Federal Reserve Bulletin, 1992-06

VOLUME 78 • NUMBER 6 • JUNE 1992 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C. PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood • Donald L. Kohn • J. Virgil Mattingly, Jr. • Michael J. Prell • Edwin M. Truman The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Section headed by S. Ellen Dykes, the Graphics Center under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Table of Contents 403 AN ANALYSIS OF POTENTIAL TREASURY 425 Peter D. Stemlight, Executive Vice President, AUCTION TECHNIQUES Federal Reserve Bank of New York, testifies on matters related to the U.S. government By reviewing the academic literature on aucsecurities market, focusing on automating tions, this article puts current Treasury prac- Treasury auctions, and says that additional tice and a popular proposal for reform in critilegislation is not needed to ensure that public cal perspective. It also examines an alternative confidence in the auction process is not imscheme that uses technology to give better paired, before the Subcommittee on Domestic protection against certain kinds of manipula- Monetary Policy of the House Committee on tive behavior and that has a potential for low- Banking, Finance and Urban Affairs, April 28, ering borrowing costs. 1992. 414 INDUSTRIAL PRODUCTION AND 428 ANNOUNCEMENTS CAPACITY UTILIZATION Interim regulation to implement Foreign Bank The index of industrial production rose Supervision Enhancement Act of 1991. 0.2 percent in March, after having increased a Revisions to the staff commentary on Regularevised 0.5 percent in February. Total industion B (Equal Credit Opportunity). trial capacity utilization rose 0.1 percentage point in March, to 78.1 percent. Interim rule to amend Regulation Y (Bank Holding Companies and Change in Bank Control). 417 STATEMENTS TO THE CONGRESS Proposed new Regulation DD to implement Alan Greenspan, Chairman, Board of Goverthe Truth in Savings Act. nors, discusses recent stock market developments in Japan and says that the impact on the Publication of revised Lists of Marginable United States from changes to date in Japa- OTC Stocks and of Foreign Margin Stocks. nese stock prices is likely to be limited, before Changes in Board staff. the Senate Committee on Banking, Housing, and Urban Affairs, April 17, 1992. 431 RECORD OF POLICY ACTIONS OF THE 421 David W. Mullins, Jr., Vice Chairman, Board FEDERAL OPEN MARKET COMMITTEE of Governors, presents the views of the Board on proposed legislation concerning the gov- At its meeting on February 4-5, 1992, the ernment securities market and says that sub- Committee established ranges for growth of stantial progress has been made in exploring, M2 and M3 of 2Vi to 6V2 percent and 1 to identifying, and implementing approaches to 5 percent respectively, measured from the improve Treasury auctions and that this pro- fourth quarter of 1991 to the fourth quarter of cess should be allowed to run its course before 1992. The monitoring range for growth of the Congress turns to legislative approaches to total domestic nonfinancial debt was set at reform, before the Subcommittee on Domestic 41/2 to 8V2 percent for the year. In carrying out Monetary Policy of the House Committee on policy, the Committee indicated that it would Banking, Finance and Urban Affairs, April 28, continue to evaluate the behavior of the mone- 1992. tary aggregates in the light of progress toward Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

price level stability, movements in their A1 FINANCIAL AND BUSINESS STATISTICS velocities, and developments in the economy These tables reflect data available as of and financial markets. April 28, 1992. With regard to the implementation of policy for the period immediately ahead, the A3 GUIDE TO TABULAR PRESENTATION Committee adopted a directive that called for maintaining the existing degree of pressure A4 Domestic Financial Statistics on reserve positions but that included a bias A44 Domestic Nonfinancial Statistics toward possible easing during the intermeet- A53 International Statistics ing period. Accordingly, the directive indicated that in the context of the Committee's A69 GUIDE TO STATISTICAL RELEASES AND long-run objectives for price stability and SPECIAL TABLES sustainable economic growth, and giving A70 INDEX TO STATISTICAL TABLES careful consideration to economic, financial, and monetary developments, slightly greater A72 BOARD OF GOVERNORS AND STAFF reserve restraint might be acceptable or slightly lesser reserve restraint would be A74 FEDERAL OPEN MARKET COMMITTEE acceptable during the intermeeting period. AND STAFF; ADVISORY COUNCILS The reserve conditions contemplated at this meeting were expected to be consistent with A76 FEDERAL RESERVE BOARD growth of M2 and M3 at annual rates of PUBLICATIONS around 3 percent and IV2 percent respectively over the three-month period from December A78 SCHEDULE OF RELEASE DATES FOR through March. PERIODIC RELEASES A80 MAPS OF THE FEDERAL RESERVE 441 LEGAL DEVELOPMENTS SYSTEM Various bank holding company, bank service corporation, and bank merger orders; and A82 FEDERAL RESERVE BANKS, BRANCHES, pending cases. AND OFFICES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

An Analysis of Potential Treasury Auction Techniques Vincent Reinhart, of the Board's Division of Mone- BACKGROUND ON BIDDING tary Affairs, prepared this article. There is a large academic literature on auctions, Last summer's revelation of abuses of the rules with important early contributions by William governing the primary market for government secu- Vickrey and Milton Friedman and significant later rities spurred a comprehensive review of all aspects work by Paul Milgrom, among others (see the of market activity. Some of that work appeared in references at the end of the article). This research the Joint Report on the Government Securities has classified the types of auctions, rigorously mod- Market, which the U.S. Department of the Trea- eled the bidding strategies, and ranked auctions by sury, the U.S. Securities and Exchange Commis- various criteria regarding efficiency. Unfortunately, sion, and the Board of Governors of the Federal this literature has a language all its own that differs Reserve System transmitted to the Congress in from the terms that the financial press uses. To January 1992. While the Joint Report addressed avoid confusion, this article will use explicit, if many issues, its advocacy of experimentation with somewhat unwieldy, names for each auction. alternative auction designs for selling Treasury William Vickrey established the basic taxonomy securities in particular attracted considerable atten- of auctions by classifying them based on the order tion. This attention likely owed to the sizable in which prices are quoted and the way in which stakes. With the outstanding federal debt totaling bids are entered.1 First, securities can be awarded $2.8 trillion and mounting with each year's fiscal at prices that are progressively lowered until the deficit, the gain to the Treasury from even a modest entire issue is sold; alternatively, the auctioneer can improvement in selling technique could be substan- arrange the bids in ascending order by their price tial. In fiscal year 1991, for example, gross issu- and decide on a single price that places the total ance by the federal government exceeded $1.7 tril- issue. By the second measure, the auction can be a lion. Given that scale of borrowing, a reduction of private affair with sealed bids opened by the aucone basis point in the average annual issuing rate at tioneer, or it can be conducted in real time, with Treasury auctions would trim more than $200 mil- participants in a single room or connected by phone lion from the federal deficit each year. At the same bidding in public. This two-by-two classification time, the Treasury must maintain the integrity of yields four auction types: the first-price sealed-bid the auction process by ensuring that no illicit activ- auction, the second-price sealed-bid auction, the ity is hidden by the sheer volume of transactions. A descending-price open-outcry auction, and the concern by investors that the market was not open ascending-price open-outcry auction. and fair would be translated into lessened demands Complicating matters, researchers after Vickrey for Treasury debt and higher costs of borrowing. further classified models by an assumption about By reviewing the academic literature on auc- the information that bidders have regarding the tions, this article puts current Treasury practice and value of the auctioned object. One such model is a popular proposal for reform in critical perspec- the private-values case, in which bidders' valuative. It also examines the alternative scheme tions are subjective decisions, independent of each embraced in the Joint Report that uses technology to give better protection against certain kinds of 1. William Vickrey, "Counterspeculation, Auctions, and Commanipulative behavior and that has a potential for petitive Sealed Tenders," Journal of Finance, vol. 16 (March lowering borrowing costs. 1961), pp. 8-37. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

404 Federal Reserve Bulletin • June 1992 other. Another is the common-values case, in which sale of one unit of good or security the award is each participant attempts to measure the value of made at the highest bid. In the figure, the horizontal the item by the same objective yardstick. The bars measure the cumulative amount of bids at the auction of a unique work of art not for resale is the given price or higher.2 Thus, participants pay differprototypical private-values model, whereas a Trea- ing prices reflecting the strength of their bids. sury auction—with each bidder guessing at the In terms of the expected return from winning the security's value at the end of the day—is an exam- auction, a high bid lowers the profit from victory ple of a common-values model. This article con- and raises the probability of winning. The strategic centrates on the common-values case, which is bidder trades between the two: He or she lowers applicable to the sale of Treasury securities, and the bid relative to valuation in order to profit more also assumes that agents care only about maximiz- from winning and accepts the risk of lowering the ing profit. probability of winning. The optimal strategy is to In general terms, the expected profit from win- shade a bid toward the perceived market consenning an auction for bidder 1, n depends on the sus; the more certain that consensus is (in terms of u expected value of the security in secondary market lower variability), the more the strategic investor trading, Vj, less the awarded price, b times the will shade his or her bid.3 u probability of winning the auction, Pr{-}. In more Another factor comes into play in the commonformal terms and using i as an index to represent values case: Since all participants guess about the the bidders in the auction, price—where the security will trade after the auction—a high bid signals a heightened probabil- Ttj = (v t - b x ) - Pr{b x > b t , for all other /}. ity of subsequent loss of profit for that bidder. In that sense, winning is losing, as entering the high- The format of the auction determines how the bid est bid signals that one's valuation exceeds that of price affects the probability of winning and the all other interested parties. This is the "winner's profit from acquiring the security, as well as what curse" and gives aggressive bidders an additional information is revealed about the security's value reason to rein in their enthusiasm. Avoiding the through the auction process. winner's curse may lead to the pooling of bids, as a group of investors is more likely to have a clearer view of the market consensus and is less likely to First-Price Sealed-Bid Auction be in the far end of the bid-price distribution. The pooling of bids is a service provided by dealers, The current practice of auctioning government who collect customer business and place largesecurities falls into the first-price sealed-bid catescale orders. gory, which in the financial community is termed an English auction (except by the English, who call it an American auction). Bidding takes place in Second-Price Sealed-Bid Auction private and, as diagram 1 shows, awards are made at the highest priced bids covering the total auction The Treasury could collect sealed bids, arrange size. It is termed a first-price auction because in the them by price, and award all the securities at a single price that just places the entire issue (dia- 1. First-price sealed-bid auction gram 2). This auction is termed second-price because, when a single unit is on the block, the price charged would be that of the highest bid below the price that places the issue, or the second-best price. The second-price auction, called a Dutch auction in 2. Treasury auctions are actually conducted in terms of yields; for convenience, I discuss them in terms of price. 3. James L. Smith, "Non-Aggressive Bidding Behavior and the 'Winner's Curse,'" Economic Inquiry, vol. 19 (July 1981), pp. 380-88. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

An Analysis of Potential Treasury Auction Techniques 405 2. Second-price sealed-bid auction 3. Descending-price open-outcry auction Price Auction size Quantity the financial press, has been proposed as a simple ipants refer to as an English auction is strategically alternative to current Treasury practice that would identical to what academics refer to as a Dutch prevent the type of abuses witnessed last year while auction. As a result, investors have the same incenlowering average borrowing costs.4 tive to pool bids and place customer orders at A second-price auction, in which the winner dealers. pays, not his or her bid, but only the second-best bid, severs the gain in winning from the probability Ascending-Price Open-Outcry Auction of winning. An aggressive bidder can receive a sure award but pay a price closer to the market The auctioneer can just as well cry out an ascendconsensus. As a result, less of the shading that ing sequence of prices to the gathered bidders, marks the response to the winner's curse should stopping the auction when enough are willing to occur. Accordingly, customers may be more willtake down the total issue. Such a price sequence is ing to place their business directly by bidding at the plotted in diagram 4 for the auction of a single auction than to go through a dealer. good or security. In keeping with the mirror imaging, academics term this an English auction.5 Descending-Price Open-Outcry Auction The auction of multiple units of a security begins as a price is called out and all interested parties This procedure is used to auction flowers in the submit their quantities demanded. The volume of Netherlands, hence it is referred to by academics as bids at that price is announced and, in successive a Dutch auction. Bidders congregate in one room, rounds, the price is raised until the volume deor plug into its electronic equivalent, and wait as manded is smaller than the issue. When that point the auctioneer calls out a sequence of decreasing prices. In an auction of one unit of a good or 5. Indeed, in the private-values model (which we do not anasecurity (diagram 3), the auction stops when one lyze), another equivalence proposition holds: What market particibidder is willing to pay the price called out. For pants refer to as a Dutch auction is strategically identical to what academics refer to as an English auction—unless there is a time multiple units, the eager bidder is awarded the limit on the bidding, in which case it is called a Scotch auction. security, and the auction continues, with the auctioneer selling the remaining securities at progres- 4. Ascending-price open-outcry auction sively lower prices. The strategic decision is identi- Price cal to that of the first-price sealed-bid auction: The optimal bidder does not want to be too aggressive and stop the auction well above the likely market consensus, but will shade his or her bid to avoid the winner's curse. In other words, what market particl i 4. Milton Friedman, "How to Sell Government Securities," Wall Street Journal, August 28, 1991. Merton Miller also has embraced this reform, as quoted in Diana B. Henrique, "Treasury's Troubled Auctions," New York Times, September 15, 1991. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

406 Federal Reserve Bulletin • June 1992 is reached, the seller knows that the price just tion format may encourage two other types of previously called out is the highest price consistent strategic behavior as well. First, a dealer may with placing the entire issue—that is, it clears the combine with a customer to corner a significant primary market. Everyone who bids at the top price portion of one auction—70 percent under the curand some fraction of the bidders at the previous rent rules. This strategy is called single-dealer corprice not in the top group receive awards at that nering. Second, a group of dealers can conspire to lower price.6 As the auctioneer calls out an increas- accomplish the same end; this strategy is called ing price list, bidders receive news that participants collusive combining. In a sealed-bid auction, to prize the security more highly than those low garner the lion's share of awards, the single stratequotes. In effect, the auctioneer's initial announce- gist or the group need make only a slightly more ments rule out low-price outcomes, revealing that aggressive bid than the other participants expect. the true market value is probably higher. This in- Indeed, the second-price auction, a popular candicreasing sequence of prices lessens the winner's date to replace the current format, may make these curse. Besides, if an investor is truly alone in strategies less expensive for the purchasers than valuing the security highly, the auction stops before they would be under current practice. The strategic the price is pushed too far up when the other purchaser could corner the issue by bidding subbidders drop out. stantially more than the market consensus but pay a price closer to the mass of the distribution that In 1961, Vickrey established that the four major marks the other bids. auction formats provide equal proceeds to the seller Clearly, single-dealer cornering and collusive when individual valuations are independent. Obvi- combining are similar. However, the informational ously, the Treasury market violates this assump- requirements and incentives for these two types of tion, as the value that bidders place on the security strategic behavior vary across auction type, and reflects an imperfect estimate of the price in subse- actions taken to combat one might make the other quent market trading—that is, bidders in a Trea- more likely. To analyze the collusive potential in sury auction care about the common value of the auctions, one must first understand the incentive security. In the common-values case, as later re- behind cornering an auction—or the way in which searchers showed, an ascending-price open-outcry one variety of squeeze can work. delivers the greatest proceeds to the seller under many circumstances.7 Essentially, in such an auction, bidders condition their behavior on the high- How a Corner Works est expected value of the security and shade their bids the least relative to the other formats. The potential for profit in a corner, or squeeze, lies in the interaction of the three main trading forums for Treasury securities: the when-issued market, THE POTENTIAL FOR PROFIT IN AUCTIONS the Treasury auction, and the secondary market. Those markets are represented by the three panels The current auction format elicits one form of of diagram 5, arrayed by time—before, at, and after strategic behavior: Because awards are priced at the auction. As the right panel shows, the price of a the bid, the participants have incentives to shade Treasury security must satisfy the ultimate holders their bids to avoid the winner's curse. As a result, of securities (pension funds, insurance companies, customers have an incentive to pool their bids with mutual funds, and the general investing public), dealers so that a combination of bids can, by a law seen as the intersection of their downwardly sloped of large numbers, be appropriately cast. The auc- demand schedule with the vertical Treasury supply schedule. Current auction procedures, however, get securi- 6. Those partial awards might go to those who were electronically timed as placing the earliest bids or to all bidders on a pro rata ties to those holders indirectly, through the intermebasis. diation of dealers. As the middle panel shows, the 7. This was shown formally by Paul Milgrom and Robert J. demand derived from current and anticipated cus- Weber, "A Theory of Auctions and Competitive Bidding," Econometrica, vol. 50 (September 1982), pp. 1089-122, theorem 11. tomer orders produces a flatter and more inward Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

An Analysis of Potential Treasury Auction Techniques 407 5. The three main markets for Treasury securities, according to time of trading During when-issued trading At the auction schedule at the auction as a result of the shading of tioned securities, but the major price action awaits bids in the attempt to avoid the winner's curse. secondary market trading. The cornerer restricts An investor can purchase the security before the the supply of the security in the secondary market auction, as long as he or she can find someone (seen as the inward shift in the vertical supply willing to sell it short. The when-issued market, schedule in the right panel), so that the price that shown in the left panel, matches those parties. clears that market is well above the auction price. Those seeking secure ownership rights trace a From there, the cornerer slowly unwinds that posidownwardly sloped demand schedule, while those tion, expanding market supply to sell at prices willing to sell what they do not yet have make up above the ultimate level determined by the final the short-sale schedule. Selling a security before owners of Treasuries. In effect, the cornerer acts as the auction involves a risk, as short sellers may not a discriminating monopolist, carefully regulating win awards at the auction to cover their open secondary market sales to earn all the revenue positions and so will have to borrow or buy the given by the area under the demand schedule. The security after the auction settles to make delivery. cornerer's cost is given by the unshaded rectangle, Accordingly, the when-issued price should clear leading to the profit given by the shaded area. above the expected auction price. Indeed, the profit from a market squeeze may The cornering of an auction is depicted in dia- come by other means. While the issue remains in gram 6. Short sales are made at a price just enough the cornerer's control during secondary trading, above the anticipated auction price to pay the sell- short sellers must borrow the security to make ers for exposing themselves to the likely risk at the delivery. That transaction is one side of a repurauction. Those sellers, however, turn out to be chase agreement in which the owner of the desirwrong about the auction for, while the market able security—the cornerer—lends it to a short consensus coalesces around bids consistent with seller in return for cash at a preferential borrowing the Demand schedule in the middle panel, one rate. In effect, by creating a demand for the issue, party comes in with bids that shift the actual sched- the cornerer can finance his or her position at a ule to Demand'. The cornerer exploits the sealed- below-market borrowing rate. bid nature of the auction: By bettering the market The when-issued market plays two important consensus, the schemer wins the bulk of the awards roles in cornering strategy. First, early trading al- (measured by the horizontal distance between the lows the market consensus to coalesce quickly and two demand schedules).8 thus provides a usually accurate forecast of the Since other parties cannot react, the Treasury auction price. By aiding in the "price discovery" receives only a modestly higher price for its auc- of the appropriate price on the security to be auctioned, the when-issued market serves in tightening the spread of bids; thus, the cornerer needs to bid only slightly higher than that consensus to be 8. A manipulator could bypass the auction by amassing a controlling position in either when-issued or secondary market trading. assured awards. Second, a group of thwarted To effect that strategy, purchase orders would have to be spread bidders—those who shorted in the when-issued across many sellers in an effort to hide the intent to corner from the market—are forced to the secondary market to general market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

408 Federal Reserve Bulletin • June 1992 6. How a corner works close their positions. Their surprising presence incentives for collusion in auctions proceeds as makes the demand schedule less price sensitive, as follows. no substitute exists for the security that they prom- Let us suppose that a few dealers, intent on ised to deliver. As a result, as long as they keep extracting profit from those not in the ring, willtheir positions open, short sellers will need to fully plan together to purchase all that is sold at an borrow the desirable security and thus provide the auction. They agree on a price just above the marcornerer favorable financing in the repurchase ket consensus that is sure to win all the awards. A market. sealed-bid auction, however, tempts each of the The successful cornerer makes use of three ele- conspirators to move just above the agreed-upon ments of the current practice: price and to steal awards; as a result, the cartel likely will not hold.9 Hence, on the one hand, • When-issued trading creates a core of reliable incentives in the classic first-price sealed-bid aucdemanders for the auctioned security (those who tion are structured so as to make collusion unlikely. sold short). On the other hand, in an ascending-price open- • The first-price method of allocating awards outcry auction, such a conniver among conspirators reduces demand at the auction and makes that has to show his or her hand, making such manipudemand more price sensitive. lation less likely. Even if bidding is secret, the • Sealed bids allow a cornerer to place bids only other members of the cartel will know by the price marginally better than the consensus to win all the movement that someone has cheated. The cartel awards. will hold. By this theoretical argument, one might surmise These characteristics of current procedures promise that the current first-price sealed-bid auction proprofit in successfully cornering a Treasury auction, tects, at least, against the willful joining of dealers although such trades are not without considerable to exploit the Treasury and other dealers. Unforturisk. Even slight shifts in the prevailing level of nately, a gap exists between models and reality, as interest rates could more than wipe out the profit the rule limiting awards to 35 percent of the issue from controlling a significant portion of an out- paradoxically turns incentives back toward collustanding issue. sion. If a conniver plays within the lines of the 35 percent rule, he or she will not win enough securities at the auction to control the secondary The Potential for Collusion market. Consequently, tough enforcement of quantity limits more strongly binds conspirators One dealer with adequate capital and the willing- together. ness to be exposed to substantial risk can possibly take advantage in the current market. A harder problem to assess is whether or not an auction's 9. This outcome also holds for a descending-price open-outcry design may entice a group of dealers to conspire in auction. The first one to leave the pool stops the auction before the an attempt to corner. The theoretical analysis of the others can react. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

An Analysis of Potential Treasury Auction Techniques 409 More to the point, theoretical analyses of collu- be spelled out in terms of shifts in the demand sion assume that a small number of colluding par- schedule for the auctioned security.11 As shown in ties share information, an assumption that ignores diagram 7 (which repeats the middle panel of the the multiple arenas in which dealers compete. Deal- three-figured determination of market prices), part ers will not cooperate in auctions if such coopera- of the Treasury's total revenue results from its tion jeopardizes their trading in the secondary mar- charging winners the price that they bid, which for ket. Given the large number of participants and the its current practice is measured by the area under apparent mistrust among dealers, auction format is the demand schedule labeled "First price." That unlikely to bring them together.10 Thus, from the price discrimination, however, discourages some standpoint of public policy, the chief risk seems to demand, as investors shade their bids for fear of the lie in the manipulative actions of a single dealer, winner's curse. Adopting a second-price system the rogue with capital, which threaten the integrity turns part of that surplus back to the bidders, shiftof the market. ing out the demand schedule to the position labeled "Second price." Under a first-price scheme, the Treasury would have to work down the left A CLOSER LOOK AT A POPULAR demand schedule and award securities at lower PROPOSAL FOR REFORM prices to place the total issue (marked by the vertical dashed line). Under the second-price scheme, The abuses of the auction rules last summer rekin- one price, depicted by the horizontal line drawn to dled enthusiasm for a simple alternative, the intersect the right demand schedule at the issuance second-price sealed-bid auction, to the current dis- size, exhausts the issue. The consequences for revcriminatory pricing practice. Proponents argue that enue depend on whether or not the loss from the awarding securities at a uniform price rather than at inability to price discriminate (left triangle) is the bid prices would end cornering attempts by greater than the gain from added demand (right eliminating the profit potential in market manipu- triangle). lation. And in a way that sounds contradictory, they Support for the second-price scheme is stronger argue that total revenue would increase by the than the balancing of these welfare triangles would surrender of the ability to discriminate across bids. suggest. Those analysts working with explicit models of bidder behavior in a Treasury-like format, rather than with reduced-form demand schedules, The Consequences for Revenue typically find that a second-price scheme does produce higher revenue for the seller. Further, in 1962 The algebra required to calculate an optimal bid- Milton Friedman made a persuasive argument that ding plan in a multiple-unit auction quickly becomes intractable. No analyst yet has worked through the strategic implications of a large core of 11. For details, see Henry Goldstein, "The Friedman Proposal bidders carving up a block of securities. The logic for Auctioning Treasury Bills," Journal of Political Economy, of the single-unit case, however, suggests that the vol. 70 (August 1962), pp. 386-92. extent of bid shading can be extreme. In a firstprice auction of multiple units, a strategic bidder 7. The effect of second-price awards on revenue does not have to beat the participant with the next highest valuation to win but must better only the middle of the pack of bidders. If one steps away from the explicit modeling of bidder behavior, the implications for revenue can 10. The existence of interdealer brokers is one sign of the level of mistrust among dealers. These intermediaries provide anonymity to dealers in transactions between dealers, who are reluctant to phone their competition directly and to show which side of the market they are on. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

410 Federal Reserve Bulletin • June 1992 revenue would increase.12 Dealers devote consider- awards, or the extent to which secondary market able energy to the auction only to sell those securi- supply can be restricted. As seen in the right panel ties almost immediately to customers—and most of the figure, however, the investors who are profit from doing so. Part of the resources devoted unwilling to pay the auction price will be unwilling to that distribution could be appropriated by the to pay the secondary market price. Now the cor- Treasury if it could directly deal with those cus- nerer acting as a discriminating monopolist, rather tomers. A second-price auction, because it is less than maximizing profit, minimizes loss (the shaded penalizing to the aggressive or the uninformed, triangle). Clearly, one cannot profit from cornering may be the best vehicle to attract those people. a market with invariant demand, because one ultimately must sell the security to those from whom it was bid away. In this simple world, cornering The Consequences for Cornering would be eliminated by the removal of the potential for profit. As seen previously, the current format reduces This result, however, requires that the switch in demand at auctions and makes it more sensitive to auction technique completely unify the primary price in relation to the demand determined by the and secondary markets. Even after the adoption of buy-and-hold ownership of the long-time investor. common-price awards, presence at auctions may This reduction is the rational response to the Trea- still be limited to a segment of the investor popusury's discriminating pricing: The investor shows lace, perhaps to those who are more sensitive to price. less of his true consumer surplus to a seller whose Those who sold short in the when-issued market stated intention is to seize it. want quickly to cover their positions at the auction. Moving to a common-price format permits Also, participants at an auction face uncertain outdemand at the auction to reflect the true nature of comes, since they may not be awarded securities if investor preference. With no friction, investors can they have not cast their bids appropriately. Those bypass the dealer intermediaries and bid directly, particularly averse to this quantity risk may well sharing the resulting savings with the Treasury. delay purchase to secondary trading. Most impor- Viewed in terms of the three-figured determination tant, direct bidding requires incurring the fixed of Treasury prices, second-price awards would costs of ensuring payment and arranging for the make the auction demand curve identical to the placement of bids—the prospects for which depend secondary market demand curve (diagram 8). on the pace of automation and the nature of regula- Against this backdrop, the cornerer of an auction tion. As a result, the infrequent purchaser may would place surprising bids that shift the demand remain in the secondary market. In other words, schedule from Demand to Demand'. The horizontal advocates of this format assume that dealers exist distance of that shift represents the cornerer's solely to shade bids because of the Treasury's discriminatory pricing. If, however, dealers provide any other service in the distribution of securities, 12. From correspondence quoted in Goldstein, "The Friedman then a gap remains between the demand schedules Proposal," p. 391. 8. The effect of second-price awards on cornering Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

An Analysis of Potential Treasury Auction Techniques 411 of the auction and the secondary market. A suffi- Strategically, a dealer attempting to corner this ciently large gap represents an opportunity for auction must show his or her hand to the competimanipulation. Indeed, second-price awards might tion as the Treasury auctioneer raises the price. But encourage strategems should differences between the public exposure of the manipulator's addition primary and secondary markets remain. A to the volume of bids warns other participants— would-be manipulator could place bids for a sub- particularly those short the when-issued security— stantial fraction of an issue well above the market that they must raise their own bids if they want to consensus, and thus ensure awards, but pay only receive awards. That opportunity for others to react that price required to allocate the remaining portion should narrow the potential for profit in a corner of securities to his or her unsuspecting competitors. attempt. To the extent that the average issuing price is raised in the attempt, the Treasury garners part of the profits. In contrast, in a sealed-bid auction, the bulk of the price action comes at the announcement AN ALTERNATIVE PROPOSAL of surprising awards, when other dealers realize that they are short and then react. In a real-time On balance, the switch to single-price awards likely auction, that reaction occurs during the bidding. represents an improvement on current Treasury Also, the positive information revealed by the practice; however, the Joint Report recommended ascending-price nature of this auction format, on the study of a more radical change. Collusive be- average, should benefit Treasury revenue. havior relies on the closed nature of sealed bids— A real-time auction may pose a daunting techniwhether in the current first-price procedure or in cal challenge. The goal of equal access requires the second-price alternative. A schemer needs only that every effort be made to decentralize the systo beat the market's best guess formed moments tem: Anyone willing to pay the fixed cost of a before bidding closes in order to leave his or her properly configured terminal should be allowed to competitors no chance to react. enter. At the same time, all bidders must be An open-outcry system lets other market partici- screened to ensure payment if their bids are sucpants react to any surprise. Technologically, pieces cessful. If the fixed cost of entry is too large, of paper are not needed for the expression of the participation at the auction will be limited and a intent to purchase Treasury securities. As an alter- two-tiered distribution of securities and all the native, registered dealers could connect by phone attendant risks may be perpetuated. If access is too (with appropriately designed security) to a central free, the physical demands of directing a large computer; those not preregistered could appear at volume of messages in a narrow span of time may their local Reserve Bank with sufficient documenta- prove taxing to any computer network. The private tion to be included as a serious bidder. The scenario sector provides some precedent, but those efforts might unfold as follows. The auction begins as the are small relative to the scale of operation required Treasury calls out a price and all interested parties to sell Treasury securities. submit their quantity demanded. With quick tabula- Opening the auction might create new opportunition, the volume of bids at that price is announced ties for large traders to move prices. For example, and, in successive rounds, the price is raised until the surprising presence of a large trader elevating the volume demanded is smaller than the size of demand during the early stages of an auction might the issuance. The next-to-last price called out clears lead to a groundswell of enthusiasm that would the auction market because it is the highest price push up the market-clearing price.13 Similarly, the consistent with selling the entire issue. Everyone sudden dropping out by a large trader at a low price who bid at the top price would be guaranteed might dampen spirits enough to lower the marketawards at the lower, market-clearing price. Those clearing price. Either action might present the who bid at the next-to-last price but who did not move up into the top group receive the remaining securities at that lower price. Since bids from that 13. See the description of the "herd effect" provided by Gary L. group would exceed the remaining securities, some Gastineau and Robert A. Jarrow, "Large-Trader Impact and Market Regulation," Financial Analysts Journal (July/August 1991), scheme for partial awards would be required. pp. 40-51. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

412 Federal Reserve Bulletin • June 1992 potential for profit. Also, as long as the three trad- no longer feel the need to shade their bids. Also, by ing forums in Treasury securities are imperfectly making direct bidding more attractive, individual integrated, the possibility of a market squeeze dealers will no longer have as much access to remains. At the least, an open-outcry auction does customer business in attempts to swing the market. not abet a squeeze attempt by facilitating the bid- • Real time. Auctions involving many particiding away of securities by surprise, as both types of pants that are conducted on an open-outcry basis sealed-bid auctions do. Thus, the Treasury would are less susceptible to corners, which rely on be less likely to be the counterparty from which a surprise. In a sealed-bid auction, such surprise manipulator amassed a controlling position. Fur- requires only stepping above the market consensus. ther, with easy entry, large traders would be pitted That surprise is lost if market participants can react against each other in their pursuit of trading profits, during the bidding. as an open-outcry system turns market forces • Ascending price. If the auctioneer calls out an against market manipulation. As an added benefit, ascending list of prices until the issue is sold, the the technical sophistication required to conduct an surprise of a cornering attempt is further eroded. automated open-outcry system could also be made Simply, other participants remain in the bidding. available for surveillance regarding compliance Also, an ascending-price auction produces the with the auction rules. highest expected revenue to the seller. In this regard, the open outcry of bids is a form of insurance against threats to the integrity of trading: CONCLUSION An auction in real time makes active manipulation more difficult. As a side benefit, an open-outcry While the academic literature suggests that the auction returns some of the potential profit from current Treasury procedure has drawbacks, it does collusion to the Treasury in the form of higher not readily identify the best way to auction govern- prices. ment securities. Individual elements of the problem There are no guarantees that any system will are addressed, but other considerations do not fit prevent manipulation. Any new system, however, nicely into the theoretical models. The Treasury is should be flexible enough to permit experimentaobliged to provide easy entry into the auctions, tion with auction design. Planning for an openbroadening, where possible, the ownership of the outcry system may provide the requisite flexibility. public debt; and it must adhere closely to a A transition to a new auction system has potencrowded schedule of borrowing. Also, while the tial problems, as any reform is likely to be designed Treasury may not always get top dollar for its to entice investors to bid directly. Investors, howissues, the present auction system may ease the ever, may be hesitant at first to step in, preferring to conduct of monetary policy and ensure a deep observe before acting, especially if bidding has a and active secondary market in government substantial fixed cost. In the interim between the obligations. change in format and direct participation by inves- The shift to single-price awards may mark an tors, the auction would rely on dealers for their improvement over the current technique, but it may usual role—buying a large share of issuance—even not avoid the repetition of recent experience. No though the reforms would ultimately erode their matter how rigidly rules are enforced, the incentive customer base and lessen their market power. If to manipulate the market remains. dealers left the market before final investors This reading of the literature suggests that the appeared, experimentation with alternative auction optimal Treasury auction would have the following techniques might prove expensive. However, if attributes (in order of decreasing importance): access to the auction were kept as open as possible, scores of price-sensitive investors in the Treasury market might step in should auction prices differ • Second price. If all securities are awarded at markedly from those in secondary trading. Indeed, the lowest price of an accepted bid, investors wary the threat of entry in itself might be sufficient to of the winner's curse may enter the auction directly. lessen the risk of an adverse reaction. Such entrance raises total demand because bidders Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

An Analysis of Potential Treasury Auction Techniques 413 REFERENCES Mester, Loretta J. "Going, Going, Gone: Setting Prices with Auctions," Federal Reserve Bank of Philadelphia Business Review (March/April Bikhchandani, Sushil, and Chi-fu Huang. "Auc- 1988), pp. 3-13. tions with Resale Markets: An Exploratory Milgrom, Paul. "Auctions and Bidders: A Primer," Model of Treasury Bill Markets," Review of Journal of Economic Perspectives, vol. 3 (Sum- Financial Studies, vol. 2 (1989), pp. 311-39. mer 1989), pp. 3-22. Eatwell, John, Murray Milgate, and Peter Newman, , and Robert J. Weber. "A Theory of eds. The New Palgrave: A Dictionary of Eco- Auctions and Competitive Bidding," Econometnomics. New York: Macmillan Press, 1987. rica, vol. 50 (September 1982), pp. 1089-122. Friedman, Milton. "Comment on 'Collusion in the Robinson, Marc S. "Collusion and the Choice Auction Market for Treasury Bills,'" Journal of of Auction," The Rand Journal of Economics, Political Economy, vol. 72 (October 1964), vol. 16 (Spring 1985), pp. 141^15. pp. 513-14. Smith, James L. "Non-Aggressive Bidding Behav- "How to Sell Government Securi- ior and the 'Winner's Curse,'" Economic Inties," Wall Street Journal, August 28, 1991. quiry, vol. 19 (July 1981), pp. 380-88. Gastineau, Gary L., and Robert A Jarrow. "Large- Smith, Vernon L. "Bidding Theory and the Trea- Trader Impact and Market Regulation," Finan- sury Bill Auction: Does Price Discrimination cial Analysts Journal (July/August 1991), Increase Bill Prices?" Review of Economics and pp. 40-51. Statistics, vol. 48 (May 1966), pp. 141^6. Goldstein, Henry. "The Friedman Proposal for U.S. Department of the Treasury, U.S. Securities Auctioning Treasury Bills," Journal of Political and Exchange Commission, and Board of Gover- Economy, vol. 70 (August 1962), pp. 386-92. nors of the Federal Reserve System, Joint Report Graham, Daniel A., and Robert C. Marshall. on the Government Securities Market. Washing- "Collusive Bidder Behavior at Single-Object ton, D.C.: Government Printing Office, 1992. Second-Price and English Auctions," Journal of Vickrey, William. "Counterspeculation, Auctions, Political Economy, vol. 95 (December 1987), and Competitive Sealed Tenders," Journal of pp. 1217-39. Finance, vol. 16 (March 1961), pp. 8-37. Henriques, Diana B. "Treasury's Troubled Auc- Weber, Robert J. "Multiple-Object Auctions," in tions," New York Times, September 15, 1991. Englebrecht-Wiggans, Richard, Martin Shubik, McAfee, R. Preston, and John McMillan. "Auc- and Robert M. Stark, eds. Auctions, Bidding, and tions and Bidding," Journal of Economic Litera- Contracting: Uses and Theory. New York: New ture, vol. 25 (June 1987), pp. 699-738. York University Press, 1983, pp. 165-91. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

414 Industrial Production and Capacity Utilization Released for Publication April 15 industrial production in March was 2.1 percent above its year-ago level; but despite the recent The index of industrial production rose 0.2 percent gains, it was still about 1 percent below its level of in March, after having increased a revised 0.5 per- last October. For the first quarter as a whole, induscent in February. The increase in March was led by trial production declined at an annual rate of 4.1 gains in the production of durable consumer goods percent, after having fallen 0.7 percent in the previand a pickup in energy output, mainly at utilities. ous quarter. Total industrial capacity utilization At 107.2 percent of its 1987 annual average, total rose 0.1 percentage point in March, to 78.1 percent. Industrial production indexes Twelve-month percent change Twelve-month percent change 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 Capacity Capacity 120 100 ^ ^ ^^ V - ^^^^^ Production — 80 Production — 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Percent of capacity Percent of capacity All series are seasonally adjusted. Latest series, March. Capacity is an index of potential industrial production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

415 Industrial production and capacity utilization Industrial production, index, 1987=100' Percentage change CCCaaattteeegggooorrryyy 11999911 11999922 19912 19922 MMaarr.. 11999911 ttoo Dec.r Jan.r Feb/ Mar.P Dec.r Jan.1 Feb.r Mar.P MMaarr.. 11999922 Total 107.4 106.4 106.9 107.2 -.6 -.9 .5 .2 2.1 Previous estimate 107.4 106.6 107.2 -.6 -.8 .6 Major market groups Products, total 108.4 107.4 107.9 108.3 -.5 -1.0 .5 .3 1.7 Consumer goods 109.1 108.0 108.5 109.0 -.9 -1.0 .5 .5 4.1 Business equipment 121.4 119.8 121.2 121.4 -.3 -1.2 1.2 .2 1.0 Construction supplies 95.0 95.3 95.3 95.1 -1.0 .3 .0 -.2 1.2 Materials 105.8 104.9 105.2 105.4 -.8 -.8 .3 .2 2.7 Major industry groups Manufacturing 108.1 107.2 107.8 107.9 -.4 -.8 .5 .1 2.6 Durable 107.1 105.8 106.7 106.8 -.7 -1.2 .9 .1 1.7 Nondurable 109.5 109.0 109.1 109.3 -.1 -.4 .1 .2 3.7 Mining 98.8 97.5 98.1 97.9 -.8 -1.4 .7 -.2 -3.5 Utilities 107.9 106.8 106.6 108.8 -2.8 -1.0 -.3 2.1 2.3 Capacity utilization, percent MEMO Capacity, percentage 1991 1992 change, Average, Low, High, Mar. 1991 1967-90 1982 1988-89 to Mar. Dec. Jan. Feb.' Mar.P Mar. 1992 Total 82.1 71.8 85.0 78.4 78.7 77.8 78.0 78.1 2.5 Manufacturing 81.4 70.0 85.1 77.2 77.7 76.9 77.1 77.0 2.7 Advanced processing 81.0 71.4 83.6 76.8 76.6 75.7 76.0 75.9 3.1 Primary processing . 82.3 66.8 89.0 79.9 80.2 79.7 79.8 79.7 1.9 Mining 87.4 80.6 87.2 89.0 86.2 85.0 85.6 85.4 .6 Utilities 86.7 76.2 92.3 83.0 83.4 82.6 82.3 84.0 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 during the relatively mild winter, rebounded in that the production of durable consumer goods March. The output of nonenergy materials, which increased 0.5 percent in March because of gains in fell noticeably in December and January, rethe production of trucks, appliances, and furniture; bounded partially in February but was unchanged output of autos declined last month. The output of in March; the recent weakness in both durables and nondurable consumer goods rose 0.4 percent in nondurables has been widespread. March, boosted by a sharp increase in energy for When analyzed by industry group, the data show residential use. The production of business equip- that manufacturing output edged up 0.1 percent in ment excluding motor vehicles increased 0.2 per- March but that capacity utilization at factories cent as most major categories posted gains; how- declined 0.1 percentage point, to 77.0 percent. In ever, even sifter allowing for the effects of a strike March, the operating rates for both primary and at a major producer of construction-related machin- advanced processing edged down. Within primary ery, the output in this sector has remained weak and processing, capacity utilization for chemicals, for has changed little, on balance, over the past year. stone, clay, and glass products, and for fabricated The production of construction supplies edged metals declined, but most other primary-processing lower last month and, on average, the output in the industries posted gains. Within advanced processfirst quarter was a bit below that of the previous ing, the factory operating rate increased noticeably quarter. Materials output rose 0.2 percent because for furniture and fixtures but declined for instruproduction of energy materials, which had declined ments; most other major advanced-processing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

416 Federal Reserve Bulletin • June 1992 industries posted small and nearly offsetting The production at mines decreased 0.2 percent in changes. On the whole, the utilization rates both March. The output at utilities jumped 2.1 percent, for primary and advanced processing have weak- after having been curtailed over the winter months ened since last fall, with large declines for transpor- because of the unseasonably warm weather. tation equipment, paper and products, rubber and plastic products, primary chemicals, and miscellaneous manufactures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

417 Statements to the Congress Statement by Alan Greenspan, Chairman, Board The reaction of the Japanese stock market to of Governors of the Federal Reserve System, the October 1987 contraction in the U.S. market before the Committee on Banking, Housing, and was particularly mild. And the Japanese market Urban Affairs, U.S. Senate, April 17, 1992 resumed its rapid rise in early 1988, regained its August 1987 highs by mid-1988, and continued to soar until year-end 1989. I am pleased to appear today to discuss, as you Just as the reasons for the sharp increase in requested, recent stock market developments in stock prices are not entirely clear, so too the Japan. I think that it is useful to review these factors behind the decline that began in 1990 developments from a longer time perspective cannot be enumerated with full confidence. Inthan that of just the past few weeks. I also will deed, the decline may be at least partly a correcaddress the implications for Japanese banks and tion from an inexplicable and unsustainable high for the overall performance and prospects for the level. Under such conditions any random event Japanese and world economies. can engender a contraction. Japanese stock prices nearly tripled from the Nonetheless, monetary policy has been an end of 1985 to the end of 1989. The reasons for important influence. Policy tightening in Japan this increase are not completely clear. It seems to began in earnest in mid-1989, largely with the have been fueled, in part, by the low interest avowed intent of curbing the land and stock price rates associated with an expansionary monetary bubble before it was perceived to take on unconpolicy adopted by the Bank of Japan from Feb- trollable dimensions. By late 1990, nominal ruary 1985 to December 1987. This initiative was short-term interest rates had risen 350 basis directed at countering the contractionary effects points. The growth rate of M2+CDs (the Bank of on the Japanese economy of the doubling of the Japan's targeted aggregate) plummeted in reyen's exchange value against the dollar. Land sponse. Real long-term interest rates rose more prices in Japan also soared during this period, than 200 basis points from late 1989 until late reinforcing the rise in stock prices because Jap- 1990. anese corporations are major land owners. Al- Stock market prices declined 40 percent in though other world stock markets were also 1990, dropping particularly sharply after the Iraqi generally booming in the early part of this period, invasion of Kuwait. After having rallied briskly the Japanese market far outpaced the markets of along with other major stock markets in the wake other industrial economies. of the allied victory in the Persian Gulf war, the Profits of Japanese corporations increased Japanese market seesawed through most of 1991. very strongly—9Vi percent per year in 1987 and Late in the year, however, amid growing anxi- 1988—but stock prices rose at a much faster rate. eties over the slowing of economic activity in As a result, conventional price-earnings ratios Japan, a rapidly worsening profit outlook, and hit a peak of more than 70 in August 1987, which recurring revelations of financial market improwas about three to five times the PE ratios in prieties, stock prices began a renewed plunge. other major markets. Even after adjusting for From the end of October 1991 through April 16, certain accounting differences (primarily with 1992, the market fell a further 30 percent. This respect to depreciation allowances) and the prev- has occurred despite a significant easing of monalence of cross-share holdings among Japanese etary policy. corporations, Japanese PE ratios were still twice This latest decline in Japanese stock prices the ratios of other major equity markets. brought conventional Japanese PE ratios down Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

418 Federal Reserve Bulletin • June 1992 to the neighborhood of 30 or so, somewhat above large-scale portfolio diversification abroad. that for the S&P 500 in the U.S. market. Doubt- Long-term foreign portfolio investments by Japless, adjusted PE ratios for Japanese stocks are anese residents, including purchases of U.S. lower than this, and other valuation measures government and corporate bonds, averaged such as price-to-book-value or price-to-free- nearly $90 billion per year during the 1986-88 cash-flow are less elevated. period, net of portfolio investments by foreign The Japanese stock market decline does not nationals in Japanese securities. The excess of appear to have had important spillover effects on long-term capital outflows over the current ac- U.S. financial markets to date. Our stock market count surplus was balanced primarily by shorthas been quite strong over the past year or so. In term private capital inflows, notably borrowing general, movements in price changes among ma- abroad by Japanese banks, which averaged more jor stock markets are only weakly correlated, than $55 billion per year during the 1986-88 because they respond primarily to developments period. in the home country, which have the greatest This pattern of capital flows began to change impact on profits. One exception to this pattern during 1990 and was sharply reversed in 1991 as would be the consequence of major shocks, such Japanese stock and land values peaked and as the 1990 oil price shock, which affect all the eroded. Japan experienced net long-term capital world's economies. inflows in 1991, the first year for such an oc- The decline in the Japanese stock market has curence since 1980. A still-positive but reduced not had any great effect on the yen-dollar ex- rate of net foreign direct investment by Japan change rate, either. That exchange rate has was more than offset by net portfolio and other moved over a range of ¥ 123 to ¥ 142 per dollar long-term capital inflows. Japanese portfolio over the past year and a half, a much narrower holders continued to purchase American and percentage range than, for example, the Deut- other foreign securities, though at rates far below sche mark-dollar rate. Since the December 1989 the rates of 1986-89. These purchases of U.S. peak of the Japanese stock market, the net and other foreign securities were outweighed, appreciation of the yen against the dollar has however, by very large purchases by foreigners been 8 percent. of Japanese securities. Stock purchases were The rapidly rising prices of Japanese land and particularly strong. The sharp decline in Japaequities, together with the huge appreciation of nese stock prices made equities seem more reathe yen from 1985 to 1987, made foreign land, sonably priced, and the decline in prices had equity, and bonds demonstrably attractive to apparently left foreign investors' portfolios un- Japanese investors. Yen-denominated debt rose derweighted in yen assets. sharply against the increasingly valuable collat- The long-term capital inflow and current aceral, freeing funds to move abroad. During the count surplus in 1991 were offset by large private 1986-88 period, Japan was a huge exporter of short-term capital outflows. Japanese banks, long-term capital, exceeding $130 billion in each whose capital positions were eroding with the of those three years, on a net basis, an amount stock market decline, moved to shrink their far in excess of Japan's current account sur- balance sheets by reducing both foreign assets pluses, which averaged more than $80 billion per and foreign liabilities; liabilities were reduced $93 year. billion more than assets. The 1991 pattern of Despite increased gross demands for foreign capital flows appears to have continued into the currencies, the yen appreciated steeply against early months of 1992. the dollar. Along with rising concern over market Some concerns have been expressed in the access abroad, Japanese manufacturers were led financial press about the implication, for markets to undertake large direct foreign investments to outside Japan, of this reversal from Japan's being expand manufacturing capacity in their foreign a long-term capital exporter to its being a longmarkets. Direct foreign investment outflows term capital importer. These concerns, while peaked at more than $45 billion in 1990. Simi- understandable, seem to me exaggerated. As larly, rising yen-denominated asset values led to long as Japan continues to run current account Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 419 surpluses, it must, by definition, be an overall ital ratios in the Basle Accord on capital adecapital exporter. To the extent that Japan's quacy. In the past, asset growth at Japanese global current account surplus is widening, the banks appeared to have been oriented toward net increase in Japan's capital exports contrib- accumulation of market share, in part fueled by a utes to the supply of world savings, thereby in relatively low cost of capital as well as by addieffect reducing pressure on interest rates in in- tions to capital resulting from large and growing ternational credit markets. unrealized profits on their equity portfolios. In To be sure, shifts in the composition of Japan's the past two years, these sources' support of the desired capital exports may cause some price growth objective has disappeared; it appears that adjustments in various asset markets. But these Japanese banks are focusing much more careadjustments need not be terribly disruptive. Jap- fully on the profitability of their core banking anese investors hold, for example, only a small business. This shift in business priorities is likely fraction—2 percent to 3 percent—of outstanding to be a healthy development in the long run. marketable U.S. Treasury securities. Their hold- Japanese banks differ from banks in some ings of U.S. equities are of even smaller magni- other countries, including the United States, tudes. Although U.S. data indicate that Japanese because they have been permitted to hold subinvestors sold, net, about $20 billion in U.S. stantial equity positions in nonfinancial corpora- Treasuries in 1990, interest rates on these instru- tions. The appreciation of the value of these ments nonetheless declined, as other investors, equity holdings buttressed the capital of Japaincluding U.S. investors, were willing to buy nese banks. Investors in Japanese bank stocks, them. In 1991, Japanese investors were, in fact, recognizing the value of these appreciating nonsmall net purchasers of U.S. bonds and stocks. traditional bank assets, were willing to pay large The big change in 1991 was in net purchases by premiums to acquire shares of Japanese banks. foreigners of Japanese securities, particularly These premiums were above what might be exstocks, which were very large. pected based on the earnings of the banks from their banking business alone. To that extent, owning shares in banks took on some of the IMPLICATIONS FOR JAPANESE BANKS characteristics of owning shares in a mutual fund. Reflecting the decline in the Japanese stock mar- Bank regulators, in developing the Basle Acket and the adoption of the Bank for Interna- cord, were well aware that the quality of Japational Settlements capital standards, Japanese nese bank capital resulting from unrealized gains banks have restrained their asset growth in both in equity securities was inferior to capital derived domestic and international markets in recent from other sources. Because such capital was years. Whereas the domestic assets of Japanese correctly judged to be subject to market risk and banks increased at double-digit rates in the years because banks would in all probability be subject 1985 through 1989, they increased only 8 percent to a tax liability for capital gains if forced to in 1990 and were flat in 1991. The pattern is even realize such gains to bolster capital, the Basle more dramatic in terms of international activity. Accord permitted only 45 percent of these unre- The international assets of Japanese banks al- alized gains to be counted as capital—and, moremost quadrupled from 1984 to 1989, with their over, not as equity capital but only as tier 2 (that share of international assets of all banks rising is, supplemental) capital. from less than one-fourth to almost 40 percent. In The effect of the decline in the Tokyo stock 1990 and 1991, however, the international assets market on the risk-weighted capital ratios of of Japanese banks declined, on balance, and their Japanese banks varies from bank to bank, deinternational share fell back to less than one- pending on the nature and overall importance of third. equity holdings at individual banks. In this con- The restraint in the overall asset growth of text, the critical question is not the ability of Japanese banks has been caused, in part, by their Japanese banks to meet the Basle Accord's mindesire to exceed the minimum risk-weighted cap- imum requirement of 8 percent for the sum of tier Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

420 Federal Reserve Bulletin • June 1992 1 and tier 2 capital but rather how much addi- fact, the household saving rate had been on a tional capital will banks need to raise and at what downward trend in the 1980s. During the eight cost. Or, alternatively, how much will banks be quarters since the Tokyo stock market turned induced to scale back their assets? A significant down in early 1990, there has been little evidence constraint on the asset growth of Japanese banks of a shift in household expenditure to replenish could be serious for nonbank borrowers in Japan the stock of savings; the household saving rate because of the heavy reliance of companies in has remained well below its average of the pre- Japan on bank credit and because capital market vious decade. Although consumption has deceland other nonbank sources of funds are not as erated with the recent slowdown in overall real well developed in Japan as in the United States. growth, it has not been conspicuously weak. However, Japanese banks may choose to pro- Possible negative effects on consumption from tect their traditional domestic business base and lower equity prices could be compounded by instead choose to pare back their loans to some additional declines in prices of housing and land, of their newer customers, including those in which are mutually affected by developments in overseas markets. Spreads and margins on bank- the stock market. Residential and commercial ing transactions in these markets might in the real estate prices have turned down in major short run increase somewhat as a major compet- metropolitan areas in the latest surveys and have itor scales back, just as such spreads narrowed stopped rising as quickly in other parts of the when the Japanese banks expanded their activi- country. ties. Over the intermediate run, however, the Negative effects of the stock market decline on flexibility to lend by other banks and the in- investment in Japan could be more significant. creased supply of credit from nonbank sources The net asset positions of nonfinancial firms are are likely to be sufficient to ensure that credit affected directly by share-price declines. Lower market conditions on a worldwide basis will not stock prices also have substantially elevated the be substantially weakened by a scaling back by cost of issuing new equity, as well as increased Japanese banks. the cost of equity-linked methods of raising funds. In coming months Japanese firms will need to refinance a significant amount of previ- MACROECONOMIC EFFECTS ON THE ously issued convertible and warrant bonds. Of JAPANESE AND WORLD ECONOMIES course, Japanese investors may be able to borrow through other avenues—including a revital- In addition to their possible effects on credit ized domestic corporate bond market—but it is availability in Japan, lower prices of Japanese likely to be at substantially higher costs than in stocks could affect Japan's real economy through the past, which would tend to reduce Japanese their negative impact on the wealth of house- international competitiveness. Japanese authoriholds, with attendant effects on private consump- ties have interpreted the recent deceleration of tion expenditure and, in turn, real GNP. One bank credit as arising from weak demand for important limiting factor, however, is that stocks funds. It is possible, however, in view of the constitute less than 10 percent of total household deterioration of the asset portfolios of some financial wealth in Japan. In addition, estimates Japanese banks' and the negative impact of the from econometric studies suggest that in Japan stock market decline on banks' capital that tightthe marginal propensity to consume out of wealth ening of credit could restrain investment. is relatively small. Spillovers to business confidence also repre- There are additional reasons to suspect that sent a potential risk to private investment from actual impacts on consumption from declining the stock market decline. Measures of business equity prices could be even smaller in the present confidence have deteriorated steadily in recent episode. Evidence from saving rates suggests months, and investment has been a weak sector that the expansion of household wealth during of final demand. The latest surveys of business the recent stock market boom was not fully intentions indicate that private investment may incorporated into household spending plans. In decline in fiscal year 1992 as much as 5 percent, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 421 which would be the first decline since 1975 and a Japan is the second largest export market for the sharp reversal of rapid increases in private in- United States, the separate contribution of the vestment spending in recent years. stock market decline to weaker Japanese demand The recent slowdown in the Japanese economy for U.S. exports is not expected to be large. has been reflected in reduced import demand and In summary, the decline in the Japanese stock a widening external surplus. Reflecting the incor- market is a significant development, especially poration of some negative effects from stock for Japan. It appears primarily to be a correction market price declines that have occurred al- of the bubble in asset prices that was causing ready, most forecasts project growth of domestic distortions to the Japanese economy with some demand and GNP in Japan to be weak until the spillover effects on the rest of the world. The second half of this year, with some risk of further Federal Reserve will continue to monitor closely slowing if stock prices continue to slide substan- the developments in Japanese financial markets tially further. Accordingly, growth in Japanese and their implications for our economy and mardemand for U.S. exports is not likely to be a kets. In my judgment the impact on the United particular source of strength for the U.S. econ- States from Japanese stock price changes to date omy in the near term. Nevertheless, even though is likely to be limited. • Statement by David W. Mullins, Jr., Vice Chair- first Congress charged the Department of the man, Board of Governors of the Federal Reserve Treasury with the responsibility of borrowing in System, before the Subcommittee on Domestic the name of the new republic. In 1913, the Monetary Policy of the Committee on Banking, drafters of the Federal Reserve Act assigned the Finance and Urban Affairs, U.S. House of Rep- Federal Reserve District Banks to serve as fiscal resentatives, April 28, 1992 agents for the Treasury and facilitated the nationwide distribution of the debt. Later, in 1934, the Thank you for this opportunity to communicate Congress created the Securities and Exchange the Board of Governors' views on proposed Commission to enforce securities laws that were legislation concerning the government securities targeted to counter the considerable problems at market. The Joint Report on the Government hand in private financial markets by nurturing Securities Market suggested comprehensive ad- fairness and openness. Although the Board ministrative changes, some already made and works closely with the various agencies and has others proposed, that will significantly increase general oversight responsibilities for the activiopenness in this market and sharply limit the ties of the District Banks, it has little direct possibility of a replay of recent events.1 The regulatory authority for the U.S. government Board supports these changes, which are tar- securities market. geted to the problems and to the opportunities We think that this arrangement is wise and identified to foster fair and efficient markets. In gives the Board of Governors a unique perspecthe Board's view, this progress makes it inadvis- tive by allowing us to examine important issues able to enact either H.R.4450 or H.R.3927. regarding this market from an economywide per- This decision was made after having carefully spective. Freed of the specific responsibilities of weighed the costs and benefits of further change, managing the debt, distributing securities, or as we see them at this time, in accordance with policing trading activity, we can evaluate the our legislated role in the oversight of financial consequences of proposed reform against broad markets. In 1789, President Washington and the public policy standards. Our overall evaluation of both pieces of legislation started from a fundamental question: What 1. U.S. Department of the Treasury, U.S. Securities and are the problems that need to be addressed? In Exchange Commission, and Board of Governors of the the Board of Governors' view, the government Federal Reserve System. Joint Report on the Government securities market ably performs an important Securities Market (Government Printing Office, 1992). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

422 Federal Reserve Bulletin • June 1992 allocative role in the U.S. economy by matching around the country to place government debt, a voracious borrower, the federal government, while secondary market traders sit before banks with investors across the nation and around the of computers, able to transact in size on a word world. The U.S. government has been able to tap or a few keystrokes. We must automate and we this market with record issuance time and time must do it quickly. again. This market is deep and liquid, routinely Moreover, as endorsed in the Joint Report, permitting participants to execute trades of huge alternative auction designs may help to channel size with remarkable rapidity at paper-thin bid- the force of competition in our favor. One such ask spreads. Consequently, the market serves as alternative—a single-price and open auction— an important source of liquidity for individuals holds the promise of enhancing participation in and financial institutions. the auction and exposing attempts to manipulate The trading community commits large sums of the market, thereby narrowing the possibility of risk capital to provide these services in the manipulation and producing lower Treasury borpursuit of profits. But there are economy wide rowing costs. benefits as well. The government securities market has an impressive ability to digest news, translating the daily barrage of economic releases H.R.4450 and political commentary efficiently into prices. In doing so, it provides real-time quotes on a host With this common ground, it is clear that the of issues that serve as benchmarks for the pricing Board shares many of the objectives of of nongovernment securities. That responsive- H.R.4450. This proposed legislation calls for the ness also serves monetary policy well because it broad reconstruction of the auction process, ingives us a reliable gauge of financial markets in structing the Board of Governors to direct autogeneral and a liquid and efficient venue to con- mation in a way that increases public access, to duct open market operations. conduct experiments with single-price awards, to However, we sit here today as the result of attempt additional experiments with a tap issuidentifiable problems with the market. The prob- ance technique, and to produce a study of the lems that have come to light so far—evidence of results for the Congress within two years. Also, lying in the issuance of government securities H.R.4450 would require that any advisory comand episodes of price distortions that are perhaps mittee established to advise the Board or the related to attempts to manipulate the market— Secretary of the Treasury or any Federal Reclearly signaled the need to act. And we have serve Bank on the marketing or sale of Treasury acted, all of us. The Joint Report provides a securities include as large a number of members blueprint for the thoughtful and comprehensive as is feasible and hold open meetings. renovation of this market. Taken together, these We agree that automation of and experimentachanges open the government securities market, tion with selling techniques potentially could significantly altering the way that business is serve the Treasury and the U.S. taxpayer well. conducted. They enhance our surveillance in the However, we do not believe that H.R.4450 is the primary and secondary markets, establish more means to effect that change. Following the Joint systematic lines of communication among the Report blueprint, the Treasury along with acaagencies, promise to broaden direct participation demic experts, market participants, and others is at auctions, and, by warning that there will be in the process of a rigorous examination of active Treasury supply management to shave auction reform to design a new system and frame outsized profit owing to price anomalies, put an experiment that will test it fairly. Indeed, we market participants on notice that there is no are giving the Treasury all the aid we can and are tolerance for manipulative acts. Frankly, a fail- jointly sponsoring a conference in early June to ure of the primary market to keep pace with the bring together interested parties to examine these technical advance in the secondary market likely issues in detail. contributed to the problems that were identified. I believe that the Joint Report motivated the We still rely on slips of paper and ballot boxes careful examination of innovative techniques for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 423 selling securities and combating manipulation. is difficult enough without the further entangle- The Board would prefer to see this process run ment of substantive decisions about debt issuits course. Legislating experiments now would ance. be premature, perhaps forcing the Treasury to The Board also is concerned about H.R.4450's implement procedures that were inefficient or requirement that it prescribe regulations conthat created undesirable incentives, to the detri- cerning internal controls for participants in the ment of overall funding costs. If, at a later date, automated system. It is essential that firms mainthe Congress deemed that the Treasury's exper- tain an effective system of internal controls. But iment was poorly designed or did not give ade- once legislation proposed in the Joint Report is quate consideration to alternative auction tech- enacted that prohibits misleading statements to niques, then the matter could be revisited. We issuers of government securities, the authority of feel it is unwise to attempt to legislate the path the self-regulatory organizations in this area will that progress should take. The Board fully in- be adequate, rendering superfluous the enacttends to take an active consulting role in this hient of additional legislation to mandate internal process and would welcome an invitation to controls. return here to keep the committee fully informed. Lastly with regard to H.R.4450, the require- The same argument applies with greater force ment for public advisory committees on debt to the provision of H.R.4450 requiring an exper- issuance directly concerns the Treasury, and we iment with tap issuance. Any means of broaden- defer to its judgment on this matter. I would ing participation in the auction should be the caution, however, that mandating access may subject of rigorous analysis and consideration. It erode the usefulness of these meetings. As a is not clear that legislated mandates are either result, to maintain their market knowledge the necessary or useful. For example, in a tap issu- Treasury may need to turn more to informal ance, the Treasury would have to set prices. contacts that are beyond the scope of the legis- Moving away from letting markets set prices in lation to maintain their market knowledge. Thus, an auction presents new problems in establishing the public could know less than under present and changing the prices at which the securities arrangements. would be sold to manage the Treasury's cash flow. Because these issues are complex and mistakes in even a modest experiment are poten- H.R.3927 tially very costly, the focus should be on doing what is best for taxpayers rather than meeting In the past nine months we have made much rigid legislative mandates and deadlines. progress in designing and implementing funda- Although we appreciate that H.R.4450 would mental improvements in the government securigrant the Board significant responsibilities in ties market. Unfortunately, I see little of that reforming the auction, we are concerned that this progress reflected in H.R.3927. This bill would would confuse and potentially disrupt the long- allow the erection of elaborate reporting requirestanding relationship among the Treasury, the ments, under various rationales, that have the Board, and the Federal Reserve Banks. The potential to impose on the government securities proposed legislation would appear to require that market the enforcement structure of the equity the Board take authority long granted to the market with little regard to appropriateness. Treasury, namely acting as principal with respect The government securities market provides for to the structure of Treasury auctions. Moreover, the wholesale and large-scale exchange of homothe degree to which the Board's role under geneous securities among sophisticated market H.R.4450 would supplant Treasury direction in professionals. It is not subject to the types of the specified areas, let alone in peripheral areas, insider-trading abuses that roil equity markets is unclear. Such conflicting authorities could with a distressing regularity. The abuses in the serve to slow the development of an automated government securities market that have cropped auction system and could create other difficulties up so far as we are aware—attempts at price in the fiscal agency relationship. Monetary policy manipulation and violation of auction rules— Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

424 Federal Reserve Bulletin • June 1992 have simple, targeted remedies appropriate to participants will not bear that cost: Ultimately, it their relatively infrequent occurrence. Markets must be passed on to the U.S. taxpayer. differ, and regulation should reflect that differ- My colleagues and I feel that further fundamenence. With each basis point in borrowing cost tal changes in this vital market are too important adding more than $200 million a year to the to be made without explicit congressional apdeficit, the stakes are too high to legislate for the proval. Although some supported backup authorsake of mere consistency among securities laws. ity in the Joint Report, the agencies generally In the Board of Governors' view, no compel- agreed that extensive reporting requirements need ling cost-benefit case has been made to impose not be implemented at this time. If it is the case broad-based reporting requirements in the gov- that the other substantial changes already in moernment securities market, either directly or tion fail to increase openness in the government through audit trails or so-called transparency securities market, allowing manipulative practices requirements. Without question, increased re- to lurk in the shadows, then the Congress should porting would deter manipulation and facilitate make the explicit decision to impose reporting the investigation of abuses. But does that high requirements. Since H.R.3927 potentially could level of vigilance warrant the substantial cost allow regulators to reach into every aspect of ultimately borne by taxpayers? Are not the pro- trading behavior, it is a wiser course of action to posals in the Joint Report equally efficacious and return here for enabling legislation in the future far less costly in dealing with these problems? should such authority appear necessary. The Board has not yet been shown the evidence of widespread malfunctions in the government securities market that would give reason to CONCLUSION impose the substantial costs that likely would follow from the passage of H.R.3927. The report- Substantial progress has been made in exploring, ing burden, falling on all traders, would boost the identifying, and implementing approaches to imcost of every trade. True, the direct costs of prove Treasury auctions. Board staff members additional recordkeeping might be kept manage- have been in almost continual contact with their able by the adroit application of the law by counterparts at the Treasury, and we are confiregulators. But it might not. H.R.3927 turns that dent that good-faith efforts on auction reform will decision over to the regulators once nominal continue. We believe that this process should be hurdles are passed. allowed to run its course. If the progress is We fear that an indirect cost of reporting deemed insufficient, the Congress can then rerequirements may loom even larger in the long turn to legislative approaches to reform. In our run. Rather than risk divulging their finances and view, H.R.4450 is not necessary, is possibly trading strategies, participants might reduce their detrimental, and risks entwining debt managepresence or withdraw entirely from the domestic ment authority and monetary policy. market, leaving the Treasury with fewer willing Similarly, it is unwise to confuse the equity customers for its mounting debt. Even backup and government securities markets. The latter authority, because it might be difficult to resist has served the national interest by efficiently implementing, sends the same chilling message placing the federal debt with few evident probabout the U.S. market to participants choosing a lems. If we let the force of competition work to trading arena in the global marketplace. More- our advantage, the government securities market over, in view of the extensive nature of the other can continue to provide substantial benefits. changes proposed in this report, one might ques- H.R.3927 risks imposing large costs in the search tion the capacity of this market to absorb, at an for elusive and, given the information that we acceptable cost, this additional change. Market now have, perhaps limited benefits. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 425 Statement by Peter D. Sternlight, Executive Vice though individually small, can add up to sizable President, Federal Reserve Bank of New York, amounts and can be a significant factor in aucbefore the Subcommittee on Domestic Monetary tions. Moreover, some large institutions in the Policy of the Committee on Banking, Finance New York Federal Reserve District have exand Urban Affairs, U.S. House of Representa- pressed interest in using this new electronic tives, April 28, 1992 system to submit noncompetitive bids on behalf of customers. The first phase is expected to be It is a pleasure for me to respond to your com- available countrywide by about the middle of this mittee's invitation to testify today on matters year. related to the U.S. government securities mar- When this first phase is completed, more than ket. As an official of the Federal Reserve Bank of 9,000 depository institutions that have Fedline New York, which is significantly involved in terminals connected to their Reserve Banks will processing Treasury auctions, I thought it would be able to enhance their terminals and submit be useful to focus my statement on the current bids electronically. Other bidders, including nonstatus of automating Treasury auctions. I would bank securities brokers and dealers, will also be also be happy to give my views, from my vantage able to install Fedline terminals and submit bids point at the Federal Reserve Bank of New York, electronically. This will be a significant step in on other matters the committee may wish to broadening public access to the auctions across raise. the nation. But I should note again that the first Automation of Treasury auctions is a high- phase is limited because it could not handle—and priority matter for the Treasury and the Federal was never designed to handle—the last-minute Reserve. Planning work in this regard was under flurry of large competitive bids; nor does it have way before the events of last August, but our a reliable automated backup system. timetable has been expedited in the wake of the Phase 2 of the automation process comprises a events of the past year—notably the revelation system designed specifically to meet the more of certain abusive practices by individuals at demanding needs, including backup capabilities, Salomon Brothers pertaining to Treasury auc- of large competitive bidders. The system is being tion rules. designed by the Federal Reserve Bank of New The work on auction automation may be York, in accordance with Treasury specificathought of as a several-staged approach. The first tions, and the project is on track for completion phase, which has been developed by the Federal by about the end of this year. This system will be Reserve Bank of Kansas City, encompasses a able to handle the last-minute rush of competitive system that provides for the electronic submis- bids with a very high degree of reliability and sion of bids placed throughout the country, backup recoverability in the event of adverse mainly by noncompetitive bidders, using the circumstances. The system will also assist Trea- Federal Reserve's standard "Fedline" terminal. sury and Federal Reserve staff in monitoring Fedline is the standard terminal that is currently auctions and enforcing the Treasury's rules. in use to connect the Federal Reserve Banks with Bidders under this system will also make use depository institutions for a variety of opera- of the Fedline terminal but with enhanced softtional purposes. Although this system can facili- ware that upgrades it to a so-called "Fast Fedline tate the submission of electronic bids, it is not terminal." Software development for the Phase 2 designed to handle the last-minute rush of large system, which consists of analysis, design, and competitive bids that, in fact, make up the bulk coding, is scheduled for completion before midof the dollar volume of auction bidding. More- year. Currently, system analysis is complete; over, Fedline does not have an automated software design is close to completion; and codbackup system. Designed mainly for noncompet- ing is nearly two-thirds done. itive bidders, many of which bid through rela- Because of the critical importance of this aptively small financial institutions, the system is plication, we have set aside six full months for expected to serve its intended purpose very well. testing after the completion of the system's soft- In the aggregate, of course, noncompetitive bids, ware development. First, we will thoroughly test Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

426 Federal Reserve Bulletin • June 1992 the system ourselves for four months to make both the Federal Reserve and the Treasury, but I sure that it works properly, paying particular should note that an even more critical considerattention to backup contingency capabilities. I ation is that the job be done right. A crash cannot stress too much the overriding importance program to meet a legislated deadline would of a reliable backup procedure; a hitch in the serve us ill if the new procedures were implesmooth and timely conduct of an auction could mented before we were totally comfortable that have disturbing repercussions in the Treasury they could do the job. We have a special concern market and, more generally, in financial markets. about the ability to recover very rapidly from any Overlapping the last month of our testing will computer processing interruption. As I said earbe testing of the system's communications and lier, we are now on track to complete what we security components with the large competitive call Phase 2 of the auction automation effort by bidders, who will be familiarizing themselves about the end of this year—that's the phase that with the system at the same time. Then there will automates the transmission and processing of be a month or so of volume and stress tests— large competitive tenders, in effect the "core" of posing different kinds of challenging situations to the auction. But if we find in the course of quality make sure the system can stand up to all the testing that another month or two is needed to operational contingencies that may be at all likely iron out potential bugs, I believe that time should to confront it. Finally, we will spend about a be taken to do the job properly. I'm confident month in parallel operations—that is, bidders will that the Treasury shares this view. continue to submit tenders manually but will also I should add that for many years the Federal submit them electronically—to check the system Reserve has acted as the Treasury's agent in in a production environment. If all goes well, and matters of debt management. Responsibility for I note again that we are on track so far, we determining the method, amount, and timing of expect to be able to go "live" by about the end of Treasury debt issuance appropriately rests with this year—as indicated in the schedule in the the Treasury. We are therefore not at all com- Joint Report to the Congress earlier this year. fortable with the role of being directly required Although Phase 2 will essentially automate the by law to do certain things with respect to auction process at the Reserve Bank level, there auctions when we serve only as Treasury's fiscal are also plans for carrying the process further. A agent. If auction changes are to be mandated third phase will automate the Treasury's proce- with a time deadline—which is questionable in dures for combining the input from the various itself—it would seem more appropriate to us that Reserve Banks around the country, and a fourth the Congress direct its requirements to the Treaphase will comprise the automated issuance of sury, which can in turn instruct us accordingly. securities to successful bidders. These latter A similar comment would apply to several phases should be completed in 1993 or 1994. matters covered in the proposed legislation, including not only auction automation but also the eligibility of bidders, experimentation with a COMMENT ON PROPOSED LEGISLATION single-price auction, and employment of continuous sale procedure for marketing short-term With respect to proposed legislation regarding securities. the conduct of Treasury auctions (H.R.4450), I We also welcome the committee's support for would like to make a few comments from the more open access to Treasury auctions. Indeed, standpoint of the Federal Reserve Bank of New that has been an important part of the motivation York. A major provision of this bill is to require for developing an automated system. The move the Federal Reserve to implement an automated toward more open access is also thoroughly Treasury auction by the end of this year. consistent with several changes in auction rules We welcome the support and encouragement that the Treasury has made in recent months. of your committee, and of others in the Con- This move includes permitting registered brokers gress, in this important effort. Speedy implemen- and dealers (as well as primary dealers and tation of automation is a high-priority matter for depository institutions) to submit bids on behalf Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 28 of customers and to bid without having to post a lieve are consistent with a broadening of access deposit, provided they have an autocharge agree- and maintenance of high integrity. We underment with a bank. Another recent change in stand and share congressional concern that the Treasury rules consistent with broadening auc- events of last year not impair public confidence tion access was the increase in the maximum in the auction process. However, we do not noncompetitive award on coupon-bearing issues. believe that additional legislation is needed to With all due respect, however, it does seem to achieve that result. At a minimum, the measures me that specific measures undertaken to imple- adopted in recent months should be given time to ment more open access are better left to Trea- work, and the automation plans now being desury discretion—to be sure, with appropriate vised and tested should be allowed to come to congressional oversight—rather than seeking to fruition on their expedited but prudent schedule. have specific aspects of open access mandated. If, at some point, new regulatory authority with The Federal Reserve, as well as the Treasury, respect to the conduct of Treasury finance is is deeply concerned that auction participants deemed necessary, we believe such authority is maintain the highest level of integrity in their more appropriately placed with the Treasury, to bidding activities. With active cooperation by the which the Congress has already given substantial Federal Reserve, the Treasury has developed regulatory responsibility for the U.S. governrevised standards for participation that we be- ment securities market. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

428 Announcements INTERIM REGULATION TO IMPLEMENT • Receives information on the condition of the FOREIGN BANK SUPERVISION foreign bank outside its home country, whether ENHANCEMENT ACT OF 1991 through examination, audit reports, or otherwise • Obtains information on the dealings and the relationships between the foreign bank and its The Federal Reserve Board issued on April 8, affiliates 1992, an interim regulation to carry out provisions of the Foreign Bank Supervision Enhancement Act • Obtains financial reports that permit analysis of 1991. of the condition of the foreign bank on a consolidated basis Although the interim regulation is effective • Evaluates prudential standards, such as capital immediately, the Board requested public comment adequacy, on a worldwide basis. over a sixty-day period on its provisions. The comment period ends June 15, after which the Board will review the interim regulation based on all The interim regulation also details the procecomments received and issue a final regulation. dures to be used in the filing of applications by foreign banks to operate in this country through a The act stems from a recommendation sent to the branch, agency, representative office, or commer- Congress last year during the Board's investigation cial lending company. of the Bank of Credit and Commerce International. The Board concluded that additional legislation In filing an application, a foreign bank is rewas needed to strengthen federal regulation and quired to describe applicable secrecy laws, if any, supervision of foreign bank operations in this in its home country that would restrict the provicountry. sion of information to the Board. If the restrictions are significant enough to impede the monitoring of As of December 1991, there were 304 foreign the foreign bank's operations, the Board could deny banks with operations in the United States, and the application. they had aggregate banking assets of $866 billion. The interim regulation also addresses the termi- A key mandatory standard in the law requires nation of offices of a foreign bank, hearing procethat a foreign bank applying to operate in the dures, examination of offices and affiliates of for- United States must be subject to comprehensive eign banks, the limitation on loans to one borrower, supervision or regulation by its home country and activities of state branches and agencies. authorities on a consolidated basis. It also must supply any information to the Board that is needed to assess the application adequately. The act also contains discretionary standards to be considered REVISIONS TO THE STAFF COMMENTARY by the Board in deciding on applications, and these ON REGULATION B are set forth in the regulation. In making a determination on consolidated home The Federal Reserve Board issued on April 7, country supervision, the interim regulation stipu- 1992, revisions to its staff commentary on Regulalates that the Board will assess, among other fac- tion B (Equal Credit Opportunity). tors, the extent to which the home country super- The revisions clarify the relationship between visor does the following: Regulation B and Regulation C, which implements the Home Mortgage Disclosure Act (HMDA). The • Ensures that the foreign bank has adequate clarifications address data collection on loan appliprocedures for monitoring and controlling its cations received by creditors through brokers or worldwide operations other persons. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

429 The revisions also state that use of the uniform PUBLICATION OF REVISED LISTS residential loan application form dated May 1991 OF MARGINABLE OTC STOCKS AND and prepared by the Federal Home Loan Mortgage OF FOREIGN MARGIN STOCKS Corporation and the Federal National Mortgage Association does not violate Regulation B. Credi- The Federal Reserve Board published on April 24, tors subject to HMDA may use the form as issued. 1992, a revised List of Marginable OTC Stocks (OTC List) for over-the-counter (OTC) stocks that are subject to its margin regulations. Also pub- INTERIM RULE TO AMEND REGULATION Y lished was the List of Foreign Margin Stocks (Foreign List) for foreign equity securities that are The Federal Reserve Board issued on April 8, subject to Regulation T (Credit by Brokers and 1992, an interim rule to carry out provisions of the Dealers). The lists are effective May 11, 1992, and Federal Deposit Insurance Corporation Improve- supersede the previous lists that were effective ment Act of 1991 that affect bank holding compa- February 10, 1992. nies and foreign banking organizations with opera- The Foreign List indicates those foreign equity tions in the United States. securities that are eligible for margin treatment at The interim rule amends Regulation Y (Bank broker-dealers. There were six additions to the Holding Companies and Change in Bank Control) Foreign List, which now contains 300 securities. and is effective immediately. The interim rule will The changes that have been made to the revised be reviewed by the Board at a later date after OTC List, which now contains 2,976 OTC stocks, the receipt of public comment. Public comment is are as follows: requested by June 15, 1992. The interim rule specifies additional factors that • Two hundred fourteen stocks have been inthe Federal Reserve must consider in acting on cluded for the first time, 199 under National Marapplications submitted under the Bank Holding ket System (NMS) designation. Company Act to acquire a bank. • Twenty-four stocks previously on the list have been removed for substantially failing to meet the requirements for continued listing. PROPOSED ACTIONS • Thirty-nine stocks have been removed for reasons such as listing on a national securities The Federal Reserve Board published for public exchange or involvement in an acquisition. comment on April 3,1992, a proposed new Regulation DD to implement the Truth in Savings Act. In general, the act and the proposed regulation require The OTC List is published by the Board for the depository institutions to provide consumers with information of lenders and the general public. It more information about their deposit accounts, includes all OTC securities designated by the Board including savings and checking accounts and pursuant to its established criteria as well as all certificates of deposit. Comment is requested by OTC stocks designated as NMS securities for June 10, 1992. which transaction reports are required to be made The Board on April 10, 1992, requested public pursuant to an effective transaction reporting plan. comment on proposed modifications to its risk- Additional OTC securities may be designated as based capital guidelines affecting the treatment of NMS securities in the interim between the Board's multifamily housing loans and certain collateral- quarterly publications and will be immediately ized transactions. The Board should receive com- marginable. The next revised list is scheduled for ments by May 15, 1992. publication in August 1992. The Board is also requesting public comment on Besides NMS-designated securities, the Board whether U.S. companies operating in the French will continue to monitor the market activity of government debt market have the same competitive other OTC stocks to determine which stocks meet opportunities as French companies in that market. the requirements for inclusion and continued inclu- Comments must be received by June 25, 1992. sion on the OTC List. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

430 Federal Reserve Bulletin • June 1992 CHANGES IN BOARD STAFF The Board also announced on May 11, 1992, the promotion of Kathleen M. O'Day from Assistant The Board of Governors has announced the resig- General Counsel to the position of Associate Gennation of Ricki Rhodarmar Tigert, Associate Gen- eral Counsel for International Banking. eral Counsel for International Banking, effective April 17, 1992. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

431 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON FEBRUARY 4-5, 1992 equipment. By contrast, the output of other types of business equipment had strengthened, particularly in the office and computing component, and the 1. Domestic Policy Directive production of construction supplies and a variety of nondurable goods had increased. Total industrial The information reviewed at this meeting sug- capacity utilization declined further in December gested that economic activity remained sluggish. but remained somewhat above its low of last Spending for housing and exports was rising, but March. retail sales had been weak, and nonresidential con- Consumer spending had been weak on balance struction continued to hold down overall invest- in recent months amid continuing indications of ment expenditures. Nonfarm payroll employment depressed consumer confidence and essentially no had changed little in December, and industrial pro- growth in disposable income. Nominal retail sales duction had edged lower in November and Decem- were estimated to have declined appreciably in ber as business firms acted to hold down invento- November and December, and for the fourth quarries in the face of slack final demand. Wage and ter decreases in sales were widespread among genprice increases continued to trend downward. eral merchandise, apparel, and furniture and appli- Total nonfarm payroll employment was about ance stores. Against a background of improved unchanged in December after a large decline in consumer attitudes toward homebuying and the November. Manufacturing jobs fell in December strongest quarterly pace of new home sales since for a fourth consecutive month, with nearly all of the spring of 1990, single-family housing starts the losses occurring in durable goods industries. rose in December from an upward-revised Novem- Employment in retail and wholesale trade con- ber level. With high vacancy rates persisting for tracted again, while employment in construction, multifamily units, starts of such units remained which had been depressed by unseasonably severe near their May 1991 low. weather in November, registered a small rise. New Business fixed investment appeared to have hires in December were concentrated in health fallen in the fourth quarter as a small rise in equipservices and local governments. The civilian unem- ment spending was offset by further steep reducployment rate rose to 7.1 percent in December, its tions in nonresidential construction. After little high for the year. change in the third quarter, shipments of nonde- Industrial production declined slightly in Decem- fense capital goods picked up in the fourth quarter, ber and was unchanged on balance since July; the principally because of a surge in outlays for comlimited information available suggested that pro- puters. Recent data on orders suggested little duction might have contracted appreciably further growth in business spending for equipment over in January. Over the November-December period, the near term. Office and other commercial conoutput was held down in part by reduced produc- struction activity weakened substantially further in tion of motor vehicles; in addition, unseasonably November. The persistently low occupancy rates warm weather led to lower production of electricity for commercial structures, and the continuing and natural gas. Additional restraints on output downtrend in construction contracts and appraisal included the depressing effects of a strike at a values of office properties, suggested that nonmajor supplier of industrial equipment and persist- residential construction activity would remain ing declines in the production of defense and space depressed for some time. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

432 Federal Reserve Bulletin • June 1992 Business inventories rose noticeably over the Accordingly, the directive indicated that in the months of September through November after sub- context of the Committee's long-run objectives for stantial liquidation earlier in the year. At the retail price stability and sustainable economic growth, level, inventories continued to build, and inventory- and giving careful consideration to economic, to-sales ratios rose for most types of retailers, financial, and monetary developments, slightly although the pace of accumulation appeared to greater reserve restraint might be acceptable or have slowed in November. Wholesale inventories somewhat lesser reserve restraint would be acceptexpanded sharply in October and November; for able in the intermeeting period. The reserve condimost types of distributors, inventory-to-sales ratios tions contemplated under this directive were had moved up in recent months but had remained expected to be consistent with growth of M2 and well below their highs of a year ago. By contrast, M3 at annual rates of around 3 percent and 1 Vi permanufacturing stocks in the aggregate continued to cent respectively over the period from November decline, despite slowing shipments that led to through March. buildups in stocks of finished goods in some indus- Shortly after the meeting, with incoming infortries. The ratio of stocks to sales in manufacturing mation continuing to point to a very sluggish econremained on a downtrend that began in late 1990. omy, receding inflationary pressures, and slow The nominal U.S. merchandise trade deficit nar- growth in the broader monetary aggregates, open rowed considerably in November. For the October- market operations were directed toward a substan- November period, a sizable rise in exports that was tial easing of conditions in reserve markets. This only partly offset by an increase in imports brought step was taken in conjunction with a reduction in a substantial improvement in the trade balance the discount rate from 4l/i to 3l/i percent that was from the third-quarter rate. The strength in exports, approved by the Board of Governors effective which may have been associated in part with a December 20. Two technical reductions were made bunching of shipments, was concentrated in air- to expected levels of adjustment plus seasonal borcraft, machinery, consumer goods, and agricultural rowing during the intermeeting period to reflect the products. Among imports, most of the rise was in downward drift in seasonal borrowing in early winconsumer goods. The available data on economic ter. Adjustment plus seasonal borrowing averaged activity in the major foreign industrial countries a little above expected levels over most of the suggested that relatively weak growth had contin- intermeeting interval, although very large adjustued into the fourth quarter. In most of these coun- ment borrowing occurred on the settlement day of tries, with output moving closer to or further below one reserve maintenance period as a result of a potential, inflationary pressures appeared to have reserve shortfall. At the beginning of the intermeeteased somewhat further. ing period, the federal funds rate averaged around Producer prices of finished goods declined in 4Vi percent; after the easing of reserve conditions, December; prices of food and energy moved lower, the funds rate dipped to a little below 4 lA percent while prices of other finished goods rose at about through the first week of the new year and then the reduced pace of earlier months in the year. At dropped further to around 4 percent as relatively the consumer level, prices of nonfood, non-energy mild year-end pressures abated. items increased in December at the moderate rate In response to the easing in reserve markets, evident since the first quarter of 1991 and well other short-term interest rates declined about the below the pace for 1990. Average hourly earnings same amount as the federal funds rate, while rose more rapidly in December than in prior longer-term rates fell somewhat less. Rates on months; however, for the year as a whole, this intermediate- and long-term securities continued to earnings measure increased at a considerably decline through the early part of 1992 as incoming slower pace than in 1990. data seemed to indicate further economic weak- At its meeting on December 17, 1991, the Com- ness. However, these rates began to firm again by mittee adopted a directive that called for initially mid-January; over the latter part of the intermeetmaintaining the existing degree of pressure on ing period, concerns mounted with regard to curreserve positions but that included a marked bias rent and prospective supplies of federal debt offertoward easing during the intermeeting period. ings, especially in the context of proposals for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee 433 fiscal stimulus, and market participants reacted to stantial pickup in residential construction, notably evidence that tended to suggest an improved eco- of single-family homes. Subsequently, however, nomic outlook and consequently a reduced pros- the cumulative effects of earlier declines in interest pect of further monetary easing. For the inter- rates would be expected to lead to a moderate meeting period as a whole, interest rates on pickup in growth, with the risks to that trajectory intermediate-term Treasury issues were up some- for the economy being viewed as about in balance. what, while rates on long-term Treasury and pri- Stronger consumer spending, a rise in business vate instruments registered mixed changes. Follow- equipment investment, and a swing from liquidaing the 1 percentage point drop in the discount rate, tion to accumulation of inventories were projected the prime rate was reduced by the same amount, to provide most of the impetus for faster growth. to 6V2 percent. Broad stock price indexes rose The retarding effects of depressed nonresidential substantially. construction activity and of the ongoing restructur- In foreign exchange markets, the trade-weighted ing of household and business balance sheets were value of the dollar in terms of the other G-10 expected to lessen gradually as the expansion procurrencies rose slightly on balance over the inter- gressed. The potential nature and size of any stimumeeting period. The dollar declined early in the lative fiscal package remained highly uncertain, period, particularly against the German mark, in and the staff projection did not incorporate major response to the easing of monetary policy in the new fiscal initiatives. The substantial though dimin- United States and the nearly concurrent rise in ishing slack expected in labor and product markets official German lending rates. In January, however, in coming quarters was projected to induce further the dollar rebounded sharply amid market specula- declines in the underlying rate of inflation. tion that interest rates in the United States might In their discussion of the economic situation and not decline further and that interest rates in Ger- outlook, Committee members continued to view many might have peaked. On balance, the dollar some strengthening in aggregate demand and overweakened appreciably against the Japanese yen all business activity as the most likely prospect over the intermeeting period in response to con- during the months ahead, with the expansion setcerns about trade imbalances between the two tling into a pattern of moderate growth by the countries and to official intervention during the second half of the year. The available information period in support of the yen. suggested that the sluggish performance of the After accelerating somewhat in the fourth quar- economy was continuing in early 1992, though ter from a very weak performance earlier, growth there were indications, still very tentative and of M2 and M3 appeared to have slowed in January, largely anecdotal, of some improvement. Nonethepartly reflecting temporary distortions in demand less, the decline in interest rates over the second deposits and money market funds around year-end. half of 1991 accompanied by the appreciable The slower growth also seemed to reflect the attrac- progress achieved by many financial institutions, tion of relatively high bond yields and persistently business firms, and households in improving their rising prices in the stock market at a time when balance sheets appeared to have established a basis many banking institutions were aggressively reduc- for a pickup in final demand. The timing and ing offering rates on deposits. For the year 1991, strength of an upturn remained subject to substanthe expansion of both M2 and M3 was estimated to tial uncertainties, and the need for further policy have been at rates a little above the lower ends of stimulus to foster a satisfactory economic expanthe Committee's ranges, while growth of total sion could not be ruled out. The uncertainties arose domestic nonfinancial debt appeared to have been in part from the largely unpredictable course of marginally above the lower end of its monitoring fiscal policy, the still depressed state of business range. and consumer confidence, the strength and effects of continuing efforts to shore up balance sheets, The staff projection prepared for this meeting and the extent to which economic growth might pointed to a recovery in economic activity. In the slow abroad. With regard to the outlook for inflanear term, a small overhang of inventories and tion, the available data and anecdotal information depressed confidence would tend to limit overall about recent increases in costs and prices reflected increases in spending despite indications of a sub- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

434 Federal Reserve Bulletin • June 1992 quite promising developments, and the members improving equity positions. These efforts together continued to anticipate appreciable progress toward with lower market interest rates already appeared a lower core rate of inflation. to have induced significant progress toward reduc- In keeping with the practice at meetings when ing debt exposures and debt servicing costs, but the the Committee establishes its long-run ranges for financial restructuring process was still under way growth of the money and debt aggregates, the and the extent to which it would continue to inhibit Committee members and Federal Reserve Bank spending remained unclear. A further source of presidents not currently serving as members had uncertainty related to the ongoing and widespread prepared projections of economic activity, the rate adjustments in corporate business structures, inof unemployment, and inflation for the year 1992. cluding downsizings, that were aimed at improving Measured from the fourth quarter of 1991 to the the competitive efficiency of business firms. While fourth quarter of 1992, the forecasts for growth of these restructuring activities were serving to real GDP had a central tendency of \3A to 2Vi per- strengthen the long-run competitive position of the cent. Projections of the civilian rate of unemploy- economy, they tended for the present to inhibit ment in the fourth quarter of 1992 were concen- overall spending, both directly and indirectly trated in a range of 63/4 to 7 percent. These forecasts through the adverse effects of widely publicized pointed to rates of resource utilization that seemed job cutbacks on consumer sentiment. consistent with appreciable progress toward price Many of the members observed that fiscal policy stability. Projections of the increase in the CPI developments were adding to the uncertainties in from the fourth quarter of 1991 to the fourth quar- the economic outlook. At the moment, the potential ter of 1992 were centered in a range of 3 to outcome of fiscal initiatives by the Administration 3V2 percent; this range compared with a realized and the Congress was unknown. In the view of at increase in the CPI of 3 percent in 1991, but the least some members, a limited package of shortresult for 1991 had been heavily influenced by the term fiscal stimulus measures implemented relasharp decline in oil prices, so the members' fore- tively early this year could have a favorable effect casts represented a significant decrease in the on business activity. On the other hand, adoption of underlying rate of inflation. Forecasts of growth of fiscal measures involving substantial stimulus, nominal GDP had a central tendency of AV2 to which would further impede the prospects for long- 53/4 percent for 1992. term budgetary balance, would be likely to have The members acknowledged that there were sub- strongly adverse repercussions on financial markets stantial risks of an outcome outside the central and perhaps on business and consumer confidence. tendency of their forecasts for economic activity. Indeed, concerns about the outlook for fiscal policy Views differed with regard to the most likely direc- might well have been an important factor behind tion of any deviation, but many of the members the rise in long-term bond yields this year. It also saw those risks as being in better balance than was noted that uncertainty about the exact provipreviously. Among the uncertainties in the outlook sions of the fiscal program that might eventually was the extent to which financial intermediaries be adopted was causing some businesses to defer would continue to restrict their extensions of credit investment decisions. to less than prime borrowers. In this connection, a In their review of business conditions in different number of members reported on anecdotal indica- parts of the country, members again reported on tions that banking institutions in various parts of mixed patterns of activity in recent months, and the country appeared to have become somewhat they described overall conditions in the different more willing lenders, even though overall survey regions as ranging from slightly weaker to slightly results and many banker comments did not indicate stronger. Although an expected upturn in general any easing in credit standards. A second source of business activity had not materialized thus far, uncertainty related to the continuing efforts of busi- many members sensed some improvement in business firms and households to strengthen their bal- ness attitudes. Notwithstanding the persistence of ance sheets and in the process to divert some of gloomy consumer sentiment, contacts among retailtheir corporate cash flows or disposable personal ers indicated that many had experienced somewhat incomes from spending to reducing debt and better sales in recent weeks than they had antici- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee 435 pated earlier, though reports from some parts of the In keeping with the requirements of the Full country pointed to significant exceptions. Members Employment and Balanced Growth Act of 1978 commented that the pickup in sales of single- (the Humphrey-Hawkins Act), the Committee at family homes together with reduced interest bur- this meeting reviewed the ranges for growth of the dens stemming from home mortgage refinancings monetary and debt aggregates in 1992 that it had would tend to stimulate consumer spending in the established on a tentative basis in July 1991. The quarters ahead. Over the near term, production tentative ranges included expansion of 2l/i to activity was likely to be inhibited to some degree 6V2 percent for M2 and 1 to 5 percent for M3, by the moderate buildup that had occurred late in measured from the fourth quarter of 1991 to the 1991 in wholesale and retail inventories. As the fourth quarter of 1992. The monitoring range for year progressed, however, a pickup in consumer growth of total domestic nonfinancial debt had spending probably would encourage some increase been set provisionally at 4V2 to 8V2 percent for in inventory investment. Likewise, cautious busi- 1992. All of these ranges were unchanged from ness attitudes along with excess capacity in several those for 1991 that the Committee had set in Februkey industries and the ongoing efforts to improve ary and reaffirmed in July of last year. balance sheets would limit the growth in business In the Committee's discussion, a majority of the spending for plant and equipment for some period members indicated a preference for affirming the of time, probably until an upturn in final demand ranges for 1992 that had been established on a was well under way. The prospects for commercial tentative basis in July. While those ranges were construction activity remained severely constrained acceptable to all the members, several expressed a by high vacancy rates in many parts of the country. preference for lowering them. On the foreign side, the outlook for relatively slug- In formulating the Committee's objectives for gish economic growth in several key industrial 1992, members stressed that policy needed to pronations implied more limited growth in U.S. mote sustainable expansion in economic activity exports; in addition, if sentiment favoring more while consolidating and extending gains against protectionism were to gather added strength in the inflation. Both objectives were attainable, especontext of a weak domestic economy, new trade cially in light of the degree of slack in the econrestrictions might be imposed that would have omy. However, the translation of these objectives adverse effects. into specific money growth ranges was compli- With regard to the prospects for inflation, mem- cated by questions about the relation of the monebers observed that core inflation was continuing tary aggregates to spending. Since 1989, the level to recede, and in the context of their outlook of M2 had fallen increasingly short of levels that for relatively limited pressures on production past historical relationships with nominal GDP and resources, some commented that they would not market interest rates would have indicated. Insofar view an inflation result below the central tendency as could be judged at this point, retention of a 2xh of the members' projections as a surprising out- to 6V2 percent range for M2 should provide adecome. Developments having favorable implications quate leeway and operational flexibility to accomfor inflation included an extended period of sub- modate a satisfactory economic performance. dued monetary growth, highly competitive condi- Demand for M2 balances relative to income would tions in domestic and international markets for continue to be damped if, as appeared likely, banks numerous products, and productivity gains associ- and thrifts were to reduce further their offering ated with business restructuring activities that were rates on deposits in lagged response to earlier adding to the usual operating efficiencies achieved declines in market rates. The reductions in offering during the early quarters of cyclical upswings. The rates could be pronounced if banking institutions members did not rule out the possibility that unan- maintained their cautious lending policies and ticipated surges in energy or food prices might many prime borrowers continued to channel a temporarily arrest or reverse progress toward price larger-than-usual share of their financing needs stability, but they assumed that such prices would toward longer-term market sources of funds and move in line with most other prices in the year away from depository institutions. Under those cirahead. cumstances, velocity could well rise appreciably Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

436 Federal Reserve Bulletin • June 1992 and relatively modest M2 growth would not neces- ultimate objective of price level stability. However, sarily be inconsistent with a satisfactory economic in the view of other members a reduction at this expansion. On the other hand, the continuing time could be interpreted as an indication that the improvement in the balance sheets and capital posi- Committee might not be willing to supply enough tions of depository institutions might prompt them liquidity to foster an appreciable strengthening in as a group to become more willing lenders and thus the economy in 1992, especially if a fairly rapid to bid more aggressively for deposits to fund addi- increase in M2 were needed to compensate for tional lending. In this case faster growth of M2, relatively slow money growth in 1991. No member perhaps toward the upper end of the tentative range, advocated higher monetary growth ranges, but a might be desirable. On balance, the members number suggested that the emergence of more norbelieved that adoption of the tentative M2 range for mal patterns of monetary velocity in association 1992 should allow sufficient room for the likely with an economic performance in line with the range of developments in the intermediation pro- central tendency of the members' projections might cess. Nonetheless, the substantial uncertainties sur- appropriately result in M2 growth in the upper half rounding the outlook for M2 suggested that the of the Committee's range. Committee would have to approach monetary Concerns about the implications of slow money developments with a great deal of flexibility over growth in 1991 and the possibility of more normal the year ahead. velocity patterns in 1992 prompted some members An unchanged target range for M3 also was seen to suggest a modification of the current procedure as likely to provide adequate room for a desirable for constructing yearly monetary growth ranges. rate of growth in this aggregate in the context of The modification would involve linking the ranges accommodating the Committee's broad policy for the current year to those for the previous year objectives. The growth of M3 probably would con- rather than to the actual outcomes for that year. The tinue to be affected to a greater extent than that of new approach would place monetary targeting in a M2 by the diversion of credit demands to sources multi-year context with the objective of constrainoutside depository institutions and by the ongoing ing money growth to a desired range over a longer contraction of the thrift industry in conjunction horizon. Such an approach would have advantages with the activities of the Resolution Trust Corpora- over current procedures if the relationship between tion. Accordingly, a lower range for M3 than for money growth and spending could be predicted M2 appeared to remain appropriate. Retention of with confidence. In the course of the Committee's an unchanged monitoring range for growth in non- discussion, however, a number of members refinancial debt also seemed warranted for 1992, ferred to questions that had arisen about that relaeven though the expansion in such debt was likely tionship in recent years as thrift institutions were to accelerate somewhat from a very sluggish pace closed and credit flows increasingly bypassed in 1991, mainly as a result of more rapid growth depository institutions. A satisfactory performance in the federal debt. Nonfederal debt also might of the economy in 1992 might well be accompaincrease a little faster this year, but the pickup was nied by a rise in velocity, although there was conlikely to be limited by the still cautious attitudes of siderable uncertainty about such an outcome. households and businesses toward new debt. Thus, Should velocity in fact rise, the acceleration of the the 1991 range for nonfinancial debt should com- broader aggregates implied by this alternative fortably encompass an expansion of credit to sup- approach and the associated easing of reserve conport stronger spending in 1992. ditions and short-term interest rates might not be consistent with the Committee's objectives. Given Members who preferred a lower range for M2 the uncertainties about velocity, a broad array of believed that a reduction was desirable at this time indicators, in addition to money, would need to to underscore the Committee's commitment to its continue to be assessed in determining the approlong-run objective of price stability. While the priate stance of the Committee in providing unchanged range supported by the majority might reserves. Members concluded that the proposal provide the flexibility needed for a desirable antishould be studied further and reconsidered later in inflationary policy in the year ahead, a lower range light of changing circumstances. would be more consistent with the Committee's Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee 437 At the conclusion of the Committee's discussion, to remain alert to the possibility of developments all of the members indicated that they favored or that might require additional easing. could accept the ranges for 1992 that the Commit- In these circumstances, a majority of the memtee had established on a tentative basis at its meet- bers expressed a preference for a directive that was ing in July 1991. In keeping with the Committee's biased toward some easing. The lagged effects of usual procedures under the Humphrey-Hawkins earlier easing actions could prove to be less stimu- Act, the ranges would be reviewed at midyear, or lative than anticipated, in part because of ongoing sooner if deemed necessary, in light of the behavior balance sheet restructuring activities. The persisof the aggregates and ongoing economic and finan- tence of a weak economy might well have especial developments. The Committee approved the cially severe consequences, and, in the view of following paragraph for inclusion in the domestic some members, signs of such an outcome would policy directive: call for prompt action. However, many members who supported a bias toward ease also stipulated The Federal Open Market Committee seeks monetary that there should not be an unusually strong preand financial conditions that will foster price stability sumption that any easing would in fact be impleand promote sustainable growth in output. In furtherance mented during the intermeeting period ahead: The of these objectives, the Committee at this meeting estab- Committee should ease only in response to cumulished ranges for growth of M2 and M3 of 2Vi to lating evidence that economic activity was not 6V2 percent and 1 to 5 percent, respectively, measured from the fourth quarter of 1991 to the fourth quarter of picking up or that monetary growth was falling 1992. The monitoring range for growth of total domestic appreciably short of current expectations. A few nonfinancial debt was set at AV2 to 8V2 percent for the members, while not ruling out the possible need for year. With regard to M3, the Committee anticipated that further easing, preferred not to bias the directive in the ongoing restructuring of depository institutions either direction. In this view, more emphasis would continue to depress the growth of this aggregate relative to spending and total credit. The behavior of the needed to be put on the inflationary risks of overmonetary aggregates will continue to be evaluated in the reacting to the current weakness in the economy, light of progress toward price level stability, movements and a symmetrical directive would require more in their velocities, and developments in the economy and persuasive evidence of the need for some easing financial markets. before action was taken. With regard to the outlook for monetary expan- Votes for this action: Messrs. Greenspan, Corrigan, Angell, Hendricks, Hoenig, Kelley, LaWare, Lindsey, sion, some members expressed concern about the Melzer, Mullins, Ms. Phillips, and Mr. Syron. Votes relatively sluggish growth of the broader aggreagainst this action: None. gates. While the most recent data suggested some pickup in M2 growth, the behavior of that aggre- In the Committee's discussion of policy for the gate had been erratic in recent months and it was period immediately ahead, all of the members difficult to discern its underlying trend. According favored or found acceptable a proposal to maintain to a staff analysis prepared for this meeting, the unchanged conditions in reserve markets and to growth of M2 and M3 could be expected to accelerbias the directive toward possible easing during the ate somewhat in the period ahead, given current intermeeting period. In support of this policy, mem- conditions in reserve markets and some projected bers observed that reserve conditions had been strengthening in the economy. However, expansion eased substantially over the past several months, of M2 probably would continue to be restrained by including the easing undertaken in the latter part of the aggressive reductions by depository institutions December, and that much of the stimulus from in their offering rates on deposit components of this recent policy actions had yet to be felt in the aggregate and the continuation of related shifts of economy. The members generally agreed that M2 funds into higher-yielding capital market enough monetary stimulus probably had been instruments. In addition, the expected pickup in the implemented to foster the desired upturn in eco- pace of RTC resolutions over the balance of the first quarter would tend to moderate the growth of nomic activity without further policy moves. None- M2 and especially M3. To the extent that subdued theless, the high degree of uncertainty surrounding growth of the broader aggregates were to reflect the outlook suggested that the Committee needed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

438 Federal Reserve Bulletin • June 1992 such special influences, there would not be signifi- quarter rate. Wage and price increases have continued to cant adverse implications for the overall perfor- trend downward. Short-term interest rates have declined appreciably mance of the economy. Moreover, in the view of since the Committee meeting on December 17, while some members, the very considerable strength of longer-term rates have registered mixed changes. The narrow measures of money and reserves also Board of Governors approved a reduction in the discount tended to attenuate concerns about the possibly rate from 4]/i to 3lA percent on December 20. In foreign inadequate expansion of the broader monetary exchange markets, the trade-weighted value of the dollar in terms of the other G-10 currencies rose slightly on aggregates; indeed, in at least one view, the rapid balance over the intermeeting period. growth of narrow money would become a worri- After accelerating somewhat in the fourth quarter, M2 some development were it to persist. The members and M3 slowed in January, partly reflecting temporary generally concluded, however, that somewhat faster distortions around year-end. For the year 1991, the growth in the broader aggregates would be a wel- expansion of both M2 and M3 is estimated to have been at rates a little above the lower ends of the Committee's come development. ranges. Growth of total domestic nonfinancial debt At the conclusion of the Committee's discussion, appears to have been marginally above the lower end of all of the members indicated that they were pre- the Committee's monitoring range for the year. pared to vote for a directive that called for main- The Federal Open Market Committee seeks monetary taining the existing degree of pressure on reserve and financial conditions that will foster price stability and promote sustainable growth in output. In furtherpositions. The members also noted their preference ance of these objectives, the Committee at this meeting for or acceptance of a directive that included some established ranges for growth of M2 and M3 of 1xh to bias toward possible easing during the intermeeting 6V2 percent and 1 to 5 percent, respectively, measured period. Accordingly, in the context of the Commit- from the fourth quarter of 1991 to the fourth quarter of tee's long-run objectives for price stability and 1992. The monitoring range for growth of total domestic nonfinancial debt was set at 4Vi to 8V2 percent for the sustainable economic growth, and giving careful year. With regard to M3, the Committee anticipated that consideration to economic, financial, and monetary the ongoing restructuring of depository institutions developments, slightly greater reserve restraint would continue to depress the growth of this aggregate might be acceptable or slightly lesser reserve relative to spending and total credit. The behavior of the restraint would be acceptable during the intermeet- monetary aggregates will continue to be evaluated in the light of progress toward price level stability, movements ing period. The reserve conditions contemplated at in their velocities, and developments in the economy and this meeting were expected to be consistent with financial markets. growth of M2 and M3 at annual rates of around In the implementation of policy for the immediate 3 percent and \V.i percent respectively over the future, the Committee seeks to maintain the existing three-month period from December through March. degree of pressure on reserve positions. In the context of the Committee's long-run objectives for price stability At the conclusion of the meeting the following and sustainable economic growth, and giving careful domestic policy directive was issued to the Federal consideration to economic, financial, and monetary devel- Reserve Bank of New York: opments, slightly greater reserve restraint might or slightly lesser reserve restraint would be acceptable in the intermeeting period. The contemplated reserve con- The information reviewed at this meeting suggests ditions are expected to be consistent with growth of M2 that economic activity has remained sluggish. Total non- and M3 over the period from December through March farm payroll employment was little changed in Decem- at annual rates of about 3 and 1V2 percent, respectively. ber, and the civilian unemployment rate rose to 7.1 percent. Industrial production fell slightly in November and Votes for this action: Messrs. Greenspan, Corrigan, December, partly reflecting a sizable drop in motor vehi- Angell, Hendricks, Hoenig, Kelley, LaWare, Lindsey, cle assemblies. Consumer spending has been weak on Melzer, Mullins, Ms. Phillips, and Mr. Syron. Votes balance in recent months amid continuing indications of against this action: None. depressed consumer confidence and essentially no growth in disposable income. Demand for business equipment has been uneven, while nonresidential con- 2. AGREEMENT TO "WAREHOUSE" FOREIGN struction has remained in a steep decline. Single-family housing starts continued to recover in December. The CURRENCIES nominal U.S. merchandise trade deficit narrowed in November, and for October-November combined the On February 5, 1991, the Committee had approved trade balance improved substantially from the third- a reduction from $15 billion to $10 billion in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee 439 amount of eligible foreign currencies that the Sys- 1990, but by the end of August 1991 they had been tem was prepared to "warehouse" for the Treasury cut back to their current level of $2.0 billion. and the Exchange Stabilization Fund (ESF). The Accordingly, the new $5.0 billion ceiling was purpose of the warehousing facility is to supple- expected to provide an adequate cushion of unused ment the U.S. dollar resources of the Treasury and capacity and, thus, to maintain operational flexithe ESF for financing their purchases of foreign bility to respond on short notice to unanticipated currencies and related international operations. developments. At this meeting, the Committee agreed to reduce the limit further to $5.0 billion, a ceiling that earlier Votes for this action: Messrs. Greenspan, Corrigan, Angell, Hendricks, Hoenig, Kelley, LaWare, Lindsey, had been in place for many years. System holdings Melzer, Mullins, Ms. Phillips, and Mr. Syron. Votes of foreign currencies under the warehousing facilagainst this action: None. ity had risen to a peak of $9.0 billion in March Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

441 Legal Developments FINAL RULE—AMENDMENTS TO REGULATIONS Colorocs Corporation: $.05 par common G, T, U, AND X Corporated Capital Resources, Inc.: $.025 par common The Board of Governors is amending 12 C.F.R. Parts 207, 220, 221, and 224, its Regulations G, T, U, and X Eastco Industrial Safety Corp.: $.01 par common (Securities Credit Transactions; List of Marginable Environmental Control Group, Inc.: $.10 par common OTC Stocks; and List of Foreign Margin Stocks). The List of Marginable OTC Stocks (OTC List) is com- Hammond Company, The: No par common prised of stocks traded over-the-counter (OTC) in the Heritage Bancorp, Inc.: $.10 par common United States that have been determined by the Board of Governors of the Federal Reserve System to be Jacor Communications, Inc.: No par common subject to the margin requirements under certain Fed- Jones Intercable, Inc.: 7.5% convertible subordinated eral Reserve regulations. The List of Foreign Margin debentures Stocks (Foreign List) represents foreign equity securities that have met the Board's eligibility criteria Metro-Tel Corporation: $.025 par common under Regulation T. The OTC List and the Foreign Moniterm Corporation: $.025 par common List are published four times a year by the Board. This document sets forth additions to or deletions from the NAC RE Corp.: 6!/4% convertible subordinated previous OTC List and additions to the previous debentures Foreign List. Both Lists were last published on January 27, 1992 (57 Federal Register 2997) and effective Production Operators Corp.: 9.25% convertible suboron February 10, 1992. dinated debentures Effective May 11, 1992, accordingly, pursuant to the authority of sections 7 and 23 of the Securities Ex- Stansbury Holdings Corporation: $.25 par common change Act of 1934, as amended (15 U.S.C. 78g and Suburban Bankshares, Inc. (Florida): Class A, $.10 78w), and in accordance with 12 C.F.R. 207.2(k) and par common 207.6 (Regulation G), 12 C.F.R. 220.2(u) and 220.17 Sudbury Inc.: $.01 par common (Regulation T), and 12 C.F.R. 221.2G) and 221.7 (Reg- Sulcus Computer Corporation: Series A, no par reulation U), there is set forth below a listing of deletions deemable convertible preferred; Class B, Warrants from and additions to the OTC List, and additions to (expire 06-30-92) the Foreign List. Deletions from the List of Marginable OTC Stocks Removed for Listing on a National Stocks Securities Exchange or Being Involved in an Acquisition Stocks Removed for Failing Continued Listing Requirements Air Wis Services, Inc.: $.10 par common Allwaste, Inc.: $.01 par common Air Methods Corporation: Warrants (expire 08-28-92) Alta Health Strategies, Inc.: $.01 par common America West Airlines, Inc.: $.25 par common; 7.5% America First Federally Guaranteed Mortgage Fund 2 convertible subordinated debentures Limited Partnership: Exchangeable units of limited Amith Bancorp Inc.: $2.50 par common partnership interest American Insured Mortgage Investors, Series 85 Lim- Belmoral Mines Ltd.: No par common ited Partnership: Depository units of limited part- Bonneville Pacific Corporation: $.01 par common nership interest Broadway Financial Corporation: No par common Ameritrust Corporation: $1.66% par common Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

442 Federal Reserve Bulletin • June 1992 Bindley Western Industries, Inc.: 85/s% convertible Waterhouse Investor Services, Inc.: $.01 par common subordinated debentures Workman's Bancorp, Inc.: $1.00 par common Care Group Inc., The: Warrants (expire 04-24-92) Citizens Utilities Company: Series A, $.25 par com- Additions to the List of Marginable OTC mon; Series B, $.25 par common Stocks Clarcor Inc.: $1.00 par common Community Bancorp Inc. (Pennsylvania): $.01 par Abaxis, Inc.: No par common common Abbey Healthcare Group Incorporated: $.001 par Compuchem Corp.: $.01 par common common Cytrx Corporation: Class B, Warrants Access Health Marketing, Inc.: $.001 par common (expire 11-09-92) Adesa Corporation: No par common Advacare, Inc.: $.01 par common E'Town Corporation: No par common Advantage Bancorp, Inc. (Wisconsin): $.01 par com- Electronic Data Technologies: $.01 par common mon Envirosafe Services, Inc.: $.01 par common Advantage Health Corporation: $.01 par common Affinity Biotech, Inc.: $.01 par common AGCO Corporation: $.01 par common Fedelity Bancshares, Inc.: $1.00 par common Agridyne Technologies, Inc.: $.06 par common First City Bancorp, Inc.: No par common Albank Financial Corporation: $.01 par common First Illinois Corporation: $1.00 par common America Online, Inc.: $.01 par common First Interstate of Iowa, Inc.: $1.00 par common American Biogenetic Sciences, Inc.: Class A, $.001 Florida Employers Insurance Co.: $.01 par common par common American Business Information, Inc.: $.0025 par com- GNW Financial Corporation: $.01 par common mon American United Global, Inc.: $.01 par common Inter Federal Savings Bank (Tennessee): $1.00 par Amylin Pharmaceuticals, Inc.: $.001 par common common Aqua Buoy Corporation: $.001 par common Arch Communications Group, Inc.: $.01 par common Long Island City Financial Corporation, The: $.01 par Armstrong Pharmaceuticals, Inc.: $.08 par common common Back Bay Restaurant Group, Inc.: $.01 par common Merry Lane & Investment Company, Inc.: No par Belden & Blake Energy Corporation: No par common common Bell Sports Corporation: $.01 par common Biospecifics Technologies Corporation: $.001 par North Carolina Natural Gas Corporation: $2.50 par common common Biosys: No par common Bisys Group, Inc., The: $.02 par common Occupational Urgent Care Health Systems, Inc.: No Box Energy Corporation: Class A voting, $1.00 par par common common; Class B non-voting, $1.00 par common Orthopedic Services, Inc.: $.01 par common BPI Environmental, Inc.: Series A, $.01 par redeemable convertible preferred Piper Jaffray Incorporated: $1.00 par common Braun's Fashions Corporation: $.01 par common Buttrey Food and Drug Stores Company: $.01 par Relm Communications, Inc.: No par common common Sanford Corporation: $.01 par common California Micro Device Corporation: Warrants (expire 04-20-97) Talman Home Federal Savings and Loan Association Calumet Bancorp, Inc.: $.01 par common of Illinois: $.01 par common Canstar Sports, Inc.: No par common Teradata Corporation: $.01 par common Cardiopulmonics, Inc.: $.01 par common Cavco Industries, Inc.: $.10 par common Valley Capital Corporation: $1.00 par common CEL-SCI Corporation: $.001 par common; Warrants Value Merchants, Inc.: $.01 par common (expire 02-06-95) Vencor, Incorporated: $.25 par common Cellcor, Inc.: $.01 par common Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 443 Cellular Communications International, Inc.: $.01 par First Commerce Corporation: $25.00 par cumulative common preferred Cellular Communications of Puerto Rico, Inc.: $.01 First Financial Corporation (Indiana): $.25 par compar common mon Cellular Technical Services Company, Inc.: $.001 par First Financial Corporation of Western Maryland: common $1.00 par common Chemtrak Incorporated: $.001 par common First Mortgage Corporation: No par common Chipsoft, Inc.: Class A, $.01 par common First Western Corporation: $.01 par common Chromcraft Revington, Inc.: $.01 par common Fleet Call, Inc.: Class A, $.001 par common Chronimed, Inc.: $.01 par common Forstmann & Company, Inc.: $.001 par common Citfed Bancorp, Inc.: $.01 par common Fourth Financial Corporation: Depository Shares rep- Coastal Banc Savings Association: $.00017 par com- resenting Vi6 cumulative convertible preferred A mon stock Collins Industries, Inc.: $.10 par common Frame Technology Corporation: No par common Communications & Entertainment Corporation: $.01 Fred's, Inc.: No par common par common; Class A, $.05 par common Comtech Telecommunications Corp.: $.10 par com- Gates/FA Distributing, Inc.: $.01 par common mon Gibraltar Packaging Group, Inc.: $.01 par common Corvas International, Inc.: No par common Gilead Sciences, Inc.: $.001 par common Cosmetic Center, Inc., The: Class A, $.01 par common Health O Meter Products, Inc.: $.01 par common Craftmade International, Inc.: $.20 par common Healthwatch, Inc.: Series A, Warrants Curaflex Health Services, Inc.: $.01 par common (expire 04-30-93); Series B, Warrants Cytorad Incorporated: Units (expire 01-31-97) (expire 04-30-94) Cytotherapeutics, Inc.: $.01 par common Heart Technology, Inc.: $.01 par common Herbalife International, Inc.: $.01 par common Damark International, Inc.: Class A, $.01 par Heritage Federal Bancshares, Inc.: $1.00 par common common HF Financial Corporation: $.01 par common Day Runner, Inc.: No par common Defense Software & Systems, Inc.: $.01 par common I-Stat Corporation: $.15 par common Delta Queen Steamboat Co., The: $.01 par common ICU Medical, Inc.: $.10 par common Deprenyl USA, Inc.: No par common; Class A, War- I.S.G. Technologies Inc.: No par common rants (expire 04-19-93) Industrial Holdings, Inc.: $.01 par common; Class A, Digital Products Corp.: $.025 par common; Series A, Warrants (expire 01-14-97); Class B, Warrants Warrants (expire 02-07-95); Series B, Warrants (expire 01-14-97) (expire 02-07-97) Infinity Broadcasting Corporation: Class A, $.002 par DSG International Limited: Ordinary shares, $.01 par common value Innovo Group, Inc.: $.01 par common Dura Pharmaceuticals, Inc.: No par common Integral Systems, Inc.: $.01 par common Durr-Fillauer Medical, Inc.: 1% convertible subordi- International Jensen Incorporated: $.01 par common nated debentures Interneuron Pharmaceuticals, Inc.: Class B, Warrants (expire 03-08-95) Ecoscience Corporation: $.01 par common Endosonics Corporation: No par common Engle Homes, Inc.: $.01 par common Kendall Square Research Corporation: $.01 par com- Enhanced Imaging Technologies, Inc.: $.001 par com- mon mon Kinnard Investments, Inc.: $.02 par common Ero, Inc.: $.01 par common Kopin Corporation: $.01 par common Eskimo Pie Corporation: $1.00 par common Evergreen Resources, Inc.: No par common Liberty Media Corporation: Class A, $1.00 par common; Class B, $1.00 par common; $.01 par convert- F&M Bancorp (Maryland): $5.00 par common ible preferred Fahnestock Viner Holdings, Inc.: Class A non-voting, Licon International, Inc.: $.001 par common No par common Lincare Holdings, Inc.: $.01 par common Farrel Corporation: $.01 par common Litchfield Financial Corporation: $.01 par common Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

444 Federal Reserve Bulletin • June 1992 Lone Star Steakhouse & Saloon, Inc.: $.01 par com- Restor Industries, Inc.: $.01 par common; Warrants mon (expire 08-12-94) Longhorn Steaks, Inc.: No par common Roper Industries, Inc.: $.01 par common M-Wave, Inc.: $.01 par common S & T Bancorp, Inc.: $2.50 par common Matrix Pharmaceutical, Inc.: $.01 par common Sanborn, Inc.: $.01 par common; Warrants (expire Maxicare Health Plans, Inc.: $.01 par common 08-07-96) Meadowbrook Rehabilitation Group, Inc.: Class A, Sand Technology Systems International, Inc.: Class $.01 par common A, No par common Medical Diagnostics, Inc.: $.01 par common Satellite Technology Management, Inc.: No par com- Medical Technology Systems, Inc.: $.01 par common; mon Warrants (expire 05-31-92); Warrants Sayett Group, Inc.: $.01 par common; Warrants (expire 07-10-96) (expire 02-05-95) Medicis Pharmaceutical Corporation: Class A, $.001 Scholastic Corporation: $.01 par common par common; Class B, Warrants (expire 03-28-95); Schuler Homes, Inc.: $.01 par common Class C, Warrants (expire 04-10-95) Sciclone Pharmaceuticals, Inc.: No par common; Memorex Telex N.V.: American Depository Receipts Warrants (expire 03-12-97) Men's Wearhouse, Inc., The: $.01 par common Scotts Company, The: Class A, $.01 par common Menley & James, Inc.: $.01 par common Seragen, Inc.: $.01 par common Mohawk Industries, Inc.: $.01 par common Sholodge, Inc.: No par common Simula, Inc.: $.01 par common Nahama & Weagant Energy Company: No par com- Spectranetics Corporation, The: $.001 par common mon Sphinx Pharmaceuticals Corporation: $.01 par common NBT Bancorp, Inc.: $.001 par common SSE Telecom, Inc.: $.01 par common NCI Building Systems, Inc.: $.01 par common Staar Surgical Company: $.01 par common Neorx Corporation: $.02 par convertible exchangeable Staff Builders, Inc.: Warrants (expire 01-31-95) preferred Summit Care Corporation: No par common Noel Group, Inc.: $.01 par common Sybron Chemical Industries, Inc.: $.01 par common Northern Trust Corporation: Depository shares repre- Synopsys, Inc.: $.01 par common senting V20 of a share of cumulative convertible preferred stock, Series E Target Therapeutics, Inc.: $.0025 par common Noven Pharmaceuticals, Inc.: $.0001 par common Taseko Mines, Limited: No par common Tele-Communications, Inc.: Liquid yield options due Odd's-n-End's, Inc.: $.01 par common 2008 Omega Financial Corporation: $5.00 par common Teledata Communication, Ltd.: Ordinary Shares, Opta Food Ingredients, Inc.: $.01 par common NIS .1 Option Care, Inc.: $.01 par common Telios Pharmaceuticals, Inc.: No par common TNT Freight ways Corporation: $.01 par common Pan Petroleum Master Limited Partnership: Deposi- Tocor II, Inc.: Units (expire 12-31-96) tory receipts for units of limited partnership Triconex Corporation: No par common PCI Services, Inc.: $.001 par common Peoples Holding Company, The: $5.00 par common Union Planters Corporation: Series E, No par cumu- Phycor, Inc.: No par common lative convertible preferred Plains Spirit Financial Corporation: $.01 par common United Postal Bancorp, Inc.: $.01 par common Polymedica Industries, Inc.: $.01 par common United Retail Group, Inc.: $.001 par common Pomeroy Computer Resources, Inc.: $.01 par common Univax Biologies, Inc.: $.01 par common Premier Anesthesia, Inc.: $.001 par common USA Truck, Inc.: $.01 par common Protein Design Labs, Inc.: $.01 par common Protocol Systems, Inc.: $.01 par common Varsity Spirit Corporation: $.01 par common Providential Corporation: $.001 par common Ventritex, Inc.: No par common Verdix Corporation: $.01 par common Radiation Care, Inc.: $.01 par common Veterinary Centers of America, Inc.: $.001 par com- Reliable Financial Corporation: $.01 par common mon; Warrants (expire 10-10-92) Repossession Auction, Inc.: $.00067 par common; Videotelecom Corporation: $.01 par common Warrants (expire 12-18-96) Vitalink Pharmacy Services, Inc.: $.01 par common Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 445 Walker Interactive Systems, Inc.: $.001 par common 3. In section 265.11(c)(ll)(vi), paragraphs (A) and (B) Walker Power, Inc.: $.01 par common are removed and paragraph (vi) is revised to read as Whole Foods Market, Inc.: No par common follows: Worthington Foods, Inc.: No par common (vi) With respect to nonbank acquisitions, the non- Xircom, Inc.: $.001 par common banking activities involved do not clearly fall within activities that the Board has designated as permis- Zynaxis, Inc.: $.01 par common sible for bank holding companies under section 225.25(b) of Regulation Y. Additions to the List of Foreign Margin Stocks Bandai Co., Ltd.: ¥50 par common ORDERS ISSUED UNDER BANK HOLDING COMPANY ACT Clarion Co., Ltd.: ¥50 par common Orders Issued Under Section 3 of the Bank Japan Storage Battery Co., Ltd.: ¥50 par common Holding Company Act Maruichi Steel Tube Ltd.: ¥50 par common Arvest Bank Group, Inc. Bentonville, Arkansas Okamoto Industries, Inc.: ¥50 par common Order Approving Acquisition of a Bank Sanwa Bank, Ltd.: ¥50 par common Arvest Bank Group, Inc., Bentonville, Arkansas ("Arvest"), a bank holding company within the mean- FINAL RULE—AMENDMENT TO RULES ing of the Bank Holding Company Act ("BHC Act"), REGARDING DELEGATION OF AUTHORITY has applied under section 3 of the BHC Act (12 U.S.C. § 1842) to acquire Farmers and Merchants Bank, The Board of Governors is amending 12 C.F.R. Part Prairie Grove, Arkansas ("Bank"). 265, its Rules Regarding Delegation of Authority Notice of the application, affording interested per- ("Rules"). The amendment would expedite applica- sons an opportunity to submit comments, has been tions processing by expanding the authority of the published (57 Federal Register 6606 (1992)). The time Federal Reserve Banks to approve certain applications for filing comments has expired, and the Board has under sections 3 and 4 of the Bank Holding Company considered the application and all comments received Act ("BHC Act") (12 U.S.C. § 1841 et seq.). Specif- in light of the factors set forth in section 3(c) of the ically, this amendment would delete certain provisions BHC Act. of the Board's Rules to permit the Reserve Banks to Arvest operates five subsidiary banks in Arkansas. approve applications involving: The principal shareholders of Arvest control other (a) banking organizations that rank among a state's banks that operate in Arkansas and Oklahoma (collecfive largest banking organizations or among the 50 tively, the "Walton Chain"). The Walton Chain is the largest banking organizations in the United States, or third largest commercial banking organization in Ar- (b) the acquisition of certain large nonbanking compa- kansas, controlling $876.3 million in deposits, reprenies by bank holding companies with over $1 billiori in senting 4.5 percent of total deposits in commercial assets. banking organizations in Arkansas.1 Bank is the 80th Effective April 8, 1992, 12 C.F.R. Part 265 is largest commercial banking organization in Arkansas, amended as follows: controlling $54.8 million in deposits, representing less than 1 percent of total deposits in commercial banking 1. The authority citation for Part 265 continues to read organizations in the state. Upon consummation of this as follows: proposal, the Walton Chain would remain the third largest commercial banking organization in the state, Authority. Sections ll(i) and (k) of the Federal Re- controlling $931.1 million in deposits, representing 4.8 serve Act (12 U.S.C. 248(i) and (k)). 2. In section 265.11(c)(ll)(v), paragraph (A) is re- 1. State deposit data are as of June 30, 1991, and market data are as moved and paragraphs (B) and (C) are redesignated as of June 30, 1990. Data are adjusted to reflect mergers and acquisitions (A) and (B), respectively. that were approved through January 31, 1992. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

446 Federal Reserve Bulletin • June 1992 percent of total deposits in commercial banking orga- the market for entry, and the other facts of record, the nizations in Arkansas. Board has determined that consummation of the pro- The Walton Chain and Bank compete in the Fayet- posal is not likely to result in a significantly adverse teville/Springdale, Arkansas banking market.2 The effect on competition in the Fayetteville/Springdale or Walton Chain controls five depository institutions in any other relevant banking market. the market and in the aggregate is the largest of twenty The financial and managerial resources and future depository institutions operating in the market.3 The prospects of Arvest, its affiliated and subsidiary banks, Walton Chain controls deposits of $792.3 million, and Bank are consistent with approval of this prorepresenting approximately 37.1 percent of total de- posal, especially in light of Arvest's commitment to posits in depository institutions in the Fayetteville/ increase its leverage ratio prior to consummation of Springdale banking market ("market deposits"). Bank this proposal. The Board also finds that considerations is the tenth largest depository institution in the market, relating to the convenience and needs of the commucontrolling $47.4 million in deposits, representing ap- nities to be served and the other factors the Board proximately 2.2 percent of market deposits. Upon must consider under section 3 of the BHC Act also are consummation of this proposal, the Walton Chain consistent with approval. would control approximately 39.3 percent of market Based on the foregoing and other factors of record, deposits. Upon consummation of this proposal, the the Board has determined that the application should Herfindahl-Hirschman Index ("HHI") for the market be, and hereby is, approved. This approval is specifiwould increase by 164 points to 2090.4 cally conditioned upon compliance by Arvest and its Fourteen commercial banking organizations and five subsidiaries with the commitments made in connection thrifts would continue to operate in the market follow- with this application. The commitments and condiing consummation of this proposal. In addition, the tions relied on in reaching this decision are conditions Fayetteville/Springdale market is attractive for entry. imposed in writing by the Board in connection with its The market population increased by 19.5 percent from findings and decision and may be enforced in proceed- 1980 to 1990, compared to an increase of 5.6 percent ings under applicable law. The acquisition shall not be for the state of Arkansas. The projected increase in the consummated before the thirtieth calendar day followpopulation from 1989 to 1994 for the market is 8.2 ing the effective date of this Order, or later than three percent, compared to a projected 2.7 percent increase months after the effective date of this Order, unless for the state. The per capita income in the market also such period is extended for good cause by the Board or is higher than in the rest of the state. Since 1987, the by the Federal Reserve Bank of St. Louis, acting market has gained two competitors, one through pursuant to delegated authority. de novo entry and one as a result of the sale of two By order of the Board of Governors, effective banks of a multibank holding company located in the April 27, 1992. market to two separate competitors. In addition, several large commercial banking organizations have re- Voting for this action: Vice Chairman Mullins and Govercently entered the market through acquisitions of nors Angell, Kelley, LaWare, Lindsey, and Phillips. Absent and not voting: Chairman Greenspan. small banks or thrifts. After review of the concentration levels, the number JENNIFER J. JOHNSON of competitors that will remain, the attractiveness of Associate Secretary of the Board 2. The Fayetteville/Springdale banking market is approximated by Orders Issued Under Section 4 of the Bank Benton and Washington Counties, Arkansas. 3. In this context, depository institutions include commercial banks, Holding Company Act savings banks and savings associations. Market share data are based 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- The Chuo Trust and Banking Company, tors of commercial banks. See Midwest Financial Group, 75 Federal Limited Reserve Bulletin 386 (1989); National City Corporation, 70 Federal Reserve Bulletin 743 (1984). Tokyo,Japan 4. Under the revised Department of Justice Merger Guidelines, 49 Federal Register 26,823 (June 29, 1984), a market in which the post-merger HHI is above 1800 is considered highly concentrated. Order Approving Application to Conduct Investment The Department of Justice has informed the Board that a bank merger Advisory Services or acquisition generally will not be challenged (in the absence of other factors indicating anticompetitive effects) unless the post-merger HHI is at least 1800 and the merger increases the HHI by at least 200 points. The Justice Department has stated that the higher than normal The Chuo Trust and Banking Company, Limited, HHI thresholds for screening bank mergers and acquisitions for Tokyo, Japan ("Applicant"), a foreign bank subject to anticompetitive effects implicitly recognizes the competitive effect of limited-purpose lenders and other non-depository financial entities. the provisions of the Bank Holding Company Act (the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 447 "BHC Act"), has applied, pursuant to section 4(c)(8) decreased or unfair competition, conflicts of interof the BHC Act (12 U.S.C. § 1843(c)(8)) and section ests, or unsound banking practices." 12 U.S.C. 225.21(a) of the Board's Regulation Y (12 C.F.R. § 1843(c)(8). 225.21(a)), to acquire 51 percent of the voting equity in In prior decisions, the Board has expressed concern a joint venture company ("Joint Venture") that pro- that joint ventures could potentially lead to a matrix of poses to engage in investment advisory activities that relationships between co-venturers that could breach are permissible for bank holding companies under the legally mandated separation of banking and comsection 225.25(b)(4) of the Board's Regulation Y merce, create the possibility of conflicts of interests (12 C.F.R. 225.25(b)(4)).i The remaining 49 percent of and other adverse effects that the BHC Act was Joint Venture would be acquired by J. & W. Seligman designed to prevent, or impair or give the appearance & Co., Incorporated, New York, New York ("Selig- of impairing the ability of the banking organization to man"). function effectively as an independent and impartial Notice of the application, affording interested per- provider of credit. This concern is particularly acute sons an opportunity to submit comments, has been where the joint venture involves a relationship bepublished (56 Federal Register 7047 (1991)). The time tween a bank holding company and a firm engaged in for filing comments has expired, and the Board has impermissible securities activities, and, therefore, has considered the application and all comments received the potential for the mingling of permissible and imin light of the factors set forth in section 4(c)(8) of the permissible securities activities.4 Further, joint ven- BHC Act. tures must be carefully analyzed for any possible adverse effects on competition and on the financial Applicant is the 69th largest banking organization condition of the banking organization involved in the worldwide and the sixth largest trust bank in Japan, proposal. controlling total consolidated assets of approximately $41.5 billion.2 Applicant maintains agencies in New The Board has relied on certain commitments to York, New York, and Los Angeles, California. address the potential adverse effects raised by joint Seligman has organized and distributes shares of the ventures between bank holding companies and firms Seligman Group of Mutual Funds ("the Funds"),3 generally engaged in securities activities not authoconsisting of 13 registered, open-end investment com- rized for bank holding companies. These commitments panies and two closed-end investment companies. are designed to separate the activities of the joint Seligman also is engaged in activities that are permis- venture from those of the nonbanking co-venturer. In sible for state member banks and bank holding com- this case, Applicant, Joint Venture and Seligman have panies, including providing discretionary asset man- made several commitments similar to those the Board agement services to high-net-worth individuals, has relied upon in other cases to mitigate potential pension plans, trusts, not-for-profit organizations and adverse effects, with two exceptions.5 First, Applicant other sophisticated investors in the United States and proposes to have officer and employee interlocks in various securities brokerage and trust activities. between Seligman and Joint Venture. Second, Appli- The Board previously has determined by regulation cant proposes that the name of the Joint Venture that the investment advisory services that Applicant ("Chuo Trust & Seligman Co. Ltd.") reflect its conproposes to conduct through Joint Venture are closely nection with Seligman. related to banking and permissible for bank holding In this case, the proposed officer interlocks involve companies under section 4(c)(8) of the BHC Act Seligman officers with substantial roles for determin- (12 U.S.C. § 1843(c)(8)). 12 C.F.R. 225.25(b)(4). Ap- ing the strategic policies of the Funds.6 These interplicant and Joint Venture propose to conduct these locking officers have been chosen to be officers of Joint activities pursuant to the Board's regulations. The Venture because of their demonstrated investment- Board also must find that the proposed acquisition advisory expertise. Their role at the Joint Venture will "can reasonably be expected to produce benefits to be limited to providing investment advice to customers the public . . . that outweigh the possible adverse of Joint Venture—an activity that is permissible for effects, such as undue concentration of resources, 4. See Amsterdam-Rotterdam Bank, N.V., 70 Federal Reserve 1. Applicant, a foreign bank operating agencies in New York and Bulletin 835 (1984) ("Amsterdam-Rotterdam"); See also The Long- California, is subject to certain provisions of the BHC Act by Term Credit Bank of Japan, Limited, 75 Federal Reserve Bulletin 719 operation of section 8(a) of the International Banking Act of 1978 (1989)("Long-Term Credit Bank"). (12 U.S.C. § 3106). 5. See Amsterdam-Rotterdam. A number of these commitments are 2. All banking data are as of September 30, 1990. described in the Appendix. 3. In addition, Seligman is the investment adviser to these funds and 6. One proposed officer interlock would permit Seligman's director of participates in formulating investment strategies, determines the com- research to also serve as an officer of Joint Venture. This individual has position of the funds through the day-to-day management of the supervisory responsibility over all of the portfolio managers for the portfolios of the funds, and monitors the investment performance of Seligman Funds. The other proposed interlocking officer currently the funds. serves as the portfolio manager for a specific open-end Seligman Fund. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

448 Federal Reserve Bulletin • June 1992 bank holding companies. The proposed interlocking In every case involving a nonbanking acquisition by officers have no role in marketing the Seligman Funds a bank holding company under section 4 of the BHC and have committed not to sell, market or recommend Act, the Board considers the financial condition and shares of any Seligman Fund to any customers of the resources of the applicant and its subsidiaries and the Joint Venture. All of the interlocking non-officer em- effect of the transaction on these resources.9 Based on ployees will be employees with clerical or administra- financial submissions by Applicant that make adjusttive functions only, and will be limited in number. ments to reflect Japanese banking and accounting Under these circumstances, the Board does not be- principles, including consideration of a portion of lieve that the proposed officer and employee interlocks unrealized appreciation in Applicant's portfolio of would cause Applicant to be involved in impermissible equity securities, Applicant's consolidated tier 1 and securities activities.7 total risk-based capital ratios meet applicable stan- In AmRo, the Board relied on a commitment that the dards. The Board has also considered that the scope of joint venture name would be distinct from, and not the proposed investment advisory activities is limited linked with, the securities firm co-venturer, Delfi to agency services and that the proposal requires a American Corporation. Chuo argues that this restric- de minimis capital investment. Based on all the facts of tion is unnecessary in this case because the customers record, the Board concludes that the financial considof the joint venture are expected to be sophisticated erations are consistent with approval. The managerial investors. resources of Applicant also are consistent with ap- The Board limited the use of Delfi's name by the proval. joint venture in the AmRo case in order to avoid the Consummation of Applicant's proposal may be exappearance that the joint venture sponsored, or was in pected to provide increased convenience to Joint any way responsible for, the Delfi mutual funds. The Venture's customers and gains in efficiency. The Board was also concerned in that case that the prece- Board expects that the de novo entry of Joint Venture dent of permitting common names would lead large into the market for these services would increase the banking organizations and securities firms to establish number of firms in the U.S. capable of offering advice joint ventures that would market products using the to an international clientele with respect to the U.S. name of the securities firms, thereby creating the securities market. Accordingly, the Board has deterperception that the banking organization had acquired mined that performance of the proposed activities by a company that was engaged in impermissible securi- Joint Venture can reasonably be expected to produce ties activities.8 Limiting reference to the securities benefits to the public. firm in the name of the joint venture prevented this For the reasons discussed above, and in reliance on practice without inhibiting the operation of the joint the commitments made by Applicant, Joint Venture venture or limiting its conduct of permissible activi- and Seligman, and the conditions in this order, the ties. Board believes that the proposal is not likely to result Based on all the facts of record, the Board continues in decreased or unfair competition, conflicts of interto believe that the prohibition against a connection ests, unsound banking practices, concentration of rewith the securities firm co-venturer in a joint venture's sources or other adverse effects, and that the balance name is a necessary condition to ensure that the public of public interest factors that the Board is required to benefits of the proposal outweigh the possible adverse consider under section 4(c)(8) of the BHC Act is effects of the joint venture with a firm engaged in favorable. impermissible securities activities. Accordingly, the Based on the foregoing, including the conditions Board's action in this case is subject to the condition described in this Order, and all of the facts of record, that the Joint Venture's name not include a reference including the commitments made by Applicant, Joint to Seligman. Venture, and Seligman in connection with its applica- Applicant and Seligman do not currently compete tion, the Board has determined that the application with each other in any relevant market. Accordingly, should be, and hereby is, approved. This determinaconsummation of the proposed transaction would not tion is also subject to all the conditions set forth in the eliminate any existing competition between Applicant Board's Regulation Y, including those in sections and Seligman. 225.4(d) and 225.23(b), and to the Board's authority to require such modification or termination of the activities of a bank holding company or any of its subsid- 7. Interlocks involving officers with other responsibilities would require review by the Board. 8. The Board has in other contexts also limited the ability of bank holding companies and their subsidiaries to share the same name as a 9. 12 C.F.R. 225.24; The Fuji Bank, Limited, 75 Federal Reserve mutual fund advised by the company or subsidiary. 12 C.F.R. Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal Reserve 225.125. Bulletin 155 (1987). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 449 iaries as the Board finds necessary to assure compli- 8. Applicant and its subsidiaries will not engage, ance with, or to prevent evasion of, the provisions and directly or indirectly, in the sale or distribution of, or purposes of the BHC Act and the Board's regulations purchase for their account, any shares of Seligman's and orders issued thereunder. The Board's approval of mutual funds. this proposal is specifically conditioned on compliance 9. Applicant and its subsidiaries will not purchase in by Applicant, Joint Venture, and Seligman with these their sole discretion any securities of Seligman's muconditions and commitments which are conditions tual funds in a fiduciary capacity, will not extend credit imposed in writing by the Board in connection with its to any such mutual fund, or accept securities of any findings and decision and may be enforced in proceed- such mutual fund as collateral for a loan which is for ings under applicable law. the purpose of purchasing securities of any such fund. This transaction shall not be consummated later 10. Applicant will not make any investment in Seligthan three months after the effective date of this man or nominate any director of Seligman. Order, unless such period is extended for good cause 11. Applicant and its banking subsidiaries will not take by the Board or by the Federal Reserve Bank of New into account the fact that a potential borrower com- York, acting pursuant to delegated authority. petes with Joint Venture in determining whether to By order of the Board of Governors, effective extend credit to that borrower. April 29, 1992. 12. Neither Applicant nor any of its banking subsidiaries will extend credit directly or indirectly to the Voting for this action: Vice Chairman Mullins and Gover- Joint Venture, any customer of the Joint Venture or nors Angell, Kelley, LaWare, Lindsey, and Phillips. Absent Seligman on terms more favorable than those afforded and not voting: Chairman Greenspan. similar borrowers in similar circumstances. 13. Applicant, as the 51 percent shareholder of Joint JENNIFER J. JOHNSON Venture, commits that Joint Venture will not provide Associate Secretary of the Board to the Seligman Group mutual funds access to its customer lists. Seligman has agreed that the Seligman Appendix Group of mutual funds will not solicit business from the clients of the Joint Venture and will not seek access to the customer lists of the Joint Venture. Applicant's Commitments 14. Joint Venture will not solicit customers of the Seligman Group of mutual funds and Joint Venture 1. Applicant will apply for the Board's prior approval will not request or accept access to the customer lists to retain its investment in the Joint Venture should of such mutual funds. Seligman expand into a line of business other than the 15. Applicant, as the 51 percent shareholder of the Joint businesses it currently engages in. If required by the Venture, commits that any referral by the Joint Venture Board in such circumstances, Applicant will divest its of its customers to the Seligman Group will include investment in Joint Venture. notice that alternative providers of the same mutual 2. The offices of Seligman and the Joint Venture will fund services are available. Seligman Group has agreed have separate entrances. that any referral of a customer of the Seligman Group to 3. Applicant and its subsidiaries will not distribute the Joint Venture by the Seligman Group will include prospectuses or sales literature for Seligman's mutual notice that additional organizations are available which funds or make any such literature available to the provide the same services as Joint Venture. public at any of their offices. 16. Joint Venture will not act as investment adviser to 4. Officers and employees of the New York branch and any investment company organized and advised by the Los Angeles agency will be instructed not to Seligman or any affiliate of Seligman (or any other express any opinion concerning the advisability of investment company that may in the future be so purchasing the securities of any Seligman mutual fund. organized and advised). 5. The names of customers of the New York branch or 17. Joint Venture will not provide advice in the United Los Angeles agency will not be furnished to Selig- States to any investor that is not a sophisticated man's mutual funds. investor. The term "sophisticated investor" has the 6. None of Seligman's mutual funds will have offices in same meaning as the term "accredited investor" as any building which is likely to be identified in the that term is defined in the securities Act of 1933, as public's mind with Applicant or its subsidiaries. amended and Regulation D, 12 C.F.R. 230. 7. Applicant and its subsidiaries will not act as regis- 18. No officer or employee of Seligman, whose respontrar, transfer agent or custodian for any of Seligman's sibility consists of selling or marketing the shares of mutual funds. any of the Seligman Funds (or any other open-end Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

450 Federal Reserve Bulletin • June 1992 investment company that may be established by Selig- subsidiaries in Michigan, Illinois, and Indiana. This man), or whose responsibility consists of overseeing proposal represents an internal reorganization of the corporate affairs of any of the Seligman Funds (or FOA's subsidiary banks and would not have a signifany other open-end investment company that may be icantly adverse effect on competition in any relevant established by Seligman) will serve concurrently as an banking market. Accordingly, competitive considerofficer or employee of the Joint Venture. ations are consistent with approval. 19. No director, officer or employee of the Joint The Board also concludes that the financial and Venture will recommend any of Seligman's mutual managerial resources and future prospects of Ann funds to a client or prospective client of the Joint Arbor Bank and Livingston Bank are consistent with Venture, or in any way solicit a client or prospective approval. client of the Joint Venture on behalf of any of Seligman's mutual funds. Convenience and Needs Considerations Orders Issued Under Bank Merger Act In analyzing the effect of this merger on the convenience and needs of the communities to be served by First of America Bank—Ann Arbor Ann Arbor Bank, the Board has taken into account the Ann Arbor, Michigan record of performance of Ann Arbor Bank and Livingston Bank under the Community Reinvestment Act Order Approving Merger of Banks (12 U.S.C. § 2901 et seq.) ("CRA"). The CRA requires the federal financial supervisory agencies to First of America Bank—Ann Arbor, Ann Arbor, encourage financial institutions to help meet the credit Michigan ("Ann Arbor Bank"), a state member bank, needs of the local communities in which they operate, has applied under section 18(c) of the Federal Deposit consistent with the safe and sound operation of such Insurance Act (12 U.S.C. § 1828(c)) ("Bank Merger institutions. To accomplish this end, the CRA requires Act") to merge with First of America Bank—Living- the appropriate federal supervisory authority to "asston, Howell, Michigan ("Livingston Bank"), with sess an institution's record of meeting the credit needs Ann Arbor Bank as the surviving entity. Ann Arbor of its entire community, including low- and moderate- Bank has also applied under section 9 of the Federal income neighborhoods, consistent with the safe and Reserve Act (12 U.S.C. § 321) to establish branches at sound operation of the institution," and to take that the 7 offices of Livingston Bank and has applied to record into account in its evaluation of applications to make an additional investment in bank premises pur- merge under the Bank Merger Act and to establish a suant to section 24A of the Federal Reserve Act domestic branch.3 (12 U.S.C. § 371(d)).1 In this regard, the Board has considered comments Notice of the applications, affording interested per- filed by several individuals ("Protestants") alleging sons an opportunity to submit comments, has been that Ann Arbor Bank has failed to provide adequate given in accordance with applicable law. As required assistance for the development of low-income housing by the Bank Merger Act, reports on the competitive in Ann Arbor. Protestants cited as an example Ann effects of the merger were requested from the United Arbor Bank's refusal to donate a downtown office States Attorney General, the Office of the Comptroller building for use as low-income housing. The Board has of the Currency, and the Federal Deposit Insurance carefully reviewed the CRA performance records of Corporation. The time for filing comments has expired, Ann Arbor Bank and Livingston Bank, as well as and the Board has considered the applications and all Protestants' comments, the banks' responses, and all of the comments received in light of the factors set forth in the other relevant facts, in light of the CRA, the Board's the Bank Merger Act and the Federal Reserve Act. regulations, and the Statement of the Federal Financial Ann Arbor Bank and Livingston Bank are subsid- Supervisory Agencies Regarding the Community Reiniary banks of First of America Bank Corporation, vestment Act ("Agency CRA Statement").4 Kalamazoo, Michigan ("FOA"). FOA, with total consolidated assets of $16.8 billion,2 controls 25 banking 3. 12 U.S.C. § 2903. 4. 54 Federal Register 13,742 (1989). The Agency CRA Statement 1. These branches will be located at: 10014 East Grand River, provides guidance regarding the types of policies and procedures that Brighton; 8130 West Grand River, Brighton; 11050 Highland Road, the supervisory agencies believe financial institutions should have in Hartland; 2300 East Grand River, Howell; 207 North Michigan, place in order to fulfill their responsibilities under the CRA on an Howell; 219 North Walnut Street, Howell; and 222 West Main, ongoing basis, and the procedures that the supervisory agencies will Pinckney, all in Michigan. use during the applications process to review an institution's record of 2. Asset data are as of December 31, 1991. performance under the CRA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 451 Initially, the Board notes that Ann Arbor Bank holds a substantial mortgage on the building. While received a "satisfactory" rating from the Federal Ann Arbor Bank has considered Protestants' sugges- Reserve Bank of Chicago in its most recent examina- tion that the building be donated, Ann Arbor Bank has tion for CRA performance as of September 1991. determined that it is not feasible, in light of the Livingston Bank has an outstanding CRA performance financial consequences to the bank, to make a charirating as reflected in its most recent examination for table donation of the building. Ann Arbor Bank also CRA performance by its primary regulator, the Fed- notes that conversion from the current office configeral Deposit Insurance Corporation. The Agency CRA uration to a facility for single-room occupancy would Statement provides that a CRA examination is an require substantial renovations. important and often controlling factor in the consider- The Board also notes that Ann Arbor Bank engages ation of an institution's CRA record and that these in activities that support the development of lowreports will be given great weight in the applications income housing. For example, Ann Arbor Bank has process.5 In addition, the Board has recently con- extended credit to facilitate the expansion and rehacluded that the CRA performance records of all of bilitation of the Ann Arbor YMCA, which includes a FOA's subsidiary banks are generally consistent with single-room occupancy facility for low-income indiapproval of applications under the convenience and viduals in Ann Arbor. In addition, Ann Arbor Bank needs factor in the Bank Holding Company Act.6 has provided a line of credit to the Washtenaw The record also indicates that Ann Arbor Bank has Affordable Housing Corporation for housing acquisiin place the types of policies and procedures outlined tion and renovation for low- and moderate-income in the Agency CRA Statement that contribute to an individuals, and has extended credit to the Arroweffective CRA program. For example, Ann Arbor wood Hills Cooperative, which provides housing to Bank has appointed a CRA Officer as well as a low-income individuals. Community Liaison, and has formed a CRA Commit- On the basis of all the facts of record, including tee, which includes representatives from all lending comments received and relevant examination redepartments. The CRA Committee meets bi-monthly, ports, the Board concludes that convenience and and annually performs an audit of Ann Arbor Bank's needs considerations, including the CRA perfor- CRA activities. mance records of Ann Arbor Bank and Livingston In addition, Ann Arbor Bank has an officer calling Bank, are consistent with approval of these applicaprogram that permits outreach to realtors, business tions. groups, churches, municipalities, nonprofit organizations, and schools. Ann Arbor Bank markets its loan Other Considerations products through a wide variety of media, including marketing directed at low- and moderate-income indi- Ann Arbor Bank has also applied under section 9 of viduals. Ann Arbor Bank also offers mortgage loans the Federal Reserve Act to establish branches at the and small business services for low- and moderate- offices of Livingston Bank. The Board has considincome customers. For example, Ann Arbor Bank ered the factors it is required to consider when offers the FOA Initiative Mortgage, with downpay- reviewing applications for establishing branches ments as low as 5 percent, and assists small businesses pursuant to section 9 of the Federal Reserve Act, and through a program with the Wayne Downtown Devel- finds these factors to be consistent with approval. opment Authority to provide loans to attract new In connection with its branch applications, Ann business to the downtown district and to assist existing Arbor Bank has requested permission under section businesses to continue operating within the city. 24A of the Federal Reserve Act to make an additional The Board has considered Protestants' proposal investment in bank premises. The Board concludes regarding the donation of a building for a homeless that the additional investment in bank premises facility in light of Ann Arbor Bank's response and will support Ann Arbor Bank's acquisition of the other activities by Ann Arbor Bank to assist low- offices of Livingston Bank and is consistent with income or homeless individuals.7 The bank currently approval. Based on the foregoing and other facts of record, the Board has determined that the applications 5. 54 Federal Register at 13,745. should be, and hereby are, approved. This approval 6. First of America Bank Corporation, 76 Federal Reserve Bulletin is specifically conditioned on compliance by Ann 371 (1992). Arbor Bank and Livingston Bank with all of the 7. This building, known as the Downtown Club, served as a single-room occupancy facility for the homeless until 1982. Its resi- commitments made in connection with these applidential operations ceased when the building was converted into a cations. The commitments and conditions relied on commercial office building. In 1986, Ann Arbor Bank acquired the in reaching this decision are conditions imposed in mortgage and was forced to foreclose on the property in June 1991. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

452 Federal Reserve Bulletin • June 1992 writing by the Board in connection with its findings (12 U.S.C. § 1828(c)) in considering proposals under and decision and may be enforced in proceedings section 5(d)(3) of the FDI Act. The Bank Merger Act under applicable law. This transaction shall not be prohibits approval of any proposal that would substanconsummated before the thirtieth calendar day fol- tially lessen competition in any relevant banking marlowing the effective date of this Order, or later than ket unless the agency finds that the anticompetitive three months after the effective date of this Order, effects of the proposed transaction are clearly outunless such period is extended for good cause by the weighed in the public interest by the probable effect of Board or by the Federal Reserve Bank of Chicago, the transaction in meeting the convenience and needs acting pursuant to delegated authority. of the community to be served. 12 U.S.C. § 1828(c). By order of the Board of Governors, effective Norwest and First Federal directly compete in three April 13, 1992. banking markets, including the Rapid City, South Dakota banking market.1 In the Rapid City banking Voting for this action: Chairman Greenspan and Governors market, Bank is the largest of 13 commercial banking Angell, Kelley, LaWare, Lindsey, and Phillips. Absent and or thrift institutions (together, "depository institunot voting: Governor Mullins. tions"), controlling deposits of $487 million, representing approximately 39.3 percent of total deposits in JENNIFER J. JOHNSON depository institutions in the market ("market depos- Associate Secretary of the Board its").2 First Federal controls $184.2 million in deposits in the Rapid City market. With all thrift deposits in the Rapid City banking market weighted at 50 percent,3 ACTIONS TAKEN UNDER THE FEDERAL DEPOSIT First Federal is the fifth largest depository institution INSURANCE CORPORATION IMPROVEMENT ACT in the market, and its deposits represent approxi- OF 1991 mately 7.4 percent of total market deposits. If the proposed merger were consummated, Bank would By the Board control $664 million in deposits,4 and its share of total market deposits would increase to approximately 50 percent of market deposits.5 The Herfindahl-Hir- April 3, 1992 schman Index ("HHI"), for this market would increase by 825 points to 2988.6 David V. Nelson These measures are particularly significant in light Vice President of the structure of the Rapid City banking market. Norwest Corporation Bank currently controls more than twice the share of Norwest Center the Rapid City banking market as the second largest Sixth Street and Marquette Avenue competitor. Upon consummation of Norwest's pro- Minneapolis, Minnesota 55479 posal, Bank would control 20 of the 48 branches of depository institutions in the market, and only one Dear Mr. Nelson: other depository institution would operate more than three branches. Moreover, most of the remaining Norwest Corporation, Minneapolis, Minnesota ("Norwest"), has proposed to acquire certain assets and assume certain liabilities of First Federal Savings 1. The Rapid City banking market is comprised of Butte, Lawrence, Bank of South Dakota, Rapid City, South Dakota Pennington, Haakon, Custer, Fall River, Shannon, Jackson, and ("First Federal"), through its bank subsidiary, Nor- Bennett Counties; Lakeside Township, Southwest Meade Unorganized Territory, and Belle Fourche-Cheyenne Valleys Unorganized west Bank South Dakota, N.A., Sioux Falls, South Territory in Meade County. Dakota, ("Bank"). As structured, the transaction re- 2. Deposit and market share data are as of June 30, 1991. quires the Board's approval pursuant to section 5(d)(3) 3. See, e.g., First Union Corporation, 76 Federal Reserve Bulletin 83 (1990); First Hawaiian, Inc., 77 Federal Reserve Bulletin 52 (1991). of the Federal Deposit Insurance Act ("FDI Act"), as 4. This calculation accounts for Norwest's proposal to transfer the amended by the Federal Deposit Insurance Corpora- Custer branch of First Federal to First Western Bank, Custer, South Dakota. tion Improvement Act of 1991 (Pub. L. No. 102- 5. Because the deposits of First Federal would be transferred to a 242, § 501, 105 Stat. 2236, 2388 (1991)). By letter dated commercial bank pursuant to Norwest's proposal, First Federal's March 31, 1992, the Board determined not to approve deposits are included at 100 percent following Bank's proposed assumption of these deposits. See First Banks, Inc., 76 Federal this proposal. The Board issues this Statement ex- Reserve Bulletin 669, 670 n.9 (1990). plaining in more detail the reasons for its action. 6. If thrift deposits are weighted at 50 percent both before and after consummation of Norwest's proposal, Bank's market share would The Board must consider the factors and follow the increase to 46.4 percent and the HHI would increase by 565 points to procedures established in the Bank Merger Act 2,727. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 453 depository institutions in the market are relatively ence in the Rapid City market. While public benefits small and have small market shares. This market has would result from Norwest's proposal, the Board does not enjoyed entry of new competitors since 1987, and not believe that, in light of the facts of this case, these this market is not of the size, and has not experienced benefits clearly outweigh the likely adverse effects of the high growth rate, that typically attracts new com- the proposal on competition in the Rapid City banking petitors.7 market. The Board has considered Norwest's argument that For these reasons, and based on all of the facts of the various measures of market share overstate the record, the Board concludes that considerations relatcompetitive effect of the transaction because these ing to the competitive effects of this proposal are not measures do not reflect the troubled financial condi- consistent with approval. Considerations relating to tion of First Federal and recent flow of deposits to the financial and managerial resources and future other institutions, or the competition offered by credit prospects of the existing and proposed institutions, unions in this market. However, based on a review of and the convenience and needs of the communities to all the facts of record, including the structure of the be served, do not lend sufficient weight to warrant Rapid City market, the current market share con- approval of this application. trolled by Norwest, and the number and location of Accordingly, it is the Board's judgment that apbranch offices of Norwest following the transaction, proval of this application is not warranted and, it is for the Board believes that the proposed transaction these reasons that the Board has denied the applicawould have a significantly adverse effect on competi- tion under section 5(d)(3) of the FDI Act. tion in the Rapid City banking market. The Board also believes these significant competi- Very truly yours, tive effects are not clearly outweighed in the public interest by benefits to the convenience and needs of JENNIFER J. JOHNSON the communities to be served. The RTC has advised Associate Secretary of the Board the Board that it has received bids for First Federal from various other prospective purchasers, including cc: Federal Reserve Bank of Minneapolis qualified bidders that do not have a significant pres- Resolution Trust Corporation Office of the Comptroller of the Currency Federal Deposit Insurance Corporation 7. Between 1980 and 1990, population in the Rapid City market Department of Justice increased by 7.4 percent compared to a national average of 9.7 percent. ACTIONS TAKEN UNDER THE FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT ACT OF 1991 By the Director of the Division of Banking Supervision and Regulation and the General Counsel of the Board 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 Panhandle Bancshares, Inc., New MeraBank, F.S.B., The First National April 3, 1992 Panhandle, Texas El Paso, Texas (Wolfin Bank of Panhandle, Branch) Panhandle, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

454 Federal Reserve Bulletin • June 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 BB&T Financial Corporation, Peoples Bank, Richmond April 15, 1992 Wilson, North Carolina Thomas ville, North Carolina BRAD, Inc., Bank of Melrose, Chicago April 8, 1992 Black River Falls, Wisconsin Melrose, Wisconsin Camilla Bancshares, Inc., Bank of Camilla, Atlanta April 3, 1992 Camilla, Georgia Camilla, Georgia City Holding Company, Home Bancorp, Inc., Richmond March 30, 1992 Charleston, West Virginia Sutton, West Virginia Commerce Bancshares, Inc., First Peoria Corporation, Kansas City April 3, 1992 Kansas City, Missouri Peoria, Illinois CBI-Illinois, Inc., Kansas City, Missouri Commercial Financial Corp., The Commercial Trust & Chicago April 23, 1992 Storm Lake, Iowa Savings Bank, Storm Lake, Iowa Community Bancorp of Community Bank of Atlanta April 17, 1992 Louisiana, Inc., Lafourche, Raceland, Louisiana Raceland, Louisiana Community Group, Inc., Consolidated Atlanta April 17, 1992 Chattanooga, Tennessee Bancorporation, Inc., Chattanooga, Tennessee First Banks, Inc., WIN Bancorp, Inc., St. Louis March 30, 1992 St. Louis, Missouri Winchester, Illinois First Capital Bancorp, Inc., First Capital Bank, Kansas City April 9, 1992 Guthrie, Oklahoma Guthrie, Oklahoma First Central Bancshares, Inc., First Central Bank, Atlanta April 7, 1992 Lenoir City, Tennessee Lenoir City, Tennessee First National Agency of Bagley, Fosston Bancorporation, Minneapolis April 3, 1992 Inc., Inc., Bagley, Minnesota Fosston, Minnesota First Tule Bancorp of Delaware, The First National Bank Dallas April 7, 1992 Inc., of Tulia, Wilmington, Delaware Tulia, Texas Glen Burnie Bancorp, The Bank of Glen Burnie, Richmond April 21, 1992 Glen Burnie, Maryland Glen Burnie, Maryland Grayson Bankshares, Inc., Grayson National Bank, Richmond April 8, 1992 Independence, Virginia Independence, Virginia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 455 Section 3—Continued Reserve Effective AApppplliiccaanntt((ss)) BBaannkk((ss)) Bank Date HNB Corporation, American Bancorp of Kansas City April 3, 1992 Arkansas City, Kansas Ponca City, Inc., Ponca City, Oklahoma Lockhart Bankshares-Delaware, First-Lockhart National Dallas April 21, 1992 Inc., Bank, Wilmington, Delaware Lockhart, Texas Lockhart Bankshares, Inc., Lockhart Dallas April 21, 1992 Lockhart, Texas Bankshares-Delaware, Inc., Wilmington, Delaware First-Lockhart National Bank, Lockhart, Texas Mabrey Insurance Agency, Inc., The Morris State Bank, Kansas City April 22, 1992 Okmulgee, Oklahoma Morris, Oklahoma Niota Bancshares, Inc., Bank of Niota, Atlanta April 17, 1992 Niota, Tennessee Niota, Tennessee Northwest Financial Corp., Conover Bancorporation, Chicago April 21, 1992 Spencer, Iowa Creston, Iowa Old State Bank Corporation, The Old State Bank of Chicago April 1, 1992 Fremont, Michigan Fremont, Fremont, Michigan Peoples Bancorporation, Inc., The Peoples National Richmond April 1, 1992 Easley, South Carolina Bank, Easley, South Carolina Princeton National Bancorp, Illinois Valley Chicago April 21, 1992 Inc., Bancshares, Princeton, Illinois Princeton, Illinois San Bancorp., Ocheyedan Chicago April 9, 1992 Sanborn, Iowa Bancorporation, Ocheyedan, Iowa Southern Banking Corporation, Southern Bank of Central Atlanta April 6, 1992 Altamonte Springs, Florida Florida, Altamonte Springs, Florida TB&C Bancshares, Inc., Citizens First Bank, Atlanta April 2, 1992 Columbus, Georgia Rome, Georgia Union Bancorp, Inc., Union Bank and Trust Richmond April 2, 1992 Bowling Green, Virginia Company, Bowling Green, Virginia Union Planters Corporation, Southeastern Bancshares, St. Louis April 20, 1992 Memphis, Tennessee Inc., Alexandria, Tennessee Villages Bancorporation, Inc., First Bank of the Atlanta April 2, 1992 Lady Lake, Florida Villages, Lady Lake, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

456 Federal Reserve Bulletin • June 1992 Section 4 Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date Alpha Financial Group, Inc., Ghiglieri Insurance Chicago April 10, 1992 Minonk, Illinois Agency, Toluca, Illinois Mahaska Investment Company, making and servicing of Chicago April 13, 1992 Oskaloosa, Iowa Mahaska loans Investment Company ESOP, Oskaloosa, Iowa Matewan BancShares, Inc., Hampden Venture Richmond April 10, 1992 Matewan, West Virginia Limited Partnership, Gilbert, West Virginia Montana Bancsystem, Inc., making and servicing Minneapolis April 22, 1992 Billings, Montana loans Norwest Corporation, general insurance Minneapolis April 3, 1992 Minneapolis, Minnesota surety/bond activities Norwest Corporation, National Ag Minneapolis April 16, 1992 Minneapolis, Minnesota Underwriters, Inc., Anoka, Minnesota PENDING CASES INVOLVING THE BOARD OF court order on January 7, 1992, and oral argument GOVERNORS was held on the case on March 17, 1992. Greenberg v. Board of Governors, No. 91-4200 (2d Cir., filed December 4, 1991). Petition for review of This list of pending cases does not include suits orders of prohibition issued by the Board on Octoagainst the Federal Reserve Banks in which the Board ber 28, 1991. Oral argument was held on April 22, of Governors is not named a party. 1992. First Interstate BancSystem of Montana, Inc. v. State of Idaho, Department of Finance v. Board of Board of Governors, No. 91-1525 (D.C. Cir., filed Governors, No. 92-70107, (9th Cir., filed Febru- November 1, 1991). Petition for review of Board's ary 24, 1992). Petition for review of Board order order denying on Community Reinvestment Act returning without action a bank holding company grounds the petitioner's application under section 3 application to relocate its subsidiary bank from of the Bank Holding Company Act to merge with Washington to Idaho. Commerce BancShares of Wyoming, Inc. The case Davis v. Board of Governors, No. 91-6972 (Supreme is pending. Court, filed December 4, 1991). Petition for certio- Board of Governors v. Kemal Shoaib, No. CV 91-5152 rari seeking review of Burke v. Board of Governors, (C.D. California, filed September 24, 1991). Action 940 F.2d 1360 (10th Cir. 1991), in which the court of to freeze assets of individual pending administrative appeals upheld Board orders assessing civil money adjudication of civil money penalty assessment by penalties and issuing orders of prohibition. The the Board. On October 15, the court issued a pre- Board's oppositionto certiorari was filed on April liminary injunction restraining the transfer or dispo- 15, 1992. sition of the individual's assets. In re Subpoena Served on the Board of Governors, Board of Governors v. Ghaith R. Pharaon, No. 91- Nos. 91-5427, 91-5428 (D.C. Cir., filed Decem- CIV-6250 (S.D. New York, filed September 17, ber 27, 1991). Appeal of order of district court, 1991). Action to freeze assets of individual pending dated December 3, 1991, requiring the Board and administrative adjudication of civil money penalty the Office of the Comptroller of the Currency to assessment by the Board. On September 17, the produce confidential examination material to a pri- court issued an order temporarily restraining the vate litigant. The court of appeals stayed the district transfer or disposition of the individual's assets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 457 In re Smouha, No. 91-B-13569 (Bkr. S.D. New York, WRITTEN AGREEMENTS APPROVED BY FEDERAL filed August 2, 1991). Ancillary proceeding under RESERVE BANKS the U.S. Bankruptcy Code brought by provisional liquidators of BCCI Holdings (Luxembourg) S.A. Bank South Corporation and affiliated companies. On August 15, 1991, the Atlanta, Georgia bankruptcy court issued a temporary restraining order staying certain judicial and administrative The Federal Reserve Board announced on April 21, actions, which has been continued by consent. 1992, the execution of a Written Agreement among the Fields v. Board of Governors, No. 3:91CV069 (N.D. Federal Reserve Bank of Atlanta and Bank South Ohio, filed February 5, 1991). Appeal of denial of Corporation, Atlanta, Georgia. request for information under the Freedom of Information Act. Connecticut Bancorp, Inc. Synovus Financial Corp. v. Board of Governors, No. Norwalk, Connecticut 89-1394 (D.C. Circuit, filed June 21, 1989). Petition for review of Board order permitting relocation of a The Federal Reserve Board announced on April 8, bank holding company's national bank subsidiary 1992, the execution of a Written Agreement among the from Alabama to Georgia. On December 20, 1991, Federal Reserve Bank of New York, the Banking the Court of Appeals vacated the Board's order, Commissioner, State of Connecticut, and Connecticut ruling that the Board has no authority over interstate Bancorp, Inc., Norwalk, Connecticut. relocations of national banks. Synovus's petition for rehearing was denied on March 27, 1992. Farmers National Bancorp of Cynthiana, Inc. MCorp v. Board of Governors, No. CA3-88-2693 Cynthiana, Kentucky (N.D. Texas, filed October 10, 1988). Application for injunction to set aside temporary cease and The Federal Reserve Board announced on April 6, desist orders. The case is pending. 1992, the execution of a Written Agreement among the Federal Reserve Bank of Cleveland, the Department of Financial Institutions, Commonwealth of Ken- FINAL ENFORCEMENT ORDERS ISSUED BY THE tucky, and Farmers National Bancorp of Cynthiana, BOARD OF GOVERNORS Inc., Cynthiana, Kentucky. Blaine E. Correll Northeast Bancorp, Inc. Somerset, Kentucky Stamford, Connecticut The Federal Reserve Board announced on April 8, The Federal Reserve Board announced on April 8, 1992, the termination of a Cease and Desist Order 1992, the execution of a Written Agreement among issued, on December 20, 1991, against Blaine E. the Federal Reserve Bank of New York, the Banking Correll, an institution-affiliated party of First and Commissioner, State of Connecticut, and Northeast Bancorp, Inc., Stamford, Connecticut. Farmers Bancshares, Inc., Somerset, Kentucky. Security Bank Corporation State Bank and Trust of Colorado Springs Manassas, Virginia Colorado Springs, Colorado The Federal Reserve Board announced on April 15,1992, The Federal Reserve Board announced on April 15, the execution of a Written Agreement among the Federal 1992, the issuance of a Cease and Desist Order against Reserve Bank of Richmond, the Bureau of Financial the State Bank and Trust of Colorado Springs, Colo- Institutions of the Commonwealth of Virginia, and the rado Springs, Colorado. Security Bank Corporation, Manassas, Virginia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

58 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 A33 Open-end investment companies—Net sales and asset position COMMERCIAL BANKING INSTITUTIONS A33 Corporate profits and their distribution A33 Total nonfarm business expenditures on new A18 Major nondeposit funds plant and equipment A19 Assets and liabilities, last-Wednesday-of-month A34 Domestic finance companies—Assets and series liabilities and business credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

A3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS c Corrected GDP Gross domestic 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 Domestic Financial Statistics • June 1992 1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 1991 1992 1991 1992 MMoonneettaarryy aanndd ccrreeddiitt aaggggrreeggaattee Q2 Q3 Q4 Q1 Nov. Dec. Jan. Feb. Mar. Reserves of depository institutions2 1 Total........ 3.0 7.4 15.3 24.9 20.3 24.1 13.7 45.3 19.4 2 Required 8.9 7.9 15.5 25.0 25.3 22.5 13.4 44.7 20.5 3 Nonborrowed 3.4 4.3 19.3 25.4 24.0 22.2 12.8 48.9 19.2 4 Monetary base3 4.2 6.6 8.4 9.8 8.2 7.8 9.1 16.4 4.0 Concepts of money, liquid assets, and debt4 5 Ml 7.4 7.5 11.1 16.4 14.3 9.2 16.2 27.0 10.1 6 M2 4.4 .6r 2.3 4.2 4.8 2.9 3.1r 9.4 -.7 7 M3 1.8 -1.3 1.0 2.1 2.4r 1.2r 1.2r 7.0 -3.3 8 L -1.9 .7 .2 n.a. 3.1 -,5r -i.r 7.7 n.a. 9 Debt 4.2 4.7 4.3 n.a. 4.5 3.0 2.4 3.8 n.a. Nontransaction components 10 In M25 3.4 -1.6 -.7 .0 1.6r .7 — 1.6r 3.1r -4.6 11 In M3 only6 -9.7 -9.9 -5.1r -7.7 -6.2r -4.3r -16.1 Time and savings deposits Commercial banks 12 Savings, including MMDAs 13.1 13.2 16.0 19.2 18.0 17.4 20.0 22.9 11.1 13 Smalltime7 i.r 1.5r -8.4 -18.9 -15.0 -15.6 -21.7 -23.7r -14.4 14 Large time8, -3.3 -8.0 -14.4 -18.1 -18.2 -10.4 -25.8 - 16.6r -16.2 Thrift institutions 15 Savings, including MMDAs 16.8 9.8 10.3r 22.8 13.0 14.5r 24.1 31.1 24.3 16 Smalltime7 -14.2 -24.2 -22.5 -24.7 -20.7 -21.1 -24.5 —31.6r -27.9 17 Large time8'9 -35.0 -40.3 -36.5 -29.9 -31.6 -28.2 -24.5 —35.4 -44.1 Money market mutual funds 18 General purpose and broker-dealer 7.6 -4.7 -4.0 .9 .7 3.3 -1.7 12.3 -18.8 19 Institution-only 28.8 11.4 37.2 26.9 38.5 38.0 22.1 38.2 -18.5 Debt components4 20 Federal 6.8 13.9 12.2 n.a. 10.8 7.7 5.9 5.9 n.a. 21 Nonfederal 3.4 1.9 1.7 n.a. 2.4 1.5 1.2 3.1 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 Ml. 8. Large time deposits are those issued in amounts of $100,000 or more, M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of excluding those booked at international banking facilities. $100,000 or more) issued by all depository institutions, (2) term Eurodollars held 9. Large time deposits at commercial banks less those held by money market by U.S. residents at foreign branches of U.S. banks worldwide and at all banking funds, depository institutions, and foreign banks and official institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A5 1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT 1 Millions of dollars Monthly averages of Weekly averages of daily figures for week ending daily figures Factor 1992 1992 Jan. Feb. Mar. Feb. 12 Feb. 19 Feb. 26 Mar. 4 Mar. 11 Mar. 18 Mar. 25 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 307,590 304,147 308,062 302,753 306,852 304,294 304,826 308,003 310,221 306,913 U.S. government securities 2 Bought outright-system account 264,753 263,190 265,433 262,086 263,633 264,988 264,800 264,501 264,642 266,790 3 Held under repurchase agreements ... 1,489 776 3,466 0 2,207 0 1,328 4,201 6,323 863 Federal agency obligations 4 Bought outright 6,005 5,960 5,960 5,960 5,960 5,960 5,960 5,960 5,960 5,960 5 Held under repurchase agreements ... 32 40 93 0 128 0 83 67 206 57 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 279 63 38 35 56 42 32 11 78 35 8 Seasonal credit 16 22 32 21 23 22 25 27 30 38 9 Extended credit 1 2 2 1 2 3 2 2 2 1 10 Float 797 688 576 674 1,084 587 560 1,081 433 529 11 Other Federal Reserve assets 34,219 33,406 32,462 33,976 33,759 32,692 32,037 32,153 32,547 32,639 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 21,039 21,078r 21,120 21,070" 21,079" 21,089" 21,099 21,109 21,119 21,128 ABSORBING RESERVE FUNDS 15 Currency in circulation 303,218 301,646r 302,799 301,375r 302,677' 302,013" 301,710 302,739 303,289 302,887 16 Treasury cash holdings 666 689 711 685 691 693 702 730 703 704 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 7,180 6,241 5,614 6,584 5,874 5,139 5,563 5,245 5,906 5,724 18 Foreign 369 225 218 222 223 207 224 198 232 205 19 Service-related balances and adjustments 4,330 4,529 4,665 4,532 4,436 4,561 4,623 4,671 4,498 4,900 20 Other 262 242 278 244 255 225 253 267 288 281 21 Other Federal Reserve liabilities and capital 8,440 7,929 7,886 7,731 8,151 8,296 7,461 7,615 7,997 8,123 22 Reserve balances with Federal Reserve Banks3 25,240 24,799 28,086 23,525 26,701 25,325 26,463 28,723 29,500 26,293 End-of-month figures Wednesday figures 1992 1992 Jan. Feb. Mar. Feb. 12 Feb. 19 Feb. 26 Mar. 4 Mar. 11 Mar. 18 Mar. 25 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 306,533 303,555 306,524 303,8% 317,969 304,020 305,018 307,180 311,999 306,291 U.S. government securities2 Bought outright-system account ... 262,619 265,423 265,796 262,670 264,161 264,912 264,677 263,576 265,244 265,834 Held under repurchase agreements 3,529 0 1,805 0 9,469 0 2,016 4,291 6,856 1,160 Federal agency obligations Bought outright 5,960 5,960 5,960 5,960 5,960 5,960 5,960 5,960 5,960 5,960 Held under repurchase agreements 135 0 0 0 522 0 111 102 294 100 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions Adjustment credit 88 35 23 31 55 34 20 14 420 23 Seasonal credit 21 25 29 22 22 24 23 29 36 45 Extended credit 3 2 0 2 2 2 2 2 3 1 10 Float 198 290 512 1,113 4,837 303 251 831 422 346 11 Other Federal Reserve assets 33,980 31,821 32,400 34,098 32,942 32,785 31,960 32,375 32,765 32,823 12 Gold stock 11,058 11,058 11,057 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 21,060 21,099" 21,138 21,070r 21,079" 21,089" 21,099 21,109 21,119 21,128 ABSORBING RESERVE FUNDS 15 Currency in circulation 299,879 301,374r 303,212 302,214r 302,997" 301,731" 302,239 303,353 303,272 302,932 16 Treasury cash holdings 684 698 711 691 692 698 734 703 703 711 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 10,828 5,477 6,846 5,834 6,407 5,103 6,313 4,466 4,533 4,631 18 Foreign 321 264 262 224 209 207 248 188 258 172 19 Service-related balances and adjustments 4,556 4,623 4,610 4,532 4,436 4,561 4,623 4,671 4,498 4,900 20 Other 251 231 364 250 208 256 279 270 299 305 21 Other Federal Reserve liabilities and capital 7,629 7,222 8,098 7,831 8,169 8,121 7,309 7,699 7,991 7,990 22 Reserve balances with Federal Reserve Banks3 24,520 25,842 24,637 24,467 37,007 25,509 25,448 28,015 32,640 26,856 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 DomesticN onfinancialS tatistics • June 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. Sept. Oct. Nov. Dec. Jan. Feb. Mar. 1 Reserve balances with Reserve Banks 35,436 30,237 26,659 23,447 23,197 25,004 26,659 25,416 24,918 28,058 ? Total vault cash 29,828 31,786 32,513 31,536 32,299 31,714 32,513 34,135r 34,218r 31,647 3 Applied vault cash 27,374 28,884 28,872 27,680 28,386 28,053 28,872 30,396 30,320 28,225 4 Surplus vault cash 2,454 2,903 3,641 3,856 3,913 3,661 3,641 3,739r 3,897r 3,422 5 Total reserves6 62,810 59,120 55,532 51,127 51,584 53,057 55,532 55,812 55,238 56,282 6 Required reserves 61,887 57,456 54,553 50,198 50,501 52,165 54,553 54,809 54,174r 55,252 7 Excess reserve balances at Reserve Banks7 ... 923 1,664 979 929 1,083 892 979 1,003 1,065 1,030 8 Total borrowings at Reserve Banks8 265 326 192 645 261 108 192 233 77 91 9 Seasonal borrowings 84 76 38 287 211 86 38 17 22 32 10 Extended credit9 20 23 1 302 12 1 1 1 2 2 Biweekly averages of daily figures for weeks ending 1991 1992 Nov. 27 Dec. 11 Dec. 25 Jan. 8 Jan. 22 Feb. 5 Feb. 19 Mar. 4 Mar. 18 Apr. 1 1 Reserve balances with Reserve Banks2 24,155 26,839 26,133 27,557 26,147 22,374 25,108 25,922 29,111 27,580 2 Total vault cash3.. 32,656 31,093 33,284 33,318 33,156r 36,384r 34,354r 32,944r 30,564 32,414 3 Applied vault cash , 28,825 27,607 29,554 29,601 29,732 32,137 30,494 29,169 27,398 28,825 4 Surplus vault cash 3,832 3,486 3,730 3,717 3,424r 4,248r 3,860r 3,775r 3,166 3,589 5 Total reserves6 52,979 54,446 55,687 57,158 55,879 54,511 55,602 55,091 56,509 56,404 6 Required reserves 52,045 53,842 54,484 56,020 54,966 53,488 54,435 54,15lr 56,001 54,785 7 Excess reserve balances at Reserve Banks7 ... 934 605 1,203 1,138 913 1,023 1,168 941r 508 1,620 8 Total borrowings at Reserve Banks8 103 110 116 521 136 130 69 63 75 117 9 Seasonal borrowings 84 45 41 22 13 20 22 24 29 38 10 Extended credit9 2 1 1 1 0 2 2 3 2 1 1. Data in this table also appear in the Board's H.3 (502) weekly statistical institutions (that is, those whose vault cash exceeds their required reserves) to release. For ordering address, see inside front cover. Components may not sum to satisfy current reserve requirements. totals because of rounding. 5. Total vault cash (line 2) less applied vault cash (line 3). 2. Excludes required clearing balances and adjustments to compensate for float 6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash and includes other off-balance-sheet "as-of' adjustments. (line 3). 3. Total "lagged" vault cash held by depository institutions subject to reserve 7. Total reserves (line 5) less required reserves (line 6). requirements. Dates refer to the maintenance periods during which the vault cash 8. Also includes adjustment credit. can be used to satisfy reserve requirements. Under contemporaneous reserve 9. Extended credit consists of borrowing at the discount window under the requirements, maintenance periods end thirty days after the lagged computation terms and conditions established for the extended credit program to help periods during which the balances are held. depository institutions deal with sustained liquidity pressures. Because there is 4. All vault cash held during the lagged computation period by "bound" not the same need to repay such borrowing promptly as there is with traditional institutions (that is, those whose required reserves exceed their vault cash) plus short-term adjustment credit, the money market impact of extended credit is the amount of vault cash applied during the maintenance period by "nonbound" similar to that of nonborrowed reserves. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A7 1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Banks' Millions of dollars, averages of daily figures 1992, week ending Monday SSoouurrccee aanndd mmaattuurriittyy Feb. 3 Feb. 10 Feb. 17 Feb. 24 Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 Federal funds purchased, repurchase agreements, and other selected borrowings From commercial banks in the United States 1 For one day or under continuing contract 78,298 80,521 80,399 79,454 79,013 81,871 77,492 72,856 73,215 2 For all other maturities 16,179 15,834 15,725 15,685 16,533 16,364 16,666 16,555 15,967 From other depository institutions, foreign banks and official institutions, and U.S. government agencies 3 For one day or under continuing contract 20,786 19,659 21,232 25,031 22,497 19,725 19,358 19,026 18,107 4 For all other maturities 18,354 19,567 19,144 19,150 19,935 21,308 21,284 21,497 20,489 Repurchase agreements on U.S. government and federal agency securities Brokers and nonbank dealers in securities 5 For one day or under continuing contract 14,808 15,391 14,360 14,926 13,733 13,735 12,281 12,199 12,219 6 For all other maturities 14,302 14,679 15,956 14,528 15,230 15,525 17,124 17,656 17,192 All other customers 7 For one day or under continuing contract 25,315 25,583 26,110 26,749 26,789 25,438 25,201 25,668 26,017 8 For all other maturities 12,004 11,848 12,166 12,139 11,883 11,662 12,272 12,391 12,896 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 56,403 56,789 56,528 54,399 56,720 54,496 51,403 49,600 47,482 10 To all other specified customers 21,704 22,260 20,403 21,138 20,638 21,458 23,411 22,527 20,703 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 DomesticN onfinancial Statistics • June 1992 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Adjustment credit1 Seasonal credit2 Extended credit3 FFeeddeerraall RReesseerrvvee Bank 5/ O 1/ n 9 2 Effective date Previous rate 5/ O 1/ n 9 2 Effective date Previous rate 5/ O 1/ n 9 2 Effective date Previous rate Boston 3.5 12/20/91 4.5 3.75 4/30/92 3.95 4.25 4/30/92 4.45 New York 12/20/91 4/30/92 4/30/92 Philadelphia 12/20/91 4/30/92 4/30/92 Cleveland 12/20/91 4/30/92 4/30/92 Richmond 12/20/91 4/30/92 4/30/92 Atlanta 12/20/91 4/30/92 4/30/92 Chicago 12/20/91 4/30/92 4/30/92 St. Louis 12/24/91 4/30/92 4/30/92 Minneapolis 12/23/91 4/30/92 4/30/92 Kansas City 12/20/91 4/30/92 4/30/92 Dallas 12/20/91 4/30/92 4/30/92 San Francisco ... 3.5 12/20/91 4.5 3.75 4/30/92 3.95 4.25 4/30/92 4.45 Range of rates for adjustment credit in recent years4 Range (or F.R. Range (or F.R. Range (or Effective date A le l v l e F l) . — R. Ba o n f k Effective A le l v l e F l) . — R. B o an f k Effective date A le l v l e F l) . — R. Banks N.Y. Banks N.Y. Banks In effect Dec. 31, 1977. 6 6 1981-—May 5 13-14 14 1986—Mar. 7 7-7.5 7 14 14 10 7 7 1978—Jan. 9 6-6.5 6.5 Nov. 7 13-14 13 Apr. 21 6.5-7 6.5 20 6.5 6.5 6 13 13 July 11 6 6 May 11 6.5-7 7 Dec. 4 12 12 Aug. 21 5.5-6 5.5 12 7 7 22 5.5 5.5 July 3 7-7.25 7.25 1982---JJuullyy 70 11.5-12 11.5 10 7.25 7.25 73 11.5 11.5 1987—Sept. 4 5.5-6 6 Aug. 21 7.75 7.75 AAuugg.. 7 11-11.5 11 11 6 6 Sept. 22 8 8 3 11 11 Oct. 16 8-8.5 8.5 16 10.5 10.5 1988—Aug. 9 6-6.5 6.5 20 8.5 8.5 77 10-10.5 10 11 6.5 6.5 Nov. 1 8.5-9.5 9.5 30 10 10 3 9.5 9.5 Oct. 1? 9.5-10 9.5 1989—Feb. 24 6.5-7 7 13 9.5 9.5 7 7 1979—July 20 10 10 Nov. 77 9-9.5 9 27 Aug. 17 10-10.5 10.5 26 9 9 6.5 6.5 20 10.5 10.5 Dec. 14 8.5-9 9 1990—Dec. 19 Sept. 19 10.5-11 11 15 8.5-9 8.5 6-6.5 6 21 11 11 17 8.5 8.5 1991—Feb. 1 6 6 Oct. 8 11-12 12 4 5.5-6 5.5 10 12 12 1984-——AApprr.. 9 8.5-9 Apr. 30 5.5 5.5 n 9 9 May 2 5-5.5 5 1980—Feb. 15 12-13 13 Nov. 71 8.5-9 8.5 Sept. 13 5 5 19 13 13 76 8.5 8.5 Sept. 17 4.5-5 4.5 May 29 12-13 13 Dec. 74 Nov. 6 4.5 4.5 30 12 12 7 3.5-4.5 3.5 June 13 11-12 11 1985-——MMaayy 70 7.5-8 7.5 Dec. 20 3.5 3.5 16 11 11 74 7.5 7.5 24 29 10 10 In effect May 1, 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. The 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 Requirements TTyyppee ooff ddeeppoossiitt22 Percent of deposits Effective date Net transaction accounts3 33333 1111122222/////1111177777/////9999911111 1111100000 44444/////22222/////9999911111 00000 1111122222/////2222277777/////9999900000 00000 1111122222/////2222277777/////9999900000 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 l'/i 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 1V2 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 1 Vi years (see note 4). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Nonfinancial Statistics • June 1992 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars 1991 1992 TTyyppee ooff ttrraannssaaccttiioonn 11998899 11999900 11999911 Aug. Sept. Oct. Nov. Dec. Jan. Feb. U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 14,284 24,739 20,158 5,776 529 2,198 2,823 837 0 123 2 Gross sales 12,818 7,291 120 0 0 0 0 0 1,628 0 3 Exchanges 231,211 241,086 277,314 28,009 19,508 25,409 24,141 21,967 26,750 24,435 4 Redemptions 12,730 4,400 1,000 0 0 0 0 0 1,600 0 Others within one year 5 Gross purchases 327 425 3,043 340 200 0 178 0 0 0 6 Gross sales 0 0 0 0 0 0 0 0 0 0 7 Maturity shifts 28,848 25,638 24,454 3,425 1,131 2,002 1,655 1,570 1,298 6,020 8 Exchanges -25,783 -27,424 -28,090 -2,443 -2,202 -2,034 -2,585 -3,562 -989 -2,742 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 0 650 0 2,133 300 0 1,027 11 Gross sales 490 200 0 0 0 0 0 0 0 0 12 Maturity shifts -25,534 -21,770 -21,211 -3,425 -1,131 -1,877 -1,492 -1,570 -1,174 -6,020 13 Exchanges 23,250 25,410 24,594 1,993 2,202 1,686 2,135 3,562 539 2,292 Five to ten years 14 Gross purchases 287 0 1,280 0 0 0 880 0 0 0 15 Gross sales 29 100 0 0 0 0 0 0 0 0 16 Maturity shifts -2,231 -2,186 -2,037 688 0 -126 -163 0 -124 0 17 Exchanges 1,934 789 2,894 300 0 347 300 0 451 300 More than ten years 18 Gross purchases 284 0 375 0 0 0 375 0 0 0 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shifts -1,086 -1,681 -1,209 -688 0 0 0 0 0 0 21 Exchanges 600 1,226 600 150 0 0 150 0 0 150 All maturities 22 Gross purchases 16,617 25,414 31,439 6,116 1,379 2,198 6,390 1,137 0 1,150 23 Gross sales 13,337 7,591 120 0 0 0 0 0 1,628 0 24 Redemptions 13,230 4,400 1,000 0 0 0 0 0 1,600 0 Matched transactions 25 Gross sales 1,323,480 1,369,052 1,570,456 112,414 116,266 137,073 98,063 118,127 136,922 123,000 26 Gross purchases 1,326,542 1,363,434 1,571,534 110,280 118,481 135,281 97,925 118,263 136,282 124,654 Repurchase agreements2 27 Gross purchases 129,518 219,632 310,084 16,847 40,447 12,432 14,165 51,345 21,412 99,,882244 28 Gross sales 132,688 202,551 311,752 16,847 40,447 3,718 22,879 36,000 33,228 13,353 29 Net change in U.S. government securities -10,055 24,886 29,729 3,981 3,595 9,121 -2,462 16,619 -15,684 -725 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 5 0 0 0 0 0 32 Redemptions 442 183 292 0 0 14 51 45 85 0 Repurchase agreements2 33 Gross purchases 38,835 41,836 22,807 553377 33,,006611 714 275 1,744 390 557711 34 Gross sales 40,411 40,461 23,595 537 3,061 695 294 1,191 808 706 35 Net change in federal agency obligations -2,018 1,192 -1,085 0 -5 5 -70 508 -503 -135 36 Total net change in System Open Market Account -12,073 26,078 28,644 3,981 3,590 9,126 -2,532 17,127 -16,186 -860 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 1992 Feb. 26 Mar. 4 Mar. 11 Mar. 18 Mar. 25 Jan. 31 Feb. 28 Mar. 31 Consolidated condition statement ASSETS 1 Gold certificate account 11,058 11,058 11,058 11,058 11,058 11,058 11,058 11,057 2 Special drawing rights certificate account 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 3 Coin 629 623 616 615 607 614 632 599 Loans 4 To depository institutions 60 44 45 459 69 112 62 52 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 5,960 5,960 5,960 8 Held under repurchase agreements 0 111 102 294 100 135 0 9 Total U.S. Treasury securities 264,912 266,693 267,867 272,100 266,994 266,148 265,423 267,601 10 Bought outright2 264,912 264,677 263,576 265,244 265,834 262,619 265,423 265,796 11 Bills 130,033 129,798 128,697 129,741 129,531 128,767 130,544 129,492 12 Notes 102,835 102,835 102,835 103,460 104,260 101,520 102,835 104,260 13 Bonds 32,043 32,043 32,043 32,043 32,043 32,332 32,043 32,043 14 Held under repurchase agreements 0 2,016 4,291 6,856 1,160 3,529 0 1,805 15 Total loans and securities 270,932 272,808 273,973 278,813 273,123 272,354 271,444 273,613 16 Items in process of collection 4,979 6,440 5,656 5,419 4,835 5,034 5,155 8,172 17 Bank premises 998 1,000 1,001 1,007 1,007 994 1,001 1,007 Other assets 18 Denominated in foreign currencies 27,067 26,002 26,042 26,164 26,218 26,928 25,999 26,060 19 All other4 4,860 5,003 5,335 5,643 5,659 6,130 5,041 5,444 20 Total assets 330,541 332,952 333,699 338,737 332,524 333,129 330,347 335,971 LIABILITIES 21 Federal Reserve notes 281,969 282,498 283,564 283,472 283,121 280,117 281,605 283,383 22 Total deposits 35,947 37,318 37,674 42,325 36,956 40,595 36,659 36,952 23 Depository institutions 30,381 30,478 32,751 37,235 31,847 29,195 30,688 29,480 24 U.S. Treasury—General account 5,103 6,313 4,466 4,533 4,631 10,828 5,477 6,846 25 Foreign—Official accounts 207 248 188 258 172 321 264 262 26 Other 256 279 270 299 305 252 231 364 27 Deferred credit items 4,505 5,827 4,762 4,949 4,458 4,788 4,860 7,538 28 Other liabilities and accrued dividends5 2,369 2,224 2,228 2,311 2,235 2,558 2,317 2,226 29 Total liabilities 324,790 327,866 328,228 333,057 326,769 328,058 325,441 330,099 CAPITAL ACCOUNTS 30 Capital paid in 2,732 2,734 2,737 2,739 2,742 2,683 2,734 2,745 31 Surplus 2,647 2,342 2,522 2,573 2,604 2,383 2,171 2,598 32 Other capital accounts 372 9 211 368 408 6 0 529 33 Total liabilities and capital accounts 330,541 332,952 333,699 338,737 332,524 333,129 330,347 335,971 34 MEMO: Marketable U.S. Treasury securities held in custody for foreign and international accounts 265,009 267,191 267,478 266,278 264,354 266,801 268,036 271,183 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to Bank) 362,562 363,421 364,098 364,235 363,391 364,621 363,222 362,146 36 LESS: Held by Federal Reserve Bank 80,593 80,924 80,534 80,763 80,271 84,504 81,617 78,762 37 Federal Reserve notes, net 281,969 282,498 283,564 283,472 283,121 280,117 281,605 283,383 Collateral held against notes, net: 38 Gold certificate account 11,058 11,058 11,058 11,058 11,058 11,058 11,058 11,057 39 Special drawing rights certificate account 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 40 Other eligible assets 0 0 0 0 0 0 0 0 41 U.S. Treasury and agency securities 260,893 261,422 262,488 262,396 262,045 259,041 260,529 262,308 42 Total collateral 281,969 282,498 283,564 283,472 283,121 280,117 281,605 283,383 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 • June 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 1992 Feb. 26 Mar. 4 Mar. 11 Mar. 18 Mar. 25 Jan. 31 Feb. 28 Mar. 31 1 Total loans 60 44 45 459 69 112 62 52 2 Within fifteen days 60 39 32 457 67 112 58 46 3 Sixteen days to ninety days 1 6 13 2 2 0 4 6 4 Ninety-one days to one year 0 0 0 0 0 0 0 0 5 Total acceptances 0 0 0 0 0 0 0 0 6 Within fifteen days 0 0 0 0 0 0 0 0 7 Sixteen days to ninety days 0 0 0 0 0 0 0 0 8 Ninety-one days to one year 0 0 0 0 0 0 0 0 9 Total U.S. Treasury securities 264,912 266,693 267,867 272,100 266,994 262,619 265,423 265,7% 10 Within fifteen days2 13,395 14,873 13,834 19,450 14,487 8,864 8,559 6,571 11 Sixteen days to ninety days 63,618 63,906 69,039 64,082 63,035 64,603 69,052 67,222 12 Ninety-one days to one year 86,713 87,040 84,120 87,070 87,174 86,028 87,851 89,745 N One year to five years 61,400 61,088 61,088 61,713 62,513 63,788 60,175 62,473 14 Five years to ten years 15,192 15,192 15,192 15,192 15,192 14,796 15,192 15,192 15 More than ten years 24,594 24,594 24,594 24,594 24,594 24,540 24,594 24,594 16 Total Federal agency obligations 5,960 6,071 6,062 6,253 6,060 5,960 5,960 5,960 17 Within fifteen days2 403 231 190 582 300 108 403 220 18 Sixteen days to ninety days 502 783 695 535 535 867 502 524 19 Ninety-one days to one year 1,411 1,413 1,523 1,483 1,524 1,343 1,411 1,515 20 One year to five years 2,726 2,726 2,686 2,686 2,750 2,647 2,726 2,750 21 Five years to ten years 764 764 814 814 797 841 764 797 22 More than ten years 154 154 154 154 154 154 154 154 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 BASE' Billions of dollars, averages of daily figures 1991 1992 11998888 11998899 11999900 11999911 IItteemm DDeecc.. DDeecc.. DDeecc.. DDeecc.. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Seasonally adjusted AADDJJUUSSTTEEDD FFOORR CCHHAANNGGEESS IINN RREESSEERRVVEE RREEQQUUIIRREEMMEENNTTSS22 11 TToottaall rreesseerrvveess33 47.60 47.73 49.10 53.75 50.89 51.15 51.82 52.69 53.75 54.37 56.42 57.33 22 NNoonnbboorrrroowweedd rreesseerrvveess44 ^^ 45.88 47.46 48.78 53.56 50.12 50.50 51.56 52.59 53.56 54.13 56.34 57.24 33 NNoonnbboorrrroowweedd rreesseerrvveess pplluuss eexxtteennddeedd ccrreeddiitt55 47.12 47.48 48.80 53.56 50.42 50.80 51.57 52.59 53.56 54.13 56.34 57.24 44 RReeqquuiirreedd rreesseerrvveess 46.55 46.81 47.44 52.77 49.80 50.22 50.73 51.80 52.77 53.36 55.35 56.30 55 MMoonneettaarryy bbaassee66 263.77 274.57 300.35 325.22 316.68 318.50 320.93 323.13 325.22 327.68 332.16 333.26 Not seasonally adjusted 6 Total reserves 49.00 49.18 50.58 55.38 50.49 50.99 51.43 52.89 55.38 55.79 55.17 56.17 7 Nonborrowed reserves 47.29 48.91 50.25 55.18 49.73 50.35 51.17 52.78 55.18 55.56 55.10 56.08 8 Nonborrowed reserves plus extended credit5 48.53 48.93 50.28 55.19 50.03 50.65 51.18 52.78 55.19 55.56 55.10 56.08 9 Required reserves8 47.96 48.26 48.91 54.40 49.41 50.07 50.35 51.99 54.40 54.79 54.11 55.14 10 Monetary base9 267.46 278.30 304.04 329.35 316.68 317.28 319.14 323.06 329.35 328.75 328.59 331.07 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS10 11 Total reserves11 63.75 62.81 59.12 55.53 50.61 51.13 51.58 53.06 55.53 55.81 55.24 56.28 12 Nonborrowed reserves 62.03 62.54 58.79 55.34 49.84 50.48 51.32 52.95 55.34 55.58 55.16 56.19 13 Nonborrowed reserves plus extended credit 63.27 62.56 58.82 55.34 50.14 50.78 51.33 52.95 55.34 55.58 55.16 56.19 14 Required reserves 62.70 61.89 57.46 54.55 49.52 50.20 50.50 52.16 54.55 54.81 54.17 55.25 15 Monetary base12, 283.00 292.55 313.70 333.61 320.07 320.70 322.71 326.88 333.61 333.09 333.20 335.84 16 Excess reserves 1.05 .92 1.66 .98 1.09 .93 1.08 .89 .98 1.00 1.06r 1.03 17 Borrowings from the Federal Reserve 1.72 .27 .33 .19 .76 .65 .26 .11 .19 .23 .08 .09 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 Nonfinancial Statistics • June 1992 1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES' Billions of dollars, averages of daily figures 1991 1992 1988 1989 1990 1991 Dec. Dec. Dec. Dec. Dec. Jan. Feb. Mar. Seasonally adjusted Measures2 1 Ml 786.9 794.1 826.1 898.2 898.2 910.3 930.8 938.6 2 M2 3,071.1 3,227.3 3,339.0 3,439.4r 3,439.4r 3,448.2" 3,475.1" 3,473.2 3 M3 3,923.1 4,059.8 4,114.6 4,171.4r 4,171.4" 4,175.4" 4,199.8" 4,188.1 4 L 4,677.9 4,891.7 4,966.6 4,988.5r 4,988.5r 4,983.9" 5,015.8 n.a. 5 Debt 9,312.6 10,059.6 10,749.9 11,216.2 11,216.2 11,238.4" 11,273.9 n.a. Ml components 6 Currency 212.3 222.6 246.8 267.3 267.3 269.4 271.6 271.9 7 Travelers checks4 7.5 7.4 8.3 8.2 8.2 8.2 8.1 8.0 8 Demand deposits5 286.5 279.0 277.1 289.5 289.5 293.8" 305.0" 309.6 9 Other checkable deposits 280.6 285.1 293.9 333.2 333.2 338.9 346.0 349.1 Nontransaction components 10 In M2j 2,284.2 2,433.2 2,512.9 2,541.2r 2,541.2r 22,,553377..99"" 2,544.4" 2,534.6 11 In M3 852.0 832.5 775.6 732.lr 732. lr 727.2" 724.6" 714.9 Commercial banks 12 Savings deposits, including MMDAs 542.7 541.4 581.9 664.9 664.9 676.0 688.9 695.3 13 Small time deposits9. 447.0 531.0 606.4 598.5 598.5 587.7 576.1" 569.2 14 Large time deposits10- " 366.9 398.2 374.0 354.0 354.0 346.4 341.6" 337.0 Thrift institutions 15 Savings deposits, including MMDAs 383.5 349.7 338.8 377.8r 377.8r 385.4" 395.4" 403.4 16 Small time deposits9 585.9 617.5 562.3 464.5 464.5 455.0 443.0" 432.7 17 Large time deposits10 174.3 161.1 120.9 83.1 83.1 81.4 79.0 76.1 Money market mutual funds 18 General purpose and broker-dealer 241.9 316.3 348.9 360.5 360.5 360.0 363.7 358.0 19 Institution-only 91.0 107.2 133.7 179.1 179.1 182.4 188.2 185.3 Debt components 20 Federal debt 2,101.5 2,249.8 2,493.6 2,766.0 2,766.0 2,779.7 2,793.4 n.a. 21 Nonfederal debt 7,211.1 7,809.7 8,256.3 8,450.3 8,450.3 8,458.7" 8,480.5 n.a. Not seasonally adjusted Measures2 22 Ml 804.1 811.9 844.1 917.3 917.3 918.0" 916.6 930.3 23 M2 3,083.8 3,240.0 3,351.9 3,453.2r 3,453.2r 3,456.2" 3,462.4" 3,473.8 24 M3 3,934.7 4,070.3 4,124.7 4,182.1r 4,182.1r 4,180.5" 4,189.2" 4,193.2 25 L 4,694.9" 4,911.0 4,986.4 5,008.8r 5,008.8r 5,002.0" 5,009.1 n.a. 26 Debt 9,298.0 10,045.1 10,737.2 11,203.6 11,203.6 11,226.3" 11,244.4 n.a. Ml components 27 Currency 214.8 225.3 249.5 270.0 270.0 267.8 269.5 271.1 28 Travelers checks4 6.9 6.9 7.8 7.7 7.7 7.8 7.8 7.7 29 Demand deposits5 298.9 291.5 289.9 303.0r 303.0" 300.0 296.3 302.0 30 Other checkable deposits 283.5 288.1 296.9 336.5 336.5 342.4 342.9 349.5 Nontransaction components 31 In M2 2,279.7 2,428.1 2,507.8 22,,553355..99"" 22,,553355..99"" 2,538.1" 2,545.8" 2,543.5 32 In M38 850.8 830.3 772.8 728.9r 728.9" 724.4" 726.9" 719.4 Commercial banks 33 Savings deposits, including MMDAs 543.8 543.0 580.0 662.4 662.4 672.3 685.2 696.8 34 Small time deposits9.. 446.0 529.5 606.3 598.7 598.7 589.5 577.6" 569.4 35 Large time deposits • 365.9 397.1 373.0 352.8 352.8 344.0 340.5" 337.5 Thrift institutions 36 Savings deposits, including MMDAs 381.1 347.6 337.7 376.3 376.3 383.3" 393.3" 404.3 37 Small time deposits 584.9 616.0 562.2 464.6 464.6 456.4 444.2" 432.9 38 Large time deposits 175.2 162.0 120.6 82.8 82.8 80.8 78.8 76.2 Money market mutual funds 39 General purpose and broker-dealer 240.8 314.6 346.8 358.1 358.1 359.5 368.8 366.9 40 Institution-only 91.4 107.8 134.4 180.3 180.3 188.1 196.9 191.4 Repurchase agreements and eurodollars 41 Overnight 83.2 77.5 74.7 75.7 75.7 77.1" 76.7" 73.1 42 Term 227.4 178.5 158.3 128.6r 128.6" 126.9" 128.0" 130.2 Debt components 43 Federal debt 2,098.9 2,247.5 2,491.3 2,764.9 2,764.9 2,782.0 2,798.2 n.a. 44 Nonfederal debt 7,199.0 7,797.7 8,245.8 8,438.7 8,438.7 8,444.3" 8,446.3 n.a. For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

A16 Domestic Nonfinancial Statistics • June 1992 1.22 BANK DEBITS AND DEPOSIT TURNOVER' Debits are in billions of dollars; turnover is ratio of debits to deposits; monthly data are at annual rates 1991 1992 BBaannkk ggrroouupp,, oorr ttyyppee ooff ccuussttoommeerr Aug. Sept. Oct. Nov. Dec.r Jan. DEBITS TO Seasonally adjusted Demand deposits3 1 All insured banks 256,150.4 277,916.3 281,413.9 273,918.3r 281,469.0r 287,974.5r 278,234.2r 298,306.9 321,402.9 2 Major New York City banks 129,319.9 131,784.0 141,264.0 136,947.7r 142,143.2r 144,228.7r 140,769.6r 153,868.0 176,795.2 3 Other banks 126,830.5 146,132.3 140,144.6 136,970.6r 139,325.8r 143,745.8r 137,464.6r 144,438.8 144,607.7 4 ATS-NOW accounts4 2,910.5 3,349.6 3,628.1 3,659.4 3,679.1 3,759.9 3,553.7 3,828.6 3,771.5 5 Savings deposits 547.5 558.8 1,376.1 516.7 2,904.0 2,733.0 3,233.1 3,279.7 3,092.5 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 735.1 800.6 818.4 792.2r 817.9r 837.1r 787.3r 851.7 912.2 7 Major New York City banks 3,421.5 3,804.1 4,403.3 4,460.8r 4,498.2r 4,607.9r 4,214.7r 4,793.4 5,507.6 8 Other banks 408.3 467.7 449.6 434.9r 445.9r 459.6r 429.6r 453.9 452.1 9 ATS-NOW accounts4 15.2 16.5 16.1 15.9 15.7 15.9 14.8 15.8 15.3 10 Savings deposits 3.0 2.9 3.3 2.3 4.7 4.4 5.0 5.0 4.7 DEBITS TO Not seasonally adjusted Demand deposits3 11 All insured banks 256,133.2 277,400.0 281,296.1 286,956.8r 271,983.5r 296,037.8r 267,995.2r 306,122.5 321,595.7 12 Major New York City banks 129,400.1 131,784.7 140,936.4 146,342.8 137,659.5 149,704.6 136,592.8 157,942.7 173,821.1 13 Other banks 126,733.0 145,615.3 140,359.7 140,614.0r 134,324.0r 146,333.2r 131,402.4r 148,179.8 147,774.6 14 ATS-NOW accounts4 2,910.7 3,342.2 3,625.9 3,693.2 3,679.4 3,770.6 3,314.0 3,883.7 4,188.0 15 MMDAs6 2,677.1 2,923.8 n.a 2,751.7 n.a n.a n.a n.a n.a 16 Savings deposits 546.9 557.9 1,406.9 537.0 3,110.7 3,132.6 2,939.5 3,314.5 3,367.8 DEPOSIT TURNOVER Demand deposits3 17 All insured banks 735.4 799.6 818.3 843.2r 790.2r 858.6r 751.7r 833.4 892.8 18 Major New York City banks 3,426.2 3,810.0 4,380.9 4,771.4 4,305.8 4,775.5 4,059.4 4,591.4 5,067.7 19 Other banks 408.0 466.3 450.6 454.2r 430.2r 466.8r 406.9r 445.1 453.6 20 ATS-NOW accounts4 15.2 16.4 16.1 16.3 15.9 16.2 13.9 15.8 16.6 21 MMDAs6 7.9 8.0 n.a 6.8 n.a n.a n.a n.a n.a 22 Savings deposits 2.9 2.9 3.4 2.4 4.9 4.9 4.5 5.1 5.1 1. Historical tables containing revised data for earlier periods can be obtained 3. Represents accounts of individuals, partnerships, and corporations and of from the Banking and Money Market Statistics Section, Division of Monetary states and political subdivisions. Affairs, Board of Governors of the Federal Reserve System, Washington, D.C. 4. Accounts authorized for negotiable orders of withdrawal (NOWs) and 20551. accounts authorized for automatic transfer to demand deposits (ATSs). Data in this table also appear on the Board's G.6 (406) monthly statistical 5. Excludes 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 Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Seasonally adjusted 1 Total loans and securities2 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 2,851.8 2 U.S. government securities 478.2 484.1 493.9 503.7 513.2 523.4 538.4 550.5 562.5 564.2 568.7 576.8 3 Other securities 177.5 176.9 176.2 175.3 174.0 175.8 177.1 177.6 178.5 179.0 179.1 176.6 4 Total loans and leases2 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 2,098.4 5 Commercial and industrial ..... 635.1 630.6 626.0 623.6 619.4 622.0 622.6 621.0 617.6 614.5 608.9 606.4 6 Bankers acceptances held ... 8.7 8.2 7.7 7.5 7.8 7.4 7.0 7.6 7.9 7.3 7.6 7.6 7 Other commercial and industrial 626.5 622.4 618.3 616.1 611.6 614.6 615.6 613.4 609.7 607.2 601.3 598.8 8 U.S. addressees4. 620.6 616.6 612.6 610.3 605.7 608.5 608.9 606.8 602.9 601.1 595.0 592.4 9 Non-U.S. addressees 5.8 5.9 5.7 5.7 5.9 6.1 6.6r 6.6 6.8 6.1 6.2r 6.4 10 Real estate 861.5 863.8 868.6 867.7 866.9 867.9 869.0 870.6 871.1 870.7 875.4r 877.0 11 Individual 374.3 373.6 372.9 371.0 370.3 367.2 364.4 363.2 363.9 363.9 364.2 362.9 12 Security 48.5 49.1 49.0 47.4 48.4 5o. r 51.2 53.6 54.6 59.3r 56.9 60.4 13 Nonbank financial institutions 36.0 36.5 39.3 38.8 37.7 37.6 38.1 39.2 40.6 40.3 42.1 42.6 14 Agricultural 33.6 33.7 33.9 34.0 34.2 34.3 34.1 33.9 34.1 33.7 33.7 34.3 15 State and political subdivisions 32.3 31.7 31.3 30.9 30.5 30.1 29.7 29.4 29.2 28.3 28.4 28.4 16 Foreign banks 7.1 6.6 6.5 6.6 6.6 6.9 6.6 6.8 7.2 7.1 6.6 6.4 17 Foreign official institutions 2.5 2.4 2.5 2.4 2.3 2.3 2.4 2.6 2.5 2.4 2.3 2.2 18 Lease-financing receivables .... 33.1 33.0 33,2 32.4 31.7 31.7 31.5 31.3 31.4 31.3 31.3 31.4 19 All other loans 44.2 43.6 41.5 42.8 43.1 40.2 40.0 41.8 42.9 48.8r 46.9 46.4 Not seasonally adjusted 20 Total loans and securities2 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 2,852.6 21 U.S. government securities 479.9 484.0 493.1 501.5 511.7 521.9 537.3 551.5 558.5 563.8 572.7 582.2 V Other securities 177.0 176.5 176.2 174.3 174.2 175.8 177.4 177.9 178.7 179.5 179.2 176.8 23 Total loans and leases2 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 2,095.3r 2,093.7 24 Commercial and industrial ..... 638.3 633.4 628.0 623.5 617.6 619.1 621.1 619.7 618.9 611.4 608.1 609.1 25 Bankers acceptances held3... 8.4 8.2 7.7 7.2 7.6 7.4 7.0 7.9 8.2 7.4 7.8 7.6 26 Other commercial and industrial 629.9 625.2 620.3 616.3 609.9 611.8 614.1 611.9 610.7 604.0 600.3r 601.5 77 U.S. addressees4 623.8 619.3 614.3 610.5 604.1 605.8 607.9 605.7 604.3 597.5 593.7 594.9 28 Non-U.S. addressees 6.0 5.9 6.0 5.7 5.8 6.0 6.2 6.1 6.4 6.5 6.7 6.5 79 Real estate 860.2 864.4 868.9 868.8 868.8 868.8 870.3 872.0 871.3 870.1 872.5 873.6 30 Individual 371.6 371.9 370.7 368.3 369.3 368.7 365.3 364.7 368.6 368.1 364.2 360.4 31 Security 49.8 46.7 49.1 46.3 47.3 48.7 50.9 53.6 55.2 58.9r 61.5 62.1 32 Nonbank financial institutions 35.5 36.1 39.6 39.0 37.8 37.2 37.8 39.5 41.9 40.8 41.8 42.0 33 Agricultural 32.7 33.3 34.2 34.7 35.1 35.3 35.0 34.2 34.1 33.3 32.8 33.0 34 State and political subdivisions 32.2 31.7 31.3 30.7 30.4 30.1 29.7 29.4 29.1 28.6 28.5 28.4 35 Foreign banks 6.9 6.4 6.3 6.5 6.5 6.9 6.8 7.1 7.7 6.9 6.5 6.3 36 Foreign official institutions 2.5 2.4 2.5 2.4 2.3 2.3 2.4 2.6 2.5 2.4 2.3 2.2 37 Lease-financing receivables 33.1 33.0 32.9 32.1 31.6 31.6 31.6 31.4 31.4 31.6 31.5 31.5 38 All other loans 42.8 41.6 43.0 41.6 42.9 43.2 42.2 43.3 44.6 44.9r 45.7 45.2 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 • June 1992 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Billions of dollars, monthly averages 1991r 1992 SSoouurrccee ooff ffuunnddss Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan.r Feb/ Mar. Seasonally adjusted 1 Total nondeposit funds 265.7 260.8 250.4 248.5 246.8 249.1 263.1 264.0 275.4 279.3 283.6 228844..77 2 Net balances due to related foreign offices 27.8 23.6 17.0 18.1 18.2 20.3 31.1 33.0 39.0 43.7 42.6 45.8 3 Borrowings from other than commercial banks in United States 237.9 237.2 233.4 230.4 228.6 228.9 232.1 231.0 236.4 235.6 241.0 238.9 4 Domestically chartered banks 170.8 167.7 164.4 160.7 156.5 155.2 153.7 149.6 151.4 153.8 156.7 152.6 5 Foreign-related banks 67.1 69.5 69.0 69.7 72.1 73.7 78.3 81.4 85.0 81.8 84.3 86.3 Not seasonally adjusted 6 Total nondeposit funds 263.1 267.0 251.4 244.7 243.5 246.5 264.4 268.3 273.7 275.3 228844..22 228888..55 7 Net balances due to related foreign offices 26.5 26.2 16.5 14.8 16.3 19.4 30.7 33.9 42.6 44.3 42.8 46.2 8 Domestically chartered banks -3.3 -.3 -3.7 -7.3 -7.2 -8.8 -7.2 -4.4 -3.8 -4.9 -1.0 -1.2 9 Foreign-related banks 29.8 26.5 20.2 22.1 23.6 28.3 37.8 38.3 46.3 49.2 43.8 47.5 10 Borrowings from other than commercial banks in United States4 236.6 240.9 234.9 229.8 227.2 227.1 233.7 234.4 231.2 230.9 241.4 242.3 11 Domestically chartered banks 168.9 170.9 164.6 158.9 154.8 154.1 154.5 153.9 150.1 149.5 157.2 155.7 12 Federal funds and security RP borrowings 166.1 168.1 161.7 155.7 151.1 150.6 151.3 150.7 146.9 146.1 153.7 152.4 13 Other 2.9 2.8 2.8 3.2 3.7 3.5 3.2 3.2 3.1 3.4 3.5 3.3 14 Foreign-related banks6 67.7 70.0 70.4 70.9 72.4 72.9 79.2 80.5 81.1 81.4 84.3 86.7 MEMO Gross large time deposits 15 Seasonally adjusted 441.5 442.5 441.5 437.5 438.2 436.0 429.5 426.1 423.9 416.0 413.6 406.7 16 Not seasonally adjusted 440.2 443.7 442.8 437.1 440.0 437.5 429.7 425.8 422.6 413.6 412.5 407.2 U.S. Treasury demand balances at commercial banks8 17 Seasonally adjusted 22.8 15.8 24.1 22.8 25.3 23.8 29.2 34.2 26.4 27.8 19.5 21.8 18 Not seasonally adjusted 20.4 19.9 23.6 20.7 17.2 26.9 28.7 28.5 25.4 33.1 25.2 20.1 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 May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. ALL COMMERCIAL BANKING INSTITUTIONS2 1 Total assets 3,413.3 3,416.8 3,443.6 3,403.4 3,433.3 3,470.1 3,508.4 3,536.0 3,496.1 3,493.7 3,491.9 ? Loans and securities 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 3,015.4 3 Investment securities 633.2 640.6 650.5 654.0 663.5 686.3 695.9 704.9 704.8 711.4 720.0 4 U.S. government securities 468.4 477.5 488.2 492.1 500.6 522.3 530.6 538.5 539.6 547.3 557.3 5 Other 164.8 163.1 162.3 161.9 162.9 164.0 165.2 166.4 165.2 164.1 162.7 6 Trading account assets 26.9 30.1 33.4 31.3 32.4 34.9 36.0 33.2 38.1 37.6 39.1 7 Total loans 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 2,256.3 8 Interbank loans 167.9 161.4 169.2 161.3 163.8 168.4 171.4 172.4 176.0 171.3 166.3 9 Loans excluding interbank 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 2,090.0 10 Commercial and industrial 632.0 627.6 622.2 616.5 619.0 618.5 620.3 620.4 608.7 607.8 607.9 11 Real estate 865.7 868.8 867.8 868.2 867.9 871.5 871.4 871.3 870.7 871.5 872.5 1? Individual 370.9 370.7 369.5 369.3 368.7 365.5 363.8 370.2 367.5 363.1 360.3 13 All other 233.2 241.8 235.4 233.1 237.8 235.5 243.1 249.7 245.5 248.6 249.3 14 Total cash assets 219.8 210.8 212.9 197.5 204.0 206.8 225.3 230.6 203.2 206.1 205.0 15 Reserves with Federal Reserve Banks .. 26.7 29.3 24.3 22.6 26.1 25.9 24.7 29.2 23.7 27.4 28.5 16 Cash in vault 31.1 29.8 29.7 31.0 30.2 30.7 29.6 30.7 31.1 30.7 29.8 17 Cash items in process of collection ... 87.2 78.2 88.0 71.9 75.5 75.3 90.5 87.5 72.8 73.4 71.4 18 Demand balances at U.S. depository institutions 31.0 29.1 27.3 27.6 27.2 29.3 32.8 33.3 28.2 2288..99 2288..22 19 Other cash assets 43.8 44.3 43.6 44.4 44.9 45.5 47.7 49.9 47.4 45.6 47.1 20 Other assets 263.8 265.0 282.8 272.2 276.2 282.8 281.3 283.4 281.7 276.3 271.6 21 ToUl liabilities 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 n.a. ?? Total deposits 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 2,353.9 23 Transaction accounts 617.7 611.4 639.8 612.4 614.3 628.7 670.4 682.9 643.9 652.5 663.6 24 Savings deposits (excluding checkable) 608.7 613.4 623.1 627.4 631.3 643.0 650.7 665566..11 666677..77 668800..22 669911..11 75 Time deposits 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 1,013.8 999.2 76 Borrowings 489.8 500.4 489.0 466.7 483.8 501.3 487.3 499.5 507.2 503.5 495.4 77 Other liabilities 274.0 274.5 267.7 265.4 276.6 285.1 295.6 304.3 299.3 292.3 290.7 28 Residual (assets less liabilities) 327.3 329.6 336.5 344.2 347.2 338.0 337.0 340.2 350.2 351.4 352.0 DOMESTICALLY CHARTERED COMMERCIAL BANKS4 29 Total assets 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 3,033.4 30 Loans and securities 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 2,697.7 31 Investment securities 594.7 602.1 611.3 613.0 621.1 638.2 644.9 651.0 652.3 660.3 668.5 37 U.S. government securities 447.7 456.9 467.2 470.0 477.2 493.4 499.4 505.6 508.5 517.8 527.5 33 Other 147.0 145.1 144.1 143.0 143.8 144.8 145.4 145.4 143.8 142.5 141.0 34 Trading account assets 26.9 30.1 33.4 31.3 32.4 34.9 36.0 33.2 38.1 37.6 39.1 35 Total loans 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 1,990.1 36 Interbank loans 141.0 136.8 146.5 141.5 142.8 144.5 150.7 150.5 156.3 150.7 148.7 37 Loans excluding interbank 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 1,841.4 38 Commercial and industrial 494.4 490.0 482.5 475.6 472.9 471.0 468.3 463.4 454.9 454.5 454.6 39 Real estate 814.3 816.8 815.1 814.9 814.3 817.1 816.8 816.3 815.7 816.0 817.2 40 Revolving home equity 65.3 66.0 66.6 67.3 68.1 68.9 69.2 69.9 71.0 70.6 70.6 41 Other real estate 749.0 750.8 748.4 747.6 746.2 748.2 747.6 746.4 744.8 745.4 746.6 47 370.9 370.7 369.5 369.3 368.7 365.5 363.8 370.2 367.5 363.1 360.2 43 All other 205.7 208.9 207.0 204.6 207.4 202.6 207.5 210.2 203.4 205.8 209.4 44 Total cash assets 194.2 185.2 187.7 171.5 176.5 179.1 197.6 201.7 176.3 179.7 177.6 45 Reserves with Federal Reserve Banks. 25.8 28.2 23.9 22.1 24.9 25.1 24.0 28.5 23.3 26.8 28.0 46 Cash in vault 31.1 29.8 29.7 31.0 30.1 30.7 29.6 30.7 31.1 30.7 29.7 47 Cash items in process of collection ... 85.6 76.2 86.3 70.3 74.0 73.6 88.3 85.4 71.0 71.7 68.9 48 Demand balances at U.S. depository institutions 29.1 27.3 25.6 25.7 25.2 27.4 30.7 31.1 26.2 2277..11 2266..88 49 Other cash assets 22.7 23.6 22.3 22.3 22.3 22.4 25.0 25.9 24.7 23.4 24.1 50 Other assets 160.4 163.0 168.5 163.6 165.0 172.2 166.8 172.3 167.7 161.9 158.1 51 Total liabilities 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 n.a. 57 Deposits 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 2,307.8 53 Transaction accounts 608.3 601.7 630.4 603.1 605.3 619.4 660.4 672.6 634.1 643.2 653.7 54 Savings deposits (excluding checkable) 605.1 609.7 619.3 623.7 627.5 639.2 646.8 665522..11 663.6 667766..11 668877..00 55 Time deposits 1,072.2 1,064.3 1,063.8 1,062.6 1,054.1 1,042.6 1,033.7 1,017.8 994.3 982.0 967.1 56 Borrowings 357.6 369.8 352.7 339.1 354.6 362.1 346.8 356.8 367.9 360.8 355.9 57 Other liabilities 131.9 130.7 126.0 125.0 125.9 130.8 133.3 136.9 136.2 130.5 131.9 58 Residual (assets less liabilities)3 227.3 227.2 229.2 232.0 233.5 230.9 231.3 232.4 236.1 236.9 237.7 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 • June 1992 1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY-REPORTING COMMERCIAL BANKS1 Millions of dollars, Wednesday figures 1992 AAccccoouunntt Jan. 29" Feb. 5r Feb. 12" Feb. 19" Feb. 26" Mar. 4 Mar. 11 Mar. 18 Mar. 25 ASSETS 1 Cash and balances due from depository institutions 104,647 103,562 103,753 127,323 105,954 111,597 106,475 107,885 104,112 2 U.S. Treasury and government securities 228,752 236,427 235,114 235,668 233,915 239,442 239,261 238,298 239,269 3 Trading account 20,659 22,681 22,485 23,319 21,861 22,213 20,824 21,764 23,306 4 Investment account 208,093 213,745 212,628 212,349 212,055 217,229 218,437 216,534 215,962 5 Mortgage-backed securities2 78,603 80,075 80,398 79,361 79,643 81,363 81,187 80,522 80,700 All others, by maturity 6 One year or less 24,731 24,123 23,086 23,864 23,647 24,497 25,423 25,725 26,089 7 One year through five years 57,940 61,566 61,471 61,377 61,793 63,212 63,621 62,899 62,741 8 More than five years 46,819 47,981 47,674 47,747 46,972 48,157 48,205 47,388 46,432 9 Other securities 55,464 55,415 54,745 54,414 54,432 54,678 54,243 53,739 54,256 10 Trading account 1,614 1,214 1,155 1,094 1,147 1,256 1,188 1,286 1,690 11 Investment account 53,850 54,200 53,589 53,319 53,285 53,421 53,055 52,453 52,566 12 State and political subdivisions, by maturity 22,580 22,377 22,323 22,291 22,306 22,155 22,152 22,116 22,064 13 One year or less 3,231 3,239 3,233 3,325 3,331 3,325 3,361 3,338 3,322 14 More than one year 19,349 19,137 19,091 18,966 18,975 18,830 18,790 18,779 18,742 15 Other bonds, corporate stocks, and securities 31,269 31,823 31,266 31,028 30,978 31,266 30,904 30,337 30,502 16 Other trading account assets 13,178 13,560 13,398 13,895 12,532 12,456 12,346 12,281 11,804 17 Federal funds sold3 95,174 105,909 99,220 102,611 93,564 106,866 94,426 98,102 93,869 18 To commercial banks in the United States 66,533 71,849 67,665 71,092 61,418 69,704 60,048 63,756 60,083 19 To nonbank brokers and dealers 22,804 26,966 25,051 25,699 26,219 30,993 27,606 28,587 28,536 20 To others 5,837 7,094 6,503 5,820 5,927 6,168 6,772 5,759 5,250 21 Other loans and leases, gross 1,008,012 1,011,899 1,007,027 1,006,939 1,001,530 1,005,490 1,002,846 1,002,613 1,001,859 22 Commercial and industrial 288,483 290,399 287,870 289,256 288,727 290,562 289,038 289,678 289,028 23 Bankers acceptances and commercial paper 1,584 1,669 1,586 1,820 1,771 1,761 1,764 1,638 1,501 24 All other 286,899 288,730 286,284 287,436 286,956 288,801 287,274 288,040 287,527 25 U.S. addressees 285,399 287,197 284,841 285,838 285,404 287,414 285,996 286,744 286,192 26 Non-U.S. addressees 1,500 1,533 1,443 1,597 1,551 1,387 1,278 1,297 1,335 27 Real estate loans 402,283 403,469 404,307 402,036 400,707 401,807 402,972 401,716 400,430 28 Revolving, home equity 41,688 41,635 41,604 41,563 41,510 41,432 41,361 41,330 41,321 29 All other 360,595 361,835 362,703 360,472 359,198 360,376 361,611 360,386 359,109 30 To individuals for personal expenditures 186,781 185,874 185,740 184,695 184,210 182,971 182,318 182,248 182,536 31 To financial institutions 45,521 46,628 44,720 44,615 43,733 43,940 44,178 44,495 44,946 32 Commercial banks in the United States 21,565 21,458 20,375 20,709 20,305 19,099 19,849 20,192 20,428 33 Banks in foreign countries 1,934 2,348 1,732 1,593 1,596 1,819 1,490 1,710 2,020 34 Nonbank financial institutions 22,022 22,822 22,614 22,313 21,832 23,021 22,839 22,594 22,499 35 For purchasing and carrying securities 14,126 14,282 14,025 13,777 13,387 14,975 13,226 13,751 14,217 36 To finance agricultural production 5,850 5,825 5,867 5,872 5,774 5,805 5,804 5,784 5,784 37 To states and political subdivisions 17,344 17,260 17,241 17,322 17,221 17,193 17,116 17,118 17,083 38 To foreign governments and official institutions 898 957 896 985 885 855 861 915 852 39 All other loans 20,898 21,399 20,622 22,590 21,102 21,611 21,578 21,207 21,299 40 Lease-financing receivables 25,826 25,805 25,739 25,792 25,784 25,770 25,755 25,700 25,685 41 LESS: Unearned income 3,275 3,223 3,215 3,213 3,195 3,120 3,094 3,075 3,065 42 Loan and lease reserve6 37,133 37,840 38,023 37,992 37,885 38,551 38,587 38,444 38,169 43 Other loans and leases, net 967,603 970,836 965,790 965,734 960,451 963,819 961,166 961,095 960,625 44 Other assets 154,890 157,281 156,474 153,307 149,516 153,463 151,623 151,863 145,936 45 Total assets 1,619,709 1,642,988 1,628,492 1,652,951 1,610,364 1,642,320 1,619,539 1,623,264 1,609,871 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. 29" Feb. 5r Feb. 12r Feb. 19" Feb. 26" Mar. 4 Mar. 11 Mar. 18 Mar. 25 LIABILITIES 46 Deposits 1,110,251 1,130,593 1,121,830 1,134,594 1,112,697 1,139,953 1,127,609 1,117,038 1,114,291 47 Demand deposits 230,402 239,837 233,930 249,800 233,222 249,354 240,698 237,144 236,973 48 Individuals, partnerships, and corporations 182,636 192,247 188,726 196,825 184,686 198,922 192,711 191,250 188,978 49 Other holders 47,766 47,590 45,204 52,974 48,536 50,431 47,986 45,894 47,994 50 States and political subdivisions 7,957 8,599 7,649 8,192 8,026 7,780 7,182 7,645 8,059 51 U.S. government 1,796 2,339 1,757 1,653 1,771 2,149 1,808 1,671 1,535 52 Depository institutions in the United States 20,098 20,934 20,645 25,619 22,083 22,341 21,645 20,922 20,999 53 Banks in foreign countries 5,194 4,870 4,490 5,133 4,661 4,648 4,492 4,837 5,421 54 Foreign governments and official institutions 668 940 542 573 622 524 958 524 643 55 Certified and officers' checks 12,051 9,909 10,120 11,805 11,373 12,989 11,900 10,294 11,338 56 Transaction balances other than demand deposits 99,458 104,610 101,469 102,112 100,503 106,718 103,847 103,223 102,384 57 Nontransaction balances 780,391 786,147 786,432 782,683 778,972 783,881 783,064 776,671 774,935 58 Individuals, partnerships, and corporations 748,866 754,085 753,794 749,888 746,505 751,381 750,725 745,569 744,372 59 Other holders 31,525 32,062 32,638 32,795 32,467 32,500 32,339 31,102 30,563 60 States and political subdivisions 25,172 25,737 26,3% 26,279 26,226 26,135 26,075 25,546 25,137 61 U.S. government 1,517 1,565 1,570 1,619 1,611 1,781 1,806 1,824 1,843 62 Depository institutions in the United States 4,477 4,400 4,314 4,544 4,282 4,305 4,168 3,437 3,274 63 Foreign governments, official institutions, and banks 360 360 357 353 348 279 290 296 309 64 Liabilities for borrowed money6 281,938 285,886 282,342 296,408 275,491 283,727 270,840 285,935 271,694 65 Borrowings from Federal Reserve Banks 0 440 0 0 0 0 0 350 0 66 Treasury tax and loan notes 29,818 20,152 19,704 14,696 12,600 14,545 10,049 20,446 13,125 67 Other liabilities for borrowed money 252,120 265,294 262,638 281,712 262,891 269,183 260,792 265,139 258,569 68 Other liabilities (including subordinated notes and debentures) 107,489 106,730 104,006 101,472 101,726 97,885 100,361 99,355 102,892 69 Total liabilities 1,499,678 1,523,209 1,508,178 1,532,474 1,489,914 1,521,565 1,498,810 1,502,328 1,488,877 70 Residual (total assets less total liabilities)8 120,031 119,780 120,313 120,477 120,450 120,755 120,729 120,937 120,994 MEMO 71 Total loans and leases, gross, adjusted, plus securities .. 1,312,482 1,329,902 1,321,463 1,321,726 1,314,251 1,330,128 1,323,225 1,321,087 1,320,546 72 Time deposits in amounts of $100,000 or more 160,122 160,773 160,545 158,227 158,131 158,762 156,660 153,531 152,278 73 Loans sold outright to affiliates 1,224 1,219 1,212 1,214 1,220 1,221 1,223 1,219 1,207 74 Commercial and industrial 685 684 674 681 683 690 692 692 679 75 Other 538 535 537 533 537 531 530 527 528 76 Foreign branch credit extended to U.S. residents 23,409 23,544 23,195 23,165 23,136 23,225 23,247 23,173 23,186 77 Net due to related institutions abroad 453 -971 -2,834 -2,068 1,961 -4,650 -3,406 -3,492 2,543 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 • June 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. 29r Feb. 5r Feb. 12r Feb. 19 Feb. 26r Mar. 4 Mar. 11 Mar. 18 Mar. 25 1 Cash and balances due from depository institutions 16,543 16,441 15,633 16,504 16,226 16,705 16,667 16,850 16,881 2 U.S. Treasury and government agency securities 2200,,445599 20,802 20,180 20,167 19,381 20,005 19,865 19,5% 19,541 3 Other securities 8,913 8,947 9,015 8,992 8,990 9,006 8,983 9,150 9,065 4 Federal funds sold1 11,276 10,271 11,8% 14,441 13,461 13,795 12,652 12,233 9,194 5 To commercial banks in the United States ... 3,905 3,518 3,116 5,890 4,318 4,720 4,665 5,407 3,061 6 To others2 7,371 6,753 8,780 8,551 9,143 9,075 7,987 6,827 6,133 7 Other loans and leases, gross 164,689 164,837 161,778 162,240* 163,587 163,983 161,985 162,906 163,909 8 Commercial and industrial 97,381 96,916 %,729 %,531r 97,266 98,074 97,341 97,764 97,365 9 Bankers acceptances and commercial paper 2,314 2,620 2,487 2,454 2,611 2,751 2,601 2,507 2,455 10 All other 95,067 94,2% 94,243 94,077r 94,655 95,323 94,740 95,257 94,909 11 U.S. addressees 92,171 91,422 91,416 91,262r 91,808 92,447 91,875 92,376 92,069 12 Non-U.S. addressees 2,896 2,873 2,827 2,816 2,847 2,876 2,865 2,881 2,840 13 Loans secured by real estate 36,843 37,104 37,107 37,038r 36,930 36,873 36,783 36,737 36,830 14 To financial institutions 20,851 21,578 20,238 20,325 21,144 20,718 19,966 19,595 20,605 15 Commercial banks in the United States.. 7,824 8,119 7,294 7,347 7,755 7,854 7,687 7,407 7,476 16 Banks in foreign countries 1,866 2,068 1,832 1,685 1,692 1,681 1,493 1,598 1,687 17 Nonbank financial institutions 11,161 11,391 11,112 11,292 11,697 11,183 10,787 10,590 11,442 18 For purchasing and carrying securities 7,225 6,925 5,348 5,828 5,759 5,841 5,479 6,319 6,599 19 To foreign governments and official institutions 440055 368 357 370 373 354 381 369 363 20 All other 1,984 1,946 2,000 2,148r 2,114 2,123 2,036 2,122 2,148 21 Other assets (claims on nonrelated parties) .. 30,169 29,774 29,382 28,619* 28,722 28,572 30,229 28,161 27,542 22 Total assets3 291,836 293,310 290,954 289,975r 291,929 296,005 291,646 293,101 288,400 23 Deposits or credit balances due to other than directly related institutions 100,643 98,889 97,881 %,346r 99,639 97,864 99,802 101,485 101,039 24 Demand deposits 3,665 4,030 3,613 3,919 3,439 3,753 3,529 3,516 3,638 25 Individuals, partnerships, and corporations 2,801 2,898 2,771 3,019 2,759 2,731 2,729 2,804 2.882 26 Other 864 1,131 842 899 679 1,022 800 713 756 27 Nontransaction accounts 96,978 94,859 94,269 92,427r %,200 94,112 %,273 97,968 97,401 28 Individuals, partnerships, and corporations 68,409 66,421 66,131 64,050* 67,395 66,395 68,454 69,857 69,699 29 Other 28,569 28,439 28,138 28,377 28,805 27,717 27,819 28,112 27,702 30 Borrowings from other than directly related institutions 100,834 107,677 103,524 104,131r 103,051 111,763 104,905 104,804 99,924 31 Federal funds purchased 51,208 58,151 56,087 55,760 51,131 61,162 49,828 49,472 45,861 32 From commercial banks in the United States 22,093 25,313 20,895 21,340 21,331 25,122 17,501 18,051 16,743 33 From others 29,115 32,838 35,192 34,419 29,800 36,040 32,326 31,421 29,118 34 Other liabilities for borrowed money 49,627 49,526 47,437 48,371r 51,920 50,600 55,078 55,332 54,063 35 To commercial banks in the United States 15,600 14,454 13,626 13,217r 13,705 12,917 13,945 14,537 14,520 36 To others 34,027 35,073 33,811 35,154r 38,215 37,683 41,133 40,795 39,543 37 Other liabilities to nonrelated parties 27,234 26,955 26,920 26,480 26,515 25,712 25,939 24,329 24,183 38 Total liabilities6 291,836 293,310 290,954 289,975r 291,929 2%,005 291,646 293,101 288,400 MEMO 39 Total loans (gross) and securities, adjusted .. 193,608 193,220 192,459 192,603r 193,346 194,216 191,134 191,071 191,171 40 Net due to related institutions abroad 23,337 17,550 19,559 24,007' 21,162 16,729 19,735 18,279 20,985 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 IItteemm D 19 e 8 c 7 . D 19 e 8 c 8 . D 19 e 8 c 9 . D 19 e 9 c 0 . D 19 e 9 c 1 . Sept. Oct. Nov. Dec. Jan. Feb. Commercial paper (seasonally adjusted unless noted otherwise) 1 AU issuers 358,997 458,464 525,831 561,142 530,300 532,426 532,342 534,%9 530,300 533,342r 527,942 Financial companies2 Dealer-placed paper 2 Total 102,742 159,777 183,622 221155,,112233 221144,,444455 221122,,003311 221199,,993388 221188,,114499 221144,,444455 222200,,220088 221100,,668877 3 Bank-related (not seasonally adjusted) 1,428 1,248 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Directly placed paper5 4 Total 174,332 194,931 210,930 199,835 183,195 118899,,223366 118800,,117799 118811,,558822 118833,,119955 118800,,222244rr 117788,,999955 5 Bank-related (not seasonally adjusted)3 43,173 43,155 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 6 Nonfinancial companies6 81,923 103,756 131,279 146,184 132,660 131,159 132,225 135,238 132,660 132,910 138,260 Bankers dollar acceptances (not seasonally adjusted)7 7 Total 70,565 66,631 62,972 54,771 43,770 43,462 44,910 43,947 43,770 43,112 41,305 Holder 8 Accepting banks 10,943 9,086 9,433 9,017 11,017 10,174 9,876 10,750 11,017 11,291 10,578 9 Own bills 9,464 8,022 8,510 7,930 9,347 8,237 8,306 8,754 9,347 9,273 8,831 10 Bills bought 1,479 1,064 924 1,087 1,670 1,937 11,,557700 1,996 1,670 2,018 1,747 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 1,678 1,862 1,705 1,739 1,574 1,364 13 Others 58,658 56,052 52,473 44,836 31,014 31,610 33,172 31,491 31,014 30,247 29,363 Basis 14 Imports into United States 16,483 14,984 15,651 13,0% 12,843 12,876 13,265 13,472 12,843 12,995 12,819 15 Exports from United States 15,227 14,410 13,683 12,703 10,351 10,966 11,105 10,486 10,351 9,740 9,315 16 All other 38,855 37,237 33,638 28,973 20,577 19,620 20,541 19,982 20,577 20,377 19,170 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 Rate Period Av r e a r t a e ge Period Av r e a r te a ge 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. Apr. 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 • June 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 Dec. Jan. Feb. Mar. Feb. 28 Mar. 6 Mar. 13 Mar. 20 Mar. 27 MONEY MARKET INSTRUMENTS 1 Federal funds'-2'3 9.21 8.10 5.69 4.43 4.03 4.06 3.98 3.96 4.08 3.95 4.04 3.94 2 Discount window borrowing 6.93 6.98 5.45 4.11 3.50 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 4.98 4.11 4.11 4.28 4.19 4.27 4.28 4.32 4.27 4 3-month 8.99 8.06 5.87 4.61 4.07 4.11 4.30 4.20 4.28 4.29 4.34 4.29 5 6-month 8.80 7.95 5.85 4.49 4.06 4.13 4.38 4.24 4.32 4.35 4.43 4.39 Finance paper, directly placed3'5'7 6 1-month 8.99 8.00 5.73 4.69 3.99 4.01 4.18 4.08 4.17 4.19 4.23 4.16 7 3-month 8.72 7.87 5.71 4.39 3.99 4.02 4.20 4.12 4.19 4.21 4.24 4.19 8 6-month 8.16 7.53 5.60 4.31 3.95 3.96 4.15 4.04 4.12 4.14 4.17 4.17 Bankers acceptances3'5'8 9 3-month 8.87 7.93 5.70 4.42 3.97 4.00 4.19 4.08 4.17 4.19 4.21 4.19 10 6-month 8.67 7.80 5.67 4.28 3.96 4.02 4.29 4.11 4.23 4.28 4.36 4.31 Certificates of deposit, secondary 11 1-month 9.11 8.15 5.82 4.84 4.07 4.05 4.23 4.14 4.22 4.24 4.28 4.22 12 3-month 9.09 8.15 5.83 4.47 4.05 4.07 4.25 4.16 4.22 4.24 4.29 4.25 13 6-month 9.08 8.17 5.91 4.41 4.07 4.13 4.42 4.27 4.34 4.41 4.50 4.42 14 Eurodollar deposits, 3-month3'10 9.16 8.16 5.86 4.48 4.06 4.05 4.26 4.16 4.20 4.28 4.30 4.26 U.S. Treasury bills Secondary market IS 3-month 8.11 7.50 5.38 4.07 3.80 3.84 4.04 3.94 4.04 4.02 4.06 4.03 16 6-month 8.03 7.46 5.44 4.10 3.87 3.93 4.18 4.03 4.13 4.16 4.23 4.18 17 1-year 7.92 7.35 5.52 4.17 3.95 4.08 4.40 4.19 4.32 4.43 4.50 4.40 Auction average3,5 " 18 3-month 8.12 7.51 5.42 4.12 3.84 3.84 4.05 3.96 4.02 4.02 4.09 4.08 19 6-month 8.04 7.47 5.49 4.16 3.88 3.94 4.19 4.08 4.10 4.13 4.27 4.27 20 I-year 7.91 7.36 5.54 4.20 3.84 4.01 4.37 n.a. n.a. 4.37 n.a. n.a. U.S. TREASURY NOTES AND BONDS Constant maturities12 21 1-year 8.53 7.89 5.86 4.38 4.15 4.29 4.63 4.41 4.55 4.64 4.73 4.64 22 2-year 8.57 8.16 6.49 5.03 4.96 5.21 5.69 5.37 5.53 5.66 5.84 5.75 23 3-year 8.55 8.26 6.82 5.39 5.40 5.72 6.18 5.86 6.00 6.14 6.33 6.26 24 5-year 8.50 8.37 7.37 6.19 6.24 6.58 6.95 6.70 6.79 6.91 7.08 7.00 25 7-year 8.52 8.52 7.68 6.69 6.70 6.96 7.26 7.04 7.13 7.24 7.37 7.29 26 10-year 8.49 8.55 7.86 7.09 7.03 7.34 7.54 7.37 7.45 7.54 7.63 7.56 27 30-year 8.45 8.61 8.14 7.70 7.58 7.85 7.97 7.88 7.92 7.97 8.03 7.97 Composite13 28 Over 10 years (long-term) 8.58 8.74 8.16 7.58 7.48 7.78 7.93 7.81 7.86 7.93 8.00 77..9933 STATE AND LOCAL NOTES AND BONDS Moody's series14 79 7.00 6.96 6.56 6.32 6.13 n.a. n.a. 6.27 6.35 6.45 6.48 6.50 30 Baa 7.40 7.29 6.99 6.65 6.47 n.a. n.a. 6.67r 6.77 6.88 6.91 6.94 31 Bond Buyer series 7.23 7.27 6.92 6.69 6.54 6.74 6.76 6.74 6.71 6.76 6.79 6.77 CORPORATE BONDS 32 Seasoned issues, all industries16 9.66 9.77 9.23 8.75 8.64 8.75 8.81 8.78 8.77 8.80 8.85 8.81 Rating group 33 9.26 9.32 8.77 8.31 88..2200 8.29 8.35 8.31 8.32 8.34 8.38 8.36 34 Aa 9.46 9.56 9.05 8.61 8.51 8.67 8.73 8.72 8.70 8.74 8.78 8.73 35 A 9.74 9.82 9.30 8.82 8.72 8.83 8.89 8.87 8.87 8.89 8.89 8.90 36 Baa 10.18 10.36 9.80 9.26 9.13 9.23 9.25 9.23 9.21 9.23 9.31 9.25 37 A-rated, recently offered utility bonds17 9.79 10.01 9.32 8.68 8.57 8.79 8.91 8.72 8.86 8.99 8.98 8.87 MEMO: Dividend-price ratio18 38 Preferred stocks 9.05 8.96 8.17 7.62 7.54 7.54 7.64 7.86 7.52 8.00 7.69 7.76 39 Common stocks 3.45 3.61 3.25 3.11 2.90 2.94 3.01 2.94 2.99 3.03 2.99 3.01 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 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Prices and trading volume (averages of daily figures) Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 180.13 183.66 206.35 208.29 213.33 212.55 213.10 213.25 214.26 229.34 228.12 225.21 2 Industrial 228.04 226.06 258.16 262.48 268.22 266.21 265.68 264.89 266.01 286.62 286.09 282.36 3 Transportation 174.90 158.80 173.97 177.15 178.42 177.99 187.45 188.52 185.47 201.55 205.53 204.09 4 Utility 94.33 90.72 92.64 90.05 92.38 93.72 95.25 96.78 98.08 99.31 96.19 94.16 5 Finance 162.01 133.21 150.84 151.69 157.70 157.69 158.94 159.78 159.96 174.50 174.05 173.49 6 Standard & Poor's Corporation (1941-43 = 10)1 323.05 335.01 376.20 380.23 389.40 387.20 386.88 385.87 388.51 416.08 412.56 407.36 7 American Stock Exchange (Aug. 31, 1973 = 50p 356.67 338.32 360.32 364.33 367.38 369.55 376.82 382.38 373.08 409.08 413.74 404.09 Volume of trading (thousands of shares) 8 New York Stock Exchange 165,568 156,359 179,411 157,871 171,490 163,242 177,502 187,191 197,914 239,903 226,476 185,581 9 American Stock Exchange 13,124 13,155 12,486 10,883 12,514 13,378 13,764 14,487 17,475 20,444 18,126 15,654 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers3 34,320 28,210 36,660 30,600 32,240 33,170 33,360 34,840 36,660 36,350 38,200 39,090 Free credit balances at brokers4 11 Margin accounts 7,040 8,050 8,290 6,545 7,040 6,950 6,965 7,040 8,290 7,865 7,620 7,350 12 Cash accounts 18,505 19,285 19,255 16,945 17,040 17,595 17,100 17,780 19,255 19,990 20,370 19,305 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 8 0 65 55 65 50 1. Effective July 1976, includes a new financial group, banks and insurance on securities other than options are the difference between the market value (100 companies. With this change the index includes 400 industrial stocks (formerly percent) and the maximum loan value of collateral as prescribed by the Board. 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40 Regulation T was adopted effective Oct. 15, 1934; Regulation U, effective May 1, financial. 1936; Regulation G, effective Mar. 11, 1968; and Regulation X, effective Nov. 1, 2. On July 5, 1983, the American Stock Exchange rebased its index, effectively 1971. cutting previous readings in half. On Jan. 1, 1977, the Board of Governors for the first time established in 3. Since July 1983, under the revised Regulation T, margin credit at broker- Regulation T the initial margin required for writing options on securities, setting dealers has included credit extended against stocks, convertible bonds, stocks it at 30 percent of the current market value of the stock underlying the option. On acquired through exercise of subscription rights, corporate bonds, and govern- Sept. 30,1985, the Board changed the required initial margin, allowing it to be the ment securities. Separate reporting of data for margin stocks, convertible bonds, same as the option maintenance margin required by the appropriate exchange or and subscription issues was discontinued in April 1984. self-regulatory organization; such maintenance margin rules must be approved by 4. Free credit balances are amounts in accounts with no unfulfilled commit- the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC ments to brokers and are subject to withdrawal by customers on demand. approved new maintenance margin rules, permitting margins to be the price of the 5. New series since June 1984. option plus 15 percent of the market value of the stock underlying the option. 6. These requirements, stated in regulations adopted by the Board of Gover- Effective June 8, 1988, margins were set to be the price option plus 20 percent nors pursuant to the Securities Exchange Act of 1934, limit the amount of credit of the market value of the stock underlying the option (or 15 percent in the case that can be used to purchase and carry "margin securities" (as defined in the of stock-index options). regulations) when such credit is collateralized by securities. Margin requirements Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic NonfinancialS tatistics • June 1992 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1991 1992 AAccccoouunntt 11998899 11999900 Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. SAIF-insured institutions 1 Assets 1,249,055 1,084,821 1,027,464 1,020,677 1,001,582 984,966 972,524 949,008 937,813 934,560 920,170 909,266 2 Mortgages 733,729 633,385 608,857 605,947 596,022 586,285 578,274 566,053 560,756 555577,,113344 551,140 554455,,668899 3 Mortgage-backed securities 170,532 155,228 143,968 141,582 139,536 137,098 135,751 135,253 134,967 133,344 129,583 112277,,441155 4 Contra-assets to mortgage assets1 . 25,457 16,897 14,413 14,438 14,625 14,247 14,036 13,126 12,446 12,307 12,287 11,669 5 Commercial loans 32,150 24,125 21,903 21,724 20,645 20,301 20,390 18,519 18,150 17,511 17,547 16,842 6 Consumer loans 58,685 48,753 46,702 45,827 45,174 44,352 43,259 42,423 43,061 42,761 41,769 40,934 7 Contra-assets to nonmortgage loans2 . 3,592 1,939 1,742 1,739 1,745 1,676 1,546 1,399 1,375 1,153 1,247 11,,110044 8 Cash and investment securities 166,053 146,644 132,878 134,012 130,443 130,263 132,010 125,905 120,793 123,422 120,129 118,539 9 Other3 116,955 95,522 89,301 87,757 86,133 82,590 78,422 75,380 73,907 73,847 73,847 72,620 10 Liabilities and net worth . 1,249,055 1,084,821 1,027,464 1,020,677 1,001,582 984,966 972,524 949,008 937,813 934,560 920,170 909,266 11 Savings capital 945,656 835,4% 806,266 801,678 792,923 775,434 763,751 749,363 741,360 737,554 732,070 649,045 12 Borrowed money 252,230 197,353 164,268 159,625 151,474 146,901 142,908 132,727 127,356 125,147 121,931 119,953 13 FHLBB 124,577 100,391 86,779 82,312 78,966 76,104 74,424 68,816 66,609 66,005 65,842 62,636 14 Other 127,653 96,962 77,489 77,313 72,508 70,797 68,484 63,911 60,747 59,142 56,089 57,317 15 Other 27,556 21,332 21,752 23,647 20,480 21,654 22,649 19,080 20,390 21,695 17,468 18,878 16 Net worth 23,612 30,640 35,178 35,720 36,705 40,976 43,216 47,838 48,706 50,163 48,701 49,197 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 Oct. Nov. Dec. Jan. Feb. Mar. U.S. budget2 1 Receipts, total 990,701 1,031,308 1,054,260 78,068 73,194 103,662 104,091 62,056 72,917 2 On-budget 727,035 749,652 760,377 57,216 50,898 80,172 79,937 38,290 46,353 3 Off budget 263,666 281,656 293,883 20,852 22,296 23,490 24,154 23,766 26,564 4 Outlays, total 1,144,020 1,251,766 1,323,750 114,082 117,748 106,199 119,742 110,817r 122,279 5 On-budget 933,107 1,026,711 1,082,067 94,099 95,455 95,500 97,189 87,593r 100,700 6 Off budget 210,911 225,065 241,685 19,983 22,293 10,698 22,553 23,224 21,579 7 Surplus or deficit (-), total -153,319 -220,469 -269,492 -36,014 -44,555 -2,537r -15,650 —48,761r -49,362 8 On-budget -206,072 -277,059 -321,690 -36,883 -44,557 -15,328 -17,252 -49,303r -54,347 9 Off budget 52,753 56,590 52,198 869 3 12,792 1,601 542 4,985 Source of financing (total) 10 Borrowing from the public 141,806 220,101 276,802 40,657 25,641 22,825 11,449 20,938 50,138 11 Operating cash (decrease, or increase (-)) ... 3,425 818 -1,329 -11,235 28,195 -24,258 925 30,975 -2,961 12 Other1 8,088 -451 -5,981 6,592 -9,281 3,970r 3,276 —3,152r 2,185 MEMO 13 Treasury operating balance (level, end of period) 40,973 40,155 41,484 52,719 24,524 48,782 47,857 16,882 19,843 14 Federal Reserve Banks 13,452 7,638 7,928 18,111 6,317 17,697 10,828 5,477 6,846 15 Tax and loan accounts 27,521 32,517 33,556 34,608 18,207 31,085 37,028 11,405 12,997 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 1991 1992 1990 1991 H2 HI Jan. Feb. RECEIPTS 1 All sources 1,031,308 1,054,260 548,861 503,123 540,504 519,288 104,091 62,056 72,917 2 Individual income taxes, net 466,884 467,827 243,087 230,745 232,389 233,983 60,451 22,213 19,503 4 3 P W re it s h i h d e e l n d t ial Election Campaign Fund ... 388,38 3 4 2 404,15 3 2 2 190,21 3 9 0 207,469 3 193,44 3 0 1 210,552 1 36,047 0 33,941 5 35,728 7 5 Nonwithheld 151,285 142,693 117,675 31,728 109,405 33,2% 25,601 1,056 3,925 6 Refunds 72,817 79,050 64,838 8,455 70,487 9,867 1,197 12,789 20,157 Corporation income taxes 7 Gross receipts 110,017 113,599 58,830 54,044 58,903 54,016 3,856 2,348 13,547 8 Refunds 16,510 15,513 8,326 7,603 7,904 7,956 864 1,129 1,805 9 Social insurance taxes and contributions, net 380,047 396,011 210,476 178,468 214,303 186,839 31,832 34,237 10 Employment taxes and contributions 353,891 370,526 195,269 167,224 199,727 175,802 30,797 29,964 33,557 11 Self-employment taxes and contributions 21,795 25,457 19,017 2,638 22,150 3,306 -1,361 1,472 1,853 12 Unemployment insurance 21,635 20,922 12,929 8,996 12,296 8,721 619 1,945 265 13 Other net receipts 4,522 4,563 2,278 2,249 2,279 2,317 415 373 415 14 Excise taxes 35,345 42,430 18,153 17,535 20,703 24,690 3,349 3,395 4,077 15 Customs deposits 16,707 15,921 8,096 8,568 7,488 8,694 1,367 1,291 1,412 16 Estate and gift taxes 11,500 11,138 6,442 5,333 5,631 5,521 930 733 879 17 Miscellaneous receipts 27,316 22,847 12,106 16,032 8,991 13,503 3,170 923 1,066 OUTLAYS 18 All types 1,251,776 1,323,750 640,867 647,461 632,153 693,760 119,742 110,817R 122,279 19 National defense 299,331 272,514 152,733 149,497 122,089 147,531 25,675 24,265 22,947 2 2 2 2 2 0 1 2 3 4 A N I G E n n g a e t e e n t r u i r r e c g n r r u a y a a l l t l t i u r o s e r c n e s i a o e l u n a r c c f e f e , a s i s r p a s n a c d e , e n a v n i d r o t n e m ch e n n o t logy ... 1 1 1 1 2 7 4 3 1 , , , , , 3 0 4 7 9 7 6 4 6 5 2 7 4 2 8 1 1 1 1 1 5 6 8 4 , , , , , 7 9 1 7 8 5 4 6 6 0 0 6 7 4 8 6 6 7 7 1 , , , , , 9 3 7 4 2 7 4 5 7 1 4 3 0 0 6 8 9 6 8 , , , , 8 0 9 9 9 7 3 4 8 7 8 3 3 9 1 8 7 7 7 , , , , 3 5 6 8 4 9 2 8 1 % 2 4 4 6 1 7 8 7 1 1 , , , , , 6 3 4 2 4 5 3 7 2 3 1 5 3 1 6 1 1 1 - , , , 2 8 6 3 2 3 7 7 0 3 2 8 8 8 1 1 1 1 , , , , 2 2 3 0 2 5 1 4 5 1 4 2 4 5 7 1 1 1 1 , , , , 4 3 6 5 5 1 9 7 9 2 1 7 5 2 7 25 Commerce and housing credit 67,160 75,639 38,672 37,491 17,992 36,579 4,736 -1,851 7,733 26 Transportation 29,485 31,531 13,754 16,218 14,748 17,094 2,546 2,111 2,462 27 Community and regional development 8,498 7,432 3,987 3,939 3,552 3,784 599 540 743 28 Education, training, employment, and social services 38,497 41,479 19,537 18,988 21,234 21,104 4,375 3,750 3,642 29 Health 57,716 71,183 29,488 31,424 35,608 41,458 6,688 6,808 7,423 30 Social security and medicare 346,383 373,495 175,997 176,353 190,247 193,156 33,497 32,937 33,485 31 Income security 147,314 171,618 78,475 75,948 88,778 87,215 17,663 18,465 19,754 32 Veterans benefits and services 29,112 31,344 15,217 15,479 14,326 17,425 2,465 3,142 1,833 3 3 4 3 G A e d n m e i r n a i l s t g r o a v ti e o r n n m of e j n u t stice 1 1 0 0 , , 0 7 0 2 4 4 1 1 1 2 , , 3 29 5 5 8 4 4, , 9 8 1 6 6 8 6 5 , , 9 2 7 6 6 5 6 5, , 2 1 1 8 2 7 6 6, ,5 8 8 21 6 1, 9 0 3 5 7 8 1, 7 1 7 4 6 5 1, 8 1 8 30 1 35 Net interest6 184,221 195,012 91,155 94,650 98,556 99,405 17,577 16,498 16,884 36 Undistributed offsetting receipts' -36,615 -39,356 -17,688 -19,829 -18,702 -20,435 -3,147 -2,851 -3,238 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 Nonfinancial Statistics • June 1992 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION1 Billions of dollars, end of month 1990 1991 1992 IItteemm Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 1 Federal debt outstanding 3,081.90 3,175.50 3,266.10 3,397.30 3,491.70 3,562.90 3,683.10 3,820.40r n.a. 2 Public debt securities 3,052.00 3,143.80 3,233.30 3,364.80 3,465.20 3,538.00 3,665.30 3,801.70 3,881.30 3 Held by public 2,329.30 2,368.80 2,437.60 2,536.60 2,598.40 2,642.90 2,745.70 2,833.00 n.a. 4 Held by agencies 722.70 775.00 795.80 828.30 866.80 895.10 919.60 968.70 n.a. 5 Agency securities 29.90 31.70 32.80 32.50 26.50 25.00 17.80 18.70 n.a. 6 Held by public 29.80 31.60 32.60 32.40 26.40 24.80 17.60 18.60 n.a. 7 Held by agencies .20 .20 .20 .10 .10 .10 .10 .10 n.a. 8 Debt subject to statutory limit 2,988.90 3,077.00 3,161.20 3,281.70 3,377.10 3,450.30 3,569.30 3,706.80 3,783.60 9 Public debt securities 2,988.60 3,076.60 3,160.90 3,281.30 3,376.70 3,449.80 3,569.00 3,706.40 3,783.20 10 Other debt2 .30 .40 .40 .40 .40 .40 .30 .40 .40 11 MEMO: Statutory debt limit 3,122.70 3,122.70 3,195.00 4,145.00 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 1992 TTyyppee aanndd hhoollddeerr 11998888 11998899 11999900 11999911 Q2 Q3 Q4 Q1 1 Total gross public debt 2,684.4 2,953.0 3,364.8 3,801.7 3,538.0 3,665.3 3,801.7 3,881.3 By type 2 Interest-bearing 2,663.1 2,931.8 3,362.0 3,798.9 3,516.1 3,662.8 3,798.9 3,878.5 3 Marketable 1,821.3 1,945.4 2,195.8 2,471.6 2,268.1 2,390.7 2,471.6 2,552.3 4 Bills 414.0 430.6 527.4 590.4 521.5 564.6 590.4 615.8 5 Notes 1,083.6 1,151.5 1,265.2 1,430.8 1,320.3 1,387.7 1,430.8 1,477.7 6 Bonds 308.9 348.2 388.2 435.5 411.2 423.4 435.5 443.8 7 Nonmarketable2 841.8 986.4 1,166.2 1,327.2 1,248.0 1,272.1 1,327.2 1,326.2 8 State and local government series 151.5 163.3 160.8 159.7 161.0 158.1 159.7 157.8 9 Foreign issues3 6.6 6.8 43.5 41.9 42.1 41.6 41.9 42.0 10 Government 6.6 6.8 43.5 41.9 42.1 41.6 41.9 42.0 11 Public .0 .0 .0 .0 .0 .0 .0 .0 12 Savings bonds and notes 107.6 115.7 124.1 135.9 131.3 133.5 135.9 139.9 13 Government account series4 575.6 695.6 813.8 959.2 883.2 908.4 959.2 956.1 14 Non-interest-bearing 21.3 21.2 2.8 2.8 21.9 2.5 2.8 2.8 By holder5 15 U.S. Treasury and other federal agencies and trust funds 589.2 707.8 828.3 968.7 895.1 919.6 968.7 n.a. 16 Federal Reserve Banks 238.4 228.4 259.8 288.4 255.1 264.7 288.4 n.a. 17 Private investors 1,858.5 2,015.8 2,288.3 2,563.2 2,397.9 2,489.4 2,563.2 n.a. 18 Commercial banks 184.9r 164.9r 171.5r 222.0 195.6r 216.9" 222.0 n.a. 19 Money market funds 11.8 14.9 45.4 80.0 55.2 64.5 80.0 n.a. 20 Insurance companies 118.6r 125.r 142.0r 168.0 152.5r 162.9r 168.0 n.a. 21 Other companies 87.1 93.4 108.9 150.8 130.8 142.0 150.8 n.a. 22 State and local treasuries 471.6r 487.5r 490.4r 490.0 489.3r 491.4r 490.0 n.a. Individuals 23 Savings bonds 109.6 117.7 126.2 138.1 133.2 135.4 138.1 n.a. 24 Other securities 79.2 98.7 107.6 125.8 110.3 122.1 125.8 n.a. 25 Foreign and international6 . 362.2 392.9 421.7r 457.7 439.8r 443.4r 457.7 n.a. 26 Other miscellaneous investors 433.0r 520.7r 674.4r 730.8 691.r 710.8r 730.8 n.a. 1. Components may not sum to totals because of rounding. funds are actual holdings; data for other groups are Treasury estimates. 2. Includes (not shown separately) securities issued to the Rural Electrification 6. Consists of investments of foreign balances and international accounts in the Administration, depository bonds, retirement plan bonds, and individual retire- United States. ment bonds. 7. Includes savings and loan associations, nonprofit institutions, credit unions, 3. Nonmarketable series denominated in dollars, and series denominated in mutual savings banks, corporate pension trust funds, dealers and brokers, certain foreign currency held by foreigners. U.S. Treasury deposit accounts, and federally-sponsored agencies. 4. Held almost entirely by U.S. Treasury and other federal agencies and trust SOURCES. Data by type of security, U.S. Treasury Department, Monthly funds. Statement of the Public Debt of the United States; data by holder, the Treasury 5. Data for Federal Reserve Banks and U.S. government agencies and trust Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance All 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions' Millions of dollars, daily averages, par value 1992 1992, week ending Item Jan. Feb Jan. 29 Feb. 5 Feb. 12 Feb. 19 Feb. 26 Mar. 4 Mar. 11 IMMEDIATE TRANSACTIONS2 By type of security U.S. Treasury securities 1 Bills 30,957 37,212 36,927 32,335 32,442 39,257 37,948 34,829 41,031 41,049 Coupon securities, by maturity 2 Less than 3.5 years 32,848 48,693 50,004 51,138 44,856 51,448 51,306 50,530 50,196 42,751 3 3.5 to 7.5 years 29,975 43,820 32,906 40,483 32,179 32,056 33,518 33,559 33,266 31,151 4 7.5 to 15 years 14,037 19,367 17,537 18,515 16,010 21,845 18,904 14,364 14,253 15,785 5 15 years or more 14,504 17,455 14,718 14,787 14,548 13,809 19,831 11,672 14,638 14,612 Federal agency securities Debt, maturing in 6 Less than 3.5 years 4,636 5,301 5,702 6,276 5,918 6,017 4,540 6,431 5,094 4,010 7 3.5 to 7.5 years 610 652 615 620 515 733 500 563 830 711 8 7.5 years or more 720 681 596 622 664 545 424 633 875 654 Mortgage-backed securities 9 Pass-throughs 11,891 13,669 12,359 10,624 10,593 13,566 13,010 12,714 9,800 14,170 10 All others 2,657 2,948 2,646 2,978 2,732 2,955 2,076 2,736 2,664 3,090 By type of counterparty Primary dealers and brokers 11 U.S. Treasury securities 73,458 105,664 95,816 103,810 89,504 101,665 98,125 91,728 96,260 93,941 Federal agency securities 12 Debt 1,383 1,456 1,463 1,534 1,281 1,914 1,037 1,437 1,521 1,146 13 Mortgage-backed 6,227 7,284 6,590 5,818 5,748 7,257 5,957 7,212 5,892 8,244 Customers 14 U.S. Treasury securities 48,862 60,884 56,276 53,448 50,531 56,750 63,381 53,226 57,123 51,407 Federal agency securities 15 Debt 4,585 5,178 5,451 5,984 5,816 5,381 4,427 6,191 5,278 4,228 16 Mortgage-backed 8,321 9,332 8,416 7,784 7,576 9,265 9,129 8,238 6,573 9,016 FUTURE AND FORWARD TRANSACTIONS By type of deliverable security U.S. Treasury securities 17 Bills 3,295 4,078 4,242 4,234 3,601 3,313 3,870 4,503 7,619 6,484 Coupon securities, by maturity 18 Less than 3.5 years 1,801 2,177 2,014 2,552 1,667 1,836 2,470 1,955 2,215 1,930 19 3.5 to 7.5 years 1,096 1,446 1,311 1,477 1,032 1,118 1,172 1,528 1,946 1,487 20 7.5 to 15 years 1,052 1,720 1,928 1,680 1,516 2,639 2,077 1,365 1,877 1,510 21 15 years or more 7,264 11,407 10,178 10,259 9,653 8,985 12,313 9,614 11,087 9,385 Federal agency securities Debt, maturing in 22 Less than 3.5 years 119 67 38 14 22 97 10 11 23 3.5 to 7.5 years 39 75 44 79 50 49 33 25 24 7.5 years or more 30 26 51 33 103 49 12 28 Mortgage-backed 25 Pass-throughs3 9,105 17,241r 14,856 15,722 16,928r 18,787 12,576 11,909 13,844 16,000 26 Others 1,308 2,099 2,299 2,657 2,523 2,653 1,693 2,302 2,287 1,646 OPTION TRANSACTIONS5 By type of underlying security U.S. Treasury, coupon securities, by maturity 27 Less than 3.5 years 1,074 1,527 1,809 1,390 1,177 1,478 2,626 2,192 991 1,212 28 3.5 to 7.5 years 526 368 314 211 423 186 262 397 368 461 29 7.5 to 15 years 386 750 718 1,323 516 522 678 1,235 302 277 30 15 years or more 2,019 2,618 2,655 2,877 2,543 2,212 2,924 3,253 1,899 1,972 Federal agency, mortgagebacked securities 31 Pass-throughs 480 722 438 508 1,287 555 385 458 1. Transactions are market purchases and sales of securities as reported to the 4. Futures transactions are standardized agreements arranged on an exchange. Federal Reserve Bank of New York by the U.S. government securities dealers on Forward transactions are agreements made in the over-the-counter market that its published list of primary dealers. Averages for transactions are based on the specify delayed delivery. All futures transactions are included regardless of time number of trading days in the period. Immediate, forward, and future transactions to delivery. Forward contracts for U.S. Treasury securities and federal agency are reported at principal value, which does not include accrued interest; option debt securities are included when the time to delivery is more than five days. transactions are reported at the face value of the underlying securities. Forward contracts for mortgage-backed securities are included when the time to Dealers report cumulative transactions for each week ending Wednesday. delivery is more than thirty days. 2. Transactions for immediate delivery include purchases or sales of securities 5. Options transactions are purchases or sales of put-and-call options, whether (other than mortgage-backed agency securities) for which delivery is scheduled in arranged on an organized exchange or in the over-the-counter market, and include five business days or less and "when-issued" securities that settle on the issue options on futures contracts on U.S. Treasury and federal agency securities. date of offering. Transactions for immediate delivery of mortgage-backed securities NOTE. In tables 1.42 and 1.43, the term "n.a." refers to data that are not include purchases and sales for which delivery is scheduled in thirty days or less. published because of insufficient activity. Stripped securities are reported at market value by maturity of coupon or corpus. Data formerly shown under option transactions for U.S. Treasury securities, 3. Includes such securities as collateralized mortgage obligations (CMOs), real bills; Federal agency securities, debt; and mortgage-backed securities, other than estate mortgage investment conduits (REMICs), interest only securities (IOs), pass-throughs are no longer available because of insufficient activity. and principal only securities (POs). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic NonfinancialS tatistics • June 1992 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 1991 1992 1992, week ending IItteemm Dec. Jan. Feb. Jan. 29 Feb. 5 Feb. 12 Feb. 19 Feb. 26 Mar. 4 Mar. 11 Mar. 18 Positions2 NET IMMEDIATE TRANSACTIONS3 By type of security U.S. Treasury securities 1 Bills 16,998 12,607 11,229 15,153 11,865 11,393 11,705 7,686 16,945 17,365 1177,,448899 Coupon securities, by maturity 2 Less than 3.5 years 5,572 2,425 3,136 -1,623 -680 5,894 1,691 4,880 2,364 -874 --33,,554466 3 3.5 to 7.5 years -6,646 -7,485 -12,891 -10,009 -11,956 -15,707 -14,980 -9,209 -11,592 -7,546 -9,3% 4 7.5 to 15 years -5,919 -6,185 -3,040 -6,158 -6,176 -991 -3,090 -2,679 -3,323 -4,875 -5,770 5 15 years or more -1,471 -1,643 -1,755 -1,553 -2,932 -3,974 -279 -259 -1,549 -2,075 -3,748 Federal agency securities Debt, maturing in 6 Less than 3.5 years 4,474 4,190 5,788 5,175 6,285 5,989 6,673 4,514 5,403 3,883 55,,559988 7 3.5 to 7.5 years 2,720 3,536 4,208 3,961 3,975 4,163 4,483 4,184 4,120 3,850 3,518 8 7.5 years or more 3,711 3,597 3,705 3,503 3,683 3,667 3,455 4,029 3,656 3,731 3,598 Mortgage-backed securities 9 Pass-throughs 22,743 26,067 25,445 24,441 20,411 33,198 26,582 23,810 16,830 25,097 3333,,446622 10 All others . 17,578 18,947 16,417 17,374 19,413 17,234 15,774 14,475 15,546 14,383 12,738 Other money market instruments 11 Certificates of deposit 2,928 3,442 2,717 3,289 2,666 2,534 2,748 3,133 2,182 2,651 2,981 12 Commercial paper 5,420 5,228 6,266 5,352 5,036 6,541 6,357 6,827 6,153 5,156 4,822 13 Bankers acceptances 1,413 1,195 1,456 995 1,380 1,395 1,555 1,569 1,226 908 845 FUTURE AND FORWARD TRANSACTIONS5 By type of deliverable security U.S. Treasury securities 14 Bills -9,264 -11,740 -7,362 -12,426 -11,004 -9,993 -6,738 -4,978 -2,168 -13 --4422 Coupon securities, by maturity 15 Less than 3.5 years 2,136 1,776 1,810 2,526 2,067 1,745 1,589 1,921 1,786 1,750 11,,228833 16 3.5 to 7.5 years -571 2,550 2,817 2,559 1,973 3,408 3,609 2,453 1,849 2,256 3,745 17 7.5 to 15 years -655 576 228 599 889 224 -235 -53 875 1,092 1,297 18 15 years or more -5,094 -4,835 -5,093 -4,643 -4,360 -3,301 -3,901 -7,977 -6,388 -5,267 -5,551 Federal agency securities Debt, maturing in 19 Less than 3.5 years 110 313 -24 14 -28 -54 -49 30 -19 -32 --2211 20 3.5 to 7.5 years 117 127 -37 15 -49 238 -5 -23 29 39 100 21 7.5 years or more 28 17 59 4 -38 166 -7 19 65 -51 % Mortgage-backed securities 22 Pass-throughs -7,180 -7,680"" -8,152 -2,399 -548 -17,100 -10,319 -8,942 1,829 -6,309 --1122,,337711 23 All others 1,457 2,511 3,851 3,922 1,710 4,339 4,430 4,541 3,318 2,767 3,608 24 Certificates of deposit -192,213 -144,4% -112,128 -116,867 -114,105 -118,244 -107,153 -108,811 -113,906 -131,487 -128,847 Financing6 Reverse repurchase agreements 25 Overnight and continuing 169, %5 203,915 211,815 195,723 215,129 200,490 220,692 208,689 219,297 208,649 217,530 26 Term 231,570 277,551 278,414 294,626 290,397 305,654 259,834 270,360 257,030 265,674 264,365 Repurchase agreements Z! Overnight and continuing 271,474 320,575' 322,440 313,548 322,953 306,038 331,275 328,160 325,893 318,936 333,579 28 Term 223,264 258,693 264,340 284,050 275,376 292,167 248,460 254,891 240,120 241,764 246,613 Securities borrowed 29 Overnight and continuing 60,006' 66,170r 71,618 67,734r 72,346 73,806 72,487 73,132 71,504 76,597 75,785 30 Term 29,811 32,028 31,200 33,626 31,536 31,454 28,990 32,904 31,230 32,317 31,380 Securities loaned 31 Overnight and continuing 5,867' 7,327r 7,703 7,282r 7,071 9,548 10,346 8,7% 7,506 7,769 6,912 32 Term 897 1,556 1,436 3,436 1,201 1,049 1,238 2,143 1,544 1,754 1,698 Collateralized loans 33 Overnight and continuing 10,755 18,459 16,951 19,729 18,488 16,440 15,862 17,883 15,944 15,983 16,815 MEMO: Matched book7 Reverse repurchases 34 Overnight and continuing 117,204 144,047 150,143 139,527 154,507 144,555 153,531 147,813 153,438 151,839 155,228 35 Term 198,594 238,005 234,039 250,915 246,586 258,946 213,652 227,887 216,934 224,788 222,781 Repurchases 36 Overnight and continuing 138,847 173,994 176,327 165,516 178,737 168,701 174,649 181,234 182,566 179,428 181,513 37 Term 170,965 194,820 197,647 213,751 209,821 225,018 180,511 186,975 178,373 179,898 180,882 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. 5. Futures 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance All 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1991 1992 Agency 1988 1989 Sept. Oct. Nov. Jan. 1 Federal and federally sponsored agencies 341,386 381,498 411,805 434,668 436,189 438,032 439,670 442,772 440,317 2 Federal agencies 37,981 35,668 35,664 42,159 42,409 42,638 42,951 41,035 42,872 3 Defense Department1 13 8 7 7 7 7 7 7 7 4 Export-Import Bank • 11,978 11,033 10,985 11,376 11,267 11,267 11,267 9,809 9,809 5 Federal Housing Administration 183 150 328 393 336 337 365 397 335 6 Government National Mortgage Association participation certificates 1,615 0 0 0 0 0 0 0 0 7 Postal Service6 6,103 6,142 6,445 6,948 8,421 8,421 8,421 8,421 8,421 8 Tennessee Valley Authority 18,089 18,335 17,899 23,435 22,378 22,606 22,891 22,401 24,300 9 United States Railway Association6 0 0 0 0 0 0 0 0 0 10 Federally sponsored agencies7 303,405 345,830 375,407 392,509 393,780 395,394 3%,719 401,737 397,445 11 Federal Home Loan Banks 115,727 135,836 136,108 117,895 106,510 105,945 107,344 107,543 104,607 12 Federal Home Loan Mortgage Corporation 17,645 22,797 26,148 30,941 31,502 31,818 31,099 30,262 29,332 13 Federal National Mortgage Association 97,057 105,459 116,064 123,403 127,460 128,594 130,197 133,937 133,988 14 Farm Credit Banks8 55,275 53,127 54,864 53,590 52,010 52,488 52,105 52,199 51,673 15 Student Loan Marketing Association9 16,503 22,073 28,705 34,194 36,821 37,072 36,497 38,319 38,419 16 Financing Corporation 1,200 5,850 8,170 8,170 8,170 8,170 8,170 8,170 8,170 17 Farm Credit Financial Assistance Corporation 0 690 847 1,261 1,261 1,261 1,261 1,261 1,261 18 Resolution Funding Corporation 0 0 4,522 23,055 29,9% 29,9% 29,996 29,9% 29,9% MEMO 19 Federal Financing Bank debt13 152,417 142,850 134,873 179,083 194,234 192,747 194,837 185,576 183,098 Lending to federal and federally sponsored agencies 20 Export-Import Bank 11,972 11,027 10,979 11,370 11,261 11,261 11,261 9,803 9,803 21 Postal Service6 5,853 5,892 6,195 6,698 8,201 8,201 8,201 8,201 8,201 22 Student Loan Marketing Association 4,940 4,910 4,880 4,850 4,850 4,820 4,820 4,820 4,820 23 Tennessee Valley Authority 16,709 16,955 16,519 14,055 11,875 11,375 11,375 10,725 10,725 24 United States Railway Association6 0 0 0 0 0 0 0 0 0 Other Lending14 25 Farmers Home Administration 59,674 58,496 53,311 52,324 50,694 48,534 48,534 48,534 48,534 26 Rural Electrification Administration 21,191 19,246 19,265 18,890 18,597 18,599 18,628 18,562 18,534 27 Other 32,078 26,324 23,724 70,8% 88,756 89,957 92,018 84,931 82,481 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 NonfinancialS tatistics • June 1992 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1991 1992 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11998899 11999900 11999911 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. 1 All issues, new and refunding1 113,646 120,339 154,402 15,744 13,240 11,357 17,734 15,796 12,612 12,256 15,956 By type of issue 2 General obligation 35,774 39,610 55,100 5,919 5,253 3,088 6,510 5,871 3,954 5,643 6,212 3 Revenue 77,873 81,295 99,302 9,825 7,987 8,269 11,224 9,925 8,658 6,613 9,744 By Type of issuer 4 State 11,819 15,149 24,939 2,328 3,371 7,195 1,171 1,671 1,036 3,021 3,174 5 Special district or statutory authority2 71,022 72,661 80,614 8,890 6,272 605 10,817 9,435 8,243 5,162 7,511 6 Municipality, county, or township 30,805 32,510 48,849 4,526 3,597 3,557 5,746 4,690 3,333 4,073 5,271 7 Issues for new capital, total 84,062 103,235 116,953 12,164 9,586 8,967 13,495 12,020 7,127 7,691 10,637 By use of proceeds 8 Education 15,133 17,042 21,664 1,585 1,507 1,511 1,297 1,924 2,385 1,974 1,075 9 Transportation 6,870 11,650 13,395 720 1,248 1,744 2,682 488 1,194 1,643 1,412 10 Utilities and conservation 11,427 11,739 21,447 1,673 1,573 1,825 1,915 1,931 1,953 894 2,104 11 Social welfare 16,703 23,099 26,121 4,119 2,793 1,276 2,621 3,070 868 1,683 1,811 12 Industrial aid 5,036 6,117 8,542 676 916 973 349 1,083 218 141 528 13 Other purposes 28,894 34,607 n.a. 3,391 1,549 1,638 4,631 3,524 n.a. n.a. 3,707 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 TTyyppee ooff iissssuuee,, ooffffeerriinngg,, oorr iissssuueerr 11998899 11999900 11999911 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. 1 All issues' 377,836r 339,052r 455,291r 23,155 35,472r 32,180 34,893 34,286 32,391 45,000r 37,137 2 Bonds2 319,965r 298,814r 389,933r 20,473 28,742r 26,759 26,029 25,233 24,871 38,202r 27,601 By type of offering 3 Public, domestic 179,694r 188,778r 287,041r 18,899 26,867r 23,856 23,469 23,164 23,326 34,530" 26,200 4 Private placement, domestic3 117,420 86,982r 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 27,962r 1,574 1,875 2,902 2,560 2,070 1,544 3,671r 1,700 By industry group 6 Manufacturing 7766,,117755rr 52,635r 85,535r 3,600 7,643 6,994r 4,732 4,536 4,956 7,302r 3,844 7 Commercial and miscellaneous 49,465r 40,018r 37,809" 1,500 1,388 967r 1,209 2,044 1,977 2,818r 1,664 8 Transportation 10,032 12,71lr 13,628 697 809 231 744 180 150 455r 1,004 9 Public utility 18,656r 17,621 23,994r 1,457 1,897 1,315 1,430 3,073 2,238 3,761r 3,569 10 Communication 8,461 6,597 9,331 749 668 408 958 226 1,085 2,467r 416 11 Real estate and financial 157,176r 169,23lr 219,637r 12,471 16,337r 16,844 16,957 15,175 14,464 21,399" 17,104 12 Stocks2 57,870 40,165 n.a. 2,682 6,730 5,421 8,864 9,053 7,520 6,798 9,536 By type of offering 13 Public preferred 6,194 3,998 17,408 203 1,952 666 3,527 3,240 2,771 739 4,306 14 Common 26,030 19,443 47,860 2,479 4,778 4,755 5,337 5,813 4,749 6,060 5,230 15 Private placement 25,647 16,736 n.a. 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. 685 3,167 1,842 3,623 4,054 2,684 2,040 2,541 17 Commercial and miscellaneous 7,446 10,171 n.a. 1,427 2,050 858 2,095 2,158 2,535 1,233 3,194 18 Transportation 1,929 369 n.a. 18 56 0 16 0 0 426 78 19 Public utility 3,090 416 n.a. 143 150 55 320 174 233 200 489 20 Communication 1,904 3,822 n.a. 46 8 0 25 84 17 163 n.a. 21 Real estate and financial 34,028 19,738 n.a. 350 1,298 2,666 2,622 2,583 2,014 2,689 3,234 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 July Aug. Sept. Oct. Nov. Dec. Janr Feb. 1 Sales of own shares2 344,420 464,488 39,329 38,014 37,316 45,218 41,365 51,018 66,048 48,007 288,441 342,088 28,767 28,128 26,319 27,957 28,454 39,050 41,917 30,867 3 Net sales 55,979 122,400 10,562 9,886 10,997 17,261 12,911 11,968 24,131 17,140 4 Assets4 568,517 807,001 690,486 712,782 730,426 753,344 752,798 807,077 823,767 846,880 5 Cash5 48,638 60,937 55,293 52,791 53,884 59,902 59,689 60,292 62,289 63,410 6 Other 519,875 746,064 635,193 659,992 676,543 695,492 693,109 746,785 761,478 783,470 1. Data on sales and redemptions exclude money market mutual funds but 4. Market value at end of period, less current liabilities. include limited-maturity municipal bond funds. Data on asset positions exclude 5. Includes all U.S. Treasury securities and other short-term debt securities. both money market mutual funds and limited-maturity municipal bond funds. SOURCE. Investment Company Institute. Data based on reports of membership, 2. Includes reinvestment of dividends. Excludes reinvestment of capital gains which comprises substantially all open-end investment companies registered with distributions. the Securities and Exchange Commission. Data reflect underwritings of new 3. Does not includes sales or redemptions resulting from transfers of shares companies. into or out of money market mutual funds within the same fund family. 1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION Billions of dollars; quarterly data at seasonally adjusted annual rates 1990 1991 AAccccoouunntt 11998899 11999900 11999911rr Ql Q2 Q3 Q4 Ql Q2 Q3 Q4r 1 Profits with inventory valuation and capital consumption adjustment 351.7 319.0 306.8 340.2 339.8 299.8 296.1 302.1 303.5 306.1 315.6 2 Profits before taxes 344.5 332.3 312.4 336.6 331.6 335.1 326.1 309.1 306.2 318.2 316.1 3 Profits tax liability 138.0 135.3 124.5 137.6 137.9 138.8 127.1 119.4 123.5 128.6 126.4 4 Profits after taxes 206.6 197.0 187.9 199.1 193.7 196.3 199.0 189.7 182.7 189.6 189.7 5 Dividends 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 50.2 66.7 61.2 62.5 62.8 51.9 46.1 51.5 51.2 7 Inventory valuation -17.5 -14.2 3.1 -6.6 3.8 -32.6 -21.2 6.7 9.9 -4.8 .7 8 Capital consumption adjustment 24.7 .8 -8.7 10.2 4.4 -2.7 -8.8 -13.6 -12.6 -7.3 -1.3 SOURCE. Survey of Current Business (U.S. Department of Commerce). 1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment Billions of dollars; quarterly data at seasonally adjusted annual rates 1990 1991 19921 IInndduussttrryy 11999900 11999911 1199992211 Q3 Q4 Ql Q2 Q3 Q4 Ql Q2 1 532.61 529.20 553.68 534.11 530.13 535.50 524.57 527.86 528.88 544.99 557.48 Manufacturing 7 82.58 77.95 78.18 82.48 79.03 81.24 79.69 74.51 76.36 80.32 79.63 3 110.04 105.66 104.63 111.57 110.69 109.90 107.66 102.54 102.54 101.52 106.64 Nonmanufacturing 4 9.88 10.02 9.12 9.97 10.12 9.89 10.09 10.09 10.00 9.12 9.29 Transportation 5 6.40 5.92 6.44 5.66 6.81 5.59 6.27 6.50 5.32 5.33 6.53 6 Air 8.87 10.22 10.43 9.55 7.54 11.18 10.10 9.81 9.79 9.21 9.61 7 Other 6.20 6.55 7.56 5.87 6.82 6.48 6.68 6.52 6.54 6.88 7.70 Public utilities 8 44.10 43.67 47.67 43.80 45.88 43.36 42.87 43.09 45.36 47.08 49.22 9 23.11 22.84 23.63 23.88 24.36 23.68 21.71 23.38 22.60 23.32 23.17 1100 241.43 246.37 266.00 241.32 238.87 244.19 239.50 251.42 250.37 262.20 265.68 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 NonfinancialS tatistics • June 1992 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities Billions of dollars, end of period; not seasonally adjusted 1990 1991 AAccccoouunntt 11998888 11998899 11999900 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ASSETS 1 Accounts receivable, gross1 426.2 445.7 486.7 468.8 474.0 486.7 478.9 487.9 487.8 491.6 2 Consumer 146.2 140.8 136.0 138.6 140.9 136.0 131.6 133.9 132.5 129.6 3 Business 236.5 256.0 290.8 274.8 275.4 290.8 290.0 295.5 296.6 303.8 4 Real estate 43.5 48.9 59.9 55.4 57.7 59.9 57.3 58.5 58.7 58.1 5 LESS: Reserves for unearned income 50.0 52.0 56.6 54.3 55.1 56.6 57.0 58.7 59.6 58.5 6 Reserves for losses 7.3 7.7 9.2 8.2 8.6 9.2 10.3 10.8 12.9 13.2 7 Accounts receivable, net 368.9 386.1 420.9 406.3 410.3 420.9 411.6 418.4 415.2 419.9 8 All other 72.4 91.6 99.6 95.5 102.8 99.T 103.4 106.1 111.9 116.5 9 Total assets 441.3 477.6 520.6 501.9 513.1 520.6 515.0 524.5 527.1 536.4 LIABILITIES AND CAPITAL 10 Bank loans 15.4 14.5 19.4 15.8 15.6 19.4 22.0 22.7 24.0 24.3 11 Commercial paper 142.0 149.5 152.7 152.4 148.6 152.7 141.2 140.6 138.1 141.3 Debt 12 Other short-term n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 13 Long-term n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 14 Due to parent 50.6 63.8 82.7 72.8 82.0 82.7 77.8 81.7 87.4 83.0 15 Not elsewhere classified 137.9 147.8 157.0 153.0 156.6 157.0 162.4 164.2 163.4 170.6 16 All other liabilities 59.8 62.6 66.0 66.1 68.7 66.0 68.0 72.2 72.1 73.7 17 Capital, surplus, and undivided profits 35.6 39.4 42.8 41.8 41.6 42.8 43.7 43.0 42.1 43.5 18 Total liabilities and capital 441.3 477.6 520.6 501.9 513.1 520.6 515.0 524.5 527.1 536.4 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 Sept. Oct. Nov. Dec. Jan. Feb. 1 Total 258,957 292,638 309,709 307,599 310,876 311,632 309,709 306,905 308,162 Retail financing of installment sales 2 Automotive 39,479 38,110 33,204 34,119 34,167 33,664 33,204 31,764 31,886 3 Equipment 29,627 31,784 35,404 34,822 33,989 33,375 35,404 33,841 34,433 4 Pools of securitized assets 698 951 819 797 769 746 819 879 878 Wholesale 5 Automotive 33,814 32,283 32,487 30,072 31,831 32,292 32,487 31,788 32,877 6 Equipment 6,928 11,569 9,790 10,594 11,075 10,414 9,790 9,274 9,302 7 All other 9,985 9,126 8,459 8,695 8,407 8,418 8,459 8,072 8,271 8 Pools of securitized assets 0 2,950 4,905 4,053 4,458 4,639 4,905 4,661 4,690 Leasing 9 Automotive 26,804 39,129 44,445 45,387 45,837 45,299 44,445 44,277 43,009 10 Equipment 68,240 75,626 87,821 86,732 87,701 90,079 87,821 88,849 88,958 11 Pools of securitized assets 1,247 1,849 1,820 1,844 1,803 1,885 1,820 1,837 1,753 12 Loans on commercial accounts receivable and factored commercial accounts receivable 18,511 22,475 23,859 23,204 23,295 23,338 23,859 24,600 24,575 13 All other business credit 23,623 26,784 26,697 27,279 27,544 27,483 26,697 27,062 27,531 Net change (during period) 1 Total 24,066 33,681 17,071 2,576 3,277 756 -1,923 -2,804 1,257 Retail financing of installment sales 7 Automotive 2,269 -1,369 -4,906 -547 48 -503 -460 -1,440 122 3 Equipment 1,442 2,157 3,619 1,676 -833 -614 2,029 -1,562 591 4 Pools of securitized assets -26 253 -132 -36 -28 -23 73 60 -1 Wholesale 5 Automotive 861 -1,532 204 -564 1,759 461 195 -699 1,089 6 Equipment 957 4,641 -1,779 -37 481 -662 -624 -516 28 7 All other 628 -859 -668 -17 -289 11 41 -387 199 8 Pools of securitized assets 0 2,950 1,955 545 405 181 266 -244 29 Leasing 9 Automotive 2,111 12,325 5,316 759 450 -538 -854 -168 -1,268 10 Equipment 10,581 7,386 12,195 587 969 2,378 -2,258 1,028 109 11 Pools of securitized assets 526 602 -29 165 -41 82 -65 17 -84 12 Loans on commercial accounts receivable and factored commercial accounts receivable 825 3,964 1,383 -162 91 43 520 741 -25 13 All other business credit Digitized for FRASER 1. Data in this table also appear in the Board's G.20 (422) monthly statistical 2. Data on pools of securitized assets are not seasonally adjusted, http://fraser.strloelueaissef.e Fdo.ro orrgd/e ring address, see inside front cover. Federal Reserve Bank of St. Louis

Real Estate A35 1.53 MORTGAGE MARKETS Conventional Mortgages on New Homes Millions of dollars, except as noted 1991 1992 IItteemm 11998899 11999900 11999911 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms1 1 Purchase price (thousands of dollars) 159.6 153.2 155.0 157.8 153.4 162.6 159.1 153.9 154.7 167.0 2 Amount of loan (thousands of dollars) 117.0 112.4 114.0 114.3 115.0 116.0 113.8 114.9 110.2 123.2 3 Loan-price ratio (percent) 74.5 74.8 75.0 73.3 76.5 73.5 73.1 75.2 72.9 76.1 4 Maturity (years) 28.1 27.3 26.8 25.9 27.5 26.4 26.4 26.2 24.5 25.2 J Fees and charges (percent of loan amount)2 2.06 1.93 1.71 1.86 1.61 1.53 1.50 1.85 1.84 1.75 6 Contract rate (percent per year) 9.76 9.68 9.02 9.00 8.78 8.38 8.28 8.17 8.29 8.21 Yield (percent per year) 1 OTS series3 10.11 10.01 9.30 9.30 9.04 8.64 8.53 8.49 8.65 8.51 8 HUD series4 10.21 10.08 9.20 8.88 8.76 8.67 8.30 8.69 8.74 8.91 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (HUD series)5 10.24 10.17 9.25 9.06 8.71 8.69 8.10 8.72 8.74 8.85 10 GNMA securities 9.71 9.51 8.59 8.60 8.34 8.09 7.81 7.81 8.01 8.20 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 104,974 113,329 122,837 124,954 125,884 126,624 128,983 131,058 133,399 136,506 12 FHA/VA-insured 19,640 21,028 21,702 21,636 21,576 21,547 21,796 21,981 21,980 21,902 13 Conventional 85,335 92,302 101,135 103,318 104,308 105,077 107,187 109,077 111,419 114,604 Mortgage transactions (during period) 14 Purchases 22,518 23,959 37,202 3,032 3,408 3,299 5,114 4,809 5,358 7,282 Mortgage commitments (during period)1 15 Issued8 n.a. 23,689 40,010 3,196 4,122 3,806 5,285 7,202 6,639 6,834 16 To sell9 n.a. 5,270 7,608 762 917 569 78 249 343 1,143 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)9 17 Total 20,105 20,419 24,131 23,906 24,922 25,239 26,809 27,384 n.a. n.a. 18 FHA/VA-insured 590 547 484 471 462 468 460 456 n.a. n.a. 19 Conventional 19,516 19,871 23,283 23,435 24,460 24,772 26,349 26,928 n.a. n.a. Mortgage transactions (during period) 20 Purchases 78,588 75,517 97,727 9,155 8,644 10,170 11,475 11,475 n.a. n.a. 21 Sales 73,446 73,817 92,478r 9,305 7,449 9,545 9,537r 10,521r 12,061 14,002 Mortgage commitments (during period)10 22 Contracted 88,519 102,401 114,031 7,468 6,358 11,594 16,961 15,683 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 Financial Statistics • June 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 3,676,616 3,912,217 3,912,217 3,947,700 3,999,621 4,016,644 4,048,767 By type of property 2 One- to four-family residences 2,201,231 2,549,935 2,765,111 2,765,111 2,790,684 2,837,989 2,870,100 2,904,287 3 Multifamily residences 291,405 303,416 307,069 307,069 310,746 311,817 308,357 310,276 4 Commercial 692,236 739,240 756,075 756,075 762,328 766,043 755,041 750,473 5 Farm 85,247 84,025 83,962 83.962 83,942 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 334,367 389,632 455,698 455,698 461,916 476,188 478,678 484,5% 9 Multifamily 33,912 38,876 37,008 37,008 38,379 37,562 36,394 37,523 10 Commercial 290,254 321,906 334,520 334,520 338,697 339,433 337,331 335,357 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,%8 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 Administration3 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 18,496 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 1,144,876 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 Administration5 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 426,229 588,815 636,955 636,955 636,585 638,457 644,241 648,256 60 One- to four-family 259,971 414,763 449,440 449,440 447,344 447,339 451,988 454,841 61 Multifamily 79,209 81,634 84,408 84,408 84,227 83,452 83,740 83,772 62 Commercial 67,618 73,023 83,816 83,816 85,790 88,495 89,424 90,628 63 Farm 19,431 19,395 19,291 19,291 19,224 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 Sept. Oct. Nov. Dec. Janr Feb. Seasonally adjusted 1 Total 664,049 718,863 735,102 729,152 730,317 730,147 729,420 729,473 729,274 2 Automobile 284,214 290,676 284,585 270,219 270,013 268,123 267,909 268,256 267,780 3 Revolving 174,104 199,082 220,110 232,070 233,661 234,666 234,504 234,816 236,001 4 Mobile home 25,348 22,471 20,919 18,892 18,943 19,059 19,116 18,649 18,292 5 Other 180,383 206,633 209,487 207,971 207,700 208,300 207,891 207,752 207,202 Not seasonally adjusted 6 Total 674,855 730,901 748,300 732,183 730,722 732,256 743,548 733,256 725,774 By major holder 7 Commercial banks 324,792 342,770 347,466 335,509 335,258 334,904 340,930 335,983 331,317 8 Finance companies 146,212 140,832 137,450 132,471 131,778 130,679 129,566 126,677 127,281 9 Credit unions 88,340 93,114 92,911 93,305 92,746 92,373 92,779 91,922 91,471 10 Retailers 48,438 44,154 43,552 37,281 37,359 38,651 43,130 40,580 39,108 11 Savings institutions 63,399 57,253 45,616 37,036 37,424 36,987 36,014 35,153 34,510 12 Gasoline companies 3,674 3,935 4,822 4,753 4,529 4,388 4,362 4,377 4,151 13 Pools of securitized assets n.a. 48,843 76,483 91,829 91,628 94,274 96,767 98,564 97,936 By major type of credit3 14 Automobile 284,328 290,705 284,813 273,354 272,092 268,927 268,284 266,888 265,183 15 Commercial banks 123,392 126,288 126,259 119,730 119,276 118,502 117,494 116,750 116,159 16 Finance companies 97,245 82,721 74,3% 69,853 69,364 67,907 66,549 65,151 65,412 17 Pools of securitized assets 0 18,235 24,537 26,808 26,803 26,237 27,997 29,431 28,482 18 Revolving 184,045 210,310 232,370 231,281 231,862 235,674 247,519 239,019 235,033 19 Commercial banks 123,020 130,811 132,433 125,524 126,234 125,734 132,625 126,736 123,905 20 Retailers 43,833 39,583 39,029 32,964 33,055 34,319 38,652 36,169 34,727 21 Gasoline companies 3,674 3,935 4,822 4,753 4,529 4,388 4,362 4,377 4,151 22 Pools of securitized assets n.a. 23,477 44,335 56,438 56,290 59,459 60,139 60,087 60,633 23 Mobile home 25,143 22,240 20,666 18,996 19,026 19,021 18,877 18,808 18,460 24 Commercial banks 9,025 9,112 9,763 9,614 9,600 9,656 9,552 9,638 9,409 25 Finance companies 7,191 4,716 5,252 5,300 5,358 5,401 5,520 5,509 5,509 26 Other 181,339 207,646 210,451 208,553 207,742 208,633 208,868 208,541 207,098 27 Commercial banks 69,355 76,559 79,011 80,641 80,148 81,012 81,259 82,859 81,844 28 Finance companies 41,776 53,395 57,801 57,318 57,056 57,371 57,497 56,017 56,360 29 Retailers 4,605 4,571 4,523 4,317 4,304 4,332 4,478 4,411 4,381 30 Pools of securitized assets2 n.a. 7,131 7,611 8,583 8,535 8,578 8,631 9,046 8,821 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 • June 1992 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1 Percent per year, except as noted 1991 1992 IItteemm 11998899 11999900 11999911 Aug. Sept. Oct. Nov. Dec. Jan. Feb. INTEREST RATES Commercial banks2 1 48-month new car3 12.07 11.78 11.14 11.06 n.a. n.a. 10.61 n.a. n.a. 9.89 2 24-month personal 15.44 15.46 15.18 15.24 n.a. n.a. 14.88 n.a. n.a. 14.39 3 120-month mobile home 14.11 14.02 13.70 13.73 n.a. n.a. 13.37 n.a. n.a. 12.93 4 Credit card 18.02 18.17 18.23 18.24 n.a. n.a. 18.19 n.a. n.a. 18.09 Auto finance companies 5 New car 12.62 12.54 1122..4411 12.40 12.38 12.23 10.79 10.41 10.04 1100..1199 6 Used car 16.18 15.99 15.60 15.63 15.60 15.46 15.06 14.90 14.34 14.00 OTHER TERMS4 Maturity (months) 7 New car 54.2 54.6 55.1 55.4 55.4 55.4 54.1 5533..77 5533..55 5533..88 8 Used car 46.6 46.1 47.2 47.2 47.2 47.0 47.0 46.9 48.4 48.0 Loan-to-value ratio 9 New car 91 87 88 88 87 88 88 88 89 89 10 Used car 97 95 % 97 % 97 % 93 97 97 Amount financed (dollars) 11 New car 12,001 12,071 1122,,449944 12,518 12,460 12,684 13,245 13,476 1133,,113355 1133,,334400 12 Used car 7,954 8,289 8,884 8,902 8,9% 9,077 9,029 9,105 9,007 8,912 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 1990 1991 IInnssttrruummeenntt oorr sseeccttoorr Q2 Q3 Q4 Qi Q2 Q3 Q4 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors .. 722.8 767.2 714.7 644.5 465.9 669.3 593.2 479.9 434.5 538.9 476.1 414.1 By lending sector and instrument 7 U.S. government 143.9 155.1 146.4 246.9 278.2 239.6 242.3 271.5 119999..22 226699..11 336655..55 227788..77 Treasury securities 142.4 137.7 144.7 238.7 291.9 234.2 243.6 272.5 223.2 275.3 394.3 274.9 4 Agency issues and mortgages 1.5 17.4 1.6 8.2 -13.8 5.4 -1.3 -1.0 -24.0 -6.2 -28.8 3.8 5 Private 578.9 612.1 568.4 397.6 187.7 429.7 350.9 208.5 235.2 269.7 110.6 135.4 By instrument Debt capital instruments 487.1 463.5 414.9 328.5 254.7 335.2 277.3 250.2 228899..33 332200..22 117799..88 222299..55 7 Tax-exempt 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 8 Corporate bonds 79.1 103.4 74.3 47.7 85.8 66.8 30.2 65.7 83.7 104.1 88.3 67.1 9 324.5 306.5 275.7 235.3 136.6 212.2 210.6 166.1 180.3 178.4 53.6 134.2 10 Home mortgages 234.9 231.0 218.0 215.2 139.2 218.4 187.6 158.3 140.5 161.5 115.0 139.8 11 Multifamily residential 24.4 16.7 16.4 3.6 3.2 -7.5 17.0 3.6 14.7 4.3 -14.1 88..11 1? Commercial 71.6 60.8 42.7 16.7 -5.5 2.5 4.8 4.0 25.0 14.9 -44.6 --1177..55 n -6.4 -2.1 -1.5 -.1 -.2 -1.2 1.3 .2 .2 -2.3 -2.6 3.8 14 Other debt instruments 91.8 148.6 153.5 69.2 -67.0 94.5 73.6 -41.7 -54.0 -50.5 -69.2 -94.1 IS Consumer credit 33.5 50.4 43.1 14.3 -16.5 14.2 13.4 -4.2 -21.2 -7.0 -26.3 -11.3 16 Bank loans n.e.c 9.9 40.5 39.9 1.5 -25.7 26.7 -6.9 -20.6 3.2 -36.1 -22.9 -47.0 17 Open market paper 1.6 11.9 21.4 9.7 -18.4 -.7 19.3 -34.4 -6.9 -16.1 -42.4 -8.1 18 Other 46.8 45.8 49.1 43.7 -6.4 54.4 47.7 17.6 -29.1 8.7 22.4 -27.6 By borrowing sector 19 State and local government 83.0 48.9 63.2 42.6 24.4 48.9 34.6 1122..44 2255..55 2288..00 2200..22 2233..88 ?0 302.2 315.8 287.3 257.8 160.3 274.5 223.8 165.5 169.7 186.9 108.3 176.1 ?1 Nonfinancial business 193.7 247.4 217.9 97.3 3.1 106.3 92.5 30.5 40.0 54.8 -17.9 -64.4 77 -10.6 -7.5 1.6 2.5 2.6 -5.5 8.7 1.1 4.7 1.6 .9 3.4 Nonfarm noncorporate 65.9 62.4 50.0 15.3 -21.6 14.1 11.2 4.8 5.8 6.6 -47.2 -51.7 24 Corporate 138.5 192.5 166.3 79.5 22.1 97.8 72.6 24.6 29.4 46.6 28.5 -16.0 75 Foreign net borrowing in United States 6.2 6.4 10.6 23.5 15.6 36.3 26.2 19.0 62.8 -59.6 22.7 36.4 ?6 7.4 6.9 5.3 21.6 16.4 20.7 1.9 28.6 11.5 14.7 16.5 22.9 77 Bank loans n.e.c -3.6 -1.8 -.1 -2.9 4.0 1.3 2.0 -5.2 8.1 -3.5 1.4 9.9 78 Open market paper 3.8 8.7 13.1 12.3 6.4 23.1 25.6 15.6 46.7 -51.9 16.0 14.9 29 U.S. government loans -1.4 -7.5 -7.7 -7.5 -11.2 -8.8 -3.3 -20.0 -3.5 -18.8 -11.1 -11.4 30 Total domestic plus foreign 729.0 773.6 725.3 668.0 481.4 705.6 619.4 498.9 497.2 479.3 498.8 450.5 Financial sectors 31 Total net borrowing by financial sectors 264.1 213.4 191.0 168.3 135.4 192.3 92.0 220.7 101.3 83.2 141.8 215.3 37 U.S. government-related 171.8 119.8 151.0 167.4 157.0 172.8 146.2 185.6 149.6 118.0 117722..99 118877..66 33 Sponsored-credit-agency securities 30.2 44.9 25.2 17.1 8.8 11.6 13.7 37.1 13.1 -29.7 20.6 31.1 34 Mortgage pool securities 142.3 74.9 125.8 150.3 148.2 161.2 132.5 148.9 136.5 147.6 152.3 156.3 35 Loans from U.S. government -.8 .0 .0 -.1 .0 .0 .0 -.5 .0 .0 .0 .2 36 92.4 93.7 40.0 .9 -21.6 19.5 -54.3 35.2 -48.3 -34.7 -31.1 27.7 37 Corporate bonds 44.2 18.2 17.7 15.6 44.5 82.7 -64.1 24.9 38.1 63.1 10.8 66.0 38 Mortgages .4 .3 .0 .3 -.1 .2 .1 .6 ..11 -.1 .9 -1.2 39 Bank loans n.e.c -3.6 .6 1.9 1.2 3.7 2.1 2.0 1.1 11..33 -2.9 9.6 6.7 40 Open market paper 26.9 54.8 31.3 8.6 -31.7 -38.6 35.1 24.2 -52.0 -46.3 -16.0 -12.3 41 Loans from Federal Home Loan Banks 24.4 19.7 -11.0 -24.7 -38.0 -26.9 -27.3 -15.7 -35.8 -48.5 -36.4 -31.5 By borrowing sector 47 Sponsored credit agencies 29.5 44.9 25.2 17.0 8.8 11.6 13.7 36.7 1133..11 --2299..77 2200..66 3311..33 43 142.3 74.9 125.8 150.3 148.2 161.2 132.5 148.9 136.5 147.6 152.3 156.3 44 92.4 93.7 40.0 .9 -21.6 19.5 -54.3 35.2 -48.3 -34.7 -31.1 27.7 45 Commercial banks 6.2 -3.0 -1.4 -1.1 -12.9 -9.9 -5.8 14.2 -17.9 -11.9 -8.5 -13.1 46 Bank affiliates 14.3 5.2 6.2 -27.7 -5.4 -29.5 -42.0 -30.8 -8.0 -3.3 -7.9 -2.4 47 Savings and loan associations 19.6 19.9 -14.1 -31.2 -39.6 -45.0 -30.9 -20.6 -43.2 -51.4 -37.7 -26.3 48 Mutual savings banks 8.1 1.9 -1.4 -.5 -2.7 4.1 -2.7 1.3 1.9 -.9 -3.3 -8.6 49 Finance companies 4.7 33.5 31.1 23.2 6.0 47.4 1.1 25.1 -9.4 -4.8 -6.8 45.0 50 Real estate investment trusts (REITs) .4 3.6 -1.9 -1.9 -.2 -2.7 -1.4 .3 -.6 -.1 4.0 -4.3 51 Securitized credit obligation (SCO) issuers 39.1 32.5 21.4 40.1 33.3 55.1 27.5 45.6 28.9 37.7 29.2 37.5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic NonfinancialS tatistics • June 1992 1.57—Continued 1990 1991 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998877 11998888 11998899 11999900 11999911 Q2 Q3 Q4 Q1 Q2 Q3 Q4 All sectors 52 Total net borrowing, all sectors 993.1 987.0 916.3 836.3 616.9 897.8 711.3 719.7 598.5 562.5 640.6 665.8 53 U.S. government securities 316.4 274.9 297.3 414.4 435.1 412.4 388.5 457.5 348.8 387.1 538.4 466.1 54 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 55 Corporate and foreign bonds 130.7 128.5 97.3 84.8 146.7 170.2 -32.0 119.2 133.2 182.0 115.5 156.1 56 Mortgages 324.9 306.7 275.7 235.6 136.5 212.3 210.7 166.8 180.4 178.3 54.5 133.0 57 Consumer credit 33.5 50.4 43.1 14.3 -16.5 14.2 13.4 -4.2 -21.2 -7.0 -26.3 -11.3 58 Bank loans n.e.c 2.7 39.3 41.6 -.2 -18.1 30.1 -2.8 -24.7 12.6 -42.5 -11.9 -30.4 59 Open market paper 32.3 75.4 65.9 30.7 -43.6 -16.3 79.9 5.4 -12.2 -114.3 -42.5 -5.5 60 Other loans 69.1 58.1 30.4 11.4 -55.6 18.6 17.1 -18.6 -68.4 -58.7 -25.1 -70.3 61 MEMO: U.S. government, cash balance -7.9 10.4 -5.9 8.3 14.7 -17.6 18.4 24.2 34.6 -35.8 -14.6 74.4 Totals net of changes in U.S. government cash balances 62 Net borrowing by domestic nonfinancial sectors 730.7 756.8 720.6 636.2 451.2 686.9 574.7 455.7 339999..99 574.7 449900..88 339.7 63 Net borrowing by U.S. government 151.8 144.7 152.3 238.6 263.5 257.2 223.8 247.3 164.6 304.9 380.2 204.2 External corporate equity funds raised in United States 64 Total net share issues 7.1 -119.3 -65.4 15.8 208.6 56.4 -19.5 27.0 116.1 179.8 237.5 300.9 65 Mutual funds 70.2 6.1 38.5 65.7 150.6 77.1 45.9 83.7 97.6 125.2 178.1 201.3 66 All other -63.1 -125.4 -103.9 -50.0 58.0 -20.7 -65.4 -56.7 18.5 54.6 59.4 99.6 67 Nonfinancial corporations -75.5 -129.5 -124.2 -63.0 17.5 -48.0 -74.0 -61.0 -12.0 11.0 17.0 54.0 68 Financial corporations 14.5 3.2 3.0 6.1 6.4 3.3 6.5 2.8 4.3 7.0 7.0 7.2 69 Foreign shares purchased in United States -2.1 .9 17.3 6.9 34.2 23.9 2.2 1.6 26.2 36.6 35.3 38.4 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 1991 Transaction category or sector Q2 Q3 Q4r Qlr Q2r Q31 1 Total funds advanced in credit markets to domestic nonfinancial sectors 714.7 644.5R 593.2R 479.9 2 Total net advances by federal agencies and foreign sectors 248.0 188.1 261.7 246.8 347.4 190.8 282.9 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 4 Residential mortgages 139.1 86.3 137.9 184.1 173.7 185.2 176.3 180.5 176.0 186.6 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 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 By lender 7 U.S. government -7.9 -9.4 -2.6 33.6 9.8 36.1 63.6 -3.7 28.1 28.8 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 9 Monetary authority 24.7 10.5 -7.3 8.1 31.1 30.8 26.2 -24.2 60.2 10 Foreign 61.8 95.0 72.7 53.2 45.8 59.6 75.1 76.8 30.6 Agency and foreign borrowing not included in line I 11 Sponsored credit agencies and mortgage pools 171.8 119.8 151.0 167.4 157.0 172.8 146.2 185.6 149.6 118.0 12 Foreign 6.2 6.4 10.6 23.5 15.6 36.3 26.2 19.0 62.8 -59.6 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 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 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 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 17 Residential mortgages 120.2 161.3 96.5 34.6r -31.3 25.7 28.2r -18.6 -20.9 -20.8 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 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 20 Total credit market funds advanced by private financial institutions 497.3 538.5 534.0 388.7R 348.4 282.4 299.41 519.5 307.4 By lending institution 21 Commercial banks 135.3 157.0 177.0 121.2 92.7 140.9 107.6 61.8 123.3 30.1 22 Savings institutions 136.8 118.0 -90.9 -153.4 -157.3 -211.9 -160.8 -170.8 -173.6 -153.2 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 24 Other financial institutions 76.2 87.1 249.9 237.2r 197.6 111.7 216.9r 440.2 148.4 119.2 By source of funds 2 2 5 6 C Pr r i e v d a i t t e m d a o r m ke e t s t b ic o r d ro ep w o i s n i g ts and repurchase agreements . 1 9 7 2 3 . . 4 8 2 9 2 3 9 . . 7 6 2 4 0 0 9 . . 0 5 53. y 3 -21 1 . . 6 0 - 1 5 9 . . 7 5 -5 4 4 5 . . 3 5 r -2 3 2 5 . . 8 2 - 2 4 1 8 4 . . 3 6 - - 1 3 1 4 8 . . 7 1 27 Other sources 231.1 215.3 284.5 334.5r 369.0 268.6 308.2r 507.1 141.1 367.2 28 Foreign funds 43.7 9.3 -9.9 24.0 -20.7 23.5 87.5 -28.5 9.4 -99.3 2 3 9 0 T In r s e u a r s a u n ry ce b a a n la d n p ce e s n sion reserves - 9 5 4 . . 8 9 17 7 4 . . 3 1 1 - 9 3 2 . . 4 0 16 5 4 . . 3 1 23 5 5 . . 7 5 2 - 0 1 9 . . 0 1 1 1 2 3 8 . . 7 3 222 3 . .4 1 2 2 9 0 1 . . 6 6 - 1 2 7 2 8 . . 3 7 31 Other.net 98.4 24.5 105.8 141.0r 148.5 36.9 78.7r 310.1 -180.6 310.1 Private domestic nonfinancial investors 32 Direct lending in credit markets 247.9r 240.5 194.2 185.9r 21.7 325.4 64.6r 9.4 8.2 134.5 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 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 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 3 3 6 7 O O p th 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 1 1 3 . . 5 3 4 39 1 . . 0 9 2 2 9 . . 9 6 4 1 2 8 . . 3 8 r -3 2 6 1 . . 6 9 5 35 3 . . 7 0 2 1 9 2 . . 8 8 r - 4 9 1 . . 6 0 -4 1 6 8 . . 6 1 -8 1 5 6 . . 7 7 38 Deposits and currency 190.3 233.1 225.7 83.0 28.1 24.7 74.2 20.4 231.2 -94.7 39 Currency 19.0 14.7 11.7 22.6 19.7 22.6 30.9 16.9 38.7 6.0 4 4 0 1 C Sm he a c ll k a ti b m le e d a e n p d o s s a it v s i ngs accounts 7 - 6 .3 .0 12 1 2 2 . . 4 5 98. . 2 6 59. . 4 4 5 1 2 9 . . 0 5 1 4 9 . . 5 9 r r - 4 4 0 . . 1 8 r r -2 6 3 1 . . 5 6 1 5 0 6 4 . . 3 8 14 1. . 0 2 42 Money market fund shares 28.9 21.2 86.7 56.0 34.5 -32.7 106.0 42.1 171.0 -63.5 43 Large time deposits 47.6 40.6 9.1 -42.1 -91.2 -15.5 -70.7 -66.4 -60.8 -72.8 44 Security repurchase agreements 21.6 32.9 14.9 -20.5 -13.8 18.2 -26.5 -36.6 -56.7 3.0 45 Deposits in foreign countries -2.5 -11.2 4.4 7.r 7.5 7.8 -2.2 26.3 -22.2 17.5 46 Total of credit market instruments, deposits, and currency 438.2 419.9 138.7R 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 38.2 56.9 44.6 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 49 Total foreign funds 105.5 104.3 62.8 77.2 25.1 83.1 162.6 48.3 40.0 -40.2 Corporate equities not included above 50 Total net issues 7.1 -119.3 -65.4 15.8 208.6 56.4 -19.5R 27.0 116.1 179.8 51 Mutual fund shares 70.2 6.1 38.5 65.7 150.6 77.1 45.9 83.7 97.6 125.2 52 Other equities -63.1 -125.4 -103.9 -50.0 58.0 -20.7 -65.4r -56.7 18.5 54.6 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 54 Other net purchases -15.1 -123.3 -84.3 -11.7r 132.1 -8.3r 24.9r -26.2 35.2 122.7 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 claims on foreign affiliates and deposits by banking institutions in foreign banks. ordering address, see inside front cover. Digitized for FR2A9S. EDeRm and deposits and note balances at commercial banks. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Financial Statistics • June 1992 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING Billions of dollars, end of period 1990 1991 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr Q2 Q3 Q4 Q1 Q2 Q3 Q4 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 9,242.3 9,987.1 10,760.5 11,229.1 10,445.0 10,597.7 10,760.5 10,833.4 10,958.3 11,084.3 11,229.1 By lending sector and instrument 2 U.S. government 2,104.9 2,251.2 2,498.1 2,776.3 2,347.4 2,410.4 2,498.1 2,548.8 2,591.9 2,687.2 2,776.3 3 Treasury securities 2,082.3 2,227.0 2,465.8 2,757.7 2,314.4 2,377.8 2,465.8 2,522.4 2,567.1 2,669.6 2,757.7 4 Agency issues and mortgages 22.6 24.2 32.4 18.6 32.9 32.6 32.4 26.4 24.8 17.6 18.6 5 Private 7,137.4 7,735.9 8,262.4 8,452.8 8,097.6 8,187.3 8,262.4 8,284.6 8,366.4 8,397.0 8,452.8 By instrument 6 Debt capital instruments 5,035.8 5,467.9 5,932.3 6,187.0 5,793.2 5,868.4 5,932.3 5,991.7 6,077.6 6,128.7 6,187.0 7 Tax-exempt obligations 939.4 1,004.4 1,049.8 1,082.1 1,031.4 1,043.0 1,049.8 1,052.8 1,060.7 1,072.9 1,082.1 8 Corporate bonds 852.6 926.9 974.5 1,060.3 950.6 958.1 974.5 995.5 1,021.5 1,043.6 1,060.3 9 Mortgages 3,243.8 3,536.6 3,908.0 4,044.6 3,811.2 3,867.3 3,908.0 3,943.5 3,995.4 4,012.2 4,044.6 10 Home mortgages 2,173.9 2,404.3 2,765.1 2,904.3 2,675.7 2,726.0 2,765.1 2,790.7 2,838.0 2,870.1 2,904.3 11 Multifamily residential 286.7 304.4 305.7 308.9 300.5 304.8 305.7 309.3 310.4 306.9 308.9 12 Commercial 696.4 742.6 753.3 747.7 751.1 752.3 753.3 759.5 763.2 752.1 747.7 13 Farm 86.8 85.3 84.0 83.7 84.0 84.3 84.0 83.9 83.8 83.1 83.7 14 Other debt instruments 2,101.6 2,268.0 2,330.0 2,265.8 2,304.4 2,318.9 2,330.0 2,292.9 2,288.8 2,268.4 2,265.8 15 Consumer credit 743.6 794.7 808.9 792.5 789.4 798.7 808.9 782.3 784.2 783.7 792.5 16 Bank loans n.e.c 710.0 759.8 754.1 731.2 753.3 750.5 754.1 748.5 740.9 734.8 731.2 17 Open market paper 85.7 107.1 116.9 98.5 128.7 131.8 116.9 120.8 119.4 107.0 98.5 18 Other 562.3 606.4 650.1 643.7 633.1 637.9 650.1 641.3 644.3 642.8 643.7 By borrowing sector 19 State and local government 752.5 815.7 858.3 882.6 841.8 852.9 858.3 861.3 866.7 874.6 882.6 20 Household 3,188.9 3,501.5 3,897.7 4,060.7 3,777.2 3,841.9 3,897.7 3,914.9 3,966.3 4,002.6 4,060.7 21 Nonfinancial business 3,196.0 3,418.7 3,506.3 3,509.5 3,478.6 3,492.5 3,506.3 3,508.4 3,533.4 3,519.8 3,509.5 22 Farm 137.6 139.2 140.5 143.1 138.7 141.6 140.5 139.5 142.6 143.6 143.1 23 Nonfarm noncorporate 1,130.5 1,180.5 1,194.3 1,172.7 1,195.4 1,195.1 1,194.3 1,195.4 1,197.4 1,181.9 1,172.7 24 Corporate 1,927.9 2,098.9 2,171.5 2,193.7 2,144.6 2,155.8 2,171.5 2,173.5 2,193.4 2,194.3 2,193.7 25 Foreign credit market debt held in United States 255.7 265.4 288.9 304.4 277.0 283.4 288.9 301.4 288.8 294.5 304.4 26 Bonds 94.0 98.5 120.1 136.5 112.4 112.9 120.1 122.9 126.6 130.7 136.5 27 Bank loans n.e.c 21.5 21.4 18.5 22.5 19.3 19.8 18.5 20.5 19.7 20.0 22.5 28 Open market paper 49.9 63.0 75.3 81.8 65.1 71.5 75.3 87.0 74.0 78.0 81.8 29 U.S. government loans 90.2 82.5 75.0 63.7 80.2 79.3 75.0 70.9 68.4 65.7 63.7 30 Total credit market debt owed by nonfinancial sectors, domestic and foreign 9,498.0 10,252.5 11,049.4 11,533.5 10,721.9 10,881.2 11,049.4 11,134.8 11,247.0 11,378.8 11,533.5 Financial sectors 31 Total credit market debt owed by financial sectors 1,999.8 2,219.4 2,512.0 2,648.2 2,425.3 2,447.7 2,512.0 2,530.5 2,550.7 2,585.3 2,648.2 By instrument 32 U.S. government-related 1,098.4 1,249.3 1,418.4 1,575.4 1,330.1 1,367.9 1,418.4 1,452.1 1,480.3 1,524.3 1,575.4 33 Sponsored credit-agency securities 348.1 373.3 393.7 402.5 381.0 384.4 393.7 397.0 389.6 394.7 402.5 34 Mortgage pool securities 745.3 871.0 1,019.9 1,168.1 944.2 978.5 1,019.9 1,050.3 1,085.9 1,124.8 1,168.1 35 Loans from U.S. government 5.0 5.0 4.9 4.9 5.0 5.0 4.9 4.9 4.9 4.9 4.9 36 Private 901.4 970.0 1,093.5 1,072.7 1,095.1 1,079.8 1,093.5 1,078.4 1,070.3 1,061.0 1,072.7 37 Corporate bonds 331.9 378.2 515.9 561.2 528.0 511.6 515.9 529.7 544.2 546.7 561.2 38 Mortgages 3.4 3.4 4.2 4.1 4.0 4.1 4.2 4.2 4.2 4.4 4.1 39 Bank loans n.e.c 35.6 37.5 38.6 42.3 36.5 36.7 38.6 36.5 37.0 39.0 42.3 40 Open market paper 377.7 409.1 417.7 386.0 400.3 409.6 417.7 400.9 390.1 387.0 386.0 41 Loans from Federal Home Loan Banks 152.8 141.8 117.1 79.1 126.3 117.9 117.1 107.0 94.7 83.9 79.1 By borrowing sector 42 Sponsored credit agencies 353.1 378.3 398.5 407.4 385.9 389.4 398.5 401.8 394.4 399.5 407.4 43 Mortgage pools 745.3 871.0 1,019.9 1,168.1 944.2 978.5 1,019.9 1,050.3 1,085.9 1,124.8 1,168.1 44 Private financial sectors 901.4 970.0 1,093.5 1,072.7 1,095.1 1,079.8 1,093.5 1,078.4 1,070.3 1,061.0 1,072.7 45 Commercial banks 78.8 77.4 76.3 63.4 71.6 70.7 76.3 68.1 65.9 64.6 63.4 46 Bank affiliates 136.2 142.5 114.8 109.4 134.3 122.9 114.8 114.4 113.3 110.5 109.4 47 Savings and loan associations 159.3 145.2 114.0 74.4 125.6 116.2 114.0 102.8 89.4 78.2 74.4 48 Mutual savings banks 18.6 17.2 16.7 14.0 16.7 16.2 16.7 16.4 16.6 15.9 14.0 49 Finance companies 361.4 392.5 536.0 542.0 529.5 529.8 536.0 533.7 532.5 530.8 542.0 50 Real estate investment trusts (REITs) 11.4 10.1 10.6 11.1 10.4 10.3 10.6 10.6 10.8 12.0 11.1 51 Securitized credit obligation (SCO) issuers... 135.7 185.1 225.2 258.5 206.9 213.8 225.2 232.4 241.8 249.1 258.5 All sectors 52 Total credit market debt, domestic and foreign.. 11,497.8 12,471.9 13,561.3 14,181.7 13,147.2 13,328.9 13,561.3 13,665.3 13,797.7 13,964.1 14,181.7 53 U.S. government securities 3,198.3 3,495.6 3,911.7 4,346.8 3,672.5 3,773.4 3,911.7 3,996.1 4,067.4 4,206.7 4,346.8 54 State and local obligations 939.4 1,004.4 1,049.8 1,082.1 1,031.4 1,043.0 1,049.8 1,052.8 1,060.7 1,072.9 1,082.1 55 Corporate and foreign bonds 1,278.5 1,403.6 1,610.5 1,758.0 1,591.0 1,582.6 1,610.5 1,648.1 1,692.3 1,720.9 1,758.0 56 Mortgages 3,247.2 3,540.1 3,912.2 4,048.8 3,815.3 3,871.4 3,912.2 3,947.7 3,999.6 4,016.6 4,048.8 57 Consumer credit 743.6 794.7 808.9 792.5 789.4 798.7 808.9 782.3 784.2 783.7 792.5 58 Bank loans n.e.c 767.2 818.6 811.3 795.9 809.1 807.0 811.3 805.6 797.6 793.8 795.9 59 Open market paper 513.4 579.2 609.9 566.3 594.0 612.9 609.9 608.8 583.6 572.0 566.3 60 Other loans 810.2 835.7 847.0 791.4 844.6 840.0 847.0 824.0 812.4 797.3 791.4 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 11999900 11999911 Q2 Q3 Q4 Ql Q2 Q3 Q4 1 Total funds advanced in credit markets to domestic nonfinancial sectors 9,242.3 9,987.1 10,760.5 11,229.1 10,445.0 10,597.7 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 651.5 688.9 763.3 862.6 714.1 745.6 763.3 789.5 808.7 835.9 862.6 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 214.6 207.0 240.6 250.3 227.4 242.7 240.6 248.2 256.6 257.1 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 1,480.3 1,524.3 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 9,088.7 9,794.4 10,188.8 9,522.1 9,637.7 9,794.4 9,857.9 9,938.1 10,047.2 10,188.8 14 U.S. government securities 2,546.8 2,806.7 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 1,004.4 1,049.8 1,082.1 1,031.4 1,043.0 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 1,859.0 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 2,975.4 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 7,990.0 8,132.4 8,200.4 8,261.9 8,355.5 8,480.4 By holding institution 71 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 2,793.1 2,815.2 22,,886600..55 ??, 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 73 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 1,691.3 1,804.2 1,844.1 1,875.6 1,944.8 2,001.8 By source of funds 75 Private 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 3,836.0 3,812.1 3,844.6 76 Credit market debt 901.4 970.0 1,093.5 1,072.7 1,095.1 1,079.8 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 3,098.0 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 1,174.7 951.3 956.2 1,010.4 1,010.7 1,089.6 1,141.5 1,174.7 Private domestic nonfinancial investors 37 Credit market claims 2,219.3 2,455.9 2,755.5 2,781.1 2,685.7 2,727.6 2,755.5 2,736.0 2,746.5 2,752.7 2,781.1 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 486.7 549.4 574.2 583.9 568.9 573.8 574.2 568.2 576.8 584.0 583.9 35 Corporate and foreign bonds 52.4 64.7 194.8 177.7 217.8 201.3 194.8 198.1 201.7 185.1 177.7 36 Open market paper 243.0 245.9 264.7 228.1 264.5 266.4 264.7 250.1 232.1 230.5 228.1 37 Other loans and mortgages 386.5 427.0 443.8 465.7 420.0 429.2 443.8 441.8 445.5 454.5 465.7 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 2,286.6 2,295.8 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 390.3 399.3 358.3 267.1 387.1 374.1 358.3 342.9 319.7 297.8 267.1 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 6,495.6 6,878.3 6,931.9 6,752.3 6,803.7 6,878.3 6,885.5 6,870.9 6,858.3 66,,993311..99 MEMO 47 Public holdings as percent of total 23.4 23.5 24.2 25.3 23.6 24.0 24.2 24.5 24.8 25.1 2255..33 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 4,400.7 3,824.0 4,084.6 4,635.1 4,669.3 4,937.0 55,,221199..55 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 5? Other equities 3,141.6 3,819.7 3,506.2 4,367.2 3,812.8 3,276.8 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 1,459.6 1,232.6 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 2,941.1 2,591.4 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 29. Demand deposits and note balances at commercial banks. ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • June 1992 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures Monthly data seasonally adjusted, 1987=100, except as noted 1991 1992 MMeeaassuurree 11998899 11999900 11999911 July Aug. Sept. Oct. Nov. Dec. Jan.r Feb.r Mar. 1 Industrial production1 108.1 109.2 107.1 108.1 108.0 108.4 108.4 108.1 107.4 106.4 106.9 107.2 Market groupings 2 Products, total 108.6 110.1 108.1 108.7 108.5 108.9 109.0 109.0 108.4r 107.4 107.9 108.3 3 Final, total 109.1 110.9 109.6 110.2 109.8 110.4 110.6 110.6 109.9r 108.6 109.3 109.6 4 Consumer goods 106.7 107.3 107.5 108.3 108.4 109.4 109.7 110.0 109.T 108.0 108.5 109.0 5 Equipment 112.3 115.5 112.2 112.8 111.6 111.8 111.9 111.4 110.9r 109.5 110.4 110.5 6 Intermediate 106.8 107.7 103.4r 104.0 104.4 104.3 104.1 103.9 103.8r 103.4 103.6 103.9 7 Materials 107.4 107.8 105.5 107.0 107.2 107.5 107.4 106.6 105.8r 104.9 105.2 105.4 Industry groupings 8 Manufacturing 108.9 109.9 107.4 108.3 108.4 108.9 109.0 108.6 108.1 107.2 107.8 110077..99 9 Capacity utilization, manufacturing (percent) 83.9 82.3 78.2 78.7 78.6 78.8 78.7 78.2 77.7 76.9 77.1 77.0 10 Construction contracts (1982= 100)3 172.9 156.2 132.5r 144.0 150.0 143.0 157.0 134.0 152.0 95.0 100.0 n.a. 11 Nonagricultural employment, total4 106.0 107.6 106.6 106.5 106.6 106.7 106.7 106.5 106.5 106.4 106.5 106.5 12 Goods-producing, total 102.5 101.0 96.4 96.3 96.4 96.3 96.0 95.5 95.3 95.1 95.1 95.1 13 Manufacturing, total 102.2 100.5 96.9 96.7 96.9 96.8 96.6 96.4 96.2 95.9 95.9 95.9 14 Manufacturing, production worker.... 102.3 100.0 96.0 96.0 96.3 96.0 95.9 95.6 95.4 95.1 95.3 95.4 15 Service-producing 107.1 109.7 109.9 109.8 109.9 110.0 110.1 110.0 110.1 110.0 110.2 110.2 16 Personal income, total 115.2 123.1 127.2 127.1 127.7 128.2 128.4r 128.3r 129.6r 129.4 130.8 n.a. 17 Wages and salary disbursements 114.4 121.1 124.2 124.2 124.9 125.4 125.2 125.4 126.2 125.4 127.0 n.a. 18 Manufacturing 110.6 113.4 113.5 113.8 114.4 114.6 115.6 114.5 115.4r 113.5 114.4 n.a. 19 Disposable personal income 115.2 123.4 128.2r 128.3 128.9 129.3 129.7 129.5r 130.9r 130.7 132.1 n.a. 20 Retail sales6 113.2 117.4 118.3 119.4 118.6 119.0 118.9 118.9 118.8 121.3 122.9 122.5 Prices7 21 Consumer (1982-84= 100) 124.0 130.7 136.2 136.2 136.6 137.2 137.4 137.8 137.9 138.1 138.6 139.3 22 Producer finished goods (1982=100) 113.6 119.2 121.7 121.6 121.7 121.4 122.2 122.3 121.9 121.7 121.9 122.0 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 1. 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 Aug. Sept. Oct. Nov. Dec. Jan. Feb." Mar. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 188,601 190,216 191,883 192,095 192,240 192,386 192,522 192,661 192,796 192,906 193,036 2 Labor force (including Armed Forces)1 126,077 126,954 127.421 127,126 127,708 127,605 127,444 127,675 128,083 128,309 128,604 3 Civilian labor force 123,869 124,787 125,303 125,004 125,590 125,508 125,374 125,619 126,046 126,287 126,590 Employment 4 Nonagricultural industries2 114,142 114,728 114,644 113,230 113,806 113,663 113,500 113,545 113,951 113,811 114,155 5 Agriculture 3,199 3,186 3,233 3,254 3,283 3,204 3,272 3,183 3,166 3,232 3,194 Unemployment 6 Number 6,528 6,874 8,426 8,520 8,501 8,641 8,602 8,891 8,929 9,244 9,242 7 Rate (percent of civilian labor force) 5.3 5.5 6.7 6.8 6.8 6.9 6.9 7.1 7.1 7.3 7.3 8 Not in labor force 62,524 63,262 64,462 64,969 64,532 64,781 65,078 64,986 64,713 64,597 64,432 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 108,329 109,971 108,975 108,971 109,066 109,073 108,843 108,882 108,760r 108,867 108,886 10 Manufacturing 19,442 19,111 18,427 18,442 18,414 18,377 18,337 18,293 18,238r 18,252 18,249 11 Mining 693 711 697 693 684 679 674 670 666 664 659 12 Contract construction 5,187 5,136 4,696 4,691 4,699 4,671 4,584 4,589 4,602r 4,574 4,584 13 Transportation and public utilities 5,644 5,826 5,823 5,820 5,829 5,828 5,816 5,811 5,794r 5,800 5,797 14 Trade 25,770 25,843 25,412 25,393 25,387 25,335 25,261 25,247 25,175r 25,288 25,255 15 Finance 6,695 6,739 6,707 6,687 6,692 6,697 6,694 6,701 6,693r 6,702 6,706 16 Service 27,120 28,240 28,778 28,831 28,937 29,019 29,008 29,057 29,073r 29,076 29,086 17 Government 17,779 18,322 18,434 18,414 18,424 18,467 18,469 18,514 18,519" 18,511 18,550 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 • June 1992 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1991 1992 1991 1992 Series Q2 Q3 Q4r Ql Q2 Q3 Q4 Ql Q2 Q3 Q4r Ql Output (1987=100) Capacity (percent of 1987 output) Capacity utilization rate (percent) 1 Total industry 106.4 108.1 107.9 106.8 134.5 135.3 136.2 137.0 79.1 79.9 79.3 78.0 2 Manufacturing 106.7 108.5 108.6 107.6 136.9 137.9 138.9 139.7 77.9 78.7 78.2 77.0 3 Primary processing 100.8 104.1 104.1 103.1 127.5 128.1 128.8 129.3 79.1 81.2 80.8 79.7 4 Advanced processing 109.4 110.6 110.7 109.7 141.3 142.4 143.5 144.6 77.4 77.7 77.1 75.9 5 Durable goods 106.7 108.1 107.7 106.4 140.9 141.8 142.8 143.7 75.7 76.2 75.4 74.1 6 Lumber and products 94.0 95.1 95.1 97.6 125.2 125.4 125.7 125.9 75.1 75.8 75.7 77.6 7 Primary metals 95.9 102.0 102.5 100.6 128.6 129.0 129.3 129.1 74.6 79.1 79.2 77.9 8 Iron and steel 92.8 100.3 103.2 101.8 133.5 134.0 134.5 134.1 69.5 74.8 76.7 75.9 9 Nonferrous 100.3 104.5 101.4 98.9 121.5 121.7 121.9 122.1 82.6 85.8 83.2 81.0 10 Nonelectrical machinery 123.5 123.5 122.7 121.9 159.5 161.2 162.8 164.3 77.4 76.6 75.4 74.2 11 Electrical machinery 110.6 111.2 110.4 110.6 144.0 145.3 146.6 147.9 76.8 76.5 75.3 74.8 12 Motor vehicles and parts 89.5 95.9 97.0 91.7 134.2 134.9 135.6 136.2 66.7 71.1 71.5 67.3 13 Aerospace and miscellaneous transportation equipment 106.4 105.2 102.8 100.1 137.9 138.7 139.6 140.4 77.2 75.9 73.7 71.3 14 Nondurable goods 106.7 109.1 109.7 109.1 131.9 132.9 133.8 134.8 80.9 82.1 82.0 81.0 15 Textile mill products 99.4 104.1 104.1 102.8 117.7 118.0 118.3 118.8 84.5 88.2 88.0 86.6 16 Paper and products 102.7 107.6 107.4 104.7 117.1 117.9 118.7 119.3 87.7 91.2 90.5 87.8 17 Chemicals and products 109.3 112.1 113.0 112.9 139.7 141.0 142.3 143.4 78.2 79.5 79.4 78.7 18 Plastics materials 115.6 125.4 126.2 122.6 139.2 142.6 146.1 148.7 83.0 87.9 86.4 82.4 19 Petroleum products 107.6 108.1 107.1 106.9 121.4 121.4 121.4 121.4 88.6 89.0 88.2 88.0 20 Mining 101.1 101.8 99.7 97.9 114.3 114.6 114.7 114.7 88.4 88.9 87.0 85.3 21 Utilities 109.6 110.4 109.4 107.4 128.4 128.8 129.2 129.5 85.3 85.7 84.7 82.9 22 Electric 114.4 115.2 111.6 109.9 124.3 124.7 125.2 125.6 92.1 92.4 89.1 87.5 Previous cycle Latest cycle 1992 High Low High Low Mar. Aug. Sept. Oct. Nov Dec.r Jan.r Feb/ Mar.p Capacity utilization rate (percent) 1 Total industry 89.2 72.6 87.3 71.8 78.4 79.8 79.9 79.8 79.3 78.7 77.8 78.0 78.1 2 Manufacturing 88.9 70.8 87.3 70.0 77.2 78.6 78.8 78.7 78.2 77.7 76.9 77.1 77.0 3 Primary processing 92.2 68.9 89.7 66.8 77.9 81.2 81.3 81.4 80.8 80.2 79.7 79.8 79.7 4 Advanced processing 87.5 72.0 86.3 71.4 76.8 77.5 77.7 77.6 77.1 76.6 75.7 76.0 75.9 5 Durable goods 88.8 68.5 86.9 65.0 74.9 76.0 76.2 75.9 75.5 74.8 73.8 74.3 74.2 6 Lumber and products 90.1 62.2 87.6 60.9 72.9 76.0 75.8 74.6 76.7 75.7 77.2 77.7 77.7 7 Primary metals 100.6 66.2 102.4 46.8 73.8 79.6 79.3 79.4 80.0 78.3 78.8 77.5 77.6 8 Iron and steel 105.8 66.6 110.4 38.3 69.1 75.0 75.1 76.2 78.5 75.5 77.3 75.1 75.5 9 Nonferrous 92.9 61.3 90.5 62.2 81.1 86.7 85.7 84.5 82.5 82.6 81.0 81.2 80.7 10 Nonelectrical machinery 96.4 74.5 92.1 64.9 77.7 76.5 76.1 76.1 75.4 74.7 74.1 74.1 74.4 11 Electrical machinery 87.8 63.8 89.4 71.1 75.9 76.8 76.2 75.1 75.5 75.2 74.8 74.9 74.6 12 Motor vehicles and parts .... 93.4 51.1 93.0 44.5 59.7 67.9 73.6 74.2 70.7 69.6 64.0 68.8 69.0 13 Aerospace and miscellaneous transportation equipment. 77.0 66.6 81.1 66.9 79.3 76.1 75.3 74.8 73.9 72.3 71.1 71.4 71.4 14 Nondurable goods 87.9 71.8 87.0 76.9 80.3 82.1 82.3 82.4 81.9 81.6 81.1 80.9 80.9 15 Textile mill products 92.0 60.4 91.7 73.8 81.3 88.8 87.4 89.2 88.2 86.5 86.1 86.7 86.9 16 Paper and products 96.9 69.0 94.2 82.0 86.8 90.4 91.4 92.1 89.4 90.0 87.6 87.6 88.1 17 Chemicals and products 87.9 69.9 85.1 70.1 77.9 79.7 79.6 80.0 79.4 78.9 78.5 78.9 78.8 18 Plastics materials 102.0 50.6 90.9 63.4 79.0 87.1 87.0 89.5 87.2 82.5 83.1 82.2 82.0 19 Petroleum products 96.7 81.1 89.5 68.2 89.4 88.4 89.4 87.3 87.9 89.5 87.5 88.0 88.4 20 Mining 94.4 88.4 96.6 80.6 89.0 88.5 88.5 87.9 86.8 86.2 85.0 85.6 85.4 21 Utilities 95.6 82.5 88.3 76.2 83.0 85.9 85.1 84.8 85.9 83.4 82.6 82.3 84.0 22 Electric 99.0 82.7 88.3 78.7 88.6 92.7 90.8 89.7 90.0 87.7 87.1 86.9 88.6 1. Data in this table also appear in the Board's G.17 (419) monthly statistical 2. Monthly high, 1973; monthly low, 1975. release. For ordering address, see inside front cover. For a detailed description of 3. Monthly highs, 1978 through 1980; monthly lows, 1982. the series, see "Recent Developments in Industrial Capacity and Utilization," Federal Reserve Bulletin, vol. 76 (June 1990), pp. 411-35. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A47 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 1987 1991 1992 1991 GGrroouupp por- aavvgg.. tion Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.r Jan.r FFeebb..rr Mar.P Index (1987 = 100) MAJOR MARKETS 1 Total index 100.0 107.1 105.0 105.5 106.4 107.3 108.1 108.0 108.4 108.4 108.1 107.4 106.4 106.9 107.2 7 60.8 108.1 106.5 106.9 107.7 108.6 108.7 108.5 108.9 109.0 109.0 108.4 107.4 107.9 108.3 3 Final products 46.0 109.6 108.1 108.7 109.3 110.1 110.2 109.8 110.4 110.6 110.6 109.9 108.6 109.3 109.6 4 Consumer goods, total 26.0 107.5 104.7 105.5 106.6 108.0 108.3 108.4 109.4 109.7 110.0 109.1 108.0 108.5 109.0 Durable consumer goods 5.6 102.3 95.9 99.3 101.1 104.2 105.5 104.0 107.7 107.5 106.0 104.6 101.4 104.6 105.1 6 Automotive products 2.5 97.8 88.9 94.2 97.4 100.4 102.3 98.6 106.5 106.7 103.6 101.3 94.0 100.8 101.9 7 Autos and trucks 1.5 90.2 76.7 85.0 89.2 92.5 98.1 90.2 103.0 105.1 99.0 96.7 84.3 94.3 95.7 8 Autos, consumer .9 84.6 76.3 78.3 81.9 83.8 92.8 83.0 94.6 92.6 89.8 88.2 79.1 84.8 81.9 9 Trucks, consumer .6 99.6 77.4 96.3 101.6 107.1 106.9 102.2 117.1 126.1 114.5 111.0 93.0 110.2 118.9 10 Auto parts and allied goods... 1.0 109.3 107.3 108.0 109.5 112.2 108.6 111.3 111.8 109.1 110.5 108.2 108.5 110.5 111.2 11 Other 3.1 105.8 101.4 103.4 104.1 107.3 108.1 108.3 108.7 108.1 108.0 107.2 107.4 107.6 107.6 1? Appliances, A/C, and TV .8 99.5 96.2 97.3 96.8 104.8 100.6 99.6 104.1 102.1 102.3 98.9 101.8 103.0 104.0 N Carpeting and furniture .9 99.4 93.9 97.0 96.9 99.2 103.1 103.9 101.8 101.8 101.6 101.5 101.1 101.4 102.4 14 Miscellaneous home goods ... 1.4 113.4 109.2 110.8 112.8 113.8 115.5 115.9 115.6 115.6 115.2 115.5 114.5 114.1 112.9 15 Nondurable consumer goods 20.4 109.0 107.1 107.2 108.1 109.0 109.0 109.6 109.8 110.3 111.1 110.3 109.8 109.6 110.1 16 Foods and tobacco 9.1 106.7 105.4 105.3 106.2 106.9 106.9 107.1 107.8 107.8 108.1 107.0 107.0 107.2 107.0 17 Clothing 2.6 93.5 90.4 90.6 92.0 93.9 94.3 94.8 95.2 96.3 96.5 96.2 95.0 94.8 94.5 18 Chemical products 3.5 115.8 114.2 115.0 113.9 114.3 115.4 117.4 117.3 117.0 117.9 118.0 117.9 118.5 119.1 19 Paper products 2.5 123.6 122.2 122.7 121.8 123.3 122.1 122.6 124.8 125.6 126.4 126.8 126.8 124.6 125.6 70 Energy 2.7 108.5 105.5 104.4 109.0 110.0 109.4 109.5 106.7 108.5 112.0 109.3 106.7 106.1 109.0 71 Fuels .7 103.5 104.3 101.4 103.6 104.9 105.2 104.0 104.4 103.5 103.6 104.3 103.4 103.4 103.0 22 Residential utilities 2.0 110.4 105.9 105.5 111.0 111.9 110.9 111.5 107.6 110.3 115.1 111.2 108.0 107.2 111.2 73 Equipment 20.0 112.2 112.5 112.8 112.7 112.8 112.8 111.6 111.8 111.9 111.4 110.9 109.5 110.4 110.5 74 Business equipment 13.9 121.5 120.3 121.3 121.7 121.9 122.5 121.3 122.2 122.3 121.8 121.4 119.8 121.2 121.4 75 Information processing and related .. 5.6 131.5 131.2 131.5 131.8 130.9 131.1 130.3 130.3 131.7 133.4 134.0 134.1 134.8 135.0 76 Office and computing 1.9 155.5 155.1 155.6 155.6 154.0 156.0 153.1 152.2 156.0 157.8 159.1 160.6 162.2 163.0 77 4.0 108.0 109.5 109.3 109.3 109.1 109.0 108.6 108.2 106.8 104.2 102.3 100.6 101.2 101.3 78 2.5 126.8 120.4 124.1 125.9 128.0 131.2 126.7 132.7 133.1 130.5 129.5 124.2 129.5 129.4 79 Autos and trucks 1.2 88.6 76.7 84.4 87.9 90.8 96.6 86.2 99.3 101.1 96.5 96.1 84.9 94.7 95.0 30 Other 1.9 113.6 110.8 112.7 113.0 114.8 114.0 114.8 114.2 113.6 113.8 114.1 113.1 113.1 114.0 31 Defense and space equipment 5.4 91.1 93.9 92.5 91.5 91.0 90.0 89.8 89.1 89.1 88.8 8888..11 86.9 86.3 85.8 37 Oil and gas well drilling .6 93.3 107.7 105.1 101.3 103.0 97.8 86.7 80.1 79.0 78.1 7755..88 71.8 73.9 76.2 33 Manufactured homes .2 85.5 79.3 83.1 86.6 90.8 86.5 90.3 86.2 86.3 87.0 87.9 98.5 99.7 102.0 34 Intermediate products, total 14.7 103.4 101.3 101.2 102.7 104.0 104.0 104.4 104.3 104.1 103.9 103.8 103.4 103.6 103.9 35 Construction supplies 6.0 96.0 94.0 94.9 95.8 97.4 96.9 96.7 96.5 95.4 95.9 95.0 95.3 95.3 95.1 36 Business supplies 8.7 108.4 106.4 105.6 107.5 108.5 109.0 109.7 109.7 110.1 109.4 110.0 109.0 109.4 110.1 37 39.2 105.5 102.6 103.4 104.5 105.4 107.0 107.2 107.5 107.4 106.6 105.8 104.9 105.2 105.4 38 Durable goods materials 19.4 107.1 103.3 104.9 106.2 106.7 108.2 109.1 109.3 108.8 108.6 108.1 106.9 107.5 107.5 39 Durable consumer parts 4.2 96.4 87.5 92.1 95.5 97.3 100.2 100.1 101.3 101.6 100.5 97.0 95.2 96.5 97.0 40 Equipment parts 7.3 114.4 114.8 114.6 114.8 113.6 113.5 114.3 113.9 113.6 113.7 114.2 114.1 114.9 114.9 41 Other 7.9 106.0 101.0 102.6 103.8 105.3 107.5 109.0 109.3 108.2 108.3 108.4 106.5 106.4 106.2 47 Basic metal materials 2.8 106.0 101.2 101.6 103.0 105.9 108.8 110.2 109.5 107.7 108.1 108.1 105.1 105.3 104.8 43 Nondurable goods materials 9.0 105.9 102.8 103.1 103.7 104.9 108.1 107.8 108.3 109.6 107.7 107.1 106.2 106.3 106.3 44 Textile materials 1.2 97.0 92.7 94.7 96.8 98.1 101.4 101.5 99.5 101.8 99.9 98.5 97.8 98.8 99.5 45 Pulp and paper materials 1.9 106.9 102.4 102.0 101.5 106.9 110.3 108.2 110.4 112.0 108.6 109.6 104.8 106.4 107.7 46 Chemical materials 3.8 106.1 102.7 102.9 103.9 103.9 107.7 107.9 108.2 109.9 108.3 107.0 107.3 106.9 106.4 47 Other 2.1 109.7 108.8 109.0 109.2 108.6 110.5 110.9 111.3 111.2 110.1 109.7 110.1 109.3 108.8 48 Energy materials 10.9 102.3 101.3 101.1 102.4 103.4 104.1 103.3 103.6 103.1 102.2 100.4 100.2 100.4 101.0 49 Primary energy 7.2 102.4 101.5 100.5 101.2 104.7 106.2 104.5 103.8 102.8 100.9 100.4 100.2 100.2 100.1 50 Converted fuel materials 3.7 102.0 100.8 102.4 104.7 101.0 100.1 101.0 103.4 103.8 104.5 100.5 100.2 100.8 102.9 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.3 107.6 105.7 106.1 106.9 107.8 108.4 108.5 108.6 108.5 108.3 107.7 107.0 107.2 107.5 52 Total excluding motor vehicles and parts ... 95.3 107.9 106.2 106.5 107.3 108.1 108.6 108.8 108.8 108.8 108.7 108.0 107.3 107.5 107.8 53 Total excluding office and computing machines 97.5 105.8 103.7 104.2 105.2 106.2 106.9 106.8 107.3 107.2 106.8 106.1 110055..00 110055..55 110055..77 54 Consumer goods excluding autos and trucks 24.5 108.6 106.4 106.7 107.6 108.9 108.9 109.5 109.8 109.9 110.7 109.8 110099..44 110099..44 110099..88 55 Consumer goods excluding energy 23.3 107.4 104.6 105.6 106.3 107.7 108.1 108.3 109.7 109.8 109.8 109.1 108.2 108.8 109.0 56 Business equipment excluding autos and trucks 12.7 124.7 124.5 124.9 125.0 125.0 125.0 124.7 124.4 124.4 124.3 112233..99 123.4 112233..99 112244..22 57 Business equipment excluding office and computing equipment 12.0 116.0 114.6 115.7 116.3 116.7 117.0 116.2 117.3 111166..99 116.0 111155..33 111133..33 111144..66 111144..77 58 Materials excluding energy 28.4 106.7 103.1 104.3 105.4 106.1 108.2 108.7 109.0 109.1 108.3 107.8 106.7 107.1 107.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • June 1992 2.13—Continued 1987 Group c S o IC de 2 p p r o o r - - a 1 v 99 g 1 . tion Mar. Apr. May July Aug. Sept Oct. Nov. Dec. Jan.r Feb.r Mar.p Index (1987 = 100) MAJOR INDUSTRIES 1 Total index . 100.0 105.0 105.5 106.4 108.1 108.0 108.4 107.4 106.4 2 Manufacturing 84.4 107.4 105.2 105.9 106.6 107.5 108.3 108.4 108.9 109.0 108.6 108.1 107.2 3 Primary processing .. 26.7 102.4 99.0 99.6 100.7 102.1 103.7 104.1 104.4 104.7 104.1 103.5 103.0 4 Advanced processing 57.7 109.8 108.0 108.9 109.3 109.9 110.5 110.3 111.0 111.0 110.7 110.3 109.3 Durable goods 47.3 107.1 105.0 106.0 106.7 107.3 108.1 107.8 108.4 108.2 107.8 107.1 105.8 Lumber and products ... 24 2.0 94.2 91.2 92.7 92.5 96.7 94.8 95.3 95.2 93.8 96.4 95.2 97.1 Furniture and fixtures ... 25 1.4 99.1 95.4 98.3 98.5 99.4 100.5 101.3 101.2 100.5 99.9 100.6 98.7 Clay, glass, and stone products 32 2.5 94.9 94.4 94.2 95.1 95.0 95.8 95.5 94.4 94.4 92.8 93.0 92.6 Primary metals 33 3.3 99.5 94.7 94.5 96.9 96.4 101.2 102.6 102.3 102.6 103.5 101.3 101.9 Iron and steel 331,2 1.9 98.0 92.0 91.6 94.0 92.9 99.5 100.6 100.8 102.4 105.6 101.7 104.0 Raw steel .1 97.3 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 98.4 98.5 101.0 101.5 103.5 105.5 104.4 102.9 100.5 100.8 98.9 Fabricated metal products 5.4 100.4 97.8 98.0 99.1 99.8 100.9 101.4 101.9 101.9 101.8 101.2 99.6 Nonelectrical machinery. 8.6 123.5 123.1 123.5 123.6 123.4 123.9 123.3 123.1 123.5 122.8 121.9 121.4 Office and computing machines 357 2.5 155.5 155.1 155.6 155.6 154.0 156.0 153.0 152.2 155.9 157.8 159.1 160.5 T E r le a c n t s r p ic o a r l t a m tio a n ch inery 36 8.6 110.1 108.6 109.7 110.6 111.5 111.0 111.5 111.0 109.8 110.7 110.6 110.3 equipment 98.2 101.3 102.2 98.0 93.7 Motor vehicles and 9.8 97.2 99.7 102.4 99.7 parts 90.4 79.8 89.8 96.7 94.6 87.1 Autos and light 4.7 86.2 92.5 100.4 95.9 20 Aerosp tr a u c c e k a s n d miscel- 2.3 84.0 88.2 91.2 97.3 89.1 101.8 103.2 97.6 95.5 83.5 laneous transportation equipment.. 372-6,9 5.1 106.0 108.8 107.2 105.8 106.1 105.4 105.6 104.6 104.3 103.1 101.2 99.7 Instruments 38 3.3 118.2 118.4 118.6 118.2 117.3 116.5 116.9 118.1 118.2 118.7 119.0 118.3 Miscellaneous 39 1.2 119.3 115.3 117.5 118.7 119.8 121.6 123.2 121.5 120.6 120.7 121.0 120.3 23 Nondurable goods 107.9 105.4 105.9 106.5 107.6 108.6 109.0 109.6 110.1 109.6 109.5 109.0 24 Foods 108.6 107.4 107.6 107.8 108.6 108.3 108.7 109.5 109.4 110.1 109.6 109.2 25 Tobacco products 1.0 99.7 98.2 97.6 98.7 99.4 102.6 103.1 102.7 102.2 97.7 94.7 98.8 26 Textile mill products 1.8 100.5 95.4 97.2 99.2 101.7 104.2 104.7 103.2 105.5 104.4 102.5 102.1 27 Apparel products 2.4 96.2 92.5 93.2 95.2 96.2 97.8 98.3 98.1 98.7 98.8 99.0 97.5 28 Paper and products 3.6 105.1 101.3 101.3 101.3 105.3 108.1 106.5 108.0 109.0 106.1 107.0 104.4 29 Printing and publishing .. 6.4 112.3 110.4 110.7 110.6 111.2 111.9 112.3 113.3 114.4 114.2 114.5 114.6 30 Chemicals and products . 8.6 110.9 108.2 109.0 109.2 109.6 111.5 112.3 112.6 113.5 113.0 112.6 112.4 31 Petroleum products 1.3 107.5 108.5 105.7 107.5 109.6 108.3 107.3 108.6 106.0 106.7 108.6 106.3 32 Rubber and plastic products 3.0 110.0 104.4 106.6 109.2 110.5 110.1 112.6 113.8 113.2 112.6 113.0 113.0 33 Leather and products ... .3 88.1 91.5 90.0 89.5 90.9 91.0 87.1 85.8 83.9 84.3 83.2 83.0 34 Mining 7.9 101.1 101.5 100.9 100.2 102.1 102.7 101.3 101.4 100.7 99.6 97.5 35 Metal 10 .3 150.2 147.6 145.7 148.0 157.0 153.0 155.5 153.1 146.5 151.5 154.0 144.8 36 Coal 11,12 1.2 109.2 109.9 105.9 103.4 110.2 116.0 110.8 110.1 107.9 108.4 107.6 107.3 37 Oil and gas extraction... 13 5.7 95.8 96.4 96.6 96.0 96.9 96.4 95.7 96.0 96.0 94.1 93.0 92.0 38 Stone and earth minerals 14 .7 108.1 108.0 107.0 107.5 106.4 107.8 107.0 107.3 105.9 105.8 106.4 104.1 39 Utilities... 7.6 109.2 106.4 105.9 111.4 111.5 110.9 110.7 109.7 109.4 111.0 107.9 106.8 40 Electric. 491.3PT 6.0 112.8 109.8 109.8 116.4 117.1 116.6 115.6 113.4 112.2 112.7 109.9 109.3 41 Gas .... 492,3PT 1.6 96.0 93.6 91.6 92.8 90.7 89.7 92.4 95.8 98.9 104.7 100.5 97.6 SPECIAL AGGREGATES 42 Manufacturing excluding motor vehicles and parts 79.8 108.4 106.7 107.1 107.6 108.3 109.0 109.3 109.5 109.5 109.3 108.9 108.4 43 Manufacturing excluding office and computing machines 82.0 106.0 103.7 104.4 105.1 106.1 106.9 107.0 107.6 107.6 107.1 106.6 105.6 Gross value (billions of 1982 dollars, annual rates) MAJOR MARKETS 44 Products, total 1,734.8 1,880.0 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 1,888.9 1,868.3 1,889.9 45 Final 1,350.9 1,481.8 1,455.6 1,464.6 1,478.1 1,490.5 1,4%. 1 1,484.5 1,501.5 1,510.0 1,504.1 1,488.0 1,467.5 1,489.9 46 Consumer goods 833.4 879.8 857.4 862.9 874.4 884.2 888.3 882.7 898.3 902.4 902.2 894.5 876.2 888.5 47 Equipment 517.5 602.0 598.2 601.7 603.7 606.2 607.8 601.8 603.3 607.6 601.8 593.5 591.3 601.4 48 Intermediate 384.0 398.2 389.8 388.7 397.6 400.1 399.2 401.0 400.3 401.4 400.8 401.0 400.8 400.0 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 11999911 May June July Aug. Sept. Oct. Nov. Dec.r Jan.r Feb. Private residential real estate activity (thousands of units, except as noted) NEW UNITS 1 Permits authorized 1,339 1,111 961 966 999 1,005 953 982 1,028 993 1,055 1,111 1,166 ? One-family 932 794 759 760 780 794 769 782 796 787 851 912 965 3 Two-or-more-family 407 317 202 206 219 211 184 200 232 206 204 199 201 4 Started 1,376 1,193 1,014 983 1,036 1,053 1,053 1,020 1,085 1,085 1,118 1,180 1,283 One-family 1,003 895 840 830 870 881 881 864 887 907 972 989 1,131 6 Two-or-more-family 373 298 174 153 166 172 172 156 198 178 146 191 152 7 Under construction at end of period .. 850 711 606R 665 654 652 648 632 631 633 633 641 635 8 One-family 535 449 434R 445 446 452 455 452 451 454 458 467 468 9 Two-or-more-family 315 262 173R 220 208 200 193 180 180 179 175 174 167 10 Completed 1,423 1,308 L,091R 1,072 1,104 1,065 1,051 1,193 1,073 1,021 1,021 1,033 1,051 II One-family 1,026 966 838R 803 817 809 821 870 879 824 851 828 887 1? Two-or-more-family 396 342 253 269 287 256 230 323 194 197 170 205 164 13 Mobile homes shipped 198 188 171 173 172 175 175 172 171 171 176 192 197 Merchant builder activity in one-family units 14 Number sold 650 535 507R 511 513 505 522 499 526 557788RR 556677 663300 661133 15 Number for sale at end of period' ... 365 321 283 298 296 295 292 292 289 286 283 281 269 Price of units sold (thousands of dollars)2 16 Median 120.4 122.3 120.0 116.0 119.0 120.0 120.8 120.0 122.6 118.5 122.0 112233..00 111177..00 17 Average 148.3 149.0 147.0" 145.4 145.9 148.2 141.8 147.3 147.4 141.7R 142.8 145.1 144.7 EXISTING UNITS (one-family) 18 Number sold 3,346 3,211 3,219 3,480R 3,480R 3,260R 3,I90R 3,120R 3,150R 3,230R 3,310 3,220 3,490 Price of units sold (thousands of dollars)2 19 92.9 95.2 99.7 101.3 102.1 103.4 102.0 100.3 99.1 97.9 100.3 110022..44 110022..88 20 Average 118.0 118.3 127.4 130.8 130.6 132.2 130.9 127.8 126.4 124.9 127.3 130.5 128.8 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 443,720 446,433 403,955r 399,030 398,189 398,409 403,151 406,983 408,779r 405,482" 400,825 407,934 406,243 77 345,416 337,776 295,187R 291,048 290,871 290,299 293,402 296,621 296,306R 293,693" 291,202 294,664 292,628 73 Residential 196,551 182,856 I60,561R 154,567 158,282 158,039 162,800 166,578 166,919R 166,474" 165,378 168,636 168,484 ?4 Nonresidential, total 148,865 154,920 134,626R 136,481 132,589 132,260 130,602 130,043 129,387R 127,219" 125,824 126,028 124,144 ?5 Industrial buildings 20,412 23,849 21,732 20,683 20,868 20,885 20,418 20,321 21,573R 21,665 22,472 22,246 21,656 ?6 Commercial buildings 65,496 62,866 47,997 50,220 47,596 47,144 46,341 45,589 44,580" 42,155" 40,763 39,863 39,338 77 Other buildings 19,683 21,591 20,707 20,858 20,429 20,674 19,973 20,615 20,657" 20,368" 20,770 20,628 20,519 28 Public utilities and other 43,274 46,614 44,190" 44,720 43,696 43,557 43,870 43,518 42,577" 43,031" 41,819 43,291 42,631 79 Public 98,303 108,655 108,769R 107,982 107,318 108,110 109,749 110,361 112,472" 111,790" 109,624 113,270 113,614 30 Military 3,520 2,734 1,880R 1,918 1,864 1,759 1,783 2,261 1,181" 1,829" 2,671 2,071 2,266 31 Highway 28,171 30,595 29,012 29,246 28,776 28,854 30,047 28,610 29,038" 28,737" 28,991 29,310 31,791 17 Conservation and development... 4,989 4,718 5,331R 5,123 5,807 4,688 4,901 4,226 6,095" 6,812" 5,412 5,377 5,886 33 Other 61,623 70,608 72,546R 71,695 70,871 72,809 73,018 75,264 76,158" 74,412" 72,550 76,512 73,671 1. Not at annual rates. SOURCE. Bureau of the Census estimates for all series except (1) mobile homes, 2. Not seasonally adjusted. which are private, domestic shipments as reported by the Manufactured Housing 3. Recent data on value of new construction may not be strictly comparable Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices with data for previous periods because of changes by the Bureau of the Census in of existing units, which are published by the National Association of Realtors. All its estimating techniques. For a description of these changes, see Construction back and current figures are available from the originating agency. Permit Reports (C-30-76-5), issued by the Bureau in July 1976. authorizations are those reported to the Census Bureau from 17,000 jurisdictions beginning in 1984. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • June 1992 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data, except as noted Change from 12 Change from 3 months earlier months earlier (annual rate) Change from 1 month earlier IIInnndddeeexxx llleeevvveeelll,,, IIIttteeemmm 1991 1992 1991 1992 MMMaaarrr... 11999911 11999922 111999999222 MMaarr.. MMaarr.. June Sept. Dec. Mar. Nov. Dec. Jan. Feb. Mar. CONSUMER PRICES2 (1982-84=100) 1 All items 4.9 3.2 3.0 3.0 3.2 3.5 .4 .2 .1 .3 .5 139.3 2 Food 3.3 1.7 4.8 -2.3 2.7 1.5 .4 .3 -.4 .3 .5 138.1 3 Energy items 4 All items less food and energy 4.4 -.8 -.8 1.2 3.6 -6.9 .8 .1 -1.5 -.9 .6 98.9 5 Commodities 5.2 3.9 3.2 4.6 3.1 4.8 .3 .2 .3 .4 .5 146.4 6 Services 3.8 3.1 2.2 4.4 .6 5.3 .3 -.2 .2 .6 .5 132.1 6.0 4.2 3.3 4.6 4.3 4.8 .3 .4 .4 .3 .5 154.7 PRODUCER PRICES (1982 = 100) 7 Finished goods 3.2 .9 .7 1.3 1.0 .7 .1 -.1 -.3 .2 .2 122.0 8 Consumer foods .6 -1.4 -.6 -4.4 -1.3 1.0 -.2 -.2 -.3 1.1 -.5 123.4 9 Consumer energy 12.7 -1.5 -1.5 3.7 -.5 -7.0 .1 -1.4 -2.8 -.1 1.2 74.4 10 Other consumer goods 4.2 2.7 1.8 3.6 2.4 3.0 .2R .R .4 .1 .2 136.4 11 Capital equipment 3.5 1.7 1.6 1.3 1.9 1.9 .2 .2 .2 .0 .2 128.4 Intermediate materials 12 Excluding foods and feeds 1.7 -.5 -1.0 .4 -1.7 .0 -.lr -.R -.5 .5 .0 113.8 13 Excluding energy 1.2 -.2 -.7 -1.3 .0 1.7 .1 .1 -.2 .4 .2 121.6 Crude materials 14 Foods -4.7 -2.2 -8.6 -6.6 -3.8 11.3 -.7r -.3r 1.7 2.2 -1.2 107.5 15 Energy -2.0 -4.5 .5 -.5 4.8 -20.7 ,7r -4.R -3.5 1.2 -3.4 73.5 16 Other -1.5 -3.3 -14.1 -4.9 -7.4 15.5 -.8r -,6r .0 1.4 2.2 127.8 1. Not seasonally adjusted. rental-equivalence measure of homeownership. 2. Figures for consumer prices are for all urban consumers and reflect a SOURCE. Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A51 2.16 GROSS DOMESTIC PRODUCT AND INCOME Billions of current dollars, except as noted; quarterly data at seasonally adjusted annual rates 1990 1991 11998899 11999900 11999911rr Q4 Ql Q2 Q3 Q4< GROSS DOMESTIC PRODUCT 1 Total 5,244.0 5,513.8 5,672.6 5,557.5 5,589.0 5,652.6 5,709.2 5,739.7 By source 2 Personal consumption expenditures 3,517.9 3.742.6 3,889.1 3,812.0 3,827.7 3.868.5 3,916.4 3,943.7 3 Durable goods 459.8 465.9 445.2 451.9 440.7 440.0 452.9 447.3 4 Nondurable goods 1,146.9 1.217.7 1,251.9 1,246.4 1,246.3 1,252.9 1,257.4 1.251.1 5 Services 1,911.2 2,059.0 2,191.9 2,113.6 2,140.7 2.175.6 2,206.1 2.245.2 6 Gross private domestic investment 837.6 802.6 726.7 750.9 709.3 708.8 740.9 747.9 7 Fixed investment 801.6 802.7 745.2 787.4 748.4 745.8 744.5 742.0 8 Nonresidential 570.7 587.0 550.1 585.2 560.0 554.6 546.8 539.0 9 Structures 193.1 198.7 174.6 191.2 184.0 180.0 169.0 165.2 10 Producers' durable equipment 377.6 388.3 375.5 394.0 375.9 374.7 377.8 373.8 11 Residential structures 230.9 215.7 195.1 202.2 188.4 191.2 197.7 203.0 12 Change in business inventories 36.0 .0 -18.5 -36.5 -39.2 -37.1 -3.6 6.0 13 Nonfarm 35.5 -2.0 -15.0 -28.9 -35.0 -34.0 -3.2 12.1 14 Net exports of goods and services -82.9 -74.4 -30.7 -76.6 -36.8 -17.2 -37.3 -31.4 15 Exports 504.9 550.4 591.3 572.6 565.9 589.8 597.0 612.5 16 Imports 587.8 624.8 622.0 649.2 602.7 607.0 634.3 643.8 17 Government purchases of goods and services .. 971.4 1,042.9 1,087.5 1,071.2 1,088.8 1,092.5 1,089.1 1,079.5 18 Federal 401.4 424.9 445.1 434.5 451.5 452.1 444.9 432.0 19 State and local 570.0 618.0 642.4 636.7 637.3 640.4 644.2 647.5 By major type of product 20 Final sales, total 5.208.1 5,513.8 5.691.1 5,594.0 5,628.2 5.689.6 5,712.8 5,733.8 21 Goods 2,062.1 2,167.6 2,211.7 2,194.5 2,208.6 2,223.2 2,214.1 2,200.8 22 Durable 892.9 934.7 926.5 927.2 916.4 939.5 929.4 920.5 23 Nondurable 1.169.2 1,233.0 1.285.2 1,267.3 1,292.1 1.283.7 1,284.7 1,280.3 24 Services 2,634.7 2,834.0 3,012.9 2,905.5 2,951.7 2,999.0 3,035.1 3,065.7 25 Structures 511.3 512.2 466.5 494.0 467.9 467.4 463.5 467.3 26 Change in business inventories 36.0 .0 -18.5 -36.5 -39.2 -37.1 -3.6 6.0 27 Durable goods 26.9 -7.0 -25.2 -29.4 -43.5 -33.5 -9.2 -14.5 28 Nondurable goods 9.1 7.0 6.7 -7.1 4.3 -3.6 5.6 20.4 MEMO 4,836.9 4,884.9 4,848.8 4,855.1 4,824.0 4,840.7 4,862.7 4,868.0 29 Total GDP in 1987 dollars NATIONAL INCOME 4,244.7 4,459.6 4,542.5 4,506.8 4,489.8 4,530.8 4,559.8 4,589.3 30 Total 3,101.3 3,290.3 3,388.2 3,340.0 3,342.9 3,377.4 3.405.3 3,427.4 31 Compensation of employees 2,585.8 2,738.9 2,808.2 2,778.3 2,771.1 2,800.2 2.822.4 2,839.3 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 2,267.7 2,253.0 2,235.1 2,260.1 2,280.6 2,295.1 34 Other 515.5 551.4 580.0 561.6 571.8 577.2 582.9 588.1 35 Supplement to wages and salaries 261.7 277.3 289.4 281.7 287.5 288.7 290.2 291.1 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 347.0 373.2 379.7 373.9 364.2 380.0 382.5 392.0 39 Business and professional1 305.5 330.7 344.5 332.7 331.4 340.4 350.5 355.9 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 -12.7 -9.5 -11.9 -11.7 -14.2 -13.1 42 Corporate profits1 .. 351.7 319.0 307.1 296.1 302.1 303.5 306.1 316.6 43 Profits before tax3 344.5 332.3 312.7 326.1 309.1 306.2 318.2 317.2 44 Inventory valuation adjustment -17.5 -14.2 3.1 -21.2 6.7 9.9 -4.8 .7 45 Capital consumption adjustment 24.7 .8 -8.7 -8.8 -13.6 -12.6 -7.3 -1.3 46 Net interest 452.6 490.1 480.2 506.4 492.6 481.6 480.1 466.5 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 • June 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 4,834.4 4,764.7 4,768.0 4,821.1 4,853.3 4,895.3 2 Wage and salary disbursements 2,585.8 2,738.9 2,808.3 2,778.2 2,770.9 2,800.6 2,822.4 2,839.3 3 Commodity-producing industries 723.8 745.4 738.7 745.2 733.4 735.2 742.3 744.1 4 Manufacturing 542.1 555.8 556.5 557.3 549.3 552.3 559.9 564.3 5 Distributive industries 607.5 634.6 641.2 639.0 635.1 642.0 644.0 643.9 6 Service industries 775.9 845.0 887.8 868.8 866.5 883.0 894.4 907.2 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 347.0 373.2 379.7 373.9 364.2 380.0 382.5 392.0 10 Business and professional1 305.5 330.7 344.5 332.7 331.4 340.4 350.5 355.9 11 Farm' 41.4 42.5 35.1 41.2 32.8 39.6 32.0 36.1 12 Rental income of persons2 -7.9 -12.9 -12.7 -9.5 -11.9 -11.7 -14.2 -13.1 13 Dividends 119.8 124.8 128.5 127.0 128.7 127.4 128.7 129.4 14 Personal interest income 669.0 721.3 718.6 736.9 730.1 721.8 716.7 705.7 15 Transfer payments 624.4 684.9 759.5 705.8 737.2 751.5 763.7 785.4 16 Old-age survivors, disability, and health insurance benefits ... 325.1 352.0 380.0 358.4 373.1 377.2 381.7 388.1 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 4,834.4 4,764.7 4,768.0 4,821.1 4,853.3 4,895.3 19 LESS: Personal tax and nontax payments 591.7 621.0 616.1 627.2 617.1 613.6 615.1 618.4 20 EQUALS: Disposable personal income 3,788.6 4,058.8 4,218.4 4,137.5 4,151.0 4,207.5 4,238.2 4,276.8 21 LESS: Personal outlays 3,622.4 3,853.1 3,999.1 3,922.5 3,938.4 3,978.7 4,025.7 4,053.5 22 EQUALS: Personal saving 166.1 205.8 219.3 215.0 212.6 228.8 212.5 223.4 MEMO Per capita (1987 dollars) 23 Gross domestic product 19,550.5 19,540.2 19,189.8 19,337.3 19,166.5 19,187.7 19,220.9 19,184.8 24 Personal consumption expenditures 13,027.6 13,050.8 12,897.9 12,951.6 12,877.4 12,892.0 12,930.2 12,891.4 25 Disposable personal income 14,030.0 14,154.0 13,990.0 14,058.0 13,965.0 14,022.0 13,992.0 13,981.0 26 Saving rate (percent) 4.4 5.1 5.2 5.2 5.1 5.4 5.0 5.2 GROSS SAVING 27 Gross saving 743.4 710.9 715.S 677.5 746.9 713.1 697.2 704.8 28 Gross private saving 826.5 850.4 887.0 853.1 873.0 892.1 875.5 907.2 29 Personal saving 166.1 205.8 219.3 215.0 212.6 228.8 212.5 223.4 30 Undistributed corporate profits 85.8 49.9 44.7 32.8 45.0 43.4 39.4 51.2 31 Corporate inventory valuation adjustment -17.5 -14.2 3.1 -21.2 6.7 9.9 -4.8 .7 Capital consumption allowances 32 Corporate 350.5 365.5 383.6 372.7 380.1 383.2 384.6 386.6 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 -171.5 -175.6 -126.1 -179.1 -178.4 -202.4 35 Federal -124.2 -165.3 -201.5 -193.6 -146.4 -206.7 -210.2 -242.8 36 State and local 41.1 25.7 30.0 18.0 20.4 27.6 31.8 40.4 37 Gross investment 740.7 719.0 734.3 679.6 764.9 729.6 719.1 723.4 38 Gross private domestic 837.6 802.6 726.7 750.9 709.3 708.8 740.9 747.9 39 Net foreign -96.8 -83.6 7.6 -71.3 55.7 20.8 -21.8 -24.5 40 Statistical discrepancy -2.7 8.1 18.8 2.1 18.0 16.5 22.0 18.6 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 1990 1991 Q4 Q1 Q2 Q3 Q4 1 Balance on current account -106,304 -92,123 -8,615 -23,402 10,374 2,897 -11,617 -10,266 2 Not seasonally adjusted -25,136 15,507 4,593 -16,502 -12,213 3 Merchandise trade. b.a. lance2 -115,917 -108,115 -73,586 -27,728 -18,538 -15,537 -20,849 -18,662 4 Merchandise exports 361,451 389,550 416,517 100,580 100,549 103,889 104,018 108,061 5 Merchandise imports -477,368 -497,665 -490,103 -128,308 -119,087 -119,426 -124,867 -126,723 6 Military transactions, net -6,203 -7,219 -5,280 -2,243 -2,329 -1,484 -882 -584 7 Investment income, net 2,689 11,945 9,363 6,133 4,902 2,365 1,863 234 Other service transactions, net 28,618 33,595 41,158 9,716 9,420 10,445 11,131 10,163 Remittances, pensions, and other transfers . -4,420 -4,843 -5,383 -1,201 -1,336 -1,336 -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 3,878 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 -2,192 -15,702 -18,281 -40,908 18 Bank-reported claims3 -51,255 5,333 3,428 -24,513 20,598 1,215 2,325 -20,710 19 Nonbank-reported claims 2,581 -1,944 -4,798 -2,509 -1,308 -2,076 -1,414 20 U.S. purchases of foreign securities, net -22,575 -28,476 -46,215 -7,546 -9,430 -12,833 -12,533 -ii,419 21 U.S. direct investments abroad, net -33,388 -33,437 -29,498 -3,802 -12,052 -2,008 -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 liabilities 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 58,919 18,732 -7,361 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 -8,522 8,781 -4,156 750 36 Due to seasonal adjustments 2,007 4,322 496 -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 -3,656 575 988 -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 • June 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 11999911 Aug. Sept. Oct. Nov. Dec. Jan.r Feb." 1 Exports of domestic and foreign merchandise, excluding grant-aid shipments 363,812 393,592 421,614 34,380 35,348 37,114 36,939 35,887 35,406 37,815 2 General imports, including merchandise for immediate consumption plus entries into bonded warehouses 473,211 495,311 487,870 40,910 42,282 43,434 41,109 41,886 41,355 41,198 3 Trade balance -109,399 -101,718 -66,256 -6,530 -6,934 -6,320 -4,171 -5,999 -5,949 -3,383 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 1988 1989 1990 Sept. Oct. Dec. Jan. Feb. 1 Total 47,802 74,609 83,316 74,731 74,508 74,651 77,719 75,868 75,088 2 Gold stock, including Exchange Stabilization Fund, 11,057 11,059 11,058 11,062 11,059 11,058 11,057 11,058 11,058 3 Special drawing rights • 9,637 9,951 10,989 10,722 10,710 10,942 11,240 10,980 11,020 4 Reserve position in International Monetary Fund 9,745 9,048 9,076 9,094 9,065 8,943 9,488 9,113 8,996 5 Foreign currencies4 17,363 44,551 52,193 43,853 43,674 43,708 45,934 44,717 44,014 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 Sept. Oct. Nov. Dec. Jan.r Feb." Mar.P 1 Deposits 347 589 369 384 223 346 968 321 264 262 Assets held in custody 2 U.S. Treasury securities2 232,547 224,911 278,499 279,013 280,249 285,905 281,107 293,958 297,834 300,277 3 Earmarked gold3 13,636 13,456 13,387 13,330 13,326 13,307 13,303 13,303 13,305 13,304 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 Data' Millions of dollars, end of period 1991 1992 AAsssseettss 11998888 11998899 11999900 Aug. Sept. Oct. Nov. Dec. Jan. Feb. All foreign countries 1 Total, all currencies 505,595 545,366 556,925 528,077 547,038 546,570 550,777 548,901 547,968 550,618 7 Claims on United States 169,111 198,835 188,4% 169,061 177,572 176,959 177,828 176,301 180,298 178,026 Parent bank 129,856 157,092 148,837 130,169 137,036 136,570 137,165 137,509 142,483 142,019 4 Other banks in United States 14,918 17,042 13,296 12,447 13,692 13,432 13,543 12,884 11,715 10,837 5 Nonbanks 24,337 24,701 26,363 26,445 26,844 26,957 27,120 25,908 26,100 25,170 6 Claims on foreigners 299,728 300,575 312,449 2%,855 299,910 299,915 304,212 303,934 297,154 301,900 7 Other branches of parent bank 107,179 113,810 135,003 112,916 114,526 108,269 107,343 111,729 103,456 108,052 8 Banks 96,932 90,703 72,602 76,393 77,293 80,060 84,980 81,970 82,081 83,255 9 Public borrowers 17,163 16,456 17,555 19,110 18,930 18,685 18,940 18,652 18,223 18,421 10 Nonbank foreigners 78,454 79,606 87,289 88,436 89,161 92,901 92,949 91,583 93,394 92,172 11 Other assets 36,756 45,956 55,980 62,161 69,556 69,696 68,737 68,666 70,516 70,692 12 Total payable in U.S. dollars 357,573 382,498 379,479 359,316 367,828 365,223 365,143 363,941 359,651 365,149 n Claims on United States 163,456 191,184 180,174 163,593 171,393 170,615 171,701 169,662 174,033 172,377 14 Parent bank 126,929 152,294 142,962 126,746 133,450 132,929 133,984 133,476 138,892 138,754 15 Other banks in United States 14,167 16,386 12,513 11,973 13,109 12,904 12,668 12,025 10,924 10,006 16 Nonbanks 22,360 22,504 24,699 24,874 24,834 24,782 25,049 24,161 24,217 23,617 17 Claims on foreigners 177,685 169,690 174,451 167,039 166,677 164,543 165,653 167,010 157,132 163,623 18 Other branches of parent bank 80,736 82,949 95,298 79,317 79,860 75,649 75,986 78,114 70,637 75,087 19 54,884 48,396 36,440 41,761 40,656 41,132 42,808 41,635 39,753 41,839 70 Public borrowers 12,131 10,961 12,298 14,160 13,609 13,889 13,671 13,685 13,202 13,136 71 Nonbank foreigners 29,934 27,384 30,415 31,801 32,552 33,873 33,188 33,576 33,540 33,561 22 Other assets 16,432 21,624 24,854 28,684 29,758 30,065 27,789 27,269 28,486 29,149 United Kingdom 23 Total, all currencies 156,835 161,947 184,818 162,879 172,113 172,795 174,648 175,599 174,467 172,479 74 Claims on United States 40,089 39,212 45,560 31,315 34,409 32,615 32,531 35,257 36,660 34,655 75 Parent bank 34,243 35,847 42,413 28,189 31,205 29,021 28,901 31,931 32,765 31,302 76 Other banks in United States 1,123 1,058 792 816 997 1,502 1,259 1,267 1,432 1,211 77 Nonbanks 4,723 2,307 2,355 2,310 2,207 2,092 2,371 2,059 2,463 2,142 78 Claims on foreigners 106,388 107,657 115,536 103,935 105,699 108,397 111,323 109,692 108,006 107,645 79 Other branches of parent bank 35,625 37,728 46,367 38,382 39,077 36,757 36,637 35,735 33,357 33,924 30 Banks 36,765 36,159 31,604 30,168 31,658 33,375 36,709 36,394 36,497 36,700 31 Public borrowers 4,019 3,293 3,860 3,717 3,502 3,492 3,512 3,306 3,377 3,144 37 Nonbank foreigners 29,979 30,477 33,705 31,668 31,462 34,773 34,465 34,257 34,775 33,877 33 Other assets 10,358 15,078 23,722 27,629 32,005 31,783 30,794 30,650 29,801 30,179 34 Total payable in U.S. dollars 103,503 103,208 116,762 100,966 105,243 103,439 103,591 105,974 103,833 102,341 35 Claims on United States 38,012 36,404 41,259 28,870 31,772 29,995 30,054 32,418 33,801 31,788 36 Parent bank 33,252 34,329 39,609 26,608 29,673 27,404 27,689 30,370 31,239 29,724 37 Other banks in United States 964 843 334 680 727 1,378 894 822 901 678 38 Nonbanks 3,796 1,232 1,316 1,582 1,372 1,213 1,471 1,226 1,661 1,386 39 Claims on foreigners 60,472 59,062 63,701 56,127 56,354 57,155 59,200 58,791 55,281 55,985 40 Other branches of parent bank 28,474 29,872 37,142 30,279 30,840 28,655 29,210 28,667 26,827 26,747 41 Banks 18,494 16,579 13,135 12,534 12,485 13,269 15,480 15,219 14,106 14,789 4? Public borrowers 2,840 2,371 3,143 3,083 2,899 2,%9 2,848 2,853 2,707 2,657 41 Nonbank foreigners 10,664 10,240 10,281 10,231 10,130 12,262 11,662 12,052 11,641 11,792 44 Other assets 5,019 7,742 11,802 15,969 17,117 16,289 14,337 14,765 14,751 14,568 Bahamas and Caymans 45 Total, all currencies 170,639 176,006 162,316 166,333 169,898 170,529 170,846 168,326 167,678 168,972 46 Claims on United States 105,320 124,205 112,989 111,787 116,263 117,782 118,164 115,244 116,694 115,400 47 Parent bank 73,409 87,882 77,873 77,566 80,890 83,286 83,348 81,520 84,712 84,499 48 Other banks in United States 13,145 15,071 11,869 11,119 12,063 11,028 11,457 10,907 9,626 8,%9 49 18,766 21,252 23,247 23,102 23,310 23,468 23,359 22,817 22,356 21,932 50 Claims on foreigners 58,393 44,168 41,356 46,318 45,321 43,662 44,177 45,229 42,660 44,033 51 Other branches of parent bank 17,954 11,309 13,416 10,774 10,326 9,086 10,268 11,098 10,549 11,528 5? Banks 28,268 22,611 16,310 21,113 20,535 20,300 19,865 20,174 18,787 19,311 53 Public borrowers 5,830 5,217 5,807 7,394 7,149 7,435 7,363 7,161 6,600 6,545 54 Nonbank foreigners 6,341 5,031 5,823 7,037 7,311 6,841 6,681 6,7% 6,724 6,649 55 Other assets 6,926 7,633 7,971 8,228 8,314 9,085 8,505 7,853 8,324 9,539 56 Total payable in U.S. dollars 163,518 170,780 158,390 162,260 165,966 166,598 166,582 163,771 163,108 164,548 1. Since June 1984, reported claims held by foreign branches have been million to $150 million equivalent in total assets, the threshold now applicable to reduced by an increase in the reporting threshold for "shell" branches from $50 all reporting branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • June 1992 3.14—Continued 1991 1992 Aug. Sept. Oct. Nov. Dec. Jan. Feb. All foreign countries 57 Total, all currencies 505,595 545,366 556,925 528,077 547,038 546,570 550,777 548,901 547,968 550,618 58 Negotiable certificates of deposit (CDs) .. 28,511 23,500 18,060 18,796 17,579 18,928 18,334 16,284 16,156 15,988 59 To United States 185,577 197,239 189,412 178,249 188,381 186,246 188,686 198,121 189,231 190,885 60 Parent bank 114,720 138,412 138,748 122,179 131,931 130,092 131,383 136,431 127,730 123,775 61 Other banks in United States 14,737 11,704 7,463 10,085 11,843 10,356 12,892 13,260r 13,683r 12,674 62 Nonbanks 56,120 47,123 43,201 45,985 44,607 45,798 44,411 48,430" 47,818r 54,436 63 To foreigners 270,923 296,850 311,668 290,257 295,393 295,282 298,152 288,254 295,713 299,046 64 Other branches of parent bank 111,267 119,591 139,113 112,845 113,849 108,534 109,085 112,033 105,725 108,744 65 Banks 72,842 76,452 58,986 62,329 62,665 68,286 67,945 63,097 72,374 71,346 66 Official institutions 15,183 16,750 14,791 18,030 19,420 17,247 19,394 15,596 16,704 16,972 67 Nonbank foreigners 71,631 84,057 98,778 97,053 99,459 101,215 101,728 97,528 100,910 101,984 68 Other liabilities 20,584 27,777 37,785 40,775 45,685 46,114 45,605 46,242 46,868 44,699 69 Total payable in U.S. dollars 367,483 396,613 383,522 360,397 367,450 366,449 369,515 370,561 360,439 363,680 70 Negotiable CDs 24,045 19,619 14,094 14,183 13,180 14,157 13,813 11,909 11,442 11,515 71 To United States 173,190 187,286 175,654 167,207 176,642 174,274 176,254 185,286 176,783 179,178 72 Parent bank 107,150 132,563 130,510 115,999 125,429 123,399 124,625 129,669 121,296 117,272 73 Other banks in United States 13,468 10,519 6,052 8,449 10,368 9,011 11,436 11,707r 12,191r 11,532 74 Nonbanks 52,572 44,204 39,092 42,759 40,845 41,864 40,193 43,910r 43,296r 50,374 75 To foreigners 160,766 176,460 179,002 164,188 163,299 161,850 164,275 158,993 156,191 156,744 76 Other branches of parent bank 84,021 87,636 98,128 79,277 79,427 75,243 76,224 76,601 70,691 74,466 77 Banks 28,493 30,537 20,251 23,330 21,239 25,653 24,501 24,156 25,748 23,665 78 Official institutions 8,224 9,873 7,921 11,496 12,591 10,565 13,375 10,304 10,555 10,652 79 Nonbank foreigners 40,028 48,414 52,702 50,085 50,042 50,389 50,175 47,932 49,197 47,961 80 Other liabilities 9,482 13,248 14,772 14,819 14,329 16,168 15,173 14,373 16,023 16,243 United Kingdom 81 Total, all currencies 156,835 161,947 184,818 162,879 172,113 172,795 174,648 175,599 174,467 172,479 82 Negotiable CDs 24,528 20,056 14,256 14,148 12,941 14,145 13,506 11,333 10,993 10,581 83 To United States 36,784 36,036 39,928 27,915 31,534 29,137 30,560 37,720 31,018 30,631 84 Parent bank 27,849 29,726 31,806 20,367 23,707 21,080 22,629 29,834 23,112 23,464 85 Other banks in United States 2,037 1,256 1,505 1,662 1,724 2,053 1,934 1,438 2,325 1,891 86 Nonbanks 6,898 5,054 6,617 5,886 6,103 6,004 5,997 6,448 5,581 5,276 87 To foreigners 86,026 92,307 108,531 96,773 98,572 100,267 102,299 98,167 104,868 104,432 88 Other branches of parent bank 26,812 27,397 36,709 27,457 29,898 26,879 26,977 30,054 27,561 27,864 89 Banks 30,609 29,780 25,126 25,131 23,525 28,254 27,959 25,541 31,929 30,686 90 Official institutions 7,873 8,551 8,361 10,722 12,071 10,045 12,628 9,670 10,432 10,685 91 Nonbank foreigners 20,732 26,579 38,335 33,463 33,078 35,089 34,735 32,902 34,946 35,197 92 Other liabilities 9,497 13,548 22,103 24,043 29,066 29,246 28,283 28,379 27,588 26,835 93 Total payable in U.S. dollars 105,907 108,178 116,094 100,131 104,303 103,238 104,433 108,755 103,232 100,882 94 Negotiable CDs 22,063 18,143 12,710 12,337 11,249 12,397 12,042 10,076 9,236 9,061 95 To United States 32,588 33,056 34,697 23,788 27,272 24,394 25,517 33,003 26,419 26,261 96 Parent bank 26,404 28,812 29,955 18,949 22,228 19,391 20,923 28,260 21,663 21,788 97 Other banks in United States 1,752 1,065 1,156 1,216 1,259 1,704 1,481 1,177 1,954 1,639 98 Nonbanks 4,432 3,179 3,586 3,623 3,785 3,299 3,113 3,566 2,802 2,834 99 To foreigners 47,083 50.517 60,014 54,848 56,829 56,639 57,527 56,626 57,522 55,216 100 Other branches of parent bank 18,561 18,384 25,957 18,480 20,878 18,319 18,678 20,800 18,498 18,863 101 Banks 13,407 12,244 9,488 9,731 8,401 12,040 10,542 11,069 13,061 11,188 102 Official institutions 4,348 5,454 4,692 7,929 9,149 7,050 9,995 7,156 7,580 7,698 103 Nonbank foreigners 10,767 14,435 19,877 18,708 18,401 19,230 18,312 17,601 18,383 17,467 104 Other liabilities 4,173 6,462 8,673 9,158 8,953 9,808 9,347 9,050 10,055 10,344 Bahamas and Caymans 105 Total, all currencies 170,639 176,006 162,316 166,333 169,898 170,529 170,846 168,326 167,678 168,972 106 Negotiable CDs 953 678 646 963 1,055 981 1,034 1,173 1,382 1,709 107 To United States 122,332 124,859 114,738 123,117 128,150 130,223 129,781 129,872 130,433 131,009 108 Parent bank 62,894 75,188 74,941 77,159 82,075 84,853 83,057 79,394 79,783 73,744 109 Other banks in United States 11,494 8,883 4,526 7,036 8,841 7,070 9,728 10,23lr 10,045r 9,733 110 Nonbanks 47,944 40,788 35,271 38,922 37,234 38,300 36,996 40,247r 40,605r 47,532 111 To foreigners 45,161 47,382 44,444 39,994 38,616 36,861 37,857 35,200 33,958 34,425 112 Other branches of parent bank 23,686 23,414 24,715 21,846 20,515 19,675 19,555 17,388 16,442 17,050 113 Banks 8,336 8,823 5,588 5,558 5,431 5,218 5,984 5,662 5,464 5,054 114 Official institutions 1,074 1,097 622 655 647 666 646 572 450 490 115 Nonbank foreigners 12,065 14,048 13,519 11,935 12,023 11,302 11,672 11,578 11,602 11,831 116 Other liabilities 2,193 3,087 2,488 2,259 2,077 2,464 2,174 2,081 1,905 1,829 117 Total payable in U.S. dollars 162,950 171,250 157,132 162,040 165,235 166,226 166,157 163,603 162,667 164,241 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 1991r 1992 IItteemm 11998899 11999900 Aug. Sept. Oct. Nov. Dec. Jan.r Feb." 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 36,496 39,880 43,417 47,374 38,402 41,526 42,701 38,161 40,487 3 U.S. Treasury bills and certificates 76,985 79,424 86,071 88,596 90,394 94,428 92,855 92,692 92,711 U.S. Treasury bonds and notes 179,269 202,487 197,104 196,815 197,645 198,157 205,351 207,805 215,549 568 4,491 4,704 4,734 4,765 4,7% 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 132,849 167,191 166,349 170,467 165,061 170,423 173,891 169,652 173,873 9,482 8,671 9,260 10,001 9,608 9,121 9,428 7,310 7,636 9,313 21,184 30,064 31,377 31,911 32,604 33,991 36,038 36,774 10 Asia 153,338 138,0% 134,806 134,826 133,082 134,667 137,522 139,590 145,407 1,030 1,434 1,183 1,202 1,558 1,519 1,383 2,092 2,409 12 Other countries 6,469 7,955 8,812 9,010 9,2% 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 in the United States and on the 1984 benchmark survey of foreign portfolio investment in the United States. 3.16 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in Foreign Currencies1 Millions of dollars, end of period 1991r IItteemm 11998888 11998899 11999900 Mar. June Sept. Dec. 74,980 67,835 70,477 64,815 59,306 63,063 74,944 68,983 65,127 66,7% 65,404 60,534 63,518 73,099 25,100 20,491 29,672 27,587 27,795 29,632 26,307 43,884 44,636 37,124 37,818 32,739 33,886 46,792 364 3,507 6,309 4,375 1,648 2,348 3,274 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 • June 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 Aug. Sept. Oct. Nov. Dec. Jan.r Feb." 1 All foreigners 736,878 759,634 753,759 735,425 739,374 750,213 758,168 753,759 750,593 753,961 2 Banks' own liabilities 577,498 577,229 573,156 554,807 558,008 565,384 575,625 573,156 571,078 573,289 3 Demand deposits 22,032 21,723 20,319 18,425 19,889 17,637 21,630 20,319 19,309 18,902 4 Time deposits2 168,780 168,017 159,520 147,136 150,211 154,693 154,314 159,520 147,328 144,298 Other. 67,823 65,822 65,607 71,791 67,927 72,934 75,679 65,607 73,698 77,092 6 Own foreign offices4 318,864 321,667 327,710 317,455 319,981 320,120 324,002 327,710 330,743 332,997 7 Banks' custody liabilities5 159,380 182,405 180,603 180,618 181,366 184,829 182,543 180,603 179,515 180,672 8 U.S. Treasury bills and certificates6 91,100 96,796 110,734 105,325 107,019 112,280 110,938 110,734 109,980 112,299 9 Other negotiable and readily transferable instruments7 19,526 17,578 18,664 16,475 16,791 17,047 17,206 18,664 17,687 17,115 10 Other 48,754 68,031 51,205 58,818 57,556 55,502 54,399 51,205 51,848 51,258 11 Nonmonetary international and regional organizations 4,894 5,918 8,597 6,945 7,160 7,665 8,721 8,597 9,795 10,555 12 Banks' own liabilities 3,279 4,540 6,443 4,971 5,655 5,964 6,828 6,443 8,012 8,819 13 Demand deposits 96 36 43 28 36 28 24 43 39 35 14 Time deposits 927 1,050 2,414 1,550 2,307 2,490 2,392 2,414 1,949 1,808 15 Other 2,255 3,455 3,986 3,393 3,312 3,446 4,412 3,986 6,024 6,976 16 Banks' custody liabilities5 1,616 1,378 2,154 1,974 1,505 1,701 1,893 2,154 1,783 1,736 17 U.S. Treasury bills and certificates6 197 364 1,730 1,269 1,032 1,246 1,530 1,730 1,328 1,317 18 Other negotiable and readily transferable instruments 1,417 1,014 424 705 473 455 363 424 455 417 19 Other 2 0 0 0 0 0 0 0 0 2 20 Official institutions9 113,481 119,303 130,903 136,648 129,519 135,933 135,640 130,903 133,827 136,804 21 Banks' own liabilities 31,108 34,910 34,226 43,860 34,603 37,559 38,960 34,226 37,604 38,187 22 Demand deposits 2,196 1,924 2,642 1,683 1,645 1,307 1,621 2,642 1,480 1,297 23 Time deposits 10,495 14,359 16,324 15,465 13,951 14,544 13,145 16,324 16,203 14,444 24 Other. 18,417 18,628 15,260 26,712 19,007 21,708 24,194 15,260 19,921 22,446 25 Banks' custody liabilities5 82,373 84,393 96,677 92,788 94,916 98,374 96,680 96,677 96,223 98,617 26 U.S. Treasury bills and certificates6 76,985 79,424 92,692 88,596 90,394 94,428 92,855 92,692 92,711 94,731 27 Other negotiable and readily transferable instruments 5,028 4,766 3,879 4,021 4,102 3,811 3,611 3,879 3,424 3,699 28 Other 361 203 106 171 420 135 214 106 88 187 29 Banks10 515,275 540,805 520,138 501,929 511,935 515,954 521,517 520,138 515,054 516,343 30 Banks' own liabilities 454,273 458,470 457,566 431,124 442,303 447,730 455,881 457,566 451,178 453,170 31 Unaffiliated foreign banks 135,409 136,802 129,856 113,669 122,322 127,610 131,879 129,856 120,435 120,173 32 Demand deposits 10,279 10,053 8,630 8,254 8,990 8,164 11,396 8,630 8,807 8,369 33 Time deposits2 90,557 88,541 83,088 70,595 74,589 78,181 80,199 83,088 73,079 73,786 34 Other. 34,573 38,208 38,138 34,820 38,743 41,265 40,284 38,138 38,549 38,018 35 Own foreign offices4 318,864 321,667 327,710 317,455 319,981 320,120 324,002 327,710 330,743 332,997 36 Banks' custody liabilities5 61,002 82,335 62,572 70,805 69,632 68,224 65,636 62,572 63,876 63,173 37 U.S. Treasury bills and certificates6 9,367 10,669 7,471 8,242 8,161 8,363 7,855 7,471 7,693 7,700 38 Other negotiable and readily transferable instruments 5,124 5,341 5,694 5,309 5,816 6,041 5,852 5,694 5,782 5,980 39 Other 46,510 66,325 49,407 57,254 55,655 53,820 51,929 49,407 50,401 49,493 40 Other foreigners 103,228 93,608 94,121 89,903 90,760 90,661 92,290 94,121 91,917 90,259 41 Banks' own liabilities 88,839 79,309 74,921 74,852 75,447 74,131 73,956 74,921 74,284 73,113 42 Demand deposits 9,460 9,711 9,004 8,460 9,218 8,138 8,589 9,004 8,983 9,201 43 Time deposits2 66,801 64,067 57,694 59,526 59,364 59,478 58,578 57,694 56,097 54,260 44 Other3 12,577 5,530 8,223 6,866 6,865 6,515 6,789 8,223 9,204 9,652 45 Banks' custody liabilities5 14,389 14,299 19,200 15,051 15,313 16,530 18,334 19,200 17,633 17,146 46 U.S. Treasury bills and certificates6 4,551 6,339 8,841 7,218 7,432 8,243 8,698 8,841 8,248 8,551 47 Other negotiable and readily transferable instruments 7,958 6,457 8,667 6,440 6,400 6,740 7,380 8,667 8,026 7,019 48 Other 1,880 1,503 1,692 1,393 1,481 1,547 2,256 1,692 1,359 1,576 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 7,203 7,073 7,456 7,062 7,542 7,596 7,137 7,456 7,835 8,048 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 11999911 Aug. Sept.r Oct. Nov. Dec. Jan.' Feb." 1 736,878 759,634 753,759r 735,425r 739,374 750,213r 758,168' 753,759' 750,593 753,961 2 Foreign countries 731,984 753,716 745,162' 728,480' 732,214 742,548' 749,447' 745,162' 740,798 743,406 3 Europe 237,501 254,452 249,001r 234,979r 237,068 246,935r 251,443' 249,001' 244,603 245,698 4 Austria 1,233 1,229 l,193r %1 1,109 1,232 1,313 1,193' 1,041 1,030 5 Belgium-Luxembourg 10,648 12,382 13,337r 11,168 13,992 13,659' 14,600 13,337' 13,350 15,185 6 Denmark 1,415 1,399 937 1,065 1,038 912 1,143 937 991 997 7 Finland 570 602 1,341 1,170 618 938 1,080 1,341 893 623 8 26,903 30,946 31,808 26,572r 27,467 30,491r 31,095 31,808 29,044 26,450 9 Germany 7,578 7,485 8,620' 7,038r 7,500 7,891 8,032 8,620' 8,048 9,098 10 Greece 1,028 934 765' 851 944 840 890 765' 873 897 11 Italy 16,169 17,735 13,541r 12,507 12,507 12,274 13,288 13,541' 10,798 9,554 17 Netherlands 6,613 5,350 7,161r 5,651 6,311 6,546 6,124 7,161' 7,%2 7,322 13 Norway 2,401 2,357 1,866 l,248r 1,459 l,173r 1,452 1,866 1,912 1,388 14 Portugal 2,418 2,958 2,184 2,313 2,391 2,431 2,223 2,184 1,114 2,540 15 Spain 4,364 7,544 11,391 10,3% 10,834 12,279*" 11,148 11,391 9,371 10,653 16 Sweden 1,491 1,837 2,222 1,424 1,435 1,217 1,105 2,222 1,887 2,544 17 Switzerland 34,4% 36,690 37,236r 35,%7 38,343 36,733 36,711 37,236' 35,867 34,945 18 Turkey 1,818 1,169 1,598 1,780 1,538 1,493 1,836' 1,598 1,476 1,681 19 United Kingdom 102,362 109,555 100,247r 95,358r 95,612 99,466r 99,844r 100,247' 102,364 102,115 70 Yugoslavia 1,474 928 622 955 854 807 544 622 493 529 71 Other Western Europe" 13,563 11,689 9,224r 15,176 9,670 12,964 15,357' 9,224' 13,555 13,747 77 U.S.S.R 350 119 241 136 117 178 236 241 169 246 23 Other Eastern Europe 608 1,545 3,467r 3,243 3,329 3,411 3,422 3,467' 3,395 4,154 24 Canada 18,865 20,349 21,563 23,919 24,039 24,685 23,131 21,563 18,646 20,437 75 Latin America and Caribbean 311,028 332,997 343,705' 339,139r 342,851 340,473r 345,107' 343,705' 348,561 347,674 76 Argentina 7,304 7,365 7,758 6,978 6,869 7,190 7,452 7,758 7,901 7,883 77 Bahamas 99,341 107,386 99,727r 93,459' 96,141 99,858 100,339 99,727' 100,557 99,083 78 Bermuda 2,884 2,822 3,178 3,520 3,120 3,191 3,295 3,178 3,658 3,478 79 Brazil 6,351 5,834 5,942 6,074 6,069 5,998 5,811 5,942 5,785 5,760 30 British West Indies 138,309 147,321 162,422r 164,512r 165,769 160,488r 163,419r 162,422' 165,012 166,832 31 Chile 3,212 3,145 3,284 3,162 3,090 3,348 3,388 3,284 3,322 3,457 3? Colombia 4,653 4,492 4,662 4,735 4,642 4,823 4,797 4,662 4,627 4,714 33 Cuba 10 11 2 9 8 4 12 2 6 5 34 Ecuador 1,391 1,379 1,232 1,236 1,226 1,237 1,236 1,232 1,250 1,219 35 Guatemala 1,312 1,541 1,594 1,613 1,585 1,541 1,589 1,594 1,554 1,549 36 Jamaica 209 257 231 235 213 202 201 231 234 227 37 Mexico 15,423 16,650 19,957r 20,33lr 20,958 19,958r 20,499' 19,957' 20,373 20,322 38 Netherlands Antilles 6,310 7,357 5,592r 5,732 5,565 5,499 5,924 5,592' 6,272 6,262 39 Panama 4,362 4,574 4,695 4,748 4,374 4,450 4,563 4,695 4,348 4,403 40 Peru 1,984 1,294 1,249 1,287 1,305 1,234 1,240 1,249 1,233 1,221 41 Uruguay 2,284 2,520 2,111 2,471r 2,539 2,442 2,373 2,111 2,313 2,157 47 Venezuela 9,482 12,271 13,181' 12,249 12,348 12,237 12,171 13,181' 13,530 12,401 43 Other 6,206 6,779 6,888r 6,788 7,030 6,773 6,798 6,888' 6,586 6,701 44 156,201 136,844 120,504r 122,422r 119,608 120,434r 120,0^ 120,504' 119,105 120,449 China 45 1,773 2,421 2,619 2,247 2,198 2,494 2,783 2,619 2,739 2,607 46 Taiwan 19,588 11,246 11,495r 12,26c 10,100 12,443 11,675 11,495' 10,951 10,616 47 12,416 12,754 14,374r 14,206 14,476 13,941' 13,795' 14,374' 15,162 14,848 48 India 780 1,233 2,418 2,373 2,487 2,504 2,613 2,418 2,297 2,336 49 1,281 1,238 1,463r 1,239r 1,078 1,230 1,412' 1,463' 1,037 1,2% 50 Israel 1,243 2,767 2,015 2,697 2,847 2,115 2,108 2,015 2,193 2,137 51 Japan 81,184 67,076 47,053r 48,876r 48,091 47,068 46,004 47,053' 45,992 45,107 5? 3,215 2,287 2,538 2,272 2,131 2,169 2,555 2,538 2,442 2,754 53 Philippines 1,766 1,585 2,449 1,465 1,651 1,926 2,139 2,449 2,256 2,469 54 Thailand 2,093 1,443 2,252 2,650 3,348 3,113 3,581 2,252 2,933 3,224 55 Middle-East oil-exporting countries13 13,370 15,829 15,752r 14,834r 15,309 15,529' 16,301' 15,752' 15,901 18,410 56 Other 17,491 16,%5 16,076r 17,303r 15,892 15,902r 15,053 16,076' 15,202 14,645 57 3,824 4,630 4,822r 4,017 4,483 4,558 4,465 4,822' 5,042 4,895 58 Egypt 686 1,425 l,621r 957 1,125 1,241 1,060 1,621' 1,620 1,632 59 Morocco 78 104 79 91 82 78 93 79 86 82 60 South Africa 206 228 228 137 242 207 173 228 201 199 61 Zaire 86 53 31 58 37 42 32 31 28 30 62 Oil-exporting countries14 1,121 1,110 1,082 992 1,145 1,182 1,280 1,082 1,204 1,190 63 Other 1,648 1,710 l,781r 1,782 1,852 1,808 1,827 1,781' 1,903 1,762 64 Other countries 4,564 4,444 5,567r 4,004 4,165 5,463 5,282 5,567' 4,841 4,253 65 Australia 3,867 3,807 4,464 3,149 3,231 4,445 4,116 4,464 3,619 3,065 66 All other 697 637 l,103r 855 934 1,018 1,166 1,103' 1,222 1,188 67 Nonmonetary international and regional organizations 4,894 5,918 8,597' 6,945 7,160 7,665r 8,721' 8,597' 9,795 10,555 68 International 3,947 4,390 6,ior 4,371 5,122 5,4 llr e.iso1 6,101' 7,339 8,232 69 Latin American regional 684 1,048 1,181 1,531 1,094 1,242 1,366 1,181 1,422 1,500 70 Other regional16 263 479 1,315 1,043 944 1,012 1,175 1,315 1,034 823 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 • June 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 1991r 1992 AArreeaa aanndd ccoouunnttrryy 11998899 11999900 11999911rr Aug. Sept. Oct. Nov. Dec. Jan.r Feb.? 1 Total 534,492 511,543 513,916 502,982 499,931 511,082 514,637 513,916 508,108 508,357 2 Foreign countries 530,630 506,750 507,724 500,502 497,224 509,301 511,347 507,724 503,913 501,817 3 Europe 119,025 113,093 114,252 98,921 103,340 103,710 107,754 114,252 112,628 110,7% 4 Austria 415 362 327 185 297 374 325 327 211 447 5 Belgium-Luxembourg 6,478 5,473 6,158 6,534 7,175 7,677 6,962 6,158 6,726 7,422 6 Denmark 582 497 686 945 670 624 671 686 792 709 7 Finland 1,027 1,047 1,912 771 908 1,195 1,378 1,912 1,854 1,586 8 France 16,146 14,468 15,112 13,827 14,504 13,085 14,813 15,112 15,1% 13,742 9 Germany 2,865 3,343 3,339 3,112 2,678 2,077 2,839 3,339 3,295 3,405 10 Greece 788 727 553 495 473 487 555 553 550 562 11 Italy 6,662 6,052 8,242 5,931 6,541 6,370 6,362 8,242 8,000 7,292 12 Netherlands 1,904 1,761 2,539 2,095 1,949 2,169 2,220 2,539 2,664 2,454 13 Norway 609 782 669 599 679 682 776 669 801 665 14 Portugal 376 292 344 308 266 301 358 344 360 350 15 Spain 1,930 2,668 1,844 1,995 2,337 2,410 2,480 1,844 2,487 2,120 16 Sweden 1,773 2,094 2,315 1,633 1,896 1,842 2,347 2,315 2,751 2,923 17 Switzerland 6,141 4,202 4,540 3,609 4,048 4,195 4,469 4,540 4,497 3,921 18 Turkey 1,071 1,405 1,063 1,407 1,385 1,195 1,151 1,063 1,065 1,078 19 United Kingdom 65,527 65,151 60,429 51,971 54,243 55,436 55,917 60,429 56,582 57,086 20 Yugoslavia 1,329 1,142 824 820 802 803 848 824 822 810 21 Other Western Europe2 1,302 597 789 1,024 773 714 1,001 789 1,152 1,144 22 U.S.S.R 1,179 530 1,970 1,015 1,157 1,358 1,689 1,970 2,331 2,491 23 Other Eastern Europe3 921 499 597 645 559 716 593 597 492 589 24 Canada 15,451 16,091 14,995 14,509 14,750 16,099 15,845 14,995 14,761 15,712 75 Latin America and Caribbean 230,438 231,506 245,997 249,811 250,969 255,126 252,834 245,997 249,524 245,451 26 Argentina 9,270 6,967 5,869 5,749 5,749 5,735 5,778 5,869 5,823 5,998 77 Bahamas 77,921 76,525 87,142 78,804 80,643 85,959 87,160 87,142 89,225 84,110 78 Bermuda 1,315 4,056 2,185 11,773 6,854 4,305 4,102 2,185 3,535 4,444 29 Brazil 23,749 17,995 11,845 12,336 11,885 11,499 11,687 11,845 12,421 12,748 30 British West Indies 68,749 88,565 107,864 111,240 112,790 116,429 111,999 107,864 106,945 106,444 31 Chile 4,353 3,271 2,805 2,779 2,732 2,721 2,833 2,805 2,817 2,745 32 Colombia 2,784 2,587 2,425 2,368 2,432 2,542 2,574 2,425 2,374 2,330 33 Cuba 1 0 0 0 0 0 0 0 0 0 34 Ecuador 1,688 1,387 1,053 1,238 1,115 1,095 1,090 1,053 1,044 1,063 35 Guatemala 197 191 228 182 185 191 195 228 214 230 36 Jamaica 297 238 158 150 150 162 161 158 157 158 37 Mexico 23,376 14,851 16,606 15,282 16,441 16,874 17,401 16,606 17,058 17,361 38 Netherlands Antilles 1,921 7,998 1,126 1,540 3,619 1,247 1,122 1,126 1,112 898 39 Panama 1,740 1,471 1,563 1,477 1,478 1,546 1,641 1,563 1,651 1,662 40 Peru 771 663 739 728 712 722 724 739 735 737 41 Uruguay 929 786 599 571 577 555 550 599 548 604 42 Venezuela 9,652 2,571 2,527 2,395 2,463 2,406 2,634 2,527 2,610 2,611 43 Other 1,726 1,384 1,263 1,199 1,144 1,138 1,183 1,263 1,255 1,308 44 157,474 138,722 125,246 129,777 120,533 126,978 127,191 125,246 119,644 122,329 China 45 Mainland 634 620 747 575 621 597 698 747 813 704 46 Taiwan 2,776 1,952 2,089 1,522 1,460 1,578 1,584 2,089 1,919 1,881 47 Hong Kong 11,128 10,648 9,723 9,154 9,567 10,204 10,172 9,723 9,859 9,711 48 India 621 655 441 435 459 482 450 441 445 418 49 Indonesia 651 933 952 876 869 841 872 952 1,012 1,043 50 Israel 813 71i 855 919 945 994 907 855 873 943 51 Japan 111,300 90,699 84,770 90,513 80,532 84,767 85,504 84,770 80,492 80,190 57 Korea 5,323 5,766 6,029 5,404 5,164 5,363 5,797 6,029 5,683 6,272 53 Philippines 1,344 1,247 1,910 1,682 1,633 1,916 1,971 1,910 1,849 1,789 54 Thailand 1,140 1,573 1,650 1,875 1,939 1,831 1,803 1,650 1,574 1,542 55 Middle East oil-exporting countries4 10,149 10,749 8,284 9,335 10,433 9,973 9,957 8,284 8,073 10,878 56 Other 11,594 13,106 7,796 7,487 6,911 8,432 7,476 7,796 7,052 6,958 57 Africa 5,890 5,445 4,928 5,344 5,281 5,273 5,242 4,928 4,874 4,801 58 Egypt 502 380 294 315 320 302 351 294 255 223 59 Morocco 559 513 575 576 579 589 583 575 591 550 60 South Africa 1,628 1,525 1,235 1,610 1,498 1,495 1,493 1,235 1,217 1,189 61 Zaire 16 16 4 9 8 9 7 4 4 4 62 Oil-exporting countries5 1,648 1,486 1,298 1,273 1,270 1,260 1,320 1,298 1,116 1,209 63 Other 1,537 1,525 1,522 1,561 1,606 1,618 1,488 1,522 1,691 1,626 64 Other countries 2,354 1,892 2,306 2,140 2,351 2,115 2,481 2,306 2,482 2,728 65 Australia 1,781 1,413 1,665 1,464 1,526 1,503 1,718 1,665 1,473 1,491 66 Allother 573 479 641 676 825 612 763 641 1,009 1,237 67 Nonmonetary international and regional organizations6 3,862 4,793 6,192 2,480 2,707 1,781 3,290 6,192 4,195 6,540 1. Reporting banks include all kinds of depository institutions besides commer- 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and cial banxs, 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 1991r 1992 TTyyppee ooff ccllaaiimm 11998899 11999900 11999911rr Aug. Sept. Oct. Nov. Dec. Jan.r Feb." 555555599999993333333,,,,,,,000000088888887777777 555555577777779999999,,,,,,,000000044444444444444 555555588888880000000,,,,,,,000000011111113333333 555555566666667777777,,,,,,,333333300000007777777 555555588888880000000,,,,,,,000000011111113333333 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 555555533333334444444,,,,,,,444444499999992222222 555555511111111111111,,,,,,,555555544444443333333 555555511111113333333,,,,,,,999999911111116666666 502,982 444444499999999999999,,,,,,,999999933333331111111 511,082 514,637 555555511111113333333,,,,,,,999999911111116666666 508,108 508,357 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 66666660000000,,,,,,,555555511111111111111 44444441111111,,,,,,,999999900000000000000 33333336666666,,,,,,,777777700000005555555 35,699 33333335555555,,,,,,,666666688888880000000 35,261 36,323 33333336666666,,,,,,,777777700000005555555 34,894 38,681 44 OOwwnn ffoorreeiiggnn ooffffiicceess22 222222299999996666666,,,,,,,000000011111111111111 333333300000004444444,,,,,,,333333311111115555555 333333311111118888888,,,,,,,888888844444449999999 302,086 333333300000004444444,,,,,,,555555511111118888888 313,021 313,783 333333311111118888888,,,,,,,888888844444449999999 307,850 305,937 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111133333334444444,,,,,,,888888888888885555555 111111111111117777777,,,,,,,222222277777772222222 111111111111116666666,,,,,,,555555533333334444444 116,449 111111111111113333333,,,,,,,888888877777772222222 119,829 120,218 111111111111116666666,,,,,,,555555533333334444444 121,198 118,595 66 DDeeppoossiittss 77777778888888,,,,,,,111111188888885555555 66666665555555,,,,,,,222222255555553333333 66666669999999,,,,,,,222222233333337777777 70,874 66666668888888,,,,,,,444444488888882222222 72,534 71,610 66666669999999,,,,,,,222222233333337777777 71,174 70,646 77 OOtthheerr 55555556666666,,,,,,,777777700000000000000 55555552222222,,,,,,,000000011111119999999 44444447777777,,,,,,,222222299999997777777 45,575 44444445555555,,,,,,,333333399999990000000 47,295 48,608 44444447777777,,,,,,,222222299999997777777 50,024 47,949 88 AAllll ootthheerr ffoorreeiiggnneerrss 44444443333333,,,,,,,000000088888885555555 44444448888888,,,,,,,000000055555556666666 44444441111111,,,,,,,888888822222228888888 48,748 44444445555555,,,,,,,888888866666661111111 42,971 44,313 44444441111111,,,,,,,888888822222228888888 44,166 45,144 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss33...... 55555558888888,,,,,,,555555599999994444444 66666667777777,,,,,,,555555500000001111111 66666666666666,,,,,,,000000099999997777777 66666667777777,,,,,,,333333377777776666666 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,,,,,,,888888811111110000000 11111112222222,,,,,,,999999933333339999999 13 MEMO: Customer liability on 11111112222222,,,,,,,888888899999999999999 11111113333333,,,,,,,666666622222228888888 6666666,,,,,,,777777744444443333333 8888888,,,,,,,777777733333339999999 6666666,,,,,,,777777744444443333333 1144 DDoollllaarr ddeeppoossiittss iinn bbaannkkss aabbrrooaadd,, rreeppoorrtteedd bbyy nnoonnbbaannkkiinngg bbuussiinneessss eenntteerrpprriisseess iinn tthhee UUnniitteedd SSttaatteess33 45,767r 44,574r 38,815 41,920 38,213 39,822 40,589 38,815 37,285 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 1991r Maturity, by borrower and area 1989 1990 June Sept. 1 Total 233,184 238,123 206,903 199,216 199,517 195,164 By borrower 2 Maturity of one year or less ... 172,634 178,346 165,985 158,660 160,346 159,829 3 Foreign public borrowers 26,562 23,916 19,305 21,794 19,286 17,461 4 All other foreigners 146,071 154,430 146,680 136,866 141,060 142,368 5 Maturity of more than one year 60,550 59,776 40,918 40,555 39,171 35,335 6 Foreign public borrowers 35,291 36,014 22,269 22,417 20,820 17,925 7 All other foreigners 25,259 23,762 18,649 18,138 18,352 17,410 By area Maturity of one year or less 8 Europe 55,909 53,913 49,184 49,840 50,368 51,207 9 Canada 6,282 5,910 5,450 5,939 7,309 5,682 10 Latin America and Caribbean 57,991 53,003 49,782 42,670 41,127 47,280 11 Asia 46,224 57,755 53,258 53,993 53,150 49,462 12 Africa 3,337 3,225 3,040 3,008 2,937 2,815 13 All other3 2,891 4,541 5,272 3,212 5.455 3,383 Maturity of more than one year2 14 Europe 4,666 4,121 3,859 4,128 3,832 3,717 15 Canada 1,922 2,353 3,290 3,390 3,823 3,676 16 Latin America and Caribbean 47,547 45,816 25,774 24,962 23,220 19,232 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 2,393 19 All other3 501 684 456 237 195 222 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 • June 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 198/ 1980 Dec. Mar. June Sept. Dec. Mar. June Sept. Dec." 1 Total 382.4 346.3 338.8 333.9 321.7 331.5 317.8 325.6r 321.0r 336.8r 341.6r 2 G-10 countries and Switzerland 159.7 152.7 152.9 146.6 139.3 143.6 132.1 129.9 130.2r 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 5.9 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 66.4r 65. 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 16.2r 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 50.2r 48.5r 52.7r 52.0 57 Bahamas 17.3 11.0 5.5 9.2 8.5 8.9 2.8 8.4r 6.8r 6.8r 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. r 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 P L a e n b a a m no a n 4 3.7 J 2.5j 1.4 J 1.3j 1.4 1 . . 5 1 1 . . 4 1 I 1.4 1.3| 1.3 1.3 63 Hong Kong 1L2 9^6 9.7 9I8 io!o 8.7 7.7 11.6 12^4 12! 1 12^2 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 40.0r 44.7r 48. r 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 11998888 11998899rr 11999900 Sept. Dec. Mar. June Sept. Dec.p 1 32,952 38,764 43,417 45,614r 43,417r 40,982r 39,794r 40,653r 40,036 7 Payable in dollars 27,335 33,973 38,535 40,034 38,535r 36,415r 35,317r 36,174r 35,277 3 Payable in foreign currencies 5,617 4,791 4,882 5,580r 4,882r 4,566r 4,477r 4,479r 4,759 By type 4 Financial liabilities 14,507 17,879 18,467 20,347r 18,467r 17,557r 17,280r 18,175r 17,903 5 Payable in dollars 10,608 14,035 14,737 16,059 14,737r 14,188r 13,928r 14,686r 14,365 6 Payable in foreign currencies 3,900 3,844 3,730 4,288r 3,730r 3,369r 3,352r 3,489r 3,538 7 Commercial liabilities 18,445 20,885 24,949 25,267 24,949 23,424r 22,515r 22,m1 22,133 8 Trade payables 6,505 8,070 10,494 10,960 10,494 8,842r 8,699r 9,039r 9,018 9 Advance receipts and other liabilities 11,940 12,815 14,456 14,306 14,456 14,583r 13,815r 13,439 13,115 10 Payable in dollars 16,727 19,938 23,798 23,974 23,798 22,227r 21,390" 21,488r 20,912 11 Payable in foreign currencies 1,717 947 1,152 1,292 1,152 1,197 1,125r 990r 1,221 By area or country Financial liabilities 17 9,962 11,660 9,866 11,29? 9,866r 9,219r 9,318r 99,,883355rr 99,,115533 13 Belgium-Luxembourg 289 340 344 350 344 285 297 347 362 14 359 258 700 463 700r 632r 556r 416 297 15 Germany 699 464 622 606 622 561 659" 654 659 16 Netherlands 880 941 990 942 990 945 917 943 932 17 Switzerland 1,033 541 576 628 576 577 535 510 361 18 United Kingdom 6,533 8,818 6,024 7,679r 6,024r 5,579r 5,731r 6,397r 5,912 19 Canada 388 610 229 309 229r 278r 293r 305 268 70 Latin America and Caribbean 839 1,357 3,400 3,560 3,400 3,636 3,308 3,472 3,814 71 Bahamas 184 157 371 395 371 392 375 314 512 72 Bermuda 0 17 0 0 0 0 12 0 0 73 Brazil 0 0 0 0 0 0 0 1 1 74 British West Indies 645 724 2,407 2,548 2,407 2,674 2,319 2,555 2,697 75 1 6 5 4 5 6 6 6 8 26 Venezuela 0 0 4 0 4 4 4 4 4 77 3,312 4,151 4,562 4,697r 4,562r 4,420r 4,350" 4,559r 4,610 78 2,563 3,299 3,360 3,562r 3,360r 3,347r 3,297r 3,530* 3,533 29 Middle East oil-exporting countries 3 2 5 4 5 1 4 19 13 30 Africa 2 2 2 2 2 2 9 3 6 31 Oil-exporting countries3 0 0 0 0 0 0 7 2 4 32 Allother4 4 100 409 479 409 2 2 1 52 Commercial liabilities 33 Europe 7,319 9,071 10,310 10,039 10,310 9,826r 88,,883355rr 88,,997766rr 88,,772266 34 Belgium-Luxembourg 158 175 275 245 275 263 254 229 247 35 455 877 1,218 1,270 1,218 l,214r 1,246 999 880 36 Germany 1,699 1,392 1,270 1,051 1,270 1,389 1,044 914r 943 37 Netherlands 587 710 844 699 844 730r 745r 750 704 38 Switzerland 417 693 775 746 775 661 586 490 471 39 United Kingdom 2,079 2,620 2,792 2,839 2,792 2,813r 2,328r 3,071r 3,168 40 Canada 1,217 1,124 1,251 1,263 1,251 1,231 1,186 1,018 992 41 Latin America and Caribbean 1,090 1,224 1,671 1,690 1,671 1,621 l,646r 1,512 1,351 47 49 41 12 18 12 14 6 14 3 43 Bermuda 286 308 538 371 538 495 505 450 310 44 Brazil 95 100 145 129 145 218 180 209 217 45 British West Indies 34 27 30 42 30 36 50 46 107 46 217 323 475 592 475 346 364 290 302 47 114 164 130 165 130 126 121 101 93 48 6,915 7,550 9,471 9,533 9,471 8,623r 8,818r 8,869 9,233 49 Japan 3,094 2,914 3,639 3,356 3,639 3,412r 3,394r 3,317 3,610 50 Middle East oil-exporting countries2,5 1,385 1,632 2,016 2,728 2,016 l,568r 1,699 1,808 1,500 51 576 886 841 1,334 841 655 594 835 761 52 Oil-exporting countries 202 339 422 610 422 225 224 356 357 53 All other4 1,328 1,030 1,406 1,408 1,406 l,468r 1,436 1,268 1,070 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. 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 • June 1992 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1990 1991r TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998888 11998899rr 11999900 Sept. Dec. Mar. June Sept. Dec.p 1 Total 33,805 33,173 35,008 3i,387r 35,008 35,213 36,837 37,898 42,101 2 Payable in dollars 31,425 30,773 32,499 29,902r 32,499 32,945 34,779 35,585 39,710 3 Payable in foreign currencies 2,381 2,400 2,509 2,485r 2,509 2,268 2,058 2,313 2,391 By type 4 Financial claims 21,640 19,297 19,609 17,865r 19,609 19,498 20,741 22,221 24,203 5 Deposits 15,643 12,353 13,495 ll,916r 13,495 12,907 12,417 16,055 16,801 6 Payable in dollars 14,544 11,364 12,400 10,640"^ 12,400 11,901 11,644 15,070 15,994 7 Payable in foreign currencies 1,099 989 1,095 l,276r 1,095 1,006 773 985 807 8 Other financial claims 5,997 6,944 6,114 5,949 6,114 6,590 8,325 6,166 7,402 9 Payable in dollars 5,220 6,190 5,247 5,2% 5,247 5,894 7,637 5,493 6,629 10 Payable in foreign currencies 777 754 866 652 866 6% 688 673 773 11 Commercial claims 12,166 13,876 15,400 14,522r 15,400 15,715 16,095 15,677 17,898 12 Trade receivables 11,091 12,253 13,521 12,744r 13,521 13,649 13,912 13,235 15,145 13 Advance payments and other claims 1,075 1,624 1,878 1,778 1,878 2,066 2,183 2,442 2,753 14 Payable in dollars 11,660 13,219 14,852 13,966r 14,852 15,150 15,498 15,022 17,087 15 Payable in foreign currencies 505 657 548 556 548 565 597 655 811 By area or country Financial claims 16 Europe 10,278 8,463 9,505 9,013r 9,505 10,588 11,821 13,029 13,281 17 Belgium-Luxembourg 18 28 76 27 76 85 74 76 13 18 France 203 153 358 145 358 193 255 245 252 19 Germany 120 152 367 142r 367 312 298 434 337 20 Netherlands 348 238 265 264r 265 380 429 420 386 21 Switzerland 217 153 357 228r 357 422 433 580 589 22 United Kingdom 9,039 7,4% 7,838 7,980r 7,838 8,981 10,184 10,905 11,075 23 Canada 2,325 1,904 2,904 2,006r 2,904 1,850 1,986 2,084 2,509 24 Latin America and Caribbean 8,160 8,020 6,0% 6,107 6,0% 6,161 5,849 6,118 7,422 25 Bahamas 1,846 1,890 1,594 1,443 1,594 1,847 1,031 1,3% 1,717 26 Bermuda 19 7 3 4 3 6 4 19 8 27 Brazil 47 224 68 70 68 68 127 124 115 28 British West Indies 5,763 5,486 4,026 4,191 4,026 3,810 4,307 4,209 5,188 29 Mexico 151 94 177 158 177 179 161 173 210 30 Venezuela 21 20 25 23 25 28 29 32 40 31 Asia 623 590 860 531 860 568 747 637 624 32 Japan 354 213 523 207 523 246 398 279 343 33 Middle East oil-exporting countries 5 8 8 9 8 11 4 3 5 34 Africa 106 140 37 49 37 62 64 61 57 35 Oil-exporting countries 10 12 0 7 0 3 1 1 1 36 All other4 148 180 206 158 206 268 275 292 310 Commercial claims 37 Europe 5,181 6,209 7,038 6,497r 7,038 7,041 7,434 6,863 8,389 38 Belgium-Luxembourg 189 242 212 188 212 226 220 186 192 39 France 672 964 1,240 1,206 1,240 1,273 1,388 1,328 1,537 40 Germany 669 6% 806 642r 806 870 953 852 928 41 Netherlands 212 479 555 491 555 604 707 641 637 42 Switzerland 344 313 301 300 301 324 2% 259 287 43 United Kingdom 1,324 1,575 1,774 1,673 1,774 1,636 1,813 1,803 2,058 44 Canada 983 1,091 1,073 l,152r 1,073 1,211 1,240 1,231 1,591 45 Latin America and Caribbean 2,241 2,184 2,371 2,408r 2,371 2,314 2,418 2,489 2,577 46 Bahamas 36 58 14 25 14 15 16 8 11 47 Bermuda 230 323 246 340 246 231 245 255 263 48 Brazil 299 297 324 252r 324 309 297 384 388 49 British West Indies 22 36 40 35 40 49 43 37 41 50 Mexico 461 508 661 652r 661 653 711 740 827 51 Venezuela 227 147 192 224 192 181 195 1% 201 52 Asia 2,993 3,570 4,064 3,659r 4,064 4,282 4,123 4,209 4,461 53 Japan 946 1,199 1,399 1,223r 1,399 1,756 1,582 1,742 1,786 54 Middle East oil-exporting countries2 453 518 460 408r 460 497 500 495 639 55 Africa 435 429 488 372r 488 394 428 431 417 56 Oil-exporting countries3 122 108 67 72 67 68 63 80 95 57 All other4 333 393 366 434r 366 473 452 454 463 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.- Aug. Sept. Oct.r Nov/ Dec.r Jan.r Feb.p Feb. U.S. corporate securities STOCKS 1 Foreign purchases 173,293 210,782 44,622 17,934 12,919 17,201 20,587 14,729 23,305 21,317 2 Foreign sales 188,419 199,598 46,998 16,192 13,659 16,791 19,594 17,446 25,904 21,094 3 Net purchases, or sales (-) -15,126 11,183 -2,376 1,742 -740 410 993 -2,717 -2,599 223 4 Foreign countries -15,197 10,615 -2,256 1,606 -850 365 956 -2,700 -2,480 224 5 -8,479 182 -1,423 753 -567 -452 -238 -1,883 -1,318 -105 6 France -1,234 18 -252 39 -95 -21 -50 -125 -28 -224 7 Germany -367 -63 -129 21 62 12 22 44 -159 30 8 Netherlands -397 -228 -70 -209 38 6 -42 -52 44 -114 9 Switzerland -2,866 -139 17 96 -48 -93 -508 -7 -287 304 10 United Kingdom -2,980 -222 -1,186 831 -501 -216 254 -1,637 -882 -304 11 886 3,809 482 439 16 385 694 131 260 222 1? Latin America and Caribbean -1,330 2,177 1,384 315 25 366 -197 -280 1,025 359 13 Middle East1 -2,435 -126 -171 67 -402 -6 39 -35 -272 101 14 Other Asia -3,477 4,263 -2,607 -33 210 267 735 -665 -2,211 -396 15 Japan -2,891 1,181 -2,809 -96 135 156 158 -429 -2,194 -615 16 -63 153 28 4 -7 20 14 7 13 15 17 Other countries -298 158 51 61 -125 -215 -91 25 23 28 18 Nonmonetary international and regional organizations 71 568 -120 136 110 45 3377 --1177 --111199 --11 BONDS2 19 Foreign purchases 118,764 152,815 34,187 14,989 14,492 12,844 16,035 15,092 16,334 1177,,885533 20 Foreign sales 102,047 125,146r 28,689 10,817* 12,315 10,709 13,051 12,348 14,177 14,512 21 Net purchases, or sales (-) 16,717 27,669* 5,498 4,172* 2,177 2,135 2,984 2,744 2,157 3,341 22 Foreign countries 17,187 27,800* 5,458 4,269* 2,216 2,198 2,883 2,701 2,124 3,334 73 10,079 13,651* 3,820 1,722* -111 1,722 1,284 1,084 1,404 2,416 74 France 373 854 56 -26 93 -25 110 75 -2 58 75 Germany -377 1,577 871 106 156 213 274 113 594 277 76 Netherlands 172 482 -104 47 -18 44 91 13 -113 9 77 Switzerland 284 572 189 116 -52 -64 -449 73 -67 256 78 United Kingdom 10,383 9,239* 2,745 1,400* 384 1,878 714 184 919 1,826 79 1,906 1,340 -56 -40 -155 86 51 114 -153 97 30 Latin America and Caribbean 4,291 2,446r 1,273 172 130 -365 110 624 505 768 31 Middle East1 76 2,185 -146 449 350 182 313 253 -75 -71 37 Other Asia 1,083 8,237 453 2,015 2,027 526 1,164 543 352 101 33 727 5,730 136 1,818 1,149 237 874 149 257 -121 34 Africa 96 56 43 4 -2 12 13 1111 28 15 35 Other countries -344 -115* 71 -53 -23 35 -52 7722 63 8 36 Nonmonetary international and regional organizations -471 -131 40 -97 -39 -63 101 4433 3333 7 Foreign securities 37 Stocks, net purchases, or sales (-)3 -9,205 -31.446* -4,844 -3,527* -2,163* -2,381 -2,016 -1,716 -2,574 -2,270 38 Foreign purchases 122,641 119,853* 22,953 9,620* 9,940* 11,310 13,155 11,015 12,433 10,520 39 Foreign sales 131,846 151,299* 27,797 13,147* 12,103* 13,691 15,171 12,731 15,007 12,790 40 Bonds, net purchases, or sales (-) -22,412 -15,842* -1,102 -2,167* -1,064* -4,721 779 -1,839 -1,365 263 41 Foreign purchases 314,645 324,809* 67,795 22,197* 23,546* 33,240 29,938 26,296 35,494 32,301 42 Foreign sales 337,057 340,652* 68,897 24,364* 24,610* 37,961 29,159 28,135 36,859 32,038 43 Net purchases, or sales (-), of stocks and bonds -31,617 -47,288* -5,946 -5,694* -3,227* -7,102 -1,237 -3,555 -3,939 -2,007 44 Foreign countries -28,943 -47,054* -6,362 -5,799* -3,407* -6,766 -1,680 -3,925 -4,190 -2,172 45 -8,443 -34,377* -6,854 -4,773* -2,594* -5,700 -4,898 -4,326 -4,593 -2,261 46 -7,502 -7,636 249 -1,009 -352 -1,619 675 8 -910 1,159 47 Latin America and Caribbean -8,854 837* -119 108 454 546 991 -478 -819 700 48 -3,828 -7,113* 694 -306* -1,155* -198 1,505 316 2,183 -1,489 49 -137 -8 -15 -7 2 1 -41 159 -5 -10 50 Other countries -180 1,243* -317 188 238 204 88 396 -46 -271 51 Nonmonetary international and regional organizations -2,673 -234* 416 105 180 -336 444433 337700 225511 116655 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 • June 1992 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1992 1991 1992 Country or area 1990 1991 J F a e n b .- . Aug. Sept. Oct. Nov. Dec. Jan.r Feb." Transactions, net purchases or sales (-) during period1 1 Estimated total2 18,927 22,342R 12,888 1,356 -3,862 414 5,446 4,483R 10,623 2,265 2 Foreign countries2 18,764 22,161r 13,490 722 -2,804 -171 5,352 3,774r 9,866 3,624 3 Europe2 18,455 9,507r 12,644 1,554 464 228 5,023 2,779r 5,324 7,320 4 Belgium-Luxembourg 10 523 855 71 -190 1 201 -21 559 296 5 Germany 5,880 -4,725 1,087 -360 195 326 707 -139 805 282 6 Netherlands 1,077 -3,735 -2,903 -372 -426 549 -25 -888 -1,936 -967 7 Sweden ... 1,152 -662 480 -239 3 46 -74 582 180 300 8 Switzerland2 112 1,005 -246 292 -184 195 1,105 -778 142 -388 9 United Kingdom -1,260 5,647r 8,883 388 -32 -311 212 2,349" 2,649 6,234 10 Other Western Europe 11,463 ll,440r 4,448 1,774 1,090 -578 2,910 l,664r 2,925 1,523 11 Eastern Europe 13 13 40 0 8 0 -13 10 0 40 12 Canada -4,627 -2,746 -588 -118 78 -838 -441 -1,841 964 -1,552 13 Latin America and Caribbean 14,734 11,539 -4,111 1,436 -1,076 -2,086 -3,842 1,075 -2,920 -1,191 14 Venezuela 33 10 435 -20 -2 20 7 122 266 169 15 Other Latin America and Caribbean 3,943 5,316 -801 -2,010 -1,883 -14 -525 -1,065 -357 -444 16 Netherlands Antilles 10,757 6,213 -3,745 3,466 809 -2,092 -3,324 2,018 -2,829 -916 17 Asia -10,952 3,471r 7,245 -2,115 -2,067 3,467 3,709 864r 7,675 -430 18 Japan -14,785 -4,034r -2,331 -364 -3,625 4,111 503 -l,332r -398 -1,933 19 Africa 313 689 307 27 10 39 -26 318 207 100 20 All other 842 -299 -2,007 -62 -213 -981 929 579 -1,384 -623 21 Nonmonetary international and regional organizations 163 181r -602 634 -1,058 585 94 709 757 -1,359 22 International 287 -355r -1,007 654 -1,211 287 95 786 197 -1,204 23 Latin American regional -2 -72 -7 -146 152 72 -133 -156 -58 51 MEMO 24 Foreign countries 18,764 22,161r 13,490 722 -2,804 -171 5,352 3,774r 9,866 3,624 25 Official institutions 23,218 5,200r 8,247 -458r 830 512 7,194 2,521r 8,361 -114 26 Other foreign2 -4,453 16,961r 5,243 1,180" -3,634 -683 -1,842 l,253r 1,505 3,738 Oil-exporting countries 27 Middle East^ -387 -6,822 2,302 -3,731 -795 313 96 -163 623 1,679 28 Africa4 0 239 48 0 0 0 0 219 48 0 1. Estimated official and private transactions in marketable U.S. Treasury 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and securities having an original maturity of more than one year. Data are based on United Arab Emirates (Trucial States). monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and 4. Comprises Algeria, Gabon, Libya, and Nigeria. notes held by official institutions of foreign countries. 2. Includes U.S. Treasury notes, denominated in foreign currencies, publicly issued to private foreign residents. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Interest and Exchange Rates A67 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per year Rate on Apr. 30, 1992 Rate on Apr. 30, 1992 Rate on Apr. 30, 1992 Country Country Country Percent e M ffe o c n t t i h v e Percent e M ffe o c n t t i h ve Percent e M ffe o c n t t i h ve Austria.. 8.0 Dec. 1991 Germany, Fed. Rep. of. 8.0 Dec. 1991 Norway 10.50 July 1990 C Be a l n g a iu d m a .. . 8 6. .5 8 5 D Ap ec r . . 1 19 9 9 9 1 2 J It a a p l a y n 1 3 2 . . 7 0 5 N Ap o r v . . 1 1 9 9 9 9 2 1 S U w n i i t t z e e d r l K an in d g dom2i 7.0 Aug. 1991 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr. 1 9.16 8.16 5.86 5.34 4.96 4.48 4.06 4.05 4.26 4.05 7 13.87 14.73 11.47 10.38 10.44 10.73 10.60 10.33 10.58 10.56 3 12.20 13.00 9.07 8.29 7.75 7.50 7.23 7.42 7.63 7.10 4 7.04 8.41 9.15 9.28 9.33 9.48 9.45 9.51 9.59 9.63 5 6.83 8.71 8.01 8.09 7.89 7.99 7.55 7.28 8.16 8.48 6 7.28 8.57 9.19 9.27 9.32 9.59 9.45 9.52 9.52 9.42 7 9.27 10.20 9.49 9.20 9.41 9.97 9.86 9.93 9.99 9.92 8 Italy 12.44 12.11 12.04 11.44 11.66 12.46 12.00 12.17 12.25 12.38 9 8.65 9.70 9.30 9.22 9.39 9.61 9.41 9.50 9.56 9.50 1100 5.39 7.75 7.33 6.41 6.22 6.02 5.18 5.19 4.95 4.72 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 • June 1992 3.28 FOREIGN EXCHANGE RATES1 Currency units per dollar 1991 1992 Country/currency 11998899 11999900 11999911 Nov. Dec. Jan. Feb. Mar. Apr. 1 Australia/dollar2 79.186 78.069 77.872 78.660 77.122 74.756 75.178 75.865 76.241 2 Austria/schilling 13.236 11.331 11.686 11.408 11.003 11.108 11.391 11.693 11.620 3 Belgium/franc 39.409 33.424 34.195 33.391 32.198 32.501 33.307 34.189 33.927 4 Canada/dollar 1.1842 1.1668 1.1460 1.1302 1.1467 1.1571 1.1825 1.1928 1.1874 5 China, P.R./yuan 3.7673 4.7921 5.3337 5.3994 5.4232 5.4618 5.4776 5.4871 5.5098 6 Denmark/krone 7.3210 6.1899 6.4038 6.2947 6.0831 6.1257 6.2763 6.4462 6.3906 7 Finland/markka 4.2963 3.8300 4.0521 4.1953 4.2447 4.2971 4.4230 4.5325 4.5023 8 France/franc 6.3802 5.4467 5.6468 5.5391 5.3406 5.3858 5.5088 5.6400 5.5773 9 Germany Deutsche mark 1.8808 1.6166 1.6610 1.6208 1.5630 1.5788 1.6186 1.6616 1.6493 10 Greece/drachma 162.60 158.59 182.63 183.68 179.52 182.42 187.13 192.26 192.83 11 Hong Kong/dollar 7.8008 7.7899 7.7712 7.7591 7.7738 7.7612 7.7582 7.7463 7.7404 12 India/rupee 16.213 17.492 22.712 25.802 25.818 25.863 25.992 28.378 28.896 13 Ireland/pound2 141.80 165.76 158.26 164.75 170.46 168.73 164.87 160.50 161.65 14 Italy/lira 1,372.28 1,198.27 1,241.28 1,221.04 1,182.21 1,189.76 1,215.92 1,248.28 1,241.55 15 Japan/yen 138.07 145.00 134.59 129.63 128.04 125.46 127.70 132.86 133.54 16 Malaysia/ringgit 2.7079 2.7057 2.7503 2.7412 2.7417 2.6891 2.6012 2.5779 2.5521 17 Netherlands/guilder — 2.1219 1.8215 1.8720 1.8269 1.7618 1.7780 1.8218 1.8706 1.8568 18 New Zealand/dollar2 — 59.561 59.619 57.832 56.352 55.256 54.194 54.177 54.790 54.138 19 Norway/krone 6.9131 6.2541 6.4912 6.3643 6.1558 6.2044 6.3472 6.5188 6.4606 20 Portugal/escudo 157.53 142.70 144.77 141.43 138.90 136.92 139.47 143.26 141.09 21 Singapore/dollar 1.9511 1.8134 1.7283 1.6709 1.6453 1.6337 1.6361 1.6601 1.6567 22 South Africa/rand 2.6214 2.5885 2.7633 2.7916 2.7665 2.7831 2.8156 2.8830 2.8783 23 South Korea/won 674.29 710.64 736.73 757.44 761.68 767.09 769.93 775.68 782.55 24 Spain/peseta 118.44 101.96 104.01 102.56 99.70 100.05 101.73 104.88 103.90 25 Sri Lanka/rupee 35.947 40.078 41.200 42.374 42.523 42.665 42.879 42.744 43.231 26 Sweden/krona 6.4559 5.9231 6.0521 5.9246 5.7158 5.7461 5.8764 6.0263 5.9667 27 Switzerland/franc 1.6369 1.3901 1.4356 1.4348 1.3855 1.4039 1.4561 1.5094 1.5194 28 Taiwan/dollar 26.407 26.918 26.759 25.975 25.759 25.150 25.049 25.407 25.308 29 Thailand/baht 25.725 25.609 25.528 25.497 25.431 25.328 25.463 25.637 25.644 30 United Kingdom/poundz 163.82 178.41 176.74 177.96 182.72 180.90 177.78 172.38 175.66 MEMO 31 United States/dollar 98.60 89.09 89.84 87.98 85.65 86.09 88.04 90.44 89.84 1. Averages of certified noon buying rates in New York for cable transfers. currencies of ten industrial countries. The weight for each of the ten countries is Data in this table also appear in the Board's G.5 (405) monthly statistical the 1972-76 average world trade of that country divided by the average world release. For ordering address, see inside front cover. trade of all ten countries combined. Series revised as of August 1978 (see Federal 2. Value in U.S. cents. Reserve Bulletin, vol. 64 (August 1978), p. 700). 3. Index of weighted-average exchange value of U.S. dollar against the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A69 Guide to Statistical Releases and Special Tables STATISTICAL RELEASES—-List Published Semiannually, with Latest BULLETIN Reference Issue Page Anticipated schedule of release dates for periodic releases June 1992 A78 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 Index to Statistical Tables References are to pages A3-A68 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 Assets and liabilities (See also Foreigners) Ownership by individuals, partnerships, and corporations, 22 Banks, by classes, 19-21 Turnover, 16 Domestic finance companies, 34 Depository institutions Federal Reserve Banks, 11 Reserve requirements, 9 Financial institutions, 26 Reserves and related items, 4, 5, 6, 13 Foreign banks, U.S. branches and agencies, 22 Deposits (See also specific types) Automobiles Banks, by classes, 4, 19-21, 22 Consumer installment credit, 37, 38 Federal Reserve Banks, 5,11 Production, 47, 48 Turnover, 16 Discount rates at Reserve Banks and at foreign central banks and foreign countries (See Interest rates) BANKERS acceptances, 10, 23, 24 Discounts and advances by Reserve Banks (See Loans) Bankers balances, 19-21. (See also Foreigners) Dividends, corporate, 33 Bonds (See also U.S. government securities) New issues, 33 Rates, 24 EMPLOYMENT, 45 Branch banks, 22, 55 Eurodollars, 24 Business activity, nonfinancial, 44 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 Federal credit agencies, 31 CAPACITY utilization, 46 Federal finance Capital accounts Debt subject to statutory limitation, and types and ownership Banks, by classes, 19 of gross debt, 28 Federal Reserve Banks, 11 Receipts and outlays, 26, 27 Central banks, discount rates, 67 Treasury financing of surplus, or deficit, 26 Certificates of deposit, 24 Treasury operating balance, 26 Commercial and industrial loans Federal Financing Bank, 26, 31 Commercial banks, 17, 20 Federal funds, 7, 18, 20, 21, 22, 24, 26 Weekly reporting banks, 20-22 Federal Home Loan Banks, 31 Commercial banks Federal Home Loan Mortgage Corporation, 31, 35, 36 Assets and liabilities, 19-21 Federal Housing Administration, 31, 35, 36 Commercial and industrial loans, 17, 19, 20, 21, 22 Federal Land Banks, 36 Consumer loans held, by type and terms, 37, 38 Federal National Mortgage Association, 31, 35, 36 Loans sold outright, 20 Federal Reserve Banks Nondeposit funds, 18 Condition statement, 11 Real estate mortgages held, by holder and property, 36 Discount rates (See Interest rates) Time and savings deposits, 4 U.S. government securities held, 5, 11, 12, 28 Commercial paper, 23, 24, 34 Federal Reserve credit, 5, 6, 11, 12 Condition statements (See Assets and liabilities) Federal Reserve notes, 11 Construction, 44, 49 Federally sponsored credit agencies, 31 Consumer installment credit, 37, 38 Finance companies Consumer prices, 44, 46 Assets and liabilities, 34 Consumption expenditures, 52, 53 Business credit, 34 Corporations Loans, 37, 38 Nonfinancial, assets and liabilities, 33 Paper, 23, 24 Profits and their distribution, 33 Financial institutions Security issues, 32, 65 Loans to, 20, 21, 22 Cost of living (See Consumer prices) Selected assets and liabilities, 26 Credit unions, 37 Float, 51 Currency and coin, 19 Flow of funds, 39,41,42, 43 Currency in circulation, 5, 14 Foreign banks, assets and liabilities of U.S. branches and Customer credit, stock market, 25 agencies, 21, 22 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

A71 Foreigners REAL estate loans Claims on, 55, 57, 60, 61, 62, 64 Banks, by classes, 17, 20, 21, 36 Liabilities to, 21, 54, 55, 57, 58, 63, 65, 66 Financial institutions, 26 Terms, yields, and activity, 35 GOLD Type of holder and property mortgaged, 36 Certificate account, 11 Repurchase agreements, 7, 18, 20, 21, 22 Stock, 5, 54 Reserve requirements, 9 Government National Mortgage Association, 31, 35, 36 Reserves Gross 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 New issues, 32 Investment companies, issues and assets, 33 Prices, 25 Investments (See also specific types) Special drawing rights, 5, 11, 53, 54 Banks, by classes, 19, 20, 21, 22, 26 State and local governments Commercial banks, 4, 17, 19-21 Deposits, 20, 21 Federal Reserve Banks, 11, 12 Holdings of U.S. government securities, 28 Financial institutions, 36 New security issues, 32 Ownership of securities issued by, 20, 21 LABOR force, 45 Rates on securities, 24 Life insurance companies (See Insurance companies) Stock market, selected statistics, 25 Loans (See also specific types) Stocks (See also Securities) Banks, by classes, 19-21 New issues, 32 Commercial banks, 4, 17, 19-21 Prices, 25 Federal Reserve Banks, 5, 6, 8, 11, 12 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 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 U.S. government balances Monetary and credit aggregates, 4, 13 Commercial bank holdings, 19, 20, 21 Money and capital market rates, 24 Treasury deposits at Reserve Banks, 5, 11, 26 Money stock measures and components, 4, 14 U.S. government securities Mortgages (See Real estate loans) Bank holdings, 19-21, 22, 28 Mutual funds, 33 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 NATIONAL defense outlays, 27 transactions, 11, 28, 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

A72 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 DIVISION OF RESEARCH AND STATISTICS J. VIRGIL MATTINGLY, JR., General Counsel 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, Associate 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 PETER A. TINSLEY, Deputy Associate Director WILLIAM W. WILES, Secretary MYRON L. KWAST, Assistant Director JENNIFER J. JOHNSON, Associate Secretary PATRICK M. PARKINSON, Assistant Director BARBARA R. LOWREY, Associate Secretary RICHARD C. STEVENS, Assistant Secretary1 MARTHA S. SCANLON, Assistant Director JOYCE K. ZICKLER, Assistant Director DIVISION OF CONSUMER JOHN J. MINGO, Adviser LEVON H. GARABEDIAN, Assistant Director AND COMMUNITY AFFAIRS (Administration ) GRIFFITH L. GARWOOD, Director GLENN E. LONEY, Assistant Director DIVISION OF MONETARY AFFAIRS ELLEN MALAND, Assistant Director DONALD L. KOHN, Director DOLORES S. SMITH, Assistant Director DAVID E. LINDSEY, Deputy Director DIVISION OF BANKING BRIAN F. MADIGAN, Assistant Director RICHARD D. PORTER, Assistant Director SUPERVISION AND REGULATION NORMAND R.V. BERNARD, Special Assistant to the Board RICHARD SPILLENKOTHEN, Director STEPHEN C. SCHEMERING, Deputy Director OFFICE OF THE INSPECTOR GENERAL DON E. KLINE, Associate Director BRENT L. BOWEN, Inspector General WILLIAM A. RYBACK, Associate Director BARRY R. SNYDER, Assistant Inspector General FREDERICK M. STRUBLE, Associate Director HERBERT A. BIERN, Assistant Director ROGER T. COLE, Assistant Director JAMES I. GARNER, Assistant Director JAMES D. GOETZINGER, Assistant Director MICHAEL G. MARTINSON, Assistant Director ROBERT S. PLOTKIN, Assistant Director SIDNEY M. SUSSAN, Assistant Director LAURA M. HOMER, Securities Credit Officer 1. On loan from the Division of Information Resources Management. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A73 JOHN P. LAWARE SUSAN M. PHILLIPS LAWRENCE B. LINDSEY OFFICE OF DIVISION OF RESERVE BANK OPERATIONS STAFF DIRECTOR FOR MANAGEMENT AND PAYMENT SYSTEMS S. DAVID FROST, Staff Director CLYDE H. FARNSWORTH, JR., Director WILLIAM SCHNEIDER, Special Assignment: DAVID L. ROBINSON, Deputy Director (Finance and Project Director, National Information Center Control) PORTIA W. THOMPSON, Equal Employment Opportunity BRUCE J. SUMMERS, Deputy Director (Payments and Programs Officer Automation) CHARLES W. BENNETT, Assistant Director DIVISION OF HUMAN RESOURCES JACK DENNIS, JR., Assistant Director MANAGEMENT EARL G. HAMILTON, Assistant Director JEFFREY C. MARQUARDT, Assistant Director DAVID L. SHANNON, Director JOHN H. PARRISH, Assistant Director JOHN R. WEIS, Associate Director LOUISE L. ROSEMAN, Assistant Director ANTHONY V. DIGIOIA, Assistant Director FLORENCE M. YOUNG, Assistant Director JOSEPH H. HAYES, JR., Assistant Director FRED HOROWITZ, Assistant Director OFFICE OF THE CONTROLLER GEORGE E. LIVINGSTON, Controller STEPHEN J. CLARK, Assistant Controller (Programs and Budgets) DARRELL R. PAULEY, Assistant Controller (Finance) DIVISION OF SUPPORT SERVICES ROBERT E. FRAZIER, Director GEORGE M. LOPEZ, Assistant Director DAVID L. WILLIAMS, Assistant Director DIVISION OF INFORMATION RESOURCES MANAGEMENT STEPHEN R. MALPHRUS, Director BRUCE M. BEARDSLEY, Deputy Director ROBERT J. ZEMEL, Senior Adviser MARIANNE M. EMERSON, Assistant Director Po KYUNG KIM, Assistant Director RAYMOND H. MASSEY, Assistant Director EDWARD T. MULRENIN, Assistant Director DAY W. RADEBAUGH, JR., Assistant Director ELIZABETH B. RIGGS, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Federal Reserve Bulletin • June 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

A75 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

A76 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 1981. 1982. 239 pp. $ 6.50 per copy. FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. December 1986. 264 pp. $10.00 each. 1982. 1983. 266 pp. $ 7.50 per copy. 1983. 1984. 264 pp. $11.50 per copy. FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALY- SIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each. 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 Federal Reserve Bank Board of Directors ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— 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

A77 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 161. A REVIEW OF CORPORATE RESTRUCTURING ACTIVITY, text or to be added to the mailing list for the series may be sent 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

A78 ANTICIPATED SCHEDULE OF RELEASE DATES FOR PERIODIC RELEASES—BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM 1 (PAYMENT MUST ACCOMPANY REQUESTS) Annual Approximate Date of period to which data Weekly Releases rate release days refer • Aggregate Reserves of Depository Institutions and $15.00 Thursday Week ended previous the Monetary Base. H.3 (502) [1.20] Wednesday • Actions of the Board: Applications and Reports $35.00 Friday Received. H.2 (501) Week ended previous Saturday • Assets and Liabilities of Insured Domestically $15.00 Monday Chartered and Foreign Related Banking Wednesday, 3 weeks earlier Institutions. H.8 (510) [1.25] • Factors Affecting Reserves of Depository $15.00 Thursday Week ended previous Institutions and Condition Statement of Federal Wednesday Reserve Banks. H.4.1 (503) [1.11] • Foreign Exchange Rates. H.10 (512) [3.28] $15.00 Monday Week ended previous Friday • Money Stock, Liquid Assets, and Debt Measures. $35.00 Thursday Week ended Monday of H.6 (508) [1.21] previous week • Selected Borrowings in Immediately Available $15.00 Wednesday Week ended Thursday of Funds of Large Commercial Banks. H.5 (507) previous week [1.13] • Selected Interest Rates. H.15 (519) [1.35] $15.00 Monday Week ended previous Saturday • Weekly Consolidated Condition Report of Large $15.00 Friday Wednesday, 1 week earlier Commercial Banks, and Domestic Subsidiaries. H.4.2 (504) [1.26, 1.30] Monthly Releases • Consumer Installment Credit. G.19 (421) [1.55, $ 5.00 5th working day of 2nd month previous 1.56] month • Debits and Deposit Turnover at Commercial Banks. $ 5.00 12th of month Previous month G.6 (406) [1.22] • Finance Companies. G.20 (422) [1.51, 1.52] $ 5.00 5th working day of 2nd month previous month • Foreign Exchange Rates. G.5 (405) [3.28] $ 5.00 1st of month Previous month • Industrial Production and Capacity Utilization. G.17 Previous month $15.00 Midmonth (419) [2.12, 2.13] • Loans and Securities at all Commercial Banks. G.7 Previous month $ 5.00 3rd week of month (407) [1.23] • Major Nondeposit Funds of Commercial Banks. Previous month $ 5.00 3rd week of month G. 10 (411) [1.24] • Research Library—Recent Acquisitions. G. 15 (417) Free of 1st of month Previous month charge • Selected Interest Rates. G. 13 (415) [1.35] $5.00 1st Tuesday of Previous month month 1. Release dates are those anticipated or usually met. However, please note that for some releases there is normally a certain variability because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later than anticipated. The respective Bulletin tables that report the data are designated in brackets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A79 Annual Approximate Date of period to which data Quarterly Releases rate release days refer • Agricultural Finance Databook. E.15 (125) $ 5.00 End of March, January, April, July, and June, September, October and December • Country Exposure Lending Survey. E. 16 (126) $ 5.00 January, April, Previous quarter July, and October • Flow of Funds Accounts: Seasonally Adjusted $25.00 23rd of February, Previous quarter and Unadjusted. Z.l (780) [1.57, 1.58] May, August, and November • Flow of Funds Summary Statistics. Z.l (788) $ 5.00 15 th of February, Previous quarter [1.59, 1.60] May, August, and November • Geographical Distribution of Assets and Liabilities $ 5.00 15 th of March, Previous quarter of Major Foreign Branches of U.S. Banks. E. 11 June, September, (121) and December • Survey of Terms of Bank Lending to Business. E.2 $ 5.00 Midmonth of February, May, August, and (111) [4.23] March, June, November September, and December • List of OTC Margin Stocks. E.7 (117) $ 5.00 January, April, February, May, August, and July, and November October Semiannual Releases • Balance Sheets for the U.S. Economy. C.9 (108) 5.00 October and April Previous year • Report on the Terms of Credit Card Plans. E.5 5.00 March and August January and June (115) Annual Releases • Aggregate Summaries of Annual Surveys of $ 5.00 February End of previous June Securities Credit Extension. C.2 (101) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 Maps of the Federal Reserve System 1 9 BOSTON • MINNEAPOLIS! 7 • NEW YORK CHICAGO • I PHILADELPHIA CLEVELAND I SAN FRANCISCO 10 4 KANSAS CITYH S? Louis RICHMOND 6 m 11 ATLANTA DALLAS LEGEND Both pages Facing page • Federal Reserve Bank city • Federal Reserve Branch city • Board of Governors of the Federal — Branch boundary Reserve System, Washington, D.C. NOTE The Federal Reserve officially identifies Districts Commonwealth of Puerto Rico and the U.S. Virgin by number and Reserve Bank city (shown on both Islands; the San Francisco Bank serves American pages) and by letter (shown on the facing page). Samoa, Guam, and the Commonwealth of the In the 12th District, the Seattle Branch serves Northern Mariana Islands. The Board of Governors Alaska, and the San Francisco Bank serves Hawaii. revised the branch boundaries of the System most The System serves commonwealths and terri- recently in December 1991. tories as follows: the New York Bank serves the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A81 1-A 2-B 3-C 4-D 5_E Baltimore Pittsburgh Charlotte NH * ' 7 • Cincinnati Buffalo • ^ MA| ct -vD NJ NY BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 6-F 7-G 8-H • Nashville TN Birmingham WI Ml Louisville IA Detroit • n. • — Jacksonville IN • Memphis New Orleans Littl? ^ MS Rock Miami ATLANTA CHICAGO ST. LOUIS 9-1 MT 1 ND MN • Helf ;na 1 Ml WI 1 su • MINNEAPOLIS 10-J 12-L Omaha* J ALASKA I Denver Seattle / /10 • J Portland Oklahoma City OR c CA / KANSAS CITY NV 7 ^ L'T 11-K ) 9 • i Salt Lake City * AZ • • Los Angeles San Antonio! HAWAII DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A82 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 To be announced 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

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 file 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