.2 630.6 636.2 632.3 624.6 28 Non-U.S. addressees3 4.3 4.4 4.5 4.6 4.7 5.0 5.2 5.3 5.5 5.4 5.9 5.9 29 Real estate 806.0 814.9 819.9 824.2 830.3 834.0 837.9 837.1 839.5 842.6 848.1 853.8 30 Individual 375.6 374.1 377.4 380.4 380.6 379.8 383.8 380.1 377.1 372.8 371.5 371.8 31 Security 37.1 38.6 43.9 40.3 39.5 38.5 40.0 40.9 44.7 40.1 41.3' 39.0 32 Nonbank financial institutions 34.5 34.6 35.0 34.9 34.7 35.0 36.1 34.7 34.9 35.4 34.9 35.7 33 Agricultural 31.4 32.1 32.5 32.9 33.1 32.9 32.9 32.8 32.5 32.6 32.8 33.1 34 State and political subdivisions 37.2 36.2 35.7 35.2 35.1 34.7 34.0 33.8' 33.2' 32.7' 32.1' 31.8 35 Foreign banks 7.5 7.1 8.0 8.2 9.3 8.4 7.6 6.5 6.7 7.0' 6.7' 6.4 36 Foreign official institutions 3.2 3.2 3.2 3.3 3.2 3.2 3.2 3.0 3.1 3.2 3.0 3.0 37 Lease financing receivables 32.2 32.4 32.6 32.8 33.3 33.1 32.8 32.8 32.9 32.9 32.7 32.6 38 All other loans 43.9 43.3 45.4 46.8 46.3 45.3 46.5 44.3' 48.3' 48.1' 47^ 46.1 1. Excludes loans to commercial banks in the United States. 3. United States includes the 50 states and the District of Columbia. 2. Includes nonfinancial commercial paper held. 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 1991 Source June July Aug. Sept. Oct. Nov. Dec.' Jan.' Feb. Mar.' Apr.' May Seasonally adjusted 1 Total nondeposit funds — 272.3 281.1 283.8 283.0 291.8 292.4 287.9 277.1 265.0' 264.0 262.6 258.0 2 Net balances due to related foreign offices3 — 17.2 19.1 19.0 21.5 29.9 30.1 34.6 33.5 24.8 30.1 30.7 26.0 3 Borrowings from other than commercial banks in United States4 255.1 262.0 264.8 261.5 261.9' 262.2' 253.2 243.6 240.2' 233.8 231.9 232.0 4 Domestically chartered banks 196.8 201.6 202.2 198.8 196.9 195.0' 187.1 182.2 177.1' 171.5 170.7 168.8 5 Foreign-related banks 58.3 60.4 62.6 62.7 65.0 67.3 66.2 61.5 63.1 62.3 61.2 63.2 Not seasonally adjusted 6 Total nondeposit ftinds — 275.1 277.2 282.5 278.6 288.7 293.5' 282.3 272.5 268.1' 269.2 263.3 265.9 7 Net balances due to related foreign offices — 17.4 16.6 18.5 21.5 29.6 30.8 37.2 33.1 24.8' 29.6 28.8 28.5 8 Domestically chartered banks -6.1 -5.8 -3.4 -4.2 -1.0 .6 -4.1 -15.2 -15.2 -6.0 -3.5 -.7 9 Foreign-related banks 23.5 22.4 21.9 25.8 30.6 30.2 41.3 48.4 40.0 35.6 32.4 29.2 10 Borrowings from other than commercial banks in United States4 257.7 260.6 264.0 257.0 259.2 262.7' 245.1 239.4 243.3' 239.6 234.5 237.4 11 Domestically chartered banks 197.7 199.1 201.7 195.6 195.0 197.6 182.8 177.7 179.4' 175.9 171.4 173.5 12 Federal funds and security RP borrowings5 194.6 196.2 198.1 191.6 191.7 194.7' 180.0 174.4 176.6' 172.6 168.6 170.7 13 Other6 3.2 2.9 3.6 4.0 3.2 2.9 2.8 3.2 2.8 3.2 2.9 2.8 14 Foreign-related banks6 60.0 61.5 62.3 61.5 64.2 65.1 62.3 61.7 63.9 63.7 63.0 63.9 MEMO Gross large time deposits7 15 Seasonally adjusted 451.5 451.9 449.2 443.6 438.0 435.2 431.8 441.0 450.6 450.9 450.9 452.1 16 Not seasonally adjusted 451.0 450.5 450.1 445.4 440.4 437.8 431.8 439.3 449.1 450.5 448.6 451.7 U.S. Treasury demand balances at commercial banks8 17 Seasonally adjusted 20.6 15.0 32.7 26.0 22.3 25.2 24.4 25.7 33.4 33.8 21.7 15.1 18 Not seasonally adjusted 20.9 15.2 23.5 31.0 20.9 19.2 23.0 29.4 39.3 28.4 20.4 19.8 1. Commercial banks are those in the 50 states and the District of Columbia romissory note or due bill, given for the purpose of borrowing money for the with national or state charters plus agencies and branches of foreign banks, New anking business. This includes borrowings from Federal Reserve Banks and York investment companies majority owned by foreign banks, and Edge Act from foreign banks, term federal funds, loan RPs, and sales of participations in corporations owned by domestically chartered and foreign banks. pooled loans. These data also appear in the Board's G.10 (411) release. For address, see 5. Based on daily average data reported weekly by approximately 120 large inside front cover. banks and quarterly or annual data reported by other banks. 2. Includes federal funds, RPs, and other borrowing from nonbanks and net 6. Figures are partly daily averages and partly averages of Wednesday data. balances due to related foreign offices. 7. Time deposits in denominations of $100,000 or more. Estimated averages of 3. Reflects net positions of U.S. chartered banks, Edge Act corporations, and daily data. U.S. branches and agencies of foreign banks with related foreign offices plus net 8. U.S. Treasury demand deposits and Treasury tax-and-loan notes at compositions with own IBFs. mercial banks. Averages of daily data. 4. Other borrowings are borrowings through any instrument, such as a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 DomesticN onfinancial Statistics • August 1991 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series1 Billions of dollars 1990 1991 AAccccoouunntt July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May ALL COMMERCIAL BANKING INSTITUTIONS2 1 Loans and securities 2,878.8 2,896.8 2,887.1 2,931.3 2,925.1 2,936.9 2,908.7 2,924.9 2,910.9 2,907.1 2,921.5 ? Investment securities 588.3 597.2 601.7 604.9 603.3 605.6 612.8 614.0 628.3 628.5 634.1 3 U.S. government securities 421.7 429.1 434.5 438.0 437.6 439.6 447.6 449.5 463.3 465.1 471.8 4 Other 166.6 168.0 167.2 166.8 165.7 166.0 165.2 164.5 165.1 163.4 162.2 5 Trading account assets 27.7 29.3 21.4 27.4 25.0 22.0 24.1 26.9 23.5 24.9 24.3 6 Total loans 2,262.8 2,270.4 2,264.0 2,299.0 2,296.9 2,309.3 2,271.8 2,283.9 2,259.1 2,253.6 2,263.2 7 Interbank loans 204.8 200.1 191.0 207.9 207.0 204.0 193.3 185.0 171.8 160.7 172.5 8 Loans excluding interbank 2,057.9 2,070.3 2,073.0 2,091.2 2,089.8 2,105.3 2,078.6 2,099.0 2,087.3 2,092.9 2,090.6 9 Commercial and industrial 641.5 639.7 639.7 643.4 644.4 650.8 637.2 645.1 648.5 643.6 635.1 10 Real estate 816.0 820.1 825.0 831.5 833.7 838.3 836.9 840.1 842.5 849.0 855.2 11 Individual 374.8 379.4 381.2 380.8 380.5 384.7 378.6 376.4 371.5 372.0 370.7 12 All other 225.6 231.1 227.1 235.5 231.2 231.5 225.9 237.4 224.8 228.3 229.6 13 Total cash assets 210.7 207.7 213.7 220.8 216.7 217.9 199.2 204.5 206.1 201.0 224.3 14 Reserves with Federal Reserve Banks. 29.8 30.0 33.6 29.7 33.0 23.4 16.5 18.1 25.0 23.1 26.2 15 Cash in vault 28.8 30.3 29.3 29.4 32.8 32.0 30.4 29.8 28.9 29.1 31.1 16 Cash items in process of collection ... 79.6 77.5 81.1 85.4 78.4 86.0 74.7 79.9 76.9 74.3 87.2 17 Demand balances at U.S. depository institutions 27.3 27.3 27.0 28.5 28.4 29.6 28.1 27.7 27.6 26.4 30.8 18 Other cash assets 45.2 42.5 42.8 47.8 44.2 46.8 49.6 49.0 47.7 48.1 49.0 19 Other assets 205.3 220.8 226.6 230.1 226.6 245.1 249.9 259.6 263.1 260.4 264.4 20 Total assets/total liabilities and capital 3,294.8 3,325.3 3,327.4 3,382.2 3,368.5 3,399.9 3,357.8 3,388.9 3,380.1 3,368.5 3,410.3 21 Deposits 2,290.9 2,296.5 2,300.1 2,332.0 2,319.9 2,363.4 2,334.6 2,365.0 2,382.5 2,381.9 2,413.3 22 Transaction deposits 590.1 589.1 595.3 612.1 598.1 637.1 587.9 594.1 602.8 601.3 617.6 23 Savings deposits 561.3 565.6 563.5 570.5 573.1 573.3 573.9 583.5 594.1 595.4 606.2 24 Time deposits 1,139.5 1,141.8 1,141.3 1,149.4 1,148.8 1,152.9 1,172.8 1,187.3 1,185.6 1,185.3 1,189.5 25 Borrowings 562.1 579.9 570.9 591.0 570.6 548.7 529.8 515.4 492.3 494.6 499.8 26 Other liabilities 220.5 226.2 233.1 236.0 255.3 264.4 268.8 282.3 278.2 263.9 267.6 27 Residual (assets less liabilities) 221.2 222.8 223.4 223.3 222.7 223.5 224.6 226.2 227.0 228.1 229.6 MEMO 28 U.S. government securities (including trading account) 440.4 446.3 445.1 454.2 451.9 451.1 459.4 463.7 475.9 479.0 485.0 29 Other securities (including trading account) 175.6 180.2 178.0 178.1 176.4 176.5 177.5 177.2 176.0 174.5 173.4 DOMESTICALLY CHARTERED COMMERCIAL BANKS3 30 Loans and securities 2,614.4 2,631.8 2,620.5 2,658.4 2,645.1 2,654.2 2,628.0 2,642.3 2,635.6 2,628.9 2,637.8 31 Investment securities 557.3 566.1 569.0 571.5 569.8 570.5 575.3 577.4 588.6 592.3 595.7 32 U.S. government securities 406.5 414.1 417.9 420.9 420.8 421.7 426.5 429.3 440.2 445.5 449.2 33 Other 150.8 152.0 151.2 150.6 149.1 148.8 148.7 148.2 148.5 146.8 146.5 34 Trading account assets 27.7 29.3 21.4 27.4 25.0 22.0 24.1 26.9 23.5 24.9 24.3 35 Total loans 2,029.4 2,036.4 2,030.0 2.059.5 2,050.3 2,061.7 2,028.6 2,038.0 2,023.5 2,011.7 2,017.8 36 Interbank loans 153.7 153.7 146.0 164.0 157.4 160.0 151.7 150.9 148.3 134.2 144.5 37 Loans excluding interbank 1,875.7 1,882.6 1,884.0 1,895.5 1,892.9 1,901.7 1,876:9 1,887.0 1,875.2 1,877.5 1,873.3 38 Commercial and industrial 517.3 514.0 513.2 515.4 513.4 512.7 504.2 508.4 506.3 502.4 495.0 39 Real estate 776.7 779.5 784.0 789.8 791.6 796.4 794.0 797.1 799.7 804.7 808.7 40 Individual 374.8 379.4 381.2 380.8 380.5 384.7 378.6 376.4 371.5 372.0 370.7 41 All other 206.9 209.8 205.7 209.5 207.4 207.9 200.2 205.1 197.7 198.4 198.8 42 Total cash assets 184.7 181.7 187.0 189.3 187.7 188.3 166.6 172.7 177.0 171.6 193.6 43 Reserves with Federal Reserve Banks. 28.9 28.0 32.1 28.5 31.5 23.0 15.3 17.0 24.0 21.9 25.8 44 Cash in vault 28.8 30.3 29.2 29.4 32.8 32.0 30.3 29.8 28.8 29.1 31.1 45 Cash items in process of collection ... 78.1 75.9 79.0 83.6 76.4 83.9 72.9 78.2 74.9 72.6 85.5 46 Demand balances at U.S. depository institutions 25.6 25.0 25.1 26.6 26.2 27.6 26.2 25.8 25.8 24.8 28.8 47 Other cash assets 23.4 22.5 21.5 21.2 20.9 21.8 22.0 21.9 23.4 23.2 22.4 48 Other assets 139.1 145.6 152.3 153.6 155.0 167.8 166.9 171.3 167.9 161.9 162.3 49 Total assets/liabilities and capital 2,938.2 2,959.1 2,959.7 3,001.3 2,987.8 3,010.3 2,961.4 2,986.3 2,980.4 2,962.4 2,993.7 50 Deposits 2,209.2 2,214.9 2,220.1 2,253.8 2,243.3 2,283.5 2,236.2 2,255.2 2,266.2 2,258.8 2,280.8 51 Transaction deposits 580.2 578.8 584.4 601.5 587.7 626.1 577.4 583.8 592.2 591.4 607.5 52 Savings deposits 558.3 562.6 560.4 567.4 569.8 570.0 570.6 580.2 590.6 591.9 602.5 53 Time deposits 1,070.7 1,073.5 1,075.3 1,085.0 1,085.8 1,087.4 1,088.1 1,091.2 1,083.4 1,075.6 1,070.8 54 Borrowings 396.0 404.3 395.8 400.4 394.1 375.6 380.1 371.8 354.9 346.5 355.1 55 Other liabilities 115.3 120.7 124.1 127.5 131.5 131.4 124.2 136.8 136.0 132.6 131.9 56 Residual (assets less liabilities) 217.7 219.2 219.7 219.6 219.0 219.8 220.9 222.6 223.4 224.5 226.0 MEMO 57 Real estate loans, revolving 56.3 57.7 58.6 60.6 61.1 61.7 62.9 63.3 63.6 64.4 65.7 58 Real estate loans, other 720.4 721.7 725.4 729.2 730.5 734.7 731.1 733.8 736.1 740.3 743.0 1. Back data are available from the Banking and Monetary Statistics section, the last Wednesday of the month based on a weekly reporting sample of Board of Governors of the Federal Reserve System, Washington, D.C., 20551. foreign-related institutions and quarter-end condition reports. These data also appear in the Board's weekly H.8 (510) release. 2. Commercial banking institutions include insured domestically chartered Figures are partly estimated. They include all bank-premises subsidiaries and commercial banks, branches and agencies of foreign banks, Edge Act and other significant majority-owned domestic subsidiaries. Loan and securities data Agreement corporations, and New York State foreign investment corporations. for domestically chartered commercial banks are estimates for the last Wednes- 3. Insured domestically chartered commercial banks include all member banks day of the month based on a sample of weekly reporting banks and quarter-end and insured nonmember banks. condition report data. Data for other banking institutions are estimates made for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Commercial Banks A19 1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS Millions of dollars, Wednesday figures Apr. 3' Apr. 10 Apr. 17' Apr. 24 May 1 May 8 May 15 May 22 ASSETS 1 Cash and balances due from depository institutions . 106,445 99,294' 108,173 97,612' 125,621 97,575 113,446 94,631 2 U.S. Treasury and government securities 195,895 194,450 195,635 191,835 194,691 193,915 196,201 193,597 3 Trading account 17,101 15,974 16,103 13,906 15,432 14,577 16,810 14,692 4 Investment account 178,793 178,476 179,532 177,928 179,259 179,338 179,391 178,905 5 Mortgage-backed securities 84,414 84,359' 85,171 83,315' 83,309 83,299 82,505 81,747 All other maturing in 6 One year or less 19,546 19,359 19,240 19,058 18,929 19,027 18,649 19,464 7 Over one through five years 41,151 41,001 41,401 41,718 42.517 43,706 45,139 44,426 8 Over five years 33,682 33,758' 33,721 33,837' 34,505 33,306 33,098 33,268 9 Other securities 59,217 58,896 58,516 58,589 58,580 58,547 57,844 57,663 10 Trading account 1,353 1,221 1,132 1,392 1,365 1,241 1,346 1,360 11 Investment account 57,864 57,674 57,385 57,197 57,215 57,306 56,498 56,303 12 State and political subdivisions, by maturity ... 28,009 27,869' 27,585 27,418 27,229 27,242 27,187 27,091 13 One year or less 3,781 3,738 3,685 3,660 3,711 3,703 3,680 3,656 14 Over one year 24,228 24,131' 23,900 23,757 23.518 23,539 23,508 23,435 15 Other bonds, corporate stocks, and securities .. 29,855 29,805' 29,800 29,779 29,986 30,064 29,310 29,212 16 Other trading account assets 10,997 9,631 9,720 9,717 9,456 9,506 10,225 9,542 17 Federal funds sold2 79,788 79,521 85,332 68,905 86,089 68,178 78,327 63,099 18 To commercial banks in the U.S 59,095 53,921 59,427 45,186 57,489 47,446 55,417 43,621 19 To nonbank brokers and dealers 17,250 21,772 21,895 20,548 25,298 17,906 19,689 17,329 20 To others3 3,443 3,828 4,010 3,172 3,303 2,826 3,221 2,149 21 Other loans and leases, gross 1,049,326 1,044,567' 1,048,747 1,044,641' 1,051,794 1,045,695 1,045,722 1,041,095 22 Commercial and industrial 319,905 316,932' 318,300 316,372' 317,840 315,839 314,425 313,289 23 Bankers' acceptances and commercial paper 1,697 1,671 1,736 1,601 1,639 1,668 1,621 1,556 24 Mother 318,207 315,262' 316,565 314,772' 316,201 314,172 312,804 311,733 25 U.S. addressees 316,820 313,913' 315,249 313,329' 314,828 312,791 311,384 310,323 26 Non-U.S. addressees 1,387 1,349 1,316 1,443 1,373 1,381 1,420 1,410 27 Real estate loans 402,852 403,534' 404,152 404,24C 404,529 404,806 404,480 404,0% 28 Revolving, home equity 36,445 36,516 36,738 36,953 37,036 37,102 37,210 37,204 29 All other 366,407 367,017' 367,414 367,287' 367,493 367,703 367,270 366,892 30 To individuals for personal expenditures 190,292 190,318' 190,714 190,623' 190,833 190,411 190,456 189,990 31 To depository and financial institutions 49,144 47,811 46,309 45,489' 47,140 47,037 47,776 46,211 32 Commercial banks in the United States 22,387 21,861' 21,401 21,122' 21,137 21,622 22,235 21,727 33 Banks in foreign countries 3,500 2,922 2,352 2,435' 3,020 2,342 2,454 2,122 34 Nonbank depository and other financial institutions 23,257 23,028' 22,556 21,933 22,983 23,073 23,088 22,362 35 For purchasing and carrying securities 11,848 11,415' 13,001 12,995' 14,462 12,613 12,703 12,708 36 To finance agricultural production 5,754 5,825' 5,916 5,876' 5,967 5,985 6,055 6,079 37 To states and political subdivisions 20,115 20,021' 19,913 19,912 19,905 19,711 19,713 19,631 38 To foreign governments and official institutions .. 1,182 1,182 1,152 1,187 1,146 1,193 1,166 1,120 39 All other loans4 21,000 20,381' 22,182 20,862' 22,898 21,081 21,970 21,019 40 Lease financing receivables 27,234 27,149 27,106 27,085' 27,075 27,017 26,978 26,953 41 LESS: Unearned income 4,079 4,086 4,107 4,101' 4,039 4,038 4,033 4,038 42 Loan and lease reserve 37,638 37,856 37,897 37,892' 38,294 38,124 37,520 37,349 43 Other loans and leases, net 1,007,610 1,002,625' 1,006,743 1,002,648' 1,009,462 1,003,533 1,004,169 999,709 44 Other assets 162,309 159,322' 157,864 153,296' 156,758 154,538 154,295 151,149 45 Total assets 1,622,262 1,603,738' 1,621,983 1,582,604' 1,640,659 1,585,792 1,614,506 1,569,389 Footnotes appear on the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • August 1991 1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS—Continued Millions of dollars, Wednesday figures 1991 AAccccoouunntt Apr. 3' Apr. 10 Apr. 17' Apr. 24 May 1 May 8 May 15 May 22 May 29 LIABILITIES 46 Deposits 1,120,375 1,116,136r 1,123,117 1,094,514' 1,129,448 1,098,115 1,121,993 1,089,457 1,104,702 47 Demand deposits 228,523 223,406' 232,125 214,356' 249,036 215,815 238,592 211,392 225,294 48 Individuals, partnerships, and corporations 183,749 181,073' 184,830 170,110' 194,887 175,034 190,794 170,494 178,844 49 Other holders 44,773 42,334 47,295 44,246 54,149 40,781 47,798 40,898 46,451 50 States and political subdivisions 6,620 6,652 6,929 7,121 7,996 6,033 7,114 6,864 6,398 51 U.S. government 1,795 1,975 4,107 3,387 3,660 1,323 3,060 1,249 1,425 52 Depository institutions in the United States 20,396 18,243 20,050 18,299 24,792 17,880 23,712 18,528 22,888 53 Banks in foreign countries 6,336 4,854 5,486 5,118 5,689 4,987 5,086 5,186 5,374 54 Foreign governments and official institutions 582 612 612 686 690 694 621 658 564 55 Certified and officers' checks 9,045 9,998 10,111 9,635 11,323 9,864 8,205 8,414 9,802 56 Transaction balances other than demand deposits 91,982 91,697 94,683 88,294 88,717 88,366 88,108 86,695 86,705 57 Nontransaction balances 799,870 801,033' 796,309 791,863' 791,695 793,934 795,292 791,369 792,703 58 Individuals, partnerships, and corporations 763,178 764,247' 759,500 755,073' 755,230 756,201 757,458 753,467 754,688 59 Other holders 36,693 36,786 36,810 36,790 36,465 37,734 37,834 37,902 38,015 60 States and political subdivisions 30,432 30,818 30,826 30,730 30,376 31,527 31,588 31,738 31,822 61 U.S. government 874 871 899 900 1,037 1,030 1,051 1,065 1,059 62 Depository institutions in the United States 4,911 4,630 4,614 4,669 4,558 4,686 4,688 4,581 4,603 63 Foreign governments, official institutions, and banks .... 476 467 471 491 494 490 507 518 532 64 Liabilities for borrowed money5 228822,,883311 266,262' 279,937 268,168' 293,609 268,006 273,137 261,054 276,948 65 Borrowings from Federal Reserve Banks 8800 0 0 0 0 0 200 0 0 66 Treasury tax and loan notes , 13,997 3,779' 22,701 27,030' 29,172 16,165 4,430 2,868 16,654 67 Other liabilities for borrowed money6 226688,,775544 226622,,448833'' 225577,,223366 224411,,113377'' 226644,,443366 225511,,884422 226688,,550077 225588,,118855 260,294 68 Other liabilities (including subordinated notes and debentures) 106,740 108,585' 106,352 106,888' 105,492 106,403 105,941 104,969 104,852 69 Total liabilities 1,509,947 1,490,983' 1,509,406 1,469,569' 1,528,548 1,472,524 1,501,071 1,455,479 1,486,501 70 Residual (Total assets minus total liabilities)7 112,315 112,755' 112,577 113,034' 112,110 113,267 113,435 113,910 114,412 MEMO 71 Total loans and leases, gross, adjusted, plus securities8 .. 1,313,742 1,311,283' 1,317,123 1,307,379' 1,321,986 1,306,773 1,310,667 1,299,649 1,301,787 72 Time deposits in amounts of $100,000 or more 201,439 201,589' 200,394 198,799' 198,020 198,249 197,639 196,960 196,710 73 Loans sold outright to affiliates, total9 1,180 1,184 1,197 1,196 1,164 1,152 1,149 1,123 1,032 74 Commercial and industrial 678 682 694 664 657 639 590 554 536 75 Other 502 502 503 532 507 513 559 568 495 76 Foreign branch credit extended to U.S. residents1" 25,195 25,311 25,242 24,745 24,650 24,324 24,397 24,406 24,115 77 Net due to related institutions abroad -8,671 -4,196' -4,431 1,784' -1,867 -253 -586 2,925 1,570 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 BANKS Assets and Liabilities Millions of dollars, Wednesday figures 1991 Account Apr. 3 Apr. 10 Apr. 17 Apr. 24 May 1 May 8 May 15 May 22 May 29 1 Cash and balances due from depository institutions 15,516 15,741 16,708 15,605 17,553 15,791 16,052 16,409 16,793 2 U.S. Treasury and government agency securities 14,628' 13,795' 12,829' 13,089' 13,656 13,366 14,289 15,338 14,671 3 Other securities 7,49c 7,453' 7,26c 7,278' 7,279 7,260 7,213 7,185 7,227 4 Federal funds sold1 9,449 8,320 9,844 8,484 9,624 7,479 8,563 7,393 10,206 6 5 7 8 Ot T T C h o o e o r m c o l o t m o h m a e e n m r r s c s e 2 i r a a c n l i d a a l n l b d e a a n i s n e k d s s u , i s n g t r r t o i h a s e l s United States .. 1 8 3 5 4 2 6 , , , , 1 2 1 6 5 9 5 1 9 0 4 4 ' 1 s 3 4 3 i 5 . , , , 3 9 0 s 4 7 5 o 5 6 7 c 1 8 3 4 4 2 5 , , , , 9 9 6 1 4 0 2 9 1 3 2 4 ' 1 8 3 5 3 2 5 , , , , 1 3 6 1 7 0 7 6 7 7 1 3 ' 1 8 3 4 5 2 5 , , , , 4 1 0 4 9 2 2 6 6 8 8 9 1 8 3 4 1 3 4 , , , , 1 5 3 1 6 5 1 9 3 2 6 2 1 8 3 4 2 3 5 , , , , 7 0 7 3 7 7 8 6 4 4 9 1 1 8 3 4 2 2 4 , , , , 5 8 0 3 1 7 9 3 4 8 0 0 1 8 3 4 5 2 5 , , , , 9 2 4 9 9 0 8 0 9 7 0 5 9 Bankers acceptances and commercial paper 2,266 2,085 1,871 1,763 1,919 2,031 2,165 2,049 2,025 10 All other 80,348' 79,716' 80,323' 80.40C 80,109 79,521 79,909 80,042 80,455 11 U.S. addressees 77,913' 77,348' 77,937' 78,168' 77,981 77,317 77,729 77,848 78,247 1 1 1 1 1 1 1 2 3 4 5 6 7 8 T L F o o o C B N r a f o n a o i p N n n s m n u a k o b r m s n s c n a e c h e - n c i i U a r n a k u c s l r . i f i e S f a i n o i n d . l n g r s e a a b t b i a n i d a g y t n c d n u n i d r r k a t i e e c l s o c a s o a n i l s i u n r n s e e n r s e y s t t t s i h r t i t a i n e u e t g t e s U i o s n e n i c s t u e r d i ti S e t s a te . s .. . 3 1 1 2 5 0 8 1 1 1 , , , , , , , 4 8 9 3 2 7 7 3 0 4 5 8 8 7 5 6 0 0 4 1 1 ' ' 3 1 1 2 5 0 1 8 1 1 , , , , , , , 9 3 0 4 6 4 7 1 6 1 2 9 0 7 2 7 3 1 6 6 3 ' ' 3 1 1 2 5 0 1 0 8 1 , , , , , , , 3 6 7 3 8 5 9 8 8 8 6 9 6 1 6 9 9 8 0 6 5 ' ' 3 1 1 2 5 0 1 8 1 1 , , , , , , , 2 5 2 6 8 3 8 3 8 1 8 8 1 9 1 1 3 3 9 4 5 ' ' 3 1 1 0 2 5 2 1 0 8 , , , , , , , 7 8 1 1 7 2 5 4 4 2 0 7 1 9 2 7 8 5 1 2 4 3 1 1 0 2 5 2 0 7 1 , , , , , , , 9 2 0 7 2 6 6 7 0 2 2 5 2 4 1 4 9 2 6 7 8 3 1 1 6 2 1 2 1 0 8 , , , , , , , 1 2 0 1 2 0 6 7 1 5 1 8 9 3 8 4 0 2 0 4 3 3 1 9 0 2 5 2 1 7 , , , , , , , 5 9 1 9 2 6 0 1 1 9 1 0 6 9 9 1 4 2 8 2 3 3 1 9 6 1 2 2 1 7 , , , , , , , 5 3 1 6 2 6 5 8 1 8 3 0 3 5 8 0 4 8 9 0 6 19 To foreign governments and official 2 2 0 1 Ot A he ll r o a i t n s h s s e e t r i t t s u t ( i c o l n a s im s on nonrelated parties) , 2 2 9 , ,3 3 1 3 6 8 3 0 8 ' 2 2 9, , 4 2 2 7 1 4 4 4 3 ' 2 2 9, , 0 3 2 9 2 5 3 0 8 ' 2 2 9, , 3 3 2 2 2 9 1 5 1 ' 2 2 8 , , 1 7 2 5 7 2 9 6 2 28 1 , , 7 7 2 2 8 2 3 6 8 28 1 , , 6 2 7 6 6 3 3 7 5 28 1 , , 2 2 8 1 0 2 4 6 0 27 1 , , 8 8 2 3 2 5 0 6 0 22 Total assets3 246,216 240,704 244,478 240,669 244,776 244,063 250,730 244,469 247,282 23 Deposits or credit balances due to other 24 Dem t a h n a d n d d e i p re o c s t i l t y s related institutions 7 4 7 , , 0 39 5 2 1 7 4 8 , , 1 3 7 5 3 6 8 4 0 , , 1 69 6 8 6 8 4 2 , , 1 2 3 6 7 8 8 4 2 , , 2 7 1 0 4 1 83 3, , 9 0 4 4 7 2 84 3 , , 6 8 2 4 1 9 8 4 6 , , 1 8 7 7 2 3 88 3 , , 3 8 7 0 6 9 25 Indiv c i o d r u p a o ls ra , t p io a n rt s n erships, and 2 1 , , 5 4 9 6 0 0 2 1 , , 4 6 9 7 5 8 2 1 , , 6 5 4 1 7 9 2 1 , , 6 4 4 8 9 8 2 1 , , 7 4 8 2 9 6 2 1 , , 3 6 2 2 5 2 2 1 , , 5 3 4 0 0 9 2 1 , , 4 7 6 0 4 8 2 1 , , 4 3 2 8 8 1 2 2 6 7 No O n t t h r e a r n saction accounts 73,341 74,183 76,532 78,131 78,487 79,095 80,771 82,701 84,567 2 2 9 8 O In t d h i e v c r i o d r u p a o l r s a , t p io a n rt s n erships, and 5 1 4 8 , , 3 9 9 4 4 7 5 1 4 9 , , 8 3 0 8 4 0 5 2 5 0 , , 6 8 8 4 4 8 5 2 6 1 , , 8 3 1 1 2 9 5 1 8 9 , , 9 5 8 0 3 4 5 1 9 9 , , 3 7 7 1 7 8 6 20 0 , , 1 6 0 6 5 6 6 2 1 0 , , 8 8 0 % 5 6 2 3 1 , , 0 5 0 6 4 3 3 3 0 1 Fe B de o r r a r r o l e w f l u a in t n e g d d s s i f p n r u s o r t m c it h u o a t t i s o h e n e d r s 5 than directly 9 48 7 , , 3 6 7 6 1 3 9 4 5 4 , , 4 8 2 8 7 8 9 46 3 , , 8 2 1 5 3 3 9 41 0 , , 9 6 9 1 9 0 4 9 4 1 , , 8 3 8 5 0 0 9 4 1 4 , , 9 1 1 0 6 9 9 47 4 , , 9 8 2 9 5 6 4 8 2 9 , , 5 5 5 1 2 4 4 8 4 8 , , 3 4 0 0 5 4 3 3 3 2 3 4 Ot F F h r r e o o r m m l U i a o c n b o t i i t h l m e i e t d m i r e s S s e r t f c a o i t a e r l s b b o a rr n o k w s e i d n m th o e ney 2 2 4 3 4 9 , , , 8 5 2 5 1 9 5 6 2 2 2 5 4 0 0 , , , 8 0 5 7 1 3 0 8 9 2 2 4 1 5 6 , , , 3 5 4 0 0 3 6 7 9 2 4 1 7 8 4 , , , 7 6 2 7 1 2 8 1 1 2 2 4 1 3 6 , , , 5 3 4 3 4 7 7 3 0 2 4 1 7 6 7 , , , 8 1 9 0 2 8 7 1 8 2 2 4 5 6 2 , , , 2 9 6 6 7 6 5 1 0 2 4 1 7 6 5 , , , 1 9 3 6 6 9 1 2 1 2 2 4 2 4 1 , , , 7 0 5 9 9 0 7 9 8 35 To co U m ni m te e d r c S ia ta l t b es a nks in the 20,058 19,372 18,570 19,091 18,278 18,151 17,902 16,650 15,815 36 To others 29,234 31,166 27,869 29,520 28,193 29,656 29,070 30,312 28,284 37 Other liabilities to nonrelated parties 28,374 28,133 28,134 28,452 28,076 28,309 28,247 27,876 28,178 38 Total liabilities6 246,216 240,704 244,478 240,669 244,776 244,063 250,730 244,469 247,282 3 4 9 0 T N M o e E t t M a d l O u l o e a t n o s r ( e g la ro te s d s) i a n n s d ti t s u e t c io u n r s it i a e b s r a o d ad ju sted . 15 9 1 , , 1 0 4 8 1 2 14 7 9 , , 9 6 2 3 5 6 14 9 9 , , 2 8 7 6 0 3 15 8 0 , , 1 0 1 0 9 2 1 1 5 0 0 , , 2 1 2 2 7 9 14 3 8 , , 5 7 4 6 5 0 15 2 1 , , 3 4 7 2 6 5 15 4 1 , , 6 9 0 1 6 2 15 7 3 , , 6 2 7 1 4 4 1. Includes securities purchased under agreements to resell. 5. Includes securities sold under agreements to repurchase. 2. Includes transactions with nonbank brokers and dealers in securities. 6. Includes net due to related institutions abroad for U.S. branches and 3. 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. 7. Excludes loans to and federal funds transactions with commercial banks in 4. Includes other transaction deposits. the U.S. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Nonfinancial Statistics • August 1991 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1990 1991 I 1986 1987 1988 1989 1990 Dec. Dec. Dec. Dec. Dec. Nov. Dec. Jan. Feb. Mar. Apr. Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 331,316 358,997 458,464 530,123 566,688 564,482 566,688 569,378 561,597 566,069 541,648 Financial companies1 Dealer-placed paper1 2 Total 101,707 102,742 159,777 186,343 218,953 221111,,998866 218,953 221166,,114488 221177,,881122 222244,,886655 221122,,333377 3 Bank-related (not seasonally adjusted)3 22,,226655 11,,442288 11,,224488 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Directly placed paperA 4 Total 151,897 174,332 194,931 212,640 220011,,886622 220044,,119911 220011,,886622 220022,,999977 119977,,999900 119900,,662200 118844,,770033 5 Bank-related (not seasonally adjusted)3 40,860 43,173 43,155 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 6 Nonfinancial companies3 77,712 81,923 103,756 131,140 145,873 148,305 145,873 150,233 145,795 150,584 144,608 Bankers dollar acceptances (not seasonally adjusted)6 7 Total 64,974 70,565 66,631 62,972 54,771 53,968 54,771 56,498 52,831 48,795 47,086 Holder 8 Accepting banks 13,423 10,943 9,086 9,433 9,017 8,751 9,017 10,029 10,240 9,237 8,593 9 Own bills 11,707 9,464 8,022 8,510 7,930 7,535 7,930 8,539 8,391 7,569 7,599 10 Bills bought 1,716 1,479 1,064 924 1,087 11,,221177 1,087 1,490 11,,884499 11,,666688 994 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 1,066 918 880 918 927 892 872 934 13 Others 50,234 58,658 56,052 52,473 44,836 44,337 44,836 45,542 41,699 38,686 37,559 Basis 14 Imports into United States 14,670 16,483 14,984 15,651 13,096 12,758 13,096 14,284 13,799 12,509 12,511 15 Exports from United States 12,960 15,227 14,410 13,683 12,703 13,865 12,703 12,870 12,082 11,500 11,219 16 All other 37,344 38,855 37,237 33,638 28,973 27,345 28,973 29,344 26,950 24,786 23,356 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 financ- communications, construction, manufacturing, mining, wholesale and retail trade, ing; factoring, finance leasing, and other business lending; insurance underwrit- transportation, and services. ing; 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 Period Av r e a r te a ge Period Av r e a r t a e ge Period 8.75 1988 9.32 1989— Jan. 10.50 1990—Jan. ... 8.50 1989 10.87 Feb. 10.93 Feb. .. 9.00 1990 10.01 Mar. 11.50 Mar. .. 9.50 Apr. 11.50 Apr. .. 10.00 1988— Jan. 8.75 May 11.50 May ... 10.50 Feb. 8.51 June 11.07 June .. Mar. 8.50 July 10.98 July ... 11.00 Apr. 8.50 Aug. 10.50 Aug. .. 11.50 May 8.84 Sept. 10.50 Sept. .. 11.00 June 9.00 Oct. 10.50 Oct. ... 10.50 July 9.29 Nov. 10.50 Nov. .. Aug. 9.84 Dec. 10.50 Dec. ., 10.00 Sept. 10.00 Oct. 10.00 1991—Jan. . 9.50 Nov. 10.05 Feb. 9.00 Dec. 10.50 Mar. 8.50 Apr. May . June 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. 1991 1991, week ending IInnssttrruummeenntt 11998888 11998899 11999900 Feb. Mar. Apr. May May 3 May 10 May 17 May 24 May 31 MONEY MARKET RATES 2 1 F D e is d c e o ra u l n t f u w n i d n s d 1' o 2 w ,3 borrowing^ i . 7 6 . . 5 2 7 0 9 6 . . 2 9 1 3 8 6 . . 1 9 0 8 6 6 . . 2 0 5 0 6 6. . 0 1 0 2 5 5 . . 9 9 8 1 5 5 . . 5 7 0 8 5 5 . . 8 9 6 2 5 5 . . 5 7 0 9 5 5 . . 7 5 8 0 5 5 . . 5 7 0 9 5 5 . . 5 7 0 2 Commercial paper3'5,6 3 1-month 7.58 9.11 8.15 6.53 6.48 6.08 5.91 5.93 5.92 55..9933 55..9911 55..9911 4 3-month 7.66 8.99 8.06 6.49 6.41 6.07 5.92 5.93 5.92 5.94 5.93 5.94 5 6-month 7.68 8.80 7.95 6.41 6.36 6.07 5.94 5.94 5.93 5.95 5.94 5.95 Finance paper, directly placed3, • 6 1-month 7.44 8.99 8.00 6.31 6.31 55..9955 55..7766 55..8800 55..7799 55..8800 55..7766 55..6699 7 3-month 7.38 8.72 7.87 6.38 6.28 5.94 5.81 5.82 5.81 5.84 5.81 5.80 8 6-month 7.14 8.16 7.53 6.14 6.20 5.91 5.72 5.75 5.72 5.72 5.73 5.72 Bankers acceptances3, • 9 3-month 7.56 8.87 7.93 6.36 6.24 5.92 5.75 55..7755 55..7755 55..7766 55..7766 55..7766 10 6-month 7.60 8.67 7.80 6.22 6.21 5.92 5.77 5.75 5.75 5.77 5.78 5.80 Certificates of deposit, secondary 11 1-month 7.59 9.11 8.15 6.45 6.47 6.03 5.86 5.87 5.87 5.88 5.86 5.85 1? 3-month 7.73 9.09 8.15 6.52 6.45 6.06 5.91 5.91 5.91 5.93 5.91 5.90 13 6-month 7.91 9.08 8.17 6.51 6.50 6.16 6.03 6.01 6.01 6.06 6.04 6.04 14 Eurodollar deposits, 3-month3,10 7.85 9.16 8.16 6.60 6.44 6.11 5.94 6.04 5.93 5.94 5.94 5.94 U.S. Treasury bills Secondary market3,5 15 3-month 6.67 8.11 7.50 5.94 5.91 5.65 5.46 55..5511 55..4488 55..4444 55..4444 55..4466 16 6.91 8.03 7.46 5.93 5.92 5.71 5.61 5.60 5.63 5.59 5.63 5.63 17 1-year 7.13 7.92 7.35 5.91 6.00 5.85 5.76 5.73 5.76 5.76 5.77 5.76 Auction average3, 18 3-month 6.68 8.12 7.51 5.95 5.91 5.67 5.51 55..6600 55..5500 55..5500 55..5500 55..4466 19 6-month 6.92 8.04 7.47 5.93 5.91 5.73 5.65 5.68 5.61 5.63 5.66 5.65 20 1-year 7.17 7.91 7.36 5.85 6.06 5.88 5.71 n.a. 5.71 n.a. n.a. n.a. CAPITAL MARKET RATES U.S. Treasury notes and bonds Constant maturities12 21 1-year 7.65 8.53 7.89 6.27 6.40 6.24 6.13 6.11 6.13 6.13 6.15 6.13 22 2-year 8.10 8.57 8.16 6.87 7.10 6.95 6.78 6.81 6.84 6.85 6.78 6.64 23 3-year 8.26 8.55 8.26 7.08 7.35 7.23 7.12 7.16 7.13 7.13 7.12 7.07 24 5-year 8.47 8.50 8.37 7.47 7.77 7.70 7.70 7.64 7.69 7.76 7.73 7.66 25 7-year 8.71 8.52 8.52 7.73 8.00 7.92 7.94 7.89 7.93 7.99 7.96 7.92 26 10-year 8.85 8.49 8.55 7.85 8.11 8.04 8.07 8.02 8.06 8.11 8.08 8.06 27 Com 3 p 0 o - s y it e e a 1 r 3 8.96 8.45 8.61 8.03 8.29 8.21 8.27 8.19 8.25 8.32 8.29 8.26 28 Over 10 years (long-term) 8.98 88..5588 88..7744 88..1122 8.38 8.29 8.33 8.26 8.31 8.39 8.36 8.33 State and local notes and bonds Moody's series1 29 Aaa 7.36 7.00 6.% 6.41 6.76 6.70 6.70 6.63 6.68 6.66 6.75 6.77 30 Baa 7.83 7.40 7.29 7.03 7.29 7.18 7.10 7.11 7.10 7.05 7.11 7.14 31 Bona Buyer series'J 77..6688 77..2233 77..2277 66..9911 7.10 7.02 6.95 6.95 6.93 6.94 6.98 6.97 Corporate bonds Seasoned issues 32 All industries 10.18 9.66 9.77 9.36 9.43 9.33 9.32 9.28 9.29 9.35 9.34 9.33 34 Aaa 9.71 9.26 9.32 8.83 8.93 8.86 8.86 8.83 8.83 8.89 8.86 8.87 34 Aa 9.94 9.46 9.56 9.16 9.21 9.12 9.15 9.08 9.12 9.17 9.18 9.17 35 A 10.24 9.74 9.82 9.38 9.50 9.39 9.41 9.36 9.38 9.44 9.42 9.42 3 3 6 / A- B ra a t a e d, recently offered utility bonds1 .. 11 1 00 0 .. . 22 8 00 3 1 99 0 .. . 77 1 99 8 1 1 0 0 . . 0 3 1 6 1 9 0 . . 5 0 4 7 1 9 0 . . 5 0 8 9 9 9 . .9 46 4 9 9 . . 4 86 5 9 9 . . 4 8 2 3 9 9 . .8 51 3 9 9 . . 4 9 3 1 9 9 . . 4 8 7 9 9 9 . . 3 8 9 5 MEMO; Dividend/price ratio 38 Preferred stocks 9.23 9.05 n.a. 8.46 8.56 8.43 8.21 8.31 8.15 8.25 8.22 8.12 39 Common stocks 3.64 3.45 n.a. 3.35 3.26 3.19 3.23 3.20 3.22 3.31 3.24 3.19 1. The daily effective federal funds rate is a weighted average of rates on 12. 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 13. 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. 14. General obligation based on Thursday figures; Moody's Investors Service. 4. Rate for the Federal Reserve Bank of New York. 15. General obligations only, with 20 years to maturity, issued by 20 state and 5. Quoted on a discount basis. local governmental units of mixed quality. Based on figures for Thursday. 6. An average of offering rates on commercial paper placed by several leading 16. Daily figures from Moody's Investors Service. Based on yields to maturity dealers for firms whose bond rating is AA or the equivalent. on selected long-term bonds. 7. An average of offering rates on paper directly placed by finance companies. 17. Compilation of the Federal Reserve. This series is an estimate of the yield 8. Representative closing yields for acceptances of the highest rated money on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of center banks. call protection. Weekly data are based on Friday quotations. 9. An average of dealer offering rates on nationally traded certificates of 18. Standard and Poor's corporate series. Preferred stock ratio based on a deposit. sample often issues: four public utilities, four industrials, one financial, and one 10. Bid rates for Eurodollar deposits at 11 a.m. London time. transportation. Common stock ratios on the 500 stocks in the price index. 11. Auction date for daily data; weekly and monthly averages computed on an NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases. issue-date basis. For address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Nonfinancial Statistics • August 1991 1.36 STOCK MARKET Selected Statistics 1990 1991 IInnddiiccaattoorr 11998888 11998899 11999900 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 149.96 180.13 183.48 173.22 168.05 172.21 179.57 177.95 197.75 203.56 207.71 206.93 2 Industrial 180.83 228.04 225.81 216.81 208.58 212.81 221.86 220.69 246.74 255.36 260.16 260.13 3 Transportation 134.07 174.90 158.64 136.95 131.99 132.96 141.31 145.89 166.06 166.26 166.90 170.77 4 Utility 72.22 94.33 90.61 83.30 87.27 89.69 91.56 88.59 92.08 92.29 92.92 90.73 5 Finance 127.41 162.01 133.23 118.59 108.01 113.76 122.18 121.39 141.03 145.41 152.64 151.32 6 Standard & Poor's Corporation (1941-43 = 10)1 265.86 323.05 334.63 315.41 307.12 315.29 328.75 325.49 362.26 372.28 379.68 377.99 7 American Stock Exchange (Aug. 31, 1973 = 50? 295.06 356.67 338.36 318.53 296.67 294.88 305.54 304.08 338.11 353.98 365.02 362.67 Volume of trading (thousands of shares) 8 New York Stock Exchange 161,509 165,568 156,842 142,054 159,590 149,916 155,836 166,323 226,635 196,343 182,510 170,337 9 American Stock Exchange 9,955 13,124 13,155 11,668 11,294 10,368 11,620 10,870 16,649 15,326 13,140 10,995 Customer financing (end-of-period balances, in millions of dollars) 10 Margin credit at broker-dealers3 32,740 34,320 28,210 29,640 28,650 27,820 28,210 27,390 28,860 29,660 30,020 n.a. Free credit balances at brokers4 11 Margin-account5 5,660 7,040 8,050 7,285 7,245 7,300 8,050 7,435 7,190 7,320 6,975 n.a. 12 Cash-account 16,595 18,505 19,285 16,185 15,820 17,025 19,285 18,825 19,435 19,555 17,830 n.a. Margin requirements (percent of market value and effective date)6 Mar. 11, 1968 June 8 , 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 13 Margin stocks 70 80 65 55 65 50 14 Convertible bonds 50 60 50 50 50 50 15 Short sales 70 80 65 55 65 50 1. Effective July 1976, includes a new financial group, banks and insurance "margin securities" (as defined in the regulations) when such credit is collatercompanies. With this change the index includes 400 industrial stocks (formerly alized by securities. Margin requirements on securities other than options are the 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40 difference between the market value (100 percent) and the maximum loan value of financial. collateral as prescribed by the Board. Regulation T was adopted effective Oct. 15, 2. Beginning July 5, 1983, the American Stock Exchange rebased its index 1934; Regulation U, effective May 1, 1936; Regulation G, effective Mar. 11, 1968; effectively cutting previous readings in half. and Regulation X, effective Nov. 1, 1971. 3. Beginning July 1983, under the revised Regulation T, margin credit at On Jan. 1, 1977, the Board of Governors for the first time established in broker-dealers includes credit extended against stocks, convertible bonds, stocks Regulation T the initial margin required for writing options on securities, setting acquired through exercise of subscription rights, corporate bonds, and govern- it at 30 percent of the current market-value of the stock underlying the option. On ment securities. Separate reporting of data for margin stocks, convertible bonds, Sept. 30, 1985, the Board changed the required initial margin, allowing it to be the and subscription issues was discontinued in April 1984. same as the option maintenance margin required by the appropriate exchange or 4. Free credit balances are in accounts with no unfulfilled commitments to the self-regulatory organization; such maintenance margin rules must be approved by brokers and are subject to withdrawal by customers on demand. the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC 5. New series beginning June 1984. approved new maintenance margin rules, permitting margins to be the price of the 6. These regulations, adopted by the Board of Governors pursuant to the option plus 15 percent of the market value of the stock underlying the option. Securities Exchange Act of 1934, limit the amount of credit to purchase and carry Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A25 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1990 1991 AAccccoouunntt 11998888 11998899 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. SAIF-insured institutions 1 Assets 1,350,500 1,249,055 1,174,615 l,162,297r 1,156,789' 1,125,653' 1,116,641' 1,109,032' 1,084,90C 1,066,116' 1,054,897' 1,042,169 2 Mortgages 764,513 733,729 691,239 689,079 684,936' 665,655' 662,309' 653,472' 633,567' 624,783' 619,725' 610,674 3 Mortgage-backed securities 214,587 170,532 159,173 158,146 156,398 154,197 153,469 155,616 155,32C 151,522' 149,433 147,479 4 Contra-assets to mortgage assets1 . 37,950 25,457 20,337 19,552 19,453' 18,550' 17,139' 17,038 16,918' 15,169' 14,636' 14,495 Commercial loans 33,889 32,150 28,753 28,483 27,868 26,762' 26,052 25,262 24,139' 23,668' 23,194' 22,305 6 Consumer loans 61,922 58,685 55,171 54,666' 53,387 51,874 50,746' 50,177' 48,756' 48,137' 47,707' 47,636 7 Contra-assets to nonmortgage loans . 3,056 3,592 1,980 2,034' 1,982' 1,769' 1,692' 1,936' l^ 1,846' 1,797 8 Cash and investment securities 186,986 166,053 155,674 150,399 153,061 148,058' 145,286 145,998' 146,534' 140,451' 138,819' 139,059 9 Other3 129,610 116,955 106,922 103,226' 102,627' 99,64c 97,686' 97,237' 95,439' 94,417' 92,501' 91,309 10 Liabilities and net worth . 1,350,500 1,249,055 1,174,615 1,162,297' 1,156,789' 1,125,653' 1,116,641' 1,109,032' 1,084,90c 1,066,116' 1,054,897' 1,042,169 11 Savings capital 971,700 945,656 890,497 885,286 878,736 857,688 851,81C 846,822' 835,496' 823,499' 816,50C 817,010 12 Borrowed money 299,400 252,230 230,169 222,439' 221,872 213,563' 208,105' 203,855' 197,353' 188,937' 183,672' 169,428 n FHLBB 134,168 124,577 109,733 106,127 105,882 101,731 100,574 100,493 100,391 95,842' 94,658 90,555 14 Other 165,232 127,653 120,436 116,312' 115,990 111,832' 107,531' 103,362' 96,962' 93,095' 89,014' 78,873 15 Other 24,216 27,556 25,151 26,798' 28,293' 23,874' 25,559' 26,127' 21,305' 22,154' 23,319' 20,286 16 Net worth n.a. 23,612 28,803' 27,775' 27,889' 30,526' 31,188' 32,228' 30,747' 31,526' 31,407' 35,446 SAIF-insured federal savings banks 17 Assets 425,966 498,522 583,392 580,847 584,632 591,136 588,880 585,847 576,531 567,373 556,708 552,520 18 Mortgages 230,734 283,844 323,516 328,236 328,895 332,927 332,431 328,122 320,233 316,889 313,880 309,618 19 Mortgage-backed securities 64,957 70,499 78,001 80,474 80,994 82,418 82,219 84,190 81,205 79,451 78,290 77,684 20 Contra-assets to mortgage assets . 13,140 13,548 10,200 9,227 9,339 9,964 9,578 9,305 9,591 8,222 7,777 7,975 21 Commercial loans 16,731 18,143 19,683 18,810 18,662 18,767 18,458 18,197 17,674 17,299 17,008 16,556 22 Consumer loans 24,222 28,212 32,745 31,003 31,183 30,750 30,682 30,421 29,933 31,179 29,292 30,586 23 Contra-assets to nonmortgage loans • 889 1,193 970 870 813 980 572 809 990 770 895 966 24 Finance leases plus interest 880 11,,110011 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 75,081 71,354 73,756 73,602 75,117 72,454 75,940 71,066 67,721 68,157 26 Other 35,412 39,981 47,723 44,150 44,129 46,043 45,287 45,319 45,008 44,768 44,210 43,714 27 Liabilities and net worth . 425,966 498,522 583,392 580,847 584,632 591,136 588,880 585,847 576,531 567,373 556,708 552,520 28 Savings capital 298,197 360,547 427,379 423,472 424,260 434,705 436,080 436,903 434,297 428,822 422,745 425,720 29 Borrowed money 99,286 108,448 121,721 118,393 120,592 119,991 115,472 111,270 107,270 102,313 97,089 90,692 30 FHLBB 46,265 57,032 60,666 61,287 62,209 61,605 60,256 60,265 59,949 57,703 56,078 53,134 31 Other 53,021 51,416 61,055 57,106 58,383 58,386 55,216 51,005 47,321 44,610 41,011 37,558 32 Other 8,075 9,041 8,889 9,245 10,128 8,253 9,063 9,824 8,193 8,356 8,721 7,700 33 Net worth 20,218 22,716 21,944 26,424 26,420 24,859 24,837 24,931 24,172 25,285 25,432 25,494 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Financial Statistics • August 1991 1.37—Continued 1990 1991 AAccccoouunntt 11998888 11998899 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Credit unions4 34 Total assets/liabilities and capital 174,593 183,688 195,302 194,523 196,625 197,272 35 Federal 114,566 120,666 128,142 127,564 128,715 129,086 36 State 60,027 63,022 67,160 66,959 67,910 68,186 37 Loans outstanding.. 113,191 122,608 123,968 124,343 126,156 127,341 38 Federal 73,766 80,272 81,063 81,063 82,040 82,823 39 State 39,425 42,336 42,905 43,280 44,116 44,518 40 Savings 159,010 167,371 178,127 176,360 178,081 177,532 41 Federal 104,431 109,653 116,717 115,305 116,411 115,469 42 State 54,579 57,718 61,408 61,056 61,670 62,063 Life insurance companies5 43 Assets 1,299,756 1,376,660 1,387,463 1,411,881 Securities 44 Government.... 178,141 195,287 202,962 208,782 45 United States6 153,361 175,156 180,200 46 State and local 9,028 10,963 11,818 12,038 47 Foreign 15,752 16,589 15,988 16,544 48 Business 663,677 705,070 n.a. n.a. 709,470 n.a. n.a. 724,603 n.a. n.a. 49 Bonds 538,063 570,245 588,251 596,053 50 Stocks 125,614 134,825 121,219 128,550 51 Mortgages 254,215 264,865 266,063 267,922 52 Real estate 39,908 44,188 44,544 44,718 53 Policy loans 57,439 63,144 60,641 61,562 54 Other assets 106,376 104,106 103,783 104,294 1. Contra-assets are credit-balance accounts that must be subtracted from the 7. Issues of foreign governments and their subdivisions and bonds of the corresponding gross asset categories to yield net asset levels. Contra-assets to International Bank for Reconstruction and Development. mortgage loans, contracts, and pass-through securities include loans in process, NOTE. SAIF-insured institutions: Estimates by the OTS for all institutions unearned discounts and deferred loan fees, valuation allowances for mortgages insured by the SAIF and based on the OTS thrift Financial Report. "held for sale," and specific reserves and other valuation allowances. SAIF-insured federal savings banks: Estimates by the OTS for federal savings 2. Contra-assets are credit-balance accounts that must be subtracted from the banks insured by the SAIF and based on the OTS thrift Financial Report. corresponding gross asset categories to yield net asset levels. Contra-assets to Credit unions: Estimates by the National Credit Union Administration for nonmortgage loans include loans in process, unearned discounts and deferred loan federally chartered and federally insured state-chartered credit unions serving fees, and specific reserves and valuation allowances. natural persons. 3. Holding of stock in Federal Home Loan Bank and Finance leases plus Life insurance companies: Estimates of the American Council of Life Insurance interest are included in "Other" (line 9). for all life insurance companies in the United States. Annual figures are annual- 4. Data include all federally insured credit unions, both federal and state statement asset values, with bonds carried on an amortized basis and stocks at chartered, serving natural persons. year-end market value. Adjustments for interest due and accrued and for 5. Data are no longer available on a monthly basis for life insurance companies. differences between market and book values are not made on each item separately 6. Direct and guaranteed obligations. Excludes federal agency issues not but are included, in total, in "other assets." guaranteed, which are shown in the table under "Business" securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets All 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll FFFiiissscccaaalll TTTyyypppeee ooofff aaaccccccooouuunnnttt ooorrr ooopppeeerrraaatttiiiooonnn yyyeeeaaarrr yyyeeeaaarrr yyyeeeaaarrr 1990 1991 111999888888 111999888999 111999999000 Dec. Jan. Feb. Mar. Apr. May U.S. budget1 1 Receipts, total 908,166 990,701 1,031,308 101,900 100,713 67,657 64,805 140,380 63,560 2 On-budget 666,675 727,035 749,654 82,059 70,023 45,594 39,011 108,746 41,958 3 Off-budget 241,491 263,666 281,654 19,841 30,690 22,063 25,794 31,634 21,602 4 Outlays, total 1,063,318 1,144,020 1,251,766 109,212 99,023 93,834 105,876 110,249 116,906 5 On-budget 860,627 933,107 1,026,701 94,679 79,105 72,667 83,340 90,362 95,903 6 Off-budget 202,691 210,911 225,065 14,532 19,918 21,167 22,536 19,887 21,003 7 Surplus, or deficit (-), total -155,151 -153,319 -220,458 -7,311 1,690 -26,177 -41,071 30,131 -53,346 8 On-budget -193,952 -206,072 -277,047 -12,620 -9,082 -27,073 -44,329 18,384 -53,945 9 Off-budget 38,800 52,753 56,590 5,309 10,772 896 3,258 11,747 599 Source of financing (total) 10 Borrowing from the public 166,139 141,806 264,453 19,700 31,764 34,611 -9,913 -9,399 41,742 11 Operating cash (decrease, or increase (-)) . -7,962 3,425 818 -9,286 -30,627 2,341 28,473 -16,214 20,362 12 Other -3,026 8,088 -44,813 -3,103 -2,827 -10,775 22,511 -4,518 -8,758 MEMO 13 Treasury operating balance (level, end of period) 44,398 40,973 40,155 32,188 62,815 60,474 32,001 48,215 27,853 14 Federal Reserve Banks 13,023 13,452 7,638 8,960 27,810 23,898 10,922 13,682 6,619 15 Tax and loan accounts 31,375 27,521 32,517 23,228 35,006 36,577 21,078 34,533 21,234 1. In accordance with the Balanced Budget and Emergency Deficit Control Act international monetary fund; other cash and monetary assets; accrued interest of 1985, all former off-budget entries are now presented on-budget. The Federal payable to the public; allocations of special drawing rights; deposit funds; Financing Bank (FFB) activities are now shown as separate accounts under the miscellaneous liability (including checks outstanding) and asset accounts; agencies that use the FFB to finance their programs. The act has also moved two seigniorage; increment on gold; net gain/loss for U.S. currency valuation adjustsocial security trust funds (Federal old-age survivors insurance and Federal ment; net gain/loss for IMF valuation adjustment; and profit on the sale of gold. disability insurance trust funds) off-budget. SOURCE. Monthly Treasury Statement of Receipts and Outlays of the U.S. 2. Includes SDRs; reserve position on the U.S. quota in the IMF; loans to Government and the Budget of the U.S. Government. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Nonfinancial Statistics • August 1991 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1 Millions of dollars Calendar year Fiscal Fiscal SSoouurrccee oorr ttyyppee year year 1989 1990 1991 1989 1990 HI H2 HI H2 Mar. Apr. May RECEIPTS 1 All sources 990,701 1,031,308 527,574 470,276 548,861 503,123 64,805 140,380 63,560 2 Individual income taxes, net 445,690 466,884 233,572 218,706 243,087 230,745 11,288 77,768 20,005 3 Withheld 361,386 390,480 174,230 193,296 190,219 207,469 30,478 36,428 36,958 4 Presidential Election Campaign Fund 32 32 28 3 30 3 9 6 6 5 Nonwithheld 154,839 149,189 121,563 33,303 117,675 31,728 4,426 60,246 3,067 6 Refunds 70,567 72,817 62,251 7,898 6644,,883388 88,,445555 2233,,662255 1188,,991122 2200,,002266 Corporation income taxes 7 Gross receipts 117,015 110,017 61,585 52,269 58,830 54,044 14,338 15,526 2,931 8 Refunds 13,723 16,510 7,259 6,842 8,326 77,,660033 11,,553311 22,,222299 899 9 Social insurance taxes and contributions, net 359,416 380,047 200,127 162,574 210,476 117788,,446688 3333,,004455 4422,,447788 3344,,554466 10 Employment taxes and contributions 333322,,885599 335533,,889911 118844,,556699 152,407 119955,,226699 116677,,222244 3322,,441166 3399,,667711 2277,,119922 11 Self-employment taxes and contributions 18,504 21,795 16,371 1,947 19,017 2,638 1,463 12,707 1,604 12 Unemployment insurance 22,011 21,635 13,279 7,909 12,929 8,9% 226 2,435 6,928 13 Other net receipts4 4,546 4,522 2,277 2,260 2,278 2,249 402 372 426 14 Excise taxes 34,386 35,345 16,814 16,799 18,153 17,535 4,149 3,842 3,653 15 Customs deposits 16,334 16,707 7,918 8,667 8,0% 8,568 1,271 1,219 1,244 16 Estate and gift taxes 8,745 11,500 4,583 4,451 6,442 5,333 864 1,546 835 17 Miscellaneous receipts 22,839 27,316 10,235 13,651 12,106 16,032 1,381 231 1,245 OUTLAYS 18 All types 1,144,020 1,251,766 565,425 587,394 640,867 647,218 105,876 110,249 116,906 19 National defense 303,559 299,335 148,098 149,613 152,733 149,497 15,743 21,651 25,069 20 International affairs 9,574 13,760 6,567 5,971 6,770 8,943 2,001 1,513 1,862 21 General science, space, and technology 12,838 14,420 6,238 7,091 6,974 8,081 1,317 1,369 1,410 22 Energy 3,702 2,470 2,221 1,449 1,216 979 61 -40 513 23 Natural resources and environment 16,182 17,009 7,022 9,183 7,343 9,933 1,283 1,385 1,557 24 Agriculture 16,948 11,998 9,619 4,132 7,450 6,878 1,240 2,115 1,638 25 Commerce and housing credit 29,091 67,495 4,129 22,295 38,672 37,491 6,154 4,700 3,115 26 Transportation 27,608 29,495 12,953 14,982 13,754 16,218 2,139 2,624 2,631 27 Community and regional development 5,361 8,466 1,833 4,879 3,987 3,939 497 697 698 28 Education, training, employment, and social services 36,694 37,479 18,083 18,663 19,537 18,988 3,782 3,319 3,404 29 Health 48,390 58,101 24,078 25,339 29,488 31,424 5,623 5,882 6,059 30 Social security and medicare 317,506 346,383 162,195 162,322 175,997 176,353 30,643 31,975 32,620 31 Income security 136,031 148,299 70,937 67,950 78,475 75,948 16,836 16,034 16,307 32 Veterans benefits and services 30,066 29,112 14,891 14,864 15,217 15,479 2,731 3,200 3,674 33 Administration of justice 9,422 10,076 4,801 4,909 4,868 5,265 941 1,136 1,219 34 General government 9,124 10,822 3,858 4,760 4,916 6,976 717 419 1,266 35 Net interest6 ^ 169,317 183,790 86,009 87,927 91,155 94,650 17,120 15,802 17,042 36 Undistributed offsetting receipts -37,212 -36,615 -18,131 -18,935 -17,688 -19,829 -2,952 -3,531 -3,180 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. 2. Old-age, disability, and hospital insurance, and railroad retirement accounts. SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of 3. Old-age, disability, and hospital insurance. Receipts and Outlays of the U.S. Government, and the U.S. Office of Manage- 4. Federal employee retirement contributions and civil service retirement and ment and Budget, Budget of the U.S. Government, Fiscal Year 1990. disability fund. 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 1989 1990 1991 IItteemm Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 1 Federal debt outstanding 2,763.6 2,824.0 2,881.1 2,975.5 3,081.9 3,175.5 3,266.1 3,397.3 3,491.7 2 Public debt securities 2,740.9 2,799.9 2,857.4 2,953.0 3,052.0 3,143.8 3,233.3 3,364.8 3,465.2 3 Held by public 2,133.4 2,142.1 2,180.7 2,245.2 2,329.3 2,368.8 2,437.6 2,536.6 n.a. 4 Held by agencies 607.5 657.8 676.7 707.8 722.7 775.0 795.8 828.3 n.a. 5 Agency securities 22.7 24.0 23.7 22.5 29.9 31.7 32.8 32.5 n.a. 6 Held by public 22.3 23.6 23.5 22.4 29.8 31.6 32.6 32.4 n.a. 7 Held by agencies .4 .5 .1 .1 .2 .2 .2 .1 n.a. 8 Debt subject to statutory limit 2,725.6 2,784.6 2,829.8 2,921.7 2,988.9 3,077.0 3,161.2 3,281.7 3,377.1 9 Public debt securities 2,725.5 2,784.3 2,829.5 2,921.4 2,988.6 3,076.6 3,160.9 3,281.3 3,376.7 10 Other debt1 .2 .2 .3 .3 .3 .4 .4 .4 .4 11 MEMO: Statutory debt limit 2,800.0 2,800.0 2,870.0 3,122.7 3,122.7 3,122.7 3,195.0 4,145.0 4,145.0 1. Includes guaranteed debt of Treasury and other federal agencies, specified SOURCES. Treasury Bulletin and Monthly Statement of the Public Debt of the participation certificates, notes to international lending organizations, and District United States. of Columbia stadium bonds. 1.41 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership Billions of dollars, end of period 1990 1991 Type and holder 1987 1989 1990 Q2 Q3 Q4 Q1 1 Total gross public debt 2,431.7 2,684.4 2,953.0 3,364.8 3,143.8 3,233.3 3,364.8 3,465.2 By type 2 Interest-bearing debt 2,428.9 2,663.1 2,931.8 3,362.0 3,121.5 3,210.9 3,362.0 3,441.4 3 Marketable 1,724.7 1,821.3 1.945.4 2,195.8 2,028.0 2,092.8 2,195.8 2,227.9 4 Bills 389.5 414.0 430.6 527.4 453.5 482.5 527.4 533.3 5 Notes 1,037.9 1,083.6 1.151.5 1,265.2 1,192.7 1,218.1 1,265.2 1.280.4 6 Bonds 282.5 308.9 348.2 388.2 366.8 377.2 388.2 399.3 7 Nonmarketable1 704.2 841.8 986.4 1,166.2 1,093.5 1,118.2 1,166.2 1.213.5 8 State and local government series 139.3 151.5 163.3 160.8 164.3 161.3 160.8 159.4 9 Foreign issues 4.0 6.6 6.8 43.5 36.4 36.0 43.5 42.8 10 Government 4.0 6.6 6.8 43.5 36.4 36.0 43.5 42.8 11 Public .0 .0 .0 .0 .0 .0 .0 .0 12 Savings bonds and notes 99.2 107.6 115.7 124.1 120.1 122.2 124.1 127.7 13 Government account series3 461.3 575.6 695.6 813.8 758.7 779.4 813.8 853.1 14 Non-interest-bearing debt 2.8 21.3 21.2 2.8 22.3 22.4 2.8 23.8 By holder4 15 U.S. government agencies and trust funds 477.6 589.2 707.8 828.3 775.0 795.8 828.3 16 Federal Reserve Banks 222.6 238.4 228.4 259.8 231.4 232.5 259.8 17 Private investors 1,731.4 1,858.5 2,015.8 2,288.3 2,141.8 2,207.3 2,288.3 18 Commercial banks 201.5 193.8 174.8 n.a. 189.2 188.0 n.a. 19 Money market funds 14.6 11.8 14.9 n.a. 28.1 33.6 n.a. 20 Insurance companies 104.9 107.3 130.1 n.a. 137.0 138.9 n.a. 21 Other companies 84.6 87.1 98.8 n.a. 112.1 114.6 n.a. 22 State and local Treasurys 284.6 313.6 338.7 n.a. 345.7 344.0 n.a. Individuals 2 2 3 4 O Sa t v h i e n r g s s e b cu o r n i d ti s e s 1 7 0 1 1 . . 3 1 1 7 0 9 9 . . 2 6 1 9 1 8 7 . . 8 7 n 1 . 2 a 6 . .2 1 1 1 21 2 . . 9 1 1 11 2 4 3 . . 6 9 n 1 . 2 a 6 . .2 25 Foreign and international3 299.7 362.2 392.9 n.a. 392.3 404.9 n.a. 26 Other miscellaneous investors6 569.1 593.4 672.5 n.a. n.a. 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 • August 1991 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Millions of dollars, daily averages 1991 1991, week ending Item Feb. Mar. Apr. Apr. 3 Apr. 10 Apr. 17 Apr. 24 May 1 May 8 May 15 May 22 May 29 IMMEDIATE TRANSACTIONS By type of security U.S. government securities 1 Bills 32,223 32,648 30,498 30,129 32,920 31,788 27,703 29,628 33,033 27,090 30,818 30,112 Coupon securities 2 Maturing in less than 3.5 years 42,249 35,168 37,426' 29,982 29,643 39,424 42,368 44,061 47,402 41,385 43,357 43,520 3 Maturing in 3.5 to 7.5 years... 30,587 26,889 30,113' 25,469 28,912 33,169 30,168 31,206 22,015 25,722 24,757 24,873 4 Maturing in 7.5 to 15 years 16,109 12,169 11,243' 9,784 10,712 11,890 10,703 12,868 19,081 19,922 10,290 9,789 5 Maturing in 15 years or more.. 17,860 14,127 12,905' 9,297 12,696 14,435 13,979 12,617 12,324 22,559 11,621 8,161 Federal agency securities Debt 6 Maturing in less than 3.5 years 3,946 4,375 4,171 4,412 3,854 4,074 3,883 4,865 3,609 3,661 4,444 4,834 7 Maturing in 3.5 to 7.5 years... 607 601 566 683 580 567 648 357 698 668 409 664 8 Maturing in 7.5 years or more 677 644 654 790 504 737 687 594 570 1,084 483 509 Mortgage-backed 9 Pass-throughs 10,070 9,712 10,588 8,218 10,189 13,197 10,959 9,137 11,514 10,716 7,655 8,620 10 All others 1,416 1,303 1,469 1,763 1,269 1,601 1,276 1,578 1,481 1,611 1,355 1,436 By type of counterparty Primary dealers and brokers 11 U.S. government securities 85,703 76,452 74,699' 63,350 70,667 79,505 78,334 77,699 80,762 83,695 73,008 70,085 Federal agency 12 Debt securities 1,439 1,559 1,601 1,758 1,412 1,777 1,354 1,807 1,434 1,553 1,450 1,825 13 Mortgage backed securities . 5,627 5,650 5,762 4,623 5,091 7,497 6,058 4,915 6,216 5,690 3,932 4,220 Customers 14 U.S. government securities 53,326 44,549 47,486' 41,311 44,217 51,201 46,587 52,681 53,092 52,984 47,834 46,369 Federal agency 15 Debt securities 3,792 4,062 3,790 4,128 3,526 3,601 3,864 4,010 3,444 3,860 3,886 4,182 16 Mortgage-backed securities . 5,858 5,365 6,295 5,358 6,368 7,301 6,176 5,799 6,779 6,637 5,078 5,837 FUTURE AND FORWARD TRANSACTIONS4 By type of deliverable security U.S. government securities 17 Bills 4,669 4,607 3,775 4,010 3,159 2,805 3,679 5,700 3,693 4,370 4,971 3,061 Coupon securities 18 Maturing in less than 3.5 years 2,258 1,351 1,065 999 874 1,140 1,149 1,152 1,644 1,557 1,066 910 19 Maturing in 3.5 to 7.5 years... 867 847 740 1,092 395 691 677 1,047 495 504 696 475 20 Maturing in 7.5 to 15 years ... 1,419 1,059 810 674 792 683 883 1,002 851 1,079 895 619 21 Maturing in 15 years or more.. 9,507 9,023 7,735 5,006 7,164 8,040 9,080 8,434 6,845 11,873 6,943 5,449 Federal agency securities Debt 22 Maturing in less than 3.5 years 137 100 54 41 4 167 31 12 37 15 69 101 23 Maturing in 3.5 to 7.5 years... 23 34 27 15 72 27 8 4 6 2 21 16 24 Maturing in 7.5 years or more 52 36 41 58 6 14 29 120 70 7 11 5 Mortgage-backed 25 Pass-throughs 9,662 8,313 9,316 7,502 10,218 8,608 10,624 8,799 8,798 11,677 11,096 6,830 26 All others 1,059 1,285 1,472 1,617 1,353 995 1,932 1,532 1,597 1,680 1,336 2,119 OPTION TRANSACTIONS5 By type of underlying securities U.S. government securities 27 Bills 102 2 8 0 0 30 0 5 158 33 151 0 Coupon securities 28 Maturing in less than 3.5 years 1,596 1,014 874 1,528 713 614 794 1,010 1,276 598 956 921 29 Maturing in 3.5 to 7.5 years ... 300 287 196 116 112 363 184 165 117 125 95 200 30 Maturing in 7.5 to 15 years 226 308 226 288 261 290 171 127 165 277 289 226 31 Maturing in 15 years or more.. 2,659 1,786 2,249 1,829 1,737 2,520 2,492 2,563 1,854 3,130 2,903 1,116 Federal agency securities Debt 32 Maturing in less than 3.5 years 2 1 3 1 0 4 4 8 0 4 0 0 33 Maturing in 3.5 to 7.5 years... 0 0 0 0 0 0 0 0 0 0 0 0 34 Maturing in 7.5 years or more 1 0 0 1 0 0 0 0 0 2 0 1 Mortgage-backed 35 Pass-throughs 365 297 333 274 588 359 196 195 240 224 212 113 36 All others 1 0 9 0 0 29 10 0 0 0 0 0 1. Transactions are market purchases and sales of securities as reported to the Stripped securities are reported at market value by maturity of coupon or corpus. Federal Reserve Bank of New York by the U.S. government securities dealers on 3. Includes securities such as CMOs, REMICs; IOs, and POs. its published list of primary dealers. Averages for transactions are based on the 4. Futures transactions are standardized agreements arranged on an exchange. number of trading days in the period. Immediate, forward, and future transactions Forward transactions are agreements made in the over-the-counter market that are reported at principal value, which does not include accrued interest; option specify delayed delivery. All futures transactions are included regardless of time transactions are reported at the face value of the underlying securities. to delivery. Forward contracts for U.S. government securities and federal agency Dealers report cumulative transactions for each week ending Wednesday. debt securities are included when the time to delivery is more than five days. 2. Transactions for immediate delivery include purchases or sales of securities Forward contracts for mortgage-backed securities are included when the time to (other than mortgage-backed agency securities) for which delivery is scheduled in delivery is more than thirty days. five business days or less and "when-issued" securities that settle on the issue 5. Options transactions are purchases or sales of put and call options, whether date of offering. Transactions for immediate delivery of mortgage-backed securities arranged on an organized exchange or in the over-the-counter market and include include purchases and sales for which delivery is scheduled in thirty days or less. options on futures contracts on U.S. government and federal agency securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A31 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars Item Feb. Mar. Apr. Mar. 27 Apr. 3 Apr. 10 Apr. 17 Apr. 24 May 1 May 8 May 15 May 22 Positions NET IMMEDIATE By type of security U.S. government securities 1 Bills 12,610 12,824 8,014 6,796 16,015 14,827 9,146 3,347 188 2,692 -2,075 3,381 Coupon securities 2 Maturing in less than 3.5 years 7,542 1,564 3,892 3,231 3,090 4,031 4,246 3,770 3,859 559 -5,655 -2,858 3 Maturing in 3.5 to 7.5 years... -3,914 882 3,735 2,940 3,191 5,765 3,869 2,574 2,835 2,606 811 681 4 Maturing in 7.5 to 15 years -5,149 -4,928 -6,301 -5,640 -5,437 -6,691 -5,799 -5,925 -7,303 -4,544 -4,085 -4,438 5 Maturing in 15 years or more.. -12,599 -16,065 -12,982 -16,007 -15,326 -13,437 -12,880 -11,700 -12,892 -13,745 -12,787 -12,801 Federal agency securities Debt 6 Maturing in less than 3.5 years 5,128 4,743 3,547 4,022 3,512 3,035 4,044 4,048 2,995 5,146 4,377 5,562 7 Maturing in 3.5 to 7.5 years... 2,212 2,620 2,466 2,509 2,763 2,584 2,267 2,354 2,543 2,916 2,441 2,293 8 Maturing in 7.5 years or more. 7,153 6,267 5,324 5,936 5,946 5,593 5,441 4,908 5,047 5,193 4,699 4,748 Mortgage-backed 9 Pass-throughs 24,668 23,988 24,655 23,211 21,600 24,628 25,288 26,922 22,831 28,555 28,850 29,391 10 All others 10,599 9,000 9,373 8,281 8,865 9,150 9,433 8,465 10,876 10,545 10,304 9,759 Other money market instruments 11 Certificates of deposit 2,821 2,404 2,336 2,256 2,364 2,170 2,027 2,390 2,813 2,240 2,820 2,188 12 Commercial paper 6,020 5,769 6,315 5,174 6,166 5,811 6,746 4,397 8,711 5,630 6,507 4,907 13 Bankers' acceptances 1,020 908 1,509 739 1,155 744 1,412 1,844 2,302 1,424 1,928 1,104 FUTURE AND FORWARD5 By type of deliverable security U.S. government securities 14 Bills -15,684 -9,921 -12,209 -9,479 -10,507 -11,485 -11,739 -11,441 -15,348 -16,786 -19,543 -19,811 Coupon securities 15 Maturing in less than 3.5 years -1,684 -1,137 -1,044 -1,261 -799 -1,315 -1,476 -898 -515 743 1,076 607 16 Maturing in 3.5 to 7.5 years... -2,095 -1,194 -1,688 -1,590 -1,746 -2,467 -1,986 -1,384 -759 -835 -1,053 -1,557 17 Maturing in 7.5 to 15 years -495 -181 -200 -199 -559 227 -479 -398 39 -241 -304 -538 18 Maturing in 15 years or more.. -4,531 -3,726 -6,577 -5,126 -4,731 -5,631 -8,393 -7,020 -5,967 -6,926 -3,483 -3,224 Federal agency securities Debt 19 Maturing in less than 3.5 years 218 80 42 214 15 -31 -235 191 292 344 281 7 20 Maturing in 3.5 to 7.5 years... 120 123 158 54 11 189 297 97 104 19 0 8 21 Maturing in 7.5 years or more. -38 -29 -20 -62 -26 -48 -22 -86 95 -128 14 62 Mortgage-backed 22 Pass-throughs -14,009 -9,464 -11,134 -7,738 -7,401 -11,506 -11,270 -14,180 -8,853 -13,080 -18,049 -16,435 23 All others -674 502 1,588 1,080 1,696 1,833 1,120 2,323 939 781 1,092 857 Other money market instruments 24 Certificates of deposit 17,877 5,000 3,267 6,653 1,673 -3,127 1,315 16,821 -2,014 2,722 -11,121 -23,940 25 Commercial paper 0 -19 64 -50 29 0 0 121 166 100 215 149 26 Bankers' acceptances 0 0 0 0 0 0 0 0 0 0 0 0 Financing6 Reverse repurchase agreements 77 Overnight and continuing 166,419 179,145 184,273 176,475 172,254 181,215 188,286 175,030 199,952 118866,,994455 221133,,552244 118833,,440066 28 Term 238,768 224,668 230,965 206,381 221,417 232,991 231,902 236,166 226,216 238,628 218,712 232,609 79 Overnight and continuing 273,462 280,236 280,196 272,972 274,768 279,230 286,232 277,160 280,539 257,643 285,047 272,492 30 Term 206,983 195,158 201,866 183,270 182,319 199,820 209,260 205,428 201,243 219,019 205,488 220,630 Securities borrowed 31 Overnight and continuing 50,385 52,701 51,440 57,827 54,215 52,139 49,855 49,416 53,447 53,893 53,279 66,698 32 Term 23,369 23,796 20,621 23,426 21,236 20,588 20,600 21,075 19,848 19,441 18,777 18,817 Securities lent 33 Overnight and continuing 6,497 6,833 6,538 7,734 6,660 6,348 6,442 6,504 6,851 7,038 6,979 7,516 34 Term 931 982 874 1,335 780 645 860 1,477 499 699 815 736 Collateralized loans 35 Overnight and continuing 5,109 4,198 4,122 3,919 3,965 3,939 4,293 3,974 4,386 3,903 4,515 4,227 36 Term 1,599 1,605 1,967 1,600 1,619 1,976 2,002 2,014 2,036 2,080 1,781 2,160 MEMO: Matched book7 Reverse repurchases 37 Overnight and continuing 109,746 116,036 116,928 119,242 110,214 115,048 118,169 109,659 129,509 119,133 134,482 122,271 38 Term 195,243 180,364 192,791 168,109 174,141 194,190 196,699 198,773 188,946 198,005 177,319 186,329 39 Overnight and continuing 144,722 148,269 154,692 140,818 146,813 152,413 155,338 149,403 166,706 145,283 155,959 148,311 40 Term 158,034 144,928 153,202 136,535 133,349 147,247 161,308 157,590 155,498 170,691 158,560 167,094 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 • August 1991 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1990 1991 Agency 1987 1989 1990 Nov. Dec Jan. Feb. Mar. 1 Federal and federally sponsored agencies 341,386 381,498 411,805 434,668 430,842 434,668 445,430 441,440 437,847 2 Federal agencies 37,981 35,668 35,664 42,159 42,191 42,159 42,141 42,191 41,149 3 Defense Department' 13 8 7 7 7 7 7 7 7 4 Export-Import Bank2'3 11,978 11,033 10,985 11,376 11,346 11,376 11,376 11,376 11,186 5 Federal Housing Administration 183 150 328 393 387 393 329 361 370 6 Gove c r e n rt m if e i n c t a t N es a tional Mortgage Association participation 1,615 0 0 0 0 0 0 0 0 7 Postal Service6 6,103 6,142 6,445 6,948 6,948 6,948 6,948 6,948 6,948 8 Tennessee Valley Authority 18,089 0 18,335 0 17,899 0 23,435 0 23,510 0 23,435 0 23,481 0 23,499 0 22,638 0 9 United States Railway Association 10 Federally sponsored agencies7 303,405 345,830 375,407 392,509 388,651 392,509 403,289 399,249 396,698 11 Federal Home Loan Banks 115,727 135,836 136,108 117,895 116,627 117,895 115,402 112,874 113,311 12 Federal Home Loan Mortgage Corporation 17,645 22,797 26,148 30,941 30,035 30,941 33,157 32,640 31,425 13 Federal National Mortgage Association 97,057 105,459 116,064 123,403 122,257 123,403 125,849 125,974 124,885 14 Farm Credit Banks 55,275 53,127 54,864 53,590 53,469 53,590 53,717 52,480 51,890 15 Student Loan Marketing Association 16,503 22,073 28,705 34,194 33,777 34,194 35,736 35,854 35,761 1 1 1 6 7 8 F R F i a e n r s a m o n l c u C i t n r io g e n d C it F o u F rp n in o d a r in a n g t c i i o a C n l o A rp s o s r is a t t a io n n c e Corporation11 1,20 0 0 0 5,8 6 5 9 0 0 0 8 4 , , 1 5 8 7 2 4 0 2 7 2 8 3 1 , , , 1 0 2 7 5 6 0 5 1 2 8 3 1 , , , 1 0 2 7 5 6 0 5 1 2 8 3 1 , , , 1 0 2 7 5 6 0 5 1 2 8 9 1 , , , 1 9 2 7 9 6 0 6 1 2 8 9 1 , , , 1 9 2 7 9 6 0 6 1 29 8 1 , , , 9 1 2 9 7 6 6 0 1 MEMO 19 Federal Financing Bank debt13 152,417 142,850 134,873 179,083 177,620 179,083 181,062 181,714 181,907 Lending to federal and federally sponsored agencies 20 Export-Import Bank3 11,972 11,027 10,979 11,370 11,340 11,370 11,370 11,370 11,180 21 Postal Service" 5,853 5,892 6,195 6,698 6,698 6,698 6,698 6,698 6,698 22 Student Loan Marketing Association 4,940 4,910 4,880 4,850 4,850 4,850 4,850 4,850 4,850 23 Tennessee Valley Authority 16,70 0 9 16,955 0 16,519 0 14,055 0 14,130 0 14,055 0 14,101 0 14,119 0 13,258 0 24 United States Railway Association Other Lending14 25 Farmers Home Administration 59,674 58,496 53,311 52,324 52,324 52,324 52,169 52,544 52,669 26 Rural Electrification Administration 21,191 19,246 19,265 18,890 18,968 18,890 18,906 18,906 18,904 27 Other 32,078 26,324 23,724 70,896 69,310 70,896 72,968 73,227 74,348 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. The FFB, which began operations in 1974, is authorized to purchase or sell and Urban Development; Small Business Administration; and the Veterans obligations issued, sold, or guaranteed by other federal agencies. Since FFB Administration. incurs debt solely for the purpose of lending to other agencies, its debt is not 6. Off-budget. included in the main portion of the table in order to avoid double counting. 7. Includes outstanding noncontingent liabilities: notes, bonds, and deben- 14. Includes FFB purchases of agency assets and guaranteed loans; the latter tures. Some data are estimated. contain loans guaranteed by numerous agencies with the guarantees of any 8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, particular agency being generally small. The Farmers Home Administration item shown in line 17. consists exclusively of agency assets, while the Rural Electrification Administra- 9. Before late 1981, the Association obtained financing through the Federal tion entry contains both agency assets and guaranteed loans. Financing Bank (FFB). Borrowing excludes that obtained from the FFB, which is shown on line 22. 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May 1 All issues, new and refunding1 114,522 113,646 120,339 8,512 9,961 12,250 7,230 11,335 10,864 10,916 13,383 Type of issue 30,312 35,774 39,610 3,530 3,024 3,536 2,343 4,838 4,219 3,771 4,541 84,210 77,873 81,295 4,982 6,937 8,714 4,887 6,497 6,645 7,145 8,735 Type of issuer 8,830 11,819 15,149 1,470 1,337 1,396 713 2,027 1,195 1,199 1,856 5 Special district and statutory authority2 74,409 71,022 72,661 4,512 5,879 7,032 4,563 4,903 6,599 6,604 8,899 6 Municipalities, counties, and townships 31,193 30,805 32,510 2,530 2,745 3,822 1,954 4,405 3,070 3,113 2,628 7 Issues for new capital, total 79,665 84,062 103,235 7,936 9,058 10,707 6,977 10,403 9,675 10,156 12,842 Use of proceeds 15,021 15,133 17,042 1,743 1,009 1,418 1,079 1,579 2,583 2,001 2,082 6,825 6,870 11,650 1,069 727 2,008 711 146 421 1,305 1,496 8,496 11,427 11,739 806 1,301 776 1,196 2,046 1,886 2,171 1,566 19,027 16,703 23,099 1,153 1,992 2,001 891 698' 2,140 921 3,100 5,624 5,036 6,117 497 540 933 607 768 554 319 667 24,672 28,894 34,607 2,668 4,392 3,571 2,493 4,775 2,091 3,439 3,931 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 TTyyppee ooff iissssuuee oorr iissssuueerr,, 11998888 11998899 11999900 oorr uussee Sept. Oct. Nov. Dec. Jan. Feb. Mar.' Apr. 1 All issues1 410,894' 376,744' 235,461' 14,987 20,535' 25,058 21,044' 17,303' 30,373' 35,523 30,813 2 Bonds2 353,093' 318,873' 235,461' 14,561 19,573' 23,823 19,255' 16,407' 28,571' 31,574 25,500 Type of offering 202,215' 181,393' 188,969' 12,652 17,708' 22,117 18,579' 15,753' 25,510' 29,274 23,000 4 Private placement, domestic3 127,700 114,629 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5. Sold abroad 23,178 22,851 23,054 1,909 1,865 1,706 676 654 3,061 2,300 2,500 IInndduussttrryy ggrroouupp 66 MMaannuuffaaccttuurriinngg 70,306 76,345 38,248' 2,598 3,531 6,593 2,831' 3,375' 7,960' 6,711 6,500 62,790 49,726 11,098 138 548 821 1,061 1,408 1,876' 1,775 2,200 8888 TTTTrrrraaaannnnssssppppoooorrrrttttaaaattttiiiioooonnnn 10,275 10,105 4,926 533 230 457 351 711 563 985 453 9999 PPPPuuuubbbblllliiiicccc uuuuttttiiiilllliiiittttyyyy 19,579 17,130 13,893 928 796 2,209 2,032 689' l,39T 506 2,050 11110000 CCCCoooommmmmmmmuuuunnnniiiiccccaaaattttiiiioooonnnn 5,593 8,461 4,876' 250 378 693 user 97 669' 988 1,000 11111111 RRRReeeeaaaallll eeeessssttttaaaatttteeee aaaannnndddd ffffiiiinnnnaaaannnncccciiiiaaaallll 184,548' 157,107' 138,987' 10,113 14,09c 13,050 11,601 10,127' 16,105' 20,609 13,297 12 Stocks2 57,802 57,870 n.a. 426 962 1,235 1,789 896 1,802 3,949 5,313 Type 6,544 6,194 3,998 100 550 265 175 0 150 1,233 543 35,911 26,030 19,443 327 412 970 1,614 896 1,652 2,716 4,771 15 Private placement3 15,346 25,647 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Industry group 16 Manufacturing 7,608 9,308 n.a. 0 60 154 46 60 183 564 1,796 8,449 7,446 5,026 172 194 42 110 18 546 1,096 1,521 1188 TTrraannssppoorrttaattiioonn 1,535 1,929 126 0 7 0 5 242 0 249 416 1199 PPuubblliicc uuttiilliittyy 1,8 5 9 1 8 5 3 1 , , 0 9 9 0 0 4 4,2 4 2 1 9 6 3 0 9 297 0 462 0 288 6 n. 2 a 1 .r 8 335 0 354 0 7 0 1 21 Real estate and financial 37,798 34,028 11,055 215 400 574 1,327 359 737 1,686 1,510 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 • August 1991 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Asset Position Millions of dollars 1990 1991 IItteemm 11998899 11999900 Sept. Oct. Nov. Dec. Jan. Feb. Mar/ Apr. INVESTMENT COMPANIES1 1 Sales of own shares2 306,445 345,780 23,387 27,511 25,583 34,553 38,012 30,605 31,597 40,329 2 Redemptions of own shares3 272,165 289,573 21,053 23,112 22,085 29,484 27,648 23,390 25,372 32,875 3 Net sales 34,280 56,207 2,334 4,399 3,498 5,069 10,364 7,215 6,226 7,454 4 Assets4 553,871 570,744 535,787 538,306 557,676 570,744 590,296 616,472 632,052 646,703 44,780 48,638 51,128 51,847 52,829 48,638 53,549 53,899 52,895 53,103 6 Other 509,091 522,106 484,659 486,459 504,847 522,106 536,747 562,573 579,154 593,600 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. 1989 1990 1991 AAccccoouunntt 11998888 11998899 11999900 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1 Corporate profits with inventory valuation and capital consumption adjustment 337.6 331111..66 298.3 321.4 330066..77 229900..99 296.8 330066..66 330000..77 288.9 288.0 316.7 307.7 304.7 314.6 291.4 289.8 296.9 299.3 318.5 304.1 282.7 136.2 135.1 132.1 140.8 127.8 123.5 129.9 133.1 139.1 126.5 115.1 180.5 172.6 172.5 173.8 163.6 166.3 167.1 166.1 179.4 177.6 167.6 110.0 123.5 133.9 122.1 125.0 127.7 130.3 133.0 135.1 137.2 137.5 6 Undistributed profits 70.5 49.1 38.7 51.7 38.6 38.6 36.8 33.2 44.3 40.4 30.2 7 Inventory valuation -27.0 -21.7 -11.4 -23.1 -6.1 -14.5 -11.4 -.5 -19.8 -13.8 8.3 8 Capital consumption adjustment 47.8 25.5 4.9 29.9 21.4 15.6 11.3 7.7 2.0 -1.4 -3.0 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 Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 507.40 532.96 547.23' 519.58 532.45 535.49 534.86 529.02 535.32 544.16 553.52 Manufacturing 82.56 82.99 80.06' 83.41 86.35 84.34 82.67 78.62 81.53 81.53 79.71 101.24 109.79 110.11' 108.47 105.02 110.82 111.81 111.52 108.58 109.58 111.74 Nonmanufacturing 9.21 9.87 9.88' 9.38 9.58 9.84 9.98 10.09 9.85 10.05 9.96 Transportation 6.26 6.41 5.44' 6.80 6.45 6.66 5.60 6.90 5.60 5.15 5.81 6 Air 6.73 8.98 11.43' 5.75 9.35 9.36 10.05 7.17 11.27 12.60 12.14 7 Other 5.85 6.20 7.47' 5.69 6.33 5.84 5.76 6.88 6.71 7.50 7.45 Public utilities 44.81 43.98 45.92' 44.66 43.37 42.62 43.63 46.31 43.21 47.10 46.16 21.47 23.02 23.45' 21.15 22.34 21.65 23.85 24.22 24.18 22.65 23.34 229.28 241.72 253.48' 234.25 243.66 244.37 241.51 237.32 244.39 248.00 257.22 •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; not seasonally adjusted 1989 1990 AAccccoouunntt 11998877 11998888 11998899 Q2 Q3 Q4 Ql Q2 Q3 Q4 ASSETS Accounts receivable, gross2 141.1 146.2 140.8 143.9 146.3 140.8 137.9 138.6 140.9 137.4 207.4 236.5 256.0 250.9 246.8 256.0 262.9 274.8 275.4 288.5 39.5 43.5 48.9 47.1 48.7 48.9 52.1 55.4 57.7 59.9 388.1 426.2 445.8 441.9 441.8 445.8 452.8 468.8 474.0 485.9 Less: 45.3 50.0 52.0 52.2 52.9 52.0 51.9 54.3 55.1 56.6 6.8 7.3 7.7 7.5 7.7 7.7 7.9 8.2 8.6 8.9 336.0 368.9 386.1 382.2 381.3 386.1 393.0 406.3 410.3 420.4 58.3 72.4 91.6 81.4 85.2 91.6 92.5 95.5 102.8 104.4 339944..22 441.3 477.6 463.6 466.4 477.6 485.5 501.9 513.1 524.8 LIABILITIES 16.4 15.4 14.5 12.1 12.2 14.5 13.9 15.8 15.6 18.6 128.4 142.0 149.5 149.0 147.2 149.5 152.9 152.4 148.6 152.7 Debt 28.0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 137.1 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 50.6 63.8 59.8 60.3 63.8 70.5 72.8 82.0 77.3 137.9 147.8 140.5 145.1 147.8 145.7 153.0 156.6 157.4 52.8 59.8 62.6 63.5 61.8 62.6 61.7 66.1 68.7 78.7 3311..55 3355..66 3399..44 38.8 39.8 39.4 40.7 41.8 41.6 40.2 339944..22 441.3 477.6 463.6 466.4 477.6 485.5 501.9 513.1 524.8 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 Type 11998888 11998899 11999900 Nov. Dec. Jan. Feb. Mar. Apr. 1 Total 234,891 258,957 292,638 289,335 292,638 293,383 294,284 294,225 294,569 Retail financing of installment sales 2 Automotive 37,210 39,479 38,110 38,475 38,110 38,016 37,548 36,649 36,652 3 Equipment 28,185 29,627 31,784 30,908 31,784 31,956 32,058 32,332 32,034 4 Pools of securitized assets2 n.a. 698 951 927 951 911 879 828 777 Wholesale 5 Automotive 32,953 33,814 32,283 32,905 32,283 32,404 31,428 30,329 30,066 6 Equipment 5,971 6,928 11,569 10,874 11,569 11,299 11,108 10,880 10,937 7 All other 9,357 9,985 9,126 9,451 9,126 9,366 9,142 8,868 8,666 8 Pools of securitized assets2 n.a. 0 2,950 2,841 2,950 2,836 3,353 3,354 2,905 Leasing 9 Automotive 24,693 26,804 39,129 31,833 39,129 38,921 38,922 39,279 39,707 10 Equipment 57,658 68,240 75,626 80,818 75,626 76,841 79,052 80,969 82,750 11 Pools of securitized assets2 n.a. 1,247 1,849 1,884 1,849 1,854 1,810 1,868 1,765 12 Loans on commercial accounts receivable and factored commercial accounts receivable 17,687 18,511 22,475 21,553 22,475 21,891 22,084 21,666 21,265 13 All other business credit 21,176 23,623 26,784 26,866 26,784 27,089 26,899 27,204 27,045 Net change (during period) 14 Total 28,900 24,067 33,681 1,712 3,303 745 901 -59 345 Retail financing of installment sales 15 Automotive 1,070 2,267 -1,369 -690 -365 -94 -468 -900 4 16 Equipment 3,108 1,442 2,157 241 877 171 103 274 -298 17 Pools of securitized assets2 n.a. -26 253 25 24 -40 -32 -51 -51 Wholesale 18 Automotive 2,883 862 -1,531 -1,238 -622 121 -975 -1,100 -263 19 Equipment 393 958 4,641 122 695 -270 -192 -228 57 20 All other 1,029 628 -860 -44 -325 240 -224 -275 -201 21 Pools of securitized assets2 n.a. 0 2,95c 649 109 -114 517 1 -449 Leasing 22 Automotive 2,596 2,110 12,326 298 7,2% -209 1 358 428 23 Equipment 14,166 10,581 7,385 1,105 -5,192 1,215 2,211 1,917 1,781 24 Pools of securitized assets2 n.a. 526 602 160 -35 5 -44 58 -103 25 Loans on commercial accounts receivable and factored commercial accounts receivable -484 826 3,964 793 922 -585 194 -418 -401 26 All other business credit 4,134 3,163 3,163 291 -82 305 -190 305 -158 1. These data also appear in the Board's G.20 (422) release. For address, see 2. Data on pools of securitized assets are not seasonally adjusted. inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic Financial Statistics • August 1991 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1990 1991 Nov. Dec. Jan. Feb. Mar. Apr. May Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms1 1 Purchase price (thousands of dollars) 150.0 159.6 153.2 151.5 156.3 148.3 153.2 136.7 151.4 146.8 2 Amount of loan (thousands of dollars) 110.5 117.0 112.4 111.2 115.4 112.3 113.8 100.4 114.5 109.2 3 Loan/price ratio (percent) 75.5 74.5 74.8 75.0 74.9 77.2 76.3 74.6 76.4 75.2 4 Maturity (years) 28.0 28.1 27.3' 27.1 28.6 28.1 28.3 25.7 26.8 26.1 5 Fees and charges (percent of loan amount)2 2.19 2.06 1.93 1.68 1.85 1.75 1.73 1.59 2.12 1.54 6 Contract rate (percent per year) 8.81 9.76 9.68 9.61 9.45 9.36 9.28 9.16 9.24 9.26 Yield (percent per year) 7 OTS series3 9.18 10.11 10.01 9.90 9.76 9.65 9.57 9.43 9.60 9.52 8 HUD series4 10.30 10.21 10.08 9.86 9.66 9.53 9.49 9.49 9.51 9.46 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (HUD series)5 10.49 10.24 10.17 9.81 9.66 9.58 9.57 9.61 9.61 9.62 10 GNMA securities6 9.83 9.71 9.51 9.46 9.08 8.87 8.66 8.75 8.62 8.65 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 101,329 104,974 113,329 115,085 116,628 117,445 118,284 119,1% 120,074 121,798 12 FHA/V A-insured 19,762 19,640 21,028 21,530 21,751 21,854 21,947 21,976 21,972 21,609 13 Conventional 81,567 85,335 92,302 93,555 94,877 95,591 96,337 97,220 98,102 100,189 Mortgage transactions (during period) 14 Purchases 23,110 22,518 23,959 2,078 2,410 1,781 1,792 1,987 2,942 4,450 Mortgage commitments7 15 Issued (during period)8 n.a. n.a. n.a. 2,426 2,104 1,889 1,779 3,087 3,880 3,506 16 To sell (during period)9 n.a. n.a. n.a. 0 0 2 0 109 839 1,066 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)9 17 Total 15,105 20,105 20,419 21,301 21,857 22,300 22,855 23,221 n.a. n.a. 18 FHA/VA 620 590 547 524 518 511 503 499 n.a. n.a. 19 Conventional 14,485 19,516 19,871 20,777 21,339 21,789 22,352 22,722 n.a. n.a. Mortgage transactions (during period) 20 Purchases 44,077 78,588 75,517 6,981 10,637 5,018 5,217 4,549 n.a. n.a. 21 Sales 39,780 73,446 73,817 6,314 9,918 4,438 4,549 6,183 6,226 7,694 Mortgage commitments10 22 Contracted (during period) 66,026 88,519 102,401 10,164 12,938 8,437 5,579 5,936 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 Housing Finance assuming prepayment in 12 years on pools of 30-year FHA/VA mortgages Board in cooperation with the Federal Deposit Insurance Corporation. carrying the prevailing ceiling rate. Monthly figures are averages of Friday figures 2. Includes all fees, commissions, discounts, and "points" paid (by the from the Wall Street Journal. borrower or the seller) to obtain a loan. 7. Includes some multifamily and nonprofit hospital loan commitments in 3. Average effective interest rates on loans closed, assuming prepayment at addition to 1- to 4-family loan commitments accepted in FNMA's free market the end of 10 years. auction system, and through the FNMA-GNMA tandem plans. 4. Average contract rates on new commitments for conventional first mort- 8. Does not include standby commitments issued, but includes standby gages; from Department of Housing and Urban Development. commitments converted. 5. Average gross yields on 30-year, minimum-downpayment, Federal Housing 9. Includes participation as well as whole loans. Administration-insured first mortgages for immediate delivery in the private 10. Includes conventional and government-underwritten loans. FHLMC's secondary market. Based on transactions on first day of subsequent month. Large mortgage commitments and mortgage transactions include activity under mortgage/ monthly movements in average yields may reflect market adjustments to changes securities swap programs, while the corresponding data for FNMA exclude swap in maximum permissable contract rates. activity. 6. Average net yields to investors on Government National Mortgage Asso- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Real Estate A3 7 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1990 1991 Type of holder, and type of property 1989 1990' Ql Q2 Q3 Q4' 1 AU holders 3,270,118r 3,556,370' 3,856,205 3,696,882' 3,760,480' 3,815,220' 3,856,205 3,883,700 2 1- to 4-family 2,201,231' 2,429,689' 2,708,951 2,554,496' 2,619,522' 2,669,613' 2,708,951 2,740,122 3 Multifamily 291,405r 303,416' 304,004 305,838' 301,789' 302,993' 304,004 303,543 4 Commercial 692,236' 739,240' 759,306 752,688' 755,212' 758,362' 759,306 756,349 5 Farm 85,247' 84,025' 83,943 83,861' 83,957' 84,252' 83,943 83,686 6 Selected financial institutions 1,831,472' 1,931,537' 1,912,099 1,939,005' 1,940,366' 1,932,978' 1,912,099 1,890,344 7 Commercial banks 674,003' 767,069' 843,136 786,802' 814,598' 830,868' 843,136 855,256 8 1- to 4-family 334,367' 389,632' 454,851 405,009' 431,115' 445,218' 454,851 462,975 9 Multifamily 33,912' 38,876' 37,116 37,913' 38,420' 37,898' 37,116 38,021 10 Commercial 290,254' 321,906' 333,943 327,110' 327,930' 330,426' 333,943 336,803 11 Farm 15.47C 16,656' 17,225 16,771' 17,133' 17,326' 17,225 17,457 12 Savings institutions3 924,606 910,254 801,628 891,921 860,903 836,047' 801,628 771,948 13 1- to 4-family 671,722 669,220 600,154 658,405 642,110 626,297' 600,154 584,639 14 Multifamily 110,775 106,014 91,806 103,841 97,359 94,79(f 91,806 85,654 15 Commercial 141,433 134,370 109,168 129,056 120,866 114,430' 109,168 101,187 16 Farm 676 650 500 619 568 530 500 468 17 Life insurance companies 232,863 254,214 267,335 260,282 264,865 266,063 267,335 263,139 18 1- to 4-family 11,164 12,231 12,052 12,525 12,740 12,773 12,052 11,514 19 Multifamily 24,560 26,907 29,406 27,555 28,027 28,100 29,406 28,847 20 Commercial 187,549 205,472 215,121 210,422 214,024 214,585 215,121 212,018 21 Farm 9,590 9,604 10,756 9,780 10,075 10,605 10,756 10,760 22 Finance companies 37,846 45,476 48,777 45,808 47,104 49,784 48,777 49,658 23 Federal and related agencies 200,570 209,498 250,762 216,146 227,818 242,695 250,762 262,167 24 Government National Mortgage Association.. 26 23 21 22 21 21 21 20 25 1- to 4-family 2 0 6 2 0 3 2 0 1 2 0 2 2 0 1 2 0 1 21 0 2 0 0 26 Multifamily 27 Farmers Home Administration5 42,018 41,176 41,439 41,125 41,175 41,269 41,439 41,545 28 1- to 4-family 18,347 18,422 18,527 18,419 18,434 18,476 18,527 18,578 29 Multifamily 8,513 9,054 9,640 9,199 9,361 9,477 9,640 9,792 30 Commercial 5,343 4,443 4,690 4,510 4,545 4,608 4,690 4,754 31 Farm 9,815 9,257 8,582 8,997 8,835 8,708 8,582 8,421 32 Federal Housing and Veterans Administration 5,973 6,087 8,801 6,355 6,792 7,938 8,801 9,492 33 1- to 4-family 2,672 2,875 3,593 3,027 3,054 3,248 3,593 3,600 34 Multifamily 3,301 3,212 5,208 3,328 3,738 4,690 5,208 5,891 35 Federal National Mortgage Association 103,013 110,721 116,628 112,353 112,855 113,718 116,628 118,210 36 1- to 4-family 95,833 102,295 106,081 103,300 103,431 103,722 106,081 107,053 37 Multifamily 7,180 8,426 10,547 9,053 9,424 9,996 10,547 11,157 38 Federal Land Banks 32,115 29,640 29,416 29,325 29,595 29,441 29,416 29,253 39 1- to 4-family 1,890 1,210 1,838 1,197 1,741 1,766 1,838 1,884 40 Farm 30,225 28,430 27,577 28,128 27,854 27,675 27,577 27,368 41 Federal Home Loan Mortgage Corporation .. 17,425 21,851 21,857 19,823 19,979 20,508 21,857 21,947 4 4 2 3 M 1- u to lt i 4 fa -f m a i m ly i ly 1 2 5 , , 3 0 4 7 8 7 1 3 8 , , 6 2 0 4 3 8 1 2 9 , , 6 1 7 8 2 5 1 3 6 , , 0 7 5 7 1 2 1 2 7 , , 6 3 6 1 3 6 1 2 7 , , 6 8 9 1 7 0 1 2 9 , , 6 1 7 8 2 5 1 2 9 , , 4 4 8 6 7 0 44 Mortgage pools or trusts6 811,847 946,766 1,103,950 984,811 1,024,893 1,060,640 1,103,950 1,138,889 45 Government National Mortgage Association.. 340,527 368,367 403,613 376,962 385,456 394,859 403,613 412,982 46 1- to 4-family 331,257 358,142 391,505 366,300 374,960 384,474 391,505 400,322 47 Multifamily 9,270 10,225 12,108 10,662 10,496 10,385 12,108 12,660 48 Federal Home Loan Mortgage Corporation .. 226,406 272,870 316,359 281,736 295,340 301,797 316,359 328,305 49 1- to 4-family 219,988 266,060 308,369 274,084 287,232 293,721 308,369 319,978 50 Multifamily 6,418 6,810 7,990 7,652 8,108 8,077 7,990 8,327 5 5 5 5 5 1 2 3 4 5 F F e a M d r 1 1 m - e - u r t t e o o l a t r l i s 4 4 f N a - - H f f m a a a o t i m m i l m o y i i e n l l y y a A l d M m o i r n t i g s a t g ra e ti A on s s , o ciation 1 1 7 7 5 8 2 , , , 9 2 3 1 5 1 3 2 0 0 9 1 0 6 4 2 2 2 1 8 8 9 , , , 6 2 5 3 5 7 8 2 2 5 0 7 0 1 2 2 9 9 8 9 1 , , , 8 6 1 3 3 9 6 1 3 9 4 0 6 7 2 2 4 3 8 6 7 , , , 3 4 9 9 7 1 7 2 1 5 0 6 6 0 2 2 6 5 3 8 4 , , , 3 8 5 3 1 1 7 1 0 1 9 0 2 9 2 2 8 7 1 8 3 , , , 4 3 8 7 3 0 7 1 1 5 6 0 0 8 2 2 9 9 8 9 1 , , , 8 6 1 3 3 9 6 1 3 9 4 6 0 7 3 3 1 0 2 8 3 , , , 1 5 5 0 4 5 6 1 1 7 4 0 3 6 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 4 3 0 8 2 33 6 2 2 4 6 2 3 5 1 2 3 4 0 2 2 4 9 2 2 4 6 2 2 3 4 59 Individuals and others7 426,229 468,569 589,395 556,920 567,403 578,908 589,395 592,301 60 1- to 4-family 259,971 294,517 401,685 374,143 382,343 393,027 401,685 403,791 61 Multifamily 79,209 81,634 80,808 83,666 82,040 80,636 80,808 80,448 62 Commercial 67,618 73,023 87,624 79,576 83,557 85,865 87,624 88,875 63 Farm 19,431 19,395 19,278 19,536 19,463 19,379 19,278 19,187 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 Fanners 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 • August 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 11999900 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar/ Apr. Seasonally adjusted 11 TToottaall 718,863 735,102 733,844 735,547 735,433 736.411 735,102 732,962 732,762 732,442 734,140 22 AAuuttoommoobbiillee 290,676 284,585 286,818 285,627 285,024 284.412 284,585 283,746 282,626 280,689 280,518 33 RReevvoollvviinngg 199,082 220,110 217,024 219,090 220,031 221,690 220,110 219,588 221,556 224,817 226,082 44 MMoobbiillee hhoommee 22,471 20,919 21,191 21,073 20,680 20,492 20,919 20,459 20,200 20,123 20,171 55 OOtthheerr 206,633 209,487 208,811 209,758 209,698 209,817 209,487 209,170 208,379 206,813 207,369 Not seasonally adjusted 6 Total 730,901 748,300 736,480 738,946 736,091 738,626 748,300 736,399 729,264 725,462 728,419 By major holder 7 Commercial banks 342,770 347,466 340,525 342,698 341,755 342,882 347,466 341,426 339,282 335,754 336,214 8 Finance companies 140,832 137,450 139,496 140,890 141,329 139,195 137,450 134,965 133,021 131,552 134,723 9 Credit unions 93,114 92,911 93,071 92,996 93,190 92,918 92,911 91,991 91,131 90,772 90,355 10 Retailers 44,154 43,552 39,557 38,963 38,282 39,095 43,552 40,945 38,864 38,497 38,317 11 Savings institutions 57,253 45,616 51,822 50,683 48,055 47,121 45,616 44,939 43,875 42,491 42,327 12 Gasoline companies 3,935 4,822 4,722 4,723 4,749 4,753 4,822 4,766 4,404 4,296 4,357 13 Pools of securitized assets2 .. 48,843 76,483 67,287 67,993 68,731 72,662 76,483 77,367 78,687 82,100 82,126 By major type of credit3 14 Automobile 290,705 284,813 289,371 289,169 287,304 285,379 284,813 282,214 279,913 277,798 278,274 15 Commercial banks 126,288 126,259 127,647 128,268 127,667 126,544 126,259 126,235 124,745 123,411 122,736 16 Finance companies 82,721 74,397 77,205 78,116 78,033 75,224 74,397 72,015 70,287 69,233 71,761 17 Pools of securitized assets 18,235 24,537 21,988 21,390 20,944 23,475 24,537 25,123 26,872 27,755 26,775 18 Revolving 210,310 232,370 216,633 218,279 218,337 222,643 232,370 223,606 220,714 221,400 222,713 19 Commercial banks 130,811 132,433 126,683 127,415 127,108 129,117 132,433 125,814 125,673 124,619 126,059 20 Retailers 39,583 39,029 35,101 34,528 33,867 34,657 39,029 36,510 34,509 34,179 34,013 21 Gasoline companies 3,935 4,822 4,722 4,723 4,749 4,753 4,822 4,766 4,404 4,296 4,357 22 Pools of securitized assets2 23,477 44,335 38,194 39,606 40,798 42,297 44,335 44,773 44,451 46,722 46,616 23 Mobile home 22,240 20,666 21,185 21,195 20,773 20,472 20,666 20,614 20,362 20,030 20,125 24 Commercial banks 9,112 9,763 9,338 9,263 9,274 9,199 9,763 9,748 9,730 9,632 9,565 25 Finance companies 4,716 5,252 5,358 5,423 5,400 5,364 5,252 5,367 5,330 5,328 5,574 26 Other 207,646 210,451 209,291 210,303 209,677 210,132 210,451 209,965 208,275 206,234 207,307 27 Commercial banks 76,559 79,011 76,857 77,752 77,706 78,022 79,011 79,629 79,134 78,092 77,854 28 Finance companies 53,395 57,801 56,933 57,351 57,896 58,607 57,801 57,583 57,404 56,991 57,388 29 Retailers 4,571 4,523 4,456 4,435 4,415 4,438 4,523 4,435 4,355 4,318 4,304 30 Pools of securitized assets2 7,131 7,611 7,105 6,997 6,989 6,890 7,611 7,471 7,364 7,603 8,735 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr. INTEREST RATES Commercial banks2 1 10.85 12.07 11.78 n.a. 11.62 n.a. n.a. 11.60 n.a. n.a. ? 14.68 15.44 15.46 n.a. 15.69 n.a. n.a. 15.42 n.a. n.a. 3 13.54 14.11 14.02 n.a. 13.99 n.a. n.a. 13.88 n.a. n.a. 4 17.78 18.02 18.17 n.a. 18.23 n.a. n.a. 18.28 n.a. n.a. Auto finance companies 5 12.60 12.62 12.54 12.57 12.74 12.86 12.99 13.16 13.14 13.14 6 15.11 16.18 15.99 16.12 16.07 16.04 15.70 15.90 15.82 15.82 OTHER TERMS4 Maturity (months) 7 56.2 54.2 54.6 54.6 54.6 54.7 54.9 55.2 55.2 55.4 8 46.7 46.6 46.1 46.1 46.0 45.8 47.4 47.1 47.2 47.3 Loan-to-value ratio <) 94 91 87 85 85 85 88 88 87 87 10 98 97 95 95 95 94 96 % 97 97 Amount financed (dollars) 11 11,663 12,001 12,071 11,917 11,986 12,140 12,229 12,081 12,121 11,993 1122 77,,882244 77,,995544 8,289 88,,442233 88,,449944 88,,553300 88,,660000 88,,660055 88,,776633 88,,775511 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 • August 1991 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1989 199C 1991 Q3 Q4 Qi Q2 Q3 Q4 Ql Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors.. 836.9 687.0 760.8 678.2 641.2 678.8 620.2 808.9 617.6 655.7 482.6 474.7 By sector and instrument 2 U.S. government 215.0 144.9 157.5 151.6 272.5 173.9 185.0 247.3 228.2 286.1 328.4 204.7 3 Treasury securities 214.7 143.4 140.0 150.0 264.4 166.8 189.6 217.8 222.9 287.5 329.4 228.7 4 Agency issues and mortgages .4 1.5 17.4 1.6 8.2 7.1 -4.6 29.6 5.4 -1.3 -1.0 -24.0 5 Private domestic nonfinancial sectors 621.9 542.1 603.3 526.6 368.7 504.9 435.2 561.6 389.4 369.6 154.2 270.0 6 Debt capital instruments 465.8 453.2 459.2 379.8 309.3 369.2 347.0 391.6 338.7 280.2 226.9 264.6 7 Tax-exempt obligations 22.7 49.3 49.8 30.4 18.5 34.1 19.1 12.4 24.5 28.0 9.0 7.1 8 Corporate bonds 126.8 79.4 102.9 73.7 64.5 62.7 87.4 45.2 83.7 47.7 81.6 85.2 9 Mortgages 316.3 324.5 306.5 275.7 226.4 272.4 240.5 334.0 230.5 204.5 136.3 172.4 10 Home mortgages 218.7 234.9 231.0 218.0 211.6 221.0 214.3 283.5 235.2 183.1 144.4 181.0 11 Multifamily residential 33.5 24.4 16.7 16.4 3.0 11.8 9.5 22.9 -15.7 3.8 .8 .2 12 Commercial 73.6 71.6 60.8 42.7 11.9 40.9 19.9 27.1 13.0 15.8 -8.2 -9.4 13 Farm -9.5 -6.4 -2.1 -1.5 -.1 -1.3 -3.2 .5 -1.9 1.8 -.8 .5 14 Other debt instruments 156.1 88.9 144.1 146.8 59.3 135.6 88.2 170.0 50.7 89.3 -72.7 5.4 15 Consumer credit 58.0 33.5 50.2 39.1 14.3 37.1 44.1 30.4 2.8 21.3 2.5 -23.6 16 Bank loans n.e.c 66.9 10.0 39.8 39.9 -5.0 50.8 7.7 21.1 8.8 -15.8 -34.0 38.7 17 Open market paper -9.3 2.3 11.9 20.4 9.7 16.9 -6.9 69.6 -6.2 17.3 -41.7 5.1 18 Other 40.5 43.2 42.2 47.4 40.3 30.9 43.3 48.9 45.3 66.6 .5 -14.9 19 By borrowing sector 621.9 542.1 603.3 526.6 368.7 504.9 435.2 561.6 389.4 369.6 154.2 270.0 20 State and local governments 36.2 48.8 45.6 29.6 14.6 28.6 16.5 8.9 17.7 28.5 3.1 7.1 21 Households 293.0 302.2 314.9 285.0 254.3 290.8 291.8 364.7 271.5 221.7 159.4 192.6 22 Nonfinancial business 292.7 191.0 242.8 211.9 99.8 185.4 126.9 188.0 100.2 119.4 -8.3 70.3 23 Farm -16.3 -10.6 -7.5 1.6 2.5 -2.1 8.9 6.3 -10.8 11.6 3.1 5.0 24 Nonfarm noncorporate 99.2 77.9 65.7 50.8 11.1 40.2 35.0 45.5 3.5 18.3 -23.0 -17.0 25 Corporate 209.7 123.7 184.6 159.5 86.2 147.3 83.1 136.2 107.5 89.4 11.6 82.2 26 Foreign net borrowing in United States 9.7 4.5 6.3 10.9 32.1 30.4 16.9 2.3 41.0 45.1 40.2 11.7 27 Bonds 3.1 7.4 6.9 5.3 21.6 8.1 -1.0 32.7 25.8 1.2 26.5 8.9 28 Bank loans n.e.c -1.0 -3.6 -1.8 -.1 5.9 3.7 -4.3 -6.7 -2.0 17.4 14.9 -27.7 29 Open market paper 11.5 2.1 8.7 13.3 12.3 20.7 22.2 -16.4 23.1 27.3 15.3 45.5 30 U.S. government loans -3.9 -1.4 -7.5 -7.5 -7.6 -2.1 .1 -7.3 -5.9 -.8 -16.5 -15.0 31 Total domestic plus foreign 846.6 691.5 767.1 689.1 673.3 709.2 637.1 811.2 658.6 700.8 522.8 486.4 Financial sectors 32 Total net borrowing by financial sectors 285.1 300.2 247.6 205.5 203.0 123.9 187.3 191.4 177.5 175.4 267.5 115.1 By instrument 33 U.S. government related 154.1 171.8 119.8 151.0 167.4 124.8 156.4 171.7 184.0 139.2 174.6 168.0 34 Sponsored credit agency securities 15.2 30.2 44.9 25.2 17.0 13.2 -4.7 9.7 17.1 22.3 19.0 14.5 35 Mortgage pool securities 139.2 142.3 74.9 125.8 150.3 111.6 161.1 162.0 166.8 116.9 155.5 153.5 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 35.6 -.9 30.9 19.7 -6.5 36.2 93.0 -52.9 38 Corporate bonds 82.9 78.9 51.7 36.8 50.2 26.7 39.6 35.1 68.8 20.3 76.7 37.5 39 Mortgages .1 .4 .3 .0 .8 .3 -.4 -.7 .8 2.6 .5 1.0 40 Bank loans n.e.c 4.0 -3.2 1.4 1.8 .7 2.0 4.2 -2.2 -.6 1.9 3.6 1.0 41 Open market paper 24.2 27.9 54.8 26.9 8.6 11.0 36.3 9.5 -44.6 41.9 27.7 -64.5 42 Loans from Federal Home Loan Banks 19.8 24.4 19.7 -11.0 -24.7 -41.0 -48.8 -22.0 -30.9 -30.5 -15.5 -27.9 By sector 43 285.1 300.2 247.6 205.5 203.0 123.9 187.3 191.4 177.5 175.4 267.5 115.1 44 Sponsored credit agencies 14.9 29.5 44.9 25.2 17.0 13.2 -4.7 9.7 17.1 22.3 19.0 14.5 45 Mortgage pools 139.2 142.3 74.9 125.8 150.3 111.6 161.1 162.0 166.8 116.9 155.5 153.5 46 Private financial sectors 131.0 128.4 127.8 54.5 35.6 -.9 30.9 19.7 -6.5 36.2 93.0 -52.9 47 Commercial banks -3.6 6.2 -3.0 -1.4 -1.1 3.5 -.7 -4.9 -7.9 -12.5 21.0 -22.0 48 Bank affiliates 15.2 14.3 5.2 6.2 -28.0 16.5 -3.9 -8.0 -32.1 -40.4 -31.6 -27.4 49 Savings and loan associations 20.9 19.6 19.9 -14.1 -31.2 -44.7 -56.2 -15.8 -53.5 -31.9 -23.4 -29.1 50 Mutual savings banks 4.2 8.1 1.9 -1.4 -.5 -2.3 .7 -8.3 6.5 -4.2 4.0 -2.2 51 Finance companies 54.7 40.8 67.7 46.3 56.7 23.5 52.6 25.3 27.7 96.9 76.9 -5.0 52 REITs .8 .3 3.5 -1.9 -.4 -3.1 .1 -.6 -2.3 .9 .6 .4 53 SCO Issuers 39.0 39.1 32.5 20.8 40.1 5.7 38.2 32.1 55.1 27.5 45.6 32.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A41 1.57—Continued 1989 199C 1991 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11998866 11998877 11998888 11998899 11999900'' Q3 Q4 Ql Q2 Q3 Q4 Ql All sectors 54 Total net borrowing 1,131.7 991.7 1,014.7 894.5 876.3 833.0 824.4 1,002.5 836.1 876.2 790.3 601.5 55 U.S. government securities 369.5 317.5 277.2 302.6 439.9 298.7 341.4 419.0 412.2 425.4 503.0 372.7 56 State and local obligations 22.7 49.3 49.8 30.4 18.5 34.1 19.1 12.4 24.5 28.0 9.0 7.1 57 Corporate and foreign bonds 212.8 165.7 161.5 115.8 136.3 97.6 125.9 112.9 178.3 69.3 184.8 131.6 58 Mortgages 316.4 324.9 306.7 275.7 227.1 272.7 240.1 333.3 231.3 207.1 136.8 173.3 59 Consumer credit 58.0 33.5 50.2 39.1 14.3 37.1 44.1 30.4 2.8 21.3 2.5 -23.6 60 Bank loans n.e.c 69.9 3.2 39.4 41.5 1.6 56.5 7.5 12.2 6.2 3.5 -15.6 12.1 61 Open market paper 26.4 32.3 75.4 60.6 30.7 48.5 51.6 62.6 -27.7 86.5 1.2 -13.8 62 Other loans 56.1 65.5 54.4 28.9 8.0 -12.2 -5.4 19.6 8.5 35.2 -31.4 -57.9 63 MEMO: U.S. government, cash balance .0 -7.9 10.4 -5.9 8.3 -22.7 -7.3 22.9 -38.1 21.1 27.4 51.8 Totals net of changes in U.S. government cash balances 64 Net borrowing by domestic noniinancial 836.9 694.9 750.4 684.1 632.9 701.6 627.6 786.0 655.7 634.7 455.2 422.9 65 Net borrowing by U.S. government 215.0 152.8 147.1 157.5 264.2 196.7 192.4 224.4 266.3 265.1 301.0 152.9 External corporate equity funds raised in United States 66 Total net share issues 86.8 10.9 -124.2 -63.7 11.4 -61.0 14.9 -9.4 47.3 -15.9 23.6 101.3 67 Mutual funds 159.0 73.9 1.1 41.3 61.4 57.9 72.4 47.8 71.0 46.1 80.6 87.6 68 All other -72.2 -63.0 -125.3 -105.1 -49.9 -118.9 -57.6 -57.2 -23.6 -62.0 -56.9 13.7 69 Noniinancial corporations -85.0 -75.5 -129.5 -124.2 -63.0 -146.3 -79.3 -69.0 -48.0 -74.0 -61.0 -17.0 70 Financial corporations 11.6 14.6 3.3 2.4 6.1 -.1 4.5 10.1 .6 13.0 .9 1.9 71 Foreign shares purchased in United States 1.2 -2.1 .9 16.7 6.9 27.5 17.2 1.7 23.8 -1.0 3.2 28.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • August 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' 1991 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11998866 11998877 11998888 11998899 119999CC Q3 Q4 Ql Q2 Q3 Q4 Ql 1 Total funds advanced in credit markets to domestic nonfinancial sectors 836.9 687.0 760.8 678.2 641.2 678.8 620.2 808.9 617.6 655.7 482.6 474.7 By public agencies and foreign 2 Total net advances 280.2 248.8 210.7 187.6 261.0 218.3 203.8 218.6 300.6 324.8 200.0 304.5 3 U.S. government securities 69.4 70.1 85.2 30.7 74.4 115.7 27.1 16.4 99.9 139.1 42.1 127.6 4 Residential mortgages 136.3 139.1 86.3 137.9 184.1 127.7 178.3 182.3 206.7 160.8 186.7 184.1 5 FHLB advances to thrifts 19.8 24.4 19.7 -11.0 -24.7 -41.0 -48.8 -22.0 -30.9 -30.5 -15.5 -27.9 6 Other loans and securities 54.7 15.1 19.4 30.0 27.1 15.8 47.1 41.8 24.8 55.3 -13.4 20.7 Total advanced, by sector 7 U.S. government 9.7 -7.9 -9.4 -2.4 32.9 -9.3 5.7 37.7 34.2 62.5 -2.8 31.6 8 Sponsored credit agencies 153.3 169.3 112.0 125.3 166.7 126.4 158.4 184.2 166.3 165.6 150.8 172.3 9 Monetary authorities 19.4 24.7 10.5 -7.3 8.1 -31.2 -4.6 -6.3 40.4 24.4 -25.9 53.3 10 Foreign 97.8 62.7 97.6 72.1 53.2 132.4 44.2 3.0 59.8 72.3 77.9 47.3 Agency and foreign borrowing not in line 1 11 Sponsored credit agencies and mortgage pools 154.1 171.8 119.8 151.0 167.4 124.8 156.4 171.7 184.0 139.2 174.6 168.0 12 Foreign 9.7 4.5 6.3 10.9 32.1 30.4 16.9 2.3 41.0 45.1 40.2 11.7 Private domestic funds advanced 13 Total net advances 720.5 614.5 676.2 652.5 579.7 615.7 589.7 764.2 542.0 515.2 497.4 350.0 14 U.S. government securities 300.1 247.4 192.1 271.9 365.5 183.0 314.3 402.6 312.3 286.2 460.9 245.0 15 State and local obligations 22.7 49.3 49.8 30.4 18.5 34.1 19.1 12.4 24.5 28.0 9.0 7.1 16 Corporate and foreign bonds 89.7 66.9 91.3 66.1 80.2 65.6 70.6 68.4 97.5 46.7 108.3 69.8 17 Residential mortgages 115.9 120.2 161.3 96.5 30.4 105.1 45.5 124.1 12.8 26.1 -41.5 -2.9 18 Other mortgages and loans 212.0 155.2 201.4 176.6 60.5 186.9 91.5 134.9 64.1 97.7 -54.8 3.0 19 LESS: Federal Home Loan Bank advances 19.8 24.4 19.7 -11.0 -24.7 -41.0 -48.8 -22.0 -30.9 -30.5 -15.5 -27.9 Private financial intermediation 20 Credit market funds advanced by private financial institutions 730.0 528.4 562.3 511.1 421.6 353.Y 561.9' 449.2 257.8 419.4 560.2 149.4 21 Commercial banking 198.1 135.4 156.3 177.3 120.1 183.7 184.3 188.1 126.1 102.7 63.2 119.3 22 Savings institutions 107.6 136.8 120.4 -90.9 -145.8 -135.8 -201.9 -56.6 -210.4 -168.6 -147.4 -154.2 23 Insurance and pension funds 160.1 179.7 198.7 177.9 201.0 136.1 205.1 160.8 226.8 228.3 188.2 112.6 24 Other finance 264.2 76.6 86.9 246.8 246.3 i7o.<r 374.5' 156.8 115.3 257.0 456.1 71.7 25 Sources of funds 730.0 528.4 562.3 511.1 421.6 561.9' 449.2 257.8 419.4 560.2 149.4 26 Private domestic deposits and RPs 277.1 162.8 229.2 225.2 58.3 284.4 208.0 125.0 20.4 77.8 10.1 231.4 27 Credit market borrowing 131.0 128.4 127.8 54.5 35.6 -.9 30.9 19.7 -6.5 36.2 93.0 -52.9 28 Other sources 321.8 237.1 205.3 231.4 327.7 70.4' 323.1' 304.5 243.8 305.4 457.0 -29.1 29 Foreign funds 12.9 43.7 9.3 -9.9 35.7 30.4 -20.6 46.4 14.1 121.2 -38.9 38.6 30 Treasury balances 1.7 -5.8 7.3 -3.4 5.3 -19.9 5.0 13.1 -13.4 18.2 3.4 30.1 31 Insurance and pension reserves 119.9 135.4 177.6 140.5 170.6 82.6 193.9 137.9 211.9 162.2 170.4 33.9 32 Other, net 187.3 63.9 11.0 104.2 116.1 -22.7r 144.7' 107.1 31.2 3.8 322.1 -131.6 Private domestic nonfinancial investors 33 Direct lending in credit markets 121.5 214.6 241.7 195.9 193.7 260.8' 58.7' 334.7 277.8 132.0 30.2 147.7 34 U.S. government securities 27.0 86.0 129.0 134.3 144.0 188.7' 65.8' 185.6 170.4 159.9 59.8 121.1 35 State and local obligations -19.9 61.8 53.5 28.4 -.5 39.0 12.8 -.2 12.8 15.6 -30.0 -2.2 36 Corporate and foreign bonds 52.9 23.3 -9.4 .7 9.9 -4.7 14.6 54.8 29.0 -92.1 48.0 -24.6 37 Open market paper 9.9 15.8 36.4 5.4 18.4 21.4 -64.6 61.0 42.5 7.7 -37.7 16.6 38 Other 51.7 27.6 32.2 27.1 21.9 16.4 30.1 33.5 23.0 40.9 -9.8 36.7 39 Deposits and currency 297.5 179.3 232.8 241.3 88.0 261.8 230.6 142.1 56.3 113.6 39.8 243.0 40 Currency 14.4 19.0 14.7 11.7 22.6 6.0 10.1 26.1 23.1 32.2 9.1 46.0 41 Checkable deposits 96.4 -.9 12.9 1.5 1.2 14.7 65.8 2.2 -19.4 15.1 7.0 27.9 42 Small time and savings accounts 120.6 76.0 122.4 100.5 52.5 163.1 109.1 110.7 18.2 59.7 21.4 103.2 43 Money market fund shares 43.2 28.9 20.2 85.2 61.8 116.7 65.6 72.2 4.7 110.9 59.3 128.5 44 Large time deposits -3.2 37.2 40.8 23.1 -42.7 -23.8 -13.4 -25.2 -5.5 -82.6 -57.5 13.9 45 Security RPs 20.2 21.6 32.9 14.9 -14.5 13.7 -19.2 -34.9 22.3 -25.2 -20.1 -42.2 46 Deposits in foreign countries 5.9 -2.5 -11.2 4.4 7.0 -28.6 12.4 -8.9 12.8 3.6 20.6 -34.4 47 Total of credit market instruments, deposits, and currency 419.0 393.9 474.5 437.2 281.7 522.7' 289.3' 476.8 334.1 245.6 70.0 390.7 48 Public holdings as percent of total 33.1 36.0 27.5 27.2 38.8 30.8 32.0 27.0 45.6 46.3 38.2 62.6 49 Private financial intermediation (in percent) 101.3 86.0 83.2 78.3 72.7 57.5' 95.3' 58.8 47.6 81.4 112.6 42.7 50 Total foreign funds 110.7 106.4 106.9 62.2 88.9 162.8 23.6 49.4 73.8 193.5 39.0 85.9 MEMO: Corporate equities not included above 51 Total net issues 86.8 10.9 -124.2 -63.7 11.4 -61.0 14.9 -9.4 47.3 -15.9 23.6 101.3 52 Mutual fund shares 159.0 73.9 1.1 41.3 61.4 57.9 72.4 47.8 71.0 46.1 80.6 87.6 53 Other equities -72.2 -63.0 -125.3 -105.1 -49.9 -118.9 -57.6 -57.2 -23.6 -62.0 -56.9 13.7 54 Acquisitions by financial institutions 50.9 32.0 -2.9 17.2 21.4 6.1 76.9 41.1 72.8 -66.2 37.9 43.1 55 Other net purchases 35.9 -21.2 -121.4 -80.9 -10.0 -67.1 -62.1 -50.5 -25.5 50.3 -14.2 58.2 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 1990r 1991 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11998866 11998877 11998888 11998899 Q3 Q4 Ql Q2 Q3 Q4 Ql Nonfinancial sectors 1 domestic noniinancial sectors 7,646.3 8,343.9 9,096.0 9,805.2 9,605.1 9,805.2 10,075.7 1100,,223344..44 1100,,339933..99 1100,,556600..22 1100,,663344..22 By sector and instrument ? U.S. government 1,815.4 1,960.3 2,117.8 2,269.4 2,206.1 2,269.4 2,360.9 2,401.7 2,470.2 22,,556688..99 22,,662244..77 Treasury securities 1,811.7 1,955.2 2,095.2 2,245.2 2,180.7 2,245.2 2,329.3 2,368.8 2,437.6 2,536.5 2,598.4 4 Agency issues and mortgages 3.6 5.2 22.6 24.2 25.4 24.2 31.6 32.9 32.6 32.4 26.4 5 Private domestic noniinancial sectors 5,831.0 6,383.6 6,978.2 7,535.8 7,399.0 7,535.8 7,714.8 7,832.6 7,923.7 7,991.3 8,009.5 6 Debt capital instruments 3,962.7 4,427.9 4,886.4 5,283.3 5,189.9 5,283.3 5,453.0 5,542.3 5,618.5 5,682.1 5,730.5 7 Tax-exempt obligations 679.1 728.4 790.8 821.2 816.4 821.2 822.2 827.2 837.4 839.7 839.6 8 Corporate bonds 669.4 748.8 851.7 925.4 903.5 925.4 937.1 958.1 970.0 990.4 1,011.7 9 Mortgages 2,614.2 2,950.7 3,243.8 3,536.6 3,470.0 3,536.6 3,693.6 3,757.0 3,811.1 3,852.0 3,879.2 10 Home mortgages 1,720.8 1,943.1 2,173.9 2,404.3 2,347.6 2,404.3 2,554.5 2,619.5 2,669.6 2,709.0 2,740.1 11 Multifamily residential 246.2 270.0 286.7 304.4 301.2 304.4 304.8 300.6 301.6 302.6 302.1 17 Commercial 551.4 648.7 696.4 742.6 734.9 742.6 750.5 752.9 755.6 756.5 753.4 13 Farm 95.8 88.9 86.8 85.3 86.3 85.3 83.9 84.0 84.3 83.9 83.7 14 Other debt instruments 1,868.2 1,955.7 2,091.9 2,252.6 2,209.1 2,252.6 2,261.8 2,290.3 2,305.3 2,309.2 2,279.0 IS Consumer credit 659.8 693.2 743.5 790.6 771.0 790.6 782.3 789.4 798.7 808.9 782.3 16 Bank loans n.e.c 666.0 673.3 713.1 763.0 750.7 763.0 749.7 755.7 749.8 751.2 748.9 17 Open market paper 62.9 73.8 85.7 107.1 113.3 107.1 126.0 128.7 131.8 116.9 119.9 18 Other 479.6 515.3 549.6 591.9 574.1 591.9 603.8 616.6 625.0 632.3 628.0 19 By borrowing sector 5,831.0 6,383.6 6,978.2 7,535.8 7,399.0 7,535.8 7,714.8 7,832.6 7,923.7 7,991.3 8,009.5 70 State and local governments 510.1 558.9 604.5 634.1 629.9 634.1 634.3 637.6 647.8 648.7 648.6 71 Households 2,596.1 2,879.1 3,191.5 3,501.8 3,411.4 3,501.8 3,650.7 3,725.8 3,788.2 3,846.4 3,860.0 ?? Nonfinancial business 2,724.8 2,945.6 3,182.2 3,400.0 3,357.6 3,400.0 3,429.9 3,469.3 3,487.7 3,496.1 3,500.8 73 156.6 145.5 137.6 139.2 139.2 139.2 137.3 138.7 141.6 140.5 139.4 74 Nonfarm noncorporate 997.6 1,075.4 1,145.1 1,195.9 1,183.0 1,195.9 1,208.3 1,208.7 1,208.7 1,207.0 1,203.7 25 Corporate 1,570.6 1,724.6 1,899.5 2,064.8 2,035.5 2,064.8 2,084.3 2,121.9 2,137.4 2,148.7 2,157.8 76 Foreign credit market debt held in United States 238.3 244.6 253.9 261.5 257.7 261.5 261.8 273.1 228833..44 229933..77 229966..33 77 Bonds 74.9 82.3 89.2 94.5 94.2 94.5 103.3 108.4 108.9 116.1 118.9 78 Bank loans n.e.c 26.9 23.3 21.5 21.4 22.6 21.4 19.0 19.3 23.7 27.3 19.6 79 Open market paper 37.4 41.2 49.9 63.0 57.5 63.0 59.3 65.1 71.5 75.3 87.0 30 U.S. government loans 99.1 97.7 93.2 82.6 83.4 82.6 80.3 80.3 79.4 75.0 70.7 31 Total domestic plus foreign 7,884.7 8,588.5 9,349.9 10,066.8 9,862.8 10,066.8 10,337.5 10,507.5 10,677.3 10,853.8 10,930.5 Financial sectors 3? Total credit market debt owed by financial sectors 1,529.8 1,836.8 2,084.4 2,322.4 2,263.8 2,322.4 2,358.4 2,406.7 22,,444488..88 22,,552277..77 22,,554433..22 By instrument 33 U.S. government related 810.3 978.6 1,098.4 1,249.3 1,203.6 1,249.3 1,288.2 1,330.1 1,367.9 1,418.4 11,,445555..33 34 Sponsored credit agency securities 273.0 303.2 348.1 373.3 370.4 373.3 378.1 381.0 384.4 393.6 396.9 35 Mortgage pool securities 531.6 670.4 745.3 871.0 828.2 871.0 905.2 944.2 978.5 1,019.9 1,053.5 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 V Private financial sectors 719.5 858.2 986.1 1,073.0 1,060.2 1,073.0 1,070.2 1,076.5 1,080.9 1,109.3 1,087.9 38 Corporate bonds 287.4 366.3 418.0 482.7 472.7 482.7 491.7 509.4 514.4 533.6 542.5 39 Mortgages 2.7 3.1 3.4 3.4 3.5 3.4 3.2 3.5 4.1 4.2 4.5 40 Bank loans n.e.c 36.1 32.8 34.2 36.0 34.1 36.0 33.2 34.8 34.9 36.7 34.8 41 Open market paper 284.6 322.9 377.7 409.1 398.8 409.1 409.1 402.5 409.6 417.7 399.2 42 Loans from Federal Home Loan Banks... 108.6 133.1 152.8 141.8 151.1 141.8 132.9 126.3 117.9 117.1 107.0 43 Total, by sector 1,529.8 1,836.8 2,084.4 2,322.4 2,263.8 2,322.4 2,358.4 2,406.7 2,448.8 2,527.7 2,543.2 44 Sponsored credit agencies 278.7 308.2 353.1 378.3 375.4 378.3 383.0 385.9 389.4 398.5 401.8 45 Mortgage pools 531.6 670.4 745.3 871.0 828.2 871.0 905.2 944.2 978.5 1,019.9 1,053.5 46 Private financial sectors 719.5 858.2 986.1 1,073.0 1,060.2 1,073.0 1,070.2 1,076.5 1,080.9 1,109.3 1,087.9 47 Commercial banks 75.6 81.8 78.8 77.4 77.0 77.4 73.4 73.3 70.7 76.3 68.1 48 Bank affiliates 116.8 131.1 136.2 142.5 144.0 142.5 142.0 134.3 122.9 114.4 109.2 49 Savings and loan associations 119.8 139.4 159.3 145.2 155.7 145.2 137.1 125.6 116.2 114.0 102.9 50 Mutual savings banks 8.6 16.7 18.6 17.2 17.5 17.2 15.4 16.7 16.2 16.7 16.4 51 Finance companies 328.1 378.8 446.1 496.2 481.2 496.2 499.1 509.8 530.9 552.1 547.2 5? REITs 6.5 7.3 11.4 10.1 10.0 10.1 10.1 9.8 10.2 10.6 10.9 53 SCO issuers 64.0 103.1 135.7 184.4 174.9 184.4 193.1 206.9 213.8 225.2 233.2 All sectors 54 Total credit market debt 9,414.4 10,425.3 11,434.3 12,389.1 12,126.6 12,389.1 12,695.9 12,914.1 13,126.1 13,381.5 13,473.7 55 U.S. government securities 2,620.0 2,933.9 3,211.1 3,513.7 3,404.7 3,513.7 3,644.1 3,726.9 3,833.1 3,982.3 4,075.0 56 State and local obligations 679.1 728.4 790.8 821.2 816.4 821.2 822.2 827.2 837.4 839.7 839.6 57 Corporate and foreign bonds 1,031.7 1,197.4 1,358.9 1,502.6 1,470.5 1,502.6 1,532.1 1,575.9 1,593.2 1,640.0 1,673.1 58 Mortgages 2,617.0 2,953.8 3,247.2 3,540.1 3,473.6 3,540.1 3,696.9 3,760.5 3,815.2 3,856.2 3,883.7 59 Consumer credit 659.8 693.2 743.5 790.6 771.0 790.6 782.3 789.4 798.7 808.9 782.3 60 Bank loans n.e.c 729.0 729.5 768.9 820.3 807.4 820.3 802.0 809.8 808.4 815.1 803.3 61 Open market paper 384.9 437.9 513.4 579.2 569.6 579.2 594.5 596.3 612.9 609.9 606.1 62 Other loans 693.1 751.1 800.5 821.4 813.5 821.4 821.9 828.2 827.2 829.3 810.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • August 1991 1.60 SUMMARY OF CREDIT MARKET CLAIMS, BY HOLDER Billions of dollars, except as noted; period-end levels. 1989 199V 1991 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11998866 11998877 11998888 11998899 Q3 Q4 Qi Q2 Q3 Q4 Ql 1 Total funds advanced in credit markets to domestic nonfinancial sectors 7,646.3 8,343.9 9,096.0 9,805.2 9,605.1 9,805.2 10,075.7 10,234.4 10,393.9 10,560.2 10,634.2 By public agencies and foreign ? Total held 1,779.4 2,006.6 2,199.7 2,379.3 2,317.4 2,379.3 22,,441166..00 22,,449955..66 22,,557766..88 22,,663388..88 22,,669988..66 3 U.S. government securities 509.8 570.9 651.5 682.1 668.6 682.1 679.0 707.3 738.9 756.5 781.1 4 Residential mortgages 678.5 814.1 900.4 1,038.4 991.1 1,038.4 1,077.7 1,126.5 1,171.8 1,221.0 1,262.4 5 FHLB advances to thrifts 108.6 133.1 152.8 141.8 151.1 141.8 132.9 126.3 117.9 117.1 107.0 6 Other loans and securities 482.4 488.6 495.1 517.0 506.6 517.0 526.5 535.4 548.2 544.1 548.1 7 Total held, by type of lender 1,779.4 2,006.6 2,199.7 2,379.3 2,317.4 2,379.3 2,416.0 2,495.6 2,576.8 2,638.8 2,698.6 8 U.S. government 255.3 240.0 217.6 207.1 207.8 207.1 217.3 227.0 242.1 240.0 248.6 9 Sponsored credit agencies and mortgage pools ... 835.9 1,001.0 1,113.0 1,238.2 1,193.5 1,238.2 1,274.0 1,315.0 1,360.5 1,403.4 1,438.2 10 Monetary authority 205.5 230.1 240.6 233.3 227.6 233.3 224.4 237.8 240.8 241.4 247.3 11 Foreign 482.8 535.5 628.5 700.6 688.5 700.6 700.2 715.8 733.5 753.9 764.4 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 1,203.6 1,249.3 1,288.2 1,330.1 1,367.9 11,,441188..44 1,455.3 13 Foreign 238.3 244.6 253.9 261.5 257.7 261.5 261.8 273.1 283.4 293.7 296.3 Private domestic holdings 14 Total private holdings 6,915.6 7,560.4 8,248.5 8,936.8 8,749.0 8,936.8 9,209.8 9,342.0 9,468.5 9,633.5 9,687.2 15 U.S. government securities 2,110.1 2,363.0 2,559.7 2,831.6 2,736.1 2,831.6 2,965.1 3,019.5 3,094.2 3,225.8 3,293.9 16 State and local obligations 679.1 728.4 790.8 821.2 816.4 821.2 822.2 827.2 837.4 839.7 839.6 17 Corporate and foreign bonds 606.6 674.3 765.6 831.6 814.5 831.6 850.9 873.4 885.6 912.3 931.7 18 Residential mortgages 1,288.5 1,399.0 1,560.2 1,670.4 1,657.7 1,670.4 1,781.6 1,793.7 1,799.5 1,790.5 1,779.8 19 Other mortgages and loans 2,339.8 2,528.7 2,724.9 2,923.8 2,875.3 2,923.8 2,922.8 2,954.5 2,969.7 2,982.3 2,949.2 20 LESS: Federal Home Loan Bank advances 108.6 133.1 152.8 141.8 151.1 141.8 132.9 126.3 117.9 117.1 107.0 Private financial intermediation 21 Credit market claims held by private financial institutions 6,018.0 6,564.5 7,128.6 7,662.7 7,507.8 7,662.7 7,853.1 7,912.3 7,999.3 8,151.7 8,178.6 ?? Commercial banking 2,187.6 2,323.0 2,479.3 2,656.6 2,599.6 2,656.6 2,680.4 2,720.7 2,750.6 2,776.6 2,783.0 23 Savings institutions 1,297.9 1,445.5 1,567.7 1,480.7 1,530.3 1,480.7 1,461.3 1,409.5 1,371.2 1,335.0 1,291.0 74 Insurance and pension funds 1,525.4 1,705.1 1,903.8 2,081.6 2,031.6 2,081.6 2,150.5 2,193.4 2,236.8 2,282.6 2,317.0 25 Other finance 1,007.1 1,091.0 1,177.9 1,443.8 1,346.2 1,443.8 1,561.0 1,588.8 1,640.7 1,757.5 1,787.6 76 Sources of funds 6,018.0 6,564.5 7,128.6 7,662.7 7,507.8 7,662.7 7,853.1 7,912.3 7,999.3 8,151.7 8,178.6 27 Private domestic deposits and RPs 3,199.0 3,354.2 3,599.1 3,824.3 3,742.5 3,824.3 3,849.6 3,836.4 3,848.2 3,882.5 3,935.0 28 Credit market debt 719.5 858.2 986.1 1,073.0 1,060.2 1,073.0 1,070.2 1,076.5 1,080.9 1,109.3 1,087.9 7,9 Other sources 2,099.5 2,352.1 2,543.5 2,765.5 2,705.1 2,765.5 2,933.4 2,999.4 3,070.2 3,159.9 3,155.6 30 Foreign funds 18.6 62.3 71.5 61.6 55.0 61.6 63.4 66.4 94.0 97.3 95.6 31 Treasury balances 27.5 21.6 29.0 25.6 30.3 25.6 16.7 32.1 36.6 30.9 26.3 37 Insurance and pension reserves 1,398.5 1,527.8 1,692.5 1,826.0 1,785.7 1,826.0 1,859.8 1,904.2 1,920.5 1,960.4 1,997.5 33 Other, net 655.0 740.3 750.5 852.3 834.0 852.3 993.5 996.8 1,019.1 1,071.2 1,036.2 Private domestic nonfinancial investors 34 Credit market claims 1,617.0 1,854.1 2,106.0 2,347.1 2,301.5 2,347.1 22,,442266..88 22,,550066..22 22,,555500..11 22,,559911..11 22,,559966..55 35 U.S. government securities 848.7 936.7 1,072.2 1,206.4 1,171.3 1,206.4 1,258.5 1,287.8 1,329.3 1,363.2 1,388.6 36 Tax-exempt obligations 212.6 274.4 340.9 369.3 363.1 369.3 362.3 368.3 372.1 368.8 360.6 37 Corporate and foreign bonds 90.5 114.0 100.4 130.5 131.1 130.5 157.4 175.6 168.8 176.1 170.3 38 Open market paper 145.1 178.5 218.0 228.7 239.3 228.7 234.0 251.9 251.0 247.1 240.7 39 Other 320.1 350.4 374.4 412.1 396.8 412.1 414.5 422.6 428.9 435.9 436.2 40 Deposits and currency 3,410.1 3,583.9 3,832.3 4,073.6 3,979.0 4,073.6 4,095.9 4,096.6 4,112.2 4,161.5 4,209.3 41 Currency 186.3 205.4 220.1 231.8 224.4 231.8 234.4 242.7 247.2 254.4 261.9 4? Checkable deposits 516.6 515.4 527.2 528.7 486.1 528.7 504.5 510.1 500.2 529.9 511.8 43 Small time and savings accounts 1,948.3 2,017.1 2,156.2 2,256.7 2,224.4 2,256.7 2,286.3 2,286.5 2,295.7 2,306.3 2,336.6 44 Money market fund shares 268.9 297.8 318.0 403.3 391.0 403.3 436.7 426.3 454.5 465.0 513.3 45 Large time deposits 336.7 373.9 414.7 437.8 440.0 437.8 433.7 421.0 411.3 398.0 401.4 46 Security RPs 128.5 150.1 182.9 197.9 200.9 197.9 188.3 192.5 186.6 183.4 172.0 47 Deposits in foreign countries 24.8 24.3 13.1 17.6 12.1 17.6 11.9 17.5 16.8 24.6 12.3 48 Total of credit market instruments, deposits, and currency 5,027.2 5,438.0 5,938.2 6,420.7 6,280.5 6,420.7 6,522.7 6,602.8 6,662.2 6,752.6 66,,880055..88 49 Public holdings as percent of total 22.6 23.4 23.5 23.6 23.5 23.6 23.4 23.8 24.1 24.3 24.7 50 Private financial intermediation (in percent) 87.0 86.8 86.4 85.7 85.8 85.7 85.3 84.7 84.5 84.6 84.4 51 Total foreign funds 501.3 597.8 700.1 762.3 743.5 762.3 763.6 782.2 827.5 851.2 860.0 MEMO: Corporate equities not included above 52 Total market value 3,360.6 3,325.0 3,619.8 4,378.9 4,395.4 4,378.9 4,170.4 4,336.9 3,770.7 3,987.7 4,550.2 53 Mutual fund shares 413.5 460.1 478.3 555.1 543.9 555.1 550.3 587.9 547.3 579.9 643.0 54 Other equities 2,947.1 2,864.9 3,141.6 3,823.8 3,851.5 3,823.8 3,620.1 3,749.0 3,223.4 3,407.9 3,907.2 55 Holdings by financial institutions 974.6 1,039.5 1,176.1 1,492.3 1,478.5 1,492.3 1,434.8 1,542.1 1,297.2 1,406.6 1,636.9 56 Other holdings 2,385.9 2,285.5 2,443.7 2,886.6 2,917.0 2,886.6 2,735.6 2,794.8 2,473.5 2,581.1 2,913.4 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 1989 Sept. Oct. Mar.' Apr/ May 1 Industrial production (1987 = 100)' 105.4 108.1 109.2 110.6 109.9 107.2 106.6 105.0 105.3 105.8 2 M Pr a o r d ke u t c ts, g t r o o t u a p l in ( g 1 s 9 87 = 100) 105.3 108.6 110.1 111.4 111.0 109.3 108.4 107.8 106.9 106.6 106.9 107.3 5 6 4 7 3 Ma F In t i e n t C E r e a i q o r a l m , u n l s i s t e p o u d ( m t 1 m i a 9 a e l e 8 t n e r ( 7 t 1 g ( 9 ( = 1 o 8 1 9 o 7 9 8 1 d 8 7 0 s = 7 0 = ( ) = 1 1 9 0 1 0 8 1 0 ) 7 0 0 0 ) = ) 100) 1 1 1 1 1 0 0 0 0 0 4 4 5 7 5 . . . . . 4 0 6 6 6 1 1 1 1 1 0 0 0 1 0 6 9 6 2 7 . . . . . 1 7 3 8 4 1 1 1 1 1 0 1 1 0 0 7 5 0 7 7 . . . . . 7 5 9 3 8 1 1 1 1 1 0 1 0 1 0 7 2 8 7 9 . . . . . 6 4 7 8 4 1 1 1 1 1 0 1 0 1 0 7 2 8 7 8 . . . . . 0 3 6 0 3 1 1 1 1 1 0 1 1 0 0 6 0 5 6 6 . . . . . 2 1 5 2 8 1 1 1 1 1 0 0 0 1 0 6 9 5 3 5 . . . . . 0 2 7 6 3 1 1 1 1 1 0 0 0 1 0 3 9 5 3 4 . . . . . 8 1 6 6 8 1 1 1 1 1 0 0 1 0 0 2 8 2 4 3 . . . . . 3 9 7 9 6 1 1 1 1 1 0 0 1 0 0 8 2 2 1 4 . . . . . 5 5 9 2 6 1 1 1 1 1 0 1 0 0 0 8 2 5 1 3 . . . . . 5 5 0 6 6 1 1 1 1 1 1 0 0 0 0 2 8 2 6 3 . . . . . 8 4 3 0 6 Industry groupings 8 Manufacturing (1987 = 100) 105.8 108.9 109.9 111.2 110.7 108.9 107.5 107.0 106.1 105.2 105.7 105.9 Capacity utilization (percent)2 83.9 83.9 82.3 82.8 82.2 79.4 78.9 78.0 77.2 77.4 77.3 9 Manufacturing 166.7 172.9 154.0'' 146.0 147.0 146.0 130.0 132.0 133.0 128.0 145.0 138.0 10 Construction contracts (1982 = 100)3 128.0 131.5 133.8 133.5' 133.4' 133.1' 132.9' 132.7' 132.4 132.1 131.8 131.9 11 Nonagricultural employment, total4 103.4 104.0 102.7 102.(K 101.5' 100.6' 100.1' 99.3' 98.7 98.1 97.7 97.8 12 Goods-producing, total 98.3 98.7 96.8 96.7' 96.4' 95.5' 95.2' 94.8' 94.1 93.7 93.5 93.5 13 Manufacturing, total 93.5 93.8 91.5 91.4' 91.0' 89.9' 89.6' 89.1' 88.3 87.9 87.7 87.8 14 Manufacturing, production- worker ... 138.3 142.9 146.8 146.7' 146.7' 146.7' 146.7' 146.6' 146.4 146.3 146.1 146.2 15 Service-producing 253.2 272.7 289.0 292.2 292.1 293.4 295.1 293.9' 294.5 295.6 295.8 n.a. 16 Personal income, total 244.6 258.9 272.2 276.4 274.8 274.8 277.1 275.7 275.7 276.0 276.6 n.a. 17 Wages and salary disbursements 196.5 203.1 205.0 207.0 206.0 202.9 205.4 202.6 200.9 200.3 201.1 n.a. 18 Manufacturing 252.2 270.1 286.1 288.7 288.7 290.1 291.6 290.4' 291.2 292.3 292.4 n.a. 19 Disposable personal income 228.2 241.7 251.0r 254.0 253.5 254.3 249.4 246.2 251.6 252.3 251.3 253.9 20 Retail sales® 2 2 1 2 ^C P o r n o s d u u m ce e r r f ( in 1 i 9 sh 8 e 2 d - 84 g o = o ds 1 0 ( 0 1 ) 9 82 = 100) ... 1 10 1 8 8 . .3 0 1 1 2 1 4 3 . . 0 6 1 11 3 9 0 . . 2 7 1 12 3 0 2 . . 4 7 1 1 3 2 3 2 . . 5 3 1 1 3 2 3 2 . . 8 9 1 1 3 2 3 2 . . 8 0 1 1 3 2 4 2 . . 6 3 ' 1 1 3 21 4 . .8 2 1 12 3 0 5 . . 6 0 1 1 3 2 5 0 . . 2 9 1 12 3 1 5 . . 7 6 1. A major revision of the industrial production index and the capacity 6. Based on Bureau of Census data published in Survey of Current Business. utilization rates was released in April 1990. See "Industrial Production: 1989 7. Data without seasonal adjustment, as published in Monthly Labor Review. Developments and Historical Revision" in the Federal Reserve Bulletin, vol. 76 Seasonally adjusted data for changes in the price indexes may be obtained from (April 1990), pp. 187-204. the Bureau of Labor Statistics, U.S. Department of Labor. 2. Ratios of indexes of production to indexes of capacity. Based on data from Federal Reserve, McGraw-Hill Economics Department, Department of Com- NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5,and 6, merce, and other sources. and indexes for series mentioned in notes 3 and 7 may also be found in the Survey 3. Index of dollar value of total construction contracts, including residential, of Current Business. nonresidential and heavy engineering, from McGraw-Hill Information Systems Figures for industrial production for the latest month are preliminary and the Company, F. W. Dodge Division. prior three months have been revised. See "Recent Developments in Industrial 4. Based on data in Employment and Earnings (U.S. Department of Labor). Capacity and Utilization," Federal Reserve Bulletin, vol. 76 (June 1990), pp. Series covers employees only, excluding personnel in the Armed Forces. 411-35. 5. Based on data in Survey of Current Business (U.S. Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • August 1991 2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted. Exceptions noted. 1990 1991 CCaatteeggoorryy 11998888 11998899 11999900 Oct/ Nov/ Dec/ Jan/ Feb/ Mar/ Apr/ May HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 186,837 188,601 190,216 190,717 190,854 190,999 191,116 191,248 191,384 191,525 191,664 ? Labor force (including Armed Forces)1 123,893 126,077 126,954 127,067 126,880 127,307 126,777 127,209 127,467 127,817 127,374 3 Civilian labor force 121,669 123,869 124,787 124,875 124,723 125,174 124,638 125,076 125,326 125,672 125,232 4 Nonagricultural industries2 111,800 114,142 114,728 114,558 114,201 114,321 113,759 113,696 113,656 114,243 113,319 5 Agriculture 3,169 3,199 3,186 3,175 3,185 3,253 3,163 3,222 3,098 3,156 3,272 Unemployment 6 Number 6,701 6,528 6,874 7,142 7,337 7,600 7,715 8,158 8,572 8,274 8,640 7 Rate (percent of civilian labor force) 5.5 5.3 5.5 5.7 5.9 6.1 6.2 6.5 6.8 6.6 6.9 8 Not in labor force 62,944 62,524 63,262 63,650 63,974 63,692 64,339 64,039 63,917 63,708 64,290 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 105,536 108,413 110,330 109,982 109,761 109,621 109,418 109,160 108,902 108,722 108,781 10 19,350 19,426 19,064 18,973 18,807 18,749 18,671 18,532 18,443 18,399 18,411 11 713 700 735 710 712 715 713 715 714 711 705 1? 5,110 5,200 5,205 5,022 4,962 4,911 4,797 4,792 4,720 4,683 4,696 N Transportation and public utilities 5,527 5,648 5,838 5,855 5,852 5,867 5,866 5,834 5,824 5,815 5,822 14 25,132 25,851 26,151 25,853 25,808 25,745 25,680 25,583 25,483 25,407 25,391 IS 6,649 6,724 6,833 6,746 6,740 6,733 6,736 6,732 6,735 6,718 6,714 16 25,669 27,096 28,209 28,479 28,525 28,548 28,590 28,583 28,576 28,569 28,612 17 Government 17,386 17,769 18,295 18,344 18,355 18,353 18,365 18,389 18,407 18,420 18,430 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 1991 1990 1991 1990 1991 SSeerriieess Q2 Q3 Q4 Ql' Q2 Q3 Q4 Ql' Q2 Q3 Q4 Ql' Output (1987 = 100) Capacity (percent of 1987 output) Utilization rate (percent) 1 Total industry 109.4 110.5 108.5 105.8 131.1 131.9 132.8 133.6 83.5 83.7 81.7 79.2 2 Manufacturing 110.2 111.1 109.0 106.1 133.0 134.0 135.0 136.0 82.8 82.9 80.8 78.0 3 Primary processing 106.3 107.6 104.7 100.6 124.8 125.5 126.1 126.8 85.2 85.8 83.0 79.3 4 Advanced processing 112.1 112.8 111.0 108.6 136.9 138.0 139.1 140.2 81.9 81.7 79.8 77.5 5 Durable 112.4 113.6 110.0 106.1 137.1 138.0 139.0 139.9 82.0 82.3 79.1 75.8 6 Lumber and products 102.3 101.5 95.7 92.2 123.5 124.0 124.6 125.0 82.8 81.8 76.8 73.8 7 Primary metals 107.4 112.2 107.3 97.9 127.4 127.7 127.9 128.2 84.2 87.9 83.9 76.4 8 Iron and steel 107.5 114.3 110.0 96.3 132.2 132.5 132.7 133.0 81.3 86.3 82.9 72.4 9 Nonferrous 107.1 109.2 103.4 100.1 120.6 120.9 121.1 121.3 88.8 90.3 85.3 82.5 10 Nonelectrical machinery 126.7 128.5 126.4 124.4 153.1 154.7 156.3 157.9 82.8 83.1 80.8 78.7 11 Electrical machinery 112.2 112.4 109.9 108.1 138.7 140.0 141.4 142.7 80.9 80.3 77.8 75.8 12 Motor vehicles and parts 102.6 103.7 89.4 80.8 132.4 132.7 132.9 133.4 77.5 78.2 67.2 60.5 13 Aerospace and miscellaneous transportation equipment... 113.6 114.5 113.3 109.9 134.3 113355..22 136.1 113377..00 8844..66 8844..77 8833..33 8800..22 14 107.5 108.1 107.8 106.1 127.9 128.9 129.9 130.9 84.0 83.8 83.0 81.0 15 Textile mill products 102.4 101.3 98.2 94.3 116.3 116.6 117.0 117.3 88.1 86.9 84.0 80.4 16 Paper and products 104.5 107.2 105.8 102.6 114.5 115.1 115.7 116.4 91.3 93.2 91.4 88.2 17 Chemicals and products 109.9 110.8 110.2 109.1 134.6 135.9 137.1 138.4 81.6 81.5 80.4 78.8 18 Plastics materials 116.3 117.2 118.1 113.2 128.4 130.6 132.9 135.7 90.6 89.7 88.9 83.4 19 Petroleum products 106.0 110.0 107.4 107.4 121.2 121.3 121.4 121.4 87.4 90.7 88.5 88.4 70 Mining 102.5 103.4 103.1 102.1 115.0 114.5 114.0 113.8 89.1 90.3 90.4 89.7 71 Utilities 107.8 110.5 108.3 106.2 126.6 127.1 127.6 128.1 85.2 86.9 8844..88 82.9 22 Electric 111.0 112.9 111.2 109.3 121.9 122.6 123.2 123.8 91.1 92.1 9900..22 88.3 Previoi is cycle Latest cycle 1990 1991 High Low High Low May Oct. Nov. Dec. Jan. Feb.' Mar.' Apr' May" Capacity utilization rate (percent) 23 Total industry 89.2 72.6 87.3 71.8 83.4 83.0 81.6 80.6 80.0 79.1 78.4 78.5 78.7 24 Manufacturing 88.9 70.8 87.3 70.0 82.9 82.2 80.7 79.4 78.9 78.0 77.2 77.4 77.3 75 Primary processing 92.2 68.9 89.7 66.8 85.0 84.3 83.2 81.5 80.6 79.5 77.9 78.1 78.3 26 Advanced processing 87.5 72.0 86.3 71.4 82.1 81.3 79.6 78.5 78.2 77.4 76.8 77.1 76.9 77 Durable 88.8 68.5 86.9 65.0 82.2 81.2 79.1 77.2 76.8 75.8 74.9 75.3 75.3 78 Lumber and products 90.1 62.2 87.6 60.9 82.3 78.9 76.6 74.9 75.4 73.2 72.8 74.2 74.2 79 Primary metals 100.6 66.2 102.4 46.8 83.3 85.0 85.3 81.4 77.8 77.6 73.7 73.6 73.7 30 Iron and steel 105.8 66.6 110.4 38.3 79.8 83.2 84.8 80.8 74.5 73.7 69.1 68.7 68.5 31 Nonferrous 92.9 61.3 90.5 62.2 88.8 87.7 85.9 82.3 83.0 83.7 80.8 81.0 81.6 37 Nonelectrical machinery 96.4 74.5 92.1 64.9 82.9 82.2 80.8 79.5 79.8 78.8 77.6 77.3 76.5 33 Electrical machinery 87.8 63.8 89.4 71.1 81.0 78.6 78.1 76.6 75.7 75.8 75.9 76.4 76.3 34 Motor vehicles and parts — 93.4 51.1 93.0 44.5 78.6 78.1 64.5 59.0 62.3 59.5 59.7 64.4 66.9 35 Aerospace and miscellaneous transportation equipment.. 77.0 66.6 81.1 66.9 84.5 84.0 8833..11 8822..88 8811..11 8800..33 7799..33 7777..99 7777..22 36 Nondurable 87.9 71.8 87.0 76.9 84.0 83.6 82.9 82.4 81.8 81.0 80.3 80.2 80.1 37 Textile mill products 92.0 60.4 91.7 73.8 88.3 86.6 83.3 82.1 80.2 80.4 80.6 81.6 82.4 38 Paper and products 96.9 69.0 94.2 82.0 90.9 92.5 90.9 91.0 89.8 87.9 86.8 86.5 85.6 39 Chemicals and products 87.9 69.9 85.1 70.1 81.1 81.0 80.2 79.9 79.8 78.8 77.9 78.0 77.7 40 Plastics materials 102.0 50.6 90.9 63.4 90.9 90.0 90.2 86.5 86.2 85.0 79.0 79.3 79.1 41 Petroleum products 96.7 81.1 89.5 68.2 86.3 89.5 88.9 87.0 86.2 89.6 89.4 87.7 89.5 47 94.4 88.4 96.6 80.6 88.9 89.9 90.6 90.8 89.5 90.4 89.1 87.7 87.5 43 Utilities 95.6 82.5 88.3 76.2 84.6 85.6 83.8 85.1 84.1 81.6 82.9 82.9 86.1 44 Electric 99.0 82.7 88.3 78.7 90.5 91.2 88.9 90.6 89.3 87.0 88.5 88.4 92.4 1 These data also appear in the Board's G.17 (419) release. For address, see 2. Monthly high 1973; monthly low 1975. inside front cover. For a detailed description of the series, see "Recent Devel- 3. Monthly highs 1978 through 1980; monthly lows 1982. opments in Industrial Capacity and Utilization," Federal Reserve Bulletin, vol. 76 (June 1990), pages 411-35. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • August 1991 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data are seasonally adjusted 1987 1990 1991 pro- 1990 GGrroouuppss por- avg. tion May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb/ Mar/ Apr/ Mayp Index (1987 = 100) MAJOR MARKET 1 Total index 100.0 109.2 109.4 110.1 110.4 110.5 110.6 109.9 108.3 107.2 106.6 105.7 105.0 105.3 105.8 2 Products 60.8 110.1 110.5 110.9 110.9 110.9 111.4 111.0 109.3 108.4 107.8 106.9 106.6 106.9 107.3 3 Final products 46.0 110.9 111.2 111.7 111.7 111.9 112.6 112.3 110.2 109.2 109.1 108.3 108.2 108.6 108.8 4 Consumer goods 26.0 107.3 107.4 107.8 107.5 107.8 108.7 108.6 106.5 105.7 105.6 104.7 104.9 105.5 106.3 5 Durable consumer goods 5.6 106.2 109.3 112.1 108.3 107.4 110.4 106.9 99.4 96.0 97.6 95.2 95.9 99.1 100.8 6 Automotive products 2.5 102.3 107.0 112.2 106.7 104.6 111.8 107.1 93.5 86.7 90.6 88.1 88.9 94.6 96.9 7 Autos and trucks 1.5 97.4 105.6 112.9 104.8 101.5 113.0 107.5 84.2 74.6 79.6 74.7 76.7 85.0 89.2 8 Autos, consumer .9 92.2 96.8 103.8 98.0 97.2 111.5 104.6 80.7 77.2 83.2 78.6 76.3 78.3 81.9 9 Trucks, consumer .6 106.1 120.4 128.3 116.1 108.8 115.4 112.2 90.2 70.2 73.6 68.1 77.4 96.3 101.6 10 Auto parts and allied goods... 1.0 109.6 108.9 111.2 109.5 109.3 110.0 106.4 107.3 104.8 107.1 108.3 107.3 108.9 108.3 11 Other 3.1 109.4 111.1 112.0 109.5 109.6 109.3 106.8 104.1 103.4 103.2 100.7 101.4 102.8 103.9 12 Appliances, A/C, and TV .8 102.0 103.6 107.5 100.2 101.9 101.0 94.6 90.8 89.9 92.8 94.5 96.2 97.3 99.2 13 Carpeting and furniture .9 104.9 107.6 107.8 106.0 104.9 106.0 103.8 99.2 100.9 100.3 92.0 93.8 96.5 97.6 14 Miscellaneous home goods ... 1.4 116.4 117.5 117.2 116.9 116.8 116.1 115.5 114.6 112.5 110.8 109.8 109.2 109.8 110.5 15 Nondurable consumer goods 20.4 107.6 106.9 106.6 107.3 107.9 108.2 109.1 108.5 108.4 107.8 107.3 107.3 107.2 107.8 16 Foods and tobacco 9.1 105.9 105.2 104.4 105.1 105.7 105.3 106.7 107.8 107.5 106.3 105.9 105.7 105.7 105.9 17 Clothing 2.6 95.7 96.4 95.7 95.6 94.6 95.3 94.2 91.7 92.1 90.6 90.8 90.2 90.2 90.2 18 Chemical products 3.5 113.3 113.0 112.8 112.4 114.3 115.1 115.9 113.5 113.5 114.7 114.8 114.2 114.5 114.1 19 Paper products 2.5 119.7 118.6 118.3 120.3 119.3 121.9 123.4 122.8 122.7 122.1 121.0 122.2 121.9 122.0 20 Energy 2.7 105.9 104.1 105.3 106.7 109.0 108.0 108.8 106.4 106.6 106.5 105.2 106.0 105.3 109.5 21 Fuels .7 102.9 98.2 102.6 104.6 106.0 105.6 104.0 101.1 98.1 99.8 103.4 104.3 100.6 103.3 22 Residential utilities 2.0 107.0 106.3 106.3 107.5 110.0 108.9 110.6 108.4 109.7 109.0 105.9 106.6 107.0 111.8 23 Equipment, total 20.0 115.5 116.2 116.8 117.2 117.2 117.8 117.0 115.1 113.6 113.6 112.9 112.5 112.6 112.0 24 Business equipment 13.9 123.1 123.5 124.4 125.0 125.4 126.4 125.4 122.9 121.2 121.6 120.6 120.3 121.0 120.6 25 Information processing and related .. 5.6 127.2 126.6 126.3 128.0 128.5 129.5 130.1 128.8 127.5 130.1 131.6 131.2 131.0 130.4 26 Office and computing 1.9 149.8 148.9 150.6 152.7 152.2 153.6 155.3 149.8 148.9 155.0 157.3 155.1 154.5 153.6 27 Industrial 4.0 115.3 115.8 116.0 117.2 117.9 117.4 115.4 115.3 112.3 111.5 109.1 109.5 109.1 108.0 28 Transit 2.5 129.9 132.5 137.4 135.5 135.4 140.5 137.5 126.3 123.4 124.0 120.3 120.4 124.4 125.4 29 Autos and trucks 1.2 96.8 105.7 112.2 103.1 101.5 111.0 106.5 83.9 75.3 79.8 75.0 76.7 84.4 87.9 30 Other 1.9 118.5 119.4 119.9 119.2 119.8 118.5 117.0 117.6 118.5 115.0 112.5 110.8 112.4 112.3 31 Defense and space equipment 5.4 97.3 97.6 97.6 97.8 97.7 97.3 97.3 96.2 95.8 94.4 94.5 93.8 92.5 91.8 32 Oil and gas well drilling .6 109.0 118.6 119.5 116.2 106.9 107.4 107.1 109.7 107.3 106.4 108.2 107.7 105.1 101.3 33 Manufactured homes .2 90.8 91.3 92.8 90.0 93.4 91.8 89.0 87.3 83.4 83.1 77.3 79.3 83.1 84.4 34 Intermediate products, total 14.7 107.7 108.3 108.3 108.4 107.9 107.4 107.0 106.2 106.0 103.8 102.6 101.5 101.5 102.4 35 Construction supplies 6.0 105.2 105.5 106.0 106.7 105.3 103.8 103.1 101.8 101.0 97.7 96.4 94.2 95.3 95.8 36 Business supplies 8.7 109.4 110.2 109.8 109.5 109.7 109.9 109.7 109.2 109.4 108.1 106.8 106.6 105.8 107.0 37 Materials, total 39.2 107.8 107.7 108.8 109.6 109.7 109.4 108.3 106.8 105.3 104.8 103.9 102.6 103.0 103.6 38 Durable goods materials 19.4 111.8 112.5 113.8 114.0 114.9 114.1 112.5 110.4 107.5 106.8 105.5 103.3 104.4 104.9 39 Durable consumer parts 4.2 104.0 108.5 108.5 108.1 110.4 109.0 106.0 98.5 91.1 94.2 90.4 87.9 91.6 94.4 40 Equipment parts 7.3 118.1 118.1 119.1 119.2 119.4 119.8 118.6 117.4 116.9 115.9 116.2 114.8 114.5 114.1 41 Other 7.9 110.2 109.6 111.8 112.4 113.1 111.6 110.4 110.2 107.4 105.2 103.8 101.0 101.9 102.1 42 Basic metal materials 2.8 111.9 109.2 113.6 115.5 116.3 115.8 112.0 112.7 109.6 104.6 104.8 101.1 101.3 101.5 43 Nondurable goods materials 9.0 106.0 105.2 106.1 107.8 106.8 106.9 106.5 105.6 104.9 104.9 103.6 102.9 103.0 102.9 44 Textile materials 1.2 96.7 97.4 99.4 100.2 97.8 98.1 97.9 95.1 91.4 89.1 91.5 91.8 92.9 93.9 45 Pulp and paper materials 1.9 106.4 104.5 104.8 109.0 106.9 109.4 108.6 107.2 108.5 106.0 104.1 102.4 101.8 100.5 46 Chemical materials 3.8 106.8 105.4 107.3 108.5 108.0 106.6 105.6 105.8 105.7 106.7 104.1 103.3 103.5 103.7 47 Other 2.1 109.5 109.8 108.8 109.9 109.3 110.1 110.8 109.4 107.6 109.3 108.8 108.8 108.5 108.5 48 Energy materials 10.9 102.1 101.1 102.1 103.3 103.0 103.0 102.3 101.6 102.0 101.1 101.1 101.0 100.5 101.8 49 Primary energy 7.2 101.3 100.1 101.2 103.3 102.1 101.0 100.7 101.4 101.9 101.3 102.1 101.5 100.9 101.5 50 Converted fuel materials 3.7 103.5 102.9 103.9 103.4 104.9 107.0 105.3 102.0 102.1 100.9 99.2 100.0 99.7 102.5 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.3 109.5 109.5 110.0 110.6 110.7 110.6 110.0 109.0 108.1 107.4 106.6 105.8 105.9 106.3 52 Total excluding motor vehicles and parts... 95.3 109.8 109.7 110.2 110.8 110.9 110.7 110.2 109.4 108.6 107.8 107.0 106.2 106.3 106.6 53 Total excluding office and computing machines 97.5 108.2 108.4 109.1 109.3 109.4 109.5 108.8 107.3 106.1 105.4 104.4 103.7 104.1 104.6 54 Consumer goods excluding autos and trucks 24.5 107.9 107.6 107.5 107.6 108.2 108.4 108.7 107.9 107.6 107.2 106.5 106.6 106.7 107.3 55 Consumer goods excluding energy 23.3 107.5 107.8 108.1 107.6 107.7 108.7 108.6 106.5 105.6 105.5 104.7 104.7 105.5 105.9 56 Business equipment excluding autos and trucks 12.7 125.6 125.3 125.6 127.2 127.8 128.0 127.2 126.8 125.6 125.7 125.0 124.5 124.6 123.8 57 Business equipment excluding office and computing equipment 12.0 118.7 119.4 120.2 120.5 121.1 122.0 120.6 118.6 116.7 116.2 114.6 114.6 115.6 115.3 58 Materials excluding energy 28.4 110.0 110.2 111.4 112.1 112.3 111.8 110.6 108.9 106.6 106.2 104.9 103.2 103.9 104.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A49 2.13—Continued 11998877 1990 1991 SIC pprroo-- 1990 Groups code ppoorr-- avg. ttiioonn May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb/ Mar/ Apr/ Mayp Index (1987 = 100) MAJOR INDUSTRY 100.0 109.2 109.4 110.1 110.4 110.5 110.6 109.9 108.3 107.2 106.6 105.7 105.0 105.3 105.8 2 Manufacturing.... 84.4 109.9 110.3 110.8 111.1 111.1 111.2 110.7 108.9 107.5 107.0 106.1 105.2 105.7 105.9 3 Primary processing .. 26.7 106.3 106.1 107.0 107.9 108.0 106.9 106.2 104.9 102.9 102.0 100.8 99.0 99.4 99.8 4 Advanced processing 57.7 111.6 112.4 112.6 112.5 112.5 113.2 112.8 110.8 109.5 109.3 108.5 108.0 108.6 108.7 Durable 47.3 111.6 112.6 113.4 113.4 113.5 113.8 112.5 109.9 107.5 107.2 106,1 105.0 105.9 106.1 Lumber and products ... 24 2.0 101.6 101.7 102.0 103.6 100.5 100.3 98.2 95.5 93.5 94.2 91.5 91.0 92.9 92.9 Furniture and fixtures ... 25 1.4 105.9 108.0 108.7 108.0 106.7 106.9 104.4 102.3 102.0 99.0 94.9 95.3 98.5 99.2 Clay, glass, and stone products 32 2.5 105.7 106.4 106.1 106.0 106.6 104.5 104.4 103.8 100.7 97.2 98.9 94.8 95.7 96.5 Primary metals 33 3.3 108.4 106.2 109.5 110.3 114.6 111.6 108.6 109.1 104.2 99.7 99.5 94.5 94.5 94.7 Iron and steel 331,2 1.9 109.9 105.5 110.3 110.6 118.3 113.9 110.3 112.6 107.3 99.0 98.0 92.0 91.7 91.5 Raw steel .1 109.6 107.6 111.8 113.9 118.5 111.6 112.8 109.5 100.6 104.7 97.9 89.8 91.0 90.1 Nonferrous 333-6,9 1.4 106.2 107.1 108.3 109.8 109.4 108.4 106.2 104.1 99.8 100.6 101.6 98.1 98.4 99.2 Fabricated metal products 5.4 105.9 107.1 106.7 107.7 107.9 106.8 106.4 104.3 101.9 101.7 99.1 97.8 98.0 98.4 Nonelectrical machinery. 8.6 126.5 126.9 127.5 128.3 128.8 128.5 128.1 126.3 124.7 125.5 124.5 123.0 122.8 122.1 Office and computing machines 357 2.5 149.8 149.0 150.6 152.7 152.2 153.6 155.3 149.8 148.9 155.0 157.3 155.2 154.5 153.6 Electrical machinery 36 8.6 111.4 112.4 112.8 112.2 112.5 112.5 110.8 110.4 108.7 107.6 108.2 108.6 109.7 109.8 Transportation equipment 9.8 105.5 109.0 111.0 109.3 107.9 111.1 109.2 100.1 96.6 97.6 95.5 95.0 97.2 98.5 Motor vehicles and parts 4.7 96.8 104.0 108.0 102.7 101.0 107.5 103.8 85.8 78.5 83.0 79.4 79.8 86.2 89.7 Autos and light trucks 2.3 96.6 104.3 111.6 103.8 100.9 112.8 107.1 83.7 74.9 80.1 75.3 76.6 84.0 88.2 20 Aerospace and miscellaneous transportation equipment.. 372-6,9 5.1 113.3 113.5 113.8 115.2 114.1 114.2 114.0 113.1 112.9 110.8 110.0 108.8 107.2 106.4 Instruments 38 3.3 116.8 116.5 115.0 116.9 117.5 118.4 118.1 118.1 117.3 119.0 119.3 118.4 118.3 117.5 Miscellaneous manufacturers 1.2 120.0 119.1 119.6 120.4 121.8 121.3 121.5 122.5 119.1 116.1 114.6 114.8 116.1 116.0 23 Nondurable 37.2 107.8 107.4 107.6 108.1 108.1 108.0 108.4 107.7 107.4 106.8 106.0 105.4 105.5 105.7 24 Foods 20 8.8 107.6 106.8 106.1 107.1 107.7 107.6 108.8 109.6 109.1 108.3 107.6 107.5 107.5 107.8 25 Tobacco products 21 1.0 98.6 97.2 95.6 98.5 96.3 96.4 97.8 99.0 101.1 100.0 100.1 98.3 98.6 97.9 26 Textile mill products 22 1.8 100.8 102.7 103.6 102.9 100.4 100.7 101.2 97.4 96.1 94.0 94.3 94.7 95.9 96.9 27 Apparel products 23 2.4 98.8 99.2 99.3 99.2 98.8 98.4 97.2 95.5 94.9 92.9 93.1 92.4 92.9 93.7 28 Paper and products 26 3.6 105.3 104.0 104.2 107.8 106.5 107.5 106.8 105.1 105.4 104.2 102.2 101.3 101.1 100.2 29 Printing and publishing .. 27 6.4 111.9 112.8 112.0 111.4 110.9 111.6 112.9 112.4 112.8 112.1 110.9 110.5 110.1 110.0 30 Chemicals and products . 28 8.6 110.3 109.2 110.3 110.4 111.1 110.9 110.7 110.0 109.9 110.1 109.1 108.2 108.6 108.6 31 Petroleum products 29 1.3 108.2 104.6 106.5 110.5 110.2 109.3 108.6 107.8 105.6 104.7 108.8 108.6 106.5 108.6 32 Rubber and plastic products 30 3.0 110.2 110.9 112.8 110.9 112.0 110.3 110.6 109.6 106.9 108.8 106.1 104.6 105.4 106.2 33 Leather and products ... 31 .3 100.0 103.5 102.0 102.5 99.6 100.3 95.3 89.9 92.6 89.6 90.8 91.8 90.0 89.0 34 Mining 7.9 102.6 102.2 102.2 104.0 102.4 103.9 102.6 103.3 103.4 101.7 102.9 101.6 100.1 100.0 35 Metal 10 .3 153.1 148.7 156.7 164.8 155.7 163.6 146.8 153.4 162.0 143.1 148.0 147.6 145.4 145.0 3 3 6 7 C O o il a a l nd gas extraction... 11,1 1 2 3 5 1 . . 7 2 1 9 1 5 3 . . 5 2 1 9 1 6 0 . . 0 0 1 9 1 4 3 . . 6 5 1 9 1 5 8 . . 5 5 1 9 1 5 0 . . 8 2 1 9 1 5 6 . . 8 8 1 9 1 5 4 . . 8 7 1 9 1 7 2 . . 3 9 1 9 1 6 0 . . 7 6 1 9 0 6 8 . . 0 4 1 9 1 7 2 . . 2 8 1 9 0 6 9 . . 4 9 1 9 0 5 5 . . 6 9 1 9 0 5 5 . . 6 5 38 Stone and earth minerals 14 .7 119.5 119.9 121.1 121.8 120.1 121.7 118.0 113.5 118.9 119.2 112.0 108.8 106.3 106.6 39 Utilities... 7.6 108.0 107.1 109.7 109.7 111.4 110.3 109.2 106.9 108.8 107.6 104.6 106.3 106.4 110.6 40 Electric. 491,3PT 6.0 110.8 110.3 113.1 112.1 113.6 112.9 112.1 109.6 111.8 110.4 107.8 109.6 109.7 114.8 41 Gas .... 492,3PT 1.6 97.3 95.2 97.4 100.7 103.3 100.9 98.1 97.0 97.6 97.5 92.8 94.1 94.4 94.8 SPECIAL AGGREGATES 42 Manufacturing excluding motor vehicles and parts 79.8 110.7 110.7 111.0 111.6 111.7 111.4 111.1 110.3 109.1 108.4 107.6 106.7 106.8 106.8 43 Manufacturing excluding office and computing machines 82.0 108.7 109.2 109.6 109.8 109.9 110.0 109.4 107.7 106.2 105.6 104.5 103.7 104.2 104.5 3ross va !ue (billions of 158 2 dollars, annual rates) MAJOR MARKET 44 Products, total 1734.8 1,911.4 1,922.2 1,937.0 1,923.5 1,929.5 1,941.6 1,939.6 1,882.8 1,859.4 1,860.4 1,848.4 1,845.8 1,855.0 1,869.9 45 Final 1350.9 1,497.7 1,506.0 1,523.4 1,508.7 1,516.3 1,529.1 1,523.7 1,470.8 1,450.8 1,459.6 1,452.8 1,455.3 1,463.9 1,472.2 46 Consumer goods 833.4 882.9 885.9 893.8 886.0 885.9 895.2 892.7 865.2 857.6 857.9 852.7 857.0 863.9 873.3 47 Equipment 517.5 614.8 620.1 629.6 622.7 630.4 633.9 631.0 605.6 593.2 601.7 600.1 598.2 599.9 598.9 48 Intermediate 384.0 413.7 416.2 413.6 414.9 413.1 412.5 415.9 412.0 408.7 400.8 395.6 390.5 391.1 397.7 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 • August 1991 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1990 1991 item July Aug. Sept. Oct. Nov. Dec. Jan. Feb/ Mar/ Apr. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,456 1,339 1,111 1,086 1,055 989 925 916 854 802 876 892 913 2 1-family 994 932 794 781 756 730 703 668 645 611 695 689 742 3 2-or-more-family 462 407 317 305 299 259 222 248 209 191 181 203 171 4 Started 1,488 1,376 1,193 1,155 1,131 1,106 1,026 1,130 971 847 992 907 981 5 1-family 1,081 1,003 895 876 835 858 839 769 751 648 788 742 807 6 2-or-more-family 407 373 298 279 2% 248 187 361 220 199 204 165 174 7 Under construction, end of period1 . 919 850 711 831 815 790 766 756 744 717 709 683 676 8 1-family 570 535 449 528 517 503 497 486 478 461 457 442 444 9 2-or-more-family 350 315 262 303 298 287 269 270 266 256 252 241 232 10 Completed 1,530 1,423 1,308 1,312 1,307 1,314 1,275 1,246 1,155 1,125 1,096 1,192 1,083 11 1-family 1,085 1,026 966 988 950 963 930 922 878 841 838 882 814 12 2-or-more-family 445 396 342 324 357 351 345 324 277 284 258 310 269 13 Mobile homes shipped 218 198 188 187 193 184 186 181 167 168 157 157 175 Merchant builder activity in 1-family units 14 Number sold 675 650 535 541 525 504 465 480 464 414' 489 494 500 15 Number for sale, end of period1 368 363 318 350 345 338 334 327 318 315" 312 307 302 Price (thousands of dollars)2 Median 16 Units sold 113.3 120.4 122.3 118.7 118.4 113.0 120.0 118.9 127.0 117.9R 120.0 123.3 122.0 Average 17 Units sold 139.0 148.3 149.0 149.8 144.7 142.1 153.0 143.3 153.4 148.6R 148.9 157.7 155.4 EXISTING UNITS (1-family) 18 Number sold 3,594 3,439 3,316 3,320 3,410 3,160 3,070 3,150 3,130 2,900 3,160 3,220 3,310 Price of units sold (thousands of dollars)2 19 Median 89.2 92.9 95.2 98.1 97.2 94.4 92.9 92.0 91.7 95.6 94.0 98.2 100.3 20 Average 112.5 118.0 118.3 121.1 120.7 116.8 115.9 115.6 114.1 123.0 119.7 125.2 128.9 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 422,076 432,068 433,999 437,010 436,338 423,941 420,186 415,737 406,639 396,007 397,518 389,287 392,641 22 Private 327,102 333,514 324,435 331,269 323,518 317,516 309,354 301,861 295,482 292,403 287,387 281,144 284,708 23 Residential 198,101 196,551 186,852 187,083 184,409 179,713 174,573 169,292 164,751 161,730 154,704 154,145 153,436 24 Nonresidential, total 129,001 136,963 137,583 144,186 139,109 137,803 113344,,778811 113322,,556699 130,731 113300,,667733 113322,,668833 112266,,999999 113311,,227722 Buildings 25 Industrial 14,931 18,506 20,563 23,609 20,239 19,862 19,598 19,530 20,748 20,854 21,150 20,214 21,328 26 Commercial 58,104 59,389 54,630 56,951 55,347 53,648 51,880 49,806 49,534 48,623 48,281 45,641 47,642 27 Other 17,278 17,848 18,824 19,792 19,801 20,267 19,606 19,377 18,428 18,503 18,789 18,392 19,462 28 Public utilities and other 38,688 41,220 43,566 43,834 43,722 44,026 43,697 43,856 42,021 42,693 44,463 42,752 42,840 29 Public 94,971 98,551 109,564 105,741 112,820 106,425 110,833 113,877 111,157 103,604 110,131 108,144 107,933 30 Military 3,579 3,520 3,735 3,308 2,888 2,543 1,981 2,982 1,890 2,164 1,960 1,992 1,981 31 Highway 30,140 29,502 31,987 28,775 31,865 31,322 33,231 35,289 34,562 27,310 32,736 31,493 29,327 32 Conservation and development... 4,726 4,969 4,735 4,460 4,776 3,482 4,939 5,068 5,486 5,608 5,415 4,455 5,741 33 Other 56,526 60,560 69,107 69,198 73,291 69,078 70,682 70,538 69,219 68,522 70,020 70,204 70,884 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) Index level 1990 1991 May 1990 1991 1991 May May June Sept. Dec Mar. Jan/ Feb/ Mar. Apr. May CONSUMER PRICES2 (1982-84=100) 1 AU items 4.4 5.0 8.2 4.9 2.4 .2 -.1 2 Food 5.1 4.2 2.5 4.6 3.9 2.4 .6 -.2 .2 .7 3 Energy items -.7 5.6 1.2 44.2 18.0 -30.7 -2.4 -4.0 -2.6 -.7 4 All items less food and energy. 4.8 5.1 4.6 6.0 3.8 6.8 .7 .1 .2 5 6 C Se o r m vi m ce o s d ities 5 3 . . 5 3 4 5 . . 1 5 2 5 . . 0 5 3 7 . . 3 2 2 4. . 8 3 7 6. . 4 9 1. .7 0 1. .6 0 -.1 .3 . . 2 1 PRODUCER PRICES (1982=100) 1 9 7 8 0 Fin C C O i o o s th h n n e e s s r d u u m m c g o e e o n r r o s d e f u s o n m o e e r d g r s y g oods -4 3 4 3 . . . . 6 9 1 5 1 3 3 3 1 . . . . 7 4 9 4 - -4 1 3 1 . . . . 6 6 8 0 1 1 1 3 2 8 1 . . . . 5 3 7 3 21 5 3 1 . . . . 1 4 3 1 -3 -4 7 5 . . . . 5 2 3 6 -2 -. . 2 2 . 1 -6 -. . . 9 0 .1 4 -3 -. . 3 . 2 . 2 2 -.3 . . . 4 2 4 11 Capital equipment 3.3 3.3 2.7 3.6 3.3 3.2 -.2 .2 -.2 1 1 3 2 Int E e x rm cl e u d d i i a n t g e e m n a er te g r y i als3 -.1 . 3 1 . . 7 2 . . 4 7 1 4 3 . . 0 4 4 2 . . 2 3 - - 1 9 . . 9 5 - - . . 1 9 - - 1 . . 4 1 - - . . 2 4 Crude materials 14 Foods 1.8 -7.0 -3.8 -7.8 -7.3 1.1 -1.1 .2 1.2 -1.0 1 1 5 6 O En th e e rg r y - -1 4 . . 1 9 -5 6 . . 6 7 -3 1 9 3 . . 2 5 30 5 5 . . 9 8 - -1 1 8 8 . . 1 8 -5 -3 3 . . 0 5 4. . 4 3 -14. . 7 1 - - 7 1. . 1 3 -.5 .0 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 • August 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 5,465.1 5,289.3 5,375.4 5,443.3 5,514.6 5,527.3 By source 2 Personal consumption expenditures 3,238.2 3,450.1 3,657.3 3,518.5 3,588.1 3,622.7 3,693.4 3,724.9 3 Durable goods 457.5 474.6 480.3 471.2 492.1 478.4 482.3 468.5 4 Nondurable goods 1,060.0 1,130.0 1,193.7 1,148.8 1,174.7 1,179.0 1,205.0 1,216.0 5 Services 1,720.7 1,845.5 1,983.3 1,898.5 1,921.3 1,965.3 2,006.2 2,040.4 6 Gross private domestic investment 747.1 771.2 741.0 762.7 747.2 759.0 759.7 698.3 7 Fixed investment 720.8 742.9 746.1 737.7 758.9 745.6 750.7 729.2 8 Nonresidential 488.4 511.9 524.1 511.8 523.1 516.5 532.8 524.0 9 Structures 139.9 146.2 147.0 147.1 148.8 147.2 149.8 142.1 10 Producers' durable equipment 348.4 365.7 377.1 364.7 374.3 369.3 383.0 381.9 11 Residential structures 232.5 231.0 222.0 225.9 235.9 229.1 217.9 205.2 12 Change in business inventories 26.2 28.3 -5.0 25.0 -11.8 13.4 9.0 -30.8 13 Nonfarm 29.8 23.3 -7.4 24.1 -17.0 13.0 6.8 -32.4 14 Net exports of goods and services -74.1 -46.1 -31.2 -35.3 -30.0 -24.9 -41.3 -28.8 15 Exports 552.0 626.2 672.8 642.8 661.3 659.7 672.7 697.4 16 Imports 626.1 672.3 704.0 678.1 691.3 684.6 714.1 726.2 17 Government purchases of goods and services 962.5 1,025.6 1,098.1 1,043.3 1,070.1 1,086.4 1,102.8 1,132.9 18 Federal 380.3 400.0 424.0 399.9 410.6 421.9 425.8 437.6 19 State and local 582.3 625.6 674.1 643.4 659.6 664.6 677.0 695.3 By major type of product '20 Final sales, totaj 4,847.5 5,172.5 5,470.2 5,264.3 5,387.2 5,429.9 5,505.6 5,558.2 21 Goods 1,908.9 2,044.4 2,148.3 2,060.9 2,122.8 2,133.1 2,161.4 2,175.9 22 Durable 840.3 894.7 939.0 894.2 941.4 930.1 943.4 941.2 23 Nondurable 1,068.6 1,149.7 1,209.3 1,166.7 1,181.4 1,203.0 1,218.0 1,234.7 24 Services 2,488.6 2,671.2 2,864.5 2,747.5 2,791.3 2,834.2 2,889.6 2,943.0 25 Structures 450.0 456.9 457.4 455.9 473.0 462.5 454.6 439.3 26 Change in business inventories 26.2 28.3 -5.0 25.0 -11.8 13.4 9.0 -30.8 27 Durable goods 19.9 11.9 -11.1 13.2 -21.6 .0 9.8 -32.5 28 Nondurable goods 6.4 16.4 6.0 11.9 9.8 13.4 -.8 1.7 MEMO 29 Total GNP in 1982 dollars 4,016.9 4,117.7 4,157.3 4,133.2 4,150.6 4,155.1 4,170.0 4,153.4 NATIONAL INCOME 30 Total 3,984.9 4,223.3 4,418.4 4,267.1 4,350.3 4,411.3 4,452.4 4,459.7 31 Compensation of employees 2,905.1 3,079.0 3,244.2 3,128.6 3,180.4 3,232.5 3,276.9 3,286.9 32 Wages and salaries 2,431.1 2,573.2 2,705.3 2,612.7 2,651.6 2,696.3 2,734.2 2,738.9 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 2,197.2 2,126.0 2,154.5 2,190.6 2,222.9 2,220.8 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 354.2 379.3 402.5 381.7 404.0 401.7 397.9 406.2 39 Business and professional1 310.5 330.7 352.6 336.0 346.6 350.8 355.6 357.4 40 Farm1 43.7 48.6 49.9 45.7 57.4 51.0 42.4 48.8 41 Rental income of persons2 16.3 8.2 6.9 4.1 5.5 4.3 8.4 9.3 42 Corporate profits1 337.6 311.6 298.3 290.9 296.8 306.6 300.7 288.9 43 Profits before tax3 316.7 307.7 304.7 289.8 296.9 299.3 318.5 304.1 44 Inventory valuation adjustment -27.0 -21.7 -11.4 -14.5 -11.4 -.5 -19.8 -13.8 45 Capital consumption adjustment 47.8 25.5 4.9 15.6 11.3 7.7 2.0 -1.4 46 Net interest 371.8 445.1 466.7 461.7 463.6 466.2 468.3 468.4 1. With inventory valuation and capital consumption adjustments. 3. For after-tax profits, dividends, and the like, see table 1.48. 2. With capital consumption adjustment. SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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 AAccccoouunntt 11998888 11998899 11999900 Q4 QL Q2 Q3 Q4 PERSONAL INCOME AND SAVING 1 Total personal income 4,070.8 4,384.3 4,645.5 4,469.2 4,562.8 4,622.2 4,678.5 4,718.5 ? 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 2,738.9 Commodity-producing industries 696.4 720.6 729.3 721.4 724.6 731.1 735.3 726.0 4 Manufacturing 524.0 541.8 546.8 540.9 541.2 548.1 551.8 546.1 Distributive industries 572.0 604.7 637.2 614.6 627.0 637.3 642.7 641.9 6 Service industries 716.2 771.4 830.8 790.0 802.9 822.2 844.9 853.0 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 354.2 379.3 402.5 381.7 404.0 401.7 397.9 406.2 10 Business and professional1 310.5 330.7 352.6 336.0 346.6 350.8 355.6 357.4 11 Farm 43.7 48.6 49.9 45.7 57.4 51.0 42.4 48.8 1? Rental income of persons 16.3 8.2 6.9 4.1 5.5 4.3 8.4 9.3 N Dividends 102.2 114.4 123.8 118.2 120.5 122.9 124.9 126.7 14 Personal interest income 547.9 643.2 680.4 664.9 670.5 678.0 685.3 687.9 IS Transfer payments 587.7 636.9 694.8 655.9 680.9 686.7 696.4 715.1 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 4,645.5 4,469.2 4,562.8 4,622.2 4,678.5 4,718.5 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 3,946.1 3,799.6 3,887.7 3,925.7 3,969.1 4,001.9 21 LESS: Personal outlays 3,333.6 3,553.7 3,766.0 3,625.5 3,696.4 3,730.6 3,802.6 3,834.4 22 EQUALS: Personal saving 145.6 171.8 180.1 174.1 191.3 195.1 166.5 167.5 MEMO Per capita (1982 dollars) 73 Gross national product 16,302.4 16,549.6R 16,535.3' 16,544.8' 16,576.4' 1166,,555522..55'' 1166,,556622..99 1166,,444499..44 74 Personal consumption expenditures 10,578.3 10,678.0' 10,665.8' 10,687.4' 10,692.4' 10,671.4' 10,711.5 10,588.7 25 Disposable personal income 11,368.0 11,531.0 11,509.0 11,541.0 11,586.0 11,564.0 11,511.0 11,376.0 26 Saving rate (percent) 4.2 4.6 4.6 4.6 4.9 5.0 4.2 4.2 GROSS SAVING 27 Gross saving 656.1 691.5 657.3 674.8 664.8 679.3 665.9 619.2 78 Gross private saving 751.3 779.3 787.9 786.4 795.0 806.7 772.2 777.8 79 Personal saving 145.6 171.8 180.1 174.1 191.3 195.1 166.5 167.5 10 Undistributed corporate profits1 91.4 53.0 32.2 39.8 36.7 40.5 26.5 25.2 31 Corporate inventory valuation adjustment -27.0 -21.7 -11.4 -14.5 -11.4 -.5 -19.8 -13.8 Capital consumption allowances 3? Corporate 322.1 346.4 363.0 356.5 356.7 335599..77 336655..55 337700..33 33 Noncorporate 192.2 208.0 212.6 216.0 210.3 211.4 213.8 214.8 34 Government surplus, or deficit (-), national income and product accounts -95.3 -87.8 -130.6 -111.6 -130.2 --112277..33 --110066..44 --115588..66 35 -141.7 -134.3 -166.0 -150.1 -168.3 -166.0 -145.7 -184.3 36 State and local 46.5 46.4 35.4 38.5 38.1 38.6 39.3 25.7 37 627.8 674.4 655.6 671.8 665.6 676.1 661.0 619.6 38 Gross private domestic 747.1 771.2 741.0 762.7 747.2 759.0 759.7 698.3 39 Net foreign -119.2 -96.8 -85.5 -90.9 -81.6 -82.9 -98.7 -78.7 40 Statistical discrepancy -28.2 -17.0 -1.7 -3.0 .7 -3.2 -4.9 .4 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 • August 1991 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1990' 1991 Item credits or debits 1988 1989' 1990' Ql Q2 Q3 Q4 QL' 1 Balance on current account -126,237' -106,305 -92,123 -22,667 -22,178 -23,881 -23,402 10,215 2 Not seasonally adjusted -17,223 -20,653 -29,112 -25,136 15,394 Merchandise trade balance -126,986 -115,917 -108,115 -27,537 -24,090 -28,760 -27,728 -18,367 Merchandise exports 320,337 361,451 389,550 95,244 97,088 96,638 100,580 100,861 Merchandise imports -447,323 -477,368 -497,665 -122,781 -121,178 -125,398 -128,308 -119,228 Military transactions, net -5,743' -6,203 -7,219 -1,736 -1,558 -1,683 -2,243 -2,182 Investment income, net 5,353' 2,688 11,945 3,002 7 2,802 6,133 4,652 Other service transactions, net 16,082' 28,618 33,595 7,636 8,156 8,086 9,716 9,173 Remittances, pensions, and other transfers -4,437' -4,420 -4,843 -1,218 -1,123 -1,302 -1,201 -1,295 U.S. government grants -10,506' -11,071 -17,486 -2,813 -3,570 -3,024 -8,079 18,234 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) 2,966' 1,320 2,976 -669 -800 4,759 1,581 1 1 2 3 Ch G an ol g d e in U.S. official reserve assets (increase, -). -3,912 0 -25,293 0 -2,158 0 -3,177 0 371 0 1,739 0 -1,091 0 -353 0 14 Special drawing rights (SDRs) 127 -535 -192 -247 -216 363 -93 31 15 Reserve position in International Monetary Fund. 1,025 471 731 234 493 8 -4 -341 16 Foreign currencies -5,064 -25,229 -2,697 -3,164 94 1,368 -995 -43 17 Change in U.S. private assets abroad (increase, -). -85,111' -104,637 -58,524 40,993 -33,033 -28,114 -38,370 5,953 18 Bank-reported claims -56,322 -51,255 5,333 57,085 -17,255 -9,984 -24,513 23,900 19 Nonbank-reported claims -3,064' 2,581 -1,944 1,649 -1,760 676 -2,509 20 U.S. purchase of foreign securities, net --Y7,l8t4f6Y -22,575 -28,476 -8,756 -11,160 -1,014 -7,546 ' -9,426 21 U.S. direct investments abroad, net -33,388 -33,437 -8,985 -2,858 -17,792 -3,802 -8,521 22 Change in foreign official assets in United States (increase, +) .. 39,657' 8,624 32,425 -7,022 5,805 13,341 20,301 6,534 23 U.S. Treasury securities 41,741 149 28,643 -5,786 2,461 11,849 20,119 2,220 24 Other U.S. government obligations 1,309 1,383 667 -521 346 134 708 -29 25 Other U.S. government liabilities -568' 281 1,703 -292 1,141 -248 1,102 987 26 Other U.S. liabilities reported by U.S. banks3 -319 4,976 2,998 -297 2,131 1,871 -707 2,590 27 Other foreign official assets -2,506 1,835 -1,586 -126 -274 -265 -921 766 28 Change in foreign private assets in United States (increase, +).. 181,877' 207,925 53,879 -26,059 25,452 35,754 18,732 -8,458 29 U.S. bank-reported liabilities3 70,235 63,382 9,975 -43,234 8,980 26,968 17,261 -19,419 30 U.S. nonbank-reported liabilities 5,626' 5,454 3,779 660 699 4,260 -1,840 31 Foreign private purchases of U.S. Treasury securities, net 20,239 29,618 1,131 -1,151 4,287 24 -2,029 3,910 32 Foreign purchases of other U.S. securities, net 26,353 38,920 1,781 1,397 2,140 -2,558 802 5,026 33 Foreign direct investments in United States, net 59,424' 70,551 37,213 16,269 9,346 7,060 4,538 2,025 34 Allocation of SDRs 0 0 0 0 0 0 0 0 35 Discrepancy -9,24(K 18,366 63,526 18,601 24,383 1,475 19,072 -15,472 36 Owing to seasonal adjustments 4,367 105 -6,473 2,007 4,135 37 Statistical discrepancy in recorded data before seasonal adjustment -9,240' 18,366 63,526 14,235 24,278 -19,607 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) -3,912 -25,293 -2,158 -3,177 371 1,739 -1,091 -353 39 Foreign official assets in United States (increase, +) excluding line 25 40,225 8,343 30,722 -6,730 4,664 13,589 19,199 5,547 40 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22 above) -2,996 10,738 2,163 3,094 -1,699 1,109 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 1991r IItteemm 11998888 11998899 11999900 Oct. Nov. Dec. Jan. Feb. Mar. Apr/ 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments, f.a.s. value 322,426 363,812 393,592 34,631 33,586 33,570 34,144 33,599 34,031 35,559 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 2 Customs value 440,952 473,211 495,311 44,527 43,123 39,895 41,520 39,103 38,100 40,338 Trade balance 3 Customs value -118,526 -109,399 -101,718 -9,897 -9,536 -6,325 -7,376 -5,504 -4,070 --44,,777799 1. The Census basis data differ from merchandise trade data shown in table tions; military payments are excluded and shown separately as indicated above. 3.10, U.S. International Transactions Summary, for reasons of coverage and As of Jan. 1, 1987 census data are released 45 days after the end of the month; the timing. On the export side, the largest adjustment is the exclusion of military sales previous month is revised to reflect late documents. Total exports and the trade (which are combined with other military transactions and reported separately in balance reflect adjustments for undocumented exports to Canada. the "service account" in table 3.10, line 6). On the import side, additions are made SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade" for gold, ship purchases, imports of electricity from Canada, and other transac- (Department of Commerce, Bureau of the Census). 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 1990 1991 TTyyppee 11998877 11998888 11998899 Nov. Dec. Jan. Feb. Mar. Apr. May" 1 Total 45,798 47,802 74,609 83,041 83,316 85,006 82,797 78,297 78,297 78,263 2 Gold stock, including Exchange Stabilization Fund1 11,078 11,057 11,059 11,059 11,058 11,058 11,058 11,058 11,058 11,057 3 Special drawing rights2,3 10,283 9,637 9,951 11,059 10,989 10,922 10,958 10,368 10,325 10,515 4 Reserve position in International Monetary Fund2 11,349 9,745 9,048 8,871 9,076 9,468 9,556 8,910 8,806 8,854 5 Foreign currencies4 13,088 17,363 44,551 52,052 52,193 53,558 51,225 47,666 48,108 47,837 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 p Nov. Dec. Jan. Feb. Mar. Apr. May 1 Deposits 244 347 589 264 369 271 329 228 292 196 Assets held in custody 2 U.S. Treasury securities2 195,126 232,547 224,911 272,399 278,499 286,722 286,471 272,505 271,779 279,695 3 Earmarked gold3 13,919 13,636 13,456 13,389 13,387 13,377 13,382 13,374 13,363 13,358 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 • August 1991 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data1 Millions of dollars, end of period 1990 1991 Oct. Nov. Dec. Jan. Feb. Mar. Apr. All foreign countries 1 Total, all currencies 518,618 505,595 545,366 552,542 558,626 556,925 563,997 560,968 546,491 537,891 2 Claims on United States 138,034 169,111 198,835 177,571 180,938 188,4% 183,991 188,174 182,828r 180,627 3 Parent bank 105,845 129,856 157,092 135,568 140,302 148,837 141,498 145,%7 142,683' 141,580 4 Other banks in United States 16,416 14,918 17,042 13,261 12,937 13,296 14,541 12,887 12,268 12,085 5 Nonbanks 15,773 24,337 24,701 28,742 27,699 26,363 27,952 29,320 27,877 26,%2 6 Claims on foreigners 342,520 299,728 300,575 319,318 323,020 312,449 321,247 313,595 307,102 300,456 7 Other branches of parent bank 122,155 107,179 113,810 128,747 135,177 135,003 132,157 124,584 129,529 121,961 8 Banks 108,859 96,932 90,703 82,706 81,440 72,602 81,219 80,030 72,757 72,549 9 Public borrowers 21,832 17,163 16,456 16,335 16,591 17,555 18,260 17,893 17,915 17,825 10 Nonbank foreigners 89,674 78,454 79,606 91,530 89,812 87,289 89,611 91,088 86,901 88,121 11 Other assets 38,064 36,756 45,956 55,653 54,668 55,980 58,759 59,199 56,561' 56,808 12 Total payable in U.S. dollars 350,107 357,573 382,498 362,537 371,753 379,479 380,116 380,180 381,848 371,999 13 Claims on United States 132,023 163,456 191,184 168,988 172,336 180,174 175,909 180,601 175,741' 173,933 14 Parent bank 103,251 126,929 152,294 129,882 134,436 142,962 135,793 140,789 137,738' 137,343 15 Other banks in United States 14,657 14,167 16,386 12,441 12,088 12,513 13,739 12,266 11,757 11,624 16 Nonbanks 14,115 22,360 22,504 26,665 25,812 24,699 26,377 27,546 26,246 24,966 17 Claims on foreigners 202,428 177,685 169,690 168,722 174,832 174,451 179,762 173,527 180,415 173,044 18 Other branches of parent bank 88,284 80,736 82,949 90,198 95,599 95,298 93,847 87,394 95,106 87,895 19 Banks 63,707 54,884 48,396 37,531 37,795 36,440 41,134 40,785 40,451 40,407 20 Public borrowers 14,730 12,131 10,961 11,201 11,202 12,298 13,136 12,944 13,206 12,996 21 Nonbank foreigners 35,707 29,934 27,384 29,792 30,236 30,415 31,645 32,404 31,652 31,746 22 Other assets 15,656 16,432 21,624 24,827 24,585 24,854 24,445 26,052 25,692r 25,022 United Kingdom 23 Total, all currencies 158,695 156,835 161,947 184,660 188,182 184,818 184,817 180,211 175,025 168,917 24 Claims on United States 32,518 40,089 39,212 39,862 42,301 45,560 40,197 41,278 41,448' 38,136 25 Parent bank 27,350 34,243 35,847 35,904 38,453 42,413 36,533 37,662 38,291' 34,930 26 Other banks in United States 1,259 1,123 1,058 694 1,088 792 1,095 924 848 1,179 27 Nonbanks 3,909 4,723 2,307 3,264 2,760 2,355 2,569 2,692 2,309 2,027 28 Claims on foreigners 115,700 106,388 107,657 122,203 124,077 115,536 121,077 115,361 110,329 107,031 29 Other branches of parent bank 39,903 35,625 37,728 47,390 49,499 46,367 47,857 41,653 44,341 40,730 30 Banks 36,735 36,765 36,159 35,480 36,135 31,604 34,050 34,518 30,660 30,608 31 Public borrowers 4,752 4,019 3,293 3,521 3,675 3,860 3,953 4,029 3,943 3,711 32 Nonbank foreigners 34,310 29,979 30,477 35,812 34,768 33,705 35,217 35,161 31,385 31,982 33 Other assets 10,477 10,358 15,078 22,595 21,804 23,722 23,543 23,572 23,248' 23,750 34 Total payable in U.S. dollars 100,574 103,503 103,208 109,950 115,182 116,762 114,413 113,673 114,347 108,600 35 Claims on United States 30,439 38,012 36,404 35,429 37,668 41,259 36,120 37,644 37,971' 35,058 36 Parent bank 26,304 33,252 34,329 33,145 35,614 39,609 33,754 35,345 36,068' 32,973 37 Other banks in United States 1,044 964 843 419 611 334 771 615 562 976 38 Nonbanks 3,091 3,796 1,232 1,865 1,443 1,316 1,595 1,684 1,341 1,109 39 Claims on foreigners 64,560 60,472 59,062 63,720 66,876 63,701 67,996 64,682 65,034 62,183 40 Other branches of parent bank 28,635 28,474 29,872 37,069 39,630 37,142 38,120 33,136 36,150 32,842 41 Banks 19,188 18,494 16,579 13,571 13,915 13,135 14,905 15,840 15,097 15,460 42 Public borrowers 3,313 2,840 2,371 2,790 2,862 3,143 3,242 3,290 3,220 3,193 43 Nonbank foreigners 13,424 10,664 10,240 10,290 10,469 10,281 11,729 12,416 10,567 10,688 44 Other assets 5,575 5,019 7,742 10,801 10,638 11,802 10,297 11,347 11,342' 11,359 Bahamas and Caymans 45 Total, all currencies 160,321 170,639 176,006 153,529 153,850 162,316 167,306 168,209 163,315 164,565 46 Claims on United States 85,318 105,320 124,205 107,009 106,694 112,989 115,806 118,783 110,727 113,532 47 Parent bank 60,048 73,409 87,882 70,877 71,416 77,873 78,350 81,888 75,485 79,818 48 Other banks in United States 14,277 13,145 15,071 11,605 11,017 11,869 12,877 11,380 10,753 10,063 49 Nonbanks 10,993 18,766 21,252 24,527 24,261 23,247 24,579 25,515 24,489 23,651 50 Claims on foreigners 70,162 58,393 44,168 38,062 38,669 41,356 42,801 40,363 43,665 41,877 51 Other branches of parent bank 21,277 17,954 11,309 12,152 12,697 13,416 12,292 11,477 13,658 12,364 52 Banks 33,751 28,268 22,611 15,994 16,299 16,310 18,343 16,863 17,571 17,458 53 Public borrowers 7,428 5,830 5,217 4,876 4,775 5,807 6,528 6,484 6,846 6,556 54 Nonbank foreigners 7,706 6,341 5,031 5,040 4,898 5,823 5,638 5,539 5,590 5,499 55 Other assets 4,841 6,926 7,633 8,458 8,487 7,971 8,699 9,063 8,923 9,156 56 Total payable in U.S. dollars 151,434 163,518 170,780 149,271 149,754 158,390 162,458 163,533 159,226 160,577 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr. All foreign countries 57 Total, all currencies 518,618 505,595 545,366 552,542 558,626 556,925 563,997 560,968 546,491 537,891 58 Negotiable CDs 30,929 28,511 23,500 22,089 21,521 18,060 19,106 18,595 19,920 19,484 59 To United States 161,390 185,577 197,239 167,575 171,592 189,412 186,279 187,562 185,178 180,131 60 Parent bank 87,606 114,720 138,412 113,098 115,519 138,748 134,118 132,227 128,009 123,866 61 Other banks in United States . 20,355 14,737 11,704 7,984 9,140 7,463 9,341 10,580 10,961 9,944 62 Nonbanks 53,429 56,120 47,123 46,493 46,933 43,201 42,820 44,755 46,208 46,321 63 To foreigners 304,803 270,923 296,850 327,139 328,534 311,668 319,854 316,605 305,804 300,772 64 Other branches of parent bank 124,601 111,267 119,591 131,045 137,849 139,113 132,214 124,437 128,916 122,542 65 Banks 87,274 72,842 76,452 75,815 72,352 58,986 70,222 73,856' 63,304r 64,283 66 Official institutions 19,564 15,183 16,750 18,436 17,9% 14,791 17,343 16,665r 15,864' 18,398 67 Nonbank foreigners 73,364 71,631 84,057 101,843 100,337 98,778 100,075 101,647 97,720 95,549 68 Other liabilities 21,496 20,584 27,777 35,739 36,979 37,785 38,758 38,206 35,589 37,504 69 Total payable in U.S. dollars 361,438 367,483 396,613 363,963 372,359 383,581 384,395 380,601 380,871 372,728 70 Negotiable CDs 26,768 24,045 19,619 17,022 16,845 14,094 15,141 14,446 15,335 14,882 71 To United States 148,442 173,190 187,286 153,350 157,013 175,713 172,189 174,661 172,900 168,831 72 Parent bank 81,783 107,150 132,563 104,651 106,951 130,569 126,067 125,022 120,883 117,356 73 Other banks in United States . 18,951 13,468 10,519 6,486 7,686 6,052 7,627 8,715 9,415 8,509 74 Nonbanks 47,708 52,572 44,204 42,213 42,376 39,092 38,495 40,924 42,602 42,966 75 To foreigners 177,711 160,766 176,460 178,969 183,461 179,002 182,131 175,761 177,902 173,589 76 Other branches of parent bank 90,469 84,021 87,636 89,658 95,556 98,128 94,765 87,288 93,910 88,299 77 Banks 35,065 28,493 30,537 23,669 25,022 20,251 23,661 25,536' 23,769' 22,892 78 Official institutions 12,409 8,224 9,873 9,689 9,091 7,921 10,585 10,021' 9,205r 11,568 79 Nonbank foreigners 39,768 40,028 48,414 55,953 53,792 52,702 53,120 52,916 51,018 50,830 80 Other liabilities 8,517 9,482 13,248 14,622 15,040 14,772 14,934 15,733 14,734 15,426 United Kingdom 81 Total, all currencies 158,695 156,835 161,947 184,660 188,182 184,818 184,817 180,211 175,025 168,917 82 Negotiable CDs 26,988 24,528 20,056 17,557 17,144 14,256 14,872 14,363 15,820 15,162 83 To United States 23,470 36,784 36,036 32,143 36,500 39,928 34,389 34,070 34,453 28,450 84 Parent bank 13,223 27,849 29,726 22,013 26,165 31,806 25,548 25,670 26,213 21,676 85 Other banks in United States . 1,536 2,037 1,256 1,430 1,671 1,505 1,861 1,401 1,230 1,175 86 Nonbanks 8,711 6,898 5,054 8,700 8,664 6,617 6,980 6,999 7,010 5,599 87 To foreigners 98,689 86,026 92,307 114,959 113,958 108,531 113,754 110,454 105,090 103,976 88 Other branches of parent bank 33,078 26,812 27,397 32,357 34,406 36,709 34,547 30,978 33,084 31,860 89 Banks 34,290 30,609 29,780 33,870 32,844 25,126 31,765 32,784r 26,609' 27,001 90 Official institutions 11,015 7,873 8,551 10,788 9,534 8,361 10,368 9,745' 8,%9' 11,300 91 Nonbank foreigners 20,306 20,732 26,579 37,944 37,174 38,335 37,074 36,947 36,428 33,815 92 Other liabilities 9,548 9,497 13,548 20,001 20,580 22,103 21,802 21,324 19,662 21,329 93 Total payable in U.S. dollars — 102,550 105,907 108,178 108,064 114,090 116,153 114,367 112,343 112,427 106,627 94 Negotiable CDs 24,926 22,063 18,143 15,237 15,100 12,710 13,387 12,790 13,816 13,291 95 To United States 17,752 32,588 33,056 26,867 31,117 34,756 29,114 29,705 30,225 24,749 96 Parent bank 12,026 26,404 28,812 20,334 24,381 30,014 23,945 24,389 24,896 20,450 97 Other banks in United States . 1,308 1,752 1,065 1,035 1,318 1,156 1,324 926 800 848 98 Nonbanks 4,418 4,432 3,179 5,498 5,418 3,586 3,845 4,390 4,529 3,451 99 To foreigners 55,919 47,083 50,517 57,639 59,787 60,014 63,702 60,977 59,985 59,440 100 Other branches of parent bank 22,334 18,561 18,384 20,797 23,288 25,957 24,954 21,339 24,049 22,452 101 Banks 15,580 13,407 12,244 10,465 11,911 9,488 11,539 12,976' 10,112' 9,931 102 Official institutions 7,530 4,348 5,454 5,751 5,000 4,692 7,158 6,587' 6,188' 8,239 103 Nonbank foreigners 10,475 10,767 14,435 20,626 19,588 19,877 20,051 20,075 19,636 18,818 104 Other liabilities 3,953 4,173 6,462 8,321 8,086 8,673 8,164 8,871 8,401 9,147 Bahamas and Caymans 105 Total, all currencies 160,321 170,639 176,006 153,529 153,850 162,316 167,306 168,209 163,315 164,565 106 Negotiable CDs 885 953 678 560 561 646 654 629 729 674 107 To United States 113,950 122,332 124,859 103,577 104,086 114,738 120,658 122,148 118,512 120,849 108 Parent bank 53,239 62,894 75,188 62,506 61,350 74,941 80,567 78,173 72,314 73,801 109 Other banks in United States . 17,224 11,494 8,883 4,959 5,798 4,526 5,655 7,618 8,209 7,543 110 Nonbanks 43,487 47,944 40,788 36,112 36,938 35,271 34,436 36,357 37,989 39,505 111 To foreigners 43,815 45,161 47,382 46,867 46,299 44,444 42,883 42,555 41,417 40,154 112 Other branches of parent bank 19,185 23,686 23,414 25,864 25,579 24,715 23,099 22,923 22,018 21,398 113 Banks 10,769 8,336 8,823 6,794 6,569 5,588 6,063 6,188 6,274 5,837 114 Official institutions 1,504 1,074 1,097 703 763 622 811 728 674 676 115 Nonbank foreigners 12,357 12,065 14,048 13,506 13,388 13,519 12,910 12,716 12,451 12,243 116 Other liabilities 1,671 2,193 3,087 2,525 2,904 2,488 3,111 2,877 2,657 2,888 117 Total payable in U.S. dollars — 152,927 162,950 171,250 147,781 148,197 157,132 162,118 162,850 158,232 160,343 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • August 1991 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1990 1991 IItteemm 11998888 11998899 Sept. Oct. Nov. Dec. Jan. Feb/ Mar. 1 Total1 304,132 312,477 324,007 329,964 340,542 343,908 352,084 361,632 349,552 By type 2 Liabilities reported by banks in the United States 31,519 36,4% 40,202 44,681 43,170 39,494 41,450 43,144 42,153 3 U.S. Treasury bills and certificates3 103,722 76,985 72,472 72,457 80,220 78,493 82,520 82,611 82,484 U.S. Treasury bonds and notes 4 Marketable 152,429 179,269 189,159 190,534 195,305 203,185 205,726 213,043 201,353 5 Nonmarketable4 523 568 3,717 3,741 3,765 4,491 4,521 4,550 4,580 6 U.S. securities other than U.S. Treasury securities5 15,939 19,159 18,457 18,551 18,082 18,245 17,867 18,284 18,982 By area 7 Western Europe1 123,752 133,417 156,275 163,363 169,277 171,170 173,005 178,009 170,381 8 Canada 9,513 9,482 10,171 8,903 8,639 8,598 8,106 7,927 8,494 9 Latin America and Caribbean 10,030 8,745 11,776 11,615 14,298 15,777 16,379 18,307 19,433 10 Asia 151,887 153,338 136,333 137,032 139,235 138,159 143,617 146,226 139,796 11 Africa 1,403 1,030 1,383 1,305 1,404 1,433 1,659 1,439 1,802 12 Other countries6 7,548 6,469 8,068 7,748 7,692 8,071 8,612 9,013 8,930 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 1991 IItteemm 11998877 11998888 11998899 June Sept. Dec. Mar. 1 Banks' own liabilities 555555,,,444333888 777444,,,999888000 666777,,,888333555 666888,,,666555000 666999,,,888222777 666999,,,222777555 666444,,,000111999 2 Banks' own claims 555111,,,222777111 666888,,,999888333 666555,,,111222777 666666,,,666888000 666888,,,000666444 666666,,,111000888 666777,,,444000555 111888,,,888666111 222555,,,111000000 222000,,,444999111 222000,,,222888111 222333,,,777111888 222555,,,555222666 222777,,,666222888 333222,,,444111000 444333,,,888888444 444444,,,666333666 444666,,,333999999 444444,,,333444666 444000,,,555888222 333999,,,777777777 5 Claims of banks' domestic customers2 555555111 333666444 333,,,555000777 222,,,666111222 222,,,888444333 666,,,555666333 777,,,333555777 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 Holder and type of liability 1989 1990 Oct. Nov. Dec. Feb. Mar/ 1 All foreigners 685,339 736,878 755,455 737,343 744,298 755,455 754,968 759,256' 748,964 2 Banks' own liabilities 514,532 577,498 577,424 564,094 561,298 577,424 569,835 574,904' 568,761 3 Demand deposits 21,863 22,032 21,734 20,212 19,680 21,734 19,696 20,129' 20,207 4 Time deposits 152,164 168,780 168,0% 158,674 162,289 168,0% 159,427 162,287 163,918 5 Other. 51,366 67,823 67,560 75,398 72,280 67,560 76,804 73,974' 71,635 6 Own foreign offices4 289,138 318,864 320,034 309,810 307,049 320,034 313,908 318,514' 313,001 7 Banks' custody liabilities5 170,807 159,380 178,031 173,250 183,000 178,031 185,132 184,352 180,203 8 U.S. Treasury bills and certificates6 115,056 91,100 98,179 94,821 101,243 98,179 105,801 105,302' 103,472 9 Other negotiable and readily transferable instruments' 16,426 19,526 17,408 17,680 18,294 17,408 17,886 18,181' 17,485 10 Other 39,325 48,754 62,444 60,748 63,464 62,444 61,445 60,869 59,246 11 Nonmonetary international and regional organizations 3,224 4,894 5,918 5,404 5,324 5,918 7,908 6,555 6,528 12 Banks' own liabilities 2,527 3,279 4,540 4,369 3,179 4,540 6,431 4,092 4,665 13 Demand deposits 71 96 36 57 33 36 67 40 22 14 Time deposits 1,183 927 1,038 885 773 1,038 1,587 1,672 1,914 15 Other 1,272 2,255 3,467 3,427 2,373 3,467 4,776 2,381 2,729 16 Banks' custody liabilities5 698 1,616 1,378 1,034 2,145 1,378 1,478 2,462 1,863 17 U.S. Treasury bills and certificates 57 197 364 248 1,077 364 423 1,620 1,103 18 Other negotiable and readily transferable 19 Othe i r n struments7 641 0 1,417 2 1,014 0 782 5 1,0 4 2 6 2 1,014 0 1,00 5 5 0 842 0 760 0 20 Official institutions9 135,241 113,481 117,988 117,137 123,390 117,988 123,970 125,755' 124,638 21 Banks' own liabilities 27,109 31,108 34,698 39,893 38,065 34,698 37,558 38,848' 38,589 22 Demand deposits 1,917 2,1% 1,940 2,121 1,784 1,940 1,686 1,577 1,645 23 Time deposits 9,767 10,495 13,965 11,535 12,824 13,965 11,850 13,397' 14,046 24 Other 15,425 18,417 18,793 26,237 23,457 18,793 24,022 23,873 22,898 25 Banks' custody liabilities5 108,132 82,373 83,290 77,244 85,325 83,290 86,413 86,908 86,048 26 U.S. Treasury bills and certificates 103,722 76,985 78,493 72,457 80,220 78,493 82,520 82,611 82,484 27 Other negotiable and readily transferable instruments7 4,130 5,028 4,594 4,361 4,725 4,594 3,712 3,923 3,472 28 Other 280 361 203 427 380 203 180 374 92 29 Banks10 459,523 515,275 537,076 514,636 519,067 537,076 524,635 530,711' 522,902 30 Banks' own liabilities 409,501 454,273 458,053 436,852 438,014 458,053 446,155 451,053' 445,455 31 Unaffiliated foreign banks 120,362 135,409 138,018 127,041 130,965 138,018 132,247 132,539' 132,454 32 Demand deposits 9,948 10,279 10,048 8,989 8,9% 10,048 8,992 9,508 10,039 33 Time deposits 80,189 90,557 89,040 80,187 83,620 89,040 81,613 82,443' 84,085 34 Other. 30,226 34,573 38,930 37,866 38,349 38,930 41,641 40,588' 38,330 35 Own foreign offices4 289,138 318,864 320,034 309,810 307,049 320,034 313,908 318,514' 313,001 36 Banks' custody liabilities5 50,022 61,002 79,024 77,785 81,053 79,024 78,480 79,658 77,447 37 U.S. Treasury bills and certificates 7,602 9,367 12,958 13,642 13,510 12,958 12,803 13,937 13,501 38 Other negotiable and readily transferable instruments7 5,725 5,124 5,356 5,840 5,841 5,356 6,129 6,498 6,403 36,694 46,510 60,710 58,303 61,701 60,710 59,548 59,222 57,543 39 Other 87,351 103,228 94,473 100,166 96,518 94,473 98,454 96,235' 94,896 40 Other foreigners 75,396 88,839 80,134 82,980 82,040 80,134 79,692 80,911' 80,051 41 Banks' own liabilities 9.928 9,460 9,710 9,045 8,868 9,710 8,951 9,004' 8,500 42 Demand deposits 61,025 66,801 64,054 66,067 65,072 64,054 64,377 64,775 63,873 43 Time deposits 4,443 12,577 6,370 7,868 8,100 6,370 6,365 7,132' 7,678 44 Other. 45 Banks' custody liabilities5 11,956 14,389 14,339 17,186 14,477 14,339 18,762 15,324 14,845 46 U.S. Treasury bills and certificates 3,675 4,551 6,363 8,476 6,436 6,363 10,055 7,133 6,384 47 Other negotiable and readily transferable instruments7 5.929 7,958 6,445 6,697 6,705 6,445 7,040 6,918' 6,850 48 Other 2,351 1,880 1,531 2,013 1,336 1,531 1,667 1,272 1,611 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 6,425 7,203 7,022 6,199 6,466 7,022 6,963 6,718 7,157 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 • August 1991 3.17—Continued 1990 1991 AArreeaa aanndd ccoouunnttrryy 11998888 11998899 11999900 Oct. Nov. Dec. Jan. Feb. Mar.' Apr." 1 Total 685,339 736,878 755,455 737,343 744,298 755,455 754,968 759,256' 748,964 731,871 2 Foreign countries 682,115 731,984 749,537 731,940 738,974 749,537 747,059 752,701' 742,436 725,481 3 Europe 231,912 237,501 254,960 245,718 247,225 254,960 247,883 250,367' 250,112 240,938 4 Austria 1,155 1,233 1,229 1,401 1,385 1,229 1,615 1,522' 1,494 1,129 5 Belgium-Luxembourg 10,022 10,648 12,407 12,207 11,510 12,407 12,382 12,559 12,238 12,405 6 Denmark 2,200 1,415 1,405 1,985 1,779 1,405 1,121 1,019 989 951 7 Finland 285 570 602 660 422 602 404 489 662 724 8 France 24,777 26,903 30,946 29,131 29,196 30,946 29,371 28,056' 2288,,221111 26,765 9 Germany 6,772 7,578 7,386 8,438 8,196 7,386 8,262 9,604 88,,998888 88,,446611 10 Greece 672 1,028 934 993 949 934 895 797 747 880088 11 Italy 14,599 16,169 17,736 16,732 16,051 17,736 16,167 17,515' 17,367 14,857 12 Netherlands 5,316 6,613 5,375 6,082 6,056 5,375 5,680 6,40c 6,204 6,939 13 Norway 1,559 2,401 2,358 1,875 2,330 2,358 2,181 2,078 2,121 1,114 14 Portugal 903 2,418 2,958 2,985 2,959 2,958 2,877 2,684 2,778 2,628 15 Spain 5,494 4,364 7,694 5,312 7,347 7,694 8,964 8,224 9,934 10,145 16 Sweden 1,284 1,491 1,837 1,706 2,304 1,837 1,256 710 1,159 731 17 Switzerland 34,199 34,496 36,915 34,239 34,031 36,915 35,570 37,209' 38,546 36,701 18 Turkey 1,012 1,818 1,169 1,451 1,358 1,169 1,124 1,195 1,480 1,500 19 United Kingdom 111,811 102,362 109,527 100,983 103,034 109,527 102,371 103,843' 102,973 101,345 20 Yugoslavia 529 1,474 928 1,753 1,571 928 1,030 959 848 1,034 21 Other Western Europe 8,598 13,563 11,889 16,258 15,141 11,889 14,348 12,800 10,545 9,810 22 U.S.S.R 138 350 119 234 220 119 196 88 106 138 23 Other Eastern Europe 591 608 1,546 1,294 1,388 1,546 2,071 2,614 2,722 2,755 24 Canada 21,062 18,865 20,332 19,654 20,679 20,332 19,215 23,836 23,445 23,254 25 Latin America and Caribbean 271,146 311,028 326,995 319,932 318,387 326,995 332,977 336,609' 326,719 325,991 26 Argentina 7,804 7,304 7,366 7,722 7,664 7,366 7,659 7,678 7,872 7,708 27 Bahamas 86,863 99,341 107,311 98,330 97,689 107,311 105,055 102,384' 96,435 96,284 28 Bermuda 2,621 2,884 2,809 2,482 2,518 2,809 3,101 3,035' 2,838 2,765 29 Brazil 5,314 6,351 5,853 5,915 6,470 5,853 5,945 6,274' 6,431 5,804 30 British West Indies 113,840 138,309 140,569 144,374 141,385 140,569 148,066 154,125' 150,319 150,447 31 Chile 2,936 3,212 3,145 3,170 3,422 3,145 3,188 3,064 2,995 3,122 32 Colombia 4,374 4,653 4,492 4,285 4,251 4,492 4,467 44,,330088 3,786 44,,334488 33 Cuba 10 10 11 49 9 11 18 88 7 88 34 Ecuador 1,379 1,391 1,379 1,314 1,310 1,379 1,359 1,332 1,319 1,260 35 Guatemala 1,195 1,312 1,541 1,485 1,478 1,541 1,564 1,580 1,617 1,571 36 Jamaica 269 209 257 219 228 257 224 256 268 233 37 Mexico 15,185 15,423 16,769 16,680 16,501 16,769 17,053 17,299' 17,558 17,654 38 Netherlands Antilles 6,420 6,310 7,381 7,101 7,350 7,381 7,100 6,941' 6,600 6,897 39 Panama 4,353 4,362 4,575 4,617 4,644 4,575 4,336 4,341' 4,506 4,294 40 Peru 1,671 1,984 1,295 1,360 1,327 1,295 1,347 1,323 1,364 1,428 41 Uruguay 1,898 2,284 2,520 2,512 2,446 2,520 2,595 2,641' 2,509 2,463 42 Venezuela 9,147 9,482 12,945 11,365 13,001 12,945 12,846 12,965' 13,168 12,735 43 Other 5,868 6,206 6,779 6,951 6,693 6,779 7,053 7,055 7,127 6,969 44 Asia 147,838 156,201 138,060 137,241 114433,,668844 138,060 113366,,992200 113322,,339933'' 113333,,002288 112266,,772244 China 45 Mainland 1,895 1,773 2,421 2,173 2,493 2,421 2,866 2,72C 3,030 2,415 46 Taiwan 26,058 19,588 11,277 12,237 11,418 11,277 11,119 11,123' 11,285 10,983 47 Hong Kong 12,248 12,416 12,689 13,767 13,843 12,689 14,868 14.79C 15,745 16,100 48 India 699 780 1,225 953 1,116 1,225 1,464 1,628 1,174 986 49 Indonesia 1,180 1,281 1,238 1,261 1,261 1,238 1,191 1,719 1,941 1,309 50 Israel 1,461 1,243 2,767 921 3,075 2,767 2,823 2,509 2,965 2,849 51 Japan 74,015 81,184 68,290 67,925 69,137 68,290 64,182 61,092' 56,820 53,131 52 Korea 2,541 3,215 2,280 2,442 2,732 2,280 2,406 2,186' 2,213 2,887 53 Philippines 1,163 1,766 1,585 1,274 1,549 1,585 1,455 1,655 1,609 1,681 5 5 5 4 M Th i a d i d la le n - d E ast oil-exporting countries i 12 1 , , 0 2 8 36 3 1 2 3 , , 0 3 9 7 3 0 1 1 5 , , 4 8 4 4 3 4 16 1 , , 4 4 1 4 2 8 1 1 7 , , 6 4 8 3 1 1 15 1 , , 8 4 4 4 4 3 1 2 4 , , 2 7 2 3 8 4 1 2 3 , , 1 6 4 9 8 3 ' 1 2 5 , , 4 6 0 4 3 2 1 2 4 , , 5 6 7 5 1 5 56 Other 13,260 17,491 17,002 16,428 17,949 17,002 17,584 17,131 18,199 17,157 17 Africa 3,991 3,824 4,630 4,225 4,390 4,630 5,177 5,157 4,908 4,495 58 Egypt 911 686 1,425 1,099 996 1,425 1,476 1,416 1,449 927 59 Morocco 68 78 104 87 90 104 107 90 91 89 60 South Africa 437 206 228 235 283 228 212 317 312 220 61 Zaire 85 86 53 45 55 53 55 50 52 50 62 Oil-exporting countries 1,017 1,121 1,110 1,050 1,288 1,110 1,508 1,528 1,369 1,434 63 Other 1,474 1,648 1,710 1,708 1,678 1,710 1,819 1,755 1,635 1,776 64 Other countries 6,165 4,564 4,560 5,169 4,610 4,560 4,888 4,339 4,225 4,078 65 Australia 5,293 3,867 3,807 4,371 3,804 3,807 3,882 3,433 3,131 3,118 66 All other 872 697 753 797 807 753 1,007 906 1,094 961 67 Nonmonetary international and regional organizations 33,,222244 4,894 5,918 5,404 5,324 5,918 7,908 6,555 6,528 6,391 68 International 2,503 3,947 4,390 4,289 4,203 4,390 6,428 4,880 4,967 4,748 69 Latin American regional 589 684 1,048 627 809 1,048 975 1,235 1,170 913 70 Other regional6 133 263 479 487 312 479 506 440 391 730 1. Includes the Bank for Internationa] Settlements and Eastern European 4. Comprises Algeria, Gabon, Libya, and Nigeria. countries that are not listed in line 23. 5. Excludes "holdings of dollars" of the International Monetary Fund. 2. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania. 6. Asian, African, Middle Eastern, and European regional organizations, 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and except the Bank for International Settlements, which is included in "Other United Arab Emirates (Trucial States). Western Europe." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A61 3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1 Payable in U.S. Dollars Millions of dollars, end of period 1990 1991 AArreeaa aanndd ccoouunnttrryy 11998888 11998899 11999900 Oct. Nov. Dec. Jan. Feb. Mar.' Apr." 1 Total 491,165 534,492 512,323 495,593 505,352 512,323 497,293 509,812' 496,022 503,541 2 Foreign countries 489,094 530,630 507,529 491,309 500,202 507,529 494,672 506,061' 493,105 501,698 116,928 119,025 113,737 103,631 107,189 113,737 108,431 107,661' 104,246 100,115 483 415 362 247 268 362 248 400 270 392 5 Belgium-Luxembourg 8,515 6,478 5,458 5,147 6,441 5,458 6,169 5,905 5,665 5,462 483 582 497 489 842 497 567 472 598 750 7 Finland 1,065 1,027 1,047 814 861 1,047 1,083 1,364' 1,157 1,173 13,243 16,146 14,531 13,750 13,386 14,531 15,202 14,384' 14,915 13,886 9 Germany 2,329 2,865 3,449 3,242 3,634 3,449 3,562 3,620 3,305 3,235 433 788 729 729 720 729 653 652' 667 688 11 Italy 7,936 6,662 6,066 5,070 5,171 6,066 6,141 5,707' 6,644 5,380 12 Netherlands 2,541 1,904 1,736 1,711 1,849 1,736 1,938 2,108' 2,143 2,230 455 609 777 732 661 777 701 670 765 679 14 Portugal 261 376 304 444 368 304 345 292' 384 293 1,823 1,930 2,758 2,373 2,584 2,758 2,864 2,526 3,334 3,180 1,977 1,773 2,073 2,577 2,251 2,073 2,145 2,336' 2,330 2,115 17 Switzerland 3,895 6,141 4,473 3,475 3,995 4,473 2,082 2,444' 3,165 3,238 18 Turkey 1,233 1,071 1,405 1,371 1,346 1,405 1,377 1,509 1,537 1,445 19 United Kingdom 65,706 65,527 65,312 58,267 59,919 65,312 60,548 60,397' 53,896 52,386 20 Yugoslavia 1,390 1,329 1,142 1,226 1,160 1,142 1,084 980 991 1,012 21 Other Western Europe2 1,152 1,302 587 667 619 587 705 851' 1,141 1,118 22 U.S.S.R 1,255 1,179 530 825 653 530 505 501 781 904 23 Other Eastern Europe3 754 921 499 474 459 499 512 545 558 548 24 Canada 18,889 15,451 16,091 16,185 14,295 16,091 16,952 19,364 17,062 17,524 214,264 230,438 230,043 217,247 228,593 230,043 229,577 237,532' 232,957 237,677 11,826 9,270 6,874 7,028 7,024 6,874 6,727 6,601 6,535 6,427 27 Bahamas 66,954 77,921 76,504 71,934 71,026 76,504 78,334 81,148' 73,338 76,315 28 Bermuda 483 1,315 4,006 3,662 4,291 4,006 1,771 3,602' 3,823 4,645 29 Brazil 25,735 23,749 17,994 18,626 18,393 17,994 17,953 17,943 18,328 16,079 30 British West Indies 55,888 68,749 87,061 78,046 86,333 87,061 93,924 97,544' 100,812 103,558 31 Chile 5,217 4,353 3,271 3,372 3,373 3,271 3,227 3,239 3,173 3,100 32 Colombia 2,944 2,784 2,585 2,544 2,531 2,585 2,555 2,528 2,441 2,332 33 Cuba 1 1 0 0 1 0 0 0 0 0 2,075 1,688 1,387 1,487 1,499 1,387 1,361 1,361 1,325 1,326 198 197 191 211 152 191 193 191 199 208 212 297 238 262 265 238 243 171 224 196 24,637 23,376 15,068 15,359 15,380 15,068 14,661 14,842' 15,077 15,590 38 Netherlands Antilles 1,306 1,921 7,998 3,310 7,386 7,998 2,199 1,604 1,278 1,501 2,521 1,740 1,471 1,463 1,449 1,471 1,534 1,502 1,500 1,475 40 Peru 1,013 771 663 667 730 663 659 694 700 673 910 929 786 794 787 786 767 626 588 620 10,733 9,652 2,611 7,102 6,585 2,611 2,118 2,254 2,168 2,209 43 Other Latin America and Caribbean 1,612 1,726 1,334 1,382 1,390 1,334 1,351 1,683 1,448 1,424 44 Asia 130,881 157,474 140,216 146,800 142,577 140,216 132,033 134,016' 131,273 138,932 China 762 634 620 639 689 620 565 497 723 664411 46 Taiwan 4,184 2,776 1,934 1,061 1,586 1,934 1,776 1,475 1,264 1,612 47 Hong Kong 10,143 11,128 10,644 8,478 8,506 10,644 8,250 8,792 9,729 10,886 48 India 560 621 655 524 540 655 624 590 539 560 674 651 933 896 923 933 926 1,081 1,136 1,029 50 Israel 1,136 813 774 688 758 774 934 842 952 1,120 90,149 111,300 92,023 106,369 100,083 92,023 91,035 89,896' 84,614 91,042 52 Korea 5,213 5,323 5,737 5,533 5,533 5,737 5,980 6,007 6,217 6,163 1,876 1,344 1,247 1,206 1,175 1,247 1,230 1,261 1,445 1,478 848 1,140 1,573 1,444 1,523 1,573 1,587 1,791 1,764 1,662 55 Middle East oil-exporting countries5 6,213 10,149 10,984 11,098 10,947 10,984 9,109 12,096' 12,386 12,286 56 Other Asia 9,122 11,594 13,092 8,865 10,314 13,092 10,016 9,688' 10,503 10,452 57 Africa 5,718 5,890 5,445 5,601 5,705 5,445 5,439 5,424 5,488 5,355 58 Egypt 507 502 380 411 383 380 384 314 304 304 511 559 513 534 519 513 514 511 538 538 60 South Africa 1,681 1,628 1,525 1,576 1,726 1,525 1,417 1,518 1,628 1,627 17 16 16 19 19 16 17 21 17 18 62 Oil-exporting countries" 1,523 1,648 1,486 1,510 1,492 1,486 1,467 1,478 1,452 1,372 63 Other 1,479 1,537 1,525 1,551 1,566 1,525 1,539 1,582 1,547 1,497 2,413 2,354 1,998 1,845 1,843 1,998 2,240 2,063 2,079 2,093 1,520 1,781 1,518 1,416 1,483 1,518 1,674 1,547 1,468 1,570 66 All other 894 573 479 429 360 479 566 517 611 524 67 Nonmonetary international and regional organizations7 2,071 3,862 4,793 4,284 5,151 4,793 22,,662211 33,,775511 22,,991177 11,,884444 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 • August 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 Oct. Nov. Dec. Jan. Feb/ Mar/ Apr." 1 Total 555555533333338888888,,,,,,,666666688888889999999 555555599999993333333,,,,,,,000000088888887777777 555555588888881111111,,,,,,,666666611111114444444 555555588888881111111,,,,,,,666666611111114444444 555555555555558888888,,,,,,,555555599999993333333 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 444444499999991111111,,,,,,,111111166666665555555 555555533333334444444,,,,,,,444444499999992222222 555555511111112222222,,,,,,,333333322222223333333 495,593 505,352 555555511111112222222,,,,,,,333333322222223333333 497,293 509,812 4444444%%%%%%%,,,,,,,000000022222222222222 503,541 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 66666662222222,,,,,,,666666655555558888888 66666660000000,,,,,,,555555511111111111111 44444441111111,,,,,,,999999922222227777777 46,714 46,903 44444441111111,,,,,,,999999922222227777777 38,870 43,638 44444444444444,,,,,,,333333300000005555555 41,128 44 OOwwnn ffoorreeiiggnn ooffffiicceess 222222255555557777777,,,,,,,444444433333336666666 222222299999996666666,,,,,,,000000011111111111111 333333300000003333333,,,,,,,111111122222227777777 281,529 291,011 333333300000003333333,,,,,,,111111122222227777777 298,964 306,122 2222222%%%%%%%,,,,,,,888888844444441111111 301,356 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111122222229999999,,,,,,,444444422222225555555 111111133333334444444,,,,,,,888888888888885555555 111111111111119999999,,,,,,,666666699999990000000 124,833 121,447 111111111111119999999,,,,,,,666666699999990000000 117,647 116,561 111111111111110000000,,,,,,,444444477777773333333 112,287 66 DDeeppoossiittss 66666665555555,,,,,,,888888899999998888888 77777778888888,,,,,,,111111188888885555555 66666667777777,,,,,,,666666677777773333333 72,132 68,441 66666667777777,,,,,,,666666677777773333333 69,200 69,017 66666663333333,,,,,,,333333322222224444444 64,869 77 OOtthheerr 66666663333333,,,,,,,555555522222227777777 55555556666666,,,,,,,777777700000000000000 55555552222222,,,,,,,000000011111117777777 52,701 53,006 55555552222222,,,,,,,000000011111117777777 48,446 47,544 44444447777777,,,,,,,111111144444449999999 47,419 88 AAllll ootthheerr ffoorreeiiggnneerrss 44444441111111,,,,,,,666666644444446666666 44444443333333,,,,,,,000000088888885555555 44444447777777,,,,,,,555555577777779999999 42,517 45,992 44444447777777,,,,,,,555555577777779999999 41,812 43,491 44444444444444,,,,,,,444444400000003333333 48,770 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss33...... 44444447777777,,,,,,,555555522222224444444 55555558888888,,,,,,,555555599999994444444 66666669999999,,,,,,,222222299999991111111 66666669999999,,,,,,,222222299999991111111 66666662222222,,,,,,,555555577777772222222 8888888,,,,,,,222222288888889999999 11111113333333,,,,,,,000000011111119999999 11111117777777,,,,,,,222222277777772222222 11111117777777,,,,,,,222222277777772222222 11111115555555,,,,,,,333333322222224444444 11 Negotiable and readily transferable 22222225555555,,,,,,,777777700000000000000 33333330000000,,,,,,,999999988888883333333 33333333333333,,,,,,,444444433333330000000 33333333333333,,,,,,,444444433333330000000 22222226666666,,,,,,,777777733333331111111 12 Outstanding collections and other 11111113333333,,,,,,,555555533333335555555 11111114444444,,,,,,,555555599999992222222 11111118888888,,,,,,,555555588888888888888 11111118888888,,,,,,,555555588888888888888 22222220000000,,,,,,,555555511111116666666 13 MEMO: Customer liability on 11111119999999,,,,,,,5555555%%%%%%% 11111112222222,,,,,,,888888899999999999999 11111113333333,,,,,,,555555588888883333333 11111113333333,,,,,,,555555588888883333333 11111111111111,,,,,,,777777766666666666666 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States 45,360 45,509 43,395 42,827 48,405 43,395 46,686' 42,184 41,550 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 1991 MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa 11998877 11998888 11998899 June Sept. Dec. Mar." 1 Total 235,130 233,184 238,123 208,443 213,898 208,026 198,825 By borrower 2 Maturity of 1 year or less2 163,997 172,634 178,346 159,164 166,687 168,085 157,347 3 Foreign public borrowers 25,889 26,562 23,916 20,778 21,770 20,717 21,110 4 All other foreigners 138,108 146,071 154,430 138,387 144,917 147,368 136,237 5 Maturity over 1 year 71,133 60,550 59,776 49,279 47,211 39,941 41,478 6 Foreign public borrowers 38,625 35,291 36,014 27,%1 26,213 20,928 22,811 7 All other foreigners 32,507 25,259 23,762 21,318 20,998 19,013 18,667 By area Maturity of 1 year or less 8 Europe 5599,,002277 5555,,990099 53,913 49,312 51,579 49,235 49,502 9 Canada 5,680 6,282 5,910 5,720 5,520 5,439 5,894 10 Latin America and Caribbean 56,535 57,991 53,003 44,332 43,941 49,314 42,189 11 35,919 46,224 57,755 51,126 56,366 55,785 53,826 V Africa . 2,833 3,337 3,225 2,991 2,951 3,040 3,016 13 All other3 4,003 2,891 4,541 5,683 6,330 55,,227733 22,,991199 Maturity of over 1 year 14 Europe 66,,66%% 4,666 4,121 4,201 4,426 3,871 4,368 15 Canada 2,661 1,922 2,353 2,819 3,033 3,291 3,387 16 Latin America and Caribbean 53,817 47,547 45,816 33,189 31,295 25,975 24,948 17 Asia 3,830 3,613 4,172 5,866 5,646 3,869 5,424 18 Africa . 1,747 2,301 2,630 2,739 2,544 2,374 2,417 19 All other 2,381 501 684 465 266 561 934 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 Banks12 Billions of dollars, end of period 1989 1990 1991 AArreeaa oorr ccoouunnttrryy 11998877 Mar. June Sept. Dec. Mar. June Sept. Dec. Mar. 1 Total 382.4 346.3 346.3 340.0 346.5 338.8 334.1 322.2 332.8 318.6 325.8' 159.7 152.7 145.5 145.1 146.4 152.9 146.9 140.0 145.2 133.7 129.7' 10.0 9.0 8.6 7.8 6.9 6.3 6.6 6.2 6.5 5.9 6.1 13.7 10.5 11.2 10.8 11.1 11.7 10.5 10.3 11.1 10.4 9.7 12.6 10.3 10.2 10.6 10.4 10.5 11.2 11.2 11.2 10.7 8.7 6 Italy 7.5 6.8 5.2 6.1 6.8 7.4 6.0 5.4 4.5 5.0 4.0' 4.1 2.7 2.8 2.8 2.4 3.1 3.1 2.7 3.8 2.9 3.3 2.1 1.8 2.3 1.8 2.0 2.0 2.1 2.3 2.3 2.1 2.0 5.6 5.4 5.1 5.4 6.1 7.1 6.3 6.4 5.7 4.7 3.6' 68.8 66.2 65.6 64.5 63.7 67.2 64.0 59.9 62.7 60.9 62.6' 5.5 5.0 4.0 5.1 5.9 5.4 4.8 5.2 5.1 5.9 6.7 29.8 34.9 30.5 30.2 31.0 32.2 32.4 30.4 32.4 25.1 22.9 26.4 21.0 21.1 21.2 21.0 20.7 23.1 22.6 23.2 22.8 23.1 1.9 11..55 1.4 1.7 1.5 1.5 1.5 1.5 1.6 1.4 1.4 1.7 11..11 1.1 1.4 1.1 1.1 1.1 1.1 1.1 1.1 .9 1.2 1.1 1.0 1.0 1.1 1.0 1.1 .9 .8 .7 1.0 2.0 1.8 2.1 2.3 2.4 2.5 2.6 2.7 2.8 2.7 2.5 2.2 1.8 1.6 1.8 1.4 1.4 1.7 1.4 1.5 1.6 1.5 .6 .4 .4 .6 .4 .4 .4 .8 .6 .6 .6 8.0 6.2 6.6 6.2 6.9 7.1 8.3 7.9 8.5 8.4 9.0 2.0 1.5 1.3 1.1 1.2 1.2 1.3 1.4 1.6 1.7 1.7 1.6 1.3 1.1 1.1 1.0 .7 1.0 1.1 .7 .9 .8 2.9 2.4 2.2 2.1 2.1 2.0 2.0 1.9 1.9 1.8 1.8 2.4 1.8 2.4 1.9 2.1 1.6 2.1 1.9 2.0 1.9 1.9 25 OPEC countries3 17.4 16.6 16.2 16.1 16.2 17.1 15.5 15.3 14.4 13.1 17.2 1.9 1.7 1.6 1.5 1.5 1.3 1.2 1.1 1.1 1.0 .9 8.1 7.9 7.9 7.5 7.4 7.0 6.1 6.0 6.0 5.0 5.1 1.9 1.7 1.7 1.9 2.0 2.0 2.1 2.0 2.3 2.7 2.8 3.6 3.4 3.3 3.4 3.5 5.0 4.3 4.4 3.3 2.8 6.7 1.9 1.9 1.7 1.6 1.9 1.7 1.8 1.8 1.7 1.7 1.7 9977..88 8855..33 8855..99 83.4 81.2 77.5 68.8 66.6 67.2 65.5 65.9' Latin America 9.5 9.0 8.5 7.9 7.6 6.3 5.5 5.1 4.9 4.9 4.7' 33 Brazil 24.7 22.4 22.8 22.1 20.9 19.0 17.5 16.7 15.4 14.4 14.0 34 Chile 6.9 5.6 5.7 5.2 4.9 4.6 4.3 3.7 3.6 3.5 3.6 2.0 2.1 1.9 1.7 1.6 1.8 1.8 1.7 1.8 1.8 1.7 23.5 18.8 18.3 17.7 17.2 17.7 12.7 12.6 13.1 13.2 13.1 37 Peru 1.1 .8 .7 .6 .6 .6 .5 .5 .5 .5 .5 2.8 2.6 2.7 2.6 2.9 2.8 2.7 2.3 2.4 2.3 2.3 Asia China 39 Mainland .3 .3 .5 .3 .3 .3 .3 .2 .2 .2 .4' 8.2 3.7 4.9 5.2 5.0 4.5 3.8 3.6 4.0 3.5 3.6' 1.9 2.1 2.6 2.4 2.7 3.1 3.5 3.6 3.6 3.3 3.5 1.0 1.2 .9 .8 .7 .7 .6 .7 .6 .5 .5 43 Korea (South) 5.0 6.1 6.1 6.6 6.5 5.9 5.3 5.6 6.2 6.2 6.7 1.5 1.6 1.7 1.6 1.7 1.7 1.8 1.8 1.8 1.9 2.0 5.2 4.5 4.4 4.4 4.0 4.1 3.7 3.9 3.9 3.8 3.7 .7 1.1 11..00 1.0 1.3 1.3 1.1 1.3 1.5 1.5 1.6' .7 .9 ..88 .8 1.0 1.0 1.2 1.1 1.6 1.7 2.1 Africa .6 .4 .5 .6 .5 .4 .4 .5 .4 .4 .4 .9 .9 .9 .9 .8 .9 .9 .9 .9 .8 .8 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 51 Other Africa4 1.3 1.1 1.1 1.1 1.0 1.0 .9 .8 .8 1.0 .8 3.2 3.6 3.5 3.4 3.5 3.5 3.4 2.9 2.7 2.3 2.0 53 U.S.S.R .3 .7 .7 .6 .8 .7 .8 .4 .4 .2 .3 11..88 1.8 1.7 1.7 1.7 1.6 1.4 1.4 1.3 1.2 1.0 55 Other 11..11 1.1 1.1 1.1 1.1 1.3 1.2 1.1 1.1 .9 .7 54.5 44.2 48.7 43.2 49.2 36.6 42.9 40.1 41.8 40.5 49.C 17.3 11.0 15.8 11.0 11.4 5.5 9.2 8.5 8.9 2.8 9.1' .6 .9 1.1 .7 1.3 1.7 .9 2.2 4.0 4.3 4.1' 13.5 12.9 12.2 10.8 15.3 9.0 10.9 8.5 9.0 10.0 i2.r 1.2 1.0 .9 1.0 1.1 2.3 2.6 2.3 2.2 7.9 1.1 33..77 2.5 2.2 1.9 1.5 1.4 1.3 1.4 1.5 1.4 1.6 ..11 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 11.2 9.6 9.6 10.4 10.7 9.7 9.8 10.0 8.7 7.4 11.3 7.0 6.1 6.8 7.3 7.8 7.0 8.0 7.0 7.5 6.4 8.7 65 Others® .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 2233..22 2222..66 25.0 27.4 28.7 3300..33 33.3 34.5 38.1 40.6 38.5 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 • August 1991 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1989 1990 Type, and area or country 11998877 11998888 11998899 Sept. Dec. Mar. June Sept. Dec. 1 Total 28,302 32,952 38,653 36,544 38,653 38,832 39,642 44,557 41,632' 2 Payable in dollars 22,785 27,335 33,808 31,683 33,808 34,463 35,090 39,431 37,334r 3 Payable in foreign currencies 5,517 5,617 4,846 4,861 4,846 4,369 4,552 5,126 4,298r By type 4 Financial liabilities 12,424 14,507 18,365 17,141 18,365 17,928 19,495 20,484 17,358' 5 Payable in dollars 8,643 10,608 14,462 13,289 14,462 14,635 16,055 16,644 14,206' 6 Payable in foreign currencies 3,781 3,900 3,903 3,852 3,903 3,293 3,441 3,840 3,152' 7 Commercial liabilities 15,878 18,445 20,288 19,403 20,288 20,904 20,147 24,073 24,274' 8 Trade payables 7,305 6,505 7,588 6,906 7,588 7,434 6,881 9,956 10,031' 9 Advance receipts and other liabilities .. 8,573 11,940 12,700 12,497 12,700 13,470 13,266 14,118 14,243 10 Payable in dollars 14,142 16,727 19,345 18,394 19,345 19,828 19,036 22,787 23,128' 11 Payable in foreign currencies 1,737 1,717 943 1,009 943 1,076 1,111 1,286 1,147' By area or country Financial liabilities 12 Europe 8,320 9,962 11,609 11,213 11,609 11,050 11,883 11,345 9,541' 13 Belgium-Luxembourg 213 289 340 308 340 318 332 350 344 14 France 382 359 258 242 258 277 196 503 638' 15 Germany 551 699 521 592 521 482 601 660 630' 16 Netherlands 866 880 947 855 947 901 934 948 973' 17 Switzerland 558 1,033 541 799 541 529 552 633 576 18 United Kingdom 5,557 6,533 8,741 8,207 8,741 8,256 8,741 7,539 5,844' 19 Canada 360 388 573 575 573 476 345 357 215' 20 Latin America and Caribbean 1,189 839 1,268 1,367 1,268 1,814 2,573 3,394 3,239 21 Bahamas 318 184 157 186 157 272 249 368 344 22 Bermuda 0 0 17 7 17 0 0 0 0 23 Brazil 25 0 0 0 0 0 0 0 0 24 British West Indies 778 645 635 743 635 1,061 1,782 2,409 2,274 25 Mexico 13 1 6 4 6 5 4 4 5 26 Venezuela 0 0 0 0 0 0 0 0 4 27 Asia 2,451 3,312 4,814 3,886 4,814 4,483 4,636 4,906 3,952' 28 Japan 2,042 2,563 3,963 3,130 3,963 3,445 3,434 3,771 2,773' 29 Middle East oil-exporting countries . 8 3 2 2 2 3 5 4 5 30 Africa 4 2 2 4 2 3 3 2 2 1 0 0 2 0 0 1 0 0 31 Oil-exporting countries 32 All other4 100 4 100 97 100 102 55 479 409 Commercial liabilities 5,516 7,319 8,918 8,335 8,918 9,165 8,343 9,733 10,280' 33 Europe 132 158 179 137 179 233 297 248 285 34 Belgium-Luxembourg 426 455 871 806 871 882 929 1,191 1,251 35 France 909 1,699 1,365 1,185 1,365 1,145 962 1,023 1,235 36 Germany 423 587 699 548 699 688 607 701 838 37 Netherlands 559 417 621 531 621 583 607 708 762' 38 Switzerland 1,599 2,079 2,648 2,717 2,648 2,954 2,466 2,804 2,821' 39 United Kingdom 40 Canada 1,301 1,217 1,124 1,189 1,124 1,150 1,179 1,266 1,290 41 Latin America and Caribbean 864 1,090 1,187 1,086 1,187 1,304 1,278 1,554 1,594 42 Bahamas 18 49 41 27 41 37 22 18 12 43 Bermuda 168 286 308 305 308 516 412 371 538 44 Brazil 46 95 100 113 100 116 106 126 137 45 British West Indies 19 34 27 30 27 18 29 42 30 46 Mexico 189 217 304 220 304 241 285 506 420 47 Venezuela 162 114 154 107 154 85 119 120 121 48 Asia 6,565 6,915 7,188 7,088 7,188 7,015 7,073 8,797 8,925' 49 Japan 2,578 3,094 2,915 2,676 2,915 2,745 3,182 3,189 3,606 50 Middle East oil-exporting countries ' 1,964 1,385 1,401 1,442 1,401 1,393 1,125 2,321 1,701 51 Africa 574 576 844 648 844 753 885 1,315 789 52 Oil-exporting countries 135 202 307 255 307 263 277 593 422 53 All other4 1,057 1,328 1,027 1,057 1,027 1,517 1,390 1,408 1,397 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 11998877 11998888 11998899 Sept. Dec. Mar. June Sept. Dec. 1 Total 30,964 34,035 31,437 32,088 31,437 29,815 31,577 30,903 33,503r 2 Payable in dollars 28,502 31,654 29,106 29,806 29,106 27,687 29,265 28,504 31,057r 3 Payable in foreign currencies 2,462 2,381 2,330 2,282 2,330 2,128 2,312 2,399 2,445 By type 4 Financial claims 20,363 21,869 17,689 19,135 17,689 16,558 18,035 16,572 18,KW 5 Deposits 14,894 15,643 10,400 12,154 10,400 10,451 9,869 10,303 11,473' 6 Payable in dollars 13,765 14,544 9,473 11,278 9,473 9,583 8,799 9,110 10,504' 7 Payable in foreign currencies 1,128 1,099 927 877 927 868 1,070 1,193 969 8 Other financial claims 5,470 6,226 7,289 6,981 7,289 6,108 8,166 6,269 6,636' 9 Payable in dollars 4,656 5,450 6,535 6,073 6,535 5,420 7,433 5,616 5,769' 10 Payable in foreign currencies 814 777 754 908 754 688 733 652 866 11 Commercial claims 10,600 12,166 13,748 12,953 13,748 13,257 13,542 14,331 15,394' 12 Trade receivables 9,535 11,091 12,140 11,472 12,140 11,635 11,821 12,518 13,454' 13 Advance payments and other claims . 1,065 1,075 1,608 1,481 1,608 1,622 1,721 1,813 1,940 14 Payable in dollars 10,081 11,660 13,099 12,455 13,099 12,684 13,034 13,778 14,784' 15 Payable in foreign currencies 519 505 650 498 650 573 508 554 610 By area or country Financial claims 16 Europe 9,531 10,279 7,040 7,528 7,040 6,964 9,604 7,950 8,005' 17 Belgium-Luxembourg 7 18 28 166 28 22 126 27 76 18 France 332 203 153 173 153 198 141 143 366 2 2 2 1 2 0 1 9 U N S G w n e e t r i i h t t m e z e d e a r r n l l K a y a n i n d n d s g dom 8,4 3 1 6 6 5 0 7 5 0 2 9,0 3 2 1 3 4 1 2 9 8 8 0 6,0 3 1 3 9 0 9 5 5 3 2 6,4 2 1 1 1 9 1 2 9 2 1 0 6,0 3 1 3 9 0 9 5 5 3 2 5,5 5 3 1 8 0 1 2 7 5 5 2 8,5 3 1 5 3 9 3 6 2 3 7 6,9 3 1 7 9 1 7 1 7 5 6 6,2 3 3 3 7 3 7 2 1 3 6 5 ' ' 23 Canada 2,844 2,325 1,892 2,359 1,892 1,758 2,035 1,994 2,887 2 2 2 2 2 2 3 4 5 6 7 8 9 0 La B B B B M V ti r r a e n e e i a h r n t x z m i A a e i s i m c l z h u m o u d a e W e a s r l i a e c s a t a I n n d d i C es a ribbean 4 7 1 , , , 4 0 9 1 3 1 6 9 7 1 3 2 3 4 7 2 9 5 8 1 , , , 7 1 8 1 6 6 4 4 2 5 1 3 0 7 6 1 1 9 5 7 1 , , , 4 5 2 5 3 9 9 2 1 2 1 4 0 4 7 6 0 6 8 1 , , , 1 3 6 1 2 1 3 7 9 3 0 5 5 3 0 9 6 5 7 5 1 , , , 4 5 2 5 3 9 9 2 2 1 1 4 0 4 0 6 7 4 6 1 , , , 8 9 6 1 2 8 6 2 7 5 4 4 2 4 1 9 2 4 5 , , 0 4 9 1 0 7 9 8 2 5 3 9 2 4 3 0 3 4 5 , , 2 6 9 1 1 6 7 7 2 5 5 6 7 4 0 3 8 4 5 1 , , , 0 7 2 1 3 5 6 6 2 6 1 1 8 1 3 5 0 3 3 1 2 As J i a a pan 8 60 7 5 9 5 8 7 4 4 4 4 8 3 3 9 1 4 8 6 2 0 6 4 8 3 3 9 1 4 7 1 6 6 3 4 8 7 1 3 5 4 7 5 3 0 3 1, 8 2 7 1 5 3 ' ' 33 Middle East oil-exporting countries^ 8 5 8 7 8 7 6 9 8 34 Africa 65 106 140 75 140 67 62 49 37 7 10 12 8 12 11 8 7 0 35 Oil-exporting countries 33 155 195 31 195 23 41 179 215 36 All other4 Commercial claims 4,180 5,181 6,168 5,429 6,168 6,026 6,042 6,428 7,109' 37 Europe 178 189 241 220 241 219 208 189 211' 38 Belgium-Luxembourg 650 672 956 829 956 958 908 1,140 1,298' 39 France 562 669 687 686 687 699 662 638 806' 40 Germany 133 212 478 396 478 450 475 491 549 41 Netherlands 185 344 305 222 305 270 235 300 302 42 Switzerland 1,073 1,324 1,572 1,398 1,572 1,690 1,586 1,679 1,80c 43 United Kingdom 44 Canada 936 983 1,058 1,278 1,058 1,121 1,125 1,135 1,046' 4 4 4 4 4 5 5 5 6 7 8 9 0 1 La B B B M B V ti a r n e r e e a i h r n t x z m A i a e i i s m l c z h m u o u d a e W e a s r l i a e c s a t a I n n d d i C es a ribbean 1,9 2 3 2 1 3 2 8 6 2 7 1 0 6 3 8 6 0 9 2,2 4 2 2 2 4 6 3 3 2 9 2 1 1 0 6 7 9 2 2,1 3 2 5 1 7 5 2 9 0 3 4 7 7 3 2 9 6 7 2,1 2 5 2 1 4 7 0 3 3 8 1 7 1 9 9 3 9 0 2,1 5 3 2 1 7 0 5 2 9 3 4 7 9 7 3 2 6 7 2,0 2 2 5 1 6 4 2 3 2 3 8 1 3 2 1 5 8 8 2,2 2 5 2 2 0 8 4 8 2 3 1 4 4 6 1 3 4 7 2,3 3 6 2 2 9 4 2 4 5 2 3 2 0 3 9 2 5 5 2, 6 3 2 3 1 4 4 1 3 9 2 1 9 9 7 5 1 1 4 ' ' ' 52 Asia 2,915 2,993 3,538 3,316 3,538 3,257 3,419 3,575 4,038' 5 5 3 4 J M ap id a d n l e East oil-exporting countries 1, 4 1 5 5 0 8 9 4 4 5 6 3 1, 5 18 1 4 5 1, 4 1 1 7 0 6 1, 5 1 1 8 5 4 1, 4 0 3 6 2 1 1, 4 0 1 8 4 0 1, 4 2 0 1 3 1 1, 4 4 5 3 9 C 5 5 5 6 Af O ri i c l a - exporting countries , 4 1 0 4 1 4 4 1 3 2 5 2 4 1 1 0 8 7 39 8 9 7 4 1 1 0 8 7 42 8 5 9 3 9 9 8 0 3 7 7 1 2 48 6 8 7 57 All other4 238 333 389 383 389 367 361 429 396' 1. For a description of the changes in the Internationa] 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 • August 1991 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1991 1990 1991 Transactions, and area or country 1989 1990 J A an pr . . - Oct. Nov. Dec. Jan. Feb. Mar. Apr." U.S. corporate securities STOCKS 1 Foreign purchases 214,061 173,227 74,260 11,633 12,551 13,316 10,241 21,691r 21,763' 20,565 2 Foreign sales 204,114 188,373 68,477 15,434 13,368 14,573 11,048 20,615' 19,393 17,421 3 Net purchases, or sales (—) 9,946 -15,146 5,783 -3,801 -817 -1,257 -807 1,076' 2,370' 3,143 4 Foreign countries 10,180 -15,218 5,647 -3,759 -812 -1,267 -808 L,020r 2,369' 3,066 5 Europe 481 -8,498 723 -1,415 -582 -487 -610 -1,245' 846' 1,732 6 France -708 -1,234 57 -159 -80 -49 -24 27 100 -45 7 Germany -830 -368 -305 -87 -14 -144 -114 -204 0 13 8 Netherlands 79 -398 -98 -61 21 -46 -142 -104 119 29 9 Switzerland -3,277 -2,867 -257 -213 -169 -263 -222 -943 357 552 10 United Kingdom 3,691 -2,992 836 -687 -282 149 -93 27' 121' 781 11 Canada -881 892 891 155 216 279 24 469' 284 113 12 Latin America and Caribbean 3,042 -1,337 1,305 -357 292 -280 233 937 3 131 13 Middle East' 3,531 -2,435 184 -558 -430 -251 -279 675 -30 -182 14 Other Asia 3,577 -3,477 2,602 -1,517 -420 -406 -196 432 1,223 1,144 15 Japan 3,330 -2,891 437 -1,135 -194 -382 -271 -366 -2 1,076 16 Africa 131 -63 79 -31 -5 -14 33 31 16 0 17 Other countries 299 -298 -137 -35 117 -108 -13 -279 28 127 18 Nonmonetary international and regional organizations -234 71 136 -42 -5 9 2 56 1 78 BONDS2 19 Foreign purchases 120,550 118,464 42,462 8,842 11,205 9,943 8,859 8,468 14,807' 10,328 20 Foreign sales 87,376 101,571 37,594 7,673 7,754 7,890 8,575 9,269 10,613' 9,138 21 Net purchases, or sales (—) 33,174 16,892 4,868 1,169 3,452 2,052 284 -801 4,194' 1,190 22 Foreign countries 32,821 17,348 4,770 1,405 3,456 2,055 103 -723 4,093' 1,297 23 Europe 19,064 10,231 3,244 428 2,046 1,088 -130 -1,065 3,271' 1,168 24 France 372 373 547 -74 24 39 31 68 392' 56 25 Germany -238 -377 379 -29 -59 -41 -54 78 238' 117 26 Netherlands 850 172 152 35 52 110 47 1 20 84 27 Switzerland -511 392 441 -193 148 45 360 -217 318' -21 28 United Kingdom 18,123 10,429 1,545 371 1,727 1,406 -102 -885 1,633' 900 29 Canada 1,116 1,906 808 127 93 -85 71 106 385 246 30 Latin America and Caribbean 3,686 4,279 962 282 343 495 -17 439 351 188 31 Middle East' -182 76 29 -10 -35 74 69 -2 -13 -25 32 Other Asia 9,025 1,104 -287 628 1,033 486 131 -209 81' -291 33 Japan 6,292 747 26 386 812 399 308 -214 162' -230 34 Africa 56 % 10 2 6 -9 -15 10 7 8 35 Other countries 57 -344 5 -53 -30 7 -5 -2 10 3 36 Nonmonetary international and regional organizations 353 -455 98 -237 -4 -2 181 -78 102 -107 Foreign securities 37 Stocks, net purchases, or sales (-)3 -13,120 -8,729 -9,408 -319 1,068 -1,831 -404 -3,177 -3,305 -2,522 38 Foreign purchases 109,792 122,532 35,821 9,282 10,060 7,244 6,230 10,561 11,095 7,935 39 Foreign sales3 122,912 131,261 45,229 9,601 8,993 9,075 6,634 13,738 14,400 10,457 40 Bonds, net purchases, or sales (-) -5,943 -22,294 -3,677 -2,791 165 -4,771 -173 -1,945 -991 -568 41 Foreign purchases 234,320 314,228 127,817 35,235 32,837 33,372 27,138 37,202 40,161 23,316 42 Foreign sales 240,263 336,522 131,493 38,026 32,671 38,143 27,312 39,146 41,152 23,883 43 Net purchases, or sales (-), of stocks and bonds -19,063 -31,023 -13,084 -3,110 1,233 -6,602 -577 -5,122 -4,296 -3,090 44 Foreign countries -19,101 -28,349 -11,761 -2,312 1,207 -5,860 -538 -5,166 -2,845 -3,213 45 Europe -17,721 -7,752 -2,735 -911 2,017 -919 342 -3,118 -328' 369 46 Canada -4,180 -7,374 -3,663 -893 -1,740 -659 -573 -797 3 -2,295 47 Latin America and Caribbean 426 -8,960 464 262 283 -2,811 351 314 114 -316 48 Asia 2,532 -3,885 -6,103 -687 706 -1,571 -792 -1,811 -2,502 -998 49 Africa 93 -137 85 4 -69 28 22 30 2 31 50 Other countries -251 -240 191 -87 11 73 112 216 -134' -4 51 Nonmonetary international and regional organizations 38 -2,673 -1,323 -798 25 -742 -39 44 -1,451 123 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 1991 1990 1991 Country or area 1989 1990 Jan.- Oct. Nov. Dec. Jan. Feb. Mar/ Apr." Apr. Transactions, net purchases or sales (-) during period1 1 Estimated total 54,203 19,930 3,974 -1,066 5,848 6,531 2,978 13,230r -15,264 3.030 2 Foreign countries2 52,301 20,245 4,585 -1,051 5,538 6,541 4,610 11,770r -14,446 2,651 3 Europe2 36,286 19,096 401 245 2,070 4,461 3,356 2,933 -4,535 -1,353 6 4 5 7 G N B Sw e e e l r t e g h m d i e u e a r n m n la y - n 2 L d u s xembourg -1 7 1 , , 1 , 9 0 6 4 0 4 9 1 4 8 3 5 1 1 , , , 7 0 1 - 3 2 1 4 2 2 2 - -1 6 - , , 6 2 1 5 8 7 2 6 4 2 3 1 -4 5 1 5 8 7 6 4 0 2 3 1 -2 , - 6 2 6 4 7 7 8 9 7 6 -1 5 6 7 0 7 2 2 5 1 5 1 - - 5 6 3 2 4 6 0 6 1 2 0 0 -1, - 6 1 8 9 4 4 5 1 3 9 -3 - - , 6 2 3 1 0 4 4 1 7 4 0 5 - - - 2 5 4 9 4 1 3 2 9 0 7 1 1 8 9 1 0 E U O Sw a n th s i i t t e t e e z r d r e n W r l K a E e n i s u n d t g r e 2 o d r p n o e m E urope 20 6 1 , , , - 1 5 0 2 9 0 9 1 8 8 8 - 1 1 2 ,3 ,3 1 0 8 1 1 9 8 2 3 4 3 , , 1 5 1 9 5 5 1 9 4 6 1 -1 1 ,7 , 6 0 4 1 0 0 0 9 4 -1 2 , , 6 0 - - 2 6 6 5 5 9 2,2 2 2 0 0 4 4 0 0 4 2,8 9 1 2 9 7 6 9 5 0 4, - 4 1 5 3 3 4 2 0 9 -1,4 4 5 4 7 1 2 0 0 3 -6 2 2 2 6 1 2 5 5 4 12 Canada 698 -4,558 -218 -637 -468 155 -795 -171 182 566 1 1 3 4 La V tin e n A ez m u e e r l i a c a and Caribbean 4 3 6 1 4 1 15, - 5 5 8 0 7 4 - , 1 0 4 1 6 4 4,7 - 3 2 1 4,31 4 6 9 1,610 1 -5 - , 1 1 5 5 3 0 3,1 - 1 1 0 43 6 0 5,623 2 15 Other Latin America and Caribbean -322 4,880 5,415 646 978 1,208 -592 1,901 1,074 3.031 16 Netherlands Antilles 475 10,757 -1,256 4,086 3,290 401 -4,405 1,210 -650 2,590 17 Asia 13,297 -11,047 374 -5,192 -930 -72 7,019 5,517' -9,984 -2,179 1 1 8 9 Af J r a ic p a a n 1,6 1 8 1 1 6 -14,8 3 8 1 0 3 -6,2 2 3 0 6 4 -4,05 8 9 3 -1,153 8 -2,4 - 0 3 7 2,24 7 4 8 1,9 1 1 1 5 0 -7,016 0 -3,37 1 9 6 20 All other 1,439 855 -190 -281 543 389 102 269 -540 -22 21 Nonmonetary international and regional organizations 1,902 -316 -612 -15 310 -10 -1,633 1,461 -819 379 2 2 2 3 L In a t t e i r n n a A ti m o e n r a i l c a regional 1, 2 47 3 3 1 -1 - 9 2 1 -1,1 1 4 8 1 4 -1 -5 0 9 0 15 0 9 -12 9 5 2 -1 - , 2 5 0 7 2 1 1,1 1 0 5 4 6 -845 5 2 1 2 7 5 1 Memo 24 Foreign countries2 52,301 20,245 4,585 -1,051 5,538 6,541 4,610 11,77c -14,446 2,651 25 Official institutions 26,840 23,916 -873 1,375 4,771 7,880 2,541 7,317 -11,691 959 26 Other foreign2 25,461 -3,671 5,458 -2,426 767 -1,339 2,069 4,453r -2,755 1,692 Oil-exporting countries 2 2 7 8 A M f i r d i d c l a e 4 East3 8,1 - 4 1 8 -387 0 -83 2 0 0 -1,24 0 7 -878 0 1,01 0 4 52 0 3 64 21 4 -1,4 - 8 6 5 -513 5 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 • August 1991 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per year Rate on June 30, 1991 Rate on June 30, 1991 Rate on June 30, 1991 Country Country Country Month Month Month Percent effective Percent effective Percent effective Austria.. 6.5 Oct. 1989 France 9.0 Mar. 1990 Norway 10.50 July 1990 Belgium . 7.5 June 1991 Germany, Fed. Rep. of, 6.50 Feb. 1991 Switzerland 6.0 Oct. 1989 Canada.. 8.90 June 1991 Italy 11.5 May 1991 United Kingdom' Denmark 9.50 Jan. 1991 Japan 6.0 Aug. 1990 Netherlands 7.75 Feb. 1991 1. As of the end of February 1981, the rate is that at which the Bank of France or makes advances against eligible commercial paper and/or government comdiscounts Treasury bills for 7 to 10 days. mercial banks or brokers. For countries with more than one rate applicable to 2. Minimum lending rate suspended as of Aug. 20, 1981. such discounts or advances, the rate shown is the one at which it is understood the NOTE. Rates shown are mainly those at which the central bank either discounts central bank transacts the largest proportion of its credit operations. 3.27 FOREIGN SHORT-TERM INTEREST RATES Percent per year, averages of daily figures 1990 1991 CCoouunnttrryy,, oorr ttyyppee 11998888 11998899 11999900 Dec. Jan. Feb. Mar. Apr. May June 1 7.85 9.16 8.16 7.87 7.23 6.60 6.44 6.11 5.94 6.08 7 10.28 13.87 14.73 13.75 13.91 13.20 12.33 11.90 11.48 11.21 3 9.63 12.20 13.00 11.95 11.13 10.37 9.97 9.67 9.12 8.83 4 4.28 7.04 8.41 9.17 9.25 8.96 8.99 9.08 8.98 8.95 5 2.94 6.83 8.71 8.65 8.44 7.81 8.17 8.26 8.10 7.89 6 4.72 7.28 8.57 9.27 9.31 9.01 9.04 9.11 9.05 9.08 7 7.80 9.27 10.20 10.14 10.14 9.64 9.34 9.21 9.13 9.59 8 Italy 11.04 12.44 12.11 13.45 13.13 13.31 12.52 11.90 11.46 11.48 9 6.69 8.65 9.70 9.81 9.91 9.51 9.28 9.20 9.00 9.08 1100 4.43 5.39 7.75 8.27 8.18 8.01 8.09 7.96 7.82 7.79 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 RATES1 Currency units per dollar 1991 CCoouunnttrryy//ccuurrrreennccyy 11998888 11998899 11999900 Jan. Feb. Mar. Apr. May June 78.409 79.186 78.069 77.930 78.351 77.107 77.947 77.427 75.982 12.357 13.236 11.331 10.616 10.416 11.341 11.977 12.104 12.538 36.785 39.409 33.424 31.088 30.475 33.206 35.017 35.363 36.689 1.2306 1.1842 1.1668 1.1560 1.1549 1.1572 1.1535 1.1499 1.1439 5 China, P.R./yuan 3.7314 3.7673 4.7921 5.2352 5.2352 5.2352 5.2767 5.3257 5.3667 6.7412 7.3210 6.1899 5.8115 5.6953 6.1886 6.5163 6.5793 6.8634 4.1933 4.2963 3.8300 3.6431 3.5941 3.8512 3.9925 4.0431 4.2189 5.9595 6.3802 5.4467 5.1253 5.0398 5.4862 5.7540 5.8282 6.0483 1.7570 1.8808 1.6166 1.5091 1.4805 1.6122 1.7027 1.7199 1.7828 142.00 162.60 158.59 159.70 158.82 174.16 184.76 188.14 195.03 7.8072 7.8008 7.7899 7.7950 7.7943 7.7911 7.7939 7.7798 7.7341 13.900 16.213 17.492 18.339 18.860 19.243 19.906 20.519 21.062 152.49 141.80 165.76 168.68 179.81 157.43 157.12 155.68 142.66 14 Italy/lira 1,302.39 1,372.28 1,198.27 1,134.38 1,111.19 1,201.96 1,261.57 1,275.67 1,325.09 128.17 138.07 145.00 133.70 130.54 137.39 137.11 138.22 139.75 2.6190 2.7079 2.7057 2.7140 2.6969 2.7418 2.7498 2.7573 2.7810 1.9778 2.1219 1.8215 1.7015 1.6689 1.8174 1.9186 1.9379 2.0085 18 New Zealand/dollar2 65.560 59.561 59.619 59.476 60.120 59.389 58.909 58.647 57.645 6.5243 6.9131 6.2541 5.8993 5.7919 6.2899 6.6198 6.6953 6.9542 144.27 157.53 142.70 134.43 130.45 140.97 148.00 149.59 156.37 2.0133 1.9511 1.8134 1.7455 1.7180 1.7589 1.7688 1.7688 1.7782 2.2770 2.6214 2.5885 2.5643 2.5412 2.6636 2.7325 2.7975 2.8625 734.52 674.29 710.64 720.83 723.97 727.73 728.36 727.99 727.97 116.53 118.44 101.96 95.08 92.61 100.21 105.08 106.45 111.18 31.820 35.947 40.078 40.300 40.598 40.750 40.836 40.988 41.211 6.1370 6.4559 5.9231 5.6345 5.5516 5.9081 6.1145 6.1578 6.4235 1.4643 1.6369 1.3901 1.2714 1.2685 1.3918 1.4399 1.4574 1.5297 28 Taiwan/dollar 28.636 26.407 26.918 27.197 27.109 27.311 27.333 27.282 27.166 29 Thailand/baht 25.312 25.725 25.609 25.244 25.141 25.447 25.578 25.645 25.766 178.13 163.82 178.41 193.46 196.41 182.14 174.97 172.38 164.97 MEMO 92.72 98.60 89.09 83.51 82.12 88.12 91.41 92.29 95.18 1. Averages of certified noon buying rates in New York for cable transfers. currencies of 10 industrial countries. The weight for each of the 10 countries is the Data in this table also appear in the Board's G.5 (405) release. For address, see 1972-76 average world trade of that country divided by the average world trade of inside front cover. all 10 countries combined. Series revised as of August 1978 (see Federal Reserve 2. Value in U.S. cents. Bulletin, vol. 64, August 1978, p. 700). 3. Index of weighted-average exchange value of U.S. dollar against the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A71 Guide to Tabular Presentation, Statistical Releases, and Special Tables GUIDE TO TABULAR PRESENTATION Symbols and Abbreviations c Corrected 0 Calculated to be zero e Estimated n.a. . Not available p Preliminary n.e.c. Not elsewhere classified r Revised (Notation appears on column heading when about IPCs Individuals, partnerships, and corporations half of the figures in that column are changed.) REITs Real estate investment trusts * Amounts insignificant in terms of the last decimal place RPs Repurchase agreements shown in the table (for example, less than 500,000 when SMSAs Standard metropolitan statistical areas the smallest unit given is millions) Cell not applicable General Information Minus signs are used to indicate (1) a decrease, (2) a negative tions of the Treasury. "State and local government" also infigure, or (3) an outflow. cludes municipalities, special districts, and other political "U.S. government securities" may include guaranteed issues subdivisions. of U.S. government agencies (the flow of funds figures also In some of the tables, details do not add to totals because of include not fully guaranteed issues) as well as direct obliga- rounding. STATISTICAL RELEASES—list Published Semiannually, with Latest BULLETIN Reference Issue Page Anticipated schedule of release dates for periodic releases June 1991 A82 SPECIAL TABLES-Published Irregularly, with Latest BULLETIN Reference Title and Date Issue Page Assets and liabilities of commercial banks June 30, 1990 February 1991 A72 September 30,1990 March 1991 A72 December 31,1990 May 1991 A72 March 31,1991 August 1991 A72 Terms of lending at commercial banks May 1990 December 1990 A72 August 1990 December 1990 A77 November 1990 April 1991 A73 February 1991 August 1991 A78 Assets and liabilities of U.S. branches and agencies of foreign banks March 31,1990 September 1990 A78 June 30,1990 December 1990 A82 September 30,1990 February 1991 A78 December 31,1990 June 1991 A72 Pro forma balance sheet and income statements for priced service operations September 30,1989 March 1990 A88 March 31,1990 September 1990 A82 June 30,1990 October 1990 A72 September 30,1990 August 1991 A82 Special tables follow. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Special Tables • August 1991 4.20 DOMESTIC AND FOREIGN OFFICES, Insured Commercial Bank Assets and Liabilities1-2 Consolidated Report of Condition, March 31, 1991 Millions of dollars Banks with domestic Banks with foreign offices offices only Item Total Total Foreign Domestic Over 100 Under 100 1 Total assets" 3,336,907 1,866,718 425,416 1,518,631 1,100,422 364,924 2 Cash and balances due from depository institutions 259,206 177,042 87,071 89,971 59,254 22,623 3 Cash items in process of collection, unposted debits, and currency and coin n.a. 65,682 1,696 63,986 28,457 n.a. 4 Cash items in process of collection and unposted debits n.a. n.a. n.a. 50,707 19,423 n.a. 5 Currency and coin n.a. n.a. n.a. 13,279 9,034 n.a. 6 Balances due from depository institutions in the United States n.a. 30,808 20,609 10,199 18,232 n.a. 7 Balances due from banks in foreign countries and foreign central banks n.a. 67,579 64,674 2,905 2,986 n.a. 8 Balances due from Federal Reserve Banks n.a. 12,973 93 12,881 9,579 n.a. MEMO 9 Noninterest-bearing balances due from commercial banks in the United States (included in balances due from depository institutions in the United States) n.a. n.a. n.a. 6,512 12,952 8,008 10 Total securities, loans and lease financing receivables, net 2,797,265 1,481,197 n.a. n.a. 985,465 326,708 11 Total securities, book value 622,646 257,095 31,411 225,684 250,255 114,677 12 U.S. Treasury securities and U.S. government agency and corporation obligations 447,008 171,697 3,461 168,236 184,895 89,969 13 U.S. Treasury securities n.a. 47,420 1,374 46,046 75,184 n.a. 14 U.S. government agency and corporation obligations n.a. 124,277 2,087 122,191 109,710 n.a. 15 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 154,025 81,579 1,382 80,198 51,274 21,171 16 All other n.a. 42,698 705 41,993 58,436 n.a. 17 Securities issued by states and political subdivisions in the United States 79,923 27,052 850 26,202 37,181 15,690 18 Other domestic debt securities n.a. 27,521 1,711 25,810 24,008 n.a. 19 All holdings of private certificates of participation in pools of residential mortgages 3,095 1,366 0 1,366 1,469 260 20 All other domestic debt securities 56,178 26,154 1,711 24,443 22,539 7,485 21 Foreign debt securities n.a. 26,120 24,272 1,848 356 n.a. 22 Equity securities 9,804 4,706 1,118 3,588 3,815 1,274 23 Marketable 4,254 1,271 135 1,136 2,036 947 24 Investments in mutual funds 2,437 453 18 435 1,115 869 25 Other 2,194 959 117 841 1,078 157 26 Less: Net unrealized loss 377 140 0 140 157 79 27 Other equity securities 5,550 3,435 982 2,453 1,779 327 28 Federal funds sold and securities purchased under agreements to resell 148,568 71,139 438 70,702 53,817 23,484 29 Federal funds sold 125,200 54,237 n.a. n.a. 47,746 23,088 30 Securities purchased under agreements to resell 23,368 16,902 n.a. n.a. 6,071 3% 31 Total loans and lease financing receivables, gross 2,093,415 1,195,597 207,443 988,155 701,010 193,565 32 LESS: Unearned income on loans 12,437 5,088 1,355 3,733 5,595 1,754 33 Total loans and leases (net of unearned income) 2,080,977 1,190,509 206,088 984,421 695,415 191,811 34 LESS: Allowance for loan and lease losses 54,685 37,305 n.a. n.a. 14,021 3,264 35 LESS: Allocated transfer risk reserves 242 241 n.a. n.a. 0 1 36 EQUALS: Total loans and leases, net 2,026,051 1,152,963 n.a. n.a. 681,394 188,547 Total loans, gross, by category 37 Loans secured by real estate 832,214 413,695 26,164 387,531 320,600 97,963 38 Construction and land development n.a. n.a. n.a. 77,522 37,405 6,498 39 Farmland n.a. n.a. n.a. 2,015 5,856 9,594 40 1-4 family residential properties n.a. n.a. n.a. 187,372 162,796 54,502 41 Revolving, open-end loans, extended under lines of credit n.a. n.a. n.a. 33,908 25,774 3,153 42 All other loans n.a. n.a. n.a. 153,464 137,023 51,350 43 Multifamily (5 or more) residential properties n.a. n.a. n.a. 10,938 9,253 1,807 44 Nonfarm nonresidential properties n.a. n.a. n.a. 109,683 105,290 25,561 45 Loans to depository institutions 50,913 39,911 16,731 23,180 10,428 319 46 To commercial banks in the United States n.a. 18,647 520 18,128 9,967 n.a. 47 To other depository institutions in the United States n.a. 1,669 98 1,572 437 n.a. 48 To banks in foreign countries n.a. 19,595 16,114 3,481 24 n.a. 49 Loans to finance agricultural production and other loans to farmers 32,242 5,259 252 5,007 9,038 17,945 50 Commercial and industrial loans 603,443 425,689 101,620 324,068 141,494 36,230 51 To U.S. addressees (domicile) n.a. 346,199 23,802 322,398 141,078 n.a. 52 To non-U.S. addressees (domicile) n.a. 79,489 77,819 1,671 417 n.a. 53 Acceptances of other banks 3,996 11,,116655 478 687 1,457 1,374 54 U.S. banks n.a. 660088 82 526 n.a. n.a. 55 Foreign banks n.a. 557 395 161 n.a. n.a. 56 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 389,488 159,616 16,097 143,519 190,688 36,184 57 Credit cards and related plans 131,686 49,810 n.a. n.a. 76,502 2,378 58 Other (includes single payment and installment) 257,802 109,806 n.a. n.a. 114,186 33,806 59 Obligations (other than securities) of states and political subdivisions in the U.S. (includes nonrated industrial development obligations) 32,911 19,170 276 18,894 12,328 1,413 60 Taxable 1,525 1,097 147 949 377 52 61 Tax-exempt 31,386 18,074 129 17,944 11,951 1,361 62 All other loans 111,228 100,665 42,034 58,630 8,925 1,639 63 Loans to foreign governments and official institutions n.a. 24,685 23,399 1,286 108 n.a. 64 Other loans n.a. 75,979 18,635 57,344 8,817 n.a. 65 Loans for purchasing and carrying securities n.a. n.a. n.a. 11,823 1,497 n.a. 66 All other loans n.a. n.a. n.a. 45,521 7,320 n.a. 67 Lease financing receivables 36,978 30,429 3,791 26,638 6,051 499 68 Assets held in trading accounts 53,921 52,228 27,034 25,042 1,501 192 69 Premises and fixed assets (including capitalized leases) 50,961 27,629 n.a. n.a. 17,160 6,104 70 Other real estate owned 24,187 14,115 n.a. n.a. 7,834 2,239 71 Investments in unconsolidated subsidiaries and associated companies 2,926 2,499 n.a. n.a. 375 53 72 Customers' liability on acceptances outstanding 19,147 18,751 n.a. n.a. 378 18 73 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs n.a. n.a. n.a. 47,504 n.a. n.a. 74 Intangible assets 11,088 6,614 n.a. n.a. 4,068 366 75 Other assets 118,204 86,642 n.a. n.a. 24,388 6,622 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A73 4.20—Continued Banks with foreign offices Bank o s ff w ic it e h s o d n o l m y estic Item TToottaall Total Foreign Domestic Over 100 76 Total liabilities, limited-life preferred stock, and equity capital 3,336,907 1,866,718 n.a. n.a. 1,100,422 77 Total liabilities7 3,114,627 1,760,353 425,487 1,412,195 1,017,891 78 Limited-life preferred stock 6 0 n.a. n.a. 4 79 Total deposits 2,596,936 1,361,080 305,074 1,056,006 907,293 80 Individuals, partnerships, and corporations n a. n a. 182,958 973,152 844,460 81 U.S. government n a. n a. n.a. 4,323 1,827 82 States and political subdivisions in the United States n a. n.a. n.a. 37,743 44,350 83 Commercial banks in the United States n a. n.a. n.a. 20,412 7,949 84 Other depository institutions in the United States n a. n.a. n.a. 4,957 2,966 85 Banks in foreign countries n.a. n a. n.a. 7,100 126 86 Foreign governments and official institutions n a. 20,276 19,175 1,100 50 87 Certified and official checks 15,622 $,218 999 7,220 5,564 88 All other8 101,942 n.a. n.a. 89 Total transaction accounts 302,380 225,821 90 Individuals, partnerships, and corporations 255,349 200,681 91 U.S. government 3,369 1,582 92 States and political subdivisions in the United States 9,154 11,030 93 Commercial banks in the United States 16,404 5,680 94 Other depository institutions in the United States 3,628 1,173 95 Banks in foreign countries 6,464 103 96 Foreign governments and official institutions 792 9 97 Certified and official checks 7,220 5,564 98 All other n.a. n.a. 99 Demand deposits (included in total transaction accounts) 219,979 131,623 100 Individuals, partnerships, and corporations 175,624 112,863 101 U.S. government 3,329 1,554 102 States and political subdivisions in the United States 6,576 4,705 103 Commercial banks in the United States 16,404 5,678 104 Other depository institutions in the United States n a. n.a. n.a. 3,582 1,147 105 Banks in foreign countries 6,453 103 106 Foreign governments and official institutions 791 9 107 Certified and official checks 7,220 5,564 108 All other n.a. n.a. 109 Total nontransaction accounts 753,626 681,472 110 Individuals, partnerships, and corporations 717,803 643,779 111 U.S. government 953 245 112 States and political subdivisions in the United States 28,589 33,320 113 Commercial banks in the United States 4,008 2,269 114 U.S. branches and agencies of foreign banks 299 429 115 Other commercial banks in the United States 3,709 1,841 116 Other depository institutions in the United States 1,328 1,793 117 Banks in foreign countries 636 24 118 Foreign branches of other U.S. banks 12 19 119 Other banks in foreign countries 623 5 120 Foreign governments and official institutions 308 41 121 All other n.a. n.a. 122 Federal funds purchased and securities sold under agreements to repurchase., 241,522 175,891 1,239 174,652 62,942 123 Federal funds purchased 149,291 113,797 n.a. n.a. 34,464 124 Securities sold under agreements to repurchase 92,231 62,093 n. a. n.a. 28,478 125 Demand notes issued to the U.S. Treasury n. a. n.a. n.a. 16,564 3,984 126 Other borrowed money 112,988 87,475 34,072 53,403 24,754 127 Banks liability on acceptances executed and outstanding 19,259 18,864 3,599 15,265 378 128 Notes and debentures subordinated to deposits 23,924 22,469 n.a. n.a. 1,346 129 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs... n.a. n.a. n a. 29,825 n.a. 130 All other liabilities 99,108 78,010 n a. n.a. 17,196 131 Total equity capital9 222,274 106,365 n.a. n.a. 82,527 MEMO 132 Holdings of commercial paper included in total loans, gross 694 309 384 2,800 133 Total individual retirement accounts (IRA) and Keogh plan accounts 60,774 57,614 134 Total brokered deposits 48,835 20,457 135 Total brokered retail deposits 26,591 15,682 136 Issued in denominations of $100,000 or less 3,371 4,582 137 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 23,220 11,100 Savings deposits 138 Money market deposit accounts (MMDAs) 207,754 144,030 139 Other savings deposits (excluding MMDAs) 93,938 85,232 140 Total time deposits of less than $100,000 260,371 324 141 Time certificates of deposit of $100,000 or more n.a. n.a. n. a. 161,414 124,524 142 Open-account time deposits of $100,000 or more 30,150 3,951 143 All NOW accounts (including Super NOW) 81,604 92,647 144 Total time and savings deposits 836,027 775,670 Quarterly averages 145 Total loans 967,038 690,872 146 Obligations (other than securities) of states and political subdivisions in the United States 19,436 12,380 147 Transaction accounts in domestic offices (NOW accounts, ATS accounts, and telephone and preauthorized transfer accounts) 80,993 92,561 Nontransaction accounts in domestic offices 148 Money market deposit accounts (MMDAs) 204,334 140,863 149 Other savings deposits 90,216 82,663 150 Time certificates of deposit of $100,000 or more 168,833 125,241 151 All other time deposits 1 292,513 328,432 152 Number of banks 12,224 227 n.a. n.a. 2,797 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Special Tables • August 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, March 31, 1991 Millions of dollars Members NNoonn-- Item TToottaall mmeemmbbeerrss Total National State 1 Total assets6 2,619,053 2,033,164 1,633,885 399,279 585,889 2 Cash and balances due from depository institutions— 149,225 119,657 98,851 20,806 29,568 3 Cash items in process of collection and unposted debits 70,130 61,708 51,491 10,217 8,422 4 Currency and coin 22,312 18,184 15,195 2,989 4,129 5 Balances due from depository institutions in the United States 28,430 17,638 14,715 2,923 10,792 6 Balances due from banks in foreign countries and foreign central banks 5,891 4,606 3,620 986 1,286 7 Balances due from Federal Reserve Banks 22,460 17,522 13,830 3,692 4,938 8 Total securities, loans and lease financing receivables, (net of unearned income) 2,280,294 1,753,162 1,425,712 327,450 527,131 9 Total securities, book value 475,939 352,230 271,753 80,477 123,709 10 U.S. Treasury securities 121,230 81,689 64,794 16,8% 39,541 11 U.S. government agency and corporation obligations 231,901 182,260 142,700 39,560 49,641 12 All noldings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 131,472 109,017 86,690 22,326 22,455 13 All other 100,429 73,243 56,009 17,234 27,186 14 Securities issued by states and political subdivisions in the United States 63,383 47,013 35,226 11,787 16,371 15 Other domestic debt securities 49,818 35,642 24,990 10,652 14,176 16 All holdings of private certificates of participation in pools of residential mortgages .. 2,835 1,885 1,636 250 950 17 All other 46,982 33,757 23,355 10,402 13,225 18 Foreign debt securities 2,204 1,641 893 748 563 19 Equity securities 7,403 3,985 3,150 835 3,418 20 Marketable 3,172 899 669 230 2,273 21 Investments in mutual funds 1,550 612 539 74 938 22 Other 1,920 351 172 180 1,568 23 Less: Net unrealized loss 298 65 42 23 233 24 Other equity securities 4,231 3,086 2,482 605 1,145 25 Federal funds sold and securities purchased under agreements to resell10 124,518 98,115 78,133 19,982 26,403 26 Federal funds sold 47,746 30,342 26,595 3,747 17,404 27 Securities purchased under agreements to resell 6,071 3,361 2,497 864 2,709 28 Total loans and lease financing receivables, gross 1,689,165 1,309,590 1,081,377 228,214 379,574 29 LESS: Unearned income on loans 9,328 6,773 5,551 1,222 2,555 30 Total loans and leases (net of unearned income) 1,679,836 1,302,817 1,075,825 226,992 377,019 Total loans, gross, by category 31 Loans secured by real estate 708,131 531,604 452,322 79,282 176,527 32 Construction and land development 114,927 90,047 74,340 15,707 24,881 33 Farmland 7,871 4,979 4,319 660 2,892 34 1-4 family residential properties 350,169 262,771 225,073 37,698 87,398 35 Revolving, open-end and extended under lines of credit 59,682 46,137 38,733 7,403 13,545 36 All other loans 290,487 216,634 186,340 30,294 73,852 37 Multifamily (5 or more) residential properties 20,191 14,785 12,665 2,120 5,406 38 Nonfarm nonresidential properties 214,973 159,022 135,926 23,097 55,951 39 Loans to commercial banks in the United States 28,095 19,258 14,861 4,398 8,836 40 Loans to other depository institutions in the United States 2,009 1,789 1,743 46 220 41 Loans to banks in foreign countries 3,505 3,434 1,826 1,609 70 42 Loans to finance agricultural production and other loans to farmers 14,045 10,158 9,185 972 3,888 43 Commercial and industrial loans 465,563 380,033 303,695 76,338 85,530 44 To U.S. addressees (domicile) 463,475 378,258 302,363 75,8% 85,217 45 To non-U.S. addressees (domicile) 2,088 1,775 1,332 442 313 46 Acceptances of other banks11 2,144 1,429 1,148 281 715 47 OfU.S. banks 1,175 886 678 208 289 48 Of foreign banks 205 154 147 6 52 49 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 334,207 246,043 209,014 37,029 88,164 50 Credit cards and related plans 76,502 43,460 40,882 2,578 33,042 51 Other (includes single payment and installment) 114,186 69,964 59,407 10,556 44,222 52 Loans to foreign governments and official institutions 1,394 1,334 1,045 289 60 53 Obligations (other than securities) of states and political subdivisions in the United States 31,222 25,934 19,542 6,392 5,288 54 Taxable 1,326 1,144 873 271 182 55 Tax-exempt 29,8% 24,790 18,669 6,121 5,106 56 Other loans 66,162 60,780 43,876 16,904 5,382 57 Loans for purchasing and carrying securities 13,320 12,111 7,413 4,697 1,210 58 All other loans 52,841 48,670 36,463 12,207 4,172 59 Lease financing receivables 32,689 27,794 23,121 4,673 4,895 60 Customers' liability on acceptances outstanding 15,353 13,967 10,568 3,399 1,386 61 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs 47,504 42,199 20,623 21,576 5,305 62 Remaining assets 174,182 146,378 98,754 47,624 27,804 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A73 4.21—Continued Members State 63 Total liabilities and equity capital 2,619,053 2,033,164 1,633,885 399,279 64 Total liabilities4 2,430,087 1,890,605 1,521,138 369,467 65 Total deposits 1,963,299 1,499,660 1,234,221 265,440 66 Individuals, partnerships, and corporations 1,817,612 1,385,772 1,142,091 243,681 67 U.S. government 6,150 5,381 4,625 755 68 States and political subdivisions in the United States 82,093 60,317 50,071 10,247 69 Commercial banks in the United States 28,361 25,002 20,086 4,915 70 Other depository institutions in the United States 7,923 5,842 5,128 714 71 Banks in foreign countries 7,226 6,508 3,810 2,698 72 Foreign governments and official institutions 1,150 1,028 564 464 73 Certified and official checks 12,784 9,811 7,846 1,965 74 Total transaction accounts 528,201 418,816 341,021 77,795 75 Individuals, partnerships, and corporations 456,030 357,524 292,497 65,026 76 U.S. government 4,951 4,276 3,669 607 77 States and political subdivisions in the United States 20,183 16,081 13,184 2,897 78 Commercial banks in the United States 22,083 20,264 16,456 3,808 79 Other depository institutions in the United States 4,801 3,953 3,380 573 8 8 0 1 B Fo a r n e k i s g n i n g f o o v r e e r i n g m n e c n o t u s n a tr n i d es official institutions 6,5 8 6 0 7 1 6,1 7 5 5 0 8 3,6 3 6 2 5 4 2,4 4 8 3 5 3 82 Certified and official checks 12,784 9,811 7,846 1,965 83 Demand deposits (included in total transaction accounts) 351,602 285,169 228,596 56,573 84 Individuals, partnerships, and corporations 288,487 230,520 185,610 44,910 85 U.S. government 4,883 4,232 3.629 603 86 States and political subdivisions in the United States 11,282 9,540 7,743 1,797 87 Commercial banks in the United States 22,081 20,263 16,455 3,808 88 Other depository institutions in the United States 4,729 3,897 3,324 573 89 Banks in foreign countries 6,555 6,148 3,665 2,484 90 Foreign governments and official institutions 800 757 324 433 91 Certified and official checks 12,784 9,811 7,846 1,965 92 Total nontransaction accounts 1,435,098 1,080,845 893,200 187,645 93 Individuals, partnerships, and corporations 1,361,582 1,028,248 849,593 178,655 94 U.S. government 1,199 1,104 956 148 95 States and political subdivisions in the United States 61,909 44,237 36,887 7,350 96 Commercial banks in the United States 6,277 4,738 3.630 1,108 97 U.S. branches and agencies of foreign banks 728 201 73 128 98 Other commercial banks in the United States 5,549 4,537 3,558 980 99 Other depository institutions in the United States 3,122 1,890 1,748 141 100 Banks in foreign countries 659 358 145 213 101 Foreign branches of other U.S. banks 31 26 13 13 102 Other banks in foreign countries 628 332 132 200 103 Foreign governments and official institutions 349 270 240 31 104 Federal funds purchased and securities sold under agreements to repurchase12 237,593 202,859 145,248 57,612 105 Federal funds purchased 34,464 24,823 21,357 3,467 106 Securities sold under agreements to repurchase 28,478 14,388 12,071 2,316 107 Demand notes issued to the U.S. Treasury 20,549 18,663 13,164 5,498 108 Other borrowed money 78,156 55,940 43,290 12,651 109 Banks liability on acceptances executed and outstanding 15,643 14,257 10,827 3,429 110 Notes and debentures subordinated to deposits 1,346 868 811 58 111 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs 29,825 25,142 23,240 1,902 112 Remaining liabilities 113,501 98,357 73,577 24,780 113 Total equity capital9 188,966 142,559 112,747 29,812 MEMO 114 Holdings of commercial paper included in total loans, gross 3,184 1,399 1,370 29 115 Total individual retirement accounts (IRA) and Keogh plan accounts 118,388 91,061 75,591 15,470 116 Total brokered deposits 69,292 51,252 43,876 7,376 117 Total brokered retail deposits 42,273 29,804 25,634 4,171 118 Issued in denominations of $100,000 or less 7,953 3,117 2,698 419 119 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 34,320 26,687 22,936 3,751 Savings deposits 120 Money market deposit accounts (MMDAs) 351,785 278,251 230,114 48,136 121 Other savings accounts 179,170 138,676 103,494 35,182 122 Total time deposits of less than $100,000 584,106 429,484 365,137 64,347 123 Time certificates of deposit of $100,000 or more 285,937 206,530 177,431 29,099 124 Open-account time deposits of $100,000 or more 34,100 27,904 17,023 10,881 125 All NOW accounts (including Super NOW accounts) 174,251 132,181 111,073 21,108 126 Total time and savings deposits 1,611,697 1,214,492 1,005,625 208,867 Quarterly averages 127 Total loans 1,657,910 1,284,717 1,058,238 226,479 128 Obligations (other than securities) of states and political subdivisions in the United States ... 31,816 26,511 19,557 6,954 129 Transaction accounts (NOW accounts, ATS accounts, and telephone preauthorized transfer accounts) 173,555 131,619 110,670 20,949 Nontransaction accounts 130 Money market deposit accounts (MMDAs) 345,197 273,634 225,199 48,434 131 Other savings deposits 172,879 133,503 99,632 33,871 132 Time certificates of deposits of $100,000 or more 294,074 213,880 183,611 30,270 133 All other time deposits 620,944 461,843 386,074 75,769 134 Number of banks 3,024 1,639 1,378 261 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Special Tables • August 1991 4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities1'2'6 Consolidated Report of Condition, March 31, 1991 Millions of dollars Members NNoonn-- Item Total mmeemmbbeerrss Total National State 1 Total assets6 2,983,977 2,176,907 1,747,649 429,258 807,069 2 Cash and balances due from depository institutions 171,848 128,849 106,305 22,544 42,998 3 Currency and coin 25,313 19,377 16,154 3,223 5,936 4 Noninterest-bearing balances due from commercial banks 27,472 15,316 12,385 2,930 12,156 5 Other 119,062 94,156 77,765 16,391 24,906 6 Total securities, loans, and lease financing receivables (net of unearned income) 2,610,266 1,882,845 1,528,126 354,719 727,421 7 Total securities, book value 590,616 396,850 308,125 88,726 193,766 8 U.S. Treasury securities and U.S. government agency and corporation obligations 443,100 299,285 236,368 62,918 143,815 9 Securities issued by states and political subdivisions in the United States 79,073 52,699 39,761 12,937 26,375 10 Other debt securities 59,766 40,316 28,386 11,930 19,450 11 All holdings of private certificates of participation in pools of residential mortgages .. 3,095 2,001 1,712 288 1,095 12 All other 56,836 38,481 26,840 11,642 18,355 13 Equity securities 8,677 4,550 3,610 941 4,127 14 Marketable 4,118 1,229 950 279 2,889 15 Investments in mutual funds 2,419 941 821 120 1,477 16 Other 2,076 379 193 186 1,697 17 Less: Net unrealized loss 377 91 64 27 285 1 1 8 9 Fe O de th ra e l r f e u q n u d i s ty s o s l e d c u a r n i d ti e s s e curities purchased under agreements to resell h 14 4 8 , , 5 0 5 0 8 2 10 3 8 , , 3 6 2 1 1 9 8 2 6 , ,5 6 2 6 5 0 22,0 6 9 6 4 2 39 1 , , 3 2 8 3 3 7 20 Federal funds sold 70,834 40,634 34,785 5,849 30,201 21 Securities purchased under agreements to resell 6,467 3,574 2,699 874 2,893 22 Total loans and lease financing receivables, gross 1,882,730 1,384,861 1,139,578 245,284 497,869 23 LESS: Unearned income on loans 11,082 7,486 6,102 1,384 3,597 24 Total loans and leases (net of unearned income) 1,871,648 1,377,376 1,133,476 243,900 494,272 Total loans, gross, by category 25 Loans secured by real estate 806,094 569,207 481,269 87,937 236,887 26 Construction and land development 121,426 92,818 76,355 16,462 28,608 27 Farmland 17,465 8,028 6,775 1,253 9,437 28 1-4 family residential properties 404,671 283,846 241,193 42,653 120,825 29 Revolving, open-end loans, and extended under lines of credit 62,835 47,516 39,736 7,780 15,319 30 All other loans 341,836 236,330 201,457 34,873 105,506 31 Multifamily (5 or more) residential properties 21,998 15,446 13,175 2,271 6,552 32 Nonfarm nonresidential properties 240,534 169,069 143,771 25,298 71,465 33 Loans to depository institutions 33,927 24,654 18,551 6,104 9,273 34 Loans to finance agricultural production and other loans to farmers 31,990 16,327 14,142 2,185 15,663 35 Commercial and industrial loans 501,793 394,972 314,919 80,052 106,821 36 Acceptances of other banks 3,519 2,007 1,659 348 1,512 37 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 370,391 260,575 220,478 40,098 109,816 38 Credit cards and related plans 78,880 44,659 41,974 2,685 34,221 39 Other (includes single payment installment) 147,991 83,297 69,779 13,517 64,695 40 Obligations (other than securities) of states and political subdivisions in the United States 32,635 26,428 19,947 6,481 6,207 41 Taxable 1,378 1,163 889 274 215 42 Tax-exempt 31,257 25,265 19,058 6,207 5,992 43 All other loans 69,194 62,734 45,353 17,381 6,461 44 Lease financing receivables 33,188 27,958 23,260 4,698 5,230 45 Customers' liability on acceptances outstanding 15,371 13,981 10,582 3,400 1,390 46 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs 47,584 42,279 20,704 21,576 5,305 47 Remaining assets 186,492 151,231 102,636 48,595 35,260 48 Total liabilities and equity capital 2,983,977 2,176,907 1,747,649 429,258 807,069 49 Total liabilities4 2,762,096 2,021,659 1,625,000 396,658 740,437 50 Total deposits 2,287,458 1,627,087 1,335,230 291,857 660,372 5 5 5 5 1 2 3 4 I S U C n t o . d a S m t i . e v m s i g d o e a u r v n a c d e l i r s a n , p l m o p b l a e i a t r n n i t c t k n a s e l r i s s n h u i b t p h d s e i , v U i a s n n i d o it n e c s d o i r n S p t o t a h r t a e e t s i U o n ns it ed States 2,1 1 1 2 0 6 5 9 3 , , , , 7 8 5 4 3 2 3 4 4 7 3 3 1,5 6 2 0 8 5 5 3 , , , , 6 0 2 7 2 7 8 7 2 1 3 2 1,2 5 2 3 4 6 0 5 , , , , 8 4 5 1 2 4 7 4 6 1 1 4 26 1 8 5 1 , , , 1 2 7 6 1 3 9 2 2 0 5 8 61 3 2 5 3 1 , , , , 5 3 1 7 4 6 1 7 4 3 2 1 55 Other depository institutions in the United States 8,883 6,183 5,399 785 2,700 56 Certified and official checks 14,615 10,591 8,451 2,140 4,024 57 All other 8,423 7,565 4,398 3,166 858 58 Total transaction accounts 610,085 452,335 368,018 84,317 157,750 59 Individuals, partnerships, and corporations 528,893 387,317 316,564 70,754 141,576 60 U.S. government 5,433 4,484 3,851 633 949 61 States and political subdivisions in the United States 26,090 18,182 14,953 3,229 7,908 62 Commercial banks in the United States 22,672 20,802 16,752 4,050 1,870 63 Other depository institutions in the United States 5,000 4,041 3,452 589 958 64 Certified and official checks 14,615 10,591 8,451 2,140 4,024 65 All other 7,382 6,918 3,995 2,923 464 66 Demand deposits (included in total transaction accounts) 392,107 302,344 242,239 60,104 89,764 67 Individuals, partnerships, and corporations 324,219 245,480 197,591 47,888 78,739 68 U.S. government 5,352 4,438 3,809 629 914 69 States and political subdivisions in the United States 12,962 10,137 8,249 1,888 2,826 70 Commercial banks in the United States 22,670 20,801 16,751 4,050 1,869 71 Other depository institutions in the United States 4,920 3,982 3,393 589 938 72 Certified and official checks 14,615 10,591 8,451 2,140 4,024 73 All other 7,370 6,916 3,995 2,921 454 74 Total nontransaction accounts 1,677,373 1,174,751 967,211 207,540 502,622 75 Individuals, partnerships, and corporations 1,586,934 1,115,966 918,607 197,359 470,968 76 U.S. government 1,301 1,137 975 162 163 77 States and political subdivisions in the United States 77,343 49,889 41,487 8,401 27,455 78 Commercial banks in the United States 6,870 4,970 3,792 1,178 1,900 79 Other depository institutions in the United States 3,884 2,142 1,947 195 1,742 80 All other 1,040 647 403 244 394 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 240,283 204,198 146,199 58,000 36,084 82 Federal funds purchased 35,494 25,416 21,713 3,702 10,078 83 Securities sold under agreements to repurchase 30,137 15,134 12,666 2,468 15,003 84 Demand notes issued to the U.S. Treasury 20,889 18,803 13,279 5,524 2,087 85 Other borrowed money 78,915 56,419 43,710 12,709 22,496 86 Banks liability on acceptances executed and outstanding 15,661 14,271 10,841 3,430 1,390 87 Notes and debentures subordinated to deposits 1,490 930 865 66 560 88 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs 29,825 25,142 23,240 1,902 4,683 89 Remaining liabilities 117,400 99,951 74,877 25,074 17,450 90 Total equity capital9 221,881 155,249 122,649 32,600 66,632 MEMO 91 Assets held in trading accounts 26,735 25,386 15,350 10,035 1,350 92 U.S. Treasury securities 11,324 11,004 4,964 6,040 321 93 U.S. government agency corporation obligations 2,852 2,733 2,388 345 119 94 Securities issued by states and political subdivisions in the United States 955 920 696 224 35 95 Other bonds, notes, and debentures 746 626 274 352 120 % Certificates of deposit 1,324 1,309 536 774 15 97 Commercial paper 90 90 90 0 0 98 Bankers acceptances 3,192 3,027 1,952 1,075 165 99 Other 5,415 5,264 4,097 1,168 151 100 Total individual retirement accounts (IRA) and Keogh plan accounts 136,917 98,112 81,204 16,908 38,805 101 Total brokered deposits 70,104 51,432 43,991 7,441 18,672 102 Total brokered retail deposits 43,038 29,977 25,747 4,230 13,060 103 Issued in denominations of $100,000 or less 8,499 3,248 2,783 465 5,251 104 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 34,539 26,729 22,964 3,765 7,809 Savings deposits 105 Money market deposit accounts (MMDAs) 388,039 293,822 242,456 51,366 94,216 106 Other savings deposits 207,565 149,867 112,309 37,559 57,698 107 Total time deposits of less than $100,000 723,952 481,416 406,008 75,408 242,537 108 Time certificates of deposit of $100,000 or more 322,511 221,310 189,063 32,246 101,201 109 Open-account time deposits of $100,000 or more 35,306 28,336 17,375 10,961 6,970 110 All NOW accounts (including Super NOW) 214,426 148,150 124,136 24,014 66,276 111 Total time and savings deposits 1,895,351 1,324,743 1,092,990 231,753 570,608 Quarterly averages 112 Total loans 1,847,960 1,358,776 1,115,585 243,191 489,184 113 Transaction accounts (NOW accounts, ATS accounts, and telephone and preauthorized transfer accounts) 214,398 147,753 123,842 23,911 66,645 Nontransaction accounts 114 Money market deposit accounts (MMDAs) 380,914 289,003 237,401 51,603 91,911 115 Other savings deposits 200,394 144,343 108,163 36,180 56,051 116 Time certificates of deposit of $100,000 or more 330,237 228,487 195,097 33,390 101,750 117 All other time deposits 761,504 514,023 427,197 86,826 247,482 118 Number of banks 12,224 4,953 3,959 994 7,271 1. Effective Mar. 31,1984, the report of condition was substantially revised for refers to those respondents whose assets, as of June 30 of the previous calendar commercial banks. Some of the changes are as follows: (1) Previously, banks with year, were less than $100 million. (These respondents filed the FFIEC 034 call international banking facilities (IBFs) that had no other foreign offices were report.) considered domestic reporters. Beginning with the Mar. 31, 1984 call report these 6. Since the domestic portion of allowances for loan and lease losses and banks are considered foreign and domestic reporters and must file the foreign and allocated transfer risk reserve are not reported for banks with foreign offices, the domestic report of condition; (2) banks with assets greater than $1 billion have components of total assets (domestic) will not add to the actual total (domestic). additional items reported; (3) the domestic office detail for banks with foreign 7. Since the foreign portion of demand notes issued to the U.S. Treasury is not offices has been reduced considerably; and (4) banks with assets under $25 million reported for banks with foreign offices, the components of total liabilities (foreign) have been excused from reporting certain detail items. will not add to the actual total (foreign). 2. The "n.a." for some of the items is used to indicate the lesser detail available 8. The definition of 'all other' varies by report form and therefore by column in from banks without foreign offices, the inapplicability of certain items to banks this table. See the instructions for more detail. that have only domestic offices and/or the absence of detail on a fully consolidated 9. Equity capital is not allocated between the domestic and foreign offices of basis for banks with foreign offices. banks with foreign offices. 3. All transactions between domestic and foreign offices of a bank are reported 10. Only the domestic portion of federal funds sold and securities purchased in "net due from" and "net due to." All other lines represent transactions with under agreements to resell are reported here, therefore, the components will not parties other than the domestic and foreign offices of each bank. Since these add to totals for this item. intraoffice transactions are nullified by consolidation, total assets and total 11. "Acceptances of other banks" is not reported by domestic respondents less liabilities for the entire bank may not equal the sum of assets and liabilities than $300 million in total assets, therefore the components will not add to totals for respectively, of the domestic and foreign offices. this item. 4. Foreign offices include branches in foreign countries, Puerto Rico, and in 12. Only the domestic portion of federal funds purchased and securities sold U.S. territories and possessions; subsidiaries in foreign countries; all offices of are reported here, therefore the components will not add to totals for this item. Edge act and agreement corporations wherever located and IBFs. 13. Components of assets held in trading accounts are only reported for banks 5. The 'over 100' column refers to those respondents whose assets, as of June with total assets of $1 billion or more; therefore the components will not add to the 30 of the previous calendar year, were equal to or exceeded $100 million. (These totals for this item. respondents file the FFIEC 032 or FFIEC 033 call report.) The 'under 100' column Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Special Tables • August 1991 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 4-8, 19911 A. Commercial and Industrial Loans Characteristic ( A o t f h m o l d o o u o a u s l n n a la s t n r d s o s ) f ( o t A f h o v d s u e o iz s r l a e l a a g n r e d s ) s W m a a v e t e i u g r r a h i g t t e y e d 2 W av L e e i o g r a a h n g t e e r d a te (p S er ta c n en d t a ) r d c s o L e l c l o b a u a y t r n e e r s d a l c L o u m m m n o a e d a m d n n e e t r i s t - (p P p l e a o a r r t a c t i i n o e c s n n i - t) Days effective3 (percent) (percent) ALL BANKS 1 Overnight6 9,719,619 6,809 7.19 9.6 68.1 9.6 2 One month and under (excluding overnight) 8,563,772 846 20 8.06 30.0 87.1 15.1 3 Fixed rate 6,729,844 1,116 20 7.89 27.0 84.6 15.5 4 Floating rate 1,833,933 448 21 8.69 40.7 96.3 13.9 5 Over one month and under a year . 9,836,975 131 164 9.00 50.4 11.7 6 Fixed rate 3,341,492 111 130 8.42 38.6 67.5 13.0 7 Floating rate 6,495,483 145 182 9.29 56.5 87.6 11.0 8 Demand7 16,364,334 240 9.03 62.4 74.1 6.9 9 Fixed rate 2,385,222 690 7.84 30.4 86.8 11.5 10 Floating rate 13,979,112 224 9.23 67.9 72.0 6.1 11 Total short term 44,484,699 287 64 8.43 42.0 76.8 10.1 12 Fixed rate (thousands of dollars) .. 22,176,171 540 29 7.66 21.5 75.0 12.1 13 1-99 477,022 14 128 11.29 72.0 29.4 .7 14 100-499 483,065 202 120 10.20 66.7 55.5 12.7 15 500-999 429,218 687 54 8.19 38.4 81.2 7.0 16 1000-4999 3,734,091 2,367 39 7.87 33.0 78.8 10.3 17 5000-9999 4,537,908 6,514 38 7.74 22.9 78.2 8.3 18 10000 and over 12,514,867 18,969 17 7.31 13.3 75.0 14.6 19 Floating rate (thousands of dollars) 22,308,528 200 147 9.20 62.3 78.5 8.2 20 1-99 2,106,094 24 156 10.68 79.9 78.3 3.8 21 100-499 3,467,629 201 163 10.20 76.4 84.1 6.3 22 500-999 1.881.575 666 185 9.97 68.4 84.9 9.7 23 1000-4999 5,394,634 1,984 154 9.51 65.8 87.5 10.3 24 5000-9999 2.648.576 6,719 158 9.15 46.3 92.2 19.2 25 10000 and over, 6,810,020 21,625 110 7.80 51.5 61.5 4.1 Months 26 Total long term 6,115,322 218 9.34 66.5 73.7 13.6 27 Fixed rate (thousands of dollars) .. 1,335,873 116 8.66 47.6 79.1 9.2 28 1-99 187,266 18 11.73 84.8 20.9 .1 29 100-499 99,221 182 10.32 85.7 47.4 1.5 30 500-999 46,969 676 9.49 68.7 52.5 7.0 31 1000 and over 1,002,417 5,074 7.88 35.9 94.4 11.8 32 Floating rate (thousands of dollars) 4,779,449 289 9.53 71.8 72.1 14.8 33 1-99 309,852 27 11.12 85.4 47.7 1.6 34 100-499 701,167 213 10.33 86.2 55.3 6.0 35 500-999 417,942 675 9.92 73.9 61.8 9.9 36 1000 and over 3,350,489 3,395 9.16 67.2 79.2 18.3 Loan rate (percent) Days Effective3 Nominal8 LOANS MADE BELOW PRIME10 37 Overnight6 9,570,037 9,290 7.15 6.90 9.7 68.0 9.7 38 One month and under (excluding overnight) 7,226,980 2,799 19 7.63 7.37 21.7 87.0 13.2 39 Over one month and under a year 4,796,629 597 148 7.57 7.33 26.4 83.6 15.2 40 Demand7 6,311,121 2,142 7.26 7.09 51.1 57.3 5.8 41 Total short term 27,904,768 1,913 40 7.37 7.14 25.0 10.7 42 Fixed rate 20,249,255 2,363 24 7.39 7.15 17.6 76.0 12.2 43 Floating rate 7,655,513 1,271 123 7.33 7.12 44.7 65.7 6.6 Months 44 Total long term 2,441,163 47 7.68 41.5 78.5 9.7 45 Fixed rate 943,260 617 7.66 7.51 31.7 92.1 12.4 46 Floating rate .. 1,497,903 926 7.70 7.46 47.7 70.0 8.0 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A79 4.23—Continued A.—Continued Characteristic ( A o t f h m o l d o o u o a u s l n n l a a s t n r d s o ) s f ( o t A f h o v d s u e o iz s r l a l e a a g n r e d s ) s W m av a e t e i u g r r a h i g t t e y e d 2 W av L e e i o g r a a h n g t e e r d a te (p S er ta c n en d t a ) r d c s o L e l c l o b a u a y t r e n e r s d a l c L o u m m m n o a e d a m d n n e e t r i s t - (p P p l e a o a r r t a c t i i n e o c s n n i - t ) Days effective3 (percent) (percent) LARGE BANKS 1 Overnight6 7,841,126 9,682 7.24 9.6 60.6 10.3 2 One month and under (excluding overnight) 6,568,726 3,489 20 7.% 30.0 85.8 15.0 3 Fixed rate 5,004,424 4,625 20 7.83 27.0 82.0 15.3 4 Floating rate 1,564,301 1,954 21 8.40 40.7 97.6 .13.8 5 Over one month and under a year. 5,367,345 747 146 8.28 50.4 86.6 10.1 6 Fixed rate 2,195,119 2,373 116 7.85 38.6 78.7 12.5 7 Floating rate 3,172,226 506 167 8.58 56.5 92.1 8.4 8 Demand7 10,426,673 356 8.77 62.4 64.6 6.9 1 9 0 F F i l x o e a d ti n r g a t r e a te 8 1 , , 9 4 2 9 6 9 , , 7 9 4 2 5 8 1,2 3 1 1 7 8 7 8. .7 % 0 6 3 7 0 . . 9 4 8 6 1 1 . . 8 7 1 5 4 . . 6 6 11 Total short term 30,206,869 772 47 8.11 42.0 72.1 10.1 12 Fixed rate (thousands of dollars) .. 16,543,5% 4,085 24 7.54 21.5 71.4 12.5 13 1-99 27,532 25 111 10.24 72.0 46.0 1.5 14 100-499 110,241 224 62 9.04 66.7 72.2 1.7 15 500-999 207,425 666 56 8.39 38.4 77.3 7.9 16 1000-4999 2,713,765 2,400 39 7.90 33.0 75.0 8.6 17 5000-9999 3,331,6% 6,570 38 7.80 22.9 74.1 8.2 18 10000 and over 10,152,937 19,452 15 7.32 13.3 69.5 15.2 19 Floating rate (thousands of dollars) 13,663,272 389 119 8.80 62.3 72.8 7.2 20 1-99 649,585 26 160 10.24 79.9 73.4 .7 21 100-499 1,401,232 210 146 10.00 76.4 83.5 3.3 22 500-999 798,801 675 157 9.75 68.4 87.4 7.4 23 1000-4999 2,856,275 2,068 114 9.23 65.8 84.3 9.9 24 5000-9999 1,957,660 6,720 131 9.09 46.3 91.6 15.9 25 10000 and over 5,999,719 22,950 105 7.95 51.5 56.7 4.6 Months 26 Total long term 4,143,457 784 8.94 66.5 77.1 9.6 27 Fixed rate (thousands of dollars).. 764,482 1,703 7.84 47.6 93.2 11.8 28 1-99 5,628 24 10.87 84.8 27.8 .0 29 100-499 18,995 224 9.73 85.7 70.4 .0 30 500-999 15,636 678 9.05 68.7 88.6 .0 31 1000 and over 724,223 7,106 7.74 35.9 94.4 12.5 32 Floating rate (thousands of dollars) 3,378,975 9.18 71.8 73.5 9.1 33 1-99 75,709 33 10.46 85.4 44.5 3.5 34 100-499 337,404 234 9.94 86.2 49.6 7.1 35 500-999 305,015 689 9.88 73.9 57.4 6.6 36 1000 and over 2,660,847 4,163 8.97 67.2 79.2 9.7 Loan rate (percent) Days Effective3 Nominal8 LOANS MADE BELOW PRIME10 37 Overnight6 7,699,584 9,905 7.19 6.94 8.1 10.5 38 One month and under (excluding overnight) 5,721,803 5,207 20 7.65 7.39 22.9 84.9 13.6 39 Over one month and under a year 3,5%,049 3,872 132 7.44 7.22 25.0 84.6 10.9 40 Demand7 4,546,452 4,439 7.17 7.00 57.8 42.2 5.4 41 Total short term 21,563,888 5,632 35 7.35 7.12 25.3 67.1 10.3 42 Fixed rate 15,536,155 5,910 22 7.39 7.15 15.6 70.7 12.7 43 Floating rate 6,027,733 5,022 103 7.25 7.04 50.54 57.8 4.2 Months 44 Total long term 1,993,929 2,947 47 7.53 7.34 39.0 81.2 10.0 45 Fixed rate 642,751 4,128 7.42 7.33 27.2 95.4 14.1 46 Floating rate .. 1,351,178 2,594 7.58 7.34 44.6 74.4 8.1 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Special Tables • August 1991 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 4-8, 1991 Continued A. Commercial and Industrial Loans—Continued Amount of Average W av e e ig ra h g te e d Loan rate (percent) s L ec o u a r n e s d L m o a a d n e s Partici- Characteristic ( o t f h o l d o u o a s l n l a s a n r d s) s ( o t f h o d s u o iz s l e l a a n r d s s ) ma D tu a r y i s t y2 W e a f v f e e e ig c r t a h i g t v e e e d 3 Standard c (p o e ll r b a c y t e e n ra t) l ( c p o u m e m n r e c d m n e e t n i r t t - ) (p p l e a o r t a c i n e o s n n t) OTHER BANKS 1 Overnight6 1,875,493 3,039 6.97 16.3 2 One month and under (excluding overnight) 1,995,046 242 19 8.37 32.3 91.3 15.6 3 Fixed rate 1,725,414 349 19 8.05 25.4 91.8 15.8 4 Floating rate 269,632 82 23 10.37 76.6 88.3 14.2 5 Over one month and under a year . 4,469,630 66 186 9.86 62.0 73.8 13.7 6 Fixed rate 1,146,373 39 157 9.51 57.8 46.1 14.3 7 Floating rate 3,323,257 86 196 9.98 63.5 83.4 13.5 8 Demand7 5,937,661 152 9.47 65.9 90.9 6.9 9 Fixed rate 885,295 398 8.09 48.7 95.4 6.3 10 Floating rate 5,052,367 147 9.71 69.0 90.2 7.0 11 Total short term 14,277,830 123 105 9.11 53.5 86.7 10.2 12 Fixed rate (thousands of dollars) .. 5,632,575 152 45 8.00 32.6 85.6 11.0 13 1-99 449,490 13 128 11.36 73.4 28.4 .7 1 1 4 5 5 1 0 0 0 0 - - 9 4 9 9 9 9 3 22 7 1 2 , , 7 8 9 2 3 3 7 1 0 9 8 6 1 5 3 2 3 1 8 0 . . 0 5 0 4 4 7 3 3 . . 3 8 5 84 0 . . 8 6 166..81 16 1000-4999 1,020,326 2,286 38 7.81 46.7 89.0 14.9 17 5000-9999 1,206,212 6,367 40 7.58 32.5 89.5 8.5 18 10000 and over 2,361,930 17,141 22 7.25 11.3 98.5 12.0 19 Floating rate (thousands of dollars) 8,645,255 113 183 9.83 67.1 87.5 9.7 20 1-99 1,456,509 23 155 10.87 79.5 80.5 5.1 21 100-499 2,066,397 196 170 10.34 78.7 84.6 8.4 22 500-999 1,082,774 660 201 10.14 73.4 83.0 11.3 23 1000-4999 2,538,359 1,897 196 9.84 74.7 91.1 10.7 24 5000-9999 690,916 6,717 249 9.33 36.7 93.6 28.8 25 10000 and over 810,301 15,151 160 6.69 97.2 .0 Months 26 Total long term 1,971,865 87 10.18 .19 79.0 66.4 22.0 27 Fixed rate (thousands of dollars) .. 571,391 52 9.75 .35 63.1 60.3 5.8 28 1-99 181,638 17 11.76 .12 85.1 20.7 .2 29 100-499 80,226 175 10.46 .25 89.6 42.0 2.8 30 500-999 31,332 675 9.71 .72 71.8 34.4 10.5 31 1000 and over 278,194 2,909 8.24 .35 40.1 94.3 9.9 32 Floating rate (thousands of dollars) 1,400,474 120 10.35 .15 85.5 68.9 28.6 33 1-99 234,143 25 11.33 .14 86.0 48.8 .9 34 100-499 363,763 196 10.69 .14 89.9 60.5 6.9 35 500-999 112,927 639 10.03 .22 62.9 73.5 18.9 36 1000 and over 689,642 1,983 9.89 .25 86.6 79.5 51.1 Loan rate (percent) Days Effective3 Nominal9 LOANS MADE BELOW PRIME" 37 Overnight6 1,870,454 7,397 6.73 16.2 99.3 6.7 38 One month and under (excluding overnight) 1,505,178 1,015 18 7.56 7.30 17.0 95.2 11.4 39 Over one month and under a year 1,200,580 169 197 7.95 7.68 30.4 80.5 28.5 40 Demand" 1,764,669 918 7.49 7.31 33.8 96.2 6.7 41 Total short term 6,340,879 589 58 7.44 7.21 24.0 93.9 11.9 42 Fixed rate 4,713,100 793 33 7.37 7.14 24.2 93.6 10.8 43 Floating rate 1,627,780 338 206 7.63 7.41 23.2 94.9 15.2 Months 44 Total long term 447,234 181 45 8.38 8.11 52.8 66.7 8.9 45 Fixed rate 300,509 219 8.17 7.91 41.2 85.0 9.1 46 Floating rate .. 146,725 134 8.79 8.51 76.4 29.3 8.4 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A81 *Fewer than 10 sample loans. complete survey of lending at all banks. 1. The survey of terms of bank lending to business collects data on gross loan 5. The most common base rate is that rate used to price the largest dollar extensions made during the first full business week in the mid-month of each volume of loans. Base pricing rates include the prime rate (sometimes referred to quarter by a sample of 340 commercial banks of all sizes. The sample data are used as a bank's "basic" or "reference" rate); the federal funds rate; domestic money to estimate the lending terms at all insured commercial banks during that week. market rates other than the federal funds rate; foreign money market rates; and The estimated terms of bank lending are not intended for use in collecting the other base rates not included in the foregoing classifications. terms of loans extended over the entire quarter or residing in the portfolios of 6. Overnight loans are loans that mature on the following business day. those banks. 7. Demand loans have no stated date of maturity. As of Sept. 30, 1990, assets of most of the large banks were at least $7.0 billion. 8. Nominal (not compounded) annual interest rates are calculated from survey For all insured banks total assets averaged $275 million. data on the stated rate and other terms of the loan and weighted by loan size. 2. Average maturities are weighted by loan size and exclude demand loans. 9. The prime rate reported by each bank is weighted by the volume of loans 3. Effective (compounded) annual interest rates are calculated from the stated extended and then averaged. rate and other terms of the loan and weighted by loan size. 10. The proportion of loans made at rates below prime may vary substantially 4. The chances are about two out of three that the average rate shown would from the proportion of such loans outstanding in banks' portfolios. differ by less than this amount from the average rate that would be found by a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Special Tables • August 1991 4.31 Pro forma balance sheet for priced services of the Federal Reserve System1 Millions of dollars Item Mar. 31, 1991 Mar. 30, 1989 Short-term assets2 Imputed reserve requirement on clearing balances 317.3 204.7 Investment in marketable securities 2,326.7 1,501.3 Receivables 59.8 61.9 Materials and supplies 6.1 6.5 Prepaid expenses 35.0 28.0 Items in process of collection 2,864.4 2,872.3 Total short-term assets 5,609.3 4,674.6 Long-term assets3 Premises 328.0 291.7 Furniture and equipment 158.6 125.5 Leases and leasehold improvements 16.9 6.0 Prepaid pension costs 75^9 55.8 Total long-term assets 579.4 479.0 Total assets 6,188.7 5,153.6 Short-term liabilities Clearing balances and balances arising from early credit of uncollected items 3.058.6 2,114.3 Deferred availability items 2.449.7 2,464.0 Short-term debt 101.0 96.3 Total short-term liabilities 5,609.3 4,674.6 Long-term liabilities Obligations under capital leases 1.2 1.2 Long-term debt 159.7 134.2 Total long-term liabilities 160.9 135.4 Total liabilities 5,770.3 4,810.0 Equity 418.5 343.6 Total liabilities and equity4 6,188.7 5,153.6 1. Details may not sum to totals because of rounding. collected for government agencies; and items associated with providing fixed 2. The imputed reserve requirement on clearing balances and investment in availability or credit prior to receipt and processing of items. The cost base for marketable securities reflect the Federal Reserve's treatment of clearing balances providing services that must be recovered under the Monetary Control Act maintained on deposit with Reserve Banks by depository institutions. For includes the cost of float (the difference between the value of gross CIPC and the presentation of the balance sheet and the income statement, clearing balances are value of deferred availability items) incurred by the Federal Reserve during the reported in a manner comparable to the way corresp9ndent banks report period, valued at the federal funds rate. The amount of float, or net CIPC, compensating balances held with them by respondent institutions. That is, represents the portion of gross CIPC that involves a financing cost. respondent balances held with a correspondent are subject to a reserve require- 3. Long-term assets on the balance sheet have been allocated to priced services ment established by the Federal Reserve. This reserve requirement must be with the direct determination method, which uses the Federal Reserve's Planning satisfied with either vault cash or with nonearning balances maintained at a and Control System (PACS) to ascertain directly the value of assets used solely in Reserve Bank. Following this model, clearing balances maintained with Reserve priced services operations and to apportion the value of jointly used assets Banks for priced service purposes are subjected to imputed reserve requirements. between priced services and nonpriced services. Also, long-term assets include an Therefore, a portion of the clearing balances held with the Federal Reserve is estimate of the assets of the Board of Governors directly involved in the classified on the asset side of the balance sheet as required reserves and is development of priced services. reflected in a manner similar to vault cash and due from bank balances normally Long-term assets include amounts for capital leases and leasehold improveshown on a correspondent bank's balance sheet. The remainder of clearing ments and for prepaid pension costs associated with priced services. Effective balances is assumed to be available for investment. For these purposes, the January 1, 1987, the Federal Reserve Banks implemented Financial Accounting Federal Reserve assumes that all such balances are invested in three-month Standards Board Statement No. 87, Employer's Accounting for Pensions. Treasury bills. 4. A matched-book capital structure has been used for those assets that are not The account "items in the process of collection" (C1PC) represents the gross "self-financing" in determining liability and equity amounts. Short-term assets amount of Federal Reserve CIPC as of the balance sheet date, stated on a basis are financed with short-term debt. Long-term assets are financed with long-term comparable with a commercial bank. Adjustments have been made for intra- debt and equity in a proportion equal to the ratio of long-term debt to equity for System items that would otherwise be double-counted on a consolidated Federal the bank holding companies used in the model for the private sector adjustment Reserve balance sheet; items associated with nonpriced items, such as items factor (PSAF). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank Reported Data A83 4.32 Pro forma income statement for priced services of the Federal Reserve System1 Millions of dollars Quarters ending Mar. 30 IItteemm 1991 1990 Income services provided to depository institutions2 181.4 181.9 Production expenses3 149.7 145.8 Income from operations 31.6 36.1 Imputed costs4 Interest on float 6.1 8.4 Interest on debt 4.8 4.2 Sales taxes 2.3 1.8 FDIC insurance 2.0 15.2 1.2 15.6 Income from operations after imputed costs 16.4 20.5 Other income and expenses5 Investment income Earnings credits 41.5 37.6 Income before income taxes 35.1 6.4 32.9 4.8 Imputed income taxes6 22.8 25.2 Net income 7.0 7.0 15.8 18.2 MEMO Targeted return on equity6 8.1 8.4 1. The income statement reflects income and expenses for priced services. Float recovered through per-item fees is valued at the federal funds rate and has Included in these amounts are the imputed costs of float, imputed financing costs, been added to the cost base subject to recovery in the first quarter of 1991. and the income related to clearing balances. Total float 814.5 Details may not add to totals because of rounding. Unrecovered float 42.5 2. Income represents charges to depository institutions for priced services. Float subject to recovery 772.0 This income is realized through one of two methods: direct charges to an Sources of float recovery institution's account or charges against accumulated earnings credits. Income Income on clearing balances 92.5 includes charges for per-item fees, fixed fees, package fees, explicitly priced float, As of adjustments 399.1 account maintenance fees, shipping and insurance fees, and surcharges. Direct charges 155.9 3. Production expenses include direct, indirect, and other general administra- Per-item fees 124.5 tive expenses of the Federal Reserve Banks for providing priced services. Also Also included in imputed costs is the interest on debt assumed necessary to included are the expenses of staff members of the Board of Governors working finance priced-service assets and the sales taxes and FDIC insurance assessment directly on the development of priced services, which amounted to $0.5 million that the Federal Reserve would have paid had it been a private-sector firm. and $0.4 million in the first quarter for 1991 and 1990, respectively. Because of a change in the methodology for imputing PSAF costs approved in 4. Imputed float costs represent the value of float to be recovered, either 1989, FDIC insurance is now calculated on the basis of actual clearing balances explicitly or through per-item fees, during the period. Float costs include those for and credits that are deferred to depository institutions. Previously, the assessment checks, book-entry securities, noncash collection, ACH, and wire transfers. was calculated on the basis of available funds. The following table depicts the daily average recovery of float by the Federal 5. Other income and expenses consist of income on clearing balances and the Reserve Banks for the first quarter of 1991. In the table, unrecovered float cost of earnings credits granted to depository institutions on their clearing includes that generated by services to government agencies or by other central balances. Income on clearing balances represents the average coupon-equivalent bank services. yield on three-month Treasury bills applied to the total clearing balance main- Float recovered through income on clearing balances represents increased tained, adjusted for the effect of reserve requirements on clearing balances. investable clearing balances as a result of reducing imputed reserve requirements Expenses for earnings credits are derived by applying the average federal funds through the use of a deduction for float for cash items in process of collection rate to the required portion of the clearing balances, adjusted for the net effect of when calculating the reserve requirement. This income then reduces the float reserve requirements on clearing balances. required to be recovered through other means. 6. Imputed income taxes are calculated at the effective tax rate derived from a As-of adjustments and direct charges refer to midweek closing float and model consisting of the 50 largest bank holding companies. The targeted return on interterritory check float, which may be recovered from depositing institutions equity represents the after-tax rate of return on equity that the Federal Reserve through adjustments to the institution's reserve or clearing balance or by valuing would have earned had it been a private business firm, based on the bank holding the float at the federal funds rate and billing the institution directly. company model. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 Federal Reserve Board of Governors and Official Staff ALAN GREENSPAN, Chairman WAYNE D. ANGELL EDWARD W. KELLEY, JR. OFFICE OF BOARD MEMBERS DIVISION OF INTERNATIONAL FINANCE JOSEPH R. COYNE, Assistant to the Board EDWIN M. TRUMAN, Staff Director DONALD J. WINN, Assistant to the Board LARRY J. PROMISEL, Senior Associate Director BOB STAHLY MOORE, Special Assistant to the Board CHARLES J. SIEGMAN, Senior Associate Director DIANE E. WERNEKE, Special Assistant to the Board DAVID H. HOWARD, Deputy Associate Director ROBERT F. GEMMILL, Staff Adviser LEGAL DIVISION DONALD B. ADAMS, Assistant Director 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 DAVID J. STOCKTON, Associate Director JENNIFER J. JOHNSON, Associate Secretary MARTHA BETHEA, Deputy Associate Director BARBARA R. LOWREY, Associate Secretary PETER A. TINSLEY, Deputy Associate Director 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 BARRY R. SNYDER, Assistant Inspector General JOE M. CLEAVER, Assistant Director ROGER T. COLE, Assistant Director JAMES I. GARNER, Assistant Director JAMES D. GOETZINGER, Assistant Director MICHAEL G. MARTINSON, Assistant Director ROBERT S. PLOTKIN, Assistant Director SIDNEY M. Suss AN, Assistant Director LAURA M. HOMER, Securities Credit Officer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A85 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 JEFFREY C. MARQUARDT, Assistant Director JOHN H. PARRISH, Assistant Director OFFICE OF THE CONTROLLER LOUISE L. ROSEMAN, Assistant Director GEORGE E. LIVINGSTON, Controller FLORENCE M. YOUNG, Assistant Director 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 APPUCATIONS 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

A86 Federal Reserve Bulletin • August 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. GDLLUM, 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

A87 CONSUMER ADVISORY COUNCIL JAMES W. HEAD, Berkeley, California, Chairman LINDA K. PAGE, Columbus, Ohio, Vice Chairman VERONICA E. BARELA, Denver, Colorado JULIA E. HILER, Marietta, Georgia GEORGE H. BRAASCH, Oakbrook, Illinois HENRY JARAMILLO, Belen, New Mexico TOYE L. BROWN, Boston, Massachusetts BARBARA KAUFMAN, San Francisco, California CLIFF E. COOK, Tacoma, Washington KATHLEEN E. KEEST, Boston, Massachusetts R.B, (JOE) DEAN, JR., Columbia, South Carolina COLLEEN D. HERNANDEZ, 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

A88 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 be 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. 231pp. $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 August 1990. 646 pp. $10.00. to Fair Lending 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. I (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

A89 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. 161. A REVIEW OF CORPORATE RESTRUCTURING ACTIVITY, 1980-90, by Margaret Hastings Pickering. May 1991. 21pp. Staff Studies 1-145 are out of print. 146. THE ROLE OF THE PRIME RATE IN THE PRICING OF BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84, by REPRINTS OF SELECTED Bulletin ARTICLES Thomas F. Brady. November 1985. 25 pp. Some Bulletin articles are reprinted. The articles listed below 147. REVISIONS IN THE MONETARY SERVICES (DIVISIA) IN- are those for which reprints are available. Most of the articles DEXES OF THE MONETARY AGGREGATES, by Helen T. Farr reprinted do not exceed twelve pages. and Deborah Johnson. December 1985. 42 pp. 148. THE MACROECONOMIC AND SECTORAL EFFECTS OF THE Limit of ten copies ECONOMIC RECOVERY TAX ACT: SOME SIMULATION RESULTS, by Flint Brayton and Peter B. Clark. December Recent Developments in the Bankers Acceptance Market. 1/86. 1985. 17 pp. The Use of Cash and Transaction Accounts by American 149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS IN Families. 2/86. BANKING BEFORE AND AFTER ACQUISITION, by Stephen Financial Characteristics of High-Income Families. 3/86. A. Rhoades. April 1986. 32 pp. Prices, Profit Margins, and Exchange Rates. 6/86. 150. STATISTICAL COST ACCOUNTING MODELS IN BANKING: Agricultural Banks under Stress. 7/86. A REEXAMINATION AND AN APPLICATION, by John T. Foreign Lending by Banks: A Guide to International and U.S. Rose and John D. Wolken. May 1986. 13 pp. Statistics. 10/86. 151. RESPONSES TO DEREGULATION : RETAIL DEPOSIT PRICING Recent Developments in Corporate Finance. 11/86. FROM 1983 THROUGH 1985, by Patrick I. Mahoney, Alice Measuring the Foreign-Exchange Value of the Dollar. 6/87. P. White, Paul F. O'Brien, and Mary M. McLaughlin. Changes in Consumer Installment Debt: Evidence from the 1983 January 1987. 30 pp. and 1986 Surveys of Consumer Finances. 10/87. 152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A Home Equity Lines of Credit. 6/88. REVIEW OF THE LITERATURE ,by Mark J. Warshawsky. Mutual Recognition: Integration of the Financial Sector in the April 1987. 18 pp. European Community. 9/89. 153. STOCK MARKET VOLATILITY, by Carolyn D. Davis and The Activities of Japanese Banks in the United Kingdom and in Alice P. White. September 1987. 14 pp. the United States, 1980-88. 2/90. 154. THE EFFECTS ON CONSUMERS AND CREDITORS OF Industrial Production: 1989 Developments and Historical PROPOSED CEILINGS ON CREDIT CARD INTEREST RATES, Revision. 4/90. by Glenn B. Canner and James T. Fergus. October 1987. Recent Developments in Industrial Capacity and Utilization. 26 pp. 6/90. 155. THE FUNDING OF PRIVATE PENSION PLANS, by Mark J. Developments Affecting the Profitability of Commercial Banks. Warshawsky. November 1987. 25 pp. 7/90. 156. INTERNATIONAL TRENDS FOR U.S. BANKS AND BANKING Recent Developments in Corporate Finance. 8/90. MARKETS, by James V. Houpt. May 1988. 47 pp. U.S. Exchange Rate Policy: Bretton Woods to Present. 11/90. 157. M2 PER UNIT OF POTENTIAL GNP AS AN ANCHOR FOR The Transmission Channels of Monetary Policy: How Have THE PRICE LEVEL, by Jeffrey J. Hallman, Richard D. They Changed? 12/90. Porter, and David H. Small. April 1989. 28 pp. U.S. International Transactions in 1990. 5/91. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A90 Index to Statistical Tables References are to pages A3-A83 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Demand deposits—Continued Agricultural loans, commercial banks, 19,20 Ownership by individuals, partnerships, and corporations, 21 Assets and liabilities (See also Foreigners) Turnover, 15 Banks, by classes, 18-20, 72-77 Depository institutions Domestic finance companies, 35 Reserve requirements, 8 Federal Reserve Banks, 10 Reserves and related items, 3, 4, 5,12 Financial institutions, 25 Deposits (See also specific types) Foreign banks, U.S. branches and agencies, 21 Banks, by classes, 3,18-20, 21, 73, 75, 77 Automobiles Federal Reserve Banks, 4, 10 Consumer installment credit, 38, 39 Turnover, 15 Production, 48, 49 Discount rates at Reserve Banks and at foreign central banks and foreign countries (See Interest rates) Discounts and advances by Reserve Banks (See Loans) BANKERS acceptances, 9, 22, 23 Dividends, corporate, 34 Bankers balances, 18-20, 72, 74, 76. (See also Foreigners) Bonds (See also U.S. government securities) New issues, 33 EMPLOYMENT, 46 Rates, 23 Eurodollars, 23 Branch banks, 21, 56 Business activity, nonfinancial, 45 Business expenditures on new plant and equipment, 34 FARM mortgage loans, 37 Business loans (See Commercial and industrial loans) Federal agency obligations, 4, 9,10, 11, 30, 31 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, 78-81 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, 78-81 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, 81 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 Terms of lending, 78-81 Federal Reserve notes, 10 Time and savings deposits, 3 Federal Reserve System Commercial paper, 22, 23, 35 Balance sheet for priced services, 82 Condition statements (See Assets and liabilities) Condition statement for priced services, 83 Construction, 45, 50 Federal Savings and Loan Insurance Corporation insured Consumer installment credit, 38, 39 institutions, 25 Consumer prices, 45, 47 Federally sponsored credit agencies, 32 Consumption expenditures, 52, 53 Finance companies Corporations Assets and liabilities, 35 Nonfinancial, assets and liabilities, 34 Business credit, 35 Profits and their distribution, 34 Loans, 38, 39 Security issues, 33, 66 Paper, 22, 23 Cost of living (See Consumer prices) Financial institutions Credit unions, 28, 38. (See also Thrift institutions) Loans to, 19,20,21 Currency and coin, 18, 72, 74, 76 Selected assets and liabilities, 25 Currency in circulation, 4, 13 Float, 4, 83 Customer credit, stock market, 24 Flow of funds, 40,42, 43, 44 Foreign banks, assets and liabilities of U.S. branches and DEBITS to deposit accounts, 14 agencies, 21 Debt (See specific types of debt or securities) Foreign currency operations, 10 Demand deposits Foreign deposits in U.S. banks, 4, 10, 19, 20 Banks, by classes, 18-21, 73, 75, 77 Foreign exchange rates, 69 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A91 Foreign trade, 55 Production, 45, 48 Foreigners Profits, corporate, 34 Claims on, 56, 58, 61, 62, 63, 65 REAL estate loans Liabilities to, 20, 55, 56, 58, 59, 64, 66, 67 Banks, by classes, 16, 19, 20, 37, 74 Financial institutions, 25 GOLD Terms, yields, and activity, 36 Certificate account, 10 Type of holder and property mortgaged, 37 Stock, 4, 55 Repurchase agreements, 6, 17,19, 20, 21 Government National Mortgage Association, 32, 36, 37 Reserve requirements, 8 Reserves Gross national product, 52 Commercial banks, 18 Depository institutions, 3, 4, 5, 12 HOUSING, new and existing units, 50 Federal Reserve Banks, 10 U.S. reserve assets, 55 INCOME and expenses, Federal Reserve System, 82-83 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 Commercial banks, 78-81 Savings and loan associations, 25, 37, 38, 40. (See also Thrift Consumer installment credit, 39 institutions) Federal Reserve Banks, 7 Savings banks, 25, 37, 38 Foreign central banks and foreign countries, 68 Savings deposits (See Time and savings deposits) Money and capital markets, 23 Securities (See also specific types) Mortgages, 36 Federal and federally sponsored credit agencies, 32 Prime rate, 22 Foreign transactions, 66 International capital transactions of United States, 54-68 New issues, 33 International organizations, 58, 59, 61, 64, 65 Prices, 24 Inventories, 52 Special drawing rights, 4, 10, 54, 55 Investment companies, issues and assets, 34 State and local governments Investments (See also specific types) Deposits, 19, 20 Banks, by classes, 18, 19, 20, 21, 25 Holdings of U.S. government securities, 29 Commercial banks, 3,16,18-20, 37, 72 New security issues, 33 Federal Reserve Banks, 10, 11 Ownership of securities issued by, 19, 20, 25 Financial institutions, 25, 37 Rates on securities, 23 Stock market, selected statistics, 24 LABOR force, 46 Stocks (See also Securities) Life insurance companies (See Insurance companies) New issues, 33 Loans (See also specific types) Prices, 24 Banks, by classes, 18-20 Commercial banks, 3, 16, 18-20, 72, 74, 76 Student Loan Marketing Association, 32 Federal Reserve Banks, 4, 5, 7, 10, 11 Federal Reserve System, 82-83 TAX receipts, federal, 28 Financial institutions, 25, 37 Thrift institutions, 3. (See also Credit unions and Savings and Insured or guaranteed by United States, 36, 37 loan associations) Time and savings deposits, 3,13, 17, 18, 19, 20, 21, 73, 75, 77 MANUFACTURING Trade, foreign, 55 Capacity utilization, 47 Treasury cash, Treasury currency, 4 Production, 47,49 Treasury deposits, 4, 10, 27 Margin requirements, 24 Treasury operating balance, 27 Member banks (See also Depository institutions) UNEMPLOYMENT, 46 Federal funds and repurchase agreements, 6 U.S. government balances Reserve requirements, 8 Commercial bank holdings, 18, 19,20 Mining production, 49 Treasury deposits at Reserve Banks, 4, 10, 27 Mobile homes shipped, 50 U.S. government securities Monetary and credit aggregates, 3, 12 Bank holdings, 18-20, 21, 29 Money and capital market rates, 23 Dealer transactions, positions, and financing, 31 Money stock measures and components, 3,13 Federal Reserve Bank holdings, 4,10, 11, 29 Mortgages (See Real estate loans) Foreign and international holdings and transactions, 10, 29, Mutual funds, 34 67 Mutual savings banks (See Thrift institutions) Open market transactions, 9 Outstanding, by type and holder, 25, 29 NATIONAL defense outlays, 28 Rates, 23 National income, 52 U.S. international transactions, 54-68 Utilities, production, 49 OPEN market transactions, 9 VETERANS Administration, 36, 37 PERSONAL income, 53 Prices Consumer and producer, 45, 51 WEEKLY reporting banks, 19-21 Stock market, 24 Wholesale (producer) prices, 45, 51 Prime rate, 22 Producer prices, 45, 51 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A92 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* 02106 Richard N. Cooper Richard F. Syron Jerome H. Grossman Cathy E. Minehan 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 JohnR. 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 III Nashville 37203 Shirley A. Zeitlin Melvyn K. Purcell New Orleans 70161 Jo Ann Slay don 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 L. Dickson Flake 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. Tony J. Salvaggio El Paso 79999 W. Thomas Beard, HI Sammie C. Clay Houston 77252 Gilbert D. Gaedcke, Jr. Robert Smith, III1 San Antonio 78295 Roger R. Hemminghaus Thomas H. Robertson SAN FRANCISCO 94120 Robert F. Erburu Robert T. Parry Carolyn S. Chambers Carl E. Powell Los Angeles 90051 Yvonne B. Burke Thomas C. Warren2 Portland 97208 William A. Hilliard Leslie R. Watters Salt Lake City 84125 D.N. Rose Andrea P. Wolcott Seattle 98124 Judith Runstad 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. Digitized for FR2A. SEExeRcu tive Vice President. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A93 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

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

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