Federal Reserve Bulletin, 1992-02

VOLUME 78 • NUMBER 2 • FEBRUARY 1992 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 107 ASSET-BACKED COMMERCIAL PAPER decreased 0.5 percentage point in November, PROGRAMS to 79.1 percent. In existence since 1983, asset-backed commer- 122 STATEMENT TO THE CONGRESS cial paper programs, which involve the securitization of assets, have grown substantially Alan Greenspan, Chairman, Board of Goverover the past two years. This article examines nors, says that an analysis both of the special the benefits and risks of asset-backed commer- factors affecting the economy at present and of cial paper programs, including the risk-based the requirements for healthy growth of procapital treatment of the liquidity facilities and ductivity and for international competitiveness other supporting arrangements for these pro- over the longer run suggests that any changes grams provided by banking organizations, and made to the tax code should give considerable how the existing guidance on securitization emphasis to the encouragement of long-term activities that the Federal Reserve has provided economic growth through incentives for saving its examiners pertains to asset-backed com- and investment, before the House Committee mercial paper programs. on Ways and Means, December 18, 1991. 125 ANNOUNCEMENTS 117 STAFF STUDY SUMMARY Change in the discount rate. In "Evidence on the Size of Banking Markets Ratings in Community Reinvestment Act from Mortgage Loan Rates in Twenty Cities," examinations now available on a weekly basis. the author considers whether financial innovation and a surge in bank mergers over the past Appointments to the Thrift Institutions Advidecade have broadened the geographic market sory Council. for banking services. The study focuses on the Delay in the effective date of the regulation on market for mortgage loans, considered by real estate appraisals. some to have become national in scope. The data consist of more than 13,500 observations Proposed revisions to the staff commentary of mortgage loan terms covering a sixteen- on Regulation B; proposed revisions to Truth week period for twenty U.S. cities from late in Lending regulations; proposal to resolve a 1987 through early 1988. Results of two conflict between the home equity rules and statistical tests indicate that local market provisions of the Federal Reserve Act and conditions still influence mortgage rates. Regulation O. Public meetings on the application of Bank- America Corporation to acquire Security 119 INDUSTRIAL PRODUCTION AND CAPACITY Pacific Corporation. UTILIZATION Changes in Board staff. The index of industrial production decreased 0.4 percent in November, after three months 128 RECORD OF POLICY ACTIONS OF THE of little overall change. At 107.8 percent of FEDERAL OPEN MARKET COMMITTEE its 1987 annual average, total industrial production was 0.5 percent below its year-ago At its meeting on November 5, 1991, the level. Total industrial capacity utilization Committee adopted a directive that called for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

an immediate slight easing in the degree of A69 GUIDE TO STATISTICAL RELEASES AND pressure on reserve positions and that provided SPECIAL TABLES for giving special weight to potential developments that might require some additional All INDEX TO STATISTICAL TABLES easing during the intermeeting period. The reserve conditions contemplated at this meet- A86 BOARD OF GOVERNORS AND STAFF ing were expected to be consistent with growth of M2 and M3 at annual rates of A88 FEDERAL OPEN MARKET COMMITTEE AND around 3 percent and 1 percent respectively STAFF; ADVISORY COUNCILS over the three-month period from September through December. A90 FEDERAL RESERVE BOARD PUBLICATIONS 135 LEGAL DEVELOPMENTS A92 FEDERAL RESERVE BANKS, BRANCHES, Various bank holding company, bank service AND OFFICES corporation, and bank merger orders; and pending cases. A93 MAP OF THE FEDERAL RESERVE SYSTEM Al FINANCIAL AND BUSINESS STATISTICS These tables reflect data available as of December 29, 1991. A3 GUIDE TO TABULAR PRESENTATION A4 Domestic Financial Statistics A44 Domestic Nonfinancial Statistics A53 International Statistics Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Asset-Backed Commercial Paper Programs Barbara Kavanagh, of the Federal Reserve Bank of OVERVIEW OF THE COMMERCIAL Chicago, and Thomas R. Boemio and Gerald A. PAPER MARKET Edwards, Jr., of the Board's Division of Banking Supervision and Regulation, prepared this article. Commercial paper, one of the oldest money market instruments, is used to raise short-term funds. In existence since 1983, asset-backed commercial Typically, commercial paper is an unsecured, shortpaper programs have grown substantially over the term promissory note issued in bearer form by a past two years. These programs involve the securi- financial or nonfinancial company to satisfy its tization of assets and are attractive to companies funding needs. Its popularity as a funding mechabecause they provide a stable source of funding. At nism stems from (1) its availability as an alternative the same time, they appeal to banking organizations to short-term bank loans and (2) its lower relative because they provide a means of earning fee in- costs when compared with bank loans or debt come and meeting customers' needs for credit and, issuance.1 To be exempt from securities registration at the same time, eliminate the need to maintain the requirements of the Securities and Exchange amount of capital that would be required if loans Commission (SEC), commercial paper must have a were extended directly to the companies. maturity of 270 or fewer days.2 In practice, most Further incentive for participation in these commercial paper issues mature in 30 days or less, programs has been provided by recent revisions to and the maturities of longer-term issues rarely the Securities and Exchange Commission's rules exceed 90 days. While it is sometimes sold in limiting the amount that money market mutual denominations as small as $10,000, commercial funds may invest in commercial paper issues rated paper is generally issued in denominations of less than the highest quality. Through these millions of dollars to meet the requirements of programs, companies whose own commercial paper money market funds and other institutional invesis rated below Al/Pl can continue to have access to tors, which are the major purchasers. the commercial paper market, despite the lower The origins of commercial paper can be traced demand for commercial paper with such ratings. back to the 1800s. Because banking organizations This article examines the benefits and the risks of were restricted to operating in one state, and often asset-backed commercial paper programs. First, it in only one location, companies in one area of the provides an overview of the commercial paper country might not be able to borrow needed funds market and asset-backed commercial paper pro- from banking organizations in other regions. Thus, grams. Next, it discusses the mechanics of the regions of the country with problems regarding the securitization process, the role of banking organi- availability of credit often had interest rates higher zations in the process, and the incentives for banks than those in other regions. During times of high and customers to participate in such programs. seasonal demand, companies in areas with relatively Then it outlines the risks to which asset-backed higher rates found the issuance of commercial commercial paper programs may expose banking organizations. It also addresses the risk-based capital treatment of the liquidity facilities and other 1. By issuing commercial paper, companies are able to secure supporting arrangements provided by banking funding directly from investors in the market instead of using banks as intermediaries and paying for their services. organizations. Last, the article discusses how 2. Other conditions that commercial paper must meet to be existing guidance on securitization activities that exempt from registration requirements include the following: The the Federal Reserve has provided its examiners proceeds of the notes are to be used for current transactions, and the notes are not ordinarily to be advertised for sale to the general pertains to asset-backed commercial paper. public. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

108 Federal Reserve Bulletin • February 1992 paper to be a more cost-effective means of obtaining 1. Outstanding amount of commercial paper, selected financing than borrowing under bank lines of credit.3 years, 1960-91 The growth of the market, however, essentially Billions of dollars ceased from the Great Depression through World Year Outstanding amount War II because of prevailing economic conditions. 1960 4.5 In the postwar economic boom, commercial paper 1965 9.3 again became a source of funding. During the 1970 33.4 1975 48.4 1960s and 1970s, growth in the commercial paper 1980 124.4 1985 298.8 markets accelerated. One cause of the acceleration 1990 566.9 was the inability of banks to raise funds sufficient 1991 (to October) 528.3 to meet corporate loan demand, which forced SOURCE. Federal Reserve Bulletin. borrowers to look to the commercial paper market for credit.4 Many commercial and financial companies also financial and nonfinancial companies as well as discovered the commercial paper market to be a of multinational corporations and foreign firms and viable, cost-effective alternative to bank credit. shows a growth in volume of more than 90 percent Rates on commercial paper, Treasury bills, and from 1985 to 1990. Although commercial paper certificates of deposit tend to move closely together, issues are generally unsecured, the liquidity of most and all three generally change more quickly than issues is fully supported by bank lines of credit. the prime rate. During periods of falling interest Most borrowers in the market reissue or "roll rates, obtaining funds through the issuance of over" commercial paper as the primary method of commercial paper may be cheaper because rates on financing maturing paper. Although some secondary such paper tend to move downward more quickly market activity is associated with commercial paper than the prime rate. Conversely, many commercial issues, original purchasers generally hold the paper paper issuers have relied on bank loans during to maturity. periods of rising interest rates because rates on these loans tend to change more slowly than rates on commercial paper.5 OVERVIEW OF ASSET-BACKED COMMERCIAL The growth of the commercial paper market PAPER PROGRAMS continued to accelerate during the early 1980s as investors, because of their uncertainty regarding Like other securitization programs, asset-backed future rates, favored shorter maturities and as commercial paper programs segregate assets into corporations waited for lower interest rates before pools and transform these pools into market issuing bonds. During this period, money market instruments. The payment of principal and interest mutual funds grew exponentially and became the on these instruments stems from the cash flows largest purchasers of commercial paper. The net collected on the underlying assets in the pool. In effect of these events was a continued increase, not such programs, the underlying assets are the only in the dollar volume of the commercial paper receivables of corporations, and the market instrumarket, but also in the number and type of issuers. ment that is issued is commercial paper. The amount of commercial paper outstanding in Asset securitization began in 1970 when the today's market is well above $500 billion (table 1). federal government through the Government Na- This amount represents obligations of domestic tional Mortgage Association (GNMA) stimulated the securitization of residential mortgages by guaranteeing investors the timely receipt of principal and interest on the securities issued under the 3. Marcia Stigum, The Money Market, rev. ed. (Dow Jones- GNMA program. Soon after, the Federal Home Irwin, 1983), p. 626. 4. Timothy D. Rowe, "Commercial Paper," in Timothy Q. Loan Mortgage Corporation (FHLMC) and the Cook and Timothy D. Rowe, eds., Instruments of the Money Market Federal National Mortgage Association (FNMA) (Federal Reserve Bank of Richmond, 1986), pp. 111-35. also began issuing mortgage-backed securities. In 5. Evelyn Hurley, "The Commercial Paper Market," Federal Reserve Bulletin, vol. 63 (June 1977), p. 530. 1985, securities backed by computer leases, credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Asset-Backed Commercial Paper Programs 109 card receivables, automobile loans, and other types 1. Asset-backed commercial paper programs rated of loans began to be issued.6 by Standard & Poor's, selected years, 1983-91 Asset-backed commercial paper programs use a Number of programs vehicle called a special purpose entity (SPE) to t issue commercial paper. The programs provide a service basically similar to that offered by a 60 factoring company in that the SPE finances the receivables of corporate clients. In other respects, however, the SPE differs from a factoring com- 20 40 pany. Typically, a factor assumes the role of a 1991 credit department for its clients to evaluate the nonrelated third parties to ensure that, for accounting creditworthiness of the clients' customers. While it purposes, the selling institution can treat the finances a client's receivables by purchasing them, transaction as a sale. Third, the commercial paper the SPE does not perform a credit evaluation of issued by these programs is less liquid than each obligor associated with the receivables in the mortgage-backed securities and other types of assetpool as a factor would, but relies instead on an backed securities because no active secondary actuarial review of the past performance of the market exists. client's portfolio of receivables. Also, with an At present, more than seventy asset-backed SPE, the corporate client usually performs the commercial paper programs are in operation, and servicing function whereas in a factoring arrangeestimates of the size of the market for this paper ment the factor generally services the receivables. currently range from $50 billion to $70 billion. In Unlike the more familiar mortgage or credit card the 1980s, programs advised by domestic banking securitizations, asset-backed commercial paper organizations dominated the asset-backed commerprograms are ongoing activities that do not wind cial paper market. Currently, participants in this down by themselves after a few years. Generally, in market also include foreign banking organizations, the more traditional securitizations, the SPE holds a retail companies, and finance companies, which are definitive pool of assets that back a specific issue of estimated to account for one-half of the outstanding securities. Once the securities have been paid off, commercial paper issued by asset-backed commerthe transaction unwinds. In asset-backed commercial cial paper programs. paper programs, the SPE continually purchases Standard & Poor's Corporation rated the first new receivables and usually rolls over the outcommercial paper program backed by pooled standing commercial paper. receivables in April 1983 and the second in January Asset-backed commercial paper programs may 1985 (chart 1). By year-end 1988, Standard & differ from the more traditional securitization Poor's had rated eleven programs with the total programs in several other ways. First, these capacity of issuing more than $16 billion of programs issue short-term commercial paper as the commercial paper. By November 1991, Standard & instrument to fund the purchase of the underlying Poor's had rated sixty such programs, which have assets. Most other asset-backed instruments have the capacity of issuing more than $48 billion of maturities of more than two years. Second, the commercial paper.7 (See table 2 for the various banking organization advising the program may credit ratings and their definitions.) provide credit enhancements or guarantees because the commercial paper is backed by assets sold to the SPE by nonrelated third parties. Generally, in THE SECURITIZATION PROCESS the more traditional securitizations, in which the acquired assets are sold by the advising banking Asset-backed commercial paper programs use an organization, credit enhancements are obtained from SPE to acquire legal title to receivables directly 6. Thomas R. Boemio and Gerald A. Edwards, Jr., "Asset 7. Avi Oster and Barry Wood, "Commercial Paper: Pooled Securitization: A Supervisory Perspective," Federal Reserve Receivables' Robust Growth," Standard & Poor's Creditweek Bulletin, vol. 75 (October 1989), pp. 659-69. (March 27, 1989), p. 90. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

110 Federal Reserve Bulletin • February 1992 2. Definitions of commercial paper credit ratings Standard & Poor's Corporation Moody's Investors Service Definition Rating Definition Rating Capacity for timely payment Ability for repayment Extremely strong A1+ 1 Superior Prime 1 (PI) Strong A1 J Satisfactory A2 Strong Prime 2 (P2) Adequate A3 Acceptable Prime 3 (P3) Speculative B Doubtful capacity for payment C Debt in payment default D Not of prime quality NP from corporations. To date, the type of receivables to advising and providing all of the required credit that have been included in such programs are trade or liquidity enhancements needed to support the receivables, installment sales contracts, financing SPE's commercial paper. In most cases, the advising leases, noncancelable portions of operating leases, bank or an affiliate performs a review to determine and credit card receivables. By using these pro- whether the receivables of potential participants in grams, a bank can help arrange the financing of the program—that is, the corporate sellers—are receivables for its corporate customers without eligible for purchase by the SPE. The review is having to make loans or purchase assets, which somewhat similar in scope to the review used in could inflate its balance sheet and increase its structuring securitizations backed by credit card capital requirements. In some instances, these receivables or automobile loans. It covers the credit programs are designed to remove assets (typically origination standards of the corporation and the credit card receivables originated by the bank) from current and historical quality and performance of the advising bank's books. its portfolio. Ideally, the bank traces the per- To avoid having to consolidate an SPE on its formance of the corporation's portfolio through a balance sheet, the advising bank does not own any complete business cycle and evaluates the current of the capital stock.8 Employees of an investment portfolio's expected performance. The bank reviews banking firm or some other third party generally the receivables in the portfolio to make sure that own the equity of the SPE. As previously noted, to they are widely distributed across regions of the obtain funding the SPE issues commercial paper, country and among obligors and industries. Once a which is ultimately repaid from the cash flow of the bank or its affiliate determines that a corporation's underlying pools of receivables. The rating agencies portfolio has an acceptable credit-risk profile, the require that the entire amount of outstanding bank or an affiliate approves the purchase of the commercial paper be covered by liquidity and company's receivables portfolio by the SPE. credit enhancements before the program can receive The bank or an affiliate may also act as the the highest investment rating (see chart 2). operating agent for the SPE. Acting as operating Bank involvement in an asset-backed commercial agent entails structuring the sales of pools of the paper program can range from advising the program corporate client's receivables to the SPE and continuously monitoring the performance of the 8. Under generally accepted accounting standards and SEC pools. The SPE then issues commercial paper in an reporting requirements, consolidation of the SPE is usually expected amount equal to the discounted purchase price of if the banking organization has a controlling financial interest in the the receivables and uses the proceeds of the sale to SPE. A controlling financial interest would generally be presumed if the banking organization had a majority ownership interest in the buy the receivables from the seller. A company that outstanding voting shares of the SPE, although control might also sells its receivables to an SPE traditionally acts as be deemed to exist in certain situations involving minority the servicer for the receivables and, as such, is ownership. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Asset-Backed Commercial Paper Programs 111 2. An asset-backed commercial paper program: structure and cash flows Transfer of interests in pools of Purchase price | Payment of principal and receivables and initial credit enhancement of receivables i interest on receivables Additional credit \' Capital enhancement investment Credit enhancer Owner Fee Dividends Special purpose entity Liquidity suppor • t (SPE) Referral fee Liquidity provider Advising Fee institution Issuance of commercial 4 Cash proceeds from I commercial paper paper notes I notes Payment of principal and Investment bank interest on commercial paper 1 Cash purchase Distribution of commercial I of commercial paper notes I paper notes | Structure Investors Cash flows — responsible for collecting interest and principal the sale also give the SPE recourse back to the payments on the accounts from the obligors and for seller if there are defaults on the receivables. The periodically passing these funds to the SPE. amount of overcollateralization varies from pool to pool and depends mainly on the asset quality of the receivables originated by the corporate client and the desired credit rating for the commercial paper Credit Enhancements and Liquidity Facilities issued by the SPE. Usually, the level of credit protection provided by overcollateralization is Asset-backed commercial paper programs typically specified as a multiple of historical losses. have several levels of credit enhancement to protect The second level of credit safeguards is designed investors from loss. The first level of protection in to absorb any losses that exceed the sum of the these programs is generally the difference between overcollateralization and recourse. Secondary credit the face value of the receivables purchased and the enhancements include letters of credit, surety discounted price paid, known as a holdback or bonds, or other backup facilities, such as agreements overcollateralization. In some cases, the terms of that obligate a third party to purchase pools of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

112 Federal Reserve Bulletin • February 1992 receivables from the SPE at a specific price. The protection provided investors by credit enhanceloss protection provided by the overcollateralization ments and backup liquidity facilities. Two criteria and secondary credit enhancements may range used by rating agencies are of particular importance. from 15 percent to 35 percent of the amount of First, to obtain the highest credit rating, commercommercial paper outstanding. cial paper issued by the SPE must generally have Besides the support provided by these credit 100 percent liquidity support, which may be enhancements, asset-backed commercial paper provided by a combination of the liquidity and programs usually have support from a liquidity credit enhancements. For example, if the program facility. The general purpose of the liquidity facility is protected by a 15 percent credit enhancement, a (sometimes referred to as a liquidity backup line) is liquidity backup line of 85 percent will be necessary. to provide funds to the SPE to retire maturing Second, the rating on the commercial paper is commercial paper when a mismatch occurs in the integrally tied to the rating on direct obligations of maturities of the underlying receivables and the the bank providing the enhancements. Thus, if the commercial paper obligations or when a disruption short-term deposit rating of the bank providing the occurs in the commercial paper market. Thus, in its enhancements is A2/P2, the commercial paper of purest sense, the liquidity facility's purpose is to the SPE will be given a similar rating at best and cover temporary shortfalls in the cash flows of the never a higher one. SPE that do not result from credit losses on the underlying receivables. The credit enhancements and liquidity facility of Incentives for Banking Organizations an asset-backed commercial paper program may be provided separately or they may be provided Through asset-backed commercial paper programs, together under a single arrangement with a bank. In banking organizations can help arrange short-term a combined arrangement, a bank may be required to financing support for their customers without having purchase pools of receivables to provide funds to to extend them credit directly. Thus, by keeping the SPE to pay off maturing commercial paper, these potential loans off their books, banking regardless of whether the funding shortfall resulted organizations effectively reduce their capital refrom credit deterioration in the particular pool or a quirements. Banking organizations also earn fee liquidity problem in the overall commercial paper income for the service of packaging and monitoring market. pools of receivables as well as for providing When one bank provides both the credit and the liquidity facilities and credit enhancements. The liquidity support enhancements, whether in separate programs therefore improve the performance meafacilities or in a combined arrangement, the sures of banks involved, not only because the fees commercial paper's rating is integrally tied to the earned add to revenue but also because revenue is bank's own short-term rating. Recently, Standard increased without a corresponding increase in the & Poor's placed several asset-backed commercial banks' asset levels. Banks also contend that these paper programs on "Creditwatch," with negative vehicles allow them to help meet the financing implications, after the short-term deposit rating of needs of investment-grade customers that have the bank that provided the credit and liquidity relied on commercial paper in lieu of bank enhancements was downgraded from A1+ to Al. borrowing, and thus enable the banks to regain The reason for the close scrutiny of these programs market share. was their reliance on just one bank for both liquidity and credit support. In other asset-backed commercial paper programs, the A1+ ratings for Incentives for Participating Companies the commercial paper were maintained, despite the deterioration of one bank's short-term rating Companies wishing to obtain financing choose because the bank was part of a diversified group of asset-backed commercial paper programs for several banks providing credit and liquidity support. reasons. First, these programs provide participating In rating the commercial paper issued through companies with an additional, reliable source of these programs, the rating agencies consider the funding at a relatively stable cost. This stability of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Asset-Backed Commercial Paper Programs 113 funding costs results from the diversified pool of of the commercial paper issued by the SPE. In such assets that back the commercial paper issued by the an event, the SPE may be unable to roll over, or pay SPE and the extensive credit and liquidity support off, some or all of its outstanding commercial paper involved. Also, unlike traditional commercial paper at maturity. In this circumstance, the credit deprograms, the cost of funding associated with these terioration in the bank providing credit or liquidity asset-backed programs is considered relatively support could create a liquidity problem for the stable because adverse conditions experienced by SPE. Furthermore, if cash inflows from the an individual participant generally do not affect the underlying receivables are insufficient to pay off overall program's cost. Second, companies may the maturing commercial paper issued by the SPE, want to clean up their balance sheets by reducing then the liquidity facility could be drawn down. their total assets to improve performance ratios or These potential liquidity problems are exacerbated by limiting the amount of their own paper out- because the SEC now restricts money market standing in the market and, instead, issuing new mutual funds, which are major purchasers of assetpaper through the SPE. Third, the funding costs backed commercial paper, to investing no more associated with these asset-backed programs may than 5 percent of their assets in paper rated A2/P2 be less than the direct funding costs for customers or worse at the time of purchase.9 with a commercial paper rating below Al/Pl. Finally, a significant deterioration in asset qual- Finally, these arrangements may provide indirect ity—one exhausting the overcollateralization or reaccess to the commercial paper market for com- course credit enhancements—could result in losses panies that are unable to gain direct access. being absorbed by the secondary credit enhancements, usually letters of credit or cash collateral. The liquidity or credit problems previously Risks Associated with These Programs mentioned, in effect, could bring some portion of the SPE's assets onto the balance sheets of the Three fundamental models, with variants of each banking organizations providing the credit and type, seem to underlie the structuring of the credit liquidity support enhancements. In such a case, the and liquidity support of these programs. First, a banking organizations providing the enhancements program can combine the credit and liquidity would have to acquire some portion of the assets of support into one arrangement; such a combination the SPE or extend credit to the SPE, both of which generally results in an effective guarantee of the actions would increase the total assets of the entire amount of outstanding commercial paper. banking organizations. This increase would ad- Second, a bank can provide separate credit and versely affect their capital ratios and certain perliquidity enhancements. Third, some programs have formance ratios. Because the structures of assetseparate credit and liquidity support mechanisms backed commercial paper programs usually differ, provided by one or more third-party institutions. a case-by-case analysis of these programs is neces- This last model is generally used when a bank is sary to ascertain the exact nature and the extent of selling its own assets, typically credit card receiv- the risks in any credit or liquidity enhancements ables, to the SPE. The bank uses this model to supporting an SPE's commercial paper. ensure that the transfer will be treated as a true sale of assets, that is, without any recourse to the bank. The resulting sales treatment allows the bank to RISK-BASED CAPITAL IMPLICATIONS FOR remove the assets from its books and thus reduce its ASSET-BACKED COMMERCIAL PAPER capital requirements. The banking organization providing credit or A question arises as to whether the liquidity and liquidity support to one of these programs may credit enhancements supporting asset-backed comhave to raise funds itself in connection with these obligations to provide funds to the SPE. For exam- 9. In June 1991, the SEC adopted amendments to its rule 2a-7 ple, the downgrading of the short-term deposit that essentially require a money market fund to limit its total investment in securities rated A2/P2 or below to 5 percent of its rating of a bank providing the credit or liquidity assets and to limit investment in such securities of any one issuer to support could result in a simultaneous downgrading 1 percent of its assets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

114 Federal Reserve Bulletin • February 1992 mercial paper constitute a commitment or a direct guishing feature of an irrevocable guarantee arcredit substitute, that is, a guarantee of the banks rangement is that it does not customarily contain a providing these enhancements. The Board's risk- "material adverse change" (MAC) clause or similar based capital guidelines require banks to hold less provision that would enable the bank providing the capital to support a commitment than to support a guarantee to escape its obligation. guarantee. Therefore, determining whether liquidity In contrast to a financial guarantee, a commitment and credit enhancements are commitments or is defined for risk-based capital purposes as an guarantees may affect the pricing of these off- arrangement that obligates a bank to extend credit balance-sheet obligations and, in turn, the profit- in the form of loans or leases, or to purchase loans ability of these programs. or other assets. The important difference between a Under the risk-based capital guidelines, direct financial guarantee and a commitment is that the credit substitutes include any irrevocable arrange- latter is usually drawn down in the normal course ments that guarantee repayment of financial obli- of business rather than when a party cannot meet its gations, including commercial paper. These guide- obligations. A commitment generally will contain lines contain the following definition of a financial provisions abrogating the lender's obligation and guarantee: thus helping to limit its risk if the borrower's condition worsens. However, the presence or absence the combination of irrevocability with the fact that of a MAC clause or other escape mechanism has no funding is triggered by some failure to repay or perform bearing on the appropriate capital treatment. an obligation. Thus, any commitment (by whatever Under the risk-based capital guidelines, if the name) that involves an irrevocable obligation to make a original maturity of a commitment exceeds one payment to the customer or to a third party in the event year, then it is considered "long term" and is the customer fails to repay an outstanding debt obligation ... is treated, for risk-based capital purposes, as ... a converted at 50 percent to a credit equivalent financial guarantee.10 amount on the balance sheet. Alternatively, if the original maturity of the commitment is one year or Such off-balance-sheet guarantees are converted less, it is considered to be "short term" and the at 100 percent to a credit equivalent amount on the conversion factor becomes 0 percent. Thus, a bank balance sheet and then weighted according to the is not required to hold capital in support of a risk of the counterparty, after taking into account short-term commitment. any eligible collateral or guarantees. Backup facilities under asset-backed commercial These direct credit substitutes or guarantees must paper programs that meet the definition of guaranbe supported by the same amount of capital as if the tees for risk-based capital purposes are to be treated obligation were held directly—as a loan—on the as guarantees. For example, there are "commitbank's balance sheet. The reason for this treat- ments" that obligate a banking organization to loan ment is that the bank providing the guarantee against or to acquire the underlying receivables at faces the same credit risk as if it had a direct the price paid by the SPE, regardless of the quality on-balance-sheet loan to the beneficiary of the of the receivables or any losses on them. In this guarantee. Thus, assuming that a loan to a borrower structure, the SPE would use the proceeds to retire would be assigned a risk weight of 100 percent, a the commercial paper. Under these arrangements, guarantee of the borrower's financial obligations banks cannot revoke their obligation to purchase would generally be assigned the same risk weight the underlying receivables, regardless of any of 100 percent. deterioration in quality; likewise, there is generally A guarantee, or direct credit substitute, is no limit on the amount of credit loss the bank may normally drawn down when the primary obligor be subject to, that is, 100 percent of the enhancement has experienced some difficulties and therefore is is available to absorb credit losses. Consequently, unable to pay its financial obligations. A distin- the banks providing these enhancements ultimately protect the commercial paper investors against loss 10. Board of Governors of the Federal Reserve System, Capital by guaranteeing that the SPEs will have funds to Adequacy Guidelines (Board of Governors, 1989), p. 13 and p. 41 redeem their commercial paper. Arrangements that (12 C.F.R. pt. 208, app. A, sec. III.D.l and 12 C.F.R. pt. 225, have characteristics of a financial guarantee are app. A, sec. III.D.l.). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Asset-Backed Commercial Paper Programs 115 regarded as direct credit substitutes for purposes of grams should establish overall limits on the actual the risk-based capital guidelines. Such an agree- amount of credit and liquidity commitments. ment, even when called a commitment, should be Institutions involved in these programs should also converted at 100 percent to a credit equivalent analyze the underlying pools of receivables and the amount on the balance sheet and generally is risk structure of the commercial paper program. This weighted at 100 percent. analysis should include a review of the following: In contrast, other facilities differentiate between what is potentially available to absorb credit losses • The characteristics, credit quality, and expected and what is available to facilitate liquidity. These performance of the underlying receivables liquidity facilities are most commonly characterized • The banking organization's ability to meet its by, at the very least, a test for some minimum asset obligations under the securitization arrangement quality that must be met before funds will be ex- • The ability of the other participants in the tended to the SPE. For example, funds may not be arrangement to meet their obligations. drawn against receivables of lesser quality, in other words, those in default. Therefore, these facilities A banking organization involved in an assetcould be considered commitments and may be backed commercial paper program needs to have treated as such for purposes of risk-based capital. established policies and procedures to ensure that it follows prudent standards of credit assessment and approval. Such policies and procedures would be EXAMINER GUIDANCE applicable to all pools of receivables to be purchased by the SPE as well as the extension of any credit In 1990, to ensure consistency during examinations, enhancements and liquidity facilities. Procedures the Federal Reserve provided guidance to its should include an initial, thorough credit assessment examiners to use when reviewing an institution's of each pool for which the bank has assumed credit involvement with asset securitization transactions. risk, followed by periodic credit reviews to monitor Although not specifically directed toward asset- performance throughout the duration of the expobacked commercial paper programs, many aspects sure. Furthermore, the policies and procedures of these existing examination guidelines are appli- should outline the credit approval process and cable to these vehicles. For example, the guidance establish "in-house" exposure limits, on a consoliinstructs examiners to check that a banking dated basis, with respect to particular industries or organization participating in a securitization trans- organizations, that is, the companies from which action—whether an asset-backed commercial paper the SPE purchased the receivables as well as the program or some other type—has clearly and receivable obligors. logically integrated these activities into its overall For those banking organizations providing credit strategic objectives. In addition, it states that enhancements and liquidity facilities, an analysis of examiners should determine that the management the institution's funding capabilities should be of the organization understands the risks associated performed to ensure that these institutions are with the various roles that the institution can capable of meeting their obligations under all assume in such programs. foreseeable circumstances. In addition, an analysis Examiners are also instructed to determine that should be completed to determine the effects of the appropriate policies, procedures, and controls, fulfillment of these obligations on the banking including well-developed management information organization's interest rate exposure, asset quality, systems, are in place before the banking organiza- liquidity position, and capital adequacy. tion participates in these programs. They should Examiners, in reviewing backup lines supporting ascertain that the banking organization's board of this type of commercial paper, will distinguish directors periodically reviews significant policies between guarantees and commitments. A backup and procedures relating to these programs before arrangement is considered a direct credit substitute approving them. and, thus, is risk weighted at 100 percent if it Based on this guidance, a banking organization provides credit enhancement to the asset-backed involved in asset-backed commercial paper pro- commercial paper program. In contrast, if the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

116 Federal Reserve Bulletin • February 1992 facility is determined to be solely for liquidity SELECTED BIBLIOGRAPHY support and meets the definition of a short-term commitment with a maturity of one year or less, as Board of Governors of the Federal Reserve System, outlined in the Federal Reserve Board's risk-based Capital Adequacy Guidelines. Washington: Board capital guidelines, a zero conversion factor applies. of Governors, 1989. Boemio, Thomas R., and Gerald A. Edwards, Jr. 'Asset Securitization: A Supervisory Perspec- CONCLUSION tive." Federal Reserve Bulletin, vol. 75 (October 1989), pp. 659-69. In recent years, commercial and investment bankers Cook, Timothy Q., and Timothy D. Rowe, eds. have become involved with new asset securitization Instruments of the Money Market, 6th ed. programs at an increasing rate, and this trend is Richmond: Federal Reserve Bank of Richmond, likely to continue. A relatively new form of 1986. securitization, asset-backed commercial paper ap- Duff & Phelps Credit Rating Agency, Performance pears to be growing in popularity, from the Trend Report. Chicago: D&PCRA, Second perspective both of the investor and of the com- Quarter 1991. panies using these programs for financing. To date, Duff & Phelps, Inc. Rating Approach for Assetthere are no indications that investors are reaching Backed Commercial Paper. Chicago: D&PI, a point of saturation with these commercial paper March 1990. issues. Rather, these issues appear to be a favored Hurley, Evelyn M. "The Commercial Paper Market means of providing investors with a method of since the Mid-Seventies," Federal Reserve achieving even greater diversification of credit risk. Bulletin, vol. 68 (June 1982), pp. 327-34. The market appears to be evolving in the direction "The Commercial Paper Market," of programs that involve an SPE that accommodates Federal Reserve Bulletin, vol. 63 (June 1977), referrals of corporate customers from multiple pp. 523-36. banks rather than from just one institution. Also, Kravitt, Jason H.P., ed. Securitization of Financial the market seems to be moving toward having Assets. Englewood Cliffs, N.J.: Prentice Hall several parties provide credit and liquidity enhance- Law & Business, 1991. ments. Mechanisms such as cash collateral, which Kuhn, Robert Lawrence, ed. Mortgage and Asset minimize the effects of a downgrade of the ratings Securitization. Homewood, 111.: Dow Jonesof the associated instruments of one party, seem to Irwin, 1990. be growing in popularity. These developments may Oster, Avi, and Barry Wood. "Commercial Paper: limit the risks associated with asset-backed com- Pooled Receivables' Robust Growth," Standard mercial paper programs. & Poor's Creditweek (March 27, 1989), Asset securitization activities should remain pp. 89-91. beneficial to banking organizations when conducted Stigum, Marcia. The Money Market, rev. ed. in a prudent manner. Banking organizations, how- Homewood, 111.: Dow Jones-Irwin, 1983. ever, must carefully evaluate the risks inherent in any new form of asset securitization and maintain appropriate controls, systems, and other measures to minimize these risks. Banking regulators will continue to review new asset-backed security structures as they develop in order to assess the associated risks to banking organizations and to the financial system. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

117 Staff Studies The staff members of the Board of Governors of the do not necessarily indicate concurrence by the Federal Reserve System and of the Federal Reserve Board of Governors, by the Federal Reserve Banks, Banks undertake studies that cover a wide range of or by members of their staffs. economic and financial subjects. From time to time Single copies of the full text of each study are the studies that are of general interest are published available without charge. The titles available are in the Staff Studies series and summarized in the shown under ''Staff Studies'' in the list of Federal FEDERAL RESERVE BULLETIN. The analyses and Reserve Board publications at the back of each conclusions set forth are those of the authors and BULLETIN. STUDY SUMMARY EVIDENCE ON THE SIZE OF BANKING MARKETS FROM MORTGAGE LOAN RATES IN TWENTY CITIES Stephen A. Rhoades—Staff, Board of Governors Prepared as a staff study in the winter of 1990-91 Financial innovation and a surge in bank mergers It has been argued that, of all banking services, over the past decade have intensified the debate mortgage lending has been the most affected by the over whether banking markets are still local. That developments tending to widen geographic markets. is, have the decade's developments caused banking A prominent claim in this regard is based on the markets to grow beyond cities and rural localities to fact that such loans represent by far the largest and become regional or national in scope? This question longest-term financial service purchased by most is particularly important with respect to bank consumers. Consumers, therefore, presumably mergers and acquisitions: If banking markets are would be willing to incur greater transactions costs nonlocal, then supply and demand conditions in a in searching for a low-cost mortgage than they locality should not affect prices in that locality; would in obtaining other financial services because therefore, such local conditions would not be the returns to searching would likely be the greatest relevant in the evaluation of the competitive effects in the case of the mortgage. This behavior should of any given merger. generally expand the size of the geographic market This study conducts an empirical test of the issue and drive mortgage interest rates toward a competby examining whether local market concentration itive level. Furthermore, in recent years, mortgages and other local market conditions have a systematic have been packaged as the basis for mortgageinfluence on mortgage interest rates, that is, on the backed securities, which are sold in national price of mortgages. A by-product of this analysis is markets, as are mortgages themselves—for many a test of the price-concentration relationship, which years, they have been sold off by local originators is a hotly debated element in general antitrust to large "permanent investors" located in major analysis. The study analyzes more than 13,500 cities. observations of mortgage interest rate terms and These arguments suggest that mortgage rates non-interest-rate terms covering a sixteen-week should provide a relatively stringent test of the period for twenty U.S. cities from late 1987 through proposition that the market for banking services is early 1988. local. That is, mortgage loans have probably been Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

118 Federal Reserve Bulletin • February 1992 subject to more forces conducive to a geographic of mortgage originators in the United States—combroadening of the market than most other bank mercial banks, savings and loan associations, services; consequently, a finding that mortgage savings banks, credit unions, and mortgage banks; rates are still determined by local market factors is 873 observations were not classified by type of probably a good indication that the market for firm. Most of the newspaper listings of rates also consumer-oriented banking services in general is showed other loan terms: the percentage downpaylocal in nature. A finding that the mortgage market ment required, the length of the loan, points charged is local would also be particularly striking because (fee in terms of percentage points of the loan of the nature of this study's statistical sample, amount), and the maximum loan to which the terms which consists entirely of urban areas. Urban loca- apply. The exclusion of observations with missing tions typically have far more competitors than items left 13,525 observations available for the nonurban areas, and competition is generally one of statistical tests. the factors determining price differences between Both an ordinary-least-squares fixed-marketmarkets. Thus, a sample characterized by a rela- effects model and an OLS model containing specific tively high degree of competition should bias the market variables indicate that local market condiresult of a test for price differentiation toward tions influence mortgage interest rates. Market uniformity of prices. growth and per capita income are the most important Data on the interest rates (prices) banks charge variables, but the Herfindahl index, a measure of for their loans are not generally available. Listings market concentration, also plays a role after conof mortgage rates, however, are fairly common in trolling for costs. newspapers throughout the country. Therefore, to These results for mortgage loans suggest that construct a sample, this study recorded mortgage analyzing bank competition within local geographic rates for the sixteen weeks from September 20, markets is still appropriate. That is, local market 1987, through January 9, 1988, as they appeared in conditions still make a difference. Moreover, the weekly listings published in newspapers in twenty results suggest that market concentration, as meacities. The twenty cities were selected more or less sured by the Herfindahl index, affects the prices randomly, although some choices were made to charged in local markets for mortgages. This would achieve a degree of geographic diversity. appear to support the traditional market-power The listings covered 1,039 lending institutions, explanation for the market structure-performance which, over the sixteen weeks, produced 15,286 relationship rather than the Demsetz efficiency interest rate observations for fixed-rate, conventional explanation. mortgages. The sample included all the major types Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

119 Industrial Production and Capacity Utilization Released for publication on December 16 output in other industries edged down, on balance, last month. At 107.8 percent of its 1987 annual The index of industrial production decreased average, total industrial production was 0.5 percent 0.4 percent in November, after three months of below its year-ago level. Total industrial capacity little overall change. A drop in the output of motor utilization decreased 0.5 percentage point in Novehicles and parts and a strike at a major producer vember, to 79.1 percent. of construction and mining equipment accounted When analyzed by market group, the data show for much of the November decline. Industrial that the production of consumer goods declined Industrial production indexes Twelve-month percent change Twelve-month percent change Products J L 1986 1987 1988 1989 1990 1991 1986 1987 1988 1989 1990 1991 Capacity and industrial production Ratio scale, 1987 production =100 Ratio scale, 1987 production =100 — Total industry — 140 — Manufacturing 140 _ Capacity — _ Capacity 120 120 ^ ^ 100 100 " "" — ^^ ^ ^ N/ Production — 80 / Production — 80 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Percent of capacity Percent of capacity 1979 1981 1983 1985 1987 1989 1991 1979 1981 1983 1985 1987 1989 1991 All series are seasonally adjusted. Latest series, November. Capacity is an index of potential industrial production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

120 Federal Reserve Bulletin • February 1992 Industrial production and capacity utilization Industrial production, index, 1987=100' Percentage change CCCCaaaatttteeeeggggoooorrrryyyy 11999911 19912 NNoovv.. 11999900 ttoo Aug.' Sept.r Oct.? NOV.P Aug.r Sept.' Oct. P NOV.P NNoovv.. 11999911 TTTToooottttaaaallll 108.0 108.2 108.2 107.8 -.1 .2 .0 -.4 -.5 PPPPrrrreeeevvvviiiioooouuuussss eeeessssttttiiiimmmmaaaatttteeee 108.0 108.2 108.2 -.1 .2 .0 MMMMaaaajjjjoooorrrr mmmmaaaarrrrkkkkeeeetttt ggggrrrroooouuuuppppssss PPPPrrrroooodddduuuuccccttttssss,,,, ttttoooottttaaaallll 108.5 108.8 108.9 108.4 -.2 .3 .0 -.4 -.7 CCCCoooonnnnssssuuuummmmeeeerrrr ggggooooooooddddssss 108.4 109.2 109.3 108.8 .1 .7 .1 .5 2.1 BBBBuuuussssiiiinnnneeeessssssss eeeeqqqquuuuiiiippppmmmmeeeennnntttt 121.3 122.3 122.5 121.7 -.9 .8 .2 -.7 -1.0 CCCCoooonnnnssssttttrrrruuuuccccttttiiiioooonnnn ssssuuuupppppppplllliiiieeeessss 96.7 96.4 95.4 95.5 -.2 -.3 -1.1 .1 -6.2 MMMMaaaatttteeeerrrriiiiaaaallllssss 107.2 107.3 107.2 106.8 .1 .1 -.1 -.4 .0 MMMMaaaajjjjoooorrrr iiiinnnndddduuuussssttttrrrryyyy ggggrrrroooouuuuppppssss MMMMaaaannnnuuuuffffaaaaccccttttuuuurrrriiiinnnngggg 108.4 108.9 108.9 108.3 .0 .5 .0 -.5 -.6 DDDDuuuurrrraaaabbbblllleeee 107.8 108.4 108.2 107.3 -.2 .5 -.1 -.9 -2.4 NNNNoooonnnndddduuuurrrraaaabbbblllleeee 109.0 109.5 109.7 109.6 .4 .4 .1 .0 1.7 MMMMiiiinnnniiiinnnngggg 101.3 100.8 100.3 100.3 -1.3 -.5 -.6 .0 -2.9 UUUUttttiiiilllliiiittttiiiieeeessss 110.7 108.9 109.0 109.9 -.2 -1.5 .1 .9 2.8 Capacity utilization, percent MMMEEEMMMOOO CCCaaapppaaaccciiitttyyy,,, pppeeerrr--ccceeennntttaaagggeee 1990 1991 AAvveerraaggee,, LLooww,, HHiigghh,, ccchhhaaannngggeee,,, 11996677--9900 11998822 11998888--8899 NNNooovvv... 111999999000 Nov. Aug.r Sept.r Oct/ NOV.P NNNooovvv... ttt ooo 111 999999111 Total 82.2 71.8 85.0 81.6 79.8 79.8 79.6 79.1 2.6 Manufacturing 81.5 70.0 85.1 80.7 78.6 78.8 78.6 78.0 2.9 Advanced processing 81.1 71.4 83.6 79.6 77.5 77.7 77.5 76.9 3.2 Primary processing 82.4 66.8 89.0 83.2 81.2 81.2 81.1 80.7 2.1 Mining 87.4 80.6 87.2 90.6 88.5 88.0 87.5 87.5 .6 Utilities 86.8 76.2 92.3 83.8 85.9 84.5 84.5 85.1 1.2 1. Seasonally adjusted. r Revised, 2. Change from preceding month to month indicated. p Preliminary. 0.5 percent in November, reflecting a curtailment in 0.4 percent in November, mainly because of a cut the output of autos and trucks and a small decrease in production of motor vehicle parts and supplies; in the production of nondurable consumer goods, the production of other materials was little changed, such as food and clothing. The output of other on average. consumer durables, which include appliances and When analyzed by industry group, the data show other goods for the home, has changed little on that manufacturing production decreased 0.5 perbalance since July. The output of business equip- cent in November, and capacity utilization at ment fell 0.7 percent in November, with the drop in factories fell 0.6 percentage point to 78.0 percent. motor vehicles and the strike-related decline in Operating rates for both primary and advancedconstruction and mining equipment more than processing industries decreased last month, and accounting for the loss. declines were widespread. The utilization rate for Elsewhere in business equipment, overall pro- advanced-processing industries recovered only 1 duction has increased a bit in recent months because percentage point between March (its trough) and of a pickup in the output of information processing July, and in November it fell back to near its March equipment, particularly computers; however, the level; much of the recent weakness has been production of industrial equipment, even after concentrated in transportation equipment, electrical allowing for the effect of the strike, has con- machinery, instruments, and furniture. tinued to fall. The output of construction supplies Despite the recent declines, the operating rate for changed little in November after having fallen primary-processing industries has remained well since June. The output of materials decreased above its spring trough. The output of iron and steel Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization 121 increased for the fifth consecutive month, but Output at mines was unchanged in November, production in most other primary-processing indus- and an increase of more than 1 percent in the output tries held steady or fell last month. of electric utilities boosted utilities production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

122 Statement to the Congress Statement by Alan Greenspan, Chairman, Board and impaired capital positions. The 1980s were of Governors of the Federal Reserve System, also characterized by a wave of mergers and before the Committee on Ways and Means, U.S. buyouts—purchases of corporate assets, often House of Representatives, December 18, 1991 involving substitution of debt for equity and anticipating the sale of assets at higher prices. I I appreciate the invitation to participate in these need not recount for you the subsequent disapimportant hearings on tax policy. In your an- pointments and the fallout for holders of "below nouncement, you made it clear that you intended investment grade" bonds and related loans. to engage in a comprehensive review of the In the household sector, purchases of motor economic issues surrounding fiscal policy today, vehicles and other consumer durables ran for involving not only short-run, cyclical consider- several years at remarkably high levels and were ations but also the implications of taxation for the often paid for with installment or other debt that longer-range growth of the economy. I applaud carried extended maturities. In some parts of the this broad scope; I believe that it is essential if we United States, the household spending boom are to have the assurance that any action taken reached to the purchase of homes, not simply for will truly serve the interests of the nation. essential shelter but as speculative invest- I would like to devote a few minutes to an ments—and often involving borrowing that conassessment of the current economic situation. stituted a heavy call on current and expected Obviously, we must know the nature of the family incomes. The aftermath of all this activity problems we confront before we formulate a is a considerable degree of financial stress in the solution. household sector. The upturn in business activity that began The bottom line of this brief account is that the earlier this year clearly has faltered. It is appar- national balance sheet has been severely ent that the economy is struggling and that some stretched. Although most analysts, of course, strong forces have been working against moder- were aware of the increasingly disturbing trends ate cyclical revival. Now that we are well past of rising debt and elevated corporate leverage, it the period of gyrations associated with the crisis was not clear that these burdens had as yet in the Persian Gulf, we can better gauge the reached a magnitude that would restrain the U.S. strength of the underlying disinflationary forces economy from a moderate cyclical recovery in that were active well before the economy tilted 1991. into recession in the autumn of 1990. Indeed, as inventory liquidation abated at mid- During the 1980s, large stocks of physical year, output moved up and closed the gap with assets were amassed in a number of sectors, the consumption of goods and services in much largely financed by huge increases in indebted- the same manner evident in the early stages of ness. In the business sector, commercial real recoveries in other recent business cycles. A estate is the most obvious example, with the range of leading indicators still were flashing accumulation of vast amounts of office and other positive signals on the economy's prospects. commercial space—space that goes well beyond By late summer, however, with half the recesthe plausible needs in most locales well into the sion losses recovered, it became clear that the future. Our financial intermediaries, not just de- cumulative upward momentum that had characpository institutions but other lenders as well, terized previous recoveries was absent. The lavished credit upon developers, and they are growing propensity of households to pare debt paying the price today in the form of loan losses and of businesses to reduce leverage was a signal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

123 that the balance sheet restraints, feared by many is necessary to foster a resumption of sustained for a long time, had indeed taken hold, working growth. But I have a suspicion that there is more against the normal forces of economic growth. to the story than that. Consumer confidence, These events do not necessarily mean that a which rebounded in a normal fashion as the prolonged period of economic weakness is inev- cyclical recovery began in the spring, fell back as itable, but they do mean that policymakers must the recovery stalled, exacerbating the problems. consider these unusual forces when shaping their Consumers appear to be more apprehensive response in the current situation. It is essential than one might expect, given the broad macrothat the direction of public policy be well tar- economic circumstances. For example, the level geted to the nature of the problem that it is of unemployment and particularly the layoff rate seeking to ameliorate. are well below those levels and rates experienced For example, lower interest rates can reduce in periods of economic weakness; this fact would debt service burdens and their claim on current not seem to square with the deep concerns spendable incomes. Moreover, severely stretched expressed in surveys about perceived labor marprivate sector balance sheets must be reliquified ket conditions. if the economy is to return to normal growth. But It is true that homeowners sense some contraconly in the context of prudent, noninflationary tion, however small, in the market value of their expansion of money and credit are such improve- most important asset, the equity in their homes. ments likely to be lasting. But it surely is no worse a concern today than it In concept, private balance sheet liquification was in the spring. If anything, the data on home also could be facilitated by tax cuts for individ- prices suggest it would be less so. uals or corporations if they are largely saved by I suspect that what concerns consumers, and the recipients. In effect, public debt would dis- indeed everyone, is that the current pause may place private debt on our nation's balance sheet. be underscoring a retardation in long-term But if the markets were to perceive such policy growth and living standards. So long as the initiatives as undermining long-term fiscal disci- recovery proceeded, this latent concern did not pline, long-term interest rates would rise and surface, but as balance sheet constraints held the debt service burdens again would mount. The recovery in check, earlier worries about whether heavy demand that the government is already the current generation will live as well as previplacing on the credit markets is a significant ous ones resurfaced. factor in the persistence of historically high real Such anticipations certainly need not be realbond yields and mortgage rates, which is making ized if we follow appropriate policies, and this the process of private balance sheet adjustment suggests strongly that any current policy initiaall the more difficult. tives should focus on some key fundamentals. The inference I draw from this is that the Indeed, firm reliance on policies directed toward Congress should approach with great caution any longer-term stability and incentives is likely to do proposal that would expand the structural budget as much, or more, for short-term economic exdeficit. At a minimum, care should be taken to pansion as a "quick fix." ensure that any short-run stimulative action does What are the current restraints on growth and not imply a widening of the deficit over the longer how can they be addressed? I, and others, have term. long argued before this committee that the Obviously, any policy that bolstered the asset essential shortcoming of this economy is the side of the nation's private balance sheet or lack of saving and investment. It is here that our eased debt pressures without violating the goals major policy focus should rest. Investment is of long-term federal budget balance or involving the key to enhance productivity and higher imprudent money creation could be of significant living standards. Although we have seen some assistance in our current difficulties. improvement in productivity trends in the past But there appears to be more that is required. decade, our performance leaves much to be It is certainly the case that stretched balance desired—a fact reflected in our loss of internasheets are restraining expansion, and some relief tional competitiveness in many industries and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

124 Federal Reserve Bulletin • February 1992 in the disappointing real incomes of too many that I thank are relevant to your deliberations. U.S. families. Although I believe those principles—which re- Bolstering the supply of saving available to late basically to how fiscal policy can best consupport productive private investment must be a tribute to the achievement of productivity, priority for fiscal policy, and in that regard, reduc- growth, and higher living standards—are gering the call of the federal government on the mane at all times, they may be particularly nation's pool of saving is essential. Federal expen- important in today's economic circumstances. diture restraint is, in turn, crucial to this goal. Traditional fiscal stimuli might temporarily boost We also must recognize that private decisions aggregate demand. But, if you accept the view about saving and investing can be powerfully that the concern of the American people for our affected by how various economic and financial long-term future is at the root of our problem, transactions are taxed. Establishing the optimal then other instruments of policy might well be structure of taxation is no simple matter, and more effective. there are inevitable conflicts among goals. Market forces are already addressing our I would hope that any changes in taxation stretched balance sheets. Record issuance of passed by the Congress in the coming months equity in our capital markets recently is contribwould give a heavy weight to promoting the uting to deleveraging. And large bond issues are capital formation process. In general, special funding short-term debt and removing some of attention should be given to the issue of the that strain. Finally, lower interest rates, as I taxation of capital income. Our current system indicated earlier, are lowering the debt service already does provide some incentives for saving burden. in certain forms, such as retirement accounts or We have made a good deal of progress in the home equity, through favorable treatment of balance sheet adjustment process, and the payoff capital income. But in other areas the incentives in the form of an easing of unusual restraint are nonexistent or, worse, negative. As a more should begin to become evident in the reasonably general matter, the structure of corporate taxa- near future. U.S. industry is striving to enhance tion has long been recognized as distortive and as efficiency and competitiveness. The resulting inan ingredient in the movement toward excessive creases in productivity, more than anything else, leverage that we witnessed in the past decade. should dissipate the concerns of the American As I have argued previously before this com- people about our economic future. Tax policy, in mittee, a reduction in the capital gains tax would my judgment, should endeavor to reinforce these be quite helpful. It is especially important con- underlying trends. sidering our current difficulties with weak real In summary, then, an analysis of both the estate property values. A cut in the capital gains special factors affecting the economy at present tax would buoy property values, which would and of the requirements for healthy growth of alleviate, in part, the collateral shortfalls that productivity and for international competitiveplague our financial institutions. This could in- ness over the longer run suggests that any duce greater financial intermediation and balance changes made to the tax code should give consheet liquification. siderable emphasis to the encouragement of long- How far, and how fast, we can move toward a term economic growth through incentives for tax structure that is more conducive to capital saving and investment. Above all, we must not formation is ultimately a political decision. My lose sight of the crucial need to eliminate the purpose this morning is not to advocate a partic- structural deficit in the federal budget over the ular agenda but rather to suggest some principles coming years. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

125 Announcements CHANGE IN THE DISCOUNT RATE In addition, this release will continue to provide the names of the institutions, their city and state, The Federal Reserve Board announced on Decem- and the date of each examination. Information will ber 20, 1991, a reduction in the discount rate of appear on this release only for those financial 1 percentage point from AVi percent to Vh percent, institutions whose CRA examinations became effective immediately. available during the week indicated on the H.2. The reduction was made on the basis of Only CRA examinations conducted on or after July cumulating evidence, notably monetary and credit 1, 1990, the effective date of public disclosure conditions, as well as current economic conditions, mandated by the Financial Institutions Reform, that point to a receding of inflationary pressures. Recovery, and Enforcement Act of 1989 (FIRREA), This action, together with the cumulative effects have appeared on the release. already in train from previous actions, should provide the basis for a resumption of sustained economic expansion. APPOINTMENTS TO THE This reduction, in part, will realign the discount THRIFT INSTITUTIONS ADVISORY COUNCIL rate with short-term market interest rates. In making the change, the Board voted on rec- The Federal Reserve Board announced on Decemommendations submitted by the boards of directors ber 19, 1991, the names of four new members of the Federal Reserve Banks of New York and appointed to its Thrift Institutions Advisory Council Chicago. The Board subsequently approved similar (TIAC) and designated a new President of the actions by the boards of directors of the Federal Council for 1992. Reserve Banks of Boston, Philadelphia, Cleveland, The Council is an advisory group made up of Richmond, Atlanta, Kansas City, Dallas, and San twelve representatives from thrift institutions. The Francisco, also effective December 20, and by the panel was established by the Board in 1980 and boards of directors of the Federal Reserve Banks of includes representatives from savings and loans, Minneapolis, effective December 23, and of St. savings banks, and credit unions. The Council Louis, effective December 24. meets at least four times each year with the Board of Governors to discuss developments relating to thrift institutions, the housing industry, mortgage CRA EXAMINATION RATINGS NOW AVAILABLE finance, and certain regulatory issues. ON A WEEKLY BASIS Lynn W. Hodge, President and CEO of United Savings Bank, Inc., Greenwood, South Carolina, The Federal Reserve Board announced on Decem- will serve as President. ber 10, 1991, that it will publish its Community The four new members, named for two-year Reinvestment Act (CRA) examination ratings of terms that began January 1, are the following: state member banks on a weekly basis. This action is in accord with a recommendation Vance W. Cheek, President and CEO, Home Federal to bank regulatory agencies made by the Federal Bank, FSB, Johnson City, Tennessee. Financial Institutions Examination Council. The Beatrice D'Agostino, President and CEO, New Jersey CRA ratings now appear in a weekly Board release Savings Bank, Somerville, New Jersey. entitled, "Actions of the Board: Applications and Reports Received" (H.2), beginning with the release Thomas J. Hughes, President, Navy Federal Credit for the week ending November 22, 1991. Union, Merrifield, Virginia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

126 Federal Reserve Bulletin • February 1992 Thomas R. Ricketts, Chairman, President, and CEO, to its staff commentary to Regulation B (Equal Standard Federal Bank, Troy, Michigan. Credit Opportunity). The proposed interpretations address an issue involving the relationship between The other members of the Council are the following: Regulation B and Regulation C (Home Mortgage Disclosure) with regard to data collection on loan Daniel C. Arnold, Chairman and President, Farm & applications received by creditors through brokers Home Financial Corporation, Houston, Texas. or other persons. Comment is requested by Feb- James L. Bryan, President and CEO, TEXINS Credit ruary 14, 1992. Union, Richardson, Texas. The Federal Reserve Board on December 26, 1991, requested public comment on whether to Richard A. Larson, Chairman and CEO, West Bend revise its Truth in Lending regulations dealing with Savings Bank, West Bend, Wisconsin. the disclosure of any discounted initial rate and the Preston Martin, Chairman and CEO, WestFed Hold- payment examples for home equity lines of credit. ings, Inc., San Francisco, California. Comment should be received by February 28. The Board also is seeking comment on a separate Richard D. Parsons, President and CEO, The Dime proposal to resolve a conflict between the home Savings Bank of New York, FSB, New York City. equity rules and provisions of the Federal Reserve Edmond M. Shanahan, President and CEO, Bell Act and Regulation O (Loans to Executive Officers Federal S&L Association, Chicago, Illinois. of Member Banks). Woodbury C. Titcomb, President and CEO, Peoples Bancorp of Worcester, Inc. and Peoples Savings Bank, Worcester, Massachusetts. MEETING ON APPLICATION OF BANKAMERICA CORPORATION TO ACQUIRE SECURITY PACIFIC CORPORATION DELAY IN THE EFFECTIVE DATE OF THE The Federal Reserve Board announced on Decem- REAL ESTATE APPRAISAL REGULATION ber 23, 1991, that a public meeting would be held in Phoenix, Arizona, on January 15, 1992, in The Federal Reserve announced on December 26, connection with the application of BankAmerica 1991, a delay in the effective date of its real estate Corporation, San Francisco, California, to acquire appraisal regulation regarding the mandatory use of Security Pacific Corporation, Los Angeles, Califorstate-licensed or certified appraisers in federally nia. The Board had announced on December 20, related transactions for financial institutions regu- 1991, that public meetings would be held in Los lated by the Board. Angeles, San Francisco, and Seattle, Washington, The change in the effective date to December 31, during the week of January 13, 1992. 1992, conforms to recent amendments made by the The purpose of the meeting was to collect Federal Deposit Insurance Corporation Improveinformation concerning the convenience and needs ment Act of 1991 to the real estate appraisal of the communities to be served by the proposal, provisions contained in Title XI of the Financial including the records of performance of the insti- Institutions Reform, Recovery, and Enforcement tutions under the Community Reinvestment Act. Act of 1989. Any requirements of state law regarding the use of certified or licensed appraisers remain unaffected CHANGES IN BOARD STAFF by the Board's action. The Board of Governors approved the following changes in the Division of International Finance, PROPOSED ACTIONS effective December 6, 1991: The Federal Reserve Board issued for public David H. Howard, formerly Deputy Associate comment on December 23,1991, proposed revisions Director, became Senior Adviser. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 127 Dale W. Henderson, formerly Assistant Director, in the Division of Research and Statistics. Before became Associate Director. leaving the Board in 1979, Mr. Mingo had been a Senior Research Division Officer in the Division of The Board also announced on December 20, Research and Statistics. 1991, the appointment of John J. Mingo as Adviser Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

128 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON NOVEMBER 5, 1991 March. Total industrial capacity utilization edged lower in September. Real personal consumption expenditures ad- 1. Domestic Policy Directive vanced considerably further in the third quarter, partly reflecting a sharp rise in purchases of motor The information reviewed at this meeting suggested vehicles. However, outlays for non-auto goods that economic activity had turned sluggish after weakened in August and September, and partial registering considerable gains around midyear. data for October suggested a slowing in sales of Consumer spending for goods had been lackluster motor vehicles in that month. In addition, indicators recently, and businesses remained cautious about of consumer confidence, which had remained at investing in increased production capacity or subdued levels since the end of the war in the inventories. Industrial production had flattened out, Persian Gulf, had deteriorated significantly in nonresidential construction had moved sharply October. Housing starts declined in September after lower, and housing construction had lost much of rising substantially on balance in earlier months of its forward momentum. Price inflation evidently this year. Sales of both new and existing houses had remained on a gradual downtrend. dropped recently despite lower mortgage rates and favorable price developments. After falling sharply in the first half of the year, total nonfarm payroll employment rose slightly in Shipments of nondefense capital goods rose for a the third quarter and was unchanged in October. second straight month in September. For the third Sizable job gains in the services sector, notably in quarter as a whole, real business spending for health and business services, were offset by losses computers, aircraft, and motor vehicles registered a elsewhere. Manufacturing employment declined sizable gain while outlays for industrial machinery further; durable goods industries bore all of the fell further. Recent data on orders pointed to some loss. Job cutbacks in construction and retail trade further moderate expansion in business spending were larger in October than they had been in recent for equipment in the near term. Nonresidential months. Also, the small September increase in construction continued to contract at a rapid rate as average weekly hours worked by production or outlays for all major types of structures, but nonsupervisory workers was reversed in October. particularly for commercial buildings, fell sharply. The civilian unemployment rate edged back up to Available information on new contracts and com- 6.8 percent. mitments suggested that the rate of decline for Industrial production was little changed over non-office construction activity might slow in August and September after sizable gains in earlier coming months. months; available data indicated that production The pace of inventory liquidation by businesses would remain flat in October. Sluggishness had slowed in July and August from the substantial been evident in most components of the index since second-quarter rate. Ratios of inventories to sales July; abstracting from the output of motor vehicles edged down at manufacturing and non-auto retail and parts, which had been subject to wide swings, firms. In September, stocks held by manufacturers the production of consumer goods and construction increased. supplies had been rising much less rapidly since The nominal U.S. merchandise trade deficit midyear while the output of business equipment widened appreciably in August. For the July-August had not expanded much since reaching its low last period, the trade deficit was significantly larger Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

129 than its average rate in the second quarter, reflecting be consistent with a resumption in the growth of a strong expansion in the value of imports and a both M2 and M3; these aggregates were expected small reduction in the value of exports. The increase to expand at annual rates of around 3 percent and in imports was entirely in consumer goods and 1V2 percent respectively over the three-month period automotive products; other major trade categories from September through December. registered small declines. Part of the drop in exports Over most of the intermeeting period, open resulted from a partial reversal of a sharp second- market operations were directed toward maintaining quarter increase in exports of aircraft and parts. the existing degree of pressure on reserve positions. Indicators of economic activity in the major foreign At the end of October, however, a slight easing of industrial countries suggested continued weak reserve conditions was implemented; this action growth on balance in the third quarter. The rate was taken in response to signs of a weaker-thanof growth in western Germany and Japan was expected economic recovery and flagging consumer considerably slower in the second and third quarters and business confidence. Just before the intermeetthan earlier in the year, although capacity utilization ing period, adjustment plus seasonal borrowing had rates remained high in both countries. In some averaged around $340 million. During the period, other major countries, economic activity was slowly several technical decreases were made to expected and unevenly recovering from a period of recession. levels of adjustment plus seasonal borrowing to Producer prices of finished goods were little reflect the usual autumn pattern of ebbing seasonal changed in September; a firming of prices of credit needs. By the end of the intermeeting period, finished energy goods was offset by lower food following the slackening of seasonal funding needs prices. For finished goods other than food and and the easing of reserve conditions, the volume of energy, producer prices had advanced thus far in borrowing had declined to around $125 million. 1991 at a pace appreciably below that for 1990. At The federal funds rate remained near 5XA percent the consumer level, the September rise in prices during most of the intermeeting period but slipped was larger than the increases in the prior few to about 5 percent after the easing of reserve months. Excluding food and energy items, consumer conditions. prices advanced in September at the same elevated Over the early weeks of the intermeeting period, rate as in the previous three months; however, for other short-term interest rates declined somewhat 1991 to date, nonfood, non-energy consumer prices as market participants interpreted incoming data as had increased at a slightly slower pace than in indicating a sluggish economy. At the same time, 1990. Total hourly compensation for private indus- long-term rates moved considerably higher in try workers rose at a somewhat slower rate in the response to the release of disappointing statistics on third quarter than in the first half of the year. For consumer prices and concerns stemming from the year to date, wage increases had slowed appre- discussions of possible measures of fiscal stimulus ciably, but benefit costs had continued their rapid that would increase the federal deficit and borrowing rise. needs. Subsequently, short-term rates fell further At its meeting on October 1,1991, the Committee and long-term rates retraced a portion of their rise adopted a directive that called for maintaining the as markets reacted to information suggesting existing degree of pressure on reserve positions and additional economic weakness and reduced pressure for giving special weight to potential developments on labor costs, and to actual as well as prospective that might require some easing during the inter- further easing of monetary policy. The prime rate meeting period. Accordingly, the directive indicated remained unchanged at 8 percent over the period, that slightly greater reserve restraint might be but primary-market yields on mortgages fell to acceptable or slightly lesser reserve restraint would their lowest levels since 1977. Most stock price be acceptable during the intermeeting period de- indexes were slightly higher on balance. pending on progress toward price stability, trends The trade-weighted value of the dollar in terms in economic activity, the behavior of the monetary of the other G-10 currencies fluctuated in a fairly aggregates, and developments in foreign exchange narrow range over the intermeeting period but and domestic financial markets. The reserve condi- declined slightly on balance. The dollar was tions contemplated at this meeting were expected to generally higher over the first half of the period but Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

130 Federal Reserve Bulletin • February 1992 then weakened in response to growing evidence of In the Committee's discussion of current and a sluggish U.S. economy and consequent market prospective economic developments, the members anticipation of an easing of U.S. monetary policy. commented on widespread indications of deterio- The dollar was up a little against the mark, in large rating business and consumer confidence and on part reflecting concerns that the Soviet Union might evidence that the recovery in business activity had default on its foreign debt, much of which is owed weakened since early summer. Nonetheless, despite to or guaranteed by the German government. The quite negative anecdotal reports from many parts of yen was strong on balance, in part because of the country, the members generally concluded that continuing indications of growing Japanese trade the available economic data appeared consistent surpluses. with continuing, albeit sluggish, expansion in overall M2 expanded slowly in October after shrinking economic activity. Views differed to some extent on balance over the previous three months. The with regard to the risks to a continuing recovery. A turnaround was consistent with the Committee's number of members expressed concern about the expectations for the fourth quarter and reflected in potential for some further softening, especially in part the rapid growth in the liquid-deposit compo- light of the vulnerability of the expansion stemming nents of this monetary aggregate. As the Committee from the troubled condition of many financial also had expected, the pickup in M2 showed institutions and the heavy debt burdens of numerous through to M3, which posted its first monthly business firms and individual households; other increase since May. For the year through October, members saw the risks as more evenly balanced expansion of both M2 and M3 was estimated to and perhaps even tilted marginally to the upside. have been at the lower ends of the Committee's While the performance of the economy was likely annual growth ranges. to remain relatively lackluster over the nearer term and the risks of a downturn would be greatest The staff projection prepared for this meeting during the next quarter or two, many of the members pointed to a continuing recovery in economic judged a resumption of growth next year at a pace activity, but recent reports on business and consumer broadly in line with the staff forecast to be a confidence combined with other information had reasonable expectation. In this regard, some noted led to an appreciable markdown in the projected that much of the stimulus from the easing in rate of expansion for the current quarter and to a monetary policy over the course of recent months lesser markdown for the first quarter of 1992. had not yet been felt in the economy. Many of the Economic growth was projected to pick up by the members emphasized that the prospects for apprespring of next year, but as in earlier staff forecasts, ciable progress toward price stability were quite it was expected to remain subdued in comparison favorable, though some expressed reservations about with past cyclical experience and the risks of a the extent of the progress that could be expected different outcome continued to be seen as predomover the forecast horizon. inantly on the downside. Increases in the construction of single-family housing and in business Several members referred to the continuing spending for equipment, along with a shift from adjustments by financial institutions and many inventory liquidation to limited accumulation, were business firms to the financial excesses of the past expected to give impetus to the expansion during decade and the greater-than-expected downward 1992. As in earlier forecasts, real federal govern- pressure that these adjustments appeared to be ment purchases were projected to fall somewhat exerting on the expansion. The efforts to reduce next year, with defense expenditures more than debt exposure and rebuild equity positions were accounting for the decline, and fiscal adjustments at necessitated by the effects on balance sheets of the the state and local levels and a continuing decline contraction in the value of a variety of assets, in commercial construction were expected to be notably in the structurally troubled sectors of the persisting sources of restraint on aggregate demand. economy such as commercial real estate, and the Significant though diminishing slack in labor and failure of other assets to appreciate as expected. product markets was projected to induce a further The rebuilding of balance sheets augured well for decline in the underlying rate of inflation over the the future financial health and stability of the next several quarters. economy, but members commented that an ex- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee 131 tended period would be required before that process interest-sensitive spending for durable goods was could be completed. In the interim, the retrenchment seen as a likely prospect that would have feedback that was involved implied reduced propensities to effects on the demand for inventories and production. spend and constrained growth in business activity. According to available data and reports from One facet of the adjustment process was greater around the country, inventories generally appeared caution on the part of institutional lenders. Many to be near acceptable levels, and members continued business borrowers continued to complain about to anticipate that a further swing from inventory the difficulty of obtaining credit, while institutional liquidation to modest accumulation would provide lenders stressed the lack of demand from qualified some stimulus to the economy over the year ahead. borrowers. The members recognized that a number of devel- In the course of the Committee's review of opments argued against a typical surge in inventory business developments in different regions, mem- investment during the recovery, including the now bers continued to report uneven conditions ranging widespread practice of "just-in-time" inventory from modest growth to some further decline in management. Nonetheless, despite sluggish demand, regional activity, but business and consumer the pace of inventory liquidation appeared to have sentiment was described as almost universally slowed in the third quarter, and there were scattered negative. It was unclear to what extent the drop in reports of efforts by some manufacturers to increase confidence reflected the disappointing pace of the their inventories. economic recovery so far or was a harbinger of The construction of new housing also appeared further weakening in economic activity. Members likely to play a positive, though possibly limited, commented that surveys of consumer confidence role in helping to sustain the recovery. Recent had to be viewed with caution because they had indicators of home sales and housing starts were tended in the past to be coincident rather than disappointing, but the demand for new singleleading indicators of economic activity. More family homes would respond over time to the generally, bearish sentiment, though perhaps more declines that had occurred in mortgage interest muted, had not been an unusual occurrence in the rates. Some of that demand might be postponed, early stages of past business recoveries. however, until borrowers were persuaded that While the potential sources of economic stimulus interest rates had bottomed out. On the negative were subject to uncertainty and recent developments side, commercial construction activity would probheightened concerns that the rate of economic ably remain depressed for an extended period as expansion would remain below a desirable pace for excess capacity in many parts of the country an extended period, the members generally antici- gradually was absorbed. With regard to business pated that improvement in key areas of the econ- spending for new equipment, real outlays were omy, notably certain interest-sensitive sectors and indicated to have risen, especially for computers, business inventories, eventually would provide the and this sector could be expected to provide ongoing impetus needed to promote at least moderate growth strength, especially once the expansion was well in overall business activity. In the critical area of under way. consumer demand, members observed that con- In their comments concerning the outlook for sumer caution reflected not only concerns about inflation, members observed that many of the employment prospects and, in the case of many recent statistical indicators and especially the households, relatively heavy debt burdens, but also anecdotal evidence from around the country proappeared to stem from actual or perceived declines vided the basis for considerable optimism that in the market value of residences. Consumer progress was being made toward price stability. expenditures on services were continuing to grow, Developments on the financial side, including low though at a relatively slow pace, but spending on levels of business and consumer borrowing and an goods had edged lower over the course of recent extended period of limited monetary growth, months and many retailers reported that they reinforced expectations of an ongoing movement expected very weak sales during the approaching toward stable prices. Members also noted that the holiday season. With regard to the longer-term information on wages was consistent with a outlook for consumer expenditures, some pickup in downtrend in labor costs despite still substantial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

132 Federal Reserve Bulletin • February 1992 upward pressures on employee benefit costs. Some reduction in the discount rate also was seen as members cautioned, however, that an appreciable providing further encouragement to a drop in the inflationary risk remained in the economy. While prime rate. inflationary expectations might well be waning, as Other members expressed reservations about the evidenced in part by the behavior of equity markets, need for substantial easing, and two indicated that the level of long-term interest rates suggested that they could not support any easing through open inflation concerns had not disappeared. market operations at this time. Some questioned In the Committee's discussion of an appropriate whether monetary policy actions could have a policy for the intermeeting period ahead, a majority constructive influence on business and consumer of the members indicated that they could support a confidence under prevailing circumstances. Indeed, proposal to ease reserve conditions slightly at this appreciable further easing, or any easing, would time and to bias the directive toward possible incur too much risk of reviving inflationary concerns further easing later in the intermeeting period. The with adverse consequences for longer-term debt members recognized that monetary policy had been markets. While none of these members wanted to eased considerably over the course of recent months, rule out the potential need to ease monetary policy including a decision to reduce reserve pressures at significantly further, they preferred to pause and the end of October, and that all of the stimulus from wait for additional evidence before such action was the earlier actions had not yet been felt in the taken, especially given the further stimulus that economy. Nonetheless, in the view of many could be anticipated from previous easing moves. members further modest easing was desirable at Concern also was expressed that the Committee this point to provide some added insurance against might not recognize the need to reverse its course the downside risks in the economy. Such a policy and tighten policy on a timely basis should move would help counter the deterioration in inflationary pressures tend to revive later. business and consumer confidence, and it might Members noted that the expansion of M2 also encourage some decline in longer-term interest appeared to have resumed in October, though at a rates. Under current economic and financial condi- pace that kept the aggregate only at the bottom of tions, this easing would pose negligible risks of the Committee's range for the year. According to deflecting inflation from its downward path. Con- an analysis prepared by the staff for this meeting, tinuing weakness in the monetary aggregates M2 was likely to continue to expand slowly over reinforced the need for easier reserve conditions. the balance of the year, despite the effects of earlier There was considerable discussion regarding the policy easing actions, and for the year as a whole possible advantages of a somewhat stronger move M2 growth was expected to average close to the at this juncture. A ¥z percentage point reduction of lower end of the Committee's range. Some members the discount rate was pending at several Federal commented that an easing in reserve conditions Reserve Banks, but the Board of Governors had not would not only improve slightly the odds that M2 yet made a decision with regard to those proposals. growth would end the year within the Committee's It was noted during this discussion that the Federal range but would also help to put M2 on a desirable Reserve had tended to implement its easing of growth path by early next year. While the relamonetary policy since the spring of 1989 through tionship between money growth and economic a series of small policy actions. That approach activity was subject to substantial uncertainty in the generally appeared to have been appropriate, but short run, they saw a marked advantage, in terms of a number of members expressed concern that the continuity of monetary policy and its credibility, further small moves would lack the visibility that for the Committee to more aggressively foster was needed in present circumstances. If reserve growth of M2 within the annual range. pressures were to be reduced only modestly, this With regard to possible adjustments to the degree action should be accompanied in the view of of reserve pressure during the intermeeting period, many members by Board approval of the pending most of the members who favored some immediate discount rate proposals to signal clearly that easing of reserve conditions also supported a monetary policy was moving against the weakening directive that remained biased toward further easing. tendencies in the economy. An accompanying However, some also indicated that if the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee 133 were to approve the pending proposals to reduce At the conclusion of the meeting the following the discount rate, the intermeeting instruction should domestic policy directive was issued to the Federal then be viewed as symmetrical. Reserve Bank of New York: The members discussed at some length the appropriate timing of the Committee's easing action. The information reviewed at this meeting portrays a Starting that afternoon and continuing over the next sluggish economy and a marked deterioration in business and consumer confidence. Total nonfarm payroll employtwo days, the Treasury would be conducting its ment was unchanged in October after rising slightly over quarterly auctions of notes and bonds. In view of the third quarter, and the civilian unemployment rate this, an immediate policy move would come as a edged back up to 6.8 percent. Industrial production has surprise to many participants in financial markets, been flat in recent months. Consumer spending increased although such a move shortly after the auctions was considerably through the summer, in part because of a sizable rise in expenditures on motor vehicles; sales of widely anticipated. An immediate move, even in motor vehicles slowed in October, however. Real outlays the easing direction, could have an adverse effect for business equipment—especially for computers— on some Treasury market participants, with poten- have been rising, but nonresidential construction has tially unsettling consequences for current and future continued to decline. Housing starts and home sales have Treasury financings. The members agreed that in weakened recently. The nominal U.S. merchandise trade deficit in July-August was significantly above its average general it was preferable to avoid policy moves rate in the second quarter. Wage and price increases have during Treasury refundings, but most felt that the continued to trend downward. contemplated easing move should not be delayed Short-term interest rates have declined somewhat further for any significant period. They concluded that, on since the Committee meeting on October 1, while bond balance, it would be less misleading to take action yields are about unchanged to slightly higher on balance. immediately rather than to wait until the Treasury The trade-weighted value of the dollar in terms of the other G-10 currencies declined on balance over the intermeeting auctions were completed later in the week. It was period. noted in this connection that a prompt easing of Expansion in M2 and M3 resumed in October, albeit at a reserve conditions, and any accompanying Board slow pace. For the year through October, expansion of both action to approve a lower discount rate, would M2 and M3 is estimated to have been at the lower ends of become known to outside observers after the auction the Committee's ranges. The Federal Open Market Committee seeks monetary and of the shorter-term Treasury note but before the financial conditions that will foster price stability and auctions of the intermediate- and long-term Treasury promote sustainable growth in output. In furtherance of issues. these objectives, the Committee at its meeting in July At the conclusion of the Committee's discussion, reaffirmed the ranges it had established in February for growth of M2 and M3 of Vh to 6V2 percent and 1 to all but two of the members indicated that they 5 percent, respectively, measured from the fourth quarter of favored or could accept a directive that called for 1990 to the fourth quarter of 1991. The monitoring range for an immediate slight easing in the degree of pressure growth of total domestic nonfinancial debt also was on reserve positions. These members also noted maintained at 41/2 to 8V2 percent for the year. For 1992, on their acceptance of a directive that included a bias a tentative basis, the Committee agreed in July to use the same ranges as in 1991 for growth in each of the monetary toward possible easing during the intermeeting aggregates and debt, measured from the fourth quarter of period. Accordingly, the Committee decided that 1991 to the fourth quarter of 1992. With regard to M3, the slightly greater reserve restraint might be acceptable Committee anticipated that the ongoing restructuring of during the intermeeting period or slightly lesser thrift depository institutions would continue to depress the reserve restraint would be acceptable depending on growth of this aggregate relative to spending and total credit. The behavior of the monetary aggregates will continue progress toward price stability, trends in economic to be evaluated in the light of progress toward price level activity, the behavior of the monetary aggregates, stability, movements in their velocities, and developments and developments in foreign exchange and domestic in the economy and financial markets. financial markets. The reserve conditions contem- In the implementation of policy for the immediate future, plated at this meeting were expected to be consistent the Committee seeks to decrease somewhat the existing with growth of M2 and M3 at annual rates of degree of pressure on reserve positions. Depending upon progress toward price stability, trends in economic activity, around 3 percent and 1 percent respectively over the behavior of the monetary aggregates, and developments the three-month period from September through in foreign exchange and domestic financial markets, slightly December. greater reserve restraint might or slightly lesser reserve Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

134 Federal Reserve Bulletin • February 1992 restraint would be acceptable in the intermeeting period. expectations with adverse implications for long- The contemplated reserve conditions are expected to be term interest rates and the performance of interestconsistent with growth of M2 and M3 over the period from sensitive sectors of the economy. Further, he did September through December at annual rates of about 3 and not believe that many of the factors that are 1 percent, respectively. importantly inhibiting economic expansion could Votes for this action: Messrs. Greenspan, Corrigan, be constructively addressed by a more accommo- Black, Forrestal, Keehn, LaWare, Mullins, and Parry. dative position. He also feared that the dollar would Votes against this action: Messrs. Angell and Kelley. come under downward pressure in foreign exchange markets with only slight benefits for exports but Mr. Angell dissented because he was concerned added inflation pressures in the domestic economy. about the impact of further easing on inflation expectations and consequently on long-term interest rates. In his view, the prospect for a robust and long-lasting recovery is dependent on the comple- 2. Authorization for Domestic Open Market Operations tion of adjustments in business pricing practices, household savings, and balance sheets more gener- The Committee approved a temporary increase of ally. Monetary policy actions that are perceived as $2 billion, to a level of $10 billion, in the limit on a shift from a focus on price-level stability to one changes between Committee meetings in System on short-term economic growth may well abort the Account holdings of U.S. government and federal needed adjustments. In his view, credible priceagency securities. The increase amended paragraph level targeting would provide assurance, particularly 1(a) of the Authorization for Domestic Open Market given the somewhat precarious short-term business Operations and was effective for the intermeeting outlook, that monetary policy would act to counter period ending with the close of business on either deflation or inflation. The consequence would December 17, 1991. be to foster a considerable downward thrust in long-term interest rates and to set the stage for Votes for this action: Messrs. Greenspan, Corrigan, sustained expansion. Angell, Black, Forrestal, Keehn, Kelley, LaWare, Mr. Kelley dissented because he believed that a Mullins, and Parry. Votes against this action: None. steady policy course was appropriate, at least for now, in the context of the ongoing stimulus that The Manager for Domestic Operations advised could be anticipated from the System's earlier the Committee that the current leeway of $8 billion easing actions. In his view, the outlook for for changes in System Account holdings might not continuing expansion in economic activity remained be sufficient to accommodate the potentially large favorable, and he saw considerable risks in further need to add reserves over the intermeeting period easing at this time. In particular, he was concerned ahead to meet an anticipated seasonal bulge in that a policy easing move would stimulate inflation currency in circulation and required reserves. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

135 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. Parts 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 Directors of the twelve Federal Reserve Banks. Federal Reserve Bank Rate Effective The amendments to Regulation A were effective November 13, 1991. The discount rate changes were Boston 3.5 December 20, 1991 effective on the dates specified in sections 201.51 and New York 3.5 December 20, 1991 Philadelphia 3.5 December 20, 1991 201.52. The Board of Governors is amending Cleveland 3.5 December 20, 1991 12 C.F.R. Part 201 as follows: Richmond 3.5 December 20, 1991 Atlanta 3.5 December 20, 1991 Chicago 3.5 December 20, 1991 St. Louis 3.5 December 24, 1991 1. The authority citation for 12 C.F.R. Part 201 con- Minneapolis 3.5 December 23, 1991 tinues to read as follows: Kansas City 3.5 December 20, 1991 Dallas 3.5 December 20, 1991 San Francisco 3.5 December 20, 1991 Authority: Sections 10(a), 10(b), 13, 13a, 14(d) and 19 of the Federal Reserve Act (12 U.S.C. 347a, 347b, 343 (b) Other extended credit. The rates for other extended et seq., 1Alz, 348 et seq., 357, 374, 374a, and 461); and credit provided to depository institutions under sustained section 7(b) of the International Banking Act of 1978 liquidity pressures or where there are exceptional circum- (12 U.S.C. 347d). stances or practices involving a particular 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 for depository institutions. Reserve Bank Rate Effective The rates for short-term adjustment credit provided to 3.5 December 20, 1991 New York 3.5 December 20, 1991 depository institutions under section 201.3(a) of Reg- Philadelphia 3.5 December 20, 1991 Clev sland 3.5 December 20, 1991 ulation A are: 3.5 December 20, 1991 Atlanta 3.5 December 20, 1991 Chicago 3.5 December 20, 1991 3.5 December 24, 1991 Federal Minneapolis 3.5 December 23, 1991 Reserve Bank Rate Effective Kansas City 3.5 December 20, 1991 Dallas 3.5 December 20, 1991 San Francisco 3.5 December 20, 1991 Boston 3.5 December 20, 1991 New York 3.5 December 20, 1991 Philadelphia 3.5 December 20, 1991 These rates apply for the first 30 days of borrowing. For Cleveland 3.5 December 20, 1991 Richmond 3.5 December 20, 1991 credit outstanding for more than 30 days, a flexible rate Atlanta 3.5 December 20, 1991 will be charged which takes into account rates on market Chicago 3.5 December 20, 1991 St. Louis 3.5 December 24, 1991 sources of funds, but in no cases will the rate changed be Minneapolis 3.5 December 23, 1991 less than the basic discount rate plus one-half percentage Kansas City 3.5 December 20, 1991 Dallas 3.5 December 20, 1991 point. Where extended credit provided to a particular San Francisco 3.5 December 20, 1991 depository institution is anticipated to be outstanding for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

136 Federal Reserve Bulletin • February 1992 an unusually prolonged period and in relatively large market. The Board also concludes that considerations amounts, the 30-day time period may be shortened. relating to the financial and managerial resources and future prospects of Bancshares and Iberia and supervisory factors are consistent with approval. ORDERS ISSUED UNDER BANK HOLDING In connection with this application, the Board has COMPANY ACT received comments from the Plaisance Development Corporation, Opelousas, Louisiana ("Protestant"), Orders Issued Under Section 3 of the Bank critical of the performance of Acadiana Bank, under Holding Company Act the Community Reinvestment Act (12 U.S.C. 2901 et seq.) ("CRA"). The CRA requires the federal First Bancshares of St. Landry, Inc. financial supervisory agencies to encourage financial Opelousas, Louisiana institutions to help meet the credit needs of the local communities in which they operate consistent with the Order Approving the Merger of Bank Holding safe and sound operation of such institutions. To Companies accomplish this end, the CRA requires the appropriate federal supervisory authority to "assess the institu- First Bancshares of St. Landry, Inc., Opelousas, tion's record in meeting the credit needs of its entire community, including low- and moderate-income Louisiana ("Bancshares"), a bank holding company neighborhoods, consistent with the safe and sound within the meaning of the Bank Holding Company operation of such institution," and to take that record Act ("BHC Act"), has applied under section 3(a)(5) into account in its evaluation of bank holding company of the BHC Act (12 U.S.C. 1842(a)(5)) to merge with applications.2 Iberia Bancshares Corporation, New Iberia, Louisiana ("Iberia"), and thereby acquire all of the voting Protestant contends that Acadiana Bank has failed shares of Bank of Iberia, New Iberia, Louisiana to meet the credit needs of its entire community, ("Bank"). including minority neighborhoods. Specifically, Prot- Notice of the application, affording interested per- estant alleges that Acadiana Bank has failed: sons an opportunity to comment, has been published (1) to develop and implement CRA policies; (56 Federal Register 41,848 (1991)). The time for filing (2) to provide funds, grants and loans to minority comments has expired, and the Board has considered community organizations; the application and all comments received in light of (3) to participate in community development the factors set forth in section 3(c) of the BHC Act. projects and to establish businesses and provide Bancshares, which operates one bank subsidiary, jobs within the minority community; First Acadiana National Bank ("Acadiana Bank"), is (4) to provide capital to existing minority owned the 27th largest banking organization in Louisiana, businesses in the community ; with total deposits of $143.1 million, representing less (5) to locate a branch office in the Plaisance commuthan 1 percent of the total deposits in commercial nity; and banks in Louisiana.1 Iberia, which operates one bank (6) to provide capital and financing to minority subsidiary, Bank of Iberia, is the 127th largest com- homeowners in the community.3 mercial banking organization in Louisiana, with total deposits of $27.8 million, representing less than 1 percent of the total deposits in commercial banks in Louisiana. Upon consummation of this proposal, 2. 12 U.S.C. § 2903. 3. Protestant has also raised issues regarding Acadiana Bank's Bancshares would become the 21st largest commercial minority hiring practices and Protestant's request for financing for a banking organization in Louisiana, with total deposits sewer project. While the Board fully supports affirmative programs of $170.9 million, representing less than 1 percent of designed to promote equal opportunity in every aspect of a bank's personnel policies and practices in the employment, development, total deposits in the state. advancement, and treatment of employees and applicants for employ- Bancshares does not compete directly with Bank of ment, the Board believes that a bank's general personnel practices are Iberia in any relevant banking market. Based on all beyond the scope of factors that may be assessed under the CRA. Acadiana Bank has also provided information regarding Protestant's facts of record, the Board concludes that consummarequest for a loan to cover start-up expenses for obtaining governtion of the proposal would not have any significantly ment-sponsored financing for a proposed sewer project, including the adverse effect on competition in any relevant banking circumstances surrounding the Protestant's request and the requirements of government-sponsored loan programs. After careful consideration of the comments and all the evidence in the record, the Board concludes that Protestant's comments regarding his request for a loan from Acadiana Bank do not reflect so adversely on the factors 1. State data are as of December 31, 1990, and market deposit data considered by the Board under the BHC Act as to warrant denial of are as of June 30, 1990. this application. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 137 The Board has carefully reviewed the CRA perfor- Acadiana Bank participates in several programs and mance record of Acadiana Bank, as well as Protes- offers a variety of products targeted to individuals and tant's comments and Bancshares response to those small businesses in low- and moderate-income and comments, in light of the CRA, the Board's regula- minority communities. Acadiana Bank originates tions and the Statement of the Federal Financial loans for small businesses, agricultural purposes, Supervisory Agencies Regarding the Community Re- home improvements and residential, and other purinvestment Act ("Agency CRA Statement").4 Ini- poses. Since 1987, approximately 43 percent of the tially, the Board notes that Acadiana Bank has re- bank's home improvement loans were made to lowceived satisfactory ratings from its primary and moderate-income customers, for a total of supervisor, the Office of the Comptroller of the Cur- $131,915. This amount represents 42 percent of the rency ("OCC") in the most recent examination of its total dollars loaned by Acadiana Bank during this CRA performance. The Agency CRA Statement pro- period. In addition, the bank's investment portfolio vides that a CRA examination is an important and contains locally issued bonds, including bonds issued often controlling factor in the consideration of an by the Parish's housing financing agency. The value of institution's CRA record and that these reports will be these bonds is approximately $1.3 million. Furthergiven great weight in the applications process. more, the bank is the only Small Business Administra- Acadiana Bank has in place the type of policies tion ("SBA"), Federal Housing Administration outlined in the Agency CRA Statement that contribute ("FHA") and Veteran's Administration ("VA") to an effective CRA program. In particular, Acadiana lender in the Parish. Two of the five outstanding SBA Bank has developed a program that establishes stan- loans originated by Acadiana Bank are to minority dards that the bank must meet in ascertaining commu- borrowers. nity credit needs, responding to those needs through Most recently, Acadiana Bank commissioned an the development and delivery of products and ser- assessment of community credit needs in an attempt vices, and monitoring and evaluating the bank's suc- to further meet the credit needs of its delineated cess in meeting those needs and its responsibilities community. Based on that assessment, the bank's under the CRA. Results are monitored at Acadiana CRA Committee reviewed its product mix, which Bank by a CRA Board Committee, composed of four consists of home improvement, home equity, adjustmembers from the bank's board of directors. Respon- able rate mortgage, automobile, student and Small sibilities of this committee include reviewing Acadiana Business Administration loans. As a result, the bank Bank's CRA Statement annually, reviewing the bank's changed its products to make them more affordable geocoded Home Mortgage Disclosure Act ("HMDA") to low- and moderate-income and minority borrowdata, assessing the bank's community outreach ef- ers. Acadiana Bank increased the maximum term of forts, and reviewing participation in special programs its home improvement loan from five years to eight designed to meet the credit needs of low- and moderyears, increased the debt-to-income ratio for its ate-income areas of the community. Acadiana Bank home equity line of credit from 32 percent to 40 also has a CRA Officer Committee, composed of the percent and expanded its product line to include VA CRA officer, the marketing officer and various loan and FHA adjustable rate mortgages. Products includofficers. The primary responsibility of the Officer ing home equity loans and adjustable rate mortgages Committee is to ensure that all CRA policies, proceare advertised in media that reach low- and moderdures and programs are implemented.5 ate-income and minority areas, such as a minorityowned radio station, church bulletins and local news publications. In addition, Acadiana Bank sponsors a variety of 4. The Agency CRA Statement provides guidance regarding the community development projects. For example, the types of policies and procedures that the supervisory agencies believe bank has a three-year funding commitment to the financial institutions should have in place in order to fulfill their Greater Opelousas Economic Industrial Development responsibilities under the CRA on an ongoing basis and the procedures that the supervisory agencies will use during the application Council, Opelousas, Louisiana, a private, non-profit process to review an institution's CRA compliance and performance. corporation whose objective is to promote economic The Agency CRA Statement also explains that decisions by agencies development and job opportunities in St. Landry Parto allow financial institutions to expand will be made pursuant to an analysis of the institution's overall CRA performance and will be ish. The organization has attracted several businesses based on the actual record of performance of the institution. 54 to the community, and these companies employ over Federal Register 13,742 (1989). 1,000 individuals, a majority of which are from low- 5. CRA reports are prepared by Acadiana Bank's CRA officer and reviewed on a regular basis by the full board of directors. These and moderate-income and minority neighborhoods reports show that the CRA committees review the geographic distri- within the bank's delineated community. Acadiana bution of loans, the types of loan products offered, and marketing and Bank also has sponsored seminars for local business community development options. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

138 Federal Reserve Bulletin • February 1992 owners, real estate brokers and other individuals seek- The Board notes that the HMDA data cited by the ing to establish new businesses in an effort to foster Protestant covers only a nine-month period in 1991 economic development. The bank has established an and is based on a loan pool of fewer than 90 loan advisory board composed of business owners, farmers applications. After accounting for withdrawn or inand community leaders to communicate the credit complete loan applications, 52 non-minority and 19 needs in their particular areas of the Parish. minority applications were considered by Acadiana Acadiana Bank has also provided funding for minor- Bank. In addition to constituting a statistically small ity community organizations. For example, Acadiana number of loans, these loan data significantly under- Bank has committed funds and personnel for a three- estimate Acadiana Bank's lending activities by failing year period to Neighborhood Housing Services, La- to capture loans made in approximately half of the fayette, Louisiana ("NHS"), a private corporation bank's service area.8 which provides comprehensive improvement services The most recent examination for CRA compliance to low-income neighborhoods. NHS also administers a conducted by the OCC found no evidence of illegal loan fund to homeowners who do not meet conven- discrimination or other illegal credit practices in Acational lending criteria, and one of the bank's officers diana Bank's housing-related lending activities. In serves on the NHS Board of Directors and its loan addition, Bancshares and Acadiana Bank have comcommittee.6 mitted to review all housing-related loan denials in Acadiana Bank currently operates a branch within order to ensure that Acadiana Bank's lending criteria 12 blocks of the southern boundary of Plaisance, and are being applied on a uniform basis to minority and Bancshares has committed to establish a greater pres- non-minority loan applicants. ence in Plaisance through the establishment of a loan For the reasons discussed above, the Board beoffice and loan officer visits to local churches. Overall, lieves that, on balance, and subject to the commit- Acadiana Bank operates 10 branches throughout its ments made, the CRA record of Acadiana Bank, and delineated community and the geographic distribution the convenience and needs considerations under the of these branches has been found to be satisfactory by BHC Act are consistent with approval of this applithe OCC. cation. The Board also has reviewed the 1991 HMD A data Based on the foregoing and other facts of record, the for Acadiana Bank. As a general matter, these data Board has determined that the application should be, show that Acadiana Bank receives fewer loan appli- and hereby is, approved. Approval of this proposal is cants from minority borrowers than non-minority bor- specifically conditioned on compliance with the comrowers, and that minority applicants are denied loans mitments discussed in this application. The commitat a higher rate than non-minority applicants.7 ments relied on in reaching this decision are conditions All banks have an obligation to ensure that their imposed in writing by the Board in connection with its lending practices are based on criteria that ensure safe findings and decision and may be enforced in proceedand sound lending and equal access to credit for ings under applicable law. This transaction shall not be creditworthy applicants regardless of gender, race or consummated before the thirtieth calendar day follownational origin. The Board is concerned when the ing the effective date of this Order, or later than three lending record of an institution indicates disparities in months after the effective date of this Order, unless lending to minority applicants. The Board also recog- such period is extended for good cause by the Board or nizes that HMDA data provide only a limited measure by the Federal Reserve Bank of Atlanta, acting purof any given institution's lending in the communities suant to delegated authority. served, and that HMDA data have limitations that By order of the Board of Governors, effective provide an inadequate basis, absent other information, December 24, 1991. for determining whether an institution is engaged in illegal discrimination. Voting for this action: Chairman Greenspan and Governors Mullins, Angell, LaWare, and Phillips. Absent and not voting: Governors Kelley and Lindsey. 6. Acadiana Bank also has made donations to civic and religious JENNIFER J. JOHNSON organizations located in low- and moderate-income areas of its delin- Associate Secretary of the Board eated community. 7. Recent amendments to the HMDA for the first time require banking organizations to collect certain information regarding applicants for bank mortgage loans and to report the information regarding both loan approvals and denials to the banking agencies and the 8. Acadiana Bank's service area includes the city of Lafayette, public. The information includes data on race, gender, and income of which is in a metropolitan statistical area ("MSA") and St. Landry individual applicants, in addition to the location of the property Parish, which is outside of a MSA. Under HMDA reporting guidereceiving the potential loan and the disposition of the application. lines, loans made in areas outside of a MSA are not reported. 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Legal Developments 139 Interbank Holding Corporation application. The Board's decision is specifically con- Miami, Florida ditioned on compliance with all of the commitments made in this case. Further, these commitments are Order Approving Formation of a Bank Holding conditions imposed in writing by the Board in connec- Company tion with its findings and decision, and may be enforced in proceedings under applicable law. Interbank Holding Corporation, Miami, Florida ("In- By letter dated December 18, 1991, the Comptroller terbank"), has applied under section 3(a)(1) of the of the State of Florida requested that the Board act Bank Holding Company Act ("BHC Act") (12 U.S.C. expeditiously on this application and shorten the post- § 1842(a)(1)) to become a bank holding company by approval waiting period in this case. Based on the facts acquiring a majority of the voting shares of Grovegate of record, the Board finds that conditions satisfy Bank, Miami, Florida ("Bank"). expeditious action. In accordance with sections 3(b) Notice of the application, affording interested per- and 11(b) of the BHC Act (12 U.S.C. §§ 1842(b)(1) and sons an opportunity to submit comments, has been 1849(b)(1)), the acquisition of Bank may be consumpublished (56 Federal Register 23,295, 26,094). The mated on or after the fifth calendar day following the time for filing comments has expired, and the Board effective date of this Order, but no later than three has considered the application and all comments re- months after the effective date of this Order, unless ceived in light of the factors set forth in section 3(c) of such period is extended for good cause by the Board or the BHC Act. the Federal Reserve Bank of Atlanta, acting pursuant to delegated authority. Interbank is a non-operating corporation formed for the purpose of acquiring Bank. Bank controls deposits By order of the Board of Governors, effective Deof approximately $14.6 million and is the 310th largest cember 23, 1991. commercial banking organization in Florida, representing less than 1 percent of the total deposits in Voting for this action: Chairman Greenspan and Governors commercial banking organizations in the state.1 Bank Mullins, Angell, LaWare, and Phillips. Absent and not voting: Governors Kelley and Lindsey. operates in the Miami, Florida, banking market,2 and controls less than 1 percent of the total deposits in JENNIFER J. JOHNSON commercial banks in that market. Interbank and its Associate Secretary of the Board principals are not affiliated with any other depository institution in the Miami, Florida, banking market. Laredo National Bancshares, Inc. Based on all the facts of record, the Board concludes Laredo, Texas that consummation of the proposed transaction would not result in any significantly adverse effects on com- Order Approving Acquisition of a Bank Holding petition or the concentration of banking resources in Company any relevant banking market. Accordingly, the Board concludes that competitive considerations are consis- Laredo National Bancshares, Inc., Laredo, Texas tent with approval of the application. ("Laredo"), a bank holding company within the meaning In assessing the financial factors and future pros- of the Bank Holding Company Act ("BHC Act"), has pects in this case, the Board has considered that, as applied under section 3(a)(3) of the BHC Act part of the proposal, Interbank proposes to provide (12 U.S.C. § 1842(a)(3)) to acquire all of the voting shares substantial additional capital to Bank and thereby of Southshares, Inc., Laredo, Texas ("Southshares"), a make it a more viable competitor. In light of this and registered bank holding company, and thereby acquire the other facts of record, the Board concludes that the Southshares's subsidiary bank, South Texas National financial and managerial resources and future pros- Bank of Laredo, Laredo, Texas ("Bank").1 pects of Interbank and Bank are consistent with approval. Supervisory factors and factors relating to the convenience and needs of the community to be served 1. Laredo's shell subsidiary holding company, LNB Acquisition are also consistent with approval. Co., Inc., will be merged with and into Southshares, and Southshares will be the surviving entity. Immediately following this merger, Based on all the facts of record, including the Southshares will be merged into Laredo and Bank will become a commitments made by Interbank and its principals, wholly owned subsidiary of Laredo. LNB Acquisition will be formed the Board has determined to approve Interbank's solely for the purpose of facilitating this acquisition. In connection with this transaction, certain shareholders of Southshares have granted Laredo options to purchase up to 68.6 percent of the outstanding common stock of Southshares, and Laredo has 1. Data are as of June 30, 1991. applied to exercise these options if any of several preconditions occur. 2. The Miami, Florida, banking market is approximated by Dade These options will become moot upon consummation of the Laredo and Broward Counties. application to acquire Southshares. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

140 Federal Reserve Bulletin • February 1992 Notice of the application, affording interested per- represented by these market HHI figures.6 For examsons an opportunity to submit comments, has been ple, so-called "maquiladora" plants have been estabpublished (56 Federal Register 55,311 (1991)). The lished in Laredo, Texas, and the nearby community of time for filing comments has expired, and the Board Nuevo Laredo, Mexico.7 The dual-plant "maquilahas considered the application and all comments re- dora" economy has the effect of stimulating economic ceived in light of the factors set forth in section 3(c) of growth in these communities. This economic opportuthe BHC Act. nity has created characteristics that make the Laredo Laredo, with deposits of $1.1 billion, is the tenth banking market a particularly attractive market for largest commercial banking organization in Texas.2 potential banking competitors to enter. During the Laredo's subsidiary bank, Laredo National Bank, period 1980-89, the population of Laredo increased by Laredo, Texas, operates offices in Laredo and 27.2 percent, representing the sixth largest increase McAllen, Texas. Southshares, with deposits of $93.9 among the 28 Metropolitan Statistical Areas ("MSA") million, is the 205th largest commercial banking orga- within Texas.8 The amount of deposits in depository nization in Texas and operates one office in Laredo, institutions in the Laredo market has also increased Texas. Upon consummation of the proposed transac- substantially in recent years. During the period from tion, Laredo would remain the tenth largest commer- 1987 to 1990, Laredo's total market deposits increased cial banking organization, with deposits of approxi- by 27.1 percent, representing the second largest inmately $1.2 billion. Consummation of this proposal crease of any MSA in Texas.9 Laredo also ranks would not result in any significantly adverse effect on second in population per banking office among the 28 the concentration of banking resources in Texas. MSAs, with a ratio of 14,033 per office, compared to Laredo and Southshares compete directly in the an average of 9,438 in other Texas MSAs.10 Texas has Laredo market.3 Laredo is the largest depository insti- statewide branch banking and nationwide interstate tution in that market, controlling $1.1 billion in depos- banking, which facilitates entry into the market for its, representing approximately 45.6 percent of market potential competitors.11 In 1986 two commercial banks deposits.4 Bank is the fourth largest depository institu- entered the Laredo market. tion in the market, controlling $93.9 million in deposits, In addition, commercial banks in the Laredo marrepresenting approximately 3.7 percent of the market ket have a substantial portion of their deposit acdeposits. Upon consummation of this proposal, Laredo counts in amounts greater than $100,000 and these would remain the largest depository institution in the deposits are largely short-term deposits. In the case market, controlling approximately $1.2 billion in depos- of Laredo, almost 50 percent of its deposits are its, representing approximately 49 percent of market short-term deposits in amounts of over $100,000 deposits. On this basis, consummation of the transac- from investors with whom the bank has developed tion would cause the Herfindahl-Hirschman Index long-standing deposit or commercial relationships. ("HHI") to increase by 337 points to 3631.5 These types of deposits do not serve as a base for A number of unique and important characteristics of significant lending by banks in this market,12 and the Laredo banking market indicate that the competitive effects of this proposal are not as significant as 6. The Board has previously taken into account the unique characteristics of banking markets. Hartford National Corporation, 73 2. Deposit and ranking data are as of June 30, 1990. Federal Reserve Bulletin 720 (1987). 3. The Laredo banking market is approximated by Webb County, 7. "Maquiladora" describes the manufacturing process whereby Texas. parts or raw materials are shipped duty-free from the United States to 4. Market deposit data are calculated on the basis of deposit data for a plant in Mexico. Finished products are then shipped back to the commercial banks operating in the market as well as data for thrift United States and are subject to payment of a reduced duty. institutions in the market weighted at 50 percent. The Board previ- 8. Laredo is the ninth largest MSA in Texas. The population of ously has indicated that thrift institutions have become, or have the Texas increased 19.4 percent during this same period. potential to become, major competitors of commercial banks. See 9. Texas MSAs as a whole lost 3.8 percent of total market deposits Midwest Financial Group, 75 Federal Reserve Bulletin 386 (1989); during this same period. National City Corporation, 70 Federal Reserve Bulletin 743 (1984). 10. Commercial bank deposits per capita in the Laredo market are 5. Under the revised Department of Justice Merger Guidelines, 49 approximately $19,800 while the state average is approximately $7,100. Federal Register 26,823 (June 29, 1984), a market in which the 11. There are more than 70 banking institutions operating in Texas post-merger HHI is above 1800 is considered highly concentrated. In with deposits of over $100 million that could be considered potential such markets, the Justice Department is likely to challenge a merger entrants into the Laredo market. that increases the HHI by more than 50 points. The Justice Depart- 12. As of June 1991, Laredo held approximately 33.7 percent of its ment has informed the Board that a bank merger or acquisition average assets as loans compared to its peer group average of 63 generally will not be challenged (in the absence of other factors percent. The loan-to-assets ratio of all other commercial banks in the indicating anticompetitive effects) unless the post-merger HHI is at Laredo market, including Southshares, has also been below its peer least 1800 and the merger increases the HHI by at least 200 points. The group average since 1988. The record indicates, however, that the Justice Department has stated that the higher than normal HHI market for loans is very competitive despite the relatively low volume threshold for screening bank mergers for anticompetitive effects of loans in area banks. For example, a comparison of mortgage loan implicitly recognizes the competitive effect of limited-purpose lenders rates for banks in the San Antonio market, a relatively unconcentrated and other non-depository financial entities. market, with Laredo's rates shows that these rates are almost identical. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 141 tend to overstate the competitive influence of banks The transaction shall not be consummated before in the market.13 the thirtieth calendar day following the effective date The Board also has taken into account the fact that of this Order, or later than three months following the five commercial banks and two thrifts would remain as effective date of this Order, unless such period is competitors in the market after consummation of the extended for good cause by the Board or by the proposal. Two of these depository institution compet- Federal Reserve Bank of Dallas, acting pursuant to itors represent offices or subsidiaries of relatively large delegated authority. institutions with over $1 billion in deposits and two By order of the Board of Governors, effective Decommercial banking institutions have a substantial cember 24, 1991. presence in the Laredo market.14 In addition, the Board has considered the competitive influence from Voting for this action: Vice Chairman Mullins and Goverthe Mexican financial institutions in the contiguous nors LaWare and Phillips. Voting against this action: Gover- Mexican community of Nuevo Laredo. Thirteen Mex- nor Angell. Absent and not voting: Chairman Greenspan and Governors Kelley and Lindsey. ican banking institutions maintain 32 offices in Nuevo Laredo. Ten of these banks have consolidated assets JENNIFER J. JOHNSON equivalent to greater than $1 billion. Associate Secretary of the Board Based on all of the facts of record in this case, in particular the unique characteristics of the Laredo Dissenting Statement of Governor Angell banking market, the Board concludes that consummation of this proposal would not have a significantly adverse effect on competition or concentration of I have dissented from the Board's action in this case banking resources in the Laredo banking market or in because I have concerns about certain minority shareany other relevant banking markets. The Board has holder interests in this bank holding company. While sought comments from the United States Attorney the Applicant has proposed several measures that will General, the Office of the Comptroller of the Currency, address these concerns, I believe that these issues and the Federal Deposit Insurance Corporation on the should be resolved before consummation of the procompetitive effects of this proposal. None of these posal. agencies has provided any objection to consummation of this proposal or indicated that the proposal would December 24, 1991 have any significantly adverse competitive effect. The Board also concludes that the financial and Orders Issued Under Sections 3 and 4 of the managerial resources and future prospects of Laredo, Bank Holding Company Act Southshares, and Bank are consistent with approval of this proposal. Convenience and needs considerations and supervisory factors are also consistent with ap- Statement by the Board of Governors of the proval. Federal Reserve System Regarding the Based on the foregoing and other facts of record, Application by NCNB Corporation to Acquire and subject to the commitments made by Laredo, the C&S/Sovran Corporation Board has determined that the application should be, and hereby is, approved. Approval of this proposal is specifically conditioned on compliance by Laredo with By Order dated November 29, 1991, the Board apthe commitments made in connection with its applica- proved the applications of NCNB Corporation, Chartion, as supplemented. The commitments relied on in lotte, North Carolina ("NCNB"), pursuant to sections reaching this decision are conditions imposed in writ- 3 and 4(c)(8) of the Bank Holding Company Act ing by the Board in connection with its findings and (12 U.S.C. §§ 1842, 1843(c)(8)) ("BHC Act") to acdecision and may be enforced in proceedings under quire C&S/Sovran Corporation, Atlanta, Georgia, and applicable law. Norfolk, Virginia ("C&S/Sovran"), and thereby to acquire the banking and nonbanking subsidiaries of C&S/Sovran; the application pursuant to section 4(c)(14) of the BHC Act (12 U.S.C. § 1843(c)(14)), to 13. If these deposits were subtracted from the deposits of commercial banks in the Laredo market, Laredo's post-merger market share would be acquire indirectly Commerce Trading Corporation, an 44.5 percent and the HHI would increase by 234 points to 3436. export trading company; and the proposal to acquire 14. International Bancshares Corporation controls $817.5 million in indirectly the shares of Citizens and Southern Internadeposits, representing 32.5 percent of total market deposits, and Union of Texas Corporation, both of Laredo, Texas, controls $287.6 tional Bank and Citizens and Southern International million in deposits, representing 11.4 percent of total market deposits. Bank of Atlanta, which are corporations chartered In addition, International Bancshares Corporation and First Gibraltar, pursuant to section 25(a) of the Federal Reserve Act FSB, Dallas, Texas, each have over $1 billion in total deposits. 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142 Federal Reserve Bulletin • February 1992 (12 U.S.C. § 611 et seq.) ("Edge Act").» Upon Douglas Amendment consummation of these acquisitions, NCNB proposes to change its name to "NationsBank Corporation" Section 3(d) of the BHC Act (12 U.S.C. § 1842(d)), the ("NationsBank"). The Board hereby issues this State- Douglas Amendment, prohibits the Board from apment regarding its approval Order. proving an application by a bank holding company to Notice of the applications, affording interested per- acquire control of any bank located outside of the sons an opportunity to submit comments, has been holding company's home state, unless such acquisition published (56 Federal Register 46,182 (1991)). Because is "specifically authorized by the statute laws of the of the size and geographic scope of the resulting State in which [the] bank is located, by language to organization and the extensive public interest in this that effect and not merely by implication." For purproposal, the Board held public meetings regarding poses of the Douglas Amendment, the home state of these applications at four sites to permit interested NCNB is North Carolina.3 The Board has previously persons an opportunity to present written information determined that the interstate banking statutes of and oral testimony directly to members of the Sys- Florida, Georgia, Maryland, South Carolina and Virtem's staff. These meetings were held during the week ginia permit NCNB to acquire banking organizations of October 7, 1991, in Richmond, Virginia; Charlotte, in those states.4 Tennessee,5 Kentucky,6 and the Dis- North Carolina; Atlanta, Georgia; and Dallas, Texas. trict of Columbia7 have each enacted a reciprocal Over 100 people presented testimony at these meet- interstate banking statute that permits an out-of-state ings. The Board also extended the public comment bank holding company to acquire a bank in these period in this case, providing interested persons over jurisdictions if certain conditions are satisfied. In con- 75 days to submit written comments. sidering this proposal, the Board has analyzed the The Board considered the applications and all com- interstate banking statutes of all of the states involved ments received in light of the factors set forth in and of the District of Columbia and has concluded that sections 3(c) and 4 of the BHC Act and section 25(a) of NCNB is authorized under these statutes to acquire the Federal Reserve Act. the banking subsidiaries of C&S/Sovran located in NCNB, with approximately $69.1 billion in consol- these states and the District of Columbia.8 The approidated assets, controls a total of eight banking subsidiaries located in Delaware, Florida, Georgia, Maryland, South Carolina, North Carolina, Texas, and Virginia, with approximately $48.8 billion in total 3. A bank holding company's home state is that state in which the operations of the bank holding company's banking subsidiaries were deposits.2 C&S/Sovran, with $49.1 billion in consoli- principally conducted on July 1, 1966, or the date on which the dated assets, controls a total of eight banking subsid- company became a bank holding company, whichever is later. The operations of a bank holding company are considered principally iaries and three trust companies located in Florida, conducted in that state in which the total deposits of all such banking Georgia, Kentucky, Maryland, South Carolina, Ten- subsidiaries are largest. nessee, Virginia, and the District of Columbia, with 4. See NCNB Corporation, 70 Federal Reserve Bulletin 225 (1984) (Florida); NCNB Corporation, 72 Federal Reserve Bulletin 61 (1986) approximately $38.8 billion in total deposits. Upon (Georgia); NCNB Corporation, 73 Federal Reserve Bulletin 666 (1987) consummation of this proposal, NationsBank would (Maryland); NCNB Corporation, 72 Federal Reserve Bulletin 57 be the fourth largest commercial banking organization (1986) (South Carolina); NCNB Corporation, 72 Federal Reserve Bulletin 849 (1986) (Virginia). in the United States based on total deposits ($87.6 5. See Tenn. Code Ann. § 45-12-102, 103. The Tennessee statute billion), and the third largest commercial banking conditions entry on the requirement that the out-of-state bank holding organization in the United States based on consoli- company not hold more than I6V2 percent of the total deposits held by all federally insured financial institutions located in Tennessee. Upon dated assets ($118.2 billion). consummation of this proposal, NationsBank will hold approximately 5 percent of the federally-insured deposits in Tennessee. 6. See Ky. Rev. Stat. Ann. § 287.900(6)(b),(c). Kentucky prohibits any bank holding company from engaging in a transaction that would result in the holding company controlling more than 15 percent of all bank deposits in Kentucky. Ky. Rev. Stat. Ann. § 287.900(3). Upon 1. NCNB's shell subsidiary holding company, C&S/Sovran Merger consummation of this transaction, NCNB will control less than 1 Corporation, Wilmington, Delaware ("Merger Corporation"), will be percent of the bank deposits in Kentucky. merged with and into C&S/Sovran, and C&S/Sovran will be the 7. See D.C. Code Ann. §§ 26-801, 802(a)(1). surviving entity. C&S/Sovran will be a wholly owned second tier 8. Each of these statutes permits a bank holding company located in holding company subsidiary of NCNB. Merger Corporation has been North Carolina to acquire a bank in each respective jurisdiction. formed solely for the purpose of facilitating this acquisition. However, the affected states (other than Kentucky) and the District of In connection with this transaction, NCNB and C&S/Sovran have Columbia have statutory provisions requiring that: granted each other an option to purchase up to 19.9 percent of the (1) more than 80 percent of the total deposits held by the banking outstanding common stock of each other's organization, and both subsidiaries of the out-of-state bank holding company be held by organizations have applied to exercise the options if any of several banks located in a particular region; and preconditions occur. These options will become moot upon consum- (2) the "principal place of business" of the out-of-state bank holding mation of the NCNB application to acquire C&S/Sovran. company, as defined under state law, authorize the acquisition of a 2. Asset and deposit data are as of June 30, 1991. bank in the affected state on a reciprocal basis. 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Legal Developments 143 priate bank supervisors in each of these states and the In this regard, the Board expects banking organiza- District of Columbia agree with this conclusion. In tions contemplating expansion proposals to maintain light of the foregoing, the Board has determined that strong capital levels substantially above the minimum its approval of this proposal is not prohibited by the levels specified in the Board's Risk-Based Capital Douglas Amendment. However, approval of this pro- Guidelines.10 The Board carefully analyzes the effect posal is conditioned upon NCNB's receiving all re- of expansion proposals on the preservation or achievequired state regulatory approvals.9 ment of strong capital levels and has adopted a policy that there should be no significant diminution of finan- Financial and Managerial Considerations cial strength below these levels for the purpose of effecting major expansion proposals.11 In evaluating an application under section 3 of the In this case, NCNB proposes to acquire all of the BHC Act, the Board is required to consider the outstanding common and preferred shares of C&S/ financial and managerial resources and future pros- Sovran through a share exchange. NCNB will incur no pects of the companies and banks involved and the debt as a result of the transaction. Upon consummaeffect of the proposed acquisition on those resources. tion of the proposal, NCNB will remain well capital- The Board regards capital adequacy as an especially ized, with capital ratios significantly above the miniimportant factor in the analysis of bank holding com- mum levels specified in the Board's Risk-Based pany expansion proposals, particularly in transactions Capital Guidelines. In addition, NCNB has recently involving a significant acquisition, such as in this case. raised capital and intends to raise additional capital following consummation of this transaction. The proceeds of these capital issuances will be available for capital contributions to subsidiary banks as necessary The relevant state statutes generally provide that a bank holding to ensure that the subsidiary banks have acceptable company's principal place of business is considered to be that state in which the total deposits of all the bank holding company's subsidiary capital ratios. banks are largest on the date of the proposed acquisition. The deposits The facts of record also demonstrate that NCNB has of NCNB's subsidiary bank in Texas exceed the deposits of NCNB's other subsidiary banks and exceed 20 percent of the total deposits in competent and experienced management.12 NCNB NCNB's subsidiary banks. Because deposits of NCNB's subsidiary proposes that NationsBank will provide C&S/ bank in Texas are larger than deposits of NCNB's deposits in any Sovran's subsidiary banks with new management ofother state, Texas is the principal place of business for purposes of these statutes. ficials with demonstrated management capability, to Under these state and District of Columbia statutes, NCNB would the extent necessary. NCNB projects that combining be precluded from acquiring banks in the affected states (other than Kentucky) and the District of Columbia. However, NCNB acquired the operations of NCNB and C&S/Sovran will enable NCNB Texas National Bank pursuant to section 13(f)(2) of the the subsidiary banks of NationsBank to provide more Federal Deposit Insurance Act (12 U.S.C. § 1823(f)(2)), which authorizes assisted emergency interstate acquisitions. Section 13(f) specifically provides that any bank holding company that acquires a bank through an assisted emergency interstate acquisition under that provision may not be prevented by any state law from acquiring any other 10. Risk-Based Capital Guidelines, 12 C.F.R. 225, Appendices A, bank or bank holding company by reason of the emergency acquisi- B, and D. (1991). tion. 12 U.S.C. § 1823(f)(4)(E). This provision was enacted in order to 11. The Bank of New York Company, Inc., 74 Federal Reserve prevent emergency interstate acquisitions from disqualifying the ac- Bulletin 257 (1988); Chemical New York Corporation, 73 Federal quiring bank holding company from future acquisitions under various Reserve Bulletin 378 (1987); Citicorp, 72 Federal Reserve Bulletin 497 regional interstate banking statutes that require that bank holding (1986); National City Corporation, 70 Federal Reserve Bulletin 743 companies maintain at least a given ratio of deposits within the region. (1984). See H.R. Rep. No. 261, 100th Cong., 1st Sess. 172 (1987). Thus, 12. In addressing the managerial considerations of this proposal, the NCNB's deposits in Texas do not preclude the proposed acquisition Board has carefully considered several comments that related to the even though Texas may be deemed under state law to be NCNB's operations of the subsidiary banks of NCNB and C&S/Sovran. Some principal place of business and over 20 percent of deposits in NCNB's comments related to particular consumer and business dealings, banks are in Texas. When NCNB's Texas deposits are excluded, the including loan transactions, involving certain of NCNB's and C&S/ applicable reciprocity requirements of the interstate banking statutes Sovran's subsidiary banks. One comment alleged that one of C&S/ in the affected states and the District of Columbia are satisfied. Sovran's subsidiary banks engaged in discrimination in selecting There is no need to rely on the exemption of section 1823(f)(4)(E) for appraisers to perform real estate appraisal work involving federally- NCNB to acquire banking institutions in Kentucky because such an related transactions in Florida. Another comment alleged that one of acquisition is permissible even though Texas maybe deemed to be C&S/Sovran's subsidiary banks had mishandled, as trustee, an em- NCNB's principal place of business under Kentucky law. See Ky. ployee stock ownership plan that is currently the subject of litigation. Rev. Stat. Ann. § 287.900(6)(b),(c); Tex. Rev. Civ. Stat. Ann. art. Still another comment alleged that NCNB has denied family inheri- 342-916. tance rights to a checking account that was established at a bank 9. To date, the state banking supervisors in Georgia, Maryland, acquired by NCNB. Finally, a commenter alleged that NCNB has Tennessee, Virginia, and the District of Columbia have approved this violated certain federal securities laws. The Board has reviewed these proposal, and the Florida State Comptroller has indicated that no comments in light of all of the facts of record in this case, including application is necessary for NCNB to make the proposed acquisition information responding to these comments provided by NCNB and in Florida. The appropriate state banking supervisors in Kentucky and information provided by other federal regulatory agencies. Based on South Carolina have each indicated preliminarily that NCNB's pro- this review, the Board concludes that these comments do not reflect so posed acquisition of banking institutions in its state is not prohibited adversely upon the managerial resources of NCNB as to warrant by the relevant state banking statutes. denial of these applications. 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144 Federal Reserve Bulletin • February 1992 efficiently a full range of services to their customers concentration of banking resources in any of these 28 and the communities they serve. banking markets.17 Based on the entire record, the Board concludes that the financial and managerial resources and future South Carolina Banking Markets prospects of NationsBank and its subsidiaries are consistent with approval of these applications.13 NCNB owns the third largest depository institution in South Carolina, holding $2.4 billion in deposits, repre- Competitive Factors senting approximately 12.4 percent of the total deposits in commercial banking organizations in the state. NCNB and C&S/Sovran compete directly in 33 bank- C&S/Sovran owns the second largest depository instiing markets in Florida, Georgia, Maryland, South tution in South Carolina, with $2.9 billion in deposits, Carolina, and Virginia. The relative size of Nations- representing approximately 15.6 percent of the total Bank in Florida, Georgia, Maryland, and Virginia deposits in commercial banking organizations in the following consummation of this proposal is described state. Upon consummation of this proposal, Nationsin the Appendix to this Statement. After considering Bank would become the second largest depository the relatively small increase in concentration that organization in South Carolina, with deposits of $5.3 consummation would cause, the number of competi- billion, representing approximately 28 percent of total tors that would remain following consummation of the deposits in commercial banking organizations in South proposal, the attractiveness for entry by other com- Carolina. petitors of the markets involved, and the competition NCNB and C&S/Sovran compete in a total of 15 offered by thrifts14 in 28 of these banking markets,15 as banking markets in South Carolina. For the reasons well as other facts of record,16 the Board concludes noted above, consummation of the proposal would not that consummation of this proposal would not result in have a significantly adverse effect on competition in 10 significantly adverse effects on competition or the of these banking markets.18 In five of the markets in South Carolina, the increase in market concentration, as measured by the resulting HHI calculation for each 13. The Board has received comments from individuals who ques- market, indicates that further analysis is necessary to tioned the viability of NationsBank in light of the financial condition of determine whether consummation of this proposal NCNB and C&S/Sovran, and who voiced concern about the potential loss to the Federal Deposit Insurance Corporation ("FDIC") that would result in significantly adverse effects on compecould result from the failure of NationsBank. Another commenter tition in any of these markets. These markets are the questioned the effectiveness of the due diligence review process used Beaufort County, Darlington County, Newberry by NCNB in evaluating the financial condition of C&S/Sovran. The Board has carefully considered these comments and, based on all the County, Greenwood County and Columbia, South facts of record, including review of relevant examination reports, and Carolina, banking markets. NCNB has proposed difor the reasons discussed in this Statement, concludes that these objections do not warrant denial of these applications. vestitures to mitigate the anticompetitive effects of the 14. The Board previously has indicated that thrift institutions have proposed mergers in four of these markets.19 become, or have the potential to become, significant competitors of commercial banks. See, e.g., First Union Corporation, 76 Federal Reserve Bulletin 83 (1990). In considering the competition offered by thrifts in all banking markets in this case, thrift deposits are weighted at 50 percent, unless otherwise noted. See, e.g., Fleet!Norstar Finan- 17. The Board has received and carefully considered several comcial Group, Inc., 77 Federal Reserve Bulletin 751 (1991). ments regarding the competitive effects of this proposal in particular 15. These banking markets are: the Fort Myers, Hernando County, banking markets as well as comments generally alleging that the Jacksonville, Leon County, Miami, Naples, North Brevard, Orlando, proposal would result in substantially anticompetitive effects in Flor- Port Charlotte, St. Petersburg, Sarasota, South/Central Brevard, ida, the Southeast, or in other broadly defined geographic regions. The Tampa and Venice banking markets in Florida; the Anderson County, Board continues to believe that the appropriate geographic market for Charleston, Florence County, Georgetown County, Greenville, Horry reviewing the competitive effects of bank acquisition proposals is local County, Oconee County, Orangeburg County, Spartansburg and in nature. See, e.g., First Hawaiian, Inc., 77 Federal Reserve Bulletin Sumter County banking markets in South Carolina; the Atlanta and 52 (1991); United States v. Philadelphia National Bank, 374 U.S. 321 Augusta banking markets in Georgia; and the Baltimore, Maryland, (1963). Based on the facts of record, and for the reasons discussed in and Washington, D.C. banking markets. this Statement, the Board concludes that this proposal would not 16. Under the revised Department of Justice Merger Guidelines, 49 substantially lessen competition for banking services, or result in an Federal Register 26,823 (1984), a market in which the post-merger undue concentration of resources, in any relevant banking market. Herfindahl-Hirschman Index ("HHI"), is above 1800 is considered to 18. See supra note 15. be highly concentrated. In such markets, the Department is likely to 19. In each market in which NCNB has committed to divest branch challenge a merger that increases the HHI by more than 50 points. The offices to mitigate possible anticompetitive effects of its proposal, NCNB Department has informed the Board that a bank merger or acquisition has executed sale agreements which require consummation of these generally will not be challenged (in the absence of other factors divestitures within six months of consummation of the proposal. If indicating anticompetitive effects) unless the post-merger HHI is at NationsBank is unsuccessful in divesting these branches within 180 days least 1800 and the merger increases the HHI by more than 200 points. of consummation, NationsBank has agreed to transfer these branches to The Justice Department has stated that the higher than normal HHI an independent trustee authorized to sell these branches promptly and to thresholds for screening bank mergers for anticompetitive effects remit the proceeds to NationsBank. See, e.g., United New Mexico implicitly recognize the competitive effect of limited-purpose lenders Financial Corporation, 77 Federal Reserve Bulletin 484, 485 (1991); First and other non-depository financial entities. Union Corporation, 76 Federal Reserve Bulletin 83 (1990). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 145 In the Beaufort County banking market,20 NCNB is ing market following consummation of this proposal the third largest of ten depository institutions, holding will not change, and the HHI in this market would $148.9 million in deposits.21 C&S/Sovran is the second increase by 202 points to 2086.25 largest depository institution in the market, with ap- In the Newberry County banking market,26 NCNB proximately $167.1 million in deposits. The Board has is the third largest of seven depository institutions, previously determined that thrifts are fully competitive holding $47.2 million in deposits, which represents with commercial banks in this market and, as a result, approximately 19.7 percent of the total deposits in that that the market share of thrifts operating in this market market. C&S/Sovran is the fifth largest depository should be fully weighted in considering the competi- institution in the market, with $18.4 million in depostive effects of transactions in this market.22 With the its, which represents approximately 7.7 percent of market share of thrift competitors weighted at 100 market deposits. Upon consummation of this transacpercent, NationsBank would become the largest de- tion, the HHI in this market would increase by 302 pository institution in this market upon consummation points to 2203. of this transaction, holding $316.0 million in deposits, NCNB has committed to divest one branch in this representing approximately 38.8 percent of market market, representing approximately $15.3 million in share. Upon consummation of this proposal, the HHI market deposits, to a bank not currently operating in in this market would increase by 752 points to 2552. this market. As a result of this divestiture, the number NCNB has committed to divest five branches in this of depository institutions remaining in the Newberry market, representing approximately $74.8 million in County banking market will not change following deposits, to the two banks having the smallest market consummation of the proposal, and the HHI in this shares in this market. Following the proposed divesti- market would increase by 35 points to 1935.27 ture in Beaufort County, NationsBank would be the In the Greenwood County banking market,28 NCNB largest depository institution in this market, holding is the largest of ten depository institutions, with $148.2 $241.3 million in deposits, representing approximately million in deposits, which represents approximately 29.4 percent of market share. The HHI in this market, 32.2 percent of the total deposits in that market. after giving effect to consummation of this proposal C&S/Sovran is the seventh largest depository instituand all divestitures, would increase by 187 points to tion in the market, with $14.7 million in deposits, 1987. There would be one fewer independent compet- which represents approximately 3.2 percent of depositor in the Beaufort County banking market following its in the market. Upon consummation of this transacthe proposal and divestitures, but nine depository tion, the HHI in this market would increase by 205 institutions would remain in this market. points to 2205. In the Darlington County banking market,23 NCNB NCNB has committed to divest one branch in this is the second largest of eight depository institutions, market, representing approximately $25.2 million in with $70.6 million in deposits, which represents ap- market deposits, to a bank not currently operating in proximately 22.8 percent of the total deposits in that this market. With this divestiture, the number of market.24 C&S/Sovran is the third largest depository competitors remaining in the Greenwood County institution in the market, with $43.9 million in depos- banking market following consummation of NCNB's its, which represents approximately 14.2 percent of acquisition of C&S/Sovran will not change, and the market deposits. Upon consummation of this transac- HHI in this market would decrease by 122 points to tion, the HHI in this market would increase by 644 1877.29 points to 2527. NCNB has committed to divest one branch in this market, representing approximately $23.3 million in market deposits, to a bank not currently operating in 25. Following this proposed divestiture in Darlington County, this market. With this divestiture, the number of NationsBank would be the second largest depository institution in the market, controlling approximately $91.3 million in deposits, reprecompetitors remaining in the Darlington County banksenting approximately 29.4 percent of market share. 26. The Newberry County banking market is approximated by all of Newberry County. 20. The Beaufort County banking market is approximated by all of 27. Following this divestiture in Newberry County, NationsBank Beaufort County. would be the third largest depository institution in this market, 21. Market deposit data are as of June 30, 1990. controlling approximately $50.2 million in deposits, representing ap- 22. See South Carolina National Corporation, 76 Federal Reserve proximately 21 percent of market share. Bulletin 1060, 1061 n.6 (1990) ("SCNC")• 28. The Greenwood County banking market is approximated by all 23. The Darlington County banking market is approximated by all of of Greenwood County. Darlington County. 29. Following this proposed divestiture in Greenwood County, 24. Thrift deposits are weighted at 50 percent in the remaining South NationsBank would be the largest depository institution, controlling Carolina banking markets, except the Columbia, South Carolina approximately $137.7 million in deposits, representing approximately banking market discussed below. See supra, footnote 14. 29.9 percent of market share. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

146 Federal Reserve Bulletin • February 1992 In the Columbia banking market,30 NCNB is the after consummation of the proposal. In addition, the third largest of 22 depository institutions, with $507.7 record indicates that the market is very attractive for million in deposits, which represents approximately entry.34 11.8 percent of the total deposits in that market. Based on all of the facts of record in this case, and C&S/Sovran is the second largest depository institu- subject to the divestiture proposals made by NCNB in tion in the market, holding $725.3 million in deposits, this case, the Board concludes that consummation of which represents approximately 16.9 percent of mar- this proposal would not have a significantly adverse ket deposits. Upon consummation of this transaction, effect on competition or the concentration of banking the HHI in this market would increase by 401 points to resources in the Beaufort County, Darlington County, 2159. Newberry County, Greenwood County, or Columbia The record indicates that thrift institutions in the South Carolina banking markets, or in any other Columbia banking market compete actively in the full relevant banking market. The Board has sought comrange of banking products and services, providing ments from the United States Attorney General, the transaction as well as traditional savings accounts, and Office of the Comptroller of the Currency ("OCC"), engaging actively in commercial and consumer lend- and the FDIC on the competitive effects of this proing.31 Thrift institutions in the Columbia market also posal. The Attorney General has indicated that, submaintain on average a significantly higher percentage ject to consummation by NCNB of the proposed of assets in commercial loans and consumer loans than divestitures in the Beaufort County, Darlington thrift institutions generally.32 The Board believes that County, Newberry County and Greenwood County the provision of these products and services by thrifts banking markets, the proposal would not have signifin the Columbia banking market as well as the pros- icantly adverse effects on competition in any relevant pect that these institutions will exercise their existing banking market. Neither the OCC nor the FDIC has authority to expand these activities justify including provided any objection to consummation of this prothrift institutions as full competitors of banks in the posal or indicated that the proposal would have any calculation of market share in this market.33 significantly adverse competitive effects. With thrift deposits weighted at 100 percent, NationsBank would control approximately 25.9 percent Convenience and Needs Considerations of market deposits upon consummation of the proposal. The resulting HHI for the Columbia banking In analyzing the effect of this merger on the convemarket would be 1820, representing an increase of 324 nience and needs of the communities served by NCNB points. However, the Board notes that this resulting and C&S/Sovran, the Board has taken into account the HHI is only slightly above the level of a moderately record of the subsidiary banks of NCNB and C&S/ concentrated market, and there are several mitigating Sovran under the Community Reinvestment Act factors. In particular, twelve commercial banks and (12 U.S.C. § 2901 et seq.) ("CRA"). The CRA renine thrifts would remain as competitors in the market quires the federal financial supervisory agencies to encourage financial institutions to help meet the credit needs of the local communities in which they operate 30. The Columbia banking market is approximated by Richmond consistent with the safe and sound operation of such and Lexington Counties. 31. Thrifts in this banking market offer FDIC-insured transaction institutions. To accomplish this end, the CRA requires accounts, consumer loans, commercial real estate loans and other the appropriate federal supervisory authority to "ascommercial loans, as well as mortgage and home improvement loans. sess the institution's record of meeting the credit 32. On average, commercial loans account for approximately 5.4 percent of the assets of thrifts in the Columbia market, compared to a needs of its entire community, including low- and national average of 2.6 percent of thrift assets. moderate-income neighborhoods, consistent with the 33. The Board has recognized in other decisions that thrifts in safe and sound operation of such institution," and to certain markets compete fully with banks and should be fully weighted in analyzing the competitive effect of bank expansion proposals. See, take that record into account in its evaluation of bank e.g., SCNC; BanPonce Corporation, 77 Federal Reserve Bulletin 43 holding company applications.35 (1991); Fleet Financial Group, Inc., 74 Federal Reserve Bulletin 62 (1988). The Board received one comment asserting that inclusion of thrift deposits in calculating HHI figures in banking markets overemphasizes the competition that thrifts pose to banks and, therefore, thrift deposits should not be accounted for at all in calculating these figures. In particular, this commenter challenged NCNB's assertion that thrifts in Columbia are fully competitive with banks. As noted in this Statement, the Board has reviewed data from thrift institutions in 34. In this regard, the record indicates that per capita income, the Columbia banking market, and has concluded, based on those population per banking office, total deposits per banking office, and data, that thrift institutions are active competitors of banks in provid- total deposits are higher in the Columbia market than in other urban ing the cluster of banking products and services in the Columbia markets in South Carolina. Since 1986, four commercial banks and banking market, and should be weighted fully in determining the one thrift institution have entered the market on a de novo basis. relevant market share in this case. See id. 35. 12 U.S.C. § 2903. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 147 Public Comments on Convenience and Needs (1) the institutions' ascertainment and assessment of the credit needs of minority and low- and moderate- In order to collect information concerning the conve- income communities, small cities and rural areas, nience and needs of the communities to be served by are inadequate;38 the proposed acquisition, including the records of (2) the institutions' efforts to market and advertise performance of the affected institutions under the their products and services, particularly to minori- CRA, and in view of the widespread public interest in ties and to low- and moderate-income communities, the proposal, the Board held public meetings regarding small cities and rural areas, are inadequate; this proposal. These public meetings were held on (3) the institutions fail to offer consumer services October 7-9, 1991, in Richmond, Virginia; Dallas, that meet the credit needs of low- and moderate- Texas; Charlotte, North Carolina; and Atlanta, Geor- income persons and, in particular, charge excessive gia. In addition, the Board provided an extended fees for checking accounts,39 and have an insuffiperiod for interested persons to submit written com- cient number of bank branches in minority and lowments regarding this proposal. Over 100 individuals and moderate-income communities; testified at the public meetings; many of these com- (4) the institutions are failing to meet the housing menters also submitted written comments. Over 50 and small business credit needs of their communiadditional commenters submitted written comments ties, particularly with respect to minorities and lowbut did not appear at the public meetings.36 The Board and moderate-income communities, small cities and has considered all testimony and written comments in rural areas; its evaluation of the convenience and needs factors in (5) 1990 Home Mortgage Disclosure Act this case. ("HMDA") data indicate illegal discriminatory Approximately 60 commenters indicated that the lending practices by the institutions;40 convenience and needs factor warranted approval of this proposal, primarily in light of the CRA performance records of NCNB or C&S/Sovran. These com- 38. Some Protestants alleged that NCNB and C&S/Sovran are not menters noted positive business or community rela- in some instances accurately representing certain aspects of their tionships with the institutions and identified specific CRA programs and performance, including outreach to community groups. NCNB has responded to these comments by providing programs provided by the institutions that benefitted documentation of CRA performance and outreach efforts. The Board the community, including participation in programs to notes that recent regulatory examinations found no evidence of misrepresentations regarding these areas and that NCNB's and C&S/ finance low- and moderate-income housing, provision Sovran's CRA statements generally complied with applicable requireof financial and technical assistance to community ments. The Board has carefully considered these allegations, and organizations, and assistance in community develop- based on all the facts of record, has concluded that they do not warrant denial of the applications. The Board expects that all aspects ment projects. A number of commenters maintained of CRA performance and outreach will be accurately represented in that the merger would result in financially stronger the CRA statements of the NCNB and C&S/Sovran subsidiary banks, and intends to consider this issue in future applications. banks that would be better able to serve their commu- 39. Both NCNB and C&S/Sovran offer a variety of affordable nities. checking and check cashing services. For example, NCNB's Econ- Approximately 100 commenters were critical of the omy Checking product features no required minimum balance, a minimum of $25 to open an account, and nine free checks per month, CRA performance records of NCNB or C&S/Sovran with a monthly service charge of $3. NCNB also offers regular or had concerns relating to the future effects of the checking requiring a minimum of $100 to open an account, free proposed merger (collectively, "Protestants").37 Prot- unlimited checks and no monthly service charge with a minimum $500 balance, and free ATM accessibility on all NCNB machines. NCNB's estants made a variety of claims, including that: basic savings product features a $25 minimum to open an account, no monthly service charge with a minimum $250 balance, free ATM accessibility on NCNB machines, and provides direct deposit services. Further, government check cashing services are available to non-depositors as well as depositors at all NCNB and C&S/Sovran 36. The Board also has considered additional comments filed after branches. the close of the public comment period. Under the Board's rules, the 40. Several Protestants alleged that their individual loan denials Board may in its discretion take into consideration the substance of evidence a failure by the institutions to comply with the CRA. Some such comments. 12 C.F.R. 262.3(e). Protestants alleged that the classification or non-renewal of their loans 37. Several Protestants alleged NCNB and C&S/Sovran have not by NCNB's bank subsidiary in Texas, following NCNB's acquisition employed minorities in decision-making positions. NCNB and C&S/ of the bank subsidiaries of First RepublicBank Corporation, evidence Sovran dispute this allegation, and note that each organization follows a failure by NCNB to meet the credit needs of small businesses a policy of equal employment opportunity throughout their respective throughout Texas. NCNB has provided information regarding these organizations and has directors that reflect racial diversity. While the loan transactions and its role as agent in managing the assets of First Board fully supports affirmative programs designed to promote equal RepublicBank. After careful consideration of the comments and all opportunity in every aspect of a bank's personnel policies and the evidence in the record, including small business and other loan practices in the employment, development, advancement, and treat- programs in which NCNB-TX participates, the Board concludes that ment of employees and applicants for employment, the Board believes these comments do not reflect so adversely on the factors considered that the banks' general personnel practices are beyond the scope of by the Board under the BHC Act as to warrant denial of the factors that may be assessed under the CRA. applications. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

148 Federal Reserve Bulletin • February 1992 (6) the proposal would result in a large centralized CRA Statement provides that a CRA examination is an organization that will reduce activities in, and will important and often controlling factor in the considernot be responsive to, local communities; and ation of an institution's CRA record and that, although (7) the proposal would result in substantial job loss CRA examination reports do not provide conclusive and relocation for the institutions' employees.41 evidence of an institution's CRA record, these reports will be given great weight in the applications process.45 A. CRA Performance Examinations The Board notes that the preliminary results of recently conducted compliance examinations by bank The Board has carefully reviewed the CRA perfor- supervisory agencies have identified areas for immance records of NCNB, C&S/Sovran, and their sub- provement in the otherwise satisfactory CRA perforsidiary banks, the comments and evidence presented at mance of NCNB and C&S/Sovran. In particular, the the public meetings and in written submissions, and preliminary results of these examinations suggested NCNB's responses to those comments, in light of the the need to improve: CRA, the Board's regulations, and the Statement of the (1) documented ascertainment efforts to determine Federal Financial Supervisory Agencies Regarding the the unmet credit needs of all communities; Community Reinvestment Act ("Agency CRA State- (2) involvement at the local level with product ment").42 The Agency CRA Statement provides guid- development and CRA goal setting; ance regarding the types of policies and procedures that (3) systems to analyze and test for geographical the supervisory agencies believe financial institutions distributions of loan application data and the linkage should have in place in order to fulfill their responsibil- between ascertainment efforts, design and marketing ities under the CRA on an ongoing basis, and the of products, and measurement of performance; and procedures that the supervisory agencies will use dur- (4) extended CRA training to include all personnel ing the application process to review an institution's with customer contact. CRA compliance and performance. The Agency CRA Statement explains that decisions by agencies to allow The Board expects NCNB and NationsBank to take financial institutions to expand will be made pursuant to immediate steps to address the regulatory concerns an analysis of the institution's overall CRA perfor- noted in the recently conducted CRA performance mance and will be based on the actual record of examinations. performance of the institution.43 The Board has also considered the individual as- Initially, the Board notes that all of NCNB's eight pects of the CRA programs and records of NCNB and subsidiary banks, as well as C&S/Sovran's subsidiary C&S/Sovran as well as the proposed NationsBank banks, have received a satisfactory rating from their community investment program. primary supervisors during the most recent examination of each bank's CRA performance.44 The Agency B. Corporate Program and Policies Both NCNB and C&S/Sovran and their subsidiary banks have in place the type of policies outlined in the 41. NCNB has indicated that 8,000 to 9,000 personnel reductions Agency CRA Statement that contribute to an effective may occur over a three-year period, in significant part through attrition. NCNB states that NationsBank will offer a variety of CRA program. The NCNB corporate CRA policy sets services to assist employees of the merging institutions whose jobs out CRA-related goals for all NCNB banks, and may be eliminated, including placement services for available posi- NCNB has established comprehensive community detions within NationsBank, outplacement services, and relocation financial assistance. In connection with NCNB's plans concerning the possible consolidation of branch and other facilities, NCNB may be subject in some circumstances to the Worker Adjustment and Retraining Notification Act of 1988 (29 U.S.C. § 2101), requiring advance The OCC has rated the CRA performance of the following C&S/ notice to employees for closings of certain facilities. NCNB has stated Sovran banks as satisfactory as of October 11, 1991: The Citizens and that it and NationsBank will fully comply with the provisions of this Southern National Bank of Georgia, Savannah, Georgia; Sovran/DC statute where applicable and with all requirements of law. National Bank, Washington, D.C.; The Citizens & Southern National 42. 54 Federal Register 13,742 (1989). Bank of South Carolina, Columbia, South Carolina; The Citizens & 43. Id. Southern National Bank of Florida, Fort Lauderdale, Florida; and 44. The OCC has rated the performance of the following NCNB Sovran Bank, N.A., Richmond, Virginia. The FDIC has rated Sovran banks as satisfactory under the CRA as of November 15, 1991: NCNB Bank/Maryland, Bethesda, Maryland, satisfactory during the most National Bank, Atlanta, Georgia; NCNB National Bank of Florida, recent examination of the bank's CRA performance. The Federal Tampa, Florida; NCNB National Bank of South Carolina, Columbia, Reserve Bank of Atlanta has rated Sovran Bank/Tennessee, Nash- South Carolina; NCNB Texas National Bank, Dallas, Texas; Nations- ville, Tennessee, satisfactory during the most recent examination of Bank, N.A., Dover, Delaware; NCNB National Bank of North the bank's CRA performance, and the Federal Reserve Bank of St. Carolina, Charlotte, North Carolina; and NCNB National Bank of Louis has rated Sovran Bank/Kentucky, Hopkinsville, Kentucky, Maryland, Baltimore, Maryland. In addition, the FDIC has rated satisfactory during the most recent examination of the bank's CRA NCNB Virginia, McLean, Virginia, satisfactory during the most performance. recent examination of the bank's CRA performance. 45. 54 Federal Register at 13,745. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 149 velopment programs in each of the states in which it to the local communities in which its banks operate.47 currently operates. The NCNB Community Invest- NCNB has stated that, while broad policy goals will be ment Policy is designed to implement those goals developed through centralized decision-making functhrough initiatives in the following areas: community tions,48 each bank will also establish local goals annuneeds assessment, product development, target mar- ally for the extension of community development keting, internal assessment and review, management credit in each local community served by the bank.49 involvement, employee training, and community edu- NCNB proposes that each bank will define a neighborcation and community economic development activi- hood or geographic region within its community delinties. The C&S/Sovran corporate program includes an eation to receive concentrated emphasis, under the annual review of each bank's CRA statement and a "NationsBank Neighborhood" designation, in the imself-assessment by each bank of its CRA performance plementation of the NationsBank community developto determine whether each bank is addressing its ment program. In addition, under the proposal, each responsibilities to the community under the CRA.46 banking subsidiary will maintain a board of directors As part of their CRA programs, NCNB's and C&S/ CRA Committee which will have ultimate oversight Sovran's boards of directors are involved in formulat- responsibility for community investment strategy and ing policies and reviewing the institutions' perfor- performance and will meet prior to each regularly mance under the CRA. CRA committees of the boards scheduled board of directors meeting to review initiaof directors of NCNB subsidiary banks monitor per- tives and performance measures. NCNB states that a formance under the goals set in the NCNB Community CRA Management Committee will be established for Investment Policy and in the CRA policies of each certain geographic regions currently anticipated to be subsidiary bank. These committees make full reports defined by states. The regional CRA committees are periodically to their respective boards. Reports on intended to serve as a source of strategic direction and CRA developments at all of the NCNB banks are also support to the community investment process and will reported quarterly to the CRA subcommittee of the meet formally on a quarterly basis. parent holding company's board of directors. C&S/Sovran's subsidiary banks have also each es- C. Ascertainment and Outreach Efforts tablished a board of directors' committee to monitor, on an ongoing basis, the CRA performance of the bank NCNB's activities to ascertain the credit needs of the as well as progress in meeting targeted goals. Each communities it serves are formalized in its Community bank's CRA officer reviews quarterly assessments of CRA performance and progress toward meeting established goals for each delineated community and re- 47. Some Protestants have also commented that the proposal would result in fewer branch banking offices and could adversely affect ports the results to senior management of the bank, its senior citizens and minority and low- and moderate-income commuboard of directors, and to the Corporate CRA officer. nities. NCNB states that the NationsBank Branch Opening/Closing NCNB states that NationsBank will adopt a corpo- Policy will at a minimum include the elements governing NCNB's branch policy. NCNB performs periodic analyses of branch disperrate community investment policy statement that will sion to identify underserved areas and to target areas for expansion, combine elements of the existing NCNB and C&S/ and its branch development efforts have emphasized expansion in low- and moderate-income areas. Since January 1990, NCNB has Sovran corporate policies, programs and committargeted for development four branches specifically for low- and ments. The proposed NationsBank Corporate Com- moderate-income areas. Two of these branches have opened, one is munity Investment Policy establishes program goals at under construction, and one site is being acquired. In addition, NCNB assesses the potential impact on the community prior to closing an three levels: national corporate, local community, and office by considering information from members of the community in targeted neighborhoods. order to minimize the adverse impact of an office closing. NCNB's Several Protestants have raised concerns that Na- branch closing policy requires approval from the Community Investment Executive, written notice to the branch's customers at least 30 tionsBank would operate under centralized decision- days prior to the closure and meetings with key neighborhood and making authority away from local bank and branch political leaders to assess the impact of the closure. management and, therefore, would not be responsive 48. Corporate-wide goals setting forth minimum standards will be established for the areas of needs assessment activity, general credit extension, residential mortgage credit extension, program development such as public/private partnerships, business development/ outreach activity such as calls on community development organiza- 46. The C&S/Sovran self-assessment program requires each bank tions, and targeted marketing. to: 49. Under the proposal, each NationsBank subsidiary bank will (1) establish annual CRA goals, with special attention to low- and adopt its own community investment policy modeled on the corporate moderate-income neighborhoods; format. NationsBank will coordinate the review of each subsidiary (2) conduct quarterly evaluations of bank activities in each city, bank's CRA Statement and develop a consistent format subject to county, or region in the bank's delineated service area and evaluate review by the bank's board of directors. NCNB intends that these CRA annually the bank's performance under its CRA goals; and Statements will contain both consistent corporate goals and initiatives (3) conduct an annual geographic analysis of credit applications, as well as unique local programs and initiatives, all of which would be denials and approvals. implemented by each bank according to local community needs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

150 Federal Reserve Bulletin • February 1992 Needs Assessment Initiative Summary. This policy ing and real estate groups and educational organizaincludes: tions. C&S/Sovran mortgage originators also meet (1) an annual survey of government and community with community representatives to discuss low- and leaders, with results compiled on a community basis moderate-income housing needs. Finally, C&S/Sovran and summarized on a statewide basis; officers and directors serve on numerous public and (2) targeted community outreach efforts compiled private sector boards and commissions through which for each community and summarized for each state the credit and banking needs of all segments of the on a quarterly basis; and community may be identified and appropriate re- (3) an assessment survey of individuals in these sponses developed. communities. D. Advertising and Marketing Programs The needs assessment process is the responsibility of the Community Investment Coordinator in the major NCNB maintains a specific marketing program tarmarkets and of the senior banking executive in the geted at reaching low-income and minority consumers. community banks.50 In addition, NCNB maintains The CRA Marketing Plan is created annually, distinct contact with individuals and groups representing civic, from general marketing efforts, and emphasizes spegovernmental, religious, neighborhood, minority, cially targeted media and the need for bilingual adversmall business, and commercial and residential real tising. In certain tracts that need additional emphasis estate development organizations. In 1990, NCNB to advertise services such as Free Checking, Base made over 25,000 calls on minority-owned firms, small Line Checking, Government Check Cashing, and Spebusinesses, community groups and governmental cial Mortgage Programs/Products, NCNB marketing agencies to assess community needs and to market efforts include targeted print media, direct mail, out- NCNB products and services.51 NCNB also spondoor billboard advertising and radio and television sored or participated in more than 170 programs advertising. targeted at educating consumers and small business owners.52 C&S/Sovran conducts regional marketing efforts in response to specific community needs, with targeted C&S/Sovran also ascertains community credit advertising and educational marketing for low- and needs through various means,53 including direct forms moderate-income and minority consumers. C&S/ of community contact. Through its officer call pro- Sovran advertises in local newspapers, on billboards, gram, consumer and commercial officers call on a on radio stations and in civic, school and sports variety of consumer and community organizations, publications in order to communicate information on small and minority business, government agencies, services and products to all members of the commulocal elected officials, non-profit organizations, housnity. C&S/Sovran also makes special efforts to place advertisements in publications directed to minority and low- and moderate-income individuals, including 50. NCNB's state CRA Management Committees and the state minority-owned media and multilingual advertising, in board of director CRA Committees review the results of the needs order to communicate more effectively with targeted assessment process and NCNB's response to the needs identified. 51. NCNB's Mortgage Corporation has established internal goals audiences and to provide information regarding credit regarding calls to brokers and agents operating in or specializing in availability, how to apply for credit, and C&S/ low- and moderate-income areas. That program resulted in 2142 business development calls in 1990. In addition, NCNB's Corporate Sovran's willingness to make loans. Goals statement provides that not less than 10 percent of total business development calls by consumer and commercial units are to be made on minority-owned firms. E. Lending and Other Activities 52. NCNB generally conducts consumer counseling and education programs in conjunction with local community groups. For example, programs are conducted with the Urban League in several markets, NCNB has made a variety of efforts to meet the including Charlotte, North Carolina, Columbia, South Carolina, and housing and other credit needs of communities in Houston and Dallas, Texas. NCNB has other educational program efforts underway in conjunction with ACORN, the NAACP, local which it operates, including low- and moderate- Chambers of Commerce, local churches, and local educational insti- income and minority communities. The NCNB Comtutions and counseling centers. munity Investment Policy states as a corporate goal 53. In selected service areas, C&S/Sovran has instituted an "Adopta-Tract" program as one method of improving its ascertainment the origination of 8 or more CRA loans (defined by efforts, particularly in low- and moderate-income census tracts. Under NCNB as a commercial, consumer or real estate loan this program, the low- and moderate-income census tracts of a made to areas with income levels below 80 percent of particular community are divided into small cluster groups of 4-6 tracts. Specific account officers, crossing functional lines, are assigned the median for the area) per consumer branch per responsibility for these tracts, including community outreach, loan quarter, with goals measured on an aggregate basis for monitoring, and for recommending products or services that will fit the needs of residents of these areas. each state. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 151 NCNB extended over $95 million in mortgage loans Mortgage, which will continue to offer NCNB's comto low- and moderate-income areas in 1990. NCNB munity development products. NCNB plans for Naalso offers various mortgage and residential lending tionsBank, in conjunction with community groups, to products, including products specifically designed for develop and make available nationwide a combination the needs of low- and moderate-income consumers. purchase/rehabilitation single-family mortgage prod- NCNB has developed a Community Investment Mort- uct, which will utilize flexible underwriting and terms gage Product targeted to low- and moderate-income similar to the Community Investment Mortgage Prodfamilies, which features flexible underwriting guide- uct.56 NCNB also plans for NationsBank to offer lines that allow the use of non-traditional sources of consumers in low- and moderate-income categories income and credit history and the waiver of origination home improvement financing products for expansion, and point fees. In order to provide flexibility with renovation, or improvement of a home.57 In addition, respect to this product, NCNB has committed to hold the proposed NationsBank community investment these mortgages in its own portfolio and not to sell program contains policies for the implementation of them in the secondary market. NCNB also offers FHA special products for affordable multi-family residential and VA mortgage products and FHA Title I Home lending, small business lending, and rural and agricul- Improvement Loans. NCNB Mortgage Corporation's tural lending. funding of FHA-insured and VA-guaranteed programs The NationsBank community investment policy, increased from $87 million in 1988 to $267 million in program, and strategic plan contain other elements of 1990. an effective CRA program, as outlined in the Agency NCNB also participated in 29 multi-bank loan pools CRA Statement. These community development initidesigned to make credit more accessible to low- and atives include: moderate-income consumers and small businesses in (1) providing economic development loans, includ- 1990 and currently participates in over 200 public/ ing loans to non-profit and government agencies and private partnerships emphasizing innovative tech- other programs serving low- and moderate-income niques for meeting local housing, small business and neighborhoods, and loans made under mortgage education credit needs.54 NCNB has designed a vari- bond programs and multi-bank loan pools; ety of products for the small business market, includ- (2) providing affordable depository and transaction ing Small Business Administration ("SBA") lending services, including "lifeline" checking products and products and a lending product for minority subcon- government check cashing services; and tractors. NCNB is involved with the SBA in improving (3) participating in and sponsoring educational and the delivery of government-guaranteed loans to small counseling programs for consumers and small busibusinesses and the Farmers Home Administration in nesses in conjunction with local and national comits guarantee and subordination programs for small munity-based organizations. farms.55 NCNB also supports small businesses through its investment in community development F. CRA Activities in Selected States corporations. In addition, NCNB intends for Nations- Bank to provide below-market interest rate loans for Community investment activities and initiatives for day care centers. NCNB and C&S/Sovran in each state have also been NCNB states that NationsBank will establish a reviewed in light of the comments received by the residential mortgage lending goal at a level no less than Board. The following discussion provides examples of NCNB's existing goal and will conduct single-family programs initiated in certain states by NCNB and mortgage lending primarily through NationsBank C&S/Sovran. North Carolina. NCNB's 1990 CRA record reflects a significant number of CRA-related activities and 54. Examples of these programs include the Tampa Challenge Fund, initiatives in North Carolina by NCNB-NC. These Homes for South Florida, Central Florida Community Reinvestment activities include: Funds, and First Housing Development Corporation in Florida; the Charlotte/Mecklenburg Housing Partnership, Greensboro Community Home Lending Program, and Wilmington Housing Partnership in North Carolina; the Spartanburg Residential Mortgage Pool and Greenville West Brandon Neighborhood Project in South Carolina; 56. NCNB intends to have this product fully operational and the Dallas Affordable Housing Partnership, Houston Affordable available within 18 months after the consummation of the proposed Housing Partnership, and Midland Housing Partnership in Texas; and transaction. the Baltimore Regional Community Development Corporation in 57. NCNB states that specific features of the home improvement Maryland. product will include: flexible underwriting criteria, a loan/value ratio 55. NCNB's South Carolina bank is a preferred lender with the of up to 80 percent, extended terms, and no title search requirement SBA. In addition, lending to agricultural and rural markets will be a for loans under $5,000. This product has been designed to permit the targeted lending area under the NationsBank Community Investment use of government or other programs that provide equity grants or Program. subordinated financing. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

152 Federal Reserve Bulletin • February 1992 (1) extension of approximately $70 million in new Texas. NCNB-TX implements the NCNB CRA procommunity development, consumer, and mortgage gram in Texas. That program includes the following loans; activities and initiatives by NCNB-TX: (2) participation in 16 public/private partnerships (1) extension of approximately $389 million in new designed to make banking services more accessible consumer, small business and community developto low- to moderate-income consumers and small ment loans in low- and moderate-income areas; businesses, and commitments of $10.3 million to (2) participation in 123 public/private partnerships programs including the Charlotte-Mecklenburg designed to make banking services more accessible Housing Partnership, the Asheville-Buncombe to low- to moderate-income consumers and small County Minority Business Loan Pool and the businesses; Greensboro Community Home Lending Program; (3) an active call program for minority-owned firms (3) participation in nine multi-bank loan pools in- and small businesses to assess community needs volving funding commitments by NCNB-NC of $7.2 and market NCNB products and services; and million to address affordable housing needs, small (4) participation in four multi-bank loan pools with business loans, downtown redevelopment, creation an aggregate funding commitment by NCNB-TX of of a small business "incubator" and similar pro- $18 million for affordable housing programs. grams; (4) commitment of $4 million to mortgage bond NCNB-TX has responded to identified community programs for affordable local housing; and credit needs by participating in the Dallas Affordable (5) outreach efforts that included 397 calls on minor- Housing Partnership, the Houston Housing Partnerity-owned businesses and community groups to as- ship, and the Midland Economic Development Comsess community needs and to market NCNB-NC's pany.62 In response to comments regarding NCNBproducts and services, and 163 meetings with com- TX's small business lending, the bank has taken steps munity groups, agencies and local government offi- to increase its SBA lending program by establishing cials to discuss community needs assessment. small business lending centers in major markets.63 Virginia. NCNB-VA has engaged in outreach efforts NCNB-NC also developed a home purchase mort- to various governmental, business and community gage loan designed to make home purchase credit groups and participated in community development more available throughout its communities, including lending activities consistent with its asset size.64 In low- and moderate-income areas. In addition, addition, NCNB-VA's board of directors has adopted NCNB-NC engaged in capital lending and credit edu- a formal CRA program and appointed a community cation for small businesses controlled by minorities reinvestment oversight committee to monitor its CRA and women.58 NCNB-NC also markets and advertises programs and initiatives.65 its products through a program designed to reach all The CRA program implemented by Sovran-VA insegments of the community, including low- and mod- cludes oversight by the board of directors and central erate-income areas.59 NCNB-NC uses its community coordination through a community reinvestment ofdevelopment corporation ("CDC") to promote com- fice.66 Sovran-VA also has an active officer call promunity growth and development, particularly in Char- gram and a comprehensive plan to market its products lotte and Raleigh,60 and NCNB works with several and services throughout all segments of its delineated organizations to address to some extent the credit community. Sovran-VA employs focus groups to obneeds in rural and small markets.61 Association of CDCs (an association providing financial assistance to 58. NCNB-NC has a small business call program, including targeted its 14 CDC members to help carry out economic development calls on minority-owned firms, and also participates in the Business projects, with an emphasis on projects for rural areas). Consortium Fund which provides minority-owned businesses with 62. NCNB-TX has also participated in the Austin Double Down contract financing to fill purchase orders. Program for lower income home buyers, the Southern Oaks Afford- 59. NCNB-NC supplements traditional media communications, able Housing program in the Oak Cliff section of Dallas, and the including newspapers, radio, brochures, pamphlets, and billboards, Tarrant County Affordable Housing Partnership. with personal outreach efforts by bank officers, employees and 63. The center in San Antonio is operating, and other centers are directors. currently at the staffing and implementation stage. 60. These projects include Greenville Affordable Housing in Char- 64. NCNB-VA has assets of $8 million as of June 1991. lotte and Downtown East Redevelopment Area in Raleigh. Both 65. NCNB-VA's entry into northern Virginia has been recent, and projects provide new housing for low- and moderate-income residents. it has not yet fully implemented its planned marketing and advertising 61. These organizations include the Community Investment Corpo- campaigns. ration of North Carolina (a state CDC specializing in multi-family 66. Sovran-VA has also established 50 advisory boards statewide, lending for rural and small markets), the North Carolina Enterprise consisting of approximately 500 members. These boards have a Corporation (a Small Business Investment Corporation providing racially diverse membership that includes business owners, religious mezzanine financing for rural businesses) and the North Carolina leaders, and community organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 153 tain feedback on current or proposed bank products, which offers reduced rate mortgage loans to low- and and conducts educational seminars for consumers. moderate-income individuals who might not qualify In 1990, Sovran-VA introduced several programs for conventional mortgage financing. C&S-GA has emphasizing small business lending in low- and mod- committed approximately $5 million to AMC's loan erate-income communities.67 Sovran-VA and its mort- pool.71 In addition, C&S-GA participates in the Atgage subsidiary, Sovran Mortgage Company, ex- lanta Equity Fund ("AEF"), which was established to tended on a state-wide basis 18 percent of its assist in meeting the need for multi-family housing.72 mortgages and 20 percent of its home improvement C&S-GA also works with the Housing Resource Cenloans in low- and moderate-income neighborhoods.68 ter to support affordable housing. In Savannah, In addition, Sovran-VA's CDC participates in pro- C&S-GA participated with the Community Housing grams designed to revitalize low- and moderate-in- Services Agency in a $1.1 million loan to renovate 49 come areas.69 low-income rental units.73 Georgia. C&S-GA's participation in community de- Florida. NCNB-FL has engaged in a variety of velopment and redevelopment programs throughout CRA-related activities, including: the state is substantial. In addition, C&S-GA plans to (1) extension of more than $35.5 million in mortgage implement an automated system for tracking the geo- loans in low- to moderate-income areas; graphic distribution of its loan applications and denials. (2) commitments of $10 million to the Florida State Outreach efforts to minority organizations have as- Bond Issue to provide mortgage financing to low- to sisted C&S-GA in identifying and meeting the need for moderate-income families; and educational programs for minority small business own- (3) participation in 25 public/private partnerships ers.70 As a result, C&S-GA has developed a program to designed to make banking services more accessible sponsor small business seminars targeted to the minority to low- to moderate-income consumers and small community, including communities in Atlanta, Savannah businesses by committing more than $26 million to and other areas. C&S-GA is also conducting a direct mail programs, including First Housing Development campaign to targeted low- and moderate-income census Corporation, Homes for South Florida, Central tracts in order to increase its market penetration in those Florida Community Re-Investment and Tampa areas after reviewing 1989 lending results. Challenge Fund. C&S-GA and other local financial institutions have created the Atlanta Mortgage Consortium ("AMC") NCNB-FL also maintains extensive contact with a variety of community members to determine community credit needs and to develop products that satis- 67. Under Sovran-VA's small business specialist program (targeting factorily address those needs. In addition, NCNB-FL companies with annual sales under $1 million), 30 business centers participates in community development and redevelassisted in generating approximately $47 million in loans in 1990. A similar program focusing on businesses with annual revenues under opment projects. The following are examples of the $10 million generated $59 million in loans in 1990. Sovran-VA also had types of projects in which NCNB-FL has participated $18 million in loans to farmers outstanding as of December 31, 1990. throughout Florida: 68. As of December 31, 1990, Sovran-VA and Sovran Mortgage Corporation originated 7,829 housing-related loans totalling $461 (1) Hillsborough County—City of Tampa Challenge million. In April 1991, Sovran began offering its Home Mortgage Edge Fund II (financing for rehabilitation housing in lowprogram that provides closing costs assistance to low- and moderateand moderate income areas) and First Housing income first-time home buyers. Sovran-VA has committed $10 million to this program for 1991 and has promoted the program through Development Corporation (construction and rehanewspaper advertisements, seminars, targeted mailings and meetings with realtors. Sovran-VA also actively participates in a variety of governmentally subsidized, guaranteed, or insured loan programs. One Protestant argued that low-income individuals may not be benefiting significantly from the Home Mortgage Edge program. This 71. Since 1988, AMC has made over 600 loans totalling over $30 million program has a maximum income eligibility requirement for borrowers, to home buyers in low-income neighborhoods in the Atlanta area. and Protestant acknowledges that moderate-income, and some low- 72. Some Protestants have criticized the funding and progress made income individuals, would benefit from this program. Even if the by this program. The Board notes that the AEF is one of a number of allegation is correct that moderate-income and, only to a lesser extent, programs in which C&S/Sovran participates in an effort to help meet low-income individuals, benefit from this program, the Board notes that the credit needs of the Atlanta community. The Board also notes that the CRA seeks to encourage lending in both low- and moderate-income C&S/Sovran has continued its commitment throughout the developareas, and that this program is only one of a number of programs in ment of the AEF from the formation of its structure to its corporate which Sovran-VA participates as a means of helping to meet the credit fund raising. Recently, the City of Atlanta and the Atlanta Chamber of needs of various segments of Sovran-VA's community. Commerce have made a major commitment to sponsor the AEF, and 69. Sovran-VA also has a sponsorship role in the Virginia Economic the Enterprise Foundation has pledged to invest up to $1 million in the Development Corporation, which promotes economic development of AEF to match corporate investment commitments. depressed rural areas. 73. Some Protestants questioned C&S-GA's branch closing policy. 70. These organizations include the National Association for the Under C&S-GA's written policy covering branch closings, reductions in Advancement of Colored People, the Southern Christian Leadership service, and changes in hours, C&S-GA discusses the changes with Council, the Atlanta Business League, and minority leaders within community leaders, assesses the impact of the changes, and attempts to Georgia communities. minimize the adverse effects of these changes on the communities served. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

154 Federal Reserve Bulletin • February 1992 bilitation of low- to moderate-income multi-family (3) commitments of more than $897,000 to mortgage rental housing projects); bond programs advancing affordability in local hous- (2) Pinellas County—ACTION Fund (low interest ing; home rehabilitation loans with lower closing costs (4) commitments of $39.1 million to the South Caroand flexible underwriting criteria for low- and mod- lina Student Loan Corporation for the 1990-91 erate-income families); school year; (3) Dade County—Homes for South Florida (financ- (5) small business loans as a preferred lender desiging for affordable housing developments in South nated by the Small Business Administration; and Florida); (6) contributions of more than $830,000 to not-for- (4) Orange County—Central Florida Community profit organizations, with emphasis on those that Reinvestment Corporation (loan pool for financing support housing, education, small business or ecolow- to moderate-income housing, including single nomic development. family homes, apartments and condominiums); and (5) Sarasota County—Downtown Venice Associa- NCNB-SC offers to low- and moderate-income pertion (redevelopment loans to small businesses in sons a variety of loan products and services through downtown Venice).74 the bank and its affiliate, NCNB Mortgage Corporation.76 In addition, NCNB-SC's advertising program C&S-FL has taken steps to address specifically includes a marketing program targeted at low- and identified credit needs of its communities, including moderate-income neighborhoods. NCNB-SC particilow- and moderate-income areas, through special pro- pates in a full array of community development and grams. For example, C&S-FL has developed two redevelopment programs, including government and special home improvement products targeted to low- private sector projects that promote economic revitaland moderate-income areas. In addition, C&S-FL has ization and growth.77 created an Enterprise Banking Division to target the C&S-SC also offers a variety of loan products deneeds of small businesses. This division also coordi- signed to meet the needs of its communities. For nates other government funded programs in which the example, C&S-SC has developed a home improvebank participates. C&S-FL's bank officers actively ment program call "Homeline" that may be used to participate in various CDCs across the state, and the finance the alteration, repair, conversion, or modernbank has participated in several consortiums designed ization of an existing owner-occupied, single-family or to rehabilitate or provide affordable housing, including duplex dwelling for lower-income individuals. In addithe Dunbar Industrial Action Development and the tion, C&S-SC is actively involved in community de- Southwest Florida Coalition for Affordable Housing. velopment programs. South Carolina. NCNB-SC has implemented its Tennessee. Sovran-TN's CRA program includes a CRA program through participation in a variety of community reinvestment department to provide direct programs, including: contact with members of the community, government (1) extension of approximately $69 million in com- officials, and community-based organizations in order munity development loans, mortgage loans and con- to ascertain the credit needs of Sovran-TN's commusumer loans; nities.78 Sovran-TN has organized a marketing pro- (2) participation in six public/private partnerships75 gram and also developed an extensive officer call and commitments of more than $1.8 million to fund program for all small business lending officers, with programs, including the West Brandon Neighbor- special emphasis on identifying the credit needs of hood in Greenville and the Residential Mortgage Pool in Spartanburg; 76. In 1990, NCNB-SC and NCNB Mortgage Corporation made 159 housing-related loans totalling $3.5 million to persons of low- and moderate-income, representing 15.4 percent of all mortgage lending 74. Some Protestants raised issues regarding NCNB-FL's branch by these institutions in the state. NCNB-SC has also developed a closing policies. NCNB-FL has established a written policy that special mortgage program to meet the credit needs of low- and provides guidelines for opening and closing branches, taking into moderate-income borrowers, including a program that provides for a consideration the impact on low- and moderate-income neighbor- lower downpayment and a more liberal debt/income ratio. In addition, hoods and input from neighborhood leaders. In response to a com- NCNB-SC has a total of $55 million of consumer loans outstanding in ment regarding the closing of its branch in Sulphur Springs, Florida, low- and moderate-income communities. NCNB explained that a fire in the building resulted in structural 77. In 1990, NCNB-SC and NCNB Mortgage Corporation origidamage that was too extensive to economically rehabilitate. Accord- nated $7.4 million in FHA and VA home loans. In addition, NCNB-SC ing to NCNB, customer records for this branch were transferred to a has $10.8 million in outstanding SBA loans and a total of $5.4 million branch located within approximately one mile of the damaged branch. in agricultural loans. 75. The primary focus of these private/public partnerships is to 78. The credit needs of Sovran-TN's communities are monitored by make affordable housing loans through a combination of bank financ- a CRA Steering Committee which, in turn, receives input from five ing and funds from private or public entities. regional CRA committees. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 155 businesses serving low- and moderate-income areas community, including low- and moderate-income arthrough products, services and employment. The eas, and to convey a recommendation to the Council board of directors of Sovran-TN participates in the of the District of Columbia ("Council") based on this formulation of CRA policies and reviewing the bank's assessment. In carrying out its responsibility to conperformance. Sovran-TN actively supports partner- sider fully the Superintendent's recommendation, the ships with government and non-profit organizations Council held a public hearing in the District and involved in affordable housing and economic develop- reviewed the CRA performance of Sovran-DC and the ment. For example, in the Nashville area, Sovran-TN CRA performance plan of NCNB. Based on this participates in a consortium of 10 banks in providing review, the Council approved NCNB's acquisition of funding for the Metropolitan Development Housing Sovran-DC.81 Authority to build affordable housing, and has committed $2.5 million to Affordable Housing of Nash- G. HMDA Data and Lending Practices ville's revolving loan fund. Sovran-TN also supports the Chattanooga Neighborhoods Enterprise program The Board has reviewed the 1990 HMDA data refor low- and moderate-income housing, and in the ported by NCNB and C&S/Sovran. Recent amend- Memphis area, actively lends to the Facility Develop- ments to the HMDA for the first time require banking ment Corporation for financing its affordable housing organizations to collect certain information regarding development program. applicants for bank mortgage loans and to report the District of Columbia. Sovran-DC has activities to information regarding both loan approvals and denials ascertain the credit needs of its communities79 and to the banking agencies and the public. The informa- CRA performance is a regular consideration in its tion includes data on the race, gender and income of board of directors planning and review process. individual applicants, in addition to the location of the Sovran-DC's marketing programs, including adver- property securing the potential loan and the dispositisements targeted for low- and moderate-income ar- tion of the application. eas, inform all segments of its communities on the NCNB's 1990 HMDA data show rates for housing financial products and services offered by the bank. loan approvals and denials that vary for different These products include a variety of loans designed to groups when compared by income levels or by race or meet the needs of small businesses and individuals.80 national origin. As a general matter, NCNB's housing- NCNB has also targeted $140 million over a 10-year related loan denial rates were greater for minority loan period for community development lending in the applicants as compared to non-minority applicants in a District of Columbia market. This program envisions substantial number of NCNB's service communities. the offering of a variety of credit products, including On the basis of these data, several Protestants have flexible credit terms, flexible underwriting standards, alleged illegal discriminatory lending practices by and pooling of credit resources. NCNB intends to NCNB and C&S/Sovran.82 In addition, several Protdirect this program toward low- and moderate-income estants contend that these data demonstrate areas of communities and other markets that have been histor- weakness in the loan penetration by these institutions ically underserved. in low- and moderate-income neighborhoods. The Board notes that the District of Columbia All banks have an obligation to ensure that their Superintendent of Banking and Financial Institutions lending practices are based on criteria that assure safe ("Superintendent"), is charged under the laws of the and sound lending and equal access to credit for District to assess the impact of proposed acquisitions creditworthy applicants regardless of gender, race or on the availability of credit to all segments of the national origin. The Board is concerned when the lending record of an institution indicates disparities in 79. Sovran-DC identifies community credit needs through contacts made by bank officials with a variety of individuals, community 81. The Superintendent noted a concern that lending decisions groups, government representatives and private and non-profit devel- continue to be made locally following this acquisition, and that opers. Sovran-DC has also formed a committee of local District of Sovran-DC's management reflect a representation of local interests. Columbia residents and community leaders to advise it on community NCNB stated in hearings held by the District of Columbia government needs. that lending decisions up to Sovran-DC's authorized lending limit of 80. Sovran-DC has identified affordable housing and small business $50 million will be made locally. In addition, NCNB's senior managelending as primary credit needs in the community. With the District of ment is currently evaluating potential local candidates for corporate- Columbia Department of Housing and Community Development, level as well as bank-level (including Sovran-DC) boards of directors. Sovran-DC has developed an affordable mortgage loan program that NCNB also intends to maintain a citizens advisory body comparable permits individuals with certain income levels to use government to Sovran-DC's current citizens advisory board. subsidies to purchase homes within the District of Columbia. 82. Protestants' allegations of illegal discrimination concern NCNB Sovran-DC has committed $10 million to this program. In addition, and C&S/Sovran HMDA data for particular communities in various Sovran-DC offers SBA loans and currently has a number of small states, including Florida, Georgia, North Carolina, South Carolina, business loans outstanding. Texas, and Virginia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

156 Federal Reserve Bulletin • February 1992 lending to minority applicants. The Board also recog- level of funds to be lent in any community or region. nizes that HMDA data provide only a limited measure Lending areas to be targeted under the program inof any given institution's lending in the communities clude single-family residential mortgage, home imserved, and that HMDA data have limitations that provement, combination rehabilitation/mortgage fiprovide an inadequate basis, absent other information, nancing, and multi-family affordable housing; small for determining whether an institution has engaged in business emphasizing the needs of minority-owned illegal discrimination on the basis of gender, race or small businesses and agriculture/rural markets; and national origin. general consumer lending. As part of this program, The most recent examinations for CRA compliance NationsBank intends to utilize flexible credit terms conducted by bank supervisory agencies found no and flexible underwriting standards. evidence of illegal discrimination or other illegal credit Several commenters requested that a mechanism be practices in any subsidiary banks of NCNB or C&S/ established to ensure effective monitoring of the pro- Sovran. In the case of NCNB's seven subsidiary posed NationsBank CRA program and lending goal. In national banks, the OCC reviewed and sampled loan particular, some commenters stated that NCNB documentation for loans granted as well as loans should be required to incorporate input from members denied in light of the 1990 HMDA data. of the communities to be served by NationsBank in the NCNB has also taken steps designed to improve its decision-making process for allocating the $10 billion, lending to minorities and low- and moderate-income 10-year lending goal and recommended that this goal neighborhoods. For example, NationsBank and Asso- be monitored by a community-based task force in ciation of Community Organizations for Reform Now addition to regulatory oversight. ('ACORN") have agreed to establish a program to The NationsBank Community Investment Program provide loans, counseling, consumer education, and contains elements designed to assess and monitor the housing opportunities to low- and moderate-income and local impact of the lending target. NCNB intends to minority communities. Under this program, ACORN assure the local impact of the lending goal through a will have special loan counseling offices for low- and combination of the NationsBank corporate goals, local moderate-income home buyers in Texas and Washing- community goals to be established based on local ton, D.C. Participants will receive loan counseling, needs assessment analyses, the concept of neighborattend budgeting and homeownership workshops, and hood targeting, and the incorporation of ideas solicited qualify to obtain mortgage interest rates one point from the local community. below market. In addition, loan approval standards will In each local community, NationsBank will define a assess the creditworthiness of low- and moderate-in- neighborhood or geographic region within its commucome home buyers under criteria which include: nity delineation to receive concentrated emphasis in (1) alternate sources of income such as part-time the delivery of the NationsBank Community Developjobs, self-employment and voluntary child support; ment Program. The targeting of "NationsBank Neigh- (2) credit histories of paying rent and utilities; and borhoods" will supplement the NationsBank local (3) third- party contributions toward settlement community goals and initiatives. Progress in the tarcosts and downpayments. geted neighborhoods will be specifically monitored in addition to NCNB's local, state, and national perfor- NCNB currently participates in a variety of local mance measurement.83 NCNB states that it will moncommunity credit counseling programs and proposes itor its performance in meeting the lending target to expand those activities through the development of through internal geocoding systems. Performance reprograms that will coordinate and expand upon the sults will be published as part of local CRA Statecounseling efforts of local organizations. NCNB also ments, at the county and MSA levels, no less than states that NationsBank will recognize participation in annually, and will be reviewed quarterly for internal credit counseling programs as an offset for weakness purposes. The availability of results will be announced in a loan applicant's credit history. publicly, and a breakdown by loan type will be pro- NationsBank Community Investment Program also vided. In addition, performance reports will be made a contains a $10-billion, 10-year commitment to commu- part of the NationsBank quarterly and annual reports. nity-development lending in the banking markets served by NationsBank. Loans made under this program will be made for the purpose of extending credit to economically underserved areas, low- and moder- 83. NCNB states that performance oversight will be the responsiate-income consumers, and small businesses. NCNB bility of the NationsBank boards of directors CRA committees, the has stated that the $10 billion lending target is struc- state CRA management committees, the president of the bank, the principal community investment officer, and the community investtured as a minimum, and there will be no limit on the ment coordinators. 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Legal Developments 157 These mechanisms established by NCNB are de- initiatives of NCNB and C&S/Sovran and to address signed to assure local input and accountability in weaknesses in the CRA performance record of NCNB carrying out this lending program, while leaving flex- and C&S/Sovran that have been described by comibility to respond to the different types and level of menters and in the examination process. credit needs in different communities. The efforts by In this light, after carefully considering all the facts of NationsBank to implement this program will be mon- record, including the testimony at the public meetings, the itored by the federal banking agencies through the comments received, and relevant examination reports, examination process and will be taken into account in the Board concludes that, on balance, the convenience future applications by NationsBank to expand its and needs considerations, including the CRA records of deposit-taking facilities. performance of NCNB and C&S/Sovran, are consistent with approval of these applications. The Board expects H. Conclusion Regarding Convenience and NCNB to implement fully its CRA initiatives announced Needs Factors for NationsBank and to continue to improve its CRA performance, including its housing-related lending, and to In considering the overall CRA performance records implement immediately steps to address areas for imof NCNB and C&S/Sovran and the effect of the provement noted in its CRA performance examinations. proposal on the convenience and needs of the commu- The Board will consider the progress made in these areas nities served by these institutions, the Board has in future applications by NationsBank.84 carefully considered the entire record, including the substantial public comment in this case. The Board Acquisition of Nonbanking Companies notes that a number of commenters raised both specific and general concerns about the adequacy of NCNB has applied under section 4(c)(8) of the BHC existing CRA programs in certain areas. Other com- Act to acquire the nonbanking subsidiaries of C&S/ menters indicated that these programs were very pro- Sovran. The Board has determined by regulation or ductive in their community and expected that the order that each of the activities of these companies is proposed merger would add financial strength to these closely related to banking and generally permissible existing programs. Based on a review of the entire for bank holding companies under section 4(c)(8) of record of performance, including information provided the BHC Act, and has approved applications by C&S/ by the commenters, the Board believes that the efforts Sovran to own shares in each of these companies.85 made by NCNB and C&S/Sovran to meet the credit NCNB has committed to abide by all of the parameneeds of all segments of the communities served by ters, conditions and commitments relied on by the these banks, including low- and moderate-income Board in the relevant orders and regulations regarding neighborhoods, are substantial and, on balance, satis- these companies. factory. This conclusion is confirmed by the most NCNB operates subsidiaries engaged in nonbanking recent CRA-examination reports for the subsidiary activities that compete with many of the nonbanking banks of NCNB and C&S/Sovran. The Board recognizes, however, that there are areas of 84. Several Protestants have requested that the Board hold a formal weakness in the CRA programs established by NCNB public evidentiary hearing on the application. Generally, under the and C&S/Sovran. As indicated in its $10 billion lending Board's rules, the Board may, in its discretion, hold a public hearing program, NationsBank will expand existing programs and or meeting on an application to clarify factual issues related to the application and to provide an opportunity for testimony, if appropriimplement other initiatives targeting affordable housing, ate. 12 U.S.C. §§ 263.3(e) and 262.25(d). some of which have been discussed in this Statement, to The Board has carefully considered requests for a formal public hearing in this case. The Board has provided an extended period for improve the lending patterns reflected in the 1990 HMDA public comment in this case, permitting interested persons a substandata. These initiatives — in the areas of innovative prod- tial period to provide written comments, and commenters have uct development, proactive consumer education and submitted substantial written and oral comments that have been considered by the Board. The Board also notes that it held four public counseling, branch development, targeted marketing, and meetings on this application. The Protestants requesting a formal participation in public/private partnerships and non-tradi- public evidentiary hearing have indicated general disagreement regarding the appropriate conclusions to be drawn from the facts of tional ways of serving low-income and minority credit record, but have not identified facts that are material to the Board's needs — are designed to increase housing-related and decision and that are in dispute. In light of this, the Board has other types of credit by geographic area and among determined that a public hearing is not necessary to clarify the factual record in these applications, or otherwise warranted in this case. demographic sectors of the communities served by these Accordingly, these requests for a formal public hearing on this institutions. application are hereby denied. The Board believes that these initiatives, and other 85. The Board previously approved the acquisition by C&S/Sovran of C&S and Sovran and all of the banking and nonbanking subsidiaries steps proposed by NCNB, will help NationsBank to of both C&S and Sovran. C&S/Sovran Corporation!Avantor Finandraw on the corporate programs and existing CRA cial Corporation, 76 Federal Reserve Bulletin 779 (1990). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

158 Federal Reserve Bulletin • February 1992 subsidiaries of C&S/Sovran. In each case, the markets acquisition by C&S/Sovran.88 The Insurance Subsidiarfor these nonbanking services are unconcentrated and ies will remain separate subsidiaries of NationsBank, there are numerous providers of these services. In and the grandfathered insurance activities of the Insurlight of these facts and the shares of each of these ance Subsidiaries will not be conducted by any of markets controlled by NCNB and C&S/Sovran, the NationsBank's other subsidiaries. For the reasons Board concludes that consummation of this proposal stated in the Board's previous orders regarding the would not have a significantly adverse effect on com- Insurance Subsidiaries and in the Board's Sovran decipetition for these services in any relevant market. sion, the Board has determined that the Insurance There is no evidence in the record to indicate that Subsidiaries may continue to engage in insurance activapproval of the proposed acquisition of shares of any ities pursuant to Exemption D following the acquisition of the nonbanking companies of C&S/Sovran, within of these subsidiaries by NCNB.89 the parameters, conditions and commitments relied on Export Trading and Edge Act Companies. The by the Board in its orders governing these companies, Board has also considered NCNB's proposal to would result in any significantly adverse effects, such acquire Commerce Trading Corporation pursuant as undue concentration of resources, decreased or to section 4(c)(14) of the BHC Act (12 U.S.C. unfair competition, conflicts of interests, or unsound § 1843(c)(14)), and to acquire indirectly the shares of banking practices that are not outweighed by public Citizens and Southern International Bank and Citibenefits. Accordingly, the Board has determined that zens and Southern International Bank of Atlanta the balance of public interest factors that the Board under the Edge Act. After consideration of all the must consider under section 4(c)(8) of the BHC Act is factors specified in the Board's Regulation K and favorable and consistent with approval.86 based on all of the facts of record, the Board has Insurance Agency Subsidiaries. NCNB has also re- determined that disapproval of these proposed inquested Board approval to permit Citizens and South- vestments is not warranted. ern Insurance Services, Inc., C&S/Sovran Insurance Services, Inc., and Sovran Insurance Inc., (the "Insur- Conclusion ance Subsidiaries") to continue, following acquisition of these companies by NCNB, to conduct insurance Based on all of the facts of record, including the agency activities pursuant to section 4(c)(8)(D) of the commitments made by NCNB in this case, and for the BHC Act ("Exemption D").87 The Board has previ- reasons discussed in this Statement, the Board has ously determined that the Insurance Subsidiaries were determined that the applications should be, and hereby entitled to the privileges of Exemption D after their are, approved. As noted in the Board's Order in this case, the Board's approval is expressly conditioned upon compliance with the commitments made by 86. NCNB has also applied to merge its securities subsidiary, NCNB in connection with these applications, includ- NCNB Capital Markets, inc., with C&S/Sovran's securities subsid- ing the commitments to divest certain bank offices, iary, Sovran Investment Corporation, under the name NationsBank and the commitments and initiatives relating to its Capital Markets, Inc. ("NCMI"). NCNB Capital Markets, Inc., and Sovran Investment Corporation engage in substantially the same performance under the Community Reinvestment Act. securities activities, including limited securities underwriting and The determination as to the nonbanking activities dealing activities. See NCNB Corporation, 75 Federal Reserve Bulleapproved in this case is also subject to all of the tin 520 (1989); NCNB Corporation, 76 Federal Reserve Bulletin 864 (1990); Sovran Financial Corporation, 76 Federal Reserve Bulletin conditions contained in Regulation Y, including those 256 and 857 (1990). NCNB has committed that the activities of NCMI in sections 225.4(d) and 225.23(b)(3) (12 C.F.R. will be conducted pursuant to the commitments made by NCNB and Sovran as well as the conditions and limitations imposed by the Board 225.4(d) and 225.23(b)(3)), and to the Board's authorin the Orders approving these activities. ity to require such notification or termination of the 87. 12 U.S.C. § 1843(c)(8)(D). Exemption D permits a bank holding company to engage in "any insurance activity which was engaged in by the bank holding company or any of its subsidiaries on May 1, 1982." Such activities may be conducted in the grandfathered com- 88. See C&S/Sovran Corporation, 76 Federal Reserve Bulletin 853 pany's home state, states adjacent thereto, or any state where the (1990). C&S/Sovran Insurance Services, Inc., was known at that time company was authorized to operate an insurance business before the as "Sovran Insurance Agency, Inc." grandfather date. The Board has previously determined that an 89. Pursuant to Exemption D, the insurance agency activities of insurance agency which is entitled to continue to sell insurance under Citizens and Southern Insurance Services, Inc., may be conducted Exemption D does not lose its grandfathered rights if the agency is only in Georgia, states adjacent to Georgia, or states in which this acquired by another bank holding company, provided the agency company lawfully engaged in insurance activities on May 1, 1982; the maintains its separate corporate structure and its insurance activities insurance agency activities of Sovran Insurance, Inc., may be conare not extended to other subsidiaries within the acquiror's organiza- ducted only in Maryland, states adjacent to Maryland, and states in tion. Sovran Financial Corporation, 73 Federal Reserve Bulletin 672 which this company lawfully engaged in insurance activities on May 1, (1987) ("Sovran"). This determination has been upheld by the courts. 1982; and the insurance agency activities of C&S/Sovran Insurance National Ass'n of Casualty and Surety Agents v. Board of Governors, Services, Inc., may be conducted only in Virginia, states adjacent to 856 F.2d 282, reh'g denied en banc, 862 F.2d 351 (D.C. Cir. 1988), Virginia, or states in which this company lawfully engaged in insurcert, denied, 490 U.S. 1090 (1989). ance activities on May 1, 1982. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 159 activities of a holding company or any of its subsidiar- commercial banking organizations in the state. Upon ies as the Board finds necessary to assure compliance consummation of this proposal, NationsBank would with, or to prevent evasion of, the provisions and be the 2nd largest depository organization in Florida, purposes of the BHC Act and the Board's regulations with deposits of $16.1 billion, representing approxiand orders issued thereunder. All of the commitments mately 14.0 percent of state deposits. and conditions relied on by the Board in reaching its decision in this case are conditions imposed in writing 4. Maryland by the Board in connection with its findings and NCNB is the 21st largest depository organization in decision and may be enforced under applicable laws. Maryland, holding $284.8 million in deposits, representing less than one percent of the total deposits in commercial banking organizations in the state. C&S/ December 4, 1991 Sovran is the 4th largest depository organization in Maryland, holding $3.5 billion in deposits, represent- JENNIFER J. JOHNSON ing approximately 8 percent of the total deposits in Associate Secretary of the Board commercial banking organizations in the state. Upon consummation of this proposal, NationsBank would Appendix be the fourth largest depository organization in Maryland, holding deposits of $3.8 billion, representing Deposit information for states in which NCNB and approximately 8.7 percent of state deposits. C&S/Sovran compete. Deposit data are as of June 30, 5. South Carolina 199J. NCNB is the third largest depository organization in 1. Virginia South Carolina, holding $2.4 billion in deposits, repre- NCNB is the 139th largest depository organization in senting approximately 12.4 percent of the total deposits Virginia, holding $7.2 million in deposits, representing in commercial banking organizations in the state. C&S/ less than one percent of the total deposits in commercial Sovran is the second largest depository organization in banking organizations in the state. C&S/Sovran is the South Carolina, with $2.9 billion in deposits, representlargest depository organization in Virginia, holding $11.4 ing approximately 15.6 percent of the total deposits in billion in deposits, representing approximately 20.8 per- commercial banking organizations in the state. Upon cent of the total deposits in commercial banking organi- consummation of this proposal, NationsBank would be zations in the state. Upon consummation of this proposal, the second largest depository organization in South NationsBank would be the largest depository organiza- Carolina, with deposits of $5.3 billion, representing tion in Virginia, with deposits of $11.4 billion, represent- approximately 28 percent of total deposits in commering approximately 21 percent of state deposits. cial banking organizations in South Carolina. 2. Georgia Banc One Corporation NCNB is the 83rd largest depository organization in Columbus, Ohio Georgia, holding $69 million in deposits, representing less than one percent of the total deposits in commercial Order Approving Acquisition of a Bank banking organizations in the state. C&S/Sovran is the Holding Company and Banking and largest depository organization in Georgia, holding $9.2 Nonbanking Subsidiaries billion in deposits, representing approximately 18.1 percent of the total deposits in commercial banking organi- Banc One Corporation, Columbus, Ohio ("Banc zations in the state. Upon consummation of this proposal, One"), a bank holding company within the meaning of NationsBank would be the largest depository organiza- the Bank Holding Company Act ("BHC Act"), has tion in Georgia, with deposits of $9.3 billion, representing applied for the Board's approval under section 3(a) of approximately 18.2 percent of state deposits. the BHC Act (12 U.S.C. § 1842(a)(3)) to acquire Premier Bancorp, Inc., Baton Rouge, Louisiana 3. Florida ("Premier"), thereby indirectly acquiring Premier NCNB is the 4th largest depository organization in Bank, N.A., Baton Rouge, Louisiana ("Bank").1 Florida, holding $10 billion in deposits, representing approximately 8.6 percent of the total deposits in commercial banking organizations in the state. C&S/ 1. Banc One has entered into an agreement with Premier under Sovran is the 6th largest depository organization in which Banc One will purchase a $65 million 15-year subordinated capital note, amounting to approximately 26 percent of Premier's total Florida, holding $6.1 billion in deposits, representing capital, and will have an option to acquire all of Premier's outstanding approximately 5.2 percent of the total deposits in stock, exercisable any time during the fourth or fifth year after the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

160 Federal Reserve Bulletin • February 1992 Banc One has also applied for the Board's approval company to acquire a bank or bank holding company under section 4(c)(8) of the BHC Act to acquire having its principal place of business in such other Premier Securities Corporation, Baton Rouge, Louisi- state on terms that are, on the whole, substantially no ana ("PSC"), and thereby engage in securities broker- more restrictive than those established by Ohio law.4 age services, and Premier Investment Advisors, Inc., The Louisiana Commissioner has determined that Baton Rouge, Louisiana ("PIA"), and thereby engage Banc One's proposed acquisition of Premier is specifin investment advisory services. These activities are ically authorized by Louisiana law and that Banc One authorized for bank holding companies pursuant to the has complied with all the pertinent provisions of Board's Regulation Y (12 C.F.R. 225.25(b)(4) and Louisiana law. Based on a review of the state statutes (b)(15)), and Banc One proposes to conduct these and all the facts of record, the Board concludes that activities nationwide. the proposed acquisition is not barred by the Douglas Notice of the applications, affording interested per- Amendment. sons an opportunity to submit comments, has been Banc One, with total consolidated assets of $46.3 duly published (56 Federal Register 37,553 (1991)). billion,5 controls 51 banking subsidiaries in Ohio, The time for filing comments has expired, and the Kentucky, Indiana, Michigan, Wisconsin, Illinois, and Board has considered the applications and all the Texas.6 Banc One is the second largest banking orgacomments received in light of the factors set forth in nization in Ohio, controlling approximately $11.7 bilsections 3(c) and 4(c)(8) of the BHC Act. lion in deposits, representing approximately 13.8 per- Section 3(d) of the BHC Act, the Douglas Amend- cent of total deposits in commercial banks in the state. ment, prohibits the Board from approving an applica- Premier, a one-bank holding company that operates in tion by a bank holding company to acquire control of nine banking markets, is the third largest banking any bank located outside of the bank holding com- organization in Louisiana, controlling deposits of $3.5 pany's home state, unless such acquisition is "specif- billion, representing approximately 10.7 percent of ically authorized by the statute laws of the State in total deposits in commercial banks in the state. Conwhich [the] bank is located, by language to that effect summation of this proposal would not result in any and not merely by implication." Banc One's home significantly adverse effect on the concentration of state is Ohio, and Premier's home state is Louisiana.2 banking resources in Ohio or Louisiana. The statute laws of Louisiana expressly authorize Banc One does not compete directly with Premier in any out-of-state bank holding company to acquire a any banking market. Accordingly, consummation of bank holding company or bank in Louisiana if the this proposal would not result in any significantly Commissioner of Financial Institutions for the state of adverse effect on the concentration of resources or on Louisiana determines that the law of the state in which competition in any relevant banking market. the out-of-state bank holding company has its principal The financial and managerial resources and future place of business permits Louisiana bank holding prospects of Banc One, Premier, and their subsidiary companies to acquire banks and bank holding compa- banks are consistent with approval. In this regard, the nies in that state.3 Ohio law expressly authorizes the Board notes that Bank's operating results for the first acquisition of an Ohio bank or bank holding company three quarters of this year reflect a strengthening of the by any bank holding company in another state if the bank's capital and reserve accounts. Considerations Superintendent of Banks determines that the laws of relating to the convenience and needs of the commusuch other state permit an Ohio bank or bank holding nities to be served also are consistent with approval of this application. effective date of the option. Premier may cancel the option only upon Banc One giving notice of their intent to exercise the option and only upon paying a substantial cancellation fee and accelerating the repayment of the capital note. The agreements between Banc One and Premier place significant restrictions on the operations of Premier, including on its ability to redeem stock, make investments or acqui- 4. Ohio Rev. Code Ann. § 1105.01 (Page Supp. 1990). sitions, incur indebtedness, engage in a merger, or sell its bank 5. Asset data are as of June 30, 1991. Ohio deposit data are as of subsidiary. In addition, Premier is required to designate representa- June 30, 1990, and Louisiana deposit data are as of December 31, tives to confer on a regular and frequent basis with Banc One. In light 1990. of the option and other management restrictions and relationships 6. In addition, Banc One indirectly holds through its Texas subsidplaced on Premier, Banc One has applied to acquire control of Premier iary bank 74.1 percent of the voting shares of The State Bank and within the meaning of the BHC Act. Trust Company of Golden Meadow, Golden Meadow, Louisiana 2. A bank holding company's home state is that state in which the ("Golden Meadow"). Banc One acquired the shares of Golden operations of the bank holding company's banking subsidiaries were Meadow through the collection of a debt previously contracted in principally conducted on July 1, 1966, or the date on which the good faith, is presently not exercising operating control over the bank, company became a bank holding company, whichever is later. and intends to divest of its shares. Accordingly, Banc One's holding of 3. La. Rev. Stat. Ann. § 6:533.A(3) (West Supp. 1991). Golden Meadow has no competitive effect on this proposal. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 161 Financial Responsibility Regulation Y and Banc One proposes to conduct these activities in accordance with the Board's regulations. In connection with this application, Banc One has In light of the facts of record, the Board concludes requested that the Board waive any requirement of that Banc One's acquisition of PSC and PIA would not the Board that Banc One serve as a source of significantly affect competition in any relevant market. financial strength to Bank until such time as Banc Furthermore, there is no evidence in the record to One exercises the option and acquires actual owner- indicate that consummation of this proposal is likely to ship of all of the shares of Premier.7 The Board has result in any significantly adverse effects, such as considered this request and determined that it is not undue concentration of resources, decreased or unfair appropriate to waive this requirement given the facts competition, conflicts of interests, or unsound banking of this case. The Board notes that the option agree- practices. Accordingly, the Board has determined that ment and capital note agreement together provide a the balance of public interest factors it must consider mechanism for Banc One to exert control over the under section 4(c)(8) of the BHC Act is favorable and future ownership of Premier and many of the most consistent with approval of Banc One's application to important management decisions of Premier. For acquire PSC and PIA. example, the agreements require management of Based on the foregoing and other facts of record, the Premier to consult actively with Banc One represen- Board has determined that the applications should be, tatives, and subjects expansion proposals and a and hereby are, approved. The Board's approval is number of other matters to Banc One's express expressly conditioned upon compliance with the comapproval. In addition, the option agreement has been mitments made by Banc One in connection with these structured to permit Banc One to benefit from the applications. The acquisition of Bank shall not be continued improved performance of Bank, while consummated before the thirtieth calendar day followprohibiting the acquisition of Premier by other par- ing the effective date of this Order, and the acquisities without a substantial penalty. On the other hand, tions of Bank, PSC, and PIA shall not be consumthe option agreement permits Banc One to terminate mated later than three months after the effective date the option in the event that Bank should experience of this Order, unless such period is extended for good difficulties in the future. Because of the significant cause by the Board or by the Federal Reserve Bank of involvement Banc One would have in the manage- Cleveland, pursuant to delegated authority. The determent and policies of Premier under the agreements minations as to the nonbanking activities are subject to and the manner in which the option preserves solely all of the conditions contained in the Board's Regulafor Banc One the benefits of this involvement, the tion Y, including those in sections 225.4(d) and Board believes that it would not be appropriate to 225.23(b)(3) (12 C.F.R. 225.4(d) and 225.23(b)(3)), and relieve Banc One of the responsibility to serve as a to the Board's authority to require such modification or termination of the activities of a holding company or source of financial strength to Bank in this case. any of its subsidiaries as the Board finds necessary to assure compliance with, or prevent evasions of, the Nonbanking Activities provisions and purposes of the BHC Act and the Board's regulations and orders issued thereunder. Banc One has also applied, pursuant to section 4(c)(8) of the BHC Act, to engage through PSC in securities By order of the Board of Governors, effective brokerage services and through PIA in investment advis- December 23, 1991. ory services. As noted above, these activities are permissible for bank holding companies under the Board's Voting for this action: Chairman Greenspan and Governors Mullins, Angell, LaWare, and Phillips. Absent and not voting: Governors Kelley and Lindsey. 7. 12 C.F.R. 225.4(a)(1). Also see Policy Statement; Responsibility JENNIFER J. JOHNSON of Bank Holding Companies to Act as Sources of Strength to Their Subsidiary Banks, 52 Federal Register 15,707 (1987). Associate Secretary of the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

162 Federal Reserve Bulletin • February 1992 ORDERS ISSUED UNDER THE FINANCIAL INSTITUTIONS REFORM, RECOVERY, AND ENFORCEMENT ACT CTIRREA ORDERS") Recent orders have been issued by the Staff Director of the Division of Banking Supervision and Regulation and the General Counsel of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Acquired Surviving Approval Bank Holding Company Thrift Bank(s) Date Citizens Financial Services, Inc., Star Savings and Loan First Citizens November 29, 1991 Mansfield, Pennsylvania Association, National Bank, Sayre, Pennsylvania Mansfield, Pennsylvania APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 3 Effective Applicant(s) Bank(s) Date SunTrust Banks, Inc., Florida WestCoast Banks, Inc., December 18, 1991 Atlanta, Georgia Venice, Florida Sun Banks, Inc., Orlando, Florida Section 4 Effective Applicant(s) Bank(s) First of America Bank Corporation, Champion Federal Savings and Loan December 26, 1991 Kalamazoo, Michigan Association, Bloomington, Illinois Sections 3 and 4 Effective Applicant(s) Bank(s) V^xe. NCNB Corporation, C&S/Sovran Corporation, December 4, 1991 Charlotte, North Carolina Atlanta, Georgia, and Norfolk, Virginia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 163 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 AmFirst Financial Services, Inc., State Bancshares, Inc., Kansas City November 26, 1991 McCook, Nebraska Benkelman, Nebraska Banco de Santander, S.A. de Santander National Bank, New York November 27, 1991 Credito, Bayamon, Puerto Rico Santander, Spain Belleville Bancshares Belleville State Bank, Chicago November 22, 1991 Corporation, Belleville, Wisconsin Belleville, Wisconsin Boatmen's Bancshares, Inc., Founders Bancorporation, St. Louis December 12, 1991 St. Louis, Missouri Inc., Oklahoma City, Oklahoma CBOC, Inc., Community Bank of Chicago November 29, 1991 Oconto Falls, Wisconsin Oconto County, Oconto Falls, Wisconsin Community Financial of Security Bancshares of St. Louis November 22, 1991 Kentucky, Inc., Marion County, Inc., Louisville, Kentucky Springfield, Kentucky Cowlitz Bancorporation, The Cowlitz Bank, San Francisco November 25, 1991 Longview, Washington Longview, Washington Farmersville Bancshares, Inc., First Bank, Dallas November 27, 1991 Farmersville, Texas McKinney, Texas First Beardstown Bancorp, Inc., First State Bank of Chicago November 27, 1991 Beardstown, Illinois Beardstown, Beardstown, Illinois First Citizens Financial Corp., Alta Vista Bancshares, Chicago November 27, 1991 Charles City, Iowa Inc., Alta Vista, Iowa First Holding Company of Park Security State Bank of Minneapolis December 6, 1991 River Inc., Adams, Park River, North Dakota Adams, North Dakota First National Bancorp, First National Bancshares Atlanta December 16, 1991 Gainesville, Georgia of Paulding County, Inc., Dallas, Georgia The First National Bank of First Artesia Bancshares, Dallas December 6, 1991 Artesia Employee Stock Inc., Ownership Plan, Artesia, New Mexico Artesia, New Mexico Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

164 Federal Reserve Bulletin • February 1992 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date Flatonia Bancshares, Inc., Flatonia State Bank, Dallas December 23, 1991 Flatonia, Texas Flatonia, Texas Flatonia Bancshares - Delaware, Inc., Wilmington, Delaware FNB Bancorporation, Inc., First National Bank of Cleveland December 16, 1991 Ft. Mitchell, Kentucky Northern Kentucky, Ft. Mitchell, Kentucky Georgia Bank Financial Georgia Bank & Trust Atlanta December 19, 1991 Corporation, Company of Augusta, Augusta, Georgia Augusta, Georgia Henning Bancshares, Inc., Battle Lake Bancshares, Minneapolis November 29, 1991 Henning, Minnesota Inc., Battle Lake, Minnesota Kansas Bank Corporation, Syracuse Financial Kansas City December 26, 1991 Liberal, Kansas Company, Syracuse, Kansas Lindoe, Inc., The Gunnison Bank and Kansas City November 27, 1991 Ordway, Colorado Trust Company, Gunnison, Colorado The Merchants Holding Bank of Melrose, Minneapolis December 4, 1991 Company, Melrose, Wisconsin Winona, Minnesota NBD Bancorp, Inc., Gainer Corporation, Chicago December 19, 1991 Detroit, Michigan Merrillville, Indiana Old Second Bancorp, Inc., Kane County Bancshares, Chicago December 17, 1991 Aurora, Illinois Inc., Elburn, Illinois Prairie Bancshares, Inc., Silver Lake Minneapolis December 4, 1991 Lester Prairie, Minnesota Bancorporation, Inc., Silver Lake, Minnesota Republic Financial Corporation, The Southwest National Kansas City December 6, 1991 Wichita, Kansas Bank of Wichita, Wichita, Kansas Sky Valley Bank Corp., The First National Bank Kansas City December 18, 1991 Alamosa, Colorado in Alamosa, Alamosa, Colorado Southwest Bancshares, Inc., Dover Bancshares, Inc., St. Louis December 4, 1991 Trumann, Arkansas Russellville, Arkansas State National Bancshares, Inc., The State National Bank Kansas City December 11, 1991 Wayne, Nebraska & Trust Company, Wayne, Nebraska Union Bancshares, Inc., Fannin Bancshares, Inc., Atlanta November 27, 1991 Blairsville, Georgia Blue Ridge, Georgia United Missouri Bancshares, Village Corporation, Kansas City December 6, 1991 Inc., Denver, Colorado Kansas City, Missouri Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 165 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date Wabasso Bancshares, Inc., Wabasso State Bank, Minneapolis December 13, 1991 Wabasso, Minnesota Wabasso, Minnesota Whitaker Bank Corporation of Whitaker Bancorp, Inc., Cleveland December 12, 1991 Kentucky, Lexington, Kentucky Lexington, Kentucky Whitaker Bancshares, Inc., Lexington, Kentucky Section 4 Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date The Chase Manhattan Florida Federal Savings New York November 27, 1991 Corporation, Bank, New York, New York St. Petersburg, Florida Fifth Third Bancorp, Pinnacle Bancorp, Cleveland November 26, 1991 Cincinnati, Ohio Middletown, Ohio Firstar Corporation, Chancellor Mortgage Chicago December 20, 1991 Milwaukee, Wisconsin Corporation, Brooklyn Center, Minnesota First Busey Corporation, Busey Interim Federal Chicago December 17, 1991 Urbana, Illinois Savings and Loan Association, Urbana, Illinois First Community Bancshares, The First of Burlington Kansas City November 27, 1991 Inc., Agency, Inc., Fort Morgan, Colorado Burlington, Colorado Marine Corporation, MT Interim Federal Chicago November 29, 1991 Springfield, Illinois Savings and Loan Association, Taylorville, Illinois Norwest Corporation, MIG Insurance Brokers, Minneapolis November 27, 1991 Minneapolis, Minnesota Inc., Minneapolis, Minnesota Union Bancorporation, Defiance Insurance Chicago December 13, 1991 Defiance, Iowa Agency, Defiance, Iowa Union Savings Bancshares, Inc., Sedalia Computer Kansas City November 27, 1991 Sedalia, Missouri Services, Inc., Sedalia, Missouri Wes-Tenn Bancorp, Inc., Tri-County Federal St. Louis December 13, 1991 Covington, Tennessee Savings Bank, Covington, Tennessee Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

166 Federal Reserve Bulletin • February 1992 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 1st United Bank, Mizner Bank, Atlanta December 17, 1991 Boca Raton, Florida Boca Raton, Florida Chemical Bank Michigan, Chemical Bank Gladwin Chicago December 9, 1991 Clare, Michigan County, Beaverton, Michigan Citizens Fidelity Bank and Trust Citizens Fidelity Bank St. Louis November 29, 1991 Company, and Trust Company Louisville, Kentucky Lexington, Lexington, Kentucky Commonwealth Bank, County Bank, Philadelphia November 29, 1991 Williamsport, Pennsylvania Montrose, Pennsylvania First Bank of Troy, Troy, Pennsylvania Liberty State Bank, Mount Carmel, Pennsylvania First Bank of Greater Pittston, Pittston, Pennsylvania Fifth Third Bank, Chase Bank of Ohio, Cleveland November 29, 1991 Cincinnati, Ohio Columbus, Ohio Lorain County Bank, Society Bank and Trust Cleveland December 9, 1991 Elyria, Ohio Company, Toledo, Ohio Old Kent Bank - Chicago, Old Kent Bank, N.A., Chicago December 24, 1991 Chicago, Illinois Elmhurst, Illinois PENDING CASES INVOLVING THE BOARD OF of the Bank Holding Company Act to merge with GOVERNORS Commerce BancShares of Wyoming, Inc. Board of Governors v. Kemal Shoaib, No. CV 91-5152 This list of pending cases does not include suits (C.D. California, filed September 24, 1991). Action against the Federal Reserve Banks in which the Board to freeze assets of individual pending administrative of Governors is not named a party. adjudication of civil money penalty assessment by the Board. On October 15, the court issued a pre- Greenberg v. Board of Governors, No. 91-4200 (2d liminary injunction restraining the transfer or dispo- Cir., filed November 22, 1991). Petition for review sition of the individual's assets. of Board order prohibiting former national bank Board of Governors v. Ghaith R. Pharaon, No. 91officials from banking. CIV-6250 (S.D. New York, filed September 17, First Interstate BancSystem of Montana, Inc. v. 1991. Action to freeze assets of individual pending Board of Governors, No. 91-1525 (D.C. Cir., filed administrative adjudication of civil money penalty November 1, 1991). Petition for review of Board's assessment by the Board. On September 17, the order denying on Community Reinvestment Act court issued an order temporarily restraining the grounds the petitioner's application under section 3 transfer or disposition of the individual's assets. In Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 167 re Smouha, No. 91-B-13569 (Bkr. S.D. New York, Fifth Circuit vacated the district court's order enfiled August 2, 1991). Ancillary proceeding under joining the Board from proceeding with enforcement the U.S. Bankruptcy Code brought by provisional actions based on section 23A of the Federal Reserve liquidators of BCCI Holdings (Luxembourg) S.A. Act, but upheld the district court's order enjoining and affiliated companies. On August 15, 1991, the such actions based on the Board's source-ofbankruptcy court issued a temporary restraining strength doctrine. 900 F.2d 852 (5th Cir. 1990). On order staying certain judicial and administrative cross-petitions for certiorari, Nos. 90-913, 90-914, actions, which has been continued by consent. the Supreme Court, on December 3, 1991, reversed Hanson v. Greenspan, No. 91-1599 (D.D.C., filed that part of the Court of Appeals decision enjoining June 28, 1991). Suit for return of funds and financial the Board's enforcement action, on the ground that instruments allegedly owned by plaintiffs. On No- the courts have no jurisdiction to affect such provember 25, 1991, the court dismissed the complaint. ceedings until final orders are issued by the Board. Fields v. Board of Governors, No. 3:91CV069 (N.D. MCorp v. Board of Governors, No. CA3-88-2693 Ohio, filed February 5, 1991). Appeal of denial of (N.D. Texas, filed October 10, 1988). Application request for information under the Freedom of Infor- for injunction to set aside temporary cease and mation Act. desist orders. Stayed pending outcome of MCorp v. Citicorp v. Board of Governors, No. 90-4124 (2d Board of Governors, 900 F.2d 852 (5th Cir. 1990). Circuit, filed October 4, 1990). Petition for review of Board order requiring Citicorp to terminate certain insurance activities conducted pursuant to Delaware WRITTEN AGREEMENTS APPROVED BY FEDERAL law by an indirect nonbank subsidiary. On June 10, RESERVE BANKS 1991, the court of appeals granted the petition and vacated the Board's order. The Independent Insur- First New York Business Bank Corp. ance Agents of America and others filed a petition New York, New York for certiorari on October 8, 1991; briefs opposing certiorari were filed on December 7, 1991. The Federal Reserve Board announced on Decem- Consumers Union of U.S., Inc. v. Board of Gover- ber 18, 1991, the execution of a Written Agreement nors, No. 90-5186 (D.C. Circuit, filed June 29, among the Federal Reserve Bank of New York and the 1990). Appeal of District Court decision upholding First New York Business Bank Corp., New York, amendments to Regulation Z implementing the New York. Home Equity Loan Consumer Protection Act. On July 12, 1991, the court of appeals affirmed the First Prairie Bankshares, Inc. majority of district court decision upholding the Georgetown, Illinois Board's regulations, but remanded two issues to the Board for further action. The Federal Reserve Board announced on Decem- Synovus Financial Corp. v. Board of Governors, No. ber 27, 1991, the execution of a Written Agreement 89-1394 (D.C. Circuit, filed June 21, 1989). Petition between the Federal Reserve Bank of Chicago and for review of Board order permitting relocation of a First Prairie Bankshares, Inc., Georgetown, Illinois. bank holding company's national bank subsidiary from Alabama to Georgia. On December 20, 1991, Presidential Holdings, Inc. the Court of Appeals vacated the Board's order, Bourbonnais, Illinois ruling that the Board has no authority over interstate relocations of national banks. The Federal Reserve Board announced on Decem- MCorp v. Board of Governors, No. 89-2816 (5th ber 3, 1991, the execution of a Written Agreement Circuit, filed May 2, 1989). Appeal of preliminary between the Federal Reserve Bank of Chicago and injunction against the Board enjoining pending and Presidential Holdings, Inc., Bourbonnais, Illinois, Jofuture enforcement actions against a bank holding seph A. Ferrante, James E. Malecha, and Anthony J. company now in bankruptcy. On May 15, 1990, the Unruh. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics CONTENTS WEEKLY REPORTING COMMERCIAL BANKS Assets and liabilities Domestic Financial Statistics 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 POLICY 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 All 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 liabilities and business credit series Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • February 1992 Domestic Financial Statistics—Continued A57 Selected U.S. liabilities to foreign official institutions REAL ESTATE A35 Mortgage markets REPORTED BY BANKS A36 Mortgage debt outstanding IN THE UNITED STATES A57 Liabilities to and claims on foreigners A58 Liabilities to foreigners CONSUMER INSTALLMENT CREDIT A60 Banks' own claims on foreigners A37 Total outstanding and net change A61 Banks' own and domestic customers' claims on A3 8 Terms foreigners A61 Banks' own claims on unaffiliated foreigners A62 Claims on foreign countries—Combined domestic offices and foreign branches FLOW OF FUNDS A39 Funds raised in U.S. credit markets REPORTED BY NONBANKING BUSINESS A41 Direct and indirect sources of funds to credit markets ENTERPRISES IN THE UNITED STATES A42 Summary of credit market debt outstanding A43 Summary of credit market claims, by holder A63 Liabilities to unaffiliated foreigners A64 Claims on unaffiliated foreigners Domestic Nonfinancial Statistics SECURITIES HOLDINGS AND TRANSACTIONS SELECTED MEASURES A65 Foreign transactions in securities A66 Marketable U.S. Treasury bonds and A44 Nonfinancial business activity—Selected notes—Foreign transactions measures A45 Labor force, employment, and unemployment A46 Output, capacity, and capacity utilization INTEREST AND EXCHANGE RATES A47 Industrial production—Indexes and gross value A49 Housing and construction A67 Discount rates of foreign central banks A50 Consumer and producer prices A67 Foreign short-term interest rates A51 Gross domestic product and income A68 Foreign exchange rates A52 Personal income and saving A69 Guide to Tabular Presentation, Statistical Releases, and Special International Statistics Tables SUMMARY STATISTICS SPECIAL TABLES A53 U.S. international transactions—Summary A70 Assets and liabilities of commercial banks, A54 U.S. foreign trade September 30, 1991 A54 U.S. reserve assets A54 Foreign official assets held at Federal Reserve A76 Terms of lending at commmercial banks, Banks November 1991 A55 Foreign branches of U.S. banks—Balance A80 Assets and liabilities of U.S. branches and agencies sheet data of foreign banks, September 30, 1991 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A3 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 the figures in that column IO Interest only are 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 DomesticN onfinancial Statistics • February 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 Q3r Julyr Aug.r Sept.r Oct/ Nov. Reserves of depository institutions2 1 Total 3.9 9. lr 3.0r 7.4 1.6 11.3 6.2 15.7 20.3 2 Required 1.7 4.5r i.9 7.9 4.1 7.1 10.1 12.3 25.3 3 Nonborrowed 7.8 8.9* 3.4r 4.3 -4.8 7.7 9.1 25.0 24.0 4 Monetary base3 9.9 14.4r 3.8r 5.8 5.5 9.1 6.4 9.9 6.5 Concepts of money, liquid assets, and debt4 5 Ml 3.4 5.9 7.3 6.8 1.5 9.2 5.4 12.4 15.4 6 M2 2.0 3.4 4.7r -.5 -4.0 -.1 .0 2.4 4.6 7 M3 .9 4.0 1.8 -2.5 -5.1 -.8 -1.9 1.2 2.9 8 L 1.8 3.3 -2.4 .3 1.0 -2.0 -2.4 1.9 n.a. 9 Debt 5.6r 4.8r 3.9r 5.2 4.7 5.8 6.0 6.0 n.a. Nontransaction components 10 In M2y 1.5 2.6 3.9 -3.0 -5.9 -3.2 -1.9 -1.1 .8 11 In M3 only6 -3.6 6.4 -10.5 -11.1 -9.7 -4.1 -10.3 -4.2 -4.3 Time and savings deposits Commercial banks 12 Savings, including MMDAs 4.1 7.5 16.6 12.9 11.8 10.4 9.1 14.7 14.5 13 Small time7 11.5 8.8 -1.7 .8 -1.4 8.0 -.8 -7.5 -14.0 14 Large time8,9 -8.5 12.0 .2 -8.5 -13.3 -7.9 -14.7 -19.0 -13.6 Thrift institutions 15 Savings, including MMDAs -7.3 -.7 18.4 9.7 10.0 2.6 5.6 8.8 13.6 16 Small time7 -8.6 -9.9r —14.7r -24.5 -24.2 -29.6 -18.9 -22.4 -17.8 17 Large time • -26.3 -31.9 -35.1 -40.9 -38.1 -46.7 -42.2 -46.4 -35.8 Money market mutual funds 18 General purpose and broker-dealer 9.8 18.5r s.o1 -10.9 -16.1 -21.3 -11.5 -4.4 -5.1 19 Institution-only 30.4 49.9 23.0 .7 -12.6 25.4 37.3 49.0 43.2 Debt components4 20 11.6 12.0 5.6r 13.6 12.0 15.8 13.8 14.3 n.a. 21 Nonfederal 3.7r 2.6r 3.4r 2.4 2.2 2.5 3.4 3.2 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 fiind balances (institution-only), less (S) 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. This 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 Factor 1991 1991 Sept. Oct. Nov. Oct. 16 Oct. 23 Oct. 30 Nov. 6 Nov. 13 Nov. 20 Nov. 27 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 297,531 295,971 300,929 295,899 295,313 296,258 300,400 302,351 299,754 300,893 U.S. government securities 2 Bought outright-system account 256,689 256,524 261,764 256,366 256,345 256,431 260,168 260,562 262,465 262,310 3 Held under repurchase agreements ... 2,099 401 1,004 531 0 0 1,245 2,720 0 1,350 Federal agency obligations 4 Bought outright 6,155 6,148 6,130 6,150 6,146 6,140 6,140 6,140 6,140 6,118 5 Held under repurchase agreements ... 203 23 15 99 0 0 3 44 0 21 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 57 38 18 100 24 16 18 10 14 21 8 Seasonal credit 285 210 86 213 207 175 104 92 91 77 9 Extended credit 309 9 1 8 15 12 0 3 1 2 10 Float 523 691 635 573 467 1,292 774 490 620 633 11 Other Federal Reserve assets 31,212 31,926 31,276 31,857 32,108 32,192 31,948 32,290 30,423 30,362 12 Gold stock 11,062 11,061 11,059 11,062 11,061 11,060 11,059 11,059 11,059 11,059 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 20,866 20,914 20,965 20,917 20,931 20,945 20,940 20,954 20,968 20,982 ABSORBING RESERVE FUNDS 15 Currency in circulation 294,675 295,745 299,098 296,584 296,354 295,474 296,909 299,032 299,288 299,681 16 Treasury cash holdings 607 617 633 610 624 626 631 632 633 637 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 7,855 5,907 5,731 4,486 6,493 5,130 7,908 5,832 5,596 5,281 18 Foreign 254 222 209 214 196 231 215 178 189 205 19 Service-related balances and adjustments 3,328 3,456 3,456 3,338 3,467 3,606 3,4% 3,762 3,760 3,665 20 Other 245 267 220 261 273 278 226 208 228 219 21 Other Federal Reserve liabilities and capital 8,656 8,692 8,580 8,514 8,362 8,522 8,344 8,433 8,432 8,635 22 Reserve balances with Federal Reserve Banks 23,855 23,058 24,785 23,889 21,555 24,414 24,688 26,304 23,671 24,630 End-of-month figures Wednesday figures 1991 1991 Sept. Oct. Nov. Oct. 16 Oct. 23 Oct. 30 Nov. 6 Nov. 13 Nov. 20 Nov. 27 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 296,876 306,804 304,408 301,227 295,308 296,078 300,621 313,077 298,415 301,410 U.S. government securities 2 Bought outright-system account 256,689 258,961 265,212 256,894 256,129 257,042 262,231 263,015 261,324 262,928 3 Held under repurchase agreements ... 0 8,714 0 3,718 0 0 0 9,100 0 1,627 Federal agency obligations 4 Bought outright 6,154 6,140 6,090 6,150 6,140 6,140 6,140 6,140 6,140 6,090 5 Held under repurchase agreements ... 0 19 0 695 0 0 0 108 0 5 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 38 30 59 216 20 16 2 24 13 25 8 Seasonal credit 276 123 45 214 197 156 90 97 83 64 9 Extended credit 0 0 1 9 18 1 0 0 1 2 10 Float 232 604 660 1,496 654 583 188 1,721 659 453 11 Other Federal Reserve assets 31,621 32,212 32,341 31,834 32,151 32,140 31,970 32,872 30,195 30,217 12 Gold stock 11,062 11,059 11,058 11,061 11,061 11,060 11,059 11,059 11,058 11,058 13 Special drawing rights certificate account . 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 14 Treasury currency outstanding 20,889 20,940 20,996 20,917 20,931 20,945 20,940 20,954 20,968 20,982 ABSORBING RESERVE FUNDS 15 Currency in circulation 293,512 296,522 301,830 297,019 296,013 295,899 297,914 299,628 299,303 301,424 16 Treasury cash holdings 607 631 636 623 626 630 632 633 637 636 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 7,928 18,111 6,317 5,356 6,269 4,566 6,168 4,278 5,377 5,104 18 Foreign 385 223 346 220 209 339 205 191 185 301 19 Service-related balances and adjustments 3,380 3,504 4,033 3,338 3,467 3,606 3,496 3,762 3,760 3,665 20 Other 283 213 221 258 282 220 215 213 242 208 21 Other Federal Reserve liabilities and capital 9,522 8,354 10,156 8,211 8,181 8,337 8,211 8,439 8,237 8,519 22 Reserve balances with Federal Reserve Banks3 23,229 21,264 22,942 28,199 22,271 24,504 25,798 37,964 22,748 23,613 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 NonfinancialS tatistics • February 1992 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Prorated monthly averages of biweekly averages RRReeessseeerrrvvveee ccclllaaassssssiiifffiiicccaaatttiiiooonnn 1988 1989 1990 1991 Dec. Dec. Dec. May June July Aug. Sept. Oct. Nov 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 37,837 35,436 30,237 22,287 23,685 23,271 22,810 23,447 23,197r 25,004 22222 TTTTToooootttttaaaaalllll vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh''''' 28,204 29,822 31,777 30,720 30,524 31,322 31,779 31,549 32,305 31,717 33333 AAAAAppppppppppllllliiiiieeeeeddddd vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh ,,,,, 25,909 27,374 28,884 26,776 26,722 27,389 27,798 27,680 28,386 28,053 44444 SSSSSuuuuurrrrrpppppllllluuuuusssss vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh 2,295 2,448 2,893 3,944 3,801 3,933 3,981 3,869 3,919 3,663 55555 TTTTToooootttttaaaaalllll rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss66666 63,746 62,810 59,120 49,063 50,407 50,660 50,607 51,127 51,584r 53,058 66666 RRRRReeeeeqqqqquuuuuiiiiirrrrreeeeeddddd rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 62,699 61,887 57,456 48,033 49,399 49,754 49,521 50,198 50,501r 52,164 77777 EEEEExxxxxccccceeeeessssssssss rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss ............... 1,047 923 1,664 1,030 1,008 906 1,086 929 l,083r 893 88888 TTTTToooootttttaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss88888 1,716 265 326 303 340 607 764 645 261 108 99999 SSSSSeeeeeaaaaasssssooooonnnnnaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss 130 84 76 151 222 317 331 287 211 86 1111100000 EEEEExxxxxttttteeeeennnnndddddeeeeeddddd cccccrrrrreeeeedddddiiiiittttt99999 1,244 20 23 88 8 46 300 302 12 1 Biweekly averages of daily figures for weeks ending 1991 Aug. 7 Aug. 21 Sept. 4 Sept. 18 Oct. 2 Oct. 16 Oct. 30 Nov. 13r Nov. 27 Dec. 11 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 23,029 22,508 23,077 24,771 22,024 23,418 22,980"" 25,494 24,155 26,847 22222 TTTTToooootttttaaaaalllll vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh11111 31,257 32,499 31,137 31,015 32,310 32,333 32,381 30,841 32,664 31,092 33333 AAAAAppppppppppllllliiiiieeeeeddddd vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh ^^^^^ 27,234 28,469 27,254 27,408 28,141 28,506 28,377 27,326 28,825 27,604 44444 SSSSSuuuuurrrrrpppppllllluuuuusssss vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh55555 4,023 4,030 3,883 3,608 4,169 3,827 4,004 3,515 3,840 3,488 55555 TTTTToooootttttaaaaalllll rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 50,262 50,977 50,331 52,179 50,165 51,924 51,357r 52,820 52,979 54,451 66666 RRRRReeeeeqqqqquuuuuiiiiirrrrreeeeeddddd rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 49,393 49,917 49,058 51,447 49,122 50,908 50,191r 51,907 52,045 53,840 77777 EEEEExxxxxccccceeeeessssssssss rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss ............... 870 1,061 1,273 732 1,044 1,016 l,167r 913 934 611 88888 TTTTToooootttttaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss88888 892 679 795 828 383 290 225 114 103 110 99999 SSSSSeeeeeaaaaasssssooooonnnnnaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss 351 330 320 269 296 228 191 98 84 45 1111100000 EEEEExxxxxttttteeeeennnnndddddeeeeeddddd cccccrrrrreeeeedddddiiiiittttt99999 188 281 406 4% 41 7 14 2 2 1 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 June 3 June 10 June 17 June 24 July 1 July 8 July 15 July 22 July 29 Federal funds purchased, repurchase agreements, and other selected borrowings From commercial banks in the United States 1 For one day or under continuing contract 77,969 79,824 75,265 71,226 74,884 80,113 76,311 70,188 68,116 2 For all other maturities 16,406 16,378 15,697 15,771 15,712 16,449 15,355 15,105 15,045 From other depository institutions, foreign banks and official institutions, and U.S. government agencies 3 For one day or under continuing contract 32,237 29,605 25,318 25,374 26,764 24,123 25,018 23,858 22,168 4 For all other maturities 21,602 22,362 22,743 21,089 21,745 22,351 22,469 22,401 22,225 Repurchase agreements on U.S. government and federal agency securities Brokers and nonbank dealers in securities 5 For one day or under continuing contract 11,754 11,261 11,382 10,644 9,440 8,766 9,186 8,431 8,282 6 For all other maturities 16,935 17,975 18,586 18,013 17,312 17,381 18,381 17,923 17,926 All other customers 7 For one day or under continuing contract 23,764 22,568 23,721 23,853 24,686 23,768 25,600 24,260 24,984 8 For all other maturities 11,081 11,068 11,095 11,362 10,878 12,638 11,935 12,293 12,149 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 49,608 45,070 43,044 41,625 49,315 47,321 41,751 38,866 38,099 10 To all other specified customers 17,298 17,507 18,887 18,498 18,542 18,789 19,972 18,810 17,011 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 NonfinancialS tatistics • February 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 12/31/91 date rate 12/31/91 date rate 12/31/91 date rate Effective date Boston 3.5 12/20/91 4.5 3.5 12/20/91 4.5 4.85 12/26/91 5.20 12/12/91 New York 12/20/91 12/20/91 12/26/91 12/12/91 Philadelphia 12/20/91 12/20/91 12/26/91 12/12/91 Cleveland 12/20/91 12/20/91 12/26/91 12/12/91 Richmond 12/20/91 12/20/91 12/26/91 12/12/91 Atlanta 12/20/91 12/20/91 12/26/91 12/12/91 Chicago 12/20/91 12/20/91 12/26/91 12/12/91 St. Louis 12/24/91 12/24/91 12/26/91 12/12/91 Minneapolis 12/23/91 12/23/91 12/26/91 12/12/91 Kansas City 12/20/91 12/20/91 12/26/91 12/12/91 Dallas 12/20/91 12/20/91 12/26/91 12/12/91 San Francisco ... 3.5 12/20/91 4.5 3.5 12/20/91 4.5 4.85 12/26/91 5.20 12/12/91 Range of rates for adjustment credit in recent years4 Range(or F.R. Range (or F.R. Range (or F.R. Effective date A le l v l e F l) . — R. Ba o n f k Effective A le l v l e F l) . — R. Ba o n f k Effective date A le l v l e F l) . — R. Ba o n f k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1977 6 6 1981-—May 5 13-14 14 1986—Mar. 7 7-7.5 7 14 14 10 7 7 1978—Jan. 9 6-6.5 6.5 Nov. 7 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---JJuullyy ?0 11.5-12 11.5 10 7.25 7.25 73 . . 11.5 11.5 1987—Sept. 4 5.5-6 6 Aug. 21 7.75 7.75 AAuugg.. 7 . 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 77 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. 17 . . 9.5-10 9.5 1989—Feb. 24 6.5-7 7 13 . . 9.5 9.5 27 7 7 1979—July 20 10 10 Nov. 77 9-9.5 9 Aug. 17 10-10.5 10.5 7ft 9 9 1990—Dec. 19 6.5 6.5 20 10.5 10.5 Dec. 14 8.5-9 9 Sept. 19 10.5-11 11 15 8.5-9 8.5 1991—Feb. 1 6-6.5 6 21 11 11 17 . . 8.5 8.5 4 6 6 Oct. 8 11-12 12 Apr. 30 5.5-6 5.5 10 12 12 1984-——AApprr.. 9 . 8.5-9 9 May 2 5.5 5.5 13 . . 9 9 Sept. 13 5-5.5 5 1980—Feb. 15 12-13 13 Nov. 71 8.5-9 8.5 Sept. 17 5 5 19 13 13 76 8.5 8.5 Nov. 6 4.5-5 4.5 May 29 12-13 13 Dec. 74 8 8 7 4.5 4.5 30 12 12 Dec. 20 3.5-4.5 3.5 June 13 11-12 11 1985-——MMaayy 70 .. 7.5-8 7.5 24 3.5 3.5 16 11 11 74 7.5 7.5 29 10 10 In effect Dec. 31, 1991 3.5 3.5 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 chained, 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 accounts3 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 Garrv-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 1 Vi 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 Vi 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 IV2 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 • February 1992 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars 1991 TTyyppee ooff ttrraannssaaccttiioonn 11998888 11998899 11999900 Apr. May June July Aug. Sept. Oct. U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 8,223 14,284 24,739 908 3,411 37 1,359 5,776 529 2,198 2 Gross sales 587 12,818 7,291 0 0 0 0 0 0 0 3 Exchanges 241,876 231,211 241,086 21,981 27,548 19,680 22,280 28,009 19,508 25,409 4 Redemptions 2,200 12,730 4,400 0 0 0 0 0 0 0 Others within one year 5 Gross purchases 2,176 327 425 700 200 0 625 340 200 0 6 Gross sales 0 0 0 0 0 0 0 0 0 0 7 Maturity shifts 23,854 28,848 25,638 4,324 5,175 0 1,478 3,425 1,131 2,002 8 Exchanges -24,588 -25,783 -27,424 -993 -4,887 0 -3,136 -2,443 -2,202 -2,034 9 Redemptions 0 500 0 0 0 0 0 0 0 0 One to five years 10 Gross purchases 5,485 1,436 250 550 0 0 0 0 650 0 11 Gross sales 800 490 200 0 0 0 0 0 0 0 12 Maturity shifts -17,720 -25,534 -21,770 -4,214 -3,410 0 -1,192 -3,425 -1,131 -1,877 13 Exchanges 22,515 23,250 25,410 777 4,287 0 2,601 1,993 2,202 1,686 Five to ten years 14 Gross purchases 1,579 287 0 0 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 -110 -1,605 0 -286 688 0 -126 17 Exchanges 1,797 1,934 789 216 400 0 534 300 0 347 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 -160 0 0 -688 0 0 21 Exchanges 275 600 1,226 0 200 0 0 150 0 0 All maturities 22 Gross purchases 18,863 16,617 25,414 2,158 3,611 37 1,984 6,116 1,379 2,198 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 1,369,052 185,662 147,7% 118,903 120,292 112,414 116,266 137,073 26 Gross purchases 1,168,142 1,326,542 1,363,434 187,032 147,803 118,239 121,803 110,280 118,481 135,281 Repurchase agreements2 27 Gross purchases 152,613 129,518 219,632 16,173 9,241 9,440 35,149 16,847 40,447 12,432 28 Gross sales 151,497 132,688 202,551 16,173 9,241 8,478 36,111 16,847 40,447 3,718 29 Net change in U.S. government securities 15,872 -10,055 24,886 3,528 3,618 335 2,532 3,981 3,595 9,121 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 0 0 0 0 0 0 0 0 0 0 31 Gross sales 0 0 0 0 0 0 0 0 5 0 32 Redemptions 587 442 183 91 0 0 55 0 0 14 Repurchase agreements2 33 Gross purchases 57,259 38,835 41,836 640 885 1,225 3,245 537 3,061 714 34 Gross sales 56,471 40,411 40,461 640 885 748 3,722 537 3,061 695 35 Net change in federal agency obligations 198 -2,018 1,192 -91 0 477 -532 0 -5 5 36 Total net change in System Open Market Account 16,070 -12,073 26,078 3,437 3,618 812 2,000 3,981 3,590 9,126 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 A11 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month Account 1991 1991 Oct. 30 Nov. 6 Nov. 13 Nov. 20 Nov. 27 Sept. 30 Oct. 31 Nov. 29 Consolidated condition statement 1 Gold certificate account 11,060 11,059 11,059 11,058 11,058 11,062 11,059 11,058 2 Special drawing rights certificate account 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 3 Coin 585 578 569 567 560 579 579 557 Loans 4 To depository institutions 172 93 121 97 91 315 153 106 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 1 Bought outright 6,140 6,140 6,140 6,140 6,090 6,154 6,140 6,090 8 Held under repurchase agreements 0 0 108 0 5 0 19 0 9 Total U.S. Treasury securities. 257,042 262,231 272,115 261,324 264,555 258,554 267,675 265,213 10 Bought outright2 257,042 262,231 263,015 261,324 262,928 258,554 258,961 265,213 11 Bills 127,058 132,146 132,580 130,489 131,693 128,569 128,976 131,661 12 Notes 98,372 98,472 98,822 99,072 99,472 98,372 98,372 101,220 13 Bonds 31,613 31,613 31,613 31,763 31,763 31,613 31,613 32,332 14 Held under repurchase agreements 0 0 9,100 0 1,627 0 8,714 0 15 Total loans and securities 263,355 268,463 278,483 267,561 270,740 265,022 273,987 271,407 16 Items in process of collection 5,256 6,084 9,772 6,048 5,798 2,591 4,949 4,059 17 Bank premises 965 965 970 970 973 953 %5 976 Other assets 18 Denominated in foreign currencies 25,758 25,557 25,580 25,660 25,244 25,939 25,557 26,739 19 All other4 5,894 6,001 6,946 4,138 4,474 5,473 6,243 4,705 20 Total assets 322,891 328,725 343,396 326,021 328,865 321,636 333,357 329,519 LIABILITIES 21 Federal Reserve notes 276,170 278,183 279,875 279,539 281,638 273,809 276,792 282,027 22 Total deposits 33,903 37,056 47,243 33,199 33,621 36,000 44,061 34,129 23 Depository institutions .. 28,778 30,468 42,561 27,426 28,008 27,404 25,513 27,246 24 U.S. Treasury—General Ii account 4,566 6,168 4,278 5,377 5,104 7,928 18,111 6,317 25 Foreign—Official accounts 339 205 191 185 301 385 223 346 26 Other 220 215 213 211 208 283 213 221 27 Deferred credit items 4,481 5,274 7,838 5,045 5,088 2,306 4,151 3,207 28 Other liabilities and accrued dividends5. 2,774 2,760 2,789 2,584 2,857 2,902 2,912 2,947 29 Total liabilities. 317,327 323,274 337,746 320,367 323,204 315,016 327,915 322,310 CAPITAL ACCOUNTS 30 Capital paid in 2,606 2,625 2,632 2,633 2,645 2,565 2,606 2,642 31 Surplus 2,423 2,423 2,423 2,423 2,423 2,423 2,413 2,423 32 Other capital accounts. 535 403 595 598 594 1,632 423 2,144 33 Total liabilities and capital accounts 322,891 328,725 343,3% 326,021 328,865 321,636 333,357 329,519 34 MEMO: Marketable U.S. Treasury securities held in custody for foreign and international accounts . 245,777 247,259 247,748 251,761 253,026 250,232 252,020 254,484 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to Bank) 368,290 376,719 369,759 370,822 371,379 366,144 368,108 371,067 36 LESS: Held by Federal Reserve Bank 92,120 89,536 89,884 91,283 89,742 92,335 91,316 89,040 37 Federal Reserve notes, net 276,170 278,183 279,875 279,539 281,638 273,809 276,792 282,027 Collateral held against notes, net: 38 Gold certificate account 11,060 11,059 11,059 11,058 11,058 11,062 11,059 11,058 39 Special drawing rights certificate account. 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 40 Other eligible assets 0 0 0 0 0 0 0 0 41 U.S. Treasury and agency securities 255,092 257,106 258,799 258,463 260,562 252,729 255,715 260,951 42 Total collateral. 276,170 278,183 279,875 279,539 281,638 273,809 276,792 282,027 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 Nonfinancial Statistics • February 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. 30 Nov. 6 Nov. 13 Nov. 20 Nov. 27 Sept. 30 Oct. 31 Nov. 29 1 Total loans 172 93 121 97 91 315 153 106 2 Within fifteen days 143 23 48 86 84 163 72 84 3 Sixteen days to ninety days 29 70 73 12 7 152 82 22 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 257,042 262,231 263,024 261,324 264,555 258,554 258,961 265,212 10 Within fifteen days2 10,669 18,052 12,731 14,226 12,200 5,257 6,709 5,174 11 Sixteen days to ninety days 62,862 58,427 64,259 62,996 64,151 65,857 61,051 69,572 12 Ninety-one days to one year 84,600 85,894 85,975 85,104 88,806 88,778 91,443 88,931 13 One year to five years 60,692 61,539 61,739 60,744 61,144 60,664 61,539 62,527 14 Five years to ten years 14,042 14,142 14,142 14,089 14,089 13,820 14,042 14,469 15 More than ten years 24,178 24,178 24,178 24,165 24,165 24,178 24,178 24,540 16 Total Federal agency obligations 6,140 6,140 6,140 6,140 6,095 6,154 6,140 6,090 17 Within fifteen days2 158 59 105 383 313 283 158 308 18 Sixteen days to ninety days 759 867 762 484 565 669 759 565 19 Ninety-one days to one year 1,431 1,422 1,422 1,422 1,430 1,479 1,431 1,430 20 One year to five years 2,605 2,605 2,663 2,663 2,608 2,485 2,605 2,608 21 Five years to ten years 1,000 1,000 1,000 1,000 990 1,050 1,000 990 22 More than ten years 188 189 188 188 188 188 188 188 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 1991r IItteemm DD 1199 ee 88 cc 77 .. DD 1199 ee 88 cc 88 .. DD 1199 ee 88 cc 99 .. DD 1199 ee 99 cc 00 .. Apr. May June July Aug. Sept. Oct. Nov. Seasonally adjusted AADDJJUUSSTTEEDD FFOORR CCHHAANNGGEESS IINN RREESSEERRVVEE RREEQQUUIIRREEMMEENNTTSS11 11 TToottaall rreesseerrvveess33 45.81 47.60 47.73 49.10 49.34 50.00 50.35 50.41 50.89 51.15 51.82 52.70 22 NNoonnbboorrrroowweedd rreesseerrvveess44 ^^ 45.03 45.88 47.46 48.78 49.11 49.70 50.01 49.80 50.12 50.50 51.56 52.59 33 NNoonnbboorrrroowweedd rreesseerrvveess pplluuss eexxtteennddeedd ccrreeddiitt55 45.52 47.12 47.48 48.80 49.20 49.79 50.01 49.85 50.42 50.80 51.57 52.59 44 RReeqquuiirreedd rreesseerrvveess 44.77 46.55 46.81 47.44 48.31 48.97 49.34 49.50 49.80 50.22 50.73 51.80 55 MMoonneettaarryy bbaassee66 246.28 263.46 274.17 299.78 310.57 311.43 312.41 313.84 316.23 317.93 320.55 322.29 Not seasonally adjusted 6 Total reserves 47.04 49.00 49.18 50.58 50.25 49.00 50.32 50.56 50.49 50.99 51.43 52.89 7 Nonborrowed reserves 46.26 47.29 48.91 50.25 50.02 48.69 49.98 49.95 49.73 50.35 51.17 52.78 8 Nonborrowed reserves plus extended credit . 46.75 48.53 48.93 50.28 50.10 48.78 49.99 50.00 50.03 50.65 51.18 52.78 9 Required reserves 46.00 47.% 48.26 48.91 49.22 47.97 49.31 49.65 49.41 50.07 50.35 51.99 10 Monetary base9 249.93 267.46 278.30 304.04 310.82 310.97 314.00 316.14 316.68 317.28 319.14 323.06 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS 11 Total reserves11 62.14 63.75 62.81 59.12 50.30 49.06 50.41 50.66 50.61 51.13 51.58 53.06 12 Nonborrowed reserves 61.36 62.03 62.54 58.79 50.07 48.76 50.07 50.05 49.84 50.48 51.32 52.95 13 Nonborrowed reserves plus extended credit5. 61.85 63.27 62.56 58.82 50.16 48.85 50.08 50.10 50.14 50.78 51.33 52.95 14 Required reserves 61.09 62.70 61.89 57.46 49.27 48.03 49.40 49.75 49.52 50.20 50.50 52.16 15 Monetary base12 266.06 283.00 292.55 313.70 313.95 314.25 317.25 319.46 320.07 320.70 322.71 326.89 16 Excess reserves 1.05 1.05 .92 1.66 1.03 1.03 1.01 .91 1.09 .93 1.08 .89 17 Borrowings from the Federal Reserve .78 1.72 .27 .33 .23 .30 .34 .61 .76 .65 .26 .11 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 NonfinancialS tatistics • February 1992 1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1 Billions of dollars, averages of daily figures 1991r 1987 1988 1989 1990 Dec. Dec. Dec. Dec. Aug. Sept. Oct. Nov. Seasonally adjusted Measures2 1 Ml 749.7 786.4 793.6 825.4 866.1 870.0 879.0 890.3 2 M2 2,910.1 3,069.9 3,223.1 3,327.8 3,389.0 3,389.0 3,395.7 3,408.6 3 M3 3,677.4 3,919.1 4,055.2 4,111.2 4,144.7 4,138.1 4,142.2 4,152.3 4 L 4,337.0 4,675.9r 4,889.9 4,966.6 4,975.0 4,965.1 4,972.9 n.a. 5 Debt 8,345.1 9,107.6 9,790.4 10,432. lr 10,755.8 10,809.6 10,863.6 n.a. Ml components 6 Currency 196.8 212.0 222.2 246.4 260.8 262.4 264.4 265.3 7 Travelers checks 7.0 7.5 7.4 8.4 7.7 7.8 7.9 8.1 8 Demand deposits 286.5 286.3 278.7 276.9 279.8 279.3 282.6 287.4 9 Other checkable deposits 259.3 280.7 285.2 293.8 317.8 320.5 324.1 329.5 Nontrgnsaction components 10 In M2 2,160.4 2,283.5 2,429.5 2,502.4 2,522.9 2,518.9 2,516.6 2,518.3 11 In M38 767.3 849.3 832.1 783.4 755.6 749.1 746.5 743.8 Commercial banks 12 Savings deposits, including MMDAs 534.8 542.2 540.7 577.7 631.0 635.8 643.6 651.4 13 Small time deposits 388.0 447.5 531.4 598.1 605.0 604.6 600.8 593.8 14 Large time deposits • 326.6 368.0 401.9 386.1 390.8 386.0 379.9 375.6 Thrift institutions 15 Savings deposits, iiicluding MMDAs 402.3 383.5 349.5 339.0 365.2 366.9 369.6 373.8 16 Small time deposits 529.7 584.3 614.5 566.1 501.6 493.7 484.5 477.3 17 Large time deposits10 162.6 174.3 161.6 121.0 93.9 90.6 87.1 84.5 Money market mutual funds 18 General purpose and broker-dealer 221.7 241.1 313.6 345.4 355.0 351.6 350.3 348.8 19 Institution-only 88.9 86.9 101.9 125.7 144.8 149.3 155.4 161.0 Debt components 20 Federal debt 1,957.9 2,114.2 2,268.1 2,534.3 2,707.0 2,738.1 2,770.8 n.a. 21 Nonfederal debt 6,387.2 6,993.4 7,522.3 7,897.8r 8,048.8 8,071.5 8,092.8 n.a. Not seasonally adjusted Measures2 22 Ml 766.2 804.2 811.9 844.3 864.0 867.0 875.0 893.5 23 M2 2,923.0 3,083.3 3,236.6 3,341.9 3,389.8 3,383.9 3,392.6 3,412.5 24 M3 3,690.3 3,931.5 4,067.0 4,123.3 4,149.8 4,135.7 4,138.8 4,159.2 25 L 4,352.8 4,691.8 4,907.4 4,985.2 4,973.5 4,963.2 4,968.2 n.a. 26 Debt 8,329.1 9,093.2 9,775.9 10,419.3r 10,708.5 10,761.4 10,824.9 n.a. Ml components 27 Currency3 199.3 214.8 225.3 249.6 262.0 261.8 263.2 266.3 28 Travelers checks 6.5 6.9 6.9 7.8 8.6 8.3 8.0 7.7 29 Demand deposits5 298.6 298.9 291.5 289.9 278.6 278.5 283.6 290.9 30 Other checkable deposits 261.8 283.5 288.2 297.0 314.8 318.4 320.3 328.5 Nontrgnsaction components 31 In M2 2,156.8 2,279.1 2,424.7 2,497.6 2,525.8 2,517.0 2,517.6 2,519.1 32 In M38 767.3 848.2 830.4 781.4 760.0 751.8 746.2 746.7 Commercial banks 33 Savings deposits, including MMDAs 535.8 543.8 542.9 579.3 630.1 634.2 643.2 653.8 34 Small time deposits 387.2 446.0 529.2 596.1 606.1 604.4 600.7 592.5 35 Large time deposits • 11 325.8 366.8 400.4 386.1 391.8 387.8 382.3 378.1 Thrift institutions 36 Savings deposits, including MMDAs 399.9 381.5 347.9 338.3 365.4 366.1 369.8 374.4 37 Small time deposits 529.5 583.8 613.8 564.1 502.5 493.6 484.4 476.3 38 Large time deposits 163.3 175.2 162.6 121.1 94.1 91.1 87.6 85.0 Money market mutual funds 39 General purpose and broker-dealer 221.1 240.7 313.5 345.5 353.7 351.6 350.1 350.6 40 Institution-only 89.6 87.6 102.8 127.0 143.9 145.9 152.4 161.6 Repurchase agreements and eurodollars 41 Overnight 83.2 83.4 77.3 74.3 67.9 67.1 69.4 71.5 42 Term 197.1 227.7 179.8 160.8 145.2 141.9 139.9 138.3 Debt components 43 Federal debt 1,955.6 2,111.8 2,265.9 2,532.1 2,691.4 2,722.0 2,756.7 n.a. 44 Nonfederal debt 6,373.5 6,981.4 7,509.9 7,887.2r 8,017.1 8,039.4 8,068.2 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 DomesticN onfinancial Statistics • February 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 Apr. May June July Aug. Sept. DEBITS TO Seasonally adjusted Demand deposits3 1 All insured banks 219,795.7 256,150.4 277,916.3 294,433.5 295,559.0 266,704.2 284,872.2 275,915.9 283,671.3 2 Major New York City banks 115,475.6 129,319.9 131,784.0 146,499.3 148,074.9 133,761.4 139,089.0 136,906.9 142,138.2 3 Other banks 104,320.2 126,830.5 146,132.3 147,934.2 147,484.1 132,942.8 145,783.2 139,009.0 141,533.1 4 ATS-NOW accounts4 2,478.1 2,910.5 3,349.6 3,820.3 3,620.2 3,460.1 3,822.8 3,659.4 3,687.9 5 Savings deposits 537.0 547.5 558.8 577.1 548.6 519.9 552.6 516.7 2,970.9 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 622.9 735.1 800.6 870.3 867.0 768.4 833.4 798.0 823.1 7 Major New York City banks 2,897.2 3,421.5 3,804.1 4,533.4 4,702.8 4,141.9 4,413.3 4,448.0 4,490.8 8 Other banks 333.3 408.3 467.7 483.4 476.6 422.3 469.8 441.4 452.2 9 ATS-NOW accounts4 13.2 15.2 16.5 17.8 16.4 15.5 16.9 15.9 15.7 10 Savings deposits 2.9 3.0 2.9 2.8 2.6 2.4 2.5 2.3 4.8 DEBITS TO Not seasonally adjusted Demand deposits3 11 All insured banks 219,790.4 256,133.2 277,400.0 294,492.4 292,012.3 270,144.7 286,068.7 289,049.5 274,111.5 12 Major New York City banks 115,460.7 129,400.1 131,784.7 145,700.2 145,073.9 133,851.7 139,527.4 146,342.8 137,659.5 13 Other banks 104,329.7 126,733.0 145,615.3 148,792.2 146,938.4 136,293.0 146,541.3 142,706.6 136,452.1 14 ATS-NOW accounts4 2,477.3 2,910.7 3,342.2 3,967.1 3,549.9 3,446.1 3,729.0 3,693.2 3,688.2 15 MMDAs 2,342.7 2,677.1 2,923.8 2,994.5 2,978.6 2,714.5 2,868.0 2,751.7 n.a 16 Savings deposits 536.3 546.9 557.9 623.9 545.5 516.4 558.2 537.0 3,183.9 DEPOSIT TURNOVER Demand deposits3 17 All insured banks 622.8 735.4 799.6 864.8 875.5 781.7 831.4 849.5 795.2 18 Major New York City banks 2,896.7 3,426.2 3,810.0 4,565.4 4,742.5 4,154.4 4,334.6 4,771.4 4,305.8 19 Other banks 333.2 408.0 466.3 482.1 485.0 434.9 469.8 460.9 436.3 20 ATS-NOW accounts4 13.2 15.2 16.4 17.8 16.3 15.5 16.7 16.3 15.9 21 MMDAs6 6.6 7.9 8.0 7.7 7.6 6.8 7.2 6.8 n.a 22 Savings deposits5 2.9 2.9 2.9 3.0 2.6 2.4 2.5 2.4 5.1 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 All 1.23 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars, averages of Wednesday figures 1990 1991 IItteemm Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Seasonally adjusted 1 Total loans and securities2 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 2,799.3 2 U.S. government securities 454.2 454.1 458.0 471.4 479.2 485.1 495.2 505.3 512.6 522.1 538.2 549.3 3 Other securities 175.6 177.7 177.6 177.6 175.7 173.9 173.1 172.0 169.9 170.8 172.2 172.3 4 Total loans and leases2 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 2,077.6 5 Commercial and industrial ..... 648.1 644.3 643.9 646.0 640.0 633.2 630.4 626.7 620.5 623.8 623.8 620.2 6 Bankers acceptances held ... 7.5 7.7 6.9 6.7 6.8 6.9 6.6 6.6 7.1 6.9 6.5 7.0 7 Other commercial and industrial 640.5 636.6 637.0 639.3 633.2 626.4 623.8 620.0 613.4 616.8 617.3 613.2 8 U.S. addressees4 . 635.3 631.1 631.5 633.6 627.7 620.6 617.9 614.3 607.7 611.0 611.2 607.0 9 Non-U.S. addressees 5.3 5.5 5.5 5.7 5.5 5.8 5.9 5.7 5.7 5.9 6.2 6.2 10 Real estate 836.5 837.3 842.6 846.3 850.9 855.1 859.5 857.0 853.9 853.4 854.2 856.3 11 Individual 378.9 375.9 377.7 375.5 374.1 373.5 372.0 369.6 368.9 365.3 362.7 361.7 12 Security 40.6 43.1 43.2 38.9 39.8 39.8 38.3 41.6 42.6 43.9 43.8 46.4 n Nonbank financial institutions 34.8 34.8 35.9 36.7 35.9 36.9 37.1 37.1 36.3 36. lr 36.6 38.9 14 Agricultural 33.0 33.5 33.5 34.0 33.9 33.6 33.0 32.5 32.3 32.2 32.r 32.2 15 State and political subdivisions 34.3 33.2r 33. r 32.7 32. r 31.7 31.0 30.5 30.0 29.5 29.3 28.8 16 Foreign banks 7.2 6.0 6.1 7.2 6.8 6.4 6.0 6.2 6.3 6.5 6.1 6.7 17 Foreign official institutions 3.2 3.0 3.1 3.2 3.0 3.0 3.0 3.1 3.1 3.2 3.3 3.5 18 Lease-financing receivables 32.7 32.4 32.8 33.0 32.7 32.7 32.8 32.0 31.4 31.2 31.1 30.9 19 All other loans 44.7 45.9 47.6 48.6 47.6r 45.7 51.8r 49.6r 53.8r 50.9 51.0"^ 52.0 Not seasonally adjusted 20 Total loans and securities2 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 2,785.3 2,802.6 71 U.S. government securities 451.5 455.8 463.9 475.8 480.5 485.2 493.7 501.8 510.4 519.6 535.2 549.4 77 Other securities 176.3 177.9 177.3 176.9 175.1 173.8 173.2 171.3 170.1 171.0 172.4 173.0 71 Total loans and leases2 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 2,080.2 74 Commercial and industrial ..... 648.0 641.1 643.0 648.3 644.7 637.1 632.7 627.0 619.2 620.3 621.5 618.1 25 Bankers acceptances held ... 7.7 7.6 7.0 6.7 6.7 6.8 6.7 6.3 6.9 6.9 6.6 7.1 7ft Other commercial and industrial 640.3 633.4 636.0 641.6 638.1 630.3 626.0 620.6 612.3 613.4 614.9 611.0 77 U.S. addressees4 635.1 628.2 630.5 636.1 632.2 624.5 620.0 614.8 606.4 607.4 608.7 604.8 78 Non-U.S. addressees 5.2 5.3 5.5 5.4 5.9 5.9 6.0 5.8 5.9 6.0 6.2 6.1 79 Real estate 837.9 837.1 839.5 842.6 848.3 854.2 859.6 857.5 855.9 855.2 856.9 858.4 30 Individual 383.8 380.1 377.1 372.8 371.5 371.8 369.9 367.4 368.1 367.0 363.6 362.8 31 Security 40.0 41.0 44.7 40.2 41.3 39.0 40.5 41.3 42.0 42.9 42.9 45.2 32 Nonbank financial institutions 36.2 35.3 35.5 36.0 35.5 36.5 37.2 36.9 36.3r 35.8r 36.5 39.3 33 Agricultural 32.9 32.8 32.6 32.6 32.8 33.1 33.3 33.4 33.3 33.3 33.lr 32.6 34 State and political subdivisions 34.0 33.8 33.2 32.7 32.0 31.7r 30.9 30.3 29.9 29.5 2299..22 2288..88 35 Foreign banks 7.4 6.0 6.0 6.8 6.7 6.3 6.1 6.3 6.2 6.5 6.4 6.8 36 Foreign official institutions 3.2 3.0 3.1 3.2 3.0 3.0 3.0 3.1 3.1 3.2 3.3 3.5 37 Lease-financing receivables 32.8 32.8 32.9 32.9 32.7 32.6 32.6 31.8 31.3 31.2 31.2 31.0 38 All other loans 46.6 44. r 48.4 47.7r 47.4 45.4 51.1 49.2r so^ 51.9 53.7r 53.9 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 • February 1992 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Billions of dollars, monthly averages 1990 1991 SSoouurrccee ooff ffuunnddss Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct/ Nov. Seasonally adjusted 1 Total nondeposit funds 288.6 278.2 266.2 265.8r 265.7r 263.6r 254.5r 254.5r 249.2r 254.3r 268.0 270.4 2 Net balances due to related foreign offices3 34.6 33.5 24.9 30.4r 31.01 26.3r 19.3r 19.5r 17.lr 19.97 30.8 32.8 3 Borrowings from other than commercial banks in United States 254.0 244.7 241.3 235.4 234.7 237.3 235.2 235.0 232.1 234.4 237.2 237.6 4 Domestically chartered banks 187.8 183.0 178.0 172.5 172.4 171.8 170.6 169.6 163.9 165.4 163.8 161.6 5 Foreign-related banks 66.2 61.7 63.3 62.9 62.2 65.5 64.6 65.4 68.2 69.0 73.4 76.0 Not seasonally adjusted 6 Total nondeposit funds 283.0 273.5 269.3r 271. r 266.4r 271.7r 257.6r 251.2r 247.7r 250.3r 265.0 271.1 7 Net balances due to related foreign offices3.... 37.2 33.2 24.9r 29.9 29.lr 28^ 19.6r 17. lr 16.5r 20. lr 30.3 33.5 8 Domestically chartered banks -4.1 -15.3 -15.2 -6.0 -3.6r -.7 -3.5 -7.2 -7.5 -9.1 -7.7 -5.0 9 Foreign-related banks 41.3 48.4 40.T 35.9* 32.7r 29.5r 23.r 24.3r 24.0" 29.2r 38.0 38.5 10 Borrowings from other than commercial banks in United States 245.9 240.4 244.4 241.2 237.3 242.8 237.9r 234.1 231.2 230.2 234.8 237.6 11 Domestically chartered banks 183.5 178.5 180.3 176.9 173.2 176.6 171.6 167.5 163.5 162.6 162.2 163.9 12 Federal funds and security RP borrowings 180.7 175.2 177.5 173.6 170.3r 173.8 168.7 164.3 159.8 159.1 159.0 160.7 13 Other6 2.8 3.2 2.8 3.2 2.8r 2.8 2.8 3.2 3.7 3.5 3.2 3.2 14 Foreign-related banks6 62.3 61.9 64.1 64.3 64.1 66.2 66.4 66.6 67.7 67.7r 72.6 73.7 MEMO Gross large time deposits1 Seasonally adjusted 431.8 441.0 450.6 451.0 451.3 453.0 451.9 447.6 447.2 443.9 435.1 432.4 16 Not seasonally adjusted 431.8 439.3 449.2 450.5 449.0 452.6 451.4 446.4 448.2 445.7 437.5 434.9 U.S. Treasury demand balances at commercial banks' 17 Seasonally adjusted 24.4 25.7 33.4 33.8 21.7 15.1 23.2 20.5 23.8 21.9 31.1 37.6 18 Not seasonally adjusted 23.0 29.4 39.3 28.4 20.4 19.8 23.6 20.7 17.2 26.9 28.7 28.6 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 1991r Account Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. ALL COMMERCIAL BANKING INSTITUTIONS2 1 Total assets 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 3,499.6 7 Loans and securities 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 2,984.5 3 Investment securities 612.8 614.0 628.3 628.5 634.1 640.8 648.7 650.9 657.6 681.9 692.0 4 U.S. government securities 447.6 449.5 463.3 465.1 471.8 480.1 489.9 492.8 498.8 522.1 531.5 5 Other 165.2 164.5 165.1 163.4 162.2 160.7 158.8 158.1 158.8 159.8 160.5 6 Trading account assets 24.1 26.9 23.5 24.9 24.3 27.5 30.2 28.5 29.9 32.6 33.2 7 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 2,259.2 8 Interbank loans 193.3 185.0 171.8 160.7 172.5 166.8 175.9 167.5 172.4 178.6 178.8 9 Loans excluding interbank 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 2,080.4 10 Commercial and industrial 637.2 645.1 648.5 643.6 635.1 632.4 624.2 617.8 620.0 618.5 617.7 11 Real estate 836.9 840.1 842.5 849.2 855.4 859.3 856.0 854.8 854.7 858.8 857.9 1? Individual 378.6 376.4 371.5 372.0 370.7 369.8 368.3 368.2 366.7 363.7 361.8 13 All other 225.9 237.4 224.8 228.3 229.6 239.8 234.3 233.3 238.0 236.3 243.0 14 Total cash assets 199.2 204.5 206.1 201.0 224.3 212.3 214.1 200.1 207.1 210.3 228.1 15 Reserves with Federal Reserve Banks .. 16.5 18.1 25.0 23.1 26.2 29.1 24.8 23.0 25.7 25.6 24.4 16 Cash in vault 30.4 29.8 28.9 29.1 31.1 29.8 29.7 31.1 30.1 30.7 29.5 17 Cash items in process of collection ... 74.7 79.9 76.9 74.3 87.2 78.3 87.8 71.7 75.3 75.2 90.3 18 Demand balances at U.S. depository institutions 28.1 27.7 27.6 26.4 30.8 28.3 26.9 27.7 26.9 28.8 3322..33 19 Other cash assets 49.6 49.0 47.7 48.1 49.0 46.8 45.0 46.5 49.2 50.1 51.5 20 Other assets 249.9 259.6 263.1 260.1 264.2 260.6 286.7 276.2 276.5 280.9 287.1 21 Total liabilities 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 3,269.1 77 Total deposits 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 2,485.0 23 Transaction accounts 587.9 594.1 602.8 601.3 617.6 611.2 639.4 612.0 613.7 628.0 669.8 24 Savings deposits (excluding checkable) 573.9 583.5 594.1 595.4 606.2 610.7 661199..99 662244..11 662288..22 664400..00 664477..77 75 Time deposits 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 1,167.6 76 Borrowings 529.8 515.4 492.3 494.6 499.8 510.4 503.5 480.9 498.5 512.6 498.0 77 Other liabilities 268.8 282.3 278.2 263.9 267.6 263.8 258.4 257.1 265.2 276.4 286.0 28 Residual (assets less liabilities)3 224.6 226.2 227.0 228.1 229.6 228.9 227.9 228.4 229.0 228.9 230.5 DOMESTICALLY CHARTERED COMMERCIAL BANKS4 29 Total assets 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 3,038.2 30 Loans and securities 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 2,674.2 31 Investment securities 575.3 577.4 588.6 592.3 595.7 602.7 611.0 612.1 618.1 636.2 643.2 37 U.S. government securities 426.5 429.3 440.2 445.5 449.2 457.8 467.9 470.2 475.6 492.9 499.6 33 Other 148.7 148.2 148.5 146.8 146.5 144.9 143.0 141.9 142.5 143.3 143.6 34 Trading account assets 24.1 26.9 23.5 24.9 24.3 27.5 30.2 28.5 29.9 32.6 33.2 35 Total loans 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 1,997.8 36 Interbank loans 151.7 150.9 148.3 134.2 144.5 139.0 150.4 146.4 148.0 149.2 156.0 37 Loans excluding interbank 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 1,841.8 38 Commercial and industrial 504.2 508.4 506.3 502.4 495.0 491.2 482.6 475.3 472.6 470.7 467.9 39 Real estate 794.0 797.1 799.7 804.9 808.9 812.1 808.2 806.9 806.9 810.3 809.5 40 Revolving home equity 62.9 63.3 63.6 64.4 65.7 66.6 67.0 67.6 68.7 69.3 69.6 41 Other real estate 731.1 733.8 736.1 740.3 743.0 743.7 741.2 739.4 738.2 741.1 739.9 47 378.6 376.4 371.5 372.0 370.7 369.8 368.3 368.2 366.7 363.7 361.8 43 All other 200.2 205.1 197.7 198.4 198.8 203.6 202.6 200.2 203.1 198.1 202.6 44 Total cash assets 166.6 172.7 177.0 171.6 193.6 184.3 187.6 172.3 177.0 179.7 197.8 45 Reserves with Federal Reserve Banks. 15.3 17.0 24.0 21.9 25.8 28.3 23.9 22.1 24.9 25.0 23.9 46 Cash in vault 30.3 29.8 28.8 29.1 31.1 29.8 29.7 31.0 30.1 30.6 29.5 47 Cash items in process of collection ... 72.9 78.2 74.9 72.6 85.5 76.2 86.1 70.1 73.8 73.4 88.1 48 Demand balances at U.S. depository institutions 26.2 25.8 25.8 24.8 28.8 26.5 25.2 25.9 24.9 2277..00 3300..33 49 Other cash assets 22.0 21.9 23.4 23.2 22.4 23.6 22.8 23.2 23.4 23.8 26.0 50 Other assets 166.9 171.3 167.9 161.6 162.1 159.3 168.9 163.4 162.9 170.9 166.2 51 Total liabilities 2,770.5 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 2,811.3 57, Deposits 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 2,336.3 53 Transaction accounts 577.4 583.8 592.2 591.4 607.5 600.9 629.3 602.1 604.0 618.1 659.2 54 Savings deposits (excluding 570.6 580.2 590.6 591.9 602.5 607.1 661166..22 620.4 662244..55 663366..22 664433..88 55 Time deposits 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 1,033.4 56 Borrowings 380.1 371.8 354.9 346.5 355.1 364.4 352.2 338.8 355.6 359.9 343.3 57 Other liabilities 124.2 136.8 136.0 132.6 131.9 128.4 124.9 125.0 122.3 129.9 131.7 58 Residual (assets less liabilities)3 220.9 222.6 223.4 224.5 226.0 225.3 224.2 224.8 225.4 225.3 226.9 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 maiority-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 DomesticN onfinancial Statistics • February 1992 1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY-REPORTING COMMERCIAL BANKS1 Millions of dollars, Wednesday figures 1991 AAccccoouunntt Oct. 2 Oct. 9 Oct. 16 Oct. 23' Oct. 30' Nov. 6 Nov. 13 Nov. 20 Nov. 27 ASSETS 1 Cash and balances due from depository institutions 104,048' 97,617r 125,152' 97,373 102,694 101,196 127,512 107,506 114,730 2 U.S. Treasury and government securities 213,614 216,267r 218,260 217,673 219,807 221,943 223,643 225,674 223,523 3 Trading account 19,214 21,312 21,133 20,376 18,924 21,246 21,461 22,663 20,094 4 Investment account 194,400 194,955r 197,126' 197,298 200,883 200,698 202,182 203,011 203,429 5 Mortgage-backed securities 78,496 78,326 78,736 77,228 78,344 77,222 77,076 77,640 76,636 All others, by maturity 6 One year or less 25,328 25,736 25,892 25,721 26,016 26,330 26,901 26,029 25,932 7 One year through five years 47,942 48,391 49,753 49,847 50,796 51,410 52,145 53,499 54,545 8 More than five years 42,634 42,503 42,745 44,502 45,726 45,736 46,061 45,843 46,316 9 Other securities 56,655 56,623 56,423 56,330 56,399 56,097 55,930 55,798 56,338 10 Trading account 1,350 1,285 1,216 1,289 1,313 1,267 1,330 1,296 1,544 11 Investment account 55,305 55,338 55,207 55,041 55,086 54,830 54,599 54,502 54,795 12 State and political subdivisions, by maturity 24,020 23,986 23,942 23,694 23,630 23,497 23,217 22,977 23,033 13 One year or less 2,998 3,009 2,968 2,935 2,951 2,999 2,948 2,918 3,015 14 More than one year 21,022 20,977 20,973 20,759 20,679 20,498 20,269 20,060 20,018 15 Other bonds, corporate stocks, and securities 31,285 31,353 31,265 31,347 31,456 31,333 31,382 31,525 31,762 16 Other trading account assets 10,673 11,148 12,109 11,738 12,383 11,476 11,849 12,230 11,570 17 Federal funds sold3 92,205 83,169 90,638 73,452 79,855 82,502 83,649 80,930 82,619 18 To commercial banks in the United States 64,828 55,866 66,658 49,200 55,329 58,156 60,326 52,792 56,629 19 To nonbank brokers and dealers 22,869 23,603 20,252 20,095 20,108 20,191 19,791 24,091 21,862 20 To others 4,508 3,700 3,728 4,157 4,418 4,155 3,533 4,047 4,128 21 Other loans and leases, gross l,007,745r 1,003,419"^ 1,008,093' 1,001,285 1,002,949 1,003,238 1,006,363 1,000,754 1,000,915 22 Commercial and industrial 299,715r 297,852r 299,020' 296,430 295,476 296,157 295,478 295,216 294,339 23 Bankers acceptances and commercial paper 1,630 1,643 1,659 1,684 1,715 1,741 2,228 2,247 2,272 24 All other 298,085r 296,209r 297,361' 294,746 293,761 294,416 293,250 292,969 292,067 25 U.S. addressees 296,407r 294,61 lr 295,673' 293,052 292,172 292,962 291,885 291,617 290,758 26 Non-U.S. addressees 1,679 1,597 1,688 1,694 1,589 1,453 1,365 1,352 1,309 27 Real estate loans 395,944r 396,068r 396,066' 395,696 395,806 396,107 396,730 395,979 395,470 28 Revolving, home equity 39,15lr 39,173r 39,264' 39,323 39,365 39,266 39,351 39,427 39,513 29 All other 356,793r 356,895r 356,802' 356,373 356,441 356,841 357,379 356,553 355,958 30 To individuals for personal expenditures 182,437r 181,785r 181,737' 181,799 182,237 181,909 181,935 180,692 180,056 31 To financial institutions 45,589r 44,264r 43,849' 43,497 44,067 44,671 45,555 43,166 44,223 32 Commercial banks in the United States 20,669r 19,598r 18,870' 19,281 19,808 19,671 20,183 18,966 18,998 33 Banks in foreign countries l,896r 2,003r 2,348' 2,177 1,681 2,058 2,130 1,686 2,164 34 Nonbank financial institutions 23,024r 22,664 22,631 22,039 22,577 22,941 23,242 22,513 23,060 35 For purchasing and carrying securities ll,122r 11,598 13,772' 12,359 13,733 12,818 14,186 14,388 14,351 36 To finance agricultural production 6,208r 6,210r 6,176' 6,131 6,118 6,076 6,025 6,001 5,945 37 To states and political subdivisions 18,23lr 18,182 18,210' 18,155 18,091 17,968 17,8% 17,851 17,866 38 To foreign governments and official institutions 979 1,053 1,005 956 1,006 1,019 1,407 930 1,109 39 All other loans 21,812r 20,703r 22,471' 20,892 21,017 21,062 21,732 21,165 22,263 40 Lease-financing receivables 25,707r 25,703r 25,788' 25,368 25,399 25,452 25,420 25,366 25,293 41 LESS: Unearned income 3,521 3,519 3,518 3,401 3,415 3,368 3,363 3,358 3,341 42 Loan and lease reserve6 37,487 37,165 36,383' 36,368 36,419 37,029 36,980 36,977 36,754 43 Other loans and leases, net 966,737r 962,735r 968,192' 961,515 963,115 962,842 966,021 960,419 960,820 44 Other assets 155,868r 154,013r 153,063' 152,152 155,654 157,103 153,284 152,997 152,029 45 Total assets l,599,800r 1,581,573' 1,623,837' 1,570,234 1,589,906 1,593,160 1,621,886 1,595,555 1,601,631 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 Oct. 2 Oct. 9 Oct. 16 Oct. 23" Oct. 30" Nov. 6 Nov. 13 Nov. 20 Nov. 27 LIABILITIES 46 Deposits 1,111,508r l,100,648r l,126,656r 1,087,015 1,093,752 1,103,034 1,121,361 1,105,399 1,118,098 47 Demand deposits 231,452 219,438 247,168r 213,596 221,894 223,312 244,310 230,353 244,247 48 Individuals, partnerships, and corporations 186,121 178,993 195,651r 172,711 178,008 . 181,219 193,712 182,847 194,383 49 Other holders 45,331 40,445 51,518 40,885 43,886 42,093 50,598 47,506 49,865 50 States and political subdivisions 7,252 6,563 7,417 7,109 6,995 7,328 7,176 7,459 8,311 51 U.S. government 2,213 1,344 2,583 1,392 1,634 1,373 1,548 1,630 3,405 52 Depository institutions in the United States ... 21,033 18,522 24,830 18,520 20,594 18,903 25,370 19,657 22,495 53 Banks in foreign countries 4,862 4,851 5,399 4,739 4,572 5,373 5,187 5,156 5,349 54 Foreign governments and official institutions .. 575 473 674 615 594 679 709 569 740 55 Certified and officers' checks 9,396 8,692 10,615 8,510 9,498 8,437 10,606 13,035 9,565 56 Transaction balances other than demand deposits5 . 94,273r 93,750 93,888r 91,527 91,735 96,312 94,621 94,311 %,1% 57 Nontransaction balances 785,783r 787,46c 785,600" 781,891 780,122 783,410 782,430 780,735 777,655 58 Individuals, partnerships, and corporations 753,529r 755,02 lr 753,617r 750,069 748,659 752,019 751,168 749,661 746,637 59 Other holders 32,254r 32,438r 31,983r 31,821 31,464 31,391 31,262 31,074 31,018 60 States and political subdivisions 26,755r 26,820" 26,440" 26,395 26,025 25,827 25,843 25,662 25,570 61 U.S. government 1,101 1,148 1,156 1,141 1,152 1,183 1,181 1,176 1,177 62 Depository institutions in the United States ... 3,975 4,052 3,973 3,873 3,876 3,959 3,822 3,834 3,849 63 Foreign governments, official institutions, and banks . 423 419 415 412 411 420 416 402 422 64 Liabilities for borrowed money6 279,473r 265,889" 282,732" 269,875 280,993 275,888 285,358 272,825 264,571 65 Borrowings from Federal Reserve Banks 0 0 90 10 0 0 0 0 5 66 Treasury tax and loan notes 25,240 14,474r 17,751" 23,318 28,034 20,274 23,543 18,020 15,114 67 Other liabilities for borrowed money 254,233r 251,415r 264,891" 246,547 252,959 255,614 261,815 254,805 249,452 68 Other liabilities (including subordinated notes and debentures) 94,428r 99,625r 99,530" 98,029 100,818 99,054 99,495 101,2% 103,620 69 Total liabilities 1,485,409' l,466,162r 1,508,919" 1,454,919 1,475,563 1,477,976 1,506,214 1,479,520 1,486,289 70 Residual (total assets less total liabilities)8 114,391r 115,41 r 114,918" 115,315 114,344 115,185 115,673 116,035 115,343 7 7 1 2 T M T i o E m t M a e l O d l o e a p n o s s i a ts n d in l e a a m se o s u , n g ts r o o s f s , $ 1 a 0 d 0 ju ,0 s 0 te 0 d o , r p m lu o s r s e e curities , l,2 1 9 7 5 7 , , 3 2 9 6 5 8 r l,2 1 9 7 5 7 , , 1 9 6 4 3 9 r 1,2 1 9 7 9 5 , , 9 6 9 0 4 7 " 1,2 1 9 7 1 4 , , 9 61 % 4 1,2 1 % 72 , , 2 6 5 9 5 7 1,2 1 9 7 7 2 , , 4 8 3 2 0 4 1,3 1 0 7 0 0 , , 9 9 2 7 4 2 1,3 1 0 7 3 0 , , 6 8 2 0 8 6 1,2 1 9 7 9 0 , , 3 6 3 7 8 3 73 Loans sold outright to affiliates 1,491 1,470 1,490 1,472 1,465 1,431 1,388 1,363 1,323 74 Commercial and industrial 821 799 826 805 798 787 759 735 705 75 Other 670 671 664 667 666 644 629 628 618 76 Foreign branch credit extended to U.S. residents11... 24,122 24,274 24,239 23,881 23,981 24,307 24,115 24,204 24,572 77 Net due to related institutions abroad —ll,810r -6,573r -4,769 -6,571 -4,929 -7,334 -5,149 -3,867 -3,901 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 Nonfinancial Statistics • February 1992 1.30 LARGE WEEKLY-REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS Assets and Liabilities1 Millions of dollars, Wednesday figures 1991 AAccccoouunntt Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30 Nov. 6 Nov. 13 Nov. 20 Nov. 27 1 Cash and balances due from depository institutions 15,862 16,473 15,934 16,820 16,898 16,154 19,818 17,590 16,932 2 U.S. Treasury and government agency securities 16,398r 16,682r 17,496r 18,138 18,880 18,944 20,067 18,835 20,441 3 Other securities 7,496 7,361 7,537 7,426 7,589 7,615 7,666 7,847 7,847 4 Federal funds sold1 7,925 7,746 11,604 10,974 12,858 9,947 10,656 8,788 10,076 5 To commercial banks in the United States ... 3,420 2,448 4,607 3,794 5,983 2,546 4,007 2,746 4,080 6 To others 4,505 5,299 6,998 7,180 6,874 7,402 6,649 6,042 5,9% 7 Other loans and leases, eross 143,905r 143,lllr 145,210r 144,542 145,233 146,655 146,284 148,761 150,400 8 Commercial and industrial 86,57lr 86,514r 87,248r 86,946r 86,587r 87,492 87,675 88,697 89,207 9 Bankers acceptances and commercial paper l,904r 2,134r 2,104r 1,824 1,862 1,818 1,868 2,036 2,252 10 All other 84,667r 84,380r 85,144r 85,121r 84,725r 85,674 85,807 86,661 86,955 11 U.S. addressees 82,460r 82,158r 82,860r 82,913r 82,438r 83,332 83,409 84,198 84,483 12 Non-U.S. addressees 2,207 2,222 2,284 2,208 2,288 2,342 2,398 2,463 2,472 13 Loans secured by real estate 32,722r 32,738 33,049 33,166 33,321 33,287 33,244 33,317 33,430 14 To financial institutions 18,949*" 18,382r 18,418r 18,144r 19,05 lr 19,017 19,171 19,363 19,937 15 Commercial banks in the United States.. 8,546 8,084 7,603 7,506 8,093 7,739 7,816 7,945 8,205 16 Banks in foreign countries 2,113 2,018 1,894 1,894 1,930 2,003 2,292 2,262 2,265 17 Nonbank financial institutions 8,29c 8,280r 8,921r 8,744r 9,028r 9,275 9,063 9,156 9,467 18 For purchasing and carrying securities 3,347r 3,238r 4,015r 3,872r 3,853r 4,491 3,767 4,864 5,166 19 To foreign governments and official institutions 337788 394 339988 409 395 394 409 421 421 20 All other 1,938 1,847 2,083r 2,006r 2,027r 1,974 2,018 2,100 2,238 21 Other assets (claims on nonrelated parties) .. 28,681r 29,078r 29,066r 29,325 30,572 30,955 31,556 32,377 31,620 22 Total assets3 262,629' 259,589r 263,294r 262,248 269,027 270,752 274,403 273,220 275,973 23 Deposits or credit balances due to other than directly related institutions 96,490 92,589 89,147 90,106 93,755 92,319 93,611 95,240 94,950 24 Demand deposits4 3,545 3,951 3,689 3,760 3,464 3,356 3,693 4,203 3,895 25 Individuals, partnerships, and corporations 2,291 2,121 2,366 2,180 2,221 2,138 2,369 2,284 2,332 7,6 Other 1,254 1,830 1,323 1,580 1,243 1,217 1,324 1,919 1,563 27 Nontransaction accounts 92,945 88,638 85,457 86,346 90,291 88,963 89,919 91,037 91,055 28 Individuals, partnerships, and corporations 66,765r 6633,,553399rr 62,417r 62,974r 65,562 64,176 65,567 65,678 65,256 29 Other 26, ISC 25,099"^ 23,041r 23,372r 24,729 24,787 24,351 25,359 25,799 30 Borrowings from other than directly related institutions 93,470 93,593 98,135 95,691 94,461 97,987 95,197 94,777 95,466 31 Federal funds purchased 48,691 50,862 54,398 53,269 50,231 53,628 47,938 51,335 49,240 32 From commercial banks in the United States 21,151 18,869 23,172 17,210 18,867 22,018 19,620 18,226 19,151 33 From others 27,540 31,993 31,226 36,058 31,364 31,610 28,317 33,109 30,090 34 Other liabilities for borrowed money 44,780 42,731 43,736 42,422 44,230 44,359 47,259 43,442 46,225 35 To commercial banks in the United States 14,559 13,115 13,660 12,452r 13,302 13,214 13,450 13,088 14,138 36 To others 30,221 29,615 30,076 29,970"^ 30,928 31,145 33,809 30,354 32,087 37 Other liabilities to nonrelated parties 27,754r 29,050r 28,250r 29,247 30,027 30,071 30,659 30,413 30,064 38 Total liabilities6 262,629r 259,589r 263,294r 262,248 269,027 270,752 274,403 273,220 275,973 MEMO 39 Total loans (gross) and securities, adjusted7.. 163,758r 164,37c 169,637r 169,781 170,484 172,877 172,850 173,540 176,478 40 Net due to related institutions abroad 2,553r 5,220r ll,315r 12,181 13,786 9,894 16,580 13,767 16,836 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 1986 1987 1988 1989 1990 IItteemm Dec. Dec. Dec. Dec. Dec. May June July Aug. Sept. Oct. Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 331,316 358,997 458,464 530,123 566,688 534,097 534,561 544,048 536,936 531,886 528,275 Financial companies2 Dealer-placed paper 2 Total 110011,,770077 102,742 159,777 186,343 218,953 206,500 203,139 205,099 208,159 211,821 219,028 3 Bank-related (not seasonally adjusted) 2,265 1,428 1,248 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Directly placed paper 4 Total 115511,,889977 174,332 194,931 212,640 201,862 183,383 189,512 193,699 190,659 188,382 117788,,883344 5 Bank-related (not seasonally adjusted) 40,860 43,173 43,155 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 6 Nonfinancial companies6 77,712 81,923 103,756 131,140 145,873 144,214 141,910 145,250 138,118 131,683 130,413 Bankers dollar acceptances (not seasonally adjusted)7 7 Total 64,974 70,565 66,631 62,972 54,771 46,438 45,539 44,756 44,228 43,462 44,910 Holder 8 Accepting banks 13,423 10,943 9,086 9,433 9,017 10,138 10,028 9,081 9,622 10,174 9,876 9 Own bills 11,707 9,464 8,022 8,510 7,930 8,179 8,414 7,906 7,826 8,237 8,306 10 Bills bought 1,716 1,479 1,064 924 1,087 1,959 1,613 1,175 1,795 1,937 1,570 Federal Reserve Banks 11 Own account 0 0 0 0 0 0 0 0 0 0 0 12 Foreign correspondents 1,317 965 1,493 1,066 918 1,053 1,203 1,274 1,665 1,678 1,862 13 Others 50,234 58,658 56,052 52,473 44,836 35,247 34,308 34,401 32,941 31,610 33,172 Basis 14 Imports into United States 14,670 16,483 14,984 15,651 13,096 12,821 13,431 12,728 12,968 12,876 13,265 15 Exports from United States 12,960 15,227 14,410 13,683 12,703 11,511 11,416 11,468 11,044 10,966 11,105 16 All other 37,344 38,855 37,237 33,638 28,973 22,106 20,691 20,561 20,215 19,620 20,541 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 Date of change Rate Period Av r e a r t a e g e Period Av r e a r t a e g e Period 1989— Jan. 1 111000...555000 1989 10.87 1990-• Jan. 10.11 1991—Jan. .. Feb. 10 111111...000000 1990 10.01 Feb. 10.00 Feb. . 24 111111...555000 1991 8.46 Mar. 10.00 Mar. . June 5 11.00 Apr. 10.00 Apr. . July 31 10.50 1989— Jan 10.50 May 10.00 May .. Feb 10.93 June 10.00 June . 1990— Jan. 8 10.00 Mar 11.50 July 10.00 July .. Apr 11.50 Aug. 10.00 Aug. . 1991— Jan. 2 9.50 May 11.50 Sept. 10.00 Sept. . Feb. 4 9.00 June 11.07 Oct. 10.00 Oct. .. May 1 8.50 July 10.98 Nov. 10.00 Nov. . Sept. 13 . 8.00 Aug 10.50 Dec. 10.00 Dec. . Nov. 6 7.50 Sept 10.50 Dec. 23 6.50 Oct 10.50 Nov 10.50 Dec 10.50 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 DomesticN onfinancial Statistics • February 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 Aug. Sept. Oct. Nov. Nov. 1 Nov. 8 Nov. 15 Nov. 22 Nov. 29 MONEY MARKET INSTRUMENTS 1 Federal funds1,2,3 7.57 9.21 8.10 5.66 5.45 5.21 4.81 5.10 5.05 4.74 4.89 4.68 2 Discount window borrowing ,4 6.20 6.93 6.98 5.50 5.20 5.00 4.58 5.00 4.93 4.50 4.50 4.50 Commercial paper3,5,6 3 1-month 7.58 9.11 8.15 5.72 5.57 5.29 4.95 5.19 4.98 4.99 4.92 4.91 4 3-month 7.66 8.99 8.06 5.72 5.57 5.35 4.98 5.26 5.00 5.00 4.96 4.94 5 6-month 7.68 8.80 7.95 5.76 5.59 5.33 4.93 5.21 4.98 4.94 4.91 4.84 Finance paper, directly placed3,5,7 6 1-month 7.44 8.99 8.00 5.58 5.43 5.18 4.80 5.09 4.86 4.81 4.74 4.74 7 3-month 7.38 8.72 7.87 5.56 5.33 5.19 4.87 5.12 4.90 4.89 4.85 4.80 8 6-month 7.14 8.16 7.53 5.50 5.34 5.12 4.76 5.04 4.82 4.74 4.73 4.71 Bankers acceptances3,5,8 9 3-month 7.56 8.87 7.93 5.54 5.38 5.21 4.85 5.09 4.88 4.87 4.84 4.78 10 6-month 7.60 8.67 7.80 5.55 5.42 5.15 4.76 5.01 4.83 4.79 4.73 4.65 Certificates qf deposit, secondary marker• 11 1-month 7.59 9.11 8.15 5.64 5.47 5.23 4.86 5.12 4.93 4.87 4.79 4.82 12 3-month 7.73 9.09 8.15 5.65 5.47 5.33 4.94 5.21 4.98 4.98 4.90 4.86 13 6-month 7.91 9.08 8.17 5.79 5.60 5.32 4.92 5.19 4.97 4.97 4.90 4.83 14 Eurodollar deposits, 3-month3,10 7.85 9.16 8.16 5.65 5.50 5.34 4.% 5.25 5.01 4.98 4.90 4.90 U.S. Treasury bills Secondary market ' 15 3-month 6.67 8.11 7.50 5.33 5.22 4.99 4.56 4.85 4.68 4.62 4.49 4.39 16 6-month 6.91 8.03 7.46 5.39 5.25 5.04 4.61 4.88 4.74 4.67 4.55 4.45 17 1-year 7.13 7.92 7.35 5.45 5.26 5.04 4.64 4.87 4.74 4.70 4.57 4.50 Auction average3, ,u 18 3-month 6.68 8.12 7.51 5.39 5.25 5.03 4.60 4.99 4.74 4.64 4.58 4.44 19 6-month 6.92 8.04 7.47 5.47 5.29 5.08 4.66 5.04 4.80 4.71 4.62 4.50 20 1-year 7.17 7.91 7.36 5.62 5.26 5.12 4.72 n.a. n.a. n.a. 4.72 n.a. U.S. TREASURY NOTES AND BONDS Constant maturities12 21 1-year 7.65 8.53 7.89 5.78 5.57 5.33 4.89 5.15 5.00 4.96 4.82 4.74 22 2-year 8.10 8.57 8.16 6.43 6.18 5.91 5.56 5.75 5.64 5.61 5.51 5.44 23 3-year 8.26 8.55 8.26 6.80 6.50 6.23 5.90 6.12 5.99 5.95 5.84 5.81 24 5-year 8.47 8.50 8.37 7.43 7.14 6.87 6.62 6.79 6.71 6.64 6.56 6.54 25 7-year 8.71 8.52 8.52 7.74 7.48 7.25 7.06 7.20 7.14 7.04 7.00 7.03 26 10-year 8.85 8.49 8.55 7.90 7.65 7.53 7.42 7.52 7.48 7.37 7.38 7.42 27 30-year 8.96 8.45 8.61 8.14 7.95 7.93 7.92 7.94 7.96 7.84 7.92 7.96 Composite13 28 Over 10 years (long-term) 8.98 8.58 8.74 8.17 7.96 7.88 7.83 7.87 7.87 7.76 7.82 7.86 STATE AND LOCAL NOTES AND BONDS Moody's series14 29 Aaa 7.36 7.00 6.96 6.62 6.51 6.28 6.24 6.32 6.24 6.32 6.20 6.20 30 Baa 7.83 7.40 7.29 6.95 6.87 6.70 6.58 6.68 6.54 6.69 6.55 6.55 31 Bond Buyer series15 7.68 7.23 7.27 6.90 6.80 6.68 6.73 6.69 6.71 6.69 6.75 6.78 CORPORATE BONDS 32 Seasoned issues, all industries16 10.18 9.66 9.77 9.16 9.03 8.99 8.93 9.00 8.98 8.89 8.92 8.93 Rating group 33 Aaa 9.71 9.26 9.32 8.75 8.61 8.55 8.48 8.58 8.55 8.43 8.46 8.46 34 Aa 9.94 9.46 9.56 8.99 8.86 8.83 8.78 8.83 8.81 8.74 8.78 8.79 35 A 10.24 9.74 9.82 9.26 9.11 9.08 9.01 9.07 9.05 8.97 8.99 9.00 36 Baa 10.83 10.18 10.36 9.65 9.51 9.49 9.45 9.52 9.50 9.42 9.44 9.46 37 A-rated, recently offered utility bonds17 10.20 9.79 10.01 9.25 9.05 9.02 8.95 8.98 8.92 8.87 9.04 8.98 MEMO: Dividend-price ratio18 38 Preferred stocks 9.23 9.05 8.96 8.04 7.88 7.84 7.81 7.93 7.84 7.73 7.83 7.85 39 Common stocks 3.64 3.45 3.61 3.10 3.15 3.14 3.15 3.09 3.11 3.05 3.20 3.22 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 of ten 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 11998899 11999900 Mar. Apr. May June July Aug. Sept. Oct. Nov. Prices and trading volume (averages of daily figures) Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 149.96 180.13 183.58 203.56 207.71 207.07 207.32 208.29 213.33 212.55 213.10 213.25 2 Industrial 180.83 228.04 225.89 255.36 260.16 260.13 261.16 262.48 268.22 266.21 265.68 264.89 3 Transportation 134.07 174.90 158.88 166.26 166.90 170.77 177.05 177.15 178.42 177.99 187.45 188.52 4 Utility 72.22 94.33 90.71 92.29 92.92 90.73 89.01 90.05 92.38 93.72 95.25 96.78 5 Finance 127.41 162.01 133.36 145.41 152.64 151.32 152.30 151.69 157.70 157.69 158.94 159.78 6 Standard & Poor's Corporation (1941-43 = 10)' 265.86 323.05 334.83 372.28 379.68 378.27 378.29 380.23 389.40 387.20 386.88 385.87 7 American Stock Exchange (Aug. 31, 1973 = 50? 295.06 356.67 338.58 353.98 365.02 362.67 366.06 364.33 367.38 369.55 376.82 382.38 Volume of trading (thousands of shares) 8 New York Stock Exchange 161,509 165,568 156,777 196,343 182,510 170,337 162,154 157,871 171,490 163,242 177,502 187,191 9 American Stock Exchange 9,955 13,124 13,155 15,326 13,140 10,995 11,477r 10,883 12,514r n.a. 13,764 14,487 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers 32,740 34,320 28,210 29,660 30,020 29,980 31,280 30,600 32,240 33,170 33,360 34,840 Free credit balances at brokers4 11 Margin accounts 5,660 7,040 8,050 7,320 6,975 7,200 6,690 6,545 7,040 6,950 6,965 7,040 12 Cash accounts 16,595 18,505 19,285 19,555 17,830 16,650 18,110 16,945 17,040 17,595 17,100 17,780 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 NonfinancialS tatistics • February 1992 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1990 1991 AAccccoouunntt 11998888 11998899 Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. SAIF-insured institutions 1 Assets 1,350,500 1,249,055 1,084,821 1,065,993 1,054,654 1,041,977 1,027,568 1,020,716 1,001,240 984,979 972,546 949,098 2 Mortgages 764,513 733,729 633,385 624,707 619,720 610,618 608,857 605,915 55%%,,002299 558866,,225555 557788,,225599 556666,,115522 3 Mortgage-backed securities 214,587 170,532 155,228 151,422 149,318 147,431 143,968 141,532 139,532 137,078 135,732 135,490 4 Contra-assets to mortgage assets' . 37,950 25,457 16,897 15,211 14,872 14,592 14,338 14,388 14,610 14,187 13,998 13,354 5 Commercial loans 33,889 32,150 24,125 23,669 23,205 22,294 21,903 21,724 20,647 20,301 20,398 18,511 6 Consumer loans 61,922 58,685 48,753 48,129 47,729 47,653 46,702 45,827 45,178 44,349 43,248 42,437 7 Contra-assets to nonmortgage loans . 3,056 3,592 1,939 1,700 1,876 1,827 1,742 1,739 1,745 1,674 1,535 1,392 8 Cash and investment securities 186,986 166,053 146,644 140,502 138,884 138,976 132,884 134,029 130,453 130,268 132,016 125,658 9 Other5 129,610 116,955 95,522 94,474 92,546 91,424 89,334 87,766 85,756 82,589 78,426 75,597 10 Liabilities and net worth . 1,350,500 1,249,055 1,084,821 1,065,993 1,054,654 1,041,977 1,027,568 1,020,716 1,001,240 984,979 972,546 949,098 11 Savings capital 971,700 945,656 835,4% 823,515 816,477 816,991 806,269 801,681 792,936 775,448 763,767 749,423 12 Borrowed money 299,400 252,230 197,353 188,900 183,660 169,412 164,274 159,636 151,474 146,902 142,908 132,728 13 FHLBB 134,168 124,577 100,391 95,819 94,658 90,555 86,779 82,312 78,966 76,104 74,424 68,787 14 Other 165,232 127,653 %,%2 93,081 89,002 78,857 77,495 77,324 72,508 70,798 68,484 63,941 15 Other 24,216 27,556 21,332 22,178 23,355 20,350 21,730 23,647 20,468 21,639 22,645 19,011 16 Net worth n.a. 23,612 30,640 31,400 31,162 35,223 35,295 35,751 36,728 40,989 43,226 47,937 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 97,247 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 -7,433 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 1990 1991 1990 1991 H2 HI H2 HI Sept. Oct. Nov. RECEIPTS 1 All sources 1,031,308 1,054,260 470,276 548,861 503,123 540,504 109,345 78,068 73,194 2 Individual income taxes, net 466,884 467,827 218,706 243,087 230,745 232,389 47,979 39,332 31,987 3 Withheld 388,384 404,152 193,296 190,219 207,469 193,440 30,758 37,291 32,448 4 Presidential Election Campaign Fund 32 32 3 30 3 31 0 0 0 5 Nonwithheld 151,285 142,693 33,303 117,675 31,728 109,405 19,145 3,725 1,743 6 Refunds 72,817 79,050 7,898 64,838 8,455 70,487 1,924 1,684 2,205 Corporation income taxes 7 Gross receipts 110,017 113,599 52,269 58,830 54,044 58,903 19,514 3,613 2.411 8 Refunds 16,510 15,513 6,842 8,326 7,603 7,904 934 2,442 895 9 Social insurance taxes and contributions, net 380,047 3%,011 162,574 210,476 178,468 214,303 34,042 28,435 31,502 10 Employment taxes and contributions2 353,891 370,526 152,407 195,269 167,224 199,727 33,439 27,022 28,835 11 Self-employment taxes and contributions 21,795 25,457 1,947 19,017 2,638 22,150 3,119 0 0 12 Unemployment insurance 21,635 20,922 7,909 12,929 8,9% 12,2% 234 971 2,293 13 Other net receipts 4,522 4,563 2,260 2,278 2,249 2,279 370 443 374 14 Excise taxes 35,345 42,430 16,799 18,153 17,535 20,703 4,038 3,640 4,200 15 Customs deposits 16,707 15,921 8,667 8,096 8,568 7,488 1,322 1,607 1.412 16 Estate and gift taxes 11,500 11,138 4,451 6,442 5,333 5,631 939 923 984 17 Miscellaneous receipts 27,316 22,847 13,651 12,106 16,032 8,991 2,446 2,%2 1,593 OUTLAYS 18 All types 1,251,776 1,322,989 587,394 640,867 647,218 631,737 116,174 114,045 118,660 19 National defense 299,331 272,514 149,613 152,733 149,497 122,089 21,929 23,792 25,794 20 International affairs 13,762 16,167 5,971 6,770 8,943 7,592 1,026 1,842 1,836 21 General science, space, and technology 14,444 15,946 7,091 6,974 8,081 7,4% 1,365 1,562 1,293 22 Energy 2,372 1,750 1,449 1,216 979 816 -573 640 667 23 Natural resources and environment 17,067 18,708 9,183 7,343 9,933 8,324 1,597 3,179 1,829 24 Agriculture 11,958 14,864 4,132 7,450 6,878 7,684 227 1,615 2,291 25 Commerce and housing credit 67,160 75,639 22,295 38,672 37,491 17,992 20,097 29 2,099 26 Transportation 29,485 31,531 14,982 13,754 16,218 14,748 2,764 2,891 2,882 27 Community and regional development 8,498 7,432 4,879 3,987 3,939 3,552 616 802 664 28 Education, training, employment, and social services 38,497 41,479 18,663 19,537 18,988 21,234 3,086 3,983 3,581 29 Health 57,716 71,183 25,339 29,488 31,424 35,608 7,031 7,194 7,283 30 Social security and medicare 346,383 373,495 162,322 175,997 176,353 190,247 30,884 32,659 32,186 31 Income security 147,314 171,618 67,950 78,475 75,948 88,778 12,189 13,695 15,778 32 Veterans benefits and services 29,112 31,344 14,864 15,217 15,479 14,326 1,322 3,086 4,060 33 Administration of justice 10,004 12,295 4,909 4,868 5,265 6,187 966 1,129 1,124 34 General government 10,724 11,358 4,760 4,916 6,976 5,212 1,181 2,056 1,303 3 3 6 5 U N n et d i i s n t t r e ib re u s t t e 6 d offsetting receipts i - 1 3 8 6 4 , , 6 2 1 2 5 1 - 1 3 9 9 5 , , 3 0 5 1 6 2 -1 8 8 7 , , 9 9 3 2 5 7 -1 9 7 1 , , 6 1 8 5 8 5 -1 9 9 4 , , 8 6 2 5 9 0 -1 9 8 8 , , 7 5 0 5 2 6 - 1 5 5 ,3 ,8 6 3 9 8 - 1 2 6 ,9 ,8 5 4 6 7 - 1 2 6 ,5 ,5 6 5 6 7 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 DomesticN onfinancialS tatistics • February 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 2881.1 2975.5 3081.9 3175.5 3266.1 3397.3 3491.7 3562.9 3598.9 2 Public debt securities 2857.4 2953.0 3052.0 3143.8 3233.3 3364.8 3465.2 3538.0 3665.3 3 Held by public 2180.7 2245.2 2329.3 2368.8 2437.6 2536.6 2598.4 2642.9 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 2829.8 2921.7 2988.9 3077.0 3161.2 3281.7 3377.1 3450.3 3569.3 9 Public debt securities 2829.5 2921.4 2988.6 3076.6 3160.9 3281.3 3376.7 3449.8 3569.0 10 Other debt2 .3 .3 .3 .4 .4 .4 .4 .4 .3 11 MEMO: Statutory debt limit 2870.0 3122.7 3122.7 3122.7 3195.0 4145.0 4145.0 4145.0 4145.0 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 TTyyppee aanndd hhoollddeerr 11998877 11998888 11998899 11999900 Q4 Q1 Q2 Q3 1 Total gross public debt 2431.7 2684.4 2953.0 3364.8 3364.8 3465.2 3538.0 3665.3 By type 2 Interest-bearing 2428.9 2663.1 2931.8 3362.0 3362.0 3441.4 3516.1 3662.8 3 Marketable 1724.7 1821.3 1945.4 2195.8 2195.8 2227.9 2268.1 2390.7 4 Bills 389.5 414.0 430.6 527.4 527.4 533.3 521.5 564.6 5 Notes 1037.9 1083.6 1151.5 1265.2 1265.2 1280.4 1320.3 1387.7 6 Bonds 282.5 308.9 348.2 388.2 388.2 399.3 411.2 423.4 7 Nonmarketable2 704.2 841.8 986.4 1166.2 1166.2 1213.5 1248.0 1272.1 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 holder5 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 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 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 international6 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 Aug. Sept. Oct. Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30 Nov. 6 Nov. 13 Nov. 20 Nov. 27 IMMEDIATE TRANSACTIONS2 By type of security U.S. Treasury securities 1 Bills 33,421 31,075 35,137 34,310 35,891 32,143 32,270 41,013 32,939 36,867 43,054 3333,,117722 Coupon securities, by maturity 2 Less than 3.5 years 43,814 36,102 37,973 38,802 36,533 31,117 38,517 43,925 45,321 40,130 4400,,995577 4433,,668822 3 3.5 to 7.5 years 32,184 28,216 35,346 33,414 37,857 32,910 34,330 37,930 30,990 33,303 33,703 35,448 4 7.5 to 15 years 17,292 13,490 16,120 14,265 15,842 13,898 16,091 18,244 21,859 24,781 18,278 13,000 5 15 years or more 17,076 13,580 15,732 14,071 15,902 16,287 14,888 15,822 19,192 27,845 17,930 12,646 Federal agency securities Debt, maturing in 6 Less than 3.5 years 4,380 4,381 4,429 4,995 3,794 4,539 4,256 5,087 3,503 4,090 3,977 44,,662244 7 3.5 to 7.5 years 666 674 563 759 534 431 609 563 738 737 683 527 8 7.5 years or more 649 601 720 634 490 780 888 686 1,061 943 698 618 Mortgage-backed securities 9 Pass-throughs 10,345 12,321 11,947r 11,532 11,763r 11,851 12,067 12,543 10,604 14,232 16,805 1155,,112299 10 All others 2,022 2,314 2,657r 2,772 2,149 3,091 2,546 2,831 2,489 3,336 2,752 3,249 By type of counterparty Primary dealers and brokers 11 U.S. Treasury securities 88,207 74,769 87,563 81,282 87,282 77,700 86,372 99,807 95,580 100,895 97,438 8877,,008855 Federal agency securities 12 Debt 1,424 1,457 1,583 1,677 1,281 1,695 1,432 1,957 1,224 1,542 1,237 1,251 13 Mortgage-backed 5,506 6,736 6,818r 6,368 6,667r 7,141 5,988 7,867 5,756 7,960 10,429 8,865 Customers 14 U.S. Treasury securities 55,580 47,696 52,745 53,580 54,743 48,655 49,724 57,128 54,721 62,031 56,484 5500,,886633 Federal agency securities 15 Debt 4,272 4,200 4,129 4,711 3,538 4,055 4,321 4,378 4,078 4,228 4,122 44,,551188 16 Mortgage-backed 6,862 7,899 7,787r 7,936 7,245 7,800 8,625 7,507 7,336 9,609 9,128 9,513 FUTURE AND FORWARD TRANSACTIONS4 By type of deliverable security U.S. Treasury securities 17 Bills 5,004 3,616 3,051 2,803 2,879 2,572 3,153 3,810 2,498 4,714 4,770 2,851 Coupon securities, by maturity 18 Less than 3.5 years 1,426 996 1,327 868 810 1,673 1,478 1,332 2,329 1,451 11,,442299 11,,666677 19 3.5 to 7.5 years 529 541 82 lr 673 708 1,023 785 758 1,171 646 764 890 20 7.5 to 15 years 1,145 881 941 690 815 925 1,054 1,041 1,079 1,434 1,384 1,101 21 15 years or more 9,267 8,235 9,300 7,862 8,049 9,901 10,090 9,757 9,199 12,835 10,724 9,707 Federal agency securities Debt, maturing in 22 Less than 3.5 years 41 45 88 45 27 5 164 181 60 30 114422 113399 23 3.5 to 7.5 years 51 51 37 210 34 26 14 10 12 24 83 140 24 7.5 years or more 12 33 24 17 7 10 12 74 8 11 72 142 Mortgage-backed 25 Pass-throughs 11,939 11,134 12,172 9,623 12,713 14,294 12,425 10,945 8,836 15,672 13,419 12,541 26 Others 1,742 2,012 2,337r 2,837 2,620 1,956 1,935 2,737 1,840 1,205 2,483 1,525 OPTION TRANSACTIONS5 By type of underlying security U.S. Treasury, coupon securities, by maturity 27 Less than 3.5 years 4,977 1,725 1,016 1,371 1,252 811 915 886 1,302 1,353 726 693 28 3.5 to 7.5 years 162 340 411 1,008 220 205 475 346 1,206 668 488 319 29 7.5 to 15 years 487 337 382 310 553 403 325 263 453 578 862 174 30 15 years or more 22,,779922 22,,555511 22,,221133 22,,447711 1,602 22,,339966 2,027 2,334 4,168 4,140 4,247 1,962 Federal agency, mortgagebacked securities 31 Pass-throughs 379 603 0 1,444 692 509 382 222 296 585 371 127 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 • February 1992 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 1991 1991, week ending Item Aug. Sept. Oct. Sept. 25 Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30 Nov. 6 Nov. 13 Nov. 20 Positions2 NET IMMEDIATE TRANSACTIONS3 By type of security U.S. Treasury securities 1 Bills 15,391 15,937 15,720r 21,374 15,848 13,836 13,013 18,827 16,581 19,828 16,398 15,573 Coupon securities, by maturity 2 Less than 3.5 years 1,488 4,092 6,434r 7,184 7,838 6,483 4,967 9,058 4,256 10,430 9,382 5,765 3 3.5 to 7.5 years 2,988 589 -2,979r 1,308 -3,439 -1,950 -1,803 -5,109 -2,462 -6,208 -8,067 -10,225 4 7.5 to 15 years -4,055 -4,912 -3,659r -5,304 -3,726 -3,484 -2,856 -4,268 -4,322 -1,467 -4,034 -3,466 5 15 years or more -13,686 -12,134 -8,142r -11,624 -9,650 -7,331 -7,732 -8,447 -7,919 -13,093 -9,280 -3,637 Federal agency securities Debt, maturing in 6 Less than 3.5 years 5,726 4,762 4,032r 5,194 3,615 3,743 4,665 5,061 2,877 3,332 3,994 4,653 7 3.5 to 7.5 years 1,853 1,883 1,926r 1,817 1,774 1,908 1,943 1,853 2,026 2,034 2,127 2,349 8 7.5 years or more 5,036 5,082 5,033r 5,078 5,155 5,158 5,106 4,827 5,043 4,762 44,,331199 44,,119955 Mortgage-backed securities 9 Pass-throughs 31,145 29,377 25,712r 28,865 16,851 24,405 28,460 28,443 23,981 26,339 30,512 35,559 10 All others 11,274 12,611 14,41r 13,572 14,413 13,349 15,825 14,143 14,299 14,610 13,735 15,918 Other money market instruments 11 Certificates of deposit 3,115 3,020 3,355r 3,014 3,320 2,825 3,485 3,346 3,849 2,838 3,456 3,481 12 Commercial paper 6,300 5,912 6,48 r 5,572 5,955 5,462 7,108 6,080 7,381 6,792 7,204 5,404 13 Bankers acceptances 1,319 1,575 l,495r 1,489 1,339 1,488 1,696 1,140 1,692 1,542 1,676 1,331 FUTURE AND FORWARD TRANSACTIONS5 By type of deliverable security U.S. Treasury securities 14 Bills -12,840 -7,828 -8,523 -8,445 -5,909 -7,549 -9,161 -8,621 -9,506 -8,532 -10,164 -12,389 Coupon securities, by maturity 15 Less than 3.5 years 984 1,615 l,195r 1,602 1,790 1,291 1,071 967 1,384 463 1,005 86 16 3.5 to 7.5 years -1,113 -868 -l,553r -1,241 -952 -766 -1,924 -2,019 -1,677 -1,551 -1,356 -1,994 17 7.5 to 15 years -2,316 -1,892 -l,061r -1,502 -2,081 -1,430 -856 -437 -1,429 345 -712 -1,005 18 15 years or more -5,214 -5,582 -3,551r -5,442 -5,275 -4,689 -4,103 -2,344 -3,148 455 -275 --44,,338833 Federal agency securities Debt, maturing in 19 Less than 3.5 years -41 -41 35r -55 54 -64 21 101 80 20 54 -1 20 3.5 to 7.5 years 68 -1 -58 5 -102 -121 -52 -2 63 -59 28 21 7.5 years or more 29 -26 -18r -92 -11 -56 -2 -37 15 11 0 30 Mortgage-backed securities 22 Pass-throughs -18,722 -18,899 -15,336r -18,369 -8,804 -13,466 -20,329 -17,278 -12,342 -13,903 -18,225 -21,511 23 All others 1,934 1,994 l,275r 2,582 1,693 491 12 2,707 1,667 1,988 1,878 1,657 24 Certificates of deposit -102,587 -128,658 -153,645r -140,293 -148,460 -158,034 -151,897 -151,431 -152,339 -170,176 -164,723 -184,690 Financing6 Reverse repurchase agreements 25 Overnight and continuing 194,528 189,584 182,835r 172,721 185,101 183,560 190,921 173,955 182,466 181,381 180,831 193,464 26 Term 244,421 247,564 251,079r 255,320 232,936 252,760 245,959 257,128 252,322 260,401 270,775 243,308 Repurchase agreements 27 Overnight and continuing 306,936 296,224 287,307r 284,569 291,072 286,352 294,489 283,271 284,866 281,537 275,784 300,749 28 Term 224,357 227,932 234,937r 244,141 207,237 232,550 228,455 243,006 242,167 245,312 260,551 237,837 Securities borrowed 29 Overnight and continuing 62,248 61,963 59,052r 61,686 57,729 58,548 57,695 59,490 60,827 59,239 60,457 63,251 30 Term 22,568 22,150 23,690"^ 24,294 22,191 25,008 24,023 21,843 24,119 25,057 25,908 27,247 Securities loaned 31 Overnight and continuing 7,995 8,725 9,304r 10,264 8,640 8,346 10,135 9,620 9,327 9,137 9,256 10,129 32 Term 791 1,416 742r 3,900 804 816 817 865 479 554 511 632 Collateralized loans 33 Overnight and continuing 8,588 8,520 8,547 8,632 8,238 8,311 9,343 8,370 8,051 9,941 10,805 9,642 MEMO: Matched book7 Reverse repurchases 34 Overnight and continuing 129,272 127,648 124,310r 117,395 123,571 125,865 130,327 117,562 123,866 123,131 122,262 134,835 35 Term 198,749 197,099 205,104r 205,340 189,269 205,723 199,229 209,371 209,807 210,788 214,846 197,454 Repurchases 36 Overnight and continuing 159,234 149,490 114433,,445500rr 135,033 148,434 145,581 144,501 135,493 147,118 141,217 133,231 151,640 37 Term 166,164 169,284 181,206T 178,568 158,834 180,559 175,047 186,484 187,542 192,282 200,9% 179,090 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 Digitized for FRAFoSrwEaRrd 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 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 Agency 1987 1988 1989 1990 May June July Aug. Sept. 1 Federal and federally sponsored agencies 341,386 381,498 411,805 434,668 432,306 429,179 432,587 437,892' 436,139 2 Federal agencies 37,981 35,668 35,664 42,159 41,031 40,591 40,380 40,923r 42,409 3 Defense Department1 13 8 7 7 7 7 7 7 7 4 Export-Import Bank2' 11,978 11,033 10,985 11,376 11,186 11,244 11,244 11,244 11,268 5 Federal Housing Administration 183 150 328 393 407 428 300 315 336 6 Government National Mortgage Association participation certificates 1,615 0 0 0 0 0 0 0 0 7 Postal Service6 6,103 6,142 6,445 6,948 6,651 6,651 6,621 6,621 8,420 8 Tennessee Valley Authority 18,089 18,335 17,899 23,435 22,780 22,261 22,208 22,745r 22,378 9 United States Railway Association 0 0 0 0 0 0 0 0 0 10 Federally sponsored agencies7 303,405 345,830 375,407 392,509 391,275 388,588 392,207 3%,%9r 393,730 11 Federal Home Loan Banks 115,727 135,836 136,108 117,895 108,981 105,775 106,397 107,469' 106,510 12 Federal Home Loan Mortgage Corporation 17,645 22,797 26,148 30,941 29,016 28,836 29,559r 31,650r 31,502 13 Federal National Mortgage Association 97,057 105,459 116,064 123,403 126,806 126,606 128,764 128,589 127,460 14 Farm Credit Banks8 55,275 53,127 54,864 53,590 51,485 51,712 51,318r 52,056' 52,010 15 Student Loan Marketing Association 16,503 22,073 28,705 34,194 35,560 36,232 36,742 37,778 36,821 16 Financing Corporation 1,200 5,850 8,170 8,170 8,170 8,170 8,17c 8,170 8,170 17 Farm Credit Financial Assistance Corporation11 0 690 847 1,261 1,261 1,261 1,261 1,261 1,261 18 Resolution Funding Corporation12 0 0 4,522 23,055 29,9% 29,9% 29,9% 29,9% 29,9% MEMO 19 Federal Financing Bank debt13 152,417 142,850 134,873 179,083 182,582 185,129 186,752 188,920 194,234 Lending to federal and federally sponsored agencies 20 Export-Import Bank 11,972 11,027 10,979 11,370 11,180 11,238 11,238 11,238 11,262 21 Postal Service6 5,853 5,892 6,195 6,698 6,401 6,401 6,401 6,401 8,200 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 13,400 12,881 12,828 12,373 11,875 24 United States Railway Association6 0 0 0 0 0 0 0 0 0 Other Lending14 25 Farmers Home Administration 59,674 58,4% 53,311 52,324 52,669 52,254 51,334 51,334 50,694 26 Rural Electrification Administration 21,191 19,246 19,265 18,890 18,878 18,894 18,832 18,846 18,597 27 Other 32,078 26,324 23,724 70,8% 75,204 78,611 81,269 83,878 88,756 1. Consists of mortgages assumed by the Defense Department between 1957 shown on line 22. and 1%3 under family housing and homeowners assistance programs. 10. The Financing Corporation, established in August 1987 to recapitalize the 2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976. Federal Savings and Loan Insurance Corporation, undertook its first borrowing in 3. On-budget after Sept. 30, 1976. October 1987. 4. Consists of debentures issued in payment of Federal Housing Administration 11. The Farm Credit Financial Assistance Corporation, established in January insurance claims. Once issued, these securities may be sold privately on the 1988 to provide assistance to the Farm Credit System, undertook its first securities market. borrowing in July 1988. 5. Certificates of participation issued before fiscal 1%9 by the Government 12. The Resolution Funding Corporation, established by the Financial Institu- National Mortgage Association acting as trustee for the Fanners 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 • February 1992 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1991 TTyyppee ooff ii oo ss rr ss uu uu ee ss ee oo rr iissssuueerr,, 11998888 11998899 11999900 Apr. May June July Aug. Sept. Oct. Nov. 1 All issues, new and refunding1 114,522 113,646 120,339 10,916 14,753 13,804 11,629 15,744 13,240 11,357 17,734 By type of issue 2 General obligation 30,312 35,774 39,610 3,771 4,946 4,442 3,900 5,919 5,253 3,088 6,510 3 Revenue 84,210 77,873 81,295 7,145 9,807 9,362 7,729 9,825 7,987 8,269 11,224 By Type of issuer 4 State 8,830 11,819 15,149 1,199 1,890 1,529 650 2,328 3,371 7,195 1,171 5 Special district or statutory authority2 74,409 71,022 72,661 6,604 9,549 5,057 7,320 8,890 6,272 605 10,817 6 Municipality, county, or township 31,193 30,805 32,510 3,113 3,314 7,218 3,659 4,526 3,597 3,557 5,746 7 Issues for new capital, total 79,665 84,062 103,235 6,919 11,191 10,008 9,513 12,164 9,586 8,%7 13,495 By use of proceeds 8 Education 15,021 15,133 17,042 2,001 2,462 2,684 2,214 1,826 1,244 1,524 1,297 9 Transportation 6,825 6,870 11,650 1,305 1,642 1,829 621 1,498 1,249 1,476 2,682 10 Utilities and conservation 8,4% 11,427 11,739 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 1,915 11 Social welfare 19,027 16,703 23,099 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 2,621 12 Industrial aid 5,624 5,036 6,117 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 349 13 Other purposes 24,672 28,894 34,607 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 4,631 1. Par amounts of long-term issues based on date of sale. SOURCES. Investment Dealer's Digest beginning April 1990. Securities Data1 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 iissssuuee,, ooffffeerriinngg,, 11998888 11998899 11999900 oorr iissssuueerr Mar. Apr. May June July Aug. Sept. Oct. 1 All issues' 410,898 379,535 339,551 36,451r 34,058r 37,480r 31,938r 23,070r 36,056r 32,087r n.a. 2 Bonds2 353,097 321,664 299,313 32,502r 28,745r 30,062r 26,320' 20,388r 29,326r 26,666r n.a. By type of offering 3 Public, domestic 202,215 181,393 189,271 29,999"^ 24,888r 27,231r 23,899r 18,833r 27,456r 23,770r 24,000 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 2,503 3,857 2,830 2,421 1,555 1,870 2,897 2,300 By industry group 6 Manufacturing 70,306 76,656 53,110 7,240 7,613 6,609 4,238 3,827 8,240 6,873 4,347 7 Commercial and miscellaneous 62,794 49,744 40,019 l,764r 2,%lr UHT l,773r UOC l,388r l,012r n.a. 8 Transportation 10,275 10,032 12,706 992 502 665 567 697 959 231 n.a. 9 Public utility 20,834 18,688 17,521 506 2,115 2,682 1,706 1,420 1,947 1,370 n.a. 10 Communication 5,593 8,461 6,664 988 845 337 1,838 715 668 408 n.a. 11 Real estate and financial 183,294 158,083 169,287 21,012r 14,7^ 18,559r 16,198r 12,230^ 16,124r 16,773 15,727 12 Stocks2 57,802 57,870 40,165 3,949 5,313 7,418 5,618 2,682 6,730 5,421 8,864 By type of offering 13 Public preferred 6,544 6,194 3,998 1,233 543 1,392 1,731 203 1,952 666 3,527 14 Common 35,911 26,030 19,443 2,716 4,771 6,027 3,887 2,479 4,778 4,755 5,337 15 Private placement3 15,346 25,647 16,736 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 5,649 564 1,7% 2,291 1,909 685 3,167 1,842 3,623 17 Commercial and miscellaneous 8,449 7,446 10,171 1,096 1,521 1,563 851 1,427 2,050 858 2,095 18 Transportation 1,535 1,929 369 249 416 277 0 18 56 0 16 19 Public utility 1,898 3,090 416 354 71 573 471 143 150 55 320 20 Communication 515 1,904 3,822 0 0 0 295 46 8 0 25 21 Real estate and financial 37,798 34,028 19,738 1,686 1,510 2,714 2,091 350 1,298 2,666 2,622 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 Mar. Apr. May June July Aug. Sept.r Oct. 1 Sales of own shares2 306,445 345,780 31,597 40,356 36,719 33,922 39,329 38,014 37,316 45,220 272,165 289,573 25,372 32,895 26,972 27,629 28,767 28,128 26,319 27,957 3 Net sales3 34,280 56,207 6,226 7,461 9,747 6,293 10,562 9,886 10,997 17,263 4 Assets4 553,871 570,744 632,052 647,053 671,852 661,643 690,486 712,782 730,426 755,332 5 Cash5 44,780 48,638 52,895 52,982 55,450 55,057 55,293 52,791 53,884 59,842 6 Other 509,091 522,106 579,154 594,071 616,402 606,586 635,193 659,992 676,543 695,490 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 underwritmgs 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 1989 1990R 1991R AAccccoouunntt 11998888RR 11998899RR 11999900RR Q4R Q1 Q2 Q3 Q4 Q1 Q2 Q3 1 Profits with inventory valuation and capital consumption adjustment 365.0 351.7 319.0 334.7 340.2 339.8 299.8 296.1 302.1 303.5 306.1 2 Profits before taxes 347.5 344.5 332.3 332.8 336.6 331.6 335.1 326.1 309.1 306.2 318.2 3 Profits tax liability 137.0 138.0 135.3 129.8 137.6 137.9 138.8 127.1 119.4 123.5 128.6 4 Profits after taxes 210.5 206.6 197.0 203.0 199.1 193.7 196.3 199.0 189.7 182.7 189.6 5 Dividends 115.3 127.9 133.7 130.7 132.3 132.5 133.8 136.2 137.8 136.7 138. R 6 Undistributed profits 95.2 78.7 63.3 72.3 66.7 61.2 62.5 62.8 51.9 46.1 51.5 7 Inventory valuation n.a. n.a. n.a. -13.5 -6.6 3.8 -32.6 -21.2 6.7 9.9 -4.8R 8 Capital consumption adjustment n.a. n.a. n.a. 15.4 10.2 4.4 -2.7 -8.8 -13.6 -12.6 -7.3R 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 1992 IInndduussttrryy 11999900 11999911 1199992211 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ql' 1 Total nonfarm business 532.61 529.97 558.60 534.55 534.11 530.13 535.50 524.57 527.86 531.96 563.31 Manufacturing 2 Durable goods industries 82.58 77.04 79.38 84.15 82.48 79.03 81.24 79.69 74.51 72.74 80.58 3 Nondurable goods industries 110.04 107.27 104.68 110.87 111.57 110.69 109.90 107.66 102.54 108.98 107.52 Nonmanufacturing 4 Mining 9.88 10.06 9.50 9.77 9.97 10.12 9.89 10.09 10.09 10.15 10.58 Transportation 5 Railroad 6.40 5.84 6.78 6.67 5.66 6.81 5.59 6.27 6.50 5.02 5.52 6 Air 8.87 9.84 12.34 9.37 9.55 7.54 11.18 10.10 9.81 8.27 12.88 7 Other 6.20 6.50 7.12 5.90 5.87 6.82 6.48 6.68 6.52 6.32 6.41 Public utilities 8 Electric 44.10 43.56 47.34 42.83 43.80 45.88 43.36 42.87 43.09 44.90 48.54 9 Gas and other 23.11 22.42 24.10 21.80 23.88 24.36 23.68 21.71 23.38 20.92 22.98 10 Commercial and other2 241.43 247.44 267.35 243.18 241.32 238.87 244.19 239.50 251.42 254.66 268.28 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 • February 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 388.1 426.2 445.7 445.7 452.8 468.8 474.0 486.7 478.9 487.9 2 Consumer 141.1 146.2 140.8 140.8 137.9 138.6 140.9 136.0 131.6 133.9 3 Business 207.4 236.5 256.0 256.0 262.9 274.8 275.4 290.8 290.0 295.5 4 Real estate 39.5 43.5 48.9 48.9 52.1 55.4 57.7 59.9 57.3 58.5 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 May June July Aug. Sept. Oct. 1 Total 234,891 258,957 292,638 297,171 298,228 300,161 305,024 307,599 310,876 Retail financing of installment sales 2 Automotive 37,210 39,479 38,110 36,005 35,390 35,491 34,665 34,119 34,167 3 Equipment 28,185 29,627 31,784 32,690 32,189 32,194 33,146 34,822 33,989 4 Pools of securitized assets n.a. 698 951 737 707 793 833 797 769 Wholesale 5 Automotive 32,953 33,814 32,283 30,055 29,305 29,454 30,637 30,072 31,831 6 Equipment 5,971 6,928 11,569 11,000 10,427 11,344 10,631 10,594 11,075 7 All other 9,357 9,985 9,126 8,620 8,851 8,807 8,712 8,695 8,407 8 Pools of securitized assets n.a. 0 2,950 2,855 2,805 2,843 3,508 4,053 4,458 Leasing 9 Automotive 24,693 26,804 39,129 40,738 41,603 43,024 44,628 45,387 45,837 10 Equipment 57,658 68,240 75,626 84,126 83,961 84,311 86,145 86,732 87,701 11 Pools of securitized assets2 n.a. 1,247 1,849 1,700 1,725 1,750 1,679 1,844 1,803 12 Loans on commercial accounts receivable and factored commercial accounts receivable 17,687 18,511 22,475 21,772 24,040 23,125 23,366 23,204 23,295 13 All other business credit 21,176 23,623 26,784 26,873 27,225 27,025 27,073 27,279 27,544 Net change (during period) 1 Total 28,899 24,066 33,681 2,601 1,057 1,933 4,862 2,576 3,277 Retail financing of installment sales 2 Automotive 11,,007711 2,269 --11,,336699 -647 --661155 100 -825 -547 48 3 Equipment 3,111 1,442 2,157 656 -501 4 952 1,676 -833 4 Pools of securitized assets n.a. -26 253 -40 -30 86 40 -36 -28 Wholesale 5 Automotive 2,883 861 -1,532 -11 -750 149 1,183 -564 1,759 6 Equipment 393 957 4,641 63 -573 917 -713 -37 481 7 All other 1,028 628 -859 -47 231 -44 -95 -17 -289 8 Pools of securitized assets2 n.a. 0 2,950 -50 -50 38 665 545 405 Leasing 9 Automotive 2,596 2,111 12,325 1,031 865 1,421 1,604 759 450 10 Equipment 14,166 10,581 7,386 1,377 -165 350 1,834 587 969 11 Pools of securitized assets n.a. 526 602 -65 25 25 -71 165 -41 12 Loans on commercial accounts receivable and factored commercial accounts receivable -483 825 3,964 506 2,268 -914 240 -162 91 13 All other business credit 4,135 2,446 3,161 -173 352 -199 47 207 264 Digitized for FRAS1. EDRat a in 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.stlorueilseafesed. .Foorrg o/r dering 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 IItteemm May June July Aug. Sept. Oct. Nov. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms1 1 Purchase price (thousands of dollars) 150.0 159.6 153.2 146.8 166.7 165.1 159.0 157.8 153.4 162.6 2 Amount of loan (thousands of dollars) 110.5 117.0 112.4 109.2 121.9 121.6 115.7 114.3 115.0 116.0 3 Loan-price ratio (percent) 75.5 74.5 74.8 75.2 74.2 75.0 74.6 73.3 76.5 73.5 4 Maturity (years) 28.0 28.1 27.3 26.1 26.8 27.0 27.1 25.9 27.5 26.4 5 Fees and charges (percent of loan amount) 2.19 2.06 1.93 1.54 1.69 1.85 1.74 1.86 1.61 1.53 6 Contract rate (percent per year) 8.81 9.76 9.68 9.26 9.18 9.12 9.19 9.00 8.78 8.38 Yield (percent per year) 1 OTS series3 9.18 10.11 10.01 9.52 9.46 9.43 9.48 9.30 9.04 8.64 8 HUD series4 10.30 10.21 10.08 9.46 9.60 9.46 9.22 8.88 8.76 n.a. SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (HUD series)5 10.49 10.24 10.17 9.62 9.71 9.59 9.14 9.06 8.71 n.a. 10 GNMA securities6 9.83 9.71 9.51 8.65 9.04 8.93 8.69 8.60 8.34 8.09 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 101,329 104,974 113,329 121,798 122,806 123,770 124,230 124,954 125,884 126,624 12 FHA/VA-insured 19,762 19,640 21,028 21,609 21,474 21,511 21,529 21,636 21,576 21,547 13 Conventional 81,567 85,335 92,302 100,189 101,332 102,259 102,701 103,318 104,308 105,077 Mortgage transactions (during period) 14 Purchases 23,110 22,518 23,959 4,450 3,145 3,183 3,069 3,032 3,408 3,299 Mortgage commitments (during period)1 15 Issued8 n.a. n.a. 23,689 3,506 3,032 2,975 3,453 3,196 4,122 3,806 16 To sell9 n.a. n.a. 5,270 1,066 841 1,374 1,051 762 917 569 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period f 17 Total 15,105 20,105 20,419 24,525 23,649 24,061 24,217 23,906 n.a. n.a. 18 FHA/VA-insured 620 590 547 491 486 481 475 471 n.a. n.a. 19 Conventional 14,485 19,516 19,871 21,843 23,164 23,581 23,742 23,435 n.a. n.a. Mortgage transactions (during period) 20 Purchases 44,077 78,588 75,517 8,562 10,052 8,649 9,191 9,155 n.a. n.a. 21 Sales 39,780 73,446 73,817 7,692 10,694 8,057 8,803 9,305 7,433 8,517 Mortgage commitments (during period)10 22 Contracted 66,026 88,519 102,401 11,334 9,008 8,890 12,430 7,468 n.a. 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. 7. 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 NonfinancialS tatistics • February 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 Q1 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 2,669,9% 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 institutions 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 Administration5 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 Farmers 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 11998899 11999900 Feb. Mar. Apr. May June July Aug. Sept.r Oct. Seasonally adjusted 1 Total 718,863 735,102 732,762 732,442 733,621 732,289 730,591 729,962 729,108 729,151 729,953 2 Automobile 290,676 284,585 282,626 280,689 279,746 276,494 274,4% 273,565 271,906 270,223 270,051 3 Revolving 199,082 220,110 221,556 224,817 225,994 227,301 227,737 228,199 229,453 232,070 233,412 4 Mobile home 22,471 20,919 20,200 20,123 20,098 19,7% 19,907 19,615 19,495 18,892 18,764 5 Other 206,633 209,487 208,379 206,813 207,782 208,697 208,451 208,582 208,253 207,966 207,725 Not seasonally adjusted 6 Total 730,901 748,300 729,264 725,462 727,907 727,717 728,023 727,754 731,531 732,183 730,359 By major holder 7 Commercial banks 342,770 347,466 339,282 335,754 336,425 334,746 333,442 334,273 335,662 335,509 335,403 8 Finance companies 140,832 137,450 133,021 131,552 133,462 134,045 133,903 134,120 135,509 132,471 131,778 9 Credit unions 93,114 92,911 91,131 90,772 91,413 91,549 91,924 92,017 92,843 93,305 93,388 10 Retailers 44,154 43,552 38,864 38,497 37,817 36,782 36,702 36,392 37,2% 37,281 37,359 11 Savings institutions 57,253 45,616 43,875 42,491 41,707 40,764 39,827 39,012 37,893 37,036 35,774 12 Gasoline companies 3,935 4,822 4,404 4,2% 4,357 4,507 4,591 4,712 4,857 4,753 4,529 13 Pools of securitized assets 48,843 76,483 78,687 82,100 82,726 85,324 87,634 87,228 87,471 91,828 92,128 By major type of credit* 14 Automobile 290,705 284,813 279,913 277,798 277,508 275,582 275,018 227744,,222222 274,190 273,358 227722,,113300 15 Commercial banks 126,288 126,259 124,745 123,411 122,710 121,631 121,605 121,319 120,577 119,730 119,276 16 Finance companies 82,721 74,3% 70,287 69,233 70,500 69,689 70,304 70,444 71,571 69,853 69,364 17 Pools of securitized assets2 18,235 24,537 26,872 27,755 26,875 27,085 26,039 25,609 25,071 26,812 26,803 18 Revolving 210,310 232,370 220,714 221,400 222,627 224,301 225,5% 226,145 229,224 231,281 231,615 19 Commercial banks 130,811 132,433 125,673 124,619 126,009 126,047 124,106 124,645 125,787 125,524 126,235 20 Retailers 39,583 39,029 34,509 34,179 33,513 32,458 32,381 32,076 32,%2 32,964 33,055 21 Gasoline companies 3,935 4,822 4,404 4,2% 4,357 4,507 4,591 4,712 4,857 4,753 4,529 22 Pools of securitized assets2 23,477 44,335 44,451 46,722 47,116 49,667 52,897 53,094 54,017 56,438 56,290 23 Mobile home 22,240 20,666 20,362 20,030 20,052 19,721 19,875 19,639 19,468 18,996 18,847 24 Commercial banks 9,112 9,763 9,730 9,632 9,565 9,386 9,652 9,552 9,534 9,614 9,600 25 Finance companies 4,716 5,252 5,330 5,328 5,573 5,595 5,652 5,669 5,700 5,300 5,358 26 Other 207,646 210,451 208,275 206,234 207,720 208,113 207,534 207,748 208,649 208,548 207,767 27 Commercial banks 76,559 79,011 79,134 78,092 78,141 77,682 78,079 78,757 79,764 80,641 80,292 28 Finance companies 53,395 57,801 57,404 56,991 57,388 58,761 57,947 58,007 58,238 57,318 57,056 29 Retailers 4,571 4,523 4,355 4,318 4,304 4,324 4,321 4,316 4,334 4,317 4,304 30 Pools of securitized assets2 7,131 7,611 7,364 7,603 8,735 8,572 8,698 8,525 8,383 8,578 9,035 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 • February 1992 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1 Percent per year, except as noted 1991 IItteemm 11998888 11998899 11999900 Apr. May June July Aug. Sept. Oct. INTEREST RATES Commercial banks? 1 48-month new car3 10.85 12.07 11.78 n.a. 11.28 n.a. n.a. 11.06 n.a. n.a. 2 24-month personal 14.68 15.44 15.46 n.a. 15.16 n.a. n.a. 15.24 n.a. n.a. 3 120-month mobile home3 13.54 14.11 14.02 n.a. 13.80 n.a. n.a. 13.73 n.a. n.a. 4 Credit card 17.78 18.02 18.17 n.a. 18.22 n.a. n.a. 18.24 n.a. n.a. Auto finance companies 5 New car 12.60 12.62 12.54 13.14 12.95 12.77 12.55 12.40 12.38 n.a. 6 Used car 15.11 16.18 15.99 15.82 15.85 15.74 15.66 15.63 15.60 n.a. OTHER TERMS4 Maturity (months) 7 New car 56.2 54.2 54.6 55.4 55.5 55.5 55.5 55.4 55.4 n.a. 8 Used car 46.7 46.6 46.1 47.3 47.3 47.3 47.4 47.2 47.2 n.a. Loan-to-value ratio 9 New car 94 91 87 87 87 88 88 88 87 n.a. 10 Used car 98 97 95 97 % 97 96 97 % n.a. Amount financed (dollars) 11 New car 11,663 12,001 12,071 11,993 12,204 12,343 12,572 12,518 12,460 n.a. 12 Used car 7,824 7,954 8,289 8,751 8,873 8,916 8,989 8,902 8,9% n.a. 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 Ql Q2 Q3 Q4 Ql Q2 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors 639.3 620.2 803.4 596.9 657.7 499.3 By lending sector and instrument 2 U.S. government 215.0 144.9 157.5 151.6 272.5 185.0 247.3 228.2 286.1 328.4 3 Treasury securities 214.7 143.4 140.0 150.0 264.4 189.6 217.8 222.9 287.5 329.4 4 Agency issues and mortgages .4 1.5 17.4 1.6 8.2 -4.6 29.6 5.4 -1.3 -1.0 5 Private 621.9 542.1 603.3 526.6 366.8 435.2 368.7 371.6 170.9 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 7 Tax-exempt obligations 22.7 49.3 49.8 30.4 20.1 19.1 12.4 24.5 30.0 13.5 8 Corporate bonds 126.8 79.4 102.9 73.7 49.7 87.4 30.2 68.8 32.8 67.1 9 Mortgages 316.3 324.5 306.5 275.7 228.3 240.5 348.4 216.0 212.7 136.3 10 Home mortgages 218.7 234.9 231.0 218.0 212.6 214.3 298.7 220.0 184.7 147.1 11 Multifamily residential 33.5 24.4 16.7 16.4 6.5 9.5 22.7 -15.5 16.2 2.7 12 Commercial 73.6 71.6 60.8 42.7 9.3 19.9 26.5 13.4 9.9 -12.8 13 Farm -9.5 -6.4 -2.1 -1.5 .0 -3.2 .5 -1.9 2.0 -.7 14 Other debt instruments 156.1 88.9 144.1 146.8 68.7 88.2 165.1 59.4 96.0 -45.9 15 Consumer credit 58.0 33.5 50.2 39.1 14.3 44.1 30.4 2.8 21.3 2.5 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 17 Open market paper -9.3 2.3 11.9 20.4 9.7 -6.9 69.6 -6.2 17.3 -41.7 18 Other 40.5 43.2 42.2 47.4 43.4 43.3 48.8 47.4 60.0 17.5 By borrowing sector 19 State and local government 36;2 48.8 45.6 29.6 17.2 16.5 16.0 17.2 28.1 7.6 20 Household 293.0 302.2 314.9 285.0 254.0 291.8 377.2 257.5 227.3 154.0 21 Nonfinancial business 292.7 191.0 242.8 211.9 95.6 126.9 162.9 94.0 116.2 9.4 22 Farm -16.3 -10.6 -7.5 1.6 2.6 8.9 6.2 -10.8 11.7 3.1 23 Nonfarm noncorporate 99.2 77.9 65.7 50.8 13.7 35.0 45.5 3.5 19.6 -14.0 24 Corporate 209.7 123.7 184.6 159.5 79.4 83.1 111.2 101.3 84.8 20.2 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 26 Bonds 3.1 7.4 6.9 5.3 21.6 -1.0 32.7 25.8 1.2 26.5 27 Bank loans n.e.c -1.0 -3.6 -1.8 -.1 -2.9 -4.3 -6.9 -1.8 1.9 -4.7 28 Open market paper 11.5 2.1 8.7 13.3 12.3 22.2 -16.4 23.1 27.3 15.3 29 U.S. government loans -3.9 -1.4 -7.5 -7.5 -7.5 .1 -7.3 -5.9 -.8 -16.0 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 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 Domestic Nonfinancial Statistics • February 1992 1.57—Continued 1989 1990 1991 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998866 11998877 11998888 11998899 11999900 Q4 Q1 Q2 Q3 Q4 Q1 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 nonflnancial 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 Nonflnancial 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 Q1 Q2 Q3 Q4 Q1 Q2 1 Total funds advanced in credit markets to 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 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 3 U.S. government securities 69.4 70.1 85.2 30.7 74.4 27.1 4.4 111.9 139.1 4422..11 112222..66 7744..44 4 Residential mortgages 136.3 139.1 86.3 137.9 184.1 178.3 197.5 191.5 160.8 186.7 176.0 211.4 5 Federal Home Loan Bank advances to thrifts 19.8 24.4 19.7 -11.0 -24.7 -48.8 -22.0 -30.9 -30.5 -15.5 -27.9 -52.9 6 Other loans and securities 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 7 U.S. government 9.7 -7.9 -9.4 -2.4 33.6 5.7 37.7 36.2 63.3 -2.7 30.3 32.1 8 Sponsored credit agencies and mortgage pools 153.3 169.3 112.0 125.3 166.7 158.4 187.4 163.1 165.6 150.8 158.7 149.0 9 Monetary authority 19.4 24.7 10.5 -7.3 8.1 -4.6 -6.3 40.4 24.4 -25.9 53.3 12.2 10 Foreign 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 1 11 Sponsored credit agencies and mortgage pools 154.1 171.8 119.8 151.0 167.4 156.4 171.7 184.0 113399..22 117744..66 115555..88 115500..66 12 Foreign 9.7 4.5 6.3 10.9 23.5 16.9 2.0 41.2 29.7 21.1 50.6 -53.0 13 Total private domestic funds advanced 720.5 614.5 676.2 652.5 568.5 589.7 755.3 522.7 501.0 495.0 343.2 309.2 14 U.S. government securities 300.1 247.4 192.1 271.9 365.6 314.3 414.6 300.3 286.2 461.4 237.8 317.9 15 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 16 Corporate and foreign bonds 89.7 66.9 91.3 66.1 65.4 70.6 53.4 82.6 31.8 93.8 66.0 94.1 17 Residential mortgages 115.9 120.2 161.3 96.5 35.0 45.5 123.8 13.0 40.0 -37.0 -34.5 -32.0 18 Other mortgages and loans 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 LESS: Federal Home Loan Bank advances 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 institutions 730.0 528.4 562.3 511.1 394.6 561.9 444.8 266.4 366.7 550000..44 118855..88 9911..66 By lending institution ?1 Commercial banks 198.1 135.4 156.3 177.3 118.7 184.3 184.1 132.1 110011..77 5566..99 113344..22 1155..77 77 Savings institutions 107.6 136.8 120.4 -90.9 -153.4 -201.9 -56.6 -210.4 -168.6 -178.0 -154.8 -147.6 73 Insurance and pension funds 160.1 179.7 198.7 177.9 182.4 205.1 160.0 231.6 187.5 150.6 125.4 134.9 24 Other financial institutions 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 112200..22 2288..44 6600..11 3333..22 221166..77 --7744..00 76 Credit market borrowing 131.0 128.4 127.8 54.5 34.7 30.9 18.5 -13.5 40.8 93.1 -53.2 -55.2 71 Other sources 321.8 237.1 205.3 231.4 299.4 323.1 306.1 251.6 265.9 374.1 22.3 220.8 78 Foreign funds 12.9 43.7 9.3 -9.9 24.0 -20.6 39.9 7.8 103.5 -55.1 43.8 -124.7 79 Treasury balances 1.7 -5.8 7.3 -3.4 5.3 5.0 13.1 -13.4 18.2 3.4 30.1 -39.2 30 Insurance and pension reserves 119.9 135.4 177.6 140.5 159.9 193.9 137.9 211.9 144.2 145.6 60.1 118.8 31 Other, net 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 3? Direct lending in credit markets 121.5 214.6 241.7 195.9 208.6 58.7 329.0 242.8 117755..00 8877..77 110044..22 162.4 33 U.S. government securities 27.0 86.0 129.0 134.3 148.1 65.8 198.0 154.0 165.2 75.3 85.2 156.4 34 State and local obligations -19.9 61.8 53.5 28.4 -1.0 12.8 -1.5 10.0 15.6 -27.9 11..88 13.2 35 Corporate and foreign bonds 52.9 23.3 -9.4 .7 17.5 14.6 38.9 19.7 -74.7 86.1 99..11 57.4 36 Open market paper 9.9 15.8 36.4 5.4 18.2 -64.6 60.6 33.8 16.8 -38.4 -7.7 -67.8 37 Other loans and mortgages 51.7 27.6 32.2 27.1 25.7 30.1 33.0 25.2 52.1 -7.4 15.9 3.3 38 Deposits and currency 297.5 179.3 232.8 241.3 90.1 230.6 137.3 64.3 95.9 62.9 236.2 -41.8 39 Currency 14.4 19.0 14.7 11.7 22.6 10.1 26.1 23.0 32.2 9.1 46.1 5.7 40 Checkable deposits 96.4 -.9 12.9 1.5 .6 65.8 1.4 -18.9 13.4 6.4 31.9 -7.3 41 Small time and savings accounts 120.6 76.0 122.4 100.5 59.4 109.1 107.7 21.5 59.6 48.9 101.0 16.7 4? Money market fund shares 43.2 28.9 20.2 85.2 61.8 65.6 72.2 4.7 110.9 59.3 128.5 -29.8 43 Large time deposits -3.2 37.2 40.8 23.1 -46.8 -13.4 -26.4 -1.8 -97.9 -61.2 -2.3 -52.5 44 Security repurchase agreements 20.2 21.6 32.9 14.9 -14.5 -19.2 -34.7 22.8 -25.8 -20.1 -42.4 -1.1 45 Deposits in foreign countries 5.9 -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 currency 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 47 Public holdings as percent of total 33.1 36.0 27.5 27.2 39.5 32.0 27.5 46.9 47.4 3388..44 59.4 61.3 48 Private financial intermediation (percent) 101.3 86.0 83.2 78.3 69.4 95.3 58.9 51.0 73.2 101.1 54.1 29.6 49 Total foreign funds 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 50 86.8 10.9 -124.2 -63.7 9.6 14.9 -9.2 48.0 --2244..11 2233..66 110088..00 117733..99 51 Mutual fund shares 159.0 73.9 1.1 41.3 61.4 72.4 47.8 71.0 46.1 80.6 87.8 122.2 5? Other equities -72.2 -63.0 -125.3 -105.1 -51.7 -57.6 -57.0 -22.9 -70.2 -56.9 20.2 51.7 53 Acquisitions by financial institutions 50.9 32.0 -2.9 17.2 31.9 76.9 41.1 72.8 -48.2 61.9 44.0 73.4 54 Other net purchases 35.9 -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 secunties. 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, Digitized for FRA29S. EDRem and deposits and note balances at commercial banks. D.C. 20551. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • February 1992 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING Billions of dollars, end of period 1989 1990 1991 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998866 11998899 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Nonflnancial sectors 1 Total credit market debt owed by domestic nonflnancial sectors 7,646.3 8,343.9 9,0%.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 3 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 capital 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 6%.4 742.6 742.6 750.0 752.5 753.8 753.5 752.0 748.9 13 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 2,281.0 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 2,5%. 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 Nonflnancial 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 nonflnancial 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 4%.2 4%.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 1,518.6 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 1989 1990 1991 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998866 11998877 11998888 11998899 04 Q1 Q2 Q3 Q4 Q1 Q2 1 Total hinds 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 224422..77 224400..66 224488..99 225588..22 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 1,098.3 1,249.3 1,249.3 1,288.2 1,330.1 11,,336677..99 11,,441188..44 11,,445522..22 11,,448855..11 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 70 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 71 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 22,,778855..44 22,,779999..33 72 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 7^ 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 76 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 77 Other sources 2,099.5 2,352.1 2,534.5 2,765.5 2,765.5 2,932.9 3,000.8 3,061.8 3,133.7 3,151.7 3,222.2 78 Foreign funds 18.6 62.3 71.5 61.6 61.6 61.7 63.1 86.2 85.6 85.2 54.4 79 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 37 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 22,,558811..66 22,,662233..00 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 4,094.7 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 47, 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 33,,776655..33 33,,998822..77 44,,556622..44 44,,559966..22 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 57 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 amounts 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, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • February 1992 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures Monthly data seasonally adjusted, except as noted 1991 MMeeaassuurree 11998888 11998899 11999900 Mar. Apr. May June July Aug. Sept. Oct. Nov. 1 Industrial production1 (1987=100) 105.4 108.1 109.2 105.0 105.5 106.4 107.3 108.1 108.0 108.2 108.2 107.8 Market groupings (1987=100) 2 Products, total 105.3 108.6 110.1 106.5 106.9 107.7 108.6 108.7 108.5 108.8 108.9 108.4 3 Final, total 105.6 109.1 110.9 108.1 108.7 109.3 110.1 110.2 109.8 110.3 110.4 109.8 4 Consumer goods 104.0 106.7 107.3 104.7 105.5 106.6 108.0 108.3 108.4 109.2 109.3 108.8 5 Equipment 107.6 112.3 115.5 112.5 112.8 112.7 112.8 112.8 111.6 111.8 111.9 111.1 6 Intermediate 104.4 106.8 107.7 101.3 101.2 102.7 104.0 104.0 104.4 104.2 103.9 104.3 7 Materials 105.6 107.4 107.8 102.6 103.4 104.5 105.4 107.0 107.2 107.3 107.2 106.8 Industry groupings (1987=100) 8 Manufacturing 105.8 108.9 109.9 105.2 105.9 106.6 107.5 108.3 108.4 108.9 108.9 108.3 9 Capacity utilization, manufacturing (percent)2 83.9 83.9 82.3 77.2 77.5 77.8 78.3 78.7 78.6 78.8 78.6 78.0 10 Construction contracts (1982=100)' 166.7 172.9 155.7 128.0 145.0 138.0 133.0 144.0 150.0 143.0 157.0 134.0 11 Nonagricultural employment, total4 128.0 131.5 133.8 132.1 131.9 132.0 132.0 132.0 132.1 132.3 132.3 132.0 12 Goods-producing, total 103.4 104.0 102.7 98.1 97.7 98.0 97.7 97.8 97.9 97.8 97.5 96.9 13 Manufacturing, total 98.3 98.7 96.8 93.7 93.4 93.6 93.4 93.5 93.7 93.5 93.3 93.2 14 Manufacturing, production worker 93.5 93.8 91.5 87.9 87.7 87.9 87.8 88.0 88.3 88.1 88.0 87.8 15 Service-producing 138.3 142.9 146.8 146.3 146.1 146.3 146.4 146.3 146.5 146.7 146.8 146.6 16 Personal income, total 115.2 123.1 n.a. 126.0 126.9 127.5 127.1 127.7 128.2 128.5 128.3 n.a. 17 Wages and salary disbursements 114.4 121.1 n.a. 122.9 123.8 124.8 124.2 124.9 125.4 125.2 125.2 n.a. 18 Manufacturing 110.6 113.4 n.a. 112.0 112.7 113.4 113.8 114.4 114.6 115.5 114.3 n.a. 19 Disposable personal income5 115.2 123.4 n.a. 127.0 128.1 128.6 128.3 128.9 129.3 129.7 129.5 n.a. 20 Retail sales6 228.2 241.7 250.8 252.3 251.4 254.3 254.2 255.1 253.4 254.2 254.3 255.0 Prices1 21 Consumer (1982-84= 100) 118.3 124.0 130.7 135.0 135.2 135.6 136.0 136.2 136.6 137.2 137.4 137.8 22 Producer finished goods (1982=100) 108.0 113.6 119.2 120.9 121.1 121.8 121.9 121.6 121.7 121.3 122.3 122.3 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 Apr. May June July Aug. Sept. Oct.r Nov. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 186,837 188,601 190,216 191,525 191,664 191,805 191,955 192,095 192,240 192,386 192,522 2 Labor force (including Armed Forces)1 123,893 126,077 126,954 127,817 127,374 127,766 127,330 127,026 127,725 127,646 127,327 3 Civilian labor force 121,669 123,869 124,787 125,672 125,232 112255,,662299 112255,,221144 112244,,990044 112255,,660077 112255,,554499 125,257 Employment 4 Nonagricultural industries2 111,800 114,142 114,728 114,243 113,319 113,576 113,474 113,150 113,859 113,772 113,457 5 Agriculture 3,169 3,199 3,186 3,156 3,272 3,308 3,239 3,266 3,306 3,195 3,302 Unemployment 6 Number 6,701 6,528 6,874 8,274 8,640 8,745 8,501 8,488 8,442 8,582 8,499 7 Rate (percent of civilian labor force) 5.5 5.3 5.5 6.6 6.9 7.0 6.8 6.8 6.7 6.8 6.8 8 Not in labor force 62,944 62,524 63,262 63,708 64,290 64,039 64,625 65,069 64,515 64,740 65,195 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment1 105,536 108,413 110,330 108,736 108,887 108,885 108,859 108,971 109,066r 109,070 108,829 10 Manufacturing 19,350 19,426 19,064 18,3% 18,426 18,378 18,402 18,442 IS,414' 18,374 18,341 11 Mining 713 700 735 710 706 704 701 693 684 678 676 12 Contract construction 5,110 5,200 5,205 4,688 4,715 4,710 4,695 4,691 4,699r 4,671 4,576 13 Transportation and public utilities 5,527 5,648 5,838 5,814 5,819 5,809 5,809 5,820 5,829r 5,829 5,826 14 Trade 25,132 25,851 26,151 25,410 25,424 25,413 25,411 25,393 25,387r 25,337 25,215 15 Finance 6,649 6,724 6,833 6,718 6,712 6,703 6,688 6,687 6,692r 6,698 6,702 16 Service 25,669 27,0% 28,209 28,576 28,645 28,712 28,733 28,831 28,937r 29,023 29,042 17 Government 17,386 17,769 18,295 18,424 18,440 18,456 18,420 18,414 18,424r 18,460 18,451 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 Nonflnancial Statistics • February 1992 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1990 1991 1990 1991 1990 1991 SSeerriieess 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 3 Primary processing 104.7 100.6 100.8 104.0 126.1 126.8 127.5 128.1 83.0 79.4 79.1 81.2 4 Advanced processing 111.0 108.6 109.4 110.6 139.1 140.2 141.3 142.4 79.8 77.5 77.4 77.7 5 Durable goods 110.0 106.1 106.7 108.1 139.0 139.9 140.9 141.8 79.1 75.8 75.7 76.2 6 Lumber and products 95.7 92.3 94.0 95.0 124.6 125.0 125.2 125.4 76.8 73.9 75.1 75.7 7 Primary metals 107.3 97.9 95.9 102.0 127.9 128.2 128.6 129.0 83.9 76.4 74.6 79.1 8 Iron and steel 110.0 96.3 92.8 100.3 132.7 133.0 133.5 134.0 82.9 72.4 69.5 74.8 9 Nonferrous 103.4 100.2 100.3 104.5 121.1 121.3 121.5 121.7 85.3 82.6 82.6 85.8 10 Nonelectrical machinery 126.4 124.4 123.5 123.5 156.3 157.9 159.5 161.2 80.8 78.8 77.4 76.6 11 Electrical machinery 109.9 108.1 110.6 111.2 141.4 142.7 144.0 145.3 77.8 75.8 76.8 76.5 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 . 113.3 109.9 106.4 105.3 136.1 137.0 137.9 138.7 83.3 80.2 77.2 75.9 14 Nondurable goods 107.8 106.1 106.7 109.1 129.9 130.9 131.9 132.9 83.0 81.0 80.9 82.1 15 Textile mill products 98.2 94.6 99.4 104.0 117.0 117.3 117.7 118.0 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 91.2 17 Chemicals and products 110.2 109.1 109.3 112.1 137.1 138.4 139.7 141.0 80.4 78.8 78.2 79.5 18 Plastics materials 118.1 113.2 115.6 125.4 132.9 135.7 139.2 142.6R 88.9 83.4 83.0 87.9 19 Petroleum products 107.4 107.3 107.6 108.1 121.4 121.4 121.4 121.4 88.5 88.4 88.6 89.0 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 108.3 106.2 109.6 110.2 127.6 128.1 128.4 128.8 84.8 82.9 85.3 85.5 22 Electric 111.2 109.3 114.4 115.1 123.2 123.8 124.3 124.7 90.2 88.3 92.1 92.3 Previous cycle2 Latest cycle 1990 1991 High Low High Low Nov. Apr. May June July Aug.r Sept.r Oct.r Nov.P Capacity utilization rate (percent) 1 Total industry 89.2 72.6 87.3 71.8 81.6 78.6 79.1 79.6 80.0 79.8 79.8 79.6 79.1 2 Manufacturing 88.9 70.8 87.3 70.0 80.7 77.5 77.8 78.3 78.7 78.6 78.8 78.6 78.0 3 Primary processing 92.2 68.9 89.7 66.8 83.2 78.2 79.0 79.9 81.1 81.2 81.2 81.1 80.7 4 Advanced processing 87.5 72.0 86.3 71.4 79.6 77.3 77.3 77.6 77.8 77.5 77.7 77.5 76.9 5 Durable goods 88.8 68.5 86.9 65.0 79.1 75.4 75.7 76.0 76.4 76.0 76.2 75.9 75.1 6 Lumber and products 90.1 62.2 87.6 60.9 76.6 74.1 73.9 77.2 75.6 76.0 75.6 74.6 76.1 7 Primary metals 100.6 66.2 102.4 46.8 85.3 73.6 75.3 74.9 78.5 79.6 79.2 79.2 79.0 8 Iron and steel 105.8 66.6 110.4 38.3 84.8 68.7 70.4 69.5 74.3 75.0 75.1 76.2 76.4 9 Nonferrous 92.9 61.3 90.5 62.2 85.9 81.1 83.1 83.5 85.1 86.7 85.6 83.9 83.1 10 Nonelectrical machinery 96.4 74.5 92.1 64.9 80.8 77.7 77.4 77.1 77.2 76.5 76.2 76.4 75.2 11 Electrical machinery 87.8 63.8 89.4 71.1 78.1 76.4 76.8 77.2 76.6 76.8 76.2 75.1 75.2 12. Motor vehicles and parts 93.4 51.1 93.0 44.5 64.5 64.3 66.9 68.9 71.8 67.9 73.6 74.2 70.6 13 Aerospace and miscellaneous transportation equipment. 77.0 66.6 81.1 66.9 83.1 78.0 76.7 76.8 76.1 76.1 75.3 74.9 73.9 14 Nondurable goods 87.9 71.8 87.0 76.9 82.9 80.5 80.7 81.4 82.0 82.1 82.2 82.1 81.9 15 Textile mill products 92.0 60.4 91.7 73.8 83.3 82.7 84.3 86.4 88.4 88.8 87.3 87.3 87.2 16 Paper and products 96.9 69.0 94.2 82.0 90.9 86.7 86.5 89.7 91.9 90.4 91.4 90.8 90.7 17 Chemicals and products 87.9 69.9 85.1 70.1 80.2 78.3 78.2 78.2 79.3 79.7 79.6 79.7 79.7 18 102.0 50.6 90.9 63.4 90.2 80.5 84.5 84.1 89.6 87.1 87.0 19 Petroleum products 96.7 81.1 89.5 68.2 88.9 87.1 88.6 90.2 89.2 88.4 89.4 88.5 87.1 20 Mining 94.4 88.4 96.6 80.6 90.6 88.3 87.6 89.2 89.6 88.5 88.0 87.5 87.5 71 Utilities 95.6 82.5 88.3 76.2 83.8 82.6 86.7 86.7 86.2 85.9 84.5 84.5 85.1 22 Electric 99.0 82.7 88.3 78.7 88.9 88.5 93.7 94.1 93.6 92.7 90.7 90.7 91.6 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 Group p p r o o r - - aa 1 vv 99 gg 0 .. tion Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug/ Sept.r Oct.r NNoovv..PP Index (1987 = 100) MAJOR MARKETS 1 Total index 100.0 109.2 108.3 107.2 106.6 105.7 105.0 105.5 106.4 107.3 108.1 108.0 108.2 108.2 107.8 2 Products 60.8 110.1 109.3 108.4 107.8 106.9 106.5 106.9 107.7 108.6 108.7 108.5 108.8 108.9 108.4 3 4 5 6 Fin C a o l D n p u s A r u r o a m u d b t e u o l r e c m t g c s o o o t n o iv s d e u s m , p t r e o o r t d a g u l o c o ts d s 4 2 2 6 5 6 . . . . 5 0 6 0 1 1 1 1 1 0 0 0 0 7 2 6 . . . . 9 3 3 2 1 1 9 9 1 0 3 9 0 6 . . . . 5 4 5 2 1 1 8 9 0 0 6 6 9 5 . . . . 7 0 7 2 1 1 9 9 0 0 0 7 9 5 . . . . 6 1 6 6 1 1 9 8 0 0 8 5 8 4 . . . . 1 2 3 7 1 1 9 8 0 0 8 5 8 4 . . . . 9 1 9 7 1 1 9 9 0 0 4 9 5 8 . . . . 2 3 5 7 1 1 1 9 0 0 0 7 1 9 6 . . . . 4 1 3 6 1 1 1 1 1 0 0 0 0 0 8 4 . . . . 1 4 0 2 1 1 1 1 1 0 0 0 0 8 2 5 . . . . 2 3 3 5 1 1 1 9 0 0 0 8 9 8 4 . . . . 6 8 4 0 1 1 1 1 1 0 0 0 0 7 6 9 . . . . 3 7 6 2 1 1 1 1 0 0 1 0 7 7 0 9 . . . . 3 8 4 3 1 1 1 1 0 0 0 0 9 3 8 6 . . . . 8 8 8 2 7 Autos and trucks 1.5 97.4 84.2 74.6 79.6 74.7 76.7 85.0 89.2 92.5 98.1 90.2 103.0 105.1 99.0 8 Autos, consumer .9 92.2 80.7 77.2 83.2 78.6 76.3 78.3 81.9 83.8 92.8 83.0 94.5 92.6 89.8 9 Trucks, consumer .6 106.1 90.2 70.2 73.6 68.1 77.4 96.3 101.6 107.1 106.9 102.2 117.1 126.1 114.5 10 Auto parts and allied goods.. 1.0 109.6 107.3 104.8 107.1 108.3 107.3 108.0 109.5 112.2 108.6 111.3 112.1 110.5 111.0 11 Other 33..11 109.4 104.1 103.4 103.2 100.7 101.4 103.4 104.1 107.3 108.1 108.3 108.6 108.3 108.2 12 Appliances, A/C, and TV.... ..88 102.0 90.8 89.9 92.8 94.5 96.2 97.3 96.8 104.8 100.6 99.6 104.1 102.1 101.6 13 Carpeting and furniture .9 104.9 99.2 100.9 100.3 92.0 93.9 97.0 96.9 99.2 103.1 103.9 101.8 102.1 101.8 14 Miscellaneous home goods .. 1.4 116.4 114.6 112.5 110.8 109.8 109.2 110.8 112.8 113.8 115.5 115.9 115.5 115.7 115.9 15 Nondurable consumer goods 20.4 107.6 108.5 108.4 107.8 107.3 107.1 107.2 108.1 109.0 109.0 109.6 109.6 109.7 109.4 16 Foods and tobacco 9.1 105.9 107.8 107.5 106.3 105.9 105.4 105.3 106.2 106.9 106.9 107.1 107.6 107.7 107.1 17 Clothing 2.6 95.7 91.7 92.1 90.6 90.8 90.4 90.6 92.0 93.9 94.3 94.8 95.2 95.7 95.3 18 Chemical products 3.5 113.3 113.5 113.5 114.7 114.8 114.2 115.0 113.9 114.3 115.4 117.4 117.3 117.2 117.7 19 Paper products 2.5 119.7 122.8 122.7 122.1 121.0 122.2 122.7 121.8 123.3 122.1 122.6 124.8 125.0 124.5 20 Energy 2.7 105.9 106.4 106.6 106.5 105.2 105.5 104.4 109.0 110.0 109.4 109.5 105.4 105.4 105.8 21 Fuels .7 102.9 101.1 98.1 99.8 103.4 104.3 101.4 103.6 104.9 105.2 104.0 104.4 105.1 102.9 22 Residential utilities 2.0 107.0 108.4 109.7 109.0 105.9 105.9 105.5 111.0 111.9 110.9 111.5 105.8 105.5 106.9 23 Equipment 20.0 115.5 115.1 113.6 113.6 112.9 112.5 112.8 112.7 112.8 112.8 111.6 111.8 111.9 111.1 24 Business equipment 13.9 123.1 122.9 121.2 121.6 120.6 120.3 121.3 121.7 121.9 122.5 121.3 122.3 122.5 121.7 25 Information processing and related . 5.6 127.2 128.8 127.5 130.1 131.6 131.2 131.5 131.8 130.9 131.1 130.3 130.4 131.7 132.6 26 Office and computing 1.9 149.8 149.8 148.9 155.0 157.3 155.1 155.6 155.6 154.0 156.0 153.1 152.2 156.5 157.3 27 Industrial 4.0 115.3 115.3 112.3 111.5 109.1 109.5 109.3 109.3 109.1 109.0 108.6 108.2 106.9 104.5 28 Transit 2.5 129.9 126.3 123.4 124.0 120.3 120.4 124.1 125.9 128.0 131.2 126.7 132.6 133.0 130.1 29 Autos and trucks 1.2 96.8 83.9 75.3 79.8 75.0 76.7 84.4 87.9 90.8 96.6 86.2 99.2 101.1 96.5 30 Other 1.9 118.5 117.6 118.5 115.0 112.5 110.8 112.7 113.0 114.8 114.0 114.8 114.8 115.0 115.2 31 Defense and space equipment 5.4 97.3 96.2 95.8 94.4 94.5 93.9 92.5 91.5 91.0 90.0 89.8 89.0 88.7 87.9 32 Oil and gas well drilling .6 109.0 109.7 107.3 106.4 108.2 107.7 105.1 101.3 103.0 97.8 86.7 80.1 79.0 78.1 3 3 Manufactured home s .2 90.8 87.3 83.4 83.1 77.3 79.3 83.1 86.6 90.8 86.5 90.3 86.2 86.3 87.6 34 Intermediate products, total 14.7 107.7 106.2 106.0 103.8 102.6 101.3 101.2 102.7 104.0 104.0 104.4 104.2 103.9 104.3 35 Construction supplies 6.0 105.2 101.8 101.0 97.7 96.4 94.0 94.9 95.8 97.4 96.9 96.7 96.4 95.4 95.5 36 Business supplies 8.7 109.4 109.2 109.4 108.1 106.8 106.4 105.6 107.5 108.5 109.0 109.7 109.6 109.9 110.4 37 Materials 39.2 107.8 106.8 105.3 104.8 103.9 102.6 103.4 104.5 105.4 107.0 107.2 107.3 107.2 106.8 38 Durable goods materials 19.4 111.8 110.4 107.5 106.8 105.5 103.3 104.9 106.2 106.7 108.2 109.1 109.2 108.8 107.8 39 Durable consumer parts 4.2 104.0 98.5 91.1 94.2 90.4 87.5 92.1 95.5 97.3 100.2 100.1 101.3 101.5 98.5 40 Equipment parts 7.3 118.1 117.4 116.9 115.9 116.2 114.8 114.6 114.8 113.6 113.5 114.3 113.9 113.4 113.0 41 Other 7.9 110.2 110.2 107.4 105.2 103.8 101.0 102.6 103.8 105.3 107.5 109.0 109.0 108.4 107.8 42 Basic metal materials 2.8 111.9 112.7 109.6 104.6 104.8 101.2 101.6 103.0 105.9 108.8 110.2 109.4 108.5 108.2 43 Nondurable goods materials 9.0 106.0 105.6 104.9 104.9 103.6 102.8 103.1 103.7 104.9 108.1 107.8 108.3 108.8 108.9 44 Textile materials 1.2 96.7 95.1 91.4 89.1 91.5 92.7 94.7 96.8 98.1 101.4 101.5 99.6 100.2 100.0 45 Pulp and paper materials 1.9 106.4 107.2 108.5 106.0 104.1 102.4 102.0 101.5 106.9 110.3 108.2 110.4 110.0 110.0 46 Chemical materials 3.8 106.8 105.8 105.7 106.7 104.1 102.7 102.9 103.9 103.9 107.7 107.9 108.3 109.2 109.5 47 Other 2.1 109.5 109.4 107.6 109.3 108.8 108.8 109.0 109.2 108.6 110.5 110.9 111.4 111.5 111.9 48 Energy materials 10.9 102.1 101.6 102.0 101.1 101.1 101.3 101.1 102.4 103.4 104.1 103.3 103.1 103.1 103.3 49 Primary energy 7.2 101.3 101.4 101.9 101.3 102.1 101.5 100.5 101.2 104.7 106.2 104.5 103.1 103.3 103.6 50 Converted fuel materials 3.7 103.5 102.0 102.1 100.9 99.2 100.8 102.4 104.7 101.0 100.1 101.0 103.1 102.6 102.8 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.3 109.5 109.0 108.1 107.4 106.6 105.7 106.1 106.9 107.8 108.4 108.5 108.4 108.3 108.1 52 Total excluding motor vehicles and parts.. 95.3 109.8 109.4 108.6 107.8 107.0 106.2 106.5 107.3 108.1 108.6 108.8 108.7 108.6 108.4 53 Total excluding office and computing machines 97.5 108.2 107.3 106.1 105.4 104.4 103.7 104.2 105.2 106.2 106.9 106.8 107.1 107.0 106.6 54 Consumer goods excluding autos and trucks 24.5 107.9 107.9 107.6 107.2 106.5 106.4 106.7 107.6 108.9 108.9 109.5 109.6 109.5 109.3 55 Consumer goods excluding energy 23.3 107.5 106.5 105.6 105.5 104.7 104.6 105.6 106.3 107.7 108.1 108.3 109.6 109.7 109.1 56 Business equipment excluding autos and trucks 12.7 125.6 126.8 125.6 125.7 125.0 124.5 124.9 125.0 125.0 125.0 124.7 124.5 124.6 124.2 57 Business equipment excluding office and computing equipment 12.0 118.7 118.6 116.7 116.2 114.6 114.6 115.7 116.3 116.7 117.0 116.2 117.4 117.0 115.9 58 Materials excluding energy 28.4 110.0 108.9 106.6 106.2 104.9 103.1 104.3 105.4 106.1 108.2 108.7 108.9 108.8 108.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • February 1992 2.13—Continued 1987 1990 1991 Group SSIICC22 pro- 1990 code por- avg. tion Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug.r Sept.1 Oct/ Nov.p Index (1987 = 100) MAJOR INDUSTRIES 1 Total index. 100.0 109.2 108.3 107.2 106.6 105.7 105.0 105.5 106.4 107.3 108.1 108.0 108.2 108.2 107.8 2 Manufacturing 84.4 109.9 108.9 107.5 107.0 106.1 105.2 105.9 106.6 107.5 108.3 108.4 108.9 108.9 108.3 3 Primary processing .. 26.7 106.3 104.9 102.9 102.0 100.8 99.0 99.6 100.7 102.1 103.7 104.1 104.3 104.3 103.9 4 Advanced processing 57.7 111.6 110.8 109.5 109.3 108.5 108.0 108.9 109.3 109.9 110.5 110.3 111.0 111.0 110.3 Durable goods 47.3 111.6 109.9 107.5 107.2 106.1 105.0 106.0 106.7 107.3 108.1 107.8 108.4 108.2 107.3 Lumber and products ... 24 2.0 101.6 95.5 93.5 94.2 91.5 91.2 92.7 92.5 96.7 94.8 95.3 94.9 93.7 95.7 Furniture and fixtures ... 25 1.4 105.9 102.3 102.0 99.0 94.9 95.4 98.3 98.5 99.4 100.5 101.3 101.2 101.2 100.4 Clay, glass, and stone products 32 2.5 105.7 103.8 100.7 97.2 98.9 94.4 94.2 95.1 95.0 95.8 95.5 94.3 94.4 92.7 Primary metals 33 3.3 108.4 109.1 104.2 99.7 99.5 94.7 94.5 96.9 96.4 101.2 102.6 102.2 102.3 102.2 Iron and steel 331,2 1.9 109.9 112.6 107.3 99.0 98.0 92.0 91.6 94.0 92.9 99.5 100.6 100.8 102.4 102.8 Raw steel .1 109.6 109.5 100.6 104.7 97.9 89.8 91.0 88.9 94.0 102.6 102.4 100.9 101.3 102.8 Nonferrous 333-6,9 1.4 106.2 104.1 99.8 100.6 101.6 98.4 98.5 101.0 101.5 103.5 105.5 104.3 102.3 101.3 Fabricated metal products 34 5.4 105.9 104.3 101.9 101.7 99.1 97.8 98.0 99.1 99.8 100.9 101.4 101.8 101.7 100.9 Nonelectrical machinery. 35 8.6 126.5 126.3 124.7 125.5 124.5 123.1 123.5 123.6 123.4 123.9 123.3 123.2 124.0 122.4 Office and computing machines 357 2.5 149.8 149.8 148.9 155.0 157.3 155.1 155.6 155.6 154.0 156.0 153.0 152.2 156.5 157.3 Electrical machinery 36 8.6 111.4 110.4 108.7 107.6 108.2 108.6 109.7 110.6 111.5 111.0 111.5 111.0 109.7 110.2 Transportation equipment 37 9.8 105.5 100.1 96.6 97.6 95.5 95.0 97.2 98.2 99.7 101.3 99.0 102.2 102.4 99.6 Motor vehicles and parts 371 4.7 96.8 85.8 78.5 83.0 79.4 79.8 86.2 89.8 92.5 96.7 91.6 99.4 100.4 95.7 Autos and light trucks 2.3 96.6 83.7 74.9 80.1 75.3 76.6 84.0 88.2 91.2 97.3 89.1 101.7 103.2 97.7 20 Aerospace and miscellaneous transportation equipment.. 372-6,9 5.1 113.3 113.1 112.9 110.8 110.0 108.8 107.2 105.8 106.1 105.4 105.6 104.7 104.3 103.2 Instruments 38 3.3 116.8 118.1 117.3 119.0 119.3 118.4 118.6 118.2 117.3 116.5 116.9 118.2 118.0 118.3 Miscellaneous 39 1.2 120.0 122.5 119.1 116.1 114.6 115.3 117.5 118.7 119.8 121.6 123.2 121.9 120.9 120.7 23 Nondurable goods 37.2 107.8 107.7 107.4 106.8 106.0 105.4 105.9 106.5 107.6 108.6 109.0 109.5 109.7 109.6 24 Foods 20 8.8 107.6 109.6 109.1 108.3 107.6 107.4 107.6 107.8 108.6 108.3 108.7 109.3 109.3 109.2 25 Tobacco products 21 1.0 98.6 99.0 101.1 100.0 100.1 98.2 97.6 98.7 99.4 102.6 103.1 102.7 102.2 99.6 26 Textile mill products 22 1.8 100.8 97.4 96.1 94.0 94.3 95.4 97.2 99.2 101.7 104.2 104.7 103.2 103.2 103.2 27 Apparel products 23 2.4 98.8 95.5 94.9 92.9 93.1 92.5 93.2 95.2 96.2 97.8 98.3 98.3 98.9 98.6 28 Paper and products 26 3.6 105.3 105.1 105.4 104.2 102.2 101.3 101.3 101.3 105.3 108.1 106.5 108.0 107.5 107.6 29 Printing and publishing .. 27 6.4 111.9 112.4 112.8 112.1 110.9 110.4 110.7 110.6 111.2 111.9 112.3 113.1 113.9 114.2 30 Chemicals and products . 28 8.6 110.3 110.0 109.9 110.1 109.1 108.2 109.0 109.2 109.6 111.5 112.3 112.6 113.1 113.5 31 Petroleum products 29 1.3 108.2 107.8 105.6 104.7 108.8 108.5 105.7 107.5 109.6 108.3 107.3 108.6 107.4 105.7 32 Rubber and plastic products 30 3.0 110.2 109.6 106.9 108.8 106.1 104.4 106.6 109.2 110.5 110.1 112.6 113.2 113.2 112.6 33 Leather and products ... 31 .3 100.0 89.9 92.6 89.6 90.8 91.5 90.0 89.5 90.9 91.0 87.1 86.2 83.8 84.8 34 Mining 7.9 102.6 103.3 103.4 101.7 102.9 101.5 100.9 100.2 102.1 102.7 101.3 100.8 100.3 100.3 35 Metal 10 .3 153.1 153.4 162.0 143.1 148.0 147.6 145.7 148.0 157.0 153.0 155.5 153.1 153.6 152.0 36 Coal 11,12 1.2 113.2 112.9 110.6 108.4 112.8 109.9 105.9 103.4 110.2 116.0 110.8 110.1 107.9 108.7 37 Oil and gas extraction 13 5.7 95.5 97.3 96.7 96.0 97.2 96.4 96.6 96.0 96.9 96.4 95.7 95.2 95.1 95.1 38 Stone and earth minerals . 14 .7 119.5 113.5 118.9 119.2 112.0 108.0 107.0 107.5 106.4 107.8 107.0 107.3 105.2 105.1 39 Utilities... 7.6 108.0 106.9 108.8 107.6 104.6 106.4 105.9 111.4 111.5 110.9 110.7 108.9 109.0 109.9 40 Electric. 491.3PT 6.0 110.8 109.6 111.8 110.4 107.8 109.8 109.8 116.4 117.1 116.6 115.6 113.3 113.4 114.6 41 Gas .... 492,3PT 1.6 97.3 97.0 97.6 97.5 92.8 93.6 91.6 92.8 90.7 89.7 92.4 93.0 92.7 92.6 SPECIAL AGGREGATES 42 Manufacturing excluding motor vehicles and parts 79.8 110.7 110.3 109.1 108.4 107.6 106.7 107.1 107.6 108.3 109.0 109.3 109.4 109.3 109.0 43 Manufacturing excluding office and computing machines 82.0 108.7 107.7 106.2 105.6 104.5 103.7 104.4 105.1 106.1 106.9 107.0 107.6 107.4 106.8 Gross value (billions of 1982 dollars, annual rates) MAJOR MARKETS 44 Products, total 1734.8 1,911.4 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 1,885.5 1,899.8 1,907.7 1,891.1 45 Final 1350.9 1,497.7 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 1,484.5 1,500.1 1,508.7 1,490.9 46 Consumer goods 833.4 882.9 865.2 857.6 857.9 852.7 857.4 862.9 874.4 884.2 888.3 882.7 896.6 900.4 890.4 47 Equipment 517.5 614.8 605.6 593.2 601.7 600.1 598.2 601.7 603.7 606.2 607.8 601.8 603.5 608.3 600.5 48 Intermediate 384.0 413.7 412.0 408.7 400.8 395.6 389.8 388.7 397.6 400.1 399.2 401.0 399.6 399.0 400.2 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 1991 IItteemm 11998888 11998899 11999900 Jan. Feb. Mar. Apr. May June July Aug/ Sept/ Oct. Private residential real estate activity (thousands of units, except as noted) NEW UNITS 1 Permits authorized 1,456 1,339 1,111 802 876 892 913 966 999 1,005 953 982 1,028 2 One-family 994 932 794 611 695 689 742 760 780 794 769 782 7% 3 Two-or-more-family 462 407 317 191 181 203 171 206 219 211 184 200 232 4 Started 1,488 1,376 1,193 847 992 907 977 983 1,034 1,049 1,056 1,017 1,089 5 One-family 1,081 1,003 895 648 788 742 801 831 869 879 883 861 891 6 Two-or-more-family 407 373 298 199 204 165 176 152 165 170 173 156 198 7 Under construction at end of period .. 919 850 711 717 709 680 674 665 655 652 649 632 635 8 One-family 570 535 449 461 457 442 443 443 446 451 455 453 455 9 Two-or-more-family 350 315 262 256 252 238 231 222 209 201 194 179 180 10 Completed 1,530 1,423 1,308 1,125 1,0% 1,190 1,089 1,070 1,105 1,069 1,054 1,192 1,036 11 One-family 1,085 1,026 966 841 838 881 821 800 815 806 821 864 857 12 Two-or-more-family 445 3% 342 284 258 309 268 270 290 263 233 328 179 13 Mobile homes shipped 218 198 188 168 157 157 175 174 173 175 178 172 172 Merchant builder activity in one-family units 14 Number sold 675 650 535 414 488 495 506 507 518 550077RR 552288 550022 551133 15 Number for sale at end of period ... 368 363 318 315 313 308 303 299 295 2% 292 291 288 Price of units sold (thousands of dollars)2 16 Median 113.3 120.4 122.3 117.9 119.9 122.5 121.0 116.0 119.0 120.0 120.0 123.6 122.9 17 Average 139.0 148.3 149.0 148.6 147.8 156.4 150.8 145.4 145.9 148.2R 141.5 150.7 149.4 EXISTING UNITS (one-family) 18 Number sold 3,594 3,439 3,316 2,900 3,160 3,220 3,310 3,540 3,590 3,320 3,250 3,120 3,150 Price of units sold (thousands of dollars) 19 Median 89.2 92.9 95.2 95.6 94.0 98.2 100.3 101.1 102.0 103.6 110022..22 9999..77 9999..22 20 Average 112.5 118.0 118.3 123.0 119.7 125.2 128.9 130.6 130.5 132.2 131.0 127.7 126.5 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 432,222 443,720 446,433 406,502 410,072 401,883 407,050 399,030 398,189 399,577R 402,423 407,468 411,451 22 Private 337,440 345,416 337,776 303,932 300,495 293,262 299,044 291,048 290,871 288,597r 292,448 2%,298 296,095 2 2 3 4 R N e o s n i r d e e s n i t d i e a n l tial, total 1 1 9 3 8 9 , , 1 3 0 3 1 9 1 1 9 4 6 8 , , 5 8 5 6 1 5 1 1 8 5 2 4 , , 8 9 5 2 6 0 1 1 6 4 1 2 , , 7 1 9 3 3 9 1 1 5 4 5 4 , , 6 8 2 7 2 3 1 1 5 4 2 0 , , 4 8 4 1 7 5 1 1 5 4 1 7 , , 8 2 3 0 6 8 1 1 5 3 4 6 , , 5 4 6 8 7 1 1 1 5 3 8 2 , , 2 5 8 8 2 9 1 1 5 3 7 0 , , 7 8 7 2 6 1 r 1 1 6 2 2 9 , , 7 7 3 1 8 0 1 1 6 2 6 9 , , 7 5 5 4 1 7 1 1 6 2 8 7 , , 1 8 9 9 6 9 25 Industrial buildings 16,451 20,412 23,849 22,433 23,249 23,089 24,301 20,683 20,868 20,948 20,418 20,302 21,322 26 Commercial buildings 64,025 65,4% 62,866 53,848 54,023 51,766 54,824 50,220 47,5% 46,964 46,298 45,631 43,586 27 Other buildings 19,038 19,683 21,591 20,621 20,850 20,628 21,928 20,858 20,429 20,684 19,968 20,586 20,081 28 Public utilities and other 39,825 43,274 46,614 45,237 46,751 45,332 46,155 44,720 43,6% 42,225r 43,026 43,028 42,910 29 Public 94,783 98,303 108,655 102,570 109,577 108,621 108,007 107,982 107,318 110,981 109,976 111,170 115,356 30 Military 3,579 3,520 2,734 1,868 1,723 1,866 1,828 1,918 1,864 1,776 1,783 2,261 1,868 31 Highway 29,227 28,171 30,595 25,560 30,699 29,9% 28,591 29,246 28,776 28,744 30,068 28,773 29,350 32 Conservation and development. 4,739 4,989 4,718 6,434 5,529 4,586 5,833 5,123 5,807 8,170 5,144 4,351 5,763 33 Other 57,238 61,623 70,608 68,708 71,626 72,173 71,755 71,695 70,871 72,291 72,981 75,785 78,375 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 • February 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 NNNooovvv... 11999900 11999911 111999999111 NNoovv.. NNoovv.. Dec. Mar. June Sept. July Aug. Sept. Oct. Nov. CONSUMER PRICES2 (1982-84=100) 1 AU items 6.3 3.0 4.9 2.4 3.0 3.3 .2 .2 .4 .1 .4 137.8 2 Food 5.6 1.6 3.9 2.4 5.1 -3.2 -.6 -.3 .1 -.1 .6 136.2 3 Energy items 4 All items less food and energy 19.0 -8.2 18.0 -30.7 -1.2 1.6 -.4 -.2 1.0 .2 .8 101.8 5 Commodities 5.3 4.5 3.8 6.8 3.2 4.6 .4 .4 .4 .1 .3 144.4 6 Services 3.1 4.4 2.3 7.9 3.2 4.1 .4 .5 .2 -.1 .4 130.9 6.2 4.5 4.8 6.4 3.0 4.6 .3 .3 .5 .3 .3 152.1 PRODUCER PRICES (1982=100) 7 Finished goods 7.0 -.5 5.1 -3.5 .7 .3 -.2 .2 .1 .7 .2 122.3 8 Consumer foods 4.1 -1.5 1.3 1.0 -.6 -6.3 -.7 -.4 -.5 .4 -.1 123.1 9 Consumer energy 38.5 -12.6 21.1 -35.5 .0 5.3 -1.3 1.8 .8 1.7 .0 78.2 10 Other consumer goods 3.9 3.4 3.4 5.9 1.2 2.4 ,4r ,2r .0 .6 .4 135.3 11 Capital equipment 3.2 2.6 3.3 4.6 1.6 1.0 .R .2 .4 .2 127.9 Intermediate materials 12 Excluding foods and feeds 5.6 -3.3 4.2 -9.8 -.7 .4 -.3 .4 .1 -.1 .1 114.3 13 Excluding energy 1.8 -.9 2.3 -2.3 -1.0 -.3 -.1 .0 .0 -.1 .1 121.1 Crude materials 14 Foods -1.3 -6.4 -7.3 .0 -12.5 -8.1 -1.5r -2.0" 1.5 .1 -.2 101.6 15 Energy 35.4 -22.1 -18.8 -54.0 .5 .0 1.6r I.R -2.7 3.9 1.2 81.1 16 Other .2 -8.8 -18.1 -4.7 -13.3 -4.0 -.3r ,2r -.9 -.5 -1.8 122.8 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 DOMESTIC PRODUCT AND INCOME Billions of current dollars, except as noted; quarterly data at seasonally adjusted annual rates 1990 1991 Account 11998888 11998899 11999900 Q3 Q4 Q1 Q2 Q3 GROSS DOMESTIC PRODUCT 1 Total 4,900.4 5,244.0 5,513.8 5,570.5 5,557.5 5,589.0 5,652.6 5,709.2 By source 2 4 3 5 Pe D N r S s e u o o r n r n v a d a i b u l c l e r e c s a o g b n o l s e o u d g m s o p o t d i s o n expenditures 3 1 1 . , . 2 4 0 7 9 3 7 8 6 7 3 5 . . . . 1 1 8 2 3 1 1 , , , 5 4 1 9 5 1 4 1 9 7 6 1 . . . . 8 9 9 2 3 2 1 . , . 7 0 4 2 4 5 6 1 2 5 7 9 . . . . 6 9 7 0 3 2 1 , , , 4 7 0 2 6 8 8 2 7 5 9 8 . . . . 1 2 6 4 3 2 1 , , , 8 1 4 2 1 5 1 4 1 2 3 6 . . . . 9 0 4 6 3 2 1 , , , 8 1 4 2 2 4 4 4 7 0 0 6 . . . . 7 7 7 3 2 3 1 . . , 8 1 4 2 6 7 4 5 8 0 5 2 . . . . 5 0 6 9 3 2 1 , , , 4 9 2 2 1 0 5 5 6 6 2 7 . . . . 4 1 9 4 6 Gross private domestic investment 793.6 837.6 802.6 821.8 750.9 709.3 708.8 740.9 7 Fixed investment 777.4 801.6 802.7 807.7 787.4 748.4 745.8 744.5 8 Nonresidential 545.4 570.7 587.0 596.3 585.2 560.0 554.6 546.8 9 Structures 182.0 193.1 198.7 201.7 191.2 184.0 180.0 169.0 10 Producers' durable equipment 363.4 377.6 388.3 394.7 394.0 375.9 374.7 377.8 11 Residential structures 232.0 230.9 215.7 211.4 202.2 188.4 191.2 197.7 12 Change in business inventories 16.2 36.0 .0 14.1 -36.5 -39.2 -37.1 -3.6 13 Nonfarm 27.5 35.5 -2.0 9.6 -28.9 -35.0 -34.0 -3.2 14 Net exports of goods and services -108.0 -82.9 -74.4 -82.5 -76.6 -36.8 -17.2 -37.3 15 Exports 444.2 504.9 550.4 548.7 572.6 565.9 589.8 597.0 16 Imports 552.2 587.8 624.8 631.2 649.2 602.7 607.0 634.3 17 Government purchases of goods and services .. 918.7 971.4 1,042.9 1,046.0 1,071.2 1,088.8 1,092.5 1,089.1 18 Federal 387.0 401.4 424.9 424.7 434.5 451.5 452.1 444.9 19 State and local 531.7 570.0 618.0 621.4 636.7 637.3 640.4 644.2 By major type of product 20 Final sales, total 4,884.2 5.208.1 5,513.8 5.556.5 5,594.0 5,628.2 5.689.6 5,712.8 21 Goods 1.925.8 2,062.1 2,167.6 2.181.6 2,194.5 2,208.6 2,223.2 2,214.1 22 Durable 835.6 892.9 934.7 939.3 927.2 916.4 939.5 929.4 23 Nondurable 1,090.1 1.169.2 1,233.0 1,242.3 1,267.3 1,292.1 1.283.7 1,284.7 24 Services 2.460.9 2,634.7 2,834.0 2,864.8 2,905.5 2,951.7 2,999.0 3,035.1 25 Structures 497.5 511.3 512.2 510.1 494.0 467.9 467.4 463.5 26 Change in business inventories 16.2 36.0 .0 14.1 -36.5 -39.2 -37.1 -3.6 27 Durable goods 24.3 26.9 -7.0 14.5 -29.4 -43.5 -33.5 -9.2 28 Nondurable goods -8.1 9.1 7.0 -.4 -7.1 4.3 -3.6 5.6 MEMO 4,718.6 4,836.9 4,884.9 4,903.3 4,855.1 4,824.0 4,840.7 4,862.7 29 Total GDP in 1987 dollars NATIONAL INCOME 4,002.6 4,244.7 4,459.6 4,475.2 4,506.8 4,489.8 4,530.8 4,559.8 30 Total 2,921.3 3,101.3 3,290.3 3,325.3 3,340.0 3,342.9 3,377.4 3.405.3 31 Compensation of employees 2,443.0 2,585.8 2,738.9 2,769.9 2,778.3 2,771.1 2,800.2 2.822.4 32 Wages and salaries 449.0 478.6 514.0 517.7 525.4 536.0 540.1 541.8 33 Government and government enterprises .. 1,994.0 2,107.2 2,224.9 2,252.2 2,253.0 2,235.1 2,260.1 2,280.6 34 Other 478.3 515.5 551.4 555.4 561.6 571.8 577.2 582.9 35 Supplement to wages and salaries 247.8 261.7 277.3 279.1 281.7 287.5 288.7 290.2 36 Employer contributions for social insurance 230.5 253.7 274.0 276.3 279.9 284.2 288.5 292.8 37 Other labor income 38 Proprietors' income1 324.3 347.0 373.2 368.8 373.9 364.2 380.0 382.5 39 Business and professional1 293.4 305.5 330.7 336.5 332.7 331.4 340.4 350.5 40 Farm1 30.9 41.4 42.5 32.4 41.2 32.8 39.6 32.0 41 Rental income of persons2 4.3 -7.9 -12.9 -10.4 -9.5 -11.9 -11.7 -14.2 42 Corporate profits1 365.0 351.7 319.0 299.8 296.1 302.1 303.5 306.1 43 Profits before tax3 347.5 344.5 332.3 335.1 326.1 309.1 306.2 318.2 44 Inventory valuation adjustment -27.3 -17.5 -14.2 -32.6 -21.2 6.7 9.9 -4.8 45 Capital consumption adjustment 44.7 24.7 .8 -2.7 -8.8 -13.6 -12.6 -7.3 46 Net interest 387.7 452.6 490.1 491.8 506.4 492.6 481.6 480.1 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 • February 1992 2.17 PERSONAL INCOME AND SAVING Billions of current dollars, except as noted; quarterly data at seasonally adjusted annual rates 1990 1991 AAccccoouunntt 11998888 11998899 11999900 Q3 Q4 Q1 Q2 Q3 PERSONAL INCOME AND SAVING 1 Total personal income 4075.9 4380.2 4679.8 4719.3 4764.7 4768.0 4821.1 4853.3 2 Wage and salary disbursements 2443.0 2585.8 2738.9 2769.8 2778.2 2770.9 2800.6 2822.4 3 Commodity-producing industries 699.1 723.8 745.4 751.2 745.2 733.4 735.2 742.3 4 Manufacturing 524.5 542.1 555.8 560.4 557.3 549.3 552.3 559.9 5 Distributive industries 575.3 607.5 634.6 640.4 639.0 635.1 642.0 644.0 6 Service industries 719.6 775.9 845.0 860.6 868.8 866.5 883.0 894.4 7 Government and government enterprises 449.0 478.6 514.0 517.7 525.2 535.8 540.5 541.8 8 Other labor income 230.5 253.7 274.0 276.3 279.9 284.2 288.5 292.8 9 Proprietors' income1 324.3 347.0 373.2 368.8 373.9 364.2 380.0 382.5 10 Business and professional1 293.4 305.5 330.7 336.5 332.7 331.4 340.4 350.5 11 Farm1 30.9 41.4 42.5 32.4 41.2 32.8 39.6 32.0 12 Rental income of persons2 4.3 -7.9 -12.9 -10.4 -9.5 -11.9 -11.7 -14.2 13 Dividends 108.4 119.8 124.8 124.8 127.0 128.7 127.4 128.7 14 Personal interest income 583.2 669.0 721.3 729.1 736.9 730.1 721.8 716.7 15 Transfer payments 576.7 624.4 684.9 687.7 705.8 737.2 751.5 763.7 16 Old-age survivors, disability, and health insurance benefits ... 300.4 325.1 352.0 353.0 358.4 373.1 377.2 381.7 17 LESS: Personal contributions for social insurance 194.5 211.7 224.3 226.7 227.5 235.4 237.0 239.3 18 EQUALS: Personal income 4075.9 4380.2 4679.8 4719.3 4764.7 4768.0 4821.1 4853.3 19 LESS: Personal tax and nontax payments 527.7 591.7 621.0 627.5 627.2 617.1 613.6 615.1 20 EQUALS: Disposable personal income 3548.2 3788.6 4058.8 4091.8 4137.5 4151.0 4207.5 4238.2 21 LESS: Personal outlays 3392.0 3621.6 3852.2 3895.3 3921.7 3937.5 3977.9 4024.9 22 EQUALS: Personal saving 156.2 166.9 206.6 1%.5 215.8 213.4 229.6 213.3 MEMO Per capita (1982 dollars) 23 Gross national product 4908.2 5248.2 5524.5 5576.8 5583.2 5611.7 5660.6 5720.1 24 Personal consumption expenditures 32%. 1 3517.9 3742.6 3785.2 3812.0 3827.7 3868.5 3916.4 25 Disposable personal income 3548.2 3788.6 4058.8 4091.8 4137.5 4151.0 4207.5 4238.2 26 Saving rate (percent) 4.4 4.4 5.1 4.8 5.2 5.1 5.5 5.0 GROSS SAVING 27 Gross saving 704.5 744.2 711.8 698.3 678.3 747.7 713.9 698.0 28 Gross private saving 802.8 827.3 851.3 821.9 853.9 873.8 893.0 876.4 29 Personal saving 156.2 166.9 206.6 1%.5 215.8 213.4 229.6 213.3 30 Undistributed corporate profits' 112.6 85.8 49.9 27.2 32.8 45.0 43.4 39.4 31 Corporate inventory valuation adjustment -27.3 -17.5 -14.2 -32.6 -21.2 6.7 9.9 -4.8 Capital consumption allowances 32 Corporate 327.6 350.5 365.5 367.5 372.7 380.1 383.2 384.6 33 Noncorporate 206.4 224.0 229.3 230.8 232.7 235.3 236.8 239.1 34 Government surplus, or deficit (-), national income and product accounts -98.3 -83.0 -139.5 -123.6 -175.6 -126il -179.1 -178.4 35 Federal -136.6 -124.2 -165.3 -149.7 -193.6 -146.4 -206.7 -210.2 36 State and local 38.4 41.1 25.7 26.1 18.0 20.4 27.6 31.8 37 Gross investment 676.1 741.5 719.9 726.5 680.4 765.8 730.4 720.0 38 Gross private domestic 793.6 837.6 802.6 821.8 750.9 709.3 708.8 740.9 39 Net foreign -117.5 -%.O -82.8 -95.3 -70.4 56.5 21.7 -20.9 40 Statistical discrepancy -28.4 -2.7 8.1 28.2 2.1 18.0 16.5 22.0 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 1990 1991 Item credits or debits 1989 Q3 Q4 Ql Q2r Q3P -126,236 -106,305 -92,123 -23,881 -23,402 10,501 3,028 -10,459 Not seasonally adjusted J ' -29,112 -25,136 15,507 4,593 -15,593 Merchandise trade balance^ -126,986 -115,917 -i 08,115 -28,760 -27,728 -18,394 -15,391 -20,486 Merchandise exports 320,337 361,451 389,550 %,638 100,580 100,900 104,245 104,532 Merchandise imports -447,323 -477,368 -497,665 -125,398 -128,308 -119,294 -119,636 -125,018 Military transactions, net -5,743 -6,203 -7,219 -1,683 -2,243 -2,329 -1,484 -1,168 Investment income, net 5,353 2,688 11,945 2,802 6,133 4,883 2,345 2,502 Other service transactions, net 16,082 28,618 33,595 8,086 9,716 9,402 10,429 10,630 Remittances, pensions, and other transfers . -4,437 -4,420 -4,843 -1,302 -1,201 -1,316 -1,315 -1,267 U.S. government grants (excluding military) -10,506 -11,071 -17,486 -3,024 -8,079 18,255 8,444 -670 11 Change in U.S. government assets other than official reserve assets, net (increase, -) 2,966 1,320 2,976 -314 4,759 1,422 -493 2,715 12 Change in U.S. official reserve assets (increase, -). -3,912 -25,293 -2,158 1,739 -1,092 -353 1,014 3,878 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) 127 -535 -192 363 -93 31 -190 6 15 Reserve position in International Monetary Fund. 1,025 471 731 8 -4 -341 72 -114 16 Foreign currencies -5,064 -25,229 -2,697 1,368 -995 -43 1,132 3,986 17 Change in U.S. private assets abroad (increase, -). -85,112 -104,637 -58,524 -28,114 -38,370 -1,992 -15,503 -18,564 18 Bank-reported claims3 -56,322 -51,255 5,333 -9,984 -24,513 20,598 1,215 -178 19 Nonbank-reported claims -3,064 2,581 -1,944 676 -2,509 -1,308 -2,076 20 U.S. purchases of foreign securities, net -7,846 -22,575 -28,476 -1,014 -7,546 -9,430 -12,833 -i 2,511 21 U.S. direct investments abroad, net -17,880 -33,388 -33,437 -17,792 -3,802 -11,852 -1,809 -5,875 22 Change in foreign official assets in United States (increase, +) .. 39,657 8,624 32,425 13,341 20,301 6,631 -3,105 4,309 23 U.S. Treasury securities 41,741 149 28,643 11,849 20,119 2,381 -2,287 5,717 24 Other U.S. government obligations 1,309 1,383 667 134 708 -29 -219 407 25 Other U.S. government liabilities -568 281 1,703 -248 1,102 1,012 370 1,302 26 Other U.S. liabilities reported by U.S. banks3 -319 4,976 2,998 1,871 -707 2,501 -1,084 -3,144 27 Other foreign official assets3 -2,506 1,835 -1,586 -265 -921 766 115 27 28 Change in foreign private assets in United States (increase, +).. 181,877 207,925 53,879 35,754 18,732 -7,360 6,608 18,507 29 U.S. bank-reported liabilities3 70,235 63,382 9,975 26,%8 17,261 -18,795 -28,687 8,840 30 U.S. nonbank-reported liabilities 5,626 5,454 3,779 4,260 -1,840 -1,616 -760 31 Foreign private purchases of U.S. Treasury securities, net 20,239 29,618 1,131 24 -2,029 3,409 13,434 — i ,3 89 32 Foreign purchases of other U.S. securities, net 26,353 38,920 1,781 -2,558 802 5,306 15,073 9,653 33 Foreign direct investments in United States, net 59,424 70,551 37,213 7,060 4,538 4,336 7,548 1,403 34 Allocation of special drawing rights 0 0 0 0 0 0 0 0 35 Discrepancy -9,240 18,366 63,526 1,475 19,072 -8,849 8,451 -386 36 Due to seasonal adjustments -6,473 2,007 3,995 166 -6,059 37 Statistical discrepancy in recorded data before seasonal adjustment -9,240 18,366 63,526 7,948 -12,844 8,285 5,673 MEMO Changes in official assets 38 U.S. officii reserve assets (increase, -) -3,912 -25,293 -2,158 1,739 -1,092 -353 1,014 3,878 39 Foreign official assets in United States excluding line 25 (increase, +) 40,225 8,343 30,722 13,589 19,199 5,619 -3,475 3,007 40 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) -2,9% 10,738 2,163 -1,699 575 -3,162 -4,298 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 m 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 • February 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 Apr. May June July Aug. Sept.r Oct.p 1 Exports of domestic and foreign merchandise, excluding grant-aid shipments 322,426 363,812 393,592 35,632 35,271 34,975 35,227 34,380 35,348 36,737 2 General imports, including merchandise for immediate consumption plus entries into bonded warehouses 440,952 473,211 495,311 40,139 40,062 38,764 41,176 40,910 42,282 43,465 3 Trade balance -118,526 -109,399 -101,718 -4,507 -4,790 -3,789 -5,949 -6,530 -6,934 -6,728 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 May June July Aug. Sept. Oct. NOV.P 1 Total 47,802 74,609 83,316 78,263 74,940 74,816 73,514 74,731 74,508 74,651 2 Gold stock, including Exchange Stabilization Fund1 11,057 11,059 11,058 11,057 11,062 11,062 11,062 11,062 11,059 11,058 3 Special drawing rights2,3 9,637 9,951 10,989 10,515 10,309 10,360 10,479 10,722 10,710 10,942 4 Reserve position in International Monetary Fund2 9,745 9,048 9,076 8,854 8,629 8,730 8,726 9,094 9,065 8,943 5 Foreign currencies4 17,363 44,551 52,193 47,837 44,940 44,664 43,247 43,853 43,674 43,708 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 May June July Aug. Sept. Oct. NOV.P 1 Deposits 347 589 369 196 223 314 256 384 223 346 Assets held in custody 2 U.S. Treasury securities2 232,547 224,911 278,499 279,695 273,893 274,514 279,394 279,013 280,249 285,905 3 Earmarked gold3 13,636 13,456 13,387 13,358 13,354 13,330 13,330 13,330 13,326 13,307 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 1988 1989 1990 Apr. May June July Aug. Sept. All foreign countries 1 Total, all currencies 505,595 545,366 556,925 538,814 530,707 532,698' 528,944r 527,534' 546,849' 2 Claims on United States 169,111 198,835 188,4% 181,011 172,742 180,816' 174,433 168,602' 177,146' 3 Parent bank 129,856 157,092 148,837 141,580 134,906 141,903 136,790 129,780 136,610 4 Other banks in United States , 14,918 17,042 13,2% 12,438 10,589 12,011' 11,100 12,377' 13,692' 5 Nonbanks 24,337 24,701 26,363 26,993 27,247 26,902 26,543 26,445 26,844 6 Claims on foreigners 299,728 300,575 312,449 301,248 298,820 294,421' 294,826' 2%,773' 300,147' 7 Other branches of parent bank 107,179 113,810 135,003 122,151 118,469 115,640' 112,445' 113,131' 115,078' 8 Banks 96,932 90,703 72,602 73,046 75,566 74,976' 77,471' 76,175' 77,053' 9 Public borrowers 17,163 16,456 17,555 17,825 17,620 17,453' 18,641' 19,262' 18,850' 10 Nonbank foreigners 78,454 79,606 87,289 88,226 87,165 86,352' 86,269' 88,205' 89,166' 11 Other assets 36,756 45,956 55,980 56,555 59.145 57,461' 59,685' 62,159' 69,556' 12 Total payable in U.S. dollars 357,573 382,498 379,479 372,769 363,468 373,122' 364,639' 358,773' 367,639' 13 Claims on United States 163,456 191,184 180,174 174,317 166,665 174,456' 167,984 163,134' 170,967' 14 Parent bank 126,929 152,294 142,962 137,343 130,732 137,943 132,514 126,357 133,024 15 Other banks in United States . 14,167 16,386 12,513 11,977 10,197 11,502' 10,605 11,903' 13,109' 16 Nonbanks 22,360 22,504 24,699 24,997 25,736 25,011 24,865 24,874 24,834 17 Claims on foreigners 177,685 169,690 174,451 173,544 172,657 171,752' 169,494' 166,957' 166,914' 18 Other branches of parent bank 80,736 82,949 95,298 87,895 85,369 84,316' 79,114' 79,318' 80,181' 19 Banks 54,884 48,3% 36,440 40,904 43,616 43,580' 45,587' 41,756' 40,647' 20 Public borrowers 12,131 10,961 12,298 12,9% 12,549 12,518' 13,602' 14,116' 13,529' 21 Nonbank foreigners 29,934 27,384 30,415 31,749 31,123 31,338' 31,191' 31,767' 32,557' 22 Other assets 16,432 21,624 24,854 24,908 24.146 26,914' 27,161' 28,682' 29,758' United Kingdom 23 Total, all currencies 156,835 161,947 184,818 168,985 169,192 165,534 161,869 162,879 172,113 24 Claims on United States 40,089 39,212 45,560 38,136 38,338 37,574 32,475 31,315 34,409 25 Parent bank 34,243 35,847 42,413 34,930 34,830 34,534 29,241 28,189 31,205 26 Other banks in United States 1,123 1,058 792 1,179 1,104 711 860 816 997 27 Nonbanks 4,723 2,307 2,355 2,027 2,404 2,329 2,374 2,310 2,207 28 Claims on foreigners 106,388 107,657 115,536 107,136 106,053 103,608 103,067 103,935 105,699 29 Other branches of parent bank 35,625 37,728 46,367 40,730 39,060 38,333 36,588 38,382 39,077 30 Banks 36,765 36,159 31,604 30,608 32,048 31,019 31,866 30,168 31,658 31 Public borrowers 4,019 3,293 3,860 3,711 3,657 3,584 3,676 3,717 3,502 32 Nonbank foreigners 29,979 30,477 33,705 32,087 31,288 30,672 30,937 31,668 31,462 33 Other assets 10,358 15,078 23,722 23,713 24,801 24,352 26,327 27,629 32,005 34 Total payable in U.S. dollars 103,503 103,208 116,762 108,566 105,588 106,536 101,040 100,966 105,243 35 Claims on United States 38,012 36,404 41,259 35,058 35,274 34,726 29,352 28,870 31,772 36 Parent bank 33,252 34,329 39,609 32,973 32,771 32,790 27,085 26,608 29,673 37 Other banks in United States 964 843 334 976 970 555 759 680 727 38 Nonbanks 3,7% 1,232 1,316 1,109 1,533 1,381 1,508 1,582 1,372 39 Claims on foreigners 60,472 59,062 63,701 62,186 60,125 58,565 57,861 56,127 56,354 40 Other branches of parent bank 28,474 29,872 37,142 32,842 31,297 30,108 29,111 30,279 30,840 41 Banks 18,494 16,579 13,135 15,460 16,118 14,983 15,723 12,534 12,485 42 Public borrowers 2,840 2,371 3,143 3,193 3,152 3,082 3,032 3,083 2,899 43 Nonbank foreigners 10,664 10,240 10,281 10,691 9,558 10,392 9,995 10,231 10,130 44 Other assets 5,019 7,742 11,802 11,322 10,691 13,245 13,827 15,969 17,117 Bahamas and Caymans 45 Total, all currencies 170,639 176,006 162,316 165,420 159,429 168,875' 169,675' 165,790' 169,709' 46 Claims on United States 105,320 124,205 112,989 113,916 107,837 114,809' 114,501 111,328' 115,837' 47 Parent bank 73,409 87,882 77,873 79,818 74,894 80,644 81,605 77,177 80,464 48 Other banks in United States 13,145 15,071 11,869 10,416 8,925 10,718' 9,683 l l^ 12,063' 49 Nonbanks 18,766 21,252 23,247 23,682 24,018 23,447 23,213 23,102 23,310 50 Claims on foreigners 58,393 44,168 41,356 42,564 42,7% 45,346' 46,696' 46,236' 45,558' 51 Other branches of parent bank 17,954 11,309 13,416 12,554 12,397 12,886' 10,88^ 10,774' 10,645' 52 Banks 28,268 22,611 16,310 17,955 18,560 20,917' 21,836' 21,111' 20,528' 53 Public borrowers 5,830 5,217 5,807 6,556 5,932 5,916' 7,136' 7,314' 7,069' 54 Nonbank foreigners 6,341 5,031 5,823 5,499 5,907 5,627' 6,844' 7,037' 7,316' 55 Other assets 6,926 7,633 7,971 8,940 8,7% 8,720' 8,478' 8,226' 8,314' 56 Total payable in U.S. dollars 163,518 170,780 158,390 161,381 155,643 164,971' 165,746' 161,717' 165,777' 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 • February 1992 3.14—Continued 1991 11999900 Apr. May June July Aug. Sept. Oct. All foreign countries 57 Total, all currencies 505,595 545,366 556,925 538,814 530,707 532,698r 528,944r 527,534' 546,849' 548,651 58 Negotiable certificates of deposit (CDs) .. 28,511 23,500 18,060 19,484 17,753 16,503 19,692 18,7% 17,579 18,928 59 To United States 185,577 197,239 189,412 181,132 173,102 187,706r 181,901' 177,706' 187,938' 185,566 60 Parent bank 114,720 138,412 138,748 124,691 118,346 128,033r 126,915' 121,675' 131,524' 129,506 61 Other banks in United States 14,737 11,704 7,463 9,932 8,998 11,789' 10, 10,085' 11,843' 10,356 62 Nonbanks 56,120 47,123 43,201 46,509 45,758 47,884r 44,8%' 45,946' 44,571' 45,704 63 To foreigners 270,923 296,850 311,668 300,907 301,433 290,277r 287,887 290,257 295,645' 295,177 64 Other branches of parent bank 111,267 119,591 139,113 122,789 119,765 116,253 112,521 112,845 114,101 108,495 65 Banks 72,842 76,452 58,986 63,908 66,207 57,236r 59,975 62,329 62,700' 68,474 66 Official institutions 15,183 16,750 14,791 18,398 19,803 20,394 17,245 18,030 19,420' 17,247 67 Nonbank foreigners 71,631 84,057 98,778 95,812 95,658 96,394 98,146 97,053 99,424' 100,%1 68 Other liabilities 20,584 27,777 37,785 37,291 38,419 38,212 39,464 40,775 45,687' 48,980 69 Total payable in U.S. dollars 367,483 396,613 383,522 373,468 360,363 372,552r 363,500' 359,854' 367,261' 365,824 70 Negotiable CDs 24,045 19,619 14,094 14,882 13,258 12,620 14,538 14,183 13,180 14,157 71 To United States 173,190 187,286 175,654 169,661 160,778 175,563r 170,241' 166,664' 176,199' 173,649 72 Parent bank 107,150 132,563 130,510 118,105 111,112 120,1W 120,189' 115,495' 125,022' 122,814 73 Other banks in United States 13,468 10,519 6,052 8,514 7,668 10,647r 8,815' 8,449' 10,368 9,011 74 Nonbanks 52,572 44,204 39,092 43,042 41,998 44,117r 41,237' 42,720' 40,809' 41,824 75 To foreigners 160,766 176,460 179,002 173,589 171,227 170,334r 163,451 164,188 163,551' 161,850 76 Other branches of parent bank 84,021 87,636 98,128 88,299 85,857 84,952 79,909 79,277 79,679 75,243 77 Banks 28,493 30,537 20,251 22,892 21,706 21,142r 21,470 23,330 21,246' 25,657 78 Official institutions 8,224 9,873 7,921 11,568 12,339 13,972 11,563 11,4% 12,591 10,565 79 Nonbank foreigners 40,028 48,414 52,702 50,830 51,325 50,268 50,509 50,085 50,035' 50,385 80 Other liabilities 9,482 13,248 14,772 15,336 15,100 14,035 15,270 14,819 14,331' 16,168 United Kingdom 81 Total, all currencies 156,835 161,947 184,818 168,985 169,192 165,534 161,869 162,879 172,113 172,795 82 Negotiable CDs 24,528 20,056 14,256 15,162 13,486 12,1% 14,889 14,148 12,941 14,145 83 To United States 36,784 36,036 39,928 28,450 28,618 31,084 26,599 27,915 31,534 29,137 84 Parent bank 27,849 29,726 31,806 21,676 19,951 23,238 19,545 20,367 23,707 21,080 85 Other banks in United States 2,037 1,256 1,505 1,175 1,413 1,092 1,490 1,662 1,724' 2,053 86 Nonbanks 6,898 5,054 6,617 5,599 7,254 6,754 5,564 5,886 6,103' 6,004 87 To foreigners 86,026 92,307 108,531 103,976 104,322 99,756 97,263 %,773 98,572 100,267 88 Other branches of parent bank 26,812 27,397 36,709 31,860 30,155 29,371 28,591 27,457 29,898 26,879 89 Banks 30,609 29,780 25,126 27,001 28,459 22,994 24,310 25,131 23,560 28,470 90 Official institutions 7,873 8,551 8,361 11,300 12,342 13,062 10,010 10,722 12,071 10,045 91 Nonbank foreigners 20,732 26,579 38,335 33,815 33,366 34,329 34,352 33,463 33,043 34,873 92 Other liabilities 9,497 13,548 22,103 21,397 22,766 22,498 23,118 24,043 29,066 29,246 93 Total payable in U.S. dollars 105,907 108,178 116,094 106,571 104,077 104,523 99,756 100,131 104,303 103,238 94 Negotiable CDs 22,063 18,143 12,710 13,291 11,610 10,833 12,758 12,337 11,249 12,397 95 To United States 32,588 33,056 34,697 24,690 24,245 27,106 22,355 23,788 27,272 24,394 % Parent bank 26,404 28,812 29,955 20,391 18,457 21,848 17,924 18,949 22,228 19,391 97 Other banks in United States 1,752 1,065 1,156 848 1,002 892 1,233 1,216 1,259 1,704 98 Nonbanks 4,432 3,179 3,586 3,451 4,786 4,366 3,198 3,623 3,785 3,299 99 To foreigners 47,083 50,517 60,014 59,440 58,849 58,068 55,433 54,848 56,829 56,639 100 Other branches of parent bank 18,561 18,384 25,957 22,452 21,671 20,452 19,509 18,480 20,878 18,319 101 Banks 13,407 12,244 9,488 9,931 9,654 8,758 9,678 9,731 8,408 12,044 102 Official institutions 4,348 5,454 4,692 8,239 8,914 10,032 7,519 7,929 9,149 7,050 103 Nonbank foreigners 10,767 14,435 19,877 18,818 18,610 18,826 18,727 18,708 18,394 19,226 104 Other liabilities 4,173 6,462 8,673 9,150 9,373 8,516 9,210 9,158 8,953 9,808 Bahamas and Caymans 105 Total, all currencies 170,639 176,006 162,316 165,420 159,429 168,875r 169,675' 165,790' 169,709' 169,904 106 Negotiable CDs 953 678 646 674 694 6% 904 %3 1,055 981 107 To United States 122,332 124,859 114,738 121,850 115,742 125,863r 126,714' 122,574' 127,707' 129,598 108 Parent bank 62,894 75,188 74,941 74,609 72,048 76,661r 81,172' 76,655' 81,668' 84,268 109 Other banks in United States 11,494 8,883 4,526 7,548 6,410 9,449r 7,484' 7,036' 8,841 7,070 110 Nonbanks 47,944 40,788 35,271 39,693 37,284 39,753r 38,058' 38,883' 37,198' 38,260 111 To foreigners 45,161 47,382 44,444 40,289 40,696 40,180 39,624 39,994 38,868' 36,861 112 Other branches of parent bank 23,686 23,414 24,715 21,645 22,017 21,701 21,765 21,846 20,767 19,675 in Banks 8,336 8,823 5,588 5,837 5,832 5,734 4,877 5,558 5,431' 5,218 114 Official institutions 1,074 1,097 622 676 736 931 661 655 647 666 115 Nonbank foreigners 12,065 14,048 13,519 12,131 12,111 11,814 12,321 11,935 12,023 11,302 116 Other liabilities 2,193 3,087 2,488 2,607 2,297 2,136 2,433 2,259 2,079' 2,464 117 Total payable in U.S. dollars 162,950 171,250 157,132 161,139 155,204 164,587r 165,339' 161,497' 165,046' 165,601 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 IItteemm 11998899 11999900 Apr. May June July Aug. Sept/ Oct." 1 312,477 344,504 344,605 351,017 346,511 349,864 356,153r 349,997 356,216 By type ? Liabilities reported by banks in the United States 36,4% 39,855 39,057 41,891 41,156 43,336 47,173r 38,412 40,318 3 U.S. Treasury bills and certificates3 76,985 79,424 81,087 82,421 84,526 86,071 88,5% 90,394 94,428 U.S. Treasury bonds and notes 4 Marketable 179,269 202,487 201,089 203,109 197,277 196,573 1%,284 197,114 197,561 5 Nonmarketable 568 4,491 4,610 4,642 4,672 4,704 4,734 4,765 4,7% 6 U.S. securities other than U.S. Treasury securities 19,159 18,247 18,762 18,954 18,880 19,180 19,366 19,312 19,113 By area 7 Western Europe 132,849 167,191 163,012 167,009 163,994 166,333 170,300" 165,045 169,926 8 Canada 9,482 8,671 8,453 9,507 9,229 9,260 10,001 9,608 9,121 9 Latin America and Caribbean 9,313 21,159 25,355 27,732 29,415 30,032 31,352 31,891 32,491 10 153,338 138,0% 137,662 136,510 133,764 134,288 134,387r 132,643 133,514 11 1,030 1,434 1,171 1,184 1,254 1,178 1,197 1,553 1,514 12 Other countries 6,469 7,955 8,953 9,073 8,851 8,771 8,914 9,255 9,648 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 Dec. Mar. June Sept. 55,438 74,980 67,835 70,413 64,347 59,236 63,370 51,271 68,983 65,127 66,855 67,309 61,481 66,535 18,861 25,100 20,491 29,672 27,510 27,545 32,139 32,410 43,884 44,636 37,182 39,799 33,935 34,3% 551 364 33,,550077 10,594 7,357 22,,773333 22,,334488 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 • February 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 Apr. May June July Aug/ Sept/ Oct." 1 All foreigners 685,339 736,878 754,005 732,847 727,365 723,281 722,670 732,769 736,065 745,781 2 Banks' own liabilities 514,532 577,498 577,190 562,129 556,510 549,382 547,948 552,494 554,672 560,927 3 Demand deposits 21,863 22,032 21,723 19,751 18,863 18,7% 17,929 18,423 19,841 17,649 4 Time deposits 152,164 168,780 168,003 157,148 151,772 148,452 148,566 146,290 149,703 153,897 5 Other. 51,366 67,823 65,809 73,718 72,632 65,438 66,870 72,524 67,766 73,049 6 Own foreign offices4 289,138 318,864 321,655 311,512 313,244 316,6% 314,583 315,257 317,362 316,332 7 Banks' custody liabilities5 170,807 159,380 176,815 170,718 170,855 173,899 174,722 180,275 181,393 184,854 8 U.S. Treasury bills and certificates6 115,056 91,100 %,7% 9977,,331111 9988,,001199 100,876 110011,,773333 110044,,994499 110077,,001199 111122,,226677 9 Other negotiable and readily transferable instruments 16,426 19,526 17,578 16,475 16,959 17,944 17,287 16,508 16,820 17,089 10 Other 39,325 48,754 62,441 56,933 55,876 55,079 55,702 58,818 57,554 55,498 11 Nonmonetary international and regional organizations 3,224 4,894 5,918 6,237 6,057 5,917 6,226 6,935 6,905 8,097 12 Banks' own liabilities 2,527 3,279 4,540 5,061 4,675 3,863 4,117 4,%1 5,400 6,3% 13 Demand deposits 71 96 36 76 24 26 44 28 36 28 14 Time deposits 1,183 927 1,050 1,980 2,151 2,010 1,732 1,540 2,297 2,477 15 Other. 1,272 2,255 3,455 3,006 2,501 1,827 2,341 3,393 3,067 3,881 16 Banks' custody liabilities5 698 1,616 1,378 1,176 1,381 2,054 2,109 1,974 1,505 1,701 17 U.S. Treasury bills and certificates6 57 197 364 275 662 1,287 11,,440044 11,,226699 11,,003322 11,,224466 18 Other negotiable and readily transferable instruments7 641 1,417 1,014 901 719 767 705 705 473 455 19 Other 0 2 0 0 0 0 0 0 0 0 20 Official institutions9 135,241 113,481 119,278 120,144 124,311 125,682 129,407 135,769 128,806 134,746 21 Banks' own liabilities 27,109 31,108 34,885 36,0% 38,545 36,788 38,805 42,955 33,864 36,351 22 Demand deposits 1,917 2,1% 1,924 1,633 1,448 1,542 1,3% 1,683 1,645 1,307 23 Time deposits2 9,767 10,495 14,334 13,546 14,346 14,638 14,941 14,722 13,275 13,790 24 Other. 15,425 18,417 18,628 20,917 22,751 20,608 22,468 26,550 18,944 21,254 25 Banks' custody liabilities5 108,132 82,373 84,393 84,048 85,766 88,894 90,602 92,814 94,942 98,395 26 U.S. Treasury bills and certificates6 103,722 76,985 79,424 8811,,008877 8822,,442211 8844,,552266 8866,,007711 8888,,559966 9900,,339944 9944,,442288 27 Other negotiable and readily transferable instruments 4,130 5,028 4,766 2,831 3,194 4,101 4,324 4,047 4,128 3,832 28 Other 280 361 203 130 152 267 207 171 420 135 29 Banks10 459,523 515,275 535,202 510,795 500,983 499,494 494,662 500,599 509,557 511,566 30 Banks' own liabilities 409,501 454,273 458,457 440,068 432,311 431,592 427,575 429,787 439,924 443,363 31 Unaffiliated foreign banks 120,362 135,409 136,802 128,555 119,068 114,8% 112,992 114,530 122,562 127,041 32 Demand deposits 9,948 10,279 10,053 9,073 8,674 8,584 8,423 8,252 8,959 8,124 33 Time deposits 80,189 90,557 88,558 79,232 72,355 69,826 70,078 70,558 74,848 78,118 34 Other1. 30,226 34,573 38,192 40,250 38,038 36,486 34,491 35,720 38,755 40,799 35 Own foreign offices4 289,138 318,864 321,655 311,512 313,244 316,6% 314,583 315,257 317,362 316,322 36 Banks' custody liabilities5 50,022 61,002 76,745 70,728 68,672 67,903 67,087 70,812 69,633 68,203 37 U.S. Treasury bills and certificates6 7,602 9,367 10,669 10,030 8,712 8,666 7,970 8,242 8,161 8,363 38 Other negotiable and readily transferable instruments 55,,772255 5,124 5,341 6,116 5,877 5,833 5,408 5,316 5,819 6,024 39 Other 36,694 46,510 60,735 54,582 54,083 53,404 53,709 57,254 55,653 53,816 40 Other foreigners 87,351 103,228 93,606 95,671 %,014 92,188 92,375 89,466 90,797 91,372 41 Banks' own liabilities 75,396 88,839 79,307 80,905 80,978 77,139 77,451 74,791 75,484 74,817 42 Demand deposits 9,928 9,460 9,711 8,%9 8,717 8,644 8,066 8,460 9,201 8,190 43 Time deposits 61,025 66,801 64,062 62,391 62,920 61,977 61,815 59,470 59,283 59,512 44 Other. 4,443 12,577 5,534 9,545 9,341 6,518 7,570 6,861 7,000 7,115 45 Banks' custody liabilities5 11,956 14,389 14,299 14,766 15,035 15,049 14,924 14,675 15,313 16,555 46 U.S. Treasury bills and certificates6 3,675 4,551 6,339 5,919 66,,222244 6,397 66,,228888 66,,884422 77,,443322 88,,223300 47 Other negotiable and readily transferable instruments7 5,929 7,958 6,457 6,626 7,170 7,244 6,850 6,440 6,400 6,778 48 Other 2,351 1,880 1,503 2,221 1,642 1,408 1,786 1,393 1,481 1,547 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 6,425 7,203 7,073 7,321 7,563 7,934 6,813 7,062 7,542 7,5% 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 1989 1990 Apr. May June July Aug. Sept/ 1 Total 685,339 736,878 754,005 732,847 727,365 723,281 722,670 732,769R 736,065 2 Foreign countries 682,115 731,984 748,087 726,610 721,308 717,364 716,444 725,834" 729,160 3 Europe 231,912 237,501 254,452 241,708 238,174 236,448 228,728 234,877r 237,010 4 Austria 1,155 1,233 1,229 1,147 1,100 1,067 1,234 961 1,109 5 Belgium-Luxembourg 10,022 10,648 12,382 12,393 11,593 11.854 12,292 11,168 13,912 6 Denmark 2,200 1,415 1,399 945 988 1,370 1,197 1,065 1,038 7 Finland 285 570 602 724 453 732 1,222 1,170 618 8 France 24,777 26,903 30,946 26,969 26,270 26,382 26,747 26,580 27,475 9 Germany 6,772 7,578 7,485 8,436 8,488 7,822 7,056 7,037 7,500 10 Greece 672 1,028 934 809 785 791 817 851 944 11 Italy 14,599 16,169 17,735 15,043 14,723 14,345 13,883 12,507 12,507 12 Netherlands 5,316 6,613 5,350 6,773 6,686 6,100 6,069 5,651 6,310 13 Norway 1,559 2,401 2,357 1,098 1,167 1,926 1,653 1,279 1,444 14 Portugal 903 2,418 2,958 2,628 2,410 2,392 2,279 2,313 2,391 15 Spain 5,494 4,364 7.544 10,006 10,095 9,392 10,496 10,396 10,834 16 Sweden 1,284 1,491 1,837 720 525 745 858 1,424 1,437 17 Switzerland 34,199 34,496 36,690 36,716 34,884 36,124 34,818 35,977 38,350 18 Turkey 1,012 1,818 1,169 1,490 1,535 1,806 1,720 1,780 1,538 19 United Kingdom 111,811 102,362 109,555 101,567 99,879 98,199 89,995 95,359" 95,628 2 2 1 0 Y O u th g e o r s l W av e ia st ern Europe" 8,5 5 9 2 8 9 13 1 , , 5 4 6 7 3 4 11,6 9 8 2 9 8 10 1 , , 3 0 3 3 5 4 12,7 9 9 5 7 3 11,3 9 7 2 1 5 12 1 , , 4 0 2 1 3 6 15,0 9 2 5 5 5 r 9.6 8 4 5 0 4 22 U.S.S.R ... 138 350 119 138 129 178 75 136 117 23 Other Eastern Europe12 591 608 1.545 2,739 2,713 2,925 2,878 3,243 3,364 24 Canada 21,062 18,865 20,349 23,264 22,740 23,850 22,519 23,919r 24,038 25 Latin America and Caribbean 271,146 311,028 327,370 325,444 328,845 328,380 335,338 337,704r 340,634 26 Argentina 7,804 7,304 7,365 7,704 7,591 7,519 7,110 6,978r 6,858 27 Bahamas 86,863 99,341 107,386 96,307 97,485 96.855 98,021 93,977r 96,577 28 Bermuda 2,621 2,884 2,822 2,753 3,054 2,919 3,087 3,520" 3,120 29 Brazil 5,314 6,351 5,834 5,806 5,756 5,749 5,806 6,049" 6,183 30 British West Indies 113,840 138,309 141,719 150,993 151,629 150,939 157,372 162,590" 163,040 31 Chile 2,936 3,212 3,145 3,107 3,240 3,233 3,308 3,162r 3,092 32 Colombia 4,374 4,653 4,492 4,347 4,408 4,448 4,421 4,735r 4.641 33 Cuba 10 10 11 8 8 7 2 9 8 34 Ecuador 1,379 1,391 1,379 1,260 1,293 1,288 1,270 l,236r 1,226 35 Guatemala 1,195 1,312 1,541 1,571 1,595 1,664 1,641 1,613 1,585 36 Jamaica 269 209 257 233 237 273 219 235r 213 37 Mexico 15,185 15,423 16,625 17,508 18,657 19,552 20,008 20,357 20,937 38 Netherlands Antilles 6,420 6,310 7,357 6,874 5,962 5,935 5,830 5,732r 5,565 39 Panama 4,353 4,362 4,574 4,290 4,549 4,672 4,438 4,748r 4,374 40 Peru 1,671 1,984 1,294 1,427 1,412 1,341 1,334 l,287r 1,305 41 Uruguay 1,898 2,284 2,520 2,463 2,488 2,573 2,452 2,439" 2,507 42 Venezuela 9,147 9,482 12,271 11,833 12,665 12,585 12,176 12,249" 12,210 43 Other 5,868 6,206 6,779 6,959 6,815 6,828 6,843 6,788r 7,193 44 Asia 147,838 156,201 136,842 127,737 122,893 120,618 121,985 121,313" 118,830 China 45 Mainland 1,895 1,773 2,421 2,415 2,446 2,412 2,408 2,247 2,198 46 Taiwan 26,058 19,588 11,246 11,001 10,649 9,838 11,178 11,579" 9,425 47 Hong Kong 12,248 12,416 12,754 16,141 15,035 14,582 14,720 14,206" 14,468 48 India 699 780 1,233 1,895 1,968 1,959 2,122 2,373 2,474 49 Indonesia 1,180 1,281 1,238 1,309 1,303 1,612 1,191 1,232 1,065 50 Israel 1,461 1,243 2,767 2,849 2,564 2,355 2,376 2,697 2,848 51 Japan 74,015 81,184 67,074 53,172 52,031 51,482 50,008 48,499 48,089 52 Korea 2,541 3,215 2,287 2,887 2,193 2,102 2,364 2,272" 2,107 53 Philippines 1,163 1,766 1,585 1,681 1,521 1,587 1,537 1,465 1,647 54 Thailand 1,236 2,093 1.443 2,571 2,502 2,386 2,368 2,650 3,348 55 Middle-East oil-exporting countries13 12,083 13,370 15,829 14,655 14,122 13,355 15,738 14,835" 15,310 56 Other 13,260 17,491 16,965 17,162 16,560 16,949 15,975 17,258 15,851 57 Africa 3,991 3,824 4,630 4,495 4,695 4,188 3,929 4,017 4,483 58 Egypt 911 686 1,425 927 1,364 1,017 999 957 1,125 59 Morocco 68 78 104 89 97 122 81 91 82 60 South Africa 437 206 228 220 202 241 221 137 242 61 Zaire 85 86 53 50 52 45 24 58 37 62 Oil-exporting countries14 1,017 1,121 1,110 1,434 1,140 1,105 960 992 1,145 63 Other 1,474 1,648 1,710 1,776 1,840 1,658 1,644 1,782 1,852 64 Other countries 6,165 4,564 4.444 3,962 3,962 3,879 3,945 4,004 4,165 65 Australia 5,293 3,867 3,807 3,118 3,232 3,097 3,173 3,149 3,231 66 All other 872 697 637 845 730 781 772 855 934 67 Nonmonetary international and regional organizations 3,224 4,894 5,918 6,237 6,057 5,917 6,226 6,935 6,905 68 International 2,503 3,947 4,390 4,895 4,641 4,025 4,346 4,361 4,867 69 Latin American regional 589 684 1,048 913 802 1,410 1,273 1,531 1,094 70 Other regional16 133 263 479 429 614 482 607 1,043 944 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 • February 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 Apr. May June July Aug. Sept/ Oct.? 1 Total 491,165 534,492 511,543 508,419 503,064 504,738 497,441 502,445r 499,949 509,170 2 Foreign countries 489,094 530,630 506,750 505,558 500,134 500,656 495,407 500,000r 497,443 507,354 3 Europe 116,928 119,025 113,093 100,367 99,221 99,001 97,828 98,587r 103,512 103,883 4 Austria 483 415 362 392 220 303 269 185 297 374 5 Belgium-Luxembourg 8,515 6,478 5,473 5,472 7,841 6,721 5,924 6,534 7,185 7,690 6 Denmark 483 582 497 765 909 8% 898 945 670 611 7 Finland 1,065 1,027 1,047 1,168 862 668 642 771 908 1,1% 8 France 13,243 16,146 14,468 13,934 13,578 14,302 14,292 13,827 14,520 13,085 9 Germany 2,329 2,865 3,343 3,236 2,631 2,782 2,690 3,118r 2,665 2,078 10 Greece 433 788 727 688 762 654 619 495 473 487 11 Italy 7,936 6,662 6,052 5,429 5,827 6,329 5,911 5,931 6,574 6,400 12 Netherlands 2,541 1,904 1,761 2,222 1,960 2,122 2,234 2,101 1,955 2,175 13 Norway 455 609 782 679 695 701 661 599 679 682 14 Portugal 261 376 292 293 322 378 260 308 266 301 15 Spain 1,823 1,930 2,668 3,344 3,082 2,056 2,582 1,995 2,370 2,439 16 Sweden 1,977 1,773 2,094 1,944 1,937 1,968 1,858 1,633 1,894 1,842 17 Switzerland 3,895 6,141 4,202 3,240 3,487 2,%9 3,627 3,609 4,049 4,192 18 Turkey 1,233 1,071 1,405 1,440 1,445 1,593 1,458 1,407 1,368 1,192 19 United Kingdom 65,706 65,527 65,151 52,553 50,159 51,363 50,836 51,625r 54,348 55,533 20 Yugoslavia 1,390 1,329 1,142 1,012 %5 932 877 820 802 803 21 Other Western Europe 1,152 1,302 597 1,118 999 734 832 1,024 773 714 22 U.S.S.R 1,255 1,179 530 904 956 911 772 1,015 1,157 1,358 23 Other Eastern Europe3 754 921 499 533 585 618 586 645 559 731 24 Canada 18,889 15,451 16,091 17,600 17,713 17,431 16,719 14,495 14,754 16,005 25 Latin America and Caribbean 214,264 230,438 231,506 240,899 244,314 248,511 245,982 249,214r 250,944 253,111 26 Argentina 11,826 9,270 6,967 6,420 6,363 6,128 5,945 5,749r 5,749 6,000 27 Bahamas 66,954 77,921 76,525 77,231 79,429 78,024 81,295 78,414r 80,316 85,598 28 Bermuda 483 1,315 4,056 4,935 7,182 3,893 5,813 11,773 6,847 4,292 29 Brazil 25,735 23,749 17,995 16,524 15,594 15,249 12,351 12,332r 12,435 11,853 30 British West Indies 55,888 68,749 88,565 105,220 105,686 114,954 110,553 111,019 112,567 113,567 31 Chile 5,217 4,353 3,271 3,050 3,032 2,917 2,823 2,779 2,734 2,726 32 Colombia 2,944 2,784 2,587 2,334 2,281 2,349 2,202 2,368 2,430 2,543 33 Cuba 1 1 0 0 0 0 0 0 0 0 34 Ecuador 2,075 1,688 1,387 1,326 1,339 1,344 1,263 1,238 1,115 1,293 35 Guatemala 198 197 191 222 220 203 190 182 186 191 36 Jamaica 212 297 238 197 181 187 144 150 150 162 37 Mexico 24,637 23,376 14,851 15,609 15,177 15,411 15,450 15,279 16,406 16,847 38 Netherlands Antilles 1,306 1,921 7,998 1,4% 1,589 1,639 1,563 1,540 3,606 1,333 39 Panama 2,521 1,740 1,471 1,475 1,410 1,423 1,501 1,490 1,489 1,574 40 Peru 1,013 771 663 670 722 726 712 728 719 1,026 41 Uruguay 910 929 786 620 615 590 577 571 577 555 42 Venezuela 10,733 9,652 2,571 2,211 2,223 2,222 2,405 2,403 2,452 2,391 43 Other 1,612 1,726 1,384 1,360 1,271 1,252 1,195 1,199 1,166 1,160 44 130,881 157,474 138,722 139,243 131,465 128,051 127,560 130,220r 120,612 126,977 China 45 Mainland 762 634 620 641 567 992 659 575 621 597 46 Taiwan 4,184 2,776 1,952 1,685 1,390 2,019 1,6% 1,522 1,460 1,577 47 Hong Kong 10,143 11,128 10,648 10,891 9,870 9,217 9,051 9,154 9,467 10,203 48 India 560 621 655 574 478 432 409 425 449 481 49 Indonesia 674 651 933 1,029 982 891 874 858r 852 824 50 Israel 1,136 813 774 871 829 851 818 919 944 993 51 Japan 90,149 111,300 90,699 91,482 88,821 85,689 88,183 90,604 80,758 84,816 52 Korea 5,213 5,323 5,766 6,193 5,584 5,924 5,597 5,383 5,140 5,339 53 Philippines 1,876 1,344 1,247 1,478 1,452 1,506 1,647 1,682 1,633 1,919 54 Thailand 848 1,140 1,573 1,662 1,747 1,977 1,975 1,870 1,934 1,826 55 Middle East oil-exporting countries 6,213 10,149 10,749 12,286 9,636 10,468 9,771 9,741 10,439 9,973 56 Other 9,122 11,594 13,106 10,449 10,110 8,087 6,880 7,487 6,915 8,429 57 Africa 5,718 5,890 5,445 5,355 5,464 5,429 5,417 5,344r 5,272 5,264 58 Egypt 507 502 380 304 305 315 324 315 312 294 59 Morocco 511 559 513 538 603 590 597 576 579 589 60 South Africa 1,681 1,628 1,525 1,627 1,641 1,626 1,627 1,610 11,,449988 1,494 61 Zaire 17 16 16 18 18 12 9 9 88 12 62 Oil-exporting countries 1,523 1,648 1,486 1,372 1,365 1,336 1,285 1,273 1,270 1,260 63 Other 1,479 1,537 1,525 1,497 1,533 1,550 1,575 l,561r 1,605 1,615 64 Other countries 2,413 2,354 1,892 2,093 1,957 2,233 1,901 2,140 2,349 2,114 65 Australia 1,520 1,781 1,413 1,569 1,470 1,621 1,384 1,464 1,526 1,503 66 Mother 894 573 479 524 487 611 517 676 823 611 67 Nonmonetary international and regional organizations6 2,071 3,862 4,793 2,861 2,930 4,081 2,034 2,445r 2,506 1,816 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 Apr. May June July Aug.r Sept.r Oct.P 1 Total .. . 555555533333338888888,,,,,,,666666688888889999999 555555599999993333333,,,,,,,000000088888887777777 555555577777777777777,,,,,,,222222211111113333333 555555577777770000000,,,,,,,444444477777776666666 555555566666665555555,,,,,,,333333377777775555555 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 444444499999991111111,,,,,,,111111166666665555555 555555533333334444444,,,,,,,444444499999992222222 555555511111111111111,,,,,,,555555544444443333333 508,419 503,064 555555500000004444444,,,,,,,777777733333338888888 497,441 502,445 444444499999999999999,,,,,,,999999944444449999999 509,170 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 66666662222222,,,,,,,666666655555558888888 66666660000000,,,,,,,555555511111111111111 44444441111111,,,,,,,888888833333338888888 42,960 38,928 33333339999999,,,,,,,333333311111115555555 34,814 35,395 33333335555555,,,,,,,555555544444447777777 34,933 44 OOwwnn ffoorreeiiggnn ooffffiicceess22 222222255555557777777,,,,,,,444444433333336666666 2222222%%%%%%%,,,,,,,000000011111111111111 333333300000004444444,,,,,,,333333311111115555555 304,028 298,517 333333300000005555555,,,,,,,999999911111114444444 305,392 301,552 333333300000004444444,,,,,,,333333311111114444444 309,568 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111122222229999999,,,,,,,444444422222225555555 111111133333334444444,,,,,,,888888888888885555555 111111111111117777777,,,,,,,888888866666660000000 112,640 117,674 111111111111114444444,,,,,,,888888855555558888888 114,871 116,499 111111111111113333333,,,,,,,555555555555551111111 119,674 66 DDeeppoossiittss 66666665555555,,,,,,,888888899999998888888 77777778888888,,,,,,,111111188888885555555 66666665555555,,,,,,,222222255555552222222 64,748 68,822 66666668888888,,,,,,,666666699999995555555 69,066 70,492 66666668888888,,,,,,,555555500000007777777 72,505 77 OOtthheerr 66666663333333,,,,,,,555555522222227777777 55555556666666,,,,,,,777777700000000000000 55555552222222,,,,,,,666666600000008888888 47,892 48,852 44444446666666,,,,,,,111111166666662222222 45,805 46,007 44444445555555,,,,,,,000000044444444444444 47,169 88 AAllll ootthheerr ffoorreeiiggnneerrss 44444441111111,,,,,,,666666644444446666666 44444443333333,,,,,,,000000088888885555555 44444447777777,,,,,,,555555533333330000000 48,791 47,945 44444444444444,,,,,,,666666655555550000000 42,364 48,999 44444446666666,,,,,,,555555533333337777777 44,995 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss33...... 44444447777777,,,,,,,555555522222224444444 55555558888888,,,,,,,555555599999994444444 66666665555555,,,,,,,666666677777770000000 66666665555555,,,,,,,777777733333338888888 66666665555555,,,,,,,444444422222226666666 8888888,,,,,,,222222288888889999999 11111113333333,,,,,,,000000011111119999999 11111114444444,,,,,,,333333377777775555555 11111119999999,,,,,,,333333388888880000000 11111119999999,,,,,,,555555511111112222222 11 Negotiable and readily transferable 22222225555555,,,,,,,777777700000000000000 33333330000000,,,,,,,999999988888883333333 44444440000000,,,,,,,999999988888887777777 33333335555555,,,,,,,444444400000004444444 33333335555555,,,,,,,000000055555554444444 12 Outstanding collections and other 11111113333333,,,,,,,555555533333335555555 11111114444444,,,,,,,555555599999992222222 11111110000000,,,,,,,333333300000007777777 11111110000000,,,,,,,999999955555553333333 11111110000000,,,,,,,888888866666660000000 13 MEMO: Customer liability on 11111119999999,,,,,,,5555555%%%%%%% 11111112222222,,,,,,,888888899999999999999 11111113333333,,,,,,,666666655555559999999 11111110000000,,,,,,,444444411111110000000 8888888,,,,,,,666666666666665555555 1144 DDoollllaarr ddeeppoossiittss iinn bbaannkkss aabbrrooaadd,, rreeppoorrtteedd bbyy nnoonnbbaannkkiinngg bbuussiinneessss eenntteerrpprriisseess iinn tthhee UUnniitteedd SSttaatteess'' 45,360 45,744 44,562 42,700 40,087 36,063 40,434R 43,432 37,455 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 1990 1991 MMaattuurriittyy,, bbyy bboorrrroowweerr aanndd aarreeaa 11998877 11998888 11998899 Dec. Mar. June Sept.? I 235,130 233,184 238,123 207,035 199,171 199,078 195,386 By borrower 2 Maturity of one year or less 163,997 172,634 178,346 165,773 158,146 158,749 159,441 3 Foreign public borrowers 25,889 26,562 23,916 19,310 21,205 18,563 16,990 4 All other foreigners 138,108 146,071 154,430 146,463 136,941 140,186 142,451 5 Maturity of more than one year 71,133 60,550 59,776 41,262 41,025 40,328 35,945 6 Foreign public borrowers 38,625 35,291 36,014 22,406 22,435 20,613 18,263 7 All other foreigners 32,507 25,259 23,762 18,855 18,590 19,715 17,682 By area Maturity of one year or less 8 59,027 55,909 53,913 49,157 49,593 49,909 51,197 9 Canada 5,680 6,282 5,910 5,439 5,909 7,221 5,691 10 Latin America and Caribbean 56,535 57,991 53,003 49,731 42,686 40,616 47,266 11 35,919 46,224 57,755 53,134 54,032 53,093 49,292 17 Africa 2,833 3,337 3,225 3,040 3,008 2,945 2,815 13 All other3 4,003 2,891 4,541 5,272 2,918 4,966 3,180 Maturity of more than one year2 14 Europe 6,6% 4,666 4,121 3,869 4,329 4,308 3,815 15 Canada 2,661 1,922 2,353 3,291 3,387 3,891 3,671 16 Latin America and Caribbean 53,817 47,547 45,816 25,977 24,%2 23,758 19,757 17 3,830 3,613 4,172 5,189 5,404 5,721 6,095 18 Africa 1,747 2,301 2,630 2,374 2,426 2,456 2,385 19 All other3 2,381 501 684 561 517 195 222 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 • February 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 Sept. Dec. Mar. June Sept. Dec. Mar. June Sept.p 1 Total 382.4 346.3 346.5 338.8 333.9 321.7 332.1 317.8 324.6 320.2r 337.2 2 G-10 countries and Switzerland 159.7 152.7 146.4 152.9 146.6 139.3 144.3 132.1 129.6 130.2r 135.0 3 Belgium-Luxembourg 10.0 9.0 6.9 6.3 6.7 6.2 6.5 5.9 6.2 6.1 5.8 4 France 13.7 10.5 11.1 11.7 10.4 10.2 11.1 10.4 9.7 10.5 11.1 5 Germany 12.6 10.3 10.4 10.5 11.2 11.2 11.1 10.6 8.8 8.3 9.7 6 Italy 7.5 6.8 6.8 7.4 5.9 5.4 4.4 5.0 4.0 3.6 4.5 7 Netherlands 4.1 2.7 2.4 3.1 3.1 2.7 3.8 3.0 3.3 3.3 3.0 8 Sweden 2.1 1.8 2.0 2.0 2.1 2.3 2.3 2.2 2.0 2.4 2.1 9 Switzerland 5.6 5.4 6.1 7.1 6.2 6.3 5.6 4.4 3.7 3.3 3.9 10 United Kingdom 68.8 66.2 63.7 67.2 64.0 59.9 62.5 60.8 62.0 59.9r 65.6 11 Canada 5.5 5.0 5.9 5.4 4.8 5.1 5.1 5.9 6.7 8.2 5.8 12 Japan 29.8 34.9 31.0 32.2 32.2 30.1 32.0 23.9 23.2 24.6 23.4 13 Other developed countries 26.4 21.0 21.0 20.7 23.0 22.4 23.1 22.6 23.1 21.1 21.7 14 Austria 1.9 1.5 1.5 1.5 1.5 1.5 1.6 1.4 1.4 1.1 1.0 15 Denmark 1.7 1.1 1.1 1.1 1.2 1.1 1.1 1.1 .9 1.2 .9 16 Finland 1.2 1.1 1.1 1.0 1.1 .9 .8 .7 1.0 .8 .7 17 Greece 2.0 1.8 2.4 2.5 2.6 2.7 2.8 2.7 2.5 2.4 2.3 18 Norway 2.2 1.8 1.4 1.4 1.7 1.4 1.6 1.6 1.5 1.5 1.4 19 Portugal .6 .4 .4 .4 .4 .8 .6 .6 .6 .6 .5 20 Spain 8.0 6.2 6.9 7.1 8.2 7.8 8.4 8.3 9.0 7.0 8.3 21 Turkey 2.0 1.5 1.2 1.2 1.3 1.4 1.6 1.7 1.7 1.9 1.6 22 Other Western Europe 1.6 1.3 1.0 .7 1.0 1.1 .7 .9 .8 .9 1.0 23 South Africa 2.9 2.4 2.1 2.0 2.0 1.9 1.9 1.8 1.8 1.8 1.6 24 Australia 2.4 1.8 2.1 1.6 2.1 1.8 2.0 1.8 1.9 2.0 2.4 25 OPEC countries2 17.4 16.6 16.2 17.1 15.5 15.3 14.4 12.8 17.1 14.0 15.6 26 Ecuador 1.9 1.7 1.5 1.3 1.2 1.1 1.1 1.0 .9 .9 .8 27 Venezuela 8.1 7.9 7.4 7.0 6.1 6.0 6.0 5.0 5.1 5.3 5.6 28 Indonesia 1.9 1.7 2.0 2.0 2.1 2.0 2.3 2.7 2.8 2.6 2.8 29 Middle East countries 3.6 3.4 3.5 5.0 4.3 4.4 3.3 2.5 6.6 3.7 5.0 30 African countries 1.9 1.9 1.9 1.7 1.8 1.8 1.7 1.7 1.6 1.5 1.5 31 Non-OPEC developing countries 97.8 85.3 81.2 77.5 68.8 66.7 67.1 65.4 66.3 65.(f 65.8 Latin America 32 Argentina 9.5 9.0 7.6 6.3 5.6 5.2 5.0 5.0 4.7 4.6 4.7 33 Brazil 24.7 22.4 20.9 19.0 17.5 16.7 15.4 14.4 13.9 11.6 11.0 34 Chile 6.9 5.6 4.9 4.6 4.3 3.7 3.6 3.5 3.6 3.6 3.7 35 Colombia 2.0 2.1 1.6 1.8 1.8 1.7 1.8 1.8 1.7 1.6 1.6 36 Mexico 23.5 18.8 17.2 17.7 12.8 12.6 12.8 13.0 13.7 14.3 16.1 37 Peru 1.1 .8 .6 .6 .5 .5 .5 .5 .5 .5 .4 38 Other Latin America 2.8 2.6 2.9 2.8 2.8 2.3 2.4 2.3 2.2 2.0 1.9 Asia China 39 Mainland .3 .3 .3 .3 .3 .2 .2 .2 .4 .6 .4 40 Taiwan 8.2 3.7 5.0 4.5 3.8 3.6 4.0 3.5 3.6 4.1 4.1 41 India 1.9 2.1 2.7 3.1 3.5 3.6 3.6 3.3 3.5 3.0 2.8 42 Israel 1.0 1.2 .7 .7 .6 .7 .6 .5 .5 .5 .5 43 Korea (South) 5.0 6.1 6.5 5.9 5.3 5.6 6.2 6.2 6.8 6.9 6.0 44 Malaysia 1.5 1.6 1.7 1.7 1.8 1.8 1.8 1.9 2.0 2.1 2.3 45 Philippines 5.2 4.5 4.0 4.1 3.7 3.9 3.9 3.8 3.7 3.7 3.6 46 Thailand .7 1.1 1.3 1.3 1.1 1.3 1.5 1.5 1.6 1.7 1.9 47 Other Asia3 .7 .9 1.0 1.0 1.2 1.1 1.6 1.7 2.1 2.3 2.8 Africa 48 Egypt .6 .4 .5 .4 .4 .5 .4 .4 .4 .4 .4 49 Morocco .9 .9 .8 .9 .9 .9 .9 .8 .8 .7 .7 50 Zaire .0 .0 .0 .0 .0 .0 .0 .0 .0 :0 .0 51 Other Africa3 1.3 1.1 1.0 1.0 .9 .8 .8 1.0 .8 .8 .8 52 Eastern Europe 3.2 3.6 3.5 3.5 3.3 2.9 2.7 2.3 2.1 2.1 1.8 53 U.S.S.R .3 .7 .8 .7 .8 .4 .4 .2 .3 .4 .4 54 Yugoslavia 1.8 1.8 1.7 1.6 1.4 1.4 1.3 1.2 1.0 1.0 .8 55 Other 1.1 1.1 1.1 1.3 1.2 1.1 1.1 .9 .8 .7 .7 56 Offshore banking centers 54.5 44.2 49.2 36.6 43.1 40.3 42.2 42.5 49.6 48.3r 52.6 57 Bahamas 17.3 11.0 11.4 5.5 9.2 8.5 8.9 2.8 8.3 6.8 6.6 58 Bermuda .6 .9 1.3 1.7 1.2 2.5 4.5 4.4 4.4 4.2 7.1 59 Cayman Islands and other British West Indies 13.5 12.9 15.3 9.0 10.9 8.5 9.0 11.5 13.7 14.9 14.2 60 Netherlands Antilles 1.2 1.0 1.1 2.3 2.6 2.3 2.2 7.9 1.1 1.4 3.5 61 Panama 3.7 2.5 1.5 1.4 1.3 1.4 1.5 1.4 1.4 1.3 1.3 62 Lebanon .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 63 Hong Kong 11.2 9.6 10.7 9.7 9.8 10.0 8.7 7.7 11.5 12.4r 12.0 64 Singapore 7.0 6.1 7.8 7.0 8.0 7.0 7.5 6.6 8.9 7.2 7.7 65 Others5 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 66 Miscellaneous and unallocated6 23.2 22.6 28.7 30.3 33.3 34.5 38.1 39.8 36.6 39.4 44.6 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 28,302 32,952 38,182 38,384r 39,390" 44,145" 42,292" 39,962" 39,278" 7 Payable in dollars 22,785 27,335 33,393 34,030 34,911 39,015 37,894 35,715" 35,259" 3 Payable in foreign currencies 5,517 5,617 4,789 4,355r 4,479" 5,130" 4,398" 4,246" 4,019" By type 4 Financial liabilities 12,424 14,507 17,891 17,445" 19,025" 19,898" 17,979" 17,104" 16,767 5 Payable in dollars 8,643 10,608 14,047 14,169 15,663 16,059 14,731 14,182" 13,872 6 Payable in foreign currencies 3,781 3,900 3,844 3,276" 3,363" 3,839" 3,247" 2,922" 2,895 7 Commercial liabilities 15,878 18,445 20,292 20,939 20,365 24,247 24,313 22,858 22,511" 8 Trade payables 7,305 6,505 7,590 7,443 6,935 10,040 9,945 8,224 8,665" 9 Advance receipts and other liabilities 8,573 11,940 12,701 13,496 13,430 14,206 14,368 14,634 13,846" 10 Payable in dollars 14,142 16,727 19,346 19,861 19,248 22,956 23,163 21,533 21,387" 11 Payable in foreign currencies 1,737 1,717 945 1,078 1,117 1,291 1,150 1,325 1,124" By area or country Financial liabilities 1? 8,320 9,962 11,672 11,143" 11,802" 11,251" 9,813" 99,,118877"" 99,,224444 n Belgium-Luxembourg 213 289 340 318 332 350 344 285 297 14 382 359 258 268" 165" 463" 695" 627" 535 15 551 699 464 431" 547" 606" 622" 561" 664 16 Netherlands 866 880 941 897" 928" 942" 990" 945" 917 17 Switzerland 558 1,033 541 526" 552 628" 576 577 535 18 United Kingdom 5,557 6,533 8,830 8,372" 8,832" 7,632" 5,976" 5,551" 5,706 19 Canada 360 388 610 352 306 309 223 272 287 70 Latin America and Caribbean 1,189 839 1,357 2,022" 2,774" 3,560" 3,400" 3,636" 3,308 ?1 Bahamas 318 184 157 354 312 395 371 392" 375 V Bermuda 0 0 17 2 0 0 0 0 12 ?3 25 0 0 0 0 0 0 0 0 74 British West Indies 778 645 724 1,186" 1,920" 2,548" 2,407" 2,674" 2,319 ?5 Mexico 13 1 6 5 4 4 5 6 6 26 Venezuela 0 0 0 0 0 0 4 4 4 V 2,451 3,312 4,151 3,821 4,085 4,296" 4,132" 4,005" 3,918 78 Japan 2,042 2,563 3,299 2,783 2,883 3,161" 2,930" 2,932" 2,865 29 Middle East oil-exporting countries 8 3 2 3 5 4 5 1 4 30 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 33 5,516 7,319 8,944 9,203 8,559 9,831 1100,,223322 99,,660055 88,,881166"" 34 Belgium-Luxembourg 132 158 175 232 291 245 275 261 254" 35 426 455 877 888 1,049 1,263 1,197 1,209 1,245" 36 909 1,699 1,392 1,176 990 1,051 1,269 1,380 1,044" 37 423 587 697 687 606 699 837 715 750" 38 Switzerland 559 417 641 604 628 729 761 656 586" 39 United Kingdom 1,599 2,079 2,620 2,927 2,440 2,778 2,792 2,734 2,308" 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 1,631" 4? 18 49 41 37 22 18 12 21 12" 43 168 286 308 516 412 371 538 494 . 505" 44 46 95 100 121 109 129 145 214 180" 45 British West Indies 19 34 27 18 29 42 30 35 43 46 189 217 304 241 288 506 429 304 364" 47 Venezuela 162 114 154 86 119 120 122 109 121" 48 6,565 6,915 7,166 7,000 7,065 8,868 8,977 8,235 8,847" 49 2,578 3,094 2,914 2,748 3,189 3,283 3,617 3,467 3,383" 50 Middle East oil-exporting countries • 1,964 1,385 1,401 1,394 1,125 2,321 1,730 1,268 1,699" 51 574 576 844 759 889 1,318 841 650 594 52 Oil-exporting countries3 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 • February 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 11998888rr 11998899rr Mar. June Sept. Dec. Mar. June 1 Total 30,964 33,805 31,129 29,454r 31,355r 30,758r 32,919r 33,690' 35,849r 2 Payable in dollars 28,502 31,425 28,795 27,300r 29,026r 28,363r 30,498r 33,851r 3 Payable in foreign currencies 2,462 2,381 2,334 2,154 2,329 2,395 2,421 2,231r l,997r By type 4 Financial claims 20,363 21,640 17,320 16,158r 17,725r 16,307r 17,627r 18,032r 19,586r 5 Deposits 14,894 15,643 10,421 10,461 9,901 10,359 11,513 11,475r ll,198r 6 Payable in dollars 13,765 14,544 9,495 9,583 8,820 9,165 10,501 10,533 10,494r 7 Payable in foreign currencies 1,128 1,099 927 878 1,082 1,193 1,012 942r 705r 8 Other financial claims 5,470 5,997 6,899 5,697r 7,823r 5,949r 6,114r 6,557r 8,387r 9 Payable in dollars 4,656 5,220 6,145 5,007r 7,090r 5,2%r 5,247r 5,861r 7,699r 10 Payable in foreign currencies 814 777 754 690 733 652 866 6%r 688r 11 Commercial claims 10,600 12,166 13,809 13,2% 13,631 14,450 15,292 15,658 16,263r 12 Trade receivables 9,535 11,091 12,191 11,691 11,924 12,674 13,415 13,595 13,%7r 13 Advance payments and other claims 1,065 1,075 1,618 1,605 1,707 1,776 1,877 2,063 2,2%r 14 Payable in dollars 10,081 11,660 13,156 12,710 13,117 13,901 14,749 15,066 15,658r 15 Payable in foreign currencies 519 505 653 586 514 549 543 593 605r By area or country Financial claims 16 Europe 9,531 10,278 6,915 6,804r 9,574r 7,939r 7,879r 9,297r 10^ 17 Belgium-Luxembourg 7 18 28 22 126 27 76 85r 74r 18 France 332 203 153 182r 126r 145r 358r 193r 255r 19 Germany 102 120 87 386r 76r 79r 302r 249r 233r 20 Netherlands 350 348 303 316 3391 327r 3301 443r 494r 21 Switzerland 65 217 91 108r 131r 163r 293r 358r 367r 22 United Kingdom 8,467 9,039 6,010 5,569r 8,551r 6,97 lr 6,276 7,754r 9,088r 23 Canada 2,844 2,325 1,904 1,758 2,036 1,989 2,887 l^tF 1,986r 24 Latin America and Caribbean 7,012 8,160 7,590 6,984 5,490 5,642 5,757 5,986r 5,844r 25 Bahamas 1,994 1,846 1,461 1,662 992 977 1,261 1,714 1,03 r 26 Bermuda 7 19 7 4 3 4 3 6 4 27 Brazil 63 47 224 79 84 70 68 68 127r 28 British West Indies 4,433 5,763 5,486 4,824 4,003 4,191 4,021 3,769r 4,302r 29 Mexico 172 151 94 152 164 158 177 179 161 30 Venezuela 19 21 20 21 20 23 25 28 29 31 Asia 879 623 590 526r 534r 53 lr 860r 568r 757r 32 Japan 605 354 213 191r 185r 207r 523r 246r 409r 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 countries3 7 10 12 11 8 7 0 3 1 36 All other4 33 148 180 18r 28r 158r 206r 268r 275r Commercial claims 37 Europe 4,180 5,181 6,193 6,035 6,072 6,490 7,046 7,005 7,542r 38 Belgium-Luxembourg 178 189 242 220 209 188 211 221 220 39 France 650 672 963 964 924 1,206 1,240 1,267 l,408r 40 Germany 562 669 696 699 670 638 803 859 957r 41 Netherlands 133 212 479 453 478 491 551 591 756r 42 Switzerland 185 344 305 270 234 300 298 323 299 43 United Kingdom 1,073 1,324 1,572 1,688 1,582 1,673 1,7% 1,645 l,820r 44 Canada 936 983 1,076 1,145 1,145 1,144 1,049 1,194 l,248r 45 Latin America and Caribbean 1,930 2,241 2,174 2,053 2,198 2,393 2,305 2,305 2,433r 46 Bahamas 19 36 57 22 17 25 14 15 16r 47 Bermuda 170 230 323 243 284 340 246 232 245 48 Brazil 226 299 293 228 232 251 320 308 297r 49 British West Indies 26 22 36 38 47 35 40 49 43 50 Mexico 368 461 507 521 575 649 636 657 71 r 51 Venezuela 283 227 147 188 223 224 189 190 195r 52 Asia 2,915 2,993 3,555 3,271 3,463 3,621 4,044 4,292 4,159r 53 Japan 1,158 946 1,197 1,072 1,0% 1,221 1,3% 1,749 l,604r 54 Middle East oil-exporting countries 450 453 518 433 418 407 459 548 51C 55 Africa 401 435 419 419 387 371 486 390 428r 56 Oil-exporting countries3 144 122 108 89 97 72 67 68 59 57 All other4 238 333 392 372 365 432 362 472 453r 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 J O an c . t . - Apr. Mayr Juner Julyr Aug.r Sept.r Oct." U.S. corporate securities STOCKS 1 214,071 173,293 175,425 20,577 19,230 17,342 16,462 17,934 12,919 17,201 2 Foreign sales 204,129 188,419 162,538 17,440 15,900 16,107 15,304 16,192 13,659 16,791 3 Net purchases, or sales (—) 9,941 -15,126 12,887 3,137 3,330 1,234 1,158 1,742 -740 410 4 Foreign countries 10,175 -15,197 12,338 3,059 3,276 1,191 1,135 1,606 -850 365 5 Europe 476 -8,479 2,288 1,639 1,214 713 5 753 -567 -452 6 France -708 -1,234 193 -45 83 170 -41 39 -95 -21 7 Germany -830 -367 -148 13 24 45 -8 21 62 12 8 Netherlands 79 -397 -130 30 20 64 47 -209 38 6 9 Switzerland -3,277 -2,866 376 552 290 346 42 96 -48 -93 10 United Kingdom 3,683 -2,980 1,161 686 585 -149 -130 831 -501 -216 11 -881 886 2,989 111 712 383 159 439 16 385 1? Latin America and Caribbean 3,042 -1,330 2,649 120 242 285 160 315 25 366 13 Middle East1 3,531 -2,435 -130 -174 207 -460 272 67 -402 -6 14 Other Asia 3,577 -3,477 4,188 1,236 829 96 110 -33 210 267 15 Japan 3,330 -2,891 1,447 1,163 669 74 -15 -96 135 156 16 131 -63 132 0 21 9 6 4 -7 20 17 Other countries 299 -298 224 128 51 165 423 61 -125 -215 18 Nonmonetary international and regional organizations -234 71 548 78 55 4444 2233 113366 111100 4455 BONDS2 19 Foreign purchases 120,550 118,764 121,059 10,291 14,434 12,242 9,929 14,989 1144,,339977 1122,,668877 20 Foreign sales 87,533 102,027 99,460 9,083 11,651 8,637 7,681 10,812 12,315 10,582 21 Net purchases, or sales (-) 33,017 16,737 21,599 1,207 2,783 3,605 2,248 4,177 2,082 2,105 22 Foreign countries 32,664 17,208 21,873 1,307 2,842 3,666 2,275 4,274 2,121 2,168 ?3 18,907 10,079 11,039 1,189 1,749 2,113 856 1,727 -136 1,692 ?4 372 373 669 34 86 2 15 -26 93 -25 75 Germany -238 -377 1,130 114 400 -120 -1 106 156 213 76 Netherlands 850 172 292 84 23 45 -1 47 -18 44 77 -511 284 936 -56 206 318 9 116 -52 -67 78 United Kingdom 17,965 10,383 8,260 789 932 1,784 564 1,405 359 1,856 79 1,116 1,906 1,175 247 374 68 34 -40 -155 86 30 Latin America and Caribbean 3,686 4,291 1,683 188 -118 524 378 172 130 -365 31 Middle East1 -182 76 1,619 -25 20 160 430 449 350 182 3? 9,025 1,104 6,460 -301 831 898 558 2,015 1,957 526 33 Japan 6,292 747 4,707 -240 544 685 285 1,818 1,149 237 34 Africa 56 % 32 8 10 -1 -1 4 -2 12 35 Other countries 57 -344 -135 3 -23 -96 20 -53 -23 35 36 Nonmonetary international and regional organizations 353 -471 -275 -100 -58 -62 -27 --9977 --3399 --6633 Foreign securities 37 Stocks, net purchases, or sales (-)3 -13,062 -9,205 -27,619 -2,540 -3,292 -3,592 -3,155 -3,521 -2,165 -2,348 38 109,850 122,641 95,401 7,942 8,627 9,973 10,172 9,586 9,906 11,292 39 122,912 131,846 123,020 10,482 11,919 13,565 13,327 13,107 12,071 13,640 40 Bonds, net purchases, or sales (—) -5,493 -22,487 -13,838 -254 -489 -1,547 -807 -2,168 -1,171 -4,156 41 234,770 314,545 268,242 20,779 22,147 19,916 22,041 22,186 23,409 33,230 42 Foreign sales 240,263 337,032 282,079 21,033 22,636 21,462 22,848 24,354 24,580 37,386 43 Net purchases, or sales (-), of stocks and bonds -18,556 -31,692 -41,456 -2,793 -3,781 -5,138 -3,962 -5,689 -3,336 -6,504 44 Foreign countries -18,594 -29,019 -40,316 -2,917 -3,252 -5,418 -4,476 -5,794 -3,516 -6,137 45 -17,663 -8,418 -24,086 348 -419 -3,030 -5,035 -4,769 -2,670 -5,0% 46 -3,730 -7,502 -8,316 -2,290 -943 -1,011 278 -1,009 -352 -1,619 47 Latin America and Caribbean 426 -8,954 398 8 -1,633 -26 130 108 454 570 48 2,532 -3,828 -8,965 -987 -159 -1,172 105 -305 -1,185 -197 49 93 -137 -126 10 4 -198 8 -7 2 1 50 Other countries -251 -180 779 -4 -101 19 38 188 235 204 51 Nonmonetary international and regional organizations 38 -2,673 -1,140 123 -529 280 514 110055 118800 --336677 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 • February 1992 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1991 1991 Country or area 1989 1990 J O an ct . . - Apr. May June July Aug. Sept.r Oct." Transactions, net purchases or sales (-) during period1 1 Estimated total2 54,203 19,439 12,110 2,826 15,31R -5,830 725 1,356 -3,862 403 2 Foreign countries2 52,301 19,276 12,809 2,583 15,293r -5,337 407 722 -2,804 -208 3 Europe2 36,286 19,040 2,134 -1,358 4,409" -4,250 -1,082 1,554 464 193 4 Belgium-Luxembourg 1,048 10 345 37 113r -102 -109 71 -190 1 5 Germany2 7,904 5,880 -5,303 -549 1,433 -1,458 684 -360 195 326 6 Netherlands -1,141 1,077 -2,889 -292 -165r -794 -997 -372 -426 549 7 Sweden 693 1,152 -1,170 -410 560 31 -299 -239 3 46 8 Switzerland2 1,098 112 678 -622 230 207 -218 292 -184 195 9 United Kingdom 20,198 -1,414 3,626 260 1,699 -1,249 -398 388 -32 -334 10 Other Western Europe 6,508 12,202 6,830 214 540 -886 258 1,774 11,,009900 -590 11 Eastern Europe -21 13 16 5 -3 3 -3 0 88 0 12 Canada 698 -4,617 -474 566 342 -114 395 -118 78 -838 13 Latin America and Caribbean 464 14,730 14,308 5,561 10,481 161 1,669 1,436 -1,076 -2,086 14 Venezuela 311 33 -119 2 2 20 7 -20 -2 20 15 Other Latin America and Caribbean -322 3,939 6,908 2,969 5,687 -233 242 -2,010 -1,883 -14 16 Netherlands Antilles 475 10,757 7,519 2,590 4,793 374 1,420 3,466 809 -2,092 .17 Asia 13,297 -11,031 -1,703 -2,179 12 -879 -491 -2,115 -2,067 3,465 18 Japan 1,681 -14,864 -3,936 -3,379 711 1,422 45 -364 -3,625 4,111 19 116 313 392 16 1 104 7 27 10 39 20 Mother 1,439 842 -1,848 -22 48 -358 -91 -62 -213 -981 21 Nonmonetary international and regional organizations 1,902 163 -700 243 18r -493 318 634 -1,058 611 22 International 1,473 287 -1,340 35 43r -21 168 654 -1,211 287 23 Latin American regional 231 -2 217 225 -186 -9 150 -146 152 72 MEMO 24 Foreign countries2 52,301 19,276 12,809 2,583 15,293r -5,337 407 722 -2,804 -208 25 Official institutions 26,840 23,218 -4,926 886 2,020 -5,832 -704 -289 830 447 26 Other foreign2 25,461 -3,942 17,735 1,698 13,273r 495 1,111 1,011 -3,634 -655 Oil-exporting countries 27 Middle East3 8,148 -387 -6,752 -513 -562 -505 -643 -3,731 -795 316 28 Africa4 -1 0 20 5 0 0 0 0 0 0 1. Estimated official and private transactions in marketable U.S. Treasury 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and securities 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 Dec. 31, 1991 Rate on Dec. 31, 1991 Rate on Dec. 31, 1991 Country Country Country Month Percent Month Percent Month effective effective effective Austria.. 8.0 Dec. 1991 Germany, Fed. Rep. of, 8.0 Dec. 1991 Norway 10.50 July 1990 Belgium . 8.5 Dec. 1991 Italy 12.0 Nov. 1991 Switzerland 7.0 Aug. 1991 Canada.. 7.67 Dec. 1991 Japan 4.5 Dec. 1991 United Kingdom2 Denmark 9.5 Dec. 1991 Netherlands 8.5 Dec. 1991 France'.. 9.5 Dec. 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 11998899 11999900 11999911 June July Aug. Sept. Oct. Nov. Dec. 1 Eurodollars 9.16 8.16 5.86 6.08 6.01 5.65 5.50 5.34 4.96 4.48 2 United Kingdom 13.87 14.73 11.47 11.21 11.04 10.85 10.24 10.38 10.44 10.73 3 Canada 12.20 13.00 9.07 8.83 8.78 8.73 8.59 8.29 7.75 7.50 4 Germany 7.04 8.41 9.15 8.95 9.06 9.23 9.16 9.28 9.33 9.48 5 Switzerland 6.83 8.71 8.01 7.89 7.74 7.80 7.90 8.09 7.89 7.99 6 Netherlands 7.28 8.57 9.19 9.08 9.09 9.27 9.21 9.27 9.32 9.59 7 France 9.27 10.20 9.49 9.59 9.46 9.46 9.30 9.20 9.41 9.97 8 Italy 12.44 12.11 12.04 11.48 11.74 11.86 11.63 11.44 11.66 12.46 9 Belgium 8.65 9.70 9.30 9.08 9.12 9.25 9.01 9.22 9.39 9.61 10 Japan 5.39 7.75 7.33 7.79 7.56 7.31 6.70 6.41 6.22 6.02 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 • February 1992 3.28 FOREIGN EXCHANGE RATES1 Currency units per dollar 1991 CCoouunnttrryy//ccuurrrreennccyy 11998899 11999900 11999911 July Aug. Sept. Oct. Nov. Dec. 1 Australia/dollar2 79.186 78.069 77.872 77.156 78.235 79.369 79.251 78.660 77.122 2 Austria/schilling 13.236 11.331 11.686 12.562 12.267 11.910 11.887 11.408 11.003 3 Belgium/franc 39.409 33.424 34.195 36.751 35.890 34.878 34.787 33.391 32.198 4 Canada/dollar 1.1842 1.1668 1.1460 1.1493 1.1452 1.1370 1.1279 1.1302 1.1467 5 China, P.R./yuan 3.7673 4.7921 5.3337 5.3693 5.3725 5.3869 5.3917 5.3994 5.4232 6 Denmark/krone 7.3210 6.1899 6.4038 6.9030 6.73% 6.5367 6.5246 6.2947 6.0831 7 Finland/markka 4.2963 3.8300 4.0521 4.3295 4.2325 4.1241 4.1155 4.1953 4.2447 8 France/franc 6.3802 5.4467 5.6468 6.05% 5.9244 5.7621 5.7583 5.5391 5.3406 9 Germany/deutsche mark 1.8808 1.6166 1.6610 1.7852 1.7435 1.6933 1.6893 1.6208 1.5630 10 Greece/drachma 162.60 158.59 182.63 195.46 192.69 188.07 188.50 183.68 179.52 11 Hong Kong/dollar 7.8008 7.7899 7.7712 7.7610 7.7646 7.7524 7.7542 7.7591 7.7738 12 India/rupee 16.213 17.492 22.712 25.613 25.846 25.834 25.797 25.802 25.818 13 Ireland/pound2 141.80 165.76 158.26 136.48 153.38 157.87 158.21 164.75 170.46 14 Italy/lira 1,372.28 1,198.27 1,241.28 1,329.55 1,303.31 1,266.25 1,263.20 1,221.04 1,182.21 15 Japan/yen 138.07 145.00 134.59 137.83 136.82 134.30 130.77 129.63 128.04 16 Malaysia/ringgit 2.7079 2.7057 2.7503 2.7868 2.7806 2.7577 2.7469 2.7412 2.7417 17 Netherlands/guilder 2.1219 1.8215 1.8720 2.0114 1.9650 1.9084 1.9039 1.8269 1.7618 18 New Zealand/dollar2 59.561 59.619 57.832 56.681 57.353 57.989 56.306 56.352 55.256 19 Norway/krone 6.9131 6.2541 6.4912 6.%27 6.8118 6.6266 6.6136 6.3643r 6.1558 20 Portugal/escudo 157.53 142.70 144.77 154.20 149.72 145.64 145.41 141.43 138.90 21 Singapore/dollar 1.9511 1.8134 1.7283 1.7555 1.7269 1.7002 1.6940 1.6709 1.6453 22 South Africa/rand 2.6214 2.5885 2.7633 2.8819 2.8704 2.8316 2.8314 2.7916 2.7665 23 South Korea/won 674.29 710.64 736.73 731.76 733.90 744.18 753.54 757.44 761.68 24 Spain/peseta 118.44 101.96 104.01 111.81 108.92 106.28 106.54 102.56 99.70 25 Sri Lanka/rupee 35.947 40.078 41.200 41.213 41.723 41.935 42.179 42.374 42.523 26 Sweden/krona 6.4559 5.9231 6.0521 6.4609 6.3311 6.1652 6.1552 5.9246 5.7158 27 Switzerland/franc 1.6369 1.3901 1.4356 1.5481 1.5201 1.4803 1.4781 1.4348 1.3855 28 Taiwan/dollar 26.407 26.918 26.759 26.982 26.730 26.559 26.406 25.975 25.759 29 Thailand/baht 25.725 25.609 25.528 25.745 25.720 25.617 25.397 25.497 25.431 30 United Kingdom/pound2 163.82 178.41 176.74 165.13 168.41 172.65 172.31 177.% 182.72 MEMO 31 United States/dollar3 98.60 89.09 89.84 95.19 93.47 91.18 90.69 87.98 85.65 1. Averages of certified noon buying rates in New York for cable transfers. currencies often 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 December 31, 1990 May 1991 A72 March 31, 1991 August 1991 A72 June 30, 1991 November 1991 A70 September 30, 1991 February 1992 A70 Terms of lending at commercial banks February 1991 August 1991 A78 May 1991 October 1991 All August 1991 December 1991 A70 November 1991 February 1992 A76 Assets and liabilities of U.S. branches and agencies of foreign banks December 31, 1990 June 1991 A72 March 31, 1991 November 1991 A76 June 30, 1991 December 1991 A74 September 30, 1991 February 1992 A80 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 tables follow. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • February 1992 4.20 DOMESTIC AND FOREIGN OFFICES, Insured Commercial Bank Assets and Liabilities1-2 Consolidated Report of Condition, September 30, 1991 Millions of dollars Banks with domestic Banks with foreign offices offices only IItteemm TToottaall Total Foreign Domestic Over 100 Under 100 1 Total assets6 3,415,788 1,918,010 429,474 1,558,727 1,125,806 371,971 2 Cash and balances due from depository institutions 299,183 208,200 88,727 119,473 67,297 23,685 3 Cash items in process of collection, unposted debits, and currency and coin n.a. 92,294 1,727 90,567 35,721 n.a. 4 Cash items in process of collection and unposted debits n.a. n.a. n.a. 75,037 25,238 n.a. 5 Currency and coin n.a. n.a. n.a. 15,530 10,483 n.a. 6 Balances due from depository institutions in the United States n.a. 33,686 22,095 11,591 18,096 n.a. 7 Balances due from banks in foreign countries and foreign central banks n.a. 67,222 64,759 2,463 3,595 n.a. 8 Balances due from Federal Reserve Banks n.a. 14,997 145 14,852 9,887 n.a. MEMO 9 Noninterest-bearing balances due from commercial banks in the United States (included in balances due from depository institutions in the United States) n.a. n.a. n.a. 7,282 13,727 9,106 10 Total securities, loans and lease financing receivables, net 2,815,284 1,483,833 n.a. n.a. 999,090 332,361 11 Total securities, book value 657,630 269,248 30,045 239,203 269,471 118,911 12 U.S. Treasury securities and U.S. government agency and corporation 486,455 186,171 3,222 118822,,994499 220066,,002200 9944,,226655 13 U.S. Treasury securities n.a. 59,713 1,599 58,113 85,017 n.a. 14 U.S. government agency and corporation obligations n.a. 126,458 1,622 124,836 121,002 n.a. 15 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 153,127 75,272 1,248 74,024 55,416 22,439 16 All other n.a. 51,186 374 50,812 65,586 n.a. 17 Securities issued by states and political subdivisions in the United States 74,287 24,288 711 23,577 34,351 15,648 18 Other domestic debt securities n.a. 28,200 1,103 27,097 24,054 n.a. 19 All holdings of private certificates of participation in pools of residential mortgages 3,487 1,989 11 11,,997799 11,,226699 222288 20 All other domestic debt securities 56,429 26,211 1,093 25,118 22,785 7,433 21 Foreign debt securities n.a. 25,112 23,796 1,316 409 n.a. 72 Equity securities 11,452 5,477 1,213 4,264 4,638 1,337 23 5,568 1,837 111 1,726 2,736 996 74 Investments in mutual funds 3,465 895 22 873 1,672 898 75 Other 2,339 1,029 90 939 1,156 154 76 Less: Net unrealized loss 236 88 1 87 91 56 27 Other equity securities 5,884 3,641 1,103 2,538 1,902 341 28 Federal funds sold and securities purchased under agreements to resell 161,311 86,665 611 86,054 54,035 20,611 79 Federal funds sold 133,085 64,266 n.a. n.a. 48,459 20,359 30 Securities purchased under agreements to resell 28,227 22,399 n.a. n.a. 5,575 252 31 Total loans and lease financing receivables, gross 2,062,131 1,168,241 204,168 964,074 695,969 197,921 32 LESS: Unearned income on loans 11,670 4,406 1,276 3,130 5,517 1,747 33 Total loans and leases (net of unearned income) 2,050,461 1,163,835 202,891 960,944 690,452 196,174 34 LESS: Allowance for loan and lease losses 53,698 35,494 n.a. n.a. 14,869 3,335 35 LESS: Allocated transfer risk reserves 421 420 n.a. n.a. 0 0 36 EQUALS: Total loans and leases, net 1,996,342 1,127,920 n.a. n.a. 675,583 192,839 Total loans, gross, by category 37 Loans secured by real estate 842,962 410,010 25,529 338844,,448811 330,727 110022,,222255 38 Construction and land development n.a. n.a. n.a. 69,128 33,448 6,500 39 Farmland n.a. n.a. n.a. 2,042 6,170 10,109 40 1-4 family residential properties n.a. n.a. n.a. 191,736 171,896 56,778 41 Revolving, open-end loans, extended under lines of credit n.a. n.a. n.a. 36,842 28,672 3,344 47, n.a. n.a. n.a. 154,894 143,224 53,434 43 Multifamily (5 or more) residential properties n.a. n.a. n.a. 10,659 9,483 2,002 44 Nonfarm nonresidential properties n.a. n.a. n.a. 110,916 109,730 26,836 45 48,919 39,884 15,488 24,396 8,759 276 46 To commercial banks in the United States n.a. 21,229 407 20,822 8,259 n.a. 47 To other depository institutions in the United States n.a. 1,197 252 945 433 n.a. 48 To banks in foreign countries n.a. 17,458 14,829 2,629 67 n.a. 49 Loans to finance agricultural production and other loans to farmers 35,839 5,672 282 5,390 10,060 20,107 50 Commercial and industrial loans 569,574 403,941 97,859 306,082 130,496 35,137 51 To U.S. addressees (domicile) n.a. 327,928 23,632 304,295 130,130 n.a. 52 To non-U.S. addressees (domicile) n.a. 76,013 74,227 1,787 366 n.a. 53 Acceptances of other banks 1,966 814 355 459 687 465 54 U.S. banks n.a. 366 22 344 n.a. n.a. 55 Foreign banks n.a. 447 332 115 n.a. n.a. 56 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 383,802 158,371 17,600 140,771 189,251 36,180 57 Credit cards and related plans 131,148 51,271 n.a. n.a. 77,307 2,570 58 Other (includes single payment and installment) 252,655 107,100 n.a. n.a. 111,945 33,610 59 Obligations (other than securities) of states and political subdivisions in the U.S. (includes nonrated industrial development obligations) 30,579 1177,,441100 227755 1177,,113355 1111,,771122 11,,445588 60 Taxable 1,468 970 138 832 433 65 61 29,112 16,440 137 16,303 11,279 1,393 6? 112,336 102,314 42,362 59,953 8,446 1,576 63 Loans to foreign governments and official institutions n.a. 25,596 24,566 1,029 8888 n.a. 64 Other loans n.a. 76,719 17,795 58,924 88,,335599 n.a. 65 Loans for purchasing and carrying securities n.a. n.a. n.a. 13,092 1,485 n.a. 66 All other loans n.a. n.a. n.a. 45,832 6,873 n.a. 67 Lease financing receivables 36,154 29,825 4,418 25,407 5,831 498 68 Assets held in trading accounts 71,566 69,834 36,877 32,915 1,595 136 69 Premises and fixed assets (including capitalized leases) 51,318 27,609 n.a. n.a. 17,571 6,138 70 Other real estate owned 25,988 15,499 n.a. n.a. 8,301 2,188 71 Investments in unconsolidated subsidiaries and associated companies 3,349 2,900 n.a. n.a. 399 50 72 Customers' liability on acceptances outstanding 17,061 16,749 n.a. n.a. 292 20 73 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs n.a. n.a. n.a. 45,706 n.a. n.a. 74 Intangible assets 12,338 7,331 n.a. n.a. 4,598 409 75 Other assets 119,701 86,054 n.a. n.a. 26,664 6,983 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A71 4.20—Continued Banks with domestic Banks with foreign offices offices only Item TToottaall Total Foreign Domestic Over 100 Under 100 76 Total liabilities, limited-life preferred stock, and equity capital 3,415,788 1,918,010 n.a. n.a. 1,125,806 77 Total liabilities7 3,186,801 1,808,439 429,474 1,449,156 1,040,219 78 Limited-life preferred stock 5 0 n.a. n.a. 3 79 Total deposits 2,651,134 1,390,720 301,803 1,088,917 930,939 80 Individuals, partnerships, and corporations n a. n a. 179,828 1,003,020 868,200 81 U.S. government n.a. n a. n.a. 4,615 1,951 82 States and political subdivisions in the United States n.a. n a. n. a. 37,355 43,210 83 Commercial banks in the United States n.a. n a. n.a. 22,749 8,032 84 Other depository institutions in the United States n.a. n.a. n.a. 3,972 3,409 85 Banks in foreign countries n.a. n.a. n a. 6,444 114 86 Foreign governments and official institutions n. a. 23,254 22,211 1,043 48 87 Certified and official checks 18,908 10,952 1,232 9,720 5,975 88 Mother8 98,532 n.a. n.a. 89 Total transaction accounts 340,613 241,737 90 Individuals, partnerships, and corporations 287,831 213,610 91 U.S. government 3,445 1,692 92 States and political subdivisions in the United States 10,977 13,071 93 Commercial banks in the United States 18,926 6,054 94 Other depository institutions in the United States 2,852 1,231 95 Banks in foreign countries 5,955 88 96 Foreign governments and official institutions 908 16 97 Certified and official checks 9,720 5,975 98 M other n.a. n.a. 99 Demand deposits (included in total transaction accounts) 252,530 141,273 100 Individuals, partnerships, and corporations 203,237 120,898 101 U.S. government 3,402 1,626 102 States and political subdivisions in the United States 7,637 5,408 103 Commercial banks in the United States 18,926 6,052 104 Other depository institutions in the United States n a. n.a. n.a. 2,752 1,209 105 Banks in foreign countries 5,951 88 106 Foreign governments and official institutions 907 16 107 Certified and official checks 9,720 5,975 108 All other n.a. n.a. 109 Total nontransaction accounts 748,304 689,201 110 Individuals, partnerships, a,* corporations 715,190 654,590 111 U.S. government 1,169 258 112 States and political subdivisions in the United States 26,378 30,138 113 Commercial banks in the United States 3,823 1,978 114 U.S. branches and agencies of foreign banks 267 191 115 Other commercial banks in the United States 3,555 1,787 116 Other depository institutions in the United States 1,120 2,178 117 Banks in foreign countries 489 26 118 Foreign branches of other U.S. banks 17 119 Other banks in foreign countries 487 9 120 Foreign governments and official institutions 136 33 121 M other n.a. n.a. 122 Federal funds purchased and securities sold under agreements to repurchase.. 241,689 180,540 788 179,751 58,063 123 Federal funds purchased 154,372 122,514 n.a. n.a. 30,637 124 Securities sold under agreements to repurchase 87,317 58,026 n. a. n.a. 27,427 125 Demand notes issued to the U.S. Treasury n.a. n.a. n.a. 28,012 4,463 126 Other borrowed money 120,286 91,226 36,750 54,476 27,887 127 Banks liability on acceptances executed and outstanding 17,187 16,875 3,461 13,414 292 128 Notes and debentures subordinated to deposits 24,309 22,844 n. a. n.a. 1,330 129 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs... n.a. n.a. n.a. 24,485 n.a. 130 All other liabilities. 99,357 78,222 n.a. n.a. 17,245 131 Total equity capital9 228,981 109,572 n. a. n.a. 85,584 MEMO 132 Holdings of commercial paper included in total loans, gross 718 340 377 1,892 133 Total individual retirement accounts (IRA) and Keogh plan accounts 65,720 61,220 134 Total brokered deposits 43,960 19,985 135 Total brokered retail deposits 28,404 16,347 136 Issued in denominations of $100,000 or less 2,880 5,176 137 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 25,523 11,171 Savings deposits 138 Money market deposit accounts (MMDAs) 216,720 150,711 139 Other savings deposits (excluding MMDAs) 100,386 92,843 140 Total time deposits of less than $100,000 260,779 330 141 Time certificates of deposit of $100,000 or more n.a. n.a. n. a. 144,263 112,452 142 Open-account time deposits of $100,000 or more 26,156 3,654 143 All NOW accounts (including Super NOW) 87,299 98,699 144 Total time and savings deposits 836,387 789,666 Quarterly averages 145 Total loans 931,601 686,217 146 Obligations (other than securities) of states and political subdivisions in the United States 17,476 11,527 147 Transaction accounts in domestic offices (NOW accounts, ATS accounts, and telephone and preauthorized transfer accounts) 85,150 98,772 Nontransaction accounts in domestic offices 148 Money market deposit accounts (MMDAs) 215,176 148,320 149 Other savings deposits 97,947 91,020 150 Time certificates of deposit of $100,000 or more 151,098 114,371 151 All other time deposits 285,922 332,732 152 Number of banks 12,050 225 n.a. n.a. 2,754 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • February 1992 4.21 DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or more or with foreign offices1,2,6 Consolidated Report of Condition, September 30, 1992 Millions of dollars Members NNoonn-- Item TToottaall mmeemmbbeerrss Total National State 1 Total assets6 2,684,533 2,090,125 1,668,214 421,911 594,408 2 Cash and balances due from depository institutions 186,770 154,164 127,125 27,039 32,606 3 Cash items in process of collection and unposted debits 100,274 89,677 73,662 16,015 10,597 4 Currency and coin 26,013 21,246 17,697 3,549 4,767 5 Balances due from depository institutions in the United States 29,686 19,263 16,136 3,127 10,423 6 Balances due from banks in foreign countries and foreign central banks 6,058 4,310 3,469 841 1,748 7 Balances due from Federal Reserve Banks 24,739 19,666 16,160 3,506 5,072 8 Total securities, loans and lease financing receivables, (net of unearned income) 2,300,159 1,767,082 1,428,983 338,099 533,077 9 Total securities, book value 508,674 378,713 292,214 86,499 129,961 10 U.S. Treasury securities 143,131 100,860 80,849 20,011 42,271 11 U.S. government agency and corporation obligations 245,838 192,074 148,767 43,307 53,764 12 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 129,440 106,085 84,746 21,339 23,354 13 All other 116,399 85,989 64,021 21,967 30,410 14 Securities issued by states and political subdivisions in the United States 57,928 42,481 31,687 10,794 15,447 15 Other domestic debt securities 51,151 36,875 25,663 11,212 14,276 16 All holdings of private certificates of participation in pools of residential mortgages .. 3,247 2,604 2,217 387 643 17 All other 47,904 34,271 23,446 10,825 13,632 18 Foreign debt securities 1,725 1,218 8% 322 506 19 Equity securities 8,902 5,205 4,353 852 3,697 20 Marketable 4,462 1,785 1,572 213 2,676 21 Investments in mutual funds 2,545 1,350 1,288 61 1,195 22 Other 2,095 467 313 154 1,628 23 Less: Net unrealized loss 178 32 29 3 146 24 Other equity securities 4,441 3,419 2,781 639 1,021 25 Federal funds sold and securities purchased under agreements to resell10 140,089 113,965 90,458 23,507 26,124 26 Federal funds sold 48,459 30,842 27,344 3,498 17,617 27 Securities purchased under agreements to resell 5,575 2,813 2,544 269 2,762 28 Total loans and lease financing receivables, gross 1,660,043 1,280,586 1,051,349 229,237 379,457 29 LESS: Unearned income on loans 8,647 6,182 5,038 1,144 2,465 30 Total loans and leases (net of unearned income) 1,651,3% 1,274,404 1,046,311 228,093 376,991 Total loans, gross, by category 31 Loans secured by real estate 715,208 532,882 450,109 82,773 182,326 32 Construction and land development 102,576 79,458 65,481 13,978 23,117 33 Farmland 8,212 5,130 4,428 701 3,082 34 1-4 family residential properties 363,633 271,957 230,871 41,085 91,676 35 Revolving, open-end and extended under lines of credit 65,514 50,194 42,085 8,109 15,320 36 All other loans 298,118 221,763 188,787 32,976 76,356 37 Multifamily (5 or more) residential properties 20,143 14,566 12,237 2,329 5,576 38 Nonfarm nonresidential properties 220,645 161,771 137,092 24,679 58,875 39 Loans to commercial banks in the United States 29,081 20,105 16,347 3,758 8,975 40 Loans to other depository institutions in the United States 1,378 1,216 1,133 83 162 41 Loans to banks in foreign countries 2,697 2,591 1,211 1,381 105 42 Loans to finance agricultural production and other loans to farmers 15,449 10,995 9,946 1,049 4,454 43 Commercial and industrial loans 436,578 356,861 283,315 73,546 79,717 44 To U.S. addressees (domicile) 434,426 355,008 281,979 73,029 79,418 45 To non-U.S. addressees (domicile) 2,152 1,853 1,336 517 299 46 Acceptances of other banks" 1,146 711 524 186 435 47 Of U.S. banks 591 415 264 151 176 48 Of foreign banks 155 95 94 2 60 49 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 330,022 241,831 204,925 36,907 88,191 50 Credit cards and related plans 77,307 42,288 39,780 2,508 35,019 51 Other (includes single payment and installment) 111,945 68,270 57,759 10,512 43,675 52 Loans to foreign governments and official institutions 1,117 1,071 953 118 46 53 Obligations (other than securities) of states and political subdivisions in the United States 28,846 23,853 17,841 6,012 4,994 54 Taxable 1,265 1,043 779 264 222 55 Tax-exempt 27,581 22,810 17,062 5,748 4,772 56 Other loans 67,282 62,203 43,503 18,700 5,079 57 Loans for purchasing and carrying securities 14,577 13,392 7,043 6,349 1,186 58 All other loans 52,705 48,811 36,460 12,352 3,893 59 Lease financing receivables 31,238 26,267 21,543 4,724 4,972 60 Customers' liability on acceptances outstanding 13,447 12,188 9,089 3,099 1,260 61 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs 45,706 40,457 17,185 23,272 5,249 62 Remaining assets 184,156 156,692 103,018 53,674 27,465 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A73 4.21—Continued Members Item Total Total National State 63 Total liabilities and equity capital 2,684,533 2,090,125 1,668,214 421,911 64 Total liabilities4 2,489,374 1,942,879 1,552,456 390,423 65 Total deposits 2,019,856 1,551,298 1,269,817 281,481 66 Individuals, partnerships, and corporations 1,871,220 1,434,133 1,177,321 256,812 67 U.S. government 6,565 5,812 4,957 855 68 States and political subdivisions in the United States 80,564 59,023 48,722 10,301 69 Commercial) banks in the United States 30,781 27,486 21,583 5,904 70 Other depository institutions in the United States 7,381 5,253 4,214 1,039 71 Banks in foreign countries 6,558 6,013 3,569 2,445 72 Foreign governments and official institutions 1,092 979 595 384 73 Certified and official checks 15,694 12,598 8,856 3,742 74 Total transaction accounts 582,351 466,705 376,967 89,738 75 Individuals, partnerships, and corporations 501,441 397,655 324,222 73,433 76 U.S. government 5,138 4,446 3,732 714 77 States and political subdivisions in the United States 24,048 18,882 15,471 3,411 78 Commercial banks in the United States 24,980 23,118 18,110 5,008 79 Other depository institutions in the United States 4,083 3,352 2,650 702 80 Banks in foreign countries 6,044 5,772 3,400 2,371 81 Foreign governments and official institutions 923 882 526 356 82 Certified and official checks 15,694 12,598 8,856 3,742 83 Demand deposits (included in total transaction accounts) 393,803 323,522 257,129 66,392 84 Individuals, partnerships, and corporations 324,134 262,770 211,164 51,606 85 U.S. government 5,028 4,370 3,667 703 86 States and political subdivisions in the United States 13,045 10,774 8,868 1,906 87 Commercial banks in the United States 24,978 23,118 18,110 5,008 88 Other depository institutions in the United States 3,962 3,238 2,538 700 89 Banks in foreign countries 6,039 5,771 3,400 2,371 90 Foreign governments and official institutions 922 882 526 356 91 Certified and official checks 15,694 12,598 8,856 3,742 92 Total nontransaction accounts 1,437,505 1,084,593 892,850 191,744 93 Individuals, partnerships, and corporations 1,369,780 1,036,479 853,100 183,379 94 U.S. government 1,427 1,366 1,225 141 95 States and political subdivisions in the United States 56,516 40,140 33,250 6,890 96 Commercial banks in the United States 5,801 4,368 3,473 896 97 U.S. branches and agencies of foreign banks 458 210 76 134 98 Other commercial banks in the United States 5,343 4,159 3,397 762 99 Other depository institutions in the United States 3,299 1,902 1,564 337 100 Banks in foreign countries 515 242 169 73 101 Foreign branches of other U.S. banks 18 13 10 3 102 Other banks in foreign countries 496 229 158 71 103 Foreign governments and official institutions 168 97 69 28 104 Federal funds purchased and securities sold under agreements to repurchase12 237,815 204,357 144,445 59,912 105 Federal funds purchased 30,637 21,864 18,207 3,657 106 Securities sold under agreements to repurchase 27,427 13,841 11,722 2,119 107 Demand notes issued to the U.S. Treasury 32,474 30,072 20,408 9,665 108 Other borrowed money 82,363 58,691 45,121 13,569 109 Banks liability on acceptances executed and outstanding 13,706 12,446 9,316 3,129 110 Notes and debentures subordinated to deposits 1,330 921 845 76 111 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs 24,485 18,195 16,182 2,013 112 Remaining liabilities 101,830 85,094 62,503 22,591 113 Total equity capital' 195,159 147,246 115,758 31,488 MEMO 114 Holdings of commercial paper included in total loans, gross 2,269 905 887 18 115 Total individual retirement accounts (IRA) and Keogh plan accounts 126,940 98,176 81,043 17,133 116 Total brokered deposits 63,945 46,992 40,066 6,926 117 Total brokered retail deposits 44,751 31,777 27,281 4,4% 118 Issued in denominations of $100,000 or less 8,057 2,942 2,527 415 119 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 36,694 28,835 24,754 4,081 Savings deposits 120 Money market deposit accounts (MMDAs) 367,431 290,217 239,003 51,215 121 Other savings accounts 193,229 149,390 111,803 37,587 122 Total time deposits of less than $100,000 590,320 436,113 368,131 67,981 123 Time certificates of deposit of $100,000 or more 256,715 184,606 158,818 25,788 124 Open-account time deposits of $100,000 or more 29,810 24,267 15,094 9,173 125 All NOW accounts (including Super NOW accounts) 185,997 141,540 118,358 23,182 126 Total time and savings deposits 1,626,053 1,227,777 1,012,687 215,089 Quarterly averages 127 Total loans 1,617,818 1,243,513 1,020,691 222,822 128 Obligations (other than securities) of states and political subdivisions in the United States ... 29,003 24,106 17,811 6,295 129 Transaction accounts (NOW accounts, ATS accounts, and telephone preauthorized transfer accounts) 183,923 139,271 116,152 23,119 Nontransaction accounts 130 Money market deposit accounts (MMDAs) 363,496 286,901 234,912 51,989 131 Other savings deposits 188,967 145,758 109,107 36,651 132 Time certificates of deposits of $100,000 or more 265,469 193,208 165,456 27,752 133 All other time deposits 618,653 458,012 379,520 78,493 134 Number of banks 2,979 1,614 1,355 259 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • February 1992 4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities1-2-6 Consolidated Report of Condition, September 30, 1992 Millions of dollars Members NNoonn-- TToottaall mmeemmbbeerrss Total National State 1 Total assets6 3,056,504 2,236,144 1,783,337 452,807 820,361 2 Cash and balances due from depository institutions 210,456 163,687 134,788 28,899 46,769 3 Currency and coin 29,383 22,590 18,769 3,821 6,793 4 Noninterest-bearing balances due from commercial banks 30,116 16,844 13,680 3,164 13,272 5 Other 150,957 124,252 102,339 21,913 26,705 6 Total securities, loans, and lease financing receivables (net of unearned income) 2,635,855 1,898,639 1,532,507 366,132 737,217 7 Total securities, book value 627,585 425,591 330,336 95,255 201,994 8 U.S. Treasury securities and U.S. government agency and corporation obligations 483,234 330,591 260,361 70,230 152,643 9 Securities issued by states and political subdivisions in the United States 73,576 48,135 36,145 11,990 25,441 10 Other debt securities 60,537 41,019 28,949 12,069 19,518 11 All holdings of private certificates of participation in pools of residential mortgages .. 3,476 2,700 2,287 414 775 12 All other 57,061 38,318 26,662 11,656 18,743 13 Equity securities 10,239 5,847 4,881 966 4,392 14 Marketable 5,458 2,186 1,921 265 3,272 15 Investments in mutual funds 3,443 1,744 1,634 110 1,699 16 Other 2,249 494 333 161 1,755 17 Less: Net unrealized loss 235 52 46 6 183 18 Other equity securities 4,781 3,661 2,960 701 1,120 19 Federal funds sold and securities purchased under agreements to resell1 160,700 123,079 97,640 25,439 37,621 20 Federal funds sold 68,818 39,859 34,445 5,413 28,959 21 Securities purchased under agreements to resell 5,828 2,910 2,625 285 2,918 22 Total loans and lease financing receivables, gross 1,857,964 1,356,856 1,110,114 246,742 501,108 23 LESS: Unearned income on loans 10,394 6,887 5,584 1,304 3,506 24 Total loans and leases (net of unearned income) 1,847,570 1,349,969 1,104,530 245,438 497,601 Total loans, gross, by category 25 Loans secured by real estate 817,433 571,881 480,051 91,830 245,552 26 Construction and land development 109,076 82,187 67,458 14,729 26,889 27 Farmland 18,320 8,333 7,011 1,322 9,988 28 1-4 family residential properties 420,410 293,763 247,520 46,244 126,647 29 Revolving, open-end loans, and extended under lines of credit 68,858 51,687 43,158 8,529 17,171 30 All other loans 351,552 242,076 204,362 37,715 109,476 31 Multifamily (5 or more) residential properties 22,145 15,312 12,816 2,496 6,833 32 Nonfarm nonresidential properties 247,482 . 172,287 145,247 27,040 75,195 33 Loans to depository institutions 33,431 24,083 18,823 5,259 9,349 34 Loans to finance agricultural production and other loans to farmers 35,557 17,790 15,391 2,398 17,767 35 Commercial and industrial loans 471,715 371,235 294,009 77,225 100,480 36 Acceptances of other banks 1,611 892 681 211 719 37 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 366,202 256,292 216,322 39,970 109,910 38 Credit cards and related plans 79,877 43,597 40,974 2,623 36,280 39 Other (includes single payment installment) 145,554 81,421 67,962 13,459 64,133 40 Obligations (other than securities) of states and political subdivisions in the United States 30,304 24,387 18,287 6,100 5,917 41 Taxable 1,330 1,079 812 267 250 42 Tax-exempt 28,974 23,307 17,475 5,832 5,667 43 All other loans 69,975 63,870 44,870 19,001 6,104 44 Lease financing receivables 31,736 26,427 21,679 4,748 5,309 45 Customers' liability on acceptances outstanding 13,467 12,204 9,105 3,099 1,263 46 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs 45,706 40,457 17,185 23,272 5,249 47 Remaining assets 196,726 161,614 106,937 54,677 35,112 48 Total liabilities and equity capital 3,056,504 2,236,144 1,783,337 452,807 820,361 49 Total liabilities4 2,827,518 2,075,974 1,657,510 418,463 751,544 50 Total deposits 2,349,331 1,680,520 1,371,800 308,719 668,812 51 Individuals, partnerships, and corporations 2,175,457 1,553,737 1,271,753 281,984 621,720 52 U.S. government 7,218 6,029 5,135 894 1,188 53 States and political subdivisions in the United States 100,849 66,386 54,676 11,710 34,462 54 Commercial banks in the United States 31,957 28,235 22,016 6,219 3,722 55 Other depository institutions in the United States 8,459 5,634 4,495 1,139 2,825 56 Certified and official checks 17,676 13,455 9,524 3,931 4,220 57 Allother 7,717 7,042 4,200 2,842 675 58 Total transaction accounts 667,828 501,639 404,952 96,687 166,189 59 Individuals, partnerships, and corporations 577,303 428,662 349,156 79,506 148,641 60 U.S. government 5,695 4,635 3,892 743 1,060 61 States and political subdivisions in the United States 30,300 21,118 17,318 3,799 9,182 62 Commercial banks in the United States 25,580 23,655 18,400 5,255 1,925 63 Other depository institutions in the United States 4,291 3,447 2,727 720 843 64 Certified and official checks 17,676 13,455 9,524 3,931 4,220 65 All other 6,984 6,668 3,934 2,733 317 66 Demand deposits (included in total transaction accounts) 436,283 341,459 271,275 70,184 94,823 67 Individuals, partnerships, and corporations 361,550 278,396 223,598 54,798 83,154 68 U.S. government 5,571 4,556 3,824 732 1,015 69 States and political subdivisions in the United States 14,769 11,400 9,382 2,018 3,369 70 Commercial banks in the United States 25,576 23,654 18,399 5,255 1,922 71 Other depository institutions in the United States 4,163 3,332 2,613 719 831 72 Certified and official checks 17,676 13,455 9,524 3,931 4,220 73 Allother 6,978 6,666 3,934 2,732 312 74 Total nontransaction accounts 1,681,504 1,178,881 966,849 212,032 502,623 75 Individuals, partnerships, and corporations 1,598,154 1,125,076 922,597 202,478 473,079 76 U.S. government 1,522 1,394 1,244 151 128 77 States and political subdivisions in the United States 70,549 45,269 37,358 7,911 25,280 78 Commercial banks in the United States 6,377 4,581 3,616 964 1,797 79 Other depository institutions in the United States 4,169 2,187 1,768 419 1,982 80 Allother 732 374 266 109 358 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A75 4.22—Continued Members NNoonn-- Item TToottaall mmeemmbbeerrss Total National State 81 Federal funds purchased and securities sold under agreements to repurchase 240,901 205,794 145,481 60,313 35,107 82 Federal funds purchased 31,858 22,501 18,612 3,888 9,358 83 Securities sold under agreements to repurchase 29,291 14,641 12,353 2,289 14,650 84 Demand notes issued to the U.S. Treasury 32,839 30,216 20,526 9,690 2,622 85 Other borrowed money 83,536 59,314 45,665 13,649 24,223 86 Banks liability on acceptances executed and outstanding 13,726 12,462 9,333 3,130 1,263 87 Notes and debentures subordinated to deposits 1,465 980 897 83 486 88 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs 24,485 18,195 16,182 2,013 6,290 89 Remaining liabilities 105,720 86,688 63,809 22,879 19,032 90 Total equity capital9 228,986 160,170 125,826 34,343 68,816 MEMO 91 Assets held in trading accounts 34,647 33,560 18,865 14,695 1,087 92 U.S. Treasury securities 17,300 17,200 7,539 9,661 100 93 U.S. government agency corporation obligations 3,615 3,503 2,968 535 112 94 Securities issued by states and political subdivisions in the United States 1,162 1,118 736 382 44 95 Other bonds, notes, and debentures 550 471 136 335 79 96 Certificates of deposit 981 967 616 350 15 97 Commercial paper 160 160 160 0 0 98 Bankers acceptances 3,315 3,229 2,043 1,186 86 99 Other 6,866 6,655 4,466 2,189 210 100 Total individual retirement accounts (IRA) and Keogh plan accounts 146,320 105,535 86,882 18,653 40,785 101 Total brokered deposits 64,772 47,188 40,186 7,002 17,584 102 Total brokered retail deposits 45,524 31,965 27,398 4,567 13,559 103 Issued in denominations of $100,000 or less 8,660 3,104 2,628 476 5,556 104 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 36,865 28,861 24,770 4,091 8,004 Savings deposits 105 Money market deposit accounts (MMDAs) 405,928 306,613 251,916 54,697 99,315 106 Other savings deposits 223,480 161,251 121,111 40,140 62,229 107 Total time deposits of less than $100,000 730,156 487,943 408,792 79,151 242,213 108 Time certificates of deposit of $100,000 or more 291,052 198,442 169,639 28,803 92,611 109 Open-account time deposits of $100,000 or more 30,887 24,632 15,391 9,241 6,255 110 All NOW accounts (including Super NOW) 227,783 158,134 131,908 26,226 69,649 111 Total time and savings deposits 1,913,049 1,339,060 1,100,525 238,535 573,988 Quarterly averages 112 Total loans 1,811,610 1,318,288 1,078,293 239,995 493,323 113 Transaction accounts (NOW accounts, ATS accounts, and telephone and preauthorized transfer accounts) 225,999 155,914 129,701 26,213 70,085 Nontransaction accounts 114 Money market deposit accounts (MMDAs) 401,194 302,953 247,581 55,372 98,241 115 Other savings deposits 218,530 157,339 118,216 39,123 61,191 116 Time certificates of deposit of $100,000 or more 299,695 206,969 176,217 30,752 92,726 117 All other time deposits 759,313 510,197 420,466 89,731 249,117 118 Number of banks 12,050 4,858 3,875 983 7,192 1. Effective Mar. 31,1984, the report of condition was substantially revised for refers to those respondents whose assets, as of June 30 of the previous calendar commercial banks. Some of the changes are as follows: (1) Previously, banks with year, were less than $100 million. (These respondents filed the FFIEC 034 call international banking facilities (IBFs) that had no other foreign offices were report.) considered domestic reporters. Beginning with the Mar. 31, 1984 call report these 6. Since the domestic portion of allowances for loan and lease losses and banks are considered foreign and domestic reporters and must file the foreign and allocated transfer risk reserve are not reported for banks with foreign offices, the domestic report of condition; (2) banks with assets greater than $1 billion have components of total assets (domestic) will not add to the actual total (domestic). additional items reported; (3) the domestic office detail for banks with foreign 7. Since the foreign portion of demand notes issued to the U.S. Treasury is not offices has been reduced considerably; and (4) banks with assets under $25 million reported for banks with foreign offices, the components of total liabilities (foreign) have been excused from reporting certain detail items. will not add to the actual total (foreign). 2. The "n.a." for some of the items is used to indicate the lesser detail available 8. The definition of 'all other' varies by report form and therefore by column in from banks without foreign offices, the inapplicability of certain items to banks this table. See the instructions for more detail. that have only domestic offices and/or the absence of detail on a fully consolidated 9. Equity capital is not allocated between the domestic and foreign offices of basis for banks with foreign offices. banks with foreign offices. 3. All transactions between domestic and foreign offices of a bank are reported 10. Only the domestic portion of federal funds sold and securities purchased in "net due from" and "net due to." All other lines represent transactions with under agreements to resell are reported here, therefore, the components will not parties other than the domestic and foreign offices of each bank. Since these add to totals for this item. intraoffice transactions are nullified by consolidation, total assets and total 11. "Acceptances of other banks" is not reported by domestic respondents less liabilities for the entire bank may not equal the sum of assets and liabilities than $300 million in total assets, therefore the components will not add to totals for respectively, of the domestic and foreign offices. this item. 4. Foreign offices include branches in foreign countries, Puerto Rico, and in 12. Only the domestic portion of federal funds purchased and securities sold U.S. territories and possessions; subsidiaries in foreign countries; all offices of are reported here, therefore the components will not add to totals for this item. Edge act and agreement corporations wherever located and IBFs. 13. Components of assets held in trading accounts are only reported for banks 5. The 'over 100' column refers to those respondents whose assets, as of June with total assets of $1 billion or more; therefore the components will not add to the 30 of the previous calendar year, were equal to or exceeded $100 million. (These totals for this item. respondents file the FFIEC 032 or FFIEC 033 call report.) The 'under 100' column Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Special Tables • February 1992 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 5-9, 19911 A. Commercial and Industrial Loans Weighted Loan rate (percent) Loans Loans Amount of Average average secured made Partici- Characteristic ( o t f h l o d o u o a s l n l a a s n r d s) s ( o t f h o d s u o iz s ll e a a n r d s) s maturity2 W av e e ig r h ag te e d Standard colla b t y e ral co u m m n e d m n e t r i t - (p p l e o a r a t c i n e o s n n t ) Days effective3 (percent) (percent) ALL BANKS 1 Overnight6 7,132,014 5,339 6.76 59.2 2 One month and under (excluding overnight) 4,755,173 556 15 7.16 31.8 85.5 4.5 3 Fixed rate 3,345,085 708 14 6.94 26.2 86.9 4.1 4 Floating rate 1,410,088 369 17 7.68 45.3 82.4 5.2 5 Over one month and under a year . 9,564,387 148 130 8.28 52.7 75.9 11.0 6 Fixed rate 4,727,065 157 93 7.67 37.9 67.5 9.1 7 Floating rate 4,837,322 140 166 67.2 84.0 12.9 8 Demand7 12,900,100 246 8.29 60.2 77.2 13.0 9 Fixed rate 3,425,965 728 7.37 31.0 83.1 29.7 10 Floating rate 9,474,133 199 8.63 70.8 75.1 7.0 11 Total short term 34,351,660 271 7.82 44.4 74.3 8.9 12 Fixed rate (thousands of dollars) .. 18,629,150 455 32 7.13 25.0 70.7 9.0 13 1-99 423,305 12 124 11.20 73.0 32.2 .5 14 100-499 447,685 207 129 9.17 70.7 54.0 3.2 15 500-999 342,370 679 59 7.89 40.8 83.4 10.5 16 1,000-4,999 3,833,407 2,376 36 7.27 33.8 75.3 9.4 17 5,000-9,999 3,625,025 6,752 27 7.16 21.4 73.6 8.2 18 10,000 and over 9,957,370 19,379 25 6.78 18.3 69.8 9.8 19 Floating rate (thousands of dollars) 15,722,510 183 132 8.62 67.4 78.5 8.7 20 1-99 1,641,747 25 166 10.16 82.4 83.2 1.8 21 100-499 2,933,890 197 177 9.65 78.6 85.8 7.7 22 500-999 1,485,031 661 177 9.48 68.0 87.5 9.5 23 1,000-4,999 3,650,884 2,004 134 8.72 60.8 88.6 8.4 24 5,000-9,999 1,312,643 6,678 97 8.16 49.4 78.2 6.2 25 10,000 and over 4,698,315 20,918 89 7.22 65.1 61.7 12.2 Months 26 Total long term 3,687,750 178 9.13 64.2 67.5 27 Fixed rate (thousands of dollars) .. 1,329,657 125 8.53 51.2 58.3 5.7 28 1-99 123,590 13 11.26 83.4 18.9 .4 29 100-499 189,319 202 10.28 74.0 57.9 7.8 30 500-999 107,574 650 9.03 84.8 31.4 .0 31 1,000 and over 909,174 6,717 7.74 38.0 66.9 6.7 32 Floating rate (thousands of dollars) 2,358,093 233 9.47 71.6 72.8 10.8 33 1-99 195,638 29 10.37 84.7 43.9 3.4 34 100-499 504,873 204 9.88 78.6 65.9 12.5 35 500-999 279,885 668 9.86 80.0 66.9 13.2 36 1,000 and over 1,377,697 3,178 9.12 65.5 80.6 10.7 Loan rate (percent) Days Effective3 Nominal8 LOANS MADE BELOW PRIME10 37 Overnight6 6,897,561 6,586 6.67 6.45 12.2 59.0 38 One month and under (excluding overnight) 4,179,582 3,375 13 6.79 6.58 26.9 86.4 3.8 39 Over one month and under a year 5,780,243 570 101 7.19 6.98 39.1 77.2 13.5 40 Demand7 5,639,330 2,482 6.60 6.49 43.0 60.7 18.2 41 Total short term 22,496,700 1,530 6.81 6.62 29.6 69.2 9.0 42 Fixed rate 16,503,520 2,038 6.80 6.61 20.5 71.1 9.7 43 Floating rate 5,993,195 907 6.84 6.66 54.5 64.1 7.0 Months 44 Total long term 1,134,473 532 40 7.30 7.13 36.0 12.4 45 Fixed rate 783,127 573 7.35 7.21 27.2 59.1 6.1 46 Floating rate .. 351,346 459 7.18 6.97 55.6 85.8 26.4 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets All 4.23—Continued A.—Continued WWeeiigghhtteedd Loan rate (percent) LLooaannss Loans Characteristic ( AA o t f h mm o l d o oo u o a uu s l n nn a la s n tt r d s oo ) s ff ( o t AA f h o vv d s u ee o i rr s z ll a aa e a n gg r ee d s ) s mm sv aa D c ttuu r a d rr y ii ^ s tt yy c 22 WW e a f v f ee e e ii c gg r t hh a i g tt v ee e e dd 3 St e a r n r d o a r r 4 d c ( s p o e l e l c r a ho u c t vy r e e e r n d a t) l ( c p o u mm m e m n r aa e c d m dd n e e n ee t i r t t - ) (p PP pp l e aa o aa r rr a tt c tt ii n e ii oo cc s n nn ii -- t ) LARGE BANKS 1 Overnight6 5,272,413 7,638 * 6.80 .25 8.9 52.8 1.4 2 One month and under (excluding overnight) 3,706,097 3,747 14 6.93 .17 27.8 85.4 4.3 3 Fixed rate 2,649,922 6,099 13' 6.87 .18 24.8 86.2 4.2 4 Floating rate 1,056,175 1,904 15 7.08 .24 35.6 83.5 4.4 5 Over one month and under a year . 5,660,339 1,069 109 7.68 .14 46.5 80.5 11.9 6 Fixed rate 3,356,690 2,816 81 7.25 .17 27.9 73.1 7.0 7 Floating rate 2,303,649 561 150 8.31 .18 73.6 91.4 19.2 8 Demand7 8,410,643 483 * 7.95 .13 57.0 68.2 17.8 9 Fixed rate 2,933,711 1,437 * 7.31 .16 27.7 81.7 33.6 10 Floating rate 5,476,932 357 * 8.28 .18 72.7 60.9 9.3 11 Total short term 23,049,493 946 46 7.45 .13 38.7 70.5 10.4 12 Fixed rate (thousands of dollars) .. 14,211,768 3,263 28 7.03 .16 20.2 69.8 9.9 13 1-99 40,303 29 146 9.53 .19 62.3 61.6 1.2 14 100-499 168,664 230 76 8.56 .21 56.5 77.2 4.7 15 500-999 225,659 674 59 8.03 .07 44.1 86.6 7.0 16 1,000-4,999 2,374,528 2,286 35 7.38 .10 30.9 78.2 10.3 17 5,000-9,999 2,817,956 6,848 25 7.12 .12 17.0 71.0 9.4 18 10,000 and over 8,584,658 20,079 26 6.83 .11 16.8 66.5 10.2 19 Floating rate (thousands of dollars) 8,837,725 442 108 8.15 .19 68.5 71.6 11.3 20 1-99 387,553 30 175 9.87 .06 80.5 88.0 1.6 21 100-499 1,011,075 203 167 9.48 .07 74.3 89.2 5.2 22 500-999 562,390 664 162 9.24 .10 61.1 90.7 9.7 23 1,000-4,999 1,876,541 2,134 116 8.60 .20 59.9 83.4 12.4 24 5,000-9,999 965,049 6,860 79 7.89 .45 53.3 77.5 8.4 25 10,000 and over 4,035,115 22,934 91 7.34 .47 74.6 56.0 14.2 Months 26 Total long term 2,102,319 790 36 8.71 .14 58.4 77.2 11.2 27 Fixed rate (thousands of dollars) .. 681,597 1,574 39 7.90 .26 45.4 61.4 5.0 28 1-99 5,446 27 42 10.63 .28 82.9 35.7 .0 29 100-499 26,904 253 36 9.17 .22 74.8 73.0 2.9 30 500-999 33,637 631 39 7.80 .53 51.5 86.9 .0 31 1,000 and over 615,610 8,729 40 7.83 .34 43.4 59.7 5.4 32 Floating rate (thousands of dollars) 1,420,722 637 35 9.10 .13 64.7 84.8 14.2 33 1-99 32,290 40 38 9.92 .10 77.5 77.9 11.3 34 100-499 210,390 224 37 9.63 .09 72.7 82.5 15.8 35 500-999 141,383 668 38 9.43 .20 68.8 90.3 21.2 36 1,000 and over 1,036,660 3,723 34 8.92 .39 62.1 84.7 13.0 Loan rate (percent) DDaayyss Effective3 Nominal8 LOANS MADE BELOW PRIME10 37 Overnight6 5,146,852 7,954 * 6.72 6.51 7.8 53.1 .8 38 One month and under (excluding overnight) 3,488,662 7,160 13 6.78 6.56 26.3 85.3 3.8 39 Over one month and under a year 4,419,866 4,182 95 7.13 6.92 37.2 77.7 11.6 40 Demand7 4,414,070 4,579 * 6.57 6.46 48.6 49.8 22.0 41 Total short term 17,469,450 5,537 36 6.80 6.61 29.3 64.9 9.5 42 Fixed rate 13,002,272 5,728 26 6.82 6.64 17.1 68.2 10.2 43 Floating rate 4,467,178 5,047 86 6.72 6.55 64.7 55.5 7.4 Months 44 Total long term 764,119 3,019 33 7.16 7.04 33.2 64.5 13.6 45 Fixed rate 486,420 3,908 30 7.37 7.31 25.4 48.8 7.0 46 Floating rate .. 277,700 2,159 38 6.78 6.58 46.9 92.1 25.1 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Special Tables • February 1992 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 5-9, 1991'—Continued A. Commercial and Industrial Loans—Continued Weighted Loan rate (percent) Loans Loans Amount of Average average secured made Partici- Characteristic ( o t f h l o d o u o a s l n l a a s n r d s) s ( o t f h o d s u o iz s ll e a a n r d s) s maturity2 W av e e ig r h a t g e e d Standard coll b at y e ral co u m m n e d m n e t r i t - (p p l e o a r a t c i n e o s n n t ) Days effective3 (percent) (percent) OTHER BANKS 1 Overnight6 1,859,601 2,880 6.65 .34 24.5 77.4 2 One month and under (excluding overnight) 1,049,076 139 18 7.97 .25 46.0 85.9 5.1 3 Fixed rate 695,163 162 16 7.20 .39 31.7 89.5 3.8 4 Floating rate 353,913 108 22 9.49 .26 74.1 78.9 7.7 5 Over one month and under a year .. 3,904,048 66 159 9.16 .18 61.7 69.1 9.7 6 Fixed rate 1,370,375 47 120 8.70 .27 62.2 54.0 14.3 7 Floating rate 2,533,673 83 181 9.41 .18 61.4 77.3 7.2 8 Demand7 4,489,455 128 8.94 .22 66.3 94.1 4.1 9 Fixed rate 492,254 185 7.67 .38 50.6 91.2 6.7 10 Floating rate 3,997,201 124 9.10 .21 68.2 94.5 3.8 11 Total short term 11,302,180 110 8.55 .19 55.9 82.0 5.6 12 Fixed rate (thousands of dollars) ... 4,417,393 121 45 7.49 .29 40.3 73.6 6.3 13 1-99 383,001 11 123 11.37 .13 74.2 29.1 .4 14 100-499 279,021 196 145 9.55 .26 79.2 39.9 2.3 15 500-999 116,712 690 59 7.62 .31 34.6 77.4 17.1 16 1,000-4,999 1,458,879 2,540 37 7.09 .09 38.7 70.6 8.0 17 5,000-9,999 807,069 6,436 36 7.30 .38 36.7 82.8 3.8 18 10,000 and over 1,372,712 15,913 20 6.51 .13 27.1 90.2 7.3 19 Floating rate (thousands of dollars). 6,884,787 104 161 9.23 .20 66.0 87.4 5.3 20 1-99 1,254,194 23 165 10.25 .03 83.0 81.7 1.9 21 100-499 1,922,815 194 181 9.73 .06 80.9 84.1 9.1 22 500-999 922,641 660 184 9.63 .16 72.2 85.5 9.4 23 1,000-4,999 1,774,343 1,882 159 8.85 .34 61.9 94.0 4.3 24 5,000-9,999 347,594 6,220 127 8.92 .55 38.4 80.2 .0 25 10,000 and over 663,200 13,629 70 6.49 1.02 7.6 96.2 .0 26 Total long term 1,585,431 9.70 71.9 54.7 27 Fixed rate (thousands of dollars) ... 648,060 63 9.20 57.2 55.0 6.5 28 1-99 118,144 13 11.29 83.4 18.1 .4 29 100-499 162,415 196 10.47 73.8 55.4 8.6 30 500-999 73,937 659 9.60 100.0 6.1 .0 31 1,000 and over 293,565 4,529 7.55 26.8 81.9 9.3 32 Floating rate (thousands of dollars). 937,370 119 10.04 82.0 54.6 5.6 33 1-99 163,347 27 10.45 86.1 37.2 1.9 34 100-499 294,483 191 10.06 82.8 54.1 10.2 35 500-999 138,502 668 10.29 91.3 42.9 5.1 36 1,000 and over 341,038 2,199 9.74 75.6 68.0 3.7 Loan rate (percent) Days Effective3 Nominal8 LOANS MADE BELOW PRIME 37 Overnight6 1,750,710 4,373 6.50 25.1 76.4 1.2 38 One month and under (excluding overnight) 690,921 920 15 6.85 6.63 29.4 92.1 3.8 39 Over one month and under a year . 1,360,377 150 119 7.41 7.18 45.1 75.7 19.5 40 Demand7 1,225,260 937 6.74 6.61 23.0 99.9 4.5 41 Total short term 5,027,267 46 6.85 6.66 30.6 42 Fixed rate 3,501,250 601 27 6.72 6.51 33.1 81.8 7.9 43 Floating rate 1,526,017 267 135 7.17 7.00 24.9 89.3 6.0 Months 44 Total long term 370,353 7.58 7.32 41.6 73.3 9.9 45 Fixed rate 2%,707 239 7.30 7.04 30.0 76.1 4.6 46 Floating rate .. 73,646 116 8.70 8.43 88.6 62.2 31.2 For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A79 NOTES TO TABLE 4.23 1. As of Sept. 30, 1990, assets of most of the large banks were at least $7.0 rates other than the federal funds rate; foreign money market rates; and other base billion. For all insured banks, total assets averaged $275 million. rates not included in the foregoing classifications. 2. Average maturities are weighted by loan size and exclude demand loans. 6. Overnight loans mature on the following business day. 3. Effective (compounded) annual interest rates are calculated from the stated 7. Demand loans have no stated date of maturity. rate and other terms of the loans and weighted by loan size. 8. Nominal (not compounded) annual interest rates are calculated from the 4. The chances are about two out of three that the average rate shown would stated rate and other terms of the loans and weighted by loan size. differ by less than this amount from the average rate that would be found by a 9. The prime rate reported by each bank is weighted by the volume of loans complete survey of lending at all banks. extended and then averaged. 5. The most common base rate is that used to price the largest dollar volume of 10. The proportion of loans made at rates below the prime may vary substanloans. Base pricing rates include the prime rate (sometimes referred to as a bank's tially from the proportion of such loans outstanding in banks' portfolios. "basic" or "reference" rate); the federal funds rate; domestic money market Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • February 1992 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 19911 Millions of dollars All states New York California Illinois IItteemm in I T c B l o u F t d a ' i s l n g I o B n F ly 's in I T c B l o u F t d a ' i s l n g I o B n F ly 's in I c T B l o u F t d a ' i s l n g I o B n F ly 's in I c T B l o u F t d a ' i s l n g I o B n F ly 's 1 Total assets4 672,339 291,342 501,627 227,163 83,362 35,126 49,871 19,064 2 Claims on nonrelated parties 579,678 212,703 425,872 175,727 75,744 15,460 49,557 16,089 3 Cash and balances due from depository institutions 154,477 128,858 130,897 107,134 8,635 7,958 13,240 12,878 4 Cash items in process of collection and unposted debits 1,873 2 1,818 2 22 0 12 0 5 Currency and coin (U.S. and foreign) 25 n.a. 18 n.a. 2 n.a. 1 n.a. 6 Balances with depository institutions in United States .. 79,977 58,100 67,587 47,105 5,019 4,387 6,555 6,268 7 U.S. branches and agencies of other foreign banks (including their IBFs) 71,882 54,833 60,399 43,969 4,618 4,327 6,219 6,208 8 Other depository institutions in United States (including their IBFs) 8,095 3,268 7,188 3,136 401 60 336 60 9 Balances with banks in foreign countries and with foreign central banks 71,935 70,756 60,981 60,027 3,573 3,571 6,611 6,609 10 Foreign branches of U.S. banks 1,705 1,589 1,524 1,411 72 71 103 102 11 Other banks in foreign countries and foreign central banks 70,230 69,167 59,456 58,616 3,501 3,500 6,507 6,507 12 Balances with Federal Reserve Banks 667 n.a. 494 n.a. 19 n.a. 62 n.a. 13 Total securities and loans 348,304 72,140 231,359 58,572 59,704 6,696 31,940 2,509 14 Total securities, book value 56,334 15,267 50,854 13,950 3,493 838 1,510 428 15 U.S. Treasury 13,726 n.a. 13,548 n.a. 60 n.a. 55 n.a. 16 Obligations of U.S. government agencies and corporations 8,825 n.a. 8,410 n.a. 232 n.a. 95 n.a. 17 Other bonds, notes, debentures and corporate stock (including state and local securities) 33,782 15,267 28,896 13,950 3,201 838 1,360 428 18 Federal funds sold and securities purchased under agreements to resell 24,339 3,311 22,709 2,787 527 88 665 328 19 U.S. branches and agencies of other foreign banks 11,608 1,753 10,532 1,533 428 83 329 75 20 Commercial banks in United States 3,515 143 3,303 93 73 0 73 50 21 Other 9,216 1,414 8,874 1,160 26 5 263 203 22 Total loans, gross 292,143 56,905 180,627 44,651 56,248 5,860 3300,,443388 2,081 23 Less: Unearned income on loans 173 31 121 29 37 2 88 0 24 Equals: Loans, net 291,970 56,873 180,506 44,622 56,211 5,858 30,429 2,081 Total loans, gross, by category 25 Real estate loans 52,745 521 27,216 306 16,092 155 5,439 61 26 Loans to depository institutions 45,953 29,856 36,096 22,888 4,609 3,646 3,002 1,483 27 Commercial banks in United States (including IBFs) 23,887 11,037 18,790 8,107 3,058 2,161 1,854 723 28 U.S. branches and agencies of other foreign banks ... 20,219 9,841 15,748 6,961 2,922 2,131 1,389 708 29 Other commercial banks in United States 33,,666688 11,,119966 33,,004422 1,146 136 30 465 15 30 Other depository institutions in United States (including IBFs) 67 0 60 0 7 0 0 0 31 Banks in foreign countries 21,998 18,819 17,246 14,781 1,544 1,485 1,148 760 32 Foreign branches of U.S. banks 1,504 854 1,403 753 83 83 18 18 33 Other banks in foreign countries 20,494 17,965 15,843 14,028 1,461 1,401 1,130 742 34 Other financial institutions 12,183 767 9,865 664 908 51 994 41 35 Commercial and industrial loans 159,465 14,514 89,815 11,994 33,523 1,679 20,402 378 36 U.S. addressees (domicile) 138,624 368 73,926 228 30,800 111 19,791 13 37 Non-U.S. addressees (domicile) 20,841 14,145 15,889 11,765 2,724 1,568 611 364 38 Acceptances of other banks 1,249 16 841 13 210 0 121 0 39 U.S. banks 361 0 182 0 118 0 3 0 40 Foreign banks 888 16 659 13 92 0 118 0 41 Loans to foreign governments and official institutions (including foreign central banks) 12,125 10,908 9,437 8,489 406 328 122 119 42 Loans for purchasing or carrying securities (secured and unsecured) 5,023 4 4,607 4 415 0 0 0 43 All other loans 3,400 318 2,749 294 86 0 357 0 44 All other assets 52,558 8,394 40,907 7,234 6,878 717 3,712 374 45 Customers' liability on acceptances outstanding 22,682 n.a. 16,484 n.a. 4,726 n.a. 963 n.a. 46 U.S. addressees (domicile) 15,876 n.a. 10,621 n.a. 4,100 n.a. 930 n.a. 47 Non-U.S. addressees (domicile) 6,807 n.a. 5,863 n.a. 626 n.a. 33 n.a. 48 Other assets including other claims on nonrelated parties 29,876 8,394 24,423 7,234 2,152 717 2,748 374 49 Net due from related depository institutions5 92,662 78,639 75,755 51,436 77,,661177 1199,,666655 314 22,,997755 50 Net due from head office and other related depository institutions 92,662 n.a. 7755,,775555 n.a. 77,,661177 n.a. 314 n.a. 51 Net due from establishing entity, head offices, and other related depository institutions n.a. 78,639 n.a. 51,436 n.a. 19,665 n.a. 2,975 52 Total liabilities4 672,339 291,342 501,627 227,163 83,362 35,126 49,871 19,064 53 Liabilities to nonrelated parties 571,216 240,717 446,557 186,972 73,074 34,534 31,968 11,772 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A81 4.30—Continued Millions of dollars All states New York California Illinois ex I T c B l o u F t d a ' i s l n g I o B n F ly 's ex I T c B l o u F t d a ' i s l n g I o B n F ly 's ex I T c B l o u F t d a ' i s l n g I o B n F ly 's ex I T c B l o u F t d a ' i s l n g 54 Total deposits and credit balances 143,232 177,192 122,494 155,988 4,312 11,263 7,606 55 Individuals, partnerships, and corporations 98,909 16,068 81,389 9,233 3,459 1,235 6,786 56 U.S. addressees (domicile) 83,313 362 72,117 362 1,414 0 5,722 57 Non-U.S. addressees (domicile) 15,596 15,706 9,272 8,870 2,045 1,235 1,064 58 Commercial banks in United States (including IBFs). 32,678 54,764 30,320 49,943 598 3,062 665 59 U.S. branches and agencies of other foreign banks 10,374 48,204 10,119 44,211 82 2,523 148 60 Other commercial banks in United States 22,304 6,560 20,201 5,732 516 539 517 61 Banks in foreign countries 4,483 92,152 4,214 83,235 5 6,532 143 62 Foreign branches of U.S. banks 1,549 8,123 1,428 6,946 0 823 120 63 Other banks in foreign countries 2,934 84,029 2,786 76,289 5 5,709 23 64 Foreign governments and official institutions (including foreign central banks) 1,497 13,936 1,171 13,304 219 435 3 65 All other deposits and credit balances 5,238 273 5,033 273 4 0 1 66 Certified and official checks 426 367 n.a. 28 n.a. 67 Transaction accounts and credit balances (excluding IBFs) 7,837 6,473 275 405 68 Individuals, partnerships, and corporations 4,952 3,780 236 393 69 U.S. addressees (domicile) 3,573 2,860 191 388 70 Non-U.S. addressees (domicile) 1,379 920 45 5 71 Commercial banks in United States (including IBFs). 132 125 1 0 72 U.S. branches and agencies of other foreign banks 18 17 0 0 73 Other commercial banks in United States 114 108 1 0 74 Banks in foreign countries 875 796 5 2 75 Foreign branches of U.S. banks 10 10 0 0 76 Other banks in foreign countries 865 786 5 2 77 Foreign governments and official institutions (including foreign central banks) 400 368 2 1 78 All other deposits and credit balances 1,051 1,038 3 1 79 Certified and official checks 426 367 28 80 Demand deposits (included in transaction accounts and credit balances) 6,930 5,831 217 392 81 Individuals, partnerships, and corporations 4,581 3,661 182 381 82 U.S. addressees (domicile) 3,422 2,810 150 375 83 Non-U.S. addressees (domicile) 1,159 852 32 5 84 Commercial banks in United States (including IBF)s. 117 110 1 0 85 U.S. branches and agencies of other foreign banks 18 17 0 0 86 Other commercial banks in United States 99 93 1 0 87 Banks in foreign countries 781 705 5 2 88 Foreign branches of U.S. banks 10 10 0 0 89 Other banks in foreign countries 771 0 5 2 90 Foreign governments and official institutions (including foreign central banks) 349 316 2 1 91 All other deposits and credit balances 676 671 1 1 92 Certified and official checks 426 367 93 Non-transaction accounts (including MMDAs, excluding IBFs) 135,395 116,021 4,037 7,201 94 Individuals, partnerships, and corporations 93,958 77,609 3,223 6,393 95 U.S. addressees (domicile) 79,741 69,257 1,222 5,334 % Non-U.S. addressees (domicile) 14,217 8,352 2,000 1,059 1 1 1 9 9 9 0 0 0 7 8 9 1 2 0 C B o a U O O F m n o . t t k m S h h r s . e e e e i r i r b r n g c n b c r i f o a a a o b m n n l r r c k e m b a h i s a g n e e n n i s c r n k h c a c s i e f o n a o s i l u d r n o n e b f a i t U a g g r U n n n i e e k n . i s c S t s c e o . i d i u e n b s n S a U t o n t r a f n i k e t i o s e s t t s e h d ( e i r n S c t f a l o u t r e d e s i i n gn g b IB an F k s s ) . 3 2 1 2 2 2 3 0 1 , , , , , , 0 5 6 1 3 5 6 4 0 5 9 3 9 6 8 6 0 9 3 2 1 2 0 0 3 0 1 , , , , , , 1 0 0 4 1 4 9 9 0 1 0 1 5 3 0 8 1 8 5 5 8 9 1 7 5 0 2 0 0 6 5 1 1 1 6 1 2 4 4 2 5 7 1 8 1 0 103 Foreign governments and official institutions (including foreign central banks) 1,096 803 217 2 104 All other deposits and credit balances 4,187 3,995 0 0 105 IBF deposit liabilities 117,000 155,988 11,263 106 Individuals, partnerships, and corporations 16,068 9,233 1,235 107 U.S. addressees (domicile) 362 362 0 108 Non-U.S. addressees (domicile) 15,706 8,870 1,235 109 Commercial banks in United States (including IBFs). 54,764 49,943 3,062 110 U.S. branches and agencies of other foreign banks 48,204 44,211 2,523 111 Other commercial banks in United States 6,560 5,732 539 112 Banks in foreign countries 92,152 83,235 6,532 113 Foreign branches of U.S. banks 8,123 6,946 823 114 Other banks in foreign countries 84,029 76,289 5,709 115 Foreign governments and official institutions (including foreign central banks) 13,936 13,304 435 116 All other deposits and credit balances 273 273 0 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • February 1992 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 1991'—Continued Millions of dollars All states New York California Illinois IItteemm in I c T B l o u F t d a ' i s l n g I o B n F ly 's in I c T B l o u F t d a ' i s l n g I o B n F ly 's in I c T B l o u F t d a ' i s l n g I o B n F ly 's in I c T B l o u F t d a ' i s l n g I o B n F ly 's 117 Federal funds purchased and securities sold under agreements to repurchase 81,020 6,155 61,908 3,355 12,706 2,025 5,683 775 118 U.S. branches and agencies of other foreign banks 16,159 2,550 10,189 750 4,139 1,330 1,648 470 119 Other commercial banks in United States 26,830 978 18,166 427 5,667 551 2,791 0 120 Other 38,031 2,627 33,552 2,177 2,900 144 1,243 305 121 Other borrowed money 118,052 50,499 65,436 21,737 37,968 20,519 12,347 7,577 122 Owed to nonrelated commercial banks in United States (including IBFs) 48,663 19,759 21,955 5,417 20,171 11,310 4,801 2,536 123 Owed to U.S. offices of nonrelated U.S. banks 1188,,332266 2,323 99,,886611 758 55,,776644 1.186 11,,993333 317 124 Owed to U.S. branches and agencies of nonrelated foreign banks 30,337 17,436 12,094 4,659 14,407 10,124 2,868 2,219 125 Owed to nonrelated banks in foreign countries 29,473 27, 988 15,053 14,056 9,442 8,985 4,778 4,778 126 Owed to foreign branches of nonrelated U.S. banks ... 2,833 2,752 785 723 1,624 1,624 405 405 127 Owed to foreign offices of nonrelated foreign banks 26,640 25,236 14,269 13,333 7,818 7,361 4,373 4,373 128 Owed to others 39,916 2,752 28,427 2,264 8,355 225 2,767 263 129 All other liabilities 51,719 6,870 40,732 5,893 6,825 727 33,,111100 198 130 Branch or agency liability on acceptances executed and outstanding 25,452 n.a. 19,123 n.a. 4,778 n.a. 786 n.a. 131 Other liabilities to nonrelated parties 26,267 6,870 21,609 5,893 2,046 727 2,324 198 132 Net due to related depository institutions3 101,124 50,625 55,070 40,190 1100,,228877 591 1177,,990044 7.291 133 Net due to head office and other related depository institutions 101,124 n.a. 55,070 n.a. 1100,,228877 n.a. 1177,,990044 n.a. 134 Net due to establishing entity, head office, and other related depository institutions5 n.a. 50,625 n.a. 40,190 n.a. 591 n.a. 7,291 MEMO 135 Non-interest bearing balances with commercial banks in United States 1,732 0 1,436 0 122 0 101 0 136 Holding of commercial paper included in total loans 1,372 1,187 116 67 137 Holding of own acceptances included in commercial and industrial loans 2,080 11,,338866 459 57 138 Commercial and industrial loans with remaining maturity of one year or less 92,872 51,491 19,602 12,641 139 Predetermined interest rates 57,122 n.a. 30,736 n.a. 12,102 n.a. 8,014 n.a. 140 Floating interest rates 35,750 20,755 77,,550000 44,,662277 141 Commercial and industrial loans with remaining maturity of more than one year 66,593 38,324 13,922 7,761 142 Predetermined interest rates 21,493 11,709 4,038 3,653 143 Floating interest rates 45,100 26,615 9,884 4,108 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A83 4.30—Continued Millions of dollars All states New York California Illinois IItteemm Total Total Total Total excluding IBFs excluding IBFs excluding IBFs excluding IBFs IBFs only IBFs only IBFs only IBFs only 111144444444 CCCCoooommmmppppoooonnnneeeennnnttttssss ooooffff ttttoooottttaaaallll nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnn aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ttttoooottttaaaallll ddddeeeeppppoooossssiiiittttssss aaaannnndddd ccccrrrreeeeddddiiiitttt bbbbaaaallllaaaannnncccceeeessss ooooffff t t t 1 nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnnaaaallll aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddiiiinnnngggg IIIIBBBBFFFFssss 140,685 122,576 4,247 7,087 111144445555 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 102,214 88,184 2,458 5,368 111144446666 OOOOtttthhhheeeerrrr ttttiiiimmmmeeee ddddeeeeppppoooossssiiiittttssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 111144447777 TTTTiiiimmmmeeee oooo rrrr CCCC mmmm DDDD oooo ssss rrrr iiii eeee nnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 25,071 n \ .a . 22,081 n \ .a . 1,158 n * .a . 1,500 n1.a. wwwwiiiitttthhhh rrrreeeemmmmaaaaiiiinnnniiiinnnngggg mmmmaaaattttuuuurrrriiiittttyyyy ooooffff mmmmoooorrrreeee tttthhhhaaaannnn 11112222 mmmmoooonnnntttthhhhssss ........ 13,401 12,310 631 218 All states2 New York California Illinois inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u F t d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s 111144448888 MMMMaaaarrrrkkkkeeeetttt vvvvaaaalllluuuueeee ooooffff sssseeeeccccuuuurrrriiiittttiiiieeeessss hhhheeeelllldddd 56,086 14,977 50,673 13,673 3,453 828 1,506 428 111144449999 IIIImmmmmmmmeeeeddddiiiiaaaatttteeeellllyyyy aaaavvvvaaaaiiiillllaaaabbbblllleeee ffffuuuunnnnddddssss wwwwiiiitttthhhh aaaa mmmmaaaattttuuuurrrriiiittttyyyy ggggrrrreeeeaaaatttteeeerrrr tttthhhhaaaannnn oooonnnneeee ddddaaaayyyy iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ooootttthhhheeeerrrr bbbboooorrrrrrrroooowwwweeeedddd mmmmoooonnnneeeeyyyy 68,880 n.a. 33,014 n.a. 25,242 n.a. 8,890 n.a. 111155550000 NNNNuuuummmmbbbbeeeerrrr ooooffff rrrreeeeppppoooorrrrttttssss ffffiiiilllleeeedddd6666 580 0 272 0 133 0 55 0 1. Data are aggregates of categories reported on the quarterly form FFIEC 002, that no IBF data re reported for that item, either because the item is not an eligible "Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign IBF asset or liability or because that level of detail is not reported for IBFs. From Banks." Details may not add to totals because of rounding. This form was first December 1981 through September 1985, IBF data were included in all applicable used for reporting data as of June 30, 1980, and was revised as of December 31, items reported. 1985. From November 1972 through May 1980, U.S. branches and agencies of 4. Total assets and total liabilities include net balances, if any, due from or due foreign banks had filed a monthly FR 886a report. Aggregate data from that report to related banking institutions in the United States and in foreign countries (see were available through the Federal Reserve statistical release G. 11, last issued on footnote 5). On the former monthly branch and agency report, available through July 10, 1980. Data in this table and in the G. 11 tables are not strictly comparable the G.ll statistical release, gross balances were included in total assets and total because of differences in reporting panels and in definitions of balance sheet liabilities. Therefore, total asset and total liability figures in this table are not items. comparable to those in the G.ll tables. 2. Includes the District of Columbia. 5. "Related banking institutions" includes the foreign head office and other 3. Effective December 1981, the Federal Reserve Board amended Regulations U.S. and foreign branches and agencies of the bank, the bank's parent holding D and Q to permit banking offices located in the United States to operate company, and majority-owned banking subsidiaries of the bank and of its parent International Banking Facilities (IBFs). As of December 31, 1985 data for IBFs holding company (including subsidiaries owned both directly and indirectly). are reported in a separate column. These data are either included in or excluded 6. In some cases two or more offices of a foreign bank within the same from the total columns as indicated in the headings. The notation "n.a." indicates metropolitan area file a consolidated report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 Index to Statistical Tables References are to pages A3-A83 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Demand deposits Agricultural loans, commercial banks, 20, 21 Banks, by classes, 19-22, 71, 73, 75 Assets and liabilities (See also Foreigners) Ownership by individuals, partnerships, and corporations, Banks, by classes, 19-21 22 Domestic finance companies, 34 Turnover, 16 Federal Reserve Banks, 11 Depository institutions Financial institutions, 26 Reserve requirements, 9 Foreign banks, U.S. branches and agencies, 22, 80-83 Reserves and related items, 4, 5, 6, 13 Automobiles Deposits (See also specific types) Consumer installment credit, 37, 38 Banks, by classes, 4, 19-21, 22, 71, 73, 75 Production, 47, 48 Federal Reserve Banks, 5,11 Turnover, 16 BANKERS acceptances, 10, 23, 24 Discount rates at Reserve Banks and at foreign central banks and Bankers balances, 19-21, 80-83. (See also Foreigners) foreign countries (See Interest rates) Bonds (See also U.S. government securities) Discounts and advances by Reserve Banks (See Loans) New issues, 33 Dividends, corporate, 33 Rates, 24 Branch banks, 22, 55 EMPLOYMENT, 45 Business activity, nonfinancial, 44 Eurodollars, 24 Business expenditures on new plant and equipment, 33 Business loans (See Commercial and industrial loans) FARM mortgage loans, 36 CAPACITY utilization, 46 Federal agency obligations, 5, 10, 11, 12, 29, 30 Capital accounts Federal credit agencies, 31 Banks, by classes, 19, 71, 73, 75 Federal finance Federal Reserve Banks, 11 Debt subject to statutory limitation, and types and ownership Central banks, discount rates, 67 of gross debt, 28 Certificates of deposit, 24 Receipts and outlays, 26, 27 Commercial and industrial loans Treasury financing of surplus, or deficit, 26 Commercial banks, 17, 20, 70, 72, 74, 76-79 Treasury operating balance, 26 Weekly reporting banks, 20-22 Federal Financing Bank, 26, 31 Commercial banks Federal funds, 7, 18, 20, 21, 22, 24, 26 Assets and liabilities, 19-21, 76-79 Federal Home Loan Banks, 31 Commercial and industrial loans, 17, 19, 20, 21, 22 Federal Home Loan Mortgage Corporation, 31, 35, 36 Consumer loans held, by type and terms, 37, 38, 70, 72, Federal Housing Administration, 31, 35, 36 74, 80-83 Federal Land Banks, 36 Loans sold outright, 20 Federal National Mortgage Association, 31, 35, 36 Nondeposit funds, 18 Federal Reserve Banks Number by classes, 71, 73, 75 Condition statement, 11 Real estate mortgages held, by holder and property, 36 Discount rates (See Interest rates) Terms of lending, 76-79 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) Federally sponsored credit agencies, 31 Construction, 44, 49 Finance companies Consumer installment credit, 37, 38 Assets and liabilities, 34 Consumer prices, 44, 46 Business credit, 34 Consumption expenditures, 52, 53 Loans, 37, 38 Corporations Paper, 23, 24 Nonfinancial, assets and liabilities, 33 Financial institutions Profits and their distribution, 33 Loans to, 20, 21, 22 Security issues, 32, 65 Selected assets and liabilities, 26 Cost of living (See Consumer prices) Float, 51 Credit unions, 37 Flow of funds, 39, 41, 42, 43 Currency and coin, 19, 70, 72, 74 Foreign banks, assets and liabilities of U.S. branches and Currency in circulation, 5, 14 agencies, 21, 22, 80-83 Customer credit, stock market, 25 Foreign currency operations, 11 Foreign deposits in U.S. banks, 5, 11, 20, 21 DEBITS to deposit accounts, 16 Foreign exchange rates, 68 Debt (See specific types of debt or securities) Foreign trade, 54 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A85 Foreigners REAL estate loans Claims on, 55, 57, 60, 61, 62, 64 Banks, by classes, 17, 20, 21, 36, 72 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, personal and national, 44, 51, 52 Residential mortgage loans, 35 Industrial production, 44, 47 Retail credit and retail sales, 37, 38, 44 Installment loans, 37, 38 Insurance companies, 28, 36 SAVING Interest rates Flow of funds, 39, 41, 42, 43 Bonds, 24 National income accounts, 51 Commercial banks, 76-79 Savings and loan associations, 36, 37, 39. (See also SAIF-insured Consumer installment credit, 38 institutions) Federal Reserve Banks, 8 Savings Association Insurance Funds (SAIF) insured institutions, 26 Foreign central banks and foreign countries, 67 Savings banks, 26, 36, 37 Money and capital markets, 24 Savings deposits (See Time and savings deposits) Mortgages, 35 Securities (See also specific types) Prime rate, 23 Federal and federally sponsored credit agencies, 31 International capital transactions of United States, 53-67 Foreign transactions, 65 International organizations, 57, 58, 60, 63, 64 New issues, 32 Inventories, 51 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, 72 Holdings of U.S. government securities, 28 Federal Reserve Banks, 11, 12 New security issues, 32 Financial institutions, 36 Ownership of securities issued by, 20, 21 Rates on securities, 24 LABOR force, 45 Stock market, selected statistics, 25 Life insurance companies (See Insurance companies) Stocks (See also Securities) Loans (See also specific types) New issues, 32 Banks, by classes, 19-21 Prices, 25 Commercial banks, 4, 17, 19-21, 70, 72, 74 Federal Reserve Banks, 5, 6, 8, 11, 12 Student Loan Marketing Association, 31 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, 71, 73, 75 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 National income, 51 Open market transactions, 10 Outstanding, by type and holder, 26, 28 OPEN market transactions, 10 Rates, 23 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

A86 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 RALPH W. SMITH, JR., Assistant Director J. VIRGIL MATTINGLY, JR., General Counsel 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 JOYCE K. ZICKLER, Assistant Director DIVISION OF CONSUMER JOHN J. MINGO, Adviser AND COMMUNITY AFFAIRS LEVON H. GARABEDIAN, Assistant Director GRIFFITH L. GARWOOD, Director (Administration ) GLENN E. LONEY, Assistant Director ELLEN MALAND, Assistant Director DIVISION OF MONETARY AFFAIRS DOLORES S. SMITH, Assistant Director DONALD L. KOHN, Director DAVID E. LINDSEY, Deputy Director DIVISION OF BANKING BRIAN F. MADIGAN, Assistant Director SUPERVISION AND REGULATION RICHARD D. PORTER, Assistant Director RICHARD SPILLENKOTHEN, Director NORMAND R.V. BERNARD, Special Assistant to the Board STEPHEN C. SCHEMERING, Deputy Director DON E. KLINE, Associate Director OFFICE OF THE INSPECTOR GENERAL WILLIAM A. RYBACK, Associate Director BRENT L. BOWEN, Inspector General FREDERICK M. STRUBLE, Associate Director BARRY R. SNYDER, Assistant Inspector General 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

A87 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

88 Federal Reserve Bulletin • February 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. WILLIAM H. HENDRICKS LAWRENCE B. LEMDSEY SUSAN M. PHILLIPS THOMAS H. HOENIG THOMAS C. MELZER RICHARD F. SYRON EDWARD W. KELLEY, JR. ALTERNATE MEMBERS EDWARD G. BOEHNE ROBERT D. MCTEER, JR. JAMES H. OLTMAN SILAS KEEHN GARY H. 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 WILLIAM J. MCDONOUGH, Manager for Foreign Operations, System Open Market Account FEDERAL ADVISORY COUNCIL IRA STEPANIAN, First District EUGENE A. MILLER, Seventh District CHARLES S. SANFORD, JR., Second District DAN W. MITCHELL, Eighth District TERRENCE A. LARSEN, Third District JOHN F. GRUNDHOFER, Ninth District JOHN B. MCCOY, Fourth District DAVID A. RISMILLER, Tenth District EDWARD E. CRUTCHFIELD, Fifth District RONALD G. STEINHART, Eleventh District E.B. ROBINSON, JR., Sixth District RICHARD M. ROSENBERG, Twelfth District HERBERT V. PROCHNOW, Secretary WILLIAM J. KORSVIK, Associate Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A89 CONSUMER ADVISORY COUNCIL COLLEEN D. HERNANDEZ, Kansas City, Missouri, Chairman DENNY D. DUMLER, Denver, Colorado, Vice Chairman BARRY A. ABBOTT, San Francisco, California JOYCE HARRIS, Madison, Wisconsin JOHN R. ADAMS, Philadelphia, Pennsylvania GARY S. HATTEM, New York, New York JOHN A. BAKER, Atlanta, Georgia JULIA E. HILER, Marietta, Georgia VERONICA E. BARELA, Denver, Colorado HENRY JARAMILLO, Belen, New Mexico MULGUGETTA BIRRU, Pittsburgh, Pennsylvania KATHLEEN E. KEEST, Boston, Massachusetts GENEVIEVE BROOKS, Bronx, New York EDMUND MIERZWINSKI, Washington, D.C. TOYE L. BROWN, Boston, Massachusetts BERNARD F. PARKER, JR., Detroit, Michigan CATHY CLOUD, Washington, D.C. OTIS PITTS, JR., Miami, Florida MICHAEL D. EDWARDS, Yelm, Washington JEAN POGGE, Chicago, Illinois GEORGE C. GALSTER, Wooster, Ohio JOHN V. SKINNER, Irving, Texas E. THOMAS GARMAN, Blacksburg, Virginia NANCY HARVEY STEORTS, Dallas, Texas DONALD A. GLAS, Hutchinson, Minnesota LOWELL N. SWANSON, Portland, Oregaon DEBORAH B. GOLDBERG, Washington, D.C. MICHAEL W. TIERNEY, Philadelphia, Pennsylvania MICHAEL M. GREENFIELD, St. Louis, Missouri SANDRA L. WILLETT, Boston, Massachusetts THRIFT INSTITUTIONS ADVISORY COUNCIL LYNN W. HODGE, Greenwood, South Carolina, President DANIEL C. ARNOLD, Houston, Texas, Vice President JAMES L. BRYAN, Richardson, Texas PRESTON MARTIN, San Francisco, California VANCE W. CHEEK, Johnson City, Tennessee RICHARD D. PARSONS, New York, New York BEATRICE D'AGOSTINO, Somerville, New Jersey THOMAS R. RICKETTS, Troy, Michigan THOMAS J. HUGHES, Merrifield, Virginia EDMOND M. SHANAHAN, Chicago, Illinois RICHARD A. LARSON, West Bend, Wisconsin WOODBURY C. TITCOMB, Worcester, Massachusetts Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A90 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 Governors of the Federal Reserve System. Payment from for- four Handbooks plus substantial additional material.) eign residents should be drawn on a U.S. bank. $200.00 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. 231 pp. $15.00 per copy. 1986. 1987. 288 pp. $15.00 per copy. CONSUMER EDUCATION PAMPHLETS 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. I (Regular Transactions). 1969. 100 pp. A Consumer's Guide to Mortgage Lock-Ins Vol. 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 monthly. (Requests must be prepaid.) About 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

A91 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 and financial subjects that are of general interest. Requests to obtain single copies of the full 160. BANKING MARKETS AND THE USE OF FINANCIAL SERtext or to be added to the mailing list for the series may be sent VICES BY SMALL AND MEDIUM-SIZED BUSINESSES, by Gregory E. Elliehausen and John D. Wolken. September to 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. 21 pp. 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. Fan 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. Rose Prices, Profit Margins, and Exchange Rates. 6/86. 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 REVIEW OF THE LITERATURE, by Mark J. Warshawsky. 1983 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

A92 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* 02106 Richard N. Cooper Richard F. Syron Jerome H. Grossman Cathy E. Minehan NEW YORK* 10045 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 John R. Hardesty, Jr. Ronald B. Duncan1 Charlotte 28230 Anne M. Allen Albert D. Tinkelenberg1 Culpeper Communications John G. Stoides1 and Records Center 22701 ATLANTA 30303 Edwin A. Huston Robert P. Forrestal Leo Benatar Jack Guynn Donald E. Nelson1 Birmingham 35283 Nelda P. Stephenson Fred R. Herr1 Jacksonville 32231 Lana Jane Lewis-Brent James D. Hawkins1 Miami 33152 Michael T. Wilson James T. Cuny 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 Seymour B. Johnson Ray Laurence MINNEAPOLIS 55480 Delbert W. Johnson Gary H. Stem 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 Kent M. 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. Erburu 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

A93 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories LEGEND ~~ Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities Boundaries of Federal Reserve Branch * Federal Reserve Branch Cities Territories Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis