Federal Reserve Bulletin, 1992-05

VOLUME 78 • NUMBER 5 • MAY 1992 FEDERAL RESERVE BULLETIN BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C. PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood • Donald L. Kohn • J. Virgil Mattingly, Jr. • Michael J. Prell • Edwin M. Truman The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Section headed by S. Ellen Dykes, the Graphics Center under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Table of Contents 313 U.S. INTERNATIONAL TRANSACTIONS Proposals to change the way depository insti- IN 1991 tutions compute and maintain their reserve requirements. In 1991, for the fourth consecutive year, the U.S. current account deficit narrowed substan- Publication of the 78th Annual Report, 1991. tially. The largest changes reflected improve- Changes in Board staff. ments in the merchandise trade balance and special transactions related to the war in the 333 LEGAL DEVELOPMENTS Persian Gulf. The sharp reduction in the re- Various bank holding company, bank service corded U.S. current account deficit was mircorporation, and bank merger orders; and rored by changes in recorded capital inflows pending cases. and the statistical discrepancy. 386 DIRECTORS OF FEDERAL RESERVE 326 INDUSTRIAL PRODUCTION AND BANKS AND BRANCHES CAPACITY UTILIZATION List of directors, by Federal Reserve District. The index of industrial production rose 0.6 percent in February, after having declined A1 FINANCIAL AND BUSINESS STATISTICS in each of the three preceding months. Total These tables reflect data available as of industrial capacity utilization rose 0.3 percent- March 27, 1992. age point in February, to 78.2 percent. A3 GUIDE TO TABULAR PRESENTATION 329 STATEMENT TO THE CONGRESS A4 Domestic Financial Statistics Alan Greenspan, Chairman, Board of Gover- A44 Domestic Nonfinancial Statistics nors, focuses on some of the broad consider- A53 International Statistics ations bearing on the outlook for the economy and says that, in part, our current economic A69 GUIDE TO STATISTICAL RELEASES AND adjustments can be seen as arising out of a SPECIAL TABLES process in which debt is being realigned with a more realistic outlook for incomes and asset A82 INDEX TO STATISTICAL TABLES values, before the Joint Economic Committee, March 3, 1992. A84 BOARD OF GOVERNORS AND STAFF A86 FEDERAL OPEN MARKET COMMITTEE 332 ANNOUNCEMENTS AND STAFF; ADVISORY COUNCILS Meeting of Consumer Advisory Council. A88 FEDERAL RESERVE BOARD Issuance of policy statement on the geographic PUBLICATIONS distribution of lending patterns of depository institutions. A90 FEDERAL RESERVE BANKS, BRANCHES, AND OFFICES Rescission of policy statement requiring applications for relocations of a subsidiary bank to A91 MAP OF THE FEDERAL RESERVE another state. SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1991 Kathryn A. Morisse, of the Board's Division of result of these changes, the U.S. current account International Finance, prepared this article. deficit narrowed dramatically (chart 1). Even after excluding the special cash grants by foreign gov- In 1991, for the fourth consecutive year, the U.S. ernments, the U.S. current account deficit narrowed current account deficit narrowed substantially. The sharply, from $96 billion in 1990 to $51 billion in largest changes reflected improvements in the mer- 1991. chandise trade balance and special transactions related to the war in the Persian Gulf. The sharp reduction in the recorded U.S. current account def- MAJOR INFLUENCES ON icit was mirrored by changes in recorded capital U.S. INTERNATIONAL TRANSACTIONS inflows and the statistical discrepancy. A $27 billion increase in merchandise exports Cyclical movements in economic activity at home and an $8 billion reduction in merchandise imports and abroad and factors affecting U.S. international yielded a $35 billion narrower trade deficit for the price competitiveness significantly influenced U.S. year (table 1); the trade deficit in 1991 was the international transactions in 1991. The crisis in the smallest since 1983. Cash contributions by foreign Persian Gulf had large, but generally transitory, governments to help pay costs of the Persian Gulf effects on the quarterly pattern of various compo- War reduced the size of the current account deficit nents of U.S. international transactions. $43 billion in 1991; the amount of these grants received in 1991 was much larger than that received in 1990. In addition, net receipts from ser- Relative Growth Rates vices expanded $10 billion in 1991 because of a strengthening in such areas as travel, professional From 1989 through 1991, economic growth abroad, services, and royalties and license fees. Net invest- on average, exceeded growth in the United States, ment income receipts changed little in 1991. As a and this difference contributed to the narrowing of 1. U.S. current account, 1987-91 Billions of dollars Changes, Item 1987 1988 1989 1990 1991 1990-91 -153.2 W116.6 11 -93.5 -81.7 -37.7 44.0 Trade balance , -159.5 . -127.0 m . -115.9 -108.1 -73.6 34.5 6.3 • 10.3 p 22.4 26.4 35.9 9.5 7.6 5.4 2.7 11.9 9.4 -2.6 Direct investment, net 33.4 36.8 81 42.5 52.7 51.4 -1.3 Portfolio investment, net -25.8 ; . -3i.5 m -39.8 -40.7 -42.0 -1.3 Unilateral transfers, net -14.7 -14.9 -15.5 -22.3 19.7 42.1 Foreign cash grants to the United States.. .0 .0 .0 4.3 42.5 38.2 Other transfers -14.7 -14.9 -15.5 -26.6 -22.8 3.8 Current account balance -160.2 -126.2 -106.3 -92.1 -8.6 83.5 MEMO: 1 Current account balance excluding -160.2 -1262 | -106.3 -96.4 -51.2 45.2 • SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S. international transactions accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

314 Federal Reserve Bulletin • May 1992 1. U.S. external balances, 1982-91 tic product (GDP). Imports accelerated sharply, and were probably an important component of a runup in inventories when industrial production fell and overall activity flattened out in the fourth quarter. Over the entire year, U.S. real GDP grew about lA percent (fourth quarter over fourth quarter). During 1991, economic growth in major U.S. export markets on average also slowed, although not as much as that in the United States. However, investment spending in key countries remained strong and was of particular importance to U.S. exports. To some extent, the deceleration of economic activity in some foreign industrial economies was an ongoing response to tighter policies introduced earlier, which were designed to counter inflationary The data are quarterly at seasonally adjusted annua lrates. pressures and to bring economic activity to more SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S. international transactions accounts. sustainable, noninflationary levels. The general slowdown in the major industrial countries continthe external deficit (chart 2). With the U.S. econ- ued longer than had been expected, however. Deomy moving further into recession in the first quar- clines in business confidence, the need for houseter of 1991, consumer and investment spending holds and businesses to reduce high levels of debt, declining, and business inventories being drawn and concerns about the quality of assets on the down, expenditures on imported goods and ser- balance sheets of banks also negatively affected vices fell. Even though growth in domestic spend- economic activity in some countries. The pattern of ing turned positive in the second quarter, spending growth varied considerably among major industrial by consumers on goods and by producers on dura- countries (table 2). Pronounced recessions in Canble equipment remained weak. By the third quarter, ada and the United Kingdom that began in 1990 increased spending both by consumers and by pro- extended into 1991, with only tentative signs of ducers supported some growth in U.S. gross domes- any recovery by year-end. In France and Italy, growth remained positive but sluggish. In Japan and western Germany, growth was brisk early in 2. Growth of real GDP or GNP, 1988-91 1991, but slowed markedly later in the year. Among industrial countries, investment spending 2. Economic growth in selected foreign economies, 1990-91 Percent change, year over year GNP or GDP growth I n1v9e9stm0en t growth' I CCoouunnttrryy 1990 19912 19912 Canada 1 - 2 - 3 -4 United Kingdom 1 -2 -2 -11 3 1 4 -2 2 13 2 5 4 1? 3 4 4 13 9 0 5 -15 20 9 * s ' 24 16 HOWKCJp 3 4 8 10 The data are quarterly at seasonally adjusted annual rates. The GDP or GNP for foreign countries is the weighted average of the Group of Ten 1. Gross fixed capital formation. (G-10) countries, other industrial countries, and developing countries. The 2. Data for 1991 are partly estimated. weights are based on U.S. bilateral nonagricultural exports. SOURCES. Various national sources. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1991 315 was strong only in western Germany, mainly in Agreement among the United States, Canada, and response to tight capacity utilization in the manu- Mexico. Investment spending also expanded in facturing sector and opportunities and needs related 1991 in other Latin American countries, notably both to unification and to developments in Eastern Venezuela and Argentina, and has been strong in Europe. economies such as Korea, Saudi Arabia, Thailand, Slowing growth, and in some cases actual de- and Hong Kong. clines, in overall output implied that several major industrial economies were operating below potential during 1991. Accordingly, inflation in those U.S. Price Competitiveness countries continued to moderate during the year, with average inflation as measured by the con- Consumer prices in the United States rose less in sumer price index (CPI) in the foreign Group of 1991 than prices on average in foreign industrial Ten (G-10) countries subsiding by the better part of countries (chart 3) and tended to improve the intera percentage point to near 4 percent (chart 3). national competitive position for U.S. goods and Particularly large improvements were evident in services. Since the mid-1980s, the major factor the United Kingdom and Sweden. In addition, a contributing to gains in U.S. international price drop in oil prices and the weakening of the dollar competitiveness, however, has been movements in after midyear reduced the upward pressure on exchange rates. prices abroad. In contrast, upward pressure on A broad measure of the price competitiveness of prices continued in Germany during 1991 as the U.S. goods and services is the "real," or "CPIlevel of economic activity remained high. adjusted," foreign exchange value of the dollar, Among U.S. trading partners in developing coun- which is computed as the ratio of U.S. consumer tries in 1991, economic performance was mixed, prices to foreign consumer prices translated into but on average growth was stronger than that in dollars at current nominal exchange rates. Two major foreign industrial countries. Investment ex- such measures of the dollar's real exchange rate are penditures, in particular, contributed to the strength shown in chart 4. U.S. prices have trended down of the expansion in key countries. In Mexico, growth of investment expenditures has been stronger than growth of overall GDP over the past 4. Real exchange value of the dollar against currencies two years (table 2); some of this strength may of selected countries, 1982-91 reflect anticipation of a North American Free Trade 3. Inflation as measured by increases in consumer prices, 1988-91 The real exchange value of the dollar is calculated using weighted nominal exchange rates adjusted with weighted consumer prices. The weights in the indexes are proportional to each country's share in world exports plus imports during the years 1972-76. The countries in the G-10 index are Belgium-Luxembourg, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, and the United Kingdom; the developing- The CPI for foreign countries is the weighted average of the G-10 countries index is composed of Brazil, Hong Kong, Korea, Malaysia, Mexcountries. The weights are shares in U.S. non-oil imports. ico, the Philippines, Singapore, and Taiwan. The data are quarterly. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

316 Federal Reserve Bulletin • May 1992 5. U.S. price competitiveness, 1967-91 countries to U.S. export prices (chart 5). From the longer-term perspective shown in this chart, one Ratio scale, 1982:4=100 can see that the fluctuations in exchange rates during 1991 did not significantly alter the improvement in U.S. price competitiveness, which has been a significant source of stimulus to U.S. exports for several years. At current exchange rates, the United States appears to hold an edge in labor costs relative to those in Germany and Japan (table 3). In 1990, average labor compensation per hour in manufacturing in Japan was somewhat below the U.S. level, whereas that in Germany was significantly above the U.S. level. At the same time, according to rough estimates, labor productivity in the manufacturing sector in Japan and Germany was about 25 to 30 per- Foreign prices are the weighted average of the G-10 countries expressed in cent below that in the United States.1 As a result, dollars. The data are quarterly. unit labor costs, that is, compensation divided by productivity, in Japan were somewhat above the U.S. relative to average prices in dollars in both foreign level and in Germany were substantially above the G-10 countries and in developing countries since U.S. level. Since 1985, German and Japanese unit the mid-1980s. The sharp decline relative to prices labor costs have risen in comparison to U.S. costs in other G-10 countries, in particular, largely re- (chart 6). This comparative rise can be attributed flected depreciations of the dollar's nominal forlargely to the appreciation of the mark and the yen eign exchange value against the currencies of those against the dollar over that period. countries. In 1991, the dollar appreciated in CPI-adjusted terms over the first half of the year against foreign 1. Peter Hooper and Kathryn A. Larin, "International Compari- G-10 currencies. This appreciation, which indi- son of Unit Labor Costs in Manufacturing," Review of Income and cated a temporary deterioration of U.S. price com- Wealth, series 35 (December 1989), pp. 335-55, updated using the latest Bureau of Labor Statistics data. Measures of unit labor costs petitiveness, was largely reversed during the latter are based partly on data published by the BLS. part of 1991. In the first quarter of 1992, the dollar moved up again. Against the currencies of developing countries, the dollar depreciated fairly steadily 6. Unit labor costs in manufacturing, 1980-91 in real terms in 1991. Unit cost A consolidated measure of U.S. export price — r-mb'- ——J..;.'^V'-"'"competitiveness is the ratio of average consumer prices in dollars in G-10 countries and developing 3. Index of unit labor costs in manufacturing in Japan and Germany relative to that in the United States, 1990 1990 U.S. level = 1.00 United Item Japan Compensation per hour 1.00 .87 U7 Output per hour (productivity) 1.00 .71 .76 Unit labor costs by output) 1.00 1.20 1.93 Dollars per unit of 1990 output; indexed to U.S. = 1.0 in 1990. Data for 1991 are estimated. SOURCE. See note 1 in the text. SOURCE. See note 1 in the text. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1991 317 Special Factors in 1991 compared with an improvement of $8 billion in 1990, as exports increased and imports Besides the underlying factors just reviewed, the declined (table 4). crisis in the Persian Gulf, which began in August 1990 and erupted briefly into war in the first quarter of 1991, strongly influenced the quarterly pat- Strong Expansion of Exports tern of U.S. trade and current account developments during the year. For the most part, the Merchandise exports continued their strong expandisruptions were transitory. Oil prices, which had sion over the four quarters of 1991. In nominal jumped in the fall of 1990, returned to pre-crisis terms, exports rose 7 percent, about the same pace levels by the second quarter of 1991; quantities of of increase as that recorded in the preceding year. oil shipped were also disrupted over the same pe- In real terms, the growth was even stronger—about riod. As a result, profits of U.S. oil companies on 9 percent—as prices of exports on average declined their overseas operations, which are part of the U.S. slightly, reflecting in large part falling prices of current account, gyrated sharply from late 1990 exported industrial supplies. through the first part of 1991. Automotive exports The key element in export growth during 1991 to Saudi Arabia and Kuwait surged in the second was capital goods (chart 7). Nearly two-thirds of and third quarters as vehicles and parts lost in the the increase in the value and quantity of exports war were replaced. However, the war-related trans- (fourth quarter over fourth quarter) reflected strong actions with the greatest effect on the U.S. current growth in shipments of capital goods; two-thirds of account were cash contributions from foreign govthat increase went to developing countries and oneernments to offset some of the costs of the war. third went to industrial countries. These cash contributions were recorded as positive Despite the sluggish overall economic growth unilateral transfers in the U.S. current account in recorded by many U.S. trading partners, high levels the fourth quarter of 1990 and throughout 1991. of investment expenditures in key countries, especially in developing countries in Latin America and DEVELOPMENTS IN MERCHANDISE TRADE Asia, boosted US. exports of capital equipment. Among developing countries, the largest increases The U.S. merchandise trade balance improved sub- in exports of U.S. capital equipment in 1991 (year stantially in 1991. The deficit narrowed $35 billion over year) went to Mexico, Venezuela, Korea, and 4. U.S. merchandise trade, 1989-91 Billions of dollars, seasonally adjusted 1990 1991 1 Item 11998899 11999900 11999911 Q4 Ql Q2 Q3 Q4 Trade -116 -108 -74 -28 -19 -16 -21 -19 Exports 361 390 417 101 101 104 104 108 Agricultural 42 40 40 9 10 9 10 11 Nonagricultural 319 349 376 91 91 94 94 97 Capital goods 139 154 167 39 39 43 41 44 Automotive products ... 35 37 40 9 8 10 11 10 Consumer goods 37 43 46 11 11 11 11 12 Industrial supplies 92 97 102 26 26 25 25 25 All other exports ...... 17 18 22 5 6 5 5 6 477 498 490 128 119 119 125 127 and products .. 51 62 51 18 13 13 13 12 Nonpetroleum 426 436 439 110 106 107 112 115 Consumer goods 103 106 108 27 25 25 28 30 Automotive products ... 87 87 85 22 20 20 23 22 Computers 22 23 26 6 6 7 7 7 Other capital goods 91 93 95 24 24 24 24 24 Industrial supplies 84 83 81 21 20 20 20 21 Foods and other imports 39 44 44 11 11 11 11 11 SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S. international transactions accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

318 Federal Reserve Bulletin • May 1992 Saudi Arabia, countries recording strong invest- Exports of items other than capital goods, which ment growth. Among industrial countries, the larg- accounted for nearly 60 percent of the total quanest increases went to Germany, also a country with tity exported in 1991, grew more slowly on average strong investment growth in 1991. However, a de- but showed distinctly different patterns for different crease in shipments of capital goods to Canada and items. For automotive exports, a large part of the the United Kingdom in 1991 reflected recessions jump recorded in the second and third quarters was accompanied by a sharp drop in investment expen- a surge in shipments to Kuwait and Saudi Arabia as ditures in both countries. these countries replaced vehicles and parts lost in All major components of exported capital goods the war. Agricultural exports picked up toward the expanded strongly in 1991. The quantity of ex- end of 1991 as shipments of grain to Russia and ported computers and parts increased steadily dur- other members of the Commonwealth of Indepening the year (upper left panel of chart 7), with dent States increased. Other exports, primarily particularly strong increases in exports going to nonagricultural industrial supplies and consumer developing countries in Latin America. Substantial goods, were flat on average until the fourth quarter. increases in exports of computers and parts also The quantity of exported nonagricultural industrial went to developing countries in Asia as well as to supplies, which was nearly 25 percent of all ex- Germany and Canada. Deliveries of aircraft also ports, grew only 2 percent in 1991 (fourth quarter rose sharply to both industrial and developing over fourth quarter) compared with 11 percent in economies—especially France, Germany, Switzer- 1990. Exported consumer goods, which provided a land, Brazil, Singapore, Korea, and China. The noticeable boost to export growth in 1990 particuquantity of all other capital goods exported also larly to Europe, sagged during 1991 and rose above increased; most of the increase in shipments went levels recorded at the end of 1990 only in the to Mexico and Japan (especially industrial and fourth quarter. service-industry machinery) and to Venezuela (oil Overall, the quantity of U.S. merchandise exdrilling equipment). ports grew at a healthy 9 percent rate in 1991, 7. Quantity of U.S. exports, 1988-91 The data are quarterly at seasonally adjusted annual rates. SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, national income and product accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1991 319 8. Exports and U.S. price competitiveness, 1967-91 share increased in 1991 to levels that were last recorded a decade earlier. Ratio scale. 1982:4=100 180 Slower Growth of Imports Ratio of foreign consumer prices Jy ^ The value of U.S. merchandise imports declined slightly in 1991. All of the decrease in value resulted from a drop in prices of imported oil from the inflated levels recorded in the second half of 1990 after Iraq invaded Kuwait. Excluding oil, imports rose 1 percent both in value and in quantity (year over year), the slowest rate of increase since 1982. I I I I I I 1 II 1 1 I 1 I I 1 II The recession and expectations about economic 1970 recovery buffeted non-oil imports during the quar- Foreign prices are expressed in dollars. U.S. exports exclude computers ters of 1991. Imports declined early in the year, as and agricultural goods and are adjusted for dock strikes. weak domestic spending reduced the demand for foreign goods. As the likelihood of an economic recovery in the United States increased after the despite the substantial slowing of growth abroad, end of the Gulf War, imports turned up—especially because of the positive influence of past gains in imports of consumer goods, computers, and autothe price competitiveness of U.S. goods and the motive products (chart 9)—and continued strong relative strength of investment demand. Comparing through the summer. The upturn in imports in the the curves plotted in chart 8 provides a historical second quarter and especially in the third quarter perspective on the influence of changes in price was proportionally much steeper than the increase competitiveness on U.S. exports. The ratio of U.S. in domestic demand (chart 10). When spending real nonagricultural exports (excluding computers) was more sluggish than anticipated in the fourth to foreign GDP can be used as a rough way to show quarter, some of the additional quantities of immovements in exports that exclude the effects of ports, particularly consumer goods, apparently rechanges in aggregate foreign spending. Movements mained in inventories, and import growth slowed in US. international price competitiveness are mea- considerably. sured as the ratio of foreign consumer prices to Two distinct trends developed in 1991 among U.S. export prices. From its low point in early categories of imports—sharp increases in imported 1985, which coincided with the peak in the dollar's consumer goods and computers and declines in foreign exchange value, U.S. price competitiveness other imports. The increase in imported consumer has increased dramatically. That increase reflects a goods came largely from China, particularly in combination of a cumulative depreciation of the apparel and household goods, and to a lesser extent dollar and increases in average foreign prices in from Latin America. For computers, the increase in local currencies relative to U.S. export prices. As imports persisted throughout the year and came not can be seen by the relationship of the two curves in only from Asia, especially Taiwan, Singapore, Mathe chart, increases in exports (excluding the effects laysia, China, and Japan, but also from other indusof changes in foreign economic activity) have gen- trial countries, particularly the United Kingdom, erally lagged improvement in U.S. price competi- Ireland, Germany, and Canada, where some U.S. tiveness by a year or more on average. This in- companies have increased operations. crease in competitiveness since the mid-1980s has All other non-oil imports on average declined in resulted in a steady rise in the U.S. share of exports 1991, even though the quarterly pattern was unby the members of the Organisation for Economic even. This unevenness was especially evident for Co-operation and Development to world markets automotive imports (the upper right panel of chart (excluding exports to the United States). The U.S. 9), which were 3 percent lower in value and 5 per- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

320 Federal Reserve Bulletin • May 1992 9. Quantity of U.S. non-oil imports, 1988-91 Billions of 19H87 doll ars Other imports Billions of 1987 dollars The data are quarterly at seasonally adjusted annual rates. SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, national income and product accounts. cent less in quantity in 1991 than in 1990. Sharp under the automotive free trade agreement, were declines in the quantity imported from Europe re- also little different in 1991 than in 1990. On the flected the effects of both the recession and the loss other hand, imports of automotive products from of price competitiveness. The value of automotive Mexico jumped 13 percent and totaled $8 billion in imports from Japan was about the same in 1991 as 1991. U.S. automotive producers dramatically inin 1990, because a steadily rising average unit creased the number of vehicles they assembled in value for imported cars about offset declines in Mexico for export, largely to the United States. quantity. Imports from Canada, largely from the Production of cars for export by Ford jumped U.S. Big Three producers operating in Canada 26 percent to 111,983 units in 1991, and production by Chrysler rose 22 percent. All of the increase in production for export by General Motors in 1991 10. U.S. merchandise imports, 1988-91 was of Chevrolet Cavaliers that were shipped directly to Canada and therefore were not counted in Billions of 1987 dollars Billions of 1987 dollars U.S. trade statistics. 5100 Prices of non-oil imports changed little in 1991 (fourth quarter over fourth quarter). Increases in the first and fourth quarters were about offset by declines in the second and third quarters. The declines in prices of non-oil imports resulted in large part from worldwide decreases in prices of primary commodities and the effect of the dollar's appreciation during the year on prices of finished manufactured goods. The increase in prices of non-oil imports in the fourth quarter of 1991 reflected primarily a turnaround in prices of imported con- 1988 1989 1990 1991 sumer goods (partly in response to the decline of Real domestic demand is gross domestic purchases. Real imports exclude oil and computers. the dollar) and higher prices of imported automo- SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, tive products at the beginning of a new model year. national income and product accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1991 321 Oil Imports 5. U.S. oil consumption, production, and imports, selected years, 1980-91 The value of oil imports fell more than 17 percent Millions of barrels per day in 1991 (year over year), as the conclusion of the Item 1980 1985 1990 1991P Persian Gulf War and the sluggish U.S. economy Consumption 17.1 15.7 17.0 16.6 pushed down both the price and the quantity of Production 10.8 11.2 9.7 9.8 imported oil. 6.9 5.1 8.0 7.6 The price of oil, which had been falling gradu- p Preliminary. SOURCE. Department of Energy, Energy Information Administration. ally from the peak level reached in October 1990 (chart 11), fell dramatically in January 1991 at the outset of Operation Desert Storm as it became prices were high, were rebuilt. In the fourth quarter, apparent that reasonably ample supplies would be the quantity of imported oil turned down again, maintained. Through September 1991, prices in reflecting sluggish U.S. activity and unseasonably spot markets fluctuated between $19 and $22 per warm weather. For the year as a whole, the quantity barrel. In October, heightened concerns over the of oil imported fell, largely as a result of a decline availability of Russian supplies during the winter, in oil consumption (table 5). Consumption of oil coupled with the continued delay in the return of fell 0.4 million barrels per day in 1991 relative to Iraqi production to the world oil market, pushed 1990, largely as a result of weak economic activity. prices above $24 per barrel. However, generally Moreover, the sharp price increases in late 1990 mild weather in the fourth quarter and sluggish stimulated U.S. oil production in 1991 and resulted economic activity in the industrial countries led to in the first annual increase in production since a decline in prices. At the year's end, the spot price 1985. Finally, the drawdown in Strategic Petroleum for West Texas Intermediate hovered around $19 Reserves that was announced at the outset of Operper barrel. During the opening months of 1992, oil ation Desert Storm also served to reduce imports. prices declined slightly on balance with the continuation of mild weather, sluggish economic activity, and strong OPEC production. The quantity of oil imports, which had plunged NONTRADE CURRENT ACCOUNT after the sharp rise in oil prices in the fall of 1990, TRANSACTIONS increased over the first three quarters of 1991 as inventories, which had been run down while oil Aside from developments in merchandise trade, the U.S. current account in 1991 recorded a steady improvement in net service receipts, little change 11. Oil prices, 1982-92 in net investment income receipts, and sharp swings in unilateral transfers. Dollars per barrel Growing Net Service Receipts Net receipts from service transactions increased $10 billion in 1991 (table 6), continuing an upward trend that began in 1986. Almost all of the increase in 1991 was in payments by foreigners for services provided by U.S. residents. Payments by U.S. residents to foreigners for services were roughly the same in 1991 as in 1990. More than half of the increase in service receipts from foreign residents was attributable to a 12 percent jump in receipts for travel and tourist expendi- SOURCE. Petroleum Intelligence Weekly, various issues; and U.S. Department of Commerce, Bureau of Economic Analysis. tures in the United States. Receipts from overseas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

322 Federal Reserve Bulletin • May 1992 6. Service transactions, 1988-91 net income payments on portfolio investments (pri- Billions of dollars vate plus government) grew slightly (table 7). Income received from U.S. direct investments 1988 1990 114991 abroad exceeded income paid to foreigners on their 10 22 direct investments in the United States by $51 bil- Receipts IM! lion in 1991. This difference was about the same as •' H»vel and 38 i19 that recorded in 1990. Income earned abroad in ; and license fees ... ii 1991 by affiliates of U.S. companies dropped about Business, professional, and technical services 5 $4 billion, exclusive of capital gains and losses, Education 4 9 from the amount recorded in 1990 as economic Other service receipts 16 conditions weakened, especially in such key coun- 92 tries for U.S. investments as Canada and the United 41 20 Kingdom. However, earnings by foreigners on their 5 Military payments* 15 direct investments in the United States virtually Other serv * i ce paymen _ t s - ^mm JL " 13 14 collapsed. For 1991, earnings by foreign direct SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, investors amounted to a net loss of $2 billion, U.S. international transactions accounts. excluding capital gains and losses; this loss represented a fall of approximately $6 billion from the 1990 level and a drop of more than $10 billion visitors rebounded sharply after the Persian Gulf from 1988 and 1989 levels. While foreign petrohostilities, and receipts from Canada and Mexico leum and manufacturing affiliates operating in the also rose, especially in border areas. The remaining United States experienced cyclical declines in inincrease in service receipts was spread among a come, other foreign affiliates, in such industries as wide range of private services, especially for royal- real estate, insurance, banking, and trade, experities and license fees, and business, professional, enced heavy losses that totaled about $5 billion for and technical services. the year. While U.S. payments to foreigners for services Net income payments to foreigners on portfolio were only slightly higher in 1991 than in 1990, investments (private plus government) changed litthere were largely offsetting movements among tle between 1990 and 1991 despite a large decrease different items. Foreign expenditures by the U.S. military fell during 1991, after having peaked during the Persian Gulf crisis in the fourth quarter of 7. U.S. net investment income, 1988-91 1990 and the first quarter of 1991. The rate of Billions of dollars decline in military payments increased during the year as the number of troops stationed abroad, 1988 • • 1S89 1990 1991 especially in Europe, was reduced. Expenditures by ijiivestment income, net 5 3 12 U.S. residents on travel abroad increased only mar- HM Direct investment income, net 37 42 53 51 ginally in 1991, reflecting the effects of both the • Capital gains or losses (-), net... -r -0 | 3 0 Other direct investment sagging U.S. economy and the drop-off in travel early in the year associated with the war in the , net ....... 5 3 0 8 I | M 5 S 4 I 5 5 0 4 IK 51 M^m 0 1 . 2 Persian Gulf. On the other hand, payments to fore 1 i 7 g n p e e r r s c en f t o r in t 1 e 9 l 9 e 1 co . mmunications services rose Pa C ym ap e i n ta ts l gains or losses (—) .. 5 1 0 4 1 1 m 1 m 5 1 2 2 ! M f P 5 2 3 e If l e i 1 Other direct investment income payments ...... 13 10 " 4' • -2 Portfolio income, net -31 -40 -41 -42 Receipts IT 60 ? 73 76 Investment Income ,'jPrivaie J* 69 • 66 t 56 Government ...J .t 6 •io 8 92 114 116 1 • 106 On balance, net investment income receipts • G m o vemmaiB 6 3 2 0 tJB 99 g ! 7 3 8 8 MI 67 I P changed only marginally in 1991. Net income re- SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, ceipts from direct investments declined a bit, and- U.S. international transactions accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1991 323 in interest rates. Portfolio income receipts from 8. Unilateral transfers, 1990-91 foreigners amounted to $64 billion in 1991, $12 bil- Billions of dollars lion less than in 1990. Portfolio income payments to foreigners also declined in 1991, about the same amount that receipts declined. While a decrease in interest rates tends to reduce both portfolio income receipts and payments, for the United States the decline in interest rates reduces income payments more than income receipts because the United States has a net liability position in recorded portfolio capital. Had the U.S. net portfolio position been unchanged in 1991 from the level recorded at the end of 1990, the decline in interest rates during the year would have reduced net income payments roughly $4 billion. But in 1991 there was a significant deterioration in the net portfolio position. Because most of this deterioration occurred in the second half of the year, the effect of this change on income payments for the year was relatively small. However, the negative effect of an increase in net liabilities about offset the positive effect of the decline in interest rates, and net portfolio income payments in 1991 were about the same as in 1990. Unilateral Transfers Transactions relating to the Persian Gulf War had a huge effect on unilateral transfers (table 8). The largest of the war-related transactions was the cash contribution made by foreign governments to the U.S. government to offset costs of the war. These cash grants were recorded as positive unilateral transfers in the fourth quarter of 1990 and in all four quarters of 1991, with the largest contribution occurring in the first quarter. The offset in the balance-of-payments accounts to cash grants received was a reduction in net foreign assets in the United States. The specific component reduced depended on whether the cash payments were financed by reduced holdings of official assets in the United States, by borrowing or drawdowns of official investments in the Euromarkets, or both. The United States has made several large grants to foreign governments for debt forgiveness. In the fourth quarter of 1990, the United States granted Egypt $7 billion in debt forgiveness, essentially making repayment on Egypt's behalf of principal ($5 billion) and of interest ($2 billion) owed to the U.S. government; an additional $1 billion was proif Total Foreign US. debt Other transfers cash grants forgiveness transfers 1990 -22.3 4.3 !|MHR -19.4 1991 19.7 42.5 J -5.2 -17.6 1990:1 -4.0 .0 I -3.9i':: " ' 2 -4.7 o l .0 -4.7 • 3..w... -4.3 .0 IP -4.3 4 -9.3 4.3 gggty -6.5 1991:1 16.9 22.7 11 -1.2 ni -4X$t, 2 7.1 IS I -.1 [tCi -4.4 3 -2.9 -3.9 -3.6 4 -1.4 PIPIPP -5.1 | SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S. international transactions accounts. vided in the first quarter of 1991. Grants by the U.S. government to forgive outstanding debts also were provided during the year to Poland and to various developing countries, primarily in Latin America. Other transfers reflect grants by the U.S. government for development and related assistance, for the financing of military purchases, and for private remittances and transfers. Grants financing military purchases dropped from $6.1 billion in 1990 to $3.7 billion in 1991; these grants had been boosted in 1990 when the United States assisted Israel, Egypt, and Turkey during military operations in the Persian Gulf. Private remittances to support the emigration of Soviet and Ethiopian Jews to Israel remained strong. CAPITAL ACCOUNT TRANSACTIONS AND THE STATISTICAL DISCREPANCY The sharp reduction in the U.S. current account deficit in 1991 was mirrored by changes in recorded capital inflows and the statistical discrepancy (table 9). The statistical discrepancy in the international accounts, which had jumped to $64 billion in 1990, declined to negative $3 billion in 1991. While there are certainly errors and omissions in the recording of current account transactions, no obvious reasons were apparent as to why the statistical discrepancy should have increased so much in 1990; the jump was most likely the result of errors and omissions in the reporting of capital flows. Unfortunately, these doubts about the accuracy of the capital flow data in 1990 make it impossible to draw any useful Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

324 Federal Reserve Bulletin • May 1992 9. Composition of U.S. capital flows, 1987-91 Billions of dollars 1987 1988 1989 1990 •991 -160 -126 IT! -106 56 39 -15 33 . 45 40 m 32 9 npM w* -25 -11 1 3 1 |gjj Private capital, net 111 97 103 -5 Net inflows reported by U.S. banking offices — 47 14 12 26 35 41 -30 Private foreign net purchases of the following: U.S. Treasury securities -8 20 30 ' -1 U.S. corporate bonds1 24 23 27 US. corporate stocks 1,2*-*, • 16 -1 i 1 ifWi US. net purchases of foreign securities f -5 -8 if -23 §29 t 30 45 111 42 8 Foreign direct investment in the United States 58 59 P Hit 71 37 U.S. direct inve -28 -14 ^V -29 -29 oom •.....] 8 8 1111 Statistical discrepancy -7 18 1. Transactions with finance affiliates in the Netherlands Antilles have SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, been excluded from direct investment outflows and added to foreign pur- U.S. international transactions accounts. chases of U.S. securities. conclusions from comparing recorded capital flows duced their reliance on borrowing from abroad. in 1990 with those in 1991. And finally, weak growth of bank credit in the Net inflows of official capital during 1991 were United States in 1991 also reduced the need to partially offset by net outflows of private capital. borrow from abroad. Net foreign official inflows amounted to $21 billion Securities transactions in 1991 reflected the condespite net intervention sales of dollars in foreign tinued internationalization of financial markets; alexchange markets by the G-10 countries and de- though the net inflow was modest, private foreignspite the drawdown of the reserves held in the ers added substantially to their holdings of U.S. United States by certain countries to finance their stocks and bonds, while U.S. residents bought net transfers to the United States to cover the cost of foreign stocks and bonds on a large scale. Re- Operation Desert Storm. Some countries financed flecting interest rate developments that encouraged part of their contributions to cover the cost of shifting from short- to long-term financing, issu- Operation Desert Storm by borrowing and liquidat- ance of foreign bonds in the United States and ing investments in the Euromarkets rather than by issuance of Eurobonds by U.S. corporations were drawing on their reserve holdings in the United both strong. In addition, investment funds located States. Countries that were not members of the in the Caribbean were very active in the market for G-10 or OPEC recorded the largest increases in U.S. Treasury securities. official reserve holdings in the United States. Capital outflows associated with U.S. direct in- Net private capital outflows were $18 billion in vestment abroad remained strong, at $30 billion. 1991. Most of the outflows were from banks and The European Community received almost half of probably in large part reflected three factors. As the outflow in 1991 as U.S. investors positioned mentioned earlier, certain governments increased themselves to take advantage of EC 1992. In addithe net demand for funds in the Euromarkets by tion, U.S. investors participated in the privatization financing their contributions to Desert Storm there. of previously state-owned enterprises. One of the Secondly, a shift in the pattern of funding by some largest privatizations involved investment in Tele- U.S. agencies and branches of foreign banks oc- fonos de Venezuela by a GTE-led consortium. In curred after the Federal Reserve eliminated certain contrast, foreign direct investment in the United reserve requirements in December 1990. These States remained far below recent peaks, totaling agencies and branches increased their issuance of $22 billion in 1991 compared with $37 billion in large time deposits in the United States and re- 1990 and $71 billion in 1989. Foreign takeovers of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1991 325 U.S. businesses declined, and reinvested earnings the same time, exports should continue to expand were depressed by the recession. Direct investment and may grow at a somewhat faster rate later in the inflows from Japan fell to only $4 billion in 1991 year in response to a gradual strengthening of ecofrom $17 billion in 1990. nomic growth in several key markets, especially if increases in investment expenditures in developing PROSPECTS FOR 1992 countries continue at last year's rate. However, the scope for further progress in narrowing the U.S. Over the year ahead, U.S. imports of goods and external deficit will depend on the ability of the services should grow more rapidly than last year as U.S. economy to improve its productivity and price the domestic economy recovers from recession. At performance relative to trends in foreign countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

326 Industrial Production and Capacity Utilization Released for publication March 17 accounted for about half of the rise in the total index. In other categories, overall production par- The index of industrial production rose 0.6 percent tially recovered last month, after a marked weakenin February, after having declined in each of the ing in December and January. At 107.2 percent of three preceding months. Revised estimates for De- its 1987 annual average, total industrial production cember and January show declines of 0.6 percent in February was 1.4 percent above its year-ago and 0.8 percent respectively. In February, a re- level. Total industrial capacity utilization rose bound in the output of motor vehicles and parts 0.3 percentage point in February, to 78.2 percent. Industrial production indexes Twelve-month percent change Twelve-month percent change Products Durable manufacturing 1987 1988 1989 1990 1991 1992 1987 1988 1989 1990 1991 1992 Capacity and industrial production Ratio scale, 1987 production = 100 Ratio scale, 1987 production = 100 — Total industry — 140 — Manufacturing __________ _ 140 Capacity -—" Capacity _ 120 120 ~ " 100 = " ~ " 100 —^ ^^^^ Production — 80 — P r o d u c t i on — 80 1 1 1 1 1 1 1 1 1 Percent of capacity Percent of capacity Total industry Manufacturing 90 90 Utilization Utilization ^ ^^ - 80 —- 80 70 70 1 1 1 1 1 1 1 1 1 1 1 1 I ll 1980 1982 1984 1986 1988 1990 1992 1980 1982 1984 1986 1988 1990 1992 All series are seasonally adjusted. Latest series, February. Capacity is an index of potential industrial production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

327 Industrial production and capacity utilization Industrial production, index, 1987=100' Percentage change Category 11999911 11999922 19912 19922 FFeebb.. 11999911 ttoo Nov/ Dec.r Jan.? Feb.P Nov.r Dec.r Jan.P Feb.P FFeebb.. 11999922 Total 108.1 107.4 106.6 107.2 -.3 -.6 -.8 .6 1.4 Previous estimate 108.1 107.6 106.7 -.3 -.4 -.9 Major market groups Products, total 109.0 108.5 107.6 108.2 .0 -.5 -.8 .6 1.2 Consumer goods ... 110.0 109.5 108.5 109.4 .3 -.5 -.9 .9 4.5 Business equipment 121.8 121.4 120.0 121.2 -.4 -.3 -1.2 1.0 .5 Construction supplies 95.9 95.2 95.3 95.5 .6 -.8 .2 .2 -1.0 Materials 106.6 105.7 105.0 105.6 -.8 -.8 -.7 .6 1.7 Major industry groups Manufacturing 108.6 108.1 107.4 108.1 -.4 -.4 -.7 .7 2.0 Durable 107.8 106.9 105.8 106.8 -.4 -.8 -1.1 1.0 .7 Nondurable 109.6 109.7 109.4 109.8 -.4 .0 -.2 .3 3.6 Mining 99.6 98.7 97.1 97.4 -1.1 -.9 -1.6 .3 -5.3 Utilities 111.0 107.9 107.3 106.7 1.5 -2.8 -.6 -.5 2.0 Capacity utilization, percent MMMEEEMMMOOO CCCaaapppaaaccciiitttyyy,,, pppeeerrr--ccceeennntttaaagggeee 1991 1992 ccchhhaaannngggeee,,, AAvveerraaggee,, LLooww,, HHiigghh,, JJJaaannn... 111999999111 11996677--9900 11998822 11998888--8899 tttooo Feb. Nov.' Dec/ Jan/ Feb.P JJJaaannn... 111999999222 Total 82.1 71.8 85.0 79.1 793 78.7 77.9 78.2 2.5 Manufacturing 81.4 70.0 85.1 78.0 78.2 77.7 77.0 77.4 2.8 Advanced processing 81.0 71.4 83.6 77.4 77.1 76.6 75.8 76.2 3.1 Primary processing . 82.3 66.8 89.0 79.5 80.8 80.2 79.9 80.2 2.0 Mining 87.4 80.6 87.2 90.4 86.8 86.1 84.7 84.9 .8 Utilities 86.7 76.2 92.3 81.6 85.9 83.4 82.9 82.4 1.1 1. Seasonally adjusted. r Revised, 2. Change from preceding month to month indicated. p Preliminary. When analyzed by market group, the data show durables was led by the increase in the output of that the output of durable consumer goods exclud- parts and materials used by the motor vehicle ining automotive products rose 1.3 percent in Febru- dustry; the production of equipment parts rose, but ary, although it remained below its level of late last the output of basic metals, particularly steel, desummer; a rise in the production of appliances was creased. Within nondurables, the production of the major source of the increase. The production of both paper and chemical materials posted sizable nondurable consumer goods edged up in February; gains. By contrast, the output of energy materials gains in the indexes for food and consumer chemi- remained weak, in part, because of the relatively cals were nearly offset by declines in those for mild winter. clothing, consumer paper products, and energy for When analyzed by industry group, the data show residential use. The output of business equipment that manufacturing output increased 0.7 percent in excluding motor vehicles rose 0.3 percent, with February and that capacity utilization at factories most major sectors posting gains. The index for rose 0.4 percentage point, to 77.4 percent. The construction supplies rose slightly for a second level of utilization for manufacturing in February month in February but, on balance, has changed was still more than 1 percentage point below the little since last fall. rate of last summer. The operating rates for both The production of materials increased 0.6 per- advanced and primary processing industries rose in cent last month after having declined sharply in February, but within these sectors, over-the-month each of the three preceding months. The gain in changes were mixed. Among primary processing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

328 Federal Reserve Bulletin • May 1992 industries, output increased most in fabricated the operating rates in these industries remained metals, in paper, and in stone, clay, and glass; relatively low. however, the production of steel and lumber fell The output of mines rose 0.3 percent in Februsharply. Despite their February gains, the utiliza- ary, and the output of utilities fell 0.5 percent. The tion rates both in paper and in stone, clay, and glass utilization rates for both mining and utilities also were well below the levels of last summer. Within were significantly below the rates posted during the the advanced processing industries, motor vehicle middle of last year. and nonelectrical machinery production rose, but Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

329 Statement to the Congress Statement by Alan Greenspan, Chairman, Board 1980s of certain kinds of real assets and even of Governors of the Federal Reserve System, faster growth of debt and leverage. before the Joint Economic Committee, U.S. Rapid rates of debt-financed asset accumula- Congress, March 3, 1992 tion were widespread during the 1980s. In the business sector, a primary example is that of commercial real estate, where overbuilding was I am pleased to appear here today. Two weeks propelled by a combination of relatively low ago, the Federal Reserve submitted its semivacancy rates early in the decade and generous annual report on monetary policy to the Congress.1 That report covered very specifically the depreciation provisions. Meanwhile, a dramatic increase in leverage among corporations was System's expectations for money and credit associated with a wave of mergers and buyouts. growth in 1992, as well as our forecast for The debt burdens of households also rose markeconomic growth and inflation. Today, I would edly over the course of the decade, as purchases like to focus on some of the broad considerations of motor vehicles and other durables ran at high bearing on the outlook. levels for an extended period and homebuying in The performance of the economy clearly has some parts of the country soared. been disappointing. The recovery in business To a degree, the increase in leverage was a activity since last spring has been anemic, job natural and economically efficient outcome of losses have continued to mount, and confidence deregulation and financial innovation. It also may has sunk to depressed levels. As we look ahead, have reflected a lingering inflation psychology there are a few hopeful signs—but, at this stage, from the 1970s—that is, people may have exthey are quite tentative. Anecdotal reports and pected rapid increases in prices, especially those the early data on activity since the turn of the of specific real assets, that would make debtyear suggest that spending is starting to firm in financed purchases profitable. Many analysts some sectors. And, in the financial markets, the were well aware at the time of the increasingly cumulative effects of the Federal Reserve's easdisturbing trends in debt and leverage. But in ing actions appear to be manifesting themselves retrospect, as the values of real property and in some strengthening of late in the money supother assets stagnated or declined, the mismatch ply. These are the types of indications one looks between debt, on the one hand, and the likely for when business activity is picking up. But, as prospects for incomes and asset values, on the I have indicated previously, there are some exother, turned out to be even greater than many traordinary forces at work in the economy that had perceived. add an exceptional measure of uncertainty to the In part, our current economic adjustments can current picture. be seen as arising out of a process in which debt I refer, in particular, to the sizable adjustments is being realigned with a more realistic outlook to business and household balance sheets now for incomes and asset values. Faced with mountunder way. These adjustments, which are withing financial problems and uncertainty about the out parallel in the postwar period, are a consefuture, one's natural reaction is to withdraw from quence of the enormous accumulation during the commitments when possible and to conserve and even build savings and capital. Not surprisingly, many households and businesses have taken measures over the past few years to reduce 1. See "Monetary Policy Report to the Congress," Federal drains on their cash flow and to lower their Reserve Bulletin, vol. 78 (April 1992), pp. 223-41. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

330 Federal Reserve Bulletin • May 1992 exposures to further surprises. Part of the pro- index of defense and space output has fallen cess has involved unusually conservative spend- roughly 15 percent since 1987. As you know, the ing patterns, and part has involved the early 1990 budget agreement established caps on destages of a restructuring of financial positions. fense funding that imply sizable further reduc- The monetary policy actions of recent quarters tions over the next several years, and the end of have helped to reduce the debt service burdens the Cold War raises the prospect that even larger of households and businesses and are encourag- cuts could be made without undue risk to our ing them to shore up their financial positions. national security. Moreover, the recently announced cut in reserve From a longer-run perspective, the defense requirements on transactions deposits should cutbacks carry substantial benefits for the U.S. free up some funds for lending and should economy. By freeing up resources that could help—at least to some extent—to break the grip then be devoted to improving the nation's stock of the so-called "credit crunch," which has of productive physical and human capital, these imposed an undue financial constraint on the cutbacks should ultimately lead to better producactivities of many firms. tivity performance over time. In the short run, of Businesses have been taking steps to reduce course, lower defense spending is a depressant leverage, enhance liquidity, and cut down on on economic activity and on jobs and incomes. interest obligations to lower their exposures to For industries and regions that depend heavily on risk. In addition, they have been adjusting pro- military spending, the dislocations could well be duction promptly in an attempt to keep invento- sizable. ries in line and have cut back staffing levels and One sector that has been a bright spot as the closed inefficient plants. Meanwhile, households recovery has struggled to take hold has been have restrained their expenditures and have paid exports, which have benefited from both the down debt to reduce interest expenses. Also, as cumulated gains in U.S. price competitiveness long-term interest rates have declined, both bus- and income growth in our trading partners. The inesses and households have refinanced mort- economies of Mexico, several of the other Latin gages and other loans. American countries, and the newly industrialized Unfortunately, history provides little guidance nations in Asia have been notable areas of in assessing how much additional adjustment to strength. balance sheets is in store—and how fast it is In contrast, the economic performances of the likely to proceed. Our best guess is that this major foreign industrial countries in the second unusual restraint on economic activity should half of last year generally were disappointing. begin to dissipate in the reasonably near future. Real output in Germany and Japan, which had But the uncertainties in this regard are enormous been growing extraordinarily rapidly earlier in and add significantly to the typical risks in the the year, slowed sharply. Meanwhile, in Canada economic outlook. and Great Britain, recovery from recession is In any event, the restructuring of financial proving elusive. Several of these countries have positions is not the only restraint on economic been struggling with problems of debt burdens activity in the near term. The activities of state and excess leveraging similar to those in the and local governments have been atypically con- United States. strained by budget pressures. More important, Current economic indicators are lackluster in we are concurrently coping with a sizable adjust- almost all the major industrial countries. Conment in the area of national defense. The cut- sumer spending is weak and confidence is low, backs in military spending have been under way while firms are continuing to run down inventosince the mid-1980s, when real budget authority ries and appear to be hesitant to spend on new turned down and orders for defense capital goods plant and equipment. Nonetheless, the odds are flattened out. All told, real budget authority for good that activity will strengthen over the course defense has fallen more than 20 percent from its of the year. In Canada, the United Kingdom, and 1985 peak. Similar trends have been evident in Japan, the central banks have eased monetary the data on industrial production, where the conditions. These actions not only should facili- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to the Congress 331 tate the portfolio adjustments under way in many the sizable uncertainties in the outlook for 1992. countries but also should contribute to rebounds In particular, the ongoing process of balance sheet in interest-sensitive spending. restructuring may affect spending, as well as the In Germany, monetary conditions remain tight relationship of various measures of money and as wage pressures threaten to add to inflation and credit to spending, in ways we are not anticipatmoney growth continues at rates above the ing. Judging from the historical evidence, the Bundesbank's current targets. However, the adopted growth ranges for the monetary aggreending of an income tax surcharge in the middle gates should support our projections for economic of this year should help to boost consumption. activity—and could accommodate an even stron- And in the five new states (former East Germa- ger recovery. Nonetheless, we will remain sensiny), construction and investment spending are tive to signs that the anticipated pickup in busivigorous and may well spark the turnaround in ness activity is not emerging and will be prepared production in that region that has been antici- to adjust money growth, as well as our stance in pated since the Wall came down. reserve markets, should the need arise. If, in fact, developments in the industrialized Our focus, quite naturally and appropriately, countries materialize along these lines—and if has been on the immediate situation—the causes growth in our other trading partners remains of the recent slowdown and the prospects of robust—exports should continue to bolster pro- returning to solid growth this year. However, as duction here at home. Such an outcome would we move forward, we cannot lose sight of our elevate the likelihood of a moderate upturn in longer-run objectives. Much of the current diffi- U.S. business activity in coming quarters. culty and dissatisfaction with the U.S. economy The recent news on U.S. inflation has been comes from a sense that it is not delivering the quite favorable. Prices for a wide range of goods kind of long-term improvement in living stanand services have decelerated notably over the dards we have come to expect. The Federal past few quarters, and a further slowing in un- Reserve can help to address this deficiency by derlying price pressures is expected. Moreover, providing a stable financial background that foswith appropriate economic policies, the improve- ters saving and investment and encourages sound ment in the inflation trend should extend into balance sheet structures. The Congress can help 1993—even, I would hope, with stronger growth by adopting a budget that is geared to the longerin real activity than now appears in prospect for run needs of the economy; at a minimum, that the current year. entails maintaining a commitment to the elimina- In formulating its objectives for monetary pol- tion of the structural budget deficit over the icy last month, the Federal Open Market Com- coming years. Together, we can achieve the mittee obviously had to grapple with the anoma- strong economic performance that our fellow lous monetary behavior of the past two years and citizens rightly expect. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

332 Announcements MEETING OF CONSUMER ADVISORY PROPOSED ACTIONS COUNCIL The Federal Reserve Board on March 5, 1992, The Federal Reserve Board announced that its Con- formally requested public comment on two propossumer Advisory Council held a meeting on Thurs- als to change the way depository institutions comday, March 26. The council's function is to advise pute and maintain their reserve requirements. Comthe Board on the exercise of the Board's responsi- ments were requested by April 6. bilities under the Consumer Credit Protection Act and on other matters on which the Board seeks its advice. ANNUAL REPORT: PUBLICATION The 78th Annual Report, 1991, of the Board of Governors of the Federal Reserve System, cover- ISSUANCE OF POLICY STATEMENT ing operations for the calendar year 1991, is available for distribution. Copies may be obtained on The Federal Reserve Board issued on March 6, request to Publications Services, mail stop 138, 1992, a policy statement concerning the need for Board of Governors of the Federal Reserve Sysinstitutions to analyze the geographic distribution tem, Washington, DC 20551. A separately printed of their lending patterns as part of their responsicompanion document, entitled Annual Report: bilities under the Community Reinvestment Act Budget Review, 1991-92, describes the budgeted (CRA). expenses of the Federal Reserve System for 1992 The policy statement had previously been apand compares them with expenses for 1990 and proved by the Federal Financial Institutions Exam- 1991; it is also available from Publications ination Council and adopted by the Federal Deposit Services. Insurance Corporation, the Comptroller of the Currency, and the Office of Thrift Supervision. According to the policy statement, analyzing the CHANGES IN BOARD STAFF geographic distribution of credit applications, credit extensions, and credit denials is an integral part of The Board of Governors announced on March 9, effective CRA management. 1992, the appointment of Lynn S. Fox and Winthrop P. Hambley as Special Assistants to the Board for Congressional Liaison. RESCISSION OF POLICY STATEMENT Mr. Hambley joined the Board's staff in January 1989 as a Congressional Liaison Assistant. Before The Federal Reserve Board issued on March 19, joining the Board, he served as legislative assistant 1992, an interpretation rescinding its policy state- for eight years to Senator Paul Trible. Mr. Hambley ment requiring applications for relocations of a holds a degree in history from Columbia University subsidiary bank to another state. Accordingly, the and was in the doctoral program in economics at Board has determined not to require the filing of an the University of Virginia. application for Board approval under the Bank Ms. Fox returns to the Board after having served Holding Company Act (BHC Act) for national as a Special Assistant to the Board in the Congresbank relocations, except in situations in which the sional Liaison Office from January 1986 to Septem- Board has found an evasion of the BHC Act. ber 1988. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

333 Legal Developments FINAL RULE—AMENDMENT TO REGULATION D Category Reserve requirement The Board of Governors is amending 12 C.F.R. Part 204, its Regulation D (Reserve Requirements of De- Net transaction accounts1 pository Institutions) to reduce the reserves required $0 to $42.2 million 3 percent of amount Over $42.2 million $1,226,000 plus 10 percent of on net transaction account balances over $42.2 million amount over $42.2 million Nonpersonal time deposits 0 percent from the current level of 12 percent to 10 percent, Eurocurrency liabilities 0 percent based on a determination that the current level of reserves required on these liabilities is in excess of the 1. Dollar amounts do not reflect the adjustment to be made in the next paragraph. level necessary for the conduct of monetary policy, and that a reduction in the level of required reserves will provide an impetus for bank lending and overall ORDERS ISSUED UNDER BANK HOLDING economic activity by freeing funds now held as re- COMPANY ACT serves and facilitating depository institutions' access Orders Issued Under Section 3 of the Bank to the capital markets. Holding Company Act For depository institutions that report deposits weekly, this reduction will become effective for the Morrill Bancshares, Inc. reserve maintenance period beginning April 2, 1992. Sabetha, Kansas For depository institutions reporting quarterly, the Morrill & Janes Bancshares, Inc. reduction will be operative for the reserve mainte- Hiawatha, Kansas nance period starting April 16, 1992. Effective April 2, 1992, 12 C.F.R. Part 204 is Order Approving Acquisition of a Bank Holding amended as follows: Company Part 204—Reserve Requirements of Depository Morrill Bancshares, Inc., Sabetha, Kansas ("Mor- Institutions rill"), and its subsidiary, Morrill & Janes Bancshares, Inc., Hiawatha, Kansas ("M & J Bancshares"), both bank holding companies within the meaning of the 1. The authority citation for 12 C.F.R. Part 204 con- Bank Holding Company Act ("BHC Act"), have tinues to read as follows: applied under section 3 of the BHC Act (12 U.S.C. § 1842) to acquire Robinson Bancshares, Inc., Robin- Authority: Sections 11(a), 11(c), 19, 25, 25(a) of the son, Kansas ("Robinson"), and thereby indirectly Federal Reserve Act (12 U.S.C. 248(a), 248(c), 371a, acquire Bank of Robinson, also of Robinson, Kansas.1 371b, 461, 601, 611); section 7 of the International Notice of the applications, affording interested per- Banking Act of 1978 (12 U.S.C. 3105); and section 411 sons an opportunity to submit comments, has been duly of the Garn-St Germain Depository Institutions Act of published (57 Federal Register 6504 (1992)). The time 1982 (12 U.S.C. 461). for filing comments has expired, and the Board has considered the applications and all comments received 2. Section 204.9 is amended by revising paragraph in light of the factors set forth in section 3(c) of the BHC (a)(1) to read as follows: Act. Section 204.9—Reserve requirement ratios. 1. Morrill will acquire Robinson through the bank subsidiary of M & J Bancshares, Morrill and Janes Bank and Trust Company, (a)(1) Reserve percentages. The following reserve Hiawatha, Kansas ("Trust Company"). Trust Company will purchase ratios are prescribed for all depository institutions, all the shares of Robinson and immediately thereafter Robinson and its subsidiary bank will be merged with and into Trust Company. The Edge and Agreement corporations, and United merger is subject to the approval of the Federal Deposit Insurance States branches and agencies of foreign banks: Corporation under the Bank Merger Act (12 U.S.C. § 1828). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

334 Federal Reserve Bulletin • May 1992 Morrill and M & J Bancshares (collectively "Appli- First, the market has experienced significant economic cants") constitute the 61st largest commercial banking decline in recent years. The population of Brown organization in Kansas, controlling $78.3 million in County, Kansas, which comprises the bulk of the deposits in the state, representing less than 1 percent market, declined from approximately 14,250 to 13,470 of total deposits in commercial banking organizations between 1980 and 1990, the tenth largest decline in in Kansas.2 Robinson is the 441st largest commercial population of the 35 rural counties in Kansas with banking organization in Kansas, controlling $8.0 mil- populations greater than 10,000 during that period. This lion in deposits in the state, representing less than decrease compares unfavorably with the state's overall 1 percent of total deposits in commercial banking population increase during the same period. In addiorganizations in the state. Upon consummation of this tion, a study commissioned by the state of Kansas proposal, Applicants would become the 50th largest shows a 20 percent drop in total employment in Brown commercial banking organization in the state, control- County between 1980 and 1988 and ranks Brown ling $86.3 million in deposits, representing less than County last of all the counties in the state in terms of 1 percent of total deposits in commercial banking overall economic health and prospects.6 These and organizations in Kansas. other facts regarding the market suggest that the ability Applicants and Robinson operate in the Hiawatha, of the Hiawatha banking market to support a large Kansas banking market.3 Applicants own the largest number of competitors has deteriorated.7 depository institution in that market, controlling de- The Board also has considered that seven commerposits of $78.3 million, representing approximately 32 cial banking organizations and one savings association percent of total deposits in depository institutions in would continue to operate in the market upon consumthe market.4 Robinson is the eighth largest depository mation of this proposal. Based on these and the other institution in the market, controlling $8.0 million in facts of record, the Board has determined that condeposits, representing approximately 3.3 percent of summation of the proposal is not likely to result in a total deposits in depository institutions in the market. significantly adverse effect on competition in the Hia- Upon consummation of this proposal, Applicants watha banking market. would remain the largest depository institution in the The financial and managerial resources and future market, controlling approximately 35.3 percent of total prospects of Applicants and their subsidiary banks, deposits in depository institutions in the market. The and Robinson and its subsidiary bank are consistent Hiawatha, Kansas banking market would remain with approval, as are supervisory factors. The Board highly concentrated upon consummation of this pro- also finds that considerations relating to the conveposal and the Herfindahl-Hirschman Index ("HHI") nience and needs of the communities to be served are for the market would increase by 210 points to 2227.5 consistent with approval. A number of characteristics of the Hiawatha banking Based on the foregoing and other facts of record, the market indicate that the increase in concentration levels Board has determined that the application should be, as measured by the HHI for this market overstates the and hereby is, approved. The acquisition shall not be effect of this proposal on competition in this market. consummated before the thirtieth calendar day following the effective date of this Order, or later than three months after the effective date of this Order, unless 2. Data are as of September 30, 1991. such period is extended for good cause by the Board or 3. The Hiawatha, Kansas banking market is defined as Brown by the Federal Reserve Bank of Kansas City, acting County, Kansas, plus the town of Sabetha in Nemaha County, pursuant to delegated authority. Kansas. 4. In this context, depository institutions include commercial banks, By order of the Board of Governors, effective savings banks and savings associations. Market share data are based March 11, 1992. on calculations in which the deposits of thrift institutions are included at 50 percent. The Board previously has indicated that thrift institutions have become, or have the potential to become, major competi- Voting for this action: Chairman Greenspan and Governors tors of commercial banks. See Midwest Financial Group, 75 Federal Mullins, Angell, Kelley, LaWare, Lindsey, and Phillips. Reserve Bulletin 386 (1989); National City Corporation, 70 Federal Reserve Bulletin 743 (1984). 5. Under the revised Department of Justice Merger Guidelines, 49 JENNIFER J. JOHNSON Federal Register 26,823 (June 29, 1984), a market in which the Associate Secretary of the Board post-merger HHI is above 1800 is considered highly concentrated. The Department of Justice has informed the Board that a bank merger or acquisition generally will not be challenged (in the absence of other factors indicating anticompetitive effects) unless the post-merger HHI 6. The 1989 study, Rural Development Action Plan, was prepared is at least 1800 and the merger increases the HHI by at least 200 for the Kansas State Legislature by Kansas, Inc., a public-private points. The Justice Department has stated that the higher than normal partnership created by the Kansas State Legislature to advise it on the HHI thresholds for screening bank mergers and acquisitions for state's economic health. anticompetitive effects implicitly recognizes the competitive effect of 7. See, e.g., First Formoso, Inc., 76 Federal Reserve Bulletin 541 limited-purpose lenders and other non-depository financial entities. (1990). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 335 Orders Issued Under Section 4 of the Bank First Union thus proposes that Company would not Holding Company Act act as a riskless principal in selling securities at the order of a customer that is the issuer of the securities First Union Corporation to be sold or in any transaction where Company has a Charlotte, North Carolina contractual agreement to place the securities as agent of the issuer. Company also would not act as a riskless Order Approving Application to Act as a Riskless principal in any transaction involving a security for Principal in Buying and Selling Securities which it makes a market. The Board has previously determined by order that, First Union Corporation, Charlotte, North Carolina subject to certain prudential limitations established to ("First Union"), a bank holding company within the address the potential for conflicts of interests, unsound meaning of the Bank Holding Company Act ("BHC banking practices or other adverse effects, the pro- Act"), has applied for the Board's approval under posed riskless principal activities are so closely related section 4(c)(8) of the BHC Act (12 U.S.C. to banking as to be a proper incident thereto within the § 1843(c)(8)) for its indirect subsidiary, First Union meaning of section 4(c)(8) of the BHC Act. The Board Securities, Inc., Charlotte, North Carolina ("Compa- also has determined that acting as agent in purchasing ny"), to buy and sell securities on the order of and selling securities on the order of investors as a investors as a "riskless principal." riskless principal does not constitute underwriting and Notice of the application, affording interested per- dealing in securities for purposes of section 20 of the sons an opportunity to submit comments on the pro- Glass-Steagall Act, and that revenue derived from this posal, has been published (56 Federal Register 27,754 activity is not subject to the 10 percent revenue (1991)). The time for filing comments has expired, and limitation on ineligible securities underwriting and the Board has considered the application and all dealing. First Union has committed that Company will comments received in light of the public interest conduct its riskless principal activities using the same factors set forth in section 4(c)(8) of the BHC Act. methods and procedures, and subject to all of the prudential limitations, approved by the Board in the First Union has total consolidated assets of approximately $46.1 billion.1 It owns five bank subsidiaries in Bankers Trust and J.P. Morgan orders,4 including the comprehensive framework of restrictions designed to Florida, Georgia, South Carolina, North Carolina, and avoid potential conflicts of interests, unsound banking Tennessee. First Union has received Board approval practices and other adverse effects imposed by the to engage in a broad range of nonbanking activities, Board in connection with underwriting and dealing in including engaging through Company in underwriting securities, as modified in part by the J.P. Morgan and and dealing in, to a limited extent, debt and equity Bankers Trust orders.5 securities that are not eligible to be underwritten by a state member bank ("ineligible securities").2 Com- In every case involving a nonbanking acquisition by pany is and will continue to be a broker-dealer regis- a bank holding company under section 4 of the BHC tered with the Securities and Exchange Commission Act, the Board considers the financial condition and and subject to the record-keeping, reporting, fiduciary resources of the applicant and its subsidiaries and the standards, and other requirements of the Securities Exchange Act of 1934, the New York Stock Exchange, and the National Association of Securities Dealers. "Riskless principal" is the term used in the securities business to refer to a transaction in which a 4. See J.P. Morgan and Company, Inc., 76 Federal Reserve Bulletin 26 (1990) ("J.P. Morgan"); Bankers Trust New York Corpobroker-dealer, after receiving an order to buy (or sell) ration, 75 Federal Reserve Bulletin 829 (1989) ("Bankers Trust"). As a security from a customer, purchases (or sells) the detailed more fully in those orders, in addition to the commitments security for its own account to offset a contemporane- imposed by the Board in connection with underwriting and dealing in securities, Company will maintain specific records that will clearly ous sale to (or purchase from) the customer.3 Riskless identify all riskless principal transactions, and Company will not principal transactions are understood in the industry to engage in any riskless principal transactions for any securities carried include only transactions in the secondary market. in its inventory. When acting as a riskless principal, Company will only engage in transactions in the secondary market, and not at the order of a customer that is the issuer of the securities to be sold, will not act as riskless principal in any transaction involving a security for which it makes a market, nor hold itself out as making a market in the 1. Data are as of December 31, 1991. securities that it buys and sells as a riskless principal. Moreover, 2. See First Union Corporation, 75 Federal Reserve Bulletin 645 Company will not engage in riskless principal transactions on behalf of (1989); 76 Federal Reserve Bulletin 174 (1990). its foreign affiliates that engage in securities dealing activities outside 3. See Securities and Exchange Commission Rule 10b-10. 17 C.F.R. the United States. 240.1Ob-10(a)(8)(i). 5. See Bankers Trust at 834; J.P. Morgan at 27. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

336 Federal Reserve Bulletin • May 1992 effect of the transaction on these resources.6 Based on Voting for this action: Chairman Greenspan and Governors the facts of this case, the Board concludes that finan- Mullins, Angell, Kelley, Lindsey, and Phillips. Absent and cial considerations are consistent with approval of this not voting: Governor La Ware. application. The managerial resources of First Union JENNIFER J. JOHNSON are also consistent with approval. Associate Secretary of the Board Consummation of this proposal would provide added convenience to First Union's customers by U.S. Trust Corporation allowing the provision of a wider range of services by New York, New York a single entity. In addition, the Board expects that the de novo entry of First Union into the market for these Order Approving Application to Provide Investment services would increase the level of competition Advisory and Securities Brokerage Services among providers of these services. Under the frame- Individually and on a Combined Basis, and to Act as work established in this and prior decisions, consuma "Riskless Principal" in Buying and Selling mation of this proposal is not likely to result in an any Securities significantly adverse effects, such as undue concentration of resources, decreased or unfair competition, U.S. Trust Corporation, New York, New York ("Apconflicts of interests, or unsound banking practices. plicant"), a bank holding company within the meaning Accordingly, the Board has determined that the perof the Bank Holding Company Act ("BHC Act"), has formance of the proposed activities by First Union can applied under section 4(c)(8) of the BHC Act (12 U.S.C. reasonably be expected to produce public benefits that § 1843(c)(8)), to acquire Delafield, Harvey, Tabell Inc., would outweigh adverse effects under the proper inci- Princeton, New Jersey ("Company"),1 and thereby dent to banking standard of section 4(c)(8) of the BHC engage, throughout the United States, in the following Act. activities: Based on all the facts of record, including commit- (1) providing portfolio investment advice and manments made by First Union, and subject to all of the agement to individual, corporate and institutional terms and conditions set forth above and in the aboveinvestors, and furnishing general economic infornoted Board orders, the Board has determined that mation and advice and general economic statis- First Union's application, should be, and hereby is, tical forecasting services pursuant to sections approved. The Board's decision is specifically condi- 225.25(b)(4)(iii) and (iv) of the Board's Regulationed on continued compliance with all of the comtion Y; mitments made in this case, including the commit- (2) providing securities brokerage services pursuant ments discussed in this Order. The Board's to section 225.25(b)(15) of Regulation Y; determination is also subject to all of the conditions set (3) providing investment advisory and securities forth in the Board's Regulation Y, including those in brokerage services on a combined basis to institusections 225.4(d) and 225.23(b), and to the Board's tional and retail customers ("full-service brokerauthority to require modification or termination of the age"); including exercising limited investment disactivities of a bank holding company or any of its cretion on behalf of institutional customers; and subsidiaries as the Board finds necessary to assure (4) purchasing and selling all types of securities on compliance with, and to prevent evasion of, the prothe order of investors as a "riskless principal." visions of the BHC Act and the board's regulations and orders issued thereunder. These commitments are Notice of the application, affording interested perconditions imposed in writing by the Board in connecsons an opportunity to submit comments, has been tion with its findings and decision, and may be enduly published (57 Federal Register 4632 (1992)). The forced in proceedings under applicable law. time for filing comments has expired and the Board has This transaction shall not be consummated later considered the application and all comments received than three months after the effective date of this in light of the public interest factors set forth in section Order, unless such period is extended for good cause 4(c)(8) of the BHC Act. by the Board or by the Federal Reserve Bank of Applicant, with approximately $2.6 billion in con- Richmond, pursuant to delegated authority. solidated assets, operates banking subsidiaries in New By order of the Board of Governors, effective York and Texas. Applicant is the 19th largest banking March 17, 1992. 6. 12 C.F.R. 225.24; The Fuji Bank, Limited, 75 Federal Reserve 1. The acquisition will be accomplished through the merger of Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal Reserve Applicant's wholly owned subsidiary, ACQ, Inc., into Company with Bulletin 155, 156 (1987). Company surviving the merger. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 337 organization in New York, and controls less than one The Board previously has determined by order that, percent of the total deposits in commercial banks in subject to certain prudential limitations established to Texas.2 Applicant engages directly and through sub- address the potential for conflicts of interests, unsound sidiaries in a variety of permissible nonbanking activ- banking practices or other adverse effects, "riskless ities. Company is a registered investment advisor principal" activities are so closely related to banking under the Investment Company Act of 1940, and a as to be a proper incident thereto within the meaning broker-dealer registered with the Securities Exchange of section 4(c)(8) of the BHC Act. The Board also has Commission. determined that acting as agent in purchasing and The Board previously has determined by regulation selling securities on the order of investors as a "riskthat the provision of the proposed investment advisory less principal" does not constitute underwriting and and securities brokerage services individually is a dealing in securities for purposes of section 20 of the permissible nonbanking activity for bank holding com- Glass-Steagall Act.6 Applicant has committed that panies under section 4(c)(8) of the BHC Act and Company will conduct its "riskless principal" activisections 225.25(b)(4) and (b)(15) of Regulation Y. ties using the same methods and procedures, and 12 C.F.R. 225.25(b)(4)(iii) and (iv); 225.25(b)(15). Ap- subject to all of the prudential limitations approved by plicant proposes that Company would provide these the Board in the Bankers Trust and J.P. Morgan services subject to the limitations contained in Regu- orders.7 lation Y. Under section 4(c)(8) of the BHC Act, the Board is The Board also has determined by order that full- required to determine that the performance of the service brokerage is a permissible nonbanking activity proposed activities by Applicant "can reasonably be for bank holding companies.3 Applicant proposes to expected to produce benefits to the public . . . that engage in full-service brokerage in accordance with all outweigh possible adverse effects, such as undue of the conditions set forth in these orders. In addition, concentration of resources, decreased or unfair com- Company would provide discretionary investment petition, conflicts of interests, or unsound banking management services for institutional customers only, practices." 12 U.S.C. § 1843(c)(8). under terms and conditions previously approved by Under the framework established in this and prior the Board.4 decisions, consummation of this proposal is not likely Applicant also proposes that Company act as a to result in any significantly adverse effects, such as "riskless principal" in buying and selling securities. undue concentration of resources, decreased or unfair "Riskless principal" is the term used in the securities competition, conflicts of interests, or unsound banking business to refer to a transaction in which a broker- practices. Based on the foregoing and other facts of dealer, after receiving an order to buy (or sell) a record, and subject to the commitments made by security from a customer, purchases (or sells) the Applicant, the Board has determined that performance security for its own account to offset a contemporane- of the proposed activities by Applicant can reasonably ous sale to (or purchase from) the customer.5 Riskless be expected to produce public benefits which would principal transactions are understood in the industry to outweigh adverse effects under the proper incident to include only transactions in the secondary market. banking standard of section 4(c)(8) of the BHC Act. Applicant thus proposes that Company would not act The Board also concludes that the financial consideras a riskless principal in selling securities at the order ations and managerial resources of Applicant are conof a customer that is the issuer of the securities to be sistent with approval. sold or in any transaction where Company has a contractual agreement to place the securities as agent of the issuer. 6. See J.P. Morgan and Company, Inc., 76 Federal Reserve Bulletin 26 (1990)("7.P. Morgan"); Bankers Trust New York Corporation, 75 Federal Reserve Bulletin 829 (1989)("Bankers Trust"). 2. Asset data and rankings are as of June 30, 1991. 7. For the reasons discussed in these orders, Applicant has com- 3. See PNC Financial Corporation, 75 Federal Reserve Bulletin 396 mitted as follows: Company will maintain specific records that will (1989); Bankers Trust New York Corporation, 74 Federal Reserve clearly identify all riskless principal transactions, and Company will Bulletin 695 (1988). not engage in any riskless principal transactions for any securities 4. See The Chase Manhattan Corporation, 14 Federal Reserve carried in its inventory. When acting as a riskless principal, Company Bulletin 704 (1988); J.P. Morgan and Company, Inc., 73 Federal will only engage in transactions in the secondary market, and not at Reserve Bulletin 810 (1987). Such discretionary investment manage- the order of a customer that is the issuer of the securities to be sold, ment services will be provided for institutional customers only, as this will not act as riskless principal in any transaction involving a security term has been defined in previous Board orders relating to this for which it makes a market, nor hold itself out as making a market in activity. See Bank of New England Corporation, 74 Federal Reserve the securities that it buys and sells as a riskless principal. Moreover, Bulletin 700 (1988). Company will not engage in riskless principal transactions on behalf of 5. See Securities and Exchange Commission Rule 10b-10. 17 C.F.R. its foreign affiliates that engage in securities dealing activities outside 240.10b-10(a)(8)(i). the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

338 Federal Reserve Bulletin • May 1992 For these reasons, the Board has determined to, and under section 4(c)(8) of the BHC Act to acquire the hereby does, approve this application. The Board's nonbanking subsidiaries of Security Pacific, including decision is specifically conditioned upon compliance the subsidiaries listed in Appendix A. with all of the commitments made in this case, includ- In addition, BankAmerica has given notice pursuant ing the commitments discussed in this order and the to section 4(c)(13) of the BHC Act (12 U.S.C. conditions set forth in the above-noted Board orders. § 1843(c)(13)) and section 211 of the Board's Regula- The Board's determination is also subject to all of the tion K (12 C.F.R. 211), to acquire all of the foreign conditions set forth in Regulation Y, including those in subsidiaries, joint ventures and portfolio investments sections 225.4(d) and 225.23(b), and to the Board's of Security Pacific held under section 4(c)(13) of the authority to require modification or termination of the BHC Act. Bank of America National Trust and Savactivities of a bank holding company or any of its ings Association, San Francisco, California ("Bank of subsidiaries as the Board finds necessary to assure America"), a subsidiary bank of BankAmerica, has compliance with, and to prevent evasion of, the pro- provided notice pursuant to section 25A of the Federal visions of the BHC Act and the Board's regulations Reserve Act (12 U.S.C. §611 et seq.) and section and orders issued thereunder. The commitments and 211.4 of Regulation K (12 C.F.R. 211.4), to acquire conditions relied on by the Board in this case are Security Pacific International Bank, New York, New conditions imposed in writing by the Board in connec- York, and Security Pacific Overseas Corp., Los Antion with its findings and decisions and may be en- geles, California, both corporations chartered under forced in proceedings under applicable law. section 25A of the Federal Reserve Act (the "Edge This transaction shall not be consummated later Act"), and all of their foreign subsidiaries, joint venthan three months after the effective date of this tures and portfolio investments. Order, unless such period is extended for good cause Bank of America also has provided notice pursuant by the Board or by the Federal Reserve Bank of New to section 25 of the Federal Reserve Act (12 U.S.C. York, pursuant to delegated authority. § 601 et seq.) and section 211.3(a)(3) of Regulation K By order of the Board of Governors, effective of its intent to continue the operation of the foreign March 2, 1992. branch of Security Pacific National Bank located in Nassau, Bahamas, and, pursuant to section 211.5 of Voting for this action: Chairman Greenspan and Governors Regulation K, to continue the operation of the foreign Mullins, Angell, LaWare, Lindsey, and Phillips. Absent and subsidiaries of Security Pacific National Bank. Seattle not voting: Governor Kelley. First-National Bank, Seattle, Washington ("SeaFirst"), another subsidiary bank of BankAmerica, has pro- JENNIFER J. JOHNSON vided notice, pursuant to section 25 of the Federal Associate Secretary of the Board Reserve Act (12 U.S.C. § 601 et seq.) and section 211.3(a)(3) of Regulation K, to acquire the foreign Orders Issued Under Sections 3 and 4 of the branches of Security Pacific Bank Washington, N.A., Bank Holding Company Act located in Grand Cayman, Cayman Islands and Kaohsuing, Taiwan. BankAmerica Corporation Notice of the applications, affording interested per- San Francisco, California sons an opportunity to submit comments, has been published (56 Federal Register 67,622 (1991)). The Order Approving the Merger of Bank Holding Board extended the public comment period in this Companies case, providing interested persons a total of over 77 days to submit written comments regarding this pro- BankAmerica Corporation, San Francisco, California ("BankAmerica"), a bank holding company within the meaning of the Bank Holding Company Act ("BHC Act"), has applied under section 3 of the BHC Act (12 U.S.C. § 1842) to merge with Security Pacific subsidiary of BankAmerica, has applied under section 3(a)(3) of the Corporation, Los Angeles, California ("Security Pa- BHC Act to acquire Security Pacific Bank Nevada, N.A., Las Vegas, cific"), also a bank holding company, and thereby to Nevada. In connection with the proposed merger of BankAmerica with Security Pacific, BankAmerica also has requested Board apacquire the banking subsidiaries of Security Pacific proval under section 3 of the BHC Act to acquire an option to listed in Appendix A.1 BankAmerica also has applied purchase up to 19.9 percent of the voting shares of Security Pacific. Security Pacific has requested Board approval under section 3 of the BHC Act to acquire an option to purchase up to 9.95 percent of BankAmerica's voting shares. These options will become moot upon 1. In connection with BankAmerica's application, First Nevada consummation of BankAmerica's application to merge with Security Development Corporation, San Francisco, California, a wholly owned Pacific. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 339 posal (Press Release dated January 28, 1992).2 In light the acquisition of ... a State bank by an out-of-State of the size and geographic scope of the resulting bank holding company is specifically authorized by the organization, and the extensive public interest in this statute laws of the State in which [the] bank is located, proposal, the Board also held public meetings regard- by language to that effect and not merely by implicaing these applications at four sites to permit interested tion."7 For purposes of the Douglas Amendment, the persons an opportunity to present written information home state of BankAmerica is California. The Board and oral testimony directly to members of the Federal has previously determined that the interstate statutes Reserve System's staff. These meetings were held of Alaska, Arizona, Idaho, Nevada, New York, Oreduring the week of January 13, 1992, in Los Angeles, gon, Texas, and Washington permit a bank holding California; San Francisco, California; Seattle, Wash- company located in California to acquire banking ington; and Phoenix, Arizona. The time for filing organizations in those states.8 In considering this comments has expired, and the Board has considered proposal, the Board has reviewed the interstate bankthe applications and all comments received in light of ing statutes of all of the states involved and has the factors set forth in sections 3(c) and 4 of the BHC concluded that BankAmerica is authorized under Act, the Edge Act, and the Federal Reserve Act.3 these statutes to acquire the banking subsidiaries of BankAmerica, with consolidated assets of $115.5 Security Pacific located in these states.9 In light of the foregoing, the Board has determined that its approval billion, controls 10 subsidiary banks that operate in of this proposal is not prohibited by the Douglas Arizona, California, Idaho, Nevada, New Mexico, Amendment. This finding, and the Board's action in Oregon, Texas, Utah, and Washington, and hold apthis case, are conditioned upon BankAmerica receivproximately $83 billion in total domestic deposits. ing all required state regulatory approvals. Security Pacific, with consolidated assets of $76.4 billion, controls 12 subsidiary banks that operate in Alaska, Arizona, California, Idaho, Nevada, New Competitive Considerations York, Oregon, Texas, and Washington, and hold approximately $55 billion in total domestic deposits.4 As required by section 3 of the BHC Act, the Board Upon consummation of this proposal, BankAmerica has considered the effects of this proposal on compewould be the second largest commercial banking or- tition in each relevant market. The Board has analyzed ganization in the United States, with consolidated assets of $191.9 billion and total domestic deposits of $139.2 billion.5 company became a bank holding company, whichever is later. The Interstate Banking Provisions operations of a bank holding company are considered principally conducted in that state in which the total deposits of all such banking subsidiaries are largest. Section 3(d) of the BHC Act (the "Douglas Amend- 7. 12 U.S.C. § 1842(d). ment") prohibits a bank holding company from acquir- 8. See Security Pacific Corporation, 73 Federal Reserve Bulletin 746 (1987) (approving acquisition by Security Pacific of Ranier Bank ing a bank located outside of its home state6 "unless Alaska, N.A., Anchorage, Alaska); Letter to David E. Weymouth, Vice President of BankAmerica, from William W. Wiles, Secretary of the Board (May 25, 1990)(acquisition by BankAmerica of Bank of America Arizona, Phoenix, Arizona); Letter to David E. Teitelbaum, 2. Several persons have requested an additional extension of the Esq., Morrison & Foerster, from Jennifer J. Johnson, Associate public comment period in this case. Each of these commenters has Secretary of the Board (Jan. 11, 1991) (acquisition by BankAmerica of submitted written comments or oral testimony during the public Bank of America Idaho, Coeur d'Alene, Idaho); BankAmerica Corcomment period. In light of the extended period permitted for public poration, 75 Federal Reserve Bulletin 825 (1989) (acquisition by comment in this case, the opportunity provided to submit oral BankAmerica of Nevada First Bank and Silver State Thrift & Loan testimony, the fact that the requesters were able to and did provide Association, both of Reno, Nevada); Citicorp, 11 Federal Reserve comments in this case, and the other facts of record, the Board has Bulletin 325 (1991) (acquisition by Citicorp, New York, New York, of determined not to grant these requests for a further extension of the De Anza Holding Corporation, Sunnyvale, California); BankAmerica public comment period. Corporation,76 Federal Reserve Bulletin 248 (1990) (acquisition by 3. The Board also has considered additional comments filed after BankAmerica of Woodburn Bancorp and Woodburn State Bank, both the close of the public comment period. Under the Board's rules, the of Woodburn, Oregon); BankAmerica Corporation,11 Federal Re- Board may in its discretion take into consideration the substance of serve Bulletin 613 (1991) (acquisition by BankAmerica of Bank of such comments. 12 C.F.R. 262.3(e). America Texas, N.A., Houston, Texas); BankAmerica Corpora- 4. Pursuant to provisions of section 4(g) of the BHC Act, Security tion, 69 Federal Reserve Bulletin 568 (1983) (acquisition by Bank- Pacific controls an insured depository institution with limited powers America of Seafirst Corporation, Seattle, Washington). that operates in New York. BankAmerica has proposed to acquire this 9. Each of these state statutes permits a bank holding company institution pursuant to section 3 of the BHC Act and operate it as a located in California to acquire a bank in each respective state. See full-service bank. Alaska Stat. § 06.05.235(e) (1991); Ariz. Rev. Stat. Ann. § 6-322(B) 5. Asset data are as of December 31, 1991. Deposit data are as of (Cum. Supp. 1991); Idaho Code § 26-503 (1990); Nev. Rev. Stat. Ann. June 30, 1990, unless otherwise noted. § 666.315 (Cum. Supp. 1991); N.Y. Banking Law § 142-b(l) (McKin- 6. A bank holding company's home state is that state in which the ney 1990); Or. Rev. Stat. § 715.065 (1991); Tex. Rev. Civ. Stat. Ann. operations of the bank holding company's banking subsidiaries were art. 342-912(4) (Supp. 1991); Wash. Rev. Code Ann. §§ 30.04.232 and principally conducted on July 1, 1966, or the date on which the 32.32.228 (West 1986). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

340 Federal Reserve Bulletin • May 1992 information collected from a variety of sources to Security Pacific and the pro forma size of the consoldetermine the size and scope of the relevant markets in idated organization in each of these states are dethis case, the effect of competition from other banks scribed in Appendix B to this order. and from thrift institutions, and the likely effect of this Various measures of market concentration, includmerger on competition in these markets. This informa- ing the Herfindahl-Hirschman Index ("HHI"), indition included surveys of local markets, information cate that, absent divestitures of branches and offices, obtained from competitors of BankAmerica and Secu- the proposal may result in significantly adverse comrity Pacific regarding their activities in various mar- petitive effects in a number of the banking markets in kets, and information provided by BankAmerica. The Arizona, California, Nevada, Oregon, and Washing- Board has also reviewed the substantial divestitures ton.14 BankAmerica has proposed divestitures in order proposed by BankAmerica in California, Washington, to mitigate the potentially anti-competitive effects of Arizona, Nevada, and Oregon. In addition, the Board the proposal in these markets.15 In this regard, Bankhas carefully considered the comments from interested America has committed to divest 49 branches in Arimembers of the public regarding the competitive ef- zona representing deposits of approximately $2.4 bilfects of this proposal in particular banking markets, lion; 44 branches in California representing deposits of including comments alleging that the proposal would approximately $1.9 billion; 30 branches in Nevada result in substantially anti-competitive effects in vari- representing deposits of approximately $829 million; ous markets in Arizona, California, Nevada, and 87 branches in Washington representing deposits of Washington, or in other broadly defined geographic approximately $3.3 billion; and three branches in regions. Oregon representing deposits of approximately $65 A number of the commenters have argued that the million. These divestitures will include the sale of competitive effects of this merger should be analyzed deposits, branch and other office premises, certain on the basis of narrow product definitions, such as central lending offices, and other assets, including lending to small businesses, or on the basis of various small business, middle market, and consumer loans. In geographic market definitions, such as states, regions, addition, BankAmerica has committed to permit acor individual neighborhoods. The Board and the courts quirors of the branches and offices to be divested to have recognized that the cluster of products and solicit for hire employees of those branches and ofservices offered by banking institutions constitutes the fices. BankAmerica has also committed that all divesappropriate product market for evaluating bank merg- titures will be to competitively suitable acquirors ers and acquisitions.10 The Board and the courts have whose acquisition of the divested assets and liabilities also recognized consistently that the geographic mar- would not result in a substantial lessening of competiket for the cluster of products and services is local in tion in relevant markets. nature.11 On the basis of these precedents and the facts of record in this case, the Board believes that the analysis of the competitive effects of this proposal vada is analyzed on the basis of the market presence of Valley Capital. BankAmerica and Security Pacific also each have ownership interests should be based on the availability of the cluster of in Emerald City Bank, Seattle, Washington, a minority-controlled banking products and services to a range of customers bank. BankAmerica has committed that it will conform its ownership in local banking markets. interests in this bank to section 3 of the BHC Act within two years of consummation of this proposal. BankAmerica and Security Pacific both control in- 14. Deposit data are as of June 30, 1990, unless otherwise noted. sured depository institutions located in Arizona,12 15. With respect to each market in which BankAmerica has committed to divest offices to mitigate potential anti-competitive effects of California, Idaho, Nevada, Oregon, Texas, and Washthis proposal, BankAmerica has committed to execute sale agreeington, and compete directly in 116 banking markets in ments prior to consummation of the acquisition of Security Pacific these states.13 The existing sizes of BankAmerica and (except in Fresno, California, as discussed below), and to consummate these divestitures within 180 days of consummation of the acquisition of Security Pacific. BankAmerica has committed that, in the event it is unsuccessful in completing any divestiture within 180 10. See, e.g., First Hawaiian, Inc., 77 Federal Reserve Bulletin 51 days of consummation of this proposal, BankAmerica will transfer the (1991); U.S. v. Philadelphia National Bank, 374 U.S. 321 (1963). relevant office to an independent trustee that has been instructed to 11. Id. sell the office promptly. The Board has found in previous cases that 12. BankAmerica's Arizona bank subsidiary operates a branch this type of program for the divestiture of bank offices is appropriate located in Utah. to address the potential anti-competitive effects of bank acquisition 13. The Board recently approved BankAmerica's proposal to ac- proposals. See, e.g., United New Mexico Financial Corporation, 77 quire Valley Capital Corporation, Las Vegas, Nevada. BankAmerica Federal Reserve Bulletin 484, 485 (1991); First Union Corporation, 76 Corporation, 78 Federal Reserve Bulletin 299 (1992). In connection Federal Reserve Bulletin 83 (1990). In order to meet the requirements with that acquisition, BankAmerica will retain Valley Capital but will of the California Attorney General, BankAmerica recently has agreed to divest certain offices in Fresno, California. With respect to these divest all of the operations of BankAmerica Nevada, its current bank offices only, BankAmerica has committed to use its best efforts to subsidiary in Nevada. Valley Capital is the second largest insured execute a sale agreement prior to consummation of this proposal. depository institution in Nevada. In light of the proposed acquisition BankAmerica has committed to complete these divestitures within the of Valley Capital and divestiture of BankAmerica Nevada, the com- 180 day period and subject to the same procedure described above. petitive effect of the BankAmerica/Security Pacific proposal in Ne- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 341 With the exception of the Phoenix, Tucson, and proposed divestitures, the HHI in this market would Bullhead City, Arizona banking markets discussed increase by 258 points to 1973.20 below, after giving effect to the proposed divestitures At least 37 bank and thrift competitors would remain and competition offered by thrift institutions in the in the market following consummation. In addition, market,16 the competitive effect of the transaction in the Phoenix market is attractive for entry. Since 1986, each relevant market would be consistent with the eleven large bank holding companies have acquired merger guidelines established by the Department of insured depository institutions in the market. Two Justice and parameters applied by the Board in previ- banks have entered the market de novo since June ous decisions.17 Consummation of the proposal in the 1989.21 The Board also notes that BankAmerica ac- Arizona banking markets of Phoenix, Tucson and quired its offices in this market, as well as in the Bullhead City would result, after giving effect to Tucson and Bullhead City markets, through the acquiproposed divestitures, in concentration measures that sition of failed or failing thrift institutions from the exceed the Department of Justice guidelines.18 A num- Resolution Trust Corporation. The record shows that ber of commenters also have expressed concern re- BankAmerica has incurred significant run-off of deposgarding the effect of the proposal on competition in the its in these markets since these acquisitions, including Seattle, Washington, and Los Angeles, California, a continued decline in deposits since June 30, 1991, banking markets. that other competitors in these markets have not experienced. When compared to the growth experi- Phoenix Banking Market enced generally by these markets, the decline in deposits retained by BankAmerica indicates that the use of deposit figures to approximate the market share BankAmerica is the fourth largest of 38 insured depository institutions in the Phoenix banking market,19 controlled by BankAmerica in these markets may overstate to some degree the actual market presence holding $3.7 billion in deposits, representing approxiof BankAmerica in these markets. mately 17.6 percent of the total deposits in insured depository institutions in the market ("market deposits"). Security Pacific is the second largest insured Tucson Banking Market depository institution in the market, holding $3.8 billion in deposits, representing approximately 18.2 per- BankAmerica is the fourth largest of twelve insured cent of market deposits. depository institutions in the Tucson banking mar- BankAmerica has committed to divest 28 branches ket,22 holding $784.8 million in deposits, representing in this market, representing approximately $1.58 bil- approximately 15.9 percent of market deposits. Seculion in market deposits. After giving effect to the rity Pacific is the second largest insured depository institution in the market, holding $972.4 million in deposits, representing approximately 19.7 percent of market deposits. BankAmerica has committed to divest nine 16. The Board previously has indicated that thrift institutions have become, or have the potential to become, significant competitors of branches in this market, representing approximately commercial banks. See, e.g., First Union Corporation, 76 Federal $321.2 million in market deposits. After giving effect to Reserve Bulletin 83 (1990). Thus, the Board has regularly included thrift deposits in the calculation of market share on a 50 percent the proposed divestitures, the HHI in this market weighted basis. See, e.g., First Hawaiian, Inc., 11 Federal Reserve would increase by 248 points to 1845.23 Bulletin 52 (1991). In considering the competition offered by thrifts in all banking markets in this case, thrift deposits are weighted at 50 percent, unless otherwise noted. 17. Under the revised Department of Justice Merger Guidelines, 49 Federal Register 26,823 (1984), a market in which the post-merger HHI is above 1800 is considered to be highly concentrated. In such 20. Following this proposed divestiture, BankAmerica would be the markets, the Department is likely to challenge a merger that increases second largest depository institution in the Phoenix market, controlthe HHI by more than 50 points. The Department has informed the ling approximately $6.1 billion in deposits, representing approxi- Board that a bank merger or acquisition generally will not be chal- mately 29.0 percent of market deposits. lenged (in the absence of other factors indicating anti-competitive 21. In addition, between 1985 and 1990, the Phoenix population effects) unless the post-merger HHI is at least 1800 and the merger grew at annual rate of 3.2 percent, far greater than the national rate of increases the HHI by more than 200 points. The Department has 0.8 percent. Total personal income in Phoenix also grew faster than stated that the higher than normal HHI thresholds for screening bank the national rate. Between 1984 and 1989, total personal income in mergers for anti-competitive effects implicitly recognize the compet- Phoenix grew at an average annual rate of 9.4 percent, in comparison itive effect of limited-purpose lenders and other non-depository finan- to the national rate of 7.1 percent for the same period. cial entities. 22. The Tucson banking market is approximated by the Tucson 18. Deposit data for Arizona banking markets are as of June 30, RMA. 1991. 23. Following this proposed divestiture, BankAmerica would be- 19. The Phoenix banking market is approximated by the Phoenix come the largest depository institution in the Tucson banking market, Ranally Metropolitan Area ("RMA"), with the addition of the towns controlling approximately $1.4 billion in deposits, representing apof Buckeye, Carefree, and Cave Creek, Arizona. proximately 29.1 percent of market deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

342 Federal Reserve Bulletin • May 1992 At least eleven bank and thrift competitors would sidiary. After giving effect to the proposed divestiremain in the market following consummation. In tures, the Seattle banking market would remain modaddition, the Tucson market is attractive for entry.24 erately concentrated, with an HHI of 1766, representing an increase of 426 points. In addition, at Bullhead City Banking Market least 58 bank and thrift competitors would remain in the market following consummation. The Seattle BankAmerica is the second largest of nine insured banking market is also attractive for entry. Since 1988, depository institutions in the Bullhead City banking 12 banks have entered the Seattle banking market market,25 holding $73.8 million in deposits, represent- de novo. ing approximately 21.1 percent of market deposits. Security Pacific is the fourth largest insured depository Los Angeles Banking Market institution in the market, holding $38.5 million in deposits, representing approximately 11.0 percent of BankAmerica is the second largest of 267 insured market deposits. depository institutions in the Los Angeles banking BankAmerica has committed to divest one branch in market,29 holding $19.3 billion in deposits, representthis market, representing approximately $41.5 million ing approximately 12.2 percent of market deposits. in market deposits. After giving effect to the proposed Security Pacific is the largest insured depository instidivestiture, the HHI in this market would increase by tution in the market, holding $24.4 billion in deposits, 317 points to 2037.26 representing approximately 15.5 percent of market At least eight bank and thrift competitors would deposits. remain in the market following consummation. In Upon consummation of the proposal, the Los addition, the Bullhead City market is attractive for Angeles banking market would remain unconcenentry. One bank has entered the market on a de novo trated, with an HHI of 942, representing an increase of basis since 1987.27 377 points.30 In addition, at least 266 bank and thrift competitors, including the largest banks and thrifts in Seattle Banking Market the state, would remain in the market following consummation of the proposal. The Los Angeles banking BankAmerica is the largest of 59 insured depository market also is attractive for entry. institutions in the Seattle banking market,28 holding In light of the divestitures BankAmerica has prodeposits of $6.9 billion, representing 25.9 percent of posed in this case in various markets, the resulting market deposits. Security Pacific is the second largest market concentration measures, competition offered insured depository institution in the market, holding by thrifts, the numbers of competitors remaining in the deposits of $4.9 billion, representing 18.3 percent of markets, the mitigating factors in the Phoenix, Tucson market deposits. and Bullhead City banking markets discussed above, BankAmerica has committed to divest 46 branches and other facts of record, the Board has concluded in the Seattle banking market, representing approxi- that the proposal would not result in a significantly mately $1.9 billion in market deposits. BankAmerica adverse effect on competition in any of the 116 banking also has committed to divest certain corporate lending markets in which BankAmerica and Security Pacific divisions of Security Pacific's Washington bank sub- compete.31 The Department of Justice has also reviewed the competitive effects of this proposal. The Department 24. Between 1985 and 1990, the population of the Tucson area grew has indicated to the Board that, subject to completion at an annual average rate of 2.7 percent, in comparison with the of the divestitures proposed by BankAmerica, the national rate of 0.8 percent for same period. Between 1984 and 1989, total personal income in Tucson grew at an average annual rate of 7.7 proposal would not result in a significantly adverse percent, in comparison with the national rate of 7.1 percent for the effect on competition in any relevant market in which same period. BankAmerica and Security Pacific compete directly. 25. The Bullhead City banking market is approximated by the cities and towns of Bullhead City, Mohave Valley, and Riviera, Arizona; The Attorneys General of Arizona, California, and Needles, California; and Laughlin, Nevada. Washington have also reviewed the competitive ef- 26. Following this proposed divestiture, BankAmerica would become the largest depository institution in the Bullhead City banking market, controlling approximately $99.5 million in deposits, representing approximately 28.4 percent of market deposits. 29. The Los Angeles banking market is approximated by the Los 27. In addition, since 1984, the population of Laughlin, Nevada, Angeles RMA. which is in the market, has grown from 95 to 6,200. The Laughlin 30. Under the Department of Justice merger guidelines, a market in Chamber of Commerce estimates that the Laughlin population will which the post-merger HHI is less than 1,000 is considered unconcenreach 15,000 by 1995. trated. 28. The Seattle banking market is approximated by the Seattle 31. The effects of the proposal on competition in the relevant RMA. banking markets are described in Appendix C to this order. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 343 fects of the proposal in their respective states, and Guidelines.34 The Board carefully analyzes the effect have concluded that, subject to the completion of the of expansion proposals on the preservation or achieveproposed divestitures in their states, the proposal ment of strong capital levels and has adopted a policy would not result in significantly adverse effect on that there should be no significant diminution of financompetition in any banking market in their respective cial strength below these levels for the purpose of states. effecting major expansion proposals.35 The Board also has sought comments concerning BankAmerica proposes to acquire all of the outthe competitive effects of this proposal from the Office standing common and preferred shares of Security of the Comptroller of the Currency ("OCC") and the Pacific in a purchase transaction to be funded with the Federal Deposit Insurance Corporation ("FDIC"). issuance of shares of BankAmerica stock. BankAmer- Neither the OCC nor the FDIC has provided any ica will not incur debt to fund the acquisition. The objection to consummation of this proposal nor indi- proposed transaction nevertheless represents a subcated that the proposal would have any significantly stantial acquisition for BankAmerica, and will increase adverse competitive effects. the size of the organization by almost two-thirds. Based on all of the facts of record in this case, and In advance of this transaction, BankAmerica has subject to BankAmerica's compliance with all commit- accumulated significant capital. During 1991, Bankments relating to the proposed divestitures made as America increased its tier one capital by over $1.6 part of the application in this case, the Board con- billion through the retention of earnings as well as cludes that consummation of this proposal would not external capital issues, and augmented its total capital have a significantly adverse effect on competition or ratios by issuing over $600 million of subordinated the concentration of banking resources in any relevant debt. BankAmerica's capital raising efforts have conmarket. BankAmerica must provide the Reserve Bank tinued into 1992, with capital issues, to date, totalling with details regarding the proposed divestitures, in- $915 million. As a result, and notwithstanding a subcluding identifying the proposed purchaser, prior to stantial increase in intangible assets resulting from the consummating these divestitures in order that the accounting treatment of the transaction, the pro forma Reserve Bank may ensure that the divestitures comply organization's capital ratios will be above the required with this order. minimum levels, without reliance on intangible assets. Financial projections submitted by BankAmerica indicate that the capital ratios for the resulting organiza- Financial and Managerial Factors tion will remain above these levels, and that other measures to be taken by BankAmerica, including the The Board has carefully considered the financial and achievement of cost savings, will result in a further managerial resources and future prospects of the comstrengthening of the capital position of the pro forma panies and banks involved and the effect on those resources of the proposed acquisition.32 The Board organization. has stated and continues to believe that capital ade- BankAmerica believes that it can achieve significant quacy is an especially important factor in the analysis cost savings and operational efficiencies as a result of of bank holding company expansion proposals, partic- the transaction. Cost savings are expected to result ularly in transactions, such as this, where a major from a number of factors, including consolidation of acquisition is proposed.33 branches and office facilities, elimination of certain In this regard, the Board expects banking organiza- duplicative operational and administrative functions, tions contemplating expansion proposals to maintain and related staff reductions.36 The achievement of strong capital levels substantially above the minimum these savings would enable the organization to operate levels specified in the Board's Capital Adequacy more efficiently with a resulting strengthening of the organization's financial position and its ability to provide services to its communities. BankAmerica has committed to keep the Board apprised of its progress 32. The Board received a small number of comments regarding the in meeting the projections with respect to cost savings, financial aspects of this proposal. Most of these commenters believed that the proposal would result in a financially strong banking organi- asset dispositions, capital ratios, asset quality, loan zation. Several expressed concern with the size of the resulting organization. The Board has taken these comments into account in its analysis of the financial factors. 33. The Bank of New York Company, Inc., 74 Federal Reserve Bulletin 257 (1988); Chemical New York Corporation, 73 Federal 34. Capital Adequacy Guidelines, 12 C.F.R. Part 225, Appendices Reserve Bulletin 378 (1987); Citicorp, 72 Federal Reserve Bulletin 497 A, B, and D (1991). (1986); National City Corporation, 70 Federal Reserve Bulletin 743 35. The Bank of New York Company, Inc., Chemical New York (1984); Banks of Mid-America, Inc., 70 Federal Reserve Bulletin 460 Corporation, Citicorp, and National City Corporation, all supra. (1984); Manufacturers Hanover Corporation (CIT), 70 Federal Re- 36. Several commenters maintained that no cost savings or efficienserve Bulletin 452 (1984). cies would be realized by this merger. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

344 Federal Reserve Bulletin • May 1992 loss reserves, and the integration of management and (12 U.S.C. § 2901 et seq.) ("CRA") of the banks operations. involved in the transaction. The CRA requires the The facts of record also demonstrate that Bank- federal financial supervisory agencies to encourage America has competent and experienced manage- financial institutions to help meet the credit needs of ment.37 BankAmerica has gained familiarity with the the local communities in which they operate consistent Security Pacific organization through extensive due with the safe and sound operation of such institutions. diligence. The knowledge gained in the due diligence To accomplish this end, the CRA requires the approprocess in combination with BankAmerica's own priate federal supervisory authority to "assess the experience in recovering from economic difficulties institution's record of meeting the credit needs of its should facilitate the integration of the two organiza- entire community, including low- and moderate-intions and strengthen its ability promptly and effec- come neighborhoods, consistent with the safe and tively to manage problem assets at the combined sound operation of such institution," and to take that organization. Although BankAmerica will add fifteen record into account in its evaluation of bank expansion of Security Pacific's directors to its existing board, proposals.38 current BankAmerica managers will fill a preponder- In this case, the Board has carefully reviewed the ance of the senior management positions in the merged CRA performance record of BankAmerica and Secuorganization. This should ensure that the credit poli- rity Pacific, and their subsidiary banks, the comments cies and standards, and risk-identification systems of and testimony presented at the public meetings and in BankAmerica will remain in effect at the combined written submissions, and BankAmerica's responses to organization. those comments, in light of the CRA, the Board's Based on these considerations, including the com- regulations, and the Statement of the Federal Finanmitments made by BankAmerica and all the facts of cial Supervisory Agencies Regarding the Community record in this case, the Board concludes that the Reinvestment Act ("Agency CRA Statement").39 financial and managerial factors and future prospects of BankAmerica and its subsidiaries are consistent Public Comments on Convenience and Needs with approval of these applications. The Board conditions its action regarding this transaction on compli- As noted above, the Board invited public comment ance by BankAmerica with its capital proposals and over an extended period of time in this case and held with the other representations affecting financial re- four public meetings at which interested persons could sources made in connection with this application. present testimony. The Board has received approximately 343 comments on this proposal. These com- Convenience and Needs Considerations menters included individuals, representatives of community groups, churches, city and state government Section 3 of the BHC Act requires the Board, in every officials, small businesses, and several members of case involving the acquisition by a bank holding com- Congress. Of these commenters, approximately 176 pany of a bank or bank holding company, to consider provided testimony at the four public meetings in the effects of the proposal on the convenience and California, Washington, and Arizona sponsored by the needs of the community to be served. The Board has Board in order to collect information concerning the long held that this analysis of community convenience convenience and needs factors and the CRA perforand needs considerations includes a review of the mance records of the institutions in this case. Written performance under the Community Reinvestment Act comments were received from 166 commenters who did not appear at the public meetings, and from 24 commenters who testified at these meetings. 37. Several commenters have alleged improper actions by Bank- Approximately 152 of the comments supported the America or Security Pacific employees regarding individual loan or proposal or spoke favorably about the CRA perforaccounts transactions affecting these commenters, disclosure of finanmance records of BankAmerica or Security Pacific. cial information, and improper influence on lending decisions. In some cases, commenters offered no documentation to substantiate their The remaining 191 commenters either opposed the allegations, and in other cases commenters indicated that they had merger, requested the Board to approve the merger referred their complaints to the primary banking supervisor and law subject to conditions proposed by the commenter, or enforcement agencies. Some commenters alleged that management will improperly benefit from the proposal. The Board has reviewed raised concerns about the CRA performance of Bankthese comments in light of all of the facts of record in this case, including information responding to these comments provided by BankAmerica and information contained in examination reports provided by other federal bank supervisory agencies. Based on this review and all of the facts of record in this case, the Board concludes that these comments do not provide a basis for disapproval of this 38. 12 U.S.C. § 2903. transaction. 39. 54 Federal Register 13,742 (1989). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 345 America or Security Pacific ("Protestants").40 Com- tions, economic development corporations, small busmenters presented information regarding a number of inesses and agricultural interests. These commenters aspects of the CRA performance record of the banks related specific instances in which BankAmerica supinvolved, including the following: ported their activities through loans, flexible or cre- Ascertainment and marketing efforts. A number of ative financing packages, technical assistance, or charcommenters believe that BankAmerica has effective itable donations. Commenters who indicated that ascertainment and marketing programs. These com- BankAmerica had a strong record of helping to meet menters noted numerous examples of BankAmerica local credit needs included individual and small busiemployees and officers who served as members of ness customers of BankAmerica, local housing and community and nonprofit organizations and who pro- community development departments, representatives vided leadership on the boards of directors of these of the Small Business Administration, large nonprofit organizations. Commenters also praised special edu- affordable housing organizations, community reinvestcational initiatives by BankAmerica including its con- ment corporations, housing finance commissions, sumer education projects and programs for housing groups representing ethnic minority interests, educadevelopment. Several commenters noted the efforts tional and religious organizations, and charitable founmade by BankAmerica to reach non-English speaking dations. BankAmerica also entered into agreements customers through foreign language ATMs, foreign with several community groups and community devellanguage videos describing various products, and pubopment agencies to improve certain types of lending in lished promotional materials. various communities and BankAmerica's efforts in Protestants maintained that BankAmerica has not addressing other CRA-related concerns of these taken sufficient steps to understand the credit needs of groups. communities it serves, particularly outside of its home Other commenters alleged that BankAmerica did state of California. These commenters alleged that not make sufficient funding available for affordable outreach efforts to low- and moderate-income and housing, including single-family and multi-family minority neighborhoods are inadequate and suggested dwellings, for low- and moderate-income and minority that BankAmerica improve its efforts by a variety of residents in California, Washington, Nevada, and Armeans, including using churches and special consult- izona, and that BankAmerica's special mortgage proants. BankAmerica's outreach efforts to rural areas grams did not serve the housing credit needs of these were also criticized. A few Protestants suggested that borrowers.42 Protestants also maintained that Bank- BankAmerica should improve its consumer education America's consumer loan programs for low- and modand counseling services and target these efforts at erate-income individuals were inadequate to meet the various minority groups. credit needs of these consumers. Some Protestants in Several Protestants, citing housing-related loan orig- Washington and Arizona contended that BankAmerica ination data, maintained that BankAmerica's market- will reinvest local deposits in out-of-state service areas ing programs were ineffective in penetrating low- and to the detriment of the credit needs of their states. Of moderate-income and minority neighborhoods. Other special concern were the basic banking services ofcommenters alleged that BankAmerica did not adver- fered by BankAmerica, which a number of Protestants tise in media targeted to minority customers.41 alleged were too expensive or had burdensome re- Lending and other activities. A number of com- quirements that effectively limited their availability to menters applauded BankAmerica's lending programs low-income customers. Commenters also recomand its support for community and nonprofit organiza- mended changes to BankAmerica's government check cashing policies such as reducing fees and eliminating a requirement for multiple personal identifications.43 40. Several Protestants alleged that their individual loan denials by BankAmerica's small business lending efforts in BankAmerica evidence a failure to comply with the CRA. Bank- low- and moderate-income areas and to small busi- America has provided financial information regarding some of these nesses owned by minorities and women were also transactions. The Board believes that the decision whether to grant credit in an individual case rests with the lending institution. In making considered inadequate by some Protestants. Several of this decision, the Board expects the institution to abide by safe and these commenters believed that BankAmerica also sound banking practices and to provide equal opportunity for credit to all applicants. After careful consideration of the comments and all the evidence in the record, including relevant examination reports, the Board concludes that the comments regarding individual loan denials 42. Some Protestants maintained that BankAmerica's housingdo not indicate that BankAmerica has engaged in any unsafe or related lending statistics were inflated by including loans made to unsound lending practice or refused to extend credit in violation of the high-income borrowers who are acquiring housing in certain low- and Equal Credit Opportunity Act or other relevant statutes. moderate-income neighborhoods. 41. Protestants in Washington and California also believed that 43. These commenters maintained low-income individuals are BankAmerica had inadequate bilingual facilities to accommodate forced to pay higher fees to check cashing centers and retail stores in Hispanic and Asian consumers. order to obtain check cashing services. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

346 Federal Reserve Bulletin • May 1992 lacked an appreciation for the special financing needs borhoods would not be honored by BankAmerica.44 of non-profit organizations and churches. Other Prot- Several Protestants suggested that BankAmerica estants, especially in Washington and California, crit- should not terminate the beneficial CRA programs of icized the community development activities by Bank- Security Pacific, and in particular, Security Pacific's America. tax-exempt bond financing and underwriting activities, Branch locations and closings. Comments support- which support affordable housing initiatives in Washing the proposal noted that BankAmerica has and ington. Protestants also requested assurances that the continues to discuss branch closings with community commitments made by BankAmerica to improve its groups in order to minimize the impact of the proposal CRA performance, including its 10-year CRA lending on low- and moderate-income neighborhoods. How- goals, would be closely monitored and receive input ever, many Protestants were concerned about the from community groups. number of BankAmerica branches available to serve Protestants also raised issues that are not related to these areas now and in the future. These commenters BankAmerica's record of performance under the alleged that BankAmerica does not currently have CRA. For example, some Protestants asserted that sufficient branch offices in low- and moderate-income minorities and women were under-represented in senareas in California (especially in South Central Los ior management and on boards of directors of both Angeles), Washington (especially in rural areas), Ari- institutions and alleged that certain employment praczona or Nevada. Protestants also believed that Bank- tices involving BankAmerica staff and services from America should not be permitted to close branches in third-party contractors were improper.45 In addition, a already underserved low- and moderate-income areas number of Protestants expressed concern that the and minority communities as part of its planned dives- proposal would cause significant loss of employment titures or cost reductions. opportunities both at the combined organization and HMD A data and lending practices. Several Prot- more generally in the communities the organization estants analyzed the data collected under the Home would serve. Other commenters in favor of the pro- Mortgage Disclosure Act ("HMDA") for Bank- posal believed that the steps initiated by BankAmerica America and Security Pacific. Others sponsored for- would minimize any disruption resulting from any mal and informal surveys of mortgage lending prac- reductions in its employment force.46 tices. A number of these commenters alleged that these analyses and surveys showed patterns of inadequate lending in low- and moderate-income areas. Several Protestants contended that these surveys suggested illegal discriminatory lending practices in 44. Since the time these comments were filed, BankAmerica has committed to honor all existing CRA programs and agreements California, Washington, Nevada, and Arizona. Of negotiated between community groups and Security Pacific. particular concern to these commenters were dispar- 45. BankAmerica disputes these allegations, and notes that each ities between the rejection rates for minorities and organization follows a policy of equal employment opportunity throughout the respective organization. While the Board fully supnon-minorities and the level of withdrawals of appli- ports affirmative programs designed to promote equal opportunity in cations by minorities in certain communities. These every aspect of a bank's personnel policies and practices in the employment, development, advancement, and treatment of employcommenters believed that BankAmerica's actual ees and applicants for employment, the Board believes that the alleged record of lending undermined its CRA performance deficiencies in the banks' general personnel and employment pracratings by banking supervisory agencies. tices, including third-party contractors, are beyond the scope of factors that may be assessed under the CRA or the convenience and Other comments. Some commenters maintained needs factor. that the merger would result in a large, financially 46. As a general matter, BankAmerica expects that a substantial strong institution that would have the resources to number of jobs will be eliminated through attrition and through the sale of branch offices to acquirors that may continue to employ most provide enhanced services to individual and small branch personnel. In addition, BankAmerica and Security Pacific business customers. Other commenters believed that have adopted a merger transition program to assist employees who are displaced as a result of the proposal. Under this program, BankAmera large out-of-state bank would eliminate local ica will generally provide employees with two months notice prior to lending decisions by loan officers who understood separation. Employees who are separated will be entitled to salary the special circumstances and credit needs of low- benefits based on number of years of service; continued health benefits; immediate vesting for retirement plans; outplacement and and moderate-income areas, and that the merger career transition assistance through resource centers in several metwould result in inflexible underwriting criteria for ropolitan areas, including tuition assistance for retraining employees with at least one year of service; small business loans for employees local loans and delays in decisions on loan appliestablishing their own businesses; and retention of advantageous cations. employee rates for loans and banking services. BankAmerica has also Protestants also were concerned that agreements committed to continue established employment goals for women and minorities at all levels within the consolidated organization in order to negotiated between Security Pacific and community minimize the potential that job reductions would have a disproporgroups to improve CRA performance in their neigh- tionate impact on women and minority employees. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 347 Records of Performance Under the CRA has established as an internal policy the goal that all of its domestic banking subsidiaries achieve and maintain A. CRA Performance Examinations an "outstanding" performance rating under the CRA from their primary regulators. The Board has reviewed the actual overall records of performance under the CRA of these institutions, as B. Corporate Policies well as the programs and policies that BankAmerica and Security Pacific have in place to fulfill their CRA BankAmerica, Security Pacific and their subsidiary responsibilities on an ongoing basis, in light of the banks have in place the types of policies and proceinformation provided and views expressed by the dures that the Board and other federal bank supervicommenters in this case. The Board has also reviewed sory agencies have indicated contribute to an effective the CRA examination records of these institutions.47 CRA program. Bank of America's Corporate Commu- Initially, the Board notes that all of BankAmerica's nity Development Department ("Community Develsubsidiary banks have received at least a "satisfacto- opment Department"), managed by a BankAmerica ry" rating from their primary regulator in their most Executive Vice President, is responsible for overall recent examination for CRA performance. Bank of CRA compliance within the organization and for as- America, which is BankAmerica's lead bank and ac- sisting BankAmerica bank subsidiaries in achieving counts for approximately 86 percent of the assets of their CRA goals and implementing their CRA pro- BankAmerica, received an "outstanding" perfor- gram. For example, the Community Development mance rating from the OCC as of October 1990. Bank Department performs an initial evaluation of CRA of America State Bank, Concord, California ("State programs and resources for each subsidiary bank and Bank"), also received an "outstanding" CRA perfor- recommends to the subsidiary's management and mance rating from the FDIC as of June 1991.48 board of directors an action plan designed to improve CRA performance for its subsidiary banks. The Com- Security Pacific National Bank, Los Angeles, Calimunity Development Department also provides onfornia, Security Pacific's lead bank, has received a going consulting and technical assistance, monitors "satisfactory" performance rating from the OCC as of and reports progress of each subsidiary's program to April 1991. Security Pacific's remaining banking sub- BankAmerica management on a quarterly basis, and sidiaries, or their predecessors, also have satisfactory makes annual on-site evaluations of each subsidiary CRA performance ratings in their most recent examinations by their primary regulators.49 BankAmerica bank's CRA program. Special programs developed by Bank of America are made available to each subsidiary bank for purposes of adapting these programs to local credit needs. In addition, the specialized community 47. The Agency CRA Statement explains that decisions by agencies development services of State Bank will be available to allow financial institutions to expand will be made pursuant to an analysis of the institution's overall CRA performance and will be to all bank subsidiaries.50 based on the actual record of performance of the institution. The Security Pacific has a Public Policy Committee for Agency CRA Statement provides that a CRA examination is an important and often controlling factor in the consideration of an the boards of directors of Security Pacific and Security institution's CRA record and that these reports will be given great Pacific National Bank that provides direct board of weight in the applications process. 54 Federal Register 13,742, 13,745 (1989). director oversight of CRA performance. The CRA 48. BankAmerica's Washington subsidiary, SeaFirst, received a Administrator for Security Pacific is an Executive "satisfactory" performance rating from the OCC as of April 1991, and Bank of America Arizona, Phoenix, Arizona, received a "satisfactory" performance rating from the FDIC as of November 1991. Bank- America's subsidiary banks and thrifts in Oregon and Nevada each received a satisfactory CRA performance rating from the FDIC in the received satisfactory ratings from the FDIC, although Bank of Amer- following examinations: Security Pacific State Bank, Costa Mesa, ica Nevada (formerly Nevada First Bank) and Silver State Thrift and California (February 1989); Security Pacific Savings Bank, Tacoma, Loan Association, both of Reno, Nevada, were not BankAmerica Washington (April 1990); Security Pacific Bank Oregon, Portland, subsidiaries at the time of the examinations in 1988. The BankAmerica Oregon (June 1988); and Security Pacific Bank Arizona (formerly The subsidiaries in New Mexico, Idaho and Texas were formed recently to Arizona Bank), Phoenix, Arizona (October 1988). Security Pacific acquire several failed institutions from the Resolution Trust Corpora- Bank Idaho, Coeur d'Alene, Idaho, received a satisfactory CRA tion and the FDIC. As new institutions, these BankAmerica subsid- performance rating from the Office of Thrift Supervision (March iaries have not been examined for CRA compliance by their primary 1990). regulators. 50. State Bank was created in 1990 for the primary purpose of 49. Security Pacific's subsidiary national banks each received a coordinating BankAmerica's community development activities in satisfactory CRA performance rating from the OCC in the following both rural and urban areas through programs for affordable lowexaminations: Security Pacific Bank, N.A., Tempe, Arizona (July income housing, government-guaranteed small business lending, and 1990); Security Pacific State Bank, Irvine, California (February 1989); economic development. State Bank provides these services in delin- Security Pacific Bank Alaska, N.A., Anchorage, Alaska (March eated communities where a BankAmerica subsidiary bank does not 1989); Security Pacific Bank Washington, N.A., Seattle, Washington engage in community development activities. State Bank also pro- (December 1989); Security Pacific Bank Nevada, N.A., Las Vegas, vides technical assistance to affiliates regarding community develop- Nevada (May 1989). Security Pacific's subsidiary state banks each ment activities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

348 Federal Reserve Bulletin • May 1992 Vice President responsible for CRA activities through- After discussions with community groups and civic out the organization and reports to the Security Pacific officials, the Community Development Department Public Policy Committee. CRA officers at Security performed detailed studies of targeted low-income Pacific and the individual subsidiary banks report areas, such as South Central Los Angeles, to identify directly to the Executive Vice President. Each Secu- and assist in meeting credit needs. These ascertainrity Pacific subsidiary has established Community ment efforts resulted in the development of two credit Involvement Program goals in the areas of affordable programs, the B*A*S*I*C consumer lending program housing, small business lending and community devel- and the Neighborhood Advantage home loan program, opment activities. both of which offer more flexible underwriting stan- Under the proposal, CRA activities at all of the dards to make loans more widely available in lowmerged banks will be coordinated by the Executive income neighborhoods or to low-income customers. Vice President in charge of CRA performance at Bank BankAmerica also ascertains the credit needs of of America who will report directly to BankAmerica's communities through direct contacts by employees of Chairman and Chief Executive Officer. This officer its subsidiary banks. Branch managers have estabwill also serve as Chairman of the Board of State lished goals for calls to be made on public officials, Bank, Chairman of Bank of America's Social Policy business associations, and community organizations Committee,51 and secretary of the BankAmerica's knowledgeable about local credit needs.53 Information Public Policy Committee. gathered through these contacts is summarized in CRA compliance will also be coordinated by the questionnaires completed periodically for each branch Executive Vice President as manager of the Commu- service area, and is used by the Community Developnity Development Department that will oversee the ment Department and other departments in devising CRA Compliance units at each subsidiary bank. In this techniques to target outreach efforts. As part of this regard, the Community Development Department will application, Bank of America will establish an advisassist each bank in the BankAmerica organization in ory board of community representatives that will meet adopting a CRA action plan approved by the Social regularly with the Social Policy Committee.54 Policy Committee and the Public Policy Committee. As a result of this needs assessment process, Bank- The Community Development Department will also America created State Bank with its focus on commumonitor compliance with the CRA programs of all nity development activities. State Bank supplements BankAmerica banks and report periodically to Bank- the ascertainment efforts of the BankAmerica subsid- America's management and board of directors. iary banks. For example, State Bank employees' calls target lending opportunities in low-income housing, C. Ascertainment and Marketing Efforts economic development, and small business. State Bank also maintains ongoing contact with the commu- In addition to these functions, the Community Devel- nity on ways to assist in meeting the credit needs for opment Department has implemented techniques for California's low-income housing construction and gathering information to identify the credit needs of small business lending through its advisory committee BankAmerica's communities. For example, this de- of community representatives. partment conducts demographic analyses of lending SeaFirst branch managers also complete an annual patterns, tracks the volume of lending through special needs assessment survey and bank staff reports quarprograms, and maintains a dialogue with community terly on its CRA outreach activities. In addition to call organizations in part through its membership in a programs and membership in community organizanumber of community development organizations.52 tions, SeaFirst's ascertainment efforts have included 51. The Social Policy Committee is a subcommittee of Bank of America's Managing Committee which has oversight of CRA activities. The Social Policy Committee and Managing Committee also have Based Development, Northern California Association for Non-Profit responsibility for administering BankAmerica's Minority Purchasing Housing, Southern California Association for Non-Profit Housing, Program. Some Protestants allege that purchases by Bank of America and the Community Reinvestment Institute. from minority and women-owned businesses are insufficient. Accord- 53. Branch staff receive required training before the calls are made. ing to Bank of America, 10 percent of all purchases from vendors in In addition, Bank of America encourages community contacts by its 1991, totalling $60.6 million, were from minority and women-owned branch officers through membership on boards and committees of businesses. Bank of America also maintains that it supports local and nonprofit organizations. Bank of America's officers reported 907 regional minority purchasing councils and that it is committed to memberships in such organizations in the bank's last formal survey in increasing its purchases under this program. November 1989. 52. The Community Development Department's memberships in- 54. This advisory committee is in response to several suggestions by clude the California Community Economic Development Association, Protestants for improving the new organization's community outreach National Congress of Community Economic Development, National efforts and ensuring that the views of the community are taken into Association of Affordable Housing Lenders, Council for Community- account in formulating community development activities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 349 several third-party needs assessments of community agencies involved in the low-income housing and credit needs and a demographic assessment of ethnic government-guaranteed small business/economic depopulations in Washington's two most populated velopment loans. In addition, prospective developers counties.55 SeaFirst's marketing division also regu- of low-income housing and community development larly analyzes state and local demographic and census projects identified through Bank of America's branch information through surveys, focus groups, and test systems are referred to State Bank as part of its call markets. program. The BankAmerica subsidiary banks use a variety of Bank of America has also instituted a number of marketing strategies to reach low-income and minority programs to market products and services for small consumers. These efforts include multimedia advertis- businesses. The bank's "Small Business Alliance" ing for special credit products that target Hispanic, campaign which began in mid-1989 offers a panel of black and Asian communities. For example, Bank of advisors to help small-business owners and publishes a America conducted a major Spanish-language market- quarterly newsletter exploring trends in small business ing campaign in consultation with an Hispanic adver- markets. Bank of America's Government Guaranteed tising agency using Spanish-language television, radio Loan Specialists make presentations at trade shows and outdoor advertising in 1989.56 In the fourth quarter and small business conferences and to merchant and of 1991, Bank of America initiated an advertising trade groups, local economic development agencies, campaign using brochures, posters, print, outdoor, and loan packagers. Bank of America placed small and radio media targeted to black customers devel- business specialists in the field to assist branch officers oped by a black advertising agency.57 In addition, with loan applications and to develop needs assess- Bank of America has prepared marketing materials for ments for small and minority businesses in late 1990. one of its special mortgage loan products, the Neighborhood Advantage program, in Spanish, Vietnamese, D. Lending and Other Activities and Chinese, and has produced a video in Spanish on how to buy an affordable home. Community and The Board has reviewed BankAmerica's loan products ethnic newspapers are also used by Bank of America and community development activities in light of the to advertise its special loan products. SeaFirst also Protestants' comments on a state-by-state basis. In advertises in media targeted to ethnic communities each of these states, BankAmerica has put in place a and, in 1990, established a language bank of employees number of programs designed to help meet the credit who are conversant in 30 different languages and needs of the communities in which BankAmerica is dialects to serve non-English-speaking customers. located, including the following. To supplement its media advertising, staff at Bank of California. Total lending for home mortgage loans America's subsidiary branches are assigned goals for by Bank of America in low- and moderate-income special CRA-related marketing and outreach calls de- areas in California exceeded $482 million in 1990 and signed to increase loan originations in low- and mod- $329 million in the first three quarters of 1991. Bank of erate-income neighborhoods.58 SeaFirst and a number America also finances the development of housing for of BankAmerica's other subsidiary banks, including low- and moderate-income individuals. In 1991, it those in Nevada and Arizona, have adopted Bank of loaned $21 million for the development of single family America's marketing call program. Marketing activi- housing units for low- and very low-income houseties for State Bank are conducted directly through holds and $86.3 million for affordable multifamily calls on non-profit and local and state government rental housing primarily through State Bank. Bank of America offers several mortgage loan programs specifically designed to address the credit needs of low- and moderate-income borrowers. For exam- 55. SeaFirst has developed a CRA action plan for Bank of America Idaho, which has already made initial calls on targeted community ple, Neighborhood Advantage59 is a home loan prodgroups. BankAmerica's other subsidiary banks in Arizona, Oregon, uct requiring approximately 30 percent less qualifying New Mexico and Nevada have also adopted similar call programs. 56. Staff at Bank of America branches, especially in urban areas like Los Angeles, are ethnically diverse and many staffers are bilingual. Bank of America also introduced a Spanish-language option at all ATMs throughout California in April 1991. 57. Bank of America also provided support to an association of black real estate brokers for the computerization of its membership 59. Neighborhood Advantage is a BankAmerica program available directory and through this support has developed access to direct in all metropolitan statistical areas in California, Arizona, New mailings of marketing materials to the membership. In addition, Bank Mexico, Nevada, Oregon, and Washington. In California, Neighborof America participates in various job fairs attended by minority real hood Advantage loans are offered at more than 800 branches of Bank estate brokers. of America, through more than 200 mortgage brokers certified to sell 58. Bank of America reports over 8,000 marketing and outreach home loans to Bank of America, and through a separate network of calls were made in the first three quarters of 1991. realty/sales officers serving the real estate and builder community. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

350 Federal Reserve Bulletin • May 1992 income than standard home mortgage loans.60 In ad- federal low-income housing tax credits. For example, dition, borrowers may qualify under this program with Bank of America invested $750,000 in the California credit histories based on rents, utility payments or Equity Fund Limited Partnership in 1989 and an other sources. Bank of America has also allocated $30 additional $1 million in 1991. The Oakland Housing million for loans that do not meet the flexible under- Partnership Associates Limited Partnership received writing criteria for the Neighborhood Advantage pro- $600,000 in 1989 from Bank of America and an addigram, with $20 million of this amount allocated for the tional $500,000 in 1991. BankAmerica has authorized Los Angeles/Long Beach and Oakland metropolitan additional investments of up to approximately $10 statistical areas.61 Bank of America offers both FHA million per year for five years for the acquisition of and VA mortgage loans.62 interests in other limited partnerships that utilize low- Bank of America also assists in meeting the housing income housing tax credits. credit needs of low- and moderate-income borrowers BankAmerica has committed to establish a series of through a variety of community lending programs. revolving loan funds totaling $3 million for "predevel- Bank of America is a founding member of the Califor- opment" expenses incurred by nonprofit developers, nia Community Reinvestment Corporation, a non- public corporations and public housing authorities in profit mortgage banking consortium that makes avail- providing technical assistance and training. For examable $100 million for long-term financing for new or ple, one fund will assist tenants to purchase projects in rehabilitated multi-unit rental properties throughout which they live under various HUD program guide- California designed to be affordable for very low- to lines.66 Bank of America or the BankAmerica Founmoderate-income households. It is the largest partici- dation made 28 grants and contributions totaling pant in this program and has committed to fund 17 $266,500 to 25 organizations supporting affordable percent of each loan made by the Corporation.63 housing in 1990.67 Administrative leadership for this program is provided Bank of America also assists in meeting the need of through an executive vice president of Bank of Amer- low- and moderate-income borrowers for consumer ica who serves as chairman of the organization. Bank credit through a loan program called B*A*S*I*C. of America also supports the rehabilitation of multi- B*A*S*I*C offers the following types of consumer unit residential properties through the publicly-funded loans: automobile, home equity, personal and manu- City Improvement and Restoration Program.64 factured homes.68 Loans made under this program Bank of America expects to complete a $70 million typically have smaller loan amounts and longer matuinvestment in low-income housing tax credits through rities than conventional loans, and can be made on the the Local Initiatives Support Corporation ("LISC").65 basis of alternative sources of credit histories such as In addition, Bank of America has made equity invest- rent receipts and utility bills. Since the beginning of ments in a variety of limited partnerships created to this program in 1989, Bank of America has made invest in local projects that meet federal guidelines for approximately $31.1 million in loans, with approximately $9.7 million in home improvement and manufactured home loans.69 Bank of America also provides 60. The Neighborhood Advantage program offers loans with loanto-value ratios higher than conventional financing thereby permitting low- and moderate-income residents to borrow more funds based on the value of the property. In addition, cash reserves required under 66. Grants from these predevelopment funds are recoverable from conventional financing at closing are waived. the developer as the project proceeds. The BankAmerica Foundation 61. By the end of 1991 Bank of America exceeded its allocation by also provides predevelopment funds through grants to intermediaries $4.3 million and allocated an additional $30 million for loans that do involved in similar recoverable grants. not meet the criteria for the Neighborhood Advantage program. 67. Nonprofit housing organizations supported by loans or grants 62. Bank of America lent $38.4 million under these programs in 1990 from BankAmerica include the Northern California Community Loan and $21.1 million in the first three quarters of 1991. Protestants Fund and the Low Income Housing Fund. maintain that Bank of America's participation in these programs is 68. Bank of America also has a program for commercial loans to inadequate. According to Bank of America, FHA and VA lending in finance the conversion of manufactured home parks from investorurban areas in California is limited because the prices of homes in owned to resident-owned. those areas are generally higher than the maximum loan amount for 69. As of year-end 1991, Bank of America had approximately $18 FHA- and VA-insured loans. To help meet the credit needs for million in B*A*S*I*C loans outstanding. According to BankAmerica, mortgage financing in these areas, Bank of America introduced the lending under this program has decreased somewhat in 1990 and 1991 Neighborhood Advantage program. because of poor economic conditions and a high rate of delinquency in 63. As a participant in this program, Bank of America lent $1.6 these loans, leading Bank of America to decrease its lending. Bankmillion in 1990 and $2.5 million in the first three quarters of 1991. It is America has made several commitments to improve Bank of Ameripromoting similar programs in other states with BankAmerica subsid- ca's consumer lending to low- and moderate-income customers. For iary banks, including Washington, Oregon, Nevada, and Arizona. example, Bank of America has committed to expand its lending on 64. Bank of America loaned $1.1 million through this program in manufactured homes located in designated low-income areas through 1990 and $400,000 in the first three quarters of 1991. a $10 million, three-year pilot program offering the B*A*S*I*C 65. Bank of America invested $50 million in 1991 and has committed product. BankAmerica has also committed to allocate additional funds to purchase at least $5 million annually in low-income housing tax annually over a 10-year period to target consumer credit for lowercredits from LISC over the next four years. income customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 351 government-guaranteed student loans, and made stu- including adopting some of Security Pacific's more dent loans totaling $303 million in 1990 and $228.8 efficient application and processing systems. In addimillion during the first three quarters of 1991.70 tion to providing loans, Bank of America assists mi- Bank of America's small business lending is coordi- nority-owned small businesses by participating in pronated through special loan centers that support its grams designed to meet the special credit needs of entire branch network.71 Bank of America originated these entities.74 small business loans in California totalling over $350 Bank of America engages in a variety of community million in 1990 and $404 million in 1991. Over 50 development activities targeted to provide support for percent of small business (a business with annual sales small businesses. For example, in 1989 Bank of Amerof $5 million or less) conventional loans made by Bank ica joined the Business Consortium Fund, a program of America in 1990 and 1991 were for amounts of established by a national nonprofit minority business $50,000 or less.72 State Bank estimates that in 1991, development organization to assist minority busi- 43 percent of its total small business loans in California nesses to obtain working capital loans.75 Bank of were in amounts of $100,000 or less and that approx- America also makes commercial rehabilitation loans imately 33 percent of its small business loans were to through the City Improvement and Restoration Prominority- or women-owned businesses. Bank of Amer- gram and participates in various public/private partica also makes loans guaranteed by the Small Business nership programs that are developed to meet locally Administration ("SBA") to small business applicants defined credit needs.76 Bank of America participates in that do not meet its conventional credit criteria. In the California Export Finance Program which is ad- 1990, Bank of America made $14.4 million in SB A ministered by the California State World Trade Comloans and $16.1 million in 1991. Bank of America has mission for the purpose of providing exporting comalso invested in SBA-guaranteed loans originated by panies in California with working capital loan third parties for a total of $7.2 million in 1990, and an guarantees or an accounts receivable facility for a additional $29.7 million at the beginning of 1991. specific export order or series of orders.77 In addition, Bank of America contributes to revolving loan funds Bank of America recently began participating in the making short-term loans to assist nonprofit agencies California Capital Small Business Development Corproviding social services under contract with local and poration in Sacramento, a small business lending prostate governments with cash-flow shortages. gram guaranteed by the State of California which focusses on micro-loans and lines of credit as small as Bank of America and BankAmerica Foundation also $5,000 for women- and minority-owned businesses.73 provide assistance to support community development Through State Bank, Bank of America has also activities through a number of grants, contributions, worked with the City of West Hollywood to develop and training programs.78 BankAmerica has committed additional micro-loan programs for small businesses. to allocate $1.4 million thereby doubling the funding Bank of America has committed to improve its proce- from the BankAmerica Foundation for economic dedures for processing business loans in California, 74. These programs include the Northern California Community Loan Fund, Coalition for Women's Economic Development and 70. Bank of America also supports educational initiatives for Opportunity Capital Corporation. Several Protestants allege that the minority students through charitable contributions to minority recruit- credit needs of churches are not being adequately served by California ment programs at a number of California colleges. lending institutions. Bank of America has committed to work with 71. BankAmerica has taken a number of steps to enhance its small churches in meeting their financing requirements and to discuss such business lending in urban communities such as San Francisco. For loans with community groups in San Diego and Los Angeles. example, State Bank will initiate a small business earthquake recovery 75. Bank of America made $6.2 million in loans to this fund in 1991. lending program with the San Francisco Redevelopment Agency. In In addition, Bank of America participates in loan programs sponsored response to comments from San Francisco community groups, Bank by the Center for Southeast Asian Refugee Resettlement which of America has also initiated a program with Catholic Healthcare West administers a revolving loan fund for refugee small business owners to accept deposits at below-market rates for the express purpose of who cannot otherwise qualify for credit. making housing and small business loans at below market rates in 76. Several Protestants have expressed concern over the level of designated areas. In addition, Bank of America provides grants and small business lending in rural California areas. Bank of America technical assistance to small business support groups such as the provides credit to small businesses and community groups in rural Women's Initiative for Self-Employment, which offers training and areas through two FHA loan programs, the Business and Industrial loans to lower-income women business owners in the San Francisco Loan Program and the Community Facilities Loan Program. Bank of Bay area, and has extended a $10 million line of credit to the Delancey America transferred its SBA lending program to State Bank in 1991 Street Foundation, an organization providing training and housing to and State Bank's SBA marketing specialists will serve rural areas. ex-felons. 77. Bank of America lent $4.1 million through this program in 1991. 72. Bank of America had outstanding $27 million in commercial 78. Fifteen grants and contributions, totaling $257,400, were made property loans and $59.2 million in agricultural loans at the end of the to 13 organizations in 1990. Bank of America has also sponsored third quarter of 1991 where credit relationships equaled $500,000 or community development professionals in programs offered by the less. Development Training Institute in Baltimore. Another institute has 73. In 1991 Bank of America originated loans totalling $700,000 received a $10,000 grant for training and technical support of Hispanic under this program. chambers of commerce throughout the West. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

352 Federal Reserve Bulletin • May 1992 velopment activities in 1992.79 Bank of America has has committed to fund approximately 40 percent of a also been a significant participant in California public $75 million loan pool for multi-family housing through debt financing transactions.80 the Washington Community Reinvestment Associa- Credit products for agricultural borrowers are of- tion. fered by Bank of America through farm operating SeaFirst has also committed to adopt many of loans under the Farmers Home Administration Security Pacific's goals and programs designed to ("FmHA") guaranteed loan programs.81 Bank of assist in meeting the housing credit needs of low- and America also is a shareholder of and participant in the moderate-income borrowers in Washington. For exdevelopment of the Federal Agricultural Mortgage ample, SeaFirst has committed to maintain and ex- Corporation, a new secondary market for agricultural pand all Security Pacific agreements to finance resireal estate loans. dential housing rehabilitation programs operated by Washington. SeaFirst offers home mortgage loans to local governments and housing authorities.85 In addilow- and moderate-income consumers in Washington tion, SeaFirst will continue to provide borrowers through programs with flexible underwriting standards access to the Federal Home Loan Bank's Affordable such as BankAmerica's Neighborhood Advantage, Housing and Community Investment Fund Program introduced year-end 1990, and FHA and VA govern- and to participate in special home purchase and rehament-sponsored mortgage programs.82 SeaFirst origi- bilitation loan programs such as the FHA's 203(K) nated 796 home mortgage loans for low- and moderate- program and Security Pacific's Community Home income consumers for a total of $30 million in 1990.83 Improvement Mortgage Loan Program. SeaFirst also introduced BankAmerica's Neighbor- In addition, SeaFirst will continue Security Pacific's hood Advantage in 1991 for selected census tracts, and financial support of the loan pool maintained by the has committed $7 million to "House Key '92", a new Housing Finance Commission for multi-family and home loan program for first-time buyers sponsored by special needs housing loans. Security Pacific Bank the Washington State Housing Finance Commission Washington also participates with the Housing Fi- ("Housing Finance Commission"). nance Commission through Security Pacific Securi- SeaFirst provided $15.1 million in commitments to ties, a member of the Housing Finance Commission's finance affordable multi-family housing during the first investment banking group since 1990, to fund lowthree quarters of 1991, and SeaFirst has financed the income housing bond issues.86 SeaFirst has committed construction or rehabilitation of several dozen low- to acquire the expertise necessary to continue particincome housing developments.84 In addition, SeaFirst ipation in this program. SeaFirst has also committed to continue Security Pacific's support of other Housing Finance Commission programs, including the Special Nonprofit Assistance Program, a program for lending 79. Bank of America is currently reviewing the establishment of a to nonprofit organizations, and the Small Tax Exempt multibank community development corporation to finance economic Purchase ("STEP"), a program currently being develdevelopment in low-income neighborhoods in Los Angeles, and has oped by the Housing Finance Commission and Secucommitted to participate if the corporation is formed. 80. Bank of America managed as lead underwriter municipal rity Pacific.87 In addition, SeaFirst has committed to security transactions in California totalling $10.9 billion in 1990 and lend to nonprofit organizations through the Washing- $9.3 billion for the first three quarters of 1991. ton Refinance Assistance Partnership ("WRAP") pro- 81. Bank of America made new loans and renewals under FmHA programs totalling $1.1 million in 1990 and $1.5 million in the first three quarters of 1991. 82. Before the introduction of Neighborhood Advantage, SeaFirst offered purchase mortgage loans to low- and moderate-income bor- residential care facility for people with Acquired Immune Deficiency rowers through the SeaFirst Selects and General Electric Community Syndrome. Homebuyer's loan programs. SeaFirst also offers consumer credit and 85. SeaFirst has also committed as a general matter to analyze the services that are designed to help meet the needs of low- and products and programs that benefit low- and moderate-income areas moderate-income consumers. For example, SeaFirst is developing a and small businesses of Security Pacific Bank Washington and Secuconsumer loan product similar to Bank of America's B*A*S*I*C rity Pacific Savings Bank with the goal of maintaining and enhancing consumer loan product. SeaFirst will also begin an expanded educa- these programs. tional program using video tapes to acquaint customers with banking 86. Security Pacific's efforts have enabled the Housing Finance services. Commission to preserve more than $6 million in single family bond 83. In response to several comments criticizing SeaFirst's initiatives authority, thereby providing financing for over 100 additional homes in affordable housing for the Hilltop area of Tacoma, SeaFirst will statewide. continue its efforts to develop a productive finance program through 87. SeaFirst has also committed to explore with the Housing increased outreach to nonprofit organizations in this area. Finance Commission the development of new lending programs such 84. These developments include the Kingway apartments in Seattle, as employer assistance for first-time home buyers, reverse equity a new 64-unit Colby Crest project in Everett, the Jefferson Apartments mortgages, pilot loan programs for first-time buyers with unconvenin Tacoma, the Eastside Mental Health housing project in Bellevue, tional income sources, urban homesteading using non-financial equity the Walla Walla rehabilitation housing project and the rehabilitation of and the use of FHA and Fannie Mae programs for acquisition and low-income housing previously used by narcotics abusers in Yakima rehabilitation of single family homes in cooperation with nonprofit and Union Gap. Seafirst has also financed the construction of a sponsors and public entities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 353 gram. SeaFirst's lending commitment to the STEP and loan size of less than $41,000. In addition to providing WRAP programs is not less than an average of $3 small business credit products, SeaFirst is a partner in million each year for the next five years. SeaFirst also several community business development partnerintends to continue the existing programs of the Secu- ships and participates in numerous community busirity Pacific Community Service Corporation, including ness lending programs.92 programs for nonprofit developers of low-income and SeaFirst also provides SBA-guaranteed loans, origspecial needs housing. inating $4.1 million in 1990 and $3.2 million for the first SeaFirst also finances affordable housing by invest- three quarters of 1991. In addition, SeaFirst originated ing in tax credits. For example, in 1991 SeaFirst 75 SBA section 7a loans in 1991, for a total principal invested $1.2 million in low-income housing tax credits amount of $9.5 million. SeaFirst has set a goal of in three projects which will provide housing to families originating annually $36 million in small business with low and very low incomes during 1991. SeaFirst loans. SeaFirst is also a major agricultural lender in the has committed to the Housing Finance Commission to State of Washington and has $335.7 million outstandcontinue to invest on the basis of available tax credits ing in agricultural loans as of March 31, 1991. under Bank of America's commitment to the LISC at In addition, SeaFirst provides grants for operating a minimum level of $7 million.88 expenses and specific projects, as well as technical SeaFirst has announced annual goals to increase expertise and volunteer assistance to many organizalending for housing to a minimum of $112 million and tions.93 SeaFirst is also a significant underwriter of for underwriting $20 million of multi-family housing municipal bonds in the State of Washington and spebonds for a total period of five years.89 Progress in cializes in issues for hospital and school districts.94 meeting these goals will be monitored through Arizona. BankAmerica did not begin its operations SeaFirst's newly-established Community Develop- in Arizona until it established Bank of America Ariment Department. This department will also work with zona to acquire several failed or failing thrift institunon-profit developers, housing authorities and com- tions in mid-1990. Accordingly, its CRA programs are munity groups to coordinate funding for community not as well established as BankAmerica's CRA prodevelopment projects.90 grams in other states.95 Nevertheless, Bank of Amer- SeaFirst's small business lending is coordinated ica Arizona has put in place BankAmerica's corporate through its Community Business Center, which offers CRA policies discussed above and has initiated several credit lines and letters of credit for as little as $5,000 to steps to assist in meeting the credit needs of low- and all types of small businesses.91 Small business loans at moderate-income communities. SeaFirst currently total approximately $230 million. For example, Bank of America Arizona has in place Over 5,600 of SeaFirst's commercial loans in 1991 a Community Call and Needs Assessment Program. were in amounts of less than $250,000, with an average Through this program, bank officers meet with local government officials, neighborhood groups, community groups and residents to ascertain the credit needs of its service communities. Information from this 88. This commitment is subject to negotiations with BankAmerica and LISC. It is also subject to the issuance of sufficient tax credits by the Housing Finance Commission and SeaFirst's earning of sufficient profits to support the tax credit investments. In response to comments from a coalition of community groups, SeaFirst has committed, 92. For example, SeaFirst is a partner in the Greater Spokane subject to certain conditions, to offer generally bridge financing at Business Development Loan Program, a multi-bank effort committed below-market rates for local tax-credit and community projects such to fund $1.2 million in small business loans up to $50,000, and the as the Downtown Stabilization Pilot Program in Spokane and the Seattle Small Business Lenders Association where SeaFirst has Housing Bonus Program. BankAmerica has also agreed to allocate pledged $1 million over the next two years. These partnerships are $300,000 to fund technical assistance for non-profit developers and being used as models for others in other parts of Washington, public housing authorities in Washington. including Tacoma's Hilltop neighborhood, the Yakima Valley, and 89. SeaFirst has committed to acquire at least $10 million of these Pasco. Seafirst also participates in the Bellingham Revolving Loan bonds each year for its own portfolio. In addition, SeaFirst will Fund and the Colfax Loan Pool. negotiate with the Housing Finance Commission a program to en- 93. SeaFirst has committed to designate 10 percent of the SeaFirst hance the marketability of these bonds by issuing underlying letters of Foundation's budget to community development programs and to credit. continue its charitable support programs. SeaFirst has also invited 90. The Department is analyzing the existing community develop- grant requests from some of the Protestants for the purpose of funding ment programs of SeaFirst and Security Pacific to insure that they are statewide counseling programs, including a prepurchase counseling maintained, and in some cases, enhanced. In this regard, SeaFirst is program for low- and moderate-income neighborhoods and a mortgage considering participation in the Neighborhood Seattle program which default counseling program to be offered by trained nonprofit agenis designed to revitalize Seattle. cies. In addition, SeaFirst has committed to make grants to agencies 91. Small business lenders are placed throughout the Community with effective programs to assist the homeless. Business Center system to work with minority and small business 94. SeaFirst acted as manager or co-manager for 46 municipal bond development organizations, and to participate in small business sem- offerings totalling $295 million in 1991. inars and training. In addition to SBA programs, these organizations 95. Bank of America Arizona was created in connection with the include the Service Corps of Retired Executives and the Private acquisition of the assets and liabilities of Western Savings and Loan Industry Council. Association from the Resolution Trust Corporation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

354 Federal Reserve Bulletin • May 1992 process is used to develop and refine loan programs Vegas, Nevada, BankAmerica has committed to diand products in response to identified needs. Bank of vest Bank of America Nevada.98 Accordingly, Bank- America Arizona will also establish an advisory group America's CRA activities in Nevada will be conducted composed of senior bank officials, community group primarily through Valley Capital's established subsidrepresentatives, small business owners and affordable iary bank, Valley Bank of Nevada, Las Vegas, Nehousing representatives to monitor credit availability vada ("Valley Bank").99 Valley Bank received an for housing and other community credit needs. "outstanding" rating for CRA performance from the Bank of America Arizona currently offers several Federal Reserve Bank of San Francisco as of Novemcredit products designed for low- and moderate-in- ber 1991. come consumers and small businesses. In this regard, In response to comments from Nevada Protestants, Bank of America's Neighborhood Advantage program BankAmerica made commitments to enhance the CRA has been introduced in Arizona on a modified basis to efforts of Valley Bank. For example, BankAmerica help meet the credit needs of low-income neighbor- has established a specific lending goal of $18 million hoods in these counties.96 Bank of America Arizona over three years for affordable housing and has proplans to introduce by mid-year 1992 a home mortgage posed that two-thirds of the funds be allocated to product targeted to low- and moderate-income bor- projects that will serve very low-income households. rowers who do not reside in low- and moderate- In addition, BankAmerica has committed to increase income neighborhoods. In addition, Bank of America its efforts to reach minority borrowers through the Arizona will institute a down payment assistance Neighborhood Advantage program and to participate program. Home financing is also available through in a mortgage lending consortium with other lenders HUD, FHA and VA government-sponsored pro- that will target low- and moderate-income borrowgrams.97 Bank of America Arizona also provides sup- ers.100 BankAmerica has also committed to place an port for a housing project in south Phoenix and the affordable housing specialist in Las Vegas and to Tucson Affordable Housing Institute. Bank of Ameri- establish a new branch in West Las Vegas, subject to ca's B*A*S*I*C consumer loan program has been regulatory approval. offered in Arizona since mid-1991. In addition, Bank of America Arizona approved over $10 million in small E. Basic Banking Services business loans in 1991 and plans to offer SBA-guaranteed loans either directly or through an affiliate. Bank of America provides basic checking services in Bank of America Arizona has made several commit- California through the Limited Checking Account. In ments to enhance its CRA performance. For example, response to concerns expressed about this account, Bank of America Arizona has committed $3 million, BankAmerica has committed to incorporate features representing approximately 40 percent of the invest- more advantageous to low-income customers from the ment pool, to the Arizona Multibank Community limited checking account offered by Security Pacific Development Corporation and $50,000 over a two- National Bank.101 For example, BankAmerica has year period to open a Local Initiatives Support Cor- committed that Limited Checking Account customers poration office in Phoenix. Bank of America Arizona will be able to write an additional number of checks has also committed to operate branches with expanded and conduct two in-branch transactions per month customer hours in a chain of retail stores to increase without charge.102 Limited Checking Account customthe availability of its banking services to the community. Nevada. BankAmerica has operated a bank in Nevada only since December 1989, when it established 98. BankAmerica, supra. 99. Valley Bank's CRA performance will be supplemented by Silver Bank of America Nevada. In connection with its State Thrift and Loan Association, Reno, Nevada ("Silver State"), a recent acquisition of Valley Capital Corporation, Las savings association acquired by BankAmerica in year-end 1989. Silver State makes residential loans to low- and moderate-income borrowers in Nevada and has implemented Bank of America's B*A*S*I*C consumer loan product for lower-income consumer borrowers. 96. Under the Arizona Neighborhood Advantage program, the 100. BankAmerica will also provide technical assistance to nonrequired down payment has been reduced to 5 percent for $100,000 profit groups in Nevada. purchase money mortgages and fees for appraisals and documentation 101. BankAmerica will expand the Limited Checking Account and preparation have been waived. check cashing services of Bank of America to other BankAmerica 97. State Bank currently provides some financing for multifamily subsidiaries, including Nevada and Arizona. BankAmerica will also housing projects and subdivisions in Arizona. Financing activities for expand Valley National Corporation's checking plan for homeless low- and moderate-income housing will be augmented by a Bank- individuals to other branches in Nevada. America State Bank office in Phoenix in 1992. With the assistance of 102. Customers may continue to conduct an unlimited number of State Bank, Bank of America Arizona plans to focus its efforts on automatic teller machine ("ATM") transactions. The Limited Checkidentifying projects that will increase the supply of low- and moderate- ing Account requires a minimum opening balance of $25 with no income housing. monthly minimum balance required and a flat monthly fee for check- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 355 ers may also cash government checks without incur- BankAmerica's branch closure policy requires each ring a charge. In addition, Bank of America has subsidiary bank to consider the impact of a proposed committed to reduce its check cashing fee on govern- branch closing on the affected community. The policy ment checks for non-accountholders and will continue also requires a minimum 120-day notice period for any to cash welfare warrants for no fee. Bank of America branch closures in low- and moderate-income neighwill also cash checks and open accounts with only one borhoods to ensure that these communities will have piece of identification in California.103 sufficient time to raise their concerns before a final SeaFirst currently requires only one piece of iden- determination is made.107 tification to cash checks for noncustomers, and cus- In addition, BankAmerica is developing alternatives tomers using the Versatel Account, which is to increase branch banking services in lower-income SeaFirst's low cost transaction account, may obtain neighborhoods through means other than traditional teller assistance for a small charge for transactions that branches. For example, BankAmerica is developing cannot be conducted by telephone or at an ATM. plans to locate branches in retail food stores or in SeaFirst has also committed to reduce its charges for mobile vans. BankAmerica customers may also concashing all government checks and continue to cash duct retail banking services and apply for loans by Social Security checks for a small fee. telephone. F. Branch Locations and Closings G. 1990 HMD A Data and Lending Practices As a general matter, BankAmerica has committed to The Board has reviewed the 1990 HMD A data remaintain or enhance all existing levels of services ported by the subsidiary banks of BankAmerica and currently provided by Bank of America or Security Security Pacific. Due to recent amendments to the Pacific branches in all service areas. BankAmerica has HMD A, these banks were required for the first time in also committed that it will not create any new under- 1990 to collect certain information regarding applicaserved areas in lower-income areas as a result of the tions for bank mortgage loans and to report the inforproposal.104 Currently, over one-third of Bank of mation regarding both loan approvals and denials to America's California branches are located in lower- the banking agencies and the public. This information income communities and Bank of America estimates includes data on the race, gender and income of that service areas of over one-half of its California individual applicants, as well as the location of the branches contain lower-income census tracts.105 In property securing the potential loan and the disposiaddition, if a Bank of America or Security Pacific tion of the application. branch is the only insured bank or thrift institution The HMDA data for many of the subsidiary banks of providing financial services in a lower-income service BankAmerica and Security Pacific show disparities for area, BankAmerica has committed not to close or certain communities in rates for housing loan approvconsolidate that branch. In the case of redundant als, denials, and withdrawals that vary by racial or branches in an underserved lower-income area, ethnic group and income level. These data indicate BankAmerica has committed to attempt to sell one of that in general housing-related loan denial and withthe two branch locations to another financial institu- drawal rates were greater for minority loan applicants tion instead of closing it.106 as compared to non-minority applicants, low- and moderate-income applicants as compared to higherincome applicants, and minority applicants seeking ing account services. Bank of America does not impose a minimum loans in low- and moderate-income census tracts as income level on customers wishing to obtain an ATM card. compared to white applicants seeking loans in middle- 103. Bank of America will accept a driver's license, California or upper-income census tracts in a substantial number identification card or a current U.S. or foreign passport. 104. Some Protestants commented that the low- and moderate- of their service communities. A number of Protestants income neighborhoods in East Palo Alto, California, were underserved by bank branches and Bank of America has committed to explore providing access to branch banking services in that community. BankAmerica has also committed to continue its branch presence in South Central Los Angeles. 105. Some commenters have complained about the inconvenience of having to establish a new account with another banking institution branches in or in close proximity to these communities. In the event or at a less convenient location. BankAmerica will transfer all that a branch site cannot be sold, BankAmerica will consider the customer records and account histories to the new branch when feasibility of transferring the branch to a community based, non-profit branches are consolidated in order to minimize customer inconve- organization. nience. 107. This period is 30 days longer than the 90-day notice period 106. BankAmerica estimates that fewer than five nonredundant required for a branch closing by section 228 of the Federal Deposit branches in lower-income communities will be consolidated in Cali- Insurance Corporation Improvement Act of 1992, Pub. L. No. 102— fornia as a result of this proposal. BankAmerica will continue to have 242, 105 Stat. 2308 (to be codified at 12 U.S.C. § 1831p). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

356 Federal Reserve Bulletin • May 1992 have alleged illegal discriminatory lending practices on "appraisal ombudsperson" who is authorized to overthe basis of these data.108 rule field appraisers under appropriate circumstances. Because all banks are obligated to ensure that their Consultants have been retained by BankAmerica for lending practices are based not only on criteria that the purpose of analyzing HMDA data and providing assure safe and sound lending, but also assure equal assistance to BankAmerica to increase lending opporaccess to credit by creditworthy applicants regardless tunities in low- and moderate-income and high minorof race, the Board is concerned when the record of an ity census tracts. SeaFirst also has hired a consultant institution indicates disparities in lending to minority to assist in analyzing lending data, tracking loans by applicants. The Board recognizes, however, that geographic area, and improving its service to low- and HMDA data alone provide only a limited measure of moderate-income communities. any given institution's lending in the communities that BankAmerica has also committed to a $12 billion, the institution serves. The Board also recognizes that 10-year goal for expanding the current levels of its HMDA data have limitations that make the data an CRA-related lending. Under this plan, specific annual inadequate basis, absent other information, for con- lending goals are set for the purpose of extending clusively determining whether an institution has en- credit to economically underserved areas, low- and gaged in illegal discrimination on the basis of race or moderate-income consumers, and small businesses as ethnicity in making lending decisions. follows: The most recent examinations for CRA compliance (1) $750 million for lower-income and minority home and performance conducted by bank supervisory mortgage loans; agencies found no evidence of illegal discrimination or (2) $150 million for construction of low-income other illegal credit practices in any subsidiary bank of rental housing; BankAmerica or Security Pacific. In many cases, (3) $200 million in conventional small business loans these examinations included sampling of loan rejec- under $50,000; tions by the primary supervisory agency. (4) $100 million in government-guaranteed small BankAmerica has also taken steps designed to im- business loans; and prove its lending to minorities and low- and moderate- (5) $12 million in lower-income consumer credit.110 income neighborhoods. For example, Bank of America and other subsidiary banks have initiated a Subsidiary banks, however, retain the flexibility to requirement of three levels of review before a loan reallocate funds to meet the individualized needs of application from a minority borrower or involving their communities.111 property located in a low- and moderate-income cen- Several commenters have advocated various mechsus tract is denied. Any recommended denial for such anisms for community input and monitoring of Bankloans by an underwriter must receive the concurrence America's efforts to achieve these CRA lending goals. of a senior underwriter at the bank and the central Bank of America has responded that it will establish an underwriting staff at Bank of America's headquarters advisory board that will include members of local in San Francisco before the application is finally community groups for the purpose of monitoring progdenied. Bank of America also will designate a staff of ress towards these goals. In addition, BankAmerica loan production officers to focus exclusively on origi- has agreed to facilitate ongoing monitoring by communating purchase money mortgages from low- and mod- nity groups by preparing quarterly progress reports. erate-income areas.109 Quarterly reports will also be submitted by all subsid- In addition, BankAmerica has started a pilot program in South Central Los Angeles requiring a review of appraisals made on properties located in low- and 110. In states where the proposal received the most comments, moderate-income census tracts where the appraised annual lending would be allocated as follows: California—$787.2 value of the property is less than the amount requested million (aggregate total: $7.8 billion); Washington—$150 million (aggregate total: $1.5 billion); Arizona—$81.6 million (aggregate total: by the borrower. BankAmerica has also appointed an $816 million); and Nevada—$24 million (aggregate total: $240 million). 111. For example, SeaFirst has committed to allocate its lending in the first year in these areas as follows: (1) $93.75 million for home loans in lower income areas and other 108. These allegations have been made by Protestants in various special housing-related lending; states served by BankAmerica and Security Pacific and in local (2) $18.75 million for construction and rehabilitation of low-income, communities such as South Central Los Angeles, Oakland, Reno, Las multi-family housing; Vegas, San Francisco, Seattle and Tacoma. (3) $24 million for conventional small business loans of less than 109. BankAmerica also plans to introduce in California and Arizona $50,000; a mortgage loan program similar to the Neighborhood Advantage (4) $12 million for government-guaranteed and other special small program that will be available to low- and moderate-income consum- business loans; and ers even if the property is not located in a low- or moderate-income (5) $1.5 million for consumer loans targeted to low- and moderatecensus tract. income customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 357 iary banks to BankAmerica's Public Policy Committee commenters and identified in the examination process and Board of Directors.112 The efforts of BankAmerica for certain of the banks. to implement this program will be monitored by the In this light, after carefully considering all the facts federal banking agencies through the examination pro- of record, including the testimony at the public meetcess and will be taken into account in future applica- ings, the comments received, and relevant examinations by BankAmerica to expand its deposit-taking tion reports, the Board concludes that the convenience facilities. and needs considerations, including the CRA records of performance of BankAmerica and Security Pacific, H. Conclusion Regarding Convenience and are consistent with approval of these applications. The Needs Factors Board expects BankAmerica to implement fully the CRA initiatives and commitments announced by its The Board has carefully considered the entire record, subsidiary banks and will monitor its progress in including the substantial public comment in this case, implementing these initiatives and commitments in the in reviewing the convenience and needs factor under examination process and in future applications to the BHC Act. A number of commenters have raised expand its deposit-taking facilities.113 The Board also both specific and general concerns about the adequacy concludes that the other factors it must review under of BankAmerica's existing CRA programs and the section 3 of the BHC Act are consistent with approval. effect of the proposal on the availability of future banking services to low- and moderate-income areas. Nonbanking Activities Other commenters believe that current CRA programs were very productive in their community and expect BankAmerica has applied under section 4(c)(8) of the that the proposed merger would add financial strength BHC Act to acquire the nonbanking subsidiaries of to these existing programs. Based on a review of the Security Pacific. The Board has determined by reguentire record of performance, including information lation or order that each of the activities of these provided by the commenters and the performance companies is closely related to banking and generally examinations by the banks' primary regulators, the permissible for bank holding companies under section Board believes that the efforts by BankAmerica and 4(c)(8) of the BHC Act, and has approved applications Security Pacific to help meet the credit needs of all by Security Pacific to own shares in each of these segments of the communities served by these banks, companies. BankAmerica has committed to abide by including low- and moderate-income neighborhoods, all of the parameters, conditions and commitments are generally satisfactory. relied on by the Board in the relevant orders and The Board recognizes that the record compiled in regulations regarding these companies. these applications points to areas for improvement in Among the nonbanking subsidiaries that BankAmerthe CRA performance of BankAmerica. In this regard, ica has applied to acquire is Security Pacific Securi- BankAmerica has announced enhancements to a num- ties, Inc., Seattle, Washington ("Company"). The ber of its products, services and marketing ap- Board has previously authorized Security Pacific to proaches, as well as other initiatives which have been engage through this company in underwriting and discussed above. These initiatives, together with dealing in, on a limited basis: BankAmerica's minimum goal of $12 billion in CRArelated lending, are designed to increase housing- 113. Several Protestants have requested that the Board hold a related and other types of credit in low- and moderateformal public evidentiary hearing on the applications. Generally, income and minority neighborhoods, and to small under the Board's rules, the Board may, in its discretion, hold a public businesses. The Board believes that these initiatives, hearing or meeting on an application to clarify factual issues related to the application and to provide an opportunity for testimony, if and others proposed by BankAmerica, will help appropriate. 12 U.S.C. §§ 263.3(e) and 262.25(d). BankAmerica's subsidiary banks improve their CRA The Board has carefully considered requests for a formal public performance and address weaknesses described by hearing in this case. The Board has provided an extended period for public comment in this case, permitting interested persons a substantial period to provide written comments, and commenters have submitted substantial written and oral comments that have been considered by the Board. The Board also notes that it held four public meetings on this application. The Protestants requesting a formal 112. Some commenters have requested the Board to condition its public evidentiary hearing have indicated general disagreement reapproval on adoption of specific commitments recommended by the garding the appropriate conclusions to be drawn from the facts of particular commenter. In a number of instances, BankAmerica has record, but have not identified facts that are material to the Board's agreed to the suggested commitments. The Board believes that decision and that are in dispute. In light of this, the Board has BankAmerica's CRA lending goals are flexible enough to accommo- determined that a public hearing is not necessary to clarify the factual date continuing community input on specific proposals and the mon- record in these applications, or otherwise warranted in this case. itoring procedure will provide an opportunity for these groups to have Accordingly, these requests for a formal public hearing on this input in the allocation of the lending funds. application are hereby denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

358 Federal Reserve Bulletin • May 1992 (a) municipal revenue bonds, including certain in- Company, Seattle, Washington ("Rainier"), to condustrial development bonds; tinue, following their acquisition by BankAmerica, to (b) residential mortgage-related securities; conduct insurance agency activities pursuant to sec- (c) consumer-receivable-related securities; and tion 4(c)(8)(D) of the BHC Act ("Exemption D").115 (d) commercial paper. Both SP Agency and Rainier sell single- and dualinterest property insurance protecting collateral for BankAmerica has committed to abide by all of the loans made by Security Pacific's lending subsidiaries parameters, conditions and commitments relied on by ("physical damage insurance") in California and the Board in approving these activities.114 Washington, respectively. Exemption D grandfa- BankAmerica operates subsidiaries engaged in non- thers insurance agency activities that were "engaged banking activities that compete with many of the in" by the bank holding company or any of its nonbanking subsidiaries of Security Pacific. In each subsidiaries on "May 1, 1982." BankAmerica has case, the markets for these nonbanking services are provided evidence that SP Agency and Ranier were unconcentrated and there are numerous providers of engaged in selling physical damage insurance on May these services. In light of these facts, and the shares of 1, 1982.116 each of these markets controlled by BankAmerica and SP Agency and Rainier will remain separate subsid- Security Pacific, the Board concludes that consumma- iaries of BankAmerica, and their grandfathered insurtion of this proposal would not have a significantly ance activities will not be conducted by any of Bankadverse effect on competition for these services in any America's other subsidiaries.117 Based on the record, relevant market. the Board has determined that SP Agency and Rainier The evidence of record does not indicate that ap- may continue to engage in insurance activities pursuproval of the proposed acquisition of any of the ant to Exemption D following its acquisition by nonbanking subsidiaries of Security Pacific, within the BankAmerica.118 bounds, conditions and commitments relied on by the Board in its orders governing these companies, would result in significantly adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices that are not outweighed by public benefits. 115. 12 U.S.C. § 1843(c)(8)(D). Exemption D permits a bank holding company to engage in "any insurance activity which was Accordingly, the Board has determined that the balengaged in by the bank holding company or any of its subsidiaries on ance of public interest factors that the Board must May 1, 1982." Such activities may be conducted in the grandfathered consider under section 4(c)(8) of the BHC Act is company's home state, states adjacent thereto, or any state where the company was authorized to operate an insurance business before the favorable and consistent with approval. The Board's grandfather date. The Board has previously determined that an approval of BankAmerica's acquisition of Company insurance agency that is entitled to continue to sell insurance under extends only to activities conducted within the param- Exemption D does not lose its grandfathered rights if the agency is acquired by another bank holding company, provided the agency eters of this order and the Board's previous orders maintains its separate corporate structure and its insurance activities approving the activities of Company, including the are not extended to other subsidiaries within the acquiror's organization. Sovran Financial Corporation, 73 Federal Reserve Bulletin 672 Board's reservation of authority to establish additional (1987) ("Sovran"). This determination has been upheld by the courts. limitations to ensure that Company's activities are National Ass'n of Casualty and Surety Agents v. Board of Governors, consistent with safety and soundness, conflicts of 856 F.2d 282, reh'g denied en banc, 862 F.2d 351 (D.C. Cir. 1988), cert, denied, 490 U.S. 1090 (1989). interests, and other relevant considerations under the 116. The types of evidence presented were consistent with the types BHC Act. Underwriting and dealing in any manner of evidence relied upon by the Board in previous orders in which the Board found that a company met the requirements of Exemption D. other than as approved in this order is not within the See MidAmerican Corporation, 76 Federal Reserve Bulletin 559 scope of the Board's approval and is not authorized for (1990); Citicorp, 76 Federal Reserve Bulletin 70 (1990). Company. 117. This condition is not intended to preclude BankAmerica from seeking Board approval to merge SP Agency and Rainier into one subsidiary or merge them into other subsidiaries of BankAmerica and Insurance Agency Subsidiaries continue to engage through the resulting company in insurance agency activities under Exemption D if the merger is for legitimate business purposes and otherwise conforms with the limitations in this order and BankAmerica has also requested Board approval to the requirements of the Board's regulations. See 12 C.F.R. permit SP Insurance Agency, Inc., Los Angeles, 225.25(b)(8)(iv), footnote 10. California ("SP Agency"), and Rainier Mortgage 118. Pursuant to Exemption D, the insurance agency activities of SP Agency may be conducted only in California, states adjacent to California, or states in which this company lawfully engaged in insurance activities on May 1, 1982. The insurance agency activities of 114. Security Pacific Corporation, 73 Federal Reserve Bulletin 622 Rainier may be conducted only in Washington, states adjacent to (1987); Security Pacific Corporation, 73 Federal Reserve Bulletin 731 Washington, or states in which Rainier lawfully engaged in insurance (1987). activities on May 1, 1982. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 359 International Subsidiaries and Branches any of its subsidiaries as the Board finds necessary to assure compliance with, or to prevent evasion of, the The Board has also considered BankAmerica's pro- provisions and purposes of the BHC Act and the posal to acquire Security Pacific Overseas Corporation Board's regulations and orders issued thereunder. All and Security Pacific International Bank under the of the commitments and conditions relied on by the Edge Act and to establish branches in certain coun- Board in reaching its decision in this case are conditries in which neither BankAmerica nor any of its tions imposed in writing by the Board in connection affiliates have branches. Based on the facts of record, with its findings and decision and may be enforced and for the reasons discussed in this order, the Board under applicable laws. believes that the financial and managerial resources of The proposal shall not be consummated before the Bank of America and SeaFirst are consistent with thirtieth calendar day following the effective date of approval of the acquisition of these corporations and this Order, and the proposed bank and nonbank acquibranches. The acquisitions would result in the contin- sition shall not be consummated later than three uation of international services currently provided and months after the effective date of this Order, unless would be in the public interest. Accordingly, the such period is extended for good cause by the Board or Board finds that the continued operation of these the Federal Reserve Bank of San Francisco, acting corporations and branches upon acquisition by Bank pursuant to delegated authority. of America and SeaFirst is consistent with the Edge By order of the Board of Governors, effective Act and Regulation K. March 23, 1992. The Board has also considered BankAmerica's proposal to acquire all of the foreign subsidiaries, joint Voting for this action: Chairman Greenspan and Governors ventures and portfolio investments held by Security Mullins, Angell, Kelley, LaWare, Lindsey, and Phillips. Pacific pursuant to section 4(c)(13) of the BHC Act and Regulation K. After consideration of all the factors JENNIFER J. JOHNSON Associate Secretary of the Board specified in Regulation K and based on all of the facts of record, the Board has determined that disapproval of these proposed investments is not warranted. Appendix A Conclusion Bank Subsidiaries to be Acquired: Based on all of the facts of record, including all of the (1) Security Pacific Bancorporation Northwest, Secommitments made by BankAmerica in its application attle, Washington; as amended and supplemented, and for the reasons (2) Security Pacific Bank Alaska, N.A., Anchorage, discussed in this Order, the Board has determined that Alaska. the balance of factors that it must consider is favorable (3) Security Pacific Bank, National Association, and that the applications should be, and hereby are, Tempe, Arizona. approved. As noted in this Order, the Board's ap- (4) Security Pacific State Bank, Costa Mesa, Caliproval is expressly conditioned upon compliance with fornia. all of the commitments made by BankAmerica in (5) Security Pacific National Bank, Los Angeles, connection with this application, including all of the California. capital commitments, divestiture commitments made (6) Security Pacific Bank Idaho, N.A., Coeur as part of the amended application in this case, and the d'Alene, Idaho. commitments and initiatives relating to BankAmeri- (7) Security Pacific Bancorporation Southwest, ca's performance under the CRA. The Board's ap- Phoenix, Arizona; proval is also conditioned on compliance with the (8) Security Pacific Bank Arizona, Phoenix, Aricommitments made by BankAmerica to comply with zona; the relevant previous Board Orders governing the (9) Security Pacific Bank Nevada, National Associnonbanking activities of Security Pacific. The determi- ation, Las Vegas, Nevada. nation as to the nonbanking activities approved in this (10) Security Pacific National Trust Company (New case is also subject to all of the conditions contained in York), New York, New York. Regulation Y, including those in sections 225.4(d) and (11) Security Pacific Bank Oregon, Portland, Ore- 225.23(b)(3) (12 C.F.R. 225.4(d) and 225.23(b)(3)), and gon. to the Board's authority to require such modification (12) Security Pacific Oregon BanCorp, Portland, or termination of the activities of a holding company or Oregon. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

360 Federal Reserve Bulletin • May 1992 (13) Sequor National Bank Texas, Dallas, Texas. engage in commercial and/or consumer finance pur- (14) Security Pacific Bank Washington, N.A., Seat- suant to § 225.25(b)(1) of the Board's Regulation Y. tle, Washington. (11) Security Pacific Financial Services of Florida (15) Security Pacific Savings Bank, Tacoma, Wash- Inc., San Diego, California, and thereby engage in ington. commercial and/or consumer finance pursuant to § 225.25(b)(1) of the Board's Regulation Y. (16) Emerald City Bank, Seattle, Washington.1 (12) Security Pacific Financial Services of Iowa Inc., San Diego, California, and thereby engage in com- Nonbanking Subsidiaries to be Acquired:1 mercial and/or consumer finance pursuant to (1) First Fenwick Mortgage Corporation, San Diego, § 225.25(b)(1) of the Board's Regulation Y. California, and thereby engage in commercial and/or (13) Security Pacific Financial Services of Minneconsumer finance pursuant to § 225.25(b)(1) of the sota Inc., San Diego, California, and thereby engage Board's Regulation Y. in commercial and/or consumer finance pursuant to (2) Ranier Industrial Loan Company, Seattle, Wash- § 225.25(b)(1) of the Board's Regulation Y. ington, and thereby engage in commercial and/or (14) Security Pacific Financial Services of New consumer finance pursuant to § 225.25(b)(1) of the York Inc., San Diego, California, and thereby en- Board's Regulation Y and in operating an industrial gage in commercial and/or consumer finance pursuloan company, as authorized by state law, pursuant ant to § 225.25(b)(1) of the Board's Regulation Y. to § 225.25(b)(2) of the Board's Regulation Y. (15) Security Pacific Housing Services, Inc., San (3) Security Pacific Business Credit, Inc., San Diego, California, and thereby engage in commer- Diego, California, and thereby engage in commer- cial and/or consumer finance pursuant to cial and/or consumer finance pursuant to § 225.25(b)(1) of the Board's Regulation Y. § 225.25(b)(1) of the Board's Regulation Y. (16) Security Pacific Realty Corp., San Diego, Cal- (4) Security Pacific Consumer Discount Company, ifornia, and thereby engage in commercial and/or San Diego, California, and thereby engage in com- consumer finance pursuant to § 225.25(b)(1) of the mercial and/or consumer finance pursuant to Board's Regulation Y. § 225.25(b)(1) of the Board's Regulation Y. (17) Security Pacific Southwest Financial Services (5) Security Pacific Corporate Funding Inc., Los Company, Phoenix, Arizona, and thereby engage in Angeles, California, and thereby engage in commer- commercial and/or consumer finance pursuant to cial and/or consumer finance pursuant to § 225.25(b)(1) of the Board's Regulation Y. § 225.25(b)(1) of the Board's Regulation Y. (18) Security-First CMO-I Corporation, Cypress, (6) Security Pacific Executive/Professional Services California, and thereby engage in commercial and/or Inc., San Dimas, California, and thereby engage in consumer finance pursuant to § 225.25(b)(1) of the commercial and/or consumer finance pursuant to Board's Regulation Y. § 225.25(b)(1) of the Board's Regulation Y. (19) Security Pacific Acceptance Corp., San Diego, (7) Security Pacific Credit Corporation, San Diego, California, and thereby engage in commercial and/or California, and thereby engage in commercial and/or consumer finance pursuant to § 225.25(b)(1) of the consumer finance pursuant to § 225.25(b)(1) of the Board's Regulation Y. Board's Regulation Y. (20) Security Pacific Acceptance Corp. II, San (8) Security Pacific Finance Credit Corp., San Diego, Diego, California, and thereby engage in commer- California, and thereby engage in commercial and/or cial and/or consumer finance pursuant to consumer finance pursuant to § 225.25(b)(1) of the § 225.25(b)(1) of the Board's Regulation Y. Board's Regulation Y. (21) Security Pacific E/P Assets, Inc., San Diego, (9) Security Pacific Financial Services Inc., San California, and thereby engage in commercial and/or Diego, California, and thereby engage in commer- consumer finance pursuant to § 225.25(b)(1) of the cial and/or consumer finance pursuant to Board's Regulation Y. § 225.25(b)(1) of the Board's Regulation Y. (22) Security Pacific Leasing Services Corporation, (10) Security Pacific Financial Services of Des San Francisco, California, and thereby engage in Moines Inc., San Diego, California, and thereby commercial and/or consumer finance pursuant to § 225.25(b)(1) of the Board's Regulation Y. (23) American Finance Corporation, San Diego, California, an inactive company, and thereby en- 1. This appendix includes only those nonbanking subsidiaries with gage in making or servicing loans pursuant to authority to engage in actvities pursuant to section 4(c)(8) of the BHC Act. § 225.25(b)(1) of the Board's Regulation Y. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 361 (24) Orbanco Real Estate Services Co., Portland, providing discount securities brokerage pursuant to Oregon, an inactive company, and thereby engage in § 225.25(b)(15) of the Board's Regulation Y. making or servicing loans pursuant to § 225.25(b)(1) (35) MCOG Leasing Corp., San Francisco, Califorof the Board's Regulation Y. nia, and thereby engage in personal and real property (25) Rainier Bancorporation, Seattle, Washington, leasing and furnishing investment, financial and ecoan inactive company, and thereby engage in making nomic advisory services regarding such leasing puror servicing loans pursuant to § 225.25(b)(1) of the suant to § 225.25(b)(5) of the Board's Regulation Y. Board's Regulation Y. (36) Security Pacific Capital Leasing Corporation, (26) Rainier Mortgage Company, Seattle, Washing- San Francisco, California, and thereby engage in ton, and thereby engage in making or servicing loans personal and real property leasing and furnishing pursuant to § 225.25(b)(1) of the Board's Regulation investment, financial and economic advisory ser- Y and in the sale as agent of property insurance vices regarding such leasing pursuant to protecting collateral on loans made by subsidiaries of § 225.25(b)(5) of the Board's Regulation Y. Security Pacific, which is an activity that company (37) Security Pacific Credit Corporation, San Diego, engaged in prior to May 1, 1982, as permitted under California, and thereby engage in personal and real § 225.25(b)(8)(iv) of the Board's Regulation Y. property leasing and furnishing investment, financial (27) Security Pacific Automotive Financial Services and economic advisory services regarding such leas- Corp., San Diego, California, an inactive com- ing pursuant to § 225.25(b)(5) of the Board's Regupany, and thereby engage in making or servicing lation Y. loans pursuant to § 225.25(b)(1) of the Board's (38) Security Pacific Leasing Services Corporation, Regulation Y. San Francisco, California, and thereby engage in (28) Security Pacific Mortgage Corporation, San personal and real property leasing and furnishing Diego, California, and thereby engage in making or investment, financial and economic advisory serservicing loans pursuant to § 225.25(b)(1) of the vices regarding such leasing pursuant to Board's Regulation Y. § 225.25(b)(5) of the Board's Regulation Y. (29) Security Pacific Financial Services of West (39) Security Pacific Leasing Corporation, San Fran- Virginia Inc., San Diego, California, and thereby cisco, California, and thereby engage in personal and engage in operating an industrial loan company, as real property leasing pursuant to § 225.25(b)(5) of the authorized by state law, pursuant to § 225.25(b)(2) Board's Regulation Y and in leasing personal propof the Board's Regulation Y. erty, and acting as agent, broker, or adviser in leasing (30) Security Pacific Industrial Loan Company, such property, including leasing transactions that Bellevue, Tacoma, and thereby engage in operating allow this company to rely for its compensation on an an industrial loan company, as authorized by state estimated residual value of the leased property at the law, pursuant to § 225.25(b)(2) of the Board's Reg- expiration of the initial lease term of up to 100 ulation Y. percent of the acquisition cost of the property in (31) SP Escrow Service, Inc., Los Angeles, San accordance with the Board's Order in Security Pa- Diego, and San Bernardino, California, and thereby cific Corporation, 76 Federal Reserve Bulletin 462 engage in providing trust services pursuant to (1990). § 225.25(b)(3) of the Board's Regulation Y. (40) Security Pacific Community Service Corpora- (32) Security Pacific Clearing & Services Corp., tion, Seattle, Washington, and thereby engage in Jersey City, New Jersey, and thereby engage in making debt and equity investments in corporations clearing fixed income securities in a fiduciary capac- or projects designed to promote community welfare, ity and making call loans to securities dealers pursu- including the purchase, construction, rehabilitation, ant to § 225.25(b)(3) of the Board's Regulation Y. restoration, and sales of residential and commercial (33) Security Pacific Investment Managers, Inc., properties, pursuant to § 225.25(b)(6) of the Board's Los Angeles, California, and thereby engage in Regulation Y. furnishing investment, financial and economic ad- (41) Security Pacific Information Services Corporavisory services pursuant to § 225.25(b)(4) of the tion, San Diego, California, Denver, Colorado, and Board's Regulation Y. New York, New York, and thereby engage in pro- (34) Security Pacific Investments, Inc., a Washing- viding to others data processing and data transmiston Corporation, Seattle, Washington, and thereby sion services with respect to banking data, pursuant engage in providing portfolio investment advice to § 225.25(b)(7) of the Board's Regulation Y. regarding fixed income municipal bonds pursuant to (42) Security Pacific Automation Company, Inc., Los § 225.25(b)(4)(iii) of the Board's Regulation Y and in Angeles, California, and other locations in California, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

362 Federal Reserve Bulletin • May 1992 Delaware, and Oregon, and thereby engage in pro- agent of insurance directly related to an extension of viding to others data processing and data transmis- credit by Security Pacific or its subsidiaries and sion services with respect to banking data, pursuant limited to ensuring the repayment of the outstanding to § 225.25(b)(7) of the Board's Regulation Y. balance due on the extension of credit in the event of (43) American Data Services, Inc., Los Angeles, death, disability or involuntary unemployment of California, and thereby engage in providing to the debtor pursuant to § 225.25(b)(8)(i) of the others data processing and data transmission ser- Board's Regulation Y and in the sale as agent or vices with respect to banking data, pursuant to broker for insurance directly related to extensions of § 225.25(b)(7) of the Board's Regulation Y. credit by finance company subsidiaries of Security (44) Chartered Protective Life Insurance Company, Pacific pursuant to § 225.25(b)(8)(ii) of the Board's San Diego, California, and thereby engage in the Regulation Y. sale as principal of insurance directly related to an (49) General Fidelity Insurance Company, San Diextension of credit by Security Pacific or its sub- ego, California, and thereby engage in the sale as sidiaries and limited to ensuring the repayment of principal of insurance directly related to an extenthe outstanding balance due on the extension of sion of credit by Security Pacific or its subsidiaries credit in the event of death and disability of the and limited to ensuring the repayment of the outdebtor pursuant to § 225.25(b)(8)(i) of the Board's standing balance due on the extension of credit with Regulation Y. respect to involuntary unemployment of the debtor (45) General Fidelity Life Insurance Company, San pursuant to § 225.25(b)(8)(i) of the Board's Regula- Diego, California, and thereby engage in the sale as tion Y. principal of insurance directly related to an exten- (50) SP Insurance Agency, Inc., San Diego, Califorsion of credit by Security Pacific or its subsidiaries nia, and thereby engage in the sale as agent of and limited to ensuring the repayment of the out- insurance directly related to an extension of credit standing balance due on the extension of credit in by Security Pacific or its subsidiaries and limited to the event of death and disability of the debtor ensuring the repayment of the outstanding balance pursuant to § 225.25(b)(8)(i) of the Board's Regula- due on the extension of credit in the event of death, tion Y. disability or involuntary unemployment of the (46) Dealers Credit, Inc., San Diego, California, and debtor pursuant to § 225.25(b)(8)(i) of the Board's thereby engage in the sale as agent of insurance Regulation Y and in the sale as agent of property directly related to an extension of credit by Security insurance protecting collateral on loans made by Pacific or its subsidiaries and limited to ensuring the subsidiaries of Security Pacific, which is an activity repayment of the outstanding balance due on the that company engaged in prior to May 1, 1982, as extension of credit in the event of death, disability permitted under § 225.25(b)(8)(iv) of the Board's or involuntary unemployment of the debtor pursu- Regulation Y. ant to § 225.25(b)(8)(i) of the Board's Regulation Y (51) Security Pacific Southwest Insurance Agency, and in the sale as agent or broker for insurance Inc., Phoenix, Arizona, an inactive company, and directly related to extensions of credit by finance thereby act as principal, agent, or broker for creditcompany subsidiaries of Security Pacific pursuant to related insurance pursuant to § 225.25(b)(8)(i) of the § 225.25(b)(8)(ii) of the Board's Regulation Y. Board's Regulation Y. (47) Security Pacific Financial Services of Nevada (52) Security Pacific Securities, Inc., Seattle, Wash- Inc., San Diego, California, and thereby engage in ington, and thereby engage in underwriting and the sale as agent of insurance directly related to an dealing in "bank-eligible" securities pursuant to extension of credit by Security Pacific or its subsid- § 225.25(b)(16) of the Board's Regulation Y; in iaries and limited to ensuring the repayment of the underwriting and dealing in, on a limited basis, the outstanding balance due on the extension of credit in following securities: the event of death, disability or involuntary unem- (a) municipal revenue bonds, including certain ployment of the debtor pursuant to § 225.25(b)(8)(i) industrial development bonds; of the Board's Regulation Y and in the sale as agent (b) residential mortgage-related securities; or broker for insurance directly related to exten- (c) consumer-receivable-related securities; and sions of credit by finance company subsidiaries of (d) commercial paper; as authorized by Board Security Pacific pursuant to § 225.25(b)(8)(ii) of the Orders. Board's Regulation Y. Security Pacific Corporation, 73 Federal Reserve Bul- (48) Midwestern Agency Corporation, Inc., San letin 622 (1987); Security Pacific Corporation, 73 Fed- Diego, California, and thereby engage in the sale as eral Reserve Bulletin 731 (1987). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 363 Appendix B markets. Upon consummation and after giving effect to the proposed divestitures, BankAmerica would State-wide deposit information for the states in which become the largest insured depository institution in BankAmerica and Security Pacific compete directly. the state and would hold deposits of $11.9 billion, Deposit data are as of June 30, 1990, unless otherwise representing approximately 32.8 percent of state denoted. posits. 1. California 4. Oregon BankAmerica owns the largest of 528 insured depos- BankAmerica owns the third largest of 63 insured itory institutions in California, holding $57.5 billion depository institutions in Oregon, holding $2.3 billion in deposits, representing approximately 13.1 percent in deposits, representing approximately 8.9 percent of of the total deposits in insured depository institutions state deposits. Security Pacific owns the seventh largin the state ("state deposits"). Security Pacific owns est insured depository institution in Oregon, holding the third largest insured depository institution in $1.1 billion in deposits, representing approximately 4.2 California, holding $39.7 billion in deposits, repre- percent of state deposits. In order to mitigate the senting approximately 9.0 percent of state deposits. potentially anti-competitive effect of the proposal in In order to mitigate the potentially anti-competitive Oregon banking markets, BankAmerica has proposed effect of the proposal in California banking markets, to divest branches and offices representing deposits of BankAmerica has proposed to divest branches and approximately $79.6 million in two Oregon banking offices representing deposits of approximately $1.9 markets. Upon consummation and after giving effect billion in numerous California banking markets. to the proposed divestitures, BankAmerica would Upon consummation of this proposal and after giving continue to own the third largest insured depository effect to the proposed divestitures, BankAmerica institution in the state and would hold deposits of $3.4 billion, representing approximately 13.1 percent of would continue to own the largest insured depository state deposits. institution in the state and would hold deposits of $95.4 billion, representing approximately 21.7 per- 5. Nevada cent of state deposits. BankAmerica owns the second largest of 25 insured 2. Washington depository institutions in Nevada, holding $2.8 billion BankAmerica owns the largest of 120 insured deposi- in deposits, representing approximately 29.9 percent tory institutions in Washington, holding $9.5 billion in of state deposits.1 Security Pacific owns the fourth deposits, representing approximately 19.7 percent of largest insured depository institution in Nevada, holdstate deposits. Security Pacific owns the second larg- ing $725.1 million in deposits, representing approxiest insured depository institution in Washington, hold- mately 6.2 percent of state deposits. In order to ing $6.8 billion in deposits, representing approximately mitigate the potentially anti-competitive effect of the 14.0 percent of the state deposits. In order to mitigate proposal in Nevada banking markets, BankAmerica the potentially anti-competitive effect of the proposal has proposed to divest branches and offices representin Washington banking markets, BankAmerica has ing deposits of approximately $864 million in numerproposed to divest branches and offices representing ous Nevada banking markets. Upon consummation approximately $3.3 billion in numerous Washington and after giving effect to the proposed divestitures, banking markets. Upon consummation and after giv- BankAmerica would continue to own the second largest insured depository institution in the state and ing effect to the proposed divestitures, BankAmerica would hold deposits of $2.8 billion, representing apwould own the largest insured depository institution in proximately 29.0 percent of state deposits. Washington, holding deposits of $13.8 billion, representing approximately 28.5 percent of state deposits. 6. Texas 3. Arizona BankAmerica owns the 30th largest of 1,255 insured BankAmerica owns the second largest of 47 insured depository institutions in Texas, holding $827.3 million depository institutions in Arizona, holding $7.9 billion in deposits, representing less than one percent state in deposits, representing approximately 21.7 percent of state deposits. Security Pacific owns the third 1. The Board recently approved BankAmerica's proposal to acquire largest insured depository institution in Arizona, hold- Valley Capital Corporation, Las Vegas, Nevada. BankAmerica Coring $6.2 billion in deposits, representing approximately poration, 78 Federal Reserve Bulletin 299 (1992). In connection with that proposal, BankAmerica will retain Valley Capital but will divest 17.1 percent of state deposits. In order to mitigate the of all the operations of BankAmerica Nevada, its current bank potentially anti-competitive effect of the proposal in subsidiary in Nevada. Valley Capital is the second largest insured Arizona banking markets, BankAmerica has proposed depository institution in Nevada. In light of the proposed acquisition of Valley Capital and divestiture of BankAmerica Nevada, the comto divest branches and offices representing deposits of petitive effect of the BankAmerica/Security Pacific proposal in Neapproximately $2.4 billion in several Arizona banking vada is analyzed on the basis of the market presence of Valley Capital. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

364 Federal Reserve Bulletin • May 1992 deposits. Security Pacific owns the 579th largest in- depository institutions in Idaho, holding $160.0 million sured depository institution in Texas, holding $42.2 in deposits, representing approximately 2.1 percent of million in deposits, representing less than one percent state deposits. Security Pacific owns the sixth largest of state deposits. Upon consummation, BankAmerica insured depository institution in Idaho, holding $240.3 would remain the 30th largest insured depository in- million in deposits, representing approximately 3.1 stitution in the state and would hold deposits of $869.5 percent of state deposits. Upon consummation, million, representing less than one percent of state BankAmerica would own the fifth largest insured deposits. depository institution in the state and would hold 7. Idaho deposits of $300.3 million, representing approximately BankAmerica owns the ninth largest of 27 insured 3.9 percent of state deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 365 Appendix C SUMMARY MARKET SHARE TABLES SUMMARY MARKET SHARE TABLE STATE: CALIFORNIA PRE-DrVESTTTURE AMOUNT HHI HHI HHI DIVEST. POST- COMPETITORS MARKET BEFORE AFTER CHANGE ($ IN MIL) DIVEST. CHANGE REMAINING ATASCADERO 1295 1892 597 18.7 1638 343 12 AUBURN 1218 1342 124 0 11 RAKERSF1ELD 1556 2091 535 130.1 1733 177 16 BARSTOW 2254 3392 1139 354 2254 0 5 BIG BEAR LAKE 2144 3309 1165 244 2144 0 4 BISHOP 2972 5291 2319 413 2972 0 4 BLYTHE 2787 4013 1226 413 2787 0 5 CHICO 1179 1711 531 0 14 COAUNGA 3564 6272 2708 312 3564 0 3 COLUSA 2252 3035 783 23.7 2252 0 5 DAVIS 1174 1490 315 0 13 DELANO 2759 4030 1271 58J 2759 0 3 ELCENTRO 1935 3187 1252 14££ 1935 0 5 EUREKA 1687 2009 322 463 1687 0 10 FAIRFIELD 1271 1877 605 15.7 1754 483 15 FRESNO 1142 1747 605 86A 1618 476 26 GRASS VALLEY 1286 1777 492 0 14 HANFORD 1441 2182 741.0 81.0 1460 20 11 HEMET 728 971 242 0 19 JACKSON 1475 1672 197.1 0 9 LAKE PORT 1515 1871 355 25-2 1515 0 11 LANCASTER 1077 1526 448 0 10 LODI 1464 1710 245 0 13 LOMPOC 1936 2676 740 43.8 1936 0 6 LOS ANGELES 565 942 377 0 266 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

366 Federal Reserve Bulletin • May 1992 Appendix C: Summary Market Share Table, California—Continued MERCED 1323 1686 363 0 12 MODESTO 955 1072 118 0 22 MONTEREY 1285 1464 179 0 15 NAPA 1260 1571 311 0 15 OCEANSIDE 1135 1553 418 0 20 OXNARD 1048 1586 539 0 31 PALM SPRINGS- 957 1478 521 0 27 PALM DESERT PERRIS 1057 1551 494 0 20 PLACERVILLE 1381 2045 665 57-2 1459 78 10 RED BLUFF 1775 2981 1207 9L2 1775 0 7 REDDING 1197 1970 773 137.5 1312 115 12 RIDGECREST 2602 4420 1818 32JS 2602 0 5 RIVERSIDE 1100 1903 803 10L5 1776 676 47 SACRAMENTO 1040 1361 322 0 46 SALINAS 1154 1293 140 0 15 SAN DIEGO 1054 1232 178 0 67 SAN FRANCISCO 1132 1351 219 0 149 SAN LUIS OBISPO 1434 1914 480 542 1691 257 15 SANTA BARBARA 1203 1556 353 0 21 SANTA CRUZ 1260 1320 60 0 16 SANTA MARIA 1096 1598 502 0 14 SANTA ROSA 767 973 206 0 29 SANTA YNEZ 1850 2534 684 60.4 1850 0 5 SONORA 1523 2294 771 44.5 1781 258 9 STOCKTON 1048 1149 101 0 23 TURLOCK 1273 1456 182 0 11 TWENTY-NINE PALMS 1552 2322 770 4&4 1573 21 7 VICTORVILLE MARKET 1413 2439 1026 108J 1638 224 14 VISALIA/POFTERVILLE 1339 2299 960 181.8 1620 281 17 WATSONVILLE 1517 1649 131 0 10 YREKA 1862 2860 998 59.6 1862 0 6 YUBA CITY 1426 1764 338 0 11 APPROXIMATE TOTAL DIVESTITURE IN CALIFORNIA; $1,931 million Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 367 Appendix C—Continued SUMMARY MARKET SHARE TABLE STATE: ARIZONA PRE-DIVESTI'lURE AMOUNT HHI HHI HHI DIVEST. POST- COMPETITORS MARKET BEFORE AFTER CHANGE (SIN MIL) DIVEST. CHANGE REMAINING BULLHEAD CITY 1720 2711 991 $ 4L5 2037 317 8 CASA GRANDE 2490 2680 190 2AS 2481 -9 5 DOUGLAS 2744 3524 780 25.7 2745 0 3 FLAGSTAFF 2243 3215 972 79.8 2396 153 5 GREEN VALLEY 2187 3858 1672 100.1 2237 50 6 LAKE HAVASU 2718 3787 1069 443 2914 196 5 PHOENIX 1715 2411 696 L575J 1973 258 37 PRESCOTT 2271 2953 682 93.1 2339 68 6 SIERRA VISTA 2307 3095 787 50.1 2307 0 4 TUCSON 1597 2224 628 32L2 1845 248 11 YUMA 1789 2110 320 29£ 1925 136 7 APPROXIMATE TOTAL DIVESTITURE IN ARIZONA: $2^864 million SUMMARY MARKET SHARE TABLE STATE: NEVADA PRE-DIVESTTTURE AMOUNT HHI HHI HHI DIVEST. POST- COMPETITORS MARKET BEFORE AFTER CHANGE (S IN MIL) DIVEST. CHANGE REMAINING CARSON CITY 2198 2923 725 $ 6&9 2333 135 10 ELKO 2772 4240 1468 422 2956 185 5 HUMBOLDT 3102 3991 889 20.6 3265 163 4 INCLINE VILLAGE 3654 4350 697 10.7 3654 0 4 LAS VEGAS 1730 2303 573 43 S3 1905 175 16 RENO 2311 3068 757 205.1 2510 199 10 SOUTHERN LAKE 1841 2560 719 26.8 2006 166 7 TAHOE WHITE PINE COUNTY 3991 4924 933 6A 3991 0 4 APPROXIMATE TOTAL DIVESTITURE IN NEVADA: $829 million Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

368 Federal Reserve Bulletin • May 1992 Appendix C—Continued SUMMARY MARKET SHARE TABLE STATE: WASHINGTON PRE-DIVESnTURE AMOUNT HHI HHI HHI DIVEST. POST- COMPETITORS MARKET BEFORE AFTER CHANCE ($ IN MIL) DIVEST. CHANGE REMAINING ABERDEEN 1314 1936 622 $ 93.2 1314 0 9 BELLINGHAM 1597 1900 303 77.2 1650 53 11 BREMERTON 1289 2077 788 82.6 1497 208 15 CENTRALIA 1(60 1950 290 60.1 1660 0 8 CHELAN 1677 2374 697 21.6 1677 0 7 DAYTON 3310 6201 2891 24.0 3310 0 3 ELLENSBURG 1766 2410 644 AS2 1766 0 6 GRAND COULEE 3585 5194 1609 51.4 3585 0 4 LONGVIEW 1554 2270 716 69.0 1572 17 9 MOSES LAKE 1749 2206 457 26.9 1749 0 6 MT. VERNON 1464 2008 603 69.7 1571 166 10 OLYMPIA 1176 1627 451 106.1 1096 •81 14 OTHELLO 3649 3973 325 6.7 3649 0 4 PASCO-KENNEWICK 1663 2654 992 93 J 1815 153 11 PORT ANGELES 2036 2263 227 19.4 2036 0 7 RITZVILLE 2607 3471 864 27.5 2607 0 4 SEATTLE 1340 2288 948 1,874.3 1766 426 58 SPOKANE 1429 1635 207 13.1 1617 188 15 STEVENS COUNTY 3129 5763 2634 54.8 3129 0 3 SUNNYSIDE 1954 2459 505 16.5 1996 41 8 TOPPENISH-WAPATO 3492 6407 2915 29.8 3492 0 2 WALLA WALLA 2232 2628 297 34 A 2370 39 8 WENATCHEE 1568 2041 473 77.0 1568 0 10 YAKIMA 1273 1805 532 112.9 1287 14 9 APPROXIMATE TOTAL DIVESTITURE IN WASHINGTON: $3,250 million Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 369 Appendix C—Continued SUMMARY MARKET SHARE TABLE STATE: IDAHO PRE-DIVESTTTURE AMOUNT HHI HHI HHI DIVEST. POST- COMPETITORS MARKET BEFORE AFTER CHANGE ($ IN MIL) DIVEST CHANGE REMAINING LEWISTON 1353 1418 64 0 11 SUMMARY MARKET SHARE TABLE STATE: OREGON PRE-DIVESTTTURE AMOUNT HHI HHI HHI DIVEST. POST- COMPETITORS MARKET BEFORE AFTER CHANGE <$ IN MIL) DIVEST CHANGE REMAINING ASTORIA 1654 1986 333 44.8 1654 0 7 BEND 1801 1857 56 0 10 CORVALUS 1586 1638 52 0 8 EUGENE 1808 1829 21 0 14 GRANTS PASS 1267 1533 267 0 11 LINCOLN COUNTY 1577 1769 192 0 7 McMINNVILLE 1918 2016 97 0 7 MEDFORD 1735 1829 94 0 13 PENDLETON 2293 2432 138 6A 2341 48 6 PORTLAND 1959 2100 141 0 26 SALEM 1612 1641 29 0 11 THE DALLES 1849 2215 366 80.9 1876 26 9 APPROXIMATE TOTAL DIVESTITURE IN OREGON: $65 million SUMMARY MARKET SHARE TABLE STATE: TEXAS PRE-DIVESTITURE AMOUNT HHI mil HHI DIVEST. POST. COMPETITORS MARKET BEFORE AFTER CHANGE (S IN MIL) DIVEST CHANGE REMAINING DALLAS 988 988 0 0 157 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

370 Federal Reserve Bulletin • May 1992 Boatmen's Bancshares, Inc. Effective January 1, 1991, the Iowa regional inter- St. Louis, Missouri state banking statute expressly authorizes regional bank holding companies to acquire established Iowa Order Approving Acquisition of a Bank Holding banks or bank holding companies under certain con- Company ditions and with the approval of the Iowa Superintendent of Banking.3 Boatmen's is located in a state Boatmen's Bancshares, Inc., St. Louis, Missouri within the designated midwestern region.4 The pro- ("Boatmen's"), a bank holding company within the posal appears to be consistent with the other requiremeaning of the Bank Holding Company Act ("BHC ments of Iowa law, subject to receiving approval by Act"), has applied under section 3(a)(3) of the BHC the Iowa Superintendent of Banking. On the basis of Act (12 U.S.C. § 1842(a)(3)) to acquire First Interstate all the facts of record, the Board believes that approval of Iowa, Inc., Des Moines, Iowa ("First Interstate"), of the proposal is not barred by the Douglas Amendand thereby indirectly acquire its subsidiary banks.1 ment.5 However, approval of this proposal is condi- Boatmen's also has applied under section 4(c)(8) of the tioned upon Boatmen's receiving all required state BHC Act to acquire First Interstate Information Sys- regulatory approvals. tems of Iowa, Inc., Des Moines, Iowa ("FIIS"), and Boatmen's, with total consolidated assets of $17.2 thereby engage in providing data processing services billion,6 controls 42 banking subsidiaries in Missouri, on a nationwide basis. Boatmen's proposes to conduct Illinois, Tennessee, Oklahoma and Delaware. Boatthis activity in accordance with the Board's Regula- men's is the largest commercial banking organization tion Y (12 C.F.R. 225.25(b)(7)). in Missouri, controlling deposits of $9.5 billion, repre- Notice of the applications, affording interested per- senting approximately 19.2 percent of total deposits in sons an opportunity to submit comments, has been commercial banks in the state. First Interstate is the published (56 Federal Register 64,255 (1991)). The fourth largest banking organization in Iowa, controltime for filing comments has expired, and the Board ling deposits of $921.2 million, representing approxihas considered the applications and all the comments mately 3.3 percent of total deposits in commercial received in light of the factors set forth in sections 3(c) banks in the state. The banking subsidiaries of Boatand 4(c)(8) of the BHC Act. men's and First Interstate are not located in any of the Section 3(d) of the BHC Act, the Douglas Amend- same banking markets in Missouri or Iowa. Based on ment, prohibits the Board from approving an applica- all the facts of record, the Board concludes that tion by a bank holding company to acquire control of consummation of this proposal would not result in any any bank located outside of the bank holding com- significantly adverse effect on the concentration of pany's home state, unless such acquisition is "specif- resources or on competition in any relevant banking ically authorized by the statute laws of the State in market. which [the] bank is located, by language to that effect The financial and managerial resources and future and not merely by implication." For purposes of the prospects of Boatmen's, First Interstate, and their Douglas Amendment, the home state of Boatmen's is Missouri and the home state of First Interstate is Iowa.2 3. Iowa Stat. Ann. §§ 524.1901 et seq. (West Supp. 1991). 4. "Midwestern region" means the states of Illinois, Iowa, Minnesota, Missouri, Nebraska, South Dakota and Wisconsin. Iowa Stat. Ann. § 524.1901(8) (West Supp. 1991). All of Boatmen's existing bank subsidiaries satisfy applicable capital requirements and the acquisition would not exceed the 10 percent or the 35 percent aggregate limita- 1. First Interstate's subsidiary banks are: First Interstate Bank of tions placed on control of deposits in Iowa. Iowa Stat. Ann. Des Moines, N.A., Des Moines, Iowa; First Interstate Bank of Fort §§ 524.1802 and 524.1906(2) (West Supp. 1991). In addition, Boat- Dodge, Fort Dodge, Iowa; First Interstate Bank of Greenfield, Green- men's and First Interstate have been in existence for at least 3 years field, Iowa; First Interstate Bank of Kalona, Kalona, Iowa; First and all of First Interstate's banking subsidiaries have been in existence Interstate Bank of Marengo, Marengo, Iowa; First Interstate Bank of for at least 5 years. Iowa Stat. Ann. § 524.1906(3) (West Supp. 1991). Iowa-North, Mason City, Iowa; First Interstate Bank of Iowa-North- Under Iowa law, a bank holding company, such as Boatmen's Iowa, west, N.A., Spencer, Iowa; First Interstate Bank of Sigourney, that was organized solely for the purpose of facilitating the acquisition Sigourney, Iowa; First Interstate Bank of Sioux City, Sioux City, of another bank or bank holding company that had been in existence Iowa; and First Interstate Bank of Urbandale, Urbandale, Iowa. and continuously operating for the required period before the acqui- Boatmen's proposes to accomplish this acquisition by forming a sition, is deemed to have been in existence and operated as a bank wholly owned subsidiary, Boatmen's Bancshares of Iowa, Inc., St. holding company for that required period. Iowa Stat. Ann. Louis, Missouri ("Boatmen's Iowa"), which will merge with First § 524.1906(4)(b) (West Supp. 1991). The application by Boatmen's to Interstate. In connection with this application, Boatmen's Iowa has acquire First Interstate is pending before the Iowa Superintendent of applied under section 3(a)(1) of the BHC Act to become a bank holding Banking. company. 5. By agreement dated November 15, 1990, the banking depart- 2. A bank holding company's home state is that state in which the ments of Missouri and Iowa determined that the banking laws of each operations of the bank holding company's banking subsidiaries were state permit the interstate acquisition of banks between the two states. principally conducted on July 1, 1966, or the date on which the 6. Asset data are as of September 30, 1991. State deposit data are as company became a bank holding company, whichever is later. of June 30, 1990. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 371 subsidiary banks, and supervisory factors are consis- be consummated before the thirtieth calendar day tent with approval. Considerations relating to the following the effective date of this Order, and the convenience and needs of the communities to be acquisition of First Interstate and FIIS shall not be served also are consistent with approval of this appli- consummated later than three months after the effeccation. tive date of this Order, unless such period is extended Boatmen's also has applied, pursuant to section for good cause by the Board or by the Federal Reserve 4(c)(8) of the BHC Act, to acquire FIIS, and thereby Bank of St. Louis, acting pursuant to delegated auengage in providing data processing services. As noted thority. above, this activity is permissible for bank holding By order of the Board of Governors, effective companies under the Board's Regulation Y, and Boat- March 2, 1992. men's proposes to conduct this activity in accordance with the Board's regulations. Boatmen's also operates Voting for this action: Chairman Greenspan and Governors subsidiaries that provide data processing services. The Mullins, Angell, LaWare, Lindsey, and Phillips. Absent and not voting: Governor Kelley. market shares of these subsidiaries are small, and there are numerous competitors for these services. In JENNIFER J. JOHNSON light of the facts of record, the Board concludes that Associate Secretary of the Board the acquisition by Boatmen's of FIIS would not have any significantly adverse effect on competition in any First of America Bank Corporation relevant market. Furthermore, there is no evidence in Kalamazoo, Michigan the record to indicate that consummation of this proposal is likely to result in any other significantly Order Approving Merger of Bank Holding adverse effects, such as undue concentration of re- Companies sources, decreased or unfair competition, conflicts of interests, or unsound banking practices that are not First of America Bank Corporation, Kalamazoo, outweighed by the public benefits in this case. Accord- Michigan ("FOA"), a bank holding company within ingly, the Board has determined that the balance of the meaning of the Bank Holding Company Act public interest factors it must consider under section ("BHC Act"), has applied under section 3(a)(5) of the 4(c)(8) of the BHC Act is favorable and consistent with BHC Act (12 U.S.C. § 1842(a)(5)) to merge with approval of the application by Boatmen's to acquire Security Bancorp, Inc., Southgate, Michigan ("Secu- FIIS. rity"), and thereby indirectly acquire its subsidiary Based on the foregoing and other facts of record and banks.1 FOA also has applied under section 4(c)(8) of subject to the commitments made by Boatmen's and the BHC Act to acquire SecureData Corp., Southgate, all its subsidiaries in this case, the Board has deter- Michigan, and thereby engage in providing data promined that the applications should be, and hereby are, cessing services on a nationwide basis, and United approved. This approval is specifically conditioned Bankers Life Insurance Company, Kalamazoo, Michupon Boatmen's obtaining all required state approvals igan, and thereby engage in underwriting credit-related and on compliance by Boatmen's and its subsidiaries insurance. FOA proposes to conduct these activities in with all of the commitments made in connection with accordance with the Board's Regulation Y (12 C.F.R. these applications and with the conditions referenced 225.25(b)(7) and (8)(i)). in this order. The determinations as to the nonbanking Notice of the applications, affording interested persubsidiaries to be acquired also are subject to all of the sons an opportunity to submit comments, has been conditions contained in the Board's Regulation Y, published (56 Federal Register 59,940 (1991)). The including those in sections 225.4(d) and 225.23(b)(3) time for filing comments has expired, and the Board (12 C.F.R. 225.4(d) and 225.23(b)(3)), and to the has considered the applications and all the comments Board's authority to require such modification or termination of the activities of a holding company or any of its subsidiaries as the Board finds necessary to assure compliance with, or prevent evasions of, the 1. Security's subsidiary banks are: Security Bank of Commerce, provisions and purposes of the BHC Act and the Hamtramck, Michigan; Security Bank of Monroe, Monroe, Michigan; Board's regulations and orders issued thereunder. The Security Bank Northeast, Richmond, Michigan; Security Bank and commitments and conditions relied on in reaching this Trust Company, Southgate, Michigan; and Security Bank St. Clair Shores, St. Clair Shores, Michigan. In connection with this transacdecision are conditions imposed in writing by the tion, Security has granted to FOA warrants to purchase up to 19.9 Board in connection with its findings and decision and percent of Security's shares, and FOA has applied to exercise the may be enforced in proceedings under applicable law. warrants if any of several preconditions occur. The warrants will become moot upon consummation of the FOA application to acquire The acquisition of First Interstate's banks shall not Security. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

372 Federal Reserve Bulletin • May 1992 received in light of the factors set forth in sections 3(c) After giving effect to the divestiture proposed in the and 4(c)(8) of the BHC Act. Monroe banking market, the Herfindahl-Hirschman Index ("HHI") in this market would increase by Competitive Considerations fewer than 200 points.7 Based on all the facts of record, including FOA's commitment to divest its FOA, with total consolidated assets of $16.8 billion,2 bank in the Monroe banking market, the Board controls 25 banking subsidiaries in Michigan, Illinois concludes that consummation of this proposal would and Indiana. FOA is the fourth largest commercial not result in any significantly adverse effect on the banking organization in Michigan, controlling depos- concentration of banking resources or competition in its of $7.4 billion, representing approximately 10 the Monroe banking market. percent of total deposits in commercial banks in that In the remaining banking markets of Ann Arbor, state. Security owns five banks located in Michigan Detroit, Flint, and Toledo, consummation of the proand is the seventh largest banking organization in the posal would result in an increase of fewer than 100 state, controlling deposits of $2.5 billion, represent- points in the HHI of each of these banking markets.8 ing approximately 3.4 percent of total deposits in Based on post-consummation concentration levels, commercial banks in the state. Upon consummation, market share and the number of competitors remaining FOA would become the third largest commercial in these markets and other facts of record, the Board banking organization in Michigan, controlling depos- has concluded that consummation of the proposal its of $9.9 billion, representing approximately 13.4 would not result in a significantly adverse effect on percent of total deposits in commercial banks in the competition in any of these markets. state. Accordingly, based on all the facts of record in this FOA and Security compete directly in the follow- case, and subject to the divestiture commitments made ing banking markets: Monroe, Ann Arbor, Detroit, by FOA, the Board concludes that consummation of and Flint in Michigan, and Toledo, Ohio.3 In the this proposal would not result in any significantly Monroe banking market,4 FOA is the fourth largest adverse effect on competition in any relevant banking commercial banking or thrift organization (together, market. "depository institution"), controlling deposits of $69.5 million, representing approximately 8.1 per- Convenience and Needs Considerations cent of total deposits in depository institutions in the market ("market deposits").5 Security is the second In analyzing the effect of this merger on the convelargest depository institution in the market, control- nience and needs of the communities to be served by ling deposits of $237 million, representing approxi- FOA and Security, the Board has taken into account mately 27.5 percent of market deposits. In order to mitigate the potential anticompetitive effects of the proposed acquisition in the Monroe banking market, FOA has committed to divest its bank in the Monroe the bank promptly. See, e.g., Society Corporation, 78 Federal Reserve Bulletin 302 (1992); First Hawaiian, Inc., 77 Federal Reserve banking market to an acquiror that does not currently Bulletin 52 (1991); First Union Corporation, 76 Federal Reserve have a significant market presence and that would be Bulletin 83 (1990). a significant competitor following the acquisition.6 7. Under the revised Department of Justice Merger Guidelines, 49 Federal Register 26,823 (1984), a market in which the post-merger HHI is above 1800 is considered to be highly concentrated. In such markets, the Justice Department is likely to challenge a merger that increases the HHI by more than 50 points. The Department of Justice 2. Asset data are as of December 31, 1991. Deposit data are as of has informed the Board that, as a general matter, a bank merger or June 30, 1990. acquisition will not be challenged, in the absence of other factors 3. The Toledo banking market encompasses areas in both Michigan indicating anticompetitive effects, unless the post-merger HHI is at and Ohio. least 1800 and the merger increases the HHI by 200 points. The Justice 4. The Monroe banking market is approximated by Monroe County, Department has stated that the higher-than-normal HHI thresholds for Michigan, except for Whiteford, Bedford, Erie, Ash and Berlin screening bank mergers for anticompetitive effects implicitly recogtownships. nize the competitive effect of limited-purpose lenders and other 5. Market deposit data are based on calculations in which the non-depository financial entities. FOA has committed that any change deposits of thrift institutions are included at 50 percent. The Board in the HHI will be fewer than 200 points in this market as a result of previously has indicated that thrift institutions have become, or have the proposed divestiture. the potential to become, major competitors of commercial banks. See 8. FOA would remain the largest depository institution in the Ann Midwest Financial Group, 75 Federal Reserve Bulletin 386 (1989); Arbor banking market, and the HHI would increase by 36 points, to a National City Corporation, 70 Federal Reserve Bulletin 743 (1984). level of 1398. In the Detroit banking market, FOA would remain the 6. FOA has committed to execute an agreement for the sale of the 5th largest depository institution, and the HHI would increase by 60 bank prior to consummation of this proposal. FOA has committed points, to a level of 1471. FOA would remain the 4th largest depository that, if it is unsuccessful in consummating the divestiture of its bank institution in the Flint banking market, and the HHI would increase by within 180 days of consummation of the proposal to acquire Security, 13 points, to a level of 1823. In the Toledo banking market, FOA FOA will transfer all of the shares of its bank in the Monroe banking would become the 16th largest depository institution, and the HHI market to an independent trustee with instructions that the trustee sell would remain at 1477. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 373 the record of performance of the subsidiary banks of A. Examination of CRA Performance FOA and Security under the Community Reinvestment Act (12 U.S.C. § 2901 et seq.) ("CRA"). The Initially, the Board notes that Detroit Bank received a CRA requires the federal financial supervisory agen- "satisfactory" rating for CRA performance from its cies to encourage financial institutions to help meet primary regulator, the Office of the Comptroller of the the credit needs of the local communities in which Currency ("OCC") in its most recent examination for they operate consistent with the safe and sound CRA performance as of September 30, 1990. All of the operation of such institutions. To accomplish this other banks owned by FOA have received either end, the CRA requires the appropriate federal super- "outstanding" or "satisfactory" ratings from their visory authority to "assess an institution's record of primary regulators in their most recent CRA performeeting the credit needs of its entire community, mance examinations.11 The Agency CRA Statement including low- and moderate-income neighborhoods, provides that a CRA examination is an important and consistent with the safe and sound operation of the often controlling factor in the consideration of an institution," and to take that record into account in institution's CRA record and that these reports will be its evaluation of bank holding company applica- given great weight in the applications process.12 tions.9 In this regard, the Board has considered comments B. CRA Policies, Programs, and Lending filed by the Michigan Association of Community Activities Organizations for Reform Now ("Michigan ACORN") alleging that one of FOA's subsidiary Detroit Bank has in place the types of policies and banks, First of America Bank-Southeast Michigan, procedures outlined in the Agency CRA Statement N.A., Detroit, Michigan ("Detroit Bank"), is not that contribute to an effective CRA program. For meeting the credit needs of low- and moderate- example, a CRA Officer has overall responsibility for income and minority communities and does not have administering Detroit Bank's CRA program and for adequate marketing efforts, community group con- reporting to management and Detroit Bank's board of tacts, or participation in government-guaranteed loan directors on the implementation of the program. The programs. Michigan ACORN also maintains on the CRA Officer also chairs a CRA Committee composed basis of its analysis of the 1990 data submitted under of senior management of Detroit Bank, including the the Home Mortgage Disclosure Act ("HMDA") and senior lending officer and the president and chief data available from state banking authorities, that executive officer. The CRA Committee meets monthly Detroit Bank is illegally discriminating in its mort- to review all aspects of Detroit Bank's CRA program, gage lending against individuals in these communi- to implement policies, procedures and programs that ties. In addition, Michigan ACORN contends that the improve CRA compliance, and to coordinate Detroit branch opening and closing policy of Detroit Bank is Bank's CRA activities. The board of directors of inadequate. Detroit Bank has also appointed a Corporate Respon- The Board has carefully reviewed the CRA perfor- sibility Committee which meets bi-monthly to review mance records of FOA and Security, as well as all Detroit Bank's CRA activities, CRA statement, the comments received and FOA's responses to those comments, and all of the other relevant facts, in light of the CRA, the Board's regulations, and the State- 11. Three of Security's subsidiary banks have received "needs to ment of the Federal Financial Supervisory Agencies improve" ratings for CRA performance in their most recent examina- Regarding the Community Reinvestment Act ("Agen- tions by the Federal Reserve Bank of Chicago. FOA has committed to cy CRA Statement").10 take immediate action to strengthen the CRA performance of each of these banks. FOA will implement a CRA plan at these banks that will include a comprehensive community outreach program and a CRA training program for employees. The banks will also appoint a senior manager responsible for overseeing the banks' CRA-related activities. That manager will report progress towards meeting CRA objectives 9. 12 U.S.C. § 2903. directly to FOA's Corporate CRA Officer. These banks will have 10. 54 Federal Register 13,742 (1989). The Agency CRA Statement access to FOA's corporate development program and the resources of provides guidance regarding the types of policies and procedures that its Community Development Corporation subsidiary which focuses on the supervisory agencies believe financial institutions should have in community reinvestment lending strategies. FOA will also introduce place in order to fulfill their responsibilities under the CRA on an its loan products to address specific areas of weakness in the lending ongoing basis and the procedures that the supervisory agencies will records of these banks. FOA expects to put this CRA program in place use during the application process to review an institution's CRA at Security's banks within one month of consummation of the acquisition. In light of the satisfactory CRA performance record by FOA in compliance and performance. The Agency CRA Statement also indithe same communities currently served by these Security bank cates that decisions by agencies to allow financial institutions to subsidiaries, the Board believes that FOA's proposal will satisfactoexpand will be made pursuant to an analysis of the institution's overall rily address the deficiencies identified at these banks. CRA performance and will be based on the actual record of performance of the institution. 12. 54 Federal Register at 13,745. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

374 Federal Reserve Bulletin • May 1992 geographic distribution of credit, and internal and Detroit Bank also helps to meet the credit needs of regulatory examination reports on CRA. low- and moderate-income customers through special Detroit Bank has established a Community Advis- products like "Select Purchase," a credit product ory Committee in Detroit comprised of executive introduced in late 1990. "Select Purchase" is a credit management and a group of representatives of com- card with no fee, low interest rate, low monthly munity organizations. The Community Advisory Com- payments and check writing features. Detroit Bank mittee meets regularly to discuss banking and commu- has also established a deposit program called Home nity issues of mutual concern to Detroit Bank and the Buyers Savings Plan to help people save for the community. Detroit Bank also maintains contact with downpayment on a home. This program has a tradiits communities through an Urban Communities Lend- tional coupon book feature that permits customers to ing Manager who provides assistance for Detroit make monthly "payments" into a money market sav- Bank's community development efforts and Detroit ings account and save enough for a downpayment Bank provides free office space on premises to the within 1 or 2 years depending on the payments se- Local Initiatives Support Corporation. lected. In addition, the customer will be pre-qualified Detroit Bank markets several credit products such for a mortgage with no commitment fee and reduced as residential mortgages and home improvement loans closing costs. Detroit Bank also participates in governthrough traditional media, including newspapers, tele- ment-guaranteed lending programs, and at the end of vision and radios. Marketing efforts are also targeted the third quarter 1991, Detroit Bank had outstanding to consumers in low- and moderate-income areas over $3 million in all FHA mortgage loans,14 over $13 through advertisements in neighborhood and minority million in FHA-Home Improvement loans, over publications and brochures distributed to area $780,000 in VA loans, and $1.2 million in SBA loans. churches and community groups. Detroit Bank's call Detroit Bank also engages in community developprogram included over 780 realtors in the Detroit area ment activities in conjunction with First of America in 1991. Community Development Corporation ("CDC"), Detroit Bank offers products that target the special which was established in May 1991.15 All projects of credit needs of individuals in low- and moderate- the CDC are directed to individuals and small busiincome communities. For example, Detroit Bank's nesses in low- and moderate-income areas. Detroit Initiative Mortgage offers conventional 15 and 30 year Bank is also a participant in the Detroit Neighborhood fixed rate mortgages with the following special fea- Investment Corporation ("DNIC") and has made a $4 tures: a 10 percent downpayment, higher than normal million commitment to the DNIC for home improvequalifying debt to income ratios, reduced closing ment loans and residential mortgages for Detroit's costs, no points on mortgages up to $35,000, flexible low-income residents. In addition, Detroit Bank parcredit and employment standards, and possible non- ticipates in the Detroit Small Business Development financial equity as part of the downpayment. Detroit System, a multi-bank, micro-business loan program.16 Bank has determined to revise this program in Detroit Detroit Bank has also committed with four other to make it more accessible to low- and moderateincome borrowers by reducing the downpayment to 5 percent and charging no points on mortgages up to loans that Detroit Bank made in the City of Detroit, Detroit Bank $50,000. A total of 126 mortgages for $3,520,000 have increased during this time period the number of loans it made in the been made in Detroit under this program since its City of Detroit under the Initiative Mortgage program. In addition, inception in 1989. Detroit Bank also has a Home while the number of loans that Detroit Bank made to low- and moderate-income areas and minority census tracts in Detroit de- Improvement Mortgage loan to help buyers with un- creased from 1989 to 1990, the number of loans made in 1990 to these anticipated emergency repairs after closing.13 areas still exceeded the number of loans made in 1988. 14. Detroit Bank became a direct endorser for FHA loans in August 1991, thereby expediting its ability to process FHA loans. 15. The CDC is capitalized with $3 million and the board of directors 13. Michigan ACORN alleges that Detroit Bank is decreasing its of the CDC has approved projects ranging in size from $30,000 to mortgage lending in the City of Detroit to the detriment of low- and $500,000, including projects in Detroit. moderate-income borrowers. Mortgage data show that Detroit Bank is 16. The Mayor of Detroit has written a letter supporting FOA's not selectively reducing its lending in the City of Detroit but rather has proposed acquisition of Security and generally praising FOA's and experienced an overall decline in this type of lending throughout all Detroit Bank's activities in Detroit. In commenting in favor of the types of communities. For example, within the Detroit MSA, which proposal, the Mayor noted several specific activities by Detroit Bank, includes high- and middle-income neighborhoods, the number of including: (1) minority church loans totaling $7.5 million in the last mortgage loans Detroit Bank made decreased from 581 in 1989 to 396 three years; and (2) lines of credit and financial support for minority in 1990, a reduction of 32 percent. For the same time period, the contractor projects and projects to benefit low- and moderate-income number of mortgage loans Detroit Bank made within the City of individuals, including the Homearama subdivision (the first new Detroit declined by 29 percent, with the number of loans to low- and subdivision in Detroit in over 40 years), the # 1 - Tovar Apartments moderate-income areas declining by 21 percent and the number of (100 rental units for low- and moderate-income families), and the loans to middle- and high-income areas declining by 32 percent. Coronado Apartments (an apartment building for low-income individ- Despite this decrease from 1989 to 1990 in the number of mortgage uals in Cass Corridor). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 375 Detroit banks to provide $3 million for capital loans to tions for residential mortgage loans. Detroit Bank's graduates of the Detroit Self Employment Project. mortgage department manager and the community executive review every rejected Detroit application to C. Home Mortgage Disclosure Act Data attempt to find alternative ways to approve the loan. A loan officer contacts the applicant if this process is The Board has reviewed the data cited by Michigan unsuccessful to discuss the loan request, to explain the ACORN, including the 1990 HMDA data reported by reasons the application was denied, and to counsel the Detroit Bank. Recent amendments to the HMDA for applicant and offer possible solutions to resolve the the first time require banking institutions to collect problems. Detroit Bank also participates in the Detroit certain information regarding applicants for bank Mortgage Plan, a review process for Detroit residents mortgage loans and to report the information regarding who have been denied a mortgage or home improveboth loan approvals and denials to the banking agen- ment loan, in conjunction with New Detroit, a comcies and the public. The information includes data on munity group specializing in mortgage lending. This the race, gender and income of individual applicants, process has resulted in the provision of loans for over in addition to the location of the property securing the 35 percent of the loan denial decisions reviewed. potential loan and the disposition of the application. Detroit Bank also provides regular employee training, Detroit Bank's data show rates for housing loan including on the Equal Credit Opportunity Act and the approvals and denials that vary for different groups Fair Housing Act. when compared by income levels on race or national origin. As a general matter, Detroit Bank's housing- D. Branch Closure Policy related loan denial rates were greater for minority loan applicants as compared to non-minority applicants in Under FOA's branch closure policy, Detroit Bank is its service community. On the basis of these data, required to assess and consider the impact of branch Michigan ACORN has alleged illegal discriminatory closure on the communities served, including low- and lending practices by Detroit Bank. moderate-income neighborhoods.18 The policy also All banks have an obligation to ensure that their states that input from neighborhood leaders will be lending practices are based on criteria that assure safe sought during the decision-making process and that an and sound lending and equal access to credit for analysis will be conducted to determine the ability to creditworthy applicants regardless of gender, race or provide continuity of service through other offices and national origin. The Board is concerned when the the presence of other financial institutions. The policy lending record of an institution indicates disparities in further states that FOA will consider alternatives to lending to minority applicants. The Board also recog- closing facilities, such as adjustments to hours and nizes that HMDA data provide only a limited measure automation. FOA's policy requires FOA to provide of any given institution's lending in the communities advance notice of the possible branch closing to the served, and that HMDA data have limitations that affected community, as well as the rationale for the provide an inadequate basis, absent other information, branch closing. The policy also requires FOA to take for determining whether an institution has engaged in actions to minimize the impact on the affected area by illegal discrimination on the basis of gender, race or ensuring that applications for credit remain accessible national origin. and that availability of credit products is publicized. The most recent examination for CRA compliance Security has no branches in Detroit and FOA has conducted by the OCC found no evidence of illegal stated that no branches in Detroit will be closed as a discrimination or other illegal credit practices in De- result of this acquisition. troit Bank. Detroit Bank also has in place measures designed to improve its lending to minorities and low- E. Conclusions Regarding Convenience and and moderate-income neighborhoods.17 For example, Needs Factors Detroit Bank regularly tracks declined loan applica- On the basis of all the facts of record, including comments received and relevant examination reports, 17. According to the 1990 HMDA data, Detroit Bank's percentage the Board concludes that convenience and needs conof lending in low- and moderate-income and minority areas in the City of Detroit exceeded the percentage of aggregate loans by reporting siderations, including the CRA performance records of lenders in these areas. More than 31.1 percent of Detroit Bank's lending within the City of Detroit went to low- and moderate-areas compared to 21.2 percent for reporting lenders overall in Detroit. In addition, Detroit Bank made 24.6 percent of its loans to minority areas compared to 19 percent for reporting lenders overall in Detroit. Over 18. The OCC has reviewed this policy for compliance with the CRA 57.4 percent of all of Detroit Bank's loans in Detroit were made in and determined it to be satisfactory in Detroit Bank's most recent minority or integrated areas. examination. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

376 Federal Reserve Bulletin • May 1992 FOA and Security, are consistent with approval of FOA proposes to conduct these activities in accorthese applications.'9 dance with the Board's regulations and decisions The Board notes that Detroit Bank is taking steps to governing these activities. FOA also operates subsidensure that no individuals are unfairly denied access to iaries that provide data processing services and creditcredit because of their race or national origin. The related insurance. The market shares of these subsid- Board expects Detroit Bank to continue these mea- iaries are small, and there are numerous competitors sures to improve its record of lending in low- and for these services. In light of the facts of record, the moderate-income areas. The Board notes that Detroit Board concludes that the acquisition by FOA of Se- Bank's progress in these efforts will be monitored by cureData Corp. and United Bankers Life Insurance its primary regulator in future CRA performance ex- Company would not have a significantly adverse effect aminations. The Board will also review this perfor- on competition in any relevant market. Furthermore, mance in future applications by FOA to acquire de- there is no evidence in the record to indicate that pository institutions. consummation of this proposal is likely to result in any other significantly adverse effects, such as undue Other Considerations concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking Based on the entire record, the Board also concludes practices that are not outweighed by the public benethat the financial and managerial resources and future fits in this case. Accordingly, the Board has deterprospects of FOA, Security, and their subsidiary mined that the balance of public interest factors it must banks, and supervisory factors are consistent with consider under section 4(c)(8) of the BHC Act is approval. favorable and consistent with approval of the applica- FOA also has applied, pursuant to section 4(c)(8) of tion by FOA to acquire SecureData Corp. and United the BHC Act, to acquire SecureData Corp., and Bankers Life Insurance Company. thereby engage in providing data processing services, Based on the foregoing and other facts of record and and to acquire United Bankers Life Insurance Com- subject to the commitments made by FOA and all its pany, and thereby engage in underwriting credit- subsidiaries in this case, the Board has determined related insurance. The Board has previously deter- that the applications should be, and hereby are, apmined that these activities are closely related to proved. This approval is specifically conditioned on banking for purposes of section 4(c)(8) of the BHC compliance by FOA and its subsidiaries with all of the Act, and permissible for bank holding companies. In commitments made in connection with these applicaorder to approve the acquisitions of SecureData Corp. tions and with the conditions referenced in this order. and United Bankers Life Insurance Company under The determinations as to FOA's nonbanking activities section 4 of the BHC Act, the Board also is required to are also subject to all of the conditions contained in the determine that the performance of the proposed activ- Board's Regulation Y, including those in sections ities by FOA "can reasonably be expected to produce 225.4(d) and 225.23(b)(3) (12 C.F.R. 225.4(d) and benefits to the public . . . that outweigh possible 225.23(b)(3)), and to the Board's authority to require adverse effects, such as undue concentration of re- such modification or termination of the activities of a sources, decreased or unfair competition, conflicts of holding company or any of its subsidiaries as the interests, or unsound banking practices." 12 U.S.C. Board finds necessary to assure compliance with, or § 1843(c)(8). prevent evasions of, the provisions and purposes of the BHC Act and the Board's regulations and orders issued thereunder. The commitments and conditions relied on in reaching this decision are conditions 19. Michigan ACORN has requested that the Board hold a public imposed in writing by the Board in connection with its hearing or meeting to assess further facts surrounding the CRA findings and decision and may be enforced in proceedperformance of Detroit Bank. Under the Board's rules, the Board may, in its discretion, hold a public hearing or meeting on an ings under applicable law. application to clarify factual issues related to the application and to The acquisition of Security's banks shall not be provide an opportunity for testimony, if appropriate. 12 U.S.C. consummated before the thirtieth calendar day follow- §§ 262.3(e) and 262.25(d). The Board has carefully considered this request. In the Board's ing the effective date of this Order, and the acquisition view, interested parties have had ample opportunity to present written of Security's banks and of SecureData Corp. and submissions, and Michigan ACORN has submitted substantial written United Bankers Life Insurance Company shall not be comments that have been considered by the Board. In light of this, the Board has determined that a public meeting or hearing is not necessary consummated later than three months after the effective to clarify the factual record in these applications, or otherwise date of this Order, unless such period is extended for warranted in this case. Accordingly, Michigan ACORN's request for good cause by the Board or by the Federal Reserve a public meeting or hearing on this application is hereby denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 377 Bank of Chicago, acting pursuant to delegated author- comments received in light of the factors set forth in ity. sections 3(c) and 4(c)(8) of the BHC Act. By order of the Board of Governors, effective Mercantile, with total deposits of $5.6 billion, con- March 12, 1992. trols banking subsidiaries in Missouri and Illinois.3 Mercantile is the third largest commercial banking Voting for this action: Chairman Greenspan and Governors organization in Missouri, with 25 subsidiary banks Mullins, Angell, Kelley, LaWare, Lindsey, and Phillips. controlling $5.2 billion in deposits, representing 9.9 percent of total deposits in commercial banking orga- JENNIFER J. JOHNSON nizations in the state. Ameribanc is the ninth largest Associate Secretary of the Board commercial banking organization in Missouri, controlling 11 subsidiary banks with $1 billion in deposits, Mercantile Bancorporation, Inc. representing approximately 1.9 percent of total depos- St. Louis, Missouri its in commercial banking organizations in the state. Upon consummation of this proposal and all proposed Order Approving Acquisition of a Bank Holding divestitures, Mercantile would become the second Company largest commercial banking organization in Missouri, controlling deposits of $6.2 billion, representing 11.8 Mercantile Bancorporation, Inc., St. Louis, Missouri percent of total deposits in commercial banking orga- ("Mercantile"), a bank holding company within the nizations in the state. meaning of the Bank Holding Company Act ("BHC Mercantile and Ameribanc compete directly in four Act"), has applied under section 3 of the BHC Act banking markets in Missouri. After considering the (12 U.S.C. § 1842) to acquire Ameribanc, Inc., competition offered by other depository institutions in St. Joseph, Missouri ("Ameribanc"), and thereby the market,4 the number of competitors remaining in acquire Ameribanc's eleven bank subsidiaries.1 Merthe market, the increase in concentration, and the cantile also has applied under section 4(c)(8) of the other facts of record, the Board has concluded that BHC Act to acquire Ameribanc Life Insurance Comconsummation of the proposal would not result in a pany, St. Joseph, Missouri ("Ameribanc Life"), and significantly adverse effect on competition in the thereby engage in the reinsurance of credit life, acci- St. Louis, Kansas City, or Washington banking mardent, and health insurance sold in connection with kets.5 extensions of credit made by Ameribanc's subsidiary Mercantile has proposed a divestiture to mitigate the banks. Mercantile proposes to conduct this activity in anticompetitive effects of the proposed acquisition in accordance with the Board's Regulation Y (12 C.F.R. the Grundy County, Missouri, banking market. In the 225.25(b)(8)(i)).2 Grundy County banking market, Mercantile is the Notice of the applications, affording interested perlargest of four depository institutions, controlling sons an opportunity to submit comments, has been $63.2 million in deposits, representing 39.5 percent of duly published (56 Federal Register 67,322 (1991)). The time for filing comments has expired, and the Board has considered the applications and all the 3. State deposit data are as of June 30, 1991. Market deposit data are as of June 30, 1990. 4. In this context, depository institutions include commercial banks, savings banks, and savings associations. Market share data are based on calculations in which the deposits of thrift institutions are included 1. Ameribanc's subsidiary banks, all in Missouri, are: American at 50 percent. The Board previously has indicated that thrift institu- National Bank of St. Joseph, St. Joseph; American Bank, Kansas tions have become, or have the potential to become, significant City; American Bank of Boone County, Centralia; American Bank of competitors of commercial banks. WM Bancorp, 76 Federal Reserve Franklin County, Union; American Bank of Morgan County, Ver- Bulletin 788 (1990); First Union Corporation, 76 Federal Reserve sailles; American Bank of North Central Missouri, Trenton; American Bulletin 83 (1990); Midwest Financial Group, 75 Federal Reserve Bank of Northwest Missouri, Maryville; American Bank of Platte Bulletin 386 (1989). County, Kansas City; American Bank of St. Louis, St. Louis; 5. Under the revised Department of Justice Merger Guidelines, 69 American Bank of Plattsburg/Edgerton, Plattsburg; and American Federal Register 26,823 (1984), a market in which the post-merger Bank of Rolla, Rolla. Mercantile proposes to accomplish this acqui- Herfindahl-Hirschman Index ("HHI") is above 1800 is considered sition by forming a wholly owned subsidiary, Mercantile Acquisition highly concentrated. In such markets, the Department of Justice is Corporation I, St. Louis, Missouri ("MAC"), which will merge with likely to challenge a merger that increases the HHI by more than 50 Ameribanc. In connection with this application, MAC has applied points. The Department of Justice has informed the Board that, as a under section 3(a)(1) of the BHC to become a bank holding company. general matter, a bank merger or acquisition will not be challenged, in 2. In connection with this transaction, Ameribanc has granted the absence of other factors indicating anticompetitive effects, unless Mercantile an option to purchase up to 19.9 percent of the outstanding the post-merger HHI is at least 1800 and the merger increases the HHI common stock of Ameribanc, and Mercantile has applied to exercise by 200 points. The Justice Department has stated that the higher than the option if any of several preconditions occurs. This option will normal HHI thresholds for screening bank mergers for anticompetibecome moot upon consummation of the Mercantile applications to tive effects implicitly recognize the competitive effect of limitedacquire Ameribanc. purpose lenders and other non-depository financial entities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

378 Federal Reserve Bulletin • May 1992 the total deposits in depository institutions in the more, there is no evidence in the record to indicate market.6 Ameribanc's subsidiary bank, American that consummation of this proposal is likely to result in Bank of North Central Missouri, Trenton, Missouri, any significantly adverse effects, such as undue conis the smallest depository institution in the Grundy centration of resources, decreased or unfair competi- County banking market, controlling $23.8 million in tion, conflicts of interests, or unsound banking pracdeposits, representing 14.9 percent of total deposits tices that are not outweighed by the public benefits in in depository institutions in the market. Mercantile this case. Accordingly, the Board has determined that has committed to divest this bank to a banking the balance of public interest factors it must consider organization not currently operating in the mar- under section 4(c)(8) of the BHC Act is favorable and ket.7 As a result of this divestiture, the number of consistent with approval of the application by Mercandepository institutions in the Grundy County market tile to acquire Ameribanc Life. will not change following consummation of the pro- Based on the foregoing and other facts of record, posal, and the HHI in the market would remain and subject to the commitments made by Mercantile unchanged.8 in this case, the Board has determined that the Based on all the facts of record, and subject to the applications should be, and hereby are, approved. divestiture proposal made by Mercantile, the Board This approval is specifically conditioned upon comhas determined that consummation of this proposal pliance by Mercantile and its subsidiaries with all of would not have a significantly adverse effect on the commitments made in connection with these competition in the Grundy County banking market. applications and with the conditions referenced in The financial and managerial resources, future pros- this order. The determinations as to the nonbanking pects of Mercantile, Ameribanc, and their respective subsidiary to be acquired also are subject to all of the subsidiaries are consistent with approval of this pro- conditions contained in the Board's Regulation Y, posal. Considerations relating to the convenience and including those in sections 225.4(d) and 225.23(b)(3) needs of the communities to be served and the other (12 C.F.R. 225.4(d) and 225.23(b)(3)), and to the factors the Board must consider under section 3 of the Board's authority to require such modification or BHC Act also are consistent with approval. termination of the activities of a holding company or Mercantile also has applied under section 4(c)(8) of any of its subsidiaries as the Board finds necessary to the BHC Act to acquire Ameribanc Life and thereby assure compliance with, or prevent evasions of, the engage in the reinsurance of credit life, accident, and provisions and purposes of the BHC Act and the health insurance sold in connection with extensions of Board's regulations and orders issued thereunder. credit made by Ameribanc's subsidiary banks. As The commitments and conditions relied on in reachnoted above, this activity is permissible for bank ing this decision are conditions imposed in writing by holding companies under the Board's Regulation Y, the Board in connection with its findings and decision and Mercantile will conduct this activity in accordance and may be enforced in proceedings under applicable with the Board's regulation and decisions regarding law. this activity. The acquisition of Ameribanc's banks shall not be Consummation of this proposal would not have any consummated before the thirtieth calendar day followsignificantly adverse effect on competition in the pro- ing the effective date of this Order, and the acquisition vision of this service in any relevant market. Further- of Ameribanc and Ameribanc Life shall not be consummated later than three months after the effective date of this Order, unless such period is extended for 6. The Grundy County, Missouri banking market is approximated good cause by the Board or by the Federal Reserve by all of Grundy County, Missouri. 7. Ameribanc has entered into an agreement to divest American Bank of St. Louis, acting pursuant to delegated au- Bank of North Central Missouri to a bank that does not operate in the thority. market. If Mercantile is unsuccessful in divesting this bank within 180 By order of the Board of Governors, effective days of consummation, Mercantile has committed to transfer the shares of this bank to an independent trustee who would be instructed March 18, 1992. to sell the bank promptly. See, e.g., United New Mexico Financial Corporation, 77 Federal Reserve Bulletin 484,485 (1991); First Union Corporation, 76 Federal Reserve Bulletin 83 (1990). Voting for this action: Chairman Greenspan and Governors 8. In evaluating this proposal, the Board carefully considered Mullins, Angell, Kelley, Lindsey, and Phillips. Absent and comments filed by an individual who urged the Board to condition not voting: Governor LaWare. approval of the applications on the sale of American Bank of North Central Missouri to independent third parties to preserve competition in the Grundy County banking market. The divestiture commitment JENNIFER J. JOHNSON made by Mercantile fully addresses these comments. Associate Secretary of the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 379 ORDERS ISSUED UNDER THE FINANCIAL INSTITUTIONS REFORM, RECOVERY, AND ENFORCEMENT ACT CTIRREA ORDERS") Recent orders have been issued by the 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 First Commercial Corporation, Home Federal Savings First National Bank March 27, 1992 Little Rock, Arkansas Association of Kansas of Russellville, City, Russellville, Kansas City, Missouri Arkansas (Russellville Branch) First United Bancshares, Home Federal Savings Merchants & Planters March 27, 1992 El Dorado, Arkansas Association of Kansas Bank, N.A., City, Camden, Arkansas Kansas City, Missouri (Camden Branch) Meridian Bancorp, Inc., Bell Federal Savings Meridian Bank, March 20, 1992 Reading, Pennsylvania Bank, Reading, Upper Darby, Pennsylvania Pennsylvania Simmons First National Home Federal Savings Simmons First March 27, 1992 Corporation, Association of Kansas National Bank, Pine Bluff, Arkansas City, Pine Bluff, Kansas City, Missouri Arkansas (Pine Bluff-White Hall Branch) 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) ^ Arvest Bank Group, Inc., TRH Bank Group, Inc., March 10, 1992 Bentonville, Arkansas Norman, Oklahoma First Commercial Corporation, Little Rock, Arkansas Meridian Bancorp, Inc., United Bank of Philadelphia, March 20, 1992 Reading, Pennsylvania Philadelphia, Pennsylvania Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

380 Federal Reserve Bulletin • May 1992 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 Associated Banc-Corp, Northeast Wisconsin Chicago March 6, 1992 Green Bay, Wisconsin Financial Services, Inc., Sturgeon Bay, Wisconsin Aurora First National Company, Stromsburg Financial Kansas City February 27, 1992 Aurora, Nebraska Services, Inc., Stromsburg, Nebraska Wood River Financial Services, Inc., Wood River, Nebraska Browning Partners International, CJH Browning Bank, Atlanta March 19, 1992 Inc., Miami, Florida Miami, Florida Citizens Bank Group, Inc., Citizens State Bank of Minneapolis February 24, 1992 Minneapolis, Minnesota St. James, St. James, Minnesota CNB Bancshares, Inc., Indiana Bancshares, Inc., St. Louis March 20, 1992 Evansville, Indiana Greenwood, Indiana CNB of Central Indiana, Inc., Evansville, Indiana Continental Bancorporation, Continental National San Francisco March 23, 1992 Las Vegas, Nevada Bank, Las Vegas, Nevada Crescent Banking Company, Crescent Bank and Trust Atlanta March 23, 1992 Jasper, Georgia Company, Jasper, Georgia CS Bancshares, Inc., Alma Bancshares Kansas City March 18, 1992 Chillicothe, Missouri Corporation, Alma, Missouri Dawson Corporation, Guaranty Corporation, Kansas City March 13, 1992 Lexington, Nebraska Denver, Colorado Dixon Bancshares, Inc., Rolfe State Bank, Chicago March 24, 1992 Rolfe, Iowa Rolfe, Iowa Citizens State Bank, Sheldon, Iowa F & M National Corporation, Farmers and Merchants Richmond March 13, 1992 Winchester, Virginia Bank of Keyser, Keyser, West Virginia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 381 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date First Commonwealth Financial Central Bank, Cleveland February 26, 1992 Corporation, Claysburg, Indiana, Pennsylvania Pennsylvania Forbes First Financial Pioneer Bank and Trust St. Louis February 24, 1992 Corporation, Company, Clayton, Missouri Maple wood, Missouri Heritage Financial Services, Inc., Heritage Bank, Atlanta March 13, 1992 Clarksville, Tennessee Clarksville, Tennessee Hinsbrook Bancshares, Inc., Hinsbrook Bank and Chicago March 12, 1992 Willowbrook, Illinois Trust, Willowbrook, Illinois Mid-Missouri Bancshares, Inc., Tri-County State Bank, St. Louis March 17, 1992 Nevada, Missouri El Dorado Springs, Missouri Minden Bancshares, Inc., Webster Bancshares, Dallas March 13, 1992 Minden, Louisiana Inc., Minden, Louisiana Webster Bank & Trust Company, Minden, Louisiana Minden Exchange Company, Midwest Banco Kansas City March 2, 1992 Minden, Nebraska Corporation, Cozad, Nebraska Minnesota-Wisconsin MidAmerica Minneapolis February 28, 1992 Bancshares, Inc., Bancorporation, Inc., Newport, Minnesota Newport, Minnesota North Platte Corporation, Worland Holding Kansas City March 16, 1992 Torrington, Wyoming Company, Worland, Wyoming Ohio Bancorp, Cortland Bancorp, Cleveland March 12, 1992 Youngstown, Ohio Cortland, Ohio PBA Financial Corporation, Peoples Bancshares, Inc., Atlanta February 26, 1992 Mobile, Alabama Elba, Alabama Peoples First Corporation, Bank of Murray, St. Louis February 24, 1992 Paducah, Kentucky Murray, Kentucky Pine State Bancshares, Inc., Pine State Bank, St. Louis February 25, 1992 Monticello, Arkansas Kingsland, Arkansas Provident Bancorp, Inc., The Provident Bank of Cleveland February 28, 1992 Cincinnati, Ohio Kenton County, Covington, Kentucky The Provident Bank of Boone County, Burlington, Kentucky SouthTrust Corporation, SouthTrust Bank of Atlanta March 16, 1992 Birmingham, Alabama Georgia, N.A., Atlanta, Georgia Summit Bancorp, Inc., Summit Savings Bank, San Francisco February 26, 1992 Bellevue, Washington Bellevue, Washington Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

382 Federal Reserve Bulletin • May 1992 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date Swisher Bankshares, Inc., Swisher Trust and Chicago March 24, 1992 Swisher, Iowa Savings Bank, Swisher, Iowa Triangle Bancorp, Inc., Triangle Bank and Trust Richmond March 11, 1992 Raleigh, North Carolina Company, Raleigh, North Carolina Tulsa Valley Bancshares Valley National Bank, Kansas City March 4, 1992 Corporation, Tulsa, Oklahoma Tulsa, Oklahoma United Central Bancshares, Inc. South Central Bank of St. Louis February 21, 1992 Bowling Green, Kentucky Bowling Green, Inc., Bowling Green, Kentucky Wall Street Holding Company, Bank of Hamilton, Minneapolis March 20, 1992 Hamilton, Hamilton, North Dakota North Dakota Section 4 Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date BB&T Financial Corporation, Peoples Federal Savings Richmond February 28, 1992 Wilson, North Carolina Bank of Thomasville, Thomasville, North Carolina Boatmen's Bancshares, Inc., Superior Federal Bank, St. Louis February 28, 1992 St. Louis, Missouri Federal Savings Bank, Fort Smith, Arkansas First Union Corporation, Hometown Finance, Richmond February 25, 1992 Charlotte, North Carolina Lockhart, Texas The Fuji Bank, Limited, The Financial Center New York March 20, 1992 Tokyo,Japan Bank, N.A., San Francisco, California Second Bancorp, Inc., Aurora Federal Savings Cleveland March 27, 1992 Warren, Ohio Bank, Aurora, Ohio USBANCORP, Inc., Community Bancorp, Philadelphia March 6, 1992 Johnstown, Pennsylvania Inc., Monroeville, Pennsylvania Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 383 Sections 3 and 4 Reserve Effective Applicant(s) Bank(s) Bank Date Associated Banc-Corp, F&M Financial Services Chicago March 6, 1992 Green Bay, Wisconsin Corporation, Menomonee Falls, Wisconsin Independence Community Bank Independence Savings New York February 28, 1992 Corporation, Bank, Brooklyn, New York Brooklyn, New York Long Island City Financial Corporation, Long Island City, New York National City Corporation, Merchants National Cleveland March 16, 1992 Cleveland, Ohio Corporation, NC Acquisition Corp., Indianapolis, Indiana Cleveland, Ohio 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 CivicBank of Commerce, American Bank & Trust San Francisco March 5, 1992 Oakland, California Company, San Jose, California Interim Central Bank, Central Bank, Philadelphia February 26, 1992 Claysburg, Pennsylvania Claysburg, Pennsylvania Peoples State Bank, Eastwood Bank, Minneapolis March 23, 1992 Plainview, Minnesota St. Charles, Minnesota The Provident Bank, Merit Savings Bank, Cleveland March 20, 1992 Cincinnati, Ohio Cincinnati, Ohio Thrift Savings Bank, Cincinnati, Ohio The State Bank and Trust Society Bank and Trust Cleveland March 3, 1992 Company, Company, Defiance, Ohio Toledo, Ohio Tri-State Bank, Boulder Tri-State Bank, Kansas City March 10, 1992 Denver, Colorado Boulder, Colorado Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

384 Federal Reserve Bulletin • May 1992 PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits S.A. and affiliated companies. On August 15, 1991, against the Federal Reserve Banks in which the Board the bankruptcy court issued a temporary restraining of Governors is not named a party. order staying certain judicial and administrative actions, which has been continued by consent. Davis v. Board of Governors, No. 91-6972 (Supreme Fields v. Board of Governors, No. 3:91CV069 (N.D. Court, filed December 4, 1991). Petition for certio- Ohio, filed February 5, 1991). Appeal of denial of rari seeking review of Burke v. Board of Governors, request for information under the Freedom of Infor- 940 F.2d 1360 (10th Cir. 1991), in which the court of mation Act. appeals upheld Board orders assessing civil money penalties and issuing orders of prohibition. Synovus Financial Corp. v. Board of Governors, No. 89-1394 (D.C. Circuit, filed June 21, 1989). Petition In re Subpoena Served on the Board of Governors, for review of Board order permitting relocation of a Nos. 91-5427, 91-5428 (D.C. Cir., filed December bank holding company's national bank subsidiary 27, 1991). Appeal of order of district court, dated from Alabama to Georgia. On December 20, 1991, December 3, 1991, requiring the Board and the the Court of Appeals vacated the Board's order, Office of the Comptroller of the Currency to produce ruling that the Board has no authority over interstate confidential examination material to a private litirelocations of national banks. Synovus's petition for gant. The court of appeals stayed the district court rehearing was denied on March 27, 1992. order on January 7, 1992, and oral argument was held on the case on March 17, 1992. MCorp v. Board of Governors, No. CA3-88-2693 (N.D. Texas, filed October 10, 1988). Application Greenberg v. Board of Governors, No. 91-4200 (2d for injunction to set aside temporary cease and Cir., filed December 4, 1991). Petition for review of desist orders. The case is pending. orders of prohibition issued by the Board on October 28, 1991. Oral argument is scheduled for the week of April 13, 1992. First Interstate BancSystem of Montana, Inc. v. Board of FINAL ENFORCEMENT ORDERS ISSUED BY THE Governors, No. 91-1525 (D.C. Cir., filed November 1, BOARD OF GOVERNORS 1991). Petition for review of Board's order denying on Community Reinvestment Act grounds the petitioner's Farmers and Merchants Bank of Long Beach application under section 3 of the Bank Holding Com- Long Beach, California pany Act to merge with Commerce BancShares of Wyoming, Inc. The case is pending. The Federal Reserve Board announced on March 25, Board of Governors v. Kemal Shoaib, No. CV 91-5152 1992, the issuance of a Cease and Desist Order against (C.D. California, filed September 24, 1991). Action the Farmers and Merchants Bank of Long Beach, to freeze assets of individual pending administrative Long Beach, California. adjudication of civil money penalty assessment by the Board. On October 15, the court issued a preliminary injunction restraining the transfer or disposition of the individual's assets. WRITTEN AGREEMENTS APPROVED BY FEDERAL Board of Governors v. Ghaith R. Pharaon, No. 91- RESERVE BANKS CIV-6250 (S.D. New York, filed September 17, 1991). Action to freeze assets of individual pending Bank of White Sulphur Springs administrative adjudication of civil money penalty White Sulphur Springs, West Virginia assessment by the Board. On September 17, the court issued an order temporarily restraining the The Federal Reserve Board announced on March 3, transfer or disposition of the individual's assets. 1992, the execution of a Written Agreement among the In re Smouha, No. 91-B-13569 (Bkr. S.D. New York, Federal Reserve Bank of Richmond, the State of West filed August 2, 1991). Ancillary proceeding under Virginia Department of Banking, and the Bank of the U.S. Bankruptcy Code brought by provisional White Sulphur Springs, White Sulphur Springs, West liquidators of BCCI Holdings (Luxembourg) Virginia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 385 Georgetown Bancorp, Inc. Multibank Financial Corp. Georgetown, Kentucky Dedham, Massachusetts The Federal Reserve Board announced on March 3, The Federal Reserve Board announced on March 4, 1992, the execution of a Written Agreement among 1992, the execution of a Written Agreement between the Federal Reserve Bank of Cleveland, the Depart- the Federal Reserve Bank of Boston and Multibank ment of Financial Institutions of the State of Ken- Financial Corp., Dedham, Massachusetts. tucky, and Georgetown Bancorp, Inc., Georgetown, Kentucky. Prosperity Bank & Trust Company Springfield, Virginia Greater Chicago Financial Corporation Chicago, Illinois The Federal Reserve Board announced on March 13, 1992, the execution of a Written Agreement among the The Federal Reserve Board announced on March 25, Federal Reserve Bank of Richmond, the Bureau of 1992, the execution of a Written Agreement between Financial Institutions of the Commonwealth of Virthe Federal Reserve Bank of Chicago and Greater ginia, and the Prosperity Bank & Trust Company, Chicago Financial Corporation, Chicago, Illinois. Springfield, Virginia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

386 Directors of Federal Reserve Banks and Branches Regional decentralization and a combination of chosen without discrimination as to race, creed, governmental and private characteristics are im- color, sex, or national origin. portant hallmarks of the uniqueness of the Fed- Class A directors of each Reserve Bank repreeral Reserve System. Under the Federal Reserve sent the stockholding member banks of the Fed- Act, decentralization was achieved by division of eral Reserve District. Class B and Class C directhe country into twelve regions called Federal tors represent the public and are chosen with Reserve Districts, and the establishment in each due, but not exclusive, consideration to the in- District of a separately incorporated Federal terests of agriculture, commerce, industry, ser- Reserve Bank with its own board of directors. vices, labor, and consumers; they may not be The blending of governmental and private char- officers, directors, or employees of any bank. In acteristics is provided through ownership of the addition, Class C directors may not be stockholdstock of the Reserve Bank by member banks in ers of any bank. The Board of Governors desigits District, who also elect the majority of the nates annually one Class C director as chairman board of directors, and by the general supervi- of the board of directors of each District Bank, sion of the Reserve Banks by the Board of and designates another Class C director as dep- Governors, an agency of the federal government. uty chairman. The Board also appoints a minority of each board Each of the twenty-five Branches of Federal of directors. Thus, there are essential elements of Reserve Banks has a board of either seven or five regional participation and counsel in the conduct directors, a majority of whom are appointed by of the System's affairs for which the Federal the parent Federal Reserve Bank; the others are Reserve relies in an important way on the con- appointed by the Board of Governors. One of the tributions of the directors of the Federal Reserve Board's appointees is designated annually as Banks and Branches. chairman of the board of that Branch in a manner The following list of directors of Federal Re- prescribed by the parent Federal Reserve Bank. serve Banks and Branches shows for each direc- The names of the chairman and deputy chairtor the class of directorship, the principal busi- man of the board of directors of each Reserve ness affiliation, and the date the current term Bank and of the chairman of each Branch are expires. Each Federal Reserve Bank has nine published monthly in the Federal Reserve Bullemembers on its board of directors: the member tinJ banks elect the three Class A and three Class B directors, and the Board of Governors appoints the three directors in Class C. Directors are 1. The current list appears on page A90 of this Bulletin. DISTRICT 1—BOSTON Term expires Class A Dec. 31 Terrence Murray Chairman of the Board, President, and Chief Executive Officer, 1992 Fleet/Norstar Financial Group, Inc., Providence, Rhode Island Vacancy 1993 Robert M. Silva President, Chief Executive Officer, and Director, The Citizens 1994 National Bank, Putnam, Connecticut Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

387 DISTRICT 1—Continued Term expires Class B Dec. 31 Joan T. Bok Chairman of the Board, New England Electric System, 1992 Westborough, Massachusetts Stephen R. Levy Chairman of the Board and Chief Executive Officer, Bolt Beranek 1993 and Newman, Inc., Cambridge, Massachusetts Edward H. Ladd Chairman and Chief Executive Officer, Standish, Ayer and 1994 Wood, Inc., Boston, Massachusetts Class C Maurits C. Boas Professor of International Economics, Harvard 1992 Richard N. Cooper University, Cambridge, Massachusetts Executive Director, The Quality Connection, East Dennis, 1993 John E. Flynn Massachusetts Chairman of the Board and Chief Executive Officer, New England 1994 Jerome H. Grossman Medical Center, Inc., Boston, Massachusetts DISTRICT 2—NEW YORK Class A Chairman of the Board, President, and Chief Executive Officer, 1992 Victor J. Riley, Jr. KeyCorp, Albany, New York Chairman of the Board and Chief Executive Officer, Phillipsburg 1993 Barbara Harding National Bank and Trust Company, Phillipsburg, New Jersey Chairman and Chief Executive Officer, The Chase Manhattan Bank, 1994 Thomas G. Labrecque N.A., New York, New York Class B Chairman of the Board and Chief Executive Officer, International 1992 John A. Georges Paper, Purchase, New York Chairman, President, and Chief Executive Officer, ITT Corporation, 1993 Rand V. Araskog New York, New York Chairman and Chief Executive Officer, AT&T, New York, New 1994 Robert E. Allen York Class C Cyrus R. Vance Presiding Partner, Simpson Thacher & Bartlett, New York, New York 1992 Ellen V. Futter President, Barnard College, New York, New York 1993 Maurice R. Greenberg Chairman and Chief Executive Officer, American International 1994 Group, Inc., New York, New York -Buffalo Branch Appointed by the Federal Reserve Bank Wilbur F. Beh President, Atlanta National Bank, Atlanta, New York 1992 Susan A. McLaughlin General Credit Manager, Eastman Kodak Company, Rochester, 1993 New York Charles M. Mitschow Senior Executive Vice President, Regional Banking, Marine Midland 1994 Bank, N.A., Buffalo, New York Richard H. Popp Operating Partner, Southview Farm, Castile, New York 1994 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

388 Federal Reserve Bulletin • May 1992 DISTRICT 2—Continued TERM expires Buffalo Branch—Continued Dec• 31 Appointed by the Board of Governors Herbert L. Washington HLW Fast Track, Inc., Rochester, New York 1992 Joseph J. Castiglia President and Chief Executive Officer, Pratt & Lambert, Inc., 1993 Buffalo, New York Donald L. Rust Plant Manager, General Motors Powertrain Division, Tonawanda 1994 Engine Plant, Buffalo, New York DISTRICT 3—PHILADELPHIA Class A Chairman of the Board and Chief Executive Officer, Meridian 1992 Samuel A. McCullough Bancorp, Inc., Reading, Pennsylvania President and Chief Executive Officer, United Jersey Bank/South, 1993 Gary F. Simmerman N.A., Cherry Hill, New Jersey President and Chief Executive Officer, The First National Bank of 1994 H. Bernard Lynch Wyoming, Wyoming, Delaware Class B David W. Huggins President, RMS Technologies, Inc., Marlton, New Jersey 1992 James M. Mead President, Capital Blue Cross, Harrisburg, Pennsylvania 1993 James A. Hagen Chairman, President, and Chief Executive Officer, Consolidated Rail 1994 Corporation, Philadelphia, Pennsylvania Class C Chairman of the Board, Quaker Chemical Corporation, 1992 Peter A. Benoliel Conshohocken, Pennsylvania President, The Pennsylvania Horticultural Society, Philadelphia, 1993 Jane G. Pepper Pennsylvania Business Manager, International Brotherhood of Electrical Workers, 1994 Donald J. Kennedy Local Union No. 269, Trenton, New Jersey DISTRICT 4—CLEVELAND Class A Frank Wobst Chairman of the Board and Chief Executive Officer, Huntington 1992 Bancshares Incorporated, Columbus, Ohio Alfred C. Leist Chairman, President, and Chief Executive Officer, Apple Creek 1993 Banking Company, Apple Creek, Ohio William T. McConnell President, The Park National Bank, Newark, Ohio 1994 Class B Laban P. Jackson, Jr. Chairman of the Board, Clearcreek Properties, Lexington, Kentucky 1992 Verna K. Gibson Business Consultant, Columbus, Ohio 1993 Douglas E. Olesen President and Chief Executive Officer, Battelle Memorial Institute, 1994 Columbus, Ohio Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 389 DISTRICT 4—Continued Term expires Class C Dec. 31 A. William Reynolds Chairman and Chief Executive Officer, GenCorp, Fairlawn, Ohio 1992 John R. Hodges President, Ohio AFL-CIO, Columbus, Ohio 1993 John R. Miller Former President and Chief Operating Officer, 1994 The Standard Oil Company (Ohio), Cleveland, Ohio —Cincinnati Branch Appointed by the Federal Reserve Bank Clay Parker Davis President and Chief Executive Officer, Citizens National Bank, 1992 Somerset, Kentucky Jack W. Buchanan President, Sphar & Company, Inc., Winchester, Kentucky 1993 Harry A. Shaw, III Chairman and Chief Executive Officer, Huffy Corporation, 1993 Dayton, Ohio Marvin J. Stammen President and Chief Executive Officer, Second National Bank, 1994 Greenville, Ohio Appointed by the Board of Governors Eleanor Hicks Advisor for International Liaison Protocol and Services, and 1992 Associate Professor of Political Science, University of Cincinnati, Cincinnati, Ohio Marvin Rosenberg Partner, Towne Properties, Ltd., Cincinnati, Ohio 1993 Raymond A. Bradbury Chairman, Martin County Coal Corporation, Inez, Kentucky 1994 —Pittsburgh Branch Appointed by the Federal Reserve Bank William F. Roemer Chairman and Chief Executive Officer, Integra Financial 1992 Corporation, Pittsburgh, Pennsylvania George A. Davidson, Jr. Chairman and Chief Executive Officer, Consolidated Natural Gas 1993 Company, Pittsburgh, Pennsylvania I.N. Rendall Harper, Jr. President, American Micrographics Company, Inc., Monroeville, 1993 Pennsylvania David S. Dahlmann President and Chief Executive Officer, Southwest National 1994 Corporation, Greensburg, Pennsylvania Appointed by the Board of Governors Robert P. Bozzone President and Chief Executive Officer, Allegheny Ludlum 1992 Corporation, Pittsburgh, Pennsylvania Sandra L. Phillips Executive Director, Pittsburgh Partnership for Neighborhood 1993 Development, Pittsburgh, Pennsylvania Jack B. Piatt Chairman of the Board, Millcraft Industries, Inc., Washington, 1994 Pennsylvania DISTRICT 5—RICHMOND Class A A. Pierce Stone Chairman, President, and Chief Executive Officer, Virginia 1992 Community Bank, Louisa, Virginia James G. Lindley Chairman, President, and Chief Executive Officer, South Carolina 1993 National Bank, Columbia, South Carolina Webb C. Hayes IV President, The Palmer National Bank, Washington, D.C. 1994 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

390 Federal Reserve Bulletin • May 1992 DISTRICT 5—Continued Term expires Dec. 31 Class B R. E. Atkinson, Jr. Chairman, Dilmar Oil Company, Inc., Florence, South Carolina 1992 Paul A. DelaCourt Chairman, The North Carolina Enterprise Corporation, Raleigh, 1993 North Carolina L. Newton Thomas, Jr. Retired Senior Vice President, ITT/Carbon Industries, Inc., 1994 Charleston, West Virginia Class C Henry J. Faison President, Faison Associates, Charlotte, North Carolina 1992 Stephen Brobeck Executive Director, Consumer Federation of America, Washington, 1993 D.C. Anne Marie Whittemore Partner, McGuire, Woods, Battle & Boothe, Richmond, Virginia 1994 —Baltimore Branch Appointed by the Federal Reserve Bank Richard M. Adams Chairman and Chief Executive Officer, United Bankshares, Inc., 1992 Parkersburg, West Virginia Daniel P. Henson III Senior Development Director, Struever Bros., Eccles & Rouse, 1993 Inc., Baltimore, Maryland Admiral Thomas J. President, Navy Federal Credit Union, Vienna, Virginia 1994 Hughes F. Levi Ruark Chairman of the Board and President, The National Bank of 1994 Cambridge, Cambridge, Maryland Appointed by the Board of Governors John R. Hardesty, Jr. President, Preston Energy, Inc., Kingwood, West Virginia 1992 Michael R. Watson President, Association of Maryland Pilots, Annapolis, Maryland 1993 Rebecca Hahn Windsor Chairman and Chief Executive Officer, Hahn Transportation, Inc., 1994 New Market, Maryland —Charlotte Branch Appointed by the Federal Reserve Bank David B. Jordan President, Chief Executive Officer, and Director, Omni Capital 1992 Group, Inc. and OMNIBANK, Salisbury, North Carolina Jim M. Cherry, Jr. President and Chief Executive Officer, Williamsburg First National 1993 Bank, Kingstree, South Carolina Vacancy 1994 L. Glenn Orr, Jr. Chairman, President, and Chief Executive Officer, Southern 1994 National Corporation, Lumberton, North Carolina Appointed by the Board of Governors Anne M. Allen President, Anne Allen & Associates, Inc., Greensboro, North Carolina 1992 William E. Masters President, Perception, Inc., Easley, South Carolina 1993 Harold D. Kingsmore President and Chief Operating Officer, Graniteville Company, 1994 Graniteville, South Carolina Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 391 DISTRICT 6—ATLANTA Term expires Class A Dec. 31 W. H. Swain Chairman of the Board, First National Bank, Oneida, Tennessee 1992 James B. Williams Chairman and Chief Executive Officer, SunTrust Banks, Inc., 1993 Atlanta, Georgia Simpson Russell Chairman and Chief Executive Officer, The First National Bank of 1994 Florence, Florence, Alabama Class B Chairman of the Board and President, Sherman International 1992 J. Thomas Holton Corporation, Birmingham, Alabama Chairman of the Board and Chief Executive Officer, Rubenstein 1993 Andre M. Rubenstein Brothers, Inc., New Orleans, Louisiana Co-Owner, Gemini Springs Farm, DeBary, Florida 1994 Saundra H. Gray Class C Chairman of the Board and President, Engraph, Inc., Atlanta, 1992 Leo Benatar Georgia Senior Executive Vice President-Finance, Ryder System, Inc., 1993 Edwin A. Huston Miami, Florida President and Chief Executive Officer, BAMSI, Inc., Titusville, 1994 Hugh M. Brown Florida —Birmingham Branch Appointed by the Federal Reserve Bank Robert M. Barrett Chairman and President, The First National Bank of Wetumpka, 1992 Wetumpka, Alabama Julian W. Banton Chairman, President, and Chief Executive Officer, SouthTrust Bank 1993 of Alabama, N.A., Birmingham, Alabama Marlin D. Moore, Jr. Chairman, Pritchett-Moore, Inc., Tuscaloosa, Alabama 1994 Columbus Sanders President, Consolidated Industries, Inc., Huntsville, Alabama 1994 Appointed by the Board of Governors Nelda P. Stephenson President, Nelda Stephenson Chevrolet, Inc., Florence, Alabama 1992 Donald E. Boomershine President, Better Business Bureau of Central Alabama, Inc., 1993 Birmingham, Alabama Shelton E. Allred Chairman of the Board, President, and Chief Executive Officer, 1994 Frit Incorporated, Ozark, Alabama —Jacksonville Branch Appointed by the Federal Reserve Bank Merle L. Graser Chairman and Chief Executive Officer, First National Bank of 1992 Venice, Venice, Florida Hugh H. Jones, Jr. Chairman of the Board and Chief Executive Officer, Barnett Bank of 1993 Jacksonville, N.A., Jacksonville, Florida Perry M. Dawson President and Chief Executive Officer, Suncoast Schools Federal 1994 Credit Union, Tampa, Florida Arnold A. Heggestad William H. Dial Professor and Director, College of Business 1994 Administration, University of Florida, Gainesville, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

392 Federal Reserve Bulletin • May 1992 DISTRICT 6—Continued Term expires Jacksonville Branch—Continued Dec. 31 Appointed by the Board of Governors Lana Jane Lewis-Brent Vice Chairman of the Board, President, and Chief Executive Officer, 1992 Paul Brent Designer, Inc., Panama City, Florida Joan Dial Ruffier General Partner, Sunshine Cafes and Vice President, Vista 1993 Landscaping, Orlando, Florida Samuel H. Vickers Chairman, President, and Chief Executive Officer, Design 1994 Containers, Inc., Jacksonville, Florida —Miami Branch Appointed by the Federal Reserve Bank E. Anthony Newton President, Island National Bank of Palm Beach, Palm Beach, 1992 Florida Steven C. Shimp President, O-A-K/Florida, Inc., Fort Myers, Florida 1993 Pat L. Tornillo, Jr. Executive Vice President, United Teachers of Dade, Miami, Florida 1993 Roberto G. Blanco Vice Chairman and Chief Financial Officer, Republic National Bank 1994 of Miami, Miami, Florida Appointed by the Board of Governors R. Kirk Landon Chairman and Chief Executive Officer, American Bankers Insurance 1992 Group, Miami, Florida Michael T. Wilson President, Vinegar Bend Farms, Inc., Belle Glade, Florida 1993 Dorothy C. Weaver President, Intercap Investments, Inc., Coral Gables, Florida 1994 —Nashville Branch Appointed by the Federal Reserve Bank James D. Harris President and Chief Executive Officer, Brentwood National Bank, 1992 Brentwood, Tennessee Williams E. Arant, Jr. President and Chief Executive Officer, First National Bank of 1993 Knoxville, Knoxville, Tennessee William Baxter Lee III Chairman and President, Southeast Services Corporation, Knoxville, 1994 Tennessee Marguerite W. Sallee President and Chief Executive Officer, Corporate Child Care 1994 Management Services, Nashville, Tennessee Appointed by the Board of Governors Harold A. Black Professor and Head, Department of Finance, College of Business 1992 Administration, University of Tennessee, Knoxville, Tennessee Victoria B. Jackson President and Chief Executive Officer, DSS/Prodiesel, Inc., 1993 Nashville, Tennessee James R. Tuerflf President and Chief Executive Officer, American General Life and 1994 Accident Insurance Company, Nashville, Tennessee Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 393 DISTRICT 6—Continued Term expires Dec. 31 —New Orleans Branch Appointed by the Federal Reserve Bank Earl W. Lundy Chairman of the Board and Chief Executive Officer, First National 1992 Bank of Vicksburg, Vicksburg, Mississippi A. Hartie Spence President, Calcasieu Marine National Bank, Lake Charles, Louisiana 1993 Joel B. Bullard, Jr. President, Joe Bullard Automotive Companies, Mobile, Alabama 1994 Kay L. Nelson Managing Director, Nelson Capital Corporation, New Orleans, 1994 Louisiana Appointed by the Board of Governors Lucimarian Tolliver President, Mississippi Coast Coliseum Commission, Pass Christian, 1992 Roberts Mississippi Victor Bussie President, Louisiana AFL-CIO, Baton Rouge, Louisiana 1993 Jo Ann Slaydon President, Slaydon Consultants, Baton Rouge, Louisiana 1994 DISTRICT 7—CHICAGO Class A Chairman of the Board and Chief Executive Officer, Bartonville 1992 B.F. Backlund Bank, Peoria, Illinois Chairman, President, and Chief Executive Officer, The Northern Trust 1993 David W. Fox Corporation and The Northern Trust Company, Chicago, Illinois Chairman of the Board, President, and Chief Executive Officer, First 1994 Stefan S. Anderson Merchants Corporation and First Merchants Bank, Muncie, Indiana Class B Paul J. Schierl Financial Consultant, Green Bay, Wisconsin 1992 A. Charlene Sullivan Associate Professor of Management, Krannert Graduate School of 1993 Management, Purdue University, West Lafayette, Indiana Thomas C. Dorr President and Chief Executive Officer, Dorr's Pine Grove Farm Co., 1994 Marcus, Iowa Class C Chairman of the Board, President, and Chief Executive Officer, 1992 Richard G. Cline NICOR, Inc., Naperville, Illinois President, Chicago Federation of Labor and Industrial Union 1993 Robert M. Healey Council, AFL-CIO, Chicago, Illinois Chairman and Chief Executive Officer, Abbott Laboratories, 1994 Duane L. Burnham Abbott Park, Illinois —Detroit Branch Appointed by the Federal Reserve Bank Norman F. Rodgers President and Chief Executive Officer, Hillsdale County National 1992 Bank, Hillsdale, Michigan Charles E. Allen President and Chief Executive Officer, Graistone Realty Advisors, 1993 Inc., Detroit, Michigan William E. Odom Chairman, Ford Motor Credit Company, Dearborn, Michigan 1993 Daniel R. Smith Chairman and Chief Executive Officer, First of America Bank 1994 Corporation, Kalamazoo, Michigan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

394 Federal Reserve Bulletin • May 1992 DISTRICT 7— Continued Term expires —Detroit Branch—Continued Dec. 31 Appointed by the Board of Governors J. Michael Moore Chairman of the Board and Chief Executive Officer, Invetech 1992 Company, Detroit, Michigan Beverly A. Beltaire President, P R Associates, Inc., Detroit, Michigan 1993 John D. Forsyth Executive Director, University of Michigan Hospitals, Ann Arbor, 1994 Michigan DISTRICT 8—ST. LOUIS Class A Chairman of the Board, Simmons First National Bank of Pine Bluff, 1992 W.E. Ayres Pine Bluff, Arkansas Chairman, Director, and Chief Executive Officer, Jackson National 1993 Ray U. Tanner Bank, Jackson, Tennessee President, First National Bank in Pinckneyville, Pinckneyville, Illinois 1994 Henry G. River, Jr. Class B Frank M. Mitchener, Jr. President, Mitchener Farms, Inc., Sumner, Mississippi 1992 Warren R. Lee President, W. R. Lee & Associates, Inc., Louisville, Kentucky 1993 Sandra B. Sanderson- President and Chief Executive Officer, Sanderson Plumbing 1994 Chesnut Products, Inc., Columbus, Mississippi Class C H. Edwin Trusheim Chairman and Chief Executive Officer, General American Life 1992 Insurance Company, St. Louis, Missouri Janet McAfee Weakley President, Janet McAfee, Inc., St. Louis, Missouri 1993 Robert H. Quenon Mining Consultant, St. Louis, Missouri 1994 —Little Rock Branch Appointed by the Federal Reserve Bank Patricia M. Townsend President, Townsend Company, Stuttgart, Arkansas 1992 James V. Kelley Chairman, President, and Chief Executive Officer, First United 1993 Bancshares, Inc., El Dorado, Arkansas Mahlon A. Martin President, Winthrop Rockefeller Foundation, Little Rock, Arkansas 1993 Barnett Grace Chairman and Chief Executive Officer, First Commercial Bank, 1994 N.A., Little Rock, Arkansas Appointed by the Board of Governors James R. Rodgers Airport Manager, Little Rock Regional Airport, Little Rock, Arkansas 1992 L. Dickson Flake President, Barnes, Quinn, Flake & Anderson, Inc., Little Rock, 1993 Arkansas Robert Daniel Nabholz, Jr. Chief Executive Officer, Nabholz Construction Corporation, 1994 Conway, Arkansas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 395 DISTRICT 8—Continued Term expires —Louisville Branch ^ec• Appointed by the Federal Reserve Bank Morton Boyd Chairman and Chief Executive Officer, First Kentucky National 1992 Corporation, Louisville, Kentucky Robert M. Hall Owner, Mike Hall Farm, Seymour, Indiana 1993 Charles D. Storms President and Chief Executive Officer, Red Spot Paint and Varnish 1993 Company, Inc., Evansville, Indiana Douglas M. Lester Chairman, President, and Chief Executive Officer, Trans Financial 1994 Bancorp, Inc., Bowling Green, Kentucky Appointed by the Board of Governors Daniel L. Ash Managing Director, Louisville Energy and Environment 1992 Corporation, Louisville, Kentucky John A. Williams Chairman and Chief Executive Officer, Computer Services, Inc., 1993 Paducah, Kentucky Laura M. Douglas Legal Director, Metropolitan Sewer District, Louisville, Kentucky 1994 —Memphis Branch Appointed by the Federal Reserve Bank Michael J. Hennessey President, Munro & Company, Inc., Wynne, Arkansas 1992 Thomas M. Garrott President and Chief Operating Officer, National Bank of Commerce 1993 and National Commerce Bancorporation, Memphis, Tennessee Larry A. Watson Chairman of the Board and President, Liberty Federal Savings 1993 Bank, Paris, Tennessee Lewis F. Mallory, Jr. President and Chief Executive Officer, National Bank of Commerce 1994 of Mississippi, Starkville, Mississippi Appointed by the Board of Governors M. Rita Schroeder President, St. Francis Hospital, Memphis, Tennessee 1992 Seymour B. Johnson Owner, Kay Planting Company, Indianola, Mississippi 1993 A.C. Wharton, Jr. Partner, Wharton & Wharton & Associates, Memphis, Tennessee 1994 DISTRICT 9—MINNEAPOLIS Class A Chairman of the Board, Farmers and Merchants Bank and Trust 1992 Rodney W. Fouberg Co., Aberdeen, South Dakota President and Chief Executive Officer, First State Bank of Warner, 1993 Charles L. Seaman Warner, South Dakota Chairman and Chief Executive Officer, First Bank Montana, N.A., 1994 William W. Strausburg and General Manager, First Bank-Regional Banking Group, Billings, Montana Class B Bruce C. Adams Partner, Triple Adams Farms, Minot, North Dakota 1992 Earl R. St. John, Jr. President, St. John Forest Products, Inc., Spalding, Michigan 1993 Duane E. Dingmann President, Trubilt Auto Body, Inc., Eau Claire, Wisconsin 1994 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

396 Federal Reserve Bulletin • May 1992 DISTRICT 9—Continued Term expires Dec. 31 Class C Gerald A. Rauenhorst Chairman of the Board and Chief Executive Officer, Opus 1992 Corporation, Minneapolis, Minnesota Delbert W. Johnson President and Chief Executive Officer, Pioneer Metal Finishing, 1993 Minneapolis, Minnesota Jean D. Kinsey Professor, Consumption and Consumer Economics, Department of 1994 Agricultural and Applied Economics, University of Minnesota, St. Paul, Minnesota —Helena Branch Appointed by the Federal Reserve Bank Donald E. Olsson, Jr. Executive Vice President, Ronan State Bank, Ronan, Montana 1992 Nancy M. Stephenson Executive Director, Neighborhood Housing Services, Great Falls, 1992 Montana Beverly D. Harris President, Empire Federal Savings and Loan Association, 1993 Livingston, Montana Appointed by the Board of Governors J. Frank Gardner President, Montana Resources, Inc., $utte, Montana 1992 James E. Jenks Jenks Farms, Hogeland, Montana 1993 DISTRICT 10—KANSAS CITY Class A Chairman and Chief Executive Officer, First National Bank, 1992 Harold L. Gerhart, Jr. Newman Grove, Nebraska Co-Chairman of the Board, FirstBank Holding Company of 1993 Roger L. Reisher Colorado, Lake wood, Colorado Chairman and Chief Executive Officer, The First National Bank of 1994 Charles I. Moyer Phillipsburg, Phillipsburg, Kansas Class B Frank A. McPherson Chairman of the Board and Chief Executive Officer, Kerr-McGee 1992 Corporation, Oklahoma City, Oklahoma Don E. Adams Buffalo, Oklahoma 1993 Frank J. Yaklich, Jr. President and Chief Executive Officer, CF & I Steel Corporation, 1994 Pueblo, Colorado Class C President and Chief Executive Officer, Godfather's Pizza, Inc., 1992 Herman Cain Omaha, Nebraska President and General Manager, Thomas E. Rodriguez & 1993 Thomas E. Rodriguez Associates, P.C., Aurora, Colorado Chairman of the Board and President, Puritan-Bennett Corporation, 1994 Burton A. Dole, Jr. Overland Park, Kansas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 397 DISTRICT 10—Continued Term expires Dec. 31 —Denver Branch Appointed by the Federal Reserve Bank Henry A. True III Partner, True Companies, Casper, Wyoming 1992 Peter R. Decker President, Decker & Associates, Denver, Colorado 1993 Clifford E. Kirk President and Chief Executive Officer, First National Bank of 1994 Gillette, Gillette, Wyoming Richard I. Ledbetter President and Chief Executive Officer, First National Bank of 1994 Farmington, Farmington, New Mexico Appointed by the Board of Governors Sandra K. Woods Vice President, Corporate Real Estate, Adolph Coors Company, 1992 Golden, Colorado Gilbert Sanchez President, New Mexico Highlands University, Las Vegas, 1993 New Mexico Barbara B. Grogan President, Western Industrial Contractors, Inc., Denver, Colorado 1994 —Oklahoma City Branch Appointed by the Federal Reserve Bank Gordona Duca President and Owner, Gordona Duca, Inc., Tulsa, Oklahoma 1992 John Wm. Laisle President and Chief Executive Officer, MidFirst Bank, SSB, 1992 Oklahoma City, Oklahoma C. Kendric Fergeson Chairman of the Board and Chief Executive Officer, The National 1993 Bank of Commerce, Altus, Oklahoma Appointed by the Board of Governors William R. Allen, Jr. President and Chief Executive Officer, Union Equity Co-Operative 1992 Exchange, Enid, Oklahoma Ernest L. Holloway President, Langston University, Langston, Oklahoma 1993 —Omaha Branch Appointed by the Federal Reserve Bank John R. Cochran President and Chief Executive Officer, Norwest Bank Nebraska, 1992 N.A., Omaha, Nebraska Donald A. Leu President and Chief Executive Officer, Consumer Credit Counseling 1993 Service, Omaha, Nebraska Thomas H. Olson President and Chief Executive Officer, First National Bank, Sidney, 1993 Nebraska Appointed by the Board of Governors Sheila Griffin Special Advisor to the Governor for International Trade, Lincoln, 1992 Nebraska LeRoy W. Thorn President, T-L Irrigation Company, Hastings, Nebraska 1993 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

398 Federal Reserve Bulletin • May 1992 DISTRICT 11—DALLAS Term expires Dec. 31 Class A Robert G. Greer Chairman of the Board, Tanglewood Bank, N.A., Houston, Texas 1992 T.C. Frost Chairman of the Board, Frost National Bank, San Antonio, Texas 1993 Eugene M. Phillips Chairman of the Board and President, The First National Bank of 1994 Panhandle, Panhandle, Texas Class B Gary E. Wood President, Texas Research League, Austin, Texas 1992 J.B. Cooper, Jr. Farmer, Roscoe, Texas 1993 Peyton Yates President, Yates Drilling Company, and Executive Vice President, 1994 Yates Petroleum Corporation, Artesia, New Mexico Class C Chairman of the Board and Chief Executive Officer, Linbeck 1992 Leo E. Linbeck, Jr. Construction Corporation, Houston, Texas Chairman and Chief Executive Officer, Cisneros Asset Management 1993 Henry G. Cisneros Co., San Antonio, Texas General Partner, Phillips-Smith Specialty Retail Group, Dallas, Texas 1994 Cece Smith —El Paso Branch Appointed by the Federal Reserve Bank Wayne Merritt Chairman and President, Texas National Bank, Midland, Texas 1992 Veronica K. Callaghan Vice President and Principal, KASCO Ventures, Inc., El Paso, Texas 1993 Ben H. Haines, Jr. President and Chief Operating Officer, First National Bank of Dona 1993 Ana County, Las Cruces, New Mexico Hugo Bustamante, Jr. Owner and Chief Executive Officer, CarLube Inc. dba ProntoLube, 1994 El Paso, Texas Appointed by the Board of Governors W. Thomas Beard III President, Leoncita Cattle Company, Alpine, Texas 1992 Diana S. Natalicio President, The University of Texas at El Paso, El Paso, Texas 1993 Alvin T. Johnson Senior Vice President, Management Assistance Corporation of 1994 America, El Paso, Texas —Houston Branch Appointed by the Federal Reserve Bank Jenard M. Gross President, Gross Builders, Inc., Houston, Texas 1992 Walter E. Johnson President and Chief Executive Officer, Southwest Bank of Texas, 1993 Houston, Texas Clive Runnells President and Director, Runnells Cattle Company, Bay City, Texas 1993 Tieman H. Dippel, Jr. Chairman of the Board and President, Brenham Bancshares, Inc., 1994 Brenham, Texas Appointed by the Board of Governors Judy Ley Allen Partner and Administrator, Allen Investments, Houston, Texas 1992 Milton Carroll Chairman and Chief Executive Officer, Instrument Products, Inc., 1993 Houston, Texas Isaac H. Kempner III Chairman of the Board, Imperial Holly Corporation, Sugar Land, 1994 Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 399 DISTRICT 11—Continued Term expires —San Antonio Branch Dec. 31 Appointed by the Federal Reserve Bank Gregory W. Crane Chairman of the Board, President, and Chief Executive Officer, 1992 Broadway National Bank, San Antonio, Texas Javier Garza Executive Vice President, The Laredo National Bank, Laredo, Texas 1993 Sam R. Sparks President, Sam R. Sparks, Inc., Santa Rosa, Texas 1993 T. Jack Moore III Owner and Manager, T.J. Moore Lumber Inc., Ingram, Texas 1994 Appointed by the Board of Governors Lawrence E. Jenkins Vice President (Retired), Lockheed Missiles and Space Company, 1992 Austin, Texas Erich Wendl President and Chief Executive Officer, Maverick Markets, Inc., 1993 Corpus Christi, Texas Roger R. Hemminghaus Chairman, President, and Chief Executive Officer, Diamond 1994 Shamrock, Inc., San Antonio, Texas DISTRICT 12—SAN FRANCISCO Class A Warren K.K. Luke President and Director, Hawaii National Bancshares, Inc., and Vice 1992 Chairman of the Board and Chief Executive Officer, Hawaii National Bank, Honolulu, Hawaii Richard L. Mount Chairman, President, and Chief Executive Officer, Saratoga 1993 Bancorp, Saratoga, California William E.B. Siart President, First Interstate Bancorp, Los Angeles, California 1994 Class B E. Kay Stepp President and Chief Operating Officer, Portland General Electric, 1992 Portland, Oregon John N. Nordstrom Co-Chairman of the Board, Nordstrom, Inc., Seattle, Washington 1993 William L. Tooley Chairman, Tooley & Company, Investment Builders, Los Angeles, 1994 California Class C Robert F. Erburu Chairman of the Board and Chief Executive Officer, The Times 1992 Mirror Company, Los Angeles, California Chairman and Chief Executive Officer (Retired), Kaiser Foundation 1993 James A. Vohs Health Plan, Inc., and Kaiser Foundation Hospitals, Oakland, California Co-Managing Partner, Foster Pepper and Shefelman, Seattle, 1994 Judith M. Runstad Washington —Los Angeles Branch Appointed by the Federal Reserve Bank Fred D. Jensen Vice Chairman, Aktiv Bank Holding Company, Long Beach, 1992 California AAnniittaa LLaannddeecckkeerr Regional Vice President, Local Initiatives Support Corporation, 1993 Los Angeles, California William S. Randall Chief Executive Officer, Southwest Region, First Interstate Bank, 1994 Phoenix, Arizona Ignacio E. Lozano, Jr. Editor-in-Chief, La Opinion, Los Angeles, California 1994 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

400 Federal Reserve Bulletin • May 1992 DISTRICT 12—Continued TERM expires Los Angeles Branch—Continued Dec• 31 Appointed by the Board of Governors Vacancy 1992 Donald G. Phelps Chancellor, Los Angeles Community College District, Los Angeles, 1993 California Walfred J. Fassler Regional Vice President, Chevron U.S.A. Inc., Los Angeles, 1994 California —Portland Branch Appointed by the Federal Reserve Bank Elizabeth K. Johnson President, TransWestern Helicopters, Inc., Scappoose Industrial 1992 Airpark, Scappoose, Oregon Cecil W. Drinkward President, Hoffman Construction Company, Portland, Oregon 1993 Stephen G. Kimball Chairman, President, and Chief Executive Officer, Baker Boyer 1993 Bancorp, Walla Walla, Washington Stuart H. Compton Chairman, Pioneer Trust Bank, N.A., Salem, Oregon 1994 Appointed by the Board of Governors Wayne E. Phillips, Jr. Vice President, Phillips Ranch, Inc., Baker, Oregon 1992 Ross R. Runkel Professor of Law and Director, Willamette University Center for 1993 Dispute Resolution, Salem, Oregon William A. Hilliard Editor, The Oregonian, Portland, Oregon 1994 —Salt Lake City Branch Appointed by the Federal Reserve Bank Ronald S. Hanson Member of the Board and Member of the Executive Committee, 1992 Zions First National Bank, Salt Lake City, Utah Curtis H. Eaton Vice President; Manager, Community Banking Area; and Member of 1993 the Board of Directors, First Security Bank of Idaho, N.A., Twin Falls, Idaho Virginia P. Kelson Partner, Ralston Consulting Group, Salt Lake City, Utah 1993 Gerald R. Sherratt President, Southern Utah University, Cedar City, Utah 1994 Appointed by the Board of Governors Gary G. Michael Chairman and Chief Executive Officer, Albertson's, Inc., Boise, 1992 Idaho Constance G. Hogland Executive Director, Boise Neighborhood Housing Services, Inc., 1993 Boise, Idaho H. Roger Boyer Chairman of the Board, The Boyer Company, Salt Lake City, Utah 1994 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 401 DISTRICT 12—Continued Term expires Dec. 31 —Seattle Branch Appointed by the Federal Reserve Bank H.H. Larison President and Chief Executive Officer, Columbia Paint & Coatings, 1992 Spokane, Washington B.R. Beeksma Chairman of the Board, InterWest Savings Bank, 1993 Oak Harbor, Washington Gerry B. Cameron President and Chief Executive Officer, U.S. Bank of Washington, 1993 N.A., Seattle, Washington Robert P. Gray President, National Bank of Alaska, Anchorage, Alaska 1994 Appointed by the Board of Governors Emilie A. Adams President and Chief Executive Officer, Better Business Bureau, 1992 Seattle, Washington George F. Russell, Jr. Chairman, Frank Russell Company, Tacoma, Washington 1993 William R. Wiley Senior Vice President, Technology Management, and Director, 1994 Pacific Northwest Division, Battelle Memorial Institute, Richland, Washington Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1 Financial and Business Statistics CONTENTS WEEKLY REPORTING COMMERCIAL BANKS Assets and liabilities A3 Guide to Tabular Presentation A20 All reporting banks A22 Branches and agencies of foreign banks Domestic Financial Statistics MONEY STOCK AND BANK CREDIT FINANCIAL MARKETS A4 Reserves, money stock, liquid assets, and debt A23 Commercial paper and bankers dollar measures acceptances outstanding A5 Reserves of depository institutions, Reserve Bank A23 Prime rate charged by banks on short-term credit business loans A6 Reserves and borrowings—Depository A24 Interest rates—money and capital markets institutions A25 Stock market—Selected statistics A7 Selected borrowings in immediately available A26 Selected financial institutions—Selected assets funds—Large member banks and liabilities POLICY INSTRUMENTS FEDERAL FINANCE A8 Federal Reserve Bank interest rates A26 Federal fiscal and financing operations A9 Reserve requirements of depository institutions A27 U.S. budget receipts and outlays A10 Federal Reserve open market transactions A28 Federal debt subject to statutory limitation A28 Gross public debt of U.S. Treasury—Types and ownership FEDERAL RESERVE BANKS A29 U.S. government securities dealers—Transactions All Condition and Federal Reserve note statements A30 U.S. government securities dealers—Positions A12 Maturity distribution of loan and security and financing holdings 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 A3 3 Open-end investment companies—Net sales and asset position COMMERCIAL BANKING INSTITUTIONS A33 Corporate profits and their distribution A33 Total nonfarm business expenditures on new A18 Major nondeposit funds plant and equipment A19 Assets and liabilities, last-Wednesday-of-month A34 Domestic finance companies—Assets and series liabilities and business credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • May 1992 Domestic Financial Statistics—Continued A55 Foreign branches of U.S. banks—Balance sheet data A57 Selected U.S. liabilities to foreign official REAL ESTATE institutions A35 Mortgage markets A36 Mortgage debt outstanding REPORTED BY BANKS IN THE UNITED STATES CONSUMER INSTALLMENT CREDIT A57 Liabilities to and claims on foreigners A58 Liabilities to foreigners A37 Total outstanding and net change A60 Banks' own claims on foreigners A3 8 Terms A61 Banks' own and domestic customers' claims on foreigners A61 Banks' own claims on unaffiliated foreigners FLOW OF FUNDS A62 Claims on foreign countries—Combined domestic offices and foreign branches A39 Funds raised in U.S. credit markets A41 Direct and indirect sources of funds to credit markets REPORTED BY NONBANKING BUSINESS A42 Summary of credit market debt outstanding ENTERPRISES IN THE UNITED STATES 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 A44 Nonfinancial business activity—Selected A66 Marketable U.S. Treasury bonds and measures notes—Foreign transactions 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 Statistical Releases and Special Tables International Statistics SPECIAL TABLES SUMMARY STATISTICS A70 Assets and liabilities of commercial banks, A53 U.S. international transactions—Summary December 31, 1991 A54 U.S. foreign trade A76 Assets and liabilities of U.S. branches and agencies A54 U.S. reserve assets of foreign banks, December 31,1991 A54 Foreign official assets held at Federal Reserve A81 Assets and liabilities of life insurance companies, Banks September 30, 1991 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS c Corrected GNP Gross national product e Estimated HUD Department of Housing and Urban p Preliminary Development r Revised (Notation appears on column heading IMF International Monetary Fund when about half of 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 onfinancialS tatistics • May 1992 1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 1991 1991 1992 MMoonneettaarryy aanndd ccrreeddiitt aaggggrreeggaattee Qlr Q2r Q3r Q4r Oct.r Nov. Dec.r Jan.r Feb. Reserves of depository institutions2 1 Total 9.1 3.0 7.4 15.3 15.7 20.3 24.1 13.7 45.3 2 Required 4.5 8.9 7.9 15.5 12.3 25.3 22.5 13.4 44.7 3 Nonborrowed 8.9 3.4 4.3 19.3 25.0 24.0 22.2 12.8 48.9 4 Monetary base3 13.3 4.2 6.6 8.4 9.2 8.2 7.8 9.1 16.4 Concepts of money, liquid assets, and debt* 5 Ml 5.3 7.4 7.5 11.1 12.2 14.3 9.2 16.2 27.0 6 M2 3.7 4.4 .7 2.3 2.1 4.8r 2.9 3.2 9.4 7 M3 3.4 1.8 -1.3 1.0 1.8 2.5r 1.4 1.4 7.0 8 L 2.8 -1.9 .7 .2 .9 3.r -.4 -1.0 n.a. 9 Debt 4.4 4.2 4.7 4.3 4.5 4.5r 3.0 2.4 n.a. Nontrgnsaction components 10 In M2y 3.2 3.4 -1.6 -.7 -1.4 1.5r .7 -1.4 3.2 11 In M3 only6 2.0 -9.7 -9.9 -4.9 .5 -8.3 -5.7 -7.0 -4.4 Time and savings deposits Commercial banks 12 Savings, including MMDAs 8.3 13.1 13.2 16.0 17.0 18.0 17.4 20.0 22.9 13 Small time 10.4 1.0 1.6 -8.4 -10.5 -15.0 -15.6 -21.7 -24.3 14 Large time8' 5.2 -3.3 -8.0 -14.4 -17.9 -18.2 -10.4 -25.8 -12.5 Thrift institutions 15 Savings, including MMDAs -.4 16.8 9.8 10.2 11.8 13.0 14.1 24.1 31.1 16 Small time -10.6 -14.2 -24.2 -22.5 -25.4 -20.7r -21.1 -24.5 -31.1 17 Large time • -33.4 -35.0 -40.3 -36.5 -39.8 -31.6 -28.2 -24.5 -35.4 Money market mutual funds IK General purpose and broker-dealer 16.9 7.6 -4.7 -4.0 -2.0 .7r 3.3 -1.7 12.3 19 Institution-only 43.0 28.8 11.4 37.2 41.3 38.5 38.0 22.1 38.2 Debt components4 20 Federal 10.4 6.8 13.9 12.2 13.1 10.8r 7.7 5.9 n.a. 21 Nonfederal 2.6 3.4 1.9 1.7 1.7 2.4r 1.5 1.2 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 fund balances (institution-only), less (5) a general-purpose and broker-dealer money market funds. Excludes individual consolidation adjustment that represents the estimated amount of overnight RPs retirement accounts (IRAs) and Keogh balances at depository institutions and and Eurodollars held by institution-only money market funds. 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 M1. 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 1992 1992 Dec. Jan. Feb. Jan. 15 Jan. 22 Jan. 29 Feb. 5 Feb. 12 Feb. 19 Feb. 26 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 312,013 307,590 304,147 307,108 306,410 303,526 302,900 302,753 306,852 304,294 U.S. government securities2 2 Bought outright-system account 266,743 264,753 263,190 265,888 264,615 262,404 260,973 262,086 263,633 264,988 3 Held under repurchase agreements — 4,993 1,489 776 0 562 0 1,512 0 2,207 0 Federal agency obligations 4 Bought outright 6,081 6,005 5,960 6,015 6,001 5,969 5,960 5,960 5,960 5,960 5 Held under repurchase agreements — 144 32 40 0 12 0 58 0 128 0 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 84 279 63 47 199 77 137 35 56 42 8 Seasonal credit 39 16 22 10 15 19 21 21 23 22 9 Extended credit 1 1 2 0 0 1 3 1 2 3 10 Float 845 797 688 971 808 591 349 674 1,084 587 11 Other Federal Reserve assets 33,084 34,219 33,406 34,176 34,199 34,465 33,887 33,976 33,759 32,692 12 Gold stock 11,058 11,058 11,058 11,058 11,058 11,058 11,058 11,058 11,058 11,058 13 Special drawing rights certificate account . 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 14 Treasury currency outstanding 21,001 21,039 21,086 21,034 21,043 21,052 21,060 21,074 21,088 21,102 ABSORBING RESERVE FUNDS 15 Currency in circulation 304,649 303,218 301,654 303,836 301,943 300,563 300,115 301,380 302,685 302,026 16 Treasury cash holdings 632 666 689 674 677 678 684 685 691 693 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 7,816 7,180 6,241 5,455 6,072 8,853 8,599 6,584 5,874 5,139 18 Foreign 284 369 225 389 291 283 259 222 223 207 19 Service-related balances and adjustments 4,148 4,330 4,529 4,202 4,321 4,640 4,556 4,532 4,436 4,561 20 Other n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 21 Other Federal Reserve liabilities and capital 9,204 8,440 7,929 8,592 8,538 8,515 7,728 7,731 8,151 8,2% 22 Reserve balances with Federal Reserve Banks 27,088 25,240 24,799 25,833 26,471 21,912 22,845 23,525 26,701 25,325 End-of-month figures Wednesday figures 1991 1992 1992 Dec. Jan. Feb. Jan. 15 Jan. 22 Jan. 29 Feb. 5 Feb. 12 Feb. 19 Feb. 26 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 323,906 306,533 303,555 306,589 312,057 303,033 300,954 303,896 317,969 304,020 U.S. government securities2 2 Bought outright-system account 266,486 262,619 265,423 264,909 265,146 261,957 260,459 262,670 264,161 264,912 3 Held under repurchase agreements ... 15,345 3,529 0 0 3,932 0 0 0 9,469 0 Federal agency obligations 4 Bought outright 6,045 5,960 5,960 6,011 5,976 5,960 5,960 5,960 5,960 5,960 5 Held under repurchase agreements ... 553 135 0 0 83 0 0 0 522 0 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 194 88 35 174 1,142 93 484 31 55 34 8 Seasonal credit 23 21 25 10 17 23 18 22 22 24 9 Extended credit 1 3 2 0 0 3 1 2 2 2 10 Float 731 198 290 1,508 1,140 375 257 1,113 4,837 303 11 Other Federal Reserve assets 34,529 33,980 31,821 33,977 34,622 34,622 33,775 34,098 32,942 32,785 12 Gold stock 11,059 11,058 11,058 11,058 11,058 11,058 11,058 11,058 11,058 11,058 13 Special drawing rights certificate account . 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 14 Treasury currency outstanding 21,017 21,060 21,116 21,034 21,043 21,052 21,060 21,074 21,088 21,102 ABSORBING RESERVE FUNDS 15 Currency in circulation 307,759 299,879 301,391 302,953 301,693 300,193 300,569 302,218 303,006 301,744 16 Treasury cash holdings 636 684 698 677 677 681 684 691 692 698 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 17,697 10,828 5,477 5,002 9,163 9,048 7,400 5,834 6,407 5,103 18 Foreign 968 321 264 406 307 554 1% 224 209 207 19 Service-related balances and adjustments 4,108 4,556 4,623 4,202 4,321 4,640 4,556 4,532 4,436 4,561 20 Other n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 21 Other Federal Reserve liabilities and capital 8,113 7,629 7,222 8,248 8,383 8,319 7,476 7,831 8,169 8,121 22 Reserve balances with Federal Reserve Banks 25,014 24,520 25,842 27,004 29,431 21,507 21,956 24,467 37,007 25,509 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 • May 1992 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Prorated monthly averages of biweekly averages RReesseerrvvee ccllaassssiiffiiccaattiioonn 1989 1990 1991 1991 1992 Dec. Dec. Dec. Aug. Sept. Oct. Nov. Dec. Jan. Feb. 1 Reserve balances with Reserve Banks2 35,436 30,237 26,659 22,810 23,447 23,197 25,004 26,659 25,416 24,918 2 Total vault cash' 29,828 31,786 32,513 31,779 31,536 32,299 31,714 32,513 34,136 34,220 3 Applied vault cash 27,374 28,884 28,872 27,798 27,680 28,386 28,053 28,872 30,396r 30,320 4 Surplus vault cash 2,454 2,903 3,641 3,981 3,856 3,913 3,661 3,641 3,740"^ 3,899 5 Total reserves6 62,810 59,120 55,532 50,607 51,127 51,584 53,057 55,532 55,812r 55,238 6 Required reserves 61,887 57,456 54,553 49,521 50,198 50,501 52,165 54,553 54,809 54,173 7 Excess reserve balances at Reserve Banks ... 923 1,664 979 1,086 929 1,083 892 979 l,003r 1,065 8 Total borrowings at Reserve Banks8 265 326 192 764 645 261 108 192 233 77 9 Seasonal borrowings 84 76 38 331 287 211 86 38 17 22 10 Extended credit9 20 23 1 300 302 12 1 1 1 2 Biweekly averages of daily figures for weeks ending 1991 1992 Oct. 30 Nov. 13 Nov. 27 Dec. 11 Dec. 25 Jan. 8 Jan. 22 Feb. 5r Feb. 19 Mar. 4 1 Reserve balances with Reserve Banks 22,980 25,494 24,155 26,839 26,133 27,557 26,147 22,374 25,108 25,922 2 Total vault cash3 32,376 30,844 32,656 31,093 33,284 33,318 33,157 36,386 34,356 32,946 3 Applied vault cash4, 28,377 27,326 28,825 27,607 29,554 29,601 29,732 32,137 30,494 29,169 4 Surplus vault cash5 3,999 3,518 3,832 3,486 3,730 3,717 3,425 4,250 3,862 3,777 5 Total reserves6 51,357 52,820 52,979 54,446 55,687 57,158 55,879 54,511 55,602 55,091 6 Required reserves 50,191 51,907 52,045 53,842 54,484 56,020 54,966 53,488 54,435 54,148 7 Excess reserve balances at Reserve Banks7 ... 1,167 913 934 605 1,203 1,138 913 1,023 1,168 943 8 Total borrowings at Reserve Banks 225 114 103 110 116 521 136 130 69 63 9 Seasonal borrowings 191 98 84 45 41 22 13 20 22 24 10 Extended credit9 14 2 2 1 1 1 0 2 2 3 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 1992, week ending Monday SSoouurrccee aanndd mmaattuurriittyy Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 30 Jan. 6 Jan. 13 Jan. 20 Jan. 27 Federal funds purchased, repurchase agreements, and other selected borrowings From commercial banks in the United States 1 For one day or under continuing contract 79,542 81,803 79,407 73,630 72,002 77,955 77,529 82,462 75,983 2 For all other maturities 17,522 17,008 17,290 17,135 17,424 17,077 16,791 16,795 16,217 From other depository institutions, foreign banks and official institutions, and U.S. government agencies 3 For one day or under continuing contract 22,106 23,303 20,539 20,888 19,101 18,627 17,682 19,802 19,687 4 For all other maturities 22,378 22,340 22,694 21,929 21,560 20,982 20,222 20,034 19,472 Repurchase agreements on U.S. government and federal agency securities Brokers and nonbank dealers in securities 5 For one day or under continuing contract 10,897 11,445 12,301 9,491 8,377 10,185 11,519 13,694 13,894 6 For all other maturities 14,426 14,170 14,650 13,576 13,749 13,665 14,788 14,245 13,883 All other customers 7 For one day or under continuing contract 22,097 24,693 24,885 24,854 24,044 24,651 24,119 24,339 24,920 8 For all other maturities 14,273 10,903 11,212 11,985 12,635 12,024 12,278 12,117 12,182 MEMO: Federal funds loans and resale agreements in immediately available funds in maturities of one day or under continuing contract 9 To commercial banks in the United States 47,024 43,906 41,804 44,346 44,055 48,302 49,370 55,914 53,588 10 To all other specified customers2 17,224 18,692 21,816 22,708 18,991 22,323 21,664 25,656 22,461 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 • May 1992 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Adjustment credit1 Seasonal credit2 Extended credit3 FFeeddeerraall RReesseerrvvee BBaannkk On On On 3/27/92 Effective date Previous rate 3/27/92 Effective date Previous rate 3/27/92 Effective date Previous rate Boston 3.5 12/20/91 4.5 4.15 3/19/92 4.10 4.65 3/19/92 4.60 New York 12/20/91 3/19/92 3/19/92 Philadelphia 12/20/91 3/19/92 3/19/92 Cleveland 12/20/91 3/19/92 3/19/92 Richmond 12/20/91 3/19/92 3/19/92 Atlanta 12/20/91 3/19/92 3/19/92 Chicago 12/20/91 3/19/92 3/19/92 St. Louis 12/24/91 3/19/92 3/19/92 Minneapolis 12/23/91 3/19/92 3/19/92 Kansas City 12/20/91 3/19/92 3/19/92 Dallas 12/20/91 3/19/92 3/19/92 San Francisco ... 3.5 12/20/91 4.5 4.15 3/19/92 4.10 4.65 3/19/92 4.60 Range of rates for adjustment credit in recent years4 Range (or F.R. Range (or F.R. Range (or F.R. level)— Bank level)— Bank level)— Bank Effective date All F.R. of Effective date All F.R. of Effective date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1977. 1981—May 5 13-14 14 1986—Mar. 7 7-7.5 7 8 14 14 10 7 7 1978—Jan. 9 6-6.5 6.5 Nov. 2 13-14 13 Apr. 21 6.5-7 6.5 20 6.5 6.5 6 13 13 July 11 6 6 May 11 6.5-7 7 Dec. 4 12 12 Aug. 21 5.5-6 5.5 12 7 7 22 5.5 5.5 July 3 7-7.25 7.25 1982—July 20 11.5-12 11.5 10 7.25 7.25 23 11.5 11.5 1987—Sept. 4 5.5-6 6 Aug. 21 7.75 7.75 Aug. 2 11-11.5 11 11 6 6 Sept. 22 8 8 3 11 11 Oct. 16 8-8.5 8.5 16 10.5 10.5 1988—Aug. 9 6-6.5 6.5 20 8.5 8.5 27 10-10.5 10 11 6.5 6.5 Nov. 1 8.5-9.5 9.5 30 10 10 3 9.5 9.5 Oct. 12 9.5-10 9.5 1989—Feb. 24 6.5-7 7 13 9.5 9.5 27 7 7 1979—July 20 10 10 Nov. 22 9-9.5 9 Aug. 17 10-10.5 10.5 26 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—Apr. 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. 21 8.5-9 8.5 Sept. 17 5 5 19 13 13 26 8.5 8.5 Nov. 6 4.5-5 4.5 May 29 12-13 13 Dec. 24 8 8 7 4.5 4.5 30 12 12 Dec. 20 3.5-4.5 3.5 June 13 11-12 11 1985—May 20 7.5-8 7.5 24 3.5 3.5 16 11 11 24 7.5 7.5 29 10 10 In effect Mar. 27, 1992 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 ordinarily is charged on extended-credit loans outstanding less than thirty days; institutions meet temporary needs for funds that cannot be met through reason- however, at the discretion of the Federal Reserve Bank, this time period may be able alternative sources. The highest rate established for loans to depository shortened. Beyond this initial period, a flexible rate somewhat above rates on institutions may be charged on adjustment-credit loans of unusual size that result market sources of funds is charged. The rate ordinarily is reestablished on the first from a major operating problem at the borrower's facility. business day of each two-week reserve maintenance period, but it is never less 2. Seasonal credit is available to help relatively small depository institutions than the discount rate applicable to adjustment credit plus 50 basis points. meet regular seasonal needs for funds that arise from a clear pattern of intra- 4. For earlier data, see the following publications of the Board of Governors: yearly movements in their deposits and loans and that cannot be met through Banking and Monetary Statistics, 1914-1941, and 1941-1970; and the Annual special industry lenders. Hie discount rate on seasonal credit takes into account Statistical Digest, 1970-1979. rates on market sources of funds and ordinarily is reestablished on the first In 1980 and 1981, the Federal Reserve applied a surcharge to short-term business day of each two-week reserve maintenance period; however, it is never adjustment-credit borrowings by institutions with deposits of $500 million or more less than the discount rate applicable to adjustment credit. that had borrowed in successive weeks or in more than four weeks in a calendar 3. Extended credit may be made available to depository institutions when quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7, similar assistance is not reasonably available from other sources, including special 1980. A surcharge of 2 percent was reimposed on Nov. 17, 1980; the surcharge industry lenders. Such credit may be provided when exceptional circumstances was subsequently raised to 3 percent on Dec. 5, 1980, and to 4 percent on May 5, (including sustained deposit drains, impaired access to money market funds, or 1981. The surcharge was reduced to 3 percent effective Sept. 22, 1981, and to 2 sudden deterioration in loan repayment performance) or practices involve only a percent effective Oct. 12, 1981. As of Oct. 1, 1981, the formula for applying the particular institution, or to meet the needs of institutions experiencing difficulties surcharge was changed from a calendar quarter to a moving thirteen week period. adjusting to changing market conditions over a longer period (particularly at times The surcharge was eliminated on Nov. 17, 1981. of deposit disintermediation). The discount rate applicable to adjustment credit 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 million4.. 4/2/91 3 Nonpersonal time deposits' 12/27/90 4 Eurocurrency liabilities6 .. 12/27/90 1. Required reserves must be held in the form of deposits with Federal Reserve to the rules that permit no more than six preauthorized, automatic, or other Banks or vault cash. Nonmember institutions may maintain reserve balances with transfers per month, of which no more than three may be checks, are not a Federal Reserve Bank indirectly on a pass-through basis with certain approved transaction accounts (such accounts are savings deposits). institutions. For previous reserve requirements, see earlier editions of the Annual The Monetary Control Act of 1980 requires that the amount of transaction Report or the Federal Reserve Bulletin. Under provisions of the Monetary accounts against which the 3 percent reserve requirement applies be modified Control Act, depository institutions include commercial banks, mutual savings annually by 80 percent of the percentage change in transaction accounts held by banks, savings and loan associations, credit unions, agencies and branches of all depository institutions, determined as of June 30 each year. Effective Dec. 17, foreign banks, and Edge corporations. 1991, for institutions reporting quarterly, and Dec. 24, 1991, for institutions 2. The Garn-St Germain Depository Institutions Act of 1982 (Public Law reporting weekly, the amount was increased from $41.1 million to $42.2 million. 97-320) requires that $2 million of reservable liabilities of each depository 4. The reserve requirement was reduced from 12 percent to 10 percent on Apr. institution be subject to a zero percent reserve requirement. The Board is to adjust 2, 1992, for institutions that report weekly, and on Apr. 16, 1992, for institutions the amount of reservable liabilities subject to this zero percent reserve require- that report quarterly. ment each year for the succeeding calendar year by 80 percent of the percentage 5. For institutions that report weekly, the reserve requirement on nonpersonal increase in the total reservable liabilities of all depository institutions, measured time deposits with an original maturity of less than 1 Vi years was reduced from 3 on an annual basis as of June 30. No corresponding adjustment is to be made in percent to IV2 percent for the maintenance period that began Dec. 13, 1990, and the event of a decrease. On Dec. 17, 1991, the exemption was raised from $3.4 to zero for the maintenance period that began Dec. 27, 1990. The reserve million to $3.6 million. The exemption applies in the following order: (1) net requirement on nonpersonal time deposits with an original maturity of 1 Vi years negotiable order of withdrawal (NOW) accounts (NOW accounts less allowable or more has been zero since Oct. 6, 1983. deductions); and (2) net other transaction accounts. The exemption applies only to For institutions that report quarterly, the reserve requirement on nonpersonal accounts that would be subject to a 3 percent reserve requirement. time deposits with an original maturity of less than 1 Vi years was reduced from 3 3. Transaction accounts include all deposits against which the account holder is percent to zero on Jan. 17, 1991. permitted to make withdrawals by negotiable or transferable instruments, pay- 6. The reserve requirement on Eurocurrency liabilities was reduced from 3 ment orders of withdrawal, and telephone and preauthorized transfers in excess of percent to zero in the same manner and on the same dates as were the reserve three per month for the purpose of making payments to third persons or others. requirement on nonpersonal time deposits with an original maturity of less than However, money market deposit accounts (MMDAs) and similar accounts subject IVi years (see note 4). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic NonfinancialS tatistics • May 1992 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars 1991 1992 TTyyppee ooff ttrraannssaaccttiioonn 11998899 11999900 11999911 July Aug. Sept. Oct. Nov. Dec. Jan. U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 14,284 24,739 20,158 1,359 5,776 529 2,198 2,823 837 0 2 Gross sales 12,818 7,291 120 0 0 0 0 0 0 1,628 3 Exchanges 231,211 241,086 277,314 25,180 28,009 19,508 25,409 24,141 21,967 26,750 4 Redemptions 12,730 4,400 1,000 0 0 0 0 0 0 1,600 Others within one year 5 Gross purchases 327 425 3,043 625 340 200 0 178 0 0 6 Gross sales 0 0 0 0 0 0 0 0 0 0 7 Maturity shifts 28,848 25,638 24,454 1,478 3,425 1,131 2,002 1,655 1,570 0 8 Exchanges -25,783 -27,424 -28,090 -3,136 -2,443 -2,202 -2,034 -2,585 -3,562 0 9 Redemptions 500 0 1,000 0 0 0 0 0 0 0 One to five years 10 Gross purchases 1,436 250 6,583 0 0 650 0 2,133 300 0 11 Gross sales 490 200 0 0 0 0 0 0 0 0 12 Maturity shifts -25,534 -21,770 -21,211 -1,192 -3,425 -1,131 -1,877 -1,492 -1,570 0 13 Exchanges 23,250 25,410 24,594 2,601 1,993 2,202 1,686 2,135 3,562 0 Five to ten years 14 Gross purchases 287 0 1,280 0 0 0 0 880 0 0 15 Gross sales 29 100 0 0 0 0 0 0 0 0 16 Maturity shifts -2,231 -2,186 -2,037 -286 688 0 -126 -163 0 0 17 Exchanges 1,934 789 2,894 534 300 0 347 300 0 0 More than ten years 18 Gross purchases 284 0 375 0 0 0 0 375 0 0 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shifts -1,086 -1,681 -1,209 0 -688 0 0 0 0 0 21 Exchanges 600 1,226 600 0 150 0 0 150 0 0 All maturities 22 Gross purchases 16,617 25,414 31,439 1,984 6,116 1,379 2,198 6,390 1,137 0 23 Gross sales 13,337 7,591 120 0 0 0 0 0 0 1,628 24 Redemptions 13,230 4,400 1,000 0 0 0 0 0 0 1,600 Matched transactions 25 Gross sales 1,323,480 1,369,052 1,570,456 120,292 112,414 116,266 137,073 98,063 118,127 136,922 26 Gross purchases 1,326,542 1,363,434 1,571,534 121,803 110,280 118,481 135,281 97,925 118,263 136,282 Repurchase agreements2 27 Gross purchases 129,518 219,632 310,084 35,149 16,847 40,447 12,432 14,165 51,345 21,412 28 Gross sales 132,688 202,551 311,752 36,111 16,847 40,447 3,718 22,879 36,000 33,228 29 Net change in U.S. government securities -10,055 24,886 29,729 2,532 3,981 3,595 9,121 -2,462 16,619 -15,684 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 0 0 0 0 0 0 0 0 0 0 31 Gross sales 0 0 5 0 0 5 0 0 0 0 32 Redemptions 442 183 292 55 0 0 14 51 45 85 Repurchase agreements2 33 Gross purchases 38,835 41,836 22,807 3,245 537 3,061 714 275 1,744 390 34 Gross sales 40,411 40,461 23,595 3,722 537 3,061 695 294 1,191 808 35 Net change in federal agency obligations -2,018 1,192 -1,085 -532 0 -5 5 -70 508 -503 36 Total net change in System Open Market Account -12,073 26,078 28,644 2,000 3,981 3,590 9,126 -2,532 17,127 -16,186 1. Sales, redemptions, and negative figures reduce holdings of the System Open 2. In July 1984 the Open Market Trading Desk discontinued accepting bankers Market Account; all other figures increase such holdings. Details may not sum to acceptances in repurchase agreements, totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Banks All 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month Account 1992 1991 Jan. 29 Feb. 5 Feb. 12 Feb. 19 Feb. 26 Dec. 31 Jan. 31 Feb. 28 Consolidated condition statement ASSETS 1 Gold certificate account 11,058 11,058 11,058 11,058 11,058 11,059 11,058 11,058 2 Special drawing rights certificate account 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 3 Coin 600 627 633 636 629 528 614 632 Loans 4 To depository institutions 119 503 55 79 60 218 112 62 5 Other 0 0 0 0 0 0 0 0 6 Acceptances held under repurchase agreements , 0 0 0 0 0 0 0 0 Federal agency obligations 7 Bought outright 5,960 5,960 5,960 5,960 5,960 6,045 5,960 5,960 8 Held under repurchase agreements 0 0 0 522 0 553 135 9 Total U.S. Treasury securities. 261,957 260,459 262,670 273,630 264,912 281,831 266,148 265,423 10 Bought outright2 261,957 260,459 262,670 264,161 264,912 266,486 262,619 265,423 11 Bills 128,106 126,608 128,819 129,915 130,033 132,635 128,767 130,544 12 Notes 101,520 101,520 101,520 102,203 102,835 101,520 101,520 102,835 13 Bonds 32,331 32,331 32,331 32,043 32,043 32,332 32,332 32,043 14 Held under repurchase agreements 0 0 0 9,469 0 15,345 3,529 0 15 Total loans and securities 268,036 266,922 268,685 280,191 270,932 288,647 272,354 271,444 16 Items in process of collection 5,190 6,843 6,294 12,831 4,979 8,286 5,034 5,155 17 Bank premises 991 994 995 998 998 987 994 1,001 Other assets 18 Denominated in foreign currencies 27,771 26,928 26,953 26,984 27,067 27,626 26,928 25,999 19 All other4 5,906 6,031 6,152 5,035 4,860 5,911 6,130 5,041 20 Total assets 329,571 329,421 330,788 347,751 330,541 353,061 333,129 330,347 LIABILITIES 21 Federal Reserve notes 280,422 280,819 282,468 283,245 281,969 287,906 280,117 281,605 22 Total deposits 36,254 35,174 35,518 48,225 35,947 49,783 40,595 36,659 23 Depository institutions 26,432 27,324 29,210 41,402 30,381 29,413 29,195 30,688 24 U.S. Treasury—General account 9,048 7,400 5,834 6,407 5,103 17,697 10,828 5,477 25 Foreign—Official accounts 554 196 224 209 207 968 321 264 26 Other 219 254 250 208 256 1,706 252 231 27 Deferred credit items 4,575 5,951 4,972 8,112 4,505 7,259 4,788 4,860 28 Other liabilities and accrued dividends5 2,594 2,359 2,326 2,484 2,369 2,810 2,558 2,317 29 Total liabilities. 323,845 324,304 325,284 342,066 324,790 347,758 328,058 325,441 CAPITAL ACCOUNTS 30 Capital paid in 2,678 2,683 2,702 2,704 2,732 2,652 2,683 2,734 31 Surplus 2,652 2,417 2,596 2,630 2,647 2,652 2,383 2,171 32 Other capital accounts. 396 18 207 351 372 0 6 0 33 Total liabilities and capital accounts 329,571 329,421 330,788 347,751 330,541 353,061 333,129 330,347 34 MEMO: Marketable U.S. Treasury securities held in custody for foreign and international accounts . 258,793 260,415 262,981 266,834 265,009 251,209 266,801 268,036 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to Bank) 364,259 363,878 362,966 362,191 362,562 366,468 364,621 363,222 36 LESS: Held by Federal Reserve Bank 83,837 83,059 80,498 78,946 80,593 78,562 84,504 81,617 37 Federal Reserve notes, net 280,422 280,819 282,468 283,245 281,969 287,906 280,117 281,605 Collateral held against notes, net: 38 Gold certificate account 11,058 11,058 11,058 11,058 11,058 11,059 11,058 11,058 39 Special drawing rights certificate account. 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 40 Other eligible assets 0 0 0 0 0 0 0 0 41 U.S. Treasury and agency securities 259,346 259,743 261,392 262,169 260,893 266,829 259,041 260,529 42 Total collateral. 280,422 280,819 282,468 283,245 281,969 287,906 280,117 281,605 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 NonfinancialS tatistics • May 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 1992 1991 1992 Jan. 29 Feb. 5 Feb. 12 Feb. 19 Feb. 26 Dec. 31 Jan. 31 Feb. 28 1 Total loans 119 503 55 79 60 218 112 62 2 Within fifteen days 119 499 50 79 60 217 112 58 3 Sixteen days to ninety days 0 5 5 0 11 2 0 4 4 Ninety-one days to one year 0 0 0 0 00 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 261,957 260,459 262,670 273,630 264,912 281,831 262,619 265,423 10 Within fifteen days2 11,678 12,021 14,142 20,615 13,395 21,109 8,864 8,559 11 Sixteen days to ninety days 60,009 59,286 62,318 65,844 63,618 66,759 64,603 69,052 12 Ninety-one days to one year 86,831 86,028 83,085 86,616 86,713 90,655 86,028 87,851 n One year to five years 64,104 63,788 63,788 60,768 61,400 64,299 63,788 60,175 14 Five years to ten years 14,796 14,7% 14,7% 15,192 15,192 14,469 14,7% 15,192 15 More than ten years 24,540 24,540 24,540 24,594 24,594 24,540 24,540 24,594 16 Total Federal agency obligations 5,960 5,960 5,960 6,481 5,960 6,597 5,960 5,960 17 Within fifteen days2 108 0 112 916 403 753 108 403 18 Sixteen days to ninety days 867 972 860 577 502 811 867 502 19 Ninety-one days to one year 1,343 1,346 1,421 1,421 1,411 1,329 1,343 1,411 20 One year to five years 2,647 2,684 2,609 2,609 2,726 2,508 2,647 2,726 21 Five years to ten years 841 804 804 804 764 1,008 841 764 22 More than ten years 154 154 154 154 154 188 154 154 1. Components may not sum to totals because of rounding. fifteen days in accordance with the maximum possible maturity of the agreements. 2. Holdings under repurchase agreements are classified as maturing within Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary and Credit Aggregates A13 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1991 1992 11998888 11998899 11999900 11999911 IItteemm DDeecc.. DDeecc.. DDeecc.. DDeecc.. July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Seasonally adjusted AADDJJUUSSTTEEDD FFOORR CCHHAANNGGEESS IINN RREESSEERRVVEE RREEQQUUIIRREEMMEENNTTSS22 11 TToottaall rreesseerrvveess33 47.60 47.73 49.10 53.75 50.41 50.89 51.15 51.82 52.69 53.75 54.37 56.42 22 NNoonnbboorrrroowweedd rreesseerrvveess44 .. 45.88 47.46 48.78 53.56 49.80 50.12 50.50 51.56 52.59 53.56 54.13 56.34 33 NNoonnbboorrrroowweedd rreesseerrvveess pplluuss eexxtteennddeedd ccrreeddiitt 47.12 47.48 48.80 53.56 49.85 50.42 50.80 51.57 52.59 53.56 54.13 56.34 44 RReeqquuiirreedd rreesseerrvveess 46.55 46.81 47.44 52.77 49.50 49.80 50.22 50.73 51.80 52.77 53.36 55.35 55 MMoonneettaarryy bbaassee 263.77 274.57 300.35 325.22 314.22 316.68 318.50 320.93 323.13 325.22 327.68r 332.16 Not seasonally adjusted 6 Total reserves 49.00 49.18 50.58 55.38 50.56 50.49 50.99 51.43 52.89 55.38 55.79 55.17 7 Nonborrowed reserves 47.29 48.91 50.25 55.18 49.95 49.73 50.35 51.17 52.78 55.18 55.56 55.10 8 Nonborrowed reserves plus extended credit 48.53 48.93 50.28 55.19 50.00 50.03 50.65 51.18 52.78 55.19 55.56 55.10 9 Required reserves 47.96 48.26 48.91 54.40 49.65 49.41 50.07 50.35 51.99 54.40 54.79 54.11 10 Monetary base 267.46 278.30 304.04 329.35 316.14 316.68 317.28 319.14 323.06 329.35 328.75r 328.59 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS10 11 Total reserves" 63.75 62.81 59.12 55.53 50.66 50.61 51.13 51.58 53.06 55.53 55.81 55.24 12 Nonborrowed reserves 62.03 62.54 58.79 55.34 50.05 49.84 50.48 51.32 52.95 55.34 55.58 55.16 N Nonborrowed reserves plus extended credit 63.27 62.56 58.82 55.34 50.10 50.14 50.78 51.33 52.95 55.34 55.58 55.16 14 Required reserves 62.70 61.89 57.46 54.55 49.75 49.52 50.20 50.50 52.16 54.55 54.81 54.17 15 Monetary base12 283.00 292.55 313.70 333.61 319.46 320.07 320.70 322.71 326.88 333.61 SSB.O^ 333.20 16 Excess reserves 1.05 .92 1.66 .98 .91 1.09 .93 1.08 .89 .98 1.00 1.07 17 Borrowings from the Federal Reserve 1.72 .27 .33 .19 .61 .76 .65 .26 .11 .19 .23 .08 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 • May 1992 1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1 Billions of dollars, averages of daily figures 1991 1992 1988 1989 1990 1991 Dec. Dec. Dec. Dec." Nov. Dec." Jan" Feb. Seasonally adjusted Measures2 1 Ml 786.9 794.1 826.1 898.2 891.4 898.2 910.3 930.8 2 M2 3,071.1 3,227.3 3,339.0" 3,439.3 3,431.1" 3,439.3 3,448.5 3,475.6 3 M3 3,923.1 4,059.8 4,114.6" 4,172.2 4,167.5" 4,172.2 4,177.1 4,201.5 4 L 4,677.9 4,891.7r 4,966.6" 4,989.2 4,990.8" 4,989.2 4,984.9 n.a. 5 Debt 9,312.6r 10,059.6r 10,749.9" 11,216.2 11,187.9" 11,216.2 11,238.7 n.a. Ml components 6 Currency3 212.3 222.6 246.8 267.3 266.0 267.3 269.4 271.6 7 Travelers checks 7.5 7.4 8.3 8.2 8.0 8.2 8.2 8.1 8 Demand deposits5 286.5 279.0 277.1 289.5 287.6 289.5 293.9 305.1 9 Other checkable deposits6 280.6 285.1 293.9 333.2 329.7 333.2 338.9 346.0 Nontrgnsaction components 10 In M2 2,284.2 2,433.2 22,,551122..99"" 2,541.1 2,539.7" 2,541.1 2,538.1 2,544.8 11 In M38 852.0 832.5 775.6" 732.9 736.4 732.9 728.6 725.9 Commercial banks 12 Savings deposits, including MMDAs 542.7 541.4 581.9 664.9 655.4 664.9 676.0 688.9 13 Small time deposits9. 447.0 531.0 606.4" 598.5 606.4 598.5 587.7 575.8 14 Large time deposits10- 11 366.9 398.2 374.0" 354.0 357.1 354.0 346.4 342.8 Thrift institutions 15 Savings deposits, including MMDAs 383.5 349.7 338.8 377.7 373.3 377.7 385.3 395.3 16 Small time deposits9. 585.9 617.5 562.3 464.5 472.8" 464.5 455.0 443.2 17 Large time deposits 174.3 161.1 120.9 83.1 85.1 83.1 81.4 79.0 Money market mutual funds 18 General purpose and broker-dealer 241.9 316.3 348.9 360.5 359.5" 360.5 360.0 363.7 19 Institution-only 91.0 107.2 133.7 179.1 173.6 179.1 182.4 188.2 Debt components 20 Federal debt 2,101.5 2,249.8r 2,493.6 2,766.0 2,748.3" 2,766.0 2,779.7 n.a. 21 Nonfederal debt 7,211.r 7,809.7r 8,256.3" 8,450.3 8,439.6" 8,450.3 8,459.1 n.a. Not seasonally adjusted Measures2 22 Ml 804.1 811.9 844.1 917.3 893.9 917.3 918.1 916.6 23 M2 3,083.8 3,240.0 3,351.9" 3,453.1 3,434.3" 3,453.1 3,456.4 3,462.8 24 M3 3,934.7 4,070.3 4,124.7" 4,182.9 4,169.7" 4,182.9 4,182.2 4,191.0 25 L 4,695.0 4,911.0" 4,986.4" 5,009.4 4,998.2" 5,009.4 5,003.0 n.a. 26 Debt 9,298.0" 10,045.r 10,737.2" 11,203.6 11,157.5" 11,203.6 11,226.7 n.a. Ml components 27 Currency 214.8 225.3 249.5 270.0 266.3 270.0 267.8 269.5 28 Travelers checks 6.9 6.9 7.8 7.7 7.7 7.7 7.8 7.8 29 Demand deposits 298.9 291.5 289.9 303.1 291.1 303.1 300.0 296.3 30 Other checkable deposits6 283.5 288.1 296.9 336.5 328.8 336.5 342.4 342.9 Nontrgnsaction components 31 In M2 2,279.7 2,428.1 2,507.8" 2,535.8 2,540.4" 2,535.8 2,538.3 2,546.2 32 In M38 850.8 830.3 772.8" 729.8 735.4" 729.8 725.8 728.2 Commercial banks 33 Savings deposits, including MMDAs 543.8 543.0 580.0 662.4 655.3 662.4 672.3 685.2 34 Small time deposits . 446.0 529.5 606.3" 598.7 606.9 598.7 589.5 577.3 35 Large time deposits' • 365.9 397.1 373.0" 352.8 356.9 352.8 344.0 341.8 Thrift institutions 36 Savings deposits, irrcluding MMDAs 381.1 347.6 337.7 376.3 373.2 376.3 383.2 393.2 37 Small time deposits9 584.9 616.0 562.2 464.6 473.2" 464.6 456.4 444.3 38 Large time deposits10 175.2 162.0 120.6 82.8 85.1 82.8 80.8 78.8 Money market mutual funds 39 General purpose and broker-dealer 240.8 314.6 346.8 358.1 358.6" 358.1 359.5 368.8 40 Institution-only 91.4 107.8 134.4 180.3 172.7 180.3 188.1 196.9 Repurchase agreements and eurodollars 41 Overnight 83.2 77.5 74.7 75.7 73.3 75.7 77.4 77.5 42 Term 227.4 178.5 158.3 129.5 136.0 129.5 128.2 129.8 Debt components 43 Federal debt 22,,009988..99"" 2,247.5 2,491.3 2,764.9 2,740.7 2,764.9 2,782.0 n.a. 44 Nonfederal debt 7,199.0r 7,797.7r 8,245.8" 8,438.7 8,416.8" 8,438.7 8,444.7 n.a. For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary and Credit Aggregates A15 NOTES TO TABLE 1.21 1. Latest monthly and weekly figures are available from the Board's H.6 (508) Treasury securities, commercial paper, and bankers acceptances, net of money weekly statistical release. Historical data are available from the Money and market fund holdings of these assets. Seasonally adjusted L is computed by Reserves Projection Section, Division of Monetary Affairs, Board of Governors of summing U.S. savings bonds, short-term Treasury securities, commercial paper, the Federal Reserve System, Washington, D.C. 20551. and bankers acceptances, each seasonally adjusted separately, and then adding 2. Composition of the money stock measures and debt is as follows: this result to M3. Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults Debt: Debt of domestic nonfinancial sectors consists of outstanding credit of depository institutions; (2) travelers checks of nonbank issuers; (3) demand market debt of the U.S. government, state and local governments, and private deposits at all commercial banks other than those due to depository institutions, nonfinancial sectors. Private debt consists of corporate bonds, mortgages, conthe U.S. government, and foreign banks and official institutions, less cash items in sumer credit (including bank loans), other bank loans, commercial paper, bankers the process of collection and Federal Reserve float; and (4), other checkable acceptances, and other debt instruments. Data are derived from the Federal deposits (OCDs), consisting of negotiable order of withdrawal (NOW) and Reserve Board's flow of funds accounts. Debt data are based on monthly automatic transfer service (ATS) accounts at depository institutions, credit union averages. This sum is seasonally adjusted as a whole. share draft accounts, and demand deposits at thrift institutions. Seasonally 3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of adjusted Ml is computed by summing currency, travelers checks, demand depository institutions. deposits, and OCDs, each seasonally adjusted separately. 4. Outstanding amount of U.S. dollar-denominated travelers checks of non- M2: Ml plus (1) overnight (and continuing-contract) repurchase agreements bank issuers. Travelers checks issued by depository institutions are included in (RPs) issued by all depository institutions and overnight Eurodollars issued to demand deposits. U.S. residents by foreign branches of U.S. banks worldwide, (2) money market 5. Demand deposits at commercial banks and foreign-related institutions other deposit accounts (MMDAs), (3) savings and small time deposits (time deposits— than those due to depository institutions, the U.S. government, and foreign banks including retail RPs—in amounts of less than $100,000), and (4) balances in both and official institutions, less cash items in the process of collection and Federal taxable and tax-exempt general purpose and broker-dealer money market funds. Reserve float. Excludes individual retirement accounts (IRAs) and Keogh balances at depository 6. Consists of NOW and ATS account balances at all depository institutions, institutions and money market funds. Also excludes all balances held by U.S. credit union share draft account balances, and demand deposits at thrift institucommercial banks, money market funds (general purpose and broker-dealer), tions. foreign governments and commercial banks, and the U.S. government. Season- 7. Sum of (1) overnight RPs and overnight Eurodollars, (2) money market fund ally adjusted M2 is computed by adjusting its non-Mi component as a whole and balances (general purpose and broker-dealer), (3) MMDAs, and (4) savings and then adding this result to seasonally adjusted Ml. small time deposits. M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of 8. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U.S. $100,000 or more) issued by all depository institutions, (2) term Eurodollars held residents, and (4) money market fund balances (institution-only) ,less a consoliby U.S. residents at foreign branches of U.S. banks worldwide and at all banking dation adjustment that represents the estimated amount of overnight RPs and offices in the United Kingdom and Canada, and (3) balances in both taxable and Eurodollars held by institution-only money market funds. tax-exempt, institution-only money market funds. Excludes amounts held by 9. Small time deposits—including retail RPs—are those issued in amounts of depository institutions, the U.S. government, money market funds, and foreign less than $100,000. AH IRAs and Keogh accounts at commercial banks and thrift banks and official institutions. Also excluded is the estimated amount of overnight institutions are subtracted from small time deposits. RPs and Eurodollars held by institution-only money market funds. Seasonally 10. Large time deposits are those issued in amounts of $100,000 or more, adjusted M3 is computed by adjusting its non-M2 component as a whole and then excluding those booked at international banking facilities. adding this result to seasonally adjusted M2. 11. Large time deposits at commercial banks less those held by money market L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term funds, depository institutions, and foreign banks and official institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics • May 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 July Aug. Sept. Oct. Nov. Dec. DEBITS TO Seasonally adjusted Demand deposits3 1 All insured banks 256,150.4 277,916.3 283,658.8 284,872.2 275,915.9 283,521.6 290,074.6 280,263.3 302,794.0 2 Major New York City banks 129,319.9 131,784.0 141,464.4 139,089.0 136,906.9 142,138.4 144,208.2 140,754.1 156,162.4 3 Other banks 126,830.5 146,132.3 142,194.3 145,783.2 139,009.0 141,383.2 145,866.4 139,509.2 146,631.6 4 ATS-NOW accounts4 2,910.5 3,349.6 3,630.2 3,822.8 3,659.4 3,679.1 3,759.9 3,553.7 3,853.5 5 Savings deposits 547.5 558.8 1,378.9 552.6 516.7 2,904.0 2,733.0 3,233.1 3,313.7 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 735.1 800.6 825.0 833.4 798.0 823.9 843.2 793.0 864.5 7 Major New York City banks 3,421.5 3,804.1 4,408.9 4,413.3 4,448.0 4,490.7 4,606.2 4,211.8 4,871.8 8 Other banks 408.3 467.7 456.2 469.8 441.4 452.5 466.4 435.9 460.8 9 ATS-NOW accounts4 15.2 16.5 16.1 16.9 15.9 15.7 15.9 14.8 15.9 10 Savings deposits 3.0 2.9 3.3 2.5 2.3 4.7 4.4 5.0 5.1 DEBITS TO Not seasonally adjusted Demand deposits3 11 All insured banks 256,133.2 277,400.0 283,545.2 286,068.7 289,049.5 273,967.0 298,196.7 269,949.6 310,727.2 12 Major New York City banks 129,400.1 131,784.7 141,132.6 139,527.4 146,342.8 137,659.5 149,704.6 136,592.8 160,297.8 13 Other banks 126,733.0 145,615.3 142,412.5 146,541.3 142,706.6 136,307.5 148,492.0 133,356.8 150,429.4 14 ATS-NOW accounts4 2,910.7 3,342.2 3,628.1 3,729.0 3,693.2 3,679.4 3,770.6 3,314.0 3,909.0 15 MMDAs6 2,677.1 2,923.8 n.a 2,868.0 2,751.7 n.a n.a n.a n.a 16 Savings deposits 546.9 557.9 1,409.8 558.2 537.0 3,110.7 3,132.6 2,939.5 3,348.9 DEPOSIT TURNOVER Demand deposits3 17 All insured banks 735.4 799.6 824.8 831.4 849.5 796.0 864.8 757.1 845.9 18 Major New York City banks 3,426.2 3,810.0 4,386.1 4,334.6 4,771.4 4,305.8 4,775.5 4,059.4 4,654.0 19 Other banks 408.0 466.3 457.2 469.8 460.9 436.6 473.7 413.0 451.9 20 ATS-NOW accounts4 15.2 16.4 16.1 16.7 16.3 15.9 16.2 13.9 15.9 21 MMDAs6 7.9 8.0 n.a 7.2 6.8 n.a n.a n.a n.a 22 Savings deposits 2.9 2.9 3.4 2.5 2.4 4.9 4.9 4.5 5.1 1. Historical tables containing revised data for earlier periods can b eobtained 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 ATS and NOW accounts. release. For ordering address, see inside front cover. 6. Money market deposit accounts. 2. Annual averages of monthly figures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions A17 1.23 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars, averages of Wednesday figures 1991 1992 IItteemm Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Seasonally adjusted 1 Total loans and securities2 2,759.9 2,763.9 2,765.7 2,774.6 2,776.4 2,778.3 2,789.4 2,805.1 2,821.6 2,836.0 2,843.5 2,844.6 ? U.S. government securities 470.8 478.2 484.1 493.9 503.7 513.2 523.4 538.4 550.5 562.5 564.2 568.7 3 Other securities 178.5 177.5 176.9 176.2 175.3 174.0 175.8 177.1 177.6 178.5 179.0 179.1 4 Total loans and leases2 2,110.6 2,108.3 2,104.8 2,104.6 2,097.4 2,091.1 2,090.2 2,089.6 2,093.4 2,095.0 2,100.2 2,096.7 5 Commercial and industrial ..... 638.7 635.1 630.6 626.0 623.6 619.4 622.0 622.6 621.0 617.6 614.5 608.9 6 Bankers acceptances held ... 8.7 8.7 8.2 7.7 7.5 7.8 7.4 7.0 7.6 7.9 7.3 7.6 7 Other commercial and industrial 630.0 626.5 622.4 618.3 616.1 611.6 614.6 615.6 613.4 609.7 607.2 660011..33 8 U.S. addressees , 623.9 620.6 616.6 612.6 610.3 605.7 608.5 608.9 606.8 602.9 601.1 595.0 9 Non-U.S. addressees4 6.1 5.8 5.9 5.7 5.7 5.9 6.1 6.7 6.6 6.8 6.1 6.3 10 Real estate 857.7 861.5 863.8 868.6 867.7 866.9 867.9 869.0 870.6 871.1 870.7 875.5 11 Individual 375.2 374.3 373.6 372.9 371.0 370.3 367.2 364.4 363.2 363.9 363.9 364.2 12 Security 48.2 48.5 49.1 49.0 47.4 48.4 50.0 51.2r 53.6 54.6 59.1 56.9 n Nonbank financial institutions 36.9 36.0 36.5 39.3 38.8 37.7 37.6 38.1 39.2 40.6 40.3 4422..11 14 Agricultural 33.0 33.6 33.7 33.9 34.0 34.2 34.3 34.1 33.9 34.1 33.7 33.7 15 State and political subdivisions 32.8 32.3 31.7 31.3 30.9 30.5 30.1 29.7 29.4 2299..22 2288..33 2288..44 16 Foreign banks 7.5 7.1 6.6 6.5 6.6 6.6 6.9 6.6 6.8 7.2 7.1 6.6 17 Foreign official institutions 2.8 2.5 2.4 2.5 2.4 2.3 2.3 2.4 2.6 2.5 2.4 2.3 18 Lease-financing receivables 33.1 33.1 33.0 33.2 32.4 31.7 31.7 31.5 31.3 • 31.4 31.3 31.3 19 All other loans 44.7 44.2 43.6 41.5 42.8 43.1 40.2 40.0r 41.8 42.9 49.0 46.9 Not seasonally adjusted 20 Total loans and securities2 2,759.0 2,762.7 2,761.6 2,775.7 2,769.6 2,775.4 2,789.5 2,807.8 2,826.9 2,842.4 2,840.3 2,847.2 21 U.S. government securities 474.9 479.9 484.0 493.1 501.5 511.7 521.9 537.3 551.5 558.5 563.8 572.7 71 Other securities 178.5 177.0 176.5 176.2 174.3 174.2 175.8 177.4 177.9 178.7 179.5 179.2 73 Total loans and leases2 2,105.5 2,105.7 2,101.0 2,106.5 2,093.8 2,089.5 2,091.8 2,093.1 2,097.6 2,105.2 2,096.9 2,095.4 7.4 Commercial and industrial ..... 641.3 638.3 633.4 628.0 623.5 617.6 619.1 621.1 619.7 618.9 611.4 608.1 25 Bankers acceptances held ... 8.7 8.4 8.2 7.7 7.2 7.6 7.4 7.0 7.9 8.2 7.4 7.8 26 Other commercial and 632.6 629.9 625.2 620.3 616.3 609.9 611.8 614.1 611.9 661100..77 660044..00 660000..44 77 U.S. addressees 626.4 623.8 619.3 614.3 610.5 604.1 605.8 607.9 605.7 604.3 597.5 593.7 78 Non-U.S. addressees 6.2 6.0 5.9 6.0 5.7 5.8 6.0 6.2 6.1 6.4 6.5 6.7 79 Real estate 854.3 860.2 864.4 868.9 868.8 868.8 868.8 870.3 872.0 871.3 870.1 872.5 30 Individual 372.5 371.6 371.9 370.7 368.3 369.3 368.7 365.3 364.7 368.6 368.1 364.2 31 Security 49.5 49.8 46.7 49.1 46.3 47.3 48.7 50.9r 53.6 55.2 58.6 61.5 3? Nonbank financial 36.3 35.5 36.1 39.6 39.0 37.8 37.2 37.8 39.5 4411..99 40.8 4411..88 33 Agricultural 31.7 32.7 33.3 34.2 34.7 35.1 35.3 35.0 34.2 34.1 33.3 32.8 34 State and political subdivisions 32.8 32.2 31.7 31.3 30.7 30.4 30.1 2299..77 29.4 2299..11 2288..66 2288..55 35 Foreign banks 7.3 6.9 6.4 6.3 6.5 6.5 6.9 6.8 7.1 7.7 6.9 6.5 36 Foreign official institutions 2.8 2.5 2.4 2.5 2.4 2.3 2.3 2.4 2.6 2.5 2.4 2.3 37 Lease-financing receivables 33.3 33.1 33.0 32.9 32.1 31.6 31.6 31.6 31.4 31.4 31.6 31.5 38 All other loans 43.6 42.8 41.6 43.0 41.6 42.9 43.2 42.2r 43.3 44.6 45.2 45.7 1. Data have been revised to reflect new seasonal adjustment factors and Components may not sum to totals because of rounding, benchmarking to Call reports. Historical data may be obtained from the Banking 2. Adjusted to exclude loans to commercial banks in the United States, and Money Market Statistics Section, Division of Monetary Affairs, Board of 3. Includes nonfinancial commercial paper held. Governors of the Federal Reserve System, Washington, DC 20551. 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 Nonfinancial Statistics • May 1992 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS' Billions of dollars, monthly averages 1991 1992 SSoouurrccee ooff ffuunnddss Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Seasonally adjusted 1 Total nondeposit funds 264.8 265.7 260.8 250.2 247.9 245.4 248.7 262.8 264.0 274.5 211 A1 281.3 2 Net balances due to related foreign offices 28.5 28.7 24.6 17.8 18.4 17.8 20.8 31.7 33.9 39.8 44.2R 42.9 3 Borrowings from other than commercial banks in United States4 236.4 237.1 236.2 232.4 229.5 227.6 227.9 231.0 230.0 234.7 233.2 238.5 4 Domestically chartered banks 169.6 170.4 167.2 163.9 160.2 156.0 154.7 153.2 149.2 150.9 152.9R 155.4 5 Foreign-related banks 66.8 66.7 69.0 68.6 69.3 71.6 73.2 77.8 80.9 83.8 80.2 83.1 Not seasonally adjusted 6 Total nondeposit funds 268.8 263.1 266.9 251.3 244.1 242.2 246.0 264.0 268.2 273.0 273.4R 282.0 7 Net balances due to related foreign offices3 28.6 27.4 27.1 17.3 15.2 15.9 19.9 31.3 34.8 43.4 44.9R 43.0 8 Domestically chartered banks -5.7 -3.3 -.3 -3.6R -7.3 -7.2 -8.8 -7.2 -4.4 -3.8 -4.9R -1.0 9 Foreign-related banks 34.2 30.7 27.4 20.9 22.5 23.2 28.8 38.5 39.3 47.2 49.7R 44.0 10 Borrowings from other than commercial banks in United States4 240.2 235.8 239.9 234.0 228.9 226.2 226.1 232.7 233.4 229.6 228.5 238.9 11 Domestically chartered banks 173.0 168.5 170.3 164.1 158.4 154.3 153.6 154.0 153.4 149.6 148.7 155.9 12 Federal funds and security RP borrowings 169.7 165.7 167.6 161.2 155.2 150.6 150.2 150.9 150.2 146.5 145.3 152.4 1 1 3 4 Fo O re t i h g e n r - related banks k6 67 3 . . 2 2 6 2 7 . . 9 2 69 2 . . 5 8 69 2. . 8 9 70 3 . . 4 2 71 3. . 7 9 72 3 . . 5 5 7 3 8 . . 2 6 80 3. . 2 0 8 3 0 . . 1 0 79 3 . . 8 4 8 3 3 . . 5 0 MEMO Gross large time deposits 15 Seasonally adjusted 44L.4R 441.5R 442.5R 441.5R 437.5R 438.2R 436.0R 429.5 426.1 423.9 416.0 413.5 16 Not seasonally adjusted 441.9R 440.2R 443.7R 442.8R 437. lr 440.0R 437.5R 429.7 425.8 422.6 413.6 412.5 U.S. Treasury demand balances at commercial banks8 17 Seasonally adjusted 31.1 22.8 15.8 24.1 22.8 25.3 23.8 29.2 34.2 26.5 27.8 19.4 18 Not seasonally adjusted 28.4 20.4 19.9 23.6 20.7 17.2 26.9 28.7 28.5 25.4 33.1 25.2 1. Commercial banks are nationally and state-chartered banks in the fifty states positions with own International Banking Facilities (IBFs). and the District of Columbia, agencies and branches of foreign banks, New York 4. Borrowings through any instrument, such as a promissory note or due bill, investment companies majority owned by foreign banks, and Edge Act corpora- given for the purpose of borrowing money for the banking business. This includes tions owned by domestically chartered and foreign banks. borrowings from Federal Reserve Banks and from foreign banks, term federal Data in this table also appear in the Board's G.10 (411) release. For ordering funds, loan RPs, and sales of participations in pooled loans. address, see inside front cover. 5. Figures are based on averages of daily data reported weekly by approxi- Data have been revised to reflect new seasonal adjustment factors and bench- mately 120 large banks and quarterly or annual data reported by other banks. marking to Call reports. Historical data may be obtained from the Banking and 6. Figures are partly averages of daily data and partly averages of Wednesday Money Market Statistics Section, Division of Monetary Affairs, Board of Gover- data. nors of the Federal Reserve System, Washington, DC 20551. 7. Time deposits in denominations of $100,000 or more. Estimated averages of 2. Includes federal funds, repurchase agreements (RPs), and other borrowing daily data. from nonbanks and net balances due to related foreign offices. 8. U.S. Treasury demand deposits and Treasury tax-and-loan notes at com- 3. Reflects net positions of U.S. chartered banks, Edge act corporations, and mercial banks. Averages of daily data. U.S. branches and agencies of foreign banks with related foreign offices plus net Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions A19 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKS Last-Wednesday-of-Month Series1 Billions of dollars 1991 1992 AAccccoouunntt Apr. May June July Aug. Sept. Oct. Nov. Dec. Feb. Jan. ALL COMMERCIAL BANKING INSTITUTIONS2 1 Total assets 3,370.8 3,413.3 3,416.8 3,443.6 3,403.4 3,433.3 3,470.1 3,508.4 3,536.0 3,4%. 1 3,493.7 ? Loans and securities 2,913.6 2,929.7 2,941.0 2,947.9 2,933.7 2,953.1 2,980.6 3,001.8 3,022.0 3,011.3 3,011.2 3 Investment securities 627.7 633.2 640.6 650.5 654.0 663.5 686.3 695.9 704.9 704.8 711.4 4 U.S. government securities 462.5 468.4 477.5 488.2 492.1 500.6 522.3 530.6 538.5 539.6 547.3 5 Other 165.1 164.8 163.1 162.3 161.9 162.9 164.0 165.2 166.4 165.2 164.1 6 Trading account assets 27.3 26.9 30.1 33.4 31.3 32.4 34.9 36.0 33.2 38.1 37.6 7 Total loans 2,258.6 2,269.6 2,270.3 2,264.0 2,248.4 2,257.3 2,259.4 2,270.0 2,283.9 2,268.4 2,262.2 8 Interbank loans 156.3 167.9 161.4 169.2 161.3 163.8 168.4 171.4 172.4 176.0 171.3 9 Loans excluding interbank 2,102.4 2,101.7 2,108.8 2,094.8 2,087.1 2,093.5 2,091.0 2,098.6 2,111.5 2,092.4 2,091.0 10 Commercial and industrial 637.3 632.0 627.6 622.2 616.5 619.0 618.5 620.3 620.4 608.7 607.8 11 Real estate 861.0 865.7 868.8 867.8 868.2 867.9 871.5 871.4 871.3 870.7 871.5 1? Individual 372.4 370.9 370.7 369.5 369.3 368.7 365.5 363.8 370.2 367.5 363.1 13 All other 231.6 233.2 241.8 235.4 233.1 237.8 235.5 243.1 249.7 245.5 248.6 14 Total cash assets 196.2 219.8 210.8 212.9 197.5 204.0 206.8 225.3 230.6 203.2 206.1 15 Reserves with Federal Reserve Banks .. 22.4 26.7 29.3 24.3 22.6 26.1 25.9 24.7 29.2 23.7 27.4 16 Cash in vault 29.1 31.1 29.8 29.7 31.0 30.2 30.7 29.6 30.7 31.1 30.7 17 Cash items in process of collection ... 74.3 87.2 78.2 88.0 71.9 75.5 75.3 90.5 87.5 72.8 73.4 18 Demand balances at U.S. depository institutions 26.2 31.0 29.1 27.3 27.6 27.2 29.3 3322..88 3333..33 2288..22 2288..99 19 Other cash assets 44.1 43.8 44.3 43.6 44.4 44.9 45.5 47.7 49.9 47.4 45.6 20 Other assets 261.0 263.8 265.0 282.8 272.2 276.2 282.8 281.3 283.4 281.7 276.3 21 Total liabilities 3,053.5 3,086.0 3,087.2 3,107.0 3,059.2 3,086.1 3,132.1 3,171.3 3,195.9 3,145.8 3,142.3 V Total deposits 2,298.0 2,322.2 2,312.3 2,350.3 2,327.1 2,325.7 2,345.7 2,388.4 2,392.1 2,339.3 2,346.5 23 Transaction accounts 601.4 617.7 611.4 639.8 612.4 614.3 628.7 670.4 682.9 643.9 652.5 24 Savings deposits (excluding checkable) 597.6 608.7 613.4 623.1 627.4 631.3 643.0 665500..77 665566..11 666677..77 668800..22 ?5 Time deposits 1,099.0 1,095.7 1,087.5 1,087.4 1,087.2 1,080.0 1,074.0 1,067.3 1,053.1 1,027.8 1,013.8 76 Borrowings 486.7 489.8 500.4 489.0 466.7 483.8 501.3 487.3 499.5 507.2 503.5 27 Other liabilities 268.8 274.0 274.5 267.7 265.4 276.6 285.1 295.6 304.3 299.3 292.3 28 Residual (assets less liabilities) 317.3 327.3 329.6 336.5 344.2 347.2 338.0 337.0 340.2 350.2 351.4 DOMESTICALLY CHARTERED COMMERCIAL BANKS4 29 Total assets 2,970.6 3,002.4 3,003.5 3,021.4 2,985.4 3,000.9 3,025.1 3,052.3 3,068.7 3,032.2 3,029.6 30 Loans and securities 2,639.1 2,647.8 2,655.3 2,665.1 2,650.3 2,659.4 2,673.8 2,687.9 2,694.7 2,688.2 2,688.0 31 Investment securities 591.6 594.7 602.1 611.3 613.0 621.1 638.2 644.9 651.0 652.3 660.3 3? U.S. government securities 444.0 447.7 456.9 467.2 470.0 477.2 493.4 499.4 505.6 508.5 517.8 33 Other 147.5 147.0 145.1 144.1 143.0 143.8 144.8 145.4 145.4 143.8 142.5 34 Trading account assets 27.3 26.9 30.1 33.4 31.3 32.4 34.9 36.0 33.2 38.1 37.6 35 2,020.2 2,026.2 2,023.1 2,020.5 2,005.9 2,006.0 2,000.6 2,007.1 2,010.5 1,997.8 1,990.0 36 Interbank loans 130.7 141.0 136.8 146.5 141.5 142.8 144.5 150.7 150.5 156.3 150.7 37 Loans excluding interbank 1,889.5 1,885.2 1,886.3 1,874.1 1,864.4 1,863.2 1,856.2 1,856.4 1,860.1 1,841.5 1,839.3 38 Commercial and industrial 501.3 494.4 490.0 482.5 475.6 472.9 471.0 468.3 463.4 454.9 454.5 39 Real estate 810.6 814.3 816.8 815.1 814.9 814.3 817.1 816.8 816.3 815.7 816.0 40 Revolving home equity 64.5 65.3 66.0 66.6 67.3 68.1 68.9 69.2 69.9 71.0 70.6 41 Other real estate 746.1 749.0 750.8 748.4 747.6 746.2 748.2 747.6 746.4 744.8 745.4 4? Individual 372.4 370.9 370.7 369.5 369.3 368.7 365.5 363.8 370.2 367.5 363.1 43 All other 205.2 205.7 208.9 207.0 204.6 207.4 202.6 207.5 210.2 203.4 205.8 44 Total cash assets 171.8 194.2 185.2 187.7 171.5 176.5 179.1 197.6 201.7 176.3 179.7 45 Reserves with Federal Reserve Banks. 22.0 25.8 28.2 23.9 22.1 24.9 25.1 24.0 28.5 23.3 26.8 46 Cash in vault 29.1 31.1 29.8 29.7 31.0 30.1 30.7 29.6 30.7 31.1 30.7 47 Cash items in process of collection ... 72.7 85.6 76.2 86.3 70.3 74.0 73.6 88.3 85.4 71.0 71.7 48 Demand balances at U.S. depository institutions 24.6 29.1 27.3 25.6 25.7 2255..22 27.4 3300..77 3311..11 2266..22 2277..11 49 Other cash assets 23.4 22.7 23.6 22.3 22.3 22.3 22.4 25.0 25.9 24.7 23.4 50 Other assets 159.7 160.4 163.0 168.5 163.6 165.0 172.2 166.8 172.3 167.7 161.9 51 Total liabilities 2,746.7 2,775.1 2,776.2 2,792.2 2,753.4 2,767.4 2,794.1 2,821.0 2,836.2 2,796.1 2,792.6 5? Deposits 2,263.7 2,285.6 2,275.7 2,313.5 2,289.3 2,286.9 2,301.2 2,340.9 2,342.5 2,292.0 2,301.3 53 Transaction accounts 592.1 608.3 601.7 630.4 603.1 605.3 619.4 660.4 672.6 634.1 643.2 54 Savings deposits (excluding checkable) 594.0 605.1 609.7 619.3 623.7 662277..55 663399..22 664466..88 665522..11 666633..66 667766..11 55 Time deposits 1,077.5 1,072.2 1,064.3 1,063.8 1,062.6 1,054.1 1,042.6 1,033.7 1,017.8 994.3 982.0 56 Borrowings 349.9 357.6 369.8 352.7 339.1 354.6 362.1 346.8 356.8 367.9 360.8 57 Other liabilities 133.1 131.9 130.7 126.0 125.0 125.9 130.8 133.3 136.9 136.2 130.5 58 Residual (assets less liabilities)3 223.9 227.3 227.2 229.2 232.0 233.5 230.9 231.3 232.4 236.1 236.9 1. Data have been revised to reflect benchmarking to quarterly Call reports. State foreign investment corporations. Data are estimates for the last Wednesday Back data are available from the Banking and Monetary Statistics Section, Board of the month based on a sample of weekly-reporting foreign-related institutions of Governors of the Federal Reserve System, Washington, D.C., 20551. Data in and quarter-end condition reports. this table also appear in the Board's H.8 (510) weekly statistical release. 3. This balancing item is not intended as a measure of equity capital for use in Data are partly estimated. They include all bank-premises subsidiaries and capital adequacy analysis. other significant majority-owned domestic subsidiaries. Components may not sum 4. Includes all member banks and insured nonmember banks. Loans and to totals because of rounding. securities data are estimates for the last Wednesday of the month based on a 2. Includes insured domestically chartered commercial banks, agencies and sample of weekly-reporting banks and quarter-end condition reports. branches of foreign banks, Edge act and agreement corporations, and New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • May 1992 1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY-REPORTING COMMERCIAL BANKS1 Millions of dollars, Wednesday figures 1992 AAccccoouunntt Jan. 1" Jan. 8 Jan. 15 Jan. 22 Jan. 29 Feb. 5 Feb. 12 Feb. 19 Feb. 26 ASSETS 1 Cash and balances due from depository institutions 125,881 106,687r 123,479r 123,370" 104,647" 103,562 103,753 127,323 105,954 2 U.S. Treasury and government securities 227,928 227,696 229,256r 230,739 228,760 236,435 235,122 235,677 233,924 3 Trading account 17,967 18,659 19,589" 20,598 20,659 22,681 22,485 23,319 21,861 4 Investment account 209,962 209,036 209,667 210,141 208,102 213,754 212,637 212,358 212,063 5 Mortgage-backed securities 79,183 78,827 78,562 78,949 78,583 80,055 80,398 79,361 79,643 All others, by maturity 6 One year or less 25,493 26,034 26,889 26,526 24,731 24,123 23,086 23,864 23,647 7 One year through five years 54,521 55,980 57,013 57,688 57,960 61,586 61,471 61,377 61,793 X More than five years 50,765 48,195 47,202 46,978 46,827 47,990 47,682 47,756 46,980 9 Other securities 56,721 55,645r 55,505" 55,465" 55,455 55,406 54,736 54,405 54,423 10 Trading account 2,019 1,290" 1,251" 1,237" 1,614 1,214 1,155 1,094 1,147 11 Investment account 54,702 54,355 54,254 54,228 53,841 54,192 53,580 53,311 53,276 12 State and political subdivisions, by maturity 22,966 22,673 22,641 22,689 22,580 22,377 22,323 22,291 22,306 13 One year or less 3,275 3,161 3,171 3,241 3,231 3,239 3,233 3,325 3,331 14 More than one year 19,691 19,512 19,470 19,448 19,349 19,137 19,091 18,966 18,975 15 Other bonds, corporate stocks, and securities 31,736 31,682 31,613 31,539 31,261 31,815 31,257 31,020 30,970 16 Other trading account assets 11,447 12,596 11,842 12,371 13,178 13,560 13,398 13,895 12,532 17 Federal funds sold3 77,163 95,687 107,976 100,767 95,181" 105,919 99,225 102,618 93,576 18 To commercial banks in the United States 52,971 64,397 73,712 70,880 66,540 71,859 67,670 71,099 61,429 19 To nonbank brokers and dealers 20,056 24,463 28,690 24,247 22,804" 26,966 25,051 25,699 26,219 20 To others 4,137 6,828 5,574 5,640 5,837 7,094 6,503 5,820 5,927 21 Other loans and leases, gross 1,017,258 1,013,033 1,012,646" 1,009,905" 1,008,106" 1,012,018 1,007,147 1,007,060 1,001,627 22 Commercial and industrial 293,414 290,2 llr 290,165" 289,386" 288,661" 290,577 288,049 289,434 288,904 23 Bankers acceptances and commercial paper 1,946 1,633 1,608 1,597 1,584 1,669 1,586 1,820 1,771 24 All other 291,468 288,579r 288,557" 287,789" 287,077" 288,908 286,462 287,614 287,133 25 U.S. addressees 289,921 287,055r 287,021" 286,243" 285,569" 287,368 285,012 286,009 285,574 26 Non-U.S. addressees 1,548 1,523 1,536 1,545 1,508 1,540 1,450 1,605 1,559 27 Real estate loans 403,174 403,255r 402,748" 401,941" 402,295" 403,499 404,336 402,066 400,715 28 Revolving, home equity 41,494 41,472 41,594 41,665 41,685 41,632 41,601 41,560 41,507 29 All other 361,680 361,782r 361,155" 360,276" 360,609" 361,867 362,735 360,506 359,208 30 To individuals for personal expenditures 188,386 187,844r 187,030" 186,852" 186,787" 185,879 185,746 184,701 184,215 31 To financiali nstitutions 46,523 45,717 45,768 44,872 45,521 46,628 44,720 44,615 43,733 32 Commercial banks in the United States 20,922 20,772 21,514 20,831 21,565 21,458 20,375 20,709 20,305 33 Banks in foreign countries 2,079 1,858 2,091 2,065 1,934 2,348 1,732 1,593 1,596 34 Nonbank financial institutions 23,521 23,086 22,163 21,976 22,022 22,822 22,614 22,313 21,832 35 For purchasing and carrying securities 12,506 13,791 14,374 14,784 14,107 14,263 14,006 13,757 13,368 36 To finance agricultural production 6,191 6,039 6,023" 5,949" 5,850 5,825 5,867 5,872 5,774 37 To states and political subdivisions 17,684 17,534 17,443 17,432 17,344 17,260 17,241 17,322 17,221 38 To foreign governments and official institutions 918 1,001 928 939 898 957 896 985 885 39 All other loans 22,710 21,845 22,383 21,982 20,909 21,410 20,633 22,601 21,112 40 Lease-financing receivables 25,752 25,797r 25,785" 25,769" 25,734" 25,720 25,653 25,706 25,699 41 LESS: Unearned income 3,305 3,255 3,244 3,233 3,275 3,222 3,214 3,212 3,194 42 Loan and lease reserve 37,221 37,127 37,257 37,206 37,056 37,763 37,946 37,915 37,885 43 Other loans and leases, net 976,733 972,651 972,145" 969,467" 967,775" 971,033 965,987 965,933 960,549 44 Other assets 170,837 159,783r 162,538" 157,757" 154,771" 157,080 156,267 153,080 149,332 45 Total assets 1,646,711 1,630,746' 1,662,740' 1,649,936' 1,619,767' 1,642,995 1,628,487 1,652,931 1,610,289 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 1992 AAccccoouunntt Jan. lr Jan. 8 Jan. 15 Jan. 22 Jan. 29 Feb. 5 Feb. 12 Feb. 19 Feb. 26 LIABILITIES 46 Deposits 1,158,692 l,135,391r l,158,335r 1,129,720r 1,110,251r 1,130,593 1,121,828 1,134,582 1,112,695 47 Demand deposits 267,387 237,790r 262,417r 245,172r 230,402r 239,837 233,928 249,787 233,240 48 Individuals, partnerships, and corporations 214,334 193,148r 207,174r 193,31 lr 182,840r 192,529 188,927 196,813 184,684 49 Other holders 53,053 44,642r 55,242r 51,861r 47,562r 47,308 45,001 52,974 48,556 50 States and political subdivisions 9,242 7,896 8,001 8,389 7,753 8,317 7,446 8,192 8,026 51 U.S. government 3,050 1,754 4,975 2,439 1,796 2,339 1,757 1,653 1,771 52 Depository institutions in the United States 24,057 19,801r 25,436r 23,412r 20,098r 20,934 20,645 25,619 22,083 53 Banks in foreign countries 5,753 5,294 5,538 5,813 5,194 4,870 4,490 5,133 4,661 54 Foreign governments and official institutions 1,000 532 604 694 668 940 542 573 622 55 Certified and officers' checks 9,949 9,365 10,689 11,115 12,051r 9,909 10,120 11,805 11,393 56 Transaction balances other than demand deposits .... 105,012 106,020 104,795 101,460 99,458 104,610 101,469 102,112 100,503 57 Nontransaction balances 786,294 791,581 791,124 783,087 780,391 786,146 786,432 782,683 778,952 58 Individuals, partnerships, and corporations 756,514 760,809r 760,532r 752,739r 749,00 r 754,222 753,946 750,044 746,639 59 Other holders 29,780 30,772r 30,59 lr 30,348r 31,390" 31,924 32,486 32,638 32,313 60 States and political subdivisions 24,015 24,687 24,598 24,427 25,049 25,612 26,257 26,136 26,084 61 U.S. government 1,105 1,494 1,484 1,484 1,517 1,565 1,570 1,619 1,611 62 Depository institutions in the United States 4,372 4,217r 4,139r 4,076r 4,464r 4,387 4,302 4,531 4,269 63 Foreign governments, official institutions, and banks .... 287 374 370 361 360 360 357 353 348 64 Liabilities for borrowed money6 262,656 273,104 280,779r 294,907r 282,075r 285,962 282,407 296,457 275,562 65 Borrowings from Federal Reserve Banks 0 4,583 0 965 0 440 0 0 0 66 Treasury tax and loan notes 25,798 16,173 16,866r 29,461 29,817 20,151 19,703 14,696 12,600 67 Other liabilities for borrowed money 236,858 252,349r 263,913r 264,481r 252,258r 265,370 262,704 281,762 262,962 68 Other liabilities (including subordinated notes and debentures) 107,455 104,139r 105,498r 106,125r 107,374r 106,625 103,903 101,379 101,657 69 Total liabilities 1,528,803 L,512,634R 1,544,612R L,530,752R 1,499,700R 1,523,180 1,508,138 1,532,418 1,489,914 70 Residual (total assets less total liabilities)8 117,908 118,111 118,128 119,183 120,067 119,815 120,349 120,513 120,375 MEMO 71 Total loans and leases, gross, adjusted, plus securities .. 1,316,625 l,319,488r l,32I,999r l,317,536r l,312,576r 1,330,021 1,321,582 1,321,847 1,314,348 72 Time deposits in amounts of $100,000 or more 162,861 164,618r 163,006r 161,578r 160,702r 161,337 161,114 157,924 157,820 73 Loans sold outright to affiliates10 1,232 1,247 1,233 1,230 1,224 1,219 1,212 1,214 1,220 74 Commercial and industrial 680 701 695 697 685 684 674 681 683 75 Other 553 546 538 534 538 535 537 533 537 76 Foreign branch credit extended to U.S. residents 23,603 23,822 23,829 23,685 23,409 23,544 23,195 23,152 23,136 77 Net due to related institutions abroad -11,695 -5,782r -7,972 -3,792 453 -971 -2,834 -2,068 1,961 1. Components may not sum to totals because of rounding. the United States. 2. Includes certificates of participation, issued or guaranteed by agencies of the 10. Affiliates include a bank's own foreign branches, nonconsolidated nonbank U.S. government, in pools of residential mortgages. affiliates of the bank, the bank's holding company (if not a bank), and noncon- 3. Includes securities purchased under agreements to resell. solidated nonbank subsidiaries of the holding company. 4. Includes allocated transfer risk reserve. 11. Credit extended by foreign branches of domestically chartered weekly- 5. Includes negotiable order of withdrawal (NOW), automatic transfer service reporting banks to nonbank U.S. residents. Consists mainly of commercial and (ATS), and telephone and preauthorized transfer savings deposits. industrial loans, but includes an unknown amount of credit extended to other than 6. Includes borrowings only from other-than-directly-related institutions. nonfinancial businesses. 7. Includes federal funds purchased and securities sold under agreements to NOTE. Data that formerly appeared in table 1.28, Assets and Liabilities of Large repurchase. Weekly Reporting Commercial Banks in New York City, can be obtained from the 8. This balancing item is not intended as a measure of equity capital for use in Board's H.4.2 (504) weekly statistical release. For ordering address see inside capital-adequacy analysis. front cover. 9. Excludes loans to and federal funds transactions with commercial banks in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic NonfinancialS tatistics • May 1992 1.30 LARGE WEEKLY-REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS Assets and Liabilities1 Millions of dollars, Wednesday figures 1992 AAccccoouunntt Jan. 1 Jan. 8 Jan. 15 Jan. 22 Jan. 29 Feb. 5 Feb. 12 Feb. 19 Feb. 26 1 Cash and balances due from depository institutions 17,349 16,733 17,412 17,034R 16,543 16,441 15,633 16,504 16,226 2 U.S. Treasury and government agency securities 21,792 22,167 21,947 20,836 20,459 20,802 20,180 20,167 19,381 3 Other securities 8,890 8,927 8,826 8,949 8,913 8,947 9,015 8,992 8,990 4 Federal funds sold1 12,861R 9,531 10,533 13,692 11,276 10,271 11,896 14,441 13,461 5 To commercial banks in the United States ... 6,472 3,774 3,812 7,519 3,905 3,518 3,116 5,890 4,318 6 To others2 6,390R 5,756 6,721 6,173 7,371 6,753 8,780 8,551 9,143 7 8 Ot C he o r m l m oa e n rc s i a a l n d an l d ea i s n e d s u , s g tr r i o a s l s 1 9 6 8 8 , , 3 5 1 1 6 7 R R 1 9 6 7 2, , 7 1 3 3 5 l r 1 9 6 7 3 , , 6 2 8 6 4 6 R 1 9 6 7 3 , , 2 3 7 6 8 3 R 1 9 6 7 4 , , 7 7 0 6 5 1 R 1 9 6 7 4 , , 2 9 8 2 4 9 1 9 6 6 1 , , 8 8 1 7 0 0 1 9 6 6 2 , , 6 3 1 3 2 2 1 9 6 7 3 , , 3 6 4 8 6 8 9 Bankers acceptances and commercial paper 2,573 2,322 2,288 2,373 2,314 2,620 2,487 2,454 2,611 10 All other 95,744R 94,809R 95,396R 94,905R 95,391R 94,664 94,323 94,158 94,735 11 U.S. addressees 92,741R 91,930 92,525 92,021 92,495 91,790 91,496 91,342 91,888 12 Non-U.S. addressees 3,002R 2,879R 2,871R 2,884R 2,896R 2,873 2,827 2,816 2,847 13 Loans secured by real estate 36,708R 36,581 36,652 36,638 36,564 36,802 37,089 37,020 36,912 14 To financial institutions 22,230 21,3% 20,314 20,369 20,851 21,578 20,238 20,325 21,144 15 Commercial banks in the United States.. 8,292 7,889 7,566 7,704 7,824 8,119 7,294 7,347 7,755 16 Banks in foreign countries 1,919 1,941 1,816 1,807 1,866 2,068 1,832 1,685 1,692 17 Nonbank financial institutions 12,020 11,567 10,932 10,858 11,161 11,391 11,112 11,292 11,697 18 For purchasing and carrying securities .... 8,310 5,173 6,113 6,591 7,225 6,925 5,348 5,828 5,759 19 To foreign governments and official institutions 339900RR 378R 337799""^^ 392R 405R 368 357 370 373 20 All other 2,563 2,075 2,124 2,094 2,011 1,973 2,029 2,178 2,152 21 Other assets (claims on nonrelated parties) .. 32,232 30,963 30,229 29,811 30,142 29,747 29,352 28,589 28,684 22 Total assets3 297,449 288,063 292,890 292,980r 291,881 293,375 291,017 290,037 291,992 23 Deposits or credit balances due to other than directly related institutions 96,363 95,232 95,339 97,794R 101,546 99,691 98,684 97,148 100,441 24 Demand deposits4 4,200 3,792 3,755 3,781R 3,665R 4,030 3,613 3,919 3,439 25 Individuals, partnerships, and corporations 3,381 2,970 2,928 2,960R 2,801 2,898 2,771 3,019 2,759 26 Other 819 823 827 822R 864R 1,131 842 899 679 27 Nontransaction accounts 92,163 91,439 91,584 94,013R 97,880"^ 95,662 95,071 93,229 97,002 28 Individuals, partnerships, and corporations 65,058 64,477 64,529 66,736 69,212 67,223 66,933 64,853 68,197 79 Other 27,104 26,963 27,054 27,276R 28,669R 28,439 28,138 28,377 28,805 30 Borrowings from other than directly related institutions 107,426 104,537 105,354 102,142 99,849 106,875 102,722 103,328 102,249 31 Federal funds purchased 52,627R 53,691 58,103 53,445 51,208 58,151 56,087 55,760 51,131 32 From commercial banks in the United States 22,550R 24,043 26,338 20,803 22,282 25,363 21,325 21,340 21,441 33 From others 30,077R 29,648 31,766 32,642 28,926 32,788 34,763 34,419 29,690 34 Other liabilities for borrowed money 54,799R 50,846 47,251 48,698 48,641 48,724 46,634 47,569 51,118 35 To commercial banks in the United States 16,765R 15,241 15,050 14,778 16,097 14,744 13,996 13,562 14,210 36 To others 38,034R 35,606 32,201 33,920 32,544 33,980 32,638 34,006 36,907 37 Other liabilities to nonrelated parties 29,456 28,584 28,079 27,704 27,317 26,955 26,920 26,480 26,515 38 Total liabilities6 297,449 288,063 292,890 292,980r 291,881 293,375 291,017 290,037 291,992 MEMO 39 Total loans (gross) and securities, adjusted7.. 197,297 191,697 193,194 191,618 193,680 193,312 192,551 192,695 193,447 40 Net due to related institutions abroad 28,397 22,704 23,442 26,046 23,382 17,615 19,621 24,069 21,225 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 1992 11998877 11998888 11998899 11999900 11999911 IItteemm DDeecc.. DDeecc.. DDeecc.. DDeecc.. DDeecc.. Aug. Sept. Oct. Nov. Dec. Jan Commercial paper (seasonally adjusted unless noted otherwise) 11 AAllll iissssuueerrss 358,997 458,464 525,831r 561,142r 530,300r 538,935r 532,426r 532,342r 534,969r 530,300r 533,339 FFiinnaanncciiaall ccoommppaanniieess22 DDeeaalleerr--ppllaacceedd ppaappeerr 22 TToottaall 102,742 159,777 183,622r 215,123r 214,445r 209,001r 212,031r 219,938r 218,149r 214,445r 220,208 33 BBaannkk--rreellaatteedd ((nnoott sseeaassoonnaallllyy aaddjjuusstteedd)) 1,428 1,248 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. DDiirreeccttllyy ppllaacceedd ppaappeerr 44 TToottaall 174,332 194,931 210,930r 199,835r 183,195r 192,095r 189,236r 180,179*" 181,582r 183,195r 180,221 55 BBaannkk--rreellaatteedd ((nnoott sseeaassoonnaallllyy aaddjjuusstteedd)) 43,173 43,155 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 66 NNoonnffiinnaanncciiaall ccoommppaanniieess66 81,923 103,756 131,279r 146,184r 132,660r 137,839r 131,159r 132,225r 135,238r 132,660r 132,910 Bankers dollar acceptances (not seasonally adjusted)7 7 Total 70,565 66,631 62,972 54,771 43,770 44,228 43,462 44,910 43,947 43,770 43,112 Holder 8 Accepting banks 10,943 9,086 9,433 9,017 ll,017r 9,622 10,174 9,876 10,750 ll,017r 11,291 9 Own bills 9,464 8,022 8,510 7,930 9,347r 7,826 8,237 8,306 8,754 9,347r 9,273 10 Bills bought 1,479 1,064 924 1,087 1,670 1,795 1,937 1,570 1,996 1,670 2,018 Federal Reserve Banks 11 Own account 0 0 0 0 0 0 0 0 0 0 0 12 Foreign correspondents 965 1,493 1,066 918 1,739 1,665 1,678 1,862 1,705 1,739 1,574 13 Others 58,658 56,052 52,473 44,836 31,014r 32,941 31,610 33,172 31,491 31,014r 30,247 Basis 14 Imports into United States 16,483 14,984 15,651 13,096 12,843 12,968 12,876 13,265 13,472 12,843 12,995 15 Exports from United States 15,227 14,410 13,683 12,703 10,351 11,044 10,966 11,105 10,486 10,351 9,740 16 All other 38,855 37,237 33,638 28,973 20,577 20,215 19,620 20,541 19,982r 20,577 20,377 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 Loans1 Percent per year Date of change 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 10.50 1989 10.87 1990— Jan. ... 10.11 1991— Jan. Feb. 10 11.00 1990 10.01 Feb. .. 10.00 Feb. 24 11.50 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 1992—Jan. Nov. 10.50 Feb. Dec. 10.50 Mar. 1. Data in this table also appear in the Board's H.15 (519) weekly and G.13 (415) monthly statistical releases. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic NonfinancialS tatistics • May 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 1992 1992, week ending IItteemm 11998899 11999900 11999911 Nov. Dec. Jan. Feb. Jan. 31 Feb. 7 Feb. 14 Feb. 21 Feb. 28 MONEY MARKET INSTRUMENTS 1 Federal funds1'2'3 9.21 8.10 5.69 4.81 4.43 4.03 4.06 4.01 4.17 3.93 4.20 3.96 2 Discount window borrowing '4 6.93 6.98 5.45 4.58 4.11 3.50 3.50 3.50 3.50 3.50 3.50 3.50 Commercial paper3,5,6 3 1-month 9.11 8.15 5.89 4.95 4.98 4.11 4.11 4.08 4.07 4.02 4.17 4.19 4 3-month 8.99 8.06 5.87 4.98 4.61 4.07 4.11 4.09 4.07 4.02 4.17 4.20 5 6-month 8.80 7.95 5.85 4.93 4.49 4.06 4.13 4.09 4.07 4.02 4.19 4.24 Finance paper, directly placed3'5'7 6 1-month 8.99 8.00 5.73 4.80 4.69 3.99 4.01 4.00 3.97 3.91 4.08 4.08 7 3-month 8.72 7.87 5.71 4.87 4.39 3.99 4.02 4.01 3.98 3.92 4.07 4.12 8 6-month 8.16 7.53 5.60 4.76 4.31 3.95 3.96 3.98 3.96 3.87 4.00 4.04 Bankers acceptances3'5'8 9 3-month 8.87 7.93 5.70 4.85 4.42 3.97 4.00 4.00 3.95 3.92 4.05 4.08 10 6-month 8.67 7.80 5.67 4.76 4.28 3.96 4.02 4.02 3.95 3.93 4.11 4.11 Certificates qf deposit, secondary market,9 11 1-month 9.11 8.15 5.82 4.86 4.84 4.07 4.05 4.06 4.01 3.96 4.11 4.14 12 3-month 9.09 8.15 5.83 4.94 4.47 4.05 4.07 4.08 4.02 3.96 4.13 4.16 13 6-month 9.08 8.17 5.91 4.92 4.41 4.07 4.13 4.11 4.06 4.00 4.21 4.27 14 Eurodollar deposits, 3-month3,10 9.16 8.16 5.86 4.96 4.48 4.06 4.05 4.08 4.03 3.91 4.11 4.16 U.S. Treasury bills Secondary market3-5 15 3-month 8.11 7.50 5.38 4.56 4.07 3.80 3.84 3.84 3.81 3.76 3.87 3.94 16 6-month 8.03 7.46 5.44 4.61 4.10 3.87 3.93 3.92 3.87 3.85 3.98 4.03 17 1-year 7.92 7.35 5.52 4.64 4.17 3.95 4.08 4.02 3.98 4.00 4.16 4.19 Auction average • ' 18 3-month 8.12 7.51 5.42 4.60 4.12 3.84 3.84 3.84 3.86 3.72 3.83 3.96 19 6-month 8.04 7.47 5.49 4.66 4.16 3.88 3.94 3.93 3.93 3.80 3.93 4.08 20 1-year 7.91 7.36 5.54 4.72 4.20 3.84 4.01 n.a. n.a. 4.01 n.a. n.a. U.S. TREASURY NOTES AND BONDS Constant maturities12 21 1-year 8.53 7.89 5.86 4.89 4.38 4.15 4.29 4.23 4.19 4.19 4.37 4.41 22 2-year 8.57 8.16 6.49 5.56 5.03 4.96 5.21 5.14 5.07 5.10 5.32 5.37 23 3-year 8.55 8.26 6.82 5.90 5.39 5.40 5.72 5.65 5.61 5.61 5.82 5.86 24 5-year 8.50 8.37 7.37 6.62 6.19 6.24 6.58 6.41 6.44 6.50 6.70 6.70 25 7-year 8.52 8.52 7.68 7.06 6.69 6.70 6.96 6.88 6.87 6.90 7.06 7.04 26 10-year 8.49 8.55 7.86 7.42 7.09 7.03 7.34 7.25 7.25 7.31 7.44 7.37 27 30-year 8.45 8.61 8.14 7.92 7.70 7.58 7.85 7.74 7.77 7.84 7.94 7.88 Composite13 28 Over 10 years (long-term) 8.58 8.74 8.16 7.83 7.58 7.48 7.78 7.66 7.69 7.76 7.87 7.81 STATE AND LOCAL NOTES AND BONDS Moody's series14 29 Aaa 7.00 6.96 6.56 6.24 6.32 6.13 n.a. 6.20 6.22 6.31 6.41 6.27 30 Baa 7.40 7.29 6.99 6.58 6.65 6.47 n.a. 6.54 6.58 6.65 6.80 6.64 31 Bond Buyer series 7.23 7.27 6.92 6.73 6.69 6.54 6.74 6.65 6.71 6.74 6.75 6.74 CORPORATE BONDS 32 Seasoned issues, all industries16 9.66 9.77 9.23 8.93 8.75 8.64 8.75 8.70 8.70 8.73 8.81 8.78 Rating group 33 Aaa 9.26 9.32 8.77 8.48 8.31 8.20 8.29 8.25 8.25 8.27 8.33 8.31 34 Aa 9.46 9.56 9.05 8.78 8.61 8.51 8.67 8.58 8.60 8.64 8.73 8.72 35 A 9.74 9.82 9.30 9.01 8.82 8.72 8.83 8.76 8.78 8.81 8.88 8.87 36 Baa 10.18 10.36 9.80 9.45 9.26 9.13 9.23 9.20 9.18 9.21 9.29 9.23 37 A-rated, recently offered utility bonds17 9.79 10.01 9.32 8.95 8.68 8.57 8.79 8.72 8.71 8.85 8.87 8.72 MEMO: Dividend-price ratio18 38 Preferred stocks 9.05 8.96 8.17 7.81 7.62 7.54 7.54 7.61 7.57 7.46 7.51 7.86 39 Common stocks 3.45 3.61 3.25 3.15 3.11 2.90 2.94 2.96 2.94 2.91 2.98 2.94 1. The daily effective federal funds rate is a weighted average of rates on 12. Yields on actively traded issues adjusted to constant maturities. Source: trades through N.Y. brokers. U.S. Treasury. 2. Weekly figures are averages of seven calendar days ending on Wednesday 13. Unweighted average of rates on all outstanding bonds neither due nor of the current week; monthly figures include each calendar day in the month. callable in less than 10 years, including one very low yielding "flower" bond. 3. Annualized using a 360-day year or bank interest. 14. General obligations based on Thursday figures; Moody's Investors Service. 4. Rate for the Federal Reserve Bank of New York. 15. General obligations only, with twenty years to maturity, issued by twenty 5. Quoted on a discount basis. state and local governmental units of mixed quality. Based on figures for 6. An average of offering rates on commercial paper placed by several leading Thursday. dealers for firms whose bond rating is AA or the equivalent. 16. Daily figures from Moody's Investors Service. Based on yields to maturity 7. An average of offering rates on paper directly placed by finance companies. on selected long-term bonds. 8. Representative closing yields for acceptances of the highest rated money 17. Compilation of the Federal Reserve. This series is an estimate of the yield center banks. on recently-offered, A-rated utility bonds with a thirty-year maturity and five 9. An average of dealer offering rates on nationally traded certificates of years of call protection. Weekly data are based on Friday quotations. deposit. 18. Standard and Poor's corporate series. Preferred stock ratio based on a 10. Bid rates for Eurodollar deposits at 11 a.m. London time. Data are for sample often issues: four public utilities, four industrials, one financial, and one indication purposes only. transportation. Common stock ratios on the 500 stocks in the price index. 11. Auction date for daily data; weekly and monthly averages computed on an NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases. issue-date basis. For address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A25 1.36 STOCK MARKET Selected Statistics 1991 1992 IInnddiiccaattoorr 11998899 11999900 11999911 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Prices and trading volume (averages of daily figures) Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 180.13 183.66 206.35 207.32 208.29 213.33 212.55 213.10 213.25 214.26 229.34 228.12 2 Industrial 228.04 226.06 258.16 261.16 262.48 268.22 266.21 265.68 264.89 266.01 286.62 286.09 3 Transportation 174.90 158.80 173.97 177.05 177.15 178.42 177.99 187.45 188.52 185.47 201.55 205.53 4 Utility 94.33 90.72 92.64 89.01 90.05 92.38 93.72 95.25 96.78 98.08 99.31 96.19 5 Finance 162.01 133.21 150.84 152.30 151.69 157.70 157.69 158.94 159.78 159.96 174.50 174.05 6 Standard & Poor's Corporation (1941-43 = 10)1 323.05 335.01 376.20 378.29 380.23 389.40 387.20 386.88 385.87 388.51 416.08 412.56 7 American Stock Exchange (Aug. 31, 1973 = 50? 356.67 338.32 360.32 366.06 364.33 367.38 369.55 376.82 382.38 373.08 409.08 413.74 Volume of trading (thousands of shares) 8 New York Stock Exchange 165,568 156,359 179,411 162,154 157,871 171,490 163,242 177,502 187,191 197,914 239,903 226,476 9 American Stock Exchange 13,124 13,155 12,486 11,477 10,883 12,514 13,378 13,764 14,487 17,475 20,444 18,126 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers 34,320 28,210 36,660 31,280 30,600 32,240 33,170 33,360 34,840 36,660 36,350 38,200 Free credit balances at brokers4 11 Margin accounts 7,040 8,050 8,290 6,690 6,545 7,040 6,950 6,965 7,040 8,290 7,865 7,620 12 Cash accounts 18,505 19,285 19,255 18,110 16,945 17,040 17,595 17,100 17,780 19,255 19,990 20,370 Margin requirements (percent of market value and effective date)6 Mar. 11, 1968 June 8, 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 13 Margin stocks 70 80 65 55 65 50 14 Convertible bonds 50 60 50 50 50 50 15 Short sales 70 80 65 55 65 50 1. Effective July 1976, includes a new financial group, banks and insurance on securities other than options are the difference between the market value (100 companies. With this change the index includes 400 industrial stocks (formerly percent) and the maximum loan value of collateral as prescribed by the Board. 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40 Regulation T was adopted effective Oct. 15, 1934; Regulation U, effective May 1, financial. 1936; Regulation G, effective Mar. 11, 1968; and Regulation X, effective Nov. 1, 2. On July 5, 1983, the American Stock Exchange rebased its index, effectively 1971. cutting previous readings in half. On Jan. 1, 1977, the Board of Governors for the first time established in 3. Since July 1983, under the revised Regulation T, margin credit at broker- Regulation T the initial margin required for writing options on securities, setting dealers has included credit extended against stocks, convertible bonds, stocks it at 30 percent of the current market value of the stock underlying the option. On acquired through exercise of subscription rights, corporate bonds, and govern- Sept. 30, 1985, the Board changed the required initial margin, allowing it to be the ment securities. Separate reporting of data for margin stocks, convertible bonds, same as the option maintenance margin required by the appropriate exchange or and subscription issues was discontinued in April 1984, self-regulatory organization; such maintenance margin rules must be approved by 4. Free credit balances are amounts in accounts with no unfulfilled commit- the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC ments to brokers and are subject to withdrawal by customers on demand. approved new maintenance margin rules, permitting margins to be the price of the 5. New series since June 1984. option plus 15 percent of the market value of the stock underlying the option. 6. These requirements, stated in regulations adopted by the Board of Gover- Effective June 8, 1988, margins were set to be the price option plus 20 percent nors pursuant to the Securities Exchange Act of 1934, limit the amount of credit of the market value of the stock underlying the option (or 15 percent in the case that can be used to purchase and carry "margin securities" (as defined in the of stock-index options). regulations) when such credit is collateralized by securities. Margin requirements Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Nonfinancial Statistics • May 1992 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1991 AAccccoouunntt 11998899 11999900 Mar. Apr. May June Julyr Aug.r Sept.r Oct.r Nov/ Dec. SAIF-insured institutions 1 Assets 1,249,055 1,084,821 1,041,977 1,027,464 1,020,677 1,001,582 984,966 972,524 949,008 937,813 934,560 920,170 2 Mortgages 733,729 633,385 610,618 608,857 605,947 596,022 586,285 578,274 566,053 560,756 557,134 551,140 3 Mortgage-backed securities 170,532 155,228 147,431 143,968 141,582 139,536 137,098 135,751 135,253 134,967 133,344 129,583 4 Contra-assets to mortgage assets1 . 25,457 16,897 14,592 14,413 14,438 14,625 14,247 14,036 13,126 12,446 12,307 12,287 5 Commercial loans 32,150 24,125 22,294 21,903 21,724 20,645 20,301 20,390 18,519 18,150 17,511 17,547 6 Consumer loans 58,685 48,753 47,653 46,702 45,827 45,174 44,352 43,259 42,423 43,061 42,761 41,769 7 Contra-assets to nonmortgage loans . 3,592 1,939 1,827 1,742 1,739 1,745 1,676 1,546 1,399 1,375 1,153 1,247 8 Cash and investment securities 166,053 146,644 138,976 132,878 134,012 130,443 130,263 132,010 125,905 120,793 123,422 120,129 9 Other3 116,955 95,522 91,424 89,301 87,757 86,133 82,590 78,422 75,380 73,907 73,847 73,847 10 Liabilities and net worth . 1,249,055 1,084,821 1,041,977 1,027,464 1,020,677 1,001,582 984,966 972,524 949,008 937,813 934,560 920,170 11 Savings capital 945,656 835,496 816,991 806,266 801,678 792,923 775,434 763,751 749,363 741,360 737,554 732,070 12 Borrowed money 252,230 197,353 169,412 164,268 159,625 151,474 146,901 142,908 132,727 127,356 125,147 121,931 13 FHLBB 124,577 100,391 90,555 86,779 82,312 78,966 76,104 74,424 68,816 66,609 66,005 65,842 14 Other 127,653 96,962 78,857 77,489 77,313 72,508 70,797 68,484 63,911 60,747 59,142 56,089 15 Other 27,556 21,332 20,350 21,752 23,647 20,480 21,654 22,649 19,080 20,390 21,695 17,468 16 Net worth 23,612 30,640 35,223 35,178 35,720 36,705 40,976 43,216 47,838 48,706 50,163 48,701 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 1992 111999888999 111999999000 111999999111 Sept. Oct. Nov. Dec. Jan. Feb. U.S. budget1 1 Receipts, total 990,701 1,031,308 1,054,260 109,345 78,068 73,194 103,662 104,091" 62,056 2 On-budget 727,035 749,652 760,377 83,130 57,216 50,898 80,172 79,937" 38,290 3 Off-budget 263,666 281,656 293,883 26,215 20,852 22,296 23,490 24,154 23,766 4 Outlays, total 1,144,020 1,251,766 1,323,750" 116,232r 114,082r 117,748" 106,199" 119,742 110,815 5 On-budget 933,107 1,026,711 1,082,067r 91,574r 94,099" 95,455" 95,500" 97,189 87,591 6 Off-budget 210,911 225,065 241,685 24,658 19,983 22,293 10,698 22,553 23,224 7 Surplus or deficit (-), total -153,319 -220,469 -269,492r -6,887r -36,014" -44,555" -2,536" -15,650" -48,759 8 On-budget -206,072 -277,059 -321,690" -8,444r -36,883" -44,557" -15,328" -17,252" -49,301 9 Off-budget 52,753 56,590 52,198 1,557 869 3 12,792 1,601 542 Source of financing (total) 10 Borrowing from the public 141,806 220,101 276,802 27,970 40,657 25,641 22,825 11,449 20,938 11 Operating cash (decrease, or increase (-)) ... 3,425 818 -1,329 -23,133 -11,235 28,195 -24,258 925 30,975 12 Other 8,088 -451 -5,981r 2,050" 6,592" -9,281" 3,969" 3,276" -3,154 MEMO 13 Treasury operating balance (level, end of period) 40,973 40,155 41,484 41,484 52,719 24,524 48,782 47,857 16,882 14 Federal Reserve Banks 13,452 7,638 7,928 7,928 18,111 6,317 17,697 10,828 5,477 15 Tax and loan accounts 27,521 32,517 33,556 33,556 34,608 18,207 31,085 37,028 11,405 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 1991 1992 1990 1991 HI H2 H2 Dec. Jan. Feb. RECEIPTS 1 All sources 1,031,308 1,054,260 548,861 503,123 540,504 519,288 103,662 104,091r 62,056 2 Individual income taxes, net 466,884 467,827 243,087 230,745 232,389 233,983 41,722 60,451 22,213 5 6 4 3 N R W Pr e o i e f n t s u h w i n h d i d e e t l n h s d t h i e a l l d E lection Campaign Fund . 3 1 7 8 5 2 8 1 , , , 8 3 2 1 8 8 3 7 4 5 2 4 1 7 0 4 9 4 2 , , , 0 1 6 5 9 5 3 0 3 2 2 1 1 6 1 9 4 7 0 , , , 8 6 2 3 7 1 3 8 5 9 0 2 3 0 8 1 7 , , , 4 7 4 5 2 6 5 8 9 3 1 1 7 0 9 0 9 3 , , , 4 4 4 8 0 4 3 7 5 0 1 2 3 1 9 3 0 , , , 8 2 5 6 9 5 7 6 2 1 3 2 9 , , 6 9 8 1 4 3 4 3 5 0 2 3 5 6 1 , , , 6 0 1 0 4 9 1 7 7 0 3 1 3 2 1 , , , 9 7 0 4 8 5 1 9 5 6 Corporation income taxes 7 Gross receipts 110,017 113,599 58,830 54,044 58,903 54,016 22,546 3,856 2,348 8 Refunds 16,510 15,513 8,326 7,603 7,904 7,956 827 864 1,129 9 Social insurance taxes and contributions, net 380,047 396,011 210,476 178,468 214,303 186,839 30,996 31,832 32,282 10 Employment taxes and contributions 353,891 370,526 195,269 167,224 199,727 175,802 30,418 30,797 29,964 11 Self-employment taxes and contributions 21,795 25,457 19,017 2,638 22,150 3,306 0 -1,361 1,472 12 Unemployment insurance 21,635 20,922 12,929 8,996 12,296 8,721 228 619 1,945 13 Other net receipts 4,522 4,563 2,278 2,249 2,279 2,317 350 415 373 14 Excise taxes 35,345 42,430 18,153 17,535 20,703 24,690 3,912 3,349 3,395 15 Customs deposits 16,707 15,921 8,096 8,568 7,488 8,694 1,405 1,367 1,291 1 1 6 7 E M s i t s a c t e e l l a a n n d e o g u i s ft r t e a c x e e i s p ts 2 1 7 1 , , 3 5 1 0 6 0 2 1 2 1 , , 8 1 4 3 7 8 1 6 2 , , 4 1 4 0 2 6 1 5 6 , , 3 0 3 3 3 2 5 8 , , 6 9 3 9 1 1 1 5 3 , , 5 5 2 0 1 3 3,1 7 5 5 1 7 3,1 9 7 3 0 0 r 7 9 3 2 3 3 OUTLAYS 18 AH types 1,251,776 1,323,750" 640,867 647,461r 632,153r 693,760r 106,199" 119,742 110,815 19 National defense 299,331 272,514 152,733 149,497 122,089 147,531 24,138 25,675 24,265 2 2 2 2 2 2 0 1 3 4 E I G A N n n g a e t e r t n e u r i r e c r g n r u a y a a l l l t t u i r o s r e n c e s i a o e l n u a c r f e c f , e a s i s r p a s a n c d e , e n a v n i d ro t n e m ch e n n o t logy . 1 1 1 1 2 7 1 4 3 , , , , , 3 0 9 4 7 6 7 5 4 6 7 2 8 4 2 1 1 1 1 8 1 6 5 4 , , , , , 7 1 9 7 8 0 6 4 5 6 8 7 6 0 4 6 6 7 7 1 , , , , , 3 9 7 4 2 4 7 7 5 1 3 4 0 0 6 8 8 9 6 , , , , 9 9 8 0 9 4 3 7 8 7 1 3 3 8 9 7 7 8 7 , , , , 3 6 5 4 8 2 8 9 9 1 4 4 2 6 6 1 7 8 7 1 1 , , , , , 6 3 4 2 4 5 3 7 2 3 1 1 5 3 6 2 1 1 1 , , , , 4 5 5 2 1 0 0 8 5 6 9 1 0 2 0 1 1 1 - , , , 6 3 8 2 2 7 0 7 3 3 8 8 8 2 1 1 1 1, , , , 0 2 2 3 2 5 1 4 1 5 5 7 4 2 4 25 Commerce and housing credit 67,160 75,639 38,672 37,491 17,992 36,579 -6,650 4,736 -1,851 26 Transportation 29,485 31,531 13,754 16,218 14,748 17,094 2,731 2,546 2,111 27 Community and regional development .. 8,498 7,432 3,987 3,939 3,552 3,784 546 599 540 28 Education, training, employment, and social services 38,497 41,479 19,537 18,988 21,234 21,104 3,937 3,750 29 Health 57,716 71,183 29,488 31,424 35,608 41,458 7,329 6,688 6,808 30 Social security and medicare 346,383 373,495 175,997 176,353 190,247 193,156 32,676 33,497 32,937 31 Income security 147,314 171,618 78,475 75,948 88,778 87,215 16,191 17,663 18,465 32 Veterans benefits and services 29,112 31,344 15,217 15,479 14,326 17,425 2,637 2,465 3,142 33 Administration of justice 10,004 12,295 4,868 5,265 6,187 6,586 1,142 1,058 1,145 34 General government 10,724 11,358 4,916 6,976 5,212 6,821 1,313 937 776 35 Net interest6 184,221 195,012 91,155 94,650 98,556 99,405 16,564 17,577 16,498 36 Undistributed offsetting receipts' -36,615 -39,356 -17,688 -19,829 -18,702 -20,435 -3,148 -3,147 -2,851 1. Functional details do not sum to total outlays for calendar year data because 5. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts. revisions to monthly totals have not been distributed among functions. Fiscal year 6. Net interest function includes interest received by trust funds. total for outlays does not correspond to calendar year data because revisions from 7. Consists of rents and royalties on the outer continental shelf, U.S. governthe Budget have not been fully distributed across months. ment contributions for employee retirement. 2. Old-age, disability, and hospital insurance, and railroad retirement accounts. SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of 3. Old-age, disability, and hospital insurance. Receipts and Outlays of the U.S. Government, and the U.S. Office of Manage- 4. Federal employee retirement contributions and civil service retirement and ment and Budget, Budget of the U.S. Government, Fiscal Year 1990. disability fund. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic NonfinancialS tatistics • May 1992 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION1 Billions of dollars, end of month 1989 1990 1991 IItteemm Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec 31 1 Federal debt outstanding 2,975.50 3,081.90 3,175.50 3,266.10 3,397.30 3,491.70 3,562.90 3,683.10 3,736.30 2 Public debt securities 2,953.00 3,052.00 3,143.80 3,233.30 3,364.80 3,465.20 3,538.00 3,665.30 3,801.70 3 Held by public 2,245.20 2,329.30 2,368.80 2,437.60 2,536.60 2,598.40 2,642.90 2,745.70 n.a. 4 Held by agencies 707.80 722.70 775.00 795.80 828.30 866.80 895.10 919.60 n.a. 5 Agency securities 22.50 29.90 31.70 32.80 32.50 26.50 25.00 17.80 n.a. 6 Held by public 22.40 29.80 31.60 32.60 32.40 26.40 24.80 17.60 n.a. 7 Held by agencies .10 .20 .20 .20 .10 .10 .10 .10 n.a. 8 Debt subject to statutory limit 2,921.70 2,988.90 3,077.00 3,161.20 3,281.70 3,377.10 3,450.30 3,569.30 3,706.80 9 Public debt securities 2,921.40 2,988.60 3,076.60 3,160.90 3,281.30 3,376.70 3,449.80 3,569.00 3,706.40 10 Other debt2 .30 .30 .40 .40 .40 .40 .40 .30 .40 11 MEMO: Statutory debt limit 3,122.70 3,122.70 3,122.70 3,195.00 4,145.00 4,145.00 4,145.00 4,145.00 4,145.00 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 1991 TTyyppee aanndd hhoollddeerr 11998888 11998899 11999900 11999911 Q1 Q2 Q3 Q4 1 Total gross public debt 2,684.4 2,953.0 3,364.8 3,801.7 3,465.2 3,538.0 3,665.3 3,801.7 By type 2 Interest-bearing 2,663.1 2,931.8 3,362.0 3,798.9 3,441.4 3,516.1 3,662.8 3,798.9 3 Marketable 1,821.3 1,945.4 2,195.8 2,471.6 2,227.9 2,268.1 2,390.7 2,471.6 4 Bills 414.0 430.6 527.4 590.4 533.3 521.5 564.6 590.4 5 Notes 1,083.6 1,151.5 1,265.2 1,430.8 1,280.4 1,320.3 1,387.7 1,430.8 6 Bonds 308.9 348.2 388.2 435.5 399.3 411.2 423.4 435.5 7 Nonmarketable2 841.8 986.4 1,166.2 1,327.2 1,213.5 1,248.0 1,272.1 1,327.2 8 State and local government series 151.5 163.3 160.8 159.7 159.4 161.0 158.1 159.7 9 Foreign issues 6.6 6.8 43.5 41.9 42.8 42.1 41.6 41.9 10 Government 6.6 6.8 43.5 41.9 42.8 42.1 41.6 41.9 11 Public .0 .0 .0 .0 .0 .0 .0 .0 12 Savings bonds and notes 107.6 115.7 124.1 135.9 127.7 131.3 133.5 135.9 13 Government account series4 575.6 695.6 813.8 959.2 853.1 883.2 908.4 959.2 14 Non-interest-bearing 21.3 21.2 2.8 2.8 23.8 21.9 2.5 2.8 By holder 5 15 U.S. Treasury and other federal agencies and trust funds 589.2 707.8 828.3 866.8 895.1 919.6 16 Federal Reserve Banks 238.4 228.4 259.8 247.3 255.1 264.7 17 Private investors 1,858.5 2,015.8 2,288.3 2,360.6 2,397.9 2,489.4 18 Commercial banks 193.8 174.8 188.2 194.8 204.2 214.0 19 Money market funds 11.8 14.9 45.4 65.7 55.2 64.5 20 Insurance companies 107.3 130.1 149.7 n.a. 149.3 155.1 157.0 n.a. 21 Other companies 87.1 93.4 108.9 114.9 130.8 142.0 22 State and local treasuries 313.6 338.7 329.6 329.5 327.0 326.0 Individuals 23 Savings bonds 109.6 117.7 126.2 129.7 133.2 135.4 24 Other securities 79.2 98.7 107.6 108.6 110.3 122.1 25 Foreign and international 362.2 392.9 423.2 430.7 441.2 444.8 26 Other miscellaneous investors 593.4 654.6 822.4 837.4 840.9 883.6 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 1992 1992, week ending IItteemm Nov. Dec. Jan. Jan. 1 Jan. 8 Jan. 15 Jan. 22 Jan. 29 Feb. 5 Feb. 12 Feb. 19 Feb. 26 IMMEDIATE TRANSACTIONS2 By type of security U.S. Treasury securities 1 Bills 36,252 30,957 37,212 26,080 37,021 47,436 33,151 32,335 32,442 3399,,225577 3377,,994488 3344,,882299 Coupon securities, by maturity 2 Less than 3.5 years 42,034 32,848 48,693r 18,599 35,863 59,975 49,491 51,138 4444,,885566 5511,,444488 5511,,330066 5500,,553300 3 3.5 to 7.5 years 33,385 29,975 43,820r 15,218 41,188 53,921 44,476 40,483 32,179 32,056 33,518 33,559 4 7.5 to 15 years 18,743r 14,037r 19,367r 7,663 16,713 24,708 18,752 18,515 16,010 21,845 18,904 14,364 5 15 years or more 18,559 14,504r 17,455r 8,949 16,784 21,137 18,481 14,787 14,548 13,809 19,831 11,672 Federal agency securities Debt, maturing in 6 Less than 3.5 years 4,089 4,636 5,301 4,359 6,009 3,562 5,060 6,276 55,,991188 66,,001177 44,,554400 66,,443311 7 3.5 to 7.5 years 700 610 652 226 704 678 663 620 515 733 500 563 8 7.5 years or more 85 r 72(y 681 275 611 885 597 622 664 545 424 633 Mortgage-backed securities 9 Pass-throughs 14,169 ll,891r 13,669 5,576 16,940 14,124 14,354 10,624 1100,,559933 1133,,556666 1133,,000033 1122,,770066 10 All others 2,934 2,657r 2,948 2,035 2,507 3,242 3,200 2,978 2,732 2,955 2,076 2,736 By type of counterparty Primary dealers and brokers 11 U.S. Treasury securities 93,742r 73,458 105,664 43,776 90,502 131,312 102,953 103,810 89,504 101,665 9988,,112255 9911,,772288 Federal agency securities 12 Debt l,335r 1,383 1,456 907 1,779 1,216 1,344 1,534 11,,228811 11,,991144 11,,003377 11,,443377 13 Mortgage-backed 8,245 6,227 7,284 2,714 8,691 7,142 8,303 5,818 5,748 7,257 5,957 7,212 Customers 14 U.S. Treasury securities 55,231 48,862r 60,884r 32,733 57,067 75,866 61,399 53,448 50,531 56,750 6633,,338811 5533,,222266 Federal agency securities 15 Debt 4,305 4,585r 5,178 3,953 5,546 3,909 4,976 5,984 55,,881166 55,,338811 44,,442277 66,,119911 16 Mortgage-backed 8,858 8,321r 9,332 4,897 10,756 10,224 9,251 7,784 7,576 9,265 9,121 8,230 FUTURE AND FORWARD TRANSACTIONS4 By type of deliverable security U.S. Treasury securities 17 Bills 3,740 3,295 4,078 1,576 5,801 3,125 3,157 4,234 3,601 3,313 33,,887700 44,,550033 Coupon securities, by maturity 18 Less than 3.5 years 1,673 1,801 2,177 1,130 1,619 2,600 2,131 2,552 11,,666677 11,,883366 22,,447700 11,,995555 19 3.5 to 7.5 years 864 1,096 1,446 495 1,220 1,851 1,390 1,477 1,032 1,118 1,172 1,528 20 7.5 to 15 years 1,224 1,052 1,720 844 1,372 2,078 1,859 1,680 1,516 2,639 2,077 1,365 21 15 years or more 10,328 7,264 11,407 4,200 10,160 14,160 11,839 10,259 9,653 8,985 12,313 9,614 Federal agency securities Debt, maturing in 22 Less than 3.5 years 94 119 67 12 4 28 228855 1177 1144 2222 1155 9977 23 3.5 to 7.5 years 73 39 75 6 10 160 71 55 79 50 88 49 24 7.5 years or more 63 30 26 14 7 51 38 8 33 103 2200 49 Mortgage-backed 25 Pass-throughs 12,374 9,105r 17,263 3,491r 16,120 22,000 14,748 15,722 17,163 18,787 12,576 11,909 26 Others 1,745 1,308 2,099 725 1,225 2,094 2,288 2,657 2,523 2,653 1,693 2,302 OPTION TRANSACTIONS5 By type of underlying security U.S. Treasury, coupon securities, by maturity 27 Less than 3.5 years 975 1,074 1,527 728 1,332 1,973 1,560 1,390 1,177 1,478 22,,662266 22,,119922 28 3.5 to 7.5 years 640 526 368 156 507 492 210 211 423 186 262 397 29 7.5 to 15 years 523 386 750 350 575 490 696 1,323 516 522 678 1,235 30 15 years or more 33,,448822 22,,001199 2,618 1,467 2,304 2,350 3,057 2,877 2,543 2,212 2,924 3,253 Federal agency, mortgagebacked securities 31 Pass-throughs 334 480 791 237 1,758 601 402 438 508 1,287 552 514 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 Nonfinancial Statistics • May 1992 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 1991 1992 1992, week ending IItteemm Nov. Dec.r Jan. Jan. 1 Jan. 8 Jan. 15 Jan. 22 Jan. 29 Feb. 5 Feb. 12 Feb. 19 Positions2 NET IMMEDIATE TRANSACTIONS3 By type of security U.S. Treasury securities 1 Bills 15,482 16,998 12,607 16,202 11,629 10,224 13,120 15,153 11,865 11,393 11,705 Coupon securities, by maturity 2 Less than 3.5 years 7,368 5,572 2,425 4,788 4,524 840 6,508 -1,623 --668800 55,,889944 11,,669911 3 3.5 to 7.5 years -8,509 -6,646 -7,485 -4,176 -2,328 -5,312 -11,486 -10,009 -11,956 -15,707 -14,980 4 7.5 to 15 years -3,844 -5,919 -6,185 -6,110 -7,638 -4,873 -6,086 -6,158 -6,176 -991 -3,090 5 15 years or more -7,296 -1,471 -1,643 -632 -455 -2,292 -2,049 -1,553 -2,932 -3,974 -279 Federal agency securities Debt, maturing in 6 Less than 3.5 years 4,099 4,474 4,190 3,508 2,951 4,005 4,130 5,175 6,285 5,989 6,673 7 3.5 to 7.5 years 2,314 2,720 3,536 2,696 2,856 3,527 3,795 3,961 3,975 4,163 4,483 8 7.5 years or more 4,231 3,711 3,597 3,492 3,656 3,572 3,648 3,503 3,683 3,667 3,455 Mortgage-backed securities 9 Pass-throughs 27,555 22,743 26,067 13,550 23,937 29,624 29,668 24,441 20,411 33,198 26,582 10 All others 15,780 17,578 18,947 20,119 20,670 18,725 18,717 17,374 19,413 17,234 15,774 Other money market instruments 11 Certificates of deposit 3,147 2,928 3,442 3,110 3,709 3,593 3,445 3,289 2,666 2,534 2,748 12 Commercial paper 6,194 5,420 5,228 4,361 4,253 5,653 5,833 5,352 5,036 6,541 6,357 13 Bankers acceptances 1,574 1,413 1,195 1,264 1,330 1,000 1,392 995 1,380 1,395 1,555 FUTURE AND FORWARD TRANSACTIONS5 By type of deliverable security U.S. Treasury securities 14 Bills -10,708 -9,264 -11,740 -8,082 -12,918 -11,273 -11,078 -12,426 -11,004 -9,993 -6,738 Coupon securities, by maturity 15 Less than 3.5 years 394 2,136 1,776 2,650 2,142 1,987 243 2,526 22,,006677 11,,774455 11,,558899 16 3.5 to 7.5 years -1,565 -571 2,550 -16 1,870 3,040 3,263 2,559 1,973 3,408 3,609 17 7.5 to 15 years -500 -655 576 -1,617 -34 224 1,740 599 889 224 -235 18 15 years or more -2,016 -5,094 -4,835 -4,746 -5,532 -4,306 -5,009 -4,643 -4,360 -3,301 -3,901 Federal agency securities Debt, maturing in 19 Less than 3.5 years 54 110 313 231 -14 300 1,061 14 --2288 --5544 --4499 20 3.5 to 7.5 years 16 117 127 135 187 39 317 15 -49 238 -5 21 7.5 years or more 94 28 17 58 -24 0 100 4 -38 166 -7 Mortgage-backed securities 22 Pass-throughs -14,580 -7,180 -7,750 4,041 -7,472 -13,065 -11,497 -2,399 -1,625 -17,100 -10,319 23 All others 1,883 1,457 2,511 338 1,365 1,867 3,429 3,922 1,710 4,339 4,430 24 Certificates of deposit -175,570 -192,213 -144,496 —196,901 -193,222 -135,563 -133,527 -116,867 -114,105 -118,244 -107,153 Financing6 Reverse repurchase agreements 75 Overnight and continuing 179,827r 169,965 203,915 163,041 203,686 210,043 208,845 195,723 221155,,112299 220000,,449900 222200,,669922 26 Term 254,314r 231,570 277,551 200,756 263,130 278,315 281,433 294,626 290,397 305,654 259,834 Repurchase agreements 77 Overnight and continuing 270,875r 271,474 320,613 243,273 314,115 332,437 332,730 313,548 332222,,995533 306,038 331,275 28 Term 255,438r 223,264 258,693 191,755 233,496 258,725 263,295 284,050 275,376 292,167 248,460 Securities borrowed 79 Overnight and continuing 62,159 62,441 68,625 63,168 65,749 68,424 69,153 70,190 74,802 73,806 72,487 30 Term 28,080 29,811 32,028 27,509 32,103 32,833 30,336 33,626 31,536 31,454 28,990 Securities loaned 31 Overnight and continuing 9,271 8,302 9,782 9,080 8,702 10,566 10,295 9,738 9,527 9,548 10,346 32 Term 1,363 897 1,556 1,364 834 1,249 833 3,436 1,201 1,049 1,238 Collateralized loans 33 Overnight and continuing 10,097 10,755 18,459 12,684 19,105 17,833 17,984 19,729 18,488 16,440 15,862 MEMO: Matched book7 Reverse repurchases 34 Overnight and continuing 124,380' 117,204 144,047 108,210 142,013 150,223 146,554 139,527 154,507 144,555 153,531 35 Term 207,593r 198,594 238,005 174,855 226,219 239,862 241,594 250,915 246,586 258,946 213,652 Repurchases 36 Overnight and continuing 137,078r 138,847 173,994 130,958 176,104 179,318 179,831 165,516 178,737 168,701 174,649 37 Term 193,403r 170,965 194,820 141,748 177,584 193,902 197,339 213,751 209,821 225,018 180,511 1. Data for positions and financing are obtained from reports submitted to the specify delayed delivery. All futures positions are included regardless of time to Federal Reserve Bank of New York by the U.S. government securities dealers on delivery. Forward contracts for U.S. Treasury securities and for federal agency its published list of primary dealers. Weekly figures are close-of-business Wednes- debt securities are included when the time to delivery is more than five business day data; monthly figures are averages of weekly data. Data for positions and days. Forward contracts for mortgage-backed securities are included when the financing are averages of close-of-business Wednesday data. time to delivery is more than thirty days. 2. Securities positions are reported at market value. 6. Overnight financing refers to agreements made on one business day that 3. Net immediate positions include securities purchased or sold (other than mature on the next business day; continuing contracts are agreements that remain mortgage-backed agency securities) that have been delivered or are scheduled to in effect for more than one business day but have no specific maturity and can be be delivered in five business days or less and "when-issued" securities settle on terminated without advance notice by either party; term agreements have a fixed the issue date of offering. Net immediate positions of mortgage-backed securities maturity of more than one business day . include securities purchased or sold that have been delivered or are scheduled to 7. Matched-book data reflect financial intermediation activity in which the be delivered in thirty days or less. borrowing and lending transactions are matched. Matched-book data are included 4. Includes securities such as collateralized mortgage obligations (CMOs), real in the financing breakdowns given above. The reverse repurchase and repurchase estate mortgage investment conduits (REMICs), interest only (IOs), and principal numbers are not always equal because of the "matching" of securities of different only (POs). values or types of collateralization. Digitized for FR5A. SFuEtuRre s positions are standardized contracts arranged on an exchange. NOTE. Data for future and forward commercial paper and bankers' acceptances and Forward positions reflect agreements made in the over-the-counter market that term financing of collateralized loans are no longer available because of insufficient activity. 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 Agency 1988 1989 Aug. Sept. Nov. Dec. 1 Federal and federally sponsored agencies 381,498 411,805 434,668 442,772 437,942 436,189 438,032 439,670 442,772 2 Federal agencies 35,668 35,664 42,159 41,035 40,923 42,409 42,638 42,951 41,035 3 Defense Department 8 7 7 7 7 7 7 7 7 4 Export-Import Bank2,3 11,033 10,985 11,376 9,809 11,244 11,267 11,267 11,267 9,809 5 Federal Housing Administration 150 328 393 397 315 336 337 365 397 6 Government National Mortgage Association participation certificates 0 0 0 0 0 0 0 0 0 7 Postal Service 6,142 6,445 6,948 8,421 6,621 8,421 8,421 8,421 8,421 8 Tennessee Valley Authority 18,335 17,899 23,435 22,401 22,745 22,378 22,606 22,891 22,401 9 United States Railway Association6 0 0 0 0 0 0 0 0 0 10 Federally sponsored agencies7 345,830 375,407 392,509 401,737 397,019 393,780 395,394 396,719 401,737 11 Federal Home Loan Banks 135,836 136,108 117,895 107,543 107,469 106,510 105,945 107,344 107,543 12 Federal Home Loan Mortgage Corporation 22,797 26,148 30,941 30,262 31,650 31,502 31,818 31,099 30,262 13 Federal National Mortgage Association 105,459 116,064 123,403 133,937 128,589 127,460 128,594 130,197 133,937 14 Farm Credit Banks8 53,127 54,864 53,590 52,199 52,056 52,010 52,488 52,105 52,199 15 Student Loan Marketing Association9 22,073 28,705 34,194 38,319 37,778 36,821 37,072 36,497 38,319 16 Financing Corporation 5,850 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 17 Farm Credit Financial Assistance Corporation 690 847 1,261 1,261 1,261 1,261 1,261 1,261 1,261 18 Resolution Funding Corporation12 0 4,522 23,055 29,996 29,996 29,996 29,996 29,9% 29,996 MEMO 19 Federal Financing Bank debt13 142,850 134,873 179,083 185,576 188,920 194,234 192,747 194,837 185,576 Lending to federal and federally sponsored agencies 20 Export-Import Bank 11,027 10,979 11,370 9,803 11,238 11,261 11,261 11,261 9,803 21 Postal Service6 5,892 6,195 6,698 8,201 6,401 8,201 8,201 8,201 8,201 22 Student Loan Marketing Association 4,910 4,880 4,850 4,820 4,850 4,850 4,820 4,820 4,820 23 Tennessee Valley Authority 16,955 16,519 14,055 10,725 12,373 11,875 11,375 11,375 10,725 24 United States Railway Association6 0 0 0 0 0 0 0 0 0 Other Lending14 25 Farmers Home Administration 58,496 53,311 52,324 48,534 51,334 50,694 48,534 48,534 48,534 26 Rural Electrification Administration 19,246 19,265 18,890 18,562 18,846 18,597 18,599 18,628 18,562 27 Other 26,324 23,724 70,896 84,931 83,878 88,756 89,957 92,018 84,931 1. Consists of mortgages assumed by the Defense Department between 1957 shown on line 22. and 1%3 under family housing and homeowners assistance programs. 10. The Financing Corporation, established in August 1987 to recapitalize the 2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976. Federal Savings and Loan Insurance Corporation, undertook its first borrowing in 3. On-budget after Sept. 30, 1976. October 1987. 4. Consists of debentures issued in payment of Federal Housing Administration 11. The Farm Credit Financial Assistance Corporation, established in January insurance claims. Once issued, these securities may be sold privately on the 1988 to provide assistance to the Farm Credit System, undertook its first securities market. borrowing in July 1988. 5. Certificates of participation issued before fiscal 1%9 by the Government 12. The Resolution Funding Corporation, established by the Financial Institu- National Mortgage Association acting as trustee for the Farmers Home Admin- tions Reform, Recovery, and Enforcement Act of 1989, undertook its first istration; Department of Health, Education, and Welfare; Department of Housing borrowing in October 1989. and Urban Development; Small Business Administration; and the Veterans 13. The FFB, which began operations in 1974, is authorized to purchase or sell Administration. obligations issued, sold, or guaranteed by other federal agencies. Since FFB 6. Off-budget. incurs debt solely for the purpose of lending to other agencies, its debt is not 7. Includes outstanding noncontingent liabilities: notes, bonds, and deben- included in the main portion of the table in order to avoid double counting. tures. Some data are estimated. 14. Includes FFB purchases of agency assets and guaranteed loans; the latter 8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, contain loans guaranteed by numerous agencies with the guarantees of any shown in line 17. particular agency being generally small. The Farmers Home Administration item 9. Before late 1982, the Association obtained financing through the Federal consists exclusively of agency assets, while the Rural Electrification Administra- Financing Bank (FFB). Borrowing excludes that obtained from the FFB, which is tion entry contains both agency assets and guaranteed loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • May 1992 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1991 1992 TTyyppee ooff ii oo ss rr ss uu uu ee ss ee oo rr iissssuueerr,, 11998899 11999900 11999911 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. 1 All issues, new and refunding' 113,646 120,339 154,402 11,629 15,744 13,240 11,357 17,734 15,796 12,612r 12,256 By type of issue 2 General obligation 35,774 39,610 55,100 3,900 5,919 5,253 3,088 6,510 5,871 3,954 5,643 3 Revenue 77,873 81,295 99,302 7,729 9,825 7,987 8,269 11,224 9,925 8,658* 6,613 By Type of issuer 4 State 11,819 15,149 24,939 650 2,328 3,371 7,195 1,171 1,671 1,036 3,021 5 Special district or statutory authority2 71,022 72,661 80,614 7,320 8,890 6,272 605 10,817 9,435 8,243 5,162 6 Municipality, county, or township 30,805 32,510 48,849 3,659 4,526 3,597 3,557 5,746 4,690 3,333 4,073 7 Issues for new capital, total 84,062 103,235 116,953 9,513 12,164 9,586 8,967 13,495 12,020 7,127r 7,691 By use of proceeds 8 Education 15,133 17,042 21,664 2,033* 1,585* 1,507* 1,511* 1,297 1,924 2,385 1,974 9 Transportation 6,870 11,650 13,395 629*" 72(V 1,248r l,744r 2,682 488 1,194 1,643 10 Utilities and conservation 11,427 11,739 21,447 1,763* 1,673* 1,573* 1,825* 1,915 1,931 1,953 894 11 Social welfare 16,703 23,099 26,121 1,986* 4,119* 2,793* 1,276* 2,621 3,070 868 1,683 12 Industrial aid 5,036 6,117 8,542 511* 676* 916* 973* 349 1,083 218 141 13 Other purposes 28,894 34,607 n.a. 2,591* 3,391* 1,549* 1,638* 4,631 3,524 n.a.* n.a. 1. Par amounts of long-term issues based on date of sale. SOURCES. Investment Dealer's Digest beginning April 1990. Securities Data/ 2. Since 1986, has included school districts. Bond Buyer Municipal Data Base beginning 1986. Public Securities Association for earlier data. 1.46 NEW SECURITY ISSUES U.S. Corporations Millions of dollars 1991 1992 Type of o r is s is u s e u , e o r f fering, 1989 1991 July Aug. Sept. Oct. Jan. 1 AH issues 378,760 340,197 379,560 31,837 23,155r 35,441* 32,180 34,893 34,286r 32,391r 41,183 2 Bonds2 320,889 299,959 389,876r 26,219 20,473r 28,71lr 26,759 26,029 25,233* 24,871r 34,385 By type of offering 3 Public, domestic 180,572r 189,685r 286,945r 23,797 18,899* 26,836* 23,856 23,469 23,164* 23,326* 34,000 4 Private placement, domestic . 117,420 86,988 74,930 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5 Sold abroad 22,851 23,054 27,192 2,422 1,574 1,875 2,902 2,560 2,070 1,544* 3,800 By industry group 6 Manufacturing 76,456 53,110 85,490* 4,260 3,600 7,643 6,949 4,732 4,536 4,956 7,215 7 Commercial and miscellaneous 49,615 40,019 37,854r 1,773 1,500 1,388 1,012 1,209 2,044 1,977 2,155 8 Transportation 10,032 12,818 13,628r 567 697 809 231 744 180 150 342 9 Public utility 18,696 17,621 23,984r 1,644 1,457 1,897 1,315 1,430 3,073* 2,238 3,150 10 Communication 8,461 6,597 9,331r 1,838 749 668 408 958 226 1,085 2,450 11 Real estate and financial 157,629 169,789 219,590* 16,138 12,471* 16,306* 16,844 16,957 15,175 14,464* 19,073 12 Stocks2 57,870 40,177 75,474 5,618 2,682 6,730 5,421 8,864 9,053 7,520 6,798 By type of offering 13 Public preferred 6,194 3,998 17,458 1,731 203 1,952 666 3,527 3,240 2,771 739 14 Common 26,030 19,443 47,900 3,887 2,479 4,778 4,755 5,337 5,813 4,749 6,060 15 Private placement3 25,647 16,747 10,116 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. By industry group 16 Manufacturing 9,308 5,649 n.a. 1,909 685 3,167 1,842 3,623 4,054 2,684 2,040 17 Commercial and miscellaneous 7,446 10,171 n.a. 851 1,427 2,050 858 2,095 2,158 2,535 1,233 18 Transportation 1,929 369 n.a. 0 18 56 0 16 0 0 426 19 Public utility 3,090 416 n.a. 471 143 150 55 320 174 233 200 20 Communication 1,904 3,822 n.a. 295 46 8 0 25 84 17 163 21 Real estate and financial 34,028 19,738 n.a. 2,091 350 1,298 2,666 2,622 2,583 2,014 2,689 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 1992 IItteemm11 11999900 11999911 June July Aug. Sept. Oct. Nov. Dec.r Jan. 344,420 464,488 33,922 39,329 38,014 37,316 45,218 41,365 51,018 65,306 288,441 342,088 27,629 28,767 28,128 26,319 27,957 28,454 39,050 41,787 55,979 122,400 6,293 10,562 9,886 10,997 17,261 12,911 11,968 23,519 568,517 807,001 661,643 690,486 712,782 730,426 753,344 752,798 807,077 820,296 5 Cash5 48,638 60,937 55,057 55,293 52,791 53,884 59,902 59,689 60,292 61,876 6 Other 519,875 746,064 606,586 635,193 659,992 676,543 695,492 693,109 746,785 758,420 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 report sof membership, 2. Includes reinvestment of dividends. Excludes reinvestment of capital gains which comprises substantially all open-end investment companies registered with distributions. the Securities and Exchange Commission. Data reflect underwritings of new 3. Does not includes sales or redemptions resulting from transfers of shares companies. into or out of money market mutual funds within the same fund family. 1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION Billions of dollars; quarterly data at seasonally adjusted annual rates 1990 1991 AAccccoouunntt 11998899 11999900 11999911 Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 1 Profits with inventory valuation and capital consumption adjustment 351.7 319.0 307.1 340.2 339.8 299.8 296.1 302.1 303.5 306.1 316.6 2 Profits before taxes 344.5 332.3 312.7 336.6 331.6 335.1 326.1 309.1 306.2 318.2 317.2 3 Profits tax liability 138.0 135.3 124.6 137.6 137.9 138.8 127.1 119.4 123.5 128.6 126.9 4 Profits after taxes 206.6 197.0 188.1 199.1 193.7 196.3 199.0 189.7 182.7 189.6 190.3 127.9 133.7 137.8 132.3 132.5 133.8 136.2 137.8 136.7 138.1 138.5 6 Undistributed profits 78.7 63.3 50.3 66.7 61.2 62.5 62.8 51.9 46.1 51.5 51.7 7 Inventory valuation -17.5 -14.2 3.1r -6.6 3.8 -32.6 -21.2 6.7 9.9 -4.8 ,7r 8 Capital consumption adjustment 24.7 .8 -8.7r 10.2 4.4 -2.7 -8.8 -13.6 -12.6 -7.3 -1.3r 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 19911 19921 IInndduussttrryy 11999900 11999911 1199992211 Q2 Q3 Q4 Ql 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 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 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 • May 1992 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities Billions of dollars, end of period; not seasonally adjusted 1990 1991 AAccccoouunntt 11998877 11998888 11998899 Q1 Q2 Q3 Q4 Q1 Q2 Q3 ASSETS 1 Accounts receivable, gross1 388.1 426.2 445.7 452.8 468.8 474.0 486.7 478.9 487.9 487.8 2 Consumer 141.1 146.2 140.8 137.9 138.6 140.9 136.0 131.6 133.9 132.5 3 Business 207.4 236.5 256.0 262.9 274.8 275.4 290.8 290.0 295.5 296.6 4 Real estate 39.5 43.5 48.9 52.1 55.4 57.7 59.9 57.3 58.5 58.7 5 LESS: Reserves for unearned income 45.3 50.0 52.0 51.9 54.3 55.1 56.6 57.0 58.7 59.6 6 Reserves for losses 6.8 7.3 7.7 7.9 8.2 8.6 9.2 10.3 10.8 12.9 7 Accounts receivable, net 336.0 368.9 386.1 393.0 406.3 410.3 420.9 411.6 418.4 415.2 8 All other 58.3 72.4 91.6 92.5 95.5 102.8 99.6 103.4 106.1 111.9 9 Total assets 394.2 441.3 477.6 485.5 501.9 513.1 520.6 515.0 524.5 527.1 LIABILITIES AND CAPITAL 10 Bank loans 16.4 15.4 14.5 13.9 15.8 15.6 19.4 22.0 22.7 24.0 11 Commercial paper 128.4 142.0 149.5 152.9 152.4 148.6 152.7 141.2 140.6 138.1 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 70.5 72.8 82.0 82.7 77.8 81.7 87.4 15 Not elsewhere classified n.a. 137.9 147.8 145.7 153.0 156.6 157.0 162.4 164.2 163.4 16 All other liabilities 52.8 59.8 62.6 61.7 66.1 68.7 66.0 68.0 72.2 72.1 17 Capital, surplus, and undivided profits 31.5 35.6 39.4 40.7 41.8 41.6 42.8 43.7 43.0 42.1 18 Total liabilities and capital 394.2 441.3 477.6 485.5 501.9 513.1 520.6 515.0 524.5 527.1 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 1992 TTyyppee ooff ccrreeddiitt Aug. Sept. Oct. Nov. Dec. Jan. 1 Total 258,957 292,638 309,709 305,024 307,599 310,876 311,632 309,709 306,905 Retail financing of installment sales 2 Automotive 39,479 38,110 33,204 34,665 34,119 34,167 33,664 33,204 31,764 3 Equipment 29,627 31,784 35,404 33,146 34,822 33,989 33,375 35,404 33,841 4 Pools of securitized assets 698 951 819 833 797 769 746 819 879 Wholesale 5 Automotive 33,814 32,283 32,487 30,637 30,072 31,831 32,292 32,487 31,788 6 Equipment 6,928 11,569 9,790 10,631 10,594 11,075 10,414 9,790 9,274 7 All other 9,985 9,126 8,459 8,712 8,695 8,407 8,418 8,459 8,072 8 Pools of securitized assets2 0 2,950 4,905 3,508 4,053 4,458 4,639 4,905 4,661 Leasing 9 Automotive 26,804 39,129 44,445 44,628 45,387 45,837 45,299 44,445 44,277 10 Equipment 68,240 75,626 87,821 86,145 86,732 87,701 90,079 87,821 88,849 11 Pools of securitized assets 1,247 1,849 1,820 1,679 1,844 1,803 1,885 1,820 1,837 12 Loans on commercial accounts receivable and factored commercial accounts receivable 18,511 22,475 23,859 23,366 23,204 23,295 23,338 23,859 24,600 13 All other business credit 23,623 26,784 26,697 27,073 27,279 27,544 27,483 26,697 27,062 Net change (during period) 1 24,066 33,681 17,071 4,862 2,576 3,277 756 -1,923 -2,804 Retail financing of installment sales 7 Automotive 2,269 -1,369 -4,906 -825 --554477 48 -503 -460 --11,,444400 3 Equipment 1,442 2,157 3,619 952 1,676 -833 -614 2,029 -1,562 4 Pools of securitized assets -26 253 -132 40 -36 -28 -23 73 60 Wholesale 5 Automotive 861 -1,532 204 1,183 -564 1,759 461 195 -699 6 Equipment 957 4,641 -1,779 -713 -37 481 -662 -624 -516 7 All other 628 -859 -668 -95 -17 -289 11 41 -387 8 Pools of securitized assets 0 2,950 1,955 665 545 405 181 266 -244 Leasing 9 Automotive 2,111 12,325 5,316 1,604 759 450 -538 -854 -168 10 Equipment 10,581 7,386 12,195 1,834 587 969 2,378 -2,258 1,028 11 Pools of securitized assets 526 602 -29 -71 165 -41 82 -65 17 12 Loans on commercial accounts receivable and factored commercial accounts receivable 825 3,964 1,383 240 -162 91 43 520 741 13 All other business credit 2,446 3,161 -87 47 207 264 -60 -786 366 Digitized for FRASER http://fraser.stlou1.i sDfaetda .ion rtgh/is table also appear in the Board's G.20 (422) monthly statistical 2. Data on pools of securitized assets are not seasonally adjusted, release. For ordering 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 1992 IItteemm 11998899 11999900 11999911 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms1 1 Purchase price (thousands of dollars) 159.6 153.2 155.0 159.0 157.8 153.4 162.6 159.1 153.9 154.7 2 Amount of loan (thousands of dollars) 117.0 112.4 114.0 115.7 114.3 115.0 116.0 113.8 114.9 110.2 3 Loan-price ratio (percent) 74.5 74.8 75.0 74.6 73.3 76.5 73.5 73.1 75.2 72.9 4 Maturity (years) 28.1 27.3 26.8 27.1 25.9 27.5 26.4 26.4 26.2 24.5 5 Fees and charges (percent of loan amount)2 2.06 1.93 1.71 1.74 1.86 1.61 1.53 1.50 1.85 1.84 6 Contract rate (percent per year) 9.76 9.68 9.02 9.19 9.00 8.78 8.38 8.28 8.17 8.29 Yield (percent per year) 7 OTS series' 10.11 10.01 9.30 9.48 9.30 9.04 8.64 8.53 8.49 8.65 8 HUD series4 10.21 10.08 9.20 9.22 8.88 8.76 8.67 8.30 8.69 8.74 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (HUD series)5 10.24 10.17 9.25 9.14 9.06 8.71 8.69 8.10 8.72 8.74 10 GNMA securities6 9.71 9.51 8.59 8.69 8.60 8.34 8.09 7.81 7.81 8.01 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 104,974 113,329 122,837 124,230 124,954 125,884 126,624 128,983 131,058 133,399 12 FHA/VA-insured 19,640 21,028 21,702 21,529 21,636 21,576 21,547 21,7% 21,981 21,980 13 Conventional 85,335 92,302 101,135 102,701 103,318 104,308 105,077 107,187 109,077 111,419 Mortgage transactions (during period) 14 Purchases 22,518 23,959 37,202 3,069 3,032 3,408 3,299 5,114 4,809 5,358 Mortgage commitments (during period)1 15 Issued® n.a. 23,689 40,010 3,453 3,1% 4,122 3,806 5,285 7,202 6,639 16 To sell9 n.a. 5,270 7,608 1,051 762 917 569 78 249 343 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)9 17 Total 20,105 20,419 n.a. 24,217 23,906 24,922 25,239 n.a. n.a. n.a. 18 FHA/VA-insured 590 547 n.a. 475 471 462 468 n.a. n.a. n.a. 19 Conventional 19,516 19,871 n.a. 23,742 23,435 24,460 24,772 n.a. n.a. n.a. Mortgage transactions (during period) 20 Purchases 78,588 75,517 n.a. 9,191 9,155 8,644 10,170 n.a. n.a. n.a. 21 Sales 73,446 73,817 92,870 8,803 9,305 7,449 9,545 9,929 10,597 12,061 Mortgage commitments (during period)10 22 Contracted 88,519 102,401 n.a. 12,430 7,468 6,358 11,594 n.a. 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 • May 1992 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1990 1991 TTyyppee ooff hhoollddeerr aanndd pprrooppeerrttyy 11998888 11998899 11999900 Q4 Ql Q2 Q3" Q4P 1 All holders 3,270,118 3,676,616r 3,912,217r 3,912,217r 3,947,700r 3,999,621' 4,016,644 4,048,767 By type of property 2 One- to four-family residences 2,201,231 2,549,935r 2,765,111 2,765,111 2,790,684r 2,837,989" 2,870,100 2,904,287 3 Multifamily residences 291,405 303,416 307,069r 307,069r 310,746r 311,817" 308,357 310,276 4 Commercial 692,236 739,240 756,075 756,075 762,328r 766,043" 755,041 750,473 5 85,247 84,025 83,962 83,962 83,942r 83,771" 83,145 83,730 By type of holder 6 Major financial institutions 1,831,472 1,931,537 1,913,945 1,913,945 1,902,050 1,898,114 1,860,161 1,845,625 7 Commercial banks 674,003 767,069 844,456 844,456 856,499 871,222 870,726 875,914 8 One- to four-family 334,367 389,632 455,698 455,698 461,916r 476,188" 478,678 484,5% 9 Multifamily 33,912 38,876 37,008 37,008 38,379" 37,562" 36,394 37,523 10 Commercial 290,254 321,906 334,520 334,520 338,697r 339,433" 337,331 335,357 11 Farm 15,470 16,656 17,231 17,231 17,507 18,039 18,323 18,438 12 Savings institutions3 924,606 910,254 801,628 801,628 776,551 755,219 719,341 698,754 13 One- to four-family 671,722 669,220 600,154 600,154 583,694 570,044 547,455 533,850 14 Multifamily 110,775 106,014 91,806 91,806 88,743 86,448 81,880 79,344 15 Commercial 141,433 134,370 109,168 109,168 103,647 98,280 89,603 85,183 16 Farm 676 650 500 500 468 447 402 377 17 Life insurance companies 232,863 254,214 267,861 267,861 269,000 271,674 270,094 270,958 18 One- to four-family 11,164 12,231 13,005 13,005 11,737 11,743 11,720 11,763 19 Multifamily 24,560 26,907 28,979 28,979 29,493 30,006 29,%2 30,115 20 Commercial 187,549 205,472 215,121 215,121 216,768 219,204 218,179 218,111 21 Farm 9,590 9,604 10,756 10,756 11,001 10,721 10,233 10,968 22 Finance companies4 37,846 45,476 48,777 48,777 48,187 48,972 50,658 51,567 23 Federal and related agencies 200,570 209,498 250,761 250,761 264,189 276,798 283,455 282,731 24 Government National Mortgage Association 26 23 20 20 22 22 22 23 25 One- to four-family 26 23 20 20 22 22 22 23 26 Multifamily 0 0 0 0 0 0 0 0 27 Farmers Home Administration 42,018 41,176 41,439 41,439 41,307 41,430 41,566 41,713 28 One- to four-family 18,347 18,422 18,527 18,527 18,522 18,521 18,598 18,4% 29 Multifamily 8,513 9,054 9,640 9,640 9,720 9,898 9,990 10,141 30 Commercial 5,343 4,443 4,690 4,690 4,715 4,750 4,829 4,905 31 Farm 9,815 9,257 8,582 8,582 8,350 8,261 8,149 8,171 32 Federal Housing and Veterans Administration 5,973 6,087 8,801 8,801 9,492 10,210 11,395 12,744 33 One- to four-family 2,672 2,875 3,593 3,593 3,600 3,729 3,948 4,384 34 Multifamily 3,301 3,212 5,208 5,208 5,891 6,480 7,446 8,360 35 Federal National Mortgage Association 103,013 110,721 116,628 116,628 119,1% 122,806 125,451 128,578 36 One- to four-family 95,833 102,295 106,081 106,081 108,348 111,560 113,6% 116,336 37 Multifamily 7,180 8,426 10,547 10,547 10,848 11,246 11,755 12,242 38 Federal Land Banks 32,115 29,640 29,416 29,416 29,253 29,152 29,053 28,970 39 One- to four-family 1,890 1,210 1,838 1,838 1,884 2,041 2,124 2,225 40 Farm 30,225 28,430 27,577 27,577 27,368 27,111 26,929 26,745 41 Federal Home Loan Mortgage Corporation 17,425 21,851 21,857 21,857 23,221 23,649 23,906 24,881 42 One- to four-family 15,077 18,248 19,185 19,185 20,570 21,120 21,489 22,529 43 Multifamily 2,348 3,603 2,672 2,672 2,651 2,529 2,417 2,352 44 Mortgage pools or trusts6 811,847 946,766 1,110,555 1,110,555 l,144,876r 1,186,251" 1,228,788 1,272,155 45 Government National Mortgage Association 340,527 368,367 403,613 403,613 409,929 413,707 422,501 429,772 46 One- to four-family 331,257 358,142 391,505 391,505 397,631 401,304 409,826 416,425 47 Multifamily 9,270 10,225 12,108 12,108 12,298 12,403 12,675 13,347 48 Federal Home Loan Mortgage Corporation 226,406 272,870 316,359 316,359 328,215 341,132 348,843 361,785 49 One- to four-family 219,988 266,060 308,369 308,369 319,978 332,624 341,183 354,214 50 Multifamily 6,418 6,810 7,990 7,990 8,237 8,509 7,660 7,571 51 Federal National Mortgage Association 178,250 228,232 299,833 299,833 312,101 331,089 351,917 372,107 52 One- to four-family 172,331 219,577 291,194 291,194 303,554 322,444 343,430 363,615 53 Multifamily 5,919 8,655 8,639 8,639 8,547 8,645 8,487 8,492 54 Farmers Home Administration 104 80 66 66 62 55" 52 47 55 One- to four-family 26 21 17 17 14 13 12 11 56 Multifamily 0 0 0 0 0 0 0 0 57 Commercial 38 26 24 24 23 21" 20 19 58 Farm 40 33 26 26 24 21" 20 17 59 Individuals and others7 426,229 588,815r 636,955r 636,955r 636,585r 638,457" 644,241 648,256 60 One- to four-family 259,971 414,763r 449,440 449,440 447,344r 447,339" 451,988 454,841 61 Multifamily 79,209 81,634 84,408r 84,408r 84,227r 83,452" 83,740 83,772 62 Commercial 67,618 73,023 83,816 83,816 85,790r 88,495" 89,424 90,628 63 Farm 19,431 19,395 19,291 19,291 19,224r 19,171" 19,089 19,014 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 1992 HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt 11998888 11998899 11999900 Aug. Sept. Oct. Nov. Dec.r Jan. Seasonally adjusted 11 TToottaall 664,049 718,863 735,102 729,108 729,152 730,317 730,147 729,420 729,237 22 AAuuttoommoobbiillee 284,214 290,676 284,585 271,906 270,219 270,013 268,123 267,909 268,241 33 RReevvoollvviinngg 174,104 199,082 220,110 229,453 232,070 233,661 234,666 234,504 234,803 44 MMoobbiillee hhoommee 25,348 22,471 20,919 19,495 18,892 18,943 19,059 19,116 18,663 55 OOtthheerr 180,383 206,633 209,487 208,253 207,971 207,700 208,300 207,891 207,529 Not seasonally adjusted 6 Total 674,855 730,901 748,300 731,531 732,183 730,722 732,256 743,548 733,019 By major holder 7 Commercial banks 324,792 342,770 347,466 335,662 335,509 335,258 334,904 340,930 333355,,660088 8 Finance companies 146,212 140,832 137,450 135,509 132,471 131,778 130,679 129,566 126,677 9 Credit unions 88,340 93,114 92,911 92,843 93,305 92,746 92,373 92,779 92,035 10 48,438 44,154 43,552 37,296 37,281 37,359 38,651 43,130 40,580 11 Savings institutions 63,399 57,253 45,616 37,893 37,036 37,424 36,987 36,014 35,227 17 Gasoline companies 3,674 3,935 4,822 4,857 4,753 4,529 4,388 4,362 4,377 13 Pools of securitized assets n.a. 48,843 76,483 87,471 91,829 91,628 94,274 %,767 98,515 By major type of credit3 14 Automobile 284,328 290,705 284,813 274,190 273,354 272,092 268,927r 268,284 266,873 15 Commercial banks 123,392 126,288 126,259 120,577 119,730 119,276 118,502 117,494 116,661 16 Finance companies 97,245 82,721 74,396 71,571 69,853 69,364 67,907 66,549 65,151 17 Pools of securitized assets 0 18,235 24,537 25,071 26,808 26,803 26,237 27,997 29,431 18 Revolving 184,045 210,310 232,370 229,224 231,281 231,862 235,674 247,519 239,006 19 123,020 130,811 132,433 125,787 125,524 126,234 125,734 132,625 126,753 70 Retailers 43,833 39,583 39,029 32,962 32,964 33,055 34,319 38,652 36,169 71 Gasoline companies 3,674 3,935 4,822 4,857 4,753 4,529 4,388 4,362 4,377 22 Pools of securitized assets n.a. 23,477 44,335 54,017 56,438 56,290 59,459 60,139 60,038 73 Mobile home 25,143 22,240 20,666 19,468 18,9% 19,026 19,021 18,877 18,822 74 Commercial banks 9,025 9,112 9,763 9,534 9,614 9,600 9,656 9,552 9,644 25 Finance companies 7,191 4,716 5,252 5,700 5,300 5,358 5,401 5,520 5,509 76 Other 181,339 207,646 210,451 208,649 208,553 207,742 208,633 208,868 208,318 77 Commercial banks 69,355 76,559 79,011 79,764 80,641 80,148 81,012 81,259 82,550 28 Finance companies 41,776 53,395 57,801 58,238 57,318 57,056 57,371 57,497 56,017 79 Retailers 4,605 4,571 4,523 4,334 4,317 4,304 4,332 4,478 4,411 30 Pools of securitized assets n.a. 7,131 7,611 8,383 8,583 8,535 8,578 8,631 9,046 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 NonfinancialS tatistics • May 1992 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1 Percent per year, except as noted 1991 1992 IItteemm 11998899 11999900 11999911 July Aug. Sept. Oct. Nov. Dec. Jan. INTEREST RATES Commercial banks2 1 48-month new car3 12.07 11.78 11.14 n.a. 11.06 n.a. n.a. 10.61 n.a. n.a. 2 24-month personal 15.44 15.46 15.18 n.a. 15.24 n.a. n.a. 14.88 n.a. n.a. 3 120-month mobile home 14.11 14.02 13.70 n.a. 13.73 n.a. n.a. 13.37 n.a. n.a. 4 Credit card 18.02 18.17 18.23 n.a. 18.24 n.a. n.a. 18.19 n.a. n.a. Auto finance companies 5 New car 12.62 12.54 12.41 12.55 12.40 12.38 12.23 1100..7799 10.41 1100..0044 6 Used car 16.18 15.99 15.60 15.66 15.63 15.60 15.46 15.06 14.90 14.34 OTHER TERMS4 Maturity (months) 7 New car 54.2 54.6 55.1 55.5 55.4 55.4 55.4 54.1 53.7 5533..55 8 Used car 46.6 46.1 47.2 47.4 47.2 47.2 47.0 47.0 46.9 48.4 Loan-to-value ratio 9 New car 91 87 88 88 88 87 88 88 88 89 10 Used car 97 95 96 96 97 96 97 % 93 97 Amount financed (dollars) 11 New car 12,001 12,071 12,494 12,572 12,518 12,460 12,684 13,245 13,476 13,135 12 Used car 7,954 8,289 8,884 8,989 8,902 8,9% 9,077 9,029 9,105 9,007 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 Q4 Qi Q2 Q3 Q4 Ql Q2 Nonfinandal sectors 1 Total net borrowing by domestic nonfinandal sectors .. 836.9 687.0 760.8 678.2 639.3 620.2 803.4 596.9 657.7 499.3 411.4 462.6 By lending sector and instrument 7 U.S. government 215.0 144.9 157.5 151.6 272.5 185.0 247.3 228.2 286.1 332288..44 220044..77 224411..88 Treasury securities 214.7 143.4 140.0 150.0 264.4 189.6 217.8 222.9 287.5 329.4 228.7 248.0 4 Agency issues and mortgages .4 1.5 17.4 1.6 8.2 -4.6 29.6 5.4 -1.3 -1.0 -24.0 -6.2 5 Private 621.9 542.1 603.3 526.6 366.8 435.2 556.1 368.7 371.6 170.9 206.7 220.9 By instrument 6 Debt capital instruments 465.8 453.2 459.2 379.8 298.2 347.0 391.0 309.3 275.5 221166..88 223300..55 229922..77 7 Tax-exempt obligations 22.7 49.3 49.8 30.4 20.1 19.1 12.4 24.5 30.0 13.5 11.3 27.5 8 Corporate bonds 126.8 79.4 102.9 73.7 49.7 87.4 30.2 68.8 32.8 67.1 80.6 95.3 9 Mortgages 316.3 324.5 306.5 275.7 228.3 240.5 348.4 216.0 212.7 136.3 138.6 169.9 10 Home mortgages 218.7 234.9 231.0 218.0 212.6 214.3 298.7 220.0 184.7 147.1 136.8 176.6 11 Multifamily residential 33.5 24.4 16.7 16.4 6.5 9.5 22.7 -15.5 16.2 2.7 4.6 2.9 1? Commercial 73.6 71.6 60.8 42.7 9.3 19.9 26.5 13.4 9.9 -12.8 -3.0 -8.0 n Farm -9.5 -6.4 -2.1 -1.5 .0 -3.2 .5 -1.9 2.0 -.7 .2 -1.6 14 Other debt instruments 156.1 88.9 144.1 146.8 68.7 88.2 165.1 59.4 96.0 -45.9 -23.8 -71.9 IS Consumer credit 58.0 33.5 50.2 39.1 14.3 44.1 30.4 2.8 21.3 2.5 -23.6 -20.4 16 Bank loans n.e.c 66.9 10.0 39.8 39.9 1.3 7.7 16.3 15.4 -2.5 -24.2 14.2 -51.6 17 Open market paper -9.3 2.3 11.9 20.4 9.7 -6.9 69.6 -6.2 17.3 -41.7 5.1 -22.6 18 Other 40.5 43.2 42.2 47.4 43.4 43.3 48.8 47.4 60.0 17.5 -19.5 22.6 By borrowing sector 19 State and local government 36.2 48.8 45.6 29.6 17.2 16.5 1166..00 1177..22 2288..11 77..66 1122..22 1166..88 70 293.0 302.2 314.9 285.0 254.0 291.8 377.2 257.5 227.3 154.0 162.6 199.7 71 Nonfinandal business 292.7 191.0 242.8 211.9 95.6 126.9 162.9 94.0 116.2 9.4 32.0 4.3 ?? -16.3 -10.6 -7.5 1.6 2.6 8.9 6.2 -10.8 11.7 3.1 4.7 -1.6 n Nonfarm noncorporate 99.2 77.9 65.7 50.8 13.7 35.0 45.5 3.5 19.6 -14.0 -18.7 -3.6 24 Corporate 209.7 123.7 184.6 159.5 79.4 83.1 111.2 101.3 84.8 20.2 46.0 9.5 25 Foreign net borrowing in United States 9.7 4.5 6.3 10.9 23.5 16.9 2.0 41.2 29.7 21.1 50.6 -53.0 76 3.1 7.4 6.9 5.3 21.6 -1.0 32.7 25.8 1.2 26.5 8.9 22.0 77 Bank loans n.e.c -1.0 -3.6 -1.8 -.1 -2.9 -4.3 -6.9 -1.8 1.9 -4.7 10.3 -7.1 78 Open market paper 11.5 2.1 8.7 13.3 12.3 22.2 -16.4 23.1 27.3 15.3 45.5 -52.0 29 U.S. government loans -3.9 -1.4 -7.5 -7.5 -7.5 .1 -7.3 -5.9 -.8 -16.0 -14.1 -15.8 30 Total domestic plus foreign 846.6 691.5 767.1 689.1 662.8 637.1 805.5 638.1 687.3 520.4 462.0 409.7 Financial sectors 31 Total net borrowing by financial sectors 285.1 300.2 247.6 205.5 202.1 187.3 190.2 170.4 180.0 267.7 102.6 95.4 By instrument 3? U.S. government-related 154.1 171.8 119.8 151.0 167.4 156.4 171.7 184.0 113399..22 117744..66 115555..88 115500..66 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 16 131.0 128.4 127.8 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 ..11 .2 .3 .5 ..11 -.1 39 Bank loans n.e.c 4.0 -3.2 1.4 1.8 .7 4.2 --22..33 -.6 2.0 3.8 11..00 -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 4? Sponsored credit agencies 14.9 29.5 44.9 25.2 17.0 -4.7 9.7 1177..11 2222..33 1199..00 1144..55 --2222..44 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 44 131.0 128.4 127.8 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 • May 1992 1.57—Continued 1989 1990 1991 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998866 11998877 11998899 Q4 Q1 Q2 Q3 Q4 Q1 Q2 All sectors 52 Total net borrowing, all sectors 1,131.7 991.7 1014.7 894.5 864.9 824.4 995.7 808.5 867.3 788.1 564.7 505.1 53 U.S. government securities 369.5 317.5 277.2 302.6 440.0 341.4 419.0 412.2 425.4 503.4 360.5 392.4 54 State and local obligations 22.7 49.3 49.8 30.4 20.1 19.1 12.4 24.5 30.0 13.5 11.3 27.5 55 Corporate and foreign bonds 212.8 165.7 161.5 115.8 121.1 125.9 96.4 165.8 52.0 170.3 129.0 180.5 56 Mortgages 316.4 324.9 306.7 275.7 228.6 240.1 348.5 216.2 213.0 136.7 138.7 169.8 57 Consumer credit 58.0 33.5 50.2 39.1 14.3 44.1 30.4 2.8 21.3 2.5 -23.6 -20.4 58 Bank loans n.e.c 69.9 3.2 39.4 41.5 -.9 7.5 7.1 13.0 1.4 -25.1 25.6 -64.5 59 Open market paper 26.4 32.3 75.4 60.6 30.7 51.6 62.3 -36.6 95.7 1.2 -15.2 -134.3 60 Other loans 56.1 65.5 54.4 28.9 11.1 -5.4 19.5 10.6 28.6 -14.5 -61.6 -46.0 61 MEMO: U.S. government, cash balance .0 -7.9 10.4 -5.9 8.3 -7.3 22.9 -38.1 21.1 27.4 51.6 -64.3 Totals net of changes in U.S. government cash balances 62 Net borrowing by domestic nonfinancial sectors 836.9 694.9 750.4 684.1 631.0 627.6 780.5 635.0 636.6 471.9 359.8 526.9 63 Net borrowing by U.S. government 215.0 152.8 147.1 157.5 264.2 192.4 224.4 266.3 265.1 301.0 153.1 306.1 External corporate equity funds raised in United States 64 Total net share issues 86.8 10.9 -124.2 -63.7 9.6 14.9 -9.2 48.0 -24.1 23.6 108.0 173.9 65 Mutual funds 159.0 73.9 1.1 41.3 61.4 72.4 47.8 71.0 46.1 80.6 87.8 122.2 66 Mother -72.2 -63.0 -125.3 -105.1 -51.7 -57.6 -57.0 -22.9 -70.2 -56.9 20.2 51.7 67 Nonfinancial corporations -85.0 -75.5 -129.5 -124.2 -63.0 -79.3 -69.0 -48.0 -74.0 -61.0 -12.0 11.0 68 Financial corporations 11.6 14.6 3.3 2.4 4.3 4.5 10.3 1.3 4.8 .9 3.4 4.3 69 Foreign shares purchased in United States 1.2 -2.1 .9 16.7 6.9 17.2 1.7 23.8 -1.0 3.2 28.8 36.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A41 1.58 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS Billions of dollars, except as noted; quarterly data at seasonally adjusted annual rates 1990 1991 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998877 11998888 11998899 11999900 11999911 Q2 Q3 Q4r Qlr Q2r Q3r Q4 1 Total funds advanced in credit markets to domestic nonfinancial sectors 722.8 767.2 714.7 644.5r 465.9 669.3 593.2r 479.9 434.5 538.9 476.1 414.1 2 Total net advances by federal agencies and foreign sectors 248.0 208.1 188.1 261.7 246.8 290.1 347.4 190.8 282.9 213.7 290.4 220000..44 By instrument 3 U.S. government securities 70.1 85.2 30.2 74.4 99.4 100.9 142.0 45.6 140.1 50.9 123.5 83.1 4 Residential mortgages 139.1 86.3 137.9 184.1 173.7 185.2 176.3 180.5 176.0 186.6 180.6 151.3 5 Federal Home Loan Bank advances to thrifts 24.4 19.7 -11.0 -24.7 -38.0 -26.9 -27.3 -15.7 -35.8 -48.5 -36.4 -31.5 6 Other loans and securities 14.3 16.8 31.0 27.8 11.8 31.0 56.4 -19.6 2.5 24.6 22.6 -2.5 By lender 7 U.S. government -7.9 -9.4 -2.6 33.6 9.8 36.1 63.6 -3.7 28.1 2288..88 4.6 --2222..55 8 Sponsored credit agencies and mortgage pools 169.3 112.0 125.3 166.7 160.2 163.6 182.4 141.9 164.0 123.9 185.0 167.6 9 Monetary authority 24.7 10.5 -7.3 8.1 31.1 30.8 26.2 -24.2 60.2 11..88 57.4 5.0 10 Foreign 61.8 95.0 72.7 53.2 45.8 59.6 75.1 76.8 30.6 5599..11 43.3 50.3 Agency and foreign borrowing not included in line I 11 Sponsored credit agencies and mortgage pools 171.8 119.8 151.0 167.4 157.0 172.8 146.2 118855..66 149.6 111188..00 117722..99 118877..66 12 Foreign 6.2 6.4 10.6 23.5 15.6 36.3 26.2 19.0 62.8 -59.6 22.7 36.4 13 Total private domestic funds advanced 652.8 685.3 688.2 573.7r 391.6 588.2 418.2r 493.7 363.9 383.6 381.3 437.7 14 U.S. government securities 246.3 189.7 267.2 340.0 335.7 311.5 246.6 411.9 208.7 336.2 415.0 383.0 15 State and local obligations 83.5 53.7 65.0 45.5 32.3 56.2 36.5 18.3 25.3 37.7 37.9 28.2 16 Corporate and foreign bonds 67.5 94.4 65.5 63.4r 83.2 75.7 27. r 95.6 73.5 97.0 84.9 77.3 17 Residential mortgages 120.2 161.3 96.5 34.6r -31.3 25.7 28.2r -18.6 -20.9 -20.8 -79.8 -3.5 18 Other mortgages and loans 159.8 205.9 183.1 65.6r -66.3 92.1 52.6r -29.2 41.5 -115.0 -112.9 -78.9 19 LESS: Federal Home Loan Bank advances 24.4 19.7 -11.0 -24.7 -38.0 -26.9 -27.3 -15.7 -35.8 -48.5 -36.4 -31.5 20 Total credit market funds advanced by private financial institutions 497.3 538.5 534.0 388.7r 348.4 282.4 299.4r 519.5 307.4 214.3 407.0 446644..66 By lending institution 71 Commercial banks 135.3 157.0 177.0 121.2 92.7 140.9 107.6 61.8 123.3 3300..11 7777..00 114400..44 77 Savings institutions 136.8 118.0 -90.9 -153.4 -157.3 -211.9 -160.8 -170.8 -173.6 -153.2 -205.2 -97.3 23 Insurance and pension funds 149.1 176.4 197.9 183.7R 215.5 241.6 135.6 188.3 209.4 218.3 230.2 204.0 24 Other financial institutions 76.2 87.1 249.9 237.2r 197.6 111.7 216.9r 440.2 148.4 119.2 305.0 217.6 By source of funds 25 Private domestic deposits and repurchase agreements ... 173.8 229.6 209.5 53.3 1.0 -5.7 45.5 --2222..88 221144..66 --111188..11 --7722..66 --2200..00 26 Credit market borrowing 92.4 93.7 40.0 .9 -21.6 19.5 -54.3r 35.2 -48.3 -34.7 -31.1 27.7 77 Other sources 231.1 215.3 284.5 334.5r 369.0 268.6 308.2r 507.1 141.1 367.2 510.7 456.9 7.8 Foreign funds 43.7 9.3 -9.9 24.0 -20.7 23.5 87.5 -28.5 9.4 -99.3 30.3 -23.1 79 Treasury balances -5.8 7.3 -3.4 5.3 5.7 -1.0 13.7 3.4 20.6 -22.3 5.7 18.7 30 Insurance and pension reserves 94.9 174.1 192.0 164.1 235.5 209.1 128.3 222.1 291.6 178.7 276.2 195.4 31 Other, net 98.4 24.5 105.8 141.0r 148.5 36.9 78.7r 310.1 -180.6 310.1 198.5 265.9 Private domestic nonfinancial investors 37 Direct lending in credit markets 247.9r 240.5 194.2 185.9r 21.7 325.4 64.6r 99..44 88..22 113344..55 --5566..88 ..88 33 U.S. government securities 100.5 134.5 125.5 123.3r 47.7 175.4 134.6 -5.7 16.7 162.1 -5.8 1177..55 34 State and local obligations 96.1 57.3 62.7 24.9 9.6 40.0 7.6 -13.5 15.2 22.1 16.3 -14.9 35 Corporate and foreign bonds 6.4 -32.2 -26.5 -23.4r -21.0 21.3 -120.3r -2.8 4.8 19.2 -90.6 -17.5 36 Open market paper 13.3 41.9 2.9 18.8 -36.6 53.0 12.8 -9.6 -46.6 -85.7 -1.8 -12.2 37 Other loans and mortgages 31.5 39.0 29.6 42.3r 21.9 35.7 29.8r 41.0 18.1 16.7 25.0 27.8 38 Deposits and currency 190.3 233.1 225.7 83.0 28.1 24.7 74.2 20.4 231.2 -94.7 -38.4 14.5 39 Currency 19.0 14.7 11.7 22.6 19.7 22.6 30.9 16.9 38.7 6.0 8.0 25.9 40 Checkable deposits -.3 12.5 .6 .4 52.0 4.5r -4.1r -23.5 56.3 14.2 104.7 32.8 41 Small time and savings accounts 76.0 122.4 98.2 59.4 19.5 19.9 40.8r 61.6 104.8 1.0 -52.8 25.1 47 Money market fund shares 28.9 21.2 86.7 56.0 34.5 -32.7 106.0 42.1 171.0 -63.5 -1.7 32.0 43 Large time deposits 47.6 40.6 9.1 -42.1 -91.2 -15.5 -70.7 -66.4 -60.8 -72.8 -106.3 -124.8 44 Security repurchase agreements 21.6 32.9 14.9 -20.5 -13.8 18.2 -26.5 -36.6 -56.7 3.0 -16.5 14.9 45 Deposits in foreign countries -2.5 -11.2 4.4 7.1r 7.5 7.8 -2.2 26.3 -22.2 17.5 26.1 8.6 46 Total of credit market instruments, deposits, and currency 438.2 473.6 419.9 268.9r 49.8 350.1 138.7' 29.8 239.3 39.8 -95.2 15.3 47 P M u E b M li O c holdings as percent of total 34.0 26.9 25.9 39.2r 51.3 41.1 56. r 3388..22 56.9 4444..66 5588..22 4444..55 48 Private financial intermediation (percent) 76.2 78.6 77.6 67.8r 89.0 48.0 71.6r 105.2 84.5 55.9 106.7 106.2 49 Total foreign funds 105.5 104.3 62.8 77.2 25.1 83.1 162.6 48.3 40.0 -40.2 73.6 27.1 Corporate equities not included above 50 Total net issues 7.1 -119.3 -65.4 15.8 208.6 56.4 -19.5' 27.0 116.1 117799..88 237.5 330000..99 51 Mutual fund shares 70.2 6.1 38.5 65.7 150.6 77.1 45.9 83.7 97.6 125.2 178.1 201.3 52 Other equities -63.1 -125.4 -103.9 -50.0 58.0 -20.7 -65.4r -56.7 18.5 54.6 59.4 99.6 53 Acquisitions by financial institutions 22.2 4.1 18.9 27.5r 76.5 64.6r -44.4r 53.2 80.9 57.1 91.1 76.7 54 Other net purchases -15.1 -123.3 -84.3 -11.7r 132.1 -8.3r 24.9 -26.2 35.2 122.7 146.3 224.2 NOTES BY LINE NUMBER. 30. Excludes investment of these reserves in corporate equities. 1. Line 1 of table 1.57. 31. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 7-10. 32. Line 13 less line 20 plus line 26. 6. Includes farm and commercial mortgages. 33-37. Lines 14-18 less amounts acquired by private finance plus amounts 11. Credit market funds raised by federally sponsored credit agencies, and net borrowed by private finance. Line 37 includes mortgages. issues of federally related mortgage pool securities. 39. Mainly an offset to line 9. 13. Line 1 less line 2 plus lines 11 and 12. Also line 20 less line 26 plus line 32. 46. Sum of lines 32 and 38, or line 13 less line 27 plus lines 39 and 45. Also sum of lines 28 and 47 less lines 40 and 46. 47. Line 2 divided by line 1. 18. Includes farm and commercial mortgages. 48. Line 20 divided by line 13. 25. Line 38 less lines 39 and 45. 49. Sum of lines 10 and 28. 26. Excludes equity issues and investment company shares. Includes line 19. 50. 52. Includes issues by financial institutions. 28. Foreign deposits at commercial banks, plus bank borrowings from foreign NOTE. Full statements for sectors and transaction types in flows and in amounts branches, plus liabilities of foreign banking agencies to foreign affiliates, less outstanding appear in the Board's z.l (780) quarterly statistical release. For Digitized for FcRlaAimSs EonR f oreign affiliates and deposits by banking institutions in foreign banks. ordering address, see inside front cover. http://fraser.stlo2u9i.s fDeedm.aonrdg d/ eposits and note balances at commercial banks. Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • May 1992 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING Billions of dollars, end of period 1989 1990 1991 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998877 11998899 Q4 Qi Q2 Q3 Q4 Ql Q2 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 7,646.3 8,343.9 9,096.0 9,805.2 9,805.2 10,073.3 10,226.8 10,386.9 10,557.3 10,615.5 10,735.3 By lending sector and instrument 2 U.S. government 1,815.4 1,960.3 2,117.8 2,269.4 2,269.4 2,360.9 2,401.7 2,470.2 2,568.9 2,624.7 2,667.7 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 3,6%.7 3,756.4 3,812.6 3,853.4 3,872.3 3,920.9 10 Home mortgages 1,720.8 1,943.1 2,173.9 2,404.3 2,404.3 2,558.3 2,619.5 2,670.0 2,710.0 2,730.1 2,781.0 11 Multifamily residential 246.2 270.0 286.7 304.4 304.4 304.5 300.5 304.5 306.0 306.5 307.1 12 Commercial 551.4 648.7 696.4 742.6 742.6 750.0 752.5 753.8 753.5 752.0 748.9 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 22,,331188..55 2,281.0 2,280.1 15 Consumer credit 659.8 693.2 743.5 790.6 790.6 782.3 789.4 798.7 880088..99 782.3 784.2 16 Bank loans n.e.c 666.0 673.3 713.1 763.0 763.0 748.5 756.1 753.6 757.4 749.0 740.3 17 Open market paper 62.9 73.8 85.7 107.1 107.1 126.0 128.7 131.8 116.9 119.9 118.4 18 Other 479.6 515.3 549.6 591.9 591.9 603.7 617.1 623.8 635.4 629.9 637.3 By borrowing sector 19 State and local government 510.1 558.9 604.5 634.1 634.1 633.8 636.9 647.1 649.1 650.2 652.8 20 Household 2,596.1 2,879.1 3,191.5 3,501.8 3,501.8 3,654.8 3,726.5 3,790.3 3,847.2 3,853.3 3,911.3 21 Nonfinancial business 2,724.8 2,945.6 3,182.2 3,400.0 3,400.0 3,423.9 3,461.7 3,479.4 3,492.2 3,487.3 3,503.6 22 Farm 156.6 145.5 137.6 139.2 139.2 137.3 138.7 141.6 140.5 139.3 143.0 23 Nonfarm noncorporate 997.6 1,075.4 1,145.1 1,195.9 1,195.9 1,208.3 1,208.7 1,209.0 1,209.6 1,205.9 1,204.6 24 Corporate 1,570.6 1,724.6 1,899.5 2,064.8 2,064.8 2,078.3 2,114.3 2,128.7 2,142.1 2,142.1 2,155.9 25 Foreign credit market debt held in United States 238.3 244.6 253.9 261.5 261.5 261.7 273.0 279.4 284.9 297.2 285.1 26 Bonds 74.9 82.3 89.2 94.5 94.5 103.3 108.4 108.9 116.1 118.9 123.0 27 Bank loans n.e.c 26.9 23.3 21.5 21.4 21.4 18.9 19.3 19.8 18.5 20.4 19.5 28 Open market paper 37.4 41.2 49.9 63.0 63.0 59.3 65.1 71.5 75.3 87.0 74.0 29 U.S. government loans 99.1 97.7 93.2 82.6 82.6 80.2 80.2 79.3 75.0 70.9 68.6 30 Total credit market debt owed by nonfinancial sectors, domestic and foreign 7,884.7 8,588.5 9,349.9 10,066.8 10,066.8 10,335.0 10,499.8 10,666.3 10,842.2 10,912.8 11,020.5 Financial sectors 31 Total credit market debt owed by financial sectors 1,529.8 1,836.8 2,084.4 2,322.4 2,322.4 2,359.0 2,405.5 2,448.8 2,527.7 2,540.1 2,567.3 By instrument 32 U.S. government-related 810.3 978.6 1,098.4 1,249.3 1,249.3 1,288.2 1,330.1 1,367.9 1,418.4 1,452.2 1,485.1 33 Sponsored credit-agency securities 273.0 303.2 348.1 373.3 373.3 378.1 381.0 384.4 393.7 397.0 389.6 34 Mortgage pool securities 531.6 670.4 745.3 871.0 871.0 905.2 944.2 978.5 1,019.9 1,050.4 1,090.7 35 Loans from U.S. government 5.7 5.0 5.0 5.0 5.0 5.0 5.0 5.0 4.9 4.9 4.9 36 Private 719.5 858.2 986.1 1,073.0 1,073.0 1,070.8 1,075.4 1,080.9 1,109.3 1,087.9 1,082.2 37 Corporate bonds 287.4 366.3 418.0 482.7 482.7 491.7 510.0 514.4 533.6 543.0 559.5 38 Mortgages 2.7 3.1 3.4 3.4 3.4 4.0 4.0 4.1 4.2 4.2 4.2 39 Bank loans n.e.c 36.1 32.8 34.2 36.0 36.0 33.2 34.8 34.9 36.7 34.8 35.2 40 Open market paper 284.6 322.9 377.7 409.1 409.1 409.1 400.3 409.6 417.7 398.8 388.6 41 Loans from Federal Home Loan Banks 108.6 133.1 152.8 141.8 141.8 132.9 126.3 117.9 117.1 107.0 94.7 By borrowing sector 42 Sponsored credit agencies 278.7 308.2 353.1 378.3 378.3 383.0 385.9 389.4 398.5 401.8 394.4 43 Mortgage pools 531.6 670.4 745.3 871.0 871.0 905.2 944.2 978.5 1,019.9 1,050.4 1,090.7 44 Private financial sectors 719.5 858.2 986.1 1,073.0 1,073.0 1,070.8 1,075.4 1,080.9 1,109.3 1,087.9 1,082.2 45 Commercial banks 75.6 81.8 78.8 77.4 77.4 73.2 71.6 70.7 76.3 68.1 65.9 46 Bank affiliates 116.8 131.1 136.2 142.5 142.5 142.0 134.3 122.9 114.8 111.7 110.3 47 Savings and loan associations 119.8 139.4 159.3 145.2 145.2 137.1 125.6 116.2 114.0 102.8 90.8 48 Mutual savings banks 8.6 16.7 18.6 17.2 17.2 15.4 16.7 16.2 16.7 16.4 15.8 49 Finance companies 328.1 378.8 446.1 496.2 496.2 499.2 509.7 530.9 551.8 545.9 547.0 50 Real estate investment trusts (REITs) 6.5 7.3 11.4 10.1 10.1 10.9 10.4 10.2 10.6 10.6 10.8 51 Securitized credit obligation (SCO) issuers... 64.0 103.1 135.7 184.4 184.4 193.1 206.9 213.8 225.2 232.4 241.7 All sectors 52 Total credit market debt, domestic and foreign.. 9,414.4 10,425.3 11,434.3 12,389.1 12,389.1 12,694.0 12,905.3 1,3115.1 13,369.9 13,452.9 13,587.7 53 U.S. government securities 2,620.0 2,933.9 3,211.1 3,513.7 3,513.7 3,644.1 3,726.9 3,833.1 3,982.5 4,072.1 4,147.9 54 State and local obligations 679.1 728.4 790.8 821.2 821.2 822.2 827.2 837.9 841.3 842.2 847.6 55 Corporate and foreign bonds 1,031.7 1,197.4 1,358.9 1,502.6 1,502.6 1,527.9 1,568.6 1,581.6 1,624.8 1,657.3 1,701.6 56 Mortgages 2,617.0 2,953.8 3,247.2 3,540.1 3,540.1 3,700.7 3,760.5 3,816.7 3,857.7 3,876.5 3,925.1 57 Consumer credit 659.8 693.2 743.5 790.6 790.6 782.3 789.4 798.7 808.9 782.3 784.2 58 Bank loans n.e.c 729.0 729.5 768.9 820.3 820.3 800.7 810.2 808.3 812.6 804.1 794.9 59 Open market paper 384.9 437.9 513.4 579.2 579.2 594.4 594.0 612.9 609.9 605.7 581.1 60 Other loans 693.1 751.1 800.5 821.4 821.4 821.7 828.5 826.0 832.3 812.7 805.5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A43 1.60 SUMMARY OF CREDIT MARKET CLAIMS, BY HOLDER Billions of dollars, except as noted, end of period 1990 1991 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998888 11998899 11999900RR 11999911 Q2 Q3 Q4R Qir Q2R Q3R Q4 1 Total funds advanced in credit markets to domestic nonfinancial sectors 9,242.3 9,987.lr 10,760.5 11,229.1 10,445.0r 10,597.7r 10,760.5 10,833.4 10,958.3 11,084.3 11,229.1 2 Total held by federal agencies and foreign sector 2,223.2 2,413.1 2,673.3 2,920.2 2,529.9 2,611.3 2,673.3 2,729.0 2,789.3 2,855.9 2,920.2 By instrument 3 U.S. government securities 651.5 688.9 763.3 862.6 714.1 745.6 763.3 789.5 808.7 883355..99 862.6 4 Residential mortgages 900.4 1,038.4 1,221.0 1,394.7 1,126.5 1,171.8 1,221.0 1,261.4 1,306.7 1,352.6 1,394.7 5 Federal Home Loan Bank advances to thrifts 152.8 141.8 117.1 79.1 126.3 117.9 117.1 107.0 94.7 83.9 79.1 6 Other loans and securities 518.5 544.1 571.9 583.8 563.1 576.0 571.9 571.1 579.1 583.4 583.8 By type of lender 7 U.S. government 214.6 207.0 240.6 250.3 227.4 242.7 240.6 248.2 225566..66 225577..11 225500..33 8 Sponsored credit agencies and mortgage pools 1,113.0 1,238.2 1,403.4 1,563.6 1,315.0 1,360.5 1,403.4 1,438.8 1,468.7 1,514.2 1,563.6 9 Monetary authority 240.6 233.3 241.4 272.5 237.8 240.8 241.4 247.3 253.7 264.7 272.5 10 Foreign 655.0 734.6 787.9 833.7 749.8 767.5 787.9 794.7 810.3 819.9 833.7 Agency and foreign debt not in line 1 11 Sponsored credit agencies and mortgage pools 1,098.4 1,249.3 1,418.4 1,575.4 1,330.1 1,367.9 1,418.4 1,452.1 11,,448800..33 11,,552244..33 11,,557755..44 12 Foreign 255.7 265.4 288.9 304.4 277.0 283.4 288.9 301.4 288.8 294.5 304.4 13 Total private domestic holdings 8,373.2 9,088.7r 9,794.4 10,188.8 9,522.lr 9,637.7r 9,794.4 9,857.9 9,938.1 10,047.2 10,188.8 14 U.S. government securities 2,546.8 2,806.7R 3,148.4 3,484.1 2,958.5 3,027.7 3,148.4 3,206.5 3,258.7 3,370.8 3,484.1 15 State and local obligations 939.4 L,004.4R 1,049.8 1,082.1 1,031.4R L,043.0R 1,049.8 1,052.8 1,060.7 1,072.9 1,082.1 16 Corporate and foreign bonds 744.8 809.8 873.2 956.4 842.7 850.5 873.2 892.4 915.8 938.3 956.4 17 Residential mortgages 1,560.2 1,670.4 1,849.8 1,818.5 1,849.7 1,859 .OR 1,849.8 1,838.7 1,841.7 1,824.4 1,818.5 18 Other mortgages and loans 2,734.7 2,939.2 2,990.4 2,926.7 2,966.2 2,975.4R 2,990.4 2,974.6 2,955.9 2,924.8 2,926.7 19 LESS: Federal Home Loan Bank advances 152.8 141.8 117.1 79.1 126.3 117.9 117.1 107.0 94.7 83.9 79.1 20 Total credit market claims held by private financial institutions 7,055.3 7,602.9 8,132.4 8,480.4 7,931.6 77,,999900..00"" 8,132.4 8,200.4 8,261.9 88,,335555..55 88,,448800..44 By holding institution 21 Commercial banks 2,476.2 2,643.9 2,765.1 2,860.5 2,709.5 2,739.0 2,765.1 2,778.6 22,,779933..11 22,,881155..22 22,,886600..55 77 Savings institutions 1,565.2 1,478.2 1,345.1 1,184.6 1,424.2 1,385.9 1,345.1 1,302.8 1,263.6 1,210.0 1,184.6 ?3 Insurance and pension funds 1,836.1 2,034.0 2,218.1 2,433.5 2,153.3 2,173.8 2,218.1 2,274.9 2,329.6 2,385.5 2,433.5 24 Other finance 1,177.9 1,446.7 1,804.2 2,001.8 1,644.5 L,691.3R 1,804.2 1,844.1 1,875.6 1,944.8 2,001.8 By source of funds 25 Pnvate domestic deposits and repurchase agreements 3,581.3 3,790.4 3,843.8 3,844.6 3,806.5 3,812.1 3,843.8 3,873.3 33,,883366..00 33,,881122..11 33,,884444..66 76 Credit market debt 901.4 970.0 1,093.5 1,072.7 1,095.1 l,079.8r 1,093.5 1,078.4 1,070.3 1,061.0 1,072.7 77 Other sources 2,572.6 2,842.5 3,195.1 3,563.0 3,030.0 3,098.0r 3,195.1 3,248.7 3,355.6 3,482.3 3,563.0 78 Foreign funds 71.6 62.1 86.1 65.5 63.5 86.6 86.1 84.8 55.3 64.8 65.5 79 U.S. Treasury balances 29.0 25.6 30.9 36.6 32.1 36.6 30.9 26.3 36.0 38.5 36.6 30 Insurance and pension reserves 1,723.2 1,908.2 2,067.7 2,286.3 1,983.0 2,018.6 2,067.7 2,126.8 2,174.6 2,237.4 2,286.3 31 Other, net 748.9 846.6 1,010.4 1,174.7 951.3 956.2R 1,010.4 1,010.7 1,089.6 1,141.5 1,174.7 Private domestic nonfinancial investors 3? Credit market claims 2,219.3 2,455.9r 2,755.5 2,781.1 2,685.7r 2,727.6r 2,755.5 2,736.0 2,746.5 22,,775522..77 22,,778811..11 33 U.S. government securities 1,050.7 1,169.0 1,278.0 1,325.7 1,214.5 1,256.8 1,278.0 1,277.7 1,290.5 1,298.7 1,325.7 34 State and local obligations 486.7 549.4r 574.2 583.9 568.9r 573.8r 574.2 568.2 576.8 584.0 583.9 35 Corporate and foreign bonds 52.4 64.7 194.8 177.7 217.8 201.3r 194.8 198.1 201.7 185.1 177.7 3 36 7 O O t p h e e n r m lo a a r n k s e t a n p d a p m er o rtgages 3 2 8 4 6 3 . . 5 0 4 2 2 4 7 5 . . 0 9 4 2 4 6 3 4 . . 8 7 4 2 6 28 5 . . 1 7 4 2 2 6 0 4 . . 0 5 4 2 2 6 9 6 . . 2 4 r 4 2 4 6 3 4 . . 8 7 4 2 4 5 1 0 . . 8 1 4 2 4 32 5 . . 1 5 4 2 5 3 4 0 . . 5 5 4 2 6 28 5 . . 1 7 38 Deposits and currency 3,814.5 4,039.7 4,122.7 4,150.8 4,066.6 4,076.1 4,122.7 4,149.5 4,124.4 4,105.6 4,150.8 39 Currency 220.1 231.8 254.4 274.0 242.7 247.2 254.4 262.0 265.9 264.8 274.0 40 Checkable deposits 532.9 532.9 533.3 585.2 514.2 503.5 533.3 515.5 524.3 540.8 585.2 41 Small time and savings accounts 2,156.2 2,254.7 2,313.2 2,332.7 2,286.6r 2,295.8r 2,313.2 2,342.5 2,338.8 2,324.7 2,332.7 4? Money market fund shares 318.9 405.6 461.6 496.1 425.9 452.1 461.6 509.6 489.6 489.1 496.1 43 Large time deposits 390.3 399.3 358.3 267.1 387. R 374. r 358.3 342.9 319.7 297.8 267.1 44 Security repurchase agreements 182.9 197.9 177.4 163.6 192.7 186.6 177.4 162.9 163.6 159.8 163.6 45 Deposits in foreign countries 13.1 17.6 24.6 32.1 17.5 16.8 24.6 14.3 22.5 28.7 32.1 46 Total of credit market instruments, deposits, and currency 6,033.8 6,495.6r 6,878.3 6,931.9 6,752.3r 6,803.7r 6,878.3 6,885.5 6,870.9 66,,885588..33 6,931.9 MEMO 47 Public holdings as percent of total 23.4 23.5R 24.2 25.3 23.6r 2244..CC 24.2 24.5 24.8 25.1 25.3 48 Private financial intermediation (percent) 97.2 94.2 87.8 82.1 91.6 90.5 87.8 86.7 85.7 83.5 82.1 49 Total foreign funds 726.6 796.7 873.9 899.2 813.3 854.1 873.9 879.5 865.6 884.7 899.2 Corporate equities not included above 50 Total market value 3,619.8 4,374.8 4,084.6 5,219.5 4,400.7r 33,,882244..00rr 4,084.6 4,635.1 4,669.3 4,937.0 5,219.5 51 Mutual fund shares 478.3 555.1 578.5 852.4 587.9 547.3 578.5 643.0 681.3 764.0 852.4 52, Other equities 3,141.6 3,819.7 3,506.2 4,367.2 3,812.8R 3,276.8r 3,506.2 3,992.1 3,988.0 4,172.9 4,367.2 53 Holdings by financial institutions 1,113.6 1,416.9 1,342.1 1,844.4 l,459.6r l,232.6r 1,342.1 1,572.0 1,577.7 1,708.0 1,844.4 54 Other holdings 2,506.2 2,958.0 2,742.6 3,375.1 2,941.1r 2,591,4r 2,742.6 3,063.2 3,091.6 3,229.0 3,375.1 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 appear in the Board's z.l (780) quarterly statistical release. For Digitized for FRA29S. EDRem and deposits and note balances at commercial banks. ordering address, see inside front cover. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • May 1992 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures Monthly data seasonally adjusted, 1987=100, except as noted 1991 1992 MMeeaassuurree 11998899 11999900 11999911 June July Aug. Sept. Oct. Nov. Dec/ Jan. Feb. 1 Industrial production1 108.1 109.2 107.1 107.3 108.1 108.0 108.4 108.4 108.1 107.4 106.6r 107.2 Market groupings 2 Products, total 108.6 110.1 108.1 108.6 108.7 108.5 108.9 109.0 109.0 108.5 107.6r 108.2 3 Final, total 109.1 110.9 109.6 110.1 110.2 109.8 110.4 110.6 110.6 110.0 108.9r 109.7 4 Consumer goods 106.7 107.3 107.5r 108.0 108.3 108.4 109.4 109.7 110.0 109.5 108.5r 109.4 5 Equipment 112.3 115.5 112.2 112.8 112.8 111.6 111.8 111.9 111.4 110.8 109.4r 110.1 6 Intermediate 106.8 107.7 103.3r 104.0 104.0 104.4 104.3 104.1 103.9r 103.5 103.3r 103.4 7 Materials 107.4 107.8 105.5 105.4 107.0 107.2 107.5 107.4 106.6 105.7 105.0r 105.6 Industry groupings 8 Manufacturing 108.9 109.9 107.4r 107.5 108.3 108.4 108.9 109.0 108.6 108.1 107.4r 108.1 9 Capacity utilization, manufacturing (percent)2 83.9 82.3 78.2 78.3 78.7 78.6 78.8 78.7 78.2 77.7 77.0 77.4 10 Construction contracts (1982=100)3 172.9 156.2 136.4r 133.0 144.0 150.0 143.0 157.0 134.0 152.0 95.0 n.a. 11 Nonagricultural employment, total4 106.0 107.6 106.6 106.5 106.5 106.6 106.7 106.7 106.5 106.5 106.4 106.6 12 Goods-producing, total 102.5 101.0 96.4 96.3 96.3 96.4 96.3 96.0 95.5 95.3 95.1 95.1 13 Manufacturing, total 102.2 100.5 96.9 96.6 96.1 96.9 96.8 96.6 96.4 96.2 95.9 95.9 14 Manufacturing, production worker 102.3 100.0 96.0 95.7 96.0 96.3 96.0 95.9 95.6 95.4 95.1 95.4 15 Service-producing 107.1 109.7 109.9 109.8 109.8 109.9 110.0 110.1 110.0 110.1 110.0 110.2 16 Personal income, total 115.2 123.1 127.2r 127.5 127.1 127.7 128.2 128.5r 128.4r 129.7 129.6 n.a. 17 Wages and salary disbursements 114.4 121.1 124.2 124.8 124.2 124.9 125.4 125.2r 125.4r 126.2 125.6 n.a. 18 Manufacturing 110.6 113.4 113.5 113.4 113.8 114.4 114.6 115.6 114.5r 115.3 113.5 n.a. 19 Disposable personal income 115.2 123.4 128.3r 128.6 128.3 128.9 129.3 129.7r 129.6r 131.0 130.9 n.a. 20 Retail sales6 113.2 117.4 118.3r 119.0 119.4 118.6 119.0 118.9 118.9 118.8 121.3r 122.9 Prices7 21 Consumer (1982-84= 100) 124.0 130.7 136.2 136.0 136.2 136.6 137.2 137.4 137.8 137.9 138.1 138.6 22 Producer finished goods (1982=100) 113.6 119.2 121.7 121.9 121.6 121.7 121.4 122.2r 122.3 121.9 121.7 121.9 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 1992 CCaatteeggoorryy 11998899 11999900 11999911 July Aug. Sept. Oct. Nov. Dec.r Jan.r Feb. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 188,601 190,216 191,883 191,955 192,095 192,240 192,386 192,522 192,661 192,796 192,906 2 Labor force (including Armed Forces)1 126,077 126,954 127,421 127,320 127,126 127,708 127,605 127,444 127,675 128,083 128,309 3 Civilian labor force 123,869 124,787 125,303 125,204 125,004 125,590 125,508 125,374 125,619 126,046 126,287 4 Nonagricultural industries2 114,142 114,728 114,644 113,485 113,230 113,806 113,663 113,500 113,545 113,951 113,811 5 Agriculture 3,199 3,186 3,233 3,244 3,254 3,283 3,204 3,272 3,183 3,166 3,232 Unemployment 6 Number 6,528 6,874 8,426 8,475 8,520 8,501 8,641 8,602 8,891 8,929 9,244 7 Rate (percent of civilian labor force) — 5.3 5.5 6.7 6.8 6.8 6.8 6.9 6.9 7.1 7.1 7.3 8 Not in labor force 62,524 63,262 64,462 64,635 64,969 64,532 64,781 65,078 64,986 64,713 64,597 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 108,329 109,971 108,975 108,859 108,971 109,066 109,073 108,843 108,882 108,733 108,897 10 Manufacturing 19,442 19,111 18,427 18,402 18,442 18,414 18,377 18,337 18,293 18,237 18,249 11 Mining 693 711 697 701 693 684 679 674 670 666 666 12 Contract construction 5,187 5,136 4,696 4,695 4,691 4,699 4,671 4,584 4,589 4,600 4,570 13 Transportation and public utilities 5,644 5,826 5,823 5,809 5,820 5,829 5,828 5,816 5,811 5,798 5,813 14 25,770 25,843 25,412 25,411 25,393 25,387 25,335 25,261 25,247 25,166 25,291 15 Finance 6,695 6,739 6,707 6,688 6,687 6,692 6,697 6,694 6,701 6,692 6,699 16 Service 27,120 28,240 28,778 28,733 28,831 28,937 29,019 29,008 29,057 29,065 29,112 17 Government 17,779 18,322 18,434 18,420 18,414 18,424 18,467 18,469 18,514 18,509 18,497 1. Persons sixteen years of age and older. Monthly figures are based on sample pay for, the pay period that includes the twelfth day of the month, and exclude data collected during the calendar week that contains the twelfth day; annual data proprietors, self-employed persons, household and unpaid family workers, and are averages of monthly figures. By definition, seasonality does not exist in members of the armed forces. Data are adjusted to the March 1984 benchmark, population figures. and only seasonally adjusted data are available at this time. 2. Includes self-employed, unpaid family, and domestic service workers. SOURCE. Based on data from Employment and Earnings (U.S. Department of 3. Includes all full- and part-time employees who worked during, or received Labor). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • May 1992 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1991 1991 1991 SSeerriieess Q1 Q2 Q3 Q4r Qi Q2 Q3 Q4 Ql Q2 Q3 Q4r Output (1987=100) Capacity (percent of 1987 output) Capacity utilization rate (percent) 1 Total industry 105.8 106.4 108.1 108.0 133.6 134.5 135.3 136.2 79.2 79.1 79.9 79.3 2 Manufacturing 106.1 106.7 108.5 108.6 136.0 136.9 137.9 138.9 78.0 77.9 78.7 78.2 3 Primary processing 100.6 100.8 104.1 104.1 126.8 127.5 128.1 128.8 79.4 79.1 81.2 80.8 4 Advanced processing 108.6 109.4 110.6 110.7 140.2 141.3 142.4 143.5 77.5 77.4 77.7 77.1 5 Durable goods 106.1 106.7 108.1 107.6 139.9 140.9 141.8 142.8 75.8 75.7 76.2 75.4 6 Lumber and products 92.3 94.0 95.1 95.2 125.0 125.2 125.4 125.7 73.9 75.1 75.8 75.8 7 Primary metals 97.9 95.9 102.0 102.4 128.2 128.6 129.0 129.3 76.4 74.6 79.1 79.2 8 Iron and steel 96.3 92.8 100.3 103.2 133.0 133.5 134.0 134.5 72.4 69.5 74.8 76.7 9 Nonferrous 100.2 100.3 104.5 101.3 121.3 121.5 121.7 121.9 82.6 82.6 85.8 83.1 10 Nonelectrical machinery 124.4 123.5 123.5 122.7 157.9 159.5 161.2 162.8 78.8 77.4 76.6 75.4 11 Electrical machinery 108.1 110.6 111.2 110.3 142.7 144.0 145.3 146.6 75.8 76.8 76.5 75.3 12 Motor vehicles and parts 80.8 89.5 95.9 97.0 133.4 134.2 134.9 135.6 60.5 66.7 71.1 71.5 13 Aerospace and miscellaneous transportation equipment . 109.9 106.4 105.2 102.9 137.0 137.9 138.7 139.6 80.2 77.2 75.9 73.7 14 Nondurable goods 106.1 106.7 109.1 109.8 130.9 131.9 132.9 133.8 81.0 80.9 82.1 82.0 15 Textile mill products 94.6 99.4 104.1 104.5 117.3 117.7 118.0 118.3 80.6 84.5 88.2 88.3 16 Paper and products 102.6 102.7 107.6 107.4 116.4 117.1 117.9 118.7 88.2 87.7 91.2 90.5 17 Chemicals and products 109.1 109.3 112.1 113.2 138.4 139.7 141.0 142.3 78.8 78.2 79.5 79.6 18 Plastics materials 113.2 115.6 125.4 126.2 135.7 139.2 142.6 146.1 83.4 83.0 87.9 86.4 19 Petroleum products 107.3 107.6 108.1 107.3 121.4 121.4 121.4 121.4 88.4 88.6 89.0 88.4 20 Mining 102.0 101.1 101.8 99.7 113.8 114.3 114.6 114.7 89.6 88.4 88.9 86.9 21 Utilities 106.2 109.6 110.4 109.4 128.1 128.4 128.8 129.2 82.9 85.3 85.7 84.7 22 Electric 109.3 114.4 115.2 111.7 123.8 124.3 124.7 125.2 88.3 92.1 92.4 89.2 Previous cycle Latest cycle 1991 1991 1992 High Low High Low Feb. July Aug. Sept. Oct. Nov.r Dec.r Jan.r Feb." Capacity utilization rate (percent) 1 Total industry 89.2 72.6 87.3 71.8 79.1 80.0 79.8 79.9 79.8 79.3 78.7 77.9 78.2 2 Manufacturing 88.9 70.8 87.3 70.0 78.0 78.7 78.6 78.8 78.7 78.2 77.7 77.0 77.4 3 Primary processing 92.2 68.9 89.7 66.8 79.5 81.1 81.2 81.3 81.4 80.8 80.2 79.9 80.2 4 Advanced processing 87.5 72.0 86.3 71.4 77.4 77.8 77.5 77.7 77.6 77.1 76.6 75.8 76.2 5 Durable goods 88.8 68.5 86.9 65.0 75.8 76.4 76.0 76.2 75.9 75.5 74.7 73.7 74.4 6 Lumber and products 90.1 62.2 87.6 60.9 73.2 75.6 76.0 75.8 74.6 76.7 75.9 77.4 76.6 7 Primary metals 100.6 66.2 102.4 46.8 77.6 78.5 79.6 79.3 79.4 80.0 78.1 80.3 79.8 8 Iron and steel 105.8 66.6 110.4 38.3 73.7 74.3 75.0 75.1 76.2 78.5 75.5 79.4 78.4 9 Nonferrous 92.9 61.3 90.5 62.2 83.7 85.1 86.7 85.7 84.5 82.5 82.3 81.8 81.9 10 Nonelectrical machinery 96.4 74.5 92.1 64.9 78.8 77.2 76.5 76.1 76.1 75.4 74.6 73.8 74.5 11 Electrical machinery 87.8 63.8 89.4 71.1 75.8 76.6 76.8 76.2 75.1 75.5 75.1 74.5 74.8 12 Motor vehicles and parts 93.4 51.1 93.0 44.5 59.5 71.8 67.9 73.6 74.2 70.7 69.6 63.9 68.4 13 Aerospace and miscellaneous transportation equipment. 77.0 66.6 81.1 66.9 80.3 76.1 76.1 75.3 74.8 73.9 72.4 71.0 70.6 14 Nondurable goods 87.9 71.8 87.0 76.9 81.0 82.0 82.1 82.3 82.4 81.9 81.7 81.4 81.5 15 Textile mill products 92.0 60.4 91.7 73.8 80.4 88.4 88.8 87.4 89.2 88.2 87.6 87.1 86.9 16 Paper and products 96.9 69.0 94.2 82.0 87.9 91.9 90.4 91.4 92.1 89.4 90.0 87.5 88.1 17 Chemicals and products 87.9 69.9 85.1 70.1 78.8 79.3 79.7 79.6 80.0 79.4 79.3 79.4 79.9 18 Plastics materials 102.0 50.6 90.9 63.4 85.0 89.6 87.1 87.0 89.5 87.2 82.5 82.0 81.2 19 Petroleum products 96.7 81.1 89.5 68.2 89.6 89.2 88.4 89.4 87.3 87.9 90.0 88.8 88.9 20 Mining 94.4 88.4 96.6 80.6 90.4 89.6 88.5 88.5 87.9 86.8 86.1 84.7 84.9 21 Utilities 95.6 82.5 88.3 76.2 81.6 86.2 85.9 85.1 84.8 85.9 83.4 82.9 82.4 22 Electric 99.0 82.7 88.3 78.7 87.0 93.6 92.7 90.8 89.7 90.0 87.9 87.5 87.0 1. Data in this table also appear in the Board's G.17 (419) monthly statistical 2. Monthly high, 1973; monthly low, 1975. release. For ordering address, see inside front cover. For a detailed description of 3. Monthly highs, 1978 through 1980; monthly lows, 1982. the series, see "Recent Developments in Industrial Capacity and Utilization," Federal Reserve Bulletin, vol. 76 (June 1990), pp. 411-35. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A47 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 1987 1991 1992 pro- 1991 Group por- avg. tion Feb. Mar. Apr. May July Aug. Sept Oct. Nov.r Dec Index (1987 = 100) MAJOR MARKETS 1 Total index 100.0 107.1 105.7 105.0 105.5 106.4 107.3 108.1 108.0 108.4 108.4 108.1 107.4 106.6 107.2 2 Products 60.8 108.1 106.9 106.5 106.9 107.7 108.6 108.7 108.5 108.9 109.0 109.0 108.5 107.6 108.2 1 1 1 1 1 4 6 7 9 3 5 8 2 3 0 1 4 Fin C a o l D n p u s A O r u r o u a m t A C A A d M h b t e o u e u l a u p T A r e i m r c r t s t p r t o p o c u g c l o s u s e e i o o t t a p c l t o n i o a l i n k v a s a n s d n c r , e s n u g s d t e , c e m , s s p a c o o t , t r a n o e r n u o o A n r u n d s t s d a u d c s / g u C f u h k l m u o a c m o s , o r t l e m l s n a d e r i e i n r e s t d u d g r g o e T o o V d o s d . . s . . . . . . 4 2 6 2 5 6 33 1 1 1 . . .. . . .. . . . . . . 5 6 11 0 0 88 5 9 6 9 0 4 1 1 1 1 1 1 9 9 9 9 9 8 0 0 0 0 1 0 9 0 7 9 9 4 7 9 2 9 3 5 . . . . . . . . . . . . 4 2 8 5 6 6 5 3 3 8 6 4 1 1 1 1 1 9 6 7 8 9 9 7 0 0 0 0 0 8 8 4 5 2 4 8 4 0 8 8 9 . . . . . . . . . . . . 1 1 7 2 0 5 6 7 7 3 3 8 1 1 1 1 1 9 7 8 9 9 7 7 0 0 0 0 0 6 3 8 5 6 6 7 8 4 7 1 9 . . . . . . . . . . . . 7 9 9 9 2 3 1 7 4 3 4 2 1 1 1 1 1 9 8 9 9 9 9 7 1 0 0 0 0 9 5 7 4 7 6 8 5 0 8 8 3 . . . . . . . . . . . . 3 0 0 2 3 3 3 5 8 7 0 4 1 1 1 1 1 1 1 9 8 9 9 8 0 0 0 0 0 0 1 6 9 6 7 1 4 1 9 9 6 1 2 . . . . . . . . . . . . 9 2 8 4 1 1 9 5 3 6 6 8 1 1 1 1 1 1 1 1 1 9 9 8 0 0 1 1 0 0 0 1 0 2 9 3 7 0 0 2 4 7 4 3 8 . . . . . . . . . . . . 5 2 8 1 1 2 2 4 3 8 8 0 1 1 1 1 1 1 1 1 1 1 9 9 0 0 0 0 0 1 0 0 0 1 8 2 3 5 8 2 8 5 8 6 0 0 . . . . . . . . . . . . 1 8 1 5 1 3 3 5 6 9 6 2 1 1 1 1 1 1 1 1 9 9 9 8 0 1 0 1 0 0 0 0 0 9 8 3 8 1 3 5 8 9 4 2 . . . . . . . . . . . . 2 6 6 0 3 3 9 9 4 8 0 2 1 1 1 1 1 1 1 1 1 1 1 9 0 0 0 0 0 1 0 1 0 1 1 4 4 1 3 7 6 7 8 1 9 5 0 . . . . . . . . . . . . 1 6 8 7 5 0 1 7 8 4 6 4 1 1 1 1 1 1 1 1 1 1 1 9 0 0 0 1 0 2 0 0 0 0 1 2 2 5 1 8 6 9 9 7 5 6 0 . . . . . . . . . . . . 1 1 6 8 1 1 1 7 5 7 6 6 1 1 1 1 1 1 1 1 1 1 9 8 0 1 0 1 0 1 0 0 1 1 9 9 1 0 2 5 3 0 8 6 0 4 . . . . . . . . . . . . 0 8 5 6 3 2 5 6 6 0 0 0 1 1 1 1 1 1 1 1 1 9 9 8 0 0 0 0 0 0 1 1 1 6 9 8 1 9 9 1 7 4 5 1 0 . . . . . . . . . . . . 7 1 2 5 1 5 7 3 8 0 6 0 1 1 1 1 1 1 1 8 9 9 9 7 0 0 0 0 1 0 0 4 9 9 3 3 1 7 0 8 3 6 8 . . . . . . . . . . . . 3 1 7 6 0 5 5 9 5 7 8 9 1 1 1 1 1 1 1 1 1 1 9 8 0 0 1 0 0 0 0 0 1 0 4 4 9 4 4 1 4 8 8 0 0 9 . . . . . . . . . . . . 3 8 5 4 5 2 3 6 0 0 7 2 15 Nondurable consumer goods 20.4 109.0 107.3 107.1 107.2 108.1 109.0 109.0 109.6 109.8 110.3 111.1 110.7 110.6 110.8 16 Foods and tobacco 9.1 106.7 105.9 105.4 105.3 106.2 106.9 106.9 107.1 107.8 107.8 108.1 107.6 107.3 108.1 17 Clothing 2.6 93.5 90.8 90.4 90.6 92.0 93.9 94.3 94.8 95.2 96.3 96.5 96.2 95.8 95.1 18 Chemical products 3.5 115.9 114.8 114.2 115.0 113.9 114.3 115.4 117.4 117.3 117.0 117.9 118.9 119.8 121.0 19 Paper products 2.5 123.6 121.0 122.2 122.7 121.8 123.3 122.1 122.6 124.8 125.6 126.4 126.7 126.7 125.2 20 Energy 2.7 108.5 105.2 105.5 104.4 109.0 110.0 109.4 109.5 106.7 108.5 112.0 109.4 108.7 107.9 21 Fuels .7 103.5 103.4 104.3 101.4 103.6 104.9 105.2 104.0 104.4 103.5 103.6 104.5 104.2 104.0 22 Residential utilities 2.0 110.4 105.9 105.9 105.5 111.0 111.9 110.9 111.5 107.6 110.3 115.1 111.2 110.4 109.4 23 Equipment 20.0 112.2 112.9 112.5 112.8 112.7 112.8 112.8 111.6 111.8 111.9 111.4 110.8 109.4 110.1 24 Business equipment 13.9 121.5 120.6 120.3 121.3 121.7 121.9 122.5 121.3 122.2 122.3 121.8 121.4 120.0 121.2 25 Information processing and related . 5.6 131.5 131.6 131.2 131.5 131.8 130.9 131.1 130.3 130.3 131.7 133.4 133.6 134.1 134.7 26 Office and computing 1.9 155.5 157.3 155.1 155.6 155.6 154.0 156.0 153.1 152.2 156.0 157.8 159.1 160.6 161.6 27 Industrial 4.0 108.0 109.1 109.5 109.3 109.3 109.1 109.0 108.6 108.2 106.8 104.2 102.6 100.6 101.0 28 Transit 2.5 126.9 120.3 120.4 124.1 125.9 128.0 131.2 126.7 132.7 133.1 130.5 129.9 124.7 129.1 29 Autos and trucks 1.2 88.6 75.0 76.7 84.4 87.9 90.8 96.6 86.2 99.3 101.1 96.5 96.1 84.9 94.7 30 Other 1.9 113.6 112.5 110.8 112.7 113.0 114.8 114.0 114.8 114.2 113.6 113.8 114.3 113.5 114.0 31 Defense and space equipment 5.4 91.1 94.5 93.9 92.5 91.5 91.0 90.0 89.8 89.1 89.1 88.8 87.7 86.4 85.6 32 Oil and gas well drilling .6 93.3 108.2 107.7 105.1 101.3 103.0 97.8 86.7 80.1 79.0 78.1 75.8 71.8 73.9 33 Manufactured homes .2 85.5 77.3 79.3 83.1 86.6 90.8 86.5 90.3 86.2 86.3 87.0 87.9 98.4 96.0 34 Intermediate products, total 14.7 103.3 102.6 101.3 101.2 102.7 104.0 104.0 104.4 104.3 104.1 103.9 103.5 103.3 103.4 35 Construction supplies 6.0 96.1 96.4 94.0 94.9 95.8 97.4 96.9 96.7 96.5 95.4 95.9 95.2 95.3 95.5 36 Business supplies 8.7 108.3 106.8 106.4 105.6 107.5 108.5 109.0 109.7 109.7 110.1 109.4 109.3 108.9 109.0 37 Materials 39.2 105.5 103.9 102.6 103.4 104.5 105.4 107.0 107.2 107.5 107.4 106.6 105.7 105.0 105.6 38 Durable goods materials 19.4 107.1 105.5 103.3 104.9 106.2 106.7 108.2 109.1 109.3 108.8 108.6 108.1 107.4 108.3 39 Durable consumer parts 4.2 96.4 90.4 87.5 92.1 95.5 97.3 100.2 100.1 101.3 101.6 100.5 97.0 96.0 98.2 40 Equipment parts 7.3 114.4 116.2 114.8 114.6 114.8 113.6 113.5 114.3 113.9 113.6 113.7 114.2 114.4 115.3 41 Other 7.9 106.0 103.8 101.0 102.6 103.8 105.3 107.5 109.0 109.3 108.2 108.3 108.2 107.0 107.1 42 Basic metal materials 2.8 106.0 104.8 101.2 101.6 103.0 105.9 108.8 110.2 109.5 107.7 108.1 108.0 106.7 106.3 43 Nondurable goods materials 9.0 106.0 103.6 102.8 103.1 103.7 104.9 108.1 107.8 108.3 109.6 107.7 107.1 106.4 107.3 44 Textile materials 1.2 97.2 91.5 92.7 94.7 96.8 98.1 101.4 101.5 99.5 101.8 99.9 99.7 99.1 99.4 45 Pulp and paper materials 1.9 106.9 104.1 102.4 102.0 101.5 106.9 110.3 108.2 110.4 112.0 108.6 109.6 104.6 106.1 46 Chemical materials 3.8 106.1 104.1 102.7 102.9 103.9 103.9 107.7 107.9 108.2 109.9 108.3 106.6 106.9 108.2 47 Other 2.1 109.8 108.8 108.8 109.0 109.2 108.6 110.5 110.9 111.3 111.2 110.1 109.9 111.1 111.1 48 Energy materials 10.9 102.3 101.1 101.3 101.1 102.4 103.4 104.1 103.3 103.6 103.1 102.2 100.5 99.5 99.4 49 Primary energy 7.2 102.4 102.1 101.5 100.5 101.2 104.7 106.2 104.5 103.8 102.8 100.9 100.5 99.0 98.9 50 Converted fuel materials 3.7 102.1 99.2 100.8 102.4 104.7 101.0 100.1 101.0 103.4 103.8 104.5 100.4 100.6 100.4 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.3 107.5 106.6 105.7 106.1 106.9 107.8 108.4 108.5 108.6 108.5 108.3 107.7 107.2 107.5 52 Total excluding motor vehicles and parts .. 95.3 107.9 107.0 106.2 106.5 107.3 108.1 108.6 108.8 108.8 108.8 108.7 108.0 107.5 107.9 53 Total excluding office and computing machines 97.5 105.8 104.4 103.7 104.2 105.2 106.2 106.9 106.8 107.3 107.2 106.8 106.1 105.2 105.8 54 Consumer goods excluding autos and trucks 24.5 108.6 106.5 106.4 106.7 107.6 108.9 108.9 109.5 109.8 109.9 110.7 110.2 110.0 110.4 55 Consumer goods excluding energy 23.3 107.4 104.7 104.6 105.6 106.3 107.7 108.1 108.3 109.7 109.8 109.8 109.5 108.5 109.6 56 Business equipment excluding autos and trucks 12.7 124.7 125.0 124.5 124.9 125.0 125.0 125.0 124.7 124.4 124.4 124.3 123.9 123.4 123.8 57 Business equipment excluding office and computing equipment 12.0 116.0 114.6 114.6 115.7 116.3 116.7 117.0 116.2 117.3 116.9 116.0 115.3 113.4 114.6 58 Materials excluding energy 28.4 106.7 104.9 103.1 104.3 105.4 106.1 108.2 108.7 109.0 109.1 108.3 107.8 107.1 108.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • May 1992 2.13—Continued 1987 1991 19< Group SIC2 pro- 1991 code por- avg. tion Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov.r Dec.r Jan.r Index (1987 = 100) MAJOR INDUSTRIES 1 Total index. 100.0 107.1 105.7 105.0 105.5 106.4 107.3 108.1 108.0 108.4 108.4 108.1 107.4 106.6 2 Manufacturing 84.4 107.4 106.1 105.2 105.9 106.6 107.5 108.3 108.4 108.9 109.0 108.6 108.1 107.4 3 Primary processing .. 26.7 102.4 100.8 99.0 99.6 100.7 102.1 103.7 104.1 104.4 104.7 104.1 103.5 103.3 4 Advanced processing 57.7 109.8 108.5 108.0 108.9 109.3 109.9 110.5 110.3 111.0 111.0 110.7 110.3 109.3 Durable goods 47.3 107.1 106.1 105.0 106.0 106.7 107.3 108.1 107.8 108.4 108.2 107.8 106.9 105.8 Lumber and products ... 24 2.0 94.2 91.5 91.2 92.7 92.5 96.7 94.8 95.3 95.2 93.8 96.4 95.4 97.3 Furniture and fixtures ... 25 1.4 99.1 94.9 95.4 98.3 98.5 99.4 100.5 101.3 101.2 100.5 99.9 100.4 99.6 Clay, glass, and stone products 32 2.5 94.9 98.9 94.4 94.2 95.1 95.0 95.8 95.5 94.4 94.4 92.8 92.3 92.1 Primary metals 33 3.3 99.5 99.5 94.7 94.5 96.9 96.4 101.2 102.6 102.3 102.6 103.5 101.2 103.9 Iron and steel 331,2 1.9 98.0 98.0 92.0 91.6 94.0 92.9 99.5 100.6 100.8 102.4 105.6 101.7 106.8 Raw steel .1 97.3 97.9 89.8 91.0 88.9 94.0 102.6 102.4 100.9 101.3 99.1 97.6 103.3 Nonferrous 333-6,9 1.4 101.5 101.6 98.4 98.5 101.0 101.5 103.5 105.5 104.4 102.9 100.5 100.3 99.8 Fabricated metal products 5.4 100.4 99.1 97.8 98.0 99.1 99.8 100.9 101.4 101.9 101.9 101.8 101.0 99.5 Nonelectrical machinery. 8.6 123.5 124.5 123.1 123.5 123.6 123.4 123.9 123.3 123.1 123.5 122.8 121.8 120.9 Office and computing machines 357 2.5 155.5 157.3 155.1 155.6 155.6 154.0 156.0 153.0 152.2 155.9 157.8 159.1 160.5 Electrical machinery 36 8.6 110.1 108.2 108.6 109.7 110.6 111.5 111.0 111.5 111.0 109.8 110.7 110.5 109.9 Transportation equipment 37 9.8 98.6 95.5 95.0 97.2 98.2 99.7 101.3 99.0 102.2 102.4 99.7 98.1 93.6 Motor vehicles and parts 371 4.7 90.4 79.4 79.8 86.2 89.8 92.5 96.7 91.6 99.5 100.4 95.9 94.6 87.0 Autos and light trucks 2.3 89.4 75.3 76.6 84.0 88.2 91.2 97.3 89.1 101.8 103.2 97.6 95.5 83.5 Aerospace and miscellaneous transportation equipment.. 372-6,9 5.1 106.0 110.0 108.8 107.2 105.8 106.1 105.4 105.6 104.6 104.3 103.1 101.2 99.5 Instruments 38 3.3 118.2 119.3 118.4 118.6 118.2 117.3 116.5 116.9 118.1 118.2 118.7 118.5 118.0 Miscellaneous 39 1.2 119.3 114.6 115.3 117.5 118.7 119.8 121.6 123.2 121.5 120.6 120.7 121.1 121.2 23 Nondurable goods 37.2 107.9 106.0 105.4 105.9 106.5 107.6 108.6 109.0 109.6 110.1 109.6 109.7 109.4 24 Foods 8.8 108.5 107.6 107.4 107.6 107.8 108.6 108.3 108.7 109.5 109.4 110.1 109.7 109.4 25 Tobacco products 1.0 100.0 100.1 98.2 97.6 98.7 99.4 102.6 103.1 102.7 102.2 97.7 99.3 100.1 26 Textile mill products ... 1.8 100.7 94.3 95.4 97.2 99.2 101.7 104.2 104.7 103.2 105.5 104.4 103.8 103.3 27 Apparel products 2.4 96.2 93.1 92.5 93.2 95.2 96.2 97.8 98.3 98.1 98.7 98.8 98.7 98.2 28 Paper and products 3.6 105.1 102.2 101.3 101.3 101.3 105.3 108.1 106.5 108.0 109.0 106.1 107.0 104.3 29 Printing and publishing . 6.4 112.3 110.9 110.4 110.7 110.6 111.2 111.9 112.3 113.3 114.4 114.2 113.6 114.0 30 Chemicals and products 8.6 110.9 109.1 108.2 109.0 109.2 109.6 111.5 112.3 112.6 113.5 113.0 113.2 113.6 31 Petroleum products 1.3 107.5 108.8 108.5 105.7 107.5 109.6 108.3 107.3 108.6 106.0 106.7 109.3 107.8 32 Rubber and plastic products 3.0 110.0 106.1 104.4 106.6 109.2 110.5 110.1 112.6 113.8 113.2 112.6 112.8 113.3 33 Leather and products .. .3 88.1 90.8 91.5 90.0 89.5 90.9 91.0 87.1 85.8 83.9 84.3 83.2 81.8 34 Mining 7.9 101.1 102.9 101.5 100.9 100.2 102.1 102.7 101.3 101.4 100.7 99.6 98.7 97.1 35 Metal 10 .3 150.2 148.0 147.6 145.7 148.0 157.0 153.0 155.5 153.1 146.5 151.5 153.9 148.6 36 Coal 11,12 1.2 109.2 112.8 109.9 105.9 103.4 110.2 116.0 110.8 110.1 107.9 108.4 107.6 107.3 37 Oil and gas extraction.... 13 5.7 95.8 97.2 96.4 96.6 96.0 96.9 96.4 95.7 96.0 96.0 94.1 92.7 90.9 38 Stone and earth minerals . 14 .7 108.2 112.0 108.0 107.0 107.5 106.4 107.8 107.0 107.3 105.9 105.8 107.7 107.6 39 Utilities... 7.6 109.2 104.6 106.4 105.9 111.4 111.5 110.9 110.7 109.7 109.4 111.0 107.9 107.3 40 Electric. 491.3PT 6.0 112.7 107.8 109.8 109.8 116.4 117.1 116.6 115.6 113.4 112.2 112.7 110.2 109.7 41 Gas .... 492,3PT 1.6 95.8 92.8 93.6 91.6 92.8 90.7 89.7 92.4 95.8 98.9 104.7 99.3 98.1 SPECIAL AGGREGATES 42 Manufacturing excluding motor vehicles and parts 79.8 108.4 107.6 106.7 107.1 107.6 108.3 109.0 109.3 109.5 109.5 109.3 108.9 108.6 43 Manufacturing excluding office and computing machines 82.0 106.0 104.5 103.7 104.4 105.1 106.1 106.9 107.0 107.6 107.6 107.1 106.6 105.8 Gross value (billio ns of 1 )82 dolla rs, annu al rates) MAJOR MARKETS 44 Products, total 1,734.8 1,879.8 1,848.4 1,845.4 1,853.3 1,875.7 1,890.5 1,895.3 1,885.5 1,901.8 1,911.4 1,904.9 1,891.0 1,874.7 45 Final 1,350.9 1,481.8 1,452.8 1,455.6 1,464.6 1,478.1 1,490.5 1,496.1 1,484.5 1,501.5 1,510.0 1,504.1 1,490.0 1,472.5 46 Consumer goods . 833.4 879.8 852.7 857.4 862.9 874.4 884.2 888.3 882.7 898.3 902.4 902.2 897.1 881.6 47 Equipment 517.5 602.0 600.1 598.2 601.7 603.7 606.2 607.8 601.8 603.3 607.6 601.8 592.9 590.9 48 Intermediate 384.0 397.9 395.6 389.8 388.7 397.6 400.1 399.2 401.0 400.3 401.4 400.8 401.0 402.2 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 1992 IItteemm 11998899 11999900 11999911RR Apr. May June July Aug. Sept. Oct. Nov." Dec." Jan. Private residential real estate activity (thousands of units, except as noted) NEW UNITS 1 Permits authorized 1,339 1,111 961 913 966 999 1,005 953 982 1,028 993 1,055 1,111 ? One-family 932 794 759 742 760 780 794 769 782 7% 787 851 912 3 Two-or-more-family 407 317 202 171 206 219 211 184 200 232 206 204 199 4 Started 1,376 1,193 1,014 978 983 1,036 1,053 1,053 1,020 1,085 1,085 1,118 1,190 One-family 1,003 895 840 802 830 870 881 881 864 887 907 972 999 6 Two-or-more-family 373 298 174 176 153 166 172 172 156 198 178 146 191 7 Under construction at end of period .. 850 711 610 674 665 654R 652 648R 632 631" 633 637 647 8 One-family 535 449 435 442R 445R 446 452R 455 452R 451" 454 460 471 9 Two-or-more-family 315 262 175 232R 220R 208R 200R 193R 180" 180 179 177 176 10 Completed 1,423 1,308 1,090 L,090R L,072R 1,104" L,065R 1,051R L,193R 1,073" 1,021 1,005 1,018 11 One-family 1,026 966 836 823R 803R 817R 809" 821 870" 879" 824 836 813 1? Two-or-more-family 396 342 253 267R 269" 287R 256R 230" 323" 194" 197 169 205 13 Mobile homes shipped 198 188 171 177 173 172 175 175 172 171 171 176 192 Merchant builder activity in one-family units 14 Number sold 650 535 505 505R 51 R 513R 505R 522 449999"" 526" 568 554422 661122 15 Number for sale at end of period ... 365R 32 R 283 302R 298R 296R 295R 292R 292" 289" 286 283 283 Price of units sold (thousands of dollars)2 16 120.4 122.3 120.0 121.0 116.0 119.0 120.0 120.8 120.0 122.6" 111188..55 112222..00 112255..00 17 Average 148.3 149.0 147.2 150.8 145.4 145.9 148.2 141.8 147.3 147.4" 142.2 144.3 150.4 EXISTING UNITS (one-family) 18 Number sold 3,346R 3,211R 3,219 3,240R 3,430*^ 3,440R 3,230" 3,160" 3,080" 3,120" 3,200 3,270 3,220 Price of units sold (thousands of dollars)2 19 Median 92.9 95.2 99.7 100.5R 101.3R 102. R 103.4R 102.0R 100.3" 9999..11"" 9977..99 110000..33 110022..44 20 Average 118.0 118.3 127.4 129.0R 130.8R 130.6R 132.2 130.9R 127.8" 126.4 124.9 127.3 130.5 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 443,720 446,433 403,971 407,050 399,030 398,189 398,409 403,151 406,983 410,342 405,442 398,946 404,051 77 345,416 337,776 295,191 299,044 291,048 290,871 290,299 293,402 2%,621 297,537 293,207 290,691 294,626 73 Residential 196,551 182,856 160,567 151,836 154,567 158,282 158,039 162,800 166,578 168,251 165,965 164,310 168,008 74 Nonresidential, total 148,865 154,920 134,624 147,208 136,481 132,589 132,260 130,602 130,043 129,286 127,242 126,381 126,618 ?5 Industrial buildings 20,412 23,849 21,732 24,301 20,683 20,868 20,885 20,418 20,321 21,494 21,665 22,537 22,5% 76 Commercial buildings 65,496 62,866 47,997 54,824 50,220 47,5% 47,144 46,341 45,589 44,479 42,193 40,905 40,107 71 Other buildings 19,683 21,591 20,707 21,928 20,858 20,429 20,674 19,973 20,615 20,708 20,390 20,933 21,180 28 Public utilities and other 43,274 46,614 44,188 46,155 44,720 43,6% 43,557 43,870 43,518 42,605 42,994 42,006 42,735 79 Public 98,303 108,655 108,781 108,007 107,982 107,318 108,110 109,749 110,361 112,805 112,236 108,255 109,425 30 3,520 2,734 1,854 1,828 1,918 1,864 1,759 1,783 2,261 1,205 1,914 2,249 2,045 31 Highway 28,171 30,595 29,012 28,591 29,246 28,776 28,854 30,047 28,610 29,079 28,651 28,492 27,879 3? Conservation and development... 4,989 4,718 5,334 5,833 5,123 5,807 4,688 4,901 4,226 6,109 6,803 5,467 5,622 33 Other 61,623 70,608 72,581 71,755 71,695 70,871 72,809 73,018 75,264 76,412 74,868 72,047 73,879 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 17,000jurisdictions beginning in 1984. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • May 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 IIIttteeemmm llleeevvveeelll,,, 1991 1991 1992 FFFeeebbb... 11999911 11999922 111999999222 FFeebb.. FFeebb.. Mar. June Sept. Dec. Oct. Nov. Dec. Jan. Feb. CONSUMER PRICES2 (1982-84=100) 1 All items 5.3 2.8 2.7 3.0 3.0 3.2 .2 .4 .2 .1 .3 138.6 2 Food 3.2 1.5 2.4 4.8 -2.3 2.7 -.1 .4 .3 -.4 .3 137.5 3 Energy items 4 All items less food and energy 6.6 -3.7 -29.4 -.8 1.2 3.6 .0 .8 .1 -1.5 -.9 99.0 S Commodities 5.6 3.8 6.8 3.2 4.6 3.1 .2 .3 .2 .3 .4 145.6 6 Services 4.2 2.9 8.2 2.2 4.4 .6 .1 .3 -.2 .2 .6 131.0 6.5 4.1 6.2 3.3 4.6 4.3 .3 .3 .4 .4 .3 154.0 PRODUCER PRICES (1982=100) 7 Finished goods 3.4 .4 -2.9 .7 1.3 1.0 .2r ,lr -.1 -.3 .2 121.9 8 Consumer foods .0 -.9 .0 -.6 -4.4 -1.3 .0 -.2 -.2 -.3 1.1 123.5 9 Consumer energy 13.3 -5.7 -32.6 -1.5 3.7 -.5 1.2 .1 -1.4 -2.8 -.1 73.9 10 Other consumer goods 4.2 2.8 5.6 1.8 3.6 2.4 .2r .1 .2 .4 .1 136.4 11 Capital equipment 3.7 1.7 5.2 1.6 1.3 1.9 .2 .2 .2 .2 .0 128.3 Intermediate materials 12 Excluding foods and feeds 2.8 -1.6 -7.6 -1.0 .4 -1.7 -.3 .(f -.2 -.5 .5 113.8 13 Excluding energy 1.8 -.7 -1.0 -.7 -1.3 .0 -.2r .R .1 -.2 .4 121.4 Crude materials 14 Foods -5.8 -.8 -3.6 -8.6 -6.6 -3.8 .0R -.6r -.4 1.7 2.2 106.4 15 Energy .6 -8.4 -54.0 .5 -.5 4.8 4.7r .6r -3.9 -3.5 1.2 76.1 16 Other 1.6 -6.7 -5.3 -14.1 -4.9 -7.4 -.5 -1.3 -.2 .0 1.4 124.5 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 11998899 11999900 11999911rr Q4 Ql Q2 Q3 Q4r GROSS DOMESTIC PRODUCT 1 Total 5,244.0 5,513.8 5,674.4 5,557.5 5,589.0 5,652.6 5,709.2 5,746.7 By source 4 5 2 3 Pe D N S rs e u o o r n r n v a d a i b c u l 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 , , , 5 4 9 1 1 5 1 4 7 9 1 6 . . . . 8 9 2 9 3 2 1 , . . 0 7 4 2 5 4 6 1 9 2 5 7 : . . . 6 9 0 7 3 2 1 , , , 1 8 4 2 9 8 4 5 1 8 5 2 . . . . 1 1 8 5 3 2 1 , , , 1 8 4 2 1 1 5 4 3 2 1 6 . . . . 6 9 0 4 3 2 1 , , , 1 8 4 2 4 2 4 4 0 7 0 6 . . . . 7 7 7 3 3 2 1 . . , 8 1 4 2 6 7 4 5 8 5 0 2 . . . . 5 6 0 9 2 3 1 , , , 2 9 4 2 0 1 5 5 6 6 2 7 . . . . 1 4 9 4 2 3 1 , , , 2 9 4 2 4 4 4 5 2 2 6 3 . . . . 2 4 9 4 6 Gross private domestic investment 837.6 802.6 727.4 750.9 709.3 708.8 740.9 750.5 7 Fixed investment 801.6 802.7 744.9 787.4 748.4 745.8 744.5 740.8 8 Nonresidential 570.7 587.0 549.7 585.2 560.0 554.6 546.8 537.4 9 Structures 193.1 198.7 174.7 191.2 184.0 180.0 169.0 165.9 10 Producers' durable equipment 377.6 388.3 375.0 394.0 375.9 374.7 377.8 371.5 11 Residential structures 230.9 215.7 195.2 202.2 188.4 191.2 197.7 203.4 12 Change in business inventories 36.0 .0 -17.5 -36.5 -39.2 -37.1 -3.6 9.7 13 Nonfarm 35.5 -2.0 -14.1 -28.9 -35.0 -34.0 -3.2 15.9 14 Net exports of goods and services -82.9 -74.4 -29.4 -76.6 -36.8 -17.2 -37.3 -26.3 15 Exports 504.9 550.4 592.5 572.6 565.9 589.8 597.0 617.2 16 Imports 587.8 624.8 621.9 649.2 602.7 607.0 634.3 643.5 17 Government purchases of goods and services .. 971.4 1,042.9 1,087.6 1,071.2 1,088.8 1,092.5 1,089.1 1,080.1 18 Federal 401.4 424.9 445.0 434.5 451.5 452.1 444.9 431.6 19 State and local 570.0 618.0 642.6 636.7 637.3 640.4 644.2 648.5 By major type of product 20 Final sales, total 5.208.1 5,513.8 5,691.9 5,594.0 5,628.2 5.689.6 5,712.8 5.737.0 21 Goods 2,062.1 2,167.6 2,211.6 2,194.5 2,208.6 2,223.2 2,214.1 2,200.5 22 Durable 892.9 934.7 925.8 927.2 916.4 939.5 929.4 917.8 23 Nondurable 1.169.2 1,233.0 1,285.8 1,267.3 1,292.1 1.283.7 1,284.7 1,282.8 24 Services 2,634.7 2,834.0 3,013.2 2,905.5 2,951.7 2,999.0 3,035.1 3.067.1 25 Structures 511.3 512.2 467.0 494.0 467.9 467.4 463.5 469.3 26 Change in business inventories 36.0 .0 -17.5 -36.5 -39.2 -37.1 -3.6 9.7 27 Durable goods 26.9 -7.0 -25.0 -29.4 -43.5 -33.5 -9.2 -13.7 28 Nondurable goods 9.1 7.0 7.4 -7.1 4.3 -3.6 5.6 23.4 MEMO 4,836.9 4,884.9 4,849.9 4,855.1 4,824.0 4,840.7 4,862.7 4,872.2 29 Total GDP in 1987 dollars NATIONAL INCOME 4,244.7 4,459.6 n.a. 4,506.8 4,489.8 4,530.8 4,559.8 n.a. 30 Total 3,101.3 3,290.3 3,388.3 3,340.0 3,342.9 3,377.4 3.405.3 3.427.6 31 Compensation of employees 2,585.8 2,738.9 2,808.3 2,778.3 2,771.1 2,800.2 2.822.4 2.839.7 32 Wages and salaries 478.6 514.0 540.5 525.4 536.0 540.1 541.8 544.2 33 Government and government enterprises .. 2,107.2 2,224.9 2,267.8 2,253.0 2,235.1 2,260.1 2,280.6 2,295.5 34 Other 515.5 551.4 580.0 561.6 571.8 577.2 582.9 587.9 35 Supplement to wages and salaries 261.7 277.3 289.3 281.7 287.5 288.7 290.2 290.9 36 Employer contributions for social insurance 253.7 274.0 290.6 279.9 284.2 288.5 292.8 297.0 37 Other labor income 38 Proprietors' income1 347.0 373.2 379.8 373.9 364.2 380.0 382.5 392.5 39 Business and professional 305.5 330.7 344.7 332.7 331.4 340.4 350.5 356.4 40 Farm1 41.4 42.5 35.1 41.2 32.8 39.6 32.0 36.1 41 Rental income of persons2 -7.9 -12.9 -12.8 -9.5 -11.9 -11.7 -14.2 -13.6 42 Corporate profits' 351.7 319.0 n.a. 296.1 302.1 303.5 306.1 n.a. 43 Profits before tax3 344.5 332.3 n.a. 326.1 309.1 306.2 318.2 n.a. 44 Inventory valuation adjustment -17.5 -14.2 3.4 -21.2 6.7 9.9 -4.8 1.9 45 Capital consumption adjustment 24.7 .8 -8.7 -8.8 -13.6 -12.6 -7.3 -1.2 46 Net interest 452.6 490.1 481.5 506.4 492.6 481.6 480.1 471.8 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 • May 1992 2.17 PERSONAL INCOME AND SAVING Billions of current dollars, except as noted; quarterly data at seasonally adjusted annual rates 1990 1991 AAccccoouunntt 11998899 11999900 11999911rr Q4 Q1 Q2 Q3 Q4r PERSONAL INCOME AND SAVING 1 Total personal income 4,380.2 4,679.8 4,835.3 4,764.7 4,768.0 4,821.1 4,853.3 4,898.8 2 Wage and salary disbursements 2,585.8 2,738.9 2,808.4 2,778.2 2,770.9 2,800.6 2,822.4 2,839.7 3 Commodity-producing industries 723.8 745.4 738.7 745.2 733.4 735.2 742.3 744.1 4 Manufacturing 542.1 555.8 556.4 557.3 549.3 552.3 559.9 564.3 5 Distributive industries 607.5 634.6 641.2 639.0 635.1 642.0 644.0 643.8 6 Service industries 775.9 845.0 887.9 868.8 866.5 883.0 894.4 907.7 7 Government and government enterprises 478.6 514.0 540.6 525.2 535.8 540.5 541.8 544.2 8 Other labor income 253.7 274.0 290.6 279.9 284.2 288.5 292.8 297.0 9 Proprietors' income1 347.0 373.2 379.8 373.9 364.2 380.0 382.5 392.5 10 Business and professional 305.5 330.7 344.7 332.7 331.4 340.4 350.5 356.4 11 Farm1 41.4 42.5 35.1 41.2 32.8 39.6 32.0 36.1 12 Rental income of persons -7.9 -12.9 -12.8 -9.5 -11.9 -11.7 -14.2 -13.6 13 Dividends 119.8 124.8 128.5 127.0 128.7 127.4 128.7 129.4 14 Personal interest income 669.0 721.3 719.7 736.9 730.1 721.8 716.7 710.1 15 Transfer payments 624.4 684.9 759.2 705.8 737.2 751.5 763.7 784.2 16 Old-age survivors, disability, and health insurance benefits ... 325.1 352.0 379.7 358.4 373.1 377.2 381.7 386.9 17 LESS: Personal contributions for social insurance 211.7 224.3 238.0 227.5 235.4 237.0 239.3 240.4 18 EQUALS: Personal income 4,380.2 4,679.8 4,835.3 4,764.7 4,768.0 4,821.1 4,853.3 4,898.8 19 LESS: Personal tax and nontax payments 591.7 621.0 616.1 627.2 617.1 613.6 615.1 618.5 20 EQUALS: Disposable personal income 3,788.6 4,058.8 4,219.2 4,137.5 4,151.0 4,207.5 4,238.2 4,280.3 21 LESS: Personal outlays 3,622.4r 3,853. lr 3,998.6 3,922.5r 3,938.4r 3,978.7r 4,025.7r 4,051.8 22 EQUALS: Personal saving 166.1r 205.8r 220.6 215.0r 212.6r 228.8R 212.5R 228.6 MEMO Per capita (1987 dollars) 23 Gross domestic product 19,550.5 19,540.2r 19,194.2 19,337.3 19,166.5 19,187.7 19,220^ 19,201.5 24 Personal consumption expenditures 13,027.6 13,050.8r 12,896.4 12,951.6 12,877.4 12,892.0 12,930.2r 12,885.2 25 Disposable personal income 14,030.0 14,154.0 13,992.0 14,058.0 13,965.0 14,022.0 13,992.0 13,990.0 26 Saving rate (percent) 4.4 5.1 5.2 5.2 5.1 5.4r 5.0 5.3 GROSS SAVING 27 Gross saving 743.4R 710.9* n.a. 677.5R 746.9r 7I3.r 697.2r n.a. 28 Gross private saving 826.5r 850.4r n.a. 853. r 873.0r 892. r 875.5r n.a. 29 Personal saving 166.T 205.8r 220.6 215.0r 212.6r 228.8r 212.5R 228.6 30 Undistributed corporate profits1 85.8 49.9 n.a. 32.8 45.0 43.4 39.4 n.a. 31 Corporate inventory valuation adjustment -17.5 -14.2 3.4 -21.2 6.7 9.9 -4.8 1.9 Capital consumption allowances 32 Corporate 350.5 365.5 383.6 372.7 380.1 383.2 384.6 386.5 33 Noncorporate 224.0 229.3 239.3 232.7 235.3 236.8 239.1 246.1 34 Government surplus, or deficit (-), national income and product accounts -83.0 -139.5 -170.9 -175.6 -126.1 -179.1 -178.4 n.a. 35 Federal -124.2 -165.3 -200.5 -193.6 -146.4 -206.7 -210.2 n.a. 36 State and local 41.1 25.7 29.6 18.0 20.4 27.6 31.8 n.a. 37 Gross investment 740.7r 719.0r 735.8 679.6r 764.9r 729.6R 719.1R 729.4 38 Gross private domestic 837.6 802.6 727.4 750.9 709.3 708.8 740.9 750.5 39 Net foreign -96.8r -83.6r n.a. -71.3r 55.7r 20.8r -21.8r n.a. 40 Statistical discrepancy -2.7 8.1 n.a. 2.1 18.0 16.5 22.0 n.a. 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 1991 Q4 Q1 Q2 Q3r Q4P -106,304 -92,123 -8,616 -23,402 10,374r 2,897r -11,617 -10,266 Not seasonally adjusted -25,136 15,507 4,593 -16,502 -12,213 Merchandise trade balance2 -115,917 -108,115 -73,586 -27,728 -18,538r -15,537r -20,849 -18,662 Merchandise exports 361,451 389,550 416,517 100,580 100,549r 103,889r 104,018 108,061 Merchandise imports -477,368 -497,665 -490,103 -128,308 -119,087r -119,426r -124,867 -126,723 Military transactions, net -6,203 -7,219 -5,280 -2,243 -2,329 -1,484 -882 -584 Investment income, net 2,689 11,945 9,364 6,133 4,902r 2,365r 1,863 234 Other service transactions, net 28,618 33,595 41,158 9,716 9,420r 10,445r 11,131 10,163 Remittances, pensions, and other transfers . -4,420 -4,843 -5,383 -1,201 -1,336r -l,336r -1,293 -1,417 U.S. government grants (excluding military) -11,071 -17,486 25,111 -8,079 18,255 8,444 -1,587 0 11 Change in U.S. government assets other than official reserve assets, net (increase, -) 1,320 2,976 3,572 4,759 1,422 -493 3,197 -553 12 Change in U.S. official reserve assets (increase, -). -25,293 -2,158 5,763 -1,092 -353 1,014 3,877 1,225 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -535 -192 -177 -93 31 -190 6 -23 15 Reserve position in International Monetary Fund. 471 731 -367 -4 -341 72 -114 17 16 Foreign currencies -25,229 -2,697 6,307 -995 -43 1,132 3,986 1,232 17 Change in U.S. private assets abroad (increase, -). -104,637 -58,524 -77,082 -38,370 -2,192r -15,702r -18,281 -40,908 18 Bank-reported claims3 -51,255 5,333 3,428 -24,513 20,598 1,215 2,325 -20,710 2 1 0 9 U No .S n . b p an u k rc -r h e a p s o e r s t o ed f f c o l r a e i i m gn s securities, net -22 2 , , 5 5 7 8 5 1 -2 -1 8 , , 9 4 4 7 4 6 -4 -4 6 , , 7 2 9 1 8 5 - - 2 7 , , 5 5 0 4 9 6 - - 1 9 , , 3 4 0 3 8 0 -1 -2 2 , , 0 8 7 3 6 3 -1 -1 2 , , 4 5 1 3 4 3 :ii,419 21 U.S. direct investments abroad, net -33,388 -33,437 -29,497 -3,802 -12,052r -2,008r -6,659 -8,779 22 Change in foreign official assets in United States (increase, +) .. 8,624 32,425 20,585 20,301 6,631 -3,105 3,854 13,205 23 U.S. Treasury securities 149 28,643 18,623 20,119 2,381 -2,287 5,799 12,730 24 Other U.S. government obligations 1,383 667 926 708 -29 -219 407 767 25 Other U.S. government liabilities4 281 1,703 1,603 1,102 1,012 370 453 -232 26 Other U.S. liabilities reported by U.S. banks3 4,976 2,998 -1,856 -707 2,501 -1,084 -2,830 -443 27 Other foreign official assets' 1,835 -1,586 1,289 -921 766 115 25 383 28 Change in foreign private assets in United States (increase, +).. 207,925 53,879 58,918 18,732 -7,360 6,608 23,125 36,546 29 U.S. bank-reported liabilities3 63,382 9,975 -15,046 17,261 -18,795 -28,687 6,474 25,962 30 U.S. nonbank-reported liabilities 5,454 3,779 -511 -1,840 -1,616 -760 1,865 31 Foreign private purchases of U.S. Treasury securities, net 29,618 1,131 16,861 -2,029 3,409 13,434 -1,468 i ,486 32 Foreign purchases of other U.S. securities, net 38,920 1,781 35,417 802 5,306 15,073 10,154 4,884 33 Foreign direct investments in United States, net 70,551 37,213 22,198 4,538 4,336 7,548 6,100 4,214 34 Allocation of special drawing rights 0 0 0 0 0 0 0 0 35 Discrepancy 18,366 63,526 -3,139 19,072 -8,522r 8,781r -4,156 750 36 Due to seasonal adjustments 2,007 4,322r 496r -6,232 1,407 37 Statistical discrepancy in recorded data before seasonal adjustment 18,366 63,526 -3,139 17,066 -12,844 8,285 2,076 -657 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) -25,293 -2,158 5,763 -1,092 -353 1,014 3,878 1,226 39 Foreign official assets in United States excluding line 25 (increase, +) 8,343 30,722 18,982 19,199 5,619 -3,475 3,401 13,437 40 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) 10,738 2,163 -3,656 575 -3,162 -4,352 2,870 1. Seasonal factors not calculated for lines 6, 10, 12-16, 18-20, 22-34, and cial banks, as well as some brokers and dealers. 38-40. 4. Associated primarily with military sales contracts and other transactions 2. Data are on an international accounts (IA) basis. The data differ from the arranged with or through foreign official agencies. Census basis data, shown in table 3.11, for reasons of coverage and timing. 5. Consists of investments in U.S. corporate stocks and in debt securities of Military exports are excluded from merchandise trade data and are included in private corporations and state and local governments. line 6. SOURCE. Survey of Current Business (U.S. Department of Commerce). 3. Reporting banks include all kinds of depository institutions besides commer- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • May 1992 3.11 U.S. FOREIGN TRADE1 Millions of dollars; exports, F.A.S. value; imports, Customs value; monthly data seasonally adjusted 1991 1992 IItteemm 11998899 11999900 11999911rr July Aug. Sept. Oct. Nov. Dec.r Jan.p 1 Exports of domestic and foreign merchandise, excluding grant-aid shipments 363,812 393,592 421,614 35,227 34,380 35,348 37,114 36,939 35,887 35,539 2 General imports, including merchandise for immediate consumption plus entries into bonded warehouses 473,211 495,311 487,870 41,176 40,910 42,282 43,434 41,109 41,886 41,305 3 Trade balance -109,399 -101,718 -66,256 -5,949 -6,530 -6,934 -6,320 -4,171 -5,999 -5,766 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 1992 Type 1989 1990 Aug. Sept. Oct. Jan.r Feb." 1 Total 47,802 74,609 83,316 73,514 74,731 74,508 74,651 77,719 75,868 2 Gold stock, including Exchange Stabilization Fund1 11,057 11,059 11,058 11,062 11,062 11,059 11,058 11,057 11,058 3 Special drawing rights 3 9,637 9,951 10,989 10,479 10,722 10,710 10,942 11,240 10,980 4 Reserve position in International Monetary Fund 9,745 9,048 9,076 8,726 9,094 9,065 8,943 9,488 9,113 5 Foreign currencies 17,363 44,551 52,193 43,247 43,853 43,674 43,708 45,934 44,717 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 1992 AAsssseettss 11998888 11998899 11999900 Aug. Sept. Oct. Nov. Dec. Jan.r Feb.P 1 Deposits 347 589 369 256 384 223 346 968 321 264 Assets held in custody 2 U.S. Treasury securities 232,547 224,911 278,499 279,394 279,013 280,249 285,905 281,107 293,958 297,834 3 Earmarked gold3 13,636 13,456 13,387 13,330 13,330 13,326 13,307 13,303 13,303 13,305 1. Excludes deposits and U.S. Treasury securities held for international and 3. Earmarked gold and the gold stock are valued at $42.22 per fine troy ounce, regional organizations. Earmarked gold is gold held for foreign and international accounts; it is not 2. Marketable U.S. Treasury bills, notes, and bonds and nonmarketable U.S. included in the gold stock of the United States. Treasury securities payable in dollars and in foreign currencies at face value. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A55 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data1 Millions of dollars, end of period 1991 1992 AAsssseettss 11998888 11998899 11999900 July Aug. Sept. Oct. Nov. Dec. Jan. All foreign countries 1 Total, all currencies 505,595 545,366 556,925 529,313 528,077 547,038r 546,570 550,777 548,901r 547,968 ? Cl P ai a m re s n o t n b a U n n k i ted States 1 1 2 6 9 9, , 1 8 1 5 1 6 1 1 9 5 8 7 , , 8 0 3 9 5 2 1 1 4 8 8 8 , , 8 4 3 % 7 1 13 7 7 4 , , 1 8 5 0 9 2 1 1 3 6 0 9, , 0 1 6 6 1 9 1 1 7 3 7 7 , , 5 0 7 3 2 6 1 1 3 7 6 6 , , 5 9 7 5 0 9 1 1 3 7 7 7 , , 1 8 6 2 5 8 1 1 7 3 6 7 , , 3 5 0 0 1 9 r r 1 14 8 2 0 , , 4 2 8 9 3 8 4 Other banks in United States 14,918 17,042 13,296 11,100 12,447 13,692 13,432 13,543 12,884 11,715 5 Nonbanks 24,337 24,701 26,363 26,543 26,445 26,844 26,957 27,120 25,908 26,100 6 Claims on foreigners 299,728 300,575 312,449 294,826 296,855 299,910r 299,915 304,212r 303,934 297,154 7 Other branches of parent bank 107,179 113,810 135,003 112,205 112,916 114,526r 108,269 107,343r 111,729 103,456 8 Banks 96,932 90,703 72,602 77,711 76,393 77,293 80,060 84,980 81,970 82,081 9 Public borrowers 17,163 16,456 17,555 18,416 19,110 18,930 18,685 18,940 18,652 18,223 10 Nonbank foreigners 78,454 79,606 87,289 86,494 88,436 89,161 92,901 92,949 91,583 93,394 11 Other assets 36,756 45,956 55,980 59,685 62,161 69,556r 69,696 68,737r 68,666r 70,516 12 Total payable in U.S. dollars 357,573 382,498 379,479 365,008 359,316 367,828r 365,223 365,143 363,941r 359,651 n Claims on United States 163,456 191,184 180,174 168,353 163,593 171,393 170,615 171,701 169,662r 174,033 14 Parent bank 126,929 152,294 142,962 132,883 126,746 133,450 132,929 133,984 133,476r 138,892 15 Other banks in United States 14,167 16,386 12,513 10,605 11,973 13,109 12,904 12,668 12,025 10,924 16 Nonbanks 22,360 22,504 24,699 24,865 24,874 24,834 24,782 25,049 24,161 24,217 17 Claims on foreigners 177,685 169,690 174,451 169,494 167,039 166,677r 164,543 165,653r 167,010 157,132 18 Other branches of parent bank 80,736 82,949 95,298 79,112 79,317 79,sec 75,649 75,986r 78,114 70,637 19 Banks 54,884 48,396 36,440 45,589 41,761 40,656 41,132 42,808 41,635 39,753 70 Public borrowers 12,131 10,961 12,298 13,565 14,160 13,609 13,889 13,671 13,685 13,202 71 Nonbank foreigners 29,934 27,384 30,415 31,228 31,801 32,552 33,873 33,188 33,576 33,540 22 Other assets 16,432 21,624 24,854 27,161 28,684 29,758r 30,065 27,789r 27,269 28,486 United Kingdom 23 Total, all currencies 156,835 161,947 184,818 161,869 162,879 172,113 172,795 174,648 175,599 174,467 74 Claims on United States 40,089 39,212 45,560 32,475 31,315 34,409 32,615 32,531 35,257 36,660 75 Parent bank 34,243 35,847 42,413 29,241 28,189 31,205 29,021 28,901 31,931 32,765 76 Other banks in United States 1,123 1,058 792 860 816 997 1,502 1,259 1,267 1,432 77 Nonbanks 4,723 2,307 2,355 2,374 2,310 2,207 2,092 2,371 2,059 2,463 78 Claims on foreigners 106,388 107,657 115,536 103,067 103,935 105,699 108,397 lll,323r 109,692 108,006 79 Other branches of parent bank 35,625 37,728 46,367 36,588 38,382 39,077 36,757 36,637r 35,735 33,357 30 Banks 36,765 36,159 31,604 31,866 30,168 31,658 33,375 36,709 36,394 36,497 31 Public borrowers 4,019 3,293 3,860 3,676 3,717 3,502 3,492 3,512 3,306 3,377 V Nonbank foreigners 29,979 30,477 33,705 30,937 31,668 31,462 34,773 34,465 34,257 34,775 33 Other assets 10,358 15,078 23,722 26,327 27,629 32,005 31,783 30,794r 30,650 29,801 34 Total payable in U.S. dollars 103,503 103,208 116,762 101,040 100,966 105,243 103,439 103,591 105,974 103,833 35 Claims on United States 38,012 36,404 41,259 29,352 28,870 31,772 29,995 30,054 32,418 33,801 36 33,252 34,329 39,609 27,085 26,608 29,673 27,404 27,689 30,370 31,239 37 Other banks in United States 964 843 334 759 680 727 1,378 894 822 901 38 Nonbanks 3,7% 1,232 1,316 1,508 1,582 1,372 1,213 1,471 1,226 1,661 39 Claims on foreigners 60,472 59,062 63,701 57,861 56,127 56,354 57,155 59,20c 58,791 55,281 40 Other branches of parent bank 28,474 29,872 37,142 29,111 30,279 30,840 28,655 29,210r 28,667 26,827 41 18,494 16,579 13,135 15,723 12,534 12,485 13,269 15,480 15,219 14,106 47 Public borrowers 2,840 2,371 3,143 3,032 3,083 2,899 2,969 2,848 2,853 2,707 41 Nonbank foreigners 10,664 10,240 10,281 9,995 10,231 10,130 12,262 11,662 12,052 11,641 44 Other assets 5,019 7,742 11,802 13,827 15,%9 17,117 16,289 14,337r 14,765 14,751 Bahamas and Caymans 45 Total, all currencies 170,639 176,006 162,316 170,044 166,333 169,898r 170,529 170,846 168,326r 167,678 46 Claims on United States 105,320 124,205 112,989 114,870 111,787 116,263 117,782 118,164 115,244r 116,694 47 Parent bank 73,409 87,882 77,873 81,974 77,566 80,890 83,286 83,348 81,520r 84,712 48 Other banks in United States 13,145 15,071 11,869 9,683 11,119 12,063 11,028 11,457 10,907 9,626 49 Nonbanks 18,766 21,252 23,247 23,213 23,102 23,310 23,468 23,359 22,817 22,356 50 Claims on foreigners 58,393 44,168 41,356 46,696 46,318 45,321r 43,662 44,177 45,229 42,660 51 Other branches of parent bank 17,954 11,309 13,416 10,880 10,774 10,326r 9,086 10,268 11,098 10,549 5? Banks 28,268 22,611 16,310 21,836 21,113 20,535 20,300 19,865 20,174 18,787 53 Public borrowers 5,830 5,217 5,807 7,136 7,394 7,149 7,435 7,363 7,161 6,600 54 Nonbank foreigners 6,341 5,031 5,823 6,844 7,037 7,311 6,841 6,681 6,7% 6,724 55 Other assets 6,926 7,633 7,971 8,478 8,228 8,314r 9,085 8,505 7,853 8,324 56 Total payable in U.S. dollars 163,518 170,780 158,390 166,115 162,260 165,966r 166,598 166,582 163,771r 163,108 I. 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 • May 1992 3.14—Continued 1991 1992 July Aug. Sept. Oct. Nov. Dec. Jan. All foreign countries 57 Total, all currencies 505,595 545,366 556,925 529,313 528,077 547,038r 546,570 550,777 548,901r 547,968 58 Negotiable certificates of deposit (CDs) .. 28,511 23,500 18,060 19,692 18,7% 17,579 18,928 18,334 16,284 16,156 59 To United States 185,577 197,239 189,412 182,270 178,249 188,381r 186,246 188,686 198,121r 189,231 60 Parent bank 114,720 138,412 138,748 127,284 122,179 131,931r 130,092 131,383 136,431r 127,730 61 Other banks in United States 14,737 11,704 7,463 10,090 10,085 11,843 10,356 12,892 13,040 13,508 62 Nonbanks 56,120 47,123 43,201 44,8% 45,985 44,607 45,798 44,411 48,650 47,993 63 To foreigners 270,923 2%,850 311,668 287,887 290,257 295.3931 295,282 298,152 288,254r 295,713 64 Other branches of parent bank 111,267 119,591 139,113 112,521 112,845 113,849" 108,534 109,085 112,033r 105,725 65 Banks 72,842 76,452 58,986 59,975 62,329 62,665 68,286 67,945 63,097 72,374 66 Official institutions 15,183 16,750 14,791 17,245 18,030 19,420 17,247 19,394 15,5% 16,704 67 Nonbank foreigners 71,631 84,057 98,778 98,146 97,053 99,459 101,215 101,728 97,528r 100,910 68 Other liabilities 20,584 27,777 37,785 39,464 40,775 45,685r 46,114 45,605 46,242 46,868 69 Total payable in U.S. dollars 367,483 396,613 383,522 363,869 360,397 367,450"" 366,449 369,515 370,561r 360,439 70 Negotiable CDs 24,045 19,619 14,094 14,538 14,183 13,180 14,157 13,813 11,909 11,442 71 To United States 173,190 187,286 175,654 170,610 167,207 176,642r 174,274 176,254 185,286r 176,783 72 Parent bank 107,150 132,563 130,510 120,558 115,999 125,429r 123,399 124,625 129,669" 121,2% 73 Other banks in United States 13,468 10,519 6,052 8,815 8,449 10,368 9,011 11,436 11,487 12,016 74 Nonbanks 52,572 44,204 39,092 41,237 42,759 40,845 41,864 40,193 44,130 43,471 75 To foreigners 160,766 176,460 179,002 163,451 164,188 163,299r 161,850 164,275 158,993r 156,191 76 Other branches of parent bank 84,021 87,636 98,128 79,909 79,277 79,427r 75,243 76,224 76,601r 70,691 77 Banks 28,493 30,537 20,251 21,470 23,330 21,239 25,653 24,501 24,156 25,748 78 Official institutions 8,224 9,873 7,921 11,563 11,4% 12,591 10,565 13,375 10,304 10,555 79 Nonbank foreigners 40,028 48,414 52,702 50,509 50,085 50,042 50,389 50,175 47,932 49,197 80 Other liabilities 9,482 13,248 14,772 15,270 14,819 14,329r 16,168 15,173 14,373 16,023 United Kingdom 81 Total, all currencies 156,835 161,947 184,818 161,869 162,879 172,113 172,795 174,648 175,599 174,467 82 Negotiable CDs 24,528 20,056 14,256 14,889 14,148 12,941 14,145 13,506 11,333 10,993 83 To United States 36,784 36,036 39,928 26,599 27,915 31,534 29,137 30,560 37,720 31,018 84 Parent bank 27,849 29,726 31,806 19,545 20,367 23,707 21,080 22,629 29,834 23,112 85 Other banks in United States 2,037 1,256 1,505 1,490 1,662 1,724 2,053 1,934 1,438 2,325 86 Nonbanks 6,898 5,054 6,617 5,564 5,886 6,103 6,004 5,997 6,448 5,581 87 To foreigners 86,026 92,307 108,531 97,263 %,773 98,572 100,267 102,299 98,167 104,868 88 Other branches of parent bank 26,812 27,397 36,709 28,591 27,457 29,898 26,879 26,977 30,054 27,561 89 Banks 30,609 29,780 25,126 24,310 25,131 23,525 28,254 27,959 25,541 31,929 90 Official institutions 7,873 8,551 8,361 10,010 10,722 12,071 10,045 12,628 9,670 10,432 91 Nonbank foreigners 20,732 26,579 38,335 34,352 33,463 33,078 35,089 34,735 32,902 34,946 92 Other liabilities 9,497 13,548 22,103 23,118 24,043 29,066 29,246 28,283 28,379 27,588 93 Total payable in U.S. dollars 105,907 108,178 116,094 99,756 100,131 104,303 103,238 104,433 108,755 103,232 94 Negotiable CDs 22,063 18,143 12,710 12,758 12,337 11,249 12,397 12,042 10,076 9,236 95 To United States 32,588 33,056 34,697 22,355 23,788 27,272 24,394 25,517 33,003 26,419 % Parent bank 26,404 28,812 29,955 17,924 18,949 22,228 19,391 20,923 28,260 21,663 97 Other banks in United States 1,752 1,065 1,156 1,233 1,216 1,259 1,704 1,481 1,177 1,954 98 Nonbanks 4,432 3,179 3,586 3,198 3,623 3,785 3,299 3,113 3,566 2,802 99 To foreigners 47,083 50,517 60,014 55,433 54,848 56,829 56,639 57,527 56,626 57,522 100 Other branches of parent bank 18,561 18,384 25,957 19,509 18,480 20,878 18,319 18,678 20,800 18,498 101 Banks 13,407 12,244 9,488 9,678 9,731 8,401 12,040 10,542 11,069 13,061 102 Official institutions 4,348 5,454 4,692 7,519 7,929 9,149 7,050 9,995 7,156 7,580 103 Nonbank foreigners 10,767 14,435 19,877 18,727 18,708 18,401 19,230 18,312 17,601 18,383 104 Other liabilities 4,173 6,462 8,673 9,210 9,158 8,953 9,808 9,347 9,050 10,055 Bahamas and Caymans 105 Total, all currencies 170,639 176,006 162,316 170,044 166,333 169,898r 170,529 170,846 168,326r 167,678 106 Negotiable CDs 953 678 646 904 %3 1,055 981 1,034 1,173 1,382 107 To United States 122,332 124,859 114,738 127,083 123,117 128,150r 130,223 129,781 129,872r 130,433 108 Parent bank 62,894 75,188 74,941 81,541 77,159 82,075r 84,853 83,057 79,394r 79,783 109 Other banks in United States 11,494 8,883 4,526 7,484 7,036 8,841 7,070 9,728 10,011 9,870 110 Nonbanks 47,944 40,788 35,271 38,058 38,922 37,234 38,300 36,9% 40,467 40,780 111 To foreigners 45,161 47,382 44,444 39,624 39,994 38,616r 36,861 37,857 35,200" 33,958 112 Other branches of parent bank 23,686 23,414 24,715 21,765 21,846 20,515r 19,675 19,555 17,388r 16,442 113 Banks 8,336 8,823 5,588 4,877 5,558 5,431 5,218 5,984 5,662 5,464 114 Official institutions 1,074 1,097 622 661 655 647 666 646 572 450 115 Nonbank foreigners 12,065 14,048 13,519 12,321 11,935 12,023 11,302 11,672 11,578 11,602 116 Other liabilities 2,193 3,087 2,488 2,433 2,259 2,077r 2,464 2,174 2,081 1,905 117 Total payable in U.S. dollars 162,950 171,250 157,132 165,708 162,040 165,235r 166,226 166,157 163,603r 162,667 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 1992 IItteemm 11998899 11999900 July Aug. Sept. Oct. Nov.r Dec.r Jan." 1 Total1 312,477 344,529 350,476 356,885 350,518 358,025 366,199 364,286 374,385 By type 2 Liabilities reported by banks in the United States'1 36,496 39,880 43,417 47,374 38,402 41,526 42,701 38,161 40,487 3 U.S. Treasury bills and certificates3 76,985 79,424 86,071 88,596 90,394 94,428 92,855 92,692 92,711 U.S. Treasury bonds and notes 4 Marketable 179,269 202,487 197,104 196,815 197,645 198,157 205,351 207,805 215,549 5 Nonmarketable 568 4,491 4,704 4,734 4,765 4,796 4,827 4,858 4,892 6 U.S. securities other than U.S. Treasury securities 19,159 18,247 19,180 19,366 19,312 19,118 20,465 20,770 20,746 By area 7 Western Europe1 132,849 167,191 166,349 170,467 165,061 170,423 173,891 169,652 173,873 8 Canada 9,482 8,671 9,260 10,001 9,608 9,121 9,428 7,310 7,636 9 Latin America and Caribbean 9,313 21,184 30,064 31,377 31,911 32,604 33,991 36,038 36,774 10 Asia 153,338 138,096 134,806 134,826 133,082 134,667 137,522 139,590 145,407 11 Africa 1,030 1,434 1,183 1,202 1,558 1,519 1,383 2,092 2,409 12 Other countries6 6,469 7,955 8,812 9,010 9,296 9,689 9,982 9,602 8,284 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 m the United States and on the 1984 benchmark survey of foreign portfolio investment in the United States. 3.16 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in Foreign Currencies1 Millions of dollars, end of period 1991 IItteemm 11998888 11998899 11999900 Mar. June Sept. Dec. 1 Banks' own liabilities 777444,,,999888000 666777,,,888333555 777000,,,444777777 666444,,,999222999 555999,,,444888777 666333,,,111888999 777444,,,999111999 2 Banks' own claims 666888,,,999888333 666555,,,111222777 666666,,,777999666 666666,,,999111999 666111,,,666111999 666444,,,999888888 777333,,,000777666 222555,,,111000000 222000,,,444999111 222999,,,666777222 222777,,,555888666 222777,,,777999222 333000,,,222333000 222666,,,222555333 444333,,,888888444 444444,,,666333666 333777,,,111222444 333999,,,333333333 333333,,,888222777 333444,,,777555888 444666,,,888222333 5 Claims of banks' domestic customers2 333666444 333,,,555000777 666,,,333000999 555,,,555666999 111,,,666444666 222,,,333444888 333,,,222777444 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 • May 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 1992 HHoollddeerr aanndd ttyyppee ooff lliiaabbiilliittyy 11998899 11999900 11999911rr July Aug. Sept. Oct. Nov. Dec/ Jan.p 1 AU foreigners 736,878 759,634 753,266 726,807 733,321 735,950 750,205 758,106r 753,266 749,802 ? Banks' own liabilities 577,498 577,229 572,660 548,063 552,670 554,557 565,347 575,544r 572,660 570,735 3 Demand deposits 22,032 21,723 20,348 17,929 18,423 19,841 17,637 21,630 20,348 19,310 4 Time deposits 168,780 168,017 159,253 148,667 146,395 149,708 154,552 154,425r 159,253 148,576 5 Other. 67,823 65,822 65,644 66,823 72,595 67,646 73,223 75,748r 65,644 73,790 6 Own foreign offices4 318,864 321,667 327,415 314,644 315,257 317,362 319,935 323,741r 327,415 329,059 7 Banks' custody liabilities5 159,380 182,405 180,606 178,744 180,651 181,393 184,858 182,562 180,606 179,067 8 U.S. Treasury bills and certificates6 91,100 96,796 110,734 101,809 105,325 107,019 112,280 110,938 110,734 109,980 9 Other negotiable and readily transferable instruments 19,526 17,578 18,656 17,351 16,508 16,820 17,076 17,225 18,656 1177,,223399 10 Other 48,754 68,031 51,216 59,584 58,818 57,554 55,502 54,399 51,216 51,848 11 Nonmonetary international and regional 4,894 5,918 8,250 6,236 6,945 6,915 7,689 8,719 88,,225500 99,,559966 12 Banks' own liabilities 3,279 4,540 6,096 4,127 4,971 5,410 5,988 6,826 6,096 7,813 13 Demand deposits 96 36 43 44 28 36 28 24 43 39 14 Time deposits 927 1,050 2,314 1,742 1,550 2,307 2,490 2,392 2,314 1,999 15 Other. 2,255 3,455 3,739 2,341 3,393 3,067 3,470 4,410 3,739 5,775 16 Banks' custody liabilities5 1,616 1,378 2,154 2,109 1,974 1,505 1,701 1,893 2,154 1,783 17 U.S. Treasury bills and certificates 197 364 1,730 1,404 1,269 1,032 1,246 1,530 1,730 1,328 18 Other negotiable and readily transferable instruments 1,417 1,014 424 705 705 473 455 363 442244 445555 19 Other 2 0 0 0 0 0 0 0 0 0 20 Official institutions9 113,481 119,303 130,853 129,488 135,970 128,796 135,954 135,556 130,853 133,198 21 Banks' own liabilities 31,108 34,910 34,176 38,886 43,156 33,854 37,559 38,860 34,176 36,975 7,2 Demand deposits 2,196 1,924 2,642 1,396 1,683 1,645 1,307 1,621 2,642 1,480 23 Time deposits 10,495 14,359 16,274 14,970 14,747 13,237 14,544 13,145 16,274 16,228 24 Other 18,417 18,628 15,260 22,520 26,726 18,972 21,708 24,094 15,260 19,267 75 Banks' custody liabilities5 82,373 84,393 96,677 90,602 92,814 94,942 98,395 96,696 96,677 96,223 26 U.S. Treasury bills and certificates6 76,985 79,424 92,692 86,071 88,596 90,394 94,428 92,855 92,692 92,711 27 Other negotiable and readily transferable instruments 5,028 4,766 3,879 4,324 4,047 4,128 3,832 3,627 33,,887799 33,,442244 28 Other 361 203 106 207 171 420 135 214 106 88 29 Banks10 515,275 540,805 520,134 498,681 500,544 509,557 515,933 521,617r 520,134 514,796 30 Banks' own liabilities 454,273 458,470 457,449 427,648 429,732 439,924 447,667 455,885r 457,449 450,775 31 Unaffiliated foreign banks 135,409 136,802 130,034 113,004 114,475 122,562 127,732 132,144r 130,034 121,716 32 Demand deposits 10,279 10,053 8,626 8,423 8,252 8,959 8,164 11,396 8,626 8,807 33 Time deposits2 90,557 88,541 83,006 70,185 70,608 74,861 78,038 80,293r 83,006 73,710 34 Other. 34,573 38,208 38,402 34,396 35,615 38,742 41,530 40,455r 38,402 39,199 35 Own foreign offices 318,864 321,667 327,415 314,644 315,257 317,362 319,935 323,74lr 327,415 329,059 36 Banks' custody liabilities5 61,002 82,335 62,685 71,033 70,812 69,633 68,266 65,732 62,685 64,021 37 U.S. Treasury bills and certificates6 9,367 10,669 7,471 7,970 8,242 8,161 8,363 7,855 7,471 7,693 38 Other negotiable and readily transferable instruments7 5,124 5,341 5,808 5,472 5,316 5,819 6,083 5,948 5,808 5,927 39 Other 46,510 66,325 49,406 57,591 57,254 55,653 53,820 51,929 49,406 50,401 40 103,228 93,608 94,029 92,402 89,862 90,682 90,629 92,214 94,029 92,212 41 Banks' own liabilities 88,839 79,309 74,939 77,402 74,811 75,369 74,133 73,973 74,939 75,172 47 Demand deposits 9,460 9,711 9,037 8,066 8,460 9,201 8,138 8,589 9,037 8,984 43 66,801 64,067 57,659 61,770 59,490 59,303 59,480 58,595 57,659 56,639 44 Other. 12,577 5,530 8,243 7,566 6,861 6,865 6,515 6,789 8,243 9,549 45 Banks' custody liabilities5 14,389 14,299 19,090 15,000 15,051 15,313 16,496 18,241 19,090 17,040 46 U.S. Treasury bills and certificates 4,551 6,339 8,841 6,364 7,218 7,432 8,243 8,698 8,841 8,248 47 Other negotiable and readily transferable instruments 7,958 6,457 8,545 6,850 6,440 6,400 6,706 7,287 8,545 7,433 48 Other 1,880 1,503 1,704 1,786 1,393 1,481 1,547 2,256 1,704 1,359 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 7,203 7,073 7,456 7,073 7,062 7,542 7,596 7,137 7,456 7,835 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 1992 AArreeaa aanndd ccoouunnttrryy 11998899 11999900 11999911rr July Aug. Sept. Oct. Nov. Dec/ Jan.P 1 736,878 759,634 753,266 726,807 733,321 735,950 750,205 758,106r 753,266 749,802 2 Foreign countries 731,984 753,716 745,016 720,571 726,376 729,035 742,516 749,387r 745,016 740,206 3 237,501 254,452 248,896 228,782 235,018 237,000 246,806 251,343r 248,8% 244,604 4 1,233 1,229 1,203 1,234 961 1,109 1,232 1,313 1,203 1,028 5 Belgium-Luxembourg 10,648 12,382 13,347 12,292 11,168 13,912 13,495 14,600" 13,347 13,385 6 Denmark 1,415 1,399 937 1,197 1,065 1,038 912 1,143 937 991 7 570 602 1,341 1,222 1,170 618 938 1,080 1,341 893 8 France 26,903 30,946 31,808 26,747 26,580 27,476 30,500 31,095r 31,808 29,044 9 Germany 7,578 7,485 8,638 7,056 7,037 7,500 7,891 8,032 8,638 7,774 10 1,028 934 763 817 851 944 840 890 763 873 11 Italy 16,169 17,735 13,544 13,883 12,507 12,507 12,274 13,288 13,544 10,798 1? Netherlands 6,613 5,350 7,154 6,069 5,651 6,310 6,546 6,124 7,154 7,8% 13 2,401 2,357 1,866 1,653 1,279 1,444 1,192 l,452r 1,866 1,984 14 Portugal 2,418 2,958 2,184 2,279 2,313 2,391 2,431 2,223 2,184 1,114 15 4,364 7,544 11,391 10,496 10,396 10,834 12,280 11,148 11,391 9,371 16 Sweden 1,491 1,837 2,222 858 1,424 1,435 1,217 1,105 2,222 1,908 17 Switzerland 34,496 36,690 37,286 34,808 35,967 38,341 36,733 36,711 37,286 36,036 18 1,818 1,169 1,598 1,720 1,780 1,538 1,493 1,845 1,598 1,490 19 United Kingdom 102,362 109,555 100,106 90,059 95,359 95,628 99,472 99,835r 100,106 102,329 70 Yugoslavia 1,474 928 622 1,016 955 854 807 544 622 493 71 Other Western Europe11 13,563 11,689 9,176 12,423 15,176 9,640 12,964 15,257 9,176 13,593 7? U.S.S.R 350 119 241 75 136 117 178 236 241 209 23 Other Eastern Europe 608 1,545 3,469 2,878 3,243 3,364 3,411 3,422 3,469 3,395 24 Canada 18,865 20,349 21,563 22,519 23,919 24,038 24,685 23,131 21,563 19,426 75 Latin America and Caribbean 311,028 332,997 343,702 339,202 337,729 340,519 340,561 345,127r 343,702 347,030 76 Argentina 7,304 7,365 7,758 7,097 6,978 6,858 7,190 7,452 7,758 7,900 77 99,341 107,386 99,713 98,011 93,977 96,577 99,858 100,339 99,713 100,365 ?8 Bermuda 2,884 2,822 3,178 3,087 3,520 3,120 3,191 3,295 3,178 3,664 79 Brazil 6,351 5,834 5,942 5,837 6,074 6,068 5,998 5,811 5,942 5,902 30 British West Indies 138,309 147,321 162,436 161,253 162,590 163,040 160,555 163,423r 162,436 163,697 31 Chile 3,212 3,145 3,284 3,305 3,162 3,092 3,348 3,388 3,284 3,322 3? Colombia 4,653 4,492 4,662 4,419 4,735 4,641 4,823 4,797 4,662 4,627 33 Cuba 10 11 2 2 9 8 4 12 2 6 34 Ecuador 1,391 1,379 1,232 1,267 1,236 1,226 1,237 1,236 1,232 1,250 35 Guatemala 1,312 1,541 1,594 1,641 1,613 1,585 1,541 1,589 1,594 1,554 36 209 257 231 219 235 213 202 201 231 234 37 15,423 16,650 19,956 20,008 20,357 20,937 19,979 20,515 19,956 20,398 38 Netherlands Antilles 6,310 7,357 5,593 5,828 5,732 5,565 5,499 5,924 5,593 6,272 39 Panama 4,362 4,574 4,695 4,435 4,748 4,374 4,450 4,563 4,695 4,167 40 1,984 1,294 1,249 1,333 1,287 1,305 1,234 1,240 1,249 1,233 41 Uruguay 2,284 2,520 2,111 2,450 2,439 2,507 2,442 2,373 2,111 2,313 47 Venezuela 9,482 12,271 13,153 12,170 12,249 12,348 12,237 12,171 13,153 13,540 43 Other 6,206 6,779 6,913 6,840 6,788 7,055 6,773 6,798 6,913 6,586 44 156,201 136,844 120,478 122,194 121,689 118,830 120,443 120,039 120,478 119,266 China 45 Mainland 1,773 2,421 2,619 2,408 2,247 2,198 2,494 2,783 2,619 22,,775577 46 19,588 11,246 11,494 11,220 11,579 9,425 12,443 11,675 11,494 10,654 4477 Hong Kong 12,416 12,754 14,373 14,719 14,206 14,468 13,943 13,812 14,373 15,448 4488 780 1,233 2,418 2,122 2,373 2,474 2,504 2,613 2,418 2,297 49 1,281 1,238 1,464 1,191 1,232 1,065 1,230 1,414 1,464 1,043 50 1,243 2,767 2,015 2,376 2,697 2,848 2,115 2,108 2,015 2,192 51 81,184 67,076 47,112 50,144 48,875 48,089 47,068 46,004 47,112 46,238 5? 3,215 2,287 2,538 2,444 2,272 2,107 2,169 2,555 2,538 2,407 53 Philippines 1,766 1,585 2,449 1,537 1,465 1,647 1,926 2,139 2,449 2,256 54 2,093 1,443 2,252 2,368 2,650 3,348 3,113 3,581 2,252 2,936 55 Middle-East oil-exporting countries'3 13,370 15,829 15,745 15,750 14,835 15,310 15,534 16,302 15,745 15,888 56 Other 17,491 16,965 15,999 15,915 17,258 15,851 15,904 15,053 15,999 15,150 57 3,824 4,630 5,150 3,929 4,017 4,483 4,558 4,465 5,150 5,039 58 Egypt 686 1,425 1,619 999 957 1,125 1,241 1,060 1,619 1,618 59 Morocco 78 104 79 81 91 82 78 93 79 85 60 South Africa 206 228 228 221 137 242 207 173 228 201 61 86 53 31 24 58 37 42 32 31 28 67 Oil-exporting countries14 1,121 1,110 1,082 960 992 1,145 1,182 1,280 1,082 1,204 63 Other 1,648 1,710 2,111 1,644 1,782 1,852 1,808 1,827 2,111 1,903 64 4,564 4,444 5,227 3,945 4,004 4,165 5,463 5,282 5,227 4,841 65 Australia 3,867 3,807 4,464 3,173 3,149 3,231 4,445 4,116 4,464 3,619 66 All other 697 637 763 772 855 934 1,018 1,166 763 1,222 67 Nonmonetary international and regional 4,894 5,918 8,250 6,236 6,945 66,,991155 77,,668899 88,,771199 88,,225500 99,,55%% 68 International15 3,947 4,390 5,754 4,356 4,371 4,877 5,435 6,178 5,754 7,140 69 Latin American regional 684 1,048 1,181 1,273 1,531 1,094 1,242 1,366 1,181 1,422 70 Other regional16 263 479 1,315 607 1,043 944 1,012 1,175 1,315 1,034 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 • May 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 1992 AArreeaa aanndd ccoouunnttrryy 11998899 11999900 11999911rr July Aug. Sept. Oct. Nov. Dec.r Jan.P 1 Total 534,492 511,543 513,426 497,814 502,559 498,985 511,091 514,539r 513,426 506,937 2 Foreign countries 530,630 506,750 507,662 495,415 500,079 496,416 509,310 511,249r 507,662 502,742 3 Europe 119,025 113,093 114,259 97,767 98,575 103,395 103,756 107,744r 114,259 112,464 4 Austria 415 362 327 269 185 297 374 325 327 211 5 Belgium-Luxembourg 6,478 5,473 6,157 5,924 6,534 7,175 7,677 6,%2 6,157 6,698 6 Denmark 582 497 686 898 945 670 609 656 686 777 7 Finland 1,027 1,047 1,912 642 771 908 1,195 1,378 1,912 1,854 8 France 16,146 14,468 15,113 14,300 13,827 14,504 13,080 14,813 15,113 15,196 9 Germany 2,865 3,343 3,339 2,682 3,106 2,672 2,107 2,839r 3,339 3,293 10 Greece 788 727 553 619 495 473 487 555 553 550 11 Italy 6,662 6,052 8,242 5,911 5,931 6,541 6,370 6,362 8,242 7,989 12 Netherlands 1,904 1,761 2,538 2,234 2,101 1,955 2,139 2,220r 2,538 2,662 13 Norway 609 782 669 661 599 679 682 776 669 801 14 Portugal 376 292 344 260 308 266 301 358 344 360 15 Spain 1,930 2,668 1,844 2,582 1,995 2,333 2,410 2,480 1,844 2,486 16 Sweden 1,773 2,094 2,315 1,858 1,633 1,8% 1,842 2,347 2,315 2,751 17 Switzerland 6,141 4,202 4,540 3,627 3,609 4,048 4,195 4,469 4,540 4,485 18 Turkey 1,071 1,405 1,058 1,458 1,407 1,382 1,192 1,147 1,058 1,060 19 United Kingdom 65,527 65,151 60,442 50,775 51,625 54,305 55,490 55,91lr 60,442 56,452 20 Yugoslavia 1,329 1,142 824 877 820 802 803 848 824 822 21 Other Western Europe2 1,302 597 789 832 1,024 773 714 1,001 789 1,152 22 U.S.S.R 1,179 530 1,970 772 1,015 1,157 1,358 1,689r 1,970 2,331 23 Other Eastern Europe 921 499 597 586 645 559 731 608 597 534 24 Canada 15,451 16,091 14,937 16,719 14,495 14,734 16,076 14,937 14,440 25 Latin America and Caribbean 230,438 231,506 246,011 246,051 249,305 250,313 255,080 252,789r 246,011 249,055 26 Argentina 9,270 6,967 5,875 5,944 5,749 5,749 5,735 5,778 5,875 5,855 27 Bahamas 77,921 76,525 87,116 81,294 78,414 80,217 85,940 87,145 87,116 89,174 28 Bermuda 1,315 4,056 2,188 5,804 11,773 6,847 4,298 4,095 2,188 3,528 29 Brazil 23,749 17,995 11,844 12,350 12,332 11,880 11,499 11,687r 11,844 12,470 30 British West Indies 68,749 88,565 107,844 110,628 111,119 112,589 116,401 111,976r 107,844 106,408 31 Chile 4,353 3,271 2,804 2,832 2,779 2,732 2,721 2,833r 2,804 2,794 32 Colombia 2,784 2,587 2,424 2,202 2,368 2,431 2,541 2,573r 2,424 2,373 33 Cuba 1 0 0 0 0 0 0 0 0 0 34 Ecuador 1,688 1,387 1,053 1,263 1,238 1,115 1,095 1,090 1,053 1,044 35 Guatemala 197 191 228 190 182 185 191 195r 228 214 36 Jamaica 297 238 158 144 150 150 162 161 158 157 37 Mexico 23,376 14,851 16,658 15,447 15,279 16,427 16,871 17,400 16,658 17,115 38 Netherlands Antilles 1,921 7,998 1,126 1,563 1,540 3,606 1,247 1,122 1,126 1,112 39 Panama 1,740 1,471 1,562 1,501 1,490 1,489 1,558 l,640r 1,562 1,660 40 Peru 771 663 739 712 728 712 722 724 739 735 41 Uruguay 929 786 599 577 571 577 555 550 599 548 42 Venezuela 9,652 2,571 2,527 2,405 2,394 2,443 2,406 2,634 2,527 2,609 43 Other 1,726 1,384 1,266 1,195 1,199 1,164 1,138 l,186r 1,266 1,259 44 Asia 157,474 138,722 125,244 127,560 113300,,222200 112200,,335533 112277,,001199 112277,,2211 llrr 112255,,224444 111199,,445522 China 45 Mainland 634 620 747 659 575 621 597 698 747 813 46 Taiwan 2,776 1,952 2,088 1,696 1,522 1,460 1,577 1,583 2,088 1,918 47 Hong Kong 11,128 10,648 9,698 9,051 9,154 9,467 10,203 10,171 9,698 9,821 48 India 621 655 440 409 425 449 481 449 440 444 49 Indonesia 651 933 952 874 858 852 841 872 952 1,012 50 Israel 813 774 855 818 919 945 994 907 855 1,071 51 Japan 111,300 90,699 84,806 88,183 90,604 80,498 84,839 85,556r 84,806 80,232 52 Korea 5,323 5,766 6,023 5,597 5,383 5,140 5,340 5,773 6,023 5,641 53 Philippines 1,344 1,247 1,910 1,647 1,682 1,633 1,916 1,971 1,910 1,849 54 Thailand 1,140 1,573 1,645 1,975 1,870 1,934 1,826 1,798 1,645 1,529 55 Middle East oil-exporting countries 10,149 10,749 8,284 9,771 9,741 10,439 9,973 9,957 8,284 8,330 56 Other 11,594 13,106 7,796 6,880 7,487 6,915 8,432 7,476 7,7% 6,792 57 Africa 5,890 5,445 4,920 5,417 5,344 5,272 5,264 5,234 4,920 4,866 58 Egypt 502 380 286 324 315 312 294 343 286 247 59 Morocco 559 513 575 597 576 579 589 583 575 591 60 South Africa 1,628 1,525 1,231 1,627 1,610 1,498 1,494 1,493 1,231 1,217 61 Zaire 16 16 4 9 9 8 9 7 4 4 62 Oil-exporting countries 1,648 1,486 1,298 1,285 1,273 1,270 1,260 1,320 1,298 1,116 63 Other 1,537 1,525 1,526 1,575 1,561 1,605 1,618 1,488 1,526 1,691 64 Other countries 2,354 1,892 2,291 1,901 2,140 2,349 2,115 2,481 2,291 2,465 65 Australia 1,781 1,413 1,665 1,384 1,464 1,526 1,503 1,718 1,665 1,468 66 All other 573 479 626 517 676 823 612 763 626 997 67 Nonmonetary international and regional organizations6 3,862 4,793 5,764 2,399 2,480 2,569 1,781 3,290 5,764 4,195 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 1992 TTyyppee ooff ccllaaiimm 11998899 11999900 11999911rr July Aug. Sept. Oct. Nov/ Dec.r Jan." 555555599999993333333,,,,,,,000000088888887777777 555555577777779999999,,,,,,,000000044444444444444 555555577777779999999,,,,,,,555555522222223333333 555555566666666666666,,,,,,,333333322222224444444 555555577777779999999,,,,,,,555555522222223333333 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 555555533333334444444,,,,,,,444444499999992222222 555555511111111111111,,,,,,,555555544444443333333 555555511111113333333,,,,,,,444444422222226666666 497,814 502,559 444444499999998888888,,,,,,,999999988888885555555 511,091 514,539 555555511111113333333,,,,,,,444444422222226666666 506,937 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 66666660000000,,,,,,,555555511111111111111 44444441111111,,,,,,,999999900000000000000 33333336666666,,,,,,,000000000000003333333 35,174 35,423 33333335555555,,,,,,,000000077777776666666 34,878 35,987 33333336666666,,,,,,,000000000000003333333 34,432 44 OOwwnn ffoorreeiiggnn ooffffiicceess22 222222299999996666666,,,,,,,000000011111111111111 333333300000004444444,,,,,,,333333311111115555555 333333311111118888888,,,,,,,888888800000000000000 305,470 301,649 333333300000003333333,,,,,,,999999944444448888888 313,052 313,758 333333311111118888888,,,,,,,888888800000000000000 306,802 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111133333334444444,,,,,,,888888888888885555555 111111111111117777777,,,,,,,222222277777772222222 111111111111116666666,,,,,,,555555511111119999999 115,041 116,553 111111111111113333333,,,,,,,888888855555553333333 119,847 120,166 111111111111116666666,,,,,,,555555511111119999999 121,189 66 DDeeppoossiittss 77777778888888,,,,,,,111111188888885555555 66666665555555,,,,,,,222222255555553333333 66666669999999,,,,,,,222222211111114444444 69,302 70,730 66666668888888,,,,,,,333333366666669999999 72,493 71,578 66666669999999,,,,,,,222222211111114444444 71,125 77 OOtthheerr 55555556666666,,,,,,,777777700000000000000 55555552222222,,,,,,,000000011111119999999 44444447777777,,,,,,,333333300000005555555 45,739 45,823 44444445555555,,,,,,,444444488888884444444 47,354 48,588 44444447777777,,,,,,,333333300000005555555 50,064 88 AAllll ootthheerr ffoorreeiiggnneerrss 44444443333333,,,,,,,000000088888885555555 44444448888888,,,,,,,000000055555556666666 44444442222222,,,,,,,111111100000004444444 42,129 48,934 44444446666666,,,,,,,111111100000008888888 43,314 44,628 44444442222222,,,,,,,111111100000004444444 44,514 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss33...... 55555558888888,,,,,,,555555599999994444444 66666667777777,,,,,,,555555500000001111111 66666666666666,,,,,,,000000099999997777777 66666667777777,,,,,,,333333333333339999999 66666666666666,,,,,,,000000099999997777777 11111113333333,,,,,,,000000011111119999999 11111114444444,,,,,,,333333377777775555555 11111115555555,,,,,,,222222244444440000000 11111119999999,,,,,,,555555511111112222222 11111115555555,,,,,,,222222244444440000000 11 Negotiable and readily transferable 33333330000000,,,,,,,999999988888883333333 44444441111111,,,,,,,333333333333333333333 33333337777777,,,,,,,999999911111118888888 33333335555555,,,,,,,000000055555554444444 33333337777777,,,,,,,999999911111118888888 12 Outstanding collections and other 11111114444444,,,,,,,555555599999992222222 11111111111111,,,,,,,777777799999992222222 11111112222222,,,,,,,999999933333339999999 11111112222222,,,,,,,777777777777773333333 11111112222222,,,,,,,999999933333339999999 13 MEMO: Customer liability on 11111112222222,,,,,,,888888899999999999999 11111113333333,,,,,,,666666622222228888888 6666666,,,,,,,555555566666662222222 8888888,,,,,,,666666666666665555555 6666666,,,,,,,555555566666662222222 1144 DDoollllaarr ddeeppoossiittss iinn bbaannkkss aabbrrooaadd,, rreeppoorrtteedd bbyy nnoonnbbaannkkiinngg bbuussiinneessss eenntteerrpprriisseess iinn tthhee UUnniitteedd SSttaatteess 45,744 44,554 39,430 40,425 41,717 37,856 39,795r 40,546 39,430 n.a. 1. Data for banks' own claims are given on a monthly basis, but the data for subsidiaries of head office or parent foreign bank. claims of banks' own domestic customers are available on a quarterly basis only. 3. Assets owned by customers of the reporting bank located in the United Reporting banks include all kinds of depository institutions besides commercial States that represent claims on foreigners held by reporting banks for the account banks, as well as some brokers and dealers. of their domestic customers. 2. For U.S. banks, includes amounts due from own foreign branches and 4. Principally negotiable time certificates of deposit and bankers acceptances. foreign subsidiaries consolidated in "Consolidated Report of Condition" filed 5. Includes demand and time deposits and negotiable and nonnegotiable with bank regulatory agencies. For agencies, branches, and majority-owned certificates of deposit denominated in U.S. dollars issued by banks abroad. For subsidiaries of foreign banks, consists principally of amounts due from head office description of changes in data reported by nonbanks, see July 1979 Bulletin, or parent foreign bank, and foreign branches, agencies, or wholly owned p. 550. 3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States1 Payable in U.S. Dollars Millions of dollars, end of period Maturity, by borrower and area 1988 1990 Mar. Sept. 1 Total 233,184 238,123 206,903 199,254 199,085 194,820 By borrower 2 Maturity of one year or less 172,634 178,346 165,985 158,220 159,465 159,385 3 Foreign public borrowers 26,562 23,916 19,305 21,216 18,596 17,088 4 All other foreigners 146,071 154,430 146,680 137,004 140,869 142,297 5 Maturity of more than one year2 60,550 59,776 40,918 41,034 39,620 35,435 6 Foreign public borrowers 35,291 36,014 22,269 22,498 20,624 17,791 7 All other foreigners 25,259 23,762 18,649 18,536 18,9% 17,644 By area Maturity of one year or less 8 Europe 55,909 53,913 49,184 49,641 49,917 51,104 9 Canada 6,282 5,910 5,450 5,938 7,290 5,671 10 Latin America and Caribbean 57,991 53,003 49,782 42,660 41,121 47,260 11 Asia 46,224 57,755 53,258 54,042 53,177 49,291 12 Africa .., 3,337 3,225 3,040 3,008 2,945 2,815 13 All other3 2,891 4,541 5,272 2,931 5,016 3,244 Maturity of more than one year2 14 Europe 4,666 4,121 3,859 4,329 4,285 3,819 15 Canada 1,922 2,353 3,290 3,387 3,820 3,673 16 Latin America and Caribbean 47,547 45,816 25,774 24,961 23,219 19,241 17 Asia 3,613 4,172 5,165 5,414 5,645 6,095 18 Africa 2,301 2,630 2,374 2,426 2,456 2,385 19 All other3 501 684 456 517 195 222 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 • May 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 Area or country iyo/ iyss Dec. Mar. June Sept. Dec. Mar. June Sept. Dec.p 1 Total 382.4 346.3 338.8 333.9 321.7 331.5 317.8 325.3 320.2 336.1r 341.2 2 G-10 countries and Switzerland 159.7 152.7 152.9 146.6 139.3 143.6 132.1 129.9 130.1 134.7 137.5 3 Belgium-Luxembourg 10.0 9.0 6.3 6.7 6.2 6.5 5.9 6.2 6.1 5.8 6.0 4 France 13.7 10.5 11.7 10.4 10.2 11.1 10.4 9.7 10.5 11.1 11.3 5 Germany 12.6 10.3 10.5 11.2 11.2 11.1 10.6 8.8 8.3 9.7 8.2 6 Italy 7.5 6.8 7.4 5.9 5.4 4.4 5.0 4.0 3.6 4.5 5.6 7 Netherlands 4.1 2.7 3.1 3.1 2.7 3.8 3.0 3.3 3.3 3.0 4.7 8 Sweden 2.1 1.8 2.0 2.1 2.3 2.3 2.2 2.0 2.5 2.1 1.9 9 Switzerland 5.6 5.4 7.1 6.2 6.3 5.6 4.4 3.7 3.3 3.9 3.4 10 United Kingdom 68.8 66.2 67.2 64.0 59.9 62.6 60.8 62.3 59.8 65.6 68.5 11 Canada 5.5 5.0 5.4 4.8 5.1 5.0 5.9 6.8 8.2 5.8 5.8 12 Japan 29.8 34.9 32.2 32.2 30.1 31.3 23.9 23.2 24.6 23.2 22.2 13 Other developed countries 26.4 21.0 20.7 23.0 22.4 23.0 22.6 23.1 21.1 21.7 22.6 14 Austria 1.9 1.5 1.5 1.5 1.5 1.6 1.4 1.4 1.1 1.0 .6 15 Denmark 1.7 1.1 1.1 1.2 1.1 1.1 1.1 .9 1.2 .9 .9 16 Finland 1.2 1.1 1.0 1.1 .9 .8 .7 1.0 .8 .7 .7 17 Greece 2.0 1.8 2.5 2.6 2.7 2.8 2.7 2.5 2.4 2.3 2.6 18 Norway 2.2 1.8 1.4 1.7 1.4 1.6 1.6 1.5 1.5 1.4 1.4 19 Portugal .6 .4 .4 .4 .8 .6 .6 .6 .6 .5 .6 20 Spain 8.0 6.2 7.1 8.2 7.8 8.4 8.3 9.0 7.0 8.3 8.2 21 Turkey 2.0 1.5 1.2 1.3 1.4 1.6 1.7 1.7 1.9 1.6 1.4 22 Other Western Europe 1.6 1.3 .7 1.0 1.1 .7 .9 .8 .9 1.0 1.6 23 South Africa 2.9 2.4 2.0 2.0 1.9 1.9 1.8 1.8 1.8 1.6 1.9 24 Australia 2.4 1.8 1.6 2.1 1.8 2.0 1.8 1.9 2.0 2.4 2.7 25 OPEC countries2 17.4 16.6 17.1 15.5 15.3 14.2 12.8 17.1 14.0 15.6 14.6 26 Ecuador 1.9 1.7 1.3 1.2 1.1 1.1 1.0 .9 .9 .8 .7 27 Venezuela 8.1 7.9 7.0 6.1 6.0 6.0 5.0 5.1 5.3 5.6 5.4 28 Indonesia 1.9 1.7 2.0 2.1 2.0 2.3 2.7 2.8 2.6 2.8 2.8 29 Middle East countries 3.6 3.4 5.0 4.3 4.4 3.1 2.5 6.6 3.7 5.0 4.2 30 African countries 1.9 1.9 1.7 1.8 1.8 1.7 1.7 1.6 1.5 1.5 1.5 31 Non-OPEC developing countries 97.8 85.3 77.5 68.8 66.7 67.1 65.4 66.3 64.9 65.2 64.3 Latin America 32 Argentina 9.5 9.0 6.3 5.6 5.2 5.0 5.0 4.7 4.6 4.7 4.8 33 Brazil 24.7 22.4 19.0 17.5 16.7 15.4 14.4 13.9 11.6 10.5 9.5 34 Chile 6.9 5.6 4.6 4.3 3.7 3.6 3.5 3.6 3.6 3.7 3.6 35 Colombia 2.0 2.1 1.8 1.8 1.7 1.8 1.8 1.7 1.6 1.6 1.7 36 Mexico 23.5 18.8 17.7 12.8 12.6 12.8 13.0 13.7 14.3 16.1 15.5 37 Peru 1.1 .8 .6 .5 .5 .5 .5 .5 .5 .4 .4 38 Other Latin America 2.8 2.6 2.8 2.8 2.3 2.4 2.3 2.2 2.0 1.9 2.1 Asia China 39 Mainland .3 .3 .3 .3 .2 .2 .2 .4 .6 .4 .3 40 Taiwan 8.2 3.7 4.5 3.8 3.6 4.0 3.5 3.6 4.1 4.1 4.1 41 India 1.9 2.1 3.1 3.5 3.6 3.6 3.3 3.5 3.0 2.8 3.0 42 Israel 1.0 1.2 .7 .6 .7 .6 .5 .5 .5 .5 .5 43 Korea (South) 5.0 6.1 5.9 5.3 5.6 6.2 6.2 6.8 6.9 6.5 6.8 44 Malaysia 1.5 1.6 1.7 1.8 1.8 1.8 1.9 2.0 2.1 2.3 2.3 45 Philippines 5.2 4.5 4.1 3.7 3.9 3.9 3.8 3.7 3.7 3.6 3.7 46 Thailand .7 1.1 1.3 1.1 1.3 1.5 1.5 1.6 1.7 1.9 1.7 47 Other Asia3 .7 .9 1.0 1.2 1.1 1.6 1.7 2.1 2.3 2.3 2.4 Africa 48 Egypt .6 .4 .4 .4 .5 .4 .4 .4 .4 .4 .4 49 Morocco .9 .9 .9 .9 .9 .9 .8 .8 .7 .7 .7 50 Zaire , .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 51 Other Africa3 1.3 1.1 1.0 .9 .8 .8 1.0 .8 .8 .8 .7 52 Eastern Europe 3.2 3.6 3.5 3.3 2.9 2.7 2.3 2.1 2.1 1.8 2.4 53 U.S.S.R .3 .7 .7 .8 .4 .4 .2 .3 .4 .4 .9 54 Yugoslavia 1.8 1.8 1.6 1.4 1.4 1.3 1.2 1.0 1.0 .8 .9 55 Other 1.1 1.1 1.3 1.2 1.1 1.1 .9 .8 .7 .7 .7 56 Offshore banking centers 54.5 44.2 36.6 43.1 40.3 42.6 42.5 49.9 48.2 52.2r 52.0 57 Bahamas 17.3 11.0 5.5 9.2 8.5 8.9 2.8 8.1 6.5 6.4r 12.0 58 Bermuda .6 .9 1.7 1.2 2.5 4.5 4.4 4.4 4.2 7.1 2.2 59 Cayman Islands and other British West Indies 13.5 12.9 9.0 10.9 8.5 9.3 11.5 14.2 15.1 14.0 15.9 60 Netherlands Antilles 1.2 1.0 2.3 2.6 2.3 2.2 7.9 1.1 1.4 3.5 1.2 6 6 1 2 L Pa e n b a a m no a n 3.7j 2.5 1 1.4 1 1.3 J 1.4 1.5| 1 . . 4 1 1.4 1.3 1.3 1.3 63 Hong Kong 1L2 9^6 9.1 9^8 10^0 8 '.1 7.7 1L6 12 A 12J 12l2 64 Singapore 7.0 6.1 7.0 8.0 7.0 7.5 6.6 8.9 7.2 7.7 7.1 65 Others5 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 66 Miscellaneous and unallocated6 23.2 22.6 30.3 33.3 34.5 38.1 39.8 36.5 39.6 44.6 47.7 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 June Sept. Dec. Mar. June Sept. 1 28,302 32,952 38,776 39,831 45,165 42,928 40,753 39,311 40,128 7 Payable in dollars 22,785 27,335 33,985 35,351 40,034 38,529 36,635 35,291 36,096 3 Payable in foreign currencies 5,517 5,617 4,791 4,480 5,131 4,399 4,119 4,019 4,032 By type 4 Financial liabilities 12,424 14,507 17,891 19,025 19,898 17,979 17,104 16,767 17,651 5 Payable in dollars 8,643 10,608 14,047 15,663 16,059 14,731 14,182 13,872 14,709 6 Payable in foreign currencies 3,781 3,900 3,844 3,363 3,839 3,247 2,922 2,895 2,942 7 Commercial liabilities 15,878 18,445 20,885 20,806 25,267 24,949 23,650 22,544 22,477 8 Trade payables 7,305 6,505 8,070 7,256 10,960 10,494 8,865 8,697 9,038 9 Advance receipts and other liabilities 8,573 11,940 12,815 13,550 14,306 14,456 14,784 13,846 13,439 10 Payable in dollars 14,142 16,727 19,938 19,688 23,974 23,798 22,453 21,420 21,387 11 Payable in foreign currencies 1,737 1,717 947 1,117 1,292 1,152 1,197 1,124 1,090 By area or country Financial liabilities 1? Europe 8,320 9,962 11,672 11,802 11,251 9,813 9,187 99,,224444 99,,880099 13 Belgium-Luxembourg 213 289 340 332 350 344 285 297 347 14 382 359 258 165 463 695 627 535 416 15 Germany 551 699 464 547 606 622 561 664 654 16 Netherlands 866 880 941 928 942 990 945 917 943 17 Switzerland 558 1,033 541 552 628 576 577 535 510 18 United Kingdom 5,557 6,533 8,830 8,832 7,632 5,976 5,551 5,706 6,371 19 Canada 360 388 610 306 309 223 272 287 305 ?0 Latin America and Caribbean 1,189 839 1,357 2,774 3,560 3,400 3,636 3,308 3,472 71 Bahamas 318 184 157 312 395 371 392 375 314 7.7 Bermuda 0 0 17 0 0 0 0 12 0 73 Brazil 25 0 0 0 0 0 0 0 11 74 British West Indies 778 645 724 1,920 2,548 2,407 2,674 2,319 22,,555555 75 Mexico 13 1 6 4 4 5 6 6 6 26 Venezuela 0 0 0 0 0 4 4 4 4 77 2,451 3,312 4,151 4,085 4,296 4,132 4,005 3,918 4,061 28 Japan 2,042 2,563 3,299 2,883 3,161 2,930 2,932 2,865 3,033 29 Middle East oil-exporting countries 8 3 2 5 4 5 1 4 19 30 Africa 4 2 2 3 2 2 2 9 3 31 Oil-exporting countries3 1 0 0 1 0 0 0 7 2 32 Mother4 100 4 100 55 479 409 2 2 1 Commercial liabilities 33 Europe 5,516 7,319 9,071 8,652 10,039 10,310 9,877 88,,884488 88,,997755 34 Belgium-Luxembourg 132 158 175 291 245 275 263 254 229 35 426 455 877 1,049 1,270 1,218 1,216 1,246 999 36 Germany 909 1,699 1,392 990 1,051 1,270 1,389 1,044 913 37 Netherlands 423 587 710 606 699 844 731 750 750 38 Switzerland 559 417 693 665 746 775 661 586 490 39 United Kingdom 1,599 2,079 2,620 2,450 2,839 2,792 2,852 2,336 3,070 40 Canada 1,301 1,217 1,124 1,179 1,263 1,251 1,231 1,186 1,018 41 Latin America and Caribbean 864 1,090 1,224 1,321 1,690 1,671 1,621 1,631 1,512 47 18 49 41 22 18 12 14 6 14 43 168 286 308 412 371 538 495 505 450 44 Brazil 46 95 100 109 129 145 218 180 209 45 British West Indies 19 34 27 29 42 30 36 50 46 46 189 217 323 315 592 475 346 364 290 47 Venezuela 162 114 164 129 165 130 126 121 101 48 6,565 6,915 7,550 7,365 9,533 9,471 8,669 8,847 8,869 49 2,578 3,094 2,914 3,197 3,356 3,639 3,413 3,383 3,317 50 Middle East oil-exporting countries ' 1,964 1,385 1,632 1,285 2,728 2,016 1,569 1,699 1,808 51 574 576 886 900 1,334 841 655 594 835 52 Oil-exporting countries 135 202 339 287 610 422 225 224 356 53 All other4 1,057 1,328 1,030 1,390 1,408 1,406 1,596 1,436 1,268 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 • May 1992 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1990 1991 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998877 11998888 11998899 June Sept. Dec. Mar. June Sept. 1 Total 30,964 33,805 33,080 33,098 32,239 34,780 35,272 36,946 38,424r 2 Payable in dollars 28,502 31,425 30,742 30,765 29,836 32,354 33,068 34,948 36,135r 3 Payable in foreign currencies 2,462 2,381 2,338 2,333 2,402 2,426 2,204 1,997 2,289" By type 4 Financial claims 20,363 21,640 19,235 19,438 17,758 19,444 19,392 20,687 22,558r 5 Deposits 14,894 15,643 12,336 11,615 11,810 13,331 12,835 12,300 15,915r 6 Payable in dollars 13,765 14,544 11,409 10,533 10,616 12,318 11,893 11,595 14,994r 7 Payable in foreign currencies 1,128 1,099 927 1,082 1,193 1,012 942 705 921r 8 Other financial claims 5,470 5,997 6,899 7,823 5,949 6,114 6,557 8,387 6,643r 9 Payable in dollars 4,656 5,220 6,145 7,090 5,296 5,247 5,861 7,699 5,970r 10 Payable in foreign currencies 814 777 754 733 652 866 696 688 673r 11 Commercial claims 10,600 12,166 13,845 13,660 14,480 15,336 15,879 16,259 15,866r 12 Trade receivables 9,535 11,091 12,221 11,951 12,702 13,458 13,691 13,963 13,335r 13 Advance payments and other claims 1,065 1,075 1,624 1,708 1,778 1,878 2,189 2,296 2,531r 14 Payable in dollars 10,081 11,660 13,188 13,142 13,924 14,788 15,314 15,654 15,171r 15 Payable in foreign currencies 519 505 657 518 556 548 565 605 695r By area or country Financial claims 16 Europe 9,531 10,278 8,401 10,780 8,924 9,363 10,524 11,756 13,(T^ 17 Belgium-Luxembourg 7 18 28 126 27 76 85 74 76r 18 France 332 203 153 126 145 358 193 255 258r 19 Germany 102 120 87 76 79 302 249 233 438 20 Netherlands 350 348 303 339 327 330 443 494 492 21 Switzerland 65 217 91 131 163 293 358 367 527 22 United Kingdom 8,467 9,039 7,496 9,757 7,956 7,760 8,981 10,184 10,905r 23 Canada 2,844 2,325 1,904 2,036 1,989 2,887 1,850 1,986 2,070r 24 Latin America and Caribbean 7,012 8,160 8,020 5,998 6,107 6,091 6,119 5,849 5,969 25 Bahamas 1,994 1,846 1,890 1,499 1,443 1,594 1,847 1,031 1,356 26 Bermuda 7 19 7 3 4 3 6 4 19 27 Brazil 63 47 224 84 70 68 68 127 124 28 British West Indies 4,433 5,763 5,486 4,003 4,191 4,021 3,769 4,307 4,100 29 Mexico 172 151 94 164 158 177 179 161 173 30 Venezuela 19 21 20 20 23 25 28 29 32 31 Asia 879 623 590 534 531 860 568 757 1,080r 32 Japan 605 354 213 185 207 523 246 409 721 33 Middle East oil-exporting countries2 8 5 8 6 9 8 11 4 3 34 Africa 65 106 140 62 49 37 62 64 61 35 Oil-exporting countries 7 10 12 8 7 0 3 1 1 36 All other4 33 148 180 28 158 206 268 275 299 Commercial claims 37 Europe 4,180 5,181 6,207 6,076 6,495 7,032 7,181 7,545 6,864r 38 Belgium-Luxembourg 178 189 242 209 188 212 226 220 186 39 France 650 672 963 924 1,206 1,240 1,292 1,408 1,328 40 Germany 562 669 696 670 641 805 873 957 853r 41 Netherlands 133 212 479 480 491 552 604 756 641r 42 Switzerland 185 344 313 234 300 301 392 2% 259 43 United Kingdom 1,073 1,324 1,575 1,582 1,673 1,774 1,669 1,822 1,803r 44 Canada 936 983 1,087 1,150 1,148 1,070 1,212 1,240 l,231r 45 Latin America and Caribbean 1,930 2,241 2,176 2,207 2,402 2,333 2,314 2,433 22,,557799rr 46 Bahamas 19 36 58 17 25 14 15 16 88 47 Bermuda 170 230 323 284 340 246 231 245 338 48 Brazil 226 299 293 233 251 320 309 297 392r 49 British West Indies 26 22 36 47 35 40 49 43 37 50 Mexico 368 461 507 576 650 656 653 711 740r 51 Venezuela 283 227 147 223 224 189 181 195 1% 52 Asia 2,915 2,993 3,561 3,473 3,631 4,049 4,306 4,159 4,219r 53 Japan 1,158 946 1,197 1,097 1,221 1,396 1,778 1,604 l,742r 54 Middle East oil-exporting countries2 450 453 518 418 407 459 507 510 495r 55 Africa 401 435 422 387 371 488 394 428 518 56 Oil-exporting countries 144 122 108 97 72 67 68 59 79 57 All other4 238 333 392 366 433 364 471 453 455 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 1992 1991 1992 Transaction and area or country 1990 1991 Jan.- July Aug. Sept. Oct. Nov. Dec.r Jan." Jan. U.S. corporate securities STOCKS 1 Foreign purchases 173,293 210,782R 23,270 16,462 17,934 12,919 17,201 20,587R 14,729 23,270 2 Foreign sales 188,419 199,598 25,900 15,304 16,192 13,659 16,791 19,594 17,446 25,900 3 Net purchases, or sales (-) -15,126 ll,183r -2,630 1,158 1,742 -740 410 993r -2,717 -2,630 4 Foreign countries -15,197 10,615r -2,511 1,135 1,606 -850 365 956r -2,700 -2,511 5 Europe -8,479 182R -1,344 5 753 -567 -452 -238R -1,883 -1,344 6 France -1,234 18 -28 -41 39 -95 -21 -50 -125 -28 7 Germany -367 -63 -159 -8 21 62 12 22 44 -159 8 Netherlands -397 -228 18 47 -209 38 6 -42 -52 18 9 Switzerland -2,866 -139 -287 42 96 -48 -93 -508 -7 -287 10 United Kingdom -2,980 -222R -882 -130 831 -501 -216 254R -1,637 -882 11 Canada 886 3,809 260 159 439 16 385 694 131 260 12 Latin America and Caribbean -1,330 2,177 1,020 160 315 25 366 -197 -280 1,020 13 Middle East1 -2,435 -126 -272 272 67 -402 -6 39 -35 -272 14 Other Asia -3,477 4,263 -2,211 110 -33 210 267 735 -665 -2,211 15 Japan -2,891 1,181 -2,194 -15 -96 135 156 158 -429 -2,194 16 Africa -63 153 13 6 4 -7 20 14 7 13 17 Other countries -298 158 23 423 61 -125 -215 -91 25 23 18 Nonmonetary international and regional organizations 71 568 -119 23 136 110 4455 3377 --1177 --111199 BONDS2 19 Foreign purchases 118,764 152,815R 16,301 9,994 14,989 14,492 12,844 16,035R 1155,,009922 1166,,330011 20 Foreign sales 102,047 125,001 14,195 7,681 10,812 12,315 10,558 13,059 12,351 14,195 21 Net purchases, or sales (—) 16,717 27,814r 2,106 2,313 4,177 2,177 2,286 2,976r 2,741 2,106 22 Foreign countries 17,187 27,945r 2,073 2,340 4,274 2,216 2,349 2,875r 2,698 2,073 73 Europe 10,079 13,801R 1,379 921 1,727 -111 1,873 L,284R 1,078 1,379 74 France 373 854 -2 15 -26 93 -25 110 75 -2 75 Germany -377 1,577 594 -1 106 156 213 274 113 594 76 Netherlands 172 482 -113 -1 47 -18 44 91 13 -113 77 Switzerland 284 572R -67 9 116 -52 -64 -449 73 -67 78 United Kingdom 10,383 9,390R 894 629 1,405 384 2,029 714 179 894 79 Canada 1,906 1,340 -153 34 -40 -155 86 51 114 -153 30 Latin America and Caribbean 4,291 2,449 499 378 172 130 -365 110 627 499 31 Middle East1 76 2,185 -75 430 449 350 182 313 253 -75 37 Other Asia 1,083 8,237 332 558 2,015 2,027 526 1,164 543 332 33 Japan 727 5,730 237 285 1,818 1,149 237 874 149 237 34 Africa 96 56 28 -1 4 -2 12 13 11 28 35 Other countries -344 — 123R 63 20 -53 -23 35 -60 72 63 36 Nonmonetary international and regional organizations -471 —131 33 -27 -97 -39 -63 101 43 3333 Foreign securities 37 Stocks, net purchases, or sales (-)3 -9,205 -31,325R -2,558 -3,155 -3,521 -2,159 -2,370 — 1,92LR -1,716 -2,558 38 Foreign purchases 122,641 119,752R 12,395 10,174 9,586 9,913 11,292 13,153R 11,015 12,395 39 Foreign sales 131,846 151,077R 14,953 13,329 13,107 12,072 13,662 15,074R 12,731 14,953 40 Bonds, net purchases, or sales (-) -22,412 -15,911R -1,365 -807 -2,168 -1,138 -4,750 785R -1,836 -1,365 41 Foreign purchases 314,645 324,647R 35,494 22,041 22,186 23,442 33,201 29,930" 26,2% 35,494 42 Foreign sales 337,057 340,558R 36,859 22,848 24,354 24,580 37,951 29,145R 28,132 36,859 43 Net purchases, or sales (-), of stocks and bonds -31,617 —47,236r -3,923 -3,962 -5,689 -3,297 -7,120 -l,136r -3,552 -3,923 44 Foreign countries -28,943 —46,948r -4,174 -4,476 -5,794 -3,477 -6,753 —l,571r -3,922 -4,174 45 -8,443 -34,384R -4,589 -5,035 -4,769 -2,666 -5,691 -4,882R -4,318 -4,589 46 Canada -7,502 -7,636R -906 278 -1,009 -352 -1,619 675 8 -906 47 Latin America and Caribbean -8,854 930R -822 130 108 454 549 1,086R -483 -822 48 -3,828 —7,114R 2,198 105 -305 -1,153 -197 1,503R 316 2,198 49 -137 -8 -5 8 -7 2 1 -41 159 -5 50 Other countries -180 1,265 -50 38 188 238 204 88 3% -50 51 Nonmonetary international and regional organizations -2,673 -288 251 514 105 180 --336677 443355 370 225511 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 • May 1992 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1992 1991 1992 Country or area 1990 1991r J J a a n n . . - July Aug. Sept. Oct. Nov. Dec.r Jan." Transactions, net purchases or sales (-) during period1 1 Estimated total2 18,927 22,276 10,520 725 1,356 -3,862 414 5,446R 4,404 10,520 2 Foreign countries2 18,764 22,098 9,763 407 722 -2,804 -171 5,352r 3,695 9,763 3 Europe2 18,455 9,464 5,222 -1,082 1,554 464 228 5,023r 2,720 5,222 4 Belgium-Luxembourg 10 523 559 -109 71 -190 1 201r -21 559 5 Germany2 5,880 -4,725 805 684 -360 195 326 707 -139 805 6 Netherlands 1,077 -3,735 -1,936 -997 -372 -426 549 -25 -888 -1,936 7 Sweden ... 1,152 -662 -50 -299 -239 3 46 -74 582 -50 8 Switzerland2 112 1,005 142 -218 292 -184 195 1,105 -778 142 9 United Kingdom -1,260 5,649 2,879 -398 388 -32 -311 212 2,351 2,879 10 Other Western Europe 11,463 11,395 2,823 258 1,774 1,090 -578 2,910r 1,603 2,823 11 Eastern Europe 13 13 0 -3 0 8 0 -13 10 0 12 Canada -4,627 -2,746 964 395 -118 78 -838 -441 -1,841 964 13 Latin America and Caribbean 14,734 11,539 -2,921 1,669 1,436 -1,076 -2,086 -3,842r 1,075 -2,921 14 Venezuela 33 10 266 7 -20 -2 20 7 122 266 15 Other Latin America and Caribbean 3,943 5,316 -358 242 -2,010 -1,883 -14 -525r -1,065 -358 16 Netherlands Antilles 10,757 6,213 -2,829 1,420 3,466 809 -2,092 -3,324 2,018 -2,829 17 Asia -10,952 3,451 7,675 -491 -2,115 -2,067 3,467 3,109" 844 7,675 18 Japan -14,785 -4,054 -398 45 -364 -3,625 4,111 503 -1,352 -398 19 Africa 313 689 207 7 27 10 39 -26 318 207 20 All other 842 -299 -1,384 -91 -62 -213 -981 929 579 -1,384 21 Nonmonetary international and regional organizations 163 178 757 318 634 -1,058 585 94 709 757 22 International 287 -358 197 168 654 -1,211 287 95 786 197 23 Latin American regional -2 -72 -58 150 -146 152 72 -133 -156 -58 MEMO 24 Foreign countries2 18,764 22,098 9,763 407 722 -2,804 -171 5,352r 3,695 9,763 25 Official institutions 23,218 5,318 7,744 -704 -289 830 512 7,194r 2,454 7,744 26 Other foreign2 -4,453 16,780 2,019 1,111 1,011 -3,634 -683 -1,842 1,241 2,019 Oil-exporting countries 27 Middle EasP -387 -6,822 623 -643 -3,731 -795 313 % -163 623 28 Africa4 0 239 48 0 0 0 0 0 219 48 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 Mar. 31, 1992 Rate on Mar. 31, 1992 Rate on Mar. 31, 1992 Country Country Country Percent e M ffe o c n t t iv h e Percent e M ffe o c n t t iv h e Percent e M ffe o c n t t iv h e 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.. 7.49 Mar. 1992 Japan 4.5 Dec. 1991 United Kingdom Denmark 9.5 Dec. 1991 Netherlands 8.5 Dec. 1991 France .. 9.6 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 1992 TTyyppee oorr ccoouunnttrryy 11998899 11999900 11999911 Sept. Oct. Nov. Dec. Jan. Feb. Mar. 1 9.16 8.16 5.86 5.50 5.34 4.% 4.48 4.06 4.05 4.26 ~> 13.87 14.73 11.47 10.24 10.38 10.44 10.73 10.60 10.33 10.58 3 12.20 13.00 9.07 8.59 8.29 7.75 7.50 7.23 7.42 7.63 4 7.04 8.41 9.15 9.16 9.28 9.33 9.48 9.45 9.51 9.59 5 6.83 8.71 8.01 7.90 8.09 7.89 7.99 7.55 7.28 8.16 6 7.28 8.57 9.19 9.21 9.27 9.32 9.59 9.45 9.52 9.52 7 9.27 10.20 9.49 9.30 9.20 9.41 9.97 9.86 9.93 9.99 8 Italy 12.44 12.11 12.04 11.63 11.44 11.66 12.46 12.00 12.17 12.25 9 8.65 9.70 9.30 9.01 9.22 9.39 9.61 9.41 9.50 9.56 1100 5.39 7.75 7.33 6.70 6.41 6.22 6.02 5.18 5.19 4.95 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 • May 1992 3.28 FOREIGN EXCHANGE RATES' Currency units per dollar 1991 1992 Country/currency 11998899 11999900 11999911 Oct. Nov. Dec. Jan. Feb. Mar. 1 Australia/dollar2 79.186 78.069 77.872 79.251 78.660 77.122 74.756 75.178 75.865 2 Austria/schilling 13.236 11.331 11.686 11.887 11.408 11.003 11.108 11.391 11.693 3 Belgium/franc 39.409 33.424 34.195 34.787 33.391 32.198 32.501 33.307 34.189 4 Canada/dollar 1.1842 1.1668 1.1460 1.1279 1.1302 1.1467 1.1571 1.1825 1.1928 5 China, P.R./yuan 3.7673 4.7921 5.3337 5.3917 5.3994 5.4232 5.4618 5.4776 5.4871 6 Denmark/krone 7.3210 6.1899 6.4038 6.5246 6.2947 6.0831 6.1257 6.2763 6.4462 7 Finland/markka 4.2963 3.8300 4.0521 4.1155 4.1953 4.2447 4.2971 4.4230 4.5325 8 France/franc 6.3802 5.4467 5.6468 5.7583 5.5391 5.3406 5.3858 5.5088 5.6400 9 Germany/deutsche mark 1.8808 1.6166 1.6610 1.6893 1.6208 1.5630 1.5788 1.6186 1.6616 10 Greece/drachma 162.60 158.59 182.63 188.50 183.68 179.52 182.42 187.13 192.26 11 Hong Kong/dollar 7.8008 7.7899 7.7712 7.7542 7.7591 7.7738 7.7612 7.7582 7.7463 12 India/rupee 16.213 17.492 22.712 25.797 25.802 25.818 25.863 25.992 28.378 13 Ireland/pound2 141.80 165.76 158.26 158.21 164.75 170.46 168.73 164.87 160.50 14 Italy/lira 372.28 1,198.27 1,241.28 1,263.20 1,221.04 1,182.21 1,189.76 1,215.92 1,248.28 15 Japan/yen 138.07 145.00 134.59 130.77 129.63 128.04 125.46 127.70 132.86 16 Malaysia/ringgit 2.7079 2.7057 2.7503 2.7469 2.7412 2.7417 2.6891 2.6012 2.5779 17 Netherlands/guilder.... 2.1219 1.8215 1.8720 1.9039 1.8269 1.7618 1.7780 1.8218 1.8706 18 New Zealand/dollar... 59.561 59.619 57.832 56.306 56.352 55.256 54.194 54.177 54.790 19 Norway/krone 6.9131 6.2541 6.4912 6.6136 6.3643 6.1558 6.2044 6.3472 6.5188 20 Portugal/escudo 157.53 142.70 144.77 145.41 141.43 138.90 136.92 139.47 143.26 21 Singapore/dollar 1.9511 1.8134 1.7283 1.6940 1.6709 1.6453 1.6337 1.6361 1.6601 22 South Africa/rand 2.6214 2.5885 2.7633 2.8314 2.7916 2.7665 2.7831 2.8156 2.8830 23 South Korea/won 674.29 710.64 736.73 753.54 757.44 761.68 767.09 769.93 775.68 24 Spain/peseta 118.44 101.% 104.01 106.54 102.56 99.70 100.05 101.73 104.88 25 Sri Lanka/rupee 35.947 40.078 41.200 42.179 42.374 42.523 42.665 42.879 42.744 26 Sweden/krona 6.4559 5.9231 6.0521 6.1552 5.9246 5.7158 5.7461 5.8764 6.0263 27 Switzerland/franc 1.6369 1.3901 1.4356 1.4781 1.4348 1.3855 1.4039 1.4561 1.5094 28 Taiwan/dollar 26.407 26.918 26.759 26.406 25.975 25.759 25.150 25.049 25.407 29 Thailand/baht y 25.725 25.609 25.528 25.397 25.497 25.431 25.328 25.463 25.637 30 United Kingdom/pound'' 163.82 178.41 176.74 172.31 177.% 182.72 180.90 177.78 172.38 MEMO 31 United States/dollar3 98.60 89.09 89.84 90.69 87.98 85.65 86.09 88.04 90.44 1. Averages of certified noon buying rates in New York for cable transfers. currencies of ten industrial countries. The weight for each of the ten countries is Data in this table also appear in the Board's G.5 (405) monthly statistical the 1972-76 average world trade of that country divided by the average world release. For ordering address, see inside front cover. trade of all ten countries combined. Series revised as of August 1978 (see Federal 2. Value in U.S. cents. Reserve Bulletin, vol. 64 (August 1978), p. 700). 3. Index of weighted-average exchange value of U.S. dollar against the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

69 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 March 31, 1991 August 1991 A72 June 30,1991 November 1991 A70 September 30, 1991 February 1992 A70 December 31,1991 May 1992 A70 Terms of lending at commercial banks February 1991 August 1991 A78 May 1991 October 1991 A72 August 1991 December 1991 A70 November 1991 March 1992 A70 Assets and liabilities of U.S. branches and agencies of foreign banks March 31, 1991 November 1991 A76 June 30, 1991 December 1991 A74 September 30, 1991 February 1992 A80 December 31, 1991 May 1992 A76 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 September 30, 1991 May 1992 A81 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • May 1992 4.20 DOMESTIC AND FOREIGN OFFICES, Insured Commercial Bank Assets and Liabilities1-2 Consolidated Report of Condition, December 31, 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 3,410,976 1,905,402 425,925 1,560,354 1,130,942 374,632 2 Cash and balances due from depository institutions 302,173 208,273 88,069 120,204 69,787 24.113 3 Cash items in process of collection, unposted debits, and currency and coin i 89,857 1,855 88,002 36,700 4 Cash items in process of collection and unposted debits i n.a. n.a. 69,423 24,473 I 5 Currency and coin i n.a. n.a. 18,579 12,227 1 6 Balances due from depository institutions in the United States n.a. 34,702 23,500 11,203 18,423 n.a. 7 Balances due from banks in foreign countries and foreign central banks 1 67,545 62,566 4,979 3,459 1 8 Balances due from Federal Reserve Banks • 16,168 148 16,020 11,204 t 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. 7,785 13,806 99,,224433 10 Total securities, loans and lease financing receivables, net 2,821,771 1,483,981 n.a. n.a. 1,002,640 335,150 11 Total securities, book value 687,181 286,350 31,846 254,505 278,295 122,536 12 U.S. Treasury securities and U.S. government agency and corporation obligations 514,369 202,153 3,662 119988,,449922 221144,,881133 9977,,440033 N U.S. Treasury securities n.a. 69,939 2,011 67,928 87,827 n.a. 14 U.S. government agency and corporation obligations n.a. 132,215 1,651 130,564 126,986 n.a. 15 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 154,519 76,400 1,251 7755,,114488 5555,,664455 2222,,447755 16 All other n.a. 55,815 399 55,416 71,342 n.a. 17 Securities issued by states and political subdivisions in the United States 72,754 23,376 712 22,663 33,484 15,894 18 Other domestic debt securities n.a. 28,390 939 27,451 24,898 n.a. 19 All holdings of private certificates of participation in pools of residential mortgages 3,556 22,,008800 1100 22,,006699 11,,223355 224411 7,0 All other domestic debt securities 57,584 26,310 929 25,381 23,663 7,611 7.1 Foreign debt securities n.a. 26,552 25,240 1,313 411 n.a. ?,? Equity securities 11,955 5,880 1,293 4,587 4,689 1,386 73 Marketable 6,089 2,128 105 2,023 2,931 1,030 74 Investments in mutual funds 3,718 1,249 19 1,230 1,548 921 25 Other 2,523 942 87 855 1,433 148 76 Less: Net unrealized loss 153 64 2 62 50 39 27 Other equity securities 5,866 3,752 1,188 2,563 1,758 356 28 Federal funds sold and securities purchased under agreements to resell 148,557 75,447 513 74,934 52,060 21,050 7,9 Federal funds sold 129,835 61,351 n.a. n.a. 47,722 20,762 30 Securities purchased under agreements to resell 18,722 14,096 n.a. n.a. 4,339 287 31 Total loans and lease financing receivables, gross 2,051,753 1,163,182 204,622 958,560 692,005 196,566 3? LESS: Unearned income on loans 10,897 4,113 1,257 2,856 5,0% 1,688 33 Total loans and leases (net of unearned income) 2,040,857 1,159,069 203,365 955,704 686,910 194,878 34 LESS: Allowance for loan and lease losses 54,429 36,490 n.a. n.a. 14,625 3,313 35 LESS: Allocated transfer risk reserves 395 395 n.a. n.a. 0 0 36 EQUALS: Total loans and leases, net 1,986,033 1,122,184 n.a. n.a. 672,285 191,565 Total loans, gross, by category 37 Loans secured by real estate 846,518 409,527 2255,,996644 338833,,556633 333344,,008855 110022,,990066 38 Construction and land development 4 i 64,258 31,541 6,363 39 Farmland T T T 2,145 6,183 10,089 40 1-4 family residential properties I i 1 195,252 175,622 57,150 41 Revolving, open-end loans, extended under lines of credit n.a. n.a. n.a. 37,556 29,268 3,393 47 | I | 157,6% 146,354 53,758 43 Multifamily (5 or more) residential properties 1 1 1 10,812 10,935 2,086 44 Nonfarm nonresidential properties T T t 111,0% 109,804 27,218 45 Loans to depository institutions 46,455 36,463 14,651 21,812 9,749 243 46 To commercial banks in the United States n.a. 19,264 690 18,574 9,311 n.a. 47 To other depository institutions in the United States n.a. 1,212 222 990 401 n.a. 48 To banks in foreign countries n.a. 15,987 13,739 2,248 37 n.a. 49 Loans to finance agricultural production and other loans to farmers 34,870 5,718 295 5,424 9,844 19,308 50 Commercial and industrial loans 555,983 393,319 97,186 2%,132 127,906 34,758 51 To U.S. addressees (domicile) n.a. 317,111 23,021 294,090 127,367 n.a. 5? To non-U.S. addressees (domicile) n.a. 76,208 74,166 2,042 539 n.a. 53 Acceptances of other banks 2,000 899 459 440 584 517 54 U.S. banks n.a. 364 39 324 n.a. n.a. 55 Foreign banks n.a. 535 420 116 n.a. n.a. 56 Loans to individuals for household, family, and other personal expenditures (includes 388,831 169,339 18,830 150,509 184,150 35,343 57 Credit cards and related plans 138,521 61,363 n.a. n.a. 74,576 2,581 58 Other (includes single payment and installment) 250,311 107,975 n.a. n.a. 109,574 32,761 59 Obligations (other than securities) of states and political subdivisions in the U.S. (includes nonrated industrial development obligations) 29,056 16,387 119999 1166,,118899 1111,,225533 11,,441166 60 1,554 1,052 67 985 434 68 61 27,503 15,335 132 15,203 10,819 1,348 67 111,407 101,259 42,637 58,621 8,561 1,587 63 Loans to foreign governments and official institutions n.a. 26,244 25,311 933 73 n.a. 64 Other loans n.a. 75,015 17,326 57,689 8,488 n.a. 65 Loans for purchasing and carrying securities n.a. n.a. n.a. 12,890 1,372 n.a. 66 All other loans n.a. n.a. n.a. 44,799 7,115 n.a. 67 Lease financing receivables 36,633 30,271 4,401 25,870 5,874 488 68 Assets held in trading accounts 67,168 65,356 35.601 29,591 1,578 234 69 Premises and fixed assets (including capitalized leases) 51,870 28,166 n.a. 17,558 6,147 70 Other real estate owned 27,381 16,583 T n.a. 8,628 2,170 71 Investments in unconsolidated subsidiaries and associated companies 3,303 2,881 i n.a. 363 59 72 Customers' liability on acceptances outstanding 16,386 16,068 n.a. n.a. 298 20 73 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs n.a. n.a. 1 52,963 n.a. n.a. 74 Intangible assets 12,105 7,116 I n.a. 4,592 397 75 Other assets 108,819 76,978 T n.a. 25,498 6,342 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 Total Total Foreign Domestic Over 100 Under 10< 76 Total liabilities, limited-life preferred stock, and equity capital ,410,976 1,905,402 n.a. n.a. 1,130,942 374,632 77 Total liabilities7 ,180,345 1,794,359 425,925 1,449,311 1,045,216 340,769 78 Limited-life preferred stock 10 0 n.a. n.a. 8 2 79 Total deposits .671,035 1,400,119 304,557 1,095,563 938,790 332,125 80 Individuals, partnerships, and corporations 184,244 1,009,606 874,699 306,111 81 U.S. government > 4,024 2,369 681 82 States and political subdivisions in the United States 35,848 43,022 20,551 83 Commercial banks in the United States n.a. n.a. n.a. 24,849 8,256 1,336 84 Other depository institutions in the United States 4,105 3,660 1,124 85 Banks in foreign countries 6,367 105 n.a. 86 Foreign governments and official institutions 20,400 19,102 1,298 45 n.a. 87 Certified and official checks 19,439 10,542 1,075 9,466 6,635 2,262 88 All other8 n.a. n.a. 100,135 n.a. n.a. 61 89 Total transaction accounts 354,937 257,221 90,244 90 Individuals, partnerships, and corporations 299,209 226,240 79,581 91 U.S. government 2,877 2,068 578 92 States and political subdivisions in the United States 12,701 14,600 6,857 93 Commercial banks in the United States 20,708 6,326 725 94 Other depository institutions in the United States 3,084 1,248 214 95 Banks in foreign countries 5,894 94 n.a. % Foreign governments and official institutions 998 10 n.a. 97 Certified and official checks 9,466 6,635 2,262 98 All other n.a. n.a. 27 99 Demand deposits (included in total transaction accounts) 258,206 148,471 44,443 100 Individuals, partnerships, and corporations 206,841 126,075 38,884 101 U.S. government 2,819 1,959 566 102 States and political subdivisions in the United States 8,481 6,151 1,773 103 Commercial banks in the United States 20,707 6,321 724 104 Other depository institutions in the United States n.a. n a. n.a. 3,004 1,227 207 105 Banks in foreign countries 5,891 94 n.a. 106 Foreign governments and official institutions 996 10 n.a. 107 Certified and official checks 9,466 6,635 2,262 108 All other n.a. n.a. 26 109 Total nontransaction accounts 740,626 681,569 241,882 110 Individuals, partnerships, and corporations 710,397 648,459 226,530 111 U.S. government 1,147 301 103 112 States and political subdivisions in the United States 23,147 28,422 13,695 113 Commercial banks in the United States 4,141 1,929 610 114 U.S. branches and agencies of foreign banks 325 204 n.a. 115 Other commercial banks in the United States 3,816 1,726 n.a. 116 Other depository institutions in the United States 1,021 2,412 910 117 Banks in foreign countries 473 11 n.a. 118 Foreign branches of other U.S. banks 41 9 n.a. 119 Other banks in foreign countries 432 2 n.a. 120 Foreign governments and official institutions 300 34 n.a. 121 All other n.a. n.a. 34 122 Federal funds purchased and securities sold under agreements to repurchase.. 229,679 168,832 1,895 166,936 57,361 3,487 123 Federal funds purchased 147,895 112,938 n. a. n.a. 33,720 1,237 124 Securities sold under agreements to repurchase 81,785 55,893 n. a. n.a. 23,641 2,250 125 Demand notes issued to the U.S. Treasury n.a. n.a. n. a. 26,019 4,514 355 126 Other borrowed money 115,651 8* ,064 33,139 54,926 26,545 1,041 127 Banks liability on acceptances executed and outstanding 16,498 16,180 3,623 12,558 298 20 128 Notes and debentures subordinated to deposits 24,813 23,294 n a. n.a. 1,418 101 129 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs... n. a. n. a. n. a. 27,914 n.a. n.a. 130 All other liabilities 91,781 71,850 n. a. n.a. 16,291 3,640 131 Total equity capital9 230,621 111,042 n.a. n.a. 85,718 33,861 MEMO 132 Holdings of commercial paper included in total loans, gross 934 386 548 2,202 n.a. 133 Total individual retirement accounts (IRA) and Keogh plan accounts 66,910 62,641 19,419 134 Total brokered deposits 41,536 17,584 729 135 Total brokered retail deposits 26,085 15,203 700 136 Issued in denominations of $100,000 or less 1,465 2,903 563 137 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 24,620 12,300 137 Savings deposits 138 Money market deposit accounts (MMDAs) 225,485 155,662 39,620 139 Other savings deposits (excluding MMDAs) 105,880 98,169 31,617 140 Total time deposits of less than $100,000 250,071 322 136,865 141 Time certificates of deposit of $100,000 or more 134,521 102,244 32,666 142 Open-account time deposits of $100,000 or more 24,669 3,526 1,113 143 All NOW accounts (including Super NOW) 95,805 106,917 44,560 144 Total time and savings deposits n. a. n. a. n. a. 837,357 790,319 287,682 Quarterly averages 145 Total loans 937,553 674,987 192,950 146 Obligations (other than securities) of states and political subdivisions in the United States 16,872 11,197 n.a. 147 Transaction accounts in domestic offices (NOW accounts, ATS accounts, and telephone and preauthorized transfer accounts) 90,886 103,282 43,950 Nontransaction accounts in domestic offices 148 Money market deposit accounts (MMDAs) 223,898 154,110 38,991 149 Other savings deposits 101,552 95,182 30,616 150 Time certificates of deposit of $100,000 or more 142,423 106,345 33,094 151 All other time deposits 287,939 329,531 138,945 152 Number of banks 11,896 227 n.a. 2,723 8,946 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 • May 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, December 31, 1991 Millions of dollars Members NNoonn-- Item TToottaall mmeemmbbeerrss Total National State 1 Total assets' 2,691,296 2,093,589 1,662,629 430,960 597,707 2 Cash and balances due from depository institutions 189,991 157,489 128,186 29,303 32,501 3 Cash items in process of collection and unposted debits 93,8% 83,995 68,213 15,783 9,901 4 Currency and coin 30,807 25,322 21,003 4,320 5,484 5 Balances due from depository institutions in the United States 29,626 19,100 15,518 3,582 10,526 6 Balances due from banks in foreign countries and foreign central banks 8,438 6,895 5,9% 899 1,543 7 Balances due from Federal Reserve Banks 27,224 22,177 17,458 4,719 5,047 8 Total securities, loans and lease financing receivables, (net of unearned income) 2,302,408 1,766,727 1,423,440 343,288 535,681 9 Total securities, book value 532,800 399,535 306,413 93,123 133,264 10 U.S. Treasury securities 155,754 111,298 86,810 24,488 44,456 11 U.S. government agency and corporation obligations 257,550 202,461 156,625 45,837 55,089 12 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 130,793 107,981 87,212 20,769 22,812 13 All other 126,757 94,480 69,413 25,067 32,277 14 Securities issued by states and political subdivisions in the United States 56,147 41,059 30,416 10,643 15,088 15 Other domestic debt securities 52,349 37,990 27,039 10,951 14,360 16 All holdings of private certificates of participation in pools of residential mortgages .. 3,305 2,746 2,311 434 559 17 All other 49,044 35,244 24,727 10,516 13,801 18 Foreign debt securities 1,723 1,289 950 340 434 19 Equity securities 9,276 5,439 4,574 865 3,837 20 Marketable 4,955 1,903 1,712 191 3,052 21 Investments in mutual funds 2,778 1,367 1,323 44 1,411 22 Other 2,289 557 408 149 1,732 23 Less: Net unrealized loss 112 21 19 2 91 24 Other equity securities 4,321 3,536 2,862 673 786 25 Federal funds sold and securities purchased under agreements to resell10 126,995 101,402 77,424 23,978 25,592 26 Federal funds sold 47,722 30,861 27,061 3,800 16,861 27 Securities purchased under agreements to resell 4,339 1,944 1,643 301 2,394 28 Total loans and lease financing receivables, gross 1,650,565 1,271,422 1,044,154 227,268 379,143 29 LESS: Unearned income on loans 7,951 5,632 4,551 1,081 2,319 30 Total loans and leases (net of unearned income) 1,642,613 1,265,790 1,039,603 226,187 376,824 Total loans, gross, by category 31 Loans secured by real estate 717,648 534,410 450,136 84,275 183,238 32 Construction and land development 95,799 73,751 60,464 13,287 22,049 33 Farmland 8,327 5,217 4,485 731 3,111 34 1-4 family residential properties 370,874 278,020 235,508 42,512 92,854 35 Revolving, open-end and extended under lines of credit 66,825 51,180 42,808 8,372 15,645 36 All other loans 304,050 226,840 192,700 34,140 77,210 37 Multifamily (5 or more) residential properties 21,746 15,995 13,579 2,416 5,752 38 Nonfarm nonresidential properties 220,901 161,429 136,100 25,329 59,472 39 Loans to commercial banks in the United States 27,886 18,812 15,252 3,560 9,074 40 Loans to other depository institutions in the United States 1,391 1,247 1,158 90 143 41 Loans to banks in foreign countries 2,284 2,212 1,143 1,069 72 42 Loans to finance agricultural production and other loans to farmers 15,267 10,936 9,931 1,005 4,331 43 Commercial and industrial loans 424,038 345,870 275,440 70,429 78,169 44 To U.S. addressees (domicile) 421,457 343,784 273,847 69,936 77,673 45 To non-U.S. addressees (domicile) 2,581 2,086 1,593 493 495 46 Acceptances of other banks11 1,024 661 483 179 363 47 Of U.S. banks 518 371 228 143 147 48 Of foreign banks 151 100 95 6 50 49 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 334,659 245,7% 208,577 37,220 88,862 50 Credit cards and related plans 74,576 45,254 42,550 2,704 29,322 51 Other (includes single payment and installment) 109,574 67,320 56,764 10,557 42,253 52 Loans to foreign governments and official institutions 1,006 %3 886 78 43 53 Obligations (other than securities) of states and political subdivisions in the United States 27,441 22,719 16,922 5,797 4,723 54 Taxable 1,419 1,199 908 291 220 55 Tax-exempt 26,022 21,520 16,014 5,506 4,503 56 Other loans 66,176 61,155 42,386 18,769 5,021 57 Loans for purchasing and carrying securities 14,263 13,1% 6,838 6,358 1,067 58 All other loans 51,914 47,959 35,548 12,411 3,955 59 Lease financing receivables 31,744 26,639 21,842 4,798 5,104 60 Customers' liability on acceptances outstanding 12,593 11,540 8,561 2,978 1,053 61 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs 52, %3 46,906 20,907 25,998 6,057 62 Remaining assets 186,304 157,833 102,441 55,391 28,471 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A73 4.21—Continued Members Item National 63 Total liabilities and equity capital 2,691,296 2,093,589 1,662,629 430,960 64 Total liabilities4 2,494,528 1,945,074 1,545,413 399,660 65 Total deposits 2,034,353 1,563,625 1,277,759 285,866 66 Individuals, partnerships, and corporations 1,884,305 1,444,822 1,182,813 262,009 67 U.S. government 6,392 5,376 4,716 660 68 States and political subdivisions in the United States 78,871 58,347 47,627 10,720 69 Commercial banks in the United States 33,105 29,887 24,013 5,875 70 Other depository institutions in the United States 7,765 5,408 4,373 1,035 71 Banks in foreign countries 6,472 5,930 3,652 2,277 72 Foreign governments and official institutions 1,342 1,231 867 364 73 Certified and official checks 16,101 12,624 9,698 2,927 74 Total transaction accounts 612,158 489,404 395,501 93,903 75 Individuals, partnerships, and corporations 525,449 415,456 337,658 77,798 76 U.S. government 4,944 4,009 3,435 574 77 States and political subdivisions in the United States 27,301 21,949 17,527 4,422 78 Commercial banks in the United States 27,034 25,186 20,239 4,947 79 Other depository institutions in the United States 4,332 3,542 2,811 732 80 Banks in foreign countries 5,988 5,677 3,514 2,164 81 Foreign governments and official institutions 1,008 962 621 340 82 Certified and official checks 16,101 12,624 9,698 2,927 83 Demand deposits (included in total transaction accounts) 406,677 332,972 264,685 68,287 84 Individuals, partnerships, and corporations 332,916 268,642 214,908 53,734 85 U.S. government 4,778 3,905 3,342 563 86 States and political subdivisions in the United States 14,632 12,531 9,647 2,884 87 Commercial banks in the United States 27,028 25,184 20,238 4,946 88 Other depository institutions in the United States 4,231 3,448 2,718 731 89 Banks in foreign countries 5,985 5,676 3,514 2,163 90 Foreign governments and official institutions 1,006 961 621 340 91 Certified and official checks 16,101 12,624 9,698 2,927 92 Total nontransaction accounts 1,422,195 1,074,221 882,258 191,963 93 Individuals, partnerships, and corporations 1,358,856 1,029,366 845,155 184,211 94 U.S. government 1,448 1,368 1,281 87 95 States and political subdivisions in the United States 51,569 36,398 30,100 6,298 96 Commercial banks in the United States 6,071 4,702 3,774 928 97 U.S. branches and agencies of foreign banks 529 316 183 133 98 Other commercial banks in the United States 5,542 4,386 3,591 795 99 Other depository institutions in the United States 3,433 1,866 1,563 303 100 Banks in foreign countries 484 252 139 114 101 Foreign branches of other U.S. banks 50 50 11 39 102 Other banks in foreign countries 434 203 128 75 103 Foreign governments and official institutions 334 269 246 24 104 Federal funds purchased and securities sold under agreements to repurchase12 224,297 188,541 128,243 60.299 105 Federal funds purchased 33,720 23,507 19,752 3,756 106 Securities sold under agreements to repurchase 23,641 12,889 10,726 2,163 107 Demand notes issued to the U.S. Treasury 30,533 28,124 18,345 9,779 108 Other borrowed money 81,471 57,572 42,957 14,615 109 Banks liability on acceptances executed and outstanding 12,856 11,802 8,788 3,014 110 Notes and debentures subordinated to deposits 1,418 961 813 149 111 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs 27,914 22,588 20,141 2,447 112 Remaining liabilities 109,600 94,448 68,509 25,939 113 Total equity capital9 196,768 148,515 117,215 31.300 MEMO 114 Holdings of commercial paper included in total loans, gross 2,750 1,188 1,156 33 115 Total individual retirement accounts (IRA) and Keogh plan accounts 129,551 100,073 82,570 17,503 116 Total brokered deposits 59,120 43,189 37,249 5,940 117 Total brokered retail deposits 41,288 29,748 25,705 4,042 118 Issued in denominations of $100,000 or less 4,368 2,655 2,416 239 119 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 36,921 27,093 23,289 3,803 Savings deposits 120 Money market deposit accounts (MMDAs) 381,147 301,158 247,453 53,705 121 Other savings accounts 204,049 157,702 118,711 38,991 122 Total time deposits of less than $100,000 572,039 423,012 356,054 66,959 123 Time certificates of deposit of $100,000 or more 236,765 169,671 146,580 23,090 124 Open-account time deposits of $100,000 or more 28,195 22,678 13,460 9,219 125 All NOW accounts (including Super NOW accounts) 202,721 154,665 129,260 25,405 126 Total time and savings deposits 1,627,676 1,230,653 1,013,074 217,579 Quarterly averages 127 Total loans 1,612,540 1,243,081 1,018,126 224,955 128 Obligations (other than securities) of states and political subdivisions in the United States ... 28,069 23,473 17,383 6,090 129 Transaction accounts (NOW accounts, ATS accounts, and telephone preauthorized transfer accounts) 194,168 147,846 123,551 24,295 Nontransaction accounts 130 Money market deposit accounts (MMDAs) 378,008 299,116 245,267 53,849 131 Other savings deposits 196,734 151,860 113,644 38,216 132 Time certificates of deposits of $100,000 or more 248,769 178,461 152,901 25,560 133 All other time deposits 617,469 462,228 384,048 78,179 134 Number of banks 2,950 1,596 1,335 261 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 • May 1992 4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities1-2 6 Consolidated Report of Condition, December 31, 1991 Millions of dollars Members NNoonn-- Item TToottaall mmeemmbbeerrss Total National State 1 Total assets6 3,065,928 2,239,904 1,777,348 462,557 826,023 2 Cash and balances due from depository institutions 214,104 167,256 135,915 31,341 46,848 3 Currency and coin 34,328 26,716 22,105 4,611 7,612 4 Noninterest-bearing balances due from commercial banks 30,833 17,247 13,476 3,771 13,586 5 Other 148,943 123,293 100,334 22,959 25,650 6 Total securities, loans, and lease financing receivables (net of unearned income) 2,640,871 1,898,595 1,526,707 371,888 742,276 7 Total securities, book value 655,335 447,734 345,425 102,309 207,601 8 U.S. Treasury securities and U.S. government agency and corporation obligations 510,708 352,666 275,085 77,581 158,042 9 Securities issued by states and political subdivisions in the United States 72,041 46,756 34,889 11,868 25,285 10 Other debt securities 61,925 42,219 30,355 11,863 19,706 11 All holdings of private certificates of participation in pools of residential mortgages .. 3,546 2,855 2,393 462 691 12 All other 58,379 39,364 27,962 11,401 19,015 13 Equity securities 10,662 6,093 5,0% 998 4,568 14 Marketable 5,984 2,306 2,049 256 3,679 15 Investments in mutual funds 3,699 1,752 1,647 105 1,947 16 Other 2,436 588 433 155 1,848 17 Less: Net unrealized loss 151 34 30 4 117 18 Other equity securities 4,677 3,788 3,047 741 889 19 Federal funds sold and securities purchased under agreements to resell 148,044 110,533 84,542 25,991 37,511 20 Federal funds sold 68,484 39,864 34,093 5,771 28,620 21 Securities purchased under agreements to resell 4,626 2,071 1,729 342 2,554 22 Total loans and lease financing receivables, gross 1,847,131 1,346,636 1,101,812 244,824 500,4% 23 LESS: Unearned income on loans 9,640 6,308 5,072 1,236 3,332 24 Total loans and leases (net of unearned income) 1,837,491 1,340,328 1,0%,740 243,588 497,164 Total loans, gross, by category 25 Loans secured by real estate 820,554 573,289 479,788 93,501 247,265 26 Construction and land development 102,162 76,333 62,333 13,999 25,830 27 Farmland 18,416 8,420 7,060 1,360 9,9% 28 1-4 family residential properties 428,025 299,810 251,9% 47,815 128,214 29 Revolving, open-end loans, and extended under lines of credit 70,217 52,666 43,863 8,803 17,552 30 All other loans 357,807 247,145 208,133 39,012 110,663 31 Multifamily (5 or more) residential properties 23,832 16,761 14,168 2,593 7,071 32 Nonfarm nonresidential properties 248,119 171,965 144,230 27,734 76,154 33 Loans to depository institutions 31,804 22,420 17,686 4,733 9,384 34 Loans to finance agricultural production and other loans to farmers 34,576 17,584 15,278 2,307 16,991 35 Commercial and industrial loans 458,796 359,981 285,914 74,067 98,815 36 Acceptances of other banks 1,541 859 652 207 682 37 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 370,002 259,752 219,483 40,268 110,250 38 Credit cards and related plans 77,157 46,449 43,617 2,831 30,709 39 Other (includes single payment installment) 142,335 80,081 66,603 13,478 62,254 40 Obligations (other than securities) of states and political subdivisions in the United States 28,857 23,228 17,343 5,886 5,629 41 Taxable 1,487 1,236 942 294 251 42 Tax-exempt 27,371 21,993 16,401 5,592 5,378 43 All other loans 68,769 62,717 43,684 19,033 6,052 44 Lease financing receivables 32,232 26,805 21,983 4,821 5,428 45 Customers' liability on acceptances outstanding 12,613 11,556 8,577 2,979 1,057 46 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs 52,963 46,906 20,907 25,998 6,057 47 Remaining assets 198,339 162,497 106,148 56,349 35,842 48 Total liabilities and equity capital 3,065,928 2,239,904 1,777,348 462,557 826,023 49 Total liabilities4 2,835,297 2,078,484 1,650,068 428,417 756,812 50 Total deposits 2,366,478 1,693,223 1,379,475 313,749 673,255 51 Individuals, partnerships, and corporations 2,190,416 1,564,350 1,276,735 287,615 626,066 52 U.S. government 7,073 5,684 4,915 769 1,389 53 States and political subdivisions in the United States 99,422 65,834 53,682 12,152 33,588 54 Commercial banks in the United States 34,440 30,798 24,513 6,285 3,643 55 Other depository institutions in the United States 8,888 5,789 4,647 1,142 3,099 56 Certified and official checks 18,363 13,565 10,430 3,135 4,799 57 All other 7,875 7,204 4,554 2,650 671 58 Total transaction accounts 702,401 526,114 424,704 101,410 176,287 59 Individuals, partnerships, and corporations 605,030 447,690 363,494 84,1% 157,341 60 U.S. government 5,522 4,283 3,613 670 1,240 61 States and political subdivisions in the United States 34,158 24,428 19,561 4,866 9,730 62 Commercial banks in the United States 27,759 25,853 20,568 5,286 1,906 63 Other depository institutions in the United States 4,546 3,635 2,887 748 911 64 Certified and official checks 18,363 13,565 10,430 3,135 4,799 65 All other 7,023 6,662 4,152 2,510 361 66 Demand deposits (included in total transaction accounts) 451,120 351,710 279,333 72,377 99,410 67 Individuals, partnerships, and corporations 371,800 284,773 227,716 57,057 87,026 68 U.S. government 5,345 4,176 3,518 658 1,168 69 States and political subdivisions in the United States 16,405 13,147 10,158 2,989 3,258 70 Commercial banks in the United States 27,752 25,852 20,567 5,285 1,900 71 Other depository institutions in the United States 4,438 3,538 2,792 746 900 72 Certified and official checks 18,363 13,565 10,430 3,135 4,799 73 All other 7,018 6,659 4,151 2,508 358 74 Total nontransaction accounts 1,664,077 1,167,109 954,771 212,339 4%,%7 75 Individuals, partnerships, and corporations 1,585,386 1,116,660 913,241 203,419 468,725 76 U.S. government 1,551 1,401 1,302 99 150 77 States and political subdivisions in the United States 65,264 41,406 34,121 7,286 23,857 78 Commercial banks in the United States 6,681 4,944 3,945 999 1,737 79 Other depository institutions in the United States 4,343 2,155 1,760 394 2,188 80 All other 852 542 401 141 310 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A75 4.22—Continued Members Item TToottaall mmee NN mm oo bb nn ee -- rrss Total National State 81 Federal funds purchased and securities sold under agreements to repurchase 227,784 190,158 129,372 60,786 37,626 82 Federal funds purchased 34,957 24,122 20,164 3,958 10,835 83 Securities sold under agreements to repurchase 25,891 13,891 11,443 2,449 12,000 84 Demand notes issued to the U.S. Treasury 30,888 28,263 18,459 9,804 2,625 85 Other borrowed money 82,512 58,126 43,442 14,684 24,387 86 Banks liability on acceptances executed and outstanding 12,875 11,819 8,804 3,015 1,057 87 Notes and debentures subordinated to deposits 1,519 981 825 156 537 88 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs 27,914 22,588 20,141 2,447 5,326 89 Remaining liabilities 113,240 95,914 69,691 26,223 17,326 90 Total equity capital9 230,631 161,420 127,280 34,140 69,211 MEMO 91 Assets held in trading accounts" 31,402 30,094 17,031 13,063 1,309 92 U.S. Treasury securities 12,769 12,659 5,599 7,060 110 93 U.S. government agency corporation obligations 4,535 4,362 3,323 1,039 173 94 Securities issued by states and political subdivisions in the United States 1,731 1,702 1,274 429 29 95 Other bonds, notes, and debentures 525 448 214 234 77 96 Certificates of deposit 1,145 1,138 639 499 7 97 Commercial paper 75 75 75 0 0 98 Bankers acceptances 3,167 2,967 1,903 1,064 200 99 Other 6,688 6,504 3,791 2,714 184 100 Total individual retirement accounts (IRA) and Keogh plan accounts 148,970 107,354 88,300 19,053 41,616 101 Total brokered deposits 59,848 43,407 37,374 6,033 16,441 102 Total brokered retail deposits 41,988 29,961 25,828 4,133 12,027 103 Issued in denominations of $100,000 or less 4,931 2,838 2,524 313 2,093 104 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 37,058 27,123 23,303 3,820 9,935 Savings deposits 105 Money market deposit accounts (MMDAs) 420,767 317,749 260,489 57,260 103,018 106 Other savings deposits 235,666 170,105 128,393 41,712 65,561 107 Total time deposits of less than $100,000 708,904 473,449 395,343 78,106 235,455 108 Time certificates of deposit of $100,000 or more 269,431 182,763 156,789 25,974 86,668 109 Open-account time deposits of $100,000 or more 29,308 23,043 13,756 9,287 6,265 110 All NOW accounts (including Super NOW) 247,281 172,222 143,513 28,710 75,058 111 Total time and savings deposits 1,915,358 1,341,513 1,100,142 241,371 573,845 Quarterly averages 112 Total loans 1,805,490 1,317,072 1,074,887 242,185 488,418 113 Transaction accounts (NOW accounts, ATS accounts, and telephone and preauthorized transfer accounts) 238,118 165,109 137,563 27,545 73,010 Nontransaction accounts 114 Money market deposit accounts (MMDAs) 416,999 315,492 258,136 57,356 101,507 115 Other savings deposits 227,350 163,870 123,040 40,831 63,480 116 Time certificates of deposit of $100,000 or more 281,863 191,670 163,181 28,489 90,193 117 All other time deposits 756,415 513,429 423,964 89,465 242,986 118 Number of banks 11,896 4,762 3,789 973 7,134 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

A70 Special Tables • May 1992 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 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 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 1 Total assets4 704,506 307,639 523,665 237,601 88,752 41,383 54,155 19,785 2 Claims on nonrelated parties 615,808 221,402 451,177 180,736 82,068 21,112 53,813 15,704 3 Cash and balances due from depository institutions 159,637 133,740 132,102 107,978 13,301 12,672 12,519 12,185 4 Cash items in process of collection and unposted debits 1,759 0 1,712 0 29 0 15 00 5 Currency and coin (U.S. and foreign) 27 n.a. 20 n.a. 1 n.a. 11 n.a. 6 Balances with depository institutions in United States .. 87,353 65,232 73,126 52,308 7,702 7,129 55,,664499 5,393 7 U.S. branches and agencies of other foreign banks (including their IBFs) 78,834 61,681 65,739 49,191 7,187 6,903 5,209 55,,220033 8 Other depository institutions in United States (including their IBFs) 8,519 3,551 7,387 3,117 516 222266 440 119900 9 Balances with banks in foreign countries and with foreign central banks 69,731 68,508 56,657 55,670 5,548 5,543 6,793 6,791 10 Foreign branches of U.S. banks 2,357 2,186 2,202 2,032 52 51 97 97 11 Other banks in foreign countries and foreign central banks 67,374 66,323 54,455 53,638 5,495 5,492 6,695 6,694 12 Balances with Federal Reserve Banks 767 n.a. 587 n.a. 20 n.a. 60 n.a. 13 Total securities and loans 377,199 73,720 255,194 60,854 61,303 7,522 35,170 2,475 14 Total securities, book value 67,011 15,619 61,407 14,380 3,574 769 1,610 417 15 U.S. Treasury 20,323 n.a. 20,103 n.a. 60 n.a. 118 n.a. 16 Obligations of U.S. government agencies and corporations 10,707 n.a. 1100,,226644 n.a. 228844 n.a. 9977 n.a. 17 Other bonds, notes, debentures and corporate stock (including state and local securities) 35,982 15,619 31,040 14,380 3,230 769 1,394 441177 18 Federal funds sold and securities purchased under agreements to resell 23,914 2,868 21,679 1,976 485 180 1,445 709 19 U.S. branches and agencies of other foreign banks 10,468 1,802 8,919 1,215 275 109 1,073 476 70 Commercial banks in United States 44,,556666 30 4,328 30 82 0 77 0 21 Other 88,,888800 1,036 8,432 731 128 71 296 234 22. Total loans, gross 310,346 58,128 193,895 46,499 57,765 6,754 33,567 2,058 23 Less: Unearned income on loans 158 27 107 26 36 1 7 0 24 Equals: Loans, net 310,187 58,102 193,788 46,473 57,729 6,753 33,560 2,058 Total loans, gross, by category 7,5 Real estate loans 54,264 543 2288,,002277 308 1177,,110055 118822 55,,334466 5533 26 Loans to depository institutions 49,802 33,192 38,081 25,479 6,177 4,659 3,240 1,456 27 Commercial banks in United States (including IBFs) 26,015 12,854 19,131 9,066 4,380 2,904 2,126 790 28 U.S. branches and agencies of other foreign banks ... 22,557 11,830 16,708 8,253 4,090 2,727 1,469 757 29 Other commercial banks in United States 3,458 1,024 2,422 813 290 178 657 33 30 Other depository institutions in United States (including IBFs) 32 0 25 0 7 00 0 00 31 Banks in foreign countries 23,755 20,338 18,926 16,413 1,790 1,755 1,114 666 37 Foreign branches of U.S. banks 649 442 516 311 114 114 18 18 33 Other banks in foreign countries 23,106 19,896 18,409 16,102 1,676 1,641 1,0% 649 34 Other financial institutions 15,376 790 12,895 691 911 52 1,250 36 35 Commercial and industrial loans 166,213 14,242 92,894 11,817 32,769 1,604 23,114 391 36 U.S. addressees (domicile) 144,376 454 75,963 314 30,202 117 22,479 14 37 Non-U.S. addressees (domicile) 21,837 13,788 16,931 11,503 2,566 1,488 635 378 38 Acceptances of other banks 1,395 38 868 37 229 0 195 0 39 U.S. banks 436 19 256 19 125 0 2 0 40 Foreign banks 959 19 612 18 104 0 194 0 41 Loans to foreign governments and official institutions (including foreign central banks) 10,459 9,196 8,952 8,086 426 225555 112222 112211 42 Loans for purchasing or carrying securities (secured and unsecured) 8,906 2 88,,886655 2 3377 00 3 00 43 All other loans 3,931 124 3,313 81 111 0 297 0 44 All other assets 55,059 11,074 42,202 9,928 6,980 737 4,680 335 45 Customers' liability on acceptances outstanding 22,054 n.a. 15,610 n.a. 4,703 n.a. 1,130 n.a. 46 U.S. addressees (domicile) 14,933 n.a. 9,667 n.a. 3,989 n.a. 1,041 n.a. 47 Non-U.S. addressees (domicile) 7,121 n.a. 5,944 n.a. 714 n.a. 88 n.a. 48 Other assets including other claims on nonrelated parties 33,005 11,074 26,592 9,928 2,277 737 3,551 335 49 Net due from related depository institutions' 88,697 86,236 72,487 56,865 6,684 20,271 342 4,081 50 Net due from head office and other related depository institutions5 88,697 n.a. 72,487 n.a. 6,684 n.a. 342 n.a. 51 Net due from establishing entity, head offices, and other related depository institutions n.a. 86,236 n.a. 56,865 n.a. 2200,,227711 n.a. 44,,008811 52 Total liabilities4 704,506 307,639 523,665 237,601 88,752 41,383 54,155 19,785 53 Liabilities to nonrelated parties 604,198 265,462 472,895 205,997 77,811 39,942 33,528 11,707 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies All 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 c T B l o u F t d a ' i s l n g I o B n F ly 's ex I c T B l o u F t d a ' i s l n g I o B n F ly 's ex I c T B l o u F t d a ' i s l n g 54 Total deposits and credit balances 145,183 190,703 122,6% 168,050 4,480 12,854 9,062 55 Individuals, partnerships, and corporations 99,892 16,297 80,399 9,938 3,946 765 7,901 56 U.S. addressees (domicile) 83,888 485 70,834 485 1,901 0 6,759 57 Non-U.S. addressees (domicile) 16,004 15,812 9,565 9,453 2,045 765 1,143 58 Commercial banks in United States (including IBFs). 31,243 60,687 29,195 54,742 249 4,291 887 59 U.S. branches and agencies of other foreign banks 10,550 54,024 10,153 48,822 83 3,8% 224 60 Other commercial banks in United States 20,694 6,663 19,042 5,920 166 395 663 61 Banks in foreign countries 5,774 96,848 5,440 87,888 5 6,785 212 62 Foreign branches of U.S. banks 1,899 7,888 1,689 6,367 0 1,191 210 63 Other banks in foreign countries 3,875 88,960 3,751 81,521 5 5,594 2 64 Foreign governments and official institutions (including foreign central banks) 2,038 16,661 1,693 15,293 221 1,013 54 65 All other deposits and credit balances 5,853 210 5,646 190 32 0 1 66 Certified and official checks 383 322 26 7 67 Transaction accounts and credit balances (excluding IBFs) 7,893 6,397 460 306 68 Individuals, partnerships, and corporations 6,046 4,789 392 295 69 U.S. addressees (domicile) 4,561 3,797 353 289 70 Non-U .S. addressees (domicile) 1,485 992 39 6 71 Commercial banks in United States (including IBFs). 110 101 3 0 72 U.S. branches and agencies of other foreign banks 28 25 2 0 73 Other commercial banks in United States 81 76 1 0 74 Banks in foreign countries 901 808 5 2 75 Foreign branches of U.S. banks 5 5 0 0 76 Other banks in foreign countries 897 803 5 2 77 Foreign governments and official institutions (including foreign central banks) 296 260 78 All other deposits and credit balances 158 117 79 Certified and official checks 383 322 80 Demand deposits (included in transaction accounts and credit balances) 7,109 6,071 231 291 81 Individuals, partnerships, and corporations 5,504 4,661 197 280 82 U.S. addressees (domicile) 4,256 3,744 170 275 83 Non-U.S. addressees (domicile) 1,248 917 27 5 84 Commercial banks in United States (including IBF)s. 91 85 1 0 85 U.S. branches and agencies of other foreign banks 25 24 0 0 86 Other commercial banks in United States 65 61 1 0 87 Banks in foreign countries 782 6% 5 2 88 Foreign branches of U.S. banks 5 5 0 0 89 Other banks in foreign countries 777 691 5 2 90 Foreign governments and official institutions (including foreign central banks) 248 213 2 1 91 All other deposits and credit balances 102 94 0 0 92 Certified and official checks 383 322 26 7 93 Non-transaction accounts (including MMDAs, excluding IBFs) 137,289 116,299 4,020 8,756 94 Individuals, partnerships, and corporations 93,846 75,611 3,554 7,606 95 U.S. addressees (domicile) 79,327 67,037 1,547 6,469 96 Non-U.S. addressees (domicile) 14,519 8,573 2,006 1,137 97 Commercial banks in United States (including IBFs). 31,134 29,094 247 886 98 U.S. branches and agencies of other foreign banks 10,522 10,128 82 224 99 Other commercial banks in United States 20,612 18,966 165 663 100 Banks in foreign countries 4,873 4,632 0 210 101 Foreign branches of U.S. banks 1,894 1,684 0 210 102 Other banks in foreign countries 2,979 2,948 0 0 103 Foreign governments and official institutions (including foreign central banks) 1,742 1,432 219 53 104 All other deposits and credit balances 5,695 5,529 0 0 105 IBF deposit liabilities 190,703 168,050 12,854 106 Individuals, partnerships, and corporations 16,297 9,938 765 107 U.S. addressees (domicile) 485 485 0 108 Non-U.S. addressees (domicile) 15,812 9,453 765 109 Commercial banks in United States (including IBFs). 60,687 54,742 4,291 110 U.S. branches and agencies of other foreign banks 54,024 48,822 3,8% 111 Other commercial banks in United States 6,663 5,920 395 112 Banks in foreign countries 96,848 87,888 6,785 113 Foreign branches of U.S. banks 7,888 6,367 1,191 114 Other banks in foreign countries 88,960 81,521 5,594 115 Foreign governments and official institutions (including foreign central banks) 16,661 15,293 1,013 116 All other deposits and credit balances 210 190 0 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • May 1992 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 19911—Continued 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 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 117 Federal funds purchased and securities sold under agreements to repurchase 81,527 9,482 65,945 6,203 9,308 1,395 5,632 1,847 MX U.S. branches and agencies of other foreign banks 14,254 3,056 9,656 925 2,676 771 1,795 1,355 119 Other commercial banks in United States 22,886 379 15,546 223 4,675 151 2,371 J 170 Other 44,386 6,048 40,744 5,055 1,957 473 1,466 487 121 Other borrowed money 132,475 55,406 74,263 22,904 44,271 24,890 11,730 6,949 122 Owed to nonrelated commercial banks in United States (including IBFs) 54,446 22,836 23,214 4,957 24,252 14,802 5,469 2,781 123 Owed to U.S. offices of nonrelated U.S. banks 19,181 2,660 10,368 642 6,051 1,514 2,338 466 124 Owed to U.S. branches and agencies of nonrelated foreign banks 35,265 20,176 12,846 4,316 18,201 13,289 3,131 2,315 125 Owed to nonrelated banks in foreign countries 31,583 29,801 16,613 15,443 10,480 9,897 4,093 4,093 126 Owed to foreign branches of nonrelated U.S. banks ... 2,950 2,883 570 524 2,006 2,006 352 352 127 Owed to foreign offices of nonrelated foreign banks 28,633 26,919 16,043 14,919 8,474 7,890 3,742 3,742 128 Owed to others 46,446 2,769 34,437 2,503 9,538 191 2,168 75 129 All other liabilities 54,311 9,871 41,941 8,840 6,899 803 4,368 175 130 Branch or agency liability on acceptances executed and outstanding 24,248 n.a. 17,832 n.a . 4,756 n.a. 834 n.a. 131 Other liabilities to nonrelated parties 30,063 9,871 24,109 8,840 2,143 803 3,534 175 132 Net due to related depository institutions' 100,308 42,177 50,769 31,604 10,941 1,441 20,627 8,078 133 Net due to head office and other related depository institutions 100,308 n.a . 50,769 n.a. 10,941 n.a. 20,627 n.a . 134 Net due to establishing entity, head office, and other related depository institutions n.a. 42,177 n.a. 31,604 n.a. 1,441 n.a. 8,078 MEMO 135 Non-interest bearing balances with commercial banks in United States 2,024 0 1,769 0 93 0 87 0 136 Holding of commercial paper included in total loans 1,708 1,539 117 40 137 Holding of own acceptances included in commercial and industrial loans 2,672 1,918 534 3322 138 Commercial and industrial loans with remaining maturity of one year or less 95,825 51,369 19,933 13,897 139 Predetermined interest rates 59,572 n.a. 30,391 n.a. 12,885 n a. 9,924 n a. 140 Floating interest rates 36,252 20,978 7,048 3,973 141 Commercial and industrial loans with remaining maturity of more than one year 70,389 41,525 12,836 9,217 142 Predetermined interest rates 22,033 11,566 4,129 4,299 143 Floating interest rates 48,356 29,959 8,706 4,919 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A79 4.30—Continued Millions of dollars All states New York California Illinois IItteemm Total Total Total Total exc I l B u F d s in g I o B n F ly s exc I l B u F d s in g I o B n F ly s exc I l B u F d s in g I o B n F ly s exc I l B u F d s in g I o B n F ly s 111144444444 CCCCoooommmmppppoooonnnneeeennnnttttssss ooooffff ttttoooottttaaaallll nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnn aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ttttoooottttaaaallll ddddeeeeppppoooossssiiiittttssss aaaannnndddd ccccrrrreeeeddddiiiitttt bbbbaaaallllaaaannnncccceeeessss ooooffff nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnnaaaallll aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddiiiinnnngggg IIIIBBBBFFFFssss 145,183 n.a. 125,216 n.a. 4,445 n.a. 8,691 n.a. 111144445555 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 104,399 n.a. 88,617 n.a. 2,549 n.a. 6,951 n.a. 111144446666 OOOOtttthhhheeeerrrr ttttiiiimmmmeeee ddddeeeeppppoooossssiiiittttssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 26,026 n.a. 23,044 n.a. 1,171 n.a. 1,473 n.a. 111144447777 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee wwwwiiiitttthhhh rrrreeeemmmmaaaaiiiinnnniiiinnnngggg mmmmaaaattttuuuurrrriiiittttyyyy ooooffff mmmmoooorrrreeee tttthhhhaaaannnn 11112222 mmmmoooonnnntttthhhhssss ........ 14,758 n.a. 13,556 n.a. 725 n.a. 267 n.a. All states2 New York California Illinois in T c I l B o u t F d a s i l n g I o B n F ly s in T c 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 t F d a s i l n g I o B n F ly s 111144448888 MMMMaaaarrrrkkkkeeeetttt vvvvaaaalllluuuueeee ooooffff sssseeeeccccuuuurrrriiiittttiiiieeeessss hhhheeeelllldddd 67,330 15,367 61,659 14,101 3,672 795 1,611 414 111144449999 IIIImmmmmmmmeeeeddddiiiiaaaatttteeeellllyyyy aaaavvvvaaaaiiiillllaaaabbbblllleeee ffffuuuunnnnddddssss wwwwiiiitttthhhh aaaa mmmmaaaattttuuuurrrriiiittttyyyy ggggrrrreeeeaaaatttteeeerrrr tttthhhhaaaannnn oooonnnneeee ddddaaaayyyy iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ooootttthhhheeeerrrr bbbboooorrrrrrrroooowwwweeeedddd mmmmoooonnnneeeeyyyy 81,132 n.a. 40,648 n.a. 31,024 n.a. 7,771 n.a. 111155550000 NNNNuuuummmmbbbbeeeerrrr ooooffff rrrreeeeppppoooorrrrttttssss ffffiiiilllleeeedddd6666 581 0 271 0 134 0 53 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

Special Tables A81 4.33 ASSETS AND LIABILITIES Life Insurance Companies Millions of dollars 1990 1991 AAccccoouunntt Q1 Q2 Q3 Q4 Q1 Q2 Q3 Life insurance companies2 1 Assets 1,328,139 1,374,827 1,384,712 1,408,208 1,505,318 1,538,731 Securities 2 Government 189,818 196,320 204,511 210,846 241,289 252,888 3 United States' 164,986 169,595 177,946 183,919 210,685 221,138 4 State and local 8,699 9,717 9,949 9,546 11,329 11,909 5 Foreign2 16,133 17,008 16,616 17,381 19,275 19,841 6 Business 669,561 698,310 699,330 711,081 n.a. 771,650 786,769 7 Bonds 546,379 563,518 578,160 582,597 627,396 635,336 8 Stocks 123,182 134,792 121,170 128,484 144,254 151,433 9 Mortgages 260,829 265,959 267,704 270,109 271,674 270,094 10 Real estate 41,049 43,513 43,531 43,367 45,934 47,164 11 Policy loans 61,368 63,665 61,422 62,603 65,391 66,671 12 Other assets 105,514 107,060 108,214 110,202 109,380 115,145 1. Data are no longer available on a monthly basis for life insurance companies. insurance companies in the United States. Annual figures are annual-statement 2. Direct and guaranteed obligations. Excludes federal agency issues not asset values, with bonds carried on an amortized basis and stocks at year-end guaranteed, which are included as "Business" securities. market value. Adjustments for interest due and accrued and for differences 3. Issues of foreign governments and their subdivisions and bonds of the between market and book values are not made on each item separately but are International Bank for Reconstruction and Development. included, in total, in "Other assets." Source. Estimates by the American Council of Life Insurance for all life Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

82 Index to Statistical Tables References are to pages A3-A81 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, 26,81 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 Discount rates at Reserve Banks and at foreign central banks and BANKERS acceptances, 10, 23, 24 foreign countries (See Interest rates) Bankers balances, 19-21, 80-83. (See also Foreigners) Discounts and advances by Reserve Banks (See Loans) Bonds (See also U.S. government securities) Dividends, corporate, 33 New issues, 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 Federal agency obligations, 5, 10, 11, 12, 29, 30 CAPACITY utilization, 46 Federal credit agencies, 31 Capital accounts Federal finance Banks, by classes, 19, 71, 73, 75 Debt subject to statutory limitation, and types and ownership Federal Reserve Banks, 11 of gross debt, 28 Central banks, discount rates, 67 Receipts and outlays, 26, 27 Certificates of deposit, 24 Treasury financing of surplus, or deficit, 26 Commercial and industrial loans Treasury operating balance, 26 Commercial banks, 17, 20, 70, 72, 74 Federal Financing Bank, 26, 31 Weekly reporting banks, 20-22 Federal funds, 7, 18, 20, 21, 22, 24, 26 Commercial banks Federal Home Loan Banks, 31 Assets and liabilities, 19-21 Federal Home Loan Mortgage Corporation, 31, 35, 36 Commercial and industrial loans, 17, 19, 20, 21, 22 Federal Housing Administration, 31, 35, 36 Consumer loans held, by type and terms, 37, 38, 70, 72, Federal Land Banks, 36 74, 76-79 Federal National Mortgage Association, 31, 35, 36 Loans sold outright, 20 Federal Reserve Banks Nondeposit funds, 18 Condition statement, 11 Number by classes, 71, 73, 75 Discount rates (See Interest rates) Real estate mortgages held, by holder and property, 36 U.S. government securities held, 5,11, 12,28 Time and savings deposits, 4 Federal Reserve credit, 5, 6,11,12 Commercial paper, 23, 24, 34 Federal Reserve notes, 11 Condition statements (See Assets and liabilities) 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 How 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, 76-79 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

83 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 domestic 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, 81 SAVING Interest rates Flow of funds, 39,41, 42,43 Bonds, 24 National income accounts, 51 Consumer installment credit, 38 Savings and loan associations, 36, 37, 39. (See also SAIF-insured Federal Reserve Banks, 8 institutions) Foreign central banks and foreign countries, 67 Savings Association Insurance Funds (SAIF) insured institutions, 26 Money and capital markets, 24 Savings banks, 26, 36, 37 Mortgages, 35 Savings deposits (See Time and savings deposits) Prime rate, 23 Securities (See also specific types) International capital transactions of United States, 53-67 Federal and federally sponsored credit agencies, 31 International organizations, 57, 58, 60,63, 64 Foreign transactions, 65 Inventories, 51 Life insurance companies, 81 Investment companies, issues and assets, 33 New issues, 32 Investments (See also specific types) Prices, 25 Banks, by classes, 19, 20, 21, 22, 26 Special drawing rights, 5, 11, 53, 54 Commercial banks, 4, 17, 19-21, 72 State and local governments Federal Reserve Banks, 11, 12 Deposits, 20, 21 Financial institutions, 36 Holdings of U.S. government securities, 28 New security issues, 32 LABOR force, 45 Ownership of securities issued by, 20, 21 Life insurance companies (See Insurance companies) Rates on securities, 24 Loans (See also specific types) Stock market, selected statistics, 25 Banks, by classes, 19—21 Stocks (See also Securities) Commercial banks, 4, 17, 19-21,70, 72, 74 New issues, 32 Federal Reserve Banks, 5, 6, 8, 11, 12 Prices, 25 Financial institutions, 26, 36 Student Loan Marketing Association, 31 Insured or guaranteed by United States, 35, 36 TAX receipts, federal, 27 MANUFACTURING Thrift institutions, 4. (See also Credit unions and Savings and Capacity utilization, 46 loan associations) Production, 46, 48 Time and savings deposits, 4, 14, 18, 19, 20, 21, 22, 71, 73, 75 Margin requirements, 25 Trade, foreign, 54 Member banks (See also Depository institutions) Treasury cash, Treasury currency, 5 Federal funds and repurchase agreements, 7 Treasury deposits, 5, 11, 26 Reserve requirements, 9 Treasury operating balance, 26 Mining production, 48 UNEMPLOYMENT, 45 Mobile homes shipped, 49 Monetary and credit aggregates, 4,13 U.S. government balances Money and capital market rates, 24 Commercial bank holdings, 19, 20, 21 Money stock measures and components, 4, 14 Treasury deposits at Reserve Banks, 5, 11, 26 Mortgages (See Real estate loans) U.S. government securities Mutual funds, 33 Bank holdings, 19-21, 22, 28 Dealer transactions, positions, and financing, 30 Mutual savings banks (See Thrift institutions) Federal Reserve Bank holdings, 5, 11, 12, 28 Foreign and international holdings and transactions, 11, 28, NATIONAL defense outlays, 27 66 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

84 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 LYNN S. FOX, Special Assistant to the Board DAVID H. HOWARD, Senior Adviser WINTHROP P. HAMBLEY, Special Assistant to the Board DONALD B. ADAMS, Assistant Director BOB STAHLY MOORE, Special Assistant to the Board PETER HOOPER III, Assistant Director DIANE E. WERNEKE, Special Assistant to the Board KAREN H. JOHNSON, Assistant Director RALPH W. SMITH, JR., Assistant Director LEGAL DIVISION J. VIRGIL MATTINGLY, JR., General Counsel DIVISION OF RESEARCH AND STATISTICS SCOTT G. ALVAREZ, Associate General Counsel MICHAEL J. PRELL, Director RICHARD M. ASHTON, Associate General Counsel EDWARD C. ETTIN, Deputy Director OLIVER IRELAND, Associate General Counsel WILLIAM R. JONES, Associate Director KATHLEEN M. O'DAY, Assistant General Counsel THOMAS D. SIMPSON, Associate Director MARYELLEN A. BROWN, Assistant to the General Counsel LAWRENCE SLIFMAN, Associate Director DAVID J. STOCKTON, Associate Director OFFICE OF THE SECRETARY MARTHA BETHEA, Deputy Associate Director WILLIAM W. WILES, Secretary PETER A. TINSLEY, Deputy Associate Director JENNIFER J. JOHNSON, Associate Secretary MYRON L. KWAST, Assistant Director BARBARA R. LOWREY, Associate Secretary PATRICK M. PARKINSON, Assistant Director RICHARD C. STEVENS, Assistant Secretary1 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 (Administration ) GRIFFITH L. GARWOOD, Director GLENN E. LONEY, Assistant Director DIVISION OF MONETARY AFFAIRS ELLEN MALAND, Assistant Director 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 OFFICE OF THE INSPECTOR GENERAL DON E. KLINE, Associate Director 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

85 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 DAVID L. SHANNON, Director JEFFREY C. MARQUARDT, Assistant Director JOHN R. WEIS, Associate Director JOHN H. PARRISH, Assistant Director ANTHONY V. DIGIOIA, Assistant Director LOUISE L. ROSEMAN, Assistant Director JOSEPH H. HAYES, JR., Assistant Director FLORENCE M. YOUNG, Assistant Director FRED HOROWITZ, Assistant Director OFFICE OF THE CONTROLLER GEORGE E. LIVINGSTON, Controller STEPHEN J. CLARK, Assistant Controller (Programs and Budgets) DARRELL R. PAULEY, Assistant Controller (Finance) DIVISION OF SUPPORT SERVICES ROBERT E. FRAZIER, Director GEORGE M. LOPEZ, Assistant Director DAVID L. WILLIAMS, Assistant Director 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

86 Federal Reserve Bulletin • May 1992 Federal Open Market Committee and Advisory Councils FEDERAL OPEN MARKET COMMITTEE MEMBERS ALAN GREENSPAN, Chairman E. GERALD CORRIGAN, Vice Chairman WAYNE D. ANGELL JOHN P. LAWARE DAVID W. MULLINS, JR. THOMAS H. HOENIG LAWRENCE B. LINDSEY SUSAN M. PHILLIPS JERRY L. JORDAN 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 JOHN M. DAVIS, Associate Economist NORMAND R.V. BERNARD, Deputy Secretary RICHARD G. DAVIS, Associate Economist JOSEPH R. COYNE, Assistant Secretary THOMAS E. DAVIS, Associate Economist GARY P. GILLUM, Assistant Secretary DAVID E. LINDSEY, Associate Economist J. VIRGIL MATTINGLY, JR., General Counsel ALICIA H. MUNNELL, Associate Economist ERNEST T. PATRIKIS, Deputy General Counsel LARRY J. PROMISEL, Associate Economist MICHAEL J. PRELL, Economist CHARLES J. SIEGMAN, Associate Economist EDWIN M. TRUMAN, Economist THOMAS D. SIMPSON, Associate Economist ANATOL B. BALBACH, Associate Economist DAVID J. STOCKTON, 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 RONALD G. STEINHART, President TERRENCE A. LARSEN, Vice President 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

87 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 MULUGETTA 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

88 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 MULTI- ANNUAL REPORT: BUDGET REVIEW, 1990-91. COUNTRY MODEL, May 1984. 590 pp. $14.50 each. FEDERAL RESERVE BULLETIN. Monthly. $25.00 per year or $2.50 each in the United States, its possessions, Canada, WELCOME TO THE FEDERAL RESERVE. March 1989.14 pp. and Mexico. Elsewhere, $35.00 per year or $3.00 each. INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. 440 pp. $9.00 each. ANNUAL STATISTICAL DIGEST 1974-78. 1980. 305 pp. $10.00 per copy. FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. December 1986. 264 pp. $10.00 each. 1981. 1982. 239 pp. $ 6.50 per copy. 1982. 1983. 266 pp. $ 7.50 per copy. FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALY- 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. 1987. 1988. 272 pp. $15.00 per copy. 1988. 1989. 256 pp. $25.00 per copy. CONSUMER EDUCATION PAMPHLETS 1980-89. 1991. 712 pp. $25.00 per copy. Short pamphlets suitable for classroom use. Multiple copies 1990. 1991. 196 pp. $25.00 per copy. are available without charge. SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES OF CHARTS. Weekly. $30.00 per year or $.70 each in the Consumer Handbook on Adjustable Rate Mortgages United States, its possessions, Canada, and Mexico. Else- Consumer Handbook to Credit Protection Laws where, $35.00 per year or $.80 each. A Guide to Business Credit for Women, Minorities, and Small THE FEDERAL RESERVE ACT and other statutory provisions Businesses affecting the Federal Reserve System, as amended through How to File A Consumer Credit Complaint August 1990. 646 pp. $10.00. Series on the Structure of the Federal Reserve System REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL The Board of Governors of the Federal Reserve System RESERVE SYSTEM. The Federal Open Market Committee ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— Federal Reserve Bank Board of Directors Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp. Federal Reserve Banks Vol. II (Irregular Transactions). 1969. 116 pp. Each vol- Organization and Advisory Committees ume $2.25; 10 or more of same volume to one address, A Consumer's Guide to Mortgage Lock-Ins $2.00 each. A Consumer's Guide to Mortgage Settlement Costs Introduction to Flow of Funds. 1980. 68 pp. $1.50 each; 10 or A Consumer's Guide to Mortgage Refinancing more to one address, $1.25 each. Home Mortgages: Understanding the Process and Your Right Federal Reserve Regulatory Service. Looseleaf; updated at to Fair Lending least monthly. (Requests must be prepaid.) Making Deposits: When Will Your Money Be Available? Consumer and Community Affairs Handbook. $75.00 per When Your Home is on the Line: What You Should Know year. About Home Equity Lines of Credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

89 STAFF STUDIES: Summaries Only Printed in the 160. BANKING MARKETS AND THE USE OF FINANCIAL SER- Bulletin VICES BY SMALL AND MEDIUM-SIZED BUSINESSES, by Gregory E. Elliehausen and John D. Wolken. September Studies and papers on economic and financial subjects that are 1990. 35 pp. of general interest. Requests to obtain single copies of the full text or to be added to the mailing list for the series may be sent 161. A REVIEW OF CORPORATE RESTRUCTURING ACTIVITY, 1980-90, by Margaret Hastings Pickering. May 1991. to Publications Services. 21pp. 162. EVIDENCE ON THE SIZE OF BANKING MARKETS FROM Staff Studies 1-145 are out of print. MORTGAGE LOAN RATES IN TWENTY CITIES, by Stephen A. Rhoades. February 1992. 11 pp. 146. THE ROLE OF THE PRIME RATE IN THE PRICING OF 163. CLEARANCE AND SETTLEMENT IN U.S. SECURITIES MAR- BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84, by KETS, by Patrick Parkinson, Adam Gilbert, Emily Gollob, Thomas F. Brady. November 1985. 25 pp. Lauren Hargraves, Richard Mead, Jeff Stehm, and Mary 147. REVISIONS IN THE MONETARY SERVICES (DIVISIA) IN- Ann Taylor. March 1992. 37 pp. DEXES OF THE MONETARY AGGREGATES, by Helen T. Farr and Deborah Johnson. December 1985. 42 pp. 148. THE MACROECONOMIC AND SECTORAL EFFECTS OF THE REPRINTS OF SELECTED Bulletin ARTICLES ECONOMIC RECOVERY TAX ACT: SOME SIMULATION Some Bulletin articles are reprinted. The articles listed below RESULTS, by Flint Brayton and Peter B. Clark. December are those for which reprints are available. Most of the articles 1985. 17 pp. reprinted do not exceed twelve pages. 149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS IN BANKING BEFORE AND AFTER ACQUISITION, by Stephen Limit of ten copies A. Rhoades. April 1986. 32 pp. 150. STATISTICAL COST ACCOUNTING MODELS IN BANKING: Recent Developments in the Bankers Acceptance Market. 1/86. A REEXAMINATION AND AN APPLICATION, by John T. The Use of Cash and Transaction Accounts by American Rose and John D. Wolken. May 1986. 13 pp. Families. 2/86. 151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT PRICING Financial Characteristics of High-Income Families. 3/86. FROM 1983 THROUGH 1985, by Patrick I. Mahoney, Alice Prices, Profit Margins, and Exchange Rates. 6/86. P. White, Paul F. O'Brien, and Mary M. McLaughlin. Agricultural Banks under Stress. 7/86. January 1987. 30 pp. Foreign Lending by Banks: A Guide to International and U.S. 152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A Statistics. 10/86. REVIEW OF THE LITERATURE, by Mark J. Warshawsky. Recent Developments in Corporate Finance. 11/86. April 1987. 18 pp. Measuring the Foreign-Exchange Value of the Dollar. 6/87. 153. STOCK MARKET VOLATILITY, by Carolyn D. Davis and Changes in Consumer Installment Debt: Evidence from the Alice P. White. September 1987. 14 pp. 1983 and 1986 Surveys of Consumer Finances. 10/87. 154. THE EFFECTS ON CONSUMERS AND CREDITORS OF Home Equity Lines of Credit. 6/88. PROPOSED CEILINGS ON CREDIT CARD INTEREST RATES, Mutual Recognition: Integration of the Financial Sector in the by Glenn B. Canner and James T. Fergus. October 1987. European Community. 9/89. 26 pp. The Activities of Japanese Banks in the United Kingdom and in 155. THE FUNDING OF PRIVATE PENSION PLANS, by Mark J. the United States, 1980-88. 2/90. Warshawsky. November 1987. 25 pp. Industrial Production: 1989 Developments and Historical 156. INTERNATIONAL TRENDS FOR U.S. BANKS AND BANKING Revision. 4/90. MARKETS, by James V. Houpt. May 1988. 47 pp. Recent Developments in Industrial Capacity and Utilization. 157. M2 PER UNIT OF POTENTIAL GNP AS AN ANCHOR FOR 6/90. THE PRICE LEVEL, by Jeffrey J. Hallman, Richard D. Developments Affecting the Profitability of Commercial Banks. Porter, and David H. Small. April 1989. 28 pp. 7/90. 158. THE ADEQUACY AND CONSISTENCY OF MARGIN REQUIRE- Recent Developments in Corporate Finance. 8/90. MENTS IN THE MARKETS FOR STOCKS AND DERIVATIVE U.S. Exchange Rate Policy: Bretton Woods to Present. 11/90. PRODUCTS, by Mark J. Warshawsky with the assistance of The Transmission Channels of Monetary Policy: How Have Dietrich Earnhart. September 1989. 23 pp. They Changed? 12/90. 159. NEW DATA ON THE PERFORMANCE OF NONBANK SUBSID- U.S. International Transactions in 1990. 5/91. IARIES OF BANK HOLDING COMPANIES, by Nellie Liang Changes in Family Finances from 1983 to 1989: Evidence from and Donald Savage. February 1990. 12 pp. the Survey of Consumer Finances. 1/92. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

90 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 Jerry L. Jordan 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 Walter A. Varvel1 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. Curry III Nashville 37203 Harold A. Black Melvyn K. Purcell New Orleans 70161 Victor Bussie Robert J. Musso CHICAGO* 60690 Richard G. Cline Silas Keehn Robert M. Healey Daniel M. Doyle Detroit 48231 J. Michael Moore Roby L. Sloan1 ST. LOUIS 63166 H. Edwin Trusheim Thomas C. Melzer Robert H. Quenon James R. Bowen Little Rock 72203 James R. Rodgers Karl W. Ashman Louisville 40232 Daniel L. Ash Howard Wells Memphis 38101 Seymour B. Johnson Ray Laurence MINNEAPOLIS 55480 Delbert W. Johnson Gary H. Stern Gerald A. Rauenhorst Thomas E. Gainor Helena 59601 J. Frank Gardner John D. Johnson KANSAS CITY 64198 Burton A. Dole, Jr. Thomas M. Hoenig Herman Cain Henry R. Czerwinski Denver 80217 Barbara B. Grogan 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 Alvin T. Johnson Sammie C.Clay Houston 77252 Judy Ley Allen Robert Smith, III1 San Antonio 78295 Roger R. Hemminghaus Thomas H. Robertson SAN FRANCISCO 94120 James A. Vohs Robert T. Parry Robert F. Erburu Patrick K. Barron Los Angeles 90051 Walfred J. Fassler 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. Gordon Werkema1 •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

91 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 Brancli * Federal Reserve Branch Cities Territories • Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Statistical Releases Available on the Commerce Department's Economic Bulletin Board The Board of Governors of the Federal Reserve scription. For further information regarding a System makes some of its statistical releases avail- subscription to the economic bulletin board, able to the public through the U.S. Department of please call 202-377-1986. The releases transmitted Commerce's economic bulletin board. Computer to the economic bulletin board, on a regular basis, access to the releases can be obtained by sub- are the following: Reference Number Statistical release Frequency of release H.3 Aggregate Reserves Weekly/Thursday H.4.1 Factors Affecting Reserve Balances Weekly/Thursday H.6 Money Stock Weekly/Thursday H.8 Assets and Liabilities of Insured Domestically Chartered Weekly/Monday and Foreign Related Banking Institutions H.10 Foreign Exchange Rates Weekly/Monday H.15 Selected Interest Rates Weekly/Monday G.5 Foreign Exchange Rates Monthly/end of month G.17 Industrial Production and Capacity Utilization Monthly/midmonth G.19 Consumer Installment Credit Monthly/fifth business day Z.7 Flow of Funds Quarterly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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