Federal Reserve Bulletin, 1992-01
VOLUME 78 • NUMBER 1 • JANUARY 1992 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 L CHANGES IN FAMILY FINANCES FROM 1983 rowers, before the Subcommittee on General TO 1989: EVIDENCE FROM THE SURVEY Oversight and Investigations of the House OF CONSUMER FINANCES Committee on Banking, Finance and Urban Affairs, November 15, 1991. Using data from the 1983 and 1989 Surveys of Consumer Finances, this article looks at alter- 31 John P. La Ware, Member, Board of Governors, ations in the income, assets, and liabilities presents the views of the Board on two legislative of U.S. families and analyzes them according proposals, the Fair Trade in Financial Services to a variety of economic and demographic Act and the Foreign Bank Supervision Enhancecharacteristics. ment Act of 1991, and says that the Board believes that strengthened supervision of foreign 19 TREASURY AND FEDERAL RESERVE banks is in the national interest and also fully FOREIGN EXCHANGE OPERATIONS consistent with the policy of national treatment, before the House Committee on Banking, Fi- The dollar moved irregularly and moderately nance and Urban Affairs, November 20, 1991. lower during the August-October period under review; it eased more than 4 percent against the mark, close to 5 percent against the yen, and 36 ANNOUNCEMENTS about 3% percent on a trade-weighted basis. The Appointment of Lawrence B. Lindsey as a U.S. monetary authorities did not intervene in member of the Board of Governors. foreign exchange markets during the period. Appointment of Susan Meredith Phillips as a member of the Board of Governors. 24 INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION Change in the discount rate. The index of industrial production was un- Increase in the net transaction account to which a changed in October, the third consecutive month 3 percent reserve requirement will apply. with little or no change in the total index. At Revision to Regulation C. 108.2 percent of its 1987 annual average, industrial production in October was 1.6 percent Interpretation to Regulation H. below its year-ago level. Total industrial capacity Publication of the Annual Statistical Digest, utilization decreased 0.2 percentage point in October, to 79.6 percent. 1990. 27 STATEMENTS TO THE CONGRESS 38 RECORD OF POLICY ACTIONS OF THE FEDERAL OPEN MARKET COMMITTEE Richard Spillenkothen, Director, Division of Banking Supervision and Regulation, discusses At its meeting on October 1,1991, the Committhe availability of bank credit and the possible tee adopted a directive that called for maintaining effect of certain bank supervisory policies on the existing degree of pressure on reserve the willingness of banks to lend, and says that positions and that included a slight bias toward prudent lending standards and effective and possible easing during the intermeeting period. timely supervision should not inhibit banking Accordingly, the directive indicated that slightly organizations from playing an active role in greater reserve restraint might be acceptable financing the needs of sound, creditworthy bor- during the intermeeting period or slightly lesser Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
reserve restraint would be acceptable depend- A3 GUIDE TO TABULAR PRESENTATION ing on progress toward price stability, trends in A4 Domestic Financial Statistics economic activity, the behavior of the monetary A44 Domestic Nonfinancial Statistics aggregates, and developments in foreign ex- A53 International Statistics change and domestic financial markets. The reserve conditions contemplated at this meet- A69 GUIDE TO STATISTICAL RELEASES AND ing were expected to be consistent with SPECIAL TABLES growth of M2 and M3 at annual rates of around 3 percent and 1 lh percent respectively over the A72 INDEX TO STATISTICAL TABLES three-month period from September through December. A74 BOARD OF GOVERNORS AND STAFF 45 LEGAL DEVELOPMENTS A76 FEDERAL OPEN MARKET COMMITTEE AND Various bank holding company, bank service STAFF; ADVISORY COUNCILS corporation, and bank merger orders; and pending cases. A78 FEDERAL RESERVE BOARD PUBLICATIONS 105 MEMBERSHIP OF THE BOARD OF A80 FEDERAL RESERVE BANKS, BRANCHES, GOVERNORS OF THE FEDERAL RESERVE AND OFFICES SYSTEM, 1913-92 A8i MAP OF THE FEDERAL RESERVE SYSTEM List of appointive and ex officio members. Ai FINANCIAL AND BUSINESS STATISTICS These tables reflect data available as of November 26, 1991. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Changes in Family Finances from 1983 to 1989: Evidence from the Survey of Consumer Finances Arthur Kennickell and Janice Shack-Marquez, of the With these changes came alterations in the income, Board's Division of Research and Statistics, pre- assets, and liabilities of U.S. families. Using data pared this article. from the 1983 and 1989 Surveys of Consumer Finances, this article looks at those alterations and Between 1983 and 1989, family finances in the analyzes them according to a variety of economic United States were affected by many factors. and demographic characteristics. Several findings Financial deregulation altered the availability and are noteworthy. The small rise in the median values the cost of financial services to consumers. Banks of income and net worth and the simultaneous moved to explicit pricing of checking services and substantial rise in the mean values indicate that the the payment of interest on transactions accounts, distributions of income and net worth became more and money market accounts and other mutual funds concentrated between 1983 and 1989.1 Also, the use became more available. The progressive elimination of debt increased; much of that increase was in families of tax deductions for consumer interest other than reporting the most financial assets.2 the deduction on home mortgages influenced the effective price of borrowing. Other tax changes, such as the elimination of general deductions for individual retirement accounts, altered the return to 1. When the observations in a set of data are arranged in order various forms of saving. of magnitude from lowest to highest, the middle value is the Macroeconomic and demographic changes also median. The sum of all observed values divided by the number of observations in a set of data is the mean. The mean and the affected the financial opportunities for families. In median each have advantages for describing distributions of 1983, the U.S. economy was at the end of a income and other financial variables. Because of the focus on the recession; in 1989, it was near the end of a long ranking of values, the median is not influenced by extremely large values; thus it is a good indicator of the position of the expansion. Over the intervening six years, aggregate "typical" family. However, the mean is a better indicator of the real disposable personal income, as measured in the dollar amount of income or assets held by all families because it National Income and Product Accounts, increased considers all values, the extreme as well as the typical. If the median of a distribution drops, the mean may rise or fall, as may by 21 percent; the price level, as measured by the the means of the upper and lower halves of die distribution. For consumer price index, rose about 25 percent; and, as the variables examined in this article, the mean of the lower half measured in nominal terms by the Federal Reserve of each distribution generally drops when the median does. flow of funds accounts, total assets and net worth for Thus, with before-tax family income, the near-constancy of the median plus the rise in the overall mean implies that the mean the household sector grew 61 percent and 56 percent value of the distribution above the median increased—that is, the respectively. The overall population of households concentration of income increased in the top half of the grew 9 percent; the largest growth was in families distribution. 2. All dollar figures reported in the article are adjusted to 1989 headed by individuals between the ages of 35 and 45 levels using the consumer price index (CPI) for all urban years, a group that tends to have a relatively high consumers. There are problems with the use of any deflator to compare income, assets, and liabilities over time, particularly rate of saving. Other important demographic changes where changes in the interest rate implicitly change the costs of were an increase in the proportion of dual-earner debts. The CPI is used for two reasons. First, it is widely known families from 26 V2 percent of all families in 1983 to and applied. Second, because it is intended to reflect the relative 29 percent in 1989 and a small increase in average costs of a standardized collection of goods and services, it seems a natural indicator of the importance of price level changes for family size. most families. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
2 Federal Reserve Bulletin • January 1992 1. Mean and median before-tax family income, by selected characteristics of families, 1983 and 1989 Thousands of 1989 dollars, except as noted 1983 1989 FFFaaammmiiilllyyy ccchhhaaarrraaacccttteeerrriiissstttiiiccc PPeerrcceenntt Family income PPeerrcceenntt Family income ooff ooff ffaammiilliieess Mean Median ffaammiilliieess Mean Median All families 100 33.4 24.3 100 35.7 24.4 Age of family head (years) Under 35 31 25.8 22.3 26 26.4 20.0 35-44 19 40.9 33.7 23 44.2 35.0 45-54 15 41.9 32.2 14 52.8 36.5 55-64 15 40.6 27.2 15 38.5 25.8 65-74 12 29.8 16.1 13 27.6 16.0 75 and over 7 18.8 9.5 9 20.9 13.0 Education of family head 0-8 grades 15 15.1 11.1 13 16.3 11.2 9-11 grades 13 21.9 17.4 11 20.2 15.0 High school diploma 31 28.6 24.7 32 27.8 22.0 Some college 18 34.2 26.6 15 35.9 27.4 College degree 23 57.9 42.0 29 59.8 40.0 >head [specialities ... 24 59.4 43.6 25 63.8 43.5 Technical, sales, and administrative support 12 33.7 26.3 12 36.5 28.8 Service occupations 7 20.5 17.4 7 19.9 15.0 Precision production, craft, and repair 12 33.5 31.1 12 38.2 35.0 Operators, fabricators, and laborers 12 28.1 24.9 9 28.3 24.0 Fanning, forestry, and fishing 2 30.3 20.5 2 30.4 21.2 Not working 31 18.8 12.5 33 19.5 12.0 Race of family head White 82 36.0 26.2 38.0 26.8 Nonwhite and Hispanic 18 21.4 15.9 19.8 12.0 Life-cycle stage of family head Under 55 years Unmarried, no children 11 21.7 18.1 11 22.5 17.7 Married, no children 6 40.9 34.4 5 46.8 37.8 Unmarried, children 13 20.7 16.2 13 21.4 16.0 Married, children 35 42.1 35.0 34 49.6 39.3 55 years and over In labor force 14 49.9 31.0 12 49.0 28.0 Out of labor force Retired 18 20.9 13.7 18 24.8 16.1 Other 3 14.0 8.7 7 12.7 7.9 Housing status Own 63 40.9 31.1 65 44.4 31.5 Rent or other 37 20.6 16.2 35 19.6 13.9 THE SURVEYS from 1946 through 1970. Another such survey was conducted in 1977 to gather information on the use Widely regarded as a reliable source of data on of consumer credit. The current series of surveys family finances, the Survey of Consumer Finances has been ongoing on a triennial basis since 1983. (SCF) is designed specifically to gather detailed and However, because the SCF conducted in 1986 was comprehensive information on assets, liabilities, limited in scope, this article uses data only from the and income flows from a representative sample of 1983 and 1989 surveys. the population of U.S. families. Because the owner- The data for both these surveys were collected by ship of some assets, such as corporate stocks, is the Survey Research Center at the University of relatively concentrated in a small number of families, Michigan. The 1983 SCF was sponsored by the the survey makes a special effort to ensure proper Federal Reserve in cooperation with several other representation of such assets by systematically agencies. This survey was described and information oversampling wealthier families. from it was reported in previous issues of the Surveys of consumer finances were conducted Federal Reserve Bulletin (September 1984, Decemregularly with support from the Federal Reserve ber 1984, and March 1986). The data reported here Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Changes in Family Finances from 1983 to 1989 3 2. Mean and median net worth, by selected characteristics of families, 1983 and 1989 Thousands of 1989 dollars, except as noted 1983 1989 FFFaaammmiiilllyyy ccchhhaaarrraaacccttteeerrriiissstttiiiccc PPeerrcceenntt Net worth PPeerrcceenntt Net worth ooff ooff ffaammiilliieess Mean Median ffaammiilliieess Mean Median All families 100 149.1 42.7 100 183.7 47.2 Family income (1989 dollars) Less than 10,000 19 30.0 3.8 20 30.1 2.3 10,000-19,999 23 53.0 19.3 20 63.1 27.1 20,000-29,999 19 69.5 36.9 17 89.6 37.0 30,000-49,999 23 117.6 67.7 23 150.2 69.2 50,000 and more 17 550.5 176.1 20 586.7 185.6 Age of family head (years) Under 35 31 40.9 8.5 26 46.9 6.8 35-44 19 110.5 49.8 23 148.3 52.8 45-54 15 215.9 69.4 14 286.4 86.7 55-64 15 242.2 84.4 15 292.5 91.3 65-74 12 272.6 76.3 13 278.3 77.6 75 and over 7 166.8 49.8 9 194.5 66.1 Education of family head 0-8 grades 15 59.0 24.4 13 77.2 27.3 9-11 grades 13 68.2 23.0 11 80.5 27.3 High school diploma 31 103.6 41.8 32 109.6 37.1 Some college 18 172.2 42.3 15 171.9 46.9 College degree 23 297.8 89.5 29 364.6 104.7 Current occupation of family head Managerial and professional specialities 24 328.5 95.8 25 382.0 104.5 Technical, sales, and administrative support— 12 105.1 39.1 12 139.7 32.6 Service occupations 7 33.6 12.1 7 46.1 8.4 Precision production, craft, and repair 12 70.4 40.0 12 91.5 46.0 Operators, fabricators, and laborers 12 49.3 28.6 9 67.3 18.8 Farming, forestry, and fishing 2 343.9 185.0 2 322.3 107.3 Not working 31 110.7 30.0 33 138.9 44.0 Race of family head White 82 173.0 54.3 87 203.8 58.5 Nonwhite and Hispanic 18 37.6 6.9 13 45.9 4.0 Life-cycle stage of family head Under 55 years Unmarried, no children 11 48.9 6.0 11 47.5 8.4 Married, no children 6 80.1 20.1 5 147.9 27.3 Unmarried, children 13 57.8 10.8 13 54.2 5.7 Married, children 35 140.6 51.3 34 196.9 62.0 55 years and over In labor force 14 363.1 108.0 12 438.3 104.5 Out of labor force Retired 18 153.6 63.9 18 211.6 94.1 Other 3 123.8 51.0 7 87.6 33.2 Housing status Own 63 219.6 80.4 65 266.9 97.3 Rent or other 37 26.8 3.0 35 31.2 2.2 for 1983 may differ from the figures reported in the 3. Composition of assets of all families 1983 and 1989 earlier articles because of revisions of the data and of Percent the sample weights. The 1989 SCF was sponsored by the Federal Reserve in cooperation with the Assets 1983 1989 Department of the Treasury, the Department of Financial 222555...666 222777...777 Health and Human Services, the National Institute Nonfinancial 777444...444 777222...333 Vehicles 333...666 333...999 on Aging, the Small Business Administration, the Principal residence 333333...444 333222...222 General Accounting Office, the Comptroller of the Real estate and land investment.. 111666...000 111555...111 Business investment Currency, and the Congressional Joint Committee (excluding real estate) 222000...444 111777...888 Other 111...000 333...333 on Taxation. A technical description of this survey appears in the appendix to this article. Total 111000000...000 111000000...000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
4 Federal Reserve Bulletin • January 1992 4. Ownership of selected financial assets, by selected characteristics of families, 1983 and 1989 Percent 1983 Family characteristic Money Retire- Non- Checking Savings market CDs ment Stocks Bonds taxable Trusts Other Total accounts accounts accounts accounts bonds All families 78.6 61.7 15.0 20.1 24.2 20.4 3.0 2.1 4.0 44.0 87.8 Family income (1989 dollars) Less than 10,000 49.2 36.9 2.7 8.1 1.9 4.4 * * 2.6 22.7 64.0 10,000-19,999 71.7 53.4 9.0 18.4 8.4 10.6 1.6 * 1.9 34.5 84.5 20,000-29,999 83.7 67.2 12.0 19.4 19.8 18.0 1.9 1.0 2.7 45.8 93.7 30,000-49,999 92.4 76.6 17.4 22.7 34.5 25.2 2.4 1.0 4.4 54.5 97.5 50,000 and more 96.0 73.8 37.1 33.1 61.7 48.3 10.0 9.3 9.6 64.6 98.8 Age of family head (years) Under 35 71.9 62.6 8.5 8.6 17.2 12.9 1.0 .2 4.0 36.0 85.0 35-44 82.9 68.4 16.5 15.5 31.0 22.8 2.5 1.7 3.6 50.2 90.1 45-54 81.8 64.9 14.9 18.1 35.5 23.2 3.2 2.1 6.0 48.6 88.7 55-64 81.2 59.0 20.0 20.3 36.3 25.7 4.9 3.0 3.8 47.5 90.1 65-74 82.5 55.4 22.4 36.9 14.8 26.1 6.7 6.1 3.1 49.2 88.2 75 and over 76.2 48.9 15.3 38.3 1.7 19.9 2.2 2.2 2.9 35.4 85.9 Race of family head White 85.5 65.3 17.3 23.4 27.2 23.6 3.6 2.4 4.6 47.9 92.9 Nonwhite and Hispanic 46.4 44.9 4.0 4.2 10.2 5.8 * * 1.4 25.8 64.5 Life-cycle stage of family head Under 55 years Unmarried, no children 74.7 61.4 14.6 8.6 19.5 18.2 2.7 1.1 4.6 31.6 88.9 Married, no children 86.1 67.7 20.2 15.0 29.1 19.3 * 1.3 5.8 46.0 90.6 Unmarried, children 58.9 55.2 7.4 9.0 12.8 12.4 2.3 .8 4.4 32.9 73.3 Married, children 84.1 69.2 12.4 15.4 31.9 20.4 1.8 1.2 4.0 50.3 91.7 55 years and over In labor force 85.1 64.9 24.6 31.2 42.0 28.9 5.0 4.7 4.3 54.2 93.1 Out of labor force Retired 77.5 49.9 17.1 34.8 7.9 22.6 4.9 3.6 2.6 41.5 85.8 Other 77.7 44.3 13.5 41.9 * 15.7 * • 27.5 82.8 Housing status Own 87.8 67.6 18.5 26.5 30.6 25.7 3.7 2.9 4.5 52.4 93.7 Rent or other 62.6 51.4 8.9 9.0 13.0 11.4 1.9 .6 3.2 29.5 77.6 •Fewer than five families. FAMILY INCOME increase was offset by declines in all other education categories. A moderate increase for white families According to the SCF, real median pre-tax income was offset by a decline for nonwhite and Hispanic for families was virtually unchanged between 1983 families. The difference by racial group may partly and 1989 (table 1). This finding is supported by data reflect changes in the way race was ascertained in the from the Current Population Survey conducted by two surveys. In the 1983 SCF, race was based on the the Bureau of the Census. Over the same period, survey interviewer's observation, whereas in the mean real family income rose from $33,400 to 1989 SCF, the survey respondent reported his or her $35,700. These findings suggest that incomes above own race, the procedure routinely followed by the the median grew faster than those below the median Census Bureau. Consequently, the 1989 SCF race and that the distribution of family income became classification matches Census estimates, whereas somewhat more concentrated among families with the 1983 data overstate the proportion of nonwhites higher income. and Hispanics. This difference may cast some doubt Although in the aggregate median family income on comparisons between 1983 and 1989 SCF results did not change, a breakdown of the population by based on race classifications. demographic groups shows mixed changes. The Consistent with aggregate income and population median income for families headed by persons with data, the SCF shows that the aggregate mean family at least some college experience rose, but this income rose. Increases for families headed by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Changes in Family Finances from 1983 to 1989 5 4. Ownership of selected financial assets, by selected characteristics of families, 1983 and 1989—Continued Percent 1989 Family characteristic Money Retire- Non- Checking Savings market CDs ment Stocks Bonds taxable Trusts Other Total accounts accounts accounts accounts bonds All families 75.4 43.5 22.2 19.6 33.3 19.0 4.4 4.4 3.4 47.7 87.5 Family income (1989 dollars) Less than 10,000 46.2 21.9 7.8 8.6 3.1 2.0 .8 * * 16.6 59.1 10,000-19,999 69.7 40.7 14.6 21.2 14.9 10.9 2.4 • 3.1 35.6 85.6 20,000-29,999 80.3 47.6 21.0 20.6 34.4 16.9 3.0 4.2 3.0 49.4 95.2 30,000-49,999 88.8 52.9 23.2 21.0 44.9 20.8 5.0 4.2 3.6 63.5 98.2 50,000 and more 91.5 53.9 44.7 26.5 69.2 44.6 12.7 12.6 7.1 72.3 99.7 Age of family head (years) Under 35 68.4 45.0 14.9 8.5 23.0 11.4 .8 .9 2.5 39.5 82.2 35-44 76.1 50.0 20.4 15.5 44.0 21.2 3.4 3.5 2.8 56.8 88.4 45-54 78.9 44.6 27.0 21.1 45.5 23.1 3.5 4.3 3.1 52.9 90.4 55-64 76.7 38.9 23.0 20.9 42.6 22.0 5.9 7.5 3.0 49.6 87.5 65-74 79.9 37.7 28.3 31.6 30.0 20.8 9.1 9.4 6.4 48.4 91.5 75 and over 79.3 36.2 30.5 39.4 6.6 21.3 9.6 4.9 4.8 35.5 90.6 Race of family head White 79.9 44.8 24.7 21.9 36.2 21.0 4.9 5.0 3.7 50.4 91.4 Nonwhite and Hispanic 44.6 34.3 5.4 3.6 13.7 3.9 .5 * 1.4 29.0 60.9 Life-cycle stage of family head Under 55 years Unmarried, no children 71.9 40.2 17.2 10.7 26.7 16.8 1.8 3.0 2.4 30.3 84.7 Married, no children 78.9 52.6 31.2 16.3 40.2 26.9 4.8 5.8 2.2 50.2 92.8 Unmarried, children 54.5 35.7 9.5 9.0 21.9 8.7 1.4 1.9 .7 30.8 68.4 Married, children 80.8 52.5 22.7 16.4 43.1 19.9 2.5 2.4 3.7 61.5 92.7 55 years and over In labor force 83.9 44.4 25.1 23.2 49.1 26.1 7.2 9.8 4.6 57.3 95.6 Out of labor force Retired 81.8 37.6 31.3 35.9 25.2 23.7 10.9 8.4 6.0 45.6 93.0 Other 60.8 26.5 18.2 23.7 6.5 8.2 1.9 1.5 1.2 26.1 72.0 Housing status Own 84.9 49.2 27.2 24.6 43.6 25.2 6.1 5.8 4.6 58.0 95.6 Rent or other 57.8 32.9 13.1 10.4 14.5 7.6 1.2 2.0 1.4 28.7 72.7 persons less than 55 years old were partly offset by NET WORTH declines for families with heads between 55 and 74 years of age. Workers in highly skilled occupations Changes in the overall real net worth of families—the fared better than other workers. Mean family income difference between families' total assets and their increased for managers; technical workers; and total debts—were more dramatic than changes in precision production, craft, and repair workers. family income. Mean real net worth rose more than Mean income of homeowners and of whites rose, 23 percent, whereas median real net worth rose only whereas that of renters and of nonwhites and 11 percent (table 2).4 As with income, the contrast Hispanics fell. In the age group under 55 years, between the mean and median suggests an increase mean income rose most rapidly for married couples; in the concentration of net worth among wealthy among older families, mean income rose for families families. with retired heads and declined for other families.3 While small increases in median net worth were widespread, some marked declines also occurred. The decline was especially sharp for single parents and for nonwhites and Hispanics. The median net 3. Calculations not reported in the tables indicate that the increase in mean income for dual-earner couples more than 4. Data from the 1984 and 1988 Surveys of Income and accounted for the overall mean increase in income for married Program Participation conducted by the Bureau of the Census couples. show a similar change in real median net worth. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
6 Federal Reserve Bulletin • January 1992 5. Median financial assets of families holding such assets, by selected characteristics of families, Thousands of 1989 dollars 1983 Family characteristic Money Retire- Non- Checking Savings market CDs ment Stocks Bonds taxable Trusts Other Total accounts accounts accounts accounts bonds All families .6 1.4 11.0 12.5 5.0 6.2 12.5 52.9 12.5 3.0 4.5 Family income (1989 dollars) Less than 10,000 .4 .6 3.2 9.1 2.8 2.4 * * 3.9 1.6 .9 10,000-19,999 .5 .9 8.1 12.5 2.5 5.1 12.5 37.4 3.6 1.9 2.1 20,000-29,999 .5 1.3 6.2 14.7 2.5 3.9 12.5 15.6 3.7 1.9 2.8 30,000-49,999 .6 1.7 9.7 12.5 3.8 3.1 8.5 12.6 8.3 3.9 6.0 50,000 and more 1.4 3.4 14.9 15.5 8.1 18.7 24.9 62.3 24.9 6.2 31.9 Age of family head (years) Under 35 .4 .6 5.6 5.0 2.0 1.9 12.5 149.4 3.7 1.9 1.5 35-44 .6 1.4 7.5 10.0 5.0 5.0 8.7 52.9 10.0 2.9 4.4 45-54 .7 1.7 17.4 10.6 5.6 5.0 12.5 54.0 12.5 3.9 5.7 55-64 1.2 2.0 12.5 15.4 7.5 11.2 18.7 56.3 32.4 6.2 11.7 65-74 1.2 2.5 16.3 23.0 12.5 16.8 31.1 62.3 95.9 2.6 17.2 75 and over 1.1 3.7 16.8 23.0 5.0 14.9 6.2 18.7 12.5 1.9 15.6 Race of family head White .6 1.6 10.6 12.5 5.0 6.2 12.5 52.9 12.5 3.1 5.8 Nonwhite and Hispanic .5 .8 11.9 6.2 2.3 1.2 * * 3.6 2.6 1.1 Life-cycle stage of family head Under 55 years Unmarried, no children .5 .6 6.8 5.0 3.1 2.5 12.5 54.0 .7 1.8 2.0 Married, no children .6 1.0 7.5 6.2 3.6 3.7 * 124.5 5.0 2.8 3.5 Unmarried, children .5 .8 6.2 10.6 2.5 3.7 5.0 15.6 6.2 1.5 1.7 Married, children .6 1.4 9.3 7.5 5.0 4.4 12.5 47.3 10.0 3.4 3.5 55 years and over In labor force 1.2 2.0 14.1 16.2 10.0 11.8 12.5 56.3 62.3 5.1 15.7 Out of labor force Retired 1.2 3.0 14.9 19.0 5.6 14.7 24.9 18.7 32.4 2.1 12.8 Other .6 1.6 10.5 23.7 * 12.5 * * * 1.6 8.5 Housing status Own .7 1.9 12.5 13.1 5.6 6.3 18.7 52.9 13.7 3.7 7.8 Rent or other .5 .7 6.2 10.0 2.5 3.1 11.3 49.8 3.8 1.6 1.5 MEMO ^BARFR Mean 2.3 4.6 27.4 28.6 19.5 75.6 80.4 147.2 114.5 10.5 48.5 "Fewer than five families. worth of farm families fell sharply as prices for the decline in median net worth for nonwhites and farmland plummeted in the early 1980s. (Even with Hispanics, the mean net worth of this group rose; an increase in the price of farmland after 1985, the indeed, the percentage increase exceeded that of price level of farmland in 1989 was about 30 percent white families. below the level in 1983.) Among families headed by Changes in net worth may be attributed to changes persons 55 years of age and over, those whose heads in the value of the holdings of assets or in the amount were retired had the only increase in median net of debt carried. The coverage of assets and liabilities worth. Families with heads in this age group who in the survey is highly detailed; the aggregations remained in the labor force experienced declines in presented in this article have been chosen to illustrate median net worth. trends in the data. The change in mean net worth varied widely across demographic groups. Families headed by ASSETS persons having some higher education and married couples headed by persons under 55 years of age The composition of assets held by all families, as showed particularly large increases. In contrast to recorded in the SCF, changed slightly between 1983 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Changes in Family Finances from 1983 to 1989 10 5. Median financial assets of families holding such assets, by selected characteristics of families, 1983 and 1989-Continued Thousands of 1989 dollars 1989 FFaammiillyy cchhaarraacctteerriissttiicc Money Retire- Nonmarket CCDDss ment SSttoocckkss BBoonnddss taxable TTrruussttss OOtthheerr Total accounts accounts accounts accounts bonds All families .9 1.5 5.0 11.0 10.0 7.5 17.3 25.0 23.0 2.5 10.4 Family income (1989 dollars) Less than 10,000 .4 1.0 4.0 10.0 3.3 30.0 13.0 * * 1.0 1.3 10,000-19,999 .7 1.0 5.0 10.0 4.0 7.0 15.0 * 20.0 2.1 4.5 20,000-29,999 .8 1.2 3.5 10.0 6.0 4.0 6.2 5.0 14.0 2.0 6.8 30,000-49,999 1.0 2.0 4.0 12.0 8.5 5.5 26.0 25.0 30.0 2.8 12.2 50,000 and more 1.5 3.0 10.0 15.0 21.2 12.0 20.0 35.0 32.0 4.7 41.5 Age of family head (years) Under 35 .6 .7 2.6 5.0 4.0 2.7 .1 15.0 26.0 1.0 2.5 35-44 .9 1.5 5.0 10.0 8.0 3.0 6.2 11.7 10.0 2.5 11.2 45-54 1.0 1.5 2.7 9.0 14.0 6.0 12.0 10.0 10.0 3.5 14.5 55-64 1.0 4.5 11.0 12.0 22.0 18.3 20.0 25.0 32.0 5.0 20.0 65-74 1.0 2.0 10.0 17.0 15.0 25.0 20.0 32.0 48.0 3.0 18.2 75 and over 1.0 5.0 8.0 25.0 25.0 18.0 26.0 50.0 32.0 3.7 21.0 Race of family head White 1.0 1.7 5.0 11.3 10.3 7.5 16.0 25.0 30.0 2.5 11.5 Nonwhite and Hispanic .6 .9 4.0 10.0 4.0 2.3 18.0 * 8.0 2.0 2.0 Life-cycle stage of family head Under 55 years Unmarried, no children .7 1.0 4.5 10.0 5.0 3.7 30.0 11.7 40.0 1.5 4.9 Married, no children 1.0 1.6 2.7 6.2 4.9 3.6 3.0 7.0 8.0 1.0 7.1 Unmarried, children .5 1.0 1.5 5.1 4.0 2.5 12.0 2.0 6.0 2.0 3.0 Married, children .9 1.2 4.0 7.0 10.0 3.6 6.0 30.5 14.0 2.5 11.0 55 years and over In labor force 1.0 3.0 15.0 13.0 20.0 20.0 20.0 50.0 32.0 5.0 22.2 Out of labor force Retired 1.0 5.0 10.5 20.0 16.0 20.3 26.0 25.0 45.0 4.0 22.4 Other .8 1.0 5.0 20.0 4.0 20.0 80.0 34.0 6.0 2.0 4.6 Housing status Own 1.0 2.0 6.4 13.0 12.4 8.0 16.0 30.0 20.0 3.0 16.2 Rent or other .6 .9 3.0 8.0 4.0 5.0 30.0 6.3 26.0 1.5 2.3 MEMO Mean 3.0 6.3 28.3 30.6 40.0 57.2 75.0 137.8 125.0 10.3 68.6 and 1989 (table 3). The small shift away from checking accounts—including conventional checknonfinancial assets reflects declines in business and ing accounts, NOW accounts, and money market real estate assets as a share of total assets.5 accounts used for checking—whereas by 1989 about 75 percent of families owned them. The decline was spread over virtually all groups shown here. Over Financial Assets this period, the movement of financial institutions Despite the increase in financial assets as a propor- toward more explicit prices for checking services tion of total family assets, the ownership of several may have made these accounts less attractive to types of financial assets fell sharply (tables 3 and 4). many families. Nevertheless, data from the SCF In 1983, nearly 79 percent of families owned indicate that only 16 percent of families without checking accounts in 1989 reported that service fees or balance requirements deterred them from main- 5. Any division of assets into financiala nd nonfinancial taining an account. The proportion of families categories is somewhat arbitrary. The classifications used here owning savings accounts also fell dramatically over may differ from others, such as those in the flow of funds accounts, which are published by the Federal Reserve. this period, partly because families shifted assets to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
8 Federal Reserve Bulletin • January 1992 6. Family ownership of selected nonfinancial assets, by selected characteristics of families, 1983 and 1989 Percent 1983 FFaammiillyy cchhaarraacctteerriissttiicc Investment Other Principal Vehicles Business Total real estate assets residence All families 84.4 14.2 20.9 7.4 64.4 90.3 Family income (1989dollars) Less than 10,000 50.5 4.5 6.9 3.3 40.1 67.4 10,000-19,999 83.2 6.9 14.1 5.5 52.6 89.1 20,000-29,999 93.3 12.0 17.9 7.2 60.3 96.1 30,000-49,999 97.0 18.7 25.8 8.0 77.2 98.6 50,000 and more 96.4 31.5 42.7 14.3 88.9 99.4 Age of family head (years) Under 35 83.3 10.3 10.4 9.1 38.7 87.2 35-44 91.2 18.3 22.9 10.3 68.4 94.0 45-54 90.3 18.2 24.9 6.4 78.0 92.7 55-64 87.7 18.1 32.6 5.9 76.8 93.1 65-74 80.2 12.3 27.2 5.6 78.9 91.8 75 and over 57.8 6.4 16.9 1.4 69.5 79.6 Race of family head White 88.7 16.1 23.1 8.5 68.0 94.3 Nonwhite and Hispanic 64.4 5.4 10.9 2.5 42.2 71.3 Life-cycle stage of family head Under 55 years Unmarried, no children 71.9 9.1 10.0 13.9 23.4 79.1 Married, no children 96.4 14.3 14.6 13.0 51.8 97.0 Unmarried, children 73.1 6.4 12.0 6.2 42.7 78.3 Married, children 96.2 19.3 22.5 7.6 73.5 97.8 55 years and over In labor force 89.5 24.1 36.3 7.3 78.1 95.1 Out of labor force Retired 74.4 6.1 22.1 3.4 74.8 86.2 Other 51.7 7.7 15.9 * 73.1 85.2 Housing status Own 92.4 18.8 27.1 7.5 100.0 100.0 Rent or other 70.5 6.3 10.2 7.4 • 73.4 •Fewer than five families. other investment vehicles. Again, the decline was The proportion of families owning retirement pervasive. While the proportion of families holding accounts rose; these accounts include individual checking and savings accounts declined over the retirement and Keogh accounts as well as employerperiod, the families that held these accounts in 1989 sponsored pension accounts from which withdrawals maintained them at about the same real level as that could be made. The median size of retirement in 1983, with the median value of checking accounts accounts doubled. In part, this growth reflected the rising only from $600 to $900 (tables 4 and 5). overall shift in employer-provided pensions from The proportion of families owning money market defined-benefit plans, in which the employer pays a accounts, including money market mutual funds and regular benefit beginning at retirement, to definedmoney market deposit accounts not used as a contribution and 401(k)-type plans, in which emchecking account, rose. With the increasing owner- ployees have rights to a specific pool of funds at ship of money market accounts, the median size of retirement.6 While the median retirement account account declined from $11,000 to $5,000, whereas grew in all categories shown, the increase for the overall mean rose slightly from $27,400 to $28,300. The decrease in the median amount held 6. The SCF collects financial data on all types of pensions. in these accounts, with the increase in the rate of However, for the analysis of family finances,w e include only retirement accounts from which funds can be withdrawn before ownership, indicates that the number of small money retirement, even if with a penalty. These are generally definedmarket accounts increased. contribution or 401(k)-type plans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Changes in Family Finances from 1983 to 1989 9 6. Family ownership of selected nonfinancial assets, by selected characteristics of families, 1983 and 1989-Continued Percent 1989 FFaammiillyy cchhaarraacctteerriissttiicc Investment Other Principal Vehicles Business Total real estate assets residence All families 84.0 11.5 20.4 22.1 64.7 90.2 Fondly income (1989 dollars) Less than 10,000 51.6 2.3 5.9 12.1 36.2 66.9 10,000-19,999 82.1 8.0 14.4 18.5 57.0 90.5 20,000-29,999 94.4 10.1 15.0 23.8 63.5 96.7 30,000-49,999 95.5 12.0 27.1 25.4 76.2 98.0 50,000 and more 96.8 25.4 38.7 30.7 90.0 99.4 Age of family head (years) Under 35 80.7 8.4 8.1 20.5 36.8 84.4 35-44 89.5 17.0 20.9 24.9 65.9 92.8 45-54 90.9 16.2 28.5 25.6 76.6 93.3 55-64 86.9 11.3 31.3 23.9 82.2 92.1 65-74 81.9 7.9 25.6 20.4 80.2 93.8 75 and over 66.9 4.7 16.9 13.3 72.8 87.3 Race of family head White 87.9 12.6 21.9 23.3 67.9 93.2 Nonwhite and Hispanic 56.8 4.4 10.5 13.2 42.8 70.0 Life-cycle stage of family head Under 55 years Unmarried, no children 75.5 10.5 10.9 28.6 23.7 82.1 Married, no children 95.4 13.0 19.8 26.9 56.9 97.2 Unmarried, children 64.7 5.0 9.2 22.2 35.2 71.6 Married, children 96.6 17.5 22.3 21.6 74.9 97.7 55 years and over In labor force 91.1 17.6 34.3 28.7 82.0 94.8 Out of labor force Retired 82.6 4.7 25.0 17.4 82.2 93.5 Other 56.7 2.0 12.3 11.3 65.6 81.4 Housing status Own 92.7 14.4 26.0 23.0 100.0 100.0 Rent or other 67.9 6.3 10.1 20.3 * 72.3 families with incomes of $50,000 and more was funds, declined slightly. The median value of particularly dramatic. The ownership of other holdings of stocks rose overall, with a noticeable financial assets, which include savings bonds and drop both in ownership and in median holdings for the cash value of life insurance, also grew. families with incomes of $50,000 and more. Median The financial assets discussed thus far were held stock holdings also declined for families headed by in insured depository institutions—which include persons between 35 and 44 years of age. Aggregate banks, savings banks, savings and loans, and credit mean holdings of stock fell sharply from $75,600 to unions—or in uninsured institutions. The percentage $57,200. For all families, mean holdings of both of families owning any type of account at a de- taxable and nontaxable bonds, which include bonds pository institution changed little over the period held directly and bonds held through mutual funds, (not shown in table). The holdings of any account in fell. However, median holdings of taxable bonds an insured depository institution fell slightly; those increased, and median holdings of tax-exempt bonds of families with income of less than $10,000 showed decreased. These changes in median holdings may large declines. Nevertheless, for families maintain- reflect changes in the tax code that have lessened the ing accounts, the median value of holdings at deposi- relative advantage of nontaxable bonds. tory institutions increased for virtually all groups. Overall, the proportion of families owning any Stock ownership, which includes holdings of type of financial asset fell slightly. Nevertheless, for publicly traded corporate stock and of equity mutual families still holding financial assets, median hold- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
10 Federal Reserve Bulletin • January 1992 7. Median amount of nonfinancial assets of families holding such assets, by selected characteristics of families, 1983 and 1989 Thousands of 1989 dollars 1983 FFaammiillyy cchhaarraacctteerriissttiicc Investment Other Principal Vehicles Business Total real estate assets residence All families 5.1 57.0 43.6 6.2 64.7 59.7 Family income (1989 dollars) Less than 10,000 1.8 41.1 13.9 2.5 32.1 15.5 10,000-19,999 3.2 31.4 27.9 2.9 49.8 31.1 20,000-29,999 4.5 24.9 31.1 3.7 54.2 45.9 30,000-49,999 6.4 44.0 39.0 6.2 74.7 81.5 50,000 and more 9.8 121.0 89.0 12.5 112.1 163.9 Age of family head (years) Under 35 4.4 24.9 31.1 2.5 56.0 13.2 35-44 5.6 55.2 47.3 6.2 80.9 77.4 45-54 6.6 67.5 36.1 10.7 74.7 88.1 55-64 6.3 93.4 49.8 12.5 74.7 81.4 65-74 3.8 94.7 49.8 12.5 57.3 65.5 75 and over 2.3 124.5 39.8 5.8 44.8 49.2 Race of family head White 5.2 59.2 44.2 6.2 68.5 65.5 Nonwhite and Hispanic 4.1 pfl49B.0 i 25.5 2.5 43.6 25.7 Life-cycle stage of family head Under 55 years Unmarried, no children 3.6 15.4 28.0 2.8 56.0 6.2 Married, no children 6.0 49.8 53.4 3.7 62.3 39.9 Unmarried, children 3.6 49.0 37.0 11.2 62.3 39.0 Married, children 6.3 50.3 39.0 5.1 74.7 74.3 55 years and over In labor force 6.4 93.4 56.0 18.7 74.7 91.7 Out of labor force Retired 3.4 99.6 43.6 8.7 49.8 55.6 Other 3.6 124.5 7.5 * 49.8 44.8 Housing status Own 6.1 62.3 43.6 8.5 64.7 85.0 Rent or other 3.4 26.6 36.1 3.1 # 4.2 MEMO ^B^^FCFFIIISII Mean 7.0 238.7 126.7 22.3 87.5 136.7 •Fewer than five families. ings more than doubled, whereas mean holdings 8 percent rise, whereas the mean increased from increased only about 40 percent. These changes $87,500 to $107,400, a23 percent rise (table 7). The suggest a decline in concentration of financial assets. increase occurred largely in the group of families with incomes of $50,000 and more. Nonfinancial Assets The ownership of investment real estate, including all properties from vacation cabins to shopping The largest single asset of most families is their centers, also changed little over the period, whereas principal residence. Rates of homeownership for all the median holdings fell about 11 percent. By income families were little changed between 1983 and 1989 group, changes in ownership were mixed, with a (table 6). However, there were sizable declines in notable decline for families with incomes of $50,000 ownership for the lowest income group and for and more. For this group, the median size of holdings single parents. Rates of homeownership for childless in investment real estate also declined. The median married couples increased substantially as did rates investment in real estate increased for families for families with heads between 55 and 64 years of without children headed by persons under age 55. age. For all families, the median real home value for Ownership of an equity interest in a business, homeowners increased from $64,700 to $70,000, an including limited partnerships, other partnerships, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Changes in Family Finances from 1983 to 1989 11 7. Median amount of nonfinancial assets of families holding such assets, by selected characteristics of families, 1983 and 1989-Continued Thousands of 1989 dollars 1989 FFaammiillyy cchhaarraacctteerriissttiicc Investment Other Principal Vehicles Business Total real estate assets residence All families 6.9 50.0 39.0 5.0 70.0 66.7 Family income (1989 dollars) Less than 10,000 2.0 14.3 16.7 1.2 33.0 11.4 10,000-19,999 4.1 5.9 18.0 3.0 50.0 39.2 20,000-29,999 5.8 40.0 30.0 3.0 57.0 48.3 30,000-49,999 8.7 45.0 35.0 5.0 75.0 84.9 50,000 and more 13.4 93.0 80.0 15.0 130.0 190.0 Age of family head (years) Under 35 5.7 11.0 31.5 1.6 65.0 15.5 35-44 8.0 50.0 46.0 5.0 80.0 81.3 45-54 9.6 61.6 50.0 8.3 85.0 105.3 55-64 7.1 80.0 39.0 8.0 75.0 93.9 65-74 5.4 53.0 34.0 10.0 58.1 63.1 75 and over 3.7 28.5 35.0 10.0 55.0 52.0 Race of family head White 7.1 50.0 40.0 6.0 75.0 71.0 Nonwhite and Hispanic 4.5 8.4 30.0 .4 42.5 30.1 Life-cycle stage of family head Under 55 years Unmarried, no children 4.3 8.4 45.0 2.0 84.0 8.8 Married, no children 9.0 45.0 94.0 4.0 84.0 66.3 Unmarried, children 4.8 13.4 46.0 3.0 60.0 22.7 Married, children 9.3 52.0 45.0 6.0 80.0 86.4 55 years and over In labor force 7.6 80.0 43.0 8.0 80.0 98.3 Out of labor force Retired 5.5 49.2 35.7 11.4 60.0 67.6 Other 2.6 8.9 19.0 2.5 45.0 43.0 Housing status Own 8.3 60.0 40.0 8.0 70.0 95.9 Rent or other 8.0 7.2 31.0 2.0 * 5.5 MEMO Mean 10.0 334.2 160.6 32.6 107.4 173.3 corporations, sole proprietorships, and other private holdings for those with vehicles rose from $5,100 to businesses, fell substantially. The value of holdings $6,900: This rise reflects the increase in the real cost fell for families in the top and the bottom income of automobiles. categories. Particularly striking was the decline of This comparison of mean and median values for the real value of median holdings of businesses by individual categories of nonfinancial assets suggests nonwhites and Hispanics from $49,000 to $8,400. This decline, with a decrease in the rates of business 8. Composition of family debts, 1983 and 1989 ownership, reflects the exit of minority investors Percent from the market. Debt 1983 1989 While the overall ownership of vehicles, including automobiles, trucks, campers, boats, and other Home mortgages 5588..11 5533..11 vehicles, was virtually unchanged, some individual Investment real estate mortgages .. 2200..55 2255..00 Home equity lines of credit ..55 22..66 categories did exhibit relatively large shifts. Two Other lines of credit 22..88 11..00 Credit cards 11..88 22..22 groups showing marked declines in rates of owner- Car loans 66..11 88..00 ship were families with younger heads and nonwhites Other debt 1100..22 88..11 and Hispanics. Nevertheless, real median gross Total 110000..00 110000..00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
12 Federal Reserve Bulletin • January 1992 9. Families carrying selected financial debts, by selected characteristics of families, 1983 and 1989 Percent 1983 FFaammiillyy cchhaarraacctteerriissttiicc Home Investment Home equity Other lines Credit Car Other mortgage real estate lines of credit cards loans debt All families 36.9 7.6 .5 11.2 37.0 28.7 29.6 69.6 Family income (1989 dollars) Less than 10,000 9.9 1.0 * 3.0 11.9 8.8 24.4 41.3 10,000-19,999 20.1 2.6 * 7.2 26.3 21.7 25.1 58.2 20,000-29,999 34.0 5.4 * 10.7 45.5 32.9 31.9 76.6 30,000-49,999 56.4 9.9 .8 16.9 53.0 40.0 34.8 85.3 50,000 and more 66.8 21.3 .7 18.2 48.4 40.1 32.1 87.2 Age of family head (years) Under 35 32.6 5.3 .4 12.6 38.4 36.9 42.3 79.1 35-44 58.1 11.7 .8 17.3 51.5 38.4 38.4 87.1 45-54 53.5 10.4 .8 13.6 45.0 35.3 31.1 81.0 55-64 34.4 10.6 * 9.6 37.5 21.9 19.0 67.2 65-74 15.7 3.5 * 3.1 18.2 8.4 9.0 37.1 75 and over 3.7 1.2 * * 6.1 * 6.2 16.8 Race of family head White 39.2 8.4 .6 11.0 37.9 29.7 29.0 70.6 Nonwhite and Hispanic 26.3 4.0 * 12.0 33.1 23.7 32.6 64.7 Life-cycle stage of family head Under 55 years Unmarried, no children 14.8 4.3 • 7.7 33.3 21.6 35.2 68.8 Married, no children 45.8 7.4 * 17.1 52.8 45.0 46.0 91.1 Unmarried, children 31.0 5.1 * 12.8 34.3 24.6 33.4 70.5 Married, children 60.0 11.2 .7 16.4 49.4 45.3 40.3 89.0 55 years and over In labor force 34.3 12.3 * 10.7 37.3 21.7 18.6 66.7 Out of labor force Retired 13.7 2.0 * 1.8 15.5 7.2 8.8 33.2 Other * * * » 10.9 * 7.9 21.5 Housing status Own 58.3 9.6 .8 12.0 41.6 31.0 28.5 75.1 Rent or other * 4.2 * 9.8 29.1 24.5 31.6 60.0 •Fewer than five families. that the concentration of all such nonfinancial assets The largest percentage increase in the median value increased. For homes and vehicles, the most widely of holdings was for the group with incomes of held nonfinancial assets, both mean and median $50,000 and more. The only other sizable increase holdings grew. The median values for homes and was reported for married couples with no children. vehicles grew 8 percent and 35 percent respectively, Large declines were observed for single parents. while the mean values grew faster—23 percent and 43 percent respectively. This difference suggests that the top half of the distribution shifted upward faster than the bottom half. In other words, nonfi- LIABILITIES nancial assets became more concentrated at the top end of the distribution. For the remaining nonfinan- Families hold many types of debt, including mortcial assets, the median values actually fell while the gage and credit-card debt, lines of credit, automobile mean values increased, a finding that suggests even loans, and closed-end and other debts. While the greater increases in concentration. Overall, both the largest nonfinancial asset for most families is their median and mean values of total nonfinancial assets principal residence, their largest financial obligation increased. This fact indicates that the increases in is their mortgage for it. In light of changes in the tax home and vehicle assets more than offset the declines treatment of consumer interest payments, one might in the median holdings of less widely held assets. expect families to increase the proportion of their Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Changes in Family Finances from 1983 to 1989 13 9. Families carrying selected financial debts, by selected characteristics of families, 1983 and 1989—Continued Percent 1989 Family characteristic Home Investment Home equity Other lines Credit Car Other mortgage real estate lines of credit cards loans debt All families 38.7 7.0 3.3 3.3 39.9 35.1 32.3 72.7 Family income (1989 dollars) Less than 10,000 8.8 1.0 * 1.5 15.0 11.1 29.6 47.2 10,000-19,999 21.3 1.5 1.3 2.2 27.3 21.8 31.0 58.7 20,000-29,999 36.8 4.7 2.4 1.6 48.9 39.4 30.0 79.5 30,000-49,999 53.1 8.8 4.5 4.1 55.0 50.9 36.1 86.5 50,000 and more 72.4 18.7 7.7 6.7 53.1 51.7 34.2 91.8 Age of family head (years) Under 35 32.8 2.6 1.0 4.5 44.0 37.4 45.0 79.5 35-44 57.7 10.2 4.3 4.7 52.4 51.5 43.0 89.6 45-54 56.3 12.3 6.3 4.0 50.0 48.7 32.9 85.9 55-64 37.5 10.7 6.1 1.9 34.1 29.3 24.2 74.0 65-74 19.9 3.9 1.0 .6 25.4 14.0 13.4 47.9 75 and over 8.6 1.4 * * 10.6 5.3 8.1 23.8 Race of family head White 40.9 7.6 3.6 3.4 41.0 36.3 31.9 73.9 Nonwhite and Hispanic 23.7 2.9 1.1 2.4 32.4 27.0 35.1 65.0 Life-cycle stage of family head lllHfW^^H Under 55 years Unmarried, no children 18.1 5.0 * 5.6 37.5 29.8 37.6 72.8 Married, no children 52.0 9.8 * 11.0 57.9 50.5 49.5 89.2 Unmarried, children 26.8 4.2 1.6 2.6 33.4 29.9 38.4 70.0 Married, children 63.6 9.3 5.4 4.0 56.7 55.0 43.1 93.6 55 years and over In labor force 41.2 12.0 6.6 2.7 43.3 32.1 21.2 79.1 Out of labor force Retired 15.5 3.7 1.1 .5 15.2 12.5 11.5 37.9 Other 17.0 1.7 * * 18.3 8.6 20.8 42.1 Housing status Own 59.8 9.0 5.0 2.9 43.8 39.0 30.7 78.0 Rent or other * 3.4 * 4.0 32.7 27.9 35.4 63.1 debt that is secured by their principal residence. their mortgage debt. The sizable decline in owner- However, the real size of mortgages for principal ship of mortgage debt among single parents stands residences plus home equity lines of credit actually out from a picture of mortgage holding that otherwise declined as a proportion of total family debt between shows little change. 1983 and 1989 (table 8). This decline occurred The use of home equity lines of credit, another because, while the level of real total home equity form of mortgage debt, rose strongly over this debt increased, other forms of debt increased even period; it was concentrated in the high-income more (tables 9 and 10). In particular, credit-card groups. The median value of debt of this type debt and automobile loans grew substantially over increased substantially whereas the mean value of this period. debt rose only slightly. This difference suggests that The proportion of families owning homes rose large home-equity lines of credit shrank as a slightly, but the proportion of families with mort- proportion of all such debt. While families may have gages rose faster, from 37 percent to almost substituted home equity lines of credit for other 39 percent (tables 6 and 9). The median size of a types of credit, the overall proportion of families mortgage rose from $27,000 to $32,000 (table 10). using any line of credit fell from WA percent in The two lowest income groups reduced the median 1983 to 6!/2 percent in 1989. value of their debt outstanding. In contrast, the three The ownership of investment real estate declined, highest income groups increased the median size of and the proportion of families in virtually all income Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
14 Federal Reserve Bulletin • January 1992 10. Median debt of families carrying such debts, by selected characteristics of families, 1983 and 1989 Thousands of 1989 dollars 1983 FFaammiillyy cchhaarraacctteerriissttiicc Home Investment Home equity Other lines Credit Car Other mortgage real estate lines of credit cards loans debt All families 27.0 23.3 7.5 1.2 .6 3.8 1.6 13.4 Family income (1989 dollars) Less than 10,000 13.5 2.8 * .5 .4 1.6 .7 1.8 10,000-19,999 17.6 10.2 * 1.0 .5 2.6 .9 4.0 20,000-29,999 17.7 21.4 • .9 .5 3.0 1.4 8.5 30,000-49,999 28.4 15.8 2.5 1.2 .7 4.0 2.1 21.8 50,000 and more 39.1 40.0 24.9 1.9 1.0 5.5 5.0 45.1 Age of family head (years) Under 35 34.0 23.0 2.5 .9 .6 3.2 1.4 8.3 35-44 31.9 24.2 30.5 1.2 .7 4.5 2.0 25.4 45-54 20.3 15.7 10.0 1.4 .6 4.0 2.3 16.1 55-64 15.9 29.6 * 1.9 .6 3.7 2.9 10.2 65-74 14.1 35.6 * .9 .2 2.9 .7 4.9 75 and over 4.6 43.7 * * .4 * .4 1.2 Race of family head White 28.5 25.1 7.5 1.2 .6 3.8 1.8 15.5 Nonwhite and Hispanic 16.3 16.9 * 1.0 .9 3.2 1.1 5.6 Life-cycle stage of family head Under 55 years Unmarried, no children 28.9 25.1 * 1.0 .5 3.3 1.6 3.6 Married, no children 38.4 43.3 * .9 .6 4.4 1.2 15.3 Unmarried, children 22.5 16.4 * 1.2 .5 2.8 1.1 7.0 Married, children 29.8 20.3 5.0 1.2 .7 4.0 2.0 24.0 55 years and over In labor force 17.8 32.2 * 2.4 .6 3.8 3.1 12.4 Out of labor force Retired 11.8 35.6 * .8 .4 3.4 .6 3.1 Other * * * * .2 * .6 .6 Housing status Own 27.0 23.3 7.5 1.2 .6 4.2 2.2 25.5 Rent or other * 24.2 * 1.0 .6 2.8 1.0 2.2 MEMO Mean 34.7 59.3 22.8 5.5 1.1 4.7 7.6 31.7 •Fewer than five families. groups with investment real estate debt fell. At the both the incidence and the median amount of car same time, the median debt secured by investment loans increased for most groups. As with car loans, real estate rose; it increased in all income groups but the median amount of other debt, including closedthe middle. Median debt declined substantially for end consumer debt other than auto loans and families with heads over 55 years of age. loans against pension plans and insurance, grew For most of the groups examined here, the between 1983 and 1989. The increases were proportion of families holding credit-card debt widespread. increased. A notable exception was the category of The proportion of families holding any type of nonwhite and Hispanic families, for whom the debt rose about 3 percentage points; the median real incidence and the median holding of credit-card debt amount of debt held rose 13 percent; and the mean declined. In the life-cycle categories, only for single real debt rose by 42 percent, from $31,700 to parents did the incidence of credit-card debt decrease $45,000. While the median debt rose for all income noticeably, whereas for all groups the median level groups, the rise was most marked for those with of debt grew. incomes of $20,000-$29,000, a group for which Despite a tax treatment of automobile loans that debt increased nearly 50 percent. The median debt was less favorable in 1989 than in 1983, with the for childless couples with heads under 55 years of increasing real cost of purchasing automobiles age more than doubled. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Changes in Family Finances from 1983 to 1989 15 10. Median debt of families carrying such debts, by selected characteristics of families, 1983 and 1989—Continued Thousands of 1989 dollars 1989 FFaammiillyy cchhaarraacctteerriissttiicc Home Investment HHoommee eeqquuiittyy Other lines Credit Car Other T 1 mortgage real estate lines of credit cards loans debt All families 32.0 30.0 17.5 2.0 .9 5.8 2.0 15.2 Family income (1989 dollars) Less than 10,000 7.5 3.6 * 2.0 .3 1.8 1.2 1.9 10,000-19,999 13.0 24.0 25.0 .9 .6 3.0 1.3 5.0 20,000-29,999 21.0 13.5 8.3 .5 .8 5.5 2.0 12.5 30,000-49,999 33.0 17.5 16.0 2.5 1.0 6.5 2.3 26.2 50,000 and more 48.0 47.0 20.0 3.3 1.7 7.2 4.0 55.5 Age of family head (years) Under 35 44.0 20.0 18.9 1.7 1.0 5.1 2.0 11.0 35-44 40.0 39.0 15.0 3.3 1.2 6.6 2.0 31.1 45-54 26.0 21.0 16.0 1.3 1.0 6.4 2.5 23.7 55-64 21.0 16.3 30.0 2.0 .9 5.8 1.8 10.8 65-74 11.0 15.0 30.0 2.0 .5 4.0 1.1 5.0 75 and over 4.5 18.0 * * .2 3.3 2.5 3.0 Race of family head White 35.0 31.7 17.5 2.5 1.0 5.8 2.0 17.3 Nonwhite and Hispanic 15.0 9.3 18.0 1.7 .6 5.4 1.1 4.5 Life-cycle stage of family head Under 55 years Unmarried, no children 50.0 53.0 1.4 .8 5.1 2.6 5.9 Married, no children 52.5 35.0 * 1.7 .8 7.1 4.4 34.2 Unmarried, children 26.5 20.0 16.0 3.0 1.0 4.3 1.5 7.3 Married, children 38.0 31.7 15.0 3.0 1.2 6.4 2.1 31.2 55 years and over In labor force 21.0 17.0 30.0 2.0 .8 4.5 2.4 14.0 Out of labor force Retired 7.9 12.5 4.0 1.1 .5 5.8 1.8 5.8 Other 15.9 18.0 * • .4 3.7 1.0 2.7 Housing status Own 32.0 27.0 17.5 3.0 1.0 6.6 2.3 32.0 Rent or other * 39.0 * 1.4 .8 4.2 1.7 3.2 MEMO Mean 45.0 117.5 26.3 10.2 1.8 7.5 8.2 45.0 The 1989 SCF collected data on the purpose of all they were a month or more late in making loan loans except credit card loans and first mortgages. payments rose from 13 percent to 15 percent between The 1983 SCF has no comparable data. In 1989, 1983 and 1989. 44 percent of the dollar amount of this debt category One measure of consumers' ability to repay loans was associated with purchases of vehicles; about is the ratio of nonmortgage debt payments to income; 20 percent was used for investment. Of the remaining nonmortgage debt refers to loans other than those on debt, 9 percent was for outlays associated with the principal residence (table ll).7 For all income remodeling and repairs, and 9 percent was for and demographic groups reported here, the median education expenses. payment-to-income ratio shifted upward between 1983 and 1989. The shift seems fairly uniform ABILITY TO PAY across groups, except those regarding income. Given the magnitude of the increase in debt and the absence of change in median income between 1983 7. Mortgage debt is excluded because those families not and 1989, questions arise about the ability of families making mortgage payments generally pay rent. Median payments for housing (both mortgage and rent) increased from $1,900 per to repay their loans. Indeed, data from the SCF year in 1983 to $3,000 per year in 1989; these payments relative indicate that the proportion of families reporting that to income rose from 9 percent to 13 percent over the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
16 Federal Reserve Bulletin • January 1992 11. Median ratio of nonmortgage debt payments to family income, by selected characteristics of families, 1983 and 1989 Percent 1983 1989 FFaammiillyy cchhaarraacctteerriissttiicc Lowest Middle Highest Lowest Middle Highest third third third third third third All families .4 5.9 15.0 1.2 8.2 21.0 Family income (1989 dollars) Less than 10,000 .6 3.8 32.1 .8 8.5 39.7 10,000-19,999 .5 6.2 16.9 1.2 7.7 19.9 20,000-29,999 .3 6.7 13.9 .7 9.0 18.8 30,000-49,999 .3 6.0 13.3 1.3 8.3 18.2 50,000 and more .4 5.2 14.0 2.2 7.6 19.4 Age of family head (years) Under 35 .4 6.3 14.6 1.3 8.2 21.5 35-44 .5 5.9 15.0 1.6 8.5 21.0 45-54 .5 5.7 14.6 1.1 7.9 20.1 55-64 .3 5.2 15.7 .8 9.2 20.0 65-74 .3 4.9 17.9 1.1 8.0 22.6 75 and over .4 3.7 * .5 5.3 17.8 Race of family head White .4 5.8 14.8 1.1 8.2 21.0 Nonwhite and Hispanic .4 6.6 16.4 1.7 8.8 20.1 Life-cycle stage of family head Under 55 years Unmarried, no children .5 6.7 14.2 1.4 7.7 23.2 Married, no children .3 6.1 15.9 3.0 8.7 23.5 Unmarried, children .5 6.5 15.5 1.3 8.2 21.2 Married, children .5 5.9 14.6 1.2 8.2 19.9 55 years and over In labor force .4 5.2 14.7 1.1 9.3 19.5 Out of labor force Retired .3 4.6 17.2 .6 7.3 19.4 Other .2 * * .6 7.1 30.6 Housing status Own .4 5.8 15.1 1.2 8.2 19.5 Rent or other .5 6.3 14.6 1.2 8.3 23.2 Asset holders Lowest third .6 6.4 16.0 1.5 8.1 24.0 Middle third .4 6.0 14.3 1.2 8.6 18.6 Highest third .3 5.4 14.5 .9 8.1 20.3 •Fewer than five families. Historically, the payment-to-income ratio has tended Consumers may repay their loans out of their to be lower for families with higher income. Indeed, financial assets. In both 1983 and 1989, only about for families in the highest third of the payment-to- 4 percent of all families were both among the largest income distribution, those with incomes of less than nonmortgage debt holders and among the smallest $10,000 had a payment-to-income ratio of 32 percent financial asset holders (table 12). In addition, in in 1983 whereas those with incomes of $50,000 and 1983, only 8.6 percent of all families were both more had a ratio of only 14 percent. By 1989, among the largest nonmortgage debt holders and however, the ratio for the lowest income group had among the largest financial asset holders. By 1989, risen to nearly 40 percent and that for the highest this proportion had risen to 9.4 percent. Comparing income group had risen to 19 percent. The relation the distribution of total nonmortgage debt and of family income to debt payments suggests that the financial assets in 1983 with that in 1989 (not shown payment burden grew most rapidly among those in the table) indicates that the largest rise in such debt families with the greatest ability to pay. Neverthe- occurred for families with the greatest holdings of less, the aggregate risk of default could rise if the financial assets. This group held 56 percent of all incomes of these families fell. nonmortgage debt in 1983 and 67 percent in 1989. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Changes in Family Finances from 1983 to 1989 17 12. Joint distribution of families by financiala sset holdings confidentiality and the rights of potential respondents and nonmortgage borrowing, 1983 and 1989 to refuse participation. This second group of families Percent of families was selected specifically to oversample wealthier families.8 Financial asset holders AAmmoouunntt ooff ddeebbtt held The definition of "family" used in the SCF differs Lowest third Middle third Highest third from that commonly used by the Bureau of the 1983 Census. Census families exclude single individuals, who are separately classified as "unrelated indi- No debt 12.4 9.3 15.0 Lowest third 9.3 7.0 4.8 viduals." In the SCF, a given household is divided Middle third 7.5 8.6 5.1 Highest third 4.1 8.5 8.6 into a primary economic unit and other economic units. The primary economic unit, which may be a 1989 single individual, is generally chosen as the unit that No debt 12.3 7.6 13.4 contains the person who either holds the title to the Lowest third 10.6 7.4 4.2 Middle third......... 6.3 9.6 6.4 home or is the first person listed on the lease. The Highest third 4.0 8.8 9.4 primary unit is used as the reference family. Data for the survey were collected by the Survey Research Center at the University of Michigan between August 1989 and March 1990. The achieved sample of 3,143 families represents a response rate APPENDIX: DESIGN OF THE 1989 SURVEY of about 69 percent in the area-probability sample OF CONSUMER FINANCES and a rate of about 34 percent in the tax-data sample. Although the response rate for the tax-data sample The 1989 SCF was designed to gather family-level may appear low by conventional standards, analysis information closely comparable to that obtained in of separate data shows that the sample provides an the 1983 SCF. It collected detailed data on the unbiased representation of key income variables. composition of family balance sheets, the terms of In any survey, there are several potential sources loans, and relationships with financial institutions. of error, including inaccurate survey responses, It also gathered information on the employment nonresponses to the entire survey or to particular history and pension rights of the survey respondent questions in the survey, and errors due to sampling. and the spouse or partner of the respondent and Response errors, which are difficult to measure, are on other demographic, economic, and attitudinal best controlled through the proper training of variables. interviewers and the careful design of question- The survey attempts to provide an accurate naires. Most nonresponse errors arise either because representation of the distribution of these variables a respondent is uncomfortable about providing across U.S. families. To that end, it is distinguished information or because the respondent does not from other household surveys by virtue of its sample know the information being asked. In the SCF, design. Research has indicated that the distributions adjustments for nonresponse errors are made through of income and net worth are skewed, with a relatively systematic imputation of unanswered questions and small proportion of families having a disproportion- through weighting adjustments based on data used in ately large share of both income and net worth. To the sample design for families that refused particiobtain a sufficiently large and unbiased sample of wealthier families, the SCF employs a two-part strategy for sampling families. Of the 3,143 families in the sample used in this article, 2,277 were selected by standard multistage area-probability sampling methods from the forty-eight contiguous states. The 8. A detailed description of the sample design is given in S. Heeringa and L. Woodburn, "Sample Design Documentation, remaining 866 families in the survey were selected 1989 Survey of Consumer Finances," memo, Institute for Social using tax data under the strict rules governing Research, University of Michigan, 1991. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
18 Federal Reserve Bulletin • January 1992 pation.9 Sampling error arises any time survey estimates are based on a sample rather than on a census. Because of the complex design of the SCF, the estimation of potential sampling errors is not straightforward.10 The sampling weights used in the calculations reported in this article were produced by the Survey Research Center at the University of Michigan and were based on the probability design of the original sample. These weights have been adjusted with data from the Bureau of the Census to reflect aggregate information available on the age and geographic distribution and on homeownership patterns of the U.S. population. These weights were further adjusted to minimize the influence of extreme cases on the estimation of net worth. The SCF data are available to the public. Copies of the survey are available on magnetic tape from the National Technical Information Service, Federal Computer Products Center, 5285 Port Royal Road, Springfield, VA 22161 or (703) 487-4763. 9. A description of the imputation procedures is given in A. Kennickell, "Imputation of the 1989 Survey of Consumer Finances: Stochastic Relaxation and Multiple Imputation," Proceedings of the Section on Survey Research Methods, American Statistical Association, 1991. See L. Woodburn, "Using Auxiliary Information to Investigate Nonresponse Bias," unpublished paper (1991), Statistics of Income Division, Internal Revenue Service, for a description of response bias in the SOI sample; and Heeringa and Woodburn for a description of overall weighting adjustments. 10. Selected estimates of sampling errors are given in A. Kennickell and L. Woodburn, "Estimates of the Variance of Changes in the Distribution of Net Worth," memo, Federal Reserve Board, 1991. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
19 Treasury and Federal Reserve Foreign Exchange Operations This quarterly report, covering the period August view, raising questions about the vigor of the U.S. through October 1991, provides information on economy and renewing talk of further declines in Treasury and System foreign exchange operations. U.S. interest rates. At the same time, the Japanese It waspresented by Margaret L. Greene, Senior Vice authorities were trying to dampen expectations that President of Foreign Exchange at the Federal a reduction of the Bank of Japan's official discount Reserve Bank of New York. Roger M. Scher was rate in early July would quickly be followed by primarily responsible for preparation of the report.l another such move. In Germany, new data revealing rising inflation encouraged expectations that the The dollar, having already come down from its Bundesbank would raise official interest rates to post-Gulf-war highs before the beginning of August, contain inflationary pressures before the start of moved irregularly and moderately lower during the important labor negotiations for the coming year. August-October period under review. This develop- Against this background, the dollar showed some ment occurred as the recovery of the U.S. economy vulnerability to selling pressure in early August, appeared both slower to emerge and less vigorous particularly against the mark. Publication of a weak than had been anticipated in earlier months. The July nonfarm payroll employment report, after a dollar eased during the three-month period more succession of other worse-than-expected U.S. than 4 percent against the mark, close to 5 percent statistics, prompted a 2 percent drop in the dollar against the yen, and about 3% percent on a trade- from its high of DM1.7675 on August 2. Evidence weighted basis.2 The U.S. monetary authorities did that the Federal Reserve had eased the federal funds not intervene in the foreign exchange markets during rate 25 basis points on August 6 triggered a new the period. round of selling of the dollar against the mark that took the exchange rate briefly below DM1.70 on August 8. But around mid-August, when the Bundesbank announced that it was raising its official AUGUST Lombard rate less than the market had expected, the As the period opened, the dollar was generally dollar almost completely reversed its decline of the trading with a negative bias, weighed down by previous weeks. Against the yen, the dollar followed widening interest rate differentials adverse to the a similar pattern, easing from a high of ¥138 on dollar. Previously, market participants had expected August 2 to almost ¥135 about a week later before that the United States would emerge quickly out of retracing some of its decline. But these movements recession at a time when some other economies were somewhat more subdued because revelations might be slowing and that the large interest rate surrounding scandals in Japan's financial markets differentials providing a disincentive to investment were weighing on the Japanese currency. in dollar-denominated assets would thereby be News early on Monday, August 19, that Soviet eliminated. But U.S. data released around the President Gorbachev had been removed from office beginning of August caused a reappraisal of this sparked a sudden scramble for dollars. The prospect that the Soviet leader would be replaced by a reactionary government seeking to roll back the 1. The charts for the report are available on request from Publications Services, Board of Governors of the Federal reforms that permitted liberalization in Eastern Reserve System, mail stop 138, Washington, D.C. 20551. Europe and the unification of Germany inflamed the 2. The trade-weighted basis is as measured by the Federal markets' deepest anxieties about the outlook for Reserve Board index. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
20 Federal Reserve Bulletin • January 1992 Europe, in general, and Germany, in particular. EARLY SEPTEMBER Market participants, seeking safe havens for currency, moved funds out of marks and into other In early September, the release of a new round of currencies, including the U.S. and Canadian dollars monthly U.S. data reinforced doubts about the and the Swiss franc—currencies thought to be strength of the U.S. recovery and, in a context of geographically insulated from whatever potential renewed calls by U.S. officials for lower U.S. political disruption and social unrest might ensue. In interest rates, revived the negative market sentiment a matter of hours, the dollar rose 7 pfennigs, or toward the dollar. A steep downward revision in about 4 percent, to touch DM 1.8350, amid fears that U.S. nonfarm payroll data was reported on Septemthe coup attempt would lead immediately to wide- ber 6, after a downward revision in late August of spread violence. By the time New York trading growth in U.S. second-quarter GNP. The following began that day, the dollar had come well off its highs week, the U.S. Bureau of Labor Statistics released after reports circulated that several central banks price data that appeared to suggest that the risks of had been intervening and as the likelihood of violence reigniting inflation were low. These data, along with in the Soviet Union appeared to diminish. In these reports of anemic growth in monetary aggregates, circumstances, no intervention was undertaken by further intensified expectations that more aggressive the U.S. authorities. By Wednesday, August 21, easing by the Federal Reserve lay ahead. On reports circulated that the putsch had failed and that September 13, the Federal Reserve announced a cut Gorbachev would return to office. Market partici- of 50 basis points in the discount rate to 5 percent. pants were impressed by the strength of public At the same time, developments in Germany and support for a more democratic government in the Japan served to improve sentiment for the cur- Soviet Union and at the same time surmised that the rencies of those countries. Market participants felt threat to continued liberalization might induce that, because the Bundesbank's official interest rate Western nations to offer substantial assistance to hike in August was at the lower end of the range of Eastern Europe. Thus, the outlook for Germany and expectations, another tightening of German monethe mark appeared somewhat improved on balance. tary policy could not be ruled out. The contrast in In response, the dollar quickly fell back below its monetary policy orientation in the United States and precoup levels. By the end of August, the dollar was Germany weighed on the dollar relative to the mark. trading near levels that prevailed at the beginning of With respect to the yen, the prospects for interest the month, closing at DM1.7465 and ¥136.80. rates were not so divergent from those in the United The very sharp swings in exchange rates that States. Indeed, the Japanese authorities were seen as occurred around the time of the events in the Soviet exerting downward pressure on Japanese short-term Union, after the volatility that had been evident interest rates to shore up confidence in Japanese beforehand, had an unnerving effect on many market financial markets and to respond to evidence suggestparticipants. There were numerous reports that ing that the Japanese economy was losing steam. At substantial losses arising from the Soviet episode times there was even talk in the market that the had induced many market participants subsequently authorities in Japan and the United States might act to reduce their position-taking activities. The dollar's jointly to lower interest rates. Nevertheless, the yen sharp rise also served as a reminder of the risk of tended to firm relative to the dollar as the outflow of holding short-dollar positions. portfolio capital from Japan appeared to be slowing. The movement of the dollar against the yen, Many market participants believed that Japanese though broadly in the same direction, had been less firms were anxious to improve the yen liquidity of sharp because the developments in the Soviet Union their balance sheets, particularly ahead of the fiscal were perceived to have a less immediate effect half-year reporting date at the end of September. It on Japan than on Germany. As a result, market appeared as well that domestic and foreign investors participants became persuaded of the merits of using were becoming more confident that the time had the Japanese yen as a vehicle for taking positions come to take advantage of attractive buying opporeither in favor of or against the German mark tunities in the Japanese stock market. because the yen might not entail as much price risk Under these circumstances, market participants as the dollar. became more willing to sell dollars, and those who Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Treasury and Federal Reserve Foreign Exchange Operations 21 needed to buy felt content to postpone their dollar 1. Federal Reserve reciprocal currency arrangements purchases. During the first two weeks of September, Millions of dollars the dollar eased more than 3 percent against the mark Amount of to just under DM1.69 as well as 2 percent against the Institution facility, October 31,1991 yen to just under ¥134. i National Bank 250 I Bank of Belgium 1,000 : of Canada 2,000 National Bank of Denmark 250 MID-SEPTEMBER TO LATE OCTOBER Bank of England 3,000 Bank of France 2,000 Deutsche Bundesbank 6,000 Starting in mid-September, the dollar drew support Bank of Italy 3,000 Bank of Japan 5,000 against the mark from developments in Eastern Bank of Mexico Europe. The economic and political situation there Netherlands Bank appeared vulnerable to the kind of sudden political Bank of Norway Bank of Sweden or military crisis that could cause the dollar to Swiss National Bank appreciate substantially, as it had during the Soviet Bank for International Settlements putsch. The military and social disintegration taking Dollars against Swiss Francs Dollars against other authorized European place in Yugoslavia was both a disturbing develop- currencies ment in itself and an example of the risks facing Total countries trying to make the adjustment to democratic governance and market economies. Moreover, domestic and international considerations might talk began to circulate that the Soviet Union might make another increase in official German rates not be able to remain current in its international unlikely. obligations, and these financial pressures were seen Under these circumstances, the pace of the dollar's as posing severe strains on the Soviet economy decline against the mark slowed during the second ahead of the difficult winter season. half of September, even as the exchange rate eased to In early October, economic factors also came to its low for the period under review of DM 1.6577 on lend more support to the dollar. Unexpectedly September 30. Then in October, the dollar actually positive data on U.S. employment and new home firmed a litde against the mark and subsequently sales led market participants temporarily to question fluctuated without clear direction, trading as high as their negative view of U.S. economic prospects. DM1.7218 on October 28. Furthermore, proposals then circulating in the U.S. Against the yen, by contrast, the dollar showed a Administration and the Congress to encourage bank more pronounced tendency to weaken, especially in lending and to cut taxes led market participants to early October. As market participants considered consider that instruments other than monetary policy the implications of a deflation of Japan's asset-price might be employed in efforts to spur the economy. bubble and consumer boom, the prospect loomed As a result, earlier expectations that U.S. interest that Japan might once again develop a troublesome rates would continue to decline until economic current account surplus. In fact, Japan's surplus with activity picked up more decisively in the United Europe had grown, attracting political attention in at States diminished. least some European countries. With the approach This change in expectations roughly coincided of the Group of Seven (G-7) meetings in midwith a revision of expectations concerning German October, talk developed that the major industrialized interest rates. Market participants were becoming nations would agree to seek an appreciation of the increasingly impressed with evidence of decelerating yen as a means of containing Japan's growing economic activity in many of Germany's neighbors. surpluses with Europe and the United States. They were also aware of the intensifying pace of Statements by Japanese government officials suggestnegotiations within the European Community over ing that the yen might appreciate, in addition to a European monetary union. As time passed and the meeting between U.S. Treasury Secretary Brady Bundesbank did not move to raise interest rates and Japanese Finance Minister Hashimoto before again in September, many market participants began the G-7 talks, encouraged these expectations. When to consider the possibility that a combination of the G-7 communique of October 12 was interpreted Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
22 Federal Reserve Bulletin • January 1992 2. Net profits or losses (-) tutes warning of inflationary pressures appeared to on U.S. Treasury and Federal Reserve market participants to give the Bundesbank reason foreign exchange operations1 to tighten monetary policy if it so desired. Millions of dollars Therefore, at the close of the period, market U.S. Treasury attention was again focused on the contrasting Federal Exchange Period and item Reserve Stabilization demands on monetary policy in the major countries. Fund With the existing interest rate differentials also Valuation profits and losses on remaining adverse to the dollar, the U.S. currency outstanding assets and liabilities as of July 31,1991 11,,991199..99 332211..44 moved lower. The dollar's decline against the yen was somewhat constrained in light of clear evidence August 1,1991-October 31,1991 110055..11 99..44 that Japanese monetary policy was also on an easing Valuation profits and losses on outstanding assets trend. Yet, the dollar closed the August-October and liabilities as of October 31,1991 22,,776644..88 11,,113322..66 period at DM1.6713 and ¥130.75, so that the decline that had started in midsummer continued 1. Data are on a value-date basis. well into fall. At these closing levels, the dollar was as suggesting that the yen's recent appreciation had 9 percent below its high against the mark reached in been appropriate, the yen advanced farther against July but still 16 percent above the all-time low the dollar, reaching an eight-month high close to reached in mid-February during the Gulf war. ¥128.50. But thereafter market participants focused Against the yen, the dollar had come down more anew on the prospects for a cut in Japan's official than 8 percent from its high in June to trade only discount rate. Expectations of continued easing of 3 percent above its mid-February lows. Japanese monetary policy were reinforced in late The U.S. monetary authorities did not intervene October by several factors, including data releases during the period. However, the settlement of a showing both a further slowing of growth in Japan's large portion of the U.S. monetary authorities' money supply and a moderation of inflation, official forward dollar purchases against foreign currencomments promoting lower interest rates, and the cies-which, as previously reported, were initiated accession to the prime minister's office of former in June and July to adjust the foreign currency re- Finance Minister Miyazawa—who was viewed as serves of the Federal Reserve and Exchange Stabilisupporting an easier monetary policy. As a result, zation Fund (ESF)—took place during the period. outflows of portfolio capital resumed, the yen gave up some of its gains, and the dollar was again trading • Three of the forward transactions, entered into as high as ¥132.50 on October 28. with the Bundesbank on June 25, settled during the period: $554.9 million on August 27, $553.6million on September 27, and $552.3 million on October 28. LAST DAYS OF OCTOBER For each transaction, 60 percent was executed for the account of the Federal Reserve and 40 percent During the last days of October, sentiment toward for the account of the ESF. Of the original $5,548.5 the dollar turned decidedly negative, and the dollar million of forward dollars purchased at that time, a eased across the board. Market participants began to remaining $1,101 million will be settled by the end forecast an even feebler U.S. recovery than had of the calendar year. been anticipated and to expect further easing of U.S. • The two remaining forward transactions of interest rates. A much worse-than-expected U.S. $1,000 million each against another foreign curconsumer confidence report, coupled with what rency settled, one on August 19 and the other on were viewed as pessimistic comments about the September 18. The dollars purchased were split economy by Federal Reserve Chairman Greenspan, evenly between the Federal Reserve and the ESF. revived expectations that the Federal Reserve would move soon to ease monetary policy. Meanwhile, in In other operations, the ESF continued to execute Germany, a combination of rising money supply transactions as agreed with the International Monegrowth, double-digit wage demands, and reports tary Fund (IMF) to facilitate transactions in special from the Bundesbank and German economic insti- drawing rights (SDRs). During the period, it sold Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Treasury and Federal Reserve Foreign Exchange Operations 23 German marks against SDRs equivalent to $227.4 foreign currency balances at the end of October million, of which $186.4 million was settled during were $2,764.8 million for the Federal Reserve and the period. The ESF also purchased a total of $324.1 $1,132.6 million for the ESF (the latter figure million against sales of SDRs with foreign monetary includes valuation gains oi warehoused funds). authorities in need of SDRs for payment of IMF These valuation gains represent the increase in the charges or for repurchases, of which $273.6 million dollar value of outstanding currency assets valued at was settled during the period. end-of-period exchange rates, compared with rates As previously reported, the ESF repurchased a prevailing at the time the foreign currencies were total of $2,500 million of foreign currency ware- acquired. housed by the Federal Reserve in August. These The Federal Reserve and the ESF regularly invest repurchases reduced the amount of ESF foreign their foreign currency balances in a variety of currency balances warehoused with the Federal instruments that yield market-related rates of return Reserve from $4,500 million equivalent to $2,000 and that have a high degree of quality and liquidity. million equivalent. A portion of the balances is invested in securities During the August-October period, the Federal issued by foreign governments. As of the end of Reserve realized profits of $105.1 million and the October, holdings of such securities by the Federal Treasury realized profits of $9.4 million from the Reserve amounted to $7,583.4 million equivalent, currency exchanges described above conducted and holdings by the Treasury amounted to $8,684.9 directly with foreign monetary authorities. Cumula- million equivalent, both valued at the end-of-period tive bookkeeping or valuation gains on outstanding exchange rates. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
24 Industrial Production and Capacity Utilization Released for publication on November 15 production in October was 1.6 percent below its year-ago level. Total industrial capacity utiliza- The index of industrial production was unchanged in tion decreased 0.2 percentage point in October, to October, the third consecutive month with little or 79.6 percent. no change in the total index. In October, output of Analyzing the production data by market group, consumer goods increased slightly, but output in output of durable consumer goods increased 0.2 permost other major sectors posted small declines. At cent in October, a rise principally reflecting in- 108.2 percent of its 1987 annual average, industrial creased production of light trucks; output of autos, Industrial production indexes Twelve-month percent change Twelve-month percent change Products Total industry Materials Durable manufacturing Manufacturing Nondurable manufacturing Capacity and industrial production Ratio scale, 1987 production = 100 Ratio scale, 1987 production = 100 Total industry Manufacturing Capacity Capacity Production Production Percent of capacity Percent of capacity Total industry Manufacturing Utilization Utilization All series are seasonally adjusted. Latest series, October. Capacity is an index of potential industrial production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
25 Industrial production and capacity utilization1 Industrial production, index, 1987 = 100 Percentage change Category 1991 19912 Sept. 1990 to Julyr Aug.' Sept.1 Oct.p Julyr Aug.' Sept.r Sept. Sept. 1991 Total 108.1 108.0 108.2 108.2 .7 -.1 .2 .0 -1.6 Previous estimate 108.0 108.0 108.1 .6 .0 .1 Major market groups Products, total 108.7 108.5 108.9 108.9 .1 -.2 .4 .0 -1.9 Consumer goods 108.3 108.4 109.2 109.5 .3 .1 .8 .3 .9 Business equipment . 122.5 121.3 122.6 122.6 .4 -1.0 1.1 .0 -2.3 Construction supplies 96.9 96.5 96.7 96.5 -.5 -.4 .2 -.2 -6.4 Materials 107.0 107.2 107.2 107.1 1.6 .1 .0 -.1 -1.2 Major industry groups Manufacturing 108.3 108.4 108.9 108.9 .8 .0 .5 .0 -1.7 Durable 108.1 107.9 108.6 108.3 .7 -.2 .6 -.2 -3.7 Nondurable 108.6 109.0 109.3 109.5 .9 .3 .3 .2 1.1 Mining 102.7 101.5 100.7 100.5 .5 -1.2 -.7 -.2 -2.0 Utilities 110.9 110.2 108.5 108.6 -.5 -.7 -1.5 .1 -.5 Capacity utilization, percent MMMEEEMMMOOO CCCaaapppaaaccciiitttyyy,,, pppeeerrr--ccceeennntttaaagggeee 1990 1991 ccchhhaaannngggeee,,, AAvveerraaggee,, LLooww,, HHiigghh,, SSSeeepppttt... 111999999000 11996677--9900 11998822 11998888--8899 tttooo Oct. July' Aug.' Sept.' Oct. P SSSeeepppttt... 111999999111 Total 82.2 71.8 85.0 83.0 80.0 79.8 79.8 79.6 2.6 Manufacturing 81.5 70.0 85.1 82.2 78.7 78.6 78.8 78.6 2.9 Advanced processing 81.1 71.4 83.6 81.8 77.8 77.5 77.8 77.5 3.2 Primary processing . 82.4 66.8 89.0 84.3 81.1 81.2 81.2 81.1 2.1 Mining 87.4 80.6 87.2 89.9 89.6 88.6 87.9 87.7 .4 Utilities 86.8 76.2 92.3 85.6 86.2 85.5 84.2 84.1 1.2 1. Seasonally adjusted. r Revised, 2. Change from preceding month to month indicated. p Preliminary. which rose shaiply in September, fell back a bit. but textiles and paper were little changed. Output of Because of a drop in the output of appliances, energy materials also remained unchanged. production of durable consumer goods other than Analyzing the production data by industry group, motor vehicles declined in October. Production of manufacturing production was unchanged in Octonondurable consumer goods other than energy ber, and capacity utilization at factories fell 0.2 perproducts rose again in October, continuing its centage point, to 78.6 percent. The operating rates upward trend since spring. Consumer energy for both mining and utilities also decreased slightly. products, which rose sharply in the spring, have After having retraced only part of the sharp declined in recent months. decline that occurred between September 1990 and Production of business equipment other than March 1991, industrial production has leveled off motor vehicles remained weak in October and has since midyear. Utilization in advanced-processing shown little improvement since its low in March. industries, which fell 5 percentage points during the For intermediate products, which includes both sharp downturn, has recovered less than 1 percentconstruction and business supplies, output declined age point and remains well below its 1967-90 again in October. Production of construction sup- average. Operating rates for some industries, most plies has fallen, on balance, since June, after having notably nonelectrical machinery, instruments, and increased rapidly during the spring. Output of printing and publishing, have continued to decline durable materials decreased 0.4 percent in October, since March. Many other advanced-processing with declines evident in most categories. Production industries have shown either partial or full recoverof nondurable materials edged up as chemicals rose, ies. In particular, operating rates at motor vehicle Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
26 Federal Reserve Bulletin • January 1992 assembly facilities and apparel plants have retraced 3 percentage points since then. Although utilimore than two-thirds of their drops. zation rates for most primary-processing industries The operating rate for primary-processing indus- are currently near their 1967-90 averages, operating tries fell about 7 percentage points between Septem- rates in the lumber and stone, clay, and glass inber 1990 and March 1991 and has risen about dustries are still well below their long-run averages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
27 Statements to the Congress Statement by Richard Spillenkothen, Director, the rest of the United States. More recent esti- Division of Banking Supervision and Regulation, mates based on the Federal Reserve's weekly before the Subcommittee on General Oversight sampling of banks suggest that outstanding bank and Investigations of the House Committee on loans continued to contract nationwide during Banking, Finance and Urban Affairs, U.S. the third quarter and that recently they also have House of Representatives, presented in Orlando, fallen in the Southeast. This experience com- Florida, November 15, 1991 pares with annual increases of 4 to 6 percent only a few years ago and with a growth rate of 2.7 I appreciate the opportunity to be here to discuss percent reported by the industry last year. the availability of bank credit and the possible Many factors have contributed to this situaeffect of certain bank supervisory policies on the tion, most notably, in my opinion, the sharp willingness of banks to lend. During the past year decline in commercial real estate values along the and a half, there has been a marked slowdown of east coast and in other parts of the country and bank lending in the Southeast as well as in many the general weakness of economic activity. other parts of the country. This development is These developments have severely harmed the disturbing because an adequate flow of credit to financial condition of some banks and have sound borrowers is essential for a healthy and caused the failure or near failure of others, growing economy. Chairman Greenspan has including, recently, the Southeast Banking Corcited the "credit crunch" as an impediment to a poration in Miami. As a result of these problems, full economic recovery, and this condition is a banks throughout the country have been forced major concern, and relieving it a high priority, of to reassess their growth strategies and pricing the Federal Reserve. policies and to rebuild their financial strength. In As I suspect these hearings will demonstrate, the process, many banks have lost much of their the problem is a difficult one that has no single appetite for risk and have taken steps to improve cause or solution. In my remarks today, I will their credit standards. discuss several factors that have contributed to Such strengthening of credit standards was the slowdown in bank lending and the recent entirely appropriate. During much of the 1980s, performance of commercial banks. I will also U.S. banks and other depository institutions address the questions the subcommittee has provided what has now been shown to be excesraised and will describe steps the Federal Re- sive amounts of credit to certain sectors of the serve has taken to encourage more bank lending. economy. Loan-pricing terms were eased and underwriting standards declined, and many borrowers found substantial financing at attractive LENDING CONDITIONS NATIONWIDE AND rates. Many real estate loans, in particular, were IN THE SOUTHEAST made on the basis of exaggerated evaluations that relied, in turn, on overly optimistic assump- Loan growth at commercial banks has, unques- tions or the prospects of sales at speculative tionably, declined sharply during the past year or price levels. Such lending activity led to overso, not only in the Southeast, but also nation- building in many real estate markets, to the high wide. From June 1990 to June 1991, the volume debt levels of many companies and individuals, of bank loans increased only 0.6 percent in the and to the high volume of nonperforming loans Southeast and actually declined 0.5 percent in that banks hold today. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
28 Federal Reserve Bulletin • January 1992 In recent periods, banks have been requiring as a way to strengthen capital standards of banks more collateral or guarantees, additional bor- around the world and to provide for more equirower equity, stronger loan covenants, and wider table international competition. In short, these profit margins than previously. The effect has standards currently require banks to have capital often been most pronounced for construction equal to 7.25 percent of risk-weighted assets loans and for other lending involving commercial (including off-balance-sheet obligations) and to real estate. This new environment has undoubt- increase that ratio to 8.0 percent by the end of edly prevented some borrowers who may be 1992. creditworthy, or believe they are creditworthy, By far, most U.S. banks met the 1992 standard from obtaining or renewing needed financing, It when it was adopted and continue to meet it now. has also, however, enabled many banks to begin Even some of those banks that do not meet the to strengthen their own conditions and to im- 1992 standard meet the current interim target prove their profit margins. ratio or have holding companies that meet it on a Many businesses, weakened by heavy levels of fully consolidated basis. Nevertheless, some debt and by generally poor economic conditions, banking organizations currently do not meet the have also reduced their spending on fixed capital minimum. Moreover, many banks that meet the and inventories and lessened their financial lever- minimum standard feel the need to operate above age. As a result, their demand for bank credit has minimum levels in view of current problems or fallen off. Indeed, weak credit demand and the their desire to maintain a comfortable margin of banks' own concerns about the economy and safety to weather periods of adversity. As a with industry-specific problems have been con- result of all of these factors, concern about sistently cited by respondents to the Federal capital ratios has forced some banks to raise Reserve's quarterly surveys of senior lending additional capital or curtail asset growth, or both. officers as the principal reasons for restrained The low asset and loan growth rates we have lending. recently seen reflect, in part, the effect of this This explanation of weak demand is also con- concern. It is also reflected in the record amount sistent with the recent decline in bank credit card of equity capital the U.S. banking system has loans, the volume of which is, in the short run, raised during the past year. Although the indusdetermined largely by consumer demand. It may try's restrained lending has been painful for also be supported by the drying up of borrowings many borrowers, we should recognize that a by nonfinancial companies in the U.S. commer- slower or more prudent rate of growth—especial paper market, which have declined more cially by weaker banks—is consistent with an than 3 percent in the first half of this year. overall strengthening of the banking system. Some banks were undercapitalized relative to their risk exposure and needed to take action to SUPERVISORY FACTORS improve their condition. Indeed, as noted above, the recent tightening of credit has many of its Other factors cited as contributing to the "credit roots in the excesses of the 1980s. Many of the crunch" and of specific interest to the subcom- weaker credits extended during that period have mittee relate to the supervisory policies and resulted in heavy losses and have made the procedures of the bank and thrift regulatory industry's task of achieving desired capital levels agencies—or to possible misunderstandings of more difficult. these policies by depository institutions. Of par- Examination policies—as they are impleticular concern is the effect of certain bank mented by examiners and understood by bankexamination procedures and the new risk-based ers—have, in some cases, been a matter of capital standards. Let me address the capital controversy in explaining the credit conditions. I standards first. would certainly not deny that in some cases As you may know, the current capital stan- examiners may have been too severe in their dards were adopted in early 1989 after years of assessments of bank credits or that some bankinternational negotiations and were agreed upon ers, in perceiving a new supervisory approach, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to the Congress 29 have been overly conservative and excessively EFFORTS TO EASE CREDIT CONDITIONS cautious in their own lending practices. Assessing the quality of existing loans and new loan I would like to review briefly some of the superrequests requires a material degree of human visory steps we have taken to communicate our judgment on the part of both bankers and bank policies and ease the problems caused by any supervisor that is sometimes wrong. unnecessary and excessive tightening in the I would like to emphasize, however, that the availability of bank credit. First of all, as the current procedures Federal Reserve examiners subcommittee knows, the Federal Reserve has use to evaluate loans—and real estate loans, in on several recent occasions moved to reduce particular—are not conceptually different from short-term interest rates. Its own discount rate, those they have used in the past. Both now and which it charges on loans to depository institupreviously, examiners have placed substantial tions, has been lowered by the Board of Goverimportance on the strength, commitment, and nors five times in the past twelve months, and the performance of the borrower; the ability of the prime rate charged by large banks has declined collateral to generate cash flow and service debt 2Vi percentage points over this period. In addiover time; the results of recent appraisals; and tion, the reserve requirement on nontransaction current market conditions. liabilities was reduced from 3 percent to 0 around However, an important difference is that the the beginning of the year in an effort to encourage lending and economic environment itself has more lending by reducing funding costs to deposchanged. Currently, many commercial real estate itory institutions. markets throughout the United States are more In other actions, officials of the Federal Reclearly saturated with excess office space than serve and at other banking agencies have met on they have been in the past, and the market values numerous occasions with bankers and with bank of many properties have sharply declined. In examiners to communicate and clarify their bank many cases, this decline has left the market value supervisory policies and to emphasize the imporof a loan's collateral below the loan's outstanding tance of banks continuing to lend. On March 1, balance. In view of these conditions, bankers the agencies adopted a joint statement that themselves are identifying sizable losses even at spelled out their intent in greater detail. That current prices and believe that the value of statement specifically encouraged banks to work collateral underlying many existing loans may with troubled borrowers, consistent with sound continue to fail. banking practices. It also indicated that even Once again, the importance of judgment is banks that do not meet the minimum capital critical. None of us wants to worsen conditions standard are not necessarily required to stop for banks or to discourage bank lending to sound making sound loans to creditworthy borrowers, borrowers. Nor, however, do we want to over- provided they had reasonable and effective plans look problems or engage in a program of forbear- in place to achieve adequate capital levels. ance that may ultimately increase the cost of The statement also directed examiners to conbank failures. Proper balance is the key. sider the stabilized capacity of real estate prop- Because of these uncertainties, the supervi- erty to service debt and not to base their evalusory agencies have taken special efforts to clarify ation of a real estate loan solely on the current their policies. We want examiners to evaluate the market or liquidation value of its collateral. Anloans rigorously and truthfully, but we do not other provision indicated that banks with conwant them simply to extend the current unfavor- centrations in certain economic sectors could able market trends indefinitely into the future. continue making loans to borrowers in such Similarly, we want banks to understand that sectors if the borrowers were sound and if pruthey may and, indeed, should work with trou- dent risk controls and programs were in place to bled borrowers and avoid foreclosures when reduce the concentrations. possible. If considered necessary, these work- The Federal Reserve has undertaken special out efforts may involve the extension of addi- efforts to ensure that its examiners and other tional financing. supervisory personnel understand these and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
30 Federal Reserve Bulletin • January 1992 other supervisory policies. Toward that purpose, however, that the banking agencies have directed the Federal Reserve issued a supplemental state- substantial time and effort toward the issue of ment in July to its own bank supervisory person- credit conditions. To the extent that certain nel. That supplement elaborated on parts of the supervisory policies—or a lack of clear under- March 1 guidance but also discussed the impor- standing of such policies—have created unwartance of banks refinancing or renewing loans to ranted impediments to lending by some banks, I sound borrowers (including those in the real believe that the actions we have taken should estate sector) in the absence of well-defined help to improve the situation, without underminweaknesses that jeopardize their repayment. ing the integrity of the supervisory process. Most recently, the federal banking agencies have announced further steps to address the potential effect of supervisory policies on credit CONCLUSION availability. This latest statement also elaborates on the statement of March 1 and emphasizes that In closing, I would like to assure the subcommitexaminers should consider factors other than a tee that the Federal Reserve recognizes the need property's liquidation or current appraised value for banks to meet legitimate credit demands and when evaluating real estate loans. In particular, that it is doing all that it believes it can do at this the statement indicates that a performing real time to increase the availability of credit to sound estate loan should not be criticized or charged off borrowers in a prudent and responsible manner. solely because the current value of the underly- Its recent efforts to lower interest rates and to ing collateral has declined to an amount less than clarify its supervisory policies should have posithe loan balance. Rather, such actions should tive effects in removing unnecessary obstacles to only occur when well-defined weaknesses exist credit extension. that jeopardize repayment of the loan. In recent years, a portion of the U.S. banking In these actions, we have endeavored to de- system has experienced substantial stress, a high velop reasonable procedures that balance consid- rate of failure, and poor profitability. Undereration of current market conditions with the standably, and prudently, the industry's appetite long-term or stabilized value of what is inher- for risk has declined, and its need to generate ently an illiquid asset. This approach is prefera- improved earnings has become clear. Accordble to one that relies solely on appraisals that can ingly, many banks have tightened their credit be exaggerated in both the upside and downside standards and are in the process of strengthening phases of the real estate cycle. The new mea- their own financial condition. Nevertheless, sures also include procedures to ensure that there remain many healthy banks with strong examiners are properly applying relevant policy financial profiles that are looking to make sound statements to loan evaluations as well as a pro- loans. posal to provide greater flexibility for bank hold- This transition process is painful but—at least ing companies to include certain preferred stock to a large degree— nonetheless necessary. Terms in meeting risk-based capital standards. Finally, of lending have changed and generally for the the Federal Reserve, together with the other better. Although we all want to minimize the federal banking agencies, is reviewing its existing harm to truly creditworthy customers, we also procedures for allowing banks to appeal exam- want strong and responsible banks—banks that iner decisions with the aim of supplementing or have the capability to serve the long-term needs strengthening these procedures. of individuals and businesses in a sound and It is difficult to determine at this point what growing economy. effect the recent efforts to clarify supervisory In the final analysis, we should recognize that policies will have on the availability of bank the U.S. financial sector is a highly competitive credit. Many factors other than examiner actions industry. Examiners are evaluating loans, but have contributed to tighter credit conditions, and they are not preventing banks from extending these other factors must change before condi- them. Bankers are well aware that if they fail to tions will materially improve. I would stress, meet the needs of creditworthy borrowers, they Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to the Congress 31 risk losing those customers permanently to other is to contribute to a climate in which banks make lenders. Unless supervisory policies are unduly loans to creditworthy borrowers and work conrestrictive—and we have taken steps to prevent structively with borrowers experiencing financial that—this prospect would also encourage banks difficulties, consistent with safe and sound bankto lend to borrowers that they believe are cred- ing practices. In all of these steps, we have been itworthy. guided by the premise that prudent lending stan- We have worked hard to ensure that our dards and effective and timely supervision should supervisory policies are balanced, fair, and pru- not inhibit banking organizations from playing an dent—and that they do not artificially encourage active role in financing the needs of sound, or discourage lending. The intent of these efforts creditworthy borrowers. • Statement by John P. LaWare, Member, Board be required to submit to the Congress every two of Governors of the Federal Reserve System, years a report identifying those countries that do before the Subcommittee on Financial Institu- not offer national treatment to U.S. banks, secutions Supervision, Regulation and Insurance and rities brokers and dealers, or investment advisthe Subcommittee on International Develop- ers. A country would be considered to offer ment, Finance, Trade and Monetary Policy of national treatment to foreign firms if it offers "the the Committee on Banking, Finance and Urban same competitive opportunities (including effec- Affairs, U.S. House of Representatives, Novem- tive market access)" as those that are available ber 20, 1991 to their domestic firms. When a significant failure to accord national treatment is found, the secre- I am pleased to appear before you this morning to tary generally would enter into negotiations with present the views of the Federal Reserve Board the country to end the discrimination. The secon two legislative proposals, the Fair Trade in retary may, at his discretion, publish in the Financial Services Act and the Foreign Bank Federal Register a determination that a country Supervision Enhancement Act of 1991. Each of does not give national treatment; if he does so, these proposals has important ramifications for regulatory agencies would have discretionary the U.S. financial system, the former because it authority to use such a determination as a basis embodies a fundamental shift in U.S. policy for denying applications by financial institutions regarding foreign financial firms from one of from that country to make acquisitions or start national treatment to one of reciprocal national new activities. treatment and the latter because it would Another proposal, H.R.3503, entitled the Fair strengthen the existing supervisory framework Trade in Financial Services Act of 1991, would governing foreign bank operations in the United go a step further by eliminating the discretion States. Given our direct responsibilities for finan- available to the Secretary of the Treasury and cial services generally, and foreign banks in mandating publication by the secretary when a particular, the Federal Reserve has a special finding is made that a country does not provide interest in these two bills. I shall first discuss the national treatment. Thus, H.R.3503 would estab- Fair Trade Act and then turn to the Foreign Bank lish standards that make it more likely that Supervision Enhancement Act. reciprocity sanctions would be imposed. Second, if a determination with respect to a country is published in the Federal Register, FAIR TRADE IN FINANCIAL SERVICES ACT institutions from that country that are already operating in the United States may not com- I would like to focus on two major elements of mence "any new line of business" or conduct the proposed Fair Trade in Financial Services business from a "new location" without obtain- Act as passed by the U.S. House of Representa- ing prior approval from the appropriate regulatives. First, the Secretary of the Treasury would tors. This provision would apply even to new Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
32 Federal Reserve Bulletin • January 1992 U.S. activities or U.S. offices for which no fundamentally, the motivation also is to provide approval process is currently required for either U.S. consumers of financial services with access domestic or foreign banks. For example, a for- to a deep, varied, competitive, and efficient eign-owned U.S. bank may decide to begin to banking market in which they can satisfy their offer consumer mortgage lending or investment financial needs on the best possible terms. advisory services. Currently, no application for As the Federal Reserve has previously stated regulatory approval is required for either a do- in connection with this proposed legislation, the mestic or a foreign-owned U.S. bank to com- U.S. policy of national treatment has served the mence these activities. However, under the pro- United States well. The U.S. banking market, posed act, such activities by a foreign-owned and U.S. financial markets more generally, are U.S. bank would be viewed as "new lines of the most efficient, most innovative, and most business," requiring regulatory approval. sophisticated in the world. It is not a coincidence The objectives of this legislation are important, that our markets are also among the most open to and their achievement is desirable. The Federal foreign competition. Foreign banks, by their Reserve actively supports efforts of the U.S. presence and with the resources they bring from government that encourage other countries to their parents, make a significant contribution to liberalize their financial markets and improve the our market and to our economic growth; they treatment of foreign firms operating in those enhance the availability and reduce the cost of markets. Such liberalization and other actions financial services to U.S. firms and individuals as would provide both improved competitive oppor- well as to U.S. public sector entities. tunities to U.S. financial institutions and greater The proposed act in its various forms would benefits to the economies of the other countries replace the U.S. policy of national treatment through freer trade. In our view, however, this with a policy of reciprocal national treatment. legislation does not guarantee that those objec- Through this legislation, the United States would tives will be achieved and could have unfortu- be saying that we are prepared to forgo some of nate, unintended consequences. The proposal the benefits of foreign banks' participation in our would fundamentally change two basic elements market, including benefits to U.S. consumers in the foundation for participation by foreign generally, if U.S. banks were not allowed to financial firms in U.S. markets—national treat- compete fully and equitably abroad. ment and maintenance of rights lawfully ac- Based on experience to date, the Federal Required, that is, grandfather rights. Both elements serve feels strongly that there are better ways to are worth preserving; national treatment for the encourage other countries to open their markets. benefits it provides and grandfathering for prac- Market forces are an important source of prestical and fairness reasons. sure to induce liberalization. Any country that The principle of national treatment with re- wants to have a financial market with sufficient spect to foreign banks was established as U.S. international stature to compete with New York policy by the International Banking Act of 1978. and London must liberalize and open its market. Despite some individual legislative initiatives in Many countries, including notably—but not recent years, virtually all major industrial coun- only—Japan and Germany, are moving inexoratries acknowledge it as the principle upon which bly in that direction. regulation of the international operations of Nevertheless, the United States has not relied banks ought to be based. Over many years, the solely on allowing the market to determine U.S. government has assumed a leadership role changes, however successful such a strategy in building a consensus around this concept. At ultimately may be. In 1979, after passage of the home, our policy of national treatment seeks to International Banking Act, the Treasury Departensure that foreign and domestic banks have a ment, with the help of other agencies, prepared fair and equal opportunity to participate in our its first National Treatment study, which has markets. The motivation is not merely a commitbeen updated several times and which will be ment to equity and nondiscrimination, although prepared regularly in the future. Based on the such a commitment in itself is worthy. More findings of those reports, the Treasury has en- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to the Congress 33 gaged in bilateral talks with several countries, and procedures that have applied equally to them including Japan. Partly as a consequence of these and to all other banks operating in the United talks, we have seen a substantial degree of liber- States now apply only to U.S.-owned banks, we alization in foreign financial markets. would be denying national treatment to foreign Beyond those efforts, the Treasury, supported banks. We would run the risk of introducing by the Federal Reserve and other agencies and instability and discouraging foreign investment in groups, urged countries of the European Com- our markets. We may also be inviting retaliation munity (EC) strongly, and with some success, to against our banks around the world, a result modify and soften the reciprocity provisions in contrary to the intention of the legislation. their proposed Second Banking Directive so that In an effort to address these types of concerns, it would be clear that subsidiaries of U.S. banks H.R.3503 would provide limited grandfather and bank holding companies would have the rights but only for U.S. subsidiaries owned by same ability as their local competitors to branch banks from Canada and the EC. Moreover, the throughout the EC. The Federal Reserve has grandfather rights granted to banks from the EC participated in a range of committees meeting at are specifically conditioned on the EC and any the Bank for International Settlements in Basle member country not restricting the rights of U.S. and at the Organisation for Economic Co-opera- banks and bank holding companies to operate tion and Development in Paris, where work has under the Second Banking Directive. Thus, even been aimed, in part, at establishing the legal, the grandfather rights available to banks from the supervisory, and regulatory conditions that are a EC are conditioned on reciprocity. It must be precondition for ensuring a "level playing field." recognized, however, that a potential conse- In addition, the Federal Reserve has joined oth- quence of adopting reciprocal requirements in ers in the U.S. government in working to reach a banking legislation would be the adoption of meaningful agreement on trade in financial ser- retaliatory legislation by other countries threatvices within the current Uruguay Round of mul- ening sanctions against our banks if the United tilateral trade negotiations. Consequently, other States were to take some types of action affecting initiatives aim at the same results as this legisla- their banks, especially given that some countries tion but in a less confrontational and possibly do not perceive the U.S. market to be as open as more constructive manner. their own due to geographic or activity limitations applicable to banks. In this regard, the Board has I turn now to grandfathering, a practice widely supported the efforts of the Congress and the accepted internationally as a means of protecting Treasury to achieve reform of the U.S. banking investment in existing foreign banking operations system to make it safer, more efficient, and more at a time of statutory change. U.S. operations of competitive. Such reform is essential if U.S. foreign banks were grandfathered in the Internabanks are ever to be in a position to take advantional Banking Act. With respect to foreign optage of opportunities both at home and in the erations of U.S. banks, the Federal Reserve, foreign markets at which this legislation is aimed. along with others in the U.S. government and the U.S. financial industry, objected strenuously In sum, we have witnessed substantial liberalwhen the EC was considering the elimination of ization and structural reform in financial markets grandfather rights for foreign banks, including abroad over the past decade. Like members of U.S. banks, operating in Europe; in the end, the the Congress, we too would like to see further EC preserved those rights. Consequently, Euro- progress. We would not, however, wish to see pean subsidiaries of U.S. banks may continue to additional progress jeopardized through a proconduct business and expand their operations on cess of escalating retaliatory measures. a national treatment basis. One consequence of the liberalization in finan- If, contrary to this widely accepted practice, cial markets over the past ten to fifteen years has the Congress were to adopt the proposed act, the been the rapid international expansion of banks. United States could no longer hold to a princi- This expansion leads into the reasons that suppled position in advocating liberalization in inter- port the second legislative proposal that I would national circles. By telling existing foreign- like to discuss briefly today, the Foreign Bank owned banks in the United States that the rules Supervision Enhancement Act of 1991. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
34 Federal Reserve Bulletin • January 1992 FOREIGN BANK SUPERVISION proposes to establish an office or buy a bank in ENHANCEMENT ACT OF 1991 the United States unless the foreign bank meets the same standards regarding financial and man- The presence of foreign banks in the United agerial strength that apply to U.S. banks; (2) take States has grown significantly. Whereas interna- into account various factors in approving any tional banking was once the domain of a few applications, including whether the foreign bank large banks from industrialized countries, many is subject to consolidated supervision by its different banks from both developed and devel- home country authority and whether U.S. bank oping countries have now opened U.S. opera- regulators will have adequate access to informations. As already noted, the participation by tion from the bank and its affiliates to determine these banks in the U.S. market has contributed compliance with U.S. law; (3) terminate the U.S. significantly to its liquidity and depth. More than activities of foreign banks for violations of law or 300 foreign banks operate in the United States unsafe or unsound practices; (4) coordinate with holding aggregate assets of more than $800 bil- other regulators and supervisors in examining lion. Given this expansion and some well-know simultaneously the nationwide offices and subproblems associated with the U.S. operations of sidiaries of a foreign bank; and (5) cooperate a few foreign banks, the Board proposed more fully with foreign regulators in sharing information on banks that are operating internastrengthening the regulatory structure governing tionally. The act would also require that foreign foreign bank operations in the United States. bank offices be examined on-site annually. The Foreign Bank Supervision Enhancement Act is intended to fill gaps in the supervisory and In sum, the act is designed to be consistent regulatory framework governing foreign bank with the policy of national treatment for foreign operations in this country. The legislation is banks and to provide the federal regulators with intended to help ensure that the banking policies the same authority over the U.S. operations of of the United States, as established by the Con- foreign banks as they have with respect to dogress, are implemented in a fair and uniform mestic banks. The Board strongly urges the manner with respect to all entities conducting a enactment of the Foreign Bank Supervision Enbanking business in the United States and that hancement Act this year. the sizable foreign bank community in this country adheres to legal requirements and operates in a safe and sound manner. CONCLUSION Currently no uniform nationwide standards apply to foreign banks that choose to enter The Board's attitude toward both the Fair Trade through state-licensed offices. In light of the size Act and the Supervision Enhancement Act reand importance to our banking system of the flects the recognition that foreign banks are, and foreign bank presence, that presence is rightly a will continue to be, important to the U.S. marmatter of national banking policy. This policy, if ket. The Board believes that strengthened superit is to be both fair and effective, must be applied vision of foreign banks is in the national interest on an equitable basis not only as between domes- and also fully consistent with the policy of natic and foreign banks but also among foreign tional treatment. By keeping our market open to banks themselves. In proposing the Supervision well-run and supervised foreign banks, we will Enhancement Act, the Board intended to estab- continue to enjoy the benefits they bring to our lish uniform standards for entry and participation economy. by foreign banks, whether through state or fed- By the same token, the Board does not think it eral license, and to provide a basis for improved is good policy potentially to forgo benefits that coordination and cooperation among state and foreign institutions bring to the U.S. economy by federal supervisors in overseeing foreign bank legislative efforts to open foreign markets to our operations in the United States. banks. The Board recognizes that the implemen- To summarize briefly, the act's major provi- tation of the policy of national treatment is sions would allow the Board to do the following: difficult in a world in which the structures of (1) deny an application by a foreign bank that banking markets in various countries differ sig- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to the Congress 35 nificantly. Lawmakers in each country, including are continuing to make, in improving our own the United States, must balance considerations markets, in opening markets abroad, and in gainof competitive equity with other legitimate con- ing access for U.S. financial firms to those marcerns. It could prove to be a costly mistake if we kets for the sake of trying to force others to were to jeopardize the gains we have made, and adhere to our own timetable. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
36 Announcements LAWRENCE B. LINDSEY: APPOINTMENT AS unexpired term of fourteen years from February 1,1984. A MEMBER OF THE BOARD OF GOVERNORS She would succeed Martha R. Seger. Currently, Dr. Phillips serves as Vice President for Finance and University Services; and Professor of Finance, College of On January 14,1991, President Bush announced his Business Administration at the University of Iowa in Iowa intention to nominate Lawrence B. Lindsey as a City, Iowa. member of the Board of Governors. Dr. Lindsey was subsequently confirmed by the Senate on November 22 and took the oath of office, adminis- CHANGE IN THE DISCOUNT RATE tered by Chairman Greenspan, on November 25. The text of the White House announcement follows: The Federal Reserve Board approved on November 6, 1991, a reduction in the discount rate from The White House 5 percent to AVi percent, effective immediately. Office of the Press Secretary Action was taken against the background of January 14, 1991 sluggish expansion of the monetary and credit aggregates in an environment of abating inflationary The President today announced his intention to nominate Lawrence B. Lindsey, of Virginia, to be a Member of the pressures. The reduction, in part, also realigns the Board of Governors of the Federal Reserve System for the discount rate with other short-term market rates. unexpired term of fourteen years from February 1,1986. In making the change, the Board voted on He would succeed Manuel H. Johnson. Currently, Dr. recommendations submitted by the boards of direc- Lindsey serves as Special Assistant to the President for tors of the Federal Reserve Banks of Boston, New Policy Development at the White House in Washington, D.C. York, Philadelphia, Cleveland, Atlanta, Chicago, and Minneapolis. The Board subsequently approved similar actions by the boards of directors of the SUSAN MEREDITH PHILLIPS: APPOINTMENT AS Federal Reserve Banks of Richmond, Dallas, Kansas A MEMBER OF THE BOARD OF GOVERNORS City, and San Francisco, effective November 6, and of die Federal Reserve Bank of St. Louis, effective President Bush on September 27, 1991, announced November 7. his intention to appoint Susan Meredith Phillips as a member of the Board of Governors. Dr. Phillips was subsequently confirmed by the Senate on Novem- INCREASE IN THE NET TRANSACTION ACCOUNT ber 7, and took the oath of office, administered TO WHICH A 3 PERCENT RESERVE by Chairman Greenspan, on December 2, for the REQUIREMENT WILL APPLY unexpired portion of a term ending January 31, 1998. The Federal Reserve Board announced on Novem- A copy of the White House announcement ber 21, 1991, an increase from $41.1 million to follows: $42.2 million in the amount of net transaction accounts to which a 3 percent reserve requirement The White House will apply in 1992. Office of the Press Secretary The Board also changed from $3.4 million to September 27, 1991 $3.6 million the amount of reservable liabilities of each depository institution that is subject to a reserve The President today announced his intention to nominate Susan Meredith Phillips, of Iowa, to be a Member of the requirement of 0 percent. Board of Governors of the Federal Reserve System for the The Board also increased from $44.0 million to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
37 $44.8 million the deposit cutoff level that is used in The approval requirement will also apply to conjunction with the reservable liabilities exemption certain commodity swap activities when undertaken amount to determine the frequency of deposit outside the United States by U.S. banking organizareporting. tions, under provisions of the Board's Regulation K (International Banking Operations). REVISION TO REGULATION C The Federal Reserve Board announced on Novem- PUBLICATION OF THE ber 20, 1991, revisions to its Regulation C (Home Annual Statistical Digest, 1990 Mortgage Disclosure). The major change requires financial institutions to begin using 1990 census tract The Annual Statistical Digest, 1990is now available. numbers (instead of 1980 numbers) to identify and This one-year Digest is designed as a compact report property locations. source of economic, and especially financial, data. Other changes related to the instructions and form The Digest provides a single source of historical that institutions must use in complying with the continuations of the statistics carried regularly in the annual reporting requirements. The revisions are Federal Reserve Bulletin. effective January 1,1992. This issue of the Digest covers only 1990 unless data were revised for earlier years. It serves to INTERPRETATION TO REGULATION H maintain the historical series first published in Banking and Monetary Statistics, 1941-1970, and The Federal Reserve Board issued on November 25, the Digest for 1970-79, for 1980-89, and yearly 1991, an interpretation that requires state member issues. A Concordance of Statistics will be included banks to obtain Board approval to engage in certain with all orders. The Concordance provides a guide commodity swaps and other transactions linked to to tables that cover the same material in the current prices of commodities or stock indexes. Under the and the previous single-year issues of the Digest, the interpretation to Regulation H (Membership of State ten-year Digest for 1980-89, and the Bulletin. Banking Institutions in the Federal Reserve System) Copies of the Digest at $25.00 each are available these transactions will be considered a change in the from Publications Services, mail stop 138, Board of general character of a bank's business, subject to Governors of the Federal Reserve System, Washing- Board approval. ton, D.C. 20551. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
38 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON OCTOBER 1,1991 equipment remained weak and on balance had changed little since spring after dropping sharply in Domestic Policy Directive late 1990 and early 1991. Total industrial capacity utilization edged up in August; over the course of The information reviewed at this meeting suggested recent months it had retraced only a small part of the on balance that the economy was continuing to decline that occurred between mid-1990 and March recover from the recession but that its performance 1991. Operating rates in manufacturing had recovwas uneven across sectors. Consumer spending was ered to a somewhat greater extent, reflecting in part rising, especially for durable goods, but businesses the rebound in motor-vehicle assemblies. remained cautious about investing in plant, equip- Retail sales fell in August, mostly because of a ment, or inventories. On the production side, the decline in sales of motor vehicles. For July and advance in manufacturing activity continued, al- August together, nonautomotive retail sales were up though the recovery in housing construction ap- considerably on balance. After increasing appreciapeared to have lost some of the momentum evident bly since January, housing starts rose only slightly through the spring, and little growth was occurring further in July and August. The number of permits in much of the service-producing sector. The pickup for construction of single-family homes declined in in production had been reflected primarily in a August and was unchanged from the second-quarter sizable rise in aggregate hours worked rather than in level. Inthemultifamily sector, construction activity the number of jobs. Increases in prices appeared to remained near its thirty-year low. Sales of new be on a gradual downtrend. homes were down in July, while sales of existing In August, total nonfarm payroll employment homes fell in both July and August. retraced part of a July decline and on balance was Shipments of nondefense capital goods, measured little changed since March. Manufacturing employ- in nominal terms, were down on balance over July ment registered widespread gains in August, and the and August. Taking into account the substantial factory workweek rose to its highest level in nearly a recent declines in the prices of computing equipyear. In the private service-producing sector, new ment, however, real outlays for business equipment hires in health and business services displayed apparently rose on balance over the two months as appreciable strength, but the rest of this sector, reduced spending on industrial equipment was more particularly wholesale and retail trade, remained than offset by increased investment in computers weak. Jobs in construction continued to decline, and and, to a lesser extent, transportation equipment. employment reductions occurred in state and local Recent data on orders and shipments of nondefense governments for a second straight month. The capital goods pointed to a further small rise in real civilian unemployment rate was 6.8 percent in both outlays for business equipment. The value of July and August. nonresidential construction put in place in July was substantially below the second-quarter level, reflect- Industrial production posted a moderate further ing the continuing decline in office, other commerrise in August after several months of sizable gains. cial, and hotel construction. Available information Assemblies of motor vehicles slowed in August on new contracts suggested a continuing downtrend when a number of plants were closed temporarily in nonresidential construction. for model changeovers, but output of other consumer durables continued to increase and that of consumer The nominal U.S. merchandise trade deficit nondurables rebounded. Production of business widened substantially in July to a rate considerably Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
39 above its average in the second quarter. In July, the through September, M2 would be little changed and value of imports rose sharply from a low second- M3 would be down at an annual rate of about quarter average; the rise was concentrated in 1 percent. consumer goods, automobiles, and computers. The Open market operations during the intermeeting value of exports changed little in July from a second- period were directed initially toward maintaining quarter level that was high compared with other the existing pressures on reserve positions. Subserecent quarters; the improvement in exports in recent quently, on September 13, the discount rate was months had been the result of the strong performance lowered by Vi percentage point to 5 percent and part of capital goods. The pattern of economic activity in of this decline was allowed to show through to the the major foreign industrial countries continued to federal funds rate. Two technical decreases to be mixed. In western Germany and Japan, growth expected levels of adjustment plus seasonal borrowfell sharply in the second quarter and apparently ing were made during the intermeeting period to remained slow in the third quarter, while economic reflect the abatement of seasonal credit needs. Early activity picked up in some other industrial countries in the period, adjustment plus seasonal borrowing in the second quarter. averaged nearly $400 million. Later, in part because Producer prices of finished goods were unchanged of the decline in seasonal funding needs, the volume over July and August after declining on balance in of borrowing slipped below $350 million. The fedearlier months of the year. Further reductions in eral funds rate averaged around 5Vi percent during food prices in August, notably prices of fresh fruits the first part of the intermeeting period, but after the and vegetables, offset a rebound in the prices of discount rate was reduced, the federal funds rate finished energy goods. Excluding food and energy, edged down to a little above 5 U percent. the increase in producer prices of finished goods in In the period immediately after the August 20 the twelve months ended in August was little meeting, most other market interest rates rose different from the rise over the previous twelve slightly, reflecting in part the absence of an anticimonths. At the consumer level, increases in prices pated easing of monetary policy and data indicating were small in July and August because of declines in that the expansion might be more robust than the prices of food and energy items. Although expected. Treasury bill rates also were boosted by nonfood, non-energy consumer prices had risen an unwinding of the flight to quality and liquidity somewhat faster in recent months, the twelve-month that had been prompted by the attempted coup in the change in this index had continued to edge down. Soviet Union. In subsequent weeks, market rates At its meeting on August 20,1991, the Committee declined as incoming nonfinancial and monetary adopted a directive that called for maintaining the indicators were seen by market participants as existing degree of pressure on reserve positions and portending a sluggish expansion, reduced inflation, that also provided for giving special weight to and an associated easing of monetary policy. The potential developments that might require some average commitment rate on fixed-rate mortgages further easing during the intermeeting period. reached its lowest level since 1977, and the prime Accordingly, die Committee decided that somewhat rate was reduced by Vi percentage point to 8 percent greater reserve restraint might be acceptable or after the easing of monetary policy in midsomewhat lesser reserve restraint would be accept- September. The trade-weighted value of the dollar able during the intermeeting period depending on in terms of the other G-10 currencies fell sharply progress toward price stability, trends in economic over the intermeeting period; much of the drop activity, the behavior of the monetary aggregates, retraced the previous run-up associated with the and developments in foreign exchange and domestic attempted coup in the Soviet Union that began financial markets. The reserve conditions contem- shortly before the August meeting. plated at the August meeting were expected to be After contracting in July, M2 was about unconsistent with a resumption in the growth of M2 changed in August and September. M3 declined and M3 over the balance of the third quarter. How- further in July and August and apparently changed ever, in view of the declines in these aggregates that little in September. Both aggregates were somewhat had taken place since June, the Committee antici- weaker than anticipated at the time of the August pated that, over the three-month period from June meeting. For the year thus far, expansion of M2 and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
40 Federal Reserve Bulletin • January 1992 M3 had been at the lower ends of the Committee's pressed confidence that the relatively moderate rate ranges. of expansion in economic activity that they antici- The staff projection prepared for this meeting pated was likely to be associated with appreciable pointed to a sustained recovery in economic activity; progress in reducing the core rate of inflation over however, because of persisting weaknesses in some the next several quarters. sectors of the economy the pace of the expansion In the course of the Committee's discussion, was projected to remain subdued compared with members commented that the anecdotal reports on past cyclical experience and the risks of a different economic conditions and on business and consumer outcome seemed to be mostly on the downside. sentiment continued to have a generally negative Consumer spending was expected to continue to tone that did not appear to be fully consistent with the provide much of the impetus to the expansion, but a available economic statistics. To a degree, business swing from inventory liquidation to modest accumu- attitudes seemed to reflect perceptions of little lation was projected to supply an additional boost to momentum in business activity and related concerns economic growth during the quarters immediately about the outlook for profits. On the positive side, ahead. As the stimulus from the swing in inventories business conditions in some areas were contributing began to wane during the course of 1992, spending to some optimism, at least among business managers for business equipment was projected to strengthen whose activities tended to be limited to local markets, to some extent. Housing construction also would and the performance of the stock market continued provide some stimulus over the projection horizon. to provide evidence of confidence on the part of Further declines in the construction of commercial many investors. structures were expected to inhibit the economic Turning to the outlook for key sectors of the expansion. Additionally, real purchases of goods economy, members noted that despite reports of and services by the federal government were quite weak retail sales in some parts of the country, assumed to be on a mildly declining trend, and real consumer outlays had been trending upward on spending by many state and local governments was an overall basis since the early part of the year, and expected to be constrained by severe budgetary in the absence of a new adverse shock to consumer problems. The persisting slack in labor and product confidence, consumers were likely to continue to markets, while diminishing over time, was projected provide important support to the overall economic to restrain the rise in labor costs and to foster some expansion. However, the extent of that support slowing in the underlying trend of inflation. might remain somewhat limited because consumer In the Committee's review of prevailing and sentiment was still cautious amid concerns about prospective economic developments, members employment opportunities and personal debt burobserved that the mixed nature of the recent eco- dens. In the circumstances, retailers in many areas nomic information and the uneven economic condi- anticipated relatively sluggish sales during the tions in different parts of the country made it upcoming holiday season. In the context of an particularly difficult to assess the overall state of the already low saving rate, the outlook for retail sales economy. They generally concluded that, on bal- would continue to hinge on growth in disposable ance, the evidence was consistent with a continuing incomes and the latter in turn would tend to be though still sluggish recovery in economic activity constrained by the moderate growth that was and that the prospects remained favorable for a anticipated in overall economic activity. sustained expansion at a moderate pace over the next The members continued to anticipate that a several quarters. Many commented, however, that turnaround from inventory liquidation to at least the risks to the expansion appeared to be tilted at modest accumulation would stimulate the economy least marginally to the downside. Those risks were in the quarters ahead. Available data and anecdotal felt to stem especially from a variety of financial reports suggested that overall nonfarm business strains in the economy, and several members also inventories had continued to decline through July indicated that they were uneasy about the potential and probably over the third quarter as a whole. With implications of the ongoing weakness in broad stocks now at generally low levels, a pickup in final measures of money and credit. With regard to the demands, including expected further growth in outlook for inflation, many of the members ex- exports, was likely to foster some tendency to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Record of Policy Actions of the Federal Open Market Committee 41 rebuild inventories. Looking further ahead, some of stock and bond issuance. Moreover, the balance concern was expressed that, once the expected swing sheets of many financial institutions were improving; in inventories began to abate next year in line with banks, for example, were making considerable the usual cyclical pattern, other sources of economic efforts to increase their capital, work out problem stimulus might not materialize to the extent needed loans, and rationalize their operations. On the other to support continued economic growth at an adequate hand, the balance sheets of many business firms like pace. On the other hand, some members observed those of a significant portion of households were that both the economic statistics and reports from burdened by heavy debt loads. Furthermore, many business contacts were consistent with some pickup contacts referred to the continuing problems of in business spending for equipment, which could small and medium-size businesses in securing well strengthen further as the recovery matured. financing to carry on or expand their operations. In Residential construction also seemed likely to this regard, it was difficult to assess the extent to provide some ongoing stimulus to the expansion. which the weakness in loan extensions through While this sector appeared to have lost some financial intermediaries reflected unwarranted conmomentum during the summer months, declines in straints on credit supplies as opposed to a lack of mortgage interest rates along with anticipated demand from qualified borrowers. Reports from moderate growth in overall economic activity and several parts of the country tended to suggest that, incomes pointed to a gradual uptrend in housing while to some extent credit standards had been construction. The prospective strength of housing tightened further this year, lenders remained willing activity was viewed as likely to be tempered, how- to provide financing to creditworthy borrowers. On ever, by continuing weakness in the multifamily balance, while the members differed in their appraismarket; the latter was adversely affected by high als of the severity and possible implications of the vacancy rates in many local areas and over time by a financing problems of borrowers without access to slower pace of family formations. financial markets, they agreed on the need for Among the negative developments that could be careful monitoring of the availability of adequate expected to limit the strength of the overall eco- credit to support a sustained economic recovery. nomic expansion was the outlook for commercial The members continued to view the outlook for construction. Indeed, the overbuilt condition of inflation as favorable. The moderate rate of ecocommercial space in major markets around the nomic expansion anticipated over the forecast country portended an extended period of weak horizon was expected to be associated with enough activity in this sector of the economy. There were, slack in productive resources to accommodate nonetheless, anecdotal reports that sale prices of further downward adjustments in the underlying commercial real estate might be stabilizing in some rate of inflation. Competition from foreign producers areas and that new and renewal lease prices were no was likely to remain substantial in many domestic longer declining in some markets and indeed might markets. Indeed, overall competitive pressures and have begun to edge up. The government sector also resistance to price increases were strong in key was seen as likely to exert some restraint on the markets and provided a promising setting for overall expansion. Federal government spending progress toward price stability. From a different for goods and services appeared to have swung into a perspective, a number of members observed that the gradual downtrend associated with cutbacks in lagging growth in money, at least as measured by defense spending. At the same time, the budgetary M2 and M3, had favorable implications for prices difficulties affecting many state and local govern- over the longer run. In particular, it was suggested ments were likely to continue to constrain the overall that the restrained growth in money over recent growth in state and local government spending. years would tend to foster lower inflation while Many of the members referred to the potential providing liquidity sufficient to sustain a moderate impact of financial conditions on the outlook for rate of economic expansion. economic activity. In some important respects, In the Committee's discussion of policy for the financial developments could be viewed as favor- intermeeting period, all of the members indicated able. Financial markets were receptive to new that they were in favor of maintaining an unchanged financing activity as evidenced by the large volumes degree of pressure on reserve positions. While the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
42 Federal Reserve Bulletin • January 1992 economy was subject to an unusual array of problems of these aggregates could be expected over the and related uncertainties, the members generally balance of 1991, assuming an unchanged degree of felt that monetary policy was on the right course pressure in reserve markets. Nonetheless, many of under currently prevailing and immediately forsee- the members felt that the behavior of M2 and M3, able economic and financial circumstances. In whose growth for the year to date was at the bottom particular, insofar as could be judged at this point, of the Committee's ranges, needed to be monitored the present policy stance provided an appropriate with special care and, at least in one view, that some balance between the risks of a faltering economic further easing measures might be desirable in the expansion and the risks of little or no progress near term to improve the prospects that monetary toward price stability. The easing steps in recent expansion for the year would be within the Commitmonths and the associated declines in interest rates, tee's ranges. including mortgage rates, appeared to have supplied Turning to possible adjustments to the degree of more monetary stimulus than had yet shown through reserve pressure during the intermeeting period, a to the economy. Several members commented, how- majority of the members indicated a preference for a ever, that the Committee needed to remain particu- directive that was biased at least marginally toward larly alert to indications of renewed weakening in easing. Such a bias was called for in this view by the business activity, especially given the current downside risks in the economy, though a number of financial fragilities in the economy and the likely these members also felt that there should be no difficulty of reviving the economy in the event of strong presumption that any easing would be another downturn. Other members gave somewhat undertaken during the intermeeting period ahead. more weight to the need to avoid over-stimulating The other members indicated that they could support the economy; a failure to take advantage of the an asymmetric directive toward ease though they apparent momentum toward lower inflation would preferred a symmetric intermeeting instruction, have seriously adverse consequences on longer- especially in the context of the further stimulus that term debt markets and the outlook for sustained could be expected to result over time from the earlier economic growth. The members agreed that a steady monetary easing actions. policy course was desirable for now while the At the conclusion of the Committee's discussion, Committee assessed the economy's responses to its all of the members indicated that they favored a earlier easing actions. directive that called for maintaining the existing In the course of the Committee's discussion, the degree of pressure on reserve positions. They also members expressed varying degrees of concern noted their preference or acceptance of a directive about the continuing weakness in the broader that included a slight bias toward possible easing monetary aggregates and overall credit growth. It during the intermeeting period. Accordingly, the was clear that a significant restructuring of household Committee decided that slightly greater reserve and business balance sheets was occurring that restraint might be acceptable during the intermeeting partly involved adjustments to the unusually rapid period or slightly lesser reserve restraint would be buildup of debt during the 1980s and that such acceptable depending on progress toward price restructuring was being reflected in the behavior of stability, trends in economic activity, the behavior of the broader monetary aggregates. Resolutions of the monetary aggregates, and developments in forinsolvent thrift institutions, which in recent months eign exchange and domestic financial markets. The had resumed in volume, also were acting to depress reserve conditions contemplated at this meeting M2 as well as M3. In addition, the more liquid were expected to be consistent with growth of M2 components of the monetary aggregates were and M3 at annual rates of around 3 percent and growing relatively strongly. Under these circum- 1 Vi percent respectively over the three-month period stances, slow growth in broader money and credit from September through December. did not necessarily indicate that monetary policy At the conclusion of the meeting, the following was being too restrictive by damping the expansion domestic policy directive was issued to the Federal of incomes or curtailing demands for goods and Reserve Bank of New York: services. Moreover, a staff analysis prepared for this meeting indicated that some recovery in the growth The information reviewed at this meeting has been Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Record of Policy Actions of the Federal Open Market Committee 43 mixed, but it suggests on balance that economic activity these objectives, the Committee at its meeting in July has been expanding at a moderate pace. Total nonfarm reaffirmed the ranges it had established in February for payroll employment changed little over July and August, growth of M2 and M3 of 2Vi to 6V2 percent and 1 to and the civilian unemployment rate was 6.8 percent in 5 percent, respectively, measured from the fourth quarter both months. Employment in manufacturing continued to of 1990 to the fourth quarter of 1991. The monitoring advance in August, and industrial production posted a range for growth of total domestic nonfinancial debt also further rise after several months of sizable gains. was maintained at 4V2 to 8V2 percent for the year. For Consumer spending increased considerably on balance in 1992, on a tentative basis, the Committee agreed in July to July and August. Recent data on orders and shipments of use the same ranges as in 1991 for growth in each of the nondefense capital goods point to a small increase in real monetary aggregates and debt, measured from the fourth outlays for business equipment, but nonresidential quarter of 1991 to the fourth quarter of 1992. With regard construction has remained weak. Housing starts rose only to M3, the Committee anticipated that the ongoing slightly further in July and August after increasing restructuring of thrift depository institutions would appreciably on balance since January. The nominal U.S. continue to depress the growth of this aggregate relative to merchandise trade deficit widened substantially in July spending and total credit. The behavior of the monetary and was considerably above its average rate in the second aggregates will continue to be evaluated in the light of quarter. Increases in consumer prices have been small in progress toward price level stability, movements in their recent months, owing to declines in food and energy velocities, and developments in the economy and financial prices. markets. Most interest rates have declined further since the In the implementation of policy for the immediate Committee meeting on August 20. The Board of Gover- future, the Committee seeks to maintain the existing nors approved a reduction in the discount rate from 5Vz to degree of pressure on reserve positions. Depending upon 5 percent on September 13. The trade-weighted value of progress toward price stability, trends in economic the dollar in terms of the other G-10 currencies fell activity, the behavior of the monetary aggregates, and sharply over the intermeeting period; much of the drop developments in foreign exchange and domestic financial retraced the previous run-up associated with the attempted markets, slightly greater reserve restraint might or slightly coup in the Soviet Union that began shortly before the lesser reserve restraint would be acceptable in the August Committee meeting. intermeeting period. The contemplated reserve conditions After contracting in July, M2 was about unchanged in are expected to be consistent with growth of M2 and M3 August and September. M3 declined further in July and over die period from September through December at August and is indicated to have changed little in Septem- annual rates of about 3 and IV2 percent, respectively. ber. For the year thus far, expansion of M2 and M3 has been at the lower end of the Committee's ranges. Votes for this action: Messrs. Greenspan, Corrigan, The Federal Open Market Committee seeks monetary Angell, Black, Forrestal, Keehn, Kelley, LaWare, and financial conditions that will foster price stability and Mullins, and Parry. Votes against this action: None. promote sustainable growth in output. In furtherance of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
45 Legal Developments FINAL RULE—AMENDMENT TO REGULATION A 3. Section 201.52 is revised to read as follows: The Board of Governors is amending 12 C.F.R. Part Section 201.52—Extended credit for depository 201, its Regulation A (Extensions of Credit by Federal institutions. Reserve Banks) to reflect its recent approval of a reduction in discount rates at each Federal Reserve (a) Seasonal credit. The rates for seasonal credit Bank. The discount rate is the interest rate that is extended to depository institutions under section charged depository institutions when they borrow 201.3(b)(1) of Regulation A are: from their district Federal Reserve Banks. The Board acted on requests submitted by the Boards of Direc- Federal Reserve Bank Rate EfiFective tors of the twelve Federal Reserve Banks. The amendments to Regulation A were effective Boston 4.5 November 6, 1991 November 13, 1991. The discount rate changes were New York 4.5 November 6, 1991 Philadelphia 4.5 November 6, 1991 effective on the dates specified in sections 201.51 and Cleveland 4.5 November 6, 1991 201.52. The Board of Governors is amending Richmond 4.5 November 6, 1991 Atlanta 4.5 November 6, 1991 12 C.F.R. Part 201 as follows: Chicago 4.5 November 6, 1991 St. Louis 4.5 November 7, 1991 Minneapolis 4.5 November 6, 1991 1. The authority citation for 12 C.F.R. Part 201 con- Kansas City 4.5 November 6, 1991 Dallas 4.5 November 6, 1991 tinues to read as follows: San Francisco 4.5 November 6, 1991 Authority: Sections 10(a), 10(b), 13, 13a, 14(d) and 19 (b) Other extended credit. The rates for other extended of the Federal Reserve Act (12 U.S.C. 347a, 347b, 343 credit provided to depository institutions under suset seq., 347c, 348 et seq., 357, 374, 374a, and 461); and tained liquidity pressures or where there are excepsection 7(b) of the International Banking Act of 1978 tional circumstances or practices involving a particular (12 U.S.C. 347d). institution under section 201.3(b)(2) of Regulation A are: 2. Section 201.51 is revised to read as follows: Section 201.51—Short-term adjustment credit Federal Reserve Bank Rate EfiFective for depository institutions. Boston 4.5 November 6, 1991 New York 4.5 November 6, 1991 The rates for short-term adjustment credit provided to Philadelphia 4.5 November 6, 1991 depository institutions under section 201.3(a) of Reg- Cleveland 4.5 November 6, 1991 Richmond 4.5 November 6, 1991 ulation A are: Atlanta 4.5 November 6, 1991 Chicago 4.5 November 6, 1991 St. Louis 4.5 November 7, 1991 Minneapolis 4.5 November 6, 1991 Kansas City 4.5 November 6, 1991 Dallas 4.5 November 6, 1991 Federal Reserve Bank Rate EfiFective San Francisco 4.5 November 6, 1991 Boston 4.5 November 6, 1991 New York 4.5 November 6, 1993 These rates apply for the first 30 days of borrowing. Philadelphia 4.5 November 6, 1991 For credit outstanding for more than 30 days, a Cleveland 4.5 November 6, 1991 Richmond 4.5 November 6, 1991 flexible rate will be charged which takes into account Atlanta 4.5 November 6, 1991 rates on market sources of funds, but in no case will Chicago 4.5 November 6, 1991 St. Louis 4.5 November 7, 1991 the rate charged be less than the basic discount rate Minneapolis 4.5 November 6, 1991 plus one-half percentage point. Where extended Kansas City 4.5 November 6, 1991 Dallas 4.5 November 6, 1991 credit provided to a particular depository institution San Francisco 4.5 November 6, 1991 is anticipated to be outstanding for an unusually Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
46 Federal Reserve Bulletin • January 1992 prolonged period and in relatively large amounts, the Section 203.4—Compilation of loan data. 30-day time period may be shortened. (a) Data format and itemization. A financial institution shall collect data regarding applications for, and originations and purchases of, home purchase and home FINAL RULE—AMENDMENT TO REGULATION C improvement loans (including refinancings of both) for each calendar year. These data shall be presented on a The Board of Governors is amending 12 C.F.R. Part register in the format prescribed in Appendix A and 203, its Regulation C (Home Mortgage Disclosure), shall include the following items: including the instructions and reporting form that financial institutions must use in complying with the annual reporting requirements. The major substantive 4. Section 203.6(a) has been revised to read as follows: change requires financial institutions to begin using 1990 census tract numbers (instead of 1980) to identify Section 203.6—Enforcement. and report property locations beginning on January 1, 1992. (a) Administrative enforcement. A violation of the act Effective January 1, 1992, 12 C.F.R. Part 203 or this regulation is subject to administrative sanctions (Home Mortgage Disclosure) and the form and instruc- as provided in section 305 of the act, including the tions thereto (Appendix A to 12 C.F.R. Part 203) is imposition of civil money penalties, where applicable. amended as follows: Compliance is enforced by the agencies listed in Appendix A of this regulation. Part 203—Home Mortgage Disclosure [Amended] 5. Appendix A to Part 203 has been revised to read as 1. The authority citation for part 203 continues to read: follows: Authority: 12 U.S.C. 2801-2810. APPENDIX A TO PART 203—FORM AND 2. Section 203.2(c)(2) has been amended by revising INSTRUCTIONS FOR COMPLETION OF HMD A the first sentence of paragraphs (c)(2) and (e)(2) to read LOAN/APPLICATION REGISTER as follows: Paperwork Reduction Act Notice Section 203.2—Definitions, Public reporting burden for collection of this information is estimated to vary from 10 to 10,000 hours per response, with an average of 200 hours per response, (c) Branch office means: including time to gather and maintain the data needed and to review instructions and complete the informa- (2) Any office of a mortgage lending institution (other tion collection. Send comments regarding this burden than a bank, savings association, or credit union) that estimate or any other aspect of this collection of takes applications from the public for home purchase information, including suggestions for reducing the or home improvement loans. * * * burden, to Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551; and to the Office of Information and Regulatory Af- (e) Financial institution means: fairs, Office of Management and Budget, Washington, DC 20503. (2) A for-profit mortgage lending institution (other I. Who Must File a Report than a bank, savings association, or credit union) whose home purchase loan originations equaled or A. Subject to the exceptions discussed below, banks, exceeded ten percent of its loan origination volume, savings associations, credit unions, and other mortmeasured in dollars, in the preceding calendar year. gage lending institutions must complete a register listing data about loan applications received, loans originated, and loans purchased if on the preceding 3. Section 203.4(a) has been revised to read as follows: December 31 an institution: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 47 1. Had assets of more than $10 million, and computer printed. You must use the format of the 2. Had a home or a branch office in a "metropolitan loan/application register, but are not required to use statistical area" or a "primary metropolitan statis- the form itself. Each page must be numbered, and the tical area" (both are referred to in these instructions total number of pages must be given (for example, by the term "MSA"). "Page 1 of 3"). Example: If on December 31 you had a home or a B. The required data are to be entered in the register branch office in an MSA and your assets exceeded for each loan origination, each application acted on, $10 million, you must complete a register that lists and each loan purchased during the calendar year. the home purchase and home improvement loans Your institution should decide on the procedure it that you originate or purchase (and also lists appli- wants to follow—for example, whether to begin entercations that did not result in an origination) begin- ing the required data when an application is received, ning January 1. or to wait until final action is taken (such as when a B. You need not complete a register—even if you meet loan goes to closing or an application is denied). Keep the tests for asset size and location—if your institution is in mind that an application is to be reported in the a bank, savings association, or credit union that made no calendar year when final action is taken. Report loan first-lien home purchase loans on one-to-four family originations in the year they go to closing; if an dwellings in the preceding calendar year. This exception application has been approved but has not yet gone to does not apply in the case of nondepository institutions. closing at year-end, report it the following year. C. You need not complete a register—even if you meet C. Your institution may collect the data on separate the tests for asset size and location—if your institution registers at different branches, or on separate registers is a for-profit mortgage lender (other than a bank, for different loan types (such as for home purchase or savings association, or credit union) and the home home improvement loans, or for loans on multifamily purchase loans that you originated in the preceding dwellings). But make sure the application or loan calendar year came to less than 10 percent of your numbers (discussed under paragraph V.A.I., below) total loan origination volume, measured in dollars. are unique. D. If you are a for-profit mortgage lender (other than a D. Entries need not be grouped on your register by bank, savings association, or credit union) the asset MSA, or chronologically, or by census tract numbers, test is based on the combined assets of your institution or in any other particular order. and any parent corporation. E. If you are the subsidiary of a bank or savings III. Submission of HMDA-LAR and Release of association you must complete a separate register for Disclosure Statements your institution. You will submit the register, directly or through your parent, to the agency that supervises A. You must submit the data for your institution to the your parent. (See paragraph VI.) office specified by your supervisory agency no later F. Institutions that are specifically exempted by the than March 1 following the calendar year for which the Federal Reserve Board from complying with the fed- data are compiled. A list of the agencies appears at the eral Home Mortgage Disclosure Act because they are end of these instructions. covered by a similar state law on mortgage loan B. You must submit all required data to your supervidisclosures must use the disclosure form required by sory agency in one complete package, with the pretheir state law and submit the data to their state scribed transmittal sheet. An officer of your institution supervisory agency. must certify to the accuracy of the data. C. You are encouraged to provide in a cover letter an II. Required Format and Reporting Procedures approximate count of the total number of line entries contained in your data submission. If you are a depos- A. Institutions are expected to submit data to their itory institution, you also are asked to include a list of supervisory agencies in an automated, machine-read- the MS As where you have a home or branch office. able form unless 100 or fewer application and loan D. The Federal Financial Institution Examination entries are reported. The format must conform exactly Council (FFIEC) will prepare a disclosure statement to the form FR HMDA-LAR, including the order of from the data you submit. Your disclosure statement columns, column headings, etc. Contact your federal will be returned to the name and address indicated on supervisory agency for information regarding proce- the transmittal sheet. When you receive that disclodures and technical specifications for automated data sure statement you must make a copy available for submission. inspection by the public within 30 calendar days of An institution that submits its register in non-auto- the date the statement is received by your institution. mated form must send two copies that are typed or You must make a complete copy available at your Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
48 Federal Reserve Bulletin • January 1992 home office. If you have physical branch offices in 5. The purchase of an interest in a pool of loans other MS As, you must make available, at one branch (such as mortgage-participation certificates). office in each of those MS As, either the complete 6. The purchase solely of the right to service loans. statement or the portion of the statement relating to that MSA. V. Instructions For Completion of Loan!Application Your agency can provide you with HMDA posters Register that you can use to inform the public of the availability of your disclosure statement, or you may print your A. Application or loan information. own posters. 1. Application or loan number. Enter an identifying number that can be used later to retrieve the loan or application file. It can be any number of your choosing (not exceeding 25 characters). You may IV. Types of Loans and Applications Covered and Excluded by HMDA use letters, numerals, or a combination of both. Make sure that all numbers are unique within your A. Types of loans and applications to be reported. institution. If your register contains data for branch 1. Report the data on home purchase and home offices, for example, you could use a letter or a improvement loans that you originated (that is, numerical code to identify the loans or applications loans that were closed in your name) and loans that of different branches, or could assign a certain series you purchased during the calendar year covered by of numbers to particular branches to avoid duplicate the report. Report these data even if the loans were numbers. You are strongly encouraged not to use subsequently sold by your institution. Include refi- the applicant's or borrower's name or social securnancings of home purchase and home improvement ity number, for privacy reasons. loans. 2. Date application received. Enter the date the loan 2. Report the data for applications for home pur- application was received by your institution by chase and home improvement loans that did not month, day, and year, using numerals in the form result in originations—for example, applications MM/DD/YY (for example, 01/15/92). If your instituthat your institution denied or that the applicant tion normally records the date shown on the appliwithdrew during the calendar year covered by the cation form, you may use that date instead. Enter report. "NA" for loans purchased by your institution. 3. In the case of brokered loan applications or 3. Type. Indicate the type of loan or application by applications forwarded to you through a correspon- entering the applicable code from the following: dent, show the data for all applications denied by 1—Conventional (any loan other than FHA, VA your institution (whether or not they would have or FmHA loans) closed in your institution's name). Report the race 2—FHA-insured (Federal Housing Administraor national origin, sex, and income information, tion) unless your institution is a bank, savings association 3—VA-guaranteed (Veterans Administration) or credit union with assets of $30 million or less on 4—FmHA-insured (Farmers Home Administrathe preceding December 31. tion) 4. Report applications that were received in the 4. Purpose. Indicate the purpose of the loan or previous calendar year but were acted upon during application by entering the applicable code from the the calendar year covered by the current register. following: B. Data to be excluded. 1—Home purchase (one-to-four family) Do not report loans or applications for loans of the 2—Home improvement (one-to-four family) following types: 3—Refinancing (home purchase or home im- 1. Loans that, although secured by real estate, are provement, one-to-four family) made for purposes other than home purchase, home 4—Multifamily dwelling (home purchase, home improvement, or refinancing (for example, do not improvement, and refinancings) report a loan secured by residential real property for 5. Explanation of purpose codes. purposes of financing college tuition, a vacation, or Code I: Home purchase. goods for business inventory). a. This code applies to loans and applications 2. Loans made in a fiduciary capacity (for example, made for the purpose of purchasing a residential by your trust department). dwelling for one to four families, if the loan is to 3. Loans on unimproved land. be secured by the dwelling being purchased or by 4. Construction or bridge loans and other temporary another dwelling. financing. b. At your option, you may use code 1 for loans Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 49 that are made for home improvement purposes repairing, rehabilitation, and remodeling purbut are secured by a first lien, if you normally poses. classify such first-lien loans as home purchase b. Do not use this code for loans on individual loans. condominium or cooperative units; use codes 1,2, Code 2: Home improvement. or 3 for such loans, as applicable. a. Code 2 applies to loans and applications for 6. Owner occupancy. Indicate whether the property loans that to which the loan or loan application relates is to be (1) the borrowers have said will be used for owner-occupied as a principal dwelling by entering repairing, rehabilitating, or remodeling one-to- the applicable code from the following: four family residential dwellings, and 1—Owner-occupied as a principal dwelling (2) are recorded on your books as home im- 2—Not owner-occupied provement loans. 3—Not applicable b. Report both secured and unsecured loans. 7. Explanation of codes. c. At your option, you may report data about a. Use code 2 for second homes or vacation home equity lines of credit—even if the credit line homes, as well as rental properties. is not recorded on your institution's books as a b. Use code 2 only for nonoccupant loans, or home improvement loan. If you choose to do so, applications for nonoccupant loans, related to you may report a home equity line of credit as a one-to-four family dwellings (including individual home improvement loan if the borrower or appli- condominium or cooperative units). cant indicates, at the time of application or when c. Use code 3 if the property to which the loan the account is opened, that some portion of the relates is a multifamily dwelling; is not located in proceeds will be used for home improvement. an MSA; or is located in an MSA in which your (See Paragraph 8. "Loan amount," below.) If you institution has neither a home nor a branch office. report originations of home equity lines of credit, d. For purchased loans, you may assume that the you must also report applications for such loans property will be owner-occupied as a principal that did not result in originations. dwelling (code 1) unless the loan documents or Code 3: Refinancings. application contain information to the contrary. a. Use this code for refinancings (and applications 8. Loan amount. Enter the amount of the loan or for refinancings) of home purchase or home im- application. Do not report loans below $500. Show provement loans on one-to-four family residential the amount in thousands rounding to the nearest dwellings. A refinancing involves the satisfaction thousand ($500 should be rounded up to the next of an existing obligation that is replaced by a new $1,000). For example, a loan for $167,300 should be obligation undertaken by the same borrower. But entered as 167 and one for $15,500 as 16. do not report a refinancing if, under the loan a. For home purchase loans that you originate, agreement, you are unconditionally obligated to enter the principal amount of the loan as the loan renew or refinance the obligation, or you are amount. For home purchase loans that you purobligated to renew or refinance the obligation chase, enter the unpaid principal balance of the subject to conditions within the borrower's con- loan at the time of purchase as the loan amount. trol. b. For home improvement loans (both originab. Use this code whether or not you were the tions and purchases), you may include unpaid original creditor on the loan being refinanced, and finance charges in the loan amount if that is how whether or not the refinancing involves an in- you record such loans on your books. crease in the outstanding principal. c. For home equity lines of credit (if you have c. Report a refinancing if the amount outstanding chosen to report them), enter as the loan amount on the original loan, plus the amount of new only that portion of the line that the applicant or money (if any) that is for home purchase or home borrower has indicated, at the time the application improvement purposes, is more than 50 percent of is made or when the account is opened, as being the total new loan amount. Do not report a for home improvement. Report the loan amount refinancing if 50 percent or less of the loan pro- for applications that did not result in originations ceeds or the amount applied for is for home in the same manner. Report only in the year the purchase or home improvement. line is established. Code 4: Multifamily dwelling. d. For refinancings that are to be reported, india. Use this code for loans and loan applications on cate the total amount of the refinancing, including dwellings for five or more families, including the amount outstanding on the original loan and home purchase loans, refinancings, and loans for the amount of new money (if any). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
50 Federal Reserve Bulletin • January 1992 e. For a loan application that was denied or made for the purpose of purchasing another dwelling, withdrawn, enter the amount applied for. report the property location for the property in which f. If you offered to lend less than the applicant the security interest is to be taken. If the home applied for, enter the amount of the loan if the purchase loan is secured by more than one property, offer was accepted by the applicant. If the offer report the location data for the property being purwas not accepted, enter the amount that the chased. (See paragraphs 5. and 6. below for treatment applicant applied for. of loans on property outside the MSAs in which you B. Action taken. have offices.) 1. Type of action. Indicate the type of action taken 1. MSA. For each loan or loan application, indicate on the application or loan by using one of the the location of the property by the MSA number. following codes. Do not report any loan application Enter only the MSA number, not the MSA name. still pending at the end of the calendar year. You will MSA boundaries are defined by the U.S. Office of report that application on your register for the year Management and Budget; use the boundaries that in which final action is taken. were in effect on January 1 of the calendar year for 1—Loan originated which you are reporting. A listing of MSAs is 2—Application approved but not accepted by available from your regional supervisory agency or applicant the FFIEC. (In these instructions, the term MSA 3—Application denied refers to both metropolitan statistical area and pri- 4—Application withdrawn mary metropolitan statistical area.) 5—File closed for incompleteness 2. State and county. You must use the Federal 6—Loan purchased by your institution Information Processing Standard (FIPS) two-digit 2. Explanation of codes. numerical code for the state and the three-digit a. Use code 2 when an application is approved but numerical code for the county. These codes are the applicant fails to respond to your notification available from your regional supervisory agency or of approval or your commitment letter within the the FFIEC. Do not use the letter abbreviations used specified time. by the U.S. Postal Service. b. Use code 4 only when an application is ex- 3. Census tract. Indicate the census tract where the pressly withdrawn by the applicant before a credit property is located. decision was made. a. Enter the code "NA" if the property is located c. Use code 5 if you sent a written notice of in an area not divided into census tracts on the incompleteness under section 202.9(c)(2) of Reg- U.S. Census Bureau's census-tract outline maps ulation B (Equal Credit Opportunity) and the (see paragraph 4. below). applicant failed to respond to your request for b. If the property is located in a county with a additional information within the period of time population of 30,000 or less in the 1990 census (as specified in your notice. determined by the Census Bureau's 1990 CPH-2 3. Date of action. Enter the date by month, day, and population series), enter "NA" (even if the popyear, using numerals in the form MM/DD/YY (for ulation has increased above 30,000 since 1990), or example, 02/22/92). you may enter the census tract number. a. For loans originated, enter the settlement or 4. Census tract number. For the census tract numclosing date. For loans purchased, enter the date ber, consult the U. S. Census Bureau's Census of purchase by your institution. Tract/Street Index for 1990, and for addresses not b. For applications denied, applications approved listed in the index, consult the Census Bureau's but not accepted by the applicant, and files closed census tract outline maps. You must use the maps for incompleteness, enter the date that the action from the Census Bureau's 1990 CPH-3 series, or was taken by your institution or the date the equivalent 1990 census data from the Census Bureau notice was sent to the applicant. (such as the Census TIGER/Line File) or from a c. For applications withdrawn, enter the date you private publisher. received the applicant's express withdrawal; or 5. Outside-MSA. For loans on property located you may enter the date shown on the notification outside the MSAs in which you have a home or from the applicant, in the case of a written with- branch office (or outside any MSA), you may enter drawal. the MSA, state, county, and census tract numbers C. Property location. In these columns enter the or you may enter the code "NA" in each of these applicable codes for the MSA, state, county, and columns. census tract for the property to which a loan relates. 6. Nondepository lenders. If you are a for-profit For home purchase loans secured by one dwelling, but mortgage lending institution (other than a bank, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 51 savings association, or credit union), and in the Use the following codes to indicate the race or preceding calendar year you received applications national origin of the applicant or borrower under for, or originated or purchased, loans for home column "A" and of any co-applicant or co-borrower purchase or home improvement adding up to a total under column "CA." If there is more than one of five or more for a given MSA, you are deemed to co-applicant, provide this information only for the have a branch office in that MSA, whether or not first co-applicant listed on the application form. If you have a physical office there. As a result, you will there are no co-applicants or co-borrowers, enter have to enter the MSA, state, county, and census code 8 for "not applicable" in the co-applicant tract numbers for any transactions in that MSA. column. Because you must keep accurate records about 1—American Indian or Alaskan Native lending within MSAs in the current calendar year in 2—Asian or Pacific Islander order to report data accurately the following year, to 3—Black comply with this rule you may find it easier to enter 4—Hispanic the geographic information routinely for any prop- 5—White erty located within any MSA. 6—Other D. Applicant information—race or national origin, 7—Information not provided by applicant in mail sex, and income. Appendix B of Regulation C contains or telephone application instructions for the collection of data on race or 8—Not applicable national origin and sex, and also contains a sample 4. Sex of borrower or applicant. Use the following form for data collection. The form is substantially codes to indicate the sex of the applicant or borsimilar to the form prescribed by section 202.13 of rower under column "A" and of any co-applicant or Regulation B (Equal Credit Opportunity) and con- co-borrower under column "CA." If there is more tained in Appendix B to that regulation. You may use than one co-applicant, provide this information only either form. for the first co-applicant listed on the application 1. Applicability. You must report this applicant form. If there are no co-applicants or co-borrowers, information for loans that you originate as well as enter code 4 for "not applicable." for applications that do not result in an origination. 1—Male a. You need not collect or report this information 2—Female for loans purchased. If you choose not to, enter 3—Information not provided by applicant in mail the codes specified in paragraphs 3., 4., and 5. or telephone application below for "not applicable." 4—Not applicable b. If your institution is a bank, savings associa- 5. Income. Enter the gross annual income that your tion, or credit union that had assets of $30 million institution relied upon in making the credit decision. or less on the preceding December 31, you may— a. Round all dollar amounts to the nearest thoubut need not—collect and report these data. If you sand (round $500 up to the next $1,000), and show choose not to, enter the codes specified in para- in terms of thousands. For example, $35,500 graphs 3., 4., and 5. below for "not applicable." should be reported as 36. c. If the borrower or applicant is not a natural b. For loans on multifamily dwellings, enter person (a corporation or partnership, for exam- "NA." ple), use the codes specified in paragraphs 3., 4., c. If no income information is asked for or relied and 5. below for "not applicable." on in the credit decision (such as in "no income 2. Mail and telephone applications. Any loan appli- verification" type loans), enter "NA." cations mailed to applicants must contain a collec- E. Type of purchaser. tion form similar to that shown in Appendix B, and 1. Enter the applicable code to indicate whether a you must record on your register the data on race or loan that your institution originated or purchased national origin and sex if the applicant provides it. If was then sold to a secondary market entity within the applicant chooses not to provide the data, enter the same calendar year: the code for "information not provided by applicant 0—Loan was not originated or was not sold in in mail or telephone application" specified in para- calendar year covered by register graphs 3. and 4. below. If an application is taken 1—FNMA (Federal National Mortgage Associaentirely by telephone, you need not request this tion) information. (See Appendix B for complete informa- 2—GNMA (Government National Mortgage Astion on the collection of this data in mail or tele- sociation) phone applications.) 3—FHLMC (Federal Home Loan Mortgage Cor- 3. Race or national origin of borrower or applicant. poration) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
52 Federal Reserve Bulletin • January 1992 4—FmHA (Farmers Home Administration) credit references provided; Unacceptable type of 5—Commercial bank credit references provided; No credit file; Limited 6—Savings bank or savings association credit experience; Poor credit performance with 7—Life insurance company us; Delinquent past or present credit obligations 8—Affiliate institution with others; Garnishment, attachment, foreclo- 9—Other type of purchaser sure, repossession, collection action, or judg- 2. Explanation of codes. ment; and Bankruptcy. a. Enter the code 0 for applications that were d. Code 4 corresponds to: Value or type of denied, withdrawn, or approved but not accepted collateral not sufficient. by the applicant; and for files closed for incom- e. Code 6 corresponds to: Unable to verify credit pleteness. references, Unable to verify employment, Unable b. If you originated or purchased a loan and did to verify income, and Unable to verify residence. not sell it during that same calendar year, enter f. Code 7 corresponds to: Credit application inthe code 0. If you sell the loan in a succeeding complete. year, you need not report the sale. g. Code 9 corresponds to: Length of residence, c. If you conditionally assign a loan to GNMA in Temporary residence, and Other reasons speciconnection with a mortgage-backed security fied on notice. transaction, use code 2. d. Loans "swapped" for mortgage-backed securities are to be treated as sales; enter the type of VI. Federal Supervisory Agencies entity receiving the loans that are swapped as the purchaser. Send your loan/application register and direct any e. Use code 8 for loans sold to an institution questions to the office of your federal supervisory affiliated with you, such as your subsidiary or a agency as specified below. If you are the nondeposisubsidiary of your parent corporation. tory subsidiary of a bank, savings association, or F. Reasons for denial. credit union, send the register to the supervisory 1. You are not required to enter the reasons for the agency for your parent institution. denial of an application. But if you choose to do so, A. National banks and their subsidiaries. District you may indicate up to three reasons by using the office of the Office of the Comptroller of the Currency following codes: supervising the national bank. 1—Debt-to-income ratio B. State member banks of the Federal Reserve Sys- 2—Employment history tem, their subsidiaries, and subsidiaries of bank hold- 3—Credit history ing companies. Federal Reserve Bank serving the 4—Collateral district in which the state member bank is located; for 5—Insufficient cash (downpayment, closing institutions other than state member banks, the Fedcosts) eral Reserve Bank specified by the Board of Gover- 6—Unverifiable information nors. 7—Credit application incomplete C. Nonmember insured banks (except for federal 8—Mortgage insurance denied savings banks) and their subsidiaries. Regional Direc- 9—Other tor of the Federal Deposit Insurance Corporation for 2. Leave this column blank if the "action taken" on the region in which the bank or the subsidiary is the application is not a denial. For example, do not located. complete this column if the application was with- D. Savings institutions insured under the Savings drawn or the file was closed for incompleteness. Association Insurance Fund of the FDIC, federally- 3. If your institution uses the model form for adverse chartered savings banks insured under the Bank Inaction contained in the appendix to Regulation B surance Fund of the FDIC (but not including state- (Form C-l in Appendix C, Sample Notification chartered savings banks insured under the Bank Form, which offers some 20 reasons for denial), the Insurance Fund), their subsidiaries, and subsidiaries following list shows which codes to enter. of savings institution holding companies. Regional or a. Code I corresponds to: Income insufficient for other office specified by the Office of Thrift Superviamount of credit requested, and Excessive obli- sion. gations in relation to income. E. Credit unions. National Credit Union Administrab. Code 2 corresponds to: Temporary or irregular tion, Office of Examination and Insurance, 1776 G employment, and Length of employment. Street, N.W., Washington, D.C. 20456. c. Code 3 corresponds to: Insufficient number of F. Other depository institutions. Regional Director of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 53 LOAN/APPLICATION REGISTER CODE SHEET Use the following codes to complete the Loan/Application Register. The instructions to the HMDA-LAR explain the proper use of each code. Application or Loan Information Applicant Information Type of Purchaser Type: Race or National Origin: 0- Loan was not originated or was not 1 -- Conventional (any loan other than FHA, 1 ~ American Indian or Alaskan Native sold in calendar year covered by register VA or FmHA loans) 2 -- Asian or Pacific Islander 1 ~ FNMA (Federal National Mortgage Association) 2 -- FHA-insured (Federal Housing 3 - Black 2 ~ GNMA (Government National Mortgage Administration) 4 - Hispanic Association) 3 -- VA-guaranteed (Veterans Administration) 5 - White 3 - FHLMC (Federal Home Loan Mortgage 4 -- FmHA-insured (Farmers Home 6 - Other Corporation) Administration) 7 - Information not provided by applicant 4 - FmHA (Farmers Home Administration) in mail or telephone application 5 - Commercial bank Purpose: 8 - Not applicable 6 - Savings bank or savings association 7 - Life insurance company 1 -- Home purchase (one-to-four family) Sex: 8 ~ Affiliate institution 2 - Home improvement (one-to-four family) 9 - Other type of purchaser 3 -- Refinancing (home purchase or home 1 -- Male improvement, one-to-four family) 2 - Female 4 -- Multifamily dwelling (home purchase, home 3 - Information not provided by applicant Reasons for Denial (optional) improvement, and refinancings) in mail or telephone application 4 - Not applicable 1 - Debt-to-income ratio Owner-Occupancy: 2 ~ Employment history 3 - Credit history 1 ~ Owner-occupied as a principal dwelling 4 - Collateral 2 ~ Not owner-occupied 5 ~ Insufficient cash (downpayment, closing costs) 3 - Not applicable 6 - Unverifiable information 7 - Credit application incomplete Action Taken: 8 ~ Mortgage insurance denied 9 ~ Other 1 - Loan originated 2 - Application approved but not accepted by applicant 3 -- Application denied by financial institution 4 - Application withdrawn by applicant 5 - File closed for incompleteness 6 - Loan purchased by your institution the Federal Deposit Insurance Corporation for the serve Act (12 U.S.C. 461(b)(ll)(B)), and the adjustregion in which the institution is located. ment is known as the reservable liabilities exemption G. Other mortgage lending institutions. Assistant Sec- adjustment. The Board is also increasing from $44.0 retary for Housing, HMD A Reporting—Room 9233, million to $44.8 million the deposit cutoff level that is U.S. Department of Housing and Urban Develop- used in conjunction with the reservable liabilities ment, 451 7th Street, S.W., Washington, D.C. 20410. exemption amount to determine the frequency of deposit reporting. Effective December 17, 1991. Compliance Dates: FINAL RULE—AMENDMENT TO REGULATION D For depository institutions that report weekly, the low reserve tranche adjustment and the reservable liabili- The Board of Governors is amending 12 C.F.R. Part ties exemption adjustment will be effective on the 204, its Regulation D (Reserve Requirements of De- reserve computation period that begins Tuesday, Depository Institutions) to increase the amount of trans- cember 24, 1991, and on the corresponding reserve action accounts subject to a reserve requirement ratio maintenance period that begins Thursday, December of three percent, as required by section 19(b)(2)(C) of 26,1991. For institutions that report quarterly, the low the Federal Reserve Act (12 U.S.C. 461(b)(2)(C)), reserve tranche adjustment and the reservable liabilifrom $41.1 million to $42.2 million of net transaction ties exemption adjustment will be effective on the accounts. This adjustment is known as the low reserve reserve computation period that begins Tuesday, Detranche adjustment. The Board has increased from cember 17, 1991, and on the corresponding reserve $3.4 million to $3.6 million the amount of reservable maintenance period that begins Thursday, January 16, liabilities of each depository institution that is subject 1992. For all depository institutions, the increase in to a reserve requirement of zero percent. This action is the deposit cutoff level will be used to screen institurequired by section 19(b)(ll)(B) of the Federal Re- tions in the second quarter of 1992 to determine the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
54 Federal Reserve Bulletin • January 1992 Form FR HMDA-LAR OMB No. 7100-0247. Approval expires December 31, 1992 Hours per response: 10 to 10,000 (200 average) LOAN/APPLICATION REGISTER This reportis re(iuired bylaw(12 usc2801-2810ana 12 CFR203) TRANSMITTAL SHEET You must complete this transmittal sheet (please type or print) and attach it to the Loan/Application Register, required by the Home Mortgage Disclosure Act, that you submit to your supervisory agency. Agency Reporter's Identification Number Code Reporter's Tax Identification Number I I I" I I I The Loan/Application Register that is attached covers activity during 19 and contains a total of pages. Enter the name and address of your institution. The disclosure statement that is produced by the Federal Financial Institutions Examination Council will be mailed to the address you supply below: Name of Institution Address City, State, ZIP Enter the name and telephone number of a person who may be contacted about questions regarding your register: I } Name Telephone Number If your institution is a subsidiary of another institution or corporation, enter the name of your parent: Name Address City, State, ZIP Enter the name and address of your supervisory agency (or your parent's supervisory agency): Name Address City, State, ZIP An officer of your institution must complete the following section. I certify to the accuracy of the data contained in this register. Name of officer Signature Date Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LOAN/APPLICATION REGISTER Page of FORM FR HMDA-LAR Agency Reporter's Identification Number Code Name of Reporting Institution City, State, ZIP All columns (except Reasons for Denial) must be completed for each entry. See the instructions for details. 1 1 1 1 1 1 1 ' • 1 1" 1 1 Application or Applicant Information Loan Information Action Taken Property Location A = Applicant CA = Co-Applicant Race or GGrroossss LLooaann National Origin Sex AAnnnnuuaall DDaattee aammoouunntt FFoouurr-- TTwwoo-- TThhrreeee-- IInnccoommee TTTyyypppeee ooofff RRReeeaaasssooonnnsss AApppplliiccaattiioonn OOwwnneerr DDiiggiitt DDiiggiitt DDiiggiitt SSiixx--DDiiggiitt iinn PPPuuurrr--- fffooorrr AA LLoo pp aa pp nn llii cc NN aatt uu iioo mm nn bb ee oo rr rr ((mm RR mm eecc //dd ee dd iivv // ee yy dd yy )) TTyyppee pp PP oo uu ss rr ee -- pp OO aa cc nn cc cc uu yy -- ss tt aa hhoo nn uu dd -- ss TTyyppee ((mmmm DD // aa dd tt dd ee // yyyy)) NNuu MM mm SS bb AA ee rr CC SStt oo aa dd tt ee ee CC CC oo oo uu dd nn ee ttyy CC TT ee rr nn aa ss cc uu tt ss A CA A CA ss tt aa hh nn oo dd uu ss -- ooo ccc fff hhhaaa LLLooo ssseee aaa rrr nnn (((OOO DDD ppp eee tttiii nnn ooo iii nnn aaa aaa lll lll))) Example of Loan Originated L|B| - |6|8|7|4|3|9| | | | | | | [ | | | | | | | | 01/15/92 2 1 1 65 1 02/22/92 8840 51 059 4 | 2 | 1 | 9 | . |8|5 3 8 1 4 24 7 Example of Application Denied 0 | 1 | 2 | 3 |4 | 5 | 6 | 7 | 8 | 9 | - | 9 |8 | 7 | 6 | 5 |4 |3 |2 | 1 | 0 | | | | 03/20/92 1 1 1 125 3 04/30/92 0450 01 015 0|0|2,1|.|0|0 5 4 2 1 55 0 4 1 5 1 1 1 ! 1 1 ! 1 1 1 1 1 1 - 1 1 1 1 1 1 • 1 1 1 1 1 I ll 1 1 1 1 - 1 1 I ll 1 l l 1 • 1 1 1 1 1 1 1 1 1 1 1 1 - 1 1 I ll 1 1 1 1 l 1 1 • 1 1 1 1 1 1 • 1 1 I I 1 • 1 1 1 1 1 1 1 1 1 1 1 1 - 1 1 1 1 I 1 I I 1 1 I 1 l l 1 • 1 1 I ll 1 1 1 1 • 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 • 1 1 I ll 1 1 1 1 1 l 1 • 1 1 t i ll 1 l 1 1 - 1 1 1 1 1 1 1 1 1 • 1 1 OHiQ 1 1 1 1 1 1 1 1 l l 1 • 1 1 5 1 1 1 1 1 l l l • 1 1 *—. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 • 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 • 1 1 1 1 II 1 l l l • I l 2 a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
56 Federal Reserve Bulletin • January 1992 reporting frequency for the twelve month period that The interpretation of the provisions of Regulation H begins in September 1992. provides that engaging in certain activities relating to Effective December 17, 1991, 12 C.F.R. Part 204 is commodities, including commodity- or equity-linked amended as follows: activities such as commodity or stock index swaps, will be considered to be a change in the general Part 204—Reserve Requirements of Depository character of a bank's business, and that state member Institutions banks must obtain the Board's approval under Regulation H to engage in such activities. Under the provi- 1. The authority citation for Part 204 continues to read sions of the Board's Regulation K, International Bankas follows: ing Operations, this approval requirement will also apply to certain commodity swap activities when Authority: Sections 11(a), 11(c), 19, 25, 25(a) of the undertaken outside of the United States by U.S. Federal Reserve Act (12 U.S.C. 248(a), 248(c), 371a, banking organizations. 371b, 461, 601, 611); section 7 of the International Effective December 3, 1991, 12 C.F.R. Parts 208 Banking Act of 1978 (12 U.S.C. 3105); and section 411 and 211 are amended as follows: of the Garn-St Germain Depository Institutions Act of 1982 (12 U.S.C. 461). Part 208—Membership of State Banking Institutions in the Federal Reserve System 2. In section 204.9 paragraphs (a)(1) and (a)(2) are revised to read as follows: 1. The authority citation for Part 208 continues to read as follows: Section 204.9—Reserve requirement ratios. Authority: Sections 9,11(a), 11(c), 19,21,25, and 26(a) (a)(1) Reserve percentages. The following reserve of the Federal Reserve Act, as amended (12 U.S.C. ratios are prescribed for all depository institutions, 321-338, 248(a), 248(c), 461, 481-486, 601, and 611, Edge and Agreement Corporations, and United respectively); sections 4 and 13© of the Federal De- States branches and agencies of foreign banks: posit Insurance Act, as amended (12 U.S.C. 1814 and 1823(j), respectively); section 7(a) of the International Banking Act of 1978 (12 U.S.C. 3105); sections 907- Category Reserve requirement 910 of the International Lending Supervision Act of Net transaction accounts1 1983 (12 U.S.C. 3906-3909); sections 2, 12(b), 12(g), $0 to $42.2 million 3 percent of amount 12(i), 15B(c)(5), 17, 17A, and 23 of the Securities over $42.2 million $1,266,000 plus 12 percent of amount over $42.2 million Exchange Act of 1934 (15 U.S.C. 78b, 781(b), 781(g), 78o-4(c)(5), 78q, 78q-l, and 78w, respectively); sec- Nonpersonal time deposits 0 percent Eurocurrency liabilities 0 percent tion 5155 of the Revised Statutes (12 U.S.C. 36) as amended by the McFadden Act of 1927; and sections 1. Dollar amounts do not reflect the adjustment to be made by the 1101-1122 of the Financial Institutions Reform, Renext paragraph. covery, and Enforcement Act of 1989 (12 U.S.C. (a)(2) Exemption from reserve requirements. Each 3310-3351). depository institution, Edge or agreement corporation, and U.S. branch or agency of a foreign bank is 2. Section 208.128 is added to read as follows: subject to a zero percent reserve requirement on an amount of its transaction accounts subject to the low Section 208.128—Commodity- or Equity-linked reserve tranche in paragraph (a)(1) of this section Transactions. not in excess of $3.6 million determined in accordance with section 204.3(a)(3) of this part. State-chartered banks that are members of the Federal Reserve System are required to obtain the approval of INTERPRETATION—AMENDMENTS TO the Board under Regulation H (Membership of State REGULATIONS HAND K Banking Institutions in the Federal Reserve System) before permitting any change to be made in the general The Board of Governors is amending 12 C.F.R. Parts character of their business or in the scope of the 208 and 211, its Regulation H (Membership of State corporate powers they exercised at the time of admis- Banking Institutions in the Federal Reserve System) sion to membership. The Board has considered and Regulation K (International Banking Operations). whether engaging in transactions linked to commodity Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 57 or equity security prices or indices would represent a cations to continue such activities should be submitted change in the general character of the business of a within 60 days after the date of publication of this state member bank. notice. Banking organizations have developed a number of Transactions linked to securities or monetary metals commodity- or equity-linked transactions in which a that a state member bank is authorized to purchase portion of the return is linked to the price of a and hold directly will not be considered to be a change particular commodity or equity security or to an index in the general nature of the bank's business, and of such prices. These transactions have been offered in approval will not be required.2 Additionally, approval a variety of forms, including commodity-indexed de- will not be required for a state member bank to offer posits, loans, debt issues, and derivative products, loan or deposit contracts in which only the interest such as forwards, options, and swaps. In these trans- portion of the return is linked to a commodity or actions, the interest, principal, or both, or payment security even if the bank is not authorized to hold the streams in the case of swaps, are linked to the price of commodity or security. a commodity. In addition, banks are also entering into Applications to engage in commodity-related activexchange-traded commodity or stock-index futures ities should outline the types of transactions and scope and options in order to hedge the exposure inherent in of activities that the bank plans to undertake. The these transactions. These types of transactions have application also should demonstrate that the bank has been linked to a variety of commodities, including the expertise to engage in such transactions and has gold, oil, aluminum, and copper, as well as individual developed adequate policies and controls to govern securities and stock indices. the conduct of these activities and to monitor the With the exception of gold, silver, and, in some associated risks. cases, platinum, banks are not empowered to purchase Recent revisions to Regulation K (International or hold the commodities or equity securities that Banking Operations) permit bank holding company underlie these transactions. Although commodity- subsidiaries, Edge and agreement corporations, and linked transactions settle only in cash, they effectively member banks to act as principal or agent outside of expose banks to commodity or equity market price the United States in swap transactions, subject to any risks. Thus, linking payments to commodities or equi- limitations applicable to state member banks under ties may present risks with which banks generally are Regulation H. Banking organizations that wish to not familiar, and the inability of the bank to purchase engage in swap transactions based on commodities the commodity or equity security to which a transac- that the organizations do not have the authority to tion is linked may increase the difficulty of hedging the purchase directly, therefore, must submit applications exposure created by such transactions. under Regulation K in order to engage in such trans- The Board has determined that engaging in transac- actions. Because Regulation K provides separate autions linked to commodities or securities that a state thority to engage outside of the United States in swap member bank does not have the authority to purchase transactions based on equity securities or indices, and hold directly should generally be considered a approval of these transactions is not required. change in the character of the bank's business unless the transactions are entered into on a perfectly Part 211—International Banking Operations matched basis.1 State member banks that wish to engage in commodity- or equity-linked transactions 1. The authority citation for Part 211 continues to read that are considered to be a change in the general as follows: character of their business should obtain Board approval before initiating these transactions or, in the Authority: Federal Reserve Act (12 U.S.C. 221 et seq.); case of activities commenced prior to the adoption of Bank Holding Company Act of 1956, as amended this interpretation, to continue such activities. Appli- (12 U.S.C. 1841 et seq. ); the International Banking Act of 1978 (Pub. L. 95-369; 92 Stat. 607; 12 U.S.C. 3101 et seq.); the Bank Export Services Act (Title II, 1. The term "perfectly matched," as used in this interpretation Pub. L. 97-290, 96 Stat. 1235); the International Lendrefers to transactions that are entered into on a matched basis, that is, ing Supervision Act (Title IX, Pub. L. 98-181, 97 Stat. offsetting transactions where the counterparties for both transactions have been found before the bank enters into either transaction and the 1153, 12 U.S.C. 3901 et seq.); and the Export Trading transactions are consummated on the same day. Offsetting transactions include transactions that have a price differential to provide the bank with its usual and customary fee or commission for its services. The exemption from prior approval for perfectly matched transactions 2. Gold and silver are the only commodities that banks generally would include mirror image equity swaps executed by a state member have authority to purchase. In states where banks have authority to bank with any affiliate that is authorized under Regulation K to engage deal in platinum, transactions linked to platinum will not be considin equity swaps. ered a change in the general nature of the business of a bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
58 Federal Reserve Bulletin • January 1992 Company Act Amendments of 1988 (Title III, Pub. L. home state, unless such acquisition is "specifically 100-418, 102 Stat. 1384 (1988)). authorized by the statute laws of the State in which [the] bank is located, by language to that effect and not 2. Section 211.603 is added to read as follows: merely by implication."1 In addition, under section 5(a) of the IBA, Allied Irish may not acquire a bank Section 211.603—Commodity swap outside of its home state unless that acquisition would transactions. be permissible under section 3(d) of the BHC Act for a bank holding company from the home state. For text of interpretation relating to this subject, see 12 U.S.C. § 3103(a). Under these statutes, the respecsection 208.128 of this Chapter. tive home state of both Applicants is Maryland. The statute laws of Pennsylvania authorize financial institutions located in any state to acquire Pennsylva- ORDERS ISSUED UNDER BANK HOLDING nia financial institutions on a reciprocal basis.2 Mary- COMPANY ACT land permits an out-of-state bank holding company located in any state within a specified region, which Orders Issued Under Section 3 of the Bank includes Pennsylvania, to acquire a bank located in Holding Company Act Maryland that has been in existence for at least three years. 3 Under the reciprocity requirements, Pennsyl- Allied Irish Banks pic vania permits a Pennsylvania bank to be acquired by Dublin, Ireland an out-of-state bank holding company located in a state with a duration requirement, such as Maryland, First Maryland Bancorp but specifically imposes the identical duration require- Baltimore, Maryland ment on the acquisition. York has been in operation for more than three years. After a review of the Order Approving Acquisition of a Bank relevant statutes and based on the facts of record, the Board has determined that the proposed acquisition is Allied Irish Banks pic, Dublin, Ireland ("Allied Irish"), specifically authorized by the statute laws of Pennsyland its subsidiary, First Maryland Bancorp, Baltimore, vania and that Board approval of the application is not barred by the Douglas Amendment. Maryland ("FMB") (together, "Applicants"), have applied under section 3(a)(3) of the Bank Holding Com- FMB is the second largest banking organization in pany Act ("BHC Act") (12 U.S.C. § 1842(a)(3)) to Maryland, holding deposits of $5.4 billion, representing acquire all of the voting shares of York Bank and Trust 12.4 percent of the total deposits in commercial banks Company, York, Pennsylvania ("York"). in the state. York is the seventh largest banking orga- Notice of the application, affording interested per- nization in Pennsylvania, and holds deposits of $1.2 sons an opportunity to submit comments, has been billion, representing less than one percent of the total published (56 Federal Register 49,482 (1991)). The time deposits in commercial banking organizations in Pennfor filing comments has expired, and the Board has sylvania.4 Applicants do not currently operate a bank considered the application and all comments received subsidiary in Pennsylvania, and consummation of the in light of the factors set forth in section 3(c) of the BHC proposal would not result in any significantly adverse Act. effects upon competition in any relevant banking market. Allied Irish, which controls assets of $28.3 billion, is Section 3(c) of the BHC Act requires in every case the largest banking institution in Ireland and the 174th that the Board consider the financial resources of the largest bank in the world. Allied Irish operates applicant and the banking organization to be acquired. branches in New York, New York, and Chicago, In evaluating this application, the Board has carefully Illinois, that are permitted pursuant to section 5(b) of considered the financial resources of Applicants and the International Banking Act of 1978 ("IBA"). the effect on those resources of the proposed acquisi- 12 U.S.C. § 3103(b). FMB is a multi-bank holding tion. Applicants' capital levels exceed the minimum company that controls the First National Bank of Maryland, Baltimore, Maryland, a bank in the District of Columbia, and a limited purpose consumer credit 1. 12 U.S.C. § 1842(d). A bank holding company's home state is bank in Delaware. that state in which the operations of the bank holding company's subsidiaries were principally conducted on July 1, 1966, or the date on Section 3(d) of the BHC Act, the Douglas Amend- which the company became a bank holding company, whichever is ment, prohibits the Board from approving an applica- later. Id. tion by a bank holding company to acquire control of 2. Pa. Stat. Ann. title 7, § 116(c) (1991). 3. Md. Fin. Inst. Code Ann. § 5-1003(a)(2)(iii)(3) (1991). any bank located outside of the holding company's 4. State deposit data are as of September 30, 1991. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 59 levels established by the Board and would continue to percent of total deposits in commercial banking organibe significantly above the minimum levels following zations in Iowa.1 Boone is the 85th largest commercial consummation of this proposal. Based on these and all banking organization in Iowa, controlling deposits of of the other facts of record, including relevant exam- $57.9 million, representing less than one percent of total ination and inspection reports, the Board believes that deposits in commercial banking organizations in Iowa. financial and managerial factors, as well as the future Upon consummation of this proposal, Ames would prospects of the companies involved, are consistent become the 11th largest commercial banking organizawith approval of this proposal. Considerations relating tion in Iowa, controlling deposits of $295.4 million, to the convenience and needs of the community are representing approximately one percent of total deposalso consistent with approval of this application. its in commercial banking organizations in Iowa. Ac- Accordingly, based on the foregoing and other facts cordingly, consummation of this proposal would not of record, the Board has determined that the applica- result in a significantly adverse effect on the concentration should be, and hereby is, approved subject to tion of commercial banking resources in Iowa. obtaining any necessary approval of the appropriate Ames and Boone operate solely within the Ames state banking agency. The proposal shall not be con- banking market.2 Ames is the largest of the commersummated before the thirtieth calendar day following cial banking and thrift organizations (together "deposthe effective date of this Order, or later than three itory institutions") in the market, representing 24.9 months following the effective date of this Order, percent of the total deposits in depository institutions unless such period is extended for good cause by the in the market.3 Boone is the fourth largest depository Board or the Federal Reserve Bank of Richmond, institution in the market, controlling 6.0 percent of the acting pursuant to delegated authority. total deposits in depository institutions in the market. By order of the Board of Governors, effective Upon consummation of this proposal, Ames would November 27, 1991. control approximately 30.9 percent of the total deposits in depository institutions in the market. The Ames Voting for this action: Chairman Greenspan and Governors banking market would remain moderately concen- Angell, Kelley, and LaWare. Absent and not voting: Gover- trated upon consummation of this proposal; the Hernor Mullins. findahl-Hirschman Index ("HHI") for the market would increase by 304 points to 1351.4 JENNIFER J. JOHNSON Although consummation of this proposal would re- Associate Secretary of the Board sult in an increase in market concentration, sixteen commercial banking organizations and five thrift insti- Ames National Corporation tutions would continue to operate in the market upon Ames, Iowa consummation of this proposal. Based on these and the other facts of record, the Board has determined Order Approving Acquisition of a Bank that consummation of the proposal is not likely to result in a significantly adverse effect on competition Ames National Corporation, Ames, Iowa ("Ames"), a in the Ames banking market. bank holding company within the meaning of the Bank Holding Company Act ("BHC Act"), has applied for the Board's approval under section 3(a)(3) of the BHC 1. All data are as of June 30, 1990. 2. The Ames banking market is approximated by Boone County, Act (12 U.S.C. § 1842(a)(3)) to acquire all of the voting Story County, and Marion, Clear Lake, Ellsworth, Scott, Lyon, and shares of Boone Bank & Trust Company, Boone, Iowa Lincoln townships in Hamilton County, Iowa. ("Bank"), a de novo bank. Bank will then acquire 3. Market share data are based on calculations in which the deposits of thrift institutions are included at 50 percent. The Board previously certain assets and assume certain liabilities of Boone State has indicated that thrift institutions have become, or have the poten- Bank & Trust Company, Boone, Iowa ("Boone"). tial to become, major competitors of commercial banks. See Midwest Financial Group, 75 Federal Reserve Bulletin 386 (1989); National Notice of the application, affording interested per- City Corporation, 70 Federal Reserve Bulletin 743 (1984). sons an opportunity to submit comments, has been 4. Under the revised Department of Justice Merger Guidelines, 49 published (56 Federal Register 46,433 (1991)). The Federal Register 26,823 (June 29, 1984), a market in which the post-merger HHI is between 1000 and 1800 is considered moderately time for filing comments has expired, and the Board concentrated. The Department of Justice has informed the Board that has considered the application and all comments re- a bank merger or acquisition generally will not be challenged (in the absence of other factors indicating anticompetitive effects) unless the ceived, in light of the factors set forth in section 3(c) of post-merger HHI is at least 1800 and the merger increases the HHI by the BHC Act. at least 200 points. The Justice Department has stated that the higher Ames is the 15th largest commercial banking organi- than normal HHI thresholds for screening bank mergers and acquisitions for anticompetitive effects implicitly recognizes the competitive zation in Iowa, controlling two subsidiary banks with effect of limited-purpose lenders and other non-depository financial $237.5 million in deposits, representing less than one entities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
60 Federal Reserve Bulletin • January 1992 The financial and managerial resources and future Notice of the application, affording interested perprospects of Ames, its subsidiary banks and Bank are sons an opportunity to submit comments, has been consistent with approval. The Board also finds that published (56 Federal Register 6026 (1991)). The time considerations relating to the convenience and needs of for filing comments has expired, and the Board has the communities to be served are consistent with ap- considered the application and all comments received proval. in light of the factors set forth in section 3(c) of the BHC Based on the foregoing and other facts of record, the Act. Board has determined that the application should be, Santander, with consolidated assets equivalent to and hereby is, approved. The acquisition shall not be approximately $55 billion, is the third largest banking consummated before the thirtieth calendar day follow- organization in Spain.2 Santander engages in a broad ing the effective date of this Order, or later than three range of banking and financial services throughout the months after the effective date of this Order, and Bank world through an extensive network of offices and shall be opened for business not later than six months subsidiaries. In the United States, Santander mainafter the effective date of this Order. The latter two tains a branch in New York, New York, and an agency periods may be extended for good cause by the Board and an Edge corporation in Miami, Florida. Santander or by the Federal Reserve Bank of Chicago, acting also owns shares of Banco de Santander-Puerto Rico, pursuant to delegated authority. S.A. ("Santander-Puerto Rico"), and Santander Fed- By order of the Board of Governors, effective eral Savings Bank, both in Puerto Rico. Santander- November 13,1991. Puerto Rico operates one branch in New York. RBSG, with consolidated assets equivalent to ap- Voting for this action: Chairman Greenspan and Governors proximately $59.1 billion, is the parent of The Royal Mullins, Angell, Kelley, and LaWare. Bank of Scotland pic, Edinburgh, Scotland ("Royal Bank"), and ranks as the sixth largest banking orga- JENNIFER J. JOHNSON nization in the United Kingdom.3 In the United Associate Secretary of the Board States, RBSG indirectly controls banking subsidiaries in Rhode Island and Massachusetts. Royal Bank Banco de Santander, S.A. de Credito operates a branch in New York City, an agency in Santander, Spain San Francisco, and representative offices in Chicago, Los Angeles, and Houston. RBSG also engages in Order Approving Retention of an Interest in a Bank certain nonbanking activities in the United States Holding Company that are permissible under section 4(c)(8) of the BHC Act. RBSG's home state is Rhode Island under the Banco de Santander, S.A. de Credito, Santander, International Banking Act of 1978 ("IBA") and the Spain ("Santander"), a bank holding company within Board's Regulation K (12 C.F.R. 211). the meaning of the Bank Holding Company Act Section 3(d) of the BHC Act, the Douglas Amend- ("BHC Act"), has applied for the Board's approval ment, prohibits the Board from approving an applicaunder section 3(a)(3) of the BHC Act (12 U.S.C. tion by a bank holding company to acquire any voting § 1842(a)(3)) to retain 9.89 percent of the voting shares shares of or interest in any bank located outside of the of The Royal Bank of Scotland Group pic, Edinburgh, bank holding company's home state unless such ac- Scotland ("RBSG"), and thereby to retain an interest quisition is "specifically authorized by the statute laws in RBSG's subsidiary, Citizens Financial Group, Inc., of the state in which such bank is located, by language Providence, Rhode Island ("CFG"), a bank holding to that effect and not merely by implication."4 The company that controls Citizens Savings Bank and Citizens Trust Company, both in Providence; and Fairhaven Savings Bank, Fairhaven, Massachusetts.1 ownership position to more than 9.89 percent without the prior approval of the Board. Based on this and other commitments and other facts of record, the Board believes that Santander may make 1. Santander also proposes to acquire from time to time additional future open market purchases of RBSG stock, consistent with the shares of RBSG to prevent the dilution of Santander's percentage BHC Act, solely in order to maintain its current ownership interest. ownership that might result from the issuance of share dividends by 2. Banking data are as of March 31, 1991. Country ranking is as of RBSG. Santander may acquire such shares either by electing to December 31, 1990. receive dividends in RBSG shares in lieu of cash or through market 3. Banking data and country ranking are as of September 30, 1990. purchases. The Board notes that a bank holding company may 4. 12 U.S.C. § 1842(d). A bank holding company's home state is acquire, without the Board's prior approval, additional securities that state in which the operations of the bank holding company's received in a stock dividend or stock split that do not alter the bank banking subsidiaries were principally conducted on July 1, 1966, or holding company's proportional share of any class of voting securi- the date on which the company became a bank holding company, ties. (12 C.F.R. 225.11(c). See also 12 C.F.R. 225.103.) Santander has whichever is later. The Board has determined that Puerto Rico is not committed not to acquire any shares of RBSG that would increase its a "state" for purposes of the Douglas Amendment. The Royal Bank of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 61 IBA requires a foreign bank to choose a home state crease the concentration of resources in this or any and to abide by the restrictions of the Douglas Amend- relevant banking market. Accordingly, the Board conment in acquiring any interest in a bank outside its IBA cludes that competitive considerations under the BHC home state.5 Under the IBA and the Board's Regulation Act are consistent with approval. K, Santander's home state would be Rhode Island.6 Section 3(c) of the BHC Act requires in every case Therefore, Santander's acquisition of an indirect inter- that the Board determine that the managerial reest in RBSG's two Rhode Island bank subsidiaries is sources of the Applicant and any company to be not prohibited by the Douglas Amendment or the IBA. acquired are consistent with approval. This applica- With regard to Fairhaven Savings Bank, the statute tion concerns retention of an indirect interest in banks laws of Massachusetts authorize out-of-state bank hold- that was acquired without the necessary prior aping companies to acquire Massachusetts banks or bank proval of the Board, in violation of the BHC Act. The holding companies under certain conditions.7 The record reflects that Santander has not acted in a Board has previously determined that Massachusetts manner indicating a willful violation of the BHC Act. law authorizes Rhode Island bank holding companies to Santander has provided the Board with satisfactory acquire Massachusetts banks or bank holding compa- undertakings concerning its future conduct with regard nies.8 Massachusetts law requires, however, that the to its regulatory compliance program, and has proacquiring bank holding company obtain approval for vided sufficient evidence to convince the Board that the acquisition from the Massachusetts Board of Bank Santander's conduct will be subject to adequate super- Incorporation ("Massachusetts Board"). Based on the vision and will conform to the requirements of the foregoing, the Board has determined that Santander's BHC Act and the IBA. In accordance with its policy acquisition of an indirect interest in Fairhaven Savings regarding violations of the BHC Act and upon exam- Bank is specifically authorized by the statute laws of ination of all the facts of record, the Board has Massachusetts. Accordingly, Board approval of this concluded that Santander's violation does not reflect acquisition is not prohibited by the Douglas Amend- so adversely on its managerial resources as to warrant ment or the IBA, provided Santander obtains approval denial of this application. from the Massachusetts Board. The financial resources and future prospects of Santander and RBSG compete directly in the Metro- Santander, RBSG, CFG, and their subsidiaries are politan New York-New Jersey banking market9 where consistent with approval. Considerations relating to each holds less than 1 percent of total deposits in the the convenience and needs of the communities to be market. Consummation of this proposal would not served are also consistent with approval. result in any adverse effects upon competition or in- Based on the foregoing and other facts of record, the Board has determined that the application should be, and hereby is, approved. Canada, 66 Federal Reserve Bulletin 582 (1980); New Mexico Ban- By order of the Board of Governors, effective quest Investors Corporation, 69 Federal Reserve Bulletin 876 (1983). November 25, 1991. 5. 12 U.S.C. § 3103. 6. In connection with this application, Santander has elected to change the location of its home state for purposes of the IBA from Voting for this action: Chairman Greenspan and Governors Florida to Rhode Island pursuant to the provision of Regulation K Mullins, Angell, and Kelley. Absent and not voting: Goverpermitting a one-time change of home state. 12 C.F.R. 211.22(c). nor La Ware. Section 211.22(c) provides that a foreign bank may change its home state once if prior notice is filed with the Board and if domestic branches established and investments in banks acquired in reliance on JENNIFER J. JOHNSON its original home state selection are made to conform to those that Associate Secretary of the Board would have been permissible had the new home state been selected as its home state originally. Santander and Santander-Puerto Rico may retain their New York branches because these branches are grandfa- Orders Issued Under Section 4 of the Bank thered and may be retained under section 5(b) of the IBA, Holding Company Act 12 U.S.C. § 3103(b). Santander may also retain its agency and Edge corporation in Florida consistent with section 5 of the IBA. 7. Mass. Gen. Laws Ann. ch. 167A, § 2 (West 1991). Huntington Bancshares Inc. 8. The Royal Bank of Scotland Group pic, 75 Federal Reserve Bulletin 41 (1989); Citizens Financial Group, Inc., 74 Federal Reserve Columbus, Ohio Bulletin 496 (1988); and Fleet Financial Group, Inc., 70 Federal Reserve Bulletin 834 (1984). Order Approving Application to Acquire a Savings 9. The Metropolitan New York-New Jersey banking market includes New York City; Nassau, Orange, Putnam, Rockland, Suffolk, Association Sullivan, and Westchester Counties in New York; Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union, and Warren Counties in New Jersey; and Huntington Bancshares, Inc., Columbus, Ohio ("Hunparts of Fairfield County in Connecticut. Under the revised Departtington"), a bank holding company within the meaning ment of Justice Merger Guidelines, 49 Federal Register 26,823 (1984), this market is considered unconcentrated. of the Bank Holding Company Act (the "BHC Act"), Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
62 Federal Reserve Bulletin • January 1992 has applied under section 4(c)(8) of the BHC Act The TransOhio branches that Huntington proposes to (12 U.S.C. § 1843(c)(8)) and section 225.23 of the acquire control $152.9 million in deposits, representing Board's Regulation Y (12 C.F.R. 225.23), to acquire less than 1 percent of the total deposits in commercial Huntington Interim F.S.B., Columbus, Ohio ("Inter- banks and thrift institutions in Ohio.3 Upon consumim Savings"), a savings association. Interim Savings mation of this proposal, Huntington would remain the has been established solely for the purpose of: fourth largest commercial banking organization in (a) acquiring certain assets and assuming deposit Ohio, controlling approximately $7.0 billion in deposliabilities of five branches of TransOhio Savings its, representing 7.9 percent of the deposits in com- Bank, Cleveland, Ohio ("TransOhio"), a savings mercial banking organizations in Ohio. In the Board's association; and view, consummation of this proposal would not have a (b) merging immediately into Huntington's subsid- significantly adverse effect upon the concentration of iary bank, Huntington National Bank, Columbus, banking organizations in Ohio. Ohio ("Bank").1 Huntington and TransOhio compete directly in the Cincinnati banking market.4 In the Cincinnati banking The merger of the TransOhio branches into Hunting- market, Huntington is the eighth largest depository ton's subsidiary bank already has been approved by organization, controlling $401.8 million in deposits, Bank's primary federal supervisor, the Office of the representing 2.3 percent of the deposits held by banks Comptroller of the Currency ("OCC"), pursuant to and savings associations operating in the market the Bank Merger Act (12 U.S.C. § 1828(c)). ("market deposits").5 The TransOhio branches that Notice of the application under section 4 of the BHC Huntington proposes to acquire, control $152.9 million Act, affording interested persons an opportunity to in deposits in the Cincinnati banking market, represubmit comments, has been published (56 Federal senting less than 1 percent of market deposits. Upon Register 19,364 (1991)). The time for filing comments consummation of this proposal, Huntington's market has expired, and the Board has considered the appli- share would not increase significantly, the market cation and all comments received in light of the public would remain moderately concentrated, and numerous interest factors set forth in section 4(c)(8) of the BHC other depository institutions would continue to com- Act. pete in this market.6 Based on these and all of the other The Board has determined that the operation of a facts of record in this case, the Board concludes that savings association is closely related to banking and the acquisition would not have a significantly adverse permissible for bank holding companies. 12 C.F.R. effect on competition in the Cincinnati, or any other 225.25(b)(9). In order to approve the acquisition of relevant banking market. Interim Savings under section 4 of the BHC Act, the Board also is required to determine that the performance of the proposed activities by Huntington "can 3. TransOhio is a subsidiary of TransCapital Financial Corporation, reasonably be expected to produce benefits to the Cleveland, Ohio. TransOhio is the eighth largest depository institution in Ohio, controlling deposits of $3.1 billion, representing approxipublic . . . that outweigh possible adverse effects, such mately 7.4 percent of the total deposits in the state. as undue concentration of resources, decreased or 4. The Cincinnati banking market is approximated by Hamilton, unfair competition, conflicts of interests, or unsound Brown, Clermont, and portions of Butler and Warren Counties in southwestern Ohio; Boone, Campbell, Grant, Kenton and Pendleton banking practices." 12 U.S.C. § 1843(c)(8). Counties in northern Kentucky; and Dearborn County in southeastern Huntington, with total consolidated assets of $11.7 Indiana. 5. Market data are as of June 30, 1990. The pre-consummation billion, operates five banking subsidiaries in Ohio, market share statistics are based on calculations in which the deposits Indiana, Kentucky, and Michigan. Huntington is the that are held by the branches of TransOhio and all other thrifts are fourth largest commercial banking organization in included at 50 percent. Upon consummation of the proposal, the 6. Upon consummation of this proposal, Huntington would remain Ohio, controlling $6.8 billion in commercial bank the eighth largest depository institution in the Cincinnati banking deposits, representing approximately 7.7 percent of market, controlling approximately $553.7 million in deposits and the total deposits in commercial banks in the state.2 representing 3.1 percent of market deposits. The Herfindahl- Hirschman Index ("HHI") for the market would decrease by 3 points to 1007 upon consummation. Under the revised Department of Justice Merger Guidelines, 49 Federal Register 26,823 (1984), a market in which the post-merger HHI is between 1000 and 1800 is considered 1. Huntington has requested Board approval under section 5(d)(3) of moderately concentrated. The Justice Department has informed the the Federal Deposit Insurance Act ("FDI Act"), to merge Bank with Board that a bank merger or acquisition generally will not be chal- Interim Savings. Section 5(d)(3) of the FDI Act (the "Oakar Amend- lenged (in the absence of other factors indicating anticompetitive ment") was amended by the Financial Institutions Reform, Recovery, effects) unless the post-merger HHI market is at least 1800 and the and Enforcement Act of 1989 ("FIRREA") to permit the merger of a merger increases the HHI by at least 200 points. The Justice Departsavings association owned by a bank holding company into a subsid- ment has stated that the higher than normal HHI thresholds for iary bank owned by the same bank holding company. 12 U.S.C. screening bank mergers for anticompetitive effects implicitly recog- § 1815(d)(3). Pub. L. No. 101-73, § 206, 103 Stat. 183, 199 (1989). nize the competitive effect of limited-purpose lenders and other 2. State banking data are as of December 31, 1990. non-depository financial entities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 63 The Board has received comments on the proposal Bank's Community Advisory Council, which includes from one individual ("Protestant"). Protestant alleges representatives of Cleveland Tomorrow and Neighcertain deficiencies in Bank's performance under the borhood Progress, Inc., provides community liaison Community Reinvestment Act (12 U.S.C. § 2901 and input for Bank's ascertainment process. Bank also et seq.) ("CRA")7 and in Bank's management with has hired a loan officer with expertise in small business regard to Protestant's application to obtain financing lending, which has resulted in a 25 percent increase in for the construction of a county office building. SBA lending from 1989 to 1991 and has provided a substantial number of home improvement loans to CRA Comments low- and moderate-income areas in Cleveland.12 The July examination found no evidence of the discrimina- Protestant generally alleges that Bank engages in dis- tion or illegal credit practices generally alleged by the investment and discriminatory lending policies in the Protestant. In addition, the July examination conlow- and moderate-income neighborhoods located in cluded that Bank's overall record of opening and the east side of Cleveland. Specifically, Protestant closing offices did not show any disparate treatment of alleges that Bank did not meet the credit needs of this low- or moderate-income neighborhoods. The record area because of: shows that Bank also has in place appropriate formal (i) Bank's failure to finance fully Protestant's pro- written office closing procedures and regularly reviews posal to construct a county office building; its office network to ensure that all of its communities (ii) Bank's closure of branches in low- and moder- are being served.13 ate-income areas; and The evidence demonstrates that Bank is developing (iii) alleged deficiencies in Bank's mortgage lend- a first mortgage program with below market financing ing.8 targeted toward inner city areas, including the east side of Cleveland, and has established a non-commis- The Board has carefully reviewed the record before sioned loan originator position to help low- and modit, including the CRA performance record of Bank, as erate-income residents. The record also evidences that well as Protestant's comments and Bank's responses Bank has provided $536,000 for construction of twelve to those comments, in light of the CRA, the Board's single-family houses in the east side of Cleveland regulations, and the Statement of the Federal Finan- through a public/private partnership and that Bank cial Supervisory Agencies Regarding the Community participates in other housing efforts such as the Cleve- Reinvestment Act ("Agency CRA Statement").9 The land Housing Partnership, the Cleveland Action to Agency CRA Statement provides that CRA examina- Support Housing, and the Home Ownership Made tion reports will be given great weight in the applica- Easy Program. tions process.10 In this regard, Bank has received a The Board has carefully considered Protestant's satisfactory rating from the OCC, its primary regula- comments regarding Bank's CRA performance in light tor, in the most recent examination of Bank's CRA of all the facts of record. The Board also has noted performance.11 that, in approving Bank's merger application, the OCC The facts of record show that Bank engages in a considered Protestant's comments relating to the wide variety of community support activities directly Bank's CRA performance and found that the comfocused on ascertaining and meeting the credit needs ments did not warrant denial of the merger of the of low- and moderate-income areas of Cleveland. TransOhio branches with Bank.14 On the basis of all the facts of record, the Board believes that Bank's 7. The Board previously has determined that the CRA by its terms does not apply to applications by bank holding companies to acquire nonbanking companies under section 4(c)(8) of the BHC Act. The 12. Bank has also marketed a low-cost checking account and loan Mitsui Bank, Ltd., 76 Federal Reserve Bulletin 381 (1990). The Board products through newspapers, radio and direct mail as the result of also has stated that, unlike other companies that may be acquired by market research on the credit needs of low- and moderate-income bank holding companies under section 4(c)(8) of the BHC Act, savings areas in Cleveland. associations are depository institutions, as that term is defined in the 13. Huntington closed two branches on the east side of Cleveland CRA, and thus, acquisitions of savings associations are subject to but explains that it replaced these older branches with a modern review under the express terms of the CRA. Norwest Corporation, 76 branch offering more services and in a location more accessible to Federal Reserve Bulletin 873 (1990). minority neighborhoods on Cleveland's east side. 8. Protestant relies on data compiled by The Cuyahoga Plan, an 14. Subsequent to the OCC's approval, Protestant provided inforanalysis of race and mortgage lending in Cleveland published in 1989. mation on several instances in which selected branches of Bank 9. 54 Federal Register 13,742 (1989). refused to cash government checks for Protestant's non-customer 10. 54 Federal Register at 13,745. "testers." Bank has a written policy generally authorizing the cashing 11. The OCC conducted an examination of Bank's record of of such checks, and Bank has taken steps to reinforce this policy with performance under the CRA as of July 16, 1990 (the "July examina- teller and branch management personnel, including personnel at the tion"). locations identified by Protestant. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
64 Federal Reserve Bulletin • January 1992 performance under the CRA is consistent with ap- sented to the OCC during its review of this transaction proval. under the Bank Merger Act and, based on its review of the full record, including its examination reports of Other Factors Bank and the allegations made by Protestant, the OCC determined that the managerial and other factors that Protestant alleges that Bank breached a contract and the OCC must consider under the Bank Merger Act fiduciary duties with Protestant because of Bank's were consistent with approval of the transaction. failure to fund completely a letter of credit for the Thus, the substantive part of the transaction, which is construction of a county office building. Protestant Bank's acquisition of the TransOhio branches, has also alleges that Bank and certain nonbank affiliates of been approved, after a review of the entire record, by Bank violated the antitying provisions of the BHC Act the OCC. by requiring Protestant to purchase certain services The Board also finds that there are significant public and provide certain guarantees and waivers in order to benefits to this transaction. First, this transaction will obtain financing for the transaction.15 Prior to filing the provide TransOhio with the additional capital it needs protest, Protestant filed a civil action against the to help meet applicable regulatory capital require- Huntington Company, Huntington Mortgage Com- ments. Moreover, although Huntington can restrucpany and Bank on the basis of similar allegations and ture this transaction and make the acquisition without is seeking substantial monetary damages in that court the Board's approval, the Board's approval to acquire proceeding.16 The Huntington subsidiaries have de- the branches by the use of the interim thrift would nied these allegations. significantly reduce the costs to Huntington for this In considering whether to approve applications, transaction thereby conserving financial resources for such as this one, under section 4(c)(8) of the BHC Act, the organization. the Board is required to weigh the public benefits of Finally, the Board has sought the views of the the proposal against potential adverse effects. In this Department of Justice, the Ohio Superintendent of case, the Board has considered a number of factors to Banks, the Office of Thrift Supervision, and the FDIC determine whether Protestant's allegations warrant regarding Huntington's proposal and invited these denial of this application. First, it appears that the federal and state agencies to comment. None of these allegations raised by Protestant, even if true, represent government agencies offered any adverse comments an isolated incident and that Bank and the other or objections to this transaction. Huntington companies have a policy in place that In light of these considerations and based on all of instructs employees against illegal tying activities. The the facts of record in this case, the Board believes that Federal Reserve Bank of Cleveland recently com- the balance of public interest factors that the Board is pleted an examination of the holding company and did required to consider under section 4(c)(8) of the BHC not find evidence of illegal tying activities in that Act is consistent with approval of this transaction. In examination. reaching this determination, the Board specifically The Board also has considered that the OCC, which retains jurisdiction and full supervisory authority to is the appropriate federal banking supervisor for Bank, take appropriate action in the event that the court has examined Bank since the time of the alleged determines, or a subsequent examination finds that actions. The OCC found the management of Bank to Bank or any other subsidiary of Huntington has enbe satisfactory and did not find evidence of illegal tying gaged in illegal tying activities. In this regard, Huntransactions or related unsafe or unsound practices at tington is directed to promptly inform the Federal Bank. Protestant's specific allegations also were pre- Reserve Bank of Cleveland of each material development in the litigation with Protestant. The Reserve Bank will closely monitor the court's action in this 15. 12 U.S.C. § 1972. Protestant alleges that, in connection with a case, and the Board and the Reserve Bank will take loan transaction, he was required appropriate action based on the findings made by the (1) to enter into a contract with a Huntington subsidiary, The court.17 Based on all the facts of record, including the Huntington Company, appointing The Huntington Company as the exclusive financial advisor to Protestant and exclusive agent for conditions imposed in this order, the Board has deter- Protestant in arranging financing for the transaction; (2) to use a title company with a deposit relationship with Bank; (3) to enter into a partnership with a third party as part of the transaction and to obtain a guarantee from Protestant's wife for certain loans; (4) to provide certain collateral for loans; and (5) to provide a waiver of liability. 17. Under the antitying statute, any bank or holding company 16. Protestant also has alleged inaccuracies in senior loan commit- affiliate found to have been engaged in unlawful tying would be subject tee minutes, discrepancies in loan documentation, and backdating of to appropriate supervisory actions, including monetary penalties and loan request forms in connection with his transaction. The OCC removal proceedings. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 65 mined that the proposed application to acquire Interim The transactions approved in this order shall be Savings should be, and hereby is approved.18 completed not later than three months after the effec- The Board also has considered the request by Hun- tive date of this Order, unless such period is extended tington for approval of the merger of Interim Savings for good cause by the Board or by the Federal Reserve into Bank pursuant to section 5(d)(3) of the FDI Act.19 Bank of Cleveland, pursuant to delegated authority. Based on all of the facts of record, the Board has By order of the Board of Governors, effective determined that the application under section 5(d)(3) November 19, 1991. of the FDI Act should be, and hereby is, approved. The Board's approval is specifically conditioned Voting for this action: Chairman Greenspan and Governors upon Huntington's compliance with the conditions Mullins, Angell, Kelley, and La Ware. imposed in this order, which shall constitute conditions imposed in writing by the Board in connection JENNIFER J. JOHNSON Associate Secretary of the Board with its findings and decision. The determination under section 4(c)(8) of the BHC Act is also subject to all Michigan National Corporation of the conditions set forth in the Board's Regulation Y, Farmington Hills, Michigan including sections 225.4(d) and 225.23, and to the Board's authority to require such modifications or termination of the activities of a bank holding com- Order Approving Application to Engage in Asset pany or any of its subsidiaries as the Board finds Management, Servicing, and Collection Activities necessary to assure compliance with, or to prevent evasion of, the provisions and purposes of the BHC Michigan National Corporation, Farmington Hills, Act or the Board's regulations and orders issued Michigan ("MNC"), a bank holding company within thereunder. the meaning of the Bank Holding Company Act ("BHC Act"), has applied under section 4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8)) and section 225.23(a)(3) of the Board's Regulation Y (12 C.F.R. 18. Protestant has requested that the Board hold a public hearing to 225.23(a)(3)), to engage de novo in asset management, adjudicate the issues raised in this protest. In considering this request, the Board has considered TransOhio's need to raise capital through servicing, and collection activities through its wholly this transaction and other public benefits resulting from this proposal, owned subsidiary Independence One Asset Managethe isolated nature of the allegations, the antitying policies in place at Huntington, the OCC's approval of the substance of the transaction, ment Corporation, Farmington Hills, Michigan Protestant's opportunity for court review of the tying allegations and ("IOAMC"). MNC also seeks to acquire through the Board's ability to use its statutory remedies to take enforcement IOAMC a general partnership interest representing a action against Huntington or its management, the relevant examination reports, as well as the other matters discussed in this order. The 75 percent interest in Independence One/Graimark, Board also has considered that Protestant has been provided an Farmington Hills, Michigan ("Partnership"), a de opportunity to submit written comments, and has in fact submitted novo joint venture. The remaining general partnership substantial written comments, in particular, regarding the CRA allegations. Based on these and all of the other facts of record, the Board interest in Partnership, representing 25 percent of believes that even if Protestant's factual allegations regarding tying Partnership's equity, will be acquired by Graimark are assumed to be true, these allegations are not material in light of the Realty Advisors, Inc., Detroit, Michigan ("Graimother undisputed facts of this case and that a formal hearing would serve no useful purpose or be required in this case. ark").1 Partnership would also engage in asset man- 19. The proposed merger of Interim Savings into Bank meets the agement, servicing, and collection activities. requirements of section 5(d)(3) of the FDI Act. The record shows that: (1) The aggregate amount of the total assets of all depository Notice of the application, affording interested perinstitution subsidiaries of Huntington is $11.5 billion, an amount sons an opportunity to submit comments, has been which is not less than 200 percent of the total assets of Interim Savings, which will have $152.9 million in total assets; published (56 Federal Register 41,848 (1991)). The (2) Huntington and all of its bank subsidiaries currently meet all time for filing comments has expired, and the Board applicable capital standards and, upon consummation of the prohas considered the application and all comments reposed transactions, will continue to meet all applicable capital standards; ceived in light of the factors set forth in section 4(c)(8) (3) The transaction is not in substance the acquisition of a Bank of the BHC Act. Insurance Fund member bank by a Savings Association Insurance MNC, with total consolidated assets of $9.3 billion, Fund member; (4) TransOhio, the predecessor of Interim Savings, had tangible is the 62nd largest banking organization in the nation. capital of less than 5 percent during the quarter preceding its MNC operates three subsidiary banks and engages acquisition by Huntington; and (5) The transaction, which involves the merger of Interim Savings, a savings association located in Ohio, into a bank that is a subsidiary of Huntington, a bank holding company whose banking subsidiaries' operations are principally conducted in Ohio, would comply 1. Graimark is a real estate investment advisor not affiliated with with the requirements of section 3(d) of the Bank Holding Company MNC. Graimark does not engage in real estate investment, develop- Act if Interim Savings were a state bank which Huntington were ment, or brokerage activities that would be impermissible for bank applying to acquire. holding companies under the BHC Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
66 Federal Reserve Bulletin • January 1992 directly and through subsidiaries in a variety of per- services. In addition, MNC has committed that missible nonbanking activities.2 IOAMC and Partnership will not establish policies or IOAMC and Partnership would provide asset man- procedures of general applicability for the institutions agement services to the Resolution Trust Corporation whose assets they manage, and that the services of ("RTC") and the Federal Deposit Insurance Corpora- IOAMC and Partnership for unaffiliated financial instition ("FDIC").3 MNC proposes that the subsidiaries tutions would be limited to asset management, servicwould also provide these services to unaffiliated third ing, and collection activities.8 party investors that purchase pools of assets that have The Board is also required to determine whether the been assembled by the RTC or the FDIC from trou- performance of the proposed activity by MNC is a bled financial institutions, and generally to unaffiliated proper incident to banking—that is, whether the profinancial institutions with troubled assets.4 Under the posed activity "can reasonably be expected to proproposal, neither IOAMC nor Partnership would ac- duce benefits, such as greater convenience, increased quire an ownership interest in the assets that they competition, or gains in efficiency, that outweigh posmanage or in the institutions for which they provide sible adverse effects, such as undue concentration of asset management services. In addition, IOAMC and resources, decreased or unfair competition, conflicts Partnership would not engage in providing real prop- of interests, or unsound banking practices." erty management or real estate brokerage services as 12 U.S.C. § 1843(c)(8). part of their proposed activities.5 Consummation of the proposal can reasonably be The Board has previously determined that, within expected to result in public benefits. MNC's proposal certain parameters, providing asset management ser- would facilitate the disposal of assets of financial vices for assets originated by financial institutions and institutions in receivership as well as financial institutheir bank holding company affiliates is an activity that tions with troubled financial assets. Moreover, the is closely related to banking for purposes of the BHC efficient disposition of such assets can reasonably be Act.6 MNC has proposed to conduct these activities expected to produce benefits to the public. IOAMC under the same terms, and subject to the same condi- and Partnership will own no equity in the institutions tions as in previous Board Orders regarding this activ- for which they provide asset management services or ity.7 For example, MNC has committed that it will not in the assets that they manage. MNC's de novo entry own the stock of, or be represented on the board of into the market will increase competition for these directors of, any unaffiliated institution for which services. IOAMC or Partnership provides asset management MNC has indicated that it may, in certain instances, seek approval to acquire institutions whose assets are being managed by IOAMC and Partnership. In previous cases, the Board expressed concern that a bank 2. Data are as of June 30, 1991. 3. Asset management encompasses the liquidation (or other dispo- holding company might obtain confidential informasition) of loans and their underlying collateral, including real estate tion in the course of providing its asset management and other assets acquired through foreclosure or in satisfaction of services that would provide the bank holding company debts previously contracted ("DPC property"). Specific individual activities include: classifying and valuing loan portfolios; filing re- with a competitive advantage over other institutions in views of loan documentation; developing collection strategies; nego- the bidding process for the failed institution under tiating renewals, extensions, and restructuring agreements; initiating foreclosure, bankruptcy, and other legal proceedings, where appro- management.9 The Board also noted that such inforpriate; and developing and implementing market strategies for the sale mation could give the managing bank holding company or refinancing of individual loans and for the packaging and sale of a competitive advantage over the ultimate acquiror of whole or securitized loan portfolios. In addition, MNC would conduct and review (either directly or through independent contractors) ap- the failed institution in markets where they both compraisals and environmental inspections; provide asset valuations; pete. perform cash flow and asset review analyses; contract with and supervise independent property managers; and lease (either directly To address these concerns, MNC has committed or through independent contractors) real estate and other DPC prop- that it will establish and implement procedures to erty. MNC also would dispose of DPC property by developing and preserve the confidentiality of information obtained in implementing marketing strategies for the sale of DPC property, either individually or packaged for investors or developers. 4. MNC must obtain the prior approval of the Board before providing asset management services in connection with pools of assets that were not originated or held by financial institutions and their affiliates. 5. MNC will contract with independent third parties to obtain these 8. MNC also will provide its services for a limited period of time. services for assets under the management of IOAMC and Partnership. The Board notes that, while MNC will manage assets on an ongoing 6. See First Interstate Bancorp, 11 Federal Reserve Bulletin 334 basis, the owner of the assets will retain the right to make all final (1991); Banc One Corporation, 11 Federal Reserve Bulletin 331 (1991); decisions regarding asset dispositions and to terminate MNC as an NCNB Corporation, 11 Federal Reserve Bulletin 124 (1991); First asset manager. Florida Banks, Inc., 74 Federal Reserve Bulletin 111 (1988). 9. See, e.g., NCNB Corporation, 11 Federal Reserve Bulletin 124 7. Id. (1991). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 67 the course of providing asset management services.10 its subsidiaries, or of Graimark or its subsidiaries, These procedures will prevent the use of information will serve as an officer or employee of Partnership. obtained by IOAMC and Partnership through their (8) No officer, director, or employee of MNC or any asset management activities in the course of preparing of its subsidiaries will deal with or have access to any bid that MNC may prepare to acquire the institu- confidential information about the financial condition managed by IOAMC and Partnership, and will tion of Graimark or any of its subsidiaries, and no prevent MNC from competing unfairly against the officer, director, or employee of Graimark or any of winning bidder in the relevant market. its subsidiaries will deal with or have access to The Board, in prior decisions, has expressed concern confidential information about the financial condithat joint ventures could potentially lead to a matrix of tion of MNC or any of its subsidiaries. relationships between co-venturers that could break down the legally mandated separation of banking and The commitments are designed to ensure a separation commerce, create the possibility of conflicts of interests between the joint venture and Graimark's activities. and other adverse effects that the BHC Act was de- Under the circumstances of this case, the Board finds signed to prevent, or impair or give the appearance of these commitments sufficient to address its concerns impairing the ability of the banking organization to about potential adverse effects associated with the joint function effectively as an independent and impartial venture. provider of credit.11 Further, joint ventures must be There is no evidence in the record to indicate that analyzed carefully for any possible adverse effects on consummation of this proposal is otherwise likely to competition and on the financial condition of the bank- result in any significantly adverse effects, such as ing organization involved in the proposal. undue concentration of resources, decreased or unfair In this regard, MNC has made the following com- competition, conflicts of interests, or unsound banking mitments that the Board has relied upon in other cases practices. The financial and managerial resources of to mitigate any possible adverse effects arising from MNC and its subsidiaries are also consistent with the joint venture: approval. Accordingly, on the basis of all of the facts (1) Partnership will not expand its activities without of record and commitments made by MNC, the Board MNC's knowledge and consent as well as prior concludes that the public benefits that would result authorization from the Federal Reserve, and will from approval of this application outweigh the potendivest its interest in Partnership should the Board so tial adverse effects, and that the public interest factors require. it must consider under section 4(c)(8) of the BHC Act (2) MNC will not solicit business on behalf of are consistent with approval. Graimark. Based upon the foregoing and all of the other facts of (3) MNC, IOAMC, and Graimark do not currently record, including commitments made by MNC and have or expect to have any significant relationships conditions in this Order, the Board has determined that other than Partnership. the application should be, and hereby is, approved. The (4) MNC and its subsidiaries will act at all times on Board's determination is also subject to all of the an arm's length basis in deciding whether to extend conditions set forth in the Board's Regulation Y, incredit to Graimark and Graimark's competitors. cluding those in sections 225.4(d) and 225.23(b), and to (5) Partnership will observe the anti-tying provisions the Board's authority to require modification or termiof the BHC Amendments of 1970 and Partnership nation of the activities of a bank holding company or will be treated as an affiliate for the purposes of any of its subsidiaries as the Board finds necessary to section 23A of the Federal Reserve Act. assure compliance with, and to prevent evasion of, the (6) The operations of Partnership will be kept at provisions of the BHC Act and the Board's Regulations arm's length from those of MNC and its subsidiaries and Orders issued thereunder. The commitments made and from Graimark and its subsidiaries. in connection with this application and the conditions (7) Although MNC and Graimark may name one or referred to in this Order and the above-noted Orders are more of their officers or directors to Partnership's conditions imposed in writing by the Board in connecboard of directors, no officer or director of MNC or tion with its findings and decision. This transaction shall not be consummated later than three months after the effective date of this Order, unless such period is extended for good cause 10. MNC's procedures will be subject to review by the Federal by the Board or by the Federal Reserve Bank of Reserve System. 11. See Wells Fargo & Company, 76 Federal Reserve Bulletin 465 Chicago, acting pursuant to delegated authority. (1990); The Fuji Bank, Limited, 75 Federal Reserve Bulletin 577 By order of the Board of Governors, effective (1989); Amsterdam-Rotterdam, N. V., 70 Federal Reserve Bulletin 835 (1984). November 21, 1991. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
68 Federal Reserve Bulletin • January 1992 Voting for this action: Chairman Greenspan and Governors Deposit Insurance Corporation. The time for filing Angell, Kelley, and LaWare. Absent and not voting: Gover- comments has expired, and the Board has considered nor Mullins. the applications and all comments received in light of the public interest factors set forth in section 4(c)(8) of JENNIFER J. JOHNSON the BHC Act and in the Bank Merger Act. Associate Secretary of the Board The Board has previously determined that the operation of a savings association is closely related to Provident Bancorp, Inc. banking and permissible for bank holding companies. Cincinnati, Ohio 12 C.F.R. 225.25(b)(9). In making this determination, the Board required that savings associations acquired Order Approving the Acquisition of a Savings by bank holding companies conform their direct and Association indirect activities to those permissible for bank holding companies under section 4 of the BHC Act. Provident Provident Bancorp, Inc., Cincinnati, Ohio ("Provi- has committed to conform all activities of Hunter to dent"), a bank holding company within the meaning of the requirements of section 4 and Regulation Y.2 In the Bank Holding Company Act ("BHC Act"), has order to approve the application, the Board also is applied pursuant to section 4(c)(8) of the BHC Act required by section 4(c)(8) of the BHC Act to deter- (12 U.S.C. § 1843(c)(8)) to acquire Hunter Savings mine that the ownership and operation of Hunter by Association, Cincinnati, Ohio ("Hunter"), a savings Provident "can reasonably be expected to produce association, pursuant to section 225.25(b)(9) of the benefits to the public . . . that outweigh possible ad- Board's Regulation Y (12 C.F.R. 225.25(b)(9)). Provi- verse effects, such as undue concentration of redent's subsidiary bank, Provident Bank, Cincinnati, sources, decreased or unfair competition, conflicts of Ohio ("Bank"), has also applied, pursuant to section interests, or unsound banking practices." 12 U.S.C. 18(c) of the Federal Deposit Insurance Act § 1843(c)(8). (12 U.S.C. § 1828(c)) (the "Bank Merger Act") to Provident, which operates one subsidiary bank in merge with Hunter. Bank has also applied, pursuant to Ohio and one subsidiary bank in Kentucky, is the 13th section 9 of the Federal Reserve Act (12 U.S.C. § 321 largest depository institution in Ohio, controlling deet seq.) ("FRA"), to establish branches at the loca- posits of $1.7 billion, representing 1.4 percent of the tions of Hunter's offices listed in the Appendix. total deposits in the state.3 Hunter is the 23rd largest In connection with these transactions, Provident also depository institution in Ohio, controlling deposits of has requested the Board's approval under section $928.9 million, representing less than one percent of 5(d)(3) of the Federal Deposit Insurance Act ("FDI the total deposits in the state. After consummation of Act"), as amended by the Financial Institutions the proposed acquisition, Provident will be the 11th Reform, Recovery, and Enforcement Act of 1989 largest depository institution in Ohio, controlling de- (Pub. L. No. 101-73, § 206, 101 Stat. 183, 199 (1989)) posits of $2.7 billion, representing 2.1 percent of the ("FIRREA"), to merge Hunter into Bank.1 total deposits in the state. Consummation of the pro- Notice of the applications, affording interested per- posed acquisition would not have a significantly adsons an opportunity to submit comments, has been verse effect on the concentration of resources in published (56 Federal Register 21,493 (1991)). As depository institutions in Ohio. required by the Bank Merger Act, reports on the Provident and Hunter compete directly in the Cincompetitive effects of the mergers were requested cinnati banking market.4 Provident is the fourth largest from the United States Attorney General, the Office of depository institution in the market, controlling deposthe Comptroller of the Currency, and the Federal its of $1.6 billion, representing 9.4 percent of the deposits in banks and thrift institutions in the market 1. American Financial Corporation, Cincinnati, Ohio ("AFC"), the present owner of Hunter, will acquire 4.9 percent of the voting shares of Provident as well as shares of a new class of nonvoting preferred 2. Hunter currently engages in impermissible real estate activities shares in Provident, for a total investment of up to 24.9 percent of through existing subsidiaries. Provident has committed to divest itself Provident's equity. The nonvoting shares are convertible into voting of these impermissible real estate investment and development activshares only in the hands of a third party and may be sold only in a ities within two years of consummation of the proposal. No new widespread distribution. AFC will not have any interlocking directors impermissible projects or investments will be undertaken during this or management officials with Provident. In addition, AFC has gener- period. ally made all of the passivity commitments that the Board has 3. State banking data are as of June 30, 1990. Market banking data accepted in previous cases to ensure that an equity investment will be are as of June 30, 1989. passive and non-controlling. Based on the foregoing and other facts of 4. The Cincinnati banking market is approximated by Hamilton, record, the Board has not determined that AFC will control Provident Brown, and Clermont Counties, and portions of Butler and Warren for purposes of the BHC Act as a result of the investment as Counties in Ohio; Dearborn County in Indiana; and Boone, Kenton, structured. Campbell, Grant and Pendleton Counties in Kentucky. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 69 ("market deposits").5 Hunter is the ninth largest de- (1) The aggregate amount of the total assets of all pository institution in the market, controlling deposits depository institution subsidiaries of Provident is of $304.4 million, representing 1.8 percent of market $2.4 billion, an amount which is not less than 200 deposits. Upon consummation of the proposal, Prov- percent of the total assets of Hunter, which curident would become the third largest depository insti- rently has $997.7 million in total assets; tution in the market, controlling deposits of $2.2 (2) Provident and all of its bank subsidiaries curbillion, representing 12.7 percent of market deposits, rently meet all applicable capital standards and, and the Herfindahl-Hirschman Index ("HHI") would upon consummation of the proposed transactions, increase by 42 points to a level of 962.6 Based on all the will continue to meet all applicable standards; facts of record, the Board concludes that consumma- (3) The transaction is not in substance the acquisition of this proposal would not result in a significantly tion of a Bank Insurance Fund member bank by a adverse effect on competition in the Cincinnati bank- Savings Association Insurance Fund member; ing market. (4) The transaction, which involves the merger of The financial and managerial resources of Provi- Hunter, a savings association located in Ohio, with dent, Bank and Hunter are consistent with approval of a bank subsidiary of Provident, a bank holding these applications. Upon consummation of this pro- company whose banking subsidiaries' operations posal, Provident, Bank and Hunter would meet all are principally conducted in Ohio, would comply applicable capital requirements. There is no evidence with the requirements of section 3(d) of the BHC in the record that consummation of this proposal is Act if Hunter were a state bank which Provident likely to result in any significant adverse effects, such was applying to acquire. as undue concentration of resources, decreased or Based on the foregoing and all of the other facts of unfair competition, conflicts of interests, or unsound record, the Board has determined that the proposed banking practices. Accordingly, the Board has deter- application under section 5(d)(3) of the FDI Act should mined that the balance of the public interest factors be, and hereby is, approved. that it is required to consider under section 4(c)(8) of Based on the foregoing and all of the other facts of the BHC Act is favorable and consistent with ap- record, the Board has determined that the applicaproval. tions should be, and hereby are, approved. The The Board finds that the factors that it is required to Board's determination is subject to all of the comconsider under the Bank Merger Act are consistent mitments made by Provident and AFC as well as all with approval of Bank's application to merge with of the conditions set forth in the Board's Regulation Hunter. The Board also concludes that the financial Y, including those in sections 225.4(d) and condition of Bank, the general character of its man- 225.23(b)(3), and to the Board's authority to require agement, and the proposed exercise of corporate pow- modification or termination of the activities of a bank ers are consistent with approval and the purposes of holding company or any of its subsidiaries as the section 9 of the FRA. Board finds necessary to assure compliance with, or In considering Provident's request for approval of to prevent evasion of, the provisions and purposes of the merger of Hunter into Bank pursuant to section the BHC Act and the Board's regulations and orders 5(d)(3) of the FDI Act, the record in this case shows issued thereunder. The commitments and conditions that: referred to above are conditions imposed in writing by the Board in connection with its findings and decision. The merger of Hunter into Bank shall not be consummated before the thirtieth calendar day 5. The pre-consummation market share statistics are based on following the effective date of this Order, and all the calculations in which the deposits of Hunter are included at 50 transactions shall not be consummated later than percent. Upon consummation, Hunter will be affiliated with a commercial banking organization; thus, on a pro forma basis, the deposits three months after the effective date of this Order, of Hunter are included at 100 percent, while the deposits of other unless such period is extended for good cause by the savings associations continue to be included at 50 percent unless Board or by the Federal Reserve Bank of Cleveland, otherwise indicated. 6. Under the revised Department of Justice Merger Guidelines, 49 pursuant to delegated authority. Federal Register 26,823 (1984), a market in which the post-merger By order of the Board of Governors, effective HHI is less than 1000 is considered unconcentrated. The Department of Justice has informed the Board that, as a general matter, a bank November 13, 1991. merger or acquisition will not be challenged, in the absence of other Voting for this action: Chairman Greenspan and Governors factors indicating anticompetitive effects, unless the post-merger HHI is at least 1800 and the merger increases the HHI by 200 points. The Mullins, Angell, Kelley, and La Ware. Justice Department has stated that the higher-than-normal HHI thresholds for screening bank mergers for anticompetitive effects implicitly recognize the competitive effect of limited-purpose lenders JENNIFER J. JOHNSON and other non-depository financial entities. Associate Secretary of the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
70 Federal Reserve Bulletin • January 1992 Appendix Notice of the application under section 4(c)(8), affording interested persons an opportunity to submit Provident will establish the following branches: comments, has been published (56 Federal Register 43,769 (1991)). The time for filing comments has ex- (1) 1270 Upper Valley Pike, Springfield, Ohio; pired, and the Board has considered this application (2) 936 State Route #28, Milford, Ohio; and all comments received in light of the public (3) 1318 North Fairfield Road, Dayton, Ohio; interest factors set forth in section 4(c)(8) of the BHC (4) 917 Hempstead Drive, Cincinnati, Ohio; Act (12 U.S.C. § 1843(c)(8)). (5) 370 Loveland-Madeira Road, Loveland, Ohio; The Board has previously determined that the oper- (6) 5569 Kirby Road, Cincinnati, Ohio; ation of a savings and loan association by a bank (7) 8087 Montgomery Road, Cincinnati, Ohio; holding company is closely related to banking for (8) 11951 Hamilton Avenue, Cincinnati, Ohio; purposes of section 4(c)(8).2 In order to approve the (9) 7050 Blue Ash Road, Cincinnati, Ohio; acquisition of FFB, the Board is also required by (10) 495 East Kemper Road, Cincinnati, Ohio; section 4(c)(8) of the BHC Act to determine that the (11) 6141 Glenway Avenue, Cincinnati, Ohio; operation of FFB by Union Planters "can reasonably (12) 536 West National Road, Vandalia, Ohio; be expected to produce benefits to the public . . . that (13) 6010 Far Hills Avenue, Dayton, Ohio; outweigh possible adverse effects, such as undue (14) 6740 Brandt Pike, Dayton, Ohio; concentration of resources, decreased or unfair com- (15) 1212 East Stroop Road, Dayton, Ohio; petition, conflicts of interests, or unsound banking (16) 3081 Far Hills Avenue, Dayton, Ohio; practices." 12 U.S.C. § 1843(c)(8). (17) 4795 Salem Avenue, Dayton, Ohio; Union Planters, with total consolidated assets of (18) 1814 Woodman Drive, Dayton, Ohio; approximately $3.8 billion, controls 21 commercial (19) 8220 Springboro Pike, Miamisburg, Ohio; and banking subsidiaries in Tennessee, Arkansas, Missis- (20) 2221 West Michigan Street, Sidney, Ohio. sippi, and Alabama.3 Union Planters is the fifth largest commercial banking organization in Tennessee, with Union Planters Corporation deposits of approximately $2.5 billion, representing Memphis, Tennessee approximately 6.6 percent of total deposits in commercial banks in the state.4 FFB, which operates only in Order Approving Acquisition of a Savings Tennessee, is the fourth largest thrift institution in the Association state, controlling approximately $765 million in deposits, representing approximately 8.0 percent of the total Union Planters Corporation, Memphis, Tennessee deposits in thrift institutions in the state. Upon consum- ("Union Planters"), a bank holding company within mation of this proposal, Union Planters would remain the meaning of the Bank Holding Company Act ("BHC the fifth largest commercial banking organization in Act"), has applied for the Board's approval under Tennessee, controlling approximately 8.5 percent of section 4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8)) total deposits in commercial banking organizations in and section 225.23 of the Board's Regulation Y the state. In the Board's view, consummation of this (12 C.F.R. 225.23), to acquire indirectly Fidelity Fed- proposal would not have a significantly adverse effect eral Bank, a Federal Savings Bank, Nashville, Ten- upon the concentration of banking organizations in nessee ("FFB"), a savings association. Union Plant- Tennessee. ers also has requested Board approval pursuant to Union Planters and FFB compete directly in the section 5(d)(3) of the Federal Deposit Insurance Act following banking markets in Tennessee: Jackson, Gib- ("FDI Act"), as amended by the Financial Institutions son County, Knoxville, and Nashville.5 Consummation Reform, Recovery, and Enforcement Act of 1989 (Pub. L. No. 101-73, § 206, 101 Stat. 183, 199(1989)), to merge FFB into its subsidiary bank, Union Planters during this series of steps will FFB operate as a separate subsidiary of Bank. The Board has previously authorized a bank holding company National Bank, Memphis, Tennessee ("Bank"), imto acquire indirectly, through its subsidiary bank, a savings associamediately following the acquisition of the shares of tion for purposes of effectuating a simultaneous Oakar transaction. FFB ("Oakar transaction").1 See U.S. Bancorp, 76 Federal Reserve Bulletin 792, 793 (1990); Marshall & Ilsley Corporation, 76 Federal Reserve Bulletin 556 (1990). 2. 12 C.F.R. 225.25(b)(9). Union Planters has committed that any 1. Union Planters proposes to acquire FFB indirectly through Bank, nonbanking activities conducted by FFB that are not permissible which will acquire FFB's parent company, Fidelity Bancshares, Inc., under section 4(c)(8) of the BHC Act will be divested prior to Nashville, Tennessee, a unitary savings and loan holding company consummation of its acquisition of FFB. ("Bancshares"). Bank will acquire Bancshares by merging Bank's 3. Asset data are as of June 30, 1991. subsidiary merger corporation, UPNB Interim, with and into Banc- 4. Deposit data are as of June 30, 1990. shares. Bancshares will then be dissolved, and FFB will convert to a 5. The Board has previously indicated that thrift institutions have national bank and then immediately be merged into Bank. At no time become, or have the potential to become, significant competitors of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 71 of this proposal would result in the loss of a competitor section 5(d)(3) of the FDI Act, the record in this case from each market, and would result in an increase in the shows that: Herfindahl-Hirschman Index ("HHI") in the Jackson (1) the aggregate amount of the total assets of all and Gibson County banking markets.6 The record indi- depository institution subsidiaries of Union Planters cates, however, that numerous other competitors is $4.8 billion, an amount which is not less than 200 would remain in each of these markets and consumma- percent of the total assets of FFB, which currently tion of this proposal otherwise would not have a signif- has approximately $966.3 million in total assets; icantly adverse effect on competition in any of these (2) Union Planters and all of its bank subsidiaries markets.7 Based on these and other facts of record, the currently meet all applicable capital standards and, Board concludes that consummation of this proposal upon consummation of the proposed transactions, would not have a significantly adverse effect on com- will continue to meet all applicable capital stanpetition in any relevant banking market. dards; The financial and managerial resources and future (3) the transaction is not in substance the acquisition prospects of Union Planters and its bank subsidiaries of a Bank Insurance Fund member bank by a are consistent with approval. Considerations relating Savings Association Insurance Fund member; and to the convenience and needs of the communities to be (4) the transaction, which involves the merger of served are also consistent with approval of this appli- FFB, a savings association located in Tennessee, cation. Consummation of this proposal is not likely to into a bank subsidiary of Union Planters, a bank result in any significant adverse effects, such as undue holding company whose banking subsidiaries' opconcentration of resources, decreased or unfair com- erations are principally conducted in Tennessee, petition, conflicts of interest, or unsound banking would comply with the requirements of section practices. Accordingly, based upon the facts of record 3(d) of the BHC Act if FFB were a state bank and the commitments made by Union Planters, the which Union Planters was applying to acquire. Board has determined that the acquisition of FFB by Union Planters can reasonably be expected to produce In light of the above considerations and other facts of public benefits which would outweigh adverse effects record, the Board has determined that Union Planters's under the proper incident to banking standard of proposed acquisition of FFB pursuant to section 4(c)(8) of section 4(c)(8) of the BHC Act. the BHC Act should be, and hereby is, approved. The In considering the request by Union Planters for Board also has determined that, based on all the facts of approval of the merger of FFB into Bank pursuant to record, Union Planters's proposal to merge FFB into Bank pursuant to section 5(d)(3) of the FDI Act should be, and hereby is, approved. The Board's approval of these commercial banks. WM Bancorp, 76 Federal Reserve Bulletin 788 transactions is specifically conditioned upon Union Plant- (1990). The Board has included thrift deposits in the calculation of ers's compliance with the commitments that it has made market share on a 50 percent basis. See, e.g., First Hawaiian, Inc., 77 Federal Reserve Bulletin 52 (1991). Upon consummation of the in the application and other submissions as well as all of proposal, FFB would be merged with a commercial banking organi- the conditions set forth in the Board's Regulation Y, zation, thus on a pro forma basis, the deposits of FFB are included at 100 percent, while the deposits of other savings associations in all including those in sections 225.4(d) and 225.23(b)(3) relevant banking markets continue to be included at 50 percent. (12 C.F.R. 225.4(d) and 225.23(b)(3)), and to the Board's 6. Under the revised Department of Justice Merger Guidelines, 49 authority to require such modifications or termination of Federal Register 26,823 (June 29, 1984), a market in which the post-merger HHI is above 1800 is considered to be highly concen- the activities of a bank holding company or any of its trated. In such markets, the Justice Department is likely to challenge subsidiaries as the Board finds necessary to assure coma merger that increases the HHI by more than 50 points. The Justice Department has informed the Board that a bank merger or acquisition pliance with, or to prevent evasion of, the provisions and 7. Upon consummation of this proposal, Union Planters would purposes of the BHC Act and the Board's regulations and become the largest depository institution in the Jackson market, orders issued thereunder. The commitments and condicontrolling deposits of approximately $238.7 million, representing approximately 25.2 percent of total market deposits. The HHI would tions referred to above are conditions imposed in writing increase by 185 points to 1842, and ten other competitors would by the Board in connection with its finding and decision. remain in the market. In the Gibson County banking market, Union This approval also is subject to Union Planters obtaining Planters would remain the largest depository institution in the market, controlling approximately $177.4 million in deposits, representing the approval of the appropriate Federal banking agencies approximately 34.5 percent of total market deposits. The HHI would for the proposed merger under the Bank Merger Act. The increase by 161 points to 1676, and 11 other competitors would remain in the market. In the Knoxville banking market, Union Planters would transactions approved in this Order shall be consummated remain the fifth largest of 25 depository institutions in the market, not later than three months after the effective date of this controlling approximately $91.5 million in deposits, representing ap- Order, unless such period is extended for good cause by proximately 6.4 percent of market deposits. The HHI would decrease by 14 points to 1728. In the Nashville banking market, Union Planters the Board or by the Federal Reserve Bank of St. Louis, would become the fourth largest of 35 depository institutions in the pursuant to delegated authority. market, controlling approximately $561.5 million in deposits, representing approximately 7.0 percent of market deposits. The HHI would By order of the Board of Governors, effective decrease by 53 points to 1612. November 21, 1991. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
72 Federal Reserve Bulletin • January 1992 Voting for this action: Chairman Greenspan, and Gover- 25(a) of the Federal Reserve Act (12 U.S.C. § 611 nors Angell, Kelley, and LaWare. Absent and not voting: et seq.) ("Edge Act"). Governor Mullins. Notice of the applications, affording interested persons an opportunity to submit comments, has been JENNIFER J. JOHNSON published (56 Federal Register 21,678 (1991)). The Associate Secretary of the Board time for filing comments has expired, and the Board has considered the applications and all comments Orders Issued Under Sections 3 and 4 of the received in light of the factors set forth in sections 3(c) Bank Holding Company Act and 4 of the BHC Act and the purpose of the Edge Act. Santander, with consolidated assets equivalent to Banco de Santander, S.A. de Credito approximately $55 billion, is the third largest banking Santander, Spain organization in Spain.3 Santander engages in a broad range of banking and financial services throughout the Order Approving Applications to Acquire a Bank world through an extensive network of offices and Holding Company and its Banking and Nonbanking subsidiaries. In the United States, Santander main- Subsidiaries tains a branch in New York, New York, and an agency and an Edge corporation in Miami, Florida. Santander Banco de Santander, S.A. de Credito, Santander, also owns shares of Banco de Santander-Puerto Rico Spain ("Santander"), a bank holding company within ("Santander-Puerto Rico") and Santander Federal the meaning of the Bank Holding Company Act Savings Bank, both in Puerto Rico. Santander-Puerto ("BHC Act"), has applied under section 3 of the BHC Rico operates one branch in New York.4 Santander Act (12 U.S.C. § 1842) to acquire up to 24.9 percent of also owns 10 percent of the voting shares of The Royal the voting shares of First Fidelity Bancorporation, Bank of Scotland Group pic, Edinburgh, Scotland Lawrenceville, New Jersey ("First Fidelity"),1 and ("The Royal Bank"), a registered bank holding comthereby indirectly to acquire the following banks: First pany with banking subsidiaries in Rhode Island and Fidelity Bank, N.A., New Jersey, Newark, New Jer- Massachusetts.5 First Fidelity, with consolidated assey ; First Fidelity Bank, N.A., North Jersey, Totowa, sets of $28.7 billion, is the largest commercial banking New Jersey; First Fidelity Bank, N.A., South Jersey, organization in New Jersey, and owns six banking Burlington, New Jersey; Fidelity Bank, N.A., Philasubsidiaries in New Jersey and Pennsylvania.6 delphia, Pennsylvania; Merchants Bank, N.A., Allentown, Pennsylvania; and Merchants Bank North, IBA and Douglas Amendment Analysis Wilkes-Barre, Pennsylvania. Santander also has applied under section 4(c)(8) of Under section 5(a) of the International Banking Act the BHC Act (12 U.S.C. § 1843(c)(8)) to acquire the ("IBA"), Santander may not acquire a bank outside of nonbanking subsidiaries of First Fidelity.2 In addition, its home state if the acquisition would be prohibited by Santander has provided notice of its intent to acquire the Douglas Amendment, section 3(d) of the BHC Act, First Fidelity Tradexport Corporation, Newark, New for a bank holding company located in the foreign Jersey, pursuant to section 4(c)(14) of the BHC Act, bank's home state. The Douglas Amendment prohibits and to acquire indirectly the shares of Fidelity Interthe Board from approving an application by a bank national Bank, New York, New York, and Fidelity holding company to acquire any voting shares of or Overseas Investment, Inc., Philadelphia, Pennsylvainterest in any bank located outside of the bank nia, both corporations chartered pursuant to section holding company's home state, unless such acquisition is "specifically authorized by the statute laws of the State in which such bank is located, by language to 1. Santander proposes to acquire 9,505,000 shares of newly-issued that effect and not merely by implication." common stock and warrants to purchase an additional 9,505,000 shares of common stock of First Fidelity. After the proposed acquisition, Santander will own approximately 13.7 percent of the common stock then outstanding and 13.3 percent of First Fidelity's voting rights, and, assuming complete exercise of the warrants, approximately 24.1 percent of the common stock and 23.5 percent of First 3. Banking data are as of March 31, 1991. Country ranking is as of Fidelity's voting rights. Santander also has proposed to have certain December 31, 1990. representatives serve on the board of directors of First Fidelity and to 4. Santander and Santander-Puerto Rico may each retain its New provide certain management assistance to First Fidelity. Accordingly, York branch because these branches were opened before July 27, Santander has applied for Board approval under section 3 of the BHC 1978, and may be retained under section 5(b) of the IBA, Act to exercise control, as defined in that Act, over First Fidelity. (12 U.S.C. § 3103(b)). 2. A list of these nonbanking subsidiaries is set forth in the 5. See Banco de Santander, S.A. de Credito, 78 Federal Reserve Appendix. Each of these activities has been previously approved by Bulletin 60 (1992). the Board. 6. Banking data are as of December 31, 1990. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 73 Santander had originally selected Florida as its interstate banking statute continues to be reciprocal home state but has notified the Board of its intention to with Pennsylvania.13 Based on this and a review of the change its home state to Rhode Island, pursuant to the relevant statutes, the Board has determined that the provisions of Regulation K permitting a one-time proposed acquisition is specifically authorized by the change of home state.7 First Fidelity's subsidiary statute laws of Pennsylvania. banking organizations are located in New Jersey and Based on the foregoing, the Board has determined Pennsylvania. that, subject to Santander's obtaining approval from The statute laws of New Jersey expressly authorize the appropriate state authorities, Board approval of the acquisition of a bank located in New Jersey by an the proposal is not barred by the Douglas Amendment out-of-state domestic bank holding company, if that or the IBA. state authorizes the acquisition of a bank on a reciprocal basis by a New Jersey bank holding company.8 Factors under Section 3 of the BHC Act Rhode Island law also expressly authorizes the acquisition of a Rhode Island bank by an out-of-state bank Santander and First Fidelity compete in the Metropolholding company on a reciprocal basis.9 The New itan New York-New Jersey banking market,14 where Jersey Department of Banking has determined that the Santander and its subsidiary, Banco de Santander- Rhode Island interstate banking statute is reciprocal Puerto Rico, each has a branch. Santander is the 56th with New Jersey.10 Based on this and a review of the largest commercial banking organization in the Metrorelevant statutes, the Board has determined that the politan New York-New Jersey market, controlling proposed acquisition is specifically authorized by the deposits of $326.9 million, representing less than statute laws of New Jersey. 1 percent of the total deposits in commercial banking The statute laws of Pennsylvania also expressly au- organizations in the market. First Fidelity is the tenth thorize the acquisition of a banking institution or bank largest commercial banking organization in the marholding company located in Pennsylvania by a bank ket, controlling deposits of $10.5 billion, representing holding company located in another state, if that other approximately 3.5 percent of the total deposits in state authorizes the acquisition of a financial institution commercial banking organizations in the market.15 on a reciprocal basis by a Pennsylvania bank holding Upon consummation of the proposed transaction, company.11 The Pennsylvania statute specifies that the Santander would control 3.6 percent of the total deposreciprocal interstate banking statutes of several states, its in commercial banking organizations in the market including Rhode Island, shall be deemed to be recipro- and the market would remain unconcentrated. On the cal.12 The Rhode Island interstate statute has been basis of the facts of record, the Board concludes that revised since that time, and the Pennsylvania Depart- consummation of this proposal would not have a signifment of Banking has determined that the Rhode Island icantly adverse effect on competition in the Metropolitan New York-New Jersey banking market. Section 3(c) of the BHC Act requires in every case that the Board consider the financial resources of the 7. Section 211.22(c) of Regulation K provides that a foreign bank may change its home state once if prior notice is filed with the Board applicant organization. On the basis of the facts of and if domestic branches established and investments in banks ac- record, the Board concludes that financial considerquired in reliance on its original home state selection conform to those that would have been permissible had the new home state been ations are consistent with approval of these applicaselected as its home state originally. In connection with the Board's tions. approval of Santander's proposal to retain its interest in the voting The managerial resources and future prospects of shares of The Royal Bank, Santander elected to change the location of its home state for purposes of the IBA from Florida to Rhode Island. Santander are consistent with approval. The Board See Banco de Santander, S.A. de Credito, 78 Federal Reserve Bulletin also has determined that considerations relating to the 60 (1992). A change in home state would not affect Santander's current convenience and needs of the communities to be Florida and New York operations. Santander's New York branches are grandfathered under section 5(b) of the IBA, and retention of its served are consistent with approval. Florida agency and Edge corporation also is consistent with section 5(b) of the IBA. 8. This proposal involves the acquisition of several banks. First Fidelity's capital stock savings bank has been merged into and with 13. See letter dated July 29, 1991, from Lisa Detwiler, Chief First Fidelity's lead banking subsidiary, First Fidelity Bank, N.A., Counsel. New Jersey. 14. The Metropolitan New York-New Jersey banking market in- 9. R.I. Gen. Laws § 19-30-2 (1989). cludes New York City; Nassau, Orange, Putnam, Rockland, Suffolk, 10. See Letter dated October 7, 1991, from Robert M. Jaworski, Sullivan, and Westchester Counties in New York; Bergen, Essex, Assistant Commissioner. Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, 11. Pa. Stat. Ann. tit. 7, § 116 (Purdon 1991). Somerset, Sussex, Union, and Warren Counties in New Jersey; and 12. Pennsylvania law provided that the laws of Rhode Island as of parts of Fairfield County in Connecticut. Under the revised Depart- 1986 were reciprocal. Subsequent amendments to this statute have ment of Justice Merger Guidelines, 49 Federal Register 26,823 (1984), expanded entry into Rhode Island. Pa. Stat. Ann. tit. 7, § 116(c)(iv) this market is considered unconcentrated. (Purdon 1991). 15. Deposit data are as of June 30, 1989. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
74 Federal Reserve Bulletin • January 1992 Nonbanking Activities to the Board's authority to require such modification or termination of the activities of a holding company or Santander also has applied, pursuant to section 4(c)(8) any of its subsidiaries as the Board finds necessary to of the BHC Act, to acquire certain nonbanking subsid- assure compliance with, or to prevent evasion of, the iaries of First Fidelity. The Board has determined by provisions and purposes of the BHC Act and the regulation or order that each of the activities in which Board's regulations and orders issued thereunder. the subsidiaries engage is permissible for bank holding By order of the Board of Governors, effective companies under section 4(c)(8) of the BHC Act, and November 25, 1991. Santander proposes to conduct these activities in accordance with the Board's regulations and orders. Voting for this action: Vice Chairman Mullins and Gover- In considering Santander's acquisition of the non- nors Angell, Kelley, and La Ware. Absent and not voting: Chairman Greenspan. banking activities of First Fidelity, the Board notes that these subsidiaries compete in geographic markets that are regional or national in scope. These markets JENNIFER J. JOHNSON Associate Secretary of the Board are served by numerous competitors, and Santander does not have a significant market share in any of these Appendix markets. Accordingly, the Board concludes that consummation of this proposal would not have any signif- Nonbanking subsidiaries to be acquired: icantly adverse effect on competition in any relevant (1) First Fidelity Community Development Corporamarket. Furthermore, consummation of this proposal tion, Trenton, New Jersey; is not likely to result in any significantly adverse (2) Waller House Corporation, Philadelphia, Pennsyleffects, such as undue concentration of resources, vania; decreased or unfair competition, conflicts of interests, (3) First Fidelity Capital Corporation, Newark, New or unsound banking practices. Accordingly, the Board Jersey; has determined that the balance of public interest (4) Broad & Lombardy Associates, Inc., Newark, factors it must consider under section 4(c)(8) of the New Jersey; BHC Act is favorable and consistent with approval of (5) First Fidelity Trust, N.A., Florida, Boca Raton, Santander's proposal to acquire the nonbanking sub- Florida; sidiaries of First Fidelity. (6) First Fidelity Brokers, Inc., Newark, New Jersey; The Board also has considered Santander's proposal to (7) First Fidelity Trust Company, New York, New acquire First Fidelity Tradexport Corporation pursuant to York, New York; section 4(c)(14) of the BHC Act, and to acquire Fidelity (8) Fidelcor Business Credit Corporation, New York, International Bank and Fidelity Overseas Investment, New York; Inc., under the Edge Act. Considerations relating to these (9) Fidelcor Business Credit Corporation of California, subsidiaries are consistent with approval. Inc., Los Angeles, California; Based on the foregoing and other facts of record, (10) Fidelcor Life Insurance Company, Phoenix, Ariand in reliance on the commitments made by zona; Santander, the Board has determined that consumma- (11) Fidelcor Trading Inc., Philadelphia, Pennsylvation of the proposed transaction would be consistent nia; and with the public interest. Accordingly, the Board con- (12) FCC-PR, Inc., Santurce, Puerto Rico. cludes that the applications under sections 3 and 4 of the BHC Act and under the Edge Act should be, and hereby are, approved, subject to the commitments Chemical Banking Corporation made by Santander. The bank acquisitions shall not be New York, New York consummated before the thirtieth calendar day following the effective date of this Order, and the proposed Chemical Bank bank and nonbank acquisitions shall not be consum- New York, New York mated later than three months after the effective date of this Order, unless such period is extended for good Order Approving the Merger of Bank Holding cause by the Board or by the Federal Reserve Bank of Companies and the Merger of State Member Banks New York, acting pursuant to delegated authority. The determinations as to the nonbanking activities are Chemical Banking Corporation, New York, New York subject to all of the conditions in the Board's Regula- ("Chemical"), a bank holding company within the tion Y, including those in sections 225.4(d) and meaning of the Bank Holding Company Act ("BHC 225.23(b)(3) (12 C.F.R. 225.4(d) and 225.23(b)(3)), and Act"), has applied for the Board's approval under Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 75 section 3 of the BHC Act (12 U.S.C. § 1842) to merge section 211.3(a)(3) of the Board's Regulation K with Manufacturers Hanover Corporation, New York, (12 C.F.R. 211.3(a)(3)) of its intent to establish New York ("MHC"), a registered bank holding com- branches in certain countries in which neither Chempany, and thereby to acquire Manufacturers Hanover ical nor any of its affiliates have branches.2 Trust Company, New York, New York ("MHTC"), Notice of the applications, affording interested perand MHC Holdings (Delaware) Inc., Wilmington, Del- sons an opportunity to submit comments, has been aware, and its wholly owned subsidiary Manufacturers published (56 Federal Register 48,560 (1991)). The Hanover Bank (Delaware), Wilmington, Delaware. Board extended the public comment period in this case Chemical has also applied for the Board's approval for an additional 30 days, providing interested persons under section 4(c)(8) of the BHC Act to acquire the over 75 days to submit comments regarding this case. shares of certain nonbanking companies owned by (Press Release dated October 18, 1991.) As required MHC and listed in the Appendix. Each of these com- by the Bank Merger Act, reports on the competitive panies engages in nonbanking activities that have been effects of the merger were requested from the United authorized by the Board by order or by regulation. States Attorney General, the Office of the Comptroller In connection with this transaction, Chemical Bank, of the Currency ("OCC"), and the Federal Deposit New York, New York, a state member bank, has applied Insurance Corporation ("FDIC"). The time for filing under the Bank Merger Act (12 U.S.C. § 1828(c)) to comments has expired, and the Board has considered merge with MHTC. Chemical Bank will be the surviving the applications and all comments received in light of entity. In addition, Chemical Bank has applied under the factors set forth in sections 3(c) and 4 of the BHC section 9 of the Federal Reserve Act (12 U.S.C. § 321) to Act, the Bank Merger Act, the Edge Act and the establish branches at the offices of MHTC listed in the Federal Reserve Act. Appendix and for permission to make an additional in- Chemical, with consolidated assets of $74.1 bilvestment in bank premises pursuant to section 24A of the lion, operates subsidiary banks in New York, New Federal Reserve Act (12 U.S.C. § 371(d)). Jersey, Delaware and Texas, and holds approxi- Chemical also proposes to acquire and make an mately $44.4 billion in total deposits in the United additional investment in, pursuant to section 211.5(c) States.3 MHC, with consolidated assets of $61.3 of the Board's Regulation K, Manufacturers Hanover billion, operates subsidiary banks in New York and Leasing International Corporation, New York, New Delaware, and holds approximately $24.4 billion in York, a subsidiary of MHC that is engaged in leasing total deposits in the United States. Upon consummatransactions outside the United States pursuant to tion of the proposed transaction, Chemical would section 4(c)(13) of the BHC Act. In addition, Chemical become the second largest banking organization in proposes to acquire, pursuant to section 211.5(f) of the the United States, with consolidated assets of ap- Board's Regulation K, 29 percent of the voting shares proximately $135.4 billion. of Massuh S.A., Buenos Aires, Argentina, a paper company acquired through a debt-equity conversion. Interstate Banking Provisions Chemical Bank has also given notice of its intent to acquire Manufacturers Hanover International Finance Section 3(d) of the BHC Act, the Douglas Amend- Corporation, New York, New York, and Manufactur- ment, prohibits the Board from approving an applicaers Hanover International Banking Corporation, Mi- tion by a bank holding company to acquire any bank ami, Florida, corporations chartered pursuant to sec- located outside of the bank holding company's home tion 25(a) of the Federal Reserve Act (the "Edge state, unless such acquisition is "specifically autho- Act") (12 U.S.C. §§ 611-613). In addition, Chemical rized by the statute laws of the State in which [the] Bank has given notice, pursuant to the Edge Act, bank is located, by language to that effect and not section 25 of the Federal Reserve Act and section 211.5(c) of the Board's Regulation K, to hold the bank resulting from the merger of Chemical Bank of Canada, Toronto, Ontario, a direct foreign bank subsidiary International Finance Corporation the remaining 40.8 percent of the of Chemical Bank, with Manufacturers Hanover Bank shares of the resulting bank. of Canada, Toronto, Ontario, an indirect subsidiary of 2. MHTC has branches in the following countries in which neither Chemical nor any of its affiliates have branches: Argentina, Chile, Manufacturers Hanover International Finance Corpo- Egypt, France, Italy, Romania and Taiwan. MHTC also has branches ration.1 Chemical Bank has also provided notice under in the Bahamas, Bahrain, the Channel Islands (Guernsey), Germany, Hong Kong, Korea, Japan, Philippines, Singapore, Spain and the United Kingdom, which Chemical Bank will acquire, as well as a subsidiary bank in Turkey, Manufacturers Hanover Bank A.S., Istanbul, Turkey. Manufacturers Hanover Bank (Delaware) has a branch in 1. Chemical Bank would own directly 59.2 percent of the shares of the Cayman Islands. the resulting bank and indirectly through Manufacturers Hanover 3. Asset data and domestic deposit data are as of June 30, 1991. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
76 Federal Reserve Bulletin • January 1992 merely by implication."4 As part of this proposal, York-New Jersey banking market,11 Chemical is the Chemical, which has New York as its home state,5 third largest depository institution, controlling $29.2 proposes to acquire the Delaware bank subsidiary of billion in deposits, representing approximately 8.0 MHC, Manufacturers Hanover Bank (Delaware). Del- percent of the total market deposits.12 MHC is the aware law permits acquisitions of banks located in fourth largest depository institution in the market, Delaware by out-of-state bank holding companies pro- controlling $24.4 billion in deposits, representing apvided that the home state of the bank holding company proximately 6.7 percent of the total market deposits. permits the acquisition of banks in that state by Upon consummation of the proposed acquisition, Delaware bank holding companies on a reciprocal Chemical would become the largest depository instibasis.6 As part of its review of these applications, the tution in the market, controlling approximately 14.7 Board has determined that the New York and Dela- percent of the total market deposits. The Metropolitan ware interstate banking laws are reciprocal and that New York-New Jersey banking market would remain Delaware law would allow Chemical's acquisition of unconcentrated upon consummation of this proposal; MHC's Delaware bank subsidiary.7 Accordingly, the Herfindahl-Hirschman Index ("HHI") for the Board approval of this proposal is not barred by the market would increase by 106 points to a level of 537.13 Douglas Amendment.8 Approximately 188 commercial banking organizations and 192 thrift institutions would continue to operate in Competitive Effects the market after consummation of this proposal.14 Based on these and all of the other facts of record in The New York bank subsidiary of Chemical is the third largest commercial banking organization in New York State, with total assets of $42.8 billion, repre- trust activities. There is no significant competitive overlap between Chemical's Delaware banks and MHC's Delaware bank, and the senting approximately 10.0 percent of the total assets market shares of each are small. Additionally, there are numerous in commercial banks in the state.9 The New York bank competitors active in these lines of business. Accordingly, consummation of the proposed acquisition of Manufacturers Hanover Bank subsidiary of MHC is the fourth largest commercial (Delaware) will not have a significantly adverse effect on competition banking organization in New York State, with total in any relevant market. assets of $37.4 billion, representing approximately 8.8 11. The Metropolitan New York-New Jersey banking market is approximated by Bronx, Kings, Nassau, New York, Orange, Putnam, percent of the total assets in commercial banks in the Queens, Richmond, Rockland, Suffolk, Sullivan, and Westchester state. Upon consummation of the proposed acquisi- Counties in New York State; Bergen, Essex, Hudson, Hunterdon, tion, Chemical would become the largest commercial Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union, and Warren Counties in New Jersey; Darien, Greenwich, New banking organization in New York State, accounting Canaan, Norwalk, Redding, and Ridgefield municipalities and Stamfor approximately 18.8 percent of the total assets in ford, Weston, Westport, and Wilton townships in Fairfield County, commercial banks in the state. Connecticut. 12. Market deposit data are calculated on the basis of deposit data Chemical and MHC compete directly in the Metro- for commercial banks operating in the market as well as deposit data politan New York-New Jersey banking market and the for thrift institutions in the market weighted at 50 percent. The Board previously has indicated that thrift institutions have become, or have Albany, Buffalo, Rochester and Syracuse banking the potential to become, major competitors of commercial banks. See markets in New York.10 In the Metropolitan New Midwest Financial Group, 75 Federal Reserve Bulletin 386 (1989); National City Corporation, 70 Federal Reserve Bulletin 743 (1984). 13. Under the revised Department of Justice Merger Guidelines, 49 Federal Register 26,823 (1984), a market in which the post-merger 4. 12 U.S.C. § 1842(d). HHI is less than 1000 is considered to be unconcentrated, a market in 5. A bank holding company's home state is that state in which the which the post-merger HHI is between 1000 and 1800 is considered to operations of the bank holding company's banking subsidiaries were be moderately concentrated, and a market in which the post-merger principally conducted on July 1, 1966, or the date on which the HHI is above 1800 is considered to be highly concentrated. The company became a bank holding company, whichever is later. Department of Justice has informed the Board that, as a general 6. Del. Code Ann. tit. 5, § 843 (Supp. 1990). matter, a bank merger or acquisition will not be challenged, in the 7. See N.Y. Banking Laws § 142-b (McKinney 1987); Del. Code absence of other factors indicating anticompetitive effects, unless the Ann. tit. 5, §§ 842-843 (Supp. 1990). post-merger HHI is at least 1800 and the merger increases the HHI by 8. Board approval of the acquisition of MHTC and Manufacturers 200 points. The Justice Department has stated that the higher-than- Hanover Bank (Delaware) is subject to Chemical obtaining the nec- normal HHI thresholds for screening bank mergers for anticompetiessary state approvals. 14. On the basis of commercial banking organizations alone, with- 9. State asset data are as of June 30, 1991. Market deposit data are out considering thrift competitors, Chemical is the third largest as of June 30, 1990. commercial banking organization in the market, controlling approxi- 10. Both Chemical and MHC own limited service commercial banks mately 9.4 percent of the total deposits in commercial banking in Delaware. MHC owns Manufacturers Hanover Bank (Delaware), organizations in the market. MHC is the 4th largest commercial which provides wholesale lending, cash management and other oper- banking organization in the market, controlling approximately 7.9 ating services, and limited trust services. Chemical controls Texas percent of the total deposits in commercial banking organizations in Commerce Banks (Delaware), Newark, Delaware, a limited purpose the market. Upon consummation of the proposed acquisition, Chemconsumer credit card bank established pursuant to Delaware's Con- ical would become the largest commercial banking organization in the sumer Credit Bank Act (Del. Code Ann. tit. 5, § 1001 et seq. (1985)), market, controlling approximately 17.2 percent of the total deposits in and Chemical Bank Delaware, Wilmington, Delaware, which primar- commercial banking organizations in the market. The HHI for the ily provides consumer credit card services and also engages in limited market would increase by 147 points to 736. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 77 this case, the Board has determined that consumma- in the analysis of bank holding company expansion tion of the proposal is not likely to result in a signifi- proposals, particularly in transactions, such as this, cantly adverse effect on competition in the Metropol- where a major acquisition is proposed.17 itan New York-New Jersey banking market. In this regard, the Board expects banking organiza- In each of the remaining relevant banking markets, tions contemplating expansion proposals to maintain consummation of the transaction would result in only strong capital levels substantially above the minimum a small increase in concentration levels in the market. levels specified in the Board's Capital Adequacy All of these markets, except the Buffalo market, would Guidelines.18 The Board carefully analyzes the effect remain either unconcentrated or moderately concen- of expansion proposals on the preservation or achievetrated following this merger. The Buffalo market is ment of strong capital levels and has adopted a policy considered highly concentrated, with an HHI level of that there should be no significant diminution of finan- 2069. However, this merger would increase the level cial strength below these levels for the purpose of of concentration in that market, as measured by the effecting major expansion proposals.19 market HHI, by only 2 points to 2071, and, following The proposed transaction represents a substantial consummation, Chemical would become the seventh acquisition for Chemical that would nearly double its largest depository institution in the market.15 In all of size in terms of total assets. Chemical proposes to these markets, including the Buffalo banking market, acquire all of the outstanding common shares of MHC numerous depository institution competitors would stock through an exchange of stock, and will not incur remain in the market and Chemical would not rank any additional debt in connection with this acquisiamong the five largest depository institutions in the tion.20 market following consummation of the proposal.16 The capital levels of Chemical and MHC are above The Board has requested competitive factor reports the minimum levels specified in the Board's Capital from the United States Attorney General, the OCC, Adequacy Guidelines. Financial projections submitted and the FDIC. The United States Attorney General by Chemical indicate that the capital ratios for the has reviewed the proposal and concluded that consum- resulting organization would remain above the remation of the transaction would not have a signifi- quired minimum level. These projections also indicate, cantly adverse effect on competition in any relevant however, that the transaction would result in a lessenmarket. Neither the FDIC nor the OCC has provided ing of the capital strength of the two organizations on any objection to consummation of this proposal or a combined basis as a result of a one-time restructuring indicated that the proposal would have any signifi- charge. To address these effects and to strengthen the cantly adverse competitive effects. Based on these and capital of the combined organizations, Chemical has all of the other facts of record in this case, the Board submitted a capital plan that includes a commitment to has concluded that consummation of the proposals raise an additional $1.25 billion in common equity would not result in a significantly adverse effect on promptly following consummation of the holding comcompetition in any relevant banking market. pany merger and to contribute at least $950 million of that capital to the subsidiary banks. This plan also Financial and Managerial Factors includes measures to strengthen further the capital position of the organization. On the basis of the capital In evaluating these applications, the Board has carefully considered the financial resources and future 17. The Bank of New York Company, Inc., 74 Federal Reserve prospects of the companies and banks involved and Bulletin 257 (1988); Chemical New York Corporation, 73 Federal the effect on those resources of the proposed acquisi- Reserve Bulletin 378 (1987); Citicorp, 72 Federal Reserve Bulletin 497 tion. The Board has stated and continues to believe (1986); National City Corporation, 70 Federal Reserve Bulletin 743 (1984); Banks of Mid-America, Inc., 70 Federal Reserve Bulletin 460 that capital adequacy is an especially important factor (1984); Manufacturers Hanover Corporation (CIT), 70 Federal Reserve Bulletin 452 (1984). 18. Capital Adequacy Guidelines, 12 C.F.R. 225, Appendices A and B (1991). 15. On the basis of commercial banking organizations alone, with- 19. Thus, for example, the Board has generally approved proposals out considering thrift competitors, Chemical would be the 6th largest involving a decline in capital only where the applicants have promptly commercial banking organization in the market, and the HHI would restored their capital to pre-acquisition levels following consummaincrease by 2 points to 2496. tion of the proposals and have implemented programs of capital 16. Upon consummation of the proposal, Chemical would become improvement to raise capital significantly above minimum levels. See, the ninth largest depository institution in the Albany banking market, e.g., Citicorp, 72 Federal Reserve Bulletin 726 (1986); Security Pacific and the HHI would increase by 3 points, to a level of 790. In the Corporation, 72 Federal Reserve Bulletin 800 (1986). See also Security Rochester banking market, Chemical would become the 10th largest Banks of Montana, 71 Federal Reserve Bulletin 246 (1985). depository institution, and the HHI would increase by 3 points, to a 20. Each share of MHC common stock will be exchanged for 1.14 level of 1039. In the Syracuse banking market, Chemical would shares of Chemical's common stock. Each share of MHC preferred become the seventh largest depository institution, and the HHI would stock will be exchanged for a share of an equivalent series of increase by 6 points, to a level of 1153. Chemical's preferred stock. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
78 Federal Reserve Bulletin • January 1992 raising commitments made by Chemical, the capital munity, including low- and moderate-income neighlevels of the combined organization would be above borhoods, consistent with the safe and sound operathe pre-acquisition levels of the companies within a tion of the institution," and to take that record into short period of time following consummation of the account in evaluating certain proposals involving the holding company merger. institution. 12 U.S.C. § 2903. Chemical believes that it can achieve significant cost In this case, the Board has provided an extended savings and operational efficiencies as a result of the period for public comment in order to assemble a transaction and contends that the restructuring charge complete record regarding the effect of the proposal on taken by the two organizations prior to consummation the convenience and needs of the communities afof the merger will position the organization at consum- fected by the proposal, including the CRA performation to realize cost savings over a period of time. mance records of the bank subsidiaries of Chemical Cost savings are expected to result from a number of and MHC. The Board has received a number of factors, including consolidation of branches and office comments regarding the convenience and needs facfacilities, elimination of certain duplicative operational tors, including comments from the Association of and administrative functions, and significant related Community Organizations for Reform Now staff reductions. Chemical has committed to report ("ACORN"); the Black Chamber of Commerce of the quarterly to the Board regarding its progress in achiev- Permian Basin in Odessa, Texas; New Jersey Citizen ing these savings, integrating and restructuring the Action; the David Hodge Bedford Stuyvesant Neighmanagement of the two companies, and meeting pro- borhood House; the Freedmen's Town Association in jected capital and other financial targets, and to report Houston, Texas; the Southern Dallas Development promptly on actions that the organization will take to Corporation, and several individuals as well as comaddress any difficulties that may arise in meeting these ments from United States and New York State congoals. gressional representatives (collectively, "Comment- Based on these considerations, including the com- ers"). Several Commenters allege generally that the mitments made by Chemical and all of the facts of bank subsidiaries of Chemical and MHC: record in this case, the Board concludes that the (i) do not participate sufficiently in CRA-related financial resources and future prospects of Chemical, programs, including ascertainment efforts, in mak- MHC, and their subsidiaries are consistent with ap- ing sufficient mortgage loans in low- and moderateproval of these applications. Chemical's commitments income communities, and in offering sufficient custo raise $1.25 billion in capital promptly and to pursue tomer services targeted to individuals in low- and a course that will strengthen further its capital position moderate-income communities;21 and are critical elements in the Board's decision to ap- (ii) do not meet the consumer or small-business prove this proposal. Accordingly, the Board condi- lending needs of the community. tions its approval of this transaction on compliance by Chemical with its capital proposals. The Board also Certain Commenters also question the policies governfinds that managerial considerations are consistent ing branch locations and closings following the merger with approval. of Chemical Bank and MHTC. Three Commenters, ACORN, New Jersey Citizen Action and Southern Convenience and Needs Factors Dallas Development Corporation, submitted comments supporting the merger and generally praising In considering the applications under section 3 of the certain aspects of the CRA programs of Chemical.22 BHC Act, the Bank Merger Act, and the Federal The Board has carefully reviewed the CRA perfor- Reserve Act, the Board must consider the conve- mance records of Chemical and MHC, as well as all nience and needs of the communities to be served by comments received and Chemical's and MHC's rethe institutions, and take into account the records of sponses to those comments, and all of the other the relevant depository institutions under the Community Reinvestment Act (12 U.S.C. § 2901 et seq.) ("CRA"). The CRA requires the federal financial 21. One Commenter asserts generally that the merger should not be permitted because the subsidiary banks of Texas Commerce reinvest supervisory agencies to encourage financial institudeposits collected in Texas into New York and cause decisions tions to help meet the credit needs of the local com- regarding these banks' lending to be made at distant offices rather than munities in which they operate consistent with the safe at the local level. Another Commenter asserts that one of the subsidiary banks of Chemical's subsidiary bank holding company, and sound operation of such institutions. To accom- Texas Commerce Bancshares, Inc., Houston, Texas ("Texas Complish this end, the CRA requires the appropriate fed- 22. These groups had initially submitted comments expressing eral supervisory authority to "assess an institution's concerns regarding the CRA performance record of Chemical and MHC, but subsequently provided comments in support of the merger record of meeting the credit needs of its entire comproposal. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 79 relevant facts, in light of the CRA, the Board's regu- of senior-level officials. These officials include a senior lations, and the Statement of the Federal Financial vice-president and members of the board of directors Supervisory Agencies Regarding the Community Re- of the bank. In addition, the senior officer in charge of investment Act ("Agency CRA Statement").23 coordinating CRA performance at Chemical Bank Chemical Bank and MHTC, the lead banks of makes a presentation on CRA to a committee of the Chemical and MHC, respectively, each have received board of directors at least annually. That committee of an outstanding rating in the most recent examinations the board of directors makes a formal presentation on of their CRA performance.24 All other subsidiary CRA to the full board of directors of Chemical Bank at banks of Chemical and MHC have received either a least annually. The board of directors also reviews and satisfactory or an outstanding rating from their pri- approves separate CRA Statements for Chemical mary regulators during the most recent examinations Bank's downstate and upstate community delineaof their CRA performance, with two exceptions.25 The tions. Board has also recently reviewed certain components Chemical Bank has full-time "Streetbanker" emof the CRA record of Chemical and MHC in two ployees assigned to ascertain the credit needs of the recent applications.26 community and provide advice and information about bank products and services. Other ascertainment ef- Participation in CRA-Related Programs forts are conducted through Chemical Bank's Community Policy Lending Unit, which provides interim Chemical, MHC and their subsidiary banks have financing to social service organizations awaiting readopted the elements of an effective CRA program as ceipt of government funds, and Community Business outlined in the Agency CRA Statement. For example, Group, which serves businesses with sales of $1 mil- Chemical Bank has a CRA Coordinating Committee, lion or less. MHTC also has developed call programs, which includes representatives from all of Chemical including a program through its branch offices for Bank's consumer-related departments. The CRA Co- calling on small businesses with annual sales of $3 ordinating Committee collects and analyzes data from million and under. Chemical Bank's various ascertainment efforts and Texas Commerce uses Community Advisory Counreports on these efforts to two committees comprised cils in the major markets in which it operates to obtain information regarding the credit needs of various constituencies.27 Individuals active in the community such as politicians, business people, community leaders, 23. 54 Federal Register 13,742 (1989). The Agency CRA Statement provides guidance regarding the types of policies and procedures that and educators, serve on the councils. The composition the supervisory agencies believe financial institutions should have in of each council is intended to represent the ethnic place in order to fulfill their responsibilities under the CRA on an diversity of the community. Texas Commerce has also ongoing basis and the procedures that the supervisory agencies will use during the application process to review an institution's CRA established a board of directors committee and a compliance and performance. The Agency CRA Statement also indi- Community Action Committee to provide ongoing cates that decisions by agencies to allow financial institutions to advice and to monitor the bank holding company's expand will be made pursuant to an analysis of the institution's overall CRA performance and will be based on the actual record of perfor- programs for community reinvestment. In addition, mance of the institution. each subsidiary bank of Texas Commerce has formed 24. The most recent CRA examination report for Chemical Bank is a board committee and a Community Action Comdated July 22, 1991; the most recent CRA examination report for MHTC is dated September 24, 1990. These examinations were con- mittee to oversee the bank's efforts in community ducted by the Federal Reserve Bank of New York. reinvestment.28 The boards of directors of the sub- 25. One subsidiary bank of Texas Commerce accounting for less than 2 percent of the total assets of Texas Commerce has received a sidiary banks review the banks' CRA Statements less than satisfactory rating at the most recent examination of its CRA annually to assure that they accurately reflect the performance. The Board notes that Texas Commerce has taken steps banks' products and services. Officers of Texas Comto improve the CRA performance of the bank, and the Board expects that Texas Commerce will continue to improve the CRA performance merce's subsidiary banks call on small businesses of this bank. Another subsidiary bank of Texas Commerce, which is and participate in group presentations in low- and chartered in Delaware as a special purpose consumer credit card moderate-income areas. bank, also did not receive a satisfactory rating at the most recent examination of its CRA performance because of concerns that the bank's community delineation should include Delaware communities in which the bank is located rather than Texas communities, which are the areas from which the majority of the bank's deposits are derived. Since the examination, the bank has redefined its primary service area to include New Castle County, Delaware, to address the concerns of 27. Texas Commerce has established Community Advisory Coun- 26. Manufacturers Hanover Trust Company, 77 Federal Reserve cils in Austin, Corpus Christi, Dallas, El Paso, Houston, and San Bulletin 493 (1991) ("Goldome Order"); Chemical Banking Corpora- Antonio, all in Texas. tion, Texas Commerce Banc shares, Inc., Texas Commerce Equity 28. Chemical Bank New Jersey, East Brunswick, New Jersey, has Holdings, Inc., 77 Federal Reserve Bulletin 48 (1991) ("Texas Com- formed a similar Community Advisory Board composed of individuals merce Order"). active in the community to advise the bank on CRA matters. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
80 Federal Reserve Bulletin • January 1992 Chemical Bank and MHTC market their CRA- ment corporations, which lend primarily to businesses related products through a wide variety of media. For located in New York City, but also throughout the example, Chemical Bank advertises its credit products tri-state area. MHTC has outstanding over $40 million through local newspapers, television and radio, as well in loans or lines of credit to these corporations. MHTC as minority-oriented newspapers, and through the has also committed to participate in the newly-created sponsorship of a minority financial advice talk show in Mini-Loan Program of the Regional Economic Develthe New York area. Chemical Bank also uses telemar- opment Assistance Corporation, which provides techketing campaigns, direct mail, press releases, branch nical assistance to local small businesses presently in posters and bilingual product brochures to promote its Brooklyn. The program will be expanded to cover products. Texas Commerce offers bilingual product small businesses throughout New York City. Both brochures and sponsors a "Neighbors" column in a Chemical Bank and MHTC also have community newspaper serving the black community. development corporations ("CDCs").30 Chemical and MHC currently participate in a vari- Texas Commerce's subsidiary banks engage in ety of programs and offer a variety of products tar- mortgage lending programs to low- and moderategeted to individuals and small businesses in low- and income communities. Texas Commerce developed its moderate-income communities. For example, Chemi- Texas Commerce Opportunity Loan Program, includcal Bank and MHTC participate in the Community ing input from Community Advisory Councils, to Home Buyer's Program of the Federal National Mort- address the needs of low- and moderate-income indigage Association ("FNMA"). In 1991, Chemical Bank viduals with a maximum household income of $40,000. provided 21 mortgages totalling $2.7 million under this The program offers no minimum loan amount and a program on properties located in the Bronx and maximum loan amount of $50,000. Texas Commerce Queens. Chemical also participates in New York and has originated 107 loans under this program, for a total New Jersey in the Housing Opportunities Program, of $3.3 million. Subsidiary banks of Texas Commerce which provides grants to not-for-profit organizations also participate with community organizations in cominvolved in housing-related activities. In addition, munity reinvestment activities. For example, Texas Chemical Bank participates in the Home Improvement Commerce's subsidiary bank, Texas Commerce Bank- Program in connection with New York City. In 1990, Houston, Houston, Texas ("Houston Bank"), is a Chemical Bank provided a commitment of $4.5 million sponsor of New Foundations, a program designed to to the New York City Partnership New Homes Pro- provide financial support, technical assistance and gram and funded a $4.9 million project under the training to selected community development corpora- Urban Development Department's participation loan tions over a three-year period under the direction of program. Chemical Bank's Community Business the United Way of the Texas Gulf Coast. Houston Group originated $24.3 million in loans to small busi- Bank also has committed $500,000 to Housing Oppornesses with annual sales of $1 million and under in tunities, Inc., a non-profit organization established to low- and moderate-income areas in 1990. Chemical help individuals overcome the barriers that prevent Bank has also started a Microbusiness Initiative Pro- them from attaining homeownership.31 Texas Comgram, which provides no-interest loans and grants to merce's subsidiary banks, along with Chemical Bank stimulate the growth of existing and new businesses and MHTC, make loans guaranteed by the SB A. with annual sales of less than $100,000. Chemical Both Chemical and MHC offer special banking Bank's contributions under this program included a services targeted to individuals in low- and moderate- $125,000 no-interest loan to ACCION International to income communities, including Chemical Bank's provide funding for its newly-initiated micro- "Special Banking" checking and savings accounts, enterprise loan pool in Williamsburg, Brooklyn.29 Texas Commerce's "Basic Banking" package, and Chemical has represented that, in addition to the MHTC's "Basic Checking" account. These accounts CRA programs in which Chemical's bank subsidiaries feature low monthly fees and are provided with no participate, Chemical will continue the special com- minimum balance requirement. MHTC also provides munity programs currently provided by MHTC. For example, MHTC indirectly finances small businesses through several small business investment corpora- 30. Chemical Bank and MHTC have indicated that they intend to tions and minority-enterprise small business invest- merge their CDCs following the bank merger and that the new CDC will focus on the construction and rehabilitation of affordable housing as well as on making SB A loans and loans to non-profit organizations. A Community Advisory Board with broad community representation 29. Chemical also participates in the New York State Energy will advise the new CDC. Investment Loan Program which provides fixed- and variable-rate 31. Houston Bank has approximately $18 million in outstanding low-interest loans primarily to small businesses for energy-saving loans to local community development or service organization capital and equipment improvements. projects. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 81 electronic payment services for individuals receiving Chemical and MHC have also taken steps to address money from public assistance programs. Chemical has the disparities in their HMDA data both presently and indicated that it will continue this program following following their merger. For example, Chemical Bank the merger. and MHTC have recently established a program that gives all rejected mortgage applications from residents Lending in Low- and Moderate-Income and Minority of low- and moderate-income communities a "sec- Communities ond" and "third" review by supervisory staff in the respective mortgage lending departments of these The Board has also reviewed the 1990 Home Mortgage banks and by a special group that has been created to Disclosure Act ("HMDA") data reported by Chemical design, market and monitor mortgages for lower inand MHC. Recent amendments to the HMDA for the come consumers. The purpose of these reviews is to first time require banking organizations to collect determine if the application has been properly evalucertain information regarding applicants for bank ated; to ascertain if exceptions to general lending mortgage loans and report the information regarding policy may be appropriate in particular cases; and to both loan approvals and denials to the banking agen- make certain that all available products, including cies and the public. The information includes data on low-downpayment mortgages such as the FNMA the race, gender and income of individual applicants, Community Home Buyer's Program, have been ofin addition to the location of the property securing the fered to the applicant. Chemical has committed to potential loan and the disposition of the application. expand this program to Texas and New Jersey following the proposed acquisition. The HMDA data reported for Chemical and MHC for 1990 indicate that, as a general matter, Chemical In addition, Chemical Bank and MHTC are creating and MHC have extended a significant number and a special "flexible lending pool" to hold mortgages percentage of home mortgage loans in low- and mod- that do not meet secondary market requirements. This erate-income neighborhoods. In certain neighbor- pool, which will receive an initial funding of $10 hoods, however, the data reflect disparities between million, will be administered by the new Chemical the loan rejection rates for minority applicants when CDC and will enable some mortgage applicants, who compared to white applicants. would otherwise be rejected because of special fea- All banks have an obligation to ensure that their tures in their loans, to be considered for approval. lending practices are based on criteria that assure safe Chemical has already established a $20 million pool for and sound lending and equal access to credit by this purpose for use in Texas. creditworthy applicants regardless of race. In this Chemical has also announced that it is establishing a regard, the Board is concerned when the record of an partnership with community organizations, including institution indicates disparities in lending to minority ACORN, that will provide credit counseling services applicants. The Board also recognizes that HMDA to loan applicants that have poor credit histories, data itself provide only a limited measure of any given excessive debt, or need assistance to qualify for a institution's lending in the communities that the insti- mortgage.33 Chemical has also announced that it will tution serves, and that the HMDA data have limitations that make the data an inadequate basis, absent other information, for conclusively determining whether an institution has engaged in illegal discrimi- tion that Texas Commerce or any of its subsidiary banks was nation on the basis of race in making lending decisions. discriminating against Hispanic communities. Texas Commerce Order, at 48-50. The OCC, which is the primary regulator for the Rio In this case, the most recent examinations for CRA Grande Bank, has examined the lending practices of the bank and has compliance conducted of Chemical Bank and MHTC not found evidence of illegal discrimination. Rio Grande Bank received an outstanding CRA rating in that CRA performance examinasampled loan documentation, including files for re- tion. The examination report noted that Rio Grande Bank has specifjected loans. These examinations did not find any ically designed marketing efforts towards the Hispanic community. evidence of illegal discrimination in granting or deny- The Board has also considered allegations that Texas Commerce Bank-Odessa, N.A., Odessa, Texas, is not serving low- and moderateing credit by Chemical Bank or MHTC.32 income areas of Odessa, Texas. At the recommendation of examiners, in 1990 Texas Commerce Bank-Odessa, N.A. expanded its delineation to include all of Ector County, thereby ensuring that no low- and moderate-income neighborhoods would be excluded from its service 32. The Board has also reviewed allegations that Texas Commerce area. The most recent examination report of the bank contains no and certain of its subsidiary banks, including Texas Commerce evidence of illegal discrimination by the Odessa bank. Bank-Rio Grande, N.A., McAllen, Texas ("Rio Grande Bank"), were 33. ACORN will provide credit counseling services to applicants for unresponsive in meeting the needs of local communities and discrim- loans at Chemical Bank and MHTC in Brooklyn and Queens. Since inated against Hispanic communities. The Board reviewed similar January 1990, Texas Commerce's subsidiary bank in Dallas also has allegations by the same Commenter in connection with a previous helped fund a program sponsored by Texas ACORN to establish a application. Texas Commerce Order, at 48-50. In that case, the Board mortgage counseling service and has assisted with Texas ACORN's determined that the record did not support the Commenter's allega- counseling efforts by sending consumer and mortgage lending officers Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
82 Federal Reserve Bulletin • January 1992 apply more flexible standards in New York, New within three blocks of other branch offices of the Jersey and Texas for lower-income applicants who combined Chemical-MHTC bank. This would leave a participate in a bank-approved mortgage loan credit total of approximately 77 full-service branches in lowcounseling program, including recognition of all forms and moderate-income areas in the downstate New of income, including government assistance, using York area. Chemical Bank has stated that additional higher debt-to-income ratios than are customarily used automated teller machines and teller staff will be added for standard mortgages, reducing up-front fees and to the consolidated branches to accommodate the points, and lending up to 95 percent of the value of the increased customer base. Chemical has stated that it property. In addition, Chemical has indicated that it has, and will, abide by its written branch closing policy will expand to New York and New Jersey its program, in connection with these branch closings. currently in place in Texas, to convert certain types of For the foregoing reasons, and based upon the distressed properties that Chemical receives because overall CRA record of Chemical, MHC and their of loan defaults into affordable housing, including subsidiary banks and other facts of record, the Board through tenant or not-for-profit ownership. concludes that convenience and needs considerations, Finally, Chemical and MHC have committed to including the record of performance under the CRA of provide $750 million over the next five years to origi- Chemical and MHC, are consistent with approval of nate loans for housing and community development in this application.34 low- and moderate-income communities. This pro- Chemical has also applied under section 4(c)(8) of gram will include single-family mortgage lending, fi- the BHC Act to acquire shares of the nonbanking nancing for the rehabilitation and construction of companies of MHC listed in the Appendix. The Board multi-family housing, SB A guaranteed loans, loans to has determined by regulation or order that each of the small companies in low- and moderate-income com- activities of these companies is closely related to munities, and grants and loans to community-based banking and generally permissible for bank holding organizations and financial intermediaries. The $750 companies under section 4(c)(8) of the BHC Act. The million commitment is an expansion of a $250 million Board has approved applications by MHC to own commitment that MHC made in April 1991 for the shares in each of these companies, and, in this case, same purposes. Chemical has announced that this Chemical has committed to abide by all of the parammoney will be used for low- and moderate-income eters, conditions and commitments relied on by the communities in New York, New Jersey and Texas. Board in the relevant orders regarding these MHC companies. Branch Locations and Closings Chemical operates subsidiaries engaged in nonbanking activities that compete with many of the nonbank- Chemical Bank and MHTC have a combined total of ing subsidiaries of MHC. In each case, the markets for 91 branches in low- and moderate-income neighbor- these nonbanking services are unconcentrated and hoods in the downstate New York area. Chemical there are numerous providers of these services. As a Bank has proposed to consolidate certain of these result, consummation of this proposal would have a de branches. Chemical Bank's written branch closing minimis effect on competition for these services, and policy states that, prior to any determination on the Board concludes that the proposal would not result branch closings, the bank will hold discussions on the impact on the community of the branch closings with community representatives such as local elected officials, community groups, and merchant associations. 34. One Commenter has requested that the Board hold a public The written branch closing policy also states that hearing or meeting to assess further facts surrounding the CRA performance of Chemical and MHC. Under the Board's rules, the Chemical Bank will consider the extent to which the Board may, in its discretion, hold a public hearing or meeting on an branch closing will affect the availability of banking application to clarify factual issues related to the application and to provide an opportunity for testimony, if appropriate. 12 U.S.C. services in the community. Currently, Chemical Bank §§ 262.3(e) and 262.25(d). proposes, following the merger of Chemical Bank and The Board has carefully considered the Commenter's request for a MHTC, to consolidate 14 branches of the combined public meeting or hearing in this case. The Board has provided an extended period for public comment in this case, permitting interested banking organizations located in low- and moderatepersons a substantial period to provide written comments. The income areas into nearby offices. In each of these Commenter requesting a meeting or hearing has indicated general cases, the branches will be consolidated into offices disagreement regarding the appropriate conclusions to be drawn from the facts of record, but has not identified facts that are material to the Board's decision and that are in dispute. In light of this, the Board has determined that a public meeting or hearing is not necessary to clarify the factual record in these applications, or otherwise warranted in this to participate on a volunteer basis in credit fairs sponsored by Texas case. Accordingly, the Commenter's request for a public meeting or ACORN. hearing on this application is hereby denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 83 in a significantly adverse effect on competition in any Chemical has also requested the Board's authorirelevant market. zation to retain the credit-related property and casu- With respect to the competitive effects of Chemi- alty insurance activities of The CIT Group Holdings, cal's proposed acquisition of 25.2 percent35 of the Inc., Livingston, New Jersey ("CIT"), which CIT voting shares of New York Switch Corporation, Fort currently conducts pursuant to exemption D of the Lee, New Jersey ("NYSC"), the Board notes that the Garn-St. Germain Depository Institutions Act of co-venturer shareholders of NYSC would retain com- 1982 (the "Garn Act").38 CIT will remain a separate plete control over expansion of their own automated subsidiary of Chemical, and the insurance activities teller machine ("ATM") networks, pricing and selec- of CIT will not be conducted by any of Chemical's tion of ATM services, and placement of terminals, other subsidiaries.39 The Board has previously deterand thus could continue to compete with the other mined that CIT was entitled to the privileges of co-venturers in the operation of ATM networks.36 exemption D after its acquisition by MHC and after Additionally, the terms of the agreements between its acquisition by The Dai-Ichi Kangyo Bank, Limit- NYSC and the participating institutions permit the ed.40 For the reasons stated in those orders and in the co-venturers and all other participating institutions to Board's Sovran decision, the Board has determined join other switching networks. Accordingly, the that CIT may continue to engage in insurance activ- Board concludes that consummation of this proposal ities pursuant to exemption D following its acquisiwould not have a significantly adverse effect on tion by Chemical.41 competition in the provision of ATM or POS services Chemical Bank has also applied under section 9 of in any relevant market. the Federal Reserve Act (12 U.S.C. § 321 et seq.) to There is no evidence in the record to indicate that establish branches at the offices of MHTC listed in the approval of the proposed acquisition of shares of any Appendix. The Board has considered the factors it is of the nonbanking companies of MHC, within the required to consider when reviewing applications for parameters, conditions and commitments relied on by establishing branches pursuant to section 9 of the the Board in its orders governing these companies, Federal Reserve Act (12 U.S.C. § 322) and, for the would result in any significantly adverse effects, such reasons discussed in this order, finds those factors to as undue concentration of resources, decreased or be consistent with approval. In connection with its unfair competition, conflicts of interests, or unsound branch application, Chemical Bank has requested perbanking practices that are not outweighed by public mission under section 24A of the Federal Reserve Act benefits. Accordingly, the Board has determined that to make an additional investment in bank premises. the balance of public interest factors it must consider The Board concludes that Chemical Bank's additional under section 4(c)(8) of the BHC Act is favorable and investment in bank premises will support Chemical consistent with approval.37 Corporation, 73 Federal Reserve Bulletin 620 (1987); Chemical New York Corporation, 73 Federal Reserve Bulletin 616 (1987); and Man- 35. Chemical has committed that prior to consummation of the ufacturers Hanover Corporation, 70 Federal Reserve Bulletin 661 proposed merger with MHC either: (1984). (i) sufficient shares will be divested so that following the merger 38. 12 U.S.C. § 1843(c)(8)(D). Exemption D of the Garn Act per- Chemical's interest in NYSC would be less than 25 percent of the mits a bank holding company to engage in "any insurance activity voting shares; or which was engaged in by the bank holding company or any of its (ii) any outstanding extensions of credit by the bank subsidiaries of subsidiaries on May 1, 1982." Such activities may be conducted in the Chemical to NYSC following the merger will be conformed to the grandfathered company's home state, states adjacent thereto, or any requirements of section 23A and 23B of the Federal Reserve Act. state where the company was authorized to operate an insurance 36. NYSC's interchange system operates as a neutral clearing house business before the grandfather date. The Board has previously for electronic funds transfer, payment and withdrawal transactions at determined that an insurance agency which is entitled to continue to ATMs operated by any participating institution. This interchange sell insurance under exemption D does not lose its grandfathered system also offers data transmission and processing services in rights if the agency is acquired by another bank holding company, connection with point-of-sale ("POS") transactions. provided the agency maintains its separate corporate structure and its 37. Chemical has also applied to merge Manufacturers Hanover insurance activities are not extended to other subsidiaries within the Securities Corporation, New York, New York, into Chemical's sub- acquiror's organization. Sovran Financial Corporation, 73 Federal sidiary, Chemical Securities, Inc., New York, New York ("CSI"). Reserve Bulletin 672 (1987) ("Sovran"). This determination has been Both of these subsidiaries are authorized to engage in limited securi- upheld by the courts. National Ass'n of Casualty and Surety Agents ties underwriting and dealing, full-service brokerage, private place- v. Board of Governors, 856 F.2d 282, reh'g denied en banc, 862 F.2d ment and riskless principal activities. CSI is also authorized to engage 351 (D.C. Cir. 1988), cert, denied, 490 U.S. 1090 (1989). in financial advisory activities. These activities will be conducted 39. Chemical will hold 40 percent of the voting shares of CIT. The subject to all of the commitments and limitations in the Board's remainder of CIT's shares will continue to be held by The Dai-Ichi regulations and orders. 12 C.F.R. 225.25(b)(4), (15) and (16); Manu- Kangyo Bank, Limited, Tokyo, Japan. facturers Hanover Corporation, 76 Federal Reserve Bulletin 674 40. The Dai-Ichi Kangyo Bank, Limited, 76 Federal Reserve Bulle- (1990); Chemical Banking Corporation, 76 Federal Reserve Bulletin tin 75 (1990). Manufacturers Hanover Corporation, 70 Federal Re- 672 (1990); Manufacturers Hanover Corporation et al., 73 Federal serve Bulletin 452 (1984). Reserve Bulletin 930 (1987); Chemical New York Corporation et al., 41. Pursuant to exemption D, CIT may sell insurance only in New 73 Federal Reserve Bulletin 731 (1987); Manufacturers Hanover York, the home state of MHC under the Douglas Amendment, states Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
84 Federal Reserve Bulletin • January 1992 Bank's acquisition of the additional MHTC premises, nations as to Chemical's nonbanking activities are and is consistent with approval. also subject to all of the conditions contained in the Chemical Bank has also given notice of its intent to Board's Regulation Y, including those in sections acquire Manufacturers Hanover International Finance 225.4(d) and 225.23(b)(3) (12 C.F.R. 225.4(d) and Corporation and Manufacturers Hanover International 225.23(b)(3)), and to the Board's authority to require Banking Corporation, corporations of MHTC char- such modification or termination of the activities of a tered pursuant to the Edge Act. Based on all the facts holding company or any of its subsidiaries as the of record, and for the reasons discussed in this order, Board finds necessary to assure compliance with, or the Board believes that the financial and managerial prevent evasions of, the provisions and purposes of resources of Chemical Bank are consistent with the the BHC Act and the Board's regulations and orders acquisition of these corporations. The acquisition issued thereunder. The commitments and conditions would also result in the continuation of the interna- relied on in reaching this decision are conditions tional services currently provided, and would be in the imposed in writing by the Board in connection with public interest. Accordingly, the Board finds that the its findings and decision and may be enforced in continued operation of these corporations upon acqui- proceedings under applicable law. sition by Chemical Bank is consistent with the Edge Neither the bank holding company merger nor the Act and Regulation K. bank merger may be consummated before the thirtieth Chemical Bank has provided notice, pursuant to calendar day following the effective date of this Order, the Board's Regulation K, of its intent to merge or later than four months after the effective date of this Chemical Bank of Canada, a direct foreign bank Order, unless such period is extended for good cause subsidiary of Chemical Bank, with Manufacturers by the Board or by the Federal Reserve Bank of New Hanover Bank of Canada, an indirect subsidiary of York, acting pursuant to delegated authority. Manufacturers Hanover International Finance Cor- By order of the Board of Governors, effective poration, and thereafter to hold the resulting bank; November 29, 1991. and to establish branches in certain countries in which neither Chemical nor any of its affiliates have Voting for this action: Chairman Greenspan and Governors branches. The Board has reviewed these proposals Mullins, LaWare, and Lindsey. Voting against this action: Governor Angell. Absent and not voting: Governor Kelley. and determined that the merger of Chemical Bank of Canada with Manufacturers Hanover Bank of Can- WILLIAM W. WILES ada is consistent with the factors specified in the Secretary of the Board Edge Act, section 25 of the Federal Reserve Act and the Board's Regulation K, and that the establishment Appendix of branches is consistent with section 25 and the Board's Regulation K. In addition, Chemical has Chemical will acquire all of the voting shares of the proposed to acquire 100 percent of the voting shares following nonbank subsidiaries of MHC: of Manufacturers Hanover Leasing International (a) Manufacturers Hanover Securities Corporation, Corporation and 29 percent of the voting shares of New York, New York("MHSC"), and thereby en- Massuh S.A. The Board has reviewed these propos- gage in: als and determined that the acquisition of Manufac- (1) underwriting and dealing in government obliturers Hanover Leasing International Corporation gations and money market instruments, pursuant and of the shares of Massuh S.A. are consistent with to section 225.25(b)(16) of the Board's Regulation the factors specified in section 4(c)(13) of the BHC Y and Manufacturers Hanover Corporation, 70 Act and the Board's Regulation K. Based on the facts Federal Reserve Bulletin 661 (1984); of record, the Board has determined that disapproval (2) underwriting and dealing in, to a limited exof the investments is not warranted. tent, certain municipal revenue bonds, 1-4 family Based on the foregoing and other facts of record, mortgage-related securities, commercial paper and subject to the commitments made by Chemical and consumer-receivable-related securities, purand all its subsidiaries in this case and the conditions suant to Chemical New York Corporation, et al., established by the Board, the Board has determined 73 Federal Reserve Bulletin 731 (1987); and Manthat the applications should be, and hereby are, ufacturers Hanover Corporation, 73 Federal Reapproved. Approval of this proposal is specifically serve Bulletin 620 (1987); conditioned on compliance by Chemical and all of its (3) providing investment advisory and brokerage subsidiaries with the commitments made in connec- services separately and on a combined basis to tion with its applications, as supplemented, and with institutional customers, pursuant to sections the conditions referenced in this order. The determi- 225.25(b)(4) and (15) of the Board's Regulation Y Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 85 and Manufacturers Hanover Corporation, 73 account and the account of others, pursuant to Federal Reserve Bulletin 930 (1987); and Manu- section 225.25(b)(1) of the Board's Regulation Y; facturers Hanover Corporation, 70 Federal Re- and serve Bulletin 661 (1984); and (h) Manufacturers Hanover Capital Corporation, (4) acting as agent in the private placement of all New York, New York, and thereby engage in purtypes of securities and acting as riskless principal chasing and selling agricultural and rural housing in buying and selling securities, pursuant to Man- loans in connection with programs sponsored by the ufacturers Hanover Corporation, 76 Federal Re- Federal Agricultural Mortgage Corporation, purserve Bulletin 674 (1990); suant to section 225.25(b)(1) of the Board's Regula- (b) Manufacturers Hanover Futures & Options Inc., tion Y; Chicago, Illinois, and thereby engage, on a world- (i) Manufacturers Hanover Servicing, Inc., Deerwide basis, in brokerage and investment advisory field Beach, Florida, and thereby acquire certain activities for certain futures (including certain op- assets of Centrust Mortgage Company, Deerfield tions on futures) and options contracts traded on Beach, Florida, and engage in mortgage lending major commodities and securities exchanges, pur- activities pursuant to section 225.25(b)(1) of the suant to sections 225.25(b)(18) and (19) of the Board's Regulation Y. Board's Regulation Y and Manufacturers Hanover Corporation, 76 Federal Reserve Bulletin 11A Chemical will also acquire shares, presently owned by (1990); Manufacturers Hanover Corporation, 72 MHC, of the following companies: Federal Reserve Bulletin 144 (1986); and Manufac- (a) 12.6 percent, for a total of 25.2 percent, of the turers Hanover Corporation, 70 Federal Reserve outstanding voting shares of The New York Switch Bulletin 369 (1984); Corporation, Fort Lee, New Jersey, and thereby (c) MHT Holding (Delaware) Inc., Wilmington, Del- engage in data processing and related activities, aware, and thereby indirectly acquire Manufactur- pursuant to section 225.25(b)(7) of the Board's Regers Hanover Trust Company of California, Los ulation Y and Barclays Bank PLC and Barclays Angeles, California, and Manufacturers Hanover Bank International Limited, et al., 71 Federal Re- Trust Company of Florida, Miami, Florida, and serve Bulletin 113 (1985); thereby engage in trust company functions, pursu- (b) 4.7 percent of the outstanding (Class A) voting ant to section 225.25(b)(3) of the Board's Regula- shares of Liberty Brokerage, Inc., New York, New tion Y; York (which are presently held by Manufacturers (d) Manufacturers Hanover Educational Services Hanover Securities Holdings, Inc., and MH Broker Corporation, Hicksville, New York ("MHES"), Holdings, Inc.), and thereby acquire shares of a and thereby make installment loans to individuals; U.S. government and federal agency securities broservice student loans; and offer a tuition budget plan ker-dealer through a joint venture, pursuant to secunder which MHES receives periodic payments tions 225.25(b)(15) and (16) of the Board's Regulafrom parents of students and subsequently disburses tion Y and BankAmerica Corporation, et al., 73 the funds to designated educational institutions as Federal Reserve Bulletin 362 (1987); and tuition bills come due, pursuant to section (c) 40 percent of the outstanding voting shares of 225.25(b)(1) of the Board's Regulation Y and Man- The CIT Group Holdings, Inc., Livingston, New ufacturers Hanover Corporation, Federal Reserve Jersey ("CIT") (which are presently held by MHC Bulletin 452 (1984); Holding (Delaware) Inc.), and thereby engage in (e) Manufacturers Hanover Real Estate, Inc., New commercial finance; factoring; sales finance; credit York, New York, and thereby engage in real estate servicing; community development; data proinvestment advisory services; real estate appraising; cessing; the sale of credit-related life, accident and arranging commercial real estate equity financing; health and disability insurance, and credit related and mortgage financing, pursuant to sections property and casualty insurance; management con- 225.25(b)(1), (4), (13) and (14) of the Board's Regu- sulting to depository institutions; the leasing of lation Y; personal and real property, and acting as agent, (f) Manufacturers Hanover Wheelease, Inc., Hicks- broker, or adviser in leasing such property, includville, New York, and thereby engage in the direct ing leases of personal property in which CIT may leasing of motor vehicles to the public, pursuant to rely for its compensation on an estimated residual section 225.25(b)(5) of the Board's Regulation Y; value of the leased property at the expiration of the initial lease term of up to 100 percent of the acqui- (g) Manufacturers Hanover New Jersey Corporasition cost of the property; brokering of loans and tion, Livingston, New Jersey, and thereby engage in providing advice with respect thereto, and operating making, servicing, and brokering loans for its own Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
86 Federal Reserve Bulletin • January 1992 a collection agency, pursuant to sections (30) 1205 Fulton Street, Brooklyn, New York; 225.25(b)(1), (5), (6), (7), (11), (23), and (8)(i) and (iv) (31) 127 Seventh Avenue, Brooklyn, New York; (Exemptions A and D of section 4(c)(8) of the BHC (32) 1492 Rockaway Parkway, Brooklyn, New York; Act) of the Board's Regulation Y; and Dai-Ichi (33) 1505 Avenue J, Brooklyn, New York; Kangyo Bank, Limited/Manufacturers Hanover (34) 1509 Foster Avenue, Brooklyn, New York; Corporation, 76 Federal Reserve Bulletin 960 (35) 1599 Flatbush Avenue, Brooklyn, New York; (1990); Dai-Ichi Kangyo Bank, Limited, 76 Federal (36) 1663 East 17th Street, Brooklyn, New York; Reserve Bulletin 75 (1990); Manufacturers Hanover (37) 1722 Avenue U, Brooklyn, New York; Corporation, 70 Federal Reserve Bulletin 452 (38) 177 Montague Street, Brooklyn, New York; (1984); and financial advisory activities, including (39) 1797 Pitkin Avenue, Brooklyn, New York; providing advice with respect to mergers, acquisi- (40) 1902 86th Street, Brooklyn, New York; tions, and other corporate transactions; providing (41) 1987 Flatbush Avenue, Brooklyn, New York; feasibility studies; providing valuation services; ren- (42) 20 Flatbush Avenue, Brooklyn, New York; dering fairness opinions; and providing advice in (43) 201-3 Avenue U, Brooklyn, New York; connection with loan and interest rate transactions, (44) 2084 Linden Boulevard, Brooklyn, New York; in accordance with The Fuji Bank, Limited, 75 (45) 210 Flushing Avenue, Brooklyn, New York; Federal Reserve Bulletin 577 (1989). CIT would (46) 225 Havemeyer Street, Brooklyn, New York; engage in these activities on a worldwide basis. (47) 257 Utica Avenue, Brooklyn, New York; (48) 2623 East 17th Street, Brooklyn, New York; Chemical Bank will acquire the following branches (49) 2929 Avenue U, Brooklyn, New York; (50) 3380 Fulton Street, Brooklyn, New York; and facilities: (51) 444 Fifth Avenue, Brooklyn, New York; (52) 446-48 McDonald Avenue, Brooklyn, Full-Service Branches New York; (53) 450 Clarkson Avenue, Brooklyn, New York; (1) 1972 Albany Schenectady Road, Colonie, (54) 486 Neptune Avenue, Brooklyn, New York; New York; (55) 4901 Thirteenth Avenue, Brooklyn, New York; (2) 360 Delaware Avenue, Delmar, New York; (56) 5101 Fourth Avenue, Brooklyn, New York; (3) 63 State Street, Albany, New York; (57) 618 Brighton Beach Avenue, Brooklyn, (4) One Old Loudon Road, Latham, New York; New York; (5) 128 East Fordham Road, Bronx, New York; (58) 6501-05 Eighteenth Avenue, Brooklyn, (6) 1355 Oak Point Avenue, Bronx, New York; New York; (7) 1536 Westchester Avenue, Bronx, New York; (59) 7510 Fifth Avenue, Brooklyn, New York; (8) 1705 Crosby Avenue, Bronx, New York; (60) 798 Manhattan Avenue, Brooklyn, New York; (9) 207 City Island Avenue, Bronx, New York; (61) 819 Grand Street, Brooklyn, New York; (10) 2126 White Plains Road, Bronx, New York; (62) 8724 4th Avenue, Brooklyn, New York; (11) 2260 Bartow Avenue, Bronx, New York; (63) 883 Flatbush Avenue, Brooklyn, New York; (12) 3408 Jerome Avenue, Bronx, New York; (64) 891 Utica Avenue, Brooklyn, New York; (13) 3480 Boston Road, Bronx, New York; (65) 9601 Foster Avenue, Brooklyn, New York; (14) 3555 Johnson Avenue, Bronx, New York; (66) 975 Bedford Avenue, Brooklyn, New York; (15) 360 East 149th Street, Bronx, New York; (67) 183 East Main Street, Rochester, New York; (16) 3780 East Tremont Avenue, Bronx, New York; (68) 1855 Monroe Avenue, Brighton, New York; (17) 5656 Riverdale Avenue, Bronx, New York; (69) 2317 Lyell Avenue, Gates, New York; (18) 699 Morris Park Avenue, Bronx, New York; (70) 2450 Ridge Road West, Greece, New York; (19) 748 Allerton Avenue, Bronx, New York; (71) 2990 Culver Road, Irondequoit, New York; (20) 880 White Plains Road, Bronx, New York; (72) 3333 West Henrietta Road, Henrietta, New York; (21) 101 North Union Street, Olean, New York; (73) 3380 Monroe Avenue, Pittsford, New York; (22) 500 Delaware Avenue, Olean, New York; (74) 6600 Pittsford-Palmyra Road, Perinton, (23) 60 West Main Street, Allegany, New York; New York; (24) 7 Main Street, Portville, New York; (75) 807 Fairport Road, E. Rochester, New York; (25) 1188 Niagara Falls Boulevard, Tonawanda, (76) 964 Ridge Road, Webster, New York; New York; (77) 100 Duffy Avenue, Hicks ville, New York; (26) 2690 Walden Avenue, Cheektowaga, New York; (78) 1020 Port Washington Boulevard, Port Washing- (27) 420 Main Street, Buffalo, New York; ton, New York; (28) 5712 Main Street, Williamsville, New York; (79) 1218 Broadway, Hewlett, New York; (29) 999 Broadway, Buffalo, New York; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 87 (80) 1510 Old Northern Boulevard, Roslyn, (124) 322 Eighth Avenue, New York, New York; New York; (125) 34 East 34th Street, New York, New York; (81) 163 West Merrick Road, Valley Stream, (126) 35 East 72nd Street, New York, New York; New York; (127) 350 Fifth Avenue, New York, New York; (82) 184 Old Country Road, Mineola, New York; (128) 3515 Broadway, New York, New York; (83) 1900 Northern Boulevard, Manhasset, (129) 378 Avenue of the Americas, New York, New York; New York; (84) 234 Middle Neck Road, Great Neck, New York; (130) 386 Park Avenue South, New York, New York; (85) 2631 Merrick Road, Bellmore, New York; (131) 4 New York Plaza, New York, New York; (86) 419 Central Avenue, Cedarhurst, New York; (132) 40 East 42nd Street, New York, New York; (87) 60 Cutter Mill Road, Great Neck Plaza, (133) 40 Wall Street, New York, New York; New York; (134) 401 Madison Avenue, New York, New York; (88) 7600 Jericho Turnpike, Woodbury, New York; (135) 405 Lexington Avenue, New York, New York; (89) 765 Stewart Avenue, Garden City East, (136) 407 Broadway, New York, New York; New York; (137) 450 Third Avenue, New York, New York; (90) 951 Atlantic Avenue, Baldwin, New York; (138) 510 Fifth Avenue, New York, New York; (91) Roosevelt Field Shopping Center, Garden City (139) 530 Seventh Avenue, New York, New York; East, New York; (140) 55 Broad Street, New York, New York; (92) 100 Main Street, Lockport, New York; (141) 55 West 125th Street, New York, New York; (93) 1 Battery Park Plaza, New York, New York; (142) 598 Madison Avenue, New York, New York; (94) 1 World Financial Center, Mezz Level, (143) 619 Main Street, Roosevelt Island, New York; New York, New York; (144) 681 Eighth Avenue, New York, New York; (95) 1065 Avenue of the Americas, New York, (145) 682 Broadway, New York, New York; New York; (146) 702-4 Lexington Avenue, New York, (96) 109 Delancey Street, New York, New York; New York; (97) 110 West 34th Street, New York, New York; (147) 79 Eighth Avenue, New York, New York; (98) 1122 Lexington Avenue, New York, New York; (148) 855 Avenue of the Americas, New York, (99) 1180 Third Avenue, New York, New York; New York; (100) 1185 Avenue of the Americas, New York, (149) 866 Third Avenue, New York, New York; New York; (150) 90 West 96th Street, New York, New York; (101) 1191 Second Avenue, New York, New York; (151) 969 Eighth Avenue, New York, New York; (102) 1230 Avenue of the Americas, New York, (152) Plaza Level, 5 World Trade Center, New York, New York; New York; (103) 1251 Third Avenue, New York, New York; (153) 1802 Teall Avenue, Syracuse, New York; (104) 1275 Avenue of the Americas, New York, (154) 361 South Salina Street, Syracuse, New York; New York; (155) 13-15 Sussex Street, Port Jervis, New York; (105) 130 Fifth Avenue, New York, New York; (156) 23 Lake Street. Monroe, New York; (106) 131 East 23rd Street, New York, New York; (157) 375 Windsor Highway, Vails Gate, New York; (107) 1330 First Avenue, New York, New York; (158) Church Street & Route #17 M, Harriman, (108) 1460 Broadway, New York, New York; New York; (109) 147 East 86th Street, New York, New York; (159) Route 17M, Near Route 6, Wawayanda, (110) 1513 First Avenue, New York, New York; New York; (111) 1633 Broadway, New York, New York; (160) Route #17M, Monroe, New York; (112) 2 Pennsylvania Plaza, New York, New York; (161) 104-08 Rockaway Beach Boulevard, Queens, (113) 200 West 79th Street, New York, New York; New York; (114) 2045 Broadway, New York, New York; (162) 118-30 Queens Boulevard, Queens, New York; (115) 221 Park Avenue South, New York, New York; (163) 156-18 Northern Boulevard, Queens, (116) 230 Second Avenue, New York, New York; New York; (117) 231 Grand Street, New York, New York; (164) 159-17 Jamaica Avenue, Queens, New York; (118) 2361-79 Broadway, New York, New York; (165) 175-01 Rockaway Boulevard, Queens, (119) 2760 Broadway, New York, New York; New York; (120) 281 Broadway, New York, New York; (166) 175-57 Hillside Avenue, Queens, New York; (121) 30 Rockefeller Plaza, New York, New York; (167) 19-19 Francis Lewis Boulevard, Queens, (122) 300 West 125th Street, New York, New York; New York; (123) 32 University Place, New York, New York; (168) 205-19 Hillside Avenue, Queens, New York; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
88 Federal Reserve Bulletin • January 1992 (169) 21-21 Broadway, Queens, New York; (217) 21 East Prospect Avenue, Mount Vernon, (170) 253-15 Union Turnpike, Queens, New York; New York; (171) 29-21 Bridge Plaza North, Queens, New York; (218) 28 Lecount Place, New Rochelle, New York; (172) 31-42 Steinway Street, Queens, New York; (219) 314 South Broadway, Yonkers, New York; (173) 37-29 Junction Boulevard, Queens, New York; (220) 417 Albany Post Road, Cortlandt, New York; (174) 38-46 Bell Boulevard, Queens, New York; (221) 555 Saw Mill River Road, North Elmsford, (175) 41-01 Kissena Boulevard, Queens, New York; New York; (176) 43-33 91st Place, Queens, New York; (222) 660-662 Central Park Avenue, Greenville, (177) 47-11 Queens Boulevard, Queens, New York; New York; (178) 49-01 Grand Avenue, Queens, New York; (223) 722 North Bedford Road, Bedford Hills, (179) 55-60 Myrtle Avenue, Queens, New York; New York; (180) 59-26 Woodside Avenue, Queens, New York; (224) 81 Knoll wood Road, Fairview, New York; (181) 63-63 108th Street, Queens, New York; (225) 984 North Broadway, Yonkers, New York; (182) 71-04 Woodhaven Boulevard, Queens, New York; (226) Old Post Road, (Route #22), Bedford Village, (183) 72-71 Main Street, Queens, New York; New York; (184) 77-22 21st Avenue, Queens, New York; (227) Route 6 & Lee Blvd., Jefferson Valley, (185) 81-20 Northern Boulevard, Queens, New York; New York; (186) 120 Hoosick Street-Troy Plaza, Troy, New York; (187) 2754 Hylan Boulevard, Staten Island, Limited Purpose Branches1 New York; (188) 330 St. Marks Place, Staten Island, New York; (1) 420 Lexington Avenue - Suite 1906, New York, (189) 108 Main Street, Nyack, New York; New York; (190) 41 South Middletown Road, Nanuet, New York; (2) 300 Cadman Plaza West, Brooklyn, New York; (191) 76 North Main Street, New City, New York; (3) 95-25 Queens Blvd., Queens, New York; (192) #466, Route 202, Ramapo, New York; (4) 2275 Coleman Street, Brooklyn, New York; (193) Clifton County Mall, Clifton Park, New York; (5) 50 Charles Lindberg Blvd., Uniondale, New York; (194) 100 Main Street, South Glens Falls, New York; (6) 55 Water Street, New York, New York; (195) 306 State Street, Schenectady, New York; (7) 130 John Street, New York, New York; (196) 1090 Suffolk Avenue, Brentwood, New York; (8) 140 E. 45th Street, New York, New York; (197) 1261 Veterans Memorial Highway, Hauppauge, (9) 44 Wall Street, New York, New York; New York; (10) 560 Washington Street, New York, New York; (198) 128 West Main Street, Bayshore, New York; (11) 450 West 33rd Street, New York, New York; (199) 140 Bay Shore Road, Deer Park, New York; (12) 119 South 1st Street, Olean, New York; (200) 150 East Sunrise Highway, North Lindenhurst, New York; Electronic Facilities2 (201) 1701 Sunrise Highway, Bay Shore, New York; (202) 33 Gerard Street, Huntington, New York; (1) 352 East 86th Street, New York, New York; (203) 340 Howells Road, Bayshore, New York; (2) 515 East 72nd Street, New York, New York; (204) 39 Vanderbilt Parkway, Commack, New York; (3) 2000 Westchester Avenue, Harrison, New York; (205) 4800 Sunrise Highway, Bohemia, New York; (4) 195 Montague Street, Brooklyn, New York; (206) 5499 Nesconset Highway, Mt. Sinai, New York; (5) 2260 Barton Avenue, Bronx, New York; (207) 5801 Sunrise Highway-Sun-Vet Mall, Holbrook, (6) 1250 Route 104, Ontario, New York; New York; (7) Wyckoff Avenue, Brooklyn, New York; (208) 601 Veterans Memorial Highway, Hauppauge, (8) 115 West State Street, Olean, New York; New York; (209) 699 Old Country Road, Dix Hills, New York; Public Accomodation Offices3 (210) 700-90 Patchogue-Yaphank Road, Medford, New York; (1) World Trade Center, Store C29, Concourse Level, (211) 836 Fort Salonga Road, Huntington, New York; New York, N.Y. 10048 (212) 999 Middle Country Road, Selden, New York; (213) 1999 Ridge Road, Ontario, New York; (214) 1100 East Boston Post Road, Mamaroneck, 1. These branches engage in commercial lending activities. New York; 2. These are stand-alone ATMs. See N.Y. Banking Law § 105-a (215) 1350 Boston Post Road, Mamaroneck, New York; (McKinney 1990). 3. These are adjuncts to branches. See N.Y. Banking Law § 191 (216) 20 Mamaroneck Avenue, White Plains, New York; (McKinney 1990). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 89 (Br. #1,5 World Trade Center, Level at Vesey Street, Magna Group, Inc. New York, N.Y. 10048) Belleville, Illinois (2) Auto Office, 115 West State Street, Olean, N.Y. 14760 Magna Acquisition Corporation (Br. #Cattaraugus County, 101 North Union Street, St. Louis, Missouri Olean, N.Y. 14760) Order Approving Formation of Bank Holding Employee Branches4 Company and Acquisition of Banks and Nonbanking Subsidiaries (1) 270 Park Avenue, New York, New York; Magna Group, Inc., Belleville, Illinois ("Magna"), a bank holding company within the meaning of the Bank (2) 100 Duffy Avenue, Hicksville, New York; Holding Company Act ("BHC Act"), and Magna Acquisition Corporation, St. Louis, Missouri Employee Convenience Centers5 ("MAC"), a newly formed, wholly-owned, nonoperating subsidiary of Magna, have applied for the Board's approval under section 3 of the BHC Act (12 (1) 140 E. 45th Street, New York, New York; U.S.C. § 1842) to acquire Landmark Bancshares Cor- (2) 130 John Street, New York, New York; poration, St. Louis, Missouri ("Landmark"), and (3) 4 New York Plaza, New York, New York; and thereby acquire Landmark's banking subsidiaries.1 (4) West 33rd Street, New York, New York. Applicant proposes to acquire Landmark through the Dissenting Statement of Governor Angell merger of Landmark into MAC, and MAC would become a second-tier bank holding company upon its merger with Landmark. I dissent from the Board's action in this case. While I recognize that this is a close case, in my view, bank Magna has also applied for the Board's approval holding companies seeking to engage in significant under section 4(c)(8) of the BHC Act to acquire Landexpansion that is dependent on raising new capital mark BVI Limited, St. Louis, Missouri ("BVI"), and should raise the needed capital prior to the expansion. thereby act as principal, agent, and broker for credit- I am of this view because of the risks that attend any related life, accident, health, disability, and unemploysuch future capital raising effort. In view of the fact ment insurance, and Landmark Trust Company, Fairthat capital is critical to the decision in this case, I view Heights, Illinois ("Trust Company"), and cannot accept as a basis for approval a commitment to thereby engage in trust company activities. These raise that capital at some point in the future after the activities are authorized for bank holding companies acquisition is consummated. pursuant to the Board's Regulation Y, 12 C.F.R. 225.25(b)(8)(i) and (b)(3). I am also concerned about the reliance placed on the achievement of cost savings in this case. I believe that Notice of the applications, affording interested perthis merger presents an opportunity for cost savings, sons an opportunity to submit comments, has been and that cost savings may be realized. The question duly published (56 Federal Register 33,934 (1991)). that remains, however, is whether revenues will de- The time for filing comments has expired, and the crease along with costs so as to prevent the realization Board has considered the applications and all the of the increased efficiency necessary to add to profits comments received in light of the factors set forth in and capital. If needed capital were in place prior to the sections 3(c) and 4(c)(8) of the BHC Act.2 expansion, then the question concerning efficiency and profits would be a corporate risk and of lesser concern. December 3, 1991 1. Landmark's banking subsidiaries are: Landmark Bank, Clayton, Missouri; Landmark KCI Bank, Kansas City, Missouri; Landmark Bank of Southwest Missouri, Ozark, Missouri; Landmark Bank of Carbondale, Carbondale, Illinois; Landmark Bank of St. Charles County, St. Charles, Missouri; Landmark Bank of Madison County, Highland, Illinois; Landmark Bank of Kansas City, Kansas City, Missouri; Landmark Bank of Illinois, Fairview Heights, Illinois; Landmark Bank of Randolph County, Sparta, Illinois; and Landmark Bank of Washington County, Nashville, Illinois. 2. The Office of the Comptroller of the Currency ("OCC") has indicated that it poses no objection to the acquisition. The OCC is the 4. These are branches established primarily for employee use. primary federal regulator of two of Magna's five subsidiary banks, 5. These are ATMs established primarily for employee use. including Magna's lead bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
90 Federal Reserve Bulletin • January 1992 Section 3(d) of the BHC Act, the Douglas Amend- ing organization in Illinois, controlling total deposits of ment, prohibits the Board from approving an applica- approximately $446.4 million, representing less than 1 tion by a bank holding company to acquire control of percent of total commercial banking deposits in Illiany bank located outside of the bank holding com- nois. pany's home state, unless such acquisition is "specif- Upon consummation of this proposal, Magna would ically authorized by the statute laws of the State in remain the eighth largest commercial banking organiwhich [the] bank is located, by language to that effect zation in Illinois, with Illinois deposits of $2.50 billion, and not merely by implication." Magna's home state is representing 1.9 percent of total deposits in commer- Illinois, and Landmark's home state is Missouri.3 cial banking organizations in Illinois, while becoming The statute laws of Missouri expressly authorize the the eighth largest commercial banking organization in acquisition of a bank or bank holding company located Missouri, controlling deposits of $1.32 billion, reprein Missouri by a bank holding company located in a senting 2.7 percent of total deposits in commercial state that is contiguous to Missouri, like Illinois, if the banking organizations in that state. Consummation of contiguous state authorizes acquisitions of banks or this proposal would not result in any significantly bank holding companies by Missouri bank holding adverse effect on the concentration of banking recompanies under conditions that are substantially the sources in Illinois or Missouri. same.4 Illinois law also expressly authorizes the acqui- Magna and Landmark compete directly in two marsition of an Illinois bank or bank holding company by kets, the St. Louis, Missouri9 and Chester/Sparta, a bank holding company located in a state the laws of Illinois10 banking markets. Consummation of this which expressly authorize the acquisition of a bank by transaction would not significantly increase concentraan Illinois bank holding company under qualifications tion levels in either of these markets11 and, following that are not unduly restrictive when compared to those consummation, both markets would remain only modimposed by Illinois law.5 erately concentrated.12 Moreover, numerous compet- The Missouri Commissioner of Finance and the itors would remain in both markets. Illinois Commissioner of Banks and Trust Companies Based on all the facts of record, the Board has have determined that the reciprocal provisions of the determined that consummation of this proposal would laws of Illinois and Missouri are compatible and permit not have a significantly adverse effect on the conceninterstate acquisitions of banks and bank holding com- tration of resources or on competition in any relevant panies between the two states.6 In addition, the Mis- banking market. souri Commissioner of Finance has approved the In evaluating these applications, the Board has acquisition.7 For these reasons, the Board concludes considered the financial and managerial resources of that the proposed acquisition is not barred by the Magna and the effect on these resources of the pro- Douglas Amendment. Magna is the eighth largest commercial banking organization in Illinois, controlling five subsidiary 9. The St. Louis, Missouri banking market is approximated by the banks with total deposits of approximately $2.06 bil- City of St. Louis; St. Louis, Jefferson and St. Charles Counties in lion, representing 1.6 percent of total commercial Missouri; St. Clair County, Illinois, excluding Lenzburg and Marissa banking deposits in the state.8 None of Magna's bank- townships; plus portions of Franklin County, Missouri (Boles and Calvey townships), Madison County, Illinois (Godfrey, Foster, Alton, ing subsidiaries are located in Missouri. Landmark is Wood River, Fort Russell, Chouteau, Edwardsville, Venice, Granite the eighth largest commercial banking organization in City, Nameoki, Collinsville, Jarvis, Pin Oak and Hamel townships), and Monroe County, Illinois (Columbia, Moredock, New Harmony, Missouri, controlling five subsidiary banks with total Waterloo, Harrisonville and Bluff townships). deposits of $1.32 billion, representing 2.7 percent of 10. The Chester/Sparta, Illinois banking market is approximated by total deposits in commercial banking organizations in Randolph County, Illinois, plus Prairie du Long, New Design, Mitchie and Renault townships in Monroe County, Illinois, and Lenzburg and the state. Landmark also operates five banks in Illi- Marissa townships in St. Clair County, Illinois. nois, and is the thirty-eighth largest commercial bank- 11. Under the revised Department of Justice Merger Guidelines, 49 Federal Register 26,823 (June 29, 1984), a market in which the post-merger HHI is between 1000 and 1800 is considered moderately concentrated. The Justice Department has informed the Board that a 3. A bank holding company's home state is that state in which the bank merger or acquisition generally will not be challenged (in the operations of the bank holding company's banking subsidiaries were absence of other factors indicating anticompetitive effects) unless the principally conducted on July 1, 1966, or the date on which the post-merger HHI is at least 1800 and the merger increases the HHI by company became a bank holding company, whichever is later. at least 200 points. The Justice Department has stated that the higher 4. Mo. Rev. Stat. § 362.925 et seq. (1991 Cum. Supp.). than normal HHI thresholds for screening bank mergers for anticom- 5. 111. Rev. State. Ch. 17 § 2501 et seq. (1991 Cum. Supp.). petitive effects implicitly recognizes the competitive effect of limited- 6. Cooperative Agreement between the State of Missouri and the purpose lenders and other non-depository financial entities. State of Illinois dated September 18, 1986. 12. In the St. Louis, Missouri banking market, the Herfindahl- 7. See Order dated September 18, 1991, from Earl L. Manning, Hirschman Index ("HHI") would increase by 58 points from 1419 to Commissioner, Division of Finance, State of Missouri. 1477. In the Chester/Sparta, Illinois banking market, the HHI would 8. All data are as of June 30, 1990. increase by 72.5 points from 1472.5 to 1545. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 91 posed acquisition. The Board has stated and continues nonperforming assets and management policies emto believe that capital adequacy is an important factor phasizing asset quality. Magna has established groups in the analysis of bank holding company expansion of experienced individuals to provide continuing attenproposals.13 In this regard, the Board has stated that it tion to all criticized assets.15 On the basis of all the expects banking organizations contemplating expan- facts of record, including the commitment of Magna, sion proposals to maintain strong capital levels sub- the Board concludes that the financial and managerial stantially above the minimum levels specified in the resources and future prospects of Magna, MAC, Board's Risk-Based Capital Guidelines14 without sig- Landmark and their respective subsidiaries are consisnificant reliance on intangibles, in particular goodwill. tent with approval of this proposal.16 Considerations The Board carefully analyzes the effect of expansion relating to the convenience and needs of the commuproposals on the preservation or achievement of nities to be served also are consistent with approval. strong capital levels and has adopted a policy that Magna has also applied under section 4(c)(8) of the there should be no significant diminution of financial BHC Act to engage through B VI in acting as principal, strength below these levels for the purpose of effecting agent and broker for insurance that is directly related major expansion proposals. to extensions of credit by banking affiliates of BVI, In this case, Magna proposes to purchase all of the and through Trust Company in performing fiduciary outstanding common and preferred shares of Land- and custodial functions that may be performed by a mark through a share exchange, and Magna will incur trust company. As noted above, these activities are no debt as a result of the transaction. Although the permissible for bank holding companies under the proposal will result in a decline in the capital ratios of Board's Regulation Y, and Magna will conduct these Magna following consummation of the proposal, Ma- activities in accordance with the Board's regulation gna will remain well capitalized with capital ratios and decisions regarding these activities. significantly above the minimum levels specified in the Magna operates subsidiaries that compete directly Board's Risk Based Capital Guidelines. In addition, with Landmark in these activities. Each of these Magna has committed that its tangible leverage ratio subsidiaries has a small market share and there are will be at least 6 percent on December 31, 1991, and at numerous competitors for these services. As a result, least 6.5 percent within two years of consummation. consummation of this proposal would have a The Board has also reviewed the effects of this de minimis effect on existing competition for these proposal in light of Landmark's financial performance. services, and the Board concludes, in light of the facts In recent years, the financial position of Landmark has of record, that Magna's acquisition of BVI and Trust deteriorated. The quality of Landmark's assets, par- Company would not significantly affect competition in ticularly with respect to its real estate portfolio, has any relevant market. Furthermore, there is no eviresulted in significant provisions for loan losses in the dence in the record to indicate that approval of this latter part of 1990 and has had a negative impact on proposal would result in any significantly adverse earnings. The Board believes that Magna will provide effects, such as undue concentration of resources, the financial and managerial resources to strengthen decreased or unfair competition, conflicts of interests, Landmark and improve its performance. or unsound banking practices. Accordingly, the Board In this regard, the Board has carefully reviewed has determined that the balance of public interest Magna's business plan to operate the institutions on a factors it must consider under section 4(c)(8) of the combined basis. The Board believes that Magna's BHC Act is favorable and consistent with approval of business plan addresses capital ratios, earnings projec- Magna's application to acquire BVI and Trust Comtions, dividend payments and improvement in the pany. quality of assets. Magna's projections of earnings and dividends appear to be reasonable in light of operating expenses savings and corrective measures already 15. Magna has also retained the services of an outside consulting taken by Landmark and proposed by Magna. Magna company to assist finalizing the combined organization's credit administration. also projects a decrease in nonperforming assets ratio 16. The Board has carefully considered comments filed by two over a two-year period on the basis of liquidating individuals with prior business dealings with Magna's subsidiaries. One comment involves a complaint regarding the handling of an individual trust account at one of Magna's subsidiaries. The other comment involves the denial of a loan request by a Magna banking subsidiary. This complaint also alleges that a lawyer who provided 13. The Bank of New York Company, Inc., 74 Federal Reserve services to the commenter and served as a director of the banking Bulletin 257 (1988); Chemical New York Corporation, 73 Federal subsidiary may have had a conflict of interest. Magna has provided Reserve Bulletin 378 (1987); Citicorp, 72 Federal Reserve Bulletin 497 information responding to these comments. After careful consider- (1982); National City Corporation, 70 Federal Reserve Bulletin 743 ation of the comments and other facts of record, the Board concludes (1984). that the comments do not reflect so adversely upon the managerial 14. Risk-Based Capital Guidelines, 54 Federal Register 4186 (1989). resources of Magna as to warrant denial of the application. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
92 Federal Reserve Bulletin • January 1992 Based on the foregoing and other facts of record, lanta, corporations chartered pursuant to section including Applicant's commitment discussed in this Or- 25(a) of the Federal Reserve Act (12 U.S.C. § 611 der, the Board has determined that the applications et se<?.)("Edge Act"). should be, and hereby are, approved. The Board's ap- Notice of the applications, affording opportunity for proval is specifically conditioned upon continued compli- interested persons to submit comments, has been ance with its commitment, and this commitment shall published (56 Federal Register 46,182 (1991)). The constitute a condition imposed in writing by the Board in time for filing comments has expired, and the Board connection with its findings and decision. The bank ac- has considered the applications and all comments quisitions shall not be consummated before the thirtieth received in light of the factors set forth in sections calendar day following the effective date of this Order, or 3(c) and 4 of the BHC Act and section 25(a) of the later than three months after the effective date of this Federal Reserve Act. Order, unless such period is extended for good cause by On the basis of all the facts of record, including comthe Board or by the Federal Reserve Bank of St. Louis, mitments made by NCNB, the applications are approved acting pursuant to delegated authority. The determina- for the reasons set forth in the Board's Statement, which tions as to Magna's nonbanking activities are subject will be released at a later date. The Board has also denied to all of the conditions contained in the Board's requests for a public hearing on these applications. Ap- Regulation Y, including those in section 225.4(d) and proval of this proposal is specifically conditioned upon 225.23(b)(3) (12 C.F.R. 225.4(d) and 225.23(b)(3)), and to compliance with the commitments made by NCNB in the Board's authority to require such modification or connection with these applications, including committermination of the activities of a holding company or any ments to divest bank offices in certain South Carolina of its subsidiaries as the Board finds necessary to assure banking markets, and NCNB's continued compliance compliance with, or prevent evasions of, the provisions with commitments and initiatives relating to its perforand purposes of the BHC Act and the Board's regulations mance under the Community Reinvestment Act, as disand orders issued thereunder. cussed in the Board's Statement. The commitments and By order of the Board of Governors, effective conditions relied on in reaching this decision are conditions imposed in writing by the Board in connection with November 19, 1991. its findings and decision and may be enforced under applicable laws. The bank holding company acquisition Voting for this action: Chairman Greenspan and Governors Mullins, Angell, Kelley, and La Ware. shall not be consummated before the thirtieth calendar day following the effective date of this Order, or later than JENNIFER J. JOHNSON three months after the effective date of this Order, unless Associate Secretary of the Board such period is extended for good cause by the Board or by the Federal Reserve Bank of Richmond, acting pursuant NCNB Corporation to delegated authority. Charlotte, North Carolina By order of the Board of Governors, effective November 29, 1991. Order Approving the Acquisition of a Holding Company and its Banking and Nonbanking Subsidiaries Voting for this action: Chairman Greenspan and Governors Mullins, Angell, La Ware, and Lindsey. Absent and not voting: Governor Kelley. NCNB Corporation, Charlotte, North Carolina ("NCNB"), has applied under section 3 of the Bank WILLIAM W. WILES Holding Company Act (12 U.S.C. § 1842)("BHC Secretary of the Board Act") to acquire C&S/Sovran Corporation, Atlanta, Georgia, and Norfolk, Virginia ("C&S/Sovran"), and thereby to acquire the banking subsidiaries of C&S/ Sovran listed in Appendix A to this Order. NCNB has APPENDIX A also applied pursuant to section 4 of the BHC Act (12 U.S.C. § 1843) to acquire the nonbanking subsidiar- Bank Subsidiaries to be Acquired: ies of C&S/Sovran listed in Appendix B to this Order. NCNB has also applied to acquire indirectly Com- (1) The Citizens and Southern National Bank of Flormerce Trading Corporation, an export trading com- ida, Ft. Lauderdale, Florida. pany, pursuant to section 4(c)(14) of the BHC Act (2) The Citizens and Southern National Bank, Savan- (12 U.S.C. § 1843(c)(14)), and to acquire indirectly the nah, Georgia. shares of Citizens and Southern International Bank (3) The Citizens and Southern National Bank of South and Citizens and Southern International Bank of At- Carolina, Columbia, South Carolina. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 93 (4) Sovran Bank, N.A, Richmond, Virginia. (7) C&S Capital Corporation, Tucker, Georgia, which (5) Sovran Bank/Tennessee, Nashville, Tennessee. is engaged in commercial equipment leasing. (6) Sovran Bank/Kentucky, Inc., Hopkinsville, Kentucky.1 (8) C&S/Sovran Capital Management Corporation, (7) Sovran Bank/Maryland, Bethesda, Maryland. Richmond, Virginia, which is engaged in providing (8) Sovran Bank/D.C. National, Washington, D.C. investment management, portfolio management and (9) C&S/Sovran Trust Company (Georgia) National advisory services to corporate, institutional and indi- Association, Atlanta, Georgia.2 vidual investors. (10) C&S/Sovran Trust Company (South Caroli- (9) Suburban Service Corporation, Bethesda, Maryna) National Association, Columbia, South Carolina. land, which is engaged in the installation of, and (11) C&S/Sovran Trust Company (Florida) National provision of support services to, automated teller Association, Ft. Myers, Florida. machines, and the management of electronic funds transfer switches through GFS Financial Services Joint Venture, a joint venture with Giant Automatic APPENDIX B Money Systems, a wholly owned subsidiary of Giant Foods, Inc., Landover, Maryland. Nonbanking Subsidiaries to be Acquired: (10) Cash Flow, Inc., Norfolk, Virginia, which is engaged in providing electronic funds transfer services. (1) Citizens and Southern Insurance Services, Inc., (11) Southeast Switch, Inc., Maitland, Florida, which is Tucker, Georgia, which is engaged in acting as insur- engaged in providing electronic funds transfer services. ance agent or broker with respect to life, health and (12) Sovran Investment Corporation, Richmond, Virdisability insurance, personal and commercial property ginia, which is engaged in providing investment bankand casualty insurance, and fidelity and surety insur- ing, securities brokerage and investment and financial ance, all in connection with loans made by bank affili- advice, including: ates, and insurance in connection with the management (a) providing discount securities brokerage services; of the banking business and operations of C&S/Sovran. (b) buying and selling, as agent on behalf of unaffil- (2) C&S/Sovran Insurance Services, Inc., Norfolk, Vir- iated persons, options on securities issued or guarginia, which is engaged in acting as agent with respect to anteed by the U.S. Government and its agencies and life and property and casualty insurance related to exten- options on U.S. and foreign money market instrusions of credit or mortgage loan servicing. ments; (3) Sovran Insurance Inc., Gaithersburg, Maryland, (c) purchasing and selling gold and silver bullion which is engaged in general insurance agency and and gold coins solely for the account of customers; brokerage activities, including accident and health, (d) underwriting and dealing in government obligalife, personal and commercial property and casualty tions and money market instruments; insurance, and surety and fidelity insurance. (e) providing investment advice relating solely to gov- (4) The Citizens and Southern Life Insurance Com- ernment obligations and money market instruments ; pany, Tucker, Georgia, which is engaged in underwrit- (f) providing certain fiduciary services; ing credit life and credit disability insurance and acting (g) providing cash management services; as a reinsurer for certain revolving credit coverages. (h) providing certain investment advisory services; (5) Sovran Life Insurance Company, Tucker, Geor- (i) combining brokerage services with non-fee ancilgia, which is engaged in underwriting as reinsurer, lary investment advice to corporate and other insticredit life and credit disability insurance directly re- tutional customers in a limited range of nonbank lated to extensions of credit, including open end lines eligible securities; of credit by affiliated entities. (j) underwriting and dealing, to a limited extent, in (6) Sovran Leasing Corporation, Pittsburgh, Pennsyl- municipal revenue bonds (including certain indusvania, which is engaged in commercial financing; in trial development bonds), 1-4 family mortgage-remaking acquiring and servicing, for its own account or lated securities, commercial paper and consumerthe account of others, loans and leases of real and receivable-related securities; personal property; and in arranging, financing, struc- (k) acting as agent for issuers in the private placeturing and analyzing equipment leasing. ment of all types of securities, including providing related advisory services; (1) purchasing and selling all types of securities on the order of investors as riskless principal; 1. Subsidiary of CSB Acquisition Company, a wholly owned (m) purchasing and selling mortgage loans and other subsidiary of C&S/Sovran. extensions of credit in the secondary market; 2. Trust companies are all subsidiaries of C&S/Sovran Trust Com- (n) providing advice with respect to foreign expany, Inc., a wholly owned subsidiary of C&S/Sovran. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
94 Federal Reserve Bulletin • January 1992 change transactions and arranging for the execution under section 18(c) of the Federal Deposit Insurance of foreign exchange transactions; Act (12 U.S.C. § 1828(c)) (the "Bank Merger Act") to (o) providing financial advice, including providing purchase certain assets from and assume certain liavaluations, fairness opinions and advice in connec- bilities of the LaPaz Branch of NorCen Bank, Culver, tion with merger, acquisition, divestiture and similar Indiana ("LaPaz Branch"). 1st Source also has aptransactions; plied to establish a branch at the site of the LaPaz (p) providing advice regarding loan syndications Branch pursuant to section 9 of the Federal Reserve and strategies involving interest rate and currency Act (12 U.S.C. § 321) and for permission to make an swaps, interest rate caps, floors and collars and additional investment in bank premises pursuant to options on such instruments; and section 24A of the Federal Reserve Act. (q) acting as agent or broker with respect to inter- Notice of the applications, affording interested perests in loan syndications, interest rate and currency sons an opportunity to submit comments, has been swaps, interest rate caps, floors and collars, and given in accordance with the Bank Merger Act and the options on such instruments. Board's Rules of Procedure (12 C.F.R. 262.3(b)). As (13) C&S/Sovran Credit Corporation, Tucker, Georgia, required by the Bank Merger Act, reports on the which is engaged in making, acquiring and servicing for its competitive effects of the merger were requested from own account, or for the account of others, loans secured the United States Attorney General, the Office of the primarily by second mortgages on real property; making Comptroller of the Currency, and the Federal Deposit direct consumer installment loans, purchasing consumer Insurance Corporation. The time for filing comments installment sales finance contracts, and extending direct has expired, and the Board has considered the appliloans to dealers through the financing of inventory and cations and all the comments received in light of the working capital loans; and acting as agent in the sale of factors set forth in the Bank Merger Act credit life insurance and accident and health insurance in (12 U.S.C. § 1828(c)(5)) and in section 9 of the Federal connection with such loans. Reserve Act. (14) VNB Capital Corporation, Norfolk, Virginia, 1st Source is the 11th largest commercial banking which is engaged in making or acquiring new loans or organization in Indiana, controlling deposits of apother extensions of credit involving construction fi- proximately $980.6 million, representing approxinancing and mortgage lending on residential, multi- mately 2.1 percent of the total deposits in commercial family and commercial real estate. banking organizations in the state.1 LaPaz Branch (15) Sovran Mortgage Corporation, Richmond, Vir- controls deposits of approximately $25.6 million, repginia, which is engaged in making, acquiring or servic- resenting less than 1 percent of total deposits in ing, for its own account or the account of others, loans commercial banks in the state.2 Upon consummation secured by mortgages on real property and acting as of this proposal, 1st Source would remain the 11th agent for the sale of credit life insurance, credit largest commercial banking organization in Indiana, accident and health insurance, mortgage redemption controlling deposits of approximately $1.0 billion, repand mortgage accident and health insurance directly resenting 2.3 percent of total deposits in commercial related to such extensions of credit. banking organizations in the state. Based on the facts (16) Citizens and Southern Mortgage Corporation, of record, the Board believes that consummation of Tucker, Georgia, which is engaged in making, acquir- the proposal would not have a significantly adverse ing and servicing, for its own account or the account of effect on the concentration of banking resources in others, loans or other extensions of credit secured Indiana. primarily by first mortgages on real property. 1st Source and the LaPaz Branch compete directly in the Marshall County, Indiana banking market.3 1st Orders Issued Under Bank Merger Act Source is the largest of six commercial banking and thrift organizations (together, "depository institu- 1st Source Bank tions") in the market, controlling deposits of $145.8 South Bend, Indiana million, representing 36.2 percent of total deposits in Order Approving Acquisition of Certain Assets and Assumption of Certain Liabilities of a Bank, the 1. Data are as of June 30, 1990. Establishment of a Branch, and Additional 2. The LaPaz Branch is a branch of NorCen Bank, Culver, Indiana. NorCen Bank is a subsidiary of NCB Corporation, Culver, Indiana, Investment in Bank Premises which is the 67th largest commercial banking organization in Indiana, controlling $94.6 million in deposits, representing less than 1 percent of total deposits in commercial banking organizations in the state. 1st Source Bank, South Bend, Indiana ("1st Source"), 3. The Marshall County, Indiana banking market is approximated a member bank, has applied for the Board's approval by Marshall County, Indiana, excluding Tippecanoe Township. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 95 depository institutions in the market.4 The LaPaz on these and all of the other facts of record in this case, Branch of NorCen Bank controls deposits of $25.6 the Board has determined that consummation of this million, representing approximately 6.3 percent of proposal would not have a significantly adverse effect total deposits in depository institutions in the market. on existing competition in the Marshall County, Indi- NorCen Bank currently is the second largest depos- ana banking market.7 itory institution in the Marshall County, Indiana bank- The financial and managerial resources and future ing market, with four offices controlling deposits of prospects of 1st Source and LaPaz Branch are consis- $93.4 million, representing 22.7 percent of total market tent with approval. Considerations relating to the deposits in depository institutions. The proposed convenience and needs of the community to be served transaction represents part of a multiple branch dives- also are consistent with approval.8 titure undertaken by NorCen Bank in the Marshall 1st Source also has applied under section 9 of the County, Indiana banking market. Following this dives- Federal Reserve Act (12 U.S.C. § 321 et seq.) to estiture plan, NorCen Bank would continue to operate in tablish a branch at the present site of the LaPaz the Marshall County banking market through retention Branch. The Board has considered the factors it is of its home office in the market. NorCen Bank has required to consider in applications for establishing already negotiated the sale of two branches in this branches and concludes that the financial condition of market to Lake City Bank, Warsaw, Indiana ("Lake 1st Source, the general character of its management, City"), a banking organization that is not currently and the proposed exercise of corporate powers are operating in the market. Lake City recently received consistent with approval and the purposes of section 9 approval from the Federal Deposit Insurance Corpo- of the Federal Reserve Act. ration ("FDIC") to purchase the assets and assume 1st Source also has requested permission under the liabilities of these NorCen Bank branches.5 section 24A of the Federal Reserve Act to make an Consummation of the proposal by Lake City is additional investment in bank premises in connection scheduled to occur prior to the time that the 1st Source with this proposal. The additional investment will be transaction would be permitted to occur. After taking used to acquire the LaPaz Branch premises. The note of the Lake City acquisition, the number of Board concludes that 1st Source's additional investcompetitors in the market would increase, to seven. ment in bank premises will support 1st Source's ac- On this basis, upon consummation of the 1st Source quisition of the LaPaz Branch and is consistent with proposal, NorCen Bank would become the fourth approval. largest depository institution in the market, controlling deposits of $46.8 million, representing 11.3 percent of total deposits in depository institutions in the market. Lake City would become the fifth largest depository points. The Justice Department has stated that the higher than normal HHI thresholds for screening bank mergers and acquisitions for institution in the market, controlling deposits of $21.0 anticompetitive effects implicitly recognizes the competitive effect of million, representing 5.2 percent of total deposits in limited-purpose lenders and other non-depository financial entities. depository institutions in the market. 1st Source would The Department of Justice has been invited to submit comments regarding this proposal and has expressed no objection to this procontrol $171.4 million in deposits, representing 42.5 posal. percent of total deposits in depository institutions in 7. The Board also has considered the effect upon competition in the Marshall County, Indiana banking market in the event that the Lake the market. The Herfindahl-Hirschman Index City Bank acquisitions do not occur. Assuming that NorCen Bank ("HHI") in the market would increase by 125 points to retained the two branches that are to be sold to Lake City, upon the 2614, which is below the threshold levels contained in sale of the LaPaz Branch to 1st Source, NorCen Bank would be the the Department of Justice Merger Guidelines.6 Based third largest depository institution in the market, controlling deposits of $67.8 million, representing 16.8 percent of total market deposits in depository institutions. As a result of the 1st Source purchase, the HHI would increase by 247 points, to a level of 2735. All six depository institutions, including NorCen Bank, currently in the 4. Market share data are based on calculations in which the deposits market would remain in the market following the transaction. Based of thrift institutions are included at 50 percent. The Board previously on the facts of record, the Board believes that consummation of this has indicated that thrift institutions have become, or have the poten- proposal under the circumstances described here would not have a tial to become, major competitors of commercial banks. See Midwest significantly adverse effect upon competition in the Marshall County, Financial Group, 75 Federal Reserve Bulletin 386 (1989); National Indiana banking market. City Corporation, 70 Federal Reserve Bulletin 743 (1984). 8. The Board has carefully considered comments filed by two 5. The two NorCen branches to be acquired by Lake City are consumers who are presently customers of the LaPaz Branch. The located in Argos and Bremen, Indiana. commenters object to this transaction because they are concerned that 6. Under the revised Department of Justice Merger Guidelines, 49 the LaPaz Branch would lose its air of friendliness and cooperation if Federal Register 26,823 (June 29, 1984), a market in which the it were acquired by 1st Source. In addition, the commenters were post-merger HHI is above 1800 is considered highly concentrated. critical of 1st Source with respect to a family member's business The Department of Justice has informed the Board that a bank merger relationship with the bank. Upon careful consideration of the comor acquisition generally will not be challenged (in the absence of other ments, 1st Source's response thereto, and other facts in the record, factors indicating anticompetitive effects) unless the post-merger HHI the Board has concluded that the comments do not warrant denial of is at least 1800 and the merger increases the HHI by at least 200 the applications. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
96 Federal Reserve Bulletin • January 1992 Based on the foregoing and other facts of record, the Board is required, under the Community Reinvest- Board has determined that the applications should be, ment Act (12 U.S.C. § 2901 et seq.) ("CRA"), to and hereby are, approved. This transaction shall not consider the institution's record of serving the credit be consummated before the thirtieth calendar day needs of the community, including low- and moderatefollowing the effective date of this Order, or later than income neighborhoods. The CRA requires the federal three months after the effective date of this Order, financial supervisory agencies to encourage financial unless such period is extended for good cause by the institutions to help meet the credit needs of the local Board or by the Federal Reserve Bank of Chicago, communities in which they operate consistent with the acting pursuant to delegated authority. safe and sound operation of such institutions. To By order of the Board of Governors, effective accomplish this end, the CRA requires the appropriate November 21, 1991. federal supervisory authority to "assess an institution's record of meeting the credit needs of its entire community, including low- and moderate-income Voting for this action: Chairman Greenspan and Governors Angell, Kelley, and La Ware. Absent and not voting: Gover- neighborhoods, consistent with the safe and sound nor Mullins. operation of the institution."1 In this regard, the Board has considered comments JENNIFER J. JOHNSON filed by the Main Street Business Association, Colum- Associate Secretary of the Board bus, Ohio, and the Coalition of Neighborhoods, Cincinnati, Ohio (collectively, "Protestants"). Protes- Fifth Third Bank tants have raised several CRA issues that were Cincinnati, Ohio recently considered by the Board in connection with two applications involving Bancorp and Banks.2 Prot- Fifth Third Bank estants have also alleged that Fifth Third Cincinnati's Columbus, Ohio marketing efforts to the black community are inadequate.3 Order Approving the Establishment of Branches The Board has carefully reviewed the CRA performance record of Banks, as well as Protestants' com- Fifth Third Bank, Cincinnati, Ohio ("Fifth Third Cin- ments, in light of the CRA, the Board's regulations, cinnati"), has applied, pursuant to section 9 of the and the Statement of the Federal Financial Supervi- Federal Reserve Act (12 U.S.C. § 321 et seq.) sory Agencies Regarding the Community Reinvest- ("FRA"), to establish 9 Customer Bank Communica- ment Act ("Agency CRA Statement").4 The Agency tion Terminals ("CBCTs") in Ohio at locations listed CRA Statement provides that a CRA examination is an in the Appendix. Fifth Third Bank, Columbus, Ohio important and often controlling factor particularly ("Fifth Third Columbus"), also has applied, pursuant where, as in this case, many of the specific issues to section 9 of the FRA, to establish 3 CBCTs in Ohio at locations listed in the Appendix. Notice of these applications, affording interested 1. 12 U.S.C. § 2901. persons an opportunity to submit comments, has been 2. In particular, Protestants claim that: duly published. The time for filing comments has (1) Banks have inadequately supported CRA-related programs, expired, and the Board has considered the applications including the Cincinnati Minority Enterprise Small Business Investment Company; and all comments received in light of the factors (2) Banks have not met the needs of black businesses and small contained in section 9 of the FRA. businesses; (3) Fifth Third Columbus does not have a branch in Columbus's Fifth Third Cincinnati and Fifth Third Columbus inner city black community; (collectively, "Banks") are both subsidiaries of Fifth (4) Banks failed to employ minorities at Bancorp and Banks; and Third Bancorp, Cincinnati, Ohio ("Bancorp"), which (5) Banks inadequately contributed to non-profit organizations. 3. In addition, Protestants have noted that Fifth Third Columbus operates subsidiary banks in Ohio, Indiana, and Kenhas not established a community development corporation. Under the tucky. Fifth Third Cincinnati, Bancorp's lead bank, Agency CRA Statement, financial institutions have substantial leeway has its main office in Cincinnati and operates branches in developing specific policies and programs to meet their CRA responsibilities. Although a community development corporation in Hamilton, Butler, Montgomery and Cuyahoga ("CDC") is one step that institutions with the most effective programs Counties, all in Ohio. Fifth Third Columbus has its for meeting their CRA responsibilities have taken, neither the Board nor the Agency CRA Statement requires an institution to establish or main office and branches in Columbus, and also two own a CDC as part of the institution's CRA program. See also branches in Fayette County, Ohio. discussion of Banks' CRA-related programs in Fifth Third Bancorp, In reviewing an application for a deposit facility, 11 Federal Reserve Bulletin 744, 747-48 (1991) (Order dated July 12, 1991, "July Order") and Fifth Third Bank, 11 Federal Reserve Bulletin including the establishment of a domestic branch or 347, 349-50 (1991) (Order dated March 22, 1991, "March Order"). other facility with the ability to accept deposits, the 4. 54 Federal Register 13,742 (1989). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 97 raised by the protests were incorporated in the reviews select low- and moderate-income neighborhoods, inof Banks. cluding predominately black neighborhoods. In this case, Banks have received a satisfactory The "Get the Right Loan, Right Now" installment rating from their primary regulator in the most recent mortgage loan campaign conducted by Banks was iniexamination of their CRA performance. In addition, tiated during the first quarter of 1991 and continued the Board recently reviewed the CRA programs at through June 1991 at Fifth Third Cincinnati. Fifth Third Banks, as well as comments made by one of the Columbus plans to continue marketing this program Protestants regarding those programs, in connection through year end. As part of this program, billboards with two previous applications and determined that were placed in 25 locations in urban areas in Cincinnati, those programs, on balance, were satisfactory.5 The including 9 billboards in predominately minority com- Board has also considered Protestants' comments in munities and 4 billboards in integrated communities.7 light of two recent quarterly reports filed by Banks Advertisements were also placed on buses whose regarding their CRA programs. These two quarterly routes covered low- and moderate-income neighborreports indicate that Banks have taken steps to ad- hoods.8 The advertisements for this campaign were dress weaknesses in that record. augmented by a Phone-A-Loan number for easy ac- In particular, the quarterly reports for Banks show cess. Fifth Third Cincinnati made 13 percent of its that Banks have engaged in several major loan cam- Phone-A-Loan loans to low- and moderate-income arpaigns this year directed at low- and moderate-income eas. Banks also continue to promote their services areas and the black community. Banks initiated a through community calls, including to individuals in "Where a Dream Home Comes True" mortgage loan low- and moderate-income neighborhoods and to small advertising campaign during the second quarter of this businesses. year using posters, statement stuffers, counter cards, For the reasons discussed above and in the March newspaper, radio, as well as billboards located in low- and July Orders, the Board believes that, on balance, and moderate-income areas to promote this cam- convenience and needs considerations are consistent paign.6 Banks have also continued marketing their with approval of these applications.9 The Board ex- Good Neighbor Mortgage Loan Program, which was pects Banks to continue their progress in addressing originally directed to individuals with income under CRA matters discussed in this and in previous orders $35,000. Fifth Third Cincinnati has committed $1.5 and to continue reporting quarterly to the Federal million to the second tier of this program, which is Reserve Bank of Cleveland. The Reserve Bank will directed towards individuals whose income is below continue to closely monitor this performance. $20,000. During the third quarter of this year, Fifth The Board also concludes that the financial condi- Third Cincinnati made 11 loans under this program and tions of Banks, the general character of their manageconducted five homebuying seminars for the program ments, and the proposed exercise of corporate powers in Cincinnati as well as several seminars in northern are consistent with approval and the purposes of Kentucky. Fifth Third Cincinnati is planning a direct- section 9 of the FRA. mail mortgage loan campaign targeted to residents of Based on all the foregoing and other facts of record, the Board has determined that the applications should be, and hereby are, approved. 5. July Order, at 745-49; March Order, at 348-51. See also letter dated August 9, 1991, denying the reconsideration request of the Coalition of Neighborhoods. In those orders and letters, the Board discussed Fifth Third Cincinnati's efforts to assist minority businesses 7. Billboards were also placed in 15 locations in Dayton, as well as through its Minority Business Development Committee. July Order, in the City of Columbus and surrounding areas. at 747. The Board also noted that four of the 18 branches of Fifth Third 8. The campaign was promoted in Cleveland through the use of Columbus located in the Columbus Primary Metropolitan Statistical brochures and other in-bank promotional materials. Fifth Third Co- Area are in low- and moderate-income areas and six are in middle- lumbus made 53 loans to individuals under this program. income areas. July Order, at 748 n.30. Two of the branches approved 58 in the July Order were located in low- and moderate-income areas. 9. Protestants have requested that the Board hold a public hearing July Order, at 748. This application includes a request by Fifth Third or meeting to assess further facts surrounding Banks' CRA perfor- Columbus and Fifth Third Cincinnati each to place one CBCT in low- mance. Generally under the Board's rules, the Board may, in its and moderate-income neighborhoods served by these banks. Regard- discretion, hold a public hearing or meeting on an application to clarify ing minority employment, the Board has stated that, while it fully factual issues related to the application and to provide an opportunity supports affirmative programs designed to promote equal opportunity for testimony, if appropriate. 12 U.S.C. §§ 262.3(e) and 262.25(d). in every aspect of a bank's personnel and managerial policies, the The Board has carefully considered these requests. In the Board's Board believes that alleged deficiencies in Banks' employment of view, the parties have had ample opportunity to present submissions, minorities are beyond the scope of factors assessed under the CRA. and Protestants have submitted written comments that have been March Order, at 348 n.7. In the March Order, the Board also considered by the Board. In light of these facts, the Board has considered Protestant's contention that Banks have made an inade- determined that a public meeting or hearing is not necessary to clarify quate amount of charitable contributions. March Order, at 349 n.14. the factual record in these applications, or otherwise warranted in this 6. Marketing for this campaign is continuing at Fifth Third Colum- case. Accordingly, the requests for a public meeting or hearing on bus. these applications are hereby denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
98 Federal Reserve Bulletin • January 1992 By order of the Board of Governors, effective (3) 10500 Montgomery Road, Cincinnati, Ohio; November 5, 1991. (4) 10132 Business Center Drive, Cincinnati, Ohio; (5) 5445 Ridge Road, Cincinnati, Ohio; Voting for this action: Chairman Greenspan and Governors (6) 1023 South Main Street, Centerville, Ohio; Mullins, Angell, Kelley, and La Ware. (7) 9200 North Main Street, Dayton, Ohio; (8) 3822 Colonel Glenn Highway, Fairborn, Ohio; and JENNIFER J. JOHNSON (9) 3628 Mayfield Road, Cleveland Heights, Ohio. Associate Secretary of the Board Fifth Third Columbus will establish the following Appendix CBCTs: Fifth Third Cincinnati will establish the following (1) 5151 West Broad Street, Columbus, Ohio; CBCTs: (2) 1375 Chambers Road, Columbus, Ohio; and (1) 1864 Seymour Avenue, Cincinnati, Ohio; (3) 548 Clinton Avenue, Washington Court House, (2) 619 Oak Street, Cincinnati, Ohio; Ohio. 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 Advance Bancorp, Inc., Homewood Federal South Chicago Bank, October 31, 1991 Chicago, Illinois Savings and Loan Chicago, Illinois Association, Homewood, Illinois 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 Applicant(s) Bank(s) Effective Date First Commercial Corporation, Farmers and Merchants Bank November 29, 1991 Little Rock, Arkansas Rogers, Arkansas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 99 Sections 3 and 4 Effective Applicant(s) Bank(s) Date FirstBank Holding Company Employee FirstBank Holding Company of November 26, 1991 Stock Ownership Plan, Colorado, Lake wood, Colorado Lake wood, Colorado 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 Banc One Corporation, First Illinois Corporation, Cleveland November 5, 1991 Columbus, Ohio Evanston, Illinois BW3 Bancorporation, W.D.K. Bancorporation, Chicago November 4, 1991 West Des Moines, Iowa Palmer, Iowa Centura Banks, Inc., Centura Interim Bank, Richmond November 1, 1991 Rocky Mount, North Carolina Rutherfordton, North Carolina Country Bancorporation, Peoples Trust and Savings Chicago November 4, 1991 Crawfordsville, Iowa Bank, Riverside, Iowa Crawfordsville Insurance Agency, Inc., Crawfordsville, Iowa Center Point Banshares Corp., Crawfordsville, Iowa CSB Bancorp Inc., The Commercial and Cleveland November 14, 1991 Millersburg, Ohio Savings Bank of Millersburg, Millersburg, Ohio Eagle Financial Services, Inc., Bank of Clarke County, Richmond November 15, 1991 Berryville, Virginia Berry ville, Virginia Farmers National Bancorp, Inc., The Farmers National Philadelphia November 20, 1991 Newville, Pennsylvania Bank of Newville, Newville, Pennsylvania First Cecilian Bancorp, Inc., The Cecilian Bank, St. Louis November 6, 1991 Cecilia, Kentucky Cecilia, Kentucky First Evergreen Corporation, Oak Lawn Trust and Chicago November 21, 1991 Evergreen Park, Illinois Savings Bank, Oak Lawn, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
100 Federal Reserve Bulletin • January 1992 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date First Financial Corporation, First Bank and Trust, Atlanta October 17, 1991 Mount Juliet, Tennessee Mount Juliet, Tennessee First Financial Corporation of First State Bank of Kansas City November 1, 1991 Idabel, Idabel, Idabel, Oklahoma Idabel, Oklahoma First National Johnson First National Bank of Kansas City November 13, 1991 Bancshares, Inc., Johnson, Johnson, Nebraska Johnson, Nebraska Flower Mound Bancshares, Inc., Security Bank, Dallas October 18, 1991 Flower Mound, Texas Flower Mound, Texas Granville Bancshares, Inc., The Whaples & Farmers Chicago November 19, 1991 Granville, Illinois State Bank, Neponset, Illinois Hardwick Holding Company, Peoples Bartow Atlanta October 23, 1991 Dalton, Georgia Corporation, Cartersville, Georgia Heartland Bancshares, Inc., First Community National Chicago November 6, 1991 Lenox, Iowa Bank, Corning, Iowa Heritage Financial Services, Inc. Country Club Chicago November 4, 1991 Blue Island, Illinois Bancorporation, Inc., Country Club Hills, Illinois Lake Forest Bancorp, Inc., Lake Forest Bank and Chicago November 15, 1991 Lake Forest, Illinois Trust Company, Lake Forest, Illinois Mercantile Bancorporation, Inc. Old National Bancshares, St. Louis October 18, 1991 St. Louis, Missouri Inc., Centralia, Illinois Mid Penn Bancorp, Inc., Mid Penn Bank, Philadelphia November 20, 1991 Millersburg, Pennsylvania Millersburg, Pennsylvania Oak Bancorporation, Oakland State Bank, Chicago October 25, 1991 Red Oak, Iowa Oakland, Iowa Ponca Bancshares, Inc., Security Bank & Trust Kansas City November 19, 1991 Ponca City, Oklahoma Company of Ponca City, Ponca City, Oklahoma Romy Hammes Bancorp, Inc., Peoples Bank of Chicago November 13, 1991 South Bend, Indiana Marycrest, Bradley, Illinois Shawnee Bancshares, Inc., Downstate National Bank St. Louis November 1, 1991 Grand Tower, Illinois of Grand Tower, Grand Tower, Illinois Standard Bancorporation, Inc., Standard Bank and Trust, Kansas City October 21, 1991 Lincoln, Nebraska Independence, Missouri Tate Financial Corporation, Senatobia Bank, St. Louis October 18, 1991 Coldwater, Mississippi Senatobia, Mississippi Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 101 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date United Bank Corporation, United Bank of Griffin, Atlanta November 6, 1991 Barnes ville, Georgia Griffin, Georgia Worthen Banking Corporation, First National Bank of St. Louis November 1, 1991 Little Rock, Arkansas Fayetteville, Fayette ville, Arkansas Section 4 Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date Alpha Financial Group, Inc., Dace Insurance Agency, Chicago November 18, 1991 Minonk, Illinois Toluca, Illinois Bob Bockler Insurance Agency, Washburn, Illinois Centura Banks, Inc., Citizens Federal Savings Richmond November 1, 1991 Rocky Mount, North Carolina and Loan Association of Rutherfordton, Rutherfordton, North Carolina Comerica Incorporated, Midlantic National Bank Chicago November 12, 1991 Detroit, Michigan & Trust Co./Florida, Fort Lauderdale, Florida First Alabama Bancshares, Inc., Lake Federal Savings Atlanta November 7, 1991 Montgomery, Alabama Bank, Pell City, Alabama First Bancorp, Inc., Brunner Insurance Minneapolis October 25, 1991 Huron, South Dakota Agency, Nisland, South Dakota Stapp Insurance Agency, Newell, South Dakota F.N.B. Corporation, Nittany Consumer Cleveland November 5, 1991 Hermitage, Pennsylvania Discount Company, State College, Pennsylvania Norwest Corporation, Allied Crop Agency, Inc., Minneapolis November 12, 1991 Minneapolis, Minnesota Des Moines, Iowa Norwest Corporation, Southern Mortgage & Minneapolis November 18, 1991 Minneapolis, Minnesota Finance Corporation, Las Vegas, New Mexico Norwest Corporation, Termplan, Inc., Minneapolis October 28, 1991 Minneapolis, Minnesota Covington, Louisiana The Sumitomo Bank, Limited, Sumitomo Bank Capital San Francisco November 15, 1991 New York, New York Markets, Inc., New York, New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
102 Federal Reserve Bulletin • January 1992 Section 4—Continued Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date United Security Bancorporation, JLM Insurance Agency, San Francisco November 13, 1991 Chewelah, Washington Colville, Washington Ron Lee Insurance Agency, Chewelah, Washington Sections 3 and 4 Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date Haugo Bancshares, Inc., Valley Bank, Minneapolis November 20, 1991 Elk Point, South Dakota Elk Point, South Dakota Haugo Investment Company, Inc., Elk Point, South Dakota Stearns Financial Services, Inc., Howard W. Reiter Minneapolis November 19, 1991 Albany, Minnesota Investment Company, Canby, Minnesota West One Bancorp, Washington Federal San Francisco November 1, 1991 Boise, Idaho Savings Bank, Hillsboro, Oregon Ward Cook, Inc., Portland, Oregon West One Bank, Oregon, S.B., Portland, Oregon APPLICATIONS APPROVED UNDER BANK MERGER ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Effective Applicant(s) Bank(s) Date Manufacturers and Traders Trust The First National Bank of Highland, November 27, 1991 Company, Newburgh, New York Buffalo, New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 103 APPLICATIONS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Reserve Effective Applicant(s) Bank(s) Bank Date The Auburn State Bank, Citizens State Bank, Chicago November 18, 1991 Auburn, Indiana Waterloo, Indiana Centura Interim Bank, Centura Bank, Richmond November 1, 1991 Rutherfordton, North Carolina Rocky Mount, North Carolina Clifton Trust Bank, The Commercial Bank, Richmond November 13, 1991 Cockeysville, Maryland Bel Air, Maryland The Commercial and Savings Millersburg Interim Bank, Cleveland November 14, 1991 Bank, Millersburg, Ohio Millersburg, Ohio First State Bancorporation, Inc., New Mexico Bank Kansas City November 15, 1991 Taos, New Mexico Corporation, Inc., Albuquerque, New Mexico First State Bank of Taos, National Bank of Kansas City November 15, 1991 Taos, New Mexico Albuquerque, Albuquerque, New Mexico SouthTrust Bank of Pinellas Florida Bank of Atlanta October 30, 1991 County, Commerce, St. Petersburg, Florida Clearwater, Florida United Missouri Bank of Paris, United Missouri Bank St. Louis October 31, 1991 Paris, Missouri Northeast, Monroe City, Missouri PENDING CASES INVOLVING THE BOARD OF adjudication of civil money penalty assessment by GOVERNORS the Board. On October 15, the court issued a preliminary injunction restraining the transfer or disposition of the individual's assets. This list of pending cases does not include suits Board of Governors v. Ghaith R. Pharaon, No. against the Federal Reserve Banks in which the Board 91-CIV-6250 (S.D. New York, filed September 17, of Governors is not named a party. 1991. Action to freeze assets of individual pending administrative adjudication of civil money penalty First Interstate BancSystem of Montana, Inc. v. assessment by the Board. On September 17, the Board of Governors, No. 91-1525 (D.C. Cir., filed court issued an order temporarily restraining November 1, 1991). Petition for review of Board's the transfer or disposition of the individual's asorder denying on Community Reinvestment Act sets. In re Smouha, No. 91-B-13569 (Bkr. S.D. grounds the petitioner's application under section 3 New York, filed August 2, 1991). Ancillary proof the Bank Holding Company Act to merge with ceeding under the U.S. Bankruptcy Code brought Commerce BancShares of Wyoming, Inc. by provisional liquidators of BCCI Holdings (Lux- Board of Governors v. Kemal Shoaib, No. CV 91-5152 embourg) S.A. and affiliated companies. On Au- (C.D. California, filed September 24, 1991). Action gust 15, 1991, the bankruptcy court issued a temto freeze assets of individual pending administrative porary restraining order staying certain judicial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
104 Federal Reserve Bulletin • January 1992 and administrative actions, which has been contin- Fifth Circuit vacated the district court's order enued by consent. joining the Board from proceeding with enforcement Hanson v. Greenspan, No. 91-1599 (D.D.C., filed June actions based on section 23A of the Federal Reserve 28, 1991). Suit for return of funds and financial instru- Act, but upheld the district court's order enjoining ments allegedly owned by plaintiffs. The Board's mo- such actions based on the Board's source-oftion to dismiss was filed on October 29; the plaintiffs strength doctrine. 900 F.2d 852 (5th Cir. 1990). On filed an opposition on November 12, 1991. March 4, 1991, the Supreme Court granted the Fields v. Board of Governors, No. 3:91CV069 (N.D. parties' cross-petitions for certiorari, Nos. 90-913, Ohio, filed February 5, 1991). Appeal of denial of 90-914. On October 2, 1991, the Supreme Court request for information under the Freedom of Infor- heard argument in the case. mation Act. MCorp v. Board of Governors, No. CA3-88-2693 Citicorp v. Board of Governors, No. 90-4124 (2d (N.D. Texas, filed October 10, 1988). Application Circuit, filed October 4, 1990). Petition for review of for injunction to set aside temporary cease and Board order requiring Citicorp to terminate certain desist orders. Stayed pending outcome of MCorp v. insurance activities conducted pursuant to Delaware Board of Governors, 900 F.2d 852 (5th Cir. 1990). law by an indirect nonbank subsidiary. On June 10, 1991, the court of appeals granted the petition and vacated the Board's order. The Independent Insur- WRITTEN AGREEMENTS APPROVED BY FEDERAL ance Agents of America and others filed a petition RESERVE BANKS for certiorari on October 8, 1991. Consumers Union of U.S., Inc. v. Board of Gover- Resource Bank nors, No. 90-5186 (D.C. Circuit, filed June 29, Virginia Beach, Virginia 1990). Appeal of District Court decision upholding amendments to Regulation Z implementing the The Federal Reserve Board announced on Home Equity Loan Consumer Protection Act. On November 12, 1991, the execution of a Written July 12, 1991, the court of appeals affirmed the Agreement among the Federal Reserve Bank of majority of district court decision upholding the Richmond, the Bureau of Financial Institutions of Board's regulations, but remanded two issues to the the Commonwealth of Virginia, Richmond, Virginia, Board for further action. and the Resource Bank, Virginia Beach, Virginia. Synovus Financial Corp. v. Board of Governors, No. 89-1394 (D.C. Circuit, filed June 21, 1989). Petition Westport Bancorp, Inc. for review of Board order permitting relocation of a Westport, Connecticut bank holding company's national bank subsidiary from Alabama to Georgia. Awaiting decision. The Federal Reserve Board announced on MCorp v. Board of Governors, No. 89-2816 (5th November 27, 1991, the execution of a Written Circuit, filed May 2, 1989). Appeal of preliminary Agreement between the Federal Reserve Bank of injunction against the Board enjoining pending and New York, the Banking Commissioner State of Confuture enforcement actions against a bank holding necticut, Hartford, Connecticut, and Westport Bancompany now in bankruptcy. On May 15, 1990, the corp, Inc., Westport, Connecticut. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
105 Membership of the Board of Governors of the Federal Reserve System, 1913-92 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
106 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 Lawrence B. Lindsey Richmond Nov. 26, 1991 Susan M. Phillips Chicago Dec. 2, 1991 Chairmen4 Vice Chairmen? 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
Al Financial and Business Statistics CONTENTS WEEKLY REPORTING COMMERCIAL BANKS Domestic Financial Statistics Assets and liabilities A20 All reporting banks A22 Branches and agencies of foreign banks MONEY STOCK AND BANK CREDIT FINANCIAL MARKETS A4 Reserves, money stock, liquid assets, and debt measures A23 Commercial paper and bankers dollar A5 Reserves of depository institutions, Reserve Bank acceptances outstanding credit A23 Prime rate charged by banks on short-term A6 Reserves and borrowings - Depository business loans institutions A24 Interest rates—money and capital markets A7 Selected borrowings in immediately available A25 Stock market—Selected statistics funds—Large member banks A26 Selected financial institutions—Selected assets and liabilities POUCY INSTRUMENTS FEDERAL FINANCE A8 Federal Reserve Bank interest rates A9 Reserve requirements of depository institutions A26 Federal fiscal and financing operations A10 Federal Reserve open market transactions A27 U.S. budget receipts and outlays A28 Federal debt subject to statutory limitation A28 Gross public debt of U. S. Treasury—Types FEDERAL RESERVE BANKS and ownership A29 U.S. government securities All Condition and Federal Reserve note statements dealers—Transactions A12 Maturity distribution of loan and security A30 U.S. government securities dealers-Positions holdings and financing A31 Federal and federally sponsored credit agencies—Debt outstanding MONETARY AND CREDIT AGGREGATES A13 Aggregate reserves of depository institutions SECURITIES MARKETS AND and monetary base CORPORATE FINANCE A14 Money stock, liquid assets, and debt measures A16 Bank debits and deposit turnover A32 New security issues—State and local A17 Loans and securities-All commercial banks governments and corporations A33 Open-end investment companies - Net sales and asset position COMMERCIAL BANKING INSTITUTIONS A33 Corporate profits and their distribution A33 Total nonfarm business expenditures on new A18 Major nondeposit funds plant and equipment A19 Assets and liabilities, last-Wednesday-of-month A34 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 • January 1992 Domestic Financial Statistics — Continued A55 Foreign branches of U. S. banks—Balance sheet data A57 Selected U.S. liabilities to foreign official REAL ESTATE institutions A3 5 Mortgage markets A36 Mortgage debt outstanding REPORTED BY BANKS IN THE UNITED STATES CONSUMER INSTALLMENT CREDIT A57 Liabilities to and claims on foreigners A37 Total outstanding and net change A58 Liabilities to foreigners A3 8 Terms A60 Banks' own claims on foreigners A61 Banks' own and domestic customers' claims on foreigners A61 Banks' own claims on unaffiliated foreigners FLOW OF FUNDS A62 Claims on foreign countries—Combined domestic offices and foreign branches A39 Funds raised in U.S. credit markets A41 Direct and indirect sources of funds to credit markets REPORTED BYNONBANKING BUSINESS A42 Summary of credit market debt outstanding A43 Summary of credit market claims, by holder ENTERPRISES IN THE UNITED STATES A63 Liabilities to unaffiliated foreigners Domestic Nonfinancial Statistics A64 Claims on unaffiliated foreigners SELECTED MEASURES SECURITIES HOLDINGS AND TRANSACTIONS A44 Nonfinancial business activity-Selected A65 Foreign transactions in securities measures A66 Marketable U.S. Treasury bonds and A45 Labor force, employment, and unemployment notes —Foreign transactions A46 Output, capacity, and capacity utilization A47 Industrial production—Indexes and gross value A49 Housing and construction INTEREST AND EXCHANGE RATES A50 Consumer and producer prices A51 Gross national product and income A67 Discount rates of foreign central banks A52 Personal income and saving A67 Foreign short-term interest rates A68 Foreign exchange rates International Statistics A69 Guide to Tabular Presentation, Statistical Releases, and Special SUMMARY STATISTICS Tables A53 U.S. international transactions-Summary A54 U.S. foreign trade SPECIAL TABLE A54 U.S. reserve assets A54 Foreign official assets held at Federal Reserve A70 Pro forma balance sheet and income statements Banks for priced service operations, September 30,1991 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS c Corrected GNP Gross national product e Estimated HUD Department of Housing and Urban P Preliminary Development r Revised (Notation appears on column heading IMF International Monetary Fund when about half of die figures in that column are 10 Interest only changed.) IPCs Individuals, partnerships, and corporations * Amounts insignificant in terms of the last decimal IRA Individual retirement account place shown in the table (for example, less than MMDA Money market deposit account 500,000 when the smallest unit given is millions) n.a. Not available 0 Calculated to be zero n.e.c. Not elsewhere classified Cell not applicable NOW Negotiable order of withdrawal ATS Automatic transfer service OCD Other checkable deposit CD Certificate of deposit OPEC Organization of Petroleum Exporting Countries CMO Collateralized mortgage obligation OTS Office of Thrift Supervision FFB Federal Financing Bank PO Principal only FHA Federal Housing Administration REIT Real estate investment trust FHLBB Federal Home Loan Bank Board REMIC Real estate mortgage investment conduit FHLMC Federal Home Loan Mortgage Corporation RP Repurchase agreement FmHA Farmers Home Administration RTC Resolution Trust Corporation FNMA Federal National Mortgage Association SAIF Savings Association Insurance Fund FSLIC Federal Savings and Loan Insurance Corporation SCO Securitized credit obligation G-7 Group of Seven SDR Special drawing right G-10 Group of Ten SMSA Standard metropolitan statistical area GNMA Government National Mortgage Association VA Veterans Administration GENERAL INFORMATION In some of the tables, details do not add to totals because of include not fully guaranteed issues) as well as direct obligarounding. tions of the Treasury. "State and local government" also in- Minus signs are used to indicate (1) a decrease, (2) a negative cludes municipalities, special districts, and other political figure, or (3) an outflow. subdivisions. "U.S. government securities" may include guaranteed issues of U.S. government agencies (the flow of funds figures also Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A4 Domestic Financial Statistics • January 1992 1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 1990 1991 1991 MMoonneettaarryy aanndd ccrreeddiitt aaggggrreeggaattee Q4 Q1 Q2 Q3 June Julyr Aug/ Sept. Oct. Reserves of depository institutions2 1 Total 3.9 9.2 3.4 7.7 8.6 1.9 11.7 6.6 16.1 2 Required 1.7 4.7 9.3 8.3 9.4 4.5 7.5 10.5 12.7 3 Nonborrowed 7.8 9.1 3.8 4.7 7.8 -4.4 8.0 9.5 25.4 4 Monetary base 9.9 14.5 3.9 5.9 3.8 5.5 9.2 6.5 10.0 Concepts of money, liquid assets, and debt4 5 Ml 3.4 5.9 7.3 6.8r 9.6 1.7 9.1 5.4r 13.0 f> M2 2.0 3.4 4.8 -,4r 1.7 -3.8 .0 -.1 3.0 7 M3 .9 4.0 1.8r -2.4r -2.r -4.9 -.6 -1.91" 1.9 8 L 1.8 3.3r -2.4 .5 5.8 1.1 -1.6 -2.0 n.a. 9 Debt 5.7 4.5 3.7 5.2r 5.1 4.5 5.7 6.4 n.a. Nontrgnsaction components 10 In M2y 1.5r 2.6r 3.9 --22..88rr --..99 -5.6 -3.0 -2.0 -.4 11 In M3 only6 -3.6 6.4r -10.5 -11.0r -18.5r -9.9 -3.5 -10.0r -3.0 Time and savings deposits Commercial banks 12 Savings, including MMDAs 4.1 7.5 16.6r 12.9 16.lr 11.8 10.4 9.1r 15.1 13 Small time 11.5 8.8 -1.7 .8 1.0 -1.4 8.0 ~.8r -7.5 14 Large time ,9 -8.5 12.0 .2 -8.6r -4.5r -13.0 -8.2 -16.<f -18.7 Thrift institutions 15 Savings, including MMDAs -7.3 -.7 18.4 9.7 11.7 10.0 2.6 5.6r 9.2 16 Small time -8.6 -9.8 -13.7 -22.9r -26.5 -22.3 -28.5 -18.8r -22.7 17 Large time8' -26.3 -31.9 -35.1 -41.4 -42.4 -38.1 -47.9 -44.8 -46.5 Money market mutual funds 18 General purpose and broker-dealer 99..88 1188..22 66..77 -11.8 -2.6 -16.1 -22.0 -12.2 -4.1 19 Institution-only 30.4 49.9 23.0 .7 -23.8 -12.6 25.4 37.3 49.0 Debt components4 20 Federal 11.6 1122..00 5.7 13.6r 14.9 11.8 16.1 13.5 n.a. 21 Nonfederal 3.8 2.1 3.0 2.4r 2.0 2.1 2.2 4.0 n.a. 1. Unless otherwise noted, rates of change are calculated from average offices in the United Kingdom and Canada, and (3) balances in both taxable and amounts outstanding during preceding month or quarter. tax-exempt, institution-only money market funds. Excludes amounts held by 2. Figures incorporate adjustments for discontinuities associated with regula- depository institutions, the U.S. government, money market funds, and foreign tory changes in reserve requirements. (See also table 1.20.) banks and official institutions. Also excluded is the estimated amount of overnight 3. Seasonally adjusted, break-adjusted monetary base consists of (1) season- RPs and Eurodollars held by institution-only money market funds. Seasonally ally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted M3 is computed by adjusting its non-M2 component as a whole and then adjusted currency component of the money stock, plus (3) (for all quarterly adding this result to seasonally adjusted M2. reporters on the "Report of Transaction Accounts, Other Deposits and Vault L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term Cash" and for all weekly reporters whose vault cash exceeds their required Treasury securities, commercial paper, and bankers acceptances, net of money reserves) the seasonally adjusted, break-adjusted difference between current vault market fund holdings of these assets. Seasonally adjusted L is computed by cash and the amount applied to satisfy current reserve requirements. summing U.S. savings bonds, short-term Treasury securities, commercial paper, 4. Composition of the money stock measures and debt is as follows: and bankers acceptances, each seasonally adjusted separately, and then adding Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults this result to M3. of depository institutions; (2) travelers checks of nonbank issuers; (3) demand Debt: Debt of domestic nonfinancial sectors consists of outstanding creditdeposits at all commercial banks other than those due to depository institutions, market debt of the U.S. government, state and local governments, and private the U.S. government, and foreign banks and official institutions, less cash items in nonfinancial sectors. Private debt consists of corporate bonds, mortgages, conthe process of collection and Federal Reserve float; and (4) other checkable sumer credit (including bank loans), other bank loans, commercial paper, bankers deposits (OCDs), consisting of negotiable order of withdrawal (NOW) and acceptances, and other debt instruments. Data are derived from the Federal automatic transfer service (ATS) accounts at depository institutions, credit union Reserve Board's flow of funds accounts. Data on debt of domestic nonfinancial share draft accounts, and demand deposits at thrift institutions. Seasonally sectors are monthly averages, derived by averaging adjacent month-end levels. adjusted Ml is computed by summing currency, travelers checks, demand Growth rates for debt reflect adjustments for discontinuities over time in the levels deposits, and OCDs, each seasonally adjusted separately. of debt presented in other tables. M2: Ml plus (1) overnight (and continuing-contract) repurchase agreements 5. Sum of (1) overnight RPs and Eurodollars, (2) money market fund balances (RPs) issued by all depository institutions and overnight Eurodollars issued to (general purpose and broker-dealer), (3) MMDAs, and (4) savings and small time U.S. residents by foreign branches of U.S. banks worldwide, (2) savings and small deposits. time deposits (time deposits—including retail repurchase agreements (RPs)—in 6. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U.S. amounts of less than $100,000), and (3) balances in both taxable and tax-exempt residents, and (4) money market fund balances (institution-only), less (5) a general-purpose and broker-dealer money market funds. Excludes individual consolidation adjustment that represents the estimated amount of overnight RPs retirement accounts (IRAs) and Keogh balances at depository institutions and and Eurodollars held by institution-only money market funds. ITiis sum is money market funds. Also excludes all balances held by U.S. commercial banks, seasonally adjusted as a whole. money market funds (general purpose and broker-dealer), foreign governments 7. Small time deposits—including retail RPs—are those issued in amounts of and commercial banks, and the U.S. government. Seasonally adjusted M2 is less than $100,000. All IRA and Keogh account balances at commercial banks and computed by adjusting its non-Mi component as a whole and then adding this thrift institutions are subtracted from small time deposits. result to seasonally adjusted Ml. 8. Large time deposits are those issued in amounts of $100,000 or more, M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of excluding those booked at international banking facilities. $100,000 or more) issued by all depository institutions, (2) term Eurodollars held 9. Large time deposits at commercial banks less those held by money market by U.S. residents at foreign branches of U.S. banks worldwide and at all banking funds, depository institutions, and foreign banks and official institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Money Stock and Bank Credit A5 1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT 1 Millions of dollars Monthly averages of Weekly averages of daily figures for week ending daily figures 1991 1991 Aug. Sept. Oct. Sept. 18 Sept. 25 Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 292,833 297,531 295,971 299,868 296,018 296,126 294,992 295,899 295,313 2%,258 U.S. government securities2 2 Bought outright-system account 251,794 256,689 256,524 257,119 256,812 258,015 256,525 256,366 256,345 256,431 3 Held under repurchase agreements ... 543 2,099 401 3,561 873 0 0 531 0 0 Federal agency obligations 4 Bought outright 6,159 6,155 6,148 6,154 6,154 6,154 6,154 6,150 6,146 6,140 5 Held under repurchase agreements ... 17 203 23 216 95 0 0 99 0 0 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 205 57 38 42 39 52 11 100 24 16 8 Seasonal credit 332 285 210 270 301 291 243 213 207 175 9 Extended credit 297 309 9 550 81 1 5 8 15 12 10 Float 335 523 691 605 544 362 452 573 467 1,292 11 Other Federal Reserve assets 33,151 31,212 31,926 31,351 31,119 31,251 31,602 31,857 32,108 32,192 12 Gold stock 11,062 11,062 11,061 11,062 11,062 11,062 11,062 11,062 11,061 11,060 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 20,810 20,866 20,914 20,865 20,877 20,889 20,903 20,917 20,931 20,945 ABSORBING RESERVE FUNDS 15 Currency in circulation 293,864 294,675 295,745 294,984 293,697 293,582 294,984 296,584 296,354 295,474 16 Treasury cash holdings 610 607 617 611 607 607 607 610 624 626 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 5,644 7,855 5,907 8,321 9,908 8,398 5,260 4,486 6,493 5,130 18 Foreign 233 254 222 268 217 255 240 214 196 231 19 Service-related balances and adjustments 3,307 3,328 3,456 3,249 3,372 3,380 3,430 3,338 3,467 3,606 20 Other 202 245 267 249 245 277 261 261 273 278 21 Other Federal Reserve liabilities and capita] 8,282 8,656 8,692 8,637 8,534 8,926 9,229 8,514 8,362 8,522 22 Reserve balances with Federal Reserve Banks 22,580 23,855 23,058 25,495 21,395 22,671 22,964 23,889 21,555 24,414 End-of-month figures Wednesday figures 1991 1991 Aug. Sept. Oct. Sept. 18 Sept. 25 Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 293,306 296,876 306,804 311,757 294,757 295,999 293,920 301,227 295,308 296,078 U.S. government securities Bought outright-system account... 251,794 256,689 258,961 256,149 256,361 257,389 254,960 256,894 256,129 257,042 Held under repurchase agreements 0 0 8,714 15,116 0 0 0 3,718 0 0 Federal agency obligations Bought outright 6,159 6,154 6,140 6,154 6,154 6,154 6,154 6,150 6,140 6,140 Held under repurchase agreements 0 0 19 816 0 0 0 695 0 0 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions Adjustment credit 97 38 30 177 52 28 17 216 20 16 Seasonal credit 305 276 123 292 302 265 223 214 197 156 Extended credit 443 0 0 548 0 2 8 9 18 1 Float 48 232 604 1,021 745 553 807 1,496 654 583 Other Federal Reserve assets 31,296 31,621 32,212 31,484 31,142 31,608 31,752 31,834 32,151 32,140 12 Gold stock 11,062 11,062 11,059 11,062 11,062 11,062 11,062 11,061 11,061 11,060 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 20,833 20,889 20,940 20,865 20,877 20,889 20,903 20,917 20,931 20,945 ABSORBING RESERVE FUNDS 15 Currency in circulation 294,884 293,512 2%,522 294,516 293,422 294,144 295,786 297,019 296,013 295,899 16 Treasury cash holdings 605 607 631 607 607 607 607 623 626 630 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 6,745 7,928 18,111 12,774 5,324 7,8% 4,963 5,356 6,269 4,566 18 Foreign 256 385 223 229 243 217 192 220 209 339 19 Service-related balances and adjustments 3,412 3,380 3,504 3,249 3,372 3,380 3,430 3,338 3,467 3,606 20 Other 219 283 213 259 285 280 249 258 282 220 21 Other Federal Reserve liabilities and capital 8,729 9,522 8,354 8,379 8,289 9,148 8,394 8,211 8,181 8,337 22 Reserve balances with Federal Reserve Banks3 20,370 23,229 21,264 33,689 25,172 22,296 22,283 28,199 22,271 24,504 1. For amounts of cash held as reserves, see table 1.12. Components may not scheduled to be bought back under matched sale-purchase transactions. sum to totals because of rounding. 3. Excludes required clearing balances and adjustments to compensate for 2. Includes securities loaned—fully guaranteed by U.S. government securities float. pledged with Federal Reserve Banks—and excludes any securities sold and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A6 Domestic Financial Statistics • January 1992 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Prorated monthly averages of biweekly averages RReesseerrvvee ccllaassssiiffiiccaattiioonn 1988 1989 1990 1991 Dec. Dec. Dec. Apr. May June July Aug. Sept. Oct. 1 Reserve balances with Reserve Banks2 37,837 35,436 30,237 23,508 22,287 23,685 23,271 22,810 23,447 23,199 2 Total vault cash3 28,204 29,822 31,777 30,556 30,720 30,524 31,322 31,779 31,549 32,305 3 Applied vault cash 25,909 27,374 28,884 26,793 26,776 26,722 27,389 27,798 27,680 28,386 4 Surplus vault cash 2,295 2,448 2,893 3,764 3,944 3,801 3,933 3,981 3,869 3,919 5 Total reserves6 63,746 62,810 59,120 50,301 49,063 50,407 50,660 50,607 51,127 51,585 6 Required reserves . 62,699 61,887 57,456 49,270 48,033 49,399 49,754 49,521 50,198 50,499 7 Excess reserve balances at Reserve Banks ... 1,047 923 1,664 1,031 1,030 1,008 906 1,086 929 1,086 8 Total borrowings at Reserve Banks8 1,716 265 326 231 303 340 607 764 645 261 9 Seasonal borrowings 130 84 76 79 151 222 317 331 287 211 10 Extended credit® 1,244 20 23 86 88 8 46 300 302 12 Biweekly averages of daily figures for weeks ending 1991 July 10 July 24 Aug. 7 Aug. 21 Sept. 4 Sept. 18 Oct. 2r Oct. 16 Oct. 30 Nov. 13 1 Reserve balances with Reserve Banks2 23,853 22,977 23,029 22,508 23,077 24,771 22,024 23,418 22,984 25,493 2 Total vault cash5 31,327 31,351 31,257 32,499 31,137 31,015 32,310 32,333 32,381 30,841 3 Applied vault cash 27,404 27,456 27,234 28,469 27,254 27,408 28,141 28,506 28,377 27,325 4 Surplus vault cash 3,923 3,895 4,023 4,030 3,883 3,608 4,169 3,827 4,004 3,516 5 Total reserves 51,256 50,433 50,262 50,977 50,331 52,179 50,165 51,924 51,361 52,818 6 Required reserves 50,375 49,492 49,393 49,917 49,058 51,447 49,122 50,908 50,188 51,904 7 Excess reserve balances at Reserve Banks ... 882 941 870 1,061 1,273 732 1,044 1,016 1,173 914 8 Total borrowings at Reserve Banks 601 469 892 679 795 828 383 290 225 114 9 Seasonal borrowings 290 320 351 330 320 269 296 228 191 98 10 Extended credit9 5 4 188 281 406 496 41 7 14 2 1. Data in this table also appear in the Board's H.3 (502) weekly statistical institutions (that is, those whose vault cash exceeds their required reserves) to release. For ordering address, see inside front cover. Components may not sum to satisfy current reserve requirements. totals because of rounding. 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 depository institutions subject to reserve 7. Total reserves (line 5) less required reserves (line 6). requirements. Dates refer to the maintenance periods during which the vault cash 8. Also includes adjustment credit. can be used to satisfy reserve requirements. Under contemporaneous reserve 9. Extended credit consists of borrowing at the discount window under the requirements, maintenance periods end thirty days after the lagged computation terms and conditions established for the extended credit program to help periods during which the balances are held. depository institutions deal with sustained liquidity pressures. Because there is 4. All vault cash held during the lagged computation period by "bound" not the same need to repay such borrowing promptly as there is with traditional institutions (that is, those whose required reserves exceed their vault cash) plus short-term adjustment credit, the money market impact of extended credit is the amount of vault cash applied during the maintenance period by "nonbound" similar to that of nonborrowed reserves. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Money Stock and Bank Credit A7 1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Banks1 Millions of dollars, averages of daily figures 1991, week ending Monday SSoouurrccee aanndd mmaattuurriittyy Apr. 15 Apr. 22 Apr. 29 May 6 May 13 May 20 May 27 June 3 June 10 Federal funds purchased, repurchase agreements, and other selected borrowings From commercial banks in the United States 1 For one day or under continuing contract 80,513 73,405 67,102 75,412 74,532 74,706 67,945 77,969 79,824 2 For all other maturities 15,935 15,363 15,092 15,405 15,510 15,345 15,959 16,406 16,378 From other depository institutions, foreign banks and official institutions, and U.S. government agencies 3 For one day or under continuing contract 28,875 28,319 30,267 30,603 31,584 33,895 32,560 32,237 29,605 4 For all other maturities 21,869 20,716 20,308 19,680 20,518 22,243 22,780 21,602 22,362 Repurchase agreements on U.S. government and federal agency securities Brokers and nonbank dealers in securities 5 For one day or under continuing contract 10,730 10,097 9,754 10,683 10,530 12,709 11,848 11,754 11,261 6 For all other maturities 19,320 18,400 18,149 17,824 17,484 16,970 16,969 16,935 17,975 All other customers 7 For one day or under continuing contract 24,029 23,555 23,289 23,560 22,794 24,457 24,252 23,764 22,568 8 For all other maturities 11,167 10,924 11,846 11,698 11,481 10,868 11,268 11,081 11,068 MEMO: Federal funds loans and resale agreements in immediately available funds in maturities of one day or under continuing contract 9 To commercial banks in the United States 43,902 40,273 36,352 44,445 39,324 40,629 38,429 49,608 45,070 10 To all other specified customers2 20,559 17,148 15,832 16,094 14,803 15,617 15,271 17,298 17,507 1. Banks with assets of $4 billion or more as of Dec. 31, 1988. 2. Brokers and nonbank dealers in securities, other depository institutions, Data in this table also appear in the Board's H.5 (507) weekly statistical release. foreign banks and official institutions, and U.S. government agencies. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A8 Domestic Financial Statistics • January 1992 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 11/29/91 date rate 11/29/91 date rate 11/29/91 date rate Effective date Boston 4.5 11/6/91 5 4.5 11/6/91 5 5.35 11/29/91 5.45 11/14/91 New York 11/6/91 11/6/91 11/29/91 11/14/91 Philadelphia 11/6/91 11/6/91 11/29/91 11/14/91 Cleveland 11/6/91 11/6/91 11/29/91 11/14/91 Richmond 11/6/91 11/6/91 11/29/91 11/14/91 Atlanta 11/6/91 11/6/91 11/29/91 11/14/91 Chicago 11/6/91 11/6/91 11/29/91 11/14/91 St. Louis 11/7/91 11/7/91 11/29/91 11/14/91 Minneapolis 11/6/91 11/6/91 11/29/91 11/14/91 Kansas City..... 11/6/91 11/6/91 11/29/91 11/14/91 Dallas 11/6/91 11/6/91 11/29/91 11/14/91 San Francisco ... 4.5 11/6/91 5 4.5 11/6/91 5 5.35 11/29/91 5.45 11/14/91 Range of rates for adjustment credit in recent years4 Range (or F.R. Range (or F.R. Range (or level)— Bank level)— Bank level)— Effective date All F.R. of Effective date All F.R. of Effective date All F.R. Banks N.Y. Banks N.Y. Banks In effect Dec. 31, 1977 6 6 11998811——MMaayy 55 13-14 14 1986—Mar. 7 7-7.5 7 88 14 14 10 7 7 1978—Jan. 9 6-6.5 6.5 Nov. 2 13-14 13 Apr. 21 6.5-7 6.5 20 6.5 6.5 6 13 13 July 11 6 6 May 11 6.5-7 7 Dec. 4 12 12 Aug. 21 5.5-6 5.5 12 7 7 22 5.5 5.5 July 3 7-7.25 7.25 1982—July 20 11.5-12 11.5 10 7.25 7.25 23 11.5 11.5 1987—Sept. 4 5.5-6 6 Aug. 21 7.75 7.75 Aug. 2 11-11.5 11 11 6 6 Sept. 22 8 8 3 11 11 Oct. 16 8-8.5 8.5 16 10.5 10.5 1988—Aug. 9 6-6.5 6.5 20 8.5 8.5 27 10-10.5 10 11 6.5 6.5 Nov. 1 8.5-9.5 9.5 30 10 10 3 9.5 9.5 Oct. 12 9.5-10 9.5 1989—Feb. 24 6.5-7 7 13 9.5 9.5 7 7 1979—July 20 10 10 Nov. 22 9-9.5 9 27 Aug. 17 10-10.5 10.5 26 9 9 6.5 6.5 20 10.5 10.5 Dec. 14 8.5-9 9 1990—Dec. 19 Sept. 19 10.5-11 11 15 8.5-9 8.5 6-6.5 6 21 11 11 17 8.5 8.5 1991—Feb. 1 6 6 Oct. 8 11-12 12 4 5.5-6 5.5 10 12 12 1984—Apr. 9 8.5-9 9 Apr. 30 5.5 5.5 13 9 9 May 2 5-5.5 5 1980—Feb. 15 12-13 13 Nov. 21 8.5-9 8.5 Sept. 13 5 5 19 13 13 26 8.5 8.5 Sept. 17 4.5-5 4.5 May 29 12-13 13 Dec. 24 8 8 Nov. 6 4.5 4.5 30 12 12 Nov. 7 June 13 11-12 11 1985—May 20 7.5-8 7.5 In effect Nov. 29, 1991 4.5 4.5 16 11 11 24 7.5 7.5 29 10 10 July 28 10-11 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 flexible rate is reestablished on the first business day of each two-week reserve institutions meet temporary needs for funds that cannot be met through reason- maintenance period. At the discretion of the Federal Reserve Bank, the time able alternative sources. The highest rate established for loans to depository period for which the basic discount rate is applied may be shortened. institutions may be charged on adjustment-credit loans of unusual size that result 4. For earlier data, see the following publications of the Board of Governors: from a major operating problem at the borrower's facility. Banking and Monetary Statistics, 1914-1941, and 1941-1970', and the Annual Seasonal credit is available to help smaller depository institutions meet regular, Statistical Digest, 1970-1979. seasonal needs for funds that cannot be met through special industry lenders and In 1980 and 1981, the Federal Reserve applied a surcharge to short-term that arise from a combination of expected patterns of movement in their deposits adjustment-credit borrowings by institutions with deposits of $500 million or more and loans. that had borrowed in successive weeks or in more than four weeks in a calendar 2. Extended credit is available to depository institutions when similar assist- quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7, ance is not reasonably available from other sources, when exceptional circum- 1980. There was no surcharge until Nov. 17,1980, when a 2 percent surcharge was stances or practices involve only a particular institution, or when an institution is adopted; the surcharge was subsequently raised to 3 percent on Dec. 5,1980, and experiencing difficulties adjusting to changing market conditions over a longer to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective period of time. Sept. 22, 1981, and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981, the 3. For extended-credit loans outstanding more than thirty days, a flexible rate formula for applying the surcharge was changed from a calendar quarter to a somewhat above rates on market sources of funds ordinarily is charged, but in no moving thirteen week period. The surcharge was eliminated on Nov. 17, 1981. case is the rate charged less than the basic discount rate plus 50 basis points. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Policy Instruments A9 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Type of deposit2 Net transaction accounts 1 $0 million-$42.2 million... 12/17/91 2 More than $42.2 million .. 12/17/91 3 Nonpersonal time deposits4 12/27/90 4 Eurocurrency liabilities5 .. 12/27/90 1. Required reserves must be held in the form of deposits with Federal Reserve However, money market deposit accounts (MMDAs) and similar accounts subject Banks or vault cash. Nonmember institutions may maintain reserve balances with to the rules that permit no more than six preauthorized, automatic, or other a Federal Reserve Bank indirectly on a pass-through basis with certain approved transfers per month, of which no more than three may be checks, are not institutions. For previous reserve requirements, see earlier editions of the Annual transaction accounts (such accounts are savings deposits). Report or the Federal Reserve Bulletin. Under provisions of the Monetary The Monetary Control Act of 1980 requires that the amount of transaction Control Act, depository institutions include commercial banks, mutual savings accounts against which the 3 percent reserve requirement applies be modified banks, savings and loan associations, credit unions, agencies and branches of annually by 80 percent of the percentage change in transaction accounts held by foreign banks, and Edge corporations. all depository institutions, determined as of June 30 each year. Effective Dec. 17, 2. The Garn-St Germain Depository Institutions Act of 1982 (Public Law 1991, for institutions reporting quarterly, and Dec. 24, 1991, for institutions 97-320) requires that $2 million of reservable liabilities of each depository reporting weekly, the amount was increased from $41.1 million to $42.2 million. institution be subject to a zero percent reserve requirement. The Board is to adjust 4. For institutions that report weekly, the reserve requirement on nonpersonal the amount of reservable liabilities subject to this zero percent reserve require- time deposits with an original maturity of less than IVi years was reduced from 3 ment each year for the succeeding calendar year by 80 percent of the percentage percent to IVi percent for the maintenance period that began Dec. 13, 1990, and increase in the total reservable liabilities of all depository institutions, measured to zero for the maintenance period that began Dec. 27, 1990. The reserve on an annual basis as of June 30. No corresponding adjustment is to be made in requirement on nonpersonal time deposits with an original maturity of 1 Vi years the event of a decrease. On Dec. 17, 1991, the exemption was raised from $3.4 or more has been zero since Oct. 6, 1983. million to $3.6 million. The exemption applies in the following order: (1) net For institutions that report quarterly, the reserve requirement on nonpersonal negotiable order of withdrawal (NOW) accounts (NOW accounts less allowable time deposits with an original maturity of less than 1 Yi years was reduced from 3 deductions); and (2) net other transaction accounts. The exemption applies only to percent to zero on Jan. 17, 1991. accounts that would be subject to a 3 percent reserve requirement. 5. The reserve requirement on Eurocurrency liabilities was reduced from 3 3. Transaction accounts include all deposits against which the account holder is percent to zero in the same manner and on the same dates as were the reserve permitted to make withdrawals by negotiable or transferable instruments, pay- requirement on nonpersonal time deposits with an original maturity of less than ment orders of withdrawal, and telephone and preauthorized transfers in excess of 1 Vi years (see note 4). three per month for the purpose of making payments to third persons or others. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A10 Domestic Financial Statistics • January 1992 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars 1991 TTyyppee ooff ttrraannssaaccttiioonn 11998888 11998899 11999900 Mar. Apr. May June July Aug. Sept. U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 8,223 14,284 24,739 313 908 3,411 37 1,359 5,776 529 2 Gross sales 587 12,818 7,291 0 0 0 0 0 0 0 3 Exchanges 241,876 231,211 241,086 18,808 21,981 27,548 19,680 22,280 28,009 19,508 4 Redemptions 2,200 12,730 4,400 0 0 0 0 0 0 0 Others within one year 5 Gross purchases 2,176 327 425 700 700 200 0 625 340 200 6 Gross sales 0 0 0 0 0 0 0 0 0 0 7 Maturity shifts 23,854 28,848 25,638 413 4,324 5,175 0 1,478 3,425 1,131 8 Exchanges -24,588 -25,783 -27,424 -1,877 -993 -4,887 0 -3,136 -2,443 -2,202 9 Redemptions 0 500 0 0 0 0 0 0 0 0 One to five years 10 Gross purchases 5,485 1,436 250 2,950 550 0 0 0 0 650 11 Gross sales 800 490 200 0 0 0 0 0 0 0 12 Maturity shifts -17,720 -25,534 -21,770 -213 -4,214 -3,410 0 -1,192 -3,425 -1,131 13 Exchanges 22,515 23,250 25,410 1,877 777 4,287 0 2,601 1,993 2,202 Five to ten years 14 Gross purchases 1,579 287 0 50 0 0 0 0 0 0 15 Gross sales 175 29 100 0 0 0 0 0 0 0 16 Maturity shifts -5,946 -2,231 -2,186 -200 -110 -1,605 0 -286 688 0 17 Exchanges 1,797 1,934 789 0 216 400 0 534 300 0 More than ten years 18 Gross purchases 1,398 284 0 0 0 0 0 0 0 0 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shifts -188 -1,086 -1,681 0 0 -160 0 0 -688 0 21 Exchanges 275 600 1,226 0 0 200 0 0 150 0 All maturities 22 Gross purchases 18,863 16,617 25,414 4,013 2,158 3,611 37 1,984 6,116 1,379 23 Gross sales 1,562 13,337 7,591 0 0 0 0 0 0 0 24 Redemptions 2,200 13,230 4,400 0 0 0 0 0 0 0 Matched transactions 25 Gross sales 1,168,484 1,323,480 1,369,052 151,0% 185,662 147,7% 118,903 120,292 112,414 116,266 26 Gross purchases 1,168,142 1,326,542 1,363,434 151,412 187,032 147,803 118,239 121,803 110,280 118,481 Repurchase agreements2 27 Gross purchases 152,613 129,518 219,632 2233,,882211 16,173 9,241 9,440 35,149 16,847 40,447 28 Gross sales 151,497 132,688 202,551 38,589 16,173 9,241 8,478 36,111 16,847 40,447 29 Net change in U.S. government securities 15,872 -10,055 24,886 -10,439 3,528 3,618 335 2,532 3,981 3,595 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 0 0 0 0 0 0 0 0 0 0 Gross sales 0 0 0 0 0 0 0 0 0 5 32 Redemptions 587 442 183 0 91 0 0 55 0 0 Repurchase agreements2 33 Gross purchases 57,259 3388,,883355 41,836 22,,551188 640 885 1,225 3,245 537 3,061 34 Gross sales 56,471 40,411 40,461 3,784 640 885 748 3,722 537 3,061 35 Net change in federal agency obligations 198 -2,018 1,192 -1,266 -91 0 477 -532 0 -5 36 Total net change in System Open Market Account 16,070 -12,073 26,078 -11,705 3,437 3,618 812 2,000 3,981 3,590 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
Federal Reserve Banks All 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 1991 1991 Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30 Aug. 30 Sept. 30 Oct. 31 Consolidated condition statement ASSETS 1 Gold certificate account 11,062 11,062 11,061 11,061 11,060 11,062 11,062 11,059 2 Special drawing rights certificate account 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 3 Coin 582 587 589 584 585 555 579 579 Loans 4 To depository institutions 295 247 439 234 172 844 315 153 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 6,154 6,154 6,150 6,140 6,140 6,159 6,154 66,,114400 8 Held under repurchase agreements 0 0 695 0 0 0 0 19 9 Total U.S. Treasury securities 257,389 254,960 260,612 256,129 257,042 254,959 258,554 267,675 10 Bought outright2 257,389 254,960 256,894 256,129 257,042 254,959 258,554 258,961 11 Bills 127,404 124,975 126,910 126,144 127,058 125,824 128,569 128,976 12 Notes 98,372 98,372 98,372 98,372 98,372 97,522 98,372 98,372 13 Bonds 31,613 31,613 31,613 31,613 31,613 31,613 31,613 31,613 14 Held under repurchase agreements 0 0 3,718 0 0 0 0 8,714 15 Total loans and securities 263,837 261,361 267,897 262,503 263,355 261,962 265,022 273,987 16 Items in process of collection 6,176 5,414 10,343 5,385 5,256 4,832 2,591 4,949 17 Bank premises 953 957 957 961 965 950 953 965 Other assets 18 Denominated in foreign currencies 25,943 25,959 26,020 26,040 25,758 25,661 25,939 25,557 19 All other4 5,270 5,491 5,546 5,738 5,894 4,723 5,473 6,243 20 Total assets 323,841 320,848 332,431 322,290 322,891 319,763 321,636 333,357 LIABILITIES 21 Federal Reserve notes 274,444 276,077 277,315 276,291 276,170 275,210 273,809 276,792 22 Total deposits 34,920 31,806 38,292 33,154 33,903 31,200 36,000 44,061 23 Depository institutions 26,527 26,403 32,458 26,393 28,778 23,962 27,404 25,513 24 U.S. Treasury—General account 7,896 4,963 5,356 6,269 4,566 6,745 7,928 18,111 25 Foreign—Official accounts 217 192 220 209 339 256 385 223 26 Other 280 249 258 282 220 236 283 213 27 Deferred credit items 5,329 4,570 8,614 4,663 4,481 4,624 2,306 4,151 28 Other liabilities and accrued dividends5 2,860 2,837 2,676 2,637 2,774 2,977 2,902 2,912 29 Total liabilities 317,553 315,291 326,897 316,746 317,327 314,012 315,016 327,915 CAPITAL ACCOUNTS 30 Capital paid in 2,568 2,569 2,569 2,571 2,606 2,569 2,565 2,606 31 Surplus 2,423 2,423 2,423 2,423 2,423 2,423 2,423 2,413 32 Other capital accounts 1,297 565 543 550 535 759 1,632 423 33 Total liabilities and capital accounts 323,841 320,848 332,431 322,290 322,891 319,763 321,636 333,357 34 MEMO: Marketable U.S. Treasury securities held in custody for foreign and international accounts 246,344 246,271 244,151 246,212 245,777 250,886 250,232 252,020 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to Bank) 365,871 366,079 366,834 367,503 368,290 353,213 366,144 368,108 36 LESS: Held by Federal Reserve Bank 91,427 90,002 89,519 91,212 92,120 78,003 92,335 91,316 37 Federal Reserve notes, net 274,444 276,077 277,315 276,291 276,170 275,210 273,809 276,792 Collateral held against notes, net: 38 Gold certificate account 11,062 11,062 11,061 11,061 11,060 11,062 11,062 11,059 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 253,364 254,997 256,236 255,212 255,092 254,130 252,729 255,715 42 Total collateral 274,444 276,077 277,315 276,291 276,170 275,210 273,809 276,792 1. Some of the data in this table also appear in the Board's H.4.1 (503) weekly 3. Valued monthly at market exchange rates. statistical release. For ordering address, see inside front cover. Components may 4. Includes special investment account at the Federal Reserve Bank of Chicago not sum to totals because of rounding. in Treasury bills maturing within ninety 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
A12 Domestic Financial Statistics • January 1992 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holding 1 Millions of dollars Wednesday End of month TTTyyypppeee aaannnddd mmmaaatttuuurrriiitttyyy gggrrrooouuupppiiinnnggg 1991 1991 Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30 Aug. 30 Sept. 30 Oct. 31 1 Total loans 295 247 439 234 172 844 315 153 ? Within fifteen days 104 95 378 211 143 659 163 72 3 Sixteen days to ninety days 191 152 61 23 29 185 152 82 4 Ninety-one days to one year 0 0 0 0 0 0 0 0 5 Total acceptances 0 0 0 0 0 0 0 0 6 Within fifteen days 0 0 0 0 0 0 0 0 7 Sixteen days to ninety days 0 0 0 0 0 0 0 0 8 Ninety-one days to one year 0 0 0 0 0 0 0 0 9 Total U.S. Treasury securities 257,389 254,960 260,612 256,129 257,042 254,959 258,554 258,961 10 Within fifteen days2 8,499 8,573 15,823 11,883 10,669 3,393 5,257 6,709 11 Sixteen days to ninety days 63,741 61,365 59,923 62,985 62,862 59,957 65,857 61,051 12 Ninety-one days to one year 86,487 86,360 85,956 82,350 84,600 92,762 88,778 91,443 n One year to five years 60,664 60,664 60,692 60,692 60,692 60,848 60,664 61,539 14 Five years to ten years 13,820 13,820 14,042 14,042 14,042 13,820 13,820 14,042 15 More than ten years 24,178 24,178 24,178 24,178 24,178 24,178 24,178 24,178 16 Total Federal agency obligations 6,154 6,154 6,845 6,140 6,140 6,159 6,154 6,140 17 Within fifteen days2 103 114 748 142 158 328 283 158 18 Sixteen days to ninety days 669 834 816 752 759 660 669 759 19 Ninety-one days to one year 1,659 1,484 1,463 1,428 1,431 1,401 1,479 1,431 20 One year to five years 2,485 2,485 2,580 2,630 2,605 2,553 2,485 2,605 21 Five years to ten years 1,050 1,050 1,050 1,000 1,000 1,029 1,050 1,000 22 More than ten years 188 188 188 188 188 188 188 188 1. Components may not sum to totals because of rounding. fifteen days in accordance with the maximum possible maturity of the agreements. 2. Holdings under repurchase agreements are classified as maturing within Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary and Credit Aggregates A13 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1991 IItteemm 11998877 11998888 11998899 11999900 DDeecc.. DDeecc.. DDeecc.. DDeecc.. Mar. Apr. May June July Aug. Sept. Oct. Seasonally adjusted AADDJJUUSSTTEEDD FFOORR CCHHAANNGGEESS IINN RREESSEERRVVEE RREEQQUUIIRREEMMEENNTTSS22 11 TToottaall rreesseerrvveess33 45.81 47.60 47.73 49.10 49.57 49.39 50.07 50.43 50.51 51.00 51.28 51.97 22 NNoonnbboorrrroowweedd rreesseerrvveess ^^ 45.03 45.88 47.46 48.78 49.32 49.16 49.77 50.09 49.90 50.24 50.64 51.71 33 NNoonnbboorrrroowweedd rreesseerrvveess pplluuss eexxtteennddeedd ccrreeddiitt 45.52 47.12 47.48 48.80 49.38 49.25 49.85 50.10 49.95 50.54 50.94 51.72 44 RReeqquuiirreedd rreesseerrvveess 44.77 46.55 46.81 47.44 48.39 48.36 49.04 49.42 49.60 49.92 50.35 50.88 55 MMoonneettaarryy bbaassee 246.28 263.46 274.17 299.78 310.98 310.60 311.48 312.47 313.91 316.31 318.02 320.67 Not seasonally adjusted 47.04 49.00 49.18 50.58 48.59 50.30 49.06 50.41 50.66 50.61 51.13 51.58 46.26 47.29 48.91 50.25 48.34 50.07 48.76 50.07 50.05 49.84 50.48 51.32 8 Nonborrowed reserves plus extended credit 46.75 48.53 48.93 50.28 48.40 50.16 48.85 50.07 50.10 50.14 50.78 51.34 99 RReeqquuiirreedd rreesseerrvveess88 46.00 47.% 48.26 48.91 47.41 49.27 48.03 49.40 49.75 49.52 50.20 50.50 1100 MMoonneettaarryy bbaassee99 249.93 267.46 278.30 304.04 308.19 310.86 311.02 314.06 316.21 316.76 317.38r 319.27 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS10 62.14 63.75 62.81 59.12 48.59 50.30 49.06 50.41 50.66 50.61 51.13 51.59 61.36 62.03 62.54 58.79 48.35 50.07 48.76 50.07 50.05 49.84 50.48 51.32 13 Nonborrowed reserves plus extended credit 61.85 63.27 62.56 58.82 48.40 50.16 48.85 50.08 50.10 50.14 50.78 51.34 61.09 62.70 61.89 57.46 47.41 49.27 48.03 49.40 49.75 49.52 50.20 50.50 266.06 283.00 292.55 313.70 311.04 313.95 314.25 317.25 319.46 320.07 320.70" 322.73 16 Excess reserves13 1.05 1.05 .92 1.66 1.18 1.03 1.03 1.01 .91 1.09 .93 1.09 17 Borrowings from the Federal Reserve .78 1.72 .27 .33 .24 .23 .30 .34 .61 .76 .65 .26 1. Latest monthly and biweekly figures are available from the Board's H.3 (502) changes in reserve requirements, a multiplicative procedure is used to estimate weekly statistical release. Historical data and estimates of the impact on required what required reserves would have been in past periods had current reserve reserves of changes in reserve requirements are available from the Monetary and requirements been in effect. Break-adjusted required reserves include required Reserves Projections Section, Division of Monetary Affairs, Board of Governors reserves against transactions deposits and nonpersonal time and savings deposits of the Federal Reserve System, Washington, D.C. 20551. (but not reservable nondeposit liabilities). 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 weekly reporters whose vault cash exceeds 4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally their required reserves) the break-adjusted difference between current vault cash adjusted, break-adjusted total reserves (line 1) less total borrowings of depository 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. Since the introduction of changes in reserve requirements cash and the amount applied to satisfy current reserve requirements. (CRR), currency and vault cash figures have been measured over the computation 7. Break-adjusted total reserves equal break-adjusted required reserves (line 9) periods ending on Mondays. plus excess reserves (line 16). 13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14). 8. To adjust required reserves for discontinuities that are due to regulatory Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A14 Domestic Financial Statistics • January 1992 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. July Aug. Sept. Oct. Seasonally adjusted Measures2 1 Ml 749.7 786.4 793.6 825.4 859.6 866.1 870.0 879.4 2 M2 2,910.1 3,069.9 3,223.1 3,327.8r 3,390.5 3,390.6 3,390.3 3,398.8 3 M3 3,677.4 3,919.1 4,055.2 4,111.2r 4,148.5 4,146.5 4,139.9 4,146.4 4 L 4,337.0 4,676.0 4,889.9 4,966.6r 4,984.8 4,978.3 4,970.1 n.a. 5 Debt 8,345.1 9,107.6 9,790.4 10,434.0 10,688.6 10,739.5 10,796.8 n.a. Ml components 6 Currency 196.8 212.0 222.2 246.4 258.9 260.8 262.4 264.5 7 Travelers checks 7.0 7.5 7.4 8.4 7.7 7.7 7.8 7.9 8 Demand deposits 286.5 286.3 278.7 276.9 278.9 279.8 279.4 282.6 9 Other checkable deposits 259.3 280.7 285.2 293.8 314.0 317.8 320.5 324.4 Nontrgnsaction components 10 In M2 2,160.4 2,283.5 2,429.5 2,502.4r 2,530.9 2,524.5 2,520.2 2,519.4 11 In M3 767.3 849.3 832.1 783.4r 758.1 755.9 749.6 747.7 Commercial banks 12 Savings deposits, including MMDAs 534.8 542.2 540.7 577.7 625.6 631.0 635.8 643.8 13 Small time deposits 388.0 447<5 531.4 598.1 601.0 605.0 604.6 600.8 14 Large time deposits10, 11 326.6 368.0 401.9 386.1 393.5 390.8 385.6 379.6 Thrift institutions 15 Savings deposits, including MMDAs 402.3 383.5 349.5 339.0 364.4 365.2 366.9 369.7 16 Small time deposits 529.7 584.3 614.5 566.1 517.6 505.3 497.4 488.0 17 Large time deposits 162.6 174.3 161.6 121.0 97.7 93.8 90.3 86.8 Money market mutual funds 18 General purpose and broker-dealer 221.7 241.1 313.6 345.4 359.4 352.8 349.2 348.0 19 Institution-only 88.9 86.9 101.9 125.7 141.8 144.8 149.3 155.4 Debt components 20 Federal debt 1,957.9 2,114.2 2,268.1 2,534.3 2,672.1 2,708.0 2,738.5 n.a. 21 Nonfederal debt 6,387.2 6,993.4 7,522.3 7,899.7 8,016.5 8,031.5 8,058.3 n.a. Not seasonally adjusted Measures2 22 Ml 766.2 804.2 811.9 844.3 861.8 864.0 867.0 875.3 23 M2 2,923.0 3,083.3 3,236.6 3,341.9* 3,393.8 3,391.4 3,385.3 3,395.7 24 M3 3,690.3 3,931.5 4,067.0 4,123.3r 4,151.4 4,151.7 4,137.6 4,143.0 25 L 4,352.8 4,691.8 4,907.4 4,985.2r 4,977.7 4,976.8 4,968.3 n.a. 26 Debt 8,329.1 9,093.2 9,775.9 10,421.2 10,647.2 10,692.0 10,747.5 n.a. Ml components 27 Currency3 199.3 214.8 225.3 249.6 260.8 262.0 261.8 263.2 28 Travelers checks4 6.5 6.9 6.9 7.8 8.5 8.6 8.3 8.0 29 Demand deposits 298.6 298.9 291.5 289.9 280.6 278.7 278.5 283.6 30 Other checkable deposits 261.8 283.5 288.2 297.0 311.8 314.8 318.4 320.5 Nontrgnsaction components 31 In M2 2,156.8 2,279.1 2,424.7 2,497.6r 2,532.0 2,527.4 2,518.3 2,520.4 32 In M38 767.3 848.2 830.4 781.4r 757.6 760.3 752.3 747.3 Commercial banks 33 Savings deposits, including MMDAs 535.8 543.8 542.9 579.3 624.5 630.1 634.2 643.4 34 Small time deposits 387.2 446.0 529.2 596.1 602.8 606.1 604.4 600.7 35 Large time deposits1 ' 325.8 366.8 400.4 386.1 392.3 391.8 387.4 382.0 Thrift institutions 36 Savings deposits, including MMDAs 399.9 381.5 347.9 338.3 365.6 365.4 366.1 369.9 37 Small time deposits 529.5 583.8 613.8 564.1 519.2 506.3 497.3 487.9 38 Large time deposits10 163.3 175.2 162.6 121.1 97.4 94.1 90.7 87.3 Money market mutual funds 39 General purpose and broker-dealer 221.1 240.7 313.5 345.5 354.5 351.6 349.3 347.8 40 Institution-only 89.6 87.6 102.8 127.0 139.7 143.9 145.9 152.4 Repurchase agreements and eurodollars 41 Overnight 83.2 83.4 77.3 74.3r 65.3 67.9 67.1 70.6 42 Term 197.1 227.7 179.8 160.8r 143.9 145.5 143.1 140.5 Debt components 43 Federal debt 1,955.6 2,111.8 2,265.9 2,532.1 2,657.9 2,691.4 2,721.7 n.a. 44 Nonfederal debt 6,373.5 6,981.4 7,509.9 7,889.1 7,989.3 8,000.6 8,025.7 n.a. For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary and Credit Aggregates A15 NOTES TO TABLE 1.21 1. Latest monthly and weekly figures are available from the Board's H.6 (508) Treasury securities, commercial paper, and bankers acceptances, net of money weekly statistical release. Historical data are available from the Money and market fund holdings of these assets. Seasonally adjusted L is computed by Reserves Projection Section, Division of Monetary Affairs, Board of Governors of summing U.S. savings bonds, short-term Treasury securities, commercial paper, the Federal Reserve System, Washington, D.C. 20551. and bankers acceptances, each seasonally adjusted separately, and then adding 2. Composition of the money stock measures and debt is as follows: this result to M3. Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults Debt: Debt of domestic nonfinancial sectors consists of outstanding credit of depository institutions; (2) travelers checks of nonbank issuers; (3) demand market debt of the U.S. government, state and local governments, and private deposits at all commercial banks other than those due to depository institutions, nonfinancial sectors. Private debt consists of corporate bonds, mortgages, conthe U.S. government, and foreign banks and official institutions, less cash items in sumer credit (including bank loans), other bank loans, commercial paper, bankers the process of collection and Federal Reserve float; and (4), other checkable acceptances, and other debt instruments. Data are derived from the Federal deposits (OCDs), consisting of negotiable order of withdrawal (NOW) and Reserve Board's flow of funds accounts. Debt data are based on monthly automatic transfer service (ATS) accounts at depository institutions, credit union averages. This sum is seasonally adjusted as a whole. share draft accounts, and demand deposits at thrift institutions. Seasonally 3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of adjusted Ml is computed by summing currency, travelers checks, demand depository institutions. deposits, and OCDs, each seasonally adjusted separately. 4. Outstanding amount of U.S. dollar-denominated travelers checks of non- M2: Ml plus (1) overnight (and continuing-contract) repurchase agreements bank issuers. Travelers checks issued by depository institutions are included in (RPs) issued by all depository institutions and overnight Eurodollars issued to demand deposits. U.S. residents by foreign branches of U.S. banks worldwide, (2) money market 5. Demand deposits at commercial banks and foreign-related institutions other deposit accounts (MMDAs), (3) savings and small time deposits (time deposits— than those due to depository institutions, the U.S. government, and foreign banks including retail RPs—in amounts of less than $100,000), and (4) balances in both and official institutions, less cash items in the process of collection and Federal taxable and tax-exempt general purpose and broker-dealer money market funds. Reserve float. Excludes individual retirement accounts (IRAs) and Keogh balances at depository 6. Consists of NOW and ATS account balances at all depository institutions, institutions and money market funds. Also excludes all balances held by U.S. credit union share draft account balances, and demand deposits at thrift institucommercial banks, money market funds (general purpose and broker-dealer), tions. foreign governments and commercial banks, and the U.S. government. Season- 7. Sum of (1) overnight RPs and overnight Eurodollars, (2) money market fund ally adjusted M2 is computed by adjusting its non-Mi component as a whole and balances (general purpose and broker-dealer), (3) MMDAs, and (4) savings and then adding this result to seasonally adjusted Ml. small time deposits. M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of 8. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U.S. $100,000 or more) issued by all depository institutions, (2) term Eurodollars held residents, and (4) money market fund balances (institution-only), less a consoliby U.S. residents at foreign branches of U.S. banks worldwide and at all banking dation adjustment that represents the estimated amount of overnight RPs and offices in the United Kingdom and Canada, and (3) balances in both taxable and Eurodollars held by institution-only money market funds. tax-exempt, institution-only money market funds. Excludes amounts held by 9. Small time deposits—including retail RPs—are those issued in amounts of depository institutions, the U.S. government, money market funds, and foreign less than $100,000. All IRAs and Keogh accounts at commercial banks and thrift banks and official institutions. Also excluded is the estimated amount of overnight institutions are subtracted from small time deposits. RPs and Eurodollars held by institution-only money market funds. Seasonally 10. Large time deposits are those issued in amounts of $100,000 or more, adjusted M3 is computed by adjusting its non-M2 component as a whole and then excluding those booked at international banking facilities. adding this result to seasonally adjusted M2. 11. Large time deposits at commercial banks less those held by money market L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term funds, depository institutions, and foreign banks and official institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A16 Domestic Financial Statistics • January 1992 1.22 BANK DEBITS AND DEPOSIT TURNOVER1 Debits are in billions of dollars; turnover is ratio of debits to deposits; monthly data are at annual rates 1991 BBaannkk ggrroouupp,, oorr ttyyppee ooff ccuussttoommeerr Mar. Apr. May June July Aug. DEBITS TO Seasonally adjusted Demand deposits3 1 All insured banks 219,795.7 256,150.4 277,916.3 269,834.9 294,433.5 295,559.0 266,704.2 284,872.2 275,915.9 2 Major New York City banks 115,475.6 129,319.9 131,784.0 133,302.7 146,499.3 148,074.9 133,761.4 139,089.0 136,906.9 3 Other banks 104,320.2 126,830.5 146,132.3 136,532.2 147,934.2 147,484.1 132,942.8 145,783.2 139,009.0 4 ATS-NOW accounts4 2,478.1 2,910.5 3,349.6 3,240.3 3,820.3 3,620.2 3,460.1 3,822.8 3,659.4 5 Savings deposits 537.0 547.5 558.8 523.7 577.1 548.6 519.9 552.6 516.7 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 622.9 735.1 800.6 792.0 870.3 867.0 768.4 833.4 798.0 7 Major New York City banks 2,897.2 3,421.5 3,804.1 4,101.4 4,533.4 4,702.8 4,141.9 4,413.3 4,448.0 8 Other banks 333.3 408.3 467.7 443.0 483.4 476.6 422.3 469.8 441.4 9 ATS-NOW accounts4 13.2 15.2 16.5 15.1 17.8 16.4 15.5 16.9 15.9 10 Savings deposits 2.9 3.0 2.9 2.6 2.8 2.6 2.4 2.5 2.3 DEBITS TO Not seasonally adjusted Demand deposits3 11 All insured banks 219,790.4 256,133.2 277,400.0 275,015.8 294,492.4 292,012.3 270,144.7 286,068.7 289,049.5 12 Major New York City banks 115,460.7 129,400.1 131,784.7 134,974.7 145,700.2 145,073.9 133,851.7 139,527.4 146,342.8 13 Other banks 104,329.7 126,733.0 145,615.3 140,041.0 148,792.2 146,938.4 136,293.0 146,541.3 142,706.6 14 ATS-NOW accounts4 2,477.3 2,910.7 3,342.2 3,317.4 3,967.1 3,549.9 3,446.1 3,729.0 3,693.2 15 MMDAs6 2,342.7 2,677.1 2,923.8 2,767.2 2,994.5 2,978.6 2,714.5 2,868.0 2,751.7 16 Savings deposits 536.3 546.9 557.9 520.4 623.9 545.5 516.4 558.2 537.0 DEPOSIT TURNOVER Demand deposits3 17 All insured banks 622.8 735.4 799.6 831.9 864.8 875.5 781.7 831.4 849.5 18 Major New York City banks 2,896.7 3,426.2 3,810.0 4,378.4 4,565.4 4,742.5 4,154.4 4,334.6 4,771.4 19 Other banks 333.2 408.0 466.3 467.2 482.1 485.0 434.9 469.8 460.9 20 ATS-NOW accounts4 13.2 15.2 16.4 15.4 17.8 16.3 15.5 16.7 16.3 21 MMDAs6 6.6 7.9 8.0 7.1 7.7 7.6 6.8 7.2 6.8 22 Savings deposits 2.9 2.9 2.9 2.5 3.0 2.6 2.4 2.5 2.4 1. Historical tables containing revised data for earlier periods can 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 (NOWs) and 20551. accounts authorized for automatic transfer to demand deposits (ATSs). Data in this table also appear on the Board's G.6 (406) monthly statistical 5. Excludes MMDA, ATS, and NOW accounts. release. For ordering address, see inside 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
Commercial Banking Institutions A17 1.23 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars, averages of Wednesday figures 1990 1991 Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Seasonally adjusted 1 Total loans and securities2 2,716.6 2,723.6 2,721.2 2,735.1 2,751.0 2,751.8 2,750.5 2,763.2 2,763.3 2,761.6 2,768.9 2,784.5 2 U.S. government securities 454.0 454.2 454.1 458.0 471.4 479.2 485.1 495.2 505.3 512.6 522.1 538.2 3 Other securities 175.9 175.6 177.7 177.6 177.6 175.7 173.9 173.1 172.0 169.9 170.8 172.2 4 Total loans and leases2 2,086.7 2,093.8 2,089.4 2,099.5 2,102.0 2,096.9 2,091.5 2,094.8 2,086.0 2,079.1 2,076.0 2,074.1 5 Commercial and industrial ..... 646.5 648.1 644.3 643.9 646.0 640.0 633.2 630.4 626.7 620.5 623.8 623.8 6 Bankers acceptances held ... 7.4 7.5 7.7 6.9 6.7 6.8 6.9 6.6 6.6 7.1 6.9r 6.5 7 Other commercial and industrial 639.1 640.5 636.6 637.0 639.3 633.2 626.4 623.8 620.0 613.4 616.8 617.3 8 U.S. addressees4 634.0 635.3 631.1 631.5 633.6 627.7 620.6 617.9 614.3 607.7 6151.0.9 611.2 9 Non-U.S. addressees 5.1 5.3 5.5 5.5 5.7 5.5 5.8 5.9 5.7 5.7 6.2 10 Real estate 832.0 836.5 837.3 842.6 846.3 850.9 855.1 859.5 857.0 853.9 853.4 854.2 11 Individual 378.7 378.9 375.9 377.7 375.5 374.1 373.5 372.0 369.6 368.9 365.3 362.7 12 Security 39.6 40.6 43.1 43.2 38.9 39.8 39.8 38.3 41.6 42.6 43.9 43.8 13 Nonbank financial institutions 34.6 34.8 34.8 35.9 36.7 35.9 36.9 37.1 37.1 36.3 36.0 36.6 14 Agricultural 32.5 33.0 33.5 33.5 34.0 33.9 33.6 33.0 32.5 32.3 32.2 32.3 15 State s u a b n d d i v p is o i l o it n ic s al 34.8 34.3 33. lr X.ff 32.7r 32.0r 31.7r Sl-O"" 30.5r 30.0r 29.5 29.3 16 Foreign banks 8.1 7.2 6.0 6.1 7.2 6.8 6.4 6.0 6.2 6.3r 6.5 6.1 17 Foreign official institutions 3.2 3.2 3.0 3.1 3.2 3.0 3.0 3.0 3.1 3.1 3.2 3.3 1 1 8 9 L A e ll a s o e t - h f e i r n a l n o c a i n n s g receivables 4 3 3 2 . . 7 9 4 3 4 2. . 7 7 r 4 3 5 2. . 4 9 r 4 3 7 2. . 8 6 r 4 3 8 3 . .0 6 r 4 3 7 2 . .7 7 r 4 3 5 2 . .7 7 r 5 3 1 2 . . 9 8 1 4 3 9 2 . . 7 0 r 3513.4. 9 5 3 0 1 . . 9 2 3 50 1 . . 8 1 Not seasonally adjusted 20 Total loans and securities2 2,720.1 2,730.5 2,721.0 2,737.3 2,748.4 2,751.5 2,749.7 2,763.8 2,757.2 2,756.6 2,767.3 2,785.8 21 U.S. government securities 454.1 451.5 455.8 463.9 475.8 480.5 485.2 493.7 501.8 510.4 519.6 535.2 77 Other securities 176.6 176.3 177.9 177.3 176.9 175.1 173.8 173.2 171.3 170.1 171.0 172.4 73 Total loans and leases2 2,089.3 2,102.7 2,087.3 2,096.1 2,095.7 2,095.9 2,090.6 2,096.9 2,084.1 2,076.0 2,076.7 2,078.2 24 Commercial and industrial ..... 644.5 648.0 641.1 643.0 648.3 644.7 637.1 632.7 627.0 619.2 620.3 621.5 25 Bankers acceptances held ... 7.6 7.7 7.6 7.0 6.7 6.7 6.8 6.7 6.3r 6.9 6.9 6.6 26 Other commercial and industrial 636.9 640.3 633.4 636.0 641.6 638.1 630.3 626.0 620.6 612.3 613.4 614.9 27 U.S. addressees 631.9 635.1 628.2 630.5 636.1 632.2 624.5 620.0 614.8 606.4 607.4 608.7 28 Non-U.S. addressees 5.0 5.2 5.3 5.5 5.4 5.9 5.9 6.0 5.8 5.9 6.0 6.2 79 Real estate 834.0 837.9 837.1 839.5 842.6 848.3 854.2 859.6 857.5 855.9 855.2 856.9 30 Individual 379.8 383.8 380.1 377.1 372.8 371.5 371.8 369.9 367.4 368.1 367.0 363.6 31 Security 38.5 40.0 41.0 44.7 40.2 41.3 39.0 40.5 41.3 42.0 42.9 42.9 32 Nonbank financial institutions 35.0 36.2 35.3 35.5 36.0 35.5 36.5 37.2 36.9 36.2 35.7 36.5 33 Agricultural 32.9 32.9 32.8 32.6 32.6 32.8 33.1 33.3 33.4 33.3 33.3 33.2 34 State and political subdivisions 34.7 34.0 33.8r 33.2r 32.7r 3322..00rr 31.6r 3300^^ 30.3r 2299..99 29.5 29.2 35 Foreign banks 8.3 7.4 6.0 6.0 6.8 6.7 6.3 6.1 6.3r 6.2 6.5 6.4 36 Foreign official institutions 3.2 3.2 3.0 3.1 3.2 3.0 3.0 3.0 3.1 3.1 3.2 3.3 37 Lease-financing receivables 33.1 32.8 32.8 32.9 32.9 32.7 32.6 32.6 31.8 31.3 31.2 31.2 38 All other loans 45.4 46.6r 44.2r 48.4r 47.8r 47.4r 45.4r 51.lr 49.3r 51.01^ 51.9 53.5 1. Components may not sum to totals because of rounding. 3. Includes nonfinancial commercial paper held. 2. Adjusted to exclude loans to commercial banks in the United States. 4. United States includes the fifty states and the District of Columbia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A18 Domestic Financial Statistics • January 1992 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Billions of dollars, monthly averages 1990 1991 SSoouurrccee ooff ffuunnddss Nov. Dec. Jan. Feb. Mar. Apr. May June Julyr Aug.r Sept.r Oct. Seasonally adjusted 292^ 288.6r 278.2r 266.2r 265.6r 265.5r 263.4r 254.4r 254.3 249.0 254.1 267.6 2 Net balances due to related foreign offices 30.1 34.6 33.5 24.9 30.2 30.8 26.1 19.2 19.3 17.0 19.8 30.7 3 Borrowings from other than commercial banks 262.8r 254.0r 244.7r 241.3r 235.4r 234.7r 237.3r 235.2r 235.0 232.1 234.4 236.9 195.5r 187.8r 183.0r 178.0r 172.5r 172.4r 171.8r 170.6r 169.6 163.9 165.4 163.5 67.3 66.2 61.7 63.3 62.9 62.2 65.5 64.6 65.4 68.2 69.0 73.4 Not seasonally adjusted 294. r 283.0r 273.5r 269.2r 270.8r 266.2r 271.4r 257.5r 251.1 247.5 250.1 264.7 7 Net balances due to related foreign offices3 .... 30.8 37.2 33.2 24.8 29.6 28.9 28.6 19.5 16.9 16.4 19.9 30.2 .6 -4.1 —15.3r -15.2 -6.0 -3.5 -.7 -3.5 -7.2 -7.5 -9.1 -7.7 30.2 41.3 48.4 40.0 35.6 32.5 29.3r 23.0 24.2 23.9 29.0 37.9 10 Borrowings from other than commercial banks in United States 263.3r 245.9r 240.4r 244.4r 241.2r 237.3r 242.8r 238.0r 234.1 231.2 230.2 234.5 198. lr 183.5r 178.5r 180.3r 176.9r 173.2r 176.6r 171.6r 167.5 163.5 162.6 162.0 12 Federal funds and security RP 195.3r 180.7r 175.2r 177.5r 173.6r 170.4r 173.8r 168.7r 164.3 159.8 159.1 158.8 13 Other5 2.9 2.8 3.2 2.8 3.2 2.9 2.8 2.8 3.2 3.7 3.5 3.2 65.1 62.3 61.9 64.1 64.3 64.1 66.2 66.4 66.6 67.7 67.6 72.6 MEMO Gross large time deposits 435.2 431.8 441.0 450.6 451.0 451.3 453.0 451.9 447.6 447.2 443.9 435.0 437.8 431.8 439.3 449.2 450.5 449.0 452.6 451.4 446.4 448.2 445.7 437.3 U.S. Treasury demand balances at commercial banks8 25.2 24.4 25.7 33.4 33.8 21.7 15.1 23.2 20.5 23.8 21.9 31.3 19.2 23.0 29.4 39.3 28.4 20.4 19.8 23.6 20.7 17.2 26.9 2288..99 1. Commercial banks are nationally and state-chartered banks in the fifty states given for the purpose of borrowing money for the banking business. This includes and the District of Columbia, agencies and branches of foreign banks, New York borrowings from Federal Reserve Banks and from foreign banks, term federal investment companies majority owned by foreign banks, and Edge Act corpora- funds, loan RPs, and sales of participations in pooled loans. tions owned by domestically chartered and foreign banks. 5. Figures are based on averages of daily data reported weekly by approxi- Data in this table also appear in the Board's G.10 (411) release. For ordering mately 120 large banks and quarterly or annual data reported by other banks. address, see inside front cover. 6. Figures are partly averages of daily data and partly averages of Wednesday 2. Includes federal funds, repurchase agreements (RPs), and other borrowing 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 International Banking Facilities (IBFs). mercial banks. Averages of daily data. 4. Borrowings through any instrument, such as a promissory note or due bill, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Commercial Banking Institutions A19 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKS Last-Wednesday-of-Month Series1 Billions of dollars 1990 1991 AAccccoouunntt Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. ALL COMMERCIAL BANKING INSTITUTIONS2 1 Total assets 3,399.9 3,357.8 3,388.9 3,380.1 3,368.5 3,410.3 3,409.2 3,438.5 3,397.3 3,423.0 3,461.6 7 Loans and securities 2,936.9 2,908.7 2,924.9 2,910.9 2,907.3 2,921.8 2,936.3 2,937.7 2,921.0 2,939.3 2,970.5 3 Investment securities 605.6 612.8 614.0 628.3 628.5 634.1 640.8 648.7 650.9 657.6 681.9 4 U.S. government securities 439.6 447.6 449.5 463.3 465.1 471.8 480.1 489.9 492.8 449988..88 522.1 5 Other 166.0 165.2 164.5 165.1 163.4 162.2 160.7 158.8 158.1 115588..88 159.8 6 Trading account assets 22.0 24.1 26.9 23.5 24.9 24.3 27.5 30.2 28.5 29.9 32.6 7 Total loans 2,309.3 2,271.8 2,283.9 2,259.1 2,253.8 2,263.4 2,268.0 2,258.8 2,241.5 2,251.8 2,255.9 8 Interbank loans 204.0 193.3 185.0 171.8 160.7 172.5 166.8 175.9 167.5 172.4 178.6 9 Loans excluding interbank 2,105.3 2,078.6 2,099.0 2,087.3 2,093.1 2,090.9 2,101.3 2,082.9 2,074.1 2,079.4 2,077.4 10 Commercial and industrial 650.8 637.2 645.1 648.5 643.6 635.1 632.4 624.2 617.8 620.0 618.5 11 Real estate 838.3 836.9 840.1 842.5 849.2 855.4 859.3 856.0 854.8 854.7 858.8 1? Individual 384.7 378.6 376.4 371.5 372.0 370.7 369.8 368.3 368.2 366.7 363.7 13 All other 231.5 225.9 237.4 224.8 228.3 229.6 239.8 234.3 233.3 238.0 236.3 14 Total cash assets 217.9 199.2 204.5 206.1 201.0 224.3 212.3 214.1 200.1 207.1 210.3 15 Reserves with Federal Reserve Banks .. 23.4 16.5 18.1 25.0 23.1 26.2 29.1 24.8 23.0 25.7 25.6 16 Cash in vault 32.0 30.4 29.8 28.9 29.1 31.1 29.8 29.7 31.1 30.1 30.7 17 Cash items in process of collection ... 86.0 74.7 79.9 76.9 74.3 87.2 78.3 87.8 71.7 75.3 75.2 18 Demand balances at U.S. depository institutions 29.6 28.1 27.7 27.6 26.4 30.8 28.3 26.9 2277..77 2266..99 2288..88 19 Other cash assets 46.8 49.6 49.0 47.7 48.1 49.0 46.8 45.0 46.5 49.2 50.1 20 Other assets 245.1 249.9 259.6 263.1 260.1 264.2 260.6 286.7 276.2 276.5 280.9 ?1 Total liabilities 3,176.4 3,133.2 3,162.7 3,153.1 3,140.4 3,180.7 3,180.3 3,210.6 3,168.9 3,194.0 3,232.7 ?? Total deposits 2,363.4 2,334.6 2,365.0 2,382.5 2,381.9 2,413.3 2,406.1 2,448.8 2,430.9 2,430.3 2,443.7 7.3 Transaction accounts 637.1 587.9 594.1 602.8 601.3 617.6 611.2 639.4 612.0 613.7 628.0 24 Savings deposits (excluding checkable) 573.3 573.9 583.5 594.1 595.4 606.2 661100..77 661199..99 662244..11 662288..22 664400..00 75 Time deposits 1,152.9 1,172.8 1,187.3 1,185.6 1,185.3 1,189.5 1,184.2 1,189.5 1,194.7 1,188.4 1,175.7 76 Borrowings 548.7 529.8 515.4 492.3 494.6 499.8 510.4 503.5 480.9 498.5 512.6 77 Other liabilities 264.4 268.8 282.3 278.2 263.9 267.6 263.8 258.4 257.1 265.2 276.4 28 Residual (assets less liabilities)3 223.5 224.6 226.2 227.0 228.1 229.6 228.9 227.9 228.4 229.0 228.9 DOMESTICALLY CHARTERED COMMERCIAL BANKS4 ?9 3,010.3 2,961.4 2,986.3 2,980.4 2,962.4 2,993.7 2,989.4 3,009.9 2,973.4 2,985.2 3,011.6 30 2,654.2 2,628.0 2,642.3 2,635.6 2,629.1 2,638.0 2,645.8 2,653.4 2,637.8 2,645.4 2,660.9 31 Investment securities 570.5 575.3 577.4 588.6 592.3 595.7 602.7 611.0 612.1 618.1 636.2 37 U.S. government securities 421.7 426.5 429.3 440.2 445.5 449.2 457.8 467.9 470.2 475.6 492.9 33 Other 148.8 148.7 148.2 148.5 146.8 146.5 144.9 143.0 141.9 142.5 143.3 34 Trading account assets 22.0 24.1 26.9 23.5 24.9 24.3 27.5 30.2 28.5 29.9 32.6 35 Total loans 2,061.7 2,028.6 2,038.0 2,023.5 2,011.9 2,018.0 2,015.6 2,012.3 1,997.1 1,997.4 1,992.1 36 Interbank loans 160.0 151.7 150.9 148.3 134.2 144.5 139.0 150.4 146.4 148.0 149.2 37 Loans excluding interbank 1,901.7 1,876.9 1,887.0 1,875.2 1,877.7 1,873.5 1,876.6 1,861.8 1,850.7 1,849.3 1,842.9 38 Commercial and industrial 512.7 504.2 508.4 506.3 502.4 495.0 491.2 482.6 475.3 472.6 470.7 39 Real estate 796.4 794.0 797.1 799.7 804.9 808.9 812.1 808.2 806.9 806.9 810.3 40 Revolving home equity 61.7 62.9 63.3 63.6 64.4 65.7 66.6 67.0 67.6 68.7 69.3 41 Other real estate 734.7 731.1 733.8 736.1 740.3 743.0 743.7 741.2 739.4 738.2 741.1 4? Individual 384.7 378.6 376.4 371.5 372.0 370.7 369.8 368.3 368.2 366.7 363.7 43 All other 207.9 200.2 205.1 197.7 198.4 198.8 203.6 202.6 200.2 203.1 198.1 44 Total cash assets 188.3 166.6 172.7 177.0 171.6 193.6 184.3 187.6 172.3 177.0 179.7 45 Reserves with Federal Reserve Banks. 23.0 15.3 17.0 24.0 21.9 25.8 28.3 23.9 22.1 24.9 25.0 46 Cash in vault 32.0 30.3 29.8 28.8 29.1 31.1 29.8 29.7 31.0 30.1 30.6 47 Cash items in process of collection ... 83.9 72.9 78.2 74.9 72.6 85.5 76.2 86.1 70.1 73.8 73.4 48 Demand balances at U.S. depository 27.6 26.2 25.8 25.8 24.8 28.8 2266..55 2255..22 2255..99 2244..99 2277..00 49 Other cash assets 21.8 22.0 21.9 23.4 23.2 22.4 23.6 22.8 23.2 23.4 23.8 50 Other assets 167.8 166.9 171.3 167.9 161.6 162.1 159.3 168.9 163.4 162.9 170.9 51 Total liabilities 2.790.5 2,740.5 2,763.7 2,757.0 2,737.9 2,767.7 2,764.1 2,785.7 2,748.6 2,759.8 2,786.3 5? 2.283.5 2,236.2 2,255.2 2,266.2 2,258.8 2,280.8 2,271.3 2,308.6 2,284.9 2,282.0 2,296.5 53 Transaction accounts 626.1 577.4 583.8 592.2 591.4 607.5 600.9 629.3 602.1 604.0 618.1 54 Savings deposits (excluding 570.0 570.6 580.2 590.6 591.9 602.5 660077..11 661166..22 662200..44 662244..55 663366..22 55 1,087.4 1,088.1 1,091.2 1,083.4 1,075.6 1,070.8 1,063.4 1,063.1 1,062.5 1,053.5 1,042.2 56 375.6 380.1 371.8 354.9 346.5 355.1 364.4 352.2 338.8 355.6 359.9 57 Other liabilities 131.4 124.2 136.8 136.0 132.6 131.9 128.4 124.9 125.0 122.3 129.9 58 Residual (assets less liabilities)3 219.8 220.9 222.6 223.4 224.5 226.0 225.3 224.2 224.8 225.4 225.3 1. Back data are available from the Banking and Monetary Statistics Section, State foreign investment corporations. Data are estimates for the last Wednesday Board of Governors of the Federal Reserve System, Washington, D.C., 20551. of the month based on a sample of weekly-reporting foreign-related institutions Data in this table also appear in the Board's H.8 (510) weekly statistical release. and quarter-end condition reports. Data are partly estimated. They include all bank-premises subsidiaries and 3. This balancing item is not intended as a measure of equity capital for use in other significant majority-owned domestic subsidiaries. Components may not sum capital adequacy analysis. to totals because of rounding. 4. Includes all member banks and insured nonmember banks. Loans and 2. Includes insured domestically chartered commercial banks, agencies and securities data are estimates for the last Wednesday of the month based on a branches of foreign banks, Edge act and agreement corporations, and New York sample of weekly-reporting banks and quarter-end condition reports. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A20 Domestic Nonfinancial Statistics • January 1992 1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY-REPORTING COMMERCIAL BANKS1 Millions of dollars, Wednesday figures 1991 AAccccoouunntt Sept. 4 Sept. llr Sept. 18 Sept. 25r Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30 ASSETS 1 Cash and balances due from depository institutions 125,484 97,077 110,526 102,129 104,010 97,577 125,112 97,317 102,544 2 U.S. Treasury and government securities 210,123 211,020 210,837 207,913 213,614 216,268 218,260 217,997 220,131 3 Trading account 19,724 20,717 20,920 18,006 19,214 21,312 21,133 20,376 18,924 4 Investment account 190,399 190,304 189,917 189,907 194,400 194,956 197,127 197,622 201,207 5 Mortgage-backed securities2 78,276 78,122 77,978 78,014 78,496 78,326 78,736 77,551 78,868 All others, by maturity 6 One year or less 25,245 25,154 25,615 25,152 25,328 25,736 25,892 25,721 25,966 7 One year through five years 46,602 46,447 46,790 46,939 47,942 48,391 49,753 49,847 50,637 8 More than five years 40,277 40,580 39,533 39,801 42,634 42,503 42,745 44,502 45,736 9 Other securities 56,795 56,815 56,845 56,430 56,655 56,623 56,423 56,330 56,399 10 Trading account 1,439 1,528 1,586 1,659 1,350 1,285 1,216 1,289 1,313 11 Investment account 55,356 55,287 55,258 54,771 55,305 55,338 55,207 55,041 55,086 12 State and political subdivisions, by maturity 24,848 24,820 24,769 24,455 24,020 23,986 23,942 23,694 23,630 13 One year or less 3,040 3,045 3,025 2,979 2,998 3,009 2,968 2,935 2,951 14 More than one year 21,807 21,775 21,744 21,476 21,022 20,977 20,973 20,759 20,679 15 Other bonds, corporate stocks, and securities 30,508 30,468 30,489 30,316 31,285 31,353 31,265 31,347 31,456 16 Other trading account assets 11,020 9,951 10,222 10,228 10,673 11,148 12,109 11,738 12,383 17 Federal funds sold3 83,194 81,164 84,646 84,150 92,205 83,169 90,638 73,452 79,855 18 To commercial banks in the United States 59,642 55,127 57,729 54,869 64,828 55,866 66,658 49,200 55,329 19 To nonbank brokers and dealers 18,832 20,354 21,612 23,683 22,869 23,603 20,252 20,095 20,108 20 To others 4,720 5,683 5,305 5,598 4,508 3,700 3,728 4,157 4,418 21 Other loans and leases, gross 1,013,646 1,008,707 1,011,151r 1,006,456 1,008,319 1,003,995 1,008,630 1,001,952 1,003,616 22 Commercial and industrial 299,938 298,358 300,357r 297,304 299,855 297,992 299,160 296,571 295,616 23 Bankers acceptances and commercial paper 1,827 1,832 l,738r 1,616 1,630 1,643 1,659 1,684 1,715 24 All other 298,111 296,527 298,619" 295,688 298,225 296,349 297,501 294,886 293,901 25 U.S. addressees 296,519 295,020 296,983r 294,151 296,546 294,752 295,813 293,192 292,312 26 Non-U.S. addressees 1,592 1,507 1,636 1,537 1,679 1,597 1,688 1,694 1,589 27 Real estate loans 398,267 398,827 397,490r 396,315 396,320 396,445 396,442 396,072 396,182 28 Revolving, home equity 38,727 38,911 39,024 38,999 39,156 39,179 39,269 39,328 39,371 29 All other 359,540 359,915 358,466r 357,315 357,163 357,266 357,173 356,743 356,812 30 To individuals for personal expenditures 183,922 184,020 183,129r 183,474 182,439 181,786 181,700 181,762 182,200 31 To financial institutions 44,655 44,297 44,077r 44,153 45,658 44,334 43,918 43,697 44,266 32 Commercial banks in the United States 19,928 20,380 20,283 20,179 20,683 19,627 18,899 19,311 19,837 33 Banks in foreign countries 2,243 1,634 l,734r 2,173 1,936 2,043 2,388 2,347 1,851 34 Nonbank financial institutions 22,484 22,282 22,060" 21,802 23,040 22,664 22,631 22,039 22,578 35 For purchasing and carrying securities 13,262 11,768 13,263 12,682 11,121 11,598 13,771 12,358 13,732 36 To finance agricultural production 6,176 6,174 6,195 6,209 6,209 6,211 6,178 6,133 6,120 37 To states and political subdivisions 18,401 18,351 18,322r 18,342 18,232 18,182 18,211 18,156 18,091 38 To foreign governments and official institutions 1,036 969 1,070 989 979 1,053 1,005 956 1,006 39 All other loans 22,444 20,457 21,768r 21,513 21,825 20,717 22,485 20,906 21,030 40 Lease-financing receivables 25,544 25,486 25,480 25,475 25,680 25,676 25,761 25,341 25,372 41 LESS: Unearned income 3,682 3,681 3,672 3,645 3,521 3,519 3,518 3,401 3,415 42 Loan and lease reserve6 37,705 37,768 37,676 37,071 37,487 37,165 36,382 36,368 36,419 43 Other loans and leases, net 972,259 967,258 969,802 965,739 967,311 963,311 968,729 962,182 963,783 44 Other assets 152,245 150,707 150,327r 150,307 155,615 153,666 152,753 151,905 155,442 45 Total assets 1,611,121 1,573,992 l,593,206r 1,576,896 1,600,083 1,581,761 1,624,024 1,570,921 1,590,536 Footnotes appear on the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Weekly Reporting Commercial Banks A21 1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS—Continued Millions of dollars, Wednesday figures 1991 AAccccoouunntt Sept. 4 Sept. llr Sept. 18 Sept. 25r Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30 LIABILITIES 46 Deposits 1,130,680 1,105,825 1,102,444 1,092,582 1,111,497 1,100,637 1,126,627 1,087,100 1,093,777 47 Demand deposits 240,578 218,340 222,648 218,205 231,452 219,438 247,207 213,710 221,954 48 Individuals, partnerships, and corporations 191,159 178,162 177,613 173,949 186,121 178,993 195,689 172,770 178,068 49 Other holders 49,419 40,178 45,034 44,256 45,331 40,445 51,518 40,941 43,886 50 States and political subdivisions 7,103 6,066 7,592 7,304 7,252 6,563 7,417 7,109 6,995 51 U.S. government 1,788 2,134 3,524 1,611 2,213 1,344 2,583 1,392 1,634 52 Depository institutions in the United States 24,383 19,183 19,871 19,226 21,033 18,522 24,830 18,575 20,594 53 Banks in foreign countries 5,361 4,797 5,044 5,209 4,862 4,851 5,399 4,739 4,572 54 Foreign governments and official institutions 641 516 590 573 575 473 674 615 594 55 Certified and officers' checks 10,143 7,481 8,414 10,332 9,3% 8,692 10,615 8,510 9,498 56 Transaction balances other than demand deposits 96,650 94,352 92,994r 89,671 94,272 93,750 93,887 91,527 91,733 57 Nontransaction balances 793,452 793,133 786,802r 784,706 785,773 787,449 785,534 781,863 780,090 58 Individuals, partnerships, and corporations 759,202 758,839 753,052r 751,609 753,520 755,013 753,553 750,043 748,628 59 Other holders 34,250 34,294 33,749 33,097 32,252 32,437 31,981 31,819 31,462 60 States and political subdivisions 27,974 27,946 27,412 27,238 26,753 26,818 26,438 26,393 26,022 61 U.S. government 1,099 1,139 1,156 1,153 1,101 1,148 1,156 1,141 1,152 62 Depository institutions in the United States 4,740 4,761 4,733 4,291 3,975 4,052 3,973 3,873 3,876 63 Foreign governments, official institutions, and banks .... 437 448 449 416 423 419 415 412 411 64 Liabilities for borrowed money6 272,893 258,565 283,002 275,437 279,601 266,018 282,861 270,004 281,121 65 Borrowings from Federal Reserve Banks 388 520 548 0 0 0 90 10 10 66 Treasury tax and loan notes 8,072 8,716 26,517r 29,122 25,240 14,471 17,747 23,314 28,030 67 Other liabilities for borrowed money 264,433 249,329 255,937r 246,316 254,361 251,547 265,023 246,680 253,081 68 Other liabilities (including subordinated notes and debentures) 93,433 95,424 93,252r 94,627 94,582 99,685 99,606 98,430 101,216 69 Total liabilities 1,497,007 1,459,814 L,478,698R 1,462,645 1,485,681 1,466,339 1,509,094 1,455,534 1,476,114 70 Residual (total assets less total liabilities)8 114,114 114,178 114,507r 114,250 114,402 115,422 114,929 115,387 114,422 MEMO 71 Total loans and leases, gross, adjusted, plus securities .. 1,295,209 1,292,150 l,295,689r 1,290,129 1,295,955 1,295,710 1,300,502 1,292,958 1,297,217 72 Time deposits in amounts of $100,000 or more 184,196 183,028 180,738r 178,750 177,268 177,949 175,607 174,614 172,697 73 Loans sold outright to affiliates10 1,625 1,591 1,587r 1,586 1,491 1,470 1,490 1,472 1,465 74 Commercial and industrial 927 913 914r 914 821 799 826 805 798 75 Other 698 678 673r 673 670 671 664 667 666 76 Foreign branch credit extended to U.S. residents11 23,477 23,440 23,676r 23,770 24,122 24,274 24,239 23,881 23,981 77 Net due to related institutions abroad -8,743 -6,409 -8,054r -9,117 -11,812 -6,574 -4,769 -6,571 -4,937 1. Components may not sum to totals because of rounding. the United States. 2. Includes certificates of participation, issued or guaranteed by agencies of the 10. Affiliates include a bank's own foreign branches, nonconsolidated nonbank U.S. government, in pools of residential mortgages. affiliates of the bank, the bank's holding company (if not a bank), and noncon- 3. Includes securities purchased under agreements to resell. solidated nonbank subsidiaries of the holding company. 4. Includes allocated transfer risk reserve. 11. Credit extended by foreign branches of domestically chartered weekly- 5. Includes negotiable order of withdrawal (NOW), automatic transfer service reporting banks to nonbank U.S. residents. Consists mainly of commercial and (ATS), and telephone and preauthorized transfer savings deposits. industrial loans, but includes an unknown amount of credit extended to other than 6. Includes borrowings only from other-than-directly-related institutions. nonfinancial businesses. 7. Includes federal funds purchased and securities sold under agreements to NOTE. Data that formerly appeared in table 1.28, Assets and Liabilities of Large repurchase. Weekly Reporting Commercial Banks in New York City, can be obtained from the 8. This balancing item is not intended as a measure of equity capital for use in Board's H.4.2 (504) weekly statistical release. For ordering address see inside capital-adequacy analysis. front cover. 9. Excludes loans to and federal funds transactions with commercial banks in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A22 Domestic NonfinancialS tatistics • January 1992 1.30 LARGE WEEKLY-REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS Assets and Liabilities1 Millions of dollars, Wednesday figures 1991 AAccccoouunntt Sept. 4 Sept. 11 Sept. 18 Sept. 25 Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30 1 Cash and balances due from depository institutions 16,039 16,054 16,125 16,792 15,862 16,473 15,934 16,820 16,898 2 U.S. Treasury and government agency securities 15,108 15,099 14,720 14,959 16,325 16,557 17,431 1188,,113388 1188,,888800 3 Other securities 7,526 7,545 7,445 7,544 7,496 7,361 7,537 7,426 7,589 4 Federal funds sold1 7,466 8,667 9,475 9,417 7,925 7,746 11,604 10,974 12,858 To commercial banks in the United States ... 3,051 3,840 5,274 3,638 3,420 2,448 4,607 3,794 5,983 6 To others 4,416 4,827 4,201 5,779 4,505 5,299 6,998 7,180 6,874 7 Other loans and leases, gross 139,078 140,208 142,573 143,957 143,949 143,122 145,221 144,542 145,233 8 Commercial and industrial 85,017r 85,128r 86,148r 87,206r 87,965 87,913 88,640 88,347 88,036 9 Bankers acceptances and commercial paper 2,226 2,299 2,106 2,122 1,948 2,144 2,115 1,824 1,862 10 All other 82,791r 82,829" 84,042r 85,084r 86,017 85,769 86,526 86,523 86,174 11 U.S. addressees 80,605r 80,645r 81,844r 82,945r 83,810 83,547 84,242 84,315 83,886 1? Non-U.S. addressees 2,186r 2,183r 2,198r 2,140" 2,207 2,222 2,284 2,208 2,288 13 Loans secured by real estate 32,727 32,756 32,779 32,809 32,759 32,738 33,049 33,166 33,321 14 To financial institutions 16,431 17,366 17,190 18,051 17,612 17,043 17,079 16,831 17,642 15 Commercial banks in the United States.. 7,756r 8,017r 7,980" 9,006r 8,546 8,084 7,603 7,506 8,093 16 Banks in foreign countries 2,059 2,219 2,303 2,000 2,113 2,018 1,894 1,894 1,930 17 Nonbank financial institutions 6,616r 7,130" 6,907r 7,045r 6,953 6,941 7,583 7,431 7,620 18 For purchasing and carrying securities .... 2,675 2,742 4,329 3,688 3,297 3,188 3,965 3,772 3,803 19 To foreign governments and official 338r 337r 352r 377r 337788 394 339988 440099 339955 70 All other 1,889 1,879 1,775 1,826 1,938 1,847 2,090 2,017 2,037 21 Other assets (claims on nonrelated parties) .. 28,638 28,351 27,934 29,030 28,451 28,864 28,844 29,325 30,572 22 Total assets3 257,676 257,310 260,436 260,902 262,365 259,260 263,018 262,248 269,027 23 Deposits or credit balances due to other than directly related institutions 93,788 93,481 95,797 98,151 96,490 92,589 89,147 90,106 93,755 24 Demand deposits4 3,756 3,681 3,992 3,714 3,545 3,951 3,689 3,760 3,464 25 Individuals, partnerships, and corporations 2,308 2,342 2,428 2,365 2,291 2,121 2,366 2,180 2,221 76 Other 1,448 1,339 1,564 1,349 1,254 1,830 1,323 1,580 1,243 27 Nontransaction accounts 90,032 89,799 91,805 94,437 92,945 88,638 85,457 86,346 90,291 28 Individuals, partnerships, and corporations 65,358 65,556 66,259 68,436 66,504 63,228 62,191 63,100 65,562 79 Other 24,675 24,243 25,546 26,001 26,441 25,410 23,267 23,246 24,729 30 Borrowings from other than directly related institutions 93,590 95,538 89,843 87,664 93,470 93,593 98,135 95,691 94,461 31 Federal funds purchased 50,832 51,030 47,680 42,081 48,691 50,862 54,398 53,269 50,231 37, From commercial banks in the United States 23,323 22,260 19,792 16,372 21,151 18,869 23,172 17,210 18,867 33 27,509 28,770 27,888 25,709 27,540 31,993 31,226 36,058 31,364 34 Other liabilities for borrowed money 42,758 44,508 42,163 45,583 44,780 42,731 43,736 42,422 44,230 35 To commercial banks in the United States 13,383r 14,216r 13,637r 14,355r 14,559 13,115 13,660 12,453 13,302 36 To others 29,375r 30,291r 28,526r 31,228r 30,221 29,615 30,076 29,969 30,928 37 Other liabilities to nonrelated parties 27,191 26,623 26,575 27,791 27,544 28,769 28,021 29,247 30,027 38 Total liabilities6 257,676 257,310 260,436 260,902 262,365 259,260 263,018 262,248 269,027 39 T M o E t M al O l oans (gross) and securities, adjusted7.. 158,372r 159,661r 160,959r 163,232r 163,730 164,255 169,583 169,781 170,484 40 Net due to related institutions abroad -712 283 6,058 8,092 2,504 5,172 11,268 12,181 13,786 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 to related institutions abroad for U.S. branches and agencies of 3. Includes net due from related institutions abroad for U.S. branches and 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 United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Financial Markets A23 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING1 Millions of dollars, end of period 1991 IItteemm 1986 1987 1988 1989 1990 Dec. Dec. Dec. Dec. Dec. Apr. May June July Aug. Sept. Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 331,316 358,997 458,464 530,123 566,688 542,603r 534,097r 534,561r 544,048r 536,936r 531,886 Financial companies2 Dealer-placed paper 2 Total 101,707 102,742 159,777 186,343 218,953 212,373r 206,500" 220033,,113399rr 205,099r 208,159* 211,821 3 Bank-related (not seasonally adjusted)4 •, 2,265 1,428 1,248 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Directly placed paper 4 Total 151,897 174,332 194,931 212,640 220011,,886622 118844,,770033 183,383 118899,,551122 119933,,669999 119900,,665599 118888,,338822 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 companies6 77,712 81,923 103,756 131,140 145,873 145,527r 144,214r 141,910r 145,250" 138,118r 131,683 Bankers dollar acceptances (not seasonally adjusted)7 7 Total 64,974 70,565 66,631 62,972 54,771 47,086 46,438 45,539 44,756 44,228 43,462 Holder 8 Accepting banks 13,423 10,943 9,086 9,433 9,017 8,593 10,138 10,028 9,081 9,622 10,174 9 Own bills 11,707 9,464 8,022 8,510 7,930 7,599 8,179 8,414 7,906 7,826 8,237 10 Bills bought 1,716 1,479 1,064 924 1,087 994 1,959 1,613 1,175 1,795 1,937 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 1,066 918 934 1,053 1,203 1,274 1,665 1,678 13 Others 50,234 58,658 56,052 52,473 44,836 37,559 35,247 34,308 34,401 32,941 31,610 Basis 14 Imports into United States 14,670 16,483 14,984 15,651 13,096 12,511 12,821 13,431 12,728 12,968 12,876 15 Exports from United States 12,960 15,227 14,410 13,683 12,703 11,219 11,511 11,416 11,468 11,044 10,966 16 All other 37,344 38,855 37,237 33,638 28,973 23,356 22,106 20,691 20,561 20,215 19,620 1. Components may not sum to totals because of rounding. 6. Includes public utilities and firms engaged primarily in such activities as 2. Institutions engaged primarily in commercial, savings, and mortgage bank- communications, construction, manufacturing, mining, wholesale and retail trade, ing; sales, personal, and mortgage financing; factoring, finance leasing, and other transportation, and services. business lending; insurance underwriting; and other investment activities. 7. Data on bankers acceptances are gathered from institutions whose accep- 3. Includes all financial-company paper sold by dealers in the open market. tances total $100 million or more annually. The reporting group is revised every 4. Bank-related series were discontinued in January 1989. January. In January 1988, the group was reduced from 155 to 111 institutions. The 5. As reported by financial companies that place their paper directly with current group, totaling approximately 100 institutions, accounts for more than 90 investors. percent of total acceptances activity. 1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans Percent per year Period Av r e a r te a ge Period Av r e a r te a ge Period 8.75 1988 9.32 1989— Jan. 10.50 1990—June .. 8.50 1989 10.87 Feb. 10.93 July .. 9.00 1990 10.01 Mar. 11.50 Aug. . 9.50 Apr. 11.50 Sept. .. 10.00 1988—Jan. 8.75 May 11.50 Oct. ... 10.50 Feb. 8.51 June 11.07 Nov. .. Mar. 8.50 ,lulv 10.98 Dec. .. 11.00 Apr. 8.50 Aug. 10.50 11.50 May 8.84 Sept. 10.50 1991—Jan. ... 11.00 June 9.00 Oct. 10.50 Feb. .. 10.50 July 9.29 Nov. 10.50 Mar. .. Aug. 9.84 Dec. 10.50 Apr. .. 10.00 Sept. 10.00 May ... Oct. 10.00 1990— Jan. 10.11 June .. 9.50 Nov. 10.05 Feb. 10.00 July ... 9.00 Dec. 10.50 Mar. 10.00 Aug. .. 8.50 Apr. 10.00 Sept. .. 8.00 May 10.00 Oct. ... 7.50 Nov. .. 1. Data in this table also appear in the Board's H.15 (519) weekly and G.13 (415) monthly statistical releases. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A24 Domestic Nonfinancial Statistics • January 1992 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 July Aug. Sept. Oct. Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 MONEY MARKET INSTRUMENTS 1 Federal funds1,2,3 7.57 9.21 8.10 5.82 5.66 5.45 5.21 5.29 5.33 5.19 5.28 5.24 2 Discount window borrowing2,4 6.20 6.93 6.98 5.50 5.50 5.20 5.00 5.00 5.00 5.00 5.00 5.00 Commercial paper3'5,6 3 1-month 7.58 9.11 8.15 5.98 5.72 5.57 5.29 5.51 5.44 5.25 5.27 5.28 4 3-month 7.66 8.99 8.06 6.05 5.72 5.57 5.35 5.52 5.48 5.33 5.33 5.34 5 6-month 7.68 8.80 7.95 6.14 5.76 5.59 5.33 5.55 5.48 5.31 5.32 5.33 Finance paper, directly placed3,5,7 6 1-month 7.44 8.99 8.00 5.86 5.58 5.43 5.18 5.37 5.30 5.14 5.15 5.18 7 3-month 7.38 8.72 7.87 5.89 5.56 5.33 5.19 5.26 5.19 5.19 5.18 5.23 8 6-month 7.14 8.16 7.53 5.81 5.50 5.34 5.12 5.26 5.21 5.11 5.12 5.12 Bankers acceptances3,5,8 9 3-month 7.56 8.87 7.93 5.89 5.54 5.38 5.21 5.32 5.31 5.21 5.17 5.24 10 6-month 7.60 8.67 7.80 5.97 5.55 5.42 5.15 5.39 5.25 5.15 5.13 5.18 Certificates qf deposit, secondary marker9 11 1-month 7.59 9.11 8.15 5.92 5.64 5.47 5.23 5.40 5.31 5.21 5.22 5.23 12 3-month 7.73 9.09 8.15 5.98 5.65 5.47 5.33 5.41 5.43 5.32 5.31 5.33 13 6-month 7.91 9.08 8.17 6.25 5.79 5.60 5.32 5.57 5.43 5.32 5.30 5.33 14 Eurodollar deposits, 3-month3,10 7.85 9.16 8.16 6.01 5.65 5.50 5.34 5.44r 5.46 5.33 5.33 5.35 U.S. Treasury bills Secondary market3,5 15 3-month 6.67 8.11 7.50 5.58 5.33 5.22 4.99 5.16 5.07 5.01 5.00 5.01 16 6-month 6.91 8.03 7.46 5.70 5.39 5.25 5.04 5.20 5.11 5.06 5.03 5.08 17 1-year 7.13 7.92 7.35 5.91 5.45 5.26 5.04 5.20 5.11 5.07 5.04 5.09 Auction average ' • 18 3-month 6.68 8.12 7.51 5.58 5.39 5.25 5.03 5.18 5.11 5.04 4.99 5.04 19 6-month 6.92 8.04 7.47 5.71 5.47 5.29 5.08 5.23 5.14 5.08 5.03 5.11 20 1-year 7.17 7.91 7.36 6.00 5.62 5.26 5.12 5.26 n.a. n.a. n.a. 5.12 U.S. TREASURY NOTES AND BONDS Constant maturities12 21 1-year 7.65 8.53 7.89 6.31 5.78 5.57 5.33 5.50 5.40 5.36 5.33 5.39 22 2-year 8.10 8.57 8.16 6.92 6.43 6.18 5.91 6.09 5.97 5.93 5.90 5.98 23 3-year 8.26 8.55 8.26 7.38 6.80 6.50 6.23 6.38 6.26 6.23 6.21 6.30 24 5-year 8.47 8.50 8.37 7.91 7.43 7.14 6.87 7.04 6.88 6.85 6.85 6.96 25 7-year 8.71 8.52 8.52 8.15 7.74 7.48 7.25 7.37 7.26 7.22 7.19 7.34 26 10-year 8.85 8.49 8.55 8.27 7.90 7.65 7.53 7.55 7.45 7.48 7.50 7.66 27 30-year 8.96 8.45 8.61 8.45 8.14 7.95 7.93 7.88 7.82 7.88 7.93 8.07 Composite13 28 Over 10 years (long-term) 8.98 8.58 8.74 8.50 8.17 7.96 7.88 7.88 7.80 7.85 7.86 7.99 STATE AND LOCAL NOTES AND BONDS Moody's series14 29 Aaa 7.36 7.00 6.96 6.82 6.62 6.51 6.28 6.43 6.32 6.22 6.21 6.35 30 Baa 7.83 7.40 7.29 7.18 6.95 6.87 6.70 6.86 6.76 6.68 6.70 6.73 31 Bond Buyer series15 7.68 7.23 7.27 7.05 6.90 6.80 6.68 6.73 6.64 6.66 6.67 6.73 CORPORATE BONDS 32 Seasoned issues, all industries16 10.18 9.66 9.77 9.42 9.16 9.03 8.99 8.98 8.92 8.95 8.97 9.08 Rating group 33 Aaa 9.71 9.26 9.32 9.00 8.75 8.61 8.55 8.56 8.49 8.50 8.54 8.63 34 Aa 9.94 9.46 9.56 9.25 8.99 8.86 8.83 8.82 8.77 8.78 8.81 8.92 35 A 10.24 9.74 9.82 9.51 9.26 9.11 9.08 9.08 9.02 9.07 9.08 9.16 36 Baa 10.83 10.18 10.36 9.89 9.65 9.51 9.49 9.47 9.42 9.43 9.45 9.61 37 A-rated, recently offered utility bonds17 10.20 9.79 10.01 9.55 9.25 9.05 9.02 8.96 8.93 9.02 9.04 9.12 MEMO: Dividend-price ratio18 38 Preferred stocks 9.23 9.05 8.96 8.21 8.04 7.88 7.84 7.78 7.77 7.81 7.80 7.89 39 Common stocks 3.64 3.45 3.61 3.20 3.10 3.15 3.14 3.15 3.15 3.24 3.11 3.13 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 seven calendar days ending on Wednesday 13. Unweighted average of rates on all outstanding bonds neither due nor of the 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 obligations based on Thursday figures; Moody's Investors Service. 4. Rate for the Federal Reserve Bank of New York. 15. General obligations only, with twenty years to maturity, issued by twenty 5. Quoted on a discount basis. state and local governmental units of mixed quality. Based on figures for 6. An average of offering rates on commercial paper placed by several leading Thursday. dealers for firms whose bond rating is AA or the equivalent. 16. Daily figures from Moody's Investors Service. Based on yields to maturity 7. An average of offering rates on paper directly placed by finance companies. on selected long-term bonds. 8. Representative closing yields for acceptances of the highest rated money 17. Compilation of the Federal Reserve. This series is an estimate of the yield center banks. on recently-offered, A-rated utility bonds with a thirty-year maturity and five 9. An average of dealer offering rates on nationally traded certificates of years of call protection. Weekly data are based on Friday quotations. deposit. 18. Standard and Poor's corporate series. Preferred stock ratio based on a 10. Bid rates for Eurodollar deposits at 11 a.m. London time. Data are for sample often issues: four public utilities, four industrials, one financial, and one indication purposes only. transportation. Common stock ratios on the 500 stocks in the price index. 11. Auction date for daily data; weekly and monthly averages computed on an NOTE. These data also appear in the Board's H. 15 (519) and G.13 (415) releases. issue-date basis. For address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Financial Markets A25 1.36 STOCK MARKET Selected Statistics 1991 IInnddiiccaattoorr 11998888 11998899 11999900 Feb. Mar. Apr. May June July Aug. Sept. Oct. Prices and trading volume (averages of daily figures) Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 149.96 180.13 183.58 197.75 203.56 207.71 207.07 207.32 208.29 213.33 212.55 213.10 2 Industrial 180.83 228.04 225.89 246.74 255.36 260.16 260.13 261.16 262.48 268.22 266.21 265.68 3 Transportation 134.07 174.90 158.88 166.06 166.26 166.90 170.77 177.05 177.15 178.42 177.99 187.45 4 Utility 72.22 94.33 90.71 92.08 92.29 92.92 90.73 89.01 90.05 92.38 93.72 95.25 5 Finance 127.41 162.01 133.36 141.03 145.41 152.64 151.32 152.30 151.69 157.70 157.69 158.94 6 Standard & Poor's Corporation (1941-43 = 10)1 265.86 323.05 334.83 362.26 372.28 379.68 378.27 378.29 380.23 389.40 387.20 386.88 7 American Stock Exchange (Aug. 31, 1973 = 50? 295.06 356.67 338.58 338.11 353.98 365.02 362.67 366.06 364.33 367.38 369.55 376.82 Volume of trading (thousands of shares) 8 New York Stock Exchange 161,509 165,568 156,777 226,635 196,343 182,510 170,337 162,154 157,871 171,490 163,242 177,502 9 American Stock Exchange 9,955 13,124 n.a.r 16,649 15,326 13,140 10,995 11,477 10,883 12,667 n.a. 13,764 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers 32,740 34,320 28,210 28,860 29,660 30,020 29,980 31,280 30,600 32,240 33,170 33,360 Free credit balances at brokers4 11 Margin accounts 5,660 7,040 8,050 7,190 7,320 6,975 7,200 6,690 6,545 7,040 6,950 6,965 12 Cash accounts 16,595 18,505 19,285 19,435 19,555 17,830 16,650 18,110 16,945 17,040 17,595 17,100 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 on securities other than options are the difference between the market value (100 companies. With this change the index includes 400 industrial stocks (formerly percent) and the maximum loan value of collateral as prescribed by the Board. 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40 Regulation T was adopted effective Oct. 15, 1934; Regulation U, effective May 1, financial. 1936; Regulation G, effective Mar. 11, 1968; and Regulation X, effective Nov. 1, 2. On July 5, 1983, the American Stock Exchange rebased its index, effectively 1971. cutting previous readings in half. On Jan. 1, 1977, the Board of Governors for the first time established in 3. Since July 1983, under the revised Regulation T, margin credit at broker- Regulation T the initial margin required for writing options on securities, setting dealers has included 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 amounts in accounts with no unfulfilled commit- the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC ments to 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 since June 1984. option plus 15 percent of the market value of the stock underlying the option. 6. These requirements, stated in regulations adopted by the Board of Gover- Effective June 8, 1988, margins were set to be the price option plus 20 percent nors pursuant to the Securities Exchange Act of 1934, limit the amount of credit of the market value of the stock underlying the option (or 15 percent in the case that can be used to purchase and carry "margin securities" (as defined in the of stock-index options). regulations) when such credit is collateralized by securities. Margin requirements Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A26 Domestic Nonfinancial Statistics • January 1992 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1990 1991 AAccccoouunntt 11998888 11998899 Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. SAIF-insured institutions 1 Assets 1,350,500 1,249,055 1,109,055 1,084,821 1,065,993 1,054,654 1,041,977 1,027,568 1,020,716 1,001,240 984,979 972,546 2 Mortgages 764,513 733,729 653,508 633,385 624,707 619,720 610,618 608,857 605,915 596,029 586,255 578,259 3 Mortgage-backed securities 214,587 170,532 155,616 155,228 151,422 149,318 147,431 143,968 141,532 139,532 137,078 135,732 4 Contra-assets to mortgage assets' . 37,950 25,457 17,076 16,897 15,211 14,872 14,592 14,338 14,388 14,610 14,187 13,998 5 Commercial loans 33,889 32,150 25,261 24,125 23,669 23,205 22,294 21,903 21,724 20,647 20,301 20,398 6 Consumer loans 61,922 58,685 50,177 48,753 48,129 47,729 47,653 46,702 45,827 45,178 44,349 43,248 7 Contra-assets to nonmortgage loans . 3,056 3,592 1,692 1,939 1,700 1,876 1,827 1,742 1,739 1,745 1,674 1,535 8 Cash and investment securities 186,986 166,053 145,998 146,644 140,502 138,884 138,976 132,884 134,029 130,453 130,268 132,016 9 Other3 129,610 116,955 97,262 95,522 94,474 92,546 91,424 89,334 87,766 85,756 82,589 78,426 10 Liabilities and net worth . 1,350,500 1,249,055 1,109,055 1,084,821 1,065,993 1,054,654 1,041,977 1,027,568 1,020,716 1,001,240 984,979 972,546 11 Savings capital 971,700 945,656 846,822 835,4% 823,515 816,477 816,991 806,269 801,681 792,936 775,448 763,767 12 Borrowed money 299,400 252,230 203,855 197,353 188,900 183,660 169,412 164,274 159,636 151,474 146,902 142,908 13 FHLBB 134,168 124,577 100,493 100,391 95,819 94,658 90,555 86,779 82,312 78,966 76,104 74,424 14 Other 165,232 127,653 103,362 96,962 93,081 89,002 78,857 77,495 77,324 72,508 70,798 68,484 15 Other 24,216 27,556 26,152 21,332 22,178 23,355 20,350 21,730 23,647 20,468 21,639 22,645 16 Net worth n.a. 23,612 32,225 30,640 31,400 31,162 35,223 35,295 35,751 36,728 40,989 43,226 1. Contra-assets are credit-balance accounts that must be subtracted from the 3. Includes holding of stock in Federal Home Loan Bank and finance leases corresponding gross asset categories to yield net asset levels. Contra-assets to plus interest. mortgage loans, contracts, and pass-through securities include loans in process, NOTE. Components do not sum to totals because of rounding. Data for credit unearned discounts and deferred loan fees, valuation allowances for mortgages unions and life insurance companies have been deleted from this table. They will "held for sale," and specific reserves and other valuation allowances. be shown in a separate table which will appear quarterly, starting in the December 2. Contra-assets are credit-balance accounts that must be subtracted from the issue. corresponding gross asset categories to yield net asset levels. Contra-assets to SOURCE. Savings Association Insurance Fund (SAIF)-insured institutions: nonmortgage loans include loans in process, unearned discounts and deferred loan Estimates by the Office of Thrift Supervision (OTS) for all institutions insured by fees, and specific reserves and valuation allowances. the SAIF and based on the OTS thrift institution Financial Report. 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS1 Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll FFFiiissscccaaalll TTTyyypppeee ooofff aaaccccccooouuunnnttt ooorrr ooopppeeerrraaatttiiiooonnn yyyeeeaaarrr yyyeeeaaarrr yyyeeeaaarrr 1991 111999888999 111999999000 111999999111 May June July Aug. Sept. Oct. U.S. budget2 1 Receipts, total 990,701 1,031,308 1,054,260 63,560 103,389 78,593 76,426 109,345 78,068 2 On-budget 727,035 749,652 760,377r 41,958 76,322 56,327 54,651 83,130" 57,216 3 Off-budget 263,666 281,656 293,883r 21,602 27,067 22,266 21,775 26,215r 20,852 4 Outlays, total 1,144,020 1,251,766 1,322,989 116,906 105,849 119,384 120,071 116,174 114,045 5 On-budget 933,107 1,026,711 l,081,303r 95,903 90,901 99,532 %,255 91,516r 94,062 6 Off-budget 210,911 225,065 241,685r 21,003 14,948 19,852 22,824 24,658r 19,983 7 Surplus or deficit (-), total -153,319 -220,469 -268,729 -53,346 -2,460 -40,791 -43,645 -6,829 -35,976 8 On-budget -206,072 -277,059 -320,926 -53,945 -14,579 -43,205 -42,5% -8,386 36,846 9 Off-budget 52,753 56,590 52,198 599 12,119 2,414 -1,049 1,557 869 Source of financing (total) 10 Borrowing from the public 141,806 220,101 276,802 41,742 10,715 34,434 32,574 27,970 40,657 11 Operating cash (decrease, or increase (-)) ... 3,425 818 -1,329 20,362 -15,730 6,728 18,504 -23,133 11,235 12 Other 8,088 -451 -6,744 -8,758 7,475 -371 -8,425 1,992 6,554 MEMO 13 Treasury operating balance (level, end of period) 40,973 40,155 41,484 27,853 43,538 36,855 18,351 41,484 52,719 14 Federal Reserve Banks 13,452 7,638 7,928 6,619 11,822 5,831 6,745 7,928 18,111 15 Tax and loan accounts 27,521 32,517 33,556 21,234 31,761 31,024 11,606 33,556 34,608 1. Components may not sum to totals because of rounding. in the International Monetary Fund (IMF); loans to the IMF; other cash and 2. In accordance with the Balanced Budget and Emergency Deficit Control Act monetary assets; accrued interest payable to the public; allocations of SDRs; of 1985, all former off-budget entries are now presented on-budget. Federal deposit funds; miscellaneous liability (including checks outstanding) and asset Financing Bank (FFB) activities are now shown as separate accounts under the accounts; seigniorage; increment on gold; net gain or loss for U.S. currency agencies that use the FFB to finance their programs. The act also moved two valuation adjustment; net gain or loss for IMF loan-valuation adjustment; and social security trust funds (federal old-age survivors insurance and federal profit on sale of gold. disability insurance trust fund) off-budget. The Postal Service is included as an SOURCES. Monthly Treasury Statement of Receipts and Outlays of the U.S. off-budget item in the Monthly Treasury Statement beginning in 1990. Government (MTS) and the Budget of the U.S. Government. 3. Includes special drawing rights (SDRs); reserve position on the U.S. quota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Federal Finance All 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1 Millions of dollars Calendar year Fiscal Fiscal Source or type year year 1989 1990 1991 H2 HI H2 Aug. Sept. Oct. RECEIPTS 1 All sources 1,031,308 1,054,260 470,276 548,861 503,123 540,504 76,426 109,345 78,068 2 Individual income taxes, net 466,884 467,827 218,706 243,087 230,745 232,389 34,560 47,979 39,332 4 3 P W re it s h i h d e e l n d t ial Election Campaign Fund . 388,38 3 4 2 404,15 3 2 2 193,29 3 6 190,21 3 9 0 207,469 3 193,44 3 0 1 32,993 1 30,758 0 37,291 0 5 Nonwithheld 151,285 142,693 33,303 117,675 31,728 109,405 3,098 19,145 3,725 6 Refunds 72,817 79,050 7,898 64,838 8,455 70,487 1,532 1,924 1,684 Corporation income taxes 7 Gross receipts 110,017 113,599 52,269 58,830 54,044 58,903 2,893 19,514 3,613 8 Refunds 16,510 15,513 6,842 8,326 7,603 7,904 934 2,442 9 Social insurance taxes and contributions, net 380,047 396,011 162,574 210,476 178,468 214,303 31,504 34,042 28,435 10 Employment taxes and contributions 353,891 370,526 152,407 195,269 167,224 199,727 27,664 33,439 27,022 11 Self- c e o m n p tr l i o b y u m tio en n t s taxes and 21,795 25,457 1,947 19,017 2,638 22,150 187 3,119 0 12 Unemployment insurance 21,635 20,922 7,909 12,929 8,9% 12,296 3,417 234 971 13 Other net receipts4 4,522 4,563 2,260 2,278 2,249 2,279 422 370 443 14 Excise taxes 35,345 42,430 16,799 18,153 17,535 20,703 4,626 4,038 3,640 15 Customs deposits 16,707 15,921 8,667 8,096 8,568 7,488 1,484 1,322 1,607 16 Estate and gift taxes 11,500 11,138 4,451 6,442 5,333 5,631 853 939 923 17 Miscellaneous receipts5 27,316 22,847 13,651 12,106 16,032 8,991 2,093 2,446 2,962 OUTLAYS 18 All types 1,251,776 1,322,989 587,394 640,867 647,218 631,737 120,071 116,174 114,045 19 National defense 299,331 272,514 149,613 152,733 149,497 122,089 27,968 21,929 23,792 2 2 2 2 2 2 3 4 1 0 A N E G In n g a e t e n e t r u i r r e c g n r r u a y a a l l l t t i u r o s e r c n e s i a o e l u n a c rc f e f e , a s i s r p a s n a d ce , e n a v n i d r o t n ec m h e n n o t l ogy . 1 1 1 1 2 3 7 1 4 , , , , , 3 7 0 9 4 7 6 6 5 4 2 2 7 8 4 1 1 1 1 1 8 4 5 6 , , , , , 7 8 7 9 1 0 6 5 4 6 8 4 0 6 7 9 4 5 7 1 , , , , , 1 1 9 0 4 3 8 7 9 4 2 3 1 1 9 6 6 7 7 1 , , , , , 3 9 7 4 2 4 7 7 5 1 3 4 0 0 6 8 9 6 8 , , , , 9 9 8 0 9 4 3 7 8 7 3 3 8 1 9 8 7 7 7 , , , , 3 6 4 5 8 2 8 9 9 1 4 4 2 6 6 1 1 , , 4 4 8 3 1 4 7 3 6 2 0 0 5 7 9 r 1 1 1 -5 , , , 5 3 2 0 7 9 2 6 2 3 7 7 5 6 3 1 1 1 , , , , 1 6 8 5 6 7 1 4 6 4 9 5 2 2 0 25 Commerce and housing credit 67,160 75,639 22,295 38,672 37,491 17,992 5,805 20,097 29 26 Transportation 29,485 31,531 14,982 13,754 16,218 14,748 3,105 2,764 2,891 27 Community and regional development .. 7,432 4,879 3,987 3,939 3,552 614 616 802 28 Education, training, employment, and social services 38,497 41,479 18,663 19,537 18,988 21,234 3,550 3,983 29 Health 57,716 71,183 25,339 29,488 31,424 35,608 6,401 7,031 7,194 30 Social security and medicare 346,383 373,495 162,322 175,997 176,353 190,247 32,505 30,884 32,659 31 Income security 147,314 171,618 67,950 78,475 75,948 88,778 15,367 12,189 13,695 32 Veterans benefits and services 29,112 31,344 14,864 15,217 15,479 14,326 3,666 1,322 3,086 33 Administration of justice 10,004 12,295 4,909 4,868 5,265 6,187 1,153 966 1,129 34 General government 10,724 11,358 4,760 4,916 6,976 5,212 1,032 1,181 2,056 35 Net interest6 , 184,221 195,012 87,927 91,155 94,650 98,556 17,605 15,838 16,847 36 Undistributed offsetting receipts -36,615 -39,356 -18,935 -17,688 -19,829 -18,702 -2,942 -5,369 -2,956 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
A28 Domestic Financial Statistics • January 1992 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION1 Billions of dollars, end of month 1989 1990 1991 IItteemm Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 1 Federal debt outstanding 2,881.1 2,975.5 3,081.9 3,175.5 3,266.1 3,397.3 3,491.7 3,562.9 3,598.9 2 Public debt securities 2,857.4 2,953.0 3,052.0 3,143.8 3,233.3 3,364.8 3,465.2 3,538.0 3,665.3 3 Held by public 2,180.7 2,245.2 2,329.3 2,368.8 2,437.6 2,536.6 2,598.4 2,642.9 n.a. 4 Held by agencies 676.7 707.8 722.7 775.0 795.8 828.3 866.8 895.1 n.a. 5 Agency securities 23.7 22.5 29.9 31.7 32.8 32.5 26.5 25.0 n.a. 6 Held by public 23.5 22.4 29.8 31.6 32.6 32.4 26.4 24.8 n.a. 7 Held by agencies .1 .1 .2 .2 .2 .1 .1 .1 n.a. 8 Debt subject to statutory limit 2,829.8 2,921.7 2,988.9 3,077.0 3,161.2 3,281.7 3,377.1 3,450.3 3,569.3 9 Public debt securities 2,829.5 2,921.4 2,988.6 3,076.6 3,160.9 3,281.3 3,376.7 3,449.8 3,569.0 10 Other debt2 .3 .3 .3 .4 .4 .4 .4 .4 .3 11 MEMO: Statutory debt limit 2,870.0 3,122.7 3,122.7 3,122.7 3,195.0 4,145.0 4,145.0 4,145.0 4,145.0 1. Components may not sum to totals because of rounding. of Columbia stadium bonds. 2. Consists of guaranteed debt of Treasury and other federal agencies, specified SOURCES. Treasury Bulletin and Monthly Statement of the Public Debt of the participation certificates, notes to international lending organizations, and District United States. 1.41 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership1 Billions of dollars, end of period 1990 1991 Type and holder 11998877 11998888 11998899 11999900 Q4 Q1 Q2 Q3 1 Total gross public debt 2,431.7 2,684.4 2,953.0 3,364.8 3,364.8 3,465.2 3,538.0 3,665.3 By type 2 Interest-bearing 2,428.9 2,663.1 2,931.8 3,362.0 3,362.0 3,441.4 3,516.1 3,662.8 3 Marketable 1,724.7 1,821.3 1,945.4 2,195.8 2,195.8 2,227.9 2,268.1 2,390.7 4 Bills 389.5 414.0 430.6 527.4 527.4 533.3 521.5 564.6 5 Notes 1,037.9 1,083.6 1,151.5 1,265.2 1,265.2 1,280.4 1,320.3 1,387.7 6 Bonds 282.5 308.9 348.2 388.2 388.2 399.3 411.2 423.4 7 Nonmarketable 704.2 841.8 986.4 1,166.2 1,166.2 1,213.5 1,248.0 1,272.1 8 State and local government series 139.3 151.5 163.3 160.8 160.8 159.4 161.0 158.1 9 Foreign issues 4.0 6.6 6.8 43.5 43.5 42.8 42.1 41.6 10 Government 4.0 6.6 6.8 43.5 43.5 42.8 42.1 41.6 11 Public .0 .0 .0 .0 .0 .0 .0 .0 12 Savings bonds and notes 99.2 107.6 115.7 124.1 124.1 127.7 131.3 133.5 13 Government account series4 461.3 575.6 695.6 813.8 813.8 853.1 883.2 908.4 14 Non-interest-bearing 2.8 21.3 21.2 2.8 2.8 23.8 21.9 2.5 By holder 5 15 U.S. Treasury and other federal agencies and trust funds. 477.6 589.2 707.8 828.3 828.3 866.8 895.1 n.a. 16 Federal Reserve Banks 222.6 238.4 228.4 259.8 259.8 247.3 255.1 n.a. 17 Private investors 1,731.4 1,858.5 2,015.8 2,288.3 2,288.3 2,360.6 2,397.9 n.a. 18 Commercial banks 201.5 193.8 174.8 188.2 188.2 194.8 200.0 n.a. 19 Money market funds 14.6 11.8 14.9 45.4 45.4 65.7 55.5 n.a. 20 Insurance companies 104.9 107.3 130.1 149.7 149.7 149.2 152.0 n.a. 21 Other companies 84.6 87.1 93.4 108.9 108.9 114.9 130.8 n.a. 22 State and local treasuries 284.6 313.6 338.7 329.6 329.6 329.3 329.0 n.a. Individuals 23 Savings bonds 101.1 109.6 117.7 126.2 126.2 129.7 133.2 n.a. 24 Other securities 71.3 79.2 98.7 107.6 107.6 108.6 110.3 n.a. 25 Foreign and international 299.7 362.2 392.9 425.1 425.1 430.3 441.6 n.a. 26 Other miscellaneous investors 569.1 593.4 654.6 807.6 807.6 838.1 845.5 n.a. 1. Components may not sum to totals because of rounding. funds are actual holdings; data for other groups are Treasury estimates. 2. Includes (not shown separately) securities issued to the Rural Electrification 6. Consists of investments of foreign balances and international accounts in the Administration, depository bonds, retirement plan bonds, and individual retire- United States. ment bonds. 7. Includes savings and loan associations, nonprofit institutions, credit unions, 3. Nonmarketable series denominated in dollars, and series denominated in mutual savings banks, corporate pension trust funds, dealers and brokers, certain foreign currency held by foreigners. U.S. Treasury deposit accounts, and federally-sponsored agencies. 4. Held almost entirely by U.S. Treasury and other federal agencies and trust SOURCES. Data by type of security, U.S. Treasury Department, Monthly funds. Statement of the Public Debt of the United States; data by holder, the Treasury 5. Data for Federal Reserve Banks and U.S. government agencies and trust Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Federal Finance All 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Millions of dollars, daily averages, par value 1991 1991, week ending IItteemm Julyr Aug. Sept. Sept. 4 Sept. 11 Sept. 18 Sept. 25 Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30 IMMEDIATE TRANSACTIONS2 By type of security U.S. Treasury securities 1 Bills 28,106 33,421 31,075 27,688 29,140 33,539 29,961 34,310 35,891 32,143 32,270 41,013 Coupon securities, by maturity 2 Less than 3.5 years 32,966 43,814 36,102 30,286 31,389 36,785 40,838 3388,,880022 36,533 3311,,111177 3388,,551177 4433,,992255 3 3.5 to 7.5 years 23,659 32,184 28,216 24,886 24,543 28,847 29,473 33,414 37,857 32,910 34,330 37,930 4 7.5 to 15 years 9,016 17,292r 13,490 9,916 11,609 15,614 14,213 14,265 15,842 13,898 16,091 18,244 5 15 years or more 10,883 17,076r 13,580 12,408 11,590 14,868 14,457 14,071 15,902 16,287 14,888 15,822 Federal agency securities Debt, maturing in 6 Less than 3.5 years 4,658 4,380 4,381 5,358 3,577 4,286 4,521 4,995 3,794 44,,553399 44,,225566 55,,008877 7 3.5 to 7.5 years 421 666 674 310 873 669 573 759 534 431 609 563 8 7.5 years or more 623 649* 601 286 628 708 575 634 490 780 888 686 Mortgage-backed securities 9 Pass-throughs 9,264 10,345 12,321 10,549 14,464 11,627 12,056 11,532 11,775 11,836 12,067 1122,,554433 10 All others 1,647 2,022 2,314 1,064 1,564 2,638 2,965 2,772 2,149 3,091 2,539 2,831 By type of counterparty Primary dealers and brokers 11 U.S. Treasury securities 64,003 88,207r 74,769 61,99c 65,268 79,323 80,918 81,282 87,282 77,700 8866,,337722 9999,,880077 Federal agency securities 12 Debt 1,471 1,424 1,457 1,272 1,329 1,372 1,610 1,677 1,281 1,695 1,432 1,957 13 Mortgage-backed 4,940 5,506r 6,736 6,003 8,121 5,887 6,715 6,368 6,678 7,127 5,988 7,867 Customers 14 U.S. Treasury securities 40,628 55,580 47,696 43,194r 43,003 50,330 48,024 53,580 54,743 48,655 49,724 5577,,112288 Federal agency securities 15 Debt 4,230 4,272 4,200 4,682 3,749 4,291 4,059 4,711 3,538 4,055 4,321 4,378 16 Mortgage-backed 5,971 6,862 7,899 5,609 7,906 8,378 8,306 7,936 7,245 7,800 8,618 7,507 FUTURE AND FORWARD TRANSACTIONS4 By type of deliverable security U.S. Treasury securities 17 Bills 3,499 5,004 3,616 2,794 3,606 4,980 3,079 2,803 2,879 22,,557722 33,,115533 33,,881100 Coupon securities, by maturity 18 Less than 3.5 years 950 1,426 9% 1,161 1,057 954 998877 868 881100 11,,667733 11,,447788 11,,333322 19 3.5 to 7.5 years 506 529 541 282 391 696 562 673 708 1,023 785 758 20 7.5 to 15 years 567 1,145 881 1,055 798 944 945 690 815 925 1,054 1,041 21 15 years or more 6,224 9,267 8,235 6,647 7,507 8,797 9,261 7,862 8,049 9,901 10,090 9,757 Federal agency securities Debt, maturing in 22 Less than 3.5 years 91 41r 45 7 NAr 95 9 45 27 5 116644 118811 23 3.5 to 7.5 years 49 51 51 11 13 7 52 210 34 26 14 10 24 7.5 years or more 21 12 33 4 73 24 23 17 7 10 12 74 Mortgage-backed 25 Pass-throughs and others3 280 378 0 434 536 589 227 0 0 00 00 00 OPTION TRANSACTIONS5 By type of underlying security U.S. Treasury, coupon securities, by maturity 26 Less than 3.5 years 4,478 4,977 1,725 5,503 1,244 1,472 1,162 11,,337711 11,,225522 881111 991155 888866 27 3.5 to 7.5 years 195 162r 340 147 226 315 157 1,008 220 205 475 346 28 7.5 to 15 years 264 487 337 290 374 437 236 310 553 403 325 263 29 15 years or more 2,006 2,792 2,551 2,175 1,591 2,588 3,674 2,471 1,602 2,396 2,027 2,334 Federal agency, mortgagebacked securities 30 Pass-throughs 280 378 0 434 536 589 227 0 0 0 0 0 1. Transactions are market purchases and sales of securities as reported to the 4. Futures transactions are standardized agreements arranged on an exchange. Federal Reserve Bank of New York by the U.S. government securities dealers on Forward transactions are agreements made in the over-the-counter market that its published list of primary dealers. Averages for transactions are based on the specify delayed delivery. All futures transactions are included regardless of time number of trading days in the period. Immediate, forward, and future transactions to delivery. Forward contracts for U.S. Treasury securities and federal agency are reported at principal value, which does not include accrued interest; option debt securities are included when the time to delivery is more than five days. transactions are reported at the face value of the underlying securities. Forward contracts for mortgage-backed securities are included when the time to Dealers report cumulative transactions for each week ending Wednesday. delivery is more than thirty days. 2. Transactions for immediate delivery include purchases or sales of securities 5. Options transactions are purchases or sales of put-and-call options, whether (other than mortgage-backed agency securities) for which delivery is scheduled in arranged on an organized exchange or in the over-the-counter market, and include five business days or less and "when-issued" securities that settle on the issue options on futures contracts on U.S. Treasury and federal agency securities. date of offering. Transactions for immediate delivery of mortgage-backed securities NOTE. In tables 1.42 and 1.43, the term "n.a." refers to data that are not include purchases and sales for which delivery is scheduled in thirty days or less. published because of insufficient activity. Stripped securities are reported at market value by maturity of coupon or corpus. Data formerly shown under option transactions for U.S. Treasury securities, 3. Includes such securities as collateralized mortgage obligations (CMOs), real bills; Federal agency securities, debt; and mortgage-backed securities, other than estate mortgage investment conduits (REMICs), interest only securities (IOs), pass-throughs are no longer available because of insufficient activity. and principal only securities (POs). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A30 Domestic NonfinancialS tatistics • January 1992 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 1991 1991, week ending item July Aug. Sept. Aug. 28 Sept. 4 Sept. 11 Sept. 18 Sept. 25 Oct. 2 Oct. 9 Oct. 16 Oct. 23 Positions2 NET IMMEDIATE TRANSACTIONS3 By type of security U.S. Treasury securities 1 Bills 17,206 15,391 15,937r 9,270 12,006 13,365 15,381 21,374 15,848 13,836 13,013 18,827 Coupon securities, by maturity 2 Less than 3.5 years -3,067 1,488 4,092r 2,279 3,272 804 2,079 7,184 7,838 6,483 4,967 9,058 3 3.5 to 7.5 years 7,090 2,988 589" 4,249 2,675 2,027 117 1,308 -3,439 -1,950 -1,803 -5,109 4 7.5 to 15 years -4,726 -4,055 -4,912 -5,552 -5,418 -5,015 -4,975 -5,304 -3,726 -3,484 -2,856 -4,268 5 15 years or more -17,183 -13,686 -12,134 -12,480 -14,067 -13,284 -12,165 -11,624 -9,650 -7,331 -7,732 -8,447 Federal agency securities Debt, maturing in 6 Less than 3.5 years 5,842r 5,726 4,762 6,020 4,503 4,834 5,227 5,194 3,615 3,743 4,665 5,061 7 3.5 to 7.5 years l,864r 1,853 1,883 1,877 1,861 1,904 2,017 1,817 1,774 1,908 1,943 1,853 8 7.5 years or more 4,728r 5,036 5,082 4,889 5,132 5,144 4,943 5,078 5,155 5,158 5,106 4,827 Mortgage-backed securities 9 Pass-throughs 27,167r 31,145r 29,377r 29,728r 26,306 32,916 37,054 28,865 16,851 24,405 28,460 28,443 10 All others 11,864r 11,274 12,611r 10,397 11,531 11,281 12,312 13,572 14,413 13,349 15,825 14,107 Other money market instruments 11 Certificates of deposit 3,686 3,115 3,020 2,622 2,688 2,521 3,501 3,014 3,320 2,825 3,485 3,346 12 Commercial paper 5,546 6,300 5,912 5,926 6,433 4,959 6,875 5,572 5,955 5,462 7,108 6,080 13 Bankers acceptances 1,228 1,319 1,575 1,244 1,626 1,519 1,858 1,489 1,339 1,488 1,696 1,140 FUTURE AND FORWARD TRANSACTIONS5 By type of deliverable security U.S. Treasury securities 14 Bills -12,116 -12,840 -7,828 -10,626 -8,695 -9,105 -6,810 -8,445 -5,909 -7,549 -9,161 -8,621 Coupon securities, by maturity 15 Less than 3.5 years 1,329 984 1,615 986 752 1,721 1,892 1,602 1,790 1,291 1,071 967 16 3.5 to 7.5 years 1,511 -1,113 -868 -1,101 -1,001 -499 -727 -1,241 -952 -766 -1,924 -2,019 17 7.5 to 15 years -622 -2,316 -1,892 -2,373 -2,137 -1,907 -1,990 -1,502 -2,081 -1,430 -856 -437 18 15 years or more -2,811 -5,214 -5,582 -6,239 -5,695 -6,314 -5,146 -5,442 -5,275 -4,689 -4,103 -2,344 Federal agency securities Debt, maturing in 19 Less than 3.5 years 15 -41 -41 -63 -33 -26 -116 -55 54 -64 21 101 20 3.5 to 7.5 years -9 68 -lr 19 -15 21 38 -58 5 -102 -121 -52 21 7.5 years or more -15 29 -26 11 10 1 -20 -92 -11 -56 -2 -37 Mortgage-backed securities 22 Pass-throughs -14,870 -18,722 - 18,899r -17,268 -12,347 -21,685 -27,597 -18,369 -8,804 -13,466 -20,329 -17,278 23 All others 17 1,934 1,994 3,119 1,813 1,052 2,668 2,582 1,693 491 12 2,707 24 Certificates of deposit -42,864 -102,587r -128,658r -107,141 -113,238 -115,197 -125,149 -140,293 -148,460 -158,034 -151,897 -151,431 Financing6 Reverse repurchase agreements 25 Overnight and continuing 180,538 194,528 189,584 183,342 198,872 197,243 196,683 172,721 185,101 183,560 190,921 173,955 26 Term 226,196r 244,421 247,564 253,841 232,928 254,206 251,979 255,320 232,936 252,760 245,959 257,128 Repurchase agreements 27 Overnight and continuing 285,305 306,936 296,224 305,444 301,070 295,256 309,757 284,569 291,072 286,352 294,489 283,271 28 Term 201,256 224,357 227,932r 238,909 210,442 231,894 232,536 244,141 207,237 232,550 228,455 243,006 Securities borrowed 29 Overnight and continuing 64,442 62,248 61,963 63,351 62,012 62,052 65,148 61,686 57,729 58,548 57,695 59,490 30 Term 23,187 22,568 22,150 22,586 21,868 21,523 20,764 24,294 22,191 25,008 24,023 21,843 Securities loaned 31 Overnight and continuing 7,197r 7,995 8,725 8,638 7,909 7,809 8,631 10,264 8,640 8,346 10,135 9,620 32 Term 937 791 1,416 1,339 618 696 547 3,900 804 816 817 865 Collateralized loans 33 Overnight and continuing 6,770 7,091 0 6,214 7,441 0 0 0 0 0 0 0 MEMO: Matched book7 Reverse repurchases 34 Overnight and continuing 118,323r 129,272 127,648 124,970 130,728 131,439 135,264 117,395 123,571 125,865 130,327 117,562 35 Term 186,775r 198,749 197,099 208,056 192,571 193,614 200,523 205,340 189,269 205,723 199,229 209,371 Repurchases 36 Overnight and continuing 158,617 159,234 149,490 155,035 157,851 151,105 158,307 135,033 148,434 145,581 144,501 135,493 37 Term 150,534 166,164 169,284 174,858 155,125 172,333 172,507 178,568 158,834 180,559 175,047 186,484 1. Data for positions and financing are obtained from reports submitted to the delivery. Forward contracts for U.S. Treasury securities and for federal agency Federal Reserve Bank of New York by the U.S. government securities dealers on debt securities are included when the time to delivery is more than five business its published list of primary dealers. Weekly figures are close-of-business Wednes- days. Forward contracts for mortgage-backed securities are included when the day data; monthly figures are averages of weekly data. Data for positions and time to delivery is more than thirty days. financing are averages of close-of-business Wednesday data. 6. Overnight financing refers to agreements made on one business day that 2. Securities positions are reported at market value. mature on the next business day; continuing contracts are agreements that remain 3. Net immediate positions include securities purchased or sold (other than in effect for more than one business day but have no specific maturity and can be mortgage-backed agency securities) that have been delivered or are scheduled to terminated without advance notice by either party; term agreements have a fixed be delivered in five business days or less and "when-issued" securities settle on maturity of more than one business day. the issue date of offering. Net immediate positions of mortgage-backed securities 7. Matched-book data reflect financial intermediation activity in which the include securities purchased or sold that have been delivered or are scheduled to borrowing and lending transactions are matched. Matched-book data are included be delivered in thirty days or less. in the financing breakdowns given above. The reverse repurchase and repurchase 4. Includes securities such as collateralized mortgage obligations (CMOs), real numbers are not always equal because of the "matching" of securities of different estate mortgage investment conduits (REMICs), interest only (IOs), and principal values or types of collateralization. only (POs). NOTE. Data for future and forward commercial paper and bankers' acceptances 5. Futures positions are standardized contracts arranged on an exchange. and term financing of collateralized loans are no longer available because of Forward positions reflect agreements made in the over-the-counter market that insufficient activity. specify delayed delivery. All futures positions are included regardless of time to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Federal Finance All 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1991 AAggeennccyy 11998877 11998888 11998899 11999900 Apr. May June July Aug. 1 Federal and federally sponsored agencies 341,386 381,498 411,805 434,668 432,348 432,306 429,179 432,587 436,909 2 Federal agencies 37,981 35,668 35,664 42,159 41,107 41,031 40,591 40,380 39,940 3 Defense Department1 13 8 7 7 7 7 7 7 7 4 Export-Import Bank2,3 11,978 11,033 10,985 11,376 11,186 11,186 11,244 11,244 11,244 5 Federal Housing Administration 183 150 328 393 365 407 428 300 315 6 Government National Mortgage Association participation certificates 1,615 0 0 0 0 0 0 0 00 7 Postal Service 6,103 6,142 6,445 6,948 6,948 6,651 6,651 6,621 6,621 8 Tennessee Valley Authority 18,089 18,335 17,899 23,435 22,601 22,780 22,261 22,208 21,753 9 United States Railway Association6 0 0 0 0 0 0 0 0 0 10 Federally sponsored agencies7 303,405 345,830 375,407 392,509 391,241 391,275 388,588 392,207 396,969 11 Federal Home Loan Banks 115,727 135,836 136,108 117,895 110,691 108,981 105,775 106,397 107,469 12 Federal Home Loan Mortgage Corporation 17,645 22,797 26,148 30,941 29,768 29,016 28,836 29,559 31,650 13 Federal National Mortgage Association 97,057 105,459 116,064 123,403 124,189 126,806 126,606 128,764 128,589 14 Farm Credit Banks8 55,275 53,127 54,864 53,590 52,049 51,485 51,712 51,318 52,056 15 Student Loan Marketing Association 16,503 22,073 28,705 34,194 35,117 35,560 36,232 36,742 37,778 16 Financing Corporation10 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 Corporation 0 0 4,522 23,055 29,996 29,996 29,996 29,996 29,996 MEMO 19 Federal Financing Bank debt13 152,417 142,850 134,873 179,083 182,708 182,582 185,129 186,752 188,920 Lending to federal and federally sponsored agencies 70 Export-Import Bank3 11,972 11,027 10,979 11,370 1111,,118800 1111,,118800 1111,,223388 1111,,223388 1111,,223388 71 Postal Service6 5,853 5,892 6,195 6,698 6,698 6,401 6,401 6,401 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 23 Tennessee Valley Authority 16,709 16,955 16,519 14,055 13,221 13,400 12,881 12,828 12,373 24 United States Railway Association6 0 0 0 0 0 0 0 0 0 Other Lending1* 7.5 Farmers Home Administration 59,674 58,496 53,311 52,324 52,669 52,669 52,254 5511,,333344 5511,,333344 26 Rural Electrification Administration 21,191 19,246 19,265 18,890 18,850 18,878 18,894 18,832 18,846 27 32,078 26,324 23,724 70,896 75,240 75,204 78,611 81,269 83,878 1. Consists of mortgages assumed by the Defense Department between 1957 shown on line 22. and 1963 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 1969 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
A32 Domestic NonfinancialS tatistics • January 1992 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1991 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11998888 11998899 11999900 Mar. Apr. May June July Aug. Sept/ Oct. 1 All issues, new and refunding1 114,522 113,646 120,339 10,864 10,916 14,753 13,804 11,629 15,744 13,240 11,357 By type of issue 2 General obligation 30,312 35,774 39,610 4,219 3,771 4,946 4,442 3,900 5,919 5,253 3,088 3 Revenue 84,210 77,873 81,295 6,645 7,145 9,807 9,362 7,729 9,825 7,987 8,269 By Type of issuer 4 State 8,830 11,819 15,149 1,195 1,199 1,890 1,529 650 2,328 n.a. 1,345 5 Special district or statutory authority2 74,409 71,022 72,661 6,599 6,604 9,549 5,057 7,320 8,890 n.a. n.a. 6 Municipality, county, or township 31,193 30,805 32,510 3,070 3,113 3,314 7,218 3,659 4,526 n.a. n.a. 7 Issues for new capital, total 79,665 84,062 103,235 9,675 10,156 13,924 13,347 11,414 15,177 12,664 11,104 By use of proceeds 8 Education 15,021 15,133 17,042 2,583 2,001 2,462 2,684 2,214 1,826 1,244 1,524 9 Transportation 6,825 6,870 11,650 421 1,305 1,642 1,829 621 1,498 1,249 1,476 10 Utilities and conservation 8,4% 11,427 11,739 1,886 2,171 1,815 2,830 2,077 1,977 2,343 2,151 11 Social welfare 19,027 16,703 23,099 2,140 921 3,373 2,455 2,287 5,291 2,862 1,386 12 Industrial aid 5,624 5,036 6,117 554 319 743 1,040 425 565 1,262 553 13 Other purposes 24,672 28,894 34,607 2,091 3,439 3,889 2,509 3,790 4,019 3,704 4,014 1. Par amounts of long-term issues based on date of sale. SOURCES. Investment Dealer's Digest beginning April 1990. Securities Data/ 2. Since 1986, has included school districts. Bond Buyer Municipal Data Base beginning 1986. Public Securities Association for earlier data. 1.46 NEW SECURITY ISSUES U.S. Corporations Millions of dollars 1991 TTyyppee ooff oo ii rr ss ss iiss uu ss ee uu ,, ee oo rr ffffeerriinngg,, 11998888 11998899 11999900 Feb. Mar. Apr. May June July Aug. Sept. 1 All issues1 410,898 379,535 339,551 30,981r 36,386r 33,933 37,459" 31,683r 22,956" 35,991" 32,068 2 Bonds2 353,097 321,664 299,313 29,179r 32,437r 28,620 30,041r 26,065" 20,274" 29,261" 26,647 By type of offering 3 Public, domestic 202,215 181,393 189,271 26,010" 29,934 24,763 27,210" 23,644" 18,718" 27,391" 23,750 4 Private placement, domestic3 127,704 117,420 86,988 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5 Sold abroad 23,178 22,851 23,054 3,169 2,503r 3,857 2,830 2,421 1,555 1,870" 2,897 By industry group 6 Manufacturing 70,306 76,656 53,110 8,124r 7,240 7,613 6,609" 4,238" 3,827" 8,240" 6,873 7 Commercial and miscellaneous 62,794 49,744 40,019 2,021r 1,739 2,936 1,190 1,743 1,400 1,368" 992 8 Transportation 10,275 10,032 12,706 563 992 502 665 567 697" 959 231 9 Public utility 20,834 18,688 17,521 1,399 506 2,115 2,682 1,706 1,420" 1,947" 11,,337700 10 Communication 5,593 8,461 6,664 669 988 845 337 1,838 715" 668" 440088 11 Real estate and financial 183,294 158,083 169,287 16,404 20,972r 14,610 18,558 15,973" 12,215" 16,079" 16,773 12 Stocks2 57,802 57,870 40,241 1,802 3,949 5,313 7,418 5,618 2,682 6,730 5,421 By type of offering 13 Public preferred 6,544 6,194 3,998 150 1,233 543 1,392 1,731 203 1,952 666 14 Common 35,911 26,030 19,443 1,652 2,716 4,771 6,027 3,887 2,479 4,778 4,755 15 Private placement3 15,346 25,647 16,800 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. By industry group 16 Manufacturing 7,608 9,308 5,530 183 564 1,796 2,291 1,909 685 3,167 1,842 17 Commercial and miscellaneous 8,449 7,446 10,079 546 1,096 1,521 1,563 851 1,427 2,050 858 18 Transportation 1,535 1,929 426 0 249 416 277 0 18 56 0 19 Public utility 1,898 3,090 3,809 335 354 71 573 471 143 150 55 20 Communication 515 1,904 416 0 0 0 0 295 46 8 0 21 Real estate and financial 37,798 34,028 19,869 737 1,686 1,510 2,714 2,091 350 1,298 2,666 1. Figures represent gross proceeds of issues maturing in more than one year; 2. Monthly data cover only public offerings. they are the principal amount or number of units calculated by multiplying by the 3. Monthly data are not available. offering price. Figures exclude secondary offerings, employee stock plans, SOURCES. IDD Information Services, Inc., the Board of Governors of the investment companies other than closed-end, intracorporate transactions, equi- Federal Reserve System, and, before 1989, the U.S. Securities and Exchange ties sold abroad, and Yankee bonds. Stock data include ownership securities Commission. issued by limited partnerships. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Securities Market and Corporate Finance A33 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Assets Millions of dollars 1991 IItteemm11 11998899 11999900 Feb. Mar. Apr. May June July Aug.r Sept. 1 Sales of own shares2 306,445 345,780 30,605 31,597 40,356 36,719 33,922 39,329 38,014 37,318 272,165 289,573 23,390 25,372 32,895 26,972 27,629 28,767 28,128 26,321 3 Net sales3 34,280 56,207 7,215 6,226 7,461 9,747 6,293 10,562 9,886 10,997 4 Assets4 553,871 570,744 616,472 632,052 647,053 671,852 661,643 690,486 712,782 729,061 5 Cash5 44,780 48,638 53,899 52,895 52,982 55,450 55,057 55,293 52,791 54,286 6 Other 509,091 522,1% 562,573 579,154 594,071 616,402 606,586 635,193 659,992 674,775 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. Includes all U.S. Treasury securities and other short-term debt securities. both money market mutual funds and limited-maturity municipal bond funds. SOURCE. Investment Company Institute. Data based on reports of membership, 2. Includes reinvestment of dividends. Excludes reinvestment of capital gains which comprises substantially all open-end investment companies registered with distributions. the Securities and Exchange Commission. Data reflect underwritings of new 3. Does not includes sales or redemptions resulting from transfers of shares companies. into or out of money market mutual funds within the same fund family. 1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION Billions of dollars; quarterly data at seasonally adjusted annual rates 1990 1991 AAccccoouunntt 11998888 11998899 11999900 Q3 Q4 Q1 Q2 Q3 1 Profits with inventory valuation and capital consumption adjustment 365.00 351.70 319.00 299.80 296.10 302.10 303.50 303.90 2 Profits before taxes 347.50 344.50 332.30 335.10 326.10 309.10 306.20 317.60 3 Profits tax liability 137.00 138.00 135.30 138.80 127.10 119.40 123.50 127.70 4 Profits after taxes 210.50 206.60 197.00 196.30 199.00 189.70 182.70 189.90 5 Dividends 115.30 127.90 133.70 133.80 136.20 137.80 136.70 138.10 6 Undistributed profits 95.20 78.70 63.30 62.50 62.80 51.90 46.10 51.80 7 Inventory valuation -27.33 -17.42 -14.24 -32.60 -21.20 6.70 9.90 -5.20 8 Capital consumption adjustment 44.71 24.61 7.1 -2.70 -8.80 -13.60 -12.60 -8.60 SOURCE. Survey of Current Business (U.S. Department of Commerce). 1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment Billions of dollars; quarterly data at seasonally adjusted annual rates 1990 1991 IInndduussttrryy 11998899 11999900 1199991111 Ql Q2 Q3 Q4 Ql Q2 Q3 Q41 1 Total nonfarm business 507.40 532.61 535.13 532.50 534.55 534.11 530.13 535.50 524.57 539.53 540.91 Manufacturing 2 Durable goods industries 82.56 82.58 78.22 86.03 84.15 82.48 79.03 81.24 79.69 77.54 74.43 3 Nondurable goods industries 101.24 110.04 107.97 106.14 110.87 111.57 110.69 109.90 107.66 107.01 107.33 Nonmanufacturing 4 Mining 9.21 9.88 9.66 9.62 9.77 9.97 10.12 9.89 10.09 9.70 8.96 Transportation 5 Railroad 6.26 6.40 6.00 6.44 6.67 5.66 6.81 55..5599 6.27 66..2288 55..8855 6 Air 6.73 8.87 9.90 9.27 9.37 9.55 7.54 11.18 10.10 9.53 8.78 7 Other 5.85 6.20 6.64 6.12 5.90 5.87 6.82 6.48 6.68 6.28 7.12 Public utilities 8 Electric 44.81 44.10 44.24 43.48 42.83 43.80 45.88 43.36 42.87 45.46 45.25 9 Gas and other 21.47 23.11 22.90 21.93 21.80 23.88 24.36 23.68 21.71 23.00 23.20 10 Commercial and other 229.28 241.43 249.60 243.46 243.18 241.32 238.87 244.19 239.50 254.73 259.98 1. Figures are amounts 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 (U.S. Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A34 Domestic Nonfinancial Statistics • January 1992 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities Billions of dollars, end of period; not seasonally adjusted 1989 1990 1991 AAccccoouunntt 11998877 11998888 11998899 Q4 Q1 Q2 Q3 Q4 Q1 Q2 ASSETS 1 Accounts receivable, gross1 388. r 426.2r 445.7r 445.7r 452.8r 468.8r 474.0"" 486.7r 478.9r 487.9r 2 Consumer 141.lr 146.2r 140.8r 140.8r 137.9r 138.6r 140.9r 131.6r 133.9r 3 Business 207.4r 236.5r 256.0r 256.0r 262.9r 274.8r 275.4r 290.8r 290.1/ 295.5r 4 Real estate 39.5r 43.5r 48.9" 48.9" 52.1r 55.4r 57.7r 59.? 57.3r 58.5r 5 LESS: Reserves for unearned income 45.3 50.0 52.0 52.0 51.9 54.3 55.1 56.6 57.0 58.7 6 Reserves for losses 6.8 7.3 7.7 7.7 7.9 8.2 8.6 9.2 10.3 10.8 7 Accounts receivable, net 336.0 368.9 386.1 386.1 393.0 406.3 410.3 420.9 411.6 418.4 8 All other 58.3 72.4 91.6 91.6 92.5 95.5 102.8 99.6 103.4 106.1 9 Total assets 394.2 441.3 477.6 477.6 485.5 501.9 513.1 520.6 515.0 524.5 LIABILITIES AND CAPITAL 10 Bank loans 16.4 15.4 14.5 14.5 13.9 15.8 15.6 19.4 22.0 22.7 11 Commercial paper 128.4 142.0 149.5 149.5 152.9 152.4 148.6 152.7 141.2 140.6 Debt 12 Other short-term 28.0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 13 Long-term 137.1 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 14 Due to parent n.a. 50.6 63.8 63.8 70.5 72.8 82.0 82.7 77.8 81.7 15 Not elsewhere classified n.a. 137.9 147.8 147.8 145.7 153.0 156.6 157.0 162.4 164.2 16 All other liabilities 52.8 59.8 62.6 62.6 61.7 66.1 68.7 66.0 68.0 72.2 17 Capital, surplus, and undivided profits 31.5 35.6 39.4 39.4 40.7 41.8 41.6 42.8 43.7 43.0 18 Total liabilities and capital 394.2 441.3 477.6 477.6 485.5 501.9 513.1 520.6 515.0 524.5 1. Excludes pools of securitized assets. 1.52 DOMESTIC FINANCE COMPANIES Business Credit Outstanding and Net Change1 Millions of dollars, end of period; seasonally adjusted, except as noted 1991 TTyyppee ooff ccrreeddiitt 11998888 11998899 11999900 Apr. May June July Aug. Sept. 1 Total 234,891 258,957 292,638 294,569 297,171 298,228 300,161 305,024 307,599 Retail financing of installment sales 2 Automotive 37,210 39,479 38,110 36,652 36,005 35,390 35,491 3344,,666655 3344,,111199 3 Equipment 28,185 29,627 31,784 32,034 32,690 32,189 32,194 33,146 34,822 4 Pools of securitized assets n.a. 698 951 777 737 707 793 833 797 Wholesale 5 Automotive 32,953 33,814 32,283 30,066 30,055 29,305 29,454 30,637 30,072 6 Equipment 5,971 6,928 11,569 10,937 11,000 10,427 11,344 10,631 10,594 7 All other 9,357 9,985 9,126 8,666 8,620 8,851 8,807 8,712 8,695 8 Pools of securitized assets n.a. 0 2,950 2,905 2,855 2,805 2,843 3,508 4,053 Leasing 9 Automotive 24,693 26,804 39,129 39,707 40,738 41,603 43,024 44,628 45,387 10 Equipment 57,658 68,240 75,626 82,750 84,126 83,961 84,311 86,145 86,732 11 Pools of securitized assets n.a. 1,247 1,849 1,765 1,700 1,725 1,750 1,679 1,844 12 Loans on commercial accounts receivable and factored commercial accounts receivable 17,687 18,511 22,475 21,265 21,772 24,040 23,125 23,366 23,204 13 All other business credit 21,176 23,623 26,784 27,045 26,873 27,225 27,025 27,073 27,279 Net change (during period) 1 Total 28,899r 24,066r 33,681 345 2,601 1,057 1,933 4,862 2,576 Retail financing of installment sales 2 Automotive 1,071 2,269 --11,,336699 4 --664477 -615 110000 -825 --554477 3 Equipment 3,111 1,442 2,157 -298 656 -501 4 952 1,676 4 Pools of securitized assets n.a. -26 253 -51 -40 -30 86 40 -36 Wholesale 5 Automotive 2,883 861 -1,532 -263 -11 -750 149 1,183 -564 6 Equipment 393 957 4,641 57 63 -573 917 -713 -37 7 All other 1,028 628 -859 -201 -47 231 -44 -95 -17 8 Pools of securitized assets n.a. 0 2,950 -449 -50 -50 38 665 545 Leasing 9 Automotive 2,596 2,111 12,325 428 1,031 865 1,421 1,604 775599 10 Equipment 14,166 10,581 7,386 1,781 1,377 -165 350 1,834 587 11 Pools of securitized assets n.a. 526 602 -103 -65 25 25 -71 165 12 Loans on commercial accounts receivable and factored commercial accounts receivable -483 825 3,964 -401 506 2,268 -914 240 -162 13 All other business credit 4,135 2,446 3,161 -158 -173 352 -199 47 207 Digitized for FR1A. SDEatRa i n this table also appear in the Board's G.20 (422) monthly statistical 2. Data on pools of securitized assets are not seasonally adjusted, http://fraser.strleolueaissef.e Fdo.ro orrgde/ ring address, see inside front cover. Federal Reserve Bank of St. Louis
Real Estate A35 1.53 MORTGAGE MARKETS Conventional Mortgages on New Homes Millions of dollars, except as noted 1991 11999900 Apr. May June July Aug. Sept. Oct. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms1 1 Purchase price (thousands of dollars) 150.0 159.6 153.2 151.4 146.8 166.7 165.1 159.0 157.8 153.4 2 Amount of loan (thousands of dollars) 110.5 117.0 112.4 114.5 109.2 121.9 121.6 115.7 114.3 115.0 3 Loan-price ratio (percent) 75.5 74.5 74.8 76.4 75.2 74.2 75.0 74.6 73.3 76.5 4 Maturity (years) 28.0 28.1 27.3 26.8 26.1 26.8 27.0 27.1 25.9 27.5 5 Fees and charges (percent of loan amount) 2.19 2.06 1.93 2.12 1.54 1.69 1.85 1.74 1.86 1.61 6 Contract rate (percent per year) 8.81 9.76 9.68 9.24 9.26 9.18 9.12 9.19 9.00 8.78 Yield (percent per year) 7 OTS series 9.18 10.11 10.01 9.60 9.52 9.46 9.43 9.48 9.30 9.04 8 HUD series4 10.30 10.21 10.08 9.51 9.46 9.60 9.46 9.22 8.88 8.76 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (HUD series)5 10.49 10.24 10.17 9.61 9.62 9.71 9.59 9.14 9.06 8.71 10 GNMA securities6 9.83 9.71 9.51 8.62 8.65 9.04 8.93 8.69 8.60 8.34 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 101,329 104,974 113,329 120,074 121,798 122,806 123,770 124,230 124,954 125,884 12 FHA/V A-insured 19,762 19,640 21,028 21,972 21,609 21,474 21,511 21,529 21,636 21,576 13 Conventional 81,567 85,335 92,302 98,102 100,189 101,332 102,259 102,701 103,318 104,308 Mortgage transactions (during period) 14 Purchases 23,110 22,518 23,959 2,942 4,450 3,145 3,183 3,069 3,032 3,408 Mortgage commitments (during period)7 15 Issued8 n.a. n.a. 23,689 3,880 3,506 3,032 2,975 3,453 3,196 4,122 16 To sell9 n.a. n.a. 5,270 839 1,066 841 1,374 1,051 762 917 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)9 17 Total 15,105 20,105 20,419 23,870 24,525 23,649 24,061 24,217 23,906 n.a. 18 FHA/V A-insured 620 590 547 504 491 486 481 475 471 n.a. 19 Conventional 14,485 19,516 19,871 21,188 21,843 23,164 23,581 23,742 23,435 n.a. Mortgage transactions (during period) 20 Purchases 44,077 78,588 75,517 7,045 8,562 10,052 8,649 9,191 9,155 n.a. 21 Sales 39,780 73,446 73,817 6,226 7,692 10,694 8,057 8,803r 9,305r 7,433 Mortgage commitments (during period)10 22 Contracted 66,026 88,519 102,401 10,036 11,334 9,008 8,890 12,430 7,468 n.a. 1. Weighted averages based on sample surveys of mortgages originated by Association (GNMA), assuming prepayment in twelve years on pools of thirtymajor institutional lender groups; compiled by the Federal Housing Finance year mortgages insured by the Federal Housing Administration or guaranteed by Board in cooperation with the Federal Deposit Insurance Corporation. the Department of Veterans Affairs carrying the prevailing ceiling rate. Monthly 2. Includes all fees, commissions, discounts, and "points" paid (by the figures are averages of Friday figures from the Wall Street Journal. borrower or the seller) to obtain a loan. 1. Includes some multifamily and nonprofit hospital loan commitments in 3. Average effective interest rates on loans closed, assuming prepayment at addition to one- to four-family loan commitments accepted in the Federal National the end of ten years; from Office of Thrift Supervision (OTS). Mortgage Association's (FNMA's) free market auction system, and through the 4. Average contract rates on new commitments for conventional first mort- FNMA-GNMA tandem plans. gages; from U.S. Department of Housing and Urban Development (HUD). 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 (FHA) for immediate 9. Includes participation as well as whole loans. delivery in the private secondary market. Based on transactions on first day of 10. Includes conventional and government-underwritten loans. The Federal subsequent month. Large monthly movements in average yields may reflect Home Loan Mortgage Corporation's mortgage commitments and mortgage transmarket adjustments to changes in maximum permissible contract rates. actions 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. backed by mortgages and guaranteed by the Government National Mortgage Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A36 Domestic Financial Statistics • January 1992 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1990 1991 TTyyppee ooff hhoollddeerr aanndd pprrooppeerrttyy 11998877 11998888 11998899 Q2 Q3 Q4 Ql Q2P 1 All holders 2,986,425 3,270,118 3,556,370 3,760,480 3,816,690 3,857,665 3,876,700 3,925,086 By type of property 2 One- to four-family residences 1,962,958 2,201,231 2,429,689 2,619,522 2,669,996 2,709,998 2,730,239 2,781,005 3 Multifamily residences 278,899 291,405 303,416 301,789 305,903 307,378 307,932 308,457 4 Commercial 657,036 692,236 739,240 755,212 756,507 756,303 754,879 751,751 5 Farm 87,532 85,247 84,025 83,957 84,284 83,987 83,650 83,873 By type of holder 6 Major financial institutions 1,665,291 1,831,472 1,931,537 1,940,366 1,933,303 1,913,322 1,895,544 1,884,850 7 Commercial banks 592,449 674,003 767,069 814,598 831,193 844,359 855,889 870,797 8 One- to four-family 275,613 334,367 389,632 431,115 445,882 456,010 463,7% 476,744 9 Multifamily 32,756 33,912 38,876 38,420 37,900 37,092 37,993 37,930 10 Commercial 269,648 290,254 321,906 327,930 330,086 334,026 336,606 338,057 11 Farm 14,432 15,470 16,656 17,133 17,326 17,231 17,493 18,066 12 Savings institutions3 860,467 924,606 910,254 860,903 836,047 801,628 776,551 754,834 13 One- to four-family 602,408 671,722 669,220 642,110 626,297 600,154 583,694 570,151 14 Multifamily 106,359 110,775 106,014 97,359 94,790 91,806 88,743 85,688 15 Commercial 150,943 141,433 134,370 120,866 114,430 109,168 103,647 98,557 16 Farm 757 676 650 568 530 500 468 439 17 Life insurance companies 212,375 232,863 254,214 264,865 266,063 267,335 263,105 259,218 18 One- to four-family 13,226 11,164 12,231 12,740 12,773 12,052 11,480 11,280 19 Multifamily 22,524 24,560 26,907 28,027 28,100 29,406 28,847 28,314 20 Commercial 166,722 187,549 205,472 214,024 214,585 215,121 212,018 208,838 21 Farm 9,903 9,590 9,604 10,075 10,605 10,756 10,760 10,787 22 Finance companies4 29,716 37,846 45,476 47,104 49,784 48,777 48,187 48,972 23 Federal and related agencies 192,721 200,570 209,498 227,818 242,695 250,761 263,079 275,394 24 Government National Mortgage Association 444 26 23 21 21 20 20 20 25 One- to four-family 25 26 23 21 21 20 20 20 26 Multifamily 419 0 0 0 0 0 0 0 27 Farmers Home Administration 43,051 42,018 41,176 41,175 41,269 41,439 41,307 41,430 28 One- to four-family 18,169 18,347 18,422 18,434 18,476 18,527 18,522 18,521 29 Multifamily 8,044 8,513 9,054 9,361 9,477 9,640 9,720 9,898 30 Commercial 6,603 5,343 4,443 4,545 4,608 4,690 4,715 4,750 31 Farm 10,235 9,815 9,257 8,835 8,708 8,582 8,350 8,261 32 Federal Housing and Veterans Administration 5,574 5,973 6,087 6,792 7,938 8,801 9,492 10,210 33 One- to four-family 2,557 2,672 2,875 3,054 3,248 3,593 3,600 3,729 34 Multifamily 3,017 3,301 3,212 3,738 4,690 5,208 5,891 6,480 35 Federal National Mortgage Association 96,649 103,013 110,721 112,855 113,718 116,628 119,1% 122,806 36 One- to four-family 89,666 95,833 102,295 103,431 103,722 106,081 108,348 111,560 37 Multifamily 6,983 7,180 8,426 9,424 9,9% 10,547 10,848 11,246 38 Federal Land Banks 34,131 32,115 29,640 29,595 29,441 29,416 29,253 29,086 39 One- to four-family 2,008 1,890 1,210 1,741 1,766 1,838 1,884 1,936 40 Farm 32,123 30,225 28,430 27,854 27,675 27,577 27,368 27,150 41 Federal Home Loan Mortgage Corporation 12,872 17,425 21,851 19,979 20,508 21,857 22,111 22,312 42 One- to four-family 11,430 15,077 18,248 17,316 17,810 19,185 19,460 19,655 43 Multifamily 1,442 2,348 3,603 2,663 2,697 2,672 2,651 2,658 44 Mortgage pools or trusts6 718,297 811,847 946,766 1,024,893 1,062,729 1,106,634 1,139,730 1,182,594 45 Government National Mortgage Association 317,555 340,527 368,367 385,456 394,859 403,613 409,929 418,421 46 One- to four-family 309,806 331,257 358,142 374,960 384,474 391,505 397,631 405,877 47 Multifamily 7,749 9,270 10,225 10,496 10,385 12,108 12,298 12,544 48 Federal Home Loan Mortgage Corporation 212,634 226,406 272,870 295,340 301,797 316,359 328,305 341,132 49 One- to four-family 205,977 219,988 266,060 287,232 293,721 308,369 319,978 332,624 50 Multifamily 6,657 6,418 6,810 8,108 8,077 7,990 8,327 8,509 51 Federal National Mortgage Association 139,960 178,250 228,232 263,330 281,806 299,833 312,101 331,089 52 One- to four-family 137,988 172,331 219,577 254,811 273,335 291,194 303,554 322,444 53 Multifamily 1,972 5,919 8,655 8,519 8,471 8,639 8,547 8,645 54 Farmers Home Administration 245 104 80 72 70 66 62 13 55 One- to four-family 121 26 21 19 18 17 14 13 56 Multifamily 0 0 0 0 0 0 0 0 57 Commercial 63 38 26 24 24 24 23 0 58 Farm 61 40 33 30 29 26 24 0 59 Individuals and others7 410,116 426,229 468,569 567,403 577,964 586,948 578,347 582,248 60 One- to four-family 246,061 259,971 294,517 382,343 390,657 398,889 391,623 395,483 61 Multifamily 80,977 79,209 81,634 82,040 83,544 84,205 82,355 81,906 62 Commercial 63,057 67,618 73,023 83,557 84,350 84,538 85,182 85,690 63 Farm 20,021 19,431 19,395 19,463 19,412 19,316 19,187 19,170 1. Based on data from various institutional and governmental sources, with 4. Assumed to be entirely loans on one- to four-family residences. figures for some quarters estimated in part by the Federal Reserve. Multifamily 5. Securities guaranteed by the Fanners Home Administration (FmHA) sold to debt refers to loans on structures of five or more units. the Federal Financing Bank were reallocated from FmHA mortgage pools to 2. Includes loans held by nondeposit trust companies but not loans held by FmHA mortgage holdings in 1986:4 because of accounting changes by the FmHA. bank trust 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 institutions insured by the Federal Savings and Loan Insurance as a separate line item. Corporation include loans in process and other contra-assets (credit balance 7. Other holders include mortgage companies, real estate investment trusts, accounts that must be subtracted from the corresponding gross asset categories to state and local credit agencies, state and local retirement funds, noninsured yield net asset levels). pension funds, credit unions, and other U.S. agencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Consumer Installment Credit A37 1.55 CONSUMER INSTALLMENT CREDIT Total Outstanding and Net Change1 Millions of dollars, amounts outstanding, end of period 1991 HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt 11999900 Jan. Feb. Mar. Apr. May June July Aug.r Sept. Seasonally adjusted 1 Total 718,863 735,102 732,962 732,762 732,442 733,621 732,289 730,591 729,962 729,108 727,563 2 Automobile 290,676 284,585 283,746 282,626 280,689 279,746 276,494 274,4% 273,565 271,906 269,655 3 Revolving 199,082 220,110 219,588 221,556 224,817 225,994 227,301 227,737 228,199 229,453 231,860 4 Mobile home 22,471 20,919 20,459 20,200 20,123 20,098 19,796 19,907 19,615 19,495 18,970 5 Other 206,633 209,487 209,170 208,379 206,813 207,782 208,697 208,451 208,582 208,253 207,078 Not seasonally adjusted 6 Total 730,901 748,300 736,399 729,264 725,462 727,907 727,717 728,023 727,754 731,531 730,587 By major holder 7 Commercial banks 342,770 347,466 341,426 339,282 335,754 336,425 334,746 333,442 334,273 335,662 335,019 8 Finance companies 140,832 137,450 134,965 133,021 131,552 133,462 134,045 133,903 134,120 135,509 132,471 9 Credit unions 93,114 92,911 91,991 91,131 90,772 91,413 91,549 91,924 92,017 92,843 92,867 10 Retailers 44,154 43,552 40,945 38,864 38,497 37,817 36,782 36,702 36,392 37,2% 37,281 11 Savings institutions 57,253 45,616 44,939 43,875 42,491 41,707 40,764 39,827 39,012 37,893 36,839 12 Gasoline companies 3,935 4,822 4,766 4,404 4,2% 4,357 4,507 4,591 4,712 4,857 4,753 13 Pools of securitized assets 48,843 76,483 77,367 78,687 82,100 82,726 85,324 87,634 87,228 87,471 91,357 By major type of credit* 14 Automobile 290,705 284,813 282,214 279,913 277,798 277,508 275,582 275,018 274,222 274,190 272,783 15 Commercial banks 126,288 126,259 126,235 124,745 123,411 122,710 121,631 121,605 121,319 120,577 119,898 16 Finance companies 82,721 74,3% 72,015 70,287 69,233 70,500 69,689 70,304 70,444 71,571 69,853 17 Pools of securitized assets 18,235 24,537 25,123 26,872 27,755 26,875 27,085 26,039 25,609 25,071 26,341 18 Revolving 210,310 232,370 223,606 220,714 221,400 222,627 224,301 225,5% 226,145 229,224 231,072 19 Commercial banks 130,811 132,433 125,814 125,673 124,619 126,009 126,047 124,106 124,645 125,787 125,374 20 Retailers 39,583 39,029 36,510 34,509 34,179 33,513 32,458 32,381 32,076 32,962 32,964 21 Gasoline companies 3,935 4,822 4,766 4,404 4,2% 4,357 4,507 4,591 4,712 4,857 4,753 22 Pools of securitized assets2 23,477 44,335 44,773 44,451 46,722 47,116 49,667 52,897 53,094 54,017 56,438 23 Mobile home 22,240 20,666 20,614 20,362 20,030 20,052 19,721 19,875 19,639 19,468 19,074 24 Commercial banks 9,112 9,763 9,748 9,730 9,632 9,565 9,386 9,652 9,552 9,534 9,714 25 Finance companies 4,716 5,252 5,367 5,330 5,328 5,573 5,595 5,652 5,669 5,700 5,300 26 Other 207,646 210,451 209,%5 208,275 206,234 207,720 208,113 207,534 207,748 208,649 207,658 27 Commercial banks 76,559 79,011 79,629 79,134 78,092 78,141 77,682 78,079 78,757 79,764 80,033 28 Finance companies 53,395 57,801 57,583 57,404 56,991 57,388 58,761 57,947 58,007 58,238 57,318 29 Retailers 4,571 4,523 4,435 4,355 4,318 4,304 4,324 4,321 4,316 4,334 4,317 30 Pools of securitized assets 7,131 7,611 7,471 7,364 7,603 8,735 8,572 8,698 8,525 8,383 8,578 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 include estimates for certain holders for which only consumer credit Data in this table also appear in the Board's G.19 (421) monthly statistical totals are available. release. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A38 Domestic Nonfinancial Statistics • January 1992 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1 Percent per year, except as noted 1991 IItteemm 11998888 11998899 11999900 Mar. Apr. May June July Aug. Sept. INTEREST RATES Commercial banks? 1 48-month new car 10.85 12.07 11.78 n.a. n.a. 11.28 n.a. n.a. 11.06 n.a. 2 24-month personal 14.68 15.44 15.46 n.a. n.a. 15.16 n.a. n.a. 15.24 n.a. 3 120-month mobile home 13.54 14.11 14.02 n.a. n.a. 13.80 n.a. n.a. 13.73 n.a. 4 Credit card 17.78 18.02 18.17 n.a. n.a. 18.22 n.a. n.a. 18.24 n.a. Auto finance companies 5 New car 12.60 12.62 12.54 13.14 13.14 12.95 12.77 12.55 12.40 1122..3388 6 Used car 15.11 16.18 15.99 15.82 15.82 15.85 15.74 15.66 15.63 15.60 OTHER TERMS4 Maturity (months) 7 New car 56.2 54.2 54.6 55.2 55.4 55.5 55.5 55.5 55.4 55.4 8 Used car 46.7 46.6 46.1 47.2 47.3 47.3 47.3 47.4 47.2 47.2 Loan-to-value ratio 9 New car 94 91 87 87 87 87 88 88 88 87 10 Used car 98 97 95 97 97 96 97 96 97 96 Amount financed (dollars) 11 New car 11,663 12,001 12,071 12,121 11,993 12,204 12,343 12,572 12,518 12,460 12 Used car 7,824 7,954 8,289 8,763 8,751 8,873 8,916 8,989 8,902 8,996 1. Data in this table also appear in the Board's G.19 (421) monthly statistical 3. Before 1983 the maturity for new car loans was 36 months, and for mobile release. For ordering address, see inside front cover. home loans was 84 months. 2. Data are available only for the second month of each quarter. 4. At auto finance companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Flow of Funds A39 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; quarterly data at seasonally adjusted annual rates 1989 1990 1991 IInnssttrruummeenntt oorr sseeccttoorr 11998866 11998877 11998888 11998899 11999900 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors .. 836.9 687.0 760.8 678.2 639.3 620.2 803.4 596.9 657.7 499.3 411.4 462.6 By lending sector and instrument ? 215.0 144.9 157.5 151.6 272.5 185.0 247.3 222288..22 228866..11 332288..44 220044..77 224411..88 3 Treasury securities 214.7 143.4 140.0 150.0 264.4 189.6 217.8 222.9 287.5 329.4 228.7 248.0 4 Agency issues and mortgages .4 1.5 17.4 1.6 8.2 -4.6 29.6 5.4 -1.3 -1.0 -24.0 -6.2 5 Private 621.9 542.1 603.3 526.6 366.8 435.2 556.1 368.7 371.6 170.9 206.7 220.9 By instrument 6 Debt capital instruments 465.8 453.2 459.2 379.8 298.2 347.0 391.0 309.3 275.5 216.8 223300..55 229922..77 7 Tax-exempt obligations 22.7 49.3 49.8 30.4 20.1 19.1 12.4 24.5 30.0 13.5 11.3 27.5 8 Corporate bonds 126.8 79.4 102.9 73.7 49.7 87.4 30.2 68.8 32.8 67.1 80.6 95.3 9 Mortgages 316.3 324.5 306.5 275.7 228.3 240.5 348.4 216.0 212.7 136.3 138.6 169.9 10 Home mortgages 218.7 234.9 231.0 218.0 212.6 214.3 298.7 220.0 184.7 147.1 136.8 176.6 11 Multifamily residential 33.5 24.4 16.7 16.4 6.5 9.5 22.7 -15.5 16.2 2.7 4.6 2.9 1? Commercial 73.6 71.6 60.8 42.7 9.3 19.9 26.5 13.4 9.9 -12.8 -3.0 -8.0 n -9.5 -6.4 -2.1 -1.5 .0 -3.2 .5 -1.9 2.0 -.7 .2 -1.6 14 Other debt instruments 156.1 88.9 144.1 146.8 68.7 88.2 165.1 59.4 96.0 -45.9 -23.8 -71.9 15 Consumer credit 58.0 33.5 50.2 39.1 14.3 44.1 30.4 2.8 21.3 2.5 -23.6 -20.4 16 Bank loans n.e.c 66.9 10.0 39.8 39.9 1.3 7.7 16.3 15.4 -2.5 -24.2 14.2 -51.6 17 Open market paper -9.3 2.3 11.9 20.4 9.7 -6.9 69.6 -6.2 17.3 -41.7 5.1 -22.6 18 Other 40.5 43.2 42.2 47.4 43.4 43.3 48.8 47.4 60.0 17.5 -19.5 22.6 By borrowing sector 19 State and local government 36.2 48.8 45.6 29.6 17.2 16.5 16.0 1177..22 2288..11 77..66 1122..22 1166..88 70 293.0 302.2 314.9 285.0 254.0 291.8 377.2 257.5 227.3 154.0 162.6 199.7 71 Nonfinancial business 292.7 191.0 242.8 211.9 95.6 126.9 162.9 94.0 116.2 9.4 32.0 4.3 ?? -16.3 -10.6 -7.5 1.6 2.6 8.9 6.2 -10.8 11.7 3.1 4.7 -1.6 73 Nonfarm noncorporate 99.2 77.9 65.7 50.8 13.7 35.0 45.5 3.5 19.6 -14.0 -18.7 -3.6 24 Corporate 209.7 123.7 184.6 159.5 79.4 83.1 111.2 101.3 84.8 20.2 46.0 9.5 25 Foreign net borrowing in United States 9.7 4.5 6.3 10.9 23.5 16.9 2.0 41.2 29.7 21.1 50.6 -53.0 76 3.1 7.4 6.9 5.3 21.6 -1.0 32.7 25.8 1.2 26.5 8.9 22.0 77 Bank loans n.e.c -1.0 -3.6 -1.8 -.1 -2.9 -4.3 -6.9 -1.8 1.9 -4.7 10.3 -7.1 28 Open market paper 11.5 2.1 8.7 13.3 12.3 22.2 -16.4 23.1 27.3 15.3 45.5 -52.0 29 U.S. government loans -3.9 -1.4 -7.5 -7.5 -7.5 .1 -7.3 -5.9 -.8 -16.0 -14.1 -15.8 30 Total domestic plus foreign 846.6 691.5 767.1 689.1 662.8 637.1 805.5 638.1 687.3 520.4 462.0 409.7 Financial sectors 31 Total net borrowing by financial sectors 285.1 300.2 247.6 205.5 202.1 187.3 190.2 170.4 180.0 267.7 102.6 95.4 By instrument 32 U.S. government-related 154.1 171.8 119.8 151.0 167.4 156.4 171.7 184.0 139.2 174.6 155.8 150.6 33 Sponsored-credit-agency securities 15.2 30.2 44.9 25.2 17.1 -4.7 9.7 17.1 22.3 19.5 14.5 -22.4 34 Mortgage pool securities 139.2 142.3 74.9 125.8 150.3 161.1 162.0 166.8 116.9 155.5 141.3 173.0 35 Loans from U.S. government -.4 -.8 .0 .0 -.1 .0 .0 .0 .0 -.5 .0 .0 36 Private 131.0 128.4 127.8 54.5 34.7 30.9 18.5 -13.5 40.8 93.1 -53.2 -55.2 37 Corporate bonds 82.9 78.9 51.7 36.8 49.8 39.6 33.5 71.2 18.0 76.7 39.5 63.2 38 Mortgages .1 .4 .3 .0 .3 -.4 .1 .2 .3 .5 .1 -.1 39 Bank loans n.e.c 4.0 -3.2 1.4 1.8 .7 4.2 -2.3 -.6 2.0 3.8 1.0 -5.8 40 Open market paper 24.2 27.9 54.8 26.9 8.6 36.3 9.2 -53.4 51.0 27.6 -65.9 -59.7 41 Loans from Federal Home Loan Banks ... 19.8 24.4 19.7 -11.0 -24.7 -48.8 -22.0 -30.9 -30.5 -15.5 -27.9 -52.9 By borrowing sector 42 Sponsored credit agencies 14.9 29.5 44.9 25.2 17.0 -4.7 9.7 17.1 22.3 19.0 14.5 -22.4 43 Mortgage pools 139.2 142.3 74.9 125.8 150.3 161.1 162.0 166.8 116.9 155.5 141.3 173.0 44 Private 131.0 128.4 127.8 54.5 34.7 30.9 18.5 -13.5 40.8 93.1 -53.2 -55.2 45 Commercial banks -3.6 6.2 -3.0 -1.4 -1.1 -.7 -5.7 -13.9 -5.6 20.9 -22.0 -16.6 46 Bank affiliates 15.2 14.3 5.2 6.2 -27.7 -3.9 -8.0 -32.1 -40.4 -30.2 -18.5 -7.1 47 Savings and loan associations 20.9 19.6 19.9 -14.1 -31.2 -56.2 -15.8 -53.5 -31.9 -23.4 -29.5 -55.6 48 Mutual savings banks 4.2 8.1 1.9 -1.4 -.5 .7 -8.3 6.5 -4.2 4.0 -2.2 -1.4 49 Finance companies 54.7 40.8 67.7 46.3 57.1 52.6 28.2 27.0 97.3 75.7 -9.2 -11.7 50 Real estate investment trusts (REITs) .8 .3 3.5 -1.9 -1.9 .1 -3.8 -2.7 -1.8 .6 -.7 -.2 51 Securitized credit obligation (SCO) issuers 39.0 39.1 32.5 20.8 40.1 38.2 32.1 55.1 27.5 45.6 28.9 37.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A40 DomesticN onfinancialS tatistics • January 1992 1.57—Continued 1989 1990 1991 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998866 11998877 11998888 11998899 11999900 Q4 Ql Q2 Q3 Q4 Ql Q2 All sectors 52 Total net borrowing, all sectors 1,131.7 991.7 1,014.7 894.5 864.9 824.4 995.7 808.5 867.3 788.1 564.7 505.1 53 U.S. government securities 369.5 317.5 277.2 302.6 440.0 341.4 419.0 412.2 425.4 503.4 360.5 392.4 54 State and local obligations 22.7 49.3 49.8 30.4 20.1 19.1 12.4 24.5 30.0 13.5 11.3 27.5 55 Corporate and foreign bonds 212.8 165.7 161.5 115.8 121.1 125.9 96.4 165.8 52.0 170.3 129.0 180.5 56 Mortgages 316.4 324.9 306.7 275.7 228.6 240.1 348.5 216.2 213.0 136.7 138.7 169.8 57 Consumer credit 58.0 33.5 50.2 39.1 14.3 44.1 30.4 2.8 21.3 2.5 -23.6 -20.4 58 Bank loans n.e.c 69.9 3.2 39.4 41.5 -.9 7.5 7.1 13.0 1.4 -25.1 25.6 -64.5 59 Open market paper 26.4 32.3 75.4 60.6 30.7 51.6 62.3 -36.6 95.7 1.2 -15.2 -134.3 60 Other loans 56.1 65.5 54.4 28.9 11.1 -5.4 19.5 10.6 28.6 -14.5 -61.6 -46.0 61 MEMO: U.S. government, cash balance .0 -7.9 10.4 -5.9 8.3 -7.3 22.9 -38.1 21.1 27.4 51.6 -64.3 Totals net of changes in U.S. government cash balances 62 Net borrowing by domestic nonfinancial sectors 836.9 694.9 750.4 684.1 631.0 627.6 780.5 635.0 636.6 471.9 359.8 526.9 63 Net borrowing by U.S. government 215.0 152.8 147.1 157.5 264.2 192.4 224.4 266.3 265.1 301.0 153.1 306.1 External corporate equity funds raised in United States 64 Total net share issues 86.8 10.9 -124.2 -63.7 9.6 14.9 -9.2 48.0 -24.1 23.6 108.0 173.9 65 Mutual funds 159.0 73.9 1.1 41.3 61.4 72.4 47.8 71.0 46.1 80.6 87.8 122.2 66 All other -72.2 -63.0 -125.3 -105.1 -51.7 -57.6 -57.0 -22.9 -70.2 -56.9 20.2 51.7 67 Nonfinancial corporations -85.0 -75.5 -129.5 -124.2 -63.0 -79.3 -69.0 -48.0 -74.0 -61.0 -12.0 11.0 68 Financial corporations 11.6 14.6 3.3 2.4 4.3 4.5 10.3 1.3 4.8 .9 3.4 4.3 69 Foreign shares purchased in United States 1.2 -2.1 .9 16.7 6.9 17.2 1.7 23.8 -1.0 3.2 28.8 36.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Flow of Funds A41 1.58 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS Billions of dollars, except as noted; quarterly data at seasonally adjusted annual rates 1989 1990 1991 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998866 11998877 11998888 11998899 11999900 Q4 Ql Q2 Q3 Q4 Ql Q2 1 Total funds advanced in credit markets to domestic 836.9 687.0 760.8 678.2 639.3 620.2 803.4 596.9 657.7 499.3 411.4 462.6 2 Total net advances by federal agencies and foreign 280.2 248.8 210.7 187.6 261.7 203.8 221.8 299.4 325.6 200.0 274.7 251.0 By instrument 69.4 70.1 85.2 30.7 74.4 27.1 4.4 111.9 139.1 42.1 122.6 74.4 136.3 139.1 86.3 137.9 184.1 178.3 197.5 191.5 160.8 186.7 176.0 211.4 19.8 24.4 19.7 -11.0 -24.7 -48.8 -22.0 -30.9 -30.5 -15.5 -27.9 -52.9 54.7 15.1 19.4 30.0 27.8 47.1 41.8 26.8 56.1 -13.3 4.0 18.1 By lender 9.7 -7.9 -9.4 -2.4 33.6 5.7 37.7 36.2 63.3 -2.7 30.3 32.1 153.3 169.3 112.0 125.3 166.7 158.4 187.4 163.1 165.6 150.8 158.7 149.0 19.4 24.7 10.5 -7.3 8.1 -4.6 -6.3 40.4 24.4 -25.9 53.3 12.2 97.8 62.7 97.6 72.1 53.2 44.2 3.0 59.8 72.3 77.9 32.4 57.7 Agency and foreign borrowing not included in line I 11 Sponsored credit agencies and mortgage pools 154.1 171.8 119.8 151.0 167.4 156.4 171.7 184.0 139.2 174.6 155.8 150.6 9.7 4.5 6.3 10.9 23.5 16.9 2.0 41.2 29.7 21.1 50.6 -53.0 720.5 614.5 676.2 652.5 568.5 589.7 755.3 522.7 501.0 495.0 343.2 309.2 300.1 247.4 192.1 271.9 365.6 314.3 414.6 300.3 286.2 461.4 237.8 317.9 22.7 49.3 49.8 30.4 20.1 19.1 12.4 24.5 30.0 13.5 11.3 27.5 89.7 66.9 91.3 66.1 65.4 70.6 53.4 82.6 31.8 93.8 66.0 94.1 115.9 120.2 161.3 96.5 35.0 45.5 123.8 13.0 40.0 -37.0 -34.5 -32.0 212.0 155.2 201.4 176.6 57.7 91.5 129.2 71.4 82.4 -52.2 34.6 -151.2 19.8 24.4 19.7 -11.0 -24.7 -48.8 -22.0 -30.9 -30.5 -15.5 -27.9 -52.9 20 Total credit market funds advanced by private financial 730.0 528.4 562.3 511.1 394.6 561.9 444.8 266.4 366.7 500.4 185.8 91.6 By lending institution 198.1 135.4 156.3 177.3 118.7 184.3 184.1 132.1 101.7 56.9 134.2 15.7 107.6 136.8 120.4 -90.9 -153.4 -201.9 -56.6 -210.4 -168.6 -178.0 -154.8 -147.6 160.1 179.7 198.7 177.9 182.4 205.1 160.0 231.6 187.5 150.6 125.4 134.9 264.2 76.6 86.9 246.8 246.9 374.5 157.3 113.1 246.1 470.9 80.9 88.6 By source of funds 25 Private domestic deposits and repurchase agreements ... 277.1 162.8 229.2 225.2 60.5 208.0 120.2 28.4 60.1 33.2 216.7 -74.0 131.0 128.4 127.8 54.5 34.7 30.9 18.5 -13.5 40.8 93.1 -53.2 -55.2 321.8 237.1 205.3 231.4 299.4 323.1 306.1 251.6 265.9 374.1 22.3 220.8 12.9 43.7 9.3 -9.9 24.0 -20.6 39.9 7.8 103.5 -55.1 43.8 -124.7 1.7 -5.8 7.3 -3.4 5.3 5.0 13.1 -13.4 18.2 3.4 30.1 -39.2 119.9 135.4 177.6 140.5 159.9 193.9 137.9 211.9 144.2 145.6 60.1 118.8 187.3 63.9 11.0 104.2 110.2 144.7 115.2 45.3 .0 280.2 -111.7 265.8 Private domestic nonfinancial investors 121.5 214.6 241.7 195.9 208.6 58.7 329.0 242.8 175.0 87.7 104.2 162.4 27.0 86.0 129.0 134.3 148.1 65.8 198.0 154.0 165.2 75.3 85.2 156.4 -19.9 61.8 53.5 28.4 -1.0 12.8 -1.5 10.0 15.6 -27.9 1.8 13.2 52.9 23.3 -9.4 .7 17.5 14.6 38.9 19.7 -74.7 86.1 9.1 57.4 9.9 15.8 36.4 5.4 18.2 -64.6 60.6 33.8 16.8 -38.4 -7.7 -67.8 51.7 27.6 32.2 27.1 25.7 30.1 33.0 25.2 52.1 -7.4 15.9 3.3 297.5 179.3 232.8 241.3 90.1 230.6 137.3 64.3 95.9 62.9 236.2 -41.8 14.4 19.0 14.7 11.7 22.6 10.1 26.1 23.0 32.2 9.1 46.1 5.7 96.4 -.9 12.9 1.5 .6 65.8 1.4 -18.9 13.4 6.4 31.9 -7.3 120.6 76.0 122.4 100.5 59.4 109.1 107.7 21.5 59.6 48.9 101.0 16.7 43.2 28.9 20.2 85.2 61.8 65.6 72.2 4.7 110.9 59.3 128.5 -29.8 -3.2 37.2 40.8 23.1 -46.8 -13.4 -26.4 -1.8 -97.9 -61.2 -2.3 -52.5 20.2 21.6 32.9 14.9 -14.5 -19.2 -34.7 22.8 -25.8 -20.1 -42.4 -1.1 55..99 -2.5 -11.2 4.4 7.0 12.4 -8.9 12.8 3.6 20.6 -26.6 26.5 46 Total of credit market instruments, deposits, and 419.0 393.9 474.5 437.2 298.7 289.3 466.3 307.0 270.9 150.6 340.4 120.6 MEMO 33.1 36.0 27.5 27.2 39.5 32.0 27.5 46.9 47.4 38.4 59.4 61.3 101.3 86.0 83.2 78.3 69.4 95.3 58.9 51.0 73.2 101.1 54.1 29.6 110.7 106.4 106.9 62.2 77.2 23.6 42.9 67.5 175.8 22.8 76.2 -66.9 Corporate equities not included above 86.8 10.9 -124.2 -63.7 9.6 14.9 -9.2 48.0 -24.1 23.6 108.0 173.9 159.0 73.9 1.1 41.3 61.4 72.4 47.8 71.0 46.1 80.6 87.8 122.2 -72.2 -63.0 -125.3 -105.1 -51.7 -57.6 -57.0 -22.9 -70.2 -56.9 20.2 51.7 50.9 32.0 -2.9 17.2 31.9 76.9 41.1 72.8 -48.2 61.9 44.0 73.4 3355..99 -21.2 -121.4 -80.9 -22.3 -62.1 -50.3 -24.8 24.1 -38.3 64.1 100.6 NOTES BY LINE NUMBER. 30. Excludes 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 lines 11 and 12. Also line 20 less line 26 plus line 32. 46. Sum of lines 32 and 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, plus bank borrowings from foreign NOTE. Full statements for sectors and transaction types in flows and in amounts branches, plus 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, 29. Demand deposits and note balances at commercial banks. D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A42 Domestic Nonfinancial Statistics • January 1992 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING Billions of dollars, end of period 1989 1990 1991 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998866 11998877 11998888 11998899 Q4 Ql Q2 Q3 Q4 Ql Q2 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 7,646.3 8,343.9 9,096.0 9,805.2 9,805.2 10,073.3 10,226.8 10,386.9 10,557.3 10,615.5 10,735.3 By lending sector and instrument 2 U.S. government 1,815.4 1,960.3 2,117.8 2,269.4 2,269.4 2,360.9 2,401.7 2,470.2 2,568.9 2,624.7 2,667.7 Treasury securities 1,811.7 1,955.2 2,095.2 2,245.2 2,245.2 2,329.3 2,368.8 2,437.6 2,536.5 2,598.4 2,642.9 4 Agency issues and mortgages 3.6 5.2 22.6 24.2 24.2 31.6 32.9 32.6 32.4 26.4 24.8 5 Private 5,831.0 6,383.6 6,978.2 7,535.8 7,535.8 7,712.5 7,825.1 7,916.7 7,988.4 7,990.8 8,067.7 By instrument 6 Debt capita] instruments 3,962.7 4,427.9 4,886.4 5,283.3 5,283.3 5,451.9 5,533.8 5,608.8 5,669.9 5,709.8 5,787.5 7 Tax-exempt obligations 679.1 728.4 790.8 821.2 821.2 822.2 827.2 837.9 841.3 842.2 847.6 8 Corporate bonds 669.4 748.8 851.7 925.4 925.4 933.0 950.2 958.4 975.1 995.3 1,019.1 9 Mortgages 2,614.2 2,950.7 3,243.8 3,536.6 3,536.6 3,696.7 3,756.4 3,812.6 3,853.4 3,872.3 3,920.9 10 Home mortgages 1,720.8 1,943.1 2,173.9 2,404.3 2,404.3 2,558.3 2,619.5 2,670.0 2,710.0 2,730.1 2,781.0 11 Multifamily residential 246.2 270.0 286.7 304.4 304.4 304.5 300.5 304.5 306.0 306.5 307.1 12 Commercial 551.4 648.7 696.4 742.6 742.6 750.0 752.5 753.8 753.5 752.0 748.9 N Farm 95.8 88.9 86.8 85.3 85.3 83.9 84.0 84.3 84.0 83.6 83.9 14 Other debt instruments 1,868.2 1,955.7 2,091.9 2,252.6 2,252.6 2,260.6 2,291.3 2,307.9 2,318.5 2,281.0 2,280.1 15 Consumer credit 659.8 693.2 743.5 790.6 790.6 782.3 789.4 798.7 808.9 782.3 784.2 16 Bank loans n.e.c 666.0 673.3 713.1 763.0 763.0 748.5 756.1 753.6 757.4 749.0 740.3 17 Open market paper 62.9 73.8 85.7 107.1 107.1 126.0 128.7 131.8 116.9 119.9 118.4 18 Other 479.6 515.3 549.6 591.9 591.9 603.7 617.1 623.8 635.4 629.9 637.3 By borrowing sector 19 State and local government 510.1 558.9 604.5 634.1 634.1 633.8 636.9 647.1 649.1 650.2 652.8 20 Household 2,596.1 2,879.1 3,191.5 3,501.8 3,501.8 3,654.8 3,726.5 3,790.3 3,847.2 3,853.3 3,911.3 21 Nonfinancial business 2,724.8 2,945.6 3,182.2 3,400.0 3,400.0 3,423.9 3,461.7 3,479.4 3,492.2 3,487.3 3,503.6 22 Farm 156.6 145.5 137.6 139.2 139.2 137.3 138.7 141.6 140.5 139.3 143.0 23 Nonfarm noncorporate 997.6 1,075.4 1,145.1 1,195.9 1,195.9 1,208.3 1,208.7 1,209.0 1,209.6 1,205.9 1,204.6 24 Corporate 1,570.6 1,724.6 1,899.5 2,064.8 2,064.8 2,078.3 2,114.3 2,128.7 2,142.1 2,142.1 2,155.9 25 Foreign credit market debt held in United States 238.3 244.6 253.9 261.5 261.5 261.7 273.0 279.4 284.9 297.2 285.1 26 Bonds 74.9 82.3 89.2 94.5 94.5 103.3 108.4 108.9 116.1 118.9 123.0 27 Bank loans n.e.c 26.9 23.3 21.5 21.4 21.4 18.9 19.3 19.8 18.5 20.4 19.5 28 Open market paper 37.4 41.2 49.9 63.0 63.0 59.3 65.1 71.5 75.3 87.0 74.0 29 U.S. government loans 99.1 97.7 93.2 82.6 82.6 80.2 80.2 79.3 75.0 70.9 68.6 30 Total credit market debt owed by nonfinancial sectors, domestic and foreign 7,884.7 8,588.5 9,349.9 10,066.8 10,066.8 10,335.0 10,499.8 10,666.3 10,842.2 10,912.8 11,020.5 Financial sectors 31 Total credit market debt owed by financial sectors 1,529.8 1,836.8 2,084.4 2,322.4 2,322.4 2,359.0 2,405.5 2,448.8 2,527.7 2,540.1 2,567.3 By instrument 32 U.S. government-related 810.3 978.6 1,098.4 1,249.3 1,249.3 1,288.2 1,330.1 1,367.9 1,418.4 1,452.2 1,485.1 33 Sponsored credit-agency securities 273.0 303.2 348.1 373.3 373.3 378.1 381.0 384.4 393.7 397.0 389.6 34 Mortgage pool securities 531.6 670.4 745.3 871.0 871.0 905.2 944.2 978.5 1,019.9 1,050.4 1,090.7 35 Loans from U.S. government 5.7 5.0 5.0 5.0 5.0 5.0 5.0 5.0 4.9 4.9 4.9 36 Private 719.5 858.2 986.1 1,073.0 1,073.0 1,070.8 1,075.4 1,080.9 1,109.3 1,087.9 1,082.2 37 Corporate bonds 287.4 366.3 418.0 482.7 482.7 491.7 510.0 514.4 533.6 543.0 559.5 38 Mortgages 2.7 3.1 3.4 3.4 3.4 4.0 4.0 4.1 4.2 4.2 4.2 39 Bank loans n.e.c 36.1 32.8 34.2 36.0 36.0 33.2 34.8 34.9 36.7 34.8 35.2 40 Open market paper 284.6 322.9 377.7 409.1 409.1 409.1 400.3 409.6 417.7 398.8 388.6 41 Loans from Federal Home Loan Banks 108.6 133.1 152.8 141.8 141.8 132.9 126.3 117.9 117.1 107.0 94.7 By borrowing sector 42 Sponsored credit agencies 278.7 308.2 353.1 378.3 378.3 383.0 385.9 389.4 398.5 401.8 394.4 43 Mortgage pools 531.6 670.4 745.3 871.0 871.0 905.2 944.2 978.5 1,019.9 1,050.4 1,090.7 44 Private financial sectors 719.5 858.2 986.1 1,073.0 1,073.0 1,070.8 1,075.4 1,080.9 1,109.3 1,087.9 1,082.2 45 Commercial banks 75.6 81.8 78.8 77.4 77.4 73.2 71.6 70.7 76.3 68.1 65.9 46 Bank affiliates 116.8 131.1 136.2 142.5 142.5 142.0 134.3 122.9 114.8 111.7 110.3 47 Savings and loan associations 119.8 139.4 159.3 145.2 145.2 137.1 125.6 116.2 114.0 102.8 90.8 48 Mutual savings banks 8.6 16.7 18.6 17.2 17.2 15.4 16.7 16.2 16.7 16.4 15.8 49 Finance companies 328.1 378.8 446.1 496.2 496.2 499.2 509.7 530.9 551.8 545.9 547.0 .50 Real estate investment trusts (REITs) 6.5 7.3 11.4 10.1 10.1 10.9 10.4 10.2 10.6 10.6 10.8 51 Securitized credit obligation (SCO) issuers... 64.0 103.1 135.7 184.4 184.4 193.1 206.9 213.8 225.2 232.4 241.7 All sectors 52 Total credit market debt, domestic and foreign.. 9,414.4 10,425.3 11,434.3 12,389.1 12,389.1 12,694.0 12,905.3 13,115.1 13,369.9 13,452.9 13,587.7 53 U.S. government securities 2,620.0 2,933.9 3,211.1 3,513.7 3,513.7 3,644.1 3,726.9 3,833.1 3,982.5 4,072.1 4,147.9 54 State and local obligations 679.1 728.4 790.8 821.2 821.2 822.2 827.2 837.9 841.3 842.2 847.6 55 Corporate and foreign bonds 1,031.7 1,197.4 1,358.9 1,502.6 1,502.6 1,527.9 1,568.6 1,581.6 1,624.8 1,657.3 1,701.6 56 Mortgages 2,617.0 2,953.8 3,247.2 3,540.1 3,540.1 3,700.7 3,760.5 3,816.7 3,857.7 3,876.5 3,925.1 57 Consumer credit 659.8 693.2 743.5 790.6 790.6 782.3 789.4 798.7 808.9 782.3 784.2 58 Bank loans n.e.c 729.0 729.5 768.9 820.3 820.3 800.7 810.2 808.3 812.6 804.1 794.9 59 Open market paper 384.9 437.9 513.4 579.2 579.2 594.4 594.0 612.9 609.9 605.7 581.1 60 Other loans 693.1 751.1 800.5 821.4 821.4 821.7 828.5 826.0 832.3 812.7 805.5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Flow of Funds A43 1.60 SUMMARY OF CREDIT MARKET CLAIMS, BY HOLDER Billions of dollars, except as noted, end of period 1989r 1990* 1991R Transaction category or sector 11998866rr 11998877rr 11998888rr 11998899rr Q4 Ql Q2 Q3 Q4 Ql Q2 1 Total funds advanced in credit markets to domestic nonfinancial sectors 7,646.3 8,343.9 9,096.0 9,805.2 9,805.2 10,073.3 10,226.8 10,386.9 10,557.3 10,615.5 10,735.3 2 Total held by federal agencies and foreign sector .. 1,779.4 2,006.6 2,199.7 2,379.3 2,379.3 2,423.3 2,502.6 2,584.1 2,645.8 2,698.2 2,765.3 By instrument 3 U.S. government securities 509.8 570.9 651.5 682.1 682.1 682.7 714.1 745.6 763.0 786.3 808.3 4 Residential mortgages 678.5 814.1 900.4 1,038.4 1,038.4 1,081.5 1,126.5 1,171.8 1,221.0 1,260.3 1,310.0 5 Federal Home Loan Bank advances to thrifts.... 108.6 133.1 152.8 141.8 141.8 132.9 126.3 117.9 117.1 107.0 94.7 6 Other loans and securities 482.4 488.6 495.1 517.0 517.0 526.3 535.8 548.8 544.7 544.6 552.2 By type of lender 7 U.S. government 255.3 240.0 217.6 207.1 207.1 217.1 227.4 242.7 240.6 248.9 258.2 8 Sponsored credit agencies and mortgage pools ... 835.9 1,001.0 1,113.0 1,238.2 1,238.2 1,274.8 1,315.0 1,360.5 1,403.4 1,434.8 1,471.0 9 Monetary authority 205.5 230.1 240.6 233.3 233.3 224.4 237.8 240.8 241.4 247.3 253.7 10 Foreign 482.8 535.5 628.5 700.6 700.6 707.0 722.5 740.2 760.4 767.2 782.4 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 1,249.3 1,288.2 1,330.1 1,367.9 1,418.4 1,452.2 1,485.1 12 Foreign 238.3 244.6 253.9 261.5 261.5 261.7 273.0 279.4 284.9 297.2 285.1 13 Total private domestic holdings 6,915.6 7,560.4 8,248.5 8,936.8 8,936.8 9,199.9 9,327.3 9,450.1 9,614.8 9,666.8 9,740.3 14 U.S. government securities 2,110.1 2,363.0 2,559.7 2,831.6 2,831.6 2,961.4 3,012.8 3,087.5 3,219.4 3,285.8 3,339.6 15 State and local obligations 679.1 728.4 790.8 821.2 821.2 822.2 827.2 837.9 841.3 842.2 847.6 16 Corporate and foreign bonds 606.6 674.3 765.6 831.6 831.6 846.7 865.5 874.0 897.1 915.5 936.8 17 Residential mortgages 1,288.5 1,399.0 1,560.2 1,670.4 1,670.4 1,781.4 1,793.5 1,802.8 1.795.0 1,776.3 1,778.0 18 Other mortgages and loans 2,339.8 2,528.7 2,724.9 2,923.8 2,923.8 2,921.0 2,954.5 2,965.9 2.979.1 2,954.0 2,933.0 19 LESS: Federal Home Loan Bank advances 108.6 133.1 152.8 141.8 141.8 132.9 126.3 117.9 117.1 107.0 94.7 20 Total credit market claims held by private financial institutions 6,018.0 6,564.5 7,128.6 7,662.7 7,662.7 7,852.1 7,913.4 7,987.2 8,127.7 8,173.1 8,199.4 By holding institution 21 Commercial banks 2,187.6 2.323.0 2,479.3 2.656.6 2.656.6 2,679.4 2,721.2 2,750.9 2,775.3 2.785.4 2,799.3 22 Savings institutions 1,297.9 1,445.5 1.567.7 1.480.7 1.480.7 1,461.3 1,409.5 1,371.2 1,330.3 1,289.2 1,253.0 23 Insurance and pension funds 1,525.4 1.705.1 1.903.8 2,081.6 2,081.6 2,150.3 2,194.4 2,227.6 2,264.1 2,308.1 2,335.6 24 Other finance 1,007.1 1,091.0 1.177.9 1.443.8 1.443.8 1,561.1 1,588.4 1,637.5 1,758.0 1.790.5 1,811.6 By source of funds 25 Private domestic deposits and repurchase agreements 3,199.0 3,354.2 3,599.1 3,824.3 3,824.3 3,848.4 3,837.2 3,844.6 3.884.6 3.933.6 3,895.0 26 Credit market debt 719.5 858.2 986.1 1,073.0 1,073.0 1.070.8 1,075.4 1,080.9 1.109.3 1,087.9 1,082.2 27 Other sources 2,099.5 2,352.1 2,543.5 2,765.5 2,765.5 2.932.9 3,000.8 3.061.8 3.133.7 3.151.7 3,222.2 28 Foreign funds 18.6 62.3 71.5 61.6 61.6 61.7 63.1 86.2 85.6 85.2 54.4 29 U.S. Treasury balances 27.5 21.6 29.0 25.6 25.6 16.7 32.1 36.6 30.9 26.3 36.0 30 Insurance and pension reserves 1,398.5 1,527.8 1,692.5 1,826.0 1,826.0 1,859.8 1,903.6 1,921.1 1,950.7 1,968.6 2,003.2 31 Other, net 655.0 740.3 750.5 852.3 852.3 994.7 1,002.1 1.017.9 1.066.4 1,071.5 1,128.6 Private domestic nonfinancial investors 32 Credit market claims 1,617.0 1,854.1 2,106.0 2,347.1 2,347.1 2,418.6 2,489.2 2,543.8 2,596.5 2,581.6 2,623.0 33 U.S. government securities 848.7 936.7 1,072.2 1,206.4 1,206.4 1,254.9 1,280.1 1,322.8 1,360.8 1,370.1 1,395.4 34 State and local obligations 212.6 274.4 340.9 369.3 369.3 362.0 367.3 371.1 368.4 361.1 366.5 35 Corporate and foreign bonds 90.5 114.0 100.4 130.5 130.5 153.4 169.2 166.8 180.6 180.3 195.1 36 Open market paper 145.1 178.5 218.0 228.7 228.7 233.9 249.6 251.0 247.0 235.3 227.5 37 Other loans and mortgages 320.1 350.4 374.4 412.1 412.1 414.4 423.0 432.1 439.7 434.8 438.5 38 Deposits and currency 3,410.1 3,583.9 3,832.3 4.073.6 4.073.6 4,094.7 4,097.4 4,108.5 4,163.6 4,209.8 4,184.2 39 Currency 186.3 205.4 220.1 231.8 231.8 234.4 242.7 247.2 254.4 262.0 265.9 40 Checkable deposits 516.6 515.4 527.2 528.7 528.7 504.3 510.1 499.7 529.2 512.2 520.8 41 Small time and savings accounts 1,948.3 2,017.1 2,156.2 2.256.7 2.256.7 2,285.6 2,286.6 2,295.8 2,313.2 2,343.0 2,342.7 42 Money market fund shares 268.9 297.8 318.0 403.3 403.3 436.7 426.3 454.5 465.0 513.3 493.2 43 Large time deposits 336.7 373.9 414.7 437.8 437.8 433.4 421.6 408.1 393.8 393.2 367.8 44 Security repurchase agreements 128.5 150.1 182.9 197.9 197.9 188.4 192.7 186.6 183.4 171.9 170.4 45 Deposits in foreign countries 24.8 24.3 13.1 17.6 17.6 11.9 17.5 16.8 24.6 14.3 23.4 46 Total of credit market instruments, deposits, and currency 5,027.2 5,438.0 5,938.2 6,420.7 6,420.7 6,513.3 6,586.6 6,652.3 6,760.1 6,791.4 6,807.3 MEMO 47 Public holdings as percent of total 22.6 23.4 23.5 23.6 23.6 23.4 23.8 24.2 24.4 24.7 25.1 48 Private financial intermediation (percent) 103.7 98.3 96.9 93.8 93.8 90.5 90.3 89.1 86.2 84.8 83.8 49 Total foreign funds 501.3 597.8 700.1 762.3 762.3 768.7 785.6 826.4 846.0 852.4 836.8 Corporate equities not included above 50 Total market value 3,360.6 3,325.0 3,619.8 4,378.9 4,378.9 4,166.6 4.333.1 3,765.3 3.982.7 4,562.4 4,5%.2 51 Mutual fund shares 413.5 460.1 478.3 555.1 555.1 550.3 587.9 547.3 579.9 643.0 681.3 52 Other equities 2,947.1 2,864.9 3.141.6 3,823.8 3,823.8 3,616.3 3.745.2 3,218.0 3.402.8 3,919.3 3,914.9 53 Holdings by financial institutions 974.6 1,039.5 1,176.1 1,492.3 1,492.3 1,434.8 1,542.1 1,301.6 1,417.4 1,663.8 1,677.1 54 Other holdings 2,385.9 2,285.5 2.443.7 2,886.6 2,886.6 2,731.8 2,791.0 2,463.6 2,565.3 2,898.6 2,919.1 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 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 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 lines 11 and 12. Also line 20 less line 26 plus line 32. 46. Sum of lines 32 and 38, or line 13 less line 27 plus lines 39 and 45. Also sum of lines 27 and 46 less lines 39 and 45. 47. Line 2 divided by lines 1 plus 12. 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 amounis affiliates, less claims on foreign affiliates and deposits by banking in foreign banks. outstanding can 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
A44 Domestic Nonfinancial Statistics • January 1992 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures Monthly data seasonally adjusted, except as noted 1991 MMeeaassuurree 11998888 11998899 11999900 Feb. Mar. Apr. May June July Aug.r Sept.r Oct. 1 Industrial production1 (1987=100) 105.4 108.1 109.2 105.7 105.0 105.5 106.4 107.3 108.1r 108.0 108.2 108.2 Market groupings (1987=100) 2 Products, total 105.3 108.6 110.1 106.9 106.5 106.9 107.7 108.6 108.7r 108.5 108.9 108.9 3 Final, total 105.6 109.1 110.9 108.3 108.1 108.7 109.3 110.1 110.2r 109.8 110.5 110.6 4 Consumer goods 104.0 106.7 107.3 104.7 104.7 105.5 106.6 108.0 108.3 108.4 109.2 109.5 5 Equipment 107.6 112.3 115.5 112.9 112.5 112.8 112.7 112.8 112.8r 111.7 112.1 111.9 6 Intermediate 104.4 106.8 107.7 102.6 101.3 101.2 102.7 104.0 104.0 104.2 103.9 103.6 7 Materials 105.6 107.4 107.8 103.9 102.6 103.4 104.5 105.4 107.0r 107.2 107.2 107.1 Industry groupings (1987=100) 8 Manufacturing 105.8 108.9 109.9 106.1 105.2 105.9 106.6 107.5 108.3 108.4 108.9 108.9 9 Capacity utilization, manufacturing (percent) 83.9 83.9 82.3 78.0 77.2 77.5 77.8 78.3 78.7 78.6 78.8 78.6 10 Construction contracts (1982=100)' 166.7 172.9 155.lr 133.0 128.0 145.0 138.0 133.0 144.0 150.0 143.0 157.0 11 Nonagricultural employment, total4 128.0 131.5 133.8 132.4 132.1 131.9 132.0 132.0 132.0 132.1 132.2 132.2 12 Goods-producing, total 103.4 104.0 102.7 98.7 98.1 97.7 98.0 97.7 97.8 97.9 97.7 97.5 13 Manufacturing, total 98.3 98.7 96.8 94.1 93.7 93.4 93.6 93.4 93.5 93.7 93.5 93.4 14 Manufacturing, production worker 93.5 93.8 91.5 88.3 87.9 87.7 87.9 87.8 88.0 88.3 88.1 88.1 15 Service-producing 138.3 142.9 146.8 146.4 146.3 146.1 146.3 146.4 146.3 146.5 146.6 146.7 16 Personal income, total 253.2 272.7 289.0 294.5 295.5 295.9 297.8 299.3 298.8 300.1 301.5 n.a. 17 Wages and salary disbursements 244.6 258.9 272.2 275.9 276.2 276.7 279.0 281.7 280.8 282.1 283.3 n.a. 18 Manufacturing 196.5 203.1 205.0 200.9 200.2 201.3 202.9 204.7 205.2r 206.8 206.4 n.a. 19 Disposable personal income 252.2 270.1 286.1 291.4 292.6 292.9 295.1 296.8 296.4r 297.8 299.2 n.a. 20 Retail sales6 228.2 241.7 250.8 251.6 252.3 251.4 254.3 254.2 255.1 253.4 254.9 254.6 Prices7 21 Consumer (1982-84=100) 118.3 124.0 130.7 134.8 135.0 135.2 135.6 136.0 136.2 136.6 137.2 137.4 22 Producer finished goods (1982=100) 108.0 113.6 119.2 121.4 120.9 121.1 121.8 121.9 121.6 121.7 121.3 122.3 1. A major revision of the industrial production index and the capacity 6. Based on U.S. Bureau of the Census data published in Survey of Current utilization rates was released in April 1990. See "Industrial Production: 1989 Business. Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April 7. Based on data not seasonally adjusted, as published in Monthly Labor 1990), pp. 187-204. Review. Seasonally adjusted data for changes in the price indexes can be obtained 2. Ratio of index of production to index of capacity. Based on data from the from the Bureau of Labor Statistics, U.S. Department of Labor. Federal Reserve, DRI McGraw-Hill, U.S. Department of Commerce, and other sources. NOTE. Basic data (not indexes) for series mentioned in notes 4, 5,and 6, and 3. Index of dollar value of total construction contracts, including residential, indexes for series mentioned in notes 3 and 7 can also be found in the Survey of nonresidential, and heavy engineering, from McGraw-Hill Information Systems Current Business. Co., F.W. Dodge Division. Figures for industrial production for the latest month are preliminary, and many 4. Based on data in Employment and Earnings (U.S. Department of Labor). figures for the three months preceding the latest month have been revised. See Series covers employees only, excluding personnel in the armed forces. "Recent Developments in Industrial Capacity and Utilization," Federal Reserve 5. Based on data in Survey of Current Business (U.S. Department of Com- Bulletin, vol. 76 (June 1990), pp. 411-35. merce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Selected Measures A45 2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data seasonally adjusted; exceptions noted 1991 CCaatteeggoorryy 11998888 11998899 11999900 Mar. Apr. May June July Aug. Sept. Oct. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 186,837 188,601 190,216 191,384 191,525 191,664 191,805 191,955 192,095 192,240 192,386 2 Labor force (including Armed Forces)1 123,893 126,077 126,954 127,467 127,817 127,374 127,766 127,330 127,026 127,725 127,646 3 Civilian labor force 121,669 123,869 124,787 125,326 125,672 112255,,223322 125,629 125,214 112244,,990044 112255,,660077 112255,,554499 Employment 4 Nonagricultural industries 111,800 114,142 114,728 113,656 114,243 113,319 113,576 113,474 113,150 113,859 113,772 5 Agriculture 3,169 3,199 3,186 3,098 3,156 33,,227722 3,308 3,239 33,,226666 33,,330066 33,,119955 Unemployment 6 Number 6,701 6,528 6,874 8,572 8,274 8,640 8,745 8,501 8,488 8,442 8,582 7 Rate (percent of civilian labor force) 5.5 5.3 5.5 6.8 6.6 6.9 7.0 6.8 6.8 6.7 6.8 8 Not in labor force 62,944 62,524 63,262 63,917 63,708 64,290 64,039 64,625 65,069 64,515 64,740 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 105,536 108,413 110,330 108,902 108,736 108,887 108,885 108,859 108,971r 109,019r 109,018 10 Manufacturing 19,350 19,426 19,064 18,443 18,396 18,426 18,378 18,402 18,442r 18,41 lr 18,379 11 Mining 713 700 735 714 710 706 704 701 693 684 680 12 Contract construction 5,110 5,200 5,205 4,720 4,688 4,715 4,710 4,695 4,691 4,697r 4,668 13 Transportation and public utilities 5,527 5,648 5,838 5,824 5,814 5,819 5,809 5,809 5,820* 5,825* 5,831 14 Trade 25,132 25,851 26,151 25,483 25,410 25,424 25,413 25,411 25,393r 25,386* 25,333 15 Finance 6,649 6,724 6,833 6,735 6,718 6,712 6,703 6,688 6,687r 6,691* 6,695 16 Service 25,669 27,096 28,209 28,576 28,576 28,645 28,712 28,733 28,83lr 28,918* 29,019 17 Government 17,386 17,769 18,295 18,407 18,424 18,440 18,456 18,420 18,414r 18,407* 18,413 1. Persons sixteen years of age and older. Monthly figures are based on sample pay for, the pay period that includes the twelfth day of the month, and exclude data collected during the calendar week that contains the twelfth day; annual data proprietors, self-employed persons, household and unpaid family workers, and are averages of monthly figures. By definition, seasonality does not exist in members of the armed forces. Data are adjusted to the March 1984 benchmark, population figures. and only seasonally adjusted data are available at this time. 2. Includes self-employed, unpaid family, and domestic service workers. SOURCE. Based on data from Employment and Earnings (U.S. Department of 3. Includes all full- and part-time employees who worked during, or received Labor). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A46 Domestic Nonfinancial Statistics • January 1992 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1990 1991 1990 1991 1990 Series Q4 Q1 Q2 Q3r Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3r Output (1987=100) Capacity (percent of 1987 output) Capacity utilization rate (percent) 1 Total industry 108.5 105.8 106.4 108.1 132.8 133.6 134.5 135.3 81.7 79.2 79.1 79.9 2 Manufacturing 109.0 106.1 106.7 108.5 135.0 136.0 136.9 137.9 80.8 78.0 77.9 78.7 4 3 P A r d im va a n r c y e d p ro p c ro e c ss e i s n s g in g 1 1 0 1 4 1 . . 7 0 1 1 0 0 0 8 . . 6 6 1 1 0 0 0 9 . .4 8 1 11 0 0 4 . .0 6 1 1 2 3 6 9 . . 1 1 1 1 2 4 6 0 . .2 8 1 1 2 4 7 1 . . 5 3 1 1 2 4 8 2 . . 1 4 7 8 9 3 . . 8 0 7 7 9 7 . . 4 5 7 77 9 . . 4 1 7 8 7 1 . .2 7 5 Durable goods 110.0 106.1 106.7 108.2 139.0 139.9 140.9 141.8 79.1 75.8 75.7 76.3 6 Lumber and products 95.7 92.3 94.0 94.9 124.6 125.0 125.2 125.4 76.8 73.9 75.1 75.6 7 Primary metals 107.3 97.9 95.9 102.3 127.9 128.2 128.6 129.0 83.9 76.4 74.6 79.3 8 Iron and steel 110.0 96.3 92.8 100.4 132.7 133.0 133.5 134.0 82.9 72.4 69.5 74.9 9 Nonferrous 103.4 100.2 100.3 104.9 121.1 121.3 121.5 121.7 85.3 82.6 82.6 86.2 10 Nonelectrical machinery 126.4 124.4 123.5 123.6 156.3 157.9 159.5 161.2 80.8 78.8 77.4 76.7 11 Electrical machinery 109.9 108.1 110.6 111.6 141.4 142.7 144.0 145.3 77.8 75.8 76.8 76.8 12 Motor vehicles and parts 89.4 80.8 89.5 95.9 132.9 133.4 134.2 134.9 67.2 60.5 66.7 71.1 13 Aerospace and miscellaneous transportation equipment 113.3 109.9 106.4 105.2 136.1 137.0 137.9 138.7 83.3 77.2 75.8 14 Nondurable goods 107.8 106.1 106.7 109.0 129.9 130.9 131.9 132.9 83.0 81.0 80.9 82.0 15 Textile mill products 98.2 94.6 99.4 104.1 117.0 117.3 117.7 118.0 84.0 80.6 84.5 88.2 16 Paper and products 105.8 102.6 102.7 107.6 115.7 116.4 117.1 117.9 91.4 88.2 87.7 91.3 17 Chemicals and products 110.2 109.1 109.3 112.0 137.1 138.4 139.7 141.0 80.4 78.8 78.2 79.4 18 Plastics materials 118.1 113.2 115.6 125.0 132.9 135.7 139.2 88.9 83.4 83.0 19 Petroleum products 107.4 107.3 107.6 108.2 121.4 121.4 121.4 121.4' 88.5 88.4 88.6 89.1 ' 20 Mining 103.1 102.0 101.1 101.6 114.0 113.8 114.3 114.6 90.4 89.6 88.4 88.7 21 Utilities 108.3 106.2 109.6 109.9 127.6 128.1 128.4 128.8 84.8 82.9 85.3 85.3 22 Electric 111.2 109.3 114.4 115.3 123.2 123.8 124.3 124.7 90.2 88.3 92.1 92.4 Previous cycle Recent cycle 1991 High Low High Oct. Apr. May June Julyr Aug.r Sept.r Oct.P Capacity utilization rate (percent) 1 Total industry 89.2 72.6 87.3 71.8 83.0 78.4 78.6 79.1 79.6 80.0 79.8 79.8 79.6 2 Manufacturing 88.9 70.8 87.3 70.0 82.2 77.2 77.5 77.8 78.3 78.7 78.6 78.8 78.6 3 Primary processing 92.2 68.9 89.7 66.8 84.3 77.9 78.2 79.0 79.9 81.1 81.2 81.2 81.1 4 Advanced processing 87.5 72.0 86.3 71.4 81.3 76.8 77.3 77.3 77.6 77.8 77.5 77.8 77.5 5 Durable goods 88.8 68.5 86.9 65.0 81.2 74.9 75.4 75.7 76.0 76.4 76.1 76.4 76.0 6 Lumber and products 90.1 62.2 87.6 60.9 78.9 72.9 74.1 73.9 77.2 75.6 75.7 75.6 74.7 7 Primary metals 100.6 66.2 102.4 46.8 85.0 73.8 73.6 75.3 74.9 78.5 79.9 79.5 79.2 8 Iron and steel 105.8 66.6 110.4 38.3 83.2 69.1 68.7 70.4 69.5 74.3 75.3 75.2 74.9 9 Nonferrous 92.9 61.3 90.5 62.2 87.7 81.1 81.1 83.1 83.5 85.1 87.1 86.4 85.9 10 Nonelectrical machinery 96.4 74.5 92.1 64.9 82.2 77.7 77.7 77.4 77.1 77.2 76.5 76.4 76.0 11 Electrical machinery 87.8 63.8 89.4 71.1 78.6 75.9 76.4 76.8 77.2 76.6 77.0 76.8 75.9 12 Motor vehicles and parts 93.4 51.1 93.0 44.5 78.1 59.7 64.3 66.9 68.9 71.8 67.9 73.6 74.3 13 Aerospace and miscellaneous transportation equipment. 77.0 66.6 81.1 66.9 84.0 79.3 78.0 76.7 76.8 76.1 76.1 75.3 74.9 14 Nondurable goods 87.9 71.8 87.0 76.9 83.6 80.3 80.5 80.7 81.4 82.0 82.0 82.1 82.0 15 Textile mill products 92.0 60.4 91.7 73.8 86.6 81.3 82.7 84.3 86.4 88.4 88.7 87.5 87.5 16 Paper and products 96.9 69.0 94.2 82.0 92.5 86.8 86.7 86.5 89.7 91.9 90.4 91.6 91.3 17 Chemicals and products 87.9 69.9 85.1 70.1 81.0 77.9 78.3 78.2 78.2 79.3 79.5 79.4 79.6 18 102.0 50.6 90.9 63.4 90.0 79.0 80.5 84.5 84.1 89.6 19 Petroleum products 96.7 81.1 89.5 68.2 89.5 89.4 87.1 88.6 90.2 89.2 88.4 89.7 88.8 20 Mining 94.4 88.4 96.6 80.6 89.9 89.0 88.3 87.6 89.2 89.6 88.6 87.9 87.7 21 Utilities 95.6 82.5 88.3 76.2 85.6 83.0 82.6 86.7 86.7 86.2 85.5 84.2 84.1 22 Electric 99.0 82.7 88.3 78.7 91.2 88.6 88.5 93.7 94.1 93.6 92.7 91.0 91.0 1. Data in this table also appear in the Board's G.17 (419) monthly statistical 2. Monthly high, 1973; monthly low, 1975. release. For ordering address, see inside front cover. For a detailed description of 3. Monthly highs, 1978 through 1980; monthly lows, 1982. the series, see "Recent Developments in Industrial Capacity and Utilization," Federal Reserve Bulletin, vol. 76 (June 1990), pp. 411-35. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Selected Measures A47 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 1987 1990 1991 pro- 1990 Group por- avg. tion Oct. Nov. Dec Feb. Mar. Apr. May June July Aug. Sept. Oct.p Index (1987 = 100) MAJOR MARKETS 1 Total index 100.0 109.2 109.9 108.3 107.2 106.6 105.7 105.0 105.5 106.4 107.3 108.1 108.0 108.2 108.2 2 Products 60.8 110.1 111.0 109.3 108.4 107.8 106.9 106.5 106.9 107.7 108.6 108.7 108.5 108.9 108.9 4 3 5 6 7 8 Fin C a o l D n p s u A r u r o a m u d A b t u e o l u e r A c m t t o g c u s o s o o t t o n o i a v s d s n , e u s d c , m p o t t r r e o n o u r t s d c a u g u k l m o c s o t e s d r s 2 4 2 5 6 6 1 . . . . . . 5 0 0 6 9 5 1 1 1 1 9 9 0 0 1 0 7 2 7 6 0 2 . . . . . . 4 2 3 2 9 3 1 1 1 1 1 1 0 0 0 0 1 0 7 7 4 8 2 6 . . . . . . 1 5 6 6 3 9 1 1 8 9 8 9 1 0 4 0 3 9 0 6 . . . . . . 2 7 5 4 2 5 1 1 7 8 7 9 0 0 7 6 4 6 9 5 . . . . . . 2 7 6 0 2 7 1 1 8 9 7 9 0 0 3 0 9 7 9 5 . . . . . . 2 6 6 6 1 6 1 1 7 8 7 9 0 0 8 8 4 5 4 8 . . . . . . 1 6 7 2 7 3 1 1 7 8 7 9 0 0 6 6 8 5 8 4 . . . . . . 3 7 9 9 1 7 1 1 7 9 8 9 0 0 4 8 5 9 8 5 . . . . . . 2 3 0 3 7 5 1 1 1 8 8 9 0 0 0 7 9 1 1 9 6 . . . . . . 4 2 9 1 3 6 1 1 1 1 9 8 0 1 0 0 2 3 0 0 4 8 . . . . . . 5 8 4 1 2 0 1 1 1 1 9 9 1 0 0 0 8 2 0 2 8 5 . . . . . . 1 8 2 3 3 5 1 1 1 9 8 9 0 0 0 0 3 8 8 9 4 . . . . . . 2 0 6 4 8 0 1 1 1 1 1 9 0 0 0 0 1 4 6 3 9 7 0 . . . . . . 5 2 0 2 5 6 1 1 1 1 1 9 0 0 0 1 0 2 5 7 9 0 7 . . . . . . 6 1 5 5 6 7 9 Trucks, consumer .6 106.1 112.2 90.2 70.2 73.6 68.1 77.4 96.3 101.6 107.1 106.9 102.2 117.1 126.1 10 Auto parts and allied goods.. 1.0 109.6 106.4 107.3 104.8 107.1 108.3 107.3 108.0 109.5 112.2 108.6 111.3 111.0 111.0 11 Other 3.1 109.4 106.8 104.1 103.4 103.2 100.7 101.4 103.4 104.1 107.3 108.1 108.3 108.7 108.0 12 Appliances, AJC, and TV.... .8 102.0 94.6 90.8 89.9 92.8 94.5 96.2 97.3 96.8 104.8 100.6 99.6 104.1 100.8 13 Carpeting and furniture .9 104.9 103.8 99.2 100.9 100.3 92.0 93.9 97.0 96.9 99.2 103.1 103.9 102.1 102.2 14 Miscellaneous home goods .. 1.4 116.4 115.5 114.6 112.5 110.8 109.8 109.2 110.8 112.8 113.8 115.5 115.9 115.4 115.7 15 Nondurable consumer goods 20.4 107.6 109.1 108.5 108.4 107.8 107.3 107.1 107.2 108.1 109.0 109.0 109.6 109.7 110.0 16 Foods and tobacco 9.1 105.9 106.7 107.8 107.5 106.3 105.9 105.4 105.3 106.2 106.9 106.9 107.4 107.6 107.8 17 Clothing 2.6 95.7 94.2 91.7 92.1 90.6 90.8 90.4 90.6 92.0 93.9 94.3 95.2 95.1 95.5 18 Chemical products 3.5 113.3 115.9 113.5 113.5 114.7 114.8 114.2 115.0 113.9 114.3 115.4 117.0 116.7 117.7 19 Paper products 2.5 119.7 123.4 122.8 122.7 122.1 121.0 122.2 122.7 121.8 123.3 122.1 122.6 124.4 125.2 20 Energy 2.7 105.9 108.8 106.4 106.6 106.5 105.2 105.5 104.4 109.0 110.0 109.4 108.9 107.5 107.1 21 Fuels .7 102.9 104.0 101.1 98.1 99.8 103.4 104.3 101.4 103.6 104.9 105.2 104.0 105.7 105.0 22 Residential utilities 2.0 107.0 110.6 108.4 109.7 109.0 105.9 105.9 105.5 111.0 111.9 110.9 110.7 108.1 107.8 23 Equipment 20.0 115.5 117.0 115.1 113.6 113.6 112.9 112.5 112.8 112.7 112.8 112.8 111.7 112.1 111.9 24 Business equipment 13.9 123.1 125.4 122.9 121.2 121.6 120.6 120.3 121.3 121.7 121.9 122.5 121.3 122.6 122.6 25 Information processing and related . 5.6 127.2 130.1 128.8 127.5 130.1 131.6 131.2 131.5 131.8 130.9 131.1 130.4 130.8 130.7 26 Office and computing 1.9 149.8 155.3 149.8 148.9 155.0 157.3 155.1 155.6 155.6 154.0 156.0 153.1 153.4 153.1 27 Industrial 4.0 115.3 115.4 115.3 112.3 111.5 109.1 109.5 109.3 109.3 109.1 109.0 108.5 108.6 108.7 28 Transit 2.5 129.9 137.5 126.3 123.4 124.0 120.3 120.4 124.1 125.9 128.0 131.2 126.5 132.7 133.3 29 Autos and trucks 1.2 96.8 106.5 83.9 75.3 79.8 75.0 76.7 84.4 87.9 90.8 96.6 86.2 99.2 101.1 30 Other 1.9 118.5 117.0 117.6 118.5 115.0 112.5 110.8 112.7 113.0 114.8 114.0 114.8 114.6 114.0 31 Defense and space equipment 5.4 97.3 97.3 96.2 95.8 94.4 94.5 93.9 92.5 91.5 91.0 90.0 90.0 89.0 88.6 32 Oil and gas well drilling .6 109.0 107.1 109.7 107.3 106.4 108.2 107.7 105.1 101.3 103.0 97.8 86.7 80.1 79.0 33 Manufactured homes .2 90.8 89.0 87.3 83.4 83.1 77.3 79.3 83.1 86.6 90.8 86.5 90.3 86.2 89.0 34 Intermediate products, total 14.7 107.7 107.0 106.2 106.0 103.8 102.6 101.3 101.2 102.7 104.0 104.0 104.2 103.9 103.6 35 Construction supplies 6.0 105.2 103.1 101.8 101.0 97.7 96.4 94.0 94.9 95.8 97.4 96.9 96.5 96.7 96.5 36 Business supplies 8.7 109.4 109.7 109.2 109.4 108.1 106.8 106.4 105.6 107.5 108.5 109.0 109.6 108.9 108.6 37 Materials 39.2 107.8 108.3 106.8 105.3 104.8 103.9 102.6 103.4 104.5 105.4 107.0 107.2 107.2 107.1 38 Durable goods materials 19.4 111.8 112.5 110.4 107.5 106.8 105.5 103.3 104.9 106.2 106.7 108.2 109.1 109.2 108.8 39 Durable consumer parts 4.2 104.0 106.0 98.5 91.1 94.2 90.4 87.5 92.1 95.5 97.3 100.2 100.1 101.2 100.7 40 Equipment parts 7.3 118.1 118.6 117.4 116.9 115.9 116.2 114.8 114.6 114.8 113.6 113.5 114.4 114.1 113.7 41 Other 7.9 110.2 110.4 110.2 107.4 105.2 103.8 101.0 102.6 103.8 105.3 107.5 109.1 109.0 108.6 42 Basic metal materials 2.8 111.9 112.0 112.7 109.6 104.6 104.8 101.2 101.6 103.0 105.9 108.8 110.8 110.4 109.7 43 Nondurable goods materials 9.0 106.0 106.5 105.6 104.9 104.9 103.6 102.8 103.1 103.7 104.9 108.1 107.7 108.4 108.6 44 Textile materials 1.2 96.7 97.9 95.1 91.4 89.1 91.5 92.7 94.7 96.8 98.1 101.4 101.4 100.7 100.7 45 Pulp and paper materials 1.9 106.4 108.6 107.2 108.5 106.0 104.1 102.4 102.0 101.5 106.9 110.3 108.2 110.6 110.5 46 Chemical materials 3.8 106.8 105.6 105.8 105.7 106.7 104.1 102.7 102.9 103.9 103.9 107.7 107.8 107.8 108.7 47 Other 2.1 109.5 110.8 109.4 107.6 109.3 108.8 108.8 109.0 109.2 108.6 110.5 110.7 111.7 111.1 48 Energy materials 10.9 102.1 102.3 101.6 102.0 101.1 101.1 101.3 101.1 102.4 103.4 104.1 103.2 102.6 102.6 49 Primary energy 7.2 101.3 100.7 101.4 101.9 101.3 102.1 101.5 100.5 101.2 104.7 106.2 104.4 104.1 104.1 50 Converted fuel materials 3.7 103.5 105.3 102.0 102.1 100.9 99.2 100.8 102.4 104.7 101.0 100.1 100.8 99.7 99.8 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.3 109.5 110.0 109.0 108.1 107.4 106.6 105.7 106.1 106.9 107.8 108.4 108.5 108.4 108.3 52 Total excluding motor vehicles and parts.. 95.3 109.8 110.2 109.4 108.6 107.8 107.0 106.2 106.5 107.3 108.1 108.6 108.8 108.7 108.6 53 Total excluding office and computing machines 97.5 108.2 108.8 107.3 106.1 105.4 104.4 103.7 104.2 105.2 106.2 106.9 106.8 107.1 107.0 54 Consumer goods excluding autos and trucks 24.5 107.9 108.7 107.9 107.6 107.2 106.5 106.4 106.7 107.6 108.9 108.9 109.5 109.6 109.8 55 Consumer goods excluding energy 23.3 107.5 108.6 106.5 105.6 105.5 104.7 104.6 105.6 106.3 107.7 108.1 108.4 109.4 109.8 56 Business equipment excluding autos and trucks 12.7 125.6 127.2 126.8 125.6 125.7 125.0 124.5 124.9 125.0 125.0 125.0 124.7 124.9 124.7 57 Business equipment excluding office and computing equipment 12.0 118.7 120.6 118.6 116.7 116.2 114.6 114.6 115.7 116.3 116.7 117.0 116.1 117.6 117.6 58 Materials excluding energy 28.4 110.0 110.6 108.9 106.6 106.2 104.9 103.1 104.3 105.4 106.1 108.2 108.7 109.0 108.7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A48 Domestic Nonfinancial Statistics • January 1992 2.13—Continued 1987 1990 1991 Group S co IC d e p p r o o r - - a 1 v 9 g 9 . 0 tion Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Index (1987 = 100) MAJOR INDUSTRIES 100.0 109.2 109.9 108.3 107.2 106.6 105.7 105.0 105.5 106.4 107.3 108.1 108.0 108.2 2 Manufacturing 84.4 109.9 110.7 108.9 107.5 107.0 106.1 105.2 105.9 106.6 107.5 108.3 108.4 108.9 3 Primary processing .. 26.7 106.3 106.2 104.9 102.9 102.0 100.8 99.0 99.6 100.7 102.1 103.7 104.0 104.3 4 Advanced processing 57.7 111.6 112.8 110.8 109.5 109.3 108.5 108.0 108.9 109.3 109.9 110.5 110.4 111.1 Durable goods 47.3 111.6 112.5 109.9 107.5 107.2 106.1 105.0 106.0 106.7 107.3 108.1 107.9 108.6 Lumber and products ... 24 2.0 101.6 98.2 95.5 93.5 94.2 91.5 91.2 92.7 92.5 96.7 94.8 95.0 94.9 Furniture and fixtures ... 25 1.4 105.9 104.4 102.3 102.0 99.0 94.9 95.4 98.3 98.5 99.4 100.5 101.3 101.2 Clay, glass, and stone products 32 2.5 105.7 104.4 103.8 100.7 97.2 98.9 94.4 94.2 95.1 95.0 95.8 95.7 95.3 Primary metals 33 3.3 108.4 108.6 109.1 104.2 99.7 99.5 94.7 94.5 96.9 96.4 101.2 103.0 102.7 Iron and steel 331,2 1.9 109.9 110.3 112.6 107.3 99.0 98.0 92.0 91.6 94.0 92.9 99.5 100.9 100.9 Raw steel .1 109.6 112.8 109.5 100.6 104.7 97.9 89.8 91.0 88.9 94.0 102.6 102.4 100.9 Nonferrous 333-6,9 1.4 106.2 106.2 104.1 99.8 100.6 101.6 98.4 98.5 101.0 101.5 103.5 106.0 105.2 Fabricated metal products 5.4 105.9 106.4 104.3 101.9 101.7 99.1 97.8 98.0 99.1 99.8 100.9 101.3 101.5 Nonelectrical machinery. 8.6 126.5 128.1 126.3 124.7 125.5 124.5 123.1 123.5 123.6 123.4 123.9 123.3 123.5 Office and computing machines 357 2.5 149.8 155.3 149.8 148.9 155.0 157.3 155.1 155.6 155.6 154.0 156.0 153.0 153.4 Electrical machinery .... 36 8.6 111.4 110.8 110.4 108.7 107.6 108.2 108.6 109.7 110.6 111.5 111.0 111.8 111.9 Transportation equipment 9.8 105.5 109.2 100.1 96.6 97.6 95.5 95.0 97.2 98.2 99.7 101.3 98.9 102.2 Motor vehicles and parts 4.7 96.8 103.8 85.8 78.5 83.0 79.4 79.8 86.2 89.8 92.5 96.7 91.6 99.4 Autos and light trucks 2.3 96.6 107.1 83.7 74.9 80.1 75.3 76.6 84.0 88.2 91.2 97.3 89.1 101.7 Aerospace and miscellaneous transportation equipment.. 372-6,9 5.1 113.3 114.0 113.1 112.9 110.8 110.0 108.8 107.2 105.8 106.1 105.4 105.5 104.7 Instruments 38 3.3 116.8 118.1 118.1 117.3 119.0 119.3 118.4 118.6 118.2 117.3 116.5 116.9 118.0 Miscellaneous 39 1.2 120.0 121.5 122.5 119.1 116.1 114.6 115.3 117.5 118.7 119.8 121.6 123.2 122.0 23 Nondurable goods 37.2 107.8 108.4 107.7 107.4 106.8 106.0 105.4 105.9 106.5 107.6 108.6 109.0 109.3 24 Foods 8.8 107.6 108.8 109.6 109.1 108.3 107.6 107.4 107.6 107.8 108.6 108.3 108.7 109.2 25 Tobacco products 1.0 98.6 97.8 99.0 101.1 100.0 100.1 98.2 97.6 98.7 99.4 102.6 104.3 103.0 26 Textile mill products 1.8 100.8 101.2 97.4 96.1 94.0 94.3 95.4 97.2 99.2 101.7 104.2 104.7 103.4 27 Apparel products 2.4 98.8 97.2 95.5 94.9 92.9 93.1 92.5 93.2 95.2 96.2 97.8 98.7 98.5 28 Paper and products 3.6 105.3 106.8 105.1 105.4 104.2 102.2 101.3 101.3 101.3 105.3 108.1 106.5 108.2 29 Printing and publishing .. 6.4 111.9 112.9 112.4 112.8 112.1 110.9 110.4 110.7 110.6 111.2 111.9 112.3 112.5 30 Chemicals and products . 8.6 110.3 110.7 110.0 109.9 110.1 109.1 108.2 109.0 109.2 109.6 111.5 112.1 112.3 31 Petroleum products 1.3 108.2 108.6 107.8 105.6 104.7 108.8 108.5 105.7 107.5 109.6 108.3 107.3 108.9 32 Rubber and plastic products 3.0 110.2 110.6 109.6 106.9 108.8 106.1 104.4 106.6 109.2 110.5 110.1 112.0 112.4 33 Leather and products ... .3 100.0 95.3 89.9 92.6 89.6 90.8 91.5 90.0 89.5 90.9 91.0 88.0 86.5 34 Mining 7.9 102.6 102.6 103.3 103.4 101.7 102.9 101.5 100.9 100.2 102.1 102.7 101.5 100.7 35 Metal 10 .3 153.1 146.8 153.4 162.0 143.1 148.0 147.6 145.7 148.0 157.0 153.0 159.0 159.3 36 Coal 11,12 1.2 113.2 114.7 112.9 110.6 108.4 112.8 109.9 105.9 103.4 110.2 116.0 110.8 110.1 37 Oil and gas extraction.... 13 5.7 95.5 95.8 97.3 96.7 96.0 97.2 96.4 96.6 96.0 96.9 96.4 95.7 94.7 38 Stone and earth minerals . 14 .7 119.5 118.0 113.5 118.9 119.2 112.0 108.0 107.0 107.5 106.4 107.8 106.8 107.3 39 Utilities... 7.6 108.0 109.2 106.9 108.8 107.6 104.6 106.4 105.9 111.4 111.5 110.9 110.2 108.5 40 Electric. 491,3PT 6.0 110.8 112.1 109.6 111.8 110.4 107.8 109.8 109.8 116.4 117.1 116.6 115.6 113.6 41 Gas .... 492,3PT 1.6 97.3 98.1 97.0 97.6 97.5 92.8 93.6 91.6 92.8 90.7 89.7 90.2 89.6 SPECIAL AGGREGATES 42 Manufacturing excluding motor vehicles and parts 79.8 110.7 111.1 110.3 109.1 108.4 107.6 106.7 107.1 107.6 108.3 109.0 109.3 109.5 43 Manufacturing excluding office and computing machines 82.0 108.7 109.4 107.7 106.2 105.fr 104.5 103.7 104.4 105.1 106.1 106.9 107.0 107.6 Gross value (billions of 1982 dolla rs, annual rates) MAJOR MARKETS 44 Products, total 1734.8 1,911.4 1,939.6 1,882.8 1,859.4 1,860.4 1,848.4 1,845.4 1,853.3 1,875.7 1,890.5 1,895.3 1,884.2 1,902.2 45 Final 1350.9 1,497.7 1,523.7 1,470.8 1,450.8 1,459.6 1,452.8 1,455.6 1,464.6 1,478.1 1,490.5 1,496.1 1,483.6 1,503.0 46 Consumer goods 833.4 882.9 892.7 865.2 857.6 857.9 852.7 857.4 862.9 874.4 884.2 888.3 881.7 897.4 47 Equipment 517.5 614.8 631.0 605.6 593.2 601.7 600.1 598.2 601.7 603.7 606.2 607.8 602.0 605.6 48 Intermediate 384.0 413.7 415.9 412.0 408.7 400.8 395.6 389.8 388.7 397.6 400.1 399.2 400.5 399.2 1. Data in this table also appear in the Board's G.17 (419) weekly statistical Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April release. For ordering address see inside front cover. 1990), pp. 187-204. A major revision of the industrial production index and the capacity 2. Standard industrial classification. utilization rates was released in April 1990. See "Industrial Production: 1989 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Selected Measures A49 2.14 HOUSING AND CONSTRUCTION Monthly figures at seasonally adjusted annual rates, except as noted 1990 1991 IItteemm 11998888 11998899 11999900 Dec. Jan. Feb. Mar. Apr. May June Julyr Aug.r Sept. Private residential real estate activity (thousands of units, except as noted) NEW UNITS 1 Permits authorized 1,456 1,339 1,111 854 802 876 892 913 966 999 1,005 953 982 2 One-family 994 932 794 645 611 695 689 742 760 780 794 769 782 3 Two-or-more-family 462 407 317 209 191 181 203 171 206 219 211 184 200 4 Started 1,488 1,376 1,193 971 847 992 907 977 983 1,034 1,049 1,056 1,021 5 One-family 1,081 1,003 895 751 648 788 742 801 831 869 879 883 864 6 Two-or-more-family 407 373 298 220 199 204 165 176 152 165 170 173 157 7 Under construction at end of period1.. 919 850 711 744 717 709 680 674 665 655 652 651 636 8 One-family 570 535 449 478 461 457 442 443 443 446 451 456 456 9 Two-or-more-family 350 315 262 266 256 252 238 231 222 209 201 195 180 10 Completed 1,530 1,423 1,308 1,155 1,125 1,096 1,190 1,089 1,070 1,105 1,069 1,054 1,144 11 One-family 1,085 1,026 966 878 841 838 881 821 800 815 806 816 832 12 Two-or-more-family 445 396 342 277 284 258 309 268 270 290 263 238 312 13 Mobile homes shipped 218 198 188 167 168 157 157 175 174 173 175 178 172 Merchant builder activity in one-family units 14 Number sold 675 650 535 464 414 488 495 506 507 551188rr 550033 551122 444466 15 Number for sale at end of period ... 368 363 318 318 315 313 308 303 299 295 296 295 295 Price of units sold (thousands of dollars)2 16 Median 113.3 120.4 122.3 127.0 117.9 119.9 122.5 121.0 116.0 111199..00rr 112200..00 112200..88 112200..22 17 Average 139.0 148.3 149.0 153.4 148.6 147.8 156.4 150.8 145.4 145.9r 148.0 140.2 144.6 EXISTING UNITS (one-family) 18 Number sold 3,594 3,439 3,316 3,130 2,900 3,160 3,220 3,310 3,540 3,590 3,320 3,250 3,120 Price of units sold (thousands of dollars)2 19 Median 89.2 92.9 95.2 91.7 95.6 94.0 98.2 100.3 101.1 110022..00 110033..66 110022..22 9999..77 20 Average 112.5 118.0 118.3 114.1 123.0 119.7 125.2 128.9 130.6 130.5 132.2 131.0 127.7 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 432,222 443,720 446,433 421,346 406,502 410,072 401,883 407,050 399,030 398,189 400,615 402,138 406,505 77 337,440 345,416 337,776 311,349 303,932 300,495 293,262 299,044 291,048 290,871 289,634 293,227 295,917 ?3 198,101 196,551 182,856 165,014 161,793 155,622 152,447 151,836 154,567 158,282 157,776 162,934 167,658 74 Nonresidential, total 139,339 148,865 154,920 146,335 142,139 144,873 140,815 147,208 136,481 132,589 131,858 130,293 128,259 75 Industrial buildings 16,451 20,412 23,849 22,999 22,433 23,249 23,089 24,301 20,683 20,868 20,948 20,399 19,987 76 Commercial buildings 64,025 65,496 62,866 56,913 53,848 54,023 51,766 54,824 50,220 47,596 46,964 46,236 44,531 77 Other buildings 19,038 19,683 21,591 20,953 20,621 20,850 20,628 21,928 20,858 20,429 20,684 19,966 20,414 78 Public utilities and other 39,825 43,274 46,614 45,470 45,237 46,751 45,332 46,155 44,720 43,696 43,262 43,692 43,327 29 Public 94,783 98,303 108,655 109,997 102,570 109,577 108,621 108,007 107,982 107,318 110,981 108,911 110,588 30 Military 3,579 3,520 2,734 1,868 1,868 1,723 1,866 1,828 1,918 1,864 1,776 1,796 2,182 31 Highway 29,227 28,171 30,595 33,185 25,560 30,699 29,996 28,591 29,246 28,776 28,744 29,965 28,214 37 Conservation and development... 4,739 4,989 4,718 5,374 6,434 5,529 4,586 5,833 5,123 5,807 8,170 4,992 4,363 33 Other 57,238 61,623 70,608 69,570 68,708 71,626 72,173 71,755 71,695 70,871 72,291 72,158 75,829 1. Not at annual rates. SOURCE. Bureau of the Census estimates for all series except (1) mobile homes, 2. Not seasonally adjusted. which are private, domestic shipments as reported by the Manufactured Housing 3. Recent data on value of new construction may not be strictly comparable Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices with data for previous periods because of changes by the Bureau of the Census in of existing units, which are published by the National Association of Realtors. All its estimating techniques. For a description of these changes, see Construction back and current figures are available from the originating agency. Permit Reports (C-30-76-5), issued by the Bureau in July 1976. authorizations are those reported to the Census Bureau from 17,000 jurisdictions beginning in 1984. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A50 Domestic Nonfinancial Statistics • January 1992 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data, except as noted Change from 12 Change from 3 months earlier months earlier (annual rate) Change from 1 month earlier IIInnndddeeexxx llleeevvveeelll,,, IIIttteeemmm 1990 1991 1991 OOOcccttt... 11999900 11999911 111999999111 OOcctt.. OOcctt.. Dec. Jan. Feb. Mar. June July Aug. Sept. Oct. CONSUMER PRICES2 (1982-84=100) 1 All items 6.3 2.9 4.9 2.4 3.0 3.3 .2 .2 .2 .4 .1 137.4 2 Food 5.6 1.6 3.9 2.4 5.1 -3.2 .5 -.6 -.3 .1 -.1 135.8 3 Energy items 4 All items less food and energy 17.8 -8.6 18.0 -30.7 -1.2 1.6 -1.0 -.4 -.2 1.0 .2 101.8 5 Commodities 5.3 4.4 3.8 6.8 3.2 4.6 .4 .4 .4 .4 .1 143.9 6 Services 3.4 4.1 2.3 7.9 3.2 4.1 .2 .4 .5 .2 -.1 130.4 6.3 4.6 4.8 6.4 3.0 4.6 .4 .3 .3 .5 .3 151.8 PRODUCER PRICES (1982=100) 7 Finished goods 6.4 .0 5.1 -3.5 .7 .3 -.4 -.2 .2 .1 .7 122.3 8 Consumer foods 4.3 -1.3 1.3 1.0 -.6r -6.3r -,5r -,7r -.4 -.5 .4 123.0 9 Consumer energy 33.9 -11.1 21.1 -35.5 .0 5.3 -1.5 -1.3 1.8 .8 1.7 78.3 10 Other consumer goods 3.4 3.8 3.4 5.9 1.2r 2.4r -.3r .3r .3 .0 .6 135.2 11 Capital equipment 3.3 2.7 3.3 4.6 1.6r 1.0r .2r .1 .2 .4 127.9 Intermediate materials 12 Excluding foods and feeds 5.1 -3.3 4.2 -9.8 -.7r ,4r ,2r -.3 .4 .1 -.1 114.2 13 Excluding energy 1.4 -.7 2.3 -2.3 -1.0 -.3 .1 -.1 .0 .0 -.1 121.1 Crude materials 14 Foods 2.4 -7.2 -7.3 .0 -12.5 -8.1 .8 -1.7 -1.8 1.5 .1 102.5 15 Energy 52.7 -31.5 -18.8 -54.0 .5r .<y -2.7r 1.4r 1.3 -2.7 3.9 80.1 16 Other .1 -9.3 -18.1 -4.7 -13.3r -4.0r -S.O1 -,6r .5 -.9 -.5 125.0 1. Not seasonally adjusted. rental-equivalence measure of homeownership. 2. Figures for consumer prices are for all urban consumers and reflect a SOURCE. Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Selected Measures A51 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars, except as noted; quarterly data at seasonally adjusted annual rates 1988 1989 Q2 Q3 Q4 Ql GROSS NATIONAL PRODUCT 1 Total 4,873.7 5,200.8 5,465.1 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 3,622.7 3,693.4 3,724.9 3,742.8 3 Durable goods 457.5 474.6 480.3 478.4 482.3 468.5 455.3 4 Nondurable goods 1,060.0 1,130.0 1,193.7 1,179.0 1,205.0 1,216.0 1.212.7 5 Services 1,720.7 1.845.5 1,983.3 1.965.3 2,006.2 2,040.4 2.074.8 6 Gross private domestic investment 747.1 771.2 741.0 759.0 759.7 698.3 660.0 7 Fixed investment 720.8 742.9 746.1 745.6 750.7 729.2 694.1 8 Nonresidential 488.4 511.9 524.1 516.5 532.8 524.0 503.6 9 Structures 139.9 146.2 147.0 147.2 149.8 142.1 139.5 10 Producers' durable equipment 348.4 365.7 377.1 369.3 383.0 381.9 364.1 11 Residential structures 232.5 231.0 222.0 229.1 217.9 205.2 190.5 12 Change in business inventories 26.2 28.3 -5.0 13.4 9.0 -30.8 -34.2 13 Nonfarm 29.8 23.3 -7.4 13.0 6.8 -32.4 -37.1 14 Net exports of goods and services -74.1 -46.1 -31.2 -24.9 -41.3 -28.8 13.5 15 Exports 552.0 626.2 672.8 659.7 672.7 697.4 694.5 16 Imports 626.1 672.3 704.0 684.6 714.1 726.2 681.0 17 Government purchases of goods and services .. 962.5 1.025.6 1,098.1 1.086.4 1,102.8 1,132.9 1,141.5 18 Federal 380.3 400.0 424.0 421.9 425.8 437.6 443.8 19 State and local 582.3 625.6 674.1 664.6 677.0 695.3 697.7 By major type of product 20 Final sales, total 4.847.5 5,172.5 5.470.2 5,429.9 5,505.6 5,558.2 5,591.9 21 Goods 1,908.9 2,044.4 2.148.3 2.133.1 2,161.4 2,175.9 2,170.2 22 Durable 840.3 894.7 939.0 930.1 943.4 941.2 918.5 23 Nondurable 1.068.6 1,149.7 1,209.3 1,203.0 1,218.0 1,234.7 1,251.7 24 Services 2,488.6 2,671.2 2,864.5 2.834.2 2,889.6 2,943.0 3,004.0 25 Structures 450.0 456.9 457.4 462.5 454.6 439.3 417.7 26 Change in business inventories 26.2 28.3 -5.0 13.4 9.0 -30.8 -34.2 27 Durable goods 19.9 11.9 -11.1 .0 9.8 -32.5 -42.2 28 Nondurable goods 6.4 16.4 6.0 13.4 1.7 8.0 MEMO 29 Total GNP in 1982 dollars 4,016.9 4,117.7 4,157.3 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 4,411.3 4,452.4 4.459.7 4,456.4 31 Compensation of employees 2,905.1 3,079.0 3.244.2 3.232.5 3,276.9 3,286.9 3,299.3 32 Wages and salaries 2,431.1 2,573.2 2.705.3 2,696.3 2,734.2 2,738.9 2,742.8 33 Government and government enterprises .. 446.6 476.6 508.0 505.7 511.3 518.1 529.8 34 Other 1,984.5 2,096.6 2,197.2 2.190.6 2,222.9 2.220.8 2,213.0 35 Supplement to wages and salaries 474.0 505.8 538.9 536.1 542.7 548.0 556.5 36 Employer contributions for social insurance 248.5 263.9 280.8 279.7 282.7 284.8 290.3 37 Other labor income 225.5 241.9 258.1 256.4 260.0 263.2 266.2 38 Proprietors' income1 354.2 379.3 402.5 401.7 397.9 406.2 404.4 39 Business and professional 310.5 330.7 352.6 350.8 355.6 357.4 355.8 40 Farm1 43.7 48.6 49.9 51.0 42.4 48.8 48.5 41 Rental income of persons2 16.3 8.2 6.9 4.3 8.4 9.3 5.6 42 Corporate profits1 337.6 311.6 298.3 306.6 300.7 288.9 286.2 4 4 3 4 P In r v of e i n ts to b r e y f o v r a e l u t a a t x i 3 o n adjustment - 3 2 1 7 6 . . 0 7 - 3 2 0 1 7 . . 7 7 - 3 1 0 1 4 . . 4 7 29 - 9 . . 5 3 - 3 1 1 9 8 . . 8 5 - 3 1 0 3 4 . . 8 1 28 8 1. . 5 1 45 Capital consumption adjustment 47.8 25.5 4.9 7.7 2.0 -1.4 -3.5 46 Net interest 371.8 445.1 466.7 466.2 468.3 468.4 460.9 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 (U.S. Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A52 Domestic Nonfinancial Statistics • January 1992 2.17 PERSONAL INCOME AND SAVING Billions of current dollars, except as noted; quarterly data at seasonally adjusted annual rates 1990 1991 11998888 11998899 11999900 Q2 Q3 Q4 Ql Q2 PERSONAL INCOME AND SAVING 1 Total personal income 4,070.8 4,384.3 4,645.5 4,622.2 4,678.5 4,718.5 4,735.8 4,784.7 2 Wage and salary disbursements 2,431.1 2,573.2 2,705.3 2,696.3 2,734.2 2,738.9 2,742.8 2,774.0 3 4 Co M m a m n o u d fa it c y t - u p r r i o ng d ucing industries 6 5 9 2 6 4 . . 4 0 7 5 2 4 0 1 . . 6 8 7 5 2 4 9 6 . . 3 8 7 5 3 4 1 8 . . 1 1 7 5 3 5 5 1 . . 3 8 7 5 2 4 6 6 . . 0 1 7 5 1 3 3 6 . . 0 7 7 5 1 4 5 1 . . 9 3 5 Distributive industries 572.0 604.7 637.2 637.3 642.7 641.9 639.7 645.6 6 Service industries 716.2 771.4 830.8 822.2 844.9 853.0 860.3 877.7 7 Government and government enterprises 446.6 476.6 508.0 505.7 511.3 518.1 529.8 534.9 8 Other labor income 225.5 241.9 258.1 256.4 260.0 263.2 266.2 269.2 9 Proprietors' income1 354.2 379.3 402.5 401.7 397.9 406.2 404.4 417.0 10 Business and professional1 310.5 330.7 352.6 350.8 355.6 357.4 355.8 365.2 11 Farm1 43.7 48.6 49.9 51.0 42.4 48.8 48.5 51.8 12 Rental income of persons2 16.3 8.2 6.9 4.3 8.4 9.3 5.6 5.4 13 Dividends 102.2 114.4 123.8 122.9 124.9 126.7 126.7 125.5 14 Personal interest income 547.9 643.2 680.4 678.0 685.3 687.9 682.0 674.3 15 Transfer payments 587.7 636.9 694.8 686.7 696.4 715.1 745.4 758.8 16 Old-age survivors, disability, and health insurance benefits .. 300.5 325.3 350.7 347.6 351.1 356.8 372.1 376.9 17 LESS: Personal contributions for social insurance 194.1 212.8 226.2 224.1 228.6 228.9 237.3 239.4 18 EQUALS: Personal income 4,070.8 4,384.3 4,645.5 4,622.2 4,678.5 4,718.5 4,735.8 4,784.7 19 LESS: Personal tax and nontax payments 591.6 658.8 699.4 696.5 709.5 716.6 714.6 716.6 20 EQUALS: Disposable personal income 3,479.2 3,725.5 3,946.1 3,925.7 3,969.1 4,001.9 4,021.3 4,068.1 21 LESS: Personal outlays 3,333.6 3,553.7 3,766.0 3,730.6 3,802.6 3,834.4 3,852.5 3,898.0 22 EQUALS: Personal saving 145.6 171.8 180.1 195.1 166.5 167.5 168.7 170.2 MEMO Per capita (1982 dollars) 23 Gross national product 16,302.4 16,549.6 16,535.3 16,552.5 16,562.9 16,449.4 16,293.4 16,234.8 24 Personal consumption expenditures 10,578.3 10,678.0 10,665.8 10,671.4 10,711.5 10,588.7 10,523.7 10,565.3 25 Disposable personal income 11,368.0 11,531.0 11,509.0 11,564.0 11,511.0 11,376.0 11,307.0 11,343.0 26 Saving rate (percent) 4.2 4.6 4.6 5.0 4.2 4.2 4.2 4.2 GROSS SAVING 27 Gross saving 656.1 691.5 657.3 679.3 665.9 619.2 697.1 649.1 28 Gross private saving 751.3 779.3 787.9 806.7 772.2 777.8 793.9 795.1 29 Personal saving 145.6 171.8 180.1 195.1 166.5 167.5 168.7 170.2 30 Undistributed corporate profits1 91.4 53.0 32.2 40.5 26.5 25.2 33.6 29.3 31 Corporate inventory valuation adjustment -27.0 -21.7 -11.4 -.5 -19.8 -13.8 8.1 4.9 Capital consumption allowances 32 Corporate 322.1 346.4 363.0 359.7 365.5 370.3 375.6 378.0 33 Noncorporate 192.2 208.0 212.6 211.4 213.8 214.8 216.0 217.6 34 Government surplus, or deficit (-), national income and product accounts -95.3 -87.8 -130.6 -127.3 -106.4 -158.6 -96.8 -146.0 35 Federal -141.7 -134.3 -166.0 -166.0 -145.7 -184.3 -126.9 -184.6 36 State and local 46.5 46.4 35.4 38.6 39.3 25.7 30.0 38.6 37 Gross investment 627.8 674.4 655.6 676.1 661.0 619.6 705.3 664.6 38 Gross private domestic 747.1 771.2 741.0 759.0 759.7 698.3 660.0 654.0 39 Net foreign -119.2 -96.8 -85.5 -82.9 -98.7 -78.7 45.3 10.6 40 Statistical discrepancy -28.2 -17.0 -1.7 -3.2 -4.9 .4 8.2 15.4 1. With inventory valuation and capital consumption adjustments. SOURCE. Survey of Current Business (U.S. Department of Commerce). 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Summary Statistics A53 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data seasonally adjusted, except as noted1 1991 Item credits or debits Q2 Q3 Q4 Q1 Q2P 1 Balance on current account -126,236 -106,305 -92,123 -22,178 -23,881 -23,402 10,501 2,965 2 Not seasonally adjusted . -20,653 -29,112 -25,136 15,507 4,508 3 Merchandise trade balance -126,986 -115,917 -108,115 -24,090 -28,760 -27,728 -18,394 -15,624 4 Merchandise exports 320,337 361,451 389,550 97,088 96,638 100,580 100,900 104,108 5 Merchandise imports -447,323 -477,368 -497,665 -121,178 -125,398 -128,308 -119,294 -119,732 6 Military transactions, net -5,743 -6,203 -7,219 -1,558 -1,683 -2,243 -2,329 -1,675 7 Investment income, net 5,353 2,688 11,945 7 2,802 6,133 4,883 2,464 8 Other service transactions, net 16,082 28,618 33,595 8,156 8,086 9,716 9,402 9,640 9 Remittances, pensions, and other transfers . -4,437 -4,420 -4,843 -1,123 -1,302 -1,201 -1,316 -1,300 10 U.S. government grants (excluding military) -10,506 -11,071 -17,486 -3,570 -3,024 -8,079 18,255 9,460 11 Change in U.S. government assets other than official reserve assets, net (increase, -) 2,966 1,320 2,976 -800 4,759 1,422 -560 12 Change in U.S. official reserve assets (increase, -). -3,912 0 -25,293 0 -2,158 0 371 0 1,73 0 9 -1,092 0 -353 0 1,0140 13 Gold 14 Special drawing rights (SDRs) 127 -535 -192 -216 363 -93 31 -190 15 Reserve position in International Monetary Fund. 1,025 471 731 493 8 -4 -341 72 16 Foreign currencies -5,064 -25,229 -2,697 94 1,368 -995 -43 1,132 17 Change in U.S. private assets abroad (increase, -). -85,112 -104,637 -58,524 -33,033 -28,114 -38,370 -1,992 -27,125 18 Bank-reported claims -56,322 -51,255 5,333 -17,255 -9,984 -24,513 20,598 -11,248 19 Nonbank-reported claims -3,064 2,581 -1,944 -1,760 676 -2,509 -1,308 20 U.S. purchases of foreign securities, net -7,846 -22,575 -28,476 -11,160 -1,014 -7,546 -9,430 -I 3,235* 21 U.S. direct investments abroad, net -17,880 -33,388 -33,437 -2,858 -17,792 -3,802 -11,852 -2,642 22 Change in foreign official assets in United States (increase, +) 39,657 8,624 32,425 5,805 13,341 20,301 6,631 -3,650 23 U.S. Treasury securities 41,741 149 28,643 2,461 11,849 20,119 2,381 -1,888 24 Other U.S. government obligations 1,309 1,383 667 346 134 708 -29 -219 25 Other U.S. government liabilities4 -568 281 1,703 1,141 -248 1,102 1,012 196 26 Other U.S. liabilities reported by U.S. banks3 -319 4,976 2,998 2,131 1,871 -707 2,501 -1,881 27 Other foreign official assets -2,506 1,835 -1,586 -274 -265 -921 766 142 28 Change in foreign private assets in United States (increase, +).. 181,877 207,925 53,879 25,452 35,754 18,732 -7,360 5,806 29 U.S. bank-reported liabilities3 70,235 63,382 9,975 8,980 26,968 17,261 -18,795 -26,687 3 3 0 1 U Fo .S re . i n gn o n p b r a iv n a k t - e r e p p u o r r c t h ed a s l e i s a b o i f l it U ie . s S . Treasury securities, net 2 5 0 , , 6 2 2 3 6 9 2 5 9 , , 4 6 5 1 4 8 3 1 , , 7 1 7 3 9 1 4,2 6 8 9 7 9 4,26 2 0 4 - - 1 2 , , 8 0 4 2 0 9 -1 3 , , 6 4 1 0 6 9 i3,905 32 Foreign purchases of other U.S. securities, net 26,353 38,920 1,781 2,140 -2,558 802 5,306 15,312 33 Foreign direct investments in United States, net 59,424 70,551 37,213 9,346 7,060 4,538 4,336 3,276 0 0 0 0 0 0 0 0 34 Allocation of special drawing rights 35 Discrepancy -9,240 18,366 63,526 24,383 1,475 19,072 -8,849 21,550 36 Due to seasonal adjustments 105 -6,473 2,007 3,995 193 37 Statistical discrepancy in recorded data before seasonal adjustment -9,240 24,278 7,948 17,066 -12,844 21,357 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) -3,912 -25,293 -2,158 371 1,739 -1,092 -353 1,014 39 Foreign official assets in United States excluding line 25 (increase, +) 40,225 8,343 30,722 4,664 13,589 19,199 5,619 -3,846 40 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) -2,996 10,738 2,163 575 -2,680 1. Seasonal factors not calculated for lines 6, 10, 12-16, 18-20, 22-34, and cial banks, as well as some brokers and dealers. 38-40. 4. Associated primarily with military sales contracts and other transactions 2. Data are on an international accounts (IA) basis. The data differ from the arranged with or through foreign official agencies. Census basis data, shown in table 3.11, for reasons of coverage and timing. 5. Consists of investments in U.S. corporate stocks and in debt securities of Military exports are excluded from merchandise trade data and are included in private corporations and state and local governments. line 6. SOURCE. Survey of Current Business (U.S. Department of Commerce). 3. Reporting banks include all kinds of depository institutions besides commer- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A54 International Statistics • January 1992 3.11 U.S. FOREIGN TRADE1 Millions of dollars; exports, F.A.S. value; imports, Customs value; monthly data seasonally adjusted 1991 IItteemm 11998888 11998899 11999900 Mar. Apr. May June July Aug.r Sept.p 1 Exports of domestic and foreign merchandise, excluding grant-aid shipments 322,426 363,812 393,592 34,031 35,632 35,271 34,975 35,227 34,380 35,428 2 General imports, including merchandise for immediate consumption plus entries into bonded warehouses 440,952 473,211 495,311 38,100 40,139 40,062 38,764 41,176 40,910 42,218 3 Trade balance -118,526 -109,399 -101,718 -4,070 -4,507 -4,790 -3,789 -5,949 -6,530 -6,790 1. The Census basis data differ from merchandise trade data shown in table as indicated above. Since Jan. 1, 1987 census data have been released forty-five 3.10, U.S. International Transactions Summary, because of coverage and timing. days after the end of the month; the previous month is revised to reflect late On the export side, the largest difference is the exclusion of military sales (which documents. Total exports and the trade balance reflect adjustments for undocuare combined with other military transactions and reported separately in the mented exports to Canada. Components may not sum to totals because of "service account" in table 3.10, line 6). On the import side, this table includes rounding. imports of gold, ship purchases, imports of electricity from Canada, and other SOURCE. FT900, Summary of U.S. Export and Import Merchandise Trade transactions; military payments are excluded and shown separately in table 3.10, (U.S. Department of Commerce, Bureau of the Census). 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 1991 TTyyppee 11998888 11998899 11999900 Apr. May June July Aug. Sept. Oct." 1 Total 47,802 74,609 83,316 78,297 78,263 74,940 74,816 73,514 74,731 74,508 2 Gold stock, including Exchange Stabilization Fund1 11,057 11,059 11,058 11,058 11,057 11,062 11,062 11,062 11,062 11,059 3 Special drawing rights 9,637 9,951 10,989 10,325 10,515 10,309 10,360 10,479 10,722 10,710 4 Reserve position in International Monetary Fund2 9,745 9,048 9,076 8,806 8,854 8,629 8,730 8,726 9,094 9,065 5 Foreign currencies4 17,363 44,551 52,193 48,108 47,837 44,940 44,664 43,247 43,853 43,674 1. Gold held "under earmark" at Federal Reserve Banks for foreign and cies have been used. U.S. SDR holdings and reserve positions in the IMF also international accounts is not included in the gold stock of the United States; see have been valued on this basis since July 1974. table 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. Special drawing rights are valued according to a techique adopted by the $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1, International Monetary Fund (IMF) in July 1974. Values are based on a weighted 1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093 average of exchange rates for the currencies of member countries. From July 1974 million on Jan. 1, 1981; plus net transactions in SDRs. through December 1980, 16 currencies were used; since January 1981, 5 curren- 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 Apr. May June July Aug. Sept. Oct.p 1 Deposits 347 589 369 292 196 223 314 256 384 223 Assets held in custody 2 U.S. Treasury securities 232,547 224,911 278,499 271,779 279,695 273,893 274,514 279,394 279,013 280,249 3 Earmarked gold 13,636 13,456 13,387 13,363 13,358 13,354 13,330 13,330 13,330 13,326 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; it is not 2. Marketable U.S. Treasury bills, notes, and bonds and nonmarketable U.S. included in the gold stock of the United States. Treasury securities payable in dollars and in foreign currencies at face value. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Summary Statistics A55 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data1 Millions of dollars, end of period 1991 AAsssseettss 11998888 11998899 11999900 Mar. Apr. Mayr June July Aug. Sept. All foreign countries 1 Total, all currencies 505,595 545,366 556,925 548,349r 538,814r 530,707 532,505r 528,772r 527,359' 546,518 7 Claims on United States 169,111 198,835 188,496 184,539"" 181,011r 172,742 180,786"" 174,433"" 168,592' 177,105 Parent bank 129,856 157,092 148,837 143,795 141,580 134,906 141,903 136,790 129,780 136,610 4 Other banks in United States 14,918 17,042 13,296 12,817r 12,438"" 10,589 ll,981r ll,100r 12,367' 13,651 5 Nonbanks 24,337 24,701 26,363 27,927 26,993 27,247 26,902 26,543 26,445 26,844 6 Claims on foreigners 299,728 300,575 312,449 308,071r 301,248"" 298,820 294,260r 294,656r 296,610' 299,632 7 Other branches of parent bank 107,179 113,810 135,003 129,732 122,151 118,469 115,555 112,332 113,017 114,787 8 Banks 96,932 90,703 72,602 73,406r 73,046r 75,566 74,947"" 77,453r 76,165' 77,337 9 Public borrowers 17,163 16,456 17,555 17,915 17,825 17,620 17,420 18,608 19,229' 18,818 10 Nonbank foreigners 78,454 79,606 87,289 87,018r 88,226r 87,165 86,338r 86,263r 88,199 88,690 11 Other assets 36,756 45,956 55,980 55,739 56,555r 59,145 57,459r 59,683r 62,157' 69,781 12 Total payable in U.S. dollars 357,573 382,498 379,479 383,533r 372,769r 363,468 372,929' 364,467r 358,598' 367,439 n Claims on United States 163,456 191,184 180,174 177,452r 174,317r 166,665 174,426r 167,984"" 163,124' 170,926 14 Parent bank 126,929 152,294 142,962 138,850 137,343 130,732 137,943 132,514 126,357 133,024 15 Other banks in United States 14,167 16,386 12,513 12,306r ll,977r 10,197 ll,472r 10,605"" 11,893' 13,068 16 Nonbanks 22,360 22,504 24,699 26,296 24,997 25,736 25,011 24,865 24,874 24,834 17 Claims on foreigners 177,685 169,690 174,451 181,067r 173,544"" 172,657 171,591"" 169,324r 166,794' 166,786 18 Other branches of parent bank 80,736 82,949 95,298 95,106 87,895 85,369 84,231 79,001 79,204 80,056 19 54,884 48,396 36,440 41,IOC 40,904r 43,616 43,551r 45,569' 41,746' 40,633 ?0 Public borrowers 12,131 10,961 12,298 13,206 12,996 12,549 12,485 13,569 14,083 13,496 ?1 Nonbank foreigners 29,934 27,384 30,415 31,655r 31,749"" 31,123 31,324r 31,185r 31,761 32,601 22 Other assets 16,432 21,624 24,854 25,014 24,908r 24,146 26,912"" 27,159"" 28,680' 29,727 United Kingdom 23 Total, all currencies 156,835 161,947 184,818 175,682r 168,985r 169,192 165,534r 161,869' 162,879 172,113 74 Claims on United States 40,089 39,212 45,560 42,529 38,136 38,338 37,574 32,475 31,315 34,409 75 Parent bank 34,243 35,847 42,413 39,372 34,930 34,830 34,534 29,241 28,189 31,205 76 Other banks in United States 1,123 1,058 792 848 1,179 1,104 711 860 816 997 77 Nonbanks 4,723 2,307 2,355 2,309 2,027 2,404 2,329 2,374 2,310 2,207 ?8 Claims on foreigners 106,388 107,657 115,536 110,446r 107,136r 106,053 103,608r 103,067' 103,935 105,699 79 Other branches of parent bank 35,625 37,728 46,367 44,341 40,730 39,060 38,333 36,588 38,382 39,077 30 Banks 36,765 36,159 31,604 30,660 30,608 32,048 31,019 31,866 30,168 31,658 31 Public borrowers 4,019 3,293 3,860 3,943 3,711 3,657 3,584 3,676 3,717 3,502 3? Nonbank foreigners 29,979 30,477 33,705 31,502r 32,087"" 31,288 30,672r 30,937' 31,668 31,462 33 Other assets 10,358 15,078 23,722 22,707 23,713 24,801 24,352 26,327 27,629 32,005 34 Total payable in U.S. dollars 103,503 103,208 116,762 114,890r 108,566r 105,588 106,536r 101,040' 100,966 105,243 35 38,012 36,404 41,259 39,052 35,058 35,274 34,726 29,352 28,870 31,772 36 Parent bank 33,252 34,329 39,609 37,149 32,973 32,771 32,790 27,085 26,608 29,673 37 Other banks in United States 964 843 334 562 976 970 555 759 680 727 38 Nonbanks 3,796 1,232 1,316 1,341 1,109 1,533 1,381 1,508 1,582 1,372 39 Claims on foreigners 60,472 59,062 63,701 65,037r 62,186r 60,125 58,565r 57,861' 56,127 56,354 40 Other branches of parent bank 28,474 29,872 37,142 36,150 32,842 31,297 30,108 29,111 30,279 30,840 41 18,494 16,579 13,135 15,097 15,460 16,118 14,983 15,723 12,534 12,485 4? 2,840 2,371 3,143 3,220 3,193 3,152 3,082 3,032 3,083 2,899 41 10,664 10,240 10,281 10,570"" 10,691"" 9,558 10,392r 9,995' 10,231 10,130 44 Other assets 5,019 7,742 11,802 10,801 11,322 10,691 13,245 13,827 15,%9 17,117 Bahamas and Caymans 45 Total, all currencies 170,639 176,006 162,316 164,516r 165,420' 159,429 168,682r 169,503' 165,615' 169,499 46 Claims on United States 105,320 124,205 112,989 111,357"" 113,916r 107,837 114,779"" 114,501' 111,318' 115,7% 47 73,409 87,882 77,873 75,516 79,818 74,894 80,644 81,605 77,177 80,464 48 Other banks in United States 13,145 15,071 11,869 11,302r 10,416"" 8,925 10,688r 9,683' l l^ 12,022 49 18,766 21,252 23,247 24,539 23,682 24,018 23,447 23,213 23,102 23,310 50 Claims on foreigners 58,393 44,168 41,356 44,517r 42,564"" 42,7% 45,185r 46,526' 46,073' 45,391 51 Other branches of parent bank 17,954 11,309 13,416 13,861 12,554 12,397 12,801 10,767 10,660 10,531 5? 28,268 22,611 16,310 18,220"" 17,955r 18,560 20,888"" 21,818' 21,101' 20,514 53 Public borrowers 5,830 5,217 5,807 6,846 6,556 5,932 5,883 7,103 7,281 7,036 54 Nonbank foreigners 6,341 5,031 5,823 5,590 5,499 5,907 5,613 6,838 7,031 7,310 55 Other assets 6,926 7,633 7,971 8,642 8,940r 8,7% 8,718r 8,476' 8,224' 8,312 56 Total payable in U.S. dollars 163,518 170,780 158,390 160,368r 161,381r 155,643 164,778r 165,574' 161,542' 165,567 1. Since 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
A56 International Statistics • January 1992 3.14—Continued 1991 Mar. Apr. May* June July Aug. Sept. All foreign countries 57 Total, all currencies 505,595 545,366 556,925 548,349* 538,814r 530,707 532,505* 528,772* 527,359' 546,518 58 Negotiable certificates of deposit (CDs) .. 28,511 23,500 18,060 19,920 19,484 17,753 16,503 19,692 18,796 17,579 59 To United States 185,577 197,239 189,412 187,198* 181,132* 173,102 187,493* 181,729* 177,531* 187,723 60 Parent bank 114,720 138,412 138,748 129,836* 124,691* 118,346 127,858* 126,766* 121,515* 131,314 61 Other banks in United States 14,737 11,704 7,463 10,975 9,932 8,998 11,758 10,079 10,078 11,957 62 Nonbanks 56,120 47,123 43,201 46,387* 46,509* 45,758 47,877* 44,884* 45,938* 44,452 63 To foreigners 270,923 296,850 311,668 306,047 300,907 301,433 290,297 287,887 290,257 295,180 64 Other branches of parent bank 111,267 119,591 139,113 129,201 122,789 119,765 116,253 112,521 112,845 114,101 65 Banks 72,842 76,452 58,986 63,262 63,908 66,207 57,256 59,975 62,329 62,689 66 Official institutions 15,183 16,750 14,791 15,864 18,398 19,803 20,394 17,245 18,030 19,459 67 Nonbank foreigners 71,631 84,057 98,778 97,720 95,812 95,658 96,394 98,146 97,053 98,931 68 Other liabilities 20,584 27,777 37,785 35,184* 37,291* 38,419 38,212* 39,464* 40,775* 46,036 69 Total payable in U.S. dollars 367,483 3%,613 383,522 382,569' 373,468* 360,363 372,359* 363,328* 359,679* 367,010 70 Negotiable CDs 24,045 19,619 14,094 15,335 14,882 13,258 12,620 14,538 14,183 13,180 /I To United States 173,190 187,286 175,654 174,819* 169,661* 160,778 175,350* 170,069* 166,489* 175,976 72 Parent bank 107,150 132,563 130,510 122,651* 118,105* 111,112 120,624* 120,040* 115,335* 124,804 73 Other banks in United States 13,468 10,519 6,052 9,429 8,514 7,668 10,616 8,804 8,442 10,368 74 Nonbanks 52,572 44,204 39,092 42,739* 43,042* 41,998 44,110* 41,225* 42,712* 40,804 75 To foreigners 160,766 176,460 179,002 177,902 173,589 171,227 170,354 163,451 164,188 163,581 76 Other branches of parent bank 84,021 87,636 98,128 93,910 88,299 85,857 84,952 79,909 79,277 79,679 77 Banks 28,493 30,537 20,251 23,769 22,892 21,706 21,162 21,470 23,330 21,241 78 Official institutions 8,224 9,873 7,921 9,205 11,568 12,339 13,972 11,563 11,496 12,591 79 Nonbank foreigners 40,028 48,414 52,702 51,018 50,830 51,325 50,268 50,509 50,085 50,070 80 Other liabilities 9,482 13,248 14,772 14,513* 15,336* 15,100 14,035* 15,270* 14,819 14,273 United Kingdom 81 Total, all currencies 156,835 161,947 184,818 175,682* 168,985* 169,192 165,534* 161,869* 162,879 172,113 82 Negotiable CDs 24,528 20,056 14,256 15,820 15,162 13,486 12,196 14,889 14,148 12,941 83 To United States 36,784 36,036 39,928 35,066 28,450 28,618 31,084 26,599 27,915 31,534 84 Parent bank 27,849 29,726 31,806 26,826 21,676 19,951 23,238 19,545 20,367 23,707 85 Other banks in United States 2,037 1,256 1,505 1,230 1,175 1,413 1,092 1,490 1,662 1,838 86 Nonbanks 6,898 5,054 6,617 7,010 5,599 7,254 6,754 5,564 5,886 5,989 87 To foreigners 86,026 92,307 108,531 105,090 103,976 104,322 99,756 97,263 96,773 98,572 88 Other branches of parent bank 26,812 27,397 36,709 33,084 31,860 30,155 29,371 28,591 27,457 29,898 89 Banks 30,609 29,780 25,126 26,609 27,001 28,459 22,994 24,310 25,131 23,560 90 Official institutions 7,873 8,551 8,361 8,969 11,300 12,342 13,062 10,010 10,722 12,071 91 Nonbank foreigners 20,732 26,579 38,335 36,428 33,815 33,366 34,329 34,352 33,463 33,043 92 Other liabilities 9,497 13,548 22,103 19,706* 21,397* 22,766 22,498* 23,118* 24,043 29,066 93 Total payable in U.S. dollars 105,907 108,178 116,094 112,984r 106,571* 104,077 104,523* 99,756* 100,131 104,303 94 Negotiable CDs 22,063 18,143 12,710 13,816 13,291 11,610 10,833 12,758 12,337 11,249 95 To United States 32,588 33,056 34,697 30,779 24,690 24,245 27,106 22,355 23,788 27,272 % Parent bank 26,404 28,812 29,955 25,450 20,391 18,457 21,848 17,924 18,949 22,228 97 Other banks in United States 1,752 1,065 1,156 800 848 1,002 892 1,233 1,216 1,259 98 Nonbanks 4,432 3,179 3,586 4,529 3,451 4,786 4,366 3,198 3,623 3,785 99 To foreigners 47,083 50,517 60,014 59,985 59,440 58,849 58,068 55,433 54,848 56,829 100 Other branches of parent bank 18,561 18,384 25,957 24,049 22,452 21,671 20,452 19,509 18,480 20,878 101 Banks 13,407 12,244 9,488 10,112 9,931 9,654 8,758 9,678 9,731 8,408 102 Official institutions 4,348 5,454 4,692 6,188 8,239 8,914 10,032 7,519 7,929 9,149 103 Nonbank foreigners 10,767 14,435 19,877 19,636 18,818 18,610 18,826 18,727 18,708 18,394 104 Other liabilities 4,173 6,462 8,673 8,404* 9,150* 9,373 8,516* 9,210* 9,158 8,953 Bahamas and Caymans 105 Total, all currencies 170,639 176,006 162,316 164,516* 165,420* 159,429 168,682* 169,503* 165,615* 169,499 106 Negotiable CDs 953 678 646 729 674 694 696 904 963 1,055 107 To United States 122,332 124,859 114,738 119,919* 121,850* 115,742 125,670* 126,542* 122,399* 127,484 108 Parent bank 62,894 75,188 74,941 73,528* 74,609* 72,048 76,486* 81,023* 76,495* 81,450 109 Other banks in United States 11,494 8,883 4,526 8,223 7,548 6,410 9,438 7,473 7,029 8,841 110 Nonbanks 47,944 40,788 35,271 38,168* 39,693* 37,284 39,746* 38,046* 38,875* 37,193 111 To foreigners 45,161 47,382 44,444 41,660 40,289 40,696 40,180 39,624 39,994 38,863 112 Other branches of parent bank 23,686 23,414 24,715 22,303 21,645 22,017 21,701 21,765 21,846 20,767 113 Banks 8,336 8,823 5,588 6,232 5,837 5,832 5,734 4,877 5,558 5,426 114 Official institutions 1,074 1,097 622 674 676 736 931 661 655 647 115 Nonbank foreigners 12,065 14,048 13,519 12,451 12,131 12,111 11,814 12,321 11,935 12,023 116 Other liabilities 2,193 3,087 2,488 2,208 2,607 2,297 2,136 2,433 2,259* 2,097 117 Total payable in U.S. dollars 162,950 171,250 157,132 159,373* 161,139* 155,204 164,394* 165,167* 161,322* 164,836 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Summary Statistics A57 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1991 Mar. Apr. May July Aug.r 1 Total1 312,477 344,504 349,9% 344,605 351,017 346,511 349,864' 356,105 By type 2 Liabilities reported by banks in the United States . 36,4% 39,855 42,240 39,057 41,891 41,156 43,336r 47,125 3 U.S. Treasury bills and certificates3 76,985 79,424 83,990 81,087 82,421 84,526 86,071 88,5% U.S. Treasury bonds and notes 4 Marketable 179,269 202,487 200,203 201,089 203,109 197,277 196,573 1%,284 5 Nonmarketable 568 4,491 4,580 4,610 4,642 4,672 4,704 4,734 6 U.S. securities other than U.S. Treasury securities 19,159 18,247 18,983 18,762 18,954 18,880 19,180 19,366 By area 7 Western Europe 132,849 167,191 166,516 163,012 167,009 163,994 166,333r 170,301 8 Canada 9,482 8,671 8,466 8,453 9,507 9,229 9,260 10,001 9 Latin America and Caribbean 9,313 21,159 24,639 25,355 27,732 29,415 30,032 31,352 10 Asia 153,338 138,0% 139,759 137,662 136,510 133,764 134,288r 134,338 11 Africa , 1,030 1,434 1,802 1,171 1,184 1,254 1,178 1,197 12 Other countries6 6,469 7,955 8,814 8,953 9,073 8,851 8,771 8,914 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 SOURCE. 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 in 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 Sept. Dec. Mar. Juner 55,438 74,980 67,835 71,028 70,413 64,347 59,236 51,271 68,983 65,127 68,675 66,855 67,309 61,481 18,861 25,100 20,491 27,206 29,672 27,510 27,545 32,410 43,884 44,636 41,470 37,182 39,799 33,935 551 364 33,,550077 22,,884433 1100,,559944 77,,335577 22,,773333 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
A58 International Statistics • January 1992 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 1991 HHoollddeerr aanndd ttyyppee ooff lliiaabbiilliittyy 11998888 11998899 11999900 Mar. Apr. May June Julyr Aug.r Sept.p 1 All foreigners 685,339 736,878 754,005 749,186 732,847 727,365 723,281 722,670 729,100 730,966 2 Banks' own liabilities 514,532 577,498 577,190 570,187 562,129 556,510 549,382 547,948 552,386 552,134 3 Demand deposits 21,863 22,032 21,723 20,217 19,751 18,863 18,796 17,929 18,423 19,932 4 Time deposits 152,164 168,780 168,003 163,986 157,148 151,772 148,452 148,566 147,033 149,694 Other. 51,366 67,823 65,809 71,785 73,718 72,632 65,438 66,870 71,768 67,444 6 Own foreign offices 289,138 318,864 321,655 314,199 311,512 313,244 316,6% 314,583 315,162 315,064 7 Banks' custody liabilities5 170,807 159,380 176,815 178,999 170,718 170,855 173,899 174,722 176,714 178,832 8 U.S. Treasury bills and certificates 115,056 91,100 %,796 102,120 97,311 98,019 100,876 101,733 104,919 106,999 9 Other negotiable and readily transferable instruments 16,426 19,526 17,578 17,633 16,475 16,959 17,944 17,287 16,381 17,056 10 Other 39,325 48,754 62,441 59,246 56,933 55,876 55,079 55,702 55,414 54,777 11 Nonmonetary international and regional organizations 3,224 4,894 5,918 6,669 6,237 6,057 55,,991177 66,,222266 66,,993355 66,,889955 12 Banks' own liabilities 2,527 3,279 4,540 4,806 5,061 4,675 3,863 4,117 4,961 5,390 13 Demand deposits 71 96 36 22 76 24 26 44 28 36 14 Time deposits 1,183 927 1,050 2,034 1,980 2,151 2,010 1,732 1,540 2,287 15 Other. 1,272 2,255 3,455 2,750 3,006 2,501 1,827 2,341 3,393 3,067 16 Banks' custody liabilities5 698 1,616 1,378 1,863 1,176 1,381 2,054 2,109 1,974 1,505 17 U.S. Treasury bills and certificates6 57 197 364 1,103 275 662 1,287 1,404 1,269 1,032 18 Other negotiable and readily transferable instruments 641 1,417 1,014 760 901 719 767 705 770055 473 19 Other 0 2 0 0 0 0 0 0 0 0 20 Official institutions9 135,241 113,481 119,278 126,230 120,144 124,311 125,682 129,407 135,721 128,406 21 Banks' own liabilities 27,109 31,108 34,885 38,570 36,096 38,545 36,788 38,805 42,907 33,464 77 Demand deposits 1,917 2,1% 1,924 1,643 1,633 1,448 1,542 1,3% 1,683 1,647 73 Time deposits 9,767 10,495 14,334 13,926 13,546 14,346 14,638 14,941 14,693 12,893 24 Other 15,425 18,417 18,628 23,000 20,917 22,751 20,608 22,468 26,531 18,924 7,5 Banks' custody liabilities5 108,132 82,373 84,393 87,661 84,048 85,766 88,894 90,602 92,814 94,942 26 U.S. Treasury bills and certificates 103,722 76,985 79,424 83,990 81,087 82,421 84,526 86,071 88,596 90,394 27 Other negotiable and readily transferable instruments 4,130 5,028 4,766 3,578 2,831 3,194 4,101 4,324 4,047 4,128 28 Other 280 361 203 92 130 152 267 207 171 420 29 Banks10 459,523 515,275 535,202 521,431 510,795 500,983 499,494 494,662 496,968 504,437 30 Banks' own liabilities 409,501 454,273 458,457 446,766 440,068 432,311 431,592 427,575 429,684 437,669 31 Unaffiliated foreign banks 120,362 135,409 136,802 132,567 128,555 119,068 114,8% 112,992 114,522 122,605 3? Demand deposits 9,948 10,279 10,053 10,052 9,073 8,674 8,584 8,423 8,252 8,959 33 Time deposits 80,189 90,557 88,558 84,205 79,232 72,355 69,826 70,078 71,304 75,161 34 Other. 30,226 34,573 38,192 38,310 40,250 38,038 36,486 34,491 34,966 38,485 35 Own foreign offices 289,138 318,864 321,655 314,199 311,512 313,244 316,6% 314,583 315,162 315,064 36 Banks' custody liabilities5 50,022 61,002 76,745 74,666 70,728 68,672 67,903 67,087 67,284 66,768 37 U.S. Treasury bills and certificates 7,602 9,367 10,669 10,674 10,030 8,712 8,666 7,970 8,242 8,158 38 Other negotiable and readily transferable 5,725 5,124 5,341 6,449 6,116 5,877 5,833 5,408 55,,119944 5,706 39 Other 36,694 46,510 60,735 57,543 54,582 54,083 53,404 53,709 53,848 52,904 40 Other foreigners 87,351 103,228 93,606 94,856 95,671 %,014 92,188 92,375 89,476 91,228 41 Banks' own liabilities 75,396 88,839 79,307 80,046 80,905 80,978 77,139 77,451 74,834 75,611 4? Demand deposits 9,928 9,460 9,711 8,500 8,969 8,717 8,644 8,066 8,460 9,290 43 Time deposits 61,025 66,801 64,062 63,820 62,391 62,920 61,977 61,815 59,496 59,353 44 Other. 4,443 12,577 5,534 7,725 9,545 9,341 6,518 7,570 6,878 6,968 45 Banks' custody liabilities5 11,956 14,389 14,299 14,810 14,766 15,035 15,049 14,924 14,642 15,617 46 U.S. Treasury bills and certificates 3,675 4,551 6,339 6,354 5,919 6,224 6,397 6,288 6,812 7,415 47 Other negotiable and readily transferable instruments7 5,929 7,958 6,457 6,845 6,626 7,170 7,244 6,850 6,435 6,749 48 Other 2,351 1,880 1,503 1,611 2,221 1,642 1,408 1,786 1,395 1,453 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 6,425 7,203 7,073 7,209 7,321 7,563 7,934 6,813 6,569 7,371 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. For 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. For agencies, branches, and majority-owned subsidiaries of the Inter-American and Asian Development Banks. Data exclude "holdings of foreign banks, consists principally of amounts due to head office or parent foreign dollars" of the International Monetary Fund. bank, and foreign branches, agencies, or wholly owned subsidiaries of head office 9. Foreign central banks, foreign central governments, and the Bank for or parent foreign bank. International Settlements. 10. Excludes central banks, which are included in "Official institutions." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Nonbank-Reported Data A59 3.17—Continued 1991 Area and country 1988 1990 Apr. May July Aug.r 1 Total 685,339 736,878 754,005 749,186 732,847 727,365 723,281 722,670r 729,100 2 Foreign countries 682,115 731,984 748,087 742,517 726,610 721,308 717,364 716,444r 722,165 3 Europe 231,912 237,501 254,452 250,208 241,708 238,174 236,448 228,728r 234,784 4 5 A B u el s g tr i i u a m -Luxembourg 1 1 0 , , 1 0 5 2 5 2 1 1 0 , , 2 6 3 4 3 8 1 1 2, , 3 2 8 2 2 9 12 1 , , 2 4 2 9 1 3 1 1 2, , 3 1 9 4 3 7 11 1 , , 5 1 9 0 3 0 1 1 1 , .8 0 5 6 4 7 12 l, , 2 2 3 9 4 2 r r 11, 9 1 6 68 1 1 1 6 7 8 9 0 1 F D G G I F t i r a e r e n a e l n r l y n e m a m c c n a e e a d n r k y 2 1 4 2 6 4 , , , , 7 7 2 2 6 5 7 7 0 8 7 9 7 2 0 5 2 9 2 1 6 7 6 1 1 , , , , , 9 5 1 5 4 0 0 7 6 7 1 2 3 8 9 0 5 8 3 1 0 7 7 1 , , , , 9 6 4 9 7 3 4 0 8 3 3 9 6 5 4 2 5 9 2 1 8 9 7 , , , 2 1 9 6 7 3 1 3 4 6 8 6 0 3 7 3 6 2 2 1 6 8 5 , , , 9 7 4 9 8 0 6 2 4 4 0 3 9 4 5 3 9 6 2 1 6 8 4 , , , 2 4 4 7 9 7 7 5 2 8 8 8 0 3 3 5 8 8 2 1 6 7 4 1 , , , , 3 8 7 7 3 3 8 9 4 2 3 7 2 1 5 2 2 0 2 1 6 7 3 I 1 , , , , , 2 7 8 0 8 1 2 4 5 1 8 9 7 2 6 3 7 7 r r r r r 2 1 6 7 2 1 1 , , , , , 5 0 5 8 1 0 8 3 0 5 7 6 0 7 7 1 0 5 12 Netherlands 5,316 6,613 5,350 6,204 6,773 6,686 6,100 6,069 5,651 13 Norway 1,559 2,401 2,357 2,120 1,098 1,167 1,926 1,653 1,279 14 Portugal 903 2,418 2,958 2,778 2,628 2,410 2,392 2,279 2,313 15 Spain 5,494 4,364 7.544 9.784 10,006 10,095 9,392 10,496 10,396 16 Sweden 1,284 1,491 1,837 1,159 720 525 745 858 1,424 17 Switzerland 34,199 34,496 36,690 38,200 36,716 34,884 36,124 34,818 35,977 1 1 8 9 T U u n r i k te e d y Kingdom 111 1 , , 8 0 1 1 1 2 102 1 , , 3 8 6 1 2 8 109 1 , , 5 1 5 6 5 9 103 1 , , 1 4 0 8 1 0 101 1 , , 5 4 6 9 7 0 99 1 , , 8 5 7 3 9 5 98 1 , , 1 8 9 0 9 6 89 1 , , 9 7 9 2 5 0 r 95 1 , , 2 7 6 8 5 0 20 Yugoslavia 529 1,474 928 848 1,034 953 925 1,016 955 21 Other Western Europe11 8,598 13,563 11,689 10,891 10,335 12,797 11,371 12,423 15,026 22 USSR 138 350 119 106 138 129 178 75 136 23 Other Eastern Europe12 591 608 1.545 2,722 2,739 2,713 2,925 2,878 3,243 24 Canada 21,062 18,865 20,349 23,447 23,264 22,740 23,850 22,519r 23,868 25 Latin America and Caribbean 271,146 311,028 327,370 325,968 325,444 328,845 328,380 335,338r 334,335 26 Argentina 7,804 7,304 7,365 7,868 7,704 7,591 7,519 7,110 7,042 27 Bahamas 86,863 99,341 107,386 96,313 96,307 97,485 96.855 98,021r 93,987 28 Bermuda 2,621 2,884 2,822 2,885 2,753 3,054 2,919 3,087r 3,512 2 3 9 0 B B r r a it z i i s l h West Indies 11 5 3 , , 3 8 1 4 4 0 13 6 8 , , 3 3 5 0 1 9 14 5 1 , , 8 7 3 1 4 9 15 6 0 , , 4 7 7 5 2 2 15 5 0 , , 8 9 0 9 6 3 15 5 1 , , 7 6 5 2 6 9 15 5 0 , , 7 9 4 3 9 9 15 5 7 , , 8 3 0 7 6 2 r 15 6 9 , , 0 1 5 2 0 8 3 3 1 2 C Ch o i l l o e m bia 4 2 , , 3 9 7 3 4 6 4 3 , , 6 2 5 1 3 2 4 3 , , 4 1 9 4 2 5 2 3 , . 9 78 9 5 5 4 3 , , 3 1 4 0 7 7 4 3 , , 4 2 0 4 8 0 4 3 , , 4 2 4 3 8 3 4 3 , , 4 3 2 08 1 r 4 3 , , 7 1 3 7 7 8 33 Cuba 10 10 11 7 8 8 7 2 9 34 Ecuador 1,379 1,391 1,379 1,319 1,260 1,293 1,288 1,270 1,239 35 Guatemala 1,195 1,312 1,541 1,617 1,571 1,595 1,664 1,641 1,613 36 Jamaica 269 209 257 268 233 237 273 219 227 37 Mexico 15,185 15,423 16,625 17,405 17,508 18,657 19,552 20,008 20,357 38 Netherlands Antilles 6,420 6,310 7,357 6,577 6,874 5,962 5,935 5,830 5,734 39 Panama 4,353 4,362 4,574 4,450 4,290 4,549 4,672 4,438 4,750 40 Peru 1,671 1,984 1,294 1,362 1,427 1,412 1,341 1,334 1,288 41 Uruguay 1,898 2,284 2,520 2,509 2,463 2,488 2,573 2,452 2,441 4 4 3 2 O V t e h n e e r z uela 9 5 , , 1 8 4 6 7 8 9 6, , 2 4 0 8 6 2 1 6 2 , , 7 2 7 7 9 1 1 7 2 , , 1 2 1 6 7 6 1 6 1 , , 9 8 5 3 9 3 1 6 2 , , 8 6 1 6 5 5 1 6 2 , , 8 5 2 8 8 5 1 6 2 , , 8 1 4 76 3 r 1 6 2 , , 7 2 8 5 9 4 44 Asia 147,838 156,201 136,842 133,878 127,737 122,893 120,618 121,985r 121,157 China 45 Mainland 1,895 1,773 2,421 3,030 2,415 2,446 2,412 2,408 2,247 4 4 6 7 Ho T n a g i w K a o n n g 2 1 6 2 , , 0 2 5 4 8 8 1 1 9 2 , , 5 4 8 1 8 6 1 12 1 , , 7 2 5 4 4 6 1 15 1 , , 7 2 9 9 4 6 1 1 1 6 , , 0 1 0 4 1 1 1 1 0 5 , , 6 0 4 3 9 5 1 9 4 , , 8 5 3 8 8 2 1 1 1 4 , , 1 7 7 2 8 0 r 1 14 1 , , 2 5 0 3 7 7 4 4 5 5 5 5 5 5 5 8 9 0 4 1 2 3 5 6 I J I T P O I K M n n s a h h t o r d d p i h i a a d r i l o a i e e a i e d n l n r p l a a l e p e n s i - d n i E a e a s s t oil-exporting countries1f3 . 7 1 1 4 2 1 1 2 1 3 1 , , , , , , , , 0 5 6 4 0 2 1 1 2 1 4 6 8 9 8 6 6 3 5 1 1 3 9 0 0 3 6 8 1 1 1 3 2 1 1 7 3 1 , , , , , , , , 1 2 0 2 2 4 3 7 7 8 1 8 9 4 9 7 6 8 4 5 1 3 3 1 0 6 0 6 1 1 2 7 2 1 5 6 1 1 1 , , , , , , , , . 7 2 0 2 8 9 5 2 4 6 8 7 3 2 6 8 3 4 7 7 4 8 9 5 5 3 3 5 1 1 2 2 2 6 1 5 8 1 1 , , , , , , , , , 9 2 8 4 9 6 2 9 6 6 3 1 4 4 0 0 4 0 6 1 5 1 2 3 4 8 9 5 1 1 2 2 3 2 4 1 7 1 1 , , , , , , , , , 8 8 1 5 3 6 1 8 6 4 8 7 0 7 6 5 9 8 9 7 2 9 1 2 5 5 1 5 1 1 2 2 2 2 4 1 1 6 1 , , , , , , , , , 5 1 0 5 1 3 9 5 5 6 9 3 2 0 0 6 6 2 4 3 1 2 2 3 8 0 1 5 1 1 2 2 1 2 1 6 3 1 1 , , , , , , , , , 3 4 3 1 9 3 9 5 6 5 8 0 8 4 5 8 5 1 5 2 6 2 9 9 7 5 2 5 1 1 2 0 2 2 2 5 5 l 1 , , , , , , , , , 3 I 0 1 3 3 7 5 9 9 7 0 2 3 3 6 6 7 2 6 1 8 8 7 4 8 5 r r r r r 4 1 1 2 2 8 2 2 1 7 4 1 , , , , , , , , , 6 1 3 4 6 2 2 8 4 9 7 7 3 9 5 6 5 2 7 2 3 2 9 0 5 8 0 57 Africa 3,991 3,824 4,630 4,908 4,495 4,695 4,188 3,929 4,017 58 Egypt 911 686 1,425 1,449 927 1,364 1,017 999 957 59 Morocco 68 78 104 91 89 97 122 81 91 60 South Africa 437 206 228 312 220 202 241 221 137 61 Zaire 85 86 53 52 50 52 45 24 58 6 6 2 3 O Oi t l h - e e r x porting countries 1 1 , , 0 4 1 7 7 4 1 1 , ,6 1 4 21 8 1 1, , 7 1 1 1 0 0 1 1, , 6 3 3 7 4 0 1 1 , , 4 7 3 7 4 6 1 1, , 8 1 4 4 0 0 1 1 , , 1 6 0 5 5 8 1, 9 64 6 4 0 1, 9 7 9 8 2 2 64 Other countries 6,165 4,564 4.444 4,109 3,962 3,962 3,879 3,945r 4,004 65 Australia 5,293 3,867 3,807 3,131 3,118 3,232 3,097 3,173r 3,149 66 All other 872 697 637 978 845 730 781 772 855 67 Nonmonetary international and regional organizations 3,224 4,894 5,918 6,669 6,237 6,057 5,917 6,226r 6,935 68 International1 2,503 3,947 4,390 5,108 4,895 4,641 4,025 4,346r 4,361 69 Latin American regional 589 684 1,048 1,170 913 802 1,410 1,273 1,531 70 Other regional16 133 263 479 391 429 614 482 607 1,043 11. Includes the Bank for International Settlements and Eastern European 14. Comprises Algeria, Gabon, Libya, and Nigeria. countries not listed in line 23. 15. Excludes "holdings of dollars" of the International Monetary Fund. 12. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania. 16. Asian, African, Middle Eastern, and European regional organizations, 13. 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
A60 International Statistics • January 1992 3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1 Payable in U.S. Dollars Millions of dollars, end of period 1991 AArreeaa aanndd ccoouunnttrryy 11998888 11998899 11999900 Mar. Apr. May June July Aug.r Sept." 1 Total 491,165 534,492 511,543 498,454 508,419 503,064 504,738 497,441r 502,573 500,510 2 Foreign countries 489,094 530,630 506,750 495,953 505,558 500,134 500,656 495,407r 500,151 497,979 3 Europe 116,928 119,025 113,093 104,309 100,367 99,221 99,001 97,828r 98,740 103,398 4 Austria 483 415 362 270 392 220 303 269 185 297 5 Belgium-Luxembourg 8,515 6,478 5,473 5,685 5,472 7,841 6,721 5,924r 6,534 7,044 6 Denmark 483 582 497 598 765 909 896 898 945 670 7 Finland 1,065 1,027 1,047 1,152 1,168 862 668 642 771 908 8 France 13,243 16,146 14,468 14,961 13,934 13,578 14,302 14,292r 13,827 14,440 9 Germany 2,329 2,865 3,343 3,305 3,236 2,631 2,782 2,690 3,222 2,714 10 Greece 433 788 727 667 688 762 654 619 495 473 11 Italy 7,936 6,662 6,052 6,617 5,429 5,827 6,329 5,91 lr 5,931 6,549 12 Netherlands 2,541 1,904 1,761 2,134 2,222 1,960 2,122 2,234 2,101 2,005 13 Norway 455 609 782 765 679 695 701 661 599 679 14 Portugal 261 376 292 384 293 322 378 260 308 266 15 Spain 1,823 1,930 2,668 3,334 3,344 3,082 2,056 2,582 1,995 2,220 16 Sweden 1,977 1,773 2,094 2,314 1,944 1,937 1,968 l,858r 1,633 1,894 17 Switzerland 3,895 6,141 4,202 3,167 3,240 3,487 2,969 3,627 3,609 4,049 18 Turkey 1,233 1,071 1,405 1,537 1,440 1,445 1,593 1,458r 1,407 1,368 19 United Kingdom 65,706 65,527 65,151 53,948 52,553 50,159 51,363 50,836r 51,674 54,524 20 Yugoslavia 1,390 1,329 1,142 991 1,012 965 932 877 820 802 21 Other Western Europe2 1,152 1,302 597 1,141 1,118 999 734 832r 1,024 777 22 U.S.S.R 1,255 1,179 530 781 904 956 911 772r 1,015 1,160 23 Other Eastern Europe3 754 921 499 558 533 585 618 586 645 559 24 Canada 18,889 15,451 16,091 17,077 17,600 17,713 17,431 16,719r 14,495 14,727 25 Latin America and Caribbean 214,264 230,438 231,506 235,487 240,899 244,314 248,511 245,982r 249,217 250,%7 26 Argentina 11,826 9,270 6,967 6,574 6,420 6,363 6,128 5,945r 5,750 5,750 27 Bahamas 66,954 77,921 76,525 74,111 77,231 79,429 78,024 81,295r 78,415 80,315 28 Bermuda 483 1,315 4,056 4,133 4,935 7,182 3,893 5,813 11,773 6,973 29 Brazil 25,735 23,749 17,995 18,324 16,524 15,594 15,249 12,351 12,333 12,394 30 British West Indies 55,888 68,749 88,565 102,240 105,220 105,686 114,954 110,553r 111,019 112,541 31 Chile 5,217 4,353 3,271 3,169 3,050 3,032 2,917 2,823 2,779 2,732 32 Colombia 22,,994444 2,784 2,587 2,443 2,334 2,281 2,349 2,202 2,368 2,430 33 Cuba 11 1 0 0 0 0 0 0 0 0 34 Ecuador 2,075 1,688 1,387 1,325 1,326 1,339 1,344 1,263 1,238 1,115 35 Guatemala 198 197 191 212 222 220 203 190 182 186 36 Jamaica 212 297 238 224 197 181 187 144 150 150 37 Mexico 24,637 23,376 14,851 15,091 15,609 15,177 15,411 15,450 15,279 16,389 38 Netherlands Antilles 1,306 1,921 7,998 1,298 1,496 1,589 1,639 1,563 1,540 3,606 39 Panama 2,521 1,740 1,471 1,479 1,475 1,410 1,423 1,501 1,490 1,489 40 Peru 1,013 771 663 697 670 722 726 712 728 718 41 Uruguay 910 929 786 588 620 615 590 577 571 576 42 Venezuela 10,733 9,652 2,571 2,170 2,211 2,223 2,222 2,405 2,403 2,459 43 Other 1,612 1,726 1,384 1,409 1,360 1,271 1,252 1,195 1,199 1,144 44 Asia 113300,,888811 157,474 138,722 131,514 139,243 131,465 128,051 127,560r 130,222 120,515 China 45 Mainland 762 634 620 723 641 567 992 659 575 604 46 Taiwan 4,184 2,776 1,952 1,277 1,685 1,390 2,019 1,6% 1,522 1,430 47 Hong Kong 10,143 11,128 10,648 9,737 10,891 9,870 9,217 9,05lr 9,154 9,465 48 India 560 621 655 556 574 478 432 409 425 449 49 Indonesia 674 651 933 1,136 1,029 982 891 874 860 854 50 Israel 1,136 813 774 952 871 829 851 818r 919 945 51 Japan 90,149 111,300 90,699 84,810 91,482 88,821 85,689 88,183r 90,604 80,701 52 Korea 5,213 5,323 5,766 6,224 6,193 5,584 5,924 5,597 5,383 5,146 53 Philippines 1,876 1,344 1,247 1,445 1,478 1,452 1,506 1,647 1,682 1,633 54 Thailand 848 1,140 1,573 1,764 1,662 1,747 1,977 1,975 1,870 1,934 55 Middle East oil-exporting countries 6,213 10,149 10,749 12,386 12,286 9,636 10,468 9,771 9,741 10,439 56 Other 9,122 11,594 13,106 10,504 10,449 10,110 8,087 6^ 7,487 6,915 57 Africa 5,718 5,890 5,445 5,488 5,355 5,464 5,429 5,417 5,337 5,265 58 Egypt 507 502 380 304 304 305 315 324 315 312 59 Morocco 511 559 513 538 538 603 590 597 576 574 60 South Africa 1,681 1,628 1,525 1,628 1,627 1,641 1,626 1,627 1,610 11,,449988 61 Zaire 17 16 16 17 18 18 12 9 9 88 62 Oil-exporting countries 1,523 1,648 1,486 1,452 1,372 1,365 1,336 1,285 1,273 1,270 63 Other 1,479 1,537 1,525 1,547 1,497 1,533 1,550 1,575 1,554 1,603 64 Other countries 2,413 2,354 1,892 2,078 2,093 1,957 2,233 l,901r 2,140 3,107 65 Australia 1,520 1,781 1,413 1,467 1,569 1,470 1,621 1,384 1,464 2,275 66 All other 894 573 479 611 524 487 611 517r 676 832 67 Nonmonetary intepational and regional organizations 2,071 33,,886622 4,793 2,501 2,861 2,930 4,081 2,034r 2,422 2,531 1. Reporting banks include all kinds of depository institutions besides commer- 4. 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 5. Comprises Algeria, Gabon, Libya, and Nigeria. countries not listed in line 23. 6. Excludes the Bank for International Settlements, which is included in 3. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania. "Other Western Europe." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Nonbank-Reported Data A61 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 1991 TTyyppee ooff ccllaaiimm 11998888 11998899 11999900 Mar. Apr. May June July Aug.r Sept.p 555555533333338888888,,,,,,,666666688888889999999 555555599999993333333,,,,,,,000000088888887777777 555555577777777777777,,,,,,,222222211111113333333 555555566666661111111,,,,,,,444444444444441111111 555555577777770000000,,,,,,,444444477777776666666 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 444444499999991111111,,,,,,,111111166666665555555 555555533333334444444,,,,,,,444444499999992222222 555555511111111111111,,,,,,,555555544444443333333 444444499999998888888,,,,,,,444444455555554444444 508,419 503,064 555555500000004444444,,,,,,,777777733333338888888 497,441 502,573 500,510 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 66666662222222,,,,,,,666666655555558888888 66666660000000,,,,,,,555555511111111111111 44444441111111,,,,,,,888888833333338888888 44444443333333,,,,,,,999999944444446666666 42,960 38,928 33333339999999,,,,,,,333333311111115555555 34,814 35,392 35,256 44 OOwwnn ffoorreeiiggnn ooffffiicceess22 222222255555557777777,,,,,,,444444433333336666666 222222299999996666666,,,,,,,000000011111111111111 333333300000004444444,,,,,,,333333311111115555555 222222299999999999999,,,,,,,000000044444445555555 304,028 298,517 333333300000005555555,,,,,,,999999911111114444444 305,392 301,593 304,264 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111122222229999999,,,,,,,444444422222225555555 111111133333334444444,,,,,,,888888888888885555555 111111111111117777777,,,,,,,888888866666660000000 111111111111110000000,,,,,,,666666600000005555555 112,640 117,674 111111111111114444444,,,,,,,888888855555558888888 114,871 116,481 113,633 66 DDeeppoossiittss 66666665555555,,,,,,,888888899999998888888 77777778888888,,,,,,,111111188888885555555 66666665555555,,,,,,,222222255555552222222 66666663333333,,,,,,,111111100000000000000 64,748 68,822 66666668888888,,,,,,,666666699999995555555 69,066 70,492 68,547 77 OOtthheerr 66666663333333,,,,,,,555555522222227777777 55555556666666,,,,,,,777777700000000000000 55555552222222,,,,,,,666666600000008888888 44444447777777,,,,,,,555555500000005555555 47,892 48,852 44444446666666,,,,,,,111111166666662222222 45,805 45,989 45,086 88 AAllll ootthheerr ffoorreeiiggnneerrss 44444441111111,,,,,,,666666644444446666666 44444443333333,,,,,,,000000088888885555555 44444447777777,,,,,,,555555533333330000000 44444444444444,,,,,,,888888855555558888888 48,791 47,945 44444444444444,,,,,,,666666655555550000000 42,364 49,107 47,357 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss33...... 44444447777777,,,,,,,555555522222224444444 55555558888888,,,,,,,555555599999994444444 66666665555555,,,,,,,666666677777770000000 66666662222222,,,,,,,999999988888887777777 66666665555555,,,,,,,777777733333338888888 8888888,,,,,,,222222288888889999999 11111113333333,,,,,,,000000011111119999999 11111114444444,,,,,,,333333377777775555555 11111117777777,,,,,,,000000044444443333333 11111119999999,,,,,,,333333388888880000000 11 Negotiable and readily transferable 22222225555555,,,,,,,777777700000000000000 33333330000000,,,,,,,999999988888883333333 44444440000000,,,,,,,999999988888887777777 33333334444444,,,,,,,999999955555550000000 33333335555555,,,,,,,444444400000004444444 12 Outstanding collections and other 11111113333333,,,,,,,555555533333335555555 11111114444444,,,,,,,555555599999992222222 11111110000000,,,,,,,333333300000007777777 11111110000000,,,,,,,999999999999994444444 11111110000000,,,,,,,999999955555553333333 13 MEMO: Customer liability on 11111119999999,,,,,,,555555599999996666666 11111112222222,,,,,,,888888899999999999999 11111113333333,,,,,,,666666655555559999999 11111111111111,,,,,,,777777766666661111111 HHHHHHHMMMMMMMKKKKKKKFFFFFFF 1144 DDoollllaarr ddeeppoossiittss iinn bbaannkkss aabbrrooaadd,, rreeppoorrtteedd bbyy nnoonnbbaannkkiinngg bbuussiinneessss eenntteerrpprriisseess iinn tthhee UUnniitteedd SSttaatteess ........ 45,360 45,744 44,562 43,731 42,700 40,087 36,063r 40,363 43,271 n.a. 1. Data for banks' own claims are given on a monthly basis, but the data for subsidiaries of head office or 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. For U.S. banks, includes amounts due from own foreign branches and 4. Principally negotiable time certificates of deposit and bankers acceptances. foreign subsidiaries consolidated in "Consolidated Report of Condition" filed 5. Includes demand and time deposits and negotiable and nonnegotiable with bank regulatory agencies. For agencies, branches, and majority-owned certificates of deposit denominated in U.S. dollars issued by banks abroad. For subsidiaries of foreign banks, consists principally of amounts due from head office description of changes in data reported by nonbanks, see July 1979 Bulletin, or parent foreign bank, and foreign branches, agencies, or wholly owned 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 Maturity, by borrower and area 1987 1988 1989 Sept. 1 Total 235,130 233,184 238,123 213,853 207,035 199,171 By borrower 2 Maturity of one year or less — 163,997 172,634 178,346 166,634 165,773 158,146 3 Foreign public borrowers 25,889 26,562 23,916 21,707 19,310 21,205 4 All other foreigners 138,108 146,071 154,430 144,927 146,463 136,941 5 Maturity of more than one year2 71,133 60,550 59,776 47,218 41,262 41,025 6 Foreign public borrowers 38,625 35,291 36,014 26,354 22,406 22,435 7 All other foreigners 32,507 25,259 23,762 20,864 18,855 18,590 By area Maturity of one year or less2 8 Europe 59,027 55,909 53,913 51,202 49,157 49,593 9 Canada 5,680 6,282 5,910 5,499 5,439 5,909 10 Latin America and Caribbean 56,535 57,991 53,003 44,512 49,731 42,686 11 Asia 35,919 46,224 57,755 56,138 53,134 54,032 12 Africa 2,833 3,337 3,225 2,954 3,040 3,008 13 All other3 4,003 2,891 4,541 6,330 5,272 2,918 Maturity of more than one year2 14 Europe 6,696 4,666 4,121 4,424 3,869 4,329 15 Canada 2,661 1,922 2,353 3,033 3,291 3,387 16 Latin America and Caribbean 53,817 47,547 45,816 31,284 25,977 24,962 17 Asia 3,830 3,613 4,172 5,664 5,189 5,404 18 Africa 1,747 2,301 2,630 2,546 2,374 2,426 19 All other3 2,381 501 684 266 561 517 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
A62 International Statistics • January 1992 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1 Billions of dollars, end of period 1989 1990 1991 AArreeaa oorr ccoouunnttrryy 11998877 11998888 June Sept. Dec. Mar. June Sept. Dec. Mar. June 1 Total 382.4 346.3 340.0 346.5 338.8 333.9 321.7 332.1 317.8 324.6r 319.9* 2 G-10 countries and Switzerland 159.7 152.7 145.1 146.4 152.9 146.6 139.3 144.3 132.1 129.6 130.0* 3 Belgium-Luxembourg 10.0 9.0 7.8 6.9 6.3 6.7 6.2 6.5 5.9 6.2 6.1 4 France 13.7 10.5 10.8 11.1 11.7 10.4 10.2 11.1 10.4 9.7 10.5 5 Germany 12.6 10.3 10.6 10.4 10.5 11.2 11.2 11.1 10.6 8.8 8.3* 6 Italy 7.5 6.8 6.1 6.8 7.4 5.9 5.4 4.4 5.0 4.0 3.6 7 Netherlands 4.1 2.7 2.8 2.4 3.1 3.1 2.7 3.8 3.0 3.3 3.3 8 Sweden 2.1 1.8 1.8 2.0 2.0 2.1 2.3 2.3 2.2 2.0 2.4 9 Switzerland 5.6 5.4 5.4 6.1 7.1 6.2 6.3 5.6 4.4 3.7 3.3 10 United Kingdom 68.8 66.2 64.5 63.7 67.2 64.0 59.9 62.5 60.8 62.0 59.8 11 Canada 5.5 5.0 5.1 5.9 5.4 4.8 5.1 5.1 5.9 6.7 8.2* 12 Japan 29.8 34.9 30.2 31.0 32.2 32.2 30.1 32.0 23.9 23.2 24.6 13 Other developed countries 26.4 21.0 21.2 21.0 20.7 23.0 22.4 23.1 22.6 23.1 21.1* 14 Austria 1.9 1.5 1.7 1.5 1.5 1.5 1.5 1.6 1.4 1.4 1.1 15 Denmark 1.7 1.1 1.4 1.1 1.1 1.2 1.1 1.1 1.1 .9 1.2 16 Finland 1.2 1.1 1.0 1.1 1.0 1.1 .9 .8 .7 1.0 .8 17 Greece 2.0 1.8 2.3 2.4 2.5 2.6 2.7 2.8 2.7 2.5 2.4 18 Norway 2.2 1.8 1.8 1.4 1.4 1.7 1.4 1.6 1.6 1.5 1.5 19 Portugal .6 .4 .6 .4 .4 .4 .8 .6 .6 .6 .6 20 Spain 8.0 6.2 6.2 6.9 7.1 8.2 7.8 8.4 8.3 9.0 7.0 21 Turkey 2.0 1.5 1.1 1.2 1.2 1.3 1.4 1.6 1.7 1.7 1.9 22 Other Western Europe 1.6 1.3 1.1 1.0 .7 1.0 1.1 .7 .9 .8 .9* 23 South Africa 2.9 2.4 2.1 2.1 2.0 2.0 1.9 1.9 1.8 1.8 1.8 24 Australia 2.4 1.8 1.9 2.1 1.6 2.1 1.8 2.0 1.8 1.9 2.0 25 OPEC countries2 17.4 16.6 16.1 16.2 17.1 15.5 15.3 14.4 12.8 17.1 14.0* 26 Ecuador 1.9 1.7 1.5 1.5 1.3 1.2 1.1 1.1 1.0 .9 .9 27 Venezuela 8.1 7.9 7.5 7.4 7.0 6.1 6.0 6.0 5.0 5.1 5.3* 28 Indonesia 1.9 1.7 1.9 2.0 2.0 2.1 2.0 2.3 2.7 2.8 2.6 29 Middle East countries 3.6 3.4 3.4 3.5 5.0 4.3 4.4 3.3 2.5 6.6 3.7 30 African countries 1.9 1.9 1.6 1.9 1.7 1.8 1.8 1.7 1.7 1.6 1.5 31 Non-OPEC developing countries 97.8 85.3 83.4 81.2 77.5 68.8 66.7 67.1 65.4 66.3 64.9 Latin America 32 Argentina 9.5 9.0 7.9 7.6 6.3 5.6 5.2 5.0 5.0 4.7 4.6 33 Brazil 24.7 22.4 22.1 20.9 19.0 17.5 16.7 15.4 14.4 13.9 11.6 34 Chile 6.9 5.6 5.2 4.9 4.6 4.3 3.7 3.6 3.5 3.6 3.6 35 Colombia 2.0 2.1 1.7 1.6 1.8 1.8 1.7 1.8 1.8 1.7 1.6 36 Mexico 23.5 18.8 17.7 17.2 17.7 12.8 12.6 12.8 13.0 13.7 14.3 37 Peru 1.1 .8 .6 .6 .6 .5 .5 .5 .5 .5 .5 38 Other Latin America 2.8 2.6 2.6 2.9 2.8 2.8 2.3 2.4 2.3 2.2 2.0 Asia China 39 Mainland .3 .3 .3 .3 .3 .3 .2 .2 .2 .4 .6 40 Taiwan 8.2 3.7 5.2 5.0 4.5 3.8 3.6 4.0 3.5 3.6 4.1 41 India 1.9 2.1 2.4 2.7 3.1 3.5 3.6 3.6 3.3 3.5 3.0 42 Israel 1.0 1.2 .8 .7 .7 .6 .7 .6 .5 .5 .5 43 Korea (South) 5.0 6.1 6.6 6.5 5.9 5.3 5.6 6.2 6.2 6.8 6.9 44 Malaysia 1.5 1.6 1.6 1.7 1.7 1.8 1.8 1.8 1.9 2.0 2.1 45 Philippines 5.2 4.5 4.4 4.0 4.1 3.7 3.9 3.9 3.8 3.7 3.7 46 Thailand .7 1.1 1.0 1.3 1.3 1.1 1.3 1.5 1.5 1.6 1.7 47 Other Asia3 .7 .9 .8 1.0 1.0 1.2 1.1 1.6 1.7 2.1 2.3 Africa 48 Egypt .6 .4 .6 .5 .4 .4 .5 .4 .4 .4 .4 49 Morocco .9 .9 .9 .8 .9 .9 .9 .9 .8 .8 .7 50 Zaire , .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 51 Other Africa3 1.3 1.1 1.1 1.0 1.0 .9 .8 .8 1.0 .8 .8 52 Eastern Europe 3.2 3.6 3.4 3.5 3.5 3.3 2.9 2.7 2.3 2.1 2.1 53 U.S.S.R .3 .7 .6 .8 .7 .8 .4 .4 .2 .3 .4 54 Yugoslavia 1.8 1.8 1.7 1.7 1.6 1.4 1.4 1.3 1.2 1.0 1.0 55 Other 1.1 1.1 1.1 1.1 1.3 1.2 1.1 1.1 .9 .8 .7 56 Offshore banking centers 54.5 44.2 43.2 49.2 36.6 43.1 40.3 42.2 42.5 49.6r 48.2* 57 Bahamas 17.3 11.0 11.0 11.4 5.5 9.2 8.5 8.9 2.8 8.3 6.8 58 Bermuda .6 .9 .7 1.3 1.7 1.2 2.5 4.5 4.4 4.4 4.2 59 Cayman Islands and other British West Indies 13.5 12.9 10.8 15.3 9.0 10.9 8.5 9.0 11.5 13.7r 14.9* 60 Netherlands Antilles 1.2 1.0 1.0 1.1 2.3 2.6 2.3 2.2 7.9 1.1 1.4 61 Panama 3.7 2.5 1.9 1.5 1.4 1.3 1.4 1.5 1.4 1.4 1.3 62 Lebanon .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 63 Hong Kong 11.2 9.6 10.4 10.7 9.7 9.8 10.0 8.7 7.7 11.5 12.3 64 Singapore 7.0 6.1 7.3 7.8 7.0 8.0 7.0 7.5 6.6 8.9 7.2 65 Others5 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 66 Miscellaneous and unallocated6 23.2 22.6 27.4 28.7 30.3 33.3 34.5 38.1 39.8 36.6 39.4 1. The banking offices covered by these data are the U.S. offices and foreign $150 million equivalent in total assets, the threshold now applicable to all branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks. reporting branches. Offices not covered include (1) U.S. agencies and branches of foreign banks, and 2. 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 3. Excludes Liberia. of U.S. offices in table 3.18 (excluding those held by agencies and branches of 4. Includes Canal Zone beginning December 1979. foreign banks and those constituting claims on own foreign branches). 5. Foreign branch claims only. Since June 1984, reported claims held by foreign branches have been reduced 6. Includes New Zealand, Liberia, and international and regional organizaby an increase in the reporting threshold for "shell" branches from $50 million to tions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Nonbank-Reported Data A63 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1990 1991 TTyyppee aanndd aarreeaa oorr ccoouunnttrryy 11998877 11998888 11998899 Mar. June Sept. Dec. Mar. June 1 Total 28,302 32,952 38,198 38,400 39,407 44,156 42,299 39,665 38,994 2 Payable in dollars 22,785 27,335 33,393 34,030 34,911 39,015 37,894 35,615 34,999 3 Payable in foreign currencies 5,517 5,617 4,805 4,371 4,496 5,140 4,405 4,049 3,995 By type 4 Financial liabilities 12,424 14,507 17,907 17,461 19,043 19,909 17,986 16,807 16,767 5 Payable in dollars 8,643 10,608 14,047 14,169 15,663 16,059 14,731 14,082 13,872 6 Payable in foreign currencies 3,781 3,900 3,860 3,292 3,380 3,850 3,255 2,725 2,895 7 Commercial liabilities 15,878 18,445 20,292 20,939 20,365 24,247 24,313 22,858 22,227 8 Trade payables 7,305 6,505 7,590 7,443 6,935 10,040 9,945 8,224 8,412 9 Advance receipts and other liabilities 8,573 11,940 12,701 13,496 13,430 14,206 14,368 14,634 13,815 10 Payable in dollars 14,142 16,727 19,346 19,861 19,248 22,956 23,163 21,533 21,128 11 Payable in foreign currencies 1,737 1,717 945 1,078 1,117 1,291 1,150 1,325 1,099 By area or country Financial liabilities 12 Europe 8,320 9,962 11,702 11,179 11,840 11,294 9,852 9,210 99,,224444 13 Belgium-Luxembourg 213 289 340 318 332 350 344 285 297 14 France 382 359 258 271 171 470 703 644 535 15 Germany 551 699 475 442 557 615 630 570 664 16 Netherlands 866 880 944 900 932 945 993 948 917 17 Switzerland 558 1,033 541 528 552 632 576 577 535 18 United Kingdom 5,557 6,533 8,846 8,388 8,851 7,651 5,995 5,548 5,706 19 Canada 360 388 610 352 306 309 223 272 287 20 Latin America and Caribbean 1,189 839 1,342 2,003 2,753 3,537 3,380 3,509 3,308 21 Bahamas 318 184 157 354 312 395 371 456 375 22 Bermuda 0 0 17 2 0 0 0 0 12 23 Brazil 25 0 0 0 0 0 0 0 0 24 British West Indies 778 645 709 1,166 1,899 2,524 2,388 2,483 2,319 25 Mexico 13 1 6 5 4 4 5 6 6 26 Venezuela 0 0 0 0 0 0 4 4 4 2,451 3,312 4,151 3,821 4,085 4,288 4,120 3,812 3,918 28 Japan 2,042 2,563 3,299 2,783 2,883 3,152 2,919 2,739 2,865 29 Middle East oil-exporting countries 8 3 2 3 5 4 5 1 4 30 Africa 4 2 2 3 3 2 2 2 9 31 Oil-exporting countries3 1 0 0 0 1 0 0 0 7 32 All other4 100 4 100 103 55 479 409 2 2 Commercial liabilities 5,516 7,319 8,944 9,203 8,559 9,831 10,232 9,605 88,,663377 34 Belgium-Luxembourg 132 158 175 232 291 245 275 261 248 35 France 426 455 877 888 1,049 1,263 1,197 1,209 1,183 36 Germany 909 1,699 1,392 1,176 990 1,051 1,269 1,380 1,038 37 Netherlands 423 587 697 687 606 699 837 715 744 38 Switzerland 559 417 641 604 628 729 761 656 579 39 United Kingdom 1,599 2,079 2,620 2,927 2,440 2,778 2,792 2,734 2,299 40 Canada 1,301 1,217 1,124 1,151 1,178 1,263 1,250 1,230 1,186 41 Latin America and Caribbean 864 1,090 1,187 1,310 1,285 1,559 1,616 1,544 1,587 18 49 41 37 22 18 12 21 11 168 286 308 516 412 371 538 494 504 44 Brazil 46 95 100 121 109 129 145 214 176 45 British West Indies 19 34 27 18 29 42 30 35 43 189 217 304 241 288 506 429 304 358 47 Venezuela 162 114 154 86 119 120 122 109 108 48 Asia 6,565 6,915 7,166 7,000 7,065 88,,886688 8,977 8,235 8,788 2,578 3,094 2,914 2,748 3,189 33,,228833 3,617 3,467 3,381 50 Middle East oil-exporting countries2,5 1,964 1,385 1,401 1,394 1,125 2,321 1,730 1,268 1,697 574 576 844 759 889 1,318 841 650 594 52 Oil-exporting countries 135 202 307 264 277 594 422 225 224 53 All other4 1,057 1,328 1,027 1,517 1,390 1,408 1,398 1,594 1,436 1. For a description of the changes in the International Statistics tables, see 3. Comprises Algeria, Gabon, Libya, and Nigeria. July 1979 Bulletin, p. 550. 4. Includes nonmonetary international and regional organizations. 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and 5. Revisions include a reclassification of transactions, which also affects the United Arab Emirates (Trucial States). totals for Asia and the grand totals. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A64 International Statistics • January 1992 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1990 1991 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998877 11998888 11998899 Mar. June Sept. Dec. Mar. June 1 Total 30,964 34,035 31,537 29,918 31,736 31,114 33,434 34,317 36,393r 2 Payable in dollars 28,502 31,654 29,204 27,764 29,407 28,719 31,013 32,093 34,415r 3 Payable in foreign currencies 2,462 2,381 2,334 2,154 2,329 2,395 2,421 2,223 1,978r By type 4 Financial claims 20,363 21,869 17,728 16,622 18,105 16,663 18,142 18,659 20,250r 5 Deposits 14,894 15,643 10,421 10,461 9,901 10,359 11,513 11,448 ll,197r 6 Payable in dollars 13,765 14,544 9,495 9,583 8,820 9,165 10,501 10,533 10,492 7 Payable in foreign currencies 1,128 1,099 927 878 1,082 1,193 1,012 915 706r 8 Other financial claims 5,470 6,226 7,307 6,161 8,204 6,304 6,629 7,211 9,052 9 Payable in dollars 4,656 5,450 6,553 5,471 7,470 5,652 5,762 6,495 8,383 10 Payable in foreign currencies 814 777 754 690 733 652 866 716 669 11 Commercial claims 10,600 12,166 13,809 13,296 13,631 14,450 15,292 15,658 16,144r 12 Trade receivables 9,535 11,091 12,191 11,691 11,924 12,674 13,415 13,595 13,945r 13 Advance payments and other claims 1,065 1,075 1,618 1,605 1,707 1,776 1,877 2,063 2,199r 14 Payable in dollars 10,081 11,660 13,156 12,710 13,117 13,901 14,749 15,066 15,541r 15 Payable in foreign currencies 519 505 653 586 514 549 543 593 603r By area or country Financial claims 16 Europe 9,531 10,279 7,046 6,982 9,634 8,004 7,994 9,587 10,874r 17 Belgium-Luxembourg 7 18 28 22 126 27 76 86 76 18 France 332 203 153 203 141 153 366 249 274 19 Germany 102 120 192 508 93 102 371 481 388 20 Netherlands 350 348 303 316 340 329 333 453 507 21 Switzerland 65 218 95 122 137 176 325 405 434 22 United Kingdom 8,467 9,039 6,030 5,589 8,571 6,991 6,276 7,590 8,944r 23 Canada 2,844 2,325 1,904 1,758 2,036 1,989 2,887 1,833 2,029 24 Latin America and Caribbean 7,012 8,160 7,590 6,984 5,490 5,642 5,757 5,961 5,765 25 Bahamas 1,994 1,846 1,461 1,662 992 977 1,261 1,714 1,056 26 Bermuda 7 19 7 4 3 4 3 6 4 27 Brazil 63 47 224 79 84 70 68 68 67 28 British West Indies 4,433 5,763 5,486 4,824 4,003 4,191 4,021 3,743 4,258 29 Mexico 172 151 94 152 164 158 177 179 161 30 Venezuela 19 21 20 21 20 23 25 28 29 31 Asia 879 844 852 806 843 800 1,240 934 1,234 32 Japan 605 574 461 459 486 472 902 607 874 33 Middle East oil-exporting countries2 8 5 8 7 6 9 8 11 9 34 Africa 65 106 140 67 62 49 37 62 64 35 Oil-exporting countries 7 10 12 11 8 7 0 3 1 36 All other4 33 155 195 25 41 179 226 281 285 Commercial claims 37 Europe 4,180 5,181 6,193 6,035 6,072 6,490 7,046 7,005 7,474r 38 Belgium-Luxembourg 178 189 242 220 209 188 211 221 220r 39 France 650 672 963 964 924 1,206 1,240 1,267 1,386r 40 Germany 562 669 696 699 670 638 803 859 95 lr 41 Netherlands 133 212 479 453 478 491 551 591 710 42 Switzerland 185 344 305 270 234 300 298 323 299r 43 United Kingdom 1,073 1,324 1,572 1,688 1,582 1,673 1,7% 1,645 l,832r 44 Canada 936 983 1,076 1,145 1,145 1,144 1,049 1,194 l,258r 45 Latin America and Caribbean 1,930 2,241 2,174 2,053 2,198 2,393 2,305 2,305 2,425r 46 Bahamas 19 36 57 22 17 25 14 15 23 47 Bermuda 170 230 323 243 284 340 246 232 245r 48 Brazil 226 299 293 228 232 251 320 308 288r 49 British West Indies 26 22 36 38 47 35 40 49 43 50 Mexico 368 461 507 521 575 649 636 657 708r 51 Venezuela 283 227 147 188 223 224 189 190 194 52 Asia 2,915 2,993 3,555 3,271 3,463 3,621 4,044 4,292 4,109" 53 Japan 1,158 946 1,197 1,072 1,0% 1,221 1,3% 1,749 1,580" 54 Middle East oil-exporting countries2 450 453 518 433 418 407 459 548 501r 55 Africa 401 435 419 419 387 371 486 390 427r 56 Oil-exporting countries 144 122 108 89 97 72 67 68 59 57 All other4 238 333 392 372 365 432 362 472 45 lr 1. For a description of the changes in the International Statistics tables, see 3. Comprises Algeria, Gabon, Libya, and Nigeria. July 1979 Bulletin, p. 550. 4. Includes nonmonetary international and regional organizations. 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Securities Holdings and Transactions A65 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1991 1991 Transaction and area or country 1989 1990 Jan.- Mar. Apr. May June Julyr Aug.' Sept.p Sept. U.S. corporate securities STOCKS 1 Foreign purchases 214,071 173,293 158,134 21,779 20,577 19,218 17,342 16,462 17,891 12,884 2 Foreign sales 204,129 188,419 145,733 19,447 17,440 15,886 16,107 15,304 16,192 13,659 3 Net purchases, or sales (-) 9,941 -15,126 12,401 2,332 3,137 3,332 1,234 1,158 1,699 -775 4 Foreign countries 10,175 -15,197 11,897 2,332 3,059 3,278 1,191 1,135 1,563 -885 5 Europe 476 -8,479 2,666 837 1,639 1,218 713 5 710 -602 6 France -708 -1,234 214 100 -45 83 170 -41 39 -95 7 Germany -830 -367 -160 0 13 24 45 -8 21 62 8 Netherlands 79 -397 -132 120 30 25 64 47 -209 38 9 Switzerland -3,277 -2,866 469 356 552 290 346 42 % -48 10 United Kingdom 3,683 -2,980 1,299 114 686 585 -149 -130 788 -536 11 Canada -881 886 2,604 288 111 712 383 159 439 16 12 Latin America and Caribbean 3,042 -1,330 2,280 -30 120 240 285 160 315 25 13 Middle East1 3,531 -2,435 -124 -30 -174 207 -460 272 67 -402 14 Other Asia 3,577 -3,477 3,921 1,223 1,236 829 96 110 -33 210 15 Japan 3,330 -2,891 1,291 -2 1,163 669 74 -15 -96 135 16 Africa 131 -63 112 16 0 21 9 6 4 -7 17 Other countries 299 -298 439 28 128 51 165 423 61 -125 18 Nonmonetary international and regional organizations -234 71 503 1 78 55 44 2233 113366 111100 BONDS2 19 Foreign purchases 120,550 118,764 107,922 14,764 10,291 14,323 12,242 9,929 14,697 14,349 20 Foreign sales 87,533 102,027 88,795 10,630 9,083 11,645 8,637 7,681 10,769 12,280 21 Net purchases, or sales (-) 33,017 16,737 19,127 4,134 1,207 2,678 3,605 2,248 3,928 2,069 22 Foreign countries 32,664 17,208 19,338 4,066 1,307 2,736 3,666 2,275 4,025 2,108 23 Europe 18,907 10,079 9,240 3,271 1,189 1,667 2,113 856 1,715 -149 24 France 372 373 694 392 34 86 2 15 -26 93 25 Germany -238 -377 917 238 114 400 -120 -1 106 156 26 Netherlands 850 172 224 20 84 21 45 -1 25 -18 27 Switzerland -511 284 958 318 -56 162 318 9 116 -52 28 United Kingdom 17,965 10,383 6,380 1,633 789 896 1,784 564 1,431 346 29 Canada 1,116 1,906 1,089 385 247 374 68 34 -40 -155 30 Latin America and Caribbean 3,686 4,291 1,877 351 188 -142 524 378 25 130 31 Middle East1 -182 76 1,437 -13 -25 20 160 430 449 350 32 Other Asia 9,025 1,104 5,844 54 -301 831 898 558 1,925 1,957 33 Japan 6,292 747 4,385 135 -240 544 685 285 1,733 1,149 34 Africa 56 96 20 7 8 10 -1 -1 4 -2 35 Other countries 57 -344 -170 10 3 -23 -96 20 -53 -23 36 Nonmonetary international and regional organizations 353 -471 -212 68 -100 -58 -62 -27 -97 -39 Foreign securities 37 Stocks, net purchases, or sales (-) -13,062 -9,205 -25,291 -3,421 -2,540 -3,312 -3,592 -3,155 -3,521 -2,165 38 Foreign purchases 109,850 122,641 84,040 11,108 7,942 8,558 9,973 10,172 9,586 9,906 39 Foreign sales 122,912 131,846 109,331 14,528 10,482 11,871 13,565 13,327 13,107 12,071 40 Bonds, net purchases, or sales (-) -5,493 -22,487 -11,180 -1,000 -254 -1,987 -1,547 -807 -2,168 -1,171 41 Foreign purchases 234,770 314,545 233,507 40,177 20,779 20,642 19,916 22,041 22,186 23,409 42 Foreign sales 240,263 337,032 244,686 41,176 21,033 22,629 21,462 22,848 24,354 24,580 43 Net purchases, or sales (-), of stocks and bonds -18,556 -31,692 -36,471 -4,420 -2,793 -5,299 -5,138 -3,962 -5,689 -3,336 44 Foreign countries -18,594 -29,019 -35,697 -2,969 -2,917 -4,770 -5,418 -4,476 -5,794 -3,516 45 Europe -17,663 -8,418 -20,489 -472 348 -1,918 -3,030 -5,035 -4,769 -2,670 46 Canada -3,730 -7,502 -6,697 3 -2,290 -943 -1,011 278 -1,009 -352 47 Latin America and Caribbean 426 -8,954 -192 123 8 -1,652 -26 130 108 454 48 2,532 -3,828 -8,768 -2,495 -987 -159 -1,172 105 -305 -1,185 49 Africa 93 -137 -127 2 10 4 -198 8 -7 2 50 Other countries -251 -180 575 -130 -4 -101 19 38 188 235 51 Nonmonetary international and regional organizations 38 -2,673 -773 -1,451 123 --552299 280 551144 110055 118800 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A66 International Statistics • January 1992 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1991 1991 Country or area 1989 1990 J S a e n p . t - . Mar. Apr. May June July Aug/ Sept." Transactions, net purchases or sales (-) during period1 1 Estimated total2 54,203 19,439 11,834 -14,958 2,826 15,421 -5,830 725r 1,356 -3,845 2 Foreign countries2 52,301 19,276 13,111 -14,139 2,583 15,404 -5,337 407r 722 -2,821 3 Europe2 36,286 19,040 2,049 -4,089 -1,358 4,519 -4,250 -1,082r 1,554 462 4 Belgium-Luxembourg 1,048 10 360 115 37 121 -102 -109 71 -182 5 Germany2 7,904 5,880 -5,629 -3,340 -549 1,433 -1,458 684 -360 195 6 Netherlands -1,141 1,077 -3,335 -607 -292 -61 -794 —997r -372 -426 7 Sweden 693 1,152 -1,216 -244 -410 560 31 -299 -239 3 8 Switzerland2 1,098 112 483 470 -622 230 207 -218 292 -184 9 United Kingdom 20,198 -1,414 3,960 513 260 1,699 -1,249 -398 388 -32 10 Other Western Europe 6,508 12,202 7,410 -9% 214 540 -886 258 1,774 1,080 11 Eastern Europe -21 13 16 0 5 -3 3 -3 0 8 12 Canada 698 -4,617 364 182 566 342 -114 395 -118 78 13 Latin America and Caribbean 464 14,730 16,399 292 5,561 10,481 161 1,669 1,436 -1,071 14 Venezuela 311 33 -139 6 2 2 20 7 -20 -2 15 Other Latin America and Caribbean -322 3,939 6,927 931 2,969 5,687 -233 242 -2,010 -1,878 16 Netherlands Antilles 475 10,757 9,611 -645 2,590 4,793 374 1,420 3,466 809 17 13,297 -11,031 -5,173 -9,985 -2,179 12 -879 -491 -2,115 -2,072 18 Japan 1,681 -14,864 -8,047 -7,016 -3,379 711 1,422 45 -364 -3,625 19 Africa 116 313 338 0 16 1 104 7 27 -5 20 All other 1,439 842 -867 -540 -22 48 -358 -91 -62 -213 21 Nonmonetary international and regional organizations 1,902 163 -1,277 -819 243 17 -493 318 634 -1,024 22 International 1,473 287 -1,627 -845 35 42 -21 168 654 -1,211 23 Latin American regional 231 -2 145 5 225 -186 -9 150 -146 152 MEMO 24 Foreign countries 52,301 19,276 13,111 -14,139 2,583 15,404 -5,337 407r 722 -2,821 25 Official institutions 26,840 23,218 -5,455 -12,000 886 2,020 -5,832 -704 -289 748 26 Other foreign2 25,461 -3,942 18,565 -2,139 1,698 13,383 495 l,lllr 1,011 -3,569 Oil-exporting countries 27 Middle East3 8,148 -387 -7,068 -1,486 -513 -562 -505 -643 -3,731 -795 28 Africa4 -1 0 -15 -6 5 0 0 0 0 -35 1. Estimated official and private transactions in marketable U.S. Treasury 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and securities having an original maturity of more than one 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
Interest and Exchange Rates A67 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per year Rate on Nov. 30, 1991 Rate on Nov. 30, 1991 Rate on Nov. 30, 1991 Country Country Country Percent e M ffe o c n t t i h v e e M ffe o c n t t i h v e Percent e M ffe o c n t t i h v e Austria.. 7.5 Aug. 1991 Germany, Fed. Rep. of, 7.5 Aug. 1991 Norway 10.50 July 1990 Belgium . 8.0 Aug. 1991 Italy 12.0 Nov. 1991 Switzerland 7.0 Aug. 1991 Canada.. 7.66 Nov. 1991 Japan 5.0 Nov. 1991 United Kingdom2 Denmark 9.0 May 1991 Netherlands 8.0 Aug. 1991 France .. 9.25 Nov. 1991 1. Since Feb. 1981, the rate has been that at which the Bank of France or makes advances against eligible commercial paper or government securities for discounts Treasury bills for seven to ten days. commercial 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 TTyyppee oorr ccoouunnttrryy 11998888 11998899 11999900 May June July Aug. Sept. Oct. Nov. 1 Eurodollars 7.85 9.16 8.16 5.94 6.08 6.01 5.65 5.50 5.34 4.96 2 United Kingdom 10.28 13.87 14.73 11.48 11.21 11.04 10.85 10.24 10.38 10.44 3 Canada 9.63 12.20 13.00 9.12 8.83 8.78 8.73 8.59 8.29 7.75 4 Germany 4.28 7.04 8.41 8.98 8.95 9.06 9.23 9.16 9.28 9.33 5 Switzerland 2.94 6.83 8.71 8.10 7.89 7.74 7.80 7.90 8.09 7.89 6 Netherlands 4.72 7.28 8.57 9.05 9.08 9.09 9.27 9.21 9.27 9.32 7 France 7.80 9.27 10.20 9.13 9.59 9.46 9.46 9.30 9.20 9.41 8 Italy 11.04 12.44 12.11 11.46 11.48 11.74 11.86 11.63 11.44 11.66 9 Belgium 6.69 8.65 9.70 9.00 9.08 9.12 9.25 9.01 9.22 9.39 10 Japan 4.43 5.39 7.75 7.82 7.79 7.56 7.31 6.70 6.41 6.22 NOTE. Rates are for three-month interbank loans, with the following exceptions: 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
A68 International Statistics • January 1992 3.28 FOREIGN EXCHANGE RATES1 Currency units per dollar 1991 CCoouunnttrryy//ccuurrrreennccyy 11998888 11998899 11999900 June July Aug. Sept. Oct. Nov. 1 Australia/dollar^ 78.409 79.186 78.069 75.982 77.156 78.235 79.369 79.251 78.660 2 Austria/schilling 12.357 13.236 11.331 12.538 12.562 12.267 11.910 11.887 11.408 Belgium/franc 36.785 39.409 33.424 36.689 36.751 35.890 34.878 34.787 33.391 4 Canada/dollar 1.2306 1.1842 1.1668 1.1439 1.1493 1.1452 1.1370 1.1279 1.1302 5 China, P.R./yuan 3.7314 3.7673 4.7921 5.3667 5.3693 5.3725 5.3869 5.3917 5.3994 6 Denmark/krone 6.7412 7.3210 6.1899 6.8634 6.9030 6.7396 6.5367 6.5246 6.2947 7 Finland/markka 4.1933 4.2963 3.8300 4.2189 4.3295 4.2325 4.1241 4.1155 4.1953 8 France/franc 5.9595 6.3802 5.4467 6.0483 6.0596 5.9244 5.7621 5.7583 5.5391 9 Germany/deutsche mark 1.7570 1.8808 1.6166 1.7828 1.7852 1.7435 1.6933 1.6893 1.6208 10 Greece/drachma 142.00 162.60 158.59 195.03 195.46 192.69 188.07 188.50 183.68 11 Hong Kong/dollar 7.8072 7.8008 7.7899 7.7341 7.7610 7.7646 7.7524 7.7542 7.7591 1? India/rupee 13.900 16.213 17.492 21.062 25.613 25.846 25.834 25.797 25.802 N Ireland/pound 152.49 141.80 165.76 142.66 136.48 153.38 157.87 158.21 164.75 14 Italy/lira 1,302.39 1,372.28 1,198.27 1,325.09 1,329.55 1,303.31 1,266.25 1,263.20 1,221.04 15 Japan/yen 128.17 138.07 145.00 139.75 137.83 136.82 134.30 130.77 129.63 16 Malaysia/ringgit 2.6190 2.7079 2.7057 2.7810 2.7868 2.7806 2.7577 2.7469 2.7412 17 Netherlands/guilder 1.9778 2.1219 1.8215 2.0085 2.0114 1.9650 1.9084 1.9039 1.8269 18 New Zealand/dollar 65.560 59.561 59.619 57.645 56.681 57.353 57.989 56.306 56.352 19 Norway/krone 6.5243 6.9131 6.2541 6.9542 6.9627 6.8118 6.6266 6.6136 9.3643 20 Portugal/escudo 144.27 157.53 142.70 156.37 154.20 149.72 145.64 145.41 141.43 71 Singapore/dollar 2.0133 1.9511 1.8134 1.7782 1.7555 1.7269 1.7002 1.6940 1.6709 22 South Africa/rand 2.2770 2.6214 2.5885 2.8625 2.8819 2.8704 2.8316 2.8314 2.7916 23 South Korea/won 734.52 674.29 710.64 727.97 731.76 733.90 744.18 753.54 757.44 24 Spain/peseta 116.53 118.44 101.96 111.18 111.81 108.92 106.28 106.54 102.56 75 Sri Lanka/rupee 31.820 35.947 40.078 41.211 41.213 41.723 41.935 42.179 42.374 76 Sweden/krona 6.1370 6.4559 5.9231 6.4235 6.4609 6.3311 6.1652 6.1552 5.9246 77 Switzerland/franc 1.4643 1.6369 1.3901 1.5297 1.5481 1.5201 1.4803 1.4781 1.4348 78 Taiwan/dollar 28.636 26.407 26.918 27.166 26.982 26.730 26.559 26.406 25.975 79 Thailand/baht 25.312 25.725 25.609 25.766 25.745 25.720 25.617 25.397 25.497 30 United Kingdom/pound 178.13 163.82 178.41 164.97 165.13 168.41 172.65 172.31 177.96 MEMO 31 United States/dollar3 92.72 98.60 89.09 95.18 95.19 93.47 91.18 90.69 87.98 1. Averages of certified noon buying rates in New York for cable transfers. currencies of ten industrial countries. The weight for each of the ten countries is Data in this table also appear in the Board's G.5 (405) monthly statistical the 1972-76 average world trade of that country divided by the average world release. For ordering address, see inside front cover. trade of all ten countries combined. Series revised as of August 1978 (see Federal 2. Value in U.S. cents. Reserve 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
A69 Guide to Statistical Releases and Special Tables STATISTICAL RELEASES—List Published Semiannually, with Latest BULLETIN Reference Issue Page Anticipated schedule of release dates for periodic releases December 1991 A86 SPECIAL TABLES—Quarterly Data Published Irregularly, with Latest BULLETIN Reference Title and Date Issue Page Assets and liabilities of commercial banks September 30,1990 March 1991 A72 December 31,1990 May 1991 A72 March 31, 1991 August 1991 A72 June 30, 1991 November 1991 A70 Terms of lending at commercial banks November 1990 April 1991 A73 February 1991 August 1991 A78 May 1991 October 1991 A72 August 1991 December 1991 A70 Assets and liabilities of U.S. branches and agencies of foreign banks September 30,1990 February 1991 A78 December 31,1990 June 1991 A72 March 31,1991 November 1991 A76 June 30, 1991 December 1991 A74 Pro forma balance sheet and income statements for priced service operations June 30, 1990 October 1990 A72 March 31,1991 August 1991 A82 June 30,1991 November 1991 A80 September 30, 1991 January 1992 A70 Assets and liabilities of life insurance companies June 30, 1991 December 1991 A79 Special table follows. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A70 Special Tables • January 1992 4.31 Pro forma balance sheet for priced services of the Federal Reserve System1 Millions of dollars Item September 30, 1990 Short-term assets Imputed reserve requirement on clearing balances 387.2 226.7 Investment in marketable securities 2,839.8 1,662.3 Receivables 57.5 54.9 Materials and supplies 6.1 6.4 Prepaid expenses 27.2 26.9 Items in process of collection 2,677.3 3,027.7 Total short-term assets 5,995.1 5,004.8 Long-term assets3 Premises 348.3 310.2 Furniture and equipment 160.2 133.2 Leases and leasehold improvements 20.4 18.7 Prepaid pension costs 87.9 66.4 Total long-term assets 616.9 528.4 Total assets 6,612.0 5,533.3 Short-term liabilities Clearing balances and balances arising from early credit of uncollected items 3,628.8 2,459.2 Deferred availability items 2,275.5 2,457.5 Short-term debt 90.8 88.2 Total short-term liabilities 5,995.1 5,004.8 Long-term liabilities Obligations under capital leases 1.2 1.2 Long-term debt 167.8 146.6 Total long-term liabilities 169.0 147.8 Total liabilities , 6,164.2 5,152.6 Equity 447.9 380.7 Total liabilities and equity4 6,612.0 5,533.3 1. Details may not sum to totals because of rounding. collected for government agencies; and items associated with providing fixed 2. The imputed reserve requirement on clearing balances and investment in availability or credit prior to receipt and processing of items. The cost base for marketable securities reflect the Federal Reserve's treatment of clearing balances providing services that must be recovered under the Monetary Control Act maintained on deposit with Reserve Banks by depository institutions. For includes the cost of float (the difference between the value of gross CIPC and the presentation of the balance sheet and the income statement, clearing balances are value of deferred availability items) incurred by the Federal Reserve during the reported in a manner comparable to the way correspondent banks report period, valued at the federal funds rate. The amount of float, or net CIPC, compensating balances held with them by respondent institutions. That is, represents the portion of gross CIPC that involves a financing cost. respondent balances held with a correspondent are subject to a reserve require- 3. Long-term assets on the balance sheet have been allocated to priced services ment established by the Federal Reserve. This reserve requirement must be with the direct determination method, which uses the Federal Reserve's Planning satisfied with either vault cash or with nonearning balances maintained at a and Control System (PACS) to ascertain directly the value of assets used solely in Reserve Bank. Following this model, clearing balances maintained with Reserve priced services operations and to apportion the value of jointly used assets Banks for priced service purposes are subjected to imputed reserve requirements. between priced services and nonpriced services. Also, long-term assets include an Therefore, a portion of the clearing balances held with the Federal Reserve is estimate of the assets of the Board of Governors directly involved in the classified on the asset side of the balance sheet as required reserves and is development of priced services. reflected in a manner similar to vault cash and due from bank balances normally Long-term assets include amounts for capital leases and leasehold improveshown on a correspondent bank's balance sheet. The remainder of clearing ments and for prepaid pension costs associated with priced services. Effective balances is assumed to be available for investment. For these purposes, the January 1, 1987, the Federal Reserve Banks implemented Financial Accounting Federal Reserve assumes that all such balances are invested in three-month Standards Board Statement No. 87, Employer's Accounting for Pensions. Treasury bills. 4. A matched-book capital structure has been used for those assets that are not The account "items in the process of collection" (CIPC) represents the gross "self-financing" in determining liability and equity amounts. Short-term assets amount of Federal Reserve CIPC as of the balance sheet date, stated on a basis are financed with short-term debt. Long-term assets are financed with long-term comparable with a commercial bank. Adjustments have been made for intra- debt and equity in a proportion equal to the ratio of long-term debt to equity for System items that would otherwise be double-counted on a consolidated Federal the bank holding companies used in the model for the private sector adjustment Reserve balance sheet; items associated with nonpriced items, such as items factor (PSAF). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Bank Reported Data All 4.32 Pro forma income statement for priced services of the Federal Reserve System1 Millions of dollars Quarters ending September 30 IItteemm 1991 1990 Income services provided to depository institutions2 184.8 180.2 Production expenses3 149.3 141.1 Income from operations 35.5 39.1 Imputed costs4 Interest on float 3.9 7.5 Interest on debt 4.8 4.2 Sales taxes 2.2 2.2 FDIC insurance 2.8 13.7 1.2 15.1 Income from operations after imputed costs 21.8 24.0 Other income and expenses5 Investment income 46.2 38.5 Earnings credits 44.9 1.2 36.1 2.4 Income before income taxes 23.0 26.5 Imputed income taxes6 7.0 7.4 Net income 16.0 19.1 MEMO Targeted return on equity6 8.1 8.4 Nine months ending September 30 1991 1990 Income services provided to depository institutions2 550.2 544.8 Production expenses3 451.5 433.2 Income from operations 98.8 111.5 Imputed costs4 Interest on float 13.1 22.5 Interest on debt 14.4 12.6 Sales taxes 7.1 6.2 FDIC insurance 7.2 41.8 3.8 45.0 Income from operations after imputed costs 57.0 66.5 Other income and expenses5 Investment income 131.6 116.7 Earnings credits 119.8 11.8 104.9 11.8 Income before income taxes 68.7 78.4 Imputed income taxes6 21.0 21.8 Net income 47.8 56.6 MEMO Targeted return on equity6 24.3 25.2 1. The income statement reflects income and expenses for priced services. Float recovered through per-item fees is valued at the federal funds rate and has Included in these amounts are the imputed costs of float, imputed financing costs, been added to the cost base subject to recovery in the third quarter of 1991. and the income related to clearing balances. Total float 426.3 Details may not add to totals because of rounding. Unrecovered float 6.4 2. Income represents charges to depository institutions for priced services. Float subject to recovery 419.9 This income is realized through one of two methods: direct charges to an Sources of float recovery institution's account or charges against accumulated earnings credits. Income Income on clearing balances 49.8 includes charges for per-item fees, fixed fees, package fees, explicitly priced float, As of adjustments 150.1 account maintenance fees, shipping and insurance fees, and surcharges. Direct charges 158.4 3. Production expenses include direct, indirect, and other general administra- Per-item fees 61.6 tive expenses of the Federal Reserve Banks for providing priced services. Also Also included in imputed costs is the interest on debt assumed necessary to included are the expenses of staff members of the Board of Governors working finance priced-service assets and the sales taxes and FDIC insurance assessment directly on the development of priced services, which amounted to $0.5 million that the Federal Reserve would have paid had it been a private-sector firm. and $0.4 million in the third quarter for 1991 and 1990, respectively and $1.5 and Because of a change in the methodology for imputing PSAF costs approved in $1.3 million in the first nine months for 1991 and 1990, respectively. 1989, FDIC insurance is now calculated on the basis of actual clearing balances 4. Imputed float costs represent the value of float to be recovered, either and credits that are deferred to depository institutions. Previously, the assessment explicitly or through per-item fees, during the period. Float costs include those for was calculated on the basis of available funds. checks, book-entry securities, noncash collection, ACH, and wire transfers. 5. Other income and expenses consist of income on clearing balances and the The following table depicts the daily average recovery of float by the Federal cost of earnings credits granted to depository institutions on their clearing Reserve Banks for the third quarter of 1991. In the table, unrecovered float balances. Income on clearing balances represents the average coupon-equivalent includes that generated by services to government agencies or by other central yield on three-month Treasury bills applied to the total clearing balance mainbank services. tained, adjusted for the effect of reserve requirements on clearing balances. Float recovered through income on clearing balances represents increased Expenses for earnings credits are derived by applying the average federal funds investable clearing balances as a result of reducing imputed reserve requirements rate to the required portion of the clearing balances, adjusted for the net effect of through the use of a deduction for float for cash items in process of collection reserve requirements on clearing balances. when calculating the reserve requirement. This income then reduces the float 6. Imputed income taxes are calculated at the effective tax rate derived from a required to be recovered through other means. model consisting of the 50 largest bank holding companies. The targeted return on As-of adjustments and direct charges refer to midweek closing float and equity represents the after-tax rate of return on equity that the Federal Reserve interterritory check float, which may be recovered from depositing institutions would have earned had it been a private business firm, based on the bank holding Digitized for FRthrAoSugEh Rad justments to the institution's reserve or clearing balance or by valuing company model. http://fraser.stltoheu ifslofaet dat. othreg /f ederal funds rate and billing the institution directly. Federal Reserve Bank of St. Louis
A72 Index to Statistical Tables References are to pages A3-A71 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Demand deposits—Continued Agricultural loans, commercial banks, 20,21 Ownership by individuals, partnerships, and corporations, 22 Assets and liabilities (See also Foreigners) Turnover, 16 Banks, by classes, 19-21 Depository institutions Domestic finance companies, 34 Reserve requirements, 9 Federal Reserve Banks, 11 Reserves and related items, 4, 5, 6,13 Financial institutions, 26 Deposits (See also specific types) Foreign banks, U.S. branches and agencies, 22 Banks, by classes, 4, 19-21,22 Automobiles Federal Reserve Banks, 5,11 Consumer installment credit, 37, 38 Turnover, 16 Production, 47, 48 Discount rates at Reserve Banks and at foreign central banks and foreign countries (See Interest rates) Discounts and advances by Reserve Banks (See Loans) BANKERS acceptances, 10, 23,24 Dividends, corporate, 33 Bankers balances, 19-21. (See also Foreigners) Bonds (See also U.S. government securities) New issues, 33 EMPLOYMENT, 45 Rates, 24 Eurodollars, 24 Branch banks, 22, 55 Business activity, nonfinancial, 44 FARM mortgage loans, 36 Business expenditures on new plant and equipment, 33 Federal agency obligations, 5,10, 11, 12, 29, 30 Business loans (See Commercial and industrial loans) Federal credit agencies, 31 Federal finance Debt subject to statutory limitation, and types and ownership CAPACITY utilization, 46 Capital accounts of gross debt, 28 Banks, by classes, 19 Receipts and outlays, 26, 27 Federal Reserve Banks, 11 Treasury financing of surplus, or deficit, 26 Central banks, discount rates, 67 Treasury operating balance, 26 Certificates of deposit, 24 Federal Financing Bank, 26, 31 Commercial and industrial loans Federal funds, 7, 18, 20, 21, 22,24, 26 Commercial banks, 17, 20 Federal Home Loan Banks, 31 Weekly reporting banks, 20-22 Federal Home Loan Mortgage Corporation, 31,35, 36 Commercial banks Federal Housing Administration, 31, 35, 36 Assets and liabilities, 19-21 Federal Land Banks, 36 Commercial and industrial loans, 17, 19,20, 21, 22 Federal National Mortgage Association, 31, 35, 36 Consumer loans held, by type and terms, 37, 38 Federal Reserve Banks Loans sold outright, 20 Condition statement, 11 Nondeposit funds, 18 Discount rates (See Interest rates) Real estate mortgages held, by holder and property, 36 U.S. government securities held, 5, 11,12,28 Time and savings deposits, 4 Federal Reserve credit, 5,6, 11, 12 Commercial paper, 23, 24, 34 Federal Reserve notes, 11 Condition statements (See Assets and liabilities) Federal Reserve System Construction, 44, 49 Balance sheet for priced services, 70 Consumer installment credit, 37, 38 Condition statement for priced services, 71 Consumer prices, 44, 46 Federally sponsored credit agencies, 31 Consumption expenditures, 52, 53 Finance companies Corporations Assets and liabilities, 34 Nonfinancial, assets and liabilities, 33 Business credit, 34 Profits and their distribution, 33 Loans, 37, 38 Security issues, 32, 65 Paper, 23, 24 Cost of living (See Consumer prices) Financial institutions Credit unions, 37 Loans to, 20,21,22 Currency and coin, 19 Selected assets and liabilities, 26 Currency in circulation, 5, 14 Float, 51 Customer credit, stock market, 25 Flow of funds, 39,41,42,43 Foreign banks, assets and liabilities of U.S. branches and agencies, 21, 22 DEBITS to deposit accounts, 16 Foreign currency operations, 11 Debt (See specific types of debt or securities) Foreign deposits in U.S. banks, 5,11, 20, 21 Demand deposits Foreign exchange rates, 68 Banks, by classes, 19-22 Foreign trade, 54 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A73 Foreigners REAL estate loans Claims on, 55, 57, 60, 61, 62, 64 Banks, by classes, 17, 20,21, 36 Liabilities to, 21, 54, 55, 57, 58, 63, 65, 66 Financial institutions, 26 Terms, yields, and activity, 35 GOLD Type of holder and property mortgaged, 36 Certificate account, 11 Repurchase agreements, 7, 18, 20, 21, 22 Stock, 5, 54 Reserve requirements, 9 Government National Mortgage Association, 31, 35, 36 Reserves Gross national product, 51 Commercial banks, 19 Depository institutions, 4, 5, 6, 13 HOUSING, new and existing units, 49 Federal Reserve Banks, 11 U.S. reserve assets, 54 INCOME and expenses, Federal Reserve System, 70-71 Residential mortgage loans, 35 Income, personal and national, 44, 51, 52 Retail credit and retail sales, 37, 38, 44 Industrial production, 44,47 Installment loans, 37, 38 Insurance companies, 28, 36 SAVING Interest rates Flow of funds, 39,41,42,43 Bonds, 24 National income accounts, 51 Savings and loan associations, 36, 37, 39. (See also SAIF-insured Consumer installment credit, 38 institutions) Federal Reserve Banks, 8 Foreign central banks and foreign countries, 67 Savings Association Insurance Funds (SAIF) insured institutions, 26 Money and capital markets, 24 Savings banks, 26, 36, 37 Mortgages, 35 Savings deposits (See Time and savings deposits) Prime rate, 23 Securities (See also specific types) International capital transactions of United States, 53-67 Federal and federally sponsored credit agencies, 31 International organizations, 57, 58, 60, 63, 64 Foreign transactions, 65 Inventories, 51 New issues, 32 Prices, 25 Investment companies, issues and assets, 33 Special drawing rights, 5, 11, 53, 54 Investments (See also specific types) State and local governments Banks, by classes, 19,20,21,22,26 Deposits, 20, 21 Commercial banks, 4, 17,19-21, 36 Federal Reserve Banks, 11,12 Holdings of U.S. government securities, 28 Financial institutions, 36 New security issues, 32 Ownership of securities issued by, 20, 21 LABOR force, 45 Rates on securities, 24 Life insurance companies (See Insurance companies) Stock market, selected statistics, 25 Loans (See also specific types) Stocks (See also Securities) Banks, by classes, 19-21 New issues, 32 Commercial banks, 4, 17, 19-21 Prices, 25 Federal Reserve Banks, 5, 6, 8,11,12 Student Loan Marketing Association, 31 Federal Reserve System, 70-71 Financial institutions, 26, 36 Insured or guaranteed by United States, 35, 36 TAX receipts, federal, 27 Thrift institutions, 4. (See also Credit unions and Savings and MANUFACTURING loan associations) Capacity utilization, 46 Time and savings deposits, 4, 14, 18, 19, 20, 21, 22 Production, 46, 48 Trade, foreign, 54 Margin requirements, 25 Treasury cash, Treasury currency, 5 Member banks (See also Depository institutions) Treasury deposits, 5, 11, 26 Federal funds and repurchase agreements, 7 Treasury operating balance, 26 Reserve requirements, 9 UNEMPLOYMENT, 45 Mining production, 48 U.S. government balances Mobile homes shipped, 49 Commercial bank holdings, 19, 20, 21 Monetary and credit aggregates, 4, 13 Treasury deposits at Reserve Banks, 5, 11, 26 Money and capital market rates, 24 U.S. government securities Money stock measures and components, 4, 14 Bank holdings, 19-21, 22, 28 Mortgages (See Real estate loans) Dealer transactions, positions, and financing, 30 Mutual funds, 33 Federal Reserve Bank holdings, 5, 11, 12, 28 Mutual savings banks (See Thrift institutions) Foreign and international holdings and transactions, 11, 28, 66 NATIONAL defense outlays, 27 Open market transactions, 10 National income, 51 Outstanding, by type and holder, 26, 28 Rates, 23 OPEN market transactions, 10 U.S. international transactions, 53-67 PERSONAL income, 52 Utilities, production, 48 Prices Consumer and producer, 44, 50 VETERANS Administration, 35, 36 Stock market, 25 Prime rate, 23 WEEKLY reporting banks, 20-22 Producer prices, 44, 50 Wholesale (producer) prices, 44, 50 Production, 44,47 Profits, corporate, 33 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A74 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 DALE W. HENDERSON, Associate Director BOB STAHLY MOORE, Special Assistant to the Board DAVID H. HOWARD, Senior Adviser DIANE E. WERNEKE, Special Assistant to the Board DONALD B. ADAMS, 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 WILLIAM R. JONES, Associate Director MARYELLEN A. BROWN, Assistant to the General Counsel THOMAS D. SIMPSON, Associate Director LAWRENCE SLIFMAN, Associate Director OFFICE OF THE SECRETARY DAVID J. STOCKTON, Associate Director 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 RICHARD C. STEVENS, Assistant Secretary1 PATRICK M. PARKINSON, Assistant Director MARTHA S. SCANLON, Assistant Director DIVISION OF CONSUMER JOYCE K. ZICKLER, Assistant Director LEVON H. GARABEDIAN, Assistant Director AND COMMUNITY AFFAIRS (Administration) GRIFFITH L. GARWOOD, Director GLENN E. LONEY, Assistant Director DIVISION OF MONETARY AFFAIRS ELLEN MALAND, Assistant Director DONALD L. KOHN, Director DOLORES S. SMITH, Assistant Director DAVID E. LINDSEY, Deputy Director DIVISION OF BANKING BRIAN F. MADIGAN, Assistant Director RICHARD D. PORTER, Assistant Director SUPERVISION AND REGULATION NORMAND R.V. BERNARD, Special Assistant to the Board RICHARD SPILLENKOTHEN, Director STEPHEN C. SCHEMERING, Deputy Director OFFICE OF THE INSPECTOR GENERAL DON E. KLINE, Associate Director BRENT L. BOWEN, Inspector General WILLIAM A. RYBACK, Associate Director BARRY R. SNYDER, Assistant Inspector General FREDERICK M. STRUBLE, Associate Director HERBERT A. BIERN, 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 Information Resources Management. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A75 JOHN P. LAWARE SUSAN M. PHILLIPS LAWRENCE B. LINDSEY 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 JEFFREY C. MARQUARDT, Assistant Director DAVID L. SHANNON, Director JOHN H. PARRISH, Assistant Director JOHN R, WEIS, Associate Director LOUISE L. ROSEMAN, Assistant Director ANTHONY V. DIGIOIA, Assistant Director FLORENCE M. YOUNG, Assistant Director JOSEPH H. HAYES, JR. , 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 DIVISION OF INFORMATION RESOURCES MANAGEMENT STEPHEN R. MALPHRUS, Director BRUCE M. BEARDSLEY, Deputy Director ROBERT J. ZEMEL, Senior Adviser MARIANNE M. EMERSON, Assistant Director Po KYUNG KIM, Assistant Director RAYMOND H. MASSEY, Assistant Director EDWARD T. MULRENIN, Assistant Director DAY W. RADEBAUGH, JR. , Assistant Director ELIZABETH B. RIGGS, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A76 Federal Reserve Bulletin • January 1992 Federal Open Market Committee and Advisory Councils FEDERAL OPEN MARKET COMMITTEE MEMBERS ALAN GREENSPAN, Chairman E. GERALD CORRIGAN, Vice Chairman WAYNE D. ANGELL JOHN P. LAWARE DAVID W. MULLINS, JR. THOMAS H. HOENIG LAWRENCE B. LINDSEY SUSAN M. PHILLIPS EDWARD W. KELLEY, JR. THOMAS C. MELZER RICHARD F. SYRON ALTERNATE MEMBERS EDWARD G. BOEHNE ROBERT D. MCTEER, JR. JAMES H. OLTMAN GARYH. STERN 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 VACANCY, Manager for Foreign Operations, System Open Market Account FEDERAL ADVISORY COUNCIL PAUL HAZEN, President LLOYD P. JOHNSON, Vice President IRA STEPANIAN, First District B. KENNETH WEST, Seventh District CHARLES S. SANFORD, JR., Second District DAN W. MITCHELL, Eighth District TERRENCE A. LARSEN, Third District LLOYD P. JOHNSON, Ninth District JOHN B. MCCOY, Fourth District JORDAN L. HAINES, Tenth District EDWARD E. CRUTCHFEELD, 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
All CONSUMER ADVISORY COUNCIL COLLEEN D. HERNANDEZ, Kansas City, Missouri, Chairman DENNY D. DUMLER, Denver, Colorado, Vice Chairman VERONICA E. BARELA, Denver, Colorado JULIA E. HILER, Marietta, Georgia TOYE L. BROWN, Boston, Massachusetts HENRY JARAMILLO, Belen, New Mexico GEORGE C. GALSTER, Wooster, Ohio KATHLEEN E. KEEST, Boston, Massachusetts E. THOMAS GARMAN, Blacksburg, Virginia BERNARD F. PARKER, JR. , Detroit, Michigan DONALD A. GLAS, Hutchinson, Minnesota OTIS PITTS, JR., Miami, Florida DEBORAH B. GOLDBERG, Washington, D.C. NANCY HARVEY STEORTS, Dallas, Texas MICHAEL M. GREENFIELD, St. Louis, Missouri SANDRA L. WILLETT, Boston, Massachusetts JOYCE HARRIS, Madison, Wisconsin 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
A78 Federal Reserve Board Publications For ordering assistance, write PUBLICATIONS SERVICES, Monetary Policy and Reserve Requirements Handbook. MS-138, Board of Governors of the Federal Reserve System, $75.00 per year. Washington, D.C. 20551 or telephone (202) 452-3244 or FAX Securities Credit Transactions Handbook. $75.00 per year. (202) 728-5886. When a charge is indicated, payment should The Payment System Handbook. $75.00 per year. accompany request and be made payable to the Board of Federal Reserve Regulatory Service. 3 vols. (Contains all four Governors of the Federal Reserve System. Payment fromforeign Handbooks plus substantial additional material.) $200.00 residents should be drawn on a U. S. bank. per year. Rates for subscribers outside the United States are as follows and include additional air mail costs: THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS. Federal Reserve Regulatory Service, $250.00 per year. 1984. 120 pp. Each Handbook, $90.00 per year. ANNUAL REPORT. THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A ANNUAL REPORT: BUDGET REVIEW, 1990-91. MULTICOUNTRY MODEL, May 1984. 590 pp. $14.50 each. FEDERAL RESERVE BULLETIN. Monthly. $25.00 per year or WELCOME TO THE FEDERAL RESERVE. March 1989.14 pp. $2.50 each in the United States, its possessions, Canada, INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. and Mexico. Elsewhere, $35.00 per year or $3.00 each. 440 pp. $9.00 each. ANNUAL STATISTICAL DIGEST FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. 1974-78. 1980. 305 pp. $10.00 per copy. December 1986. 264 pp. $10.00 each. 1981. 1982. 239 pp. $ 6.50 per copy. FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALY- 1982. 1983. 266 pp. $ 7.50 per copy. SIS AND POLICY ISSUES. August 1990.608 pp. $25.00 each. 1983. 1984. 264 pp. $11.50 per copy. 1984. 1985. 254 pp. $12.50 per copy. 1985. 1986. 231pp. $15.00 per copy. CONSUMER EDUCATION PAMPHLETS 1986. 1987. 288 pp. $15.00 per copy. 1987. 1988. 272 pp. $15.00 per copy. Short pamphlets suitable for classroom use. Multiple copies are 1988. 1989. 256 pp. $25.00 per copy. available without charge. 1980-89. 1991. 712 pp. $25.00 per copy. 1990. 1991. 196 pp. $25.00 per copy. Consumer Handbook on Adjustable Rate Mortgages SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES Consumer Handbook to Credit Protection Laws OF CHARTS. Weekly. $30.00 per year or $.70 each in the A Guide to Business Credit for Women, Minorities, and Small United States, its possessions, Canada, and Mexico. Businesses Elsewhere, $35.00 per year or $.80 each. How to File A Consumer Credit Complaint THE FEDERAL RESERVE ACT and other statutory provisions Series on the Structure of the Federal Reserve System affecting the Federal Reserve System, as amended through The Board of Governors of the Federal Reserve System August 1990. 646 pp. $10.00. The Federal Open Market Committee REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL Federal Reserve Bank Board of Directors RESERVE SYSTEM. Federal Reserve Banks ANNUAL PERCENTAGE RATE TABLES (Truth in Lending—Reg- Organization and Advisory Committees ulation Z) Vol. /(RegularTransactions). 1969.100pp. Vol. A Consumer's Guide to Mortgage Lock-Ins II (Irregular Transactions). 1969. 116 pp. Each volume A Consumer's Guide to Mortgage Settlement Costs $2.25; 10 or more of same volume to one address, $2.00 A Consumer's Guide to Mortgage Refinancing each. Home Mortgages: Understanding the Process and Your Right Introduction to Flow of Funds. 1980. 68 pp. $1.50 each; 10 or to Fair Lending more to one address, $1.25 each. Making Deposits: When Will Your Money Be Available? Federal Reserve Regulatory Service. Looseleaf; updated at least When Your Home is on the Line: What You Should Know About monthly. (Requests must be prepaid.) Home Equity Lines of Credit Consumer and Community Affairs Handbook. $75.00 per year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A79 STAFF STUDIES: Summaries Only Printed in the 159. NEW DATA ON THE PERFORMANCE OF NONBANK SUB- Bulletin SIDIARIES OF BANK HOLDING COMPANIES, by Nellie Liang and Donald Savage. February 1990. 12 pp. Studies and papers on economic andfinancial subjects that are of general interest. Requests to obtain single copies ofthejull text 160. BANKING MARKETS AND THE USE OF FINANCIAL SERor to be added to the mailing list for the series may be sent to VICES BY SMALL AND MEDIUM-SIZED BUSINESSES, by Gregory E. Elliehausen and John D. Wolken. September Publications Services. 1990. 35 pp. Staff Studies 1-145 are out of print. 161. A REVIEW OF CORPORATE RESTRUCTURING ACTIVITY, 1980-90, by Margaret Hastings Pickering. May 1991. 21pp. 146. THE ROLE OF THE PRIME RATE IN THE PRICING OF BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84, by Thomas F. Brady. November 1985. 25 pp. 147. REVISIONS IN THE MONETARY SERVICES (DIVISIA) IN- REPRINTS OF SELECTED Bulletin ARTICLES DEXES OF THE MONETARY AGGREGATES, by Helen T. Farr Some Bulletin articles are reprinted. The articles listed below and Deborah Johnson. December 1985. 42 pp. are those for which reprints are available. Most of the articles 148. THE MACROECONOMIC AND SECTORAL EFFECTS OF THE reprinted do not exceed twelve pages. ECONOMIC RECOVERY TAX ACT: SOME SIMULATION RESULTS, by Flint Brayton and Peter B. Clark. December Limit of ten copies 1985. 17 pp. 149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS IN Recent Developments in the Bankers Acceptance Market. 1/86. BANKING BEFORE AND AFTER ACQUISITION, by Stephen The Use of Cash and Transaction Accounts by American A. Rhoades. April 1986. 32 pp. Families. 2/86. 150. STATISTICAL COST ACCOUNTING MODELS IN BANKING: Financial Characteristics of High-Income Families. 3/86. A REEXAMINATION AND AN APPLICATION, by John T. Prices, Profit Margins, and Exchange Rates. 6/86. Rose and John D. Wolken. May 1986. 13 pp. Agricultural Banks under Stress. 7/86. 151. RESPONSES TO DEREGULATION : RETAIL DEPOSIT PRICING Foreign Lending by Banks: A Guide to International and U.S. FROM 1983 THROUGH 1985, by Patrick I. Mahoney, Alice Statistics. 10/86. P. White, Paul F. O'Brien, and Mary M. McLaughlin. Recent Developments in Corporate Finance. 11/86. January 1987. 30 pp. Measuring the Foreign-Exchange Value of the Dollar. 6/87. 152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A Changes in Consumer Installment Debt: Evidence from the 1983 REVIEW OF THE LITERATURE ,by Mark J. Warshawsky. and 1986 Surveys of Consumer Finances. 10/87. April 1987. 18 pp. Home Equity Lines of Credit. 6/88. 153. STOCK MARKET VOLATILITY, by Carolyn D. Davis and Mutual Recognition: Integration of the Financial Sector in the Alice P. White. September 1987. 14 pp. European Community. 9/89. 154. THE EFFECTS ON CONSUMERS AND CREDITORS OF The Activities of Japanese Banks in the United Kingdom and in PROPOSED CEILINGS ON CREDIT CARD INTEREST RATES, the United States, 1980-88. 2/90. by Glenn B. Canner and James T. Fergus. October 1987. Industrial Production: 1989 Developments and Historical 26 pp. Revision. 4/90. 155. THE FUNDING OF PRIVATE PENSION PLANS, by Mark J. Recent Developments in Industrial Capacity and Utilization. Warshawsky. November 1987. 25 pp. 6/90. 156. INTERNATIONAL TRENDS FOR U.S. BANKS AND BANKING Developments Affecting the Profitability of Commercial Banks. MARKETS, by James V. Houpt. May 1988. 47 pp. 7/90. 157. M2 PER UNIT OF POTENTIAL GNP AS AN ANCHOR FOR Recent Developments in Corporate Finance. 8/90. THE PRICE LEVEL, by Jeffrey J. Hallman, Richard D. U.S. Exchange Rate Policy: Bretton Woods to Present. 11/90. Porter, and David H. Small. April 1989. 28 pp. The Transmission Channels of Monetary Policy: How Have 158. THE ADEQUACY AND CONSISTENCY OF MARGIN REQUIRE- They Changed? 12/90. MENTS IN THE MARKETS FOR STOCKS AND DERIVATIVE U.S. International Transactions in 1990. 5/91. PRODUCTS, by Mark J. Warshawsky with the assistance of Dietrich Earnhart. September 1989. 23 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A80 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 Ellen V. Futter E. Gerald Corrigan Maurice R. Greenberg James H. Oltman Buffalo 14240 Herbert L. Washington James O. Aston PHILADELPHIA 19105 Peter A. Benoliel Edward G. Boehne Jane G. Pepper William H. Stone, Jr. CLEVELAND* 44101 John R.Miller Vacancy A. William Reynolds William H. Hendricks Cincinnati 45201 Marvin Rosenberg 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 To be announced Ronald B. Duncan1 Charlotte 28230 Anne M.Allen Albert D. Tinkelenberg1 Culpeper Communications John G. Stoides1 and Records Center 22 701 ATLANTA 30303 Edwin A. Huston Robert P. Forrestal Leo Benatar Jack Guynn Donald E. Nelson1 Birmingham 35283 Nelda P. Stephenson FredR. Herr1 Jacksonville 32231 To be announced James D. Hawkins1 Miami 33152 Michael T. Wilson James T. Curry III Nashville 37203 Harold A. Black Melvyn K. Purcell New Orleans 70161 Victor Bussie Robert J. Musso CHICAGO* 60690 Richard G. Cline Silas Keehn Robert M. Healey Daniel M. Doyle Detroit 48231 J. Michael Moore Roby L.Sloan1 ST. LOUIS 63166 H. Edwin Trusheim Thomas C. Melzer Robert H. Quenon James R. Bowen Little Rock 72203 To be announced Karl W. Ashman Louisville 40232 To be announced Howard Wells Memphis 38101 To be announced Ray Laurence MINNEAPOLIS 55480 Delbert W. Johnson Gary H. Stern Gerald A. Rauenhorst Thomas E. Gainor Helena 59601 J. Frank Gardner John D. Johnson KANSAS CITY 64198 Burton A. Dole, Jr. Thomas M. Hoenig Herman Cain Henry R. Czerwinski Denver 80217 Barbara B. Grogan KentM. Scott Oklahoma City 73125 Ernest L. Holloway David J. France Omaha 68102 Sheila Griffin Harold L. Shewmaker DALLAS 75222 Leo E. Linbeck, Jr. Robert D. McTeer, Jr. Henry G. Cisneros Tony J. Salvaggio El Paso 79999 To be announced Sammie C. Clay Houston 77252 To be announced Robert Smith, III1 San Antonio 78295 To be announced Thomas H. Robertson SAN FRANCISCO 94120 James A. Vohs Robert T. Parry Robert F. Erbueu Patrick K. Barron Los Angeles 90051 Yvonne B. Burke John F.Moore1 Portland 97208 William A. Hilliard Leslie R. Watters Salt Lake City 84125 Gary G. Michael Andrea P. Wolcott Seattle 98124 George F. Russell, Jr. 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
A81 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories •B |KM i I i i C=> ALASKA i HAWAII i i i © / j y? Wl •AN LEGEND Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities Boundaries of Federal Reserve Branch * Federal Reserve Branch Cities Territories Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Cite this document
Federal Reserve (1991, December 31). Federal Reserve Bulletin, 1992-01. Bulletin, Federal Reserve. https://whenthefedspeaks.com/doc/bulletin_199201
@misc{wtfs_bulletin_199201,
author = {Federal Reserve},
title = {Federal Reserve Bulletin, 1992-01},
year = {1991},
month = {Dec},
howpublished = {Bulletin, Federal Reserve},
url = {https://whenthefedspeaks.com/doc/bulletin_199201},
note = {Retrieved via When the Fed Speaks corpus}
}