Federal Reserve Bulletin, 1991-10

VOLUME 77 • NUMBER 10 • OCTOBER 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 769 PROGRESS TOWARD A EUROPEAN D.C., and Independence Bank, Encino, Cali- MONETARY UNION fornia, before the Subcommittee on Terrorism, Narcotics and International Communications Negotiations are currently under way among of the Senate Committee on Foreign Relations, member states of the European Community to August 1, 1991. define the legal provisions necessary to establish economic and monetary union (EMU) and, in parallel, a political union. This article 799 ANNOUNCEMENTS reviews the progress to date toward EMU. It Extension of comment period on proposed provides historical background to the current definition of highly leveraged transactions. move, presents the progress of the negotiations, and outlines the likely prospects and conse- Change in Board staff. quences of EMU for international relations and for the United States. 800 RECORD OF POLICY ACTIONS OF THE FEDERAL OPEN MARKET COMMITTEE 784 TREASURY AND FEDERAL RESERVE At its meeting on July 2-3,1991, the Committee FOREIGN EXCHANGE OPERATIONS reaffirmed the ranges that it had set in February Over the three-month period from May through for growth in the monetary and debt aggregates July, the dollar rose about 2 percent against the in 1991, and it established on a provisional mark, about 1 percent against the yen, and just basis ranges for growth in those measures in under 1 percent on a trade-weighted basis. 1992. The ranges for this year included growth of 2 Vi to 6V2 percent for M2,1 to 5 percent for 789 INDUSTRIAL PRODUCTION AND M3, and a monitoring range of 4Vi to 8V2 per- CAPACITY UTILIZATION cent for total domestic nonfinancial debt for the period from the fourth quarter of 1990 to the Industrial production rose 0.5 percent in July, fourth quarter of 1991. On a tentative basis, the the fourth consecutive month of significant Committee voted to extend each of these ranges increases. Total industrial capacity utilization to 1992, measured from the fourth quarter of increased 0.2 percentage point in July to 1991 to the fourth quarter of 1992. 79.7 percent, 1.3 percentage points above its For the intermeeting period ahead, the trough in March. Committee adopted a directive that called for maintaining the existing degree of pressure on 791 STATEMENT TO THE CONGRESS reserve positions and that did not include a J. Virgil Mattingly, Jr., General Counsel, and presumption about the likely direction of any William Taylor, Staff Director, Division of intermeeting adjustments in policy. Accord- Banking Supervision and Regulation, Board of ingly, the Committee decided that somewhat Governors, describe recent developments in greater reserve restraint or somewhat lesser the case of Bank of Credit and Commerce reserve restraint might be acceptable during the International, S. A. and its affiliates, including period ahead depending on progress toward a summary of events leading to the seizure of price stability, trends in economic activity, the the bank's assets and the effect of BCCI's behavior of the monetary aggregates, and seizure on two U.S. banking organizations, developments in foreign exchange and domestic financial markets. The reserve conditions First American Bankshares of Washington, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

contemplated at this meeting were expected to A71 GUIDE TO TABULAR PRESENTATION, be consistent with some increase in the growth STATISTICAL RELEASES, AND SPECIAL of M2 and M3 to annual rates of around TABLES 5V2 percent and 3 percent respectively over the three-month period from June through A76 BOARD OF GOVERNORS AND STAFF September. A78 FEDERAL OPEN MARKET COMMITTEE AND 809 LEGAL DEVELOPMENTS STAFF; ADVISORY COUNCILS Various bank holding company, bank service A80 FEDERAL RESERVE BOARD PUBLICATIONS corporation, and bank merger orders; and pending cases. A82 INDEX TO STATISTICAL TABLES 844 MEMBERSHIP OF THE BOARD OF A84 FEDERAL RESERVE BANKS, BRANCHES, GOVERNORS OF THE FEDERAL RESERVE AND OFFICES SYSTEM, 1913-91 List of appointive and ex officio members. A85 MAP OF THE FEDERAL RESERVE SYSTEM AI FINANCIAL AND BUSINESS STATISTICS These tables reflect data available as of August 28,1991. A3 Domestic Financial Statistics A46 Domestic Nonfinancial Statistics A55 International Statistics Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Progress toward a European Monetary Union Herve Carre, of the staff of the Commission of presents an assessment of the likely prospects for the European Communities and currently visiting and consequences of EMU. the Board, and Karen H. Johnson, of the Board's Division of International Finance, prepared this article. THE SEARCH FOR A MONETARY IDENTITY The Treaty of Rome, which established the Eu- Economic and monetary union has been a long- ropean Economic Community in 1957 to bring standing ambition of the European Community. about a closer union of European countries, has The Heads of State or Government of the mem- no provisions for monetary arrangements. This ber states of the European Community first put it omission is largely the result of the international forward as an objective in 1969. Yet only re- context at the time. The currencies of the six cently has the commitment to economic and initial member states were part of the internamonetary union (EMU) been reconfirmed and a tional monetary system of fixed exchange rates strategy for implementing it been defined. In the negotiated at Bretton Woods. In the years after past three years, important steps have been the signing of the Treaty of Rome, the main taken, and negotiations are under way for achievements of the EC were the completion of amending the treaty establishing the European the customs union and the establishment of the Community (EC) to bring about EMU. The out- first common policy—the Common Agricultural come of these negotiations is crucial. If signifi- Policy. These steps led to a growing interdepencant progress is made, in a few years the Euro- dence of the economies of the member states and pean continent will be very different. While the to an increasing awareness that national policies change would affect European countries primar- were becoming less autonomous. Since the inily, it would have an impact on international ception of the EC, the progress achieved in economic and monetary relations as well. European integration and the changes in the This article reviews the progress to date international environment have led to attempts to toward European economic and monetary union. establish a European monetary identity, a con- The first section provides historical background cept that finds its fullest expression in the term to the current move, from the signing of the "economic and monetary union." Treaty of Rome (1957) to the 1988 meeting in Hanover of the European Council, which con- The Werner Plan sists of the Heads of State or Government of the EC member states. In Hanover, the European In 1969, acknowledging that closer coordination Council gave new impetus to the movement and even harmonization of economic and monetoward EMU. The second section outlines the tary policies were necessary, the Heads of State general design for EMU that was endorsed by or Government expressed their wish to see the eleven of the twelve EC member states before Community develop into an economic and monthe opening of the present negotiations and that etary union through the implementation of a is based on the report issued in 1989 by a group phased plan. A group of experts chaired by of experts chaired by Jacques Delors, currently Pierre Werner, then Prime Minister of Luxempresident of the EC Commission. The next sec- bourg, prepared the plan, which was endorsed in tion addresses the main questions under discus- 1971. Accordingly, procedures for strengthening sion that remain to be settled, and the last section the coordination of economic policies were intro- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

770 Federal Reserve Bulletin • October 1991 1. The Main Features of the European Monetary System The ECU. The ECU is a composite currency made up The Exchange Rate and Intervention Mechanism. of fixed amounts of all member states' currencies, Central rates in ECUs are set for the currencies of those which are weighted to take account of each country's countries participating in the exchange rate mechanism gross domestic product and importance in intra- (ERM), and they are used to establish a grid of bilateral Community trade. The composition of the ECU is central rates. Fluctuation margins, established around revised every five years. The current amounts of the bilateral central rates (usually 2.25 percent), national currency, the sum of which is defined to be one determine the limits or intervention points. When a ECU, are the following: currency reaches a limit, the two central banks •I concerned must intervene in the market to ensure that • Belgian franc the limit is not exceeded. Currently, all the EC countries Danish krone .1976 except Portugal and Greece participate in the ERM. German mark .6242 Changes in the central rates are always possible, but Greek drachma 1.440 Spanish peseta 6.885 the decision can never be a unilateral one. Realignment French franc 1.332 by common accord is a fundamental EMS rule; it Irish pound .008552 constitutes a guarantee against competitive devaluation Italian lira 151.8 and represents a commitment by all the participants to Luxembourg franc .130 Dutch guilder .2198 the parity grid. Portuguese escudo 1.393 Pound sterling .08784 The Credit Mechanisms. A member state can obtain credit through three mechanisms. Very-short-term The value of one ECU in terms of any currency is equal financing is available in unlimited amounts to finance to the sum of these amounts expressed in that currency. interventions at the limits. A system of short-term In the EMS, the ECU's main functions are as monetary support among the member countries is numeraire for setting central rates in the exchange rate designed to meet financing needs stemming from mechanism, as the unit of account for operations under temporary deficits in the balance of payments. Mediumthe intervention and the credit mechanisms, and as a term financial assistance is available in the form of reserve instrument and means of settlement among loans to member states that are experiencing or are EMS central banks. For this purpose, the European seriously threatened by difficulties in their balance of Monetary Cooperation Fund provides an allocation of payments. A member state may avail itself of all these ECUs against the deposit of 20 percent of the gold and facilities in turn. Their combined availability increases dollar reserves held by the participating central banks. the credibility of the EMS. duced; an agreement was reached on narrowing the 1970s did the Community definitely estabmargins of fluctuation of the Community cur- lish the base for more lasting monetary integrarencies (the "snake"); and the European Mon- tion by setting up the European Monetary Sysetary Cooperation Fund (EMCF) was estab- tem. lished as the intended forerunner of a Community system of central banks. But the movement soon ran out of steam. The new The European Monetary System coordination procedures became primarily a matter of form, the snake rapidly lost its Com- A system of stable but adjustable exchange rates, munity character when many countries chose to the European Monetary System (EMS), was withdraw their currencies, and the EMCF never established in 1979 to create a zone of monetary assumed more than accounting functions. The stability in Europe. Based on an agreement process of monetary integration could not pro- among central banks, the EMS has three main ceed because countries could not agree on features: the ECU, which is at the center of the policies in response to the shocks of the period: system; an exchange rate and intervention mechthe oil crisis and the collapse of the Bretton anism, designed to ensure the stability of Com- Woods monetary system. Not until the end of munity currencies; and credit mechanisms that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Progress toward a European Monetary Union 771 organize financial support among the participat- However, the prospect of completion by the end ing countries (see box l).1 of 1992 of the single market soon appeared to be In the twelve years of its existence, the EMS a challenge for the current economic and monehas achieved its main objective of lowering rates tary arrangements. A unified financial market in of inflation.2 As a result, it has helped to reduce which capital flows, including speculative flows, the variability of real exchange rates among the were unimpeded might make keeping exchange participating currencies and to narrow interest rates fixed, as required by the EMS, impossible. rate differentials. Closer coordination of the eco- Moreover, even when persons and goods can nomic policies implemented by the EC member move freely within a single market, exchange states has resulted in observed convergence of rates will remain as barriers to trade. For these their economic performances. By providing a reasons, a single market would benefit from basis for multilateral surveillance within the having a single currency. According to a 1989 Community, the EMS has contributed to this business survey conducted by Ernst and Young improved policy coordination. However, infla- for the EC Commission, opinions on the prostion rates have also declined in many industrial pects for the business climate become much countries that are not in the EMS, and the extent more positive when a single currency completo which the EMS has contributed to lowering ments the single market. EMU thus appears to be inflation has been widely debated.3 the economic and monetary backbone for the success of the Communitywide internal market. The Single European Act The march toward EMU resumed in 1988 when, at its meeting in Hanover, the European The perceived success of the EMS has contrib- Council entrusted to a committee chaired by uted to further progress in European integration. Delors the task of studying economic and mone- The Single European Act, which was signed in tary union and preparing concrete stages leading 1986, was the first major revision of the Treaty of toward this goal. The committee, which included Rome. It reaffirmed old objectives and estab- representatives from the central banks of the lished additional ones, such as the achievement member countries plus several experts, preof the single market, the strengthening of eco- sented its report in April 1989. nomic and social cohesion, and the gradual realization of EMU. It also set the end of 1992 as a deadline for completion of the single market and proposed new methods of operation, such as THE GENERAL DESIGN OF EMU extending the scope for the Council to vote by qualified majority rather than requiring unanim- The Delors Committee report is a unanimously ity and introducing systematic arrangements for agreed-upon statement of the goal of economic and mutual recognition by each member state of monetary union and the means for achieving it. other members' standards and regulations.4 The Goal 1. Under the current arrangements, the ECU or European currency unit, is a "basket" or composite currency. In the final stage of EMU, plans call for the ECU to cease to be a The Delors Committee report proposes a framebasket currency and to become a currency in its own right. work for EMU and identifies the essential ele- 2. Susan Collins, "Inflation and the European Monetary ments of such a union. Three conditions used to System," in Francesco Giavazzi, Stefano Micossi, and Marcus Miller, eds., The European Monetary System (New define monetary union are the following: York: Cambridge University Press, 1988), pp. 112-39. 3. Charles Goodhart, "Economists' Perspectives on the 1. The total and irreversible convertibility of EMS," Journal of Monetary Economics, vol. 26 (December 1990), pp. 471-87. currencies 4. The Council, which consists of minister representatives 2. The complete liberalization of capital transof the EC member governments, enacts legislation proposed actions and full integration of banking and finanby the Commission. Participants at Council meetings change on the basis of the subject being considered. cial markets Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

772 Federal Reserve Bulletin • October 1991 3. The elimination of margins of fluctuation ever, some harmonization of a basic set of reguand the irrevocable locking of exchange rate lations and procedures—for example, for tax parities. rates and financial services—is necessary. Completion of the single market would lead to a lower This definition, which originated in the Werner degree of market integration in the EC than that plan, has important implications for monetary in other existing federations. Capital mobility policy. As soon as exchange rates are irrevoca- across countries can be expected to be almost bly locked and perceived to be so, with perfect perfect; but the integration of the markets for capital mobility, there can be only one interest goods and nonfinancial services can be expected rate for assets of the same maturity and risk for to increase only slowly, and labor mobility is all participants, whatever the currency denomi- bound to remain limited because of cultural and nation of the assets. Thus, the irrevocable fixing linguistic barriers. In addition, because the Comof exchange rates implies the same structure of munity budget amounts to only some 2 percent of interest rates across the union. But exchange total EC government expenditures, its distriburates will be considered irrevocably fixed only if tion and its stabilization functions cannot be all monetary authorities within the Community compared with those of central government budguarantee without limit the conversion of any gets that represent between 45 percent and 65 currency of the system into another at the fixed percent of total public expenditures in such fedrate. Such a guarantee requires giving the re- eral states as the United States, Canada, and sponsibility for monetary policy to a single insti- Germany. If asymmetric shocks affected real tution, since without this provision any money economic conditions in the EC member states, created by a national monetary authority would other adjustment mechanisms would have to spill over throughout the union; the other mem- function as stabilizers in the place of a central EC ber states would be unable to shelter themselves budget; if aggregate fiscal policy measures were from its consequences. Thus, for practical pur- required, most of them would have to be impleposes monetary union implies a single monetary mented through coordination of economic polipolicy. cies among member states. The definition of economic union is less clear- Stages of EMU cut because such union involves a wide array of measures relating to different fields. The Delors The Delors Committee report specifies a method Committee report describes economic union in and a sequence of steps for implementing moveterms of four basic elements: ment to EMU. The report proposes three stages: 1. A single market within which persons, 1. Stage one involves the completion of the goods, services, and capital move freely single market, the strengthening of economic and 2. A rigorous competition policy and other monetary policy coordination, and the negotiameasures aimed at strengthening market mecha- tion and ratification of the treaty amendments nisms needed to establish EMU. In particular, the 3. Common policies aimed at structural change Committee of Central Bank Governors would and regional development have more authority and a higher profile. The 4. A close coordination of economic policies, Committee's policy recommendations to the including binding rules for budgetary policies. Council and to the monetary authorities would be made public. Coordination procedures based on This definition has less sweeping conse- multilateral surveillance would also have to be quences than does the one for monetary union. A reinforced, so that member states would enter single economic policy is not necessary for eco- into reciprocal commitments. nomic union as a single monetary policy is for 2. Stage two, which would include entry into monetary union; and, correspondingly, there is force of the new treaty, would be the transition not the same need for institutional change. How- period for the new institutional arrangement. A Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Progress toward a European Monetary Union 773 European System of Central Banks (ESCB) were met ahead of the deadline, and stage one would be established. The ESCB would design began as scheduled. and test the operational framework for formulating and applying a common monetary policy. Costs and Benefits of EMU On the economic front, medium-term guidelines would need to be drawn up for the main mac- Acceptance of the Delors plan for proceeding to roeconomic variables, and surveillance proce- monetary union was accompanied by efforts of dures would be made more stringent and more the EC authorities and other analysts to estimate efficient. the expected costs and benefits of EMU. Accord- 3. Stage three would start with the irrevocable ing to Robert A. Mundell's seminal contribution fixing of exchange rates and would involve the to the literature on "optimum currency areas," transfer of powers necessary for administering the judgment on the formation of a monetary area economic and monetary union. The European depends on balancing two factors: System of Central Banks would be in charge of the single monetary policy, and a single currency 1. Monetary union, especially with a single would replace the national currencies. On the currency, provides benefits by eliminating transeconomic side, rules and procedures would be- action costs and the uncertainty associated with come binding. exchange rate variability. 2. If labor and capital cannot move freely In defining a method for moving toward EMU, among the regions of the union, adjustment to the report makes several recommendations. No some kinds of economic shocks, without changes timetable is laid down, although the report sug- in the nominal exchange rates of the regions, will gested that stage one should get under way at the lead to unemployment and lost output.5 latest by July 1, 1990, that is, the date of implementing the liberalization of capital movements On this basis, the overall cost-benefit balance according to the single market program. The of EMU may be uncertain because labor mobility report stresses parallelism in the development of in the Community is limited and is bound to economic and monetary integration. Also, the remain limited at least for a time. Direct examireport accepts the idea of flexible arrangements nation of the criteria for an optimum currency for participation. Although accession of all area for the EC member countries suggests that twelve member states to the new treaty is the regional problems are likely. Compared with the preferred option, the proposal allows a degree of U.S. economy, the EC member states show flexibility concerning the date and conditions significantly lower labor mobility; have experiunder which different countries would join vari- enced to a greater degree economic shocks that ous arrangements. Finally, the report states that have affected the constituent regions asymmetrithe realization of EMU must be seen as one cally; and, as a result, have relied far more on process. The decision to embark on stage one adjustment of real exchange rates across reimplies the acceptance of the entire process and, gions.6 hence, the prospect of negotiations on a new The analysis of the costs and benefits of montreaty. Preparatory work for these negotiations etary union has been extended to include other therefore should take place at the same time as considerations. In particular, some analysts have work on launching stage one. argued that the openness and the industrial di- The general approach to EMU set forth in the versification of the economies concerned are Delors Committee report was well received by the European Council. In June 1989, the European Council decided that stage one would start 5. Robert A. Mundell, "A Theory of Optimum Currency on July 1, 1990, and gave instructions to begin Areas," American Economic Review, vol. 51 (September preparatory work for an intergovernmental con- 1961), pp. 657-65. 6. Barry Eichengreen, "Is Europe an Optimum Currency ference, the forum for negotiations on a treaty Area?" Working Paper 3579 (Cambridge, Mass.: National revision. Most of the preconditions for stage one Bureau of Economic Research, 1991). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

774 Federal Reserve Bulletin • October 1991 important criteria that need to be taken into modeled on that set out in the Delors Commitaccount. The larger the volume of interregional tee report. trade, the greater are the cost savings stemming from a monetary union that links the regions.7 The Agreed upon Design of EMU Changes in exchange rates to help sustain economic performance are less critical in a diversi- Using this overall design, negotiators at the infied industrial economy, with more intra-industry tergovernmental conference have addressed the trade, than in a more specialized economy.8 In specific details of EMU. As agreed at Rome, addition, recent developments in the theory of monetary union will be fully realized only with economic growth point to dynamic gains, poten- the adoption of a single currency, a strong and tially much greater than the direct gains associ- stable ECU. A single currency means a single ated with the elimination of transaction costs and monetary policy, formulated and implemented more stable exchange rates. These gains would by a new Community institution, the European result from an improvement in the business cli- System of Central Banks. According to the draft mate that leads to a self-reinforcing cycle of statute for the ESCB, which was prepared by the stronger growth.9 Committee of Central Bank Governors and In 1990, the EC Commission staff published which has been broadly endorsed by the negotiits evaluation of the potential benefits and costs ators, the ESCB will have price stability as its of forming an economic and monetary union. overriding objective; subject to that objective, it On balance, the Commission staff found that will support the general economic policy set at EMU benefits are likely to outweigh the costs the Community level. (see box 2). The ESCB will also have a federal structure, However, the present move toward EMU is but decisionmaking will be centralized. A twoessentially politically driven and is accompa- tier system will be established, consisting of the nied by parallel negotiations aimed at European existing national central banks and a new central Political Union. Since the Delors Committee institution, the European Central Bank (ECB). report was published, EMU has gained fresh The national central banks will form an integral momentum with each European Council meet- part of the System and will have to act in ing. At the Madrid meeting in June 1989, the accordance with the instructions and guidelines European Council set the date for the start of of the ECB. The function of the ECB will be to stage one; at the Strasbourg and Dublin meet- ensure the implementation of the tasks of the ings, in December 1989 and June 1990 respec- System, either through its own activities or tively, it adopted a timetable for the Intergov- through the activities of the national central ernmental Conference and for ratification of its banks. The decisionmaking bodies of the whole conclusions; and at the Rome meeting in Octo- System will be the ECB Council and the Execuber 1990, it set January 1, 1994, as the date for tive Board of the ECB. The ECB Council will be the beginning of stage two, with agreement also responsible for formulating the Community's reached among eleven of the twelve member monetary policy; it will be composed of the states on an overall design for EMU closely President, the other members of the Executive Board, and the governors of the national central banks. Each member of the ECB Council will 7. Ronald I. McKinnon, "Optimum Currency Areas," have a vote; this principle of "one person, one American Economic Review, vol. 53 (September 1963), pp. vote" reflects the desire to orient the decision- 717-25. making process toward the requirements of the 8. Peter Kenen, "The Theory of Optimum Currency Areas: An Eclectic View," in Robert A. Mundell and Alexander Community as a whole rather than toward re- Swoboda, eds., Monetary Problems in the International gional concerns. The Executive Board will be in Economy (Chicago: University of Chicago Press, 1969). charge of implementing monetary policy and will 9. R. Baldwin, "The Growth Effects of 1992," Economic Policy (October 1989), pp. 248-81; R. Baldwin and R. Lyons, be composed of the President and a few other "External Economies and European Integration: The Poten- members, all selected from among persons of tial for Self-fulfilling Expectations," in European Economy: recognized standing and professional experience. The Economics of EMU, special issue. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Progress toward a European Monetary Union 775 2. The Main Benefits and Costs of EMU The Commission of the European Communities re- premiums are eliminated. These benefits will very cently completed an analysis of the main benefits and probably outweigh the loss of seigniorage revenue to be costs of forming EMU. The following statement, which experienced by some countries. is quoted from that study, groups the benefits and costs under five headings:1 (iv) Adjusting to Economic Shocks. The main potential cost of EMU is that represented by the loss of (i) Efficiency and Growth. Elimination of exchange rate monetary and exchange rate policy as an instrument of uncertainty and transaction costs, and further refinements economic adjustment at the national level. This loss to the single market are sure to yield gains in efficiency. should not be exaggerated since exchange rate changes Through improving the risk-adjusted rate of return on by the Community in relation to the rest of the world capital and the business climate more generally there are will remain possible, whereas within the EMS the good chances that a credible commitment to achieving nominal exchange rate instrument is already largely EMU in the not-too-distant future will help further abandoned, and EMU will reduce the incidence of strengthen the trend of investment and growth. country-specific shocks. Relative real labour costs will still be able to change; budgetary policies at national (ii) Price Stability. This is a generally accepted objec- and Community levels will also absorb shocks and aid tive, and beneficial economically in its own right. The adjustment, and the external current account constraint problem is that of attaining price stability at least cost, and will disappear. then maintaining it. The Community has the opportunity Moreover, model simulations suggest that with EMU, of being able to build its monetary union on the basis of the compared to other regimes, the Community would reputation for monetary stability of its least inflationary have been able to absorb the major economic shocks of Member States. Given the paramount importance of the last two decades with less disturbance in terms of the credibility and expectations in winning the continuous rate of inflation and, to some extent also, the level of fight against inflation at least cost, this is a great advantage. real activity. This is of renewed relevance, given that the Gulf crisis of summer 1990 once again subjects the (iii) Public Finance. A new framework of incentives Community to a potentially damaging economic shock. and constraints will condition national budgetary policies, for which the key-words will be autonomy (to respond to (v) The International System. With the ECU becomcountry-specific problems), discipline (to avoid excessive ing a major international currency, there will be deficits) and coordination (to assure an appropriate overall advantages for the Community as banks and enterprises policy-mix in the Community). EMU will also bring conduct more of their international business in their valuable gains for many countries' national budgets through own currency; moreover the monetary authorities will reductions in interest rates, as inflation and exchange risk be able to economize in external reserves and achieve some international seigniorage gains. EMU will also mean that the Community will be better placed, through 1. Commission of the European Communities, "One market, one money: An evaluation of the potential benefits and costs of forming an its unity, to secure its interests in international coordieconomic and monetary union," Study of the Directorate-General for nation processes and negotiate for a balanced multipolar Economic and Financial Affairs, European Economy (October 1990), p. 11. system. The draft statute also mandates that the tional central banks, and the members of their ESCB will be independent. Empirical research decisionmaking bodies will be independent has established a strong link between the inde- of instructions from political authorities or pendence of a central bank and its performance any other bodies; national legislation will have in terms of price stability.10 There are four to be changed in countries where the central major elements of this independence. First, bank is not currently independent to satisfy institutional independence: The ECB, the na- this condition. Second, operational independence: The System will have full availability of the necessary instruments of monetary pol- 10. A. Alesina, "Bolitics and Business Cycles in Industrial icy. Third, personal independence: The mem- Democracies," Economic Policy (August 1989), pp. 57-89. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

776 Federal Reserve Bulletin • October 1991 bers of the decisionmaking bodies will be ap- ECB policy decisions in contrast to the FOMC, pointed for long terms of office, and the on which only five of the twelve presidents vote appointments will be irrevocable. Fourth, fi- at any time. As a result, the ECB procedure in nancial independence: The System will enjoy giving more weight to the regional representafinancial autonomy. tives than does that of the FOMC resembles Finally, the statute calls for the ESCB to be more closely Bundesbank practice. democratically accountable. The System will be established by a treaty, which will have to be Accountability. No provision currently exists in approved by member states and ratified by na- the Federal Reserve Act for the participation of tional parliaments. The treaty will clearly delin- representatives of the Administration in the delibeate the tasks of the System and the responsibil- erations of the governing body. This is a distincities of the decisionmaking bodies. The President tive feature taken from the Bundesbank law. and the other members of the Executive Board will be appointed by the political authorities (the Within EMU, economic policies, in contrast European Council) after consultation with the to monetary policy, would remain largely de- European Parliament. The President of the ECB centralized. However, economic policies of the will be responsible for reporting regularly on member states will need to be consistent across monetary policy and explaining it to the other countries and with Community monetary polinstitutions, including the European Parliament. icy. A large consensus has formed about the Furthermore, to ensure transparency and con- framework for coordination. Multiyear guidesistency, the President of the Council and a lines, defined at the Community level, would member of the Commission will have the right to provide the point of reference for multilateral participate—but not to vote—in the meetings of surveillance. The surveillance exercises would the ECB Council. be designed to detect at an early stage any signs that member states are diverging from sound These features are drawn from two existing economic policies and to induce necessary cormodels, the U.S. Federal Reserve System and rections. Most member states also agree with the German Bundesbank. The ESCB differs from the Commission that a scheme for special finanthe Federal Reserve System and resembles the cial support should be established; such a Bundesbank in the following provisions: scheme would be highly conditional and would be activated only when one member state or Objective. The proposed ESCB will have a several states were hit by major economic probstatutory mandate to aim at an overriding ob- lems. These instruments are aimed at achieving jective—price stability. Other economic objec- the high degree of convergence of economic tives will clearly have a subordinate character. performance that a monetary union implies. In The Federal Reserve currently has no such this respect, fiscal policies deserve particular statutory mandate; the Bundesbank does. attention because increasing fiscal imbalances could make achieving the goal of price stability Decisionmaking Process. The design of the more difficult, if not impossible. Hence, all ECB Council is close to that of the Federal Open twelve member states agree on the need for two Market Committee (FOMC) of the Federal Re- binding rules to be included in the treaty: no serve System as the governors of the national financing of public deficits by credits from the central banks plus the members of the Executive ESCB or preferential market access for the Board sit on the ECB Council whereas the Dis- public authorities with a view to the placing of trict Bank presidents and members of the Board public debt; and no automatic bailing out of a compose the FOMC. The functions of the ECB member state in financial difficulties by the Council—decisions relating to monetary targets, Community or by the other member states. key interest rates, and the supply of reserves— The member states also agree that excessive will be similar to those of the FOMC. However, budget deficits that are liable to endanger the all of the national bank governors vote on all monetary stability of the union should be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Progress toward a European Monetary Union 12 avoided. This principle will be laid down in the bility.12 Furthermore, the result of the scheme is treaty, but the arrangements for applying it are uncertain; a single currency is presented as one still under discussion. possible culmination of a long and uncertain process essentially driven by market forces. Thus, the plan is also opposed by those who favor the single THE REMAINING QUESTIONS currency. On the basis of this broad consensus, the Inter- The Hard Basket ECU. This alternative allows governmental Conference opened in December the ECU to retain its composite nature until the 1990. Since then, negotiations have been under locking of exchange rates. At each realignment, way to settle the remaining open questions. Four however, the basket would be modified so that the issues of particular importance have not yet been ECU could not lose value against any of the clearly resolved: the role of the ECU, the tran- System's currencies. Presented as a compromise sition, exchange rate policy, and the necessary solution, this proposal has given rise to some fiscal discipline. objections. First, it overturns the rules under which the present System operates. Because each The ECU realignment would lead to a new composition of the ECU, any strain in the EMS would lead At the European Council in Rome, eleven mem- operators to expect a modification of the basket, ber states agreed that "the Community will have thus increasing the risks involved in the use of the a single currency—a strong and stable ECU— ECU. Second, this scheme would eventually lead which will be an expression of its identity and to a parallel currency. Because of the exchange unity." However, this agreement leaves open the rate guarantee conferred on the ECU, its mediumquestion of how to transform the present ECU, a and long-term interest rates would differ from the composite currency, into the strong and stable theoretical rates derived from the interest rates of currency of the union. So far, three approaches the component currencies. As a result, the arbihave been proposed. trage of banking operators would be greatly complicated, and the ECU would eventually have to The Hard ECU. This plan, proposed by the be managed by an institution. British, calls for a parallel currency that would compete with national currencies and be managed A Comprehensive Policy of Strengthening the according to its own criteria. This idea is a variant of ECU. This plan seeks to increase the use of the the competing currencies scheme presented by the present ECU and includes a proposal to freeze U.K. government in November 1989 as an alterna- the composition of the ECU, that is, to fix the tive, market-based strategy for the design of mone- amounts of the component currencies. The tary arrangements in Europe—a plan that did not freeze would allow the relative weight of the find support from the other eleven member coun- component currencies to evolve over time: The tries.11 Because the hard ECU would be a parallel weights of the appreciating currencies would rise currency, this plan is strongly opposed by those while the weights of the depreciating currencies who argue that it would further complicate the would fall. Thus the value of the ECU would already difficult task of coordinating various mone- tend toward that of the strongest currencies in tary policies and would involve an additional source the system. This proposal is the one most faof money creation that could undermine price sta- vored by market operators because not only would it remove the uncertainty that surrounds 11. Guido Carli, "The Evolution towards Economic and 12. Karl Otto Pohl, "The Further Developments of the Monetary Union: A Response to the HM Treasury Paper" EMS," Annex to the Report on Economic and Monetary (paper presented to the Council, December 1989). An edited Union in the European Community (Delors Committee reversion, "Co-ordination, not competition," was published in port) (Luxembourg: Office for Official Publications of the the Financial Times (London), January 17, 1990. European Communities, 1989), pp. 129-56. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

778 Federal Reserve Bulletin • October 1991 the ECU market every five years as the date for The experience of the EMS suggests that neia basket revision approaches, it also would avoid ther of the two extreme positions should be any danger of discontinuity between the present adopted. While the convergence by member ECU and the single currency of the union. countries to low inflation rates is widely acknowledged as the main achievement of the EMS (see the chart), the strains the EMS experienced in the The Transition first years of its existence, when realignments were frequent, also illustrate the difficulties that Stage two, the transitional stage of the Delors can arise when convergence is insufficient. Committee report, was not thoroughly defined. Those, especially the Commission, who advo- The report states that "the fundamental difficulty cate a short transition have advanced further inherent in this transition would lie in the orga- arguments. First, the period ahead involves risks nization of a gradual transfer of decisionmaking of instability, because financial integration will power from national authorities to a Community be achieved before the completion of monetary institution," but it does not propose any detailed union. The integration of financial markets will blueprint for accomplishing this transition. How- facilitate currency substitution and financial moever, the whole idea of a progressive transfer of bility to such an extent that the present degree of responsibilities in the field of monetary policy monetary policy coordination may no longer be was revised. It is now recognized that monetary adequate. Second, EMU will yield its most impolicy is indivisible, and that the decisionmaking portant benefits only during the final stage, power in this area cannot be split. whereas most of the costs will be incurred in the This change in conception had immediate con- preparatory stages of the process. Third, an sequences. The nature of stage two had to be economic case also exists for setting fixed and redefined—either as an extension of stage one or as a forerunner of stage three—and the discus- Consumer price inflation in selected countries sion has focused on the degree of convergence of in the exchange rate mechanism economic performance by the member states that of the European Monetary System, 1979-90 would be required before irrevocably fixing exchange rate parities. Two traditionally conflicting views are relevant to the discussion. At one extreme is the so-called coronation theory, according to which the passage to a higher stage of monetary integration should only ratify (or "crown") the convergence that has already been achieved. The arguments used to support this position differ. Some take the view that given the existing wide differences in levels of economic welfare, premature fixing of exchange rates would lead to political pressures, not only for increased budgetary transfers from richer to poorer regions, but also for easier monetary policy to promote growth. Others argue that an early fixing of exchange rate parities would aggravate regional disparities and impart a deflationary bias to the monetary union. At the other extreme, the so-called monetarist school holds that convergence could always be achieved through adherence to exchange rate commitments, which could therefore be taken without any preceding convergence. 1980 1982 1984 1986 1988 1990 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Progress toward a European Monetary Union 779 credible timetables to foster convergence and Also, a compromise agreement seems to have encourage anticipatory adjustments. Fourth, the been reached on the conditions for participating process of convergence has already advanced in in stage three, according to which no country recent years, and further progress can be ex- could prevent its partners from establishing a pected as a result of the new arrangements single currency if they had met certain converadopted as preparation for stage one. gence criteria; no country that had met those The difficulties of the discussion have been criteria could be excluded; and no country could compounded by the emergence of a third option, be compelled to join. the so-called two-speed Europe, under which an inner core of countries would move rapidly to full Exchange Rate Policy EMU while the remaining countries would join later. Those member states who advocate a long Which institution should have the responsibility transition have strongly criticized this option. for external monetary relations has long been a They fear that the inner core countries could matter for extensive discussions within the memmake decisions that would shape the future of the ber states. There are two opposing schools of Community, and they do not want to be outsid- thought. One side argues that since the exchange ers. As a matter of fact, most of the progress rate is an important instrument of economic made in European unification has been achieved policy, it should be managed by the political through a "multi-speed" process. The EMS is an authorities. Those who take this view underline example of this approach in that eight countries the fact that, after monetary union, the exchange currently participate in the narrow band of the rate policy of the Community will have important exchange rate mechanism (ERM), two countries consequences for other countries and, therefore, have joined only recently and utilize a wider cannot be separated from broader political isband, and two others have not yet joined the sues. The other side holds that, because an ERM. The liberalization of capital movements, exchange rate policy may conflict with a domeswith four countries maintaining restrictions while tic monetary policy geared to price stability, it the other eight have implemented free movement should be the responsibility of the central bank; of capital, provides another example. To a large they consider that all decisions on intervention extent, the drawbacks of this two-speed option should be assigned to the ESCB, because full seem to have been exaggerated during the dis- responsibility in this field is a necessary condicussion. The crux of the matter is to design open tion for the conduct of a monetary policy oriarrangements, that is, arrangements that allow ented toward stability. every member state to participate and that pro- In an attempt to reconcile these conflicting vide for a certain degree of flexibility concerning views, the Commission has suggested a distincthe timing and conditions under which some tion among three levels of decisionmaking, and member states would participate. an allocation of responsibilities for each level: The issue of convergence remains unresolved and calls for a political answer. Building on the 1. At the highest level, policymakers choose consensus reached in Rome last year, negotiators the exchange rate regime and negotiate internarecently agreed that while it is clear that EMU tional monetary agreements. These activities needs a considerable degree of convergence of should clearly be a matter for political authorireal and financial economic conditions in the ties, assisted by the ESCB—as is the case now in member states, the important question may be all countries. how to achieve this degree of convergence. All 2. At the lowest level, interventions are transmember states appear to have decided to adopt, acted in the foreign exchange markets, and the as soon as possible, medium-term adjustment daily management of foreign exchange reserves programs specifically designed to reduce existing occurs. These activities should be a matter for divergences. With this provision, convergence the ESCB. criteria will have to be met before the move to 3. At the intermediate level, policymakers stage three but not before the move to stage two. must decide upon exchange rate and intervention Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

780 Federal Reserve Bulletin • October 1991 policy—decisionmaking that is the core of the the lack of budgetary discipline would then be problem. Acknowledging that the exchange rate felt in the overall market for government paper. is an important element of both monetary policy This is why, in considering the framework for and external economic policy, the Commission EMU, large deficits and debts are a matter of has suggested a structure for organizing the dia- concern for the Community as a whole. Budgetlogue necessary for resolving potential conflicts. ary discipline, defined as the avoidance of an It has proposed that exchange rate policy should unsustainable buildup of public debt, is a vital be defined in a framework of close cooperation condition for the success of EMU. The nature of between the monetary authority and the eco- the rules and procedures that should be ennomic policymakers and should follow some shrined in the Treaty to avoid excessive deficits basic principles, especially that foreign exchange is therefore being extensively discussed. interventions vis-a-vis third currencies should It has been argued that no special provision or not conflict with the overriding objective of mon- quantitative rule should be mentioned in the etary policy. This "cooperative solution" is the Treaty provided that the central bank is granted basis of the present negotiations. complete independence and is fully sheltered from government pressures; any form of financial Budgetary Discipline solidarity among member states is ruled out; and existing regulations, especially prudential rules, Budgetary discipline is a concern for the mone- are modified to correct any bias in favor of tary authorities because fiscal policy and mone- government paper.13 Under these conditions, it is tary policy are interdependent in the long run. If maintained, markets would assess the relative not corrected, protracted deficits leading to un- riskiness of various governments' paper, and a sustainable buildups of outstanding public debt lack of discipline would result in an increased result either in debt monetization or government cost of borrowing. default. In the first case, the monetary authorities The conditions necessary for such a system of give up their objective of price stability in order market discipline to succeed, however, are to rescue the government. In the second, they rather strict and may not be met. First, expecting stick to their objective, but force the government markets to rule out financial solidarity when to repudiate part of its debt. solidarity itself is a basic principle of the Com- Even in less extreme cases, a lack of fiscal munity may not be realistic. Second, the record discipline in one or more member states could of markets in assessing risks is not perfect, as jeopardize the policy stance of the ESCB and illustrated by the 1975 New York City liquidity affect the other member states through three crisis and the Latin American debt crisis. Third, channels. The first would be pressuring the governments may not react adequately to market ESCB to ease its monetary policy stance. Even if signals. Therefore many analysts doubt that marmonetary policy is legally insulated from govern- ket discipline alone would achieve the desired ment pressures, the very fact that a refusal by the results. Thus, negotiators have agreed to supple- ESCB to ease its stance could turn a difficult ment market discipline by a system of rules. As budgetary situation into a genuine financial crisis mentioned in the previous section, the principle acts as a de facto constraint on the central bank. that excessive deficits shall be avoided will be Second, even if the ESCB sticks to its stance, included in the amended treaty. The negotiations persistent budgetary laxity in one country could are currently addressing the question of what affect the other countries because this country criteria should be used in defining excessive eventually would have either to declare default deficits and what ways are appropriate for enor to withdraw from the EMU. The credibility of forcing the principle. It is already agreed that EMU would be weakened. Finally, the ESCB peer pressure, possibly in the form of public could also be subject to pressures to engage in other forms of financial solidarity, such as the purchase of a disproportionate share of bonds 13. Graham Bishop, "Creating an EC Monetary Union with Binding Market Rules," European Business Analysis issued by a specific country; the consequences of (London: Salomon Brothers, February 22, 1990). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Progress toward a European Monetary Union 781 recommendations, would promote discipline. countries would, of course, no longer hold each Whether procedures providing for sanctions others' currencies as reserves. Pooling of the should be developed is still under discussion. reserve balances held by EC countries may permit some economizing on reserves, including dollar reserves. CONSEQUENCES AND PROSPECTS As the currency of a major part of the industrial world, the ECU would come to be widely The impact of EMU will not be limited to just the used in international transactions of all kinds. EC European countries. The consequences of mon- firms, when dealing with firms in other parts of etary union in Europe and the emergence of the the world, may choose to use the ECU for ECU as a major currency are likely to be felt in transaction, accounting, and investment purthe international financial markets and in non- poses to a greater extent than they now use European countries, including the United States. European currencies. Firms from non-EC countries may use the ECU when dealing with EC Implications of EMU for the International firms and, over time, may find it convenient to Financial System use the ECU even in trades that do not involve EC enterprises. Completion of EMU and conversion by some or The further development of integrated finanall of the EC member countries to the use of the cial markets in Europe, as part of the internal ECU are likely to affect the international use of market spawned by the Single European Act, the dollar, the ECU, and other currencies by and the introduction of a single currency should holders of official reserves and by private firms reinforce each other. The switch to a single and individuals. Changes in currency demands currency would facilitate the provision of bankcould, in turn, affect the behavior of exchange ing, investment, and other financial services on a rates. European-wide basis. Conversely, a broadening and deepening of banking and capital markets for International Role of the ECU. The emergence various ECU-denominated financial instruments of the ECU as the single currency for a more would aid the emergence of the ECU as a major integrated EC economy would naturally tend to world currency. make that currency suitable as a reserve asset to be held for official purposes by countries outside Behavior of Exchange Rates. The switch to a the EC. Once the ECU has become established as single European currency would completely elimthe EC currency and various ECU-denominated inate the possibility of exchange rate changes securities are widely traded on international cap- among the European currencies. As a conseital markets, officials in other countries may quence, exchange rate movements within Europe choose to diversify their official reserve holdings would not be able to contribute to the adjustment to include ECU balances. Such a response is of the national economies to developments such particularly likely among the countries of Europe as changes in world oil prices or cyclical swings in that are not EC members, where trade and invest- the economies of trading partners. When such ment links to EC member countries are strong, events occur after EMU, fluctuation of the ECU and among countries that currently peg to an EC against the currencies of the rest of the world, currency or to the present ECU basket, such as such as the dollar or yen, might be greater than we Austria and the non-EC Scandinavian countries. now observe in such instances for a European The move toward the ECU as the single EC currency like the German mark. After EMU, currency would also affect the official reserve more of the adjustment process must occur holdings of the participating countries. Although through changed dollar or yen rates than is curthe precise arrangements that will govern the rently the case. treatment of international reserve assets held by Counteracting the tendency for increased ex- EC countries have not yet been decided, some change rate variability after the move to EMU is consolidation of these balances is likely. The EC the convergence of economic performance Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

782 Federal Reserve Bulletin • October 1991 among the EC countries that we have already tem is likely to be reduced further by the estabseen and that can be expected to continue once lishment of monetary union and a single currency monetary union is established. The success of in Europe. The EC countries and others may the EMS during the past few years in accommo- lower their official holdings of dollar reserves, dating such events as the Gulf War and the and the use of the dollar as a vehicle currency in resulting oil price fluctuations and the recession in international transactions may continue to wane. the United States without realignment among EMS These developments are already occurring to currencies suggests an increasingly similar response some extent as the economies of Japan, Gerwithin the EC economies to such developments. In many, and other major industrial countries conthat case, there may be no need for greater variabil- tinue to grow, and their currencies become more ity of the exchange rate of the ECU in terms of the important in world financial markets. Even if dollar or other currencies than now occurs in order EMU had not been proposed, the dollar would to accommodate adjustment. continue to move toward a somewhat reduced international role relative to the mark, the yen, International Policy Coordination. Creation of and the other major currencies. The tendency for the ESCB and a single monetary policy for the EC the international role of the dollar to shrink, at may have implications for the representation of least in relative terms, as the ECU becomes more EC countries in international institutions such as important is likely to have little impact on U.S. the International Monetary Fund and the Bank for interest rates and on dollar exchange rates. International Settlements, and at meetings such as U.S. firms doing business in Europe would those now conducted by the G-7 finance ministers benefit along with European firms from the reand central bank governors. EC governments duced transaction costs and the elimination of have not yet determined the details of how repre- exchange rate risk that would result from the sentation of their countries might be changed by introduction of a single currency. They would monetary union, but the ESCB would participate benefit as well from any strengthening of ecoin international meetings and the European posi- nomic growth and expansion of trade that EMU tion would be more homogenous. would help to support, provided EC markets A unified European approach to monetary remain genuinely open to international trade. On policy could contribute to the present tendency balance, a stronger, more efficient European for international coordination of economic pol- economy means better markets for U.S. goods. icy, including perhaps exchange rate policy, to If, as intended, EMU contributes to creating a become a tri-polar effort among the United low-inflation, growth-oriented, and open econ- States, Japan, and Europe. Simplification of the omy in Europe, its benefits would be felt in coordination process may facilitate reaching Europe, the United States, and throughout the agreement under some circumstances, although world. the United States could at times find its leadership role challenged as well. 3. Timetable for Economic and Monetary Umon Implications of EMU for the United States Steps toward union Date The role of the dollar in international transactions may be reduced in a relative sense by the emer- Treaty of Rome March 25, 1957 gence of the ECU as a major world currency. Werner Plan October 1970 However, the impact of this development on the EMS March 13, 1979 U.S. economy is likely to be gradual and minimal. Single European Act February 28,1986 On balance, the U.S. economy would benefit from Delors Committee report April 1989 a stronger, less inflationary economic perfor- EMU: stage one July 1, 1990 mance by one of its major trading partners. EMU: stage two January 1,1994 The asymmetric role of the dollar and of the EMU: stage three To be negotiated United States in the international financial sys- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Progress toward a European Monetary Union 783 Outlook for EMU reason to expect that the political momentum that has motivated and accompanied the recent Given their implications, the remaining issues revival of the move to EMU will be lost. The that have been reviewed in the previous section drive toward EMU has already accommodated leave ample scope for further discussion. Pre- important shocks such as German reunification dicting the moment when they will be solved is and the Gulf crisis. In these circumstances, EMU difficult. However, these issues are more politi- might well be a reality in Europe by the end of cal than technical in nature, and there is no this decade. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

784 Treasury and Federal Reserve Foreign Exchange Operations This quarterly report, covering the period May THE DOLLAR FLUCTUATES WITHOUT CLEAR through July 1991, provides information on Treasury DIRECTION IN MAY and System foreign exchange operations. It was presented by Sam Y. Cross, Executive Vice President As the period opened, sentiment toward the dollar in charge of the Foreign Group of the Federal was favorable but market participants appeared Reserve Bank of New York and Manager of Foreign uncertain about whether the dollar could extend the Operations for the System Open Market Account. sharp rise that it had experienced during the Vivek Moorthy was primarily responsible for prepa- preceding two months. The cut in the U.S. discount ration of the report.1 rate of 50 basis points to 5.5 percent on April 30 had been unexpected, and that move generated some The dollar rose significantly in June and early July, downward pressure on dollar rates on May 1. The only to ease back during the next few weeks to end U.S. employment data for April, released on May 3, the May-July reporting period with little net change. were stronger than expected, but, on inspection, Over the three months as a whole, the dollar rose other details of the report revealed areas of continuabout 2 percent against the mark, about 1 percent ing weakness. The dollar traded in a narrow range against the yen, and just under 1 percent on a for the first half of May. trade-weighted basis.2 Then, late in European trading on Friday, Shifting assessments of the strength of the eco- May 17, Sweden's Riksbank announced that it would nomic recovery in the United States were important link the Swedish krona to the European currency in stimulating movements of the dollar exchange unit (ECU), replacing its trade-weighted basket of rate during the period. In addition, political turbu- currencies, in which the dollar carried the largest lence in Eastern Europe helped support the dollar weight, with a basket composed entirely of European against the mark through most of the period, while Community currencies. Within a few hours of the intervention and evidence of international coopera- announcement, the dollar moved up about four tion around the time of the Group of Seven (G-7) pfennigs against the mark, as Swedish and other summit meeting in July was seen in the market as Scandinavian entities rushed to adjust the currency limiting the prospect of a continuing dollar rise. composition of their liabilities to that of the ECU by The U.S. monetary authorities intervened on two purchasing dollars to repay dollar-denominated occasions to signal an interest in resisting the rise of liabilities. With Swedish interest rates relatively the dollar, selling a total of $150 million against high, Swedish entities had borrowed extensively marks as part of their cooperation with other central abroad, partly to finance domestic operations, banks. The U.S. monetary authorities also engaged confident that they were largely shielded from in off-market transactions with foreign monetary exchange rate risk because the Swedish authorities authorities, selling $8,548.5 million equivalent of would limit the movement of the krona's exchange their foreign currency reserves for dollars. rate relative to the trade-weighted basket to only a couple of percentage points. With the change in the krona's peg, the exchange risk these companies would henceforth face on their dollar liabilities was 1. The charts for the report are available on request from Publications Services, Board of Governors of the Federal perceived to be much higher than before, and they Reserve System, mail stop 138, Washington, D.C. 20551. had an incentive to replace dollar-denominated 2. The trade-weighted basis is as measured by the Federal liabilities with those of European currencies more Reserve Board index. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

785 heavily represented in the ECU. With U.S. markets tended to strengthen the dollar. News of Germany's still open after the Swedish announcement, and with first trade deficit since 1981, evidence that inflation the mark relatively widely traded in the U. S. market, was higher than previously anticipated—even before the pressures resulting from the exchange market the imposition of a consumption tax that would raise operations on May 17 were concentrated in dollar- all major price indexes for the upcoming months, mark transactions, resulting in the sharp rise of the and what some saw as the reluctance of the dollar against the mark. Under these circumstances, Bundesbank to raise official interest rates all weighed there was some intervention; the U.S. authorities on the mark. By late June, the dollar had risen well sold $50 million on that Friday. After the weekend, above DM1.80 in intraday trading. with pressures continuing, there was intervention by With respect to the yen, the dollar showed its several foreign central banks. Soon thereafter the greatest strength of the reporting period during the markets settled down, and the dollar traded in a first half of June and broke through the ¥142 level narrow range for the rest of the month. three times. The dollar-yen exchange rate reflected not only the more buoyant outlook for the U.S. economy but also concerns in Japanese financial THE DOLLAR ADVANCES DURING JUNE AND markets about possible problems with banking and EARLY JULY stock market practices. As the dollar moved up to levels not seen for more During early June, a slew of U.S. economic than a year, market participants became wary of the indicators were released that were generally much possibility that some action to curb the dollar's rise more favorable than expected, and market observers might be decided upon at the Group of Seven (G-7) began to talk about the possibility that the U.S. meeting of finance ministers and central bankers, recovery might be more vigorous than previously scheduled to be held in London on June 23. As a anticipated. In response, expectations of a further result, the market became less concerned about the decline in U.S. interest rates faded, and the dollar upside risk for the dollar, and the currency traded in started to rise. In particular, on June 7, when it was a narrow range as the meeting approached. reported that May employment rose well above In the event, the G-7 ministers and governors expectations, the dollar rose almost two pfennigs on issued a communique that "reaffirmed their committhe day to close at DM1.7720. ment to cooperate closely, taking account of the need Developments in Germany during June also for orderly markets, if necessary through appropriately concerted action in foreign exchange markets." Market participants did not initially construe the G-7 1. Federal Reserve reciprocal currency arrangements statement as a firm commitment to intervene to resist Millions of dollars the dollar's rise. But comments following the meeting Amount of by several officials, including Japanese Finance Institution facility, July 31,1991 Minister Hashimoto, French Finance Minister Beregevoy, and U.S. Treasury Under Secretary Austrian National Bank 250 National Bank of Belgium 1,000 Mulford, reinforced the feeling that the possibility Bank of Canada 2,000 National Bank of Denmark 250 of intervention was being actively considered. Bank of England 3,000 Rumors about off-market transactions between the Bank of France 2,000 Deutsche Bundesbank 6,000 Bundesbank and the Federal Reserve, which were Bank of Italy 3,000 Bank of Japan 5,000 later confirmed by the authorities (as discussed later), were also taken as indications that prepara- Bank of Mexico 700 Netherlands Bank 500 tions to contain the dollar's rise were under way. Bank of Norway 250 Bank of Sweden 300 Thereafter, the dollar remained well below its Swiss National Bank 4,000 earlier highs against the yen. The release on June 25 Bank for International Settlements of data indicating a larger-than-expected rise in U. S. Dollars against Swiss Francs 600 Dollars against other authorized European durable goods orders for May temporarily supported currencies 11,,225500 the dollar against all currencies. But the spreading Total 3300,,110000 talk of new financial scandals in Japan was by this Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

786 Federal Reserve Bulletin • October 1991 time having offsetting effects on the yen. On the one Simultaneously, expectations began to grow that hand, market participants came to expect that the the Bundesbank would tighten monetary policy and authorities might move more quickly than otherwise pursue a more aggressive monetary stance than to lower interest rates as Japanese share prices previously supposed. By then, the release of price continued to decline. In fact, the Bank of Japan figures for several German states that suggested a announced a cut of V2 percentage point in its discount sharp acceleration in prices for "core" items was rate, to 5.5 percent, on July 1. On the other hand, seen as giving the Bundesbank more reason for an market participants viewed the adverse effect of the early policy-tightening move. Market participants stock market's decline on Japanese banks' capital appeared to be uncertain only about the extent and ratios as increasing the likelihood that major timing of such a move—whether it would come Japanese investors would be repatriating oversees before or after the succession of Dr. Schlesinger funds to invest in new subordinated debt instruments to the Presidency of the Bundesbank at the end that Japanese banks would be issuing to shore up of July. their capital positions. These offsetting develop- Against this background, the dollar's rise against ments helped to keep the dollar-yen exchange rate the mark stalled, and the exchange rate fluctuated relatively steady, with the dollar trading around without direction just above DM1.80. However, on ¥ 138 for the remainder of the three-month reporting July 11, when the Bundesbank did not raise official period. interest rates at its biweekly meeting and when a The mark, however, came under further selling sharp drop in U. S. weekly unemployment insurance pressure at the end of June and early July. The dollar claims was reported, the dollar jumped back up to initially strengthened against the mark in response to almost DM1.84. Early the next morning, as the the better-than-expected U.S. data for May durable dollar continued to move higher, foreign central goods orders released on June 25. Two days later, banks conducted several rounds of intervention, when in response to a controversial German court selling dollars against both marks and other curruling German officials reportedly suggested that a rencies. After the New York market opened, the withholding tax on investment income might be U.S. monetary authorities also participated, selling reinstated, the dollar broke decisively through the $100 million against marks. The widespread partic- DM1.80 level. The idea that such a tax-very ipation of central banks in the concerted intervention, unpopular when it was imposed in 1989 and quickly ahead of the G-7 summit meeting the next week, and withdrawn - might again be under consideration had the fact that the central banks continued to operate an immediate depressing effect both on the mark and throughout the day suggested to market participants on mark-denominated assets. The DAX index of that the central banks were united in their intention share prices (German Share Index) slumped 2.5 per- to curb the dollar's rise. As a result, the dollar cent the following day, and the dollar continued to declined about five pfennigs during the day to close rise in the following days to reach its high against the in New York at DM1.7893. This episode of mark for the period and for the year of DM 1.8427 in intervention, together with an increasingly uncertain European trading on July 5. U.S. economic scenario, set the tone for trading for the rest of the month. The dollar again reached the DM1.80 level on two occasions the next week, in THE DOLLAR GIVES BACK MOST OF ITS GAINS response to strong industrial production data and Chairman Greenspan's statement in his semi-annual DURING THE REST OF JULY Humphrey-Hawkins testimony that a recovery was under way, but it failed to move higher. Just as the dollar was reaching its highs of the period against the mark, market confidence in the U.S. The communique released on July 17 after the G-7 recovery began to weaken. U.S. economic data summit meeting reiterated support for close cooperreleased during the month no longer provided ation in foreign exchange markets, monetary and unambiguous evidence of economic recovery. The fiscal policies to foster low real interest rates, and release on July 5 of the employment report for Soviet economic and political transformation. While June, in particular, showed an unexpected drop in the communique had little immediate effect on employment. exchange rates, it contributed to an atmosphere in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Treasury and Federal Reserve Foreign Exchange Operations 787 2. Net profits or losses (-) The U.S. authorities exchanged $8,548.5 million on U.S. Treasury and Federal Reserve equivalent of foreign currencies for dollars: foreign exchange operations1 Millions of dollars • On June 25, the U.S. authorities purchased a U.S. Treasury total of $5,548.5 million against German marks Exchange Stabilization from the Deutsche Bundesbank in spot and forward Fund transactions. The U.S. and German authorities /aluation profits and losses on agreed that their respective holdings of German outstanding assets and liabilities as of April 30,1991 marks and dollars were in excess of current needs April 30,1991-July 31,1991 and that it was to their mutual advantage to reduce Realized those holdings. For each of these transactions, Valuation profits and losses on outstanding assets 60 percent of the purchase was to be executed for the and liabilities as of July 31,1991 account of the Federal Reserve and 40 percent for the account of the ESF. A spot transaction of 1. Data are on a value-date basis. $2,230.5 million settled on June 27. A forward transaction of $556.2 million settled on July 29. The which the fear of concerted intervention remained. remaining forward transactions are to be settled In that environment, the dollar did not strengthen during the remainder of the calendar year. even when unexpectedly favorable housing starts • On July 16, the U.S. authorities purchased a data were released later that day. total of $3,000 million against another foreign cur- During the rest of July, new U.S data releases rency in spot and forward transactions with a foreign brought into question the vigor and even the monetary authority. The dollars purchased were sustainability of economic recovery. Sentiment also split equally between the ESF and the Federal spread among U.S. financial market analysts that a Reserve. A spot transaction of $1,000 million settled significant decline in U.S. inflation, both actual and on July 18. Forward transactions totaling $2,000 prospective, would be reflected in a decline in long million are to be settled during the next quarterly bond yields. Moreover, statements by a variety of reporting period. U.S. officials, including some members of the Federal Open Market Committee, about the need to In addition, in July, the ESF sold a total of $130.2 respond if M2 growth remained weak revived market million equivalent of marks against special drawing expectations that U.S. short rates might still decline. rights (SDRs). The ESF also purchased a total of As a result, the dollar fell below DM1.80 during the $230.4 million against sales of SDRs in transactions third week of July and to levels around DM1.75 for with foreign monetary authorities in need of SDRs the rest of the period. either for payment of IMF charges or for repur- The dollar closed the May-July reporting period chases. Both the sales and purchases of SDRs were about 2 percent higher against the mark and 1 per- arranged by the IMF. cent higher against the yen. The dollar rose about Primarily because of its acquisition of dollars in 5.5 percent against the Swiss franc as expectations the foreign currency exchanges and SDR transacgrew that the monetary authorities in Switzerland tions described above, the ESF was able, after the would not follow those in Germany by tightening end of the reporting period, to repurchase $2,500 monetary policy. The dollar eased very slightly million equivalent of foreign currency warehoused against the Canadian dollar as the market came to with the Federal Reserve. These repurchases rebelieve that the Canadian authorities would be more duced the amount of ESF foreign currency balances restrained about easing monetary policy than would warehoused with the Federal Reserve from $4,500 the U.S. monetary authorities. million equivalent to $2,000 million equivalent as of During the reporting period, the U.S. monetary the end of August. authorities conducted off-market operations directly During the May-July period, the Federal Reserve with foreign monetary authorities to adjust the for- realized profits of $147.5 million from the offeign currency reserve assets of both the Exchange market foreign currency exchanges described above. Stabilization Fund (ESF) and the Federal Reserve. The Treasury realized profits of $60.3 million, of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

788 Federal Reserve Bulletin • October 1991 which $18.8 million was from the off-market for- A portion of the balances are invested in securities eign currency and SDR exchanges and $41.5 million issued by foreign governments. As of the end of was from the renewal of certain warehousing July, holdings of such securities by the Federal operations. Reserve amounted to $7,807.7 million equivalent, The Federal Reserve and the ESF regularly invest and holdings by the Treasury amounted to the their foreign currency balances in a variety of equivalent of $7,540.2 million valued at end-ofinstruments that yield market-related rates of return period exchange rates. and that have a high degree of quality and liquidity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

789 Industrial Production and Capacity Utilization Released for publication on August 16 in July to 79.7 percent, 1.3 percentage points above its trough in March. At 107.6 percent of its 1987 Industrial production rose 0.5 percent in July, the annual average, total industrial production in July fourth consecutive month of significant increases. was 2.5 percent below its year-ago level. The automobile, construction supplies, and materials In market groups, output of consumer goods, industries again provided much of the impetus for buoyed by a 10 percent increase in auto production, the latest month's rise in output. Total industrial moved up 0.4 percent in July. Apart from motor capacity utilization increased 0.2 percentage point vehicles, output of durable consumer goods de- Industrial production indexes Twelve-month percent change Twelve-month percent change Capacity and industrial production Ratio scale, 1987 production = 100 Ratio scale, 1987 production = 100 All series are seasonally adjusted. Latest series, July. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

790 Federal Reserve Bulletin • October 1991 1987 = 100 Percentage change from preceding month PPeerr-cceennttaaggee cchhaannggee,, Industrial production 1991 1991 JJuullyy 11999900 to Apr.r Mayr Juner Julyp Apr.r Mayr Juner Julyp July 1991 Total index 105.5 106.4 107.1 107.6 .5 .8 .6 .5 -2.5 Previous estimates 105.5 106.2 106.9 .5 .7 .7 Major market groups Products, total 106.9 107.6 108.0 108.4 .4 .7 .4 .3 -2.3 Consumer goods 105.5 106.5 107.2 107.6 .7 .9 .6 .4 .1 Business equipment 121.3 121.5 121.5 122.4 .8 .2 .0 .8 -2.1 Construction supplies 94.9 96.0 97.1 97.7 .9 1.1 1.2 .6 -8.4 Materials 103.4 104.6 105.7 106.4 .8 1.2 1.0 .7 -2.9 Major industry groups Manufacturing 105.9 106.5 107.3 107.9 .7 .6 .7 .6 -2.8 Durable 106.0 106.6 107.2 108.0 .9 .6 .6 .7 -4.8 Nondurable 105.9 106.4 107.4 107.8 .4 .6 .9 .4 -.3 Mining 100.9 100.5 102.4 101.5 -.6 -.3 1.9 -.9 -2.5 Utilities 105.9 111.0 109.5 110.3 -.4 4.8 -1.4 .7 .6 Percent of capacity CCCaaapppaaaccciiitttyyy gggrrrooowwwttthhh,,, CCCaaapppaaaccciiitttyyy uuutttiiillliiizzzaaatttiiiooonnn 1990 1991 JJJuuulllyyy 111999999000 AAvveerraaggee,, LLooww,, HHiigghh,, tttooo 11996677--9900 11998822 11998888--8899 July Apr.r Mayr Juner JulyP JJJuuulllyyy 111999999111 Total industry 82.2 71.8 85.0 83.8 78.6 79.1 79.5 79.7 2.6 Manufacturing 81.5 70.0 85.1 83.1 77.5 77.8 78.2 78.4 2.9 Advanced processing 81.1 71.4 83.6 81.8 77.3 77.3 77.4 77.5 3.2 Primary processing 82.4 66.8 89.0 86.1 78.2 79.1 80.1 80.8 2.1 Mining 87.4 80.6 87.2 90.7 88.3 87.9 89.5 88.6 -.1 Utilities 86.8 76.2 92.3 86.4 82.6 86.4 85.2 85.7 1.4 r Revised, NOTE. Indexes are seasonally adjusted. p Preliminary. clined, as production of appliances, which had more rapid than in advanced processing industries. surged in June, fell back last month. Output of The utilization rate for primary processing industries nondurable consumer goods moved up slightly was 80.8 percent in July, up 2.9 percentage points further in July, led by another increase in clothing. from March. Among the primary processing indus- Production of business equipment, other than autos tries that have shown notable gains in this period and trucks, posted a small gain in July, owing mainly have been primary metals, textiles, rubber and to some improvement in industrial equipment; plastics products, fabricated metals products, and between March and June, the index for business paper; the upswing in motor vehicle assemblies and equipment (excluding motor vehicles) had changed pickup in construction activity account for some of little. Output of construction supplies grew briskly this strength. The operating rate for the advanced in July for the fourth consecutive month, but processing group rose to 77.5 percent in July. Along production remained about 8 percent below its level with higher motor vehicle assemblies, rising producof a year earlier. Output of industrial materials grew tion in the electrical machinery and apparel indusrapidly in July, as it has since April. The increases in tries contributed substantially during the past few July occurred at producers of both durable and months to the overall increase in utilization for nondurable materials, particularly steel, textiles, advanced processing. and paper. Output in mining dropped noticeably in July, In industry groups, manufacturing output in- retracing about one-half of the large gain in June; a creased 0.6 percent in July, boosting the factory sharp curtailment in natural gas output more than operating rate 0.2 percentage point to 78.4 percent. offset a further rise in coal mining. Output of utilities Since its low in March, manufacturing production rose in July, and the operating rate at electric utilities has grown more than Vt percent per month; gains in moved up to nearly 93 percent in July, only a bit primary processing industries have been somewhat below the recent high in May. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

791 Statement to the Congress Statement by J. Virgil Mattingly, Jr., General which the Board believes are controlled by Counsel, and William Taylor, Staff Director, BCCI. Finally, we will discuss the Board's on- Division of Banking Supervision and Regulation, going enforcement actions and its legislative pro- Board of Governors of the Federal Reserve Sys- posals to strengthen the supervision of foreign tem, before the Subcommittee on Terrorism, banks operating in the United States. Narcotics and International Communications of the Committee on Foreign Relations, U.S. Senate, August 1, 1991 BANK OF CREDIT AND COMMERCE INTERNATIONAL We are pleased to appear before this subcommittee to describe recent developments in the case Structure of BCCI of Bank of Credit and Commerce International, S.A. and its affiliates (collectively BCCI). As has BCCI was founded in 1972 and until recently been widely reported, bank regulatory authori- operated principally under the leadership and ties in the United Kingdom, Luxembourg, Grand management control of individuals from Paki- Cayman, the United States, and several other stan. Initial equity financing of BCCI was procountries took action on July 5, 1991, to secure vided by Middle Eastern investors and Bank of control of the BCCI banks as an initial step America. Bank of America's ownership interest toward the liquidation of BCCI. This action was in BCCI was sold in 1980. In April 1990, to taken in response to evidence of widespread bolster BCCI's sagging financial position, the fraudulent conduct by BCCI and its manage- ruling family and the government of Abu Dhabi ment. More recently, the Federal Reserve as- provided additional capital that increased their sessed a civil money penalty of $200 million ownership interest in the shares of BCCI from against BCCI for its unlawful acquisition of the about 30 percent to 77 percent. stock of U.S. banks and its concealment of this BCCI's operations encompassed subsidiaries, control in regulatory filings. The Federal Reserve branches, and affiliates in sixty-nine countries, has also initiated actions to bar nine individuals principally in developing countries. BCCI, howassociated with BCCI from involvement with ever, was not one of the largest banks in the U.S. banks. The New York County District world. Its total assets of roughly $20 billion Attorney's Office has also secured indictments ranked it about 200th in the world. The parent against BCCI and two of its senior officers. holding company, BCCI Holdings (Luxembourg) S.A., was chartered and headquartered in Luxembourg, and the two largest banking subsidiar- SUMMARY OF REMARKS ies of the company—Bank of Credit and Commerce International S.A. and Bank of Credit and Our remarks today begin with a summary of Commerce International (Overseas) Limited— BCCI's operations, both abroad and in the were chartered in Luxembourg and the Cayman United States, and a description of the events Islands respectively. Although nominally headleading to the seizure of the bank's assets. We quartered in Luxembourg, BCCI's global busiwill then discuss the effect of BCCI's seizure on ness was operated out of its London offices. two U.S. banking organizations, First American Under Luxembourg law, holding companies Bankshares of Washington, D.C., and Indepen- are not subject to supervision. Thus, BCCI was dence Bank, Encino, California, the shares of able to avoid consolidated home country super- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

792 Federal Reserve Bulletin • October 1991 vision of its activities. Virtually from BCCI's and examination for foreign bank operations in formation, concerns were raised about a bank the United States that applies to U.S. banks. operating internationally without a home country regulator. SUPERVISORY ACTIONS—MONEY LAUNDERING BCCI's OPERATIONS IN THE UNITED STATES In May 1987, a Federal Reserve examination of the Miami office of BCCI identified money laun- BCCI has never been permitted to operate a dering activities, and a criminal referral was filed branch in the United States that accepts deposits with the Internal Revenue Service, the Federal from the general public; nor was it permitted to Bureau of Investigation, and the U.S. Attorney operate or control an insured bank. BCCI at one in Miami. In October 1988, BCCI and several of time maintained state-licensed agencies in New its U.S. employees were indicted for money York City, San Francisco, Los Angeles, Miami, laundering through BCCI's Tampa, Florida, of- Tampa, and Boca Raton, and representative of- fice. The Federal Reserve, with cooperation from fices in Washington, D.C. and Houston. None of state authorities, immediately commenced a cothese offices could accept domestic deposits. ordinated examination of all of BCCI's U.S. Because of actions taken by state and federal offices. The examinations of the New York and supervisory authorities as well as BCCI's plans Boca Raton offices revealed other money launto restructure its operations, four of the six dering activities, and additional criminal referrals agencies were closed by January 1991, and the were made in October and November 1988. remaining two had very substantially reduced The examinations also revealed that internal their operations. The representative offices were controls and lending practices of the BCCI agenclosed by August 1990. cies were poor and that remedial action was Under a Federal Reserve order issued earlier required. The Federal Reserve issued a cease this year, BCCI's remaining operations in this and desist order against BCCI in June 1989 country were scaled back, and the company was designed to strengthen the U.S. banking operaordered to terminate its activities in the United tions of BCCI and to enforce compliance with States within a year. On July 5, 1991, the two currency reporting requirements. remaining state-licensed agencies—in Los Angeles and New York City—held combined assets of approximately $250 million but less than $20 POSTINDICTMENT PERIOD million in liabilities to unrelated creditors. BCCI's offices in the United States were li- The indictment for money laundering in the censed and supervised on a regular basis by state United States further weakened BCCI's already authorities. As the residual supervisor of U.S. fragile reputation in the world financial commubranches and agencies of foreign banks, the nity. Federal Reserve staff members were ad- Federal Reserve participated in some state ex- vised that BCCI was experiencing some outflow aminations and conducted some examinations of of deposits in London and was encountering its own. Under the current framework governing difficulty in finding counterparties for its banking foreign bank operations in the United States transactions. In addition, BCCI's auditors had established in the International Banking Act of raised questions about whether certain loans 1978, the states are the primary regulators of the were collectible, which brought into sharper fobranches and agencies they license, and the cus the need for fresh capital. To address these Federal Reserve is directed to rely on their developments, the government and ruling family reports of examination insofar as possible. As of Abu Dhabi in spring 1990 provided capital described in the last section of this testimony, the resources of nearly $400 million, increasing their Federal Reserve believes that the time has come ownership of BCCI from 30 percent to about 77 to require the same type of federal supervision percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to the Congress 793 BCCI's problems, however, continued to countries would have to be executed with great mount. In October 1990, Price Waterhouse deliv- care to avoid banking disruptions on a national or ered a report to BCCI's board of directors that international scale. identified substantial additional problem loans. In light of this information, the Federal Re- This report gave rise to renewed discussions be- serve promptly dispatched senior officials of the tween the bank and its principal shareholder and Federal Reserve Bank of New York and of the European banking authorities concerning possible Board of Governors to London to begin the approaches to a broad-based restructuring of the coordination of efforts that led to the seizure of bank. These discussions continued into 1991. the BCCI banks on July 5, 1991. With respect to By early 1991, information received by the that action, the primary concern of the Federal Bank of England about BCCI and its activities Reserve was to take all reasonable steps to raised fresh questions about the financial condi- ensure that the seizure of the BCCI banks did not tion and integrity of the institution as a whole. In precipitate serious disruptions in U.S. banking turn, this information prompted the Bank of markets or in dollar-based payment and clearing England to commission Price Waterhouse to systems here or abroad. Four factors loomed undertake a special audit under the provisions of large in the deliberations of the Federal Reserve British banking law. The resulting so-called sec- in this regard: tion 41 report was completed and made available First, while BCCI's banking activities in the to the Bank of England on June 22, 1991. The United States were very small in balance sheet Bank of England's filings in British courts indi- terms, a large share of its global activities were cate that the report disclosed evidence of a conducted in dollars, which must be settled with complex and massive fraud at BCCI, including banks in the United States. From the perspective mismanagement, substantial loan and treasury of the Federal Reserve, and with the experience account losses, misappropriation of funds, unre- of the Herstatt failure of 1974 very much in mind, corded deposits, the creation and manipulation this fact made it very important that the anof fictitious accounts to conceal bank losses, and nouncement of the seizure of the BCCI banks be concealment from regulatory authorities of timed so as not to occur during normal business BCCI's true financial position. It was the findings hours in New York—a judgment that was shared of this report that led to the decision by the by the Bank of England and others. authorities in the United Kingdom, Luxembourg, Second, while the Federal Reserve was reaand the Cayman Islands to seize BCCI. sonably confident that the direct exposure of U.S. banks to BCCI was limited, we could not be sure—especially in the face of the multiple un- THE SEIZURE OF BCCI ON JULY 5 certainties about the underlying condition of BCCI—that banking exposures in other markets On Friday, June 28, the Bank of England in- or to other institutions might not cause disrupformed the Federal Reserve that the findings tions in interbank markets, payment flows, and contained in the Price Waterhouse report made it foreign exchange transactions that could spill likely that the authorities in the United Kingdom, over into U.S. markets and institutions. Luxembourg, and the Cayman Islands would Third, there was also the danger that other move during the following week to take control banking institutions in the Gulf—institutions with of the principal banks in the BCCI group. This no connections with BCCI and several of which information, while still tentative in nature, was have a major presence in London and New provided to the Federal Reserve, in part, as an York—could come under pressure by virtue of outgrowth of the continuing dialogue that had uncertainties created by the BCCI seizure. been occurring between the Federal Reserve and Finally, there was the more general concern the Bank of England regarding the overall inves- that the precedent of seizing an institution with tigation into the BCCI affair but also because it operations in some sixty-nine countries was recognized that the seizure of a global bank could—by its very nature—unsettle banking maroperating around the clock in some sixty-nine kets on a global scale. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

794 Federal Reserve Bulletin • October 1991 Over the course of Tuesday, July 2, and bourg. Over the course of the night of July 4, it Wednesday, July 3, the Federal Reserve briefed became apparent that the goal of effecting the the Treasury Department, the Office of the seizure at the close of business New York time Comptroller of the Currency, the Federal De- could not be realized. At about 2:00 a.m. Friday, posit Insurance Corporation, and others about July 5, the Federal Reserve was informed that the unfolding developments in Europe. The Fed- the only practical options were to coordinate the eral Reserve's efforts took place in confidence, in seizure either at midmorning New York time or part, because of the still uncertain course of to accelerate the action so that it would precede events in Europe and, in part, to ensure that the opening of business in New York City. The premature disclosure of information did not place choice to accelerate the process was clear. This some creditors of BCCI-related entities in a choice created a complicated task of getting the preferred position. personnel and other arrangements in place in the By midday Wednesday, July 3, it was increas- early hours of the morning after the Fourth of ingly clear that the seizure would, in fact, take July holiday, but it was accomplished without place on Friday, July 5. In these circumstances, major problems or difficulties. Public announcethe Federal Reserve informed senior officials at ments in Europe and the United States were the state banking departments in New York and coordinated at 8:30 a.m. New York time; the California. As the licensing authorities for the states of New York and California acted BCCI agencies in New York City and Los promptly; bank examination personnel were fully Angeles, the state banking departments—not the deployed by 8:30 a.m.; and the information- Federal Reserve—were responsible for initiating clearing centers at the Bank of England and the the actions to close those agencies. Federal Reserve remained operational through- While the exact timing of the seizure of the out the day of July 5 and over the ensuing BCCI banks had not yet been determined, the weekend. expectation on July 3 was that it would be timed Because of this effort involving the close coopto coincide with the close of business in New eration of authorities in several countries and York City on July 5. A special unit was estab- because the Federal Reserve and state authorilished at the Bank of England to coordinate ties had already scaled back BCCI's limited global regulatory actions and to provide a central operations in the United States, the seizure of point of supervisory information and advice. For BCCI was effected on a global scale with virtuseveral days, officials from the Federal Reserve ally no adverse effects on U.S. markets and Board and from the Federal Reserve Bank of institutions. As a result of earlier regulatory New York were stationed at the Bank of England action, on the day the U.S. offices of BCCI were to assist in that effort. A parallel unit, focusing closed by the states of California and New York, particularly on payment and settlement issues, as BCCI was funding its business in the United well as activities in U.S. banking markets more States from other non-U.S. BCCI offices and not generally, was established at the Federal Reserve from U.S. sources. As of July 30, it appeared that Bank of New York. This unit and a counterpart less than $20 million of the $252 million in group at the Board here in Washington were liabilities on the books of the U.S. offices of staffed sixteen hours a day during the first week BCCI are to third parties. after the closure. Throughout the day of July 4, the Federal Reserve maintained close communication with THE FIRST AMERICAN BANKS AND the Bank of England. Based on those discus- INDEPENDENCE BANK sions, it was still expected that the closure would occur at the close of the business day in New As the Chairman of this subcommittee, Senator York on July 5. On the evening of July 4, Kerry, will recall, we testified on May 23 about however, the Federal Reserve was informed that BCCI's efforts to gain control of U.S. banks the timing of the closure was being reconsidered before a subcommittee of the Senate Banking, because of legal issues that had arisen in Luxem- Housing, and Urban Affairs Committee. That Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to the Congress 795 testimony, a copy of which is attached and which tensive and secret loan and nominee arrangewe will not repeat in detail here, indicated that ments between BCCI and customers of BCCI BCCI had used loans and nominee agreements to designed to allow BCCI to acquire in the name of secretly gain control of the majority of the shares these customers the stock of the First American of First American Bankshares in 1982.1 The banking organization as well as other depository testimony also describes continuing efforts of the institutions in the United States. These arrange- Federal Reserve to detect and prevent BCCI ments in many cases involved sham loans to the control of First American's shares, and the vio- BCCI customers with side agreements that the lation of explicit commitments that BCCI would customers would not be required to repay or have no interest in the First American organiza- service the loans and that BCCI could sell the tion and would not fund the acquisition of First shares and retain the profits. In return for their American. services, the customers received fees and indem- On January 4, 1991, the Board authorized a nities. These nominee arrangements are deformal investigation concerning whether BCCI scribed in detail in the Board's civil money had violated the Bank Holding Company Act by penalty and prohibition actions of July 12 and 29, unlawfully gaining control of First American and 1991. whether false or misleading statements were Many of these CCAH loans were never sermade to the Board by BCCI and others to viced or repaid except through other loans from conceal BCCI's control. This investigation built BCCI. From the evidence available, it appears on prior inquiries into a possible First American- that these arrangements, particularly in later BCCI link made by the Federal Reserve in 1989 years, enabled BCCI to generate hundreds of and 1990. millions of dollars in fictitious profits to cover In late 1990, the New York County District massive losses in its trading and lending ac- Attorney, with whom the Federal Reserve had counts. been working, advised that he had received information about an auditor's report showing BCCI loans to shareholders of Credit and Com- THE BOARD'S CEASE AND DESIST ORDERS merce American Holdings, N.V. (CCAH), First American's parent. The Federal Reserve had As a result of information acquired in the early been attempting for some time to determine stages of the Board's investigation, the Board on whether such loans existed, despite having been January 22, 1991, made criminal referrals to the told by BCCI as late as 1990 that it had not lent Department of Justice and proposed a cease and to acquire CCAH shares. As a result of the desist order for BCCI. The cease and desist information, the Federal Reserve demanded that order, which was joined in by the New York BCCI provide access to the auditor's report. banking authorities and consented to by BCCI on After initial reluctance by BCCI's auditors, the March 4, had four principal components: requir- Board's staff was able to review a copy of that ing BCCI to divest promptly its CCAH shares; report in London in early December 1990. The ending business transactions between BCCI and report confirmed the existence of more than the First American banks; ensuring that BCCI $1 billion in nonperforming loans by BCCI se- had sufficient liquid assets to cover liabilities in cured by shares of CCAH. That review provided the U.S. agencies; and terminating BCCI's residthe Federal Reserve with substantive evidence of ual business presence in the United States. a BCCI-First American link, and the Board The order required BCCI promptly to divest its thereupon ordered the formal investigation. interest in CCAH through a plan to be submitted That investigation, as it progressed over the to the Board for its approval. The order, and a next several months, uncovered evidence of ex- similar one against CCAH, also prohibited transactions between BCCI and the First American banks (other than capital injections into the 1. The attachments to this statement are available on banks and certain clearing transactions in the request from Publications Services, Board of Governors of ordinary course of business). After entry of the the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

796 Federal Reserve Bulletin • October 1991 order, the Federal Reserve Bank of Richmond failed to set forth the timing of the sale—specifinformed the First American Bank of New York ically, there were no guarantees that the divestithat its clearing transactions for BCCI should be ture would be a prompt one, as required in the wound down and terminated before the end of Board's order. We therefore rejected BCCI's 1991. proposal by letter of May 10, and required BCCI The Board's investigation continued after issu- to submit within ten days a revised plan that ance of the March 4 order and discovered further addressed this concern. evidence indicating that BCCI also had acted On May 20, BCCI did submit a revised plan, through a nominee, Ghaith Pharaon, to acquire which also relied on a trust arrangement. Althe Independence Bank, Encino, California, in though this new plan did not contain a timetable, violation of the Bank Holding Company Act. On it did contain details and conditions that ap- May 3, the Board issued a second cease and peared to expedite the sale. A preliminary draft desist order requiring BCCI to submit to the of the trust agreement was submitted by BCCI on Board a plan for the divestiture of any shares of June 20. Independence Bank within its control. A criminal Implementation of BCCI's proposed divestiture referral relating to this violation was also filed. plans has been delayed by the seizure of BCCI by In conjunction with the investigation, the regulatory authorities. After those authorities Board has also taken steps to monitor through seized control of BCCI on July 5, the officers and the examination process the operations of the directors of BCCI were no longer able to negotiate First American banks and to determine any rela- or effectuate a divestiture of CCAH or Indepentionship with BCCI. Examinations and special dence Bank stock on behalf of BCCI. reviews were undertaken by the Federal Reserve The July 5 seizure order does not void the and other federal and state banking authorities in Board's divestiture orders, however. The orders January 1991. These efforts continue. remain fully effective and legally binding. The seizure shifts the task of implementing the orders from BCCI to the receivers for BCCI. We have IMPLEMENTATION OF THE ORDERS been in contact with the receivers, explaining to them the need to achieve total divestiture as soon As a result of the orders, transactions between as possible, and requesting that they submit BCCI and the First American banks and Inde- promptly a revised divestiture plan. The receivpendence Bank have been steadily eliminated. ers have indicated a desire to cooperate with the The relationship between BCCI and the First Federal Reserve to achieve divestiture, and our American Bank of New York—with which BCCI discussions are continuing. The Board is also had maintained a correspondent relationship— exploring other avenues to regularize the ownerwas wound down substantially by July 5. ship of CCAH and Independence. Events have made the requirement that BCCI divest the shares of CCAH under its control more difficult to achieve. On May 3, BCCI sub- ENFORCEMENT mitted to the Board a proposed divestiture plan for the CCAH shares, and on July 3, BCCI The Board's investigation of the BCCI matter is submitted a divestiture plan for the Indepen- continuing and is the most comprehensive in our dence Bank shares. The CCAH plan called for experience. As part of its investigation, the transfer of the shares of CCAH held by BCCI, Board is proceeding with enforcement actions as and possibly shares held by other CCAH share- the evidence to support such actions is accumuholders, to a trust administered by an indepen- lated. On July 12, the Board issued a notice of dent trustee acceptable to the Board. The trustee intent to bar from U.S. banking the individuals would vote the stock and negotiate its sale within participating in the Independence Bank violaa time frame agreed to by the Board. We found tion. Those individuals are Agha Hasan Abedi the trust arrangement to be acceptable but con- and Swaleh Naqvi, two former senior officers of sidered the proposal to be deficient because it BCCI; Kemal Shoaib, a former officer of BCCI Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to the Congress 797 and the former chairman of Independence Bank; recurring, the Board has sent to the Congress a and Ghaith Pharaon, the owner of record of set of proposals to strengthen the supervision Independence Bank and a shareholder of BCCI. and regulation of foreign banks operating in this More recently, on July 29, the Board issued a country. Those proposals, collected as the For- Notice of Assessment of $200 million in civil eign Bank Supervision Enhancement Act of money penalties against BCCI for its illegal ac- 1991, were introduced in the Senate as S. 1019 by quisition of CCAH, the National Bank of Geor- Senators Riegle, Kerry, and Garn, and are to be gia, and CenTrust Savings Bank. The Board also considered as part of the comprehensive banking issued a notice of intent to bar permanently nine reform proposal currently before the Senate individuals associated with BCCI from any fu- Banking Committee. ture involvement with U.S. banking organiza- This legislation would establish uniform fedtions. On the same day, the District Attorney's eral standards for entry and expansion of foreign Office for the County of New York secured banks in the United States, including, imporindictments of BCCI. tantly, a requirement of consolidated home coun- The Board is continuing to cooperate with law try supervision and the application of the same enforcement agencies, and will, of course, con- financial, managerial, and operational standards sult those agencies before taking enforcement that govern U.S. banks. The proposal would also action so as to avoid prejudicing any criminal grant regulators the power to terminate the acinvestigation. Thus, at the request of the U.S. tivities of a foreign bank that is engaging in Attorney for the District of Columbia, the Board illegal, unsafe, or unsound practices. Regulators has deferred temporarily the assessment of sub- would be provided with the information-gatherstantial civil money penalties against the individ- ing tools necessary to carry out their supervisory uals already charged, pending completion of the responsibilities. U.S. Attorney's criminal inquiry. As this case amply demonstrates, continuing consolidated supervisory oversight of a bank's operations is essential to maintaining the integ- CURRENT STATUS rity of the bank's operations and preventing adverse effects on the financial system. BCCI As of July 6, 1991, governments of eighteen operated without a supervisor that could demand countries were known to have closed or re- consolidated financial reports; this method of stricted the activities of BCCI operations in their operation was critical to its ability to carry out jurisdictions. By July 29, 1991, a total of forty- the manipulation of its books and the concealfour countries had closed BCCI offices in their ment of its actual financial condition. respective jurisdictions. BCCI offices continued The proposed foreign bank legislation is into be open under varying degrees of regulatory tended to ensure that no other foreign bank may presence in twenty-five other countries as of the participate in this country's banking system unsame date. Although complete information is not less the books and records showing the financial yet available, it appears that governments of condition of that organization are open to inspecsome developing countries could have some ex- tion by a home country supervisor and the bank posure to BCCI. is supervised on a consolidated basis. The legislation provides the regulatory tools needed to implement this policy. LEGISLATIVE INITIATIVES As a result of the BCCI matter and other recent CONCLUSION compliance problems with foreign banks, the Board reviewed the statutes, regulations, and The Federal Reserve is monitoring the BCCI supervisory policies governing foreign bank op- situation closely and will continue to cooperate erations in the United States. To help prevent with federal, state, and foreign bank supervisors problems such as those presented by BCCI from and law enforcement agencies. Further informa- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

798 Federal Reserve Bulletin • October 1991 tion concerning the extent of BCCI's fraudulent Independence a complete separation in law so activities and the individuals involved may come that these banks can be relieved of any taint that to light as the numerous investigations under way they might be suffering from an association with progress. BCCI. In the coming weeks, we will be working Our immediate goal is to make the current with British, Cayman, and Luxembourg authorseparation in fact between BCCI and CCAH and ities toward that end. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

799 Announcements EXTENSION OF COMMENT PERIOD CHANGE IN BOARD STAFF ON PROPOSED DEFINITION OF HIGHLY LEVERAGED TRANSACTIONS The Board of Governors announced that Richard C. Stevens joined the Office of the Secretary as Visiting On August 27, 1991, the Federal Reserve Board, Assistant Secretary for a one-year period beginning along with the Comptroller of the Currency and the September 30, 1991. Mr. Stevens is currently Federal Deposit Insurance Corporation, extended Assistant Director in the Division of Applications the period to receive comments on the supervisory Development and Statistical Services. definition of highly leveraged transactions (HLTs). From 1975 to 1982, the Board's Visiting Assistant Comment was requested by September 23, 1991, Secretary program was targeted toward Reserve instead of August 26,1991. Bank and Board officers to further professional The extension was granted after the three agencies development by providing broad exposure to proreceived inquiries from potential commenters re- grams and operations of the Board and the System. questing additional time to submit views. The program has recently been reinstated, but will now be aimed at Board officers only. Mr. Stevens is the first participant in this newly reorganized program. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

800 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON JULY 2-3,1991 March-to-May period, the rise in outlays outpaced gains in personal income. In May, a sizable increase Domestic Policy Directive in spending for durable goods reflected stronger outlays for motor vehicles and higher expenditures The information reviewed at this meeting suggested for most major categories of nondurable goods. that an upturn in economic activity had begun in Excluding outlays for electricity associated with recent months. Sizable gains in consumer spending unusually warm weather, spending for services and small increases in expenditures on residential increased only modestly in May. Continuing a construction appeared to be fueling a moderate rise pattern of gradual recovery recorded in earlier in domestic final demand. Although inventories months, housing starts rose over April and May. In were still being liquidated, data for industrial these two months, single-family starts strengthened production and labor markets indicated that output further but, with apartment vacancy rates continuing was being stepped up to meet that demand. Excluding high, multifamily construction remained quite weak. food and energy items, increases in consumer prices After declining in the first quarter of the year, had been small in recent months. shipments of nondefense capital goods increased in Total nonfarm payroll employment edged up in both April and May. The turnaround resulted mostly May, following nearly a year of uninterrupted from larger shipments of aircraft; shipments of declines, and the average workweek posted a sizable other types of business equipment increased slightly gain. The turnaround in employment was fairly over the two months. Recent data on orders pointed broad-based. In manufacturing, recalls of workers to some firming in the demand for business equipin the motor vehicles industry more than accounted ment. Near-record vacancy rates for office buildings for the overall increase, but most other manufactur- and above-average vacancy rates for industrial ing industries registered either small job gains or buildings suggested continuing weakness in nonresgreatly moderated job losses. Employment also idential construction, although a small increase was turned up in the construction sector and in private recorded in April. The pace of liquidation of service-producing industries. The unemployment manufacturing and trade inventories slowed in April rate rose to 6.9 percent in May but, averaged over from the very rapid March rate, largely reflecting a April and May, the unemployment rate was little slower rate of reduction in stocks at auto dealers. In changed from its March level. May, manufacturing inventories fell appreciably Industrial production rose in April and May, after further, with drawdowns occurring in most durable declining sharply earlier in the year; the limited and nondurable categories. For most industries, the product data available for June pointed toward sharp inventory corrections of recent months along another gain. Perhaps reflecting the pickup in with a pickup in sales have reduced inventory-tohousing starts in recent months, production of sales ratios substantially. construction supplies turned up in April and May. In April, the preliminary nominal U.S. merchan- Further advances in assemblies of motor vehicles dise trade deficit widened slightly from the revised contributed to a slight rise in manufacturing output March level; however, the April deficit was someover the two months; in spite of the overall increase what smaller than the average for the first quarter, in activity, though, the operating rate in manufactur- which itself had registered a sizable decrease. The ing edged lower in May and remained well below its value of both exports and imports rose in April. For level of a year earlier. exports, the increase occurred primarily in capital Real personal consumption expenditures re- goods and automotive products, but gains also were bounded in May from an April decline; over the indicated for a broad range of industrial supplies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

801 Increases in the value of imports were spread among seasonal credit during the spring crop planting capital and consumer goods and non-oil industrial season. Against a backdrop of accumulating evisupplies. Recent indicators of economic activity in dence that the economy was beginning to recover the major foreign industrial countries had been and related expectations that no further easing of mixed; on balance, growth seemed to have been monetary policy was likely in the near term, many sluggish in the second quarter, while inflation in interest rates rose slightly during the intermeeting most of these countries appeared to be stable or period, while most major stock price indexes edged declining. higher on balance. Nonfood, nonenergy consumer prices increased The trade-weighted value of the dollar in terms of over the March through May period at a substantially the other G-10 currencies increased substantially on slower pace than over the first two months of the net over the intermeeting period, partly in response year. Part of the slowdown in recent months reflected to news suggesting that the U.S. economy was an unwinding of large price increases that had turning upward. The dollar rose strongly against the occurred in certain components of the index early in mark and other European currencies, which also the year. In May, producer prices of finished goods were affected by political developments in Europe. firmed somewhat, largely reflecting an upturn in Growth of M2 rebounded in May from its taxenergy prices. Although average hourly earnings of related weakness in April but slowed again in June. production or nonsupervisory workers rose at a Over the three months ending with June, the faster rate in April and May than in the first quarter expansion of M2 fell somewhat short of Committee of the year, the increase in earnings over the twelve expectations. Inflows to the liquid retail deposit months ending in May slowed somewhat. For the components of M2 were strong in the latest two twelve months ending in March, growth in total months, but small time deposits declined at an employer costs for compensation of private industry accelerating rate; depositors evidently responded to workers had slowed from the comparable year- less attractive offering rates on time deposits by earlier period. shifting some funds not only into liquid money stock At its meeting on May 14, 1991, the Committee components but also into bond and stock mutual adopted a directive that called for maintaining the funds and other capital market investments not existing degree of pressure on reserve positions and included in this aggregate. M3 fell slightly in June that did not contain any presumption about the likely and had grown little since February, reflecting direction of possible intermeeting adjustments. continued shrinkage of the thrift industry and the Accordingly, the directive indicated that somewhat weakness in bank loan demand and therefore in more or somewhat less pressure on reserve positions overall bank funding needs. For the year thus far, might be appropriate during the intermeeting period expansion of M2 and M3 had been in the middle depending on progress toward price stability, trends portion of the Committee's ranges. in economic activity, the behavior of the monetary The staff projection prepared for this meeting aggregates, and developments in foreign exchange suggested that economic activity was beginning to and domestic financial markets. The contemplated recover from the recession and that moderate growth reserve conditions were expected to be consistent in final demand accompanied by a shift in business with growth of M2 and M3 at annual rates of around inventories from substantial liquidation to modest 4 and 2 percent respectively over the three-month accumulation would lead to considerable growth period from March through June. over the second half of the year. The stimulus from Open market operations during the intermeeting the inventory swing was projected to diminish next period were directed toward maintaining the existing year and the expansion to slow gradually to a pace degree of pressure on reserve positions. The federal consistent with continuing moderate growth in final funds rate remained near 5% percent, while adjust- demand. On balance, the early and subsequent ment plus seasonal borrowing tended to average a phases of the recovery were projected to be relatively little above assumed levels because of somewhat slow by past cyclical standards, reflecting the limited greater usage of adjustment credit. Several technical impetus that could be expected from some key changes were made to assumed levels of borrowing sectors of the economy, such as nonresidential to reflect expected increases in the demand for construction where activity would be depressed by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

802 Federal Reserve Bulletin • October 1991 high vacancy rates. In addition, fiscal policy, the rate of unemployment, and the rate of inflation including the budgetary stance of state and local for 1991 and 1992. These projections took account governments, was projected to remain fairly restric- of the monetary growth ranges that the Committee tive. Against the background of continuing, albeit reaffirmed for 1991 and established on a tentative decreasing, slack in labor and product markets, the basis for 1992 at this meeting; these ranges are core rate of inflation was expected to decline expected to be consistent with the Committee's goal considerably over the period through the end of of promoting a sustained expansion in the economy, 1992. fostered by further progress toward price stability. In the Committee's review of current and prospec- Forecasts of nominal GNP converged on growth tive economic developments, the members generally rates of 4V& to 5% percent for 1991 and 5VI to agreed that a recovery very likely was under way, 6Vi percent for 1992. With regard to the rate of that final demand would grow moderately for some expansion in real GNP, the projections had a central time, and that an end to inventory reductions would tendency of % to 1 percent for 1991 as a whole, provide an impetus to production over coming implying a sizable rebound over the balance of the quarters. A number of factors were expected to year; for the year 1992, the central tendency of the damp the expansion, notably the budget policies of projections was 2LA to 3 percent. While the civilian governments at all levels and continuing weakness unemployment rate was not projected to fall much in nonresidental construction. There also were over the balance of the year, the expansion was puzzling aspects to the current situation and attendant expected to result in a decline to a somewhat lower risks to the outlook: Commodity prices had failed to range of 6% to 6!/2 percent by the fourth quarter of firm in their usual pattern in the early stages of a 1992. With regard to the rate of inflation as measured recovery; on the financial side, money and credit by the consumer price index, the projections had a growth had remained modest, and conditions were central tendency of 3 V4 to 3 % percent for 1991 and 3 still fragile in many respects. However, it was noted to 4 percent for 1992; because declines in energy that sources of strength in an economic expansion prices had damped the rise of consumer prices often have been difficult to anticipate near a cycle substantially thus far in 1991, the similarity of the trough. Moreover, while the expansion was expected ranges for the two years masked expectations of a to be slower than the average for postwar business pronounced decline in the core rate of inflation. cycles, the recession had been relatively shallow, In the course of the Committee's discussion, and a moderate expansion was more likely to be members reported that business conditions remained sustained for a considerable period ahead, in large uneven across the country, depending on the mix of measure because it would be consistent with contain- local industries, but overall economic activity now ing inflation pressures. appeared to be expanding at a modest pace in a The members projected that the underlying rate of number of regions and to have stabilized following inflation would decline in coming quarters—despite earlier declines in several other parts of the nation. quite limited progress thus far this year—in light of However, in some areas, notably portions of the some continuing slack in demands on production Northeast, business activity appeared to be weakenresources and efforts by businesses to contain costs. ing further. Business sentiment remained cautious A number stressed that the moderate monetary on the whole, but many contacts were expressing growth over recent years suggested that monetary greater confidence in the outlook for the economy policy had been positioned to foster a reduction in and their own industries, at least looking ahead to inflation, and they anticipated that the beneficial 1992. Agriculture was a source of strength in many effects of this policy would show through over the parts of the country, although drought conditions in projection period. some areas and excessive rains in others had given In keeping with the practice at meetings when the rise to some concerns. Committee considers its long-run ranges for the As has tended to occur in the early stages of money and debt aggregates, the members of the previous cyclical recoveries, the swing in business Committee and the Federal Reserve Bank presidents inventories from substantial liquidation toward not currendy serving as members provided specific accumulation was likely to play a leading role in projections of the growth in real and nominal GNP, bolstering the expansion during the next two or three Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee 803 quarters. The members acknowledged that inventory probably for an extended period in many localities, developments were difficult to project, and views because of the substantial overhang of vacant office differed to some extent regarding the strength of the space and other commercial facilities. Some memimpetus that might be forthcoming from this source bers noted, however, that nonresidential construcover the next few quarters. In any event, the available tion was improving in some areas, in part as a result data tended to confirm reports from business contacts of public works projects. Despite the likelihood of regarding the absence of excessive stocks in most persisting weakness in nonresidential construction, sectors of the economy and parts of the country. In overall business fixed investment was expected to these circumstances, the firming in final sales that strengthen to a limited extent once the recovery in appeared to be under way was likely to result in a economic activity was more firmly established. cessation of inventory liquidation over the nearer The outlook for residential construction was term and to induce an actual buildup at some point viewed as somewhat more promising. Home sales later. It was suggested that this process already had appeared to be on a distinct uptrend, notwithstanding begun and might indeed be somewhat ahead of the temporary reversal in new home sales in May, earlier expectations. and residential construction was picking up in many While the swing in inventories was likely to areas as housing backlogs were worked lower. provide a substantial boost to economic activity over Members commented, however, that the upswing in the next few quarters, some members questioned the such construction might be relatively subdued by potential strength of ongoing factors promoting past cyclical standards, reflecting fairly high vacancy expansion once the adjustment in inventories had rates and the failure of mortgage rates to decline as largely run its course. Growth in consumer spending much as they had in previous recession periods. might well remain relatively restrained. The saving Continuing constraints on the availability of loans rate already was low, and the willingness or ability for land acquisition and construction might also be a of many consumers to incur debt to finance increased factor tending to inhibit construction activity, at spending would tend to be inhibited by existing debt least currently. burdens and perhaps also by the loss of tax deduct- With regard to the financial setting of the econibility on consumer loan interest. In addition, omy more generally, members noted that the distress widespread publicity about the fragility of some being experienced by some financial intermediaries financial institutions and continuing concerns about was a key source of concern and downside risk for employment prospects might damp consumer senti- the economy. One could not rule out a major ment, and the absence of a strong rebound in deterioration in public confidence in one or more residential construction would tend to moderate the types of lenders, which could seriously disrupt their growth in spending on consumer durables. On the ability or willingness to supply credit. However, positive side, the favorable effects on disposable that risk was likely to lessen over time. The income of the earlier decline in oil prices was being rebuilding of balance sheets, including those of supplemented by a resumption of appreciable growth commercial banks, was a promising development, in personal income as final sales and production and the strength of the stock market along with lower improved. risk premia on debt obligations pointed to an With regard to the outlook for business fixed improving financial climate. Borrowers with direct investment, contacts around the nation suggested access to capital markets were finding abundant that business executives remained cautious about credit at lower spreads. Many depository institutions making capital spending commitments. Nonethe- apparently were continuing to pursue very cautious less, the recent pickup in new orders for business lending policies, though the shift toward even more equipment and a more mixed pattern in nonresiden- stringent terms on loans seemed to have abated. tial building contract awards and permits were Overall, debt growth appeared to be quite sluggish, promising developments that tended to reduce earlier with much of the weakness concentrated at deposiconcerns about a possible cumulative weakening in tory institutions; this probably was contributing to business investment. Among the components of this the relatively damped expansion of the monetary key sector of the economy, nonresidential construc- aggregates around the cycle trough. The relationship tion activity was expected to remain depressed, between borrowing and spending seemed to be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

804 Federal Reserve Bulletin • October 1991 adjusting in ways that were not entirely understood, meeting reviewed the ranges for growth in the but the behavior of both debt and money were monetary and debt aggregates that it had set in cautionary signs that needed to be monitored February for 1991, and it established on a tentative carefully. basis ranges for growth in those measures in 1992. A number of members commented that in compar- The current ranges included growth of 2 lh to ison with prior cyclical experience the budget 6V2 percent for M2 and 1 to 5 percent for M3 for the policies of all levels of government were likely to be period from the fourth quarter of 1990 to the fourth relatively restrictive over the projection horizon. At quarter of 1991. A monitoring range of 4lA to the federal level, despite burgeoning borrowing SV2 percent had been set for growth in total domestic requirements in the near term, cutbacks in defense nonfinancial debt in 1991. spending and other efforts to curb expenditures In the course of the Committee's deliberations, all under the budget agreement of 1990 and to maintain of the members agreed that the ranges established that control under procedures put in place by the for this year remained appropriate. The members agreement, appeared to have helped put federal noted that both M2 and M3 were in the middle spending for goods and services on a downward portions of their ranges. With regard to developpath. At the state and local level, severe budgetary ments affecting M2, growth of nominal income had problems were being addressed in many areas by weakened over the first half of the year, but demands increased taxes and restraints on spending. These for M2 balances had been bolstered by declines in efforts to control governmental spending were likely market interest rates that had brought a narrowing of to be an important factor contributing to a subdued the opportunity costs associated with holding deexpansion in nonresidential construction. posits. On balance, growth of this aggregate thus far Turning to the outlook for inflation, the members in 1991 had fallen short of what might have been remained optimistic that substantial progress could expected on the basis of historical relationships with be made in reducing its underlying rate over the nominal income and interest rates. The reasons for projection horizon. Some expressed disappointment the shortfalls were not fully understood, but the that, while a number of special factors had been continuing redirection of credit flows away from involved, the deceleration in consumer prices had depository institutions and toward market channels been very limited this year, excluding the effects of a as well as apparent investor preferences for the sharp drop in energy prices and slower increases in higher yields offered by longer-term investments food prices. Nonetheless, the members generally appeared to be contributing factors. The projected believed that if the recovery tended to unfold as they pickup in nominal GNP growth in the second half of were projecting, pressures on production resources the year would by itself tend to boost the growth of would remain subdued and efforts to contain labor M2 somewhat, but increases in velocity also were and other business costs would continue, especially quite possible. Any strengthening of M2 probably in the context of very competitive markets for most would be limited by some widening of opportunity products. Additionally, the appreciation of the dollar costs associated with a further decline in offering this year could be expected to exert a damping effect rates on liquid deposits in lagged response to earlier on inflation. As a trend toward lower inflation declines in market rates. Moreover, the likely became more pronounced and widely perceived, the persistence of a steep yield curve could lead disinflationary forces in the economy would be depositors to continue to place some maturing time reinforced by a moderation of inflationary expecta- deposits in long-term market instruments that had tions. An integral part of these developments, which more attractive yields, such as bond mutual funds. several members emphasized, was the role of Considerable uncertainty continued to surround the restrained monetary expansion over an extended demand for money and the behavior of velocity. period in curbing underlying inflation pressures. However, in the judgment of the Committee, it now seemed that growth within the current range would Against the background of the Committee's views indicate that policy was positioned to foster a regarding prospective economic developments and sustainable economic expansion, and that the 4in keeping with the requirements of the Full percentage-point range provided adequate leeway Employment and Balanced Growth Act of 1978 (the for any adjustments that might be needed in the event Humphrey-Hawkins Act), the Committee at this Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee 805 the economy or monetary velocity were to diverge Angell, Black, Forrestal, Keehn, Kelley, LaWare, substantially from their expected paths. Mullins, and Parry. Votes against this action: None. Through the remainder of 1991, M3 growth also could be expected to be boosted by the strengthening In the Committee's discussion of the ranges for of the recovery, which was likely to stimulate some 1992, most of the members supported a proposal to pickup in bank credit extensions. However, a faster extend the 1991 ranges provisionally to next year. pace of resolutions by the Resolution Trust Corpo- Insofar as developments bearing on economic and ration (RTC) would tend to depress thrift credit—by financial conditions in 1992 could be anticipated at placing more thrift assets under government control this point, these members believed that monetary or in the hands of private nondepository insti- growth within the current ranges would be consistent tutions—and issuance of large time deposits by with sustainable economic expansion in the context branches and agencies of foreign banks could be of continuing progress toward price stability. The expected to slow from the pace earlier in the year as upper bounds of those ranges provided desirable more of the adjustment to the change in relative leeway for policy to resist any tendency for the borrowing costs caused by the reduction in reserve recovery to falter while the lower ends allowed requirements late last year was completed. ample room for policy to counter stronger-than- The members took note of a number of factors that expected inflationary pressures. had tended to depress the growth of domestic Several members favored a reduction in the M2 nonfinancial debt, which had been growing at the range for next year. Such a move would continue the low end of the Committee's monitoring range. The trend of moving the range downward until it was latter included the slower pace of economic activity, consistent with price stability. Recent developments more cautious attitudes on the part of borrowers suggested that conditions were favorable for making toward taking on debt and lenders toward extending substantial progress toward lower inflation, and it, and a sharply lower pace of net equity retirements. these members emphasized that it was important for Looking ahead, the members anticipated that, with the Committee not only to take advantage of this the pickup in the economy, nonfinancial debt would opportunity but to signal its determination in this expand more rapidly in the second half of the year. regard. The resulting improvement in the credibility While slowing debt growth had a number of positive of the Committee's anti-inflationary policy and the aspects for the long-run stability of the financial related favorable effects on inflationary expectations markets and the economy, a tendency for debt to would reduce the transitional costs of achieving drop below its current range might indicate that price stability. supply or demand conditions were inconsistent with Those in favor of retaining the current range for a satisfactory economic expansion. M2 commented that the range had been reduced At the conclusion of this discussion, the Commit- substantially in recent years and that its midpoint tee voted to approve the following broad policy already was close to a rate consistent with price statement and to reaffirm the 1991 ranges that it had stability over time, presuming no unanticipated trend established in February for growth of M2, M3, and in the velocity of M2 and some upward bias in nonfinancial debt: measured inflation. For 1992, some members were concerned that, absent a significant increase in the The Federal Open Market Committee seeks monetary velocity of M2, satisfactory nominal GNP growthand financial conditions that will foster price stability and within the central tendency of the members' forepromote sustainable growth in output. In furtherance of casts - already implied expansion of M2 in the upper these objectives, the Committee reaffirmed at this meeting part of a 2xh to 6V2 percent range. A lower range the ranges it had established in February for growth of M2 might not provide sufficient flexibility to deal with and M3 of 2Vi to 6V2 percent and 1 to 5 percent, an unanticipated shortfall in aggregate demand or respectively, measured from the fourth quarter of 1990 to the fourth quarter of 1991. The monitoring range for disturbances to still-fragile financial markets. Ungrowth of total domestic nonfinancial debt also was certainties about the behavior of velocity at a time maintained at 4l/z to 8V2 percent for the year. when an important restructuring of financial flows appeared to be in process, especially with regard to Votes for this action: Messrs. Greenspan, Corrigan, the role of depository institutions, also argued for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

806 Federal Reserve Bulletin • October 1991 simply carrying over the existing range. There this juncture an unchanged policy course offered the would be an opportunity to review the range next greatest promise of reconciling the Committee's February, when evidence would be in hand about goals of sustaining the nascent business recovery velocity in the second half of the year and some of while also fostering further progress against inflathe uncertainties about the strength of the recovery tion. There were obvious areas of uncertainty and would be diminished. At that time, careful consider- vulnerability in the current economic and financial ation would need to be given to reducing the range, if situation, but developments were unlikely to require conditions implied that such an action was appropri- an immediate adjustment in reserve market condiate in furthering and underscoring the System's goal tions. For now, monetary policy appeared to be on of reducing inflation over time. an appropriate course. At the conclusion of this discussion, with two The members devoted some attention during this members dissenting, the Committee approved discussion to the relatively sluggish growth of M2 provisional ranges for 1992 that were unchanged and M3 in recent months. Some commented that the from those for 1991, and it voted to incorporate the behavior of the broader aggregates might imply that following statement regarding the 1992 ranges in its monetary policy had not been eased sufScientiy in domestic policy directive: recent months and therefore might not provide adequate support to sustain the expansion. It was For 1992, on a tentative basis, the Committee agreed to noted, however, that apart from the usual uncertainuse the same ranges as in 1991 for growth in each of the ties about the relationship of M2 and M3 to growth monetary aggregates and debt, measured from the fourth and spending in the short run, the expansion of Ml quarter of 1991 to the fourth quarter of 1992. With regard and especially of reserves and the monetary base had to M3, the Committee anticipated that the ongoing been fairly robust since early spring. Moreover, restructuring of thrift depository institutions would continue to depress the growth of this aggregate relative to many borrowers were meeting their financing needs spending and total credit. The behavior of the monetary through market sources. In this situation, the aggregates will continue to be evaluated in the light of members generally concluded that the behavior of progress toward price level stability, movements in their M2 and M3, which on a cumulative basis were still velocities, and developments in the economy and financial in the middle portions of the Committee's ranges for markets. the year, did not call for any policy adjustments at this point. Nonetheless, continuing weak growth Votes for this action: Messrs. Greenspan, Corrigan, Forrestal, Keehn, Kelley, LaWare, Mullins, and Parry. might require a review of this conclusion. A staff Votes against this action: Messrs. Angell and Black. projection prepared for this meeting indicated that, with reserve market conditions unchanged, some- Messrs. Angell and Black dissented because they what faster growth in the broader aggregates was preferred to reduce the M2 range for 1992 by likely to emerge in the months ahead, induced by Vi percentage point. They pointed out that the lower greater money demands in the context of a strengthrange would be centered on the average growth of ening economy. M2 in recent years and would provide a timely signal With regard to possible adjustments to the degree of the Committee's continuing commitment to price of reserve pressure during the intermeeting period stability, thereby reinforcing and extending the ahead, nearly all the members expressed a preferprogress in curbing inflation anticipated over the ence for a directive that did not bias prospective next several quarters. They believed that the operations toward tightening or easing but made an resulting decline in inflationary expectations would intermeeting adjustment, if any, equally likely in lower the transitional costs of achieving price either direction depending on economic and financial stability and, by favorably affecting long-term developments and the behavior of the monetary interest rates, would help sustain the expansion in aggregates. One member preferred a directive that economic activity. was tilted toward possible tightening; in this view, a In the Committee's discussion of policy for the prompt response to any tendency for inflationary intermeeting period ahead, all of the members were conditions to re-emerge would have a favorable in favor of maintaining an unchanged degree of effect on inflationary expectations and long-term pressure on reserve positions. They believed that at debt markets and might avert the need for a more Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee 807 substantial policy adjustment later. Other members Most interest rates have risen slightly since the agreed on the desirability of a prompt adjustment to Committee meeting on May 14. The trade-weighted value of the dollar in terms of the other G-10 currencies inflationary developments, but they did not see a increased substantially on balance over the intermeeting special need to anticipate such an adjustment in the period. period ahead. M2 grew at a moderate pace over May and June, while At the conclusion of the Committee's discussion, M3 changed little. For the year thus far, expansion of M2 all of the members indicated that they favored a and M3 has been in the middle portion of the Committee's directive that called for maintaining the existing ranges. The Federal Open Market Committee seeks monetary degree of pressure on reserve positions. The and financial conditions that will foster price stability and members also noted that they preferred or could promote sustainable growth in output. In furtherance of accept a directive that did not include a presumption these objectives, the Committee reaffirmed at this meeting about the likely direction of any intermeeting the ranges it had established in February for growth of adjustments in policy. Accordingly, the Committee M2 and M3 of 2Vi to 6V2 percent and 1 to 5 percent, decided that somewhat greater reserve restraint or respectively, measured from the fourth quarter of 1990 to the fourth quarter of 1991. The monitoring range for somewhat lesser reserve restraint might be acceptgrowth of total domestic nonfinancial debt also was able during the period ahead depending on progress maintained at4V2 to 8 V2 percent for the year. For 1992, on toward price stability, trends in economic activity, a tentative basis, the Committee agreed to use the same the behavior of the monetary aggregates, and ranges as in 1991 for growth in each of the monetary developments in foreign exchange and domestic aggregates and debt, measured from the fourth quarter of 1991 to the fourth quarter of 1992. With regard to M3, the financial markets. The reserve conditions contem- Committee anticipated that the ongoing restructuring of plated at this meeting were expected to be consistent thrift depository institutions would continue to depress with some increase in the growth of M2 and M3 to the growth of this aggregate relative to spending and total annual rates of around 5 V2 and 3 percent respectively credit. The behavior of the monetary aggregates will over the three-month period from June through continue to be evaluated in the light of progress toward September. price level stability, movements in their velocities, and developments in the economy and financial markets. At the conclusion of the meeting, the following In the implementation of policy for the immediate domestic policy directive was issued to the Federal future, the Committee seeks to maintain the existing Reserve Bank of New York: degree of pressure on reserve positions. Depending upon progress toward price stability, trends in economic The information reviewed at this meeting suggests that activity, the behavior of the monetary aggregates, and economic activity has begun to recover from the recent developments in foreign exchange and domestic financial recession. The unemployment rate rose to 6.9 percent in markets, somewhat greater reserve restraint or somewhat May, but total nonfarm payroll employment edged up and lesser reserve restraint might be acceptable in the the average workweek posted a sizable gain. Manufactur- intermeeting period. The contemplated reserve conditions ing output has risen in recent months, led by appreciable are expected to be consistent with growth of M2 and M3 increases in assemblies of motor vehicles. Consumer over the period from June through September at annual spending has been bolstered in part by an upturn in rates of about 5Vi and 3 percent, respectively. personal income. An increase in orders points to a finning in demand for business equipment, but nonresidential Votes for the paragraph on short-run policy implemenconstruction remains weak. Housing starts rose over tation: Messrs. Greenspan, Corrigan, Angell, Black, April and May. The nominal U.S. merchandise trade Forrestal, Keehn, Kelley, La Ware, Mullins, and Parry. deficit in April was somewhat below the average rate in Votes against this action: None. the first quarter. Increases in consumer prices have been small in recent months. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

809 Legal Developments FINAL RULE—AMENDMENT TO UNIFORM 106(b)(2)(F) of the Bank Holding Company Act RULES OF PRACTICE AND PROCEDURES Amendments of 1970, as amended (12 U.S.C. 1972(2)(F)); sections 7(j), 8 and 18(c) of the Federal The Board of Governors is amending 12 C.F.R. Part Deposit Insurance Act, as amended (12 U.S.C. 263. Section 916 of the Financial Institutions Reform, 1817(j), 1818 and 1828(c)); section 13 of the Interna- Recovery, and Enforcement Act of 1989 ("FIRREA") tional Banking Act of 1978 (12 U.S.C. 3108); sections requires that the Office of the Comptroller of the 15B(c)(5), 15C(c)(2), and 21B of the Securities Ex- Currency (the "OCC"), the Board of Governors of the change Act of 1984, as amended (15 U.S.C. 78o-4, Federal Reserve System (the "Board"), the Federal 78o-5, and 78u-2); section 11 of the Clayton Act, as Deposit Insurance Corporation (the "FDIC"), the amended (15 U.S.C. 21); section 203(c) of the Equal Office of Thrift Supervision (the "OTS"), and the Access to Justice Act, as amended (5 U.S.C. 504); National Credit Union Administration (the "NCUA") and sections 908 and 910 of the International Lending (collectively, the "Agencies") develop a set of uni- Supervision Act of 1983 (12 U.S.C. 3907 and 3909). form rules of practice and procedures for administrative hearings ("Uniform Rules"). Section 916 further 2. Part 263 is revised to read as follows: requires that the Agencies promulgate provisions for summary judgment rulings where there are no disputes Subpart A- •Uniform Rules of Practice and as to the material facts of a case. Procedure In compliance with the mandate of section 916, this final rule makes uniform those rules concerning the types of formal enforcement actions common to at Table of Contents least four of the listed Agencies. In addition to these Uniform Rules, the Board and each of the other Section 263.1 Scope. Agencies are adopting complementary "Local Rules" Section 263.2 Rules of construction. to supplement the Uniform Rules in order to address Section 263.3 Definitions. some or all of the following: formal enforcement Section 263.4 Authority of the Board. actions not within the scope of the Uniform Rules, Section 263.5 Authority of the administrative law informal actions which are not subject to the Admin- judge. istrative Procedure Act ("APA"), and procedures to Section 263.6 Appearance and practice in adjudisupplement or facilitate the processing of administra- catory proceedings. tive enforcement actions within the Board and the Section 263.7 Good faith certification. other Agencies. This final rule is intended to standard- Section 263.8 Conflicts of interest. ize procedures for formal administrative actions and to Section 263.9 Ex parte communications. facilitate administrative practice before the Agencies. Section 263.10 Filing of papers. Effective August 9, 1991, 12 C.F.R. Part 263 is Section 263.11 Service of papers. amended as follows: Section 263.12 Construction of time limits. Section 263.13 Change of time limits. Part 263—Rules of Practice for Hearings Section 263.14 Witness fees and expenses. Section 263.15 Opportunity for informal settlement. 1. The authority citation for part 263 is revised to read Section 263.16 The Board's right to conduct examas follows: ination. Section 263.17 Collateral attacks on adjudicatory Authority: This part is issued under sections 9, ll(i), proceeding. 19 and 29 of the Federal Reserve Act (12 U.S.C. 324, Section 263.18 Commencement of proceeding and 248, 504, and 505); sections 5(b), 8(b) and 8(d) of the contents of notice. Bank Holding Company Act of 1956, as amended (12 Section 263.19 Answer. U.S.C. 1884(b), 1847(b) and 1847(d)); section Section 263.20 Amended pleadings. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

810 Federal Reserve Bulletin • October 1991 Section 263.21 Failure to appear. Subpart D—Rules and Procedures Applicable Section 263.22 Consolidation and severance of ac- to Suspension of Removal of an tions. Institution-Affiliated Party Where a Felony is Section 263.23 Motions. Charged or Proven Section 263.24 Scope of document discovery. Section 263.25 Request for document discovery Section 263.70 Purpose and scope. from parties. Section 263.71 Notice of order of suspension, re- Section 263.26 Document subpoenas to nonparties. moval, or prohibition. Section 263.27 Deposition of witness unavailable Section 263.72 Request for informal hearing. for hearing. Section 263.73 Order for informal hearing. Section 263.28 Interlocutory review. Section 263.74 Decision of the Board. Section 263.29 Summary disposition. Section 263.30 Partial summary disposition. Subpart Er—Procedures for Issuance and Section 263.31 Scheduling and prehearing confer- Enforcement of Directives to Maintain ences. Adequate Capital Section 263.32 Prehearing submissions. Section 263.33 Public hearings. Section 263.80 Purpose and scope. Section 263.34 Hearing subpoenas. Section 263.81 Definitions. Section 263.35 Conduct of hearings. Section 263.82 Establishment of minimum capital Section 263.36 Evidence. levels. Section 263.37 Proposed findings and conclusions. Section 263.83 Issuance of capital directives. Section 263.38 Recommended decision and filing of Section 263.84 Enforcement of directive. record. Section 263.85 Establishment of increased capital Section 263.39 Exceptions to recommended deci- level for specific institutions. sion. Section 263.40 Review by the Board. Subpart F—Practice Before the Board Section 263.41 Stays pending judicial review. Section 263.90 Scope. Section 263.91 Censure, suspension or debarment. Section 263.92 Definitions. Subpart B—Board Local Rules Supplementing Section 263.93 Eligibility to practice. the Uniform Rules Section 263.94 Conduct warranting sanctions. Section 263.95 Initiation of disciplinary proceed- Section 263.50 Purpose and scope. ing. Section 263.51 Definitions. Section 263.96 Conferences. Section 263.52 Address for filing. Section 263.97 Proceedings under this subpart. Section 263.53 Discovery depositions. Section 263.98 Effect of suspension, debarment or Section 263.54 Delegation to the Office of Financial censure. Institution Adjudication. Section 263.99 Petition for reinstatement. Section 263.55 Board as Presiding Officer Section 263.56 Initial Licensing Proceedings Subpart G—Rules Regarding Claims Under the Equal Access to Justice Act Section 263.100 Authority and scope. Subpart C—Rules and Procedures for Section 263.101 Standards for awards. Assessment and Collection of Civil Money Section 263.102 Prevailing party. Penalties Section 263.103 Eligibility of applicants. Section 263.104 Application for awards. Section 263.60 Scope. Section 263.105 Statement of net worth. Section 263.61 Opportunity for informal proceed- Section 263.106 Measure of awards. ing. Section 263.107 Statement of fees and expenses. Section 263.62 Relevant considerations for assess- Section 263.108 Responses to application. ment of civil penalty. Section 263.109 Further proceedings. Section 263.63 Assessment order. Section 263.110 Recommended decision. Section 263.64 Payment of civil penalty. Section 263.111 Action by the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 811 Subpart A—Uniform Rules of Practice and lation or order issued thereunder, pursuant to Procedure 12 U.S.C. 3909; (7) Any provision of the International Banking Act of 1978 ("IBA") or any rule, regulation or order issued thereunder, pursuant to 12 U.S.C. 3108; Section 263.1—Scope. (8) Certain provisions of the Exchange Act, pursuant to section 21B of the Exchange Act (15 U.S.C. This subpart prescribes Uniform Rules of practice and 78u-2); procedure applicable to adjudicatory proceedings re- (9) Section 1120 of the Financial Institutions Required to be conducted on the record after opportunity form, Recovery, and Enforcement Act of 1989 for hearing under the following statutory provisions: (12 U.S.C. 3349), or any order or regulation issued thereunder; and (a) Cease-and-desist proceedings under section 8(b) (10) The terms of any final or temporary order issued of the Federal Deposit Insurance Act ("FDIA") under section 8 of the FDIA or of any written (12 U.S.C. 1818(b)); agreement executed by the Board, the terms of any (b) Removal and prohibition proceedings under sec- condition imposed in writing by the Board in contion 8(e) of the FDIA (12 U.S.C. 1818(e)); nection with the grant of an application or request, (c) Change-in-control proceedings under section 7(j)(4) and certain unsafe or unsound practices or breaches of the FDIA (12 U.S.C. 1817(j)(4)) to determine of fiduciary duty or law or regulation pursuant to whether the Board of Governors of the Federal Re- 12 U.S.C. 1818(i)C2>; serve System ("Board") should issue an order to (f) This subpart also applies to all other adjudications approve or disapprove a person's proposed acquisition required by statute to be determined on the record of a state member bank or bank holding company; after opportunity for an agency hearing, unless other- (d) Proceedings under section 15C(c)(2) of the Securi- wise specifically provided in subparts B-G of this part. ties Exchange Act of 1934 ("Exchange Act") (15 U.S.C. 78o-5), to impose sanctions upon any Section 263.2—Rules of construction. government securities broker or dealer or upon any person associated or seeking to become associated For purposes of this subpart: with a government securities broker or dealer for which the Board is the appropriate agency. (a) Any term in the singular includes the plural, and the (e) Assessment of civil money penalties by the Board plural includes the singular, if such use would be against institutions, institution-affiliated parties, and appropriate; certain other persons for which the Board is the (b) Any use of a masculine, feminine, or neuter gender appropriate agency for any violation of: encompasses all three, if such use would be appropri- (1) Any provision of the Bank Holding Company ate; Act of 1956, as amended ("BHC Act"), or any order (c) The term counsel includes a non-attorney repreor regulation issued thereunder, pursuant to sentative; and 12 U.S.C. 1847(b) and (d); (d) Unless the context requires otherwise, a party's (2) Sections 19, 22, 23A and 23B of the Federal counsel of record, if any, may, on behalf of that party, Reserve Act ("FRA"), or any regulation or order take any action required to be taken by the party. issued thereunder and certain unsafe or unsound practices or breaches of fiduciary duty, pursuant to Section 263.3—Definitions. 12 U.S.C. 504 and 505; (3) Section 9 of the FRA pursuant to 12 U.S.C. 324; For purposes of this subpart, unless explicitly stated to (4) Section 106(b) of the Bank Holding Company the contrary: Act Amendments of 1970 and certain unsafe or unsound practices or breaches of fiduciary duty, (a) Administrative law judge means one who presides pursuant to 12 U.S.C. 1972(2)(F); at an administrative hearing under authority set forth (5) Any provision of the Change in Bank Control Act at 5 U.S.C. 556. of 1978, as amended, or any regulation or order (b) Adjudicatory proceeding means a proceeding conissued thereunder and certain unsafe or unsound ducted pursuant to these rules and leading to the practices or breaches of fiduciary duty, pursuant to formulation of a final order other than a regulation, 12 U.S.C. 1817(j)(16); (c) Decisional employee means any member of the (6) Any provision of the International Lending Su- Board's or administrative law judge's staff who has not pervision Act of 1983 ("ILSA") or any rule, regu- engaged in an investigative or prosecutorial role in a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

812 Federal Reserve Bulletin • October 1991 proceeding and who may assist the Agency or the Section 263.4—Authority of the Board. administrative law judge, respectively, in preparing orders, recommended decisions, decisions, and other (a) The Board may, at any time during the pendency of documents under the Uniform Rules. a proceeding, perform, direct the performance of, or (d) Enforcement Counsel means any individual who waive performance of, any act which could be done or files a notice of appearance as counsel on behalf of the ordered by the administrative law judge. Board in an adjudicatory proceeding. (e) Final order means an order issued by the Board Section 263.5—Authority of the administrative with or without the consent of the affected institution law judge. or the institution-affiliated party, that has become final, without regard to the pendency of any petition (a) General rule. All proceedings governed by this part for reconsideration or review. shall be conducted in accordance with the provisions (f) Institution includes: of Chapter 5 of Title 5 of the United States Code. The (1) Any bank as that term is defined in section 3(a) of administrative law judge shall have all powers necesthe FDIA (12 U.S.C. 1813(a)); sary to conduct a proceeding in a fair and impartial (2) Any bank holding company or any subsidiary manner and to avoid unnecessary delay. (other than a bank) of a bank holding company as (b) Powers. The administrative law judge shall have all those terms are defined in the BHC Act (12 U.S.C. powers necessary to conduct the proceeding in accor- 1841 et seq.)\ dance with paragraph (a) of this section, including the (3) Any organization operating under section 25 of following powers: the FRA (12 U.S.C. 601 et seq.)\ (1) To administer oaths and affirmations; (4) Any foreign bank or company to which section 8 (2) To issue subpoenas, subpoenas duces tecum, of the IBA (12 U.S.C. 3106), applies or any subsidand protective orders, as authorized by this part, iary (other than a bank) thereof; and and to quash or modify any such subpoenas and (5) Any Federal agency as that term is defined in orders; section 1(b) of the IBA (12 U.S.C. 3101(5)). (3) To receive relevant evidence and to rule upon the (g) Institution-affiliated party means any institutionadmission of evidence and offers of proof; affiliated party as that term is defined in section 3(u) of (4) To take or cause depositions to be taken as the FDIA (12 U.S.C. 1813(u)). authorized by this subpart; (h) Local Rules means those rules promulgated by the (5) To regulate the course of the hearing and the Board in this part other than subpart A. conduct of the parties and their counsel; (i) OFIA means the Office of Financial Institution (6) To hold scheduling and/or pre-hearing confer- Adjudication, the executive body charged with over- ences as set forth in section 263.31; seeing the administration of administrative enforce- (7) To consider and rule upon all procedural and ment proceedings for the Board, the Office of Comp- other motions appropriate in an adjudicatory protroller of the Currency (the "OCC"), the Federal ceeding, provided that only the Board shall have the Deposit Insurance Corporation (the "FDIC"), the power to grant any motion to dismiss the proceeding Office of Thrift Supervision (the "OTS"), and the or to decide any other motion that results in a final National Credit Union Administration (the determination of the merits of the proceeding; "NCUA"). (8) To prepare and present to the Board a recom- (j) Party means the Board and any person named as a mended decision as provided herein; party in any notice. (9) To recuse himself or herself by motion made by (k) Person means an individual, sole proprietor, part- a party or on his or her own motion; nership, corporation, unincorporated association, (10) To establish time, place and manner limitations trust, joint venture, pool, syndicate, agency or other on the attendance of the public and the media for entity or organization, including an institution as deany public hearing; and fined in paragraph (h) of this section. (11) To do all other things necessary and appropriate (1) Respondent means any party other than the Board, to discharge the duties of a presiding officer. (m) Uniform Rules means those rules in subpart A of this part that are common to the Board, the OCC, the Section 263.6—Appearance and practice in FDIC, the OTS and the NCUA. adjudicatory proceedings. (n) Violation includes any action (alone or with another or others) for or toward causing, bringing about, participating in, counseling, or aiding or abetting a (a) Appearance before the Board or an administrative violation. law judge. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 813 (1) By attorneys. Any member in good standing of made for any improper purpose, such as to harass or the bar of the highest court of any state, common- to cause unnecessary delay or needless increase in wealth, possession, territory of the United States, or the cost of litigation. the District of Columbia may represent others be- (2) If a filing or submission of record is not signed, fore the Board if such attorney is not currently the administrative law judge shall strike the filing or suspended or debarred from practice before the submission of record, unless it is signed promptly Board. after the omission is called to the attention of the (2) By non-attorneys. An individual may appear on pleader or movant, his or her own behalf; a member of a partnership (c) Effect of making oral motion or argument. The act may represent the partnership; a duly authorized of making any oral motion or oral argument by any officer, director, or employee of any government counsel or party constitutes a certification that to the unit, agency, institution, corporation or authority best of his or her knowledge, information, and belief may represent that unit, agency, institution, corpo- formed after reasonable inquiry, his or her statement is ration or authority if such officer, director, or em- well-grounded in fact and is warranted by existing law ployee is not currently suspended or debarred from or a good faith argument for the extension, modificapractice before the Board. tion, or reversal of existing law, and is not made for (3) Notice of appearance. Any individual acting as any improper purpose, such as to harass or to cause counsel on behalf of a party, including the Board, unnecessary delay or needless increase in the cost of shall file a notice of appearance with OFIA at or litigation. before the time that individual submits papers or otherwise appears on behalf of a party in the adjudicatory proceeding. Such notice of appearance Section 263.8—Conflicts of interest. shall include a written declaration that the individual is currently qualified as provided in paragraph (a)(1) or (a)(2) of this section and is authorized to repre- (a) Conflict of interest in representation. No person sent the particular party. By filing a notice of ap- shall appear as counsel for another person in an pearance on behalf of a party in an adjudicatory adjudicatory proceeding if it reasonably appears that proceeding, the counsel thereby agrees, and repre- such representation may be materially limited by that sents that he or she is authorized, to accept service counsel's responsibilities to a third person or by the on behalf of the represented party. counsel's own interests. The administrative law judge (b) Sanctions. Dilatory, obstructionist, egregious, con- may take corrective measures at any stage of a protemptuous or contumacious conduct at any phase of ceeding to cure a conflict of interest in representation, any adjudicatory proceeding may be grounds for ex- including the issuance of an order limiting the scope of clusion or suspension of counsel from the proceeding. representation or disqualifying an individual from appearing in a representative capacity for the duration of Section 263.7—Good faith certification. the proceeding. (b) Certification and waiver. If any person appearing (a) General requirement. Every filing or submission of as counsel represents two or more parties to an record following the issuance of a notice shall be adjudicatory proceeding or a party and an institution signed by at least one counsel of record in his or her to which notice of the proceeding must be given, individual name and shall state that counsel's address counsel must certify in writing at the time of filing the and telephone number. A party who acts as his or her notice of appearance required by section 263.6(a): own counsel shall sign his or her individual name and (1) That the counsel has personally and fully disstate his or her address and telephone number on cussed the possibility of conflicts of interest with every filing or submission of record. each such party or institution; (b) Effect of signature. (2) That each such party or institution has advised (1) The signature of counsel or a party shall consti- its counsel that to its knowledge there is no existing tute a certification that: the counsel or party has or anticipated material conflict between its interests read the filing or submission of record; to the best of and the interests of others represented by the same his or her knowledge, information, and belief counsel or his or her firm; and formed after reasonable inquiry, the filing or sub- (3) That each such party or institution waives any mission of record is well-grounded in fact and is right it might otherwise have had to assert any warranted by existing law or a good faith argument known conflicts of interest or to assert any nonfor the extension, modification, or reversal of exist- material conflicts of interest during the course of the ing law; and the filing or submission of record is not proceeding. 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814 Federal Reserve Bulletin • October 1991 Section 263.9—Ex parte communications. quest pursuant to sections 263.25 and 263.26, shall be filed with OFIA, except as otherwise provided. (a) Definition. (b) Manner of filing. Unless otherwise specified by the (1) Ex parte communication means any material oral Board or the administrative law judge, filing may be or written communication concerning the merits of accomplished by: an adjudicatory proceeding that was neither on the (1) Personal service; record nor on reasonable prior notice to all parties (2) Delivering the papers to a reliable commercial that takes place between: courier service, overnight delivery service, or to the (i) A party, his or her counsel, or another person U.S. Post Office for Express Mail delivery; interested in the proceeding; and (3) Mailing the papers by first class, registered, or (ii) The administrative law judge handling that certified mail; or proceeding, a member of the Board, or a deci- (4) Transmission by electronic media, only if exsional employee. pressly authorized, and upon any conditions speci- (2) Exception. A request for status of the proceeding fied, by the Board or the administrative law judge. does not constitute an ex parte communication. All papers filed by electronic media shall also con- (b) Prohibition of ex parte communications. From the currently be filed in accordance with paragraph (c) time the notice is issued by the Board until the date of this section. that the Board issues its final decision pursuant to (c) Formal requirements as to papers filed. section 263.40(c), no party, interested person or coun- (1) Form. All papers filed must set forth the name, sel therefor shall knowingly make or cause to be made address, and telephone number of the counsel or an ex parte communication concerning the merits of party making the filing and must be accompanied by the proceeding to a member of the Board, the admin- a certification setting forth when and how service istrative law judge, or a decisional employee. No has been made on all other parties. All papers filed member of the Board, administrative law judge, or must be double-spaced and printed or typewritten decisional employee shall knowingly make or cause to on Wi x 11 inch paper, and must be clear and be made to a party, or any interested person or counsel legible. therefor, any ex parte communication relevant to the (2) Signature. All papers must be dated and signed merits of a proceeding. as provided in section 263.7. (c) Procedure upon occurrence of ex parte communi- (3) Caption. All papers filed must include at the cation. If an ex parte communication is received by the head thereof, or on a title page, the name of the administrative law judge, a member of the Board or any Board and of the filing party, the title and docket other person identified in paragraph (a) of this section, number of the proceeding, and the subject of the that person shall cause all such written communications particular paper. (or, if the communication is oral, a memorandum stat- (4) Number of copies. Unless otherwise specified by ing the substance of the communication) to be placed the Board, or the administrative law judge, an on the record of the proceeding and served on all original and one copy of all documents and papers parties. All other parties to the proceeding shall have an shall be filed, except that only one copy of tranopportunity, within ten days of receipt of service of the scripts of testimony and exhibits shall be filed. ex parte communication, to file responses thereto and to recommend any sanctions, in accordance with para- Section 263.11—Service of papers. graph (d) of this section, that they believe to be appropriate under the circumstances. (d) Sanctions. Any party or his or her counsel who (a) By the parties. Except as otherwise provided, a makes a prohibited ex parte communication, or who party filing papers shall serve a copy upon the encourages or solicits another to make any such com- counsel of record for all other parties to the proceedmunication, may be subject to any appropriate sanction ing so represented, and upon any party not so or sanctions imposed by the Board or the administra- represented. tive law judge including, but not limited to, exclusion (b) Method of service. Except as provided in parafrom the proceedings and an adverse ruling on the issue graphs (c)(2) and (d) of this section, a serving party which is the subject of the prohibited communication. shall use one or more of the following methods of service: Section 263.10—Filing of papers. (1) Personal service; (2) Delivering the papers to a reliable commercial (a) Filing. Any papers required to be filed, excluding courier service, overnight delivery service, or to the documents produced in response to a discovery re- U.S. Post Office for Express Mail delivery; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 815 (3) Mailing the papers by first class, registered, or Federal holiday. Intermediate Saturdays, Sundays, certified mail; or and Federal holidays are included in the computation (4) Transmission by electronic media, only if the of time, except that, when the time period within parties mutually agree. Any papers served by elec- which an act is to be performed is ten days or less, tronic media shall also concurrently be served in intermediate Saturdays, Sundays, and Federal holiaccordance with the requirements of section days are not included. 263.10(c). (b) When papers are deemed to be filed or served. (c) By the Board or the administrative law judge. (1) Filing and service are deemed to be effective: (1) All papers required to be served by the Board or (i) In the case of personal service or same-day the administrative law judge upon a party who has commercial courier delivery, upon actual service; appeared in the proceeding in accordance with (ii) In the case of overnight commercial delivery section 263.6, shall be served by any means speci- service, U.S. Express Mail delivery, or first fied in paragraph (b) of this section. class, registered, or certified mail, upon deposit (2) If a party has not appeared in the proceeding in in or delivery to an appropriate point of collecaccordance with section 263.6, the Board or the tion; administrative law judge shall make service by any (iii) In the case of transmission by electronic of the following methods: media, as specified by the authority receiving the (i) By personal service; filing, in the case of filing, and as agreed among (ii) By delivery to a person of suitable age and the parties, in the case of service. discretion at the party's residence; (2) The effective filing and service dates specified in (iii) By registered or certified mail addressed to paragraph (b)(1) of this section may be modified by the party's last known address; or the Board or administrative law judge in the case of (iv) By any other method reasonably calculated to filing or by agreement of the parties in the case of give actual notice. service. (d) Subpoenas. Service of a subpoena may be made by (c) Calculation of time for service and filing of responpersonal service, by delivery to an agent, by delivery sive papers. Whenever a time limit is measured by a to a person of suitable age and discretion at the prescribed period from the service of any notice or subpoenaed person's residence, by registered or cer- paper, the applicable time limits are calculated as tified mail addressed to the person's last known ad- follows: dress, or in such other manner as is reasonably calcu- (1) If service is made by first class, registered or lated to give actual notice. certified mail, add three days to the prescribed (e) Area of service. Service in any state, territory, period; possession of the United States, or the District of (2) If service is made by express mail or overnight Columbia, on any person or company doing business delivery service, add one day to the prescribed in any state, territory, possession of the United States, period; or the District of Columbia, or on any person as (3) If service is made by electronic media transmisotherwise provided by law, is effective without regard sion, add one day to the prescribed period, unless to the place where the hearing is held, provided that if otherwise determined by the Board or the adminisservice is made on a foreign bank in connection with trative law judge in the case of filing, or by agreean action or proceeding involving one or more of its ment among the parties in the case of service. branches or agencies located in any state, territory, possession of the United States, or the District of Section 263.13—Change of time limits. Columbia, service shall be made on at least one branch or agency so involved. (a) Except as otherwise provided by law, the admin- Section 263.12—Construction of time limits. istrative law judge may, for good cause shown, extend the time limits prescribed by the Uniform Rules or by (a) General rule. In computing any period of time any notice or order issued in the proceedings. After prescribed by this subpart, the date of the act or the referral of the case to the Board pursuant to event from which the designated period of time section 263.38, the Board may grant extensions of the begins to run is not included. The last day so time limits for good cause shown. Extensions may be computed is included unless it is a Saturday, Sunday, granted at the motion of a party after notice and or Federal holiday. When the last day is a Saturday, opportunity to respond is afforded all non-moving Sunday, or Federal holiday, the period runs until the parties or sua sponte by the Board or the administraend of the next day that is not a Saturday, Sunday, or tive law judge. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

816 Federal Reserve Bulletin • October 1991 Section 263.14—Witness fees and expenses. Section 263.18—Commencement of proceeding and contents of notice. (a) Witnesses subpoenaed for testimony or depositions shall be paid the same fees for attendance and mileage (a) Commencement of proceeding. as are paid in the United States district courts in (1) (i) Except for change-in-control proceedings unproceedings in which the United States is a party, der section 7(j)(4) of the FDIA, 12 U.S.C. provided that, in the case of a discovery subpoena 1817(j)(4), a proceeding governed by this subpart addressed to a party, no witness fees or mileage need is commenced by issuance of a notice by the be paid. Fees for witnesses shall be tendered in Board. advance by the party requesting the subpoena, except (ii) The notice must be served by the Board upon that fees and mileage need not be tendered in advance the respondent and given to any other appropriate where the Board is the party requesting the subpoena. financial institution supervisory authority where The Board shall not be required to pay any fees to, or required by law. expenses of, any witness not subpoenaed by the (iii) The notice must be filed with OFIA. Board. (2) Change-in-control proceedings under section 7(j)(4) of the FDIA (12 U.S.C. 1817(j)(4)) com- Section 263.15—Opportunity for informal mence with the issuance of an order by the Board. settlement. (b) Contents of notice. The notice must set forth: (1) The legal authority for the proceeding and for the Board's jurisdiction over the proceeding; (a) Any respondent may, at any time in the proceed- (2) A statement of the matters of fact or law showing ing, unilaterally submit to Enforcement Counsel writthat the Board is entitled to relief; ten offers or proposals for settlement of a proceeding, (3) A proposed order or prayer for an order granting without prejudice to the rights of any of the parties. No the requested relief; such offer or proposal shall be made to any Board (4) The time, place, and nature of the hearing as representative other than Enforcement Counsel. Subrequired by law or regulation; mission of a written settlement offer does not provide a basis for adjourning or otherwise delaying all or any (5) The time within which to file an answer as portion of a proceeding under this part. No settlement required by law or regulation; offer or proposal, or any subsequent negotiation or (6) The time within which to request a hearing as resolution, is admissible as evidence in any proceed- required by law or regulation; and ing. (7) That the answer and/or request for a hearing shall be filed with OFIA. Section 263.16—Agency's right to conduct Section 263.19—Answer. examination. (a) When. Within 20 days of service of the notice, (a) Nothing contained in this subpart limits in any respondent shall file an answer as designated in the manner the right of the Board or any Federal Reserve notice. In a civil money penalty proceeding, respon- Bank to conduct any examination, inspection, or visdent shall also file a request for a hearing within 20 itation of any institution or institution-affiliated party, days of service of the notice. or the right of the Agency to conduct or continue any (b) Content of answer. An answer must specifically form of investigation authorized by law. respond to each paragraph or allegation of fact contained in the notice and must admit, deny, or state that Section 263.17—Collateral attacks on the party lacks sufficient information to admit or deny adjudicatory proceeding. each allegation of fact. A statement of lack of information has the effect of a denial. Denials must fairly (a) If an interlocutory appeal or collateral attack is meet the substance of each allegation of fact denied; brought in any court concerning all or any part of an general denials are not permitted. When a respondent adjudicatory proceeding, the challenged adjudicatory denies part of an allegation, that part must be denied proceeding shall continue without regard to the pen- and the remainder specifically admitted. Any allegadency of that court proceeding. No default or other tion of fact in the notice which is not denied in the failure to act as directed in the adjudicatory proceed- answer must be deemed admitted for purposes of the ing within the times prescribed in this subpart shall be proceeding. A respondent is not required to respond to excused based on the pendency before any court of the portion of a notice that constitutes the prayer for any interlocutory appeal or collateral attack. relief or proposed order. The answer must set forth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 817 affirmative defenses, if any, asserted by the respon- Section 263.21—Failure to appear. dent. (c) Default. (a) Failure of a respondent to appear in person at the (1) Effect of failure to answer. Failure of a respon- hearing or by a duly authorized counsel constitutes a dent to file an answer required by this section within waiver of respondent's right to a hearing and is the time provided constitutes a waiver of his or her deemed an admission of the facts as alleged and right to appear and contest the allegations in the consent to the relief sought in the notice. Without notice. If no timely answer is filed, Enforcement further proceedings or notice to the respondent, the Counsel may file a motion for entry of an order of administrative law judge shall file with the Board a default. Upon a finding that no good cause has been recommended decision containing the findings and the shown for the failure to file a timely answer, the relief sought in the notice. administrative law judge shall file with the Board a recommended decision containing the findings and Section 263.22—Consolidation and severance the relief sought in the notice. Any final order issued of actions. by the Board based upon a respondent's failure to answer is deemed to be an order issued upon con- (a) Consolidation. sent. (1) On the motion of any party, or on the adminis- (2) Effect of failure to request a hearing in civil trative law judge's own motion, the administrative money penalty proceedings. If respondent fails to law judge may consolidate, for some or all purposes, request a hearing as required by law within the time any two or more proceedings, if each such proceedprovided, the notice of assessment constitutes a ing involves or arises out of the same transaction, final and unappealable order. occurrence or series of transactions or occurrences, or involves at least one common respondent or a material common question of law or fact, unless such consolidation would cause unreasonable delay Section 263.20—Amended pleadings. or injustice. (2) In the event of consolidation under paragraph (a)(1) of this section, appropriate adjustment to the (a) Amendments. The notice or answer may be prehearing schedule shall be made to avoid unnecamended or supplemented at any stage of the pro- essary expense, inconvenience, or delay. ceeding by leave of the administrative law judge. (b) Severance. The administrative law judge may, Such leave will be freely given. The respondent shall upon the motion of any party, sever the proceeding for answer an amended notice within the time remaining separate resolution of the matter as to any respondent for the respondent's answer to the original notice, or only if the administrative law judge finds that: within ten days after service of the amended notice, (1) Undue prejudice or injustice to the moving party whichever period is longer, unless the Board or would result from not severing the proceeding; and administrative law judge orders otherwise for good (2) Such undue prejudice or injustice would outcause shown. weigh the interests of judicial economy and expedi- (b) Amendments to conform to the evidence. When tion in the complete and final resolution of the issues not raised in the notice or answer are tried at the proceeding. hearing by express or implied consent of the parties, they will be treated in all respects as if they had been Section 263.23—Motions. raised in the notice or answer, and no formal amendments are required. If evidence is objected to at the (a) In writing. hearing on the ground that it is not within the issues (1) Except as otherwise provided herein, an appliraised by the notice or answer, the administrative law cation or request for an order or ruling must be made judge may allow the notice or answer to be amended. by written motion. The administrative law judge will do so freely when (2) All written motions must state with particularity the determination of the merits of the action is served the relief sought and must be accompanied by a thereby and the objecting party fails to satisfy the proposed order. administrative law judge that the admission of such (3) No oral argument may be held on written moevidence would unfairly prejudice that party's action tions except as otherwise directed by the adminisor defense upon the merits. The administrative law trative law judge. Written memoranda, briefs, affijudge may grant a continuance to enable the objecting davits or other relevant material or documents may party to meet such evidence. be filed in support of or in opposition to a motion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

818 Federal Reserve Bulletin • October 1991 (b) Oral motions. A motion may be made orally on the (d) Time limits. All discovery, including all responses record unless the administrative law judge directs that to discovery requests, shall be completed at least 20 such motion be reduced to writing. days prior to the date scheduled for the commence- (c) Filing of motions. Motions must be filed with the ment of the hearing. No exceptions to this time limit administrative law judge, except that following the shall be permitted, unless the administrative law judge filing of the recommended decision, motions must be finds on the record that good cause exists for waiving filed with the Board. the requirements of this paragraph. (d) Responses. (1) Except as otherwise provided herein, within ten Section 263.25—Request for document days after service of any written motion, or within discovery from parties. such other period of time as may be established by the administrative law judge or the Board, any party (a) General rule. Any party may serve on any other may file a written response to a motion. The admin- party a request to produce for inspection any discoveristrative law judge shall not rule on any oral or able documents which are in the possession, custody, written motion before each party has had an oppor- or control of the party upon whom the request is served. tunity to file a response. The request must identify the documents to be produced (2) The failure of a party to oppose a written motion either by individual item or by category, and must deor an oral motion made on the record is deemed a scribe each item and category with reasonable particularconsent by that party to the entry of an order ity. Documents must be produced as they are kept in the substantially in the form of the order accompanying usual course of business and shall be organized to correthe motion. spond with the categories in the request. (e) Dilatory motions. Frivolous, dilatory or repetitive (b) Production or copying. The request must specify a motions are prohibited. The filingo f such motions may reasonable time, place, and manner for production and form the basis for sanctions. performing any related acts. In lieu of inspecting the (f) Dispositive motions. Dispositive motions are gov- documents, the requesting party may specify that all erned by sections 263.29 and 263.30. or some of the responsive documents are to be copied and the copies delivered to the requesting party. If Section 263.24—Scope of document discovery. copying of fewer than 250 pages is requested, the party to whom the request is addressed shall bear the cost of (a) Limits on discovery. copying and shipping charges. If more than 250 pages (1) Parties to proceedings under this subpart may of copying is requested, the requesting party shall pay obtain document discovery through the production of for copying, unless the parties agree otherwise, at the documents, including writings, drawings, graphs, current per-page copying rate imposed by the Board's charts, photographs, recordings, and other data compi- rules implementing the Freedom of Information Act lations from which information can be obtained, or (5 U.S.C. 552a) plus the cost of shipping. translated, if necessary, by the parties through detec- (c) Obligation to update responses. A party who has tion devices into reasonably usable form. responded to a discovery request with a response that (2) Discovery by use of deposition is governed by was complete when made is not required to supplesection 263.53 of subpart B of this part. ment the response to include documents thereafter (b) Relevance. Parties may obtain document discovery acquired, unless the responding party learns that: regarding any matter, not privileged, which has mate- (1) The response was materially incorrect when rial relevance to the merits of the pending action. It is made ; or not a ground for objection that the information sought (2) The response, though correct when made, is no will be inadmissible at the hearing if the information longer true and a failure to amend the response is, in sought appears reasonably calculated to lead to dis- substance, a knowing concealment. covery of admissible evidence. The request may not (d) Motions to limit discovery. be unreasonable, oppressive, excessive in scope or (1) Any party that objects to a discovery request unduly burdensome. may, within ten days of being served with such (c) Privileged matter. Privileged documents are not request, file a motion in accordance with the providiscoverable. Privileges include the attorney-client sions of section 263.23 to strike or otherwise limit privilege, work-product privilege, any government's the request. If an objection is made to only a portion or government agency's deliberative-process privi- of an item or category in a request, the portion lege, and any other privileges the Constitution, any objected to shall be specified. Any objections not applicable act of Congress, or the principles of com- made in accordance with this paragraph and section mon law provide. 263.23 are waived. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 819 (2) The party who served the request that is the tain a proposed document subpoena and a brief subject of a motion to strike or limit may file a statement showing the general relevance and reawritten response within five days of service of the sonableness of the scope of documents sought. The motion. No other party may file a response. subpoenaing party shall specify a reasonable time, (e) Privilege. At the time other documents are pro- place, and manner for making production in reduced, all documents withheld on the grounds of sponse to the document subpoena. privilege must be reasonably identified, together with a (2) A party shall only apply for a document substatement of the basis for the assertion of privilege. poena under this section within the time period (f) Motions to compel production. during which such party could serve a discovery (1) If a party withholds any documents as privileged request under section 263.24(d). The party obtaining or fails to comply fully with a discovery request, the the document subpoena is responsible for serving it requesting party may, within ten days of the asser- on the subpoenaed person and for serving copies on tion of privilege or of the time the failure to comply all parties. Document subpoenas may be served in becomes known to the requesting party, file a mo- any state, territory, or possession of the United tion in accordance with the provisions of section States, the District of Columbia, or as otherwise 263.23 for the issuance of a subpoena compelling provided by law. production. (3) The administrative law judge shall promptly (2) The party who asserted the privilege or failed to issue any document subpoena requested pursuant to comply with the request may file a written response this section. If the administrative law judge deterto a motion to compel within five days of service of mines that the application does not set forth a valid the motion. No other party may file a response. basis for the issuance of the subpoena, or that any of (g) Ruling on motions. After the time for filing re- its terms are unreasonable, oppressive, excessive in sponses pursuant to this section has expired, the scope, or unduly burdensome, he or she may refuse administrative law judge shall rule promptly on all to issue the subpoena or may issue it in a modified motions filed pursuant to this section. If the adminis- form upon such conditions as may be consistent trative law judge determines that a discovery request, with the Uniform Rules. or any of its terms, is unreasonable, unduly burden- (b) Motion to quash or modify. some, excessive in scope, repetitive of previous re- (1) Any person to whom a document subpoena is quests or seeks to obtain privileged documents, he or directed may file a motion to quash or modify such she may modify the request, and may issue appropri- subpoena, accompanied by a statement of the basis ate protective orders, upon such conditions as justice for quashing or modifying the subpoena. The momay require. The pendency of a motion to strike or vant shall serve the motion on all parties, and any limit discovery or to compel production shall not be a party may respond to such motion within ten days of basis for staying or continuing the proceeding, unless service of the motion. otherwise ordered by the administrative law judge. (2) Any motion to quash or modify a document (h) Enforcing discovery subpoenas. If the administra- subpoena must be filed on the same basis, including tive law judge issues a subpoena compelling produc- the assertion of privilege, upon which a party could tion of documents by a party, the subpoenaing party object to a discovery request under section may, in the event of noncompliance and to the extent 263.25(d), and during the same time limits during authorized by applicable law, apply to any appropriate which such an objection could be filed. United States district court for an order requiring (c) Enforcing document subpoenas. If a subpoenaed compliance with the subpoena. A party's right to seek person fails to comply with any subpoena issued court enforcement of a subpoena shall not in any pursuant to this section or any order of the adminismanner limit the sanctions that may be imposed by the trative law judge which directs compliance with all or administrative law judge against a party who fails to any portion of a document subpoena, the subpoenaing produce subpoenaed documents. party or any other aggrieved party may, to the extent authorized by applicable law, apply to an appropriate Section 263.26—Document subpoenas to United States district court for an order requiring nonparties. compliance with so much of the document subpoena as the administrative law judge has not quashed or modified. A party's right to seek court enforcement of (a) General rules. a document subpoena shall in no way limit the sanc- (1) Any party may apply to the administrative law tions that may be imposed by the administrative law judge for the issuance of a document discovery judge on a party who induces a failure to comply with subpoena addressed to any person who is not a subpoenas issued under this section. party to the proceeding. The application must con- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

820 Federal Reserve Bulletin • October 1991 Section 263.27—Deposition of witness (1) The witness and any party who has not had an unavailable for hearing. opportunity to oppose a deposition subpoena issued under this section may file a motion with the admin- (a) General rules. istrative law judge to quash or modify the subpoena (1) If a witness will not be available for the hearing, prior to the time for compliance specified in the a party desiring to preserve that witness's testimony subpoena, but not more than ten days after service for the record may apply in accordance with the of the subpoena. procedures set forth in paragraph (a)(2) of this (2) A statement of the basis for the motion to quash section, to the administrative law judge for the or modify a subpoena issued under this section must issuance of a subpoena, including a subpoena duces accompany the motion. The motion must be served tecum, requiring the attendance of the witness at a on all parties. deposition. The administrative law judge may issue (c) Procedure upon deposition. a deposition subpoena under this section upon a (1) Each witness testifying pursuant to a deposition showing that: subpoena must be duly sworn, and each party shall (i) The witness will be unable to attend or may be have the right to examine the witness. Objections to prevented from attending the hearing because of questions or documents must be in short form, age, sickness or infirmity, or will otherwise be stating the grounds for the objection. Failure to unavailable; object to questions or documents is not deemed a (ii) The witness's unavailability was not procured waiver except where the ground for the objection or caused by the subpoenaing party; might have been avoided if the objection had been (iii) The testimony is reasonably expected to be timely presented. All questions, answers, and objecmaterial; and tions must be recorded. (iv) Taking the deposition will not result in any (2) Any party may move before the administrative undue burden to any other party and will not law judge for an order compelling the witness to cause undue delay of the proceeding. answer any questions the witness has refused to (2) The application must contain a proposed depo- answer or submit any evidence the witness has sition subpoena and a brief statement of the rea- refused to submit during the deposition. sons for the issuance of the subpoena. The sub- (3) The deposition must be subscribed by the witpoena must name the witness whose deposition is ness, unless the parties and the witness, by stipulato be taken and specify the time and place for tion, have waived the signing, or the witness is ill, taking the deposition. A deposition subpoena may cannot be found, or has refused to sign. If the require the witness to be deposed at any place deposition is not subscribed by the witness, the within the country in which that witness resides or court reporter taking the deposition shall certify that has a regular place of employment or such other the transcript is a true and complete transcript of the convenient place as the administrative law judge deposition. shall fix. (d) Enforcing subpoenas. If a subpoenaed person fails (3) Any requested subpoena that sets forth a valid to comply with any order of the administrative law basis for its issuance must be promptly issued, judge which directs compliance with all or any portion unless the administrative law judge on his or her of a deposition subpoena under paragraph (b) or (c)(3) own motion, requires a written response or requires of this section, the subpoenaing party or other agattendance at a conference concerning whether the grieved party may, to the extent authorized by applicable law, apply to an appropriate United States requested subpoena should be issued. district court for an order requiring compliance with (4) The party obtaining a deposition subpoena is the portions of the subpoena that the administrative responsible for serving it on the witness and for law judge has ordered enforced. A party's right to seek serving copies on all parties. Unless the administracourt enforcement of a deposition subpoena in no way tive law judge orders otherwise, no deposition under limits the sanctions that may be imposed by the this section shall be taken on fewer than ten days' administrative law judge on a party who fails to notice to the witness and all parties. Deposition comply with, or procures a failure to comply with, a subpoenas may be served in any state, territory, subpoena issued under this section. possession of the United States, or the District of Columbia, on any person or company doing business in any state, territory, possession of the United Section 263.28—Interlocutory review States, or the District of Columbia, or as otherwise permitted by law. (a) General rule. The Board may review a ruling of the (b) Objections to deposition subpoenas. administrative law judge prior to the certification of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 821 the record to the Board only in accordance with the (2) A motion for summary disposition must be procedures set forth in this section and section 263.23. accompanied by a statement of the material facts as (b) Scope of review. The Board may exercise interloc- to which the moving party contends there is no utory review of a ruling of the administrative law judge genuine issue. Such motion must be supported by if the Board finds that: documentary evidence, which may take the form of (1) The ruling involves a controlling question of law admissions in pleadings, stipulations, depositions, or policy as to which substantial grounds exist for a investigatory depositions, transcripts, affidavits and difference of opinion; any other evidentiary materials that the moving (2) Immediate review of the ruling may materially party contends support his or her position. The advance the ultimate termination of the proceeding; motion must also be accompanied by a brief con- (3) Subsequent modification of the ruling at the taining the points and authorities in support of the conclusion of the proceeding would be an inade- contention of the moving party. Any party opposing quate remedy; or a motion for summary disposition must file a state- (4) Subsequent modification of the ruling would ment setting forth those material facts as to which he cause unusual delay or expense. or she contends a genuine dispute exists. Such (c) Procedure. Any request for interlocutory review opposition must be supported by evidence of the shall be filed by a party with the administrative law same type as that submitted with the motion for judge within ten days of his or her ruling and shall summary disposition and a brief containing the otherwise comply with section 263.23. Any party may points and authorities in support of the contention file a response to a request for interlocutory review in that summary disposition would be inappropriate. accordance with section 263.23(d). Upon the expira- (c) Hearing on motion. At the request of any party or tion of the time for filing all responses, the administra- on his or her own motion, the administrative law judge tive law judge shall refer the matter to the Board for may hear oral argument on the motion for summary final disposition. disposition. (d) Suspension of proceeding. Neither a request for (d) Decision on motion. Following receipt of a motion interlocutory review nor any disposition of such a for summary disposition and all responses thereto, the request by the Board under this section suspends or administrative law judge shall determine whether the stays the proceeding unless otherwise ordered by the moving party is entitled to summary disposition. If the administrative law judge or the Board. administrative law judge determines that summary disposition is warranted, the administrative law judge shall submit a recommended decision to that effect to Section 263.29—Summary disposition. the Board. If the administrative law judge finds that no party is entitled to summary disposition, he or she (a) In general. The administrative law judge shall shall make a ruling denying the motion. recommend that the Board issue a final order granting a motion for summary disposition if the undisputed Section 263.30—Partial summary disposition. pleaded facts, admissions, affidavits, stipulations, documentary evidence, matters as to which official notice (a) If the administrative law judge determines that a may be taken, and any other evidentiary materials party is entitled to summary disposition as to certain properly submitted in connection with a motion for claims only, he or she shall defer submitting a recomsummary disposition show that: mended decision as to those claims. A hearing on the (1) There is no genuine issue as to any material fact; remaining issues must be ordered. Those claims for and which the administrative law judge has determined (2) The moving party is entitled to a decision in its that summary disposition is warranted will be adfavor as a matter of law. dressed in the recommended decision filed at the (b)Filing of motions and responses. conclusion of the hearing. (1) Any party who believes that there is no genuine issue of material fact to be determined and that he or Section 263.31—Scheduling and prehearing she is entitled to a decision as a matter of law may conferences. move at any time for summary disposition in its favor of all or any part of the proceeding. Any party, (a) Scheduling conference. Within 30 days of service within 20 days after service of such a motion, or of the notice or order commencing a proceeding or within such time period as allowed by the adminis- such other time as parties may agree, the administratrative law judge, may file a response to such tive law judge shall direct counsel for all parties to motion. meet with him or her in person at a specified time and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

822 Federal Reserve Bulletin • October 1991 place prior to the hearing or to confer by telephone for (b) Effect of failure to comply. No witness may testify the purpose of scheduling the course and conduct of and no exhibits may be introduced at the hearing if the proceeding. This meeting or telephone conference such witness or exhibit is not listed in the prehearing is called a "scheduling conference." The identification submissions pursuant to paragraph (a) of this section, of potential witnesses, the time for and manner of except for good cause shown. discovery, and the exchange of any prehearing materials including witness lists, statements of issues, stipulations, exhibits and any other materials may also Section 263.33—Public hearings. be determined at the scheduling conference. (b) Prehearing conferences. The administrative law (a) General rule. All hearings shall be open to the judge may, in addition to the scheduling conference, public, unless the Board, in its discretion, determines on his or her own motion or at the request of any that holding an open hearing would be contrary to the party, direct counsel for the parties to meet with him public interest. Within 20 days of service of the notice or her (in person or by telephone) at a prehearing or, in the case of change-in-control proceedings under conference to address any or all of the following: section 7(j)(4) of the FDIA (12 U.S.C. 1817(j)(4)), (1) Simplification and clarification of the issues; within 20 days from service of the hearing order, any (2) Stipulations, admissions of fact, and the conrespondent may file with the Board a request for a tents, authenticity and admissibility into evidence of private hearing, and any party may file a pleading in documents; reply to such a request. Such requests and replies are (3) Matters of which official notice may be taken; governed by section 263.23. Failure to file a request or (4) Limitation of the number of witnesses; a reply is deemed a waiver of any objections regarding (5) Summary disposition of any or all issues; whether the hearing will be public or private. (6) Resolution of discovery issues or disputes; (b) Filing document under seal. Enforcement Counsel, (7) Amendments to pleadings; and in his or her discretion, may file any document or part (8) Such other matters as may aid in the orderly of a document under seal if disclosure of the document disposition of the proceeding. would be contrary to the public interest. The admin- (c) Transcript. The administrative law judge, in his or istrative law judge shall take all appropriate steps to her discretion, may require that a scheduling or prepreserve the confidentiality of such documents or hearing conference be recorded by a court reporter. A parts thereof, including closing portions of the hearing transcript of the conference and any materials filed, to the public. including orders, becomes part of the record of the proceeding. A party may obtain a copy of the transcript at his or her expense. Section 263.34—Hearing subpoenas. (d) Scheduling or prehearing orders. At or within a reasonable time following the conclusion of the scheduling conference or any prehearing conference, the (a) Issuance. administrative law judge shall serve on each party an (1) Upon application of a party showing general order setting forth any agreements reached and any relevance and reasonableness of scope of the testiprocedural determinations made. mony or other evidence sought, the administrative law judge may issue a subpoena or a subpoena duces tecum requiring the attendance of a witness at the Section 263.32—Prehearing submissions. hearing or the production of documentary or physical evidence at such hearing. The application for a (a) Within the time set by the administrative law judge, hearing subpoena must also contain a proposed but in no case later than 14 days before the start of the subpoena specifying the attendance of a witness or hearing, each party shall serve on every other party, the production of evidence from any state, territory, his or her: or possession of the United States, the District of (1) Prehearing statement; Columbia or as otherwise provided by law at any (2) Final list of witnesses to be called to testify at the designated place where the hearing is being conhearing, including name and address of each witness ducted. and a short summary of the expected testimony of (2) A party may apply for a hearing subpoena at any each witness; time before the commencement of a hearing. During (3) List of the exhibits to be introduced at the a hearing, such applications may be made orally on hearing along with a copy of each exhibit; and the record before the administrative law judge. The (4) Stipulations of fact, if any. party making the application shall serve a copy of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 823 the application and the proposed subpoena on every (3) Stipulations. Unless the administrative law judge other party to the proceeding. directs otherwise, all stipulations of fact and law (3) The administrative law judge shall promptly previously agreed upon by the parties, and all docissue any hearing subpoena requested pursuant to uments, the admissibility of which have been previthis section. If the administrative law judge deter- ously stipulated, will be admitted into evidence mines that the application does not set forth a valid upon commencement of the hearing, basis for the issuance of the subpoena, or that any of (b) Transcript. The hearing must be recorded and its terms are unreasonable, oppressive, excessive in transcribed. The transcript shall be made available to scope, or unduly burdensome, he or she may refuse any party upon payment of the cost thereof. The to issue the subpoena or may issue it in a modified administrative law judge shall have authority to order form upon any conditions consistent with these the record corrected, either upon motion to correct, rules. upon stipulation of the parties, or following notice to (b) Motion to quash or modify. the parties upon the administrative law judge's own (1) Any person to whom a hearing subpoena is motion. The administrative law judge shall serve nodirected may file a motion to quash or modify such tice upon all parties that the certified transcript, tosubpoena, accompanied by a statement of the basis gether with all hearing exhibits and exhibits introduced for quashing or modifying the subpoena. The mo- but not admitted into evidence at the hearing, has been vant shall serve the motion on all parties, and any filed. party may respond to such motion within ten days of service of the motion. Section 263.36—Evidence. (2) Any motion to quash or modify a hearing subpoena must be filed prior to the time specified in the (a) Admissibility. subpoena for compliance, but not more than ten (1) Except as is otherwise set forth in this section, days after the date of service of the subpoena upon relevant, material, and reliable evidence that is not the movant. unduly repetitive is admissible to the fullest extent (c) Enforcing subpoenas. If a subpoenaed person fails authorized by the Administrative Procedure Act and to comply with any subpoena issued pursuant to this other applicable law. section or any order of the administrative law judge (2) Evidence that would be admissible under the which directs compliance with all or any portion of a Federal Rules of Evidence is admissible in a prodocument subpoena, the subpoenaing party or any ceeding conducted pursuant to this subpart. other aggrieved party may seek enforcement of the (3) Evidence that would be inadmissible under the subpoena pursuant to section 263.26(c). Federal Rules of Evidence may not be deemed or ruled to be inadmissible in a proceeding conducted pursuant to this subpart if such evidence is relevant, Section 263.35—Conduct of hearings. material, reliable and not unduly repetitive. (b) Official notice. (a) General rules. (1) Official notice may be taken of any material fact (1) Hearings shall be conducted so as to provide a which may be judicially noticed by a United States fair and expeditious presentation of the relevant district court and any material information in the disputed issues. Each party has the right to present official public records of any Federal or state govits case or defense by oral and documentary evi- ernment agency. dence and to conduct such cross examination as (2) AH matters officially noticed by the administramay be required for full disclosure of the facts. tive law judge or Board shall appear on the record. (2) Order of hearing. Enforcement Counsel shall (3) If official notice is requested or taken of any present its case-in-chief first, unless otherwise or- material fact, the parties, upon timely request, shall dered by the administrative law judge, or unless be afforded an opportunity to object. otherwise expressly specified by law or regulation. (c) Documents. Enforcement Counsel shall be the first party to (1) A duplicate copy of a document is admissible to present an opening statement and a closing state- the same extent as the original, unless a genuine ment, and may make a rebuttal statement after the issue is raised as to whether the copy is in some respondent's closing statement. If there are multiple material respect not a true and legible copy of the respondents, respondents may agree among them- original. selves as to their order of presentation of their (2) Subject to the requirements of paragraph (a) of cases, but if they do not agree the administrative law this section, any document, including a report of judge shall fix the order. examination, supervisory activity, inspection or vis- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

824 Federal Reserve Bulletin • October 1991 itation, prepared by an appropriate Federal financial (1) Any party may file with the administrative law institution regulatory agency or state regulatory judge proposed findings of fact, proposed concluagency, is admissible either with or without a spon- sions of law, and a proposed order within 30 days soring witness. after the parties have received notice that the tran- (3) Witnesses may use existing or newly created script has been filed with the administrative law charts, exhibits, calendars, calculations, outlines or judge, unless otherwise ordered by the administraother graphic material to summarize, illustrate, or tive law judge. simplify the presentation of testimony. Such mate- (2) Proposed findings and conclusions must be suprials may, subject to the administrative law judge's ported by citation to any relevant authorities and by discretion, be used with or without being admitted page references to any relevant portions of the into evidence. record. A post-hearing brief may be filed in support (d) Objections. of proposed findings and conclusions, either as part (1) Objections to the admissibility of evidence must of the same document or in a separate document. be timely made and rulings on all objections must Any party who fails to file timely with the adminisappear on the record. trative law judge any proposed finding or conclusion (2) When an objection to a question or line of is deemed to have waived the right to raise in any questioning propounded to a witness is sustained, subsequent filing or submission any issue not adthe examining counsel may make a specific proffer dressed in such party's proposed finding or concluon the record of what he or she expected to prove by sion. the expected testimony of the witness, either by (b) Reply briefs. Reply briefs may be filed within 15 representation of counsel or by direct interrogation days after the date on which the parties' proposed of the witness. findings, conclusions, and order are due. Reply briefs (3) The administrative law judge shall retain rejected must be strictly limited to responding to new matters, exhibits, adequately marked for identification, for issues, or arguments raised in another party's papers. the record, and transmit such exhibits to the Board. A party who has not filed proposed findings of fact and (4) Failure to object to admission of evidence or to conclusions of law or a post-hearing brief may not file any ruling constitutes a waiver of the objection. a reply brief. (e) Stipulations. The parties may stipulate as to any (c) Simultaneous filing required. The administrative relevant matters of fact or the authentication of any law judge shall not order the filing by any party of any relevant documents. Such stipulations must be re- brief or reply brief in advance of the other party's filing ceived in evidence at a hearing, and are binding on the of its brief. parties with respect to the matters therein stipulated. (f) Depositions of unavailable witnesses. Section 263.38—Recommended decision and (1) If a witness is unavailable to testify at a hearing, filing of record. and that witness has testified in a deposition to which all parties in a proceeding had notice and an (a) Within 45 days after expiration of the time allowed opportunity to participate, a party may offer as for filing reply briefs under section 263.37(b), the evidence all or any part of the transcript of the administrative law judge shall file with and certify to deposition, including deposition exhibits, if any. the Board for decision the record of the proceeding. (2) Such deposition transcript is admissible to the The record must include the administrative law judge's same extent that testimony would have been admis- recommended decision, recommended findings of fact, sible had that person testified at the hearing, pro- recommended conclusions of law, and proposed orvided that if a witness refused to answer proper der; all prehearing and hearing transcripts, exhibits, questions during the depositions, the administrative and rulings; and the motions, briefs, memoranda, and law judge may, on that basis, limit the admissibility other supporting papers filed in connection with the of the deposition in any manner that justice requires. hearing. The administrative law judge shall serve upon (3) Only those portions of a deposition received in each party the recommended decision, findings, conevidence at the hearing constitute a part of the clusions, and proposed order. record. Section 263.39—Exceptions to recommended Section 263.37—Proposed findings and decision. conclusions. (a) Filing exceptions. Within 30 days after service of (a) Proposed findings and conclusions and supporting the recommended decision, findings, conclusions, and briefs. proposed order under section 263.38, a party may file Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 825 with the Board written exceptions to the administra- upon review of the entire record of the proceeding, tive law judge's recommended decision, findings, con- except that the Board may limit the issues to be clusions or proposed order, to the admission or exclu- reviewed to those findings and conclusions to which sion of evidence, or to the failure of the administrative opposing arguments or exceptions have been filed law judge to make a ruling proposed by a party. A by the parties. supporting brief may be filed at the time the exceptions (2) The Board shall render a final decision within 90 are filed, either as part of the same document or in a days after notification of the parties that the case has separate document. been submitted for final decision, or 90 days after (b) Effect of failure to file or raise exceptions. oral argument, whichever is later, unless the Board (1) Failure of a party to file exceptions to those orders that the action or any aspect thereof be matters specified in paragraph (a) of this section remanded to the administrative law judge for further within the time prescribed is deemed a waiver of proceedings. Copies of the final decision and order objection thereto. of the Board shall be served upon each party to the (2) No exception need be considered by the Board if proceeding, upon other persons required by statute, the party taking exception had an opportunity to and, if directed by the Board or required by statute, raise the same objection, issue, or argument before upon any appropriate state or Federal supervisory the administrative law judge and failed to do so. authority. (c) Contents. (1) All exceptions and briefs in support of such Section 263.41—Stays pending judicial review. exceptions must be confined to the particular matters in, or omissions from, the administrative law judge's recommendations to which that party takes (a) The commencement of proceedings for judicial exception. review of a final decision and order of the Board may (2) All exceptions and briefs in support of excep- not, unless specifically ordered by the Board or a tions must set forth page or paragraph references to reviewing court, operate as a stay of any order issued the specific parts of the administrative law judge's by the Board. The Board may, in its discretion, and on recommendations to which exception is taken, the such terms as it finds just, stay the effectiveness of all page or paragraph references to those portions of or any part of its order pending a final decision on a the record relied upon to support each exception, petition for review of that order. and the legal authority relied upon to support each exception. Subpart B—Board Local Rules Supplementing the Uniform Rules Section 263.40—Review by the Board. Section 263.50—Purpose and scope. (a) Notice of submission to the Board. When the Board determines that the record in the proceeding is complete, the Board shall serve notice upon the par- (a) This subpart prescribes the rules of practice and ties that the proceeding has been submitted to the procedure governing formal adjudications set forth in § Board for final decision. 263.50(b) of this subpart, and supplements the rules of (b) Oral argument before the Board. Upon the initia- practice and procedure contained in subpart A of this tive of the Board or on the written request of any party part. filed with the Board within the time for filing excep- (b) The rules and procedures of this subpart and tions, the Board may order and hear oral argument on subpart A of this part shall apply to the formal adjuthe recommended findings, conclusions, decision, and dications set forth in section 263.1 of subpart A and to order of the administrative law judge. A written re- the following adjudications: quest by a party must show good cause for oral (1) Suspension of a member bank from use of credit argument and state reasons why arguments cannot be facilities of the Federal Reserve System under secpresented adequately in writing. A denial of a request tion 4 of the FRA (12 U.S.C. 301); for oral argument may be set forth in the Board's final (2) Termination of a bank's membership in the decision. Oral argument before the Board must be on Federal Reserve System under section 9 of the FRA the record. (12 U.S.C. 327); (c) Agency final decision. (3) Issuance of a cease-and-desist order under sec- (1) Decisional employees may advise and assist the tion 11 of the Clayton Act (15 U.S.C. 21); Board in the consideration and disposition of the (4) Adjudications under sections 2, 3, or 4 of the case. The final decision of the Board will be based BHC Act (12 U.S.C. 1841, 1842, or 1843); Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

826 Federal Reserve Bulletin • October 1991 (5) Formal adjudications on bank merger applica- (c) Issuance of subpoena. The administrative law tions under section 18(c) of the FDIA (12 U.S.C. judge shall issue the requested deposition subpoena or 1828(c)); subpoena duces tecum upon a finding that the appli- (6) Issuance of a divestiture order under section 5(e) cation satisfies the requirements of this section and of of the BHC Act (12 U.S.C. 1844(e)); section 263.24. If the administrative law judge deter- (7) Imposition of sanctions upon any municipal mines that the taking of the deposition or its proposed securities dealer for which the Board is the appro- location is, in whole or in part, unnecessary, unreapriate regulatory agency, or upon any person asso- sonable, oppressive, excessive in scope or unduly ciated or seeking to become associated with such a burdensome, he or she may deny the application or municipal securities dealer, under section 15B(c)(5) may grant it upon such conditions as justice may of the Exchange Act (15 U.S.C. 78o-4); and require. The party obtaining the deposition subpoena (8) Proceedings where the Board otherwise orders or subpoena duces tecum shall be responsible for that a formal hearing be held. serving it on the deponent and all parties to the proceeding in accordance with section 263.11. Section 263.51—Definitions. (d) Motion to quash or modify. A person named in a deposition subpoena or subpoena duces tecum may As used in subparts B through G of this part: file a motion to quash or modify the subpoena or for the issuance of a protective order. Such motions must (a) Secretary means the Secretary of the Board of be filed within ten days following service of the sub- Governors of the Federal Reserve System; poena, but in all cases at least five days prior to the (b) Member bank means any bank that is a member of commencement of the scheduled deposition. The mothe Federal Reserve System. tion must be accompanied by a statement of the reasons for granting the motion and a copy of the Section 263.52—Address for filing. motion and the statement must be served on the party which requested the subpoena. Only the party request- (a) All papers to be filed with the Board shall be filed ing the subpoena may file a response to a motion to with the Secretary of the Board of Governors of the quash or modify, and any such response shall be filed Federal Reserve System, Washington, D.C. 20551. within five days following service of the motion. (e) Enforcement of a deposition subpoena. Enforce- Section 263.53—Discovery depositions. ment of a deposition subpoena shall be in accordance with the procedures set forth in section 263.27(d). (a) In general. In addition to the discovery permitted (f) Conduct of the deposition. The deponent shall be in subpart A of this part, limited discovery by means of duly sworn, and each party shall have the right to depositions shall be allowed for individuals with examine the deponent with respect to all non-priviknowledge of facts material to the proceeding that are leged, relevant and material matters. Objections to not protected from discovery by any applicable privi- questions or evidence shall be in the short form, lege, and of identified expert witnesses. Except in stating the ground for the objection. Failure to object unusual cases, accordingly, depositions will be permit- to questions or evidence shall not be deemed a waiver ted only of individuals identified as hearing witnesses, except where the grounds for the objection might have including experts. All discovery depositions must be been avoided if the objection had been timely precompleted within the time set forth in section sented. The discovery deposition shall be transcribed 263.24(d). or otherwise recorded as agreed among the parties. (b) Application. A party who desires to take a deposi- (g) Protective orders. At any time during the taking of tion of any other party's proposed witnesses, shall a discovery deposition, on the motion of any party or apply to the administrative law judge for the issuance of the deponent, the administrative law judge may of a deposition subpoena or subpoena duces tecum. terminate or limit the scope and manner of the depo- The application shall state the name and address of the sition upon a finding that grounds exist for such relief. proposed deponent, the subject matter of the testi- Grounds for terminating or limiting the taking of a mony expected from the deponent and its relevancy to discovery deposition include a finding that the discovthe proceeding, and the address of the place and the ery deposition is being conducted in bad faith or in time, no sooner than ten days after the service of the such a manner as to: subpoena, for the taking of the deposition. Any such (1) Unreasonably annoy, embarrass, or oppress the application shall be treated as a motion subject to the deponent; rules governing motions practice set forth in section (2) Unreasonably probe into privilege, irrelevant or 263.23. immaterial matters; or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 827 (3) Unreasonably attempt to pry into a party's Section 263.61—Opportunity for informal preparation for trial. proceeding. (a) In the sole discretion of the Board's General Section 263.54—Delegation to the Office of Counsel, the General Counsel may, prior to the issu- Financial Institution Adjudication. ance by the Board of a notice of assessment of civil penalty, advise the affected person that the issuance of (a) Unless otherwise ordered by the Board, adminis- a notice of assessment of civil penalty is being considtrative adjudications subject to subpart A of this part ered and the reasons and authority for the proposed shall be conducted by an administrative law judge of assessment. The General Counsel may provide the OFIA. person an opportunity to present written materials or request a conference with members of the Board's staff to show that the penalty should not be assessed Section 263.55—Board as Presiding Officer. or, if assessed, should be reduced in amount. (a) The Board may, in its discretion, designate itself, Section 263.62—Relevant considerations for one or more of its members, or an authorized officer, assessment of civil penalty. to act as presiding officer in a formal hearing. In such a proceeding, proposed findings and conclusions, (a) In determining the amount of the penalty to be briefs, and other submissions by the parties permitted assessed, the Board shall take into account the approin subpart A shall be filed with the Secretary for priateness of the penalty with respect to the financial consideration by the Board. Sections 263.38 and resources and good faith of the person charged, the 263.39 of subpart A will not apply to proceedings gravity of the misconduct, the history of previous conducted under this section. misconduct, the economic benefit derived by the person from the misconduct, and such other matters as justice may require. Section 263.56—Initial Licensing Proceedings. Section 263.63—Assessment order. (a) Proceedings with respect to applications for initial licenses shall include, but not be limited to, applica- (a) In the event of consent to an assessment by the tions for Board approval under section 3 of the BHC person concerned, or if, upon the record made at an Act and such proceedings as may be ordered by the administrative hearing, the Board finds that the Board with respect to applications under section 18(c) grounds for having assessed the penalty have been of the FDIA. In such initial licensing proceedings, the established, the Board may issue a final order of procedures set forth in subpart A of this part shall assessment of civil penalty. In its final order, the apply, except that the Board may designate a Board Board may modify the amount of the penalty specified Counsel to represent the Board in a nonadversary in the notice of assessment. capacity for the purpose of developing for the record (b) An assessment order is effective immediately upon information relevant to the issues to be determined by issuance, or upon such other date as may be specified the Presiding Officer and the Board. In such proceedtherein, and shall remain effective and enforceable ings, Board Counsel shall be considered to be a until it is stayed, modified, terminated, or set aside by decisional employee for purposes of sections 263.9 and action of the Board or a reviewing court. 263.40 of subpart A. Section 263.64—Payment of civil penalty. Subpart C—Rules and Procedures for Assessment and Collection of Civil Money (a) The date designated in the notice of assessment for Penalties payment of the civil penalty will normally be 60 days from the issuance of the notice. If, however, the Board finds in a specific case that the purposes of the Section 263.60—Scope. authorizing statute would be better served if the 60day period is changed, the Board may shorten or (a) The Uniform Rules set forth in subpart A of this lengthen the period or make the civil penalty payable part shall govern the procedures for assessment of immediately upon receipt of the notice of assessment. civil money penalties, except as otherwise provided in If a timely request for a formal hearing to challenge an this subpart. assessment of civil penalty is filed, payment of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

828 Federal Reserve Bulletin • October 1991 penalty shall not be required unless and until the (b) Contents. The Board commences a suspension, Board issues a final order of assessment following the removal, or prohibition action under this subpart with hearing. If an assessment order is issued, it will specify the issuance, and service upon a institution-affiliated the date by which the civil penalty should be paid or party, of a notice of suspension from office, or order of collected. removal from office, or notice or order of prohibition (b) Checks in payment of civil penalties should be from participation in the financial institution's affairs. made payable to the "Board of Governors of the Such a notice or order shall indicate the basis for the Federal Reserve System." Upon collection, the Board suspension, removal, or prohibition and shall inform shall forward the amount of the penalty to the Trea- the institution-affiliated party of the right to request in sury of the United States. writing, within 30 days of service of the notice or order, an opportunity to show at an informal hearing Subpart D—Rules and Procedures Applicable that continued service to, or participation in the conto Suspension or Removal of an Institution- duct of the affairs of, the financial institution does not Affiliated Party Where a Felony is Charged or and is not likely to pose a threat to the interests of the Proven financial institution's depositors or threaten to impair public confidence in the financial institution. Failure to Section 263.70—Purpose and scope. file a timely request for an informal hearing shall be deemed to be a waiver of the right to request such a (a) The rules and procedures set forth in this subpart hearing. A notice of suspension or prohibition shall remain in effect until the criminal charge upon which apply to informal hearings afforded to any institutionthe notice is based is finally disposed of or until the affiliated party for whom the Board is the appropriate notice is terminated by the Board. regulatory agency, who has been suspended or removed from office or prohibited from further partici- (c) Service. The notice or order shall be served upon pation in any manner in the conduct of the institution's the affiliated financial institution concerned, whereaffairs by a notice or order issued by the Board upon upon the institution-affiliated party shall immediately the grounds set forth in section 8(g) of the FDIA cease service to the financial institution or further (12 U.S.C. 1818(g)). participation in any manner in the conduct of the affairs of the financial institution. A notice or order of Section 263.71—Notice or order of suspension, suspension, removal, or prohibition may be served by removal, or prohibition. any of the means authorized for service under section 263.11(c)(2) of subpart A. (a) Grounds. The Board may suspend an institutionaffiliated party from office or prohibit an institution- Section 263.72—Request for informal hearing. affiliated party from further participation in any manner in the conduct of an institution's affairs when the (a) An institution-affiliated party who is suspended or person is charged in any information, indictment, or removed from office or prohibited from participation in complaint authorized by a United States attorney with the institution's affairs may request an informal hearthe commission of, or participation in, a crime involv- ing within 30 days of service of the notice or order. ing dishonesty or breach of trust that is punishable by The request shall be filed in writing with the Secretary, imprisonment for a term exceeding one year under Board of Governors of the Federal Reserve System, State or Federal law. The Board may remove an Washington, D.C. 20551. The request shall state with institution-affiliated party from office or prohibit an particularity the relief desired and the grounds therefor institution-affiliated party from further participation in and shall include, when available, supporting evidence any manner in the conduct of an institution's affairs in the form of affidavits. If the institution-affiliated when the person is convicted of such an offense and party desires to present oral testimony or witnesses at the conviction is not subject to further direct appellate the hearing, the institution-affiliated party must inreview. The Board may suspend or remove an institu- clude a request to do so with the request for informal tion-affiliated party or prohibit an institution-affiliated hearing. The request to present oral testimony or party from participation in an institution's affairs in witnesses shall specify the names of the witnesses and these circumstances if the Board finds that continued the general nature of their expected testimony. service to the financial institution or participation in its affairs by the institution-affiliated party may pose a Section 263.73—Order for informal hearing. threat to the interests of the institution's depositors or may threaten to impair public confidence in the finan- (a) Issuance of hearing order. Upon receipt of a timely cial institution. request for an informal hearing, the Secretary shall Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 829 promptly issue an order directing an informal hearing ing officers shall make a recommendation to the Board to commence within 30 days of the receipt of the concerning the notice or order of suspension, removal, request. At the request of the institution-affiliated or prohibition within 20 calendar days following the party, the Secretary may order the hearing to com- close of the record on the hearing. mence at a time more than 30 days after the receipt of the request for hearing. The hearing shall be held in Section 263.74—Decision of the Board. Washington, D.C., or at such other place as may be designated by the Secretary, before presiding officers (a) Within 60 days following the close of the record on designated by the Secretary to conduct the hearing. the hearing, or receipt of written submissions where a The presiding officers normally will include represen- hearing has been waived, the Board shall notify the tatives from the Board's Legal Division and the Divi- institution-affiliated party whether the notice of sussion of Banking Supervision and Regulation and from pension or prohibition will be continued, terminated, the appropriate Federal Reserve Bank. or otherwise modified, or whether the order of re- (b) Waiver of oral hearing. A institution-affiliated moval or prohibition will be rescinded or otherwise party may waive in writing his or her right to an oral modified. The notification shall contain a statement of hearing and instead elect to have the matter deter- the basis for any adverse decision by the Board. In the mined by the Board solely on the basis of written case of a decision favorable to the institution-affiliated submissions. party, the Board shall take prompt action to rescind or (c) Hearing procedures. otherwise modify the order of suspension, removal or (1) The institution-affiliated party may appear at the prohibition. hearing personally, through counsel, or personally (b) In deciding the question of suspension, removal, or with counsel. The institution-affiliated party shall prohibition under this subpart, the Board shall not rule have the right to introduce relevant written materi- on the question of the guilt or innocence of the als and to present an oral argument. The institution- individual with respect to the crime with which the affiliated party may introduce oral testimony and individual has been charged. present witnesses only if expressly authorized by the Board or the Secretary. Except as provided in Subpart E—Procedures for Issuance and section 263.11, the adjudicative procedures of the Enforcement of Directives to Maintain Administrative Procedure Act (5 U.S.C. 554-557) Adequate Capital and of subpart A of this part shall not apply to the informal hearing ordered under this subpart unless Section 263.80—Purpose and scope. the Board orders that subpart A of this part applies. (2) The informal hearing shall be recorded and a (a) This subpart establishes procedures under which transcript shall be furnished to the institution-affili- the Board may issue a directive or take other action to ated party upon request and after the payment of the require a state member bank or a bank holding comcost thereof. Witnesses need not be sworn, unless pany to achieve and maintain adequate capital. specifically requested by a party or the presiding officers. The presiding officers may ask questions of Section 263.81—Definitions. any witness. (3) The presiding officers may order the record to be (a) Bank holding company means any company that kept open for a reasonable period following the controls a bank as defined in section 2 of the BHC Act, hearing (normally five business days), during which 12 U.S.C. 1841, and in the Board's Regulation Y time additional submissions to the record may be (12 C.F.R. 225.2(b)) or any direct or indirect subsidmade. Thereafter, the record shall be closed. iary thereof other than a bank subsidiary as defined in (d) Authority of presiding officers. In the course of or section 2(c) of the BHC Act, 12 U.S.C. 1841(c), and in in connection with any proceeding under this subpart, the Board's Regulation Y (12 C.F.R. 225.2(a)). the Board or the presiding officers are authorized to (b) Capital Adequacy Guidelines means those guideadminister oaths and affirmations, to take or cause to lines for bank holding companies and state member be taken depositions, to issue, quash or modify sub- banks contained in Appendix A and D to the Board's poenas and subpoenas duces tecum, and, for the Regulation Y (12 C.F.R. Part 225), and in Appendix A enforcement thereof, to apply to an appropriate to the Board's Regulation H (12 C.F.R. Part 208), or United States district court. All action relating to any succeeding capital guidelines promulgated by the depositions and subpoenas shall be in accordance with Board. the rules provided in sections 263.34 and 263.53. (c) Directive means a final order issued by the Board (e) Recommendation of presiding officers. The presid- pursuant to ILSA (12 U.S.C. 3907(b)(2)) requiring a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

830 Federal Reserve Bulletin • October 1991 state member bank or bank holding company to in- within the time period set by the Board. The response crease capital to or maintain capital at the minimum may include: level set forth in the Board's Capital Adequacy Guide- (1) An explanation why a directive should not be lines or as otherwise established under procedures issued; described in section 263.85 of this subpart, (2) Any proposed modification of the terms of the (d) State member bank means any state-chartered directive; bank that is a member of the Federal Reserve System. (3) Any relevant information, mitigating circumstances, documentation or other evidence in support Section 263.82—Establishment of minimum of the institution's position regarding the proposed directive; and capital levels. (4) The institution's plan for attaining the required level of capital. (a) The Board has established minimum capital levels (d) Failure to file response. Failure by the bank or for state member banks and bank holding companies in bank holding company to file a written response to the its Capital Adequacy Guidelines. The Board may set notice of intent to issue a directive within the specified higher capital levels as necessary and appropriate for a time period shall constitute a waiver of the opportunity particular state member bank or bank holding comto respond and shall constitute consent to the issuance pany based upon its financial condition, managerial of such directive. resources, prospects, or similar factors, pursuant to (e) Board consideration of response. After considering the procedures set forth in section 263.85 of this the response of the bank or bank holding company, the subpart. Board may: (1) Issue the directive as originally proposed or in Section 263.83—Issuance of capital directives. modified form; (2) Determine not to issue a directive and so notify (a) Notice of intent to issue directive. If a state the bank or bank holding company; or member bank or bank holding company is operating (3) Seek additional information or clarification of the with less than the minimum level of capital established response by the bank or bank holding company. in the Board's Capital Adequacy Guidelines, or as (f) Contents of directive. Any directive issued by the otherwise established under the procedures described Board may order the bank or bank holding company in section 263.85 of this subpart, the Board may issue to: and serve upon such state member bank or bank (1) Achieve or maintain the minimum capital reholding company written notice of the Board's intent quirement established pursuant to the Board's Capto issue a directive to require the bank or bank holding ital Adequacy Guidelines or the procedures in seccompany to achieve and maintain adequate capital tion 263.85 of this subpart by a certain date; within a specified time period. (2) Adhere to a previously submitted plan or submit (b) Contents of notice. The notice of intent to issue a for approval and adhere to a plan for achieving the directive shall include: minimum capital requirement by a certain date; (1) The required minimum level of capital to be (3) Take other specific action as the Board directs to achieved or maintained by the institution; achieve the minimum capital levels, including re- (2) Its current level of capital; quiring a reduction of assets or asset growth or (3) The proposed increase in capital needed to meet restriction on the payment of dividends; or the minimum requirements; (4) Take any combination of the above actions. (4) The proposed date or schedule for meeting these (g) Request for reconsideration of directive. Any state minimum requirements; member bank or bank holding company, upon a (5) When deemed appropriate, specific details of a change in circumstances, may request the Board to proposed plan for meeting the minimum capital reconsider the terms of a directive and may propose requirements; and changes in the plan under which it is operating to meet (6) The date for a written response by the bank or the required minimum capital level. The directive and bank holding company to the proposed directive, plan continue in effect while such request is pending which shall be at least 14 days from the date of before the Board. issuance of the notice unless the Board determines a shorter period is necessary because of the financial Section 263.84—Enforcement of directive, condition of the bank or bank holding company. (c) Response to notice. The bank or bank holding company may file a written response to the notice (a) Judicial and administrative remedies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 831 (1) Whenever a bank or bank holding company fails (3) A condition for approval of an application or to follow a directive issued under this subpart, or to issuance of a notice of intent not to disapprove a submit or adhere to a capital adequacy plan as proposal; required by such directive, the Board may seek (4) Or other similar means; or enforcement of the directive, including the capital (5) The procedures set forth in paragraph (b) of this adequacy plan, in the appropriate United States section. district court, pursuant to section 908 (b)(2)(B)(ii) of (b) Procedure to establish higher capital requirement. ILSA (12 U.S.C. 3907(b)(2)(B)(ii)) and to section (1) Notice. When the Board determines that capital 8(i) of the FDIA (12 U.S.C. 1818(i)), in the same levels above those in the Board's Capital Adequacy manner and to the same extent as if the directive Guidelines may be necessary and appropriate for a were a final cease-and-desist order. particular bank or bank holding company under the (2) The Board, pursuant to section 910(d) of ILSA circumstances, the Board shall give the bank or (12 U.S.C. 3909(d)), may also assess civil money bank holding company notice of the proposed higher penalties for violation of the directive against any capital requirement and shall permit the bank or bank or bank holding company and any institution- bank holding company an opportunity to comment affiliated party of the bank or bank holding com- upon the proposed capital level, whether it should pany, in the same manner and to the same extent as be required and, if so, under what time schedule. if the directive were a final cease-and-desist order. The notice shall contain the Board's reasons for (b) Other enforcement actions. A directive may be proposing a higher level of capital. issued separately, in conjunction with, or in addition (2) Response. The bank or bank holding company to any other enforcement actions available to the shall be allowed at least 14 days to respond, unless Board, including issuance of cease-and-desist orders, the Board determines that a shorter period is necesthe approval or denial of applications or notices, or sary because of the financial condition of the bank or any other actions authorized by law. bank holding company. Failure by the bank or bank (c) Consideration in application proceedings. In acting holding company to file a written response to the upon any application or notice submitted to the Board notice within the time set by the Board shall constipursuant to any statute administered by the Board, the tute a waiver of the opportunity to respond and shall Board may consider the progress of a state member constitute consent to issuance of a directive containbank or bank holding company or any subsidiary ing the required minimum capital level. thereof in adhering to any directive or capital ade- (3) Board decision. After considering the response quacy plan required by the Board pursuant to this of the institution, the Board may issue a written subpart, or by any other appropriate banking supervi- directive to the bank or bank holding company sory agency pursuant to ILSA. The Board shall con- setting an appropriate capital level and the date on sider whether approval or a notice of intent not to which this capital level will become effective. The disapprove would divert earnings, diminish capital, or Board may require the bank or bank holding comotherwise impede the bank or bank holding company pany to submit and adhere to a plan for achieving in achieving its required minimum capital level or such higher capital level as the Board may set. complying with its capital adequacy plan. (4) Enforcement of higher capital level. The Board may enforce the capital level established pursuant to the procedures described in this section and any Section 263.85—Establishment of increased plan submitted to achieve that capital level through capital level for specific institutions. the procedures set forth in section 263.84 of this subpart. (a) Establishment of capital levels for specific institutions. The Board may establish a capital level higher Subpart F—Practice Before the Board than the minimum specified in the Board's Capital Adequacy Guidelines for a specific bank or bank Section 263.90—Scope. holding company pursuant to: (1) A written agreement or memorandum of under- (a) This subpart prescribes rules relating to general standing between the Board or the appropriate Fed- practice before the Board on one's own behalf or in a eral Reserve Bank and the bank or bank holding representational capacity, including the circumstances company; under which disciplinary sanctions—censure, suspen- (2) A temporary or final cease-and-desist order sion, or debarment—may be imposed upon persons issued pursuant to section 8(b) or (c) of the FDIA appearing in a representational capacity, including (12 U.S.C. 1818(b) or (c)); attorneys and accountants, but not including employ- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

832 Federal Reserve Bulletin • October 1991 ees of the Board. These disciplinary sanctions, which Section 263.93—Eligibility to practice. continue in effect beyond the duration of a specific proceeding, supplement the provisions of section (a) Attorneys. Any attorney who is qualified to prac- 263.6(b) of subpart A, which address control of a tice as an attorney and is not currently under suspenspecific proceeding. sion or debarment pursuant to this subpart may practice before the Board. (b) Accountants. Any accountant who is qualified to Section 263.91—Censure, suspension or practice as a certified public accountant or public debarment. accountant and is not currently under suspension or debarment by the Board may practice before the Board. (a) The Board may censure an individual or suspend or debar such individual from practice before the Board if he or she engages, or has engaged, in conduct warrant- Section 263.94—Conduct warranting sanctions. ing sanctions as set forth in section 263.94; refuses to comply with the rules and regulations in this part; or (a) Conduct for which an individual may be censured, with intent to defraud in any manner, willfully and debarred or suspended from practice before the Board knowingly deceives, misleads, or threatens any client includes, but is not limited to: or prospective client. The suspension or debarment of (b) Willfully violating or willfully aiding and abetting an individual shall be initiated only upon a finding by the violation of any provision of the Federal banking the Board that the conduct that forms the basis for the laws or the rules and regulations thereunder or condisciplinary action is egregious. viction of any offense involving dishonesty or breach of trust; (c) Knowingly giving false or misleading information, Section 263.92—Definitions. or participating in any way in the giving of false information to the Board or to any Board officer or (a) As used in this subpart, the following terms shall employee, or to any tribunal authorized to pass upon have the meaning given in this section unless the matters administered by the Board in connection with context otherwise requires. any matter pending or likely to be pending before it. (b)(1) Practice before the Board includes any matters The term "information" includes facts or other stateconnected with presentations to the Board or to any ments contained in testimony, financial statements, of its officers or employees relating to a client's applications, affidavits, declarations, or any other docrights, privileges or liabilities under laws or regula- ument or written or oral statement; tions administered by the Board. Such matters in- (d) Directly or indirectly attempting to influence, or clude, but are not limited to, the preparation of any offering or agreeing to attempt to influence, the official statement, opinion or other paper or document by action of any officer or employee of the Board by the an attorney, accountant, or other licensed profes- use of threats, false accusations, duress or coercion, sional which is filed with, or submitted to, the by the offer of any special inducement or promise of Board, on behalf of another person in, or in connec- advantage or by the bestowing of any gift, favor, or tion with, any application, notification, report or thing of value; document; the representation of a person at confer- (e) Disbarment or suspension from practice as an ences, hearings and meetings; and the transaction of attorney, or debarment or suspension from practice as other business before the Board on behalf of another a certified public accountant or public accountant, by person. any duly constituted authority of any state, posses- (2) Practice before the Board does not include work sion, commonwealth, or the District of Columbia for prepared for an institution solely at its request for the conviction of a felony or misdemeanor involving use in the ordinary course of its business. personal dishonesty or breach of trust in matters (c) Attorney means any individual who is a member in relating to the supervisory responsibilities of the good standing of the bar of the highest court of any Board, where the conviction has not been reversed on state, possession, territory, commonwealth, or the appeal; District of Columbia. (f) Knowingly aiding or abetting another individual to (d) Accountant means any individual who is duly practice before the Board during that individual's qualified to practice as a certified public accountant or period of suspension, debarment, or ineligibility; a public accountant in any state, possession, territory, (g) Contemptuous conduct in connection with practice commonwealth, or the District of Columbia. before the Board, and knowingly making false accusa- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 833 tions and statements, or circulating or publishing ma- proceeding in which the individual is the respondent, licious or libelous matter; the stipulation may be entered in the record at the (h) Suspension or debarment from practice before the request of either party to the proceeding, OCC, the FDIC, the OTS, the Securities and Ex- (b) Resignation or voluntary suspension. In order to change Commission, the NCUA, or any other Federal avoid the institution of, or a decision in, a debarment agency based on matters relating to the supervisory or suspension proceeding, a person who practices responsibilities of the Board; before the Board may consent to suspension from (i) Willful or knowing violation of any of the regula- practice. At the discretion of the Board, the individual tions contained in this part. may be suspended or debarred in accordance with the consent offered. Section 263.95—Initiation of disciplinary proceeding. Section 263.97—Proceedings under this subpart. (a) Receipt of information. An individual, including any employee of the Board, who has reason to believe (a) Except as otherwise provided in this subpart, any that an individual practicing before the Board in a hearing held under this subpart shall be held before an representative capacity has engaged in any conduct administrative law judge of the OFIA pursuant to that would serve as a basis for censure, suspension or procedures set forth in subparts A and B of this part. debarment under section 263.94, may make a report The Board shall appoint a person to represent the thereof and forward it to the Board. Board in the hearing. Any person having prior involve- (b) Censure without formal proceeding. Upon receipt ment in the matter which is the basis for the suspenof information regarding an individual's qualification sion or debarment proceeding shall be disqualified to practice before the Board, the Board may, after from representing the Board in the hearing. The heargiving the individual notice and opportunity to re- ing shall be closed to the public unless the Board, sua spond, censure such individual. sponte or on the request of a party, otherwise directs. (c) Institution of formal disciplinary proceeding. When The administrative law judge shall refer a recomthe Board has reason to believe that any individual mended decision to the Board, which shall issue the who practices before the Board in a representative final decision and order. In its final decision and order, capacity has engaged in conduct that would serve as a the Board may censure, debar or suspend an individbasis for censure, suspension or debarment under ual, or take such other disciplinary action as the Board section 263.94 the Board may, after giving the individ- deems appropriate. ual notice and opportunity to respond, institute a formal disciplinary proceeding against such individual. Section 263.98—Effect of suspension, The proceeding shall be conducted pursuant to sec- debarment or censure. tion 263.97 and shall be initiated by a complaint issued by the Board that names the individual as a respon- (a) Debarment. If the final order against the respondent. Except in cases when time, the nature of the dent is for debarment, the individual will not thereafter proceeding, or the public interest do not permit, a be permitted to practice before the Board unless proceeding under this section shall not be instituted otherwise permitted to do so by the Board pursuant to until the respondent has been informed, in writing, of section 263.99 of this subpart. the facts or conduct which warrant institution of a (b) Suspension. If the final order against the responproceeding and the respondent has been accorded the dent is for suspension, the individual will not thereafopportunity to comply with all lawful requirements or ter be permitted to practice before the Board during take whatever action may be necessary to remedy the the period of suspension. conduct that is the basis for the initiation of the (c) Censure. If the final order against the respondent is proceeding. for censure, the individual may be permitted to practice before the Board, but such individual's future Section 263.96—Conferences. representations may be subject to conditions designed to promote high standards of conduct. If a written (a) General. The Board's staff may confer with a letter of censure is issued, a copy will be maintained in proposed respondent concerning allegations of mis- the Board's files. conduct or other grounds for censure, debarment or (d) Notice of debarment or suspension. Upon the suspension, regardless of whether a proceeding for issuance of a final order for suspension or debarment, debarment or suspension has been instituted. If a the Board shall give notice of the order to appropriate conference results in a stipulation in connection with a officers and employees of the Board, to interested Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

834 Federal Reserve Bulletin • October 1991 departments and agencies of the Federal Government, to the adjudicatory proceeding and show that it meets and to the appropriate authorities of the State in which all other conditions of eligibility set forth below. any debarred or suspended individual is or was li- (b) Types of eligible applicant. An applicant is eligible censed to practice. for an award only if it meets at least one of the following descriptions: Section 263.99—Petition for reinstatement. (1) An individual with a net worth of not more than $2 million at the time the adversary adjudication was (a) The Board may entertain a petition for reinstate- initiated; ment from any person debarred from practice before (2) Any sole owner of an unincorporated business, the Board. The Board shall grant reinstatement only if or any partnership, corporation, associations, unit the Board finds that the petitioner is likely to act in of local government or organization, the net worth accordance with the regulations in this part, and that of which did not exceed $7,000,000 and which did granting reinstatement would not be contrary to the not have more than 500 employees at the time the public interest. Any request for reinstatement shall be adversary adjudication was initiated; limited to written submissions unless the Board, in its (3) A charitable or other tax-exempt organization discretion, affords the petitioner an informal hearing. described in section 501(c)(3) of the Internal Revenue Code (26 U.S.C. 501(c)(3)) with not more than Subpart G—Rules Regarding Claims Under the 500 employees at the time the adversary proceeding Equal Access to Justice Act was initiated; or (4) A cooperative association as defined in section Section 263.100—Authority and scope. 15(a) of the Agricultural Marketing Act (12 U.S.C. 1141j(a)) with not more than 500 employees at the time the adversary proceeding was initiated. (a) This subpart implements the provisions of the (c) Factors to be considered. In determining the eligi- Equal Access to Justice Act (5 U.S.C. 504) as they bility of an applicant: apply to formal adversary adjudications before the (1) An applicant who owns an unincorporated busi- Board. The types of proceedings covered by this ness shall be considered as an "individual" rather subpart are listed in sections 263.1 and 263.50. than a "sole owner of an unincorporated business" if the issues on which he or she prevailed are related Section 263.101—Standards for awards. to personal interests rather than to business interests. (a) A respondent in a covered proceeding that prevails (2) An applicant's net worth includes the value of on the merits of that proceeding against the Board, and any assets disposed of for the purpose of meeting an that is eligible under this subpart as defined in seceligibility standard and excludes the value of any tion 263.103, may receive an award for fees and exobligations incurred for this purpose. Transfers of penses incurred in the proceeding unless the position assets or obligations incurred for less than reasonof the Board during the proceeding was substantially ably equivalent value will be presumed to have been justified or special circumstances make an award unmade for this purpose. just. The position of the Board includes, in addition to (3) The net worth of a financial institution shall be the position taken by the Board in the adversary established by the net worth information reported in proceeding, the action or failure to act by the Board conformity with applicable instructions and guideupon which the adversary proceeding was based. An lines on the financial institution's financial report to award will be reduced or denied if the applicant has its supervisory agency for the last reporting date unduly or unreasonably protracted the proceedings. before the initiation of the adversary proceeding. A bank holding company's net worth will be consid- Section 263.102—Prevailing party. ered on a consolidated basis even if the bank holding company is not required to file its regulatory reports (a) Only an eligible applicant that prevailed on the to the Board on a consolidated basis. merits of an adversary proceeding may qualify for an (4) The employees of an applicant include all those award under this subpart. persons who were regularly providing services for remuneration for the applicant, under its direction Section 263.103— Eligibility of applicants. and control, on the date the adversary proceeding was initiated. Part-time employees are counted on a (a) General rule. To be eligible for an award under this proportional basis. subpart, an applicant must have been named as a party (5) The net worth and number of employees of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 835 applicant and all of its affiliates shall be aggregated written verification under oath or under penalty of to determine eligibility. As used in this subpart, peijury that the information provided in the applica- "affiliates" are: individuals, corporations, and enti- tion and supporting documents is true and correct. ties that directly or indirectly or acting through one (d) Service. The application and related documents or more entities control at least 25% of the voting shall be served on all parties to the adversary proceedshares of the applicant, and corporations and enti- ing in accordance with section 263.11, except that ties of which the applicant directly or indirectly statements of net worth shall be served only on owns or controls at least 25% of the voting shares. counsel for the Board. The Board may determine, in light of the actual (e) Presiding officer. Upon receipt of an application, relationship among the affiliated entities, that aggre- the Board shall, if feasible, refer the matter to the gation with regard to one or more of the applicant's administrative law judge who heard the underlying affiliates would be unjust and contrary to the pur- adversary proceeding. poses of this subpart and decline to aggregate the net worth and employees of such affiliate; alternatively, Section 263.105—Statement of net worth. the Board may determine that financial relationships of the applicant other than those described in this (a) General rule. A statement of net worth shall be filed paragraph constitute special circumstances that with the application for an award of fees. The statewould make an award unjust. ment shall reflect the net worth of the applicant and all affiliates of the applicant, as specified in section Section 263.104—Application for awards. 263.103(c)(5). In all cases, the administrative law judge or the Board may call for additional information (a) Time to file. An application and any other pleading needed to establish the applicant's net worth as of the or document related to the application may be filed initiation of the proceeding. with the Board whenever the applicant has prevailed (b) Contents. in the proceeding within 30 days after service of the (1) Except as otherwise provided herein, the statefinal order of the Board disposing of the proceeding. ment of net worth may be in any form convenient to (b) Contents. An application for an award of fees and the applicant which fully discloses all the assets and expenses under this subpart shall contain: liabilities of the applicant and all the assets and (1) The name of the applicant and an identification of liabilities of its affiliates, as of the time of the the proceeding; initiation of the adversary adjudication. Unaudited (2) A showing that the applicant has prevailed, and financial statements are acceptable for individual an identification of the way in which the applicant applicants as long as the statement provides a relibelieves that the position of the Board in the pro- able basis for evaluation, unless the administrative ceeding was not substantially justified; law judge or the Board otherwise requires. Financial (3) If the applicant is not an individual, a statement statements or reports filed with or reported to a of the number of its employees on the date the Federal or State agency, prepared before the initiaproceeding was initiated; tion of the adversary proceeding for other purposes, (4) A description of any affiliated individuals or and accurate as of a date not more than three entities, as defined in section 263.103(c)(5), or a months prior to the initiation of the proceeding, shall statement that none exist; be acceptable in establishing net worth as of the time (5) A declaration that the applicant, together with of the initiation of the proceeding, unless the adminany affiliates, had a net worth not more than the istrative law judge or the Board otherwise requires. maximum set forth in section 263.103(b) as of the (2) In the case of applicants or affiliates that are not date the proceeding was initiated, supported by a banks, net worth shall be considered for the purnet worth statement conforming to the requirements poses of this subpart to be the excess of total assets of section 263.105; over total liabilities, as of the date the underlying (6) A statement of the amount of fees and expenses proceeding was initiated, except as adjusted under for which an award is sought conforming to sec- section 263.103(c)(5). The net worth of a bank tion 263.107; and holding company shall be considered on a consoli- (7) Any other matters that the applicant wishes the dated basis. Assets and liabilities of individuals shall Board to consider in determining whether and in include those beneficially owned. what amount an award should be made. (3) If the applicant or any of its affiliates is a bank, (c) Verification. The application shall be signed by the the portion of the statement of net worth which applicant or an authorized officer of or attorney for the relates to the bank shall consist of a copy of the applicant. It shall also contain or be accompanied by a bank's last Consolidated Report of Condition and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

836 Federal Reserve Bulletin • October 1991 Income filed before the initiation of the adversary Section 263.107—Statement of fees and adjudication. Net worth shall be considered for the expenses. purposes of this subpart to be the total equity capital (or, in the case of mutual savings banks, the total (a) The application shall be accompanied by a statesurplus accounts) as reported, in conformity with ment fully documenting the fees and expenses for applicable instructions and guidelines, on the bank's which an award is sought. A separate itemized state- Consolidated Report of Condition and Income filed ment shall be submitted for each professional firm or for the last reporting date before the initiation of the individual whose services are covered by the applicaproceeding. tion, showing the hours spent in work in connection (c) Statement confidential. Unless otherwise ordered with the proceeding by each individual, a description by the Board or required by law, the statement of net of the specific services performed, the rate at which worth shall be for the confidential use of the Board, each fee has been computed, any expenses for which counsel for the Board, and the administrative law reimbursement is sought, the total amount claimed, judge. and the total amount paid or payable by the applicant or by any other person or entity for the services performed. The administrative law judge or the Board Section 263.106—Measure of awards. may require the applicant to provide vouchers, receipts, or other substantiation for any expenses (a) General rule. Awards shall be based on rates claimed. customarily charged by persons engaged in the business of acting as attorneys, agents, and expert wit- Section 263.108—Responses to application. nesses, provided that no award under this subpart for the fee of an attorney or agent shall exceed $75 per (a) By counsel for the Board. hour. No award to compensate an expert witness shall (1) Within 20 days after service of an application, exceed the highest rate at which the Board pays expert counsel for the Board may file an answer to the witnesses. An award may include the reasonable ex- application. penses of the attorney, agent, or expert witness as a (2) The answer shall explain in detail any objections separate item, if the attorney, agent, or expert witness to the award requested and identify the facts relied ordinarily charges clients separately for such ex- on in support of the Board's position. If the answer penses. is based on any alleged facts not already in the (b) Determination of reasonableness of fees. In deter- record of the proceeding, the answer shall include mining the reasonableness of the fee sought for an either supporting affidavits or a request for further attorney, agent, or expert witness, subject to the limits proceedings under section 263.109, or both. set forth above, the administrative law judge shall (b) Reply to answer. The applicant may file a reply consider the following: only if the Board has addressed in its answer any of the (1) If the attorney, agent, or expert witness is in following issues: that the position of the agency was private practice, his or her customary fee for like substantially justified, that the applicant unduly proservices. tracted the proceedings, or that special circumstances (2) The prevailing rate for similar services in the make an award unjust. Any reply authorized by this community in which the attorney, agent, or expert section shall be filed within 15 days of service of the witness ordinarily performs services; answer. If the reply is based on any alleged facts not (3) The time actually spent in the representation of already in the record of the proceeding, the reply shall the applicant; include either supporting affidavits or a request for (4) The time reasonably spent in light of the difficulty further proceedings under section 263.109, or both. or complexity of the issues in the proceeding; and (c) Additional response. Additional filings in the nature (5) Such other factors as may bear on the value of of pleadings may be submitted only by leave of the the services provided. administrative law judge. (c) Awards for studies. The reasonable cost of any study, analysis, test, project, or similar matter pre- Section 263.109—Further proceedings. pared on behalf of an applicant may be awarded to the extent that the charge for the service does not exceed (a) General rule. The determination of a recommended the prevailing rate payable for similar services, and the award shall be made by the administrative law judge study or other matter was necessary solely for prepa- on the basis of the written record of the adversary ration of the applicant's case and not otherwise re- adjudication, including any supporting affidavits subquired by law or sound business or financial practice. mitted in connection with the application, unless, on Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 837 the motion of either the applicant or Board counsel, or stances make an award unjust. The administrative law sua sponte, the administrative law judge or the Board judge shall file the record of the proceeding on the fee orders further proceedings to amplify the record such application upon the filing of the recommended decias an informal conference, oral argument, additional sion and, at the same time, serve upon each party a written submissions, or an evidentiary hearing. Such copy of the recommended decision, findings, conclufurther proceedings shall be held only when necessary sions, and proposed order. for full and fair resolution of the issues arising from the application and shall be conducted promptly and ex- Section 263.111—Action by the Board. peditiously. (b) Request for further proceedings. A request for (a) Exceptions to recommended decision. Within 20 further proceedings under this section shall specifi- days after service of the recommended decision, findcally identify the information sought or the issues in ings, conclusions, and proposed order, the applicant dispute and shall explain why additional proceedings or counsel for the Board may file written exceptions are necessary. thereto. A supporting brief may also be filed. (c) Hearing. The administrative law judge shall hold an (b) Decision by the Board. The Board shall render its oral evidentiary hearing only on disputed issues of decision within 90 days after it has notified the parties material fact which cannot be adequately resolved that the matter has been received for decision. The through written submissions. Board shall serve copies of the decision and order of the Board upon the parties. Judicial review of the Section 263.110—Recommended decision. decision and order may be obtained as provided in 5 U.S.C. 504(c)(2). (a) The administrative law judge shall file with the Board a recommended decision on the fee application 3. Other Amendments not later than 30 days after the submission of all pleadings and evidentiary material concerning the ap- A. 12 C.F.R. 225.6(a) is amended by removing the plication. The recommended decision shall include two references to "subpart B" from the second senwritten proposed findings and conclusions on the tence of that paragraph, and inserting in their place applicant's eligibility and its status as a prevailing "subpart C". party and, if applicable, an explanation of the reasons B. 12 C.F.R. 262.3(i)(2) is amended by removing the for any difference between the amount requested and last sentence of that paragraph and by adding the the amount of the recommended award. The recom- sentence "Any such formal hearing is conducted by an mended decision shall also include, if at issue, pro- administrative law judge in accordance with subparts posed findings as to whether the Board's position was A and B of the Board's Rules of Practice For Hearings substantially justified, whether the applicant unduly (Part 263 of this chapter)." as the new last sentence of protracted the proceedings, or whether special circum- that paragraph. ORDERS ISSUED UNDER THE FINANCIAL INSTITUTIONS REFORM, RECOVERY, AND ENFORCEMENT ACT ("FIRREA ORDERS") Recent orders have been issued by the Staff Director of the Division of Banking Supervision and Regulation and the General Counsel of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Acquired Surviving Approval Bank Holding Company Thrift Bank(s) Date BankAmerica Corporation, Santa Barbara Federal Bank of America August 12, 1991 San Francisco, California Savings & Loan National Trust and Association, Savings Association, Santa Barbara, San Francisco, California California Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

838 Federal Reserve Bulletin • October 1991 FIRREA Orders—Continued Acquired Surviving Approval Bank Holding Company Thrift Bank(s) Date Bank America Corporation, Olympic Savings Bank, Seattle-First National August 2, 1991 San Francisco, California Seattle, Washington Bank, Seafirst Corporation, Seattle, Washington Seattle, Washington BB&T Financial Corporation, BB&T Federal Savings Branch Banking and July 30, 1991 Wilson, North Carolina Bank of Pitt County, Trust Company, Greenville, North Wilson, North Carolina Carolina BB&T Savings Bank of Durham, Inc., Durham, North Carolina BB&T Federal Savings Bank of High Point, High Point, North Carolina Trans Financial Bancorp, Future Federal Savings Trans Financial Bank, August 30, 1991 Bowling Green, Kentucky Bank, N.A., Louisville, Kentucky Bowling Green, (Glasgow and Kentucky Tomkinsville Branches) APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 3 Effective Applicant(s) Bank(s) Date First of America Bank Corporation, Morgan Community Bancorp, Inc., August 19, 1991 Kalamazoo, Michigan Jacksonville, Illinois Morgan Community Bancorp, Inc., First of America Bank - Springfield, August 19, 1991 Jacksonville, Illinois N.A., Springfield, Illinois Volunteer Bancshares, Inc., Citizens State Bank, August 29, 1991 Jackson, Tennessee Trenton, Tennessee Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 839 Section 4 Effective Applicant(s) Bank(s) Date BankAmerica Corporation, BAC CA Interim Federal Savings August 9, 1991 San Francisco, California Bank, Santa Barbara, California BankAmerica Corporation, BAC WA Interim Federal Savings August 2, 1991 San Francisco, California Bank, Seafirst Corporation, Seattle, Washington Seattle, Washington Manufacturers Hanover Corporation, Bank of America, N.T. & S.A., August 1, 1991 New York, New York San Francisco, California Manufacturers Hanover Corporation, The New York Switch Corporation, August 29, 1991 New York, New York Fort Lee, New Jersey Trans Financial Bancorp, T.F. Savings Bank, August 30, 1991 Bowling Green, Kentucky Louisville, Kentucky 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 Alpha Financial Group, Inc., Washburn Bancshares, Chicago August 20, 1991 Minonk, Illinois Inc., Washburn, Illinois Bank Management Group, Ltd., First Winthrop Chicago August 22, 1991 Manchester, Iowa Bancorporation, Inc., Winthrop, Iowa Coalwell Bancorporation, Ogema State Bank, Minneapolis August 19, 1991 Ogema, Minnesota Ogema, Minnesota Crowell Bancshares, Inc., Crowell State Bank, Dallas August 15, 1991 Crowell, Texas Crowell, Texas Eufaula BancCorp, Inc., 1st AmBanc, Inc., Atlanta August 14, 1991 Eufaula, Alabama Destin, Florida Farmers and Merchants Rushmore Financial Minneapolis August 7, 1991 Investment Co., Services, Inc., Watertown, South Dakota Watertown, South Dakota First Bancshares, Inc., First Bank of Chicago August 15, 1991 Schaumburg, Illinois Schaumburg, Schaumburg, Illinois First Iowa State Shares, Inc., First Iowa State Bank, Chicago July 29, 1991 Albia, Iowa Albia, Iowa Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

840 Federal Reserve Bulletin • October 1991 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date First Medicine Lodge The C-M Company, Inc., Kansas City July 30, 1991 Bancshares, Inc., Medicine Lodge, Medicine Lodge, Kansas Kansas First North Financial Services, Karlstad State Bank, Minneapolis July 31, 1991 Inc., Karlstad, Minnesota Karlstad, Minnesota First of Huron Corporation, State Bank of Port Hope, Chicago August 2, 1991 Bad Axe, Michigan Port Hope, Michigan Great Lakes Financial Great Lakes Financial Chicago August 5, 1991 Resources, Inc. Resources, Inc., Employee Stock Ownership Homewood, Illinois Plan, Homewood, Illinois FS Bancshares, Inc., Fox Lake Bankshares, Chicago August 15, 1991 Madison, Wisconsin Inc., Fox Lake, Wisconsin Hansen Freeborn, Inc., First State Bank of Minneapolis August 2, 1991 Freeborn, Minnesota Freeborn, Freeborn, Minnesota Mid-America National Bancorp, Mid-America National Chicago August 16, 1991 Inc., Bank of Chicago, Chicago, Illinois Chicago, Illinois MidAmerican Corporation, Kaw Valley Bancshares, Kansas City August 21, 1991 Prairie Village, Kansas Inc., Kansas City, Kansas RMB Bancshares, Inc., Regional Missouri Bank, Kansas City August 12, 1991 Marceline, Missouri Marceline, Missouri Roscoe Financial Corporation, The Roscoe State Bank, Dallas August 12, 1991 Roscoe, Texas Roscoe, Texas Rushmore Financial Services, Rushmore State Bank, August 7, 1991 Minneapolis Inc., Rapid City, South Watertown, South Dakota Dakota The Scott Stuart Family Stuart Family August 1, 1991 Kansas City Partnership, Partnership, Lincoln, Nebraska Lincoln, Nebraska Security Pacific Corporation, Security Pacific Bank July 25, 1991 San Francisco Los Angeles, California Idaho, N.A., Security Pacific Bancorporation Coeur d'Alene, Idaho Northwest, Seattle, Washington Siouxland Bank Holding Dakota Bankshares, Inc., Minneapolis August 2, 1991 Company, Fargo, North Dakota Sioux Falls, South Dakota Wesbanco, Inc., Albright Bancorp, Inc., Cleveland August 8, 1991 Wheeling, West Virginia Kingwood, West Virginia West Bend Bancorp., Iowa State Bank, Chicago August 8, 1991 West Bend, Iowa West Bend, Iowa Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 841 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date Western Banshares, Inc., Western Bank, N.A., Kansas City July 29, 1991 Alliance, Nebraska Bridgeport, Nebraska Wisconsin Financial First National Bank and Chicago July 25, 1991 Bancorporation, Inc., Trust Company of Minneapolis, Minnesota Baraboo, Baraboo, Wisconsin The Bank of Edgar, Edgar, Wisconsin Section 4 Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date Allied Irish Banks, pic, Internet, Inc., Richmond August 5, 1991 Dublin, Ireland Reston, Virginia First Maryland Bancorp, Baltimore, Maryland Area Bancshares Corporation, First Federal Savings and St. Louis August 9, 1991 Owensboro, Kentucky Loan Association of Bowling Green, Bowling Green, Kentucky Bancorp Hawaii, Inc., Bancorp Investment San Francisco August 6, 1991 Honolulu, Hawaii Group, Ltd., Honolulu, Hawaii The Chase Manhattan Chase Home Mortgage New York August 2, 1991 Corporation, Corporation, New York, New York Tampa, Florida Eastern Iowa Bancshares, Midland Insurance Chicago August 15, 1991 Onslow, Iowa Agency, Onslow, Iowa First Virginia Banks, Inc., Ferraro & Pinholster, Richmond July 31, 1991 Falls Church, Virginia Inc., Fairfax, Virginia F.N.B. Corporation, Dollar Interim Savings Cleveland July 26, 1991 Hermitage, Pennsylvania Association, New Castle, Pennsylvania F.N.B. Corporation, Regency Consumer Cleveland July 24, 1991 Hermitage, Pennsylvania Discount Company, Inc., Scranton, Pennsylvania Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

842 Federal Reserve Bulletin • October 1991 Section 4—Continued Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date Norwest Corporation, AVCO Financial Services Minneapolis August 7, 1991 Minneapolis, Minnesota of Madison Heights, Norwest Financial Services, Inc., Inc., Des Moines, Iowa Des Moines, Iowa Norwest Financial, Inc., AVCO Mortgage and Des Moines, Iowa Acceptance, Inc., Des Moines, Iowa Skandinaviska Enskilda Banken, Enskilda Securities Inc., New York August 9, 1991 Stockholm, Sweden New York, New York United Community Bancorp, Roosevelt Interim Federal St. Louis July 30, 1991 Inc., Savings Bank, Greenfield, Illinois Gillespie, Illinois Yutan BanCorp, Inc., Yutan Insurance Agency, Kansas City August 21, 1991 Yutan, Nebraska Yutan, Nebraska APPLICATIONS APPROVED UNDER BANK MERGER ACT Reserve Effective Applicant(s) Bank(s) Bank Date Boatmen's Bank of Vandalia, The Boatmen's National St. Louis August 5, 1991 Vandalia, Missouri Bank of St. Louis, St. Louis, Missouri Central Banking Group, Inc., Lakeshore Bank, N.A., Kansas City August 1, 1991 Oklahoma City, Oklahoma Oklahoma City, Oklahoma PENDING CASES INVOLVING THE BOARD OF Fields v. Board of Governors, No. 3.91CV069 (N.D. GOVERNORS Ohio, filed February 5, 1991). Appeal of denial of request for information under the Freedom of Information Act. This list of pending cases does not include suits State of Illinois v. Board of Governors, No. 90-3824 against the Federal Reserve Banks in which the Board (7th Circuit, appeal filed December 19, 1990). Apof Governors is not named a party. peal of injunction restraining the Board from providing state examination materials in response to a Congressional subpoena. On November 30, 1990, In re Smouha, No. 91-B-13569 (Bkr. S.D. New York, the U.S. District Court for the Northern District of filed August 2, 1991). Ancillary proceeding under Illinois issued a preliminary injunction preventing the U.S. Bankruptcy Code brought by provisional the Board and the Chicago Reserve Bank from liquidators of BCCI Holdings (Luxembourg) S.A. providing documents relating to the state examinaand affiliated companies. On August 15, 1991, the tion in response to the subpoena. The House Combankruptcy court issued a temporary restraining mittee on Banking, Finance and Urban Affairs aporder staying certain judicial and administrative pealed the injunction. On July 25, 1991, the court of actions. appeals dismissed the appeal as moot. Hanson v. Greenspan, No. 91-1599 (D.D.C., filed Citicorp v. Board of Governors, No. 90-4124 (2d June 28, 1991). Suit for return of funds and financial Circuit, filed October 4, 1990). Petition for review of instruments allegedly owned by plaintiffs. Board order requiring Citicorp to terminate certain Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 843 insurance activities conducted pursuant to Delaware Home Equity Loan Consumer Protection Act. On law by an indirect nonbank subsidiary. On June 10, July 12, 1991, the Court of Appeals affirmed the 1991, the court of appeals granted the petition and majority of district court decision upholding the vacated the Board's order. Board's regulations, but remanded two issues to the Stanley v. Board of Governors, No. 90-3183 (7th Board for further action. Circuit, filed October 3,1990). Petition for review of Synovus Financial Corp. v. Board of Governors, No. Board order imposing civil money penalties on five 89-1394 (D.C. Circuit, filed June 21, 1989). Petition former bank holding company directors. On for review of Board order permitting relocation of a August 15, 1991, the court of appeals affirmed the bank holding company's national bank subsidiary Board's order. from Alabama to Georgia. Awaiting decision. Sibille v. Federal Reserve Bank of New York and MCorp v. Board of Governors, No. 89-2816 (5th Cir- Board of Governors, No. 90-CIV-5898 (S.D. New cuit, filed May 2,1989). Appeal of preliminary injunc- York, filed September 12, 1990). Appeal of denial tion against the Board enjoining pending and future of Freedom of Information Act request. On May enforcement actions against a bank holding company 13, 1991, the court heard argument on the plain- now in bankruptcy. On May 15, 1990, the Fifth tiffs motion for a Vaugn index and the Board's Circuit vacated the district court's order enjoining motion to dismiss. On July 9, the court denied the the Board from proceeding with enforcement actions plaintiff's motion and granted the Board's motion based on section 23A of the Federal Reserve Act, but to dismiss. upheld the district court's order enjoining such ac- Burke v. Board of Governors, No. 90-9509 (10th tions based on the Board's source-of-strength doc- Circuit, filed February 27, 1990). Petition for review trine. 900 F.2d 852 (5th Cir. 1990). On March 4, 1991, of Board orders assessing civil money penalties and the Supreme Court granted the parties' cross-petiissuing orders of prohibition. On July 31, 1991, the tions for certiorari, Nos. 90-913, 90-914. Oral argucourt of appeals affirmed the Board's orders. ment is scheduled for October 2, 1991. Kaimowitz v. Board of Governors, No. 90-3067 (11th MCorp v. Board of Governors, No. CA3-88-2693 Circuit, filed January 23, 1990). Petition for review (N.D. Texas, filed October 10, 1988). Application of Board order dated December 22, 1989, approving for injunction to set aside temporary cease and application by First Union Corporation to acquire desist orders. Stayed pending outcome of MCorp v. Florida National Banks. Petitioner objects to ap- Board of Governors, 900 F.2d 852 (5th Cir. 1990). proval on Community Reinvestment Act grounds. White v. Board of Governors, No. CU-S-88-623-RDF Consumers Union of U.S., Inc. v. Board of Gover- (D. Nevada, filed July 29, 1988). Age discrimination nors, No. 90-5186 (D.C. Circuit, filed June 29, complaint. Board's motion to dismiss or for sum- 1990). Appeal of District Court decision upholding mary judgment was denied on January 3, 1991. amendments to Regulation Z implementing the Awaiting trial date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Membership of the Board of Governors of the Federal Reserve System, 1913-91 APPOINTIVE MEMBERS1 Federal Reserve Date of initial Other dates and information relating Name District oath of office to membership2 Charles S. Hamlin Boston Aug. 10, 1914 Reappointed in 1916 and 1926. Served until Feb. 3, 1936.3 Paul M. Warburg New York do. Term expired Aug. 9, 1918. Frederic A. Delano Chicago do. Resigned July 21, 1918. W.P.G. Harding Atlanta do. Term expired Aug. 9, 1922. Adolph C. Miller San Francisco do. Reappointed in 1924. Reappointed in 1934 from the Richmond District. Served until Feb. 3, 1936.3 Albert Strauss New York Oct. 26, 1918 Resigned Mar. 15, 1920. Henry A. Moehlenpah Chicago Nov. 10, 1919 Term expired Aug. 9, 1920. Edmund Piatt New York June 8, 1920 Reappointed in 1928. Resigned Sept. 14, 1930. David C. Wills Cleveland Sept. 29, 1920 Term expired Mar. 4, 1921. John R. Mitchell Minneapolis May 12, 1921 Resigned May 12, 1923. Milo D. Campbell Chicago Mar. 14, 1923 Died Mar. 22, 1923. Daniel R. Crissinger Cleveland May 1, 1923 Resigned Sept. 15, 1927. George R. James St. Louis May 14, 1923 Reappointed in 1931. Served until Feb. 3, 1936.4 Edward H. Cunningham...Chicago do Died Nov. 28, 1930. Roy A. Young Minneapolis Oct. 4, 1927 Resigned Aug. 31, 1930. Eugene Meyer New York ..Sept. 16, 1930 Resigned May 10, 1933. Wayland W. Magee Kansas City May 18, 1931 Term expired Jan. 24, 1933. Eugene R. Black Atlanta May 19, 1933 Resigned Aug. 15, 1934. M.S. Symczak Chicago June 14, 1933 Reappointed in 1936 and 1948. Resigned May 31, 1961. J.J. Thomas Kansas City do Served until Feb. 10, 1936.3 Marriner S. Eccles San Francisco Nov. 15, 1934 Reappointed in 1936, 1940, and 1944. Resigned July 14, 1951. Joseph A. Broderick New York Feb. 3, 1936 Resigned Sept. 30, 1937. John K. McKee Cleveland . do Served until Apr. 4, 1946.3 Ronald Ransom Atlanta . do Reappointed in 1942. Died Dec. 2, 1947. Ralph W. Morrison Dallas Feb. 10, 1936 Resigned July 9, 1936. Chester C. Davis Richmond June 25, 1936 Reappointed in 1940. Resigned Apr. 15, 1941. Ernest G. Draper New York Mar. 30, 1938 Served until Sept. 1, 1950.3 Rudolph M. Evans Richmond Mar. 14, 1942 Served until Aug. 13, 1954.3, James K. Vardaman, Jr. ..St. Louis Apr. 4, 1946 Resigned Nov. 30, 1958. Lawrence Clayton Boston Feb. 14, 1947 Died Dec. 4, 1949. Thomas B. McCabe Philadelphia Apr. 15, 1948 Resigned Mar. 31, 1951. Edward L. Norton Atlanta Sept. 1, 1950 Resigned Jan. 31, 1952. Oliver S. Powell Minneapolis .do Resigned June 30, 1952. Wm. McC. Martin, Jr New York April 2, 1951 Reappointed in 1956. Term expired Jan. 31, 1970. A.L. Mills, Jr San Francisco Feb. 18, 1952 Reappointed in 1958. Resigned Feb. 28, 1965. J.L. Robertson Kansas City do Reappointed in 1964. Resigned Apr. 30, 1973. C. Canby Balderston Philadelphia Aug. 12, 1954 Served through Feb. 28, 1966. Paul E. Miller Minneapolis Aug. 13, 1954 Died Oct. 21, 1954. Chas. N. Shepardson Dallas Mar. 17, 1955 Retired Apr. 30, 1967. G.H. King, Jr Atlanta Mar. 25, 1959 Reappointed in 1960. Resigned Sept. 18, 1963. George W. Mitchell Chicago Aug. 31, 1961 Reappointed in 1962. Served until Feb. 13, 1976.3 J. Dewey Daane Richmond Nov. 29, 1963 Served until Mar. 8, 1974.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

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 Bank acceptances outstanding credit A22 Prime rate charged by banks on short-term A5 Reserves and borrowings—Depository business loans institutions A23 Interest rates-money and capital markets A6 Selected borrowings in immediately available A24 Stock market—Selected statistics funds—Large member banks A25 Selected financial institutions—Selected assets and liabilities POLICY INSTRUMENTS FEDERAL FINANCE A7 Federal Reserve Bank interest rates A8 Reserve requirements of depository institutions 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 All Maturity distribution of loan and security A31 U.S. government securities dealers-Positions holdings and financing A32 Federal and federally sponsored credit agencies — Debt outstanding MONETARY AND CREDIT AGGREGATES A12 Aggregate reserves of depository institutions SECURITIES MARKETS AND and monetary base CORPORATE FINANCE A13 Money stock, liquid assets, and debt measures A15 Bank debits and deposit turnover A33 New security issues-State and local A16 Loans and securities-All commercial banks governments and corporations A34 Open-end investment companies—Net sales and asset position COMMERCIAL BANKING INSTITUTIONS A34 Corporate profits and their distribution A34 Total nonfarm business expenditures on new A17 Major nondeposit funds plant and equipment A18 Assets and liabilities, last-Wednesday-of-month A35 Domestic finance companies—Assets and series liabilities and business credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • October 1991 Domestic Financial Statistics — Continued A56 Foreign branches of U. S. banks - Balance sheet data A58 Selected U.S. liabilities to foreign official REAL ESTATE institutions A36 Mortgage markets A37 Mortgage debt outstanding REPORTED BY BANKS IN THE UNITED STATES CONSUMER INSTALLMENT CREDIT A58 Liabilities to and claims on foreigners A3 8 Total outstanding and net change A59 Liabilities to foreigners A39 Terms A61 Banks' own claims on foreigners A62 Banks' own and domestic customers' claims on foreigners FLOW OF FUNDS A62 Banks' own claims on unaffiliated foreigners A63 Claims on foreign countries-Combined A40 Funds raised in U.S. credit markets domestic offices and foreign branches A42 Direct and indirect sources of funds to credit markets A43 Summary of credit market debt outstanding REPORTED BYNONBANKING BUSINESS A44 Summary of credit market claims, by holder ENTERPRISES IN THE UNITED STATES A64 Liabilities to unaffiliated foreigners Domestic Nonfinancial Statistics A65 Claims on unaffiliated foreigners SELECTED MEASURES SECURITIES HOLDINGS AND TRANSACTIONS A45 Nonfinancial business activity-Selected measures A66 Foreign transactions in securities A46 Labor force, employment, and unemployment A67 Marketable U.S. Treasury bonds and A47 Output, capacity, and capacity utilization notes—Foreign transactions A48 Industrial production—Indexes and gross value A50 Housing and construction A51 Consumer and producer prices INTEREST AND EXCHANGE RATES A52 Gross national product and income A53 Personal income and saving A68 Discount rates of foreign central banks A68 Foreign short-term interest rates A69 Foreign exchange rates International Statistics A71 Guide to Tabular Presentation, Statistical Releases, and Special SUMMARY STATISTICS Tables A54 U.S. international transactions-Summary A55 U.S. foreign trade A55 U.S. reserve assets SPECIAL TABLES A55 Foreign official assets held at Federal Reserve Banks A72 Terms of lending at commercial banks, May 1991 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 Percent annual rate of change, seasonally adjusted1 1990 1991 1991 MMoonneettaarryy aanndd ccrreeddiitt aaggggrreeggaatteess Q3 Q4 Ql Q2 Mar. Apr. May June July Reserves of depository institutions2 1 --..55 33..99 99..22 33..44 --11..11 --44..11 1166..44 88..66'' 22..00 ? Required -.5 1.7 4.7 9.3 14.7 -.6 16.7 9.3' 4.5 3 Nonborrowed 3.8 7.8 9.1 3.8 -.8 -3.9 14.7 7.8 -4.4 4 Monetary base3 9.1 9.9 14.5 3.9 6.0 -1.5 3.4 3.8 5.5 Concepts of money, liquid assets, and debt4 5 Ml 33..77 33..44 55..99 77..33'' 99..55 --11..33'' 1133..55 99..66 1.8 6 M2 3.0 2.0 3.4 4.6 7.4 2.8 4.2' 1.4' -3.7 7 M3 1.6 .9 4.0 1.8r 2.5 ,5r .5' -2.0' -4.6 8 L 1.9 1.7 3.2r -2.7 -.2' -8.7' -5.8' 7.3 n.a. 9 Debt 7.1 5.5 4.8 4 .<y 4.3 1.4' 5.2' 5.6 n.a. Nontransaction components 10 In M25 2.7 1.5 2.6 3.7 6.7 4.1 1.1' -1.3' -5.6 11 In M3 only6 -3.8 -3.5 6.7 -io.r -18.C -8.9' -15.1' -17.1 -8.4 Time and savings deposits Commercial banks 1? 5.9 5.2 10.2 16.4 15.4 18.1 14.4' 2211..CC 13.9 13 MMDAs 8.2 3.5 6.1 16.8' 17.8 15.1' 18.6 13.8 10.4 14 Small-denomination time' 15.5 11.5 8.8 -1.7 4.6 -7.3 -5.8 1.0 -1.4 15 Large-denomination time8,9 -2.2 -8.5 12.0 .3' -3.6 -4.2' 2.4' -3.6' -12.1 Thrift institutions 16 -3.3 -7.3 -.5 16.6' 14.7 20.7 1188..11 1111..44'' 88..00 17 MMDAs -7.7 -7.2 -.9 21.2' 18.7 23 .(y 30.7 12.3 14.0 18 Small-denomination time' -11.0 -8.6 -9.8 -13.7r -14.2 -9.6 -14.9' -26.5' -22.1 19 Large-denomination time -27.3 -26.3 -31.9 -35.r -34.5 -30.1 -46.3' -42.4' -38.1 Money market mutual funds 7,0 General purpose and broker-dealer 1100..00 99..88 1188..22 66..77 1177..88 22..33 33..00 --22..66 --1166..11 21 Institution-only 21.6 30.4 49.9 23.0 23.3 30.4 4.9 -23.8 -12.6 Debt components4 ?? 14.4 1111..66 1122..22 55..44 5.1 --44..11 1100..33 1144..99 n.a. 23 Nonfederal 4.8 3.7 2.4 3.5' 4.1 3.2' 3.5' 2.6 n.a. 1. Unless otherwise noted, rates of change are calculated from average banking offices in the United Kingdom and Canada, and balances in both taxable amounts outstanding in preceding month or quarter. and tax-exempt, institution-only money market mutual funds. Excludes amounts 2. Figures incorporate adjustments for discontinuities associated with regula- held by depository institutions, the U.S. government, money market funds, and tory changes in reserve requirements. (See also table 1.20.) foreign banks and official institutions. Also subtracted is the estimated amount of 3. Seasonally adjusted, break-adjusted monetary base consists of (1) season- overnight RPs and Eurodollars held by institution-only money market mutual ally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally funds. adjusted currency component of the money stock, plus (3) (for all quarterly L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term reporters on the "Report of Transaction Accounts, Other Deposits and Vault Treasury securities, commercial paper and bankers acceptances, net of money Cash" and for all those weekly reporters whose vault cash exceeds their required market mutual fund holdings of these assets. reserves) the seasonally adjusted, break adjusted difference between current vault Debt: Debt of domestic nonfinancial sectors consists of outstanding credit cash and the amount applied to satisfy current reserve requirements. market debt of the U.S. government, state and local governments, and private 4. Composition of the money stock measures and debt is as follows: nonfinancial sectors. Private debt consists of corporate bonds, mortgages, con- Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults sumer credit (including bank loans), other bank loans, commercial paper, bankers of depository institutions; (2) travelers checks of nonbank issuers; (3) demand acceptances, and other debt instruments. Data are derived from the Federal deposits at all commercial banks other than those due to depository institutions, Reserve Board's flow of funds accounts. Data on debt of domestic nonfinancial the U.S. government, and foreign banks and official institutions, less cash items in sectors are monthly averages, derived by averaging adjacent month-end levels. the process of collection and Federal Reserve float; and (4) other checkable Growth rates for debt reflect adjustments for discontinuities over time in the levels deposits (OCDs), consisting of negotiable order of withdrawal (NOW) and of debt presented in other tables. automatic 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 repurchase agreements (RPs)—in amounts of by institution-only money market mutual funds. less than $100,000), and balances in both taxable and tax-exempt general 7. Small-denomination time deposits—including retail RPs—are those issued purpose and broker-dealer money market mutual funds. Excludes individual in amounts of less than $100,000. All IRA and Keogh accounts at commercial retirement accounts (IRA) and Keogh balances at depository institutions and banks and thrifts are subtracted from small time deposits. money market funds. Also excludes all balances held by U.S. commercial 8. Large-denomination time deposits are those issued in amounts of $100,000 banks, money market funds (general purpose and broker-dealer), foreign or more, excluding those booked at international banking facilities. governments and commercial 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 • October 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 Factor 1991 1991 May June July June 19 June 26 July 3 July 10 July 17 July 24 July 31 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 286,418 291,288 294,061 290,052 291,196 294,771 296,684 294,025 292,545 291,567 U.S. government securities1' 2 2 Bought outright-system account 243,104 247,135 249,075 246,321 246,157 247,102 248,003 249,038 250,830 249,318 3 Held under repurchase agreements ... 298 527 2,766 0 1,195 4,372 6,319 2,623 0 0 Federal agency obligations2^ 4 Bought outright 6,246 6,213 6,196 6,213 6,213 6,213 6,213 6,213 6,190 6,159 5 Held under repurchase agreements ... 29 98 241 0 149 624 526 190 0 0 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 60 201 88 44 84 574 37 145 146 32 8 Seasonal credit 151 222 320 214 270 288 292 300 339 362 9 Extended credit 89 7 45 6 9 7 3 3 4 186 10 Float 492 402 474 465 99 664 490 405 349 630 11 Other Federal Reserve assets 35,949 36,481 34,856 36,789 37,019 34,926 34,801 35,109 34,686 34,880 12 Gold stock 11,058 11,060 11,062 11,062 11,062 11,062 11,062 11,062 11,062 11,062 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 20,670 20,723 20,769 20,724 20,738 20,752 20,759 20,767 20,775 20,783 ABSORBING RESERVE FUNDS 15 Currency in circulation 288,789 290,896 293,560 290,921 290,567 292,317 294,859 294,311 292,888 292,278 16 Treasury cash holdings 641 623 615 623 620 616 621 621 613 606 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 5,275 6,428 6614 5,977 5,745 9,507 7,081 6,646 6,033 6,470 18 Foreign 227 228 242 226 216 271 244 229 221 239 19 Service-related balances and adjustments 3,504 3,194 3,239 3,253 3,178 3,277 3,218 3,144 3,316 3,260 20 Other 222 210 219 204 224 215 189 287 192 213 21 Other Federal Reserve liabilities and capital 7,415 8,288 7,812 8,241 8,190 7,344 7,646 7,912 7,909 8,006 22 Reserve balances with Federal Reserve Banks3 22,091 23,223 23,609 22,412 24,275 23,056 24,665 22,721 23,227 22,357 End-of-month figures Wednesday figures 1991 1991 May June July June 19 June 26 July 3 July 10 July 17 July 24 July 31 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 291,168 291,795 293,653 291,139 294,980 294,039 299,245 293,558 290,994 293,653 U.S. government securities1' 2 2 Bought outright-system account 248,111 247,484 250,978 248,626 246,578 247,350 250,530 250,225 249,177 250,978 3 Held under repurchase agreements ... 0 962 0 0 4,611 4,393 6,155 682 0 0 Federal agency obligations 4 Bought outright 6,213 6,213 6,159 6,213 6,213 6,213 6,213 6,213 6,159 6,159 5 Held under repurchase agreements ... 0 477 0 0 748 476 424 150 0 0 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions2 7 Adjustment credit 20 1,182 85 61 68 31 24 33 81 85 8 Seasonal credit 163 290 359 241 275 286 295 316 357 359 9 Extended credit 23 7 130 8 8 5 2 2 6 130 10 Float 457 433 900 -711 -792 748 672 962 420 900 11 Other Federal Reserve assets 36,181 34,747 35,043 36,700 37,271 34,535 34,931 34,975 34,793 35,043 12 Gold stock 11,057 11,062 11,062 11,062 11,062 11,062 11,062 11,062 11,062 11,062 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 20,694 20,752 20,783 20,724 20,738 20,752 20,759 20,767 20,775 20,783 ABSORBING RESERVE FUNDS 15 Currency in circulation 290,507 291,563 292,596 290,907 290,941 294,317 295,198 293,659 292,497 292,596 16 Treasury cash holdings 629 613 605 622 613 621 621 621 606 605 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 6,619 11,822 5,831 7,483 5,419 6,371 5,043 7,111 4,644 5,831 18 Foreign 1% 224 314 244 233 208 186 219 200 314 19 Service-related balances and adjustments 3,185 3,283 3,260 3,253 3,178 3,277 3,218 3,144 3,316 3,260 20 Other 225 213 212 210 262 199 184 232 174 212 21 Other Federal Reserve liabilities and capital 8,570 7,082 8165 7,878 8,107 7,256 7,847 7,633 7,758 8,165 22 Reserve balances with Federal Reserve Banks3 23,008 18,826 24,533 22,346 28,046 23,622 28,787 22,787 23,655 24,533 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 sum to totals because of rounding. correspond with the H.4.1 statistical release. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A5 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Monthly averages9 RRReeessseeerrrvvveee ccclllaaassssssiiifffiiicccaaatttiiiooonnn 1988 1989 1990 1991 Dec. Dec. Dec. Jan. Feb. Mar. Apr. May June July 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 37,837 35,436 30,237 22,023 19,827 21,734 23,508 22,287 23,685r 23,273 22222 TTTTToooootttttaaaaalllll vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh33333 28,204 29,822 31,777 33,220 33,477 30,896 30,556 30,720 30,524 31,322 33333 AAAAAppppppppppllllliiiiieeeeeddddd vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh 25,909 27,374 28,884 28,969 28,724 26,853 26,793 26,776 26,722 27,390 44444 SSSSSuuuuurrrrrpppppllllluuuuusssss vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh 2,295 2,448 2,893 4,250 4,753 4,043 3,763 3,944 3,801 3,932 55555 TTTTToooootttttaaaaalllll rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 63,746 62,810 59,120 50,992 48,551 48,586 50,301 49,063 50,407r 50,663 66666 RRRRReeeeeqqqqquuuuuiiiiirrrrreeeeeddddd rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 62,699 61,888 57,456 48,824 46,743 47,408 49,271 48,033 49,399 49,754 77777 EEEEExxxxxccccceeeeessssssssss rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss77777 1,047 922 1,665 2,168 1,809 1,179 1,030 1,029 l,008r 908 88888 TTTTToooootttttaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 1,716 265 326 534 252 241 231 303 340 607 99999 SSSSSeeeeeaaaaasssssooooonnnnnaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 130 84 76 33 37 55 79 151 222 317 1111100000 EEEEExxxxxttttteeeeennnnndddddeeeeeddddd cccccrrrrreeeeedddddiiiiittttt aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 1,244 20 23 27 34 53 86 88 8 46 Biweekly averages of daily figures for weeks ending 1991 Apr. 3 Apr. 17 May 1 May 15 May 29 June 12 June 26 July 10r July 24 Aug 7 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 21,949 24,257 23,061 22,907 21,363 24,027 23,344 23,853 22,977 23,036 22222 TTTTToooootttttaaaaalllll vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh33333 31,067 30,309 30,705 30,340 31,235 29,787 30,926 31,327 31,351 31,257 33333 AAAAAppppppppppllllliiiiieeeeeddddd vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh ^^^^^ 26,989 26,762 26,781 26,532 27,114 26,115 27,048 27,404 27,456 27,237 44444 SSSSSuuuuurrrrrpppppllllluuuuusssss vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh 4,078 3,547 3,924 3,809 4,121 3,672 3,878 3,923 3,895 4,019 55555 TTTTToooootttttaaaaalllll rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss66666 48,938 51,019 49,842 49,438 48,477 50,142 50,392 51,256 50,433 50,274 66666 RRRRReeeeeqqqqquuuuuiiiiirrrrreeeeeddddd rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 47,564 50,218 48,645 48,469 47,358 49,411 49,110 50,374 49,493 49,391 77777 EEEEExxxxxccccceeeeessssssssss rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 1,374 801 1,198 970 1,120 731 1,282 883 940 883 88888 TTTTToooootttttaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 212 224 244 314 299 283 314 601 469 892 99999 SSSSSeeeeeaaaaasssssooooonnnnnaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 68 70 92 138 165 176 242 290 320 351 1111100000 EEEEExxxxxttttteeeeennnnndddddeeeeeddddd cccccrrrrreeeeedddddiiiiittttt aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 62 76 103 128 59 9 8 5 4 188 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 • October 1991 1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Banks1 Millions of dollars, averages of daily figures 1991, week ending Monday Maturity and source Feb. 11 Feb. 18 Feb. 25 Mar. 4 Mar. 11 Mar. 18 Mar. 25 Apr. 1 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 77,369 77,708 74,061 80,759 79,628 75,762 68,931 71,048 2 For all other maturities 16,373 16,890 15,830 15,491 16,159 17,951 17,530 17,436 From other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies 3 For one day or under continuing contract 31,641 32,389 30,568 31,090 30,565 27,997 31,312 29,035 4 For all other maturities 20,923 20,465 20,124 20,826 20,988 21,676 21,386 20,783 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 8,867 9,251 10,175 10,522 10,881 10,781 11,007 8,015 6 For all other maturities 21,241 18,651 17,298 17,441 17,643 18,006 17,847 18,183 All other customers 8 7 F F o o r r a o l n l e o d th a e y r o m r a u t n u d ri e t r ie c s ontinuing contract 2 1 5 1 , , 1 8 1 5 9 5 2 1 6 1 , , 2 63 18 5 2 1 5 1 , , 4 2 0 9 8 2 2 1 4 1 , , 9 3 7 4 2 0 2 1 3 1 , , 7 5 6 8 6 4 2 1 4 1 , ,8 67 8 7 8 2 1 4 1 , , 1 9 4 8 7 3 2 1 2 2 , , 9 5 0 8 8 7 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 42,209 42,099 40,092 46,140 42,822 41,746 39,240 41,515 10 To all other specified customers 19,334 19,820 18,528 21,409 17,879 20,324 17,401 15,289 1. Banks with assets of $4 billion or more as of Dec. 31, 1988. 2. Brokers and nonbank dealers in securities; other depository institutions; These data also appear in the Board's H.5 (507) release. For address, see inside foreign banks and official institutions; and United States government agencies, front cover. 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 8/30/91 date rate 8/30/91 date rate 8/30/91 date rate Effective date Boston 5W 4/30/91 6 5 Vi 4/30/91 6 6.15 8/22/91 6.35 8/8/91 New York 4/30/91 4/30/91 8/22/91 8/8/91 Philadelphia 4/30/91 4/30/91 8/22/91 8/8/91 Cleveland 5/1/91 5/1/91 8/22/91 8/8/91 Richmond 4/30/91 4/30/91 8/22/91 8/8/91 Atlanta 4/30/91 4/30/91 8/22/91 8/8/91 Chicago 4/30/91 4/30/91 8/22/91 8/8/91 St. Louis 5/2/91 5/2/91 8/22/91 8/8/91 Minneapolis 4/30/91 4/30/91 8/22/91 8/8/91 Kansas City 4/30/91 4/30/91 8/22/91 8/8/91 Dallas 4/30/91 4/30/91 8/22/91 8/8/91 San Francisco ... 5 Vl 4/30/91 6 5W 4/30/91 6 6.15 8/22/91 6.35 8/8/91 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. B o an f k Effective date A le l v l e F l) . — R. B o a f n k Effective date A le l v l e F l) . — R. Banks N.Y. Banks N.Y. Banks In effect Dec. 31, 1977. 6 6 1981---MMaayy 5 13-14 14 1985—May 20 7W-8 7W 1978--Jan. 9 6-6 Vl 6 Vl 8 14 14 24 7W 7W 20 6 Vl 6 Vl Nov. 7 13-14 13 May 11 6W-7 7 6 13 13 1986—Mar. 7 7-7 W 7 12 7 7 Dec. 4 12 12 10 7 7 July 3 7-7 Va 7V4 Apr. 21 6W-7 6W A Se u p g t . . 2 2 1 2 1 0 7 7 V V 8 4 4 m 8 73 /4 1982---JJ AA uu uu llyy gg .. 7 2 ? 0 3 n n w n -i w - i 1 w 2 1 1 1 1 1 1 W W J A u u ly g . 2 2 1 1 2 1 5 5 W W 6 -6 5 6 5 W W Oct. 2 1 0 6 8 8 -8 V W l 8 8 W Vi 1 3 6 10 11 W 1 1 0 1 W 1987—Sept. 4 5W-6 6 Nov. 1 3 8W 9 - V 9 l W 9 9 V V i i 7 3 7 0 10- 1 1 0 0 W 1 1 0 0 11 6 6 Oct. 1? 91/2-10 9W 1988—Aug. 9 6-6W 6W 1979--July 20 10 10 n . 9 W 9 Vi 11 6W 6W Aug. 17 10-1 OVl 10W Nov. ?7 9-9 W 9 20 10W 10W 76 9 9 1989—Feb. 24 6W-7 7 Sept. 19 10W-11 11 Dec. 14 m-9 9 7 7 21 11 11 15 8 Vi-9 8 W 27 Oct. 8 11-12 12 17 8W 8W 6W 6W 10 12 12 1990—Dec. 19 1984--Apr. 9 . 8W-9 9 6-6W 6 1980--Feb. 15 12-13 13 B 9 9 1991—Feb. 1 6 6 May 2 1 9 9 12 1 - 3 1 3 1 1 3 3 Nov. 7 7 1 6 m 8 -9 V l m 8W Apr. 30 4 5W 5W — 6 5 5 W W 30 12 12 Dec. 74 May 2 June 13 11-12 11 In effect Aug. 30, 1991 5W 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 W 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 thirty 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 wiU be charged, but Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Financial Statistics • October 1991 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Depository institution requirements after implementation of the Monetary Control Act Type of deposit, and deposit interval Net transaction accounts3' 4 $0 million-$41.1 million 12/18/90 More than $41.1 million 12/18/90 Nonpersonal time deposits5' 6 12/27/90 Eurocurrency liabilities7 12/27/90 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 Eurocurrency 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 1991 Type of transaction 1989 1990 Mar. Apr May U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) 2 1 Tr G e G a r r s o o u s s r s s y s p b a u l i r l e l c s s h ases 8,2 5 2 8 3 7 1 1 2 4 , ,2 8 8 18 4 24 7, , 2 7 9 3 1 9 2,350 0 12 0 0 1,967 0 313 0 90 0 8 3,4110 3 Exchanges 241,876 231,211 241,086 16,939 23,702r 21,381 18,808 21,981 27,5480 4 Redemptions 2,200 12,730 4,400 3,000 1,000 0 0 0 5 6 Ot G G he r r r o o s s s s s w p i s t a u h l r i e n c s h 1 a s y e e s ar 2,1760 3270 4250 0 0 0 0 10 0 0 700 0 V 0 2000 7 8 9 R M Ex e a d c tu h em r a i n t p y g t e i s o s h n i s f ts -2 2 4 3 , , 5 85 8 4 80 -2 2 5 8 , , 7 8 5 8 4 0 3 8 0 -2 2 7 5 , , 4 6 2 3 4 8 0 1,9910 0 -1,3 9 2 8 6 9 0 -3 2 , , 0 2 4 9 5 2 0 -1,8 4 7 1 7 3 0 4 - , 9 3 9 2 3 4 0 -4 5 , , 8 1 8 7 7 5 0 10 1 t G o r 5 o s y s e p a u rs r chases 5,485 1,436 250 0 0 0 2,950 or 0 0 11 Gross sales 800 490 200 200 0 0 0 0 1 1 2 3 M Ex a c t h ur a i n ty g e s s h ifts -1 2 7 2 , , 7 51 2 5 0 -2 2 5 3 , , 5 2 3 5 4 0 -2 2 1 5 , , 7 4 7 1 0 0 -1,9910 -7 9 7 2 8 9 -1 2 , , 9 54 0 5 9 - 1 2 ,8 1 7 3 7 -4,2 7 1 7 4 7 -3 4 , , 4 28 1 7 0 14 5 t G o r 1 o 0 s s y p e u ar r s c hases 1,579 287 0 0 0 350 50 0 0 0 1 1 1 5 6 7 G E M x r a o c t s h u s a r i n s ty g a l e e s s s h ifts -5 1 , , 9 7 1 4 9 7 6 7 5 -2 1 , , 2 9 3 3 2 1 4 9 -2,1 7 1 8 8 0 6 9 0 10 0 00 -2 3 1 9 2 7 0 - 4 2 0 3 0 0 -200 0 0 -1 2 1 1 0 6 0 -1,6 4 0 0 5 0 More than 10 years 0 0 1 1 8 9 G G r r o o s s s s p sa u l r e c s h ases 1,3908 2804 0 0 0 0 20 Maturity shifts -188 ,086 -1,681 -361 -160 21 Exchanges 275 600 1,226 100 200 22 All G r m o a s t s u p ri u ti r e c s h ases 18,863 16,617 25,414 0 0 2,417 4,013 7,397 3,6110 23 Gross sales 1,562 13,337 7,591 2,650 120 0 0 0 0 24 Redemptions 2,200 13,230 4,400 3,000 1,000 0 0 0 Matched transactions 25 Gross sales 1,168,484 1,323,480 1,369,052 125,844 130,751 127,589 151,096 185,662 147,796 26 Gross purchases 1,168,142 1,326,542 1,363,434 123,442 131,087 127,502 151,412 187,032 147,803 Repurchase agreements2 27 Gross purchases 152,613 129,518 219,632 45,684 36,337 44,688 23,821 16,173 9,241 28 Gross sales 151,497 132,688 202,551 31,022 38,462 44,809 38,589 16,173 9,241 29 Net change in U.S. government securities 15,872 24,886 6,608 -2,909 2,209 -10,439 8,768 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 2,091 4,416 3,546 2,518 640 885 34 Gross sales 56,471 40,411 40,461 1,021 3,571 4,466 3,784 640 885 35 Net change in federal agency obligations . 198 -2,018 1,192 1,070 -920 -1,266 36 Total net change in System Open Market Account 16,070 -12,073 26,078 7,678 -2,064 1,290 -11,705 8,676 3,618 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 sum to acceptances in repurchase agreements. totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Nonfinancial Statistics • October 1991 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month Account 1991 1991 July 3 July 10 July 17 July 24 July 31 May 31 June 30 July 31 Consolidated condition statement ASSETS 1 Gold certificate account 11,062 11,062 11,062 11,062 11,062 11,057 11,062 11,062 2 Special drawing rights certificate account 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 3 Coin 554 536 535 540 544 577 575 544 Loans 4 To depository institutions 323 321 351 444 574 206 1,479 574 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 6,213 6,213 6,213 6,159 6159 6,213 6,2136 6,159 8 Held under repurchase agreements 476 424 150 0 0 0 477 0 U.S. Treasury securities 9 Bought outright2 247,350 250,530 250,225 249,177 250,978 248,111 247,484 250,978 10 Bills 119,181 122,360 121,556 120,383 122,183 119,942 119,314 122,183 11 Notes 96,707 96,707 97,207 97,332 97,332 %,707 %,707 97,332 12 Bonds 31,463 31,463 31,463 31,463 31,463 31,463 31,463 31,463 13 Held under repurchase agreements 4,393 6,155 682 0 0 0 %2 0 14 Total U.S. Treasury securities 251,743 256,684 250,907 249,177 250,978 248,111 248,446 250,978 15 Total loans and securities 258,755 263,642 257,622 255,780 257,710 254,530 256,615 257,710 16 Items in process of collection 6,237 5,216 5,589 5,199 5,547 5,531 4,859 5,547 17 Bank premises 932 932 938 938 940 915 931 940 Other assets 18 Denominated in foreign currencies3 28,714 28,719 28,801 28,378 28,497 30,835 28,682 28,497 19 All other 5,248 5,527 5,201 5,436 5,577 4,416 5,379 5,577 20 Total assets 321,520 325,651 319,767 317,352 319,8% 317,879 318,121 319,8% Liabilities 21 Federal Reserve notes 274,741 275,595 274,048 272,869 272,%2 271,019 272,000 272,%2 Deposits 22 Depository institutions 27,217 32,024 25,534 27,162 27,871 26,223 22,202 27,871 23 U.S. Treasury—General account 6,371 5,043 7,111 4,644 5,831 6,619 11,822 5,831 24 Foreign—Official accounts 208 186 219 200 314 1% 224 314 25 Other 199 184 232 174 212 225 213 212 26 Total deposits 33,994 37,437 33,0% 32,179 34,228 33,263 34,460 34,228 27 Deferred credit items 5,530 4,772 4,990 4,547 4,541 5,028 4,579 4,541 28 Other liabilities and accrued dividends 2,457 2,633 2,232 2,322 2,370 2,614 2,392 2,370 29 Total liabilities 316,721 320,438 314,365 311,917 314,102 311,923 313,431 314,102 Capital Accounts 30 Capital paid in 2,548 2,547 2,548 2,556 2,556 2,545 2,546 2,556 31 Surplus 2,185 2,307 2,364 2,390 2,423 2,216 2,114 2,423 32 Other capital accounts 66 360 489 490 815 1,195 31 815 33 Total liabilities and capital accounts 321,520 325,651 319,767 317,352 319,8% 317,879 318,121 319,8% 34 MEMO: Marketable U.S. Treasury securities held in custody for foreign and international accounts 239,937 239,504 239,898 239,559 244,682 249,523 243,233 244,682 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to Bank) 328,888 331,674 335,752 339,224 342,614 315,843 325,417 342,614 36 LESS: Held by bank 54,148 56,079 61,705 66,356 69,652 44,824 53,450 69,652 37 Federal Reserve notes, net 274,741 275,595 274,048 272,869 272, %2 271,019 271,967 272,%2 Collateral held against notes net: 38 Gold certificate account 11,062 11,062 11,062 11,062 11,062 11,057 11,062 11,062 39 Special drawing rights certificate account 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 40 Other eligible assets 0 0 0 0 0 0 0 0 41 U.S. Treasury and agency securities 253,661 254,515 252,968 251,788 251,882 249,944 250,887 251,882 42 Total collateral 274,741 275,595 274,048 272,869 272,%2 271,018 271,%7 272,%2 1. Some of these data also appear in the Board's H.4.1 (S03) 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 gggrrrooouuupppiiinnnggg 1991 1991 July 3 July 10 July 17 July 24 July 31 May 31 June 28r July 31 323 321 351 444 574 206 1,479 574 2 3 4 9 W 1 1 6 i t d d h a a i y n y s s 1 t t 5 o o d 9 1 a 0 y y d s e a ar y s 2 1 1 0 8 0 4 2 1 0 1 8 0 3 3 2 2 5 6 0 3 6 8 0 5 0 3 1 9 8 3 0 1 1 10 0 0 0 6 1,3 1 3 4 6 0 3 3 1 9 8 3 0 1 5 Acceptances—Total 0 0 0 0 0 0 0 0 6 Within 15 days 0 0 0 0 0 0 0 0 7 16 days to 90 days 0 0 0 0 0 0 0 0 8 91 days to 1 year 0 0 0 0 0 0 0 0 9 U.S. Treasury securities—Total 251,743 256,684 250,907 249,177 250,978 248,111 247,484 250,978 1 1 1 1 1 1 0 1 2 3 4 5 W 9 M M M 1 1 6 i o o o t d d r r r h e a e e a i n y y t t t s s h h h 1 a a a t t 5 o o n n n d 9 5 1 1 1 a 0 0 y y y y d e s e e y ' a a a a e r r y r a s s r t s o t o 5 1 y 0 e y ar e s a rs 7 6 5 2 1 1 7 2 9 4 5 2 , , , , , , 3 4 0 6 7 5 8 3 1 1 1 8 6 1 3 3 6 4 6 5 8 2 1 1 2 0 4 8 8 2 , , , , , , 4 5 7 3 0 5 1 6 1 4 5 8 3 6 6 6 8 4 6 5 8 2 1 1 2 5 4 1 3 2 , , , , , , 7 3 7 2 9 8 3 8 6 1 7 3 1 4 6 6 9 2 5 8 6 2 1 1 4 2 4 1 1 2 , , , , , , 9 7 7 9 9 8 8 9 3 1 1 3 2 7 1 6 9 2 5 8 6 2 1 1 4 2 1 4 5 2 , , , , , , 2 0 4 7 7 8 3 4 2 1 2 3 8 0 6 6 6 2 6 7 6 2 1 5 6 6 2 4 2 , , , , , , 5 5 2 4 7 5 6 0 9 5 1 8 2 4 3 3 6 4 6 7 6 2 1 8 2 6 2 4 2 , , , , , , 1 8 7 4 7 5 0 9 2 5 1 8 7 8 7 3 6 4 5 8 6 2 1 1 4 2 1 4 5 2 , , , , , , 2 0 4 7 7 8 3 4 2 1 2 3 8 0 6 6 6 2 2 2 2 1 1 1 1 1 2 0 6 7 8 9 Fe M M 9 M W 1 d 1 6 e o o o i r t d d r r r a h e e e a a l i y y n t a t t s s h h h g 1 a a a e t t 5 n n n o o n c d 9 5 1 1 1 y a 0 0 y y y y o d e y e s e b 1 a a a a e l r r y r a i s s g r t s o a t o ti 5 o 1 n y 0 s e — y ar e s T a o rs t al 6 2 1 1 1 , , , , , 6 4 4 4 0 0 1 8 9 3 6 9 1 8 9 1 3 8 9 0 7 6 2 1 , , , 6 5 9 4 5 9 1 3 2 4 6 2 8 8 7 3 5 9 3 9 8 6 2 1 , , , 3 5 9 3 3 9 1 6 2 4 6 5 8 8 3 3 2 2 9 9 8 6 2 1 , , , 1 4 9 9 3 1 1 5 5 9 7 8 5 8 9 8 7 3 9 4 8 6 2 1 , , , 1 4 9 9 3 1 1 8 5 8 7 5 7 8 7 9 4 4 6 0 8 6 2 1 1 , , , , 2 4 3 7 5 0 1 1 5 0 0 4 1 8 3 8 2 7 8 0 8 2 6 1 1 , , , , 4 2 8 4 0 2 1 9 1 8 2 1 0 8 9 3 8 3 0 5 8 2 6 1 , , , 4 1 9 9 3 1 1 8 5 7 8 5 8 7 7 9 4 4 6 8 0 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 • October 1991 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1990 1991 1987 1988 1989 1990 IItteemm Dec. Dec. Dec. Dec. Dec. Jan. Feb. Mar. Apr. May June July Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves3 45.81 47.60 47.73 49.10 49.10 49.47 49.61 49.57 49.39 50.07 50.43 50.51 2 Nonborrowed reserves4 45.03 45.88 47.46 48.78 48.78 48.93 49.36 49.32 49.16 49.77 50.09 49.91 3 Nonborrowed reserves plus extended credit 45.52 47.12 47.48 48.80 48.80 48.96 49.39 49.38 49.25 49.85 50.10 49.95 4 Required reserves 44.77 46.55 46.81 47.44 47.44 47.30 47.80 48.39 48.36 49.04 49.42 49.60 5 Monetary base6 246.28 263.46 274.17 299.79 299.79 305.15 309.44 310.98 310.60 311.48 312.47 313.91 ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 Not seasonally adjusted 6 Total reserves7 47.04 49.00 49.18 50.58 50.58 50.76 48.55 48.59 50.30 49.06 50.41 50.66 7 Nonborrowed reserves 46.26 47.29 48.91 50.25 , 50.25 50.22 48.30 48.34 50.07 48.76 50.07 50.06 8 Nonborrowed reserves plus extended credit5 46.75 48.53 48.93 50.28 50.28 50.25 48.33 48.40 50.16 48.85 50.07r 50.10 9 Required reserves 46.00 47.96 48.26 48.91 48.91 48.59 46.74 47.41 49.27 48.03 49.40 49.75 10 Monetary base9 249.93 267.46 278.30 304.04 304.04 306.03 305.74 308.19 310.86 311.02 314.06 316.21 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS10 11 Total reserves11 62.14 63.75 62.81 59.12 59.12 50.99 48.55 48.59 50.30 49.06 50.41 50.66 12 Nonborrowed reserves 61.36 62.03 62.54 58.79 58.79 50.46 48.30 48.35 50.07 48.76 50.07 50.06 13 Nonborrowed reserves plus extended credit5 61.85 63.27 62.56 58.82 58.82 50.48 48.33 48.40 50.16 48.85 50.08 50.10 14 Required reserves 61.09 62.70 61.89 57.46 57.46 48.82 46.74 47.41 49.27 48.03 49.40 49.75 15 Monetary base12 . 266.06 283.00 292.55 313.70 313.70 309.30 308.53 311.04 313.95 314.25 317.25r 319.46 16 Excess reserves 1.05 1.05 .92 1.66 1.66 2.17 1.81 1.18 1.03 1.03 1.01 .91 17 Borrowings from the Federal Reserve .78 1.72 .27 .33 .33 .53 .25 .24 .23 .30 .34 .61 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 (for all quarterly reporters on the "Report of Transaction Accounts, Other adjusted, 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 1987 1988 1989 1990 Dec. Dec. Dec. Dec. Apr/ May' June' July Seasonally adjusted 1 Ml 749.7 786.4 793.6 825.4 842.1 851.6 858.4 859.7 2 M2 2,910.1 3,069.9 3.223.1 3.327.6 3.382.7 3.394.6 3.398.6 3,388.0 3 M3 3,677.4 3,919.1 4.055.2 4.111.7 4.170.8 4.172.7 4.165.7 4,149.7 4 L 4.337.0 4,676.0 4,889.9 4,965.7r 4,971.8 4,947.6 4,977.6 n.a. 5 Debt 8.345.1 9,107.6 9,790.4 10,436.1 10,576.2 10,621.6 10,671.6 n.a. Ml components 6 Currency3 196.8 212.0 222.2 246.4 256.6 256.8 257.6 258.9 7 Travelers checks 7.0 7.5 7.4 8.4 7.9 8.0 7.8 7.7 8 Demand deposits 286.5 286.3 278.7 276.9 275.8 278.7 281.0 278.9 9 Other checkable deposits 259.3 280.7 285.2 293.8 301.9 308.1 312.0 314.2 Nontrqnsaction components 1 1 0 1 I I n n M M 2 3 o . n .. ly ,o8 . 2,1 7 6 6 0 7 . . 4 3 2,2 8 8 4 3 9 . . 5 3 2,4 8 2 3 9 2 . . 5 1 2,5 7 0 8 2 4 . . 2 1 2,5 7 4 8 0 8 . . 5 1 2,5 7 4 7 2 8. . 2 9 2,5 7 4 6 0 7 . . 2 1 2,5 7 2 61 8 . . 7 3 Time and savings accounts Commercial banks 12 Savings deposits 178.3 192.1 187.7 199.4 208.9 211.4 215.1 217.6 13 Money market deposit accounts . 356.4 350.2 353.0 378.4 393.8 399.9 404.5 408.0 14 Small time deposits' .. 388.0 447.5 531.4 598.1 604.1 601.2 601.7 601.0 15 Large time deposits10- 11 326.6 368.0 401.9 386.1 398.5 399.3 398.1 394.1 Thrift institutions 16 Savings deposits 233.7 232.3 216.4 211.4 218.4 221.7 223.8 225.3 17 Money market deposit accounts . 168.5 151.2 133.1 127.6 132.8 136.2 137.6 139.2 18 Small time deposits'. 529.7 584.3 614.5 566.1 546.1 539.3 527.4 517.7 19 Large time deposits 162.6 174.3 161.6 121.0 108.8 104.6 100.9 97.7 Money market mutual funds 20 General purpose and broker-dealer. 221.7 241.1 313.6 345.4 364.2 365.1 364.3 359.4 21 Institution-only 88.9 86.9 101.9 125.7 145.6 146.2 143.3 141.8 Debt components 22 Federal debt 1,957.9 2,114.2 2,268.1 2,534.3 2,590.8 2,613.1 2,645.5 n.a. 23 Nonfederal debt 6,387.2 6,993.4 7,522.3 7,901.8 7,985.4 8,008.5 8,026.1 n.a. Not seasonally adjusted 24 Ml 766.2 804.2 811.9 844.3 852.8 841.6 857.7 862.0 25 M2 2.923.0 3,083.3 3,236.6 3,341.6 3,396.2 3,374.0 3,391.6 3,391.3 26 M3 3,690.3 3,931.5 4,067.0 4,123.8 4,179.9 4,154.0 4,160.2 4,152.6 27 L 4,352.8 4,691.8 4,907.4 4,984.3r 4,983.1 4,932.6 4,968.2 n.a. 28 Debt 8.329.1 9,093.2 9,775.9 10,423.3 10,531.6 10,576.7 10,628.8 n.a. Ml components 29 Currency3 199.3 214.8 225.3 249.6 256.0 257.4 259.1 260.9 30 Travelers checks4 6.5 6.9 6.9 7.8 7.5 7.8 8.1 8.5 31 Demand deposits 298.6 298.9 291.5 289.9 277.6 271.5 279.6 280.6 32 Other checkable deposits6 261.8 283.5 288.2 297.0 311.7 304.9 310.8 312.0 Nontrqnsaction components 33 In M2 2,156.8 2,279.1 2,424.7 2,497.3 2,543.4 2,532.5 2,533.9 2,529.4 34 In M3 only8 767.3 848.2 830.4 782.2 783.7 779.9 768.7 761.3 Time and savings accounts Commercial banks 35 Savings deposits 176.8 190.6 186.4 197.7 209.5 211.9 216.5 219.8 36 Money market deposit accounts 359.0 353.2 356.5 381.6 394.0 395.8 401.9 404.7 37 Small time deposits®. 387.2 446.0 529.2 596.1 604.2 601.0 602.1 602.9 38 Large time deposits10' 11 325.8 366.8 400.4 386.1 396.3 398.9 397.7 392.9 Thrift institutions 39 Savings deposits 231.4 229.9 214.2 209.6 219.0 222.2 225.2 227.6 40 Money market deposit accounts 168.6 151.6 133.7 128.7 132.9 134.9 136.7 138.0 41 Small time deposits'. 529.5 583.8 613.8 564.1 546.2 539.1 527.7 519.3 42 Large time deposits 163.3 175.2 162.6 121.1 108.2 104.5 100.8 97.4 Money market mutual funds 43 General purpose and broker-dealer 221.1 240.7 313.5 345.5 368.5 360.5 358.0 354.5 44 Institution-only 89.6 87.6 102.8 127.0 144.1 145.2 141.0 139.7 Repurchase agreements and eurodollars 45 Overnight 83.2 83.4 77.3 74.0 69.1 67.1 65.8 62.6 46 Term 197.1 227.7 179.8 161.5 150.3 146.7 144.2 146.4 Debt components 47 Federal debt 1,955.6 2,111.8 2,265.9 2.532.1 2,593.0 2,609.1 2.635.3 n.a. 48 Nonfederal debt 6,373.5 6,981.4 7,509.9 7.891.2 7,938.6 7,967.6 7.993.4 n.a. For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Nonfinancial Statistics • October 1991 NOTES TO TABLE 1.21 1. Latest monthly and weekly figures are available from the Board's H.6 (508) Debt: Debt of domestic nonfinancial sectors consists of outstanding credit release. Historical data are available from the Money and Reserves Projection market debt of the U.S. government, state and local governments, and private Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve nonfinancial sectors. Private debt consists of corporate bonds, mortgages, con- System, Washington, D.C. 20551. sumer credit (including bank loans), other bank loans, commercial paper, bankers 2. Composition of the money stock measures and debt is as follows: acceptances, and other debt instruments. Data are derived from the Federal Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults Reserve Board's flow of funds accounts. Debt data are based on monthly of depository institutions; (2) travelers checks of nonbank issuers; (3) demand averages. deposits at all commercial banks other than those due to depository institutions, 3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of the U.S. government, and foreign banks and official institutions less cash items in depository institutions. the process of collection and Federal Reserve float; and (4), other checkable 4. Outstanding amount of U.S. dollar-denominated travelers checks of nondeposits (OCDs) 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 2 1991 BBaannkk ggrroouupp,, oorr ttyyppee ooff ccuussttoommeerr 11998888 22 11998899 22 11999900 22 Dec. Jan. Feb. Mar.r Apr/ May DEBITS TO Seasonally adjusted Demand deposits 1 All insured banks 219,795.7 256,150.4 277,916.3 267,479.9 279,437.8 280,494.1 269,834.9 294,433.5 295,559.0 2 Major New York City banks 115,475.6 129,319.9 131,784.0 130,154.6 138,638.1 138,037.7 133,302.7 146,499.3 148,074.9 3 Other banks 104,320.2 126,830.5 146,132.3 137,325.3 140,799.7 142,456.4 136,532.2 147,934.2 147,484.1 4 ATS-NOW accounts4 2,478.1 2,910.5 3,349.6 3,368.4 3,559.1 3,533.7 3,240.3 3,820.3 3,620.2 5 Savings deposits 537.0 547.5 558.8 527.2 572.9 551.4 523.7 577.1 548.6 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 622.9 735.1 800.6 779.5 828.3 817.8 792.0 870.3 867.0 7 Major New York City banks 2,897.2 3,421.5 3,804.1 3,949.1 4,259.7 4,125.7 4,101.4 4,533.4 4,702.8 8 Other banks 333.3 408.3 467.7 442.7 461.9 460.2 443.0 483.4 476.6 9 ATS-NOW accounts4 13.2 15.2 16.5 16.2 17.0 16.7 15.1 17.8 16.4 10 Savings deposits5 2.9 3.0 2.9 2.7 2.9 2.7 2.6 2.8 2.6 DEBITS TO Not seasonally adjusted Demand deposits 11 All insured banks 219,790.4 256,133.2 277,400.0 275,664.8 283,545.5 259,372.9 275,015.8 294,492.4 292,012.3 12 Major New York City banks 115,460.7 129,400.1 131,784.7 133,491.9 136,578.8 127,287.3 134,974.7 145,700.2 145,073.9 13 Other banks 104,329.7 126,733.0 145,615.3 142,172.9 146,966.7 132,085.5 140,041.0 148,792.2 146,938.4 14 ATS-NOW accounts4 2,477.3 2,910.7 3,342.2 3,430.2 3,923.1 3,237.8 3,317.4 3,967.1 3,549.9 15 MMDA6 2,342.7 2,677.1 2,923.8 2,938.6 3,106.8 2,512.7 2,767.2 2,994.5 2,978.6 16 Savings deposits5 536.3 546.9 557.9 530.1 589.2 494.9 520.4 623.9 545.5 DEPOSIT TURNOVER Demand deposits3 17 All insured banks 622.8 735.4 799.6 765.8 820.3 778.7 831.9 864.8 875.5 18 Major New York City banks 2,896.7 3,426.2 3,810.0 3,760.0 3,993.4 3,899.0 4,378.4 4,565.4 4,742.5 19 Other banks 333.2 408.0 466.3 438.2 471.9 439.7 467.2 482.1 485.0 20 ATS-NOW accounts4 13.2 15.2 16.4 16.2 18.4 15.3 15.4 17.8 16.3 21 MMDAs6 6.6 7.9 8.0 7.8 8.2 6.6 7.1 7.7 7.6 22 Savings deposits 2.9 2.9 2.9 2.7 3.0 2.5 2.5 3.0 2.6 1. Historical tables containing revised data for earlier periods may be obtained 3. Represents accounts of individuals, partnerships, and corporations and of from the Banking and Money Market Statistics Section, Division of Monetary states and political subdivisions. Affairs, Board of Governors of the Federal Reserve System, Washington, D.C. 4. Accounts authorized for negotiable orders of withdrawal (NOW) and ac- 20551. counts authorized for automatic transfer to demand deposits (ATS). 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics • October 1991 1.23 LOANS AND SECURITIES All Commercial Banks Billions of dollars; averages of Wednesday figures 1990 1991 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Seasonally adjusted 1 Total loans and securities1 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 2,758.1 2,758.7 2 U.S. government securities 445.7 450.1 453.1 454.0 454.2 454.1 458.0 471.4 479.2 484.9 492.9 502.9 3 Other securities 178.8 178.8 177.8 175.9 175.6 177.7 177.6 177.6 175.7 173.9 173.1 172.2 4 Total loans and leases 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 2,092.1 2,083.6 5 Commercial and industrial ..... 645.1 644.7 643.7 646.5 648.1 644.3 643.9 646.0 640.0 633.2 629.7 626.3 6 Bankers acceptances held2... 7.4 7.5 7.3 7.4 7.5 7.7 6.9 6.7 6.7 6.8 6.5 6.6 7 Other commercial and industrial 637.7 637.1 636.4 639.1 640.5 636.6 637.1 639.4 633.3 626.4 623.2 619.7 8 U.S. addressees 633.4 632.6 631.7 634.0 635.3 631.1 631.5 633.7 627.8 620.6 617.3 614.0 9 Non-U.S. addressees 4.3 4.5 4.7 5.1 5.3 5.5 5.5 5.7 5.5 5.8 5.9 5.7 10 Real estate 818.0 822.5 827.7 832.0 836.5 837.3 842.6 846.3 850.7 854.7 857.7 854.9 11 Individual 378.2 378.6 379.7 378.7 378.9 375.9 377.7 375.5 374.1 373.4 371.7 369.4 12 Security 44.6 41.3 40.5 39.6 40.6 43.1 43.2 38.8 39.8 39.8 38.3 41.7 13 Nonbank financial institutions 35.0 35.2 34.8 34.6 34.7 34.2 35.3 36.1 35.2 36.1 36.2 35.9 14 Agricultural 31.5 31.8 32.2 32.5 33.0 33.5 33.5 34.0 33.9 33.6 33.0 32.5 IS State and political subdivisions 35.8 35.2 35.1 34.8 34.3 33.2 33.1 32.7' 32. 1' 31.7' 31.0 30.6 16 Foreign banks 7.9 8.1 9.0 8.1 7.2 6.0 6.1 7.2 6.8' 6.4 6.0 6.2 17 Foreign official institutions 3.2 3.3 3.2 3.2 3.2 3.0 3.1 3.2 3.0 3.0 3.0 3.1 18 Lease financing receivables .... 32.7 32.8 33.3 32.9 32.7 32.4 32.8 33.0 32.7 32.7 32.8 32.0 19 All other loans 48.2 45.5 43.6 43.7 44.7 46.4 48.2 49.1 48.3' 46.5r 52.7 50.9 Not seasonally adjusted 20 Total loans and securities1 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 2,758.8 2,752.5 21 U.S. government securities 444.0 448.2 450.8 454.1 451.5 455.8 463.9 475.8 480.5 485.1 491.5 499.4 22 Other securities 179.1 179.0 178.0 176.6 176.3 177.9 177.3 176.9 175.1 173.8 173.2 171.5 23 Total loans and leases1 2,077.1 2,079.8 2,086.7 2,089.3 2,102.7 2,087.3 2,0%. 1 2,095.7 2,095.7 2,090.3 2,094.1 2,081.7 24 Commercial and industrial ..... 643.5 640.9 641.2 644.5 648.0 641.1 643.0 648.3 644.7 637.1 632.0 626.6 2S Bankers acceptances held ... 7.2 7.5 7.4 7.6 7.7 7.6 7.0 6.6 6.6 6.7 6.6 6.3 26 Other commercial and industrial 636.3 633.4 633.8 636.9 640.3 633.4 636.1 641.6 638.1 630.4 625.4 620.3 27 U.S. addressees 631.8 628.8 629.1 631.9 635.1 628.2 630.6 636.2 632.2 624.5 619.4 614.5 28 Non-U.S. addressees 4.5 4.6 4.7 5.0 5.2 5.3 5.5 5.4 5.9 5.9 6.0 5.8 29 Real estate 819.9 824.2 830.3 834.0 837.9 837.1 839.5 842.6 848.1 853.8 857.7 855.5 30 Individual 377.4 380.4 380.6 379.8 383.8 380.1 377.1 372.8 371.5 371.8 369.7 367.2 31 Security 43.9 40.3 39.5 38.5 40.0 40.9 44.7 40.1 41.3 39.0 40.5 41.5 32 Nonbank financial institutions 35.0 34.9 34.7 35.0 36.1 34.7 34.9 35.4 34.8 35.7 36.3' 35.7 33 Agricultural 32.5 32.9 33.1 32.9 32.9 32.8 32.6 32.6 32.8 33.1 33.3 33.4 34 State and political subdivisions 35.7 35.2 35.1 34.7 34.0 33.9 33.3 32.7' 32.1 31.7 31.0 30.4 35 Foreign banks 8.0 8.2 9.3 8.3 7.4 6.0 6.0 6.8 6.7 6.3 6.1 6.2 36 Foreign official institutions 3.2 3.3 3.2 3.2 3.2 3.0 3.1 3.2 3.0 3.0 3.0 3.1 37 Lease financing receivables .... 32.6 32.8 33.3 33.1 32.8 32.8 32.9 32.9 32.7 32.6 32.6 31.8 38 All other loans 45.4 46.8 46.3 45.4 46.7 44.7 48.9 48.3r 48.c 46.2' si^ 50.4 1. Adjusted to exclude loans to commercial banks in the United States. 3. United States includes the fifty 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 Billions of dollars, monthly averages Source Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.' May' June July Seasonally adjusted 1 Total nondeposit funds2 — 283.8 283.0 291.8 292.4 287.9 277.2' 265.1 264.2' 263.3 259.7 249.5' 249.5 2 Net balances due to related foreign offices3 19.0 21.5 29.9 30.1 34.6 33.5 24.9 30.2 30.9 26.1 19.2 19.3 3 Borrowings from other than commercial banks in United States4 264.8 261.5 261.9 262.2 253.3r 243.6 240.2 234.0' 232.4 233.6 230.3' 230.3 4 Domestically chartered banks 202.2 198.8 196.9 195.0 187.1 182.2 177.1 171.5 170.6 168.8 166.3 165.0 5 Foreign-related banks 62.6 62.7 65.0 67.3 66.2 61.5 63.1 62.6r 61.8 64.8 64.C 65.3 Not seasonally adjusted 6 Total nondeposit funds2 — 282.5 278.6 288.7 293.5 282.3 272.5 268.1 269.5' 264.0 267.7 252.5' 246.3 7 Net balances due to related foreign offices3 18.5 21.6r 29.6 30.8 37.2 33. r 24.8 29.7 29.0 28.6 19.5 16.9 8 Domestically chartered banks -3.4 -4.2 -1.0 .6 -4.1 -15.2 -15.2 -6.0 -3.5 -.7 -3.5 -7.2 9 Foreign-related banks 21.9 25.8 30.6 30.2 41.3 48.4 40.0 35.6 32.5 29.3 23.0 24.1 10 Borrowings from other than commercial banks in United States4 264.0 257.0 259.2 262.7 245.2r 239.4 243.3 239.8' 235.0 239.1 233.0' 229.5 11 Domestically chartered banks 201.7 195.6 195.0 197.6 182.8 177.7 179.4 175.8 171.4 173.5 167.2 162.9 12 Federal funds and security RP borrowings 198.1 191.6 191.7 194.7 180.0 174.4 176.6 172.6 168.5 170.7 164.3 159.7 13 Other6 . 3.6 4.0 3.2 2.9 2.8 3.2 2.8 3.2 2.9 2.8 2.8 3.2 14 Foreign-related banks6 62.3 61.5 64.2 65.1 62.3 61.7 63.9 64.C 63.6 65.6 65.8' 66.5 MEMO Gross large time deposits 15 Seasonally adjusted 449.2 443.6 438.0 435.2 431.8 441.0 450.6 451.0' 451.3 453.0 451.9' 447.5 16 Not seasonally adjusted 450.1 445.4 440.4 437.8 431.8 439.3 449.2 450.5 449.0 452.6 451.4' 446.3 U.S. Treasury demand balances at commercial banks* 17 Seasonally adjusted 32.7 26.0 22.3 25.2 24.4 25.7 33.4 33.8 21.7 15.1 23.2 20.4 18 Not seasonally adjusted 23.5 31.0 20.9 19.2 23.0 29.4 39.3 28.4 20.4 19.8 23.6 20.7 1. Commercial banks are those in the fifty states and the District of Columbia promissory note or due bill, given for the purpose of borrowing money for the with national or state charters plus agencies and branches of foreign banks, New banking business. This includes borrowings from Federal Reserve Banks and York investment companies majority owned by foreign banks, and Edge Act from foreign banks, term federal funds, loan RPs, and sales of participations in corporations owned by domestically chartered and foreign banks. pooled loans. These data also appear in the Board's G.10 (411) release. For address, see 5. Based on daily average data reported weekly by approximately 120 large inside front cover. banks and quarterly or annual data reported by other banks. 2. Includes federal funds, repurchase agreements (RPs), and other borrowing 6. Figures are partly daily averages and partly averages of Wednesday data. from nonbanks and net balances due to related foreign offices. 7. Time deposits in denominations of $100,000 or more. Estimated averages of 3. Reflects net positions of U.S. chartered banks, Edge Act corporations, and daily data. U.S. branches and agencies of foreign banks with related foreign offices plus net 8. U.S. Treasury demand deposits and Treasury tax-and-loan notes at compositions with own IBFs. mercial banks. Averages of daily data. 4. Other borrowings are borrowings through any instrument, such as a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • October 1991 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series1 Billions of dollars 1990 1991 AAccccoouunntt Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July ALL COMMERCIAL BANKING INSTITUTIONS2 1 Loans and securities 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 2,931.3 2,934.0 2 Investment securities 601.7 604.9 603.3 605.6 612.8 614.0 628.3 628.5 634.1 638.6 646.9 3 U.S. government securities 434.5 438.0 437.6 439.6 447.6 449.5 463.3 465.1 471.8 477.8 487.3 4 Other 167.2 166.8 165.7 166.0 165.2 164.5 165.1 163.4 162.2 160.7 159.6 5 Trading account assets 21.4 27.4 25.0 22.0 24.1 26.9 23.5 24.9 24.3 27.5 30.0 6 Total loans 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 2,265.3 2,257.1 7 Interbank loans 191.0 207.9 207.0 204.0 193.3 185.0 171.8 160.7 172.5 166.8 175.3 8 Loans excluding interbank 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 2,098.5 2,081.8 9 Commercial and industrial 639.7 643.4 644.4 650.8 637.2 645.1 648.5 643.6 635.1 631.7 624.8 10 Real estate 825.0 831.5 833.7 838.3 836.9 840.1 842.5 849.0 855.2 857.5 853.5 11 Individual 381.2 380.8 380.5 384.7 378.6 376.4 371.5 372.0 370.7 369.5 368.1 12 All other 227.1 235.5 231.2 231.5 225.9 237.4 224.8 228.3 229.6 239.8 235.3 13 Total cash assets 213.7 220.8 216.7 217.9 199.2 204.5 206.1 201.0 224.3 212.3 216.0 14 Reserves with Federal Reserve Banks. 33.6 29.7 33.0 23.4 16.5 18.1 25.0 23.1 26.2 29.1 24.8 15 Cash in vault 29.3 29.4 32.8 32.0 30.4 29.8 28.9 29.1 31.1 29.8 29.7 16 Cash items in process of collection ... 81.1 85.4 78.4 86.0 74.7 79.9 76.9 74.3 87.2 78.3 87.8 17 Demand balances at U.S. depository institutions 27.0 28.5 28.4 29.6 28.1 27.7 27.6 26.4 30.8 28.3 28.6 18 Other cash assets 42.8 47.8 44.2 46.8 49.6 49.0 47.7 48.1 49.0 46.8 45.2 19 Other assets 226.6 230.1 226.6 245.1 249.9 259.6 263.1 260.4 264.4 265.6 285.4 20 Total assets/total liabilities and capital.... 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 3,409.2 3,435.4 21 Deposits 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 2,406.1 2,448.0 22 Transaction deposits 595.3 612.1 598.1 637.1 587.9 594.1 602.8 601.3 617.6 611.2 639.4 23 Savings deposits 563.5 570.5 573.1 573.3 573.9 583.5 594.1 595.4 606.2 610.7 619.9 24 Time deposits 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 1,184.2 1,188.8 25 Borrowings 570.9 591.0 570.6 548.7 529.8 515.4 492.3 494.6 499.8 510.4 500.7 26 Other liabilities 233.1 236.0 255.3 264.4 268.8 282.3 278.2 263.9 267.6 263.8 256.6 27 Residual (assets less liabilities) 223.4 223.3 222.7 223.5 224.6 226.2 227.0 228.1 229.6 228.9 230.0 MEMO 28 U.S. government securities (including trading account) 445.1 454.2 451.9 451.1 459.4 463.7 475.9 479.0 485.0 492.9 505.1 29 Other securities (including trading account) 178.0 178.1 176.4 176.5 177.5 177.2 176.0 174.5 173.4 173.1 171.9 DOMESTICALLY CHARTERED COMMERCIAL BANKS3 30 Loans and securities 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 2,640.8 2,647.7 31 Investment securities 569.0 571.5 569.8 570.5 575.3 577.4 588.6 592.3 595.7 600.5 609.1 32 U.S. government securities 417.9 420.9 420.8 421.7 426.5 429.3 440.2 445.5 449.2 455.5 465.4 33 Other 151.2 150.6 149.1 148.8 148.7 148.2 148.5 146.8 146.5 144.9 143.8 34 Trading account assets 21.4 27.4 25.0 22.0 24.1 26.9 23.5 24.9 24.3 27.5 30.0 35 Total loans 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 2,012.9 2,008.6 36 Interbank loans 146.0 164.0 157.4 160.0 151.7 150.9 148.3 134.2 144.5 139.0 149.9 37 Loans excluding interbank 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 1,873.9 1,858.7 38 Commercial and industrial 513.2 515.4 513.4 512.7 504.2 508.4 506.3 502.4 495.0 490.5 482.2 39 Real estate 784.0 789.8 791.6 796.4 794.0 797.1 799.7 804.7 808.7 810.3 805.7 40 Individual 381.2 380.8 380.5 384.7 378.6 376.4 371.5 372.0 370.7 369.5 368.1 41 All other 205.7 209.5 207.4 207.9 200.2 205.1 197.7 198.4 198.8 203.6 202.6 42 Total cash assets 187.0 189.3 187.7 188.3 166.6 172.7 177.0 171.6 193.6 184.3 189.4 43 Reserves with Federal Reserve Banks. 32.1 28.5 31.5 23.0 15.3 17.0 24.0 21.9 25.8 28.3 23.9 44 Cash in vault 29.2 29.4 32.8 32.0 30.3 29.8 28.8 29.1 31.1 29.8 29.7 45 Cash items in process of collection ... 79.0 83.6 76.4 83.9 72.9 78.2 74.9 72.6 85.5 76.2 86.1 46 Demand balances at U.S. depository institutions 25.1 26.6 26.2 27.6 26.2 25.8 25.8 24.8 28.8 26.5 26.8 47 Other cash assets 21.5 21.2 20.9 21.8 22.0 21.9 23.4 23.2 22.4 23.6 23.1 48 Other assets 152.3 153.6 155.0 167.8 166.9 171.3 167.9 161.9 162.3 164.3 168.8 49 Total assets/liabilities and capital 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 2,989.4 3,006.0 50 Deposits 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 2,271.3 2,308.6 51 Transaction deposits 584.4 601.5 587.7 626.1 577.4 583.8 592.2 591.4 607.5 600.9 629.3 52 Savings deposits 560.4 567.4 569.8 570.0 570.6 580.2 590.6 591.9 602.5 607.1 616.2 53 Time deposits 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 1,063.4 1,063.1 54 Borrowings 395.8 400.4 394.1 375.6 380.1 371.8 354.9 346.5 355.1 364.4 349.3 55 Other liabilities 124.1 127.5 131.5 131.4 124.2 136.8 136.0 132.6 131.9 128.4 121.6 56 Residual (assets less liabilities) 219.7 219.6 219.0 219.8 220.9 222.6 223.4 224.5 226.0 225.3 226.4 MEMO 57 Real estate loans, revolving 58.6 60.6 61.1 61.7 62.9 63.3 63.6 64.4 65.7 66.6 66.9 58 Real estate loans, other 725.4 729.2 730.5 734.7 731.1 733.8 736.1 740.3 743.0 743.7 738.8 1. Back data are available from the Banking and Monetary Statistics Section, the last Wednesday of the month based on a weekly reporting sample of Board of Governors of the Federal Reserve System, Washington, D.C., 20551. foreign-related institutions and 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 1991 June 5 June 12 June 19 June 26 July 3 July 10 July 17 July 24 July 31 ASSETS 2 1 U Ca .S sh . T a r n e d a s b u a r l y a n a c n e d s g d o u v e e f r r n o m m e n d t e p s o e s c i u t r o i r t y ie s i nstitutions . 1 19 0 7 3 , , 3 0 3 8 6 9 ' ' 110%0,,691570' 1 19 0 5 1 , , 6 0 9 4 5 4 ' 1 1 0 95 8 , , 1 0 9 3 0 3 ' 1 1 0 % 7 , , 4 6 9 7 9 9 1 1 0 9 1 5 , , 4 4 0 8 6 0 1 9 9 8 7 , , 0 6 1 9 0 4 1 9 9 4 7 , , 8 1 0 5 9 6 3 Trading account 16,006 15,967 16,225 15,120 16,249 15,573 16,642 14,917 4 Investment account 181,331' 180,643 179,470 180,071 180,250 179,907 181,052 182,239 5 Mortgage-backed securities1 81,597' 79,752' 78,402 78,155' 78,799 78,427 77,192 77,191 All other maturing in 6 One year or less 20,4% 20,820 20,548 21,141' 22,071 22,207 22,377 22,685 7 Over one through five years 45,385 44,974 45,457 45,648' 43,178 42,940 44,794 45,597 8 Over five years 33,853' 35,096' 35,063 35,127 36,202 36,333 36.688 36.766 9 Other securities 57,984 57,946 58,098 58,091 57,354 57.124 56,917 56,710 10 Trading account 1,825 1,939 2,065 2,287 1,903 1,845 1,836 1,714 11 Investment account 56,159 56,008 56,033 55,805 55,451 55,279 55,081 54,996 12 State and political subdivisions, by maturity ... 26,921 26,883 26,880 26,738 25,913 25,839 25,737 25,674 13 One year or less 3,658 3,654 3,677 3,589 3,153 3,133 3,088 3,098 14 Over one year 23,263 23,229 23,204 23,149 22,760 22,706 22,649 22,576 15 Other bonds, corporate stocks, and securities .. 29,238 29,125 29,152 29,067 29,538 29,440 29,344 29,322 16 Other trading account assets 9,988 10,020 10,145 10,041 10,051 10,495 10,332 10,737 17 Federal funds sold2 76,258 75,106 77,433 76,235 82,121 79,970 76,223 73,885 18 To commercial banks in the U.S 54,193 52,232 53,995 51,704 56,524 54,953 52,250 49,677 19 To nonbank brokers and dealers 19,212 20,063 20,043 21,142 21,256 21,1% 19,793 19,632 20 To others3 2,853 2,811 3,395 3,390 4,341 3,822 4,180 4,576 21 Other loans and leases, gross 1,040,390' 1,035,825' 1,037,268' 1,034,724' 1,030,888 1,025,629 1,019,170 1,016,182 22 Commercial and industrial 311,936' 309,443' 310,027' 308,232' 308,939 306,236 304,100 302,507 23 Bankers' acceptances and commercial paper 1,723 1,691 1,749 1,578 1,579 1,620 1,634 1,766 24 All other 310,213' 307,752' 308,278' 306,655' 307,360 304,617 302,466 300,740 25 U.S. addressees 308,753' 306,3%' 306,759' 305,171' 305,917 303,199 301,061 299,333 26 Non-U.S. addressees 1,459 1,356 1,519 1,484 1,442 1,418 1,405 1,407 27 Real estate loans 404,759' 405,395' 405,518' 404,024' 403,732 403,628 400,235 399,787 28 Revolving, home equity 37,712' 37,768' 38,19c 38,249' 37,978 38,059 38,156 38,105 29 All other 367,047' 367,627' 367,328' 365,775' 365,754 365,570 362,080 361,682 30 To individuals for personal expenditures 188,907' 187,862' 188,283' 187,588' 185,070 184,171 184,314 184,685 31 To depository and financial institutions 46,370' 44,883' 45,448' 44,479' 45,042 44,014 44,117 43,808 32 Commercial banks in the United States 21,030 19,779 20,658 19,814 19,536 18,702 19,315 20,340 33 Banks in foreign countries 2,215 2,077 2,001 1,980 2,367 2,352 2,577 1,798 34 Nonbank depository and other financial institutions 23,125' 23,027' 22,789' 22,685' 23,139 22,960 22,225 21,670 35 For purchasing and carrying securities 11,811 11,527 11,795 13,942' 11,829 12.125 11,586 11,462 36 To finance agricultural production 6,198 6,216 6,208 6,215 6,290 6,292 6,324 6,261 37 To states and political subdivisions 19,346 19,332 19,273 19,199 18,996 18,944 18,911 18,829 38 To foreign governments and official institutions .. 1,152 1,134 1,134 1,205 1,260 1,097 1,107 1,063 39 All other loans4 22,898' 23,10C 22,675' 22,986' 22,745 22,240 22,714 22,060 40 Lease financing receivables 27,014' 26,933' 26,908' 26,853' 26,985 26,881 25,762 25,720 41 LESS: Unearned income 3,%5' 3,%2' 3,961' 3,948' 3,861 3,869 3,877 3,864 42 Loan and lease reserve3 37,546 37,629 37,544 37,136 36,315 36,647 36.689 36.767 43 Other loans and leases, net 998,879' 994,234' 995,763' 993,640' 990,712 985,113 978,605 975,551 44 Other assets 153,934' 154,103' 152,071' 154,592' 158,758 153,862 149,931 150,733 45 Total assets 1,597,468' 1,588,976' 1,590,248' 1,595,823' 1,603,175 1,583,450 1,567,712 1,559,582 Footnotes appear on the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • October 1991 1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS—Continued Millions of dollars, Wednesday figures 1991 AAccccoouunntt June 5 June 12 June 19 June 26 July 3 July 10 July 17 July 24 July 31 LIABILITIES 46 Deposits 1,115,568R 1,111,353' 1,100,842' 1,095,097' 1,125,756 1,106,839 1,103,821 1,092,545 1,115,490 47 Demand deposits 225,274' 223,198' 220,575' 219,504' 238,785 221,191 221,313 211,602 233,796 48 Individuals, partnerships, and corporations 183,706' 181,519' 176,977' 175,594' 191,008 179,586 180,222 171,689 186,072 49 Other holders 41,568 41,680 43,597' 43,910 47,776 41,605 41,091 39,913 47,724 50 States and political subdivisions 6,372 6,284 7,378 7,132 6,929 6,123 7,017 6,626 7,368 51 U.S. government 1,795 1,975 3,514 1,655 2,362 1,614 1,337 1,712 3,195 5? Depository institutions in the United States 19,826 19,408 19,211' 19,573 22,583 19,540 19,081 18,021 21,474 53 Banks in foreign countries 4,498 4,535 4,473' 4,673 5,504 5,194 4,870 4,720 5,097 54 Foreign governments and official institutions 582 661 509 672 537 517 604 811 591 55 Certified and officers' checks 8,495 8,816 8,512 10,204 9,862 8,617 8,181 8,023 9,999 56 Transaction balances other than demand deposits .... 91,894 90,102 88,694' 87,272 92,746 90,643 89,784 88,428 90,438 57 Nontransaction balances 798,400' 798,053' 791,572' 788,321' 794,226 795,005 792,724 792,515 791,256 58 Individuals, partnerships, and corporations 760,878' 760,905' 755,061' 751,917' 758,994 759,808 757,516 757,134 755,860 59 Other holders 37,523' 37,148' 36,512' 36,404 35,232 35,197 35,209 35,382 35,396 60 States and political subdivisions 31,535' 31,256' 30,626' 30,626 28,870 28,766 28,845 29,028 29,043 61 U.S. government 1,138 1,153 1,167 1,160 1,177 1,188 1,191 1,194 1,112 62 Depository institutions in the United States 4,298' 4,191' 4,207 4,101 4,752 4,809 4,745 4,724 4,808 63 Foreign governments, official institutions, and banks .... 551' 547R 511 518 432 435 429 435 433 64 Liabilities for borrowed money5 265,370' 262,462' 275,203' 283,769' 265,217 264,676 255,245 256,622 268,461 65 Borrowings from Federal Reserve Banks 0 286 0 0 0 0 0 35 125 66 Treasury tax and loan notes 3,778R 5,012' 27,319' 27,654 12,330 10,736 10,331 14,125 25,758 67 Other liabilities for borrowed money 261,593' 257,165' 247,883' 256,115' 252,888 253,940 244,914 242,463 242,578 68 Other liabilities (including subordinated notes and debentures) 101,862' 100,021 99,861 102,807' 98,022 97,693 94,888 96,311 97,222 69 Total liabilities 1,482,800' 1,473,837' 1,475,905' 1,481,673' 1,488,996 1,469,208 1,453,954 1,445,478 1,481,173 70 Residual (Total assets minus total liabilities)7 114,667 115,140 114,343 114,150 114,179 114,242 113,758 114,104 114,061 MEMO 71 Total loans and leases, gross, adjusted, plus securities .. 1,306,734' 1,303,497' 1,303,986' 1,302,764' 1,300,854 1,295,043 1,288,772 1,284,654 1,295,183 72 Time deposits in amounts of $100,000 or more 196,031' 195,355' 192,654' 190,646' 189,858 189,247 189,230 188,918 187,902 73 Loans sold outright to affiliates, total 1,021 1,032 1,042 1,284 1,263 1,262 1,259 1,255 1,282 74 Commercial and industrial 540 538 546 644 668 641 645 643 658 75 Other 482 494 496 641 595 621 613 612 624 76 Foreign branch credit extended to U.S. residents 24,049 23,867 23,471 23,527 23,469 23,129 23,172 23,253 23,246 77 Net due to related institutions abroad -2,682 -3,697 -2,805' -2,529' -9,381 -5,645 -7,327 -5,139 -6,144 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 Account June 5 June 12 June 19 June 26 July 3 July 10 July 17 July 24 July 31 1 Cash and balances due from depository institutions 14,497 15,074 14,974 15,039 15,743 14,800 14,429 15,134 14,878 2 U.S. Treasury and government agency securities 14,210r 14,570 14,310 14,477 14,144 14,360 14,372 14,674 14,327 4 3 5 6 7 8 F O O e t t T T C d h h o e e o e o r r r m c a o s l o l t m o e h m f a c e e u n m u r r n s c r s e d i 2 i r t a a s i c l n e i s d a s a o . l n l l d 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 7 8 2 1 6 6 , , , , , , 2 8 3 9 5 4 0 4 1 4 2 2 7 5 7 5 8 2 1 8 1 3 7 4 2 6 0 6 , , , , , , 1 0 1 8 8 6 9 3 7 5 8 2 5 2 2 1 3 5 1 8 3 7 9 2 2 7 5 , , , , , , 2 2 1 0 5 4 6 3 3 9 6 9 2 3 9 5 7 8 1 8 1 3 4 3 7 8 2 7 , , , , , , 7 2 1 0 8 1 9 5 5 6 6 6 8 9 5 6 4 1 1 8 3 7 7 3 3 3 7 , , , , , , 3 1 6 3 7 2 3 2 7 7 5 9 4 5 2 5 0 7 1 8 1 3 4 3 7 5 0 7 , , , , , , 5 3 3 5 1 3 4 5 1 6 1 2 7 6 8 2 8 8 1 8 3 3 7 7 2 4 7 , , , , , , 8 2 2 8 3 5 5 4 5 7 6 1 1 1 9 3 8 5 1 8 3 7 9 4 3 5 8 , , , , , , 2 0 9 2 1 1 5 9 2 7 4 4 7 8 7 1 6 5 1 8 1 3 4 4 7 5 0 8 , , , , , , 7 3 1 2 0 8 9 0 2 8 7 3 7 4 7 2 9 5 9 Bankers acceptances and commercial paper 2,032 1,976 1,981 2,021 2,026 1,833 1,719 1,711 1.741 1 1 1 1 1 1 0 2 3 4 5 1 T L o o A C a f l o n i l N U n s m o a o . s m S n t n e h c . e - c e i U a r a u r c l d r . i e S d a i d n . r l e s a b b t s d i a y s t d e n u r e r k t e e i s s o a s l n s i n s e e e s t s t h a e t e U nited States 7 7 3 1 9 7 8 1 2 7 , , , , , , 9 5 6 5 3 5 1 9 9 2 6 1 3 1 2 1 9 3 8 7 3 1 0 7 1 2 8 7 , , , , , , 1 8 4 6 3 5 9 9 9 7 0 6 7 7 8 9 0 6 7 8 3 1 8 0 2 8 1 6 , , , , , , 2 5 2 3 8 5 8 3 6 4 4 0 6 8 2 8 3 1 8 7 3 1 1 8 1 2 8 7 , , , , , , 1 9 9 2 4 1 3 1 3 1 1 1 4 9 1 5 5 0 7 8 3 1 9 1 2 7 2 6 , , , , , , 4 6 1 7 0 5 9 4 5 1 3 2 5 6 0 9 6 2 8 7 3 1 1 9 7 2 2 6 , , , , , , 4 3 9 1 1 2 8 7 6 1 9 2 5 5 0 1 3 7 8 7 3 1 2 9 2 7 2 6 , , , , , , 1 9 8 1 3 2 3 6 6 6 6 4 2 4 5 5 6 6 8 8 3 1 7 2 0 2 2 6 , , , , , , 8 5 4 2 1 7 4 3 3 8 0 6 8 5 5 1 0 9 8 8 3 1 0 2 8 2 2 7 , , , , , , 2 2 1 3 1 2 4 8 9 8 4 0 5 4 1 6 1 6 16 Banks in foreign countries 1,558 1,897 1,549 1,692 1,813 1,516 1,669 1,830 1.742 17 Nonbank financial institutions 7,263 7,172 6,690 7,002 6,990 6,751 6,713 7,091 7,180 18 For purchasing and carrying securities .. 2,578 2,412 2,504 2,830 2,936 3,396 2,931 2,644 3,213 2 2 1 0 1 9 Ot A T h o e ll r f o a o i t n s r h s e s e e t i r i g t t s n u t ( g i c o o l n a v s i e m rn s m on e n n ts o n a r n e d l a o te ff d i ci p a a l rties) 2 2 8 , , 5 9 2 6 0 5 5 9 3 29 2 , , 0 5 2 7 3 6 5 3 3 29 1 , , 0 8 2 1 2 6 9 1 1 28 1 , , 3 8 2 2 5 7 0 7 8 27 1 , , 7 2 8 7 3 9 6 2 9 27 1 , , 7 8 3 0 8 0 3 8 6 28 1 , , 0 2 8 5 2 9 7 8 6 28 1 , , 5 9 2 9 0 9 9 7 9 28 1 , , 9 3 7 0 2 7 1 5 3 22 Total assets3 249,805 250,498 248,326 249,110 245,963 248,590 244,830 248,149 255,362 23 Deposits or credit balances due to other than directly related institutions 87,621' 87,8^ 87,404' 88,378' 87,001 87,315 88,746 90,834 91,904 24 Demand deposits 3,757 3,611 3,872 4,340 4,125 3,662 3,875 3,956 4,001 25 Individuals, partnerships, and corporations 2,400 2,248 2,440 2,480 2,339 2,294 2,399 2,370 2,379 26 Other 1,356 1,362 1,432 1,860 1,786 1,367 1,476 1,586 1,622 27 Nontransaction accounts 83,864' 84,208' 83,532' 84,038' 82,876 83,653 84,871 86,878 87,903 28 Individuals, partnerships, and corporations 62,21c 63,231' 63,069' 63,676' 62,673 62,791 63,773 64,863 65,067 29 Other 21,654' 20,978' 20,463' 20,363 20,203 20,862 21,098 22,014 22,836 30 Borrowings from other than directly related institutions 93,150'' 88,740' 93,649' 89,810' 92,404 93,697 88,552 86,834 93,268 31 Federal funds purchased5 49,419 41,893 49,595 44,331 45,399 47,251 44,405 40,755 47,707 32 From commercial banks in the United States 21,703' 17,61c 19.74C 19,689' 21,067 20,712 19,246 15,961 21,485 3 3 3 4 Ot F h r e o r m li a o b t i h li e ti r e s s for borrowed money 4 2 3 7 , , 7 7 3 1 V 5' 4 2 6 4 , , 8 2 4 8 8 3 ' ' 2 4 9 4 , , 8 0 5 5 6 4 ' ' 4 2 5 4 , , 4 6 7 4 9 2 ' ' 4 2 7 4 , , 0 3 0 3 5 2 4 2 6 6 , , 4 5 4 3 6 9 4 2 4 5 , , 1 1 4 5 7 9 4 2 6 4 , , 0 79 7 4 8 4 2 5 6 , , 5 22 6 2 1 35 To commercial banks in the United States 15,977' 16,002' 15,026' 14,940' 14,562 14,484 14,594 14,017 14,824 36 To others 27,754' 30,846' 29,028' 30,539' 32,444 31,962 29,553 32,062 30,737 37 Other liabilities to nonrelated parties 28,529 28,105 27,928 27,874 26,209 26,042 26,124 26,519 27,023 38 Total liabilities6 249,805 250,498 248,326 249,110 245,963 248,590 244,830 248,149 255,362 39 T M o E t M al O l oans (gross) and securities adjusted 155,676 156,743 155,903 158,547 154,805 156,637 155,650 157,399 157,464 40 Net due to related institutions abroad 792 8,757 1,314 9,058 3,804 4,602 5,452 8,721 2,129 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 • October 1991 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1991 IInnssttrruummeenntt 1986 1987 1988 1989 1990 Dec. Dec. Dec. Dec. Dec. Jan. Feb. Mar. Apr. May June Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 331,316 358,997 458,464 530,123 566,688 569,165 561,406 565,734 541,648 533,091 533,659 Financial companies' Dealer-placed paper 2 Total 101,707 102,742 159,777 186,343 218,953 216,148 217,812 222244,,886655 212,337 220066,,550077 220033,,222299 3 Bank-related (not seasonally adjusted) 2,265 1,428 1,248 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Directly placed paper4 4 Total 115511,,889977 174,332 194,931 212,640 201,862 220022,,778844 119977,,779999 119900,,228855 118844,,770033 118833,,338833 118899,,551122 5 Bank-related (not seasonally adjusted)3 40,860 43,173 43,155 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 6 Nonfinancial companies5 77,712 81,923 103,756 131,140 145,873 150,233 145,795 150,584 144,608 143,201 140,918 Bankers dollar acceptances (not seasonally adjusted)6 7 Total 64,974 70,565 66,631 62,972 54,771 56,498 52,831 48,795 47,086 46,438 45,539 Holder 8 Accepting banks 13,423 10,943 9,086 9,433 9,017 10,029 10,240 9,237 8,593 10,138 10,028 9 Own bills 11,707 9,464 8,022 8,510 7,930 8,539 8,391 7,569 7,599 8,179 8,414 10 Bills bought 1,716 1,479 1,064 924 1,087 1,490 1,849 1,668 994 1,959 1,613 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 1,066 918 927 892 872 934 1,053 1,203 13 Others 50,234 58,658 56,052 52,473 44,836 45,542 41,699 38,686 37,559 35,247 34,308 Basis 14 Imports into United States 14,670 16,483 14,984 15,651 13,096 14,284 13,799 12,509 12,511 12,821 13,431 15 Exports from United States 12,960 15,227 14,410 13,683 12,703 12,870 12,082 11,500 11,219 11,511 11,416 16 All other 37,344 38,855 37,237 33,638 28,973 29,344 26,950 24,786 23,356 22,106 20,691 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 Rate Period Av r e a r t a e ge Period Av r e a r te a 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 .. 11.00 A M p a r r . . 8 8 . . 5 5 0 0 J A u u ly g . . . . . . 1 1 0 0 . . 9 5 8 0 J A u u ly g . .. . . . 1111..0500 J M u a n y e 8 9 . . 8 0 4 0 S O e c p t. t . .. . . . 1 1 0 0 . . 5 5 0 0 O Se c p t. t . .. . . . 10.50 July 9.29 Nov. .. 10.50 Nov. .. Aug. 9.84 Dec. .. 10.50 Dec. 10.00 Sept. 10.00 9.50 Oct. 10.00 1991—Jan. 9.00 Nov. 10.05 Feb. 8.50 Dec. 10.50 Mar. 8.00 Apr. May . June July , Aug. 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 IItteemm 11998888 11998899 11999900 Apr. May June July June 28 July 5 July 12 July 19 July 26 MONEY MARKET INSTRUMENTS 77..5577 99..2211 8 10 5 91 5.78 5.90 5.82 5.79 6.34 5.79 5.85 5.75 66..2200 66..9933 6.98 5.98 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 Commercial paper3,5,6 7.58 9.11 8.15 6.08 5.91 6.06 5.98 6.08 6.06 6.02 5.96 5.93 7.66 8.99 8.06 6.07 5.92 6.11 6.05 6.12 6.13 6.13 6.04 5.98 7.68 8.80 7.95 6.07 5.94 6.16 6.14 6.18 6.17 6.18 6.15 6.09 Finance paper, directly placed3,5,7 7.44 8.99 8.00 5.95 5.76 5.93 5.86 5.94 5.91 5.89 5.84 5.83 7.38 8.72 7.87 5.94 5.81 5.96 5.89 5.95 5.93 5.93 5.88 5.87 7.14 8.16 7.53 5.91 5.72 5.75 5.81 5.84 5.85 5.84 5.79 5.82 Bankers acceptances3,5'* 7.56 8.87 7.93 5.92 5.75 5.94 5.89 5.94 5.93 5.92 5.90 5.83 7.60 8.67 7.80 5.92 5.77 6.00 5.97 6.01 6.04 6.01 5.96 5.91 Certificates of deposit, secondary marker9 7.59 9.11 8.15 6.03 5.86 6.00 5.92 5.99 5.95 5.95 5.91 5.89 7.73 9.09 8.15 6.06 5.91 6.07 5.98 6.05 6.04 6.02 5.97 5.94 7.91 9.08 8.17 6.16 6.03 6.26 6.25 6.30 6.32 6.31 6.24 6.21 7.85 9.16 8.16 6.11 5.94 6.08 6.01 6.05 6.08 6.06 6.03 6.00 U.S. Treasury bills Secondary market3,3 6.67 8.11 7.50 5.65 5.46 5.57 5.58 5.56 5.58 5.57 5.59 5.58 6.91 8.03 7.46 5.71 5.61 5.75 5.70 5.74 5.71 5.68 5.73 5.72 7.13 7.92 7.35 5.85 5.76 5.% 5.91 5.96 6.00 5.90 5.92 5.90 Auction average3'5,11 6.68 8.12 7.51 5.67 5.51 5.60 5.58 5.58 5.59 5.58 5.56 5.60 6.92 8.04 7.47 5.73 5.65 5.76 5.71 5.76 5.71 5.71 5.70 5.72 77..1177 77..9911 7.36 5.88 5.71 5.73 6.00 n.a. 6.00 n.a. n.a. n.a. U.S. TREASURY NOTES AND BONDS Constant maturities12 7.65 8.53 7.89 6.24 6.13 6.36 6.31 6.36 6.40 6.30 6.32 6.29 8.10 8.57 8.16 6.95 6.78 6.% 6.92 6.98 7.00 6.95 6.90 6.89 8.26 8.55 8.26 7.23 7.12 7.39 7.38 7.42 7.42 7.44 7.38 7.35 8.47 8.50 8.37 7.70 7.70 7.94 7.91 7.96 7.95 7.97 7.92 7.87 8.71 8.52 8.52 7.92 7.94 8.17 8.15 8.20 8.18 8.21 8.15 8.11 8.85 8.49 8.55 8.04 8.07 8.28 8.27 8.31 8.28 8.32 8.28 8.25 8.96 8.45 8.61 8.21 8.27 8.47 8.45 8.49 8.45 8.50 8.47 8.43 Composite13 88..9988 88..5588 8.74 8.29 8.33 8.54 8.50 8.56 8.51 8.55 8.52 8.47 STATE AND LOCAL NOTES AND BONDS Moody's series14 7.36 7.00 6.96 6.70 6.70 6.83 6.82 6.85 6.85 6.89 6.80 6.73 7.83 7.40 7.29 7.18 7.10 7.21 7.18 7.23 7.23 7.25 7.16 7.09 77..6688 77..2233 77..2277 7.02 6.95 7.13 7.05 7.13 7.10 7.07 7.04 7.00 CORPORATE BONDS 10.18 9.66 9.77 9.33 9.32 9.45 9.42 9.46 9.44 9.46 9.42 9.39 Rating group 3 3 3 4 A Aa a a 9 9 . . 7 9 1 4 9 9 . . 2 4 6 6 9 9 . . 3 5 2 6 9 8 . . 1 8 2 6 8 9. . 1 8 5 6 9 9. . 2 0 8 1 9 9 . . 2 0 5 0 9 9 . . 0 2 4 9 9 9. . 2 0 7 4 9 9 . . 0 2 4 8 9 8 . . 2 9 7 9 9 8 . . 2 9 3 7 35 A 10.24 9.74 9.82 9.39 9.41 9.55 9.51 9.55 9.53 9.55 9.52 9.50 10.83 10.18 10.36 9.94 9.86 9.96 9.89 9.95 9.91 9.96 9.92 9.84 37 A-rated, recently offered utility bonds17 10.20 9.79 10.01 9.46 9.45 9.53 9.55 9.51 9.58 9.53 9.61 9.53 MEMO: Dividend-price ratio18 9.23 9.05 8.96 8.43 8.21 8.26 8.21 8.24 8.22 8.14 8.25 8.27 33..6644 33..4455 3.61 3.19 3.23 3.23 3.20 3.28 3.26 3.24 3.18 3.21 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 of ten issues: four public utilities, four industrials, one financial, and one 10. Bid rates for Eurodollar deposits at 11 a.m. London time. Data are for transportation. Common stock ratios on the 500 stocks in the price index. indication purposes only. NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases. 11. Auction date for daily data; weekly and monthly averages computed on an For address, see inside front cover. issue-date basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Nonfinancial Statistics • October 1991 1.36 STOCK MARKET Selected Statistics 1990 1991 Nov. Dec. Jan. Feb. Mar. Apr. May June July Prices and trading (averages of daily figures) Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 149.96 180.13 183.58 172.21 179.57 177.95 197.75 203.56 207.71 207.07r 207.32 208.29 2 Industrial 180.83 228.04 225.89 212.81 221.86 220.69 246.74 255.36 260.16 260.13 261.16 262.69 3 Transportation 134.07 174.90 158.88 132.96 141.31 145.89 166.06 166.26 166.90 170.77 177.05 177.27 4 Utility 72.22 94.33 90.71 89.69 91.56 88.59 92.08 92.29 92.92 90.73 89.01 90.08 5 Finance 127.41 162.01 133.36 113.76 122.18 121.39 141.03 145.41 152.64 151.32 152.30 151.69 6 Standard & Poor's Corporation (1941-43 = 10)' 265.86 323.05 334.83 315.29 328.75 325.49 362.26 372.28 379.68 378.27r 378.29 380.23 7 American Stock Exchange (Aug. 31, 1973 = 50? 295.06 356.67 338.58 294.88 305.54 304.08 338.11 353.98 365.02 362.67 366.06 364.33 Volume of trading (thousands of shares) 8 New York Stock Exchange 161,509 165,568 156,777 149,916 155,836 166,323 226,635 196,343 182,510 170,337 162,154 162,065 9 American Stock Exchange 9,955 13,124 13,155 10,368 11,620 10,870 16,649 15,326 13,140 10,995 11,477 10,883 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers3 32,740 34,320 28,210 27,820 28,210 27,390 28,860 29,660 30,020 29,980 31,280 30,600 Free credit balances at brokers4 11 Margin-account 5,660 7,040 8,050 7,300 8,050 7,435 7,190 7,320 6,975 7,200 6,690 6,545 12 Cash-account 16,595 18,505 19,285 17,025 19,285 18,825 19,435 19,555 17,830 16,650 18,110 16,945 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 alized by securities. Margin requirements on securities other than options are the companies. With this change the index includes 400 industrial stocks (formerly difference between the market value (100 percent) and the maximum loan value of 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40 collateral as prescribed by the Board. Regulation T was adopted effective Oct. 15, financial. 1934; Regulation U, effective May 1, 1936; Regulation G, effective Mar. 11, 1968; 2. Beginning July 5, 1983, the American Stock Exchange rebased its index and Regulation X, effective Nov. 1, 1971. effectively cutting previous readings in half. On Jan. 1, 1977, the Board of Governors for the first time established in 3. Beginning July 1983, under the revised Regulation T, margin credit at Regulation T the initial margin required for writing options on securities, setting broker-dealers includes credit extended against stocks, convertible bonds, stocks it at 30 percent of the current market-value of the stock underlying the option. On acquired through exercise of subscription rights, corporate bonds, and govern- Sept. 30, 1985, the Board changed the required initial margin, allowing it to be the ment securities. Separate reporting of data for margin stocks, convertible bonds, same as the option maintenance margin required by the appropriate exchange or and subscription issues was discontinued in April 1984. self-regulatory organization; such maintenance margin rules must be approved by 4. Free credit balances are in accounts with no unfulfilled commitments to the the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC brokers and are subject to withdrawal by customers on demand. approved new maintenance margin rules, permitting margins to be the price of the 5. New series beginning June 1984. option plus 15 percent of the market value of the stock underlying the option. 6. These regulations, adopted by the Board of Governors pursuant to the Effective June 8, 1988, margins were set to be the price option plus 20 percent Securities Exchange Act of 1934, limit the amount of credit to purchase and carry of the market value of the stock underlying the option (or 15 percent in the case "margin securities" (as defined in the regulations) when such credit is collater- of stock-index options). 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 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May SAIF-insured institutions 1 Assets 1,350,500 1,249,055 1,156,789 1,125,653 l,116,354r 1,109,055' 1,084,821' 1,066,015' 1,054,800' 1,042,161' 1,027,608' 1,020,745 2 Mortgages 764,513 733,729 684,936 665,655 662,309 653,508' 633,385' 624,691' 619,622' 610,644' 608,864' 605,896 3 Mortgage-backed securities 214,587 170,532 156,398 154,197 153,469 155,616 155,228' 151,414' 149,329' 147,539' 143,976' 114411,,559900 4 Contra-assets to mortgage assets1 . 37,950 25,457 19,453 18,550 17,139 17,076' 16,897' 15,185' 14,673' 14,494' 14,312' 14,359 5 Commercial loans 33,889 32,150 27,868 26,762 26,05 r 25,261' 24,125' 23,668 23,207' 22,306' 21,913' 21,736 6 Consumer loans 61,922 58,685 53,387 51,874 50,746 50,177 48,753' 48,131' 47,731' 47,634' 46,702' 45,826 7 Contra-assets to nonmortgage loans . 3,056 3,592 2,034 1,982 1,769 1,692 1,936 1,701' 1,854' 1,819' 1,739' 1,737 8 Cash and investment securities 186,986 166,053 153,061 148,058 145,286 145,998 146,644' 140,523' 138,885' 138,993' 132,876' 134,021 9 Other3 129,610 116,955 102,627 99,640 97,579' 97,262' 95,522' 94,474' 92,553' 91,358' 89,328' 87,773 10 Liabilities and net worth . 1,350,500 1,249,055 1,156,789 1,125,653 l,116,354r 1,109,055' 1,084,821' 1,066,015' 1,054,800' 1,042,161' 1,027,608' 1,020,745 11 Savings capital 971,700 945,656 878,736 857,688 851,810 846,822 835,496 823,514' 816,493' 816,993' 806,272' 801,685 12 Borrowed money 299,400 252,230 221,872 213,563 208,105 203,855 197,353 188,914' 183,672 169,422' 164,274' 159,636 13 FHLBB 134,168 124,577 105,882 101,731 100,574 100,493 100,391 95,8^ 94,658 90,555 86,779 82,312 14 Other 165,232 127,653 115,990 111,832 107,531 103,362 96,962 93,095 89,014 78,867' 77,495' 77,324 15 Other 24,216 27,556 28,293 23,874 25,654' 26,152' 21,332' 22,167' 23,328' 20,323' 21,726' 23,640 16 Net worth n.a. 23,612 27,889 30,526 30,793' 32,225' 30,640' 31,419r 31,308' 35,423' 35,336' 35,783 SAIF-insured federal savings banks 17 Assets 425,966 498,522 584,632 591,136 588,880 585,847 576,531 567,373 556,708 552,520 549,319 552,240 18 Mortgages 230,734 283,844 328,895 332,927 332,431 328,122 320,233 316,889 313,880 309,618 311,932 312,230 19 Mortgage-backed securities 64,957 70,499 80,994 82,418 82,219 84,190 81,205 79,451 78,290 77,684 75,147 75,075 20 Contra-assets to mortgage assets . 13,140 13,548 9,339 9,964 9,578 9,305 9,591 8,222 7,777 7,975 7,638 7,932 21 Commercial loans 16,731 18,143 18,662 18,767 18,458 18,197 17,674 17,299 17,008 16,556 16,215 16,340 22 Consumer loans 24,222 28,212 31,183 30,750 30,682 30,421 29,933 31,179 29,292 30,586 30,433 30,283 23 Contra-assets to nonmortgage loans . 889 1,193 813 980 572 809 990 770 895 966 951 1,031 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 73,756 73,602 75,117 72,454 75,940 71,066 67,721 68,157 65,786 68,847 26 Other 35,412 39,981 44,129 46,043 45,287 45,319 45,008 44,768 44,210 43,714 43,292 43,377 27 Liabilities and net worth . 425,966 498,522 584,632 591,136 588,880 585,847 576,531 567,373 556,708 552,520 549,319 552,240 28 Savings capital 298,197 360,547 424,260 434,705 436,080 436,903 434,297 428,822 422,745 425,720 422,955 424,158 29 Borrowed money 99,286 108,448 120,592 119,991 115,472 111,270 107,270 102,313 97,089 90,692 89,310 90,089 30 FHLBB 46,265 57,032 62,209 61,605 60,256 60,265 59,949 57,703 56,078 53,134 51,736 50,726 31 Other 53,021 51,416 58,383 58,386 55,216 51,005 47,321 44,610 41,011 37,558 37,574 39,363 32 Other 8,075 9,041 10,128 8,253 9,063 9,824 8,193 8,356 8,721 7,700 8,211 9,098 33 Net worth 20,218 22,716 26,420 24,859 24,837 24,931 24,172 25,285 25,432 25,494 25,542 25,570 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Nonfinancial Statistics • October 1991 1.37—Continued 1990 1991 AAccccoouunntt 11998888 11998899 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Credit unions4 34 Total assets/liabilities and capital 174,593 183,688 196,625 197,272 198,206 35 Federal 114,566 120,666 128,715 129,086 130,073 36 State 60,027 63,022 67,910 68,186 68,133 37 Loans outstanding.. 113,191 122,608 126,156 127,341 127,132 38 Federal 73,766 80,272 82,040 82,823 83,029 39 State 39,425 42,336 44,116 44,518 44,102 40 Savings 159,010 167,371 178,081 177,532 179,974 41 Federal (shares).. 104,431 109,653 116,411 115,469 117,892 42 State (shares and deposits) 54,579 57,718 61,670 62,063 62,082 Life insurance companies5 43 Assets 1,299,756 1,387,463 1,411,881 Securities 44 Government 178,141 202,962 208,782 45 United States6 153,361 175,156 180,200 46 State and local 9,028 11,818 12,038 47 Foreign 15,752 15,988 16,544 48 Business 663,677 709,470 724,603 49 Bonds 538,063 588,251 596,053 50 Stocks 125,614 121,219 128,550 51 Mortgages 254,215 266,063 267,922 52 Real estate 39,908 44,544 44,718 53 Policy loans 57,439 60,641 61,562 54 Other assets 106,376 103,783 104,294 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. Savings Association Insurance Fund (SAIF)-insured institutions: Estiunearned discounts and deferred loan fees, valuation allowances for mortgages mates by the Office of Thrift Supervision (OTS) for all institutions insured by the "held for sale," and specific reserves and other valuation allowances. SAIF and based on the OTS thrift Financial Report. 2. Contra-assets are credit-balance accounts that must be subtracted from the SAIF-insured federal savings banks: Estimates by the OTS for federal savings corresponding gross asset categories to yield net asset levels. Contra-assets to banks insured by the SAIF and based on the OTS thrift Financial Report. nonmortgage loans include loans in process, unearned discounts and deferred loan Credit unions: Estimates by the National Credit Union Administration for fees, and specific reserves and valuation allowances. federally chartered and federally insured state-chartered credit unions serving 3. Includes holding of stock in Federal Home Loan Bank and Finance leases natural persons. plus interest. Life insurance companies: Estimates of the American Council of Life Insurance 4. Data include all federally insured credit unions, both federal and state for all life insurance companies in the United States. Annual figures are annualchartered, serving natural persons. statement asset values, with bonds carried on an amortized basis and stocks at 5. Data are no longer available on a monthly basis for life insurance companies. year-end market value. Adjustments for interest due and accrued and for 6. Direct and guaranteed obligations. Excludes federal agency issues not differences between market and book values are not made on each item separately guaranteed, which are shown in the table under "Business" securities. but are included, in total, in "Other assets." 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 1991 111999888888 111999888999 111999999000 Feb. Mar. Apr. May June July U.S. budget1 1 Receipts, total 908,166 990,701 1,031,308 67,657 64,805 140,380 63,560 103,389 7788,,559933 7 On-budget 666,675 727,035 749,654 45,594 39,011 108,746 41,958 76,322 56,327 3 Off-budget 241,491 263,666 281,654 22,063 25,794 31,634 21,602 27,067 22,266 4 Outlays, total 1,063,318 1,144,020 1,251,766 93,834 105,876 110,249 116,906 105,849 119,384 5 On-budget 860,627 933,107 1,026,701 72,667 83,340 90,362 95,903 90,901 99,532 6 Off-budget 202,691 210,911 225,065 21,167 22,536 19,887 21,003 14,948 19,852 7 Surplus or deficit (-), total -155,151 -153,319 -220,458 -26,177 -41,071 30,131 -53,346 -2,460 -40,791 8 On-budget -193,952 -206,072 -277,047 -27,073 -44,329 18,384 -53,945 -14,579 -43,205 9 Off-budget 38,800 52,753 56,590 896 3,258 11,747 599 12,119 2,414 Source of financing (total) 10 Borrowing from the public 166,139 141,806 264,453 34,611 -9,913 -9,399 41,742 10,715 34,434 11 Operating cash (decrease, or increase (-)) ... -7,962 3,425 818 2,341 28,473 -16,214 20,362 -15,730 6,728 12 Other ^ ' -3,026 8,088 -44,813 -10,775 22,511 -4,518 -8,758 7,475 -371 MEMO 13 Treasury operating balance (level, end of period) 44,398 40,973 40,155 60,474 32,001 48,215 27,853 43,538 36,855 14 Federal Reserve Banks 13,023 13,452 7,638 23,898 10,922 13,682 6,619 11,822 5,831 15 Tax and loan accounts 31,375 27,521 32,517 36,577 21,078 34,533 21,234 31,761 31,024 1. In accordance with the Balanced Budget and Emergency Deficit Control Act in the International Monetary Fund (IMF); loans to the IMF; other cash and of 1985, all former off-budget entries are now presented on-budget. The Federal monetary assets; accrued interest payable to the public; allocations of special Financing Bank (FFB) activities are now shown as separate accounts under the drawing rights; deposit funds; miscellaneous liability (including checks outstandagencies that use the FFB to finance their programs. The act has also moved two ing) and asset accounts; seigniorage; increment on gold; net gain or loss for U.S. social security trust funds (Federal old-age survivors insurance and Federal currency valuation adjustment; net gain or loss for IMF loan-valuation adjustdisability insurance trust funds) off-budget. The Postal Service B included as an ment; and profit on sale of gold. off-budget item in the Monthly Treasury Statement beginning in 1990. SOURCES. Monthly Treasury Statement of Receipts and Outlays of the U.S. 2. Includes special drawing rights (SDRs); reserve position on the U.S. quota 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 • October 1991 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1 Millions of dollars Calendar year Fiscal Fiscal Source or type year year 1989 1990 1991 1989 1990 H2 HI H2 HI May June July RECEIPTS 1 AU sources 990,701 1,031,308 470,276 548,861 503,123 540,504 63,560 103,389 78,593 7 Individual income taxes, net 445,690 466,884 218,706 243,087 230,745 232,389 20,005 44,517 38,403 3 Withheld 361,386 390,480 193,296 190,219 207,469 193,440 36,958 27,449 37,119 4 Presidential Election Campaign Fund 32 32 3 30 3 31 6 6 0 Nonwithheld 154,839 149,189 33,303 117,675 31,728 109,405 3,067 18,681 2,971 6 Refunds 70,567 72,817 7,898 64,838 8,455 70,487 20,026 1,618 1,687 Corporation income taxes 7 Gross receipts 117,015 110,017 52,269 58,830 54,044 58,903 2,931 17,472 3,039 8 Refunds 13,723 16,510 6,842 8,326 7,603 7,904 899 932 1,270 9 Social insurance taxes and contributions, net 359,416 380,047 162,574 210,476 178,468 214,303 34,546 34,758 30,360 10 Employment taxes and contributions2 332,859 353,891 152,407 195,269 167,224 199,727 27,192 34,152 28,424 11 Self-employment taxes and contributions 18,504 21,795 1,947 19,017 2,638 22,150 1,604 3,136 0 12 Unemployment insurance 22,011 21,635 7,909 12,929 8,9% 12,296 6,928 251 1,578 13 Other net receipts 4,546 4,522 2,260 2,278 2,249 2,279 426 355 358 14 Excise taxes 34,386 35,345 16,799 18,153 17,535 20,703 3,653 3,534 4,274 15 Customs deposits 16,334 16,707 8,667 8,096 8,568 7,488 1,244 1,215 1,464 16 Estate and gift taxes 8,745 11,500 4,451 6,442 5,333 5,631 835 708 1,065 17 Miscellaneous receipts 22,839 27,316 13,651 12,106 16,032 8,991 1,245 2,117 1,258 OUTLAYS 18 All types 1,144,020 1,251,766 587,394 640,867 647,218 631,737 116,906 105,849 119,384 19 National defense 303,559 299,335 149,613 152,733 149,497 122,089 25,069 21,934 23,910 20 International affairs 9,574 13,760 5,971 6,770 8,943 7,592 1,862 725 860 21 General science, space, and technology 12,838 14,420 7,091 6,974 8,081 7,4% 1,410 1,199 1,312 22 Energy 3,702 2,470 1,449 1,216 979 816 513 180 175 23 Natural resources and environment 16,182 17,009 9,183 7,343 9,933 8,324 1,557 1,518 1,566 24 Agriculture 16,948 11,998 4,132 7,450 6,878 7,684 1,638 597 664 25 Commerce and housing credit 29,091 67,495 22,295 38,672 37,491 17,992r 3,115 6,424r 15,199 26 Transportation 27,608 29,495 14,982 13,754 16,218 14,748 2,631 2,562 2,721 27 Community and regional development 5,361 8,466 4,879 3,987 3,939 3,552 698 503 542 28 Education, training, employment, and social services 36,694 37,479 18,663 19,537 18,988 21,234 3,404 3,175 2,967 79 Health 48,390 58,101 25,339 29,488 31,424 35,608 6,059 6,917 6,220 30 Social security and medicare 317,506 346,383 162,322 175,997 176,353 190,247r 32,621 33,907r 32,246 31 Income security 136,031 148,299 67,950 78,475 75,948 88,778 16,307 9,827 14,803 37 Veterans benefits and services 30,066 29,112 14,864 15,217 15,479 14,326 3,674 1,168 2,654 33 Administration of justice 9,422 10,076 4,909 4,868 5,265 6,187 1,219 930 1,072 34 General government 9,124 10,822 4,760 4,916 6,976 5,212 1,266 1,592 -64 35 Net interest6 169,317 183,790 87,927 91,155 94,650 98,556 17,042 15,746 15,994 36 Undistributed offsetting receipts -37,212 -36,615 -18,935 -17,688 -19,829 -18,702 -3,180 -3,051 -3,454 1. Functional details do not sum 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, end of period 1989 1990 1991 IItteemm June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 1 Federal debt outstanding 2,824.0 2,881.1 2,975.5 3,081.9 3,175.5 3,266.1 3,397.3 3,491.7 3,562.9 2 Public debt securities 2,799.9 2,857.4 2,953.0 3,052.0 3,143.8 3,233.3 3,364.8 3,465.2 3,538.0 2,142.1 2,180.7 2,245.2 2,329.3 2,368.8 2,437.6 2,536.6 n.a. n.a. 4 Held by agencies 657.8 676.7 707.8 722.7 775.0 795.8 828.3 n.a. n.a. 5 Agency securities 24.0 23.7 22.5 29.9 31.7 32.8 32.5 n.a. n.a. 6 Held by public 23.6 23.5 22.4 29.8 31.6 32.6 32.4 n.a. n.a. 7 Held by agencies .5 .1 .1 .2 .2 .2 .1 n.a. n.a. 8 Debt subject to statutory limit 2,784.6 2,829.8 2,921.7 2,988.9 3,077.0 3,161.2 3,281.7 3,377.1 3,450.3 9 Public debt securities 2,784.3 2,829.5 2,921.4 2,988.6 3,076.6 3,160.9 3,281.3 3,376.7 3,449.8 10 Other debt1 .2 .3 .3 .3 .4 .4 .4 .4 .4 11 MEMO: Statutory debt limit 2,800.0 2,870.0 3,122.7 3,122.7 3,122.7 3,195.0 4,145.0 4,145.0 4,145.0 1. Consists of guaranteed debt ofTreasury and otherfederal 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 11998877 11998888 11998899 11999900 Q3 Q4 Ql Q2 1 Total gross public debt 2,431.7 2,684.4 2,953.0 3,364.8 3,233.3 3,364.8 3,465.2 3,538.0 By type 2 Interest-bearing 2,428.9 2,663.1 2,931.8 3,362.0 3,210.9 3,362.0 3,441.4 3,516.r 3 Marketable 1,724.7 1,821.3 1,945.4 2,195.8 2,092.8 2,195.8 2,227.9 2,268.1 4 Bills 389.5 414.0 430.6 527.4 482.5 527.4 533.3 521.5R 5 Notes 1,037.9 1,083.6 1,151.5 1,265.2 1,218.1 1,265.2 1,280.4 1,320.3 6 Bonds 282.5 308.9 348.2 388.2 377.2 388.2 399.3 411.2 7 Nonmarketable 704.2 841.8 986.4 1,166.2 1,118.2 1,166.2 1,213.5 1,248.0 8 State and local government series 139.3 151.5 163.3 160.8 161.3 160.8 159.4 161.0 9 Foreign issues2 4.0 6.6 6.8 43.5 36.0 43.5 42.8 42.1 10 Government 4.0 6.6 6.8 43.5 36.0 43.5 42.8 42.1 11 Public .0 .0 .0 .0 .0 .0 .0 .0 12 Savings bonds and notes. 99.2 107.6 115.7 124.1 122.2 124.1 127.7 131.3 13 Government account series3 461.3 575.6 695.6 813.8 779.4 813.8 853.1 883.2 14 Non-interest-bearing debt 2.8 21.3 21.2 2.8 22.4 2.8 23.8 21.9 By holder4 15 U.S. Treasury and other federal agencies and trust funds. 477.6 589.2 707.8 828.3 795.8 828.3 16 Federal Reserve Banks 222.6 238.4 228.4 259.8 232.5 259.8 17 Private investors 1,731.4 1,858.5 2,015.8 2,288.3 2,207.3 2,288.3 18 Commercial banks 201.5 193.8 174.8 n.a. 188.0 n.a. 19 Money market funds 14.6 11.8 14.9 n.a. 33.6 n.a. 20 Insurance companies 104.9 107.3 130.1 n.a. 138.9 n.a. n.a. n.a. 21 Other companies 84.6 87.1 98.8 n.a. 114.6 n.a. 22 State and local treasuries 284.6 313.6 338.7 n.a. 344.0 n.a. Individuals 23 Savings bonds 101.1 109.6 117.7 126.2 123.9 126.2 24 Other securities 71.3 79.2 98.8 n.a. 114.6 n.a. 25 Foreign and international 299.7 362.2 392.9 n.a. 404.9 n.a. 26 Other miscellaneous investors6 569.1 593.4 672.5 n.a. n.a. n.a. 1. Includes (not shown separately): Securities issued to the Rural Electrifica- estimates. tion Administration; depository bonds, retirement plan bonds, and individual 5. Consists of investments of foreign and international accounts. Excludes retirement bonds. non-interest-bearing notes issued to the International Monetae Fund. 2. Nonmarketable series denominated in dollar and series denominated in 6. Includes savings and loan associations, nonprofit institutions, credit unions, foreign currency held by foreigners. mutual savings banks, corporate pension trust funds, dealers and brokers, certain 3. Held almost entirely by U.S. Treasury and other federal agencies and trust U.S. Treasury deposit accounts, and federally-sponsored agencies. funds. SOURCES. Data by type of security, U.S. Treasury Department, Monthly 4. Data for Federal Reserve Banks and U.S. Treasury and other Federal Statement of the Public Debt of the United States; data by holder, the Treasury agencies and trust ftinds are actual holdings; data for other groups are Treasury Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • October 1991 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Millions of dollars, daily averages, par value 1991 1991, week ending IItteemm Apr. May June June 5 June 12 June 19 June 26 July 3 July 10 July 17 July 24 July 31 IMMEDIATE TRANSACTIONS2 By type of security U.S. Treasury securities 1 Bills 30,498 30,745 30,281 36,132 28,990 26,200 30,228 35,068 27,527 27,252 23,224 30,130 Coupon securities 2 Maturing in less than 3.5 years .. 37,426 43,429 32,941 38,248 32,478 28,826 32,234 38,197 30,539 32,948 32,346 32,414 3 Maturing in 3.5 to 7.5 years 30,113 24,695 23,422 24,969 22,212 23,873 23,335 23,217 20,200 26,830 24,943 22,270 4 Maturing in 7.5 to 15 years 11,243 14,556 10,805 13,252 11,636 10,114 9,310 10,523 7,112 8,949 7,971 10,746 5 Maturing in 15 years or more ... 12,905 13,550 11,497 12,858 12,736 12,074 9,546 9,787 9,682 10,782 9,653 13,834 Federal agency securities Debt 6 Maturing in less than 3.5 years .. 4,231' 4,284' 4,028' 4,518' 3,629' 3,702 3,963 5,269 4,485 3,944 4,347 4,842 7 Maturing in 3.5 to 7.5 years 577' 642' 554' 577' 481 414 639 354 362 360 448 8 Maturing in 7.5 years or more .. 667' 712' 662' 1,099' 641' 519 621 519 693 583 844 425 Mortgage-backed securities 9 Pass-throughs 10,587' 9,607 10,706 9,653 11,318 12,075 10,067 8,930 10,813 9,468 8,293 8,994 10 All others 1,385' 1,364' 1,867' 1,658' 1,860' 1,964 1,761 2,218 1,489 1,775 1,742 1,972 By type of counterparty Primary dealers and brokers 11 U.S. Treasury and Federal agency securities 74,699 76,948 67,404 77,184 66,456 62,760 65,514 71,442 57,979 65,997 61,049 65,320 Federal agency 12 Debt securities 1,620' 1,621' 1,365' 1,733' 1,204' 1,305 1,283 1,576 1,416 1,324 1,516 1,517 13 Mortgage-backed securities.. 5,742r 5,011' 6,053' 5,377' 5,842' 7,468 5,678 4,992 5,989 5,085 4,517 4,372 Customers 14 U.S. Treasury and Federal agency securities 47,485' 50,027 41,542 48,275 41,596 38,327 39,139 45,350 37,082 40,764 37,087 44,075 Federal agency 15 Debt securities 3,855' 4,017' 3,879' 4,703' 3,643' 3,397 3,714 4,850 4,116 3,565 4,036 4,198 16 Mortgage-backed securities.. 6,230' 5,960' 6,52(T 5,933' 7,337' 6,571 6,151 6,155 6,313 6,157 5,518 6,594 FUTURE AND FORWARD TRANSACTIONS4 By type of deliverable security U.S. Treasury securities 17 Bills 3,782 4,201 5,531 4,927 4,005 5,807 6,841 6,286 3,306 3,187 3,072 2,721 Coupon securities 18 Maturing in less than 3.5 years . 1,065 1,292 1,285 1,340 1,218 1,323 1,218 1,442 967 1,015 768 760 19 Maturing in 3.5 to 7.5 years 740 569 607 593 704 628 456 714 224 621 580 416 20 Maturing in 7.5 to 15 years 810 938 1,346' 1,680 1,497 1,582 828 1,172 554 721 675 990 21 Maturing in 15 years or more ... 7,735 8,030 9,082' 10,348 10,059 9,237 8,105 6,801 6,956 7,664 6,768 8,404 Federal agency securities Debt 22 Maturing in less than 3.5 years .. 56 57 68 % 116 24 31 106 7 227 80 4 23 Maturing in 3.5 to 7.5 years 25 11 47 10 141 4 n.a. 91 4 5 8 104 24 Maturing in 7.5 years or more .. 41 26 20 11 22 18 28 18 22 10 22 30 Mortgage-backed securities 25 Pass-throughs 9,316 9,536 9,604 9,456 11,342 8,628 8,942 9,575 10,999 12,779 10,403 8,656 26 All others 1,472 1,684 1,697 1,768 2,143 1,051 1,839 1,737 1,658 1,752 1,900 1,252 OPTION TRANSACTIONS5 By type of underlying securities U.S. Treasury securities 27 Bills n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Coupon securities 28 Maturing in less than 3.5 years . 874 1,056 2,104 2,264 2,189 1,356 2,740 1,928 650 4,723 6,717 6,586 29 Maturing in 3.5 to 7.5 years 196 138 243 157 293 254 146 458 176 174 47 222 30 Maturing in 7.5 to 15 years 226 245 284 362 296 349 140 340 83 290 309 291 31 Maturing in 15 years or more ... 2,249 2,205 2,048' 1,569 2,615 1,936 1,881 2,048 1,672 1,544 2,302 2,412 Federal agency securities Debt 32 Maturing in less than 3.5 years .. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 33 Maturing in 3.5 to 7.5 years n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 34 Maturing in 7.5 years or more .. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Mortgage-backed securities 35 Pass-throughs 333 202 275 249 443 310 158 103 237 412 146 432 36 All others n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 1. Transactions are market purchases and sales of securities as reported to the estate mortgage investment conduits (REMICs); interest only (IOs), and principal Federal Reserve Bank of New York by the U.S. government securities dealers on only (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. Treasury 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. Treasury and federal agency securities. Stripped securities are reported at market value by maturity of coupon or corpus. Note. In tables 1.42 and 1.43, the term "n.a." refers to data that are not 3. Includes securities such as collateralized mortgage obligations (CMOs), real published because of insufficient activity. 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 1991 IItteemm Apr. May June May 29 June 5 June 12 June 19 June 26 July 3 July 10 July 17 July 24 Positions2 NET IMMEDIATE3 By type of security U.S. Treasury securities 1 Bills 8,014 2,907 10,964 6,153 9,438 10,685 12,008 9,231 14,569 15,197 16,019 18,545 Coupon securities 2 Maturing in less than 3.5 years 3,892 -1,704 -1,976 -94 -166 -2,150 -3,657 -942 -2,802 -4,455 -6,513 -3,238 3 Maturing in 3.5 to 7.5 years 3,735 1,808 1,677 3,465 136 2,151 -477 3,083 4,083 7,356 7,192 9,515 4 Maturing in 7.5 to 15 years -6,301 -4,408 -4,972 -4,006 -4,915 -4,941 -5,278 -4,560 -5,284 -5,347 -5,591 -3,841 5 Maturing in 15 years or more -12,982 -13,156 -15,092 -13,102 -13,947 -14,841 -16,073 -15,128 -15,186 -15,698 -17,357 -18,307 Federal agency securities Debt 6 Maturing in less than 3.5 years 3,547 4,960 6,230 4,597 6,490 5,598 6,158 6,835 6,077 6,274 5,863 5,286 7 Maturing in 3.5 to 7.5 years 2,466 2,484 2,192 2,340 2,263 2,196 2,304 2,054 2,142 2,057 1,810 1,621 8 Maturing in 7.5 years or more 5,324 4,836 4,636 4,777 4,481 4,486 4,682 4,723 4,862 4,717 4,618 4,734 Mortgage-backed securities 9 Pass-throughs 24,655 26,165 24,425 19,464 22,231 26,345 27,745 23,575 19,485 23,848 31,463 28,856 10 All others 9,373 10,184 10,940 9,939 10,492 10,439 10,835 10,863 12,693 12,647 12,569 11,432 Other money market instruments 11 Certificates of deposit 2,336 2,439 3,071 2,438 2,497 3,290 3,058 3,305 3,019 3,870 3,436 3,856 12 Commercial paper 6,315 5,982 5,008 6,529 5,856 5,042 4,474 5,129 4,613 4,471 5,145 5,534 13 Bankers' acceptances 1,509 1,515 1,400 1,570 1,245 1,477 1,510 1,375 1,312 1,339 1,035 1,315 FUTURE AND FORWARD5 By type of deliverable security U.S. Treasury securities 14 Bills -12,209 -18,953 -13,075 -21,409 -14,675 -11,880 -11,758 -12,801 -15,953 -16,984 -11,065 -8,782 Coupon securities 15 Maturing in less than 3.5 years -1,044 520 530 -144 326 686 544 466 598 1,173 1,303 2,059 16 Maturing in 3.5 to 7.5 years -1,688 -1,254 1,000 -1,767 -815 842 1,566 1,827 1,107 1,028 2,010 1,833 17 Maturing in 7.5 to 15 years -200 -433 703 -850 29 1,038 714 716 917 379 704 -341 18 Maturing in 15 years or more -6,577 -4,116 -2,160 -3,039 -2,470 -730 -1,468 -3,083 -3,869 -2,734 -2,198 -4,744 Federal agency securities Debt 19 Maturing in less than 3.5 years 42 187 312 160 -26 535 475 284 105 69 -97 52 20 Maturing in 3.5 to 7.5 years 158 11 -138 10 -11 -172 -189 -159 -112 -104 -30 -57 21 Maturing in 7.5 years or more -20 -6 -54 5 22 -90 -133 -17 -11 -65 -13 1 Mortgage-backed securities 22 Pass-throughs -11,134 -13,711 -15,368 -8,907 -10,441 -18,140 -19,419 -15,565 -9,245 -14,066 -20,373 -17,132 23 All others 1,588 752 1,309 175 1,014 589 1,524 2,377 689 425 -348 -69 Other money market instruments 24 Certificates of deposit 3,085 -18,609 -46,070 -35,842 -50,301 -53,650 -50,260 -37,646 -34,927 -28,104 -35,063 -41,109 25 Commercial paper n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 26 Bankers' acceptances n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Financing6 Reverse repurchase agreements 27 Overnight and continuing 184,273 190,522 182,725 178,150 186,023 189,701 188,649 175,447 168,763 188,649 118811,,885522 117722,,000000 28 Term 230,965 230,051 243,720 227,947 240,046 256,504 257,295 226,886 231,646 225,374 228,704 234,743 Repurchase agreements 29 Overnight and continuing 280,196 274,319 279,426 276,970 289,136 293,647 295,542 270,154 230,426 292,787 296,801 287,693 30 Term 201,866 213,240 221,285 210,103 211,261 223,345 224,131 211,854 241,730 194,144 199,269 206,740 Securities borrowed 31 Overnight and continuing 51,440 60,038 64,626 66,058 64,116 64,762 66,124 64,064 63,390 64,309 64,193 63,933 32 Term 20,621 19,025 23,069 18,743 19,738 22,126 22,543 26,064 24,564 23,917 23,078 22,534 Securities loaned 33 Overnight and continuing 6,538 7,062 7,096 6,723 7,133 6,889 7,202 7,525 6,478 7,038 7,807 7,619 34 Term 874 724 1,297 652 821 n.a. 949 2,926 881 828 1,464 873 Collateralized loans 35 Overnight and continuing 4,122 4,503 5,962 5,005 5,825 5,740 5,546 6,324 6,614 6,871 6,262 6,344 36 Term 1,967 2,023 2,195 2,008 2,237 2,100 2,146 2,232 2,329 2,005 1,681 2,039 MEMO: Matched book7 Reverse repurchases 37 Overnight and continuing 116,928 122,990 113,023 116,666 117,661 114,743 116,202 107,558 108,214 121,684 118,766 114,146 38 Term 192,791 189,072 203,627 190,907 202,181 214,468 213,218 191,150 191,511 191,736 187,696 190,618 Repurchases 39 Overnight and continuing 154,692 152,094 154,997 154,322 160,535 161,221 160,764 148,692 138,122 163,393 165,528 153,894 40 Term 153,202 163,869 164,351 161,785 158,762 169,004 170,524 158,046 163,427 145,982 147,563 157,906 1. Data for positions and financing are obtained from reports submitted to the Forward positions reflect agreements made in the over-the-counter market that Federal Reserve Bank of New York by the U.S. government securities dealers on specify delayed delivery. All futures positions are included regardless of time to its published list of primary dealers. Weekly figures are close-of-business Wednes- delivery. Forward contracts for U.S. Treasury securities and for federal agency day data; monthly figures are averages of weekly data. Data for positions and debt securities are included when the time to delivery is more than five business financing are averages of close-of-business Wednesday data. days. Forward contracts for mortgage-backed securities are included when the 2. Securities positions are reported at market value. time to delivery is more than thirty days. 3. Net immediate positions include securities purchased or sold (other than 6. Overnight financing refers to agreements made on one business day that mortgage-backed agency securities) that have been delivered or are scheduled to mature on the next business day; continuing contracts are agreements that remain be delivered in five business days or less and "when-issued" securities settle on in effect for more than one business day but have no specific maturity and can be the issue date of offering. Net immediate positions of mortgage-backed securities terminated without a requirement for advance notice by either party; term include securities purchased or sold that have been delivered or are scheduled to agreements have a fixed maturity of more than one business day. be delivered in thirty days or less. 7. Matched-book data reflect financial intermediation activity in which the 4. Includes securities such as collateralized mortgage obligations (CMOs), real borrowing and lending transactions are matched. Matched-book data are included estate mortgage investment conduits (REMICs), interest only (IOs), and principal in the financing breakdowns listed above. The reverse repurchase and repurchase only (POs). numbers are not always equal because of the "matching" of securities of different 5. Futures positions are standardized contracts arranged on an exchange. values or types of collateralization. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • October 1991 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1991 Agency 1987 1988 1989 1990 Jan. Feb. Mar. Apr. May 1 Federal and federally sponsored agencies 341,386 381,498 411,805 434,668 445,430 441,440 437,847 432,348 432,306 2 Federal agencies 37,981 35,668 35,664 42,159 42,141 42,191 41,149 41,107 41,031 3 Defense Department1 13 8 7 7 7 7 7 7 7 4 Export-Import Bank2' 11,978 11,033 10,985 11,376 11,376 11,376 11,186 11,186 11,186 5 Federal Housing Administration 183 150 328 393 329 361 370 365 407 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 Service 6,103 6,142 6,445 6,948 6,948 6,948 6,948 6,948 6,651 9 8 T U e n n it n e e d s s S e t e a t V es a l R le a y i lw A a u y th A or s i s ty o ciation6 18,08 0 9 18,33 0 5 17,8990 23,4350 23,4810 23,4990 22,6380 22,6010 22,7800 10 Federally sponsored agencies7 303,405 345,830 375,407 392,509 403,289 399,249 3%,698 391,241 391,275 11 Federal Home Loan Banks 115,727 135,836 136,108 117,895 115,402 112,874 113,311 110,691 108,981 12 Federal Home Loan Mortgage Corporation 17,645 22,797 26,148 30,941 33,157 32,640 31,425 29,768 29,016 13 Federal National Mortgage Association 97,057 105,459 116,064 123,403 125,849 125,974 124,885 124,189 126,806 14 Farm Credit Banks8 55,275 53,127 54,864 53,590 53,717 52,480 51,890 52,049 51,485 15 Student Loan Marketing Association9 16,503 22,073 28,705 34,194 35,736 35,854 35,761 35,117 35,560 16 Financing Corporation 1,200 5,850 8,170 8,170 8,170 8,170 8,170 8,170 8,170 17 Farm Credit Financial Assistance Corporation11 0 690 847 1,261 1,261 1,261 1,261 1,261 1,261 18 Resolution Funding Corporation12 0 0 4,522 23,055 29,9% 29,9% 29,9% 29,9% 29,9% MEMO 19 Federal Financing Bank debt" 152,417 142,850 134,873 179,083 181,062 181,714 181,907 182,708 182,582 Lending to federal and federally sponsored agencies 20 Export-Import Bank3 11,972 11,027 10,979 11,370 11,370 11,370 11,180 11,180 11,180 21 Postal Service6 5,853 5,892 6,195 6,698 6,698 6,698 6,698 6,698 6,401 22 Student Loan Marketing Association 4,940 4,910 4,880 4,850 4,850 4,850 4,850 4,850 4,850 2 2 3 4 T U e n n it n e e d s s S e t e a t V es a l R le a y i l A w u ay th A or s i s ty o ciation6 16,709 0 16,9505 16,5109 14,0505 14,1010 14,1109 13,2508 13,2201 13,4000 Other Lending14 25 Farmers Home Administration 59,674 58,4% 53,311 52,324 52,169 52,544 52,669 52,669 52,669 26 Rural Electrification Administration 21,191 19,246 19,265 18,890 18,906 18,906 18,904 18,850 18,878 27 Other 32,078 26,324 23,724 70,8% 72,968 73,227 74,348 75,240 75,204 1. Consists of mortgages assumed by the Defense Department between 1957 shown on line 22. and 1%3 under family housing and homeowners assistance programs. 10. The Financing Corporation, established in August 1987 to recapitalize the 2. Includes participation certificates reclassified as debt beginning Oct. 1,1976. Federal Savings and Loan Insurance Corporation, undertook its first borrowing in 3. On-budget after Sept. 30, 1976. October 1987. 4. Consists of debentures issued in payment of Federal Housing Administration 11. The Farm Credit Financial Assistance Corporation, established in January insurance claims. Once issued, these securities may be sold privately on the 1988 to provide assistance to the Farm Credit System, undertook its first securities market. borrowing in July 1988. 5. Certificates of participation issued before fiscal 1%9 by the Government 12. The Resolution Funding Corporation, established by the Financial Institu- National Mortgage Association acting as trustee for the Farmers Home Admin- tions Reform, Recovery, and Enforcement Act of 1989, undertook its first istration; Department of Health, Education, and Welfare; Department of Housing borrowing in October 1989. and Urban Development; Small Business Administration; and the Veterans 13. The FFB, which began operations in 1974, is authorized to purchase or sell Administration. obligations issued, sold, or guaranteed by other federal agencies. Since FFB 6. Off-budget. incurs debt solely for the purpose of lending to other agencies, its debt is not 7. Includes outstanding noncontingent liabilities: notes, bonds, and deben- included in the main portion of the table in order to avoid double counting. tures. Some data are estimated. 14. Includes FFB purchases of agency assets and guaranteed loans; the latter 8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, contain loans guaranteed by numerous agencies with the guarantees of any shown in line 17. particular agency being generally small. The Farmers Home Administration item 9. Before late 1982, the Association obtained financing through the Federal consists exclusively of agency assets, while the Rural Electrification Administra- Financing Bank (FFB). Borrowing excludes that obtained from the FFB, which is tion entry contains both agency assets and guaranteed loans. 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 Type of issue or issuer, 1989 or use Feb. Mar. Apr. May June July 1 All issues, new and refunding' 114,522 113,646 120,339 12,250 7,230 11,335 10,864 10,916 14,753 13,804 10,414 Type of issue 2 General obligation 30,312 35,774 39,610 3,536 2,343 4,838 4,219 3,771 4,946 4,442 3,350 3 Revenue 84,210 77,873 81,295 8,714 4,887 6,497 6,645 7,145 9,807' 9,362 7,064 Type of issuer 4 State 8,830 11,819 15,149 1,396 713 2,027 1,195 1,199 1,890 1,529 576 5 Special district and statutory authority2 74,409 71,022 72,661 7,032 4,563 4,903 6,599 6,604 9,549 5,057 3,322 6 Municipality, county, and township ... 31,193 30,805 32,510 3,822 1,954 4,405 3,070 3,113 3,314 7,218 6,516 7 Issues for new capital, total 79,665 84,062 103,235 10,707 6,977 10,403 9,675 10,156 13,924 13,347 10,354 Use of proceeds 8 Education 15,021 15,133 17,042 1,418 1,079 1,579 2,583 2,001 2,462 2,684 2,041 9 Transportation 6,825 6,870 11,650 2,008 711 146 421 1,305 1,642 1.829 434 10 Utilities and conservation 8,496 11,427 11,739 776 1,196 2,046 1,886 2,171 1,815 2.830 1,846 11 Social welfare 19,027 16,703 23,099 2,001 891 698 2,140 921 3,373 2,455 2,090 12 Industrial aid 5,624 5,036 6,117 933 607 768 554 319 743 1,040 411 13 Other purposes 24,672 28,894 34,607 3,571 2,493 4,775 2,091 3,439 3,889 2,509 3,532 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 Nov. Dec. Jan. Feb. Mar. Apr. May June 1 All issues' 410,898' 379,535' 339,551' 25,104' 21,150' 17,393' 30,873' 36,255' 33,908' 37,268' 30,718 2 Bonds2 353,097' 321,664' 299,313' 23,869' 19,361' 16,497' 29,071' 32,306' 28,595' 29,850' 25,100 Type of offering 202,215 181,393 189,271' 22,163' 18,685' 15,838' 25,902' 29,927' 24,738' 27,020' 22,800 44 PPrriivvaattee ppllaacceemmeenntt,, ddoommeessttiicc33 127,704' WlATff 86,988 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 55.. SSoolldd aabbrrooaadd 23,178 22,851 23,054 1,706 676 659 3,169 2,379 3,857 2,830' 2,300 IInndduussttrryy ggrroouupp 66 MMaannuuffaaccttuurriinngg 70,306 76,656' ss.no' 6,639' 2,887' 3,390' 8,116' 7,240' 7,613' 6,604' 3,877 62,794' 49,744' 40,019' 821 1,061 1,408 1,921' 1,739' 2,936' 1,19c 1,685 8888 TTTTrrrraaaannnnssssppppoooorrrrttttaaaattttiiiioooonnnn 10,275 10,032' 12,706' 457 351 711 563 985 502 665 567 9999 PPPPuuuubbbblllliiiicccc uuuuttttiiiilllliiiittttyyyy 20,834 18,688' 17,521' 2,209 2,082' 689 1,399 506 2,115' 2,682' 1,552 11110000 CCCCoooommmmmmmmuuuunnnniiiiccccaaaattttiiiioooonnnn 5,593 8,461 6,664' 693 1,380 97 669 998888 845 337 1,838 11111111 RRRReeeeaaaallll eeeessssttttaaaatttteeee aaaannnndddd ffffiiiinnnnaaaannnncccciiiiaaaallll 183,294 158,083' 169,287' 13,050 11,601 10,203 16,404 2200,,884499'' 14,585' 18,373' 15,581 12 Stocks2 57,802 57,870 n.a. 1,235 1,789 896 1,802 3,949 5,313 7,418 5,618 TTyyppee ooff ooffffeerriinngg 1133 PPuubblliicc pprreeffeerrrreedd 6,544 6,194 3,997 265 175 0 150 1,233 543 1,392 1,731 35,911 26,030 19,443 970 1,614 8% 1,652 2,716 4,771 6,027 3,887 15 Private placement 15,346 25,647 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. IInndduussttrryy ggrroouupp 1166 MMaannuuffaaccttuurriinngg 7,608 9,308 3,130 154 46 60 183 564 1,796 2,291 1,909 8,449 7,446 5,279 42 110 18 546 1,096 1,521 1,563 851 1188 TTrraannssppoorrttaattiioonn 1,535 1,929 126 0 5 242 0 249 416 277 0 1199 PPuubblliicc uuttiilliittyy 1,898 3,090 3,309 462 288 218 335 354 71 573 471 515 1,904 416 0 6 n.a. 0 0 0 0 295 21 Real estate and financial 37,798 34,028 11,169 574 1,327 359 737 1,686 1,510 2,714 2,091 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 the 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 • October 1991 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Asset Position Millions of dollars 1990 1991 IINNVVEESSTTMMEENNTT CCOOMMPPAANNIIEESS11 11998899 11999900 Nov. Dec. Jan. Feb. Mar. Apr. Mayr June 1 Sales of own shares2 306,445 345,780 25,583 34,553 38,012 30,605 31,597 40,356 36,719 33,877 272,165 289,573 22,085 29,484 27,648 23,390 25,372 32,895 26,972 27,617 3 Net sales 34,280 56,207 3,498 5,069 10,364 7,215 6,226 7,461 9,747 6,260 4 Assets4 553,871 570,744 557,676 570,744 590,2% 616,472 632,052 647,053 671,852 660,466 44,780 48,638 52,829 48,638 53,549 53,899 52,895 52,982 55,450 55,069 6 Other 509,091 522,106 504,847 522,106 536,747 562,573 579,154 594,071 616,402 605,397 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. Treasury 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- SOURCE. Investment Company Institute. Data based on reports of members, ment of capital gains distributions and share issue of conversions from one fund which comprise substantially all open-end investment companies registered with to another in the same group. the Securities and Exchange Commission. Data reflect newly formed companies 3. Excludes share redemptions resulting from conversions from one fund to after 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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1 Corporate profits with inventory valuation and 337.6 311.6 298.3 306.7 290.9 296.8 306.6 300.7 288.9 286.2 287.9 316.7 307.7 304.7 291.4 289.8 296.9 299.3 318.5 304.1 281.5 283.6 136.2 135.1 132.1 127.8 123.5 129.9 133.1 139.1 126.5 115.1 119.9 180.5 172.6 172.5 163.6 166.3 167.1 166.1 179.4 177.6 166.4 163.7 110.0 123.5 133.9 125.0 127.7 130.3 133.0 135.1 137.2 137.5 136.4 70.5 49.1 38.7 38.6 38.6 36.8 33.2 44.3 40.4 29.0 27.3 -27.0 -21.7 -11.4 -6.1 -14.5 -11.4 -.5 -19.8 -13.8 8.1 4.1 47.8 25.5 4.9 21.4 15.6 11.3 7.7 2.0 -1.4 -3.5 .3 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 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1 Total nonfarm business 507.40 532.% 547.23 519.58 532.45 535.49 534.86 529.02 535.32 544.16 553.52 Manufacturing 2 Durable goods industries 82.56 82.99 80.06 83.41 86.35 84.34 82.67 78.62 81.53 81.53 79.71 3 Nondurable goods industries 101.24 109.79 110.11 108.47 105.02 110.82 111.81 111.52 108.58 109.58 111.74 Nonmanufacturing 4 Mining 9.21 9.87 9.88 9.38 9.58 9.84 9.98 10.09 9.85 10.05 9.96 Transportation 5 Railroad 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 8 Electric 44.81 43.98 45.92 44.66 43.37 42.62 43.63 46.31 43.21 47.10 46.16 9 Gas and other 21.47 23.02 23.45 21.15 22.34 21.65 23.85 24.22 24.18 22.65 23.34 10 Commercial and other2 229.28 241.72 253.48 234.25 243.66 244.37 241.51 237.32 244.39 248.00 257.22 1. Anticipated by business. insurance; personal and business services; and communication. 2. "Other" consists of construction; wholesale and retail trade; finance and 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 1991 AAccccoouunntt 11998877 11998888 11998899 Q3 Q4 Q1 Q2 Q3 Q4 Qr ASSETS Accounts receivable, gross2 141.1 146.2 140.8 146.3 140.8 137.9 138.6 140.9 136.0' 131.6 207.4 236.5 256.0 246.8 256.0 262.9 274.8 275.4 290.8' 290.0 39.5 43.5 48.9 48.7 48.9 52.1 55.4 57.7 59.9 57.3 388.1 426.2 445.8 441.8 445.8 452.8 468.8 474.0 486.7' 478.9 Less: 45.3 50.0 52.0 52.9 52.0 51.9 54.3 55.1 56.6r 57.0 6.8 7.3 7.7 7.7 7.7 7.9 8.2 8.6 9.2' 10.3 336.0 368.9 386.1 381.3 386.1 393.0 406.3 410.3 420.9 411.6 8 All other 58.3 72.4 91.6 85.2 91.6 92.5 95.5 102.8 99.6 103.4 339944..22 441.3 477.6 466.4 477.6 485.5 501.9 513.1 520.6 515.0 LIABILITIES AND CAPITAL 16.4 15.4 14.5 12.2 14.5 13.9 15.8 15.6 19.4 22.0 128.4 142.0 149.5 147.2 149.5 152.9 152.4 148.6 152.7 141.2 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. n.a. 50.6 63.8 60.3 63.8 70.5 72.8 82.0 82.7' 77.8 137.9 147.8 145.1 147.8 145.7 153.0 156.6 157.0 162.4 52.8 59.8 62.6 61.8 62.6 61.7 66.1 68.7 66.(K 68.0 3311..55 3355..66 3399..44 39.8 39.4 40.7 41.8 41.6 42.8 43.7 339944..22 441.3 477.6 466.4 477.6 485.5 501.9 513.1 520.6 515.0 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, end of period, seasonally adjusted 1991 Type 1988 Jan. Feb. Mar. Apr. May 1 Total 234,891 258,957 292,638 293,383 294,284 294,225 294,569 297,171 Retail financing of installment sales 2 Automotive 37,210 39,479 38,110 38,016 37,548 36,649 36,652 36,005 3 Equipment 28,185 29,627 31,784 31,956 32,058 32,332 32,034 32,690 4 Pools of securitized assets2 n.a. 698 951 911 879 828 777 737 Wholesale 5 Automotive 32,953 33,814 32,283 32,404 31,428 30,329 30,066 30,055 6 Equipment 5,971 6,928 11,569 11,299 11,108 10,880 10,937 11,000 7 All other 9,357 9,985 9,126 9,366 9,142 8,666 8,620 8 Pools of securitized assets n.a. 0 2,950 2,836 3,353 3,354 2,905 2,855 Leasing 9 Automotive 24,693 26,804 39,129 38,921 38,922 39,279 39,707 40,738 10 Equipment 57,658 68,240 75,626 76,841 79,052 80,969 82,750 84,126 11 Pools of securitized assets2 1,247 1,849 1,854 1,810 1,868 1,765 1,700 12 Loans on commercial accounts receivable and factored commercial accounts receivable 17,687 18,511 22,475 21,891 22,084 21,666 21,265 21,772 13 All other business credit 21,176 23,623 26,784 27,089 26,899 27,204 27,045 26,873 Net change (during period) 14 Total 28,900 24,067 33,681 745 901 -59 345 2,602' 1,057 Retail financing of installment sales 15 Automotive 1,070 2,267 -1,369 -94 -468 -900 4 -647 -615 16 Equipment 3,108 1,442 2,157 171 103 274 -298 656 -501 17 Pools of securitized assets n.a. -26 253 -40 -32 -51 -51 -40 -30 Wholesale 18 Automotive 2,883 862 -1,531 121 -975 -1,100 -263 -11 -750 19 Equipment 393 958 4,641 -270 -192 -228 57 63 -573 20 All other 1,029 628 -860 240 -224 -275 -201 -46' 231 21 Pools of securitized assets2 n.a. 0 2,950 -114 517 1 -449 -50 -50 Leasing 22 Automotive 2,596 2,110 12,326 -209 1 358 428 1,031 865 23 Equipment 14,166 10,581 7,385 1,215 2,211 1,917 1,781 1,376' -165 24 Pools of securitized assets2 n.a. 526 602 5 -44 58 -103 -65 25 25 Loans on commercial accounts receivable and factored commercial accounts receivable -484 826 3,964 -585 194 -418 -401 507' 2,268 26 All other business credit 4,134 3,163 3,163 305 -190 305 -158 -172' 352 Digitized for FRASER 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. http://fraser.sitnlsoiduei sfrfoendt .coorvge/r. Federal Reserve Bank of St. Louis

A36 Domestic Nonfinancial Statistics • October 1991 1.53 MORTGAGE MARKETS Conventional Mortgages on New Homes Millions of dollars; exceptions noted. 1991 IItteemm Jan. Feb. Mar. Apr. May June July Terms and yields in primary and secondary markets PRIMARY MARKETS Terms1 1 Purchase price (thousands of dollars) 150.0 159.6 153.2 148.3 153.2 136.7 151.4 146.8 166.7 165.1 2 Amount of loan (thousands of dollars) 110.5 117.0 112.4 112.3 113.8 100.4 114.5 109.2 121.9 121.6 3 Loan-price ratio (percent) 75.5 74.5 74.8 77.2 76.3 74.6 76.4 75.2 74.2 75.0 4 Maturity (years) 28.0 28.1 27.3 28.1 28.3 25.7 26.8 26.1 26.8 27.0 5 Fees and charges (percent of loan amount)2 2.19 2.06 1.93 1.75 1.73 1.59 2.12 1.54 1.69 1.85 6 Contract rate (percent per year) 8.81 9.76 9.68 9.36 9.28 9.16 9.24 9.26 9.18 9.12 Yield (percent per year) 7 OTS series3 9.18 10.11 10.01 9.65 99..5577 9.43 9.60 99..5522 99..4466 99..4433 8 HUD series4 10.30 10.21 10.08 9.53 9.49 9.49 9.51 9.46 9.60 9.46 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (HUD series)5 10.49 10.24 10.17 9.58 9.57 9.61 9.61 9.62 9.71 9.59 10 GNMA securities6 9.83 9.71 9.51 8.87 8.66 8.78r 8.62 8.65 9.04 8.93 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 101,329 104,974 113,329 117,445 118,284 119,196 120,074 121,798 122,806 123,770 12 FHA/V A-insured 19,762 19,640 21,028 21,854 21,947 21,976 21,972 21,609 21,474 21,511 13 Conventional 81,567 85,335 92,302 95,591 96,337 97,220 98,102 100,189 101,332 102,259 Mortgage transactions (during period) 14 Purchases 23,110 22,518 23,959 1,781 1,792 1,987 2,942 4,450 3,145 3,183 Mortgage commitments7 15 Issued (during period)8 n.a. n.a. n.a. 1,889 1,779 3,087 3,880 3,506 3,032 22,,997755 16 To sell (during period)9 n.a. n.a. n.a. 2 0 109 839 1,066 841 1,374 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)9 17 Total 15,105 20,105 20,419 22,300 2222,,885555 23,221 23,870 24,525 n.a. n.a. 18 FHA/V A-insured 620 590 547 511 503 499 504 491 n.a. n.a. 19 Conventional 14,485 19,516 19,871 21,789 22,352 22,722 21,188 21,843 n.a. n.a. Mortgage transactions (during period) 20 Purchases 44,077 78,588 75,517 5,018 5,217 4,549 7,045 8,562 n.a. n.a. 21 Sales 39,780 73,446 73,817 4,438 4,549 6,183 6,226 7,692 10,789 8,053 Mortgage commitments10 22 Contracted (during period) 66,026 88,519 102,401 8,437 5,579 5,936 10,036 11,334 n.a. n.a. 1. Weighted averages based on sample surveys of mortgages originated by backed by mortgages and guaranteed by the Government National Mortgage major institutional lender groups; compiled by the Federal Housing Finance Association, assuming prepayment in twelve years on pools of thirty-year Board in cooperation with the Federal Deposit Insurance Corporation. mortgages insured by the Federal Housing Administration or guaranteed by the 2. Includes all fees, commissions, discounts, and "points" paid (by the Department of Veterans Affairs carrying the prevailing ceiling rate. Monthly borrower or the seller) to obtain a loan. figures are averages of Friday figures from the Wall Street Journal. 3. Average effective interest rates on loans closed, assuming prepayment at 7. Includes some multifamily and nonprofit hospital loan commitments in the end of 10 years. addition to one- to four-family loan commitments accepted in FNMA's free 4. Average contract rates on new commitments for conventional first mort- market auction system, and through the FNMA-GNMA tandem plans. gages; from U.S. Department of Housing and Urban Development. 8. Does not include standby commitments issued, but includes standby 5. Average gross yields on thirty-year, minimum-downpayment, first mort- commitments converted. gages, insured by the Federal Housing Administration for immediate delivery in 9. Includes participation as well as whole loans. the private secondary market. Based on transactions on first day of subsequent 10. Includes conventional and government-underwritten loans. Federal Home month. Large monthly movements in average yields may reflect market adjust- Loan Mortgage Corporation (FHLMC's) mortgage commitments and mortgage ments to changes in maximum permissable contract rates. transactions include activity under mortgage securities swap programs, while the 6. Average net yields to investors on fully modified pass-through securities corresponding data for FNMA exclude swap activity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Real Estate A37 1.54 MORTGAGE DEBT OUTSTANDING' Millions of dollars, end of period 1990 1991 Type of holder and of property 11998877 11998888 11998899 Q1 Q2 Q3 Q4 Ql" 1 All holders 2,986,425 3,270,118 3,556,370 3,696,882 3,760,480 3,815,220 3,856,205 3,883,700 2 One- to four-family 1,962,958 2,201,231 2,429,689 2,554,496 2,619,522 2,669,613 2,708,951 2,740,122 3 Multifamily 278,899 291,405 303,416 305,838 301,789 302,993 304,004 303,543 4 Commercial 657,036 692,236 739,240 752,688 755,212 758,362 759,306 756,349 5 Farm 87,532 85,247 84,025 83,861 83,957 84,252 83,943 83,686 6 Major financial institutions 1,665,291 1,831,472 1,931,537 1,939,005 1,940,366 1,932,978 1,912,099 1,890,344 7 Commercial banks2 592,449 674,003 767,069 786,802 814,598 830,868 843,136 855,256 8 One- to four-family 275,613 334,367 389,632 405,009 431,115 445,218 454,851 462,975 9 Multifamily 32,756 33,912 38,876 37,913 38,420 37,898 37,116 38,021 10 Commercial 269,648 290,254 321,906 327,110 327,930 330,426 333,943 336,803 11 Farm 14,432 15,470 16,656 16,771 17,133 17,326 17,225 17,457 12 Savings institutions3 860,467 924,606 910,254 891,921 860,903 836,047 801,628 771,948 13 One- to four-family 602,408 671,722 669,220 658,405 642,110 626,297 600,154 584,639 14 Multifamily 106,359 110,775 106,014 103,841 97,359 94,790 91,806 85,654 15 Commercial 150,943 141,433 134,370 129,056 120,866 114,430 109,168 101,187 16 Farm 757 676 650 619 568 530 500 468 17 Life insurance companies 212,375 232,863 254,214 260,282 264,865 266,063 267,335 263,139 18 One- to four-family 13,226 11,164 12,231 12,525 12,740 12,773 12,052 11,514 19 Multifamily 22,524 24,560 26,907 27,555 28,027 28,100 29,406 28,847 20 Commercial 166,722 187,549 205,472 210,422 214,024 214,585 215,121 212,018 21 Farm 9,903 9,590 9,604 9,780 10,075 10,605 10,756 10,760 22 Finance companies 29,716 37,846 45,476 45,808 47,104 49,784 48,777 49,658 23 Federal and related agencies 192,721 200,570 209,498 216,146 227,818 242,695 250,762 262,167 24 Government National Mortgage Association.. 444 26 23 22 21 21 21 20 25 One- to four-family 25 26 23 22 21 21 21 20 26 Multifamily 419 0 0 0 0 0 0 0 27 Farmers Home Administration5 43,051 42,018 41,176 41,125 41,175 41,269 41,439 41,545 28 One- to four-family 18,169 18,347 18,422 18,419 18,434 18,476 18,527 18,578 29 Multifamily 8,044 8,513 9,054 9,199 9,361 9,477 9,640 9,792 30 Commercial 6,603 5,343 4,443 4,510 4,545 4,608 4,690 4,754 31 Farm 10,235 9,815 9,257 8,997 8,835 8,708 8,582 8,421 32 Federal Housing and Veterans Administration 5,574 5,973 6,087 6,355 6,792 7,938 8,801 9,492 33 One- to four-family 2,557 2,672 2,875 3,027 3,054 3,248 3,593 3,600 34 Multifamily 3,017 3,301 3,212 3,328 3,738 4,690 5,208 5,891 35 Federal National Mortgage Association 96,649 103,013 110,721 112,353 112,855 113,718 116,628 118,210 36 One- to four-family 89,666 95,833 102,295 103,300 103,431 103,722 106,081 107,053 37 Multifamily 6,983 7,180 8,426 9,053 9,424 9,9% 10,547 11,157 38 Federal Land Banks 34,131 32,115 29,640 29,325 29,595 29,441 29,416 29,253 39 One- to four-family 2,008 1,890 1,210 1,197 1,741 1,766 1,838 1,884 40 Farm 32,123 30,225 28,430 28,128 27,854 27,675 27,577 27,368 41 Federal Home Loan Mortgage Corporation .. 12,872 17,425 21,851 19,823 19,979 20,508 21,857 21,947 42 One- to four-family 11,430 15,077 18,248 16,772 17,316 17,810 19,185 19,460 43 Multifamily 1,442 2,348 3,603 3,051 2,663 2,697 2,672 2,487 44 Mortgage pools or trusts6 718,297 811,847 946,766 984,811 1,024,893 1,060,640 1,103,950 1,138,889 45 Government National Mortgage Association.. 317,555 340,527 368,367 376,962 385,456 394,859 403,613 412,982 46 One- to four-family 309,806 331,257 358,142 366,300 374,960 384,474 391,505 400,322 47 Multifamily 7,749 9,270 10,225 10,662 10,496 10,385 12,108 12,660 48 Federal Home Loan Mortgage Corporation .. 212,634 226,406 272,870 281,736 295,340 301,797 316,359 328,305 49 One- to four-family 205,977 219,988 266,060 274,084 287,232 293,721 308,369 319,978 50 Multifamily 6,657 6,418 6,810 7,652 8,108 8,077 7,990 8,327 51 Federal National Mortgage Association 139,960 178,250 228,232 246,391 263,330 281,806 299,833 312,101 52 One- to four-family 137,988 172,331 219,577 237,916 254,811 273,335 291,194 303,554 53 Multifamily 1,972 5,919 8,655 8,475 8,519 8,471 8,639 8,547 54 Farmers Home Administration 245 104 80 76 72 70 66 63 55 One- to four-family 121 26 21 20 19 18 17 16 56 Multifamily 0 0 0 0 0 0 0 0 57 Commercial 63 38 26 25 24 24 24 23 58 Farm 61 40 33 31 30 29 26 24 59 Individuals and others7 410,116 426,229 468,569 556,920 567,403 578,908 589,395 592,301 60 One- to four-family 246,061 259,971 294,517 374,143 382,343 393,027 401,685 403,791 61 Multifamily 80,977 79,209 81,634 83,666 82,040 80,636 80,808 80,448 62 Commercial 63,057 67,618 73,023 79,576 83,557 85,865 87,624 88,875 63 Farm 20,021 19,431 19,395 19,536 19,463 19,379 19,278 19,187 1. Based on data from various institutional and governmental sources, with 5. Securities guaranteed by the Farmers Home Administration sold to the figures for some quarters estimated in part by the Federal Reserve. Multifamily Federal Financing Bank were reallocated from FmHA mortgage pools to FmHA debt refers to loans on structures of five or more units. mortgage holdings in 1986:4, because of accounting changes by the Farmers 2. Includes loans held by nondeposit trust companies but not bank trust Home Administration. departments. 6. Outstanding principal balances of mortgage-backed securities insured or 3. Includes savings banks and savings and loan associations. Beginning 1987:1, guaranteed by the agency indicated. Includes private pools which are not shown data reported by FSLIC-insured institutions include loans in process and other 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 one- to four-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 • October 1991 1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding and Net Change Millions of dollars, amounts outstanding, end of period 1990 1991 HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt Oct. Nov. Dec. Jan. Feb. Mar. Apr. May' June Seasonally adjusted 1 Total 718,863 735,102 735,433 736,411 735,102 732,962 732,762 732,442 733,621 732,289 730,460 2 Automobile 290,676 284,585 285,024 284,412 284,585 283,746 282,626 280,689 279,746 276,494 274,141 3 Revolving 199,082 220,110 220,031 221,690 220,110 219,588 221,556 224,817 225,994 227,301 227,726 4 Mobile home 22,471 20,919 20,680 20,492 20,919 20,459 20,200 20,123 20,098 19,7% 19,939 5 Other 206,633 209,487 209,698 209,817 209,487 209,170 208,379 206,813 207,782 208,697 208,654 Not seasonally adjusted 6 Total 730,901 748,300 736,091 738,626 748,300 736,399 729,264 725,462 727,907 727,717 727,890 By major holder 7 Commercial banks 342,770 347,466 341,755 342,882 347,466 341,426 339,282 335,754 336,425 334,746 333,367 8 Finance companies 140,832 137,450 141,329 139,195 137,450 134,965 133,021 131,552 133,462 134,045 133,903 9 Credit unions 93,114 92,911 93,190 92,918 92,911 91,991 91,131 90,772 91,413 91,549 91,600 10 Retailers 44,154 43,552 38,282 39,095 43,552 40,945 38,864 38,497 37,817 36,782 36,702 11 Savings institutions 57,253 45,616 48,055 47,121 45,616 44,939 43,875 42,491 41,707 40,764 40,109 12 Gasoline companies 3,935 4,822 4,749 4,753 4,822 4,766 4,404 4,2% 4,357 4,507 4,591 13 Pools of securitized assets2 48,843 76,483 68,731 72,662 76,483 77,367 78,687 82,100 82,726 85,324 87,618 By major type of credit3 14 Automobile 290,705 284,813 287,304 285,379 284,813 282,214 279,913 277,798 277,508 275,582 274,662 15 Commercial banks 126,288 126,259 127,667 126,544 12$,259 126,235 124,745 123,411 122,710 121,631 121,361 16 Finance companies 82,721 74,3% 78,033 75,224 74,3% 72,015 70,287 69,233 70,500 69,689 70,304 17 Pools of securitized assets2 18,235 24,537 20,944 23,475 24,537 25,123 26,872 27,755 26,875 27,085 26,039 18 Revolving 210,310 232,370 218,337 222,643 232,370 223,606 220,714 221,400 222,627 224,301 225,585 19 Commercial banks 130,811 132,433 127,108 129,117 132,433 125,814 125,673 124,619 126,009 126,047 124,069 20 Retailers 39,583 39,029 33,867 34,657 39,029 36,510 34,509 34,179 33,513 32,458 32,381 21 Gasoline companies 3,935 4,822 4,749 4,753 4,822 4,766 4,404 4,2% 4,357 4,507 4,591 22 Pools of securitized assets2 23,477 44,335 40,798 42,297 44,335 44,773 44,451 46,722 47,116 49,667 52,897 23 Mobile home 22,240 20,666 20,773 20,472 20,666 20,614 20,362 20,030 20,052 19,721 19,907 24 Commercial banks 9,112 9,763 9,274 9,199 9,763 9,748 9,730 9,632 9,565 9,386 9,652 25 Finance companies 4,716 5,252 5,400 5,364 5,252 5,367 5,330 5,328 5,573 5,595 5,652 26 Other 207,646 210,451 209,677 210,132 210,451 209,%5 208,275 206,234 207,720 208,113 207,736 27 Commercial banks 76,559 79,011 77,706 78,022 79,011 79,629 79,134 78,092 78,141 77,682 78,285 28 Finance companies 53,395 57,801 57,8% 58,607 57,801 57,583 57,404 56,991 57,388 58,761 57,947 29 Retailers 4,571 4,523 4,415 4,438 4,523 4,435 4,355 4,318 4,304 4,324 4,321 30 Pools of securitized assets2 7,131 7,611 6,989 6,890 7,611 7,471 7,364 7,603 8,735 8,572 8,682 1. The Board's series on amounts of credit covers most short- and intermedi- 2. Outstanding balances of pools upon which securities have been issued; these ate-term credit extended to individuals that is scheduled to be repaid (or has the balances are no longer carried on the balance sheets of the loan originator. option of repayment) in two or more installments. 3. Totals includc 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 per year unless noted otherwise 1990 1991 IItteemm 11998888 11998899 11999900 Dec. Jan. Feb. Mar. Apr. May June INTEREST RATES Commercial bankJ 1 48-month new car 10.85 12.07 11.78 n.a. n.a. 11.60 n.a. n.a. 11.28 n.a. 2 24-month personal ^ 14.68 15.44 15.46 n.a. n.a. 15.42 n.a. n.a. 15.16 n.a. 3 120-month mobile home3 13.54 14.11 14.02 n.a. n.a. 13.88 n.a. n.a. 13.80 n.a. 4 Credit card 17.78 18.02 18.17 n.a. n.a. 18.28 n.a. n.a. 18.22 n.a. Auto finance companies 5 New car 12.60 12.62 12.54 12.86 12.99 13.16 13.14 13.14 1122..9955 1122..7777 6 Used car 15.11 16.18 15.99 16.04 15.70 15.90 15.82 15.82 15.85 15.74 OTHER TERMS4 Maturity (months) 7 New car 56.2 54.2 54.6 54.7 54.9 55.2 55.2 55.4 5555..55 5555..55 8 Used car 46.7 46.6 46.1 45.8 47.4 47.1 47.2 47.3 47.3 47.3 Loan-to-value ratio 9 New car 94 91 87 85 88 88 87 87 87 88 10 Used car 98 97 95 94 96 96 97 97 % 97 Amount financed (dollars) 11 New car 11,663 12,001 12,071 12,140 12,229 12,081 12,121 11,993 1122,,220044 12,343 12 Used car 7,824 7,954 8,289 8,530 8,600 8,605 8,763 8,751 8,873 8,916 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 Financial Statistics • October 1991 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1989 1990 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 621.9 542.1 603.3 526.6 368.7 504.9 435.2 561.6 389.4 369.6 154.2 270.0 By instrument 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 By borrowing sector 19 State and local government 36.2 48.8 45.6 29.6 14.6 28.6 16.5 8.9 17.7 28.5 3.1 7.1 20 Household 293.0 302.2 314.9 285.0 254.3 290.8 291.8 364.7 271.5 221.7 159.4 192.6 21 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 22 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 23 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 24 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 25 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 26 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 27 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 28 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 29 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 30 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 31 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 32 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 33 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 34 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 35 Loans from U.S. government -.4 -.8 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 36 Private 131.0 128.4 127.8 54.5 35.6 -.9 30.9 19.7 -6.5 36.2 93.0 -52.9 37 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 38 Mortgages .1 .4 .3 .0 .8 .3 -.4 -.7 .8 2.6 .5 1.0 39 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 40 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 41 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 borrowing sector 42 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 43 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 44 Private 131.0 128.4 127.8 54.5 35.6 -.9 30.9 19.7 -6.5 36.2 93.0 -52.9 45 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 46 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 47 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 48 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 49 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 50 Real estate investment trusts (REITs) .8 .3 3.5 -1.9 -.4 -3.1 .1 -.6 -2.3 .9 .6 .4 51 Securitized credit obligations (SCO) 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 1990 1991 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998866 11998877 11998899 11999900 Q3 Q4 Q1 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 240J 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 nonfinancial 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 Nonfinancial 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 • October 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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 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 2 Total net advances by federal agencies and foreign sectors 280.2 248.8 210.7 187.6 261.0 218.3 203.8 218.6 300.6 324.8 200.0 304.5 By instrument 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 Federal Home Loan Bank 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 By lender 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 and mortgage pools 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 authority 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 13 Total private domestic funds advanced 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.! 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 20 Total credit market funds advanced by private financial institutions 730.0 528.4 562.3 511.1 421.6 353.9 561.9 449.2 257.8 419.4 560.2 149.4 By lending institutions 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 86.9 246.8 246.3 170.0 374.5 156.8 115.3 257.0 456.1 71.7 By sources of funds 25 Pnvate domestic deposits and repurchase agreements ... 277.1 162.8 229.2 225.2 58.3 284.4 208.0 125.0 20.4 77.8 10.1 231.4 26 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 27 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 28 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 29 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 30 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 31 Other, net 187.3 63.9 11.0 104.2 116.1 -22.7 144.7 107.1 31.2 3.8 322.1 -131.6 Private domestic nonfinancial investors 32 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 33 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 34 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 35 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 36 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 37 Other loans and mortgages 51.7 27.6 32.2 27.1 21.9 16.4 30.1 33.5 23.0 40.9 -9.8 36.7 38 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 39 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 40 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 41 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 42 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 43 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 44 Security repurchase agreements 20.2 21.6 32.9 14.9 -14.5 13.7 -19.2 -34.9 22.3 -25.2 -20.1 -42.2 45 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 46 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 MEMO 47 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 48 Private financial intermediation (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 49 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 Corporate equities not included above 50 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 51 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 52 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 53 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 54 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. 30. Excludes net investment of these reserves in corporate equities. 1. Line 1 of table 1.57. 31. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 7-10. 32. Line 13 less line 20 plus line 26. 6. Includes farm and commercial mortgages. 33-37. 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 37 includes mortgages. issues of federally related mortgage pool securities. 39. Mainly an offset to line 9. 13. Line 1 less line 2 plus line 11 and 12. Also line 20 less line 26 plus line 32. 46. Sum of lines 32 plus 38, or line 13 less line 27 plus lines 39 and 45. Also sum of lines 28 and 47 less lines 40 and 46. 47. Line 2 divided by line 1. 18. Includes farm and commercial mortgages. 48. Line 20 divided by line 13. 25. Line 38 less lines 39 and 45. 49. Sum of lines 10 and 28. 26. Excludes equity issues and investment company shares. Includes line 19. 50. 52. Includes issues by financial institutions. 28. 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 institutions in foreign banks. and Statistics, Board of Governors of the Federal Reserve System, Washington, Digitized for F2R9.A DSeEmRan d deposits and note balances at commercial banks. D.C. 20551. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A43 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING Billions of dollars; period-end levels. 1989 1990 1991 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998866 11998877 11998888 11998899 Q3 Q4 Ql Q2 Q3 Q4 Ql Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 7,646.3 8,343.9 9,096.0 9,805.2 9,605.1 9,805.2 10,075.7 10,234.4 10,393.9 10,560.2 10,634.2 By sector and instrument 2 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 2,568.9 2,624.7 3 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 By instrument 5 Private 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 12 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 15 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 By borrowing sector 19 State and local government 510.1 558.9 604.5 634.1 629.9 634.1 634.3 637.6 647)8 648.7 648.6 20 Household 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 21 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 22 Farm 156.6 145.5 137.6 139.2 139.2 139.2 137.3 138.7 141.6 140.5 139.4 23 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 24 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 25 Foreign credit market debt held in United States 238.3 244.6 253.9 261.5 257.7 261.5 261.8 273.1 283.4 293.7 296.3 26 Bonds 74.9 82.3 89.2 94.5 94.2 94.5 103.3 108.4 108.9 116.1 118.9 27 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 28 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 29 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 30 Total credit market debt owed by nonfinancial sectors, domestic and 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 31 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 2,448.8 2,527.7 2,543.2 By instrument 32 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 1,455.3 33 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 34 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 35 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 36 Private 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 37 Corporate bonds 287.4 366.3 418.0 482.7 472.7 482.7 491.7 509.4 514.4 533.6 542.5 38 Mortgages 2.7 3.1 3.4 3.4 3.5 3.4 3.2 3.5 4.1 4.2 4.5 39 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 40 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 41 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 By borrowing sector 42 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 43 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 44 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 45 Commercial banks 75.6 81.8 78.8 77.4 77.0 77.4 73.4 73.3 70.7 76.3 68.1 46 Bank affiliates 116.8 131.1 136.2 142.5 144.0 142.5 142.0 134.3 122.9 114.4 109.2 47 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 48 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 49 Finance companies 328.1 378.8 446.1 496.2 481.2 496.2 499.1 509.8 530.9 552.1 547.2 50 Real estate investment trusts (REITs) 6.5 7.3 11.4 10.1 10.0 10.1 10.1 9.8 10.2 10.6 10.9 51 Securitized credit obligations issuers (SCO).. 64.0 103.1 135.7 184.4 174.9 184.4 193.1 206.9 213.8 225.2 233.2 All sectors 52 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 53 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 54 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 55 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 56 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 57 Consumer credit 659.8 693.2 743.5 790.6 771.0 790.6 782.3 789.4 798.7 808.9 782.3 58 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 59 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 60 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 • October 1991 1.60 SUMMARY OF CREDIT MARKET CLAIMS, BY HOLDER Billions of dollars, except as noted; period-end levels. 1989 1990 1991 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11998866 11998877 11998888 11998899 Q3 Q4 Q1 Q2 Q3 Q4 Q1 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 2 Total held by federal agencies and foreign sector 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 By instrument 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 Federal Home Loan Bank 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 By type of lender 7 U.S. government 255.3 240.0 217.6 207.1 207.8 207.1 217.3 222277..00 224422..11 224400..00 224488..66 8 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 9 Monetary authority 205.5 230.1 240.6 233.3 227.6 233.3 224.4 237.8 240.8 241.4 247.3 10 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 11 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 11,,336677..99 1,418.4 11,,445555..33 12 Foreign 238.3 244.6 253.9 261.5 257.7 261.5 261.8 273.1 283.4 293.7 2%. 3 13 Total private domestic 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 14 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 15 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 16 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 17 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 18 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 19 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 70 Total 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 By holding institutions 71 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 22,,775500..66 22,,777766..66 22,,778833..00 77 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 73 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 24 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 By sources of funds 25 Private domestic deposits and repurchase agreements 3,199.0 3,354.2 3,599.1 3,824.3 3,742.5 3,824.3 3,849.6 3,836.4 33,,884488..22 3,882.5 33,,993355..00 76 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 77 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 78 Foreign funds 18.6 62.3 71.5 61.6 55.0 61.6 63.4 66.4 94.0 97.3 95.6 79 Treasury balances 27.5 21.6 29.0 25.6 30.3 25.6 16.7 32.1 36.6 30.9 26.3 30 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 31 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 37 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 33 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 34 State and local obligations 212.6 274.4 340.9 369.3 363.1 369.3 362.3 368.3 372.1 368.8 360.6 35 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 36 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 37 Other loans and mortgages 320.1 350.4 374.4 412.1 396.8 412.1 414.5 422.6 428.9 435.9 436.2 38 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 39 Currency 186.3 205.4 220.1 231.8 224.4 231.8 234.4 242.7 247.2 254.4 261.9 40 Checkable deposits 516.6 515.4 527.2 528.7 486.1 528.7 504.5 510.1 500.2 529.9 511.8 41 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 47 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 43 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 44 Security repurchase agreements 128.5 150.1 182.9 197.9 200.9 197.9 188.3 192.5 186.6 183.4 172.0 45 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 46 Total of credit market instruments, deposits, and 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 MEMO 47 Public holdings as percent of total 22.6 23.4 23.5 23.6 23.5 23.6 23.4 23.8 2244..11 2244..33 2244..77 48 Private financial intermediation (percent) 87.0 86.8 86.4 85.7 85.8 85.7 85.3 84.7 84.5 84.6 84.4 49 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 Corporate equities not included above 50 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 33,,777700..77 3,987.7 44,,555500..22 51 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 57 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 53 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 54 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. 30. Excludes net investment of these reserves in corporate equities. 1. Line 1 of table 1.59. 31. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 8-11. 32. Line 13 less line 20 plus line 26. 6. Includes farm and commercial mortgages. 33-37. Lines 14-18 less amounts acquired by private finance plus amounts 11. Credit market debt of federally sponsored agencies, and net issues of borrowed by private finance. Line 37 includes mortgages. federally related mortgage pool securities. 39. Mainly an offset to line 9. 13. Line 1 less line 2 plus line 11 and 12. Also line 20 less line 26 plus line 32. 46. Sum of lines 32 plus 38, or line 13 less line 27 plus 39 and 45. Also sum of lines 27 and 46 less lines 39 and 45. 47. Line 2 divided by line 1. 18. Includes farm and commercial mortgages. 48. Line 20 divided by line 13. 25. Line 38 less lines 39 and 45. 49. Sum of lines 10 and 28. 26. Excludes equity issues and investment company shares. Includes line 19. 50-52. Includes issues by financial institutions. 28. 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 29. Demand deposits and note balances at commercial banks. Research and Statistics, Board of Governors of the Federal Reserve System, Digitized for FRASER Washington, D.C. 20551. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A45 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures Monthly and quarterly data are seasonally adjusted. Exceptions noted. 1990 Measure 1989 1990 Nov. Jan. Apr. Mayr July 1 Industrial production1 (1987=100) 108.1 108.3 107.2 105.0 106.4 107.1 107.6 Market groupings (1987=100) 2 Products, total 105.3 108.6 110.1 109.3 108.4 107.8 106.9 106.5 106.9 107.6 108.0 108.4 3 Final, total 105.6 109.1 110.9 110.2 109.2 109.1 108.3 108.1 108.7 109.1 109.4 109.8 4 Consumer goods 104.0 106.7 107.3 106.5 105.7 105.6 104.7 104.7 105.5 106.5 107.2 107.6 5 Equipment 107.6 112.3 115.5 115.1 113.6 113.6 112.9 112.5 112.8r 112.6 112.4 112.7 6 Intermediate 104.4 106.8 107.7 106.2 106.0 103.8 102.6 101.3 101.2r 102.6 103.5 103.8 7 Materials 105.6 107.4 107.8 106.8 105.3 104.8 103.9 102.6 103.4' 104.6 105.7 106.4 Industry groupings 8 Manufacturing (1987=100) 105.8 108.9 109.9 108.9 107.5 107.0 106.1 105.9 107.9 Capacity utilization (percent)2 83.9 83.9 82.3 80.7 78.0 77.2 77.5 77.8 78.2 78.4 9 Manufacturing 166.7 172.9 154.5r 146.0 130.0 132.0 133.0 128.0 145.0 138.0 133.0 144.0 10 Construction contracts (1982 = 100)3.. 128.0 131.5 133.8 133.1 132.9 132.7 132.4 132.1 131.9 132.0 132.0 131.9 11 Nonagricultural employment, total4 ... 103.4 104.0 102.7 100.6 100.1 99.3 98.7 98.1 97.7 98.0 97.7 97.7 12 Goods-producing, total 98.3 98.7 96.8 95.5 95.2 94.8 94.1 93.7 93.4 93.6 93.3 93.4 13 Manufacturing, total 93.5 93.8 91.5 89.9 89.6 89.1 88.3 87.9 87.7 87.9 87.8 88.0 14 Manufacturing, production worker 138.3 142.9 146.8 146.7 146.7 146.6 146.4 146.3 146.1 146.3 146.4 146.3 15 Service-producing 253.2 272.7 289.0 293.4 295.1 293.9 294.5 295.5 295.8 297.4 298.8 n.a. 16 Personal income, total 244.6 258.9 272.2 274.8 277.1 275.8 275.9 276.2 276.7 278.4 281.1 n.a. 17 Wages and salary disbursements 196.5 203.1 205.0 202.9 205.4 202.5 200.9 200.2 201.3r 202.8 204.8 n.a. 18 Manufacturing 252.2 270.1 286.1 290.1 291.6 290.6 291.4 292.6 292.T 294.3 295.6 n.a. 19 Disposable personal income 228.2 241.7 251.0 254.3 249.4 246.2 251.6 252.3 251.4 254.3 254.7 255.9 20 Retail sales6 Prices7 21 Consumer (1982-84 = 100) 118.3 124.0 130.7 133.8 133.8 134.6 134.8 135.0 135.2 135.6 136.0 136.2 22 Producer finished goods (1982 = 100) . 108.0 113.6 119.2 122.9 122.0 122.3 121.4 120.9^ 120.9 121.7 121.9 121.6 1. A major revision of the industrial production index and the capacity 6. Based on U.S. Bureau of Census data published in Survey of Current utilization rates was released in April 1990. See "Industrial Production: 1989 Business. Developments and Historical Revision" in the Federal Reserve Bulletin, vol. 76 1. Data without seasonal adjustment, as published in Monthly Labor Review. (April 1990), pp. 187-204. Seasonally adjusted data for changes in the price indexes may be obtained from 2. Ratios of indexes of production to indexes of capacity. Based on data from the Bureau of Labor Statistics, U.S. Department of Labor. the Federal Reserve, DRI McGraw-Hill Economics Department, U.S. Department of Commerce, and other sources. NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5,and 6, 3. Index of dollar value of total construction contracts, including residential, and indexes for series mentioned in notes 3 and 7 may also be found in the Survey nonresidential and heavy engineering, from McGraw-Hill Information Systems of Current Business. Company, F.W. Dodge Division. Figures for industrial production for the latest month are preliminary and the 4. Based on data in Employment and Earnings (U.S. Department of Labor). earlier three months have been revised. See "Recent Developments in Industrial Series covers employees only, excluding personnel in the Armed Forces. Capacity and Utilization," Federal Reserve Bulletin, vol. 76 (June 1990), pp. 5. Based on data in Survey of Current Business (U.S. Department of Com- 411-35. merce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • October 1991 2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted; exceptions noted. 1990 1991 CCaatteeggoorryy 11998888 11998899 11999900 Dec. Jan. Feb. Mar. Apr. Mayr June' July HOUSEHOLD SURVEY DATA 1 Noninstitotional population1 186,837 188,601 190,216 190,999 191,116 191,248 191,384 191,525 191,664 191,805 191,955 2 Labor force (including Armed Forces)1 123,893 126,077 126,954 127,307 126,777 127,209 127,467 127,817 127,374 127,766 127,330 3 Civilian labor force 121,669 112233,,886699 124,787 125,174 124,638 112255,,007766 112255,,332266 112255,,667722 112255,,223322 112255,,662299 112255,,221144 Employment 4 Nonagricultural industries 111,800 114,142 114,728 114,321 113,759 113,6% 113,656 114,243 113,319 113,576 113,474 5 Agriculture 3,169 3,199 3,186 3,253 3,163 3,222 3,098 3,156 3,272 3,308 3,239 Unemployment 6 Number 6,701 6,528 6,874 7,600 7,715 8,158 8,572 8,274 8,640 8,745 8,501 7 Rate (percent of civilian labor force) 5.5 5.3 5.5 6.1 6.2 6.5 6.8 6.6 6.9 7.0 6.8 8 Not in labor force 62,944 62,524 63,262 63,692 64,339 64,039 63,917 63,708 64,290 64,039 64,625 ESTABLISHMENT SURVEY DATA 9 Nona^icitkural payroll employment3 105,536 108,413 110,330 109,621 109,418 109,160 108,902 108,736 108,887 108,866 108,815 10 Manufacturing 19,350 19,426 19,064 18,749 18,671 18,532 18,443 18,3% 18,426 18,376 18,389 11 Mining 713 700 735 715 713 715 714 710 706 704 703 12 Contract construction 5,110 5,200 5,205 4,911 4,797 4,792 4,720 4,688 4,715 4,709 4,687 13 Transportation and public utilities 5,527 5,648 5,838 5,867 5,866 5,834 5,824 5,814 5,819 5,811 5,808 14 Trade 25,132 25,851 26,151 25,745 25,680 25,583 25,483 25,410 25,424 25,411 25,410 15 Finance 6,649 6,724 6,833 6,733 6,736 6,732 6,735 6,718 6,712 6,702 6,697 16 Service 25,669 27,0% 28,209 28,548 28,590 28,583 28,576 28,576 28,645 28,727 28,705 17 Government 17,386 17,769 18,295 18,353 18,365 18,389 18,407 18,424 18,440 18,426 18,416 1. Persons sixteen 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 twelfth day; annual data received pay for, the pay period that includes the twelfth 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 Series Q3 Q4 Q1 Q2' Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2r Output (1987 = 100) Capacity (percent of 1987 output) Utilization rate (percent) 1 Total industry 110.5 108.5 105.8 106.3 132.8 133.6 134.5 83.7 81.7 2 Manufacturing 109.0 106.1 106.6 134.0 135.0 136.0 136.9 82.9 3 Primary processing 107.6 104.7 100.6 100.9 125.5 126.1 126.8 127.5 85.8 83.0 4 Advanced processing 112.8 111.0 108.6 109.2 138.0 139.1 140.2 141.3 81.7 79.8 5 Durable 113.6 110.0 106.1 106.6 138.0 139.0 139.9 140.9 82.3 79.1 6 Lumber and products 101.5 95.7 92.3 93.5 124.0 124.6 125.0 125.2 81.8 76.8 7 Primary mettds 112.2 107.3 97.9 96.5 127.7 127.9 128.2 128.6 87.9 83.9 8 Iron and steel 114.3 110.0 96.3 93.9 132.5 132.7 133.0 133.5 86.3 82.9 9 Nonferrous. 109.2 103.4 100.2 100.1 120.9 121.1 121.3 121.5 90.3 85.3 10 Nonelectrical machinery 128.5 126.4 124.4 123.0 154.7 156.3 157.9 159.5 83.1 80.8 11 Electrical machinery 112.4 109.9 108.1 110.7 140.0 141.4 142.7 144.0 80.3 77.8 12 Motor vehicles and parts 103.7 89.4 89.5 132.7 132.9 133.4 134.2 78.2 67.2 13 Aerospace and miscellaneous transportation equipment 114.5 113.3 109.9 106.2 135.2 136.1 137.0 137.9 84.7 83.3 14 Nondurable 108.1 107.8 106.1 106.6 128.9 129.9 130.9 131.9 83.8 83.0 15 Textile mill products 101.3 98.2 94.6 98.9 116.6 117.0 117.3 117.7 86.9 84.0 16 Paper and products 107.2 105.8 102.6 102.6 115.1 115.7 116.4 117.1 93.2 91.4 17 Chemicals and products 110.8 110.2 109.1 109.3 135.9 137.1 138.4 139.7 81.5 80.4 18 Plastics materials 117.2 118.1 113.2 130.6 132.9 135.7 89.7 88.9 19 Petroleum products 110.0 107.4 107.3 107.4" 121.3 121.4 121.4 121.4" 90.7 88.5 20 Mining 103.4 103.1 102.0 101.3 114.5 114.0 113.8 114.3 90.3 90.4 21 Utilities 110.5 108.3 106.2 108.8 127.1 127.6 128.1 128.4 86.9 84.8 22 Electric 112.9 111.2 109.3 113.5 122.6 123.2 123.8 124.3 92.1 90.2 Previous cycle Latest cycle 1990 High Low High Low July Dec. Jan. Feb. Mar. Apr/ May Capacity utilization rate (percent) 23 Total industry 89.2 72.6 87.3 71.8 83.8 80.6 80.0 79.1 78.4 78.6 79.1 79.5 79.7 24 Manufacturing 88.9 70.8 87.3 70.0 83.1 79.4 78.9 78.0 77.2 77.5 77.8 78.2 78.4 25 Primary processing 92.2 68.9 89.7 66.8 86.1 81.5 80.6 79.5 77.9 78.2 79.1 80.1 8800..88 26 Advanced processing 87.5 72.0 86.3 71.4 81.8 78.5 78.2 77.4 76.8 77.3 77.3 77.4 7777..55 27 Durable 88.8 68.5 86.9 65.0 82.3 77.2 76.8 75.8 74.9 75.4 75.7 75.9 76.3 28 Lumber and products 90.1 62.2 87.6 60.9 83.6 74.9 75.4 73.2 72.9 74.1 73.8 76.1 76.6 29 Primary metals 100.6 66.2 102.4 46.8 86.4 81.4 77.8 77.6 73.8 73.6 75.4 76.2 79.0 30 Iron and steel 105.8 66.6 110.4 38.3 83.5 80.8 74.5 73.7 69.1 68.7 70.4 71.7 76.3 31 Nonferrous 92.9 61.3 90.5 62.2 90.9 82.3 83.0 83.7 81.1 81.1 83.1 83.0 83.2 32 Nonelectrical machinery 96.4 74.5 92.1 64.9 83.2 79.5 79.8 78.8 77.7 77.7 77.2 76.3 76.4 33 Electrical machinery 87.8 63.8 89.4 71.1 80.4 76.6 75.7 75.8 75.9 76.4 76.9 77.3 76.7 34 Motor vehicles and parts — 93.4 51.1 93.0 44.5 77.4 59.0 62.3 59.5 59.7 64.3 66.9 68.9 71.9 35 Aerospace and miscellaneous transportation equipment. 77.0 66.6 81.1 66.9 85.4 82.8 81.1 80.3 79.3 78.0 76.7 76.4 76.0 36 Nondurable 87.9 71.8 87.0 76.9 84.1 82.4 81.8 81.0 80.3 80.5 80.7 81.2 81.3 37 Textile mill products 92.0 60.4 91.7 73.8 88.3 82.1 80.2 80.4 81.3 82.7 84.3 85.2 86.6 38 Paper and products 96.9 69.0 94.2 82.0 93.8 91.0 89.8 87.9 86.8 86.7 86.5 89.6 91.0 39 Chemicals and products 87.9 69.9 85.1 70.1 81.5 79.9 79.8 78.8 77.9 78.3 78.2 78.2 77.8 40 Plastics materials 102.0 50.6 90.9 63.4 90.5 86.5 86.2 85.0 79.0 80.5 84.5 41 Petroleum products 96.7 81.1 89.5 68.2 91.1 87.0 86.2 89.6 89.4 87.1 88.4 89.8 ' 89.6 42 Mining 94.4 88.4 96.6 80.6 90.7 90.8 89.5 90.4 89.0 88.3 87.9 89.5 88.6 43 Utilities 95.6 82.5 88.3 76.2 86.4 85.1 84.1 81.6 83.0 82.6 86.4 85.2 85.7 44 Electric 99.0 82.7 88.3 78.7 91.6 90.6 89.3 87.0 88.6 88.5 93.6 92.0 92.8 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 • October 1991 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data are seasonally adjusted 1987 1990 1991 pro- 1990 GGrroouuppss por- avg. tion July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr/ Mayr Juner July" Index (1987 = 100) MAJOR MARKET 1 Total index 100.0 109.2 110.4 110.5 110.6 109.9 108.3 107.2 106.6 105.7 105.0 105.5 106.4 107.1 107.6 2 Products 60.8 110.1 110.9 110.9 111.4 111.0 109.3 108.4 107.8 106.9 106.5 106.9 107.6 108.0 108.4 3 Final products 46.0 110.9 111.7 111.9 112.6 112.3 110.2 109.2 109.1 108.3 108.1 108.7 109.1 109.4 109.8 4 Consumer goods, total 26.0 107.3 107.5 107.8 108.7 108.6 106.5 105.7 105.6 104.7 104.7 105.5 106.5 107.2 107.6 5 Durable consumer goods 5.6 106.2 108.3 107.4 110.4 106.9 99.4 96.0 97.6 95.2 95.9 99.3 100.9 103.4 104.6 6 Automotive products 2.5 102.3 106.7 104.6 111.8 107.1 93.5 86.7 90.6 88.1 88.9 94.2 97.2 99.9 103.2 7 Autos and trucks 1.5 97.4 104.8 101.5 113.0 107.5 84.2 74.6 79.6 74.7 76.7 85.0 89.2 92.5 98.1 8 Autos, consumer .9 92.2 98.0 97.2 111.5 104.6 80.7 77.2 83.2 78.6 76.3 78.3 81.9 83.8 92.8 9 Trucks, consumer .6 106.1 116.1 108.8 115.4 112.2 90.2 70.2 73.6 68.1 77.4 96.3 101.6 107.1 106.9 10 Auto parts and allied goods... 1.0 109.6 109.5 109.3 110.0 106.4 107.3 104.8 107.1 108.3 107.3 108.0 109.1 111.0 111.0 11 Other 3.1 109.4 109.5 109.6 109.3 106.8 104.1 103.4 103.2 100.7 101.4 103.4 103.8 106.3 105.6 12 Appliances, A/C, and TV .8 102.0 100.2 101.9 101.0 94.6 90.8 89.9 92.8 94.5 96.2 97.3 96.8 104.2 98.0 13 Carpeting and furniture .9 104.9 106.0 104.9 106.0 103.8 99.2 100.9 100.3 92.0 93.9 97.0 96.9 98.8 98.7 14 Miscellaneous home goods ... 1.4 116.4 116.9 116.8 116.1 115.5 114.6 112.5 110.8 109.8 109.2 110.8 112.2 112.2 114.3 15 Nondurable consumer goods 20.4 107.6 107.3 107.9 108.2 109.1 108.5 108.4 107.8 107.3 107.1 107.2 108.0 108.2 108.4 16 Foods and tobacco 9.1 105.9 105.1 105.7 105.3 106.7 107.8 107.5 106.3 105.9 105.4 105.3 106.2 106.2 106.6 17 Clothing 2.6 95.7 95.6 94.6 95.3 94.2 91.7 92.1 90.6 90.8 90.4 90.6 92.0 92.9 94.3 18 Chemical products 3.5 113.3 112.4 114.3 115.1 115.9 113.5 113.5 114.7 114.8 114.2 115.0 113.9 114.2 113.4 19 Paper products 2.5 119.7 120.3 119.3 121.9 123.4 122.8 122.7 122.1 121.0 122.2 122.7 121.8 123.1 122.9 20 Energy 2.7 105.9 106.7 109.0 108.0 108.8 106.4 106.6 106.5 105.2 105.5 104.4 108.7 107.4 107.9 21 Fuels .7 102.9 104.6 106.0 105.6 104.0 101.1 98.1 99.8 103.4 104.3 101.4 103.6 104.1 104.1 22 Residential utilities 2.0 107.0 107.5 110.0 108.9 110.6 108.4 109.7 109.0 105.9 105.9 105.5 110.6 108.7 109.3 23 Equipment, total 20.0 115.5 117.2 117.2 117.8 117.0 115.1 113.6 113.6 112.9 112.5 112.8 112.6 112.4 112.7 24 Business equipment 13.9 123.1 125.0 125.4 126.4 125.4 122.9 121.2 121.6 120.6 120.3 121.3 121.5 121.5 122.4 25 Information processing and related .. 5.6 127.2 128.0 128.5 129.5 130.1 128.8 127.5 130.1 131.6 131.2 131.5 131.3 130.4 130.6 26 Office and computing 1.9 149.8 152.7 152.2 153.6 155.3 149.8 148.9 155.0 157.3 155.1 155.6 154.1 151.5 151.8 77 Industrial 4.0 115.3 117.2 117.9 117.4 115.4 115.3 112.3 111.5 109.1 109.5 109.3 109.4 109.0 110.2 28 Transit 2.5 129.9 135.5 135.4 140.5 137.5 126.3 123.4 124.0 120.3 120.4 124.1 125.9 128.2 131.5 29 Autos and trucks 1.2 96.8 103.1 101.5 111.0 106.5 83.9 75.3 79.8 75.0 76.7 84.4 87.9 90.8 96.6 30 Other 1.9 118.5 119.2 119.8 118.5 117.0 117.6 118.5 115.0 112.5 110.8 112.7 112.7 112.9 112.2 31 Defense and space equipment 5.4 97.3 97.8 97.7 97.3 97.3 96.2 95.8 94.4 94.5 93.9 92.5 91.5 90.6 90.0 32 Oil and gas well drilling .6 109.0 116.2 106.9 107.4 107.1 109.7 107.3 106.4 108.2 107.7 105.1 101.3 103.0 97.8 33 Manufactured homes .2 90.8 90.0 93.4 91.8 89.0 87.3 83.4 83.1 77.3 79.3 83.1 86.6 90.8 88.5 34 Intermediate products, total 14.7 107.7 108.4 107.9 107.4 107.0 106.2 106.0 103.8 102.6 101.3 101.2 102.6 103.5 103.8 35 Construction supplies 6.0 105.2 106.7 105.3 103.8 103.1 101.8 101.0 97.7 96.4 94.0 94.9 96.0 97.1 97.7 36 Business supplies 8.7 109.4 109.5 109.7 109.9 109.7 109.2 109.4 108.1 106.8 106.4 105.6 107.2 107.9 108.1 37 Materials, total 39.2 107.8 109.6 109.7 109.4 108.3 106.8 105.3 104.8 103.9 102.6 103.4 104.6 105.7 106.4 38 Durable goods materials 19.4 111.8 114.0 114.9 114.1 112.5 110.4 107.5 106.8 105.5 103.3 104.9 106.1 107.1 108.1 39 Durable consumer parts 4.2 104.0 108.1 110.4 109.0 106.0 98.5 91.1 94.2 90.4 87.5 92.1 95.5 98.1 101.2 40 Equipment parts 7.3 118.1 119.2 119.4 119.8 118.6 117.4 116.9 115.9 116.2 114.8 114.6 114.7 113.9 113.8 41 Other 7.9 110.2 112.4 113.1 111.6 110.4 110.2 107.4 105.2 103.8 101.0 102.6 103.8 105.5 106.6 42 Basic metal materials 2.8 111.9 115.5 116.3 115.8 112.0 112.7 109.6 104.6 104.8 101.2 101.6 103.0 105.3 107.2 43 Nondurable goods materials 9.0 106.0 107.8 106.8 106.9 106.5 105.6 104.9 104.9 103.6 102.8 103.1 103.8 105.1 105.9 44 Textile materials 1.2 96.7 100.2 97.8 98.1 97.9 95.1 91.4 89.1 91.5 92.7 94.7 96.8 97.8 99.2 45 Pulp and paper materials 1.9 106.4 109.0 106.9 109.4 108.6 107.2 108.5 106.0 104.1 102.4 102.0 101.5 107.0 108.8 46 Chemical materials 3.8 106.8 108.5 108.0 106.6 105.6 105.8 105.7 106.7 104.1 102.7 102.9 103.9 104.0 104.0 47 Other 2.1 109.5 109.9 109.3 110.1 110.8 109.4 107.6 109.3 108.8 108.8 109.0 109.8 109.5 110.4 48 Energy materials 10.9 102.1 103.3 103.0 103.0 102.3 101.6 102.0 101.1 101.1 101.3 101.1 102.6 103.6 103.8 49 Primary energy 7.2 101.3 103.3 102.1 101.0 100.7 101.4 101.9 101.3 102.1 101.5 100.5 101.5 103.3 103.0 50 Converted fuel materials 3.7 103.5 103.4 104.9 107.0 105.3 102.0 102.1 100.9 99.2 100.8 102.4 104.7 104.2 105.4 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.3 109.5 110.6 110.7 110.6 110.0 109.0 108.1 107.4 106.6 105.7 106.1 106.9 107.5 107.9 52 Total excluding motor vehicles and parts... 95.3 109.8 110.8 110.9 110.7 110.2 109.4 108.6 107.8 107.0 106.2 106.5 107.2 107.8 108.1 53 Total excluding office and computing machines 97.5 108.2 109.3 109.4 109.5 108.8 107.3 106.1 105.4 104.4 103.7 104.2 105.2 106.0 106.5 54 Consumer goods excluding autos and trucks 24.5 107.9 107.6 108.2 108.4 108.7 107.9 107.6 107.2 106.5 106.4 106.7 107.5 108.0 108.2 55 Consumer goods excluding energy 23.3 107.5 107.6 107.7 108.7 108.6 106.5 105.6 105.5 104.7 104.6 105.6 106.2 107.1 107.6 56 Business equipment excluding autos and trucks 12.7 125.6 127.2 127.8 128.0 127.2 126.8 125.6 125.7 125.0 124.5 124.9 124.8 124.5 124.9 57 Business equipment excluding office and computing equipment 12.0 118.7 120.5 121.1 122.0 120.6 118.6 116.7 116.2 114.6 114.6 115.7 116.2 116.6 117.6 58 Materials excluding energy 28.4 110.0 112.1 112.3 111.8 110.6 108.9 106.6 106.2 104.9 103.1 104.3 105.4 106.4 107.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A49 2.13—Continued 1987 1990 1991 SIC pro- 1990 Groups code por- aavvgg.. tion July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr/ Mayr JJuunneerr Index (1987 = 100) MAJOR INDUSTRY 1 Total index. 100.0 109.2 110.4 110.5 110.6 109.9 108.3 107.2 106.6 105.7 105.0 105.5 106.4 107.1 2 Manufacturing 84.4 109.9 111.1 111.1 111.2 110.7 108.9 107.5 107.0 106.1 105.2 105.9 106.5 107.3 3 Primary processing .. 26.7 106.3 107.9 108.0 106.9 106.2 104.9 102.9 102.0 100.8 99.0 99.6 100.8 102.3 4 Advanced processing 57.7 111.6 112.5 112.5 113.2 112.8 110.8 109.5 109.3 108.5 108.0 108.9 109.2 109.6 Durable 47.3 111.6 113.4 113.5 113.8 112.5 109.9 107.5 107.2 106.1 105.0 106.0 106.6 107.2 Lumber and products ... 24 2.0 101.6 103.6 100.5 100.3 98.2 95.5 93.5 94.2 91.5 91.2 92.7 92.4 95.4 Furniture and fixtures ... 25 1.4 105.9 108.0 106.7 106.9 104.4 102.3 102.0 99.0 94.9 95.4 98.3 98.5 99.7 Clay, glass, and stone products 32 2.5 105.7 106.0 106.6 104.5 104.4 103.8 100.7 97.2 98.9 94.4 94.2 95.5 95.3 Primary metals 33 3.3 108.4 110.3 114.6 111.6 108.6 109.1 104.2 99.7 99.5 94.7 94.5 96.9 98.0 Iron and steel 331,2 1.9 109.9 110.6 118.3 113.9 110.3 112.6 107.3 99.0 98.0 92.0 91.6 94.0 95.9 Raw steel .1 109.6 113.9 118.5 111.6 112.8 109.5 100.6 104.7 97.9 89.8 91.0 88.9 94.0 Nonferrous 333-6,9 1.4 106.2 109.8 109.4 108.4 106.2 104.1 99.8 100.6 101.6 98.4 98.5 101.0 100.9 Fabricated metal products 5.4 105.9 107.7 107.9 106.8 106.4 104.3 101.9 101.7 99.1 97.8 98.0 99.3 100.8 Nonelectrical machinery. 8.6 126.5 128.3 128.8 128.5 128.1 126.3 124.7 125.5 124.5 123.1 123.5 123.2 122.2 Office and computing machines 357 2.5 149.8 152.7 152.2 153.6 155.3 149.8 148.9 155.0 157.3 155.1 155.6 154.2 151.6 Electrical machinery 36 8.6 111.4 112.2 112.5 112.5 110.8 110.4 108.7 107.6 108.2 108.6 109.7 110.7 111.6 Transportation equipment 37 9.8 105.5 109.3 107.9 111.1 109.2 100.1 96.6 97.6 95.5 95.0 97.2 98.1 99.4 Motor vehicles and parts 371 4.7 96.8 102.7 101.0 107.5 103.8 85.8 78.5 83.0 79.4 79.8 86.2 89.8 92.6 Autos and light trucks... 2.3 96.6 103.8 100.9 112.8 107.1 83.7 74.9 80.1 75.3 76.6 84.0 88.2 91.2 Aerospace and miscellaneous transportation equipment.. 372-6,9 5.1 113.3 115.2 114.1 114.2 114.0 113.1 112.9 110.8 110.0 108.8 107.2 105.7 105.6 Instruments 38 3.3 116.8 116.9 117.5 118.4 118.1 118.1 117.3 119.0 119.3 118.4 118.6 118.2 117.5 Miscellaneous manufacturers 39 1.2 120.0 120.4 121.8 121.3 121.5 122.5 119.1 116.1 114.6 115.3 117.5 117.9 117.6 23 Nondurable 37.2 107.8 108.1 108.1 108.0 108.4 107.7 107.4 106.8 106.0 105.4 105.9 106.4 107.4 24 Foods 8.8 107.6 107.1 107.7 107.6 108.8 109.6 109.1 108.3 107.6 107.4 107.6 107.9 108.1 25 Tobacco products 11..00 98.6 98.5 96.3 96.4 97.8 99.0 101.1 100.0 100.1 98.2 97.6 98.8 99.3 26 Textile null products 11..88 100.8 102.9 100.4 100.7 101.2 97.4 96.1 94.0 94.3 95.4 97.2 99.2 100.3 27 Apparel products 2.4 98.8 99.2 98.8 98.4 97.2 95.5 94.9 92.9 93.1 92.5 93.2 95.2 95.9 28 Paper and products 3.6 105.3 107.8 106.5 107.5 106.8 105.1 105.4 104.2 102.2 101.3 101.3 101.3 105.1 29 Printing and publishing .. 6.4 111.9 111.4 110.9 111.6 112.9 112.4 112.8 112.1 110.9 110.4 110.7 110.5 111.2 30 Chemicals and products . 8.6 110.3 110.4 111.1 110.9 110.7 110.0 109.9 110.1 109.1 108.2 109.0 109.2 109.6 31 Petroleum products 1.3 108.2 110.5 110.2 109.3 108.6 107.8 105.6 104.7 108.8 108.5 105.7 107.4 109.0 32 Rubber and plastic products 3.0 110.2 110.9 112.0 110.3 110.6 109.6 106.9 108.8 106.1 104.4 106.6 109.0 110.3 33 Leather and products ... .3 100.0 102.5 99.6 100.3 95.3 89.9 92.6 89.6 90.8 91.5 90.0 89.5 90.6 34 Mining 7.9 102.6 104.0 102.4 103.9 102.6 103.3 103.4 101.7 102.9 101.5 100.9 100.5 102.4 35 Metal 10 .3 153.1 164.8 155.7 163.6 146.8 153.4 162.0 143.1 148.0 147.6 145.7 147.3 149.5 36 Coal 11,12 1.2 113.2 118.5 110.2 116.8 114.7 112.9 110.6 108.4 112.8 109.9 105.9 103.4 110.2 37 Oil and gas extraction 13 5.7 95.5 95.5 95.8 95.8 95.8 97.3 96.7 96.0 97.2 96.4 96.6 96.4 97.4 38 Stone and earth minerals .. 14 .7 119.5 121.8 120.1 121.7 118.0 113.5 118.9 119.2 112.0 108.0 107.0 108.3 108.8 39 Utilities... 7.6 108.0 109.7 111.4 110.3 109.2 106.9 108.8 107.6 104.6 106.4 105.9 111.0 109.5 40 Electric. 491,3PT 6.0 110.8 112.1 113.6 112.9 112.1 109.6 111.8 110.4 107.8 109.8 109.8 116.3 114.5 41 Gas.... 492,3PT 1.6 97.3 100.7 103.3 100.9 98.1 97.0 97.6 97.5 92.8 93.6 91.6 91.3 91.0 SPECIAL AGGREGATES 42 Manufacturing excluding motor vehicles and parts 79.8 110.7 111.6 111.7 111.4 111.1 110.3 109.1 108.4 107.6 106.7 107.1 107.5 108.1 43 Manufacturing excluding office and computing machines 82.0 108.7 109.8 109.9 110.0 109.4 107.7 106.2 105.6 104.5 103.7 104.4 105.1 106.0 Gross value (billions of 1982 dollars, annual rates) MAJOR MARKET 44 Products, total 1734.8 1,911.4 1,923.5 1,929.5 1,941.6 1,939.6 1,882.8 1,859.4 1,860.4 1,848.4 1,845.4 1,853.3 1,873.8 1,883.9 45 Final 1350.9 1,497.7 1,508.7 1,516.3 1,529.1 1,523.7 1,470.8 1,450.8 1,459.6 1,452.8 1,455.6 1,464.6 1,476.8 1,486.1 46 Consumer goods 833.4 882.9 886.0 885.9 895.2 892.7 865.2 857.6 857.9 852.7 857.4 862.9 874.9 881.6 47 Equipment 517.5 614.8 622.7 630.4 633.9 631.0 605.6 593.2 601.7 600.1 598.2 601.7 601.9 604.5 48 Intermediate 384.0 413.7 414.9 413.1 412.5 415.9 412.0 408.7 400.8 395.6 389.8 388.7 397.0 397.9 1. These data also appear in the Board's G.17 (419) release. For requests see utilization rates was released in April 1990. See "Industrial Production: 1989 address inside front cover. Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April A major revision of the industrial production index and the capacity 1990), pp. 187-204. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • October 1991 2.14 HOUSING AND CONSTRUCTION Monthly figuresa re at seasonally adjusted annual rates, except as noted. 1990 1991 IItteemm 11998888 11998899 11999900 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.' May June Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,456 1,339 1,111 989 925 916 854 802 876 892 913 966 999 2 One-family 994 932 794 730 703 668 645 611 695 689 742 760 780 3 Two-or-more-family 462 407 317 259 222 248 209 191 181 203 171 206 219 4 Started 1,488 1,376 1,193 1,106 1,026 1,130 971 847 992 907 977 983 1,032 5 One-family 1,081 1,003 895 858 839 769 751 648 788 742 801 831 862 6 Two-or-more-family 407 373 298 248 187 361 220 199 204 165 176 152 170 7 Under construction, end of period1 . 919 850 711 790 766 756 744 717 709 680 674 665 655 8 One-family 570 535 449 503 497 486 478 461 457 442 443 444 446 9 Two-or-more-family 350 315 262 287 269 270 266 256 252 238 231 221 209 10 Completed 1,530 1,423 1,308 1,314 1,275 1,246 1,155 1,125 1,096 11,,119900 1,089 1,069 1,084 11 One-family 1,085 1,026 966 963 930 922 878 841 838 888811 821 796 804 12 Two-or-more-family 445 396 342 351 345 324 277 284 258 309 268 273 280 13 Mobile homes shipped 218 198 188 184 186 181 167 168 157 157 175 174 173 Merchant builder activity in one-family units 14 Number sold 675 650 535 504 465 480 464 414 488 495' 505 489 525 15 Number for sale, end of period1 368 363 318 338 334 327 318 315 313 308 304 301 295 Price of units sold (thousands of dollars)2 16 Median 113.3 120.4 122.3 113.0 120.0 118.9 127.0 117.9 119.9 122.5' 120.7 117.1 120.0 17 Average 139.0 148.3 149.0 142.1 153.0 143.3 153.4 148.6 147.8 156.4' 150.0 149.7 148.5 EXISTING UNITS (one-family) 18 Number sold 3,594 3,439 3,316 3,160 3,070 3,150 3,130 2,900 3,160 3,220 3,310 3,540 3,590 Price of units sold (thousands of dollars)2 19 Median 89.2 92.9 95.2 94.4 92.9 92.0 91.7 95.6 94.0 98.2 100.3 101.1 102.0 20 Average 112.5 118.0 118.3 116.8 115.9 115.6 114.1 123.0 119.7 125.2 128.9 130.6 130.5 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 432,222 443,720 446,433 437,161 434,559 431,407 421,346 406,502 410,072 401,883 405,905 399,209 400,340 7? Private 337,440 345,416 337,776 330,323 324,054 317,190 311,349 303,932 300,495 293,262 298,019 290,937 291,358 73 198,101 196,551 182,856 175,415 172,120 168,031 165,014 161,793 155,622 152,447 151,236 155,032 158,537 74 Nonresidential, total 139,339 148,865 154,920 154,908 151,934 149,159 146,335 142,139 144,873 140,815 146,783 135,905 132,821 Buildings 75 16,451 20,412 23,849 22,544 22,847 22,481 22,999 22,433 23,249 23,089 24,402 20,581 21,570 76 64,025 65,496 62,866 62,660 60,208 57,764 56,913 53,848 54,023 51,766 54,707 50,088 47,316 77 Other 19,038 19,683 21,591 22,705 22,300 22,121 20,953 20,621 20,850 20,628 21,885 20,843 20,468 28 Public utilities and other 39,825 43,274 46,614 46,999 46,579 46,793 45,470 45,237 46,751 45,332 45,789 44,393 43,467 79 Public 94,783 98,303 108,655 106,838 110,505 114,218 109,997 102,570 109,577 108,621 107,886 108,273 108,982 30 Military 3,579 3,520 2,734 2,520 1,958 2,960 1,868 1,868 1,723 1,866 1,828 1,918 1,850 31 Highway 29,227 28,171 30,595 29,781 31,639 34,304 33,185 25,560 30,699 29,996 28,626 29,246 28,761 37, Conservation and development... 4,739 4,989 4,718 3,439 4,700 4,901 5,374 6,434 5,529 4,586 5,825 5,426 5,800 33 Other 57,238 61,623 70,608 71,098 72,208 72,053 69,570 68,708 71,626 72,173 71,607 71,683 72,571 1. Not at annual rates. SOURCE. 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 from 1978 to 1983, and 17,000 jurisdictions beginning in 1984. 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 Item 1991 1991 July 1990 1991 1991 July July Sept. Dec. Mar/ June' Mar/ Apr/ May June CONSUMER PRICES2 (1982-84=100) 1 All items 4.8 8.2 4.9 2.4 3.0 4 2 3 A E Fo n ll o e i d r t g e y m i s t e l m es s s food and energy. 5 5 . . . 7 0 4 4 3 2 . . . 8 8 9 44 4 6 . . . 2 0 6 1 3 3 8 . . . 8 9 0 -30 6 2 . . . 8 7 4 -1 3 5 . . . 2 2 1 -2. . . 6 2 1 1 . . . 2 0 4 -1. . . 0 4 5 5 6 C Se o r m vi m ce o s d ities 3 5 . . 5 9 4 5 . . 2 1 3 7 . . 3 2 2 4 . . 3 8 7 6 . . 9 4 3 3 . . 2 0 -.1 .3 . .2 3 . .4 2 PRODUCER PRICES (1982=100) 1 1 7 8 9 1 0 Fin C C O C i a o o s th h p n n e i e s s t r d u u a l m m c g o e o e e n q r r o s u d f e u i s o n p m o e m e d r r g e s n y g t oods - 3 5 3 3 . . . . 4 . 0 6 5 9 1 - 3 2 3 3 .2 . . . . 0 9 6 7 11 1 2 3 3 8 1 . . . . . 3 6 7 5 3 2 5 1 3 3 1 . . . . . 1 1 3 4 3 -3 -3 5 4 5 1 . . . . . 5 5 6 9 0 - 1 .3 . . . . 7 3 0 9 -3 -. . 2 . . . 3 2 3 2 2. . . . . 2 2 4 6 6 - - - 1 - . . . . 3 6 2 . 4 3 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 e t r e g r y i als3 . . 5 3 1 . . 5 2 1 4 3 . . 0 4 4 2 . . 2 3 - - 9 2 . . 8 3 - -1 1. . 0 0 -1 -. . 5 2 -.1 .1 . . 0 0 Crude materials 1 1 1 4 5 6 O E Fo n th o e e r d r g s y -1 4 2 1 . . . 0 8 7 - - 1 9 9 2 . . . 1 1 2 3 - 0 7 5 5 . . . 8 8 9 - -1 1 -7 8 8 . . . 3 1 8 -5 -4 4 . . . 7 0 0 - - 1 1 -1 2 3 . . . 5 5 0 - - 7 1 1 . . . 3 3 0 -3 3 . . 2 0 - -2 3 . . . 5 6 7 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 • October 1991 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1990 1991 AAccccoouunntt 11998888 11998899 11999900 Q1 Q2 Q3 Q4 Q1 GROSS NATIONAL PRODUCT 1 Total 4,873.7 5,200.8 5,465.1 5,375.4 5,443.3 5,514.6 5,527.3 5,557.7 By source 2 Personal consumption expenditures 3,238.2 3,450.1 3,657.3 3,588.1 3,622.7 3,693.4 3,724.9 3,742.8 3 Durable goods 457.5 474.6 480.3 492.1 478.4 482.3 468.5 455.3 4 Nondurable goods 1,060.0 1,130.0 1,193.7 1,174.7 1,179.0 1,205.0 1,216.0 1,212.7 5 Services 1,720.7 1,845.5 1,983.3 1,921.3 1,965.3 2,006.2 2,040.4 2,074.8 6 Gross private domestic investment 747.1 771.2 741.0 747.2 759.0 759.7 698.3 660.0 7 Fixed investment 720.8 742.9 746.1 758.9 745.6 750.7 729.2 694.1 8 Nonresidential 488.4 511.9 524.1 523.1 516.5 532.8 524.0 503.6 9 Structures 139.9 146.2 147.0 148.8 147.2 149.8 142.1 139.5 10 Producers' durable equipment 348.4 365.7 377.1 374.3 369.3 383.0 381.9 364.1 11 Residential structures 232.5 231.0 222.0 235.9 229.1 217.9 205.2 190.5 12 Change in business inventories 26.2 28.3 -5.0 -11.8 13.4 9.0 -30.8 -34.2 13 Nonfarm 29.8 23.3 -7.4 -17.0 13.0 6.8 -32.4 -37.1 14 Net exports of goods and services -74.1 -46.1 -31.2 -30.0 -24.9 -41.3 -28.8 13.5 15 Exports 552.0 626.2 672.8 661.3 659.7 672.7 697.4 694.5 16 Imports 626.1 672.3 704.0 691.3 684.6 714.1 726.2 681.0 17 Government purchases of goods and services 962.5 1,025.6 1,098.1 1,070.1 1,086.4 1,102.8 1,132.9 1,141.5 18 Federal 380.3 400.0 424.0 410.6 421.9 425.8 437.6 443.8 19 State and local 582.3 625.6 674.1 659.6 664.6 677.0 695.3 697.7 By major type of product 20 Final sales, total 4,847.5 5,172.5 5,470.2 5,387.2 5,429.9 5,505.6 5,558.2 5,591.9 21 Goods 1,908.9 2,044.4 2,148.3 2,122.8 2,133.1 2,161.4 2,175.9 2,170.2 22 Durable 840.3 894.7 939.0 941.4 930.1 943.4 941.2 918.5 23 Nondurable 1,068.6 1,149.7 1,209.3 1,181.4 1,203.0 1,218.0 1,234.7 1,251.7 24 Services 2,488.6 2,671.2 2,864.5 2,791.3 2,834.2 2,889.6 2,943.0 3,004.0 25 Structures 450.0 456.9 457.4 473.0 462.5 454.6 439.3 417.7 26 Change in business inventories 26.2 28.3 -5.0 -11.8 13.4 9.0 -30.8 -34.2 27 Durable goods 19.9 11.9 -11.1 -21.6 .0 9.8 -32.5 -42.2 28 Nondurable goods 6.4 16.4 6.0 9.8 13.4 -.8 1.7 8.0 MEMO 29 Total GNP in 1982 dollars 4,016.9 4,117.7 4,157.3 4,150.6 4,155.1 4,170.0 4,153.4 4,124.1 NATIONAL INCOME 30 Total 3,984.9 4,223.3 4,418.4 4,350.3 4,411.3 4,452.4 4,459.7 4,456.4 31 Compensation of employees 2,905.1 3,079.0 3,244.2 3,180.4 3,232.5 3,276.9 3,286.9 3,299.3 32 Wages and salaries 2,431.1 2,573.2 2,705.3 2,651.6 2,696.3 2,734.2 2,738.9 2,742.8 33 Government and government enterprises 446.6 476.6 508.0 497.1 505.7 511.3 518.1 529.8 34 Other 1,984.5 2,096.6 2,197.2 2,154.5 2,190.6 2,222.9 2,220.8 2,213.0 35 Supplement to wages and salaries 474.0 505.8 538.9 528.8 536.1 542.7 548.0 556.5 36 Employer contributions for social insurance 248.5 263.9 280.8 276.0 279.7 282.7 284.8 290.3 37 Other labor income 225.5 241.9 258.1 252.8 256.4 260.0 263.2 266.2 38 Proprietors' income1 354.2 379.3 402.5 404.0 401.7 397.9 406.2 404.4 39 Business and professional1 310.5 330.7 352.6 346.6 350.8 355.6 357.4 355.8 40 Farm1 43.7 48.6 49.9 57.4 51.0 42.4 48.8 48.5 41 Rental income of persons2 16.3 8.2 6.9 5.5 4.3 8.4 9.3 5.6 42 Corporate profits1 337.6 311.6 298.3 296.8 306.6 300.7 288.9 286.2 43 Profits before tax 316.7 307.7 304.7 296.9 299.3 318.5 304.1 281.5 44 Inventory valuation adjustment -27.0 -21.7 -11.4 -11.4 -.5 -19.8 -13.8 8.1 45 Capital consumption adjustment 47.8 25.5 4.9 11.3 7.7 2.0 -1.4 -3.5 46 Net interest 371.8 445.1 466.7 463.6 466.2 468.3 468.4 460.9 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. 1990 Account 1989 Q1 Q2 Q3 Q4 PERSONAL INCOME AND SAVING 1 Total persona] income 4,070.8 4,384.3 4,645.5 4,562.8 4.622.2 4,678.5 4,718.5 2 Wage and salary disbursements 2.431.1 2.573.2 2,705.3 2.651.6 2.696.3 2,734.2 2,738.9 3 Commodity-producing industries 696.4 720.6 729.3 724.6 731.1 735.3 726.0 4 Manufacturing 524.0 541.8 546.8 541.2 548.1 551.8 546.1 5 Distributive industries 572.0 604.7 637.2 627.0 637.3 642.7 641.9 6 Service industries 716.2 771.4 830.8 802.9 822.2 844.9 853.0 7 Government and government enterprises 446.6 476.6 508.0 497.1 505.7 511.3 518.1 8 Other labor income 225.5 241.9 258.1 252.8 256.4 260.0 263.2 9 Proprietors' income 354.2 379.3 402.5 404.0 401.7 397.9 406.2 10 Business and professional 310.5 330.7 352.6 346.6 350.8 355.6 357.4 11 Farm1 43.7 48.6 49.9 57.4 51.0 42.4 48.8 12 Rental income of persons2 16.3 8.2 6.9 5.5 4.3 8.4 9.3 13 Dividends 102.2 114.4 123.8 120.5 122.9 124.9 126.7 14 Personal interest income 547.9 643.2 680.4 670.5 678.0 685.3 687.9 15 Transfer payments 587.7 636.9 694.8 680.9 686.7 696.4 715.1 16 Old-age survivors, disability, and health insurance benefits .. 300.5 347.2 347.6 351.1 356.8 325.3 350.7 17 LESS: Personal contributions for social insurance 194.1 222.9 224.1 228.6 228.9 212.8 226.2 18 EQUALS: Personal income 4,070.8 4,562.8 4,622.2 4.678.5 4,718.5 4.384.3 4,645.5 19 LESS: Personal tax and nontax payments 591.6 675.1 696.5 709.5 716.6 658.8 699.4 20 EQUALS: Disposable personal income 3.479.2 3,725.5 3,946.1 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 3,696.4 3,730.6 3.802.6 3,834.4 22 EQUALS: Personal saving 145.6 171.8 180.1 191.3 195.1 166.5 167.5 MEMO Per capita (1982 dollars) 23 Gross national product 16,302.4 16,549.6 16,535.3 16,576.4 16,552.5 16,562.9 16,449.4 24 Personal consumption expenditures 10,578.3 10,678.0 10,665.8 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 11,586.0 11,564.0 11,511.0 11,376.0 26 Saving rate (percent) 4.2 4.6 4.6 4.9 5.0 4.2 4.2 GROSS SAVING 27 Gross saving 656.1 691.5 657.3 664.8 679.3 665.9 619.2 28 Gross private saving 751.3 779.3 787.9 795.0 806.7 772.2 777.8 29 Personal saving 145.6 171.8 180.1 191.3 195.1 166.5 167.5 30 Undistributed corporate profits1 91.4 53.0 32.2 36.7 40.5 26.5 25.2 31 Corporate inventory valuation adjustment -27.0 -21.7 -11.4 -11.4 -.5 -19.8 -13.8 Capital consumption allowances 32 Corporate 322.1 346.4 363.0 356.7 359.7 365.5 370.3 33 Noncorporate 192.2 208.0 212.6 210.3 211.4 213.8 214.8 34 Government surplus, or deficit (-), national income and product accounts -95.3 -87.8 -130.6 -130.2 -127.3 -106.4 -158.6 35 Federal -141.7 -134.3 -166.0 -168.3 -166.0 -145.7 -184.3 36 State and local 46.5 46.4 35.4 38.1 38.6 39.3 25.7 37 Gross investment 627.8 665.6 676.1 619.6 38 Gross private domestic 747.1 771.2 741.0 747.2 759.0 759.7 698.3 39 Net foreign -119.2 -96.8 -85.5 -81.6 -82.9 -98.7 -78.7 40 Statistical discrepancy -28.2 -3.2 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 • October 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 Q1 Q2 Q3 Q4 Ql' -126,236 -106,305 -92,123 -22,667 -22,178 -23,881 -23,402 10,215 Not seasonally adjusted -17,223 -20,653 -29,112 -25,136 15,394 Merchandise trade balance2 -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 (excluding military) -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 -314 4,759 1,581 12 Change in U.S. official reserve assets (increase, -). -3,912 -25,293 -2,158 -3,177 371 1,739 -1,091 -353 13 Gold 0 0 0 0 0 0 0 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 claims3 -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 -7,846 -22,575 -28,476 -8,756 -11,160 -1,014 -7,546 ' -9,426 21 U.S. direct investments abroad, net -17,879 -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 liabilities4 -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 U.S. nonbank-reported liabilities 5,626 5,454 3,779 660 699 4,260 -1,840 Foreign private purchases of U.S. Treasury securities, net 20,239 29,618 1,131 -1,151 4,287 24 -2,029 "'3,910 Foreign purchases of other U.S. securities, net 26,353 38,920 1,781 1,397 2,140 -2,558 802 5,026 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 -9,240 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 7,948 17,066 -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 excluding line 25 (increase, +) 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) -2,9% 10,738 2,163 3,094 193 -1,699 575 1,109 1. Seasonal factors are not calculated for lines 6, 10, 12-16, 18-20, 22-34, and 4. Associated primarily 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. The data differ from the 5. Consists of investments in U.S. corporate stocks and in debt securities of Census basis data, shown in table 3.11, for reasons of coverage and timing. private corporations and state and local governments. Military exports are excluded from merchandise data and are included in line 6. SOURCE. Data are from Bureau of Economic Analysis, Survey of Current 3. Reporting banks include all kinds of depository institutions besides commer- Business (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; exports, F.A.S. value; imports, Customs value; monthly data are seasonally adjusted. 1990 1991 IItteemm 11998888 11998899 11999900 Dec. Jan. Feb. Mar. Apr. May' June'' 1 Exports of domestic and foreign merchandise excluding grant-aid shipments, f.a.s. value 322,426 363,812 393,592 33,570 34,144 33,599 34,031 35,632 35,271 34,839 2 General imports including merchandise for immediate consumption plus entries into bonded warehouses .... 440,952 473,211 495,311 39,895 41,520 39,103 38,100 40,139 40,062 38,860 3 Trade balance -118,526 -109,399 -101,718 -6,325 -7,376 -5,504 -4,070 -4,507 -4,790 -4,022 1. The Census basis data differ from merchandise trade data shown in table military payments are excluded and shown separately as indicated above. As of 3.10, U.S. International Transactions Summary, because of coverage and timing. Jan. 1,1987 census data are released forty-five days after the end of the month; the On the export side, the largest adjustment is the exclusion of military sales (which previous month is revised to reflect late documents. Total exports and the trade are combined with other military transactions and reported separately in the balance reflect adjustments for undocumented exports to Canada. "service account" in table 3.10, line 6). On the import side, additions are made for SOURCE. FT900, Summary of U.S. Export and Import Merchandise Trade gold, ship purchases, imports of electricity from Canada, and other transactions; (Department of Commerce, Bureau of the Census). 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 1991 TTyyppee 11998888 11998899 11999900 Jan. Feb. Mar. Apr. May June July" 1 Total 47,802 74,609 83,316 85,006 82,797 78,297 78,297 78,263 74,940 74,817 2 Gold stock, including Exchange Stabilization Fund1 11,057 11,059 11,058 11,058 11,058 11,058 11,058 11,057 11,062 11,062 3 Special drawing rights2,3 9,637 9,951 10,989 10,922 10,958 10,368 10,325 10,515 10,309 10,360 4 Reserve position in International Monetary Fund2 9,745 9,048 9,076 9,468 9,556 8,910 8,806 8,854 8,629 8,730 5 Foreign currencies 17,363 44,551 52,193 53,558 51,225 47,666 48,108 47,837 44,940 44,665 1. Gold held under earmark at Federal Reserve Banks for foreign and interna- been used. The U.S. SDR holdings and reserve positions in the IMF also are tional accounts is not included in the gold stock of the United States; see table valued on this basis beginning July 1974. 3.13. Gold stock is valued at $42.22 per fine troy ounce. 3. Includes allocations by the International Monetary Fund of SDRs as follows: 2. Beginning July 1974, the International Monetary Fund (IMF) adopted a $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1, technique for valuing the special drawing right (SDR) based on a weighted average 1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093 of exchange rates for the currencies of member countries. From July 1974 through million on Jan. 1, 1981; plus transactions in SDRs. December 1980, 16 currencies were used; from January 1981, 5 currencies have 4. Valued at current market exchange rates. 3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS1 Millions of dollars, end of period 1991 AAsssseettss 11998888 11998899 11999900 Jan. Feb. Mar. Apr. May June July" 1 Deposits 347 589 369 271 329 228 292 196 223 314 Assets held in custody 2 U.S. Treasury securities2 232,547 224,911 278,499 286,722 286,471 272,505 271,779 279,695 273,893 274,514 3 Earmarked gold3 13,636 13,456 13,387 13,377 13,382 13,374 13,363 13,358 13,354 13,330 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 • October 1991 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data1 Millions of dollars, end of period 1990 1991 AAsssseett aaccccoouunntt 11998877 11998888 11998899 Dec. Jan. Feb. Mar. Apr. May June All foreign countries 1 Total, all currencies 518,618 505,595 545,366 556,925 563,454r 560,968 547,104' 537,891 529,044 531,708 2 Claims on United States 138,034 169,111 198,835 188,496 183,305'' 188,174 183,990' 180,658' 172,653' 180,627 3 Parent bank 105,845 129,856 157,092 148,837 140,812' 145,967 143,795' 141,580 135,482' 141,854 4 Other banks in United States 16,416 14,918 17,042 13,296 14,541 12,887 12,268 12,085 10,412 11,871 5 Nonbanks 15,773 24,337 24,701 26,363 27,952 29,320 27,927' 26,993' 26,759' 26,902 6 Claims on foreigners 342,520 299,728 300,575 312,449 321.39C 313,595 307,305' 300,646' 297,896' 294,010 7 Other branches of parent bank 122,155 107,179 113,810 135,003 132,299' 124,584 129,732' 122,151' 118,482' 115,533 8 Banks 108,859 96,932 90,703 72,602 81,219 80,030 72,757 72,549 74,268' 75,656 9 Public borrowers 21,832 17,163 16,456 17,555 18,261' 17,893 17,915 17,825 18,208' 17,420 10 Nonbank foreigners 89,674 78,454 79,606 87,289 89,611 91,088 86,901 88,121 86,938' 85,401 11 Other assets 38,064 36,756 45,956 55,980 58,759 59,199 55,809' 56,587' 58,495' 57,071 12 Total payable in U.S. dollars 350,107 357,573 382,498 379,479 379,573r 380,180 382,402' 371,948' 362,631' 372,612 13 Claims on United States 132,023 163,456 191,184 180,174 175,223'' 180,601 176,903' 173,964' 166,561' 174,280 14 Parent bank 103,251 126,929 152,294 142,962 135,107' 140,789 138,850' 137,343 131,291' 137,907 15 Other banks in United States 14,657 14,167 16,386 12,513 13,739 12,266 11,757 11,624 10,020 11,362 16 Nonbanks 14,115 22,360 22,504 24,699 26,377 27,546 26,296' 24,997' 25,250' 25,011 17 Claims on foreigners 202,428 177,685 169,690 174,451 179,905' 173,527 180,415 173,044 171,882' 171,564 18 Other branches of parent bank 88,284 80,736 82,949 95,298 93,989' 87,394 95,106 87,895 85,365' 84,230 19 Banks 63,707 54,884 48,396 36,440 41,134 40,785 40,451 40,407 42,324' 43,370 20 Public borrowers 14,730 12,131 10,961 12,298 13,137' 12,944 13,206 12,996 13,137' 12,485 21 Nonbank foreigners 35,707 29,934 27,384 30,415 31,645 32,404 31,652 31,746 31,056' 31,479 22 Other assets 15,656 16,432 21,624 24,854 24,445 26,052 25,084' 24,940' 24,188' 26,768 United Kingdom 23 Total, all currencies 158,695 156,835 161,947 184,818 184,274' 180,211 175,638' 168,917 168,646 165,415 24 Claims on United States 32,518 40,089 39,212 45,560 39,511' 41,278 42,529' 38,136 38,338 37,535 25 Parent bank 27,350 34,243 35,847 42,413 35,847' 37,662 39,372' 34,930 34,830 34,495 26 Other banks in United States 1,259 1,123 1,058 792 1,095 924 848 1,179 1,104 711 27 Nonbanks 3,909 4,723 2,307 2,355 2,569 2,692 2,309 2,027 2,404 2,329 28 Claims on foreigners 115,700 106,388 107,657 115,536 121,220' 115,361 110,329 107,031 105,893 103,471 29 Other branches of parent bank 39,903 35,625 37,728 46,367 47,999' 41,653 44,341 40,730 39,077 38,333 30 Banks 36,735 36,765 36,159 31,604 34,050 34,518 30,660 30,608 32,027 31,910 31 Public borrowers 4,752 4,019 3,293 3,860 3,954' 4,029 3,943 3,711 3,657 3,584 32 Nonbank foreigners 34,310 29,979 30,477 33,705 35,217 35,161 31,385 31,982 31,132 29,644 33 Other assets 10,477 10,358 15,078 23,722 23,543 23,572 22,780' 23,750 24,415 24,409 34 Total payable in U.S. dollars 100,574 103,503 103,208 116,762 113,870' 113,673 114,960' 108,600 105,676 106,532 35 Claims on United States 30,439 38,012 36,404 41,259 35,434' 37,644 39,052' 35,058 35,274 34,700 36 Parent bank 26,304 33,252 34,329 39,609 33,068' 35,345 37,149' 32,973 32,771 32,764 37 Other banks in United States 1,044 964 843 334 771 615 562 976 970 555 38 Nonbanks 3,091 3,796 1,232 1,316 1,595 1,684 1,341 1,109 1,533 1,381 39 Claims on foreigners 64,560 60,472 59,062 63,701 68,139' 64,682 65,034 62,183 60,106 58,561 40 Other branches of parent bank 28,635 28,474 29,872 37,142 38,262' 33,136 36,150 32,842 31,297 30,108 41 Banks 19,188 18,494 16,579 13,135 14,905 15,840 15,097 15,460 16,102 14,983 42 Public borrowers 3,313 2,840 2,371 3,143 3,243' 3,290 3,220 3,193 3,152 3,082 43 Nonbank foreigners 13,424 10,664 10,240 10,281 11,729 12,416 10,567 10,688 9,555 10,388 44 Other assets 5,575 5,019 7,742 11,802 10,297 11,347 10,874' 11,359 10,798 13,271 Bahamas and Caymans 45 Total, all currencies 160,321 170,639 176,006 162,316 167,306 168,209 163,315 164,565 158,506 168,389 46 Claims on United States 85,318 105,320 124,205 112,989 115,806 118,783 110,808' 113,563' 107,750' 114,669 47 Parent bank 60,048 73,409 87,882 77,873 78,350 81,888 75,516' 79,818 75,472' 80,644 48 Other banks in United States 14,277 13,145 15,071 11,869 12,877 11,380 10,753 10,063 8,748 10,578 49 Nonbanks 10,993 18,766 21,252 23,247 24,579 25,515 24,539' 23,682' 23,530' 23,447 50 Claims on foreigners 70,162 58,393 44,168 41,356 42,801 40,363 43,868' 42,067' 42,039' 45,004 51 Other branches of parent bank 21,277 17,954 11,309 13,416 12,292 11,477 13,861' 12,554' 12,393' 12,801 52 Banks 33,751 28,268 22,611 16,310 18,343 16,863 17,571 17,458 17,284' 20,707 53 Public borrowers 7,428 5,830 5,217 5,807 6,528 6,484 6,846 6,556 6,520' 5,883 54 Nonbank foreigners 7,706 6,341 5,031 5,823 5,638 5,539 5,590 5,499 5,842' 5,613 55 Other assets 4,841 6,926 7,633 7,971 8,699 9,063 8,639' 8,935' 8,717' 8,716 56 Total payable in U.S. dollars 151,434 163,518 170,780 158,390 162,458 163,533 159,167' 160,526' 154,720' 164,485 1. Beginning in June 1984 reported claims held by foreign branches have been million to $150 million equivalent in total assets, the threshold now applicable to reduced by an increase in the reporting threshold for "shell" branches from $50 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 1988 11998899 Dec. Jan. Feb. Mar. Apr. May June All foreign countries 57 Total, all currencies 518,618 505,595 545,366 556,925 563,454' 560,968 547,104' 537,891 529,044 531,708 58 Negotiable certificates of deposit (CDs) 30,929 28,511 23,500 18,060 . 19,107' 18,595 19,920 19,484 17,703 16,503 59 To United States 161,390 185,577 197,239 189,412 185,768' 187,645 185,999' 180,279' 172,223' 187,411 60 Parent bank 87,606 114,720 138,412 138,748 133,574' 132,227 128,69C 123,883 117,514' 127,428 61 Other banks in United States 20,355 14,737 11,704 7,463 9,341 10,580 10,962' 9,927 8,996 12,109 62 Nonbanks 53,429 56,120 47,123 43,201 42,853 44,838 46,347' 46,469' 45,713' 47,874 63 To foreigners 304,803 270,923 296,850 311,668 319,821 316,522 306,047' 300,907' 301,247' 289,689 64 Other branches of parent bank ... 124,601 111,267 119,591 139,113 132,214 124,437 129,201' 122,789' 119,765' 116,145 65 Banks 87,274 72,842 76,452 58,986 70,189 73,773 63,262 63,908 66,005 56,917 66 Official institutions 19,564 15,183 16,750 14,791 17,343 16,665 15,864 18,398 19,803 20,350 67 Nonbank foreigners 73,364 71,631 84,057 98,778 100,075 101,647 97,720 95,812 95,674' 96,277 68 Other liabilities 21,496 20,584 27,777 37,785 38,758 38,206 35,138' 37,221' 37,871' 38,105 69 Total payable in U.S. dollars 361,438 367,483 396,613 383,522 383,793' 380,542 381,365' 372,61c 359,437 371,848 70 Negotiable CDs 26,768 24,045 19,619 14,094 15,142' 14,446 15,335 14,882 13,208 12,620 71 To United States 148,442 173,190 187,286 175,654 171,586' 174,602 173,62C 168,808' 159,922' 175,034 72 Parent bank 81,783 107,150 132,563 130,510 125,464' 124,963 121,505' 117,297 110,303' 120,215 73 Other banks in United States 18,951 13,468 10,519 6,052 7,627 8,715 9,416' 8,509 7,666 10,712 74 Nonbanks 47,708 52,572 44,204 39,092 38,495 40,924 42,699' 43,002' 41,953' 44,107 75 To foreigners 177,711 160,766 176,460 179,002 182,131 175,761 177,902 173,589 171,21C 170,317 76 Other branches of parent bank ... 90,469 84,021 87,636 98,128 94,765 87,288 93,910 88,299 85,857' 84,871 77 Banks 35,065 28,493 30,537 20,251 23,661 25,536 23,769 22,892 21,689 21,200 78 Official institutions 12,409 8,224 9,873 7,921 10,585 10,021 9,205 11,568 12,339 13,978 79 Nonbank foreigners 39,768 40,028 48,414 52,702 53,120 52,916 51,018 50,830 51,325' 50,268 80 Other liabilities 8,517 9,482 13,248 14,772 14,934 15,733 14,508' 15,331' 15,097' 13,877 United Kingdom 81 Total, all currencies 158,695 156,835 161,947 184,818 184,274' 180,211 175,638' 168,917 168,646 165,415 82 Negotiable CDs 26,988 24,528 20,056 14,256 14,873' 14,363 15,820 15,162 13,436 12,196 83 To United States 23,470 36,784 36,036 39,928 33,845' 34,070 35,066' 28,450 28,618 31,061 84 Parent bank 13,223 27,849 29,726 31,806 25,004' 25,670 26,826' 21,676 19,951 23,215 85 Other banks in United States 1,536 2,037 1,256 1,505 1,861 1,401 1,230 1,175 1,413 1,092 86 Nonbanks 8,711 6,898 5,054 6,617 6,980 6,999 7,010 5,599 7,254 6,754 87 To foreigners 98,689 86,026 92,307 108,531 113,754 110,454 105,090 103,976 104,372 99,751 88 Other branches of parent bank 33,078 26,812 27,397 36,709 34,547 30,978 33,084 31,860 30,155 29,371 89 Banks 34,290 30,609 29,780 25,126 31,765 32,784 26,609 27,001 28,492 23,032 9 9 9 0 1 2 Ot O N he f o r f n ic l b i i a a a b l n i k i l n it s f i t o e i r s t e u i t g io n n e s r s 2 1 9 0 1 , , , 5 3 0 4 0 1 8 6 5 2 7 9 0 , , , 4 7 8 9 3 7 7 2 3 2 1 8 6 3 , , , 5 5 5 5 7 4 1 9 8 2 3 2 8 8 , , , 3 1 3 6 0 3 1 3 5 3 2 1 7 1 0 , , , 0 8 3 7 0 6 4 2 8 2 3 9 1 6 , , , 7 3 94 4 2 7 5 4 3 1 8 6 9 , , , 4 9 6 2 6 6 8 9 2 3 2 1 3 1 1 , , , 8 3 3 1 2 0 5 9 0 3 2 1 3 2 2 , , , 3 2 3 8 2 4 3 0 2 2 3 1 2 4 3 , , , 4 3 0 0 2 1 7 9 9 93 Total payable in U.S. dollars 102,550 105,907 108,178 116,094 113,765' 112,284 112,981' 106,568 104,074 104,386 94 Negotiable CDs 24,926 22,063 18,143 12,710 13,388' 12,790 13,816 13,291 11,560 10,833 95 To United States 17,752 32,588 33,056 34,697 28,511' 29,646 30,779' 24,690 24,245 27,083 9 9 9 8 6 7 N P O a o t r h n e e b n r a t b n b a k a n s n k k s in United States 1 4 1 2 , , , 4 3 0 1 0 2 8 8 6 2 4 6 1 , , , 4 4 7 3 0 5 2 4 2 2 3 8 1 , , , 1 8 0 7 1 6 9 2 5 2 3 9 1 , , , 5 9 1 8 5 5 6 5 6 2 3 3 1 , , , 8 3 3 4 2 4 5 4 2 ' 2 4 4 , , 3 3 9 9 2 3 0 6 0 2 4 5 , , 5 8 4 2 0 5 9 0 0 ' 2 3 0 , , 4 3 8 5 9 4 1 1 8 1 4 1 8 , , , 7 0 4 8 0 5 6 2 7 2 4 1 , , 3 8 8 6 2 9 6 5 2 99 To foreigners 55,919 47,083 50,517 60,014 63,702 60,977 59,985 59,440 58,899 58,112 100 Other branches of parent bank 22,334 18,561 18,384 25,957 24,954 21,339 24,049 22,452 21,671 20,452 101 Banks 15,580 13,407 12,244 9,488 11,539 12,976 10,112 9,931 9,704 8,796 102 Official institutions 7,530 4,348 5,454 4,692 7,158 6,587 6,188 8,239 8,914 10,038 103 Nonbank foreigners 10,475 10,767 14,435 19,877 20,051 20,075 19,636 18,818 18,610 18,826 104 Other liabilities 3,953 4,173 6,462 8,673 8,164 8,871 8,401 9,147 9,370 8,358 Bahamas and Caymans 105 Total, all currencies 160,321 170,639 176,006 162,316 167,306 168,209 163,315 164,565 158,506 168,389 106 Negotiable CDs 885 953 678 646 654 629 729 674 694 696 107 To United States 113,950 122,332 124,859 114,738 120,691 122,231 118,72c 120,997' 114,886' 125,377 108 Parent bank 53,239 62,894 75,188 74,941 80,567 78,173 72,382' 73,801 71,239' 76,100 109 Other banks in United States 17,224 11,494 8,883 4,526 5,655 7,618 8,210' 7,543 6,408 9,534 110 Nonbanks 43,487 47,944 40,788 35,271 34,469 36,440 38,128' 39,653' 37,239' 39,743 111 To foreigners 43,815 45,161 47,382 44,444 42,850 42,472 41,66c 40,289' 40,629' 40,180 112 Other branches of parent bank 19,185 23,686 23,414 24,715 23,099 22,923 22,303' 21,645' 22,017' 21,701 113 Banks 10,769 8,336 8,823 5,588 6,030 6,105 6,232 5,837 5,765 5,734 114 Official institutions 1,504 1,074 1,097 622 811 728 674 676 736 931 115 Nonbank foreigners 12,357 12,065 14,048 13,519 12,910 12,716 12,451 12,131 12,111' 11,814 116 Other liabilities 1,671 2,193 3,087 2,488 3,111 2,877 2,206' 2,605' 2,297' 2,136 117 Total payable in U.S. dollars ... 152,927 162,950 171,250 157,132 162,118 162,850 158,172' 160,284' 154,281 164,101 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • October 1991 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1990 1991 IItteemm 11998888 11998899 Dec. Jan. Feb. Mar. Apr. May' June" 1 Total1 304,132 312,477 344,386 352,692 362,260 349,995 344,577r 350,912 346,140 By type 2 Liabilities reported by banks in the United States 31,519 36,496 39,765 41,464 43,309 42,266 39,061r 41,812 40,385 3 U.S. Treasury bills and certificates3 103,722 76,985 79,447 83,695 83,963 84,013 81,110 82,444 84,636 U.S. Treasury bonds and notes 152,429 179,269 202,438 205,145 212,154 200,154 201,036r 203,062 197,542 5 Nonmarketable 523 568 4,491 4,521 4,550 4,580 4,610 4,642 4,672 6 U.S. securities other than U.S. Treasury securities 15,939 19,159 18,245 17,867 18,284 18,982 18,760 18,952 18,905 By area 123,229 132,849 167,141 169,141 174,119 166,466 162,962' 166,880 163,641 8 Canada 9,513 9,482 8,672 8,179 7,900 8,467 8,454 9,433 9,155 9 Latin America and Caribbean 10,553 9,313 21,115 21,957 23,716 24,649 25,378 27,756 29,423 10 Asia 151,887 153,338 138,071 143,260 146,186 139,7% 137,659' 136,585 133,818 1,403 1,030 1,433 1,659 1,439 1,802 1,171 1,184 1,254 12 Other countries 7,548 6,469 7,955 8,497 8,897 8,814 8,953 9,073 8,851 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 Treasury Department data and on data reported to the of foreign countries. Treasury Department by banks (including Federal Reserve Banks) and securities 4. Excludes notes issued to foreign official nonreserve agencies. Includes dealers m the United 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/ 55,438 74,980 67,835 68,650 71,028 70,276 64,322 51,271 68,983 65,127 66,780 68,675 66,558 67,599 18,861 25,100 20,491 22,210 27,206 29,651 27,624 32,410 43,884 44,636 44,569 41,470 36,907 39,975 551 364 33,,550077 22,,661122 22,,884433 1100,,559944 7,357 1. Data on claims exclude foreign currencies held by U.S. monetary author- 2. Assets owned by customers of the reporting bank located in the United ities. States that represent claims on foreigners held by reporting banks for the accounts of the domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A59 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 1990 1991 HHoollddeerr aanndd ttyyppee ooff lliiaabbiilliittyy 11998888 11998899 11999900 Dec. Jan. Feb. Mar. Apr. May June" 1 All foreigners 685,339 736,878 752,916 752,916 752,864 757,916 747,913 731,745' 726,016' 722,786 7 Banks' own liabilities 514,532 577,498 576,195 576,195 568,974 574,913 569,037 561,102' 555,329' 549,725 3 Demand deposits 21,863 22,032 21,724 21,724 19,686 20,144 20,268 19,750' 18,858' 18,996 4 Time deposits 152,164 168,780 168,245 168,245 159,248 162,354 163,971 157,171 152,254' 148,883 5 Other. 51,366 67,823 65,652 65,652 75,723 74,016 71,734 73,75C 72,468' 65,269 6 Own foreign offices 289,138 318,864 320,575 320,575 314,317 318,399 313,063 310,430' 311,748' 316,578 7 Banks' custody liabilities5 170,807 159,380 176,721 176,721 183,890 183,003 178,876 170,643 170,687 173,061 8 U.S. Treasury bills and certificates 115,056 91,100 96,808 96,808 104,493 103,948 102,145 97,378 98,087 100,579 9 Other negotiable and readily transferable instruments7 16,426 19,526 17,472 17,472 17,955 18,190 17,485 16,332' 16,723 17,403 10 Other 39,325 48,754 62,441 62,441 61,442 60,865 59,246 56,933' 55,876 55,079 11 Nonmonetary international and regional organizations 3,224 4,894 5,918 5,918 7,908 6,555 6,669 6,237 66,,004488'' 55,,991177 12 Banks' own liabilities 2,527 3,279 4,540 4,540 6,431 4,092 4,806 5,061 4,667' 3,862 13 Demand deposits 71 96 36 36 67 40 73 76 24 25 14 Time deposits 1,183 927 1,050 1,050 1,600 1,684 2,034 1,980 2,142 2,010 15 Other 1,272 2,255 3,455 3,455 4,763 2,368 2,700 3,006 2,501' 1,827 16 Banks' custody liabilities5 698 1,616 1,378 1,378 1,478 2,462 1,863 1,176 1,381 2,054 17 U.S. Treasury bills and certificates6 57 197 364 364 423 1,620 1,103 275 662 1,287 18 Other negotiable and readily transferable instruments 641 1,417 1,014 1,014 1,005 842 760 901 719 767 19 Other 0 2 0 0 50 0 0 0 0 0 20 Official institutions9 135,241 113,481 119,212 119,212 125,159 127,271 126,280 120,171' 124,257' 125,021 n?1 Ba D n e k m s' a o n w d n d e li p a o b s il i i t t s i es 27 1 , , 1 9 0 1 9 7 3 2 1 , , 1 1 9 0 6 8 34 1 , , 7 9 9 2 2 4 34 1 , , 7 9 9 2 2 4 37 1 , , 3 6 4 6 5 4 38 1 , , 8 5 7 7 8 9 38 1 , , 5 6 9 4 2 5 36 1 , ,6 0 3 9 3 6 ' 38 1 , ,4 4 4 6 4 3 ' 36 1 , , 1 5 0 3 0 6 ?3 Time deposits 9,767 10,495 14,265 14,265 11,659 13,426 13,946 13,546' 14,436' 14,450 24 Other. 15,425 18,417 18,603 18,603 24,022 23,873 23,000 20,917' 22,583' 20,114 75 Banks' custody liabilities5 108,132 82,373 84,420 84,420 87,814 88,393 87,688 84,076 85,794 88,921 26 U.S. Treasury bills and certificates 103,722 76,985 79,447 79,447 83,695 83,963 84,013 81,110 82,444 84,636 27 Other negotiable and readily transferable instruments7 4,130 5,028 4,770 4,770 3,939 4,057 3,582 2,835 3,197 4,018 28 Other 280 361 203 203 180 374 92 130 152 267 29 Banks10 459,523 515,275 534,143 534,143 521,444 527,740 520,069 509,598' 499,647' 498,925 30 Banks' own liabilities 409,501 454,273 457,535 457,535 445,772 451,031 445,588 439,018' 431,122' 431,846 31 Unaffiliated foreign banks 120,362 135,409 136,960 136,960 131,455 132,633 132,525 128,587' 119,374' 115,268 3? Demand deposits 9,948 10,279 10,053 10,053 9,003 9,522 10,050 9,073' 8,674' 8,581 33 Time deposits 80,189 90,557 88,847 88,847 81,583 82,468 84,119 79,232' 72,658' 70,426 34 Other. 30,226 34,573 38,060 38,060 40,869 40,643 38,357 40,282' 38,043' 36,261 35 Own foreign offices 289,138 318,864 320,575 320,575 314,317 318,399 313,063 310,430' 311,748' 316,578 36 Banks' custody liabilities5 50,022 61,002 76,608 76,608 75,672 76,709 74,481 70,581 68,525 67,078 37 U.S. Treasury bills and certificates6 7,602 9,367 10,634 10,634 10,174 11,136 10,645 10,026 8,714 8,199 38 Other negotiable and readily transferable instruments7 5,725 5,124 5,240 5,240 5,950 6,351 6,293 5,973' 5,729 5,475 39 Other 36,694 46,510 60,735 60,735 59,548 59,222 57,543 54,582' 54,083 53,404 40 Other foreigners 87,351 103,228 93,642 93,642 98,352 96,350 94,896 95,738' 96,064' 92,924 41 Banks' own liabilities 75,396 88,839 79,328 79,328 79,427 80,911 80,051 80,927' 81,077' 77,917 47. Demand deposits 9,928 9,460 9,711 9,711 8,952 9,004 8,500 8,969' 8,717 8,853 43 Time deposits 61,025 66,801 64,083 64,083 64,406 64,775 63,873 62,413 63,018' 61,997 44 Other 4,443 12,577 5,534 5,534 6,068 7,132 7,678 9,545' 9,342' 7,067 45 Banks' custody liabilities5 11,956 14,389 14,314 14,314 18,926 15,439 14,845 14,810 14,987 15,007 46 U.S. Treasury bills and certificates6 3,675 4,551 6,363 6,363 10,201 7,230 6,384 5,966 6,267 6,456 47 Other negotiable and readily transferable instruments7 5,929 7,958 6,448 6,448 7,062 6,940 6,850 6,624 7,078 7,143 48 Other 2,351 1,880 1,503 1,503 1,664 1,269 1,611 2,221 1,642 1,408 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 6,425 7,203 7,022 7,022 6,966 6,720 7,157 7,269 7,511 7,626 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 • October 1991 3.17—Continued 1990 1991 AArreeaa aanndd ccoouunnttrryy 11998888 11998899 11999900 Dec. Jan. Feb. Mar. Apr. May June" 1 Total 685,339 736,878 752,916 752,916 752,864 757,916 747,913 731,745r 726,016' 722,786 2 Foreign countries 682,115 731,984 746,998 746,998 744,956 751,361 741,245 725,507r 719,968' 716,870 3 Europe 231,912 237,501 254,460 254,460 247,705 250,091 249,956 241.65T 238,107' 236,542 4 Austria 1,155 1,233 1,229 1,229 1,570 1,522 1,494 1,147 1,008 1,070 5 Belgium-Luxembourg 10,022 10,648 12,399 12,399 12,382 12,559 12,238 12,410 11,695' 11,868 6 Denmark 2,200 1,415 1,399 1,399 1,115 1,013 983 945 988 1,370 7 Finland 285 570 602 602 404 489 662 724 453 832 8 France 24,777 26,903 30,946 30,946 29,371 27,892 28,211 26,97c 26,27C 26,282 9 Germany 6,772 7,578 7,281 7,281 8,262 9,605 8,988 8,441' 8,493' 7,823 10 Greece 672 1,028 934 934 895 797 747 809' 785 790 11 Italy 14,599 16,169 17,736 17,736 16,157 17,506 17,367 15,045 14,725' 14,347 12 Netherlands 5,316 6,613 5,375 5,375 5,680 6,397 6,204 6,773 6,686' 6,099 13 Norway 1,559 2,401 2,358 2,358 2,181 2,078 2,121 1,099 1,168 1,927 14 Portugal 903 2,418 2,958 2,958 2,877 2,684 2,778 2,628 2,41C 2,391 15 Spain 5,494 4,364 7,544 7,544 8,813 8,073 9,784 10,006 10,095' 9,388 16 Sweden 1,284 1,491 1,837 1,837 1,290 759 1,159 720 525 745 17 Switzerland 34,199 34,496 36,915 36,915 35,572 37,209 38,546 36,711 34.88C 37,397 18 Turkey 1,012 1,818 1,169 1,169 1,124 1,195 1,480 1,490 1,535' 1,831 19 United Kingdom 111,811 102,362 109,496 109,496 102,363 103,846 102,973 101,484r 99,655' 98,298 20 Yugoslavia 529 1,474 928 928 1,030 959 848 1,034 953 938 21 Other Western Europe1 8,598 13,563 11,689 11,689 14,352 12,806 10,545 10,34c 12,812' 10,039 22 U.S.S.R 138 350 119 119 196 88 106 138 250 178 23 Other Eastern Europe 591 608 1,546 1,546 2,071 2,614 2,722 2,740 2,721 2,928 24 Canada 21,062 18,865 20,332 20,332 19,218 23,839 23,445 23,254 22,734 23,844 25 Latin America and Caribbean 271,146 311,028 326,351 326,351 332,135 335,679 325,786 325,349'' 328,792' 328,521 26 Argentina 7,804 7,304 7,366 7,366 7,659 7,679 7,872 7,708 7,595 7,521 27 Bahamas 86,863 99,341 107,386 107,386 105,028 102,264 %,289 %,307 97,486' %,849 28 Bermuda 2,621 2,884 2,809 2,809 3,104 3,008 2,838 2,753' 3,057' 2,917 29 Brazil 5,314 6,351 5,853 5,853 5,975 6,310 6,489 5,821 5,773 5,766 30 British West Indies 113,840 138,309 140,720 140,720 148,187 154,294 150,581 150,840' 151,523' 150,988 31 Chile 2,936 3,212 3,145 3,145 3,188 3,063 2,995 3,107 3,240 3,233 32 Colombia 4,374 4,653 4,492 4,492 4,466 4,308 3,786 4,348 4,409 4,467 33 Cuba 10 10 11 11 18 8 7 8 10 7 34 Ecuador 1,379 1,391 1,379 1,379 1,359 1,332 1,319 1,260 1,293 1,288 35 Guatemala 1,195 1,312 1,541 1,541 1,563 1,580 1,617 1,571 1,595 1,664 36 Jamaica 269 209 257 257 224 256 268 233 237 272 37 Mexico 15,185 15,423 16,625 16,625 16,938 17,144 17,405 17,508' 18,657 19,553 38 Netherlands Antilles 6,420 6,310 7,381 7,381 7,139 6,970 6,600 6,898 5,986 5,958 39 Panama 4,353 4,362 4,575 4,575 4,345 4,351 4,454 4,293 4,552 4,676 40 Peru 1,671 1,984 1,295 1,295 1,347 1,324 1,364 1,428 1,413 1,342 41 Uruguay 1,898 2,284 2,520 2,520 2,5% 2,639 2,509 2,463 2,475 2,573 42 Venezuela 9,147 9,482 12,219 12,219 11,944 12,095 12,266 11,833 12,666 12,586 43 Other 5,868 6,206 6,779 6,779 7,053 7,055 7,127 6,969 6,825 6,860 44 Asia 147,838 156,201 136,780 136,780 135,951 132,375 133,041 126,7%' 121,679' 119,917 China 45 Mainland 1,895 1,773 2,421 2,421 2,866 2,720 3,030 2,415 2,446' 2,375 46 Taiwan 26,058 19,588 11,244 11,244 10,920 11,141 11,295 11,001 10,649' 9,853 47 Hong Kong 12,248 12,416 12,700 12,700 14,872 14,794 15,748 16, MB' 15.01C 14,575 48 India 699 780 1,233 1,233 1,472 1,628 1,174 986 766 1,958 49 Indonesia 1,180 1,281 1,238 1,238 1,191 1,719 1,941 1,309 1,303 1,612 50 Israel 1,461 1,243 2,767 2,767 2,823 2,509 2,%5 2,849 2,609 2,355 51 Japan 74,015 81,184 67,075 67,075 63,452 61,093 56,820 53,172' 52,031' 51,531 57 Korea 2,541 3,215 2,280 2,280 2,406 2,186 2,213 2,887 2,193' 2,102 53 Philippines 1,163 1,766 1,585 1,585 1,455 1,655 1,609 1,681 1,521 1,587 54 Thailand 1,236 2,093 1,443 1,443 2,228 2,148 2,403 2,571 2,502 2,386 55 Middle-East oil-exporting countries3 12,083 13,370 15,829 15,829 14,720 13,693 15,642 14,655 14,09C 13,326 56 Other 13,260 17,491 16,965 16,965 17,547 17,091 18,199 17,162' 16,56C 16,256 57 Africa 3,991 3,824 4,630 4,630 5,173 5,153 4,908 4,495 4,695 4,167 58 Egypt 911 686 1,425 1,425 1,476 1,416 1,449 927 1,364 998 59 Morocco 68 78 104 104 107 90 91 89 97 122 60 South Africa 437 206 228 228 212 317 312 220 202 241 61 Zaire 85 86 53 53 55 50 52 50 52 45 62 Oil-exporting countries 1,017 1,121 1,110 1,110 1,508 1,528 1,370 1,434 1,140 1,105 63 Other 1,474 1,648 1,710 1,710 1,815 1,751 1,634 1,776 1,839 1,655 64 Other countries 6,165 4,564 4,445 4,445 4,774 4,224 4,109 3,963 3,%2 3,880 65 Australia 5,293 3,867 3,807 3,807 3,883 3,434 3,131 3,118 3,232 3,097 66 All other 872 697 637 637 891 790 978 845 730 783 67 Nonmonetary international and regional organizations 3,224 4,894 5,918 5,918 7,908 6,555 6,669 6,237 6,048' 5,917 68 International 2,503 3,947 4,390 4,390 6,428 4,880 5,108 4,895 4,633' 4,025 69 Latin American regional 589 684 1,048 1,048 975 1,235 1,170 913 802 1,410 70 Other regional6 133 263 479 479 506 440 391 429 614 482 1. Includes the Bank for International Settlements and Eastern European 4. Comprises Algeria, Gabon, Libya, and Nigeria. countries that are not listed in line 23. 5. Excludes "holdings of dollars" of the International Monetary Fund. 2. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania. 6. Asian, African, Middle Eastern, and European regional organizations, 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and except the Bank for International Settlements, which is included in "Other United Arab Emirates (Trucial States). Western Europe." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A61 3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in U.S. Dollars Millions of dollars, end of period 1991 Area and country 1988 1989 Dec. Jan. Feb. Mar. Apr May' 1 Total 491,165 534,492 510,078 510,078 497,886 509,839 495,614 507,001' 501,156 2 Foreign countries 489,094 530,630 505,285 505,285 495,344 505,995 493,114 504,286' 498,454 3 Europe 116,928 119,025 113,043 113,043 108,184 107,614 104,180 100,318r 99,156 2 2 2 2 1 1 1 1 1 1 1 1 1 1 0 4 8 9 1 2 3 5 6 7 0 1 2 3 4 9 5 7 8 6 Y G G T A O U U P F O N S N F D I B S S t o w i r p w u u a r e u t e n t o e . e n a h h S r e a l r g l r t n s i r i e y l t n g k h e t e e m i t w t . o a u m d n e z r r S r c i c e e n s g d i e a u e a e e y a r . a l d E W n a y R n r m l a r l l K a y k a v a e - n s i i n L s a n t d d t e u s g e r x d r n n e o m m E E u b u r o r o u o p r p g e e 3 2 6 1 5 7 8 2 2 3 3 1 1 1 1 1 1 1 , , , , , , , , , , , , , , 7 9 5 5 8 3 4 4 2 4 4 2 2 0 3 7 2 1 9 8 0 4 3 5 4 1 9 3 2 6 3 8 8 6 9 5 5 5 7 2 6 1 6 5 3 5 5 3 9 1 3 3 3 5 0 4 5 2 7 3 6 1 5 6 6 2 6 1 6 1 1 1 1 1 1 1 , , , , , , , , , , , , , , 5 6 1 8 4 6 1 0 4 5 7 3 9 3 9 0 3 7 9 1 2 6 4 6 4 7 7 0 8 1 8 0 2 2 7 2 0 7 3 7 7 2 1 5 6 8 1 9 8 5 2 4 1 7 6 9 2 3 0 9 6 1 6 5 5 3 2 4 2 4 1 1 1 1 , , . , , , , , , , , , 1 0 3 0 4 2 6 4 4 0 4 7 7 2 4 7 1 3 5 5 4 3 4 9 6 5 0 0 4 8 6 2 5 9 9 4 6 9 9 3 7 6 3 3 8 8 5 0 7 2 6 7 1 2 7 2 2 9 7 0 6 1 5 6 4 5 3 2 2 4 1 1 1 1 , , , , . , , , , , , , 1 0 2 6 3 0 4 4 4 7 4 1 7 2 5 5 4 7 0 3 4 3 6 6 0 0 8 4 9 5 9 2 4 5 9 9 9 4 3 6 7 6 6 8 5 0 2 3 3 8 7 7 2 1 2 9 7 7 0 2 6 1 0 6 6 2 3 2 2 5 1 1 1 1 , , , , , , , , , . , . 5 0 1 0 3 1 8 2 6 7 3 0 2 5 3 7 5 5 9 0 3 9 6 6 7 0 7 6 5 7 0 8 1 5 2 0 0 6 4 8 2 4 9 1 3 2 5 4 1 7 6 4 2 3 3 5 5 7 8 3 6 1 0 5 5 2 2 2 3 2 4 1 1 , , , , , , , , , , , 3 9 4 6 3 9 3 6 5 4 4 6 6 2 1 5 3 8 5 5 9 8 0 4 6 3 8 2 7 5 0 0 0 7 9 6 2 5 0 4 7 4 5 4 0 6 0 0 2 2 9 0 0 2 4 6 8 1 1 5 5 1 3 5 3 6 2 3 3 2 1 4 1 1 , , , , , , , , , , , , 8 6 6 3 1 1 5 3 3 2 6 7 9 7 9 1 1 5 3 5 9 0 3 6 0 6 1 3 8 6 9 1 7 4 6 3 8 7 5 8 6 2 7 5 5 5 9 4 1 5 1 5 0 1 7 0 4 3 7 3 5 1 2 5 3 5 2 3 3 1 1 3 1 1 1 , , , , , , , , , , , , , 5 4 2 2 2 4 4 8 6 6 2 9 5 3 3 7 1 0 1 9 5 1 3 3 3 6 9 4 8 0 9 7 3 9 1 1 7 4 6 5 7 8 5 0 2 4 0 0 8 4 8 3 9 2 3 3 2 4 5 c r r ' ' 5 1 0 3 7 2 5 3 1 3 1 1 , , , , , , , , , , 1 4 9 8 6 8 6 9 9 0 4 5 9 7 3 5 9 2 8 9 6 6 8 1 2 4 5 3 9 3 8 9 6 8 2 0 4 6 2 5 4 5 4 6 7 5 2 8 5 6 2 9 2 5 2 9 0 7 0 0 24 Canada 18,889 15,451 16,080 16,080 16,951 19,364 17,062 17,580'' 17,703 25 Latin America and Caribbean 214, 230,438 230,196 230,196 231,387 237,514 233,032 239,873'' 242,886 26 Argentina 11 9,270 6,928 6,928 6,781 6,655 6,535 6,420 6,363 2 2 7 8 B B e a r h m am ud a a s 66, 77 1 , , 9 3 2 1 1 5 7 4 6 , , 0 4 0 9 6 0 7 4 6 , , 0 4 0 9 6 0 79 1 , , 8 7 3 7 4 1 81 3 , , 1 60 4 2 8 73 3 , , 3 8 3 2 8 3 7 4 6 , ,3 9 2 3 1 5 r 7 7 8 , , 1 2 8 3 2 6 2 3 9 0 B B r r a it z i i s l h West Indies 2 5 5 5 , , 2 6 3 8 , , 7 7 4 4 9 9 8 1 7 7 , , 4 9 2 9 9 4 8 1 7 7 , , 4 99 2 4 9 9 1 4 7 , , 2 9 1 5 3 6 9 1 7 7 , , 5 9 0 3 0 5 1 1 0 8 0 , , 3 8 1 8 9 2 1 1 0 6 5 , , 5 0 2 73 3 r ' 1 1 0 5 5 , , 5 5 9 1 3 0 31 Chile 5, 4.353 3,271 3,271 3,225 3,237 3,170 3,050 3,023 32 Colombia 2, 2,784 1 2,585 0 2,585 0 2,555 0 2,528 0 2,441 0 2,334 0 2,281 0 33 Cuba 34 Ecuador 1,688 1,387 1,387 1,361 1,361 1,325 1,326 1,339 35 Guatemala4 197 191 191 193 191 199 208 200 36 Jamaica 297 238 238 243 171 224 196 181 37 Mexico 23,376 14,845 14,845 14,629 14,817 15,077 15,593' 15,160 38 Netherlands Antilles 1,921 7,998 7,998 2,194 1,599 1,298 1.496 1,589 39 Panama 1,740 1,471 1,471 1,534 1,502 1,479 1,475 1,410 40 Peru 771 663 663 656 691 697 670 722 4 4 1 2 V U e ru n g e u zu ay e la 9,6 9 5 2 2 9 2,5 7 6 8 9 6 2,5 7 6 8 9 6 2,1 7 1 6 8 7 2,2 6 5 2 4 6 2,1 5 6 8 8 8 2,2 6 0 2 9 0 2,2 6 2 1 1 5 43 Other Latin America and Caribbean 1,726 1.344 1.344 1,357 1,698 1,468 1,424 1,261 44 Asia 130,881 157,474 138,628 138,628 131,144 134,016 131,273 139,066' 131,288 China 46 Ma T i a n i l w an a d n 4,1 7 8 6 4 2 2,7 6 7 3 6 4 1, 6 93 2 4 0 1, 6 93 2 4 0 1, 5 7 6 7 5 6 1, 4 4 9 7 7 5 1, 7 26 2 4 3 1, 6 6 4 8 1 5 r 1, 5 3 6 9 6 0 4 4 4 5 5 5 5 5 5 5 7 8 9 1 2 3 4 5 0 6 P T J H O M I I I K n s n a h h o t o r i d p d i h a a d n r l i o a i e e a i e d g n l n p r l a a l e e p K n A s i d n E i o s a e i n a a s g s t oil-exporting countries , • 9 1 6 9 0 5 1 1 0 , , , , , , , 1 2 2 1 5 6 8 8 1 1 2 1 1 4 4 7 7 4 6 3 2 3 3 9 8 4 6 3 0 6 1 1 1 1 1 5 1 1 1 0 1 1 , , , , , , , 3 3 6 6 5 1 1 1 3 8 2 4 2 5 9 4 4 2 0 1 3 4 1 4 0 9 8 0 3 1 9 1 1 1 5 0 1 3 0 1 0 , , , , , , , 7 6 1 7 5 2 6 9 7 6 1 0 7 4 4 5 7 4 3 7 2 7 9 7 9 5 3 4 3 4 9 1 1 1 5 0 1 3 0 0 1 , , , , , , , 7 6 1 2 6 7 6 9 7 5 1 0 4 7 4 7 4 5 3 7 2 7 7 9 4 3 9 5 3 4 9 1 0 8 5 8 0 1 1 , , , , , , , 9 9 2 2 6 9 9 0 5 2 6 5 6 5 2 3 8 6 2 3 6 9 6 0 4 1 7 4 6 0 8 1 6 9 8 9 2 1 1 1 , , , , , , , , 0 6 7 8 0 2 7 5 8 0 0 8 9 9 9 6 9 9 4 8 7 8 2 6 6 1 1 0 2 1 8 1 1 9 4 6 2 1 1 1 0 , , , , , , , , 7 2 6 5 9 4 7 3 1 5 2 1 1 4 3 6 5 8 3 0 9 7 4 5 9 4 2 6 6 3 9 1 1 1 6 1 2 0 1 1 1 0 , , , , , , , , 2 5 8 0 2 4 2 8 6 4 2 6 2 7 8 7 6 8 9 4 6 0 9 1 8 6 2 7 1 9 ' ' ' ' 8 1 9 8 5 9 1 1 0 , , , , , , , 8 6 6 4 6 9 4 7 8 1 7 5 1 5 0 8 5 4 2 1 0 8 8 5 8 4 2 7 9 0 57 Africa 5,718 5,890 5,445 5,445 5,439 5,424 5,488 5,355 5,464 58 Egypt 507 502 380 380 384 314 304 304 305 59 Morocco 511 559 513 513 514 511 538 538 603 60 South Africa 1,681 1,628 1,525 1,525 1,517 1,518 1,628 1,627 1,641 61 Zaire 17 16 16 16 17 21 17 18 18 62 Oil-exporting countries6 1,523 1,648 1,486 1,486 1,467 1,478 1,452 1,372 1,365 63 Other 1,479 1,537 1,525 1,525 1,539 1,582 1,547 1.497 1,533 64 Other countries 2,413 2.354 1,893 1,893 2,238 2,063 2,079 2,093 1,957 6 6 5 6 A A l u l s o tr t a h l e i r a 1,5 8 2 9 0 4 1, 5 7 7 8 3 1 1, 4 41 7 3 9 1, 4 4 7 1 9 3 1,6 5 7 6 2 6 1, 5 5 1 4 7 7 1, 6 4 1 68 1 1,5 5 7 2 0 4 1, 4 4 8 7 7 0 67 Nonmonetary international and regional organizations' 2,071 3,862 4,793 •,793 2,542 3,844 2,501 2,715' 2,701 1. Reporting banks include all kinds of depository institutions besides commer- 5. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and cial banks, as well as some brokers and dealers. United Arab Emirates (Trucial States). 2. Includes the Bank for International Settlements and Eastern European 6. Comprises Algeria, Gabon, Libya, and Nigeria. countries not listed in line 23. 7. Excludes the Bank for International Settlements, which is included in 3. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania. "Other Western Europe." 4. Included in "Other Latin America and Caribbean" through March 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • October 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 Dec. Jan. Feb. Mar. Apr/ Mayr Junep 1 Total 555555533333338888888,,,,,,,666666688888889999999 555555599999993333333,,,,,,,000000088888887777777 555555577777776666666,,,,,,,777777799999990000000 555555577777776666666,,,,,,,777777799999990000000 555555555555558888888,,,,,,,111111188888885555555rrrrrrr 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 444444499999991111111,,,,,,,111111166666665555555 555555533333334444444,,,,,,,444444499999992222222 555555511111110000000,,,,,,,000000077777778888888 555555511111110000000,,,,,,,000000077777778888888 497,886 509,839 444444499999995555555,,,,,,,666666611111114444444 507,001 501,156 503,529 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 66666662222222,,,,,,,666666655555558888888 66666660000000,,,,,,,555555511111111111111 44444441111111,,,,,,,777777799999997777777 44444441111111,,,,,,,777777799999997777777 38,872 43,726 44444443333333,,,,,,,888888855555555555555 42,731 38,570 38,425 44 OOwwnn ffoorreeiiggnn ooffffiicceess22 222222255555557777777,,,,,,,444444433333336666666 222222299999996666666,,,,,,,000000011111111111111 333333300000003333333,,,,,,,000000055555554444444 333333300000003333333,,,,,,,000000055555554444444 300,514 306,122 2222222%%%%%%%,,,,,,, 888888899999995555555 303,046 297,177 305,465 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111122222229999999,,,,,,,444444422222225555555 111111133333334444444,,,,,,,888888888888885555555 111111111111117777777,,,,,,,777777799999999999999 111111111111117777777,,,,,,,777777799999999999999 116,664 116,509 111111111111110000000,,,,,,,444444499999997777777 112,541 117,575 114,980 66 DDeeppoossiittss 66666665555555,,,,,,,888888899999998888888 77777778888888,,,,,,,111111188888885555555 66666665555555,,,,,,,222222211111111111111 66666665555555,,,,,,,222222211111111111111 68,564 69,039 66666663333333,,,,,,,000000022222221111111 64,642 68,757 68,130 77 OOtthheerr 66666663333333,,,,,,,555555522222227777777 55555556666666,,,,,,,777777700000000000000 55555552222222,,,,,,,555555588888888888888 55555552222222,,,,,,,555555588888888888888 48,100 47,470 44444447777777,,,,,,,444444477777776666666 47,899 48,818 46,850 88 AAllll ootthheerr ffoorreeiiggnneerrss 44444441111111,,,,,,,666666644444446666666 44444443333333,,,,,,,000000088888885555555 44444447777777,,,,,,,444444422222228888888 44444447777777,,,,,,,444444422222228888888 41,835 43,483 44444444444444,,,,,,,333333366666668888888 48,684 47,834 44,658 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss33...... 44444447777777,,,,,,,555555522222224444444 55555558888888,,,,,,,555555599999994444444 66666666666666,,,,,,,777777711111112222222 66666666666666,,,,,,,777777711111112222222 66666662222222,,,,,,,55555557777777VVVVVVV 8888888,,,,,,,222222288888889999999 11111113333333,,,,,,,000000011111119999999 11111114444444,,,,,,,333333377777775555555 11111114444444,,,,,,,333333377777775555555 11111117777777,,,,,,,000000044444444444444 11 Negotiable and readily transferable 22222225555555,,,,,,,777777700000000000000 33333330000000,,,,,,,999999988888883333333 44444442222222,,,,,,,000000033333330000000 44444442222222,,,,,,,000000033333330000000 33333334444444,,,,,,,555555533333333333333 12 Outstanding collections and other 11111113333333,,,,,,,555555533333335555555 11111114444444,,,,,,,555555599999992222222 11111110000000,,,,,,,333333300000008888888 11111110000000,,,,,,,333333300000008888888 11111110000000,,,,,,,999999999999994444444RRRRRRR 13 MEMO: Customer liability on 11111119999999,,,,,,,555555599999996666666 11111112222222,,,,,,,888888899999999999999 11111113333333,,,,,,,666666655555559999999 11111113333333,,,,,,,666666655555559999999 11111111111111,,,,,,,777777766666666666666 DDoollllaarr ddeeppoossiittss iinn bbaannkkss aabbrrooaadd,, rreeppoorrtteedd bbyy nnoonnbbaannkkiinngg bbuussiinneessss eenntteerrpprriisseess iinn tthhee UUnniitteedd SSttaatteess 45,360 45,509 43,645 43,645 46,776 42,264 41,751r 40,890 39,205 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 235,130 233,184 238,123 207,906 213,258 206,995 198,820 By borrower 2 Maturity of one year or less2 163,997 172,634 178,346 158,603 166,040 165,732 157,799 3 Foreign public borrowers 25,889 26,562 23,916 20,877 21,670 19,283 21,172 4 All other foreigners 138,108 146,071 154,430 137,726 144,369 146,450 136,626 5 Maturity over one year2 71,133 60,550 59,776 49,303 47,218 41,263 41,021 6 Foreign public borrowers 38,625 35,291 36,014 28,132 26,354 22,393 22,377 7 All other foreigners 32,507 25,259 23,762 21,171 20,864 18,870 18,644 By area Maturity of one year or less2 8 Europe 59,027 55,909 53,913 48,997 51,125 49,169 49,521 9 Canada 5,680 6,282 5,910 5,624 5,499 5,439 5,896 10 Latin America and Caribbean 56,535 57,991 53,003 44,312 44,010 49,674 42,597 11 Asia 35,919 46,224 57,755 51,043 56,123 53,138 53,848 12 Africa 2,833 3,337 3,225 2,994 2,954 3,040 3,016 13 All other3 4,003 2,891 4,541 5,633 6,330 5,273 2,919 Maturity of over one year 14 Europe 6,696 4,666 4,121 4,201 4,424 3,869 4,326 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 33,209 31,284 25,964 24,950 17 Asia 3,830 3,613 4,172 5,864 5,664 5,204 5,424 18 Africa 1,747 2,301 2,630 2,744 2,546 2,374 2,417 19 All other3 2,381 501 684 465 266 561 517 1. Reporting banks include all kinds of depository institutions besides commer- 2. Remaining time to maturity. cial banks, as well as some brokers and dealers. 3. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A63 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1-2 Billions of dollars, end of period 1989 1990 1991 AArreeaa oorr ccoouunnttrryy 11998877 1988 Mar. June Sept. Dec. Mar. June Sept. Dec. Mar. 1 Total 382.4 346.3 346.3 340.0 346.5 338.8 333.4 321.4 331.6 316.5 324.5r 159.7 152.7 145.5 145.1 146.4 152.9 146.4 139.3 144.3 131.8 129. lr 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 10.4 10.2 11.1 10.3 9.7 12.6 10.3 10.2 10.6 10.4 10.5 11.2 11.2 11.1 10.6 8.7 6 Italy 7.5 6.8 5.2 6.1 6.8 7.4 5.9 5.4 4.4 5.0 4.0 4.1 2.7 2.8 2.8 2.4 3.1 3.1 2.7 3.8 3.0 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 6.2 6.3 5.6 4.4 3.6 68.8 66.2 65.6 64.5 63.7 67.2 63.9 59.8 62.5 60.7 62.0r 5.5 5.0 4.0 5.1 5.9 5.4 4.7 5.1 5.1 5.9 6.7 29.8 34.9 30.5 30.2 31.0 32.2 32.2 30.1 32.0 23.8 22.9 26.4 21.0 21.1 21.2 21.0 20.7 23.0 22.4 23.1 22.6 23.1 1.9 1.5 1.4 1.7 1.5 1.5 1.5 1.5 1.6 1.4 1.4 1.7 1.1 1.1 1.4 1.1 1.1 1.2 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 1.6 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 8.2 7.8 8.4 8.3 9.0 21 Turkey 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 1.8 2.0 1.8 1.9 25 OPEC countries3 17.4 16.6 16.2 16.1 16.2 17.1 15.5 15.3 14.4 12.8 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 2.5 6.7 1.9 1.9 1.7 1.6 1.9 1.7 1.8 1.8 1.7 1.7 1.7 97.8 85.3 85.9 83.4 81.2 77.5 68.8 66.7 67.1 65.3 66.0 Latin America 9.5 9.0 8.5 7.9 7.6 6.3 5.6 5.2 5.0 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 2233..55 18.8 18.3 17.7 17.2 17.7 12.8 12.6 12.8 13.0 13.1 37 Peru 11..11 .8 .7 .6 .6 .6 .5 .5 .5 .5 .5 2.8 2.6 2.7 2.6 2.9 2.8 2.8 2.3 2.4 2.3 2.3 Asia China .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 6.1 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 46 Thailand .7 1.1 1.0 1.0 1.3 1.3 1.1 1.3 1.5 1.5 1.6 .7 .9 .8 .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 3.3 2.9 2.7 2.3 2.0 53 USSR .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 40.0 41.8 40.9 48.7r 17.3 11.0 15.8 11.0 11.4 5.5 9.2 8.5 8.9 2.8 8.7r .6 .9 l.l .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 10.4 13.0 1.2 1.0 .9 1.0 1.1 2.3 2.6 2.3 2.2 7.9 1.1 3.7 2.5 2.2 1.9 1.5 1.4 1.3 1.4 1.5 1.4 1.6 .1 .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 6.5 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 30.3 33.3 34.5 38.1 40.6 38.1 1. The banking offices covered by these data are the U.S. offices and foreign million to $150 million equivalent in total assets, the threshold now applicable to branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks. 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 in June 1984 reported claims held by foreign branches have been 7. Includes New Zealand, Liberia, and international and regional organizareduced by an increase in the reporting threshold for "shell" branches from $50 tions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 International Statistics • October 1991 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States' Millions of dollars, end of period 1989 1990 1991 TTyyppee aanndd aarreeaa oorr ccoouunnttrryy 11998877 11998888 11998899 Dec. Mar. June Sept. Dec. Mar. 1 Total 28,302 32,952 38,017 38,017 38,076 39,092 43,885 41,788 39,254 2 Payable in dollars 22,785 27,335 33,211 33,211 33,705 34,595 38,744 37,406 35,242 3 Payable in foreign currencies 5,517 5,617 4,805 4,805 4,371 4,4% 5,140 4,382 4,012 By type 4 Financial liabilities 12,424 14,507 17,690 17,690 17,134 18,715 19,616 17,538 16,452 5 Payable in dollars 8,643 10,608 13,830 13,830 13,841 15,336 15,766 14,306 13,765 6 Payable in foreign currencies 3,781 3,900 3,860 3,860 3,292 3,380 3,850 3,232 2,687 7 Commercial liabilities 15,878 18,445 20,327 20,327 20,942 20,376 24,268 24,251 22,802 8 Trade payables 7,305 6,505 7,626 7,626 7,471 6,968 10,081 10,007 8,223 9 Advance receipts and other liabilities 8,573 11,940 12,701 12,701 13,471 13,409 14,188 14,243 14,579 10 Payable in dollars 14,142 16,727 19,381 19,381 19,864 19,260 22,978 23,100 21,478 11 Payable in foreign currencies 1,737 1,717 945 945 1,078 1,117 1,291 1,150 1,325 By area or country Financial liabilities 12 Europe 8,320 9,962 11,615 11,615 11,094 11,759 11,216 9,641 9,072 13 Belgium-Luxembourg 213 289 340 340 318 332 350 344 285 14 France 382 359 258 258 271 171 470 638 578 15 Germany 551 699 475 475 442 557 615 630 570 16 Netherlands 866 880 944 944 900 932 945 973 948 17 Switzerland 558 1,033 541 541 528 552 632 576 577 18 United Kingdom 5,557 6,533 8,846 8,846 8,388 8,851 7,651 5,944 5,547 19 Canada 360 388 601 601 343 297 301 215 264 20 Latin America and Caribbean 21 Bahamas 1,189 839 1,268 1,268 1,815 2,573 3,394 3,239 3,337 22 Bermuda 318 184 157 157 272 249 368 344 342 23 Brazil 0 0 17 17 2 0 0 0 0 24 British West Indies 25 0 0 0 0 0 0 0 0 25 Mexico 778 645 635 635 1,061 1,782 2,409 2,274 2,426 26 Venezuela 13 1 6 6 5 4 4 5 6 0 0 0 0 0 0 0 4 4 27 Asia 28 Japan 2,451 3,312 4,104 4,104 3,775 4,027 4,223 4,032 3,774 29 MMiiddddllee EEaasstt ooiill--eexxppoorrttiinngg ccoouunnttrriieess 2,042 2,563 3,252 3,252 2,737 2,824 3,088 2,853 22,,770011 8 3 2 2 3 5 4 5 11 30 Africa 31 Oil-exporting countries3 4 2 2 2 3 3 2 2 2 1 0 0 0 0 1 0 0 0 32 All other4 100 4 100 100 103 55 479 409 2 Commercial liabilities 33 Europe 5,516 7,319 8,952 8,952 9,198 8,560 9,834 10,292 9,573 34 Belgium-Luxembourg 132 158 179 179 233 297 248 285 248 35 France 426 455 878 878 888 1,049 1,263 1,260 1,209 36 Germany 909 1,699 1,393 1,393 1,174 990 1,052 1,264 1,375 37 Netherlands 423 587 699 699 688 608 701 840 715 38 Switzerland 559 417 641 641 604 628 728 759 655 39 United Kingdom 1,599 2,079 2,620 2,620 2,926 2,439 2,777 2,791 2,733 40 Canada 1,301 1,217 1,124 1,124 1,151 1,179 1,263 1,246 1,226 41 Latin America and Caribbean 864 1,090 1,187 1,187 1,304 1,279 1,555 1,598 1,527 42 Bahamas 18 49 41 41 37 22 18 12 21 43 Bermuda 168 286 308 308 516 412 371 538 494 44 Brazil 46 95 100 100 116 106 126 137 208 45 British West Indies 19 34 27 27 18 29 42 30 35 46 Mexico 189 217 304 304 241 285 506 421 296 47 Venezuela 162 114 154 154 85 119 120 121 108 48 Asia 6,565 6,915 7,193 7,193 7,019 7,084 8,892 8,928 8,222 49 Japan 2,578 3,094 2,917 2,917 2,748 3,189 3,283 3,606 3,467 50 Middle East oil-exporting countries • 1,964 1,385 1,401 1,401 1,393 1,125 2,321 1,701 1,263 51 Africa 574 576 844 844 753 885 1,315 789 648 52 Oil-exporting countries3 135 202 307 307 263 277 593 422 225 53 All other4 1,057 1,328 1,027 1,027 1,517 1,390 1,408 1,397 1,606 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 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 1991 Type, and area or country 1989 Mar. June Sept. Dec. 1 Total 30,964 34,035 31,542 31,542 29,956 31,716 31,086 33,487 2 Payable in dollars 28,502 31,654 29,209 29,209 27,802 29,398 28,691 31,038 3 Payable in foreign currencies 2,462 2,381 2,334 2,334 2,154 2,318 2,395 2,449 By type 4 Financial claims 20,363 21,869 17,721 17,721 16,622 18,079 16,638 18,109 5 Deposits 14,894 15,643 10,400 10,400 10,461 9,885 10,301 11,473 6 Payable in dollars 13,765 14,544 9,473 9,473 9,583 8,815 9,107 10,504 7 Payable in foreign currencies 1,128 1,099 927 927 878 1,070 1,193 969 8 Other financial claims 5,470 6,226 7,322 7,322 6,161 8,194 6,338 6,636 9 Payable in dollars 4,656 5,450 6,568 6,568 5,471 7,460 5,685 5,769 10 Payable in foreign currencies 814 777 754 754 690 733 652 866 11 Commercial claims 10,600 12,166 13,821 13,821 13,334 13,637 14,448 15,378 12 Trade receivables 9,535 11,091 12,203 12,203 11,704 11,909 12,653 13,430 13 Advance payments and other claims . 1,065 1,075 1,618 1,618 1,630 1,728 1,795 1,948 14 Payable in dollars 10,081 11,660 13,168 13,168 12,748 13,123 13,898 14,764 15 Payable in foreign currencies 519 505 653 653 586 514 549 613 By area or country Financial claims 16 Europe 9,531 10,279 7,044 7,044 6,982 9,619 7,989 8,005 17 Belgium-Luxembourg 7 18 28 28 22 126 27 76 18 France 332 203 153 153 203 141 153 366 19 Germany 102 120 192 192 508 93 102 371 20 Netherlands 350 348 303 303 316 340 329 333 21 Switzerland 65 218 95 95 122 137 176 325 22 United Kingdom 8,467 9,039 6,035 6,035 5,589 8,556 6,976 6,276 23 Canada 2,844 2,325 1,904 1,904 1,758 2,036 1,989 2,887 24 Latin America and Caribbean 7,012 8,160 7,590 7,590 6,984 5,479 5,661 5,751 25 Bahamas 1,994 1,846 1,516 1,516 1,662 992 977 1,261 26 Bermuda 7 19 7 7 4 3 4 3 27 Brazil 63 47 224 224 79 84 70 68 28 British West Indies 4,433 5,763 5,431 5,431 4,824 4,003 4,210 4,031 29 Mexico 172 151 94 94 152 153 158 160 30 Venezuela 19 21 20 20 21 20 23 25 31 Asia 879 844 847 847 806 843 771 1,213 32 Japan 605 574 456 456 459 486 472 875 33 Middle East oil-exporting countries' 5 7 6 9 34 Africa 106 140 140 67 62 49 10 12 12 11 7 35 Oil-exporting countries 155 195 195 179 215 36 All other4 Commercial claims 4,180 5,181 6,194 6,194 6,046 6,082 6,502 7,094 37 Europe 178 189 242 242 220 209 189 211 38 Belgium-Luxembourg 650 672 963 963 964 924 1,206 1,302 39 France 562 669 696 696 702 669 638 800 40 Germany 133 212 479 479 453 479 492 552 41 Netherlands 185 344 305 305 270 235 301 299 42 Switzerland 1,073 1,324 1,572 1,572 1,689 1,583 1,674 1,794 43 United Kingdom 44 Canada 936 983 1,079 1,079 1,148 1,147 1,148 1,050 45 Latin America and Caribbean 1,930 2,241 2,178 2,178 2,063 2,207 2,399 2,320 46 Bahamas 19 36 57 57 22 17 25 14 47 Bermuda 170 230 323 323 243 284 340 246 48 Brazil 226 299 293 293 232 235 253 323 49 British West Indies 26 22 36 36 38 47 35 40 50 Mexico 368 461 510 510 526 582 651 646 51 Venezuela 283 227 147 147 189 224 225 190 52 Asia 2,915 2,993 3,560 3,560 3,279 3,446 3,594 4,032 53 Japan 1,158 946 1,197 1,197 1,074 1,097 1,221 1,418 54 Middle East oil-exporting countries' 450 453 518 518 434 417 408 459 55 Africa 401 435 419 419 425 390 373 488 56 Oil-exporting countries3 144 122 108 108 89 97 72 67 57 All other4 238 333 392 392 372 365 432 395 1. For a description of the changes in the International Statistics tables, see 3. Comprises Algeria, Gabon, Libya, and Nigeria. July 1979 Bulletin, p. 550. 4. Includes nonmonetary international and regional organizations. 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 International Statistics • October 1991 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1991 1990 1991 Transactions, and area or country 1989 1990 J J a u n n . e - Dec. Jan. Feb. Mar. Apr. Mayr June" U.S. corporate securities STOCKS 1 Foreign purchases 214,061 173,231 110,840 13,316 10,259 21,691 21,763 20,569' 19,216 17,342 2 Foreign sales 204,114 188,373 100,486 14,573 11,056 20,615 19,393 17,440' 15,884 16,098 3 Net purchases, or sales (-) 9,946 -15,142 10,354 -1,257 -797 1,076 2,370 3,129r 3,332 1,244 4 Foreign countries 10,180 -15,213 10,119 -1,267 -798 1,020 2,369 3,051' 3,277 1,200 5 Europe 481 -8,498 2,577 -487 -600 -1,245 846 1,639' 1,218 719 6 France -708 -1,234 311 -49 -24 27 100 -45 83 170 7 Germany -830 -368 -231 -144 -114 -204 0 13 24 49 8 Netherlands 79 -398 -9 -46 -142 -104 119 30 25 64 9 Switzerland -3,277 -2,867 379 -263 -222 -943 357 552 290 346 10 United Kingdom 3,691 -2,992 1,189 149 -83 27 121 686' 586 -147 11 Canada -881 892 1,984 279 25 469 284 111' 712 383 12 Latin America and Caribbean 3,042 -1,333 1,818 -280 233 937 3 120 240 285 13 Middle East1 3,531 -2,435 -69 -251 -279 675 -30 -182 207 -460 14 Other Asia 3,577 -3,477 3,622 -406 -196 432 1,223 1,236' 828 99 15 Japan 3,330 -2,891 1,269 -382 -271 -366 -2 1,163' 669 76 16 Africa 131 -63 109 -14 33 31 16 0 21 9 17 Other countries 299 -298 79 -108 -13 -279 28 128 51 165 18 Nonmonetary international and regional organizations -234 71 234 9 2 56 1 78 55 44 BONDS2 19 Foreign purchases 120,550 118,755 69,030 10,216 8,859 8,468 14,802 10,291 14,323 12,287 20 Foreign sales 87,376 101,703 57,596 7,890 8,575 9,269 10,608 8,973' 11,546 8,626 21 Net purchases, or sales (-) 33,174 17,052 11,434 2,326 284 -801 4,194 1,318' 2,778 3,661 22 Foreign countries 32,821 17,523 11,450 2,329 103 -723 4,093 l,418r 2,836 3,722 23 Europe 19,064 10,396 7,252 1,361 -130 -1,065 3,271 1,299" 1,766 2,111 24 France 372 373 612 39 31 68 392 34 86 2 25 Germany -238 -377 656 -41 -54 78 238 114 400 -120 26 Netherlands 850 172 218 110 47 1 20 84 21 45 27 Switzerland -511 284 885 45 360 -217 318 -56' 162 318 28 United Kingdom 18,123 10,703 4,259 1,680 -102 -885 1,633 900 959 1,755 29 Canada 1,116 1,906 1,308 -85 71 106 385 247 374 127 30 Latin America and Caribbean 3,686 4,289 1,344 495 -17 439 351 188 -142 524 31 Middle East1 -182 76 208 74 69 -2 -13 -25 20 160 32 Other Asia 9,025 1,104 1,431 486 131 -209 81 -301 831 898 33 Japan 6,292 747 1,245 399 308 -214 162 -240 544 685 34 56 96 19 -9 -15 10 7 8 10 -1 35 Other countries 57 -344 -114 7 -5 -2 10 3 -23 -96 36 Nonmonetary international and regional organizations 353 -471 -15 -2 181 -78 102 -100' -58 -62 Foreign securities 37 Stocks, net purchases, or sales (-)3 -13,120 -8,952 -16,323 -1,831 -404 -3,177 -3,305 -2,540' -3,312 -3,585 38 Foreign purchases 109,792 122,600 54,335 7,263 6,230 10,561 11,095 7,942' 8,558 9,949 39 Foreign sales 122,912 131,552 70,658 9,094 6,634 13,738 14,400 10,482' 11,871 13,534 40 Bonds, net purchases, or sales (-) -5,943 -22,322 -7,305 -4,745 -173 -1,945 -991 -588' -1,987 -1,620 41 Foreign purchases 234,320 314,466 165,700 33,391 27,138 37,202 40,161 20,789' 20,642 19,768 42 Foreign sales 240,263 336,788 173,004 38,136 27,312 39,146 41,152 21,376' 22,629 21,388 43 Net purchases, or sales (—), of stocks and bonds .... -19,063 -31,273 -23,628 -6,576 -577 -5,122 -4,296 -3,128' -5,299 -5,206 44 Foreign countries -19,101 -28,600 -22,055 -5,834 -538 -5,166 -2,845 -3,251' -4,770 -5,486 45 Europe -17,721 -7,999 -7,739 -898 328 -3,139 -340 351 -1,918 -3,021 46 Canada -4,180 -7,502 -5,686 -655 -573 -797 3 -2,290 -943 -1,085 47 Latin America and Caribbean 426 -8,959 -1,230 -2,810 351 314 114 -330' -1,652 -27 48 2,532 -3,824 -7,377 -1,572 -778 -1,793 -2,494 -987 -159 -1,166 49 Africa 93 -137 -130 28 22 30 2 10 4 -198 50 Other countries -251 -179 107 74 113 218 -130 -4 -101 11 51 Nonmonetary international and regional organizations 38 -2,673 -1,572 -742 -39 44 -1,451 123 -529 280 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.- Dec. Jan. Feb. Mar. Apr. Mayr Junep June Transactions, net purchases or sales (-) during period1 1 Estimated total2 54,203 19,687 14,101 5,554 3,144 12,922 -15,574 2,951r 16,415 -5,757 2 Foreign countries2 52,301 19,524 15,130 5,557 4,776 11,462 -14,755 2,583r 16,398 -5,334 3 Europe2 36,286 19,065 1,679 4,258 3,356 2,933 -4,535 -1,358'' 5,513 -4,231 4 Belgium-Luxembourg 1,048 10 600 -105 260 149 115 37 121 -81 5 Germany 7,904 5,829 -6,148 571 -542 -1,691 -3,340 -549 1,433 -1,458 6 Netherlands -1,141 1,077 -1,540 625 300 -85 -607 -292 -61 -794 7 Sweden 693 1,152 -681 721 -661 43 -244 -410 560 31 8 Switzerland 1,098 112 593 200 170 139 470 -622 230 207 9 United Kingdom 20,198 -1,338 3,997 240 2,829 -54 513 260r 1,699 -1,251 10 Other Western Europe 6,508 12,202 4,847 2,006 995 4,432 -1,442 214 1,534 -886 11 Eastern Europe -21 13 11 0 6 0 0 5 -3 3 12 Canada 698 -4,614 9 155 -795 -171 182 566 342 -114 13 Latin America and Caribbean 464 14,980 14,132 830 -4,984 2,802 121 5,561' 10,481 151 14 Venezuela 311 33 -124 1 -153 -1 6 2 2 20 15 Other Latin America and Caribbean -322 4,190 10,345 428 -426 1,593 765 2,969r 5,687 -243 16 Netherlands Antilles 475 10,757 3,911 401 -4,405 1,210 -650 2,590 4,793 374 17 13,297 -11,062 -499 -72 7,019 5,517 -9,984 -2,179 12 -884 18 Japan 1,681 -14,895 -4,103 -2,407 2,244 1,915 -7,016 -3,379 711 1,422 19 116 313 309 -3 78 110 0 16 1 104 20 All other 1,439 842 -501 389 102 269 -540 -22 48 -358 21 Nonmonetary international and regional organizations 1,902 163 -1,029 -4 -1,633 1,461 -819 368r 17 -423 22 International 1,473 287 -1,123 -119 -1,571 1,104 -845 160' 42 -12 23 Latin America regional 231 -2 -11 92 -202 156 5 225 -186 -9 Memo 24 Foreign countries 52,301 19,524 15,130 5,557 4,776 11,462 -14,755 2,583r 16,398 -5,334 25 Official institutions 26,840 23,169 -4,895 7,106 2,707 7,009 -12,000 883 2,025 -5,519 26 Other foreign2 25,461 -3,645 20,025 -1,549 2,069 4,453 -2,755 i,7or 14,372 186 Oil-exporting countries 2/ Middle East3 8,148 -387 -1,898 1,014 523 644 -1,485 -513 -562 -505 28 Africa4 -1 0 20 0 0 21 -6 5 0 0 1. Estimated official and private transactions in marketable U.S. Treasury 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and securities with an original maturity of more than 1 year. Data are based on United Arab Emirates (Trucial States). monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and 4. Comprises Algeria, Gabon, Libya, and Nigeria. notes held by official institutions of foreign countries. 2. Includes U.S. Treasury notes, denominated in foreign currencies, publicly issued to private foreign residents. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 International Statistics • October 1991 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per year Rate on Aug. 31, 1991 Rate on Aug. 31, 1991 Rate on Aug. 31, 1991 CCoouunnttrryy CCoouunnttrryy CCoouunnttrryy Percent e M ffe o c n t t i h v e Percent e M ffe o c n t t i h v e Percent e M ffe o c n t t i h v e 77777.....55555 AAAAAuuuuuggggg..... 11111999999999911111 99999.....00000 MMMMMaaaaarrrrr..... 11111999999999900000 111000...555000 JJJuuulllyyy 111999999000 88888.....00000 AAAAAuuuuuggggg..... 11111999999999911111 GGeerrmmaannyy,, FFeedd.. RReepp.. ooff...... 77777.....55555 AAAAAuuuuuggggg..... 11111999999999911111 777...000 AAAuuuggg... 111999999111 88888.....7777788888 AAAAAuuuuuggggg..... 11111999999999911111 IIttaallyy 1111111111.....55555 MMMMMaaaaayyyyy 11111999999999911111 99999.....00000 MMMMMaaaaayyyyy 11111999999999911111 55555.....55555 JJJJJuuuuulllllyyyyy 11111999999999911111 Netherlands 88888.....00000 AAAAAuuuuuggggg..... 11111999999999911111 1. As of the end of February 1981, the rate is that at which the Bank of France or makes advances against eligible commercial paper and/or government comdiscounts Treasury bills for 7 to 10 days. mercial banks or brokers. For countries with more than one rate applicable to 2. Minimum lending rate suspended as of Aug. 20, 1981. such discounts or advances, the rate shown is the one at which it is understood the NOTE. Rates shown are mainly those at which the central bank either discounts central bank transacts the largest proportion of its credit operations. 3.27 FOREIGN SHORT-TERM INTEREST RATES Averages of daily figures, percent per year 1991 CCoouunnttrryy,, oorr ttyyppee 11998888 11998899 11999900 Feb. Mar. Apr. May June July Aug. 1 Eurodollars 7.85 9.16 8.16 6.60 6.44 6.11 5.94 6.08 6.01 5.65 2 United Kingdom 10.28 13.87 14.73 13.20 12.33 11.90 11.48 11.21 11.04 10.85 3 Canada 9.63 12.20 13.00 10.37 9.97 9.67 9.12 8.83 8.78 8.73 4 Germany 4.28 7.04 8.41 8.96 8.99 9.08 8.98 8.95 9.06 9.23 5 Switzerland 2.94 6.83 8.71 7.81 8.17 8.26 8.10 7.89 7.74 7.80 6 Netherlands 4.72 7.28 8.57 9.01 9.04 9.11 9.05 9.08 9.09 9.27 7 France 7.80 9.27 10.20 9.64 9.34 9.21 9.13 9.59 9.46 9.46 8 Italy 11.04 12.44 12.11 13.31 12.52 11.90 11.46 11.48 11.74 11.86 9 Belgium 6.69 8.65 9.70 9.51 9.28 9.20 9.00 9.08 9.12 9.25 10 Japan 4.43 5.39 7.75 8.01 8.09 7.96 7.82 7.79 7.56 7.31 NOTE. Rates are for three-month interbank loans except for Canada, finance company paper; Belgium, three-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 Country/currency 1988 1989 1990 Apr. May July Aug. 1 Australia/dollar2 78.409 79.186 78.069 77.107 77.947 77.427 75.982 77.156 78.235 2 Austriaj'schiHing 12.357 13.236 11.331 11.341 11.977 12.104 12.538 12.562 12.267 6 4 5 3 D C C B a h e e n l n i g n a m i a d u , a a m r / P k d / . / f o R k r l a . r l / a n o y r c n u e a n 3 6 3 6 1 . . . . 7 7 7 2 4 3 8 3 1 1 5 0 2 4 6 3 3 7 9 1 . . . . 7 3 4 1 6 2 0 8 7 1 9 4 3 0 2 3 4 6 3 1 . . . . 7 1 4 1 9 8 2 6 2 9 4 6 1 9 8 3 5 6 3 1 . . . . 2 1 2 1 3 8 0 5 5 8 6 7 2 6 2 3 6 5 5 1 . . . . 5 2 0 1 1 7 1 5 6 6 7 3 3 7 5 3 5 6 5 1 . . . . 3 5 3 1 2 7 6 4 5 9 3 9 7 3 9 3 5 6 6 1 . . . . 8 3 6 1 6 6 8 4 3 6 9 3 4 7 9 3 5 6 6 1 . . . . 3 9 7 1 6 0 5 4 9 3 1 9 3 0 3 3 5 6 5 1 . . . . 3 7 8 1 7 3 9 4 2 9 0 5 5 6 2 7 Finland/markka 4.1933 4.2963 3.8300 3.8512 3.9925 4.0431 4.2189 4.3295 4.2325 8 France/franc 5.9595 6.3802 5.4467 5.4862 5.7540 5.8282 6.0483 6.0596 5.9244 1 1 1 1 9 0 1 2 3 G G I H I n r e r o e d e r n l i m e a a g c n / a r e d K n u / / d y p o p r / e n u d a e g n c e / r h u d m t o s l c a la h r e mark 1 1 4 1 5 7 1 2 3 2 . . . . . 8 7 4 9 0 0 5 0 9 0 7 7 0 2 0 1 1 6 1 4 7 2 1 6 1 . . . . . 8 8 2 6 8 0 8 1 0 0 0 0 3 8 8 1 1 1 5 6 7 1 7 8 5 . . . . . 7 4 6 5 7 8 9 1 9 6 9 6 2 9 6 1 1 7 1 5 7 4 9 7 1 . . . . . 7 4 2 1 6 9 4 3 6 1 1 3 2 1 2 1 1 1 5 8 7 9 7 4 1 . . . . . 7 1 7 9 7 9 0 0 2 6 3 2 6 9 7 1 1 2 8 5 7 0 8 5 1 . . . . . 5 7 1 6 7 1 7 4 1 8 9 9 9 8 9 1 1 2 4 9 1 7 2 1 5 . . . . . 7 0 6 7 0 3 6 8 6 3 4 2 2 1 8 1 1 2 3 9 5 7 6 5 1 . . . . . 6 7 4 4 7 1 6 8 8 6 1 3 5 0 2 1 1 2 9 5 5 7 2 3 1 . . . . . 8 7 6 7 3 4 6 4 9 8 4 6 3 6 5 14 Italy/lira 1,302.39 1,372.28 1,198.27 1,201.96 1,261.57 1,275.67 1,325.09 1,329.55 1,303.31 15 Japan/yen 128.17 138.07 145.00 137.39 137.11 138.22 139.75 137.83 136.82 16 Malaysia/ringgit 2.6190 2.7079 2.7057 2.7418 2.7498 2.7573 2.7810 2.7868 2.7806 17 Netherlands/guilder.... 1.9778 2.1219 1.8215 1.8174 1.9186 1.9379 2.0085 2.0114 1.9650 18 New Zealand/dollar2 ... 65.560 59.561 59.619 59.389 58.909 58.647 57.645 56.681 57.353 19 Norway /krone 6.5243 6.9131 6.2541 6.2899 6.6198 6.6953 6.9542 6.9627 6.8118 20 Portugal/escudo 144.27 157.53 142.70 140.97 148.00 149.59 156.37 154.20 149.72 21 Singapore/dollar 2.0133 1.9511 1.8134 1.7589 1.7688 1.7688 1.7782 1.7555 1.7269 22 South Africa/rand 2.2770 2.6214 2.5885 2.6636 2.7325 2.7975 2.8625 2.8819 2.8704 23 South Korea/won 734.52 674.29 710.64 727.73 728.36 727.99 727.97 731.76 733.90 24 Spain/peseta 116.53 118.44 101.96 100.21 105.08 106.45 111.18 111.81 108.92 25 Sri Lanka/rupee 31.820 35.947 40.078 40.750 40.836 40.988 41.211 41.213 41.723 26 Sweden/krona 6.1370 6.4559 5.9231 5.9081 6.1145 6.1578 6.4235 6.4609 6.3311 27 Switzerland/franc 1.4643 1.6369 1.3901 1.3918 1.4399 1.4574 1.5297 1.5481 1.5201 28 Taiwan/dollar 28.636 26.407 26.918 27.311 27.333 27.282 27.166 26.982 26.730 29 Thailand/baht 25.312 25.725 25.609 25.447 25.578 25.645 25.766 25.745 25.720 30 United Kingdom/pound 178.13 163.82 178.41 182.14 174.97 172.38 164.97 165.13 168.41 31 M U E ni M te O d States/dollar'... 92.72 98.60 89.09 91.41 92.29 95.18 95.19 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 fluids 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 All Terms of lending at commercial banks August 1990 December 1990 A77 November 1990 April 1991 A73 February 1991 August 1991 A78 May 1991 October 1991 A72 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 table follows. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Special Tables • October 1991 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, May 6-10, 19911 A. Commercial and Industrial Loans Weighted Loan rate (percent) Loans Loans Amount of Average average secured made Partici- Characteristic ( o t f h o l d o u o a s l n a la s n r d s s ) ( o t f h o d s u o iz s l a l e a n r d s s ) maturity2 W av e e ig ra h g te e d Standard coll b a y te ral co u m m n e d m n e t r i t - (p p l e o a r t a c i n o e s n n t ) Days effective3 (percent) (percent) ALL BANKS 1 Overnight6 11,135,173 6.79 .26 62.7 9.7 2 One month and under (excluding overnight) 5,489,162 616 15 7.26 24.1 88.5 12.7 3 Fixed rate 4,038,606 965 15 6.92 19.8 86.3 14.0 4 Floating rate 1,450,555 307 16 8.21 36.0 94.5 9.1 5 Over one month and under a year . 10,211,378 160 115 8.16 48.4 79.2 15.2 6 Fixed rate 5,898,632 203 76 7.56 37.9 76.4 20.6 7 Floating rate 4,312,746 124 168 8.97 62.8 83.0 7.9 8 Demand7 12,313,094 212 8.49 61.7 73.6 4.9 9 Fixed rate 2,112,905 382 7.43 28.9 83.5 5.2 10 Floating rate 10,200,188 194 8.71 68.5 71.6 4.8 11 Total short term 39,148,807 296 7.75 37.7 74.1 10.1 12 Fixed rate (thousands of dollars) .. 23,184,963 571 25 7.07 19.5 72.2 12.8 13 1-99 474,384 14 133 11.19 74.2 32.8 .7 14 100-499 474,294 198 113 9.58 72.7 44.8 3.2 15 500-999 404,528 686 57 7.64 39.6 80.6 14.2 16 1,000-4,999 3,854,614 2,336 33 7.29 29.0 74.7 13.7 17 5,000-9,999 4,186,536 6,560 25 7.15 21.5 77.3 11.3 18 10,000 and over 13,790,607 17,833 16 6.74 12.0 72.0 13.8 19 Floating rate (thousands of dollars) 15,963,844 174 130 8.74 64.0 76.8 6.0 20 1-99 1,811,191 25 164 10.22 83.0 79.4 2.3 21 100-499 3,074,840 198 156 9.68 77.8 83.7 5.6 22 500-999 1,368,116 665 187 9.23 71.1 86.6 9.3 23 1,000-4,999 3,457,228 1,930 127 8.79 61.8 89.3 6.9 24 5,000-9,999 1,534,008 6,754 115 8.46 43.1 75.9 12.0 25 10,000 and over 4,718,461 19,876 81 7.46 54.1 59.4 4.2 Months 26 Total long term 4,170,318 198 69.9 76.5 10.5 27 Fixed rate (thousands of dollars) .. 909,166 105 8.72 59.9 63.8 4.6 28 1-99 150,611 19 11.24 92.1 18.3 .1 29 100-499 102,231 225 9.97 87.9 48.5 8.3 30 500-999 64,693 705 8.98 68.0 68.8 12.6 31 1,000 and over 591,631 3,647 7.84 46.0 77.5 4.3 32 Floating rate (thousands of dollars) 3,261,153 264 9.38 72.6 80.1 12.1 33 1-99 229,482 28 10.64 86.8 54.5 1.9 34 100-499 643,024 201 9.81 82.4 60.8 11.9 35 500-999 267,259 641 9.52 68.0 88.3 16.5 36 1,000 and over 2,121,388 4,187 9.10 68.7 87.7 12.7 Loan rate (percent) Days Effective3 Nominal8 LOANS MADE BELOW PRIME10 37 Overnight6 10,760,370 8,644 6.71 6.50 7.6 62.7 38 One month and under (excluding overnight) 4,621,642 2,841 6.81 6.59 19.5 12.9 39 Over one month and under a year 6,538,416 743 7.09 6.88 34.3 83.7 20.1 40 Demand7 5,017,959 1,520 6.79 6.66 46.6 56.5 3.1 41 Total short term 26,938,386 1,800 28 23.4 42 Fixed rate 21,446,984 2,603 6.81 6.61 16.8 73.1 13.3 43 Floating rate 5,491,402 816 6.92 6.74 49.2 63.4 5.2 Months 44 Total long term 1,022,985 329 7.16 38.4 90.1 45 Fixed rate 490,964 289 7.24 7.06 44.3 85.0 3.7 46 Floating rate .. 532,021 376 7.09 6.88 32.9 94.9 10.1 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A73 4.23—Continued A.—Continued Characteristic A ( o t f h m l o 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 f A 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 a a v e t e i u g r r h a i g t t e e y 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 t c a e n n d t a ) rd c s o L e l c l o b a u a y t r n e e s r d a l c L o u m m m o n a e a d m d n n e e t r s i t - (p P p l e a a o 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 8,237,151 8,244 6.87 7.9 55.4 11.4 2 One month and under (excluding overnight) 3,988,724 2,594 14 7.16 24.1 89.9 13.1 3 Fixed rate 2,973,892 4,907 15 6.93 19.8 87.5 15.4 4 Floating rate 1,014,832 1,089 13 7.83 36.0 97.0 6.4 5 Over one month and under a year . 6,239,985 1,063 96 7.58 48.4 86.5 21.2 6 Fixed rate 4,091,198 2,826 69 7.24 37.9 82.5 27.2 7 Floating rate 2,148,787 486 147 8.24 62.8 94.1 9.8 8 Demand7 7,553,073 406 8.20 61.7 64.6 4.3 9 Fixed rate 1,305,876 1,161 7.38 28.9 85.3 .2 10 Floating rate 6,247,197 358 8.37 68.5 60.3 5.1 11 Total short term 26,018,933 964 36 7.47 37.7 70.8 12.0 12 Fixed rate (thousands of dollars) .. 16,607,763 3,977 22 7.01 19.5 70.2 15.1 13 1-99 31,878 27 122 9.90 74.2 41.8 2.7 14 100-499 116,803 227 77 8.40 72.7 74.7 6.6 15 500-999 211,525 689 55 7.76 39.6 79.8 16.1 16 1,000-4,999 2,702,210 2,417 34 7.41 29.0 74.6 14.1 17 5,000-9,999 3,063,130 6,564 27 7.17 21.5 76.3 13.2 18 10,000 and over 10,482,218 18,138 17 6.82 12.0 67.1 16.1 19 Floating rate (thousands of dollars) 9,411,170 412 104 8.28 64.0 72.0 6.3 20 1-99 437,122 29 154 9.84 83.0 87.6 1.4 21 100-499 1,095,233 202 142 9.46 77.8 89.7 4.7 22 500-999 606,664 663 132 9.18 71.1 90.4 6.3 23 1,000-4,999 1,963,298 1,942 111 8.66 61.8 87.7 8.3 24 5,000-9,999 1,123,836 6,888 115 8.37 43.1 74.5 16.4 25 10,000 and over 4,185,017 21,116 78 7.48 54.1 54.9 3.7 Months 26 Total long term 2,467,207 756 8.84 69.9 91.2 9.1 27 Fixed rate (thousands of dollars) .. 416,369 654 7.97 59.9 84.0 3.9 28 1-99 10,732 30 10.58 92.1 45.4 .0 29 100-499 29,207 216 9.11 87.9 74.2 7.6 30 500-999 32,859 655 9.04 68.0 81.1 19.3 31 1,000 and over 343,572 3,711 7.68 46.0 86.3 2.2 32 Floating rate (thousands of dollars) 2,050,839 781 9.02 72.6 92.7 10.2 33 1-99 36,989 34 9.93 86.8 76.2 6.0 34 100-499 216,532 223 9.63 82.4 81.9 13.2 35 500-999 164,346 680 9.34 68.0 88.1 14.4 36 1,000 and over 1,632,971 5,116 68.7 95.0 9.5 Loan rate (percent) Days Effective3 Nominal8 LOANS MADE BELOW PRIME IU 37 Overnight6 7.952.654 6.79 6.57 5.7 55.5 11.8 38 One month and under (excluding overnight) 3.508.655 5,699 6.85 6.63 19.8 89.3 12.7 39 Over one month and under a year 4,956,159 4,100 7.03 6.83 33.8 85.4 24.2 40 Demand7 3,718,946 4,519 6.73 6.59 54.1 46.3 .5 41 Total short term 20,136,414 5,688 27 6.85 6.65 24.0 67.1 42 Fixed rate 15,771,616 5,950 6.87 6.66 16.4 69.8 15.3 43 Floating rate 4,364,798 4,909 6.76 6.58 51.4 57.3 4.3 Months 44 Total long term 732,539 2,790 32 6.94 6.77 38.5 94.8 45 Fixed rate 276,556 2,468 7.20 7.06 59.0 90.1 2.0 46 Floating rate .. 455,983 3,029 6.78 6.59 26.0 97.7 10.2 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Special Tables • October 1991 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, May 6-10, 1991 '—Continued A. Commercial and Industrial Loans—Continued Characteristic A ( o t f h m o l d o o u o a u s l n n a l s a t n r d o s 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 co L u m m m n o a e d a m d n n e e t i r 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) OTHER BANKS 1 Overnight6 2,898,022 3,729 6.58 13.0 83.5 4.8 2 One month and under (excluding overnight) 1,500,437 204 17 7.53 27.6 84.7 11.7 3 Fixed rate 1,064,714 293 15 6.88 14.9 83.1 10.1 4 Floating rate 435,723 115 24 9.11 58.8 88.9 15.4 5 Over one month and under a year . 3,971,393 69 144 9.06 60.1 67.7 5.8 6 Fixed rate 1,807,434 65 91 8.29 43.9 62.6 5.6 7 Floating rate 2,163,960 72 189 9.70 73.5 72.0 6.0 8 Demand7 4,760,021 121 62.9 87.9 5.8 9 Fixed rate 807,029 183 7.52 38.4 80.4 13.3 10 Floating rate 3,952,992 113 9.25 67.9 89.4 4.3 11 Total short term 13,129,874 125 8.30 47.0 80.4 6.3 12 Fixed rate (thousands of dollars) .. 6,577,200 181 32 7.21 24.9 77.3 6.9 13 1-99 442,506 13 134 11.29 76.0 32.1 .6 14 100-499 357,491 190 121 9.96 80.2 35.1 2.1 15 500-999 193,004 681 59 7.51 39.0 81.4 12.0 16 1,000-4,999 1,152,404 2,164 32 7.01 32.3 74.8 12.7 17 5,000-9,999 1,123,406 6,552 20 7.08 23.6 79.8 6.1 18 10,000 and over 3,308,390 16,929 14 6.47 9.2 87.6 6.3 19 Floating rate (thousands of dollars) 6,552,674 95 161 9.39 69.2 83.6 5.6 20 1-99 1,374,070 24 166 10.34 83.5 76.7 2.6 21 100-499 1,979,607 197 161 9.80 81.6 80.3 6.2 22 500-999 761,452 666 224 9.27 76.2 83.6 11.7 23 1,000-4,999 1,493,930 1,915 152 8.95 64.3 91.5 5.0 24 5,000-9,999 410,172 6,413 116 8.69 24.8 80.0 .0 25 10,000 and over 533,444 13,606 101 7.32 23.6 94.6 8.3 Months 26 Total long term 1,703,111 96 9.81 72.6 55.3 27 Fixed rate (thousands of dollars) .. 492,797 62 9.36 62.0 46.8 5.2 28 1-99 139,879 18 11.29 93.2 16.2 .1 29 100-499 73,024 228 10.31 96.2 38.2 8.5 30 500-999 31,834 766 8.91 70.2 56.0 5.6 31 1,000 and over 248,059 3,562 8.05 33.4 65.3 7.1 32 Floating rate (thousands of dollars) 1,210,314 124 9.99 76.9 58.8 15.3 33 1-99 192,494 27 10.78 89.2 50.3 1.2 34 100-499 420,492 191 9.90 86.0 50.0 11.3 35 500-999 102,913 587 9.81 70.8 88.7 19.8 36 1,000 and over 488,416 2,605 9.81 65.4 63.4 23.5 Loan rate (percent) Days Effective3 Nominal9 LOANS MADE BELOW PRIME11 37 Overnight6 2,807,716 7,967 6.30 13.3 83.1 5.0 38 One month and under (excluding overnight) 1,112,986 1,101 6.70 6.49 18.5 87.1 13.7 39 Over one month and under a year 1,582,257 209 7.28 7.05 35.9 78.4 7.2 40 Demand7 1,299,013 524 6.98 6.84 25.0 85.6 10.7 41 Total short term 6,801,972 595 6.61 21.6 83.1 8.0 42 Fixed rate 5,675,368 1,015 20 6.66 6.46 17.9 82.3 7.9 43 Floating rate 1,126,605 193 146 7.54 7.37 40.6 87.2 Months 44 Total long term 290,445 7.72 7.46 38.1 78.3 6.8 45 Fixed rate 214,408 135 7.28 7.06 25.3 78.4 5.9 46 Floating rate .. 76,037 60 8.94 8.60 74.2 78.1 9.2 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A75 *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

A76 Federal Reserve Board of Governors and Official Staff ALAN GREENSPAN, Chairman WAYNE D. ANGELL DAVID W. MULLINS, JR., Vice Chairman 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 THEODORE E. ALLISON, Assistant to the Board for Federal CHARLES J. SIEGMAN, Senior Associate Director Reserve System Affairs DAVID H. HOWARD, Deputy Associate Director BOB STAHLY MOORE, Special Assistant to the Board DONALD B. ADAMS, Assistant Director DIANE E. WERNEKE, Special Assistant to the Board DALE W. HENDERSON, Assistant Director PETER HOOPER III, Assistant Director LEGAL DIVISION KAREN H. JOHNSON, Assistant Director J. VIRGIL MATTINGLY, JR., General Counsel RALPH W. SMITH, JR. , Assistant Director SCOTT G. ALVAREZ, Associate General Counsel RICHARD M. ASHTON, Associate General Counsel DIVISION OF RESEARCH AND STATISTICS OLIVER IRELAND, Associate General Counsel MICHAEL J. PRELL, Director RICKI R. TIGERT, Associate General Counsel EDWARD C. ETTIN, Deputy Director KATHLEEN M. O'DAY, Assistant General Counsel THOMAS D. SIMPSON, Associate Director MARYELLEN A. BROWN, Assistant to the General Counsel LAWRENCE SLIFMAN, Associate Director DAVID J. STOCKTON, Associate Director OFFICE OF THE SECRETARY MARTHA BETHEA, Deputy Associate Director WILLIAM W. WILES, Secretary PETER A. TINSLEY, Deputy Associate Director JENNIFER J. JOHNSON, Associate Secretary MYRON L. KWAST, Assistant Director BARBARA R. LOWREY, Associate Secretary PATRICK M. PARKINSON, Assistant Director RICHARD C. STEVENS, Assistant Secretary1 M JO A Y R C T E H K A . S Z . IC SC K A L N ER LO , A N, s s A is s t s a is n t t a D nt i r D e i c r t e o c r t or DIVISION OF CONSUMER LEVON H. GARABEDIAN, Assistant Director (Administration) AND COMMUNITY AFFAIRS GRIFFITH L. GARWOOD, Director DIVISION OF MONETARY AFFAIRS GLENN E. LONEY, Assistant Director ELLEN MALAND, Assistant Director DONALD L. KOHN, Director DOLORES S. SMITH, Assistant Director DAVID E. LINDSEY, Deputy Director BRIAN F. MADIGAN, Assistant Director DIVISION OF BANKING RICHARD D. PORTER, Assistant Director SUPERVISION AND REGULATION NORMAND R. V. BERNARD, Special Assistant to the Board WILLIAM TAYLOR, Staff Director OFFICE OF THE INSPECTOR GENERAL DON E. KLINE, Associate Director FREDERICK M. STRUBLE, Associate Director BRENT L. BOWEN, Inspector General WILLIAM A. RYBACK, Deputy Associate Director BARRY R. SNYDER, Assistant Inspector General STEPHEN C. SCHEMERING, Deputy Associate Director RICHARD SPILLENKOTHEN, Deputy Associate Director HERBERT A. BIERN, Assistant Director 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. SUSSAN, Assistant Director LAURA M. HOMER, Securities Credit Officer 1. On loan from the Division of Applications Development and Statistical Services. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A77 JOHN P. LAWARE OFFICE OF DIVISION OF RESERVE BANK OPERATIONS STAFF DIRECTOR FOR MANAGEMENT AND PAYMENT SYSTEMS S. DAVID FROST, Staff Director CLYDE H. FARNSWORTH, JR., Director WILLIAM SCHNEIDER, Special Assignment: DAVID L. ROBINSON, Deputy Director (Finance and Project Director, National Information Center Control) PORTIA W. THOMPSON, Equal Employment Opportunity BRUCE J. SUMMERS, Deputy Director (Payments and Programs Officer Automation) CHARLES W. BENNETT, Assistant Director DIVISION OF HUMAN RESOURCES JACK DENNIS, JR. , Assistant Director MANAGEMENT EARL G. HAMILTON, Assistant Director DAVID L. SHANNON, Director JEFFREY C. MARQUARDT, Assistant Director JOHN R. WEIS, Associate Director JOHN H. PARRISH, Assistant Director ANTHONY V. DIGIOLA, Assistant Director LOUISE L. ROSEMAN, Assistant Director JOSEPH H. HAYES, JR. , Assistant Director FLORENCE M. YOUNG, Assistant Director FRED HOROWITZ, Assistant Director OFFICE OF THE CONTROLLER GEORGE E. LIVINGSTON, Controller STEPHEN J. CLARK, Assistant Controller (Programs and Budgets) DARRELL R. PAULEY, Assistant Controller (Finance) DIVISION OF SUPPORT SERVICES ROBERT E. FRAZIER, Director GEORGE M. LOPEZ, Assistant Director DAVID L. WILLIAMS, Assistant Director OFFICE OF THE DIRECTOR FOR INFORMATION RESOURCES MANAGEMENT STEPHEN R. MALPHRUS, Director MARIANNE M. EMERSON, Assistant Director EDWARD T. MULRENIN, Assistant Director DIVISION OF HARDWARE AND SOFTWARE SYSTEMS BRUCE M. BEARDSLEY, Director DAY W. RADEBAUGH, JR., Assistant Director ELIZABETH B. RIGGS, Assistant Director DIVISION OF APPLICATIONS DEVELOPMENT AND STATISTICAL SERVICES WILLIAM R. JONES, Director ROBERT J. ZEMEL, Associate Director Po KYUNG KIM, Assistant Director RAYMOND H. MASSEY, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

A79 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, Dlinois 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 DAVID P. WARD, Chester, New Jersey MICHAEL M. GREENFIELD, St. Louis, Missouri JOYCE HARRIS, Madison, Wisconsin SANDRA L. WILLETT, Boston, Massachusetts THRIFT INSTITUTIONS ADVISORY COUNCIL MARION O. SANDLER, Oakland, California, President LYNN W. HODGE, Greenwood, South Carolina, Vice President DANIEL C. ARNOLD, Houston, Texas RICHARD A. LARSON, West Bend, Wisconsin JAMES L. BRYAN, Richardson, Texas PRESTON MARTIN, San Francisco, California DAVID L. HATFIELD, Kalamazoo, Michigan RICHARD D. PARSONS, New York, New York ELLIOT K. KNUTSON, Seattle, Washington EDMOND M. SHANAHAN, Chicago, Illinois JOHN WM. LAISLE, Oklahoma City, Oklahoma WOODBURY C. TITCOMB, Worcester, Massachusetts Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 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 foreignFI NANCIAL 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 Short pamphlets suitable for classroom use. Multiple copies are $2.50 each in the United States, its possessions, Canada, available without charge. and Mexico. Elsewhere, $35.00 per year or $3.00 each. ANNUAL STATISTICAL DIGEST 1974-78. 1980. 305 pp. $10.00 per copy. Consumer Handbook on Adjustable Rate Mortgages 1981. 1982. 239 pp. $ 6.50 per copy. Consumer Handbook to Credit Protection Laws 1982. 1983. 266 pp. $ 7.50 per copy. A Guide to Federal Reserve Regulations 1983. 1984. 264 pp. $11.50 per copy. A Guide to Business Credit for Women, Minorities, and Small 1984. 1985. 254 pp. $12.50 per copy. Businesses 1985. 1986. 231 pp. $15.00 per copy. How to File A Consumer Credit Complaint Series on the Structure of the Federal Reserve System 1986. 1987. 288 pp. $15.00 per copy. 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. / (RegularTransactions). 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 followHs ow 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

A81 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 general interest. Requests to obtain single copies of the full text Gregory E. Elliehausen and John D. Wolken. September 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. Staff Studies 1-145 are out of print. 21pp. 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

A82 Index to Statistical Tables References are to pages A3-A75 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Demand deposits—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 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 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) BANKERS acceptances, 9, 22, 23 Discounts and advances by Reserve Banks (See Loans) Bankers balances, 18-20 (See also Foreigners) Dividends, corporate, 34 Bonds (See also U.S. government securities) New issues, 33 EMPLOYMENT, 46 Rates, 23 Eurodollars, 23 Branch banks, 21, 56 Business activity, nonfinancial, 45 FARM mortgage loans, 37 Business expenditures on new plant and equipment, 34 Federal agency obligations, 4,9, 10, 11, 30, 31 Business loans (See Commercial and industrial loans) Federal credit agencies, 32 Federal finance CAPACITY utilization, 47 Debt subject to statutory limitation, and types and ownership Capital accounts of gross debt, 29 Banks, by classes, 18 Receipts and outlays, 27, 28 Federal Reserve Banks, 10 Treasury financing of surplus, or deficit, 27 Central banks, discount rates, 68 Treasury operating balance, 27 Certificates of deposit, 23 Federal Financing Bank, 27, 32 Commercial and industrial loans Federal funds, 6, 17, 19, 20, 21,23, 27 Commercial banks, 16,19, 72-75 Federal Home Loan Banks, 32 Weekly reporting banks, 19-21 Federal Home Loan Mortgage Corporation, 32, 36, 37 Commercial banks Federal Housing Administration, 32, 36, 37 Assets and liabilities, 18-20, 72-75 Federal Land Banks, 37 Commercial and industrial loans, 16,18, 19, 20, 21 Federal National Mortgage Association, 32, 36, 37 Consumer loans held, by type and terms, 38, 39 Federal Reserve Banks Loans sold outright, 19 Condition statement, 10 Nondeposit funds, 17 Discount rates (See Interest rates) Real estate mortgages held, by holder and property, 37 U.S. government securities held, 4, 10, 11, 29 Terms of lending, 72-75 Federal Reserve credit, 4, 5, 10, 11 Time and savings deposits, 3 Federal Reserve notes, 10 Commercial paper, 22, 23, 35 Federal Reserve System Condition statements (See Assets and liabilities) Balance sheet for priced services, 82 Construction, 45, 50 Condition statement for priced services, 83 Consumer installment credit, 38, 39 Federally sponsored credit agencies, 32 Consumer prices, 45, 47 Finance companies Consumption expenditures, 52, 53 Assets and liabilities, 35 Corporations Business credit, 35 Nonfinancial, assets and liabilities, 34 Loans, 38, 39 Profits and their distribution, 34 Paper, 22, 23 Security issues, 33, 66 Financial institutions Cost of living (See Consumer prices) Loans to, 19,20,21 Credit unions, 26, 38. (See also SAIF-insured institutions) Selected assets and liabilities, 25 Currency and coin, 18 Float, 4, 83 Currency in circulation, 4, 13 Flow of funds, 40, 42, 43, 44 Customer credit, stock market, 24 Foreign banks, assets and liabilities of U.S. branches and agencies, 21 DEBITS to deposit accounts, 14 Foreign currency operations, 10 Debt (See specific types of debt or securities) Foreign deposits in U.S. banks, 4, 10, 19, 20 Demand deposits Foreign exchange rates, 69 Banks, by classes, 18-21 Foreign trade, 55 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A83 Foreigners REAL estate loans Claims on, 56, 58, 61, 62,63, 65 Banks, by classes, 16, 19,20, 37 Liabilities to, 20, 55, 56, 58, 59, 64, 66, 67 Financial institutions, 25 Terms, yields, and activity, 36 GOLD Type of holder and property mortgaged, 37 Repurchase agreements, 6, 17, 19, 20, 21 Certificate account, 10 Reserve requirements, 8 Stock, 4,55 Reserves Government National Mortgage Association, 32, 36, 37 Commercial banks, 18 Gross national product, 52 Depository institutions, 3, 4, 5, 12 Federal Reserve Banks, 10 HOUSING, new and existing units, 50 U.S. reserve assets, 55 Residential mortgage loans, 36 INCOME, personal and national, 45, 52,53 Retail credit and retail sales, 38, 39,45 Industrial production, 45, 48 Installment loans, 38, 39 Insurance companies, 25, 29, 37 SAVING Interest rates Flow of funds, 40, 42, 43, 44 Bonds, 23 National income accounts, 52 Commercial banks, 72-75 Savings and loan associations, 37, 38, 40. (See also SAIF-insured Consumer installment credit, 39 institutions) Federal Reserve Banks, 7 Savings Association Insurance Funds (SAIF) insured institutions, 25 Foreign central banks and foreign countries, 68 Savings banks, 25, 37, 38 Money and capital markets, 23 Savings deposits (See Time and savings deposits) Mortgages, 36 Securities (See also specific types) Prime rate, 22 Federal and federally sponsored credit agencies, 32 International capital transactions of United States, 54-68 Foreign transactions, 66 International organizations, 58, 59, 61, 64, 65 New issues, 33 Inventories, 52 Prices, 24 Investment companies, issues and assets, 34 Special drawing rights, 4, 10, 54, 55 Investments (See also specific types) State and local governments Banks, by classes, 18, 19, 20, 21,25 Deposits, 19, 20 Commercial banks, 3, 16, 18-20, 37 Holdings of U.S. government securities, 29 Federal Reserve Banks, 10,11 New security issues, 33 Financial institutions, 25, 37 Ownership of securities issued by, 19, 20, 26 Rates on securities, 23 LABOR force, 46 Stock market, selected statistics, 24 Life insurance companies (See Insurance companies) Stocks (See also Securities) Loans (See also specific types) New issues, 33 Banks, by classes, 18-20 Prices, 24 Commercial banks, 3,16, 18-20 Credit unions, 26 Student Loan Marketing Association, 32 Federal Reserve Banks, 4, 5, 7,10, 11 Financial institutions, 25, 37 TAX receipts, federal, 28 Insured or guaranteed by United States, 36, 37 Thrift institutions, 3. (See also Credit unions and Savings and MANUFACTURING loan associations) Capacity utilization, 47 Time and savings deposits, 3,13, 17,18,19,20,21 Production, 47, 49 Trade, foreign, 55 Margin requirements, 24 Treasury cash, Treasury currency, 4 Member banks (See also Depository institutions) Treasury deposits, 4, 10, 27 Federal funds and repurchase agreements, 6 Treasury operating balance, 27 Reserve requirements, 8 UNEMPLOYMENT, 46 Mining production, 49 U.S. government balances Mobile homes shipped, 50 Commercial bank holdings, 18, 19,20 Monetary and credit aggregates, 3, 12 Treasury deposits at Reserve Banks, 4, 10, 27 Money and capital market rates, 23 U.S. government securities Money stock measures and components, 3, 13 Bank holdings, 18-20, 21, 29 Mortgages (See Real estate loans) Dealer transactions, positions, and financing, 31 Mutual funds, 34 Federal Reserve Bank holdings, 4,10, 11, 29 Mutual savings banks (See Thrift institutions) Foreign and international holdings and transactions, 10, 29, 67 NATIONAL defense outlays, 28 Open market transactions, 9 National income, 52 Outstanding, by type and holder, 25, 26, 29 Rates, 23 OPEN market transactions, 9 U.S. international transactions, 54-68 Utilities, production, 49 PERSONAL income, 53 Prices VETERANS Administration, 36, 37 Consumer and producer, 45, 51 Stock market, 24 WEEKLY reporting banks, 19-21 Prime rate, 22 Wholesale (producer) prices, 45, 51 Producer prices, 45, 51 Production, 45,48 Profits, corporate, 34 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 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 John R.Miller W. LeeHoskins A. William Reynolds William H. Hendricks Cincinnati 45201 Kate Ireland Charles A. Cerino1 Pittsburgh 15230 Robert P. Bozzone Harold J. Swart1 RICHMOND* 23219 Anne Marie Whittemore Robert P. Black Henry J. Faison Jimmie R. Monhollon Baltimore 21203 John R. Hardesty, Jr. Ronald B. Duncan1 Charlotte 28230 Anne M. Allen Albert D. Tinkelenberg1 Culpeper Communications John G. Stoides1 and Records Center 22701 ATLANTA 30303 Larry L. Prince Robert P. Forrestal Edwin A. Huston Jack Guynn Donald E. Nelson1 Birmingham 35283 Roy D. Terry Fred R. 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 JoAnnSlaydon 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. Thomas M. Hoenig Burton A. Dole, Jr. Henry R. Czerwinski Denver 80217 Barbara B. Grogan KentM. Scott Oklahoma City 73125 Ernest L. Holloway David J. France Omaha 68102 Herman Cain Harold L. Shewmaker DALLAS 75222 Hugh G. Robinson Robert D. McTeer, Jr. Leo E. Linbeck, Jr. 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 Patrick K. Barron Los Angeles 90051 Yvonne B. Burke John F.Moore1 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 FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A85 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