Federal Reserve Bulletin, 1992-08

VOLUME 78 • NUMBER 8 • AUGUST 1992 i 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 579 DEREGULATION AND COMPETITION IN rates that would be made available by the JAPANESE BANKING issuance of indexed bonds, before the Subcommittee on Commerce, Consumer, and In the past fifteen years, the Japanese financial Monetary Affairs of the House Committee on system has been the focus of a series of liber- Government Operations, June 16, 1992. alization measures aimed at modernizing the intermediation process and improving the effi- 607 Governor LaWare addresses issues of regulaciency of Japanese corporate finance. These tory burden and says that both the Congress policy developments have stemmed largely and the regulatory agencies must act now to from pressures external to the domestic bank- stem the tide of ever-increasing regulatory ing sector itself, such as the Japanese govern- burden and to explore ways of reducing existment deficits of the 1970s, competition in ing burdens, before the Subcommittee on international financial markets, and a new Financial Institutions Supervision, Regulation emphasis on capital management. This article and Insurance of the House Committee on provides an overview of the forces that have Banking, Finance and Urban Affairs, June 23, induced changes in the Japanese banking 1992. system. 612 Griffith L. Garwood, Director, Division of Consumer and Community Affairs, Board 594 INDUSTRIAL PRODUCTION AND of Governors, comments on the "Lease- CAPACITY UTILIZATION Purchase Agreement Act," H.R.4497, which The index of industrial production increased would amend the Consumer Credit Protection 0.6 percent in May, a rate slightly faster than Act by imposing disclosure and substantive in the preceding three months. Total industrial requirements on lease-purchase transactions, capacity utilization rose 0.3 percentage point and says that a uniform federal disclosure in May, to 79.0 percent. scheme for lease-purchase agreements that provides key information to consumers without causing a substantial compliance burden 597 STATEMENTS TO THE CONGRESS to lessors might prove beneficial, provided the John P. LaWare, Member, Board of Govervarious parties affected by such legislation can nors, discusses the condition of U.S. commeridentify a genuine need for it, before the Subcial banks, the Federal Reserve's recent efforts committee on Consumer Affairs and Coinage to implement new banking legislation, and its of the House Committee on Banking, Finance efforts to promote a sound banking system, and Urban Affairs, June 24, 1992. and says that the recent performance of the banking industry offers encouragement that 615 ANNOUNCEMENTS conditions are beginning to improve, before the Senate Committee on Banking, Housing, Creation of the Russian-American Bankers and Urban Affairs, June 10, 1992. Forum. 603 Alan Greenspan, Chairman, Board of Gov- 617 LEGAL DEVELOPMENTS ernors, discusses the potential issuance of indexed bonds by the Treasury and says that Various bank holding company, bank service the Federal Reserve would use new market- corporation, and bank merger orders; and based indicators of inflation and real interest pending cases. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 FINANCIAL AND BUSINESS STATISTICS A86 BOARD OF GOVERNORS AND STAFF These tables reflect data available as of A88 FEDERAL OPEN MARKET COMMITTEE June 26, 1992. AND STAFF; ADVISORY COUNCILS A3 GUIDE TO TABULAR PRESENTATION A90 FEDERAL RESERVE BOARD A4 Domestic Financial Statistics PUBLICATIONS A44 Domestic Nonfinancial Statistics A53 International Statistics A92 MAPS OF THE FEDERAL RESERVE SYSTEM A69 GUIDE TO STATISTICAL RELEASES AND A94 FEDERAL RESERVE BANKS, BRANCHES, SPECIAL TABLES AND OFFICES A84 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Deregulation and Competition in Japanese Banking Allen B. Frankel and Paul B. Morgan, of the and remained largely isolated from the rest of the Board's Division of International Finance, pre- world. First, Japanese monetary authorities adminpared this article. An earlier version was presented istratively determined all interest rates, including at the Conference on Bank Structure and Competi- those on bank deposits and loans as well as coupon tion sponsored by the Federal Reserve Bank of rates on government bonds and bank debentures. Chicago, May 6-8, 1992. Second, various types of banking firms and other financial service firms were legally and administra- In the past fifteen years, the Japanese financial tively confined to a specified range of activities system has been the focus of a series of liberaliza- (see table 1 for an overview of the current limitation measures aimed at modernizing the intermedi- tions). Third, capital markets were repressed by ation process and improving the efficiency of Japa- guidelines, such as strict collateral requirements for nese corporate finance. These policy developments the issuance of corporate bonds. Consequently, few have stemmed largely from pressures external to alternatives to bank financing existed for even the the domestic banking sector itself, such as the largest firms. substantial increase in government debt as a result Internationally, exchange controls and limits on of changes in the flow of funds in Japan after the foreign activities restricted the access of Japanese OPEC oil shocks; increased competition in inter- financial firms to foreign financial markets. Until national financial markets; and a new emphasis the 1970s, only a limited number of financial firms, on bank capital management. These influences are including foreign banks granted special concesengendering fundamental changes in the system of sions, were licensed to engage in foreign exchange finance in Japan, the objectives on which Japanese transactions. This system of foreign exchange conbankers place importance, and the competitive trols and licenses effectively separated Japanese position of the banking system vis-a-vis the interna- domestic markets from financial markets abroad. tional sector and the domestic nonbank financial sector. This article provides an overview of the forces that have induced changes in the Japanese Domestic banking system and attempts to discuss these changes in the context of the ongoing financial The OPEC oil shock in 1973 signaled a turning reform effort in Japan. (For an overview of the point in the operation of the domestic Japanese process of change in the Japanese banking system, financial system. The contractionary effect of the see chart 1.) oil price increases ushered in a period of sizable government deficits, which resulted in a buildup in the outstanding stock of Japanese government EVOLUTION OF JAPAN'S FINANCIAL SYSTEM bonds. Outstanding government debt rose as a percentage of GNP from 5 percent in the early 1970s For more than three decades after World War II, to 40 percent in the early 1980s.1 the Japanese financial system was highly regulated NOTE. The authors especially wish to thank Hiroshi Nakaso, 1. The increase in government debt was reversed later in the Alicia Ogawa, and Larry Promisel for their comments and assis- 1980s, as government budget surpluses facilitated the retirement of tance. outstanding government bonds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

580 Federal Reserve Bulletin • August 1992 1. Overview of the changes in the Japanese banking system, 1973-present The buildup of Japanese government debt forced Bank of Japan and the underwriting syndicate is changes in the relationship between the Bank of evocative of the 1951 accord between the Federal Japan and members of the underwriting syndicate Reserve and U.S. Treasury from which the Federal for government bonds. Traditionally, syndicate Reserve received discretionary authority for monemembers purchased newly issued government tary policy.4 Facing financial strains in the absence bonds with the understanding that the debt could of the Bank of Japan's backstop facility, the syndilater be sold to the Bank of Japan at a price that cate successfully lobbied in 1977 for permission to would ensure the avoidance of losses on the origi- develop a secondary market. Syndicate members nal bond purchase. This arrangement involved ex viewed the secondary market as a mechanism for post compensation of losses by the Bank of Japan off-loading their holdings of seasoned bonds when as fiscal agent for the Japanese government.2 they were called upon to purchase new debt. The With the surge in government bond flotation, Japanese authorities allowed the secondary market Japanese authorities concluded that the Bank of to develop gradually, but the syndicate process Japan could no longer guarantee the repurchase of did not function smoothly during the period of the growing volume of government debt without large net issuance of government debt. As Suzuki jeopardizing its ability to exercise monetary con- notes, over two periods in 1981 and 1982, in fact, trol.3 The elimination of the agreement between the syndicate participants publicly refused to carry out their underwriting responsibilities. The introduction of secondary market trading 2. Yoshio Suzuki concludes that underwriting of government marked the end of the postwar era of absolute debt during the period of low administered rates before 1975 was administrative control of Japanese interest rates. not a source of adverse pressure from the viewpoint of either liquidity or profitability for syndicate members. See Yoshio Suzuki, Japanese banks and securities companies were Money, Finance, and Macroeconomic Performance in Japan (Yale given formal authorization for a market-rate fund- University Press, 1986). ing mechanism for their bond purchases through 3. Kumiharu Shigehara describes the Bank of Japan's policy the use of short-term repurchase agreements; and before 1975 as one in which the outright purchase of Japanese government bonds was generally kept in line with the trend increase as a result, the gensaki market came into being. in the monetary base. Also, Japanese law prohibits the Bank of Japan's direct subscription to new government bond issues. See Kumiharu Shigehara, "Japan's Experience with Use of Monetary Policy and the Process of Liberalization" (paper presented to the 4. Paul M. Horvitz notes that, soon after the accord, long-term Pacific Region Central Banks' Conference on Domestic Monetary U.S. government bond prices dropped below par for the first time Policy sponsored by the Reserve Bank of Australia, October 12-13, since 1937. Paul M. Horvitz, Monetary Policy and the Financial 1990). System, 3d. ed. (Prentice-Hall, 1983). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Deregulation and Competition in Japanese Banking 581 1. Segmentation in the Japanese financial system The primary investors in the gensaki market were Japanese nonfinancial companies, which often used Type of firm Regulatory guidelines the market to exploit arbitrage opportunities to borrow at administratively determined rates and Domestically owned Ordinary banks (includes Prohibited from engaging in trust- invest at higher, market-based rates. Japanese secucity banks)1 related businesses (for example, rities companies used the gensaki market to finance pension fund management) Prohibited from issuing long-term their inventories of bonds and, in the process, bank debt, except convertible greatly expanded their overall share of the underbonds (since 1987) and regulated amounts of subordinated debt for writing of Japanese government bonds. Overall, in the purpose of improving capital terms of adapting their financial structures to acadequacy levels (since June 1990) Prohibited from accepting deposits commodate large government debt issues, the Japawith maturities of more than three nese made choices similar to those made in other years countries: that is, to tolerate limited disintermedia- Long-term credit banks Authorized to issue long-term bank tion in the interest of buttressing the arrangements debt (with a maturity up to five years) used in government debt underwriting. May accept deposits only from its In the 1970s, however, the Japanese authorities borrowers and from governments May open only a limited number of were reluctant reformers of their highly segmented branches financial system. For example, until 1979, Japanese Trust banks Authorized to engage in trust- banks were not permitted to issue yen-denominated related businesses (for example, certificates of deposit (CDs) as a source of marketpension fund management and investment trust management) based funding. The post-1984 surge in the growth Authorized to raise funds for long- of the Japanese domestic money markets paralleled term financing through loan trusts and money trusts (that is, term changes in the regulation of the access of Japanese deposits consolidated for the pur- banks and nonfinancial corporations to internapose of extending long-term credits) tional markets (chart 2). These changes liberalized the regulation of Japanese banks' access to interna- Financial institutions for Restricted to clients of a certain size, tional markets and thus had an important influence small businesses as measured by number of employees and capitalization on domestic market reform. levels (for example, shinkin banks' business clients are limited in size Through most of the postwar period, the Bank of to 300 employees and ¥400 Japan relied heavily on the administration of its million in capital) Limited mainly to clients that are credit facilities for bank borrowers as a mechanism members of cooperatives or credit enabling it to fulfill its monetary policy responsibilunions ities. The Bank provided a continuing source of Securities firms Prohibited from engaging in banking credit to Japanese commercial banks for funding activities Foreign owned Banks Authorized to engage in securities 2. Amounts outstanding of selected instruments in activities through partially owned Japanese money markets, 1974-91 securities affiliates (unlike domestic banks, which are prohibited Trillions of yen from securities activities) Authorized to engage in trust- • Call money related activities through the H Bills discounted establishment of trust bank B Certificates of deposit affiliates • Gensaki (repurchase transactions) Securities firms Authorized to engage in banking activities through subsidiaries (since 1990) 1. Two city banks differ in their range of activities from other ordinary banks: One is authorized to issue long-term debt but is restricted by its number of branches, and the other is authorized to engage in trust-related activities despite the prohibition against this activity for other ordinary banks. 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 SOURCES. Federation of Bankers Associations of Japan, Eurocurrency (various issues); and the Bank of Japan. SOURCE. Bank of Japan, Economic Statistics Annual (various years). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

582 Federal Reserve Bulletin • August 1992 bank asset expansion—a so-called overborrowed International position. In return, the Bank conditioned the availability of such funds on an adherence by the banks to guidelines concerning their individual lending The Foreign Exchange Law of 1980 marked a behaviors. This practice of "window guidance" of watershed in Japanese financial policy: It reversed domestic credit activities persisted until 1991, but the presumption that all international financial it is believed to have become more consultative transactions by Japanese residents were subject to than directive in the later years. government control unless explicitly authorized. In Besides giving administrative guidance regard- particular, it ushered in a period in which Japanese ing credit policies, the regulatory authorities re- commercial banks ceased operating overseas solely stricted the city banks' own efforts to raise capital.5 to finance the growing share of world trade ac- In 1983, the Japanese authorities first began to counted for by Japan's exports of finished goods encourage city banks to take advantage of market- and imports of raw materials. That is, Japanese determined share prices. The behavior of share authorities accepted the need for flexibility in the prices of Sumitomo Bank since 1977 provides an overseas activities of Japanese banks by enabling example of the effects of this policy change the banks to respond to the increasingly sophisti- (chart 3). Before 1983, all city bank shares traded cated financing requirements of their internationin the same narrow range shown for Sumitomo ally active corporate customers. Bank. After 1983, the share price of Sumitomo Two measures contained in the Foreign Ex- Bank rose, as did that of other city banks. The city change Law of 1980 proved to be of particular banks responded to the surge in their share prices importance in integrating Japanese domestic money by making large primary stock offerings at the markets with international markets. These were the higher market prices. The proceeds of these share authorizations (1) for Japanese banks to borrow offerings were earmarked to finance investments in and lend foreign currencies freely (both at home computer facilities and overseas branch networks. and abroad), subject only to prudential guidelines, Gradually, however, share prices of city banks have and (2) for Japanese companies to finance themstopped moving in lockstep. selves abroad through borrowing denominated in foreign currency. Throughout the early 1980s, the Japanese authorities further reformed their regulation of Japanese 5. There are two types of ordinary commercial banks, city and residents' participation in international markets. regional. The distinction is not a legal one but has become embedded in practice. In contrast to the regional banks, each of the eleven The cumulative effect of these liberalization meacity banks is headquartered in a major city and has a national sures was the opening up of important channels of branch network. intermediation through which Japanese interest rate conventions could be circumvented by transactions routed through offshore financial markets. As a 3. Price of a share of Sumitomo Bank, result of the arbitrage opportunities generated by January 1977-April 1992" these liberalizations, yen interest rates in domestic Yen and international markets became much more tightly linked: The standard deviation of the differential between three-month Euroyen and domestic gensaki interest rates fell 88 percent between the 1975-80 period and the 1981-85 period (from 190 basis points to 23 basis points). Further, reforms such as the 1984 abolition of "swap limits" for spot transactions had the effect of repatriating yen money markets from foreign locations, as evidenced by the post-1984 surge in the volume of 1. Monthly data. domestic money market transactions, which was SOURCE. Tokyo Stock Exchange, Monthly Statistics Report (various discussed earlier. issues). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Deregulation and Competition in Japanese Banking 583 Throughout the late 1980s, the Euroyen market terms in Japan. A chronology of the liberalization expanded sharply in response to a strong surge in of interest rates on Japanese deposits is shown in cross-border lending of yen to the Japanese non- table 2. bank sector by the offshore offices of Japanese The succession of regulatory reforms that folbanks. This form of bank lending had the advan- lowed the authorization of CDs in 1979 has caused tage of not being covered by Bank of Japan win- the interest costs of banks to become increasingly dow guidance, although activities in the Euroyen sensitive to movements in market interest rates. market were monitored. Japanese commentary sug- One change that was especially important in this gests that the accommodation of such borrowing process was the introduction of money market cerwas a component of a strategy for financial liberal- tificates (MMCs) in 1985, with interest rates linked ization in which offshore experience was used to by formula to open market rates on designated inform the implementation of domestic financial instruments. A steady increase has occurred in the reform.6 percentage of Japanese bank deposits that have liberalized, market-based interest rates (chart 4). The increases reflect the relaxation of restrictions ELEMENTS OF FINANCIAL LIBERALIZATION regarding the minimum denomination and maturity of deposits as well as the attraction of liberalized Two of the most important developments in the deposit rates during the period of rising yen interest process of financial liberalization were the gradrates between 1988 and 1990. In 1991, the share of ual deregulation of interest rates beginning in liberalized deposits for the city banks fell in May 1979 and the change in the corporate client response to a decline in the attractiveness of such base of Japanese banks as a result of interest rate deposits compared with that of assets with adminisderegulation. tratively determined interest rates, such as postal savings accounts. Interest Rate Reform As a result of their increased reliance on marketrate funding during the period of sharply rising The growth of the gensaki market, along with the short-term interest rates, the banks' pretax profits introduction in 1980 of the chukoku (government declined sharply (chart 4). In response, the banks bond mutual fund) market, caused a disintermedia- adjusted their methods of determining their prime tion of funds from the banking sector as corpora- rates for short- and long-term loans (in 1989 and tions rapidly sought to capture the higher yields 1991 respectively), so that the rates would more available in markets offering unregulated interest closely track actual funding costs. Formerly, rates rates. The consequent funding pressure on the Jap- on bank loans had been based on the official disanese banks caused by disintermediation led to the count rate of the Bank of Japan (for short-term introduction of negotiable CDs offered by commer- loans) or the rate paid on debentures issued by cial banks at liberalized interest rates. At the outset, long-term credit banks (for long-term loans). Not the restrictions set for CD issuance narrowly lim- unexpectedly, the banks encountered resistance to ited the maturity, minimum denomination, and total their revised loan-pricing formulas from large corfunding ceiling for each bank. These restrictions porate customers. In fact, some of the deterioration have been eased over time but not eliminated; for in corporate liquidity since the adoption of the new example, Japanese banks still cannot issue floating- lending rates could be associated with corporate rate deposits—a potential source of funding that customers' choosing to retire bank loans rather would more closely mirror standard loan-pricing than to roll over credits priced under the revised formulas (see chart 5). By regulation, there are restrictions on the matu- 6. This interpretation is bolstered by Kazuhito Osugi's commenrities of deposits that Japanese banks can issue. tary on the role of cross-border lending in reducing the importance City banks and other ordinary commercial banks of window guidance by the Bank of Japan in restraining competition among Japanese banks. See Kazuhito Osugi, "Japan's Experi- had been limited to two-year time deposits until ence of Financial Deregulation since 1984 in an International November 1991, when the limit was raised to three Perspective," Economic Papers 26 (Bank for International Settleyears. As noted previously, the city banks cannot ments, Basle, January 1990). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

584 Federal Reserve Bulletin • August 1992 2. Deregulation of deposit interest rates, 1979-94 Millions of yen except as noted Deposits with unregulated rates Deposits with deregulated rates1 DDDaaattteee ccchhhaaannngggeee Negotiable certificates Large time Money market Small-denomination eeeffffffeeeccctttiiivvveee of deposit deposits certificates money market certificates Minimum Minimum Minimum Minimum Term Term Term Term amount amount amount amount May 1979 500 3-6 mo January 1984 300 April 1985 100 1-6 mo 50 1-6 mo * • October 1985 1,000 3 mo to 2 yr April 1986 1 mo to 1 yr 500 1 mo to 1 yr * September 1986 300 30 April 1987 20 1 mo to 2 yr October 1987 10 April 1988 50 2 wk to 2 yr 50 November 1988 30 April 1989 20 * June 1989 3 6 mo to 1 yr • October 1989 10 (2) (2) 3 mo to 3 yr April 1990 1 April 1991 .5 * November 1991 June 1992 no minimum Timetable for further deregulation 1993 All time deposits to be fully deregulated 1994 All non-time deposits to be fully deregulated 1. Deregulated rates are based on open market interest rates. SOURCE. Federation of Bankers Associations of Japan, Japanese Banks 2. Money market certificates were combined with large time deposits after '97 (1991), and press reports. October 1989. issue floating-rate deposits. However, despite the banks have begun to increase their use of instrushort-term nature of their liabilities, the city banks ments such as interest rate swaps and futures; for steadily extended the maturity of their loan example, the reported volume of yen-interest-rate portfolios: The percentage of loans with terms swap transactions exhibited particularly strong longer than one year grew from 33 percent in 1980 growth in 1991. to 57 percent in 1991. Such loans are made over- Historically, Japanese banks have been able to whelmingly on a floating-rate basis, with the rate raise effective loan yields above posted lending reset periodically based on banks' posted long-term rates through the maintenance of compensating interest rates. deposit balances by loan customers (chart 6). Under The interest rate risk associated with this matu- compensating-balance arrangements, corporate rity mismatch became especially harmful to the borrowers hold interest free (or low interest) deposbanks between 1989 and 1991, when increases in its, either as a condition of the formal loan contract short-term interest rates resulted in an inverted or to maintain a "healthy, stable relationship" with yield curve in the yen market. Over this period, their banks. According to data from an annual Japanese banks made limited use of interest rate survey by the Japan Fair Trade Commission, the derivative products to manage their individual reliance on these compensating balances for loans interest rate exposures. Recently, however, the to small businesses declined steadily throughout Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Deregulation and Competition in Japanese Banking 585 4. Deposits with liberalized rates as a percentage of total 6. Effective lending spreads over cost of funds, 1987-911 deposits and change in banks' pretax profits, 1981-91' Percent Percent Percent O City banks Annual percentage change 1987 1988 1989 1990 1991 1. Data are monthly. Effective lending rates incorporate adjustments for the cost to borrowers of maintaining compensating balances. SOURCES. Bank of Japan, Economic Statistics Annual (1990), and Japan 1. Deposits with liberalized rates include CDs, MMCs, large- Fair Trade Commission, Survey on Compensating Balances (1991). denomination time deposits, nonresident yen deposits, and foreign currency deposits. SOURCES. Bank of Japan, Economic Statistics Annual (1991), and Flow of The deposit balances held under these agreements Funds in Japan (August 1991). artificially inflate asset levels by increasing the book value of loan portfolios to a level above that the 1980s, from 45 percent of surveyed loan conof the funds actually extended. During the midtracts in 1980 to 26 percent in 1990. The survey 1980s, a period of capital abundance, the consecovers only companies with less than ¥100 million quent asset inflation was not problematic. Howin capital, which now account for approximately ever, since the late 1980s, banks have begun to 70 percent of total city bank lending. In view of the view capital as an increasingly scarce commodity rising share of small business lending as a portion and have tended to turn away from practices that of the city banks' total loans, the overall reduction increase the leveraging of their capital positions. in loans with compensating balances as a percent- The process of interest rate deregulation in Japan age of banks' corporate loans could be considerhas caused a rationalization of the banking business ably smaller. For those loans with compensatingin terms of raising funds and extending credit. As balance requirements, the average rate maintained the importance of the administratively determined in 1990 was approximately 20 percent. interest rate structure fades, banks will face an Despite the financial benefits provided by comincreasingly competitive environment. The fallout pensating balances, these arrangements have from the increase in bank competition has been become less attractive for large Japanese banks. staggered throughout the period of gradual elimination of interest rate restrictions. As discussed ear- 5. Corporate liquidity ratios in Japan, 1985:Q1-1992:Q1' lier, the Japanese city banks have remained ahead of the smaller regional and cooperative banks in their share of deposits paying liberalized interest rates (chart 4). Yet, as the minimum denomination of money-market-related deposit instruments continues to decline while deregulation proceeds, the effect on the smaller institutions, whose small business clients and retail customers will then be able to gain access to the instruments, will become stronger (see table 2). 1985 1987 1989 1991 1. The liquidity ratio is the following: (cash + deposits) / average monthly Corporate Financing Developments sales. The sample is composed of all companies listed on the Japanese stock market with capital of ¥1 billion or more. The liquidity figure for 1992:Q1 is an estimate by the Bank of Japan. Historically, Japanese city banks maintained close SOURCES. Bank of Japan, Economic Statistics Annual (1991), and Ecorelationships with the largest Japanese corporanomic Statistics Monthly (February 1992). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

586 Federal Reserve Bulletin • August 1992 tions. As a byproduct of numerous financial devel- 7. Sources of Japanese corporate financing opments, including the introduction of alternative 1981-85 1986-90 sources of corporate finance, these firms have become less dependent on banks for their financing Foreign debts Stocks Stocksnomestic bonds Domestic bonds needs. City banks have responded to these changes ^m pKkTrade credit External bonds by placing a greater emphasis on developing rela- Commercial paper tionships with small and medium-size businesses, Trade credit which previously had been financed primarily by regional banks and smaller credit cooperatives Bank loans Bank loans (shinkin banks) as well as by extensions of inter- Total = ¥139 trillion Total =¥318 trillion firm trade credit by larger Japanese companies. As SOURCE. Bank of Japan, Economic Statistics Annual (various issues). a result, over the 1986-90 period, the share of city shareholders. The choice of denominating a conbank loans made to large Japanese corporations— vertible issue in a foreign currency, such as the those with more than ¥100 million in capital— Swiss franc, was strongly influenced by the fact declined nearly 20 percentage points, to only that the lower nominal cost of such an issue would 30 percent. result in higher reported current earnings than if the A comparison of the overall sources of finance issue were denominated in yen. There is little evifor Japanese corporations over the two periods dence that the "speculative" nature of such financ- 1981-85 and 1986-90 shows that trade credit acing choices by various Japanese firms, before the counted for a larger share of corporate finance in sharp 1990 decline in the Japanese stock market, the earlier period (18 percent compared with only was factored into market assessments. 5 percent in the later period) (see chart 7). The shift Between 1985 and 1991, Japanese private nonin bank relationships toward smaller firms accounts banks increased their outstanding debt issued in for much of the reduction in trade credit extended, international markets nearly six-fold, to a level of while the increased reliance on direct corporate $350 billion. For the most part, this choice of financing by large corporations explains the reducfinancing alternatives was in response to large diftion in the overall share of bank credit as a source ferentials in the cost of financing that favored interof financing. national over domestic Japanese markets. In turn, The increased importance of domestic and interthe cost differentials can be traced to particular national securities markets as sources of funds for characteristics of Japanese financial regulations and large Japanese companies is reflected in the nearly domestic financing practices. For example, the gap 30 percent share of corporate funds raised between between the rates charged for prime loans by the 1986 and 1990 through the issuance of domestic city banks and those available in the Euromarket securities (including commercial paper) and borhave provided an incentive for internationally recrowings in international markets. Borrowings in ognized Japanese firms to search actively for less international markets included large amounts of costly alternatives to domestic bank funding.7 equity-linked bonds issued by Japanese banks and The low level of domestic bond issuance by nonfinancial companies in two forms: convertible Japanese corporations has been attributed in part to bonds and straight bonds with detachable warrants. the costs imposed by the "commissioned" bank Japanese corporations (inclusive of banks) issued system in Japan. Under Japan's Securities and more than $30 billion of convertible bonds denom- Exchange Law, only securities firms are licensed to inated in Swiss francs between 1987 and 1990. underwrite corporate bonds; however, banks per- According to market observers, few issuers hedged form the role of trustees. The fees received by the currency exposure of these issues given their commissioned banks include a charge based on the view that the securities would inevitably be converted into stock. Japanese corporations believed 7. "Overseas Markets Beckon," International Financing Review that convertible issues offered lower costs of equity (April 27, 1991), p. 6, and "IADB Readies First Floating-Rate issuance than direct issuance of equity, perhaps Note," International Financing Review (May 11, 1991), p. 4. The reflecting the Japanese practice of offering new two articles identify the relationship between corporate lending rates and the Japanese long-term prime rate and describe how this issues at a discount from market price to existing led to the first floating-rate bond issued in Japan. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Deregulation and Competition in Japanese Banking 587 presumed responsibility of the trustee bank for could successfully induce banks to improve their repurchasing the secured bonds of a defaulting capital ratios in the absence of barriers against corporation. As Brian Semkow notes, the Bond further market penetration by Japanese banks. In Underwriters Association of Japan has estimated turn, the possibility of such protectionist responses that for a ¥10 billion bond, the commission fees in was one factor motivating efforts to move to a the domestic bond market are ¥53 million, whereas, level playing field for internationally active banks in the Euromarket, they are only ¥3.5 million. through the adoption of international capital Japan's "main bank" system for bank finance standards. parallels the character of the commission bank The task of setting out a framework for the system for corporate debt underwriting. One re- capital standard was assigned to the Basle Commitsponsibility of a main bank involves ensuring that a tee on Banking Supervision, a group of central client in financial distress makes debt service pay- banks and bank regulators from the G-10 countries, ments to other bank creditors. It has been argued whose secretariat is furnished by the BIS. By the that the costs of main bank financing to creditwor- end of 1987, the committee had agreed on a framethy Japanese corporations often exceed the benefits work calling for a common capital definition and a and therefore increase the relative attractiveness of risk-asset weighting scheme rather than a simple alternative forms of financing. Among these costs leverage ratio. The simplicity of the negotiated are those related to financial monitoring as well framework facilitates comparisons among banking as those associated with the financial support systems. In particular, unlike pre-existing national of the distressed member firms of a main bank's capital definitions with multiple tiers of capital, the keiretsu, a grouping of financial and nonfinancial new framework has only two (tier 1 and tier 2 companies. capital). Tier 1 capital consists of only the core constituents of the capital base, namely, equity and disclosed reserves. Tier 2 capital includes supple- IMPLICATIONS OF THE BASLE mentary elements, such as subordinated debt and CAPITAL ACCORD revaluation reserves. While the specific composition of tier 2 was left to national discretion, the In the early 1980s, central banks and regulatory committee specified several binding limitations on authorities became increasingly sensitive to the the inclusion of instruments in tier 2, including a absence of mutually agreed-upon rules for conduct 55 percent discount on unrealized gains on securiin the international banking business. The internaties holdings and a limit on includable suborditional debt crisis raised additional concerns regardnated debt at a level of 50 percent of tier 1 capital. ing the fragility of the international banking sys- The Basle Committee also agreed on a timetable tem, in view of the potential consequences of for establishing transitional capital adequacy guidedebtor country actions on the financial situations of lines during the implementation period. Under the a large number of internationally active banks. This Basle framework, internationally active banks must concern led national authorities in the United States meet an 8 percent minimum standard by the end of and other industrial countries to press banks to fiscal year 1992, of which at least half must constibolster their capital positions relative to the risk tute tier 1 capital. The Basle framework is a negotiexposures they assumed. ated document, which mirrors the situations of In the second half of the 1980s, the international individual banking systems. For example, the incluassets of Japanese banks surged dramatically. From sion of subordinated debt in tier 2 capital had no 1984 to 1988, the Japanese bank share of internaoperational significance for Japanese city banks tional bank assets rose more than 10 percentage points to 38 percent.8 This increase raised further during the late-1980s negotiations because Japanese banks were then prohibited from issuing subquestions as to whether national banking regulators ordinated debt. In contrast, U.S. money center banks had relatively large amounts of such debt 8. The reported share is based on data on international banking assets reported to the Bank for International Settlements (BIS) by outstanding as a result of previous efforts to the G-10 and other reporting countries. The data include bank improve their U.S. regulatory capital ratios. As claims on nonlocal customers in foreign and domestic currencies another example, Japanese city banks possessed and claims on local residents in foreign currencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

588 Federal Reserve Bulletin • August 1992 substantial revaluation reserves, reflecting unreal- 8. Total capital of Japanese city banks and the Nikkei ized gains on their cross-shareholdings in other Stock Average, 1981-911 Japanese companies. In contrast, U.S. banks did Trillions of yen Yearly average not. The requirements in the capital agreement could have been expected, among their other effects, to induce Japanese banks to slow the growth of their balance sheets. From this perspective, one view of the agreement suggests that Japanese banking authorities considered their situation equivalent to that of Japanese trade negotiators who were pressured to accept orderly marketing agreements as a cost of maintaining continued access for Japanese goods to specific foreign markets. A separate line 1981 1983 1985 1987 1989 1991 of reasoning is that Japanese authorities actually 1. Bank capital is defined here as equity, reserves, and capital surplus, and is roughly equivalent to BIS tier 1 capital. The data are on a sought the agreement as a means of leveraging calendar-year basis. their own efforts to encourage the financial reform SOURCE. Bank of Japan, Economic Statistics Annual (1991). process in Japan. While the two explanations are their stock holdings.10 Since the end of 1989, hownot mutually exclusive, the latter appears more ever, the Japanese stock market has fallen sharply. supportable from a historical perspective because This decline has not only made it more difficult for important structural reforms in Japan have histori- Japanese banks to raise additional equity but has cally been portrayed publicly as the undertaking of also lessened the attractiveness of boosting tier 1 a sacrifice that was necessary to placate hostile capital through the realization of gains on stock foreigners.9 However, the expectations of the framholdings. ers of the Basle agreement were not immediately Before the negotiation of the Basle Accord, no fulfilled in the sense that the asset growth of Japaclear relation existed between the growth rate of nese banks was unrestrained. Rather, the severe Japanese city banks' capital and their domestic fluctuations in the Japanese stock market in the late assets (chart 9). However, the data suggest a 1980s had important consequences for the capital linkage between the two growth rates since the situations of Japanese banks. announcement of the accord. The strong upward movement in the ratio of city banks' capital to their Capital-Raising Activities of Japanese Banks domestic assets in the late 1980s and the leveling off of this ratio in the past few years lend support to The capital-raising activities of Japanese banks the view that the relationship reflects a new emphaafter the adoption of the new capital framework sis by the management of Japanese banks on the were phenomenal: From 1986 to 1990, the tier 1 role of capital (see chart 10).11 capital of the Japanese city banks increased at an average annual rate of 21 percent. There was a 10. In the late 1980s, Japanese authorities effectively discourstrong positive correlation of the capital growth of aged Japanese banks from reducing their exposures to heavily the city banks with the upward movement of Japa- indebted middle income countries through secondary market sales at a discount. However, the banks were permitted to reduce their nese stock prices in the late 1980s (chart 8). The exposures in connection with their participation in restructuring correlation is largely accounted for by Japanese agreements for Argentina, Brazil, and Mexico, and, subsequently, banks' capitalizing on the opportunities presented in connection with their involvement in the Brady debt reduction agreement for Mexico. The resulting tax losses from such transacby the favorable terms available for the issuance of tions were offset by the capital gains from stock sales that were new equity and convertible bonds as well as from routinely reversed so as to permit the bank to meet its obligations the realization, through sales, of latent gains on as a reliable shareholder of client firms. 11. Japanese accounting practices require banks to value securities at the lower of cost or market. This accounting convention 9. For example, students of the Japanese system continue to means that the stock market decline had little direct effect on debate the role of Admiral Perry's "black ships" in prompting the banks' reported tier 1 positions because most stocks continued to structural reforms undertaken by the Meiji state. be reported on a cost-of-acquisition basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Deregulation and Competition in Japanese Banking 589 9. Annual growth rates of capital and domestic assets of 11. Effect of stock market decline on capital ratios of Japanese city banks, 1981-91 Japanese city banks1 Percent of risk assets Capital1 Before 1990 stock market decline Recent situation Nikkei Stock Index=39,000 Nikkei Stock Index=l 7,000 (Tier 2 constrained) (Tier 2 unconstrained) I I I L 1981 1983 1985 1987 1989 1991 1. Defined as the aggregate of equity, reserves, and capital surplus for the city banks. SOURCE. Bank of Japan, Economic Statistics Annual (1991). The fall in Japanese stock prices sharply curtailed the banks' ability to support further asset growth at their historical rates, as documented by 1. Ratios shown are only approximate. The chart reflects the specific the capital positions of the city banks before and situation facing the Japanese city banks; however, the capital of all Japanese after the 1990 stock market decline (chart 11). commercial banks is affected by movements in Japanese stock prices through the same mechanism. Before 1990, the banks were constrained by the Basle Accord limits on the amount of allowable tier 2 capital (represented by the distance AB). pulled in another unit of surplus unrealized gains Under the final Basle Accord guidelines, tier 2 (for a total of two new units of capital) to fund capital could only be included in total bank capital asset expansion. up to the level of existing tier 1 capital (that is, tier As a result of the stock market decline over 2 must constitute 50 percent or less of the total). 1990-92, however, the drop in unrealized capital While banks were operating under this constraint, gains has caused tier 2 capital to fall below the any additions to tier 1 capital through retained Basle Accord ceiling of 100 percent of tier 1 capiearnings or equity issues also raised the ceiling on tal (chart 11). After the decline in stock prices, tier 2 capital by an equal amount (segment BC)\ increases in capital through retained earnings or therefore, every additional unit of retained earnings equity financing (from AB to AC) now fund only (including realization of gains on sales of equity) half as much asset expansion because there is no longer any surplus tier 2 capital. Additions to banks' risk-based asset totals now face much higher 10. Capital-asset ratio of Japanese city banks, 1981-911 effective capital charges compared with those that Percent prevailed before the drop in the stock market. The capital gains that the banks realized from the sale of equity securities and the level of equity financ- —4.5 — ing over 1985-90 were sharply affected by the weakness in the Japanese stock market after 1989 — 4.0 — (see charts 12 and 13). For example, the city banks in 1989 issued approximately ¥1.8 trillion — 3.5 ($12.5 billion) in common stock but have since refrained entirely from new issuance of common 1 1 1 1 1 1 i 1 1 1 1 1 stock. 1981 1983 1985 1987 1989 1991 1. The capital-asset ratio is defined here as simply total capital (that is, The capital ratios of the city banks are also equity, reserves, and capital surplus) divided by total domestic assets. The sensitive to exchange rate movements. Japanese ratio is not equivalent to any Basle capital ratio. supervisory rules operate to immunize a bank's SOURCE. Bank of Japan, Economic Statistics Annual (1991). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

590 Federal Reserve Bulletin • August 1992 had issued nearly ¥6 trillion of subordinated debt 12. Capital gains on the sale of securities by Japanese city banks, 1985-91' (approximately $45 billion), or about 50 percent of their aggregate tier 2 capital at the end of fiscal year 1991). These innovations offset some of the negative effect of the stock market decline on the capital positions of the banks. However, the replacement in bank capital of "costless" unrealized gains on share holdings by costly subordinated debt and preferred stock had financial consequences. These consequences are associated with the need to raise the share of bank funding met by capital. Overall, the substitution of subordinated debt and preferred stock for deposits is estimated to have reduced the aggregate pretax return on equity for the city banks 1. The distinction in Japan between investment account and trading by 81 basis points, to 9.16 percent in fiscal year account securities is similar to that in the United States. 1991. SOURCES. Bank of Japan, Special Paper 206 (September 1991) and Salomon Brothers. City bank profits were also negatively affected total capital but not its capital ratio from exchange by the mounting expenses associated with the onrate movements. It is our estimated rule of thumb going support of affiliated nonbank financial instithat an increase (decrease) in the yen-dollar tutions that are among the major creditors of exchange rate of ¥10 results in a decrease (in- so-called bubble companies—firms that have been crease) of 18 basis points in the aggregate Basle heavily involved in speculative investments, risk-weighted ratio of the Japanese city banks. Nev- mainly in real estate. The ongoing financial diffiertheless, the limited movements of the yen-dollar culties of these firms have not been reflected in the exchange rate in recent years have meant that increased provisions for loan losses by city banks, exchange rate changes have not been an important partly as a result of Japanese accounting rules that influence on bank capital ratios. do not provide for the disclosure of probable loan losses. Thus, over the next few years, the earnings In response to the erosion of the banks' capital of the city banks will continue to be adversely bases caused by the stock market decline, Japanese affected by losses on loans to bubble firms in authorities supported the banks by authorizing the financial distress. issuance of subordinated debt (counted as tier 2 capital) and perpetual preferred stock (counted as tier 1 capital). As of March 1992, the city banks Capital Adequacy and Bank Asset Growth 13., Equity financing by Japanese city banks, 1985-911 The aggregate worldwide assets of the Japanese Trillions of yen city banks declined 5 percent in 1991—the first yearly asset decline since before World War n. A reduction in interbank placements and deposits more than accounted for this decline in assets. Activity in international markets decreased sharply over 1991 in response to the capital pressures caused by the effect of the fall in Japanese stock prices on the unrealized stock gains of the banks. Total assets of the overseas branches of Japanese city banks fell 13 percent in 1991. The relationship between the Japanese stock 1. Equity is raised through convertible bond issues upon conversion of the market and the average Basle capital ratio of the bond into common stock. Japanese city banks indicates the strength of the SOURCES. Bank of Japan, Special Paper 206 (September 1991), and Economic Statistics Monthly (May 1992). financial pressures on the banks caused by changes Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Deregulation and Competition in Japanese Banking 591 in Japanese stock prices. This relationship can be have sufficiently profitable long-term banking relashown by using the estimated level of risk- tionships. Each of these responses emphasizes the weighted assets as of March 1992 (see chart 14). heightened awareness of the banks to the impor- As the Nikkei Stock Average rises above 20,000 tance of maintaining a sufficient risk-adjusted approximately, a declining share of the addition to return on capital. unrealized gains caused by the stock price appreciations may be included in tier 2 capital (that is, the slope of the line decreases). Point B in the chart THE OUTLOOK FOR FINANCIAL REFORM reflects a Nikkei level of 22,000. At this point, without any change in asset levels, the average The segmentation currently present in the Japanese capital ratio of the banks will increase to 8.8 per- financial system is much greater than that in the cent. Alternatively, this appreciation will create a United States. The Japanese system of specialized capital cushion sufficient for the city banks to in- banking and credit intermediaries has remained crease their aggregate risk-weighted assets 13 per- largely unchanged since its reconfiguration after cent and still meet the 8 percent capital standard World War II. Traditional Japanese decisionmak- (represented by the shift from B to B*). Similarly, ing has operated to create a reform process in point C reflects the effects of a fall of the Nikkei to which the effect of various liberalization measures 14,000. To compensate for this decline and main- must be deftly balanced among all constituencies, tain an 8 percent capital ratio, the banks have thereby demanding that every attempt be made to to reduce their aggregate risk-weighted assets minimize the costs inflicted on any one sector of 14 percent (movement from C to C*). Alternative the financial system. Such loss-sharing arrangemeans of adjustment available to the banks include ments have operated to preserve a segmented sysincreases (or decreases) in various instruments rec- tem by necessitating a gradual approach to dereguognized as tier 1 or tier 2 capital, such as subordi- lation in which adequate time must be given to nated debt or perpetual preferred stock. assess accurately the effect of each liberalization Overall, available data and anecdotal evidence measure before the undertaking of further reform. suggest that the response of the Japanese city banks An example of this approach is the fifteen-year to binding capital requirements has been the fol- process of interest rate deregulation shown in lowing. First, the banks cut back on the allocation table 2. of capital to support money market activities. Sec- Within this framework, regulatory barriers to ond, pricing objectives for domestic and interna- entry have been claimed as the right of protected tional credits were increased to improve returns on firms.12 The negotiation of compensation for the equity and assets. Third, the banks began to reduce removal of various restrictions on intersectoral their lending to, and sell off their stock holdings of, competition has added significantly to the difficul- Japanese firms with which they did not expect to ties of reforming the Japanese financial structure.13 14. Relationship between Japanese stock prices and Basle capital ratios of Japanese city banks1 12. Ronald Dore has observed that a general feature of Japanese Average Basle capital ratio (percent) industry policy has been that it is not ruthless. He cites as an example the prolonged and fruitless efforts to end a loom registration system implemented in the 1950s to control capacity in the Japanese weaving industry. See Ronald Dore, Taking Japan Seri- March 1992 ^ —9 ously: A Confucian Perspective on Leading Economic Issues (Stan- B ford University Press, 1987), p. 202. B* 13. James Home has examined how Japanese financial regula- C* tory policy is formulated and implemented. Through case studies, he illustrates a set of relevant idiosyncrasies, which stem from the C Japanese institutional and political framework. Nevertheless, he 7 admonishes the reader to be prepared to recognize "that there is much in the process of regulatory policy-making in Japan's finan- 1 1 1 1 1 1 11 cial markets which policy-makers and participants in other coun- 12,000 16,000 20,000 24,000 28,000 tries will recognize." See James Home, Japan's Financial Mar- Nikkei Stock Average kets: Conflict and Consensus in Policy-making (George Allen & 1. Values other than A are authors' estimates. Unwin, Sydney, 1985). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

592 Federal Reserve Bulletin • August 1992 For example, the financial reform package adopted national markets by regulatory actions designed to by the Japanese government in 1992 does not call accommodate and encourage the internationalizafor the provision of stock brokerage services by tion of Japanese finance. In the late 1980s, the Japanese banks, in contrast to the current U.S. character of such competition was influenced by regulatory regime, under which U.S. banks are the substantial increase in financial wealth conpermitted to control firms that provide stock trolled by the banks in the form of unrealized brokerage services. This omission in the Japanese capital gains on stock holdings. In our view, imporreform package was strongly influenced by con- tant spillover effects from such competition cerns about the adverse consequences of bank entry among Japanese banks have been observed in varion the competitive positions of the smaller securi- ous financial markets. For example, the low returns ties firms, which have been undergoing a period available on traditional bank lending associated of financial weakness. Several of the measures that with the expansion of Japanese banks provided are contained in the Japanese government's finan- incentives for U.S. banks to specialize in the cial reform package are listed in table 3. In most processes of credit origination and financial cases, Japanese financial companies currently oper- engineering. ating in various sectors would be allowed to enter In summary, the changeover to capital-based reginto new financial activities only through separate ulation of Japanese banks should, in itself, encourde novo special-purpose subsidiaries. However, the age important changes in the structure of domestic package contains an exception that would permit a and international banking markets. Under this bank to acquire a failing securities firm and con- regime, unless the Japanese stock market were to tinue its full-brokerage operations. rise significantly over the next few years, the capac- In the past, Japanese banks have been encour- ity of the Japanese banks to continue to implement aged to compete for regulatory privileges. In the change in a deliberate and considered fashion will 1980s, such competition among Japanese financial be reduced. In particular, in such circumstances it institutions appears to have been channeled to inter- is likely that Japanese banks will place more emphasis on reviewing their roles as financial monitors of Japanese nonfinancial firms.14 3. Japanese financial reform measures1 Type of institution Proposed reform SELECTED REFERENCES City banks Authorization to establish securities and trust bank subsidiaries Prohibition against subsidiaries' Bank for International Settlements. Changes in the engaging in equity brokerage Organisation and Regulation of Capital Marservices Prohibition against trust bank sub- kets. Basle: Monetary and Economics Departsidiaries' engaging in pension fund ment of the Bank for International Settlements, management, loan trust, anc fund trust business during a transition 1987. period Dore, Ronald. Taking Japan Seriously: A Confu- Long-term credit banks Authorization to establish securities cian Perspective on Leading Economic Issues. subsidiaries, which will also be Stanford, Calif.: Stanford University Press, 1987. prohibited from engaging in equity brokering Federation of Bankers Associations of Japan Authorization to convert to, or merge (Zenginkyo). The Banking System in Japan. with, commercial banks, while maintaining exclusive rights to Tokyo: Zenginkyo, 1989. issue debentures during a transition period Trust banks Authorization to establish securities subsidiaries, which will be prohibited from engaging in equity brokering 14. For a more extended discussion of the possible significance Securities companies Authorization to establish com- of differences in national financial structures, see Allen B. Frankel mercial banking subsidiaries and John D. Montgomery, "Financial Structure: An International Perspective," Brookings Papers on Economic Activity, 1:1991, 1. Includes legislative and administrative measures. pp. 257-97. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Deregulation and Competition in Japanese Banking 593 Frankel, Allen B., and John D. Montgomery, "Overseas Markets Beckon," International "Financial Structure: An International Perspec- Financing Review, issue 875 (April 27, 1991), tive," Brookings Papers on Economic Activity p. 6. 1:1991, pp. 257-97. Semkow, Brian Wallace. "Japan's 1992 'Big Bang' Home, James. Japan's Financial Markets: Conflict and Other Financial Reform," Journal of Interand Consensus in Policy-making. Sydney: national Banking Law, March 1992, pp. 89-96. George Allen & Unwin, 1985. Shigehara, Kumiharu. "Japan's Experience with Horvitz, Paul M. Monetary Policy and the Finan- Use of Monetary Policy and the Process of cial System. 3d ed. Englewood Cliffs, N.J.: Liberalization." Paper presented to the Pacific Prentice-Hall, 1983. Region Central Banks' Conference on Domestic "IADB Readies First Floating-Rate Note," Interna- Monetary Policy sponsored by the Reserve Bank tional Financing Review, issue 877 (May 11, of Australia, October 12-13,1990. 1991), p. 4. Suzuki, Yoshio. Money, Finance, and Macroeco- Morimoto, Tetsuya, and William J. Seiter. "Japan's nomic Performance in Japan. New Haven, Financial System Reform: Stalled on the Conn.: Yale University Press, 1986. Tracks," International Financial Law Review, Viner, Aron. Inside Japanese Financial Markets. September 1991, pp. 30-33. Homewood, 111.: Dow Jones-Irwin, 1988. Osugi, Kazuhito. "Japan's Experience of Financial Deregulation since 1984 in an International Perspective." Economic Papers 26. Basle: Bank for International Settlements, January 1990. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

594 Industrial Production and Capacity Utilization Released for publication June 16 trial equipment, rose noticeably last month, as a strike ended at a major producer. At 108.8 percent The index of industrial production increased of its 1987 annual average, total industrial produc- 0.6 percent in May, a rate slightly faster than in the tion in May was 2.2 percent above its year-ago preceding three months. Gains in motor vehicles, level. Total industrial capacity utilization rose their parts, and related materials contributed to the 0.3 percentage point in May, to 79.0 percent. May increase. In addition, the output of construc- When analyzed by market group, the data show tion and mining machinery, a component of indus- that the output of durable consumer goods in- Industrial production indexes Twelve-month percent change Twelve-month percent change Materials V^^^ I I I L_ I Nondurable manufacturing Durable manufacturing 1987 1988 1989 1990 1991 1992 1987 1988 1989 1990 1991 1992 Capacity and industrial production Ratio scale, 1987 production = 100 Ratio scale, 1987 production = 100 —— TToottaall iinndduussttrryy 140 — Manufacturing 140 CCaappaacciittyy -- Capacity - 120 120 100 ~ ^ - 100 Production 80 Production — 80 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Percent of capacity Percent of capacity Total industry Manufacturing 90 Utilization Utilization 80 70 J L J I L J I L 1980 1982 1984 1986 1988 1990 1992 1980 1982 1984 1986 1988 1990 1992 All series are seasonally adjusted. Latest series, May. Capacity is an index of potential industrial production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

595 Industrial production and capacity utilization Industrial production, index, 1987= 1001 Percentage change Category 1992 19922 May 1991 to Feb/ Mar.' Apr.r MayP Feb/ Mar/ Apr/ May? May 1992 Total 107.2 107.7 108.1 108.8 .5 .5 .4 .6 2.2 Previous estimate 107.2 107.6 108.2 .5 .4 .5 Major market groups Products, total 108.1 108.6 109.0 109.7 .5 .5 .4 .7 1.9 Consumer goods ... 108.8 109.5 109.8 110.4 .6 .6 .3 .6 3.6 Business equipment 121.0 121.7 122.9 124.5 .9 .5 1.1 1.2 2.3 Construction supplies 96.0 96.6 96.9 97.3 .6 .6 .3 .4 1.6 Materials 105.8 106.3 106.8 107.3 .5 .5 .5 .5 2.6 Major industry groups Manufacturing 108.1 108.6 109.0 109.8 .6 .4 .4 .7 3.0 Durable 107.0 107.1 107.7 109.1 1.1 .2 .5 1.2 2.2 Nondurable 109.6 110.3 110.7 110.8 .1 .7 .3 .1 4.1 Mining 98.4 97.9 99.1 98.8 .5 -.5 1.2 -.3 -1.4 Utilities 106.4 108.1 107.7 107.3 -.4 1.6 -.4 -.4 -3.7 Capacity utilization, percent MMMEEEMMMOOO CCCaaapppaaaccciiitttyyy,,, pppeeerrr--ccceeennntttaaagggeee 1991 1992 ccchhhaaannngggeee,,, AAvveerraaggee,, LLooww,, HHiigghh,, MMMaaayyy 111999999111 11996677--9911 11998822 11998888--8899 tttooo May Feb/ Mar/ Apr/ MayP MMMaaayyy 111999999222 Total 82.1 71.8 85.0 79.1 78.3 78.5 78.7 79.0 2.4 Manufacturing 81.4 70.0 85.1 77.8 77.4 77.5 77.7 78.1 2.7 Advanced processing 81.0 71.4 83.6 77.3 76.1 76.2 76.3 76.8 3.1 Primary processing . 82.3 66.8 89.0 79.0 80.4 80.9 81.1 81.4 1.7 Mining 87.4 80.6 87.2 87.6 85.7 85.3 86.4 86.1 .4 Utilities 86.7 76.2 92.3 86.7 82.2 83.4 83.1 82.7 1.1 1. Seasonally adjusted. r Revised, 2. Change from preceding month to month indicated. p Preliminary. creased substantially in May, the fourth successive turn of the year, it has nearly regained its level of month of increase; although these gains have re- last fall. Most major groups of durable materials sulted, in large part, from the higher output of autos posted strong gains last month. Among nonduraand light trucks, the May increase also reflected a bles, the production of textiles and chemicals also jump in the production of other durables, such as rose, but a decline in the production of paper mateappliances and furniture. By contrast, the output of rials offset these gains. The output of energy matenondurable consumer goods, which edged lower in rials edged down last month. May, has been little changed, on balance, in recent When analyzed by industry group, the data show months. The production of business equipment that manufacturing output increased 0.7 percent in excluding motor vehicles advanced 1 percent last May and that factory utilization increased 0.4 permonth; besides the rise in construction and mining centage point, to 78.1 percent. The level of utilizamachinery, the output of most other components of tion has risen more than 1 percentage point since industrial equipment as well as the output of com- January but was still about 3A percentage point puters rose. The output of construction supplies below its recent high last September. Utilization expanded for the fifth consecutive month but is at primary-processing industries has advanced steadily in recent months and in May recovered to only about 1Vz percent above its depressed level of its recent high. Utilization at advanced-processing a year ago. The production of materials continued industries rose 0.5 percentage point in May after to increase in May at its recent pace of V2 percent having edged up in each of the two preceding per month; after having been curtailed around the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

596 Federal Reserve Bulletin • August 1992 months; the greater part of these monthly gains The production at mines decreased 0.3 percent in reflected increases in motor vehicles and parts, May despite a strong gain in coal extraction, and nonelectrical machinery, and furniture. Despite the output at utilities fell 0.4 percent. these gains, the operating rate for advancedprocessing industries in May remained about 1 percentage point below its September level. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

597 Statements to the Congress Statement by John P. LaWare, Member, Board in 1988. Since then, the number of failures has of Governors of the Federal Reserve System, declined to 127 banks last year and to 55 banks before the Committee on Banking, Housing and during the first five months of this year. But the Urban Affairs, U.S. Senate, June 10, 1992 aggregate assets of failed banks have remained high, at $66 billion in 1991 and $13 billion thus far Mr. Chairman and members of the committee, I in 1992. am here today to discuss the condition of U.S. Trends for troubled institutions (those rated commercial banks, the Federal Reserve's recent CAMEL 4 or 5) are also disturbing. Their numefforts to implement new banking legislation, ber remains stubbornly high, and their assets and, more generally, the Federal Reserve's ef- continue to grow. More than 1,000 problem forts to promote a sound banking system. As the banks remained at the end of 1991. That level is committee knows, the industry has experienced roughly five times the level of a decade ago, exceptional stress in recent years, and many although it is down substantially from its 1987 institutions continue to face rough times ahead. peak. Problem bank assets, at approximately Recent performance, however, offers genuine $600 billion, are also unacceptably large and encouragement that conditions in the banking represent about 16 percent of total banking assystem are beginning to improve. sets. These recent years have also been challenging One result of these troubled times has been the for the bank regulatory agencies, as we have depletion of the FDIC's Bank Insurance Fund assessed the industry's condition, developed cor- (BIF), after reserving for anticipated losses. rective actions, and implemented legislative ini- These threats and the industry's current conditiatives. The period has also been a time in which tion make it likely that the fund will remain under we have placed great importance on interagency great pressure for some time to come. That coordination, as I will point out in my comments projection is behind the FDIC's recent determitoday. nation that higher insurance premiums are I will begin by discussing the recent perfor- needed to meet the public policy mandate that mance and outlook of the banking system; I will the industry repay Treasury borrowings and rethen address recent supervisory actions of the build the fund balance. Federal Reserve, including actions taken to im- The problems of banks in the past few years plement the Federal Deposit Insurance Corpora- can be traced to conditions that prevailed a tion Improvement Act of 1991 (FDICIA). I will decade or more ago. Many of the industry's then comment on the focus of banking legislation largest institutions entered the early 1980s holdthat the Board believes is still needed. ing high levels of weak developing-country loans and facing growing competition from thrift institutions and foreign banks, as well as from secu- CONDITION OF U.S. BANKING SYSTEM rities firms that were helping prime borrowers sidestep their banks. In addition, banks in the During recent years, conditions in U.S. commer- Southwest were holding deteriorating energycial real estate markets and throughout the gen- sector credits and searching desperately for an eral economy have placed great strains on much important new source of earnings. These banks, of the domestic banking system. From 1985 to along with many others, sought to find better 1991, for example, nearly 1,200 commercial profits through increased lending in the commerbanks failed, reaching a peak of 220 bank failures cial real estate sector. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

598 Federal Reserve Bulletin • August 1992 By the middle of the decade, however, South- portfolio. As a result, the volume of nonperformwest real estate values had plunged, related loans ing assets at the twenty-five largest banks inwere uncollectible, and banks throughout the creased $13 billion, or 40 percent, during the tworegion were beginning to fail. Weak commodity year period 1990-91, even after sharply higher and land prices were contributing to the collapse levels of net charge-offs. of hundreds of small banks in agricultural com- Smaller banks have generally been less afmunities throughout the Midwest and compound- fected by commercial real estate conditions but ing pressures on the federal deposit insurance have not escaped without some problems of their fund. But in most other parts of the United own. Those banks with assets of less than $1 States, commercial real estate markets and re- billion incurred a smaller, but still sharp, increase lated bank lending remained strong, despite ris- of 17 percent in total nonperformings during the ing levels of office vacancy rates. That condition same period, with most of that increase attribreversed beginning in 1989, when economic uted to general weakness in the economy rather problems surfaced in New England. These prob- than to specific major events. lems worsened when the rest of the nation Over all, the industry's loan-loss provisions slipped into recession in the summer of 1990, climbed to nearly 1 percent of assets during each signaling the latest round in what has been the of the past three years (three to four times the most turbulent period for U.S. banks since the loss-provision rate of the 1970s and early 1980s) Great Depression. and reached $33 billion last year. That provision- The industry's average return on assets, ing, however, enabled the industry to maintain roughly 0.50 percent during each of the past three loss reserves at more than 80 percent of nonacyears, is about 10 to 20 basis points below levels cruing loans during the past two years and at a generally seen during the past two decades and relatively high 1.6 percent of assets. reflects the depth of these problems. Recent profits were even worse for many of the largest institutions and those in the Northeast and other OUTLOOK areas in which recent commercial real estate problems took their greatest toll. Recently, there have been encouraging indica- Overbuilding through much of the 1980s, com- tions that conditions in the industry are beginning bined with weak demand recently, produced the to improve, even though commercial real estate greatest contraction of real estate values in the markets in many areas remain depressed. Most United States since the 1930s. After the earlier encouraging, perhaps, are indications that the problems in the Southwest, severe loan quality volume of problem loans has started to trend problems emerged in New England and spread down, as suggested by recent quarterly results. quickly along the East Coast, adversely affecting Whether that pattern will continue into the imthe Mid-Atlantic and Southeast regions. Weak- mediate future is unclear. nesses subsequently emerged in the Far West, The improvement, in large part, reflects the especially in the southern part of California. process of working problem loans through the Even the midsection of the United States, whose balance sheet as banks restructure, charge off, or experience with earlier problems helped to avoid write down their weak assets. With real ecothe worst excesses, has been affected by declin- nomic growth having resumed and the burden of ing commercial real estate values. Much of the developing-country loans all but gone for virtu- Southwest seems to continue a slow recovery ally all U.S. banks, the industry should be able to from its own mid-decade debacle, but the full focus even greater attention on the resolution of effect of problems in southern California is still its other problems, commercial real estate credits ahead. in particular. Beyond the real estate sector, the earlier Lower interest rates have helped to improve buildup in corporate leveraging together with the the condition of most banks, as funding costs sluggish economy also contributed to the general declined faster than revenues. As a share of total deterioration in the quality of the industry's loan assets, net interest income on a fully tax-equiv- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 599 alent basis increased from 3.55 percent in 1990 to directing to strengthening their underwriting an average of 3.71 percent in 1991 and marked its standards and pricing policies. That developfourth highest level in more than twenty years. ment, combined with an increased emphasis by This gain translates into nearly $5.5 billion of bank supervisory agencies on more frequent onadditional pretax net interest income for the site examinations, should have positive future banking industry. Lower rates also contributed results on the quality of banking assets. to nearly $3 billion of gains last year from the The stock market's assessment of these factors industry's nontrading account securities and to a has been very positive in the past year. During substantially larger volume of unrealized gains in 1991, common stock prices of the forty-seven the value of its investment portfolio. Since then, publicly traded companies among the top fifty although securities gains remained strong in the rose on average more than 60 percent. Although first quarter of 1992, much of the unrealized many bank stock prices started from exceptionportion has been lost. ally low levels, their average gain dwarfed the A good part of the industry has also been impressive 30 percent increase recorded last year restructured to generate additional revenues and by the S&P 500. So far this year, bank share reduce operating costs. Intramarket mergers, prices have continued to outperform the general such as those recently seen in New York and market. California, were undertaken in large part to gain By another measure, the average ratio (both increased operating efficiencies that manage- equity weighted and not equity weighted) of ments believed could be generated. So far, the market-to-book values of the common share stock market seems to agree. Other institutions, prices of these forty-seven largest publicly traded not involved in mergers, have implemented cost- companies stood at more than 150 percent at the reducing measures as well and have also received end of last month. That ratio was nearly twice the generally favorable market reviews. ratio at the end of 1990. Taking advantage of these Average capital ratios for commercial banks improvements, the top fifty companies alone last are higher now than they have been in many year issued a record $7 billion of equity and years, despite the industry's problems. Bank another $375 million of convertible debt. equity at the end of 1991 was nearly 6.8 percent Although banks are by no means "out of the of industry assets, its highest level in more than woods," signs are appearing that the worst may twenty years and virtually a full percentage point be behind them. Some banks, of course, continue higher than it was at the end of 1980. On a to have big problems and are likely to keep the risk-weighted basis, the industry's average total number of bank failures and their costs to the capital ratio of 11.1 percent at year-end 1991 was FDIC at a high level. On balance, however, the more than 3 percentage points above the mini- broader outlook for the U.S. banking system mum ratio required for the end of 1992. Impor- seems brighter than it has been in several years. tantly, tier 1 capital (equity) was 9.7 percent of During the past three years, for example, the risk-weighted assets—more than double the min- commercial banking industry has charged off imum standard. More than 96 percent of all nearly $85 billion in losses, an exceptionally high BIF-insured U.S. commercial and savings banks rate, while at the same time increasing its equity now meet the minimum standard, and those more than $35 billion and boosting its loan-loss banks meeting the standard hold more than 90 reserves. That performance says much about the percent of the industry's assets. Although we industry's overall strength and resiliency and its may take some comfort from these figures, we ability to attract investor funds. should also emphasize that many institutions We should also not overlook the fact that, even need to have capital ratios in excess of mini- in the especially troublesome past few years, mums, given the overall level of risk associated many banks—including many large ones—have with their operations and loan portfolios. consistently performed well. During each of the The last important development I shall men- past four years, close to one-half of the industry, tion that bodes well for the industry is the holding 35 to 50 percent of banking assets, increased attention that bank managements are earned a highly respectable return of 1 percent or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

600 Federal Reserve Bulletin • August 1992 more on assets, and another 30 percent of the strengthen their credit standards—a process that, industry earned a return of at least 0.50 percent. in some cases, may have gone too far. Whether In fact, sixteen of the fifty largest U.S. bank caused by overly critical supervision or by bank holding companies earned a return of 1 percent managements that were too conservative, the or more last year, and that group expanded to tightening may have had counterproductive retwenty-four during the first quarter of this year. sults, contributing to a so-called credit crunch The progress many institutions have made to and perhaps prolonging the recession in some strengthen their credit standards and reduce regions of the United States. costs should lead to further improvements in I would like to cite several more specific years to come. supervisory and regulatory efforts. The first effort involves an interagency statement issued in February of this year on the proper use by banks RECENT SUPERVISORY INITIATIVES of so-called "high risk" derivative instruments— investments such as interest- or principal-only Your letter of invitation asked that I describe mortgage derivative securities. The position some of the recent actions taken by the Federal taken by the agencies was that such investments Reserve to ensure the health of the banking are generally to be considered unacceptable for system and to implement elements of FDICIA. I depository institutions unless the institution can would like to begin by saying that strengthening clearly demonstrate that the effect of the instruthe capital position of the banking system has ment is to reduce the institution's overall interest been an important and long-term objective of rate risk. bank supervision at the Federal Reserve, and, as The Board has also participated actively with previously mentioned, significant progress has other U.S. bank regulatory agencies and with been made in that area. agencies abroad under the auspices of the Bank As part of its administration of the Bank Hold- for International Settlements (BIS) to administer ing Company Act, the Board has made clear its and enhance the international risk-based capital general policy that institutions seeking approval standard. This ongoing effort, which began in for expansionary applications must be soundly 1989 after the adoption of the risk-based stancapitalized and that mergers and acquisitions dard, has required significant coordination reshould result in even stronger and better capital- garding interpretations of existing standards for ized institutions. That policy has prompted many credit risk. It has also involved considerable banks and bank holding companies to raise addi- effort to develop measures dealing with interest tional capital, either for the direct purpose of rate risk, foreign exchange trading, and netting completing proposed transactions or, more gen- arrangements. erally, to improve their condition before present- During much of the past year, the international ing their applications. In that sense, I believe the effort regarding interest rate risk has been di- Board's policy played an important role in the rected toward "converging" the capital stanrecord volume of new equity issued by major dards of securities firms with new standards that banking companies last year. would cover the trading activities of commercial In other activities, the Federal Reserve contin- banks. Currently, the participating banking and ues to emphasize the importance of frequent, securities regulators expect to submit a joint on-site, full-scope examinations. We have long proposal for public comment on that effort this believed that only through this process can su- year. pervisors adequately evaluate credit quality and Domestically, the staffs of the Federal Reserve standards, operating procedures, and other as- and the other U.S. banking agencies have been pects of banking that are essential to the sound developing their own approach to measuring operation of a bank but that are difficult, if not interest rate risk that could apply to all U.S. impossible, to assess through offsite reports. banks—not only to the "internationally active" As part of this process, the Federal Reserve banks that would be directly covered by the and the other agencies have been urging banks to efforts under way at the BIS. In its still-prelimi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 601 nary form, this "domestic" approach, although Currently, the Board is also preparing for less complex and data intensive, is generally public comment a new Regulation F, Interbank consistent with measures being developed Liabilities, in connection with requirements of abroad. We expect that an interagency proposal section 308. This proposal would require that for measuring the interest rate risk of U.S. banks banks and savings associations insured by the will be issued for public comment in July. Sub- FDIC develop and implement internal proceject to those comments, we plan to rely heavily dures to evaluate and control exposures to other on that approach in meeting the interest rate risk depository institutions, including those arising requirements of FDICIA's section 305. from both credit and settlement exposures. As Staff members are also working diligently on drafted, it would establish outer limits of expomore than twenty other efforts to implement the sure, expressed as a percent of an institution's many provisions of FDICIA. On one important capital, that would generally be considered prumatter, the agencies are near agreement on the key dent. The Board expects to issue this regulation elements required to implement prompt corrective for comment later in June. action. A detailed proposal on the subject is being Regarding the Foreign Bank Supervision Encompleted and should be considered by the Board hancement Act, the Federal Reserve is in the proand issued for public comment later in June. cess of hiring additional examiners so that it can In April, the Board also amended its Regula- coordinate and conduct more frequent examinations tions O and Y to implement requirements of of U.S. offices of foreign banks, as directed by the section 306 of FDICIA dealing with loans to legislation. The Board has also proposed revisions insiders. Effective in May, these changes expand to its Regulation K to implement other provisions of certain definitions of insiders, impose limits on a the act requiring applications by foreign banks to bank's aggregate lending to insiders (including open U.S. offices and ensuring that they have adetheir related interests), and prescribe standards quate levels of supervision. for such extensions of credit. The rules generally The restrictions on Federal Reserve lending to limit total lending to insiders to 100 percent of the insured depository institutions that are undercapbank's unimpaired capital and surplus, with an italized or critically undercapitalized do not go exception limit of 200 percent for banks with less into effect until December 19, 1993. This delay is than $100 million of deposits. essential because the restrictions constitute a In May, the Board also approved for public significant change in lending policy; banking regcomment an advanced notice of proposed rule- ulators need time to put in place the enhanced making regarding the safety and soundness stan- supervisory powers contained in the act and use dards included in section 132 of FDICIA. Ap- them to strengthen the banking system and reproval from the other agencies should be duce the need for banks to resort to sources of forthcoming shortly, and a joint statement will be emergency liquidity. Nevertheless, the Federal issued at that time. We are also working jointly Reserve has moved as quickly as is prudently on ways to incorporate into capital adequacy possible to bring its administration of the disassessments a bank's concentration risk and in- count window into line with the broad public volvement in so-called "nontraditional" activi- policy direction of the act. To this end, we are ties, as mandated by section 305. working closely with the FDIC to resolve any In May, the Board approved for public com- failing institutions that may borrow from the ment a proposal to amend its Regulations H and window in a manner that protects the federal Y to prescribe standards for real estate lending. deposit insurance funds and, at the same time, The proposal, responding to requirements of avoids disorderly resolutions that could undersection 304, builds on earlier loan-to-value re- mine public confidence in the banking system. quirements that were liberalized by legislation in 1974 and removed with legislation in 1982. The PREFERRED LEGISLATIVE FOCUS principals of the other agencies have not yet formally considered the proposal, but it is ex- FDICIA contains many provisions designed to pected to be issued for comment this summer. promote a safer and more prudent banking sys- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

602 Federal Reserve Bulletin • August 1992 tem. By serving to offset moral hazard incentives Efforts to implement or enforce any stancreated by federal deposit insurance, prompt dards of safety and soundness are obviously corrective action is one provision that we feel important, but there are remedies other than should have beneficial results. The Board's statutory change. In particular, I would urge the expanded authority to supervise and regulate Congress to consider the resources, risks, and foreign banks operating in the United States is operating records of the thousands of small another positive aspect that should help to deter banking institutions in this country when draftproblems like those we have recently seen. ing new legislation. In many cases their re- Another clearly constructive provision is the sources are already stretched thin, and continrequirement that the banking agencies review ued legislative and regulatory burdens, the laws they administer in light of the regula- themselves, may threaten the viability of many tory burden those laws impose on the industry. community banks. This requirement is consistent with the Presi- Numerous elements of the legislation also dent's regulatory reform initiatives, an out- carry the risk of thrusting the regulators increasgrowth of which is a commitment by the federal ingly into the micromanagement of the banks banking agencies to coordinate their policies, they supervise. These provisions include tighter practices, and training even more closely than limits on interbank credits; expanded recordin the past. keeping and reporting requirements in areas such In this connection, I would assure the commit- as branch closings, auditing, small business tee that the Federal Reserve takes this provision loans, and truth in savings; and requirements that of FDICIA seriously and that it will conduct a regulators impose operational standards for emvigorous review and make recommendations for ployee compensation, internal controls, interest changes, as appropriate. We will, of course, rate exposure, asset growth, minimum earnings, continue to work to implement rules and regula- and market-to-book ratios. tions that are required by statute or that are Although, no doubt, there have been abuses necessary to ensure the safety and soundness of in some of these areas that should be stopped, banking institutions. The Board has long been the Board believes that the approach taken in concerned about the costs and burdens associ- section 132 is not the best solution. Indeed, ated with the accumulated effect of regulations. some provisions, such as setting standards for Without legislative relief, however, reducing reg- minimum earnings and for market-to-book raulatory burden significantly will be a much more tios, seem to be meaningless and to raise quesdifficult task. tions about how such standards could be logi- Although these provisions should prove help- cally enforced. At best, much of the legislation ful, the Federal Reserve believes the legislation will, in my view, simply increase costs to many is flawed in other ways. Most important, it banks. failed to provide relief from outdated structural The legislation also contains numerous incenrestrictions that prevent the U.S. banking in- tives for banks to behave more cautiously and to dustry from operating more efficiently. I will maintain higher capital ratios: the FDIC's mansay more on this later. It also piled increasing date to pursue least-cost resolutions, the tighter regulatory burdens on virtually all banking in- discount window lending rules, limits on the use stitutions, taking a shotgun approach to past of brokered deposits, and prompt corrective acproblem areas. tion. The provisions have positive features, but The banking agencies have long had examina- they also carry increased risks of worsening the tion procedures and guidelines covering most availability of bank credit as banks respond by topics mentioned in the legislation, and those shrinking in size and avoiding risks that are basic materials are available to the industry. The agen- to banking. In some respects, they could also cies also typically review a bank's policies and increase the risk of liquidity problems for banks, procedures regarding credit underwriting, loan as uninsured depositors seek safer havens at the documentation, and other activities when they first sign of trouble. examine banks on-site. Constraint on risk-taking may be needed, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 603 given recent experience, but the need for a vital CONCLUSION banking system must also be recognized. While requiring banks to increase their capital posi- In closing, I would say again that the condition of tions, the legislation provides them with few the U.S. banking system appears to be improvopportunities for new revenue sources or for ing, although many problem situations of greater reorganizing or expanding in more cost-efficient or lesser severity remain to be resolved. In ways. particular, the FDIC's projection of the number In this connection, the Federal Reserve Board and size of banks that it expects to fail this year strongly urges the Congress to revisit fundamen- remains high, as do the figures for problem tal reforms involving the elimination of the institutions. An increased supervisory role, such Glass-Steagall Act and the McFadden Act. The as that embodied in the annual full-scope examstructure and activities of the financial industry ination requirements of FDICIA, should help are changing; new markets are developing and deter future problems, but as noted, supervisory expanding; and our banks must be allowed to oversight and regulatory burden can be taken too keep pace. Permitting the banks more freedom to far. At this point, the most positive step the operate more efficiently and to compete more Congress can take to improve the industry's effectively under prudent supervisory rules is the long-term outlook is to adopt more fundamental best way to maintain a safe and sound banking banking reforms that enable banks to compete system. more effectively both domestically and abroad.• Statement by Alan Greenspan, Chairman, Board government's failure to control increasing rates of Governors of the Federal Reserve System, of inflation. Indeed, some have voiced concern before the Commerce, Consumer, and Monetary that by making it easier for investors to live with Affairs Subcommittee of the Committee on Gov- inflation rather than treating it as a fundamental ernment Operations, U.S. House of Representa- problem, issuing indexed debt, on occasion, tives, June 16, 1992 could appear to mark official acceptance of continuing high inflation. This is not the situation I welcome this opportunity to discuss the poten- today. The U.S. economy has made considerable tial issuance of indexed bonds by the Treasury. progress toward price stability over the past This assignment touches on a wide array of decade, trimming the core rate of inflation to challenging analytical and policy issues, such as below 4 percent, and it appears poised to make the appropriate tax treatment of these bond ob- further advances. Instead, we are here today to ligations, the technicalities of these bond con- evaluate a proposal contending that continued tracts, the assessment of investors' likely interest progress in economic stabilization could be made in these novel instruments, and the conse- somewhat easier. That proposal is to use manquences for the conduct of monetary policy. agement of the Treasury debt to extract market Although I may not do justice to the range of readings on inflation expectations and real interdemanding questions confronting the Treasury in est rates and then to use those readings to aid the its deliberations on whether to issue indexed conduct of monetary policy. debt, I do intend to convey the Board of Gover- Essentially, the Treasury is being advised to nors' current assessment of these considerations. split a segment of its debt issuance into two parts. One part would be indexed to consumer prices, and one part would not. The yields on A PROPOSAL ON INDEXED DEBT bonds that protect purchasing power could be considered measures of "real" interest rates. Enthusiasm for indexation—whether of wages, Importantly, the gap between the yields on two entitlements, government debt, or the tax sched- issues of comparable maturity but differing proule—quite often may be expected to echo a tection against inflation could be viewed as a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

604 Federal Reserve Bulletin • August 1992 market-based assessment of inflation expecta- nent incorporates premiums for a variety of risks tions and the risk premium associated with infla- assumed by the investor. For a U.S. Treasury tion instability. security denominated in dollars, default risk is I commend the subcommittee's efforts to negligible. However, because inflation is unprebroaden the range of indicators examined in dictable, a chance exists that indexed and uninanalyzing economic events and setting policy. dexed debt will provide different payments over For my own part, I am attracted by the prospect time to investors. As a result, the market will of opening a window on the market's view of the value them differently, even in real terms. The path for inflation that potentially could provide uncertainty regarding the real return provided by readings of price pressures being built into wages the unindexed debt drives a wedge between the and of real interest rates influencing spending yields on indexed and unindexed bonds in the decisions. The market provides many signals form of different risk premiums, which may vary about the future in its current pricing of assets, unpredictably over time. Thus, the differential in and an increased menu of indicators, in principle, yields likely will not serve as a pure measure of may offer a wider panorama of what is to come. inflation expectations. Still, because risk premi- In a similar vein, it is helpful at times, for analytic ums with rare exceptions are positive, the differpurposes, to disentangle the movements of the ential is almost always at least as large as infla- Treasury yield curve into the path expected by tion expectations. That is, the market would tend market participants for future one-year interest to delineate an upper bound on its prospects for rates. inflation. However, those forward-rate measures are im- Second, to implement some measure of properfect because risk premiums built into financial tection from inflation to investors, the Treasury returns confound attempts to take literal readings must select a single price index as the basis for on the expected future. Some of the same prob- that compensation and be confident that no siglems may confront analyses using indexed debt nificant revisions will be made to the referenced to gauge inflation expectations. Moreover, price index. Most likely, measurement issues are changing the composition of federal debt issu- not much more difficult in this regard than in the ance is not a matter to be taken lightly. With the construction of cost-of-living adjustments for vast scale of Treasury indebtedness, interest wages and benefits, and the not seasonally expense now absorbs almost as large a share of adjusted consumer price index will probably fit our limited tax resources as does discretionary the bill. However, all price indexes are imperfect domestic spending. Any proposal that has an because of distortions and limits to their coverimpact on Treasury financing costs must clearly age. To the extent that the index used by the demonstrate that benefits exceed costs by a Treasury did not adequately capture potential comfortable margin. investors' cost of living, the estimate of the real interest rate would be comparably affected. Third, the experts have to give careful consid- THE SIGNALS FROM INDEXED DEBT eration to tax treatment. Before-tax nominal returns on coupon-bearing indexed and unindexed A series of hurdles must be overcome before instruments may well have to differ to pay the issuance of indexed debt moves from a promising same after-tax compensation to investors. Bealternative to a useful policy instrument. First cause indexed debt provides protection of prinand foremost, rigorous study is required to un- cipal, the Internal Revenue Service would likely derstand exactly what to read into the simple require investors to impute any increase in the difference in yields between nominal and real nominal value of the principal as part of current debt. The yield on a nominal Treasury debt income, as is the precedent with zero-coupon instrument comprises three elements: a real in- securities. Thus, an investor in indexed debt may terest rate, an inflation premium that attempts to be called upon to report income not yet paid in adjust for expected changes in purchasing power cash. In this regard, some have suggested that over time, and a risk premium. This last compo- the Treasury issue zero-coupon securities, both Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 605 nominal and real, to prevent indexed debt from payments that are tied to wages or prices. Inbeing disadvantaged and to make comparisons of dexed Treasury securities could permit those yield differentials transparent. managers to match more accurately their de- Even if cash flow considerations favor unin- ferred liabilities of predictable real but uncertain dexed debt, rough estimates of the tax effects on nominal value. Of course, not all investors need, the difference between real and nominal yields or would be willing to pay for, purchasing power are calculable for the average investor, and protection. For some hedging purposes, nominal hence approximate adjustments can be made. liabilities must be matched with nominal assets. However, of greater importance, those adverse Moreover, the Treasury now offers investment cash flow implications of zero-coupon securities possibilities that provide a rough measure of now or indexed debt in the future likely render compensation for inflation. The simple and expethese instruments less attractive to some classes dient technique of rolling over six-month Treaof investors. If holders of indexed debt are drawn sury bills every six months provides a stream of from a narrow segment of the investing populace, returns that has moved fairly closely with inflathen the real rates and implied inflation expecta- tion. tions derived from those instruments may not Putting aside policy considerations, the private reveal economy wide sentiments. sector may receive direct benefits from the public Under those circumstances, the Treasury may example of indexed issuance. The yields on have to offer an elevated real return to place its Treasury securities serve as benchmarks for priindexed debt issue relative to that expected from vate rates around the world. With direct quotes its nominal debt, which is purchased by more on indexed debt available in the broad and liquid investors. A sufficiently elevated real rate may market for government securities, private issuers offset any gain to the Treasury by not having to may join in by issuing their own index-linked pay investors some compensation, likely in the debt tailored to their specific needs and in broadform of a positive risk premium for inflation ening the choice of assets available to investors. expectations on nominal debt. Thus, at a basic However, the private sector has seldom waited level, expected financing costs to the Treasury for the government to lead the way in financial and the value of the signal on real interest rates to innovation. The lack of private sector precedent the Federal Reserve depend importantly on in- for indexed debt as well as the short-lived expervestors' attraction to an untested instrument. iment in trading consumer price index futures on Before the fact, it is reasonable to assume that an organized exchange suggest that the prospects a family establishing a child's college fund or a for the success of an indexed issue must be couple planning for retirement may well pay weighed carefully. The thinness in that segment handsomely for inflation protection. After all, of the private market may simply indicate the movements in the general price index will cer- need for the public sector to lead by example, but tainly influence their anticipated future pay- it instead may raise questions about investor ments, and indexed debt represents an asset that demand and potential cost savings. at least keeps pace with the price index. How- If, after weighing these costs and benefits, the ever, by the historical record, many of these Treasury adopts an index-linked debt program, it long-planned expenses, such as tuition, do not will have to steer a difficult course in determining move in lockstep with general price indexes. the scale of operations. Splitting federal issuance These anticipated relative price shifts make in equal parts, in my view, trusts too much to the bonds that are tied to a general price index less uncertain demand for these instruments. The useful for hedging purposes. Also, the imputation large stakes involved, given the government's of taxes to the nominal increment to the value of need for funds, surely dictate that an experithe principal may make some investors wary of ment with indexed debt must be modest in size. indexed debt. Still, tax-favored investors proba- At the same time, issuance must be large enough bly would shift some of their investments toward to attract the trading interest that would ensure indexed debt. Many pension fund managers, for an active secondary market for indexed debt. instance, accumulate assets to meet long-term Any novel instrument initially would be less Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

606 Federal Reserve Bulletin • August 1992 liquid and ultimately may lead to some fragmen- need to tap the market, the government sustation of trading in government securities, per- pended its issue of index-linked debt. haps raising overall funding costs. The prices of indexed debt trading in a thin market would not necessarily convey a significant amount of useful IMPLICATIONS FOR MONETARY POLICY information about the economy as a whole. Without doubt, the substantial uncertainty facing monetary policymaking would be reduced some- FOREIGN EXPERIENCE what if the market were to provide a reliable measure of current inflation expectations. In- The foreign experience divides between those deed, the paired issuance of indexed and unindeveloping countries that were driven by neces- dexed debt at various maturities might make it sity to issue indexed debt as a means of attracting possible to offer some information on the marinvestors who were made wary by high inflation ket's expectations for the path of inflation well and a small number of developed countries that into the future. A timely and accurate reading on sought to save on the financing costs of the inflation expectations could considerably aid in government. It is difficult to find obvious lessons economic forecasting by casting some light on from the latter and more relevant group. In the incipient wage and cost pressures and by helping postwar period, the governments of several de- divide changes in nominal asset values into their veloped countries have issued debt securities expected real and price components. offering claims that were in some way linked to a Also, by routinely monitoring the markets for price index. Two industrial countries, the United the two debt instruments, the Federal Reserve Kingdom and Canada, issue bonds for which the could extract the market's evaluation of the principal and coupon amounts are tied to a consequences of policy operations. On occasion, consumer price index, although the Canadian the market's response to a policy action is diffiprogram is less than one year old with only one cult to interpret. A reading on real rates may issue on the books. In 1988 Australia suspended make it easier to parse out the reaction of longan ambitious indexed-debt program begun in term nominal yields, for example, into the effects 1985. on real rates, inflation expectations, and risk. British index-linked gilts (the equivalent of our But our concerns are not narrowly focused on Treasury debt obligations) were first issued in price developments and short-term operations. March 1981 with a maturity of fifteen years. Indexed debt would offer other, potentially use- Although the ownership of index-linked gilts was ful, information about the economy. Nearly all initially limited to pension funds, now all inves- descriptions of the economy assign important tors can hold those securities. Index-linked debt roles to real interest rates in influencing spending has grown more rapidly than total issuance, and investing decisions made by households and pushing its relative share to about one-fifth of businesses. As a result, economists, including government debt, and now trades in a relatively policymakers at the Federal Reserve, must asdeep and liquid market. Such trading provides sess the level of real interest rates when attempttimely quotes on real interest rates, although tax ing to explain or to project economywide develtreatment and an eight-month lag in inflation opments. A market for indexed debt would compensation complicate their interpretation. facilitate this process by continually updating our The Australian government indexed some of knowledge of investors' assessment of real interits bonds to the consumer price index between est rates and by perhaps signaling future changes 1985 and 1988 with the stated aim that diversifi- in income and economic activity. Although those cation might reduce interest costs. Those efforts, readings on real interest rates would help, monhowever, were set back by weak demand that etary policy would remain a difficult job because resulted in elevated real yields. Trading volume they would not reveal the appropriate level of in the secondary market was thin, and after real rates consistent with sustainable economic several successive budget surpluses reduced the growth. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 607 I share the view of most economists that no indicators and a considerable element of judgbetter mechanism exists for refining opinion ment in determining the stance of policy. and focusing attention on economic fundamen- Nonetheless, I am confident that we would use tals than a competitive market. Thus, I am new market-based indicators of inflation and real sympathetic to the notion that policymakers interest rates that would be made available by the should heed the messages from markets. But we issuance of indexed bonds. Such measures may not must remember that there are problems associ- mark the way as unambiguously as promised by ated with the issuance of indexed debt. The their most vocal adherents, but they would help. simple difference in unindexed and indexed returns may well convey more than a reading on inflation sentiment. At the least, economic the- CONCLUSION ory suggests that a time-varying risk premium enters the picture. Technical considerations For our part, the Federal Reserve retains responsimay bulk large as well. However, even an bility for long-run price stability and fully intends to imperfect reading on expectations could help us guard against reigniting inflation. That commitment understand some aspects of the behavior of the might be easier for us to effect or the public to private sector, though it in no way could sup- monitor should the Treasury issue indexed debt. plant our other efforts to forecast inflation. At Still, the benefits to monetary policy are not so times, market participants are wrong, perhaps obviously large as to outweigh any additional costs by stubbornly holding to outmoded lessons of to the taxpayers in financing Treasury debt. Thus, the past or by swinging too wildly with the the decision to issue debt that provides a measure of latest scrap of news. Even if indexed bonds inflation protection should remain in the domain of were issued, the Federal Reserve by necessity fiscal policy and be based primarily on the consewould continue to rely on a broad array of quences for total borrowing cost. • Statement by John P. LaWare, Member, Board NATURE OF BANKS' REGULATORY of Governors of the Federal Reserve System, BURDEN before the Subcommmittee on Financial Institutions Supervision, Regulation and Insurance of The U.S. banking system operates under a wide the Committee on Banking, Finance and Urban array of statutory and regulatory constraints im- Affairs, U.S. House of Representatives, June 23, posed on it for a variety of reasons. Some 1992 restrictions, such as those related to antitrust matters, reflect broad public policies to promote free markets and to prevent abusive business I am pleased to be here to address issues of practices that we have seen in the past. With only regulatory burden: how it might be eased for a few exceptions, these laws apply to businesses well-run depository institutions and what long- of all kinds. Other statutes and regulations, howterm regulatory and legislative efforts are ever, apply only to banks and other insured needed to keep excessive requirements in depositories because of the special and critical check. These hearings are extremely important functions they perform: (1) their role in the because, over time, the regulatory burden on payments mechanism, which facilitates pay- U.S. depository institutions has grown progres- ments by businesses, governments, and consumsively to the point where it may well threaten ers domestically and throughout the world; (2) the viability of the banking industry itself. Both their role as a chartered recipient of federally the Congress and the regulatory agencies must insured deposits providing a source of savings act now to stem the tide of ever-increasing and investment to the general public that is free regulatory burden and to explore ways of re- of the risk of default, up to $100,000; (3) their role ducing existing burdens. as important credit intermediaries for all seg- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

608 Federal Reserve Bulletin • August 1992 ments of society; and not least (4) their impor- Indirect costs may be even larger than direct tance as the principal vehicle through which the costs. Indirect costs include the reduced flexibilnation's monetary policy is implemented. ity of U.S. banks to react to changing conditions, Society's reliance on the banking system for their inability to engage in certain activities, and, these and other functions, combined since the importantly, the impairment of the industry's 1930s with the government's direct exposure competitive position relative to nonbank lenders arising from its deposit insurance guarantee, led and foreign banks. For example, by devoting to the belief that banks should be treated differ- substantial attention to new and frequently ently from most businesses and that they should changing statutes and regulations, bankers have be held to somewhat higher standards. As a less time and fewer resources to develop new result, banking is, and has long been, one of the markets and services or to improve their current most regulated industries. Without doubt, some activities. regulation is needed to minimize excessive risk- For years, informed members of the Congress, taking by banks, to protect financial markets and executive branch officials, the regulatory agenthe payments system, to minimize the govern- cies, scholars, and, certainly, bankers have been ment's exposure because it is the ultimate guar- concerned that the cumulative costs of regulaantor of bank deposits, and—through such bur- tions are placing the U.S. banking system at a dens as reserve requirements—to implement growing competitive disadvantage. In an envimonetary policy. ronment in which rapid technological change and However, during the past quarter-century or market innovations have caused thoughtful obso, the Congress has enacted additional financial servers to question whether banks in their preservices laws designed to achieve a variety of sent form can even survive, these regulatory other objectives. These laws are most frequently burdens are of much more than an academic or directed at protecting consumers, ensuring that passing interest. services are made available to all members of In the short run, the effect of an additional society, and enforcing tax and criminal laws. regulation is sometimes difficult to see; it is They typically impose specific and detailed re- implemented, and business goes on. In the long quirements on depository institutions that, in run, though, many regulatory and other costs are most cases, are not placed on mutual funds, passed on to bank customers in the form of lower insurance companies, and other nondepository interest rates on deposits and higher borrowing financial institutions. Obviously, this places de- costs, which have their own undesired effects on positories at a competitive disadvantage. the macroeconomy and the ability of the banking Although these statutes and regulations—both system to compete. We should recognize that in those related to safety and soundness and those our society banks, like other businesses, must related to other public policy goals—may address generate an adequate profit to survive and attract legitimate public policy concerns, they also im- the capital needed to support sound growth. pose significant costs, both direct and indirect, Indeed, costs not borne by their competitors on the banking system. The direct costs of regu- must be absorbed by banks either by operating lation include additional personnel and equip- more efficiently than their competitors or by ment to ensure compliance, the diversion of providing their shareholders with lower rates of management from other business activities, de- return. At some point, the markets will refuse to posit insurance premiums, and lost revenues accept lower rates of return, and the industry will from non-interest-bearing reserves maintained at wither for lack of investor funds. the Federal Reserve. The public at large also It may be possible to calculate some of these bears a substantial direct cost in the expanding regulatory costs with precision—such as the size of regulatory agencies to administer the threefold increase in deposit insurance premiums growing volume of laws and regulations. For since 1989, the opportunity cost of non-interestsome depository institutions, these latter costs bearing reserve requirements (which varies with fall at least partly on them through examination the level of interest rates), and the additional fees. personnel required to implement regulations. It is Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 609 impossible, however, to calculate the costs of the In other efforts, the federal bank regulatory industry's reduced flexibility and competitive- agencies work to coordinate common policies, ness, which are significant burdens, nonetheless. procedures, and reporting requirements through When considering costs, we should recognize the Federal Financial Institutions Examination that the overwhelming majority of bank manage- Council (FFIEC), partly to minimize confusion ments are committed to operating in a safe and and inconsistencies that might otherwise arise. sound manner, regardless of any government The council, which I currently chair, was estabrole. Accordingly, they would voluntarily adopt lished by the Congress in 1978 for that purpose. many policies and practices to that end without It is supported by a small staff, which has worked specific statutes and regulations, although per- diligently to accomplish its stated goals. haps not exactly in the manner we might pre- Earlier this year, the Board undertook a rescribe. It is in a bank's competitive interest, for view of all its regulations and reporting requireexample, to operate prudently, to provide financ- ments to determine which requirements are speing so its community can prosper, and to be cifically required by statute and which ones are honest and forthright with its customers. not. Those requirements not required by the But the fact is, the burden of bank regulation letter of the law were then reviewed more thorhas clearly grown, and the cost of that burden oughly to assess whether their costs are outhas, we believe, fallen disproportionately on weighed by public benefits, such as contributing smaller institutions, which do not have the re- importantly to the safety and soundness of the sources to acquire the specialized personnel to banking system or carrying out various congresensure compliance with the growing number of sional mandates. statutes and regulations. This review disclosed a number of areas in The time has long passed when the Congress, which the burden could be reduced further, and the banking agencies, and the intended beneficia- the Board is in the process of addressing those ries of regulation can think of the planned bene- situations. Examples include eliminating unnecfits of existing or future regulations as free. The essary applications and approvals for bank holdcosts and burdens may have already reached a ing companies and member banks and streamlindangerous level. Each cut, as it were, may only ing other application procedures. wound, but a thousand cuts may kill. The Federal Reserve is also participating with the other federal banking and thrift regulatory agencies in a "Regulatory Uniformity Project" that has the goal of promoting consistency and EFFORTS TO MINIMIZE THE BURDEN reducing regulatory burden to the minimum consistent with congressional and regulatory intent. The Board has had a formal program since 1978 To that end, the agencies will seek to apply to minimize regulatory burden on the financial uniform policies and regulations in their impleinstitutions that it regulates. This effort includes mentation of similar federal statutes. They will a review of both new and existing regulations to also attempt to combine, simplify, or eliminate help ensure that they do not impose unnecessary any duplicate or outmoded policies, procedures, requirements and that they fulfill current policy and regulations and seek to coordinate their objectives. This program, in turn, expanded efforts more closely with those of state bank and upon earlier efforts begun in 1975 that focused on thrift institution supervisors. reducing the industry's regulatory reporting In addition, under section 221 of the Federal costs and that continue in force today. Within the Deposit Insurance Corporation Improvement Federal Reserve System, new reporting require- Act of 1991 (FDICIA), the FFIEC is required to ments are reviewed and costs and burdens eval- review the policies and procedures and the recuated at several levels, including senior staff, ordkeeping and documentation requirements of System staff committees, bank technical advi- its member agencies that are needed to monitor sors, Reserve Bank presidents, and members of and enforce compliance with laws under their the Board. jurisdiction. The purpose of this review is to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

610 Federal Reserve Bulletin • August 1992 identify burdens that could be removed without investment banking powers for such banking diminishing compliance with or enforcement of organizations. As you know, the Board strongly consumer laws or endangering the safety and supports this approach. Well-capitalized banks soundness of insured depository institutions. rely far less on the safety net and thus should be This review is well under way. Only last week permitted a broader range of activity. Changing the FFIEC held public hearings on regulatory technology and the public benefits of wider comburden in Kansas City and San Francisco, and petition are important factors that led to the another hearing is scheduled here in Washington Board's support. In addition, the reward of exlater this week. A final report to the Congress on panded powers for well-capitalized, wellthis effort should be completed by the December managed banks would provide a powerful incen- 19 deadline specified in the act. tive for banks to build and maintain their capital and to be managed prudently. REDUCING THE BURDEN FOR WELL-RUN BANKS POTENTIAL TO REDUCE THE BURDEN I was asked to address how burdens could be Without prejudging the results of regulatory rereduced for well-run banks. The short answer is views currently under way, it seems clear that if that, given the objectives of each statute and regulatory burden is to be reduced significantly, regulation, a better case to be made is that legislative changes are needed. In the final analregulations with excessive net costs should be ysis, the Congress must revisit its general apeliminated or reduced for all. We cannot make proach to developing banking laws by establishthe case, for example, that Call Reports, exami- ing a more direct process for balancing the nations, basic prudential standards, reserve re- benefits of proposals with the burdens they imquirements, antitrust, truth in lending, truth in pose. savings, and the like should not apply only to In the Board's view, as I have noted, the net some banks if they apply to any. burden on all banks has increased significantly in However, some burdens could be lessened for recent years. As I have also noted, small banks well-run institutions. Risk-based deposit insur- find paperwork costs particularly burdensome ance premiums will distribute the cost of deposit because of staff limitations. Although excessive insurance more fairly among healthy and riskier burden should be lifted wherever it exists, perbanks, but there are practical limits to both the haps special consideration could be given to level and the range of premiums to ensure that reducing the volume of paperwork required of the burden on troubled institutions does not, in them. fact, hasten their demise. The application pro- To reduce ongoing regulatory burden more cess for acquisitions by bank holding companies generally, the Congress ought to take steps to offers another area in which requirements could avoid legislation that requires the imposition of differ on the basis of an institution's overall regulations at the microlevel. The growing pracstrength and condition. For example, a notice tice of stating specific standards in statutes or requirement could be substituted for formal ap- requiring, by law, that banks adopt detailed plications to conduct activities permitted by law operating procedures developed by the regulaand regulation, provided that engaging in such tory agencies eliminates flexibility, which is imactivities leaves the bank or other appropriate portant in a dynamic industry that is competing entity well capitalized. on an international basis. Sound supervisory More generally, in its reform proposals last standards can be developed and enforced withyear, the Treasury advocated that restrictions on out minutely detailed regulations in all areas. additional activities be relaxed for bank holding Let me use FDICIA as an example of congrescompanies with well-capitalized bank subsidiar- sionally imposed burdens of this kind. Virtually ies. These included nationwide interstate branch- every observer finds difficulty with the "triping, insurance sales and underwriting, and full wires" in section 132 that require banking agen- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 611 cies to establish standards specifying operating banks of all sizes about the heavy burden of procedures for information systems, loan docu- paperwork costs for the Community Reinvestmentation, minimum ratios of market-to-book ment Act—and those that will be involved in values, and the compensation of bank employ- impending requirements of the Truth in Savings ees. The Board understands the frustration of the Act. I have just returned from hearings in several Congress at providing federal borrowing to re- cities around the country and was particularly plenish the FDIC fund, but such a response impressed with the intensity of bankers' concreates more cost than benefit. Each of these cerns about the burden of these requirements— issues can be addressed in the supervisory pro- requirements that they note are not imposed on cess without the need for detailed implementing their nondepository rivals. regulations. Bankers also cite the frequency with which Similarly, reimposing deposit rate ceilings for statutes and regulatory changes are made. Expeless-than-well-capitalized banks runs the risk of rience with the Truth in Lending Act provides an distorting bank decisionmaking and creating ex- excellent example of this point. The Congress actly the inefficiencies that the Congress sought completely revamped the act in 1980 as part of to remove through the Depository Institutions other legislation, and the Board rewrote its Reg- Deregulation Committee. The same objectives ulation Z in 1981 to implement those changes. In intended by the reimposition of deposit rate 1984, the Congress changed the way credit card ceilings in FDICIA could be obtained, at much surcharges were to be treated under the law; in less cost and with greater flexibility, by a simple 1987 it added a requirement that variable interest congressional instruction that supervisors use rates be capped; and in 1988 it added two extentheir cease-and-desist powers whenever banks sive sets of new requirements, one dealing with offer deposit rates that are inconsistent with safe solicitations of credit card customers and the and sound banking practices. other dealing with home-secured lines of credit. Still another example is the FDICIA's require- Furthermore, at least three bills are currently ment that the Federal Reserve develop specific under consideration that would amend the Truth regulations imposing limits on interbank liabili- in Lending Act again this year. The sheer volume ties. Far less costly, and achieving the same of banking laws and regulations suggests that results, would be a general instruction that su- occasional amendments will be needed. But efpervisors evaluate carefully such interbank ex- forts to avoid what appears to bankers to be posures. Indeed, in drafting our regulation to constant changes would help a great deal. implement this provision of FDICIA, the Board Balancing the objectives that the Congress had has attempted, within the limits of the law, to in mind in enacting these provisions—and many focus on a bank's own evaluation of its interbank others—against their burden is not an easy task. risk. One potentially promising approach for resolving Although not a micromanagement issue, I such trade-offs may be to establish a nonpolitical would also note the unusually high reporting commission to address a broad range of banking burden imposed by FDICIA in the requirement issues and to offer guidance for legislative and that banks report detailed data on their loans to regulatory change. Such a commission could small businesses and farms. The Board and other have as a specific goal assessing both the domesgovernment agencies would find the information tic and international competitive position of U.S. helpful for policymaking, but bank accounting banks and the reduction of regulatory burden. systems simply do not lend themselves to providing this information easily. Yet the law requires that we collect these data from every bank CONCLUSION on the Call Report. Some balancing of burden and benefit is clearly called for in this provision. In closing, although the Federal Reserve strongly I might also add that regardless of their societal supports efforts to reduce regulatory burden, the benefits, one cannot help but be impressed with prospects for meaningful reductions seem small the frequency and intensity of complaints by without legislative relief. The most immediate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

612 Federal Reserve Bulletin • August 1992 step the Congress could take would be to repeal imposition of additional burden and sparing the certain segments of the FDICIA before they take industry the initial compliance costs. effect, provisions such as section 132, the effec- In the longer term, we welcome the congrestive reimposition of Regulation Q, limits on in- sional awareness of this issue that this hearing terbank liabilities, and the burdensome reporting confirms. We also look forward to assisting this of information not easily available to banks. In committee in the future to identify ways to that way, not only would the Congress be reduc- reduce regulatory burden and to avoid future ing the burden, but it would also be limiting the additions. • Statement by Griffith L. Garwood, Director, Di- Consumer Leasing Act requires that lessors provision of Consumer and Community Affairs, vide uniform cost disclosures about consumer Board of Governors of the Federal Reserve Sys- leases, including several in advertising. The Contem, before the Subcommittee on Consumer Af- sumer Leasing Act generally applies to leases of fairs and Coinage of the Committee on Banking, personal property that involve $25,000 or less Finance and Urban Affairs of the U.S. House of with a term of more than four months. A long- Representatives, June 24, 1992 term automobile lease is the most common type of lease covered by the act. Because lease- I am pleased to appear before this subcommittee purchase agreements are for less than four on behalf of the Board of Governors of the months initially—though they are often renewed Federal Reserve System to comment on the for a much longer period—they are not covered "Lease-Purchase Agreement Act," H.R.4497, by the Consumer Leasing Act. They are not which would amend the Consumer Credit Pro- covered by the Truth in Lending Act either, tection Act. I am the director of the Board's because they do not obligate (although they do Division of Consumer and Community Affairs. permit) the consumer to make payments equal to As you know, the Board is responsible for writ- the total value of the property and services ing regulations for several consumer protection involved to acquire ownership. statutes, including the Truth in Lending Act and In 1980, the Truth in Lending Simplification the Consumer Leasing Act. Act amended the credit provisions of the Truth in If H.R.4497 is enacted, it would, for the first Lending Act. No substantive statutory changes time on the federal level, impose disclosure and were made to the leasing provisions. After imsubstantive requirements on transactions known plementing the Truth in Lending Simplification alternately as "lease-purchase," "rental-pur- Act, however, the Board took the initiative in chase," or " rent-to-own" arrangements. Lease- investigating the need for simplification and repurchase transactions typically involve short- form of the Consumer Leasing Act. Meetings term renewable rentals of property, for example, were held with various industry and consumer week-to-week or month-to-month rentals of tele- representatives to learn about industry developvisions or major household appliances. After a ments and to solicit comment on whether probcertain number of payments have been made, the lems existed with the present law and on what consumer becomes the owner of the leased prop- improvements might be made. Representatives erty. of the automobile leasing industry at that time The Congress enacted the Consumer Leasing strongly supported simplification of the disclo- Act in 1976 as an amendment to the Truth in sure scheme under the Consumer Leasing Act. Lending Act, based on findings that a trend Both industry and consumers had considerable toward long-term leasing existed as an alterna- interest in expanding the act to cover leasetive to purchasing certain consumer items on purchase transactions of the type subject to credit and that consumers were not receiving H.R.4497. Members of the Board's Consumer adequate leasing cost disclosures. Like the credit Advisory Council and other consumer group provisions of the Truth in Lending Act, the representatives were concerned that consumers, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 613 particularly those with lower incomes, were en- 3,500 complaints dealt with consumer leasing tering into these transactions without the benefit issues, and none of these complaints related to of adequate cost disclosures and perhaps without lease-purchase transactions. Information from appreciating how much they would have to pay the other federal regulatory agencies similarly over time to acquire ownership of the leased indicates a small number of consumer comgoods. Representatives from the lease-purchase plaints. Federal Reserve examiners have found industry for home appliances also supported ex- few violations of the act and regulation in exampansion of the law to cover rent-to-own transac- ining the limited number of state member banks tions and preferred a single federal scheme to the that are involved in consumer leasing. Little prospect of different treatment at the state level. interest has been expressed to the Board over the Thus, in the early 1980s, a commonality of inter- years by the banking industry, consumer groups, est existed in support of amending the act to other federal agencies, or the leasing industry in simplify existing disclosure requirements and to general concerning any continued need to pursue expand its coverage to include rent-to-own trans- simplification of the Consumer Leasing Act—one actions. of the essential elements behind the Board's As a result, in 1983 the Board sent to the initiative in 1983. Thus, little indication exists Congress proposed amendments to the Con- that the Consumer Leasing Act, which has been sumer Leasing Act that were intended as a in effect without change since 1976, is not workstarting point for congressional consideration of ing fairly efficiently. these issues. In seeking to simplify the existing With regard to lease-purchase legislation, consumer leasing provisions, the proposal de- most activity in this area over the past few years emphasized the disclosure of terms that were has been at the state level. More than thirty considered less useful in comparison shopping states now have lease-purchase laws that contain between leases and more likely to be included in various required disclosure terms and, in some the lease contract. In addition, the Board's 1983 cases, substantive law provisions. Many of those proposal added coverage of lease-purchase requirements are similar to the provisions in the transactions under the Consumer Leasing Act. current bill. Notwithstanding state law, certain The Board's proposal on lease-purchase trans- representatives of the lease-purchase industry actions addressed the primary concerns associ- continue to support federal legislation to cover ated with those transactions at the time. It pro- lease-purchase transactions. But, unlike the sitvided for the disclosure of six basic terms, uation in the early 1980s, it is unclear whether including the number and total amount of pay- consumer group representatives continue to supments a consumer needed to make to acquire port federal coverage. ownership of the leased property; a statement We have no doubt that disclosures to consumthat the consumer acquires no equity in the ers of the most important features of leaseproperty until the required payments have been purchase transactions are beneficial—as recogmade; whether the leased property is new or nized by the numerous state laws on the subject. used; and a brief mention of certain charges such These state laws may be sufficient. On the other as reinstatement and late payment and default hand, a uniform federal disclosure scheme for charges. The proposal also contained a provision lease-purchase agreements that provides key inthat regulated the advertisement of lease-pur- formation to consumers without causing a subchase transactions. Senate hearings were held in stantial compliance burden to lessors might July 1983 to discuss a bill that incorporated the prove beneficial, provided the various parties Board's proposal; however, amendments to the affected by such legislation can identify a genuine Consumer Leasing Act were never enacted. need for it. We think that the subcommittee Over the sixteen years that the Consumer should carefully consider these questions at the Leasing Act has been in effect, the Board has outset. received few formal consumer complaints re- If it appears that federal legislation should be garding leases covered by the act. For example, pursued, we would note that H.R.4497 goes since the beginning of 1991 only 15 of more than beyond the Board's original lease-purchase dis- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

614 Federal Reserve Bulletin • August 1992 closure scheme in several respects. For exam- the Congress choose to go forward on this matple, it adds additional disclosures about main- ter, it give strong consideration to whether the tenance duties and warranties. These Board would be the most appropriate agency to disclosures could have the effect of detracting implement rules for lease-purchase transactions. attention from the essential cost information We believe that the Federal Trade Commission, and would need to be explored. They also add a which would have enforcement authority over all disclosure of the "cash price" yet seem to of the affected entities, would be the more logical allow the lessor to set that price at any level— choice. which raises questions about the utility of the On a technical level, the Board questions why additional disclosure. At least ten state statutes section 3 (making certain "conforming amendhave this requirement, and we suggest that the ments" to the Truth in Lending Act) strikes subcommittee investigate how well this proce- various references to "consumer leases," "lesdure has worked. In addition, the Board has sors," and "lessees" that are found in the Truth generally not favored federal provisions con- in Lending Act, as consumer leases are—and cerning substantive contract matters—a signif- would remain under H.R.4497—subject to the icant number of which are contained in consumer leasing provisions found in chapter 5 H.R.4497—given the historical role of the states of that act. Moreover, we wonder whether it is in regulating such matters. the intention of this bill to amend the Truth in Despite the Board's 1983 proposal addressing Lending Act by eliminating statutory damages lease-purchase agreements, it is important to for violations of the consumer leasing provisions, recognize that the Federal Reserve has no first- as is the seeming result of section 3(e)(1)(C). hand experience with the subject. We simply We commend the chairman of this subcommitoffered our ideas as a complement to our initia- tee for calling this hearing on H.R.4497. We hope tive to simplify the consumer leasing provisions that it will bring some focus to any concerns in and as a starting place for congressional review. this area from both the industry and the con- The Board has no supervisory relationship with sumer interests and to the question of whether any entities that engage in lease-purchase trans- federal legislation is needed to regulate leaseactions. Consequently we suggest that, should purchase transactions. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

615 Announcements RUSSIAN-AMERICAN BANKERS FORUM • John Whitehead, Chairman of AEA Investors Inc., former Co-Chairman and General Partner of A major initiative to assist Russia in the develop- Goldman, Sachs & Co., and former Deputy Secrement of its banking and financial system infrastruc- tary of State. ture was announced on June 19, 1992, by Yuli Vorontsov, Adviser on Foreign Affairs to President The Russian co-chairman will be Mr. Vorontsov. Boris N. Yeltsin and Permanent Representative of The other Russian members of the Forum will be the Russian Federation to the United Nations, and named in the near future. The Forum will have a E. Gerald Corrigan, President of the Federal small secretariat in Moscow, which is in the pro- Reserve Bank of New York. cess of being established. There will also be a U.S. In response to a request by Russian President secretariat of the Forum, headed by Michele God- Boris Yeltsin, the Federal Reserve System, in coop- frey, Corporate Secretary at the Federal Reserve eration with the Financial Services Volunteer Corps Bank of New York. (FSVC), has agreed to a joint public sector-private The Forum will provide ongoing policy-level sector effort that will provide broad-based technical direction and support for working groups of U.S. assistance aimed at reform of the Russian banking experts, which, in collaboration with Russian and financial system. The FSVC is a private-sector experts, will provide direct "hands-on" technical organization that provides technical expertise in assistance and advice to Russia aimed at the crefinancial matters in emerging market economies. ation of the basic elements of a market-oriented As part of this initiative, a group known as the banking and financial system. Russian-American Bankers Forum has been cre- The first such group was formed in early May ated to spearhead the effort. The first meeting of the and has been working in Moscow since May 26. Forum will take place in Moscow on June 25-26, Their efforts are aimed at assisting the Russians in 1992. (1) the development of retail banking and payment Besides Mr. Corrigan, who will be the American services; (2) the development of an interbank marco-chairman, the other American members of the ket and a system for large-value third-party pay- Forum are the following: ments; and (3) the creation of a market for government securities. The working group currently in Moscow consists • Richard A. Debs, Chairman of R.A. Debs & of seventeen individuals drawn from the Federal Co. and former President of Morgan Stanley Inter- Reserve System, commercial banks, law firms, and national Incorporated. other organizations. The effort is being coordinated • John R. Opel, Chairman of the Executive by Frederick C. Schadrack, former Executive Vice Committee and former Chairman of the Board of President of the Federal Reserve Bank of New International Business Machines Corporation. York. Bruce J. Summers, Deputy Director, Divi- • David Rockefeller, Chairman of the Rock- sion of Reserve Bank Operations and Payment efeller Group, Inc., and Chairman of the Interna- Systems, Federal Reserve Board, has responsibility tional Advisory Committee and former Chairman for the subgroup handling the development of an of The Chase Manhattan Bank. interbank market and third-party money transfers. • Cyrus R. Vance, Presiding Partner of the law Robert W. Eisenmenger, former First Vice Presifirm of Simpson Thacher & Bartlett, former Secre- dent of the Federal Reserve Bank of Boston, is tary of State, former Secretary of the Army, and heading the subgroup on retail banking and payformer Deputy Secretary of Defense. ments, and Donald B. Reifler, former Managing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

616 Federal Reserve Bulletin • August 1992 Director of the Morgan Guaranty Trust Company, phase. Also, the Forum members may consider is heading the subgroup on the creation of a gov- other matters of mutual interest, including techniernment securities market. cal advice and support in areas such as privatiza- The first phase of the efforts of the working tion and direct investment. The meetings of the group is scheduled to be completed in time for the Forum will be informal and no communiques con- June 25-26 meeting of the Forum. The working cerning the Forum's discussions are expected to be group is expected to present recommendations to issued. • the Forum and suggest approaches for the next Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

617 Legal Developments FINAL RULE—AMENDMENT TO REGULATION Y part of the merger or consolidation of the bank with a subsidiary bank (other than a nonoperating sub- The Board of Governors is amending 12 C.F.R. Part sidiary bank) of the acquiring bank holding com- 225, its Regulation Y (Bank Holding Companies and pany, or the purchase of substantially all of the Changes in Bank Control) by streamlining certain assets of the bank by a subsidiary bank (other than procedural requirements in that rule to reduce unnec- a nonoperating subsidiary bank) of the acquiring essary regulatory burden. bank holding company, if— The revisions include: the publication of criteria to (i) the bank merger, consolidation, or asset purdetermine whether an application under the Bank chase occurs simultaneously with the acquisition Holding Company Act ("BHC Act") may be waived of the shares of the bank or bank holding comfor transactions involving certain bank mergers; an pany, and the bank is not operated by the acquirincrease in the size of nonbank companies that can be ing bank holding company as a separate entity acquired by a bank holding company under the other than as the survivor of the merger, consol- Board's 15-day expedited notice procedures; and an idation or asset purchase; increase in the relative size of nonbank assets that can (ii) the transaction requires the prior approval of a be acquired by a bank holding company in the ordinary Federal supervisory agency under the Bank course of business without prior Federal Reserve Merger Act (12 U.S.C. 1828(c)); System ("System") approval. (iii) the transaction does not involve the acquisi- Effective June 29, 1992, the Board is amending tion of any nonbank company that would require 12 C.F.R. Part 225 to read as follows: prior approval under section 4 of the Bank Holding Company Act (12 U.S.C. 1843); Part 225—Bank Holding Companies and (iv) both before and after the transaction, the Change in Bank Control acquiring bank holding company meets the Board's Capital Adequacy Guidelines (appendi- 1. The authority citation for part 225 continues to read ces A and B); and as follows: (v) the acquiring bank holding company has provided written notice of the transaction to the Authority: 12 U.S.C. 18170X13), 1818, 1831(i), Reserve Bank at least 30 days prior to the trans- 1843(c)(8), 1844(b), 3106, 3108, 3907, 3909, 3310, and action, and during that period, the Reserve Bank 3331-3351, and sec. 306 of the Federal Deposit Insur- has not informed the bank holding company that ance Corporation Improvement Act of 1991 (Pub. L. an application under section 225.11 is required. No. 102-242, 105 Stat. 2236 (1991)). 2. Section 225.12 is amended by redesignating para- 3. Section 225.23 is amended by revising paragraph graphs (d) heading and introductory text, (d)(1), and (f)(2)(i), and by republishing paragraph (f)(2) introduc- (d)(2) as paragraphs (d)(1) heading and introductory tory text, to read as follows: text, (d)(l)(i), and (d)(l)(ii), respectively, and by adding a new paragraph (d)(2) to read as follows: Section 225.23—Procedures for applications, notices, and hearings. Section 225.12—Transactions not requiring Board approval. (f) Expedited procedure for small acquisitions — * * * $ $ $ $ $ (d)(1) * * * (2) Certain acquisitions subject to the Bank Merger Act. The acquisition by a bank holding company of (2) Criteria for use of expedited procedure. The shares of a bank or company controlling a bank as procedure in this paragraph is available only if: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

618 Federal Reserve Bulletin • August 1992 (i) Neither the book value of the assets to be 1 percent of total deposits in commercial banking acquired nor the gross consideration to be paid for organizations in the state.1 Bank operates in the Elizathe securities or assets exceeds the greater of: bethtown, Kentucky, banking market,2 and controls (A) $15 million; or 1.75 percent of the total deposits in commercial banks (B) 5 percent of the consolidated assets of in the market. Golden and its principals are not affilithe acquiring company up to a maximum of ated with any other depository institution in the market. $100 million; Based on all the facts of record, the Board concludes that consummation of the proposed transaction would not result in any significantly adverse effects on com- 4. Section 225.132 is amended by revising the second petition or the concentration of banking resources in sentence in paragraph (c)(2) to read as follows: any relevant banking market. Accordingly, the Board concludes that competitive considerations are consis- Section 225.132—Acquisition of assets. tent with approval of the application. The Board also $ $ $ $ $ concludes that the financial and managerial resources and the future prospects of Golden and Bank as well as (c) * * * other factors the Board must consider under section 3 (2) * * * For purposes of this interpretation, an of the BHC Act are consistent with approval.3 acquisition would generally be presumed to be sig- Section 3 of the BHC Act also requires the Board to nificant if the book value of the nonbank assets consider the effects of the proposal on the convenience being acquired exceeds 50 percent of the book value and needs of the communities to be served, including of the nonbank assets of the holding company or a review of performance under the Community Reinnonbank subsidiary comprising the same line of vestment Act (12 U.S.C. § 2901 et seq.) ("CRA"). activity. The CRA requires the federal financial supervisory agencies to encourage financial institutions to help $ $ * * * meet the credit needs of the local communities in which they operate, consistent with the safe and sound operation of such institutions. ORDERS ISSUED UNDER BANK HOLDING The Board has reviewed the CRA performance COMPANY ACT record of Bank in light of general comments received from two individuals that Bank is unresponsive and Orders Issued Under Section 3 of the Bank unfair in meeting the credit needs of its community.4 Holding Company Act These commenters do not allege weaknesses in any areas of Bank's CRA performance record, and do not Golden Financial Corporation provide evidence to support their allegations. The Elizabethtown, Kentucky Board notes that Bank received a "satisfactory" rat- Order Approving Formation of a Bank Holding Company 1. Data are as of September 30, 1991. 2. The Elizabethtown, Kentucky banking market is approximated Golden Financial Corporation, Elizabethtown, Ken- by Hardin and Larue Counties, Kentucky, plus the area around Muldraugh in Meade County, Kentucky. tucky ("Golden"), has applied under section 3(a)(1) of 3. Two commenters have noted that numerous civil actions are the Bank Holding Company Act ("BHC Act") pending against Bank and have alleged that Bank management has (12 U.S.C. § 1842(a)(1)) to become a bank holding violated state and federal securities laws. The Board has considered these comments in light of all the facts of record, including information company by acquiring all of the voting shares of Fort received from securities and law enforcement agencies at the federal Knox National Bank, Radcliff, Kentucky ("Bank"). and state levels and examination reports from Bank's primary regulator, the Office of the Comptroller of the Currency ("OCC"). The Notice of the application, affording interested per- Board notes that OCC has endorsed this application, citing specifically sons an opportunity to submit comments, has been the abilities of the proposed management and management's business published (57 Federal Register 916 (1992)). The time for plan for Bank. Bank's pending civil litigation consists almost entirely of actions to foreclose on collateral securing debts owed to Bank and, filing comments has expired, and the Board has considin some cases, borrowers have filed counterclaims alleging misconered the application and all comments received in light duct by Bank's management in their loan transactions. These proceedof the factors set forth in section 3(c) of the BHC Act. ings will provide borrowers with an adequate remedy if Bank's alleged misconduct can be established in the individual loan transactions. On Golden is a non-operating corporation formed for the the basis of all the facts of record, the Board concludes that protespurpose of acquiring Bank. Bank is the 226th largest tants' comments on managerial considerations are not supported by the record of this application. banking organization in Kentucky, and controls de- 4. Both commenters are currently involved with Bank in unrelated posits of $11.5 million, representing less than foreclosure actions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 619 ing in its most recent examination for CRA perfor- Orders Issued Under Section 4 of the Bank mance by Bank's primary regulator, the OCC. The Holding Company Act Statement of the Federal Financial Supervisory Agencies Regarding the Community Reinvestment Act pro- The Shorebank Corporation vides that a CRA examination is an important and Chicago, Illinois often controlling factor in the consideration of an institution's CRA record in the absence of significant Order Approving Provision of Community and supported allegations from a commenter. In light Development Activities of all the facts of record in this case, which include the comments filed and the results of Bank's CRA perfor- The Shorebank Corporation, Chicago, Illinois mance examinations, the Board concludes that the ("Shorebank"), a bank holding company under the convenience and needs considerations, including the Bank Holding Company Act ("BHC Act"), has ap- CRA performance record of Bank, are consistent with plied under section 4(c)(8) of the BHC Act (12 U.S.C. approval of this application. § 1843(c)(8)) and section 225.23 of the Board's Regu- Based on all the facts of record, the Board has lation Y (12 C.F.R. 225.23), to engage in community determined that the application should be, and hereby development activities through North Coast BIDCO, is, approved.5 The Board's approval is specifically Inc. ("North Coast"), and the Northern Economic conditioned upon compliance with the commitments Initiatives Corporation ("NEIC"), both de novo submade by Golden in connection with this application. sidiaries located in Marquette, Michigan. These activ- All of the commitments and conditions relied on by the ities will be conducted pursuant to section 225.25(b)(6) Board in reaching its decision in this case are condi- of the Board's Regulation Y (12 C.F.R. 225.25(b)(6)). tions imposed in writing by the Board in connection Notice of the applications, affording an opportunity with its findings and decision and may be enforced in for interested persons to submit comments, has been proceedings under applicable laws. published (57 Federal Register 9422 (1992)). The time The transaction approved in this Order shall not be for filing comments has expired, and the Board has consummated before the thirtieth calendar day follow- considered the applications and all comments received ing the effective date of this Order, or later than three in light of the factors set forth in section 4(c)(8) of the months after the effective date of this Order, unless BHC Act. such period is extended for good cause by the Board or Shorebank, with approximately $211.5 million in by the Federal Reserve Bank of St. Louis, pursuant to banking assets, is the 98th largest banking organization delegated authority. in Illinois.1 By order of the Board of Governors, effective North Coast is a newly chartered business and June 15, 1992. industrial development corporation ("BIDCO") licensed under Michigan law. Michigan BIDCOs are Voting for this action: Chairman Greenspan and Governors state-regulated private corporations established to Mullins, Kelley, La Ware, Lindsey, and Phillips. Absent and promote economic development through the provision not voting: Governor Angell. of moderate-risk growth capital and management assistance to small businesses. JENNIFER J. JOHNSON North Coast's activities will be conducted in con- Associate Secretary of the Board junction with the Michigan Strategic Fund ("MSF") under Michigan's Rural BIDCO Program.2 This pro- 5. Two protestants have requested that the Board hold a public gram encourages the creation of BIDCOs in rural hearing or meeting on these applications. Section 3(b) of the BHC Act areas, and North Coast will conduct its activities in the does not require the Board to hold a hearing on an application unless the appropriate banking authority for the bank to be acquired makes a Upper Peninsula region of Michigan, which consists of timely written recommendation of denial of the application. In this 15 economically depressed counties. North Coast will case, the OCC supports the proposal. make equity, subordinated debt, and long-term seed Generally, under the Board's rules, the Board may, in its discretion, hold a public hearing or meeting on an application to clarify factual investments in new and expanding small businesses issues related to the application and to provide an opportunity for for profit. These investments will generally provide testimony, if appropriate. 12 U.S.C. §§ 262.3(e) and 262.25(d). The "gap" financing for the non-bankable portion of fi- Board has carefully considered this request. In the Board's view, protestants have had ample opportunity to present written submissions, and protestants have submitted written comments that have been considered by the Board. Further, protestants have not identified facts that are material to the Board's decision and that are in dispute. 1. Asset data are as of December 31, 1991. Therefore, the Board has determined that a public meeting or hearing 2. The Michigan Strategic Fund will provide a loan to North Coast is not necessary to clarify the factual record in this application, or that converts into a grant under a formula based on the number of new otherwise warranted in this case, and the request for a public meeting jobs and increased sales resulting from North Coast's activities in or hearing on this application is denied. designated rural communities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

620 Federal Reserve Bulletin • August 1992 nancing packages offered by conventional lenders in proposed activities by Shorebank "can reasonably be the Upper Peninsula region. expected to produce benefits to the public, such as Shorebank also proposes to provide technical assis- greater convenience, increased competition, or gains tance and advice to small businesses on measures in efficiency, that outweigh possible adverse effects, to increase employment opportunities in low- and such as undue concentration of resources, decreased moderate-income areas through the Northern Eco- or unfair competition, conflicts of interests, or unnomic Initiatives Corporation ("NEIC"). NEIC will sound banking practices." 12 U.S.C. § 1843(c)(8). be organized as a non-profit community development Consummation of this proposal can reasonably be corporation, and will be the successor to the Northern expected to result in public benefits that outweigh Economic Initiatives Center, a department of North- adverse effects. The Board expects that Shorebank's ern Michigan University that has engaged in these de novo entry into the market for community develactivities for the last seven years.3 opment services will provide benefits to the commu- The Board has recognized the benefit of allowing nity, particularly to low- and moderate-income indibank holding companies to participate in community viduals. There is no evidence in the record to indicate development activities based on their unique role in that consummation of this propositi is likely to result in the community and has adopted a regulation permit- any significantly adverse effects, such as undue conting bank holding companies to make debt and equity centration of resources, decreased or unfair competiinvestments in community development corporations tion, conflicts of interests, or unsound banking pracor projects.4 To provide bank holding companies flex- tices. Accordingly, the Board has determined that the ibility in approaching community problems, the Board balance of public interest factors it must consider has not limited the scope of investments that may be under section 4(c)(8) of the BHC Act is favorable and made through community development corporations. consistent with approval. The Board's regulations permit investments in Based on the foregoing and all the facts of record, projects that are designed primarily to promote com- including the commitments made by Shorebank in munity welfare, including investments in projects de- connection with these applications, the Board has signed explicitly to create improved job opportunities determined that the applications should be, and hereby for low- and moderate-income groups,5 and Shorebank are, approved. This determination is also subject to all has committed to limit the activities of North Coast to the conditions set forth in the Board's Regulation Y, these types of projects in the Upper Peninsula region.6 including those in sections 225.4(d) and 225.23(b), and Accordingly, the proposed activities appear consistent to the Board's authority to require such modification with the Board's regulations and precedent and are or termination of the activities of a bank holding permissible for bank holding companies. The Board company or any of its subsidiaries as the Board finds also has previously approved the provision of advisory necessary to assure compliance with, or to prevent and related services to programs designed to promote evasion of, the provisions and purposes of the BHC community development, and the activities of NEIC Act and the Board's regulations and orders issued do not differ materially from the activities previously thereunder. The Board's approval of this proposal is approved by the Board.7 Accordingly, the Board con- specifically conditioned on compliance by Shorebank cludes that the proposed activities are community and its subsidiaries with these conditions and commitdevelopment activities permissible under section ments which are conditions imposed in writing by the 4(c)(8) of the BHC Act and section 225.25(b)(6) of Board in connection with its findings and decision and Regulation Y. may be enforced in proceedings under applicable law. In order to approve the applications, the Board is This transaction shall not be consummated later also required to determine that the performance of the than three months after the effective date of this Order, unless such period is extended for good cause by the Board or by the Federal Reserve Bank of Chicago, acting pursuant to delegated authority. 3. NEIC will also succeed to an existing micro-enterprise loan fund for new and established small businesses. Currently this fund has By order of the Board of Governors, effective $100,000 in loans outstanding. June 1, 1992. 4. 12 C.F.R. 225.25(b)(6). See also 12 C.F.R. 225.127 ("Bank holding companies possess a unique combination of financial and managerial resources making them particularly suited for a meaningful Voting for this action: Chairman Greenspan and Governors and substantial role in remedying our social ills."). Mullins, Kelley, LaWare, Lindsey, and Phillips. Absent and 5. 12 C.F.R. 225.127(d)(3). 6. Shorebank also has committed that funds lent from NEIC's not voting: Governor Angell. micro-enterprise fund will be for the same purpose. 7. First American Corporation, 75 Federal Reserve Bulletin 576 JENNIFER J. JOHNSON (1989); Shorebank Corporation, 74 Federal Reserve Bulletin 140 (1988). Associate Secretary of the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 621 Orders Issued Under Bank Merger Act ket,2 M&T Bank is the largest of 18 depository institutions. M&T Bank controls deposits of $4.9 billion, Manufacturers and Traders Trust Company representing 32.4 percent of the total deposits in Buffalo, New York depository institutions in the market ("market deposits").3 Central is the 17th largest depository institution Order Approving the Merger of Banks in the market, controlling $17.7 million in deposits, representing less than 1 percent of market deposits. Manufacturers and Traders Trust Company, Buffalo, Upon consummation of this proposal, M&T Bank New York ("M&T Bank"), a state member bank, has would control 32.5 percent of market deposits. The applied under section 18(c) of the Federal Deposit Herfindahl-Hirschman Index ("HHI") for the market Insurance Act (12 U.S.C. § 1828(c)) (the "Bank is 2063 and would increase by 7 points to 2070 upon Merger Act") to merge with Central Trust Company, consummation of the proposal.4 The Attorney General Rochester, New York ("Central"), and Endicott Trust has indicated that the proposal would not have a Company, Endicott, New York ("Endicott"), with significantly adverse effect on competition in any M&T Bank as the surviving entity.1 M&T Bank also relevant banking market. Neither the OCC nor the has applied under section 9 of the Federal Reserve Act FDIC has provided any objection to consummation of (12 U.S.C. § 321) to establish branches at the sites of this proposal or indicated that the proposal would have the branches of Central and Endicott. any significant adverse competitive effects. Notice of the applications, affording interested per- After considering the competition offered by other sons an opportunity to submit comments, has been depository institutions in the market, the number of given in accordance with the Bank Merger Act and the competitors remaining in the market, the level of and Board's Rules of Procedure (12 C.F.R. 262.3(b)). As the increase in market concentration, and the other required by the Bank Merger Act, reports on the facts of record, the Board concludes that consummacompetitive effects of the merger were requested from tion of this proposal would not have a significantly the United States Attorney General, the Office of the adverse effect on competition or the concentration of Comptroller of the Currency ("OCC"), and the Fed- banking resources in the Buffalo banking market or in eral Deposit Insurance Corporation ("FDIC"). The any other relevant banking market.5 time for filing comments has expired, and the Board The financial and managerial resources and future has considered the applications and all comments prospects of M&T Bank and Central and Endicott are received in light of the factors set forth in the Bank consistent with approval. Considerations relating to Merger Act and in section 9 of the Federal Reserve Act. First Empire, M&T's parent bank holding company, 2. The Buffalo, New York market is approximated by Erie and is the 12th largest commercial banking organization in Niagara Counties in New York. New York, controlling deposits of $5.7 billion, repre- 3. In this context, depository institutions include commercial banks, savings banks, and savings associations. Market share data are based senting approximately 2.2 percent of total deposits in on calculations in which the deposits of thrift institutions are included commercial banking organizations in the state. Central at 50 percent. The Board previously has indicated that thrift institutions have become, or have the potential to become, significant controls deposits of $1 billion, representing less than competitors of commercial banks. See Midwest Financial Group, 75 1 percent of the total deposits in commercial banks in Federal Reserve Bulletin 386 (1989); National City Corporation, 70 the state. Endicott controls deposits of $276 million, Federal Reserve Bulletin 743 (1984). 4. Under the revised Department of Justice Merger Guidelines, 49 representing less than 1 percent of the total deposits in Federal Register 26,823 (June 29, 1984), a market in which the commercial banks in the state. Upon consummation of post-merger HHI is above 1800 is considered highly concentrated. In such markets, the Justice Department is likely to challenge a merger the proposal, First Empire would become the 11th that increases the HHI by more than 50 points. The Justice Departlargest commercial banking organization in New York, ment has informed the Board that a bank merger or acquisition controlling $7 billion in deposits, representing approx- generally will not be challenged (in the absence of other factors indicating anti-competitive effects) unless the post-merger HHI is at imately 2.7 percent of the total deposits in commercial least 1800 and the merger increases the HHI by 200 points. The Justice banking organizations in the state. Department has stated that the higher than normal HHI thresholds for screening bank mergers for anti-competitive effects implicitly recog- M&T Bank and Central compete directly in the nize the competitive effect of limited-purpose lenders and other Buffalo, Rochester, and Olean banking markets in non-depository financial entities. New York. In the Buffalo, New York banking mar- 5. In the Rochester banking market, M&T Bank would control 10.4 percent of market deposits upon consummation of this proposal. The HHI would increase by 54 points to 1130 and 28 depository institutions would continue to operate in the market. 1. M&T Bank is a wholly owned subsidiary of First Empire State In the Olean banking market, M&T Bank would control 3.8 percent Corporation, Buffalo, New York ("First Empire"). Central and of market deposits upon consummation of this proposal. The HHI Endicott are wholly owned subsidiaries of Midlantic Corporation, would increase by 6 points to 1609 and 13 depository institutions Edison, New Jersey. would continue to operate in the market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

622 Federal Reserve Bulletin • August 1992 the convenience and needs of the community to be Savings of America, F.S.B., Irwindale, California served also are consistent with approval. ("Home Savings"), through its bank subsidiary, The M&T Bank also has applied under section 9 of the First National Bank of Zanesville, Zanesville, Ohio Federal Reserve Act to establish branches at the ("Bank"). BancFirst has requested Board approval of existing branch locations of Central and Endicott. The this transaction pursuant to section 5(d)(3) of the Board has considered the factors it is required to Federal Deposit Insurance Act (12 U.S.C. § 1815(d)(3) consider when reviewing applications for establishing ("FDI Act")), as amended by the Federal Deposit branches pursuant to section 9 of the Federal Reserve Insurance Corporation Improvement Act of 1991 (Pub. Act and, for the reasons stated in the Order, finds L. No. 102-242, § 501, 105 Stat. 2236, 2388-2392 those factors to be consistent with approval. (1991)). Section 5(d)(3) of the FDI Act requires the Based on the foregoing and all the facts of record, Board to follow the procedures and consider the including the commitments made by M&T Bank in factors set forth in the Bank Merger Act (12 U.S.C. connection with these applications, the Board has § 1828(c)). 12 U.S.C. § 1815(d)(3)(E).i determined that the applications should be, and hereby BancFirst, with $258 million in deposits, is the 31st are, approved. The Board's approval of this proposal largest commercial banking organization in Ohio.2 is specifically conditioned on compliance with these Bank and Home Savings compete in the Zanesville, commitments and conditions which are conditions Ohio, banking market.3 Bank is the largest of seven imposed in writing by the Board in connection with its commercial banking or thrift institutions in this market findings and decision and may be enforced in proceed- (together, "depository institutions"), controlling deings under applicable law. posits of $210 million, representing approximately The merger of the banks shall not be consummated 29.7 percent of total deposits in depository institutions before the thirtieth calendar day following the effective in the market ("market deposits"). Home Savings date of this Order, or later than three months after the controls $32.8 million in deposits in the market. With effective date of this Order, unless such period is thrift deposits in the market weighted at 50 percent,4 extended for good cause by the Board or by the Home Savings is the smallest depository institution in Federal Reserve Bank of New York, acting pursuant the market, representing approximately 2.3 percent of to delegated authority. market deposits. Upon consummation of this pro- By order of the Board of Governors, effective posal, Bank would control $242.8 million in deposits, June 1, 1992. representing approximately 33.5 percent of market deposits.5 The Herfindahl-Hirschman Index ("HHI") Voting for this action: Chairman Greenspan and Governors for this market would increase by 188 points to 2221.6 Mullins, Kelley, LaWare, Lindsey, and Phillips. Absent and not voting: Governor Angell. JENNIFER J. JOHNSON 1. These factors include considerations relating to competition, Associate Secretary of the Board financial and managerial resources, and future prospects of the existing and proposed institutions, and the convenience and needs of the communities to be served. 12 U.S.C. § 1828(c). 2. Deposit data are as of June 30, 1991; market data are as of June 30, 1990. ACTIONS TAKEN UNDER THE FEDERAL DEPOSIT 3. The Zanesville banking market is approximated by all of Musk- INSURANCE CORPORATION IMPROVEMENT ACT ingum County, Ohio, except the Village of New Concord, plus Harrison Township in adjacent Perry County. 4. See, e.g., First Hawaiian, Inc., 77 Federal Reserve Bulletin 52, By the Board 55 (1991); First Union Corporation, 76 Federal Reserve Bulletin 83, 85 (1990). 5. Because the deposits of Home Savings would be transferred to a June 8, 1992 commercial bank pursuant to BancFirst's proposal, those deposits are included at 100 percent following Bank's proposed assumption of these deposits. See First Banks, Inc., 76 Federal Reserve Bulletin 669, Ms. Kim Kunz 670 n.9 (1990); Norwest Corporation, 78 Federal Reserve Bulletin 452 Alex Sheshunoff & Company, Inc. (1992). 505 Barton Springs Road, Suite 1300 6. Under the revised Department of Justice Merger Guidelines, 49 Federal Register 26,823 (June 29, 1984), a market in which the Austin, Texas 78704 post-merger HHI is above 1800 is deemed to be highly concentrated. In such markets, the Justice Department is likely to challenge a merger that increases the HHI by more than 50 points. However, the Justice Dear Ms. Kunz: Department has informed the Board that a bank merger or acquisition generally will not be challenged (in the absence of other factors BancFirst Corp., Zanesville, Ohio ("BancFirst"), has indicating anticompetitive effects) unless the post-merger HHI is at least 1800 and the merger increases the HHI by more than 200 points. proposed to acquire certain assets and assume certain The Justice Department has stated that the higher-than-normal HHI liabilities of the Dresden, Ohio, branch of Home thresholds for screening bank mergers for anticompetitive effects Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 623 In light of the small increase in market concentration, connection with this provision, advice of the fact of the number of competitors remaining in the market, consummation should be given in writing to the Recertain attractive features of the market, and other serve Bank. facts of record in this case, the Board concludes that consummation of this proposal would not have a Very truly yours, significantly adverse effect on competition or the concentration of banking resources in the Zanesville banking market or in any other relevant banking market. JENNIFER J. JOHNSON The Board also concludes that the financial and Associate Secretary of the Board managerial resources and future prospects of Bank and BancFirst are consistent with approval of this cc: James H. Nicholson, BancFirst Corp. application. Moreover, the record in this case shows Federal Reserve Bank of Cleveland that: Tom Hesselbrock, Federal Deposit Insurance (1) The transaction will not result in the transfer of Corporation any federally insured depository institution's federal Office of the Comptroller of the Currency deposit insurance from one federal deposit insur- Department of Justice ance fund to the other; (2) BancFirst and Bank currently meet, and upon June 24, 1992 consummation of the proposed transaction will continue to meet, all applicable capital standards; and Juliet B. Krassenstein, Esq. (3) Since Bank is located in Ohio and is acquiring Buchanan Ingersoll, P.C. certain assets and assuming certain liabilities of an 58th Floor Ohio branch office of a federal savings bank, the 600 Grant Street proposed transaction would comply with the Dou- Pittsburgh, Pennsylvania 15219 glas Amendment if Home Savings were a state bank that BancFirst was applying to acquire directly. See Dear Ms. Krassenstein: 12 U.S.C. § 1815(d)(3). Integra Financial Corporation, Pittsburgh, Pennsylva- Based on the foregoing and all of the facts of record, nia ("Integra"), has proposed to acquire Landmark the Board has determined that this application should Savings Association, also of Pittsburgh ("Landbe, and hereby is, approved.7 This approval is subject mark"), and its subsidiaries, pursuant to section to Bank obtaining the required approval of the appro- 4(c)(8) of the Bank Holding Company Act ("BHC priate Federal banking agency for the proposed merger Act") and section 225.25(b)(9) of the Board's Regulaunder the Bank Merger Act. The Board's approval of tion Y (12 C.F.R. 225.25(b)(9)). Integra also has apthis application also is conditioned upon BancFirst's plied, pursuant to section 5(d)(3) of the Federal Decompliance with the commitments made in connection posit Insurance Act (12 U.S.C. § 1815(d)(3)) (the "FDI with this application. The commitments and condi- Act"), as amended by the Federal Deposit Insurance tions referred to above are conditions imposed in Corporation Improvement Act of 1991 (Pub. L. No. writing by the Board in connection with its findings 102-242, § 501, 105 Stat. 2236, 2388-2392 (1991)) to and decision, and may be enforced under applicable merge Landmark into its subsidiary bank, Integra provisions of law. This approval is limited to the National Bank/Pittsburgh, Pittsburgh, Pennsylvania proposal presented to the Board by BancFirst, and ("Bank"). Section 5(d)(3) of the FDI Act requires the may not be construed as approving any other transac- Board to follow the procedures and consider the tion. factors set forth in the Bank Merger Act (12 U.S.C. This transaction may not be consummated before § 1828(c)). 12 U.S.C. § 1815(d)(3)(E).' the thirtieth calendar day following the effective date The Board has previously determined that the operof this Order, or later than three months after the ation of a savings association is closely related to effective date of this Order, unless such period is banking and permissible for bank holding companies extended by the Board or the Federal Reserve Bank of (12 C.F.R. 225.25(b)(9)). In making this determina- Cleveland, acting pursuant to delegated authority. In tion, the Board required that savings associations implicitly recognize the competitive effect of limited-purpose lenders 1. These factors include considerations relating to competition, and other non-depository financial institutions. financial and managerial resources, and future prospects of the 7. Voting for this action: Chairman Greenspan and Governors existing and proposed institutions, and the convenience and needs of Mullins, Angell, Kelley, LaWare, Lindsey, and Phillips. the communities to be served. 12 U.S.C. § 1828(c). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

624 Federal Reserve Bulletin • August 1992 acquired by bank holding companies conform their ing market, controlling $124.6 million in deposits, direct and indirect activities to those permissible for representing 6.8 percent of total deposits in depository bank holding companies under section 4 of the BHC institutions in the market. Upon consummation of this Act. Integra has committed to conform all activities of proposal, Integra would become the largest depository Landmark to the requirements of section 4 and Regu- institution in the market, controlling $327.9 million in lation Y.2 deposits, representing 33.4 percent of total deposits in Integra operates four subsidiary banks in Pennsyl- depository institutions in the market. The Herfindahlvania and is the sixth largest commercial banking Hirschman Index ("HHI") would increase by 432 organization in the state, controlling $7.2 billion in points to 2163.8 deposits, representing 5.4 percent of total deposits in In order to mitigate the adverse competitive effects commercial banking organizations in the state.3 Land- that would otherwise result from consummation of this mark is the third largest thrift institution in the state, proposal, Integra has committed to divest, within 180 controlling deposits of $1.1 billion. Upon consumma- days, two of Landmark's offices in the Butler banking tion of these transactions, Integra would remain the market with combined deposits of $62.7 million.9 Folsixth largest commercial banking organization in the lowing this divestiture, Integra would remain the largstate, controlling $8.3 billion in deposits. est depository institution in the market, controlling Integra and Landmark directly compete in the Pitts- deposits of $265.1 million, representing 27 percent of burgh,4 Greensburg-Latrobe,5 and Butler6 banking total deposits in depository institutions in the market. markets, all located in Pennsylvania. Integra is the After consummation of this proposal and completion second largest of 11 depository institutions in the of the divestiture, ten competitors would remain in the Butler banking market, controlling deposits of $203.3 market and the HHI would increase by 180 points to million, representing 22.1 percent of total deposits in 1911. Based on all the facts of record in this case,10 and depository institutions in the market.7 Landmark is the subject to the divestiture commitments made by Intesixth largest depository institution in the Butler bank- gra, the Board concludes that consummation of this proposal would not result in any significantly adverse effect on competition in Butler or any relevant banking 2. Landmark has five non-bank subsidiaries. Two of these subsid- market.11 iaries are engaged in activities that are not authorized under the Board's Regulation Y. L/M Development, Inc. is a joint venture investing in real estate, and Landmark Tri-Rivers Insurance Agency, Inc. ("Tri-Rivers") is an insurance company engaging in the sale, as 8. Under the revised Department of Justice Merger Guidelines, 49 agent, of permissible credit-related accident and health insurance and Federal Register 26,823 (1984), a market in which the post-merger impermissible property and casualty insurance. L/M Development is HHI is above 1800 is considered to be highly concentrated. In such currently inactive and performs no real estate development activities; markets, the Justice Department is likely to challenge a merger that it will be liquidated within two years of consummation of this increases the HHI by more than 50 points. The Justice Department proposal. Integra has committed that the property and casualty has informed the Board that a bank merger or acquisition generally insurance activities of Tri-Rivers will cease prior to or contempora- will not be challenged (in the absence of other factors indicating neously with the consummation of the proposed transactions, and that anti-competitive effects) unless the post-merger HHI is at least 1800 the portfolio of insurance policies held by Tri-Rivers at the time of and the merger increases the HHI by more than 200 points. The consummation will be divested within two years of consummation. Justice Department has stated that the higher than normal HHI 3. State deposits are as of December 31, 1991. Market data are as of thresholds for screening bank mergers for anti-competitive effects June 30, 1990. implicitly recognizes the competitive effect of limited-purpose lenders 4. The Pittsburgh banking market consists of Allegheny County; the and other non-depository financial entities. southern two tiers of townships in Butler County; the southern 9. Integra has executed an agreement for the sale of the two one-third of Armstrong County; the southern tier of townships in Landmark offices to a competitor in the market. If the divestiture is Beaver County; the northern two tiers of townships in Washington not effected prior to consummation of this proposal, Integra has County; and the western one-third of Westmoreland County, Penn- committed that an independent trustee will administer this agreement sylvania. for the sale of the Landmark offices. If the trustee is unsuccessful in 5. The Greensburg-Latrobe banking market consists of the eastern consummating the divestiture of the two offices within 180 days of two-thirds of Westmoreland County, Pennsylvania. consummation of the proposal to acquire Landmark, the trustee will 6. The Butler banking market consists of Butler County, excluding then be required to sell the offices promptly. See, e.g., Society the southern two tiers of townships, and five townships in the Corporation, 78 Federal Reserve Bulletin 302, 303 n.10 (1992); First northeastern corner of Armstrong County. Hawaiian, Inc., 77 Federal Reserve Bulletin 52 (1991); First Union 7. In this context, depository institutions include commercial banks, Corporation, 76 Federal Reserve Bulletin 83 (1990). savings banks and savings associations. Market share data before 10. By letter dated May 22, 1992, the Department of Justice consummation are based on calculations in which the deposits of thrift concluded that the proposed transaction would not have a significantly institutions are included at 50 percent. The Board previously has adverse effect on competition. indicated that thrift institutions have become, or have the potential to 11. In the Pittsburgh banking market, Integra would control 12.7 become, major competitors of commercial banks. See Midwest Finan- percent of the total deposits in depository institutions in the market cial Group, 75 Federal Reserve Bulletin 386 (1989); National City upon consummation of this proposal. The HHI for the market would Corporation, 70 Federal Reserve Bulletin 743 (1984). Because the not increase, and the market would remain concentrated. deposits of Landmark would be transferred to a commercial bank In the Greensburg-Latrobe banking market, Integra would control under this proposal, those deposits are included at 100 percent in the 22.3 percent of total deposits in depository institutions in the market calculation of pro-forma market share. See First Banks, Inc., 76 upon consummation of this proposal. The HHI would increase by 58 Federal Reserve Bulletin 669, 670 n. 9 (1990); Norwest Corporation, points to a level of 1458 and the market would remain moderately 78 Federal Reserve Bulletin 452 (1992). concentrated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 625 The Board also concludes that the financial and findings and decision and may be enforced in proceedmanagerial resources and future prospects of Integra, ings under applicable law. The determination as to the Landmark, and their respective subsidiaries are con- nonbanking subsidiary to be acquired also is subject to sistent with approval of this proposal, in light of all of the conditions contained in the Board's Regula- Integra's commitment to provide new capital to Bank tion Y, including those in sections 225.4(d) and upon completion of the merger. Considerations relat- 225.23(b)(3) (12 C.F.R. 225.4(d) and 225.23(b)(3)), and ing to the convenience and needs of the communities to the Board's authority to require such modification to be served and the other factors the Board must or termination of the activities of a holding company or consider under the Bank Merger Act also are consis- any of its subsidiaries as the Board finds necessary to tent with approval. Moreover, the record in this case assure compliance with, or prevent evasions of, the shows that: provisions and purposes of the BHC Act and the (1) The transaction will not result in the transfer of Board's regulations and orders issued thereunder. any federally insured depository institution's federal The merger of Integra and Landmark shall not be deposit insurance from one federal deposit insur- consummated before the thirtieth calendar day followance fund to the other; ing the effective date of this Order, and the merger (2) Integra and Bank currently meet and upon con- shall not be consummated later than three months summation of the proposed transactions will con- after the effective date of this Order, unless such tinue to meet, all applicable capital standards; and period is extended for good cause by the Board or by (3) Since Bank is located in Pennsylvania and is the Federal Reserve Bank of Cleveland, acting pursumerging with a Pennsylvania savings association, ant to delegated authority. the proposed transaction would comply with the In connection with these provisions, advice of the Douglas Amendment if Landmark were a state bank fact of consummation of the transaction should be that Integra was applying to acquire directly. See given in writing to the Reserve Bank. 12 U.S.C. § 1815(d)(3). Very truly yours, Based on the foregoing and other factors of record, including the commitments made by Integra in connection with these applications, the Board has determined that the applications should be, and hereby are, JENNIFER J. JOHNSON approved.12 The Board's approval of this proposal is Associate Secretary of the Board specifically conditioned on compliance with these commitments and conditions, which are conditions cc: Federal Reserve Bank of Cleveland imposed in writing by the Board in connection with its Office of the Comptroller of the Currency Pennsylvania Secretary of Banking Tom Hesselbrock, Federal Deposit Insurance 12. Voting for this action: Chairman Greenspan and Governors Mullins, Angell, Kelley, LaWare, Lindsey, and Phillips. Corporation Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

626 Federal Reserve Bulletin • August 1992 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 Firstar Corporation, Federated Bank, S.S.B., First Wisconsin May 27, 1992 Milwaukee, Wisconsin Wauwatosa, Wisconsin National Bank of Milwaukee, Milwaukee, Wisconsin NBD Bank, National NBD Bancorp, Inc., Great Lakes Bancorp, June 15, 1992 Association, Detroit, Michigan FSB, Detroit, Michigan Ann Arbor, Michigan (Roosevelt Park, Michigan, branch) APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 3 Effective Applicant(s) Bank(s) Date Southern National Corporation, Southern Savings Bank of Elkin, Inc., May 29, 1992 Lumberton, North Carolina S.S.B., Elkin, North Carolina Southern Savings Bank of Valdese, Inc., S.S.B., Valdese, North Carolina Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 627 Section 4 Effective Applicant(s) Bank(s) p ate First Security Financial Omni Capital Group, Inc., June 26, 1992 Corporation, Salisbury, North Salisbury, North Carolina Carolina APPLICATIONS APPROVED UNDER BANK MERGER ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Effective Applicant(s) Bank(s) ^ ate First of America Bank-Ann Arbor, First of America Bank-Plymouth N.A., May 29, 1992 Ann Arbor, Michigan Plymouth, Michigan 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 Allied Bank Capital, Inc., Summit Savings Bank, Richmond June 4, 1992 Sanford, North Carolina Inc., SSB, Sanford, North Carolina A.N.B. Holding Company, Ltd., The American National Dallas May 27, 1992 Terrell, Texas Bank of Terrell, Terrell, Texas Arlington State Banc Holding Arlington State Bank, Kansas City June 3, 1992 Company, Arlington, Nebraska Arlington, Nebraska Banner Bancorp., Ltd., Eitzen Independents, Chicago June 9, 1992 Birnamwood, Wisconsin Inc., Eitzen, Minnesota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

628 Federal Reserve Bulletin • August 1992 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date Baylor Bancshares, Inc., The First National Bank Dallas June 4, 1992 Seymour, Texas in Whitney, Whitney, Texas Capitol Bancorp Ltd., Oakland Commerce Bank, Chicago May 22, 1992 Lansing, Michigan Farmington Hills, Michigan CBA Bankshares, Inc., Citizens Bank of Atlanta June 19, 1992 Americus, Georgia Americus, Americus, Georgia CB&T Financial Corp., The Westover Bank, Richmond June 11, 1992 Fairmont, West Virginia Westover, West Virginia Citizens Holding Company, Inc. Citizens Bank of Atlanta June 8, 1992 Talladega, Alabama Talladega, Talladega, Alabama City Holding Company, Blue Ridge Bank, Inc., Richmond June 5, 1992 Charleston, West Virginia Martinsburg, West Virginia Country Bankers, Inc., Farmers and Merchants Minneapolis June 19, 1992 Blooming Prairie, Minnesota State Bank of Blooming Prairie, Blooming Prairie, Minnesota Citizens State Bank of Hayfield, Hayfield, Minnesota Edwards Brothers Holding Farmers State Bank of Minneapolis May 29, 1992 Company, Inc., Denton, Denton, Montana Denton, Montana Financial Institutions, Inc., Verona Exchange Bank, Chicago June 9, 1992 Verona, Illinois Verona, Illinois First Bancshares Corporation, First Bank, Upper Minneapolis May 26, 1992 Gladstone, Michigan Michigan, N.A., Gladstone, Michigan First Community Bancshares, Lesernal Corporation, Chicago June 17, 1992 Corp., Anamosa, Iowa Anamosa, Iowa First Community Bancshares, Inc., Milton, Wisconsin First Integrity Bancshares, Inc., Frazee Bancorporation, Minneapolis May 29, 1992 Staples, Minnesota Inc., Frazee, Minnesota First Metro Bancorp, First Metro Bank, Atlanta May 29, 1992 Muscle Shoals, Alabama Muscle Shoals, Alabama The First Southeast Missouri Exlanco, Inc., St. Louis May 28, 1992 Bancorporation, Marble Hill, Missouri Scott City, Missouri Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 629 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date First State Bancshares, Inc., First State Bank, Chicago May 26, 1992 New London, Wisconsin New London, Wisconsin Fortress Bancshares, Inc., W-CV Bancorp., Inc., Chicago June 11, 1992 Hartland, Wisconsin Westby, Wisconsin Hill Bancshares, Inc., Hill Bancshares of Dallas June 22, 1992 Weimar, Texas Delaware, Inc., Wilmington, Delaware Hill Bank & Trust Co., Weimar, Texas J & L Holdings Limited Plainview Holding Kansas City May 27, 1992 Partnership, Company, San Marcos, Texas Pilger, Nebraska KSAD, Inc., Rain wood Corporation, Chicago June 9, 1992 Council Bluffs, Iowa Omaha, Nebraska Williamsburg Holding Company, Omaha, Nebraska Nevada National Company, Omaha, Nebraska Lost Pines Bancshares-Delaware, Lost Pines National Dallas June 12, 1992 Inc., Bank, Wilmington, Delaware Smithville, Texas Meigs County Bancshares, Inc., Meigs County Bank, Atlanta May 29, 1992 Decatur, Tennessee Decatur, Tennessee MidAmerican Corporation, Jayhawk Bancshares, Kansas City June 1, 1992 Shawnee Mission, Kansas Inc., Kansas City, Missouri Middle Georgia Corporation, CBA Bankshares, Inc., Atlanta June 19, 1992 Ellaville, Georgia Americus, Georgia North American Bancorp, Inc., North Side Deposit Bank, Cleveland May 29, 1992 Pittsburgh, Pennsylvania Pittsburgh, Pennsylvania Northwest Bancshares First National Bank of Dallas May 29, 1992 Corporation, Benton, Benton, Louisiana Benton, Louisiana Park Bankshares, Inc., First National Bank of Atlanta June 24, 1992 Lake Park, Florida Lake Park, Lake Park, Florida Pioneer Bancshares, Inc., Pioneer Bank, Atlanta May 29, 1992 Chattanooga, Tennessee Chattanooga, Tennessee Prairie Bancorp, Inc., First Hanover Bancorp, Chicago May 29, 1992 Manlius, Illinois Inc., Hanover, Illinois Premier Financial Bancorp, Inc., Bank of Germantown, Cleveland June 17, 1992 Vanceburg, Kentucky Germantown, Kentucky Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

630 Federal Reserve Bulletin • August 1992 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date Premier Financial Bancorp, Inc., Citizens Deposit Bank & Cleveland May 29, 1992 Vanceburg, Kentucky Trust, Vanceburg, Kentucky Sarasota BanCorporation, Inc., Sarasota Bank, Atlanta May 29, 1992 Sarasota, Florida Sarasota, Florida South Central Bancshares, Inc., First Midwest St. Louis June 2, 1992 Russellville, Kentucky Bancshares, Inc., Princeton, Kentucky Swainsboro Bankshares, Inc., The Citizens Bank of Atlanta June 9, 1992 Swainsboro, Georgia Swainsboro, Swainsboro, Georgia Vidalia Bankshares, Inc., Brice Banking Company, Atlanta June 2, 1992 Vidalia, Georgia Inc., Vidalia, Georgia Whitaker Bank Corporation of Cornat, Inc., Cleveland June 9, 1992 Kentucky, Shepherdsville, Lexington, Kentucky Kentucky Whitaker Bancshares, Inc., Lexington, Kentucky Section 4 Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date Barnett Banks, Inc., Southeast Switch, Inc., Atlanta June 22, 1992 Jacksonville, Florida Maitland, Florida Blythedale Bancshares, Inc., Citizens Bank of Kansas City June 24, 1992 Blythedale, Missouri Blythedale, Blythedale, Missouri Brooke Holdings, Inc., Ross Olson and Kansas City June 3, 1992 Jewell, Kansas Associates, Inc., Concordia, Kansas Columbia Bancorp, Fairview Federal Savings Richmond May 29, 1992 Columbia, Maryland and Loan Association, Ellicott City, Maryland Comerica Incorporated, Waterfront Corporation, Chicago May 19, 1992 Detroit, Michigan Detroit, Michigan Community First Bankshares, Community Insurance, Minneapolis June 12, 1992 Inc., Inc., Fargo, North Dakota Fargo, North Dakota Firstar Corporation, Federated Insurance Chicago May 27, 1992 Milwaukee, Wisconsin Services Corporation, Menomonee Falls, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 631 Section 4—Continued Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date First Mid-Illinois Bancshares Heartland Federal Chicago June 23, 1992 Inc., Savings and Loan Mattoon, Illinois Association, Mattoon, Illinois National City Corporation, Check Security Services Cleveland June 19, 1992 Cleveland, Ohio of America Incorporated, Houston, Texas Valley Bancorporation, United Savings and Loan Chicago June 19, 1992 Appleton, Wisconsin Association, Sheboygan, Wisconsin APPLICATIONS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. . i» \ r> i / \ Reserve Effective Applicant(s) Bank(s) ank Date B Commercial Trust and Savings Sanborn County Bank, Minneapolis May 27, 1992 Bank, Woonsocket, South Mitchell, South Dakota Dakota PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits without action a bank holding company application to against the Federal Reserve Banks in which the Board relocate its subsidiary bank from Washington to of Governors is not named a party. Idaho. The Board's brief was filed on June 29, 1992. Davis v. Board of Governors, No. 91-6972 (Supreme Zemel v. Board of Governors, No. 92-1057 (D. District Court, filed December 4, 1991). Petition for certioof Columbia, filed May 4, 1992). Age Discrimination rari seeking review of Burke v. Board of Governors, in Employment Act case. 940 F.2d 1360 (10th Cir. 1991), in which the court of Fields v. Board of Governors, No. 3:92CV7118 (N.D. appeals upheld Board orders assessing civil money Ohio, filed March 3, 1992). Federal Tort Claims Act penalties and issuing orders of prohibition. The complaint alleging misrepresentation during applica- Supreme Court denied the petition for certiorari on tion process. Motion to dismiss filed May 4, 1992. May 18, 1992 State of Idaho, Department of Finance v. Board of In re Subpoena Served on the Board of Governors, Governors, No. 92-70107 (9th Cir., filed February 24, Nos. 91-5427, 91-5428 (D.C. Cir., filed Decem- 1992). Petition for review of Board order returning ber 27,1991). Appeal of order of district court, dated Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

632 Federal Reserve Bulletin • August 1992 December 3, 1991, requiring the Board and the MCorp v. Board of Governors, No. CA3-88-2693 Office of the Comptroller of the Currency to produce (N.D. Texas, filed October 10, 1988). Application confidential examination material to a private liti- for injunction to set aside temporary cease and gant. On June 26, 1992, the court of appeals affirmed desist orders. The case is pending. the district court order in part, but held that the bank examination privilege was not waived by the agencies' provision of examination materials to the ex- WRITTEN AGREEMENTS APPROVED BY FEDERAL amined institution, and remanded for further consid- RESERVE BANKS eration of the privilege issue. Greenberg v. Board of Governors, No. 91-4200 (2d Bank of Forest Cir., filed December 4, 1991). Petition for review of Forest, Mississippi orders of prohibition issued by the Board on October 28, 1991. The Board's orders were affirmed on The Federal Reserve Board announced on June 25, June 19, 1992. 1992, the execution of a Written Agreement among the First Interstate BancSystem of Montana, Inc. v. Federal Reserve Bank of Atlanta, the Department of Board of Governors, No. 91-1525 (D.C. Cir., filed Banking and Consumer Finance of the State of Mis- November 1, 1991). Petition for review of Board's sissippi, and the Bank of Forest, Forest, Mississippi. order denying on Community Reinvestment Act grounds the petitioner's application under section 3 First Indo-American Bank of the Bank Holding Company Act to merge with San Francisco, California Commerce BancShares of Wyoming, Inc. Petitioners' brief is due August 21, 1992. The Federal Reserve Board announced on June 19, Board of Governors v. Kemal Shoaib, No. CV 91-5152 1992, the execution of a Written Agreement between (C.D. California, filed September 24, 1991). Action the Federal Reserve Bank of San Francisco and the to freeze assets of individual pending administrative First Indo-American Bank, San Francisco, California. adjudication of civil money penalty assessment by the Board. On October 15, 1991, the court issued a Guaranty Bancshares Corporation preliminary injunction restraining the transfer or Shamokin, Pennsylvania disposition of the individual's assets. Board of Governors v. Ghaith R. Pharaon, No. 91- The Federal Reserve Board announced on June 23, CIV-6250 (S.D. New York, filed September 17, 1992, the execution of a Written Agreement between 1991). Action to freeze assets of individual pending the Federal Reserve Bank of Philadelphia and Guaradministrative adjudication of civil money penalty anty Bancshares Corporation, Shamokin, Pennsylvaassessment by the Board. On September 17, 1991, nia. the court issued an order temporarily restraining the transfer or disposition of the individual's assets. Lincoln Financial Corporation In re Smouha, No. 91-B-13569 (Bkr. S.D. New York, Fort Wayne, Indiana filed August 2, 1991). Ancillary proceeding under the U.S. Bankruptcy Code brought by provisional The Federal Reserve Board announced on June 25, liquidators of BCCI Holdings (Luxembourg) S.A. 1992, the execution of a Written Agreement between and affiliated companies. On August 15, 1991, the the Federal Reserve Bank of Chicago and Lincoln bankruptcy court issued a temporary restraining Financial Corporation, Fort Wayne, Indiana. order staying certain judicial and administrative actions, which has been continued by consent. Union Texas Bancorporation, Inc. Fields v. Board of Governors, No. 3:91CV069 (N.D. Laredo, Texas Ohio, filed February 5, 1991). Appeal of denial of request for information under the Freedom of Infor- The Federal Reserve Board announced on June 19, mation Act. The Board's motion for summary judg- 1992, the execution of a Written Agreement between ment was granted in part and its motion to dismiss the Federal Reserve Bank of Dallas and Union Texas was denied on June 23, 1992. Bancorporation, Inc., Laredo, Texas. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics CONTENTS WEEKLY REPORTING COMMERCIAL BANKS Assets and liabilities A3 Guide to Tabular Presentation A20 All reporting banks All 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 All 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 cfedit 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 • August 1992 Domestic Financial Statistics—Continued REPORTED BY BANKS IN THE UNITED STATES REAL ESTATE A57 Liabilities to and claims on foreigners A35 Mortgage markets A58 Liabilities to foreigners A36 Mortgage debt outstanding A60 Banks' own claims on foreigners A61 Banks' own and domestic customers' claims on foreigners CONSUMER INSTALLMENT CREDIT A61 Banks' own claims on unaffiliated foreigners A62 Claims on foreign countries—Combined A37 Total outstanding and net change domestic offices and foreign branches A3 8 Terms REPORTED BYNONBANKING BUSINESS FLOW OF FUNDS ENTERPRISES IN THE UNITED STATES A39 Funds raised in U.S. credit markets A41 Direct and indirect sources of funds to credit A63 Liabilities to unaffiliated foreigners markets A64 Claims on unaffiliated foreigners A42 Summary of credit market debt outstanding A43 Summary of credit market claims, by holder SECURITIES HOLDINGS AND TRANSACTIONS Domestic Nonfinancial Statistics A65 Foreign transactions in securities A66 Marketable U.S. Treasury bonds and notes—Foreign transactions SELECTED MEASURES A44 Nonfinancial business activity—Selected INTEREST AND EXCHANGE RATES measures A45 Labor force, employment, and unemployment A67 Discount rates of foreign central banks A46 Output, capacity, and capacity utilization A67 Foreign short-term interest rates A47 Industrial production—Indexes and gross value A68 Foreign exchange rates A49 Housing and construction A50 Consumer and producer prices A69 Guide to Statistical Releases and A51 Gross domestic product and income Special Tables A52 Personal income and saving SPECIAL TABLES International Statistics A70 Assets and liabilities of commercial banks, SUMMARY STATISTICS March 31, 1992 A76 Terms of lending at commercial banks, A53 U.S. international transactions—Summary February 1992 A54 U.S. foreign trade A80 Pro forma balance sheet and income statements for A54 U.S. reserve assets priced service operations, March 31, 1992 A54 Foreign official assets held at Federal Reserve A83 Assets and liabilities of life insurance companies, Banks December 31, 1991 A55 Foreign branches of U.S. banks—Balance sheet data A57 Selected U.S. liabilities to foreign official institutions 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 10 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 • August 1992 1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 1991 1992 1992r MMoonneettaarryy aanndd ccrreeddiitt aaggggrreeggaattee Q2 Q3 Q4 Qlr Jan. Feb. Mar. Apr. May Reserves of depository institutions2 1 2.2r 8.3r 15.2r 23.4 15.4 40.5 18.4 13.0 12.1 2 Required 9.2r 9.0r 15.4r 23.5 15.1 39.8 19.7 10.5 15.8 Nonborrowed 2.7r 4.7r 20.0r 24.0 14.4 44.8 18.0 13.0 10.5 4 Monetary base 4.2 6.6 8.2r 9.2 9.2 13.9 4.1 7.4 7.7 Concepts of money, liquid assets, and debt* 5 Ml 7.4 7.5 11.1 16.5 16.4 27.2 10.3 5.0 14.6 6 M2 4.4 .6 2.3 4.3 3.2 9.6 -.5 -2.1 .6 7 M3 1.8 -1.3 1.0 2.3 1.2 7.4 -2.7 -3.9 -.4 8 L -1.9 .7 .1 1.9 -1.1 8.0 2.9 -1.4 n.a. 9 Debt 4.2 4.5r 4.2r 3.8 3.0 4.6 5.3 5.1 n.a. Nontrgnsaction components 10 In M2 3.4 -1.6 -.7 .0 -1.5 3.3 -4.5 -4.7 -4.8 11 In M3 only6 -9.7 -9.9 -5.2 -7.2 -8.4 -3.0 -12.7 -13.0 -5.1 Time and savings deposits Commercial banks 12 Savings, including MMDAs 13.1 13.2 16.0 19.2 20.0 22.9 11.1 13.8 7.8 13 Small time 1.1 1.5 -8.4 -18.9 -21.7 -23.5 -14.6 -7.0 -17.2 14 Large time ' -3.3 -8.0 -14.4 -18.2 -25.8 -16.3 -17.2 -17.5 -7.2 Thrift institutions 15 Savings, including MMDAs 16.8 9.8 10.2 22.4 23.8 30.5 23.4 15.8 19.4 16 Small time -14.2 -24.2 -22.5 -24.2 -24.0 -30.3 -27.0 -39.3 -24.3 17 Large time8' -35.0 -40.3 -36.5 -29.7 -24.5 -33.9 -45.5 -36.3 -42.3 Money market mutual funds 18 General purpose and broker-dealer 7.6 -4.7 -4.0 1.0 -1.3 12.7 --1199..55 -13.1 3.0 19 Institution-only 28.8 11.4 37.2 26.9 22.1 38.2 -18.5 25.3 35.5 Debt components4 20 6.8 13.9 12.3r 8.2 6.0 7.0 15.0 13.1 n.a. 21 Nonfederal 3.4 1.6r 1.6r 2.3 2.1 3.8 2.2 2.4 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, or "breaks", associ- depository institutions, the U.S. government, money market funds, and foreign ated with regulatory 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 (includ- deposits. ing MMDAs) and small time deposits (time deposits—including retail repurchase 6. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U.S. agreements (RPs)—in amounts of less than $100,000), and (3) balances in both residents, and (4) money market fund balances (institution-only), less (5) a taxable and tax-exempt general-purpose and broker-dealer money market funds. consolidation adjustment that represents the estimated amount of overnight RPs Excludes individual retirement accounts (IRAs) and Keogh balances at depository and Eurodollars held by institution-only money market funds. This sum is institutions and money market funds. Also excludes all balances held by U.S. seasonally adjusted as a whole. commercial banks, money market funds (general purpose and broker-dealer), 7. Small time deposits—including retail RPs—are those issued in amounts of foreign governments and commercial banks, and the U.S. government. Season- less than $100,000. All IRA and Keogh account balances at commercial banks and ally adjusted M2 is computed by adjusting its non-Mi component as a whole and thrift institutions are subtracted from small time deposits. then adding this 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 CREDIT1 Millions of dollars Monthly averages of Weekly averages of daily figures for week ending daily figures Factor 1992 1992 Mar. Apr. May Apr. 15 Apr. 22 Apr. 29 May 6 May 13 May 20 May 27 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 308,062 305,176 306,356 305,488 305,322 304,600 304,893 307,317 304,889 307,952 U.S. government securities 2 Bought outright—system account 265,433 266,478 267,310 266,011 266,372 265,764 266,709 266,690 266,344 267,758 3 Held under repurchase agreements — 3,466 938 2,380 2,338 0 1,152 0 2,548 2,433 4,886 Federal agency obligations 4 Bought outright 5,960 5,910 5,879 5,910 5,910 5,910 5,910 5,910 5,910 5,865 5 Held under repurchase agreements 93 12 102 20 0 24 0 79 0 372 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 38 59 57 24 55 61 40 116 36 52 8 Seasonal credit 32 47 99 39 46 67 70 79 103 122 9 Extended credit 2 2 0 1 3 4 0 0 0 0 10 Float 576 823 355 364 2,068 384 944 283 250 40 11 Other Federal Reserve assets 32,462 30,907 30,174 30,782 30,867 31,235 31,220 31,611 29,812 28,858 12 Gold stock 11,058 11,057 11,057 11,057 11,057 11,057 11,057 11,057 11,057 11,057 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 21,120 21,157r 21,191 21,153r 21,160" 21,168r 21,175 21,184 21,192 21,201 ABSORBING RESERVE FUNDS 15 Currency in circulation 302,799 305,492r 308,110 305,988r 306,193r 305,516r 306,595 307,764 307,802 309,054 16 Treasury cash holdings 711 707 692 706 710 709 704 697 691 684 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 5,614 4,868 5,108 4,435 5,178 4,781 4,774 5,012 5,070 5,438 18 Foreign 218 202 212 212 173 221 200 222 213 212 19 Service-related balances and adjustments 4,665 4,846 5,249 4,817 4,794 4,799 5,717 4,939 5,214 5,191 20 Other 278 268 261 299 245 239 268 264 266 263 21 Other Federal Reserve liabilities and capital 7,886 8,155 8,227 8,225 8,282 8,272 7,956 8,101 8,187 8,382 22 Reserve balances with Federal Reserve Banks 28,087r 22,869 20,763 23,035 21,981 22,304 20,929 22,577 19,713 21,003 End-of-month figures Wednesday figures 1992 1992 Mar. Apr. May Apr. 15 Apr. 22 Apr. 29 May 6 May 13 May 20 May 27 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 306,524 306,002r 306,370 312,694 302,772 304,818 304,260 308,746 301,070 313,298 U.S. government securities2 2 Bought outright—system account 265,7% 267,945 270,808 266,234 265,598 266,321 266,490 266,414 266,010 266,776 3 Held under repurchase agreements ... 1,805 0 244 9,477 0 713 0 3,716 0 10,436 Federal agency obligations 4 Bought outright 5,960 5,910 5,750 5,910 5,910 5,910 5,910 5,910 5,910 5,750 5 Held under repurchase agreements ... 0 0 0 120 0 55 0 0 0 660 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 23 49 22 45 39 79 23 673 56 80 8 Seasonal credit 29 66 128 42 56 71 73 92 114 123 9 Extended credit 0 0 0 0 5 0 0 0 0 0 10 Float 512 928r 371 -69 141 288 380 180 -573 369 11 Other Federal Reserve assets 32,400 31,103 29,048 30,935 31,022 31,381 31,383 31,761 29,554 29,104 12 Gold stock 11,057 11,057 11,057 11,057 11,057 11,057 11,057 11,057 11,057 11,057 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 21,138 21,175r 21,210 21,153r 21,160* 21,168r 21,175 21,184 21,192 21,201 ABSORBING RESERVE FUNDS 15 Currency in circulation 303,212 306,373r 309,719 306,366r 306,122r 305,789r 307,407 307,979 308,251 309,769 16 Treasury cash holdings 711 705 682 710 710 705 698 692 684 682 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 6,846 4,692 5,583 4,129 4,836 5,806 5,269 4,816 4,703 5,195 18 Foreign 262 206 217 184 160 254 233 193 209 191 19 Service-related balances and adjustments 4,610 5,717 5,251 4,817 4,794 4,799 5,717 4,939 5,214 5,191 20 Other 364 260 224 266 192 245 259 249 272 270 21 Other Federal Reserve liabilities and capital 8,098 7,906 8,716 7,961 8,158 7,918 7,774 8,061 8,008 8,301 22 Reserve balances with Federal Reserve Banks 24,637 22,392r 18,263 30,488 20,036 21,545 19,154 24,078 15,9% 25,974 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—fiilly guaranteed by U.S. government securities float, pledged with Federal Reserve Banks—and excludes any securities sold and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Nonfinancial Statistics • August 1992 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Prorated monthly averages of biweekly averages RRReeessseeerrrvvveee ccclllaaassssssiiifffiiicccaaatttiiiooonnn 1989 1990 1991 1991 1992 Dec. Dec. Dec. Nov. Dec. Jan. Feb. Mar. Apr. May 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 35,436 30,237 26,659 25,004 26,659 25,416 24,918 28,057 22,655 21,071 22222 TTTTToooootttttaaaaalllll vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh33333 29,828 31,786 32,513 31,714 32,513 34,135 34,218 31,647 31,071 31,197 33333 AAAAAppppppppppllllliiiiieeeeeddddd vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh 27,374 28,884 28,872 28,053 28,872 30,3% 30,320 28,225 27,800 27,754 44444 SSSSSuuuuurrrrrpppppllllluuuuusssss vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh55555 2,454 2,903 3,641 3,661 3,641 3,739 3,897 3,422 3,271 3,442 55555 TTTTToooootttttaaaaalllll rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss66666 62,810 59,120 55,532 53,057 55,532 55,812 55,238 56,282 50,455r 48,825 6 7 6 7 6 7 6 7 6 7 RRRRR EEEEExxxxx eeeeeqqqqq ccccc uuuuu eeeee iiiii sssss rrrrr sssss eeeee ddddd rrrrreeeee sssss rrrrreeeee eeeee sssss rrrrrvvvvv eeeee eeeee rrrrrvvvvv bbbbb eeeeesssss aaaaa lllllaaaaannnnnccccceeeeesssss aaaaattttt RRRRReeeeessssseeeeetttttyyyyyeeeee BBBBBaaaaannnnnkkkkksssss iiiii ..... ..... ..... ..... ..... ..... 61,8 9 8 2 7 3 57 1 , , 4 6 5 6 6 4 54,5 9 5 7 3 9 52,1 8 6 9 5 2 54,5 9 5 7 3 9 54 1 , , 8 0 0 0 9 3 54 1 , , 1 0 7 6 4 5 55 1 , , 2 0 5 2 4 8 49 l, , 1 3 3 1 7 8 r r 47 1 , , 8 0 2 0 5 1 88888 TTTTToooootttttaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 265 326 192 108 192 233 77 91 90 155 99999 SSSSSeeeeeaaaaasssssooooonnnnnaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss 84 76 38 86 38 17 22 32 47 98 1111100000 EEEEExxxxxttttteeeeennnnndddddeeeeeddddd cccccrrrrreeeeedddddiiiiittttt99999 20 23 1 1 1 1 2 2 2 0 Biweekly averages of daily figures for weeks ending 1992 Feb. 5 Feb. 19 Mar. 4 Mar. 18 Apr. 1 Apr. 15 Apr. 29 May 13r May 27 June 10 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 22,374 25,108 25,922 29,111 27,578 22,885 22,nr 21,746 20,356 21,379 22222 TTTTToooootttttaaaaalllll vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh33333 36,384 34,354 32,944 30,564 32,414 30,456 31,643 30,346 32,069 30,909 33333 AAAAAppppppppppllllliiiiieeeeeddddd vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh44444 32,137 30,494 29,169 27,398 28,826 27,353 28,225 27,091 28,418 27,591 44444 SSSSSuuuuurrrrrpppppllllluuuuusssss vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh''''' 4,248 3,860 3,775 3,166 3,588 3,103 3,418 3,256 3,651 3,318 55555 TTTTToooootttttaaaaalllll rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 54,511 55,602 55,091 56,509 56,403 50,238 50,362r 48,836 48,774 48,970 66666 RRRRReeeeeqqqqquuuuuiiiiirrrrreeeeeddddd rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 53,488 54,435 54,151 56,001 54,788 49,174 49.1501 48,209 47,277 48,492 77777 EEEEExxxxxccccceeeeessssssssss rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss ............... 1,023 1,168 941 508 1,616 1,065 l,212r 628 1,497 478 88888 TTTTToooootttttaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss88888 130 69 63 75 117 56 118 153 157 152 99999 SSSSSeeeeeaaaaasssssooooonnnnnaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss 20 22 24 29 38 37 57 75 113 125 1111100000 EEEEExxxxxttttteeeeennnnndddddeeeeeddddd cccccrrrrreeeeedddddiiiiittttt99999 2 2 3 2 1 1 4 0 0 0 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. Consists of borrowing at the discount window under the terms and condirequirements, maintenance periods end thirty days after the lagged computation tions established for the extended credit program to help depository institutions periods during which the balances are held. deal with sustained liquidity pressures. Because there is not the same need to 4. All vault cash held during the lagged computation period by "bound" repay such borrowing promptly as there is with traditional short-term adjustment institutions (that is, those whose required reserves exceed their vault cash) plus credit, the money market impact of extended credit is similar to that of the amount of vault cash applied during the maintenance period by "nonbound" nonborrowed reserves. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A7 1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Banks1 Millions of dollars, averages of daily figures 1992, week ending Monday SSoouurrccee aanndd mmaattuurriittyy Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 Apr. 6 Apr. 13 Apr. 20 Apr. 27 Federal funds purchased, repurchase agreements, and other selected borrowings From commercial banks in the United States 1 For one day or under continuing contract 79,013 81,871 77,493' 72,856 73,215 78,301 79,263 85,767 74,098 2 For all other maturities 16,533 16,364 16,666 16,554r 15,967 14,822 16,018 16,704 16,431 From other depository institutions, foreign banks and official institutions, and U.S. government agencies 3 For one day or under continuing contract 22,497 19,725 1199,,335599rr 19,026 18,107 17,157 16,276 15,407 18,013 4 For all other maturities 19,935 21,308 21,284 21,497 20,489 19,898 19,454 21,761 22,239 Repurchase agreements on U.S. government and federal agency securities Brokers and nonbank dealers in securities 5 For one day or under continuing contract 13,733 13,735 12,281 12,199 12,219 11,942 10,160 10,060 9,487 6 For all other maturities 15,230 15,525 17,124 17,656 17,192 15,195 15,240 15,029 15,667 All other customers 7 For one day or under continuing contract 26,888 25,523r 25,290r 25,761r 26,121r 25,001 24,979 24,005 24,382 8 For all other maturities 11,784 11,577r 12,182r I2,297r 12,788r 13,181 12,683 13,334 12,968 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 56,720 54,496 51,403 49,600 47,483r 52,484 49,818 50,401 47,103 10 To all other specified customers 20,638 21,459r 23,411 22,527 20,703 19,607 21,322 24,606 21,913 1. Banks with assets of $4 billion or more as of Dec. 31, 1988. 2. Brokers and nonbank dealers in securities, other depository institutions, Data in this table also appear in the Board's H.5 (507) weekly statistical release. foreign banks and official institutions, and U.S. government agencies. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Nonfinancial Statistics • August 1992 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Adjustment credit1 Seasonal credit2 Extended credit3 Federal Reserve Bank 6/3 O 0 n /9 2 Effective date Previous rate 6/3 O 0 n /9 2 Effective date Previous rate 6/3 O 0 n /9 2 Effective date Previous rate Boston 3.5 12/20/91 4.5 3.80 6/25/92 3.85 6/25/92 4.35 New York ... 12/20/91 6/25/92 6/25/92 Philadelphia.. 12/20/91 6/25/92 6/25/92 Cleveland 12/20/91 6/25/92 6/25/92 Richmond 12/20/91 6/25/92 6/25/92 Atlanta 12/20/91 6/25/92 6/25/92 Chicago 12/20/91 6/25/92 6/25/92 St. Louis 12/24/91 6/25/92 6/25/92 Minneapolis.. 12/23/91 6/25/92 6/25/92 Kansas City.. 12/20/91 6/25/92 6/25/92 Dallas 12/20/91 6/25/92 6/25/92 San Francisco 3.5 12/20/91 6/25/92 3.85 4.30 6/25/92 4.35 Range of rates for adjustment credit in recent years4 Range (or F.R. Range (or F.R. Range (or F.R. Effective date A le l v l e F l) . — R. Ba o n f k Effective A le l v l e F l) . — R. Ba o n f k Effective date A le l v l e F l) . — R. Ba o n f k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1977. 6 6 1981-—May 5 13-14 14 1986—Mar. 7 7-7.5 7 14 14 10 7 7 1978-—Jan. 9 6-6.5 6.5 Nov. 7 13-14 13 Apr. 21 6.5-7 6.5 70 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 17 7 7 22 5.5 5.5 July 3 7-7.25 7.25 1982---JJuullyy ?0 11.5-12 11.5 10 7.25 7.25 73 11.5 11.5 1987—Sept. 4 5.5-6 6 A Se u p g t . . 7V1 7. 8 7 5 7 8 . 75 AAuugg.. 7 3 11- 1 1 1 1 .5 1 11 1 11 6 6 Oct. 16 8-8.5 8.5 16 10.5 10.5 1988—Aug. 9 6-6.5 6.5 70 8.5 8.5 11 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 ?n 10 10 Nov. 7? 9-9.5 9 27 Aug. 17 10-10.5 10.5 76 9 9 6.5 6.5 70 10.5 10.5 Dec. 14 8.5-9 9 1990—Dec. 19 Sept. 19 10.5-11 11 IS 8.5-9 8.5 6-6.5 6 71 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 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 79 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 ?() 7.5-8 7.5 Dec. 20 3.5 3.5 16 11 11 74 7.5 7.5 24 79 10 10 In effect June 30, 1992 3.5 3.5 July 78 10-11 10 Sept. 76 11 11 Nov. 17 12 12 Dec. 5 12-13 13 1. Available on a short-term basis to help depository institutions meet tempo- ordinarily is charged on extended-credit loans outstanding less than thirty days; rary needs for funds that cannot be met through reasonable alternative sources. however, at the discretion of the Federal Reserve Bank, this time period may be The highest rate established for loans to depository institutions may be charged on shortened. Beyond this initial period, a flexible rate somewhat above rates on adjustment-credit loans of unusual size that result from a major operating problem market sources of funds is charged. The rate ordinarily is reestablished on the first at the borrower's facility. business day of each two-week reserve maintenance period, but it is never less 2. Available to help relatively small depository institutions meet regular than the discount rate applicable to adjustment credit plus 50 basis points. seasonal needs for funds that arise from a clear pattern of intra-yearly movements 4. For earlier data, see the following publications of the Board of Governors: in their deposits and loans and that cannot be met through special industry Banking and Monetary Statistics, 1914-1941, and 1941-1970; and the Annual lenders. The discount rate on seasonal credit takes into account rates on market Statistical Digest, 1970-1979. sources of funds and ordinarily is reestablished on the first business day of each In 1980 and 1981, the Federal Reserve applied a surcharge to short-term two-week reserve maintenance period; however, it is never less than the discount adjustment-credit borrowings by institutions with deposits of $500 million or more rate applicable to adjustment credit. that had borrowed in successive weeks or in more than four weeks in a calendar 3. May be made available to depository institutions when similar assistance is quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7, not reasonably available from other sources, including special industry lenders. 1980. A surcharge of 2 percent was reimposed on Nov. 17, 1980; the surcharge Such credit may be provided when exceptional circumstances (including sus- was subsequently raised to 3 percent on Dec. 5, 1980, and to 4 percent on May 5, tained deposit drains, impaired access to money market funds, or sudden 1981. The surcharge was reduced to 3 percent effective Sept. 22, 1981, and to 2 deterioration in loan repayment performance) or practices involve only a partic- percent effective Oct. 12, 1981. As of Oct. 1, 1981, the formula for applying the ular 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 INSTITUTIONS' Type of deposit2 Net transaction accounts3 1 $0 million-$42.2 million... 12/17/91 2 More than $42.2 million4.. 4/2/92 3 Nonpersonal time deposits' 12/27/90 4 Eurocurrency liabilities6 .. 12/27/90 1. Required reserves must be held in the form of deposits with Federal Reserve permit no more than six preauthorized, automatic, or other transfers per month, Banks or vault cash. Nonmember institutions may maintain reserve balances with of which no more than three may be checks, are not transaction accounts (such a Federal Reserve Bank indirectly on a pass-through basis with certain approved 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 1V5 percent for the maintenance period that began Dec. 13, 1990, and the event of a decrease. On Dec. 17, 1991, the exemption was raised from $3.4 to zero for the maintenance period that began Dec. 27, 1990. The reserve million to $3.6 million. The exemption applies in the following order: (1) net requirement on nonpersonal time deposits with an original maturity of 1 Vi years negotiable order of withdrawal (NOW) accounts (NOW accounts less allowable or more has been zero since Oct. 6, 1983. deductions); and (2) net other transaction accounts. The exemption applies only to For institutions that report quarterly, the reserve requirement on nonpersonal accounts that would be subject to a 3 percent reserve requirement. time deposits with an original maturity of less than 1 Vi years was reduced from 3 3. Include all deposits against which the account holder is permitted to make percent to zero on Jan. 17, 1991. withdrawals by negotiable or transferable instruments, payment orders of with- 6. The reserve requirement on Eurocurrency liabilities was reduced from 3 drawal, and telephone and preauthorized transfers in excess of three per month percent to zero in the same manner and on the same dates as were the reserve for the purpose of making payments to third persons or others. However, money requirement on nonpersonal time deposits with an original maturity of less than market deposit accounts (MMDAs) and similar accounts subject to the rules that 1 Vi years (see note 4). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Nonfinancial Statistics • August 1992 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars 1991 1992 TTyyppee ooff ttrraannssaaccttiioonn 11998899 11999900 11999911 Oct. Nov. Dec. Jan. Feb. Mar. Apr. U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 14,284 24,739 20,158 2,198 2,823 837 0 123 505 0 2 Gross sales 12,818 7,291 120 0 0 0 1,628 0 0 0 3 Exchanges 231,211 241,086 277,314 25,409 24,141 21,967 26,750 24,435 21,674 27,526 4 Redemptions 12,730 4,400 1,000 0 0 0 1,600 0 0 0 Others within one year 5 Gross purchases 327 425 3,043 0 178 0 0 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 2,002 1,655 1,570 1,298 6,020 2,552 1,100 8 Exchanges -25,783 -27,424 -28,090 -2,034 -2,585 -3,562 -989 -2,742 -2,512 -1,863 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 2,133 300 0 1,027 1,425 0 U Gross sales 490 200 0 0 0 0 0 0 0 0 12 Maturity shifts -25,534 -21,770 -21,211 -1,877 -1,492 -1,570 -1,174 -6,020 -2,552 -877 13 Exchanges 23,250 25,410 24,594 1,686 2,135 3,562 539 2,292 2,512 1,484 Five to ten years 14 Gross purchases 287 0 1,280 0 880 0 0 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 -126 -163 0 -124 0 0 -223 17 Exchanges 1,934 789 2,894 347 300 0 451 300 0 379 More than ten years 18 Gross purchases 284 0 375 0 375 0 0 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 0 0 0 0 0 0 0 21 Exchanges 600 1,226 600 0 150 0 0 150 0 0 All maturities 22 Gross purchases 16,617 25,414 31,439 2,198 6,390 1,137 0 1,150 1,930 0 23 Gross sales 13,337 7,591 120 0 0 0 1,628 0 0 0 24 Redemptions 13,230 4,400 1,000 0 0 0 1,600 0 0 0 Matched transactions 25 Gross sales 1,323,480 1,369,052 1,570,456 137,073 98,063 118,127 136,922 123,000 128,230 125,999 26 Gross purchases 1,326,542 1,363,434 1,571,534 135,281 97,925 118,263 136,282 124,654 126,673 128,149 Repurchase agreements2 27 Gross purchases 129,518 219,632 310,084 12,432 1144,,116655 5511,,334455 21,412 9,824 48,758 18,432 28 Gross sales 132,688 202,551 311,752 3,718 22,879 36,000 33,228 13,353 46,953 20,237 29 Net change in U.S. government securities -10,055 24,886 29,729 9,121 -2,462 16,619 -15,684 -725 2,178 345 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 0 0 0 0 0 0 0 0 0 0 31 Gross sales 0 0 5 0 0 0 0 0 0 0 32 Redemptions 442 183 292 14 51 45 85 0 0 49 Repurchase agreements2 33 Gross purchases 38,835 41,836 22,807 714 227755 1,744 390 571 1,640 224 34 Gross sales 40,411 40,461 23,595 695 294 1,191 808 706 1,640 224 35 Net change in federal agency obligations -2,018 1,192 -1,085 5 -70 508 -503 -135 0 -49 36 Total net change in System Open Market Account -12,073 26,078 28,644 9,126 -2,532 17,127 -16,186 -860 2,178 295 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 Apr. 29 May 6 May 13 May 20 May 27 Mar. 31 Apr. 30 May 29 Consolidated condition statement ASSETS 1 Gold certificate account 11,057 11,057 11,057 11,057 11,057 11,057 11,057 11,057 2 Special drawing rights certificate account 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 3 561 551 547 530 495 599 554 492 Loans 4 To depository institutions 150 % 765 170 203 52 115 115500 5 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 5,910 5,910 5,910 5,910 5,750 5,960 55,,991100 55775500 8 Held under repurchase agreements 55 0 0 0 0 0 0 0 9 Total U.S. Treasury securities 267,034 266,490 270,130 266,010 277,212 267,601 267,945 271,052 10 Bought outright2 266,321 266,490 266,414 266,010 266,776 265,7% 267,945 270,808 11 Bills 130,017 130,187 130,110 129,706 130,272 129,492 131,642 134,304 1? Notes 104,260 140,160 104,260 103,960 104,160 104,260 104,260 104,160 13 Bonds 32,043 32,043 32,043 32,343 32,343 32,043 32,043 32,343 14 Held under repurchase agreements 713 0 3,716 0 10,436 1,805 0 244 15 Total loans and securities 273,149 272,497 276,806 272,090 283,825 273,613 273,971 276,952 16 Items in process of collection 5,441 6,185 5,244 5,358 7,413 8,172 5,236 4,754 17 Bank premises 1,014 1,016 1,021 1,021 1,021 1,007 1,014 1,021 Other assets 18 Denominated in foreign currencies 24,034 23,989 23,991 24,059 22,856 26,060 23,964 2233,,009999 19 All other4 6,404 6,331 6,779 4,539 5,342 5,444 6,197 4,901 20 Total assets 331,678 331,645 335,463 328,671 342,026 335,971 332,011 332,293 LIABILITIES 21 Federal Reserve notes 285,887 287,480 288,034 288,273 289,745 283,383 286,457 289,684 22 Total deposits 32,980 30,622 34,365 27,440 37,140 36,952 32,960 29,527 23 Depository institutions 26,675 24,861 29,108 22,256 31,484 29,480 27,801 23,503 24 U.S. Treasury—General account 5,806 5,269 4,816 4,703 5,195 6,846 4,692 5,583 25 Foreign—Official accounts 254 223 193 209 191 262 206 217 26 245 259 249 272 270 364 260 224 71 Deferred credit items 4,894 5,769 5,388 4,951 6,840 7,538 4,688 4,366 28 Other liabilities and accrued dividends 2,002 1,965 2,105 2,035 2,088 2,226 2,052 2,089 29 Total liabilities 325,763 325,836 329,507 322,698 335,813 330,099 326,157 325,667 CAPITAL ACCOUNTS 30 Capital paid in 2,788 2,801 2,806 2,811 2,811 2,745 2,790 2,813 31 Surplus 2,652 2,652 2,652 2,652 2,652 2,598 2,652 2,652 32 Other capital accounts 476 356 498 510 750 529 413 1,162 33 Total liabilities and capital accounts 331,678 331,645 335,463 328,671 342,026 335,971 332,011 332,293 34 MEMO: Marketable U.S. Treasury securities held in custody for foreign and international accounts 268,888 270,314 273,754 276,729 275,242 271,183 274,023 276,920 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to Bank) 358,729 359,114 359,652 360,337 360,671 362,146 358,760 360,961 36 LESS: Held by Federal Reserve Bank 72,843 71,633 71,619 72,064 70,927 78,762 72,303 71,277 37 Federal Reserve notes, net 285,887 287,480 288,034 288,273 289,745 283,383 286,457 289,684 Collateral held against notes, net: 38 Gold certificate account 11,057 11,057 11,057 11,057 11,057 11,057 11,057 1111,,005577 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 264,812 266,405 266,958 267,198 268,670 262,308 265,382 268,609 42 Total collateral 285,887 287,480 288,034 288,273 289,745 283,383 286,457 289,684 1. Some of the data in this table also appear in the Board's H.4.1 (503) weekly 3. Valued monthly at market exchange rates. statistical release. For ordering address, see inside front cover. Components may 4. Includes special investment account at the Federal Reserve Bank of Chicago not sum to totals because of rounding. in Treasury bills maturing within ninety days. 2. Includes securities loaned—fully guaranteed by U.S. Treasury securities 5. Includes exchange-translation account reflecting the monthly revaluation at pledged with Federal Reserve Banks—and excludes securities sold and scheduled market exchange rates of foreign-exchange commitments. to be bought back under matched sale-purchase transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Nonfinancial Statistics • August 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 Apr. 29 May 6 May 13 May 20 May 27 Mar. 31 Apr. 30 May 29 1 Total loans 150 % 766 170 203 52 115 105 2 Within fifteen days 145 51 707 157 189 46 92 104 3 Sixteen days to ninety days 6 45 59 13 14 6 24 47 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 267,034 266,490 270,130 266,010 266,786 265,7% 267,945 270,808 10 Within fifteen days2 14,707 17,310 17,951 13,164 12,428 6,571 13,540 7,584 11 Sixteen days to ninety days 61,967 61,679 61,428 61,116 62,345 67,222 57,553 72,122 12 Ninety-one days to one year 88,023 84,257 87,507 86,531 86,614 89,745 93,608 85,703 n One year to five years 62,396 63,302 63,302 64,689 64,889 62,473 63,302 64,889 14 Five years to ten years 15,347 15,347 15,347 15,615 15,615 15,192 15,347 15,615 15 More than ten years 24,594 24,594 24,594 24,894 24,894 24,594 24,594 24,894 16 Total federal agency obligations 5,965 5,910 5,910 5,910 5,751 5,960 5,910 5,750 17 Within fifteen days2 160 0 45 326 322 220 105 321 18 Sixteen days to ninety days 677 775 730 449 496 524 677 496 19 Ninety-one days to one year 1,499 1,506 1,506 1,506 1,460 1,515 1,499 1,460 20 One year to five years 2,733 2,733 2,733 2,733 2,577 2,750 2,733 2,577 21 Five years to ten years 742 742 742 742 742 797 742 742 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 BASE1 Billions of dollars, averages of daily figures 1991r 1992r 11998888 11998899 11999900 11999911 IItteemm DDeecc..rr DDeecc..rr DDeecc..rr DDeecc// Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Seasonally adjusted AADDJJUUSSTTEEDD FFOORR CCHHAANNGGEESS IINN RREESSEERRVVEE RREEQQUUIIRREEMMEENNTTSS22 11 TToottaall rreesseerrvveess33 40.47 40.56 41.83 45.60 44.14 44.79 45.60 46.19 47.75 48.48 49.00 49.49 22 NNoonnbboorrrroowweedd rreesseerrvveess44 38.75 40.29 41.51 45.41 43.88 44.68 45.41 45.95 47.67 48.38 48.91 49.34 33 NNoonnbboorrrroowweedd rreesseerrvveess pplluuss eexxtteennddeedd ccrreeddiitt 40.00 40.31 41.53 45.41 43.89 44.68 45.41 45.95 47.67 48.39 48.91 49.34 44 RReeqquuiirreedd rreesseerrvveess 39.42 39.64 40.17 44.62 43.06 43.89 44.62 45.18 46.68 47.45 47.86 48.49 55 MMoonneettaarryy bbaassee 256.97 267.77 293.29 317.25 313.28 315.33 317.25 319.70 323.41 324.51 326.50 328.59 Not seasonally adjusted 6 Total reserves 41.65 41.77 43.07 46.97 43.67 44.86 46.97 47.35 46.85 47.69 50.01 48.62 7 Nonborrowed reserves 39.93 41.51 42.74 46.78 43.41 44.75 46.78 47.11 46.77 47.59 49.92 48.47 8 Nonborrowed reserves plus extended credit . 41.17 41.53 42.77 46.78 43.42 44.75 46.78 47.11 46.77 47.60 49.93 48.47 9 Required reserves8 40.60 40.85 41.40 46.00 42.58 43.97 46.00 46.34 45.78 46.66 48.88 47.62 10 Monetary base9 260.41 271.18 296.68 321.06 311.49 315.15 321.06 320.43 320.38 322.69 327.45 328.37 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS1 11 Total reserves11 63.75 62.81 59.12 55.53 51.58 53.06 55.53 55.81 55.24 56.28 50.45 48.83 12 Nonborrowed reserves 62.03 62.54 58.79 55.34 51.32 52.95 55.34 55.58 55.16 56.19 50.36 48.67 13 Nonborrowed reserves plus extended credit . 63.27 62.56 58.82 55.34 51.33 52.95 55.34 55.58 55.16 56.19 50.37 48.67 14 Required reserves 62.70 61.89 57.46 54.55 50.50 52.16 54.55 54.81 54.17 55.25 49.32 47.82 15 Monetary base12. 283.00 292.55 313.70 333.61 322.71 326.88 333.61 333.09 333.19 335.82 332.69 333.79 16 Excess reserves 1.05 .92 1.66 .98 1.08 .89 .98 1.00 1.06 1.03 1.14 1.00 17 Borrowings from the Federal Reserve 1.72 .27 .33 .19 .26 .11 .19 .23 .08 .09 .09 .15 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, DC 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. (See also table 1.10) (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 I) 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 • August 1992 21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURESi Billions of dollars, averages of daily figures 1992 1988 1989 1990 1991 Dec. Dec. Dec. Dec. Feb.r Mar. Apr.r May Seasonally adjusted Measures2 1 Ml 786.9 794.1 826.1 898. r 910.4 931.0 939.0 943.1 2 M2 3,071.1 3,227.3 3,339.0 3,439.3r 3,448.1 3,475.2 3,473.5 3,468.0 3 M3 3,923.1 4,059.8 4,114.6 4,171.4 4,175.1 4,200.1 4,189.9 4,178.3 4 L 4,677.9 4,891.7 4,966.6 4,988.2' 4,983.3 5,017.1 5,031.9 n.a. 5 Debt 9,312.6 10,059.6 10,749.9 11,216.2 11,240.1 11,279.3 11,335.1 n.a. Ml components 6 Currency . 212.3 222.6 246.8 267.3 269.4 271.6 271.8 273.6 7 Travelers checks4 7.5 7.4 8.3 8.2 8.2 8.1 8.0 8.0 8 Demand deposits 286.5 279.0 277.1 289.5 293.8 305.1 309.7 311.3 9 Other checkable deposits6 280.6 285.1 293.9 333.2 339.0 346.2 349.4 350.2 Nontrgnsaction components 10 In M2 2,284.2 2,433.2 2,512.9 2,541.2 2,537.7 2,544.2 2,534.5 2,524.9 11 In M38 852.0 832.5 775.6 732.0r 727.0 724.9 716.4 710.3 Commercial banks 12 Savings deposits, HKluding MMDAs 542.7 541.4 581.9 664.9 676.0 688.9 695.3 703.4 13 Small time deposits9. 447.0 531.0 606.4 598.5 587.7 576.2 569.2 566.0 14 Large time deposits10, " 366.9 398.2 374.0 354.0 346.4 341.7 336.8 332.4 Thrift institutions 15 Savings deposits, including MMDAs 383.5 349.7 338.8 377.7r 385.2 395.0 402.7 408.1 16 Small time deposits' 585.9 617.5 562.3 464.5 455.0 443.0 432.6 418.3 17 Large time deposits10 174.3 161.1 120.9 83.1 81.4 79.1 76.1 73.8 Money market mutual funds 18 General purpose and broker-dealer 241.9 316.3 348.9 360.5 360.0 363.7 358.0 354.2 19 Institution-only 91.0 107.2 133.7 179.1 182.4 188.2 185.3 189.2 Debt components 20 Federal debt 2,101.5 2,249.8 2,493.6 2,766.0 2,780.1 2,794.2 2,830.0 n.a. 21 Nonfederal debt 7,211.1 7,809.7 8,256.3 8,450.3 8,460.0 8,485.1 8,505.1 n.a. Not seasonally adjusted Measures2 22 Ml 804.1 811.9 844.1 917.3 918.2 916.8 930.8 955.0 23 M2 3,083.8 3,240.0 3,351.9 3,453.2 3,456.1 3,462.4 3,474.1 3,486.0 24 M3 3,934.7 4,070.3 4,124.7 4,182.1 4,180.2 4,189.6 4,194.9 4,195.1 25 L 4,694.9 4,911.0 4,986.4 5,008.4r 5,001.4 5,010.4 5,038.9 n.a. 26 Debt 9,298.0 10,045.1 10,737.2 11,203.6 11,228.1 11,249.9 11,300.4 n.a. Ml components 27 Currency 214.8 225.3 249.5 270.0 267.8 269.5 271.0 273.4 28 Travelers checks 6.9 6.9 7.8 7.7 7.8 7.8 7.7 7.6 29 Demand deposits 298.9 291.5 289.9 303.0 300.0 296.4 302.1 313.0 30 Other checkable deposits 283.5 288.1 296.9 336.5 342.5 343.2 349.9 361.0 Nontrgnsaction components 31 In M2 2,279.7 2,428.1 2,507.8 2,535.9 2,537.9 2,545.6 2,543.3 2,531.0 32 In M38 850.8 830.3 772.8 728.9 724.2 727.1 720.9 709.0 Commercial banks 33 Savings deposits, including MMDAs 543.8 543.0 580.0 662.4 672.3 685.2 696.8 706.2 34 Small time deposits9. 446.0 529.5 606.3 598.7 589.5 577.6 569.5 565.5 35 Large time deposits 11 365.9 397.1 373.0 352.8 344.0 340.6 337.3 331.3 Thrift institutions 36 Savings deposits, including MMDAs 381.1 347.6 337.7 376.3 383.1 392.9 403.7 409.8 37 Small time deposits 584.9 616.0 562.2 464.6 456.4 444.1 432.8 417.9 38 Large time deposits10 175.2 162.0 120.6 82.8 80.9 78.8 76.3 73.6 Money market mutual funds 39 General purpose and broker-dealer 240.8 314.6 346.8 358.1 359.5 368.8 366.9 360.5 40 Institution-only 91.4 107.8 134.4 180.3 188.1 196.9 191.4 190.9 Repurchase agreements and eurodollars 41 Overnight 83.2 77.5 74.7 75.7 77.1 77.0 73.6 71.2 42 Term 227.4 178.5 158.3 128.6 126.6 128.1 131.4 128.4 Debt components 43 Federal debt 2,098.9 2,247.5 2,491.3 2,764.9 2,782.4 2,799.1 2,834.6 n.a. 44 Nonfederal debt 7,199.0 7,797.7 8,245.8 8,438.7 8,445.7 8,450.9 8,465.8 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, DC 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 aill 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) savings (includ- 5. Demand deposits at commercial banks and foreign-related institutions other ing MMDAs) and small time deposits (time deposits—including retail RPs—in than those due to depository institutions, the U.S. government, and foreign banks amounts of less than $100,000), and (3) balances in both taxable and tax-exempt and official institutions, less cash items in the process of collection and Federal general purpose and broker-dealer money market funds. Excludes individual Reserve float. retirement accounts (IRAs) and Keogh balances at depository institutions and 6. Consists of NOW and ATS account balances at all depository institutions, money market funds. Also excludes all balances held by U.S. commercial banks, credit union share draft account balances, and demand deposits at thrift institumoney market funds (general purpose and broker-dealer), foreign governments tions. and commercial banks, and the U.S. government. Seasonally adjusted M2 is 7. Sum of (1) overnight RPs and overnight Eurodollars, (2) money market fund computed by adjusting its non-Mi component as a whole and then adding this balances (general purpose and broker-dealer), (3) MMDAs, and (4) savings and result to seasonally adjusted Ml. small time deposits. M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of 8. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U.S. $100,000 or more) issued by all depository institutions, (2) term Eurodollars held residents, and (4) money market fund balances (institution-only), less a consoliby U.S. residents at foreign branches of U.S. banks worldwide and at all banking dation adjustment that represents the estimated amount of overnight RPs and offices in the United Kingdom and Canada, and (3) balances in both taxable and Eurodollars held by institution-only money market funds. tax-exempt, institution-only money market funds. Excludes amounts held by 9. Small time deposits—including retail RPs—are those issued in amounts of depository institutions, the U.S. government, money market funds, and foreign less than $100,000. All IRAs and Keogh accounts at commercial banks and thrift banks and official institutions. Also excluded is the estimated amount of overnight institutions are subtracted from small time deposits. RPs and Eurodollars held by institution-only money market funds. Seasonally 10. Large time deposits are those issued in amounts of $100,000 or more, adjusted M3 is computed by adjusting its non-M2 component as a whole and then excluding those booked at international banking facilities. adding this result to seasonally adjusted M2. 11. Large time deposits at commercial banks less those held by money market L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term funds, depository institutions, and foreign banks and official institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics • August 1992 1.22 BANK DEBITS AND DEPOSIT TURNOVER1 Debits are in billions of dollars; turnover is ratio of debits to deposits; monthly data are at annual rates 1991 1992 BBaannkk ggrroouupp,, oorr ttyyppee ooff ccuussttoommeerr Oct. Nov. Dec. Jan. Feb. Mar. DEBITS TO Seasonally adjusted Demand deposits3 1 All insured banks 256,150.4 277,916.3 281,050.1 287,974.5 278,234.2 293,941.3 306,523.0 298,098.7 305,837.0 2 Major New York City banks 129,319.9 131,784.0 140,905.5 144,228.7 140,769.6 149,502.5 161,915.3 154,751.0 164,171.5 3 Other banks 126,830.5 146,132.3 140,144.6 143,745.8 137,464.6 144,438.8 144,607.7 143,347.7 141,665.5 4 ATS-NOW accounts4 2,910.5 3,349.6 3,624.6 3,759.9 3,553.7 3,786.5 3,719.4 3,787.2 3,670.2 5 Savings deposits 547.5 558.8 1,377.4 2,733.0 3,233.1 3,296.1 3,089.7 3,142.5 3,361.0 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 735.1 800.6 817.6 837.1 787.3 841.8 870.1 817.6 832.5 7 Major New York City banks 3,421.5 3,804.1 4,391.9 4,607.9 4,214.7 4,657.4 4,997.4 4,633.3 4,974.4 8 Other banks 408.3 467.7 449.6 459.6 429.6 453.9 452.1 432.8 423.7 9 ATS-NOW accounts4 15.2 16.5 16.1 15.9 14.8 15.7 15.1 15.1 14.5 10 Savings deposits 3.0 2.9 3.3 4.4 5.0 5.0 4.7 4.7 4.9 DEBITS TO Not seasonally adjusted Demand deposits3 11 All insured banks 256,133.2 277,400.0 280,922.8 296,037.8 267,995.2 301,642.6 306,706.9 276,158.6 313,513.5 12 Major New York City banks 129,400.1 131,784.7 140,563.0 149,704.6 136,592.8 153,462.8 158,932.3 143,476.0 168,122.2 13 Other banks 126,733.0 145,615.3 140,359.7 146,333.2 131,402.4 148,179.8 147,774.6 132,682.6 145,391.3 14 ATS-NOW accounts4 2,910.7 3,342.2 3,622.4 3,770.6 3,314.0 3,841.0 4,130.2 3,450.5 3,747.2 15 MMDAs 2,677.1 2,923.8 n.a n.a n.a n.a n.a n.a n.a 16 Savings deposits 546.9 557.9 1,408.3 3,132.6 2,939.5 3,331.1 3,364.7 2,872.0 3,363.7 DEPOSIT TURNOVER Demand deposits3 17 All insured banks 735.4 799.6 817.5 858.6 751.7 823.7 851.5 778.4 878.2 18 Major New York City banks 3,426.2 3,810.0 4,370.1 4,775.5 4,059.4 4,461.1 4,633.6 4,387.6 5,308.9 19 Other banks 408.0 466.3 450.6 466.8 406.9 445.1 453.6 412.0 446.9 20 ATS-NOW accounts4 15.2 16.4 16.1 16.2 13.9 15.7 16.4 13.7 14.7 21 MMDAs6 7.9 8.0 n.a n.a n.a n.a n.a n.a n.a 22 Savings deposits 2.9 2.9 3.4 4.9 4.5 5.1 5.1 4.2 4.9 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 June July Aug. Sept. Oct. Nov. Dec. Jan.r Feb.r Mar. Apr/ May Seasonally adjusted 1 Total loans and securities2 2,773.1 2,773.7 2,776.7 2,789.0 2,805.4 2,822.6 2,837.8r 2,846.5 2,847.0 2,853.3r 2,865.5 2,863.4 2 U.S. government securities 493.5 502.4 512.6 523.0 538.7 550.8 562.5 565.7 570.4 578.4r 590.2 598.9 3 Other securities 176.3 175.8 174.4 176.3 177.9 178.8 179.3r 178.5 178.6 175.9r 176.4 174.5 4 Total loans and leases2 2,103.4 2,095.4 2,089.8 2,089.6 2,088.7 2,093.0 2,096.0r 2,102.4 2,098.1 2,099.lr 2,098.8 2,090.1 5 Commercial and industrial .,... 625.8 623.8 619.5 622.0 623.0 622.1 617.8 616.0 611.5 609. r 606.0 602.1 6 Bankers acceptances held3... 7.6 7.4 7.7 7.2 6.6 7.1 7.3 7.2 7.4 7.3r 7.0 7.2 7 Other commercial and industrial. • • • 618.3 616.3 611.8 614.8 616.4 614.9 610.5 608.8 604.1 601.8 598.9 594.9 8 U.S. addressees 612.5 610.6 605.9 608.7 609.7 608.3 603.2r 602.5 597.9 595.4 592.5 588.2 9 Non-U.S. addressees 5.7 5.7 5.9 6.1 6.7 6.7 7.4 6.3 6.3 6.4 6.5 6.6 10 Real estate 868.5 867.3 866.7 868.0 869.5 871.6 872.9 873.1 876.9 877.9r 879.3 881.1 11 Individual 373.1 370.9 370.3 367.2 364.1 363.0 363.6 363.1 363.6 362.2 361.3 359.7 12 Security 49.0 47.4 48.4 50.0 51.1 53.4 54.5 59.5 57.1 60.5r 65.0 61.8 13 Nonbank financial institutions 38.6 37.7 36.9 37.1 37.2 37.8 40.4r 39.1 40.1 40.6r 40.0 40.3 14 Agricultural 33.9 34.0 34.3 34.4 34.1 33.7 33.9 33.6 33.5 34.1 34.1 33.8 15 State and political subdivisions 31.3 30.9 30.5 30.1 29.5 29.1 28.9 28.0 28.1 28.1 27.8 27.6 16 Foreign banks 6.3 6.4 6.5 6.8 6.6 6.9 7.4r 7.3 6.8 6.5 6.6 7.3 17 Foreign official institutions 2.5 2.3 2.2 2.3 2.4 2.5 2.4 2.3 2.2 2.2 2.1 2.1 18 Lease-financing receivables 33.2 32.4 31.7 31.7 31.5 31.4 31.6 31.5 31.6 31.5 31.5 31.4 19 All other loans 41.3 42.4 42.8 39.9 39.8 41.5 42.7r 48.9 46.9 46.3 45.2 42.8 Not seasonally adjusted 20 Total loans and securities2 2.774.2 2,766.9 2,773.8 2,789.1 2,808.1 2,827.9 2,844.3r 2,843.3 2,849.6 2,854.lr 2,864.6 2,859.0 21 U.S. government securities ... 492.7 500.3 511.1 521.6 537.6 551.7 558.5 565.2 574.3 583.7r 592.5 599.0 22 Other securities 176.3 174.9 174.5 176.3 178.3 179.0 179.6r 179.0 178.6 176.0r 176.0 174.2 23 Total loans and leases2 2.105.3 2,091.7 2,088.2 2,091.2 2,092.3 2,097.2 2,106.2r 2,099.0 2,096.7 2,094.4r 2,0%. 1 2,085.9 24 Commercial and industrial ., 627.9 623.6 617.7 619.1 621.4 620.8 619.1 612.8 610.7 611.8r 608.8 604.5 25 Bankers acceptances held3 7.6 7.1 7.5 7.2 6.6 7.3 7.6 7.2 7.5 7.2 6.8 7.2 26 Other commercial and industrial 620.3 616.5 610.2 611.9 614.9 613.4 611.6r 605.6 603.2 604.5 602.0 597.3 27 U.S. addressees4 614.2 610.8 604.3 605.9 608.7 607.2 604.6r 598.8 596.5 598.0r 595.3 590.6 28 Non-U.S. addressees4 .. 6.0 5.8 5.8 6.0 6.2 6.2 7.0 6.8 6.7 6.6 6.7 6.7 29 Real estate 868.8 868.4 868.6 869.0 870.9 872.9 873. r 872.5 873.9 874.5r 878.1 881.7 3 3 1 0 S In e d c i u v r i i d ty u al 3 4 7 9 1 . . 1 0 3 4 6 6 8 . . 2 2 3 4 6 7 9 . . 3 3 3 4 6 8 8 . . 6 7 3 5 6 0 5 . . 8 0 3 5 6 3 4 . . 5 4 3 5 6 5 8 . . 1 3 3 5 6 9 7. . 4 0 3 6 6 1 3 . . 7 6 3 6 5 2 9. . 7 3 r 3 6 5 6 8 . . 5 7 35 5 8 8 . . 1 4 32 Nonbank financial institutions 38.9 37.9 37.0 36.7 36.9 38.1 41.7r 39.5 39.7 40.0 39.5 39.7 33 Agricultural 34.1 34.7 35.2 35.5 34.9 34.1 33.9 33.2 32.6 32.8 33.1 33.4 34 State and political subdivisions 31.3 30.7 30.4 30.1 29.6 29.1 28.7 28.4 28.2 28.1 27.8 27.6 35 Foreign banks 6.1 6.3 6.4 6.9 6.9 7.3 7.9r 7.1 6.7 6.4 6.5 7.2 36 Foreign official institutions.. 2.5 2.3 2.2 2.3 2.4 2.5 2.4 2.3 2.2 2.2 2.1 2.1 37 Lease-financing receivables . 32.9 32.1 31.6 31.5 31.6 31.5 31.6 31.8 31.7 31.7 31.5 31.4 38 All other loans 42.7 41.3 42.7 42.9 41.9 42.9 44.4r 45.1 45.7 45.0 43.6 41.8 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 Financial Statistics • August 1992 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Billions of dollars, monthly averages 1991 1992 SSoouurrccee ooff ffuunnddss June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.r Mar. Apr/ May Seasonally adjusted 1 Total nondeposit funds 250.4 248.5 246.9 249.3 264.2r 267. r 280.4 228844..99rr 289.3 289.6 292.0 292.3 2 Net balances due to related foreign offices3 17.0 18.1 18.2 20.3 31.0 33.1 39.2 43.8r 42.7 45.4r 49.9 55.2 3 Borrowings from other than commercial banks in United States4 233.4 230.4 228.7 229.0 233.3r 234.0r 241.2 241.r 246.6 244.2 242.0 237.1 4 Domestically chartered banks 164.4 160.7 156.5 155.2 154.2r 150.8r 153.3 155.9 158.9 154.8 151.6 148.0 5 Foreign-related banks 69.0 69.7 72.1 73.8 79.1 83.2 87.9 85.3r 87.6 89.4 90.4 89.1 Not seasonally adjusted 6 Total nondeposit funds 251.4 244.7 243.6 246.7 265.5r 271.4r 278.6 280.8r 289.9 293.5r 289.2 298.1 7 Net balances due to related foreign offices3 16.5 14.8 16.4 19.5 30.6 34.0 42.7 44.4 42.9 45.8r 48.5 57.6 8 Domestically chartered banks -3.7 -7.3 -7.2 -8.8 -7.2 -4.4 -3.8 -4.9 -1.0 -1.2 -5.4 -4.2 9 Foreign-related banks 20.2 22.1 23.6 28.3 37.7 38.5 46.5 49.3 43.9 47.0 53.9 61.8 10 Borrowings from other than commercial banks in United States 234.9 229.8 227.2 227.2 234^ 237.4r 235.9 236.4r 247.0 247.7 240.7 240.5 11 Domestically chartered banks 164.6 158.9 154.8 154.1 155^ 155.T 152.0 151.6 159.4 157.9 149.7 150.7 12 Federal funds and security RP borrowings 161.7 155.7 151.1 150.6 151.8r 151.9*^ 148.8 148.1 155.9 154.6 146.3 146.8 13 Other6 2.8 3.2 3.7 3.5 3.2 3.2 3.1 3.4 3.5 3.3 3.4 3.9 14 Foreign-related banks 70.4 70.9 72.4 73.1 79.9 82.3 83.9 84.8r 87.6 89.8 91.0 89.8 MEMO Gross large time deposits 15 Seasonally adjusted 441.5 437.5 438.2 436.0 429.5 426.1 423.9 416.0 413.7 406.9 399.8 396.6 16 Not seasonally adjusted 442.8 437.1 440.0 437.5 429.7 425.8 422.6 413.6 412.6 407.3 398.8 397.9 U.S. Treasury demand balances at commercial banks8 17 Seasonally adjusted 24.1 22.8 25.3 23.8 29.2 34.2 26.4 27.8 19.5 21.8 19.9 17.0 18 Not seasonally adjusted 23.6 20.7 17.2 26.9 28.7 28.5 25.4 33.1 25.2 20.1 17.7 21.0 1. Commercial banks are nationally and state-chartered banks in the fifty states 4. Borrowings through any instrument, such as a promissory note or due bill, and the District of Columbia, agencies and branches of foreign banks, New York given for the purpose of borrowing money for the banking business. This includes investment companies majority owned by foreign banks, and Edge Act corpora- borrowings from Federal Reserve Banks and from foreign banks, term federal tions owned by domestically chartered and foreign banks. funds, loan RPs, and sales of participations in pooled loans. Data in this table also appear in the Board's G.10 (411) release. For ordering 5. Figures are based on averages of daily data reported weekly by approxiaddress, see inside front cover. mately 120 large banks and quarterly or annual data reported by other banks. Data have been revised to reflect new seasonal adjustment factors and bench- 6. Figures are partly averages of daily data and partly averages of Wednesday marking to Call reports. Historical data may be obtained from the Banking and data. Money Market Statistics Section, Division of Monetary Affairs, Board of Gover- 7. Time deposits in denominations of $100,000 or more. Estimated averages of nors of the Federal Reserve System, Washington, DC 20551. daily data. 2. Includes federal funds, repurchase agreements (RPs), and other borrowing 8. U.S. Treasury demand deposits and Treasury tax-and-loan notes at comfrom nonbanks and net balances due to related foreign offices. mercial banks. Averages of daily data. 3. Reflects net positions of U.S. chartered banks, Edge act corporations, and U.S. branches and agencies of foreign banks with related foreign offices plus net positions with own International Banking Facilities (IBFs). 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 1992r AAccccoouunntt July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May ALL COMMERCIAL BANKING INSTITUTIONS2 1 Total assets 3,439.8 3,402.5 3,431.6 3,473.1 3,514.4 3,545.4 3,502.2 3,501.6 3,499.0 3,513.9 3,519.4 ? Loans and securities 2,944.5 2,933.3 2,952.0 2,982.5 3,005.1 3,026.7 3,016.5 3,016.9 3,020.4 3,023.0 3,016.9 3 Investment securities 649.7 654.2 663.4 687.3 696.7 705.5 706.1 712.1 720.7 724.7 731.9 4 U.S. government securities 487.4 491.9 500.0 522.6 530.7 538.0 541.1 548.6 558.6 563.7 572.2 5 Other 162.3 162.3 163.4 164.7 166.0 167.4 164.9 163.4 162.1 161.0 159.7 6 Trading account assets 33.4 31.3 32.3 35.3 36.4 33.8 38.0 37.7 39.2 38.6 37.2 7 Total loans 2,261.5 2,247.7 2,256.2 2,259.9 2,271.9 2,287.5 2,272.5 2,267.1 2,260.5 2,259.8 2,247.8 8 Interbank loans 168.9 161.1 163.3 169.5 173.6 175.1 177.6 175.5 170.1 166.5 168.6 9 Loans excluding interbank 2,092.6 2,086.7 2,093.0 2,090.4 2,098.3 2,112.4 2,094.8 2,091.6 2,090.5 2,093.2 2,079.2 10 Commercial and industrial 622.2 616.7 619.0 619.1 621.6 621.1 611.2 610.5 610.7 606.1 602.3 11 Real estate 867.2 868.4 867.9 872.3 872.5 872.8 872.9 872.1 873.2 880.4 879.5 1? 369.4 369.4 368.8 365.3 363.5 369.9 366.8 362.4 359.6 359.6 358.4 13 All other 233.8 232.1 237.3 233.7 240.7 248.5 244.0 246.6 247.0 247.1 239.0 14 Total cash assets 212.7 197.3 203.7 206.0 224.2 229.2 201.5 204.8 203.7 208.3 222.5 IS Reserves with Federal Reserve Banks .. 24.3 22.6 26.1 25.9 24.7 29.2 23.7 27.4 28.5 23.7 28.6 16 Cash in vault 29.7 31.0 30.2 30.7 29.6 30.8 31.1 30.7 29.8 30.8 32.2 17 Cash items in process of collection ... 88.0 71.9 75.5 75.5 90.6 87.7 72.9 73.5 71.4 78.4 84.1 18 Demand balances at U.S. depository institutions 27.3 27.6 27.2 29.2 32.7 33.3 28.4 2288..99 2288..33 2288..77 3311..88 19 Other cash assets 43.4 44.2 44.7 44.7 46.5 48.3 45.4 44.2 45.6 46.7 45.9 20 Other assets 282.5 271.9 275.9 284.5 285.1 289.5 284.1 279.9 274.8 282.7 280.0 21 Total liabilities 3,103.7 3,056.6 3,083.2 3,131.4 3,172.8 3,199.8 3,147.4 3,147.1 3,143.9 3,164.2 n.a. ?? Total deposits 2,349.9 2,326.7 2,325.2 2,345.5 2,388.6 2,392.6 2,339.8 2,347.6 2,354.9 2,359.8 2,371.1 23 Transaction accounts 639.8 612.5 614.4 629.7 672.2 685.4 646.2 654.8 665.9 676.2 687.1 24 Savings deposits (excluding 623.1 627.5 631.4 643.7 665511..88 657.7 666699..44 668811..99 669922..66 669944..22 770022..55 25 1,087.0 1,086.7 1,079.4 1,072.1 1,064.6 1,049.5 1,024.2 1,010.9 996.4 989.4 981.6 76 489.4 467.5 484.8 504.5 491.1 504.8 508.4 505.5 495.9 501.0 492.6 77 264.4 262.4 273.2 281.4 293.1 302.4 299.5 294.3 293.4 303.1 303.2 28 Residual (assets less liabilities)3 336.0 345.9 348.4 341.7 341.6 345.7 354.6 354.3 354.8 350.0 352.4 DOMESTICALLY CHARTERED COMMERCIAL BANKS4 29 Total assets 3,020.2 2,987.3 3,002.4 3,027.7 3,055.2 3,072.0 3,032.2 3,031.5 3,034.7 3,048.6 3,051.6 30 Loans and securities 2,663.8 2,651.9 2,660.4 2,677.0 2,691.6 2,698.6 2,692.7 2,692.8 2,702.4 2,699.9 2,695.1 31 Investment securities 610.8 613.7 621.6 640.0 646.5 652.2 654.6 662.0 670.2 674.7 678.7 3? U.S. government securities 466.7 470.3 477.3 494.7 500.7 506.4 511.0 519.9 529.5 534.5 540.0 33 Other 144.1 143.4 144.3 145.3 145.8 145.8 143.6 142.2 140.7 140.2 138.7 34 Trading account assets 33.4 31.3 32.3 35.3 36.4 33.8 38.0 37.7 39.2 38.6 37.2 35 Total loans 2,019.6 2,006.8 2,006.5 2,001.8 2,008.7 2,012.6 2,000.1 1,993.0 1,993.0 1,986.7 1,979.2 36 Interbank loans 146.2 141.3 142.3 144.1 150.1 149.4 154.1 151.0 149.0 138.1 142.9 37 Loans excluding interbank 1,873.5 1,865.5 1,864.2 1,857.6 1,858.6 1,863.2 1,845.9 1,842.0 1,844.0 1,848.5 1,836.3 38 Commercial and industrial 482.4 475.8 473.0 471.5 469.1 464.5 455.9 455.6 455.9 454.2 450.3 39 Real estate 814.8 815.6 814.9 818.6 818.8 819.0 818.6 817.7 818.8 826.4 825.4 40 Revolving home equity 66.6 67.3 68.1 69.2 69.4 70.0 70.3 69.9 69.8 70.5 70.9 41 Other real estate 748.2 748.3 746.8 749.4 749.4 749.0 748.3 747.8 749.0 755.9 754.5 4? 369.4 369.4 368.8 365.3 363.5 369.9 366.8 362.4 359.6 359.6 358.4 43 All other 206.9 204.7 207.6 202.2 207.1 209.8 204.6 206.3 209.8 208.3 202.3 44 187.7 171.5 176.4 179.0 197.5 201.7 175.9 179.7 177.7 182.1 194.3 45 Reserves with Federal Reserve Banks. 23.9 22.1 24.9 25.1 24.0 28.5 23.3 26.8 28.0 23.0 26.9 46 Cash in vault 29.7 31.0 30.1 30.7 29.6 30.7 31.1 30.7 29.8 30.8 32.2 47 Cash items in process of collection ... 86.3 70.3 74.0 73.7 88.4 85.6 71.1 71.8 69.0 75.9 81.8 48 Demand balances at U.S. depository institutions 25.5 25.7 25.1 27.3 30.7 31.1 26.5 2277..11 2266..99 2277..22 3300..22 49 Other cash assets 22.4 22.4 22.3 22.3 24.8 25.8 24.0 23.3 24.1 25.2 23.3 50 Other assets 168.7 163.9 165.6 171.6 166.2 171.7 163.6 159.0 154.6 166.6 162.2 51 Total liabilities 2,792.5 2,755.0 2,769.4 2,795.4 2,821.8 2,836.5 2,793.9 2,792.3 2,794.8 2,807.6 n.a. 5? Deposits 2,313.5 2,289.5 2,287.1 2,301.9 2,342.0 2,344.0 2,293.0 2,302.7 2,309.1 2,314.4 2,322.7 53 Transaction accounts 630.4 603.2 605.4 620.3 662.0 674.9 636.1 645.3 655.8 666.5 677.4 54 Savings deposits (excluding checkable) 619.4 623.8 627.6 639.9 647.9 653.7 666655..33 667777..99 668888..55 669900..11 669988..33 55 Time deposits 1,063.7 1,062.6 1,054.1 1,041.7 1,032.0 1,015.4 991.6 979.6 964.8 957.7 947.0 56 Borrowings 353.2 340.1 356.1 362.3 346.5 356.4 365.2 359.2 354.3 367.2 360.2 57 Other liabilities 125.8 125.4 126.2 131.2 133.3 136.1 135.5 130.3 131.3 125.7 125.0 58 Residual (assets less liabilities)3 227.7 232.4 233.0 232.3 233.4 235.5 238.5 239.2 240.0 241.3 243.7 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, DC 20551. Data in this and quarter-end condition reports. 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 • August 1992 1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS1 Millions of dollars, Wednesday figures 1992 AAccccoouunntt Apr. lr Apr. 8r Apr. 15r Apr. 22r Apr. 29r May 6 May 13 May 20 May 27 ASSETS 1 Cash and balances due from depository institutions 135,126 99,064 131,205 100,620 108,050 101,925 102,449 99,506 115,389 2 U.S. Treasury and government securities 241,237 241,934 242,951 239,561 237,301 243,606 244,423 241,152 239,476 3 Trading account 20,792 22,556 23,912 21,861 22,700 23,919 22,961 22,420 21,312 4 Investment account 220,445 219,379 219,039 217,701 214,601 219,687 221,462 218,731 218,163 5 Mortgage-backed securities2 81,745 82,279 81,516 81,392 80,881 81,491 81,086 80,006 80,719 All others, by maturity 6 One year or less 26,987 27,473 28,464 26,893 25,773 25,494 25,750 24,529 24,462 7 One year through five years 63,326 61,712 61,547 62,529 61,987 63,352 65,397 65,333 64,876 8 More than five years 48,387 47,914 47,513 46,887 45,960 49,351 49,229 48,864 48,106 9 Other securities 54,582 54,7% 55,007 55,004 54,507 54,390 54,147 53,870 53,349 10 Trading account 1,434 1,104 1,153 1,513 1,670 1,703 1,590 1,560 1,367 11 Investment account 53,148 53,692 53,854 53,491 52,837 52,687 52,557 52,309 51,982 12 State and political subdivisions, by maturity 21,897 21,898 21,867 21,822 21,855 21,707 21,685 21,701 21,713 N One year or less 3,298 3,315 3,331 3,284 3,308 3,252 3,252 3,256 3,247 14 More than one year 18,599 18,583 18,536 18,539 18,547 18,455 18,433 18,445 18,465 IS Other bonds, corporate stocks, and securities 31,251 31,794 31,987 31,669 30,982 30,980 30,872 30,608 30,269 16 Other trading account assets 11,643 12,908 12,989 12,759 11,679 12,476 12,232 12,367 11,478 17 Federal funds sold3 96,426 %,068 117,449 98,444 92,7% 88,400 84,231 86,147 87,633 18 To commercial banks in the United States 65,371 65,612 75,698 58,977 58,423 57,411 56,066 56,874 60,379 19 To nonbank brokers and dealers 25,684 25,873 35,961 35,087 29,144 26,817 24,217 25,688 23,386 7.0 To others4 5,370 4,583 5,790 4,381 5,228 4,172 3,948 3,586 3,869 71 Other loans and leases, gross 1,008,265 998,075 1,003,512 9%,207 999,109 997,536 997,074 992,490 990,964 22 Commercial and industrial 290,797 288,365 289,283 287,500 287,411 288,422 286,756 285,186 284,044 23 Bankers acceptances and commercial paper 1,376 1,399 1,487 1,405 1,438 1,776 1,699 1,625 1,635 74 All other 289,421 286,%5 287,7% 286,095 285,973 286,645 285,058 283,561 282,409 25 U.S. addressees 288,135 285,689 286,474 284,723 284,552 285,142 283,798 282,209 281,045 26 Non-U.S. addressees 1,286 1,276 1,322 1,372 1,420 1,503 1,260 1,352 1,364 77 Real estate loans 402,061 402,426 402,114 400,817 402,694 403,835 404,680 402,603 400,669 28 Revolving, home equity 40,875 40,851 41,005 41,112 41,270 41,475 41,526 41,504 41,545 29 All other 361,186 361,575 361,108 359,705 361,424 362,360 363,154 361,099 359,124 30 To individuals for personal expenditures 181,121 180,325 180,299 180,874 181,269 178,510 178,493 178,290 178,389 31 To financial institutions 45,150 43,627 42,912 42,388 43,225 43,140 42,085 41,700 42,400 32 Commercial banks in the United States 19,439 18,921 18,666 18,8% 18,902 18,482 18,295 18,061 19,046 33 Banks in foreign countries 2,065 1,925 1,841 1,770 2,167 1,951 1,720 2,036 1,999 34 Nonbank financial institutions 23,646 22,781 22,405 21,722 22,156 22,707 22,070 21,602 21,355 35 For purchasing and carrying securities 15,888 13,114 17,393 14,021 14,143 14,111 14,642 14,473 14,035 36 To finance agricultural production 5,797 5,811 5,831 5,856 5,878 5,833 5,874 5,866 5,907 37 To states and political subdivisions 17,040 16,%1 16,906 16,811 16,822 16,718 16,676 16,638 16,971 38 To foreign governments and official institutions 912 928 886 857 873 882 1,131 855 %7 39 All other loans5 23,890 20,949 22,369 21,588 21,371 20,725 21,351 21,454 22,084 40 Lease-financing receivables 25,610 25,570 25,518 25,495 25,423 25,359 25,387 25,425 25,497 41 LESS: Unearned income 2,971 2,960 2,%7 2,956 2,%1 2,838 2,840 2,830 2,819 42 Loan and lease reserve6 37,498 37,589 37,827 37,614 37,654 38,382 38,425 38,418 38,384 43 Other loans and leases, net 967,795 957,526 962,718 955,637 958,494 956,317 955,809 951,242 949,761 44 Other assets 156,257 156,516 157,036 153,089 155,669 158,623 160,338 155,095 152,615 45 Total assets 1,663,066 1,618,811 1,679,356 1,615,115 1,618,4% 1,615,737 1,613,628 1,599,378 1,609,701 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 Account Apr. lr Apr. 8r Apr. 15r Apr. 22r Apr. 2? May 6 May 13 May 20 May 27 LIABILITIES 46 Deposits 1,164,432 1,134,856 1,180,465 1,116,109 1,116,837 1,122,110 1,117,274 1,109,643 1,117,137 47 Demand deposits 276,054 240,819 286,441 237,430 244,259 241,047 239,049 238,063 247,897 48 Individuals, partnerships, and corporations 216,902 195,780 216,705 189,193 194,141 195,536 194,933 191,461 194,837 49 Other holders 59,152 45,040 69,736 48,237 50,118 45,512 44,116 46,602 53,061 50 States and political subdivisions 8,602 7,480 8,305 8,656 8,149 8,440 7,453 7,983 8,098 51 U.S. government 3,857 1,846 14,514 3,624 3,429 1,467 1,201 1,743 1,410 52 Depository institutions in the United States ... 28,538 20,682 29,049 20,448 21,618 21,162 20,211 21,571 25,315 53 Banks in foreign countries 5,486 4,850 5,553 4,885 5,114 4,904 4,851 4,944 5,817 54 Foreign governments and official institutions .. 747 574 703 629 600 484 890 568 571 55 Certified and officers' checks 11,921 9,607 11,612 9,996 11,208 9,055 9,511 9,793 11,851 56 Transaction balances other than demand deposits3 . 106,9% 107,817 111,621 105,859 101,435 104,916 102,365 102,006 101,774 57 Nontransaction balances 781,382 786,220 782,403 772,820 771,142 776,146 775,859 769,573 767,466 58 Individuals, partnerships, and corporations 751,218 755,522 751,184 741,588 739,968 744,233 743,795 737,562 735,978 59 Other holders 30,164 30,698 31,219 31,233 31,174 31,914 32,064 32,011 31,489 60 States and political subdivisions 25,027 25,265 25,048 25,103 25,157 25,857 25,971 25,993 25,506 61 U.S. government 1,985 2,144 2,171 2,191 2,131 2,201 2,214 2,220 2,218 62 Depository institutions in the United States ... 2,873 3,015 3,728 3,663 3,614 3,584 3,614 3,528 3,491 63 Foreign governments, official institutions, and banks . 279 275 273 276 272 271 265 271 274 64 Liabilities for borrowed money6 274,975 259,655 275,923 277,399 281,586 268,750 269,472 264,801 272,415 65 Borrowings from Federal Reserve Banks 551 0 0 0 0 0 650 0 0 66 Treasury tax and loan notes 4,543 2,895 4,105 24,417 28,067 11,175 13,032 11,013 11,932 67 Other liabilities for borrowed money 269,881 256,759 271,817 252,982 253,519 257,575 255,790 253,787 260,482 68 Other liabilities (including subordinated notes and debentures) 102,122 102,236 101,179 98,707 97,888 102,175 103,509 101,906 97,191 69 Total liabilities 1,541,530 1,496,747 1,557,566 1,492,216 1,496,311 1,493,035 1,490,255 1,476,350 1,486,743 70 Residual (total assets less total liabilities)8 121,537 122,065 121,790 122,899 122,185 122,702 123,373 123,029 122,958 MEMO , 71 Total loans and leases, gross, adjusted, plus securities' 1,327,343 1,319,248 1,337,545 1,324,102 1,318,067 1,320,515 1,317,746 1,311,090 1,303,475 72 Time deposits in amounts of $100,000 or more 151,112 153,583 152,274 150,519 150,454 151,809 150,608 149,507 148,827 73 Loans sold outright to affiliates10 1,205 1,197 1,204 1,191 1,209 1,195 1,184 1,183 1,180 74 Commercial and industrial 676 683 683 684 691 682 673 675 675 75 Other .,... 529 514 522 508 519 514 512 509 505 76 Foreign branch credit extended to U.S. residents11... 22,911 22,645 22,875 22,872 22,912 22,883 22,905 23,026 23,319 77 Net due to related institutions abroad -3,365 -6,622 -7,087 -4,938 -6,720 -6,807 -4,947 -2,554 -4,767 1. Components may not sum to totals because of rounding. 10. Affiliates include a bank's own foreign branches, nonconsolidated nonbank 2. Includes certificates of participation, issued or guaranteed by agencies of the affiliates of the bank, the bank's holding company (if not a bank), and noncon- U.S. government, in pools of residential mortgages. solidated nonbank subsidiaries of the holding company. 3. Includes securities purchased under agreements to resell. 11. Credit extended by foreign branches of domestically chartered weekly 4. Includes allocated transfer risk reserve. reporting banks to nonbank U.S. residents. Consists mainly of commercial and 5. Includes negotiable order of withdrawal accounts (NOWs), automatic trans- industrial loans, but includes an unknown amount of credit extended to other than fer service (ATS), and telephone and preauthorized transfers of savings deposits. nonfinancial businesses. 6. Includes borrowings only from other than directly related institutions. NOTE. Data that formerly appeared in table 1.28, Assets and Liabilities of Large 7. Includes federal funds purchased and securities sold under agreements to Weekly Reporting Commercial Banks in New York City, can be obtained from the repurchase. Board's H.4.2 (504) weekly statistical release. For ordering address, see inside 8. This balancing item is not intended as a measure of equity capital for use in front cover. capital-adequacy analysis. 9. Excludes loans to and federal funds transactions with commercial banks in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Nonfinancial Statistics • August 1992 1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS Assets and Liabilities1 Millions of dollars, Wednesday figures 1992 AAccccoouunntt Apr. lr Apr. 8r Apr. 15r Apr. 22r Apr. 29 May 6 May 13 May 20 May 27 1 Cash and balances due from depository institutions 17,220 16,557 18,322 16,167 16,998 16,537 16,451 17,012 18,376 2 U.S. Treasury and government agency securities 2200,,223366 2200,,775533 20,672 19,981 20,027r 21,544 21,639 21,118 22,097 3 Other securities 8,609 8,652 8,576 8,619 8,381r 8,330 8,506 8,530 8,466 4 Federal funds sold1 12,271 11,616 13,137 16,622 14,124 12,726 12,277 12,375 12,302 5 To commercial banks in the United States ... 5,500 4,288 4,705 6,026 5,959 5,610 5,101 4,847 5,125 6 Toothers2 6,770 7,329 8,432 10,596 8,165 7,115 7,176 7,528 7,177 7 Other loans and leases, gross 162,997 161,577 162,659 161,700 162,355r 162,887 162,181 161,840 161,366 8 Commercial and industrial 97,868 97,811 97,386 96,788 95,594r 95,657 95,546 95,797 95,642 9 Bankers acceptances and commercial paper 2,592 2,516 2,531 2,401 2,335 2,549 2,511 2,403 2,371 10 All other 95,276 95,295 94,855 94,388 93,259r 93,108 93,035 93,395 93,271 11 U.S. addressees 92,371 92,367 91,934 91,431 90,386r 90,268 90,185 90,572 90,356 1? Non-U.S. addressees 2,905 2,928 2,922 2,957 2,873 2,840 2,850 2,823 2,916 13 Loans secured by real estate 36,235 36,101 36,117 36,264 36,613r 36,716 36,672 36,731 36,703 14 To financial institutions 21,140 20,695 21,132 21,071 21,918 22,054 22,128 22,004 21,813 15 Commercial banks in the United States.. 7,449 7,667 8,300 7,936 8,329 8,419 8,248 7,985 7,774 16 Banks in foreign countries 1,717 1,634 1,666 1,514 1,689 1,855 1,806 2,176 1,985 17 Nonbank financial institutions 11,974 11,393 11,166 11,621 11,900 11,780 12,075 11,844 12,054 18 For purchasing and carrying securities 5,385 4,361 5,369 5,165 5,726 5,938 5,429 4,891 4,793 19 To foreign governments and official institutions 335599 376 347 326 324 359 328 304 229977 70 All other 2,011 2,234 2,309 2,086 2,179 2,164 2,077 2,112 2,118 21 Other assets (claims on nonrelated parties) .. 27,317 27,593 27,824 27,812 28,113r 28,538 28,711 27,786 28,085 22 Total assets3 294,427 289,172 295,192 290,926 288,904r 290,822 291,170 290,566 290,434 2.3 Deposits or credit balances due to other than directly related institutions 100,737 97,578 96,445 96,459 95,633 94,564 95,630 96,797 96,770 24 Demand deposits 3,736 3,651 4,118 3,247 3,333 3,354 3,214 3,327 3,537 25 Individuals, partnerships, and corporations 2,935 2,766 2,963 2,533 2,618 2,638 2,588 2,607 2,678 ?6 Other 801 885 1,155 713 715 716 626 719 858 27 Nontransaction accounts 97,001 93,927 92,327 93,212 92,300 91,211 92,415 93,470 93,234 28 Individuals, partnerships, and corporations 69,510 67,108 66,033 67,249 6666,,220000"" 65,711 65,985 66,410 66,129 29 Other 27,491 26,819 26,294 25,963 26,100" 25,499 26,430 27,060 27,105 30 Borrowings from other than directly related institutions 105,146 104,521 110,449 106,380 94,295r 101,254 95,944 96,132 93,307 31 Federal funds purchased 51,167 51,652 57,181 45,753 43,892 46,494 42,883 46,937 47,611 32 From commercial banks in the United States 21,499 19,802 24,727 14,650 15,542 14,693 13,139 13,363 15,485 33 From others 29,668 31,850 32,454 31,103 28,350 31,800 29,743 33,573 32,125 34 Other liabilities for borrowed money 53,979 52,868 53,268 60,627 50,404r 54,761 53,061 49,196 45,696 35 To commercial banks in the United States 13,269 13,613 13,099 13,135 12,163r 11,495 10,835 10,847 10,889 36 To others 40,710 39,256 40,169 47,492 38,241r 43,266 42,226 38,348 34,807 37 Other liabilities to nonrelated parties 23,510 24,331 24,568 24,787 26,249" 26,754 27,055 26,960 26,360 38 Total liabilities6 294,427 289,172 295,192 290,926 288,904r 290,822 291,170 290,566 290,434 MEMO 39 Total loans (gross) and securities, adjusted .. 191,164 190,644 192,040 192,961 190,599r 191,457 191,253 191,031 191,331 40 Net due to related institutions abroad 19,257 20,319 19,729 23,276 33,822r 27,988 31,136 28,772 34,255 1. Includes securities purchased under agreements to resell. 5. Includes securities sold under agreements to repurchase. 2. Includes transactions with nonbank brokers and dealers in securities. 6. Includes net to related institutions abroad for U.S. branches and agencies of 3. Includes net due from related institutions abroad for U.S. branches and foreign banks having a net "due to" position. agencies of foreign banks having a net "due from" position. 7. Excludes loans to and federal funds transactions with commercial banks in 4. Includes other transaction deposits. the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A23 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING1 Millions of dollars, end of period 1991 1992 11998877 11998888 11998899 11999900 11999911 IItteemm DDeecc.. DDeecc.. DDeecc.. DDeecc.. DDeecc.. Nov. Dec. Jan. Feb. Mar. Apr. Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 358,997 458,464 525,831 561,142 530,300 534,%9 530,300 533,342 527,941 539,749 537,020 Financial companies2 Dealer-placed paper 2 Total 102,742 159,777 183,622 215,123 214,445 218,149 214,445 220,208 210,686 219,287 225,989 3 Bank-related (not seasonally adjusted)4 1,428 1,248 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Directly placed paper 4 Total 174,332 194,931 210,930 199,835 183,195 181,582 183,195 180,224 178,995 181,485 172,136 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 81,923 103,756 131,279 146,184 132,660 135,238 132,660 132,910 138,260 138,977 138,895 Bankers dollar acceptances (not seasonally adjusted)7 7 Total 70,565 66,631 62,972 54,771 43,770 43,947 43,770 43,112 41,375 39,309 39,335 Holder 1 9 8 0 Ac O B c i e w l p l n s t i b b n o g il u ls b g a h n t ks 1 9 1 0 , , , 4 4 9 6 7 4 4 9 3 9 8 1 , , , 0 0 0 2 8 6 2 6 4 9 8 , , 4 5 9 3 1 2 3 0 4 9 7 1 , , , 0 9 0 1 3 8 7 0 7 1 9 1 1 , , , 3 6 0 4 7 1 7 0 7 1 8 1 0 , , , 7 7 9 5 5 % 4 0 1 9 1 1 , , , 3 0 6 4 1 7 7 7 0 1 9 2 1 , , , 2 0 2 7 1 9 3 8 1 1 8 1 0 , , , 8 7 5 3 4 7 1 7 8 9 8 l, , , 3 6 2 4 4 % 0 4 r r 9 8 1 , , , 8 3 4 2 8 4 1 0 1 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 1,705 1,739 1,574 1,364 1,492 1,598 13 Others 58,658 56,052 52,473 44,836 31,014 31,491 31,014 30,247 29,423 28,177 27,915 Basis 14 Imports into United States. 16,483 14,984 15,651 13,0% 12,843 13,472 12,843 12,995 12,853 11,569 12,045 15 Exports from United States 15,227 14,410 13,683 12,703 10,351 10,486 10,351 9,740 9,252 9,403 9,168 16 All other 38,855 37,237 33,638 28,973 20,577 19,982 20,577 20,377 19,269 18,337 18,121 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 t a e ge Period Av r e a r t a e ge 1989—Jan. 1 10.50 1989 10.87 1990- 10.00 1991—July 8.50 Feb. 10 11.00 1990 10.01 May ... 10.00 8.50 24 11.50 1991 8.46 10.00 Sept 8.20 June 5 11.00 July ... 10.00 Oct 8.00 July 31 10.50 1989--Jan. . 10.50 Aug. .. 10.00 7.58 Feb. 10.93 Sept. .. 10.00 Dec 7.21 1990 Jan. 8 10.00 Mar. 11.50 Oct. ... 10.00 Apr. 11.50 10.00 1992—Jan 6.50 1991—Jan. 2 9.50 May . 11.50 Dec. .. 10.00 Feb 6.50 Feb. 4 9.00 June 11.07 Mar 6.50 May 1 8.50 July . 10.98 1991- 9.52 6.50 Sept. 13 8.00 Aug. 10.50 Feb. .. 9.05 6.50 Nov. 6 7.50 Sept. 10.50 Mar. .. 9.00 6.50 Dec. 23 6.50 Oct. . 10.50 9.00 Nov. 10.50 8.50 Dec. 10.50 8.50 1990 10.11 Feb. 10.00 Mar. 10.00 1. Data in this table also appear in the Board's H.15 (519) weekly and G.13 (415) monthly statistical releases. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Nonfinancial Statistics • August 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. 1992 1992, week ending IItteemm 11998899 11999900 11999911 Feb. Mar. Apr. May May 1 May 8 May 15 May 22 May 29 MONEY MARKET INSTRUMENTS 1 Federal funds1'2'3 9.21 8.10 5.69 4.06 3.98 3.73 3.82 3.65 3.77 3.84 3.89 3.80 2 Discount window borrowing '4 6.93 6.98 5.45 3.50 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 4.11 4.28 4.02 3.87 3.92 3.88 3.85 3.83 3.92 4 3-month 8.99 8.06 5.87 4.11 4.30 4.04 3.88 3.95 3.89 3.85 3.84 3.93 5 6-month 8.80 7.95 5.85 4.13 4.38 4.13 3.97 4.04 3.99 3.94 3.92 4.03 Finance paper, directly placed3'5'7 6 1-month 8.99 8.00 5.73 4.01 4.18 3.89 3.76 3.81 3.77 3.72 3.73 3.82 7 3-month 8.72 7.87 5.71 4.02 4.20 3.91 3.77 3.85 3.79 3.72 3.73 3.83 8 6-month 8.16 7.53 5.60 3.% 4.15 3.89 3.77 3.81 3.79 3.76 3.73 3.80 Bankers acceptances3,5,8 9 3-month 8.87 7.93 5.70 4.00 4.19 3.92 3.76 3.82 3.77 3.71 3.74 3.84 10 6-month 8.67 7.80 5.67 4.02 4.29 3.99 3.85 3.92 3.87 3.78 3.81 3.93 Certificates <rf deposit, secondary marker9 11 1-month 9.11 8.15 5.82 4.05 4.23 3.97 3.79 3.87 3.80 3.72 3.76 3.86 12 3-month 9.09 8.15 5.83 4.07 4.25 4.00 3.82 3.92 3.85 3.77 3.78 3.89 13 6-month 9.08 8.17 5.91 4.13 4.42 4.13 3.% 4.07 4.00 3.90 3.90 4.03 14 Eurodollar deposits, 3-month3,10 9.16 8.16 5.86 4.05 4.26 4.05 3.84 3.95 3.85 3.78 3.81 3.91 U.S. Treasury bills Secondary market,5 15 3-month 8.11 7.50 5.38 3.84 4.04 3.75 3.63 3.69 3.63 3.60 3.61 3.71 16 6-month 8.03 7.46 5.44 3.93 4.18 3.87 3.75 3.83 3.77 3.70 3.71 3.84 17 1-year 7.92 7.35 5.52 4.08 4.40 4.09 3.99 4.12 4.06 3.93 3.92 4.06 Auction average • • 18 3-month 8.12 7.51 5.42 3.84 4.05 3.81 3.66 3.71 3.65 3.64 3.61 3.75 19 6-month 8.04 7.47 5.49 3.94 4.19 3.93 3.78 3.85 3.78 3.74 3.71 3.90 20 1-year 7.91 7.36 5.54 4.01 4.37 4.34 4.20 n.a. 4.20 n.a. n.a. n.a. U.S. TREASURY NOTES AND BONDS Constant maturities12 21 1-year 8.53 7.89 5.86 4.29 4.63 4.30 4.19 4.34 4.25 4.12 4.12 4.27 22 2-year 8.57 8.16 6.49 5.21 5.69 5.34 5.23 5.40 5.30 5.16 5.17 5.26 23 3-year 8.55 8.26 6.82 5.72 6.18 5.93 5.81 6.02 5.92 5.75 5.73 5.83 24 5-year 8.50 8.37 7.37 6.58 6.95 6.78 6.69 6.88 6.78 6.65 6.61 6.70 25 7-year 8.52 8.52 7.68 6.% 7.26 7.15 7.06 7.24 7.16 7.01 6.98 7.07 26 10-year 8.49 8.55 7.86 7.34 7.54 7.48 7.39 7.59 7.50 7.34 7.29 7.40 27 30-year 8.45 8.61 8.14 7.85 7.97 7.% 7.89 8.06 7.98 7.86 7.81 7.89 Composite13 28 Over 10 years (long-term) 8.58 8.74 8.16 7.78 7.93 7.88 7.80 7.97 7.90 7.76 7.72 7.81 STATE AND LOCAL NOTES AND BONDS Moody's series14 29 Aaa 7.00 6.% 6.56 n.a. n.a. 6.36 6.25 6.37 6.31 6.27 6.22 6.21 30 Baa 7.40 7.29 6.99 n.a. n.a. 6.85 6.67 6.85 6.78 6.69 6.62 6.59 31 Bond Buyer series15 7.23 7.27 6.92 6.74 6.76 6.67 6.57 6.69 6.64 6.54 6.51 6.58 CORPORATE BONDS 32 Seasoned issues, all industries16 9.66 9.77 9.23 8.75 8.81 8.77 8.71 8.82 8.78 8.70 8.66 8.69 Rating group 33 Aaa 9.26 9.32 8.77 8.29 8.35 8.33 8.28 8.37 8.35 8.27 8.23 8.24 34 Aa 9.46 9.56 9.05 8.67 8.73 8.69 8.63 8.74 8.70 8.61 8.57 8.61 35 A 9.74 9.82 9.30 8.83 8.89 8.87 8.81 8.92 8.88 8.80 8.76 8.80 36 Baa 10.18 10.36 9.80 9.23 9.25 9.21 9.13 9.23 9.20 9.12 9.07 9.11 37 A-rated, recently offered utility bonds17 9.79 10.01 9.32 8.79 8.91 8.82 8.70 8.86 8.73 8.64 8.68 8.65 MEMO: Dividend-price ratio18 38 Preferred stocks 9.05 8.96 8.17 7.54 7.64 7.75 7.61 7.68 7.64 7.59 7.57 7.62 39 Common stocks 3.45 3.61 3.25 2.94 3.01 3.02 2.99 3.00 2.98 2.98 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 New York 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 ten years, including one low-yielding "flower" bond. 3. Annualized using a 360-day year or bank interest. 14. General obligations based on Thursday figures; Moody's Investors Service. 4. Rate for the Federal Reserve Bank of New York. 15. General obligations only, with twenty years to maturity, issued by twenty 5. Quoted on a discount basis. state and local governmental units of mixed quality. Based on figures for 6. An average of offering rates on commercial paper placed by several leading Thursday. dealers for firms whose bond rating is AA or the equivalent. 16. Daily figures from Moody's Investors Service. Based on yields to maturity 7. An average of offering rates on paper directly placed by finance companies. on selected long-term bonds. 8. Representative closing yields for acceptances of the highest rated money 17. Compilation of the Federal Reserve. This series is an estimate of the yield center banks. on recently offered, A-rated utility bonds with a thirty-year maturity and five 9. An average of dealer offering rates on nationally traded certificates of years of call protection. Weekly data are based on Friday quotations. deposit. 18. Standard and Poor's corporate series. Preferred stock ratio based on a 10. Bid rates for Eurodollar deposits at 11 a.m. London time. Data are for sample of ten issues: four public utilities, four industrials, one financial, and one indication purposes only. transportation. Common stock ratios on the 500 stocks in the price index. 11. Auction date for daily data; weekly and monthly averages computed on an NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases. issue-date basis. For ordering 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 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Prices and trading volume (averages of daily figures) Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 180.13 183.66 206.35 212.55 213.10 213.25 214.26 229.34 228.12 225.21 224.55 228.55 2 Industrial 228.04 226.06 258.16 266.21 265.68 264.89 266.01 286.62 286.09 282.36 281.60 285.17 3 Transportation 174.90 158.80 173.97 177.99 187.45 188.52 185.47 201.55 205.53 204.09 201.28 207.88 4 Utility 94.33 90.72 92.64 93.72 95.25 96.78 98.08 99.31 %.19 94.16 94.92 98.24 5 Finance 162.01 133.21 150.84 157.69 158.94 159.78 159.% 174.50 174.05 173.49 171.05 175.89 6 Standard & Poor's Corporation (1941-43 = 10)' 323.05 335.01 376.20 387.20 386.88 385.87 388.51 416.08 412.56 407.36 407.41 414.81 7 American Stock Exchange (Aug. 31, 1973 = 50p 356.67 338.32 360.32 369.55 376.82 382.38 373.08 409.08 413.74 404.09 388.06 392.63 Volume of trading (thousands of shares) 8 New York Stock Exchange 165,568 156,359 179,411 163,242 177,502 187,191 197,914 239,903 226,476 185,581 206,251 182,027 9 American Stock Exchange 13,124 13,155 12,486 13,378 13,764 14,487 17,475 20,444 18,126 15,654 14,0% 13,455 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers3 34,320 28,210 36,660 33,170 33,360 34,840 36,660 36,350 38,200 39,090 38,750 39,890 Free credit balances at brokers4 11 Margin accounts 7,040 8,050 8,290 6,950 6,%5 7,040 8,290 7,865 7,620 7,350 8,780 7,700 12 Cash accounts 18,505 19,285 19,255 17,595 17,100 17,780 19,255 19,990 20,370 19,305 16,400 18,695 Margin requirements (percent of market value and effective date)6 Mar. 11, 1968 June 8, 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 13 Margin stocks 70 80 65 55 65 50 14 Convertible bonds 50 60 50 50 50 50 15 Short sales 70 80 65 55 65 50 1. Effective July 1976, includes a new financial group, banks and insurance on securities other than options are the difference between the market value (100 companies. With this change the index includes 400 industrial stocks (formerly percent) and the maximum loan value of collateral as prescribed by the Board. 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40 Regulation T was adopted effective Oct. 15, 1934; Regulation U, effective May 1, financial. 1936; Regulation G, effective Mar. 11, 1968; and Regulation X, effective Nov. 1, 2. On July 5, 1983, the American Stock Exchange rebased its index, effectively 1971. cutting previous readings in half. On Jan. 1, 1977, the Board of Governors for the first time established in 3. Since July 1983, under the revised Regulation T, margin credit at broker- Regulation T the initial margin required for writing options on securities, setting dealers has included credit extended against stocks, convertible bonds, stocks it at 30 percent of the current market value of the stock underlying the option. On acquired through exercise of subscription rights, corporate bonds, and govern- Sept. 30, 1985, the Board changed the required initial margin, allowing it to be the ment securities. Separate reporting of data for margin stocks, convertible bonds, same as the option maintenance margin required by the appropriate exchange or and subscription issues was discontinued in April 1984. self-regulatory organization; such maintenance margin rules must be approved by 4. Free credit balances are amounts in accounts with no unfulfilled commit- the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC ments to brokers and are subject to withdrawal by customers on demand. approved new maintenance margin rules, permitting margins to be the price of the 5. New series since June 1984. option plus 15 percent of the market value of the stock underlying the option. 6. These requirements, stated in regulations adopted by the Board of Gover- Effective June 8, 1988, margins were set to be the price option plus 20 percent nors pursuant to the Securities Exchange Act of 1934, limit the amount of credit of the market value of the stock underlying the option (or 15 percent in the case that can be used to purchase and carry "margin securities" (as defined in the of stock-index options). regulations) when such credit is collateralized by securities. Margin requirements Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Nonfinancial Statistics • August 1992 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1991 1992 AAccccoouunntt 11998899 11999900 June July Aug. Sept. Oct.r Nov.r Dec.r Jan.r Feb/ Mar. SAIF-insured institutions 1 Assets 1,249,055 1,084,821 1,001,582 984,964 972,521 949,006r 937,790 934,542 920,009 909,138 906,264 882,138 2 Mortgages 733,729 633,385 596,022 586,302 578,294 566,419 560,766 557,148 550,947 545,658 541,657 528,544 3 Mortgage-backed securities 170,532 155,228 139,536 137,098 135,751 135,246 134,898 133,344 129,500 127,385 127,789 125,464 4 Contra-assets to mortgage assets' . 25,457 16,897 14,625 14,245 14,037 13,128 12,439 12,298 12,311 11,889 11,600 10,904 5 Commercial loans 32,150 24,125 20,645 20,301 20,390 18,166 18,148 17,509 17,532 16,840 16,064 15,337 6 Consumer loans 58,685 48,753 45,174 44,352 43,258 42,422 43,061 42,761 41,773 40,940 39,991 38,662 7 Contra-assets to nonmortgage loans . 3,592 1,939 1,745 1,676 1,545 1,398 1,770 1,153 1,254 1,124 1,128 1,003 8 Cash and investment securities 166,053 146,644 130,443 130,262 132,009 125,911 120,826 123,382 120,061 118,602 121,962 118,814 9 Other3 116,955 95,522 86,133 82,570 78,403 75,368r 73,905 73,849 73,760 72,726 71,529 67,224 10 Liabilities and net worth . 1,249,055 1,084,821 1,001,582 984,964 972,521 949,006r 937,790 934,542 920,009 909,138 906,264 882,138 11 Savings capital 945,656 835,496 792,923 775,434 763,751 749,376 741,360 737,555 731,937 721,099 717,026 702,726 12 Borrowed money 252,230 197,353 151,474 146,901 142,908 132,727 127,356 125,147 121,923 119,960 118,554 109,831 13 FHLBB 124,577 100,391 78,966 76,104 74,424 68,816 66,609 66,005 65,842 62,637 63,133 62,475 14 Other 127,653 96,962 72,508 70,797 68,484 63,911 60,747 59,142 56,081 57,323 55,421 47,356 15 Other 27,556 21,332 20,480 21,654 22,648r 19,080 20,381 21,690 17,553 18,973 21,363 18,289 16 Net worth 23,612 30,640 36,705 40,975 43,214 47,824 48,692 50,151 48,595 49,107 49,322 51,293 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. Starting in "held for sale," and specific reserves and other valuation allowances. the December 1991 issue, data for life insurance companies are shown in a special 2. Contra-assets are credit-balance accounts that must be subtracted from the table of quarterly data. 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 Dec. Jan. Feb. Mar. Apr. May U.S. budget2 1 Receipts, total 990,701 1,031,308 l,054,265r 103,662 104,091 62,056 72,917 138,430 62,244 2 On-budget 727,035 749,652 760,382r 80,172 79,937 38,290 46,353 103,405 36,867 3 Off-budget 263,666 281,656 293,883 23,490 24,154 23,766 26,564 35,025 25,377 4 Outlays, total 1,144,020 1,251,766 l,323,757r 106,199 119,742 111,230 123,629 123,821 109,179 5 On-budget 933,107 1,026,711 l,082,072r 95,500 97,188 88,006 100,700 102,795 86,489 6 Off-budget 210,911 225,065 241,685 10,698 22,553 23,224 22,929 21,026 22,690 7 Surplus or deficit (-), total -153,319 -220,469 -269,492 -2,537 -15,650 -49,174 -50,712 14,609 -46,935 8 On-budget -206,072 -277,059 -321,690 -15,328 -17,251 -49,716 -54,347 610 -49,622 9 Off-budget 52,753 56,590 52,198 12,792 1,601 542 3,635 13,999 2,687 Source of financing (total) 10 Borrowing from the public 141,806 220,101 276,802 22,825 11,449 20,938 50,138 6,292 33,840 11 Operating cash (decrease, or increase (-)) ... 3,425 818 -1,329 -24,258 925 30,975 -2,961 -21,262 20,977 12 Other 3 8,088 -451 -5,981 3,970 3,276 -2,739 3,535 361 -7,882 MEMO 13 Treasury operating balance (level, end of period) 40,973 40,155 41,484 48,782 47,857 16,882 19,843 41,105 20,128 14 Federal Reserve Banks 13,452 7,638 7,928 17,697 10,828 5,477 6,846 4,692 5,583 15 Tax and loan accounts 27,521 32,517 33,556 31,085 37,028 11,405 12,997 36,413 14,545 1. Components may not sum to totals because of rounding. in the International Monetary Fund (IMF); loans to the IMF; other cash and 2. In accordance with the Balanced Budget and Emergency Deficit Control Act monetary assets; accrued interest payable to the public; allocations of SDRs; of 1985, all former off-budget entries are now presented on-budget. Federal deposit funds; miscellaneous liability (including checks outstanding) and asset Financing Bank (FFB) activities are now shown as separate accounts under the accounts; seigniorage; increment on gold; net gain or loss for U.S. currency agencies that use the FFB to finance their programs. The act also moved two valuation adjustment; net gain or loss for IMF loan-valuation adjustment; and social security trust funds (federal old-age survivors insurance and federal profit on sale of gold. disability insurance trust fund) off-budget. The Postal Service is included as an SOURCES. Monthly Treasury Statement of Receipts and Outlays of the U.S. off-budget item in the Monthly Treasury Statement beginning in 1990. Government (MTS) and the Budget of the U.S. Government. 3. Includes special drawing rights (SDRs); reserve position on the U.S. quota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance All 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1 Millions of dollars Calendar year Fiscal Fiscal Source or type year year 1990 1991 1992 1990 1991 HI HI Mar. Apr. May RECEIPTS 1 All sources 1,031,308 L,054,265R 548,861 503,123 540,504 519,293R 72,917 138,430 62,244 2 Individual income taxes, net 466,884 467,827 243,087 230,745 232,389 233,983 19,503 67,993 12,012 4 3 5 6 P W R N r e o e i f t n s h u i w h d n i e e d t l n s h d t h i e al l d E lection Campaign Fund . 3 1 8 7 5 8 2 1 , , , 3 8 2 8 8 1 3 4 5 7 2 4 1 0 7 4 4 9 2 , , , 1 0 6 5 5 9 3 2 0 3 2 1 1 6 1 9 4 7 0 , , , 8 6 2 7 3 1 3 5 8 9 0 2 3 0 1 8 7 , , , 7 4 4 2 5 6 8 5 9 3 1 1 7 0 9 0 9 3 , , , 4 4 4 0 8 4 3 5 7 0 1 21 3 9 0 3 , , , 5 8 2 5 6 % 2 7 1 3 2 3 5 0 , , , 9 7 1 2 2 5 5 8 7 7 5 3 1 6 0 8 , , , 8 1 9 - 6 1 6 7 2 2 5 2 1 9 2 9 , , , 4 4 9 4 7 2 1 7 0 2 7 7 8 Co G R rp r e o o fu r s a s n t d r io e s n c e i i n p c ts o me taxes , 1 1 10 6 , , 0 5 1 1 7 0 1 1 1 5 3, , 5 5 9 1 9 3 58 8 , , 8 3 3 2 0 6 5 7 4 , , 6 0 0 4 3 4 5 7 8 , , 9 9 0 0 4 3 5 7 4 , , 9 0 5 1 6 6 13 1 , , 5 8 4 0 7 5 1 2 6 , , 4 6 9 9 5 3 3,6 9 0 1 6 5 9 Social insurance taxes and contributions, net 380,047 396,011 210,476 178,468 214,303 186,839 34,237 47,461 40,362 10 Employment taxes and contributions2 353,891 370,526 195,269 167,224 199,727 175,802 33,557 44,432 32,005 11 Self-employment taxes and contributions 21,795 25,457 19,017 2,638 22,150 3,306 1,853 12,588 1,472 12 Unemployment insurance 21,635 20,922 12,929 8,9% 12,2% 8,721 265 2,608 7,991 13 Other net receipts4 4,522 4,563 2,278 2,249 2,279 2,317 415 422 366 14 Excise taxes 35,345 42,430 18,153 17,535 20,703 24,690 4,077 3,871 3,440 15 Customs deposits 16,707 15,921 8,096 8,568 7,488 8,694 1,412 1,374 1,224 1 1 6 7 E M s i t s a c t e e ll a a n n d e o g u i s ft r t e a c x e e i s p t .. s 5 2 1 7 1 , , 3 5 1 0 6 0 2 1 2 1 , , 8 1 5 38 2 r 1 6 2 , , 4 1 4 0 2 6 1 5 6 , , 3 0 3 3 3 2 5 8 , , 6 9 3 9 1 1 1 5 3 , , 5 5 2 0 1 8 r 1, 8 0 7 6 9 6 2 1 , , 0 4 5 7 7 7 1, 8 6 5 6 3 2 OUTLAYS 18 All types 1,251,776 1,323,750 640,867 647,461 632,153 694,468 123,629 123,821 109,179 19 National defense 299,331 272,514 152,733 149,497 122,089 147,531 22,947 23,901 24,324 2 2 2 2 2 4 0 1 2 3 A G N I E n n g e a t e r n t e u i r r e c g n r r u a y a a l l l t t i u r o s e r c n e s i a o e l u n a r c c f e f e , a s i s r p a s n a d c 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 3 7 1 4 , , , , , 3 7 0 9 4 7 6 6 5 4 2 2 7 8 4 1 1 1 14 6 8 5 1 , , , , , 8 1 7 9 7 6 6 0 4 5 4 7 8 6 0 6 6 7 7 1 , , , , , 9 4 3 7 2 7 5 4 7 1 4 0 3 0 6 6 8 8 9 , , , , 8 9 9 0 9 7 4 3 8 7 8 3 3 9 1 7 7 8 7 , , , , 3 6 5 8 4 2 8 9 1 % 4 4 2 6 1 7 7 8 1 1 , , , , , 3 6 4 2 4 3 5 7 2 3 5 1 3 1 6 1 1 1 1 , , , , 4 5 3 5 6 1 9 9 2 7 1 2 7 7 5 2 1 1 1 , , , , 5 3 7 3 6 9 4 4 8 6 5 8 7 8 6 1 1 1 , , , 3 3 4 7 4 0 1 6 7 6 1 2 9 8 0 25 Commerce and housing credit 67,160 75,639 38,672 37,491 17,992 36,579 9,083 5,147 -3,251 26 Transportation 29,485 31,531 13,754 16,218 14,748 17,094 2,462 2,463 2,747 27 Community and regional development .. 8,498 7,432 3,987 3,939 3,552 3,784 743 762 619 28 Education, training, employment, and social services 38,497 41,479 19,537 18,988 21,234 21,104 3,642 4,321 3,198 29 Health 57,716 71,183 29,488 31,424 35,608 41,458 7,423 7,460 6,684 30 Social security and medicare 346,383 373,495 175,997 176,353 190,247 193,156 33,485 34,270 33,808 31 Income security 147,314 171,618 78,475 75,948 88,778 87,923 19,754 18,830 17,158 32 Veterans benefits and services 29,112 31,344 15,217 15,479 14,326 17,425 1,833 2,926 2,704 33 Administration of justice 10,004 12,295 4,868 5,265 6,187 6,586 1,130 1,517 1,188 34 General government 10,724 11,358 4,916 6,976 5,212 6,821 881 675 387 35 Net interest6 184,221 195,012 91,155 94,650 98,556 99,405 16,884 16,838 17,080 36 Undistributed offsetting receipts -36,615 -39,356 -17,688 -19,829 -18,702 -20,435 -3,238 -3,034 -2,787 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. Fjscal year 6. 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 for the outer continental shelf and U.S. the Budget have not been fully distributed across months. government contributions for employee retirement. 2. Old-age, disability, and hospital insurance, and railroad retirement accounts. SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of 3. Old-age, disability, and hospital insurance. Receipts and Outlays of the U.S. Government, and the U.S. Office of Manage- 4. Federal employee retirement contributions and civil service retirement and ment and Budget, Budget of the U.S. Government, Fiscal Year 1990. disability fund. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Financial Statistics • August 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 3,820.40 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 4 4 Held by agencies 722.70 775.00 795.80 828.30 866.80 895.10 919.60 968.70 1 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 1 7 Held by agencies .20 .20 .20 .10 .10 .10 .10 .10 • 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. SOURCES. Treasury Bulletin and Monthly Statement of the Public Debt of the 2. Consists of guaranteed debt of Treasury and other federal agencies, specified United States. participation certificates, notes to international lending organizations, and District of Columbia stadium bonds. 1.41 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership1 Billions of dollars, end of period 1991 1992 Type and holder 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 Nonmarketable 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 issues 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 series 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 holder 5 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 16 Federal Reserve Banks 238.4 228.4 259.8 288.4 255.1 264.7 288.4 17 Private investors 1,858.5 2,015.8 2,288.3 2,563.2 2,397.9 2,489.4 2,563.2 18 Commercial banks 184.9 164.9 171.5 222.0 195.6 216.9 222.0 19 Money market funds 11.8 14.9 45.4 80.0 55.2 64.5 80.0 20 Insurance companies 118.6 125.1 142.0 168.0 152.5 162.9 168.0 21 Other companies 87.1 93.4 108.9 150.8 130.8 142.0 150.8 n a. 22 State and local treasuries 471.6 487.5 490.4 490.0 489.3 491.4 490.0 Individuals 23 Savings bonds 109.6 117.7 126.2 138.1 133.2 135.4 138.1 24 Other securities 79.2 98.7 107.6 125.8 110.3 122.1 125.8 25 Foreign and international 362.2 392.9 421.7 457.7 439.8 443.4 457.7 26 Other miscellaneous investors 433.0 520.7 674.4 730.8 691.1 710.8 730.8 1. Components may not sum to totals because of rounding. 6. Consists of investments of foreign balances and international accounts in the 2. Includes (not shown separately) securities issued to the Rural Electrification United States. Administration, depository bonds, retirement plan bonds, and individual retire- 7. Includes savings and loan associations, nonprofit institutions, credit unions, ment bonds. mutual savings banks, corporate pension trust funds, dealers and brokers, certain 3. Nonmarketable series denominated in dollars, and series denominated in U.S. Treasury deposit accounts, and federally sponsored agencies. foreign currency held by foreigners. SOURCES. Data by type of security, U.S. Treasury Department, Monthly 4. Held almost entirely by U.S. Treasury and other federal agencies and trust Statement of the Public Debt of the United States; data by holder, the Treasury funds. Bulletin. 5. Data for Federal Reserve Banks and U.S. government agencies and trust funds are actual holdings; data for other groups are Treasury estimates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance All 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Millions of dollars, daily averages, par value 1992, week ending Item Feb. Mar. I Apr Apr. 1 Apr. 8 Apr. 15 Apr. 22 Apr. 29 May 6 May 13 May 20 IMMEDIATE TRANSACTIONS2 By type of security U.S. Treasury securities 1 Bills 36,927 36,555 40,313 38,144 46,265 43,263 33,788 38,531 39,496 47,244 41,575 Coupon securities, by maturity 2 Less than 3.5 years 50,004 42,685 45,264 38,399 41,172 49,269 44,808 46,448 48,922 57,920 53,667 3 3.5 to 7.5 years 32,906 31,442 32,994 30,807 34,638 38,199 28,083 32,738 26,767 36,169 37,369 4 7.5 to 15 years 17,537 13,835 13,123 11,920 12,516 12,545 11,177 15,425 18,174 21,297 19,127 5 15 years or more 14,718 13,122 11,899 12,100 10,870 12,866 10,358 13,096 13,723 17,424 14,827 Federal agency securities Debt, maturing in 6 Less than 3.5 years 5,702 4,585 4,518 4,833 3,918 4,275 4,965 4,921 4,165 3,603 4,100 7 3.5 to 7.5 years 615 618 712 567 833 762 753 572 498 730 497 8 7.5 years or more 596 667 600 458 605 890 604 367 416 668 596 Mortgage-backed securities 9 Pass-throughs 12,359 12,503 11,948r 10,290 15,268 13,138 10,189 10,071 9,241 14,183 16,281 10 All others 2,646 2,499 2,954 3,310 3,234 2,642 2,366 3,345 3,749 4,162 3,862 By type of counterparty Primary dealers and brokers 11 U.S. Treasury securities 95,816 87,201 81,072 90,527 95,526 80,795 90,524 93,228 111,426 102,876 Federal agency securities 12 Debt 1,463 1,239 1,199 1,322 1,202 1,261 1,192 1,174 912 1,122 1,245 13 Mortgage-backed 6,590 7,054 6,681r 5,815 7,735 7,572 6,052 5,778 5,477 8,095 8,208 Customers 14 U.S. Treasury securities 50,438 54,448 50,297 54,935 60,615 47,418 55,714 54,134 68,629 Federal agency securities 15 Debt 5,451 4,630 4,630 4,536 4,154 4,665 5,129 4,685 4,167 3,879 3,948 16 Mortgage-backed 8,416 7,949 8,222r 7,785 10,768 8,207 6,503 7,638 7,513 10,250 11,935 FUTURES AND FORWARD TRANSACTIONS4 By type of deliverable security U.S. Treasury securities 17 Bills 4,242 4,728 3,509 3,781 3,673 3,663 2,684 4,081 2,910 3,477 2,518 Coupon securities, by maturity 18 Less than 3.5 years 2,014 1,826 1,710 1,575 1,664 1,395 1,936 1,801 2,071 2,260 1,966 19 3.5 to 7.5 yeaTS 1,311 1,323 876 968 737 963 810 961 938 1,286 1,346 20 7.5 to 15 years 1,928 1,332 900 1,112 955 701 821 1,080 901 1,442 1,172 21 15 years or more 10,178 8,875 6,333r 7,615 6,552 5,445 5,433 7,444 7,330 11,709 7,593 Federal agency securities Debt, maturing in 22 Less than 3.5 years 38 54 68 21 27 15 138 108 37 18 27 23 3.5 to 7.5 years 44 36 68r 41 8 39 122 95 125 14 11 24 7.5 years or more 51 37 12 15 9 21 5 11 n.a. 5 12 Mortgage-backed 25 Pass-throughs 14,856 14,143 12,638r 12,003 13,558 14,670 12,521 10,341 10,585 15,587 14,528 26 Others 2,299 2,114 2,311 2,690 1,872 2,386 3,045 1,810 2,588 2,326 2,163 OPTIONS TRANSACTIONS5 By type of underlying security U.S. Treasury, coupon securities, by maturity 27 Less than 3.5 years 1,809 1,222 1,369 1,169 1,422 1,470 1,262 1,439 994 998 1,397 28 3.5 to 7.5 years 314 402 269 148 231 417 312 171 118 376 263 29 7.5 to 15 years 718 396 482 684 404 577 500 412 445 461 1,043 30 15 years or more 2,655 1,989 2,148r 1,756 2,012 1,991 2,118 2,653 1,623 2,947 4,755 Federal agency, mortgagebacked securities 31 Pass-throughs 722 356 253 294 406 258 184 311 404 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; options 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 options transactions for U.S. Treasury securities, 3. Includes such securities as collateralized mortgage obligations (CMOs), real bills; Federal agency securities, debt; and mortgage-backed securities, other than estate mortgage investment conduits (REMICs), interest only securities (IOs), pass-throughs are no longer available because of insufficient activity. and principal only securities (POs). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • August 1992 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 1992 1992, week ending IItteemm Feb. Mar. Apr. Apr. 1 Apr. 8 Apr. 15 Apr. 22 Apr. 29 May 6 May 13 May 20 Positions2 NET IMMEDIATE TRANSACTIONS3 By type of security U.S. Treasury securities 1 Bills 11,229 16,979 10,753 21,613 18,237 12,197 6,910 4,566 7,612 13,472 7,829 Coupon securities, by maturity 2 Less than 3.5 years 3,136 -1,536 -2,263 -3,258 -2,9% -4,357 1,091 -2,493 -3,358 -4,320 -686 3 3.5 to 7.5 years -12,822 -7,280 -4,372 -7,075 -2,561 -4,808 -5,637 -3,889 -5,828 -5,823 -7,019 4 7.5 to 15 years -3,002 -5,987 -7,111 -7,262 -7,798 -7,130 -7,508 -6,674 -2,299 -3,791 -3,448 5 15 years or more -1,755 -2,340 -2,205 -1,670 -2,246 -1,536 -1,983 -3,042 -2,844 -1,406 741 Federal agency securities Debt, maturing in 6 Less than 3.5 years 5,788 4,638 3,564 4,464 3,132 4,234 3,577 3,270 2,966 4,611 5,372 7 3.5 to 7.5 years 4,208 3,572 2,216 3,002 2,609 2,287 2,012 1,909 1,772 1,763 1,942 8 7.5 years or more 3,705 3,599 3,609 3,425 3,499 3,987 3,687 3,322 3,385 3,221 3,270 Mortgage-backed securities 9 Pass-throughs 25,445 25,550 32,097r 14,244 28,814 36,111 37,858 29,311 24,004 32,333 32,319 10 All others 16,417 14,209 15,680 15,542 14,737 15,844 15,837 16,271 16,043 18,265 1188,,990022 Other money market instruments 11 Certificates of deposit 2,717 2,593 2,882 2,523 2,463 3,187 2,880 3,032 3,014 2,986 3,082 12 Commercial paper 6,266 5,032 6,942 5,085 4,550 9,554 6,565 7,482 6,124 6,578 6,446 13 Bankers acceptances 1,456 894 960 850 1,163 1,027 937 714 1,053 1,165 1,379 FUTURE AND FORWARD TRANSACTIONS5 By type of deliverable security U.S. Treasury securities 14 Bills -7,362 -1,303 -763 -4,986 -5,157 -308 1,771 689 3,131 36 -1,518 Coupon securities, by maturity 15 Less than 3.5 years 1,810 1,216 996 491 737 752 1,016 1,200 3,468 2,766 2,563 16 3.5 to 7.5 years 2,817 3,177 3,852 3,768 3,%9 4,092 4,350 3,156 2,816 4,659 5,203 17 7.5 to 15 years 228 1,233 83 r 1,180 1,245 741 458 741 1,462 1,295 56 18 15 years or more -5,093 -6,388 -7,323r -7,776 -7,529 -8,607 -7,385 -5,668 -7,601 -5,246 -7,897 Federal agency securities Debt, maturing in 19 Less than 3.5 years -24 -29 -24 -66 -55 -23 -40 20 33 45 236 20 3.5 to 7.5 years -37 5 104r -98 -55 28 -2 491 -11 -39 -50 21 7.5 years or more 59 30 17 -2 -26 33 51 15 -1 16 21 Mortgage-backed securities 22 Pass-throughs -8,152 -6,280 - 14,895r 2,878 -7,466 -18,934 -22,980 -13,732 -7,947 -18,461 -22,479 23 All others 3,851 3,027 1,659 2,339 1,610 1,671 2,100 1,371 171 1,786 145 24 Certificates of deposit -112,128 -129,643 -138,412 -134,698 -141,629 -134,205 -135,019 -139,661 -164,071 -180,645 -1%,200 Financing6 Reverse repurchase agreements 25 Overnight and continuing 211,815 211,356 201,359 199,757 199,495 206,913 194,542 203,326 211,084 216,107 203,594 26 Term 278,414 262,127 289,867 253,598 287,001 292,852 293,314 290,727 295,164 312,695 286,833 Repurchase agreements 27 Overnight and continuing 322,505 320,589 328,181 302,500 304,994 338,665 329,285 342,323 336,056 336,954 343,177 28 Term 264,340 241,871 257,388 225,438 257,316 260,810 262,215 254,%3 249,081 277,7% 259,066 Securities borrowed 29 Overnight and continuing 71,618 75,832 78,173 78,315 77,141 75,264 79,757 80,113 80,942 80,181 80,785 30 Term 31,200 31,014 30,570 28,739 28,435 30,012 30,959 32,971 31,727 31,585 30,089 Securities loaned 31 Overnight and continuing 7,703 7,613 7,424 6,770 6,692 7,074 7,158 8,833 7,655 7,316 7,821 32 Term 1,436 1,864 3,042 2,572 2,392 3,335 3,165 3,637 975 1,015 873 Collateralized loans 33 Overnight and continuing 16,951 16,817 I7,398r 19,231 19,419 18,154 17,184 14,712 16,433 16,357 17,253 MEMO: Matched book7 Reverse repurchases 34 Overnight and continuing 150,143 153,365 149,760 150,788 150,841 153,516 145,449 149,027 150,174 151,105 145,240 35 Term 234,039 221,746 245,889 216,015 245,537 248,992 247,623 244,605 253,355 265,844 242,087 Repurchases 36 Overnight and continuing 176,327 177,773 178,680 171,789 171,600 177,700 175,011 188,776 1%,990 189,866 184,138 37 Term 197,647 180,439 197,3% 173,561 200,373 199,427 200,294 193,419 193,727 217,181 190,921 1. Data for positions and financing are obtained from reports submitted to the delivery. Forward contracts for U.S. Treasury securities and for federal agency Federal Reserve Bank of New York by the U.S. government securities dealers on debt securities are included when the time to delivery is more than five business its published list of primary dealers. Weekly figures are close-of-business Wednes- days. Forward contracts for mortgage-backed securities are included when the day data; monthly figures are averages of weekly data. 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 that settle terminated without advance notice by either party; term agreements have a fixed on the issue date of offering. Net immediate positions of mortgage-backed maturity of more than one business day . securities include securities purchased or sold that have been delivered or are 7. Matched-book data reflect financial intermediation activity in which the scheduled to 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. Future 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 for term financing of collateralized loans are no longer available because of insufficient specify delayed delivery. All futures positions are included regardless of time to 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 AAggeennccyy 11998888 11998899 11999900 11999911 Nov. Dec. Jan. Feb. Mar. 1 Federal and federally sponsored agencies 341,386 381,498 411,805 434,668 439,670 442,772 440,317 0 0 2 Federal agencies 37,981 35,668 35,664 42,159 42,951 41,035 42,872 40,791 41,322 3 Defense Department 13 8 7 7 7 7 7 7 7 4 Export-Import Bank ' 11,978 11,033 10,985 11,376 11,267 9,809 9,809 9,809 8,644 5 Federal Housing Administration4 183 150 328 393 365 397 335 372 421 6 Government National Mortgage Association participation certificates 1,615 0 0 0 0 0 0 0 0 7 Postal Service 6,103 6,142 6,445 6,948 8,421 8,421 8,421 8,421 9,771 8 Tennessee Valley Authority 18,089 18,335 17,899 23,435 22,891 22,401 24,300 22,182 22,479 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 3%,719 401,737 397,445 0 0 11 Federal Home Loan Banks 115,727 135,836 136,108 117,895 107,344 107,543 104,607 106,341 106,511 12 Federal Home Loan Mortgage Corporation 17,645 22,797 26,148 30,941 31,099 30,262 29,332 26,824 25,154 13 Federal National Mortgage Association 97,057 105,459 116,064 123,403 130,197 133,937 133,988 141,315 141,315 14 Farm Credit Banks8 55,275 53,127 54,864 53,590 52,105 52,199 51,673 51,867 52,651 15 Student Loan Marketing Association9 16,503 22,073 28,705 34,194 36,497 38,319 38,419 39,280 39,216 16 Financing Corporation10 1,200 5,850 8,170 8,170 8,170 8,170 8,170 0 0 17 Farm Credit Financial Assistance Corporation 0 690 847 1,261 1,261 1,261 1,261 0 0 18 Resolution Funding Corporation12 0 0 4,522 23,055 29,996 29,9% 29,9% 0 0 MEMO 19 Federal Financing Bank debt" 152,417 142,850 134,873 179,083 194,837 185,576 183,098 182,737 185,849 Lending to federal and federally sponsored agencies 20 Export-Import Bank3 11,972 11,027 10,979 11,370 11,261 9,803 9,803 9,803 88,,663388 21 Postal Service6 5,853 5,892 6,195 6,698 8,201 8,201 8,201 8,201 9,551 7.7 Student Loan Marketing Association 4,940 4,910 4,880 4,850 4,820 4,820 4,820 4,820 4,820 23 Tennessee Valley Authority 16,709 16,955 16,519 14,055 11,375 10,725 10,725 10,025 10,025 24 United States Railway Association 0 0 0 0 0 0 0 0 0 Other Lending14 75 Farmers Home Administration 59,674 58,496 53,311 52,324 48,534 48,534 48,534 48,534 48,534 76 Rural Electrification Administration 21,191 19,246 19,265 18,890 18,628 18,562 18,534 18,494 18,424 27 Other 32,078 26,324 23,724 70,8% 92,018 84,931 82,481 82,860 85,857 1. Consists of mortgages assumed by the Defense Depanment between 1957 10. The Financing Corporation, established in August 1987 to recapitalize the and 1963 under family housing and homeowners assistance programs. Federal Savings and Loan Insurance Corporation, undertook its first borrowing in 2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976. October 1987. 3. On-budget since Sept. 30, 1976. 11. The Farm Credit Financial Assistance Corporation, established in January 4. Consists of debentures issued in payment of Federal Housing Administration 1988 to provide assistance to the Farm Credit System, undertook its first insurance claims. Once issued, these securities may be sold privately on the borrowing in July 1988. securities market. 12. The Resolution Funding Corporation, established by the Financial Institu- 5. Certificates of participation issued before fiscal 1969 by the Government tions Reform, Recovery, and Enforcement Act of 1989, undertook its first National Mongage Association acting as trustee for the Farmers Home Admin- borrowing in October 1989. istration; Department of Health, Education, and Welfare; Department of Housing 13. The FFB, which began operations in 1974, is authorized to purchase or sell and Urban Development; Small Business Administration; and the Veterans obligations issued, sold, or guaranteed by other federal agencies. Since FFB Administration. incurs debt solely for the purpose of lending to other agencies, its debt is not 6. Off-budget. included in the main portion of the table in order to avoid double counting. 7. Includes outstanding noncontingent liabilities: notes, bonds, and deben- 14. Includes FFB purchases of agency assets and guaranteed loans; the latter tures. Some data are estimated. contain loans guaranteed by numerous agencies with the guarantees of any 8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, particular agency being generally small. The Farmers Home Administration item shown in line 17. consists exclusively of agency assets, while the Rural Electrification Administra- 9. Before late 1982, the Association obtained financing through the Federal tion entry contains both agency assets and guaranteed loans. Financing Bank (FFB). Borrowing excludes that obtained from the FFB, which is shown on line 22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • August 1992 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1991 1992 TTyyppee ooff iissssuuee oorr iissssuueerr,, 11998899 11999900 11999911 oorr uussee Oct. Nov. Dec. Jan. Feb.r Mar. Apr. May 1 AH issues, new and refunding* 113,646 120,339 154,402 11,357 17,734 15,796 12,612 14,032 15,956 15,141 14,155 By type of issue 2 General obligation 35,774 39,610 55,100 3,088 6,510 5,871 3,954 6,102 6,212 4,455 5,429 3 Revenue 77,873 81,295 99,302 8,269 11,224 9,925 8,658 7,930 9,744 10,686 8,726 By type of issuer 4 State 11,819 15,149 24,939 7,195 1,171 1,671 1,036 4,404 3,174 575 1,165 5 Special district or statutory authority2 71,022 72,661 80,614 605 10,817 9,435 8,243 6,605 7,511 9,802 8,251 6 Municipality, county, or township 30,805 32,510 48,849 3,557 5,746 4,690 3,333 4,404 5,271 4,764 4,739 7 Issues for new capital, total 84,062 103,235 116,953 8,967 13,495 12,020 7,127 9,467 10,637 9,020 9,259 By use of proceeds 8 Education 15,133 17,042 21,664 1,511 1,297 1,924 2,385 2,604 1,075 2,208 1,651 9 Transportation 6,870 11,650 13,395 1,744 2,682 488 1,194 1,996 1,412 921 1,669 10 Utilities and conservation 11,427 11,739 21,447 1,825 1,915 1,931 1,953 800 2,104 1,380 771 11 Social welfare 16,703 23,099 26,121 1,276 2,621 3,070 868 1,925 1,811 2,582 2,045 12 Industrial aid 5,036 6,117 8,542 973 349 1,083 218 123 528 558 133 13 Other purposes 28,894 34,607 n.a. 1,638 4,631 3,524 n.a. 2,019 3,707 1,371 2,990 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,, 11998899 11999900 11999911 oorr iissssuueerr Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. 1 All issues' 377,836 339,052 455,291 32,180 34,893 34,286 32,391 44,886r 37,316 37,539* 25,116 2 Bonds2 319,965 298,814 389,933 26,759 26,029 25,233 24,871 38,202 27,780 31,182* 19,778 By type of offering 3 Public, domestic 179,694 188,778 287,041 23,856 23,469 23,164 23,326 34,530 26,153* 28,652* 18,678 4 Private placement, domestic3 117,420 86,982 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 27,962 2,902 2,560 2,070 1,544 3,671 1,626 2,529* 1,100 By industry group 6 Manufacturing 76,175 52,635 85,535 7,119r 4,732 4,761 4,980 77,,332222 33,,884444 8,713 33,,667788 7 Commercial and miscellaneous 49,465 40,018 37,809 842r 1,209 1,819 1,953 2,698r 1,664 3,768* 1,980 8 Transportation 10,032 12,711 13,628 231 744 180 150 455 1,004 623 140 9 Public utility 18,656 17,621 23,994 1,315 1,430 3,073 2,238 3,761 3,569 1,896 3,223 10 Communication 8,461 6,597 9,331 408 958 226 1,085 2,467 416 300 985 11 Real estate and financial 157,176 169,231 219,637 16,844 16,957 15,175 14,464 21,499* 17,283 15,883* 9,772 12 Stocks2 57,870 40,165 75,467 5,421 8,864 9,053 7,520 6,684r 9,536 6,357 5,338 By type of offering n Public preferred 6,194 3,998 17,408 666 3,527 3,240 2,771 739 4,306 625 334 14 Common 26,030 19,443 47,860 4,755 5,337 5,813 4,749 5,945r 5,230 5,732 5,004 15 Private placement3 25,647 16,736 10,109 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 24,154 1,842 3,623 4,054 2,684 2,098r 2,541 2,637 1,523 17 Commercial and miscellaneous 7,446 10,171 19,418 858 2,095 2,158 2,535 993r 3,194 1,595 1,162 18 Transportation 1,929 369 2,439 0 16 0 0 426 78 193 n.a. 19 Public utility 3,090 416 3,474 55 320 174 233 268r 489 704 577 20 Communication 1,904 3,822 475 0 25 84 17 163 n.a. 53 333 21 Real estate and financial 34,028 19,738 25,507 2,666 2,622 2,583 2,014 2,736r 3,234 1,175 1,691 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 Sept. Oct. Nov. Dec. Jan Feb. Mar.r Apr. 1 Sales of own shares2 344,420 464,488 37,316 45,218 41,365 51,018 66,048 48,015 50,462 52,305 288,441 342,088 26,319 27,957 28,454 39,050 41,917 30,869 35,464 39,297 3 Net saJes3 55,979 122,400 10,997 17,261 12,911 11,968 24,131 17,146 14,998 13,008 4 Assets4 568,517 807,001 730,426 753,344 752,798 807,077 823,767 846,868 848,842 870,150 5 Cash5 48,638 60,937 53,884 59,902 59,689 60,292 62,289 64,022 64,216 67,602 6 Other 519,875 746,064 676,543 695,492 693,109 746,785 761,478 782,846 781,626 802,548 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 1992 AAccccoouunntt 11998899 11999900 11999911 Q2 Q3 Q4 Q1 Q2 Q3 Q4 QLR 1 Profits with inventory valuation and capital consumption adjustment 351.7 319.0 306.8 339.8 299.8 296.1 302.1 303.5 306.1 315.6 355.4 2 Profits before taxes 344.5 332.3 312.4 331.6 335.1 326.1 309.1 306.2 318.2 316.1 348.8 3 Profits tax liability 138.0 135.3 124.5 137.9 138.8 127.1 119.4 123.5 128.6 126.4 137.6 4 Profits after taxes 206.6 197.0 187.9 193.7 196.3 199.0 189.7 182.7 189.6 189.7 211.2 5 Dividends 127.9 133.7 137.8 132.5 133.8 136.2 137.8 136.7 138.1 138.5 138.6 6 Undistributed profits 78.7 63.3 50.2 61.2 62.5 62.8 51.9 46.1 51.5 51.2 72.6 7 Inventory valuation -17.5 -14.2 3.1 3.8 -32.6 -21.2 6.7 9.9 -4.8 .7 -4.0 8 Capital consumption adjustment 24.7 .8 -8.7 4.4 -2.7 -8.8 -13.6 -12.6 -7.3 -1.3 10.6 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 Q4 Q1 Q2 Q3 Q4 QL Q2 Q3 1 Total nonfarm business 532.61 529.20 553.86 530.13 535.50 524.57 527.86 528.88 536.49 558.50 557.55 Manufacturing 2 Durable goods industries 82.58 77.95 75.18 79.03 81.24 79.69 74.51 76.36 74.49 76.64 74.39 3 Nondurable goods industries 110.04 105.66 104.03 110.69 109.90 107.66 102.54 102.54 99.72 108.59 105.24 Nonmanufacturing 4 Mining 9.88 10.02 8.98 10.12 9.89 10.09 10.09 10.00 8.83 9.53 9.08 Transportation 5 Railroad 6.40 5.92 7.41 6.81 5.59 6.27 6.50 5.32 6.06 7.41 8.73 6 Air 8.87 10.22 10.00 7.54 11.18 10.10 9.81 9.79 9.12 10.68 10.13 7 Other 6.20 6.55 7.14 6.82 6.48 6.68 6.52 6.54 6.44 7.35 6.82 Public utilities 8 Electric 44.10 43.67 49.41 45.88 43.36 42.87 43.09 45.36 45.73 50.30 50.13 9 Gas and other 23.11 22.84 23.40 24.36 23.68 21.71 23.38 22.60 23.08 22.69 28.31 10 Commercial and other2 241.43 246.37 268.31 238.87 244.19 239.50 251.42 250.37 263.02 265.31 269.21 1. Figures are amounts anticipated by business. insurance, personal and business services, and communication. 2. "Other" consists of construction, wholesale and retail trade, finance and SOURCE. Survey of Current Business (U.S. Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Nonfinancial Statistics • August 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 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 99.6 103.4 106.1 111.9 116.5 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 TTyyppee ooff ccrreeddiitt Oct. Nov. Dec. Jan. Feb. Mar. 1 Total 258,957 292,638 309,709 310,876 311,632 309,709 306,905 308,162 306,698 Retail financing of installment sales 2 Automotive 39,479 38,110 33,204 34,167 33,664 33,204 31,764 31,886 30,230 3 Equipment 29,627 31,784 35,404 33,989 33,375 35,404 33,841 34,433 34,965 4 Pools of securitized assets 698 951 819 769 746 819 879 878 843 Wholesale 5 Automotive 33,814 32,283 32,487 31,831 32,292 32,487 31,788 32,877 32,123 6 Equipment 6,928 11,569 9,790 11,075 10,414 9,790 9,274 9,302 8,807 7 All other 9,985 9,126 8,459 8,407 8,418 8,459 8,072 8,271 8,554 8 Pools of securitized assets 0 2,950 4,905 4,458 4,639 4,905 4,661 4,690 4,717 Leasing 9 Automotive 26,804 39,129 44,445 45,837 45,299 44,445 44,277 43,009 42,919 10 Equipment 68,240 75,626 87,821 87,701 90,079 87,821 88,849 88,958 90,481 11 Pools of securitized assets 1,247 1,849 1,820 1,803 1,885 1,820 1,837 1,753 1,755 12 Loans on commercial accounts receivable and factored commercial accounts receivable 18,511 22,475 23,859 23,295 23,338 23,859 24,600 24,575 25,822 13 All other business credit 23,623 26,784 26,697 27,544 27,483 26,697 27,062 27,531 25,481 Net change (during period) 1 Total 24,066 33,681 17,071 3,277 756 -1,923 -2,804 1,257 -1,463 Retail financing of installment sales 2 Automotive 2,269 -1,369 -4,906 4488 -503 -460 -1,440 122 -1,656 3 Equipment 1,442 2,157 3,619 -833 -614 2,029 -1,562 591 533 4 Pools of securitized assets -26 253 -132 -28 -23 73 60 -1 -35 Wholesale 5 Automotive 861 -1,532 204 1,759 461 195 -699 1,089 -755 6 Equipment 957 4,641 -1,779 481 -662 -624 -516 28 -495 7 All other 628 -859 -668 -289 11 41 -387 199 283 8 Pools of securitized assets 0 2,950 1,955 405 181 266 -244 29 27 Leasing 9 Automotive 2,111 12,325 5,316 450 -538 -854 -168 -1,268 -89 10 Equipment 10,581 7,386 12,195 969 2,378 -2,258 1,028 109 1,524 11 Pools of securitized assets 526 602 -29 -41 82 -65 17 -84 2 12 Loans on commercial accounts receivable and factored commercial accounts receivable 825 3,964 1,383 91 43 520 741 -25 1,247 13 All other business credit 2,446 3,161 -87 264 -60 -786 366 469 -2,050 Digitized for FRASER http://fraser.stlo1u. isDfaetad .ino rthgis/ table also appear in the Board's G.20 (422) monthly statistical 2. Data on pools of securitized assets are not seasonally adjusted, release. For ordering address, see inside front cover. Federal Reserve Bank of St. Louis

Real Estate A35 1.53 MORTGAGE MARKETS Conventional Mortgages on New Homes Millions of dollars, except as noted 1991 1992 IItteemm 11998899 11999900 11999911 Nov. Dec. Jan. Feb. Mar. Apr. May Terms and yields in primary and secondary markets PRIMARY MARKETS Terms1 1 Purchase price (thousands of dollars) 159.6 153.2 155.0 162.6 159.1 153.9 154.7 167.0 162.5 158.7 2 Amount of loan (thousands of dollars) 117.0 112.4 114.0 116.0 113.8 114.9 110.2 123.2 122.7 119.7 3 Loan-price ratio (percent) 74.5 74.8 75.0 73.5 73.1 75.2 72.9 76.1 76.9 77.3 4 Maturity (years) 28.1 27.3 26.8 26.4 26.4 26.2 24.5 25.2 26.6 26.4 5 Fees and charges (percent of loan amount) 2.06 1.93 1.71 1.53 1.50 1.85 1.84 1.75 1.88 1.69 6 Contract rate (percent per year) 9.76 9.68 9.02 8.38 8.28 8.17 8.29 8.21 8.26 8.30 Yield (percent per year) 7 OTS series3 10.11 10.01 9.30 8.64 8.53 8.49 8.65 8.51 8.58 8.59 8 HUD series4 10.21 10.08 9.20 8.67 8.30 8.69 8.74 8.91 8.78 8.66 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (HUD series)5 10.24 10.17 9.25 8.69 8.10 8.72 8.74 8.85 8.79 8.66 10 GNMA securities6 9.71 9.51 8.59 8.09 7.81 7.81 8.01 8.20 8.10 8.00 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 104,974 113,329 122,837 126,624 128,983 131,058 133,399 136,506 139,808 140,899 12 FHA/V A-insured 19,640 21,028 21,702 21,547 21,7% 21,981 21,980 21,902 21,914 21,924 13 Conventional 85,335 92,302 101,135 105,077 107,187 109,077 111,419 114,604 117,894 118,975 Mortgage transactions (during period) 14 Purchases 22,518 23,959 37,202 3,299 5,114 4,809 5,358 7,282 7,258 5,576 Mortgage commitments (during period)1 15 Issued8 n.a. 23,689 40,010 3,806 5,285 7,129r 6,589r 6,738r SS^^OOCC 4,392 16 To sell9 n.a. 5,270 7,608 569 78 249 343 1,143 2,219 1,695 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)9 17 Total 20,105 20,419 24,131 25,239 26,809 27,384 27,030 28,821 n.a. n.a. 18 FHA/V A-insured 590 547 484 468 460 456 450 446 n.a. n.a. 19 Conventional 19,516 19,871 23,283 24,772 26,349 26,928 26,580 28,376 n.a. n.a. Mortgage transactions (during period) 20 Purchases 78,588 75,517 97,727 10,170 11,475 11,475 12,190 16,001 n.a. n.a. 21 Sales 73,446 73,817 92,478 9,545 9,537 10,521 11,998 13,639 15,876 17,985 Mortgage commitments (during period)10 22 Contracted 88,519 102,401 114,031 11,594 16,961 15,683 23,278 19,098 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 Nonfinancial Statistics • August 1992 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1990 1991 Type of holder and property 11998888 11998899 11999900 Q4 Q1 Q2 Q3 Q4P 1 AU 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 334,367 389,632 455,698 455,698 461,916 476,188 478,678 484,596 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 29,962 30,115 20 Commercial 187,549 205,472 215,121 215,121 216,768 219,204 218,179 218,111 21 Farm 9,590 9,604 10,756 10,756 11,001 10,721 10,233 10,968 22 Finance companies4 37,846 45,476 48,777 48,777 48,187 48,972 50,658 51,567 23 Federal and related agencies 200,570 209,498 250,761 250,761 264,189 276,798 283,455 282,731 24 Government National Mortgage Association 26 23 20 20 22 22 22 23 25 One- to four-family 26 23 20 20 22 22 22 23 26 Multifamily 0 0 0 0 0 0 0 0 27 Farmers Home 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' Administrations 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 103,013 110,721 116,628 116,628 119,196 122,806 125,451 128,578 36 One- to four-family 95,833 102,295 106,081 106,081 108,348 111,560 113,696 116,336 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 Administration 104 80 66 66 62 55 52 47 55 One- to four-family 26 21 17 17 14 13 12 11 56 Multifamily 0 0 0 0 0 0 0 0 57 Commercial 38 26 24 24 23 21 20 19 58 Farm 40 33 26 26 24 21 20 17 59 Individuals and others7 426,229 588,815 636,955 636,955 636,585 638,457 644,241 648,256 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 11998899 11999900 Nov. Dec. Jan Feb. Mar. Apr. Seasonally adjusted 1 Total 662,553r 716,825' 735,338' 727,960' 727,799' 728,618' 728,395' 727,404' 723,583 2 Automobile 285,364r 292,002r 284,993' 262,383' 263,003' 263,134' 261,659' 262,125' 260,169 3 Revolving 174,269r 199,308r 222,950' 242,573' 242,785' 244,288' 245,974' 245,259' 245,876 4 Mobile home 25,348 22,471 20,919 19,059 19,116 18,649 18,259 18,312 n.a. 5 Other 202,921r 225,515r 227,395' 223,004' 222,012' 221,196' 220,762' 220,020' 217,538 Not seasonally adjusted 6 Total 673,320r 728,877r 748,524' 729,758' 742,058' 733,294' 725,882' 721,091' 718,440 By major holder 7 Commercial banks 324,792 342,770 347,087' 333,272' 339,565' 335,320' 330,464' 327,697' 326,272 8 Finance companies 146,212 140,832 137,450 130,679 129,566 126,677 127,281 125,658 118,364 9 Credit unions 88,340 93,114 93,057' 91,849' 92,254' 91,894' 91.4691 91,164' 91,166 10 Retailers 48,438 44,154 44,822' 39.46C 44,030' 41,567' 40,015' 39,454' 39,553 11 Savings institutions 63,399 57,253 46,969' 41,337' 40,315' 39,448' 38,479' 37,142' 36,364 12 Gasoline companies 3,674 3,935 4,822 4,388 4,362 4,377 4,151 3,988 4,094 13 Pools of securitized assets n.a. 48,843 76,483 94,274 96,767 98,564 97,936 99,379 102,627 By major type of credit3 14 Automobile 285,42lr 292,06C 228855,,005500'' 263,249' 263,108' 261,871' 259,723' 225599,,553300'' 258,244 15 Commercial banks 123,392 126,288 124,913' 112,968' 111,912' 110,707' 110,077' 110,047' 108,979 16 Finance companies 97,245 82,721 74,396 67,907 66,549 65,151 65,412 64,464 61,717 17 Pools of securitized assets 0 18,235 24,537 26,237 27,997 29,431 28,482 29,848 28,679 18 Revolving 184,045 210,310 235,056' 243,349' 255,895' 249,320' 245,088' 242,267' 242,680 19 Commercial banks 123,020 130,811 132,433 125,734 132,625 126,736 123,913 121,748 128,520 20 Retailers 43,833 39,583 40,003' 34,928' 39,352' 36,953' 35,438' 34,892' 34,989 21 Gasoline companies 3,674 3,935 4,822 4,388 4,362 4,377 4,151 3,988 4,094 22 Pools of securitized assets n.a. 23,477 44,335 59,459 60,139 60,087 60,633 60,953 61,190 23 Mobile home 25,143 22,240 20,666 19,021 18,877 18,808 18,427 18,228 n.a. 24 Commercial banks 9,025 9,112 9,763 9,656 9,552 9,638 9,409 9,298 n.a. 25 Finance companies 7,191 4,716 5,252 5,401 5,520 5,509 5,509 5,524 n.a. 26 Other 181,339 207,646 210,451 208,633 208,868 208,541 206,927 205,003 217,516 27 Commercial banks 69,355 76,559 79,011 81,012 81,259 82,859 81,848 81,357 88,773 28 Finance companies 41,776 53,395 57,801 57,371 57,497 56,017 56,360 55,670 56,647 29 Retailers 4,605 4,571 4,523 4,332 4,478 4,411 4,381 4,367 4,564 30 Pools of securitized assets n.a. 7,131 7,611 8,578 8,631 9,046 8,821 8,579 12,758 1. The Board's series on amounts of credit covers most short- and intermedi- 2. Outstanding balances of pools upon which securities have been issued; these ate-term credit extended to individuals that is scheduled to be repaid (or has the balances are no longer carried on the balance sheets of the loan originator. option of repayment) in two or more installments. 3. Totals include estimates for certain holders for which only consumer credit Data in this table also appear in the Board's G.19 (421) monthly statistical totals are available. release. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Nonfinancial Statistics • August 1992 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1 Percent per year, except as noted 1991 1992 IItteemm 11998899 11999900 11999911 Oct. Nov. Dec. Jan. Feb. Mar. Apr. INTEREST RATES Commercial bank$2 1 48-month new car 12.07 11.78 11.14 n.a. 10.61 n.a. n.a. 9.89 n.a. n.a. 2 24-month personal 15.44 15.46 15.18 n.a. 14.88 n.a. n.a. 14.39 n.a. n.a. 3 120-month mobile home3 14.11 14.02 13.70 n.a. 13.37 n.a. n.a. 12.93 n.a. n.a. 4 Credit card 18.02 18.17 18.23 n.a. 18.19 n.a. n.a. 18.09 n.a. n.a. Auto finance companies 5 New car 12.62 12.54 12.41 12.23 10.79 10.41 10.04 10.19 10.92 11.07 6 Used car 16.18 15.99 15.60 15.46 15.06 14.90 14.34 14.00 14.19 14.11 OTHER TERMS4 Maturity (months) 7 New car 54.2 54.6 55.1 55.4 54.1 53.7 53.5 53.8 54.3 54.8 8 Used car 46.6 46.1 47.2 47.0 47.0 46.9 48.4 48.0 48.0 48.9 Loan-to-value ratio 9 New car 91 87 88 88 88 88 89 89 89 89 10 Used car 97 95 96 97 % 93 97 97 97 97 Amount financed (dollars) 11 New car 12,001 12,071 12,494 12,684 13,245 13,476 13,135 13,340 13,137 1133,,220088 12 Used car 7,954 8,289 8,884 9,077 9,029 9,105 9,007 8,912 8,908r 88,,888899 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 for only 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 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998877 11998888 11998899 11999900 11999911rr Q2 Q3 Q4 Ql Q2r Q3r Q4r Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors 767.2 643.9R 445.7 668.3r 592.7r 479.4r 438.0r 512.4 By lending sector and instrument 2 U.S. government 143.9 155.1 146.4 246.9 278.2 239.6 242.3 271.5 199.2 269.1 3 Treasury securities 142.4 137.7 144.7 238.7 292.0 234.2 243.6 272.5 223.2 275.3 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 5 Private 612.1 568.4 397. lr 167.4 428.7r 350.5r 208.0r 238.8r 6 B D y e bt in c s a t p ru it m al e n i t n struments 487.1 463.5 414.9 328.3r 246.3 334.2r 276.9r 251.lr 282.lr 310.0 1 1 1 9 8 2 7 0 1 C T M a o o C H M x r r p - o o t u e g o m m l x a r t m e i e a g f m t e a e e m s m r p c b o t i i o l r a o y t n l g b d r a l e s i g g s e i a s d t i e o n n t s ia l 3 2 8 7 7 2 2 3 9 3 1 4 4 4 . . . . . . 1 5 5 6 4 9 3 2 1 6 5 0 3 0 1 0 3 6 1 3 6 . . . . . . 8 7 5 4 0 7 2 2 7 4 7 6 1 1 4 2 5 5 8 6 . . . . . . 3 7 7 0 4 0 2 2 4 4 3 1 1 7 5 5 3 5 6 . . . . . . 5 6 7 8 4 f r ' r 1 1 - 7 3 3 4 6 8 2 1 5 0 . . . . . . 0 6 8 9 1 0 2 2 - 6 5 1 1 7 5 2 2 6 8 . . . . . . 5 2 2 5 4 8 r 2 1 2 1 3 8 1 4 9 0 6 7 7 . . . . . . 8 5 6 8 6 0 r 1 1 6 6 5 1 4 5 3 7 9 8 . . . . . . 2 5 3 2 6 7 r r 1 r r 1 1 7 2 2 8 4 1 6 5 4 0 0 4 . . . . . . 3 7 7 9 4 2 r r 1 r 1 1 9 3 7 6 1 6 4 5 7 1 4 . . . . . . 5 3 8 6 3 5 1 1 1 1 3 4 5 6 Ot B C he a o F r n n a k d s r u e m l m b o t a e n i r n s c s n r tr e . u e d m . i c t ents - 9 3 6 9 1 3 . . . . 4 8 9 5 1 - 4 5 4 2 0 0 8 . . . 1 . 5 4 6 1 - 4 3 5 1 3 9 3 . . . 5 . 1 9 5 6 1 - 8 4 l .1 . . . 8 3 l r r - - - 1 7 3 - 2 8 2 . . . . 2 1 9 6 - 9 2 1 1 4 6 4 . . . 2 . 5 7 2 - 7 1 6 3 3 1 . . . . 9 6 4 3 — - - 2 4 4 2 3 . . . 2 . 2 2 l r r - - 4 1 3 0 . . . . 4 6 2 2 r r r - - - 6 1 3 -2 6 6 7 . . . . 3 7 2 0 17 Open market paper 1.6 11.9 21.4 9.7 -18.4 -.7 19.3 -34.4 -6.9 -16.1 18 Other 46.8 45.8 49.1 43.7 -15.8 54.4 47.7 17.6 -26.0r 2.6 By borrowing sector 2 2 2 2 2 1 3 0 1 2 4 9 N S H t o o a N C F n u t a e o o f s r i r e n m n a p h f n a o a o d n r r l c m d a l i t o a e n c l a o b l n u g c s o o in v r e p e s o r s n r a m te e nt - 3 1 1 1 8 6 0 3 9 0 3 5 2 8 3 . . . . . . 6 0 9 2 5 7 3 2 1 - 4 6 4 1 9 7 8 2 7 5 2 . . . . . . 5 9 4 4 8 5 2 2 1 6 5 1 8 6 3 0 7 7 6 1 . . . . . . 2 0 9 3 3 6 2 4 9 7 5 1 2 9 2 7 5 6 . . . . . 6 5 0 ^ 3 6 r r - - 1 2 1 2 5 3 4 7 4 7 1 . . . . . . 4 2 5 5 1 7 2 1 - 4 9 7 1 0 5 8 6 4 4 5 . . . . . 5 . 9 5 8 1 3 r r 2 7 3 9 2 1 2 4 8 2 3 1 . . . . . . 6 7 8 0 2 lr r 1 2 3 1 6 4 4 0 2 1 5 . . . . . . 8 6 4 1 6 0 r r 1 2 2 3 7 1 4 5 0 6 7 1 . . . . . . 5 5 2 4 2 r r r r r 1 2 3 3 7 8 2 6 8 6 . . . . . . 5 3 9 0 4 1 25 Foreign net borrowing in United States 6.2 6.4 10.6 23.5 15.1 36.3 26.2 19.0 62.8 -59.6 26 Bonds 7.4 6.9 5.3 21.6 16.0 20.7 1.9 28.6 11.5 14.7 27 Bank loans n.e.c -3.6 -1.8 -.1 -2.9 3.1 1.3 2.0 -5.2 8.1 -3.5 28 Open market paper 3.8 8.7 13.1 12.3 6.4 23.1 25.6 15.6 46.7 -51.9 29 U.S. government loans -1.4 -7.5 -7.7 -7.5 -10.4 -8.8 -3.3 -20.0 -3.5 -18.8 30 Total domestic plus foreign 729.0 773.6 725.3 667.4r 460.8 704.6r 618.9r 498.4r 500.8r 452.8 Financial sectors 31 Total net borrowing by financial sectors 264.1 213.4 191.0 169.7r 143.7 193.6' 93.7r 222.4r 126.7r 87.7 172.7 187.4 By instrument 32 U.S. government-related 171.8 119.8 151.0 167.4 147.8 172.8 146.2 185.6 149.6 118.1 172.9 150.7 33 Sponsored-credit-agency securities 30.2 44.9 25.2 17.1 9.2 11.6 13.7 37.1 13.1 -29.7 20.6 32.6 34 Mortgage pool securities 142.3 74.9 125.8 150.3 138.6 161.2 132.5 148.9 136.5 147.8 152.3 117.9 35 Loans from U.S. government -.8 .0 .0 -.1 .0 .0 .0 -.5 .0 .0 .0 .2 3 3 6 7 Pri C v o a r te p orate bonds 4 92 4 . . 4 2 9 1 3 8 . . 7 2 4 1 0 7 . . 0 7 1 2 7 . . 3 (f r - 6 4 2 . . 2 1 8 2 4 o . y 1 r — — 6 5 2 2 . . 4 5 r r 2 3 6 6 . . 5 8 r r -2 6 2 3 . . 8 5 r r -3 6 0 7 . . 4 4 4 - 1 .2 .7 7 36 5 . . 7 6 38 Mortgages .4 .3 .0 .3 .6 .2 .1 .6 .1 -.1 .9 1.5 39 Bank loans n.e.c -3.6 .6 1.9 1.2 3.2 2.1 2.0 1.1 1.3 -2.9 9.6 4.8 40 Open market paper 26.9 54.8 31.3 8.6 -32.0 -38.6 35.1 24.2 -52.0 -46.3 -16.0 -13.7 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 42 Sponsored credit agencies 29.5 44.9 25.2 17.0 9.2 11.6 13.7 36.7 13.1 -29.7 20.6 32.8 4 4 3 4 M Pr o iv rt a g te a ge pools 1 9 4 2 2 . . 4 3 9 74 3 . . 9 7 1 4 2 0 5 . . 0 8 15 2 0 . .3 3 r 1 - 3 4 8 .2 .6 1 2 61 0 . ^ 2 - 1 5 3 2 2 . . 5 5 r 1 3 4 6 8 . .9 8 r - 1 2 3 2 6 . . 8 5 r - 1 3 4 0 7 . . 4 8 15 - 2 .2 .3 1 3 1 6 7 . . 7 9 45 Commercial banks 6.2 -3.0 -1.4 -1.1 -13.3 -9.9 -5.8 14.2 -17.9 -11.9 -8.5 -15.0 4 4 6 7 B Sa a v n i k n g a s f f a il n i d a te l s o an associations 1 1 9 4 . . 6 3 1 5 9 . . 2 9 -14 6 . . 1 2 - - 2 2 9 7 . .7 7 r -3 -2 8 . . 8 6 - - 4 2 3 9 . .5 6 r - - 2 4 9 2 . .0 2 r -30.8 -4 -8 2. .0 0 r -4 -3 9 . . 3 4 -3 -7 9 . . 8 6 -23 8 . . 5 0 4 4 8 9 M Fi u n t a u n a c l e s c a o vi m n p gs a n b i a e n s ks 8 4 . . 1 7 33 1 . . 5 9 - 3 1 1 . . 4 1 2 - 3 .5 .2 - 2 3 3 . . 5 4 4 4 7 . . 1 4 -2 1 .7 .1 25 1 . . 1 3 1 1 0 . . 9 8 r - 7 .9 .3 - 2 6 2 . . 2 0 - 5 8 3 . . 7 6 5 5 1 0 S R e e c a u l r e i s ti t z a e te d i c n r v e e d s it t m ob en li t g a tr t u io s n ts ( ( S R C E O I ) T s i ) s suers 39. . 1 4 32 3 . . 5 6 - 2 1 1 . . 9 4 - 4 1 0 . . 9 1 - 3 1 2 . . 5 1 - 5 2 5 . . 7 1 - 2 1 7 . . 4 5 45. . 6 3 3 - 2 .6 .9 r 2 - 8 .1 .0 40. . 0 0 - 2 5 7 . . 2 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • August 1992 1.57—Continued 1990 1991 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998877 11998888 11998899 11999900 11999911rr Q2 Q3 Q4 Q1 Q2r Q3r Q4r All sectors 52 Total net borrowing, all sectors 993.1 987.0 916.3 837.1' 604.4 898.2r 712.7' 720.8' 627.5' 540.5 654.8 594.9 53 U.S. government securities 316.4 274.9 297.3 414.4 426.0 412.4 388.5 457.5 348.8 387.3 538.4 429.5 54 State and local obligations 83.5 53.7 65.0 45.5 31.8 56.2 36.5 18.3 25.3 35.6 37.7 28.5 55 Corporate and foreign bonds 130.7 128.5 97.3 85.7r 156.7 170.6r -30.7r 120.4r 151.7r 178.7 138.8 157.9 56 Mortgages 324.9 306.7 275.7 236.0r 136.5 212.3 210.7 168.2r 180.3r 177.7 50.8 137.1 57 Consumer credit 33.5 50.4 43.1 14.3 -12.1 14.2 13.4 -4.2 — 10.6r -16.0 -19.6 -2.3 58 Bank loans n.e.c 2.7 39.3 41.6 -,6r -26.3 30.1 -2.8 —26.2r 9.6r -43.6 -14.4 -56.9 59 Open market paper 32.3 75.4 65.9 30.7 -44.0 -16.3 79.9 5.4 -12.2 -114.3 -42.5 -6.9 60 Other loans 69.1 58.1 30.4 11.4 -64.1 18.6 17.1 -18.6 —65.3r -64.8 -34.4 -92.1 61 MEMO: U.S. government, cash balance -7.9 10.4 -5.9 8.3 14.5 -17.6 18.4 24.2 34.6 -35.8 -14.6 73.6 Totals net of changes in U.S. government cash balances 62 Net borrowing by domestic nonfinancial sectors 730.7 756.8 720.6 635.6r 431.2 668855..99rr 574.3r 455.2r 403.4r 554488..22 478.1 295.1 63 Net borrowing by U.S. government 151.8 144.7 152.3 238.6 263.8 257.2 223.8 247.3 164.6 304.9 380.2 205.4 External corporate equity funds raised in United States 64 Total net share issues 7.1 -119.3 -65.4 15.8 199.7 56.4 -19.5 27.0 101.2' 179.7 235.0 282.9 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 49.1 -20.7 -65.4 -56.7 3.7r 54.5 56.9 81.5 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 1.4 3.3 6.5 2.8 -10.6r 6.8 5.6 3.9 69 Foreign shares purchased in United States -2.1 .9 17.3 6.9 30.2 23.9 2.2 1.6 26.2 36.6 34.3 23.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A41 1.58 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS Billions of dollars, except as noted; quarterly data at seasonally adjusted annual rates 1990 1991r Transaction category or sector 1987 1988 1991r Q2 Q3 Q4 QL Q2 Q3 1 Total funds advanced in credit markets to domestic nonflnancial sectors 722.8 767.2 714.7 643.9"° 668.3r 592.7r 479.4r 512.4 2 Total net advances by federal agencies and foreign sectors 208.1 188.1 244.4 290.1 347.4 190.8 289.8 212.2 By instrument 3 U.S. government securities 70.1 85.2 30.2 74.4 98.9 100.9 142.0 45.6 140.1 50.9 4 Residential mortgages 139.1 86.3 137.9 184.1 164.7 185.2 176.3 180.5 176.0 186.8 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 18.8 31.0 56.4 -19.6 9.4 23.1 By lender 7 U.S. government -7.9 -9.4 -2.6 33.6 10.7 36.1 63.6 -3.7 35.0 27.3 8 Sponsored credit agencies and mortgage pools 169.3 112.0 125.3 166.7 152.9 163.6 182.4 141.9 164.0 124.1 9 Monetary authority 24.7 10.5 -7.3 8.1 31.1 30.8 26.2 -24.2 60.2 1.8 10 Foreign 61.8 95.0 72.7 53.2 49.8 59.6 75.1 76.8 30.6 59.1 Agency and foreign borrowing not included in line I 11 Sponsored credit agencies and mortgage pools 171.8 119.8 151.0 167.4 147.8 172.8 146.2 185.6 149.6 118.1 12 Foreign 6.2 6.4 10.6 23.5 15.1 36.3 26.2 19.0 62.8 -59.6 13 Total private domestic funds advanced 652.8 685.3 688.2 573.1r 364.2 587.2r 417.8r 493.2r 360.5 358.7 14 U.S. government securities 246.3 189.7 267.2 340.0 327.1 311.5 246.6 411.9 208.7 336.4 1 1 1 1 5 7 8 6 O C R St e o t a h s r t i e p e d r o e a r m n n a t d o t i e a r l l t o a g m c n a a d g o l e r f s o t o g b r a a l e n i g i g d g e a n s t l i o b o a o n n s n s ds 1 1 8 6 2 5 3 7 0 9 . . . . 5 5 8 2 2 1 9 0 5 6 4 5 3 1 . . . . 4 7 9 3 1 6 9 6 8 6 5 5 3 . . . . 5 0 5 1 6 4 6 3 5 2 5 4 . . . . 5 8 4 8 r r r - -8 2 3 7 5 2 1 5 . . . . 7 7 8 6 9 7 2 5 2 5 4 6 . . . . 1 7 2 7 r 3 2 2 5 6 6 8 2 . . . . 5 2 6 6 r - - 1 3 9 1 7 0 5 8 . . . . 7 3 l l r r r -2 2 4 6 0 5 5 6 . . . . 9 2 3 5 - - 1 2 3 3 8 1 0 5 9 . . . . 2 0 6 3 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 498.lr 539.2r 535.5r 391.3r 275.8r 516.3r 311.8 169.4 By lending institution 21 Commercial banks 135.3 157.0 177.0 121.2 83.4 140.9 107.6 61.8 123.3 30.1 22 Savings institutions 137.6r 118.7r -90.2r -150.8r -144.9 -218.5r •165.7r -174.0r -184.1 -167.9 23 Insurance and pension funds 149.1 176.4 197.9 183.7 202.6 241.6 135.6 188.3 228.7 208.3 24 Other financial institutions 76.2 87.1 250.8r 237.2 195.9 111.7 216.9 440.2 144.0 98.9 By source of funds 2 2 2 5 6 7 C O Pr r t i e h v d e a r i t t e s m o d u a o r r m k ce e e s t s t b ic o r d r e o p w o i s n i g t s and repurchase agreements . 2 1 3 9 7 2 1 3 . . . 4 8 9 r 2 2 9 2 1 3 9 6 . . . 7 6 0 r 2 2 4 8 0 0 6 9 . . . 0 5 0r 3 5 3 2 3 5 . . . 3 4 6 r r r - 3 1 - 5 4 0 1 . . . 6 2 8 2 - 2 6 5 0 0 . . . 7 6 9 r r - 3 5 4 0 2 5 1 . . . 5 6 5 r r r - 5 2 0 3 2 2 6 . . . 7 2 8 r r r - 2 2 9 4 2 3 0 . . . 8 8 9 -1 - 3 3 2 2 0 6 6 . . . 4 9 7 28 Foreign funds 43.7 9.3 -9.9 24.0 -17.7 23.5 87.5 -28.5 9.4 -65.6 29 Treasury balances -5.8 7.3 -3.4 5.3 5.5 -1.0 13.7 3.4 20.6 -22.3 3 3 0 1 I O n t s h u e r r a , n n c e e t and pension reserves 9 9 4 9 . . 9 2 r 1 2 7 5 4 . .1 2 r 1 1 9 0 2 7 . . 0 3 r 1 1 6 4 4 2 . . 1 2 r 2 1 1 4 9 4 . . 6 4 20 2 9 8 . . 1 9 r 1 7 2 2 8 . .3 0 r 2 3 2 0 2 5 . . 1 2 r -2 2 2 8 4 7 . . 2 9 2 1 4 7 3 1 . . 3 3 Private domestic nonflnancial investors 3 3 2 3 Di U re . c S t . le g n o d v i e n r g n m in e c n r t e s d e it c u m ri a t r ie k s e ts 2 9 4 9 7 . . 4 lr r 2 1 3 3 9 4 . .5 8 r 1 12 9 5 2 . . 5 7 r 1 1 8 2 4 6 . . 4 lr r 2 26 3 . . 8 0 3 1 3 7 2 5 . . 3 1 r r 1 7 3 0 3 . . 8 9 r r — 13 6 . . 7 9 r r 2 8 5 . . 3 8 1 16 5 3 8 . . 5 9 3 3 3 3 5 4 6 7 C O O St o t p a h r e t p e e n r o a m r l n a o a d t a e r n k l s a o e n c t a d a n p l d a f o o p m b r e e l r o i i g r g a t n g t i a b o g o n e s n s d s 9 3 1 6 6 1 3 . . . . 1 5 7 3 r -3 4 5 3 2 1 7 9 . . . . 9 9 3 0 r -2 6 2 7 2 2 8 . . . . 7 9 7 lr r -1 2 2 1 1 4 7 7 . . . . 8 9 6 l r r r -3 1 3 7 2 9 . . . . 5 8 2 6 4 3 4 3 0 2 9 5 . . . . 0 7 6 0 r r -10 2 9 7 8 9 . . . . 6 8 8 4 r r -1 - - 4 2 4 3 1 . . . . 5 2 6 0 r r -5 4 1 1 2 2 4 3 . . . . 6 0 9 2 -9 4 2 2 6 9 2 0 . . . . 6 3 7 0 38 Deposits and currency 190.3 233.1 225.7 83.0 18.4 24.7 74.2 20.4 257.4 -103.4 3 4 9 0 C C h u e rr c e k n a c b y l e deposits 1 - 9 .3 .0 1 12 4 . . 5 7 11. .6 7 22. . 6 4 4 1 7 9 . . 8 8 2 4 2 . .6 3 r - 3 3 0 . . 6 9 r -2 1 3 6 . .9 R 3 4 8 9 . . 7 4 1 6 2 . . 0 3 41 Small time and savings accounts 76.0 122.4 98.2 59.7r 11.2 23.9r 40.7r 60.lr 103.4 .1 42 Money market fund shares 28.9 21.2 86.7 56.0 25.8 -32.7 106.0 42.1 184.3 -71.8 43 Large time deposits 47.6 40.6 9.1 -42.2r -81.7 - 19.5r —71.0r -65.2r -48.3 -61.1 44 Security repurchase agreements 21.6 32.9 14.9 -20.5 -13.7 18.2 -26.5 -36.6 -47.9 -6.4 45 Deposits in foreign countries -2.5 -11.2 4.4 7.1 9.2 7.8 -2.2 26.3 -22.2 17.5 46 Total of credit market instruments, deposits, and currency 437.4r 472.9r 418.4r 41.4 357.1' 145.0r 283.2 55.5 MEMO 47 Public holdings as percent of total 34.0 26.9 25.9 39.2 53.0 41.2r 56.1 38.3r 57.9 46.9 48 Private financial intermediation (percent) 76.3r 78.7r 77.8r 68.3r 92.5 47.(f 70.5r 104.7r 86.5 47.2 49 Total foreign funds 105.5 104.3 62.8 77.2 32.1 83.1 162.6 48.3 40.0 -6.5 Corporate equities not included above 50 Total net issues 7.1 -119.3 -65.4 15.8 199.7 56.4 -19.5 27.0 101.2 179.7 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 49.1 -20.7 -65.4 -56.7 3.7 54.5 53 Acquisitions by financial institutions 22.2 4.1 18.9 27.5 85.9 64.6 -44.4 53.2 81.7 74.3 54 Other net purchases -15.1 -123.3 -84.3 -11.7 113.8 -8.3 24.9 -26.2 19.6 105.3 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 and 52. Includes issues by financial institutions. 28. Foreign deposits at commercial banks, plus bank borrowings from foreign NOTE. Full statements for sectors and transaction types in flows and in amounts branches, plus liabilities of foreign banking agencies to foreign affiliates, less outstanding appear in the Board's Z.l (780) quarterly statistical release. For Digitized for FcRlaiAmSs oEnR fo reign affiliates and deposits by banking institutions in foreign banks. ordering address, see inside front cover. 29. Demand deposits and note balances at commercial banks. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • August 1992 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING Billions of dollars, end of period 1990 1991* Q2 Q3 Q4 Qi Q2 Q3 Q4 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 9,242.3 9,987.1 10,759.9* 11,196.4 10,444.6* 10,597.3* 10,759.9* 10,821.8 10,940.1 11,062.9 11,196.4 By lending sector and instrument 2 U.S. government 2,104.9 2,251.2 2,498.1 2,776.4 2,347.4 2,410.4 2,498.1 2,548.8 2,591.9 2,687.2 2,776.4 3 Treasury securities 2,082.3 2,227.0 2,465.8 2,757.8 2,314.4 2,377.8 2,465.8 2,522.4 2,567.1 2,669.6 2,757.8 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 8,261.8r 8,420.0 8,097.2* 8,186.9* 8,261.8* 8,273.0 8,348.2 8,375.7 8,420.0 By instrument 6 Debt capital instruments 5,035.8 5,467.9 5,932.lr 6,178.4 5,792.8* 5,868.0* 5,932.1* 5,989.7 6,073.0 6,121.4 6,178.4 7 Tax-exempt obligations 939.4 1,004.4 1,049.8 1,081.6 1,031.4 1,043.0 1,049.8 1,052.8 1,060.1 1,072.3 1,081.6 8 Corporate bonds 852.6 926.9 974.0* 1,052.6 950.2* 957.7* 974.0* 993.1 1,017.2 1,037.6 1,052.6 9 Mortgages 3,243.8 3,536.6 3,908.4* 4,044.3 3,811.2 3,867.3 3,908.4* 3,943.8 3,995.6 4,011.5 4,044.3 10 Home mortgages 2,173.9 2,404.3 2,765.3* 2,905.4 2,675.7 2,726.0 2,765.3* 2,790.9 2,838.2 2,870.1 2,905.4 11 Multifamily residential 286.7 304.4 305.7 307.7 300.5 304.8 305.7 309.4 310.4 306.1 307.7 12 Commercial 696.4 742.6 753.4* 747.4 751.1 752.3 753.4* 759.6 763.2 752.1 747.4 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 2,329.6* 2,241.6 2,304.4 2,318.9 2,329.6* 2,283.3 2,275.2 2,254.3 2,241.6 15 Consumer credit 743.6 794.7 808.9 797.1 789.4 798.7 808.9 785.3 784.9 786.1 797.1 16 Bank loans n.e.c 710.0 759.8 753.8* 724.2 753.3 750.5 753.8* 747.8 739.9 733.2 724.2 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 562.3 606.4 650.1 621.8 633.1 637.9 650.1 629.5 631.0 628.0 621.8 By borrowing sector 19 State and local government 752.5 815.7 858.3 882.8 841.8 852.9 858.3 861.3 866.7 874.6 882.8 20 Household 3,188.9 3,501.5 3,897.6* 4,058.1 3,777.2 3,841.9 3,897.6* 3,917.3 3,966.0 4,004.3 4,058.1 21 Nonfinancial business 3,196.0 3,418.7 3,505.9* 3,479.2 3,478.3* 3,492.0* 3,505.9* 3,494.4 3,515.4 3,496.8 3,479.2 22 Farm 137.6 139.2 140.5 139.6 138.7 141.6 140.5 136.8 139.6 140.4 139.6 23 Nonfarm noncorporate 1,130.5 1,180.5 1,194.3 1,163.5 1,195.4 1,195.1 1,194.3 1,191.8 1,192.7 1,175.9 1,163.5 24 Corporate 1,927.9 2,098.9 2,171.1* 2,176.1 2,144.2* 2,155.4* 2,171.1* 2,165.8 2,183.1 2,180.6 2,176.1 25 Foreign credit market debt held in United States 255.7 265.4 288.9 304.0 277.0 283.4 288.9 301.4 288.8 293.5 304.0 26 Bonds 94.0 98.5 120.1 136.1 112.4 112.9 120.1 122.9 126.6 130.6 136.1 27 Bank loans n.e.c 21.5 21.4 18.5 21.6 19.3 19.8 18.5 20.5 19.7 20.0 21.6 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 64.6 80.2 79.3 75.0 70.9 68.4 64.9 64.6 30 Total credit market debt owed by nonfinancial sectors, domestic and foreign 9,498.0 10,252.5 11,048.8* 11,500.4 10,721.6* 10,880.7* 11,048.8* 11,123.2 11,228.8 11,356.4 11,500.4 Financial sectors 31 Total credit market debt owed by financial sectors 1,999.8 2,219.4 2,511.1* 2,660.5 2,423.5* 2,446.4* 2,511.1* 2,541.0 2,562.2 2,604.6 2,660.5 By instrument 32 U.S. government-related 1,098.4 1,249.3 1,418.4 1,566.2 1,330.1 1,367.9 1,418.4 1,452.1 1,480.4 1,524.4 1,566.2 33 Sponsored credit-agency securities 348.1 373.3 393.7 402.9 381.0 384.4 393.7 397.0 389.6 394.7 402.9 34 Mortgage pool securities 745.3 871.0 1,019.9 1,158.5 944.2 978.5 1,019.9 1,050.3 1,086.0 1,124.8 1,158.5 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 1,092.6* 1,094.3 1,093.4* 1,078.5* 1,092.6* 1,088.8 1,081.9 1,080.3 1,094.3 37 Corporate bonds 331.9 378.2 515.0* 582.9 526.3* 510.2* 515.0* 540.1 555.8 565.9 582.9 38 Mortgages 3.4 3.4 4.2 4.8 4.0 4.1 4.2 4.2 4.2 4.4 4.8 39 Bank loans n.e.c 35.6 37.5 38.6 41.8 36.5 36.7 38.6 36.5 37.0 39.0 41.8 40 Open market paper 377.7 409.1 417.7 385.7 400.3 409.6 417.7 400.9 390.1 387.0 385.7 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 353.1 378.3 398.5 407.7 385.9 389.4 398.5 401.8 394.4 399.5 407.7 43 Mortgage pools 745.3 871.0 1,019.9 1,158.5 944.2 978.5 1,019.9 1,050.3 1,086.0 1,124.8 1,158.5 44 Private financial sectors 901.4 970.0 1,092.6* 1,094.3 1,093.4* 1,078.5* 1,092.6* 1,088.8 1,081.9 1,080.3 1,094.3 45 Commercial banks 78.8 77.4 76.3 63.0 71.6 70.7 76.3 68.1 65.9 64.6 63.0 46 Bank affiliates 136.2 142.5 114.8 112.0 134.3 122.9 114.8 114.4 113.3 110.6 112.0 47 Savings and loan associations 159.3 145.2 113.1* 74.5 123.9* 114.9* 113.1* 102.2 89.3 77.6 74.5 48 Mutual savings banks 18.6 17.2 16.7 13.2 16.7 16.2 16.7 16.4 16.6 15.2 13.2 49 Finance companies 361.4 392.5 536.0 563.0 529.5 529.8 536.0 542.3 544.1 549.6 563.0 50 Real estate investment trusts (REITs) 11.4 10.1 10.6 9.9 10.4 10.3 10.6 10.6 10.8 11.0 9.9 51 Securitized credit obligation (SCO) issuers... 135.7 185.1 225.2 258.7 206.9 213.8 225.2 234.8 241.8 251.8 258.7 All sectors 52 Total credit market debt, domestic and foreign.. 11,497.8 12,471.9 13,559.8* 14,160.9 13,145.1* 13,327.1* 13,559.8* 13,664.2 13,791.1 13,961.0 14,160.9 53 U.S. government securities 3,198.3 3,495.6 3,911.7 4,337.7 3,672.5 3,773.4 3,911.7 3,996.1 4,067.5 4,206.7 4,337.7 54 State and local obligations 939.4 1,004.4 1,049.8 1,081.6 1,031.4 1,043.0 1,049.8 1,052.8 1,060.1 1,072.3 1,081.6 55 Corporate and foreign bonds 1,278.5 1,403.6 1,609.0* 1,771.6 1,588.9* 1,580.8* 1,609.0* 1,656.2 1,699.6 1,734.1 1,771.6 56 Mortgages 3,247.2 3,540.1 3,912.6* 4,049.1 3,815.3 3,871.4 3,912.6* 3,948.0 3,999.8 4,015.9 4,049.1 57 Consumer credit 743.6 794.7 808.9 797.1 789.4 798.7 808.9 785.3 784.9 786.1 797.1 58 Bank loans n.e.c 767.2 818.6 810.9* 787.7 809.1 807.0 810.9* 804.8 796.5 792.2 787.7 59 Open market paper 513.4 579.2 609.9 565.9 594.0 612.9 609.9 608.8 583.6 572.0 565.9 60 Other loans 810.2 835.7 847.0 770.3 844.6 840.0 847.0 812.2 799.0 781.7 770.3 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 1991r TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998888 11998899 11999900 11999911rr Q2 Q3 Q4 Ql Q2 Q3 Q4 1 Total funds advanced in credit markets to domestic nonfinancial sectors 9,242.3 9,987.1 10,759.9r 11,196.4 10,444.6r 10,597.3r 10,759.9r 10,821.8 10,940.1 11,062.9 11,196.4 2 Total held by federal agencies and foreign sector 2,223.2 2,413.1 2,673.3 2,915.2 2,529.9 2,611.3 2,673.3 2,728.1 2,788.1 2,853.5 2,915.2 By instrument 3 U.S. government securities 651.5 688.9 763.3 862.2 714.1 745.6 763.3 789.5 808.7 835.7 862.2 4 Residential mortgages 900.4 1,038.4 1,221.0 1,385.8 1,126.5 1,171.8 1,221.0 1,261.4 1,306.8 1,351.7 1,385.8 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 518.5 544.1 571.9 588.2 563.1 576.0 571.9 570.3 577.9 582.1 588.2 By type of lender 7 U.S. government 214.6 207.0 240.6 248.7 227.4 224422..77 224400..66 247.3 225555..44 225544..88 224488..77 8 Sponsored credit agencies and mortgage pools 1,113.0 1,238.2 1,403.4 1,556.3 1,315.0 1,360.5 1,403.4 1,438.8 1,468.7 1,514.2 1,556.3 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 655.0 734.6 787.9 837.6 749.8 767.5 787.9 794.7 810.3 819.7 837.6 Agency and foreign debt not in line 1 11 Sponsored credit agencies and mortgage pools 1,098.4 1,249.3 1,418.4 1,566.2 1,330.1 1,367.9 1,418.4 1,452.1 11,,448800..44 11,,552244..44 11,,556666..22 12 Foreign 255.7 265.4 288.9 304.0 277.0 283.4 288.9 301.4 288.8 293.5 304.0 13 Total private domestic holdings 8,373.2 9,088.7 9,793.9r 10,151.4 9,521.8r 9,637.3r 9,793.9r 9,847.2 9,921.2 10,027.3 10,151.4 14 U.S. government securities 2,546.8 2,806.7 3,148.4 3,475.5 2,958.5 3,027.7 3,148.4 3,206.5 3,258.8 3,371.1 3,475.5 15 State and local obligations 939.4 1,004.4 1,049.8 1,081.6 1,031.4 1,043.0 1,049.8 1,052.8 1,060.1 1,072.3 1,081.6 16 Corporate and foreign bonds 744.8 809.8 872.6r 948.3 842.3r 850.0r 872.6r 890.0 911.6 932.1 948.3 17 Residential mortgages 1,560.2 1,670.4 l.sso.o1 1,827.4 1,849.7 1,859.0 l^O-f^ 1,838.9 1,841.8 1,824.5 1,827.4 18 Other mortgages and loans 2,734.7 2,939.2 2,990.1r 2,897.8 2,966.2 2,975.4 2,990. lr 2,965.9 2,943.6 2,911.2 2,897.8 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 7,056.8r 7,605.0r 8,119.5r 8,552.5 7,925.9r 7,982.4r 8,119.5r 8,280.0 8,333.3 8,441.7 8,552.5 By holding institution 71 Commercial banks 2,476.2 2,643.9 2,765.1 2,851.2 2,709.5 2,739.0 2,765.1 2,778.6 22,,779933..11 22,,881155..33 22,,885511..22 ?? Savings institutions l,566.7r l,480.4r 1,332.r 1,187.3 l,418.5r l,378.3r l,332.1r 1,285.5 1,245.6 1,202.1 1,187.3 73 Insurance and pension funds 1,836.1 2,034.0 2,218.1 2,522.7 2,153.3 2,173.8 2,218.1 2,381.8 2,434.0 2,494.2 2,522.7 24 Other finance 1,177.9 1,446.7 1,804.2 1,991.3 1,644.5 1,691.3 1,804.2 1,834.2 1,860.6 1,930.1 1,991.3 By source of funds 25 Private domestic deposits and repurchase agreements 3,581.3 3,790.4 3,843.8 3,811.3 3,806.5 3,812.2r 3,843.8 3,858.2 33,,881188..77 33,,880000..77 33,,881111..33 76 Credit market debt 901.4 970.0 l,092.6r 1,094.3 l,093.4r l,078.5r l,092.6r 1,088.8 1,081.9 1,080.3 1,094.3 77 Other sources 2,574. lr 2,844.6r 3,183.r 3,646.9 3,026. lr 3,091.7r 3,183.1r 3,333.0 3,432.8 3,560.7 3,646.9 78 Foreign funds 71.6 62.1 86.1 68.5 63.5 86.6 86.1 84.8 63.7 68.5 68.5 29 U.S. Treasury balances 29.0 25.6 30.9 36.4 32.1 36.6 30.9 26.3 36.0 38.5 36.4 30 Insurance and pension reserves 1,723.2 1,908.2 2,067.7 2,429.1 1,983.0 2,018.6 2,067.7 2,278.2 2,324.1 2,387.2 2,429.1 31 Other, net 750.4r 848.8r 998.3R 1,112.8 947.4r 949.9r 998.3r 943.7 1,008.9 1,066.5 1,112.8 Private domestic nonfinancial investors 37 Credit market claims 2,217.8r 2,453.7r 22,,776677..00rr 2,693.2 2,689.3r 2,733.4r 22,,776677..00rr 2,656.0 2,669.7 22,,666655..99 22,,669933..22 33 U.S. government securities 1,050.7 1,169.0 1,297. lr 1,279.9 l,234.0r l,276.2r 1,297.lr 1,250.7 1,263.7 1,268.0 1,279.9 34 State and local obligations 486.7 549.4 574.2 581.9 568.9 573.8 574.2 568.0 576.0 583.1 581.9 35 Corporate and foreign bonds 50.91 62.5R 185.0r 144.8 199.8r 186.8r 185,0r 155.7 163.8 139.7 144.8 36 Open market paper 243.0 245.9 266.9r 225.7 266.5r 267.4r 266.9r 243.1 222.3 224.6 225.7 37 Other loans and mortgages 386.5 427.0 443.8 461.0 420.0 429.2 443.8 438.6 443.9 450.4 461.0 38 Deposits and currency 3,814.5 4,039.7 4,122.8r 4,119.4 4,066.6 4,076.1 4,122.8r 4,134.4 4,107.0 4,094.2 4,119.4 39 Currency 220.1 231.8 254.4 274.2 242.7 247.2 254.4 262.0 265.9 264.8 274.2 40 Checkable deposits 532.9 532.9 533.2r 579.6 513.91" 503.4r 533.2R 512.3 520.6 538.2 579.6 41 Small time and savings accounts 2,156.2 2,254.7 2,314.0r 2,325.2 2,287.8r 2,297.0r 2,314.0r 2,343.0 2,339.0 2,327.4 2,325.2 4? Money market fund shares 318.9 405.6 461.6 487.4 425.9 452.1 461.6 512.9 490.9 490.1 487.4 43 Large time deposits 390.3 399.3 357.5r 255.5 386.2r 373. r 357.5r 325.0 304.7 284.3 255.5 44 Security repurchase agreements 182.9 197.9 177.4 163.6 192.7 186.6 177.4 165.1 163.5 160.7 163.6 45 Deposits in foreign countries 13.1 17.6 24.6 33.9 17.5 16.8 24.6 14.3 22.5 28.7 33.9 46 Total of credit market instruments, deposits, and currency 6,032.3r 6,493.5r 6,889.8r 6,812.6 6,755.9r 6,809.5r 6,889.8r 6,790.4 6,776.7 6,760.0 6,812.6 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 25.3 48 Private financial intermediation (percent) 97.2 94.2 87.8 82.0 91.6 90.5 87.8 86.7 85.7 83.5 82.0 49 Total foreign funds 726.6 796.7 873.9 906.1 813.3 854.1 873.9 879.5 874.0 888.2 906.1 Corporate equities not included above 50 Total market value 3,619.8 4,374.8 4,084.6 5,210.3 4,400.7 3,824.0 4,084.6 4,631.4 4,665.6 4,932.5 5,210.3 51 Mutual fund shares 478.3 555.1 578.5 852.4 587.9 547.3 578.5 643.0 681.3 764.0 852.4 52 Other equities 3,141.6 3,819.7 3,506.2 4,358.0 3,812.8 3,276.8 3,506.2 3,988.4 3,984.3 4,168.4 4,358.0 53 Holdings by financial institutions 1,113.6 1,416.9 1,342.1 1,939.0 1,459.6 1,232.6 1,342.1 1,634.2 1,644.7 1,789.5 1,939.0 54 Other holdings 2,506.2 2,958.0 2,742.6 3,271.4 2,941.1 2,591.4 2,742.6 2,997.2 3,020.9 3,143.0 3,271.4 NOTES BY LINE NUMBER. 30. Excludes net investment of these reserves in corporate equities. 1. Line 1 of table 1.59. 31. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 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 • August 1992 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures Monthly data seasonally adjusted, 1987= 100, except as noted 1991 1992 MMeeaassuurree 11998899 11999900 11999911 Sept. Oct. Nov. Dec. Jan. Feb." Mar." Apr." May 1 Industrial production1 108.1 109.2 107.1 108.4 108.4 108.1 107.4 106.6 107.2 107.7 108.1 108.8 Market groupings 2 Products, total 108.6 110.1 108.1 108.9 109.0 109.0 108.4 107.5 108.1 108.6 109.0 109.7 3 Final, total 109.1 110.9 109.6 110.4 110.6 110.6 109.9 108.7 109.4 109.9 110.5 111.3 4 Consumer goods 106.7 107.3 107.5 109.4 109.7 110.0 109.1 108.1 108.8 109.5 109.8 110.4 5 Equipment 112.3 115.5 112.2 111.8 111.9 111.4 110.9 109.4 110.2 110.5 111.4 112.5 6 Intermediate 106.8 107.7 103.4 104.3 104.1 103.9 103.8 103.9 104.0 104.4 104.3 104.7 7 Materials 107.4 107.8 105.5 107.5 107.4 106.6 105.8 105.2 105.8 106.3 106.8 107.3 Industry groupings 8 Manufacturing 108.9 109.9 107.4 108.9 109.0 108.6 108.1 107.4 108.1 108.6 109.0 109.8 9 Capacity utilization, manufacturing (percent)2 83.9 82.3 78.2 78.8 78.7 78.2 7777..77 77.0 77.4 77.5 77.7 78.1 10 Construction contracts3 105.2r 95.3r 89.3r 90.0" 96.0" 82.0" 97.0" 95.0 100.0 96.0 93.0 86.0 11 Nonagricultural employment, total4 106.0 107.6 106.6 106.0" 106.0" 105.8" 105.8" 105.8" 105.8 105.9 106.1 106.1 12 Goods-producing, total 102.5 101.0 96.4 96. r 95.9" 95.6" 95.5" 95.2" 95.2 95.2 95.2 95.2 13 Manufacturing, total 102.2 100.5 96.9 96.8 96.7" 96.5" 96.3" 96.1" 96.1 96.1 96.1 96.1 14 Manufacturing, production worker 102.3 100.0 96.0 96.0 95.9 95.8" 95.6" 95.5" 95.6 95.7 95.7 95.7 15 Service-producing 107.1 109.7 109.9 109.1" 109.2" 109.1" 109.1" 109.1" 109.2 109.3 109.5 109.6 16 Personal income, total 115.2 123.1 127.2 128.2 128.4 128.3 129.6 129.3 130.6 131.2 131.3 n.a. 17 Wages and salary disbursements 114.4 121.1 124.2 125.4 125.2 125.4 126.2 125.5" 126.9 127.4 127.3 n.a. 18 Manufacturing 110.6 113.4 113.5 114.6 115.6 114.5 115.4 113.4 114.4 114.6 115.5 n.a. 19 Disposable personal income 115.2 123.4 128.2 129.3 129.7 129.5 130.9 130.7" 132.1 133.4 133.4 n.a. 20 Retail sales6 113.5r 118.6r 119.8r 120.3r 120.5" 120.1" 120.3" 123.0" 124.5 123.1 123.6 123.8 Prices7 21 Consumer (1982-84=100) 124.0 130.7 136.2 137.2 137.4 137.8 137.9 138.1 138.6 139.3 139.5 139.7 22 Producer finished goods (1982=100) 113.6 119.2 121.7 121.4 122.2 122.3 121.9 121.8" 121.9 122.0 122.2 123.1 1. A major revision of the industrial production index and the capacity 6. Based on U.S. Bureau of the Census data published in Survey of Current utilization rates was released in April 1990. See "Industrial Production: 1989 Business. Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April 7. Based on data not seasonally adjusted, as published in Monthly Labor 1990), pp. 187-204. Review. Seasonally adjusted data for changes in the price indexes can be obtained 2. Ratio of index of production to index of capacity. Based on data from the from the Bureau of Labor Statistics, U.S. Department of Labor. Federal Reserve, DRI McGraw-Hill, U.S. Department of Commerce, and other sources. NOTE. Basic data (not indexes) for series mentioned in notes 4, 5,and 6, and 3. Index of dollar value of total construction contracts, including residential, indexes for series mentioned in notes 3 and 7 can also be found in the Survey of nonresidential, and heavy engineering, from McGraw-Hill Information Systems Current Business. Co., F.W. Dodge Division. Figures for industrial production for the latest month are preliminary, and many 4. Based on data in Employment and Earnings (U.S. Department of Labor). figures for the three months preceding the latest month have been revised. See Series covers employees only, excluding personnel in the armed forces. "Recent Developments in Industrial Capacity and Utilization," Federal Reserve 5. Based on data in Survey of Current Business (U.S. Department of Com- Bulletin, vol. 76 (June 1990), pp. 411-35. merce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A45 2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data seasonally adjusted except as noted 1991r 1992 CCaatteeggoorryy 11998899 11999900 11999911 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 188,601 190,216 191,883 192,386 192,522 192,661 192,796 192,906 193,036 193,168 193,295 2 Labor force (including Armed Forces)1 126,077 126,954 127,421 127,605 127,444 127,675 128,083 128,309 128,604 128,830 129,148 3 Civilian labor force 123,869 124,787 125,303 125,508 125,374 125,619 126,046 126,287 126,590 126,830 127,160 4 Nonagricultural industries 114,142 114,728 114,644 113,663 113,500 113,545 113,951 113,811 114,155 114,465 114,478 5 Agriculture 3,199 3,186 3,233 3,204 3,272 3,183 3,166 3,232 3,194 3,209 3,178 Unemployment 6 Number 6,528 6,874 8,426 8,641 8,602 8,891 8,929 9,244 9,242 9,155 9,504 7 Rate (percent of civilian labor force) 5.3 5.5 6.7 6.9 6.9 7.1 7.1 7.3 7.3 7.2 7.5 8 Not in labor force 62,524 63,262 64,462 64,781 65,078 64,986 64,713 64,597 64,432 64,338 64,147 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 108,329 109,971 108,975 108,285 108,139 108,154 108,100 108,142 108,200 108,382 108,450 10 Manufacturing 19,442 19,111 18,427 18,388 18,361 18,329 18,283 18,290 18,278 18,283 18,273 11 Mining 693 711 697 674 667 663 657 653 651 646 641 12 Contract construction 5,187 5,136 4,696 4,642 4,585 4,592 4,587 4,582 4,603 4,602 4,609 13 Transportation and public utilities 5,644 5,826 5,823 5,766 5,761 5,758 5,746 5,753 5,754 5,749 5,748 14 Trade 25,770 25,843 25,412 25,215 25,161 25,133 25,128 25,146 25,089 25,168 25,120 1.5 Finance 6,695 6,739 6,707 6,665 6,666 6,670 6,665 6,673 6,675 6,683 6,689 16 Service 27,120 28,240 28,778 28,525 28,514 28,559 28,577 28,584 28,643 28,702 28,811 17 Government 17,779 18,322 18,434 18,410 18,424 18,450 18,457 18,461 18,507 18,549 18,559 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; excludes 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 • August 1992 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1991 1992 1991 1992 1991 1992 SSeerriieess Q2 Q3 Q4 Qir Q2 Q3 Q4 Q1 Q2 Q3 Q4 Qlr Output (1987=100) Capacity (percent of 1987 output) Capacity utilization rate (percent) 1 Total industry 106.4 108.1 107.9 107.2 134.5 135.3 136.2 137.0 79.1 79.9 79.3 78.2 2 Manufacturing 106.7 108.5 108.6 108.0 136.9 137.9 138.9 139.7 77.9 78.7 78.2 77.3 3 Primary processing 100.8 104.1 104.1 104.1 127.5 128.1 128.8 129.3 79.1 81.2 80.8 80.5 4 Advanced processing 109.4 110.6 110.7 109.9 141.3 142.4 143.5 144.6 77.4 77.7 77.1 76.0 5 Durable goods 106.7 108.1 107.7 106.6 140.9 141.8 142.8 143.7 75.7 76.2 75.4 74.2 6 Lumber and products 94.0 95.1 95.1 98.4 125.2 125.4 125.7 125.9 75.1 75.8 75.7 78.2 7 Primary metals 95.9 102.0 102.5 102.8 128.6 129.0 129.3 129.1 74.6 79.1 79.2 79.6 8 Iron and steel 92.8 100.3 103.2 104.7 133.5 134.0 134.5 134.1 69.5 74.8 76.7 78.1 9 Nonferrous 100.3 104.5 101.4 100.1 121.5 121.7 121.9 122.1 82.6 85.8 83.2 82.0 10 Nonelectrical machinery 123.5 123.5 122.7 122.1 159.5 161.2 162.8 164.3 77.4 76.6 75.4 74.3 11 Electrical machinery 110.6 111.2 110.4 110.4 144.0 145.3 146.6 147.9 76.8 76.5 75.3 74.7 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 99.3 137.9 138.7 139.6 140.4 77.2 75.9 73.7 70.8 14 Nondurable goods 106.7 109.1 109.7 109.8 131.9 132.9 133.8 134.8 80.9 82.1 82.0 81.5 15 Textile mill products 99.4 104.1 104.1 104.3 117.7 118.0 118.3 118.8 84.5 88.2 88.0 87.8 16 Paper and products 102.7 107.6 107.4 105.8 117.1 117.9 118.7 119.3 87.7 91.2 90.5 88.6 17 Chemicals and products 109.3 112.1 113.0 113.6 139.7 141.0 142.3 143.4 78.2 79.5 79.4 79.2 18 Plastics materials 115.6 125.4 126.2 124.4 139.2 142.6 146.1 148.7 83.0 87.9 86.4 83.7 19 Petroleum products 107.6 108.1 107.1 107.5 121.4 121.4 121.4 121.4 88.6 89.0 88.2 88.5 20 Mining 101.1 101.8 99.7 98.0 114.3 114.6 114.7 114.7 88.4 88.9 87.0 85.4 21 Utilities 109.6 110.4 109.4 107.1 128.4 128.8 129.2 129.5 85.3 85.7 84.7 82.7 22 Electric 114.4 115.2 111.6 109.7 124.3 124.7 125.2 125.6 92.1 92.4 89.1 87.3 Previous cycle2 Latest cycle3 1991 1991 1992r High Low High Low May Oct. Nov. Dec. Jan. Feb/ Mar.r Apr/ May" Capacity utilization rate (percent) 1 Total industry 89.2 72.6 87.3 71.8 79.1 79.8 79.3 78.7 78.0 78.3 78.5 78.7 79.0 2 Manufacturing 88.9 70.8 87.3 70.0 77.8 78.7 78.2 77.7 77.0 77.4 77.5 77.7 78.1 3 Primary processing 92.2 68.9 89.7 66.8 79.0 81.4 80.8 80.2 80.2 80.4 80.9 81.1 81.4 4 Advanced processing 87.5 72.0 86.3 71.4 77.3 77.6 77.1 76.6 75.7 76.1 76.2 76.3 76.8 5 Durable goods 88.8 68.5 86.9 65.0 75.7 75.9 75.5 74.8 73.8 74.5 74.4 74.7 75.5 6 Lumber and products 90.1 62.2 87.6 60.9 73.9 74.6 76.7 75.7 77.4 78.5 78.7 78.6 78.5 7 Primary metals 100.6 66.2 102.4 46.8 75.3 79.4 80.0 78.3 79.2 79.5 80.1 79.4 79.7 8 Iron and steel 105.8 66.6 110.4 38.3 70.4 76.2 78.5 75.5 78.1 77.4 78.9 77.8 77.5 9 Nonferrous 92.9 61.3 90.5 62.2 83.1 84.5 82.5 82.6 81.0 82.9 82.0 82.0 82.9 10 Nonelectrical machinery 96.4 74.5 92.1 64.9 77.4 76.1 75.4 74.7 74.1 74.2 74.7 75.0 76.3 11 Electrical machinery 87.8 63.8 89.4 71.1 76.8 75.1 75.5 75.2 74.6 74.8 74.6 74.7 75.3 12 Motor vehicles and parts .... 93.4 51.1 93.0 44.5 66.9 74.2 70.7 69.6 64.0 68.9 69.1 72.3 74.9 13 Aerospace and miscellaneous transportation equipment. 77.0 66.6 81.1 66.9 76.7 74.8 73.9 72.3 71.2 70.9 70.1 69.1 69.0 14 Nondurable goods 87.9 71.8 87.0 76.9 80.7 82.4 81.9 81.6 81.4 81.3 81.7 81.8 81.7 15 Textile mill products 92.0 60.4 91.7 73.8 84.3 89.2 88.2 86.5 86.9 88.2 88.5 88.5 88.9 16 Paper and products 96.9 69.0 94.2 82.0 86.5 92.1 89.4 90.0 89.9 87.6 88.3 89.1 88.1 17 Chemicals and products 87.9 69.9 85.1 70.1 78.2 80.0 79.4 78.9 78.7 79.1 79.8 80.0 80.2 18 102.0 50.6 90.9 63.4 84.5 89.5 87.2 82.5 83.1 8833..00 85.0 19 Petroleum products 96.7 81.1 89.5 68.2 88.6 87.3 87.9 89.5 87.8 8888..11 89.7 90.4 91.0 20 Mining 94.4 88.4 96.6 80.6 87.6 87.9 86.8 86.2 85.3 85.7 85.3 86.4 86.1 21 Utilities 95.6 82.5 88.3 76.2 86.7 84.8 85.9 83.4 82.6 82.2 83.4 83.1 82.7 22 Electric 99.0 82.7 88.3 78.7 93.7 89.7 90.0 87.7 87.1 86.8 88.0 87.6 87.1 1. Data in this table also appear in the Board's G.17 (419) monthly statistical 2. Monthly high, 1973; monthly low, 1975. release. For ordering address, see inside front cover. For a detailed description of 3. Monthly highs, 1978 through 1980; monthly lows, 1982. the series, see "Recent Developments in Industrial Capacity and Utilization," Federal Reserve Bulletin, vol. 76 (June 1990), pp. 411-35. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A47 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 1987 1991 1992 pro- 1991 Group por- avg. tion May June July Aug. Sept, Oct. Nov. Dec. Jan. Feb/ Mar/ Apr/ Mayp Index (1987 = 100) MAJOR MARKETS 1 Total Index 100.0 107.1 106.4 107.3 108.1 108.0 108.4 108.4 108.1 107.4 106.6 107.2 107.7 108.1 108.8 2 Products 60.8 108.1 107.7 108.6 108.7 108.5 108.9 109.0 109.0 108.4 107.5 108.1 108.6 109.0 109.7 4 5 3 Fin C a o l D n p u s r u r o a m d b u e le r c t g c s o o o n d su s, m t e o r t a g l oods 4 2 5 6 6 . . . 6 0 0 1 1 1 0 0 0 2 7 9 . . . 3 5 6 1 1 1 0 0 0 1 9 6 . . . 1 3 6 1 1 1 0 1 0 4 0 8 . . . 2 1 0 1 1 1 0 1 0 5 0 8 . . . 5 2 3 1 1 1 0 0 0 4 8 9 . . . 0 4 8 1 1 1 0 0 1 7 9 0 . . . 7 4 4 1 1 1 0 0 1 7 9 0 . . . 5 7 6 1 1 1 0 1 1 6 0 0 . . . 0 0 6 1 1 1 0 0 0 4 9 9 . . . 6 9 1 1 1 1 0 0 0 8 1 8 . . . 7 3 1 1 1 10 0 0 5 8 9 . . . 3 8 4 1 1 10 0 0 6 9 9 . . . 2 5 9 1 1 1 1 0 0 0 7 9 . . . 5 6 8 1 1 1 1 1 1 1 0 0 . . . 3 8 4 6 Automotive products 2.5 97.8 97.4 100.4 102.3 98.6 106.5 106.7 103.6 101.3 94.2 101.6 103.3 106.4 109.8 7 Autos and trucks 1.5 90.2 89.2 92.5 98.1 90.2 103.0 105.1 99.0 96.7 84.3 94.3 95.7 102.5 107.8 8 Autos, consumer .9 84.6 81.9 83.8 92.8 83.0 94.6 92.6 89.8 88.2 79.1 84.8 81.9 93.2 98.7 9 Trucks, consumer .6 99.6 101.6 107.1 106.9 102.2 117.1 126.1 114.5 111.0 93.0 110.2 118.8 118.3 123.3 10 Auto parts and allied goods.. 1.0 109.3 109.5 112.2 108.6 111.3 111.8 109.1 110.5 108.2 109.1 112.6 114.8 112.1 112.8 11 Other 3.1 105.8 104.1 107.3 108.1 108.3 108.7 108.1 108.0 107.2 106.9 108.3 108.5 108.7 111.5 12 Appliances, A/C, and TV.... .8 99.5 96.8 104.8 100.6 99.6 104.1 102.1 102.3 98.9 99.6 102.9 103.5 101.2 107.8 13 Carpeting and furniture .9 99.4 96.9 99.2 103.1 103.9 101.8 101.8 101.6 101.5 101.1 102.4 102.5 104.3 106.1 14 Miscellaneous home goods .. 1.4 113.4 112.8 113.8 115.5 115.9 115.6 115.6 115.2 115.5 114.7 115.0 115.2 115.7 117.1 15 Nondurable consumer goods 20.4 109.0 108.1 109.0 109.0 109.6 109.8 110.3 111.1 110.3 110.0 109.8 110.4 110.4 110.3 16 Foods and tobacco 9.1 106.7 106.2 106.9 106.9 107.1 107.8 107.8 108.1 107.0 107.3 107.4 108.0 107.5 107.4 17 Clothing 2.6 93.5 92.0 93.9 94.3 94.8 95.2 96.3 96.5 96.2 95.0 95.2 95.2 95.1 95.5 18 Chemical products 3.5 115.8 113.9 114.3 115.4 117.4 117.3 117.0 117.9 118.0 118.1 118.3 119.4 120.5 120.7 19 Paper products 2.5 123.6 121.8 123.3 122.1 122.6 124.8 125.6 126.4 126.8 126.8 124.7 124.6 125.1 125.2 20 Energy 2.7 108.5 109.0 110.0 109.4 109.5 106.7 108.5 112.0 109.3 106.8 106.4 107.7 107.6 106.6 21 Fuels .7 103.5 103.6 104.9 105.2 104.0 104.4 103.5 103.6 104.3 103.8 103.5 103.7 104.7 103.6 22 Residential utilities 2.0 110.4 111.0 111.9 110.9 111.5 107.6 110.3 115.1 111.2 108.0 107.5 109.2 108.7 107.7 23 Equipment 20.0 112.2 112.7 112.8 112.8 111.6 111.8 111.9 111.4 110.9 109.4 110.2 110.5 111.4 112.5 24 Business equipment 13.9 121.5 121.7 121.9 122.5 121.3 122.2 122.3 121.8 121.4 119.9 121.0 121.7 122.9 124.5 25 Information processing and related . 5.6 131.5 131.8 130.9 131.1 130.3 130.3 131.7 133.4 134.0 134.1 134.6 136.0 137.5 137.8 26 Office and computing 1.9 155.5 155.6 154.0 156.0 153.1 152.2 156.0 157.8 159.1 160.6 162.4 164.9 167.1 168.9 27 Industrial 4.0 108.0 109.3 109.1 109.0 108.6 108.2 106.8 104.2 102.3 100.7 101.3 101.3 101.6 104.8 28 Transit 2.5 126.8 125.9 128.0 131.2 126.7 132.7 133.1 130.5 129.5 124.2 129.2 128.9 131.8 134.1 29 Autos and trucks 1.2 88.6 87.9 90.8 96.6 86.2 99.3 101.1 96.5 96.1 84.9 94.7 95.0 101.3 105.6 30 Other 1.9 113.6 113.0 114.8 114.0 114.8 114.2 113.6 113.8 114.1 113.1 112.2 113.2 113.9 114.5 31 Defense and space equipment 5.4 91.1 91.5 91.0 90.0 89.8 89.1 89.1 88.8 88.1 86.7 86.2 85.6 85.1 85.3 32 Oil and gas well drilling .6 93.3 101.3 103.0 97.8 86.7 80.1 79.0 78.1 75.8 71.8 73.9 76.2 79.2 79.3 33 Manufactured homes .2 85.5 86.6 90.8 86.5 90.3 86.2 86.3 87.0 87.9 98.4 99.7 98.7 99.8 100.5 34 Intermediate products, total 14.7 103.4 102.7 104.0 104.0 104.4 104.3 104.1 103.9 103.8 103.9 104.0 104.4 104.3 104.7 35 Construction supplies 6.0 96.0 95.8 97.4 96.9 96.7 96.5 95.4 95.9 95.0 95.5 96.0 96.6 96.9 97.3 36 Business supplies 8.7 108.4 107.5 108.5 109.0 109.7 109.7 110.1 109.4 110.0 109.9 109.6 109.9 109.5 109.8 37 Materials 39.2 105.5 104.5 105.4 107.0 107.2 107.5 107.4 106.6 105.8 105.2 105.8 106.3 106.8 107.3 38 Durable goods materials 19.4 107.1 106.2 106.7 108.2 109.1 109.3 108.8 108.6 108.1 107.0 108.1 108.3 108.7 109.9 39 Durable consumer parts 4.2 96.4 95.5 97.3 100.2 100.1 101.3 101.6 100.5 97.0 95.3 97.1 97.8 99.4 101.6 40 Equipment parts 7.3 114.4 114.8 113.6 113.5 114.3 113.9 113.6 113.7 114.2 114.1 115.2 115.1 115.2 116.4 41 Other 7.9 106.0 103.8 105.3 107.5 109.0 109.3 108.2 108.3 108.4 106.7 107.5 107.7 107.8 108.3 42 Basic metal materials 2.8 106.0 103.0 105.9 108.8 110.2 109.5 107.7 108.1 108.1 105.1 107.3 107.0 106.3 105.8 43 Nondurable goods materials 9.0 105.9 103.7 104.9 108.1 107.8 108.3 109.6 107.7 107.1 107.3 107.1 108.8 109.0 109.1 44 Textile materials 1.2 97.0 96.8 98.1 101.4 101.5 99.5 101.8 99.9 98.5 98.9 101.5 101.7 101.8 102.5 45 Pulp and paper materials 1.9 106.9 101.5 106.9 110.3 108.2 110.4 112.0 108.6 109.6 107.4 106.8 107.7 109.0 106.5 46 Chemical materials 3.8 106.1 103.9 103.9 107.7 107.9 108.2 109.9 108.3 107.0 107.6 106.6 109.3 109.2 110.0 47 Other 2.1 109.7 109.2 108.6 110.5 110.9 111.3 111.2 110.1 109.7 111.2 111.2 112.7 112.6 113.2 48 Energy materials 10.9 102.3 102.4 103.4 104.1 103.3 103.6 103.1 102.2 100.4 100.4 100.5 100.5 101.4 101.2 49 Primary energy 7.2 102.4 101.2 104.7 106.2 104.5 103.8 102.8 100.9 100.4 100.5 100.6 98.6 100.1 99.8 50 Converted fuel materials 3.7 102.0 104.7 101.0 100.1 101.0 103.4 103.8 104.5 100.5 100.2 100.4 104.3 103.8 103.8 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.3 107.6 106.9 107.8 108.4 108.5 108.6 108.5 108.3 107.7 107.3 107.6 108.0 108.3 108.8 52 Total excluding motor vehicles and parts.. 95.3 107.9 107.3 108.1 108.6 108.8 108.8 108.8 108.7 108.0 107.6 107.8 108.3 108.6 109.1 53 Total excluding office and computing machines 97.5 105.8 105.2 106.2 106.9 106.8 107.3 107.2 106.8 106.1 105.3 105.8 106.2 106.6 107.2 54 Consumer goods excluding autos and trucks 24.5 108.6 107.6 108.9 108.9 109.5 109.8 109.9 110.7 109.8 109.6 109.7 110.3 110.3 110.6 55 Consumer goods excluding energy 23.3 107.4 106.3 107.7 108.1 108.3 109.7 109.8 109.8 109.1 108.3 109.1 109.7 110.1 110.9 56 Business equipment excluding autos and trucks 12.7 124.8 125.0 125.0 125.0 124.7 124.4 124.4 124.3 123.8r 123.3r 123.6 124.3 125.1 126.3 57 Business equipment excluding office and computing equipment 12.0 116.0 116.3 116.7 117.0 116.2 117.3 116.9 116.0 115.3 113.3 114.3 114.7 115.8 117.3 58 Materials excluding energy 28.4 106.7 105.4 106.1 108.2 108.7 109.0 109.1 108.3 107.8 107.1 107.8 108.5 108.8 109.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • August 1992 2.13—Continued 1987 1991 1992 SIC pro- 1991 Group code por- avg. tion May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb/ Mar.r Apr.r Mayp Index (1987 = 100) MAJOR INDUSTRIES 1 Total index 100.0 107.1 106.4 107.3 108.1 108.0 108.4 108.4 108.1 107.4 106.6 107.2 107.7 108.1 108.8 2 Manufacturing 84.4 107.4 106.6 107.5 108.3 108.4 108.9 109.0 108.6 108.1 107.4 108.1 108.6 109.0 109.8 3 Primary processing 26.7 102.4 100.7 102.1 103.7 104.1 104.4 104.7 104.1 103.5 103.6 103.9 104.7 105.1 105.6 4 Advanced processing 57.7 109.8 109.3 109.9 110.5 110.3 111.0 111.0 110.7 110.3 109.2 110.0 110.4 110.9 111.8 5 Durable goods 47.3 107.1 106.7 107.3 108.1 107.8 108.4 108.2 107.8 107.1 105.8 107.0 107.1 107.7 109.1 6 Lumber and products ... "24 2.0 94.2 92.5 96.7 94.8 95.3 95.2 93.8 96.4 95.2 97.4 98.8 99.1 99.1 99.0 7 Furniture and fixtures ... 25 1.4 99.1 98.5 99.4 100.5 101.3 101.2 100.5 99.9 100.6 98.7 98.1 99.0 101.0 102.4 8 Clay, glass, and stone products 32 2.5 94.9 95.1 95.0 95.8 95.5 94.4 94.4 92.8 93.0 92.8 94.6 94.9 95.3 96.6 9 Primary metals 33 3.3 99.5 96.9 96.4 101.2 102.6 102.3 102.6 103.5 101.3 102.5 102.7 103.2 102.1 102.2 10 Iron and steel 331,2 1.9 98.0 94.0 92.9 99.5 100.6 100.8 102.4 105.6 101.7 105.0 103.7 105.4 103.5 102.9 11 Raw steel .1 97.3 88.9 94.0 102.6 102.4 100.9 101.3 99.1 97.6 103.3 102.7 98.8 99.9 98.7 12 Nonferrous 333-6,9 1.4 101.5 101.0 101.5 103.5 105.5 104.4 102.9 100.5 100.8 98.9 101.2 100.1 100.2 101.3 13 Fabricated metal products 34 5.4 100.4 99.1 99.8 100.9 101.4 101.9 101.9 101.8 101.2 99.7 100.5 99.9 100.4 101.8 14 Nonelectrical machinery. 35 8.6 123.5 123.6 123.4 123.9 123.3 123.1 123.5 122.8 121.9 121.4 121.9 123.1 124.0 126.6 15 Office and computing machines 357 2.5 155.5 155.6 154.0 156.0 153.0 152.2 155.9 157.8 159.1 160.5 162.4 164.9 167.1 169.0 16 Electrical machinery 36 8.6 110.1 110.6 111.5 111.0 111.5 111.0 109.8 110.7 110.6 110.0 110.7 110.7 111.0 112.3 17 Transportation equipment 37 9.8 98.6 98.2 99.7 101.3 99.0 102.2 102.4 99.7 98.0 93.8 96.8 96.5 97.9 99.7 18 Motor vehicles and parts 371 4.7 90.4 89.8 92.5 96.7 91.6 99.5 100.4 95.9 94.6 87.1 93.8 94.2 98.7 102.4 19 Autos and light trucks 2.3 89.4 88.2 91.2 97.3 89.1 101.8 103.2 97.6 95.5 83.5 92.9 93.7 101.1 106.5 20 Aerospace and miscellaneous transportation equipment.. 372-6,9 5.1 106.0 105.8 106.1 105.4 105.6 104.6 104.3 103.1 101.2 99.8 99.6 98.6 97.2 97.2 21 Instruments 38 3.3 118.2 118.2 117.3 116.5 116.9 118.1 118.2 118.7 119.0 118.3 118.6 118.6 119.0 118.9 22 Miscellaneous 39 1.2 119.3 118.7 119.8 121.6 123.2 121.5 120.6 120.7 121.0 121.2 120.0 120.3 119.5 119.9 23 Nondurable goods 37.2 107.9 106.5 107.6 108.6 109.0 109.6 110.1 109.6 109.5 109.5 109.6 110.3 110.7 110.8 24 Foods "20 8.8 108.6 107.8 108.6 108.3 108.7 109.5 109.4 110.1 109.6 109.2 109.6 110.2 109.9 109.8 25 Tobacco products 21 1.0 99.7 98.7 99.4 102.6 103.1 102.7 102.2 97.7 94.7 98.8 99.4 101.6 99.2 98.4 26 Textile mill products 22 1.8 100.5 99.2 101.7 104.2 104.7 103.2 105.5 104.4 102.5 103.1 104.7 105.2 105.4 106.0 27 Apparel products 23 2.4 96.2 95.2 96.2 97.8 98.3 98.1 98.7 98.8 99.0 97.5 97.7 97.9 97.9 98.4 28 Paper and products 26 3.6 105.1 101.3 105.3 108.1 106.5 108.0 109.0 106.1 107.0 107.1 104.6 105.6 106.7 105.7 29 Printing and publishing .. 27 6.4 112.3 110.6 111.2 111.9 112.3 113.3 114.4 114.2 114.5 114.8 114.4 114.1 114.4 114.5 30 Chemicals and products . 28 8.6 110.9 109.2 109.6 111.5 112.3 112.6 113.5 113.0 112.6 112.7 113.4 114.6 115.2 115.7 31 Petroleum products 29 1.3 107.5 107.5 109.6 108.3 107.3 108.6 106.0 106.7 108.6 106.6 106.9 109.0 109.8 110.6 32 Rubber and plastic products 30 3.0 110.0 109.2 110.5 110.1 112.6 113.8 113.2 112.6 113.0 113.2 114.0 115.5 117.1 117.5 33 Leather and products ... 31 .3 88.1 89.5 90.9 91.0 87.1 85.8 83.9 84.3 83.2 83.0 81.4 82.4 83.1 82.5 34 Mining 7.9 101.1 100.2 102.1 102.7 101.3 101.4 100.7 99.6 98.8 97.8 98.4 97.9 99.1 98.8 35 Metal "lO .3 150.2 148.0 157.0 153.0 155.5 153.1 146.5 151.5 154.0 144.2 152.9 152.3 152.4 149.8 36 Coal 11,12 1.2 109.2 103.4 110.2 116.0 110.8 110.1 107.9 108.4 107.6 107.3 107.9 103.0 104.0 107.0 37 Oil and gas extraction 13 5.7 95.8 96.0 96.9 96.4 95.7 96.0 96.0 94.1 93.0 92.4 92.7 92.7 94.3 93.4 38 Stone and earth minerals .. 14 .7 108.1 107.5 106.4 107.8 107.0 107.3 105.9 105.8 106.4 104.8 103.5 107.4 106.1 105.7 39 Utilities 7.6 109.2 111.4 111.5 110.9 110.7 109.7 109.4 111.0 107.9 106.8 106.4 108.1 107.7 107.3 40 Electric 49L3PT 6.0 112.8 116.4 117.1 116.6 115.6 113.4 112.2 112.7 109.9 109.3 109.0 110.7 110.3 109.8 41 Gas 492,3PT 1.6 96.0 92.8 90.7 89.7 92.4 95.8 98.9 104.7 100.5 97.5 96.9 98.6 98.2 98.2 SPECIAL AGGREGATES 42 Manufacturing excluding motor vehicles and parts 79.8 108.4 107.6 108.3 109.0 109.3 109.5 109.5 109.3 108.9 108.6 108.9 109.4 109.6 110.2 43 Manufacturing excluding office and computing machines 82.0 106.0 105.1 106.1 106.9 107.0 107.6 107.6 107.1 106.6 105.8 106.5 106.9 107.3 108.0 Gross va lue (billions of 1982 dollars, annu il rates) MAJOR MARKETS 44 Products, total 1,734.8 1,880.0 1,875.7 1,890.5 1,895.3 1,885.5 1,901.8 1,911.4 1,904.9 1,888.9 1,869.5 1,889.7 1,904.1 1,912.6 1,928.4 45 Final 1,350.9 1,481.8 1,478.1 1,490.5 1,496.1 1,484.5 1,501.5 1,510.0 1,504.1 1,488.0 1,468.7 1,490.8 1,502.7 1,512.2 1,526.6 46 Consumer goods .. 833.4 879.8 874.4 884.2 888.3 882.7 898.3 902.4 902.2 894.5 877.6 890.2 896.9 901.3 907.6 47 Equipment 517.5 602.0 603.7 606.2 607.8 601.8 603.3 607.6 601.8 593.5 591.1 600.6 605.7 610.9 619.0 48 Intermediate 384.0 398.2 397.6 400.1 399.2 401.0 400.3 401.4 400.8 401.0 400.7 398.9 401.5 400.4 401.8 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 19k). 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 July Aug. Sept. Oct. Nov. Dec. Jan. Feb/ Mar/ Apr. Private residential real estate activity (thousands of units, except as noted) NEW UNITS 1,339 1,111 949 971 940 974 994 979 1,073 1,106 1,146 1,094 1,058 932 794 754 782 764 782 788 792 873 913 946 907 873 407 317 195 189 176 192 206 187 200 193 200 187 185 4 Started 1,376 1,193 1,014 1,053 1,053 1,020 1,085 1,085 1,118 1,180 1,257 1,340 1,108 1,003 895 840 881 881 864 887 907 972 989 1,109 1,068 952 6 Two-or-more-family 373 298 174 172 172 156 198 178 146 191 148 272 156 7 Under construction at end of period1.. 850 711 606 652 648 632 631 633 633 640 629 662 667 535 449 434 452 455 452 451 454 458 466 464 487 493 9 Two-or-more-family 315 262 173 200 193 180 180 179 175 174 165 175 174 10 Completed 1,423 1,308 1,091 1,065 1,051 1,193 1,073 1,021 1,021 1,043 1,097 1,121 1,026 1,026 966 838 809 821 870 879 824 851 838 908 %9 863 12 Two-or-more-family 3% 342 253 256 230 323 194 197 170 205 189 152 163 13 Mobile homes shipped 198 188 171 175 175 172 171 171 176 192 197 197 199 Merchant builder activity in one-family units 650 535 507 505 522 499 526 557788 557788 666677rr 662222 552233 553300 15 Number for sale at end of period1 ... 365 321 283 295 292 292 289 286 283 281 269 277 274 Price of units sold (thousands of dollars)2 120.4 122.3 120.0 120.0 120.8 120.0 122.6 118.5 122.0 120.0" 117.0 119.9 119.9 17 Average 148.3 149.0 147.0 148.2 141.8 147.3 147.4 141.7 143.0 144.2*" 144.6 146.9 146.8 EXISTING UNITS (one-family) 18 Number sold 3,346 3,211 3,219 3,260 3,190 3,120 3,150 3,230 3,310 3,220 3,490 3,510 3,490 Price of units sold (thousands of dollars) 19 Median 92.9 95.2 99.7 103.4 102.0 100.3 99.1 97.9 100.3 102.4 102.8 104.0 103.3 20 Average 118.0 118.3 127.4 132.2 130.9 127.8 126.4 124.9 127.3 130.5 128.8 130.2 130.6 Value of new construction (millions of dollars)3 CONSTRUCTION 21 Total put in place 443,720 446,433 403,955 398,409 403,151 406,983 408,779 405,482 400,825 409,731 412,449 419,976 418,828 22 Private 345,416 337,776 295,187 290,299 293,402 2%,621 2%,306 293,693 291,202 2%, 186 297,674 302,592 304,448 2 2 2 2 2 2 3 4 5 6 7 8 R N e o O C I P s n n i u o t r d d h b e m e u e l s n i s m r i c t t d r i b e e a u i r u a l n t c l i i t i l l i d a i b a t l i u i l n e , i b g s l t u d s o a i i t l n n a d g d l i s n o g t s h er 1 1 2 6 4 4 9 1 0 3 5 8 6 9 , , , , , , 4 2 8 5 6 4 1 7 6 5 8 % 2 4 5 1 3 1 1 2 6 4 2 8 5 2 3 6 1 2 4 , , , , , , 8 8 6 5 8 9 6 4 1 9 5 2 6 9 4 1 6 0 1 1 4 2 4 2 6 3 7 1 4 0 0 4 , , , , , , 9 7 1 7 5 6 9 3 6 0 9 2 7 2 1 7 0 6 1 1 4 2 4 2 5 3 7 0 3 0 8 2 , , , , , , 1 8 5 6 0 2 4 8 5 7 3 6 4 5 7 4 9 0 1 1 2 4 4 6 3 1 6 0 3 2 0 9 , , , , , , 3 4 8 6 8 9 4 1 0 7 0 7 1 8 2 0 0 3 1 1 4 2 2 4 3 6 5 0 3 0 0 6 , , , , , , 5 3 5 6 0 5 8 2 1 1 4 7 9 1 8 5 3 8 1 1 4 2 4 2 2 6 4 1 2 0 9 6 , , , , , , 5 5 5 6 3 9 7 8 7 8 5 1 3 0 7 7 7 9 1 1 2 4 4 2 6 2 1 2 3 0 6 7 , , , , , , 6 1 0 3 4 2 6 5 3 7 6 1 5 5 1 4 8 9 1 1 4 2 4 2 2 6 0 2 1 0 5 5 , , , , , , 4 7 8 7 8 3 7 6 1 2 7 7 2 3 9 4 0 8 1 1 2 3 4 2 2 7 9 2 3 0 6 0 , , , , , , 7 4 2 7 1 0 3 2 1 1 4 7 1 4 1 4 8 2 1 1 4 4 2 2 7 2 0 3 2 0 0 7 , , , , , , 9 2 3 8 2 4 3 8 4 5 6 2 1 3 5 4 0 1 1 1 2 4 4 2 2 7 1 3 3 1 8 3 , , , , , , 0 0 1 5 7 8 5 1 9 3 9 0 2 8 2 0 2 0 1 1 4 2 3 2 7 2 3 2 9 1 6 7 , , , , , , 6 6 9 3 8 5 2 5 1 7 7 9 1 0 6 1 7 0 29 Public 98,303 108,655 108,769 108,110 109,749 110,361 112,472 111,790 109,624 113,545 114,775 117,384 114,379 30 Military 3,520 2,734 1,880 1,759 1,783 2,261 1,181 1,829 2,671 2,039 2,206 2,548 2,338 31 Highway 28,171 30,595 29,012 28,854 30,047 28,610 29,038 28,737 28,991 29,151 31,728 29,436 29,880 32 Conservation and development... 4,989 4,718 5,331 4,688 4,901 4,226 6,095 6,812 5,412 5,346 5,783 6,399 5,363 33 Other 61,623 70,608 72,546 72,809 73,018 75,264 76,158 74,412 72,550 77,009 75,058 79,001 76,798 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 • August 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 Change from 1 month earlier months earlier (annual rate) IIInnndddeeexxx llleeevvveeelll,,, IIIttteeemmm 1991 1992 1992 MMMaaayyy 11999911 11999922 111999999222''' MMaayy MMaayy June Sept. Dec. Mar. Jan.r Feb.r Mar. Apr. May CONSUMER PRICES2 (1982-84=100) 1 AU items 5.0 3.0 3.0 3.0 3.2 3.5 .1 .3 .5 .2 .1 139.7 2 Food 4.2 .4 4.8 -2.3 2.7 1.5 -.4 .3 .5 -.1 -.4 137.4 3 Energy items 5.6 .3 -.8 1.2 3.6 -6.9 -1.5 -.9 .6 .4 .6 102.4 4 All items less food and energy 5.1 3.8 3.2 4.6 3.1 4.8 .3 .4 .5 .3 .2 146.7 5 Commodities 4.1 3.0 2.2 4.4 .6 5.3 .2 .6 .5 .2 .4 132.6 6 Services 5.5 4.2 3.3 4.6 4.3 4.8 .4 .3 .5 .3 .1 154.8 PRODUCER PRICES (1982=100) 7 Finished goods 3.5 1.1 .7 1.3 1.0 .7 -.2 .1 .2 .2 .4 123.1 8 Consumer foods 1.0 -2.3 -.6 -4.4 -1.0 .7 -.4 1.1 -.5 -.3 -.4 122.9 9 Consumer energy 13.9 -.5 -1.5 3.7 -.5 -7.0 -2.8 -.1 1.2 .5 .9 77.6 10 Other consumer goods 3.7 3.3 1.8 3.6 2.4 3.0 .6 -.1 .2 .4 .7 137.3 11 Capital equipment 3.5 2.0 1.6 1.3 1.9 1.9 .5 -.2 .2 .2 .5 129.0 Intermediate materials 12 Excluding foods and feeds 1.2 .4 -1.0 .4 -1.7 .0 -.6 .6 .0 .1 .4 114.6 13 Excluding energy .6 .4 -.7 -1.3 .0 1.7 -.1 .3 .2 .0 .1 121.9 Crude materials 14 Foods -7.1 -.5 -8.6 -6.6 -4.9 12.6 1.8 2.4 -1.2 -1.4 .9 108.2 15 Energy 6.3 -2.3 .5 -.5 5.3 -21.2 -4.6 2.3 -3.4 2.7 2.5 77.4 16 Other -5.3 -1.7 -14.1 -4.9 -5.9 13.6 -.2 1.1 2.2 .2 .9 129.2 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 1991 1992 Account 11998899 11999900 11999911 QL Q2 Q3 Q4 QLR GROSS DOMESTIC PRODUCT 1 Total 5,244.0 5,513.8 5,672.6 5,589.0 5,652.6 5,709.2 5,739.7 5,817.5 By source 4 5 2 3 Pe N D S rs e o u o r n r n v a d a i b l c u l e r e c s a o g b n o le s o u d g m s o p o t d i s o n expenditures 3 1 1 , , , 4 5 9 1 5 1 1 4 9 7 1 6 . . . . 8 9 2 9 3 2 1 , . . 0 7 4 2 5 6 4 1 5 9 2 7 . . . . 9 0 6 7 2 3 1 , , , 1 8 4 2 8 9 4 5 9 5 1 1 . . . . 1 2 9 9 2 3 1 , , , 1 4 8 2 4 4 2 4 0 0 7 6 . . . . 7 7 7 3 3 2 1 . . , 4 8 1 2 4 6 7 5 8 0 5 2 . . . . 5 0 6 9 3 2 1 , , , 2 9 4 2 0 1 5 5 6 2 6 7 . . . . 1 9 4 4 2 3 1 . , . 2 9 4 2 4 4 4 5 5 3 7 1 . . . . 2 7 1 3 4 2 1 , , , 0 2 4 2 2 6 8 7 2 8 1 3 . . . . 6 2 0 3 6 Gross private domestic investment 837.6 802.6 726.7 709.3 708.8 740.9 747.9 726.0 7 Fixed investment 801.6 802.7 745.2 748.4 745.8 744.5 742.0 749.4 8 Nonresidential 570.7 587.0 550.1 560.0 554.6 546.8 539.0 540.5 9 Structures 193.1 198.7 174.6 184.0 180.0 169.0 165.2 164.3 10 Producers' durable equipment 377.6 388.3 375.5 375.9 374.7 377.8 373.8 376.2 11 Residential structures 230.9 215.7 195.1 188.4 191.2 197.7 203.0 208.9 12 Change in business inventories 36.0 .0 -18.5 -39.2 -37.1 -3.6 6.0 -23.3 13 Nonfarm 35.5 -2.0 -15.0 -35.0 -34.0 -3.2 12.1 -20.4 14 Net exports of goods and services -82.9 -74.4 -30.7 -36.8 -17.2 -37.3 -31.4 -27.5 15 Exports 504.9 550.4 591.3 565.9 589.8 597.0 612.5 612.3 16 Imports 587.8 624.8 622.0 602.7 607.0 634.3 643.8 639.8 17 Government purchases of goods and services .. 971.4 1,042.9 1,087.5 1,088.8 1,092.5 1,089.1 1,079.5 1,096.5 18 Federal 401.4 424.9 445.1 451.5 452.1 444.9 432.0 441.2 19 State and local 570.0 618.0 642.4 637.3 640.4 644.2 647.5 655.3 By major type of product 20 Final sales, total 5.208.1 5,513.8 5.691.1 5,628.2 5.689.6 5,712.8 5,733.8 5,840.9 21 Goods 2,062.1 2,167.6 2,211.7 2,208.6 2,223.2 2,214.1 2,200.8 2,247.5 22 Durable 892.9 934.7 926.5 916.4 939.5 929.4 920.5 940.6 23 Nondurable 1.169.2 1,233.0 1.285.2 1,292.1 1.283.7 1,284.7 1,280.3 1,306.9 24 Services 2,634.7 2,834.0 3,012.9 2,951.7 2,999.0 3,035.1 3,065.7 3,116.7 25 Structures 511.3 512.2 466.5 467.9 467.4 463.5 467.3 476.7 26 Change in business inventories 36.0 .0 -18.5 -39.2 -37.1 -3.6 6.0 -23.3 27 Durable goods 26.9 -7.0 -25.2 -43.5 -33.5 -9.2 -14.5 -31.1 28 Nondurable goods 9.1 7.0 6.7 4.3 -3.6 5.6 20.4 7.7 MEMO 4,836.9 4,884.9 4,848.8 4,824.0 4,840.7 4,862.7 4,868.0 4,896.9 29 Total GDP in 1987 dollars NATIONAL INCOME 4,244.7 4,459.6 4,542.2 4,489.8 4,530.8 4,559.8 4,588.3 4,652.0 30 Total 3,101.3 3,290.3 3,388.2 3,342.9 3,377.4 3.405.3 3,427.4 3,459.2 31 Compensation of employees 2,585.8 2,738.9 2,808.2 2,771.1 2,800.2 2.822.4 2,839.3 2,862.5 32 Wages and salaries 478.6 514.0 540.5 536.0 540.1 541.8 544.2 552.4 33 Government and government enterprises .. 2,107.2 2,224.9 2,267.7 2,235.1 2,260.1 2,280.6 2,295.1 2,310.1 34 Other 515.5 551.4 580.0 571.8 577.2 582.9 588.1 596.8 35 Supplement to wages and salaries 261.7 277.3 289.4 287.5 288.7 290.2 291.1 295.7 36 Employer contributions for social insurance 253.7 274.0 290.6 284.2 288.5 292.8 297.0 301.1 37 Other labor income 38 Proprietors' income1 347.0 373.2 379.7 364.2 380.0 382.5 392.0 402.5 39 Business and professional1 305.5 330.7 344.5 331.4 340.4 350.5 355.9 366.2 40 Farm1 41.4 42.5 35.1 32.8 39.6 32.0 36.1 36.2 41 Rental income of persons2 -7.9 -12.9 -12.7 -11.9 -11.7 -14.2 -13.1 -10.9 42 Corporate profits1 351.7 319.0 306.8 302.1 303.5 306.1 315.6 347.0 43 Profits before tax3 344.5 332.3 312.4 309.1 306.2 318.2 316.1 339.8 44 Inventory valuation adjustment -17.5 -14.2 3.1 6.7 9.9 -4.8 .7 -2.9 45 Capital consumption adjustment 24.7 .8 -8.7 -13.6 -12.6 -7.3 -1.3 10.2 46 Net interest 452.6 490.1 480.2 492.6 481.6 480.1 466.5 454.2 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 • August 1992 2.17 PERSONAL INCOME AND SAVING Billions of current dollars, except as noted; quarterly data at seasonally adjusted annual rates 1991 1992 AAccccoouunntt 11998899 11999900 11999911 QL Q2 Q3 Q4 QLR PERSONAL INCOME AND SAVING 1 Total personal income 4,380.2 4,679.8 4,834.4 4,768.0 4,821.1 4,853.3 4,895.3 4,956.2 2 Wage and salary disbursements 2,585.8 2,738.9 2,808.3 2,770.9 2,800.6 2,822.4 2,839.3 2,862.5 3 Commodity-producing industries 723.8 745.4 738.7 733.4 735.2 742.3 744.1 738.2 4 Manufacturing 542.1 555.8 556.5 549.3 552.3 559.9 564.3 559.4 5 Distributive industries 607.5 634.6 641.2 635.1 642.0 644.0 643.9 648.2 6 Service industries 775.9 845.0 887.8 866.5 883.0 894.4 907.2 923.8 7 Government and government enterprises 478.6 514.0 540.6 535.8 540.5 541.8 544.2 552.4 8 Other labor income 253.7 274.0 290.6 284.2 288.5 292.8 297.0 301.1 9 Proprietors' income1 347.0 373.2 379.7 364.2 380.0 382.5 392.0 402.5 10 Business and professional1 305.5 330.7 344.5 331.4 340.4 350.5 355.9 366.2 11 Farm1 41.4 42.5 35.1 32.8 39.6 32.0 36.1 36.2 12 Rental income of persons -7.9 -12.9 -12.7 -11.9 -11.7 -14.2 -13.1 -10.9 13 Dividends 119.8 124.8 128.5 128.7 127.4 128.7 129.4 129.4 14 Personal interest income 669.0 721.3 718.6 730.1 721.8 716.7 705.7 689.1 15 Transfer payments 624.4 684.9 759.5 737.2 751.5 763.7 785.4 827.7 16 Old-age survivors, disability, and health insurance benefits ... 325.1 352.0 380.0 373.1 377.2 381.7 388.1 403.5 17 LESS: Personal contributions for social insurance 211.7 224.3 238.0 235.4 237.0 239.3 240.4 245.0 18 EQUALS: Personal income 4,380.2 4,679.8 4,834.4 4,768.0 4,821.1 4,853.3 4,895.3 4,956.2 19 LESS: Personal tax and nontax payments 591.7 621.0 616.1 617.1 613.6 615.1 618.4 611.1 20 EQUALS: Disposable personal income 3,788.6 4,058.8 4,218.4 4,151.0 4,207.5 4,238.2 4,276.8 4,345.1 21 LESS: Personal outlays 3,622.4 3,853.1 3,999.1 3,938.4 3,978.7 4,025.7 4,053.5 4,132.5 22 EQUALS: Personal saving 166.1 205.8 219.3 212.6 228.8 212.5 223.4 212.6 MEMO Per capita (1987 dollars) 23 Gross domestic product 19,550.5 19,540.2 19,189.8 19,166.5 1199,,118877..77 19,220.9 19,184.8 19,250.1 24 Personal consumption expenditures 13,027.6 13,050.8 12,897.9 12,877.4 12,892.0 12,930.2 12,891.4 13,028.4 25 Disposable personal income 14,030.0 14,154.0 13,990.0 13,965.0 14,022.0 13,992.0 13,981.0 14,073.0 26 Saving rate (percent) 4.4 5.1 5.2 5.1 5.4 5.0 5.2 4.9 GROSS SAVING 27 Gross saving 743.4 710.9 715.2 746.9 713.1 697.2 703.8 667.2 28 Gross private saving 826.5 850.4 886.8 873.0 892.1 875.5 906.6 913.2 29 Personal saving 166.1 205.8 219.3 212.6 228.8 212.5 223.4 212.6 30 Undistributed corporate profits1 85.8 49.9 44.6 45.0 43.4 39.4 50.6 73.5 31 Corporate inventory valuation adjustment -17.5 -14.2 3.1 6.7 9.9 -4.8 .7 -2.9 Capital consumption allowances 32 Corporate 350.5 365.5 383.6 380.1 338833..22 384.6 338866..66 338844..99 33 Noncorporate 224.0 229.3 239.3 235.3 236.8 239.1 246.1 242.2 34 Government surplus, or deficit (-), national income and product accounts -83.0 -139.5 -171.6 -126.1 -179.1 -178.4 -202.9 -246.0 35 Federal -124.2 -165.3 -201.6 -146.4 -206.7 -210.2 -243.1 -284.5 36 State and local 41.1 25.7 30.0 20.4 27.6 31.8 40.3 38.5 37 Gross investment 740.7 719.0 734.3 764.9 729.6 719.1 723.4 705.8 38 Gross private domestic 837.6 802.6 726.7 709.3 708.8 740.9 747.9 726.0 39 Net foreign -96.8 -83.6 7.6 55.7 20.8 -21.8 -24.5 -20.3 40 Statistical discrepancy -2.7 8.1 19.0 18.0 16.5 22.0 19.6 38.5 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 Item Q4 Q1 Q2 Q3 Q4 -106,304 -92,123 -8,615 -23,402 10,374 2,897 -11,617 -10,266 Not seasonally adjusted J' -25,136 15,507 4,593 -16,502 -12,213 Merchandise trade balance2 -115,917 -108,115 -73,586 -27,728 -18,538 -15,537 -20,849 -18,662 Merchandise exports 361,451 389,550 416,517 100,580 100,549 103,889 104,018 108,061 Merchandise imports -477,368 -497,665 -490,103 -128,308 -119,087 -119,426 -124,867 -126,723 Military transactions, net -6,203 -7,219 -5,280 -2,243 -2,329 -1,484 -882 -584 Investment income, net 2,689 11,945 9,364 6,133 4,902 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 1,226 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 -77,083 -38,370 -2,192 -15,702 -18,281 -40,908 18 Bank-reported claims -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 —i i ,"4 i's> 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 -7,360 6,608 23,125 36,546 29 U.S. bank-reported liabilities3 63,382 9,975 -15,046 17,261 -18,795 -28,687 6,474 25,962 30 U.S. nonbank-reported liabilities 5,454 3,779 -511 -1,840 -1,616 -760 1,865 31 Foreign private purchases of U.S. Treasury securities, net 29,618 1,131 16,861 -2,029 3,409 13,434 -1,468 i ,486 32 Foreign purchases of other U.S. securities, net 38,920 1,781 35,417 802 5,306 15,073 10,154 4,884 33 Foreign direct investments in United States, net 70,551 37,213 22,198 4,538 4,336 7,548 6,100 4,214 34 Allocation of special drawing rights 0 0 0 0 0 0 0 0 35 Discrepancy 18,366 63,526 -3,139 19,072 -8,522 8,781 -4,156 750 36 Due to seasonal adjustment 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 brokers and dealers. 38-40. 4. Associated primarily with military sales contracts and other transactions 2. Data are on an international accounts basis. The data differ from the Census arranged with or through foreign official! agencies. basis data, shown in table 3.11, for reasons of coverage and timing. Military 5. Consists of investments in U.S. corporate stocks and in debt securities of exports are excluded from merchandise trade data and are included in line 6. private corporations and state and local governments. 3. Reporting banks include all types of depository institution as well as some SOURCE. Survey of Current Business (U.S. Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • August 1992 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data seasonally adjusted 1991 1992 IItteemm 11998899 11999900 11999911 Oct. Nov. Dec. Jan. Feb. Mar.r Apr.p 1 Exports of domestic and foreign merchandise, (F.A.S. value), excluding grant-aid shipments 333666333,,,888111222 333999333,,,555999222 444222111,,,777333000 333666,,,888444222 333777,,,222666999 333666,,,000555333 333555,,,444666777 333777,,,666555444 333777,,,000888555 333666,,,333888666 2 General imports (customs value), including merchandise for immediate consumption plus entries 444777333,,,222111111 444999555,,,333111111 444888777,,,111222999 444222,,,777111222 444111,,,333888222 444111,,,666777555 444111,,,222666666 444000,,,999444888 444222,,,666666999 444333,,,333555555 ---111000999,,,333999999 ---111000111,,,777111888 ---666555,,,333999999 ---555,,,888777000 ---444,,,111111333 ---555,,,666222222 ---555,,,777999999 ---333,,,222999444 ---555,,,555888444 ---666,,,999666999 1. The Census basis data differ from merchandise trade data shown in table 3.10, line 6. Since Jan. 1, 1987, Census data have been released forty-five days 3.10, lines 3-5, U.S. International Transactions Summary, because of coverage after the end of the month; the previous month is revised to reflect late documents. and timing. On the export side, the largest difference is the exclusion of military Total exports and the trade balance reflect adjustments for undocumented exports sales (which are combined with other military transactions and reported sepa- to Canada. Components may not sum to totals because of rounding. rately in the "service account" in table 3.10, line 6). On the import side, this table SOURCE. FT900, Summary of U.S. Export and Import Merchandise Trade includes imports of gold, ship purchases, imports of electricity from Canada, and (U.S. Department of Commerce, Bureau of the Census). other transactions; military payments are excluded and shown separately in table 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 1991 1992 Type 1988 1989 1990 Dec. Mar. Apr. 1 Total 47,802 74,609 83,316 74,651 77,719 75,868 75,088 74,657 74,712 2 Gold stock, including Exchange Stabilization Fund1 11,057 11,059 11,058 11,058 11,057 11,058 11,058 11,057 11,057 3 Special drawing rights ,3 9,637 9,951 10,989 10,942 11,240 10,980 11,020 10,947 10,930 4 Reserve position in International Monetary Fund 9,745 9,048 9,076 8,943 9,488 9,113 8,996 8,994 8,968 5 Foreign currencies 17,363 44,551 52,193 43,708 45,934 44,717 44,014 43,659 43,757 1. Gold held "under earmark" at Federal Reserve Banks for foreign and 5 currencies have been used. U.S. SDR holdings and reserve positions in the IMF international accounts is not included in the gold stock of the United States; see also have been valued on this basis since July 1974. table 3.13, line 3. Gold stock is valued at $42.22 per fine troy ounce. 3. Includes allocations of SDRs by the International Monetary Fund on Jan. 1 2. Special drawing rights (SDRs) are valued according to a technique adopted of the year indicated, as follows: 1970—$867 million; 1971—$717 million; 1972— by the International Monetary Fund (IMF) in July 1974. Values are based on a $710 million; 1979—$1,139 million; 1980—$1,152 million; 1981—$1,093 million; weighted average of exchange rates for the currencies of member countries. From plus net transactions in SDRs. July 1974 through December 1980, 16 currencies were used; since January 1981, 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 AAsssseett 11998888 11998899 11999900 Nov. Dec. Jan. Feb. Mar. Apr. May" 1 Deposits 347 589 369 346 968 321 264 262 206 217 Held in custody 2 U.S. Treasury securities 232,547 224,911 278,499 285,905 281,107 293,958 297,834 300,277 303,413 307,562 3 Earmarked gold3 13,636 13,456 13,387 13,307 13,303 13,303 13,305 13,304 13,304 13,295 1. Excludes deposits and U.S. Treasury securities held for international and Treasury securities payable at face value in dollars or foreign currencies, regional organizations. 3. Held for foreign and international accounts and valued at $42.22 per fine 2. Marketable U.S. Treasury bills, notes, and bonds and nonmarketable U.S. troy ounce; not included in the gold stock of the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A55 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data1 Millions of dollars, end of period 1991 1992 AAsssseettss 11998888 11998899 11999900 Oct. Nov. Dec. Jan. Feb. Mar. Apr. All foreign countries 1 Total, all currencies 505,595 545,366 556,925 546,570 550,777 548,901 547,704' 550,358' 562,142' 2 Claims on United States 169,111 198,835 188,4% 176,959 177,828 176,301 180,052" 178,026 193,228 3 Parent bank 129,856 157,092 148,837 136,570 137,165 137,509 142,277 142,019 156,923 4 Other banks in United States 14,918 17,042 13,2% 13,432 13,543 12,884 11,675" 10,837 11,612 5 Nonbanks 24,337 24,701 26,363 26,957 27,120 25,908 26,100 25,170 24,693 6 Claims on foreigners 299,728 300,575 312,449 299,915 304,212 303,934 297,400" 301,900 300,026 7 Other branches of parent bank 107,179 113,810 135,003 108,269 107,343 111,729 103,456 108,052 112,326 8 Banks 96,932 90,703 72,602 80,060 84,980 81,970 82,332" 83,904" 79,311 9 Public borrowers 17,163 16,456 17,555 18,685 18,940 18,652 18,223 18,421 18,328 10 Nonbank foreigners 78,454 79,606 87,289 92,901 92,949 91,583 93,389 91,523" 90,061 11 Other assets 36,756 45,956 55,980 69,6% 68,737 68,666 70,252" 70,432" 68,888" 12 Total payable in U.S. dollars ... 357,573 382,498 379,479 365,223 365,143 363,941 359,487' 365,000" 380,907' 13 Claims on United States 163,456 191,184 180,174 170,615 171,701 169,662 173,827 172,377 187,538 14 Parent bank 126,929 152,294 142,962 132,929 133,984 133,476 138,686 138,754 153,653 15 Other banks in United States 14,167 16,386 12,513 12,904 12,668 12,025 10,924 10,006 10,956 16 Nonbanks 22,360 22,504 24,699 24,782 25,049 24,161 24,217 23,617 22,929 17 Claims on foreigners 177,685 169,690 174,451 164,543 165,653 167,010 157,338 163,623 163,877 18 Other branches of parent bank 80,736 82,949 95,298 75,649 75,986 78,114 70,637 75,087 78,067 19 Banks 54,884 48,3% 36,440 41,132 42,808 41,635 39,964 42,488" 39,671 20 Public borrowers 12,131 10,961 12,298 13,889 13,671 13,685 13,202 13,136 13,217 21 Nonbank foreigners 29,934 27,384 30,415 33,873 33,188 33,576 33,535 32,912" 32,922 22 Other assets 16,432 21,624 24,854 30,065 27,789 27,269 28,322" 29,000" 29,492" United Kingdom 23 Total, all currencies 156,835 161,947 184,818 172,795 174,648 175,599 174,467 172,479 169,275 24 Claims on United States 40,089 39,212 45,560 32,615 32,531 35,257 36,620" 34,655 37,015 25 Parent bank 34,243 35,847 42,413 29,021 28,901 31,931 32,765 31,302 34,048 26 Other banks in United States 1,123 1,058 792 1,502 1,259 1,267 1,392" 1,211 1,158 27 Nonbanks 4,723 2,307 2,355 2,092 2,371 2,059 2,463 2,142 1,809 28 Claims on foreigners 106,388 107,657 115,536 108,397 111,323 109,692 108,046" 107,645 101,627 29 Other branches of parent bank 35,625 37,728 46,367 36,757 36,637 35,735 33,357 33,924 33,599 30 Banks 36,765 36,159 31,604 33,375 36,709 36,394 36,537" 37,349" 33,499 31 Public borrowers 4,019 3,293 3,860 3,492 3,512 3,306 3,377 3,144 3,060 32 Nonbank foreigners 29,979 30,477 33,705 34,773 34,465 34,257 34,775 33,228" 31,469 33 Other assets 10,358 15,078 23,722 31,783 30,794 30,650 29,801 30,179 30,633 34 Total payable in U.S. dollars 103,503 103,208 116,762 103,439 103,591 105,974 103,833 102,341 102,283 35 Claims on United States 38,012 36,404 41,259 29,995 30,054 32,418 33,801 31,788 34,464 36 Parent bank 33,252 34,329 39,609 27,404 27,689 30,370 31,239 29,724 32,645 37 Other banks in United States 964 843 334 1,378 894 822 901 678 725 38 Nonbanks 3,7% 1,232 1,316 1,213 1,471 1,226 1,661 1,386 1,094 39 Claims on foreigners 60,472 59,062 63,701 57,155 59,200 58,791 55,281 55,985 52,306 40 Other branches of parent bank 28,474 29,872 37,142 28,655 29,210 28,667 26,827 26,747 25,933 41 Banks 18,494 16,579 13,135 13,269 15,480 15,219 14,106 15,438" 13,154 42 Public borrowers 2,840 2,371 3,143 2,%9 2,848 2,853 2,707 2,657 2,623 43 Nonbank foreigners 10,664 10,240 10,281 12,262 11,662 12,052 11,641 11,143" 10,5% 44 Other assets 5,019 7,742 11,802 16,289 14,337 14,765 14,751 14,568 15,513 Bahamas and Cayman Islands 45 Total, all currencies 170,639 176,006 162,316 170,529 170,846 168,326 167,648 168,972 175,687 46 Claims on United States 105,320 124,205 112,989 117,782 118,164 115,244 116,488 115,400 122,556 47 Parent bank 73,409 87,882 77,873 83,286 83,348 81,520 84,506 84,499 91,343 48 Other banks in United States 13,145 15,071 11,869 11,028 11,457 10,907 9,626 8,%9 9,809 49 Nonbanks 18,766 21,252 23,247 23,468 23,359 22,817 22,356 21,932 21,404 50 Claims on foreigners 58,393 44,168 41,356 43,662 44,177 45,229 42,866 44,033 44,285 51 Other branches of parent bank 17,954 11,309 13,416 9,086 10,268 11,098 10,549 11,528 11,278 52 Banks 28,268 22,611 16,310 20,300 19,865 20,174 18,998 19,311 19,645 53 Public borrowers 5,830 5,217 5,807 7,435 7,363 7,161 6,600 6,545 6,599 54 Nonbank foreigners 6,341 5,031 5,823 6,841 6,681 6,7% 6,719 6,649 6,763 55 Other assets 6,926 7,633 7,971 9,085 8,505 7,853 8,294 9,539 8,846 56 Total payable in U.S. dollars 163,518 170,780 158,390 166,598 166,582 163,771 163,078 164,548 171,114 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 • August 1992 3.14—Continued 1991 1992 11999900 Oct. Nov. Dec. Jan. Feb. Mar. Apr. All foreign countries 57 Total, all currencies 505,595 545,366 556,925 546,570 550,777 548,901 547,704r 550,358r 562,142r 549,477 58 Negotiable certificates of deposit (CDs) .. 28,511 23,500 18,060 18,928 18,334 16,284 16,156 15,988 14,637 12,847 59 To United States 185,577 197,239 189,412 186,246 188,686 198,121 189,083 190,885 210,012 196,114 60 Parent bank 114,720 138,412 138,748 130,092 131,383 136,431 127,532 123,775 142,551 138,081 61 Other banks in United States 14,737 11,704 7,463 10,356 12,892 13,260 13,683 12,674 14,137 15,075 62 Nonbanks 56,120 47,123 43,201 45,798 44,411 48,430 47,868 54,436 53,324 42,958 63 To foreigners 270,923 296,850 311,668 295,282 298,152 288,254 295,861 299,046 292,659 2%,630 64 Other branches of parent bank 111,267 119,591 139,113 108,534 109,085 112,033 105,873 108,744 113,314 111,968 65 Banks 72,842 76,452 58,986 68,286 67,945 63,097 72,407 71,346 63,060 65,105 66 Official institutions 15,183 16,750 14,791 17,247 19,394 15,5% 16,704 16,972 15,697 16,083 67 Nonbank foreigners 71,631 84,057 98,778 101,215 101,728 97,528 100,877 101,984 100,588 103,474 68 Other liabilities 20,584 27,777 37,785 46,114 45,605 46,242 46,604r 44,439r 44,834r 43,886 69 Total payable in U.S. dollars 367,483 396,613 383,522 366,449 369,515 370,561 360,322r 363,582r 380,178r 365,539 70 Negotiable CDs 24,045 19,619 14,094 14,157 13,813 11,909 11,442 11,515 10,278 8,462 71 To United States 173,190 187,286 175,654 174,274 176,254 185,286 176,635 179,178 198,143r 185,110 72 Parent bank 107,150 132,563 130,510 123,399 124,625 129,669 121,098 117,272 135,761 131,652 73 Other banks in United States 13,468 10,519 6,052 9,011 11,436 11,707 12,191 11,532 13,036 14,217 74 Nonbanks 52,572 44,204 39,092 41,864 40,193 43,910 43,346 50,374 49,346r 39,241 75 To foreigners 160,766 176,460 179,002 161,850 164,275 158,993 156,339 156,744 156,216 157,189 76 Other branches of parent bank 84,021 87,636 98,128 75,243 76,224 76,601 70,839 74,466 77,492 75,780 77 Banks 28,493 30,537 20,251 25,653 24,501 24,156 25,781 23,665 21,910 22,619 78 Official institutions 8,224 9,873 7,921 10,565 13,375 10,304 10,555 10,652 9,625 10,413 79 Nonbank foreigners 40,028 48,414 52,702 50,389 50,175 47,932 49,164 47,961 47,189 48,377 80 Other liabilities 9,482 13,248 14,772 16,168 15,173 14,373 15,906r 16,145r 15,541r 14,778 United Kingdom 81 Total, all currencies 156,835 161,947 184,818 172,795 174,648 175,599 174,467 172,479 169,275 170,775 82 Negotiable CDs 24,528 20,056 14,256 14,145 13,506 11,333 10,993 10,581 9,816 7,422 83 To United States 36,784 36,036 39,928 29,137 30,560 37,720 31,018 30,631 35,225 36,512 84 Parent bank 27,849 29,726 31,806 21,080 22,629 29,834 23,112 23,464 27,937 29,317 85 Other banks in United States 2,037 1,256 1,505 2,053 1,934 1,438 2,325 1,891 1,201 2,011 86 Nonbanks 6,898 5,054 6,617 6,004 5,997 6,448 5,581 5,276 6,087 5,184 87 To foreigners 86,026 92,307 108,531 100,267 102,299 98,167 104,868 104,432 %,702 99,804 88 Other branches of parent bank 26,812 27,397 36,709 26,879 26,977 30,054 27,561 27,864 27,937 28,239 89 Banks 30,609 29,780 25,126 28,254 27,959 25,541 31,929 30,686 26,017 27,046 90 Official institutions 7,873 8,551 8,361 10,045 12,628 9,670 10,432 10,685 9,277 9,539 91 Nonbank foreigners 20,732 26,579 38,335 35,089 34,735 32,902 34,946 35,197 33,471 34,980 92 Other liabilities 9,497 13,548 22,103 29,246 28,283 28,379 27,588 26,835 27,532 27,037 93 Total payable in U.S. dollars 105,907 108,178 116,094 103,238 104,433 108,755 103,232 100,882 101,602r 100,799 94 Negotiable CDs 22,063 18,143 12,710 12,397 12,042 10,076 9,236 9,061 8,562 6,136 95 To United States 32,588 33,056 34,697 24,394 25,517 33,003 26,419 26,261 30,993r 32,510 % Parent bank 26,404 28,812 29,955 19,391 20,923 28,260 21,663 21,788 26,272 27,904 97 Other banks in United States 1,752 1,065 1,156 1,704 1,481 1,177 1,954 1,639 1,032 1,7% 98 Nonbanks 4,432 3,179 3,586 3,299 3,113 3,566 2,802 2,834 3,689r 2,810 99 To foreigners 47,083 50,517 60,014 56,639 57,527 56,626 57,522 55,216 52,059 52,625 100 Other branches of parent bank 18,561 18,384 25,957 18,319 18,678 20,800 18,498 18,863 18,792 18,136 101 Banks 13,407 12,244 9,488 12,040 10,542 11,069 13,061 11,188 9,861 9,435 102 Official institutions 4,348 5,454 4,692 7,050 9,995 7,156 7,580 7,698 6,628 6,998 103 Nonbank foreigners 10,767 14,435 19,877 19,230 18,312 17,601 18,383 17,467 16,778 18,056 104 Other liabilities 4,173 6,462 8,673 9,808 9,347 9,050 10,055 10,344 9,988 9,528 Bahamas and Cayman Islands 105 Total, all currencies 170,639 176,006 162,316 170,529 170,846 168,326 167,648 168,972 175,687 162,490 106 Negotiable CDs 953 678 646 981 1,034 1,173 1,382 1,709 932 1,538 107 To United States 122,332 124,859 114,738 130,223 129,781 129,872 130,285 131,009 138,990 124,182 108 Parent bank 62,894 75,188 74,941 84,853 83,057 79,394 79,585 73,744 82,050 75,894 109 Other banks in United States 11,494 8,883 4,526 7,070 9,728 10,231 10,045 9,733 11,696 12,060 110 Nonbanks 47,944 40,788 35,271 38,300 36,996 40,247 40,655 47,532 45,244 36,228 111 To foreigners 45,161 47,382 44,444 36,861 37,857 35,200 34,106 34,425 34,002 34,949 112 Other branches of parent bank 23,686 23,414 24,715 19,675 19,555 17,388 16,590 17,050 17,100 16,933 113 Banks 8,336 8,823 5,588 5,218 5,984 5,662 5,497 5,054 5,139 6,059 114 Official institutions 1,074 1,097 622 666 646 572 450 490 536 736 115 Nonbank foreigners 12,065 14,048 13,519 11,302 11,672 11,578 11,569 11,831 11,227 11,221 116 Other liabilities 2,193 3,087 2,488 2,464 2,174 2,081 1,875 1,829 1,763 1,821 117 Total payable in U.S. dollars 162,950 171,250 157,132 166,226 166,157 163,603 162,637 164,241 171,049 157,866 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A57 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1991 1992 1989 Oct. Nov Dec. Jan. Feb. Mar. 1 Total1 312,477 344,529 357,956 366,235 364,505 376,278 379,259 385,564 By type 2 Liabilities reported by banks in the United States' . 36,496 39,880 41,505 42,785 38,361 41,418 42,507 43,860 3 U.S. Treasury bills and certificates 76,985 79,424 94,428 92,855 92,692 92,711 94,731 102,143 U.S. Treasury bonds and notes 4 Marketable 179,269 202,487 197,972 205,166 207,687 216,374 216,181 213,045 5 Nonmarketable 568 4,491 4,7% 4,827 4,858 4,892 4,922 4,956 6 U.S. securities other than U.S. Treasury securities 19,159 18,247 19,255 20,602 20,907 20,883 20,918 21,560 By area 7 Western Europe1 132,849 167,191 170,407 173,975 169,747 174,544 174,560 179,434 8 Canada 9,482 8,671 9,121 9,428 7,460 7,642 8,251 7,016 9 Latin America and Caribbean 9,313 21,184 32,583 33,975 36,038 37,143 38,142 40,464 10 Asia 153,338 138,0% 134,635 137,490 139,558 146,222 147,925 148,783 11 Africa , 1,030 1,434 1,519 1,383 2,092 2,409 2,408 2,011 12 Other countries 6,469 7,955 9,689 9,982 9,608 8,316 7,971 7,854 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 1991 1992 IItteemm 11998888 11998899 11999900 June Sept. Dec. Mar. 1 Banks' liabilities 77774444,,,,999988880000 66667777,,,,888833335555 77770000,,,,444477777777 55559999,,,,333300006666 66663333,,,,000066663333 77774444,,,,999988886666 66667777,,,,666600002222 66668888,,,,999988883333 66665555,,,,111122227777 66666666,,,,7777%%%% 66660000,,,,555533334444 66663333,,,,555511118888 77773333,,,,111133337777 55558888,,,,333377778888 22225555,,,,111100000000 22220000,,,,444499991111 22229999,,,,666677772222 22227777,,,,777799995555 22229999,,,,666633332222 22226666,,,,333300007777 22223333,,,,999999995555 44443333,,,,888888884444 44444444,,,,666633336666 33337777,,,,111122224444 33332222,,,,777733339999 33333333,,,,888888886666 44446666,,,,888833330000 33334444,,,,333388883333 5 Claims of banks' domestic customers2 333366664444 3333,,,,555500007777 6666,,,,333300009999 1111,,,,666644448888 2222,,,,333344448888 3333,,,,222277774444 2222,,,,888866662222 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 • August 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 11999911 Oct. Nov. Dec. Jan. Feb. Mar.r Apr." 1 AU foreigners 736,878 759,634 754,203 750,213 758,168 754,203 750,966 754,331r 771,909 767,213 2 Banks' own liabilities 577,498 577,229 573,600 565,384 575,625 573,600 571,373 573,485r 580,922 576,378 3 Demand deposits 22,032 21,723 20,319 17,637 21,630 20,319 19,309 18,906 19,286 19,045 4 Time deposits 168,780 168,017 159,844 154,693 154,314 159,844 148,183 145,861 147,909 153,352 5 Other. 67,823 65,822 65,614 72,934 75,679 65,614 73,006 75,861 75,321 75,738 6 Own foreign offices4 318,864 321,667 327,823 320,120 324,002 327,823 330,875 332,857r 338,406 328,243 7 Banks' custody liabilities5 159,380 182,405 180,603 184,829 182,543 180,603 179,593 180,846r 190,987 190,835 8 U.S. Treasury bills and certificates 91,100 96,796 110,734 112,280 110,938 110,734 110,000 111122,,117722 111199,,888822 112200,,992244 9 Other negotiable and readily transferable instruments 19,526 17,578 18,664 17,047 17,206 18,664 17,745 16,894 18,429 17,797 10 Other 48,754 68,031 51,205 55,502 54,399 51,205 51,848 51,780" 52,676 52,114 11 Nonmonetary international and regional organizations 4,894 5,918 8,947 7,665 8,721 8,947 9,895 10,615 10,469 9,947 12 Banks' own liabilities 3,279 4,540 6,793 5,964 6,828 6,793 8,112 8,879 8,567 8,064 13 Demand deposits % 36 43 28 24 43 39 35 144 29 14 Time deposits 927 1,050 2,764 2,490 2,392 2,764 2,049 2,058 1,442 1,642 15 Other3 2,255 3,455 3,986 3,446 4,412 3,986 6,024 6,786 6,981 6,393 16 Banks' custody liabilities5 1,616 1,378 2,154 1,701 1,893 2,154 1,783 1,736 1,902 1,883 17 U.S. Treasury bills and certificates 197 364 1,730 1,246 1,530 1,730 1,328 11,,331177 11,,222255 11,,444422 18 Other negotiable and readily transferable instruments 1,417 1,014 424 455 363 424 455 417 637 441 19 Other 2 0 0 0 0 0 0 2 40 0 20 Official institutions9 113,481 119,303 131,053 135,933 135,640 131,053 134,129 137,238r 146,003 147,324 21 Banks' own liabilities 31,108 34,910 34,376 37,559 38,960 34,376 37,908 38,623r 39,760 40,403 22 Demand deposits 2,196 1,924 2,642 1,307 1,621 2,642 1,480 1,297 1,342 1,360 23 Time deposits 10,495 14,359 16,474 14,544 13,145 16,474 16,307 14,655 17,652 18,557 24 Other3. 18,417 18,628 15,260 21,708 24,194 15,260 20,121 22,67 lr 20,766 20,486 25 Banks' custody liabilities5 82,373 84,393 96,677 98,374 %,680 %,677 %,221 98,615 106,243 106,921 26 U.S. Treasury bills and certificates6 76,985 79,424 92,692 94,428 9922,,885555 92,692 9922,,771111 9944,,773311 110022,,114433 110022,,996688 27 Other negotiable and readily transferable instruments 5,028 4,766 3,879 3,811 3,611 3,879 3,422 3,697 4,019 3,812 28 Other 361 203 106 135 214 106 88 187 81 141 29 Banks10 515,275 540,805 520,106 515,954 521,517 520,106 515,494 516,749r 526,222 520,225 30 Banks' own liabilities 454,273 458,470 457,534 447,730 455,881 457,534 451,527 453,002r 460,036 454,480 31 Unaffiliated foreign banks 135,409 136,802 129,711 127,610 131,879 129,711 120,652 120,145r 121,630 126,237 32 Demand deposits 10,279 10,053 8,630 8,164 11,396 8,630 8,807 8,369 8,543 8,753 33 Time deposits 90,557 88,541 82,936 78,181 80,199 82,936 73,988 74,560 74,316 79,699 34 Other3 34,573 38,208 38,145 41,265 40,284 38,145 37,857 37,216r 38,771 37,785 35 Own foreign offices4 318,864 321,667 327,823 320,120 324,002 327,823 330,875 332,857r 338,406 328,243 36 Banks' custody liabilities5 61,002 82,335 62,572 68,224 65,636 62,572 63,%7 63,747r 66,186 65,745 37 U.S. Treasury bills and certificates 9,367 10,669 7,471 8,363 77,,885555 7,471 7,713 77,,773333 88,,334444 88,,441100 38 Other negotiable and readily transferable instruments7 5,124 5,341 5,694 6,041 5,852 5,694 5,853 5,999 6,733 7,117 39 Other 46,510 66,325 49,407 53,820 51,929 49,407 50,401 50,015r 51,109 50,218 40 Other foreigners 103,228 93,608 94,097 90,661 92,290 94,097 91,448 89,729 89,215 89,717 41 Banks' own liabilities 88,839 79,309 74,897 74,131 73,956 74,897 73,826 72,981 72,559 73,431 42 Demand deposits 9,460 9,711 9,004 8,138 8,589 9,004 8,983 9,205 9,257 8,903 43 Time deposits 66,801 64,067 57,670 59,478 58,578 57,670 55,839 54,588 54,499 53,454 44 Other. 12,577 5,530 8,223 6,515 6,789 8,223 9,004 9,188 8,803 11,074 45 Banks' custody liabilities5 14,389 14,299 19,200 16,530 18,334 19,200 17,622 16,748 16,656 16,286 46 U.S. Treasury bills and certificates6 4,551 6,339 8,841 8,243 88,,669988 8,841 8,248 88,,339911 88,,117700 88,,110044 47 Other negotiable and readily transferable instruments 7,958 6,457 8,667 6,740 7,380 8,667 8,015 6,781 7,040 6,427 48 Other 1,880 1,503 1,692 1,547 2,256 1,692 1,359 1,576 1,446 1,755 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 7,203 7,073 7,456 7,5% 7,137 7,456 7,855 8,049 8,110 7,624 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 Area and country 1989 1990 1991 Oct. Feb. 1 Total 736,878 759,634 754,203 750,213 758,168 754,203 750,966 754,331R 771,909* 2 Foreign countries 731,984 753,716 745,256 742,548 749,447 745,256 741,071 743,716R 761,440* 3 Europe 237,501 254,452 249,001 246,935 251,443 249,001 244,628 245,881 255,959* 1 1 1 4 5 6 7 8 9 0 1 2 G A N G I B F D F t i r a e r u e e e n a e l l t r s n y l g n h e m t a m r i c c e n i u a e e r a a d n m l r a y k - n L d u s xembourg 2 1 1 6 6 7 6 1 0 1 1 , , , , , , , , 6 5 9 1 5 6 2 0 4 1 7 6 0 4 3 2 1 7 3 8 9 3 8 3 5 0 8 3 1 1 5 0 7 7 2 1 1 , , , , , , , 3 9 4 9 7 3 6 2 3 5 3 8 3 4 8 0 2 9 0 5 2 4 6 5 2 9 9 3 1 1 7 8 1 3 3 1 1 , , , , , , , 1 6 8 5 3 9 7 1 3 6 4 0 2 3 3 6 9 4 1 1 8 0 7 7 5 3 1 3 1 1 6 0 7 2 3 1 , , , , , , 5 8 4 8 2 6 2 9 9 4 9 7 9 3 4 5 1 3 6 1 4 1 2 0 9 2 8 3 1 1 6 1 8 3 4 1 1 1 , , , , , , , , 1 0 0 8 2 6 3 1 0 2 3 8 9 9 0 1 4 8 4 2 8 5 0 0 3 3 0 3 1 1 7 1 8 3 3 1 1 , , , , , , , 1 8 5 6 3 9 7 3 1 6 4 0 3 2 6 3 4 9 1 1 8 7 0 5 7 1 3 2 1 1 7 9 7 0 3 1 , , , , , . 9 8 2 8 7 9 8 3 0 6 9 5 4 7 4 4 9 9 5 8 3 4 3 1 8 1 3 2 1 9 7 9 6 5 1 , , , , , , 5 3 2 8 4 1 9 6 0 5 2 3 9 4 5 9 3 2 4 2 5 5 9 6 7 0 3 2 1 9 9 6 9 6 1 1 1 , , , , , , , , 9 2 0 5 2 0 2 0 8 1 5 2 5 5 1 3 9 5 5 0 6 3 6 4 0 2 8 * * * * * * 2 2 2 2 1 1 1 1 1 1 1 0 1 2 3 3 5 6 7 8 9 4 Y O N O T P U S S U S o w w p u u t t o n . h h S r a r g r i i e t e k e i t t w . o u d n e z r r S e s g d e a e y . l W E n a y R r a l l K a v a e s i i n s a t n d t e g e r r d n n o E m E u u r r o o p p e e 1 1 2 1 1 3 0 1 2 4 4 2 2 3 1 1 1 , , , , , , , , , 3 4 4 4 3 6 4 4 5 8 3 6 0 1 9 6 9 0 7 1 6 5 4 1 8 8 6 2 1 8 4 3 0 1 3 1 0 2 7 6 2 9 1 1 1 1 , . , , , , , , . 3 5 6 9 9 5 6 1 8 5 1 5 4 9 2 5 5 6 3 8 4 1 7 4 0 8 8 5 9 7 9 5 9 1 3 0 1 9 7 2 2 3 0 1 1 1 , , , , , , , , , 2 6 1 4 2 2 2 8 3 2 5 2 2 4 8 6 6 2 3 9 4 9 4 2 7 4 7 6 2 6 1 1 8 9 3 1 1 9 6 2 3 1 2 1 1 2 , , , , , , , , . 4 4 4 7 8 1 9 2 2 4 1 6 3 1 3 0 7 7 1 6 9 7 6 1 1 3 7 3 9 7 4 3 8 9 3 1 1 9 2 6 3 5 1 1 1 1 , , , , , , , , , 8 7 2 4 3 5 4 2 1 8 1 4 1 2 5 2 4 5 0 4 3 3 4 1 3 7 2 4 2 5 8 6 6 1 3 0 1 9 2 2 3 7 0 1 1 1 , , , , , , , , , 2 4 2 1 2 6 2 3 5 2 8 6 2 2 8 3 2 9 4 9 4 6 7 4 2 4 6 2 1 7 8 1 6 1 3 1 0 9 5 3 3 2 1 1 1 1 , , , , , , , , , 3 6 4 3 7 3 4 9 8 1 1 7 6 9 5 8 9 8 7 2 1 6 1 7 3 5 0 6 7 6 2 4 1 1 3 0 1 1 4 4 2 2 2 4 1 0 1 , , , , , , , , , 7 0 1 5 5 3 5 1 6 6 2 0 1 5 4 4 9 7 6 2 5 3 9 7 5 4 0 8 7 9 3 8 0 * * 1 3 0 1 1 7 2 2 3 3 3 5 1 1 , , , , , , , , , 1 2 5 4 0 6 1 2 6 5 1 0 8 0 4 0 7 8 0 0 9 6 3 5 4 8 0 1 6 6 4 0 8 * * * * * 24 Canada 18,865 20,349 21,563 24,685 23,131 21,563 18,646 20,437 20,884 25 Latin America and Caribbean 311,028 332,997 343,817 340,473 345,107 343,817 348,715 348,078* 349,723* 26 Argentina 7,304 7,365 7,758 7.190 7,452 7,758 7,899 7,878 8,310 27 Bahamas 99,341 107,386 99,834 99,858 100,339 99,834 100,689 99,736* 102,083* 28 Bermuda 2,884 2,822 3,178 3.191 3,295 3,178 3,658 3,478 3,364* 29 Brazil 6,351 5,834 5,942 5,998 5,811 5,942 5,785 5,760 5,745* 30 British West Indies 138,309 147,321 162,427 160,488 163,419 162,427 165,048 166,648* 165,483* 31 Chile 3,212 3,145 3,284 3,348 3,388 3,284 3,322 3,408 3,623 32 Colombia 4,653 4,492 4,662 4,823 4.797 4,662 4,627 4,713 4,972* 33 Cuba 10 11 2 4 12 2 6 5 11 34 Ecuador 1,391 1,379 1,232 1,237 1,236 1,232 1,248 1,217 1,168 35 Guatemala 1,312 1,541 1,594 1,541 1,589 1,594 1,554 1,549 1,539 36 Jamaica 209 257 231 202 201 231 234 227 271 37 Mexico 15,423 16,650 19,957 19,958 20,499 19,957 20,372 20,319 21,540 38 Netherlands Antilles 6,310 7,357 5,592 5,499 5,924 5,592 6,272 6,231 5,205* 4 4 4 3 4 0 1 3 9 2 P O P V U e a t e r r h n u n u e a g e r m u z a u a y e la 4 9 2 6 1 , , , , , 3 4 2 2 9 6 8 8 0 8 2 4 2 6 4 1 4 2 6 2 1 , , , , , 5 5 7 2 2 7 2 7 7 9 4 0 9 1 4 1 4 2 6 3 1 , , , , , 1 6 8 1 2 1 9 8 8 4 1 5 8 1 9 1 4 2 6 2 1 , , , , , 4 4 7 2 2 4 5 7 3 3 2 0 3 7 4 1 4 2 6 2 1 , , . , , 5 3 7 1 2 6 7 9 7 4 3 3 8 1 0 1 4 2 6 3 1 , , , , , 1 6 8 1 2 1 9 8 8 4 1 5 8 1 9 1 4 2 6 3 1 , , , , , 3 3 5 5 2 4 1 8 2 3 9 3 6 0 3 1 4 2 6 2 1 , , , , , 4 1 7 2 4 0 5 0 2 2 4 8 2 1 4 1 4 2 6 2 1 , , , , , 1 1 0 8 1 5 9 5 2 8 8 0 4 0 7 * * 44 Asia 156,201 136,844 120,486 120,434 120,019 120,486 119,199 120,148 125,765* China 45 Mainland 1,773 2,421 2,625 2.494 2,783 2,625 2,739 2,607 2,677 46 Taiwan 19,588 11,246 11,495 12,443 11,675 11,495 10,951 10,588 10,596 47 Hong Kong 12,416 12,754 14,374 13,941 13,795 14,374 15,162 14,967* 14,716 48 India 780 1,233 2,418 2,504 2,613 2,418 2,297 2,256* 2,028 49 Indonesia 1,281 1,238 1.463 1,230 1,412 1.463 1,037 1,276 1,516 50 Israel 1,243 2,767 2,015 2,115 2,108 2,015 2,193 2,137 2,536 51 Japan 81,184 67,076 47,029 47,068 46,004 47,029 46,086 44,821 49,560* 52 Korea 3,215 2,287 2,538 2,169 2,555 2,538 2,442 2,754 2,827 53 Philippines 1,766 1,585 2,449 1,926 2,139 2,449 2,256 2,462 2,638 54 Thailand 2,093 1.443 2,252 3,113 3,581 2,252 2,933 3,224 3,330 55 Middle-East oil-exporting countries13 13,370 15,829 15,752 15,529 16,301 15,752 15,901 18,410 19,311* 56 Other 17,491 16,965 16,076 15,902 15,053 16,076 15,202 14,646 14,030* 57 Africa 3,824 4,630 4,822 4,558 4,465 4,822 5.042 4,919 4,886 58 Egypt 686 1,425 1,621 1,241 1,060 1,621 1,620 1,632 1,337 59 Morocco 78 104 79 78 93 79 86 82 90 60 South Africa 206 228 228 207 173 228 201 199 191 61 Zaire 86 53 31 42 32 31 28 30 35 62 Oil-exporting countries14 1,121 1,110 1,082 1,182 1,280 1,082 1,204 1,214 1,428 63 Other 1,648 1,710 1,781 1,808 1,827 1,781 1,903 1,762 1,805 64 Other countries 4,564 4.444 5,567 5,463 5,282 5,567 4,841 4,253 4,223 65 Australia 3,867 3,807 4.464 4,445 4,116 4.464 3,619 3,065 3,100 66 All other 697 637 1,103 1,018 1,166 1,103 1,222 1,188 1,123 67 Nonmonetary international and regional organizations 4,894 5,918 8,947 7,665 8,721 8,947 9,895 10,615 10,469* 68 International15 3,947 4,390 6,451 5,411 6,180 6,451 7,439 8,292 8,063* 69 Latin American regional 684 1,048 1,181 1,242 1,366 1,181 1,422 1,500 1,785* 70 Other regional16 263 479 1,315 1,012 1,175 1,315 1,034 823 621* 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 • August 1992 3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1 Payable in U.S. Dollars Millions of dollars, end of period 1991 1992 AArreeaa aanndd ccoouunnttrryy 11998899 11999900 11999911 Oct. Nov. Dec. Jan. Feb. Mar." Apr.P 1 534,492 511,543 514,248 511,082 514,637 514,248 508,616 508,770" 512,803 506,394 2 Foreign countries 530,630 506,750 507,875 509,301 511,347 507,875 504,421 502,230" 506,340 501,515 3 Europe 119,025 113,093 114,252 103,710 107,754 114,252 112,665 110,834" 112,932 123,592 4 Austria 415 362 327 374 325 327 211 447 375 444 5 Belgium-Luxembourg 6,478 5,473 6,158 7,677 6,%2 6,158 6,726 7,451" 7,005 6,%7 6 Denmark 582 497 686 624 671 686 792 709 737 871 7 Finland 1,027 1,047 1,912 1,195 1,378 1,912 1,854 1,586 1,321 1,475 R France 16,146 14,468 15,112 13,085 14,813 15,112 15,204 13,742 14,053 13,706 9 Germany 2,865 3,343 3,339 2,077 2,839 3,339 3,295 3,405 3,788 3,117 10 Greece 788 727 553 487 555 553 550 562 537 567 11 Italy 6,662 6,052 8,242 6,370 6,362 8,242 8,000 7,346 8,584 9,835 12 Netherlands 1,904 1,761 2,539 2,169 2,220 2,539 2,664 2,454 2,259 2,680 13 Norway 609 782 669 682 776 669 801 665 687 569 14 Portugal 376 292 344 301 358 344 360 350 368 361 IS Spain 1,930 2,668 1,844 2,410 2,480 1,844 2,487 2,120 3,310 3,692 16 Sweden 1,773 2,094 2,315 1,842 2,347 2,315 2,751 2,923 2,631 3,057 17 Switzerland 6,141 4,202 4,540 4,195 4,469 4,540 4,497 3,921 3,375 4,095 1R Turkey 1,071 1,405 1,063 1,195 1,151 1,063 1,065 1,076" 943 927 19 United Kingdom 65,527 65,151 60,429 55,436 55,917 60,429 56,619 57,077" 58,124 66,291 20 Yugoslavia 1,329 1,142 824 803 848 824 822 810 807 780 21 Other Western Europe2 1,302 597 789 714 1,001 789 1,152 1,110 879 816 22 U.S.S.R 1,179 530 1,970 1,358 1,689 1,970 2,331 2,491 2,659 2,824 23 Other Eastern Europe 921 499 597 716 593 597 484 589 490 518 24 Canada 15,451 16,091 15,025 16,099 15,845 15,025 14,791 15,792 15,384 14,979 25 Latin America and Caribbean 230,438 231,506 246,028 255,126 252,834 246,028 249,880 245,552" 251,417 239,358 2.6 Argentina 9,270 6,967 5,869 5,735 5,778 5,869 5,823 5,834 5,787 5,949 27 Bahamas 77,921 76,525 87,173 85,959 87,160 87,173 89,258 84,173 88,810 82,088 28 Bermuda 1,315 4,056 2,185 4,305 4,102 2,185 3,535 4,444 3,649 6,372 29 Brazil 23,749 17,995 11,845 11,499 11,687 11,845 12,421 12,746" 12,365 12,4% 30 British West Indies 68,749 88,565 107,864 116,429 111,999 107,864 107,268 106,753" 109,095 100,547 31 Chile 4,353 3,271 2,805 2,721 2,833 2,805 2,817 2,746 2,778 2,922 32 Colombia 2,784 2,587 2,425 2,542 2,574 2,425 2,374 2,330 2,339 2,322 33 Cuba 1 0 0 0 0 0 0 0 0 2 34 Ecuador 1,688 1,387 1,053 1,095 1,090 1,053 1,044 1,034 993 986 35 Guatemala 197 191 228 191 195 228 214 230 233 214 36 Jamaica 297 238 158 162 161 158 157 158 152 152 37 Mexico 23,376 14,851 16,606 16,874 17,401 16,606 17,058 17,361" 17,350 17,402 38 Netherlands Antilles 1,921 7,998 1,126 1,247 1,122 1,126 1,112 898 1,098 1,185 39 Panama 1,740 1,471 1,563 1,546 1,641 1,563 1,651 1,662 1,708 1,837 40 Peru 771 663 739 722 724 739 735 669 647 715 41 Uruguay 929 786 599 555 550 599 548 604 604 684 42 Venezuela 9,652 2,571 2,527 2,406 2,634 2,527 2,610 2,611 2,368 2,192 43 Other 1,726 1,384 1,263 1,138 1,183 1,263 1,255 1,299 1,441 1,293 44 157,474 138,722 125,336 126,978 127,191 125,336 119,729 122,5%" 119,680 116,415 China 45 Mainland 634 620 747 597 698 747 813 699 719 660 46 Taiwan 2,776 1,952 2,089 1,578 1,584 2,089 1,919 1,881 1,969 2,008 47 Hong Kong 11,128 10,648 9,723 10,204 10,172 9,723 9,859 9,721 10,582 8,520 48 India 621 655 441 482 450 441 445 418 518 504 49 Indonesia 651 933 952 841 872 952 1,012 1,043 1,079 1,034 50 Israel 813 774 855 994 907 855 873 943 901 836 51 Japan 111,300 90,699 84,797 84,767 85,504 84,797 80,519 80,247" 74,595 71,806 57 Korea 5,323 5,766 6,029 5,363 5,797 6,029 5,683 6,272 6,400 6,200 53 Philippines 1,344 1,247 1,910 1,916 1,971 1,910 1,849 1,789 1,831 1,690 54 Thailand 1,140 1,573 1,713 1,831 1,803 1,713 1,633 1,621 1,599 1,618 55 Middle East oil-exporting countries4 10,149 10,749 8,284 9,973 9,957 8,284 8,073 10,976 12,284 14,557 56 Other 11,594 13,106 7,7% 8,432 7,476 7,7% 7,051 6,986 7,203 6,982 57 Africa 5,890 5,445 4,928 5,273 5,242 4,928 4,874 4,741 4,758 4,818 58 Egypt 502 380 294 302 351 294 255 223 271 242 59 Morocco 559 513 575 589 583 575 591 550 547 547 60 South Africa 1,628 1,525 1,235 1,495 1,493 1,235 1,217 1,189 1,176 1,239 61 Zaire 16 16 4 9 7 4 4 4 4 4 62 Oil-exporting countries5 1,648 1,486 1,298 1,260 1,320 1,298 1,116 1,112 1,164 1,160 63 Other 1,537 1,525 1,522 1,618 1,488 1,522 1,691 1,663 1,5% 1,626 64 Other countries 2,354 1,892 2,306 2,115 2,481 2,306 2,482 2,715 2,169 2,353 65 Australia 1,781 1,413 1,665 1,503 1,718 1,665 1,473 1,478 1,388 1,424 66 All other 573 479 641 612 763 641 1,009 1,237 781 929 67 Nonmonetary international and regional organizations 3,862 4,793 6,373 1,781 3,290 6,373 4,195 6,540 6,463 4,879 1. Reporting banks include all kinds of depository institutions besides commer- 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and cial banks, as well as some brokers and dealers. United Arab Emirates (Trucial States). 2. Includes the Bank for International Settlements and Eastern European 5. Comprises Algeria, Gabon, Libya, and Nigeria. countries not listed in line 23. 6. Excludes the Bank for International Settlements, which is included in 3. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania. "Other Western Europe." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A61 3.19 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the United States1 Payable in U.S. Dollars Millions of dollars, end of period 1991 1992 TTyyppee ooff ccllaaiimm 11998899 11999900 11999911 Oct. Nov. Dec. Jan. Feb/ Mar/ Apr." 1 Total ... 555555599999993333333,,,,,,,000000088888887777777 555555577777779999999,,,,,,,000000044444444444444 555555588888880000000,,,,,,,333333344444445555555 555555566666667777777,,,,,,,333333300000007777777 555555588888880000000,,,,,,,333333344444445555555 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 555555533333334444444,,,,,,,444444499999992222222 555555511111111111111,,,,,,,555555544444443333333 555555511111114444444,,,,,,,222222244444448888888 444444499999999999999,,,,,,,999999933333331111111 511,082 514,637 555555511111114444444,,,,,,,222222244444448888888 508,616 509,007 512,911 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 66666660000000,,,,,,,555555511111111111111 44444441111111,,,,,,,999999900000000000000 33333337777777,,,,,,,222222244444447777777 33333335555555,,,,,,,666666688888880000000 35,261 36,323 33333337777777,,,,,,,222222244444447777777 35,171 38,609 37,043 44 OOwwnn ffoorreeiiggnn ooffffiicceess22 222222299999996666666,,,,,,,000000011111111111111 333333300000004444444,,,,,,,333333311111115555555 333333311111118888888,,,,,,,999999955555552222222 333333300000004444444,,,,,,,555555511111118888888 313,021 313,783 333333311111118888888,,,,,,,999999955555552222222 307,625 306,286 318,432 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111133333334444444,,,,,,,888888888888885555555 111111111111117777777,,,,,,,222222277777772222222 111111111111116666666,,,,,,,444444444444449999999 111111111111113333333,,,,,,,888888877777772222222 119,829 120,218 111111111111116666666,,,,,,,444444444444449999999 121,900 118,985 113,911 66 DDeeppoossiittss 77777778888888,,,,,,,111111188888885555555 66666665555555,,,,,,,222222255555553333333 66666669999999,,,,,,,111111122222225555555 66666668888888,,,,,,,444444488888882222222 72,534 71,610 66666669999999,,,,,,,111111122222225555555 71,884 70,784 66,921 77 OOtthheerr 55555556666666,,,,,,,777777700000000000000 55555552222222,,,,,,,000000011111119999999 44444447777777,,,,,,,333333322222224444444 44444445555555,,,,,,,333333399999990000000 47,295 48,608 44444447777777,,,,,,,333333322222224444444 50,016 48,201 46,990 88 AAllll ootthheerr ffoorreeiiggnneerrss 44444443333333,,,,,,,000000088888885555555 44444448888888,,,,,,,000000055555556666666 44444441111111,,,,,,,666666600000000000000 44444445555555,,,,,,,888888866666661111111 42,971 44,313 44444441111111,,,,,,,666666600000000000000 43,920 45,127 43,525 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 7777777,,,,,,,444444411111118888888 8888888,,,,,,,777777733333339999999 7777777,,,,,,,444444411111118888888 1144 DDoollllaarr ddeeppoossiittss iinn bbaannkkss aabbrrooaadd,, rreeppoorrtteedd bbyy nnoonnbbaannkkiinngg bbuussiinneessss eenntteerrpprriisseess iinn tthhee UUnniitteedd SSttaatteess 45,767 44,574 39,036 38,213 39,822 40,589 39,036 37,575 38,971 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 1991 1992 MMaattuurriittyy,, bbyy bboorrrroowweerr aanndd aarreeaa 11998888 11998899 11999900 June Sept. Dec. Mar." 1 Total 233,184 238,123 206,903 199,216 199,517 195,164 195,079 By borrower 2 Maturity of one year or less 172,634 178,346 165,985 158,660 160,346 159,829 160,694 3 Foreign public borrowers 26,562 23,916 19,305 21,794 19,286 17,461 20,841 4 All other foreigners 146,071 154,430 146,680 136,866 141,060 142,368 139,853 5 Maturity of more than one year2 60,550 59,776 40,918 40,555 39,171 35,335 34,385 6 Foreign public borrowers 35,291 36,014 22,269 22,417 20,820 17,925 16,189 7 All other foreigners 25,259 23,762 18,649 18,138 18,352 17,410 18,196 By area Maturity of one year or less 8 Europe 55,909 53,913 49,184 49,840 50,368 51,207 51,849 9 Canada 6,282 5,910 5,450 5,939 7,309 5,682 6,425 10 Latin America and Caribbean 57,991 53,003 49,782 42,670 41,127 47,280 42,973 11 46,224 57,755 53,258 53,993 53,150 49,462 49,961 1? Africa 3,337 3,225 3,040 3,008 2,937 2,815 2,535 13 All other3 2,891 4,541 5,272 3,212 5,455 3,383 6,951 Maturity of more than one year2 14 Europe 4,666 4,121 3,859 4,128 3,832 3,717 3,876 15 Canada 1,922 2,353 3,290 3,390 3,823 3,676 3,546 16 Latin America and Caribbean 47,547 45,816 25,774 24,962 23,220 19,232 18,741 17 3,613 4,172 5,165 5,414 5,645 6,095 5,460 18 Africa 2,301 2,630 2,374 2,426 2,456 2,393 2,349 19 All other3 501 684 456 237 195 222 413 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 • August 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 1990 1991 1992 Area or country 1988 1989 Mar. June Sept. Dec. Mar. June Sept. Dec. Mar.p 1 Total 346.3 338.8 333.9 321.7 331.5 317.8 325.6 321.0 335.7r 341.5* 348.0 2 G-10 countries and Switzerland 152.7 152.9 146.6 139.3 143.6 132.1 129.9 130.2 134.0* 137.2* 131.0 3 Belgium-Luxembourg 9.0 6.3 6.7 6.2 6.5 5.9 6.2 6.1 5.8 6.0 5.3 4 France 10.5 11.7 10.4 10.2 11.1 10.4 9.7 10.5 11.1 11.0* 9.9 5 Germany 10.3 10.5 11.2 11.2 11.1 10.6 8.8 8.3 9.7 8.2 8.5 6 Italy 6.8 7.4 5.9 5.4 4.4 5.0 4.0 3.6 4.5 5.6 5.4 7 Netherlands 2.7 3.1 3.1 2.7 3.8 3.0 3.3 3.3 3.0 4.7 4.3 8 Sweden 1.8 2.0 2.1 2.3 2.3 2.2 2.0 2.5 2.1 1.9 2.0 9 Switzerland 5.4 7.1 6.2 6.3 5.6 4.4 3.7 3.3 3.9 3.4 3.2 10 United Kingdom 66.2 67.2 64.0 59.9 62.6 60.8 62.3 59.8 64.9* 68.5 65.3 11 Canada 5.0 5.4 4.8 5.1 5.0 5.9 6.8 8.2 5.9 5.8 6.5 12 Japan 34.9 32.2 32.2 30.1 31.3 23.9 23.2 24.6 23.2 22.2 20.7 13 Other developed countries 21.0 20.7 23.0 22.4 23.0 22.6 23.1 21.1 21.7 22.6 21.2 14 Austria 1.5 1.5 1.5 1.5 1.6 1.4 1.4 1.1 1.0 .6 .8 15 Denmark 1.1 1.1 1.2 1.1 1.1 1.1 .9 1.2 .9 .9 .8 16 Finland 1.1 1.0 1.1 .9 .8 .7 1.0 .8 .7 .7 .8 17 Greece 1.8 2.5 2.6 2.7 2.8 2.7 2.5 2.4 2.3 2.6 2.3 18 Norway 1.8 1.4 1.7 1.4 1.6 1.6 1.5 1.5 1.4 1.4 1.5 19 Portugal .4 .4 .4 .8 .6 .6 .6 .6 .5 .6 .5 20 Spain 6.2 7.1 8.2 7.8 8.4 8.3 9.0 7.0 8.3 8.2 7.6 21 Turkey 1.5 1.2 1.3 1.4 1.6 1.7 1.7 1.9 1.6 1.4 1.2 22 Other Western Europe 1.3 .7 1.0 1.1 .7 .9 .8 .9 1.0 1.6 1.3 23 South Africa 2.4 2.0 2.0 1.9 1.9 1.8 1.8 1.8 1.6 1.9 1.8 24 Australia 1.8 1.6 2.1 1.8 2.0 1.8 1.9 2.0 2.4 2.7 2.3 25 OPEC countries2 16.6 17.1 15.5 15.3 14.2 12.8 17.1 14.0 15.6 14.6 16.0 26 Ecuador 1.7 1.3 1.2 1.1 1.1 1.0 .9 .9 .8 .7 .7 27 Venezuela 7.9 7.0 6.1 6.0 6.0 5.0 5.1 5.3 5.6 5.4 5.4 28 Indonesia 1.7 2.0 2.1 2.0 2.3 2.7 2.8 2.6 2.8 2.8 3.3 29 Middle East countries 3.4 5.0 4.3 4.4 3.1 2.5 6.6 3.7 5.0 4.2 5.3 30 African countries 1.9 1.7 1.8 1.8 1.7 1.7 1.6 1.5 1.5 1.5 1.4 31 Non-OPEC developing countries 85.3 77.5 68.8 66.7 67.1 65.4 66.4 65.0 65.0* 64.3 70.5 Latin America 32 Argentina 9.0 6.3 5.6 5.2 5.0 5.0 4.7 4.6 4.5* 4.8 5.0 33 Brazil 22.4 19.0 17.5 16.7 15.4 14.4 13.9 11.6 10.5 9.5 10.8 34 Chile 5.6 4.6 4.3 3.7 3.6 3.5 3.6 3.6 3.7 3.6 3.9 35 Colombia 2.1 1.8 1.8 1.7 1.8 1.8 1.7 1.6 1.6 1.7 1.6 36 Mexico 18.8 17.7 12.8 12.6 12.8 13.0 13.7 14.3 16.2 15.5 18.2 37 Peru .8 .6 .5 .5 .5 .5 .5 .5 .4 .4 .4 38 Other 2.6 2.8 2.8 2.3 2.4 2.3 2.2 2.0 1.9 2.1 2.2 Asia China 39 Mainland .3 .3 .3 .2 .2 .2 .4 .6 .4 .3 .3 40 Taiwan 3.7 4.5 3.8 3.6 4.0 3.5 3.6 4.1 4.1 4.1 4.7 41 India 2.1 3.1 3.5 3.6 3.6 3.3 3.5 3.0 2.8 3.0 3.6 42 Israel 1.2 .7 .6 .7 .6 .5 .5 .5 .5 .5 .4 43 Korea (South) 6.1 5.9 5.3 5.6 6.2 6.2 6.8 6.9 6.5 6.8 6.9 44 Malaysia 1.6 1.7 1.8 1.8 1.8 1.9 2.0 2.1 2.3 2.3 2.5 45 Philippines 4.5 4.1 3.7 3.9 3.9 3.8 3.7 3.7 3.6 3.7 3.6 46 Thailand 1.1 1.3 1.1 1.3 1.5 1.5 1.6 1.7 1.9 1.7 1.7 47 Other Asia3 .9 1.0 1.2 1.1 1.6 1.7 2.1 2.3 2.3 2.4 2.7 Africa 48 Egypt .4 .4 .4 .5 .4 .4 .4 .4 .4 .4 .3 49 Morocco .9 .9 .9 .9 .9 .8 .8 .7 .7 .7 .7 50 Zaire .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 51 Other Africa3 1.1 1.0 .9 .8 .8 1.0 .8 .8 .8 .7 .7 52 Eastern Europe 3.6 3.5 3.3 2.9 2.7 2.3 2.1 2.1 1.8 2.4 2.9 53 U.S.S.R .7 .7 .8 .4 .4 .2 .3 .4 .4 .9 1.4 54 Yugoslavia 1.8 1.6 1.4 1.4 1.3 1.2 1.0 1.0 .8 .9 .8 55 Other 1.1 1.3 1.2 1.1 1.1 .9 .8 .7 .7 .7 .6 56 Offshore banking centers 44.2 36.6 43.1 40.3 42.6 42.5 50.2 48.5 52.6* 52.0 58.1 57 Bahamas 11.0 5.5 9.2 8.5 8.9 2.8 8.4 6.8 6.7* 12.0 14.0 58 Bermuda .9 1.7 1.2 2.5 4.5 4.4 4.4 4.2 7.1 2.2 3.9 59 Cayman Islands and other British West Indies 12.9 9.0 10.9 8.5 9.3 11.5 14.2 15.1 14.1 15.9 17.1 60 Netherlands Antilles 1.0 2.3 2.6 2.3 2.2 7.9 1.1 1.4 3.5 1.2 1.0 6 6 1 2 P L a e n b a a m no a n 2.5 J 1.4| 1.3 J 1.4| 1.5 J 1 . . 4| 1 1.4 1.3 1.3 1.3 1.3 63 Hong Kong 9^6 9.7 9^8 io!o 8/7 7.7 1L6 12 A 12! 1 12.2 12.2 64 Singapore 6.1 7.0 8.0 7.0 7.5 6.6 8.9 7.2 7.7 7.1 8.5 65 Other5 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 66 Miscellaneous and unallocated6 22.6 30.3 33.3 34.5 38.1 39.8 36.5 40.0 44.7 48.3 48.1 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. Organization of Petroleum Exporting Countries, shown individually; other (2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, adjusted to exclude the claims on foreign branches held by a U.S. office or another Saudi Arabia, and United Arab Emirates); and Bahrain and Oman (not formally foreign branch of the same banking institution. The data in this table combine 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 Type and area or country 11998888 11998899 11999900 Sept. Dec. Mar. June Sept. Dec. 1 Total 32,952 38,764 43,417 45,614 43,417 40,982 39,794 40,653 40,823 2 Payable in dollars 27,335 33,973 38,535 40,034 38,535 36,415 35,317 36,174 36,098 3 Payable in foreign currencies 5,617 4,791 4,882 5,580 4,882 4,566 4,477 4,479 4,725 By type 4 Financial liabilities 14,507 17,879 18,467 20,347 18,467 17,557 17,280 18,175 18,690 5 Payable in dollars 10,608 14,035 14,737 16,059 14,737 14,188 13,928 14,686 15,186 6 Payable in foreign currencies 3,900 3,844 3,730 4,288 3,730 3,369 3,352 3,489 3,504 7 Commercial liabilities 18,445 20,885 24,949 25,267 24,949 23,424 22,515 22,478 22,133 8 Trade payables 6,505 8,070 10,494 10,960 10,494 8,842 8,699 9,039 9,018 9 Advance receipts and other liabilities .. 11,940 12,815 14,456 14,306 14,456 14,583 13,815 13,439 13,115 10 Payable in dollars 16,727 19,938 23,798 23,974 23,798 22,227 21,390 21,488 20,912 11 Payable in foreign currencies 1,717 947 1,152 1,292 1,152 1,197 1,125 990 1,221 By area or country Financial liabilities 12 Europe 9,962 11,660 9,866 11,299 9,866 9,219 9,318 9,835 9,900 13 Belgium-Luxembourg 289 340 344 350 344 285 297 347 162 14 France 359 258 700 463 700 632 556 416 1,247 15 Germany 699 464 622 606 622 561 659 654 658 16 Netherlands 880 941 990 942 990 945 917 943 932 17 Switzerland 1,033 541 576 628 576 577 535 510 316 18 United Kingdom 6,533 8,818 6,024 7,679 6,024 5,579 5,731 6,397 5,955 19 Canada 388 610 229 309 229 278 293 305 268 20 Latin America and Caribbean 839 1,357 3,400 3,560 3,400 3,636 3,308 3,472 3,854 21 Bahamas 184 157 371 395 371 392 375 314 512 22 Bermuda 0 17 0 0 0 0 12 0 0 23 Brazil 0 0 0 0 0 0 0 1 1 24 British West Indies 645 724 2,407 2,548 2,407 2,674 2,319 2,555 2,737 25 Mexico 1 6 5 4 5 6 6 6 8 26 Venezuela 0 0 4 0 4 4 4 4 4 27 Asia 3,312 4,151 4,562 4,697 4,562 4,420 4,350 4,559 4,610 28 Japan 2,563 3,299 3,360 3,562 3,360 3,347 3,297 3,530 3,533 29 Middle East oil-exporting countries'2 . 3 2 5 4 5 1 4 19 13 30 Africa 2 2 2 2 2 2 9 3 6 0 0 0 0 0 0 7 2 4 31 Oil-exporting countries3 4 100 409 479 409 2 2 1 52 32 All other4 Commercial liabilities 7,319 9,071 10,310 10,039 10,310 9,826 8,835 8,976 8,726 33 Europe 158 175 275 245 275 263 254 229 247 34 Belgium-Luxembourg 455 877 1,218 1,270 1,218 1,214 1,246 999 880 35 France 1,699 1,392 1,270 1,051 1,270 1,389 1,044 914 943 36 Germany 587 710 844 699 844 730 745 750 704 37 Netherlands 417 693 775 746 775 661 586 490 471 38 Switzerland 2,079 2,620 2,792 2,839 2,792 2,813 2,328 3,071 3,168 39 United Kingdom 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 1,646 1,512 1,351 42 Bahamas 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 Mexico 217 323 475 592 475 346 364 290 302 47 Venezuela 114 164 130 165 130 126 121 101 93 48 Asia 6,915 7,550 9,471 9,533 9,471 8,623 8,818 8,869 9,233 49 Japan 3,094 2,914 3,639 3,356 3,639 3,412 3,394 3,317 3,610 50 Middle East oil-exporting countries'1'3 1,385 1,632 2,016 2,728 2,016 1,568 1,699 1,808 1,496 51 Africa 576 886 841 1,334 841 655 594 835 761 52 Oil-exporting countries3 202 339 422 610 422 225 224 356 357 53 All other4 1,328 1,030 1,406 1,408 1,406 1,468 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. 4. Includes nonmonetary international and regional organizations. 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and 5. Revisions include a reclassification of transactions, which also affects the United Arab Emirates (Trucial States). totals for Asia and the grand totals. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 International Statistics • August 1992 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1990 1991 Type, and area or country 11998888 11998899 11999900 Sept. Dec. Mar. June Sept. Dec. 1 Total 33,805 33,173 35,008 32,387 35,008 35,213 36,837 37,898 41,330 2 Payable in dollars 31,425 30,773 32,499 29,902 32,499 32,945 34,779 35,585 38,890 3 Payable in foreign currencies 2,381 2,400 2,509 2,485 2,509 2,268 2,058 2,313 2,440 By type 4 Financial claims 21,640 19,297 19,609 17,865 19,609 19,498 20,741 22,221 24,484 5 Deposits 15,643 12,353 13,495 11,916 13,495 12,907 12,417 16,055 17,018 6 Payable in dollars 14,544 11,364 12,400 10,640 12,400 11,901 11,644 15,070 16,209 7 Payable in foreign currencies 1,099 989 1,095 1,276 1,095 1,006 773 985 809 8 Other financial claims 5,997 6,944 6,114 5,949 6,114 6,590 8,325 6,166 7,466 9 Payable in dollars 5,220 6,190 5,247 5,2% 5,247 5,894 7,637 5,493 6,646 10 Payable in foreign currencies 777 754 866 652 866 6% 688 673 820 11 Commercial claims 12,166 13,876 15,400 14,522 15,400 15,715 16,095 15,677 16,846 12 Trade receivables 11,091 12,253 13,521 12,744 13,521 13,649 13,912 13,235 14,104 13 Advance payments and other claims . 1,075 1,624 1,878 1,778 1,878 2,066 2,183 2,442 2,742 14 Payable in dollars 11,660 13,219 14,852 13,966 14,852 15,150 15,498 15,022 16,035 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 9,013 9,505 10,588 11,821 13,029 13,366 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 120 152 367 142 367 312 298 434 337 20 Netherlands 348 238 265 264 265 380 429 420 386 21 Switzerland 217 153 357 228 357 422 433 580 589 22 United Kingdom 9,039 7,4% 7,838 7,980 7,838 8,981 10,184 10,905 11,160 23 Canada 2,325 1,904 2,904 2,006 2,904 1,850 1,986 2,084 2,565 24 Latin America and Caribbean 8,160 8,020 6,0% 6,107 6,0% 6,161 5,849 6,118 7,561 25 Bahamas 1,846 1,890 1,594 1,443 1,594 1,847 1,031 1,396 11,,771177 26 Bermuda 19 7 3 4 3 6 4 19 88 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 5,327 29 Mexico 151 94 177 158 177 179 161 173 182 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 countries3 10 12 0 7 0 3 1 1 1 36 All other4 148 180 206 158 206 268 275 292 311 Commercial claims 5,181 6,209 7,038 6,497 7,038 7,041 7,434 6,863 7,814 37 Europe 189 242 212 188 212 226 220 186 192 38 Belgium-Luxembourg 672 964 1,240 1,206 1,240 1,273 1,388 1,328 1,538 39 France 669 6% 806 642 806 870 953 852 931 40 Germany 212 479 555 491 555 604 707 641 637 41 Netherlands 344 313 301 300 301 324 2% 259 287 42 Switzerland 1,324 1,575 1,774 1,673 1,774 1,636 1,813 1,803 2,062 43 United Kingdom 44 Canada 983 1,091 1,073 1,152 1,073 1,211 1,240 1,231 1,134 45 Latin America and Caribbean 2,241 2,184 2,371 2,408 2,371 2,314 2,418 22,,448899 2,552 46 Bahamas 36 58 14 25 14 15 16 88 11 47 Bermuda 230 323 246 340 246 231 245 255 263 48 Brazil 299 297 324 252 324 309 297 384 388 49 British West Indies 22 36 40 35 40 49 43 37 41 50 Mexico 461 508 661 652 661 653 711 740 827 51 Venezuela 227 147 192 224 192 181 195 1% 201 52 Asia 2,993 3,570 4,064 3,659 4,064 4,282 4,123 4,209 4,466 53 Japan 946 1,199 1,399 1,223 1,399 1,756 1,582 1,742 1,786 54 Middle East oil-exporting countries' 453 518 460 408 460 497 500 495 633 55 Africa . 435 429 488 372 488 394 428 431 417 56 Oil-exporting countries3 122 108 67 72 67 68 63 80 95 57 All other4 333 393 366 434 366 473 452 454 463 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.- Oct. Nov. Dec. Jan. Feb. Mar.r Apr.P Apr. U.S. corporate securities STOCKS 1 Foreign purchases 173,293 210,782 81,164 17,201 20,587 14,729 23,302 21,429r 18,884 17,549 188,419 199,598 84,596 16,791 19,594 17,446 25,900 21,193r 19,457 18,046 2 Foreign sales -15,126 11,183 -3,432 410 993 -2,717 -2,598 236r -573 -497 3 Net purchases, or sales (-) ... -15,197 10,615 -3,367 365 956 -2,700 -2,479 237r -595 -530 4 Foreign countries -8,479 182 -2,246 -452 -238 -1,883 -1,318 -105 -95 -728 5 Europe -1,234 18 -4% -21 -50 -125 -28 -224 -27 -217 6 France -367 -63 -222 12 22 44 -160 30 -45 -47 7 Germany -397 -228 -125 6 -42 -52 44 -114 -17 -38 8 Netherlands -2,866 -139 370 -93 -508 -7 -286 304 261 91 9 Switzerland -2,980 -222 -1,756 -216 254 -1,637 -882 -304 -236 -334 10 United Kingdom 886 3,809 1,316 385 694 131 260 235r 410 411 11 Canada -1,330 2,177 1,107 366 -197 -280 1,025 359 -322 45 12 Latin America and Caribbean . -2,435 -126 -144 -6 39 -35 -271 101 121 -95 13 Middle East1 -3,477 4,263 -3,651 267 735 -665 -2,211 -396 -886 -158 14 Other Asia -2,891 1,181 -3,623 156 158 -429 -2,194 -615 -4% -318 15 Japan -63 153 31 20 14 7 13 15 4 -1 16 Africa -298 158 220 -215 -91 25 23 28 173 -4 17 Other countries 18 Nonmonetary international and regional organizations 71 568 -65 45 37 -17 -119 -1 22 33 19 Foreign purchases BONDS2 118,764 152,815 68,486 12,844 16,035 15,092 16,498 18,045r 17,338 16,605 20 Foreign sales 102,047 125,146 54,757 10,709 13,051 12,348 14,367 14,731 14,321 11,338 21 Net purchases, or sales (—) ... 16,717 27,669 13,729 2,135 2,984 2,744 2,131 3,314r 3,017 5,267 22 Foreign countries 17,187 27,800 13,405 2,198 2,883 2,701 2,098 3,308r 2,927 5,072 23 Europe 10,079 13,651 7,175 1,722 1,284 1,084 1,390 2,390"" 1,201 2,194 2 2 2 5 6 4 F G N r e e a r t n h m c e a e r n la y n ds -3 3 1 7 7 7 7 3 2 1, 4 8 5 8 5 7 2 4 7 - 1 2 ,3 3 4 8 8 0 5 5 - 2 2 4 1 5 4 3 2 1 7 9 1 4 1 0 1 7 1 1 5 3 3 -1 5 - 1 9 2 3 4 27 5 1 7 8 2 r - - 1 1 3 2 5 4 2 -1 3 3 2 9 6 4 2 3 27 Switzerland 284 572 -50 -64 -449 73 -67 252 124 -359 28 United Kingdom 10,383 9,239 5,155 1,878 714 184 905 i,8or 758 1,691 29 Canada 1,906 1,340 -42 86 51 114 -153 97 -72 86 30 Latin America and Caribbean . 4,291 2,446 3,342 -365 110 624 506 768 1,456 612 31 Middle East1 76 2,185 369 182 313 253 -75 -71 257 258 32 Other Asia 1,083 8,237 2,400 526 1,164 543 339 101 121 1,839 33 Japan 727 5,730 507 237 874 149 257 -121 -316 687 34 Africa % 56 90 12 13 11 28 15 28 19 35 Other countries -344 -115 71 35 -52 72 63 8 -64 64 36 Nonmonetary international and regional organizations -471 -131 324 -63 101 43 33 6 90 195 Foreign securities 37 Stocks, net purchases, or sales (-)3 -9,205 -31,446 -10,354 -2,381 -2,016 -1,716 -2,554 -2,301r -2,941 -2,558 38 Foreign purchases 122,641 119,853 46,987 11,310 13,155 11,015 12,485 10,645r 12,823 11,034 39 Foreign sales3 131,846 151,299 57,341 13,691 15,171 12,731 15,039 12,946r 15,764 13,592 40 Bonds, net purchases, or sales (-) -22,412 -15,842 -2,865 -4,721 779 -1,839 -1,389 417r -614 -1,279 41 Foreign purchases 314,645 324,809 130,675 33,240 29,938 26,296 35,511 33,049"^ 32,287 29,828 42 Foreign sales 337,057 340,652 133,540 37,961 29,159 28,135 36,900 32,632r 32,901 31,107 43 Net purchases, or sales (-), of stocks and bonds -31,617 -47,288 -13,219 -7,102 -1,237 -3,555 -3,943 —l,884r -3,555 -3,837 44 Foreign countries -28,943 -47,054 -15,124 -6,766 -1,680 -3,925 -4,194 —2,049r -3,889 -4,992 4 4 4 4 4 5 5 6 7 8 9 0 C L A E A O a u a f s th t r n i r i a i o e a n c r p d a e A a c o m u e n r t i r c i a e s a nd Caribbean - - - - 7 8 8 3 - - , , , , 1 1 5 8 4 8 3 8 0 5 4 2 7 0 2 4 3 8 -3 - - 7 7 4 1 , , , 6 1 , 3 8 2 - 3 7 1 3 4 8 6 7 3 7 3 -1 - - 1 1 1 - - , , , 8 7 0 4 0 - 5 4 8 2 2 5 2 0 3 3 1 - - 5 1 - , , 1 7 6 5 2 9 0 1 0 4 8 0 9 4 6 1 -4 1 , - , 8 5 6 9 4 9 0 9 7 8 1 8 5 1 5 8 -4 - , 4 3 3 3 1 7 2 9 1 5 8 6 8 6 6 9 -4 2 - - , , 8 9 - 6 1 4 - 1 0 0 8 5 5 8 5 4 3 - - 2 1 - l , , , 2 2 - 5 3 7 1 7 6 1 0 0 0 2 3 6 4 8 r r -1 - - - - , 6 3 4 8 5 5 2 7 5 7 3 1 9 8 9 1 -3 - - - , 8 8 2 2 1 3 2 1 9 6 4 9 4 3 9 9 51 Nonmonetary international and regional organizations -2,673 -234 1,905 -336 443 370 251 165 334 1,155 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 • August 1992 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1992 1991 1992 Country or area 1990 1991 J A an pr .- . Oct. Nov. Dec. Jan. Feb. Mar.r Apr." Transactions, net purchases or sales (-) during period1 1 Estimated total2 18,927 22,342 11,463 414 5,446 4,483 10,623 3,175R -8,820 6,485 2 Foreign countries2 18,764 22,161 11,479 -171 5,352 3,774 9,866 3,558r -9,451 7,506 3 Europe2 18,455 9,507 10,876 228 5,023 2,779 5,324 7,326 -4,903 3,129 4 Belgium-Luxembourg 10 523 753 1 201 -21 559 296 -91 -11 5 Germany 5,880 -4,725 1,189 326 707 -139 805 287 -313 410 6 Netherlands 1,077 -3,735 -2,877 549 -25 -888 -1,936 -967 245 -219 7 Sweden 1,152 -662 459 46 -74 582 180 300 102 -123 8 Switzerland2 112 1,005 -657 195 1,105 -778 142 -388 -411 0 9 United Kingdom -1,260 5,647 9,820 -311 212 2,349 2,649 6,234 -1,844 2,781 10 Other Western Europe 11,463 11,440 2,139 -578 2,910 1,664 2,925 1,524 -2,601 291 11 Eastern Europe 13 13 50 0 -13 10 0 40 10 0 12 Canada -4,627 -2,746 -830 -838 -441 -1,841 964 -1,549" -430 185 13 Latin America and Caribbean 14,734 11,539 -1,882 -2,086 -3,842 1,075 -2,920 -1,191 -554 2,783 14 Venezuela 33 10 384 20 7 122 266 169 73 -124 15 Other Latin America and Caribbean 3,943 5,316 2,718 -14 -525 -1,065 -357 -444 -108 3,627 16 Netherlands Antilles 10,757 6,213 -4,984 -2,092 -3,324 2,018 -2,829 -916 -519 -720 17 Asia -10,952 3,471 5,280 3,467 3,709 864 7,675 -430 -3,322 1,357 18 Japan -14,785 -4,034 -4,717 4,111 503 -1,332 -398 -1,933 -3,044 658 19 Africa 313 689 625 39 -26 318 207 100 125 193 20 All other 842 -299 -2,590 -981 929 579 -1,384 -698 -367 -141 21 Nonmonetary international and regional organizations 163 181 -16 585 94 709 757 -383 631 -1,021 22 International 287 -355 8 287 95 786 197 -228 801 -762 23 Latin American regional -2 -72 67 72 -133 -156 -58 51 0 74 MEMO 24 Foreign countries 18,764 22,161 11,479 -171 5,352 3,774 9,866 3,558r -9,451 7,506 25 Official institutions 23,218 5,200 7,024 512 7,194 2,521 8,687 -193 -3,136 1,666 26 Other foreign2 -4,453 16,961 4,455 -683 -1,842 1,253 1,179 3,751r -6,315 5,840 Oil-exportine countries 27 Middle EasP -387 -6,822 3,091 313 96 -163 623 1,679 233 556 28 Africa4 0 239 63 0 0 219 48 0 0 15 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 BANKS1 Percent per year Rate on June 30, 1992 Rate on June 30, 1992 Rate on June 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 v e Percent e M ffe o c n t t i h v e Austria.. 8.0 Dec. 1991 Germany... 8.0 Dec. 1991 Norway 10.50 July 1990 Belgium . 8.5 Dec. 1991 Italy 12.0 Nov. 1991 Switzerland 1 7.0 Aug. 1991 Canada.. 5.85 June 1992 Japan 3.75 Apr. 1992 United Kingdom- Denmark 9.5 Dec. 1991 Netherlands 8.5 Dec. 1991 France .. 9.6 Dec. 1991 1. Rates shown are mainly those at which the central bank either discounts or that the central bank transacts the largest proportion of its credit operations. makes advances against eligible commercial paper or government securities for 2. Since Feb. 1981, the rate has been that at which the Bank of France commercial banks or brokers. For countries with more than one rate applicable to discounts Treasury bills for seven to ten days. such discounts or advances, the rate shown is the one at which it is understood 3. Minimum lending rate suspended as of Aug. 20, 1981. or makes advances 3.27 FOREIGN SHORT-TERM INTEREST RATES1 Averages of daily figures, percent per year 1991 1992 TTyyppee oorr ccoouunnttrryy 11998899 11999900 11999911 Dec. Jan. Feb. Mar. Apr. May June 1 9.16 8.16 5.86 4.48 4.06 4.05 4.26 4.05 3.84 3.87 ? 13.87 14.73 11.47 10.73 10.60 10.33 10.58 10.56 10.00 9.94 3 12.20 13.00 9.07 7.50 7.23 7.42 7.63 7.10 6.60 6.03 4 7.04 8.41 9.15 9.48 9.45 9.51 9.59 9.63 9.70 9.66 5 6.83 8.71 8.01 7.99 7.55 7.28 8.16 8.48 8.77 9.04 6 7.28 8.57 9.19 9.59 9.45 9.52 9.52 9.42 9.43 9.45 7 9.27 10.20 9.49 9.97 9.86 9.93 9.99 9.92 9.83 9.98 8 Italy 12.44 12.11 12.04 12.46 12.00 12.17 12.25 12.38 12.39 13.38 9 8.65 9.70 9.30 9.61 9.41 9.50 9.56 9.50 9.51 9.50 1100 5.39 7.75 7.33 6.02 5.18 5.19 4.95 4.72 4.72 4.60 1. 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 • August 1992 3.28 FOREIGN EXCHANGE RATES1 Currency units per dollar, except as noted 1992 Country/currency unit 1989 1990 1991 Jan. Feb. Mar. Apr. May June 1 Australia/dollar2 79.186 78.069 77.872 74.756 75.178 75.865 76.241 75.587 75.561 2 Austria/schilling 13.236 11.331 11.686 11.108 11.391 11.693 11.620 11.422 11.068 3 Belgium/franc 39.409 33.424 34.195 32.501 33.307 34.189 33.927 33.386 32.362 4 Canada/dollar 1.1842 1.1668 1.1460 1.1571 1.1825 1.1928 1.1874 1.1991 1.1960 5 China, P.R./yuan 3.7673 4.7921 5.3337 5.4618 5.4776 5.4871 5.5098 5.5182 5.4893 6 Denmark/krone 7.3210 6.1899 6.4038 6.1257 6.2763 6.4462 6.3906 6.2678 6.0573 7 Finland/markka 4.2963 3.8300 4.0521 4.2971 4.4230 4.5325 4.5023 4.4076 4.2846 8 France/franc 6.3802 5.4467 5.6468 5.3858 5.5088 5.6400 5.5773 5.4548 5.2940 9 Germany/deutsche mark 1.8808 1.6166 1.6610 1.5788 1.6186 1.6616 1.6493 1.6225 1.5726 10 Greece/drachma 162.60 158.59 182.63 182.42 187.13 192.26 192.83 192.09 190.69 11 Hong Kong/dollar 7.8008 7.7899 7.7712 7.7612 7.7582 7.7463 7.7404 7.7421 7.7343 12 India/rupee 16.213 17.492 22.712 25.863 25.992 28.378 28.896 28.542 28.519 13 Ireland/pound2 141.80 165.76 161.39" 168.73 164.87 160.50 161.65 164.62 169.80 14 Italy/lira 1,372.28 1,198.27 1,241.28 1,189.76 1,215.92 1,248.28 1,241.55 1,220.95 1,189.52 15 Japan/yen 138.07 145.00 134.59 125.46 127.70 132.86 133.54 130.77 126.84 16 Malaysia/ringgit 2.7079 2.7057 2.7503 2.6891 2.6012 2.5779 2.5521 2.5223 2.5187 17 Netherlands/guilder.... 2.1219 1.8215 1.8720 1.7780 1.8218 1.8706 1.8568 1.8268 1.7719 18 New Zealand/dollar2... 59.561 59.619 57.832 54.194 54.177 54.790 54.138 53.514 54.201 19 Norway/krone 6.9131 6.2541 6.4912 6.2044 6.3472 6.5188 6.4606 6.3311 6.1493 20 Portugal/escudo 157.53 142.70 144.77 136.92 139.47 143.26 141.09 135.23 130.79 21 Singapore/dollar 1.9511 1.8134 1.7283 1.6337 1.6361 1.6601 1.6567 1.6408 1.6240 22 South Africa/rand 2.6214 2.5885 2.7633 2.7831 2.8156 2.8830 2.8783 2.8483 2.8077 23 South Korea/won 674.29 710.64 736.73 767.09 769.93 775.68 782.55 786.83 793.60 24 Spain/peseta 118.44 101.96 104.01 100.05 101.73 104.88 103.90 101.47 99.02 25 Sri Lanka/rupee 35.947 40.078 41.200 42.665 42.879 42.744 43.231 43.445 43.941 26 Sweden/krona 6.4559 5.9231 6.0521 5.7461 5.8764 6.0263 5.9667 5.8462 5.6792 27 Switzerland/franc 1.6369 1.3901 1.4356 1.4039 1.4561 1.5094 1.5194 1.4907 1.4250 28 Taiwan/dollar 26.407 26.918 26.759 25.150 25.049 25.407 25.308 25.016 24.770 29 Thailand/baht 25.725 25.609 25.528 25.328 25.463 25.637 25.644 25.550 25.400 30 United Kingdom/poundz 163.82 178.41 176.74 180.90 177.78 172.38 175.66 180.95 185.51 MEMO 31 United States/dollar3 98.60 89.84 86.09 88.04 90.44 89.84 88.30 85.91 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 June 30, 1991 November 1991 A70 September 30, 1991 February 1992 A70 December 31, 1991 May 1992 A70 March 31, 1992 August 1992 A70 Terms of lending at commercial banks May 1991 October 1991 A72 August 1991 December 1991 A70 November 1991 March 1992 A70 February 1992 August 1992 A76 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 March 31, 1991 August 1991 A82 June 30, 1991 November 1991 A80 September 30, 1991 January 1992 A70 March 30, 1992 August 1992 A80 Assets and liabilities of life insurance companies June 30, 1991 December 1991 A79 September 30, 1991 May 1992 A81 December 31, 1991 August 1992 A83 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • August 1992 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities1 Consolidated Report of Condition, March 31, 1992 Millions of dollars, except as noted Banks with foreign offices2 Banks with domestic offices onlv Item Total Total Foreign Domestic Over 100 Under 100 1 Total assets4 3,414,120 1,909,071 429,819 1,557,062 1,148,396 356,653 2 Cash and balances due from depository institutions 279,923 191,912 85,222 106,689 66,727 21,285 3 Cash items in process of collection, unposted debits, and currency and coin 4 79,083 2,100 76,983 34,027 i 4 Cash items in process of collection and unposted debits T n.a. n.a. 61,537 22,718 T 5 Currency and coin 1 n.a. n.a. 15,446 11,309 1 6 Balances due from depository institutions in the United States n.a. 30,233 20,201 10,032 17,584 n.a. 7 Balances due from banks in foreign countries and foreign central banks •1 68,232 62,736 5,496 3,438 1 8 Balances due from Federal Reserve Banks 14,364 185 14,179 11,678 • MEMO 9 Non-interest-bearing balances due from commercial banks in the United States (included in balances due from depository institutions in the United States) n.a. n.a. n.a. 7,414 13,863 8,431 10 Total securities, loans and lease financing receivables, net 2,837,154 1,494,234 n.a. n.a. 1,022,199 320,721 11 Total securities, book value 709,779 297,322 29,306 268,016 292,023 120,434 12 U.S. Treasury securities and U.S. government agency and corporation obligations 542,467 217,139 5,120 212,019 228,819 96,509 13 U.S. Treasury securities n.a. 79,878 4,069 75,809 95,603 n.a. 14 U.S. government agency and corporation obligations n.a. 137,260 1,051 136,209 133,216 n.a. 15 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 156,682 78,363 671 77,691 57,560 20,759 16 All other n.a. 58,898 380 58,518 75,656 n.a. 17 Securities issued by states and political subdivisions in the United States 71,644 22,476 647 21,828 33,957 15,212 18 Other domestic debt securities n.a. 29,170 1,015 28,155 23,687 n.a. 19 All holdings of private certificates of participation in pools of residential mortgages 3,376 2,048 8 2,040 1,153 175 20 All other domestic debt securities 56,770 27,122 1,007 26,115 22,534 7,114 21 Foreign debt securities n.a. 22,501 21,285 1,216 386 n.a. 22 Equity securities 12,635 6,036 1,239 4,798 5,175 1,424 23 Marketable 6,658 2,311 267 2,044 3,281 1,066 24 Investments in mutual funds 4,365 1,379 14 1,365 2,004 982 25 Other 2,408 954 255 699 1,326 128 26 LESS: Net unrealized loss 116 23 2 20 49 44 27 Other equity securities 5,978 3,725 972 2,754 1,894 358 28 Federal funds sold and securities purchased under agreements to resell 158,381 82,342 282 82,060 55,424 20,615 29 Federal funds sold 135,873 63,351 n.a. n.a. 52,076 20,445 30 Securities purchased under agreements to resell 22,508 18,991 n.a. n.a. 3,348 169 31 Total loans and lease financing receivables, gross 2,034,745 1,155,804 205,714 950,090 694,541 184,399 32 LESS: Unearned income on loans 10,080 3,830 1,165 2,666 4,738 1,512 33 Total loans and leases (net of unearned income) 2,024,665 1,151,974 204,550 947,424 689,803 182,888 34 LESS: Allowance for loan and lease losses 55,351 37,084 n.a. n.a. 15,051 3,216 35 LESS: Allocated transfer risk reserves 319 319 n.a. n.a. 0 0 36 EQUALS: Total loans and leases, net 1,968,994 1,114,570 n.a. n.a. 674,752 179,672 Total loans, gross, by category 37 Loans secured by real estate 849,611 409,046 24,217 384,829 342,196 98,369 38 Construction and land development 4 4 4 59,570 30,241 5,876 39 Farmland T I I 2,198 6,646 10,069 40 One-to-four-family residential properties 1 1 i 200,165 181,836 54,408 41 Revolving, open-end loans, extended under lines of credit n.a. n.a. n.a. 37,786 29,387 3,069 42 All other loans 1 1 1 162,379 152,449 51,339 43 Multifamily (five or more) residential properties 1 1 1 11,168 11,651 1,995 44 Nonfarm nonresidential properties • T ? 111,727 111,822 26,021 45 Loans to depository institutions 45,663 35,010 15,384 19,627 10,491 161 46 Commercial banks in the United States n.a. 16,851 572 16,278 9,877 n.a. 47 Other depository institutions in the United States n.a. 1,067 216 851 404 n.a. 48 Banks in foreign countries n.a. 17,093 14,596 2,498 211 n.a. 49 Loans to finance agricultural production and other loans to farmers 33,272 5,323 277 5,046 9,982 17,968 50 Commercial and industrial loans 548,646 388,632 95,044 293,588 127,545 32,469 51 U.S. addressees (domicile) n.a. 313,775 22,158 291,617 126,951 n.a. 52 Non-U.S. addressees (domicile) n.a. 74,858 72,887 1,971 594 n.a. 53 Acceptances of other banks 1,563 930 487 443 348 285 54 U.S. banks n.a. 459 108 351 n.a. n.a. 55 Foreign banks n.a. 471 380 91 n.a. n.a. 56 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 375,566 164,796 18,546 146,250 178,688 32,082 57 Credit cards and related plans 129,192 58,318 n.a. n.a. 69,171 1,704 58 Other (includes single payment and installment) 246,374 106,478 n.a. n.a. 109,517 30,378 59 Obligations (other than securities) of states and political subdivisions in the United States (includes nonrated industrial development obligations) 28,065 15,786 256 15,529 11,005 1,274 60 Taxable 1,573 1,076 131 945 450 47 61 Tax-exempt 26,491 14,710 126 14,584 10,555 1,227 62 All other loans 116,389 106,483 47,357 59,126 8,567 1,339 63 Loans to foreign governments and official institutions n.a. 25,948 25,044 904 94 n.a. 64 Other loans n.a. 80,534 22,312 58,222 8,473 n.a. 65 Loans for purchasing and carrying securities n.a. n.a. n.a. 14,313 1,439 n.a. 66 All other loans n.a. n.a. n.a. 43,909 7,034 n.a. 67 Lease financing receivables 35,970 29,797 4,145 25,652 5,719 453 68 Assets held in trading accounts 78,025 75,997 40.836 35,065 1,820 208 69 Premises and fixed assets (including capitalized leases) 51,970 28,200 I n.a. 17,927 5,842 70 Other real estate owned 28,479 17,654 T n.a. 8,779 2,046 71 Investments in unconsolidated subsidiaries and associated companies 2,944 2,538 i n.a. 339 67 72 Customers' liability on acceptances outstanding 15,773 15,453 n.a. n.a. 308 12 7 7 7 5 3 4 I O N n t e t h t a e n d r g u i a e b s l s f e e r o t a s m ss e o t w s n foreign offices, Edge and agreement subsidiaries, and IBFs 1 n 0 1 . 7 2 a , , . 4 3 9 6 1 0 n 7 . 7 5 a , , . 1 9 1 6 6 6 T 1 1 n n 4 . . 4 a a , . . 9 79 n 2 . 4 5 a , , . 8 4 1 7 8 9 n 6 . , a 0 4 . 4 2 7 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A71 4.20—Continued Banks with domestic Banks with foreign offices offices only Item Total Foreign Domestic Over 100 Under 10 76 Total liabilities, limited-life preferred stock, and equity capital 1,414,120 1,909,071 n.a. n.a. 1,148,396 356,653 77 Total liabilities5 1,176,441 1,793,988 429,817 1,441,981 1,058,537 323,916 78 Limited-life preferred stock 10 0 n a. n.a. 8 2 8 7 0 9 To I t n a d l i d v e id p u o a s l i s ts , partnerships, and corporations .,659 i , 204 1,387 t ,693 3 1 0 8 9 8 , , 4 4 6 3 5 8 1, 9 0 9 7 5 8 , , 3 2 8 2 0 8 9 8 5 9 4 0 , , 5 4 3 7 2 0 3 29 1 1 6 , , 8 9 2 7 8 9 81 U.S. government 3,566 1,622 446 82 States and political subdivisions in the United States 34,894 43,146 20,280 83 Commercial banks in the United States n a. n.a. n a. 23,491 8,665 1,301 84 Other depository institutions in the United States 1 1 3,789 3,978 1,104 85 Banks in foreign countries 5,900 146 n.a. 86 Foreign governments and official institutions 20,019 18,8% 1,123 37 n.a. 87 Certified and official checks 19,599 11,141 1,057 10,084 6,468 1,990 88 All other6 n.a. n a. 101,075 n.a. n.a. 30 89 Total transaction accounts 345,366 262,145 86,399 90 Individuals, partnerships, and corporations 292,149 232,212 76,394 91 U.S. government 2,048 1,347 344 92 States and political subdivisions in the United States 11,225 14,183 6,750 93 Commercial banks in the United States 20,640 6,567 711 94 Other depository institutions in the United States 2,913 1,249 198 95 Banks in foreign countries 5,526 110 n.a. 96 Foreign governments and official institutions 780 9 n.a. 97 Certified and official checks 10,084 6,468 1,990 98 All other n.a. n.a. 14 247,844 147,354 40,894 99 Demand deposits (included in total transaction accounts) 198,485 126,483 36,011 100 Individuals, partnerships, and corporations 1,979 1,207 332 101 U.S. government 7,463 5,316 1,653 102 States and political subdivisions in the United States 20,640 6,544 704 1 10 0 4 3 C O o th m e m r d er e c p i o a s l i b to a r n y k s i n i s n t it t u he ti o U n n s it in ed t h S e t a U te n s i ted States n.a. n a. n.a. 5 2 , , 5 8 2 9 5 0 1,2 1 1 1 7 0 n.a 1 . 9 0 105 Banks in foreign countries 106 Foreign governments and official institutions 778 9 n.a. 107 Certified and official checks 10,084 6,468 1,990 108 All other n.a. n.a. 13 109 Total nontransaction accounts 732,862 692,388 230,580 HO Individuals, partnerships, and corporations 703,231 658,258 215,434 111 U.S. government 1,518 276 102 112 States and political subdivisions in the United States 23,669 28,%3 13,530 113 Commercial banks in the United States 2,851 2,098 590 114 U.S. branches and agencies of foreign banks 265 174 n.a. 115 Other commercial banks in the United States 2,586 1,923 n.a. 116 Other depository institutions in the United States 876 2,730 906 117 Banks in foreign countries 373 36 n.a. 118 Foreign branches of other U.S. banks 4 7 n.a. 119 Other banks in foreign countries 370 29 n.a. 120 Foreign governments and official institutions 344 27 n.a. 121 All other n.a. n.a. 17 246,414 185,676 337 185,339 57,856 2,883 122 Federal funds purchased and securities sold under agreements to repurchase 155,799 121,034 n.a. n.a. 33,654 1,112 123 Federal funds purchased 90,616 64,642 n.a. n.a. 24,202 1,771 124 Securities sold under agreements to repurchase n.a. n a. n.a. 10,407 2,3% 152 125 Demand notes issued to the U.S. Treasury 122,767 96,674 37,606 59,069 25,406 686 126 Other borrowed money 15,830 15,509 3,350 12,160 308 12 127 Banks liability on acceptances executed and outstanding 24,853 23,185 n. a. n.a. 1,575 93 128 Notes and debentures subordinated to deposits n.a. n.a. n.a. 32,831 n.a. n.a. 129 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs 94,418 74,843 n. a. n.a. 16,463 3,111 130 All other liabilities 237,669 115,082 n.a. n.a. 89,851 32,736 131 Total equity capital MEMO 1,173 411 762 1,643 n.a. 132 Holdings of commercial paper included in total loans, gross 66,378 63,880 18,438 133 Total individual retirement accounts (IRA) and Keogh plan accounts 35,918 17,275 603 134 Total brokered deposits 24,467 15,303 581 135 Total brokered retail deposits 1,094 3,757 513 136 Issued in denominations of $100,000 or less 137 Issued in denominations greater than $100,000 and participated out by the 23,372 11,547 67 broker in shares of $100,000 or less 232,952 164,663 39,414 138 Money market deposit accounts (savings deposits; MMDAs) 114,735 109,207 33,450 139 Other savings deposits (excluding MMDAs) 239,116 317 126,789 140 Total time deposits of less than $100,000 122,881 97,989 29,925 141 Time certificates of deposit of $100,000 or more 23,177 3,459 1,002 142 Open-account time deposits of $100,000 or more %,676 112,8% 44,233 143 All negotiable order of withdrawal (NOW) accounts (including Super NOWs)... n. a. n. a. n. a. 830,383 807,178 276,086 144 Total time and savings deposits Quarterly averages 926,233 686,195 181,180 145 Total loans 146 Obligations (other than securities) of states and political subdivisions 16,035 10,914 n.a. in the United States 147 Transaction accounts in domestic offices (NOW accounts, automated transfer service 95,545 111,824 44,252 (ATS) accounts, and telephone and preauthorized transfer accounts) Nontransaction accounts in domestic offices 232,814 161,865 38,302 148 Money market deposit accounts 109,197 103,635 31,488 149 Other savings deposits 128,276 100,192 29,821 150 Time certificates of deposit of $100,000 or more 273,584 325,929 129,211 151 All other time deposits 11,776 224 n.a. n.a. 2,874 8,678 152 Number of banks Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • August 1992 4.21 DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or more or with foreign offices1 Consolidated Report of Condition, March 31, 1992 Millions of dollars, except as noted Members NNoonn-- Item TToottaall mmeemmbbeerrss Total National State 1 Total assets4 2,705,458 2,100,087 1,670,567 429,521 605,371 2 Cash and balances due from depository institutions 173,417 142,158 116,477 25,681 31,259 3 Cash items in process of collection and unposted debits 84,255 74,786 60,671 14,115 9,470 4 Currency and coin 26,754 21,980 18,381 3,599 4,775 5 Balances due from depository institutions in the United States 27,616 17,939 14,294 3,645 9,677 6 Balances due from banks in foreign countries and foreign central banks 8,934 7,042 6,140 902 1,892 7 Balances due from Federal Reserve Banks 25,857 20,412 16,991 3,420 5,445 8 Total securities, loans and lease financing receivables, (net of unearned income) 2,334,751 1,790,206 1,439,857 350,349 544,545 9 Total securities, book value 560,039 419,658 322,210 97,449 140,381 10 U.S. Treasury securities 171,412 122,436 94,364 28,073 48,976 11 U.S. government agency and corporation obligations 269,425 211,058 164,015 47,042 58,368 12 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 135,251 111,804 89,852 21,952 23,447 13 All other 134,174 99,253 74,163 25,090 34,920 14 Securities issued by states and political subdivisions in the United States 55,785 40,433 30,101 10,332 15,352 15 Other domestic debt securities 51,842 38,323 27,507 10,816 13,520 16 All holdings of private certificates of participation in pools of residential mortgages .. 3,194 2,627 2,305 321 567 17 All other 48,649 35,6% 25,201 10,495 12,953 18 Foreign debt securities 1,602 1,030 937 93 572 19 Equity securities 9,972 6,378 5,286 1,093 3,594 20 Marketable 5,325 2,477 2,191 286 2,848 21 Investments in mutual funds 3,370 2,008 1,883 124 1,362 22 Other 2,025 489 325 164 1,535 23 LESS: Net unrealized loss 70 21 18 3 49 24 Other equity securities 4,648 3,902 3,095 807 746 25 Federal funds sold and securities purchased under agreements to resell8 137,484 110,775 85,698 25,078 26,709 26 Federal funds sold 52,076 33,017 29,530 3,487 19,059 27 Securities purchased under agreements to resell 3,348 1,445 1,194 251 1,903 28 Total loans and lease financing receivables, gross 1,644,631 1,264,975 1,036,101 228,875 379,656 29 LESS: Unearned income on loans 7,404 5,203 4,151 1,053 2,201 30 Total loans and leases (net of unearned income) 1,637,227 1,259,772 1,031,950 227,822 377,455 Total loans, gross, by category 31 Loans secured by real estate 727,025 540,269 453,621 86,648 186,757 32 Construction and land development 89,811 68,695 57,178 11,517 21,116 33 Farmland 8,845 5,410 4,655 755 3,435 34 One-to-four-family residential properties 382,001 286,355 241,762 44,594 95,646 35 Revolving, open-end and extended under lines of credit 67,173 51,354 42,983 8,371 15,819 36 All other loans 314,828 235,001 198,779 36,222 79,827 37 Multifamily (five or more) residential properties 22,819 16,845 14,310 2,535 5,974 38 Nonfarm nonresidential properties 223,549 162,964 135,717 27,247 60,585 39 Commercial banks in the United States 26,155 17,432 14,325 3,106 8,724 40 Other depository institutions in the United States 1,254 1,090 988 102 164 41 Banks in foreign countries 2,709 2,497 1,294 1,203 211 42 Finance agricultural production and other loans to farmers 15,028 10,553 9,569 984 4,475 43 Commercial and industrial loans 421,133 341,989 272,642 69,348 79,144 44 U.S. addressees (domicile) 418,569 339,925 271,042 68,882 78,644 45 Non-U.S. addressees (domicile) 2,565 2,065 1,599 465 500 46 Acceptances of other banks9 790 493 298 195 298 47 Of U.S. banks 474 323 146 177 151 48 Of foreign banks 120 89 83 6 31 49 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 324,938 240,422 202,546 37,876 84,516 50 Credit cards and related plans 69,171 42,400 39,886 2,514 26,771 51 Other (includes single payment and installment) 109,517 67,094 56,542 10,552 42,423 52 Loans to foreign governments and official institutions 998 942 868 75 56 53 Obligations (other than securities) of states and political subdivisions in the United States (includes nonrated industrial development obligations) 26,534 21,864 16,244 5,620 4,670 54 Taxable 1,395 1,187 844 343 208 55 Tax-exempt 25,139 20,677 15,400 5,277 4,461 56 Other loans 66,695 61,249 42,263 18,986 5,446 57 Loans for purchasing and carrying securities 15,753 14,203 7,453 6,749 1,550 58 All other loans 50,943 47,046 34,810 12,237 3,8% 59 Lease financing receivables 31,371 26,175 21,443 4,732 5,1% 60 Customers' liability on acceptances outstanding 12,239 11,151 8,193 2,957 1,088 61 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs 44,979 38,763 18,447 20,316 6,216 62 Remaining assets 185,052 156,573 106,039 50,534 28,479 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A73 4.21—Continued Members Total National State 63 Total liabilities and equity capital 2,705,458 2,100,087 1,670,567 429,521 64 Total liabilities3 2,500,519 1,945,033 1,549,370 395,663 65 Total deposits 2,032,760 1,556,265 1,270,657 285,608 66 Individuals, partnerships, and corporations 1,885,850 1,440,262 1,178,109 262,153 67 U.S. government 5,188 4,507 4,027 480 68 States and political subdivisions in the United States 78,040 57,531 47,423 10,108 69 Commercial) banks in the United States 32,156 28,886 23,402 5,484 70 Other depository institutions in the United States ... 7,768 5,255 4,128 1,128 71 Banks in foreign countries 6,046 5,571 3,438 2,133 72 Foreign governments and official institutions 1,160 1,059 704 355 73 Certified and official checks 16,552 13,194 9,428 3,766 74 Total transaction accounts 607,510 481,661 388,264 93,398 75 Individuals, partnerships, and corporations 524,361 410,956 333,067 77,889 76 U.S. government 3,394 2,780 2,423 357 77 States and political subdivisions in the United States 25,409 19,808 16,134 3,674 78 Commercial banks in the United States 27,207 25,385 20,769 4,616 79 Other depository institutions in the United States ... 4,162 3,438 2,694 744 80 Banks in foreign countries 5,636 5,358 3,298 2,060 81 Foreign governments and official institutions 789 742 450 292 82 Certified and official checks 16,552 13,194 9,428 3,766 83 Demand deposits (included in total transaction accounts) 395,199 321,4% 254,628 66,868 84 Individuals, partnerships, and corporations 324,967 260,024 207,000 53.024 85 U.S. government 3,187 2,612 2,267 344 86 States and political subdivisions in the United States .. 12,779 10,786 8,763 2,023 87 Commercial banks in the United States 27,184 25,384 20,769 4,615 88 Other depository institutions in the United States 4,107 3,397 2,653 744 89 Banks in foreign countries 5,634 5,357 3,298 2,059 90 Foreign governments and official institutions 787 741 450 292 91 Certified and official checks 16,552 13,194 9,428 3,766 92 Total nontransaction accounts 1,425,249 1,074,604 882,393 192,211 93 Individuals, partnerships, and corporations 1,361,489 1,029,306 845,042 184,264 94 U.S. government 1,794 1,727 1,603 123 95 States and political subdivisions in the United States 52,631 37,723 31,288 6,435 96 Commercial banks in the United States 4,948 3,500 2,632 868 97 U.S. branches and agencies of foreign banks 439 262 143 119 98 Other commercial banks in the United States 4,510 3,239 2,490 749 99 Other depository institutions in the United States ... 3,606 1,817 1,434 384 100 Banks in foreign countries 410 213 140 73 101 Foreign branches of other U.S. banks 11 10 8 2 102 Other banks in foreign countries . 399 203 132 71 103 Foreign governments and official institutions 371 317 254 64 104 Federal funds purchased and securities sold under agreements to repurchase" 243,195 207,497 144,541 62,956 105 Federal funds purchased 33,654 24,353 20,700 3,653 106 Securities sold under agreements to repurchase 24,202 13,432 11,644 1,787 107 Demand notes issued to the U.S. Treasury 12,803 11,663 8,894 2,769 108 Other borrowed money 84,475 60,707 43,682 17.025 109 Banks liability on acceptances executed and outstanding 12,468 11,380 8,400 2,980 110 Notes and debentures subordinated to deposits 1,575 891 829 63 111 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs . 32,831 26,193 24,183 2,010 112 Remaining liabilities 113,242 %,630 72,368 24,262 113 Total equity capital7 204,939 155,055 121,197 33,858 MEMO 114 Holdings of commercial paper included in total loans, gross 2,405 640 629 11 115 Total individual retirement (IRA) and Keogh plan accounts 130,258 100,142 82,429 17,713 116 Total brokered deposits 53,194 38,708 33,250 5,458 117 Total brokered retail deposits 39,770 28,353 24,253 4,100 118 Issued in denominations of $100,000 or less 4,851 1,837 1,692 145 119 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 34,919 26,516 22,561 3,955 120 Money market deposit accounts (savings deposits; MMDAs) 397,615 313,285 257,358 55,928 121 Other savings accounts 223,942 172,082 130,158 41,924 122 Total time deposits of less than $100,000 556,186 409,179 343,525 65,654 123 Time certificates of deposit of $100,000 or more 220,871 158,646 138,087 20,559 124 Open-account time deposits of $100,000 or more 26,636 21,412 13,266 8,146 125 All negotiable order of withdrawal (NOW) accounts (including Super NOWs) 209,572 158,484 132,150 26,334 126 Total time and savings deposits 1,637,561 1,234,770 1,016,029 218,741 Quarterly averages 127 Total loans 1,612,428 1,238,007 1,013,991 224,016 128 Obligations (other than securities) of states and political subdivisions in the United States 26,949 22,379 16,524 5,855 129 Transaction accounts (NOW accounts, automated transfer service (ATS) accounts, and telephone preauthorized transfer accounts) 207,369 156,792 130,947 25,845 Nontransaction accounts 130 Money market deposit accounts 394,678 311,577 254,787 56,789 131 Other savings deposits 212,832 163,594 123,478 40,116 132 Time certificates of deposits of $100,000 or more 228,468 163,765 141,528 22,237 133 All other time deposits 599,513 444,701 368,501 76,200 134 Number of banks 3,098 1,656 1,388 268 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • August 1992 4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities1 Consolidated Report of Condition, March 31, 1992 Millions of dollars, except as noted Members NNoonn-- Item TToottaall mmeemmbbeerrss Total National State 1 Total assets4 3,062,112 2,238,015 1,778,456 459,559 824,0% 2 Cash and balances due from depository institutions 194,701 150,723 123,290 27,433 43,979 3 Currency and coin 29,883 23,208 19,351 3,857 6,674 4 Non-interest-bearing balances due from commercial banks 29,708 16,965 13,178 3,786 12,743 5 Other 135,111 110,550 90,760 19,789 24,561 6 Total securities, loans, and lease financing receivables (net of unearned income) 2,658,687 1,915,120 1,537,395 377,726 743,567 7 Total securities, book value 680,473 466,587 360,036 106,551 213,886 8 U.S. Treasury securities and U.S. government agency and corporation obligations 537,347 371,692 289,288 82,404 165,655 9 Securities issued by states and political subdivisions in the United States 70,997 45,826 34,305 11,521 25,171 10 Other debt securities 60,733 42,016 30,601 11,415 18,717 11 All holdings of private certificates of participation in pools of residential mortgages .. 3,368 2,700 2,353 348 668 12 All other 57,365 39,316 28,248 11,068 18,049 13 Equity securities 11,397 7,053 5,842 1,211 4,344 14 Marketable 6,391 2,902 2,563 339 3,488 15 Investments in mutual funds 4,352 2,428 2,250 179 1,924 16 Other 2,153 511 345 165 1,642 17 LESS: Net unrealized loss 114 37 32 5 77 18 Other equity securities 5,006 4,151 3,279 872 855 19 Federal funds sold and securities purchased under agreements to resell8 158,099 119,508 92,469 27,039 38,591 20 Federal funds sold 72,522 41,702 36,259 5,443 30,820 21 Securities purchased under agreements to resell 3,517 1,493 1,236 256 2,024 22 Total loans and lease financing receivables, gross 1,829,031 1,334,825 1,089,502 245,323 494,206 23 LESS: Unearned income on loans 8,916 5,799 4,611 1,188 3,117 24 Total loans and leases (net of unearned income) 1,820,115 1,329,026 1,084,890 244,135 491,089 Total loans, gross, by category 25 Loans secured by real estate 825,394 577,099 481,686 95,413 248,295 26 Construction and land development 95,687 71,070 58,926 12,143 24,617 27 Farmland 18,913 8,555 7,163 1,392 10,358 28 One-to-four-family residential properties 436,409 306,874 257,272 49,602 129,535 29 Revolving, open-end loans, and extended under lines of credit 70,242 52,693 43,941 8,752 17,549 30 All other loans 366,167 254,181 213,330 40,851 111,986 31 Multifamily (five or more) residential properties 24,814 17,603 14,880 2,723 7,211 32 Nonfarm nonresidential properties 249,570 172,997 143,444 29,553 76,573 33 Loans to depository institutions 30,279 21,088 16,665 4,423 9,191 34 Loans to finance agricultural production and other loans to farmers 32,995 16,686 14,470 2,216 16,309 35 Commercial and industrial loans 453,602 355,210 282,474 72,736 98,392 36 Acceptances of other banks 1,075 600 387 212 475 37 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 357,020 252,815 212,161 40,653 104,205 38 Credit cards and related plans 70,874 43,109 40,484 2,625 27,765 39 Other (includes single payment installment) 139,895 78,777 65,560 13,218 61,118 40 Obligations (other than securities) of states and political subdivisions in the United States 27,808 22,304 16,601 5,702 5,505 41 Taxable 1,442 1,204 858 346 239 42 Tax-exempt 26,366 21,100 15,743 5,357 5,266 43 All other loans 69,033 62,697 43,486 19,211 6,336 44 Lease financing receivables 31,824 26,327 21,571 4,756 5,497 45 Customers' liability on acceptances outstanding 12,251 11,160 8,201 2,959 1,091 46 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs 44,979 38,763 18,447 20,316 6,216 47 Remaining assets 196,472 161,012 109,570 51,442 35,460 48 Total liabilities and equity capital 3,062,112 2,238,015 1,778,456 459,559 824,096 49 Total liabilities5 2,824,435 2,070,568 1,647,613 422,955 753,867 50 Total deposits 2,349,739 1,678,927 1,366,735 312,192 670,812 51 Individuals, partnerships, and corporations 2,177,678 1,553,407 1,266,781 286,625 624,271 52 U.S. government 5,634 4,662 4,152 511 972 53 States and political subdivisions in the United States 98,320 64,773 53,292 11,481 33,547 54 Commercial banks in the United States 33,457 29,757 23,861 5,895 3,700 55 Other depository institutions in the United States 8,872 5,650 4,421 1,230 3,222 56 Certified and official checks 18,541 14,036 10,084 3,952 4,505 57 Mother 7,236 6,642 4,144 2,498 594 58 Total transaction accounts 693,910 516,492 415,910 100,582 177,418 59 Individuals, partnerships, and corporations 600,755 441,688 357,607 84,081 159,067 60 U.S. government 3,738 2,898 2,522 377 840 61 States and political subdivisions in the United States 32,159 22,193 18,109 4,084 9,966 62 Commercial banks in the United States 27,918 26,035 21,067 4,968 1,884 63 Other depository institutions in the United States 4,360 3,534 2,771 763 826 64 Certified and official checks 18,541 14,036 10,084 3,952 4,505 65 All other 6,439 6,109 3,751 2,358 330 66 Demand deposits (included in total transaction accounts) 436,092 338,643 267,962 70,680 97,449 67 Individuals, partnerships, and corporations 360,979 274,876 218,718 56,158 86,102 68 U.S. government 3,519 2,728 2,364 364 792 69 States and political subdivisions in the United States 14,433 11,374 9,252 2,122 3,058 70 Commercial banks in the United States 27,888 26,033 21,066 4,966 1,855 71 Other depository institutions in the United States 4,297 3,488 2,728 761 809 72 Certified and official checks 18,541 14,036 10,084 3,952 4,505 73 Allother 6,435 6,107 3,750 2,357 328 74 Total nontransaction accounts 1,655,829 1,162,435 950,825 211,610 493,394 75 Individuals, partnerships, and corporations 1,576,923 1,111,719 909,174 202,545 465,204 76 U.S. government 1,896 1,764 1,630 134 132 77 States and political subdivisions in the United States 66,162 42,580 35,183 7,397 23,581 78 Commercial banks in the United States 5,539 3,722 2,794 928 1,817 79 Other depository institutions in the United States 4,512 2,116 1,649 467 2,3% 80 All other 798 534 394 140 264 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A75 4.22—Continued Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 81 Federal funds purchased and securities sold under agreements to repurchase10 246,078 208,859 145,508 63,351 37,219 82 Federal funds purchased 34,765 24,978 21,103 3,875 9,787 83 Securities sold under agreements to repurchase 25,973 14,168 12,209 1,959 11,805 84 Demand notes issued to the U.S. Treasury 12,956 11,722 8,945 2,778 1,233 85 Other borrowed money 85,161 60,970 43,895 17,075 24,191 86 Banks liability on acceptances executed and outstanding 12,480 11,390 8,408 2,981 1,091 87 Notes and debentures subordinated to deposits 1,668 909 838 71 759 88 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs 32,831 26,193 24,183 2,010 6,638 89 Remaining liabilities 116,353 97,792 73,284 24,507 18,562 90 Total equity capital7 237,677 167,447 130,843 36,604 70,229 MEMO 91 Assets held in trading accounts 37,093 35,864 21,924 13,940 1,229 92 U.S. Treasury securities 19,863 19,813 10,460 9,353 50 93 U.S. government agency corporation obligations 4,040 3,826 3,441 385 214 94 Secunties issued by states and political subdivisions in the United States 1,333 1,295 1,016 278 38 95 Other bonds, notes, and debentures 448 386 237 149 61 96 Certificates of deposit 997 997 707 290 0 97 Commercial paper 173 173 173 0 0 98 Bankers acceptances 2,621 2,506 1,788 718 114 99 Other 6,614 6,390 3,666 2,724 224 100 Total individual retirement (IRA) and Keogh plan accounts 148,696 107,013 87,831 19,182 41,683 101 Total brokered deposits 53,797 38,926 33,382 5,543 14,871 102 Total brokered retail deposits 40,351 28,565 24,382 4,183 11,786 103 Issued in denominations of $100,000 or less 5,364 2,025 1,809 217 3,339 104 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 34,987 26,539 22,573 3,966 8,447 105 Money market deposit accounts (savings deposits; MMDAs) 437,029 329,608 270,129 59,478 107,421 106 Other savings deposits 257,392 185,183 140,261 44,922 72,209 107 Total time deposits of less than $100,000 682,975 455,414 379,564 75,850 227,561 108 Time certificates of deposit of $100,000 or more 250,7% 170,482 147,332 23,150 80,314 109 Open-account time deposits of $100,000 or more 27,637 21,749 13,538 8,210 5,889 110 All negotiable order of withdrawal (NOW) accounts (including Super NOWs) 253,805 175,740 146,142 29,599 78,065 Ill Total time and savings deposits 1,913,647 1,340,284 1,098,773 241,512 573,362 Quarterly averages 112 Total loans 11,,779933,,660088 11,,330066,,880099 111,,,000666666,,,666222444 222444000,,,111888666 444888666,,,777999999 113 Transaction accounts (NOW accounts, automated transfer service (ATS) accounts, and telephone and preauthorized transfer accounts) 251,622 173,978 144,856 29,122 77,643 Nontransaction accounts 114 Money market deposit accounts 432,980 327,473 267,268 60,205 105,507 115 Other savings deposits 244,320 175,953 133,059 42,894 68,366 116 Time certificates of deposit of $100,000 or more 258,289 175,600 150,754 24,845 82,689 117 All other time deposits 728,724 491,909 405,280 86,629 236,815 118 Number of banks 11,776 4,6% 3,737 959 7,080 1. Effective Mar. 31, 1984, the Report of Condition was substantially revised respondents file the FFIEC 032 or FFIEC 033 Call Report.) The "under 100" for commercial banks. Some of the changes are as follows: (1) Previously, banks column refers to those respondents whose assets, as of June 30 of the previous with international banking facilities (IBFs) that had no other foreign offices were calendar year, were less than $100 million. (These respondents filed the FFIEC considered domestic reporters. Beginning with the Mar. 31, 19154 Call Report 034 Call Report.) these banks are considered foreign and domestic reporters and must file the 4. Because the domestic portion of allowances for loan and lease losses and foreign and domestic report of condition; (2) banks with assets of more than $1 allocated transfer risk reserve are not reported for banks with foreign offices, the billion report additional items; (3) the domestic office of banks with foreign offices components of total assets (domestic) do not add to the actual total (domestic). report far less detail; and (4) banks with assets under $25 million have been 5. Because the foreign portion of demand notes issued to the U.S. Treasury is excused from reporting certain detail items. not reported for banks with foreign offices, the components of total liabilities The "n.a." for some of the items is used to indicate the lesser detail available (foreign) will not add to the actual total (foreign). from banks without foreign offices, the inapplicability of certain items to banks 6. The definition of "all other" varies by report form and therefore by column that have only domestic offices or the absence of detail on a fully consolidated in this table. See the instructions for more detail. basis for banks with foreign offices. 7. Equity capital is not allocated between the domestic and foreign offices of All transactions between domestic and foreign offices of a bank are reported in banks with foreign offices. "net due from" and "net due to." All other lines represent transactions with 8. Only the domestic portion of federal funds sold and securities purchased parties other than the domestic and foreign offices of each bank. Because these under agreements to resell are reported here, therefore, the components do not mtraoffice transactions are nullified by consolidation, total assets and total add to totals. liabilities for the entire bank may not equal the sum of assets and liabilities 9. "Acceptances of other banks" is not reported by domestic banks having less respectively, of the domestic and foreign offices. than $300 million in total assets, therefore the components do not add to totals. 2. Foreign offices include branches in foreign countries, Puerto Rico, and in 10. Only the domestic portion of federal funds purchased and securities sold U.S. territories and possessions; subsidiaries in foreign countries; all offices of are reported here, therefore the components do not add to totals. Edge Act and agreement corporations wherever located and IBFs. 11. Components are reported only for banks with total assets of $1 billion or 3. The 'over 100' column refers to those respondents whose assets, as of June more; therefore the components do not add to the totals for this item. 30 of the previous calendar year, were equal to or exceeded $100 million. (These Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Special Tables • August 1992 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 3-7, 19921 A. Commercial and Industrial Loans Weighted Loan rate (percent) Loans Loans Amount of Average average secured made Partici- Characteristic ($ l 1 o , a 0 n 0 s 0 ) ($1 si ,0 ze 0 0) maturity2 W av e e ig ra h g te e d Standard coll b a y te ral co u m m n e d m n e t r i t- (p p l e a o r t a c i n e o s n n t) Days effective3 (percent) (percent) ALL BANKS 1 Overnight6 7,764,001 8,011 4.72 .20 5.2 60.8 1.3 2 One month and under (excluding overnight) 5,797,117 2,447 19 5.33 28.5 83.4 9.7 3 Fixed rate 4,664,253 4,241 19 5.16 24.4 80.8 7.8 4 Floating rate 1,132,864 893 21 6.01 45.5 94.1 17.7 5 Over one month and under a year . 5,864,338 451 156 5.92 53.1 86.7 14.9 6 Fixed rate 2,531,711 1,004 143 5.38 48.1 78.1 18.3 7 Floating rate 3,332,628 318 165 6.32 56.9 93.2 12.3 8 Demand7 13,640,035 459 5.93 54.9 62.5 14.1 9 Fixed rate 3,753,232 1,539 5.46 42.2 81.5 35.9 10 Floating rate 9,886,804 362 6.11 59.7 55.3 5.9 11 Total short term 33,065,492 718 5.54 38.3 70.1 10.5 12 Fixed rate (thousands of dollars) .. 18,713,1% 2,662 31 5.07 23.2 72.3 12.1 13 1-99 76,310 22 125 8.18 72.1 53.6 1.5 14 100-499 201,634 226 82 6.70 61.0 78.1 7.8 15 500-999 276,298 681 54 5.72 41.7 85.0 14.9 16 1,000-4,999 2,805,798 2,312 35 5.38 28.1 82.2 9.7 17 5,000-9,999 3,124,989 6,737 43 5.02 21.3 70.3 7.3 18 10,000 and over 12,228,168 19,141 26 4.95 21.2 70.3 14.0 19 Floating rate (thousands of dollars) 14,352,295 368 128 6.15 57.9 67.2 8.3 20 1-99 772,859 29 147 7.80 81.3 86.5 2.3 21 100-499 1,795,472 206 150 7.38 74.7 89.5 6.2 22 500-999 1,047,331 661 138 7.12 65.5 89.2 11.8 23 1,000-4,999 2,791,449 1,997 137 6.81 62.0 87.2 15.4 24 5,000-9,999 1,795,123 6,737 113 6.22 49.3 79.9 13.9 25 10,000 and over 6,150,062 26,011 117 5.10 49.5 41.6 4.1 Months 26 Total long term 4,307,012 794 6.38 50.7 83.7 15.2 27 Fixed rate (thousands of dollars) .. 1,384,292 1,054 5.62 45.8 94.3 26.7 28 1-99 19,672 23 9.07 87.9 32.3 3.4 29 100-499 45,698 225 7.78 75.1 68.3 8.6 30 500-999 50,532 698 6.62 53.7 68.9 7.1 31 1,000 and over 1,268,389 6,792 5.45 43.8 97.2 28.4 32 Floating rate (thousands of dollars) 2,922,720 710 6.74 53.0 78.7 9.7 33 1-99 64,042 34 7.84 78.5 66.8 6.8 34 100-499 312,449 225 7.45 73.0 81.8 12.3 35 500-999 250,890 689 7.21 59.3 85.0 19.2 36 1,000 and over 2,295,338 4,992 6.56 48.8 78.0 8.4 Loan rate (percent) Days Effective3 Nominal8 LOANS MADE BELOW PRIME1" 37 Overnight6 7,742,529 8,336 4.71 4.69 5.1 60.8 1.3 38 One month and under (excluding overnight) 5,191,001 5,462 19 5.07 5.05 22.6 82.8 8.1 39 Over one month and under a year 3,567,447 3,175 151 4.97 4.91 40.3 86.5 18.8 40 Demand7 7,456,149 4,648 4.72 4.67 40.8 45.8 12.0 41 Total short term 23,957,127 5,200 4.83 4.79 25.3 64.7 8.7 42 Fixed rate 17,057,358 5,712 29 4.85 4.82 18.0 70.6 10.1 43 Floating rate 6,899,769 4,258 109 4.78 4.73 43.3 50.1 5.1 Months 44 Total long term 1,892,019 3,562 5.03 4.98 48.1 93.4 23.2 45 Fixed rate .. 1,086,069 4,140 5.10 5.03 38.8 98.9 32.8 46 Floating rate 805,950 2,998 4.95 4.90 60.6 86.1 10.3 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets All 4.23—Continued A.—Continued Weighted Loan rate (percent) Loans Loans Characteristic A ( m $ l 1 o o , a u 0 n n 0 s t 0 ) o f A ($ v 1 s e i ,0 z ra e 0 g 0 e ) m av a e tu ra ri g t e y W av e e ig ra h g te e d Standard c s o e l c l b a u y t r e e r d a l co u m m m n a e d m d n e e t i r t - (p P p l e a o a r r t a c t i n i o e c s n n i - t ) Days effective error (percent) (percent) LARGE BANKS 1 Overnight6 6,910,971 1,208 4.72 3.8 1.4 2 One month and under (excluding overnight) 5,337,030 3,520 19 5.30 27.2 82.8 3 Fixed rate 4,348,473 5,455 19 5.15 23.0 80.1 6.8 4 Floating rate 988,558 1,375 20 5.97 45.7 94.7 17.9 5 Over one month and under a year . 4,560,732 818 153 5.78 52.8 86.7 17.1 6 Fixed rate 2,171,362 2,218 149 5.28 48.4 79.7 19.5 7 Floating rate 2,389,370 520 157 6.24 56.9 93.0 14.9 8 Demand7 10,958,268 689 5.78 54.1 56.8 14.6 9 Fixed rate 3,218,054 1,902 5.52 44.8 78.8 40.6 10 Floating rate 7,740,214 544 5.89 58.0 47.6 3.8 11 Total short term 27,767,002 1,164 5.43 36.2 66.8 10.6 12 Fixed rate (thousands of dollars) .. 16,648,860 3,863 31 5.06 22.6 70.4 12.8 13 1-99 38,661 28 118 7.98 74.1 62.0 2.0 14 100-499 139,985 236 72 6.59 59.4 80.1 7.2 15 500-999 220,134 674 53 5.67 37.9 84.9 8.6 16 1,000-4,999 2,403,667 2,310 34 5.38 27.7 80.7 9.8 17 5,000-9,999 2,623,272 6,744 45 4.97 19.6 66.6 7.5 18 10,000 and over 11.223.141 19,495 26 4.97 21.2 68.7 14.8 19 Floating rate (thousands of dollars) 11.118.142 569 117 5.97 56.7 61.5 7.4 20 1-99 368,635 30 147 7.73 80.2 85.6 1.9 21 100-499 1,026,704 210 144 7.33 71.7 89.9 5.9 22 500-999 649,734 663 133 7.12 62.2 90.1 9.7 23 1,000-4,999 2,029,431 2,064 132 6.78 60.1 88.6 13.2 24 5,000-9,999 1,512,670 6,802 105 6.23 45.5 82.0 11.5 25 10,000 and over 5,530,968 28,135 101 5.11 53.4 35.8 4.6 Months 26 Total long term 3,795,772 1,130 6.31 49.1 85.1 16.3 27 Fixed rate (thousands of dollars) .. 1,212,905 1,734 5.48 46.1 97.6 30.0 28 1-99 8,826 25 8.78 88.3 35.6 2.3 29 100-499 28,748 242 7.32 68.5 73.2 7.2 30 500-999 44,474 707 6.55 51.2 74.6 8.1 31 1,000 and over 1,130,857 7,179 5.37 45.0 99.6 31.6 32 Floating rate (thousands of dollars) 2,582,867 971 6.70 50.5 79.2 9.9 33 1-99 34,088 37 7.77 76.1 72.4 8.1 34 100-499 236,977 228 7.48 73.3 83.5 13.4 35 500-999 204,581 698 7.22 59.7 86.4 20.3 36 1,000 and over 2,107,222 5,297 6.55 46.7 78.1 8.6 Loan rate (percent) Days Effective3 Nominal8 LOANS MADE BELOW PRIME10 37 Overnight6 6,892,046 8,408 4.71 4.69 3.8 57.3 1.4 38 One month and under (excluding overnight) 4,835,105 5,990 19 5.07 5.05 21.7 82.1 7.2 39 Over one month and under a year 3,027,094 4,257 149 4.97 4.92 42.9 86.3 21.1 40 Demand7 6,509,695 5,723 4.70 4.65 44.5 38.1 12.9 41 Total short term 21,263,940 6,118 37 4.83 25.9 61.2 9.0 42 Fixed rate 15,221,141 6,381 4.86 4.83 17.5 68.3 10.5 43 Floating rate 6,042,799 5,543 4.76 4.71 47.0 43.2 5.3 Months 44 Total long term 1,744,858 4,204 42 5.02 4.96 49.3 94.5 24.7 45 Fixed rate .. 1,000,794 4,635 5.09 5.02 40.5 99.5 35.3 46 Floating rate 744,064 3,736 4.93 4.88 61.2 87.7 10.3 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • August 1992 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 3—7, 1992•—Continued A. Commercial and Industrial Loans—Continued Weighted Loan rate (percent) Loans Loans Amount of Average average secured made Partici- Characteristic ($ l 1 o , a 0 n 0 s 0 ) ($1 si ,0 ze 0 0) m D at a u y ri s t y W e a f v e f e e ig r c a h ti g t v e e e d St e a r n r d o a r rd c (p o e ll r b a c y t e e n ra t) l ( c p o u m e m n r e c d m n e e t n i r t t - ) (p p l e o a r t a c i n e o s n n t ) OTHER BANKS 1 Overnight6 853,030 6,708 4.73 89.1 2 One month and under (excluding overnight) 460,086 540 24 5.65 43.8 90.1 20.1 3 Fixed rate 315,780 1,043 23 5.34 44.0 90.2 21.7 4 Floating rate 144,306 262 24 6.32 43.6 90.1 16.6 5 Over one month and under a year . 1,303,606 175 163 6.39 54.1 86.7 7.1 6 Fixed rate 360,348 234 107 6.02 46.6 68.5 11.4 7 Floating rate 943,258 160 184 6.54 57.0 93.6 5.5 8 Demand7 2,681,767 194 6.52 58.1 85.9 12.1 9 Fixed rate 535,177 716 5.09 27.0 97.5 7.2 10 Floating rate 2,146,590 164 6.88 65.9 83.1 13.3 11 Total short term 5,298,490 239 86 6.13 49.1 87.0 9.6 12 Fixed rate (thousands of dollars) .. 2,064,336 759 31 5.14 28.5 87.8 7.2 13 1-99 37,649 19 130 8.40 70.0 44.9 1.0 14 100-499 61,648 206 98 6.94 64.8 73.5 9.1 15 500-999 56,164 710 57 5.94 56.6 85.0 39.5 16 1,000-4,999 402,131 2,321 43 5.34 31.0 91.2 9.2 17 5,000-9,999 501,717 6,703 34 5.23 30.1 89.5 6.3 18 10,000 and over 1,005,027 15,914 16 4.75 21.4 88.3 5.1 19 Floating rate (thousands of dollars) 3,234,154 166 163 6.75 62.3 86.5 11.2 20 1-99 404,224 28 147 7.87 82.2 87.4 2.6 21 100-499 768,768 201 157 7.46 78.6 89.0 6.7 22 500-999 397,597 656 147 7.12 70.9 87.8 15.3 23 1,000-4,999 762,018 1,839 152 6.90 67.1 83.7 21.5 24 5,000-9,999 282,453 6,410 154 6.16 69.4 68.6 26.4 25 10,000 and over 619,094 15,531 203 5.00 14.3 93.5 .0 Months 26 Total long term 511,240 247 6.89 61.9 73.8 6.3 27 Fixed rate (thousands of dollars) .. 171,387 279 6.62 43.5 70.5 3.1 28 1-99 10,847 22 9.31 87.6 29.6 4.4 29 100-499 16,950 203 8.58 86.2 59.9 11.0 30 500-999 6,059 643 7.13 71.7 27.1 .0 31 1,000 and over 137,532 4,708 6.15 33.5 77.0 2.2 32 Floating rate (thousands of dollars) 339,853 234 7.02 71.2 75.5 8.0 33 1-99 29,955 31 7.93 81.3 60.3 5.4 34 100-499 75,473 213 7.35 71.8 76.2 8.8 35 500-999 46,309 655 7.16 57.4 79.0 14.6 36 1,000 and over 188,116 3,033 6.71 72.8 76.8 6.4 Loan rate (percent) Days Effective3 Nominal8 LOANS MADE BELOW PRIME1" 37 Overnight6 850,483 7,795 4.73 4.66 89.3 38 One month and under (excluding overnight) 355,897 2,487 23 5.06 5.00 34.4 92.9 20.9 39 Over one month and under a year 540,353 1,310 165 4.95 4.88 25.7 87.4 5.4 40 Demand7 946,454 2,028 4.83 4.78 15.4 98.7 6.3 41 Total short term 2,693,186 2,380 56 4.85 4.79 92.7 6.1 42 Fixed rate 1,836,216 3,054 22 4.82 4.77 21.7 89.9 7.0 43 Floating rate 856,970 1,616 173 4.92 4.84 17.0 98.7 4.0 Months 44 Total long term 147,162 1,267 5.15 33.4 81.1 6.2 45 Fixed rate .. 85,275 1,838 5.14 5.14 18.8 91.6 3.6 46 Floating rate 61,886 887 5.17 5.12 53.4 66.5 9.8 For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

A70 Special Tables • August 1992 4.31 Pro forma balance sheet for priced services of the Federal Reserve System1 Millions of dollars Item Mar. 31, 1992 Mar. 31, 1991 Short-term assets1 Imputed reserve requirement on clearing balances $ 558.1 $ 317.3 Investment in marketable securities 4,092.9 2,326.7 Receivables 63.9 59.8 Materials and supplies 5.7 6.1 Prepaid expenses 33.2 35.0 Items in process of collection 3,826.4 2,864.4 Total short-term assets 8,580.2 5,609.3 Long-term assets3 Premises 458.7 328.0 Furniture and equipment 157.4 158.6 Leases and leasehold improvements 19.3 16.9 Prepaid pension costs 103.9 75.9 Total long-term assets 739.2 579.4 Total assets 9,319.4 6,188.7 Short-term liabilities Clearing balances and balances arising from early credit of uncollected items $5,163.2 $3,058.6 Deferred availability items 3,314.2 2,449.7 Short-term debt 102.8 101.0 Total short-term liabilities 8,580.2 5,609.3 Long-term liabilities Obligations under capital leases 1.2 1.2 Long-term debt 201.7 159.7 Total long-term liabilities 202.9 160.9 Total liabilities 8,783.1 5,770.3 Equity 536.4 418.5 Total liabilities and equity4 9,319.4 6,188.7 1. Details may not sum to totals because of rounding. collected for government agencies; and items associated with providing fixed 2. The imputed reserve requirement on clearing balances and investment in availability or credit prior to receipt and processing of items. The cost base for marketable securities reflect the Federal Reserve's treatment of clearing balances providing services that must be recovered under the Monetary Control Act maintained on deposit with Reserve Banks by depository institutions. For includes the cost of float (the difference between the value of gross CIPC and the presentation of the balance sheet and the income statement, clearing balances are value of deferred availability items) incurred by the Federal Reserve during the reported in a manner comparable to the way correspondent banks report period, valued at the federal funds rate. The amount of float, or net CIPC, compensating balances held with them by respondent institutions. That is, represents the portion of gross CIPC that involves a financing cost. respondent balances held with a correspondent are subject to a reserve require- 3. Long-term assets on the balance sheet have been allocated to priced services ment established by the Federal Reserve. This reserve requirement must be with the direct determination method, which uses the Federal Reserve's Planning satisfied with either vault cash or with noneaming balances maintained at a and Control System (PACS) to ascertain directly the value of assets used solely in Reserve Bank. Following this model, clearing balances maintained with Reserve priced services operations and to apportion the value of jointly used assets Banks for priced service purposes are subjected to imputed reserve requirements. between priced services and nonpriced services. Also, long-term assets include an Therefore, a portion of the clearing balances held with the Federal Reserve is estimate of the assets of the Board of Governors directly involved in the classified on the asset side of the balance sheet as required reserves and is development of priced services. reflected in a manner similar to vault cash and due from bank balances normally Long-term assets include amounts for capital leases and leasehold improveshown on a correspondent bank's balance sheet. The remainder of clearing ments and for prepaid pension costs associated with priced services. Effective balances is assumed to be available for investment. For these purposes, the January 1, 1987, the Federal Reserve Banks implemented Financial Accounting Federal Reserve assumes that all such balances are invested in three-month Standards Board Statement No. 87, Employer's Accounting for Pensions. Treasury bills. 4. A matched-book capital structure has been used for those assets that are not The account "items in the process of collection" (CIPC) represents the gross "self-financing" in determining liability and equity amounts. Short-term assets amount of Federal Reserve CIPC as of the balance sheet date, stated on a basis are financed with short-term debt. Long-term assets are financed with long-term comparable with a commercial bank. Adjustments have been made for intra- debt and equity in a proportion equal to the ratio of long-term debt to equity for System items that would otherwise be double-counted on a consolidated Federal the bank holding companies used in the model for the private sector adjustment Reserve balance sheet; items associated with nonpriced items, such as items factor (PSAF). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank Reported Data A81 4.32 Pro forma income statement for priced services of the Federal Reserve System1 Millions of dollars Quarters ending Sept. 30 1991 Income services provided to depository institutions' 189.4 182.7 Production expenses3 151.3 146.3 Income from operations 38.1 36.4 Imputed costs4 Interest on float 4.8 6.6 Interest on debt 4.9 4.2 Sales taxes 2.2 2.2 FDIC insurance 3.8 15.7 1.3 14.3 Income from operations after imputed costs 22.4 22.1 Other income and expenses5 Investment income 43.8 40.6 Earnings credits 43.0 35.9 4.6 Income before income taxes 23.1 26.7 Imputed income taxes6 6.8 7.4 Net income 16.3 19.3 MEMO: Targeted return on equity6 6.5 8.4 1. The income statement reflects income and expenses for priced services. Float recovered through per-item fees is valued at the federal funds rate and has Included in these amounts are the imputed costs of float, imputed financing costs, been added to the cost base subject to recovery in the first quarter of 1992. and the income related to clearing balances. Total float 683.6 Details may not add to totals because of rounding. Unrecovered float (4.0) 2. Income represents charges to depository institutions for priced services. Float subject to recovery 687.6 This income is realized through one of two methods: direct charges to an Sources of float recovery institution's account or charges against accumulated earnings credits. Income Income on clearing balances 82.7 includes charges for per-item fees, fixed fees, package fees, explicitly priced float, As of adjustments 226.8 account maintenance fees, shipping and insurance fees, and surcharges. Direct charges 121.0 3. Production expenses include direct, indirect, and other general administra- Per-item fees 257.1 tive expenses of the Federal Reserve Banks for providing priced services. Also Also included in imputed costs is the interest on debt assumed necessary to included are the expenses of staff members of the Board of Governors working finance priced-service assets and the sales taxes and FDIC insurance assessment directly on the development of priced services, which amounted to $0.5 million in that the Federal Reserve would have paid had it been a private-sector firm. the first quarter for 1992 and 1991. Because of a change in the methodology for imputing PSAF costs approved in 4. Imputed float costs represent the value of float to be recovered, either 1989, FDIC insurance is now calculated on the basis of actual clearing balances explicitly or through per-item fees, during the period. Float costs include those for and credits that are deferred to depository institutions. Previously, the assessment checks, book-entry securities, noncash collection, ACH, and wire transfers. was calculated on the basis of available funds. The following table depicts the daily average recovery of float by the Federal 5. Other income and expenses consist of income on clearing balances and the Reserve Banks for the first quarter of 1992. In the table, unrecovered float cost of earnings credits granted to depository institutions on their clearing includes that generated by services to government agencies or by other central balances. Income on clearing balances represents the average coupon-equivalent bank services. yield on three-month Treasury bills applied to the total clearing balance main- Float recovered through income on clearing balances represents increased tained, adjusted for the effect of reserve requirements on clearing balances. investable clearing balances as a result of reducing imputed reserve requirements Expenses for earnings credits are derived by applying the average federal funds through the use of a deduction for float for cash items in process of collection rate to the required portion of the clearing balances, adjusted for the net effect of when calculating the reserve requirement. This income then reduces the float reserve requirements on clearing balances. required to be recovered through other means. 6. Imputed income taxes are calculated at the effective tax rate derived from a As-of adjustments and direct charges refer to midweek closing float and model consisting of the 50 largest bank holding companies. The targeted return on interterritory check float, which may be recovered from depositing institutions equity represents the after-tax rate of return on equity that the Federal Reserve through adjustments to the institution's reserve or clearing balance or by valuing would have earned had it been a private business firm, based on the bank holding the float at the federal funds rate and billing the institution directly. company model. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Special Tables A83 4.33 ASSETS AND LIABILITIES Life Insurance Companies Millions of dollars 1990 1991 AAccccoouunntt Q2 Q3 Q4 Ql Q2 Q3 Q4 Life insurance companies' 1 Assets 1,374,827 1,384,712 1,408,208 1,505,318 1,538,731 1,579,594 Securities 2 Government 196,320 204,511 210,846 241,289 252,888 262,736 3 United States2 169,595 177,946 183,919 210,685 221,138 230,549 4 State and local 9,717 9,949 9,546 11,329 11,909 12,432 5 Foreign3 17,008 16,616 17,381 19,275 19,841 19,755 6 Business 698,310 699,330 711,081 n.a. 771,650 786,769 810,974 7 Bonds 563,518 578,160 582,597 627,396 635,336 645,981 8 Stocks 134,792 121,170 128,484 144,254 151,433 164,993 9 Mortgages 265,959 267,704 270,109 271,674 270,094 266,737 10 Real estate 43,513 43,531 43,367 45,934 47,164 48,077 11 Policy loans 63,665 61,422 62,603 65,391 66,671 67,689 12 Other assets 107,060 108,214 110,202 109,380 115,145 123,381 1. Data are no longer available on a monthly basis for life insurance companies. insurance companies in the United States. Annual figures are annual-statement 2. Direct and guaranteed obligations. Excludes federal agency issues not asset values, with bonds carried on an amortized basis and stocks at year-end guaranteed, which are included as "Business" securities. market value. Adjustments for interest due and accrued and for differences 3. Issues of foreign governments and their subdivisions and bonds of the between market and book values are not made on each item separately but are International Bank for Reconstruction and Development. included, in total, in "Other assets." Source. Estimates by the American Council of Life Insurance for all life Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 Index to Statistical Tables References are to pages A3-A83 although the prefix 'A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Demand deposits Agricultural loans, commercial banks, 20, 21 Banks, by classes, 19-22, 71, 73, 75 Assets and liabilities (See also Foreigners) Ownership by individuals, partnerships, and corporations, 22 Banks, by classes, 19—21 Turnover, 16 Domestic finance companies, 34 Depository institutions Federal Reserve Banks, 11 Reserve requirements, 9 Financial institutions, 26, 83 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, 71, 73,75 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 EMPLOYMENT, 45 Rates, 24 Eurodollars, 24 Branch banks, 22, 55 Business activity, nonfinancial, 44 FARM mortgage loans, 36 Business expenditures on new plant and equipment, 33 Federal agency obligations, 5, 10, 11, 12, 29, 30 Business loans (See Commercial and industrial loans) Federal credit agencies, 31 Federal finance CAPACITY utilization, 46 Debt subject to statutory limitation, and types and ownership Capital accounts of gross debt, 28 Banks, by classes, 19, 71, 73, 75 Receipts and outlays, 26, 27 Federal Reserve Banks, 11 Treasury financing of surplus, or deficit, 26 Central banks, discount rates, 67 Treasury operating balance, 26 Certificates of deposit, 24 Federal Financing Bank, 26, 31 Commercial and industrial loans Federal funds, 7,18, 20, 21, 22, 24,26 Commercial banks, 17, 20, 70, 72, 74, 76-79 Federal Home Loan Banks, 31 Weekly reporting banks, 20-22 Federal Home Loan Mortgage Corporation, 31, 35, 36 Commercial banks Federal Housing Administration, 31, 35, 36 Assets and liabilities, 19-21, 76-79 Federal Land Banks, 36 Commercial and industrial loans, 17, 19, 20, 21, 22 Federal National Mortgage Association, 31, 35, 36 Consumer loans held, by type and terms, 37, 38, 70, 72, 74 Federal Reserve Banks Loans sold outright, 20 Condition statement, 11 Nondeposit funds, 18 Discount rates (See Interest rates) Number by class, 71, 73, 75 U.S. government securities held, 5, 11, 12, 28 Real estate mortgages held, by holder and property, 36 Federal Reserve credit, 5, 6, 11, 12 Terms of lending, 76-79 Federal Reserve notes, 11 Time and savings deposits, 4 Federal Reserve System Commercial paper, 23, 24, 34 Balance sheet for priced services, 80 Condition statements (See Assets and liabilities) Condition statement for priced services, 81 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, 70, 72, 74 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

A85 Foreigners REAL estate loans Claims on, 55, 57, 60, 61, 62, 64 Banks, by classes, 17, 20, 21, 36, 72 Liabilities to, 21, 54, 55, 57, 58, 63, 65, 66 Financial institutions, 26 Terms, yields, and activity, 35 GOLD Type of holder and property mortgaged, 36 Certificate account, 11 Repurchase agreements, 7, 18, 20, 21, 22 Stock, 5, 54 Reserve requirements, 9 Government National Mortgage Association, 31, 35, 36 Reserves Gross 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 and expenses, Federal Reserve System, 80-81 Residential mortgage loans, 35 Income, personal and national, 44, 51, 52 Retail credit and retail sales, 37, 38,44 Industrial production, 44, 47 Installment loans, 37, 38 SAVING Insurance companies, 28, 36, 83 Flow of funds, 39, 41, 42, 43 Interest rates National income accounts, 51 Bonds, 24 Savings and loan associations, 36, 37, 39. (See also SAIF-insured Commercial banks, 76-79 institutions) Consumer installment credit, 38 Savings Association Insurance Funds (SAIF) insured institutions, 26 Federal Reserve Banks, 8 Savings banks, 26, 36, 37 Foreign central banks and foreign countries, 67 Savings deposits (See Time and savings deposits) Money and capital markets, 24 Securities (See also specific types) Mortgages, 35 Federal and federally sponsored credit agencies, 31 Prime rate, 23 Foreign transactions, 65 International capital transactions of United States, 53-67 Life insurance companies, 83 International organizations, 57, 58, 60, 63, 64 New issues, 32 Inventories, 51 Prices, 25 Investment companies, issues and assets, 33 Special drawing rights, 5, 11, 53, 54 Investments (See also specific types) State and local governments Banks, by classes, 19, 20, 21, 22, 26 Deposits, 20, 21 Commercial banks, 4, 17, 19-21, 72 Holdings of U.S. government securities, 28 Federal Reserve Banks, 11, 12 New security issues, 32 Financial institutions, 36 Ownership of securities issued by, 20, 21 Rates on securities, 24 LABOR force, 45 Stock market, selected statistics, 25 Life insurance companies (See Insurance companies) Stocks (See also Securities) Loans (See also specific types) New issues, 32 Banks, by classes, 19—21 Prices, 25 Commercial banks, 4, 17, 19-21, 70, 72, 74 Federal Reserve Banks, 5, 6, 8, 11, 12 Student Loan Marketing Association, 31 Federal Reserve System, 80-81 Financial institutions, 26, 36 TAX receipts, federal, 27 Insured or guaranteed by United States, 35, 36 Thrift institutions, 4. (See also Credit unions and Savings and MANUFACTURING loan associations) Capacity utilization, 46 Time and savings deposits, 4, 14, 18, 19, 20, 21, 22, 71, 73, 75 Production, 46, 48 Trade, foreign, 54 Margin requirements, 25 Treasury cash, Treasury currency, 5 Member banks (See also Depository institutions) Treasury deposits, 5, 11, 26 Federal funds and repurchase agreements, 7 Treasury operating balance, 26 Reserve requirements, 9 UNEMPLOYMENT, 45 Mining production, 48 U.S. government balances Mobile homes shipped, 49 Commercial bank holdings, 19, 20, 21 Monetary and credit aggregates, 4, 13 Treasury deposits at Reserve Banks, 5, 11, 26 Money and capital market rates, 24 U.S. government securities Money stock measures and components, 4, 14 Bank holdings, 19-21, 22, 28 Mortgages (See Real estate loans) Dealer transactions, positions, and financing, 30 Mutual funds, 33 Federal Reserve Bank holdings, 5, 11, 12, 28 Mutual savings banks (See Thrift institutions) Foreign and international holdings and transactions, 11, 28, 66 NATIONAL defense outlays, 27 Open market transactions, 10 National income, 51 Outstanding, by type and holder, 26, 28 Rates, 23 OPEN market transactions, 10 U.S. international transactions, 53-67 Utilities, production, 48 PERSONAL income, 52 Prices VETERANS Administration, 35, 36 Consumer and producer, 44, 50 Stock market, 25 Prime rate, 23 WEEKLY reporting banks, 20-22 Producer prices, 44, 50 Wholesale (producer) prices, 44, 50 Production, 44, 47 Profits, corporate, 33 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A86 Federal Reserve Board of Governors and Official Staff ALAN GREENSPAN, Chairman WAYNE D. ANGELL DAVID W. MULLINS, JR., Vice Chairman EDWARD W. KELLEY, JR. OFFICE OF BOARD MEMBERS DIVISION OF INTERNATIONAL FINANCE JOSEPH R. COYNE, Assistant to the Board EDWIN M. TRUMAN, Staff Director DONALD J. WINN, Assistant to the Board LARRY J. PROMISEL, Senior Associate Director THEODORE E. ALLISON, Assistant to the Board for Federal CHARLES J. SIEGMAN, Senior Associate Director Reserve System Affairs DALE W. HENDERSON, Associate Director LYNN S. FOX, Special Assistant to the Board DAVID H. HOWARD, Senior Adviser WINTHROP R 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 MARTHA S. SCANLON, Assistant Director RICHARD C. STEVENS, Assistant Secretary1 JOYCE K. ZICKLER, Assistant Director DIVISION OF BANKING JOHN J. MINGO, Adviser LEVON H. GARABEDIAN, Assistant Director SUPERVISION AND REGULATION (Administration) RICHARD SPILLENKOTHEN, Director STEPHEN C. SCHEMERING, Deputy Director DIVISION OF MONETARY AFFAIRS DON E. KLINE, Associate Director DONALD L. KOHN, Director WILLIAM A. RYBACK, Associate Director DAVID E. LINDSEY, Deputy Director FREDERICK M. STRUBLE, Associate Director BRIAN F. MADIGAN, Assistant Director HERBERT A. BIERN, Deputy Associate Director RICHARD D. PORTER, Assistant Director ROGER T. COLE, Deputy Associate Director NORMAND R.V. BERNARD, Special Assistant to the Board JAMES I. GARNER, Deputy Associate Director HOWARD A. AMER, Assistant Director DIVISION OF CONSUMER GERALD A. EDWARDS, JR., Assistant Director AND COMMUNITY AFFAIRS JAMES D. GOETZINGER, Assistant Director JAMES V. HOUPT, Assistant Director GRIFFITH L. GARWOOD, Director JACK R JENNINGS, Assistant Director GLENN E. LONEY, Assistant Director MICHAEL G. MARTINSON, Assistant Director ELLEN MALAND, Assistant Director ROBERT S. PLOTKIN, Assistant Director DOLORES S. SMITH, Assistant Director RHOGER H PUGH, Assistant Director SIDNEY M. SUSSAN, Assistant Director MOLLY S. WASSOM, Assistant Director LAURA M. HOMER, Securities Credit Officer 1. On loan from the Division of Information Resources Management. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A87 JOHN P. LAWARE SUSAN M. PHILLIPS LAWRENCE B. LINDSEY OFFICE OF DIVISION OF RESERVE BANK OPERATIONS STAFF DIRECTOR FOR MANAGEMENT AND PAYMENT SYSTEMS S. DAVID FROST, Staff Director CLYDE H. FARNSWORTH, JR., Director DAVID L. ROBINSON, Deputy Director (Finance and WILLIAM SCHNEIDER, Special Assignment: 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 R. WEIS, Associate Director JOHN H. PARRISH, Assistant Director ANTHONY V. DIGIOIA, Assistant Director LOUISE L. ROSEMAN, Assistant Director JOSEPH H. HAYES, JR., Assistant Director FLORENCE M. YOUNG, Assistant Director FRED HOROWITZ, Assistant Director OFFICE OF THE INSPECTOR GENERAL OFFICE OF THE CONTROLLER BRENT L. BOWEN, Inspector General BARRY R. SNYDER, Assistant Inspector General 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

A88 Federal Reserve Bulletin • August 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

A89 CONSUMER ADVISORY COUNCIL COLLEEN D. HERNANDEZ, Kansas City, Missouri, Chairman DENNY D. DUMLER, Denver, Colorado, Vice Chairman BARRY A. ABBOTT, San Francisco, California JOYCE HARRIS, Madison, Wisconsin JOHN R. ADAMS, Philadelphia, Pennsylvania GARY S. HATTEM, New York, New York JOHN A. BAKER, Atlanta, Georgia JULIA E. HILER, Marietta, Georgia VERONICA E. BARELA, Denver, Colorado HENRY JARAMILLO, Belen, New Mexico 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

A90 Federal Reserve Board Publications For ordering assistance, write PUBLICATIONS SERVICES, Monetary Policy and Reserve Requirements Handbook. MS-138, Board of Governors of the Federal Reserve System, $75.00 per year. Washington, D.C. 20551 or telephone (202) 452-3244 or FAX Securities Credit Transactions Handbook. $75.00 per year. (202) 728-5886. When a charge is indicated, payment should The Payment System Handbook. $75.00 per year. accompany request and be made payable to the Board of Federal Reserve Regulatory Service. 3 vols. (Contains all Governors of the Federal Reserve System. Payment from for- four Handbooks plus substantial additional material.) eign residents should be drawn on a U.S. bank. $200.00 per year. Rates for subscribers outside the United States are as follows and include additional air mail costs: THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS. Federal Reserve Regulatory Service, $250.00 per year. 1984. 120 pp. Each Handbook, $90.00 per year. ANNUAL REPORT. THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A 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 ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— Federal Reserve Bank Board of Directors Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp. Federal Reserve Banks Vol. II (Irregular Transactions). 1969. 116 pp. Each vol- Organization and Advisory Committees ume $2.25; 10 or more of same volume to one address, A Consumer's Guide to Mortgage Lock-Ins $2.00 each. A Consumer's Guide to Mortgage Settlement Costs Introduction to Flow of Funds. 1980. 68 pp. $1.50 each; 10 or A Consumer's Guide to Mortgage Refinancing more to one address, $1.25 each. Home Mortgages: Understanding the Process and Your Right Federal Reserve Regulatory Service. Looseleaf; updated at to Fair Lending least monthly. (Requests must be prepaid.) Making Deposits: When Will Your Money Be Available? Consumer and Community Affairs Handbook. $75.00 per When Your Home is on the Line: What You Should Know year. About Home Equity Lines of Credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A91 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- Changes in Family Finances from 1983 to 1989: Evidence from IARIES OF BANK HOLDING COMPANIES, by Nellie Liang the Survey of Consumer Finances. 1/92. and Donald Savage. February 1990. 12 pp. U.S. International Transactions in 1991. 5/92. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A92 Maps of the Federal Reserve System 9 BOSTON • MINNEAPOLIS I 7 I NEW YORK 12 CHICAGO • • PHILADELPHIA CLEVELAND I SAN FRANCISCO 10 4 a KANSAS CRNRB Sp Louis RICHMOND 5 6 m ATLANTA 11 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

A93 1-A 2-B 3-C 4-D 5_E Baltimore Pittsburgh y Charlotte • Cincinnati Buffalo • • \ CT ^Rl NJ NY BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 6-F 7-G 8-H • Nashville TN M Birmingham^ S \ Wl Ml MO J". • MS GGAA IA Detroit • Louisville n \ LA ££ y TN m JJaacckkssoonnvviillllee fiiii • Memphis - I New Orleans MS LittI? ) y Rock F Miami • ATLANTA CHICAGO ST. LOUIS 9-1 • Helf :na I ND ^ MI m MINNEAPOLIS 10-J WY 12-L jpWPBSpw/IB Omaha • • > Mfl ALASKA Denver • ^Seattle /10 Portland Oklahoma City • OR < OK KANSAS CITY NV 7 11-K OT 1 TX Salt Lake City NM 1 IKlllHih " H \ 1 | • LA EL Paso K AZ " H • o uston • Los Ange les • j, San Antonio CI HAWAII DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A94 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 Donald G. Phelps 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