Federal Reserve Bulletin, 1992-11

VOLUME 78 • NUMBER 11 • NOVEMBER 1992 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C. PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood • Donald L. Kohn • J. Virgil Mattingly, Jr. • Michael J. Prell • Edwin M. Truman The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Section headed by S. Ellen Dykes, the Graphics Center under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Table of Contents 801 EXPANDED HMDA DATA that the regulation could impose, before the ON RESIDENTIAL LENDING: Subcommittee on General Oversight and ONE YEAR LATER Investigations of the House Committee on Banking, Finance and Urban Affairs, Septem- A first study of the expanded HMDA data for ber 16, 1992. 1990, in the November 1991 Bulletin, depicted certain statistical relationships that the data revealed about lending activity nation- 832 ANNOUNCEMENTS wide. The 1991 HMDA data continue to Meeting of Consumer Advisory Council. reflect wide differences in approval and rejection rates for minorities and whites. After pre- Designation of primary dealer controlled by senting national aggregates from the 1991 French firm. reports, this article describes some of the Issuance of Regulation DD (Truth in responses within the public and private sectors Savings). to the data released a year ago. It discusses as well the special role that entities in the second- Issuance of rule regarding section 23A of the ary mortgage market play in the home-lending Federal Reserve Act. process and steps such institutions have taken Reduction in newspaper publication requireto promote affordable housing. ments for applications. 825 INDUSTRIAL PRODUCTION AND Issuance of rule regarding prompt corrective CAPACITY UTILIZATION action provisions of FDICLA. The index of industrial production declined Adoption of joint agreement with Conference 0.5 percent in August, after a revised increase of State Bank Supervisors. of 0.6 percent in July. Total industrial capacity Changes in Board staff. utilization decreased 0.5 percentage point in August, to 78.5 percent. 835 LEGAL DEVELOPMENTS 828 STATEMENT TO THE CONGRESS Various bank holding company, bank service corporation, and bank merger orders; and John P. LaWare, member, Board of Goverpending cases. nors, discusses the implementation and effectiveness of the real estate appraisal requirements contained in Title XI of the Financial A1 FINANCIAL AND BUSINESS STATISTICS Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) and says that the These tables reflect data available as of Board has expended considerable effort in September 28, 1992. working with the other financial regulatory agencies in prescribing appropriate standards A3 GUIDE TO TABULAR PRESENTATION for the performance of real estate appraisals and has attempted to comply with both the A4 Domestic Financial Statistics letter and the spirit of Title XI while remain- A44 Domestic Nonfinancial Statistics ing sensitive to the potential costs and burdens A53 International Statistics Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A69 GUIDE TO STATISTICAL RELEASES AND A90 FEDERAL RESERVE BOARD PUBLICATIONS SPECIAL TABLES A92 MAPS OF THE FEDERAL RESERVE A84 INDEX TO STATISTICAL TABLES SYSTEM A86 BOARD OF GOVERNORS AND STAFF A94 FEDERAL RESERVE BANKS, BRANCHES, A88 FEDERAL OPEN MARKET COMMITTEE AND OFFICES AND STAFF; ADVISORY COUNCILS Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Expanded HMDA Data on Residential Lending: One Year Later Glenn B. Canner, of the Division of Research and A first study of the expanded HMDA data, Statistics, and Dolores S. Smith, of the Division of reported in the November 1991 Federal Reserve Consumer and Community Affairs, prepared this Bulletin, depicted certain statistical relationships article. that the data revealed about lending activity nationwide.2 Among the findings, the one that attracted Questions about the access of minorities and lower- the most attention was that black and Hispanic loan income households to home mortgage loans contin- applicants were denied credit in greater proportions ued to draw considerable attention in the past year. than white applicants, even within the same income Indeed, the release of new data in October 1991 groupings. The data showed similar variations in documenting the credit experiences of various rates of loan disposition among neighborhoods groups during 1990 intensified the discussion and classified by their racial composition and income stimulated initiatives in the private and public sec- characteristics. The HMDA data have clear limitators to address perceived inequities. The data on tions. Foremost among them is the general lack of home lending, which cover metropolitan areas information about factors important in assessing throughout the United States, are available as a the creditworthiness of applicants and the adequacy consequence of the 1989 amendments to the Home of collateral offered as security on loans. Without Mortgage Disclosure Act (HMDA), which greatly such information, determining whether individual expanded the scope of the act. applicants have been treated fairly is not possible. Since 1976, when the original act went into Nonetheless, the lending patterns depicted by the effect, most depository institutions—commercial data have led many persons to conclude that widebanks, savings banks, savings and loan associa- spread racial discrimination characterizes the tions, and credit unions—with offices in metropoli- home-lending process. tan areas (and their mortgage-lending subsidiaries) The HMDA data now available for 1991 present have made public information about the geographic a nationwide picture that is little changed from that distribution of the home mortgage and home in 1990: They continue to reflect wide differences improvement loans they originate and purchase. in approval and rejection rates for minorities and Beginning with lending activity for 1990, reflected whites. Thus, the debate about what the data sigin the numbers released in October 1991, covered nify can be expected to persist. institutions have also disclosed—in reports prepared by the Federal Financial Institutions Examination Council (FFIEC)—information on the dispoments to Regulation C (12 C.F.R. 203). These amendments will sition of loan applications and on the race or establish a new set of criteria as of January 1,1993, for determining national origin, gender, and annual income of loan coverage for independent mortgage companies. The new rules are applicants and borrowers.1 expected to bring the total of independent mortgage companies covered by HMDA to more than 1,000 institutions. 2. See Glenn B. Canner and Dolores S. Smith, "Home Mortgage Disclosure Act: Expanded Data on Residential Lending," Federal Reserve Bulletin, vol. 77 (November 1991), pp. 859-81. 1. The 1989 changes to the act also extended coverage to some Statistics presented in the Bulletin article were based on prelimiindependent mortgage companies—those unaffiliated with a depos- nary data. The final HMDA data for 1990 were made available to itory institution. The Federal Deposit Insurance Corporation the public in January 1992. Overall, differences between the prelim- Improvement Act of 1991 (FDICIA) extends coverage to even inary and final data were slight. For some individual lenders and more independent mortgage companies. To implement the provi- some metropolitan areas, however, the differences were more sions of FDICIA, the Federal Reserve Board is adopting amend- substantial. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

802 Federal Reserve Bulletin • November 1992 After presenting national aggregates from the 1. Residential lending activity reported by financial 1991 reports, this article describes some of the institutions covered by HMDA, 1981-91 responses within the public and private sectors to Number Number of the data released a year ago. These responses of Number of metropolitan Year loans1 reporting statistical include research projects that seek objective expla- institutions (millions) area reports nations of the statistical patterns, investigative and 1981 1.28 8,094 10,945 enforcement efforts by federal regulators to ensure 1982 1.13 8,258 11,357 compliance with fair-lending and community rein- 1983 1.71 8,050 10,970 1984 1.86 8,491 11,799 vestment laws, educational measures to increase 1985 1.98 9,072 12,567 1986 2.83 8,898 12,329 awareness of lenders' responsibilities and to inform consumers better about the mortgage loan process, 1987 3.42 9,431 13,033 1988 3.39 9,319 13,919 and practical ideas for identifying and eliminating 1989 3.13 9,203 14,154 19902 6.59 9,332 24,041 lending practices that may discriminate against 1991 7.89 9,358 25.934 minority applicants, including a careful examina- • 1. Before 1990, includes only loans originated by covered institutions; tion of any unintended adverse effects of underwrit- beginning in 1990 (first year under revised reporting system), includes loans ing standards.3 The article discusses as well the originated and purchased, applications approved but not accepted by the applicant, applications denied or withdrawn, and applications closed because special role that entities in the secondary mortgage information was incomplete. market play in the home-lending process and steps 2. Revised from preliminary figures published in Glenn B. Canner and Dolores S. Smith, "Home Mortgage Disclosure Act: Expanded Data on such institutions have taken to promote affordable Residential Lending," Federal Reserve Bulletin, vol. 77 (November 1991), housing. p. 861, to reflect corrections and the reporting of additional data. SOURCE. FFIEC, Home Mortgage Disclosure Act. SUMMARY RESULTS FOR 1991 HMDA DATA ity of a particular institution in a specific metropolitan statistical area (MSA). Although the number of For lending activity in 1991, the FFIEC prepared reporting institutions in 1991 remained about the disclosure statements for 9,358 reporting same as in 1990, the volume of reported applicainstitutions—5,551 commercial banks, 1,536 sav- tions and loans increased substantially. ings and loan associations, 1,436 credit unions, and At the time this article was written, a few revi- 835 mortgage companies, of which 528 were sions were being made to the data base. Conseunaffiliated with a depository institution (table l).4 quently, statistics presented here may differ slightly These disclosure statements consisted of 25,934 from those that may be derived from the final 1991 individual reports, each covering the lending activ- public data set. Volume of Applications and Loans 3. The federal banking agencies include the Federal Reserve Board, the Federal Deposit Insurance Corporation (FDIC), the In 1991, lenders covered by HMDA acted on Office of the Comptroller of the Currency (OCC), the Office of Thrift Supervision (OTS), and the National Credit Union Adminis- roughly 6.56 million home loan applications— tration (NCUA). The other enforcement agencies are the Depart- 3.26 million for purchasing, 2.09 million for refiment of Justice, the Department of Housing and Urban Developnancing, and 1.18 million for improving dwellings ment (HUD), and the Federal Trade Commission. 4. Each financial institution covered by HMDA submits a Loan/ for one to four families, and the balance for loans Application Register (LAR) to its supervisory agency. The LAR is on multifamily dwellings for five or more families a report form used to record data for each loan application acted on (table 2). As in 1990, nearly three-quarters of the and for each loan purchased. It includes information on the race or national origin, gender, and annual income of the applicants or reported applications for home purchase loans were borrowers; the size of the loan; the geographic location of the for conventional mortgage loans; the remainder property; and the identity of the secondary market purchaser if the were for government-backed forms of credit— loan was sold. Based on the submission of these raw data, the FFIEC prepares HMDA disclosure statements consisting of a set of loans insured or guaranteed by the Federal Housing tables for each metropolitan area in which institutions have offices. Administration (FHA), the Veterans Administration The disclosure statements are made available to the public by the (VA), or the Farmers Home Administration covered institutions and by central data depositories in each metropolitan area. See Appendix. (FmHA). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Expanded HMDA Data on Residential Lending: One Year Later 803 Among the various types of loans used to pur- costs, they are particularly appealing to prospective chase homes, those backed by VA guarantees borrowers who have limited financial resources. changed the most from 1990 to 1991, increasing Among racial groups, blacks were much more 27 percent. The total number of conventional loans likely than whites, and Asians much less likely was virtually unchanged, while the number of than whites, to seek FHA and VA loans. In 1991, FHA-insured loans fell about 1.5 percent. 47.6 percent of blacks who applied for home pur- The 1991 volume of loans for the purpose of chase loans sought government-backed forms of refinancing more than doubled the 1990 total, credit; the comparable proportions for Hispanics, reflecting the decline in mortgage interest rates. whites, and Asians were 33.9 percent, 24.8 percent, The level of refinancing activity can be expected to and 11.7 percent respectively.6 be even greater for 1992, as interest rates have The overall proportions of the different racial continued to fall. groups seeking government-backed loans reflect differences in their underlying financial circumstances. The only financial characteristic of appli- Use of Various Loan Products cants reported in the HMDA data, however, is for Home Purchase income. After controlling for applicant income, the 1991 HMDA data still indicate that blacks, in par- Like the 1990 data, the 1991 HMDA data reveal ticular, are much more likely than whites to seek large differences in the types of home purchase FHA and VA loans. For instance, 56.0 percent of loans that applicants, grouped by their income and the low-income black applicants applied for racial characteristics, sought during the year government-backed home purchase loans in 1991, (table 3). In general, government-backed home pur- compared with 36.4 percent of the low-income chase loans are more likely to be requested by white applicants. households with relatively low incomes than they are by borrowers with higher incomes. In 1991, 38.8 percent of applicants with low incomes Disposition of Loan Applications (income less than 80 percent of the median family income for their MSA) applied for government- HMDA data for 1991, like the data for 1990, backed loans, compared with 15.4 percent of appli- indicate that lenders approve most applications they cants with high incomes (income more than receive for home purchase loans. In 1991, lenders 120 percent of the median family income for then- approved roughly 71.2 percent of applications for MSA). The heavy reliance of lower-income appli- conventional home purchase loans and 71.7 percants on government-backed loans reflects two cent of applications for government-backed loans principal factors. First, such households are much (table 2). Among the applications for conventional more likely to buy homes that are within the maxi- loans, 18.9 percent were denied by lenders; for the mum limits of FHA loan insurance (between balance, either the consumers withdrew their appli- $67,500 and $124,875, the latter amount for locali- cations or the lender closed the application file ties with relatively high prices for homes). Second, after the prospective borrower was asked for, but households with lower incomes, which on average failed to submit, information required for the credit have substantially fewer liquid and other financial decision. assets than do higher-income households, are much One reason that rates of approval for home purmore likely than households with high incomes to chase loans are relatively high is that prospective face significant liquid-asset constraints.5 Because homebuyers, before filing an application, fregovernment-backed loans allow very low down quently obtain information about the price of home payments and the financing of a portion of closing they can afford and the size of loan for which they 5. See Arthur Kennickell and Janice Shack-Marquez, "Changes 6. The HMDA data include Hispanics of all races in the Hisin Family Finances from 1983 to 1989: Evidence from the Survey panic category, in contrast to data compiled by the U.S. Census of Consumer Finances," Federal Reserve Bulletin, vol. 78 (January Bureau, which differentiate between white Hispanics and nonwhite 1992), pp. 1-18. Hispanics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

804 Federal Reserve Bulletin • November 1992 2. Disposition of applications for home loans, by purpose and type of loan, 19911 Number in thousands, and percentage distribution Loans on one- to four-family dwellings Home purchase DDDDiiiissssppppoooossssiiiittttiiiioooonnnn Federal Housing Veterans Farmers Home Conventional Administration Administration Administration Number Percent Number Percent Number Percent Number Percent Loan originated 450.6 67.7 134.6 72.0 1.0 62.7 1,615.2 67.2 Application approved but not accepted by applicant 25.1 3.8 1.4 .7 • .7 97.1 4.0 Application denied 121.8 18.3 28.5 15.2 * 21.0 455.1 18.9 Application withdrawn 59.4 8.9 19.9 10.6 • 13.1 214.2 8.9 File closed (information incomplete) 8.7 1.3 2.5 1.3 • 2.5 23.6 1.0 Total 665.6 100 186.9 100 1.5 100 2,405.1 100 1. Components may not sum to totals because of rounding. SOURCE. FFIEC, Home Mortgage Disclosure Act. * Fewer than 500 can likely qualify. Results of a recent consumer most frequently cited reason for credit denial is survey sponsored by the Federal Reserve Board credit history. indicate that nearly 70 percent of the families that Nationally, the proportion of applications for purchased a home within the past three years, and conventional home loans denied by lenders was that financed the purchase with either a mortgage somewhat higher for 1991 than for 1990 (18.9 peror a land contract, received information from real cent compared with 16.1 percent). Several factors estate agents or loan officers about whether they may account for this change. First, in light of were likely to qualify for a loan.7 Also receiving increasing delinquencies on mortgage loans assoprequalification information were consumers who ciated with the recession and weak housing marhad actively been looking for a home to buy but did kets in many areas of the country, lenders may have not complete a purchase. Overall, 78 percent of the tightened their standards for loan underwriting or consumers who said they were active house hunters applied standards more conservatively in 1991.8 in the past three years had worked with real estate Some evidence for such tightening can be found agents or had approached lending institutions for from the "Senior Loan Officer Opinion Survey on some type of credit information. Of these, 61 per- Banks' Lending Practices" conducted by the Fedcent reported receiving prequalification advice. eral Reserve. These quarterly surveys indicate that Loan officers or real estate agents are likely to much larger proportions of mortgage lenders were base prequalification advice on limited information tightening credit standards in late 1990 through the such as the prospective borrower's income, debts, middle of 1991 than were easing them. Most freand assets, together with the price of the home. quently these lenders reported requiring a higher Generally, however, they do not obtain credit his- percentage of down payment; the next most fretory information available from credit bureau quently used methods for tightening that they reports. Thus, because many of the other factors mentioned were higher requirements for income that underwriters consider in evaluating loan appli- and more stringent requirements for mortgage cations are considered at this prequalification stage, insurance. if most prospective applicants are prescreened one Second, the higher loan denial rate shown for would expect to see credit history as the predomi- 1991 may reflect an increased tendency of loan nant reason for credit denial. The regulations that originators to sell mortgages into the secondary implement HMDA provide lenders with an oppor- market. To do so, lenders must adhere to the undertunity to report the reasons for credit denial, and an assessment of these data confirms that by far the 8. Data from the Mortgage Bankers Association show that, after reaching a ten-year low in the first quarter of 1990, delinquency rates on conventional mortgages rose sharply through the second 7. Board of Governors of the Federal Reserve System, "Survey quarter of 1991. Delinquency rates have moderated some since of Consumer Credit Shopping Activities" (forthcoming). then. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Expanded HMDA Data on Residential Lending: One Year Later 805 2.—Continued Loans on one- to four-family dwellings LLooaannss oonn mmuullttiiffaammiillyy ddwweelllliinnggss Home ((ffiivvee oorr mmoorree DDDiiissspppooosssiiitttiiiooonnn Home refinancing improvement ffaammiilliieess)) Number Percent Number Percent Number Percent Loan originated 1,488.3 71.1 732.3 62.2 18.0 56.1 Application approved but not accepted by applicant 43.2 2.1 46.6 4.0 .8 2.5 Application denied 332.3 15.9 328.0 27.9 8.2 25.5 Application withdrawn 205.1 9.8 61.1 5.2 4.1 12.8 File closed (information incomplete) 24.6 1.2 8.4 .7 1.1 3.4 Total 2,093.5 100 1,176.4 100 32.1 100 writing guidelines of the various secondary market for 61.2 percent of all applicants for conventional institutions and thus frequently follow these guide- home loans in 1990, they accounted for 53.6 perlines in assessing loan applicants. Lenders may cent in 1991. (For purposes of comparison, applialso approve nonconforming loans for their own cants in both 1990 and 1991 were categorized portfolios, however. Sometimes they originate using the median family income figures for each these loans under special lending programs that MSA as estimated by HUD.) This change results apply highly flexible underwriting standards; at from both a decline in the number of high-income other times, the lender's familiarity with the pro- applicants and an increase in the number of lowspective borrower allows an extension of credit income applicants. The larger number of lowwhen a strict application of the underwriting guide- income applicants may be due to enhanced marketlines might suggest otherwise. Some evidence that ing and outreach efforts by lending institutions and lenders are selling more loans to the secondary the implementation of innovative lending programs market comes from the HMDA data. In 1990, by the secondary market (see the discussion on the lenders covered by HMDA reported selling 46 per- secondary market below). The growth at the lowercent of the conventional home purchase loans they income end of the market is consistent with data originated; in 1991, they reported selling 51 per- from other sources that indicate a greater proporcent. The proportion of loans for refinancing that tion of first-time homebuyers in 1991 than in 1990. were sold to the secondary market increased even Such homebuyers likely have lower incomes than more significantly, from 39 percent in 1990 to current owners buying new homes. Finally, the 51 percent in 1991. growth at the lower-income end of the conven- Third, the increase in the loan denial rate from tional market may reflect a shift in preferences 1990 to 1991 may have resulted from a deteriora- among some home purchasers away from FHAtion in the financial circumstances of loan appli- insured loans toward conventional loans. In July cants. With the recession, a larger portion of appli- 1991, the FHA loan program was modified in cants in 1991 than in 1990 may have had less stable several ways that made these loans relatively less incomes or weaker credit histories. Also, weak desirable to prospective mortgage borrowers (for housing markets may have led to more instances in instance, only 57 percent of closing costs instead of which property appraisals that did not support con- 100 percent could be financed). tract sales prices resulted in loan denials. Comparisons between the 1990 and the 1991 HMDA data suggest that, nationwide, the pool of Disposition Rates for Different Groups applicants for conventional home loans in 1991 of Applicants may have been somewhat less qualified (based on differences in income, at least) than the pool in Although most applications for home loans are 1990. Whereas high-income applicants accounted approved, the rates of approval and denial vary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

806 Federal Reserve Bulletin • November 1992 3. Number of home loan applications, by purpose of loan, characteristics of applicant, and characteristics of census tract in which property is located, 1991 Home purchase AApppplliiccaanntt oorr cceennssuuss ttrraacctt cchhaarraacctteerriissttiicc HHoommee rreeffiinnaanncciinngg HHoommee iimmpprroovveemmeenntt Government-backed1 Conventional Race of applicant American Indian/Alaskan native 3,865 10,977 7,952 6,746 Asian/Pacific Islander 12,201 92,018 92,104 21,294 Black 84,450 93,051 62,182 95,671 Hispanic 54,749 106,809 103,575 81,399 White 621,482 1,882,748 1,608,452 777,670 Other 2,882 15,849 14,159 5,830 Joint (white/minority) 21,479 41,601 38,361 17,225 Income of applicant (percentage of MSA median)2 Less than 80 264,240 417,442 251,647 307,526 80-99 133,285 209,629 190,739 127,973 100-120 104,548 214,499 213,218 113,496 More than 120 177,330 970,689 989,908 348,528 Racial composition of census tract (minorities as percentage of population) Less than 10 333,557 1,086,285 974,916 523,105 10-19 180,309 386,401 323,554 139,319 20-49 93,868 213,833 240,010 116,983 50-79 26,200 84,670 49,694 80-100 22,182 52,992 61,043 Income of census tract3 Low or moderate .. 83,336 183,520 178,379 143,617 Middle 437,022 1,036,347 934,805 531,092 Upper 135,758 574,765 562,958 215,435 1. Loans backed by the Federal Housing Administration, the Veterans MSA as a whole; in middle-income census tracts, median family income is Administration, and the Farmers Home Administration. 80 percent to 120 percent of the median MSA family income; in upper- 2. MSA median is median family income of the metropolitan statistical income census tracts, median family income is more than 120 percent of the area (MSA) in which the property related to the loan is located. median MSA family income. 3. Low- or moderate-income census tracts are those in which median SOURCE. FFIEC, Home Mortgage Disclosure Act. family income is less than 80 percent of the median family income of the considerably among applicants grouped by their and experience more frequent periods of income and racial characteristics (table 4). Nation- unemployment. wide in 1991, 79.1 percent of the applicants for Like the data for 1990, the HMDA data for 1991 conventional home purchase loans whose incomes indicate that greater proportions of black and Hisplaced them in the highest income grouping were panic loan applicants than of Asian and white approved for loans, compared with 59.8 percent for applicants are turned down for credit (table 4). the lowest income grouping. Similar relationships Consistent with these findings are indications from between approval rates and applicant income are the 1991 data that the rate of loan denial generally evident for other types of loans, including those for increases as the proportion of minority residents in refinancing and for home improvement. a neighborhood increases (table 5). The high rates of loan approval for higher- Nationwide for conventional home purchase income applicants are not surprising. Of course, a loans, 37.6 percent of black applicants, 26.6 perhousehold with relatively low income may qualify cent of Hispanic applicants, 15.0 percent of Asian for a particular loan (of a given size and set of applicants, and 17.3 percent of white applicants terms) when a higher-income household cannot were denied credit in 1991 (table 4); by comparibecause of differences in other factors pertinent to son, the denial rates nationwide in 1990 for this credit evaluations (for instance, debt payment type of loan were 33.6 percent for blacks, 21.4 perrecords or levels of nonhousing debt); however, cent for Hispanics, 12.8 percent for Asians, and lower-income households on average have fewer 14.2 percent for whites. Similar rates of loan denial assets available to meet down payment require- across racial lines are found for other types of ments and closing costs, have lower net worth, home loans as well. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Expanded HMDA Data on Residential Lending: One Year Later 807 The differences in denial rates for applicants home loan products and granting mortgage categorized by their race or national origin partly loans.9 reflect differences in the proportion of each group The second effort was a study of lending in the with relatively low incomes. In 1991, for instance, Boston metropolitan area, conducted by the Fed- 22.9 percent of white applicants who applied for eral Reserve Bank of Boston in cooperation with conventional home purchase loans had incomes the other federal banking agencies and HUD.10 It that were less than 80 percent of the median family was initiated in response to the large differences in income for their MSA. The comparable percent- rates of home loan approval among white, black, ages for blacks, Hispanics, and Asians were and Hispanic home loan applicants in Boston that 39.8 percent, 26.2 percent, and 12.1 percent were revealed by the 1990 HMDA data. respectively. Although income levels may account The third effort, a study by the New York Bankfor some of the variation in loan disposition rates ing Department completed in March 1992, examamong racial groups, other factors account for most ined files of home loan applications submitted in of the differences. This conclusion is evident 1989 at ten savings banks in metropolitan New because, after controlling for income, white appli- York. Its primary focus was the assessment of loan cants for conventional home loans in all income approvals and rejections to determine whether these groupings have lower rates of denial than black and banks were unlawfully discriminating in their credit Hispanic applicants (table 6). decisions. Department of Justice Investigation EVALUATING THE DATA in Atlanta The HMDA data provide little insight into the For the past several years, the Department of Jusfinancial circumstances of loan applicants or the tice has been investigating home-lending practices characteristics of the properties that applicants seek in Atlanta and, in particular, the practices of Decato purchase, refinance, or improve. The data reveal tur Federal Savings and Loan Association, one of that credit history problems and excessive debt the largest home lenders in the city. The Departlevels relative to income are the reasons that lend- ment of Justice launched its investigation after a ers most frequently give for credit denial; but spe- series of articles, published in 1988 in the Atlanta cific information for applicants—on their level of Journal Constitution, documented wide differences debt, debt repayment record, employment experi- in the number of home mortgage loans extended in ence, and other factors pertinent to an assessment Atlanta neighborhoods grouped by their racial comof credit risk—is not available. Moreover, the position. 11 The investigation has been wide-ranging HMDA data include no information about the spe- but has focused on a detailed review of the files of cific underwriting standards used to assess each more than 4,000 applicants for mortgage loans, prospective borrower's application. Thus, the data, using statistical techniques to control for differby themselves, provide little basis to assess the ences in the financial and economic circumstances fairness of the loan process. of these prospective borrowers. Based on its inves- Three major investigative efforts that were tigation, the Department of Justice concluded that recently completed assessed how factors not contained in the HMDA reports—such as financial 9. U.S. Department of Justice, press release, "Department of assets, level of debt, employment experience, and Justice Settles First Race Discrimination Lawsuit Against Major record of payments on debt—influence credit deci- Home Mortgage Lender," September 17,1992. sions. The first, by the Department of Justice, 10. Alicia H. Munnell, Lynn E. Browne, James McEneaney, and focused on a single lender in Atlanta. Based on its Geoffrey M.B. Tootell, "Mortgage Lending in Boston: Interpreting HMDA Data," Federal Reserve Bank of Boston (October 8,1992). investigation, the Department of Justice filed a Copies of the report are available from the Research Library—D, complaint in September 1992 alleging that the P.O. Box 2076, Federal Reserve Bank of Boston, 60 Atlantic institution had engaged in discrimination against Avenue, Boston, MA 02106. 11. "The Color of Money," Atlanta Journal Constitution prospective black homebuyers when marketing (May 1-16,1988). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

808 Federal Reserve Bulletin • November 1992 4. Disposition of home loan applications, by purpose of loan and characteristics of applicant, 19911 Percentage distribution Home purchase Applicant Government-backed2 Conventional characteristic With- With- Approved Denied drawn File closed Total Approved Denied drawn File closed Total Race American Indian/ Alaskan native .. 64.2 22.1 12.1 1.6 100 62.4 27.3 8.8 1.4 100 Asian/Pacific Islander 74.9 12.5 11.4 1.2 100 72.6 15.0 11.0 1.4 100 Black 61.4 26.4 10.3 1.8 100 53.3 37.6 8.0 1.0 100 Hispanic 68.4 18.9 11.0 1.7 100 61.5 26.6 10.3 1.5 100 White 74.3 16.3 8.3 1.1 100 73.7 17.3 8.2 .8 100 Other 68.7 16.3 12.6 2.4 100 67.2 19.9 11.5 1.4 100 Joint (white/minority) 74.0 15.9 9.1 1.0 100 71.9 17.5 9.8 .8 100 Income (percentage of MSA median)3 Less than 80 66.2 25.2 7.5 1.1 100 59.8 32.8 6.7 .7 100 80-99 77.6 13.6 7.8 1.0 100 75.0 16.8 7.4 .8 100 100-120 79.1 12.1 7.8 1.0 100 77.8 13.7 7.7 .8 100 11.0 More than 120 79.8 8.1 1.1 100 79.1 11.1 8.9 .9 100 1. Components may not sum to totals because of rounding. 3. MSA median is median family income of the metropolitan statistical 2. Loans backed by the Federal Housing Administration, the Veterans area in which the property related to the loan is located. Administration, and the Farmers Home Administration. SOURCE. FFIEC, Home Mortgage Disclosure Act. Decatur Federal had violated the Fair Housing Act excluded large portions of the black community and the Equal Credit Opportunity Act (ECOA) by from its defined lending market and that the institutreating black applicants less favorably than white tion "rarely or never" advertised its home loan applicants.12 products in media oriented to the black community. The complaint against Decatur Federal alleged The case against Decatur Federal was resolved that black applicants who sought mortgage loans in a consent decree without any admission of were subjected to stricter underwriting standards wrongdoing by the institution. The decree requires than were white applicants. According to the Decatur Federal to take remedial actions that Department of Justice, white applicants who failed include providing $1 million to forty-eight black to meet the underwriting standards of the institu- applicants whose loan requests were turned down, tion in some instances were extended special con- advertising extensively through black-oriented sideration, and their applications were approved, newspapers and radio stations, implementing a pay whereas black applicants did not receive this treat- structure that increases incentives for lending in ment. In other cases, black applicants who met the predominantly minority neighborhoods, appointing institution's underwriting standards were nonethe- a review underwriter to reexamine every applicaless denied credit. One consequence of these prac- tion that is initially rejected, and instituting a tices was that black applicants for home loans had retraining program for all home-lending personnel. a significantly higher rejection rate than white The Department of Justice believes that the investiapplicants had. The government's investigation gation, which was the first to rely on a detailed also concluded that Decatur Federal purposely statistical analysis of credit files, will serve as a model for future investigations. 12. Both the ECOA and the Fair Housing Act prohibit discrimination on the basis of race or ethnic origin, gender, and religion. In addition, the Fair Housing Act prohibits discrimination on the basis Federal Reserve Bank Study of Institutions of handicap or familial status; and the ECOA prohibits discriminain Boston tion on the basis of age and marital status, because income is derived from public assistance, or because a right under the Consumer Credit Protection Act is exercised. The civil rights acts of Racial disparities in patterns of mortgage lending 1866 and 1870, too, have been interpreted to bar racial discrimination in lending. have long been a concern in Boston. A 1989 study Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Expanded HMDA Data on Residential Lending: One Year Later 809 4.—Continued Home refinancing Home improvement AApppplliiccaanntt cchhaarraacctteerriissttiicc With- With- Approved Denied File closed Total Approved Denied File closed Total drawn drawn Race American Indian/ Alaskan native 66.0 21.2 11.1 1.6 100 69.0 25.9 4.6 .5 100 Asian/Pacific Islander 68.7 18.7 10.6 1.9 100 59.0 32.0 7.8 1.2 100 Black 58.1 29.5 10.9 1.4 100 50.9 44.2 4.3 .6 100 Hispanic 59.6 26.9 11.8 1.7 100 55.7 39.5 4.1 .7 100 White 76.8 13.7 8.6 .9 100 74.0 21.1 4.4 .5 100 Other 62.6 24.2 11.0 2.2 100 58.6 34.2 6.3 .8 100 Joint (white/minority) 70.7 18.8 9.5 .9 100 69.3 25.2 4.8 .6 100 Income (percentage of MSA median)3 Less than 80 69.3 20.6 9.2 1.0 100 59.2 35.7 4.7 .5 100 80-99 75.1 15.9 8.2 .9 100 67.0 27.6 4.8 .5 100 100-120 76.3 14.6 8.2 .9 100 69.8 24.7 4.9 .6 100 More than 120 75.5 14.3 9.1 1.1 100 72.3 21.5 5.3 .8 100 by the Federal Reserve Bank of Boston docu- eral Reserve Bank of Boston augmented the mented differences in lending patterns across HMDA data with information for about 1,000 black neighborhoods grouped by their racial composi- and Hispanic applicants who had applied for contion. 13 That study was based primarily on informa- ventional home purchase loans in the Boston area tion from records of property transfers and on data in 1990 and for a control sample of roughly 3,100 about neighborhood characteristics from the 1980 white applicants. The additional data were re- U.S. census of population and housing. Information quested from the 131 financial institutions that had about individual borrowers or loan applicants was received twenty-five or more mortgage applicaunavailable to the researchers. The study found tions, from among 352 lenders that had filed 1990 that, after controlling for a wide variety of factors HMDA data for the Boston metropolitan area. related to the economic characteristics of neighbor- Lenders assembled data for applicants identified by hoods, the number of mortgage originations rela- the Federal Reserve Bank and reported thirty-eight tive to the number of owner-occupied housing units additional pieces of information about each one was 24 percent lower in predominantly black pertaining to financial characteristics, employment neighborhoods in Boston than in predominantly experience, and credit history. The data were items white areas. The researchers could not, however, available to the lender on residential loan applicaconclude with certainty the causes of the observed tion forms, credit bureau reports, and loandifferences in lending. underwriting worksheets. With the release last year of the expanded The study revealed substantial differences in the HMDA data, some limited information about loan financial and other economic circumstances of typapplicants became available. For 1990, the HMDA ical white applicants and those of minority applidata for the metropolitan Boston area revealed a cants, and in the types of properties and characterratio of nearly three rejections for blacks and His- istics of the loans they sought. For instance, panics to one for white applicants. To understand minority applicants on average had weaker credit the significance of these numbers better, the Fed- histories, fewer liquid assets, and lower net worths and incomes than white applicants. Minority households were also typically seeking to purchase properties with lower assessed values; as a conse- 13. Katherine L. Bradbury, Karl E. Case, and Constance R. Dunham, "Geographic Patterns of Mortgage Lending in Boston, quence, their ratio of monthly housing expense to 1982-1987," Federal Reserve Bank of Boston, New England Eco- monthly income (one key qualifying ratio) was nomic Review (September/October 1989), pp. 3-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

810 Federal Reserve Bulletin • November 1992 5. Disposition of home loan applications, by purpose of loan and characteristics of census tract in which property is located, 19911 Percentage distribution Home purchase Census tract Government-backed2 Conventional characteristic With- With- Approved Denied File closed Total Approved Denied File closed Total drawn drawn Racial composition (minorities as percentage Less than 10 .v 80.1 11.1 7.8 •9 100 79.4 12.1 7.8 .7 100 10-19 61.8 30.6 6.9 .8 100 62.6 28.1 8.5 .8 100 20-49 73.1 15.6 10.1 1.3 100 69.5 18.9 10.4 1.2 100 50-79 68.7 18.5 11.3 1.5 100 65.6 22.5 10.6 1.4 100 80-100 66.0 20.5 11.9 1.7 100 59.9 27.4 11.2 1.6 100 Income3 Low or moderate 71.1 17.1 10.5 1.3 100 66.1 22.4 10.3 1.2 100 Middle 71.6 20.0 7.6 .9 100 71.5 19.8 8.0 .8 100 Upper 79.5 10.9 8.6 1.0 100 79.8 10.5 8.8 .9 100 1. Components may not sum to totals because of rounding. metropolitan statistical area (MSA) as a whole; in middle-income census 2. Loans backed by the Federal Housing Administration, the Veterans tracts, median family income is 80 percent to 120 percent of the median Administration, and the Farmers Home Administration. MSA family income; in upper-income census tracts, median family income 3. Low- or moderate-income census tracts are those in which median is more than 120 percent of the median MSA family income. family income is less than 80 percent of the median family income of the SOURCE. FFIEC, Home Mortgage Disclosure Act. quite similar to that of white applicants. Other accounted for much of the disparity that was apparsubstantial differences between the two groups ent in the HMDA data, but they do not appear to were that minority applicants were much more explain it entirely. Specifically, the study found that likely to be seeking to buy two- to four-family if minority applicants had the same economic and properties than single-family properties and were property characteristics as white applicants (theremore often applying for loans with high loan-to- by differing only by race), they would have experivalue ratios, most of which required private mort- enced a denial rate of 17 percent, compared with gage insurance for approval. Black and Hispanic 11 percent for whites. Stated another way, the applicants were also more likely than whites to be analysis indicates that the denial rate for minority seeking a loan under special lending programs applicants would have been 20 percent if the race offered in the Boston market in 1990. of the applicant had not been a factor—compared One of the more revealing findings of the study with the actual denial rate of 28 percent revealed was that most applicants—both minority and by the HMDA data. white—had some flaw in their credit histories (such The findings of the study suggest that greater as a record of late payment on debts) or exceeded attention is needed to ensure the fairness of the the basic debt burden guidelines for acceptable mortgage-granting process. The degree to which qualifying ratios (such as total obligations to the findings reflect outright discrimination by indiincome). Nonetheless, roughly 85 percent of all vidual loan officers and financial institutions in the market remains unclear. The regulatory agencies applicants in the study had been approved for loans, will follow up with on-site examinations in Boston indicating that underwriters routinely considered to assess further the fairness of mortgage lending. compensatory factors. Statistical analysis of the data revealed that, after controlling for significant economic factors affecting mortgage-lending decisions, there were unex- New York State's Review of 1989 Data plained differences in loan approval rates for blacks, Hispanics, and whites among the surveyed In March 1992, the New York State Banking mortgage lenders as a group. Economic differences Department released the findings of a study of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Expanded HMDA Data on Residential Lending: One Year Later 811 5.—Continued Census tract characteristic Racial composition (minorities as percentage ofpopulation) Less than 10 10-19 20-49 50-79 80-100 Income3 Low or moderate Middle Upper mortgage-lending practices of ten savings banks in criteria were generally in line with industry and metropolitan New York.14 The department exam- secondary market standards. In some of the other ined the banks' mortgage loan files in detail, focus- institutions, the standards were more stringent ing on the treatment of minority and female appli- than the industry norm and hence could discants and of applicants seeking to buy homes in advantage minorities, women, and lower-income areas of low income and in those with high percent- applicants. Specific policies in question included a ages of minorities. It first reviewed the underwrit- maximum fifteen-year maturity on mortgages ing criteria that the lending institutions used, to (which could require higher monthly payments than determine whether they were in keeping with or a person with low income could afford), the more restrictive than industry and secondary mar- requirement of a 20 percent down payment, and the ket standards. It then considered the actual applica- charging of nonrefundable fees to applicants who tion of the criteria, to determine whether they were could have been turned away after a preliminary consistently applied or whether exceptions had review. been made—or not made—in a way that indicated The department's report noted ways in which the discriminatory treatment. banks could better serve the credit needs of minori- Based on its evaluation of approved and rejected ties, women, and areas heavily populated by minorapplications, the banking department concluded ities. Suggestions included a review to ensure that that banks had applied their underwriting standards underwriting standards are not overly restrictive with consistency and in a nondiscriminatory man- and a second review for denied applications to ner. Exceptions were supported by evidence of determine whether, like those that are approved significant differences in creditworthiness between despite falling short of the stated criteria, they minority applicants who were denied and white might have other favorable characteristics warrantapplicants who were approved although they did ing loan approval. The department also identified not meet the banks' underwriting standards. the need for banks to consider modifying loan- The banking department also determined that, qualifying ratios and maximums for low-income for six of the ten institutions, the underwriting households, which typically spend a significantly greater proportion of their income on housing costs. Banks were urged also to reevaluate their commu- 14. Ernest Kohn, Cyril E. Foster, Bernard Kaye, and Nancy J. nity outreach programs and to consider offering Terris, "Are Mortgage Lending Policies Discriminating?—A Study FHA loans to applicants who might not qualify for of 10 Savings Banks," New York State Banking Department conventional loans. (March 1992). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

812 Federal Reserve Bulletin • November 1992 6. Disposition of home loan applications, by purpose of loan and income and race of applicant, 19911 Percentage distribution Home purchase Applicant Government-backed3 Conventional income2 and race With- With- Approved Denied File closed Total Approved Denied File closed Total drawn drawn Less than 80 American Indian/ Alaskan native 61.0 28.6 9.3 1.2 100 53.9 38.6 6.4 1.1 100 Asian/Pacific Islander 72.3 15.2 11.2 1.3 100 68.5 20.2 10.4 1.0 100 Black 58.8 30.1 9.4 1.7 100 44.9 48.2 6.2 .7 100 Hispanic 64.6 23.9 9.9 1.6 100 54.0 37.1 7.8 1.1 100 White 67.3 25.2 6.6 .8 100 61.7 31.5 6.2 .6 100 Other 68.9 17.7 11.8 1.6 100 63.0 28.1 8.1 .8 100 Joint (white/minority) 67.1 23.5 8.4 1.0 100 59.2 33.2 7.2 .4 100 80-99 American Indian/ Alaskan native 68.5 18.8 11.5 1.2 100 69.4 19.9 9.7 1.0 100 Asian/Pacific Islander 78.8 10.3 9.8 1.2 100 75.8 13.9 9.1 1.2 100 Black 66.8 22.1 9.4 1.7 100 60.7 30.0 8.1 1.2 100 Hispanic 70.8 17.1 10.5 1.6 100 64.9 25.3 8.7 1.1 100 White 79.5 12.5 7.2 .9 100 77.0 15.3 7.0 .7 100 Other 69.4 14.4 15.2 1.0 100 69.7 19.3 10.1 .8 100 Joint (white/minority) 76.4 14.8 7.9 .9 100 72.9 18.5 7.8 .8 100 100-120 American Indian/ Alaskan native 71.2 15.0 11.1 2.6 100 73.9 17.1 8.0 1.0 100 Asian/Pacific Islander 78.7 9.8 10.6 1.0 100 75.5 13.7 9.5 1.3 100 Black 66.9 22.1 9.4 1.6 100 63.9 26.1 8.8 1.3 100 Hispanic 71.2 16.0 11.3 1.4 100 67.0 22.3 9.6 1.1 100 White 81.0 10.9 7.3 .9 100 79.9 12.2 7.2 .7 100 Other 75.9 10.3 10.3 3.5 100 70.1 18.3 10.6 1.0 100 Joint (white/minority) 79.1 12.0 7.9 1.0 100 75.0 15.0 9.3 .7 100 More than 120 American Indian/ Alaskan native 69.8 15.3 13.2 1.7 100 73.4 15.7 9.7 1.2 100 Asian/Pacific Islander 78.3 10.6 10.2 1.0 100 74.3 13.6 10.8 1.3 100 Black 69.3 19.5 9.7 1.4 100 66.0 23.2 9.6 1.1 100 Hispanic 75.7 13.3 9.6 1.4 100 68.5 19.8 10.5 1.3 100 White 81.8 9.7 7.5 1.0 100 81.0 9.7 8.5 .8 100 Other 73.2 15.4 9.1 2.4 100 70.4 16.6 11.6 1.4 100 Joint (white/minority) 79.2 11.3 8.9 .6 100 76.8 12.6 9.9 .7 100 1. Components may not sum to totals because of rounding. 3. Loans backed by the Federal Housing Administration, the Veterans 2. Applicant income shown as percentage of the median family income of Administration, and the Farmers Home Administration. the metropolitan statistical area in which the property related to the loan is SOURCE. FFTEC, Home Mortgage Disclosure Act. located. REGULATORY EFFORTS: patterns. In October, they issued a joint statement ENFORCEMENT OF FAIR LENDING AND CRA that addressed the issue of disparate treatment, attempting to shift the focus from a debate about Federal regulators are expanding data analyses to whether unequal treatment is occurring to initiastrengthen enforcement of fair lending and of tives that will ensure fair lending practices. compliance with the Community Reinvestment Act (CRA).15 Acting in concert, the agencies are developing techniques using automated access to the Interagency Statement on Disparate data in looking for evidence of differential treat- Treatment in Mortgage Lending ment. Through these efforts they are also seeking to identify the factors that underlie disparate lending In a joint statement dated October 9, 1992, the regulatory agencies outlined initiatives for ensuring 15. The CRA requires federal agencies to encourage depository that minorities have equal access to home lending institutions to help meet the credit needs of their communities, and reemphasized concerns about fair treatment including low- and moderate-income neighborhoods, in a manner of applicants for mortgage loans. The statement consistent with safe and sound lending practices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Expanded HMDA Data on Residential Lending: One Year Later 813 6.—Continued Home refinancing Home improvement AApppplliiccaanntt iinnccoommee22 aanndd rraaccee With- With- Approved Denied File closed Total Approved Denied File closed Total drawn drawn Less than 80 American Indian/ Alaskan native 62.1 26.4 10.1 1.4 100 65.5 30.4 3.8 .3 100 Asian/Pacific Islander 64.4 23.5 10.8 1.3 100 50.2 41.9 7.1 .8 100 Black 55.7 32.6 10.4 1.4 100 46.5 48.8 4.1 .5 100 Hispanic 56.9 30.4 11.4 1.2 100 48.8 46.6 4.0 .7 100 White 73.4 18.0 7.9 .7 100 69.2 26.5 4.0 .3 100 Other 56.5 31.6 10.3 1.6 100 50.9 43.6 5.0 .5 100 Joint (white/minority) 65.1 24.4 9.7 .8 100 61.7 33.2 4.7 .4 100 80-90 American Indian/ Alaskan native 67.4 21.8 10.2 .6 100 71.7 23.0 4.8 .4 100 Asian/Pacific Islander 71.6 18.4 8.6 1.4 100 59.7 31.9 7.4 1.0 100 Black 59.5 29.4 10.1 1.0 100 51.0 43.9 4.4 .7 100 Hispanic 62.1 26.3 10.5 1.2 100 55.2 40.4 3.7 .7 100 White 78.5 13.5 7.3 .7 100 75.1 20.4 4.1 .4 100 Other 62.0 24.5 12.2 1.3 100 57.1 37.1 5.5 .3 100 Joint (white/minority) 70.2 20.9 8.4 .5 100 67.1 28.9 3.5 .6 100 100-120 American Indian/ Alaskan native 66.9 21.3 10.8 .9 100 71.7 23.8 3.9 .6 100 Asian/Pacific Islander 72.5 17.0 9.2 1.4 100 58.9 31.9 7.9 1.4 100 Black 58.9 29.3 10.6 1.3 100 54.2 40.1 5.0 .6 100 Hispanic 62.1 26.0 10.9 1.0 100 57.8 37.4 3.9 .8 100 White 79.6 12.3 7.4 .7 100 76.8 18.6 4.2 .4 100 Other 67.5 22.2 8.8 1.5 100 63.9 28.2 6.8 1.1 100 Joint (white/minority) 72.4 18.4 8.4 .8 100 71.1 23.7 4.8 .3 100 More than 120 American Indian/ Alaskan native 68.6 19.3 10.7 1.5 100 73.5 20.1 6.0 .4 100 Asian/Pacific Islander 69.1 18.5 10.4 2.0 100 62.0 29.4 7.2 1.3 100 Black 60.6 27.7 10.5 1.2 100 59.1 34.9 5.3 .7 100 Hispanic 62.2 24.8 11.5 1.6 100 61.4 33.6 4.4 .6 100 White 78.3 12.4 8.4 .9 100 78.4 16.3 4.7 .6 100 Other 64.9 22.9 10.6 1.6 100 62.4 30.0 6.6 1.0 100 Joint (white/minority) 72.5 17.4 9.1 .9 100 72.9 21.5 5.0 .6 100 pointed to increased evidence that the differences ment; development of training programs to ensure in loan approval rates between white and minority fair treatment of prospective borrowers; credit home mortgage applicants that characterize some counseling for groups of prospective loan applilending may be unwarranted by economic factors. cants; participation on mortgage review boards; The agencies believe it is time to move beyond and use of "shoppers" hired by an institution debating about whether unequal treatment may be to test its personnel's adherence to its own taking place to discussing efforts to ensure that procedures.16 minorities have equal access to credit. Achieving this objective, they noted, will require action by the supervisory agencies and by financial institu- 16. Mortgage review boards are organizations in which participating lenders review the underwriting decisions on loan applications and their trade associations—to refine and tions. The objective of a mortgage review board is to help ensure strengthen enforcement of fair-lending laws, to nondiscriminatory treatment of loan applicants and to encourage provide needed education and training, and to iden- additional lending. For example, in the Delaware Valley Mortgage Plan implemented by lenders in the Philadelphia area, reviews are tify and promote successful techniques that ensure automatically obtained before the lender denies an application. (For equal treatment of loan applicants. For lenders, an evaluation of this plan, see Paul S. Calem, "The Delaware initiatives might include the use of internal systems Valley Mortgage Plan: An Analysis Using HMDA Data," Federal Reserve Bank of Philadelphia, Working Paper No. 92-3, February to conduct independent second reviews of denied 1992.) In Boston and Detroit, loan applicants can appeal decisions applications from minorities to ensure fair treat- to the review boards after being turned down. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

814 Federal Reserve Bulletin • November 1992 Fair-Lending and CRA Compliance • The geographic distribution of the institution's credit applications, extensions, and denials In evaluating compliance with the fair-lending • The institution's record of originating or purlaws, bank examiners assess mortgage decisions in chasing residential mortgage loans, housing rehathe context of the lending institution's underwriting bilitation credit, home improvement loans, and standards. They look at a sample of approved and loans to small businesses and farms within its denied applications and check whether an institu- community tion, in applying its lending criteria, has imple- • Evidence of prohibited, discriminatory, or mented standards consistently and fairly, particu- other illegal credit practices. larly in its treatment of minority applicants. When examiners find exceptions, they seek to determine Community activists, who frequently use the whether differences in the decision to grant or deny protest mechanism offered by the CRA to voice credit have a legitimate basis or whether they sugpublicly their concerns about an organization's pergest discriminatory treatment that warrants further formance, often rely on HMDA data in assessing investigation. Because they have access to all of a the lending performance of banks doing business in lender's files on loan applications and to related their neighborhoods or seeking to merge with or information, agency staff overcome most of the acquire a local institution. The HMDA data can limitations of the HMDA data regarding applicant help the agencies assess the merits of specific procreditworthiness and property characteristics. tests about an institution's performance regarding The new HMDA data enable the banking regulaapplications for charters, deposit insurance, branch tors to augment the procedures already in place for or other deposit facilities, office relocations, mergidentifying loan application samples for review, to ers, and acquisitions. In the past year, the agencies target lending institutions for more intensive examdenied three applications because of the instituination of lending policies and practices, and to tions' CRA performance. In numerous other cases, make peer comparisons of lending patterns. The they approved applications with conditions and data provide the basis for the use of more heavily commitments made by the applicants relating to computerized and sophisticated statistical tools. their CRA performance. Through sorting capabilities in the analytical soft- In related areas, the agencies have taken the ware they use, for instance, the regulators can following actions in the past year: readily determine the race or ethnic origin of borrowers and applicants for purposes of comparison. The FFIEC has retained an outside consultant to • In March 1992, the agencies amended the review the agencies' programs of civil rights CRA guidelines to make clear that examiners enforcement. The consultant will look at current should view favorably an institution's working training and examination procedures and will sug- through minority financial institutions to help serve gest improvements. In the meantime, the FFIEC's the credit needs of lower-income and minority task force on consumer compliance is revising the households. policy statement that sets some common guidelines • The FFIEC issued a policy statement in for the agencies' enforcement of ECOA and the December 1991 encouraging financial institutions Fair Housing Act. The task force is also working to analyze the geographic distribution of their prodon the supervisory enforcement policy for these ucts as part of their CRA process, to help ensure two statutes; this statement spells out the types of that residents of minority and low-income areas are corrective action required to prevent violations adequately served. from recurring and to correct conditions that result • The agencies distributed to the institutions that from violations. they supervise a brochure prepared by the FFIEC, Historically, examiners have also used the "Home Mortgage Lending and Equal Treatment," HMDA data to help assess lenders' compliance to caution lenders about practices that may result in according to twelve criteria established by the reg- discrimination (see box on lender education.). In ulations that implement the CRA. The criteria 1991, the Federal Reserve published a companion include the following: brochure entitled "Home Mortgages: Understand Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Expanded HMDA Data on Residential Lending: One Year Later 815 Lender Education The FFIEC's brochure "Home Mortgage Lending and • Employment stability. Standards that require a Equal Treatment," published in March 1992, alerts lend- fixed number of years on the same job may exclude ers to subtle forms of discrimination that may occur individuals who have consistent employment but not despite an institution's stated policy of fair lending. It necessarily with one employer. suggests that lenders take a closer look at long-accepted • Credit record. For some consumers, particularly practices in loan origination, underwriting, appraisal, and those with low income, credit performance may not marketing that can have discriminatory effects, such as appear on the standard credit reports. But financial the following: responsibility may be adequately reflected in years of timely payments on nondebt obligations, such as rent and • Property standards and minimum loan amounts. utilities. Setting limits on the maximum age or minimum size of the property may exclude homes in minority and low- • Origination practices. Certain practices may affect income areas, especially in urban centers characterized the treatment of minority applicants in the loan originaby older and smaller dwellings. So may minimum loan tion process. For example, because of preconceptions or amounts that are unrealistically high for these areas. a perceived corporate bias, a loan officer may steer pro- Sometimes lenders believe loans must be of a certain size spective applicants for conventional loans to other to qualify for purchase on the secondary market. Neither sources of financing such as FHA loans or to other FNMA nor FHLMC has a standard for minimum loan lenders when such actions may not be in the consumers' amount that prevents their purchasing small mortgage best interest. loans. • Appraisal practices. Appraisal practices may have • Subjective criteria. Standards that are not stated a discriminatory effect if they are unduly conservative in objectively may produce varying interpretations among some neighborhoods and may result in rejections or in lending personnel and allow them to reach different con- the granting of reduced loan amounts for properties in clusions based on personal perceptions. Such standards minority areas. may include calling for property that is in a "stable" area or a "desirable neighborhood" or for applicants who • Marketing strategies. The absence of contact with have an "excellent" credit history. The use of such terms realtors who serve minority communities or borrowers may also discourage some consumers from applying for may be perceived as reluctance on the part of the lender loans. to serve minorities. • Differential credit terms. Different length of loans, • Private mortgage insurance. If private mortgage different fees on various sizes of loans, or different insurance companies apply underwriting standards that required down payments—when applied to specific are excessively conservative or rigid, the effect may be neighborhoods—may be discriminatory. discriminatory. ing the Process and Your Right to Fair Lending" to each covered institution to adopt a branch-closing inform consumers about the mortgage application policy and to provide ninety days' notice of any process and about their rights under fair-lending proposed branch closing to its customers and to the and consumer protection laws. appropriate federal regulator. The notice to the • The Federal Reserve and the FDIC have initi- regulator must include a detailed statement of the atives under way to develop a computer-based reasons for the decision to close the branch and mapping technology that will assist examiners in statistical information to support the decision. A matching a bank's lending activity with the bound- notice of the decision must be posted at the branch aries of its delineated community. thirty days before its closing. • The agencies are publishing, for public com- • The Federal Reserve Board will consider the ment, proposed policy statements on branch clos- implementation later this year of an amendment to ings to guide depository institutions in complying the ECOA—also contained in FDICIA—that gives with section 228 of FDICIA. This new law requires mortgage applicants the right to a copy of appraisal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

816 Federal Reserve Bulletin • November 1992 reports used in evaluating their applications for credit issues, and are often developed in conjunchome purchase and home improvement loans. tion with state bankers' associations. • In June 1992, the Federal Reserve's Consumer • Giving presentations at meetings of banking Advisory Council urged the lending industry and associations and of housing, community, and the regulatory community to close the deliberations economic-development groups. During 1991, for on whether discrimination exists in mortgage lend- example, the community affairs staff of the Federal ing and to begin discussing how best to detect and Reserve System made more than 315 presentations remedy the problem. on topics related to community-development finance, community reinvestment, home mortgage The HMDA data have also focused attention on and small-business lending, and discrimination the enforcement of civil rights laws by other regu- issues. latory agencies. During 1991, the banking agencies • Producing newsletters and other publications. began meetings with the Department of Justice, Agency publications feature information on banks' HUD, and the Federal Trade Commission. These community-development lending programs and on meetings have provided an opportunity to coordi- public-private partnerships of community developnate enforcement of the fair-lending laws and may ment in which banks can participate. lead to the adoption of new techniques for deter- • Undertaking special projects and providing mining whether illegal discrimination against credit- technical assistance. Community affairs programs worthy applicants is occurring. develop projects that provide information and tech- Amendments to the Fair Housing Act in 1990 nical assistance to banks and others. The Federal strengthened HUD's enforcement authority, and Reserve System, for example, has undertaken sev- HUD and the regulatory agencies have agreed eral programs to assist banks in developing mort- (in a memorandum of understanding) to refer to gage and small-business lending consortiums that each other and to coordinate investigation of com- help increase credit availability in lower-income plaints alleging fair-housing violations. The bank- and minority areas. Several Federal Reserve Banks ing agencies also are exploring ways to cooperate also publish "community profiles" that provide with the Department of Justice in detecting possi- information on local economies, demographics, and ble patterns of discrimination against minority key programs and groups active in affordableapplicants. housing development, small-business development, neighborhood revitalization, and related issues. Community Affairs Programs EXPANDING OPPORTUNITIES: PRACTICAL RESPONSES FROM LENDERS AND OTHERS The banking agencies conduct educational and informational programs to promote fair lending and The financial services industry continues to address to foster affordable housing and small-business the questions of how and to what extent unlawful lending, frequently on an interagency basis. The discrimination takes place in mortgage lending. Federal Reserve System, the FDIC, and the OCC Industry trade associations and individual lenders conduct—primarily through community affairs are also focusing on ways to improve access to programs—ongoing outreach and educational achome mortgages for minorities and lower-income tivities to help banks and the public better underapplicants. stand and deal with community credit issues, including discrimination. These activities fall primarily into four categories: Trade Association Task Forces • Sponsoring conferences and workshops for Several of the national trade associations have and with bankers and community and business formed HMDA task forces to evaluate the issues of representatives. These programs focus on issues accessibility raised by the HMDA data and have and opportunities concerning community reinvest- sought to identify areas that members could ment, community-development lending, and related address. For example, the American Bankers Asso- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Expanded HMDA Data on Residential Lending: One Year Later 817 ciation (ABA) has created a center for community with interpretations and applications, are based on development to provide member banks with a historical data that reflect primarily nonminority clearinghouse of information and products that participants in mortgage loans, and thus they may could help increase the availability of mortgage unintentionally reflect racial bias; and (3) members loans to creditworthy minority and low- and of minority groups may receive unequal treatment moderate-income applicants. Key components of in the prequalification and loan application stages the association's plan for the center include the of the lending process. following: According to the report, third parties may contribute to the lender's loan decisions; therefore, • Lender training. The center will develop lenders should take steps to show their commitresources to help bankers conduct community- ment to nondiscriminatory practices, such as development lending and will work with govern- emphasizing to real estate brokers their desire to ment agencies, nonprofit organizations, and other meet the credit needs of all applicants; becoming development groups; it will provide training in aware of the fair-lending policies of mortgage preventing subtle, unintended forms of discrimina- brokers with whom they do business; and monitortion. The ABA currently makes available a video, ing appraisal reports carefully to ensure that they "Fair Lending Compliance: Understanding Equal contain no overt or veiled adverse references to Treatment," developed to help lenders avoid dis- minority neighborhoods. The task force also criminatory treatment of applicants. strongly recommended that lenders develop an • Borrower education. To better inform mort- internal program to test for discrimination at both gage applicants about the lending process, the cen- the preapplication and the application stages of the ter will prepare educational materials, including loan process and that all applications resulting in a brochures for borrowers and a guidebook showing denial of credit receive an additional review before bankers how to develop mortgage and credit edu- a final decision is reached. cation programs for current and prospective The MBA plans a nationwide series of one-day customers. seminars at which members can discuss the recent • Information exchange. The center is compiling updates to underwriting guidelines used by the detailed information about successful community secondary market agencies, including the clarifilending efforts and will coordinate an information cation of eligibility, appraisal, and underwriting exchange, with a toll-free telephone number, to requirements. The MBA will also disseminate facilitate referrals. information about innovative mortgage loan prod- • Interindustry coordination. The center will ucts that are designed to improve financing opporcoordinate efforts with secondary market agencies, tunities for qualified low- and moderate-income private mortgage insurers, appraisers, and others to homebuyers. increase the flexibility of the mortgage process. In September 1992, the Mortgage Bankers Asso- Initiatives to Promote Affordable Housing ciation of America (MBA) issued the "HMDA Task Force Report" to heighten awareness of issues Financial institutions across the country have of mortgage availability, encourage lender self- developed many creative activities in partnership analysis, and provide guidance on ways in which with each other and in conjunction with local commembers could increase their loan approval rates, munity organizations. These efforts are assisting particularly for black and Hispanic applicants. banks in making credit available to their entire Three of the task force's findings were that communities. The following programs are repre- (1) many mortgage companies are conservative in sentative of numerous efforts by financial instituapplying the underwriting guidelines of the second- tions, individually and jointly, to address the need ary market and of the FHA and VA because of for affordable housing: concerns about forced repurchase and indemnification of loans approved under nontraditional • Statewide lending consortiums developed in guidelines; (2) underwriting guidelines, together California, Washington, Nevada, and Hawaii create Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

818 Federal Reserve Bulletin • November 1992 a pool of fixed-rate, long-term mortgage funds for crimination in individual cases. The results of testlow- and moderate-income housing. ing programs in housing (and more recently in • A large multiregional institution has devel- employment) have identified patterns in the United oped community partnerships in each of its markets States of unequal treatment of blacks and Hispanics with nonprofit organizations that provide home- compared with that of whites.17 In the sale and buyer education and training for first-time home- rental of homes, the testing technique has long buyers. The nonprofit organizations are paid by the been used to provide proof of discriminatory treatbank for each participant who completes the train- ment against individuals and to detect patterns of ing program, and program graduates receive cards differential treatment based on race or ethnic origin. that entitle them to apply for a specific, affordable The traditional testing method is to use pairs of mortgage product from the bank. individuals matched in all relevant respects except • In Houston, financial institutions have created for the particular characteristic under investigation, a partnership with the Consumer Credit Counseling such as race. These testers, whose constructed iden- Service and two credit-reporting services to offer a tities (including financial, housing, and family charcourse on the fundamentals of good credit. Com- acteristics) help ensure as much comparability as pletion of the course is noted on participants' credit possible, successively approach lenders to simulate reports for the benefit of any institutions to which the search (or to "shop") for mortgage credit. A they may apply. Participants are helped to develop comparison of the treatment that the testers encouna plan for correcting credit problems and for keep- ter serves as one basis for detecting differences in ing their credit clean. treatment that may be systematically related to the • In Burton, Michigan, a neighborhood housing characteristic under study and that may violate the service in conjunction with local lenders has Fair Housing Act or the ECOA. developed a "homebuyers club" that offers coun- In mortgage lending, preapplication testing has seling and training for potential homebuyers on the been carried out under several HUD-financed pilot borrowing process, underwriting criteria, and new projects to address the concern that unlawful prachomeowners' responsibilities. tices may occur that are otherwise impossible to • In Washington, D.C., a local bank in partner- discern because no paper trail exists. The pilot tests ship with a community organization offers "com- carried out to date suggest there may be some munity loan days" in low- and moderate-income degree of racially differential treatment at the preneighborhoods. The event offers seminars on how application stage. to obtain credit, and a major credit-reporting service offers advice on how to read credit reports and HUD's Fair-Housing and how to correct erroneous entries. Loan officers Mortgage-Testing Program representing the bank's major product lines take applications for loans, and bank employees in Several initiatives have taken place in rental and minority procurement explain the way to bid on sales testing through HUD's funding of the Fair bank contracts. City government representatives provide information on city programs and loans. 17. For the results of housing testing programs, see Ronald E. Wienk, Clifford E. Reid, John C. Simonson, and Frederick J. TESTING INITIATIVES Eggers, Measuring Racial Discrimination in American Housing Markets, (U.S. Department of Housing and Urban Development, Among mechanisms for ensuring fair lending, the Office of Policy Development and Research, April 1979); and John Yinger, Housing Discrimination Study: Incidence and Severity of use of testing continues to be suggested as a way of Unfavorable Treatment (HUD, Office of Policy Development and identifying the presence of unequal treatment based Research, November 1991). For the results of employment testing on race or national origin or any other characteris- programs, see H. Cross, G. Kenney, J. Mell, and W. Zimmerman, Employer Hiring Practices: Differential Treatment of Hispanic and tic protected under the ECOA or the Fair Housing Anglo Job Seekers, Report 9-4 (Urban Institute, 1990); U.S. Gen- Act. Historically, testing efforts have included both eral Accounting Office, Immigration Reform: Employer Sanctions research testing, designed to assess the incidence of and the Question of Discrimination (GAO, 1992); and Margery A. Turner, Michael Fix, and Raymond J. Struyk, Opportunities possible differential treatment, and enforcement Denied, Opportunities Diminished: Discrimination in Hiring, testing, designed to establish proof of possible dis- Report 91-9 (Urban Institute, 1991). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Expanded HMDA Data on Residential Lending: One Year Later 819 Housing Initiatives Program. In 1993, HUD will the institution located in nonminority, middlecompetitively award $1 million to fund a testing income neighborhoods. Each bank branch was visproject on mortgage-lending practices. Nonprofit ited separately by a white and a minority shopper. organizations and other private entities were invited The research firm characterized the survey results in August 1992 to submit proposals to identify as revealing subtle forms of discrimination on the specific unlawful discriminatory acts or practices part of bank representatives. Differences were that prevent or impede minorities from obtaining noted, for example, in the amount of information financing for the purchase of homes.18 The project, given to minority shoppers, in the time spent with which will support testing in three metropolitan minority shoppers, and in the effort to inform areas, is expected to produce a method for testing minorities about alternative mortgage products. mortgage-lending practices and for providing evidence of the existence or nonexistence of discriminatory lending based on race and national origin. RECENT ACTIVITIES INVOLVING THE HUD also continues to issue contracts to state and SECONDARY MORTGAGE MARKET local agencies and fair-housing groups to conduct testing for the detection of discrimination in the Institutions in the secondary mortgage market play sale and rental of homes. a prominent role in the U.S. housing market by HUD's objective is to examine whether and to promoting the standardization of the home-lending what extent testing techniques provide credible process and ensuring a reliable supply of credit to evidence of differential treatment of mortgage lend- loan originators. They provide a means by which ing at the preapplication stage of the loan process. the originators of home loans can sell assets that The information will form one component in more are otherwise relatively illiquid and obtain funds to comprehensive investigations of fair-lending dis- provide new credit to homebuyers. An active seccrimination conducted by HUD's Office of Fair ondary market also stimulates competition among Housing and Equal Opportunity. loan originators by encouraging new firms to enter the home-lending market. Three government-sponsored mortgage enter- Self-Testing by Lenders prises (GSEs) dominate secondary market activities—the Federal National Mortgage Associa- Some banking institutions are undertaking pro- tion (FNMA), the Federal Home Loan Mortgage grams for self-testing, a concept that received Corporation (FHLMC), and the Government endorsements in 1992 from the lending industry National Mortgage Association (GNMA). FNMA and from two members of the Federal Reserve and FHLMC are publicly chartered private entities, Board.19 The MBA's HMDA task force strongly whereas GNMA is a government-owned agency. In recommended, in its September 1992 report, that 1991, the three accounted for 71 percent of the lenders develop an internal program to test for roughly 3 million loans sold into the secondary discrimination in mortgage lending at both the market by lenders covered by HMDA; in 1990, prequalification and the application stages. they accounted for 70 percent (table 7). Other types A report early in 1992 publicized a survey by a of institutions—such as pension funds, insurance market research firm that had been hired by a companies, mortgage companies, and depository banking institution. Interviewers, posing as poten- institutions—are also active secondary market partial mortgage customers, visited fifty branches of ticipants; they provide an outlet for so-called "jumbo loans" (those exceeding the loan-size limits used by the GSEs) and other loans that may not 18. Notice of funding availability for "Major Testing Project on Mortgage Lending Practices," Federal Register, vol. 57 (May 18, conform to the underwriting standards set by the 1992), pp. 21127-32. GSEs. 19. Lawrence B. Lindsey, "The Future of Banking: Choosing the Right Model" (speech at the California Bankers Association, Basic underwriting guidelines (those, for May 11, 1992); and John P. LaWare, "Giving Due Credit Where instance, applying to acceptable monthly debt-to- Credit Is Due" (speech at the Conference on Credit and the income and maximum loan-to-value ratios) differ Economically Disadvantaged, Federal Reserve Bank of Kansas City, October 8, 1992). among the secondary market participants, although Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

820 Federal Reserve Bulletin • November 1992 7. Mortgage loans sold, by type of purchaser, characteristics of borrower, and characteristics of census tract in which property is located, 19911 Number and percentage distribution, except as noted Federal National Government National Federal Home Loan Farmers Home Borrower or census tract Mortgage Assn. Mortgage Assn. Mortgage Assn. Admin. cchhaarraacctteerriissttiicc Number Percent Number Percent Number Percent Number Percent Number Percent Total loans sold 880,402 636,954 603,776 1,965 66,833 Race of borrower American Indian/ Alaskan native 2,447 .4 1,325 .4 1,827 .4 4 .2 266 .4 Asian/Pacific Islander 28,958 4.3 5,094 1.6 29,989 6.0 97 5.4 1,179 2.0 Black 15,917 2.3 26,632 8.4 10,024 2.0 47 2.6 4,049 6.7 Hispanic 26,294 3.9 21,205 6.7 23,488 4.7 38 2.1 2,508 4.2 White 586,907 86.6 251,779 79.8 422,854 84.3 1,563 86.9 50,957 84.5 Other 4,700 .7 1,176 .4 3,319 .7 9 .5 231 .4 Joint (white/minority) 12,807 1.9 8,270 2.6 10,284 2.0 40 2.2 1,140 1.9 Total 678,030 100 315,481 100 501,785 100 1,798 100 60,330 100 Income of borrower (percentage of MSA median)2 Less than 80 76,994 13.4 80,344 30.7 56,356 13.1 351 20.4 11,268 23.9 80-99 72,658 12.6 55,147 21.1 53,575 12.5 243 14.1 7,780 16.5 100-120 84,901 14.7 46,383 17.7 63,632 14.8 232 13.5 6,943 14.7 More than 120 342,063 59.3 79,698 30.5 256,472 59.6 897 52.1 21,158 44.9 Total 576,616 100 261,572 100 430,035 100 1,723 100 47,149 100 Racial composition of census tract (minorities as percentage of population) Less than 10 443,069 65.9 256,691 58.6 292,857 61.3 1,009 59.8 33,413 64.8 10-19 117,099 17.4 86,672 19.8 91,522 19.1 374 22.2 9,124 17.7 20-49 77,932 11.6 64,186 14.6 64,660 13.5 225 13.3 6,141 11.9 50-79 23,068 3.4 17,762 4.1 19,985 4.2 57 3.4 1,561 3.0 80-100 11,533 1.7 13,055 3.0 9,064 1.9 22 1.3 1,326 2.6 Total 672,701 100 438,366 100 478,088 100 1,687 100 51,565 100 Income of census tract3 Low or moderate 51,203 7.6 55,297 12.6 40,902 8.6 158 9.4 5,428 10.5 Middle 373,328 55.5 281,524 64.2 276,563 57.9 1,033 61.2 30,091 58.4 Upper 248,170 36.9 101,545 23.2 160,593 33.6 496 29.4 16,046 31.1 Total 672,701 100 438,366 100 478,058 100 1,687 100 51,565 100 1. Components may not sum to totals because of rounding. MSA as a whole; in middle-income census tracts, median family income is 2. MSA median is the median family income of the metropolitan statisti- 80 percent to 120 percent of the median MSA family income; in uppercal area (MSA) in which the property related to the loan is located. income census tracts, median family income is more than 120 percent of the 3. Low- or moderate-income census tracts are those in which median median MSA family income. family income is less than 80 percent of the median family income of the SOURCE. FFIEC, Home Mortgage Disclosure Act. FNMA and FHLMC follow essentially the same tions (particularly the GSEs) has long been pubguidelines, which they themselves set for the con- licly available, but before 1990 it was mostly of an ventional loans they purchase. For GNMA, under- aggregate nature. The 1989 amendments to HMDA writing standards are established by HUD for FHA- fundamentally expanded the information available insured loans and the VA for VA-guaranteed loans. about secondary market activities by requiring Given that HUD and the VA impose less stringent lenders covered by HMDA to report, for loans loan standards than do originators of conventional originated or purchased during a year, the loans loans, and that they have different rules about the that they sold, classified by the type of secondary maximum size of loans they will back, one can market purchaser. The release of the 1990 HMDA expect that, overall, FHA and VA borrowers will data provided the first opportunity to examine the differ markedly from users of conventional loans. secondary market's patterns of loan purchase and Consequently, borrowers whose loans are securi- securitization by the characteristics of mortgage tized by GNMA are also likely to differ from those borrowers and neighborhoods in which their homes whose loans are sold to or securitized by FNMA or are located. It also allowed comparisons between FHLMC. the activities of the primary market institutions and Considerable information about the purchase and those of the secondary market institutions along securitization activities of secondary market institu- these dimensions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Expanded HMDA Data on Residential Lending: One Year Later 821 7.—Continued Savings bank or Life insurance Affiliate of Borrower or census tract savings and loan association company institution characteristic Number Percent Number Percent Number Percent Number Percent Total loans sold 43,017 14,129 242,197 498,775 Race of borrower American Indian/ Alaskan native 107 .3 40 1.5 636 .3 2,143 .5 Asian/Pacific Islander 888 2.4 688 25.2 5,786 3.1 16,202 3.8 Black 1,502 4.1 387 14.2 6,708 3.6 23,984 5.6 Hispanic 1,020 2.8 235 8.6 4,569 2.4 22,093 5.2 White 32,612 88.1 1,062 38.9 165,652 88.0 347,756 81.8 Other 147 .4 84 3.1 1,248 .7 2,293 .5 Joint (white/minority) 743 2.0 237 8.7 3,614 1.9 10,554 2.5 Total 37,019 100 2,733 100 188,213 100 425,025 100 Income of borrower (percentage of MSA median)2 Less than 80 5,872 19.1 2,472 23.1 25,283 16.4 77,066 22.6 80-99 4,478 14.5 1,532 14.3 18,390 11.9 50,838 14.9 100-120 4,565 14.8 1,400 13.1 19,059 12.4 44,914 13.1 More than 120 15,868 51.5 5,314 49.6 91,296 59.3 168,799 49.4 Total 30,783 100 10,718 100 154,028 100 341,617 100 Racial composition of census tract (minorities as percentage of population) Less than 10 23,798 72.1 7,713 65.8 133,455 68.7 222,913 59.0 10-19 5,017 15.2 2,186 18.6 32,339 16.6 78,143 20.7 20-49 3,012 9.1 1,292 11.0 20,310 10.5 54,136 14.3 50-79 756 2.3 319 2.7 4,946 2.5 13,827 3.7 80-100 413 1.3 211 1.8 3,290 1.7 8,974 2.4 Total 32,9% 100 11,721 100 194,340 100 377,993 100 Income of census tract3 Low or moderate 2,708 8.2 881 7.5 15,841 8.2 37,588 9.9 Middle 19,164 58.1 6,313 53.9 106,098 54.6 206,913 54.7 Upper 11,124 33.7 4,527 38.6 72,401 37.3 133,492 35.3 Total 32,9% 100 11,721 100 194,340 100 377,993 100 The first comprehensive evaluation of the tics of home purchase loans backed by GNMA HMDA data, as it pertains to secondary market guarantees directly reflect that agency's legislated institutions, was completed in May 1992.20 The specialization in government-backed loans. Simipatterns of home loan purchase by the major enti- larly, the characteristics of loans acquired by ties in the secondary market appear, in general, to FNMA and FHLMC derive, for the most part, from mirror loan origination activity in the primary mar- the borrower and geographic composition of conket. In particular, the distribution of loan purchases ventional home-purchase loan originations. arrayed by borrower and neighborhood characteris- For both FNMA and FHLMC, the 1991 HMDA tics among the secondary market agencies reflects data indicate that about 26 percent of the loans they closely the distribution of loan originations by purchase involve borrowers whose income is equal applicant and neighborhood characteristics. More to or less than the median family income of the specifically, the borrower and location characteris- MS As in which they reside.By comparison, about 52 percent of the loans backed by GNMA guarantees were made to this income class. The 20. Results were presented at the Annual Housing Conference sponsored by FNMA in May 1992 and subsequently published. See Glenn B. Canner and Stuart A. Gabriel, "Market Segmentation and 21. The HMDA data do not reflect all the loans purchased or Lender Specialization in the Primary and Secondary Mortgage backed by secondary market entities in a given year—only those Markets," Housing Policy Debate, vol. 3 (September 1992), that were originated or purchased by a covered lender and that were pp. 241-329; and Frank E. Nothaft and Vanessa Perry, "Home sold in the same year. The characteristics of borrowers whose loans Mortgage Disclosure Act Data," Secondary Mortgage Markets, are not included may differ from those reported by institutions vol. 8 (Winter 1991-92), pp. 2-6. covered by HMDA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

822 Federal Reserve Bulletin • November 1992 HMDA data also reveal that, compared with other FNMA and FHLMC have responded to these secondary market purchasers, GNMA guaranteed concerns by continually revising their guidelines relatively more loans to borrowers purchasing and by emphasizing to lenders and others that the homes in low- or moderate-income and middle- rules are not absolute. Over the past five years, the income neighborhoods. agencies have significantly changed the guidelines One objective in the charters of FNMA and to help ensure their flexibility in reflecting the FHLMC is to promote the availability of mortgage special circumstances of lower-income borrowers credit to low- and moderate-income households. and properties in older, urban areas. In the past Recently, both houses of the Congress passed a bill year, for example, guideline changes have dealt that would establish specific goals for this with the treatment of credit history (such as a availability—requiring, for example, that 30 per- record of slow or late payments on debts) and the cent of the dwelling units financed be for families acceptability of certain types of short-term income whose income is at or below the median family (such as seasonal employment and child support income of the area where they reside and that payments) as compensating factors to justify the 30 percent of the dwelling units financed be located use of higher qualifying ratios for debt-to-income. in central city neighborhoods.22 The use of information in appraisal reports has been clarified. For instance, the guidelines now While it is true that the secondary market instituclearly indicate that a loan on property receiving a tions can purchase home loans only from the pool "less than average" rating is not automatically of loans that the primary market originates, the ineligible for sale to the secondary market. underwriting guidelines established by these entities, as well as those used by private mortgage To expand homeownership, property rehabilitainsurance companies, significantly affect the nature tion, and rental opportunities for low- and of the home purchase loans originated. Many mort- moderate-income households, both FNMA and gage lenders closely follow the secondary market FHLMC have undertaken major initiatives conguidelines in their own underwriting so that they cerning affordable housing, often in partnership can subsequently sell the loans they originate. with institutions such as private mortgage insur- FNMA and FHLMC have established guidelines ance companies, state and local governments, and that they believe are prudent for the originating of various groups in the private sector. These initiahome loans. The guidelines deal with factors basic tives involve loan products with special features, to loan credit quality, including the ability of the including low down payments and relaxed qualifyborrower to repay the loan and the soundness of the ing ratios. For instance, FNMA has a "Community property that serves as collateral for the loan. Over Home Buyer's Program" with a 3-2 option, and the years, questions have been raised about the FHLMC has developed customized homeownereffect of the underwriting guidelines on the ability ship initiatives, including an "Affordable Gold Proof loan originators to extend credit to the full range gram." These two programs allow borrowers to of creditworthy borrowers. Some have argued that meet the minimum 5 percent down payment by the guidelines are too rigid. Others believe that providing 3 percent from their personal resources loan originators, perhaps in fear of being forced to and up to 2 percent in the form of a gift from a repurchase loans that go into default, are unduly family member or a grant or unsecured loan from a conservative in applying the guidelines. Questions nonprofit organization or public entity. An imporhave also arisen about the potential for misinterpre- tant component of many of the affordable housing tation of the guidelines by loan originators.23 initiatives are counseling seminars and educational materials on homeownership (such as FNMA's "Guide to Home Ownership") to enhance consumers' understanding of the mortgage loan process 22. Conference report on H.R. 5334, Housing and Community Development Act of 1992, sections 1332 and 1333, Congressional and to apprise them of the housing opportunities Record (daily edition), October 5, 1992, part 5, p. H12019. that are available. 23. In 1990, FHLMC undertook an assessment of these issues by sponsoring focus group interviews with more than 130 mortgage The secondary market institutions have also lenders nationwide. See "The Secondary Market and Community started providing information to primary market Lending through Lenders' Eyes," prepared by ICF, Inc., Fairfax, Virginia (February 28, 1991). institutions about the sociodemographic character- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Expanded HMDA Data on Residential Lending: One Year Later 823 istics of their communities. A FNMA product violation of HMDA is subject to administrative called FannieMaps allows loan originators to use a sanctions, including the imposition of civil money computer-accessible pictorial representation of the penalties where applicable. income and racial characteristics of a designated area, such as the city in which they have offices or groups of selected neighborhoods, on which to Data Quality overlay their lending activity. Such tools help depository institutions to expand their knowledge The banking agencies and HUD seek to ensure that of their local communities and encourage them to the lenders they supervise provide complete and seek business where the need for affordable hous- accurate HMDA information. To facilitate accurate ing may be great and where the institutions may reporting, the FFIEC distributes a booklet to finannot currently be very active. cial institutions entitled "A Guide to HMDA FNMA and FHLMC recently announced that, to Reporting: Getting it Right!" Most supervisory improve their evaluation of their efforts in promot- agencies make available, without charge, computer ing affordable housing, they will ask loan origina- software packages for financial institutions to use tors for more information about loan recipients and in preparing their Loan/Application Register (LAR) the properties they purchase.24 Data to be collected submissions. The agencies also have a program for include the borrower's gender, monthly income, the identification and resolution of errors. This monthly housing expenses, and total debt; the program identifies invalid, as well as possibly corappraisal amount and purchase price of the home; rect but questionable, submissions. Each of the and an indication of whether the borrower is a agencies makes available to the public specific first-time homebuyer. Collection of these data will criteria used in the "data cleaning" process. These allow the agencies not only to measure their criteria are evolving as more experience with the progress in meeting the goals established in the expanded HMDA is gained. For instance, to ensure GSE legislation, but also to understand better the improved quality in the multifamily lending caterelation between indicators of creditworthiness gory, the agencies are working with the Governand those of loan performance. In turn, a better ment Accounting Office to expand the criteria for understanding of the relationship among borrower, these types of loans.25 For 1991, the proportion of property characteristics, and ultimate loan perfor- LAR records of all types containing validity errors mance may indicate ways in which underwriting was 4.4 percent. The error rate varied some among guidelines can be revised to increase lending different types of institutions, with independent opportunities. mortgage companies (the most recently added category of lenders to be covered by HMDA) having the highest rate of error. APPENDIX: DATA QUALITY AND Disclosure statements portraying the 1991 AVAILABILITY HMDA data, like those portraying the 1990 information, are based on the 1980 census tract bound- To maximize the usefulness of the HMDA data, the aries and population characteristics (neighborhood information must be accurate, available to the pub- income level and racial composition). The usefullic in a timely manner, and formatted so that it is ness of these data is consequently somewhat limeasily used and understood. The achievement of ited by the age of the census information. Beginthese objectives requires a substantial commitment ning with lending data collected from January 1992 of resources by the covered institutions and their onward, covered institutions are required to use supervisory agencies. Because of the importance of accurate and timely submissions of HMDA data, a 25. Of the data reported in 1990, the type of lending that appears to have the greatest problems of data quality is the multifamily category. Among the problems identified is the incorrect reporting 24. See FNMA, "Announcement on Reporting Additional Infor- of some loans for one- to four-family properties as multifamily. As mation for Mortgage Deliveries" (July 21, 1992); and FHLMC, in 1990, the most common error in die 1991 HMDA data is the "Revised Home Mortgage Delivery Data Requirements" (July 21, incorrect reporting of census tract numbers for the identification of 1992). the location of properties underlying loans and applications. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

824 Federal Reserve Bulletin • November 1992 1990 census tract boundaries for identifying the nation as a whole is available on data tape and will location of properties underlying their loans. Dis- be made available in early 1993 on PC diskette for closure statements displaying the 1992 HMDA data each MSA separately. will use the 1990 census information. Besides the HMDA data, the FFIEC makes avail- Because the census is conducted only once each able to the public associated data files, including decade, the disclosure statements use estimates for information about annual estimates of median fam- MSA median family income that are updated annu- ily income for each MSA produced by HUD and ally. Estimates calculated by HUD for purposes of sociodemographic information for each census tract program eligibility are now used to categorize produced by the Census Bureau. applicants into one of four income groupings. For The FFIEC also will make available a new series the 1990 disclosure reports, the FFIEC had used of reports drawn from the "HMDA Data Analysis median family income estimates based on changes System" developed by the regulatory agencies to in the Consumer Price Index. enhance their fair-lending and CRA enforcement efforts. Four new Reports will provide information about the lending activity of individual institutions Data Availability in forms different from the standard tables used for The FFIEC makes the HMDA data available in the disclosure statements. For instance, one report various forms and formats. These include disclo- provides information about the number and dollar sure statements for individual institutions and amount of loan applications and their disposition aggregate reports (in paper copy, microfiche, and by census tract; it also displays a variety of sociocomputer tape) for each MSA; a set of tables economic data for each census tract. showing nationwide aggregates; and a series of For information about data availability, contact tables highlighting key information for each MSA. the FFIEC at 2100 Pennsylvania Avenue, N.W., An edited version of the LAR records for the Suite 200, Washington, DC 20037. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

825 Industrial Production and Capacity Utilization Released for publication September 16 extraction, petroleum refining, and petrochemicals. The effects of the hurricane reduced industrial pro- Industrial production declined 0.5 percent in duction a little more than 0.1 percent in August. August, after a revised increase of 0.6 percent in Second, a strike at a key motor vehicle parts plant July. Two notable events affected industrial produc- forced the closing of several assembly plants in late tion in late August. First, Hurricane Andrew, which August and early September; the strike lowered struck the southeastern United States, disrupted auto output about 1 percent in August. Nonetheseveral major industries, particularly oil and gas less, the overall output of motor vehicles still rose Industrial production indexes Twelve-month percent change Twelve-month percent change 1987 1988 1989 1990 1991 1992 1987 1988 1989 1990 1991 1992 Capacity and industrial production Ratio scale, 1987 production = 100 Ratio scale, 1987 production = 100 Percent of capacity Percent of capacity Total industry Manufacturing Utilization 90 Utilization - 90 80 80 70 70 1 1 I I 1 1 1 1 1 I I 1 1 1 1 1 1 1 1 I I I 1980 1982 1984 1986 1988 1990 1992 1980 1982 1984 1986 1988 1990 1992 All series are seasonally adjusted. Latest series, August. Capacity is an index of potential industrial production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

826 Federal Reserve Bulletin • November 1992 Industrial production and capacity utilization Industrial production, index, 1987=100' Percentage change CCCaaattteeegggooorrryyy 11999922 19922 AAuugg.. 11999911 ttoo May' June' July' Aug.P May' June' July' Aug.P AAuugg.. 11999922 Total 108.9 108.5 109.2 108.6 .7 -.4 .6 -.5 .6 Previous estimate 108.9 108.5 108.9 .7 -.4 .4 Major market groups Products, total 109.7 109.1 109.4 109.2 .6 -.5 .3 -.2 .7 Consumer goods 110.8 109.8 110.2 109.7 .6 -.8 .3 -.5 1.2 Business equipment 124.5 124.2 124.5 125.5 1.2 -.3 .3 .8 3.5 Construction supplies 97.8 97.1 97.8 97.6 1.3 -.7 .7 -.2 .9 Materials 107.7 107.5 108.7 107.7 .8 -.1 1.1 -.9 .5 Major industry groups Manufacturing 109.9 109.6 110.0 109.6 .8 -.2 .3 -.3 1.1 Durable 109.1 108.4 109.0 108.9 1.3 -.6 .5 .0 1.0 Nondurable 110.9 111.1 111.2 110.5 .2 .2 .1 -.7 1.3 Mining 99.7 98.0 100.4 99.1 .7 -1.7 2.5 -1.3 -2.3 Utilities 107.3 107.1 109.5 108.2 -.8 -.2 2.2 -1.2 -2.2 Capacity utilization, percent 1991 1992 Average, Low, High, 1967-91 1982 1988-89 Aug. Mayr Juner July' Aug.P Total 82.1 71.8 85.0 79.8 79.1 78.7 79.0 78.5 23 Manufacturing 81.4 70.0 85.1 78.6 78.2 77.8 77.9 77.5 2.5 Advanced processing 81.0 71.4 83.6 77.5 76.8 76.3 76.2 76.1 3.0 Primary processing . 82.3 66.8 89.0 81.2 81.5 81.4 82.3 81.2 1.4 Mining 87.4 80.6 87.2 88.5 86.9 85.4 87.5 86.3 .2 Utilities 86.7 76.2 92.3 85.9 82.7 82.4 84.2 83.1 1.0 1. Seasonally adjusted. r Revised, 2. Change from preceding month to month indicated. p Preliminary. 1 percent in August because increased truck pro- output of business equipment increased nearly duction more than offset a drop in auto output. 1 percent, led by gains in truck output, which Elsewhere, production declined a bit, on balance, boosted the index for transit equipment. In addimainly because of weakness in the output of mate- tion, the production of information-processing rials. At 108.6 percent of its 1987 annual average, equipment, particularly computers, posted another total industrial production in August was 0.6 per- sizable increase in August; however, the output of cent above its year-ago level. Total industrial industrial equipment changed little. The production capacity utilization decreased 0.5 percentage point of construction supplies edged down in August, in August, to 78.5 percent. and the output of materials fell nearly 1 percent, in When analyzed by market group, the data show part because of the disruptions caused by the hurrithat the production of durable consumer goods cane. Output also declined noticeably in paper, increased 0.4 percent in August; the output of textiles, steel, and coal, industries that were not appliances rebounded, while the production of disrupted by the hurricane. autos and trucks for consumer use was little When analyzed by industry group, the data show changed. However, the output of nondurable con- that manufacturing output declined 0.3 percent in sumer goods fell 0.7 percent in August, retracing August, reversing July's gain, and that overall fac- July's increase. The hurricane disrupted the pro- tory utilization declined 0.4 percentage point, to duction of energy for households. The production 77.5 percent, more than 1 percentage point below of clothing and food also declined in August. The the rate of a year earlier. Last month's weakness Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization 827 was widespread among primary-processing indus- bit in August and was 1.4 percentage points below tries; the drop in output was sizable in petroleum the rate of August 1991; of the major industries in refining, paper, textiles, chemicals, lumber, and this category, the operating rates for only nonelecsteel. The utilization rate at primary-processing trical machinery and motor vehicles have shown industries fell more than 1 percentage point in increases over the past twelve months. August, to 81.2 percent, the same level as that of a The production at mines dropped 1.3 percent, year ago. The output of advanced-processing indus- and the production of utilities fell noticeably. tries edged up on balance in August, with increases Within mining, oil and gas extraction declined, and for nonelectrical machinery and motor vehicles and the output of coal retraced some of July's strong declines in food and apparel. The overall utilization rebound from the rail strike. • rate for advanced-processing industries slipped a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

828 Statement to the Congress Statement by John P. LaWare, Member, Board certified or licensed appraisers must be used for of Governors of the Federal Reserve System, all federally related transactions, unless a tempobefore the Subcommittee on General Oversight rary waiver is granted in accordance with the and Investigations of the Committee on Banking, provisions contained in Title XI. Finance and Urban Affairs, U.S. House of Rep- At the outset I should make clear that the resentatives, September 16, 1992 Federal Reserve Board shares the desire of the Congress to ensure that banks establish sound I am pleased to appear before you this morning loan underwriting and administrative proceto discuss the implementation and effectiveness dures. An integral part of such procedures is, of of the real estate appraisal requirements con- course, a prudent and effective appraisal protained in Title XI of the Financial Institutions gram. Indeed, the loss experience of depository Reform, Recovery, and Enforcement Act of institutions in recent years has demonstrated the 1989 (FIRREA). Title XI contemplates a dual critical importance of sound underwriting stanstate and federal role in fulfilling its goal, which, dards in promoting the safety of financial instituas indicated in its statement of purpose, is to tions and in protecting the interests of deposiprovide "that federal financial and public policy tors. interests in real estate-related transactions will The committee's letter of invitation provides be protected by requiring that real estate ap- that this hearing will generally examine the impraisals utilized in connection with federally plementation and effectiveness of Title XI and related transactions are performed in writing, in requests, as well, that the Federal Reserve Board accordance with uniform standards, by individ- address several specific questions. The individuals whose competency has been demonstrated ual questions are addressed in an attachment to and whose professional conduct will be subject this testimony.1 However, because of the interto effective supervision." est that has been expressed on the topic, I will, At the federal level, Title XI required that the later in my statement, address the issue of a federal financial institutions regulatory agencies threshold above which appraisals are required. issue regulations that prescribe appropriate ap- Since the enactment of FIRREA on August 9, praisal standards for those real estate-related 1989, the Federal Reserve Board has been worktransactions that would require the services of a ing extensively with the other federal financial licensed or certified appraiser under the statute institutions regulatory agencies to implement the and, therefore, are federally related. The agen- requirements of Title XI. These efforts fall into cies were also required to distinguish between several categories, as required by Title XI. One those transactions that require the services of a set of initiatives is the establishment of the state-certified appraiser (the senior designation) appraisal subcommittee of the Federal Financial and those that require the services of a state- Institutions Examination Council and our continlicensed appraiser (the junior designation). ued representation on that subcommittee. Re- The states also play a vital role under the garding the activities of the Appraisal Subcomstatute. Title XI contemplates that the states will mittee, I will defer to the statement of the establish appraiser certification and licensing Appraisal Subcommittee Chairman, Fred Finke. agencies, as well as set minimum requirements for individuals who are qualified to perform appraisals in connection with federally related 1. The attachment to this statement is available from Publications Services, Board of Governors of the Federal transactions. After December 31, 1992, state- Reserve System, Washington, DC 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

829 A second area in which each of the agencies regulatory burden and the commensurate costs has expended considerable effort is that of pre- to the public and to depository institutions. scribing appropriate standards for the perfor- During the course of its consideration of its mance of real estate appraisals. In developing the real estate appraisal regulation, the Federal Reregulation, the Board has attempted to comply serve Board remained sensitive to the need for with both the letter and the spirit of Title XI, minimizing potential costs and burdens that the while at the same time remaining sensitive to the regulation could impose while, at the same time, potential costs and burdens that the regulation not jeopardizing safety and soundness considercould impose, particularly on consumers and ations and the purposes of Title XI. In that light, small businesses seeking real estate loans. Title the Board promulgated its final regulation with a XI required that the Federal Reserve Board $100,000 threshold above which appraisals would adopt appraisal standards in its regulation that be required for federally related transactions. incorporated the appraisal standards in the Uni- After considerable comment, the Board subseform Standards of Professional Appraisal Prac- quently issued a proposed rule to reconsider the tice (USPAP). Moreover, the Board was also level of the threshold. Before making a final permitted by Title XI to require compliance with determination on this issue, the Board will readditional standards, if necessary, to properly view the results of the recently completed Office carry out its statutory responsibilities. of Management and Budget study mandated by At the time the Federal Reserve Board sought the Federal Deposit Insurance Corporation Impublic comment on adopting its appraisal regula- provements Act and a pending General Accounttion, the USPAP was in the process of being ing Office study, both related to the appraisal revised, and the Board, as well as the other threshold issue, as well as more than 2,800 financial institutions regulatory agencies, was comment letters received in response to the uncertain whether the substance of the final Board's own proposal. Clearly this issue is conversion would fully satisfy the purposes and the troversial and one in which some members of the requirements of Title XI. As a result, to ensure Congress have expressed considerable interest. that the requirements of Title XI were met, the The Federal Reserve Board initially prescribed Board, along with the other regulatory agencies, the $100,000 threshold because, in its view, adopted its own set of appraisal standards that transactions below the threshold did not appear were substantially similar to those proposed in to implicate the federal financial and public polthe USPAP. icy interests addressed by Title XI, nor did they In June 1990 the Federal Reserve Board pose a significant risk of loss to institutions adopted the appraisal regulation containing the covered under the statute. In the Board's expeadditional appraisal standards of the agencies, rience with its regulated institutions, credit and, at the same time, the USPAP revisions were losses arising from inadequate appraisals of onefinalized. Our experience with appraisals since to four-family residential loans, which constitute the adoption of the revised USPAP standards the vast majority of real estate-related transacappears to indicate that these standards ade- tions falling below the threshold, have not been a quately address the concerns expressed in the significant cause of failures of commercial banklegislative history of FIRREA regarding the suf- ing organizations. Further, the threshold lessens ficiency of appraisal standards. Accordingly, the the potential costs and burdens that the regula- Board and the other regulatory agencies are tion could have on small businesses and individconsidering the deletion of the portion of their uals seeking real estate loans. appraisal regulations containing standards that The Board's supervisory experience also sugare substantially similar to the revised USPAP gests that employees of community banks have standards. Because of reports that some apprais- made reasonable assessments in the past of real ers maintain that the standards specified in the estate collateral values for residential loans. agencies' regulations constitute an additional set Moreover, the majority of all one- to four-family of standards requiring separate analysis, defer- residential loans are originated for potential sale ring more fully to the USPAP should reduce to the secondary mortgage market. In this re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

830 Federal Reserve Bulletin • November 1992 gard, the Board understands that the Federal ing and strengthening appraisal procedures for Housing Administration, the Veterans Adminis- large real estate loans that historically have been tration, the Federal National Mortgage Associa- a major source of problems for some banking tion, and the Federal Home Loan Mortgage institutions. Accordingly, the Federal Reserve Corporation, as well as many private mortgage Board's regulation requires the use of certified insurers, will require appraisals that are per- appraisers for all commercial transactions that formed by licensed or certified appraisers for exceed $250,000 in value. residential loans and insured or guaranteed by In summary, I believe that the approach we them. have adopted in our regulation represents a rea- We are not unconcerned about problems stem- sonable attempt to implement the purposes of ming from relatively small- or medium-size Title XI, while remaining sensitive to the conloans, which, of course, can, and do, result in cerns of smaller institutions, the possible impact some losses to banks. It is for this reason that our on the cost of appraisals, and the potential bursupervisory appraisal and evaluation policies den associated with additional regulation. In decover loans of all sizes. Nevertheless, our expe- veloping the regulation, Board staff members rience with commercial banking organizations have worked closely with representatives of the has suggested that losses on residential loans other bank regulatory agencies to establish a have not contributed significantly to bank fail- consistent approach for commercial banking orures; and, in any case, that significant losses to ganizations. banks on one- to four-family residential loans One purpose of this hearing is to examine the below the $100,000 threshold have not resulted effectiveness of Title XI. As I have already from faulty appraisals. noted, the Board believes that Title XI has Moreover, we believe that the prudential stan- contributed to strengthening appraisal procedards contained in our supervisory appraisal dures within depository institutions. Having said guidelines, together with annual on-site examina- that, I must also caution that the Board believes tions, have helped to mitigate the risks associated that the appraisal process is not an exact science, with transactions below the threshold. Further, nor should it be the sole focus of an examiner's discussions with state agency representatives and review of a commercial real estate loan. Work comments by the public suggest that an employee must still be done to refine the appraisal process of a community bank in a rural area, where it may and to avoid the use of dubious assumptions that be difficult to obtain the experience required by can contribute to exaggerated valuations in both many state licensing authorities, is likely to be at the upside and downside phases of the real estate least as knowledgeable about the value of local cycle. Further, as the agencies indicated in their properties as an out-of-area appraiser. November 7, 1991, guidance to examiners, the In contrast, it has primarily been loans collat- focus of an examiner's review of a commercial eralized by larger commercial buildings, condo- real estate loan must be an assessment of the miniums, shopping centers, and agricultural and borrower's ability to repay the loan in an orderly other commercial properties that have caused and timely manner. The principal factors that major credit losses and, in some cases, failures bear on this assessment are the income-producwithin the commercial banking system. As an ing potential of the underlying collateral and the indication of the loss experience of insured banks borrower's willingness and capacity to repay and savings banks on one- to four-family residen- under the existing loan terms and from the bortial loans, compared with typically larger com- rower's other resources if necessary. mercial real estate loans, I note that for 1991 the As we proceed to implement Title XI, I want to nonperforming loan and loan charge-off ratios for assure you that we will monitor the effectiveness one- to four-family loans were 1.65 percent and and impact of the Board's appraisal regulation. 0.20 percent respectively, compared with 5.81 As is true of any new regulation, we recognize percent and 1.24 percent for commercial real that adjustments may have to be made to accomestate loans. In this regard, the Board believes plish desired objectives. In this regard, the Fedthat Title XI is particularly helpful in standardiz- eral Reserve Board will not hesitate, in coordi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to the Congress 831 nation with the other federal agencies, to strengthen our implementation of Title XI or to consider and, if appropriate, to adopt changes or assure the safety and soundness of our nation's refinements that are deemed necessary to depository institutions. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

832 Announcements MEETING OF CONSUMER ADVISORY eral Reserve under the Primary Dealers Act for the COUNCIL United Kingdom and Japan on August 21, 1989; for Switzerland on December 6, 1989; and for The Federal Reserve Board announced on Septem- Germany on December 12, 1990. ber 23, 1992, that the Consumer Advisory Council The Federal Reserve will continue to monitor held a meeting on October 29. The Council's func- developments in these markets on an ongoing basis tion is to advise the Board on the exercise of the to ensure that the requirements of the Primary Board's responsibilities under the Consumer Credit Dealers Act continue to be met as the markets Protection Act and on other matters on which the change over time. Board seeks its advice. Copies of the report on the French government securities market are available from Publications Services, mail stop 138, Board of Governors of the Federal Reserve System, Washington, DC 20551. DESIGNATION OF PRIMARY DEALER CONTROLLED BY FRENCH FIRM Under the Primary Dealers Act of 1988, the Fed- ISSUANCE OF REGULATION DD eral Reserve may not designate or permit the continuation of the designation as a primary dealer of The Federal Reserve Board issued on Septemany person of a foreign country if that person's ber 14, 1992, its final Regulation DD to carry out home country does not grant to U.S. companies the provisions of the Truth in Savings Act, a part of the same competitive opportunities in the underwriting Federal Deposit Insurance Corporation Improveand distribution of government debt instruments ment Act (FDICIA). issued by such country as such country accords to Regulation DD, which closely follows proviits domestic companies. A "person of a foreign sions of FDICIA, requires depository institutions to country" includes any foreign individual or com- disclose to consumers any fees imposed on deposit pany that directly or indirectly controls a primary accounts, the interest rate paid, the annual percentdealer. Accordingly, in connection with a French age yield, and other terms, before an account is company's recent acquisition of indirect control of opened or on request. a primary dealer in U.S. government securities, the Existing consumer account holders must be noti- Federal Reserve Board and the Federal Reserve fied that such disclosures are available. Bank of New York have determined that U.S. com- The regulation went into effect on September 21, panies are accorded national treatment in their 1992, but compliance is optional until March 21, access to the government securities market of 1993. France. This determination was made after staff Other major provisions of Regulation DD are the members of the Federal Reserve Board and of the following: Federal Reserve Bank of New York conducted a comprehensive study of the characteristics of the • It establishes formulas for computing the an- French government securities market. nual percentage yield to ensure a uniform method The Federal Reserve previously completed com- for institutions to calculate the return on accounts. prehensive studies of the characteristics of four • It requires that if institutions provide a periother government securities markets—in the United odic statement to consumers, they must disclose Kingdom, Japan, Germany, and Switzerland. the fees imposed, the annual percentage yield, and Favorable determinations were made by the Fed- other information. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

833 • It establishes rules for the advertising of of state member banks, bank mergers, bank holding deposit accounts. In this connection, the Board company formations, and the acquisition of a bank deleted similar provisions in its Regulation Q by a bank holding company. The rule is intended to (Interest on Deposits), which retains provisions reduce unnecessary regulatory burden by eliminatprohibiting the payment of interest on demand ing the need for multiple newspaper publications deposits. without significantly reducing the effectiveness of • It restricts how institutions determine the bal- the notice given to the public. The rule became ance on which interest is calculated. Institutions are effective October 13, 1992. required to calculate interest on the full principal balance in the account each day. ISSUANCE OF RULE REGARDING PROMPT The entire Federal Register notice, which in- CORRECTIVE ACTION PROVISIONS cludes supplemental material and addresses ques- OF FDICIA tions raised in the more than 1,400 public comments received by the Board, is available on The Federal Reserve Board issued on Septemrequest from the Board or from one of the twelve ber 18, 1992, a final rule to carry out the "Prompt Federal Reserve Banks. Corrective Action" provisions of the Federal The Board has also established a "hotline" tele- Deposit Insurance Corporation Improvement Act phone hookup to respond to questions concerning of 1991 (section 131). The rule applies to state Truth in Savings and Regulation DD; the number is member banks and goes into effect on Decem- (202) 736-5500. ber 19, 1992. [On September 30, 1992, the Federal Reserve The Board adopted this rule following the receipt Board published corrections to the copy of Regula- of public comment and in consultation with the tion DD (Truth in Savings Act) that was issued on other federal banking agencies. The rules adopted September 14.] by each agency are substantially the same. Section 131 created a legal framework for a system of supervisory actions based primarily on the capital levels of individual institutions. The ISSUANCE OF RULE REGARDING SECTION purpose of the provision is to resolve the problems 23A OF THE FEDERAL RESERVE ACT of insured institutions at the least possible longterm loss to the deposit insurance fund. The Federal Reserve Board announced on Septem- The regulation adopted by the Board accomber 4, 1992, that it had issued a rule to exclude plishes the following: from section 23A of the Federal Reserve Act transactions between affiliated insured depository insti- • Defines capital measures and the capital tutions that are subject to review under the Bank thresholds for each of the five categories estab- Merger Act. The exclusion is intended to reduce lished in the law unnecessary regulatory burden by eliminating the • Establishes a uniform schedule for filing of need for duplicative federal applications. The rule capital restoration plans by undercapitalized institubecame effective September 11, 1992. tions and agency review of those plans • Clarifies aspects of the capital guarantees made as part of an acceptable capital plan by companies REDUCTION IN NEWSPAPER PUBLICATION that control an undercapitalized institution REQUIREMENTS FOR APPLICATIONS • Establishes procedures for providing institutions with advance notice of a proposed supervi- The Federal Reserve Board announced on Septem- sory directive and an opportunity to contest the ber 4,1992, that it had issued a rule to reduce from directive twice to once the newspaper publication require- • Establishes procedures for reclassifying an ments for applications involving membership in the institution to a lower capital category based on Federal Reserve System, establishment of branches supervisory factors other than capital Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

834 Federal Reserve Bulletin • November 1992 • Establishes procedures by which officers and CHANGES IN BOARD STAFF directors who are dismissed as a result of an agency order may obtain review of the dismissal and possi- On October 2, 1992, the Federal Reserve Board ble reinstatement. announced that Bruce J. Summers had returned to the Federal Reserve Bank of Richmond as Senior Vice President after having served as a Deputy ADOPTION OF JOINT AGREEMENT WITH Director in the Division of Reserve Bank Opera- CONFERENCE OF STATE BANK SUPERVISORS tions and Payment Systems for nearly four years. The Board also announced that Ellen Maland The Federal Reserve Board announced on Septem- joined the Office of the Secretary as Visiting Assisber 14, 1992, the adoption of a joint agreement tant Secretary on October 26, 1992. Ms. Maland is with the Conference of State Bank Supervisors that currently Assistant Director in the Division of Conis designed to promote greater efficiency in the sumer and Community Affairs. She is the second supervision of banks. participant in this newly reorganized program and A joint resolution signed by both parties seeks to replaced Mr. Richard C. Stevens, Assistant Direcencourage the negotiation and formation of work- tor, Division of Information Resources Manageing agreements between the Federal Reserve Banks ment, who returned to that division. • and state banking departments that embody the sharing of information and a division of labor in the examination and supervision of state member banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

835 Legal Developments FINAL RULE—PROMPT CORRECTIVE ACTION; the Federal Reserve Act, as amended (12 U.S.C. 321— RULES OF PRACTICE FOR HEARINGS 338, 248(a), 248(c), 461, 481-486, 601, and 611, respectively); sees. 4, 13(j) and 38 of the Federal Deposit The Board of Governors of the Federal Reserve System Insurance Act, as amended (12 U.S.C. 1814, 18230), ("Board of Governors"), the Office of the Comptroller and 1831o, respectively); sec. 7(a) of the International of the Currency ("OCC"), the Federal Deposit Insur- Banking Act of 1978 (12 U.S.C. 3105); sees. 907-910 of ance Corporation ("FDIC"), and the Office of Thrift the International Lending Supervision Act of 1983 Supervision ("OTS") (collectively "the agencies") (12 U.S.C. 3906-3909); sees. 2, 12(b), 12(g), 12(i), have adopted final rules revising their regulations to 15B(c)(5), 17, 17A, and 23 of the Securities Exchange implement for the institutions that they supervise the Act of 1934 (15 U.S.C. 78b, 781(b), 1781(g), 781(i), system of prompt corrective action established by sec- 78o-4(c)(5), 78q, 78q-l, and 78w, respectively); sec. tion 38 of the Federal Deposit Insurance Act (FDI Act) 5155 of the Revised Statutes (12 U.S.C. 36) as amended as added by section 131 of the Federal Deposit Insur- by the McFadden Act of 1927; and sees. 1101-1122 of ance Corporation Improvement Act of 1991 (FDICIA). the Financial Institutions Reform, Recovery, and En- Section 38 requires each Federal banking agency to forcement Act of 1989 (12 U.S.C. 3310 and 3331-3351). implement prompt corrective action for the institutions that it regulates. The agencies have also revised their 2. The undesignated centerheading preceding section rules of practice for hearings to establish procedures for 208.1 is removed, sections 208.1 through 208.19 are the issuance of directives and other actions required designated as subpart A to part 208, and the subpart A under prompt corrective action. heading is added to read as follows: Section 38 requires or permits the agencies to take certain supervisory actions when an insured depository Subpart A—General Provisions institution falls within one of five specifically enumerated capital categories. It also restricts or prohibits 3. Subpart B, comprising sections 208.30 through certain activities and requires the submission of a 208.35, is added to part 208 to read as follows: capital restoration plan when an insured institution becomes undercapitalized. The revisions adopted by Subpart B—Prompt Corrective Action the agencies are necessary to establish the capital levels at which institutions will be deemed to come within the Section 208.30—Authority, purpose, scope, other sufive capital categories. The revisions also establish pervisory authority, and disclosure procedures for issuing and contesting prompt correc- of capital categories. tive action directives including directives requiring the Section 208.31—Definitions. dismissal of directors and senior executive officers. Section 208.32—Notice of capital category. The agencies sought public comment on this pro- Section 208.33—Capital measures and capital cateposal in June 1992. The final rule reflects a number of gory definitions. changes to the original proposal to address concerns Section 208.34—Capital restoration plans. raised by the commenters. Section 208.35—Mandatory and discretionary super- Effective December 19, 1992, 12 C.F.R. Parts 208 visory actions under section 38. and 263 are amended as follows: Subpart B—Prompt Corrective Action Part 208—Membership of State Banking Institutions in the Federal Reserve System Section 208.30—Authority, purpose, scope, other supervisory authority, and disclosure of 1. The authority citation for 12 C.F.R. Part 208 is capital categories. revised to read as follows: (a) Authority. This subpart is issued by the Board of Authority: Sees. 9, 11(a), 11(c), 19, 21, 25 and 25(a) of Governors of the Federal Reserve System (Board) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

836 Federal Reserve Bulletin • November 1992 pursuant to section 38 (section 38) of the Federal (2) Exclusion for fiduciary ownership. No insured Deposit Insurance Act (FDI Act) (12 U.S.C. 1831o) as depository institution or company controls another added by section 131 of the Federal Deposit Insurance insured depository institution or company by virtue Corporation Improvement Act of 1991 (Pub. L. 102— of its ownership or control of shares in a fiduciary 242, 105 Stat. 2236 (1991)). capacity. Shares shall not be deemed to have been (b) Purpose. Section 38 of the FDI Act establishes a acquired in a fiduciary capacity if the acquiring framework of supervisory actions for insured deposi- insured depository institution or company has sole tory institutions that are not adequately capitalized. discretionary authority to exercise voting rights with The principal purpose of this subpart is to define, for respect thereto. state member banks, the capital measures and capital (3) Exclusion for debts previously contracted. No levels that are used for determining the supervisory insured depository institution or company controls actions authorized under section 38 of the FDI Act. This another insured depository institution or company subpart also establishes procedures for submission and by virtue of its ownership or control of shares review of capital restoration plans and for issuance and acquired in securing or collecting a debt previously review of directives and orders pursuant to section 38. contracted in good faith, until two years after the (c) Scope. This subpart implements the provisions of date of acquisition. The two-year period may be section 38 of the FDI Act as they apply to state extended at the discretion of the appropriate Federal member banks. Certain of these provisions also apply banking agency for up to three one-year periods. to officers, directors and employees of state member (b) Controlling person means any person having conbanks. Other provisions apply to any company that trol of an insured depository institution and any comcontrols a state member bank and to the affiliates of a pany controlled by that person. state member bank. (c) Leverage ratio means the ratio of Tier 1 capital to (d) Other supervisory authority. Neither section 38 nor average total consolidated assets, as calculated in this subpart in any way limits the authority of the accordance with the Board's Capital Adequacy Guide- Board under any other provision of law to take super- lines for State Member Banks: Tier 1 Leverage Meavisory actions to address unsafe or unsound practices, sure (Appendix B to Part 208). deficient capital levels, violations of law, unsafe or (d) Management fee means any payment of money or unsound conditions, or other practices. Action under provision of any other thing of value to a company or section 38 of the FDI Act and this subpart may be individual for the provision of management services or taken independently of, in conjunction with, or in advice to the bank or related overhead expenses, addition to any other enforcement action available to including payments related to supervisory, executive, the Board, including issuance of cease and desist managerial, or policymaking functions, other than orders, capital directives, approval or denial of appli- compensation to an individual in the individual's cacations or notices, assessment of civil money penal- pacity as an officer or employee of the bank. ties, or any other actions authorized by law. (e) Risk-weighted assets means total weighted risk (e) Disclosure of capital categories. The assignment of assets, as calculated in accordance with the Board's a bank under this subpart within a particular capital Capital Adequacy Guidelines for State Member category is for purposes of implementing and applying Banks: Risk-Based Measure (Appendix A to Part 208). the provisions of section 38. Unless permitted by the (f) Tangible equity means the amount of core capital Board or otherwise required by law, no bank may state elements in the Board's Capital Adequacy Guidelines in any advertisement or promotional material its cap- for State Member Banks: Risk-Based Measure (Apital category under this subpart or that the Board or pendix A to Part 208), plus the amount of outstanding any other Federal banking agency has assigned the cumulative perpetual preferred stock (including rebank to a particular capital category. lated surplus), minus all intangible assets except purchased mortgage servicing rights to the extent that the Section 208.31—Definitions. Board determines pursuant to section 475 of the Federal Deposit Insurance Corporation Improvement Act For purposes of this subpart, except as modified in this of 1991 (12 U.S.C. 1828 note) that purchased mortgage section or unless the context otherwise requires, the servicing rights may be included in calculating the terms used have the same meanings as set forth in bank's Tier 1 capital. section 38 and section 3 of the FDI Act. (g) Tier 1 capital means the amount of Tier 1 capital as (a)(1) Control has the same meaning assigned to it in defined in the Board's Capital Adequacy Guidelines section 2 of the Bank Holding Company Act for State Member Banks: Risk-Based Measure (Ap- (12 U.S.C. 1841), and the term "controlled" shall pendix A to Part 208). be construed consistently with the term "control." (h) Tier 1 risk-based capital ratio means the ratio of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 837 Tier 1 capital to weighted risk assets, as calculated in Section 208.33—Capital measures and capital accordance with the Board's Capital Adequacy Guide- category definitions. lines for State Member Banks: Risk-Based Measure (Appendix A to Part 208). (i) Total assets means quarterly average total assets as (a) Capital measures. For purposes of section 38 and reported in a bank's Report of Condition and Income this subpart, the relevant capital measures shall be: ("Call Report"), minus intangible assets as provided (1) The total risk-based capital ratio; in the definition of tangible equity, (2) The Tier 1 risk-based capital ratio; and (j) Total risk-based capital ratio means the ratio of (3) The leverage ratio. qualifying total capital to weighted risk assets, as (b) Capital categories. For purposes of section 38 and calculated in accordance with the Board's Capital this subpart, a state member bank shall be deemed to Adequacy Guidelines for State Member Banks: Risk- be: Based Measure (Appendix A to Part 208). (1) "Well capitalized" if the bank: (i) Has a total risk-based capital ratio of 10.0 percent or greater, and Section 208.32—Notice of capital category. (ii) Has a Tier 1 risk-based capital ratio of 6.0 percent or greater, and (a) Effective date of determination of capital category. (iii) Has a leverage ratio of 5.0 percent or greater, A state member bank shall be deemed to be within a and given capital category for purposes of section 38 of the (iv) Is not subject to any written agreement, FDI Act and this subpart as of the date the bank is order, capital directive, or prompt corrective acnotified of, or is deemed to have notice of, its capital tion directive issued by the Board pursuant to category, pursuant to subsection (b). section 8 of the FDI Act, the International Lend- (b) Notice of capital category. A state member bank ing Supervision Act of 1983, or section 38 of the shall be deemed to have been notified of its capital FDI Act, or any regulation thereunder, to meet levels and its capital category as of the most recent and maintain a specific capital level for any capital date: measure; (1) A Report of Condition and Income ("Call Re- (2) "Adequately capitalized" if the bank: port") is required to be filed with the Board; (i) Has a total risk-based capital ratio of 8.0 per- (2) A final report of examination is delivered to the cent or greater, and bank; or (ii) Has a Tier 1 risk-based capital ratio of 4.0 per- (3) Written notice is provided by the Board to the cent or greater, and bank of its capital category for purposes of section (iii) Has— 38 of the FDI Act and this subpart or that the bank's (A) A leverage ratio of 4.0 percent or greater, or capital category has changed as provided in para- (B) A leverage ratio of 3.0 percent or greater if graph (c) of this section or section 208.33(c) of this the bank is rated composite 1 under the part. CAMEL rating system in the most recent ex- (c) Adjustments to reported capital levels and capital amination of the bank and is not experiencing or category. anticipating significant growth; and (1) Notice of adjustment by bank. A state member (iv) Does not meet the definition of a "well capbank shall provide the Board with written notice italized" bank; that an adjustment to the bank's capital category (3) "Undercapitalized" if the bank: may have occurred no later than 15 calendar days (i) Has a total risk-based capital ratio that is less following the date that any material event has oc- than 8.0 percent; or curred that would cause the bank to be placed in a (ii) Has a Tier 1 risk-based capital ratio that is less lower capital category from the category assigned to than 4.0 percent; or the bank for purposes of section 38 and this subpart (iii)(A) Except as provided in clause (B), has a on the basis of the bank's most recent Call Report or leverage ratio that is less than 4.0 percent; or report of examination. (B) Has a leverage ratio that is less than 3.0 (2) Determination by the Board to change capital percent, if the bank is rated composite 1 under category. After receiving notice pursuant to para- the CAMEL rating system in the most recent graph (c)(1) of this section, the Board shall deter- examination of the bank and is not experiencing mine whether to change the capital category of the or anticipating significant growth. bank and shall notify the bank of the Board's (4) "Significantly undercapitalized" if the bank determination. has— Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

838 Federal Reserve Bulletin • November 1992 (i) A total risk-based capital ratio that is less than tion of the institution under section 208.33(c) unless 6.0 percent, or the Board notifies the bank that it must submit a new (ii) A Tier 1 risk-based capital ratio that is less or revised capital plan. A bank that is notified that it than 3.0 percent, or must submit a new or revised capital restoration (iii) A leverage ratio that is less than 3.0 percent. plan shall file the plan in writing with the appropriate (5) "Critically undercapitalized" if the bank has a Reserve Bank within 45 days of receiving such ratio of tangible equity to total assets that is equal to notice, unless the Board notifies the bank in writing or less than 2.0 percent. that the plan is to be filed within a different period. (c) Reclassification based on supervisory criteria other (b) Contents of plan. All financial data submitted in than capital. The Board may reclassify a well capital- connection with a capital restoration plan shall be ized state member bank as adequately capitalized and prepared in accordance with the instructions provided may require an adequately capitalized or an undercap- on the Call Report, unless the Board instructs otheritalized state member bank to comply with certain wise. The capital restoration plan shall include all of mandatory or discretionary supervisory actions as if the information required to be filed under section the bank were in the next lower capital category 38(e)(2) of the FDI Act. A bank that is required to (except that the Board may not reclassify a signifi- submit a capital restoration plan as the result of a cantly undercapitalized bank as critically undercapi- reclassification of the bank pursuant to section talized) (each of these actions are hereinafter referred 208.33(c) shall include a description of the steps the to generally as "reclassifications") in the following bank will take to correct the unsafe or unsound concircumstances: dition or practice. No plan shall be accepted unless it (1) Unsafe or unsound condition. The Board has includes any performance guarantee described in secdetermined, after notice and opportunity for hearing tion 38(e)(2)(C) of that Act by each company that pursuant to section 263.203 of this chapter, that the controls the bank. bank is in unsafe or unsound condition; or (c) Review of capital restoration plans. Within 60 days (2) Unsafe or unsound practice. The Board has after receiving a capital restoration plan under this determined, after notice and opportunity for hearing subpart, the Board shall provide written notice to the pursuant to section 263.203 of this chapter, that, in bank of whether the plan has been approved. The the most recent examination of the bank, the bank Board may extend the time within which notice rereceived and has not corrected, a less-than-satisfac- garding approval of a plan shall be provided. tory rating for any of the categories of asset quality, (d) Disapproval of capital plan. If a capital restoration management, earnings, or liquidity. plan is not approved by the Board, the bank shall submit a revised capital restoration plan within the Section 208.34—Capital restoration plans. time specified by the Board. Upon receiving notice that its capital restoration plan has not been approved, (a) Schedule for filing plan. any undercapitalized state member bank (as defined in (1) In general. A state member bank shall file a section 208.33(b)(3)) shall be subject to all of the written capital restoration plan with the appropriate provisions of section 38 and this subpart applicable to Reserve Bank within 45 days of the date that the significantly undercapitalized institutions. These probank receives notice or is deemed to have notice visions shall be applicable until such time as a new or that the bank is undercapitalized, significantly un- revised capital restoration plan submitted by the bank dercapitalized, or critically undercapitalized, unless has been approved by the Board. the Board notifies the bank in writing that the plan is (e) Failure to submit capital restoration plan. A state to be filed within a different period. An adequately member bank that is undercapitalized (as defined in capitalized bank that has been required pursuant to section 208.33(b)(3)) and that fails to submit a written section 208.33(c) to comply with supervisory actions capital restoration plan within the period provided in as if the bank were undercapitalized is not required this section shall, upon the expiration of that period, to submit a capital restoration plan solely by virtue be subject to all of the provisions of section 38 and this of the reclassification. subpart applicable to significantly undercapitalized (2) Additional capital restoration plans. Notwith- institutions. standing paragraph (a)(1) of this section, a bank that (f) Failure to implement capital restoration plan. Any has already submitted and is operating under a undercapitalized state member bank that fails in any capital restoration plan approved under section 38 material respect to implement a capital restoration and this subpart is not required to submit an addi- plan shall be subject to all of the provisions of section tional capital restoration plan based on a revised 38 and this subpart applicable to significantly undercalculation of its capital measures or a reclassifica- capitalized institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 839 (g) Amendment of capital plan. A bank that has filed subject to the provisions of section 38 and this an approved capital restoration plan may, after prior subpart that are applicable to banks that have not written notice to and approval by the Board, amend submitted an acceptable capital restoration plan. the plan to reflect a change in circumstance. Until such (3) Failure to perform guarantee. Failure by any time as a proposed amendment has been approved, the company that controls a bank to perform fully its bank shall implement the capital restoration plan as guarantee of any capital plan shall constitute a approved prior to the proposed amendment. material failure to implement the plan for purposes (h) Notice to FDIC. Within 45 days of the effective of section 38(f) of the FDI Act. Upon such failure, date of Board approval of a capital restoration plan, or the bank shall be subject to the provisions of section any amendment to a capital restoration plan, the 38 and this subpart that are applicable to banks that Board shall provide a copy of the plan or amendment have failed in a material respect to implement a to the Federal Deposit Insurance Corporation. capital restoration plan. (i) Performance guarantee by companies that control a bank — Section 208.35—Mandatory and discretionary (1) Limitation on liability — (i) Amount limitation. supervisory actions under section 38. The aggregate liability under the guarantee provided under section 38 and this subpart for all (a) Mandatory supervisory actions — (1) Provisions companies that control a specific state member applicable to all banks. All state member banks are bank that is required to submit a capital restora- subject to the restrictions contained in section 38(d) tion plan under this subpart shall be limited to the of the FDI Act on payment of capital distributions lesser of: and management fees. (A) An amount equal to 5.0 percent of the (2) Provisions applicable to undercapitalized, signifbank's total assets at the time the bank was icantly undercapitalized, and critically undercapinotified or deemed to have notice that the bank talized banks. Immediately upon receiving notice or was undercapitalized; or being deemed to have notice, as provided in section (B) The amount necessary to restore the rele- 208.32 or section 208.34 of this subpart, that the vant capital measures of the bank to the levels bank is undercapitalized, significantly undercapitalrequired for the bank to be classified as ade- ized, or critically undercapitalized, the bank shall quately capitalized, as those capital measures become subject to the provisions of section 38 of the and levels are defined at the time that the bank FDI Act: initially fails to comply with a capital restora- (i) Restricting payment of capital distributions and tion plan under this subpart. management fees (section 38(d)); (ii) Limit on duration. The guarantee and limit of (ii) Requiring that the Board monitor the condition liability under section 38 and this subpart shall of the bank (section 38(e)(1)); expire after the Board notifies the bank that it has (iii) Requiring submission of a capital restoration remained adequately capitalized for each of four plan within the schedule established in this subconsecutive calendar quarters. The expiration or part (section 38(e)(2)); fulfillment by a company of a guarantee of a (iv) Restricting the growth of the bank's assets capital restoration plan shall not limit the liability (section 38(e)(3)); and of the company under any guarantee required or (v) Requiring prior approval of certain expansion provided in connection with any capital restora- proposals (section 38(e)(4)). tion plan filed by the same bank after expiration of (3) Additional provisions applicable to significantly the first guarantee. undercapitalized, and critically undercapitalized (iii) Collection on guarantee. Each company that banks. In addition to the provisions of section 38 of controls a given bank shall be jointly and severally the FDI Act described in paragraph (a)(2) of this liable for the guarantee for such bank as required section, immediately upon receiving notice or being under section 38 and this subpart, and the Board deemed to have notice, as provided in section 208.32 may require and collect payment of the full or section 208.34 of this subpart, that the bank is amount of that guarantee from any or all of the significantly undercapitalized, or critically undercompanies issuing the guarantee. capitalized, or that the bank is subject to the provi- (2) Failure to provide guarantee. In the event that a sions applicable to institutions that are significantly bank that is controlled by any company submits a undercapitalized because the bank failed to submit capital restoration plan that does not contain the or implement in any material respect an acceptable guarantee required under section 38(e)(2) of the FDI capital restoration plan, the bank shall become Act, the bank shall, upon submission of the plan, be subject to the provisions of section 38 of the FDI Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

840 Federal Reserve Bulletin • November 1992 Act that restrict compensation paid to senior exec- Section 263.50—Purpose and scope. utive officers of the institution (section 38(f)(4)). (4) Additional provisions applicable to critically undercapitalized banks. In addition to the provi- (b) * * * sions of section 38 of the FDI Act described in (11) Issuance of a prompt corrective action directive paragraphs (a)(2) and (3) of this section, immediately to a member bank under section 38 of the FDI Act upon receiving notice or being deemed to have (12 U.S.C. 1831o); notice, as provided in section 208.32 of this subpart, (12) Reclassification of a member bank on grounds that the bank is critically undercapitalized, the bank of unsafe or unsound condition under section shall become subject to the provisions of section 38 38(g)(1) of the FDI Act (12 U.S.C. 1831o(g)(l)); of the FDI Act: (13) Reclassification of a member bank on grounds (i) Restricting the activities of the bank (section of unsafe and unsound practice under section 38(h)(1)); and 38(g)(1) of the FDI Act (12 U.S.C. 1831o(g)(l)); and (ii) Restricting payments on subordinated debt of (14) Issuance of an order requiring a member bank the bank (section 38(h)(2)). to dismiss a director or senior executive officer (b) Discretionary supervisory actions. In taking any under section 38(e)(5) and 38(f)(2)(F)(ii) of the FDI action under section 38 that is within the Board's Act (12 U.S.C. 1831o(e)(5) and 1831o(f)(2)(F)(ii)). discretion to take in connection with: (1) A state member bank that is deemed to be 3. A new subpart H is added to part 263 to read as undercapitalized, significantly undercapitalized, or follows: critically undercapitalized, or has been reclassified as undercapitalized, or significantly undercapital- Subpart H—Issuance and Review of Orders ized; Pursuant to Prompt Corrective Action (2) An officer or director of such bank; or Provisions of the Federal Deposit Insurance (3) A company that controls such bank, the Board Act shall follow the procedures for issuing directives under section 263.202 and 263.204 of this chapter, Section 263.201—Scope. unless otherwise provided in section 38 or this Section 263.202—Directives to take prompt corrective subpart. action. Section 263.203—Procedures for reclassifying state 4. Subparts C and D are added to part 208 and member bank based on criteria reserved, the undesignated centerhead preceding sec- other than capital. tion 208.116 is removed, sections 208.116, 208.117, Section 263.204—Order to dismiss director or senior 208.122, and 208.124 through 208.128 are designated as executive officer. subpart E of part 208, and the subpart E heading is Section 263.205—Enforcement of directives. added to read as follows: Subpart H—Issuance and Review of Orders Pursuant to Prompt Corrective Action Subpart E—Interpretations Provisions of the Federal Deposit Insurance Act Part 263—Rules of Practice for Hearings Section 263.201—Scope. 1. The authority citation for 12 C.F.R. Part 263 is revised to read as follows: (a) The rules and procedures set forth in this subpart apply to state member banks, companies that control Authority: 5 U.S.C. 504; 12 U.S.C. 248, 324, 504, 505, state member banks or are affiliated with such banks, 1817(j), 1818, 1828(c), 1831o, 1847(b), 1847(d), 1884(b), and senior executive officers and directors of state 1972(2)(F), 3105, 3107, 3108, 3907, 3909; 15 U.S.C. 21, member banks that are subject to the provisions of 78o-4, 78o-5, and 78u-2. section 38 of the Federal Deposit Insurance Act ("section 38") and subpart B of section 208 of this chapter. 2. Section 263.50(b) is amended by removing the word "and" at the end of paragraph (b)(9), removing the Section 263.202—Directives to take prompt period at the end of paragraph (b)(10) and adding in its regulatory action. place a semicolon, and by adding paragraphs (b)(ll) through (b)(14) to read as follows: (a) Notice of intent to issue directive. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 841 (1) In general. The Board shall provide an under- (2) Content of response. The response should incapitalized, significantly undercapitalized, or criti- clude: cally undercapitalized state member bank or, where (i) An explanation why the action proposed by the appropriate, any company that controls the bank, Board is not an appropriate exercise of discretion prior written notice of the Board's intention to issue under section 38; a directive requiring such bank or company to take (ii) Any recommended modification of the proactions or to follow proscriptions described in sec- posed directive; and tion 38 that are within the Board's discretion to (iii) Any other relevant information, mitigating require or impose under section 38 of the FDI Act, circumstances, documentation, or other evidence including sections 38(e)(5), (f)(2), (f)(3), or (f)(5). in support of the position of the bank or company The bank shall have such time to respond to a regarding the proposed directive. proposed directive as provided by the Board under (d) Board consideration of response. After considering paragraph (c) of this section. the response, the Board may: (2) Immediate issuance of final directive. If the Board (1) Issue the directive as proposed or in modified finds it necessary in order to carry out the purposes form; of section 38 of the FDI Act, the Board may, without (2) Determine not to issue the directive and so notify providing the notice prescribed in paragraph (a)(1) of the bank or company; or this section, issue a directive requiring a state mem- (3) Seek additional information or clarification of the ber bank or any company that controls a state mem- response from the bank or company, or any other ber bank immediately to take actions or to follow relevant source. proscriptions described in section 38 that are within (e) Failure to file response. Failure by a bank or the Board's discretion to require or impose under company to file with the Board, within the specified section 38 of the FDI Act, including section 38(e)(5), time period, a written response to a proposed directive (f)(2), (f)(3), or (f)(5). A bank or company that is shall constitute a waiver of the opportunity to respond subject to such an immediately effective directive and shall constitute consent to the issuance of the may submit a written appeal of the directive to the directive. Board. Such an appeal must be received by the (f) Request for modification or rescission of directive. Board within 14 calendar days of the issuance of the Any bank or company that is subject to a directive directive, unless the Board permits a longer period. under this subpart may, upon a change in circum- The Board shall consider any such appeal, if filed in stances, request in writing that the Board reconsider a timely manner, within 60 days of receiving the the terms of the directive, and may propose that the appeal. During such period of review, the directive directive be rescinded or modified. Unless otherwise shall remain in effect unless the Board, in its sole ordered by the Board, the directive shall continue in discretion, stays the effectiveness of the directive. place while such request is pending before the Board. (b) Contents of notice. A notice of intention to issue a directive shall include: Section 263.203—Procedures for reclassifying a (1) A statement of the bank's capital measures and state member bank based on criteria other than capital levels; capital. (2) A description of the restrictions, prohibitions, or affirmative actions that the Board proposes to impose or require; (a) Reclassification based on unsafe or unsound con- (3) The proposed date when such restrictions or dition or practice — prohibitions would be effective or the proposed date (1) Issuance of notice of proposed reclassification. for completion of such affirmative actions; and (i) Grounds for reclassification. Pursuant to sec- (4) The date by which the bank or company subject tion 208.33(c) of Regulation H, 12 C.F.R. to the directive may file with the Board a written 208.33(c), the Board may reclassify a well capitalresponse to the notice. ized bank as adequately capitalized or subject an (c) Response to notice — (1) Time for response. A adequately capitalized or undercapitalized institubank or company may file a written response to a tion to the supervisory actions applicable to the notice of intent to issue a directive within the time next lower capital category if: period set by the Board. The date shall be at least 14 (A) The Board determines that the bank is in calendar days from the date of the notice unless the unsafe or unsound condition; or Board determines that a shorter period is appropri- (B) The Board deems the bank to be engaged in ate in light of the financial condition of the bank or an unsafe or unsound practice and not to have other relevant circumstances. corrected the deficiency. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

842 Federal Reserve Bulletin • November 1992 Any action pursuant to this paragraph shall here- timely written request that includes a request for a inafter be referred to as "reclassification." hearing, the Board shall issue an order directing an (ii) Prior notice to institution. Prior to taking informal hearing to commence no later than 30 days action pursuant to section 208.33(c) of this part, after receipt of the request, unless the bank requests the Board shall issue and serve on the bank a a later date. The hearing shall be held in Washingwritten notice of the Board's intention to reclas- ton, D.C. or at such other place as may be desigsify the bank. nated by the Board, before a presiding officer(s) (2) Contents of notice. A notice of intention to designated by the Board to conduct the hearing. reclassify a bank based on unsafe or unsound con- (7) Hearing procedures — (i) The bank shall have dition shall include: the right to introduce relevant written materials (i) A statement of the bank's capital measures and and to present oral argument at the hearing. The capital levels and the category to which the bank bank may introduce oral testimony and present would be reclassified; witnesses only if expressly authorized by the (ii) The reasons for reclassification of the bank; Board or the presiding officer(s). Neither the (iii) The date by which the bank subject to the provisions of the Administrative Procedure Act notice of reclassification may file with the Board a governing adjudications required by statute to be written appeal of the proposed reclassification and determined on the record nor the Uniform Rules a request for a hearing, which shall be at least 14 of Practice and Procedure in subpart A of this part calendar days from the date of service of the apply to an informal hearing under this section notice unless the Board determines that a shorter unless the Board orders that such procedures period is appropriate in light of the financial shall apply. condition of the bank or other relevant circum- (ii) The informal hearing shall be recorded, and a stances. transcript shall be furnished to the bank upon (3) Response to notice of proposed reclassification. request and payment of the cost thereof. Wit- A bank may file a written response to a notice of nesses need not be sworn, unless specifically proposed reclassification within the time period set requested by a party or the presiding officer(s). by the Board. The response should include: The presiding officer(s) may ask questions of any (i) An explanation of why the bank is not in unsafe witness. or unsound condition or otherwise should not be (iii) The presiding officer(s) may order that the reclassified; hearing be continued for a reasonable period (ii) Any other relevant information, mitigating (normally five business days) following complecircumstances, documentation, or other evidence tion of oral testimony or argument to allow addiin support of the position of the bank or company tional written submissions to the hearing record. regarding the reclassification. (8) Recommendation of presiding officers. Within 20 (4) Failure to file response. Failure by a bank to file, calendar days following the date the hearing and the within the specified time period, a written response record on the proceeding are closed, the presiding with the Board to a notice of proposed reclassifica- officer(s) shall make a recommendation to the Board tion shall constitute a waiver of the opportunity to on the reclassification. respond and shall constitute consent to the reclassi- (9) Time for decision. Not later than 60 calendar fication. days after the date the record is closed or the date of (5) Request for hearing and presentation of oral the response in a case where no hearing was retestimony or witnesses. The response may include a quested, the Board will decide whether to reclassify request for an informal hearing before the Board or the bank and notify the bank of the Board's deciits designee under this section. If the bank desires to sion. present oral testimony or witnesses at the hearing, (b) Request for rescission of reclassification. Any the bank shall include a request to do so with the bank that has been reclassified under this section, request for an informal hearing. A request to present may, upon a change in circumstances, request in oral testimony or witnesses shall specify the names writing that the Board reconsider the reclassification, of the witnesses and the general nature of their and may propose that the reclassification be rescinded expected testimony. Failure to request a hearing and that any directives issued in connection with the shall constitute a waiver of any right to a hearing, reclassification be modified, rescinded, or removed. and failure to request the opportunity to present oral Unless otherwise ordered by the Board, the bank shall testimony or witnesses shall constitute a waiver of remain subject to the reclassification and to any direcany right to present oral testimony or witnesses. tives issued in connection with that reclassification (6) Order for informal hearing. Upon receipt of a while such request is pending before the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 843 Section 263.204—Order to dismiss a director or Board or the presiding officer(s). Neither the provisenior executive officer. sions of the Administrative Procedure Act governing adjudications required by statute to be determined on (a) Service of notice. When the Board issues and the record nor the Uniform Rules of Practice and serves a directive on a state member bank pursuant to Procedure in subpart A of this part apply to an section 263.202 requiring the bank to dismiss from informal hearing under this section unless the Board office any director or senior executive officer under orders that such procedures shall apply. section 38(f)(2)(F)(ii) of the FDI Act, the Board shall (2) The informal hearing shall be recorded, and a also serve a copy of the directive, or the relevant transcript shall be furnished to the Respondent upon portions of the directive where appropriate, upon the request and payment of the cost thereof. Witnesses person to be dismissed. need not be sworn, unless specifically requested by (b) Response to directive — (1) Request for reinstate- a party or the presiding officer(s). The presiding ment. A director or senior executive officer who has officer(s) may ask questions of any witness. been served with a directive under subsection (a) (3) The presiding officer(s) may order that the hear- (Respondent) may file a written request for reinstate- ing be continued for a reasonable period (normally ment. The request for reinstatement shall be filed five business days) following completion of oral within 10 calendar days of the receipt of the directive testimony or argument to allow additional written by the Respondent, unless further time is allowed by submissions to the hearing record. the Board at the request of the Respondent. (e) Standard for review. A Respondent shall bear the (2) Contents of request; informal hearing. The re- burden of demonstrating that his or her continued quest for reinstatement shall include reasons why employment by or service with the bank would matethe Respondent should be reinstated, and may in- rially strengthen the bank's ability: clude a request for an informal hearing before the (1) To become adequately capitalized, to the extent Board or its designee under this section. If the that the directive was issued as a result of the bank's Respondent desires to present oral testimony or capital level or failure to submit or implement a witnesses at the hearing, the Respondent shall in- capital restoration plan; and clude a request to do so with the request for an (2) To correct the unsafe or unsound condition or informal hearing. The request to present oral testi- unsafe or unsound practice, to the extent that the mony or witnesses shall specify the names of the directive was issued as a result of classification of witnesses and the general nature of their expected the bank based on supervisory criteria other than testimony. Failure to request a hearing shall consti- capital, pursuant to section 38(g) of the FDI Act. tute a waiver of any right to a hearing and failure to (f) Recommendation of presiding officers. Within 20 request the opportunity to present oral testimony or calendar days following the date the hearing and the witnesses shall constitute a waiver of any right or record on the proceeding are closed, the presiding opportunity to present oral testimony or witnesses. officer(s) shall make a recommendation to the Board (3) Effective date. Unless otherwise ordered by the concerning the Respondent's request for reinstate- Board, the dismissal shall remain in effect while a ment with the bank. request for reinstatement is pending. (g) Time for decision. Not later than 60 calendar days (c) Order for informal hearing. Upon receipt of a after the date the record is closed or the date of the timely written request from a Respondent for an response in a case where no hearing was requested, informal hearing on the portion of a directive requiring the Board shall grant or deny the request for reinstatea bank to dismiss from office any director or senior ment and notify the Respondent of the Board's deciexecutive officer, the Board shall issue an order direct- sion. If the Board denies the request for reinstatement, ing an informal hearing to commence no later than 30 the Board shall set forth in the notification the reasons days after receipt of the request, unless the Respon- for the Board's action. dent requests a later date. The hearing shall be held in Washington, D.C., or at such other place as may be Section 263.205—Enforcement of directives. designated by the Board, before a presiding officer(s) designated by the Board to conduct the hearing. (d) Hearing procedures — (1) A Respondent may (a) Judicial remedies. Whenever a state member bank appear at the hearing personally or through counsel. or company that controls a state member bank fails to A Respondent shall have the right to introduce rele- comply with a directive issued under section 38, the vant written materials and to present oral argument. Board may seek enforcement of the directive in the A Respondent may introduce oral testimony and appropriate United States district court pursuant to present witnesses only if expressly authorized by the section 8(i)(l) of the FDI Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

844 Federal Reserve Bulletin • November 1992 (b) Administrative remedies — Section 217.1—Authority, purpose, and scope. (1) Failure to comply with directive. Pursuant to section 8(i)(2)(A) of the FDI Act, the Board may (a) Authority. This part is issued under the authority of assess a civil money penalty against any state memsection 19 of the Federal Reserve Act (12 U.S.C. 371a, ber bank or company that controls a state member 461, 505), section 7 of the International Banking Act of bank that violates or otherwise fails to comply with 1978 (12 U.S.C. 3105), section 11 of the Federal Reany final directive issued under section 38 and serve Act (12 U.S.C. 248), and section 8 of the Federal against any institution-affiliated party who partici- Deposit Insurance Act (12 U.S.C. 1818), unless otherpates in such violation or noncompliance. wise noted. (2) Failure to implement capital restoration plan. (b) Purpose. This part prohibits the payment of inter- The failure of a bank to implement a capital restoraest on demand deposits by member banks and other tion plan required under section 38, subpart B of depository institutions within the scope of this part. Regulation H, 12 C.F.R. part 208, or this subpart, or the failure of a company having control of a bank to * * * ** fulfill a guarantee of a capital restoration plan made 4. Sections 217.4, 217.6, 217.201, 217.301, 217.601, pursuant to section 38(e)(2) of the FDI Act shall 217.602, and 217.603 are removed. subject the bank or company to the assessment of civil money penalties pursuant to section 8(i)(2)(A) of 5. Section 217.302 is redesignated as section 217.101. the FDI Act. (c) Other enforcement action. In addition to the actions described in paragraphs (a) and (b) of this section, the Board may seek enforcement of the provi- FINAL RULE—AMENDMENT TO REGULATION Y sions of section 38 or subpart B of Regulation H through any other judicial or administrative proceed- The Board of Governors is amending 12 C.F.R. Parts ing authorized by law. 225 and 262, its Regulation Y (Bank Holding Companies and Change in Bank Control) and its Rules of Procedure ("Rules"). The Board has revised the pro- FINAL RULE—AMENDMENT TO visions of its Rules and its Regulation Y. Section REGULATION Q 262.3(b) of the Rules requires applicants to publish two newspaper notices of applications filed with the Fed- The Board of Governors is amending 12 C.F.R. Part eral Reserve under section 9 of the Federal Reserve 217, its Regulation Q (Prohibition Against the Payment Act (for membership or to establish branches), the of Interest on Demand Deposits) in conjunction with its Bank Merger Act (if a state member bank is involved), adoption of Regulation DD, which implements the and the Bank Holding Company Act (BHC Act) (to Truth in Savings Act. Since Regulation DD provides for form a bank holding company or for a bank holding rules relating to advertisements and other disclosures company to acquire a bank). These revisions would for deposit accounts, similar provisions in Regulation Q reduce from twice to once the number of times notice are deleted. Regulation Q retains provisions prohibiting of an application must be published in a newspaper. the payment of interest on demand deposits. The amendments would have no effect on public Effective March 21, 1992, 12 C.F.R. Part 217 is comment periods, which currently start when the first amended as follows: notice is published. Alternative sources of notice will continue to be available, such as the weekly list of Part 217—Prohibition Against the Payment of pending applications prepared by the Board and the Interest on Demand Deposits Reserve Banks and, in the case of Bank Holding Company Act applications, notices published in the 1. The authority citation for part 217 is revised to read Federal Register. as follows: Effective October 13, 1992, 12 C.F.R. Parts 225 and 262 are amended as follows: Authority: 12 U.S.C. 248, 371a, 461, 505, 1818, and 3105. Part 225—Bank Holding Companies and 2. Part 217 is revised to read as set forth above: Change in Bank Control 3. In section 217.1, paragraphs (a) and (b) are revised 1. The authority citation for part 225 would continue to to read as follows: read as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 845 Authority: 12 U.S.C. 1817(j)(13), 1818, 1831(i), give written comment on the application to the 1843(c)(8), 1844(b), 3106, 3108, 3907, 3909, 3310, and appropriate Federal Reserve Bank for at least 3331-3351, and sec. 306 of the Federal Deposit Insur- thirty days after the date of publication. Within 7 ance Corporation Improvement Act of 1991 (Pub. L. days of publication, the applicant shall submit its 102-242, 105 Stat. 2236 (1991)). application to the appropriate Reserve Bank for acceptance along with a copy of the notice. If the Subpart B—Acquisition of Bank Securities or Reserve Bank has not accepted the application as Assets complete within ninety days of the date of publication of the notice, the applicant may be required 2. Section 225.14 is amended by adding a new para- to republish notice of the application. graph (b)(3) to read as follows: Section 225.14—Procedures for applications, notices, and hearings. Section 262.3—[Amended]. 3. In section 262.3, paragraph (b)(2) is amended by (b) * * * removing the word "first" in the second sentence. (3) Newspaper notice. The applicant shall cause to Section 262.25—[Amended]. be published in a newspaper of general circulation in the affected community, in the form prescribed by 4. In section 262.25, paragraph (a)(1) is amended by the Board in 12 C.F.R. 262.3(b), at least one notice removing the word "first" in the first sentence. soliciting public comment on the proposed acquisition. FINAL RULE—ADOPTION OF REGULATION DD Part 262—Rules of Procedure The Board of Governors is adopting a new regulation, Regulation DD, to implement the Truth in Savings 1. The authority citation for part 262 would continue to Act. The act and regulation require depository instituread as follows: tions to disclose fees, interest rates and other terms concerning deposit accounts to consumers before they Authority: 5 U.S.C. 552. open accounts. The act requires depository institutions that provide periodic statements to consumers to 2. Section 262.3 is amended by redesignating para- include information about fees imposed, interest graphs (b)(1) introductory text, (b)(l)(i) through (vi), earned and the annual percentage yield earned on and the flush text beginning "the applicant" and those statements. The act and regulation impose subending with "the Board" as paragraphs (b)(l)(i) intro- stantive limitations on the methods by which instituductory text, (bXDOXA) through (F), and (b)(l)(i) tions determine the balance on which interest is calconcluding text, respectively; by removing the words culated. Rules dealing with advertisements for deposit "on the same day of each of two consecutive weeks" accounts are also included in the new regulation. from the newly designated paragraph (b)(l)(i) conclud- Effective September 21, 1992, but compliance is ing text; by designating the text, following newly optional until March 21, 1993, 12 C.F.R. Part 230 is designated paragraph (b)(l)(i) concluding text, which added as follows: begins with the words "The notice shall be placed in the classified" as paragraph (b)(l)(ii); and by revising Part 230—Truth in Savings (Regulation DD) the first, second and third sentences of r^wly designated paragraph (b)(l)(ii) to read as follows: Section 230.1—Authority, purpose, coverage, and effect on state laws. Section 262.3—Applications. Section 230.2—Definitions. Section 230.3—General disclosure requirements. Section 230.4—Account disclosures. (b) * * * (l)2(i) * * * Section 230.5—Subsequent disclosures. (ii) The notice shall be placed in the classified Section 230.6—Periodic statement disclosures. advertising legal notices section of the newspaper, Section 230.7—Payment of interest. and must provide an opportunity for the public to Section 230.8—Advertising. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

846 Federal Reserve Bulletin • November 1992 Section 230.9—Enforcement and record retention. that is held by or on behalf of a deposit broker, if any Appendix A to Part 230—Annual Percentage Yield interest in the account is held by or offered to a Calculation consumer. The term does not include an existing Appendix B to Part 230—Model Clauses and Sample account held by an unincorporated nonbusiness asso- Forms ciation of natural persons prior to March 21, 1993, Appendix C to Part 230—Effect on State Laws unless the association notifies the institution that it Appendix D to Part 230—Issuance of Staff Interpre- meets the definition of "consumer." tations (b) Advertisement means a commercial message, appearing in any medium, that promotes directly or indi- Authority: 12 U.S.C. 4301 et seq. rectly the availability of, or a deposit in, an account. (c) Annual percentage yield means a percentage rate Section 230.1—Authority, purpose, coverage, reflecting the total amount of interest paid on an and effect on state laws. account, based on the interest rate and the frequency of compounding for a 365-day period and calculated (a) Authority. This regulation, known as Regula- according to the rules in Appendix A of this part. tion DD, is issued by the Board of Governors of the (d) Average daily balance method means the applica- Federal Reserve System to implement the Truth in tion of a periodic rate to the average daily balance in Savings Act of 1991 (the act), contained in the Federal the account for the period. The average daily balance Deposit Insurance Corporation Improvement Act of is determined by adding the full amount of principal in 1991 (12 U.S.C. 4301 et seq., Pub. L. 102-242, 105 the account for each day of the period and dividing Stat. 2236). Information collection requirements con- that figure by the number of days in the period. tained in this regulation have been approved by the (e) Board means the Board of Governors of the Fed- Office of Management and Budget under the provi- eral Reserve System. sions of 44 U.S.C. 3501 et seq. and have been assigned (f) Bonus means a premium, gift, award, or other OMB No. 7100-0255. consideration worth more than $10 (whether in the (b) Purpose. The purpose of this regulation is to enable form of cash, credit, merchandise, or any equivalent) consumers to make informed decisions about accounts given or offered to a consumer during a year in at depository institutions. The regulation requires de- exchange for opening, maintaining, renewing, or inpository institutions to provide disclosures so that creasing an account balance. The term does not inconsumers can make meaningful comparisons among clude interest, other consideration worth $10 or less depository institutions. given during a year, the waiver or reduction of a fee, or (c) Coverage. This regulation applies to depository the absorption of expenses. institutions except for credit unions. In addition, the (g) Business day means a calendar day other than a advertising rules in section 230.8 of this part apply to Saturday, a Sunday, or any of the legal public holidays any person who advertises an account offered by a specified in 5 U.S.C. 6103(a). depository institution, including deposit brokers. (h) Consumer means a natural person who holds an (d) Effect on state laws. State law requirements that account primarily for personal, family, or household are inconsistent with the requirements of the act and purposes, or to whom such an account is offered. The this regulation are preempted to the extent of the term also includes an unincorporated nonbusiness inconsistency. Additional information on inconsistent association of natural persons. The term does not state laws and the procedures for requesting a preemp- include a natural person who holds an account for tion determination from the Board are set forth in another in a professional capacity. Appendix C of this part. (i) Daily balance method means the application of a daily periodic rate to the full amount of principal in the Section 230.2—Definitions. account each day. (j) Depository institution and institution mean an insti- For purposes of this regulation, the following defini- tution defined in section 19(b)(l)(A)(i)-(vi) of the Fedtions apply: eral Reserve Act (12 U.S.C. 461), except credit unions defined in section 19(b)(l)(A)(iv). (a) Account means a deposit account at a depository (k) Deposit broker means any person who is a deposit institution that is held by or offered to a consumer. It broker as defined in section 29(g) of the Federal includes time, demand, savings, and negotiable order Deposit Insurance Act (12 U.S.C. 1831f(g)). of withdrawal accounts. For purposes of the advertis- (1) Fixed-rate account means an account for which the ing requirements in section 230.8 of this part, the term institution contracts to give at least 30 calendar days also includes an account at a depository institution advance written notice of decreases in the interest rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 847 (m) Grace period means a period following the matu- writing and in a form the consumer may keep. Disclority of an automatically renewing time account during sures for each account offered by an institution may be which the consumer may withdraw funds without presented separately or combined with disclosures for being assessed a penalty. the institution's other accounts, as long as it is clear (n) Interest means any payment to a consumer or to an which disclosures are applicable to the consumer's account for the use of funds in an account, calculated account. by application of a periodic rate to the balance. The (b) General. The disclosures shall reflect the terms of term does not include the payment of a bonus or other the legal obligation of the account agreement between consideration worth $10 or less given during a year, the the consumer and the depository institution. Disclowaiver or reduction of a fee, or the absorption of sures may be made in languages other than English, expenses. provided the disclosures are available in English upon (o) Interest rate means the annual rate of interest paid request. on an account which does not reflect compounding. (c) Relation to Regulation E. Disclosures required by For the purposes of the account disclosures in section and provided in accordance with the Electronic Fund 230.4(b)(l)(i) of this part, the interest rate may, but Transfer Act (15 U.S.C. 1601) and its implementing need not, be referred to as the "annual percentage Regulation E (12 C.F.R. 205) that are also required by rate" in addition to being referred to as the "interest this regulation may be substituted for the disclosures rate." required by this regulation. (p) Passbook savings account means a savings ac- (d) Multiple consumers. If an account is held by more count in which the consumer retains a book or other than one consumer, disclosures may be made to any document in which the institution records transactions one of the consumers. on the account. (e) Oral response to inquiries. In an oral response to a (q) Periodic statement means a statement setting forth consumer's inquiry about interest rates payable on its information about an account (other than a time ac- accounts, the depository institution shall state the count or passbook savings account) that is provided to annual percentage yield. The interest rate may be a consumer on a regular basis four or more times a stated in addition to the annual percentage yield. No year. other rate may be stated. (r) State means a state, the District of Columbia, the (f) Rounding and accuracy rules for rates and yields— Commonwealth of Puerto Rico, and any territory or (1) Rounding. The annual percentage yield, the possession of the United States, annual percentage yield earned, and the interest rate (s) Stepped-rate account means an account that has shall be rounded to the nearest one-hundredth of two or more interest rates that take effect in succeed- one percentage point (.01%) and expressed to two ing periods and are known when the account is decimal places. For account disclosures, the interest opened. rate may be expressed to more than two decimal (t) Tiered-rate account means an account that has two places. or more interest rates that are applicable to specified (2) Accuracy. The annual percentage yield (and the balance levels. annual percentage yield earned) will be considered (u) Time account means an account with a maturity of accurate if not more that one-twentieth of one at least seven days in which the consumer generally percentage point (.05%) above or below the annual does not have a right to make withdrawals for six days percentage yield (and the annual percentage yield after the account is opened, unless the deposit is earned) determined in accordance with the rules in subject to an early withdrawal penalty of at least seven Appendix A of this part. days' interest on amounts withdrawn, (v) Variable-rate account means an account in which Section 230.4—Account disclosures. the interest rate may change after the account is opened, unless the institution contracts to give at least (a) Delivery of account disclosures — (1) Account 30 calendar days advance written notice of rate de- opening. A depository institution shall provide accreases. count disclosures to a consumer before an account is opened or a service is provided, whichever is Section 230.3—General disclosure earlier. An institution is deemed to have provided a requirements. service when a fee required to be disclosed is assessed. If the consumer is not present at the (a) Form. Depository institutions shall make the dis- institution when the account is opened or the service closures required by sections 230.4 through 230.6 of is provided and has not already received the disclothis part, as applicable, clearly and conspicuously in sures, the institution shall mail or deliver the disclo- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

848 Federal Reserve Bulletin • November 1992 sures no later than 10 business days after the ac- (iii) When interest begins to accrue. A statement count is opened or the service is provided, of when interest begins to accrue on noncash whichever is earlier. deposits. (2) Requests. (4) Fees. The amount of any fee that may be (i) A depository institution shall provide account imposed in connection with the account (or an disclosures to a consumer upon request. If the explanation of how the fee will be determined) and consumer is not present at the institution when a the conditions under which the fee may be imposed. request is made, the institution shall mail or (5) Transaction limitations. Any limitations on the deliver the disclosures within a reasonable time number or dollar amount of withdrawals or deposits. after it receives the request. (6) Features of time accounts. For time accounts: (ii) In providing disclosures upon request, the (i) Time requirements. The maturity date. institution may: (ii) Early withdrawal penalties. A statement that a (A) Specify an interest rate and annual percent- penalty will or may be imposed for early withage yield that were offered within the most drawal, how it is calculated, and the conditions recent seven calendar days; state that the rate for its assessment. and yield are accurate as of an identified date; (iii) Withdrawal of interest prior to maturity. If and provide a telephone number consumers compounding occurs during the term and interest may call to obtain current rate information. may be withdrawn prior to maturity, a statement (B) State the maturity of a time account as a that the annual percentage yield assumes interest term rather than a date. remains on deposit until maturity and that a (b) Content of account disclosures. Account disclo- withdrawal will reduce earnings. sures shall include the following, as applicable: (iv) Renewal policies. A statement of whether or (1) Rate information — (i) Annual percentage yield not the account will renew automatically at and interest rate. The "annual percentage yield" maturity. If it will, a statement of whether or not and the "interest rate," using those terms, and for a grace period will be provided and, if so, the fixed-rate accounts the period of time the interest length of that period must be stated. If the rate will be in effect. account will not renew automatically, a state- (ii) Variable rates. For variable-rate accounts: ment of whether interest will be paid after ma- (A) The fact that the interest rate and annual turity if the consumer does not renew the acpercentage yield may change; count must be stated. (B) How the interest rate is determined; (7) Bonuses. The amount or type of any bonus, (C) The frequency with which the interest rate when the bonus will be provided, and any minimum may change; and balance and time requirements to obtain the bonus. (D) Any limitation on the amount the interest (c) Notice to existing account holders — rate may change. (1) Notice of availability of disclosures. Depository (2) Compounding and crediting — (i) Frequency. institutions shall provide a notice to consumers who The frequency with which interest is compounded receive periodic statements and who hold existing and credited. accounts of the type offered by the institution on (ii) Effect of closing an account. If consumers will March 21, 1993. The notice shall be included on or forfeit interest if they close the account before with the first periodic statement sent on or after accrued interest is credited, a statement that March 21, 1993 (or on or with the first periodic interest will not be paid in such cases. statement for a statement cycle beginning on or after (3) Balance information — (i) Minimum balance that date). The notice shall state that consumers requirements. Any minimum balance required to: may request account disclosures containing terms, (A) Open the account; fees, and rate information for their account. In (B) Avoid the imposition of a fee; or responding to such a request, institutions shall pro- (C) Obtain the annual percentage yield dis- vide disclosures in accordance with paragraph (a)(2) closed. of this section. Except for the balance to open the account, the (2) Alternative to notice. As an alternative to the disclosure shall state how the balance is deter- notice described in paragraph (c)(1) of this section, mined for these purposes, institutions may provide account disclosures to con- (ii) Balance computation method. An explanation sumers. The disclosures may be provided either of the balance computation method specified in with a periodic statement or separately, but must be section 230.7 of this part used to calculate interest sent no later than when the periodic statement on the account. described in paragraph (c)(1) is sent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 849 Section 230.5—Subsequent disclosures. that those rates have not yet been determined, the date when they will be determined, and a (a) Change in terms—(1) Advance notice required. A telephone number the consumer may call to depository institution shall give advance notice to obtain the interest rate and the annual percentaffected consumers of any change in a term required age yield that will be paid for the new account); to be disclosed under section 230.4(b) of this part if and the change may reduce the annual percentage yield (C) Any difference in the terms of the new or adversely affect the consumer. The notice shall account as compared to the terms required to include the effective date of the change. The notice be disclosed under section 230.4(b) of this part shall be mailed or delivered at least 30 calendar days for the existing account. before the effective date of the change. (c) Notice for time accounts one month or less that (2) No notice required. No notice under this section is renew automatically. For time accounts with a marequired for: turity one month or less that renew automatically at (i) Variable-rate changes. Changes in the interest maturity, institutions shall disclose any difference in rate and corresponding changes in the annual the terms of the new account as compared to the percentage yield in variable-rate accounts. terms required to be disclosed under section 230.4(b) (ii) Check printing fees. Changes in fees assessed of this part for the existing account, other than a by third parties for check printing. change in the interest rate and corresponding change (iii) Short-term time accounts. Changes in any in the annual percentage yield. The notice shall be term for time accounts with maturities of one mailed or delivered within a reasonable time after the month or less. renewal. (b) Notice before maturity for time accounts longer (d) Notice before maturity for time accounts longer than one month that renew automatically. For time than one year that do not renew automatically. For accounts with a maturity longer than one month that time accounts with a maturity longer than one year renew automatically at maturity, institutions shall pro- that do not renew automatically at maturity, instituvide the disclosures described below before maturity. tions shall disclose to consumers the maturity date The disclosures shall be mailed or delivered at least 30 and whether interest will be paid after maturity. The calendar days before maturity of the existing account. disclosures shall be mailed or delivered at least Alternatively, the disclosures may be mailed or deliv- 10 calendar days before maturity of the existing ered at least 20 calendar days before the end of the account. grace period on the existing account, provided a grace period of at least five calendar days is allowed. Section 230.6—Periodic statement disclosures. (1) Maturities of longer than one year. If the maturity is longer than one year, the institution shall (a) General rule. If a depository institution mails or provide account disclosures set forth in section delivers a periodic statement, the statement shall 230.4(b) of this part for the new account, along with include the following disclosures: the date the existing account matures. If the interest (1) Annual percentage yield earned. The "annual rate and annual percentage yield that will be paid for percentage yield earned" during the statement pethe new account are unknown when disclosures are riod, using that term, calculated according to the provided, the institution shall state that those rates rules in Appendix A of this part. have not yet been determined, the date when they (2) Amount of interest. The dollar amount of interest will be determined, and a telephone number con- earned during the statement period. sumers may call to obtain the interest rate and the (3) Fees imposed. Fees required to be disclosed annual percentage yield that will be paid for the new under section 230.4(b)(4) of this part that were account. debited to the account during the statement period. (2) Maturities of one year or less but longer than one The fees shall be itemized by type and dollar month. If the maturity is one year or less but longer amounts. than one month, the institution shall either: (4) Length of period. The total number of days in the (i) Provide disclosures as set forth in paragraph statement period, or the beginning and ending dates (b)(1) of this section; or of the period. (ii) Disclose to the consumer: (b) Special rule for average daily balance method. In (A) The date the existing account matures and making the disclosures described in paragraph (a) of the new maturity date if the account is renewed; this section, institutions that use the average daily (B) The interest rate and the annual percentage balance method and that calculate interest for a period yield for the new account if they are known (or other than the statement period shall calculate and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

850 Federal Reserve Bulletin • November 1992 disclose the annual percentage yield earned and ously than, the annual percentage yield to which it amount of interest earned based on that period rather relates. than the statement period. The information in para- (c) When additional disclosures are required. Except graph (a)(4) of this section shall be stated for that as provided in paragraph (e) of this section, if the period as well as for the statement period. annual percentage yield is stated in an advertisement, the advertisement shall state the following informa- Section 230.7—Payment of interest. tion, to the extent applicable, clearly and conspicuously: (a) Permissible methods—(1) Balance on which inter- (1) Variable rates. For variable-rate accounts, a est is calculated. Institutions shall calculate interest statement that the rate may change after the account on the full amount of principal in an account for each is opened. day by use of either the daily balance method or the (2) Time annual percentage yield is offered. The average daily balance method.1 period of time the annual percentage yield will be (2) Determination of minimum balance to earn offered, or a statement that the annual percentage interest. An institution shall use the same method to yield is accurate as of a specified date. determine any minimum balance required to earn (3) Minimum balance. The minimum balance reinterest as it uses to determine the balance on which quired to obtain the advertised annual percentage interest is calculated. An institution may use an yield. For tiered-rate accounts, the minimum baladditional method that is unequivocally beneficial to ance required for each tier shall be stated in close the consumer. proximity and with equal prominence to the appli- (b) Compounding and crediting policies. This section cable annual percentage yield. does not require institutions to compound or credit (4) Minimum opening deposit. The minimum deposit interest at any particular frequency. required to open the account, if it is greater than the (c) Date interest begins to accrue. Interest shall begin minimum balance necessary to obtain the advertised to accrue not later than the business day specified for annual percentage yield. interest-bearing accounts in section 606 of the Expe- (5) Effect of fees. A statement that fees could reduce dited Funds Availability Act (12 U.S.C. 4005 et seq.) the earnings on the account. and implementing Regulation CC (12 C.F.R. 229). (6) Features of time accounts. For time accounts: Interest shall accrue until the day funds are with- (i) Time requirements. The term of the account. drawn. (ii) Early withdrawal penalties. A statement that a penalty will or may be imposed for early with- Section 230.8—Advertising. drawal. (d) Bonuses. Except as provided in paragraph (e) of (a) Misleading or inaccurate advertisements. An ad- this section, if a bonus is stated in an advertisement, vertisement shall not be misleading or inaccurate and the advertisement shall state the following informashall not misrepresent a depository institution's de- tion, to the extent applicable, clearly and conspicuposit contract. An advertisement shall not refer to or ously: describe an account as "free" or "no cost" (or (1) The "annual percentage yield," using that term; contain a similar term) if any maintenance or activity (2) The time requirement to obtain the bonus; fee may be imposed on the account. The word "prof- (3) The minimum balance required to obtain the it" shall not be used in referring to interest paid on an bonus; account. (4) The minimum balance required to open the (b) Permissible rates. If an advertisement states a rate account, if it is greater than the minimum balance of return, it shall state the rate as an "annual percent- necessary to obtain the bonus; and age yield" using that term. (The abbreviation "APY" (5) When the bonus will be provided. may be used provided the term "annual percentage (e) Exemption for certain advertisements. If an adveryield" is stated at least once in the advertisement.) tisement is made through one of the following media, it The advertisement shall not state any other rate, need not contain the information in paragraphs (c)(1), except that the "interest rate," using that term, may (c)(2), (c)(4), (c)(5), (c)(6)(ii), (d)(4), and (d)(5) of this be stated in conjunction with, but not more conspicu- section: (1) Broadcast or electronic media, such as television or radio; (2) Outdoor media, such as billboards; 1. Institutions shall calculate interest by use of a daily rate of at least (3) Telephone response machines; or 1/365 of the interest rate. In a leap year a daily rate of 1/366 of the interest rate may be used. (4) Lobby boards inside a depository institution or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 851 deposit broker (provided they contain a notice ad- interest that would be earned by the consumer for the vising consumers to contact an employee for further term of the account and the amount of principal used information). to calculate that interest. Special rules apply to accounts with tiered and stepped interest rates. Section 230.9—Enforcement and record retention. A. General rules (a) Administrative enforcement. Section 270 of the act The annual percentage yield shall be calculated by the contains the provisions relating to administrative sanc- formula shown below. Institutions shall calculate the tions for failure to comply with the requirements of the annual percentage yield based on the actual number of act and this regulation. Compliance is enforced by the days in the term of the account. For accounts without agencies listed in that section. a stated maturity date (such as a typical savings or (b) Civil liability. Section 271 of the act contains the transaction account), the calculation shall be based on provisions relating to civil liability for failure to com- an assumed term of 365 days. In determining the total ply with the requirements of the act and this regula- interest figure to be used in the formula, institutions tion. shall assume that all principal and interest remain on (c) Record retention. A depository institution shall deposit for the entire term and that no other transacretain evidence of compliance with this regulation for tions (deposits or withdrawals) occur during the term.4 a minimum of two years after the date disclosures are For time accounts that are offered in multiples of required to be made or action is required to be taken. months, institutions may base the number of days on The administrative agencies responsible for enforcing either the actual number of days during the applicable the regulation may require depository institutions un- period, or the number of days that would occur for any der their jurisdiction to retain records for a longer actual sequence of that many calendar months. If period if necessary to carry out their enforcement institutions choose to use the latter rule, they must use responsibilities under section 270 of the act. the same number of days to calculate the dollar amount of interest earned on the account that is used in the annual percentage yield formula (where "Inter- APPENDIX A TO PART 230—ANNUAL est" is divided by "Principal"). PERCENTAGE YIELD CALCULATION The annual percentage yield is calculated by use of the following general formula ("APY" is used for The annual percentage yield measures the total convenience in the formulas): amount of interest paid on an account based on the interest rate and the frequency of compounding.2 The APY = 100 [(1 + Interest/Principal)(365/Days in term) - 1] annual percentage yield is expressed as an annualized rate, based on a 365-day year.3 Part I of this appendix "Principal" is the amount of funds assumed to discusses the annual percentage yield calculations for have been deposited at the beginning of the acaccount disclosures and advertisements, while Part II count. "Interest" is the total dollar amount of discusses annual percentage yield earned calculations interest earned on the Principal for the term of the for periodic statements. account. "Days in term" is the actual number of days in the term of the account. Part I. Annual percentage yield for account disclosures and advertising purposes. When the "days in term" is 365 (that is, where the stated maturity is 365 days or where the account does In general, the annual percentage yield for account not have a stated maturity), the annual percentage disclosures under sections 230.4 and 230.5 and for yield can be calculated by use of the following simple advertising under section 230.8 is an annualized rate formula: that reflects the relationship between the amount of APY - 100 (Interest/Principal) 2. The annual percentage yield reflects only interest and does not include the value of any bonus (or other consideration worth $10 or less) that may be provided to the consumer to open, maintain, increase or renew an account. Interest or other earnings are not to be included in the annual percentage yield if such amounts are determined by 4. This assumption shall not be used if an institution requires, as a circumstances that may or may not occur in the future. condition of the account, that consumers withdraw interest during the 3. Institutions may calculate the annual percentage yield based on a term. In such a case, the interest (and annual percentage yield 365-day or a 366-day year in a leap year. calculation) shall reflect that requirement. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

852 Federal Reserve Bulletin • November 1992 Examples: interest for two years is $133.13, and, using the general formula above, the annual percentage yield is 6.45%: (1) If an institution pays $61.68 in interest for a 365-day year on $1,000 deposited into a NOW account, using APY = 100 [(1 + 133.13/1,000)(365/73O) - 1] the general formula above, the annual percentage yield APY = 6.45% is 6.17%: C. Variable-rate accounts. APY = 100 [(1 + 61.68/1,000)(365/365) - 1] APY = 6.17%. For variable-rate accounts without an introductory premium or discounted rate, an institution must base the calculation only on the initial interest rate in effect Or, using the simple formula above (since, as an when the account is opened (or advertised), and account without a stated term, the term is deemed to assume that this rate will not change during the year. be 365 days): Variable-rate accounts with an introductory premium (or discount) rate must be calculated like a stepped-rate APY = 100 (61.68/1,000) account. Thus, an institution shall assume that: APY = 6.17% (1) The introductory interest rate is in effect for the length of time provided for in the deposit contract; (2) If an institution pays $30.37 in interest on a $1,000 and six-month certificate of deposit (where the six-month (2) The variable interest rate that would have been in period used by the institution contains 182 days), using effect when the account is opened or advertised (but the general formula above, the annual percentage yield for the introductory rate) is in effect for the remainis 6.18%: der of the year. APY = 100 [(1 + 30.37/1,000)(365/182) - 1] If the variable rate is tied to an index, the index-based APY = 6.18% rate in effect at the time of disclosure must be used for the remainder of the year. If the rate is not tied to an index, the rate in effect for existing consumers holding B. Stepped-rate accounts (different rates apply the same account (who are not receiving the introducin succeeding periods). tory interest rate) must be used for the remainder of the year. For accounts with two or more interest rates applied in For example, if an institution offers an account on succeeding periods (where the rates are known at the which it pays a 7% interest rate, compounded daily, time the account is opened), an institution shall as- for the first three months (which, for example, contain sume each interest rate is in effect for the length of 91 days), while the variable interest rate that would time provided for in the deposit contract. have been in effect when the account was opened was 5%, the total interest for a 365-day year for a $1,000 Examples: deposit is $56.52 (based on 91 days at 7% followed by 274 days at 5%). Using the simple formula, the annual (1) If an institution offers a $1,000 6-month certificate percentage yield is 5.65%: of deposit on which it pays a 5% interest rate, compounded daily, for the first three months (which con- APY = 100 (56.52/1,000) tain 91 days), and a 5.5% interest rate, compounded APY = 5.65% daily, for the next three months (which contain 92 days), the total interest for six months is $26.68 and, D. Tiered-rate accounts (different rates apply to using the general formula above, the annual percent- specified balance levels). age yield is 5.39%: For accounts in which two or more interest rates paid APY = 100 [(1 + 26.68/1,000)(365/183) - 1] on the account are applicable to specified balance APY = 5.39% levels, the institution must calculate the annual percentage yield in accordance with the method described (2) If an institution offers a $1,000 two-year certificate below that it uses to calculate interest. In all cases, an of deposit on which it pays a 6% interest rate, com- annual percentage yield (or a range of annual percentpounded daily, for the first year, and a 6.5% interest age yields, if appropriate) must be disclosed for each rate, compounded daily, for the next year, the total balance tier. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 853 For purposes of the examples discussed below, interest on a $20,000 deposit. Thus, using the simple assume the following: formula, the annual percentage yield for the third tier is 5.92%: Interest rate Deposit balance required to earn rate APY = 100 (1,183.61/20,000) APY = 5.92% 5.25% up to but not exceeding $2,500 5.50% above $2,500 but not exceeding $15,000 5.75% above $15,000 Tiering Method B Tiering Method A Under this method, an institution pays the stated interest rate only on that portion of the balance within Under this method, an institution pays on the full the specified tier. For example, if a consumer deposits balance in the account the stated interest rate that $8,000, the institution pays 5.25% on $2,500 and 5.50% corresponds to the applicable deposit tier. For exam- on $5,500 (the difference between $8,000 and the first ple, if a consumer deposits $8,000, the institution pays tier cut-off of $2,500). the 5.50% interest rate on the entire $8,000. The institution that computes interest in this manner When this method is used to determine interest, must provide a range that shows the lowest and the only one annual percentage yield will apply to each highest annual percentage yields for each tier (other tier. With each tier, the annual percentage yield will than for the first tier, which, like the tiers in Method A, not vary with the amount of principal assumed to have has the same annual percentage yield throughout). The been deposited. low figure for an annual percentage yield range is For the interest rates and deposit balances assumed calculated based on the total amount of interest earned above, the institution will state three annual percent- for a year assuming the minimum principal required to age yields — one corresponding to each balance tier. earn the interest rate for that tier. The high figure for Calculation of each annual percentage yield is similar an annual percentage yield range is based on the for this type of account as for accounts with a single amount of interest the institution would pay on the interest rate. Thus, the calculation is based on the total highest principal that could be deposited to earn that amount of interest that would be received by the same interest rate. If the account does not have a limit consumer for each tier of the account for a year and on the maximum amount that can be deposited, the the principal assumed to have been deposited to earn institution may assume any amount. that amount of interest. For the tiering structure assumed above, the institution would state a total of five annual percentage yields — one figure for the first tier and two figures First tier. Assuming daily compounding, the institustated as a range for the other two tiers. tion will pay $53.90 in interest on a $1,000 deposit. Using the general formula, for the first tier, the annual percentage yield is 5.39%: First tier. Assuming daily compounding, the institution would pay $53.90 in interest on a $1,000 deposit. APY = 100 [(1 + 53.90/l,000)(365/365) - 1] For this first tier, using the simple formula, the annual percentage yield is 5.39%: APY = 5.39% Using the simple formula: APY = 100 (53.90/1,000) APY = 5.39% APY = 100 (53.90/1,000) APY = 5.39% Second tier. For the second tier, the institution would pay between $134.75 and $841.45 in interest, Second tier. The institution will pay $452.29 in based on assumed balances of $2,500.01 and $15,000, interest on a $8,000 deposit. Thus, using the simple respectively. For $2,500.01, interest would be figured formula, the annual percentage yield for the second on $2,500 at 5.25% interest rate plus interest on $.01 at tier is 5.65%: 5.50%. For the low end of the second tier, therefore, the annual percentage yield is 5.39%, using the simple APY = 100 (452.29/8,000) formula: APY = 5.65% APY = 100 (134.75/2,500) Third tier. The institution will pay $1,183.61 in APY = 5.39% Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

854 Federal Reserve Bulletin • November 1992 For $15,000, interest is figured on $2,500 at 5.25% reflects the relationship between the amount of interinterest rate plus interest on $12,500 at 5.50% interest est actually earned on the consumer's account during rate. For the high end of the second tier, the annual the statement period and the average daily balance in percentage yield, using the simple formula, is 5.61%: the account for the statement period. Pursuant to section 230.6(b), however, if an institution uses the APY = 100 (841.45/15,000) average daily balance method and calculates interest APY = 5.61% for a period other than the statement period, the annual percentage yield earned shall reflect the rela- Thus, the annual percentage yield range for the second tionship between the amount of interest earned and the tier is 5.39% to 5.61%. average daily balance in the account for that other period. Third tier. For the third tier, the institution would The annual percentage yield earned shall be calcupay $841.45 in interest on the low end of the third tier lated by using the following formula ("APY Earned" (a balance of $15,000.01). For $15,000.01, interest is used for convenience in the formulas): would be figured on $2,500 at 5.25% interest rate, plus interest on $12,500 at 5.50% interest rate, plus interest APY Earned = 100 [(1 + Interest earned/ on $.01 at 5.75% interest rate. For the low end of the third tier, therefore, the annual percentage yield (using Balance)(365/Days in period) - 1] the simple formula) is 5.61%: "Balance" is the average daily balance in the APY = 100(841.45/15,000) account for the period. "Interest earned" is the APY = 5.61% actual amount of interest earned on the account for the period. "Days in period" is the actual Since the institution does not limit the account bal- number of days for the period. ance, it may assume any maximum amount for the purposes of computing the annual percentage yield for Examples: the high end of the third tier. For an assumed maximum balance amount of $100,000, interest would be (1) Assume an institution calculates interest for the figured on $2,500 at 5.25% interest rate, plus interest statement period (and uses either the daily balance on $12,500 at 5.50% interest rate, plus interest on or the average daily balance method), and the ac- $85,000 at 5.75% interest rate. For the high end of the count has a balance of $1,500 for 15 days and a third tier, therefore, the annual percentage yield, using balance of $500 for the remaining 15 days of a 30-day the simple formula, is 5.87%: statement period. The average daily balance for the period is $1,000. The interest earned (under either APY = 100 (5,871.79/100,000) balance computation method) is $5.25 during the APY = 5.87% period. The annual percentage yield earned (using the formula above) is 6.58%: Thus, the annual percentage yield range that would be stated for the third tier is 5.61% to 5.87%. If the APY Earned = 100 [(1 + 5.25/1,000)(365/3O) - 1] assumed maximum balance amount is $1,000,000 in- APY Earned = 6.58% stead of $100,000, the institution would use $985,000 rather than $85,000 in the last calculation. In that case, for the high end of the third tier the annual percentage (2) Assume an institution calculates interest on the yield, using the simple formula, is 5.91%: average daily balance for the calendar month and provides periodic statements that cover the period APY = 100(59134.22/1,000,000) from the 16th of one month to the 15th of the next APY = 5.91% month. The account has a balance of $2,000 September 1 through September 15 and a balance of Thus, the annual percentage yield range that would be $1,000 for the remaining 15 days of September. The stated for the third tier is 5.61% to 5.91%. average daily balance for the month of September is $1,500, which results in $6.50 in interest earned for Part II. Annual percentage yield earned for the month. The annual percentage yield earned for periodic statements. the month of September would be shown on the periodic statement covering September 16 through The annual percentage yield earned for periodic state- October 15. The annual percentage yield earned ments under section 230.6(a) is an annualized rate that (using the formula above) is 5.40%: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 855 APY Earned = 100 [(1 + 6.50/1,500)(365/3O) - 1] Determination of rate APY Earned = 5.40% The interest rate on your account is based on (3) Assume an institution calculates interest on the (name of index) [plus/minus a margin of ] average daily balance for a quarter (for example, the calendar months of September through November), At our discretion, we may change the interest rate and provides monthly periodic statements covering on your account. calendar months. The account has a balance of $1,000 throughout the 30 days of September, a Frequency of rate changes balance of $2,000 throughout the 31 days of October, and a balance of $3,000 throughout the 30 days We may change the interest rate on your account of November. The average daily balance for the [every (time period) /at any time]. quarter is $2,000, which results in $21 in interest earned for the quarter. The annual percentage yield Limitations on rate changes earned would be shown on the periodic statement for November. The annual percentage yield earned The interest rate for your account will never (using the formula above) is 4.28%: change by more than % each (time period) . The interest rate will never be [less/more] than APY Earned = 100 [(1 + 21/2,000)(365/91) - 1] %. APY Earned = 4.28% The interest rate will never [exceed % above/ drop more than % below] the interest rate APPENDIX B TO PART 230—MODEL CLAUSES initially disclosed to you. AND SAMPLE FORMS (iii) Stepped-rate accounts. The initial interest rate for your account is %. B-l—Model Clauses for Account Disclosures (Section You will be paid this rate [for (time period) 230.4(b)) /until (date) ]. After that time, the interest rate B-2—Model Clauses for Change in Terms (Section for your account will be %, and you will be 230.5(a)) paid this rate [for (time period) until (date) ]. B-3—Model Clauses for Pre-Maturity Notices for The annual percentage yield for your account is Time Accounts (Sections 230.5(b)(2) and %. 230.5(d)) (iv) Tiered-rate accounts. B-4—Sample Form (Multiple Accounts) B-5—Sample Form (NOW Account) Tiering Method A B-6—Sample Form (Tiered Rate Money Market Account) • If your [daily balance/average daily balance] is B-7—Sample Form (Certificate of Deposit) $ or more, the interest rate paid on the entire B-8—Sample Form (Certificate of Deposit Advertise- balance in your account will be % with an ment) annual percentage yield of %. B-9—Sample Form (Money Market Account Adver- • If your [daily balance/average daily balance] is tisement) more than $ , but less than $ , the interest rate paid on the entire balance in your account B-l—Model Clauses for Account Disclosures will be % with an annual percentage yield of %. (a) Rate information. • If your [daily balance/average daily balance] is (i) Fixed-rate accounts. $ or less, the interest rate paid on the entire The interest rate on your account is % with balance will be % with an annual percentage an annual percentage yield of %. You will be yield of %. paid this rate [for (time period) /until (date) /for at least 30 calendar days]. Tiering Method B (ii) Variable-rate accounts. The interest rate on your account is % with • An interest rate of % will be paid only for that an annual percentage yield of %. portion of your [daily balance/average daily bal- Your interest rate and annual percentage yield ance] that is greater than $ . The annual may change. percentage yield for this tier will range from Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

856 Federal Reserve Bulletin • November 1992 % to %, depending on the balance in the on your account. This method applies a periodic account. rate to the average daily balance in the account for • An interest rate of % will be paid only for that the period. The average daily balance is calcuportion of your [daily balance/average daily bal- lated by adding the principal in the account for ance] that is greater than $ , but less than each day of the period and dividing that figure by $ . The annual percentage yield for this tier the number of days in the period. will range from % to %, depending on the (e) Accrual of interest on noncash deposits. Interest balance in the account. begins to accrue no later than the business day we • If your [daily balance/average daily balance] is receive credit for the deposit of noncash items (for $ or less, the interest rate paid on the entire example, checks). balance will be % with an annual percentage yield of %. or (b) Compounding and crediting. (i) Frequency. Interest begins to accrue on the business day you Interest will be compounded [on a basis/ deposit noncash items (for example, checks). every (time period) ]. (f) Fees. Interest will be credited to your account [on a The following fees may be assessed against your basis/every (time period) ]. account: (ii) Effect of closing an account. If you close your account before interest is credited, you will not $ receive the accrued interest. (c) Minimum balance requirements. $ (i) To open the account. You must deposit $ to open this account. $ (ii) To avoid imposition of fees. A minimum balance fee of $ will be imposed (conditions for imposing fees) $ every (time period) if the balance in the account falls below $ any day of the (time period) . % of A minimum balance fee of $ will be imposed every (time period) if the average daily balance (g) Transaction limitations. for the (time period) falls below $ . The The minimum amount you may [withdraw/write a average daily balance is calculated by adding the check for] is $ . principal in the account for each day of the period You may make [deposits into/withdrawals and dividing that figure by the number of days in from] your account each (time period) . the period. You may not make [deposits into/withdrawals (iii) To obtain the annual percentage yield dis- from] your account until the maturity date. closed. (h) Disclosures relating to time accounts. You must maintain a minimum balance of $ (i) Time requirements. in the account each day to obtain the disclosed Your account will mature on (date) . annual percentage yield. Your account will mature in (time period) . You must maintain a minimum average daily (ii) Early withdrawal penalties. balance of $ to obtain the disclosed annual We [will/may] impose a penalty if you withdraw percentage yield. The average daily balance is [any/all] of the [deposited funds/principal] before calculated by adding the principal in the account the maturity date. The fee imposed will equal for each day of the period and dividing that figure days/week[s]/month[s] of interest. by the number of days in the period. (d) Balance computation method. or (i) Daily balance method. We use the daily balance method to calculate the interest on your We [will/may] impose a penalty of $ if you account. This method applies a daily periodic rate withdraw [any/all] of the [deposited funds/princito the principal in the account each day. pal] before the maturity date. (ii) Average daily balance method. We use the If you withdraw some of your funds before matuaverage daily balance method to calculate interest rity, the interest rate for the remaining funds in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 857 your account will be % with an annual per- B-2—Model Clauses for Change in Terms centage yield of %. (iii) Withdrawal of interest prior to maturity. On (date) , the cost of (type of fee) will The annual percentage yield assumes interest will increase to $ . remain on deposit until maturity. A withdrawal On (date) , the interest rate on your account will will reduce earnings. decrease to % with an annual percentage (iv) Renewal policies. yield of % (1) Automatically renewable time accounts. On (date) , the minimum [daily balance/average This account will automatically renew at matu- daily balance] required to avoid imposition of a rity. You will have [ calendar/business] fee will increase to $ . days after the maturity date to withdraw funds without penalty. B-3—Model Clauses for Pre-Maturity Notices for Time Accounts or (a) Automatically renewable time accounts with matu- There is no grace period following the maturity rities of one year or less but longer than one month. of this account to withdraw funds without Your account will mature on (date) . penalty. If the account renews, the new maturity date will (2) Non-automatically renewable time accounts. be (date) . This account will not renew automatically at ma- The interest rate for the renewed account will be turity. If you do not renew the account, your % with an annual percentage yield of %. deposit will be placed in [an interest-bearing!a noninterest-bearing] account. (i) Bonuses. The interest rate and annual percentage yield have You will [be paid/receive] [$ / (description not yet been determined. They will be available of item/ ] as a bonus [when you open the ac- on (date) . Please call (phone number) to learn count/on (date) ]. the interest rate and annual percentage yield for You must maintain a minimum [daily balance/ your new account, average daily balance] of $ to obtain the (b) Non-automatically renewable time accounts with bonus. maturities longer than one year. To earn the bonus, [$ /your entire principal] Your account will mature on (date) . must remain on deposit [for (time period) /until If you do not renew the account, interest [will/will (date) ]. not] be paid after maturity. [Legal Developments continues on next page.] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

858 Federal Reserve Bulletin • November 1992 APPENDIX B—SAMPLE FORMS B-4 -- SAMPLE FORM (MULTIPLE ACCOUNTS) BANK ABC DISCLOSURE OF ACCOUNT TERMS This disclosure contains information about your: X NOW Account • Your interest rate and annual percentage yield may change. At our discretion, we may change the interest rate on your account daily. The interest rate for your account will never be less than 2.00%. • Interest begins to accrue on the business day you deposit noncash items (for example, checks). • Interest is compounded daily and credited on the last day of each month. If you close your account before interest is credited, you will not receive the accrued interest. • We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day. Passbook Savings Account • The interest rate on your account will be paid for at least 30 days. • Interest begins to accrue on the business day you deposit noncash items (for example, checks). • Interest is compounded daily and credited on the last day of each month. If you close your account before interest is credited, you will not receive the accrued interest. • We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day. Additional disclosures for your account are included on the attached sheets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 859 APPENDIX B—SAMPLE FORMS Money Market Account • Your interest rate and annual percentage yield may change. At our discretion, we may change the interest rate on your account daily. The interest rate on your account will never be less than 3.00%. • You may make six (6) transfers from your account, but only three (3) may be payments by check to third parties. • Interest begins to accrue on the business day you deposit noncash items (for example, checks). • Interest is compounded daily and credited on the last day of each month. If you close your account before interest is credited, you will not receive the accrued interest. • We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day. Certificates of Deposit The interest rate for your account will be paid until the maturity date of your certificate (. Interest is compounded daily and will be credited to your account monthly. Interest begins to accrue on the business day you deposit noncash items (for example, checks). This account will automatically renew at maturity. You will have ten (10) calendar days from the maturity date to withdraw your funds without being charged a penalty. After the account is opened, you may not make deposits into or withdrawals from this account until the maturity date. We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day. If any of the deposit is withdrawn before the maturity date, a penalty as shown below will be imposed: Early Withdrawal Term Penalty 3-month CD 30 days interest 6-month CD 90 days interest 1-year CD 120 days interest 2-year CD 180 days interest Additional disclosures for your account are included on the attached sheets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

860 Federal Reserve Bulletin • November 1992 APPENDIX B—SAMPLE FORMS (Fee Schedule Insert) BANK ABC FEE SCHEDULE NOW Account • Monthly minimum balance fee if the daily balance drops below $ 500 any day of the month $ 7.50 Passbook Savings Account • Monthly minimum balance fee if the daily balance drops below $ 100 any day of the month $ 6.00 • You may make three (3) withdrawals per quarter Each subsequent withdrawal $ 2.00 Money Market Account • Monthly minimum balance fee if the daily balance drops below $ 1,000 any day of the month $ 5.00 Other Account Fees • Deposited checks returned $ 5.00 • Balance inquiries (at a branch or at an ATM) $ 1.00 • Check printing • (Fee depends on style of check ordered) • Your check returned for insufficient funds (per check) • $ 16.00 • Stop payment request (per request) • $12.50 • Certified check (per check) • $ 10.00 • Fee does not apply to Passbook Savings Accounts or Certificates of Deposit. Additional disclosures for your account are included on the attached sheet. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 861 APPENDIX B—SAMPLE FORMS B-5 - SAMPLE FORM (NOW ACCOUNT) BANK XYZ DISCLOSURE OF INTEREST, FEES AND ACCOUNT TERMS NOW ACCOUNT Fee schedule • Monthly minimum balance fee if the daily balance drops below $1,000 any day of the month $ 7.00 • Fee to stop payment of a check $ 12.50 • Fee for check returns (insufficient funds - per check) $ 16.00 • Certified check (per check) $ 10.00 • Fee for initial check printing (per 200) $ 12.00 (Cost for check printing varies depending on the style of checks ordered.) Rate information • The interest rate for your account is 4.00 % with an annual percentage yield of 4.08 %. Your interest rate and annual percentage yield may change. At our discretion, we may change the interest rate for your account at any time. The interest rate for your account will never be less than 2% each year. Minimum balance requirements • You must deposit $500 to open this account. • You must maintain a minimum balance of $2,500 in the account each day to obtain the annual percentage yield listed above. Balance computation method • We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day. Compounding and crediting • Interest for your account will be compounded daily and credited to your account on the last day of each month. Accrual of interest on deposits other than cash • Interest begins to accrue on the business day you deposit noncash items (for example, checks). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

862 Federal Reserve Bulletin • November 1992 APPENDIX B—SAMPLE FORMS (Rate Sheet Insert) BANK ABC RATE SHEET MINIMUM DEPOSIT MINIMUM BALANCE* ANNUAL ACCOUNT TO OPEN TO OBTAIN INTEREST PERCENTAGE TYPE ACCOUNT ANNUAL PERCENTAGE YIELD RATE YIELD NOW $ 500 $ 2,500 4.00% 4.08% PASSBOOK SAVINGS $ 100 $ 500 3.50% 3.56% MONEY MARKET $ 1,000 $ 1,000 4.15% 4.24% 3-MONTH CD $ 1,000 $ 1,000 4.20% 4.29% 6-MONTH CD $ 1,000 $ 1,000 4.25% 4.34% 1-YEAR CD $ 1,000 $ 1,000 5.20% 5.34% 2-YEAR CD $ 1,000 $ 1,000 5.80% 5.97% * Daily balance (the amount of principal in the account each day) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 863 APPENDIX B—SAMPLE FORMS B-6 -- SAMPLE FORM (TIERED-RATE MONEY MARKET ACCOUNT) BANK ABC DISCLOSURE OF INTEREST, FEES AND ACCOUNT TERMS MONEY MARKET ACCOUNT Fee schedule • Check returned for insufficient funds (per check) $16.00 • Stop payment request (per request) $12.50 • Certified check (per check) $10.00 • Check printing (Fee depends on style of checks ordered) Rate information • If your daily balance is $15,000 or more, the interest rate paid on the entire balance in your account will be 5.75 % with an annual percentage yield of 5.92 %. • If your daily balance is more than $2,500, but less than $15,000, the interest rate paid on the entire balance in your account will be 5.50 % with an annual percentage yield of 5.65 %. • If your daily balance is $2,500 or less, the interest rate paid on the entire balance will be 5.25 % with an annual percentage yield of 5.39 %. • Your interest rate and annual percentage yield may change. At our discretion, we may change the interest rate for your account at any time. The interest rate for your account will never be less than 2.00%. • Interest begins to accrue on the business day you deposit noncash items (for example, checks). • Interest is compounded daily and credited on the last day of each month. Minimum balance requirements • You must deposit $1,000 to open this account. • A minimum balance fee of $5.00 will be imposed every month if the balance in your account falls below $1,000 any day of the month. Balance computation method • We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day. Transaction limitations • You may make six (6) transfers from your account, but only three (3) may be payments by check to third parties. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

864 Federal Reserve Bulletin • November 1992 APPENDIX B—SAMPLE FORMS B-7 -- SAMPLE FORM (CERTIFICATE OF DEPOSIT) XYZ SAVINGS BANK 1 YEAR CERTIFICATE OF DEPOSIT Rate information The interest rate for your account is 5.20 % with an annual percentage yield of 5.34 %. You will be paid this rate until the maturity date of the certificate. Your certificate will mature on September 30, 1993 . The annual percentage yield assumes interest remains on deposit until maturity. A withdrawal will reduce earnings. Interest for your account will be compounded daily and credited to your account on the last day of each month. Interest begins to accrue on the business day you deposit any noncash item (for example, checks). Minimum balance requirements You must deposit $1,000 to open this account. You must maintain a minimum balance of $1,000 in your account every day to obtain the annual percentage yield listed above. Balance computation method We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day. Transaction limitations After the account is opened, you may not make deposits into or withdrawals from the account until the maturity date. Early withdrawal penalty If you withdraw any principal before the maturity date, a penalty equal to three months interest will be charged to your account. Renewal policy This account will be automatically renewed at maturity. You have a grace period of ten (10) calendar days after the maturity date to withdraw the funds without being charged a penalty. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 865 APPENDIX B—SAMPLE FORMS B-8 -- SAMPLE FORM (CERTIFICATE OF DEPOSIT ADVERTISEMENT) BANK XYZ ALWAYS OFFERS YOU COMPETITIVE CD RATES!! ANNUAL PERCENTAGE CERTIFICATES OF DEPOSIT YIELD (APY) 5 YEAR 6.31% 4 YEAR 6.07% 3 YEAR 5.72% 2 YEAR 5.52% 1 YEAR 4.54% 6 MONTH 4.34% 90 DAY 4.21% APYs are offered on accounts opened from 5/9/93 through 5/18/93. The minimum balance to open an account and obtain the APY is $1,000. A penalty may be imposed for early withdrawal. For more information call: 202-123-1234 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

866 Federal Reserve Bulletin • November 1992 APPENDIX B—SAMPLE FORMS B-9 - SAMPLE FORM (MONEY MARKET ACCOUNT ADVERTISEMENT) BANK XYZ ALWAYS OFFERS YOU COMPETITIVE RATES!! MONEY MARKET ACCOUNTS ANNUAL PERCENTAGE YIELD (APY) Accounts with a 5.07%* balance of $5,000 or less Accounts with a 5.57%* balance over $5,000 APYs are accurate The rates may change after the as of April 30, 1993 account is opened. Fees could reduce the earnings on the account. For more information call: 202-123-1234 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 867 APPENDIX C TO PART 230—EFFECT ON STATE tions will not be issued separately but will be incorpo- LAWS rated in an official commentary to the regulation, which will be amended periodically. No staff interpretations (a) Inconsistent requirements. State law requirements will be issued approving depository institutions' forms, that are inconsistent with the requirements of the act statements, or calculation tools or methods. and this regulation are preempted to the extent of the inconsistency. A state law is inconsistent if it requires a depository institution to make disclosures or take actions that contradict the requirements of the federal FINAL RULE — AMENDMENT TO TITLE 12 OF law. A state law is also contradictory if it requires the THE CODE OF FEDERAL REGULATIONS use of the same term to represent a different amount or a different meaning than the federal law, requires the The Board of Governors is amending 12 C.F.R. Part use of a term different from that required in the federal 250, its Title 12 of the Code of Federal Regulations. law to describe the same item, or permits a method of The Board is adopting a rule to exclude from section calculating interest on an account different from that 23A of the Federal Reserve Act transactions between required in the federal law. affiliated insured depository institutions that are sub- (b) Preemption determinations. A depository institu- ject to the Bank Merger Act. The exclusion would be tion, state, or other interested party may request the available only for transactions that are approved by Board to determine whether a state law requirement the appropriate federal banking agency under the is inconsistent with the federal requirements. A Bank Merger Act. The exemption would be available request for a determination shall be in writing and by regulation, and transactions that meet the proaddressed to the Secretary, Board of Governors of posed criteria will not require additional Board rethe Federal Reserve System, Washington, DC 20551. view under section 23A. The exclusion is intended to Notice that the Board intends to make a determina- reduce unnecessary regulatory burden by eliminating tion (either on request or on its own motion) will be the need for duplicative federal applications. published in the Federal Register, with an opportu- Effective September 11, 1992, 12 C.F.R. Part 250 is nity for public comment unless the Board finds that amended as follows: notice and opportunity for comment would be impracticable, unnecessary, or contrary to the public Part 250—Miscellaneous Interpretations interest and publishes its reasons for such decision. Notice of a final determination will be published in 1. The authority citation for part 250 is revised to read the Federal Register and furnished to the party who as follows: made the request and to the appropriate state official. (c) Effect of preemption determinations. After the Authority: 12 U.S.C. 248(i) and 371c(e). Board determines that a state law is inconsistent, a depository institution may not make disclosures using 2. Section 250.241 is added as a new Miscellaneous the inconsistent term or take actions relying on the Interpretation to read as follows: inconsistent law. (d) Reversal of determination. The Board reserves the right to reverse a determination for any reason bearing Section 250.241—Exclusion from section 23A on the coverage or effect of state or federal law. Notice of the Federal Reserve Act for certain of reversal of a determination will be published in the transactions subject to review under the Bank Federal Register and a copy furnished to the appro- Merger Act. priate state official. (a) Grant of Exemption. Section 23A of the Federal Reserve Act shall not apply to a transaction between APPENDIX D TO PART 230—ISSUANCE OF STAFF affiliated insured depository institutions if the transac- INTERPRET A TIONS tion has been approved by the appropriate federal banking agency pursuant to the Bank Merger Act. Officials in the Board's Division of Consumer and (b) Definitions. For purposes of this section, the terms Community Affairs are authorized to issue official staff "appropriate federal banking agency" and "insured interpretations of this regulation. These interpretations depository institution" are defined as those terms are provide the protections afforded under section 271(f) of defined in section 3 of the Federal Deposit Insurance the act. Except in unusual circumstances, interpreta- Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

868 Federal Reserve Bulletin • November 1992 ORDERS ISSUED UNDER BANK HOLDING Private placement involves the placement of new COMPANY ACT issues of securities with a limited number of sophisticated purchasers in a nonpublic offering. A financial Orders Issued Under Section 4 of the Bank intermediary in a private placement transaction acts Holding Company Act solely as an agent of the issuer in soliciting purchasers, and does not purchase the securities and attempt to Skandinaviska Enskilda Banken resell them. Securities that are privately placed are not Stockholm, Sweden subject to the registration requirements of the Securities Act of 1933, and are offered only to financially Order Approving an Application to Act as Agent in sophisticated institutions and individuals and not to the Private Placement of Securities, and to Buy and the public. Applicant has committed that Company Sell Securities as a "Riskless Principal" will not privately place registered securities, and will only place securities with customers who qualify as Skandinaviska Enskilda Banken, Stockholm, Sweden accredited investors. ("Applicant"), a foreign bank subject to the provi- "Riskless principal" is the term used in the secusions of the Bank Holding Company Act ("BHC rities business to refer to a transaction in which a Act"), has applied for the Board's approval under broker-dealer, after receiving an order to buy (or sell) section 4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8)) a security from a customer, purchases (or sells) the and section 225.23 of the Board's Regulation Y security for its own account to offset a contempora- (12 C.F.R. 225.23), for its wholly owned subsidiary, neous sale to (or purchase from) the customer.3 Enskilda Securities Inc., New York, New York "Riskless principal" transactions are understood in ("Company"), to act as agent in the private placement the industry to include only transactions in the of all types of securities for non-United States issuers, secondary market. Thus, Applicant proposes that including providing related advisory services, and to Company would not act as a "riskless principal" in buy and sell all types of securities on the order of selling securities at the order of a customer that is the investors as a "riskless principal". issuer of the securities to be sold, or in any transac- Notice of the application, affording interested per- tion where Company has a contractual agreement to sons an opportunity to submit comments, has been place the securities as agent of the issuer. Company published (57 Federal Register 31,205 (1992)). The also would not act as a "riskless principal" in any time for filing comments has expired, and the Board transaction involving a security for which it makes a has considered the application and all comments re- market. ceived in light of the public interest factors set forth in The Board has previously determined that, subject section 4(c)(8) of the BHC Act. to a number of prudential limitations that address the Applicant, with total consolidated assets equivalent potential for conflicts of interests, unsound banking to approximately $76.7 billion, is the 61st largest bank practices, and other adverse effects, the proposed in the world, and the largest commercial banking private placement and riskless principal activities are organization in Sweden.1 In the United States, Appli- closely related to banking within the meaning of cant operates a branch in New York, and controls an section 4(c)(8) of the BHC Act.4 In those orders, the investment company subsidiary organized under Arti- Board also found that acting as agent in the private cle XII of the New York State Banking Law.2 placement of securities, and purchasing and selling Applicant currently engages through Company in securities on the order of investors as a "riskless full-service brokerage activities for institutional cus- principal", do not constitute underwriting and dealtomers, and discount brokerage activities for retail ing in securities for purposes of section 20 of the customers. Company is, and will continue to be, Glass-Steagall Act (12 U.S.C. § 377), and that reveregistered as a broker-dealer with the Securities and nue derived from such activities is not subject to the Exchange Commission, and a member of the National 10 percent revenue limitation on underwriting and Association of Securities Dealers ("NASD"). Accord- dealing in ineligible securities.5 In order to address ingly, Company is subject to the record-keeping, reporting, fiduciary standards, and other requirements of the Securities Exchange Act of 1934 and NASD. 3. See Securities and Exchange Commission Rule 10b-10. 17 C.F.R. 240.10b-10(a)(8)(i). 4. See J.P. Morgan & Company Incorporated, 76 Federal Reserve 1. Data are as of April 30, 1992. Bulletin 26 (1990); Bankers Trust New York Corporation, 75 Federal 2. See Skandinaviska Enskilda Banken, 69 Federal Reserve Bulletin Reserve Bulletin 829 (1989). 42 (1983). 5. Id. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 869 the potential for conflicts of interests, unsound bank- posal is not likely to result in any significantly adverse ing practices, or other adverse effects, Applicant has effects, such as an undue concentration of resources, committed that Company will conduct its private decreased or unfair competition, conflicts of interests, placement and "riskless principal" activities in a or unsound banking practices. manner consistent with the limitations, methods, and Consummation of the proposal would provide added procedures established by the Board in prior orders,6 convenience to Applicant's customers. In addition, as modified to reflect Applicant's status as a foreign the Board expects that the de novo entry of Applicant bank.7 into the market for these services in the United States In every case involving a nonbanking acquisition would increase the level of competition among providunder section 4 of the BHC Act, the Board considers ers of these services. Accordingly, the Board has the financial condition and resources of Applicant and determined that the performance of the proposed its subsidiaries and the effect of the proposal on these activities by Applicant can reasonably be expected to resources. In this case, the Board notes that Applicant produce public benefits that would outweigh adverse meets the relevant risk-based capital guidelines, and effects under the proper incident to banking standard that its core capital exceeds the 1992 minimum standard of section 4(c)(8) of the BHC Act. adopted by the Basle Committee. In view of these and Based on the foregoing and all the facts of record, other facts of record, the Board has determined that the the Board has determined to, and hereby does, apfinancial factors are consistent with approval of this prove the application subject to all of the terms and application. The managerial resources of Applicant and conditions set forth in this order, and in the aboveits subsidiaries also are consistent with approval. noted Board orders that relate to these activities. The In order to approve this application, the Board is Board's determination is also subject to all of the also required to determine that the performance of the terms and conditions set forth in the Board's Regulaproposed activities by Applicant can reasonably be tion Y, including those in sections 225.4(d) and expected to produce benefits to the public that would 225.23(b), and to the Board's authority to require outweigh possible adverse effects under the proper modification or termination of the activities of a bank incident to banking standard of section 4(c)(8) of the holding company or any of its subsidiaries as the BHC Act.8 Under the framework established in this Board finds necessary to assure compliance with, and and prior Board decisions, consummation of this pro- to prevent evasion of, the provisions of the BHC Act, and the Board's regulations and orders issued thereunder. The Board's decision is specifically conditioned 6. Id. on compliance with all of the commitments made in 7. See Sumitomo Bank, Limited, 11 Federal Reserve Bulletin 339 this application, including the commitments discussed (1991); Creditanstalt-Bankverein, 77 Federal Reserve Bulletin 183 (1991); The Royal Bank of Scotland Group PLC, 76 Federal Reserve in this order and the conditions set forth in the Bulletin 866 (1990). above-noted Board orders. These commitments are As detailed more fully in these orders, in addition to the commitments imposed by the Board in connection with underwriting and conditions imposed in writing by the Board in connecdealing in securities, Applicant has committed that Company will tion with its findings and decisions, and may be maintain specific records that will clearly identify all "riskless princienforced in proceedings under applicable law. pal" transactions, and that Company will not engage in any "riskless principal" transactions for any securities carried in its inventory. This transaction shall not be consummated later When acting as a "riskless principal", Company will only engage in than three months after the effective date of this transactions in the secondary market, and not at the order of a customer that is the issuer of the securities to be sold; will not act as Order, unless such period is extended for good cause "riskless principal" in any transaction involving a security for which by the Board or by the Federal Reserve Bank of New it makes a market; and will not hold itself out as making a market in York, pursuant to delegated authority. the securities that it buys and sells as a "riskless principal". Moreover, Company will not engage in "riskless principal" transactions on By order of the Board of Governors, effective behalf of its foreign affiliates that engage in securities dealing activities September 8, 1992. outside the United States and will not act as "riskless principal" for registered investment company securities. In addition, Company will not act as a "riskless principal" with respect to any securities of Voting for this action: Chairman Greenspan and Governors investment companies that are advised by Applicant or any of its affiliates. Angell, Kelley, La Ware, and Phillips. Absent and not voting: Governors Mullins and Lindsey. With regard to private placement activities, Applicant has committed that Company will not privately place registered investment company securities or securities of investment companies that are advised by Applicant or any of its affiliates. JENNIFER J. JOHNSON 8. 12 U.S.C. § 1843(c)(8). Associate Secretary of the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

870 Federal Reserve Bulletin • November 1992 Orders Issued Under Sections 3 and 4 of the gan, Indiana, Illinois, Ohio and Florida.3 INB, with Bank Holding Company Act approximately $4.2 billion in consolidated assets, controls five subsidiary banks in Indiana. NBD is the NBD Bancorp, Inc. fourth largest commercial banking organization in In- Detroit, Michigan diana, controlling deposits of $3.9 billion, representing approximately 8.2 percent of total deposits in commer- Order Approving Acquisition of a Bank Holding cial banks in the state. INB is the second largest Company commercial banking organization in Indiana, controlling deposits of $5.1 billion, representing approxi- NBD Bancorp, Inc. ("NBD"), and its wholly owned mately 10.7 percent of total deposits in commercial subsidiary, NBD Indiana, Inc., both of Detroit, Mich- banks in the state. Upon consummation of the proigan, bank holding companies within the meaning of posed transaction, NBD would become the largest the Bank Holding Company Act ("BHC Act"), have commercial banking organization in Indiana, controlapplied for approval from the Board of Governors of ling deposits of $9 billion, representing approximately the Federal Reserve System ("Board") under section 18.9 percent of total deposits in commercial banks in 3 of the BHC Act (12 U.S.C. § 1842) to acquire all the the state. voting shares of INB Financial Corporation, Indianapolis, Indiana ("INB"), and thereby indirectly acquire Douglas Amendment INB's subsidiary banks: INB National Bank, Indianapolis; INB Banking Company, Jeffersonville; INB Section 3(d) of the BHC Act, the Douglas Anfend- Banking Company, North, Chesterton; INB Banking ment, prohibits the Board from approving an applica- Company, Southwest, Evansville; INB Banking Com- tion by a bank holding company to acquire control of pany, Northeast, Fort Wayne; and INB National any bank located outside of the holding company's Bank, Northwest, Lafayette, all in Indiana. NBD also home state, unless such acquisition is "specifically has applied under section 4(c)(8) of the BHC Act to authorized by the statute laws of the State in which acquire the nonbanking subsidiaries of INB.1 NBD [the] bank is located, by language to that effect and not proposes to conduct the activities of these subsidiaries merely by implication." 12 U.S.C. § 1842(d). Under in accordance with the Board's Regulation Y. this proposal, NBD, which has Michigan as its home Notice of the applications, affording interested per- state, proposes to acquire INB, which has Indiana as sons an opportunity to submit comments, has been its home state.4 The Board previously has determined published (57 Federal Register 28,181, 36,650 and that the interstate banking statues of Indiana permit 40,915 (1992)). The time for filing comments has ex- the acquisition of Indiana banking organizations by pired,2 and the Board has considered the applications banking organizations located in Michigan.5 Accordingly, Board approval of this proposal is not prohibited and all comments received in light of the factors set by the Douglas Amendment. Approval of this proforth in sections 3(c) and 4(c)(8) of the BHC Act. posal, however, is conditioned on NBD's receiving all NBD, with approximately $33.6 billion in consolirequired state regulatory approvals. dated assets, controls 29 subsidiary banks in Michi- Competitive Considerations Bank and Security compete directly in the Fort 1. NBD has applied to acquire the following INB nonbanking subsidiaries: Wayne, Gary-Hammond, Indianapolis and Lafayette (1) INB Mortgage Corporation, Indianapolis, Indiana, and thereby banking markets, all in Indiana. In the Fort Wayne engage in making and servicing loans pursuant to section 225.25(b)(1) of the Board's Regulation Y; (2) INB Neighborhood Revitalization Corporation, Indianapolis, Indiana, and thereby engage in community development activities pursuant to section 225.25(b)(6) of the Board's Regulation Y; (3) Consumer Marketing Services, Inc., Indianapolis, Indiana, and 3. Asset data are as of July 1, 1992. Deposit data are as of June 30, thereby engage in credit insurance activities pursuant to section 1990. 225.25(b)(8)(i) of the Board's Regulation Y; and 4. A bank holding company's home state is that state in which the (4) INB Brokerage Services, Inc., Indianapolis, Indiana, and operations of the bank holding company's banking subsidiaries were thereby engage in securities brokerage activities pursuant to section principally conducted on July 1, 1966, or the date on which the 225.25(b)(15) of the Board's Regulation Y. company became a bank holding company, whichever is later. 2. NBD's application under section 4 of the BHC Act to acquire 5. See NBD Bancorp, Inc., 78 Federal Reserve Bulletin 572 (1992); INB's interest in BHC Financial, Inc., Philadelphia, Pennsylvania, a Ind. Code Ann. § 28-2-16-15, -16 (Burns Supp. 1986); and Mich. Stat. nonbanking company, was amended and republished for public com- Ann. § 23.710(130b) (Callaghan 1991). By agreement dated January 6, ment during the processing of these applications and will be consid- 1986, the banking departments of Indiana and Michigan determined ered at a later date. Acquisition of this nonbanking company cannot be that the banking laws of each state permitted the interstate acquisition consummated prior to approval of the Federal Reserve System. of banks between the states. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 871 banking market,6 NBD is the largest commercial bank- to potential entrants, and other facts of record in this ing or thrift organization (together "depository insti- case, the Board concludes that consummation of this tutions"), controlling deposits of $1.3 billion, repre- proposal would not have a significantly adverse effect senting approximately 30.4 percent of total deposits in on competition or the concentration of banking redepository institutions in the market ("market depos- sources in the Fort Wayne banking market. The Board its").7 INB is the fourth largest depository institution also concludes that consummation of this proposal in the Fort Wayne banking market, controlling depos- would not have a significantly adverse effect on comits of $155.7 million, representing approximately petition in any of the other relevant banking markets.10 3.6 percent of market deposits. Upon consummation of this proposal, NBD would remain the largest depos- Financial, Managerial and Other Considerations itory institution in the Fort Wayne banking market, controlling deposits of $1.5 billion, representing ap- The Board also concludes that the financial and manpoximately 34.0 percent of market deposits. The agerial resources and future prospects of NBD, INB, Herfindahl-Hirschman Index ("HHI") for this market and their subsidiary banks, and other factors the would increase by 217 points to 2384.8 Board is required to consider under section 3 of the Thirteen commercial banking organizations and one BHC Act, are consistent with approval of this prothrift institution would continue to operate in the Fort posal. Considerations relating to the convenience and Wayne banking market after consummation of the needs of the communities to be served also are conproposal. In addition, the Fort Wayne banking market sistent with approval. has certain features that make it attractive to potential NBD also has applied pursuant to section 4(c)(8) of entrants.9 In light of the number of competitors re- the BHC Act to acquire INB's nonbanking subsidiarmaining in the market, the attractiveness of the market ies. The Board has determined that each of the activities of these companies is closely related to banking and permissible for bank holding companies under section 4(c)(8) of the BHC Act. The Board has ap- 6. The Fort Wayne banking market is approximated by Allen, Dekalb, and Whitley Counties; Preble, Root and Union townships in proved applications by INB to own shares of each of Adams County; Union and Jefferson townships in Wells County; these companies, and NBD has committed to conduct Jackson and Union townships in Huntington County, all in Indiana; these activities in accordance with Regulation Y. and Carryall township in Paulding County and Hicksville township in Defiance County, both in Ohio. In order to approve an application under section 7. Market deposit data are based on calculations in which the 4(c)(8) of the BHC Act, the Board also is required to deposits of thrift institutions are included at 50 percent. The Board previously has indicated that thrift institutions have become, or have determine that the performance of the proposed activthe potential to become, major competitors of commercial banks. See ities by NBD "can reasonably be expected to produce Midwest Financial Group, 75 Federal Reserve Bulletin 386 (1989); benefits to the public . . . that outweigh possible National City Corporation, 70 Federal Reserve Bulletin 743 (1984). 8. Under the revised Department of Justice Merger Guidelines, 49 adverse effects, such as undue concentration of re- Federal Register 26,823 (1984), a market in which the post-merger sources, decreased or unfair competition, conflicts of HHI is above 1800 is considered to be highly concentrated. In such interests, or unsound banking practices." 12 U.S.C. markets, the Justice Department is likely to challenge a merger that increases the HHI by more than 50 points. The Department of Justice § 1843(c)(8). has informed the Board that, as a general matter, a bank merger or NBD operates subsidiaries engaged in nonbanking acquisition will not be challenged, in the absence of other factors indicating anticompetitive effects, unless the post-merger HHI is at activities that compete with INB's subsidiaries. In least 1800 and the merger increases the HHI by 200 points. The Justice each case, however, the markets for these services are Department has stated that the higher-than-normal HHI thresholds for unconcentrated and there are numerous providers of screening bank mergers for anticompetitive effects implicitly recognize the competitive effect of limited-purpose lenders and other these services. In light of these factors and the shares non-depository financial entities. of each of the markets controlled by NBD and INB, 9. The Fort Wayne banking market is the second largest Metropolitan Statistical Area ("MSA") in Indiana as measured by commercial the Board concludes that consummation of this probank deposits. The Fort Wayne banking market has significantly posal would not have a significantly adverse effect on greater deposits per office than other MSA markets in Indiana (on competition in the provision of these services in any average $46.7 million in 1989, compared to $30.5 million for other MSA markets in Indiana); and greater population per banking office relevant market. Furthermore, the record does not than other MSA markets in Indiana (on average 4,502 per office in indicate that consummation of this proposal is likely to 1989, compared to 4,024 for other MSA markets in Indiana). In addition, the Fort Wayne banking market experienced significantly greater growth in population from 1986 to 1989 than other MSA markets in Indiana (4.9 percent total growth in population during this 10. In the Gary-Hammond banking market, NBD would remain the period, compared to 1.0 percent total growth on average for other largest depository institution, and the HHI would increase by MSA markets in Indiana during this period); and significantly greater 308 points to 1374. NBD would become the largest depository growth in deposits from 1986 to 1989 than other MSA markets in institution in the Lafayette banking market, and the HHI would Indiana (22.3 percent total growth in deposits during this period, increase by 4 points to 2232. In the Indianapolis banking market, NBD compared to 17.6 percent total growth on average for other MSA would become the largest depository institution, and the HHI would markets in Indiana). increase by 101 points to 1876. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

872 Federal Reserve Bulletin • November 1992 result in any significantly adverse effects, such as it finds necessary to assure compliance with, or preundue concentration of resources, decreased or unfair vent evasion of, the provisions and purposes of the competition, conflicts of interests, or unsound banking BHC Act and the Board's regulations and orders practices. Accordingly, the Board has determined that issued thereunder. For purposes of this action, these the balance of public interest factors it must consider commitments and conditions will be considered conunder section 4(c)(8) of the BHC Act is favorable and ditions imposed in writing and, as such, may be consistent with approval of NBD's application to enforced in proceedings under applicable law. acquire the nonbanking subsidiaries of INB. The acquisition of INB's banks shall not be consum- Based on the foregoing and other facts of record, mated before the thirtieth calendar day after the effecand subject to the commitments made by NBD in this tive date of this Order, and the acquisition of INB's case, the Board has determined that the applications banks and nonbanking companies shall not be consumshould be, and hereby are, approved. This approval is mated later than three months after the effective date specifically conditioned on compliance by NBD with of this Order, unless such period is extended for good all of the commitments made in connection with these cause by the Board or by the Federal Reserve Bank of applications and with the conditions referenced in this Chicago, acting pursuant to delegated authority. Order. The determinations as to NBD's nonbanking By order of the Board of Governors, effective activities are also subject to all the conditions con- September 14, 1992. tained in the Board's Regulation Y, including those in sections 225.4(d) and 225.23(b)(3) (12 C.F.R. 225.4(d) Voting for this action: Chairman Greenspan and Governors Mullins, Angell, Kelley, LaWare, Lindsey, and Phillips. and 225.23(b)(3)), and to the Board's authority to require such modification or termination of the activ- JENNIFER J. JOHNSON ities of a holding company or any of its subsidiaries as Associate Secretary of the Board 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. Surviving Approval Bank Holding Company Acquired Thrift Bank(s) Date Banc One Corporation, Home Savings of Bank One Cincinnati, September 14, 1992 Columbus, Ohio America, F.S.B., N.A., Irwindale, California Cincinnati, Ohio CCNB Corporation, Parent Federal Savings CCNB Bank, N.A., August 28, 1992 Camp Hill, Pennsylvania Bank, Camp Hill, Lancaster, Pennsylvania Pennsylvania First Farmers & Merchants Cavalry Banking, F.S.B. First Farmers & September 4, 1992 Corporation, Murfreesboro, Merchants National Columbia, Tennessee Tennessee Bank of Columbia, Columbia, Tennessee NBSC Corporation, First Trident Savings and The National Bank of September 4, 1992 Sumter, South Carolina Loan Corporation, South Carolina, Charleston, Sumter, South South Carolina Carolina Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 873 Surviving Approval Bank Holding Company Acquired Thrift Bank(s) Date Old Kent Financial Corporation, Great Lakes Bancorp, Old Kent Bank and August 28, 1992 Grand Rapids, Michigan F.S.B., Trust Company, Ann Arbor, Michigan Grand Rapids, Michigan Peoples Bancshares, Inc., Bluebonnet Federal Peoples National August 31, 1992 Belton, Texas Savings Bank, F.S.B., Bank, Dallas, Texas Belton, Texas Peoples Savings, Inc., Overland Park Savings Peoples, Inc., September 4, 1992 Ottawa, Kansas and Loan Association, Ottawa, Kansas Overland Park, Kansas 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 FirstBank Holding Company Employee FirstBank Holding Company of September 25, 1992 Stock Ownership Plan, Colorado, Lake wood, Colorado Lake wood, Colorado First Nebraska Bancs, Inc. Torrington National Company, September 30, 1992 Sidney, Nebraska Torrington, Wyoming Lisco State Company, First Nebraska Bancs, Inc. September 30, 1992 Lisco, Nebraska Sidney, Nebraska Section 4 Effective Applicant(s) Bank(s) Date Lisco State Company, Dalton Insurance Agency, September 30, 1992 Lisco, Nebraska Dalton, Nebraska SouthTrust Corporation, Carolina Financial Corporation, September 22, 1992 Birmingham, Alabama Charleston, South Carolina SouthTrust of South Carolina, Inc., Charleston, South Carolina Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

874 Federal Reserve Bulletin • November 1992 APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Section 3 Reserve Effective Applicant(s) Bank(s) Bank Dale Bailey Financial Corporation, M. S. Bailey & Son, Richmond September 3, 1992 Clinton, South Carolina Bankers, Clinton, South Carolina Bank Corporation of Georgia, First South Bank of Ben Atlanta September 4, 1992 Macon, Georgia Hill County, N.A., Fitzgerald, Georgia First South Bank of Jones County, N.A., Gray, Georgia First South Bank of Coweta County, N.A., Newnan, Georgia Citizens National Bancorp, Inc. Citizens National St. Louis August 27, 1992 Springfield, Missouri Bancshares, Inc., Springfield, Missouri Colorado National Bankshares, Regency Bancorporation, Kansas City September 10, 1992 Inc., Pueblo, Colorado Denver, Colorado Commonwealth Financial Commonwealth Bank and St. Louis September 3, 1992 Corporation, Trust Company, Louisville, Kentucky Louisville, Kentucky Community First Bankshares, Worthington Bancshares, Minneapolis September 2, 1992 Inc., Inc., Fargo, North Dakota Worthington, Minnesota Firstbank of Illinois Co., First Highland Corp., Chicago September 4, 1992 Springfield, Illinois Highland, Illinois First National Bancorp, First Citizens Bancorp of Atlanta September 16, 1992 Gainesville, Georgia Cherokee County, Inc., Ball Ground, Georgia FSB Bankshares, Inc., The Fowler State Bank, Kansas City September 18, 1992 Fowler, Kansas Fowler, Kansas Guaranty Development Interwest Acquisition Minneapolis September 18, 1992 Company, Bank, Livingston, Montana Livingston, Montana Independent Bankshares First Independent Bank, Atlanta September 18, 1992 Corporation, Gallatin, Tennessee Gallatin, Tennessee Jones Bancorp, Inc., G.W. Jones Exchange Chicago September 9, 1992 Marcellus, Michigan Bank, Marcellus, Michigan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 875 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date LoLyn Financial Corporation, Community Bank of Kansas City September 11, 1992 Lee's Summit, Missouri Ray more, Ray more, Missouri Merrill Merchants Bancshares, Merrill Merchants Bank, Boston September 15, 1992 Inc., Bangor, Maine Bangor, Maine North Bank Corporation, Farmers and Merchants Chicago August 26, 1992 Hale, Michigan State Bank of Hale, Hale, Michigan Norwest Corporation, Am-Can Investment, Inc., Minneapolis September 23, 1992 Minneapolis, Minnesota Moorhead, Minnesota Ohio Valley Banc Corp., The Ohio Valley Bank Cleveland September 4, 1992 Gallipolis, Ohio Company, Gallipolis, Ohio Pyramid Bancorp, Inc., Grafton State Bank, Chicago September 18, 1992 Grafton, Wisconsin Grafton, Wisconsin Regency Bancshares, Inc., Davidson Savings Bank, Richmond September 4, 1992 Hickory, North Carolina Inc., SSB, Lexington, North Carolina First Savings Bank, Inc., SSB, Hickory, North Carolina Southwest Bancshares, Inc., Caraway Bancshares, St. Louis September 14, 1992 Trumann, Arkansas Inc., Caraway, Arkansas U.K. Bancorporation, Inc., United Kentucky Bank of Cleveland September 18, 1992 Falmouth, Kentucky Pendleton County, Falmouth, Kentucky United Community Banks, Inc., Mountain Bank of Atlanta August 28, 1992 Blairsville, Georgia Georgia, Hiawassee, Georgia Wellington Delaware Financial Wellington State Bank, Dallas September 10, 1992 Corporation, Wellington, Texas Dover, Delaware Western Bancshares, Inc., Coahoma State Bank, Dallas September 23, 1992 Van Horn, Texas Coahoma, Texas Wilson Bank Holding Company, Wilson Bank & Trust, Atlanta September 17, 1992 Lebanon, Tennessee Lebanon, Tennessee WSB Bancshares, Inc., Wellington Delaware Dallas September 10, 1992 Wellington, Texas Financial Corporation, Dover, Delaware Wellington State Bank, Wellington, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

876 Federal Reserve Bulletin • November 1992 Section 4 Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date Brenton Banks, Inc., Ames Financial Chicago September 1, 1992 Des Moines, Iowa Corporation, Ames, Iowa Centura Banks, Inc., Orange Federal Savings Richmond September 24, 1992 Rocky Mount, North Carolina and Loan Association, Chapel Hill, North Carolina Denmark Bancshares, Inc., Denmark State Bank, Chicago September 18, 1992 Denmark, Wisconsin Denmark, Wisconsin Otto Bremer Foundation and American States Minneapolis September 24, 1992 Bremer Financial Corporation, Insurance Company, St. Paul, Minnesota Minneapolis, Minnesota PNC Financial Corp., Flagship Financial Cleveland September 3, 1992 Pittsburgh, Pennsylvania Corporation, Jenkintown, Pennsylvania Sections 3 and 4 Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date Banc One Corporation, Affiliated Bankshares of Cleveland September 21, 1992 Columbus, Ohio Colorado, Inc., Banc One Colorado Corporation, Denver, Colorado Columbus, Ohio Norwest Corporation, United Bancshares, Inc., Minneapolis August 28, 1992 Minneapolis, Minnesota Lincoln, Nebraska Vistar Financial, Inc., Lincoln, Nebraska PNC Financial Corporation, PNC Bancorp, Inc., Cleveland August 28, 1992 Pittsburgh, Pennsylvania Wilmington, Delaware CCNB Corporation, Camp Hill, Pennsylvania APPLICATIONS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Reserve Effective Applicant(s) Bank(s) Bank Dale Bank One, Champaign-Urbana, Bank One, Monticello, Chicago September 3, 1992 Champaign, Illinois Monticello, Illinois DeMotte State Bank, Ameritrust National Chicago September 2, 1992 Demotte, Indiana Bank, Elkhart, Indiana Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 877 PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits Greenberg v. Board of Governors, No. 91-4200 (2d against the Federal Reserve Banks in which the Board Cir., filed December 4, 1991). Petition for review of of Governors is not named a party. orders of prohibition issued by the Board on October 28, 1991. The Board's orders were affirmed on Castro v. Board of Governors, No. 92-1764 (D. Dis- June 19, 1992. trict of Columbia, filed July 29, 1992). Freedom of First Interstate BancSystem of Montana, Inc. v. Information Act case. Board of Governors, No. 91-1525 (D.C. Cir., filed Board of Governors v. bin Mahfouz, No. 92-CIV-5096 November 1, 1991). Petition for review of Board's (S.D. New York, filed July 8,1992). Action to freeze order denying on Community Reinvestment Act assets of individual pending administrative adjudigrounds the petitioner's application under section 3 cation of civil money penalty assessment by the of the Bank Holding Company Act to merge with Board. On July 8, 1992, the court issued a temporary Commerce BancShares of Wyoming, Inc. On Aurestraining order restraining the transfer or disposigust 19, 1992, the court granted petitioner First tion of the individual's assets. On July 23, the court Interstate's motion for a stay of the proceedings. denied the individual's motion for expedited discovery on the ground that, as a fugitive from a criminal Board of Governors v. Kemal Shoaib, No. CV 91-5152 indictment, he is disentitled from seeking relief from (C.D. California, filed September 24, 1991). Action the court. to freeze assets of individual pending administrative adjudication of civil money penalty assessment by Zemel v. Board of Governors, No. 92-1057 (D. District the Board. On October 15, 1991, the court issued a of Columbia, filed May 4, 1992). Age Discrimination preliminary injunction restraining the transfer or in Employment Act case. disposition of the individual's assets. Fields v. Board of Governors, No. 92-3920 (6th Cir., filed September 14, 1992). Federal Tort Claims Act Board of Governors v. Ghaith R. Pharaon, No. 91complaint alleging misrepresentation during applica- CIV-6250 (S.D. New York, filed September 17, tion process. The district court for the Northern 1991). Action to freeze assets of individual pending District of Ohio granted the Board's motion to administrative adjudication of civil money penalty dismiss on August 10, 1992. On September 14, 1992, assessment by the Board. On September 17, 1991, the plaintiff filed a notice of appeal. the court issued an order temporarily restraining the transfer or disposition of the individual's assets. State of Idaho, Department of Finance v. Board of Governors, No. 92-70107 (9th Cir., filed Feb- In re Smouha, No. 91-B-13569 (Bkr. S.D. New York, ruary 24, 1992). Petition for review of Board order filed August 2, 1991). Ancillary proceeding under returning without action a bank holding company the U.S. Bankruptcy Code brought by provisional application to relocate its subsidiary bank from liquidators of BCCI Holdings (Luxembourg) S.A. Washington to Idaho. The Board's brief was filed on and affiliated companies. On August 15, 1991, the June 29, 1992. Oral argument is scheduled for Octo- bankruptcy court issued a temporary restraining ber 6, 1992. order staying certain judicial and administrative In re Subpoena Served on the Board of Governors, actions, which has been continued by consent. Nos. 91-5427, 91-5428 (D.C. Cir., filed Dec- Fields v. Board of Governors, No. 3:91CV069 (N.D. ember 27, 1991). Appeal of order of district court, Ohio, filed February 5, 1991). Appeal of denial of dated December 3, 1991, requiring the Board and request for information under the Freedom of Inforthe Office of the Comptroller of the Currency to mation Act. The Board's motion for summary judgproduce confidential examination material to a priment was granted in part and its motion to dismiss vate litigant. On June 26, 1992, the court of appeals was denied on June 23, 1992. affirmed the district court order in part, but held that the bank examination privilege was not waived by MCorp v. Board of Governors, No. CA3-88-2693 the agencies' provision of examination materials to (N.D. Texas, filed October 10, 1988). Application the examined institution, and remanded for further for injunction to set aside temporary cease and consideration of the privilege issue. desist orders. The case is pending. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

878 Federal Reserve Bulletin • November 1992 FINAL ENFORCEMENT ORDERS ISSUED BY THE between the Federal Reserve Bank of San Francisco BOARD OF GOVERNORS and the CivicBank of Commerce, Oakland, California. Dellinger & Company First State Bancorp Los Angeles, California Howell, New Jersey The Federal Reserve Board announced on September 15, 1992, the issuance of an Order of Assessment The Federal Reserve Board announced on Septemof a Civil Money Penalty against Dellinger & Com- ber 21, 1992, the execution of a Written Agreement pany, Los Angeles, California, a public accounting between the Federal Reserve Bank of New York and firm. First State Bancorp, Howell, New Jersey. National Bank of Pakistan Karachi, Pakistan Ken-Caryl Investment Company Littleton, Colorado The Federal Reserve Board announced on September 28, 1992, the issuance with the Federal Deposit The Federal Reserve Board announced on Septem- Insurance Corporation and the Commissioner of ber 21, 1992, the execution of a Written Agreement Banks and Trust Companies of the State of Illinois of between the Federal Reserve Bank of Kansas City and a Cease and Desist Order against the National Bank of Ken-Caryl Investment Company, Littleton, Colorado. Pakistan, Karachi, Pakistan, and the National Bank of Pakistan's branch in Chicago. The Federal Reserve Board also issued an Order of Assessment of a Civil Mount Vernon Bancshares, Inc. Money Penalty against the National Bank of Pakistan. Mount Vernon, Kentucky The Federal Reserve Board announced on Septem- WRITTEN AGREEMENTS APPROVED BY FEDERAL ber 1, 1992, the execution of a Written Agreement RESERVE BANKS among the Federal Reserve Bank of Cleveland, the Department of Financial Institutions of the Common- BankSouth Corporation wealth of Kentucky and Mount Vernon Bancshares, Lawton, Oklahoma Inc., Mount Vernon, Kentucky. The Federal Reserve Board announced on September 28, 1992, the execution of a Written Agreement by The National Commercial Bank and among BankSouth Corporation, Lawton, Okla- Saudi Arabia homa, First Chattanooga Corporation, Lawton, Oklahoma, and the Federal Reserve Bank of Kansas City. The Federal Reserve Board announced on Septem- Citizens Bank ber 16, 1992, the execution of a Written Agreement Lawton, Oklahoma between The National Commercial Bank, Saudi Arabia, and the Board of Governors of the Federal Reserve System. The Federal Reserve Board announced on September 28, 1992, the execution of a Written Agreement by and among the Citizens Bank, Lawton, Oklahoma, the Paonia Financial Services, Inc. subsidiary bank of BankSouth Corporation, the Okla- Paonia, Colorado homa State Banking Department, and the Federal Reserve Bank of Kansas City. The Federal Reserve Board announced on Septem- CivicBank of Commerce ber 29, 1992, the execution of a Written Agreement Oakland, California between the Federal Reserve Bank of Kansas City and Paonia Financial Services, Inc., Paonia, Colorado, The Federal Reserve Board announced on Septem- and George J. Murphy, Jr., an official of Paonia ber 29, 1992, the execution of a Written Agreement Financial Services, Inc. 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 A22 Branches and agencies of foreign banks Domestic Financial Statistics MONEY STOCK AND BANK CREDIT FINANCIAL MARKETS A4 Reserves, money stock, liquid assets, and debt A23 Commercial paper and bankers dollar measures acceptances outstanding A5 Reserves of depository institutions, Reserve Bank A23 Prime rate charged by banks on short-term credit business loans A6 Reserves and borrowings—Depository A24 Interest rates—money and capital markets institutions A25 Stock market—Selected statistics A7 Selected borrowings in immediately available A26 Selected financial institutions—Selected assets funds—Large member banks and liabilities POLICY INSTRUMENTS FEDERAL FINANCE A8 Federal Reserve Bank interest rates A26 Federal fiscal and financing operations A9 Reserve requirements of depository institutions A27 U.S. budget receipts and outlays A10 Federal Reserve open market transactions A28 Federal debt subject to statutory limitation A28 Gross public debt of U.S. Treasury—Types and ownership FEDERAL RESERVE BANKS A29 U.S. government securities dealers—Transactions All Condition and Federal Reserve note statements A30 U.S. government securities dealers—Positions A12 Maturity distribution of loan and security and financing holdings A31 Federal and federally sponsored credit agencies—Debt outstanding MONETARY AND CREDIT AGGREGATES A13 Aggregate reserves of depository institutions SECURITIES MARKETS AND and monetary base CORPORATE FINANCE A14 Money stock, liquid assets, and debt measures A16 Bank debits and deposit turnover A32 New security issues—State and local A17 Loans and securities—All commercial banks governments and corporations A33 Open-end investment companies—Net sales and asset position COMMERCIAL BANKING INSTITUTIONS A33 Corporate profits and their distribution A33 Total nonfarm business expenditures on new A18 Major nondeposit funds plant and equipment A19 Assets and liabilities, last-Wednesday-of-month A34 Domestic finance companies—Assets and series liabilities and business credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • November 1992 Domestic Financial Statistics—Continued A57 Selected U.S. liabilities to foreign official institutions REAL ESTATE A3 5 Mortgage markets REPORTED BY BANKS A36 Mortgage debt outstanding IN THE UNITED STATES A57 Liabilities to and claims on foreigners CONSUMER INSTALLMENT CREDIT A58 Liabilities to foreigners A60 Banks' own claims on foreigners A37 Total outstanding and net change A61 Banks' own and domestic customers' claims on A3 8 Terms foreigners A61 Banks' own claims on unaffiliated foreigners A62 Claims on foreign countries—Combined FLOW OF FUNDS domestic offices and foreign branches A39 Funds raised in U.S. credit markets A41 Direct and indirect sources of funds to credit markets REPORTED BY NONBANKING BUSINESS A42 Summary of credit market debt outstanding ENTERPRISES IN THE UNITED STATES A43 Summary of credit market claims, by holder A63 Liabilities to unaffiliated foreigners A64 Claims on unaffiliated foreigners Domestic Nonfinancial Statistics SECURITIES HOLDINGS AND TRANSACTIONS SELECTED MEASURES A65 Foreign transactions in securities A44 Nonfinancial business activity—Selected A66 Marketable U.S. Treasury bonds and measures notes—Foreign transactions A45 Labor force, employment, and unemployment A46 Output, capacity, and capacity utilization A47 Industrial production—Indexes and gross value INTEREST AND EXCHANGE RATES A49 Housing and construction A50 Consumer and producer prices A67 Discount rates of foreign central banks A51 Gross domestic product and income A67 Foreign short-term interest rates A52 Personal income and saving A68 Foreign exchange rates A69 Guide to Statistical Releases and International Statistics Special Tables SUMMARY STATISTICS SPECIAL TABLES A53 U.S. international transactions—Summary A54 U.S. foreign trade A70 Assets and liabilities of commercial banks, A54 U.S. reserve assets June 30, 1992 A54 Foreign official assets held at Federal Reserve A76 Terms of lending at commercial banks, Banks August 1992 A55 Foreign branches of U.S. banks—Balance A80 Assets and liabilities of U.S. branches and agencies sheet data of foreign banks, June 30, 1992 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS c Corrected GNMA Government National Mortgage Association e Estimated GDP Gross domestic product n.a. Not available HUD Department of Housing and Urban n.e.c. Not elsewhere classified Development P Preliminary IMF International Monetary Fund r Revised (Notation appears on column heading IO Interest only when about half of the figures in that column IPCs Individuals, partnerships, and corporations are changed.) IRA Individual retirement account * Amounts insignificant in terms of the last decimal MMDA Money market deposit account place shown in the table (for example, less than NOW Negotiable order of withdrawal 500,000 when the smallest unit given is millions) OCD Other checkable deposit 0 Calculated to be zero OPEC Organization of Petroleum Exporting Countries Cell not applicable OTS Office of Thrift Supervision ATS Automatic transfer service PO Principal only CD Certificate of deposit REIT Real estate investment trust CMO Collateralized mortgage obligation REMIC Real estate mortgage investment conduit FFB Federal Financing Bank RP Repurchase agreement FHA Federal Housing Administration RTC Resolution Trust Corporation FHLBB Federal Home Loan Bank Board SAIF Savings Association Insurance Fund FHLMC Federal Home Loan Mortgage Corporation SCO Securitized credit obligation FmHA Farmers Home Administration SDR Special drawing right FNMA Federal National Mortgage Association SIC Standard Industrial Classification FSLIC Federal Savings and Loan Insurance Corporation SMSA Standard metropolitan statistical area G-7 Group of Seven VA Veterans Administration G-10 Group of Ten GENERAL INFORMATION In many of the tables, components do not sum to totals because include not fully guaranteed issues) as well as direct obligaof rounding. 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 Nonfinancial Statistics • November 1992 1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 1991 1992 1992 MMoonneettaarryy aanndd ccrreeddiitt aaggggrreeggaattee Q3 Q4 Q1 Q2 Apr. May June July Aug. Reserves of depository institutions2 1 Total 8.3 15.2 23.4 14.9 13.0 12.1 -6.3 6.2 20.3 2 Required 9.0 15.4 23.5 15.4 10.5 15.8 -4.3 5.0 21.4 3 Nonborrowed 4.7 20.0 24.0 14.8 13.0 10.5 -8.1 4.9r 21.2 4 Monetary base 6.6 8.2 9.2 7.1 7.4 7.7 3.9 9.5 16.7 Concepts of money, liquid assets, and debt4 5 Ml 7.5 11.1 16.5 9.9 4.9 14.6 -3.1 11.3r 16.0 6 M2 .7 2.4 4.3r .1 -1.9 ,6r -3.1 -1.0 3.0 7 M3 -1.3 1.0 2.3 -1.5 -4.0 .0 -3.3 -i.r 2.6 8 L .8 .2 1.5 .5 -2.1r -1.8r 3.2 -.6 n.a. 9 Debt 4.5 4.2 3.8 5.3 5.3 5.2 5.6r 5.0 n.a. Nontrgnsaction components 10 InM25 .... -1.6 -.6 .1 -3.5r -4.4 -4.6 -3.2r -5.T -2.0 11 In M3 only6 -9.9 -5.4 -7.5 -9.1 -14.1 -3.1 -4.1 — 1.5' .7 Time and savings deposits Commercial banks 12 Savings, including MMDAs 13.2 16.0 19.1 12.0 13.8 8.0 A.SF 9.3r 13.6 13 Smalltime7. 1.5 -8.4 -18.9 -13.2 -6.7 -16.7 -14.0 -17.0 -19.0 14 Large time8'9 -8.0 -14.4 -18.2 -14.8 -17.5 -8.0 -15.3 -23.6 -15.4 Thrift institutions 15 Savings, including MMDAs 9.8 10.2 22.4 18.8 15.8 18.8 5.2 5.2 8.9 16 Smalltime7. -24.2 -22.5 -24.3r -29.4r -39.9r -24.3r -17.8r -19.6r -21.7 17 Large time ' -40.3 -36.5 -29.7 -36.7 -36.3 -40.7 -25.2 -5.2 -22.4 Money market mutual funds 18 General purpose and broker-dealer -4.7 -4.0 1.0 -7.2 -13.1 3.0 -5.7 -11.9 -6.9 19 Institution-only 11.4 37.2 26.9 20.0 25.3 35.5 30.2 48.1 54.9 Debt components4 20 Federal 13.9 12.3 8.2 13.1 13.1 12.7 15.1 12.0 n.a. 21 Nonfederal 1.6 1.6 2.3 2.7 2.7 2.6r 2.3r 2.6 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 daily figures Weekly averages of daily figures for week ending Factor 1992 1992 June July Aug. July 15 July 22 July 29 Aug. 5 Aug. 12 Aug. 19 Aug. 26 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 310,961 313,136 315,619 312,809" 313,811r 311,825r 316,428 314,842 317,051 313,098 U.S. government securities 2 Bought outright—System account 274,177 274,511 276,117 275,054 275,186 274,415 275,051 275,544 276,050 276,435 3 Held under repurchase agreements 706 772 1,699 0 1,061 0 2,920 818 2,698 0 Federal agency obligations 4 Bought outright 5,717 5,677 5,603 5,701 5,683 5,625 5,619 5,612 5,612 5,600 5 Held under repurchase agreements 33 7 26 0 27 0 8 22 76 0 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 75 87 28 24 9 15 21 11 45 35 8 Seasonal credit 149 202 224 190 208 222 222 218 223 232 9 Extended credit 0 0 0 0 0 0 0 0 0 0 10 Float 387 586r 657 418r 285r 389 569 387 807 718 11 Other Federal Reserve assets 29,716r 31,294r 31,265 31,423 31,351r 31,159" 32,018 32,228 31,541 30,078 12 Gold stock 11,058 11,060 11,060 11,060 11,060 11,059 11,059 11,060 11,059 11,060 13 Special drawing rights certificate account .. 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 14 Treasury currency outstanding 21,236r 21,272r 21,307 21,268r 21,274r 21,280r 21,286 21,296 21,307 21,317 ABSORBING RESERVE FUNDS 15 Currency in circulation 310,189r 313,739r 315,798 314,448r 313,908r 313,445r 314,756 316,227 316,317 315,353 16 Treasury cash holdings 639 594 553 602 586 583 575 560 551 542 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 6,904 5,666 5,729 5,245 5,231 5,562 6,707 5,445 5,291 5,620 18 Foreign 216 236 211 209 264 226 250 1% 212 195 19 Service-related balances and adjustments 5,282 5,534 5,612 5,404 5,933 5,445r 5,473 5,621 5,592 5,611 20 Other 259 233 267 236 233 236 233 260 294 268 21 Other Federal Reserve liabilities and capital 8,361 8,493 8,496 8,289 8,185 8,178 8,776 8,791 8,269 8,184 22 Reserve balances with Federal Reserve Banks 21,423 20,991 21,338 20,722r 21,822r 20,508r 22,021 20,116 22,910 19,721 End-of-month figures Wednesday figures 1992 1992 June July Aug. July 15 July 22 July 29 Aug. 5 Aug. 12 Aug. 19 Aug. 26 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 314,760" 313,930" 319,416 314,406r 316,943r 311,903r 324,535 314,172 314,923 313,094 U.S. government securities 2 Bought outright—System account 276,883 275,969 274,537 276,422 277,525 274,554 274,645 275,476 277,500 276,823 3 Held under repurchase agreements 0 0 7,616 0 1,840 0 10,682 0 582 0 Federal agency obligations 4 Bought outright 5,710 5,625 5,571 5,690 5,675 5,625 5,612 5,612 5,612 5,571 5 Held under repurchase agreements 0 0 53 0 63 0 55 0 0 0 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 1,173 29 28 12 17 14 10 14 70 46 8 Seasonal credit 185 227 216 198 214 229 218 221 230 229 9 Extended credit 1 0 0 0 0 0 0 0 0 0 10 Float -166 305r 198 763r 484" 128 410 689 518 483 11 Other Federal Reserve assets 30,974r 31,776r 31,198 31,322 31,124 31,353r 32,904 32,161 30,412 29,941 12 Gold stock 11,060 11,059 11,059 11,060 11,059 11,059 11,059 11,060 11,059 11,059 13 Special drawing rights certificate account .. 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 14 Treasury currency outstanding 21,257r 21,286r 21,327 21,268r 21,274r 21,280r 21,286 21,296 21,307 21,317 ABSORBING RESERVE FUNDS 15 Currency in circulation 310,935r 314,338r 316,166 314,441r 313,704r 313,852r 315,695 316,605 316,133 315,733 16 Treasury cash holdings 612 578 539 586 584 578 562 553 542 539 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 13,630 6,923 6,232 4,708 5,041 5,365 7,628 4,963 4,412 5,679 18 Foreign 219 264 297 207 374 206 179 141 253 224 19 Service-related balances and adjustments 5,330 5,473r 5,768 5,404 5,933 5,445r 5,473 5,621 5,592 5,611 20 Other 249 220 254 244 218 219 245 265 321 283 21 Other Federal Reserve liabilities and capital 9,416r 8,846 9,275 8,059 8,003 8,047 8,718 88,,111177 8,086 8,010 22 Reserve balances with Federal Reserve Banks 16,705 19,65F 23,290 23,103r 25,438r 20,549" 28,399 20,280 21,967 19,409 1. For amounts of cash held as reserves, see table 1.12. 3. Excludes required clearing balances and adjustments to compensate for 2. Includes securities loaned—fully guaranteed by U.S. government securities float. pledged with Federal Reserve Banks—and excludes any securities sold and scheduled to be bought back under matched sale-purchase transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Nonfinancial Statistics • November 1992 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Prorated monthly averages of biweekly averages RReesseerrvvee ccllaassssiiffiiccaattiioonn 1989 1990 1991 1992 Dec. Dec. Dec. Feb. Mar. Apr. May June July Aug. 1 Reserve balances with Reserve Banks 35,436 30,237 26,659 24,918 28,057 22,655 21,071 21,223 21,206r 21,275 2 Total vault cash 29,828 31,786 32,513 34,218 31,647 31,071 31,197 31,729 32,145 32,457 3 Applied vault cash 27,374 28,884 28,872 30,320 28,225 27,800 27,754 28,273 28,617 28,890 4 Surplus vault cash 2,454 2,903 3,641 3,897 3,422 3,271 3,442 3,456 3,528 3,567 5 Total reserves6 62,810 59,120 55,532 55,238 56,282 50,455 48,825 49,496 49,823r 50,165 6 Required reserves 61,887 57,456 54,553 54,174 55,254 49,318 47,825 48,584 48,857 49,229 7 Excess reserve balances at Reserve Banks ... 923 1,664 979 1,065 1,028 1,137 1,000 913 965r 937 8 Total borrowings at Reserve Banks 265 326 192 77 91 90 155 229 284 251 9 Seasonal borrowings 84 76 38 22 32 47 98 149 203 223 10 Extended credit9 20 23 1 2 2 2 0 0 0 0 Biweekly averages of daily figures for weeks ending 1992 Apr. 29 May 13 May 27 June 10 June 24 July 8 July 22 Aug. 5r Aug. 19 Sept. 2 1 Reserve balances with Reserve Banks 22,137 21,746 20,356 21,374 21,205 21,014 21,277 21,264 21,515 21,000 2 Total vault cash 31,643 30,346 32,069 30,909 31,946 32,589 32,233 31,613 32,687 32,541 3 Applied vault cash4, 28,225 27,091 28,418 27,591 28,487 28,910 28,779 28,105 29,166 28,8% 4 Surplus vault cash 3,418 3,256 3,651 3,318 3,459 3,679 3,455 3,508 3,521 3,645 5 Total reserves6 50,362 48,836 48,774 48,965 49,692 49,924 50,056 49,369 50,681 49,896 6 Required reserves •.. 49,150 48,209 47,277 48,492 48,521 48,884 49,106 48,447 49,856 48,823 7 Excess reserve balances at Reserve Banks ... 1,212 628 1,497 474 1,171 1,041 950 922 825 1,073 8 Total borrowings at Reserve Banks 118 153 157 152 188 455 215 241 249 258 9 Seasonal borrowings 57 75 113 125 150 187 199 222 221 226 10 Extended credit9 4 0 0 0 0 1 0 0 0 0 1. Data in this table also appear in the Board's H.3 (502) weekly statistical 5. Total vault cash (line 2) less applied vault cash (line 3). release. For ordering address, see inside front cover. 6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash 2. Excludes required clearing balances and adjustments to compensate for float (line 3). and includes other off-balance-sheet "as-of' adjustments. 7. Total reserves (line 5) less required reserves (line 6). 3. Total "lagged" vault cash held by depository institutions subject to reserve 8. Also includes adjustment credit. requirements. Dates refer to the maintenance periods during which the vault cash 9. Consists of borrowing at the discount window under the terms and condican be used to satisfy reserve requirements. Under contemporaneous reserve tions established for the extended credit program to help depository institutions requirements, maintenance periods end thirty days after the lagged computation deal with sustained liquidity pressures. Because there is not the same need to periods during which the balances are held. repay such borrowing promptly as there is with traditional short-term adjustment 4. All vault cash held during the lagged computation period by "bound" credit, the money market impact of extended credit is similar to that of institutions (that is, those whose required reserves exceed their vault cash) plus nonborrowed reserves. the amount of vault cash applied during the maintenance period by "nonbound" institutions (that is, those whose vault cash exceeds their required reserves) to satisfy current reserve requirements. 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 June 1 June 8 June 15 June 22 June 29 July 6 July 13 July 20 July 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 78,200 83,382 81,370 75,529 69,203 74,178 74,503 70,973 69,234 2 For all other maturities 1166,,665500 16,718 16,837 16,753 16,565 19,118 16,208 15,230 14,941 From other depository institutions, foreign banks and official institutions, and U.S. government agencies 3 For one day or under continuing contract 19,084 16,666 18,482 17,430 17,993 17,450 18,725 18,371 21,257 4 For all other maturities 20,606 19,451 19,159 18,682 18,944 19,502 19,694 19,555 20,271 Repurchase agreements on U.S. government and federal agency securities Brokers and nonbank dealers in securities 5 For one day or under continuing contract 9,065 10,372 10,120 10,607 10,042 9,566 10,969 11,284 11,841 6 For all other maturities 17,176 16,448 17,150 16,764 14,628 14,051 13,649 12,812 11,875 All other customers 7 For one day or under continuing contract 23,623 22,960 23,674 23,811 24,559 20,589 23,030 22,644 24,601 8 For all other maturities 12,714 12,116 12,008 12,655 13,030 15,054 12,589 12,682 12,770 MEMO: Federal funds loans and resale agreements in immediately available funds in maturities of one day or under continuing contract 9 To commercial banks in the United States 49,117 48,667 46,630 44,892 44,267 48,071 42,555 43,544 40,404 10 To all other specified customers 16,514 18,902 22,520 21,146 18,872 22,098 21,113 17,878 17,881 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 • November 1992 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Adjustment credit1 Seasonal credit2 Extended credit3 Federal Reserve Bank 9/2 O 8 n /9 2 Effective date Previous rate 9/2 O 8 n /9 2 Effective date Previous rate 9/2 O 8 n /9 2 Effective date Previous rate Boston 7/2/92 3.5 3.15 9/17/92 3.30 3.65 9/17/92 3.80 New York ... 7/2/92 9/17/92 9/17/92 Philadelphia.. 7/2/92 9/17/92 9/17/92 Cleveland 7/6/92 9/17/92 9/17/92 Richmond 7/2/92 9/17/92 9/17/92 Atlanta 7/2/92 9/17/92 9/17/92 Chicago 7/2/92 9/17/92 9/17/92 St. Louis 7/7/92 9/17/92 9/17/92 Minneapolis.. 7/2/92 9/17/92 9/17/92 Kansas City.. 7/2/92 9/17/92 9/17/92 Dallas 7/2/92 9/17/92 9/17/92 San Francisco 7/2/92 3.5 3.15 9/17/92 9/17/92 3.80 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 date 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 1981—May 5 13-14 14 1986—Aug. 21 5.5-6 5.5 8 14 14 22 5.5 5.5 1978--Jan. 9 .. 6-6.5 6.5 Nov. 2 13-14 13 20 .. 6.5 6.5 6 13 13 1987—Sept. 4 5.5-6 6 May 11 .. 6.5-7 7 Dec. 4 12 12 11 6 6 12 .. 7 7 July 3 .. 7-7.25 7.25 1982—July 20 11.5-12 11.5 1988—Aug. 9 6-6.5 6.5 10 .. 7.25 7.25 23 11.5 11.5 11 Aug. 21 .. 7.75 7.75 Aug. 2 11-11.5 11 Sept. 22 .. 8 8 3 11 11 1989—Feb. 24 6.5-7 7 Oct. 16 .. 8-8.5 8.5 16 10.5 10.5 27 7 7 20 .. 8.5 8.5 27 10-10.5 10 Nov. 1 .. 8.5-9.5 9.5 30 10 10 1990—Dec. 19 6.5 6.5 3 .. 9.5 9.5 Oct. 12 9.5-10 9.5 13 9.5 9.5 1991—Feb. 1 6.65 6 1979--July 20 .. 10 10 Nov. 22 9-9.5 9 4 6 6 Aug. 17 .. 10-10.5 10.5 26 9 9 Apr. 30 5.5-6 5.5 20 .. 10.5 10.5 Dec. 14 8.5-9 9 May 2 5.5 5.5 Sept. 19 .. 10.5-11 11 15 8.5-9 8.5 Sept. 13 5-5.5 5 21 .. U 11 17 8.5 8.5 Sept. 17 5 5 Oct. 8 .. 11-12 12 Nov. 6 4.5-5 4.5 10 .. 12 12 1984—Apr. 9 8.5-9 9 7 4.5 4.5 13 9 9 Dec. 20 3.5-4.5 3.5 1980--Feb. 15 .. 12-13 13 Nov. 21 8.5-9 8.5 24 3.5 3.5 19 .. 13 13 26 8.5 8.5 May 29 .. 12-13 13 Dec. 24 8 8 1992—July 2 3-3.5 3 30 .. 12 12 7 3 3 June 13 .. 11-12 11 1985—May 20 7.5-8 7.5 16 .. 11 11 24 7.5 7.5 29 .. 10 10 IInn eeffffeecctt SSeepptt.. 2288,, 11999922 3 3 July 28 .. 10-11 10 1986—Mar. 7 7-7.5 7 Sept. 26.. 11 11 10 7 7 Nov. 17 .. 12 12 Apr. 21 6.5-7 6.5 Dec. 5 .. 12-13 13 July 11 6 6 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 intrayearly 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 INSTITUTIONS1 Requirements TTyyppee ooff ddeeppoossiitt22 Percent of deposits Effective date Net transaction accounts3 1 $0 million-$42.2 million 33333 1111122222/////1111177777/////9999911111 2 More than $42.2 million4 1111100000 44444/////22222/////9999922222 00000 1111122222/////2222277777/////9999900000 00000 1111122222/////2222277777/////9999900000 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 IV2 years was reduced from 3 on an annual basis as of June 30. No corresponding adjustment is to be made in percent to 1 Vi 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 lVi 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 lVi 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 • November 1992 1.17 FEDERAL RESERVE OPEN MARKET TRANS ACTIONS1 Millions of dollars 1992 TTyyppee ooff ttrraannssaaccttiioonn 11998899 11999900 11999911 Jan. Feb. Mar. Apr. May June July U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 14,284 24,739 20,158 0 123 505 0 4,110 306 0 2 Gross sales 12,818 7,291 120 1,628 0 0 0 0 0 0 J Exchanges 231,211 241,086 277,314 26,750 24,435 21,674 27,526 24,275 22,392 27,755 4 Redemptions 12,730 4,400 1,000 1,600 0 0 0 45 0 0 Others within one year 5 Gross purchases 327 425 3,043 0 0 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 1,298 6,020 2,552 1,100 3,754 2,152 687 8 Exchanges -25,783 -27,424 -28,090 -989 -2,742 -2,512 -1,863 -5,225 -1,854 -1,669 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 1,027 1,425 0 0 2,278 0 11 Gross sales 490 200 0 0 0 0 0 0 0 0 12 Maturity shifts -25,534 -21,770 -21,211 -1,174 -6,020 -2,552 -877 -2,113 -3,447 -216 13 Exchanges 23,250 25,410 24,594 539 2,292 2,512 1,484 4,311 1,854 1,478 Five to ten years 14 Gross purchases 287 0 1,280 0 0 0 0 0 597 0 15 Gross sales 29 100 0 0 0 0 0 0 0 0 lb Maturity shifts -2,231 -2,186 -2,037 -124 0 0 -223 -346 0 -471 17 Exchanges 1,934 789 2,894 451 300 0 379 614 0 191 More than ten years 18 Gross purchases 284 0 375 0 0 0 0 0 655 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 0 300 0 0 All maturities 22 Gross purchases 16,617 25,414 31,439 0 1,150 1,930 0 4,310 3,836 0 23 Gross sales 13,337 7,591 120 1,628 0 0 0 0 0 0 24 Redemptions 13,230 4,400 1,000 1,600 0 0 0 45 0 0 Matched transactions 25 Gross sales 1,323,480 1,369,052 1,570,456 136,922 123,000 128,230 125,999 118,972 126,977 127,051 2b Gross purchases 1,326,542 1,363,434 1,571,534 136,282 124,654 126,673 128,149 117,524 129,216 126,137 Repurchase agreements2 27 Gross purchases 129,518 219,632 310,084 21,412 9,824 48,758 18,432 38,777 10,792 12,224 28 Gross sales 132,688 202,551 311,752 33,228 13,353 46,953 20,237 38,533 11,036 12,224 29 Net change in U.S. government securities -10,055 24,886 29,729 -15,684 -725 2,178 345 3,062 5,831 -914 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 85 0 0 49 115 40 85 Repurchase agreements2 33 Gross purchases 38,835 41,836 22,807 390 571 1,640 224 1,281 402 94 34 Gross sales 40,411 40,461 23,595 808 706 1,640 224 1,281 402 94 35 Net change in federal agency obligations -2,018 1,192 -1,085 -503 -135 0 -49 -115 -40 -85 36 Total net change in System Open Market Account -12,073 26,078 28,644 -16,186 -860 2,178 295 2,946 5,791 -1,000 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. acceptances in repurchase agreements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Banks All 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 1992 1992 July 29 Aug. 5 Aug. 12 Aug. 19 Aug. 26 June 30 July 31 Aug. 31 Consolidated condition statement ASSETS 1 Gold certificate account 11,059 11,059 11,060 11,059 11,059 11,060 11,059 11,059 2 Special drawing rights certificate account 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 3 Coin 478 480 488 490 495 482 477 499 Loans 4 To depository institutions 244 228 235 299 275 1,359 256 244 5 Other 0 0 0 0 0 0 0 0 6 Acceptances held under repurchase agreements 0 0 0 0 0 0 0 0 Federal agency obligations 7 Bought outright 5,625 5,612 5,612 5,612 5,571 5,710 5,625 5,571 8 Held under repurchase agreements 0 55 0 0 0 0 0 53 9 Total U.S. Treasury securities 274,554 285,327 275,476 278,082 276,823 276,883 275,969 282,153 10 Bought outright2 274,554 274,645 275,476 277,500 276,823 276,883 275,969 274,537 11 Bills 134,520 134,611 135,248 137,071 136,195 136,849 135,935 133,908 12 Notes 106,974 106,974 107,169 107,622 107,822 106,974 106,974 107,822 13 Bonds 33,059 33,059 33,059 32,807 32,807 33,059 33,059 32,807 14 Held under repurchase agreements 0 10,682 0 582 0 0 0 7,616 15 Total loans and securities 280,422 291,221 281,323 283,993 282,669 283,952 281,849 288,020 16 Items in process of collection 5,056r 6,394 5,323 5,536 4,757 7,216 4,428 2,267 17 Bank premises 1,028 1,014 1,015 1,017 1,016 1,026 1,014 1,015 Other assets 18 Denominated in foreign currencies3 24,105 24,735 24,643 24,540 23,860 24,487 24,734 24,742 19 All other4 6,209 7,193 6,589 4,896 5,472 5,518 6,113 5,472 20 Total assets 338,375 352,116 340,459 341,549 339,348 343,758 339,692 343,093 LIABILITIES 21 Federal Reserve notes 293,627 295,451 296,349 295,858 295,450 290,772 294,107 295,876 22 Total deposits 32,152 42,571 31,242 32,845 31,605 36,839 40,270 36,206 23 Depository institutions 26,362 34,519 25,872 27,859 25,419 22,740 25,302 29,422 24 U.S. Treasury—General account 5,365 7,628 4,963 4,412 5,679 13,630 6,923 6,232 25 Foreign—Official accounts 206 179 141 253 224 219 264 297 26 Other 219 245 265 321 283 249 220 254 27 Deferred credit items 4,550 5,376 4,750 4,759 4,283 6,732 -3,531 1,736 28 Other liabilities and accrued dividends 1,858 1,949 1,886 1,850 1,809 1,908 1,988 1,960 29 Total liabilities 332,187 345,347 334,227 335,314 333,147 336,250 332,834 335,778 CAPITAL ACCOUNTS 30 Capital paid in 2,930 2,941 2,941 2,951 2,952 2,832 2,931 2,957 31 Surplus 2,652 2,652 2,652 2,652 2,652 2,652 2,652 2,652 32 Other capital accounts 607 1,177 639 633 597 2,024 1,276 1,707 33 Total liabilities and capital accounts 338,375 352,116 340,459 341,549 339,348 343,758 339,692 343,093 34 MEMO: Marketable U.S. Treasury securities held in custody for foreign and international accounts 287,236 291,040 293,363 296,114 295,102 279,403 291,950 296,756 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to Bank) 361,148 360,680 360,003 359,235 358,593 362,337 360,881 357,972 36 LESS: Held by Federal Reserve Bank 67,521 65,230 63,653 63,377 63,143 71,565 66,774 62,096 37 Federal Reserve notes, net 293,627 295,451 296,349 295,858 295,450 290,772 294,107 295,876 Collateral held against notes, net: 38 Gold certificate account 11,059 11,059 11,060 11,059 11,059 11,060 11,059 11,059 39 Special drawing rights certificate account 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 40 Other eligible assets 0 0 0 0 0 0 0 0 41 U.S. Treasury and agency securities 272,550 274,373 275,272 274,781 274,373 269,694 273,030 274,799 42 Total collateral 293,627 295,451 296,349 295,858 295,450 290,772 294,107 295,876 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. 4. Includes special investment account at the Federal Reserve Bank of Chicago 2. Includes securities loaned—fully guaranteed by U.S. Treasury securities in Treasury bills maturing within ninety days. pledged with Federal Reserve Banks—and excludes securities sold and scheduled 5. Includes exchange-translation account reflecting the monthly revaluation at to be bought back under matched sale-purchase transactions. market exchange rates of foreign-exchange commitments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Nonfinancial Statistics • November 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 July 29 Aug. 5 Aug. 12 Aug. 19 Aug. 26 June 30 July 31 Aug. 31 1 Total loans 244 228 235 300 275 1,360 256 244 2 Within fifteen days 207 79 83 267 240 1,277 125 110 3 Sixteen days to ninety days 37 149 152 33 35 82 131 134 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 61 Within fifteen days 0 0 0 0 0 0 0 0 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 274,554 285,327 275,476 278,082 276,823 276,883 275,969 282,153 10 Within fifteen days2 13,849 24,273 17,805 17,812 15,599 9,835 9,389 13,027 11 Sixteen days to ninety days 66,856 63,726 60,185 63,494 67,199 70,373 68,366 70,616 12 Ninety-one days to one year 86,095 88,783 88,746 88,797 85,847 88,814 89,667 90,167 13 One year to five years 66,273 67,064 67,064 65,664 65,864 66,100 67,064 66,029 14 Five years to ten years 15,932 15,932 16,127 16,415 16,415 16,212 15,932 16,415 15 More than ten years 25,549 25,549 25,549 25,899 25,899 25,549 25,549 25,899 16 Total federal agency obligations 5,625 5,667 5,612 5,612 5,571 5,710 5,625 5,624 17 Within fifteen days2 98 55 87 417 410 222 98 463 18 Sixteen days to ninety days 836 950 863 533 453 721 836 573 19 Ninety-one days to one year 1,297 1,281 1,281 1,281 1,406 1,301 1,297 1,286 20 One year to five years 2,483 2,470 2,470 2,470 2,391 2,557 2,483 2,391 21 Five years to ten years 757 757 757 757 757 755 757 757 22 More than ten years 154 154 154 154 154 154 154 154 1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. 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 1992 1988 1989 1990 1991 IItteemm Dec. Dec. Dec. Dec. Jan. Feb. Mar. Apr. May June July Aug. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS5 1 Total reserves3 . 40.47 40.56 41.83 45.60 46.19 47.75 48.48 49.00 49.49 49.23 49.49 50.32 2 Nonborrowed reserves 38.75 40.29 41.51 45.41 45.95 47.67 48.38 48.91 49.34 49.00 49.20 50.07 3 Nonborrowed reserves plus extended credit . 40.00 40.31 41.53 45.41 45.95 47.67 48.39 48.91 49.34 49.00 49.20 50.07 4 Required reserves 39.42 39.64 40.17 44.62 45.18 46.68 47.45 47.86 48.49 48.32 48.52 49.39 5 Monetary base 256.97 267.77 293.29 317.25 319.70 323.41 324.51 326.50 328.58 329.64 332.26r 336.89 Not seasonally adjusted 6 Total reserves 41.65 41.77 43.07 46.97 47.35 46.85 47.69 50.01 48.62 49.25 49.52 49.82 7 Nonborrowed reserves 39.93 41.51 42.74 46.78 47.11 46.77 47.59 49.92 48.47 49.02 49.24 49.57 8 Nonborrowed reserves plus extended credit . 41.17 41.53 42.77 46.78 47.11 46.77 47.60 49.93 48.47 49.02 49.24 49.57 9 Required reserves 40.60 40.85 41.40 46.00 46.34 45.78 46.66 48.88 47.62 48.33 48.56 48.88 10 Monetary base9 260.41 271.18 296.68 321.06 320.43 320.38 322.69 327.45 328.37 330.93 334.09 336.62 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS 11 Total reserves11 63.75 62.81 59.12 55.53 55.81 55.24 56.28 50.45 48.82 49.50 49.82 50.17 12 Nonborrowed reserves .. 62.03 62.54 58.79 55.34 55.58 55.16 56.19 50.36 48.67 49.27 49.54 49.91 13 Nonborrowed reserves plus extended credit . 63.27 62.56 58.82 55.34 55.58 55.16 56.19 50.37 48.67 49.27 49.54 49.91 14 Required reserves 62.70 61.89 57.46 54.55 54.81 54.17 55.25 49.32 47.82 48.58 48.86 49.23 15 Monetary base , 283.00 292.55 313.70 333.61 333.09 333.19 335.82 332.69 333.79 336.43 339.87" 342.52 16 Excess reserves 3 1.05 .92 1.66 .98 1.00 1.06 1.03 1.14 1.00 .91 .97" .94 17 Borrowings from the Federal Reserve 1.72 .27 .33 .19 .23 .08 .09 .09 .15 .23 .28 .25 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 1) less total borrowings of depository and the amount applied to satisfy current reserve requirements. institutions from the Federal Reserve (line 17). 10. Reflects actual reserve requirements, including those on nondeposit liabil- 5. Extended credit consists of borrowing at the discount window under ities, with no adjustments to eliminate the effects of discontinuities associated the terms and conditions established for the extended credit program to help with changes in reserve requirements. depository institutions deal with sustained liquidity pressures. Because there is 11. Reserve balances with Federal Reserve Banks plus vault cash used to not the same need to repay such borrowing promptly as there is with traditional satisfy reserve requirements. short-term adjustment credit, the money market impact of extended credit is 12. The monetary base, not break-adjusted and not seasonally adjusted, similar to that of nonborrowed reserves. consists of (1) total reserves (line 11), plus (2) required clearing balances and 6. The seasonally adjusted, break-adjusted monetary base consists of (1) adjustments to compensate for float at Federal Reserve Banks, plus (3) the seasonally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally currency component of the money stock, plus (4) (for all quarterly reporters on adjusted currency component of the money stock, plus (3) (for all quarterly the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all reporters on the "Report of Transaction Accounts, Other Deposits and Vault those weekly reporters whose vault cash exceeds their required reserves) the Cash" and for all those weekly reporters whose vault cash exceeds their required difference between current vault cash and the amount applied to satisfy current reserves) the seasonally adjusted, break-adjusted difference between current vault reserve requirements. Since the introduction of changes in reserve requirements cash and the amount applied to satisfy current reserve requirements. (CRR), currency and vault cash figures have been measured over the computation 7. Break-adjusted total reserves equal break-adjusted required reserves (line 9) periods ending on Mondays. plus excess reserves (line 16). 13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14). 8. To adjust required reserves for discontinuities that are due to regulatory Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Nonfinancial Statistics • November 1992 1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURESi Billions of dollars, averages of daily figures 1992 IItteemm 1988 1989 1990 1991 Dec. Dec. Dec. Dec. May June July Aug. Seasonally adjusted Measured 1 Ml 786.9 794.1 826.1 898.1 954.3 951.8 960.8" 973.6 2 M2 3,071.1 3,227.3 3,339.0 3,439.9 3,471.6r 3,462.5" 3,459.6" 3,468.3 3 M3 3,923.1 4,059.8 4,114.6 4,171.0 4,177.3r 4,165.8" 4,162.0" 4,171.0 4 L 4,677.9 4,891.7 4,966.6 4,989.8 5,004.4r 5,017.7" 5,015.1 n.a. 5 Debt 9,316.1 10,060.0 10,747.0 11,203.7 ll,425.6r 11,478.6" 11,526.2 n.a. Ml components 6 Currency . 212.3 222.6 246.8 267.3 274.7 276.2 279.0 282.3 7 Travelers checks 7.5 7.4 8.3 8.2 8.0 7.9 7.8 7.9 8 Demand deposits5 286.5 279.0 277.1 289.5 315.1 311.0 315.6 320.7 9 Other checkable deposits6 280.6 285.1 293.9 333.2 356.4r 356.7 358.5 362.7 Nontrqnsaction components 10 In M2 2,284.2 2,433.2 2,512.9 2,541.8 2,517.4r 2,510.7" 2,498.8" 2,494.7 11 In M3 852.0 832.5 775.6 731.1 705.7 703.3 702.4" 702.8 Commercial banks 12 Savings deposits, including MMDAs 542.7 541.4 581.9 664.9 707.9 710.8" 716.3 724.4 13 Small time deposits9. 447.0 531.0 606.4 598.5 558.1 551.6 543.8 535.2 14 Large time deposits • 11 366.9 398.2 374.0 354.0 329.7 325.5 319.1 315.0 Thrift institutions 15 Savings deposits, including MMDAs 383.5 349.7 338.8 377.7 414.4 416.2 418.0 421.1 16 Small time deposits9 585.9 617.5 562.3 464.5 410.7r 404.6" 398.0" 390.8 17 Large time deposits10 174.3 161.1 120.9 83.1 71.3 69.8 69.5 68.2 Money market mutual funds 18 General purpose and broker-dealer . 241.9 316.3 348.9 360.5 355.0 353.3 349.8 347.8 19 Institution-only 91.0 107.2 133.7 179.1 194.8 199.7 207.7 217.2 Debt components 20 Federal debt 2.101.5 2,249.8 2,493.6 2,767.2 2,893.4 2,929.9 2,959.3 n.a. 21 Nonfederal debt 7.214.6 7,810.2 8,253.3 8,436.5 8,532.2 8,548.7" 8,566.9 n.a. Not seasonally adjusted Measures2 22 Ml 804.1 811.9 844.1 917.3 944.0 952.1" 963.3 971.1 23 M2 3.083.8 3,240.0 3,351.9 3,453.7 3,453.9" 3,458.4" 3,462.7" 3,467.3 24 M3 3,934.7 4,070.3 4,124.7 4,181.7 4,163.0" 4,162.9" 4,163.1" 4,173.7 25 L 4.694.9 4,911.0 4,986.4 5,010.1 4,987.8" 5,004.8" 5,006.4 n.a. 26 Debt 9,301.5 10,045.6 10,734.2 11,190.3 11,381.4" 11,431.0" 11,479.5 n.a. Ml components 27 Currency3 214.8 225.3 249.5 270.0 275.7 277.3 280.8 282.9 28 Travelers checks 6.9 6.9 7.8 7.7 7.7 8.2 8.6 8.8 29 Demand deposits5 298.9 291.5 289.9 303.0 307.4" 310.6 317.2 319.2 30 Other checkable deposits6 283.5 288.1 296.9 336.5 353.1 356.1 356.6" 360.3 Nontrqnsaction components 31 In M2 2,279.7 2,428.1 2,507.8 2,536.5 2,509.9" 2,506.3" 2,499.5" 2,496.2 32 In M38 850.8 830.3 772.8 728.0 709.0 704.5 700.3" 706.4 Commercial banks 33 Savings deposits, including MMDAs 543.8 543.0 580.0 662.4 707.9 714.1 719.9 726.2 34 Small time deposits9 446.0 529.5 606.3 598.7 556.4 549.6 543.6 534.8 35 Large time deposits10'11 365.9 397.1 373.0 352.8 330.9 326.9 318.9 316.6 Thrift institutions 36 Savings deposits, including MMDAs 381.1 347.6 337.7 376.3 414.4 418.2 420.1 422.2 37 Small time deposits9. 584.9 616.0 562.2 464.6 409.4" 403.2" 397.8" 390.5 38 Large time deposits10 175.2 162.0 120.6 82.8 71.5 70.1 69.4 68.6 Money market mutual funds 39 General purpose and broker-dealer 240.8 314.6 346.8 358.1 352.3 348.9 345.4 346.1 40 Institution-only 91.4 107.8 134.4 180.3 195.5 195.7 202.2 213.8 Repurchase agreements and eurodollars 41 Overnight 83.2 77.5 74.7 76.3 69.5 72.4" 72.8" 76.3 42 Term 227.4 178.5 158.3 127.7 126.2 126.1" 124.3" 123.6 Debt components 43 Federal debt 2,098.9 2,247.5 2,491.3 2,765.0 2,884.1 2,912.2 2,937.5 n.a. 44 Nonfederal debt 7,202.5 7,798.1 8,242.9 8,425.3 8,497.3" 8,518.9" 8,542.0 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 all commercial banks other than those due to depository institutions, nonfinancial sectors. Private debt consists of corporate bonds, mortgages, conthe U.S. government, and foreign banks and official institutions, less cash items in sumer credit (including bank loans), other bank loans, commercial paper, bankers the process of collection and Federal Reserve float; and (4), other checkable acceptances, and other debt instruments. Data are derived from the Federal deposits (OCDs), consisting of negotiable order of withdrawal (NOW) and Reserve Board's flow of funds accounts. Debt data are based on monthly automatic transfer service (ATS) accounts at depository institutions, credit union averages. This sum is seasonally adjusted as a whole. share draft accounts, and demand deposits at thrift institutions. Seasonally 3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of adjusted Ml is computed by summing currency, travelers checks, demand depository institutions. deposits, and OCDs, each seasonally adjusted separately. 4. Outstanding amount of U.S. dollar-denominated travelers checks of non- M2: Ml plus (1) overnight (and continuing-contract) repurchase agreements bank issuers. Travelers checks issued by depository institutions are included in (RPs) issued by all depository institutions and overnight Eurodollars issued to demand deposits. U.S. residents by foreign branches of U.S. banks worldwide, (2) 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 Nonfinancial Statistics • November 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 1992 Bank group, or type of customer 1199889922 11999900 22 1199991122 Jan. Feb. Mar. Apr. May June DEBITS TO Seasonally adjusted Demand deposits 1 All insured banks 256.150.4 277,916.3 281,050.1 306,523.0 298,098.7 305,837.0 315,651.2 292,177.4 302.259.2 2 Major New York City banks.. 129,319.9 131,784.0 140.905.5 161,915.3 154,751.0 164,171.5 167,177.5 154,225.3 149.743.3 3 Other banks 126.830.5 146,132.3 140.144.6 144,607.7 143,347.7 141,665.5 148,473.7 137,952.1 152,515.9 4 ATS-NOW accounts4 2,910.5 3,349.6 3,624.6 3,719.4 3,787.2 3,670.2 3,957.0 3,552.6 4,070.7 5 Savings deposits5 547.5 558.8 1,377.4 3,089.7 3,142.5 3,361.0 3,356.5 3,241.4 3,838.9 DEPOSIT TURNOVER Demand deposits3 735.1 800.6 817.6 870.1 817.6 832.5 857.4 771.2 814.2 6 All insured banks 3,421.5 3,804.1 4,391.9 4,997.4 4,633.3 4,974.4 5,029.1 4,438.0 4,470.1 7 Major New York City banks.. 408.3 467.7 449.6 452.1 432.8 423.7 443.3 400.9 451.6 8 Other banks 9 ATS-NOW accounts4 15.2 16.5 16.1 15.1 15.1 14.5 15.6 13.7 15.6 10 Savings deposits 3.0 2.9 3.3 4.7 4.7 4.9 4.7 4.4 5.1 DEBITS TO Not seasonally adjusted Demand deposits3 11 All insured banks 256,133.2 277,400.0 280,922.8 306,706.9 276,158.6 313,513.5 314,388.6 290,950.2 311,175.8 12 Major New York City banks.. 129,400.1 131,784.7 140,563.0 158,932.3 143,476.0 168,122.2 164,994.4 153,163.7 154,953.8 13 Other banks 126,733.0 145,615.3 140,359.7 147,774.6 132,682.6 145,391.3 149,394.3 137,786.5 156,222.0 14 ATS-NOW accounts4 2,910.7 3,342.2 3,622.4 4,130.2 3,450.5 3,747.2 4,104.5 3,515.5 4,032.5 15 MMDAs6 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 3,364.7 2,872.0 3,363.7 3,459.2 3,031.2 3,472.9 DEPOSIT TURNOVER Demand deposits3 17 All insured banks 735.4 799.6 817.5 851.5 778.4 878.2 849.3 785.8 842.5 18 Major New York City banks.. 3,426.2 3,810.0 4,370.1 4,633.6 4,387.6 5,308.9 5,042.4 4,551.3 4,668.3 19 Other banks 408.0 466.3 450.6 453.6 412.0 446.9 442.7 409.3 464.7 20 ATS-NOW accounts4 15.2 16.4 16.1 16.4 13.7 14.7 15.7 13.7 15.6 21 MMDAs6 7.9 8.0 n.a n.a n.a n.a n.a n.a n.a 22 Savings deposits5 2.9 2.9 3.4 5.1 4.2 4.9 4.9 4.3 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, DC 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 1992r Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Seasonally adjusted 1 Total loans and securities1 2,789.1 2,805.5 2,822.8 2,838.4 2,849.0 2,849.5 2,855.7 2,868.2 2,865.8 2,870.0 2,869.8 2,882.4 2 U.S. government securities 523.0 538.7 550.8 562.6 565.7 570.4 578.5 590.6 599.1 607.9 615.1 629.8 i Other securities 176.3 177.9 178.8 179.2 178.6 178.6 175.6 175.6 173.9 172.4 174.5 174.9 4 Total loans and leases' 2,089.8 2,088.9 2,093.2 2,0%.5 2,104.7 2,100.5 2,101.5 2,102.0 2,092.8 2,089.7 2,080.2 2,077.6 5 Commercial and industrial ..... 622.0 622.6 621.7 617.9 616.6 612.2 609.5 606.5 603.0 598.9 596.4 594.2 b Bankers acceptances held ... 7.2 6.6 7.2 7.3 7.5 7.7 7.6 7.2 7.4 6.9 7.6 7.4 7 Other commercial and industrial 614.7 616.1 614.6 610.6 609.1 604.5 601.9 599.3 595.6 592.0 588.8 586.8 8 U.S. addressees3— 608.6 609.4 607.9 603.2 602.7 598.1 595.4 592.7 588.8 585.4 581.7 579.7 9 Non-U.S. addressees3 6.1 6.7 6.7 7.4 6.4 6.4 6.5 6.6 6.8 6.7 7.1 7.0 10 Real estate 868.1 869.8 871.9 873.1 873.3 877.0 878.6 880.5 881.7 880.7 878.8 878.0 11 Individual 367.3 364.2 363.1 363.5 363.1 363.6 362.2 361.2 359.6 360.0 359.7 358.0 12 Security 50.0 51.1 53.5 54.5 59.4 57.1 60.4 65.2 61.9 64.3 61.1 62.9 13 Nonbank financial institutions 37.1 37.2 37.8 40.6 40.3 41.4 41.9 41.0 41.3 40.4 38.6 39.5 14 Agricultural 34.5 34.1 33.8 34.0 33.7 33.5 34.2 34.2 34.0 34.3 34.2 34.7 15 State and political subdivisions 30.3 29.7 29.4 29.1 28.1 28.2 28.2 28.0 27.7 27.4 26.9 26.6 16 Foreign banks 6.8 6.6 6.9 7.4 7.2 6.7 6.5 6.6 7.2 8.0 8.3 7.6 17 Foreign official institutions 2.3 2.4 2.5 2.4 2.3 2.2 2.2 2.1 2.1 2.1 2.2 2.2 18 Lease-financing receivables 31.8 31.6 31.5 31.7 31.5 31.6 31.6 31.5 31.4 31.6 30.6 30.3 19 All other loans 39.8 39.5 41.1 42.4 49.2 47.0 46.4 45.3 42.9 42.0 43.2 43.6 Not seasonally adjusted 20 Total loans and securities1 2,789.3 2,808.3 2,828.1 2,844.8 2,845.7 2,852.1 2,856.5 2,867.3 2,861.4 2,870.9 2,862.4 2,878.9 21 U.S. government securities 521.6 537.6 551.7 558.5 565.2 574.3 583.9 592.8 599.2 607.0 612.4 627.7 22 Other securities 176.3 178.3 179.0 179.5 179.1 178.7 175.8 175.2 173.6 172.4 173.6 175.0 23 Total loans and leases 2,091.4 2,092.4 2,097.4 2,106.7 2,101.4 2,099.1 2,096.9 2,099.2 2,088.6 2,091.5 2,076.3 2,076.2 24 Commercial and industrial ..... 619.1 621.1 620.4 619.2 613.5 611.4 612.1 609.4 605.4 600.9 596.3 592.5 25 Bankers acceptances held ... 7.2 6.6 7.3 7.6 7.5 7.8 7.5 7.0 7.4 7.0 7.2 7.2 26 Other commercial and industrial 611.9 614.5 613.1 611.6 605.9 603.6 604.6 602.4 598.0 593.9 589.0 585.3 27 U.S. addressees 605.9 608.3 606.9 604.6 599.1 596.8 598.0 595.5 591.2 586.9 581.9 578.3 28 Non-U.S. addressees3 6.0 6.2 6.2 7.0 6.9 6.8 6.7 6.9 6.8 7.0 7.1 7.0 29 Real estate 869.0 871.2 873.2 873.4 872.7 874.0 875.2 879.3 882.4 881.1 880.0 880.0 30 Individual 368.7 365.1 364.5 368.1 367.4 363.6 359.7 358.5 358.0 357.9 357.0 357.1 31 Security 48.6 50.8 53.5 55.1 59.0 61.6 62.2 66.7 58.5 64.1 58.9 61.1 32 Nonbank financial institutions 36.7 36.9 38.1 41.9 40.7 41.0 41.3 40.5 40.6 40.7 38.8 39.7 33 Agricultural 35.5 35.0 34.1 34.0 33.2 32.6 32.9 33.2 33.5 34.5 35.0 35.6 34 State and political subdivisions 30.2 29.8 29.4 29.0 28.5 28.3 28.2 27.9 27.7 27.4 26.7 26.5 35 Foreign banks 6.9 6.9 7.3 7.9 7.0 6.6 6.3 6.4 7.1 7.7 8.2 7.5 36 Foreign official institutions 2.3 2.4 2.5 2.4 2.3 2.2 2.2 2.1 2.1 2.1 2.2 2.2 37 Lease-financing receivables — 31.7 31.8 31.6 31.7 31.8 31.8 31.7 31.5 31.4 31.3 30.4 30.1 38 All other loans 42.8 41.6 42.6 44.1 45.4 45.9 45.1 43.7 41.9 43.9 42.8 44.0 1. Adjusted to exclude loans to commercial banks in the United States. 3. United States includes the fifty states and the District of Columbia. 2. Includes nonfinancial commercial paper held. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • November 1992 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Billions of dollars, monthly averages 1991 1992 Source of funds Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Seasonally adjusted 2 1 T N o e t t a b l a n l o a n n d ce e s p o d s u it e f t u o n r d e s l ated foreign offices3 2 2 4 0 9. . 3 3 26 3 3 0 . . 9 9 2 3 6 3 7 . . 1 0 28 3 0 9 . . 8 2 2 4 8 3 4. . 7 9 2 4 8 2 9 . . 9 0 2 4 9 6 0 . . 2 0 2 5 9 0 3 . . 8 0 2 5 9 5 3 . . 8 3 2 6 9 1 6 . . 8 6 2 6 9 3 9 . . 8 2 2 5 9 9 6 . . 8 6 3 Borrowings from other than commercial banks in United States 229.0 232.9 233.9 241.6 240.7 246.1 243.7 242.1 237.6 234.8 235.4 236.8 4 Domestically chartered banks 155.1 153.9 150.8 153.7 155.6 158.8 154.7 151.7 148.5 147.0 147.4 147.8 5 Foreign-related banks 74.0 79.1 83.1 87.8 85.1 87.3 89.1 90.4 89.1 87.8 88.0 89.0 Not seasonally adjusted 6 7 N To e t t a b l a n l o a n n d ce e s p o d s u it e f t u o n r d e s l 2 a ted foreign offices3 24 1 6 9 . . 7 5 2 3 6 0 5 . . 5 1 2 3 7 4 1 . . 0 3 2 4 7 2 9 . . 7 0 2 4 8 4 0 . . 6 6 2 4 8 3 9 . . 1 6 2 4 9 6 3 . . 6 9 2 4 9 9 0 . . 4 2 2 5 9 8 9 . . 2 1 2 6 9 1 8 . . 4 1 2 6 9 0 5 . . 3 6 2 5 9 8 3 . . 2 7 8 Domestically chartered banks -8.8 -7.2 -4.4 -3.8 -4.6 -.8 -.8 -4.9 -4.2 -6.3 -7.0 -9.3 9 Foreign-related banks 28.3 37.7 38.5 46.5 49.2 43.9 47.5 54.4 62.4 67.8 67.2 67.5 10 Borrowings from other than commercial banks in United States4 227.2 234.6 237.3 236.3 235.9 246.6 247.2 240.8 240.9 236.7 235.4 235.5 11 Domestically chartered banks 154.0 154.7 155.1 152.4 151.4 159.3 157.7 149.8 151.1 147.2 145.9 146.0 12 Federal funds and security RP borrowings 150.5 151.5 151.9 149.3 147.9 155.8 154.4 146.3 147.3 143.1 141.8 141.9 13 Other 3.5 3.2 3.2 3.1 3.4 3.5 3.3 3.4 3.9 4.1 4.2 4.2 14 Foreign-related banks6 73.2 79.9 82.2 83.8 84.6 87.2 89.5 91.0 89.8 89.5 89.5 89.4 MEMO Gross large time deposits1 15 Seasonally adjusted 436.0 429.5 426.1 423.9 416.0 413.7 406.9 399.9 396.7 392.4 386.0 384.5 16 Not seasonally adjusted 437.5 429.7 425.8 422.6 413.6 412.6 407.4 398.8 398.0 393.7 385.9 386.1 U.S. Treasury demand balances at commercial banks8 17 Seasonally adjusted 23.8 29.2 34.2 26.4 27.8 19.5 21.8 19.9 17.0 25.8 21.9 32.6 18 Not seasonally adjusted 26.9 28.7 28.5 25.4 33.1 25.2 20.1 17.7 21.0 25.2 19.7 22.2 1. Commercial banks are nationally and state-chartered banks in the fifty states given for the purpose of borrowing money for the banking business. This includes and the District of Columbia, agencies and branches of foreign banks, New York borrowings from Federal Reserve Banks and from foreign banks, term federal investment companies majority owned by foreign banks, and Edge Act corpora- funds, loan RPs, and sales of participations in pooled loans. tions owned by domestically chartered and foreign banks. 5. Figures are based on averages of daily data reported weekly by approxi- Data in this table also appear in the Board's G. 10 (411) release. For ordering mately 120 large banks and quarterly or annual data reported by other banks. address, see inside front cover. 6. Figures are partly averages of daily data and partly averages of Wednesday 2. Includes federal funds, repurchase agreements (RPs), and other borrowing data. from nonbanks and net balances due to related foreign offices. 7. Time deposits in denominations of $100,000 or more. Estimated averages of 3. Reflects net positions of U.S. chartered banks, Edge act corporations, and daily data. U.S. branches and agencies of foreign banks with related foreign offices plus net 8. U.S. Treasury demand deposits and Treasury tax-and-loan notes at compositions with own International Banking Facilities (IBFs). mercial banks. Averages of daily data. 4. Borrowings through any instrument, such as a promissory note or due bill, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions A19 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKS Last-Wednesday-of-Month Series1 Billions of dollars 1991 1992 AAccccoouunntt Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. ALL COMMERCIAL BANKING INSTITUTIONS2 1 Total assets 3,473.1 3,514.4 3,545.4 3,503.0 3,502.4 3,499.8 3,516.3 3,521.8 3,504.2 3,495.6 3,516.5 2 Loans and securities 2,982.7 3,005.3 3,026.9 3,019.0 3,019.4 3,023.0 3,025.8 3,019.6 3,018.0 3,006.4 3,028.1 3 Investment securities 687.3 696.7 705.5 706.1 712.1 720.8 725.1 732.4 745.2 752.2 765.0 4 U.S. government securities 522.6 530.7 538.0 541.2 548.7 558.6 564.3 572.9 587.4 592.0 604.2 5 Other 164.7 166.0 167.4 165.0 163.5 162.2 160.8 159.5 157.8 160.2 160.8 6 Trading account assets 35.3 36.4 33.8 38.0 37.7 39.2 37.7 36.6 34.9 36.5 36.3 7 Total loans 2,260.0 2,272.1 2,287.6 2,274.9 2,269.5 2,263.1 2,263.0 2,250.6 2,237.9 2,217.8 2,226.8 8 Interbank loans 169.5 173.6 175.1 177.6 175.5 170.2 166.7 168.9 154.3 150.4 150.3 9 Loans excluding interbank 2,090.5 2,098.5 2,112.5 2,097.3 2,094.1 2,092.9 2,0%.3 2,081.7 2,083.6 2,067.4 2,076.5 10 Commercial and industrial 618.8 621.3 621.2 611.8 611.2 611.0 607.0 603.1 598.4 593.3 590.1 11 Real estate 872.6 872.8 873.1 873.1 872.3 873.7 881.1 880.0 879.2 879.5 879.2 12 Individual 365.4 363.6 369.6 366.8 362.4 359.5 359.5 358.2 358.8 357.7 357.4 13 All other 233.8 240.8 248.6 245.6 248.2 248.6 248.6 240.3 247.2 236.9 249.7 14 Total cash assets 206.0 224.2 229.2 201.6 204.8 203.7 208.3 222.4 202.9 203.8 201.3 15 Reserves with Federal Reserve Banks .. 25.9 24.7 29.2 23.7 27.4 28.5 23.7 28.6 28.8 23.5 22.5 16 Cash in vault 30.7 29.6 30.8 31.1 30.7 29.8 30.8 32.2 30.8 31.2 31.2 17 Cash items in process of collection ... 75.5 90.6 87.7 73.4 74.0 71.5 78.4 84.1 69.4 71.2 70.4 18 Demand balances at U.S. depository institutions 29.2 32.7 33.3 27.8 28.4 28.2 28.6 31.7 28.7 29.2 29.3 19 Other cash assets 44.7 46.5 48.3 45.5 44.2 45.6 46.7 45.9 45.2 48.8 47.9 20 Other assets 284.4 285.0 289.3 282.4 278.2 273.1 282.3 279.7 283.3 285.4 287.2 21 Total liabOities 3,236.6 3,276.9 3,305.7 3,260.2 3,258.9 3,255.5 3,269.1 3,272.1 3,250.0 3,239.5 3,256.5 22 Total deposits 2,450.7 2,492.7 2,498.5 2,451.7 2,458.4 2,465.5 2,464.2 2,475.4 2,442.1 2,453.2 2,456.0 23 Transaction accounts 629.7 672.2 685.4 646.1 654.8 665.9 676.0 686.8 665.6 677.8 682.4 24 Savings deposits 643.7 651.8 657.7 669.5 682.0 692.6 694.3 702.5 704.2 713.5 719.3 25 Time deposits 734.2 728.6 721.8 707.0 698.6 691.8 688.7 680.3 674.9 667.4 659.7 26 Borrowings 503.6 490.2 503.8 506.1 503.3 493.7 501.0 492.6 500.2 470.7 482.5 27 Other liabilities 282.3 294.0 303.3 302.4 297.1 296.2 303.9 304.0 307.7 315.6 318.0 28 Residual (assets less liabilities) 236.5 237.6 239.7 242.8 243.6 244.3 247.2 249.8 254.3 256.1 260.0 DOMESTICALLY CHARTERED COMMERCIAL BANKS4 29 Total assets 3,027.7 3,055.2 3,072.0 3,032.3 3,031.7 3,035.0 3,050.3 3,053.5 3,033.9 3,020.0 3,033.5 30 Loans and securities 2,677.2 2,691.7 2,698.7 2,692.8 2,693.0 2,702.6 2,700.4 2,695.6 2,689.2 2,678.8 2,6%.8 31 Investment securities 640.0 646.5 652.2 654.7 662.1 670.3 675.1 679.3 691.0 695.8 709.5 32 U.S. government securities 494.7 500.7 506.4 511.1 519.9 529.5 535.1 540.7 553.3 556.7 569.7 33 Other 145.3 145.8 145.8 143.6 142.2 140.8 140.0 138.5 137.7 139.1 139.8 34 Trading account assets 35.3 36.4 33.8 38.0 37.7 39.2 37.7 36.6 34.9 36.5 36.3 35 Total loans 2,001.9 2,008.8 2,012.8 2,000.1 1,993.1 1,993.2 1,987.6 1,979.7 1,963.3 1,946.5 1,951.0 36 Interbank loans 144.1 150.1 149.4 154.0 150.9 149.0 138.1 142.7 129.3 123.3 125.6 37 Loans excluding interbank 1,857.8 1,858.7 1,863.4 1,846.1 1,842.2 1,844.2 1,849.5 1,837.0 1,834.1 1,823.3 1,825.4 38 Commercial and industrial 471.2 468.8 464.5 455.8 455.5 455.8 454.4 450.6 446.3 441.0 438.1 39 Real estate 818.9 819.1 819.3 818.8 817.9 819.0 827.1 825.8 825.7 826.0 826.0 40 Revolving home equity 69.2 69.4 70.0 70.3 69.9 69.8 70.5 70.9 71.5 71.9 72.3 41 Other red estate 749.7 749.6 749.3 748.5 747.9 749.2 756.6 754.9 754.2 754.1 753.7 4? Individual 365.4 363.6 369.6 366.8 362.4 359.5 359.5 358.2 358.8 357.7 357.4 43 All other 202.4 207.3 209.9 204.8 206.5 209.9 208.5 202.3 203.3 198.5 203.9 44 Total cash assets 179.0 197.5 201.7 175.9 179.7 177.7 182.1 194.3 173.8 173.1 170.3 45 Reserves with Federal Reserve Banks. 25.1 24.0 28.5 23.3 26.8 28.0 23.0 26.9 28.0 22.9 21.9 46 Cash in vault 30.7 29.6 30.7 31.1 30.7 29.8 30.8 32.2 30.8 31.1 31.1 47 Cash items in process of collection ... 73.7 88.4 85.6 71.1 71.8 69.0 75.9 81.7 66.4 68.9 67.8 48 Demand balances at U.S. depository institutions 27.3 30.7 31.1 26.4 27.1 26.9 27.2 30.2 27.2 27.8 27.8 49 Other cash assets 22.3 24.8 25.8 24.0 23.3 24.1 25.2 23.3 21.5 22.3 21.6 50 Other assets 171.4 166.0 171.5 163.6 159.0 154.6 167.8 163.6 170.9 168.2 166.5 51 Total liabilities 2,795.4 2,821.8 2,836.5 2,793.8 2,792.4 2,794.8 2,807.3 2,807.9 2,783.9 2,768.2 2,777.7 52 Deposits 2,301.9 2,342.1 2,344.0 2,293.0 2,302.7 2,309.1 2,314.3 2,322.5 2,288.2 2,295.5 2,295.4 53 Transaction accounts 620.3 662.0 674.9 636.1 645.2 655.8 666.4 677.1 655.4 667.9 672.5 54 Savings deposits (excluding checkable) 639.9 647.9 653.7 665.4 678.0 688.6 690.2 698.3 699.7 708.8 714.7 55 Time deposits 731.4 725.8 719.0 704.2 695.8 689.0 686.0 677.6 672.0 664.6 656.9 56 Borrowings 361.5 345.7 355.5 365.2 359.3 354.3 367.3 360.3 367.4 340.8 353.5 57 Other liabilities 132.1 134.1 137.0 135.6 130.4 131.4 125.8 125.1 128.2 131.8 128.9 58 Residual (assets less liabilities) 232.3 233.4 235.5 238.6 239.4 240.1 243.0 245.6 250.1 251.9 255.8 1. Data are partly estimated. They include all bank-premises subsidiaries and and quarter-end condition reports. other significant majority-owned domestic subsidiaries. 3. This balancing item is not intended as a measure of equity capital for use in 2. Includes insured domestically chartered commercial banks, agencies and capital adequacy analysis. branches of foreign banks, Edge Act and Agreement corporations, and New York 4. Includes all member banks and insured nonmember banks. Loans and State foreign investment corporations. Data are estimates for the last Wednesday securities data are estimates for the last Wednesday of the month based on a of the month based on a sample of weekly reporting foreign-related institutions sample of weekly reporting banks and quarter-end condition reports. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • November 1992 1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS Millions of dollars, Wednesday figures Account July 1 July 8 July 15 July 22 July 29 Aug. 5 Aug. 12 Aug. 19 ASSETS 1 Cash and balances due from depository institutions 138,966 100,605 116,528 102,960" 99,579" 109,889 97,852 %,869 2 U.S. Treasury and government securities 247,068 248,240 249,012 248,160 248,203 257,752 258,064 262,111 3 Trading account 16,838 17,597 18,608 18,505 19,003 20,126 20,503 22,337 4 5 Inv M es o t r m tg e a n g t e - a b c a c c o k u e n d t securities1 23 80 0 , , 9 2 0 3 7 0 23 8 0 0 , , 6 9 4 8 3 0 2 8 3 0 0 , , 7 4 2 0 3 4 22 8 9 0 , , 6 2 5 8 5 2 2 7 2 9 9 , , 9 1 2 9 7 9 2 8 3 0 7 , , 4 6 9 2 7 6 23 8 7 0 , , 5 1 6 7 1 6 2 7 3 9 9 , , 7 7 6 7 3 4 All others, by maturity 6 One year or less 25,748 25,059 24,292 24,324 24,548 24,920 24,644 24,701 7 One year through five years 67,469 67,827 68,721 69,226 69,992 74,131 74,581 76,828 8 More than five years 56,106 56,777 56,668 55,823 54,733 58,078 58,160 58,482 9 Other securities 53,831r 53,222" 53,953" 54,319" 54,185" 54,473 54,509 55,624 10 Trading account 1,882r 1,690" 1,577" 1,528" 1,548" 1,537 1,425 2,145 11 Investment account 51,949 51,533 52,376 52,791 52,637 52,936 53,084 53,479 12 State and political subdivisions, by maturity ., 21,175 21,056 21,281 21,474 21,717 21,720 21,518 21.568 13 One year or less 3,181 3,192 3,446 3,665 3,890 4,007 3,838 3,919 14 More than one year 17,994 17,864 17,835 17,809 17,827 17,713 17,681 17,649 15 Other bonds, corporate stocks, and securities , 30,774 30,477 31,095 31,317 30,920 31,216 31,565 31,911 16 Other trading account assets 11,700" 12,067" 12,172" 11,764" 13,444" 11,567 11,429 11,807 17 Federal funds sold2 100,830 90,390 88,157 83,692 78,941 84,964 82,146 84,247 18 To commercial banks in the United States 65,628 60,034 59,867 55,765 52,218 58,907 55,027 56,856 19 To nonbank brokers and dealers 29,540 25,578 24,018 23,508 22,856 21,892 22,676 22,295 20 To others3 5,662 4,777 4,271 4,418 3,867 4,164 4,443 5,095 21 Other loans and leases, gross 984,338" 979,374" 975,732" 970,790" 970,420" 972,100 970,040 966,462 22 Commercial and industrial 282,774" 279,365" 279,529" 277,589" 276,476" 278,116 277,125 276,705 23 Bankers acceptances and commercial paper ... 1,459 1,655 1,753 1,699 1,698 1,776 1,722 1,646 24 All other 281,315" 277,711" 277,776" 275,890" 274,779" 276,340 275,403 275,060 25 U.S. addressees 279,541" 276,1%" 276,228" 274,387" 273,224" 274,644 273,689 273,475 26 Non-U.S. addressees 1,775 1,515 1,549 1,503 1,554" 1,696 1,713 1,585 27 Real estate loans 399,384" 399,603" 398,275" 397,519" 397,405" 397,484 397,057 394,477 28 Revolving, home equity 41,866 41,858 41,837 41,873 41,965 42,017 42,117 42,181 29 All other 357,517" 357,745" 356,438" 355,646" 355,439" 355,467 354,941 352,2% 30 To individuals for personal expenditures 177,429" 176,985" 177,334" 177,247" 177,730" 176,364 176,626 177,393 31 To financial institutions 38,286" 39,676" 36,898" 36,762" 35,633" 37,499 36,794 35,949 32 Commercial banks in the United States 13,998 15,511 13,986 13,742 13,284 14,058 14,213 13,649 33 Banks in foreign countries 2,925 2,655 2,419 3,039 2,286 2,529 1,940 2,043 34 Nonbank financial institutions 21,363" 21,509" 20,493" 19,982" 20,063" 20,913 20,641 20,257 35 For purchasing and carrying securities 14,582 14,182 13,613 13,343 14,620 13,737 14,539 13,729 36 To finance agricultural production 6,060 6,082 6,124 6,144 6,192 6,199 6,339 6,420 37 To states and political subdivisions 16,048" 15,858" 15,818" 15,674" 15,733" 15,650 15,592 15.569 4 3 3 0 8 9 L A T e o ll a f s o o e t r - h f e e i i n r g a n l n o g c a o i n n v s g e 4 r r n e m ce e i n v t a s b l a e n s d official institutions , 2 2 3 5 1 , , , 7 0 0 2 3 1 4 6 7 " 2 2 1 4 1 , , , 3 8 3 3 9 9 6 4 2 " 2 2 4 2 , , 2 9 8 6 9 8 3 6 4 " " 2 2 4 1 , , 0 5 9 9 1 0 5 1 6 " " 2 2 4 1 , , 1 5 9 2 6 4 5 0 5 " " 2 2 4 1 , , 2 9 8 6 1 7 7 5 1 2 2 4 0 1 , , , 1 8 0 1 0 5 2 4 2 2 2 4 1 , , 1 1 9 5 2 4 2 2 4 4 4 1 2 LESS: L U o n a e n a r a n n e d d l i e n a c s o e m r e e serve5 3 2 7 , , 7 6 7 0 7 7 " 3 2 7 , , 7 8 7 0 1 6 " 37 2, , 7 8 6 9 0 6 " 3 2 7 , , 7 8 2 2 6 8 " 3 2 7 , , 7 8 1 0 3 1 " 38 2, ,2 6 6 8 4 1 3 2 8, , 4 6 3 % 2 3 2 8 , , 6 4 9 0 7 3 43 Other loans and leases, net 943,954 938,797 935,076" 930,236" 929,906" 931,156 928,912 925,362 44 Other assets 169,493" 159,482" 160,313" 157,873" 157,803" 162,227 163,151 160,629 45 Total assets 1,665,841" 1,602,803" 1,615,212" 1,589,004 l,582,060r 1,612,028 1,596,063 1,596,648 Footnotes appear on the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Commercial Banks A21 1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS—Continued Millions of dollars, Wednesday figures 1992 AAccccoouunntt July 1 July 8 July 15 July 22 July 29 Aug. 5 Aug. 12 Aug. 19 Aug. 26 LIABILITIES 46 Deposits 1,159,355 1,113,618 1,133,763 1,097,372 1,096,892" 1,116,383 1,109,309 1,098,697 1,092,782 47 Demand deposits 295,007 244,212 266,907" 237,300 240,671" 250,444 247,428 241,646 240,183 48 Individuals, partnerships, and corporations 230,226 198,987 213,388" 191,341 194,269" 202,092 202,658 195,787 193,130 49 Other holders 64,781 45,224 53,519 45,959 46,403" 48,351 44,770 45,859 47,053 50 States and political subdivisions 8,778 7,376 7,380 8,055 7,749" 8,188 7,527 8,002 7,802 51 U.S. government 4,088 1,528 3,558 1,417 1,818 2,227 1,747 1,794 1,750 52 Depository institutions in the United States 32,114 20,458 26,730 20,657 20,722 21,591 20,569 21,490 20,545 53 Banks in foreign countries 6,679 5,864 5,067 5,642 5,244 5,359 4,792 4,812 4,802 54 Foreign governments and official institutions 6% 1,166 651 642 593 646 528 710 687 55 Certified and officers' checks — 12,427 8,832 10,132 9,546 10,276" 10,340 9,606 9,051 11,466 56 Transaction balances other than demand deposits 105,501 105,258 104,229" 102,970 102,181 107,674 105,089 104,536 103,318 57 Nontransaction balances 758,847 764,149 762,626 757,101 754,040 758,265 756,792 752,515 749,281 58 Individuals, partnerships, and corporations 731,058r 737,144 735,330" 729,604" 726,667" 730,624 728,877 724,648 721,336 59 Other holders 27,789" 27,005 27,296" 27,497" 27,373" 27,641 27,916 27,867 27,944 60 States and political subdivisions 23,315r 22,419 22,340" 22,417" 22,380" 22,665 22,820 22,800 22,795 61 U.S. government 2,134r 2,120 2,104 2,095 2,115 2,110 2,178 2,166 2,208 62 Depository institutions in the United States 2,068r 2,194 2,583 2,716 2,611 2,601 2,649 2,592 2,633 63 Foreign governments, official institutions, and banks 272 272 269 270 266 265 269 309 309 64 Liabilities for borrowed money5 276,598 259,795 252,476 264,265 252,394" 266,727 258,223 267,309 263,617 65 Borrowings from Federal Reserve Banks 100 1,661 0 0 0 0 0 30 0 66 Treasury tax and loan notes 18,306 6,241 6,219 12,621" 14,740 11,503 14,802 14,305 13,919 67 Other liabilities for borrowed money 258,193 251,893 246,257 251,644" 237,654" 255,224 243,420 252,974 249,698 68 Other liabilities (including subordinated notes and debentures) 101,368 100,918 99,914 98,003 103,517" 98,984 97,972 99,850 100,302 69 Total liabilities 1,537,321 1,474,332 1,486,153 1,459,640 1,452,803" 1,482,093 1,465,504 1,465,856 1,456,701 70 Residual (total assets less total liabilities)7 128,520" 128,471r 129,060" 129,364 129,257 129,935 130,558 130,791 131,221 MEMO 71 Total loans and leases, gross, adjusted, plus securities .. I,318,141r 1,307,749" 1,305,173" 1,299,218" 1,299,691" 1,307,891 1,306,947 1,309,745 1,310,816 72 Time deposits in amounts of $100,000 or more 138,589 141,511 139,897 139,085 137,891 138,201 137,882 136,444 135,510 73 Loans sold outright to affiliates 1,094 1,109 1,111 1,096 1,098 1,102 1,104 1,081 1,090 74 Commercial and industrial 623 638 643 631 633 638 639 618 613 75 Other 471 471 468 465 465 464 465 463 476 76 Foreign branch credit extended to U.S. residents'" 24,354 24,600 24,843 24,914 25,036 24,848 24,744 24,476 24,371 77 Net due to related institutions abroad -10,883 -4,791 -8,907 -8,214 -4,197" -9,788 -11,064 -9,538 -8,015 1. Includes certificates of participation, issued or guaranteed by agencies of the 9. AfBliates include a bank's own foreign branches, nonconsolidated nonbank U.S. government, in pools of residential mortgages. affiliates of the bank, the bank's holding company (if not a bank), and noncon- 2. Includes securities purchased under agreements to resell. solidated nonbank subsidiaries of the holding company. 3. Includes allocated transfer risk reserve. 10. Credit extended by foreign branches of domestically chartered weekly 4. Includes negotiable order of withdrawal accounts (NOWs), automatic trans- reporting banks to nonbank U.S. residents. Consists mainly of commercial and fer service (ATS), and telephone and preauthorized transfers of savings deposits. industrial loans, but includes an unknown amount of credit extended to other than 5. Includes borrowings only from other than directly related institutions. nonfinancial businesses. 6. Includes federal funds purchased and securities sold under agreements to NOTE. Data that formerly appeared in table 1.28, Assets and Liabilities of Large repurchase. Weekly Reporting Commercial Banks in New York City, can be obtained from the 7. This balancing item is not intended as a measure of equity capital for use in Board's H.4.2 (504) weekly statistical release. For ordering address, see inside capital-adequacy analysis. front cover. 8. 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 • November 1992 1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS Assets and Liabilities1 Millions of dollars, Wednesday figures 1992 Account July 1 July 8 July 15 July 22 July 29 Aug. 5 Aug. 12 Aug. 19 Aug. 26 1 Cash and balances due from depository institutions 19,281 19,825 19,940 20,439 20,125 19,868 19,758 20,388 20,431 2 U.S. Treasury and government agency securities 23,113 22,682 23,194 24,501 24,270 24,253 24,127 23,848 23,717 3 Other securities 8,217 8,430 8,457 8,408 8,519 8,540 8,624 8,562 8,492 4 Federal funds sold1 17,729" 17,119" 15,198r 16,965" 16,966 19,130 15.175 16,921 18,393 5 To commercial banks in the United States .. 6,97 lr 6,050" 4,199" 5,678r 5,719 5,831 3,999 4,331 5,246 6 To others 10,758 11,068 11,000 11,287 11,246 13,299 11.176 12,591 13,147 7 Other loans and leases, gross 164,296r 161,747" 161,698" 159,617" 158,151 159,545 160,043 160,341 159,646 8 Commercial and industrial 96,535r 96,046" 96,303" 96,038" 95,786" 95,859 96,127 95,823 95,728 9 Bankers acceptances and commercial paper 2,476 2,450 2,377 2,493 2,399 2,477 2,466 2,349 2,273 10 All other 94,059r 93,596r 93,926" 93,545" 93,386r 93,382 93,661 93,474 93,455 11 U.S. addressees 90,989*^ 90,488" 90,898" 90,468" 90,351" 90,521 90,775 90,573 90,583 12 Non-U.S. addressees 3,071r 3,108" 3,029" 3,076 3,035 2,861 2,887 2,902 2,872 13 Loans secured by Teal estate 36,286r 36,188" 36,325" 36,243" 36,238r 36,197 36,213 36,203 36,071 14 To financial institutions 25,237r 23,806" 23,183" 22,182r 21,403" 21,904 22,123 22,471 21,903 15 Commercial banks in the United States. 9,277r 8,166" 7,649" 7,069" 7,454" 7,091 6,832 6,598 6,303 16 Banks in foreign countries 2,178 2,227 2,197 2,232 2,240 2,107 2,119 2,184 2,055 17 Nonbank financial institutions 13,782r 13,413" 13,337" 12,881" ll,708r 12,706 13,172 13,689 13,545 18 For purchasing and carrying securities ... 3,682 3,273 3,356r 2,591" 2,357" 3,179 3,165 3,353 3,474 19 To foreign governments and official institutions 348 353 342 333 354 356 352 388 372 20 All other 2,207r 2,081" 2,189"" 2,229" 2,013" 2,051 2,062 2,104 2,098 21 Other assets (claims on nonrelated parties) . 26,923 27,352 26,911" 26,900 26,998 29,616 29,773 29,268 29,377 22 Total assets3 300,766 297,516 298,860 298,893r 295,514 301,119 297,739 301,244 300,425 23 Deposits or credit balances due to other than directly related institutions 93,902 94,733 95,264 96,704 99,474 97.565 98,594 99,836 102,104 24 Demand deposits 3,650 3,422 3,401 3,766 3,539 3,265 3,496 3,648 3,394 25 Individuals, partnerships, and corporations 2,827 2,673 2,637 2,593 2,684 2,517 2,583 2,669 2,610 26 Other 823 749 763 1,173 856 748 912 979 785 27 Nontransaction accounts 90,253 91,311 91,863 92,938 95,935 94,301 95,099 96,188 98,710 28 Individuals, partnerships, and corporations 64,485r 64,746" 65,289" 66,169" 68,626" 67,668 68,524 69,136 70,692 29 Other 25,767r 26,565" 26,574" 26,769" 27,309" 26,632 26,575 27,052 28,018 30 Borrowings from other than directly related institutions 103,794 100,740 102,196 98,344 91,584 99,397 97,082 96,297 90,953 31 Federal funds purchased 58,710 56,130 59,148 50,232 47,782 56,533 53,241 53,147 50,009 32 From commercial banks in the United States 20,879 20,704" 19,588 13,522 14,356 15,734 15,589 13,431 12,633 33 From others 37,831 35,426" 39,560 36,709 33,426 40,799 37,652 39,716 37,376 34 Other liabilities for borrowed money 45,084 44,610 43,048 48,112 43,802 42,864 43,842 43,150 40,944 35 To commercial banks in the United States 10,741" 10,614" 9,974" 10,142" 10,418r 10,522 10,249 9,577 9,607 36 To others 34,343" 33,996" 33,074r 37,970" 33,384r 32,342 33,592 33,573 31,337 37 Other liabilities to nonrelated parties 26,700 26,378 26,533 26,288 26,917 28,538 28,618 28,854 29,421 38 Total liabilities6 300,766 297,516 298,860 298,893r 295,514 301,119 297,739 301,244 300,425 MEMO 39 Total loans (gross) and securities, adjusted7. 197,107" 195,761" 196,700" 196,744" 194,731" 198,546 197,137 198,744 198,699 40 Net due to related institutions abroad 35,162 35,303 31,405 35,493 37,052 35,451 33,205 34,341 37,578 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 OUTSTANDING Millions of dollars, end of period 1992 IItteemm 1987 1988 1989 1990 1991 Dec. Dec. Dec. Dec. Dec. Feb. Mar. Apr. May June July Commercial paper (seasonally adjusted unless noted otherwise) 1 AU issuers 358,997 458,464 525,831 561,142 530,300 527,941 539,749 537,020 533,719 542,205 547,242 Financial companies1 Dealer-placed paper 2 Total 102,742 159,777 183,622 215,123 214,445 210,686 219,287 225,989 226,552 234,212 226,943 3 Bank-related (not seasonally adjusted) 1,428 1,248 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Directly placed paper4 4 Total 174,332 194,931 210,930 199,835 183,195 178,995 181,485 172,136 168,914 171,321 179,725 5 Bank-related (not seasonally adjusted) 43,173 43,155 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 6 Nonfinancial companies5 81,923 103,756 131,279 146,184 132,660 138,260 138,977 138,895 138,253 136,672 140,574 Bankers dollar acceptances (not seasonally adjusted)6 7 Total 70,565 66,631 62,972 54,771 43,770 41,375 39,309 39,335 38,384 37,767 37,733 Holder 8 Accepting banks 10,943 9,086 9,433 9,017 11,017 10,578 9,640 9,821 9,255 9,737 9,225 9 Own bills 9,464 8,022 8,510 7,930 9,347 8,831 8,296 8,427 7,954 8,186 7,651 10 Bills bought 1,479 1,064 924 1,087 1,670 1,747 1,344 1,394 1,301 1,551 1,574 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 1,364 1,492 1,598 1,477 1,338 1,269 13 Others 58,658 56,052 52,473 44,836 31,014 29,423 28,177 27,915 27,653 26,692 27,240 Basis 14 Imports into United States 16,483 14,984 15,651 13,096 12,843 12,853 11,569 12,045 11,893 11,569 11,825 15 Exports from United States 15,227 14,410 13,683 12,703 10,351 9,252 9,403 9,168 8,702 9,062 9,015 16 All other 38,855 37,237 33,638 28,973 20,577 19,269 18,337 18,121 17,790 17,135 16,893 1. 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. 6. Data on bankers acceptances are gathered from institutions whose accep- 2. 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 3. Bank-related series were discontinued in January 1989. January. In January 1988, the group was reduced from 155 to 111 institutions. The 4. 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. 5. Includes public utilities and firms engaged primarily in such activities as 1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans1 Percent per year Av r e a r t a e g e Av r e a r t a e g e Period 10.50 1989 10.87 1990-—Apr. .. 10.00 1991--July ... 11.00 1990 10.01 10.00 Aug. .. 1 1 1 1 . .0 50 0 1991 8.46 July ... 1 1 0 0 . . 0 0 0 0 O Se c p t. t . .. . . . 10.50 1989—Jan. 10.50 Aug. .. 10.00 Nov. .. Feb. 10.93 Sept. .. 10.00 Dec. .. 10.00 Mar. 11.50 Oct. ... 10.00 Apr. 11.50 10.00 1992--Jan. ... 9.50 May 11.50 Dec. .. 10.00 Feb. , 9.00 June 11.07 Mar. .. 8.50 July 10.98 1991-—Jan. ... 9.52 Apr. .. 8.00 Aug. 10.50 Feb. .. 9.05 May ... 7.50 Sept. 10.50 Mar. .. 9.00 June .. 6.50 Oct. 10.50 Apr. .. 9.00 July ... Nov. 10.50 May ... 8.50 Aug. .. 6.00 Dec. 10.50 June .. 8.50 Sept. 1990—Jan. 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 • November 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 May June July Aug. July 31 Aug. 7 Aug. 14 Aug. 21 Aug. 29 MONEY MARKET INSTRUMENTS 1 Federal funds1'2'3 9.21 8.10 5.69 3.82 3.76 3.25 3.30 3.18 3.33 3.24 3.33 3.27 2 Discount window borrowing '4 6.93 6.98 5.45 3.50 3.50 3.02 3.00 3.00 3.00 3.00 3.00 3.00 Commercial paper3'5,6 i 1-month 9.11 8.15 5.89 3.87 3.91 3.43 3.38 3.36 3.39 3.35 3.37 3.39 4 3-month 8.99 8.06 5.87 3.88 3.92 3.44 3.38 3.38 3.39 3.36 3.37 3.39 5 6-month 8.80 7.95 5.85 3.97 3.99 3.53 3.44 3.48 3.48 3.41 3.42 3.45 Finance paper, directly placed3'5'7 6 1-month 8.99 8.00 5.73 3.76 3.81 3.33 3.28 3.28 3.29 3.26 3.27 3.28 7 3-month 8.72 7.87 5.71 3.77 3.82 3.33 3.27 3.29 3.29 3.27 3.26 3.28 8 6-month 8.16 7.53 5.60 3.77 3.80 3.35 3.29 3.29 3.30 3.27 3.28 3.30 Bankers acceptances^^'1* 9 3-month 8.87 7.93 5.70 3.76 3.80 3.32 3.28 3.29 3.28 3.25 3.26 3.31 10 6-month 8.67 7.80 5.67 3.85 3.88 3.42 3.35 3.40 3.39 3.32 3.31 3.36 Certificates of deposit, secondary market • 11 1-month 9.11 8.15 5.82 3.79 3.83 3.35 3.29 3.30 3.31 3.27 3.27 3.32 12 3-month 9.09 8.15 5.83 3.82 3.86 3.37 3.31 3.32 3.32 3.28 3.28 3.34 13 6-month 9.08 8.17 5.91 3.96 3.97 3.50 3.40 3.43 3.44 3.35 3.34 3.45 14 Eurodollar deposits, 3-month3'10 9.16 8.16 5.86 3.84 3.87 3.40 3.33 3.31 3.31 3.31 3.31 3.36 U.S. Treasury bills Secondary market3,5 15 3-month 8.11 7.50 5.38 3.63 3.66 3.21 3.13 3.18 3.16 3.11 3.07 3.16 16 6-month 8.03 7.46 5.44 3.75 3.77 3.28 3.21 3.27 3.24 3.19 3.15 3.25 U 1-year , .. 7.92 7.35 5.52 3.99 3.98 3.45 3.33 3.43 3.39 33..2288 33..2266 33..3388 Auction average ' ' 18 3-month 8.12 7.51 5.42 3.66 3.70 3.28 3.14 3.18 3.20 3.13 3.10 3.14 19 6-month 8.04 7.47 5.49 3.78 3.81 3.36 3.23 3.27 3.30 3.19 3.18 3.24 20 1-year 7.91 7.36 5.54 4.20 4.07 3.65 3.28 3.37 n.a. n.a. n.a. 3.28 U.S. TREASURY NOTES AND BONDS Constant maturities12 21 1-year 8.53 7.89 5.86 4.19 4.17 3.60 3.47 3.57 3.54 3.43 3.40 3.52 22 2-year 8.57 8.16 6.49 5.23 5.05 4.36 4.19 4.31 4.29 4.16 4.08 4.25 23 3-year 8.55 8.26 6.82 5.81 5.60 4.91 4.72 4.83 4.84 4.69 4.59 4.79 24 5-year 8.50 8.37 7.37 6.69 6.48 5.84 5.60 5.70 5.69 5.53 5.48 5.69 2i 7-year 8.52 8.52 7.68 7.06 6.90 6.36 6.12 6.17 6.18 6.03 6.03 6.23 2b 10-year 8.49 8.55 7.86 7.39 7.26 6.84 6.59 6.67 6.65 6.52 6.50 6.67 2/ 30-year 8.45 8.61 8.14 7.89 7.84 7.60 7.39 7.46 7.43 7.34 7.34 7.44 Composite 2288 Over 10 years (long-term) 8.58 8.74 8.16 7.80 7.72 7.40 7.19 7.23 7.21 7.12 7.14 7.26 STATE AND LOCAL NOTES AND BONDS Moody's series13 29 7.00 6.96 6.56 6.25 6.19 5.72 5.67 5.50 5.49 5.53 5.70 5.95 30 Baa 7.40 7.29 6.99 6.67 6.57 6.10 6.03 5.87 5.87 5.90 6.07 6.28 31 Bond Buyer series14 7.23 7.27 6.92 6.57 6.49 6.13 6.16 5.89 6.06 6.05 6.21 6.31 CORPORATE BONDS 32 Seasoned issues, all industries15 9.66 9.77 9.23 8.71 8.63 8.44 8.29 8.34 8.32 8.26 8.26 8.32 Rating group 33 9.26 9.32 8.77 8.28 8.22 8.07 7.95 8.01 7.99 7.93 7.91 7.97 34 Aa 9.46 9.56 9.05 8.63 8.56 8.37 8.21 8.24 8.22 8.19 8.19 8.25 35 A 9.74 9.82 9.30 8.81 8.70 8.49 8.34 8.39 8.37 8.31 8.32 8.37 36 Baa 10.18 10.36 9.80 9.13 9.05 8.84 8.65 8.71 8.68 8.62 8.62 8.69 37 A-rated, recently offered utility bonds16 9.79 10.01 9.32 8.70 8.62 8.38 8.16 8.22 8.15 8.10 8.16 8.20 MEMO: Dividend-price ratio17 38 Preferred stocks 9.05 8.96 8.17 7.61 7.53 7.47 7.21 7.33 7.30 7.29 7.13 7.11 39 Common stocks 3.45 3.61 3.25 2.99 3.06 3.00 2.97 2.93 2.94 2.98 2.97 3.00 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. General obligations based on Thursday figures; Moody's Investors Service. of the current week; monthly figures include each calendar day in the month. 14. General obligations only, with twenty years to maturity, issued by twenty 3. Annualized using a 360-day year or bank interest. state and local governmental units of mixed quality. Based on figures for 4. Rate for the Federal Reserve Bank of New York. Thursday. 5. Quoted on a discount basis. 15. Daily figures from Moody's Investors Service. Based on yields to maturity 6. An average of offering rates on commercial paper placed by several leading on selected long-term bonds. dealers for firms whose bond rating is AA or the equivalent. 16. Compilation of the Federal Reserve. This series is an estimate of the yield 7. An average of offering rates on paper directly placed by finance companies. on recently offered, A-rated utility bonds with a thirty-year maturity and five 8. Representative closing yields for acceptances of the highest rated money years of call protection. Weekly data are based on Friday quotations. center banks. 17. Standard and Poor's corporate series. Preferred stock ratio based on a 9. An average of dealer offering rates on nationally traded certificates of sample of ten issues: four public utilities, four industrials, one financial, and one deposit. transportation. Common stock ratios on the 500 stocks in the price index. 10. Bid rates for Eurodollar deposits at 11 a.m. London time. Data are for NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases. indication purposes only. For ordering address, see inside front cover. 11. Auction date for daily data; weekly and monthly averages computed on an issue-date basis. 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 Dec. Jan. Feb. Mar. Apr. May June July Aug. Prices and trading volume (averages of daily figures) Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 180.13 183.66 206.35 214.26 229.34 228.12 225.21 224.55 228.55 224.68 228.17 230.07 2 Industrial 228.04 226.06 258.16 266.01 286.62 286.09 282.36 281.60 285.17 279.54 281.90 284.44 3 Transportation 174.90 158.80 173.97 185.47 201.55 205.53 204.09 201.28 207.88 202.02 198.36 191.31 4 Utility 94.33 90.72 92.64 98.08 99.30 96.19 94.15 94.92 98.24 97.23 101.18 103.41 5 Finance 162.01 133.21 150.84 159.96 174.50 174.05 173.49 171.05 175.89 174.82 180.96 180.47 6 Standard & Poor's Corporation (1941-43 = 10)' 323.05 335.01 376.20 388.51 416.08 412.56 407.36 407.41 414.81 408.27 415.05 417.93 7 American Stock Exchange (Aug. 31, 1973 = 50? 356.67 338.32 360.32 373.08 409.08 413.74 404.09 388.06 392.63 385.56 384.07 385.80 Volume of trading (thousands of shares) 8 New York Stock Exchange 165,568 156,359 179,411 197,914 239,903 226,476 185,581 206,251 182,027 195,089 194,138 174,003 9 American Stock Exchange 13,124 13,155 12,486 17,475 20,444 18,126 15,654 14,096 13,455 11,216 10,749 n.a. Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers3 34,320 28,210 36,660 36,660 36,350 38,200 39,090 38,750 39,890 39,690 39,640 39,940 Free credit balances at brokers4 11 Margin accounts 7,040 8,050 8,290 8,290 7,865 7,620 7,350 8,780 7,700 7,780 7,920 8,060 12 Cash accounts 18,505 19,285 19,255 19,255 19,990 20,370 19,305 16,400 18,695 19,610 18,775 18,305 Margin requirements (percent of market value and effective date)6 Mar. 11, 1968 June 8 , 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3 1974 13 Margin stocks 70 80 65 55 65 50 14 Convertible bonds 50 60 50 50 50 50 15 Short sales 70 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 of the option plus 20 nors pursuant to the Securities Exchange Act of 1934, limit the amount of credit percent of the market value of the stock underlying the option (or 15 percent in the that can be used to purchase and carry "margin securities" (as defined in the case 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 • November 1992 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1991 1992 AAccccoouunntt 11998899 11999900 Sept. Oct. Nov. Dec. Jan." Feb." Mar." Apr." May" June SAIF-insured institutions 1 Assets 1,249,055 1,084,821 949,006 937,787 934,539 919,979 909,077 906,209 883,482 872,088 870,396 861,535 2 Mortgages 733,729 633,385 566,419 561,152 557,513 551,322 545,682 541,686 529,149 524,942 521,894 516,679 3 Mortgage-backed securities 170,532 155,228 135,246 134,895 133,341 129,461 127,371 127,766 125,402 124,930 124,388 122,536 4 Contra-assets to mortgage assets1 25,457 16,897 13,128 12,445 12,303 12,307 11,916 11,605 10,973 10,955 11,310 11,262 5 Commercial loans 32,150 24,125 18,166 17,765 17,147 17,139 16,827 16,050 15,400 15,069 14,607 14,036 6 Consumer loans 58,685 48,753 42,422 43,064 42,763 41,775 40,903 39,954 38,740 38,027 37,822 37,422 7 Contra-assets to nonmortgage loans1. 3,592 1,939 1,398 1,373 1,150 1,239 1,115 1,115 992 980 882 947 8 Cash and investment securities 166,053 146,644 125,911 120,824 123,380 120,077 118,611 121,970 119,410 116,291 120,596 119,383 9 Other 116,955 95,522 75,368 73,905 73,849 73,751 72,714 71,503 67,346 64,764 63,080 63,688 10 Liabilities and net worth 1,249,055 1,084,821 949,006 937,787 934,539 919,979 909,077 906,209 883,482 872,088 870,396 861,535 11 Savings capital 945,656 835,496 749,376 741,360 737,555 731,937 721,099 717,026 703,809 689,777 688,199 682,537 12 Borrowed money 252,230 197,353 132,727 127,356 125,147 121,923 119,965 118,554 110,031 111,262 110,126 108,941 13 FHLBB 124,577 100,391 68,816 66,609 66,005 65,842 62,642 63,138 62,628 62,268 61,439 62,759 14 Other 127,653 96,962 63,911 60,747 59,142 56,081 57,323 55,416 47,403 48,994 48,687 46,182 15 Other 27,556 21,332 19,080 20,381 21,690 17,560 19,003 21,391 18,364 18,944 19,687 17,721 16 Net worth 23,612 30,640 47,824 48,690 50,148 48,559 49,010 49,238 51,278 52,105 52,384 52,336 1. Contra-assets are credit-balance accounts thai must be subtracted from the plus interest. corresponding gross asset categories to yield net asset levels. Contra-assets to NOTE. Components do not sum to totals because of rounding. Data for credit mortgage assets, mortgage loans, contracts, and pass-through securities—include unions and life insurance companies have been deleted from this table. Starting in loans in process, unearned discounts and deferred loan fees, valuation allowances the December 1991 issue, data for life insurance companies are shown in a special for mortgages "held for sale," and specific reserves and other valuation allow- table of quarterly data. ances. Contra-assets to nonmortgage loans include loans in process, unearned SOURCE. Savings Association Insurance Fund (SAIF)-insured institutions: discounts and deferred loan fees, and specific reserves and valuation allowances. Estimates by the Office of Thrift Supervision (OTS) for all institutions insured by 2. Includes holding of stock in Federal Home Loan Bank and finance leases the SAIF and based on the OTS thrift institution Financial Report. 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year Fiscal Fiscal Fiscal Type of account or operation year year year 1989 1990 1991 Mar. Apr. May June July U.S. budget1 1 Receipts, total 990,701 1,031,308 1,054,265 72,917 138,430 62,244 120,909 79,074 2 On-budget 727,037r 749,654" 760,382 46,353 103,405 36,867 91,427 55,971 3 Off-budget 263,664 281,654 293,883 26,564 35.025 25,377 29,482 23,103 4 Outlays, total 1,144,020 1,251,766 1,323,757 123,629 123,821 109,029 117,126 122,220" 5 On-budget 933,109" 1,026,701" 1,082,072 100,700 102,795 86,340 102,318 99,932" 6 Off-budget 210,911 225,064 241,685 22,929 21.026 22,690 14,807 22,289 7 Surplus or deficit (-), total -153,319 -220,458 -269,492 -50,712 14,609 -46,786 3,783 -43,146" 8 On-budget -206,072 -277,047 -321,690 -54,347 610 -49,473 -10,891 -43,961" 9 Off-budget 52,753 56,590 52,198 3,635 13,999 2,687 14,675 814 Source of financing (total) 10 Borrowing from the public 141,806 220,101 276,802 50,138 6,292 33,840 22,318 38,841 11 Operating cash (decrease, or increase (-)) . 3,425 818 -1,329 -2,961 -21,262 20,977 -26,919 9,542 12 Other ^ -451 -5,981 3,535 361 -8,031 818 5,314" MEMO 13 Treasury operating balance (level, end of period) 40,973 40,155 41,484 19,843 41,105 20,128 47,047 37,505 14 Federal Reserve Banks 13,452 7,638 7,928 6,846 4,692 5,583 13,630 6,923 15 Tax and loan accounts 27,521 32,517 33,556 12,997 36,413 14,545 33,417 30,581 1. In accordance with the Balanced Budget and Emergency Deficit Control Act in the International Monetary Fund (IMF); loans to the IMF; other cash and of 1985, all former off-budget entries are now presented on-budget. Federal monetary assets; accrued interest payable to the public; allocations of SDRs; Financing Bank (FFB) activities are now shown as separate accounts under the deposit funds; miscellaneous liability (including checks outstanding) and asset agencies that use the FFB to finance their programs. The act also moved two accounts; seigniorage; increment on gold; net gain or loss for U.S. currency social security trust funds (federal old-age survivors insurance and federal valuation adjustment; net gain or loss for IMF loan-valuation adjustment; and disability insurance) off budget. The Postal Service is included as an off-budget profit on sale of gold. item in the Monthly Treasury Statement beginning in 1990. SOURCES. Monthly Treasury Statement of Receipts and Outlays of the U.S. 2. Includes special drawing rights (SDRs); reserve position on the U.S. quota Government (MTS) and the Budget of the U.S. Government. 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 SSoouurrccee oorr ttyyppee year year 1990 1991 1992 1992 11999900 11999911 H2 HI H2 HI June July Aug. RECEIPTS 1 All sources 1,031,308 1,054,265 503,123 540,504 519,293 560,647 120,909 79,074 78,216 2 Individual income taxes, net 466,884 467,827 230,745 232,389 233,983 235,244 53,072 35,098 34,715 3 Withheld 388,384 404,152 207,469 193,440 210,552 198,868 33,570 34,034 32,584 4 Presidential Election Campaign Fund 32 32 3 31 1 19 -4 1 8 5 Nonwithheld 151,285 142,693 31,728 109,405 33,2% 110,995 21,104 2,920 3,184 6 Refunds 72,817 79,050 8,455 70,487 9,867 74,639 1,599 1,857 1,061 Corporation income taxes 7 Gross receipts 110,017 113,599 54,044 58,903 54,016 61,681 21,631 3,890 22,,444433 8 Refunds 16,510 15,513 7,603 7,904 7,956 8,056 848 1,158 864 9 Social insurance taxes and contributions, net 380,047 396,011 178,468 214,303 186,839 224,554 38,380 31,722 33,139 10 Employment taxes and contributions 353,891 370,526 167,224 199,727 175,802 208,110 37,355 29,514 28,9% 11 Self-employment taxes and contributions3 21,795 25,457 2,638 22,150 3,306 20,433 4,409 0 0 12 Unemployment insurance 21,635 20,922 8,9% 12,2% 8,721 14,070 642 1,770 3,762 13 Other net receipts 4,522 4,563 2,249 2,279 2,317 2,375 384 438 382 14 Excise taxes 35,345 42,430 17,535 20,703 24,690 22,358 4,226 3,704 4,051 15 Customs deposits 16,707 15,921 8,568 7,488 8,694 8,145 1,477 1,658 1,579 16 Estate and gift taxes 11,500 11,138 5,333 5,631 5,521 5,714 842 %2 827 17 Miscellaneous receipts5 27,316 22,852 16,032 8,991 13,508 11,005 2,127 3,198 2,325 OUTLAYS 18 All types 1,251,776 1,323,757 647,461 632,153 694,474 704,590R 117,126 122,220R 102,918 19 National defense 299,331 272,514 149,497 122,089 147,531 146,%3 25,851 30,180 21,238 20 International affairs 13,762 16,167 8,943 7,592 7,651 8,464 930 684 186 21 General science, space, and technology 14,444 15,946 8,081 7,4% 8,473 7,952 951 1,417 1,352 22 Energy 2,372 2,511 1,222 1,235 1,536 1,442 140 275 508 23 Natural resources and environment 17,067 18,708 9,933 8,324 11,221 8,625 1,626 1,677 1,516 24 Agriculture 11,958 14,864 6,878 7,684 7,335 7,514 678 468 381 25 Commerce and housing credit 67,160 75,639 37,491 17,992 36,579 15,583 1,719 846r -2,721 26 Transportation 29,485 31,531 16,218 14,748 17,094 15,681 3,352 3,144 2,818 27 Community and regional development 8,498 7,432 3,939 3,552 3,784 3,901 638 676 570 28 Education, training, employment, and social services 38,497 41,479 18,988 21,234 21,104 23,224 3,938 3,125 3,492 29 Health 57,716 71,183 31,424 35,608 41,458 43,698 8,635 7,164 7,593 30 Social security and medicare 346,383 373,495 176,353 190,247 193,156 205,443 37,446 35,553 33,593 31 Income security 147,314 171,618 75,948 88,778 87,923 105,435 13,565 18,300 14,613 32 Veterans benefits and services 29,112 31,344 15,479 14,326 17,425 15,597 2,527 4,010 1,369 33 Administration of justice 10,004 12,295 5,265 6,187 6,586 7,438 1,400 1,217 1,155 34 General government 10,724 11,358 6,976 5,212 6,821 5,538r 1,456 411 917 35 Net interest6 184,221 195,012 94,650 98,556 99,405 100,324 15,447 16,670 17,274 36 Undistributed offsetting receipts' -36,615 -39,356 -19,829 -18,702 -20,435 -18,229 -3,172 -3,597 -2,937 1. Functional details do not sum to total outlays for calendar year data because 5. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts. revisions to monthly totals have not been distributed among functions. Fiscal year 6. 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 1993. disability fund. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Nonfinancial Statistics • November 1992 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars, end of month Item June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 1 Federal debt outstanding 3,176 3,266 3,397 3,492 3,563 3,683 3,820 3,897 2 Public debt securities 3,144 3,233 3,365 3,465 3,538 3,665 3,802 3,881 3,985 3 Held by public 2,369 2,438 2,537 2,598 2,643 2,746 2,833 2,918 n.a.r 4 Held by agencies 775 796 828 867 895 920 969 964 n.a.r 5 Agency securities 32 33 33 27 25 18 19 16 n.a.r 6 Held by public 32 33 32 26 25 18 19 16 n.a.r 7 Held by agencies 0 0 0 0 0 0 0 0 n.a.r 8 Debt subject to statutory limit. 3,077 3,161 3,282 3,377 3,450 3,569 3,707 3,784 3,891 1 9 0 P O u th b e li r c d d e e b b t t 1 securities 3,077 0 3,161 0 3,281 0 3,377 0 3,45 0 0 3,56 0 9 3,70 0 6 3,783 0 3,89 0 0 11 MEMO: Statutory debt limit .. 3,123 3,195 4,145 4,145 4,145 4,145 4,145 4,145 1. Consists of guaranteed debt of Treasury and other federal agencies, specified SOURCES. U.S. Treasury Department, Monthly Statement of the Public Debt of participation certificates, notes to international lending organizations, and District the United States and Treasury Bulletin. of Columbia stadium bonds. 1.41 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership Billions of dollars, end of period 1991 1992 Type and holder 11998888 11998899 11999900 11999911 Q3 Q4 Q1 Q2 1 Total gross public debt 2,684.4 2,953.0 3,364.8 3,801.7 3,665.3 3,801.7 3,881.3 3,984.7 By type 2 Interest-bearing 2,663.1 2,931.8 3,362.0 3,798.9 3,662.8 3,798.9 3,878.5 3,981.8 3 Marketable 1,821.3 1,945.4 2,195.8 2,471.6 2,390.7 2,471.6 2,552.3 2,605.1 4 Bills 414.0 430.6 527.4 590.4 564.6 590.4 615.8 618.2 5 Notes 1,083.6 1,151.5 1,265.2 1,430.8 1,387.7 1,430.8 1,477.7 1,517.6 6 7 No B n o m n a d r s k etable1 8 3 4 0 1 8 . . 8 9 9 3 8 4 6 8 . . 4 2 1,1 3 6 8 6 8 . . 2 2 1, 4 3 3 2 5 7 . . 5 2 1,2 4 7 2 2 3 . . 1 4 1, 4 32 3 7 5 . . 2 5 1, 4 3 4 26 3 . . 2 8 1, 4 3 5 7 4 6 . . 3 7 8 State and local government series 151.5 163.3 160.8 159.7 158.1 159.7 157.8 161.9 9 Foreign issues 6.6 6.8 43.5 41.9 41.6 41.9 42.0 38.7 10 Government 6.6 6.8 43.5 41.9 41.6 41.9 42.0 38.7 11 Public .0 .0 .0 .0 .0 .0 .0 .0 1 1 2 3 G Sa o v v i e n r g n s m b e o n n t d a s c a c n o d u n n t o s t e e r s ies3 5 1 7 0 5 7 . . 6 6 6 1 9 1 5 5 . . 6 7 8 1 1 2 3 4 . . 8 1 9 1 5 3 9 5 . . 2 9 9 1 0 3 8 3 . . 4 5 9 1 5 3 9 5 . . 2 9 9 1 5 3 6 9 . . 1 9 1.0 1 0 4 2 3 . . 5 2 14 Non-interest-bearing 21.3 21.2 2.8 2.8 2.5 2.8 2.8 2.9 By holder 4 15 U.S. Treasury and other federal agencies and'trust funds 589.2 707.8 828.3 968.7 919.6 968.7 963.7 16 Federal Reserve Banks ' 238.4 228.4 259.8 281.8 264.7 281.8 267.6 17 Private investors 1,858.5 2,015.8 2,288.3 2,563.2 2,489.4 2,563.2 2,664.0 18 Commercial banks 184.9 164.9 171.5 233.9 216.9 233.9 240.0 19 Money market funds 11.8 14.9 45.4 80.0 64.5 80.0 84.8 20 Insurance companies 118.6 125.1 142.0 172.9 162.9 172.9 175.0 n, i. 21 Other companies 87.1 93.4 108.9 150.8 142.0 150.8 166.0 22 State and local treasuries 471.6 487.5 490.4 498.8 491.4 498.8 500.0 Individuals 23 Savings bonds 109.6 117.7 126.2 138.1 135.4 138.1 142.0 2 2 2 4 5 6 O O Fo t t h h re e e i r r g n m se a i c s n u c d r e i l t l i i a n e n t s e e r o n u a s t io in n v a e l stors6 4 3 7 3 6 3 9 2 . . . 0 2 2 3 5 9 2 9 8 0 2 . . . 7 7 9 4 6 1 7 2 0 4 1 7 . . . 5 7 6 4 7 1 0 5 2 9 3 5 . . . 5 4 8 4 7 1 1 3 2 4 9 2 . . . 8 4 1 4 7 1 0 5 2 9 3 5 . . . 5 4 8 4 7 1 6 6 2 2 8 6 . . . 1 0 1 1. Includes (not shown separately) securities issued to the Rural Electrification 5. Consists of investments of foreign balances and international accounts in the Administration, depository bonds, retirement plan bonds, and individual retire- United States. ment bonds. 6. Includes savings and loan associations, nonprofit institutions, credit unions, 2. Nonmarketable series denominated in dollars, and series denominated in mutual savings banks, corporate pension trust funds, dealers and brokers, certain foreign currency held by foreigners. U.S. Treasury deposit accounts, and federally sponsored agencies. 3. Held almost entirely by U.S. Treasury and other federal agencies and trust SOURCES. U.S. Treasury Department, data by type of security, Monthly funds. Statement of the Public Debt of the United States; data by holder, the Treasury 4. Data for Federal Reserve Banks and U.S. government agencies and trust Bulletin. 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 1992 1992, week ending IItteemm May June July July 1 July 8 July 15 July 22 July 29 Aug. 5 Aug. 12 Aug. 19 Aug. 26 IMMEDIATE TRANSACTIONS2 By type of security U.S. Treasury securities 1 Bills 41,651 39,314 39,895R 45,977 49,046 39,343 34,783 38,145 37,082 32,442 35,450 38,131 Coupon securities, by maturity 2 Less than 3.5 years 50,118 37,879 42,881 38,519 49,640 35,197 39,302 48,717 45,115 47,289 43,465 50,806 3 3.5 to 7.5 years 34,305 31,360 43,398 37,266 46,878 38,142 40,842 50,409 41,506 34,995 37,334 37,657 4 7.5 to 15 years 18,162 13,912 19,663 15,414 20,540 17,951 16,097 23,474 23,702 28,207 23,075 18,688 5 15 years or more 14,862 11,926 16,132 11,163 18,470 14,853 14,071 18,447 16,508 19,111 18,962 14,264 Federal agency securities Debt, maturing in 6 Less than 3.5 years 3,977 4,461 4,334 6,398 4,753 3,950 3,942 4,264 4,579 3,938 4,342 4,318 7 3.5 to 7.5 years 539 513 670 433 643 723 530 752 859 865 566 539 8 7.5 years or more 514 553 646 494 986 445 521 783 517 451 446 676 Mortgage-backed 9 Pass-throughs 12,941 14,203 13,795R 12,255 14,966 17,221 13,067 11,837 10,368 17,008 12,948 10,861 10 All others 3,586 3,864 4,105R 4,356 3,165 4,156 3,637 5,673 2,985 3,171 4,645 4,122 By type of counterparty Primary dealers and brokers 11 U.S. Treasury securities 99,351 83,448 101,225R 86,736 110,814 91,535 93,589 112,794 103,687 103,519 100,019 104,664 Federal agency securities 12 Debt 1,023 1,007 1,097 1,310 1,226 1,163 798 1,207 1,035 1,146 998 766 13 Mortgage-backed 7,308 8,382 8,000* 7,998 8,478 9,379 8,072 7,132 5,584 9,216 7,489 6,913 Customers 14 U.S. Treasury securities 59,747 50,942 60,744 61,602 73,760 53,951 51,506 66,398 60,227 58,525 58,267 54,883 Federal agency securities 15 Debt 4,007 4,520 4,554 6,016 5,156 3,955 4,195 4,593 4,921 4,108 4,354 4,768 16 Mortgage-backed 9,219 9,686 9,900" 8,613 9,653 11,998 8,632 10,377 7,768 10,963 10,104 8,070 FUTURES AND FORWARD TRANSACTIONS4 By type of deliverable security U.S. Treasury securities 17 Bills 3,584 3,562 3,567R 2,629 5,153 2,895 3,878 3,435 2,096 2,501 2,588 2,467 Coupon securities, by maturity 18 Less than 3.5 years 2,327 1,715 1,762 1,760 2,206 1,480 1,272 2,015 2,174 2,468 2,104 2,341 19 3.5 to 7.5 years 1,362 1,469 1,345 1,938 1,129 1,224 1,173 1,663 1,420 1,217 1,060 1,280 20 7.5 to 15 years 1,281 1,319 1,969 1,854 1,746 1,523 1,713 2,244 3,537 2,529 2,714 2,642 21 15 years or more 8,763 6,576 9,620 5,568 10,402 7,986 8,200 12,524 10,453 10,359 10,025 11,091 Federal agency securities Debt, maturing in 22 Less than 3.5 years 27 45 20 27 42 13 19 14 9 11 185 31 23 3.5 to 7.5 years 42 63 61 16 32 57 53 109 47 120 329 87 24 7.5 years or more 19 22 37 12 69 10 17 72 10 18 115 21 Mortgage-backed 25 Pass-throughs3 13,257 12,873 16,949 12,984 18,922 20,520 12,996 16,331 17,486 21,058 13,493 1144,,008877 26 Others 2,441 2,657 3,259 2,384 2,199 3,951 3,424 3,536 2,977 2,306 3,207 2,941 OPTIONS TRANSACTIONS5 By type of underlying security U.S. Treasury, coupon securities, by maturity 27 Less than 3.5 years 1,222 1,255 11,,555500"" 1,502 2,193 1,120 1,575 1,518 1,377 1,463 1,434 1,817 28 3.5 to 7.5 years 265 317 635R 534 1,119 598 463 632 251 572 226 688 29 7.5 to 15 years 546 484 685R 543 734 563 414 1,051 728 1,014 641 1,693 30 15 years or more 2,803 1,576 2,520 1,311 2,544 1,820 2,164 3,590 3,037 3,247 2,239 3,548 Federal agency, mortgagebacked securities 31 Pass-throughs 404 389 499" 570 713 447 227 716 302 290 257 456 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 futures transac- to delivery. Forward contracts for U.S. Treasury securities and federal agency tions are reported at principal value, which does not include accrued interest; debt securities are included when the time to delivery is more than five business options transactions are reported at the face value of the underlying securities. days. Forward contracts for mortgage-backed agency securities are included Dealers report cumulative transactions for each week ending Wednesday. when the time to 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 agency NOTE. In tables 1.42 and 1.43, "n.a." indicates that data are not published securities include purchases and sales for which delivery is scheduled in thirty days or because of insufficient activity. less. 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 • November 1992 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 1992 1992, week ending Item May June July July 1 July 8 July 15 July 22 July 29 Aug. 5 Aug. 12 Aug. 19 Positions2 NET IMMEDIATE POSITIONS3 By type of security U.S. Treasury securities 1 Bills 9,333 9,816 10,399 17,190 15,914 9,161 7,095 9,400 7,100 6,846 7,888 Coupon securities, by maturity 2 Less than 3.5 years -4,079 -7,838 -7,674 -4,608 -7,164 -8,788 -11,293 -4,628 -5,088 -789 --44,,990033 3 3.5 to 7.5 years -5,501 -6,907 -7,629 -7,621 -3,168 -7,856 -12,078 -7,137 -8,602 -9,727 -11,509 4 7.5 to 15 years -2,882 -3,706 -6,825 -3,377 -4,242 -6,876 -7,473 -8,507 -9,255 -5,464 -4,950 5 15 years or more -792 -177 2,970 -606 1,037 1,920 3,799 4,964 5,321 5,100 6,924 Federal agency securities Debt, maturing in 6 Less than 3.5 years 4,744 5,265 4,944 4,613 4,614 5,540 5,950 3,603 5,349 6,571 66,,554400 7 3.5 to 7.5 years 1,833 2,178 2,908 2,444 2,723 2,888 3,037 2,941 3,288 3,226 3,267 8 7.5 years or more 3,229 3,482 3,481 3,556 3,438 3,442 3,427 3,506 3,833 4,219 4,117 Mortgage-backed 9 Pass-throughs 29,282 31,088 30,275r 20,679 30,097 31,907 32,937 30,082 21,341 34,285 38,339 10 All others. 18,134 18,708 22,090 21,273 21,146 22,126 22,229 22,447 23,942 23,490 21,812 Other money market instruments 11 Certificates of deposit 3,093 2,796 2,811 3,560 2,494 2,999 2,153 3,416 3,074 3,666 4,701 12 Commercial paper 6,628 6,416 6,021 7,621 7,766 6,511 4,343 5,376 5,524 5,552 5,191 13 Bankers acceptances 1,222 1,045 1,158 896 1,272 1,378 1,010 1,074 935 892 1,207 FUTURES AND FORWARD POSITIONS5 By type of deliverable security U.S. Treasury securities 14 Bills 131 2,093 -7,238 108 -6,664 -8,457 -7,339 -8,131 -5,181 -6,994 -8,876 Coupon securities, by maturity 15 Less than 3.5 years 2,291 2,178 2,260 2,146 2,021 2,426 2,417 2,287 1,931 1,912 775577 16 3.5 to 7.5 years 4,256 3,201 3,031 3,047 2,440 2,739 4,004 3,104 2,458 3,333 4,042 17 7.5 to 15 years 814 -493 -450 -1,774 -1,826 -567 -6 -14 2,361 936 -687 18 15 years or more -7,131 -7,518 -7,870 -6,495 -7,546 -7,570 -7,797 -8,341 -9,349 -9,200 -9,381 Federal agency securities Debt, maturing in 19 Less than 3.5 years 52 17 59 -7 82 77 84 22 -10 32 --5544 20 3.5 to 7.5 years -46 -19 -79 10 -37 -69 -84 -166 15 133 -143 21 7.5 years or more -3 -11 45 -6 4 22 100 54 73 -124 -70 Mortgage-backed 22 Pass-throughs -18,064 -23,361 -20,358 -12,879 -22,244 -23,070 -22,881 -17,243 -10,082 -22,147 -27,277 23 All others 948 2,486 4,721 2,771 3,665 4,680 6,636 4,066 5,123 5,763 6,326 24 Certificates of deposit - I96,067r -222,803r -232,567r -232,236r -228,303 -223,218 -243,332 -234,002 -237,681 -243,912 -254,808 Financing6 Reverse repurchase agreements 25 Overnight and continuing 205,626 208,440 214,805 212,891 211,229 217,246 215,337 212,253 226,800 219,461 227,464 26 Term 295,243 297,759 315,020 261,585 300,931 304,005 324,976 334,442 326,783 343,506 307,694 Repurchase agreements 27 Overnight and continuing 336,107 339,382 356,881 338,500 350,817 368,779 363,769 348,804 349,820 353,449 375,964 28 Term 261,671 266,179 287,022 227,376 261,637 271,877 299,783 320,243 297,761 320,519 293,181 Securities borrowed 29 Overnight and continuing 81,269 84,573 92,740 85,181 91,160 89,215 95,654 94,818 96,914 97,500 97,303 30 Term 31,415 35,187 37,846 35,283 37,669 37,355 37,908 39,306 36,142 38,794 39,853 Securities loaned 31 Overnight and continuing 7,746 7,627 8,173 7,487 7,422 6,868 9,246 8,974 9,158 9,120 8,651 32 Term 1,542 801 1,008 515 596 554 756 2,212 955 941 1,431 Collateralized loans 33 Overnight and continuing 16,610 14,879 17,919 15,014 18,039 18,033 17,625 18,160 18,744 20,838 19,724 MEMO: Matched book7 Reverse repurchase agreements 34 Overnight and continuing 146,537 148,092 152,606r 150,930 151,389 152,761 151,528 154,038 155,924 151,233 115566,,888833 35 Term 250,339 255,829 269,912r 227,724 258,795 262,161 278,373 283,182 280,990 2%,730 258,105 Repurchase agreements 36 Overnight and continuing 186,552 187,957 194,278r 189,749 193,057 196,762 198,476 192,709 182,920 183,944 117799,,665577 37 Term 197,971 200,805 212,775r 170,297 195,505 200,788 220,184 235,497 230,950 251,880 225,325 1. Data for positions and financing are obtained from reports submitted to the delivery. Forward contracts for U.S. Treasury securities and federal agency debt Federal Reserve Bank of New York by the U.S. government securities dealers on securities are included when the time to delivery is more than five business days. its published list of primary dealers. Weekly figures are close-of-business Wednes- Forward contracts for mortgage-backed agency 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 agency 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 such securities as collateralized mortgage obligations (CMOs), real in the financing breakdowns given above. The reverse repurchase and repurchase estate mortgage investment conduits (REMICs), interest-only securities (IOs), numbers are not always equal because of the "matching" of securities of different and principal-only securities (POs). values or types of collateralization. 5. Futures positions are standardized contracts arranged on an exchange. NOTE. Data for futures and forward commercia lpaper 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 1992 AAggeennccyy 11998888 11998899 11999900 11999911 Feb. Mar. Apr. May June 1 Federal and federally sponsored agencies 381,498 411,805 434,668 442,772 445,895 445,646 449,472 449,561 0 2 Federal agencies 35,668 35,664 42,159 41,035 40,791 41,322 40,788 40,535 40,388 3 Defense Department1 8 7 7 7 7 7 7 7 7 4 Export-Import Bank2, 11,033 10,985 11,376 9,809 9,809 8,644 8,644 8,644 8,156 5 Federal Housing Administration4 150 328 393 397 372 421 419 427 432 6 Government National Mortgage Association certificates of participation 0 0 0 0 0 0 0 0 0 7 Postal Service 6,142 6,445 6,948 8,421 8,421 9,771 9,771 9,771 10,123 8 Tennessee Valley Authority 18,335 17,899 23,435 22,401 22,182 22,479 21,947 21,686 21,670 9 United States Railway Association 0 0 0 0 0 0 0 0 0 10 Federally sponsored agencies7 345,830 375,407 392,509 401,737 405,104 404,324 408,684 409,026 0 11 Federal Home Loan Banks 135,836 136,108 117,895 107,543 106,341 106,511 107,011 106,368 106,050 12 Federal Home Loan Mortgage Corporation 22,797 26,148 30,941 30,262 26,824 25,154 25,233 27,612 0 13 Federal National Mortgage Association 105,459 116,064 123,403 133,937 141,315 141,315 145,856 144,655 149,013 14 Farm Credit Banks8 53,127 54,864 53,590 52,199 51,867 52,651 52,368 52,080 51,805 15 Student Loan Marketing Association 22,073 28,705 34,194 38,319 39,280 39,216 38,739 38,885 38,020 16 Financing Corporation10 5,850 8,170 8,170 8,170 8,170 8,170 8,170 8,170 0 17 Farm Credit Financial Assistance Corporation 690 847 1,261 1,261 1,261 1,261 1,261 1,261 0 18 Resolution Funding Corporation12 0 4,522 23,055 29,9% 29,9% 29,9% 29,9% 29,9% 0 MEMO 19 Federal Financing Bank debt1 142,850 134,873 179,083 185,576 182,737 185,849 186,879 179,617 0 Lending to federal and federally sponsored agencies 20 Export-Import Bank3 11,027 10,979 11,370 9,803 9,803 8,638 8,638 8,638 88,,115500 21 Postal Service6 5,892 6,195 6,698 8,201 8,201 9,551 9,551 9,551 9,903 22 Student Loan Marketing Association 4,910 4,880 4,850 4,820 4,820 4,820 4,820 4,820 4,820 23 Tennessee Valley Authority 16,955 16,519 14,055 10,725 10,025 10,025 9,325 9,025 9,025 24 United States Railway Association6 0 0 0 0 0 0 0 0 0 Other lending14 25 Farmers Home Administration 58,496 53,311 52,324 48,534 48,534 48,534 47,634 45,434 44,784 26 Rural Electrification Administration 19,246 19,265 18,890 18,562 18,494 18,424 18,440 18,473 18,199 27 Other 26,324 23,724 70,8% 84,931 82,860 85,857 88,471 83,676 85,%7 1. Consists of mortgages assumed by the Defense Department 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 Mortgage Association acting as trustee for the Farmers Home Admin- borrowing in October 1989. istration, the Department of Health, Education, and Welfare, the Department of 13. The FFB, which began operations in 1974, is authorized to purchase or sell Housing and Urban Development, the Small Business Administration, and the obligations issued, sold, or guaranteed by other federal agencies. Because FFB Veterans' 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. are loans guaranteed by numerous agencies, with the guarantees of any one 8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, agency generally being small. The Farmers Home Administration entry consists shown in line 17. exclusively of agency assets, while the Rural Electrification Administration entry 9. Before late 1982, the Association obtained financing through the Federal consists of 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 • November 1992 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1992 Type of issue or issuer, or use 1990 1991 Jan.r Feb. Mar. Apr. May June July Aug. 1 All issues, new and refunding1. 113,646 120,339 154,402 13,426 14,032 15,956 15,141 14,155 20,501 16,184 18,006 By type of issue 2 General obligation 35,774 39,610 55,100 4,937 6,102 6,212 4,455 5,429 7,213 6,808 6,451 3 Revenue 77,873 81,295 99,302 8,489 7,930 9,744 10,686 8,726 13,288 9,376 11,555 By type of issuer 4 5 S S t p a e t c e i al district or statutory authority2 7 1 1 1 , , 0 8 2 1 2 9 7 1 2 5 , , 6 1 6 4 1 9 2 8 4 0 , , 9 6 3 1 9 4 8 1 , , 5 0 3 4 7 7 6 3 , , 6 0 0 2 5 3 r 3 7, , 5 1 1 7 1 4 9,8 5 0 7 2 5 8 1 , , 2 1 5 6 1 5 1 2 2 , , 0 8 6 9 3 4 2 8, , 8 8 3 3 8 6 n 1, . 9 a 3 . 3 6 Municipality, county, or township 30,805 32,510 48,849 3,842 4,404 5,271 4,764 4,739 5,544 4,510 n.a. 7 Issues for new capital, total 84,062 103,235 116,953 7,941 9,467 10,637 9,020 9,259 14,096 7,565 11,993 By use of proceeds 8 Education 15,133 17,042 21,121 2,139 2,604 1,075 2,208 1,651 2,132 1,747 1,737 9 Transportation 6,870 11,650 13,395 1,314 1,996 1,412 921 1,669 2,618 571 2,130 10 Utilities and conservation 11,427 11,739 21,039 2,096 800 2,104 1,380 771 1,851 629 2,604 11 Social welfare 16,703 23,099 25,648 1,088 1,925 1,811 2,582 2,045 4,266 887 767 12 Industrial aid 5,036 6,117 8,376 301 123 528 558 133 724 91 503 13 Other purposes 28,894 34,607 30,275 1,003 2,019 3,707 1,371 2,990 2,505 3,640 4,252 1. Par amounts of long-term issues based on date of sale. SOURCES. Investment Dealer's Digest beginning April 1990. Securities Data1 2. Since 1986, has included school districts. Bond Buyer Municipal Data Base beginning 1986. Public Securities Association for earlier data. 1.46 NEW SECURITY ISSUES U.S. Corporations Millions of dollars 1991 1992 Type of issue, offering, or issuer 11998899 11999900 11999911 Dec. Jan. Feb. Mar. Apr. May June July 1 All issues 377,836 339,052 455,291 32,391 45,037 37,464 38,303 28,724 45,286 47,808r 42,377 2 Bonds2 319,965 298,814 389,933 24,871 38,353 27,928 31,946 23,386 38,370 38,811r 35,900 By type of offering 3 Public, domestic 179,694 188,778 287,041 23,326 34,682 26,301 29,417 22,012 35,398 35,784 38,000 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 1,544 3,671 1,626 2,529 1,373 2,972 3,027r 2,200 By industry group 6 Manufacturing 76,175 52,635 85,535 4,880 7,229 3,910 8,955r 4,150 6,236 7,223r 5,197 7 Commercial and miscellaneous 49,465 40,018 37,809 1,953 2,751 1,664 3,670r 2,301 2,472 1,630 3,005 8 Transportation 10,032 12,711 13,628 150 455 1,004 641 190 621 899 766 9 Public utility 18,656 17,621 23,994 2,238 3,836 3,569 1,896 3,462 3,041 4,251 6,401 10 Communication 8,461 6,597 9,331 1,085 2,467 416 725 1,205 1,590 1,028 2,065 11 Real estate and financial 157,176 169,231 219,637 14,564 21,616 17,364 16,060 12,078 24,410 23,779r 18,466 12 Stocks2 57,870 40,165 75,467 7,520 6,684 9,536 6,357 5,338 6,916 8,997 6,477 By type of offering 13 Public preferred 6,194 3,998 17,408 2,771 739 4,306 625 334 1,552 2,916 2,413 1 1 4 5 P C r o i m va m te o n p lacement3 2 2 5 6 , , 6 0 4 3 7 0 1 1 6 9 , ,4 7 4 3 3 6 4 1 7 0 , , 8 1 6 0 0 9 4 n , . 7 a 4 . 9 5 n , . 9 a 4 . 5 5 n , . 2 a 3 . 0 5 n , . 7 a 3 . 2 5 n , . 0 a 0 . 4 5 n , . 3 a 6 . 4 6 n ,0 .a 8 . 1 4 n , . 0 a 6 . 4 By industry group 16 Manufacturing 9,308 5,649 24,154 2,684 2,098 2,541 2,637 1,523 2,499 3,000 857 17 Commercial and miscellaneous 7,446 10,171 19,418 2,535 993 3,194 1,595 1,162 2,010 1,070 1,599 18 Transportation 1,929 369 2,439 0 426 78 193 n.a. 176 1,064 n.a. 19 Public utility 3,090 416 3,474 233 268 489 704 577 826 610 564 20 Communication 1,904 3,822 475 17 163 n.a. 53 333 12 n.a. n.a. 21 Real estate and financial 34,028 19,738 25,507 2,014 2,736 3,234 1,175 1,691 1,324 3,254 3,457 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 Dec. Jan Feb. Mar. Apr. May June July 1 Sales of own shares2 344,420 464,488 51,018 66,048 48,015 50,462 52,309 48,127 51,457 55,105 2 Redemptions of own shares 288,441 342,088 39,050 41,917 30,869 35,464 39,302 31,409 37,457 34,402 3 Net sales 55,979 122,400 11,968 24,131 17,146 14,998 13,007 16,718 14,000 20,703 4 Assets4 568,517 807,001 807,077 823,767 846,868 848,842 870,011 897,211 911,218 951,758 5 Cash5 48,638 60,937 60,292 62,289 64,022 64,216 67,632 67,270 69,508 72,833 6 Other 519,875 746,064 746,785 761,478 782,846 781,626 802,379 829,941 841,710 878,925 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 assets exclude both 5. Includes all U.S. Treasury securities and other short-term debt securities. 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 Q3 Q4 Ql Q2 Q3 04 Ql Q2r 1 Profits with inventory valuation and capital consumption adjustment 362.8 361.7 346.3 351.4 344.0 349.6 347.3 341.2 347.1 384.0 388.4 2 Profits before taxes 342.9 355.4 334.7 367.0 354.7 337.6 332.3 336.7 332.3 366.1 376.8 3 Profits tax liability 141.3 136.7 124.0 143.0 133.7 121.3 122.9 127.0 125.0 136.4 144.1 4 Profits after taxes 201.6 218.7 210.7 224.0 221.0 216.3 209.4 209.6 207.4 229.7 232.7 5 Dividends 134.6 149.3 146.5 150.6 151.9 150.6 146.2 145.1 143.9 143.6 146.6 6 Undistributed profits 67.1 69.4 64.2 73.4 69.1 65.7 63.2 64.5 63.4 86.2 86.1 7 Inventory valuation -17.5 -14.2 3.1 -32.6 -21.2 6.7 9.9 -4.8 .7 -5.4 -15.5 8 Capital consumption adjustment 37.4 20.5 8.4 17.0 10.5 5.3 5.1 9.3 14.1 23.3 27.0 SOURCE. U.S. Department of Commerce, Survey of Current Business. 1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment Billions of dollars; quarterly data at seasonally adjusted annual rates 1991 1992 IInndduussttrryy 11999900 11999911 11999922'' Ql Q2 Q3 Q4 Ql Q2 Q3 Q41 1 Total nonfarm business 532.61 528.39 551.03 534.27 525.02 526.59 529.87 535.72 540.91 565.16 562.36 Manufacturing 2 Durable goods industries 82.58 77.64 75.70 80.99 79.31 74.94 76.40 74.19 74.26 76.10 78.25 3 Nondurable goods industries 110.04 105.17 101.72 109.84 107.20 102.55 102.66 99.79 97.52 106.69 102.86 Nonmanufacturing 4 Mining 9.88 10.02 9.21 9.94 10.08 10.09 9.99 8.87 9.18 9.76 9.01 Transportation 5 Railroad 6.40 5.95 6.74 5.68 6.25 6.32 5.44 6.65 6.50 7.08 6.74 6 Air 8.87 10.17 9.58 10.89 9.95 9.61 10.41 8.86 9.75 9.60 10.12 7 Other 6.20 6.54 7.34 6.41 6.67 6.63 6.45 6.37 7.27 7.77 7.95 Public utilities 8 Electric 44.10 43.76 48.85 43.62 43.09 43.27 44.75 46.06 48.45 50.16 50.74 9 Gas and other 23.11 22.82 23.85 23.40 22.00 23.25 22.67 22.75 24.19 24.37 24.11 10 Commercial and other2 241.43 246.32 268.05 243.51 240.46 249.94 251.11 262.17 263.80 273.62 272.59 1. Figures are amounts anticipated by business. SOURCE. U.S. Department of Commerce, Survey of Current Business. 2. "Other" consists of construction, wholesale and retail trade, finance and insurance, personal and business services, and communication. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Nonfinancial Statistics • November 1992 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities Billions of dollars, end of period; not seasonally adjusted 1990 1991 1992 AAccccoouunntt 11998888 11998899 11999900 Q3 Q4 Ql Q2 Q3 Q4 Ql ASSETS 1 Accounts receivable, gross1 437.3 462.9 492.9 491.0 492.9 482.9 488.5 484.7 480.3 475.7 2 Consumer 144.7 138.9 133.9 138.9 133.9 127.1 127.5 125.3 121.9 118.4 i Business 245.3 270.2 293.5 288.6 293.5 291.7 295.2 293.2 292.6 291.6 4 Real estate 47.3 53.8 65.5 63.6 65.5 64.1 65.7 66.2 65.8 65.8 5 LESS: Reserves for unearned income 52.4 54.7 57.6 57.9 57.6 57.2 58.0 57.6 55.1 53.6 6 Reserves for losses 7.8 8.4 9.6 9.4 9.6 10.7 11.1 13.1 12.9 13.0 7 Accounts receivable, net 377.1 399.8 425.7 423.8 425.7 415.0 419.3 414.1 412.3 409.1 8 All other 86.6 102.6 113.9 109.3 113.9 118.7 122.8 136.4 149.0 145.5 9 Total assets 463.7 502.4 539.6 533.1 539.6 533.7 542.1 550.5 561.2 554.6 LIABILITIES AND CAPITAL 10 Bank loans 23.9 27.0 31.0 27.0 31.0 35.6 36.9 39.6 42.3 38.0 11 Commercial paper 152.1 160.7 165.3 161.9 165.3 155.5 156.1 156.8 159.5 154.4 Debt 12 Other short-term 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 36.8 35.2 37.5 45.9 37.5 32.4 34.2 36.5 34.5 34.5 15 Not elsewhere classified 147.0 162.7 178.2 170.9 178.2 182.4 184.5 185.0 191.3 189.8 16 All other liabilities 60.0 61.5 63.9 66.2 63.9 64.3 67.1 68.8 69.0 72.0 1/ Capital, surplus, and undivided profits 44.0 55.2 63.7 61.3 63.7 63.4 63.3 63.8 64.8 66.0 18 Total liabilities and capital 463.7 502.4 539.6 533.1 539.6 533.7 542.1 550.5 561.2 554.6 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 1992 Type of credit 1989 1991 Feb. Apr. May June SEASONALLY ADJUSTED 1 Total 481,436 523,023 519,573 525,570 521,174 520,242 519,668 520,804 2 3 R C e o a n l s u e m sta er te 2 1 5 5 3 7 , , 5 7 1 6 8 6 1 6 6 5 1 , , 1 0 4 7 7 0 1 6 5 5 4 , , 3 7 8 8 8 6 1 6 5 6 7 , , 2 2 6 2 7 6 1 6 5 6 7 , , 3 1 2 0 3 6 1 6 5 7 6 , , 0 1 3 0 2 3 1 6 5 6 4 , , 8 9 9 8 8 9 1 6 5 6 4 , , 4 8 3 5 3 0 4 Business 270,152 296,807 299,400 302,077 297,744 297,107 297,781 299,521 NOT SEASONALLY ADJUSTED 5 Total 484,566 526,441 522,853 522,984 521,282 522,017 520,682 524,587 6 Consumer 158,542 161,965 155,677 155,469 155,753 155,106 154,414 154,859 7 Motor vehicles 84,126 75,045 63,413 61,959 60,655 61,717 59,399 60,056 8 Other consumer 54,732 58,818 58,488 58,322 57,697 56,647 56,740 56,634 9 Securitized motor vehicles4 13,690 19,837 23,166 24,016 25,723 24,697 26,529 26,195 10 Securitized other consumer4 5,994 8,265 10,610 11,172 11,678 12,045 11,746 11,974 11 Real estate2 53,781 65,509 65,764 65,527 65,752 66,604 66,650 66,437 12 Business 272,243 298,967 301,412 301,988 299,777 300,307 299,618 303,291 13 Motor vehicles 90,416 92,072 90,319 88,535 88,006 89,105 88,585 90,075 14 Retail5.... 29,505 26,401 22,507 21,745 20,688 20,842 20,143 20,674 15 Wholesale6 34,093 33,573 31,216 30,821 30,799 31,161 30,893 30,505 16 Leasing 26,818 32,098 36,596 35,969 36,519 37,102 37,549 38,8% 17 Equipment 122,246 137,654 141,399 142,562 142,696 143,510 143,431 145,994 18 Retail..... 29,828 31,968 30,962 31,516 31,601 31,824 31,569 32,610 19 Wholesale6 6,452 11,101 9,671 9.646 9,265 9,217 9,116 9,194 20 Leasing 85,966 94,585 100,766 101,400 101,830 102,469 102,746 104,190 21 Other business 57,560 63,774 60,887 62,647 60,876 59,573 59,291 57,586 22 Securitized business assets n.a. 5,467 8,807 8,244 8,199 8,119 8,311 9,636 23 Retail 710 667 576 526 480 206 196 178 24 Wholesale n.a. 3,281 5,285 5,071 5,098 5,137 5,147 5,231 25 Leasing 1,311 1,519 2,946 2.647 2,621 2,776 2,968 4,227 1. Includes finance company subsidiaries of bank holding companies but not of balances are no longer carried on the balance sheets of the loan originator. retailers and banks. Data are before deductions for unearned income and losses. 5. Passenger car fleets and commercial land vehicles for which licenses are Data in this table also appear in the Board's G.20 (422) monthly statistical release. required. For ordering address, see inside front cover. 6. Credit arising from transactions between manufacturers and dealers, that is, 2. Includes all loans secured by liens on any type of real estate, for example, floor plan financing. first and junior mortgages and home equity loans. 7. Includes loans on commercial accounts receivable, factored commercial 3. Includes personal cash loans, mobile home loans, and loans to purchase other accounts, and receivable dealer capital; small loans used primarily for business or types of consumer goods such as appliances, apparel, general merchandise, and farm purposes; and wholesale and lease paper for mobile homes, campers, and recreation vehicles. travel trailers. 4. Outstanding balances of pools upon which securities have been issued; these Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Real Estate A35 1.53 MORTGAGE MARKETS Conventional Mortgages on New Homes Millions of dollars, except as noted 1992 IItteemm 11998899 11999900 11999911 Feb. Mar. Apr. May June July Aug. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms1 1 Purchase price (thousands of dollars) 159.6 153.2 155.0 154.7 167.0 162.5 158.7 154.4 173.5 148.4 2 Amount of loan (thousands of dollars) 117.0 112.4 114.0 110.2 123.2 122.7 119.7 116.1 132.6 113.6 3 Loan-price ratio (percent) 74.5 74.8 75.0 72.9 76.1 76.9 77.3 77.3 77.5 78.7 4 Maturity (years) 28.1 27.3 26.8 24.5 25.2 26.6 26.4 25.0 26.4 24.8 5 Fees and charges (percent of loan amount) 2.06 1.93 1.71 1.84 1.75 1.88 1.69 1.57 1.19 1.62 6 Contract rate (percent per year) 9.76 9.68 9.02 8.29 8.21 8.26 8.30 8.15 7.81 7.72 Yield (percent per year) 7 OTS series3 10.11 10.01 9.30 8.65 8.51 8.58 8.59 8.43 8.00 8.00 8 HUD series4 10.21 10.08 9.20 8.74 8.91 8.78 8.66 8.42 8.14 8.01 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (HUD series)5 10.24 10.17 9.25 8.74 8.85 8.79 8.66 8.56 8.12 8.08 10 GNMA securities6 9.71 9.51 8.59 8.01 8.20 8.10 8.00 7.90 7.63 7.28 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 104,974 113,329 122,837 133,399 136,506 139,808 140,899 142,148 142,465 142,246 12 FHA/VA-insured 19,640 21,028 21,702 21,980 21,902 21,914 21,924 22,218 22,263 22,199 13 Conventional 85,335 92,302 101,135 111,419 114,604 117,894 118,975 119,930 120,202 120,047 Mortgage transactions (during period) 14 Purchases 22,518 23,959 37,202 5,358 7,282 7,258 5,576 5,809 4,191 3,651 Mortgage commitments (during period)7 15 Issued8 n.a. 23,689 40,010 6,589 6,738 5,400 4,392 4,662 4,663 6,053 16 To sell9 n.a. 5,270 7,608 343 1,143 2,219 1,695 1,831 807 10 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)9 17 Total 20,105 20,419 24,131 27,030 28,821 30,077 28,710 28,621 n.a. n.a. 18 FHA/VA-insured 590 547 484 450 446 438 432 426 n.a. n.a. 19 Conventional 19,516 19,871 23,283 26,580 28,376 29,639 28,278 28,195 n.a. n.a. Mortgage transactions (during period) 20 Purchases 78,588 75,517 97,727 12,190 16,001 18,109 16,405 14,222 n.a. n.a. 21 Sales 73,446 73,817 92,478 11,998 13,639 16,139 17,214 13,740 12,210 11,984 Mortgage commitments (during period)10 22 Contracted 88,519 102,401 114,031 23,278 19,098 23,748 13,334 19,114 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 loans 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 of 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 • November 1992 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1991 1992 Type of holder and property 11998888 11998899 11999900 Q1 Q2 Q3 Q4 Qlp 1 AU holders 3,270,118 3,676,616 3,912,587 3,948,048 3,999,815 4,015,902 4,049,054 4,079,088 By type of property 2 One- to four-family residences 2,201,231 2,549,935 2,765,344 2,790,897 2,838,164 2,870,066 2,905,401 2,939,419 3 Multifamily residences 291,405 303,416 307,077 310,757 311,820 307,615 309,291 310,572 4 Commercial 692,236 739,240 756,203 762,452 766,060 755,076 750,622 745,206 5 Farm 85,247 84,025 83,962 83,942 83,771 83,145 83,740 83,891 By type of holder 6 Major financial institutions 1,831,472 1,931,537 1,914,315 1,902,398 1,898,308 1,860,372 1,852,489 1,837,642 7 Commercial banks 674,003 767,069 844,826 856,848 871,416 870,938 876,282 880,321 8 One- to four-family 334,367 389,632 455,931 462,130 476,363 478,851 486,573 492,837 9 Multifamily 33,912 38,876 37,015 38,390 37,564 36,398 37,420 37,711 10 Commercial 290,254 321,906 334,648 338,821 339,450 337,365 333,853 330,855 11 Farm , 15,470 16,656 17,231 17,507 18,039 18,323 18,436 18,919 12 Savings institutions 924,606 910,254 801,628 776,551 755,219 719,341 705,249 686,414 13 One- to four-family 671,722 669,220 600,154 583,694 570,044 547,455 538,113 525,639 14 Multifamily 110,775 106,014 91,806 88,743 86,448 81,880 79,912 77,604 15 Commercial 141,433 134,370 109,168 103,647 98,280 89,603 86,836 82,806 16 Farm 676 650 500 468 447 402 388 364 17 Life insurance companies 232,863 254,214 267,861 269,000 271,674 270,094 270,958 270,907 18 One- to four-family 11,164 12,231 13,005 11,737 11,743 11,720 11,763 11,483 19 Multifamily 24,560 26,907 28,979 29,493 30,006 29,962 30,115 30,407 20 Commercial 187,549 205,472 215,121 216,768 219,204 218,179 218,111 217,984 21 Farm 9,590 9,604 10,756 11,001 10,721 10,233 10,968 11,033 22 Finance companies4 37,846 45,476 48,777 48,187 48,972 50,658 51,567 50,573 23 Federal and related agencies 200,570 209,498 250,761 264,189 276,798 282,500 283,375 2%,821 24 Government National Mortgage Association 26 23 20 22 22 22 23 23 25 One- to four-family 26 23 20 22 22 22 23 23 26 Multifamily , 0 0 0 0 0 0 0 0 27 Farmers Home Administration 42,018 41,176 41,439 41,307 41,430 41,566 41,713 41,791 28 One- to four-family 18,347 18,422 18,527 18,522 18,521 18,598 18,4% 18,488 29 Multifamily 8,513 9,054 9,640 9,720 9,898 9,990 10,141 10,270 30 Commercial 5,343 4,443 4,690 4,715 4,750 4,829 4,905 4,%1 31 Farm 9,815 9,257 8,582 8,350 8,261 8,149 8,171 8,072 32 Federal Housing and Veterans' Administrations 5,973 6,087 8,801 9,492 10,210 10,440 11,056 11,387 33 One- to four-family 2,672 2,875 3,593 3,600 3,729 3,740 4,056 4,110 34 Multifamily 3,301 3,212 5,208 5,891 6,480 6,700 7,000 7,277 35 Federal National Mortgage Association 103,013 110,721 116,628 119,196 122,806 125,451 128,983 136,506 36 One- to four-family 95,833 102,295 106,081 108,348 111,560 113,696 117,087 124,137 37 Multifamily 7,180 8,426 10,547 10,848 11,246 11,755 11,8% 12,369 38 Federal Land Banks 32,115 29,640 29,416 29,253 29,152 29,053 28,970 28,875 39 One- to four-family 1,890 1,210 1,838 1,884 2,041 2,124 2,225 2,334 40 Farm 30,225 28,430 27,577 27,368 27,111 26,929 26,745 26,541 41 Federal Home Loan Mortgage Corporation 17,425 21,851 21,857 23,221 23,649 23,906 26,809 28,895 42 One- to four-family 15,077 18,248 19,185 20,570 21,120 21,489 24,125 26,182 43 Multifamily 2,348 3,603 2,672 2,651 2,529 2,417 2,684 2,713 44 Mortgage pools or trusts6 811,847 946,766 1,110,555 1,144,876 1,186,251 1,228,788 1,264,935 1,293,914 45 Government National Mortgage Association 340,527 368,367 403,613 409,929 413,707 422,501 425,295 422,695 46 One- to four-family 331,257 358,142 391,505 397,631 401,304 409,826 412,536 409,295 47 Multifamily 9,270 10,225 12,108 12,298 12,403 12,675 12,759 13,400 48 Federal Home Loan Mortgage Corporation 226,406 272,870 316,359 328,215 341,132 348,843 359,163 367,878 49 One- to four-family 219,988 266,060 308,369 319,978 332,624 341,183 351,906 360,887 50 Multifamily 6,418 6,810 7,990 8,237 8,509 7,660 7,257 6,991 51 Federal National Mortgage Association 178,250 228,232 299,833 312,101 331,089 351,917 371,984 389,853 52 One- to four-family 172,331 219,577 291,194 303,554 322,444 343,430 362,667 380,617 53 Multifamily 5,919 8,655 8,639 8,547 8,645 8,487 9,317 9,236 54 Farmers Home Administration 104 80 66 62 55 52 47 43 55 One- to four-family 26 21 17 14 13 12 11 10 56 Multifamily 0 0 0 0 0 0 0 0 57 Commercial 38 26 24 23 21 20 19 18 58 Farm 40 33 26 24 21 20 17 16 59 Individuals and others7 426,229 588,815 636,955 636,585 638,457 644,241 648,256 650,711 60 One- to four-family 259,971 414,763 449,440 447,344 447,339 451,988 454,841 457,115 61 Multifamily 79,209 81,634 84,408 84,227 83,452 83,740 83,772 83,688 62 Commercial 67,618 73,023 83,816 85,790 88,495 89,424 90,628 90,%1 63 Farm 19,431 19,395 19,291 19,224 19,171 19,089 19,014 18,947 1. Based on data from various institutional and governmental sources; figures 4. Assumed to be entirely loans on one- to four-family residences. for some quarters estimated in part by the Federal Reserve. Multifamily debt 5. Securities guaranteed by the Farmers Home Administration (FmHA) sold to 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 1992 HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt 11998888 11998899 11999900 Feb. Mar. Apr. May Juner July Seasonally adjusted 11 TToottaall 662,553 716,825 735,338 728,395 727,404 723,821 722,928 722,651 721,529 22 AAuuttoommoobbiillee 285,364 292,002 284,993 261,659 262,125 260,376 259,834 257,240 257,761 33 RReevvoollvviinngg 174,269 199,308 222,950 245,974 245,259 245,905 246,220 247,372 247,229 44 OOtthheerr 202,921 225,515 227,395 220,762 220,020 217,541 216,874 218,038 216,538 Not seasonally adjusted 5 Total 673,320 728,877 748,524 725,882 721,091 718,676 718,420 719,578 718,310 By major holder 6 Commercial banks 324,792 342,770 347,087 330,464 327,697 326,205 324,791 324,171 323,790 7 Finance companies 144,677 138,858 133,863 120,280 118,353 118,364 116,138 116,690 117,002 8 Credit unions 88,340 93,114 93,057 91,469 91,164 91,339 91,605 92,237 92,054 9 Retailers 48,438 44,154 44,822 40,015 39,454 39,553 37,824 37,438 37,219 10 Savings institutions 63,399 57,253 46,969 38,479 37,142 36,499 36,224 35,618 35,084 11 Gasoline companies 3,674 3,935 4,822 4,151 3,988 4,094 4,193 4,360 4,506 12 Pools of securitized assets n.a. 48,793 77,904 101,024 103,293 102,622 107,645 109,064 108,655 By major type of credit3 13 Automobile 285,421 292,060 285,050 259,723 259,530 258,449 258,665 257,343 258,122 14 Commercial banks 123,392 126,288 124,913 110,077 110,047 109,056 108,610 106,645 107,698 15 Finance companies 98,338 84,126 75,045 61,957 60,655 61,717 59,399 60,056 60,400 16 Pools of securitized assets2 0 18,185 24,428 28,480 29,942 28,679 31,406 31,024 30,466 17 Revolving 184,045 210,310 235,056 245,088 242,267 242,708 243,315 245,047 244,559 18 Commercial banks 123,020 130,811 133,385 130,848 128,550 128,506 128,013 127,925 127,476 19 Retailers 43,833 39,583 40,003 35,438 34,892 34,989 33,245 32,844 32,617 20 Gasoline companies 3,674 3,935 4,822 4,151 3,988 4,094 4,193 4,360 4,506 21 Pools of securitized assets2 n.a. 23,477 44,335 60,633 60,953 61,190 63,801 65,784 65,791 22 Other 203,854 226,507 228,418 221,071 219,294 217,519 216,440 217,188 215,629 23 Commercial banks 78,380 85,671 88,789 89,539 89,100 88,643 88,168 89,601 88,616 24 Finance companies 46,339 54,732 58,818 58,323 57,698 56,647 56,739 56,634 56,602 25 Retailers 4,605 4,571 4,819 4,577 4,562 4,564 4,579 4,594 4,602 26 Pools of securitized assets n.a. 7,131 9,141 11,911 12,398 12,753 12,438 12,256 12,398 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 • November 1992 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1 Percent per year, except as noted 1992 IItteemm 11998899 11999900 11999911 Jan. Feb. Mar. Apr. May June July INTEREST RATES Commercial bankS2 1 48-month new car3 12.07 11.78 11.14 n.a. 9.89 n.a. n.a. 9.52 n.a. n.a. 2 24-month personal 15.44 15.46 15.18 n.a. 14.39 n.a. n.a. 14.28 n.a. n.a. 3 120-month mobile home 14.11 14.02 13.70 n.a. 12.93 n.a. n.a. 12.82 n.a. n.a. 4 Credit card 18.02 18.17 18.23 n.a. 18.09 n.a. n.a. 17.97 n.a. n.a. Auto finance companies 5 New car 12.62 12.54 12.41 10.04 10.19 10.92 10.84 10.67 10.24 9.94 6 Used car 16.18 15.99 15.60 14.34 14.00 14.19 14.14 14.01 13.89 13.67 OTHER TERMS4 Maturity (months) 7 New car 54.2 54.6 55.1 53.5 53.8 54.3 54.5 54.7 54.4 54.4 8 Used car 46.6 46.0 47.2 48.4 48.0 48.0 47.8 47.9 48.0 48.0 Loan-to-value ratio 9 New car 91 87 88 89 89 89 89 89 89 89 10 Used car 97 95 96r 97 97 97 97 97 97 97 Amount financed (dollars) 11 New car 12,001 12,071 12,494 13,135 13,340 13,137 13,208 13,373 13,369 13,570 12 Used car 7,954 8,289 8,884 9,007 8,912 8,908 8,905 9,247 9,201 9,293 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" 1991r 1992 Q4 Ql Q2 Q3 Q4 Qlr Q2 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors .. 721.2r 775.8r 740.8 665.0 452.5 503.9 455.4 544.4 404.5 405.7 648.2 534.9 By lending sector and instrument 2 U.S. government 143.9 155.1 146.4 246.9 278.2 270.8 227.4 276.7 288.4 320.4 368.9 351.9 3 Treasury securities 142.4 137.7 144.7 238.7 292.0 271.8 251.4 282.9 317.2 316.6 380.1 351.5 4 Agency issues and mortgages 1.5 17.4 1.6 8.2 -13.8 -1.0 -24.0 -6.2 -28.8 3.8 -11.2 .4 5 Private 577.y 620.7r 594.4 418.2 174.3 233.0 228.0 267.7 116.1 85.3 279.3 183.0 By instrument 6 Debt capital instruments 487.2r 474. lr 441.8 342.3 254.5 277.9 296.0 331.1 180.8 210.0 293.6 223.9 7 Tax-exempt obligations 83.5 53.7 65.0 51.2 45.8 40.6 35.6 48.5 53.5 45.5 47.0 68.0 8 Corporate bonds 78.8r 103. lr 73.8 47.1 78.6 65.2 76.7 96.5 81.7 59.7 76.1 78.1 9 Mortgages 325.0" 317.3r 303.0 244.0 130.0 172.1 183.7 186.0 45.6 104.8 170.5 77.7 10 Home mortgages 235.3r 241.8r 245.3 219.4 142.2 162.3 153.0 158.1 122.4 135.1 203.4 137.0 11 Multifamily residential 24.4 16.7 16.4 3.7 -2.0 3.9 6.2 12.9 -29.7 2.7 -1.6 -33.5 12 Commercial 71.6 60.8 42.7 21.0 -9.4 7.2 24.5 15.6 -44.5 -33.1 -30.2 -28.5 n Farm -6.4 -2.1 -1.5 -.1 -.2 -1.3 -.1 -.7 -2.5 * -1.1 2.7 14 Other debt instruments 90. lr 146.6r 152.6 75.8 -80.2 -44.9 -68.0 -63.3 -64.8 -124.7 -14.3 -40.9 15 Consumer credit 32.9" 50. lr 41.7 17.5 -12.5 -6.6 -10.4 -7.8 -24.0 -8.0 3.1 -13.5 16 Bank loans n.e.c 9.9 41.0"" 40.2 4.4 -33.4 -8.4 -15.0 -34.5 -18.2 -66.1 -26.9 -27.0 17 Open market paper 1.6 11.9 21.4 9.7 -18.4 -34.4 -6.9 -16.1 -42.4 -8.1 22.3 34.3 18 Other 45.7r 43.6r 49.3 44.2 -15.8 4.3 -28.3 -5.2 13.7 -43.6 -3.2 3.1 By borrowing sector 19 State and local government 83.0 48.9 63.2 48.3 38.5 34.7 36.0 38.6 37.6 41.9 41.1 5588..44 20 Household 296.4r 318.6r 305.6 254.2 158.0 159.8 160.8 188.8 136.1 146.3 208.8 155.4 21 Nonfinancial business 197.8r 253.lr 225.6 115.6 -22.3 38.6 31.1 40.3 -57.6 -103.0 29.4 -30.8 22 Farm -10.6 -7.5 1.6 2.5 .9 -.3 3.9 2.1 -.3 -2.2 -1.6 7.0 23 Nonfarm noncorporate 65.3r 61.8r 50.4 26.7 -23.6 7.9 13.2 9.8 -65.9 -51.5 -22.7 -67.6 24 Corporate 143. lr 198.8r 173.6 86.4 .4 31.0 14.0 28.4 8.6 -49.3 53.7 29.8 25 Foreign net borrowing in United States 6.2 6.4 10.2 23.9 14.1 24.2 63.1 -63.2 15.6 41.0 9.5 64.5 26 Bonds 7.4 6.9 4.9 21.4 14.9 29.6 11.1 10.6 15.5 22.3 4.7 12.6 27 Bank loans n.e.c -3.6 -1.8 -.1 -2.9 3.1 -5.2 8.1 -3.5 1.4 6.5 1.4 21.2 28 Open market paper 3.8 8.7 13.1 12.3 6.4 15.6 46.7 -51.9 16.0 14.9 -7.8 27.7 29 U.S. government loans -1.4 -7.5 -7.6 -6.9 -10.2 -15.8 -2.8 -18.3 -17.2 -2.7 11.2 2.9 30 Total domestic plus foreign 727.4r 782.2r 7S0.9 688.9 466.6 528.1 518.5 481.3 420.1 446.7 657.7 599.3 Financial sectors 31 Total net borrowing by financial sectors 259.0r 211.4r 220.1 187.1 139.2 296.8 108.9 103.1 144.3 200.5 108.7 217.5 By instrument 32 U.S. government-related 171.8 119.8 151.0 167.4 147.7 188.3 154.6 127.4 156.3 152.7 126.8 199.5 33 Sponsored-credit-agency securities 30.2 44.9 25.2 17.1 9.2 37.1 13.1 -29.7 20.6 32.6 11.5 48.3 34 Mortgage pool securities 142.3 74.9 125.8 150.3 138.6 151.6 141.5 157.1 135.8 120.1 115.3 151.2 35 Loans from U.S. government -.8 .0 .0 -.1 .0 -.5 .0 .0 .0 -.1 .0 .0 36 Private 87.2r 91.7r 69.1 19.7 -8.6 108.6 -45.7 -24.3 -12.0 47.8 -18.0 18.1 37 Corporate bonds 39. r 16.2r 46.8 34.4 57.7 98.6 41.4 72.6 29.3 87.5 -24.2 25.0 38 Mortgages .4 .3 .0 .3 .6 .6 .2 -.2 .9 1.5 .9 .2 39 Bank loans n.e.c -3.6 .6 1.9 1.2 3.2 1.4 1.0 -2.9 10.2 4.5 7.2 4.9 40 Open market paper 26.9 54.8 31.3 8.6 -32.0 24.7 -52.5 -46.0 -16.7 -12.7 7.6 -17.6 41 Loans from Federal Home Loan Banks 24.4 19.7 -11.0 -24.7 -38.0 -16.7 -35.8 -47.7 -35.7 -33.0 -9.5 5.7 By borrowing sector 42 Sponsored credit agencies 29.5 44.9 25.2 17.0 9.1 36.7 13.1 -29.7 20.6 32.5 11.5 48.3 43 Mortgage pools 142.3 74.9 125.8 150.3 138.6 151.6 141.5 157.1 135.8 120.1 115.3 151.2 44 Private 87.2r 91.7r 69.1 19.7 -8.6 108.6 -45.7 -24.3 -12.0 47.8 -18.0 18.1 45 Commercial banks 6.2 -3.0 -1.4 -1.1 -13.3 14.7 -18.4 -11.7 -9.2 -14.1 7.2 -.6 46 Bank affiliates 14.3 5.2 6.2 -27.7 -2.5 -30.2 -9.3 -3.5 -6.8 9.6 2.7 -9.2 47 Savings and loan associations 19.6 19.9 -14.1 -29.9 -39.5 -20.7 -42.9 -48.7 -41.1 -25.1 -20.3 4.2 48 Mutual savings banks 8.1 1.9 -1.4 -.5 -3.5 1.4 2.0 -1.7 -5.5 -8.7 4.3 -1.2 49 Finance companies -.5r 31.5r 59.7 35.6 14.5 81.9 -10.3 3.4 12.2 52.9 -39.0 -20.9 50 Real estate investment trusts (REITs) .4 3.6 -1.9 -1.9 .0 .3 .1 -.8 .0 .8 4.6 2.4 51 Securitized credit obligation (SCO) issuers 39.1 32.5 22.0 45.2 35.6 61.3 33.2 38.7 38.5 32.3 22.4 43.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • November 1992 1.57—Continued 1990r 1991r 1992 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998877 11998888 11998899rr 11999900rr 11999911rr Q4 Q1 Q2 Q3 Q4 Qlr Q2 All sectors 52 Total net borrowing, all sectors 986.4r 993.6r 971.0 876.0 605.8 824.9 627.4 584.4 564.4 647.1 766.4 816.9 53 U.S. government securities 316.4 274.9 297.3 414.4 426.0 459.6 382.0 404.1 444.8 473.2 495.7 551.4 54 State and local obligations 83.5 53.7 65.0 51.2 45.8 40.6 35.6 48.5 53.5 45.5 47.0 68.0 55 Corporate and foreign bonds 125.2r 126.3r 125.5 102.9 151.2 193.4 129.2 179.7 126.4 169.5 56.6 115.7 56 Mortgages 325,4r 317.5r 303.0 244.3 130.6 172.8 183.9 185.8 46.5 106.2 171.4 77.9 57 Consumer credit 32.9r 5O. r 41.7 17.5 -12.5 -6.6 -10.4 -7.8 -24.0 -8.0 3.1 -13.5 58 Bank loans n.e.c 2.7 39.9* 41.9 2.8 -27.1 -12.2 -5.9 -40.9 -6.7 -55.1 -18.2 -.9 59 Open market paper 32.3 75.4 65.9 30.7 -44.0 6.1 -20.2 -113.8 -37.0 -4.9 12.4 6.7 60 Other loans 68.0r 55.8r 30.6 12.4 -64.2 -28.8 -66.9 -71.2 -39.1 -79.3 -1.5 11.6 61 MEMO: U.S. government, cash balance -7.9 10.4 -5.9 8.3 14.5 17.3 34.8 -31.5 -11.3 65.8 -80.0 33.7 Totals net of changes in U.S. government cash balances 62 Net borrowing by domestic nonfinancial sectors 729. lr 765.4r 746.7 656.7 438.0 486.6 420.6 575.9 415.8 339.9 728.2 501.2 63 Net borrowing by U.S. government 151.8 144.7 152.3 238.6 263.8 253.5 192.6 308.2 299.7 254.6 448.9 318.2 External corporate equity funds raised in United States 64 Total net share issues 7.1 —118.4r -65.7 22.1 198.8 28.2 112.4 178.9 235.2 268.9 271.8 283.6 65 Mutual funds 70.2 6.1 38.5 67.9 150.5 85.2 98.1 125.6 182.5 195.9 189.8 223.3 66 All other -63.2r -124.5r -104.2 -45.8 48.3 -57.0 14.3 53.3 52.7 72.9 82.0 60.3 67 Nonfinancial corporations -75.5 -129.5 -124.2 -63.0 18.3 -61.0 -6.0 12.0 19.0 48.0 46.0 36.0 68 Financial corporations 14.5 4.1r 2.7 9.8 -.1 1.2 -6.7 4.7 -.4 2.0 6.0 2.9 69 Foreign shares purchased in United States -2.1 .9 17.2 7.4 30.2 2.8 27.0 36.6 34.1 22.9 30.0 21.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A41 1.58 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS Billions of dollars, except as noted; quarterly data at seasonally adjusted annual rates 1990" 1991r 1992 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998877rr 11998888rr 11998899rr 11999900rr 11999911rr Q4 Qi Q2 Q3 Q4 Qlr Q2 1 Total funds advanced in credit markets to domestic nonfinancial sectors 721.2 775.8 740.8 665.0 452.5 503.9 455.4 544.4 404.5 405.7 648.2 534.9 2 Total net advances by federal agencies and foreign sectors 248.0 208.1 188.9 266.9 238.6 215.7 281.3 206.9 252.8 213.3 344.3 340.9 By instrument 3 U.S. government securities 70.1 85.2 30.2 71.7 95.9 54.8 128.7 38.8 112.8 103.2 166.3 131.1 4 Residential mortgages 139.1 86.3 137.9 184.1 163.9 183.2 181.1 196.1 158.7 119.7 165.3 158.3 5 Federal Home Loan Bank advances to thrifts 24.4 19.7 -11.0 -24.7 -38.0 -16.7 -35.8 -47.7 -35.7 -33.0 -9.5 5.7 6 Other loans and securities 14.3 16.9 31.8 35.8 16.9 -5.6 7.3 19.8 16.9 23.4 22.3 45.9 By lender 7 U.S. government -7.9 -10.6 -3.1 33.7 10.0 -1.1 35.2 24.8 -2.1 -17.9 13.7 -12.1 8 Sponsored credit agencies and mortgage pools 169.3 112.0 125.3 166.7 152.8 143.3 168.9 134.8 169.5 137.9 208.3 199.0 9 Monetary authority 24.7 10.5 -7.3 8.1 31.1 -11.6 58.1 -4.0 48.1 22.3 33.2 9.8 10 Foreign 61.8 96.3 74.1 58.4 44.7 85.1 19.1 51.4 37.3 71.0 89.1 144.2 Agency and foreign borrowing not included in line 1 11 Sponsored credit agencies and mortgage pools 171.8 119.8 151.0 167.4 147.7 188.3 154.6 127.4 156.3 152.7 126.8 199.5 12 Foreign 6.2 6.4 10.2 23.9 14.1 24.2 63.1 -63.2 15.6 41.0 9.5 64.5 13 Total private domestic funds advanced 651.2 693.8 713.0 589.3 375.8 500.6 391.8 401.7 323.6 386.0 440.1 457.9 14 U.S. government securities 246.3 189.7 267.2 342.7 330.1 404.8 253.3 365.3 331.9 369.9 329.4 420.3 15 State and local obligations 83.5 53.7 65.0 51.2 45.8 40.6 35.6 48.5 53.5 45.5 47.0 68.0 16 Corporate and foreign bonds 67.1 94.1 64.6 62.9 75.1 92.6 68.7 82.5 82.6 66.4 67.2 63.5 17 Residential mortgages 120.6 172.2 123.8 38.9 -23.7 -17.0 -21.8 -25.0 -66.1 18.2 36.4 -54.7 18 Other mortgages and loans 158.1 203.8 181.4 68.9 -89.5 -37.1 20.1 -117.2 -114.1 -147.0 -49.4 -33.5 19 LESS: Federal Home Loan Bank advances 24.4 19.7 -11.0 -24.7 -38.0 -16.7 -35.8 -47.7 -35.7 -33.0 -9.5 5.7 20 Total credit market funds advanced by private financial institutions 501.1 559.3 572.5 405.3 345.8 554.4 297.1 186.7 446.8 452.6 335.9 410.8 By lending institution 21 Commercial banks 135.3 157.1 176.8 125.4 84.0 69.5 114.4 34.7 82.4 104.3 97.9 53.2 22 Savings institutions 136.9 119.0 -91.0 -151.9 -144.9 -178.5 -188.3 -164.8 -176.8 -49.7 -102.1 -51.4 23 Insurance and pension funds 153.5 186.2 207.7 188.5 215.4 197.2 236.2 219.5 254.5 151.4 142.4 194.0 24 Other financial institutions 75.4 96.9 278.9 243.3 191.3 466.2 134.7 97.4 286.7 246.5 197.7 215.0 By source of funds 25 Private domestic deposits and repurchase agreements ... 169.2 231.0 198.9 52.0 -1.4 -7.9 223.5 -117.0 -53.7 -58.6 196.4 -139.9 26 Credit market borrowing 87.2 91.7 69.1 19.7 -8.6 108.6 -45.7 -24.3 -12.0 47.8 -18.0 18.1 27 Other sources 244.6 236.6 304.5 333.5 355.8 453.7 119.3 328.0 512.5 463.4 157.5 532.6 28 Foreign funds 43.7 9.3 -9.9 23.8 -21.0 -21.3 6.3 -100.3 35.1 -25.1 1.8 30.0 29 Treasury balances -5.8 7.3 -3.4 5.3 5.5 .4 20.5 -19.6 6.5 14.6 -43.2 21.2 30 Insurance and pension reserves 107.8 182.8 210.2 175.9 198.4 228.6 269.7 138.0 267.2 118.7 100.4 177.2 31 Other, net 99.0 37.2 107.6 128.4 172.9 246.1 -177.2 309.9 203.8 355.2 98.5 304.2 Private domestic nonfinancial investors 32 Direct lending in credit markets 237.4 226.2 209.6 203.8 21.4 54.8 49.0 190.8 -135.2 -18.8 86.2 65.2 33 U.S. government securities 99.9 134.0 118.1 124.9 -40.9 -38.8 -3.7 123.0 -144.1 -138.9 132.5 80.3 34 State and local obligations 96.2 57.6 63.8 30.9 24.3 12.2 26.3 34.0 29.8 7.2 23.4 -5.9 35 Corporate and foreign bonds 2.5 -35.6 -5.8 6.6 42.9 65.1 70.3 97.8 -72.0 75.6 -64.4 -62.7 36 Open market paper 7.7 32.0 5.2 13.9 -22.9 15.6 -57.8 -79.8 11.1 34.9 -64.8 46.8 37 Other loans and mortgages 31.1 38.2 28.2 27.5 18.1 .7 13.8 15.8 40.2 2.4 59.5 6.7 38 Deposits and currency 185.7 234.5 215.1 86.6 25.3 45.3 263.5 -92.0 -29.5 -41.0 243.8 -89.0 39 Currency 19.0 14.7 11.7 22.6 19.8 16.0 38.5 6.0 9.2 25.5 5.3 20.4 40 Checkable deposits -1.7 12.6 .1 -.7 49.6 -22.0 45.7 17.3 112.2 23.1 160.6 48.0 41 Small time and savings accounts 76.2 122.4 98.7 60.9 15.8 70.7 96.5 -1.0 -43.5 11.4 -7.7 -79.1 42 Money market fund shares 28.9 20.2 86.4 54.4 33.8 43.6 182.6 -66.4 -2.1 21.1 101.4 -41.6 43 Large time deposits 44.2 42.9 6.9 -44.4 -81.9 -61.5 -49.2 -62.4 -99.7 -116.4 -73.6 -98.6 44 Security repurchase agreements 21.6 32.9 6.9 -18.2 -18.7 -38.7 -52.2 -4.5 -20.6 2.3 15.8 31.4 45 Deposits in foreign countries -2.5 -11.2 4.4 12.0 6.9 37.2 1.4 18.9 15.1 -7.9 42.1 30.5 46 Total of credit market instruments, deposits, and currency 423.1 460.7 424.6 290.4 46.7 100.2 312.5 98.7 -164.6 -59.8 330.0 -23.8 MEMO 47 Public holdings as percent of total 34.5 27.0 25.1 40.0 51.3 40.8 54.3 43.0 60.2 47.8 52.4 56.9 48 Private financial intermediation (percent) 77.0 82.0 80.1 70.4 94.4 110.7 75.8 46.5 138.1 117.3 76.3 89.7 49 Total foreign funds 105.5 105.6 64.1 82.3 23.7 63.8 25.5 -48.9 72.4 45.9 91.0 174.2 Corporate equities not included above 50 Total net issues 7.1 -118.4 -65.7 22.1 198.8 28.2 112.4 178.9 235.2 268.9 271.8 283.6 51 Mutual fund shares 70.2 6.1 38.5 67.9 150.5 85.2 98.1 125.6 182.5 195.9 189.8 223.3 52 Other equities -63.2 -124.5 -104.2 -45.8 48.3 -57.0 14.3 53.3 52.7 72.9 82.0 60.3 53 Acquisitions by financial institutions 26.2 4.4 26.1 14.4 125.5 28.6 73.6 105.1 131.9 191.1 86.0 100.2 54 Other net purchases -19.2 -122.9 -91.8 7.7 73.4 -.4 38.8 73.8 103.3 77.7 185.8 183.4 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 claims on foreign affiliates and deposits by banking institutions in foreign banks. ordering address, see inside front cover. Digitized for FRA29S. EDeRm and deposits and note balances at commercial banks. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • November 1992 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING Billions of dollars, end of period 1990" 1991" 1992 11998888 11998899"" 11999900"" 11999911"" Q4 Q1 Q2 Q3 Q4 Ql" Q2 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 9,316.3r 10,087.1 10,760.8 11,210.7 10,760.8 10,832.3 10,960.5 11,082.5 11,210.7 11,331.7 11,459.8 By lending sector and instrument 2 U.S. government 2,104.9 2,251.2 2,498.1 2,776.4 2,498.1 2,548.8 2,591.9 2,687.2 2,776.4 2,859.7 2,923.3 3 Treasury securities 2,082.3 2,227.0 2,465.8 2,757.8 2,465.8 2,522.4 2,567.1 2,669.6 2,757.8 2,844.0 2,907.4 4 Agency issues and mortgages 22.6 24.2 32.4 18.6 32.4 26.4 24.8 17.6 18.6 15.8 15.9 5 Private 7,211.4r 7,835.9 8,262.6 8,434.3 8,262.6 8,283.5 8,368.6 8,395.3 8,434.3 8,472.0 8,536.5 By instrument 6 Debt capital instruments 5,119.0" 5,577.9 5,936.0 6,190.4 5,936.0 5,997.7 6,087.8 6,138.4 6,190.4 6,252.0 6,315.8 7 Tax-exempt obligations 939.4 1,004.4 1,055.6 1,101.4 1,055.6 1,061.5 1,072.5 1,089.3 1,101.4 1,110.3 1,126.1 8 Corporate bonds 852.2r 926.1 973.2 1,051.8 973.2 992.3 1,016.5 1,036.9 1,051.8 1,070.8 1,090.4 9 Mortgages 3,327.3r 3,647.5 3,907.3 4,037.3 3,907.3 3,943.8 3,998.9 4,012.2 4,037.3 4,070.8 4,099.4 10 Home mortgages 2,257.5r 2,515.1 2,760.0 2,902.1 2,760.0 2,788.9 2,836.9 2,869.5 2,902.1 2,943.9 2,987.3 11 Multifamily residential 286.7 304.4 305.8 303.8 305.8 307.3 310.5 303.1 303.8 303.4 295.0 12 Commercial 696.4 742.6 757.6 748.2 757.6 763.7 767.6 756.5 748.2 740.7 733.5 13 Farm 86.8 85.3 84.0 83.2 84.0 83.9 83.8 83.1 83.2 82.9 83.6 14 Other debt instruments 2,092.5r 2,258.0 2,326.7 2,243.9 2,326.7 2,285.8 2,280.8 2,256.9 2,243.9 2,220.0 2,220.6 15 Consumer credit 742. lr 791.8 809.3 7%. 7 809.3 785.3 786.7 785.9 796.7 775.7 775.5 16 Bank loans n.e.c 710.6r 760.7 758.0 724.6 758.0 748.3 742.0 734.1 724.6 712.5 708.1 1/ Open market paper 85.7 107.1 116.9 98.5 116.9 120.8 119.4 107.0 98.5 110.3 111.7 18 Other 554.lr 598.4 642.6 624.1 642.6 631.5 632.6 629.8 624.1 621.6 625.3 By borrowing sector 19 State and local government 752.5 815.7 864.0 902.5 864.0 870.1 878.5 891.4 902.5 910.0 923.4 20 Household 3,177.3r 3,508.2 3,780.6 3,938.6 3,780.6 3,788.3 3,848.3 3,888.7 3,938.6 3,958.8 4,010.8 21 Nonfinancial business 3,281.6" 3,512.0 3,618.0 3,593.2 3,618.0 3,625.2 3,641.8 3,615.3 3,593.2 3,603.2 3,602.3 22 Farm 137.6 139.2 140.5 138.8 140.5 136.8 139.6 140.4 138.8 136.3 140.2 23 Nonfarm noncorporate l,127.1r 1,177.5 1,204.2 1,180.6 1,204.2 1,207.1 1,210.8 1,191.0 1,180.6 1,174.4 1,159.0 24 Corporate 2,016.9" 2,195.3 2,273.4 2,273.8 2,273.4 2,281.2 2,291.4 2,283.9 2,273.8 2,292.5 2,303.1 25 Foreign credit market debt held in United States 244.6r 254.8 278.6 292.7 278.6 291.3 277.6 282.2 292.7 282.3 300.6 26 Bonds 83.lr 88.0 109.4 124.2 109.4 112.1 114.8 118.6 124.2 125.4 128.5 27 Bank loans n.e.c 21.5 21.4 18.5 21.6 18.5 20.5 19.7 20.0 21.6 22.0 27.3 28 Open market paper 49.9 63.0 75.3 81.8 75.3 87.0 74.0 78.0 81.8 70.5 77.5 29 U.S. government loans 90. lr 82.4 75.4 65.2 75.4 71.6 69.1 65.6 65.2 64.4 67.3 30 Total credit market debt owed by nonfinancial sectors, domestic and foreign 9,560.9" 10,341.9 11,039.4 11,503.4 11,039.4 11,123.6 11,238.2 11,364.7 11,503.4 11,614.0 11,760.4 Financial sectors 31 Total credit market debt owed by financial sectors 2,082.9" 2,333.0 2,524.2 2,667.8 2,524.2 2,546.3 2,571.1 2,608.2 2,667.8 2,686.9 2,739.7 By instrument 32 U.S. government-related 1,098.4 1,249.3 1,418.4 1,566.2 1,418.4 1,452.1 1,482.8 1,524.4 1,566.2 1,592.9 1,641.6 33 Sponsored credit-agency securities 348.1 373.3 393.7 402.9 393.7 397.0 389.6 394.7 402.9 405.7 417.8 34 Mortgage pool securities 745.3 871.0 1,019.9 1,158.5 1,019.9 1,050.3 1,088.4 1,124.8 1,158.5 1,182.4 1,219.0 35 Loans from U.S. government 5.0 5.0 4.9 4.8 4.9 4.9 4.9 4.9 4.8 4.8 4.8 36 Private 984.6" 1,083.7 1,105.8 1,101.6 1,105.8 1,094.1 1,088.4 1,083.9 1,101.6 1,093.9 1,098.1 37 Corporate bonds 415.1" 491.9 528.2 590.2 528.2 545.4 562.3 569.5 590.2 578.4 583.3 38 Mortgages 3.4 3.4 4.2 4.8 4.2 4.3 4.2 4.4 4.8 5.0 5.1 39 Bank loans n.e.c 35.6 37.5 38.6 41.8 38.6 36.5 37.0 39.0 41.8 41.3 43.7 40 Open market paper 377.7 409.1 417.7 385.7 417.7 400.9 390.1 387.0 385.7 392.9 389.2 41 Loans from Federal Home Loan Banks 152.8 141.8 117.1 79.1 117.1 107.0 94.7 83.9 79.1 76.3 76.9 By borrowing sector 42 Sponsored credit agencies 353.1 378.3 398.5 407.7 398.5 401.8 394.4 399.5 407.7 410.5 422.6 43 Mortgage pools 745.3 871.0 1,019.9 1,158.5 1,019.9 1,050.3 1,088.4 1,124.8 1,158.5 1,182.4 1,219.0 44 Private financial sectors 984.6" 1,083.7 1,105.8 1,101.6 1,105.8 1,094.1 1,088.4 1,083.9 1,101.6 1,093.9 1,098.1 45 Commercial banks 78.8 77.4 76.3 63.0 76.3 68.1 65.9 64.6 63.0 60.8 61.3 46 Bank affiliates 136.2 142.5 114.8 112.3 114.8 114.4 113.3 110.6 112.3 115.0 112.4 47 Savings and loan associations 159.3 145.2 115.3 75.9 115.3 104.2 91.0 79.0 75.9 71.2 70.7 48 Mutual savings banks 18.6 17.2 16.7 13.2 16.7 16.4 16.6 15.2 13.2 13.5 13.9 49 Finance companies 444.6" 504.2 539.8 557.9 539.8 539.6 540.4 543.7 557.9 547.1 541.8 Ml Real estate investment trusts (REITs) 11.4 10.1 10.6 11.4 10.6 10.8 10.8 11.0 11.4 12.7 13.5 51 Securitized credit obligation (SCO) issuers... 135.7 187.1 232.3 268.0 232.3 240.6 250.3 259.9 268.0 273.6 284.4 All sectors 52 Total credit market debt, domestic and foreign.. 11,643.9" 12,674.9 13,563.6 14,171.2 13,563.6 13,669.9 13,809.3 13,973.0 14,171.2 14,300.9 14,500.1 53 U.S. government securities 3,198.3 3,495.6 3,911.7 4,337.7 3,911.7 3,996.1 4,069.8 4,206.7 4,337.7 4,447.8 4,560.1 54 State and local obligations 939.4 1,004.4 1,055.6 1,101.4 1,055.6 1,061.5 1,072.5 1,089.3 1,101.4 1,110.3 1,126.1 55 Corporate and foreign bonds 1,350.4" 1,506.0 1,610.7 1,766.2 1,610.7 1,649.9 1,693.5 1,725.0 1,766.2 1,774.6 1,802.2 56 Mortgages 3,330.7" 3,650.9 3,911.5 4,042.1 3,911.5 3,948.1 4,003.1 4,016.7 4,042.1 4,075.8 4,104.4 57 Consumer credit 742.1" 791.8 809.3 796.7 809.3 785.3 786.7 785.9 796.7 775.7 775.5 58 Bank loans n.e.c 767.7" 819.6 815.1 788.0 815.1 805.3 798.7 793.2 788.0 775.8 779.1 59 Open market paper 513.4 579.2 609.9 565.9 609.9 608.8 583.6 572.0 565.9 573.7 578.4 60 Other loans 801.9" 827.5 839.9 773.2 839.9 814.9 801.4 784.2 773.2 767.1 774.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A43 1.60 SUMMARY OF CREDIT MARKET CLAIMS Billions of dollars, except as noted, end of period 1990 1991r 1992 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998888rr 11998899rr 11999900rr 11999911rr Q4r Ql Q2 Q3 Q4 Qlr Q2 1 Total funds advanced in credit markets to domestic nonfinancial sectors 9,316.3 10,087.1 10,760.8 11,210.7 10,760.8 10,832.3 10,960.5 11,082.5 11,210.7 11,331.7 11,459.8 2 Total held by federal agencies and foreign sector .... 2,220.0 2,410.8 2,676.0 2,923.7 2,676.0 2,728.7 2,787.6 2,850.4 2,923.7 2,995.2 3,088.1 By instrument 3 U.S. government securities 651.5 688.9 760.3 867.8 760.3 784.7 802.5 829.3 867.8 901.5 943.4 4 Residential mortgages 900.4 1,038.4 1,221.0 1,384.9 1,221.0 1,261.4 1,309.2 1,351.3 1,384.9 1,421.3 1,459.7 5 Federal Home Loan Bank advances to thrifts 152.8 141.8 117.1 79.1 117.1 107.0 94.7 83.9 79.1 76.3 76.9 6 Other loans and securities 515.3 541.7 577.5 591.9 577.5 575.7 581.3 585.8 591.9 596.2 608.2 By type of lender 7 U.S. government 213.2 205.1 238.7 246.2 238.7 245.5 252.9 252.0 246.2 250.1 248.4 8 Sponsored credit agencies and mortgage pools 1,113.0 1,238.2 1,403.4 1,556.2 1,403.4 1,438.8 1,471.1 1,514.3 1,556.2 1,602.3 1,650.0 9 Monetary authority 240.6 233.3 241.4 272.5 241.4 247.3 253.7 264.7 272.5 271.8 282.6 10 Foreign 653.2 734.2 792.4 848.8 792.4 797.1 810.0 819.3 848.8 871.1 907.2 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 1,418.4 1,452.1 1,482.8 1,524.4 1,566.2 1,592.9 1,641.6 12 Foreign 244.6 254.8 278.6 292.7 278.6 291.3 277.6 282.2 292.7 282.3 300.6 13 Total private domestic holdings 8,439.3 9,180.5 9,781.8 10,145.9 9,781.8 9,847.0 9,933.3 10,038.7 10,145.9 10,211.7 10,313.9 14 U.S. government securities 2,546.8 2,806.7 3,151.4 3,469.9 3,151.4 3,211.3 3,267.4 3,377.4 3,469.9 3,546.4 3,616.7 15 State and local obligations 939.4 1,004.4 1,055.6 1,101.4 1,055.6 1,061.5 1,072.5 1,089.3 1,101.4 1,110.3 1,126.1 16 Corporate and foreign bonds 733.6 798.5 861.4 936.5 861.4 878.6 899.2 919.9 936.5 953.3 969.2 17 Residential mortgages 1,643.8 1,781.2 1,844.7 1,821.0 1,844.7 1,834.8 1,838.3 1,821.3 1,821.0 1,826.0 1,822.6 18 Other mortgages and loans 2,728.6 2,931.4 2,985.8 2,8%.2 2,985.8 2,967.6 2,950.6 2,914.8 2,896.2 2,852.1 2,856.2 19 LESS: Federal Home Loan Bank advances 152.8 141.8 117.1 79.1 117.1 107.0 94.7 83.9 79.1 76.3 76.9 20 Total credit market claims held by private financial institutions 7,238.4 7,823.6 8,243.4 8,589.2 8,243.4 8,306.9 8,367.9 8,474.3 8,589.2 8,663.3 8,780.7 By holding institution 21 Commercial banks 2,476.3 2,643.9 2,769.3 2,853.3 2,769.3 2,780.2 2,796.6 2,817.8 2,853.3 2,860.3 2,881.3 22 Savings institutions 1,572.0 1,484.9 1,335.5 1,190.6 1,335.5 1,287.8 1,248.4 1,205.1 1,190.6 1,164.5 1,153.3 23 Insurance and pension funds 1,932.6 2,140.3 2,329.1 2,544.6 2,329.1 2,392.0 2,448.8 2,511.7 2,544.6 2,584.7 2,635.5 24 Other finance 1,257.5 1,554.5 1,809.4 2,000.7 1,809.4 1,847.0 1,874.1 1,939.7 2,000.7 2,053.7 2,110.5 By source of funds 25 Private domestic deposits and repurchase agreements 3,566.9 3,765.5 3,817.5 3,816.1 3,817.5 3,849.4 3,812.9 3,795.4 3,816.1 3,840.3 3,798.3 26 Credit market debt 984.6 1,083.7 1,105.8 1,101.6 1,105.8 1,094.1 1,088.4 1,083.9 1,101.6 1,093.9 1,098.1 27 Other sources 2,686.9 2,974.5 3,320.1 3,671.6 3,320.1 3,363.4 3,466.6 3,595.1 3,671.6 3,729.0 3,884.3 28 Foreign funds 71.6 62.1 85.9 64.9 85.9 85.3 56.6 67.3 64.9 63.1 66.7 29 U.S. Treasury balances 29.0 25.6 30.9 36.4 30.9 26.3 36.0 38.5 36.4 16.7 36.1 30 Insurance and pension reserves 1,869.8 2,073.0 2,244.4 2,430.8 2,244.4 2,298.1 2,335.7 2,396.2 2,430.8 2,460.2 2,508.8 31 Other, net 716.5 813.8 958.9 1,139.5 958.9 953.7 1,038.3 1,093.1 1,139.5 1,189.1 1,272.7 Private domestic nonfinancial investors 32 Credit market claims 2,185.5 2,440.5 2,644.2 2,658.2 2,644.2 2,634.2 2,653.8 2,648.2 2,658.2 2,642.4 2,631.3 33 U.S. government securities 1,012.8 1,123.7 1,240.4 1,187.8 1,240.4 1,225.5 1,225.0 1,215.3 1,187.8 1,203.6 1,193.1 34 State and local obligations 486.5 550.3 581.2 605.5 581.2 578.5 590.4 602.1 605.5 602.4 604.5 35 Corporate and foreign bonds 81.0 116.2 150.9 198.1 150.9 174.9 194.2 177.9 198.1 175.9 154.7 36 Open market paper 220.5 225.7 242.1 219.1 242.1 227.8 210.8 212.4 219.1 203.7 218.1 37 Other loans and mortgages 384.7 424.6 429.6 447.7 429.6 427.5 433.4 440.5 447.7 456.8 460.8 38 Deposits and currency 3,800.2 4,014.8 4,101.4 4,126.7 4,101.4 4,141.2 4,113.5 4,098.5 4,126.7 4,161.1 4,134.1 39 Currency 220.1 231.8 254.4 274.2 254.4 262.0 265.9 264.8 274.2 273.9 281.3 40 Checkable deposits 535.4 534.8 534.1 583.7 534.1 513.5 523.0 541.4 583.7 590.6 607.6 41 Small time and savings accounts 2,156.2 2,254.3 2,315.2 2,331.1 2,315.2 2,344.5 2,340.8 2,329.5 2,331.1 2,334.9 2,311.4 42 Money market fund shares 318.0 404.4 458.8 492.6 458.8 509.6 488.8 487.5 492.6 522.8 508.1 43 Large time deposits 374.3 382.2 337.8 255.9 337.8 325.4 304.9 284.4 255.9 238.0 208.4 44 Security repurchase agreements 182.9 189.8 171.6 152.9 171.6 156.4 155.5 152.7 152.9 154.1 162.7 45 Deposits in foreign countries 13.1 17.6 29.5 36.4 29.5 29.9 34.6 38.4 36.4 46.9 54.5 46 Total of credit market instruments, deposits, and currency 5,985.7 6,455.3 6,745.6 6,784.9 6,745.6 6,775.4 6,767.2 6,746.8 6,784.9 6,803.5 6,765.3 MEMO 47 Public holdings as percent of total 23.2 23.3 24.2 25.4 24.2 24.5 24.8 25.1 25.4 25.8 26.3 48 Private financial intermediation (percent) 85.7 85.2 84.2 84.6 87.9 84.3 84.2 84.4 84.6 84.8 85.1 49 Total foreign funds 724.8 796.2 878.3 913.7 878.3 882.5 866.6 886.6 913.7 934.2 973.8 Corporate equities not included above 50 Total market value 3,619.8 4,385.8 4,108.7 5,442.4 4,108.7 4,708.8 4,788.4 5,082.7 5,442.4 5,361.8 5,502.6 51 Mutual fund shares 478.3 566.2 602.1 812.4 602.1 661.6 683.7 744.2 812.4 859.3 936.7 52 Other equities 3,141.6 3,819.7 3,506.6 4,630.0 3,506.6 4,047.2 4,104.7 4,338.5 4,630.0 4,502.5 4,565.8 53 Holdings by financial institutions 1,271.3 1,617.9 1,511.8 2,060.2 1,511.8 1,748.3 1,750.2 1,885.3 2,060.2 2,061.2 2,123.9 54 Other holdings 2,348.5 2,767.9 2,596.9 3,382.3 2,596.9 2,960.5 3,038.2 3,197.4 3,382.3 3,300.6 3,378.7 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 • November 1992 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures Monthly data seasonally adjusted, 1987=100, except as noted 1991 1992 MMeeaassuurree 11998899 11999900 11999911 Dec. Jan. Feb. Mar. Apr. May June Julyr Aug. 1 Industrial production1 108.1 109.2 107.1 107.4 106.6 107.2 107.6 108.1 108.9 108.5 109.2 108.6 Market groupings 2 Products, total 108.6 110.1 108.1 108.4 107.5 108.1 108.5 109.0 109.7 109.1 109.4 109.2 i Final, total 109.1 110.9 109.6 109.9 108.7 109.4 109.8 110.6 111.4r 110.6r 111.0 110.9 4 Consumer goods 106.7 107.3 107.5 109.1 108.1 108.8 109.3 110.1 110.8r 109.8r 110.2 109.7 5 Equipment 112.3 115.5 112.2 110.9 109.4 110.2 110.4 111.3 112.3r m.r 112.0 112.4 6 Intermediate 106.8 107.7 103.4 103.8 103.9 104.0 104.4 103.9 104.4r 104.3r 104.5 104.1 V Materials 107.4 107.8 105.5 105.8 105.2 105.8 106.1 106.8 107.7 107.5 108.7 107.7 Industry groupings 88 Manufacturing 108.9 109.9 107.4 108.1 107.4 108.1 108.5 109.0 109.9" 109.6 110.0 109.6 9 Capacity utilization, manufacturing (percent)2 83.9 82.3 78.2 77.7 77.0 77.4 77.5 77.7 78.2r 77.8 77.9 77.5 10 Construction contracts3 105.2 95.3 89.5r 97.0 95.0 100.0 96.0 93.0 86.0 90.0 89.0 n.a. 11 Nonagricultural employment, total4 106.0 107.6 106.6 105.8 105.8 105.8 105.9 106.0 106.2 106.1 106.3 106.2 12 Goods-producing, total 102.5 101.0 96.4 95.5 95.2 95.2 95.2 95.2 95.3 95.0 95.0 94.5 13 Manufacturing, total 102.2 100.5 96.9 96.3 96.1 96.1 96.1 96.1 96.1 95.9" 95.9 95.4 14 Manufacturing, production worker.... 102.3 100.0 96.0 95.6 95.5 95.6 95.7 95.7 95.7 95.4 95.6 95.0 15 Service-producing 107.1 109.7 109.9 109.1 109.1 109.2 109.3 109.5 109.6 109.6r 109.9 109.9 16 Personal income, total 115.2 122.7 127.0 130.1 130.0 131.2 131.8 132.4r 132.5r 132.8 17 Wages and salary disbursements 114.4 121.3 124.4 126.5 126.2 127.6 128.0 127.8 128.6r 128.5r 128.7 n.a. 18 Manufacturing 110.6 113.5 113.6 115.4 113.7 114.5 114.6 115.0 115.5 115.0 115.1 n.a. 19 Disposable personal income 115.1 122.9 128.0 131.4 131.4 132.6 133.8 133.8r 134.2r 134.4r 134.7 20 Retail sales6 113.5 118.7 119.8 120.3 123.1 124.6 123.1 123.5 124.1 124.0r 125.2 124.6 Prices7 21 Consumer (1982-84=100) 124.0 130.7 136.2 137.9 138.1 138.6 139.3 139.5 139.7 140.2 140.5 140.9 22 Producer finished goods (1982=100) 113.6 119.2 121.7 121.9 121.8 122.1 122.2 122.4r 123.1 123.7 123.7 123.5 1. A major revision of the industrial production index and the capacity 6. Based on data from U.S. Bureau of the Census, Survey of Current Business. utilization rates was released in April 1990. See "Industrial Production: 1989 7. Based on data not seasonally adjusted. Seasonally adjusted data for changes Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April in the price indexes can be obtained from the Bureau of Labor Statistics, U.S. 1990), pp. 187-204. Department of Labor, Monthly Labor Review. 2. Ratio of index of production to index of capacity. Based on data from the NOTE. Basic data (not indexes) for series mentioned in notes 4, 5,and 6, and Federal Reserve, DRI McGraw-Hill, U.S. Department of Commerce, and other indexes for series mentioned in notes 3 and 7 can also be found in the Survey of sources. Current Business. 3. Index of dollar value of total construction contracts, including residential, Figures for industrial production for the latest month are preliminary, and many nonresidential, and heavy engineering, from McGraw-Hill Information Systems figures for the three months preceding the latest month have been revised. See Co., F.W. Dodge Division. "Recent Developments in Industrial Capacity and Utilization," Federal Reserve 4. Based on data from U.S. Department of Labor, Employment and Earnings. Bulletin, vol. 76 (June 1990), pp. 411-35. Series covers employees only, excluding personnel in the armed forces. 5. Based on data from U.S. Department of Commerce, Survey of Current Business. 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 1992 CCaatteeggoorryy 11998899 11999900 11999911 Jan. Feb. Mar. Apr. May June July Aug. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 188,601 190,216 191,883 192,7% 192,906 193,036 193,168 193,295 193,431 193,588 193,749 2 Labor force (including Armed Forces)' 126,077 126,954 127,421 128,083 128,309 128,604 128,830 129,148 129,525 129,498 129,3% 3 Civilian labor force 123,869 124,787 125,303 126,046 126,287 126,590 126,830 127,160 127,549 127,532 127,437 Employment 4 Nonagricultural industries 114,142 114,728 114,644 113,951 113,811 114,155 114,465 114,478 114,322 114,568 114,519 5 Agriculture 3,199 3,186 3,233 3,166 3,232 3,194 3,209 3,178 3,252 3,204 3,218 Unemployment 6 Number 6,528 6,874 8,426 8,929 9,244 9,242 9,155 9,504 9,975 9,760 9,700 7 Rate (percent of civilian labor force) 5.3 5.5 6.7 7.1 7.3 7.3 7.2 7.5 7.8 7.7 7.6 8 Not in labor force 62,524 63,262 64,462 64,713 64,597 64,432 64,338 64,147 63,906 64,090 64,353 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 108,329 109,971 108,975 108,100 108,142 108,200 108,377 108,496 108,423r 108, mf 108,517 10 Manufacturing 19,442 19,111 18,427 18,283 18,290 18,278 18,279 18,275 18,236r 18,247r 18,150 U Mining 693 711 697 657 653 651 646 641 634 633r 629 12 Contract construction 5,187 5,136 4,6% 4,587 4,582 4,603 4,605 4,632 4,600" 4,584r 4,577 13 Transportation and public utilities 5,644 5,826 5,823 5,746 5,753 5,754 5,746 5,745 5,745r 5,742 5,734 14 Trade 25,770 25,843 25,412 25,128 25,146 25,089 25,170 25,143 25,144r 25,151r 25,072 15 Finance 6,695 6,739 6,707 6,665 6,673 6,675 6,682 6,681 6,672r 6.6691 6,675 16 Service 27,120 28,240 28,778 28,577 28,584 28,643 28,707 28,833 28,854r 28,954r 28,976 17 Government 17,779 18,322 18,434 18,457 18,461 18,507 18,542 18,546 18,538r 18,620" 18,704 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 sue 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 U.S. Department of Labor, Employment and 3. Includes all full- and part-time employees who worked during, or received Earnings. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • November 1992 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1991 1992 1991 1992 1991 1992 Q3 Q4 Ql Q2r Q3 Q4 Ql Q2 Q3 Q4 Ql Q2r Output (1987=100) Capacity (percent of 1987 output) Capaci ty utilization rate (pe rcent) 1 Total industry 108.1 107.9 107.1 108.5 135.3 136.2 137.0 137.7 79.9 79.3 78.2 78.8 2 Manufacturing 108.5 108.6 108.0 109.5 137.9 138.9 139.7 140.6 78.7 78.2 77.3 77.9 3 Primary processing 104.1 104.1 104.0 105.4 128.1 128.8 129.3 129.6 81.2 80.8 80.5 81.3 4 Advanced processing 110.6 110.7 109.9 111.4 142.4 143.5 144.6 145.6 77.7 77.1 76.0 76.5 5 Durable goods 108.1 107.7 106.6 108.4 141.8 142.8 143.7 144.4 76.2 75.4 74.2 75.0 6 Lumber and products 95.1 95.1 98.5 96.6 125.4 125.7 125.9 126.1 75.8 75.7 78.2 76.6 / Primary metals 102.0 102.5 102.2 101.7 129.0 129.3 129.1 128.3 79.1 79.2 79.2 79.2 8 Iron and steel 100.3 103.2 103.8 101.6 134.0 134.5 134.1 132.7 74.8 76.7 77.4 76.6 9 Nonferrous 104.5 101.4 100.0 101.8 121.7 121.9 122.1 122.2 85.8 83.2 81.9 83.3 10 Nonelectrical machinery 123.5 122.7 122.1 125.8 161.2 162.8 164.3 165.9 76.6 75.4 74.3 75.8 11 Electrical machinery 111.2 110.4 110.5 111.8 145.3 146.6 147.9 149.1 76.5 75.3 74.7 75.0 12 Motor vehicles and parts 95.9 97.0 91.7 100.5 134.9 135.6 136.2 136.7 71.1 71.5 67.3 73.5 13 Aerospace and miscellaneous transportation equipment 105.2 102.8 99.3 96.8 138.7 139.6 140.4 140.9 75.9 73.7 70.8 68.7 14 Nondurable goods 109.1 109.7 109.8 110.9 132.9 133.8 134.8 135.6 82.1 82.0 81.5 81.8 15 Textile mill products 104.1 104.1 104.3 106.0 118.0 118.3 118.8 119.2 88.2 88.0 87.9 88.9 16 Paper and products 107.6 107.4 105.8 106.7 117.9 118.7 119.3 119.9 91.2 90.5 88.7 89.0 17 Chemicals and products 112.1 113.0 113.6 116.9 141.0 142.3 143.4 144.3 79.5 79.4 79.2 81.0 18 Plastics materials 125.4 126.2 124.4 130.5 142.6 146.1 148.7 150.5 87.9 86.4 83.7 86.8 19 Petroleum products 108.1 107.1 107.7 109.2 121.4 121.4 121.4 121.5 89.0 88.2 88.7 89.9 20 Mining 101.8 99.7 97.9 98.9 114.6 114.7 114.7 114.7 88.9 87.0 85.3 86.2 21 Utilities 110.4 109.4 107.0 107.5 128.8 129.2 129.5 129.8 85.7 84.7 82.6 82.8 22 Electric 115.2 111.6 109.7 110.3 124.7 125.2 125.6 126.0 92.4 89.1 87.3 87.6 Previous cycle2 Latest cycle3 1991 199 2 High Low High Low Aug. Jan. Feb. Mar. Apr. Mayr Juner Julyr Aug.p Capacity utilization rate (percent) 1 Total industry 89.2 72.6 87.3 71.8 79.8 78.0 78.3 78.4 78.7 79.1 78.7 79.0 78.5 2 Manufacturing 88.9 70.8 87.3 70.0 78.6 77.0 77.4 77.5 77.7 78.2 77.8 77.9 77.5 3 Primary processing 92.2 68.9 89.7 66.8 81.2 80.2 80.4 80.8 81.1 81.5 81.4 82.3 81.2 4 Advanced processing 87.5 72.0 86.3 71.4 77.5 75.7 76.1 76.1 76.3 76.8 76.3 76.2 76.1 5 Durable goods 88.8 68.5 86.9 65.0 76.0 73.8 74.5 74.3 74.6 75.5 74.9 75.2 75.0 6 Lumber and products 90.1 62.2 87.6 60.9 76.0 77.4 78.5 78.8 77.1 77.2 75.4 78.3 76.7 7 Primary metals 100.6 66.2 102.4 46.8 79.6 79.2 79.5 78.7 78.5 79.5 79.7 82.9 82.0 8 Iron and steel 105.8 66.6 110.4 38.3 75.0 78.1 77.4 76.7 75.8 77.0 77.0 81.0 79.5 9 Nonferrous 92.9 61.3 90.5 62.2 86.7 81.0 82.9 81.8 82.6 83.3 83.9 85.8 85.9 10 Nonelectrical machinery 96.4 74.5 92.1 64.9 76.5 74.1 74.2 74.5 75.1 76.4 76.0 76.7 77.2 11 Electrical machinery 87.8 63.8 89.4 71.1 76.8 74.6 74.8 74.8 74.7 75.3 75.0 75.0 75.0 12 Motor vehicles and parts .... 93.4 51.1 93.0 44.5 67.9 64.0 68.9 69.1 72.2 75.1 73.2 7711..00 7711..88 13 Aerospace and miscellaneous transportation equipment. 77.0 66.6 81.1 66.9 76.1 71.2 70.9 70.2 69.2 68.7 68.1 67.7 66.7 14 Nondurable goods 87.9 71.8 87.0 76.9 82.1 81.4 81.3 81.7 81.8 81.8 81.8 81.7 80.9 15 Textile mill products 92.0 60.4 91.7 73.8 88.8 86.9 88.2 88.5 89.3 89.6 87.9 89.5 88.4 16 Paper and products 96.9 69.0 94.2 82.0 90.4 89.9 87.6 88.5 89.3 88.3 89.3 8899..88 87.5 17 Chemicals and products 87.9 69.9 85.1 70.1 79.7 78.7 79.1 79.9 80.4 81.1 81.6 8800..88 80.1 18 Plastics materials 102.0 50.6 90.9 63.4 87.1 83.1 83.0 85.0 85.4 87.3 87.5 87.0 87.0 19 Petroleum products 96.7 81.1 89.5 68.2 88.4 87.8 88.1 90.3 90.8 89.3 89.4 89.8 86.8 20 94.4 88.4 96.6 80.6 88.5 85.3 85.7 84.9 86.3 86.9 85.4 87.5 86.3 21 Utilities 95.6 82.5 88.3 76.2 85.9 82.6 82.2 83.1 83.4 82.7 82.4 84.2 8833..11 22 Electric 99.0 82.7 88.3 78.7 92.7 87.1 86.8 88.1 88.2 87.5 87.1 89.5 8888..11 1. Data in this table also appear in the Board's G.17 (419) monthly statistical 2. Monthly high, 1973; monthly low, 1975. release. For ordering address, see inside front cover. For a detailed description of 3. Monthly highs, 1978 through 1980; monthly lows, 1982. the series, see "Recent Developments in Industrial Capacity and Utilization," Federal Reserve Bulletin, vol. 76 (June 1990), pp. 411-35. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A47 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 1987 1991 1992 1991 GGrroouupp por- avg. tion Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Mayr Juner Julyr Aug.p Index (1987 = 100) MAJOR MARKETS 1 Total index 100.0 107.1 108.0 108.4 108.4 108.1 107.4 106.6 107.2 107.6 108.1 108.9 108.5 109.2 108.6 2 Products 60.8 108.1 108.5 108.9 109.0 109.0 108.4 107.5 108.1 108.5 109.0 109.7 109.1 109.4 109.2 3 Final products 46.0 109.6 109.8 110.4 110.6 110.6 109.9 108.7 109.4 109.8 110.6 111.4 110.6 111.0 110.9 4 Consumer goods, total 26.0 107.5 108.4 109.4 109.7 110.0 109.1 108.1 108.8 109.3 110.1 110.8 109.8 110.2 109.7 5 Durable consumer goods 5.6 102.3 104.0 107.7 107.5 106.0 104.6 101.3 105.3 106.2 107.9 111.1 109.2 108.1 108.5 6 Automotive products 2.5 97.8 98.6 106.5 106.7 103.6 101.3 94.2 101.6 103.6 106.5 110.6 108.0 105.5 105.4 7 Autos and trucks 1.5 90.2 90.2 103.0 105.1 99.0 96.7 84.3 94.3 95.7 102.5 107.8 104.0 100.1 99.8 8 Autos, consumer .9 84.6 83.0 94.6 92.6 89.8 88.2 79.1 84.8 81.9 93.1 98.6 97.6 91.7 86.2 9 Trucks, consumer .6 99.6 102.2 117.1 126.1 114.5 111.0 93.0 110.2 118.8 118.3 123.3 114.7 114.3 122.8 10 Auto parts and allied goods... 1.0 109.3 111.3 111.8 109.1 110.5 108.2 109.1 112.6 115.5 112.5 114.8 114.0 113.6 113.8 11 Other 3.1 105.8 108.3 108.7 108.1 108.0 107.2 106.9 108.3 108.3 109.1 111.5 110.2 110.1 111.0 12 Appliances, A/C, and TV .8 99.5 99.6 104.1 102.1 102.3 98.9 99.6 102.9 103.5 103.4 107.4 106.2 101.4 109.2 13 Carpeting and furniture .9 99.4 103.9 101.8 101.8 101.6 101.5 101.1 102.4 102.5 104.4 105.9 103.5 104.3 104.0 14 Miscellaneous home goods ... 1.4 113.4 115.9 115.6 115.6 115.2 115.5 114.7 115.0 114.7 115.2 117.3 116.8 118.6 116.4 15 Nondurable consumer goods 20.4 109.0 109.6 109.8 110.3 111.1 110.3 110.0 109.8 110.2 110.7 110.7 110.0 110.8 110.0 16 Foods and tobacco 9.1 106.7 107.1 107.8 107.8 108.1 107.0 107.3 107.4 107.8 107.6 107.7 107.5 108.3 107.2 17 Clothing 2.6 93.5 94.8 95.2 96.3 96.5 96.2 95.0 95.2 95.1 95.3 96.4 95.6 96.7 96.0 18 Chemical products 3.5 115.8 117.4 117.3 117.0 117.9 118.0 118.1 118.3 119.4 120.8 121.4 121.9 121.1 121.6 19 Paper products 2.5 123.6 122.6 124.8 125.6 126.4 126.8 126.8 124.7 124.6 125.1 124.3 121.7 121.4 121.9 20 Energy 2.7 108.5 109.5 106.7 108.5 112.0 109.3 106.8 106.4 107.0 108.9 107.2 105.7 108.9 106.2 21 Fuels .7 103.5 104.0 104.4 103.5 103.6 104.3 103.8 103.5 103.7 105.1 104.0 104.4 105.5 100.3 22 Residential utilities 2.0 110.4 111.5 107.6 110.3 115.1 111.2 108.0 107.5 108.2 110.3 108.4 106.1 110.2 108.4 23 Equipment 20.0 112.2 111.6 111.8 111.9 111.4 110.9 109.4 110.2 110.4 111.3 112.3 111.7 112.0 112.4 24 Business equipment 13.9 121.5 121.3 122.2 122.3 121.8 121.4 119.9 121.0 121.5 123.0 124.5 124.2 124.5 125.5 25 Information processing and related .. 5.6 131.5 130.3 130.3 131.7 133.4 134.0 134.1 134.6 136.0 137.9 139.2 140.3 141.9 142.9 26 Office and computing 1.9 155.5 153.1 152.2 156.0 157.8 159.1 160.6 162.4 164.9 168.2 170.5 174.0 178.0 27 Industrial 4.0 108.0 108.6 108.2 106.8 104.2 102.3 100.7 101.3 101.3 101.7 103.4 102.9 103.7 103.4 28 Transit 2.5 126.8 126.7 132.7 133.1 130.5 129.5 124.2 129.2 128.9 131.7 133.3 131.8 128.5 131.9 29 Autos and trucks 1.2 88.6 86.2 99.3 101.1 96.5 96.1 84.9 94.7 95.0 101.3 105.6 101.7 97.7 100.6 30 Other 1.9 113.6 114.8 114.2 113.6 113.8 114.1 113.1 112.2 112.2 113.2 115.0 112.2 112.3 113.2 31 Defense and space equipment 5.4 91.1 89.8 89.1 89.1 88.8 88.1 86.7 86.2 85.6 84.7 84.2 83.6 83.0 82.6 32 Oil and gas well drilling .6 93.3 86.7 80.1 79.0 78.1 75.8 71.8 73.9 76.2 79.2 79.2 74.6 78.6 75.0 33 Manufactured homes .2 85.5 90.3 86.2 86.3 87.0 87.9 98.4 99.7 98.7 100.7 100.3 97.1 112.0 34 Intermediate products, total 14.7 103.4 104.4 104.3 104.1 103.9 103.8 103.9 104.0 104.4 103.9 104.4 104.3 104.5 104.1 35 Construction supplies 6.0 96.0 96.7 96.5 95.4 95.9 95.0 95.5 96.0 96.7 96.5 97.8 97.1 97.8 97.6 36 Business supplies 8.7 108.4 109.7 109.7 110.1 109.4 110.0 109.9 109.6 109.7 109.0 109.0 109.3 109.2 108.6 37 Materials 39.2 105.5 107.2 107.5 107.4 106.6 105.8 105.2 105.8 106.1 106.8 107.7 107.5 108.7 107.7 38 Durable goods materials 19.4 107.1 109.1 109.3 108.8 108.6 108.1 107.0 108.1 108.3 108.7 110.4 110.2 111.2 110.8 39 Durable consumer parts 4.2 96.4 100.1 101.3 101.6 100.5 97.0 95.3 97.1 97.9 99.3 102.5 102.7 101.6 101.4 40 Equipment parts 7.3 114.4 114.3 113.9 113.6 113.7 114.2 114.1 115.2 115.1 114.7 116.2 116.0 117.3 117.1 41 Other 7.9 106.0 109.0 109.3 108.2 108.3 108.4 106.7 107.5 107.5 108.1 109.2 108.7 110.6 109.9 42 Basic metal materials 2.8 106.0 110.2 109.5 107.7 108.1 108.1 105.1 107.3 106.3 106.3 108.3 107.7 112.0 111.4 43 Nondurable goods materials 9.0 105.9 107.8 108.3 109.6 107.7 107.1 107.3 107.1 108.9 109.4 109.7 110.6 110.9 109.3 44 Textile materials 1.2 97.0 101.5 99.5 101.8 99.9 98.5 98.9 101.5 102.0 103.2 102.9 101.8 103.7 101.5 45 Pulp and paper materials 1.9 106.9 108.2 110.4 112.0 108.6 109.6 107.4 106.8 107.8 109.2 107.8 110.8 111.1 107.9 46 Chemical materials 3.8 106.1 107.9 108.2 109.9 108.3 107.0 107.6 106.6 109.3 109.9 111.2 111.5 111.5 109.9 47 Other 2.1 109.7 110.9 111.3 111.2 110.1 109.7 111.2 111.2 112.7 112.2 112.4 113.4 113.8 113.7 48 Energy materials 10.9 102.3 103.3 103.6 103.1 102.2 100.4 100.4 100.5 100.1 101.3 101.3 100.4 102.6 101.0 49 Primary energy 7.2 102.4 104.5 103.8 102.8 100.9 100.4 100.5 100.6 98.2 99.8 99.7 100.5 102.5 100.2 50 Converted fuel materials 3.7 102.0 101.0 103.4 103.8 104.5 100.5 100.2 100.4 103.8 104.1 104.3 100.1 102.8 102.7 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.3 107.6 108.5 108.6 108.5 108.3 107.7 107.3 107.6 107.9 108.3 109.0 108.6 109.4 108.9 52 Total excluding motor vehicles and parts... 95.3 107.9 108.8 108.8 108.8 108.7 108.0 107.6 107.8 108.2 108.6 109.2 108.9 109.7 109.1 53 Total excluding office and computing machines 97.5 105.8 106.8 107.3 107.2 106.8 106.1 105.3 105.8 106.1 106.6 107.4 106.8 107.4 106.8 54 Consumer goods excluding autos and trucks 24.5 108.6 109.5 109.8 109.9 110.7 109.8 109.6 109.7 110.2 110.6 110.9 110.2 110.8 110.3 55 Consumer goods excluding energy 23.3 107.4 108.3 109.7 109.8 109.8 109.1 108.3 109.1 109.6 110.3 111.2 110.3 110.3 110.1 56 Business equipment excluding autos and trucks 12.7 124.8 124.7 124.4 124.4 124.3 123.8 123.3 123.6 124.1 125.2 126.4 126.4 127.1 128.0 57 Business equipment excluding office and computing equipment 12.0 116.0 116.2 117.3 116.9 116.0 115.3 113.3 114.3 114.5 115.7 117.1 116.2 115.9 116.7 58 Materials excluding energy 28.4 106.7 108.7 109.0 109.1 108.3 107.8 107.1 107.8 108.5 108.9 110.2 110.3 111.1 110.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • November 1992 2.13—Continued 1987 1991 1992 roup SIC pro- 1991 code por- avg. tion Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Mayr Juner Jul/ Aug." Index (1987 = 100) MAJOR INDUSTRIES 1 Total index 100.0 107.1 108.0 108.4 108.4 108.1 107.4 106.6 107.2 107.6 108.1 108.9 108.5 109.2 108.6 2 Manufacturing 84.4 107.4 108.4 108.9 109.0 108.6 108.1 107.4 108.1 108.5 109.0 109.9 109.6 110.0 109.6 3 Primary processing 26.7 102.4 104.1 104.4 104.7 104.1 103.5 103.6 103.9 104.5 105.0 105.6 105.7 106.8 105.5 4 Advanced processing 57.7 109.8 110.3 111.0 111.0 110.7 110.3 109.2 110.0 110.3 110.8 111.9 111.4 111.4 111.5 5 Durable goods 47.3 107.1 107.8 108.4 108.2 107.8 107.1 105.8 107.0 107.0 107.6 109.1 108.4 109.0 108.9 6 Lumber and products ... "24 2.0 94.2 95.3 95.2 93.8 96.4 95.2 97.4 98.8 99.2 97.2 97.4 95.1 98.9 96.9 7 Furniture and fixtures ... 25 1.4 99.1 101.3 101.2 100.5 99.9 100.6 98.7 98.1 98.6 110011..11 110033..33 110000..55 110011..33 110011..44 8 Clay, glass, and stone products 32 2.5 94.9 95.5 94.4 94.4 92.8 93.0 92.8 94.6 95.0 95.6 96.7 96.6 97.0 96.7 9 Primary metals 33 3.3 99.5 102.6 102.3 102.6 103.5 101.3 102.5 102.7 101.4 100.9 102.0 102.1 106.0 104.6 10 Iron and steel 331,2 1.9 98.0 100.6 100.8 102.4 105.6 101.7 105.0 103.7 102.5 100.9 102.2 101.8 106.7 104.4 11 Raw steel .1 97.3 102.4 100.9 101.3 99.1 97.6 103.3 102.7 98.8 99.9 98.5 101.5 105.3 101.0 12 Nonferrous 333-6,9 1.4 101.5 105.5 104.4 102.9 100.5 100.8 98.9 101.2 99.9 100.9 101.8 110022..55 110044..99 110055..00 13 Fabricated metal products 34 5.4 100.4 101.4 101.9 101.9 101.8 101.2 99.7 100.5 100.0 100.6 102.2 102.2 102.5 101.8 1144 Nonelectrical machinery. 35 8.6 123.5 123.3 123.1 123.5 122.8 121.9 121.4 121.9 122.9 124.1 126.7 112266..55 112288..11 112299..33 15 Office and computing machines 357 2.5 155.5 153.0 152.2 155.9 157.8 159.1 160.5 162.4 164.9 168.2 170.5 174.0 178.0 180.5 16 Electrical machinery .... 36 8.6 110.1 111.5 111.0 109.8 110.7 110.6 110.0 110.7 110.9 111.0 111122..33 111122..22 111122..44 111122..88 17 Transportation equipment 37 9.8 98.6 99.0 102.2 102.4 99.7 98.0 93.8 96.8 96.5 9988..00 9999..66 9988..11 9966..44 9966..44 18 Motor vehicles and parts 371 4.7 90.4 91.6 99.5 100.4 95.9 94.6 87.1 93.8 94.2 98.5 110022..77 110000..33 9977..33 9988..55 19 Autos and light trucks 2.3 89.4 89.1 101.8 103.2 97.6 95.5 83.5 92.9 93.7 110011..11 110066..55 110033..00 9988..99 9977..88 20 Aerospace and miscellaneous transportation equipment.. 372-6,9 5.1 106.0 105.6 104.6 104.3 103.1 101.2 99.8 99.6 98.6 97.4 96.8 96.2 95.7 94.4 2211 Instruments 38 3.3 118.2 116.9 118.1 118.2 118.7 119.0 118.3 118.6 118.6 119.0 119.8 118.4 118.2 118.1 22 Miscellaneous 39 1.2 119.3 123.2 121.5 120.6 120.7 121.0 121.2 120.0 120.0 118.9 118.4 117.7 119.8 118.7 23 Nondurable goods 37.2 107.9 109.0 109.6 110.1 109.6 109.5 109.5 109.6 110.4 110.7 110.9 111.1 111.2 110.5 24 Foods "20 8.8 108.6 108.7 109.5 109.4 110.1 109.6 109.2 109.6 110.2 109.6 109.3 109.4 110.2 109.4 25 Tobacco products 21 1.0 99.7 103.1 102.7 102.2 97.7 94.7 98.8 99.4 101.3 101.0 102.5 103.1 101.7 102.8 26 Textile mill products .... 22 1.8 100.5 104.7 103.2 105.5 104.4 102.5 103.1 104.7 105.3 106.3 106.8 105.0 107.0 105.8 27 Apparel products 23 2.4 96.2 98.3 98.1 98.7 98.8 99.0 97.5 97.7 97.8 98.0 99.0 98.3 99.3 98.3 28 Paper and products 26 3.6 105.1 106.5 108.0 109.0 106.1 107.0 107.1 104.6 105.8 107.0 105.8 107.3 108.1 105.4 29 Printing and publishing .. 27 6.4 112.3 112.3 113.3 114.4 114.2 114.5 114.8 114.4 113.8 113.7 113.4 113.0 112.3 112.8 30 Chemicals and products . 28 8.6 110.9 112.3 112.6 113.5 113.0 112.6 112.7 113.4 114.8 115.8 117.0 117.9 117.0 116.3 31 Petroleum products 29 1.3 107.5 107.3 108.6 106.0 106.7 108.6 106.6 106.9 109.7 111100..33 110088..55 110088..77 110099..11 110055..66 32 Rubber and plastic products 30 3.0 110.0 112.6 113.8 113.2 112.6 113.0 113.2 114.0 115.4 116.5 117.1 117.3 117.9 117.6 3333 Leather and products ... 31 .3 88.1 87.1 85.8 83.9 84.3 83.2 83.0 81.4 82.9 84.1 86.2 86.3 87.8 83.9 34 Mining 7.9 101.1 101.3 101.4 100.7 99.6 98.8 97.8 98.4 97.5 99.1 99.7 98.0 100.4 99.1 35 Metal "lO .3 150.2 155.5 153.1 146.5 151.5 154.0 144.2 152.9 155.8 154.2 166.4 154.0 165.4 163.8 36 Coal 11,12 1.2 109.2 110.8 110.1 107.9 108.4 107.6 107.3 107.9 103.0 104.0 107.6 98.6 112.0 106.4 37 Oil and gas extraction 13 5.7 95.8 95.7 96.0 96.0 94.1 93.0 92.4 92.7 91.9 94.2 93.4 93.9 94.0 93.0 38 Stone and earth minerals .. 14 .7 108.1 107.0 107.3 105.9 105.8 106.4 104.8 103.5 107.4 105.9 108.0 105.6 103.4 107.3 39 Utilities 7.6 109.2 110.7 109.7 109.4 111.0 107.9 106.8 106.4 107.7 108.2 107.3 107.1 109.5 108.2 40 Electric 49i,3PT 6.0 112.8 115.6 113.4 112.2 112.7 109.9 109.3 109.0 110.7 111.0 110.2 109.8 112.9 111.4 41 Gas 492,3PT 1.6 96.0 92.4 95.8 98.9 104.7 100.5 97.5 96.9 96.7 97.7 96.6 97.0 96.7 96.4 SPECIAL AGGREGATES 42 Manufacturing excluding motor vehicles and parts 79.8 108.4 109.3 109.5 109.5 109.3 108.9 108.6 108.9 109.3 109.6 110.3 110.2 110.7 111100..22 43 Manufacturing excluding office and computing machines 82.0 106.0 107.0 107.6 107.6 107.1 106.6 105.8 106.5 106.8 107.2 108.1 107.7 107.9 107.5 Gross value (billions of 1982 dollars, annual rates) MAJOR MARKETS 44 Products, total 1,734.8 1,880.0 1,885.5 1,901.8 1,911.4 1,904.9 1,888.9 1,869.5 1,889.7 1,902.8 l,918.7r 1,935.5 1,924.5 1,934.2 1,926.4 45 Final 1,350.9 1,481.8 1,484.5 1,501.5 1,510.0 1,504.1 1,488.0 1,468.7 1,490.8 1,501.5 l,518.2r 1,532.1 1,523.1 1,530.6 1,524.9 46 Consumer goods 833.4 879.8 882.7 898.3 902.4 902.2 894.5 877.6 890.2 896.2 905.6r 912.4 905.0 909.1 900.0 47 Equipment 517.5 602.0 601.8 603.3 607.6 601.8 593.5 591.1 600.6 605.3 612.7r 619.7 618.1 621.6 624.9 48 Intermediate 384.0 398.2 401.0 400.3 401.4 400.8 401.0 400.7 398.9 401.2 400.5r 403.4 401.4 403.6 401.4 1. Data in this table also appear in the Board's G.I7 (419) monthly statistical Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April release. For ordering address, see inside front cover. 1990), pp. 187-204. A major revision of the industrial production index and the capacity 2. Standard industrial classification, utilization rates was released in April 1990. See "Industrial Production: 1989 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A49 2.14 HOUSING AND CONSTRUCTION Monthly figures at seasonally adjusted annual rates, except as noted 1991 1992 IItteemm 11998899 11999900 11999911 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Private residential real estate activity (thousands of units, except as noted) NEW UNITS 1 Permits authorized 1,339 1,111 949 994 979 1,073 1,106 1,146 1,094 1,058 1,054 1,032 1,080 2 One-family 932 794 754 788 792 873 913 946 907 873 879 872 879 3 Two-or-more-family 407 317 195 206 187 200 193 200 187 185 175 160 201 4 Started 1,376 1,193 1,014 1,085 1,085 1,118 1,180 1,257 1,340 1,086 1,196 l,147r 1,120 5 One-family 1,003 895 840 887 907 972 989 1,109 1,068 933 1,019 999" 972 6 Two-or-more-family 373 298 174 198 178 146 191 148 272 153 177 148" 148 7 Under construction at end of period1.. 850 711 606 631 633 633 640 629 657 655 653R 645" 639 8 One-family 535 449 434 451 454 458 466 464 482 484 484R 484" 484 9 Two-or-more-family 315 262 173 180 179 175 174 165 175 171 169" 161" 155 10 Completed 1,423 1,308 1,091 1,073 1,021 1,021 1,043 1,097 1,127 1,067 1,204 1,191" 1,205 11 One-family 1,026 966 838 879 824 851 838 908 975 889 l,011r 989" 995 12 Two-or-more-family 396 342 253 194 197 170 205 189 152 178 193R 202" 210 13 Mobile homes shipped 198 188 171 171 171 176 192 197 197 199 189 194 211 Merchant builder activity in one-family units 14 Number sold 650 535 507 526 578 578 667 627 555 546 549 578 563 15 Number for sale at end of period1 ... 365 321 283 289 286 283 281 269 277 274 272 273 272 Price of units sold (thousands of dollars)2 16 Median 120.4 122.3 120.0 122.6 118.5 122.0 120.0 117.2 120.0 120.0 114.5 124.9 115.0 17 Average 148.3 149.0 147.0 147.4 141.7 143.0 144.2 144.8 144.8 145.0 146.3 147.1 137.5 EXISTING UNITS (one-family) 18 Number sold 3,346 3,211 3,219 3,150 3,230 3,310 3,220 3,490 3,510 3,490 3,460 3,350 3,450 Price of units sold (thousands of dollars) 19 Median 92.9 95.2 99.7 99.1 97.9 100.3 102.4 102.8 104.0 103.3 102.5 105.1 102.7 20 Average 118.0 118.3 127.4 126.4 124.9 127.3 130.5 128.8 130.2 130.6 130.6 133.7 132.2 Value of new construction (millions of dollars)3 CONSTRUCTION 21 Total put in place 443,401 442,066 400,955 406,114 401,247 398,736 407,121 411,767 421,512 423,104 426,049 424,416 421,959 22 Private 345,327 334,153 290,707 291,714 288,345 287,383 292,540 294,758 301,142 305,504 305,269 309,624 305,446 23 Residential 196,551 182,856 157,837 164,696 164,491 164,133 169,548 169,772 172,660 178,897 181,795 182,650 180,589 24 Nonresidential, total 148,776 151,297 132,870 127,018 123,854 123,250 122,992 124,986 128,482 126,607 123,474 126,974 124,857 25 Industrial buildings 20,412 23,849 22,281 21,119 21,566 22,411 21,258 21,651 23,721 21,291 21,029 20,402 20,478 26 Commercial buildings 65,496 62,866 48,482 44,301 41,612 40,898 41,196 41,591 42,108 40,731 39,638 43,208 39,595 27 Other buildings 19,683 21,591 20,797 21,162 20,114 20,480 19,751 20,630 21,479 21,380 21,993 22,054 22,256 28 Public utilities and other 43,185 42,991 41,310 40,436 40,562 39,461 40,787 41,114 41,174 43,205 40,814 41,310 42,528 29 Public 98,071 107,909 110,247 114,400 112,901 111,353 114,581 117,009 120,370 117,600 120,780 114,792 116,513 30 Military 3,520 2,664 1,837 1,141 1,790 2,633 2,039 2,206 2,548 2,329 2,668 2,503 2,258 31 Highway 28,837 31,154 29,918 30,098 29,594 29,562 30,221 32,744 30,895 31,407 32,571 31,372 32,179 32 Conservation and development... 5,009 4,607 4,958 6,068 6,611 5,363 5,480 5,283 6,197 5,909 5,820 5,929 5,504 33 Other 60,705 69,484 73,534 77,093 74,906 73,795 76,841 76,776 80,730 77,955 79,721 74,988 76,572 1. Not at annual rates. SOURCE. Bureau of the Census estimates for all series except (1) mobile homes, 2. Not seasonally adjusted. which are private, domestic shipments as reported by the Manufactured Housing 3. Recent data on value of new construction may not be strictly comparable Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices with data for previous periods because of changes by the Bureau of the Census in of existing units, which are published by the National Association of Realtors. All its estimating techniques. For a description of these changes, see Construction back and current figures are available from the originating agency. Permit Reports (C-30-76-5), issued by the Bureau in July 1976. authorizations are those reported to the Census Bureau from 17,000jurisdictions beginning in 1984. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • November 1992 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data except as noted Change from 12 Change from 3 months earlier months earlier (annual rate) Change from 1 month earlier IIInnndddeeexxx IIIttteeemmm llleeevvveeelll,,, 1991 1992 1992 AAAuuuggg 11999911 11999922 111999999222111 AAuugg.. AAuugg.. Sept. Dec. Mar. June Apr. May June July Aug. CONSUMER PRICES2 (1982-84=100) 1 All items 3.8 3.1 3.0 3.2 3.5 2.6 .2 .1 .3 .1 .3 140.9 2 Food 2.3 1.5 -2.3 2.7 1.5 -1.2 -.1 -.4 .1 -.1 .9 138.0 i Energy items -.7 2.4 1.2 3.6 -6.9 12.5 .4 .6 2.0 .3 -.2 105.4 4 All items less food and energy 4.6 3.5 4.6 3.1 4.8 2.8 .3 .2 .2 .2 .2 147.7 Commodities 4.5 2.7 4.4 .6 5.3 2.1 .2 .4 .0 .2 .2 132.2 6 Services 4.7 3.9 4.6 4.3 4.8 2.9 .3 .1 .3 .3 .3 156.6 PRODUCER PRICES (1982=100) 7 Finished goods 2.0 1.5 1.3 1.0 1.0 3.0 ,3r .2r .2 .1 .1 123.5 8 Consumer foods -1.3 -.1 -4.4 -1.0 .3 -1.6 -,3r ~.3r .2 .0 .7 123.2 9 Consumer energy 6.2 1.9 3.7 -.5 -7.0 16.1 ,7r .8r 2.3 -.4 -.1 80.3 10 Other consumer goods 3.7 2.4 3.6 2.4 3.6 2.4 ,4r ,4r -.3 .2 -.1 136.9 11 Capital equipment 2.8 1.8 1.3 1.9 3.5 .9 .2r ,lr -.1 .2 .1 128.8 Intermediate materials 12 Excluding foods and feeds .0 1.0 .4 -1.7 .0 5.0 .1 .4 .7 .1 .0 115.6 13 Excluding energy .1 1.0 -1.3 .0 1.7 1.3 .0 .1 .2 .2 .2 122.1 Crude materials 14 Foods -9.3 1.0 -6.6 -4.9 11.8 1.5 -1.2 .9 .8 -1.7 -.4 103.7 15 Energy -9.4 1.6 -.5 5.3 -26.6 44.8 3.9? 3.2r 2.3 1.1 .2 80.3 lb Other -10.3 3.6 -4,9 -5.9 15.0 3.5 ,3r ,4r .2 1.3 .1 130.5 1. Not seasonally adjusted. SOURCE. Bureau of Labor Statistics. 2. Figures for consumer prices are for all urban consumers and reflect a rental-equivalence measure of homeownership. 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 1991r 1992 AAccccoouunntt 11998899 11999900 11999911 Q2 Q3 Q4 Ql Q2 GROSS DOMESTIC PRODUCT 1 Total 5,250.8 5,522.2 5,677.5 5,657.6 5,713.1 5,753.3 5,840.2 5,898.6 By source 2 Personal consumption expenditures 3,523.1 3,748.4 3,887.7 3,871.9 3,914.2 3,942.9 4,022.8 4,053.9 3 Durable goods 459.4 464.3 446.1 441.4 453.0 450.4 469.4 469.5 4 Nondurable goods 1,149.5 1,224.5 1,251.5 1,254.2 1,255.3 1,251.4 1,274.1 1,277.3 5 Services 1,914.2 2,059.7 2,190.1 2,176.3 2,205.9 2,241.1 2,279.3 2,307.2 6 Gross private domestic investment 832.3 799.5 721.1 710.2 732.8 736.1 722.4 771.9 7 Fixed investment 798.9 793.2 731.3 732.0 732.6 726.9 738.2 762.2 8 Nonresidential 568.1 577.6 541.1 545.8 538.4 528.7 531.0 549.2 9 Structures 193.3 201.1 180.1 185.2 175.6 169.7 170.1 169.0 10 Producers' durable equipment 374.8 376.5 360.9 360.6 362.8 358.9 360.8 380.2 11 Residential structures 230.9 215.6 190.3 186.2 194.2 198.2 207.2 213.0 12 Change in business inventories 33.3 6.3 -10.2 -21.8 .2 9.2 -15.8 9.7 13 Nonfarm 31.8 3.3 -10.3 -27.0 -1.2 14.5 -13.3 9.0 14 Net exports of goods and services -79.7 -68.9 -21.8 -15.3 -27.1 -16.0 -8.1 -36.6 15 Exports 508.0 557.0 598.2 594.3 602.3 622.9 628.1 625.9 16 Imports 587.7 625.9 620.0 609.6 629.5 638.9 636.2 662.5 17 Government purchases of goods and services 975.2 1,043.2 1,090.5 1,090.8 1,093.3 1,090.3 1,103.1 1,109.4 18 Federal 401.6 426.4 447.3 449.9 447.2 440.8 445.0 445.4 19 State and local 573.6 616.8 643.2 640.8 646.0 649.5 658.0 664.0 By major type of product 20 Final sales, total 5,217.5 5,515.9 5,687.7 5,679.4 5,712.9 5,744.2 5,855.9 55,,888888..99 21 Goods 2,063.6 2,160.1 2,192.8 2,200.9 2,194.9 2,188.4 2,233.6 2,229.8 22 Durable 891.2 920.6 907.7 916.8 910.8 905.7 923.6 930.7 23 Nondurable 1,172.5 1,239.5 1,285.1 1,284.1 1,284.1 1,282.7 1,310.0 1,299.1 24 Services 2,642.2 2,846.4 3,030.3 3,013.8 3,053.6 3,090.3 3,142.2 3,175.4 25 Structures 511.7 509.4 464.7 464.7 464.4 465.5 480.1 483.7 26 Change in business inventories 33.3 6.3 -10.2 -21.8 .2 9.2 -15.8 9.7 27 Durable goods 25.2 -.9 -19.3 -26.5 -7.0 -8.1 -19.3 9.8 28 Nondurable goods 8.1 7.2 9.0 4.8 7.2 17.3 3.5 -.1 MEMO 29 Total GDP in 1987 dollars 4,838.0 4,877.5 4,821.0 4,817.1 4,831.8 4,838.5 4,873.7 4,891.0 NATIONAL INCOME 30 Total 4,249.5 4,468.3 4,544.2 4,529.2 4,555.4 4,599.1 4,679.4 4,719.2 31 Compensation of employees 3,100.2 3,291.2 3,390.8 3,379.6 3,407.0 3,433.8 3,476.3 3,506.4 32 Wages and salaries 2,586.4 2,742.9 2,812.2 2,804.3 2,824.4 2,845.0 2,877.6 2,901.3 33 Government and government enterprises 478.5 514.8 543.5 543.4 544.3 546.4 554.6 561.4 34 Other 2,107.9 2,228.0 2,268.7 2,260.9 2,280.0 2,298.6 2,323.0 2,339.9 35 Supplement to wages and salaries 513.8 548.4 578.7 575.2 582.6 588.7 598.7 605.1 36 Employer contributions for social insurance 261.9 277.4 290.4 289.1 292.0 293.7 299.4 301.5 37 Other labor income 251.9 271.0 288.3 286.1 290.6 295.0 299.2 303.6 38 Proprietors' income1 347.3 366.9 368.0 370.4 367.1 377.9 393.6 397.9 39 Business and professional1 307.0 325.2 332.2 329.1 337.6 340.0 353.6 359.8 40 Farm1 40.2 41.7 35.8 41.3 29.5 37.9 40.1 38.1 41 Rental income of persons2 -13.5 -12.3 -10.4 -12.3 -10.3 -6.6 -4.5 3.3 42 Corporate profits1 362.8 361.7 346.3 347.3 341.2 347.1 384.0 390.6 43 Profits before tax 342.9 355.4 334.7 332.3 336.7 332.3 366.1 379.1 44 Inventory valuation adjustment -17.5 -14.2 3.1 9.9 -4.8 .7 -5.4 -15.9 45 Capital consumption adjustment 37.4 20.5 8.4 5.1 9.3 14.1 23.3 27.4 46 Net interest 452.7 460.7 449.5 444.4 450.5 446.9 430.0 420.9 1. With inventory valuation and capital consumption adjustments. 3. For after-tax profits, dividends, and the like, see table 1.48. 2. With capital consumption adjustment. SOURCE. U.S. Department of Commerce, Survey of Current Business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 Domestic Nonfinancial Statistics • November 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 Ql Q2 Q3 Q4 Ql PERSONAL INCOME AND SAVING 1 Total personal income 4,380.3 4,664.2 4,828.3 4,806.9 4,846.2 4,907.2 4,980.5 5,028.8 2 Wage and salary disbursements 2,586.4 2,742.8 2,812.2 2,804.7 2,824.4 2,845.0 2,877.6 2,901.3 3 Commodity-producing industries 724.2 745.6 737.4 734.6 738.8 741.5 736.8 742.8 4 Manufacturing 542.2 556.1 556.9 553.4 559.0 563.9 559.9 564.5 5 Distributive industries 607.0 634.6 647.4 647.0 651.1 652.9 660.9 663.0 6 Service industries 776.8 847.8 883.9 879.4 890.2 904.3 925.3 934.1 7 Government and government enterprises 478.5 514.8 543.6 543.8 544.3 546.4 554.6 561.4 8 Other labor income 251.9 271.0 288.3 286.1 290.6 295.0 299.2 303.6 9 Proprietors' income1 347.3 366.9 368.0 370.4 367.1 377.9 393.6 397.9 10 Business and professional 307.0 325.2 332.2 329.1 337.6 340.0 353.6 359.8 11 Farm1 40.2 41.7 35.8 41.3 29.5 37.9 40.1 38.1 12 Rental income of persons -13.5 -12.3 -10.4 -12.3 -10.3 -6.6 -4.5 3.3 13 Dividends 126.5 140.3 137.0 136.7 135.6 134.3 133.9 136.6 14 Personal interest income 668.2 694.5 700.6 696.2 701.8 703.3 684.8 675.7 15 Transfer payments 625.0 685.8 771.1 762.4 777.1 799.8 842.7 859.7 16 Old-age survivors, disability, and health insurance benefits ... 325.1 352.0 382.0 378.9 384.2 390.6 405.7 412.1 17 LESS: Personal contributions for social insurance 211.4 224.8 238.4 237.4 240.1 241.5 246.8 249.4 18 EQUALS: Personal income 4,380.3 4,664.2 4,828.3 4,806.9 4,846.2 4,907.2 4,980.5 5,028.8 19 LESS: Personal tax and nontax payments 593.3 621.3 618.7 617.2 618.6 622.3 619.6 616.1 20 EQUALS: Disposable personal income 3,787.0 4,042.9 4,209.6 4,189.7 4,227.6 4,284.9 4,360.9 4,412.7 21 LESS: Personal outlays 3,634.9 3,867.3 4,009.9 3,994.4 4,036.6 4,065.5 4,146.3 4,176.6 22 EQUALS: Personal saving 152.1 175.6 199.6 195.3 191.0 219.4 214.6 236.1 MEMO Per capita (1987 dollars) 23 Gross domestic product 19,555.6 19,513.0 19,077.1 19,090.6 19,094.0 19,066.0 1199,,115588..55 1199,,117766..66 24 Personal consumption expenditures 13,028.9 13,043.6 12,824.1 12,837.6 12,847.9 12,802.6 12,930.2 12,889.2 25 Disposable personal income 14,005.0 14,068.0 13,886.0 13,891.0 13,876.0 13,913.0 14,017.0 14,030.0 26 Saving rate (percent) 4.0 4.3 4.7 4.7 4.5 5.1 4.9 5.4 GROSS SAVING 27 Gross saving 741.8 718.0 708.2 701.3 679.4 698.2 677.5 692.1 28 Gross private saving 819.4 854.1 901.5 896.9 884.9 934.8 950.1 973.4 29 Personal saving 152.1 175.6 199.6 195.3 191.0 219.4 214.6 236.1 30 Undistributed corporate profits 86.9 75.7 75.8 78.1 69.0 78.3 104.0 99.5 31 Corporate inventory valuation adjustment -17.5 -14.2 3.1 9.9 -4.8 .7 -5.4 -15.9 Capital consumption allowances 32 Corporate 352.4 368.3 383.0 338822..55 383.5 386.3 338866..11 339900..99 33 Noncorporate 228.0 234.6 243.1 241.0 241.4 250.7 245.3 246.9 34 Government surplus, or deficit (-), national income and product accounts -77.5 -136.1 -193.3 -195.6 -205.6 -236.6 -272.6 -281.3 35 Federal -122.3 -166.2 -210.4 -212.2 -221.0 -258.7 -289.2 -299.6 36 State and local 44.8 30.1 17.1 16.5 15.4 22.0 16.6 18.3 37 Gross investment 742.9 723.4 730.1 728.4 709.9 714.6 706.5 720.6 38 Gross private domestic 832.3 799.5 721.1 710.2 732.8 736.1 722.4 771.9 39 Net foreign -89.3 -76.1 9.0 18.2 -22.9 -21.5 -16.0 -51.3 40 Statistical discrepancy 1.1 5.4 21.9 27.1 30.5 16.4 29.0 28.5 1. With inventory valuation and capital consumption adjustments. SOURCE. U.S. Department of Commerce, Survey of Current Business. 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A53 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data seasonally adjusted, except as noted1 1991 Q2 Q3 Q4 Qlr Q2P 1 Balance on current account.,. -101,142 -90,428 -3,682 2,431 -11,087 -7,218 -5,903 -17,788 2 Merchandise trade balance . -115,668 -108,853 -73,436 -16,397 -20,174 -18,539 -17,222 -24,418 3 Merchandise exports 361,697 388,705 415,962 103,324 104,151 107,851 107,946 107,580 4 Merchandise imports -477,365 -497,558 -489,398 -119,721 -124,325 -126,390 -125,168 -131,998 5 Military transactions, net -6,837 -7,818 -5,524 -1,427 -995 -540 -624 -641 6 Other service transactions, net 32,604 39,873 50,821 12,209 13,018 13,676 14,468 13,613 7 Investmentincome.net 14,366 19,287 16,429 3,931 3,076 2,458 4,474 1,377 8 U.S. government grants -10,773 -17,597 24,487 8,214 -1,986 78 -2,620 -3,011 9 U.S. government pensions and other transfers -2,517 -2,945 -3,462 -7% -793 -1,080 -858 -1,140 0 Private remittances and other transfers -12,316 -12,374 -12,9% -3,303 -3,233 -3,271 -3,521 -3,568 11 Change in U.S. government assets other than official reserve assets, net (increase, -) 1,271 2,304 3,397 -420 3,180 -437 -38 -209 12 Change in U.S. official reserve assets (increase, -). -25,293 -2,158 5,763 1,014 3,877 1,225 -1,057 1,464 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -535 -192 -177 -190 6 -23 -172 -168 15 Reserve position in International Monetary Fund. 471 731 -367 72 -114 17 111 1 16 Foreign currencies -25,229 -2,697 6,307 1,132 3,986 1,232 -9% 1,631 17 Change in U.S. private assets abroad (increase, -). -90,923 -56,467 -71,379 -7,644 -17,426 -44,947 -3,155 -6,987 18 Bank-reported claims -51,255 7,469 -4,753 -1,846 2,403 -23,219 15,859 12,592 19 Nonbank-reported claims 11,398 -2,477 5,526 2,304 -298 1,269 4,764 20 U.S. purchases of foreign securities, net -22,070 -28,765 -45,017 -11,783 -12,403 -11,305 -8,703 —8,573 21 U.S. direct investments abroad, net -28,9% -32,694 -27,135 3,681 -7,128 -11,692 -15,075 -11,006 22 Change in foreign official assets in United States (increase, +) .. 8,489 33,908 18,407 -4,178 4,115 12,819 21,192 21,071 23 U.S. Treasury securities 149 29,576 15,815 -3,553 5,624 12,619 14,909 11,615 24 Other U.S. government obligations 1,383 667 1,301 -219 474 1,075 540 1,699 25 Other U.S. government liabilities ^ 146 1,866 1,600 421 654 -344 % 503 26 Other U.S. liabilities reported by U.S. banks3 4,976 3,385 -1,668 -942 -2,732 -914 5,534 7,329 27 Other foreign official assets 1,835 -1,586 1,359 115 95 383 113 -75 28 Change in foreign private assets in United States (increase, +). 205,205 65,471 48,573 7,137 18,818 36,110 -2,629 22,016 29 U.S. bank-reported liabilities3 63,382 16,370 -13,678 -27,411 8,508 23,465 -4,474 -5,133 U.S. nonbank-reported liabilities 5,565 4,906 -405 -1,275 1,575 725 1,942 Foreign private purchases of U.S. Treasury securities, net 29,618 -2,534 16,241 13,289 -1,306 1,408 -828 io,288 Foreign purchases of other U.S. securities, net 38,767 1,592 34,918 15,212 10,012 4,832 4,551 10,872 Foreign direct investments in United States, net 67,873 45,137 11,497 7,322 29 5,680 -3,820 5,989 34 Allocation of special drawing rights . 0 0 0 0 0 0 0 0 35 Discrepancy 2,394 47,370 -1,078 1,660 -1,478 2,447 -8,410 -19,567 36 Due to seasonal adjustment 883 -6,137 613 4,023 343 37 Before seasonal adjustment 2,394 -1,078 777 4,659 1,835 -12,433 -19,910 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) -25,293 -2,158 5,763 1,014 3,877 1,225 -1,057 1,464 39 Foreign official assets in United States, excluding line 25 (increase, +) 8,343 32,042 16,807 -4,599 3,461 13,163 21,0% 20,568 40 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) 10,738 1,707 -5,604 -2,699 -4,288 1,023 2,459 -2,205 1. Seasonal factors not calculated for lines 12-16, 18-20, 22-34, and 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. U.S. Department of Commerce, Survey of Current Business. brokers and dealers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • November 1992 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data seasonally adjusted 1992 IItteemm 11998899 11999900 11999911 Jan. Feb. Mar. Apr. May Juner July" 1 Exports of domestic and foreign merchandise, (F.A.S. value), excluding grant-aid shipments 363,812 393,592 421,730 35,467 37,654 37,085 36,406 35,718 38,165 37,332 2 General imports (customs value), including merchandise for immediate consumption plus entries into bonded warehouses 473,211 495,311 487,129 41,266 40,948 42,668 43,469 42,859 44,893 45,154 3 Trade balance -109,399 -101,718 -65,399 -5,799 -3,294 -5,584 -7,063 -7,141 -6,729 -7,822 1. The Census basis data differ from merchandise trade data shown in table Jan. 1, 1987, Census data have been released forty-five days after the end of the 3.10, lines 3-5, U.S. International Transactions Summary, because of coverage month; the previous month is revised to reflect late documents. Total exports and and timing. On the export side, the largest difference is the exclusion of military the trade balance reflect adjustments for undocumented exports to Canada. sales (which are combined with other military transactions and reported sepa- Components may not sum to totals because of rounding. rately in table 3.10, line 6). On the import side, this table includes imports of gold, SOURCE. FT900, Summary of U.S. Export and Import Merchandise Trade ship purchases, imports of electricity from Canada, and other transactions; (U.S. Department of Commerce, Bureau of the Census). military payments are excluded and shown separately in table 3.10, line 6. Since 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period Asset 1991 Feb. Mar. Apr. May June July 1 Total 74,609 83,316 77,719 75,088 74,657 74,712 74,587 77,092 77,370 2 Gold stock, including Exchange Stabilization Fund1 11,059 11,058 11,057 11,058 11,057 11,057 11,057 11,059 11,059 3 Special drawing rights2'3 9,951 10,989 11,240 11,020 10,947 10,930 11,315 11,597 11,702 4 Reserve position in International Monetary Fund 9,048 9,076 9,488 8,996 8,994 8,968 9,175 9,381 9,625 5 Foreign currencies 44,551 52,193 45,934 44,014 43,659 43,757 43,040 45,055 44,984 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 1992 AAsssseett 11998899 11999900 11999911 Feb. Mar. Apr. May June July Aug." 1 Deposits 589 369 968 264 262 206 217 219 264 297 Held in custody 2 U.S. Treasury securities 224,911 278,499 281,107 297,834 300,277 303,413 307,562 307,337 316,431 318,328 3 Earmarked gold 13,456 13,387 13,303 13,305 13,304 13,304 13,295 13,268 13,261 13,261 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 1992 AAccccoouunntt 11998899 11999900 11999911 Jan. Feb. Mar. Apr. May June July ASSETS All foreign countries 1 Total payable in any currency 545,366 556,925 548,901 547,903 550,520 562,212 549,858 564,816 564,466 537,363 2 Claims on United States 198,835 188,496 176,301 180,251 178,188 193,434 177,992 182,554 183,933 171,911 3 Parent bank 157,092 148,837 137,509 142,476 142,181 157,129 143,790 145,974 147,626 136,287 4 Other banks in United States 17,042 13,296 12,884 11,675 10,837 11,612 9,993 11,640 10,418 9,576 5 Nonbanks 24,701 26,363 25,908 26,100 25,170 24,693 24,209 24,940 25,889 26,048 6 Claims on foreigners 300,575 312,449 303,934 297,400 301,900 299,890 302,916 314,569 311,990 311,535 7 Other branches of parent bank 113,810 135,003 111,729 103,456 108,052 112,190 111,369 115,688 115,664 112,499 8 Banks 90,703 72,602 81,970 82,332 83,904 79,311 83,562 85,923 84,467 85,0% 9 Public borrowers 16,456 17,555 18,652 18,223 18,421 18,328 18,743 19,194 20,162 19,645 10 Nonbank foreigners 79,606 87,289 91,583 93,389 91,523 90,061 89,242 93,764 91,697 94,295 11 Other assets 45,956 55,980 68,666 70,252 70,432 68,888 68,950 67,693 68,543 53,917 12 Total payable in U.S. dollars 382,498 379,479 363,941 359,686 365,162 381,113 364,748 370,290 369,561 349,038 13 Claims on United States 191,184 180,174 169,662 174,026 172,539 187,744 173,337 177,311 177,638 166,506 14 Parent bank 152,294 142,962 133,476 138,885 138,916 153,859 141,264 142,874 144,287 133,119 15 Other banks in United States 16,386 12,513 12,025 10,924 10,006 10,956 9,255 11,012 10,016 9,135 16 Nonbanks 22,504 24,699 24,161 24,217 23,617 22,929 22,818 23,425 23,335 24,252 17 Claims on foreigners 169,690 174,451 167,010 157,338 163,623 163,877 162,%7 167,054 168,586 162,831 18 Other branches of parent bank 82,949 95,298 78,114 70,637 75,087 78,067 75,342 77,165 76,912 72,516 19 Banks 48,396 36,440 41,635 39,964 42,488 39,671 41,250 41,845 43,095 41,448 20 Public borrowers 10,961 12,298 13,685 13,202 13,136 13,217 12,994 12,994 13,723 13,320 21 Nonbank foreigners 27,384 30,415 33,576 33,535 32,912 32,922 33,381 35,050 34,856 35,547 22 Other assets 21,624 24,854 27,269 28,322 29,000 29,492 28,444 25,925 23,337 19,701 United Kingdom 23 Total payable in any currency 161,947 184,818 175,599 174,467 172,479 169,139 170,775 174,925 171,027 159,317 24 Claims on United States 39,212 45,560 35,257 36,620 34,655 37,015 35,451 37,369 38,0% 38,763 25 Parent bank 35,847 42,413 31,931 32,765 31,302 34,048 32,379 34,433 35,343 35,542 26 Other banks in United States 1,058 792 1,267 1,392 1,211 1,158 1,228 970 756 1,065 27 Nonbanks 2,307 2,355 2,059 2,463 2,142 1,809 1,844 1,966 1,997 2,156 28 Claims on foreigners 107,657 115,536 109,692 108,046 107,645 101,491 104,467 107,795 104,270 105,990 29 Other branches of parent bank 37,728 46,367 35,735 33,357 33,924 33,463 34,061 35,331 36,952 35,359 30 Banks 36,159 31,604 36,394 36,537 37,349 33,499 36,126 37,548 34,783 36,777 31 Public borrowers 3,293 3,860 3,306 3,377 3,144 3,060 3,108 3,165 2,995 3,128 32 Nonbank foreigners 30,477 33,705 34,257 34,775 33,228 31,469 31,172 31,751 29,540 30,726 33 Other assets 15,078 23,722 30,650 29,801 30,179 30,633 30,857 29,761 28,661 14,564 34 Total payable in U.S. dollars 103,208 116,762 105,974 103,833 102,341 102,283 102,285 104,392 102,737 98,828 35 Claims on United States 36,404 41,259 32,418 33,801 31,788 34,464 33,298 35,185 35,376 36,133 36 Parent bank 34,329 39,609 30,370 31,239 29,724 32,645 31,022 33,059 33,751 33,936 37 Other banks in United States 843 334 822 901 678 725 853 677 627 785 38 Nonbanks 1,232 1,316 1,226 1,661 1,386 1,094 1,423 1,449 998 1,412 39 Claims on foreigners 59,062 63,701 58,791 55,281 55,985 52,306 54,129 56,615 56,888 56,264 40 Other branches of parent bank 29,872 37,142 28,667 26,827 26,747 25,933 25,922 27,482 28,541 26,751 41 Banks 16,579 13,135 15,219 14,106 15,438 13,154 14,829 15,348 15,380 15,930 42 Public borrowers 2,371 3,143 2,853 2,707 2,657 2,623 2,545 2,463 2,474 2,653 43 Nonbank foreigners 10,240 10,281 12,052 11,641 11,143 10,596 10,833 11,322 10,493 10,930 44 Other assets 7,742 11,802 14,765 14,751 14,568 15,513 14,858 12,592 10,473 6,431 Bahamas and Cayman Islands 45 Total payable in any currency 176,006 162,316 168,326 167,847 169,134 175,893 162,871 167,139 168,963 153,691 46 Claims on United States 124,205 112,989 115,244 116,687 115,562 122,762 112,080 115,633 114,467 102,850 47 Parent bank 87,882 77,873 81,520 84,705 84,661 91,549 82,823 84,041 83,316 72,107 48 Other banks in United States 15,071 11,869 10,907 9,626 8,969 9,809 8,115 9,729 9,118 8,045 49 Nonbanks 21,252 23,247 22,817 22,356 21,932 21,404 21,142 21,863 22,033 22,698 50 Claims on foreigners 44,168 41,356 45,229 42,866 44,033 44,285 41,929 42,828 45,600 41,886 51 Other branches of parent bank 11,309 13,416 11,098 10,549 11,528 11,278 10,156 9,311 9,392 8,678 52 Banks 22,611 16,310 20,174 18,998 19,311 19,645 18,406 19,658 21,548 18,837 53 Public borrowers 5,217 5,807 7,161 6,600 6,545 6,599 6,332 6,459 7,084 6,728 54 Nonbank foreigners 5,031 5,823 6,796 6,719 6,649 6,763 7,035 7,400 7,576 7,643 55 Other assets 7,633 7,971 7,853 8,294 9,539 8,846 8,862 8,678 8,8% 8,955 56 Total payable in U.S. dollars 170,780 158,390 163,771 163,277 164,710 171,320 158,196 162,066 163,313 147,905 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 • November 1992 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data1—Continued 1992 Account 1989 1990 1991 Feb. Mar. Apr. May June LIABILITIES All foreign countries 57 Total payable in any currency 545,366 556,925 548,901 547,903 550,520 562,212 549,858 564,816 564,466 537,363 58 Negotiable certificates of deposit (CDs) 23,500 18,060 16,284 16,156 15,988 14,498 12,757 14,010 13,040 12,753 59 To United States 197,239 189,412 198,121 189,282 191,047 210,357 196,635 198,897 204,929 192,044 60 Parent bank 138,412 138,748 136,431 127,532 123,775 142,551 138,273 136,195 143,474 133,008 61 Other banks in United States 11,704 7,463 13,260 13,683 12,674 14,137 15,075 13,944 14,009 11,833 62 Nonbanks 47,123 43,201 48,430 48,067 54,598 53,669 43,287 48,758 47,446 47,203 63 To foreigners 2%,850 311,668 288,254 295,861 299,046 292,523 296,580 308,394 302,376 301,873 64 Other branches of parent bank ... 119,591 139,113 112,033 105,873 108,744 113,314 111,968 115,235 116,878 114,358 65 Banks 76,452 58,986 63,097 72,407 71,346 62,924 65,055 68,391 65,865 65,217 66 Official institutions 16,750 14,791 15,596 16,704 16,972 15,697 16,083 19,465 16,399 18,058 67 Nonbank foreigners 84,057 98,778 97,528 100,877 101,984 100,588 103,474 105,303 103,234 104,240 68 Other liabilities 27,777 37,785 46,242 46,604 44,439 44,834 43,886 43,515 44,121 30,693 69 Total payable in U.S. dollars 396,613 383,522 370,561 360,521 363,744 380,384 365,920 373,679 374,506 354,561 70 Negotiable CDs 19,619 14,094 11.909 11,442 11,515 10,278 8,470 9,643 8,475 8,526 71 To United States 187,286 175,654 185,286 176,834 179,340 198,349 185,533 187,438 192,792 179,352 72 Parent bank 132,563 130,510 129,669 121,098 117,272 135,761 131,844 130,007 136,273 125,604 73 Other banks in United States 10,519 6,052 11,707 12,191 11,532 13,036 14,217 12,840 13,251 10,816 74 Nonbanks 44,204 39,092 43.910 43,545 50,536 49,552 39,472 44,591 43,268 42,932 75 To foreigners 176,460 179,002 158,993 156,339 156,744 156,216 157,139 162,011 158,532 155,338 76 Other branches of parent bank ... 87,636 98,128 76,601 70,839 74,466 77,492 75,780 77,000 77,608 73,708 77 Banks 30,537 20,251 24,156 25,781 23,665 21,910 22,569 24,063 23,470 22,932 78 Official institutions 9,873 7,921 10,304 10,555 10,652 9,625 10,413 13,102 10,119 11,543 79 Nonbank foreigners 48,414 52,702 47,932 49,164 47,961 47,189 48,377 47,846 47,335 47,155 80 Other liabilities 13,248 14,772 14,373 15,906 16,145 15,541 14,778 14,587 14,707 11,345 United Kingdom 81 Total payable in any currency ... 161,947 184,818 175,599 174,467 172,479 169,139 170,775 174,925 171,027 159,317 82 Negotiable CDs 20,056 14,256 11,333 10,993 10,581 9,677 7,324 8,458 7,612 7,731 83 To United States 36,036 39,928 37,720 31,018 30,631 35,364 36,610 33,236 36,660 37,164 84 Parent bank 29,726 31,806 29,834 23,112 23,464 27,937 29,317 25,637 28,201 29,104 85 Other banks in United States . 1,256 1,505 1,438 2,325 1,891 1,201 2,011 1,638 1,326 1,315 86 Nonbanks 5,054 6,617 6,448 5,581 5,276 6,226 5,282 5,961 7,133 6,745 87 To foreigners 92,307 108,531 98,167 104,868 104,432 96,566 99,804 106,603 100,340 100,738 88 Other branches of parent bank 27,397 36,709 30,054 27,561 27,864 27,937 28,239 30,429 31,464 30,205 89 Banks 29,780 25,126 25,541 31,929 30,686 25,881 27,046 27,549 25,315 25,155 90 Official institutions 8,551 8,361 9,670 10,432 10,685 9,277 9,539 12,732 10,167 11,091 91 Nonbank foreigners 26,579 38,335 32,902 34,946 35,197 33,471 34,980 35,893 33,394 34,287 92 Other liabilities 13,548 22,103 28,379 27,588 26,835 27,532 27,037 26,628 26,415 13,684 93 Total payable in U.S. dollars 108,178 116,094 108,755 103,232 100,882 101,602 100,799 102,783 101,901 97,565 94 Negotiable CDs 18,143 12,710 10,076 9,236 9,061 8,562 6,136 6,967 5,750 6,139 95 To United States 33,056 34,697 33,003 26,419 26,261 30,993 32,510 28,936 32,300 32,178 96 Parent bank 28,812 29,955 28,260 21,663 21,788 26,272 27,904 24,435 26,720 27,351 97 Other banks in United States . 1,065 1,156 1,177 1,954 1,639 1,032 1,796 1,184 1,084 857 98 Nonbanks 3,179 3,586 3,566 2,802 2,834 3,689 2,810 3,317 4,496 3,970 99 To foreigners 50,517 60,014 56,626 57,522 55,216 52,059 52,625 57,489 54,262 52,894 100 Other branches of parent bank 18,384 25,957 20,800 18,498 18,863 18,792 18,136 19,497 20,918 18,634 101 Banks 12,244 9,488 11,069 13,061 11,188 9,861 9,435 10,799 9,848 9,399 102 Official institutions 5,454 4,692 7,156 7,580 7,698 6,628 6,998 9,915 7,049 7,808 103 Nonbank foreigners 14,435 19,877 17,601 18,383 17,467 16,778 18,056 17,278 16,447 17,053 104 Other liabilities 6,462 8,673 9,050 10,055 10,344 9,988 9,528 9,391 9,589 6,354 Bahamas and Cayman Islands 105 Total payable in any currency .. 176,006 162,316 168,326 167,847 169,134 175,893 162,871 167,139 168,963 153,691 106 Negotiable CDs 678 646 1,173 1,382 1,709 932 1,546 1,646 1,894 1,330 107 To United States 124,859 114,738 129,872 130,484 131,171 139,196 124,605 128,891 130,815 115,589 108 Parent bank 75,188 74,941 79,394 79,585 73,744 82,050 76,086 76,779 80,998 67,356 109 Other banks in United States 8,883 4,526 10,231 10,045 9,733 11,696 12,060 11,085 11,708 9,641 110 Nonbanks 40,788 35,271 40,247 40,854 47,694 45,450 36,459 41,027 38,109 38,592 111 To foreigners 47,382 44,444 35,200 34,106 34,425 34,002 34,899 35,021 34,637 35,136 112 Other branches of parent bank 23,414 24,715 17,388 16,590 17,050 17,100 16,933 16,842 16,799 17,668 113 Banks 8,823 5,588 5,662 5,497 5,054 5,139 6,009 6,346 6,075 6,390 114 Official institutions 1,097 622 572 450 490 536 736 731 770 862 115 Nonbank foreigners 14,048 13,519 11,578 11,569 11,831 11,227 11,221 11,102 10,993 10,216 116 Other liabilities 3,087 2,488 2,081 1,875 1,829 1,763 1,821 1,581 1,617 1,636 117 Total payable in U.S. dollars 171,250 157,132 163,603 162,836 164,403 171,255 158,247 162,280 163,951 148,744 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 1992 IItteemm 11999900 11999911 Jan. Feb. Mar. Apr. May Juner July" 1 Total1 344,529* 360,495 372,277 375,249' 381,589 385,595 394,688r 401,788 404,041 By type 2 Liabilities reported by banks in the United States 39,880 38,361 41,427 42,507 43,895 44,537 47,381r 51,345 49,310 3 U.S. Treasury bills and certificates 79,424 92,692 92,711 94,731 102,143 102,968 111,224 109,278 114,781 U.S. Treasury bonds and notes 4 Marketable 202,487 203,677 212,364 212,171 209,035 210,747 208,062 213,356 212,702 5 Nonmarketable , 4,491r 4,858 4,892 4,922 4,956 4,989 5,021 4,625 4,582 6 U.S. securities other than U.S. Treasury securities 18,247 20,907 20,883 20,918 21,560 22,354 23,000 23,184 22,666 By area 7 Western Europe1 167,191 168,316 173,122 173,129 178,003 179,199 118855,,33770011 191,178 193,811 8 Canada 8,671 7,460 7,642 8,251 7,016 7,855 9,347 9,302 9,902 9 Latin America and Caribbean 21,184r 33,554 34,659 35,658 38,015 39,130 39,732r 39,433 39,248 10 Asia 138,096 139,463 146,127 147,830 148,688 148,646 149,097r 150,250 150,176 11 Africa , 1,434 2,092 2,409 2,408 2,011 2,392 2,792 3,265 3,218 12 Other countries 7,955 9,608 8,316 7,971 7,854 8,371 8,348 8,358 7,684 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 States1 Payable in Foreign Currencies Millions of dollars, end of period 1991 1992 IItteemm 11998888 11998899 11999900 Sept. Dec. Mar. June 1 Banks' liabilities 74,980 67,835 70,477 63,130 74,921 67,702 70,592 2 Banks' claims 68,983 65,127 66,796 63,479 73,065 60,704 58,824 25,100 20,491 29,672 29,567 26,201 23,130 23,343 4 Other claims 43,884 44,636 37,124 33,912 46,864 37,574 35,481 5 Claims of banks' domestic customers 364 3,507 6,309 2,348 3,274 2,862 4,428 1. Data on claims exclude foreign currencies held by U.S. monetary 2. Assets owned by customers of the reporting bank located in the United authorities. 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 • November 1992 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 1990 Jan. Feb. Mar. Apr. Mayr Juner Julyp HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 736,878 759,634 755,673 751,877 755,059 773,100 769,065 784,749 785,821 2 Banks' own liabilities 577,498 577,229 574,395 571,682 574,213 582,113 578,230 583,373 586,478 3 Demand deposits 22,032 21,723 20,320 19,309 18,906 19,286 19,045 19,608 20,928 4 Time deposits2 168,780 168,017 159,844 148,133 145,836 147,860 153,315 150,236 151,928 5 Other. 67,823 65,822 66,001 72,948 75,861 75,341 75,956 82,604 84,709 6 Own foreign offices4 318,864 321,667 328,230 331,292 333,610 339,626 329,914 330,925 328,913 8 7 Ba U nk .S s . ' T cu r s e t a o s d u i r a y l b lia il b ls i l a it n ie d s 5 c ertificates6 1 9 5 1 9 , , 1 3 0 8 0 0 1 9 8 6 2 , , 7 4 9 0 6 5 1 1 8 1 1 0 , , 2 7 7 3 8 4 1 1 1 8 0 0 , ,1 0 9 00 5 1 11 8 2 0 , , 1 8 7 4 2 6 1 11 9 9 0 , , 8 9 8 8 2 7 1 1 9 2 0 0 , , 8 9 3 2 5 4 2 1 0 3 1 0 , , 3 3 7 9 6 2 1 1 9 2 9 8 , , 3 6 4 7 3 3 9 Other negotiable and readily transferable 10 Othe in r struments 4 1 8 9 , , 7 5 5 2 4 6 6 1 8 7 , , 0 5 3 7 1 8 5 1 1 8 , , 8 6 8 6 0 4 5 1 2 7 , , 4 7 5 4 0 5 5 1 1 6 , , 7 8 8 9 0 4 5 1 2 8 , , 6 4 7 2 6 9 5 1 2 7 , , 1 79 1 7 4 5 1 1 8 , , 9 9 8 9 9 5 5 1 2 8 , , 6 0 5 2 0 0 11 Nonmonetary international and regional organizations 4,894 5,918 8,947 9,895 10,615 10,469 9,947 11,096 12,101 12 Banks' own liabilities 3,279 4,540 6,793 8,112 8,879 8,567 8,064 9,141 9,878 13 Demand deposits 96 36 43 39 35 144 29 46 40 14 Time deposits 927 1,050 2,764 2,049 2,058 1,442 1,642 2,303 3,572 15 Other3 2,255 3,455 3,986 6,024 6,786 6,981 6,393 6,792 6,266 1 1 6 7 Ba U nk .S s . ' T cu r s e t a o s d u i r a y l b lia il b ls i l a it n ie d s 5 c ertificates6 1,6 19 16 7 1,3 3 7 6 8 4 2 1 , , 1 7 5 3 4 0 1 1 , , 7 3 8 2 3 8 1 1, , 3 7 1 3 7 6 1 1, , 2 9 2 0 5 2 1 1 , , 4 8 4 8 2 3 1 1, , 4 9 6 5 1 5 2 1 , , 2 6 2 8 3 7 18 Other negotiable and readily transferable instruments7 1,417 1,014 424 455 417 637 441 494 534 19 Other 2 0 0 0 2 40 0 0 2 20 Official institutions9 113,481 119,303 131,053 134,138 137,238 146,038 147,505 158,605 160,623 21 Banks' own liabilities 31,108 34,910 34,376 37,917 38,623 39,795 40,584 43,477 47,457 22 Demand deposits 2,196 1,924 2,642 1,480 1,297 1,342 1,360 1,320 1,635 23 Time deposits 10,495 14,359 16,474 16,307 14,655 17,667 18,587 19,066 17,738 24 Other3 18,417 18,628 15,260 20,130 22,671 20,786 20,637 23,091 28,084 25 Banks' custodial liabilities5 82,373 84,393 96,677 96,221 98,615 106,243 106,921 115,128 113,166 26 U.S. Treasury bills and certificates6 76,985 79,424 92,692 92,711 94,731 102,143 102,968 111,224 109,278 27 Other negotiable and readily transferable instruments7 5,028 4,766 3,879 3,422 3,697 4,019 3,812 3,717 3,602 28 Other 361 203 106 187 81 141 187 286 29 Banks10 515,275 540,805 521,576 516,474 517,477 527,372 521,926 527,242 526,020 30 Banks' own liabilities 454,273 458,470 458,329 451,905 453,730 461,186 456,151 460,706 459,259 31 Unaffiliated foreign banks 135,409 136,802 130,099 120,613 120,120 121,560 126,237 129,781 130,346 32 Demand deposits 10,279 10,053 8,631 8,807 8,369 8,543 8,753 9,229 9,698 33 Time deposits2 90,557 88,541 82,936 73,938 74,535 74,246 79,632 77,073 80,035 34 Other3 34,573 38,208 38,532 37,868 37,216 38,771 37,852 43,479 40,613 35 Own foreign offices4 318,864 321,667 328,230 331,292 333,610 339,626 329,914 330,925 328,913 3 3 7 6 Ba U nk .S s . ' T cu r s e t a o s d u i r a y l b lia il b ls i l a it n ie d s 5 c ertificates6 61 9 , ,3 0 6 02 7 8 1 2 0 , , 3 6 3 6 5 9 6 7 3 , , 4 2 7 4 1 7 64 7 , , 5 71 6 3 9 63 7 . , 7 7 4 3 7 3 66 8 , ,3 1 4 86 4 65 8 , , 7 4 7 1 5 0 6 8 6 , ,5 9 3 4 6 6 6 8 6, , 7 9 6 2 1 7 38 Other negotiable and readily transferable instruments7 5,124 5,341 5,694 5,853 5,999 6,733 7,147 7,044 6,647 39 Other 46,510 66,325 50,082 51,003 50,015 51,109 50,218 50,546 51,187 40 Other foreigners 103,228 93,608 94,097 91,370 89,729 89,221 89,687 87,806 87,077 41 Banks' own liabilities 88,839 79,309 74,897 73,748 72,981 72,565 73,431 70,049 69,884 42 Demand deposits 9,460 9,711 9,004 8,983 9,205 9,257 8,903 9,013 9,555 4 4 3 4 T O i t m he e r 3 d eposits 6 1 6 2 , ,5 8 7 01 7 64 5 , , 0 5 6 3 7 0 57 8, , 2 6 2 7 3 0 55 8 , ,9 8 2 3 6 9 54 9 , , 5 1 8 8 8 8 54 8 , , 5 8 0 0 5 3 5 1 3 1 , , 4 0 5 7 4 4 5 9 1 , , 2 7 4 9 2 4 5 9 0 , , 7 5 4 8 6 3 45 Banks' custodial liabilities5 14,389 14,299 19,200 17,622 16.748 16,656 16,256 17,757 17,193 46 U.S. Treasury bills and certificates6 4,551 6,339 8,841 8,248 8,391 8,170 8,104 8,761 8,781 47 Other negotiable and readily transferable instruments 7,958 6,457 8,667 8,015 6,781 7,040 6,397 7,740 7,237 48 Other 1,880 1,503 1,692 1,359 1,576 1,446 1,755 1,256 1,175 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 7,203 7,073 7,456 7,855 8,049 8,110 7,624 7,642 7,350 1. Reporting banks include all types of depository institution, as well as some 6. Includes nonmarketable certificates of indebtedness and Treasury bills brokers and dealers. issued to official institutions of foreign countries. 2. Excludes negotiable time certificates of deposit, which are included in 7. Principally bankers acceptances, commercial paper, and negotiable time "Other negotiable and readily transferable instruments." certificates of deposit. 3. Includes borrowing under repurchase agreements. 8. Principally the International Bank for Reconstruction and Development, the 4. For U.S. banks, includes amounts due to own foreign branches and foreign Inter-American Development Bank, and the Asian Development Bank. Excludes subsidiaries consolidated in Consolidated Report of Condition filed with bank "holdings of dollars" of the International Monetary Fund. regulatory agencies. For agencies, branches, and majority-owned subsidiaries of 9. Foreign central banks, foreign central governments, and the Bank for foreign banks, consists principally of amounts due to head office or parent foreign International Settlements. bank, and foreign branches, agencies, or wholly owned subsidiaries of head office 10. Excludes central banks, which are included in "Official institutions." or parent foreign bank. 5. Financial claims on residents of the United States, other than long-term securities, held by or through reporting banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported Data A59 3.17—Continued 1992 IItteemm 11998899 11999900 11999911 Jan. Feb. Mar. Apr. May June* July" AREA 1 Total, all foreigners 736,878 759,634 755,673 751,877 755,059 773,100 769,065 784,749* 785,821 776,739 2 Foreign countries 731,984 753,716 746,726 741,982 744,444 762,631 759,118 773,653* 773,720 766,335 Europe 237,501 254,452 249,010 244,530 246,160 255,965 262,201 273,386r 279,472 283,066 4 Austria 1,233 1,229 1,193 1,041 1,030 1,230 1,219 1,337 1,510 1,444 5 Belgium and Luxembourg 10,648 12,382 13,337 13,348 15,156 16,253 15,818 17,346 16,720 16,797 6 Denmark 1,415 1,399 937 991 997 892 961 1,331 1,263 1,348 7 Finland 570 602 1,341 893 623 1,014 1,005 764 843 719 8 France 26,903 30,946 31,808 29,186 26,449 26,036 27,667 27,005 30,132 28,897 9 Germany 7,578 7,485 8,619 7,859 9,514 9,556 9,272 8,319 8,018 8,%5 10 Greece 1,028 934 765 873 895 1,058 1,134 1,254 1,374 995 11 Italy 16,169 17,735 13,541 10,798 9,554 9,915 10,035 10,055 10,362 10,164 12 Netherlands 6,613 5,350 7,161 7,965 7,322 9,250 9,352 9,572 9,456 9,653 N Norway 2,401 2,357 1,866 1,922 1,398 1,286 899 1,429 1,359 1,421 14 Portugal 2,418 2,958 2,184 1,114 2,540 2,071 2,217 2,391 2,530 2,654 15 Spain 4,364 7,544 11,391 9,371 10,653 13,504 14,435 14,316 15,844 15,290 16 Sweden 1,491 1,837 2,222 1,887 2,544 2,106 2,888 2,007 4,125 3,710 17 Switzerland 34,496 36,690 37,236 35,658 34,709 37,103 33,603 36,663* 35,987 39,554 18 Turkey 1,818 1,169 1,598 1,476 1,677 1,600 1,362 1,691 1,580 1,788 19 United Kingdom 102,362 109,555 100,257 102,334 102,160 103,319 108,023 112,828* 111,712 111,873 20 Yugoslavia 1,474 928 622 493 529 504 569 524 555 547 21 Others in Western Europe 13,563 11,689 9,224 13,764 14,017 15,410 17,164 19,911* 21,560 22,758 22 U.S.S.R 350 119 241 161 238 168 287 436 440 609 23 Other Eastern Europe 608 1,545 3,467 3,396 4,155 3,690 4,291 4,207 4,102 3,880 24 Canada 18,865 20,349 21,581 18,665 20,456 20,929 20,500 22,556 20,358 23,397 25 Latin America and Caribbean 311,028 332,997 345,253 349,731 348,552 350,883 341,804 339,611* 339,041 325,009 26 Argentina 7,304 7,365 7,758 7,899 7,878 8,310 8,654 9,381 9,704 10,169 27 Bahamas 99,341 107,386 100,743 101,291 99,736 102,118 98,431 99,774 101,321 91,969 28 Bermuda 2,884 2,822 3,178 3,658 3,478 3,364 3,368 3,009 3,558 4,848 29 Brazil 6,351 5,834 5,942 5,785 5,760 5,745 5,752 5,399 5,616 5,552 30 British West Indies 138,309 147,321 162,816 165,462 167,122 166,628 160,954 158,515* 156,706 151,609 31 Chile 3,212 3,145 3,284 3,322 3,408 3,623 3,506 3,792 3,702 3,620 32 Colombia 4,653 4,492 4,662 4,627 4,713 4,972 4,915 4,902 4,721 4,653 33 Cuba 10 11 2 6 5 11 9 6 3 12 34 Ecuador 1,391 1,379 1,232 1,248 1,217 1,168 1,128 1,150 1,124 1,073 35 Guatemala 1,312 1,541 1,594 1,554 1,549 1,539 1,489 1,438 1,445 1,420 36 Jamaica 209 257 231 234 227 271 234 242 309 271 37 Mexico 15,423 16,650 19,957 20,372 20,319 21,540 21,362 20,842* 19,489 19,606 38 Netherlands Antilles 6,310 7,357 5,592 6,272 6,231 5,205 5,986 5,347 5,313 5,536 39 Panama 4,362 4,574 4,695 4,349 4,404 4,158 4,216 4,100 4,286 4,002 40 Peru 1,984 1,294 1,249 1,233 1,221 1,187 1,094 1,098 1,155 1,130 41 Uruguay 2,284 2,520 2,111 2,313 2,158 2,054 2,171 2,118 2,182 2,188 42 Venezuela 9,482 12,271 13,181 13,520 12,424 12,190 11,874 11,705 11,448 10,936 43 Other 6,206 6,779 7,026 6,586 6,702 6,800 6,661 6,793* 6,959 6,415 44 156,201 136,844 120,491 119,173 120,104 125,745 125,276 128,188* 124,646 124,923 China 45 People's Republic of China 1,773 2,421 2,625 2,739 2,607 2,677 2,751 2,364* 2,377 2,292 46 Republic of China (Taiwan) 19,588 11,246 11,500 10,955 10,594 10,602 10,480 10,265* 9,973 10,271 47 Hong Kong 12,416 12,754 14,365 15,151 14,967 14,722 16,248 17,990 17,095 16,840 48 India 780 1,233 2,418 2,297 2,256 2,028 1,792 1,671 1,715 1,566 49 Indonesia 1,281 1,238 1,463 1,037 1,276 1,516 1,109 1,133 1,387 1,256 50 Israel 1,243 2,767 2,015 2,193 2,137 2,536 3,791 3,432 2,976 2,848 51 Japan 81,184 67,076 47,041 46,076 44,771 49,528 47,337 46,183 44,261 45,882 52 Korea (South) 3,215 2,287 2,535 2,433 2,754 2,827 2,975 3,132* 2,839 3,287 53 Philippines 1,766 1,585 2,449 2,256 2,462 2,638 2,266 1,630* 1,813 1,970 54 Thailand 2,093 1,443 2,252 2,933 3,224 3,330 3,147 6,990 4,586 4,015 55 Middle Eastern oil-exporting countries 13,370 15,829 15,752 15,901 18,410 19,311 18,614 18,297* 18,983 19,827 56 Other 17,491 16,965 16,076 15,202 14,646 14,030 14,766 15,101* 16,641 14,869 57 3,824 4,630 4,824 5,042 4,919 4,886 4,864 5,430 5,806 5,515 58 Egypt 686 1,425 1,621 1,620 1,632 1,337 1,610 2,001 2,540 2,323 59 Morocco 78 104 79 86 82 90 88 77 87 85 60 South Africa 206 228 228 201 199 191 188 399 248 269 61 Zaire 86 53 31 28 30 35 27 26 29 17 62 Oil-exporting countries 1,121 1,110 1,082 1,204 1,214 1,428 1,277 1,257 1,232 1,211 63 Other 1,648 1,710 1,783 1,903 1,762 1,805 1,674 1,670 1,670 1,610 64 Other 4,564 4,444 5,567 4,841 4,253 4,223 4,473 4,482 4,397 4,425 65 Australia 3,867 3,807 4,464 3,619 3,065 3,100 3,575 3,211 3,192 3,066 66 Other 697 637 1,103 1,222 1,188 1,123 898 1,271 1,205 1,359 67 Nonmonetary international and regional organizations 4,894 5,918 8,947 9,895 10,615 10,469 9,947 11,0%* 12,101 10,404 68 International15 3,947 4,390 6,451 7,439 8,292 8,063 7,199 8,183* 9,126 6,485 69 Latin American regional 684 1,048 1,181 1,422 1,500 1,785 1,788 1,903 2,356 2,699 70 Other regional1 263 479 1,315 1,034 823 621 960 1,010 619 1,220 11. Includes the Bank for International Settlements and Eastern European 15. Principally the International Bank for Reconstruction and Development. countries not listed in line 23. Excludes "holdings of dollars" of the International Monetary Fund. 12. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania. 16. Principally the Inter-American Development Bank. 13. Comprises Bahrain, Iran, Iraq, Kuwait, Oiman, Qatar, Saudi Arabia, and 17. Asian, African, Middle Eastern, and European regional organizations, United Arab Emirates (Trucial States). except the Bank for International Settlements, which is included in "Other 14. Comprises Algeria, Gabon, Libya, and Nigeria. Western Europe." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics • November 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 1992 Area and country 11998899 11999900 11999911 Jan. Feb. Mar. Apr. May Juner 1 Total, all foreigners 534,492 511,543 514,375 509,490 508,876 513,200 507,181 504,79Ir 511,607 2 Foreign countries 530,630 506,750 508,002 504,884 502,336 506,737 502,302 499,900r 506,061 3 Europe 119,025 113,093 114,310 112,655 110,850 112,752 123,719 120,739r 126,202 4 Austria 415 362 327 211 447 375 444 456 433 5 Belgium and Luxembourg 6,478 5,473 6,158 6,724 7,451 7,005 6,%7 6,487 6,166 6 Denmark 582 497 686 792 709 737 871 994 1,436 7 Finland 1,027 1,047 1,912 1,854 1,586 1,321 1,475 1,536 1,521 8 France 16,146 14,468 15,112 15,179 13,742 14,062 13,706 14,031 14,440 9 Germany 2,865 3,343 3,371 3,305 3,405 3,788 3,117 4,044 3,311 10 Greece 788 727 553 550 562 537 567 492 506 11 Italy 6,662 6,052 8,242 8,000 7,346 8,584 9,835 10,282 10,619 12 Netherlands 1,904 1,761 2,539 2,664 2,454 2,268 2,688 2,642 2,267 13 Norway 609 782 669 801 665 687 569 73 lr 722 14 Portugal 376 292 344 360 350 368 361 398 367 15 Spain 1,930 2,668 1,844 2,487 2,120 3,310 3,726 2,687 3,880 16 Sweden 1,773 2,094 2,335 2,756 2,928 2,636 3,062 3,007 6,745 17 Switzerland 6,141 4,202 4,540 4,497 3,921 3,375 4,095 4,144 3,973 18 Turkey 1,071 1,405 1,063 1,062 1,076 943 927 1,130 976 19 United Kingdom 65,527 65,151 60,435 56,624 57,082 5577,,992200 66,365 62,509 63,922 20 Yugoslavia 1,329 1,142 824 822 810 880088 781 735r 697 21 Others in Western Europe2 1,302 597 789 1,152 1,116 879 821 894 771 22 U.S.S.R 1,179 530 1,970 2,331 2,491 2,659 2,824 2,948 3,035 23 Other Eastern Europe 921 499 597 484 589 490 518 592 415 24 Canada 15,451 16,091 15,094 14,845 15,849 15,441 15,093 16,460r 16,396 25 Latin America and Caribbean 230,438 231,506 246,006 250,236 245,565 251,917 239,573 238,546r 243,557 26 Argentina 9,270 6,967 5,869 5,823 5,834 5,788 5,949 5,956 5,396 27 Bahamas 77,921 76,525 87,173 89,258 84,183 88,866 82,118 84,668 83,141 28 Bermuda 1,315 4,056 2,191 3,535 4,444 3,649 6,377 4,283 4,951 29 Brazil 23,749 17,995 11,845 12,419 12,746 12,375 12,321 12,183 12,020 30 British West Indies 68,749 88,565 107,831 107,627 106,758 109,403 100,777 100,352 106,650 31 Chile 4,353 3,271 2,805 2,817 2,746 2,779 2,922 3,055 3,227 32 Colombia 2,784 2,587 2,425 2,374 2,330 2,339 2,322 2,328 2,304 33 Cuba 1 0 0 0 0 0 2 0 0 34 Ecuador 1,688 1,387 1,053 1,044 1,034 993 986 939 936 35 Guatemala 197 191 228 214 230 233 216 171 173 36 Jamaica 297 238 158 157 158 152 150 143 150 37 Mexico 23,376 14,851 16,611 17,059 17,365 17,359 17,411 16,944 16,499 38 Netherlands Antilles 1,921 7,998 1,126 1,112 898 1,180 1,265 904 920 39 Panama 1,740 1,471 1,563 1,651 1,662 1,707 1,837 l,926r 2,199 40 Peru 771 663 739 735 669 644 715 666 719 41 Uruguay 929 786 599 546 604 604 685 717 775 42 Venezuela 9,652 2,571 2,527 2,610 2,611 2,406 2,229 2,046r 2,215 43 Other 1,726 1,384 1,263 1,255 1,293 1,440 1,291 1,265 1,282 44 Asia 157,474 138,722 125,358 119,7% 122,616 119,700 116,746 117,234r 112,498 China 45 People's Republic of China 634 620 747 813 699 719 660 729 685 46 Republic of China (Taiwan) 2,776 1,952 2,087 1,914 1,881 1,969 2,008 1,808 1,778 47 Hong Kong 11,128 10,648 9,715 9,852 9,721 10,582 8,520 9.127 8,389 48 India 621 655 441 445 418 518 504 475 458 49 Indonesia 651 933 952 1,012 1,043 1,079 1,045 l,132r 1,085 50 Israel 813 774 855 873 943 901 836 874 888 51 Japan 111,300 90,699 84,813 80,585 80,247 74,595 72,106 74,410r 69,250 52 Korea (South) 5,323 5,766 6,045 5,6% 6,292 6,420 6,220 5,796r 5,927 53 Philippines 1,344 1,247 1,910 1,849 1,789 1,831 1,690 1,618 1,648 54 Thailand 1,140 1,573 1,713 1,633 1,621 1,599 1,618 1,703 1,756 55 Middle Eastern oil-exporting countries' 10,149 10,749 8,284 8,073 10,976 12,284 14,557 13,448r 14,499 56 Other 11,594 13,106 7,796 7,051 6,986 7,203 6,982 6,114r 6,135 57 Africa 5,890 5,445 4,928 4,870 4,741 4,758 4,818 4,582r 4,545 58 Egypt 502 380 294 255 223 271 242 218 256 59 Morocco 559 513 575 591 550 547 547 529 527 60 South Africa 1,628 1,525 1,235 1,217 1,189 1,176 1,239 1.128 1,070 61 Zaire 16 16 4 4 4 4 4 4 4 62 Oil-exporting countries 1,648 1,486 1,298 1,116 1,112 1,164 1,160 1,162 1,159 63 Other 1,537 1,525 1,522 1,687 1,663 1,5% 1,626 l,541r 1,529 64 Other 2,354 1,892 2,306 2,482 2,715 2,169 2,353 2,339 2,863 65 Australia 1,781 1,413 1,665 1,473 1,478 1,388 1,424 l,197r 1,725 66 Other 573 479 641 1,009 1,237 781 929 l,142r 1,138 67 Nonmonetary international and regional organizations6 3,862 4,793 6,373 4,606 6,540 6,463 4,879 4,891 5,546 1. Reporting banks include all types of depository institutions, as well as some 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and 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 1992 CCllaaiimm 11998899 11999900 11999911 Jan. Feb. Mar. Apr. Mayr Juner July" 1 Total 555555599999993333333,,,,,,,000000088888887777777 555555577777779999999,,,,,,,000000044444444444444 555555577777779999999,,,,,,,666666677777779999999 555555577777776666666,,,,,,,555555555555554444444 555555566666665555555,,,,,,,222222255555553333333 22 BBaannkkss'' ccllaaiimmss 555555533333334444444,,,,,,,444444499999992222222 555555511111111111111,,,,,,,555555544444443333333 555555511111114444444,,,,,,,333333377777775555555 509,490 508,876 555555511111113333333,,,,,,,222222200000000000000 507,181 504,791 555555511111111111111,,,,,,,666666600000007777777 503,270 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 66666660000000,,,,,,,555555511111111111111 44444441111111,,,,,,,999999900000000000000 33333337777777,,,,,,,222222244444447777777 35,582 38,614 33333337777777,,,,,,,222222211111112222222 34,908 34,698 33333335555555,,,,,,,555555555555559999999 32,912 44 OOwwnn ffoorreeiiggnn ooffffiicceess 222222299999996666666,,,,,,,000000011111111111111 333333300000004444444,,,,,,,333333311111115555555 333333311111118888888,,,,,,,999999933333339999999 307,982 306,077 333333311111118888888,,,,,,,333333399999998888888 302,534 308,892 333333311111115555555,,,,,,,222222277777770000000 302,916 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111133333334444444,,,,,,,888888888888885555555 111111111111117777777,,,,,,,222222277777772222222 111111111111116666666,,,,,,,444444499999999999999 121,997 119,002 111111111111113333333,,,,,,,888888866666662222222 120,192 116,826 111111111111111111111,,,,,,,999999933333339999999 113,871 66 DDeeppoossiittss 77777778888888,,,,,,,111111188888885555555 66666665555555,,,,,,,222222255555553333333 66666669999999,,,,,,,111111122222225555555 71,929 70,806 66666666666666,,,,,,,999999988888889999999 70,519 70,165 66666663333333,,,,,,,555555599999993333333 62,964 77 OOtthheerr 55555556666666,,,,,,,777777700000000000000 55555552222222,,,,,,,000000011111119999999 44444447777777,,,,,,,333333377777774444444 50,068 48,196 44444446666666,,,,,,,888888877777773333333 49,673 46,661 44444448888888,,,,,,,333333344444446666666 50,907 88 AAllll ootthheerr ffoorreeiiggnneerrss 44444443333333,,,,,,,000000088888885555555 44444448888888,,,,,,,000000055555556666666 44444441111111,,,,,,,666666699999990000000 43,929 45,183 44444443333333,,,,,,,777777722222228888888 49,547 44,375 44444448888888,,,,,,,888888833333339999999 53,571 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss33...... 55555558888888,,,,,,,555555599999994444444 66666667777777,,,,,,,555555500000001111111 66666665555555,,,,,,,333333300000004444444 66666663333333,,,,,,,333333355555554444444 55555553333333,,,,,,,666666644444446666666 11111113333333,,,,,,,000000011111119999999 11111114444444,,,,,,,333333377777775555555 11111115555555,,,,,,,222222244444440000000 11111117777777,,,,,,,555555522222222222222 11111117777777,,,,,,,000000099999998888888 11 Negotiable and readily transferable 33333330000000,,,,,,,999999988888883333333 44444441111111,,,,,,,333333333333333333333 33333337777777,,,,,,,111111122222225555555 33333333333333,,,,,,,111111111111115555555 22222224444444,,,,,,,222222244444440000000 12 Outstanding collections and other 11111114444444,,,,,,,555555599999992222222 11111111111111,,,,,,,777777799999992222222 11111112222222,,,,,,,999999933333339999999 11111112222222,,,,,,,777777711111117777777 11111112222222,,,,,,,333333300000008888888 13 MEMO: Customer liability on 11111112222222,,,,,,,888888899999999999999 11111113333333,,,,,,,666666622222228888888 8888888,,,,,,,999999977777771111111 7777777,,,,,,,888888888888883333333 7777777,,,,,,,555555566666668888888 1144 DDoollllaarr ddeeppoossiittss iinn bbaannkkss aabbrrooaadd,, rreeppoorrtteedd bbyy nnoonnbbaannkkiinngg bbuussiinneessss eenntteerrpprriisseess iinn tthhee UUnniitteedd SSttaatteess ........ 45,767 44,638 39,092 37,741 39,340 37,517 34,604 33,372 33,382 n.a. 1. For banks' claims, data are monthly; for claims of banks' domestic custom- foreign bank, and foreign branches, agencies, or wholly owned subsidiaries of ers, data are quarterly. head office or parent foreign bank. Reporting banks include all types of depository institution, as well as some 3. Assets held by reporting banks for the account of their domestic customers. brokers and dealers. 4. Principally negotiable time certificates of deposit and bankers acceptances. 2. For U.S. banks, includes amounts due from own foreign branches and 5. Includes demand and time deposits and negotiable and nonnegotiable foreign subsidiaries consolidated in Consolidated Report of Condition filed with certificates of deposit denominated in U.S. dollars issued by banks abroad. For bank regulatory agencies. For agencies, branches, and majority-owned subsidiar- description of changes in data reported by nonbanks, see Federal Reserve ies of foreign banks, consists principally of amounts due from head office or parent Bulletin, vol. 65 (July 1979), 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 Sept. Dec. Mar. Junep 1 Total 233,184 238,123 206,903 195,328 195,199 194,494 195,933 By borrower 2 Maturity of one year or less 172,634 178,346 165,985 160,343 162,435 161,450 161,347 3 Foreign public borrowers 26,562 23,916 19,305 17,651 21,108 20,485 20,003 4 All other foreigners 146,071 154,430 146,680 142,692 141,327 140,965 141,344 5 Maturity of more than one year 60,550 59,776 40,918 34,985 32,764 33,044 34,586 6 Foreign public borrowers 35,291 36,014 22,269 17,992 15,922 16,420 15,245 7 All other foreigners 25,259 23,762 18,649 16,993 16,842 16,624 19,341 By area Maturity of one year or less2 8 Europe 55,909 53,913 49,184 51,207 51,868 52,638 54,967 9 Canada 6,282 5,910 5,450 5,682 6,474 6,907 7,936 10 Latin America and Caribbean 57,991 53,003 49,782 47,228 43,429 48,768 49,185 11 Asia 46,224 57,755 53,258 50,023 51,016 43,592 40,830 12 Africa 3,337 3,225 3,040 2,815 2,549 2,491 2,139 13 All other3 2,891 4,541 55,,227722 33,,338888 77,,009999 77,,005544 66,,229900 Maturity of more than one year 14 Europe 4,666 4,121 3,859 3,732 3,882 4,348 6,791 15 Canada 1,922 2,353 3,290 3,706 3,546 3,242 3,178 16 Latin America and Caribbean 47,547 45,816 25,774 19,319 18,311 18,223 16,945 17 Asia 3,613 4,172 5,165 5,613 4,425 4,721 4,988 18 Africa 2,301 2,630 2,374 2,393 2,335 2,191 2,341 19 All other3 501 684 456 222 265 319 343 1. Reporting banks include all kinds of depository institutions besides commer- 2. Maturity is time remaining 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 • November 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 AArreeaa oorr ccoouunnttrryy 11998888 11998899 June Sept. Dec. Mar. June Sept. Dec. Mar. Junep 1 Total 346.3 338.8 321.7 331.5 317.8 325.4 320.8 335.5 341.6 347.4r 354.8 2 G-10 countries and Switzerland 152.7 152.9 139.3 143.6 132.1 129.9 130.1 134.0 137.3 130.2r 135.5 3 Belgium and Luxembourg 9.0 6.3 6.2 6.5 5.9 6.2 6.1 5.8 6.0 5.3 6.2 4 France 10.5 11.7 10.2 11.1 10.4 9.7 10.5 11.1 11.0 9.9 11.8 5 Germany 10.3 10.5 11.2 11.1 10.6 8.8 8.3 9.7 8.3 8.4r 8.7 6 Italy 6.8 7.4 5.4 4.4 5.0 4.0 3.6 4.5 5.6 5.4 8.0 7 Netherlands 2.7 3.1 2.7 3.8 3.0 3.3 3.3 3.0 4.7 4.3 3.3 8 Sweden 1.8 2.0 2.3 2.3 2.2 2.0 2.5 2.1 1.9 2.0 2.0 9 Switzerland 5.4 7.1 6.3 5.6 4.4 3.7 3.3 3.9 3.4 3.2 4.6 10 United Kingdom 66.2 67.2 59.9 62.6 60.8 62.2 59.8 64.9 68.5 64.6r 65.9 11 Canada 5.0 5.4 5.1 5.0 5.9 6.8 8.2 5.9 5.9 6.6 6.7 12 Japan 34.9 32.2 30.1 31.3 23.9 23.2 24.6 23.2 22.2 20.7 18.3 13 Other industrialized countries 21.0 20.7 22.4 23.0 22.6 23.1 21.1 21.7 22.6 21.2 25.4 14 Austria 1.5 1.5 1.5 1.6 1.4 1.4 1.1 1.0 .6 .8 .8 15 Denmark 1.1 1.1 1.1 1.1 1.1 .9 1.2 .9 .9 ..88 11..33 16 Finland 1.1 1.0 .9 .8 .7 1.0 .8 .7 .7 ..88 ..88 17 Greece 1.8 2.5 2.7 2.8 2.7 2.5 2.4 2.3 2.6 2.3 2.8 18 Norway 1.8 1.4 1.4 1.6 1.6 1.5 1.5 1.4 1.4 1.5 1.7 19 Portugal .4 .4 .8 .6 .6 .6 .6 .5 .6 .5 .5 20 Spain 6.2 7.1 7.8 8.4 8.3 9.0 7.0 8.3 8.2 7.6 10.1 21 Turkey 1.5 1.2 1.4 1.6 1.7 1.7 1.9 1.6 1.4 1.2 1.5 22 Other Western Europe 1.3 .7 1.1 .7 .9 .8 .9 1.0 1.6 1.3 1.9 23 South Africa 2.4 2.0 1.9 1.9 1.8 1.8 1.8 1.6 1.9 1.8 1.7 24 Australia 1.8 1.6 1.8 2.0 1.8 1.9 2.0 2.4 2.7 2.3 2.3 25 OPEC2 16.6 17.1 15.3 14.2 12.8 17.1 14.0 15.6 14.6 15.8r 16.2 26 Ecuador 1.7 1.3 1.1 1.1 1.0 .9 .9 .8 .7 .7 .7 27 Venezuela 7.9 7.0 6.0 6.0 5.0 5.1 5.3 5.6 5.4 5.4 5.3 28 Indonesia 1.7 2.0 2.0 2.3 2.7 2.8 2.6 2.8 2.8 S.O1 3.0 29 Middle East countries 3.4 5.0 4.4 3.1 2.5 6.6 3.7 5.0 4.2 5.3 5.9 30 African countries 1.9 1.7 1.8 1.7 1.7 1.6 1.5 1.5 1.5 1.4 1.4 31 Non-OPEC developing countries 85.3 77.5 66.7 67.1 65.4 66.4 65.0 65.0 64.3 70.6r 69.1 Latin America 32 Argentina 9.0 6.3 5.2 5.0 5.0 4.7 4.6 4.5 4.8 5.0 5.1 33 Brazil 22.4 19.0 16.7 15.4 14.4 13.9 11.6 10.5 9.5 10.8 10.6 34 Chile 5.6 4.6 3.7 3.6 3.5 3.6 3.6 3.7 3.6 3.9 4.0 35 Colombia 2.1 1.8 1.7 1.8 1.8 1.7 1.6 1.6 1.7 1.6 1.6 36 Mexico 18.8 17.7 12.6 12.8 13.0 13.7 14.3 16.2 15.5 18.2 16.5 37 Peru .8 .6 .5 .5 .5 .5 .5 .4 .4 .4 .4 38 Other 2.6 2.8 2.3 2.4 2.3 2.2 2.0 1.9 2.1 2.2 2.2 Asia China 39 Peoples Republic of China .3 .3 .2 .2 .2 .4 .6 .4 .3 .3 .3 40 Republic of China (Taiwan) 3.7 4.5 3.6 4.0 3.5 3.6 4.1 4.1 4.1 4.8r 4.9 41 India 2.1 3.1 3.6 3.6 3.3 3.5 3.0 2.8 3.0 3.6 3.8 42 Israel 1.2 .7 .7 .6 .5 .5 .5 .5 .5 .4 .4 43 Korea (South) 6.1 5.9 5.6 6.2 6.2 6.8 6.9 6.5 6.8 6.9 6.9 44 Malaysia 1.6 1.7 1.8 1.8 1.9 2.0 2.1 2.3 2.3 2.5 2.7 45 Philippines 4.5 4.1 3.9 3.9 3.8 3.7 3.7 3.6 3.7 3.6 3.0 46 Thailand 1.1 1.3 1.3 1.5 1.5 1.6 1.7 1.9 1.7 1.7 1.9 47 Other Asia3 .9 1.0 1.1 1.6 1.7 2.1 2.3 2.3 2.4 2.7 3.1 Africa 48 Egypt .4 .4 .5 .4 .4 .4 .4 .4 .4 .3 .5 49 Morocco .9 .9 .9 .9 .8 .8 .7 .7 .7 .7 .7 50 Zaire .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 51 Other Africa3 1.1 1.0 .8 .8 1.0 .8 .8 .8 .7 .7 .6 52 Eastern Europe 3.6 3.5 2.9 2.7 2.3 2.1 2.1 1.8 2.4 2.9 3.0 53 U.S.S.R .7 .7 .4 .4 .2 .3 .4 .4 .9 1.4 1.7 54 Yugoslavia 1.8 1.6 1.4 1.3 1.2 1.0 1.0 .8 .9 .8 .7 55 Other 1.1 1.3 1.1 1.1 .9 .8 .7 .7 .7 .6 .6 56 Offshore banking centers 44.2 36.6 40.3 42.6 42.5 50.1 48.3 52.4 51.9 58.5 56.6 57 Bahamas 11.0 5.5 8.5 8.9 2.8 8.4 6.8 6.7 12.0 14.1 12.1 58 Bermuda .9 1.7 2.5 4.5 4.4 4.4 4.2 7.1 2.2 3.9 5.1 59 Cayman Islands and other British West Indies 12.9 9.0 8.5 9.3 11.5 14.1 14.9 13.8 15.9 17.4 1188..00 60 Netherlands Antilles 1.0 2.3 2.3 2.2 7.9 1.1 1.4 3.5 1.2 1.0 ..88 61 Panama 2.5 1.4 1.4 1.5 1.4 1.5 1.3 1.3 1.3 11..33 11..44 62 Lebanon .1 .1 .1 .1 .1 .1 .1 .1 .1 ..11 ..11 63 Hong Kong 9.6 9.7 10.0 8.7 7.7 11.6 12.4 12.1 12.2 12.2 12.7 64 Singapore 6.1 7.0 7.0 7.5 6.6 8.9 7.2 7.7 7.1 8.5 6.4 65 Other5 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 66 Miscellaneous and unallocated6 22.6 30.3 34.5 38.1 39.8 36.5 40.0 44.7 48.3 48.1 48.7 1. The banking offices covered by these data are the U.S. offices and foreign $150 million equivalent in total assets, the threshold now applicable to all branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks. reporting branches. Offices not covered include (1) U.S. agencies and branches of foreign banks, and 2. 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 by an increase in the reporting threshold for "shell" branches from $50 million to organizations. 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 1992 TTyyppee aanndd aarreeaa oorr ccoouunnttrryy 11998888 11998899 11999900 Dec. Mar. June Sept. Dec. Mar. 1 Total 32,952 38,764 44,988 44,988 41,978 40,652 42,148 41,514 43,499r 2 Payable in dollars 27,335 33,973 39,791 39,791 37,402 36,182 37,442 36,261 38,206r 3 Payable in foreign currencies 5,617 4,791 5,197 5,197 4,576 4,469 4,706 5,253 5,293 By type 4 Financial liabilities 14,507 17,879 20,010 20,010 18,606 18,260 20,350 20,180 21,661r 5 Payable in dollars 10,608 14,035 15,984 15,984 15,266 14,947 16,675 16,187 17,566r 6 Payable in foreign currencies 3,900 3,844 4,026 4,026 3,340 3,313 3,675 3,993 4,095 7 Commercial liabilities 18,445 20,885 24,977 24,977 23,372 22,392 21,798 21,334 21,838 8 Trade payables 6,505 8,070 10,512 10,512 8,789 8,576 8,359 8,185 8,697 9 Advance receipts and other liabilities 11,940 12,815 14,465 14,465 14,583 13,815 13,439 13,149 13,141 10 Payable in dollars 16,727 19,938 23,807 23,807 22,135 21,235 20,767 20,074 20,640 11 Payable in foreign currencies 1,717 947 1,170 1,170 1,236 1,157 1,031 1,260 1,198 By area or country Financial liabilities 12 Europe 9,962 11,660 10,346 10,346 9,559 9,634 11,403 10,750 12,061r 13 Belgium and Luxembourg 289 340 394 394 335 355 397 187 144 14 France 359 258 700 700 632 556 1,747 1,596 2,002 15 Germany 699 464 621 621 561 658 652 658 644 16 Netherlands 880 941 1,081 1,081 1,036 1,026 1,050 1,058 1,026 17 Switzerland 1,033 541 516 516 517 484 468 361 357 18 United Kingdom 6,533 8,818 6,395 6,395 5,810 5,932 6,521 6,260 6,980* 19 Canada 388 610 229 229 278 293 305 268 289 20 Latin America and Caribbean 839 1,357 4,153 4,153 4,255 3,808 3,883 4,308 4,048 21 Bahamas 184 157 371 371 392 375 314 537 3% 22 Bermuda 0 17 0 0 0 12 0 114 114 23 Brazil 0 0 0 0 0 0 6 6 8 24 British West Indies 645 724 3,160 3,160 3,293 2,816 2,961 3,047 2,915 25 Mexico 1 6 5 5 6 6 6 8 8 26 Venezuela 0 0 4 4 4 4 4 4 4 27 Asia 3,312 4,151 4,872 4,872 4,510 4,515 4,755 4,7% 5,168 28 Japan 2,563 3,299 3,637 3,637 3,432 3,339 3,605 3,557 3,906 29 Middle East oil-exporting countries2 3 2 5 5 1 4 19 13 13 30 Africa 2 2 2 2 2 9 3 6 7 31 Oil-exporting countries 0 0 0 0 0 7 2 4 6 32 Allother4 4 100 409 409 2 2 1 52 88 Commercial liabilities 33 Europe 7,319 9,071 10,310 10,310 9,772 8,703 8,240 7,879 7,529 34 Belgium and Luxembourg 158 175 275 275 261 249 229 247 256 35 France 455 877 1,218 1,218 1,215 1,193 1,003 884 667 36 Germany 1,699 1,392 1,270 1,270 1,383 1,040 916 945 872 37 Netherlands 587 710 844 844 729 744 768 704 558 38 Switzerland 417 693 775 775 661 580 492 473 481 39 United Kingdom 2,079 2,620 2,792 2,792 2,817 2,336 2,250 2,304 2,467 40 Canada 1,217 1,124 1,261 1,261 1,251 1,208 1,018 992 1,090 41 Latin America and Caribbean 1,090 1,224 1,672 1,672 1,602 1,622 1,518 1,357 1,717 42 Bahamas 49 41 12 12 14 5 14 3 21 43 Bermuda 286 308 538 538 494 504 450 310 493 44 Brazil 95 100 145 145 216 180 211 219 230 45 British West Indies 34 27 30 30 35 49 46 107 108 46 Mexico 217 323 475 475 343 358 291 303 375 47 Venezuela 114 164 130 130 129 119 102 94 171 48 Asia 6,915 7,550 9,483 9,483 8,622 8,827 8,918 9,274 9,839 49 Japan 3,094 2,914 3,651 3,651 3,423 3,411 3,363 3,648 3,463 50 Middle Eastern oil-exporting countries ' 1,385 1,632 2,016 2,016 1,566 1,700 1,809 1,497 1,606 51 Africa 576 886 844 844 656 596 836 762 646 52 Oil-exporting countries3 202 339 422 422 226 226 357 358 253 53 Other4 1,328 1,030 1,406 1,406 1,469 1,436 1,268 1,070 1,017 1. For a description of the changes in the international statistics tables, see 4. Includes nonmonetary international and regional organizations. Federal Reserve Bulletin, vol. 65, (July 1979), p. 550. 5. Revisions include a reclassification of transactions, which also affects the 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and totals for Asia and the grand totals. United Arab Emirates (Trucial States). 3. Comprises Algeria, Gabon, Libya, and Nigeria. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 International Statistics • November 1992 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1990 1991 1992 Type, and area or country 11998888 11998899 11999900 Dec. Mar. June Sept. Dec. Mar. 1 Total 33,805 33,173 35,240 35,240 35,447 37,045 38,126 41,481 41,475" 2 Payable in dollars 31,425 30,773 32,652 32,652 33,148 34,958 35,788 39,000 38,853" 3 Payable in foreign currencies 2,381 2,400 2,589 2,589 2,299 2,087 2,338 2,481 2,622" By type 4 Financial claims 21,640 19,297 19,841 19,841 19,694 20,904 22,433 24,614 25,029" 5 Deposits 15,643 12,353 13,697 13,697 13,044 12,549 16,167 17,134 16,797" 6 Payable in dollars 14,544 11,364 12,552 12,552 12,012 11,758 15,147 16,283 15,615" 7 Payable in foreign currencies 1,099 989 1,145 1,145 1,032 790 1,020 851 1,182 8 Other financial claims 5,997 6,944 6,144 6,144 6,650 8,355 6,266 7,480 8,232" 9 Payable in dollars 5,220 6,190 5,247 5,247 5,948 7,656 5,568 6,660 7,521" 10 Payable in foreign currencies 777 754 8% 8% 702 700 698 820 711" 11 Commercial claims 12,166 13,876 15,400 15,400 15,753 16,141 15,693 16,867 16,446 12 Trade receivables 11,091 12,253 13,544 13,544 13,706 13,979 13,270 14,129 13,821 13 Advance payments and other claims 1,075 1,624 1,856 1,856 2,047 2,163 2,423 2,738 2,625 14 Payable in dollars 11,660 13,219 14,852 14,852 15,187 15,544 15,073 16,057 15,717 15 Payable in foreign currencies 505 657 548 548 566 597 620 810 729 By area or country Financial claims 16 Europe 10,278 8,463 9,601 9,601 10,640 11,875 13,077 13,429 14,083" 17 Belgium and Luxembourg 18 28 76 76 86 74 76 13 12 18 France 203 153 371 371 208 271 255 312 277" 19 Germany 120 152 367 367 312 298 434 342 290 20 Netherlands 348 238 265 265 380 429 420 385 727 21 Switzerland 217 153 357 357 422 433 580 591 682 22 United Kingdom 9,039 7,496 7,921 7,921 9,016 10,222 10,943 11,150 11,507" 23 Canada 2,325 1,904 2,934 2,934 1,889 2,017 2,113 2,560 2,744" 24 Latin America and Caribbean 8,160 8,020 6,201 6,201 6,266 5,926 6,269 7,652 6,836" 25 Bahamas 1,846 1,890 1,090 1,090 825 457 652 758 400 26 Bermuda 19 7 3 3 6 4 19 8 12 27 Brazil 47 224 68 68 68 127 124 115 191" 28 British West Indies 5,763 5,486 4,635 4,635 4,937 4,957 5,106 6,380 5,728 29 Mexico 151 94 177 177 179 161 171 179 318" 30 Venezuela 21 20 25 25 28 29 32 40 34 31 Asia 623 590 860 860 568 747 619 605 1,009 3 3 2 3 J M ap id a d n l e East oil-exporting countries2 .. 35 5 4 213 8 523 8 52 8 3 24 1 6 1 39 4 8 277 3 343 5 423 3 34 Africa 106 140 37 37 62 64 61 57 60 35 Oil-exporting countries3 10 12 0 0 3 1 1 1 0 36 All other4 148 180 207 207 269 275 294 311 297 Commercial claims 3 4 4 3 3 4 4 8 0 1 7 9 2 3 Eu B G N F S U r w e r o e e n l a r p t i i g h n t m t e i z e u e c e d a r e m r n l l a K y a n a n i d n n d s d g d L o u m x embourg 5 1 , , 1 6 6 3 2 3 1 8 7 6 1 2 4 8 1 2 9 2 4 4 9 6 1 , , 2 2 5 9 6 4 3 0 4 7 7 6 9 1 9 2 5 9 4 6 3 7 1 1 , , , 0 2 2 7 8 5 3 3 1 0 5 4 0 7 8 2 1 5 0 6 4 7 1 1 , , , 0 2 8 2 7 5 3 3 1 0 4 0 5 7 8 2 6 0 1 5 4 7 1 1 , , , 0 2 6 2 6 8 3 5 2 7 0 3 7 2 1 6 3 4 8 3 4 7 1 1 , , , 4 2 9 7 2 4 8 5 2 5 0 0 1 % 6 0 6 7 2 6 6 1 1 , , , 8 8 6 2 8 3 1 7 4 5 5 0 3 9 8 1 8 6 6 0 0 2 7 1 , , , 0 8 9 6 5 2 1 7 1 3 3 8 3 9 2 7 1 7 7 8 2 7 1 1 , , , 5 8 9 6 5 3 1 4 6 2 4 4 1 8 5 7 7 5 7 5 1 44 Canada 983 1,091 1,073 1,073 1,212 1,240 1,231 1,141 1,167 45 Latin America and Caribbean 2,241 2,184 2,371 2,371 2,331 2,429 2,489 2,561 2,536" 46 Bahamas 36 58 14 14 15 16 8 11 11 47 Bermuda 230 323 246 246 231 245 255 263 264 48 Brazil 299 297 324 324 326 309 384 397 343 49 British West Indies 22 36 40 40 49 43 37 41 45 50 Mexico 461 508 661 661 653 710 740 827 889 51 Venezuela 227 147 192 192 181 195 196 201 204 52 Asia 2,993 3,570 4,064 4,064 4,292 4,137 4,210 4,468 4,326 53 Japan 946 1,199 1,399 1,399 1,757 1,587 1,742 1,788 1,770 54 Middle Eastern oil-exporting countries' 453 518 460 460 497 500 495 620 635 5 5 5 6 Af O ri i c l a -e xporting countries3 4 1 3 2 5 2 4 1 2 0 9 8 48 6 8 7 48 6 8 7 3 6 9 8 4 42 6 8 3 43 8 1 0 41 9 7 5 41 7 7 5 57 Other4 333 393 366 366 473 452 454 463 433" 1. For a description of the changes in the international statistics tables, see 3. Comprises Algeria, Gabon, Libya, and Nigeria. Federal Reserve Bulletin, vol. 65, (July 1979), 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 Transaction and area or country 1990 1991 J J a u n ly - Jan. Feb. Mar. Apr. May Juner July" U.S. corporate securities STOCKS 1 Foreign purchases 173,293 211,204 136,214 23,302 21,429 18,884 17,536 18,664 17,963 18,436 2 Foreign sales 188,419 200,116 140,388 25,900 21,193 19,457 18,034 18,602 18,505 18,697 3 Net purchases or sales (-) -15,126 11,088 -4,174 -2,598 236 -573 -498 62 -542 -261 4 Foreign countries -15,197 10,520 -4,319 -2,479 237 -595 -531 27 -700 -278 5 Europe -8,479 50 -3,369 -1,318 -105 -95 -730 278 -458 -941 6 France -1,234 9 -76 -28 -224 -27 -217 -121 545 -4 7 Germany -367 -63 -90 -160 30 -45 -48 149 -2 -14 8 Netherlands -397 -227 -280 44 -114 -17 -38 76 -217 -14 9 Switzerland -2,866 -131 439 -286 304 261 90 122 -4 -48 10 United Kingdom -2,980 -354 -3,160 -882 -304 -236 -334 -11 -666 -727 11 Canada 886 3,845 1,701 260 235 410 412 230 72 82 12 Latin America and Caribbean -1,330 2,177 763 1,025 359 -322 45 43 -363 -24 13 Middle East1 -2,435 -134 -5 -271 101 121 -95 85 51 3 14 Other Asia -3,477 4,255 -3,710 -2,211 -396 -886 -158 -557 142 356 15 Japan -2,891 1,179 -3,815 -2,194 -615 -496 -318 -401 36 173 16 Africa -63 153 43 13 15 4 -1 20 -1 -7 17 Other countries -298 174 258 23 28 173 -4 -72 -143 253 18 Nonmonetary international and regional organizations 71 568 145 -119 -1 22 33 35 158 17 BONDS2 19 Foreign purchases 118,764 152,821 120,950 16,498 18,045 17,338 16,722 17,539 16,691 18,117 20 Foreign sales 102,047 125,398 97,408 14,367 14,731 14,321 11,622 13,222r 12,407 16,738 21 Net purchases or sales (-) 16,717 27,422 23,542 2,131 3,314 3,017 5,100 4,317r 4,284 1,379 22 Foreign countries 17,187 27,553 23,331 2,098 3,308 2,927 4,905 4,388r 4,205 1,500 23 Europe 10,079 13,116 10,827 1,390 2,390 1,201 2,047 1,9201 1,420 459 24 France 373 847 856 -2 58 -34 363 -45 364 152 25 Germany -377 1,577 1,426 594 277 122 391 67 11 -36 26 Netherlands 172 482 136 -113 12 -15 -122 123 64 187 27 Switzerland 284 656 -163 -67 252 124 -359 -40 -53 -20 28 United Kingdom 10,383 8,935 8,140 905 1,801 758 1,543 l,496r 847 790 29 Canada 1,906 1,623 -153 -153 97 -72 87 -68 -111 67 30 Latin America and Caribbean 4,291 2,468 5,769 506 768 1,456 612 1,103 720 604 31 Middle East1 76 2,185 1,053 -75 -71 257 258 293 174 217 32 Other Asia 1,083 8,224 5,795 339 101 121 1,818 1,169 2,005 242 33 Japan 727 5,732 861 257 -121 -316 687 324 740 -710 34 Africa 96 52 112 28 15 28 19 6 -6 22 35 Other countries -344 -116 -72 63 8 -64 64 -35 3 -111 36 Nonmonetary international and regional organizations -471 -131 211 33 6 90 195 -71 79 -121 Foreign securities 37 Stocks, net purchases or sales (-) -9,205 -31,909 -14,592 -2,551 -2,303 -2,944 -2,592 -910r -391 -2,901 38 Foreign purchases 122,641 120,598 88,061 12,509 10,647 12,824 10,986 13,865r 13,808 13,422 39 Foreign sales 131,846 152,507 102,653 15,060 12,950 15,768 13,578 14,775r 14,199 16,323 40 Bonds, net purchases or sales (-) -22,412 -15,377 -11,654 -1,316 418 -484 -1,429 -2,699r -1,805 -4,339 41 Foreign purchases 314,645 325,133 245,538 35,543 33,050 32,287 30,294 32,940r 39,248 42,176 42 Foreign sales 337,057 340,510 257,192 36,859 32,632 32,771 31,723 35,639r 41,053 46,515 43 Net purchases or sales (—), of stocks and bonds -31,617 -47,286 -26,246 -3,867 -1,885 -3,428 -4,021 -3,609r -2,196 -7,240 44 Foreign countries -28,943 -47,202 -29,429 -4,118 -2,050 -3,762 -5,176 —3,635r -2,580 -8,108 45 Europe -8,443 -34,421 -18,464 -4,507 -2,267 -730 -3,345 -192r -2,301 -5,122 46 Canada -7,502 -7,578 -5,020 -926 1,304 -653 -953 -713r -888 -2,191 47 Latin America and Caribbean -8,854 811 -1,379 -818 708 -479 -845 -1,278 -302 1,635 48 -3,828 -7,350 -3,987 2,183 -1,513 -1,580 115 -l,132r 373 -2,433 49 Africa -137 -9 -83 -5 -10 1 9 -99 7 14 50 Other countries -180 1,345 -4% -45 -272 -321 -157 -221 531 -11 51 Nonmonetary international and regional organizations -2,673 -84 3,183 251 165 334 1,155 26 384 868 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. In a July 1989 merger, the former stockholders of a U.S. company received government agencies and corporations. Also includes issues of new debt securi- $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 • November 1992 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars Country or area 1991 J J a u n ly .- Jan. Feb. Mar. Apr. May June July1 Transactions, net purchases or sales (-) during period1 1 Estimated total2 18,927 18,359 16,689 10,621 3,175 -8,820 6,558 -7,924 14,448R -1,369 2 Foreign countries2 18,764 18,181 14,570 9,864 3,558 -9,451 7,579 -6,945 ll,758r -1,793 3 Europe2 18,455 8,078 5,227 5,324 7,326 -4,903 3,207 -7,302 3,828r -2,253 4 Belgium and Luxembourg 10 523 1,408 559 296 -91 21 289 -49 383 5 Germany2 5,880 -4,725 1,544 805 287 -313 441 329 824r -829 6 Netherlands 1,077 -3,735 -3,875 -1,936 -967 245 -219 -338 227 -887 7 Sweden 1,152 -663 802 180 300 102 -123 -3 372 -26 8 Switzerland2 112 1,007 -1,612 142 -388 -411 10 -579 3 -389 9 United Kingdom -1,260 5,656 5,849 2,649 6,234 -1,844 2,820 -5,867 1,664 193 10 Other Western Europe 11,463 10,001 698 2,925 1,524 -2,601 257 -1,099 587* -895 11 Eastern Europe 13 13 413 0 40 10 0 -34 200 197 12 Canada -4,627 -2,720 4,362 962 -1,549 -430 185 2,627 47 2,520 13 Latin America and Caribbean 14,734 9,056 -1,485 -2,920 -1,191 -554 2,780 -320 3,589 -2,869 14 Venezuela 33 10 255 266 169 73 -124 -196 -149 216 15 Other Latin America and Caribbean 3,943 2,834 1,548 -357 -444 -108 3,723 -2,472 1,795 -589 16 Netherlands Antilles 10,757 6,213 -3,288 -2,829 -916 -519 -819 2,348 1,943 -2,496 17 Asia -10,952 3,376 8,826 7,675 -430 -3,322 1,363 -2,406 4,129* 1,817 18 Japan -14,785 -4,034 226 -398 -1,933 -3,044 657 1,085 1,638 2,221 19 Africa 313 689 906 207 100 125 193 40 92 149 20 Other 842 -298 -3,266 -1,384 -698 -367 -149 416 73 -1,157 21 Nonmonetary international and regional organizations 163 178 2,119 757 -383 631 -1,021 -979 2,690 424 22 International 287 -358 2,047 197 -228 801 -762 -747 2,421 365 23 Latin American regional -2 -72 122 -58 51 0 74 -4 127 -68 MEMO 24 Foreign countries2 18,764 18,181 14,570 9,864 3,558 -9,451 7,579 -6,945 11,758* -1,793 25 Official institutions 23,218 1,190 9,025 8,687 -193 -3,136 1,712 -2,685 5,294* -654 26 Other foreign2 -4,453 16,990 5,545 1,177 3,751 -6,315 5,867 -4,260 6,464 -1,139 OU-exportine countries 27 Middle East3 -387 -6,822 1,833 623 1,679 233 556 -3,061 947 856 28 Africa 0 239 7 48 0 0 15 0 -56 0 1. Estimated official and private transactions in marketable U.S. Treasury 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and securities having an original maturity of more than one year. Data are based on United Arab Emirates (Trucial States). monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and 4. Comprises Algeria, Gabon, Libya, and Nigeria. notes held by official institutions of foreign countries. 2. Includes U.S. Treasury notes, denominated in foreign currencies, publicly issued to private foreign residents. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Interest and Exchange Rates A67 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS1 Percent per year Rate on Sept. 30, 1992 Rate on Sept. 30, 1992 Rate on Sept. 30, 1992 Country Country Country Percent e M ffe o c n t t iv h e Percent e M ffe o c n t t iv h e e M ffe o c n t t iv h e Austria.. 8.0 Dec. 1991 Germany... 8.25 Sept. 1992 Norway 10.50 July 1990 Belgium . 8.0 Sept. 1991 Italy 15.00 Sept. 1992 Switzerland 6.0 Sept. 1992 Canada.. 5.69 Sept. 1992 Japan 3.25 July 1992 United Kingdom 12.0 Sept. 1992 Denmark 9.5 Dec. 1991 Netherlands 8.0 Sept. 1992 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 3.27 FOREIGN SHORT-TERM INTEREST RATES1 Averages of daily figures, percent per year 1992 TTyyppee oorr ccoouunnttrryy 11998899 11999900 11999911 Mar. Apr. May June July Aug/ Sept. 1 Eurodollars 9.16 8.16 5.86 4.26 4.05 3.84 3.87 3.40 3.33 3.15 2 United Kingdom 13.87 14.73 11.47 10.58 10.56 10.00 9.94 10.10 10.27 9.86 3 Canada 12.20 13.00 9.07 7.63 7.10 6.60 6.03 5.58 5.15 5.33 4 Germany 7.04 8.41 9.15 9.59 9.63 9.70 9.66 9.69 9.79 9.37 5 Switzerland 6.83 8.71 8.01 8.16 8.48 8.77 9.04 8.67 8.09 7.20 6 Netherlands 7.28 8.57 9.19 9.52 9.42 9.43 9.45 9.50 9.73 9.23 7 France 9.27 10.20 9.49 9.99 9.92 9.83 9.98 10.11 10.27 10.51 8 Italy 12.44 12.11 12.04 12.25 12.38 12.39 13.38 15.54 15.27 17.54 9 Belgium 8.65 9.70 9.30 9.56 9.50 9.51 9.50 9.54 9.71 9.44 10 Japan 5.39 7.75 7.33 4.95 4.72 4.72 4.60 4.32 3.87 3.89 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 • November 1992 3.28 FOREIGN EXCHANGE RATES1 Currency units per dollar, except as noted 1992 CCoouunnttrryy//ccuurrrreennccyy uunniitt 11998899 11999900 11999911 Apr. May June July Aug. Sept. 1 Australia/dollar2 79.186 78.069 77.872 76.241 75.587 75.561 74.507 72.479 72.255 2 Austria/schilling 13.236 11.331 11.686 11.620 11.422 11.068 10.500 10.199 10.214 3 Belgium/franc 39.409 33.424 34.195 33.927 33.386 32.362 30.717 29.824 29.917 4 Canada/dollar 1.1842 1.1668 1.1460 1.1874 1.1991 1.1960 1.1924 1.1907 1.2225 5 China, P.R./yuan 3.7673 4.7921 5.3337 5.5098 5.5182 5.4893 5.4564 5.4417 5.5048 6 Denmark/krone 7.3210 6.1899 6.4038 6.3906 6.2678 6.0573 5.7409 5.5851 5.6203 7 Finland/markka 4.2963 3.8300 4.0521 4.5023 4.4075 4.2846 4.0803 3.9773 4.4764 8 France/franc 6.3802 5.4467 5.6468 5.5773 5.4548 5.2940 5.0321 4.9119 4.9378 9 Germany/deutsche mark 1.8808 1.6166 1.6610 1.6493 1.6225 1.5726 1.4914 1.4475 1.4514 10 Greece/drachma 162.60 158.59 182.63 192.83 192.09 190.69 182.89 179.12 182.70 11 Hong Kong/dollar 7.8008 7.7899 7.7712 7.7404 7.7421 7.7343 7.7341 7.7318 7.7298 12 India/rupee 16.213 17.492 22.712 28.8% 28.542 28.519 28.564 28.464 28.476 13 Ireland/pound2 141.80 165.76 161.39 161.65 164.62 169.80 178.76 183.26 181.90 14 Italy/lira 1,372.28 1,198.27 1,241.28 1,241.55 1,220.95 1,189.52 1,129.83 1,100.00 1,176.21 15 Japan/yen 138.07 145.00 134.59 133.54 130.77 126.84 125.88 126.23 122.60 16 Malaysia/ringgit 2.7079 2.7057 2.7503 2.5521 2.5223 2.5187 2.4999 2.4977 2.5029 17 Netherlands/guilder 2.1219 1.8215 1.8720 1.8568 1.8268 1.7719 1.6819 1.6322 1.6348 18 New Zealand/dollar2 59.793 59.619 57.832 54.138 53.514 54.201 54.609 54.057 54.112 19 Norway/krone 6.9131 6.2541 6.4912 6.4606 6.3311 6.1493 5.8581 5.7120 5.8116 20 Portugal/escudo 157.53 142.70 144.77 141.09 135.23 130.79 126.24 124.98 127.86 21 Singapore/dollar 1.9511 1.8134 1.7283 1.6567 1.6408 1.6240 1.6142 1.6077 1.5988 22 South Africa/rand 2.6214 2.5885 2.7633 2.8783 2.8483 2.8077 2.7577 2.7629 2.8037 23 South Korea/won 674.29 710.64 736.73 782.55 786.83 793.60 789.93 792.56 788.76 24 Spain/peseta 118.44 101.96 104.01 103.90 101.47 99.02 94.88 93.05 98.19 25 Sri Lanka/rupee 35.947 40.078 41.200 43.231 43.445 43.941 44.014 44.050 44.159 26 Sweden/krona 6.4559 5.9231 6.0521 5.9667 5.8462 5.6792 5.4084 5.2745 5.3685 27 Switzerland/franc 1.6369 1.3901 1.4356 1.5194 1.4907 1.4250 1.3347 1.2966 1.2780 28 Taiwan/dollar 26.407 26.918 26.759 25.308 25.016 24.770 24.783 25.120 25.227 29 Thailand/baht 25.725 25.609 25.528 25.644 25.550 25.400 25.293 25.265 25.209 30 United Kingdom/pound 163.82 178.41 176.74 175.66 180.95 185.51 191.77 194.34 184.65 MEMO 31 United States/dollar3 98.60 89.09 89.84 89.84 88.30 85.91 82.57 80.97 81.98 1. Averages of certified noon buying rates in New York for cable transfers. currencies of ten industrial countries. The weight for each of the ten countries is Data in this table also appear in the Board's G.5 (405) monthly statistical release. the 1972-76 average world trade of that country divided by the average world 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 September 30,1991 February 1992 A70 December 31, 1991 May 1992 A70 March 31, 1992 August 1992 A70 June 30, 1992 November 1992 A70 Terms of lending at commercial banks November 1991 September 1992 A70 February 1992 September 1992 A74 May 1992 September 1992 A78 August 1992 November 1992 A76 Assets and liabilities of U.S. branches and agencies of foreign banks September 30, 1991 February 1992 A80 December 31, 1991 May 1992 A76 March 31, 1992 September 1992 A82 June 30, 1992 November 1992 A80 Pro forma balance sheet and income statements for priced service operations June 30, 1991 November 1991 A80 September 30,1991 January 1992 A70 March 30, 1992 August 1992 A80 June 30, 1992 October 1992 A70 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 Special tables follow. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • November 1992 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities1 Consolidated Report of Condition, June 30, 1992 Millions of dollars, except as noted Banks with foreign offices2 Bank o s f f w ic i e t s h o d n o ly m estic IItteemm Total Total Foreign Domestic Over 100 Under 100 1 Total assets4 3,418,061 1,903,784 441,512 1,553,423 1,158,462 355,815 2 Cash and balances due from depository institutions 275,114 189,672 84,398 105,274 64,652 20.789 3 Cash items in process of collection, unposted debits, and currency and coin 81,086 1,982 79,104 34,873 4 4 Cash items in process of collection and unposted debits I n.a. n.a. 63,326 23,476 I 5 Currency and coin I n.a. n.a. 15,778 11,397 1 6 Balances due from depository institutions in the United States n.a. 28,859 18,779 10,080 17,440 n.a. 7 8 B B a a l l a a n n c c e e s s d d u u e e f f r r o o m m b F a e n d k er s a i l n R fo e r se e r ig v n e c B o a u n n k tr s ies and foreign central banks 1 6 1 8 0 , , 7 9 6 6 1 6 63,4 1 8 4 9 8 1 5 0 , , 2 8 7 1 2 8 1 2 0 , , 0 2 5 8 9 0 •I 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. 7,060 14,042 88,,330011 10 Total securities, loans and lease financing receivables, net 2,842,320 1,485,675 n.a. n.a. 1,036,010 320,636 11 Total securities, book value 727,033 302,008 29,843 272,165 303,957 121,068 12 U.S. Treasury securities and U.S. government agency and corporation obligations 562,921 224,270 5,737 218,533 224411,,335555 9977,,229966 13 U.S. Treasury securities n.a. 83,625 4,286 79,340 101,420 n.a. 14 U.S. government agency and corporation obligations n.a. 140,645 1,451 139,193 139,935 n.a. 15 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 155,808 77,049 1,128 75,921 58,295 2200,,446633 16 All other n.a. 63,596 323 63,272 81,640 n.a. 17 Securities issued by states and political subdivisions in the United States 70,788 21,368 634 20,733 33,873 15,548 18 Other domestic debt securities n.a. 27,863 840 27,023 23,345 n.a. 19 All holdings of private certificates of participation in pools of residential mortgages 3,313 1,803 3 1,800 1,356 115544 20 All other domestic debt securities 54,718 26,060 837 25,223 21,990 6,668 21 Foreign debt securities n.a. 22,584 21,377 1,207 394 n.a. 22 Equity securities 12,315 5,924 1,255 4,669 4,989 1,402 23 Marketable 6,280 2,267 292 1,975 2,990 1,023 24 Investments in mutual funds 3,973 1,182 25 1,157 1,881 910 25 Other 2,386 1,091 268 823 1,146 149 26 LESS: Net unrealized loss 79 6 1 5 37 36 27 Other equity securities 6,036 3,657 962 2,695 1,999 380 28 Federal funds sold and securities purchased under agreements to resell 148,168 78,509 1,068 77,441 53,287 16,372 29 Federal funds sold 126,264 61,612 n.a. n.a. 48,456 16,195 30 Securities purchased under agreements to resell 21,905 16,897 n.a. n.a. 4,831 177 31 Total loans and lease financing receivables, gross 2,031,939 1,145,525 209,443 936,082 698,507 187,907 32 LESS: Unearned income on loans 9,671 3,697 1,234 2,463 4,494 1,480 33 Total loans and leases (net of unearned income) 2,022,267 1,141,827 208,209 933,618 694,013 186,427 34 LESS: Allowance for loan and lease losses 54,857 36,379 n.a. n.a. 15,247 3,231 35 LESS: Allocated transfer risk reserves 291 291 n.a. n.a. 0 0 36 EQUALS: Total loans and leases, net 1,967,119 1,105,158 n.a. n.a. 678,766 183,1% Total loans, gross, by category 37 Loans secured by real estate 853,629 402,985 23,739 379,246 350,104 110000,,554400 38 Construction and land development J I 54,976 29,436 5,999 39 Farmland T T T 2,162 6,948 10,427 40 One-to-four-family residential properties I I 1 199,609 186,606 55,306 41 Revolving, open-end loans, extended under lines of credit n.a. n.a. n.a. 38,218 30,446 3,103 42 All other loans 1 1 1 161,391 156,160 52,203 4 4 3 4 N M o u n lt f i a f r a m mi l n y o n (f r i e v s e i d o e r n t m ia o l r p e) r o r p es e i r d t e ie n s t ial properties •1 •1 T 1 1 1 10 1 , , 5 9 4 5 7 3 11 1 5 1 , , 1 9 8 2 7 7 2 2 6 , , 0 7 7 2 9 9 45 Loans to depository institutions 43,484 32,633 15,851 16,782 10,718 133 46 Commercial banks in the United States n.a. 13,269 826 12,442 10,078 n.a. 47 Other depository institutions in the United States n.a. 778 14 764 411 n.a. 48 Banks in foreign countries n.a. 18,587 15,011 3,576 229 n.a. 49 Loans to finance agricultural production and other loans to farmers 35,870 5,521 291 5,230 10,818 19,530 50 Commercial and industrial loans 543,235 382,179 98,055 284,124 128,711 32,345 51 U.S. addressees (domicile) n.a. 304,852 23,275 281,576 128,189 n.a. 52 Non-U.S. addressees (domicile) n.a. 77,328 74,780 2,548 522 n.a. 53 Acceptances of other banks 1,688 1,188 739 449 305 195 54 U.S. banks n.a. 460 82 379 n.a. n.a. 55 Foreign banks n.a. 727 658 70 n.a. n.a. 56 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 375,614 171,283 19,874 151,408 172,190 32,141 57 Credit cards and related plans 129,398 65,300 n.a. n.a. 62,333 1,764 58 Other (includes single payment and installment) 246,216 105,982 n.a. n.a. 109,857 30,377 59 Obligations (other than securities) of states and political subdivisions in the United States (includes nonrated industrial development obligations) 26,958 15,005 194 14,811 10,683 1,270 1,928 1,264 70 1,194 612 51 25,030 13,741 124 13,617 10,070 1,218 116,668 106,281 46,496 59,786 9,077 1,310 63 Loans to foreign governments and official institutions n.a. 24,544 23,506 1,038 78 n.a. 64 Other loans n.a. 81,737 22,990 58,747 8,999 n.a. 65 Loans for purchasing and carrying securities n.a. n.a. n.a. 14,765 2,100 n.a. 66 All other loans n.a. n.a. n.a. 43,982 6,899 n.a. 67 Lease financing receivables 34,794 28,448 4,203 24,245 5,902 444 68 Assets held in trading accounts 81,728 79,853 48.231 31,508 1,669 206 69 Premises and fixed assets (including capitalized leases) 52,727 28,631 I n.a. 18,242 5,855 70 Other real estate owned 28,486 17,943 T n.a. 8,581 1,962 71 Investments in unconsolidated subsidiaries and associated companies 3,190 2,776 1 n.a. 343 71 72 Customers' liability on acceptances outstanding 15,381 15,069 n.a. n.a. 298 13 73 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs n.a. n.a. 1 57,478 n.a. n.a. 7 7 4 5 I O n t t h a e n r g i a b s l s e e a ts s sets 1 1 0 4 4 , , 2 8 3 7 5 9 7 8 5 , , 6 5 0 5 5 8 •1 n n. . a a . . 2 5 3 , , 2 45 1 8 0 5,8 4 6 2 3 0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A71 4.20—Continued Banks with foreign offices2 Bank o s f f w ic i e t s h o d n o ly m estic Total Total Foreign Domestic Over 100 Under 100 76 Total liabilities, limited-life preferred stock, and equity capital 3,418,061 1,903,784 n. a. n.a. 1,158,462 77 Total liabilities3 3,171,105 1,783,126 441,511 1,432,767 1,065,450 78 Limited-life preferred stock 9 0 n.a. n.a. 7 79 Total deposits 2,639,144 1,362,840 303,510 1,059,331 961,470 8 8 0 1 I U n . d S i . v i g d o u v a e l r s n , m pa e r n t t n erships, and corporations i 187 i ,1 37 977 3 , , 7 9 5 0 7 5 897 1 , , 3 7 1 2 0 3 82 States and political subdivisions in the United States 31,595 43,151 83 Commercial banks in the United States n.a. n.a. n.a. 23,366 8,398 84 Other depository institutions in the United States 3,401 4,084 8 8 5 6 F B o a r n e k ig s n in g o fo v r e e r i n g m n e c n o t u s n a tr n i d es official institutions i 22 1 , 097 20 < ,9 48 7 1 , , 1 1 6 4 7 9 1 4 4 3 8 87 Certified and official checks 20,782 12,180 1,189 10,991 6,613 88 AU other6 n. a. n.a. 94,236 n.a. n.a. 89 Total transaction accounts 353,116 270,093 90 Individuals, partnerships, and corporations 297,1% 238,542 91 U.S. government 2,098 1,445 92 States and political subdivisions in the United States 11,387 15,773 93 Commercial banks in the United States 21,168 6,293 94 Other depository institutions in the United States 2,671 1,290 95 Banks in foreign countries 6,753 126 96 Foreign governments and official institutions 851 10 97 Certified and official checks 10,991 6,613 98 All other n.a. n.a. 99 Demand deposits (included in total transaction accounts) 258,003 153,190 100 Individuals, partnerships, and corporations 205,733 131,314 101 U.S. government 2,059 1,299 102 States and political subdivisions in the United States 7,780 6,286 103 Commercial banks in the United States 21,168 6.270 104 Other depository institutions in the United States n.a. n. a. n.a. 2,670 1.271 105 Banks in foreign countries 6,751 126 106 Foreign governments and official institutions 850 10 107 Certified and official checks 10,991 6,613 108 All other n.a. n.a. 109 Total nontransaction accounts 706,215 691,377 110 Individuals, partnerships, and corporations 680,561 658,768 111 U.S. government 1,807 278 112 States and political subdivisions in the United States 20,208 27,378 113 Commercial banks in the United States 2,198 2,105 114 U.S. branches and agencies of foreign banks 154 129 115 Other commercial banks in the United States 2,044 1,976 116 Other depository institutions in the United States 730 2,793 117 Banks in foreign countries 413 22 118 Foreign branches of other U.S. banks 4 8 119 Other banks in foreign countries 409 15 120 Foreign governments and official institutions 299 33 121 All other n.a. n.a. 122 Federal funds purchased and securities sold under agreements to repurchase — 228,537 166,970 472 166,498 58,355 123 Federal funds purchased 146,803 111,895 n.a. n.a. 33,522 124 Securities sold under agreements to repurchase 81,734 55,075 n. a. n.a. 24,833 125 Demand notes issued to the U.S. Treasury n.a. n.a. n.a. 27,231 4,590 126 Other borrowed money 131,638 107,106 42,962 64,144 23,469 127 Banks liability on acceptances executed and outstanding 15,448 15,137 3,513 11,624 298 128 Notes and debentures subordinated to deposits 27,370 25,685 n.a. n.a. 1,595 129 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs n.a. n.a. n.a. 33,674 n.a. 130 All other liabilities 96,756 78,156 n a. n.a. 15,673 131 Total equity capital7 246,946 120,657 n a. n.a. 93,005 MEMO 132 Holdings of commercial paper included in total loans, gross 1,133 447 686 1,067 133 Total individual retirement accounts (IRA) and Keogh plan accounts 65,074 65,054 134 Total brokered deposits 34,602 15,584 135 Total brokered retail deposits 23,570 13,238 136 Issued in denominations of $100,000 or less 911 2,323 137 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 22,659 10,915 138 Money market deposit accounts (savings deposits; MMDAs) 232,519 167,115 139 Other savings deposits (excluding MMDAs) 115,729 116,129 140 Total time deposits of less than $100,000 225,266 314 141 Time certificates of deposit of $100,000 or more 111,920 90,187 142 Open-account time deposits of $100,000 or more 20,782 3,589 143 All negotiable order of withdrawal (NOW) accounts (including Super NOWs)... 94,400 114,682 144 Total time and savings deposits n a. n a. n a. 801,328 808,280 Quarterly averages 145 Total loans 908,679 684,056 146 Obligations (other than securities) of states and political subdivisions in the United States 15,156 10,828 147 Transaction accounts in domestic offices (NOW accounts, automated transfer service (ATS) accounts, and telephone and preauthorized transfer accounts) 94,482 116,237 Nontransaction accounts in domestic offices 148 Money market deposit accounts 232,838 165,226 149 Other savings deposits 112,201 113,120 150 Time certificates of deposit of $100,000 or more 121,616 92,655 151 All other time deposits 252,738 321,973 152 Number of banks 11,659 219 n.a. n.a. 2,856 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Special Tables • November 1992 4.21 DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or more or with foreign offices1 Consolidated Report of Condition, June 30, 1992 Millions of dollars, except as noted Members NNoonn-mmeemmbbeerrss Total National State 1 Total assets4 2,711,885 2,103,333 1,662,252 441,081 608,552 2 Cash and balances due from depository institutions 169,926 139,518 112,900 26,618 30,408 3 Cash items in process of collection and unposted debits 86,802 76,965 61,642 15,323 9,837 4 Currency and coin 27,175 22,151 18,462 3,689 5,024 5 Balances due from depository institutions in the United States 27,520 17,732 14,176 3,555 9,788 6 Balances due from banks in foreign countries and foreign central banks 7,331 6,239 5,384 856 1,091 7 Balances due from Federal Reserve Banks 21,098 16,431 13,236 3,1% 4,667 8 Total securities, loans and lease financing receivables, (net of unearned income) 2,334,481 1,785,402 1,430,592 354,809 549,079 9 Total securities, book value 576,122 430,918 330,526 100,392 145,203 10 U.S. Treasury securities 180,760 130,992 101,605 29,387 49,767 11 U.S. government agency and corporation obligations 279,129 217,235 167,632 49,603 61,894 12 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 134,216 109,494 87,789 21,705 24,722 All other 144,912 107,740 79,843 27,897 37,172 Securities issued by states and political subdivisions in the United States 54,606 38,807 28,739 10,069 15,799 Other domestic debt securities 50,368 36,756 26,5% 10,160 13,612 All holdings of private certificates of participation in pools of residential mortgages 3,156 2,583 2,295 288 572 All other 47,213 34,173 24,301 9,872 13,040 Foreign debt securities 1,601 1,129 1,038 91 472 19 Equity securities 9,658 5,999 4,916 1,083 3,660 20 Marketable 4,965 2,065 1,799 266 2,900 21 Investments in mutual funds 3,038 1,418 1,297 120 1,620 22 Other 1,969 663 514 149 1,306 23 LESS: Net unrealized loss 42 16 13 3 27 24 Other equity securities 4,694 3,934 3,117 817 760 25 Federal funds sold and securities purchased under agreements to resell 130,728 106,281 81,513 24,768 24,447 26 Federal funds sold 48,456 30,423 26,427 3,9% 18,033 27 Securities purchased under agreements to resell 4,831 3,527 3,219 308 1,304 28 Total loans and lease financing receivables, gross 1,634,588 1,252,811 1,022,128 230,684 381,777 29 LESS: Unearned income on loans 6,957 4,609 3,575 1,035 2,348 30 Total loans and leases (net of unearned income) 1,627,631 1,248,202 1,018,553 229,649 379,429 Total loans, gross, by category 31 Loans secured by real estate 729,350 539,162 451,444 87,718 190,188 32 Construction and land development 84,412 64,026 54,045 9,982 20,386 Farmland 9,109 5,471 4,692 779 3,638 One-to-four-family residential properties 386,215 288,663 242,737 45,927 97,552 Revolving, open-end and extended under lines of credit 68,665 52,307 43,364 8,943 16,358 All other loans 317,551 236,356 199,373 36,984 81,194 Multifamily (five or more) residential properties 23,880 16,752 13,482 3,270 7,128 Nonfarm nonresidential properties 225,734 164,250 136,489 27,761 61,484 39 Commercial banks in the United States 22,521 17,124 13,560 3,564 5,397 40 Other depository institutions in the United States 1,175 1,005 916 89 170 41 Banks in foreign countries 3,805 3,609 1,473 2,136 1% 42 Finance agricultural production and other loans to farmers .. 16,048 11,043 9,997 1,045 5,006 43 Commercial and industrial loans 412,835 333,566 265,088 68,478 79,269 44 U.S. addressees (domicile) 409,765 330,877 263,343 67,534 78,888 45 Non-U.S. addressees (domicile) 3,070 2,688 1,745 943 382 46 Acceptances of other banks9 754 529 356 173 224 47 Of U.S. banks 502 381 222 158 121 48 Of foreign banks 90 76 76 0 14 49 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 323,598 236,645 198,359 38,286 86,953 50 Credit cards and related plans 62,333 43,351 40,740 2,612 18,981 51 Other (includes single payment and installment) 109,857 65,129 54,362 10,767 44,728 52 Loans to foreign governments and official institutions 1,116 1,074 893 180 43 53 Obligations (other than securities) of states and political subdivisions in the United States (includes nonrated industrial development obligations) 25,494 20,891 15,505 5,386 4,603 54 Taxable 1,807 1,492 1,166 325 315 55 Tax-exempt 23,687 19,400 14,339 5,061 4,288 56 Other loans 67,746 63,129 43,890 19,239 4,618 57 Loans for purchasing and carrying securities 16,865 15,886 9,130 6,755 980 58 All other loans 50,881 47,243 34,759 12,484 3,638 59 Lease financing receivables 30,147 25,036 20,647 4,388 5,111 60 Customers' liability on acceptances outstanding 11,702 10,673 7,810 2,863 1,029 61 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs 57,478 51,840 23,546 28,294 5,637 62 Remaining assets 195,776 167,740 110,950 56,790 28,036 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A73 4.20—Continued Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 63 Total liabilities and equity capital 2,711,885 2,103,333 1,662,252 441,081 608,552 64 Total liabilities3 2,498,217 1,940,932 1,535,137 405,795 557,285 65 2,020,800 1,543,868 1,253,138 290,730 476,932 66 Individuals, partnerships, and corporations 1,875,067 1,429,210 1,163,829 265,380 445,857 67 U.S. government 5,628 4,895 4,294 601 732 68 States and political subdivisions in the United States 74,746 54,151 44,479 9,672 20,595 69 Commercial banks in the United States 31,764 28,537 21,943 6,594 3,227 70 Other depository institutions in the United States 7,484 5,074 3,990 1,084 2,410 71 Banks in foreign countries 7,315 6,859 3,861 2,998 456 72 Foreign governments and official institutions 1,193 1,097 641 456 96 73 Certified and official checks 17,604 14,045 10,100 3,945 3,560 74 Total transaction accounts 623,208 495,358 395,803 99,555 127,850 75 Individuals, partnerships, and corporations 535,738 421,170 339,711 81,459 114,568 76 3,544 2,887 2,422 465 656 77 States and political subdivisions in the United States 27,160 20,921 16,942 3,979 6,239 78 Commercial banks in the United States 27,461 25,611 19,881 5,730 1,850 79 Other depository institutions in the United States 3,961 3,299 2,590 709 662 80 Banks in foreign countries 6,879 6,619 3,734 2,885 260 81 Foreign governments and official institutions 861 805 423 382 56 82 17,604 14,045 10,100 3,945 3,560 83 Demand deposits (included in total transaction accounts) 411,193 335,656 262,792 72,863 75,537 84 Individuals, partnerships, and corporations 337,047 270,931 214,403 56,528 66,116 85 3,359 2,731 2,274 457 627 86 States and political subdivisions in the United States 14,066 11,629 9,401 2,228 2,437 87 Commercial banks in the United States 27,438 25,610 19,880 5,729 1,828 88 Other depository institutions in the United States 3,942 3,287 2,578 709 655 89 6,877 6,619 3,734 2,884 259 90 Foreign governments and official institutions 860 805 423 382 55 91 17,604 14,045 10,100 3,945 3,560 9? Total nontransaction accounts 1,397,592 1,048,510 857,335 191,175 349,082 93 Individuals, partnerships, and corporations 1,339,329 1,008,040 824,118 183,921 331,289 94 2,084 2,008 1,873 135 76 95 States and political subdivisions in the United States 47,586 33,230 27,537 5,692 14,356 % Commercial banks in the United States 4,303 2,926 2,062 864 1,377 97 U.S. branches and agencies of foreign banks 283 131 40 91 152 98 Other commercial banks in the United States 4,020 2,795 2,022 773 1,224 99 Other depository institutions in the United States 3,523 1,775 1,400 375 1,748 100 436 239 126 113 196 101 Foreign branches of other U.S. banks 12 11 8 3 11 102 Other banks in foreign countries 424 228 118 110 11%% 103 Foreign governments and official institutions 332 292 218 74 40 104 Federal funds purchased and securities sold under agreements to repurchase10 224,853 188,865 134,898 53,967 35,988 105 33,522 26,024 22,208 3,816 7,498 106 Securities sold under agreements to repurchase 24,833 14,081 12,163 1,917 10,752 107 Demand notes issued to the U.S. Treasury 31,821 29,179 19,344 9,835 2,643 108 87,613 64,914 45,598 19,316 22,699 109 Banks liability on acceptances executed and outstanding 11,922 10,893 8,008 2,885 1,029 110 Notes and debentures subordinated to deposits 1,595 1,130 1,055 74 465 Ml Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs 33,674 26,616 24,571 2,045 7,058 112 119,612 102,083 73,095 28,988 17,529 113 Total equity capital7 213,668 162,401 127,115 35,286 51,267 MEMO 114 Holdings of commercial paper included in total loans, gross 1,753 585 580 5 11,,116688 115 Total individual retirement (IRA) and Keogh plan accounts 130,128 99,643 81,774 17,869 30,485 116 50,187 36,507 31,202 5,305 13,679 117 36,808 26,429 22,427 4,002 10,379 118 Issued in denominations of $100,000 or less 3,234 1,664 1,485 179 1,570 119 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 33,574 24,765 20,942 3,823 88,,880099 120 Money market deposit accounts (savings deposits; MMDAs) 399,634 313,443 255,325 58,119 86,190 171 231,857 176,657 133,082 43,575 55,200 127 Total time deposits of less than $100,000 539,623 395,439 331,725 63,714 144,184 123 Time certificates of deposit of $100,000 or more 202,108 143,655 124,419 19,236 58,453 124 Open-accot®; time deposits of $100,000 or more 24,370 19,316 12,785 6,531 5,054 125 All negotia&Ss order of withdrawal (NOW) accounts (including Super NOWs) 209,082 157,935 131,393 26,542 51,147 126 1,609,608 1,208,213 990,346 217,867 401,395 Quarterly averages 177 1,592,736 1,220,341 996,143 222244,,119988 337722,,339955 128 Obligations (other than securities) of states and political subdivisions in the United States 25,984 21,404 15,670 5,734 4,580 112299 Transaction accounts (NOW accounts, automated transfer service (ATS) accounts, and telephone preauthorized transfer accounts) 210,718 158,817 132,052 26,766 51,901 Nontransaction accounts no 398,064 312,965 253,696 59,269 8855,,009999 131 225,321 171,365 129,171 42,194 53,956 13? Time certificates of deposits of $100,000 or more 214,271 153,517 131,747 21,770 60,754 133 574,712 423,433 351,245 72,188 151,279 134 3,075 1,645 1,383 262 1,430 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Special Tables • November 1992 4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities1 Consolidated Report of Condition, June 30, 1992 Millions of dollars, except as noted Members NNoonn-- IItteemm mmeemmbbeerrss Total National State 1 Total assets4 3,067,700 2,240,579 1,769,291 471,288 827,121 2 Cash and balances due from depository institutions 190,715 147,873 119,4% 28,377 42,842 3 Currency and coin 30,521 23,454 19,491 3,%3 7,067 4 Non-interest-bearing balances due from commercial banks 29,402 16,827 13,064 3,763 12,575 5 Other 130,793 107,592 86,941 20,651 23,201 6 Total securities, loans, and lease financing receivables (net of unearned income) 2,658,348 1,909,988 1,527,623 382,365 748,360 7 Total securities, book value 697,190 478,221 368,578 109,643 218,%9 8 U.S. Treasury securities and U.S. government agency and corporation obligations 557,184 386,903 300,478 86,425 170,281 9 Securities issued by states and political subdivisions in the United States 70,154 44,282 32,999 11,283 25,872 10 Other debt securities 58,792 40,370 29,635 10,735 18,421 11 All holdings of private certificates of participation in pools of residential mortgages 3,310 2,645 2,338 308 665 12 All other 55,482 37,725 27,297 10,428 17,757 13 Equity securities 11,061 6,666 5,465 1,201 4,395 14 Marketable 5,987 2,468 2,156 312 3,519 15 Investments in mutual funds 3,948 1,809 1,643 166 2,139 2,118 688 536 151 1,430 17 LESS: Net unrealized loss 79 28 24 4 50 18 Other equity securities 5,073 4,198 3,310 888 875 19 Federal funds sold and securities purchased under agreements to resell8 147,100 113,375 86,957 26,419 33,725 20 Federal funds sold 64,651 37,460 31,830 5,630 27,191 21 Securities purchased under agreements to resell 5,008 3,584 3,259 325 1,424 22 Total loans and lease financing receivables, gross 1,822,496 1,323,577 1,076,111 247,466 498,919 23 LESS: Unearned income on loans 8,437 5,185 4,023 1,163 3,252 24 Total loans and leases (net of unearned income) 1,814,058 1,318,392 1,072,089 246,303 495,667 Total loans, gross, by category 25 Loans secured by real estate 829,890 576,662 479,929 %,733 225533,,222288 26 Construction and land development 90,411 66,418 55,812 10,606 23,993 27 Farmland 19,536 8,712 7,276 1,436 10,824 28 One-to-four-family residential properties 441,521 309,505 258,426 51,079 132,016 29 Revolving, open-end loans, and extended under lines of credit 71,768 53,637 44,299 9,338 18,131 30 All other loans 369,754 255,868 214,128 41,741 113,885 31 Multifamily (five or more) residential properties 25,958 17,544 14,084 3,461 8,414 32 Nonfarm nonresidential properties 252,463 174,482 144,331 30,151 77,981 33 Loans to depository institutions 27,633 21,791 15,993 5,798 5,842 34 Loans to finance agricultural production and other loans to farmers 35,578 17,579 15,197 2,382 18,000 35 Commercial and industrial loans 445,180 346,694 274,822 71,872 98,485 36 Acceptances of other banks 948 614 428 187 334 37 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 355,739 249,005 207,973 41,032 110066,,773344 38 Credit cards and related plans 64,097 44,088 41,362 2,727 20,009 39 Other (includes single payment installment) 140,234 76,752 63,354 13,398 63,482 40 Obligations (other than securities) of states and political subdivisions in the United States 26,764 21,333 15,855 5,478 5,431 1,858 1,515 1,181 334 343 42 Tax-exempt 24,905 19,818 14,674 5,144 5,087 70,172 64,705 45,132 19,572 5,468 44 Lease financing receivables 30,591 25,194 20,783 4,411 5,397 45 Customers' liability on acceptances outstanding 11,715 10,683 7,818 2,865 1,033 46 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs 57,478 51,840 23,546 28,294 5,637 206,921 172,036 114,354 57,681 34,886 3,067,700 2,240,579 1,769,291 471,288 827,121 49 Total liabilities5 2,820,746 2,065,589 1,632,399 433,191 755,156 50 Total deposits 2,335,634 1,665,381 1,348,045 317,335 670,254 51 Individuals, partnerships, and corporations 2,164,988 1,541,323 1,251,488 289,835 623,665 6,078 5,085 4,440 645 993 53 States and political subdivisions in the United States 94,745 61,301 50,260 11,041 33,445 54 Commercial banks in the United States 32,994 29,332 22,309 7,023 3,662 55 Other depository institutions in the United States 8,699 5,507 4,311 1,1% 3,192 19,593 14,871 10,734 4,137 4,722 57 All other 8,537 7,961 4,504 3,458 576 709,630 529,995 423,147 106,847 179,635 59 Individuals, partnerships, and corporations 612,037 451,738 364,046 87,692 160,299 3,893 3,038 2,537 501 854 61 States and political subdivisions in the United States 34,116 23,348 18,933 4,415 10,767 62 Commercial banks in the United States 28,090 26,184 20,081 6,102 1,907 63 Other depository institutions in the United States 4,144 3,385 2,657 729 759 64 Certified and official checks 19,593 14,871 10,734 4,137 4,722 65 All other 7,757 7,430 4,159 3,271 327 66 Demand deposits (included in total transaction accounts) 452,549 352,858 276,074 76,784 99,691 67 Individuals, partnerships, and corporations 373,508 285,893 226,175 59,718 87,615 3,693 2,881 2,388 493 813 69 States and political subdivisions in the United States 15,818 12,235 9,897 2,338 3,583 70 Commercial banks in the United States 28,066 26,181 20,080 6,101 1,884 71 Other depository institutions in the United States 4,117 3,368 2,642 726 748 72 Certified and official checks 19,593 14,871 10,734 4,137 4,722 73 All other 7,754 7,429 4,159 3,270 325 74 Total nontransaction accounts 1,626,004 1,135,386 924,898 210,488 490,619 75 Individuals, partnerships, and corporations 1,552,951 1,089,585 887,442 202,143 463,366 76 U.S. government 2,186 2,047 1,902 144 139 77 States and political subdivisions in the United States 60,629 37,952 31,327 6,625 22,677 78 Commercial banks in the United States 4,904 3,148 2,228 921 1,755 79 Other depository institutions in the United States 4,554 2,122 1,654 468 2,433 80 All other 780 531 345 187 248 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A75 4.22—Continued Members Item TToottaall mmee NN mm oo bb nn ee -- rrss Total National State 81 Federal funds purchased and securities sold under agreements to repurchase 228,065 190,318 135,913 54,404 37,747 82 Federal funds purchased 34,907 26,727 22,636 4,091 8,180 83 Securities sold under agreements to repurchase 26,659 14,830 12,751 2,079 11,829 84 Demand notes issued to the U.S. Treasury 32,211 29,325 19,463 9,863 2,886 85 Other borrowed money 88,676 65,337 45,942 19,396 23,339 86 Banks liability on acceptances executed and outstanding 11,935 10,902 8,016 2,887 1,033 87 Notes and debentures subordinated to deposits 1,685 1,148 1,065 83 537 88 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs 33,674 26,616 24,571 2,045 7,058 89 Remaining liabilities 122,539 103,178 73,954 29,224 19,361 90 Total equity capital7 246,954 174,989 136,893 38,097 71,965 MEMO 91 Assets held in trading accounts 33,383 32,085 21,589 10,497 1,297 92 U.S. Treasury securities 15,792 15,649 9,506 6,143 143 93 U.S. government agency corporation obligations 4,109 3,950 3,632 317 160 94 Securities issued by states and political subdivisions in the United States 1,362 1,322 923 399 40 95 Other bonds, notes, and debentures 713 655 560 96 58 96 Certificates of deposit 1,064 1,029 731 298 35 97 Commercial paper 104 104 104 0 0 98 Bankers acceptances 2,788 2,712 1,936 776 76 99 Other 6,617 6,340 3,923 2,417 277 100 Total individual retirement (IRA) and Keogh plan accounts 148,631 106,497 87,147 19,350 42,134 101 Total brokered deposits 50,776 36,721 31,357 5,364 14,054 102 Total brokered retail deposits 37,364 26,627 22,569 4,058 10,737 103 Issued in denominations of $100,000 or less 3,721 1,831 1,606 224 1,890 104 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 33,644 24,797 20,963 3,834 8,847 Savings deposits 105 Money market deposit accounts (savings deposits; MMDAs) 438,857 329,627 267,978 61,649 109,230 106 Other savings deposits 267,222 190,572 143,717 46,855 76,650 107 Total time deposits of less than $100,000 663,584 440,549 366,873 73,677 223,035 108 Time certificates of deposit of $100,000 or more 230,975 154,994 133,282 21,713 75,981 109 Open-account time deposits of $100,000 or more 25,366 19,643 13,048 6,595 5,723 110 All negotiable order of withdrawal (NOW) accounts (including Super NOWs) 252,875 174,956 145,149 29,807 77,919 111 Total time and savings deposits 1,883,085 1,312,522 1,071,971 240,551 570,563 Quarterly averages 112 Total loans 1,776,005 1,289,501 1,048,944 240,557 486,504 113 Transaction accounts (NOW accounts, automated transfer service (ATS) accounts, and telephone and preauthorized transfer accounts) 255,806 176,296 146,159 30,137 79,510 Nontransaction accounts 114 Money market deposit accounts 437,048 329,056 266,279 62,777 107,992 115 Other savings deposits 259,395 184,796 139,481 45,314 74,600 116 Time certificates of deposit of $100,000 or more 243,171 164,896 140,628 24,268 78,275 117 All other time deposits 701,037 469,373 387,055 82,317 231,664 118 Number of banks 11,659 4,648 3,699 949 7,011 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 March 31, 1984 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 sum 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 sum 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 intraoffice transactions are nullified by consolidation, total assets and total sum 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 sum to totals. 2. Foreign offices include branches in foreign countries, Puerto Rico, and U.S. 10. Only the domestic portion of federal funds purchased and securities sold territories and possessions; subsidiaries in foreign countries; all offices of Edge are reported here; therefore the components do not sum to totals. 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 sum to totals. 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 • November 1992 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 3-7, 19921 A. Commercial and Industrial Loans 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 r z 0 a e 0 g 0 e ) m av at e u r r a i g ty e 2 W av e e ig r h ag te e d Standard c s o e l c la b u t y r e e r d a l co u m m m n a e d m d n e e t r i t - (p P p l e a o a r r a t c t i n i e o c n s n i - t ) Days effective3 (percent) (percent) ALL BANKS 1 Overnight6 8,805,409 6,526 4.03 7.0 56.2 2 One month and under (excluding overnight) 7,062,069 965 15 4.56 30.0 68.7 10.3 3 Fixed rate 5,521,672 1,630 15 4.37 22.2 64.6 8.3 4 Floating rate 1,540,397 392 16 5.22 57.7 83.4 17.3 5 Over one month and under a year . 9,004,833 145 149 5.65 56.6 79.1 10.2 6 Fixed rate 3,813,018 144 112 5.25 43.9 74.0 9.0 7 Floating rate 5,191,815 146 176 5.94 65.9 82.8 11.1 8 Demand7 14,461,854 304 5.75 66.1 63.6 17.1 9 Fixed rate 3,026,128 780 4.60 32.0 64.6 54.4 10 Floating rate 11,435,726 261 6.05 75.1 63.4 7.2 11 Total short term 39,334,165 332 59 5.13 44.2 66.4 12.3 12 Fixed rate (thousands of dollars) .. 21,166,228 603 29 4.42 21.2 62.8 15.0 13 1-99 423,655 14 124 8.94 78.1 38.7 3.0 14 100-499 431,936 219 144 6.39 57.9 51.8 2.9 15 500-999 325,658 681 74 5.16 36.4 77.1 8.3 16 1,000-4,999 3,801,772 2,240 44 4.61 27.1 71.0 9.0 17 5,000-9,999 3,463,216 6,823 21 4.38 18.0 74.0 12.1 18 10,000 and over 12,719,990 19,930 19 4.14 16.8 58.1 18.5 19 Floating rate (thousands of dollars) 18,167,938 218 139 5.95 71.0 70.6 9.2 20 1-99 1,571,817 25 179 7.48 80.7 84.7 1.8 21 100-499 3,061,555 198 194 7.01 76.5 88.1 6.3 22 500-999 1,588,721 652 219 6.75 65.3 90.5 8.5 23 1,000-4,999 3,748,167 1,915 152 6.51 58.8 82.2 9.5 24 5,000-9,999 1,676,787 6,971 130 5.62 53.6 72.6 10.5 25 10,000 and over 6,520,891 27,004 75 4.65 79.0 47.0 11.9 Months 26 Total long term 4,186,272 197 6.50 62.2 64.8 5.3 27 Fixed rate (thousands of dollars) .. 1,249,763 113 6.28 50.3 51.8 2.9 28 1-99 153,450 16 9.41 87.6 17.4 .5 29 100-499 153,177 158 8.57 80.8 30.9 2.4 30 500-999 59,991 694 7.89 80.0 37.2 10.9 31 1,000 and over 883,145 5,381 5.23 36.6 62.5 2.9 32 Floating rate (thousands of dollars) 2,936,509 289 6.60 67.3 70.3 6.3 33 1-99 178,510 26 7.71 85.3 61.1 1.8 34 100-499 503,956 212 7.68 70.0 60.9 6.3 35 500-999 324,709 664 6.71 77.3 59.4 10.0 36 1,000 and over 1,929,333 3,793 6.19 63.3 75.4 6.2 Loan rate (percent) Days Effective3 Nominal8 LOANS MADE BELOW PRIME10 37 Overnight6 8,708,929 4.00 6.7 56.1 8.0 38 One month and under (excluding overnight) 6,346,375 4,663 4.26 4.22 26.4 68.1 11.0 39 Over one month and under a year 5,085,223 657 4.43 4.40 43.3 82.8 14.3 40 Demand7 6,837,763 3,089 4.20 4.15 60.9 39.7 28.5 41 Total short term 26,978,289 2,181 35 32.0 59.8 42 Fixed rate 19,369,635 3,438 4.14 4.11 17.3 62.7 16.0 43 Floating rate 7,608,654 1,130 4.32 4.27 69.4 52.5 12.7 Months 44 Total long term 1,392,863 623 4.67 4.61 32.1 77.8 3.0 45 Fixed rate .. 720,980 549 4.69 4.64 29.9 63.9 1.4 46 Floating rate 671,883 728 4.64 4.57 34.5 92.6 4.8 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 Weighted Loan rate (percent) Loans Loans Most Amount of Average average secured made Partici- common Characteristic loans size maturity2 Weighted by co u m nd m e i r t - p lo a a ti n o s n base ($1,000) ($1,000) Days e a ff v e e c r t a i g v e e 3 c (p ol e l r a c t e e n ra t) l (p m er e c n en t t) (percent) p r r a ic t i e n 5 g LARGE BANKS 1 Overnight6 6,688,354 8,304 9.2 50.9 10.6 Fed funds 2 One month and under (excluding overnight) 5,537,544 4,083 14 4.47 31.6 75.1 8.6 Domestic 3 Fixed rate 4,293,395 6,283 14 4.37 24.9 73.1 5.0 Domestic 4 Floating rate 1,244,150 1,849 15 4.81 54.9 82.0 20.9 Prime 5 Over one month and under a year . 4,884,831 860 124 5.17 55.3 86.6 12.7 Foreign 6 Fixed rate 2,410,385 2,127 103 4.93 44.6 83.0 7.5 Foreign 7 Floating rate 2,474,446 544 145 5.40 65.7 90.1 17.8 Prime 8 Demand7 10,356,312 586 5.32 64.7 54.6 17.8 Prime 9 Fixed rate 2,580,053 2,258 4.54 33.3 60.3 57.8 Foreign 10 Floating rate 7,776,259 470 5.58 75.2 52.7 4.6 Prime 11 Total short term 27,467,042 1,076 4.82 42.8 63.5 13.3 Fed funds 12 Fixed rate (thousands of dollars) .. 15,972,187 4,243 24 4.36 22.6 63.2 16.3 Other 13 1-99 21,719 26 127 6.82 65.3 51.7 .0 Prime 14 100-499 130,887 249 60 5.54 48.3 74.1 5.5 Prime 15 500-999 208,422 699 62 5.12 35.6 81.8 8.9 Other 16 1,000-4,999 2,734,003 2,276 43 4.67 29.4 70.5 9.6 Other 17 5,000-9,999 2,740,246 6,845 19 4.41 20.6 69.7 10.9 Other 18 10,000 and over 10,136,911 20,353 19 4.22 20.7 59.0 19.8 Other 19 Floating rate (thousands of dollars) 11,494,854 528 101 5.46 70.9 63.9 9.2 Prime 20 1-99 432,362 31 173 7.23 81.8 87.5 2.2 Prime 21 100-499 1,136,899 208 162 6.82 69.2 90.6 4.1 Prime 22 500-999 714,246 663 174 6.62 57.7 91.7 8.8 Prime 23 1,000-4,999 2,050,433 2,044 133 6.08 56.5 84.8 10.5 Prime 24 5,000-9,999 1,332,721 7,054 104 5.67 54.3 69.5 12.3 Prime 25 10,000 and over 5,828,193 29,360 70 4.65 81.0 44.9 9.5 Fed funds Months 26 Total long term 2,534,725 883 6.02 .22 57.8 68.5 6.3 Prime 27 Fixed rate (thousands of dollars) .. 702,366 1,433 5.25 .44 41.4 53.6 1.6 Foreign 28 1-99 7,118 28 9.64 .39 90.2 22.3 .0 Other 29 100-499 19,213 208 7.86 .54 93.6 56.2 19.0 Other 30 500-999 23,007 665 7.09 1.13 53.5 68.2 21.7 Domestic 31 1,000 and over 653,029 5,941 5.06 .36 38.9 53.3 .4 Foreign 32 Floating rate (thousands of dollars) 1,832,359 769 6.32 .10 64.1 74.2 8.1 Prime 33 1-99 32,538 37 7.11 .09 84.4 70.3 7.3 Prime 34 100-499 221,033 237 6.85 .09 74.1 76.4 10.6 Prime 35 500-999 162,259 717 6.39 .13 62.1 78.8 14.7 Prime 36 1,000 and over 1,416,529 4,247 6.21 .29 62.2 73.4 7.0 Prime Loan rate (percent) Days Prime rate9 Effective3 Nominal8 LOANS MADE BELOW PRIME10 37 Overnight6 6,601,185 38 One month and under (excluding overnight) 5,150,794 7,113 14 4.29 4.26 29.6 75.4 8.7 6.00 39 Over one month and under a year 3,344,664 3,456 106 4.40 4.37 46.9 87.8 15.5 6.00 40 Demand7 6,004,075 5,945 4.15 4.10 65.3 31.8 26.4 6.00 41 Total short term 21,100,719 6,081 57.3 42 Fixed rate 14,838,544 5,877 4.17 4.15 20.0 62.2 17.3 6.00 43 Floating rate 6,262,175 6,625 4.21 4.17 73.9 45.7 10.8 6.00 Months 44 Total long term 979,265 3,177 40 4.55 4.49 33.2 71.9 3.1 6.00 45 Fixed rate .. 508,353 4,402 4.51 4.46 31.7 54.7 .8 6.00 46 Floating rate 470,912 2,443 4.59 4.52 34.8 90.4 5.5 6.00 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Special Tables • November 1992 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 3-7, 1992'—Continued 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) maturity2 W av e e ig r h ag te e d Standard coll b at y e ral co u m m n e d m n e t i r t - (p p l e o a r a t c i n o en s n t ) Days effective3 (percent) (percent) OTHER BANKS 1 Overnight6 2,117,055 3,892 72.9 2 One month and under (excluding overnight) 1,524,525 256 18 4.89 24.0 45.7 16.3 3 Fixed rate 1,228,278 454 17 4.39 13.1 35.2 19.8 4 Floating rate 296,247 91 23 6.94 69.5 89.3 2.1 5 Over one month and under a year . 4,120,002 73 178 6.22 58.2 70.1 7.3 6 Fixed rate 1,402,633 55 127 5.81 42.8 58.6 11.7 7 Floating rate 2,717,369 87 204 6.43 66.1 76.1 5.0 8 Demand7 4,105,542 137 6.83 69.5 86.4 15.2 9 Fixed rate 446,075 163 4.94 24.2 89.1 34.5 10 Floating rate 3,659,467 135 7.06 75.0 86.1 12.8 11 Total short term 11,867,124 128 5.85 47.4 73.1 9.9 12 Fixed rate (thousands of dollars) .. 5,194,041 166 43 4.62 16.9 61.5 10.9 13 1-99 401,936 14 124 9.06 78.8 38.0 3.1 14 100-499 301,050 208 166 6.76 62.1 42.1 1.8 15 500-999 117,236 653 90 5.23 37.8 68.6 7.2 16 1,000-4,999 1,067,769 2,153 46 4.45 21.3 72.1 7.4 17 5,000-9,999 722,970 6,741 27 4.27 8.1 90.2 16.9 18 10,000 and over 2,583,080 18,428 17 3.83 1.6 54.7 13.2 19 Floating rate (thousands of dollars) 6,673,083 108 186 6.80 71.1 82.2 9.2 20 1-99 1,139,454 23 180 7.58 80.3 83.7 1.6 21 100-499 1,924,657 193 202 7.12 80.8 86.7 7.6 22 500-999 874,474 644 243 6.86 71.5 89.6 8.3 23 1,000-4,999 1,697,734 1,779 175 7.02 61.6 79.0 8.3 24 5,000-9,999 344,065 6,666 221 5.41 50.8 84.7 3.8 25 10,000 and over 692,699 16,120 102 4.68 62.2 64.3 31.8 Months 26 Total long term 1,651,547 90 7.24 69.1 59.2 3.8 27 Fixed rate (thousands of dollars) .. 547,398 52 7.60 61.8 49.6 4.6 28 1-99 146,332 15 9.40 87.5 17.2 .5 29 100-499 133,965 153 8.68 78.9 27.3 .0 30 500-999 36,985 713 8.38 96.5 17.9 4.2 31 1,000 and over 230,117 4,245 5.70 30.0 88.4 9.8 32 Floating rate (thousands of dollars) 1,104,150 142 7.06 72.7 63.9 3.4 33 1-99 145,972 25 7.84 85.5 59.1 .5 34 100-499 282,923 196 8.33 66.7 48.7 2.9 35 500-999 162,450 618 7.02 92.4 40.1 5.3 36 1,000 and over 512,804 2,927 6.16 66.1 81.1 3.9 Loan rate (percent) Days Effective3 Nominal8 LOANS MADE BELOW PRIME 37 Overnight6 2,107,743 7,485 3.83 72.8 38 One month and under (excluding overnight) 1,195,581 1,877 17 4.12 4.06 12.5 36.4 20.7 39 Over one month and under a year 1,740,559 257 143 4.49 4.44 36.4 73.0 12.1 40 Demand7 833,687 693 4.56 4.54 29.0 96.3 43.7 41 Total short term 5,877,571 661 17.4 68.8 42 Fixed rate 4,531,091 1,457 32 4.03 3.98 8.3 64.2 12.0 43 Floating rate 1,346,479 233 160 4.82 4.76 48.3 84.1 21.3 Months 44 Total long term 413,598 47 4.89 29.7 91.7 45 Fixed rate .. 212,627 178 5.13 5.08 25.7 86.0 2.8 46 Floating rate 200,971 275 4.74 4.69 34.0 97.7 3.0 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 "basic" or "reference" rate); the federal funds rate; domestic money market billion. For all insured banks, total assets averaged $275 million. rates other than the federal funds rate; foreign money market rates; and other base 2. Average maturities are weighted by loan size and exclude demand loans. rates not included in the foregoing classifications. 3. Effective (compounded) annual interest rates are calculated from the stated 6. Overnight loans mature on the following business day. rate and other terms of the loans and weighted by loan size. 7. Demand loans have no stated date of maturity. 4. The chances are about two out of three that the average rate shown would 8. Nomina] (not compounded) annual interest rates are calculated from the differ by less than this amount from the average rate that would be found by a stated rate and other terms of the loans and weighted by loan size. complete survey of lending at all banks. 9. The prime rate reported by each bank is weighted by the volume of loans 5. The most common base rate is that used to price the largest dollar volume of extended and then averaged. loans. Base pricing rates include the prime rate (sometimes referred to as a bank's 10. The proportion of loans made at rates below the prime may vary substantially from the proportion of such loans outstanding in banks' portfolios. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 Special Tables • November 1992 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 19921 Millions of dollars All states New York California Illinois IItteemm in T c I l B o u t F d a i s l n g I o B n F ly s in T c I l B o u t F d a i s l n g I o B n F ly s in T c I l B o u t F d a i s l n g I o B n F ly s in T c I l B o u t F d a s i l n g I o B n F ly s 1 Total assets4 702,267 2%, 065 530,529 232,844 83,058 38,354 52,475 16,362 2 Claims on nonrelated parties 611,605 207,202 454,240 174,579 75,577 15,480 52,142 12,701 i Cash and balances due from depository institutions 156,881 129,274 135,987 111100,,000099 88,,779911 88,,220033 1100,,770011 1100,,225599 4 Cash items in process of collection and unposted debits 2,865 0 2,739 0 13 0 9999 0 5 Currency and coin (U.S. and foreign) 24 n.a. 17 n.a. 2 n.a. 11 n.a. 6 Balances with depository institutions in United States .. 89,355 6666,,337766 7777,,330077 5555,,445555 55,,556622 55,,000055 55,,882266 55,,664433 7 U.S. branches and agencies of other foreign banks (including their IBFs) 83,095 6633,,559966 7711,,887700 5522,,884444 55,,221199 44,,998855 55,,552200 55,,551144 Other depository institutions in United States (including their IBFs) 6,261 22,,778800 55,,443366 22,,661111 343 20 306 129 9 Balances with banks in foreign countries and with foreign central banks 64,340 62,898 55,738 54,553 3,200 3,197 4,765 4,617 10 Foreign branches of U.S. banks 1,848 1,781 1,541 11,,448811 156 156 140 140 11 Other banks in foreign countries and foreign central banks 62,492 61,116 54,198 53,072 3,044 3,041 4,625 4,477 12 Balances with Federal Reserve Banks 297 n.a. 186 n.a. 15 n.a. 10 n.a. 13 Total securities and loans 377,666 67,983 253,928 55,888 59,985 6,494 36,813 2,157 14 Total securities, book value 71,293 14,800 65,571 13,735 3,402 627 1,918 386 15 U.S. Treasury 23,199 n.a. 23,016 n.a. 65 n.a. 76 n.a. 16 Obligations of U.S. government agencies and corporations 13,380 n.a. 12,896 n.a. 319 n.a. 109 n.a. 17 Other bonds, notes, debentures and corporate stock (including state and local securities) 34,713 14,800 29,659 13,735 3,018 627 1,732 386 18 Federal funds sold and securities purchased under agreements to resell 28,045 2,560 26,927 2,269 412 166 264 0 19 U.S. branches and agencies of other foreign banks 11,610 1,271 11,132 1,266 108 5 129 0 20 Commercial banks in United States 2,487 26 2,286 26 54 0 71 0 21 Other 13,948 1,264 13,509 977 250 161 64 0 22 Total loans, gross 306,625 53,193 188,420 42,161 56,606 5,869 35,054 1,771 23 Less: Unearned income on loans 251 9 63 7 23 2 158 0 24 Equals: Loans, net 306,374 53,184 188,356 42,154 56,584 5,867 34,895 1,771 Total loans, gross, by category 2255 Real estate loans 54,458 590 27,617 324 17,369 210 5,420 56 26 Loans to depository institutions 46,446 30,359 36,084 23,477 5,303 3,828 2,717 1,214 27 Commercial banks in United States (including IBFs).... 24,237 11,748 18,061 8,277 4,228 2,790 1,648 546 28 U.S. branches and agencies of other foreign banks ... 21,242 10,696 15,955 7,456 3,860 2,569 1,182 536 29 Other commercial banks in United States 2,995 11,,005522 22,,110066 821 368 221 465 10 30 Other depository institutions in United States (including IBFs) 15 0 15 0 0 0 0 0 31 Banks in foreign countries 22,194 18,611 18,008 15,200 1,074 1,038 1,069 668 32 Foreign branches of U.S. banks 683 542 554 417 110 110 15 15 ii Other banks in foreign countries 21,511 18,069 17,455 14,783 964 928 1,054 653 34 Other financial institutions 17,989 802 15,633 717 770 48 1,247 21 35 Commercial and industrial loans 168,425 13,728 93,001 10,977 31,848 1,537 25,080 361 36 U.S. addressees (domicile) 145,512 451 75,279 314 29,511 121 24,507 8 37 Non-U.S. addressees (domicile) 22,913 13,277 17,722 10,663 2,338 1,417 573 353 38 Acceptances of other banks 1,818 48 937 40 587 0 142 0 39 U.S. banks 953 2 389 2 499 0 2 0 40 Foreign banks 865 46 549 38 88 0 140 0 41 Loans to foreign governments and official institutions (including foreign central banks) 8,745 7,423 7,324 66,,445566 331 213 128 120 42 Loans for purchasing or carrying securities (secured and unsecured) 4,842 109 4,571 77 269 32 0 0 43 All other loans 3,901 135 3,252 93 129 0 320 0 44 All other assets 49,012 7,384 37,399 6,413 6,389 617 4,365 285 45 Customers' liability on acceptances outstanding 18,919 n.a. 13,307 n.a. 4,404 n.a. 850 n.a. 46 U.S. addressees (domicile) 11,581 n.a. 6,870 n.a. 3,846 n.a. 755 n.a. 47 Non-U.S. addressees (domicile) 7,338 n.a. 6,437 n.a. 558 n.a. 95 n.a. 48 Other assets including other claims on nonrelated parties 30,093 7,384 24,092 6,413 1,984 617 3,515 285 49 Net due from related depository institutions5 90,662 88,863 76,288 5588,,226644 77,,448811 2222,,887744 332 33,,666611 50 Net due from head office and other related depository institutions 90,662 n.a. 76,288 n.a. 77,,448811 n.a. 332 n.a. 51 Net due from establishing entity, head offices, and other related depository institutions5 n.a. 88,863 n.a. 58,264 n.a. 22,874 n.a. 3,661 52 Total liabilities4 702,267 296,065 530,529 232,844 83,058 38,354 52,475 16,362 53 Liabilities to nonrelated parties 599,632 256,582 481,6% 200,128 69,951 37,839 30,491 11,117 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A81 4.30—Continued Millions of dollars All states New York California Illinois IItteemm ex T c I l B o u t F d a s i l n g I o B n F ly s ex T c I l B o u t F d a i s l n g I o B n F ly s ex T c I l B o u t F d a s i l n g I o B n F ly s ex T c I l B o u t F d a s i l n g I o B n F ly s 54 Total deposits and credit balances 144,483 192,592 125,453 170,867 4,365 10,569 7,484 4,458 55 Individuals, partnerships, and corporations 102,279 13,623 85,529 7,823 4,002 704 6,408 116 56 U.S. addressees (domicile) 86,229 438 75,710 387 2, 15 0 5,373 51 57 Non-U.S. addressees (domicile) 16,051 13,185 9,818 7,435 1,887 704 1,035 65 58 Commercial banks in United States (including IBFs)... 28,756 61,119 27,260 54,518 81 4,146 998 1,578 59 U.S. branches and agencies of other foreign banks .. 12,353 55,718 11,824 49,872 36 3,611 444 1,403 60 Other commercial banks in United States 16,403 5,401 15,436 4,646 45 535 553 175 61 Banks in foreign countries 5,232 99,021 5,017 91,060 18 4,707 66 2,696 62 Foreign branches of U.S. banks 1,738 5,510 1,673 4,638 0 617 65 241 63 Other banks in foreign countries 3,494 93,511 3,344 86,423 18 4,090 1 2,455 64 Foreign governments and official institutions (including foreign central banks) 2,545 18,278 2,197 16,914 228 1,012 33 6688 65 All other deposits and credit balances 5,021 552 4,857 552 15 0 1 0 66 Certified and official checks 651 594 22 8 67 Transaction accounts and credit balances (excluding IBFs) 7,976 6,548 294 312 68 Individuals, partnerships, and corporations 5,854 4,645 245 300 69 U.S. addressees (domicile) 4,176 3,533 206 295 70 Non-U.S. addressees (domicile) 1,678 1,113 39 5 71 Commercial banks in United States (including IBFs)... 139 136 1 0 72 U.S. branches and agencies of other foreign banks .. 14 13 0 0 73 Other commercial banks in United States 125 123 1 0 74 Banks in foreign countries 875 776 8 11 75 Foreign branches of U.S. banks 11 11 0 00 76 Other banks in foreign countries 864 766 8 1 77 Foreign governments and official institutions (including foreign central banks) 289 225533 33 2 78 All other deposits and credit balances 168 143 14 1 79 Certified and official checks 651 594 22 8 80 Demand deposits (included in transaction accounts and credit balances) 7,267 6,125 236 300 81 Individuals, partnerships, and corporations 5,431 4,490 202 288 82 U.S. addressees (domicile) 4,011 3,467 179 283 83 Non-U.S. addressees (domicile) 1,420 1,022 24 5 84 Commercial banks in United States (including IBF)s... 131 n.a. 128 n.a. 0 n.a. 0 n.a . 85 U.S. branches and agencies of other foreign banks .. 13 12 0 0 86 Other commercial banks in United States 118 116 0 0 87 Banks in foreign countries 766 668 88 11 88 Foreign branches of U.S. banks 11 11 00 00 89 Other banks in foreign countries 755 657 8 1 90 Foreign governments and official institutions (including foreign central banks) 208 117733 3 2 91 All other deposits and credit balances 80 73 0 1 92 Certified and official checks 651 594 22 8 93 Non-transaction accounts (including MMDAs, excluding IBFs) 136,507 118,905 4,071 7,172 94 Individuals, partnerships, and corporations 96,425 80,883 3,756 6,108 95 U.S. addressees (domicile) 82,052 72,178 1,909 5,078 % Non-U.S. addressees (domicile) 14,372 8,706 1,847 1,030 97 Commercial banks in United States (including IBFs)... 28,617 27,124 80 >98 9 9 9 8 O U t . h S e . r b c r o a m nc m he e s r c a ia n l d b a a g n e k n s c i i e n s U o n f i o te th d e r S t f a o t r e e s i gn banks .. 1 1 6 2 , , 2 3 7 3 7 9 1 1 5 1 , , 3 8 1 1 3 1 4 3 4 6 4 55 4 3 4 100 Banks in foreign countries 4,357 4,240 10 65 101 Foreign branches of U.S. banks 1,727 1,662 0 65 102 Other banks in foreign countries 2,629 2,578 10 0 103 Foreign governments and official institutions (including foreign central banks) 2,256 1,944 224 11 104 All other deposits and credit balances 4,854 4,713 0 00 105 IBF deposit liabilities 192,592 170,867 10,569 4,458 106 Individuals, partnerships, and corporations 13,623 7,823 704 116 107 U.S. addressees (domicile) 438 387 0 51 108 Non-U.S. addressees (domicile) 13,185 7,435 704 65 109 Commercial banks in United States (including IBFs)... 61,119 54,518 4,146 1,578 110 U.S. branches and agencies of other foreign banks .. n.a. 55,718 n a. 49,872 n.a . 3,611 n.a . 1,403 111 Other commercial banks in United States 5,401 4,646 535 175 112 Banks in foreign countries 99,021 91,060 4,707 2,696 113 Foreign branches of U.S. banks 5,510 4,638 617 241 114 Other banks in foreign countries 93,511 86,423 4,090 2,455 115 Foreign governments and official institutions (including foreign central banks) 18,278 16,914 1,012 68 116 All other deposits and credit balances 552 552 0 0 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A82 Special Tables • November 1992 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 1992'—Continued Millions of dollars All states New York California Illinois IItteemm inc T I l B u ot F d a i s l n g I o B n F ly s in T c I l B o u t F d a i s l n g I o B n F ly s inc T I l B o u t F d a i s l n g I o B n F ly s inc T I l B o u t F d a i s l n g I o B n F ly s 117 Federal funds purchased and securities sold under agreements to repurchase 97,660 7,779 80,464 5,113 11,052 1,732 5,691 902 118 U.S. branches and agencies of other foreign banks 13,597 2,186 9,587 1,124 2,927 606 967 424 119 Other commercial banks in United States 27,444 728 20,239 236 4,067 329 3,035 163 120 Other 56,619 4,865 50,637 3,752 4,059 797 1,689 315 121 Other borrowed money 116,782 50,331 67,794 19,024 37,801 24,977 8,931 5,609 122 Owed to nonrelated commercial banks in United States (including IBFs) 46,241 20,708 20,880 4,794 20,273 13,435 3,637 2,122 123 Owed to U.S. offices of nonrelated U.S. banks 13,879 2,310 9,169 937 3,114 1,150 1,151 180 124 Owed to U.S. branches and agencies of nonrelated foreign banks 32,363 18,398 11,711 3,858 17,159 12,285 2,486 1,942 125 Owed to nonrelated banks in foreign countries 28,129 26,756 12,970 11,754 11,614 11,509 3,152 3,132 126 Owed to foreign branches of nonrelated U.S. banks ... 1,893 1,648 921 685 895 895 65 65 12.7 Owed to foreign offices of nonrelated foreign banks 26,237 25,108 12,049 11,069 10,719 10,614 3,087 3,067 128 Owed to others 42,411 2,867 33,943 2,476 5,914 33 2,142 356 129 All other liabilities 48,114 5,879 37,118 5,125 6,164 561 3,928 148 130 Branch or agency liability on acceptances executed and outstanding 21,263 n. a. 15,579 n.a. 4,425 n.a. 611 n.a. 131 Other liabilities to nonrelated parties 26,851 5,879 21,539 5,125 1,739 561 3,317 148 132 Net due to related depository institutions5 102,635 39,483 48,833 32,715 13,107 515 21,984 5,246 133 Net due to head office and other related depository institutions 102,635 n.a. 48,833 n. a. 13,107 n.a. 21,984 n.a. 134 Net due to establishing entity, head office, and other related depository institutions n.a. 39,483 n.a. 32,715 n.a. 515 n.a. 5,246 MEMO 135 Non-interest bearing balances with commercial banks in United States 1,431 0 1,117 0 134 0 96 0 136 Holding of commercial paper included in total loans 2,638 2,490 104 32 137 Holding of own acceptances included in commercial and industrial loans 3,334 2,600 477 100 138 Commercial and industrial loans with remaining maturity of one year or less 98,350 50,891 19,673 15,977 139 Predetermined interest rates 61,528 n.a. 30,810 n.a . 12,369 n.a. 11,744 n.a. 140 Floating interest rates 3366,,882222 20,081 7,304 4,233 141 Commercial and industrial loans with remaining maturity of more than one year 70,075 42,110 12,176 9,103 14? Predetermined interest rates 22,591 12,426 3,807 4,367 143 Floating interest rates 47,484 29,685 8,369 4,736 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A83 4.30—Continued Millions of dollars All states New York California Illinois IItteemm ex T cl o u t d a i l n g IBFs ex T cl o u t d a i l n g IBFs exc T l o u t d a i l n g IBFs ex T cl o u t d a i l n g IBFs IBFs only IBFs only IBFs only IBFs only 111144444444 CCCCoooommmmppppoooonnnneeeennnnttttssss ooooffff ttttoooottttaaaallll nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnn aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ttttoooottttaaaallll ddddeeeeppppoooossssiiiittttssss aaaannnndddd ccccrrrreeeeddddiiiitttt bbbbaaaallllaaaannnncccceeeessss ooooffff nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnnaaaallll aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddiiiinnnngggg IIIIBBBBFFFFssss 145,337 t 128,586 t 4,593 t 7,210 t 111144445555 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 104,419 92,068 2,466 5,462 111144446666 OOOOtttthhhheeeerrrr ttttiiiimmmmeeee ddddeeeeppppoooossssiiiittttssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 111144447777 TTTTiiiimmmmeeee oooo rrrr CCCC mmmm DDDD oooo ssss rrrr iiii eeee nnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 25,025 n\.a . 22,100 n \ .a . 1,164 n » .a . 1,421 n1.a . wwwwiiiitttthhhh rrrreeeemmmmaaaaiiiinnnniiiinnnngggg mmmmaaaattttuuuurrrriiiittttyyyy ooooffff mmmmoooorrrreeee tttthhhhaaaannnn 11112222 mmmmoooonnnntttthhhhssss ........ 15,893 14,418 963 327 All states2 New York California Illinois in T c I l B o u t F d a i s l n g I o B n F ly s in T c I l B o u t F d a i s l n g I o B n F ly s inc T I l B o u t F d a i s l n g I o B n F ly s inc T I l B o u t F d a i s l n g I o B n F ly s 111144448888 MMMMaaaarrrrkkkkeeeetttt vvvvaaaalllluuuueeee ooooffff sssseeeeccccuuuurrrriiiittttiiiieeeessss hhhheeeelllldddd 71,178 14,637 65,344 13,536 3,587 667 1,844 383 111144449999 IIIImmmmmmmmeeeeddddiiiiaaaatttteeeellllyyyy aaaavvvvaaaaiiiillllaaaabbbblllleeee ffffuuuunnnnddddssss wwwwiiiitttthhhh aaaa mmmmaaaattttuuuurrrriiiittttyyyy ggggrrrreeeeaaaatttteeeerrrr tttthhhhaaaannnn oooonnnneeee ddddaaaayyyy iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ooootttthhhheeeerrrr bbbboooorrrrrrrroooowwwweeeedddd mmmmoooonnnneeeeyyyy 71,720 n.a. 36,974 n.a. 27,098 n.a. 6,054 n.a. 111155550000 NNNNuuuummmmbbbbeeeerrrr ooooffff rrrreeeeppppoooorrrrttttssss ffffiiiilllleeeedddd6666 579 0 271 0 134 0 52 0 1. Data are aggregates of categories reported on the quarterly form FFIEC 002, that no IBF data re reported for that item, either because the item is not an eligible "Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign IBF asset or liability or because that level of detail is not reported for IBFs. From Banks." Details may not add to totals because of rounding. This form was first December 1981 through September 1985, IBF data were included in all applicable used for reporting data as of June 30, 1980, and was revised as of December 31, items reported. 1985. From November 1972 through May 1980, U.S. branches and agencies of 4. Total assets and total liabilities include net balances, if any, due from or due foreign banks had filed a monthly FR 886a report. Aggregate data from that report to related banking institutions in the United States and in foreign countries (see were available through the Federal Reserve statistical release G.ll, last issued on footnote 5). On the former monthly branch and agency report, available through July 10, 1980. Data in this table and in the G. 11 tables are not strictly comparable the G.ll statistical release, gross balances were included in total assets and total because of differences in reporting panels and in definitions of balance sheet liabilities. Therefore, total asset and total liability figures in this table are not items. comparable to those in the G.ll tables. 2. Includes the District of Columbia. 5. "Related banking institutions" includes the foreign head office and other 3. Effective December 1981, the Federal Reserve Board amended Regulations U.S. and foreign branches and agencies of the bank, the bank's parent holding D and Q to permit banking offices located in the United States to operate company, and majority-owned banking subsidiaries of the bank and of its parent International Banking Facilities (IBFs). As of December 31, 1985 data for IBFs holding company (including subsidiaries owned both directly and indirectly). are reported in a separate column. These data are either included in or excluded 6. In some cases two or more offices of a foreign bank within the same from the total columns as indicated in the headings. The notation "n.a." indicates metropolitan area file a consolidated report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 Index to Statistical Tables References are to pages A3-A83 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Demand deposits—Continued Agricultural loans, commercial banks, 20, 21 Ownership by individuals, partnerships, and Assets and liabilities (See also Foreigners) corporations, 22 Banks, by classes, 19-21 Turnover, 16 Domestic finance companies, 34 Depository institutions Federal Reserve Banks, 11 Reserve requirements, 9 Financial institutions, 26 Reserves and related items, 4, 5, 6, 13 Foreign banks, U.S. branches and agencies, 22, 80-83 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 BANKERS acceptances, 10, 23, 24 foreign countries (See Interest rates) Bankers balances, 19-21, 80-83. (See also Foreigners) Discounts and advances by Reserve Banks (See Loans) Bonds (See also U.S. government securities) Dividends, corporate, 33 New issues, 33 Rates, 24 EMPLOYMENT, 45 Branch banks, 22, 55 Eurodollars, 24 Business activity, nonfinancial, 44 Business expenditures on new plant and equipment, 33 Business loans (See Commercial and industrial loans) FARM mortgage loans, 36 Federal agency obligations, 5, 10, 11, 12, 29, 30 CAPACITY utilization, 46 Federal credit agencies, 31 Capital accounts Federal finance Banks, by classes, 19, 71, 73, 75 Debt subject to statutory limitation, and types and ownership Federal Reserve Banks, 11 of gross debt, 28 Central banks, discount rates, 67 Receipts and outlays, 26, 27 Certificates of deposit, 24 Treasury financing of surplus, or deficit, 26 Commercial and industrial loans Treasury operating balance, 26 Commercial banks, 17, 20, 70, 72, 74, 76-79 Federal Financing Bank, 26, 31 Weekly reporting banks, 20-22 Federal funds, 7, 18, 20, 21, 22, 24, 26 Commercial banks Federal Home Loan Banks, 31 Assets and liabilities, 19-21, 76-79 Federal Home Loan Mortgage Corporation, 31, 35, 36 Commercial and industrial loans, 17, 19,20, 21, 22 Federal Housing Administration, 31, 35, 36 Consumer loans held, by type and terms, 37, 38, 70, 72, 74 Federal Land Banks, 36 Loans sold outright, 20 Federal National Mortgage Association, 31, 35, 36 Nondeposit funds, 18, 80-83 Federal Reserve Banks Number by classes, 71, 73, 75 Condition statement, 11 Real estate mortgages held, by holder and property, 36 Discount rates (See Interest rates) Terms of lending, 76-79 U.S. government securities held, 5, 11, 12, 28 Time and savings deposits, 4 Federal Reserve credit, 5, 6, 11, 12 Commercial paper, 23, 24, 34 Federal Reserve notes, 11 Condition statements (See Assets and liabilities) Federally sponsored credit agencies, 31 Construction, 44,49 Finance companies Consumer installment credit, 37, 38 Assets and liabilities, 34 Consumer prices, 44, 46 Business credit, 34 Consumption expenditures, 52, 53 Loans, 37, 38 Corporations Paper, 23, 24 Nonfinancial, assets and liabilities, 33 Financial institutions Profits and their distribution, 33 Loans to, 20, 21, 22 Security issues, 32, 65 Selected assets and liabilities, 26 Cost of living (See Consumer prices) Float, 51 Credit unions, 37 Flow of funds, 39,41,42,43 Currency and coin, 19, 70, 72, 74 Foreign banks, assets and liabilities of U.S. branches and Currency in circulation, 5, 14 agencies, 21, 22, 80-83 Customer credit, stock market, 25 Foreign currency operations, 11 Foreign deposits in U.S. banks, 5, 11, 20, 21 DEBITS to deposit accounts, 16 Foreign exchange rates, 68 Debt (See specific types of debt or securities) Foreign trade, 54 Demand deposits Foreigners Banks, by classes, 19-22, 71, 73, 75 Claims on, 55, 57, 60, 61, 62, 64 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

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 P. HAMBLEY, Special Assistant to the Board DONALD B. ADAMS, Assistant Director BOB STAHLY MOORE, Special Assistant to the Board PETER HOOPER III, Assistant Director DIANE E. WERNEKE, Special Assistant to the Board KAREN H. JOHNSON, Assistant Director RALPH W. SMITH, JR., Assistant Director LEGAL DIVISION DIVISION OF RESEARCH AND STATISTICS J. VIRGIL MATTINGLY, JR., General Counsel SCOTT G. ALVAREZ, Associate General Counsel MICHAEL J. PRELL, Director RICHARD M. ASHTON, Associate General Counsel EDWARD C. ETTIN, Deputy Director OLIVER IRELAND, Associate General Counsel WILLIAM R. JONES, Associate Director KATHLEEN M. O'DAY, Associate General Counsel THOMAS D. SIMPSON, Associate Director MARYELLEN A. BROWN, Assistant to the General Counsel LAWRENCE SLIFMAN, Associate Director DAVID J. STOCKTON, Associate Director OFFICE OF THE SECRETARY MARTHA BETHEA, Deputy Associate Director WILLIAM W. WILES, Secretary PETER A. TINSLEY, Deputy Associate Director JENNIFER J. JOHNSON, Associate Secretary MYRON L. KWAST, Assistant Director PATRICK M. PARKINSON, Assistant Director BARBARA R. LOWREY, Associate Secretary MARTHA S. SCANLON, Assistant Director ELLEN MALAND, Assistant Secretary JOYCE K. ZICKLER, Assistant Director JOHN J. MINGO, Adviser DIVISION OF BANKING SUPERVISION AND REGULATION LEVON H. GARABEDIAN, Assistant Director (Administration ) RICHARD SPILLENKOTHEN, Director STEPHEN C. SCHEMERING, Deputy Director DIVISION OF MONETARY AFFAIRS DON E. KLINE, Associate Director WILLIAM A. RYBACK, Associate Director DONALD L. KOHN, Director FREDERICK M. STRUBLE, Associate Director DAVID E. LINDSEY, Deputy Director HERBERT A. BIERN, Deputy Associate Director BRIAN F. MADIGAN, Assistant Director ROGER T. COLE, Deputy Associate Director RICHARD D. PORTER, Assistant Director JAMES I. GARNER, Deputy Associate Director NORMAND R.V. BERNARD, Special Assistant to the Board HOWARD A. AMER, Assistant Director GERALD A. EDWARDS, JR., Assistant Director DIVISION OF CONSUMER JAMES D. GOETZINGER, Assistant Director AND COMMUNITY AFFAIRS LAURA M. HOMER, Assistant Director GRIFFITH L. GARWOOD, Director JAMES V. HOUPT, Assistant Director GLENN E. LONEY, Assistant Director JACK P. JENNINGS, Assistant Director DOLORES S. SMITH, Assistant Director MICHAEL G. MARTINSON, Assistant Director RHOGER H PUGH, Assistant Director SIDNEY M. SUSSAN, Assistant Director MOLLY S. WASSOM, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A87 JOHN P. LAWARE SUSAN M. PHILLIPS LAWRENCE B. LINDSEY OFFICE OF DIVISION OF RESERVE BANK OPERATIONS STAFF DIRECTOR FOR MANAGEMENT AND PAYMENT SYSTEMS S. DAVID FROST, Staff Director CLYDE H. FARNSWORTH, JR., Director WILLIAM SCHNEIDER, Special Assignment: DAVID L. ROBINSON, Deputy Director (Finance and Project Director, National Information Center Control) PORTIA W. THOMPSON, Equal Employment Opportunity CHARLES W. BENNETT, Assistant Director Programs Officer JACK DENNIS, JR., Assistant Director EARL G. HAMILTON, Assistant Director DIVISION OF HUMAN RESOURCES JEFFREY C. MARQUARDT, Assistant Director MANAGEMENT JOHN H. PARRISH, Assistant Director DAVID L. SHANNON, Director LOUISE L. ROSEMAN, Assistant Director JOHN R. WEIS, Associate Director FLORENCE M. YOUNG, Assistant Director ANTHONY V. DIGIOIA, Assistant Director OFFICE OF THE INSPECTOR GENERAL JOSEPH H. HAYES, JR., Assistant Director FRED HOROWITZ, Assistant Director BRENT L. BOWEN, Inspector General BARRY R. SNYDER, Assistant Inspector General OFFICE OF THE CONTROLLER GEORGE E. LIVINGSTON, Controller STEPHEN J. CLARK, Assistant Controller (Programs and Budgets) DARRELL R. PAULEY, Assistant Controller (Finance) DIVISION OF SUPPORT SERVICES ROBERT E. FRAZIER, Director GEORGE M. LOPEZ, Assistant Director DAVID L. WILLIAMS, Assistant Director DIVISION OF INFORMATION RESOURCES MANAGEMENT STEPHEN R. MALPHRUS, Director BRUCE M. BEARDSLEY, Deputy Director 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 RICHARD C. STEVENS, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

88 Federal Reserve Bulletin • November 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 RICHARD G. DAVIS, Associate Economist NORMAND R.V. BERNARD, Deputy Secretary THOMAS E. DAVIS, Associate Economist JOSEPH R. COYNE, Assistant Secretary DAVID E. LINDSEY, Associate Economist GARY P. GILLUM, Assistant Secretary ALICIA H. MUNNELL, Associate Economist J. VIRGIL MATTINGLY, JR., General Counsel LARRY J. PROMISEL, Associate Economist ERNEST T. PATRIKIS, Deputy General Counsel CHARLES J. SIEGMAN, Associate Economist MICHAEL J. PRELL, Economist THOMAS D. SIMPSON, Associate Economist EDWIN M. TRUMAN, Economist DAVID J. STOCKTON, Associate Economist JOHN M. DAVIS, Associate Economist WILLIAM J. MCDONOUGH, Manager System Open Market Account MARGARET L. GREENE, Deputy Manager for Foreign Operations JOAN E. LOVETT, Deputy Manager for Domestic Operations 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, JR., 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, Oregon DEBORAH B. GOLDBERG, Washington, D.C. MICHAEL W. TIERNEY, Philadelphia, Pennsylvania MICHAEL M. GREENFIELD, St. Louis, Missouri 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, 1991-92. FEDERAL RESERVE BULLETIN. Monthly. $25.00 per year or COUNTRY MODEL, May 1984. 590 pp. $14.50 each. $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- 1984. 1985. 254 pp. $12.50 per copy. SIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each. 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 are 1990. 1991. 196 pp. $25.00 per copy. 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 Refinancings 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 text or to be added to the mailing list for the series may be sent 161. A REVIEW OF CORPORATE RESTRUCTURING ACTIVITY, 1980-90, by Margaret Hastings Pickering. May 1991. to Publications Services. 21pp. 162. EVIDENCE ON THE SIZE OF BANKING MARKETS FROM Staff Studies 1-145 are out of print. MORTGAGE LOAN RATES IN TWENTY CITIES, by Stephen A. Rhoades. February 1992. 11 pp. 146. THE ROLE OF THE PRIME RATE IN THE PRICING OF 163. CLEARANCE AND SETTLEMENT IN U.S. SECURITIES MAR- BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84, by KETS, by Patrick Parkinson, Adam Gilbert, Emily Gollob, Thomas F. Brady. November 1985. 25 pp. Lauren Hargraves, Richard Mead, Jeff Stehm, and Mary 147. REVISIONS IN THE MONETARY SERVICES (DIVISIA) IN- Ann Taylor. March 1992. 37 pp. DEXES OF THE MONETARY AGGREGATES, by Helen T. Farr and Deborah Johnson. December 1985. 42 pp. 148. THE MACROECONOMIC AND SECTORAL EFFECTS OF THE REPRINTS OF SELECTED Bulletin ARTICLES ECONOMIC RECOVERY TAX ACT: SOME SIMULATION Some Bulletin articles are reprinted. The articles listed below RESULTS, by Flint Bray ton 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 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 Baltimcw^ DE-—V Buffalo NJ NY BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 7-G 8-H Birmingham. M W Bl /* 'Jfp JNMi i**—* JKemphis ^ Si ^^TIFLPRORIEANS , CHICAGO ST. LOUIS MINNEAPOLIS io-j iigammm 1122--LL KANSAS CITY -™ AALLAASSKKAA ^^^^ vHH^s^SjJHHHHn Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis HHAAWWAAIIII FFTT SSAANN FFRRAANNCCIISSCCOO

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 William C. Conrad 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 75201 Leo E. Linbeck, Jr. Robert D. McTeer, Jr. Vacancy Tony J. Salvaggio El Paso 79999 Alvin T. Johnson Sammie C.Clay Houston 77252 Judy Ley Allen Robert Smith, IE1 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