Federal Reserve Bulletin, 1993-01

VOLUME 79 • NUMBER 1 • JANUARY 1993 FEDERAL RESERVE 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 1 THE FOREIGN BANK SUPERVISION Proposed revisions to the staff commentary ENHANCEMENT ACT OF 1991 for Regulation Z. The Foreign Bank Supervision Enhancement Changes in Board staff. Act (FBSEA) established uniform federal standards for entry and expansion of foreign banks in the United States and substantially 20 RECORD OF POLICY ACTIONS OF THE increased the role of the Federal Reserve FEDERAL OPEN MARKET COMMITTEE System in the supervision and regulation of At its meeting on October 6, 1992, the Comtheir U.S. activities. This article analyzes the mittee adopted a directive that called for objectives of the FBSEA and discusses its maintaining the existing degree of pressure implementation. on reserve positions and that included a marked bias toward possible easing during the intermeeting period. Two of the members 11 TREASURY AND FEDERAL RESERVE expressed a strong preference for a symmetric FOREIGN EXCHANGE OPERATIONS directive with regard to possible intermeeting Although the dollar briefly reached all-time policy adjustment, while two others were lows against the mark and the yen during the firmly persuaded of the desirability of an August-October period under review, it immediate increase in reserve availability to closed the period up on balance 4.5 percent strengthen the growth of M2. Accordingly, in against the mark, down about 3.0 percent the context of the Committee's long-run against the yen, and up 6.8 percent on a trade- objectives for price stability and sustainable weighted basis. economic growth, and giving careful consideration to economic, financial, and monetary developments, it was decided that slightly 15 INDUSTRIAL PRODUCTION AND greater monetary restraint might be accept- CAPACITY UTILIZATION able or slightly lesser monetary restraint would be acceptable during the intermeeting Industrial production increased 0.3 percent in period. The reserve conditions contemplated October after having fallen 0.2 percent in at this meeting were expected to be consistent September. Total industrial capacity utilizawith growth in M2 and M3 at annual rates of tion edged up 0.1 percent in October, to about 2 and 1 percent respectively over the 78.5 percent. three-month period from September through December. 18 ANNOUNCEMENTS Amendment to Regulation C. 27 LEGAL DEVELOPMENTS Availability of 1993 fee schedules for services Various bank holding company, bank service provided by the Federal Reserve Banks. corporation, and bank merger orders; and pending cases. Increase in the net transaction accounts to which a 3 percent reserve requirement will apply. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 FINANCIAL AND BUSINESS STATISTICS A72 BOARD OF GOVERNORS AND STAFF These tables reflect data available as of A74 FEDERAL OPEN MARKET COMMITTEE November 25, 1992. AND STAFF; ADVISORY COUNCILS A3 GUIDE TO TABULAR PRESENTATION A76 FEDERAL RESERVE BOARD A4 Domestic Financial Statistics PUBLICATIONS A44 Domestic Nonfinancial Statistics A53 International Statistics A78 MAPS OF THE FEDERAL RESERVE SYSTEM A69 GUIDE TO STATISTICAL RELEASES AND SPECIAL TABLES A80 FEDERAL RESERVE BANKS, BRANCHES, AND OFFICES A70 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Foreign Bank Supervision Enhancement Act of 1991 Ann E. Misback, of the Board's Legal Division, with the comparable limitations applicable to prepared this article. U.S. banking organizations. Based on a policy • > - i•• . .f. ,•• , ;; . s of national treatment, the IBA also attempted to On December 19, 1991, the Congress enacted adapt the dual banking system—the U.S. systhe Foreign Bank Supervision Enhancement tem permitting banks to be chartered by either Act. Based on a legislative proposal drafted by state or federal authorities—to the unique the Board of Governers of the Federal Reserve characteristics of foreign bank branches and System at the request of the congressional agencies. banking committees, the act was intended to fill Although it was largely successful in this efgaps in the supervision and regulation of foreign fort, the IBA left foreign banks free of certain banks and to ensure that the banking policies federal requirements imposed on U.S. banks. established by the Congress were implemented For example, it did not require prior federal in a fair and consistent manner with respect to review of foreign bank entry into the U.S. marall entities (domestic and foreign) conducting a ket, nor did it permit a federal role in the termibanking business in the United States. It estab- nation of a state-licensed branch or agency of a lished uniform federal standards for entry and foreign bank. expansion of foreign banks in the United States By 1991, the foreign bank presence in the and substantially increased the role of the Fed- United States had grown substantially (see eral Reserve System in the supervision and chart). Branches and agencies of approximately regulation of their U.S. activities. This article 280 foreign banks held aggregate assets of $626 analyzes the objectives of the act and discusses billion, or 18 percent of total banking assets in its implementation. this country, and operated 565 offices, the vast majority of which were state-licensed.2 Cases of fraud and other criminal activity by some foreign banks in the 1980s convinced the Federal Reserve Board that both state and federal regula- THE NEED FOR LEGISLATION tors needed to pay greater coordinated attention Foreign banks with U.S. branches and agencies to the U.S. offices of these institutions. In parwere first subjected to federal regulation with ticular, the Board came to believe that prior the passage of the International Banking Act of federal review of foreign bank entry and expan- 1978 (IBA). At that time, 122 foreign banks sion in the U.S. market and a federal role in were operating offices in the United States and terminating a branch or agency of a foreign bank accounted for $90 billion in assets.1 The IB A for unsafe and unsound banking practices were required these banks to maintain reserves and desirable. generally limited their activities and geographic expansion in the United States in accordance 2. "Statement by J. Virgil Mattingly, Jr., General Counsel, Board of Governors of the Federal Reserve System, before 1. International Banking Act of1978: Report of the Senate the Subcommittee on Consumer and Regulatory Affairs of the Committee on Banking, Housing, and Urban Affairs to Committee on Banking, Housing, and Urban Affairs, U.S. Accompany H.R.10899, 95 Cong. 2 Sess. (Government Print- Senate, May 23, 1991," Federal Reserve Bulletin, vol. 77 ing Office, 1978), p. 2. (July 1991), p. 579. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • January 1993 tain a U.S. banking presence. At that time, Growth in the number and assets of foreign banks and foreign banks wishing to establish state-licensed their branches and agencies in the United States, banking offices were not required to undergo any December 1980-June 1992 federal review or obtain any federal approval before beginning operations. 600 • The proposal set forth the standards that the Federal Reserve would apply in determining Branches and agencies whether to approve the establishment of a U.S. 400 office of a foreign bank. The key recommendation was that the Board should be able to take into account whether a foreign bank was sub- Foreign banks ject to comprehensive, consolidated supervi- I sion by its home country regulatory authorities Billions of dollars in considering whether to allow the foreign bank to establish new offices in the United States. Experience with the Bank of Credit and Total assets of branches 600 and agencies Commerce International—whose far-flung operations were not subject to scrutiny on a 400 consolidated basis by a single regulator—demonstrated the importance of this standard. Additional suggested standards included requiring that the foreign bank have adequate financial and managerial resources and that the Federal Reserve have access to sufficient information Data are plotted from year-end to year-end. The number of foreign countries with branch and agency operations in the United States was thirty-four in 1980, on the U.S. activities of the foreign bank and its forty-nine in 1985, fifty-four in 1990, and fifty-seven as of June 1992. affiliates to be able to determine and enforce compliance with U.S. law. The proposal would have also required the same standards to be THE BOARD'S LEGISLATIVE PROPOSAL applied by the Office of the Comptroller of the On May 9, 1991, the Board sent to the banking Currency (OCC) in licensing new federal committees a draft bill that was subsequently branches or agencies. introduced in the Senate and the House. The • The proposal recommended that prior appurpose of the Board's legislative proposal was proval by the Federal Reserve be required for to "ensure that foreign bank operations in this foreign banks to establish representative offices country are regulated, supervised, and exam- in the United States and that such offices be ined in the same manner as U.S. banks."3 To examined to ensure that they did not engage in this end, the Federal Reserve made several unlicensed and unsupervised banking. recommendations in the proposed legislation. • The Federal Reserve also requested the authority to terminate the activities of a state- • The draft proposal required federal approval licensed branch, agency, commercial lending for foreign banks seeking to establish state-li- company subsidiary, or representative office for censed branches and agencies or commercial violations of law or for unsafe or unsound banklending subsidiaries in the United States. The ing practices as a necessary complement to the federal approval requirement was designed to requested authority to approve establishment of give the Federal Reserve Board, as the agency such offices. responsible for overall supervision of foreign • The Federal Reserve sought increased aubanks in the United States, a role in determining thority to examine regularly the U.S. operations whether such institutions might establish or reof foreign banks and clear authority to conduct simultaneous examinations of multiple offices of the same foreign bank when appropriate. 3. Ibid. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Foreign Bank Supervision Enhancement Act of 1991 3 • The Federal Reserve proposed that foreign approval of the establishment of federally libanks operating in the United States, or their censed branches and agencies by foreign banks affiliates, be required to report loans they make would have remained solely the responsibility of that are secured by 25 percent or more of the the OCC. The statute also provided that the stock of any U.S.-insured depository institution Board could not approve establishment of a or company that controls such a depository in- branch or agency unless the foreign bank were stitution. subject to consolidated home country supervi- • The proposal required that a foreign bank sion. maintaining branches or agencies in the United The FBSEA also limits the permissible activi- States obtain Federal Reserve approval before ties of a state-licensed branch or agency to the acquiring more than 5 percent of the voting activities permitted by the OCC for a federally shares of a bank or bank holding company. This licensed branch. A state licensed branch or requirement, which already applied to U.S. bank agency may engage in an activity that is permitholding companies, sought to ensure that the ted by state law but not yet sanctioned by the standards in the Bank Holding Company Act OCC only if the Board finds the activity to be (BHC Act) on control, financial and managerial consistent with sound banking practices and, in resources, and community convenience and the case of an insured branch only, the Federal needs were satisfied in all such acquisitions. Deposit Insurance Corporation (FDIC) finds that • The Board proposed a clarification of the the activity poses no significant risk to the de- IBA granting the federal banking agencies au- posit insurance fund. Unlike most substantive thority to share supervisory information with portions of the FBSEA, this restriction became their foreign counterparts, subject to adequate effective on December 19, 1992, one year after assurances of confidentiality, when the disclo- enactment. sure of information was appropriate in carrying The FBSEA also imposed new restrictions on out the federal agency's responsibilities and deposit taking by foreign banks. It provided that when the sharing of information would not prej- no foreign bank may accept or maintain deposit udice the interest of the United States. This accounts "having balances of less than proposed recognized that if federal regulators $100,000" except through an insured banking were to have access to the supervisory informa- subsidiary.4 This provision created substantial tion of their foreign counterparts, they would be uncertainty in the market because it could have expected to reciprocate when the foreign regula- been interpreted to prohibit foreign bank offices tor requested comparable information. from taking certain wholesale deposits. Finally, the statute mandated two studies not called for in the original Board proposal. The first FINAL LEGISLATION of these was a comparative analysis by the Federal Reserve and the Treasury Department of The Foreign Bank Supervision Enhancement Act the capital standards applicable to foreign banks (FBSEA) passed the Congress in substantially conducting banking operations in the United the same form in which it was proposed and States and the risk-based capital and leverage became effective immediately upon enactment requirements applicable to U.S. banks; the reon December 19, 1991. A few key additions port was completed and delivered to the Condeserve mention. gress on June 19, 1992 (see box).5 A second The FBSEA requires Federal Reserve ap- study—on the advisability of requiring foreign proval for the establishment of both state-li- banks in the United States to "roll up" their censed and federally licensed branches and agen- current branch and agency operations into sepacies. This approach is broader than that contained in the original proposal, which would have granted the Federal Reserve the authority 4. P.L. 102-242, 105 Stat. 2236, 2303-04 (Dec. 19, 1991). 5. Board of Governors of the Federal Reserve System and to approve the establishment of state-licensed U.S. Department of the Treasury, Capital Equivalency Rebranches and agencies by foreign banks, whereas port, June 19, 1992. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

4 Federal Reserve Bulletin • January 1993 The Capital Equivalency Report ilia Section 214(b) of the FBSEA required the Board In broad terms, the report concluded that the and the Secretary of the Treasury jointly to submit minimum capital standards established by the Basle to the House and Senate banking committees a Accord provide a common basis for evaluating the report analyzing (1) the capital standards for mea- general equivalency of capital among banks from surement of capital adequacy established in 1988 by various countries. In the future, when determining the central bank and supervisory authorities of the whether a foreign bank's capital meets the mini- G-10 countries and contained in the Basle Accord; mum standard, as an initial requirement, applicants (2) foreign regulatory capital standards that apply to from countries that adhere to the Basle Accord will foreign banks conducting banking operations in the be required, at a minimum, to meet the Basle United States; and (3) the relationship of the Basle guidelines as administered by their home country and foreign capital standards to the risk-based supervisors. An applicant from a country not subcapital and leverage requirements applicable to scribing to the Basle Accord will be required to U.S. banks. The report, which was issued on June provide information regarding the capital standard 19, 1992, examined capital standards in twenty-two applied by its home country regulator, as well as countries. Banks from these countries collectively information sufficient to evaluate the applicant's held, as of December 31, 1991, approximately 97 capital position adjusted as appropriate for acpercent of total U.S. banking assets held by foreign counting and structural differences, and, to the banks. All but two of the countries examined fol- extent possible, information comparable to the lloowweeid a risk-based capital standard. Basle framework. der regulations of the OCC and the FDIC, which rately incorporated domestic subsidiaries—was specify the circumstances under which domestic completed on December 19, 1992. retail deposit-taking activities require deposit insurance. In their joint statement, the agencies indicated IMPLEMENT A TION that the statute's intent was to prohibit the establishment of new insured branches by foreign The immediate effectiveness of major portions of banks. The agencies further indicated that they the FBSEA required that implementation prowould not consider a foreign bank branch or ceed quickly. agency to be in violation of the law provided it continued to abide by the OCC and FDIC regu- Initial Guidance lations under section 6 of the IBA.6 A recent technical amendment to the FBSEA, adopted in On December 19, 1991, the Board and the OCC October 1992, has clarified that the statutory issued a joint statement to guide foreign bank prohibition on accepting deposits under $100,000 branches and agencies with respect to the new is limited to domestic retail deposits that require statutory limitation in the FBSEA on deposit deposit insurance protection and does not apply taking. The language in this limitation was to the broader category of all deposits "having general and could have been interpreted to rebalances of less than $100,000."7 quire uninsured foreign bank offices that accepted deposits of less than $100,000, either as an On March 5,1992, interim guidance was issued by Board staff to each of the Reserve Banks, accommodation to their customers or in connecoutlining the process for applying for Board tion with their wholesale operations, to cease approval to establish new foreign bank offices. such activity immediately and to continue to The guidance set forth procedures for the proaccept such deposits only in an insured banking subsidiary. This could have disrupted the noninsured, nondomestic deposit-taking activities of 6. Supervision and Regulation 91-31 (IB) (Dec. 19, 1991). branches and agencies previously permitted un- 7. P.L. 102-550, 106 Stat. 3672 (Oct. 28, 1992). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Foreign Bank Supervision Enhancement Act of 1991 5 cessing of applications and contained summaries offices, the final rule is substantially identical to of the type of information the staff deemed the interim rule with minor changes made to necessary to process an application.8 If a for- reflect the Board staff's experience with applicaeign bank desires to establish an office that was tions filed under the interim rule and clarificanot actually open for business and operating on tions suggested by the public comments. December 19,1991, the foreign bank must file an Much of the rule deals with the standards and application and receive approval before begin- procedures for establishing new foreign bank ning operations. This requirement has meant that offices in the United States. The FBSEA imposes certain foreign banks that had obtained approval the following two mandatory standards for the to begin business from applicable state authori- establishment by a foreign bank of a branch, ties or the OCC before December 19, 1991, but agency, or commercial lending company subsidhad not done so, have had to delay their openings iary: until they could obtain Federal Reserve approval. • The foreign bank must engage directly in the business of banking outside the United States The Interim and Fi,nal Rules and be subject to comprehensive supervision or A regulation on a consolidated basis by the appropriate authorities in its home country. On April 15, 1992, the Board issued an interim • The foreign bank must furnish to the Board rule amending Regulation K (International Bankthe information it needs to assess the application ing Operations) and Regulation Y (Bank Holding adequately.10 Companies and Change in Bank Control) to implement significant portions of the FBSEA.9 The interim rule established procedures in Regulation K for the exercise of the Board's respon- COMPREHENSIVE CONSOLIDATED sibilities relating to the approval, examination, SUPERVISION and termination of foreign bank operations in the United States. It also implemented in Regulation The key standard is comprehensive consolidated K provisions of the FBSEA that permit disclo- supervision. The United States is not the only sure of certain information to foreign supervisors country that has come to view this requirement and establish limits on loans to a single borrower as highly desirable. The Basle Committee on by state branches and agencies. The Board Banking Supervision has recently adopted miniamended Regulation Y to state that foreign bank- mum standards for consolidated supervision of ing organizations acquiring an interest of more banking organizations operating internationthan 5 percent of the voting shares of a U.S. bank ally.11 As defined by the Basle Committee, the or bank holding company must file an application minimum acceptable level of supervision rewith the Board under the BHC Act. The interim quires that the home country supervisor of a rule became effective immediately but provided bank or banking group for a sixty-day comment period during which (a) receive consolidated financial and pruinterested persons could submit their written dential information on the bank's or banking comments on the text. The commenters to the group's global operations, have the reliabilinterim rule included individual foreign banks, ity of this information confirmed to its own trade associations, law firms, and state bank regulators. On November 4, 1992, the Board approved 10. 12 U.S.C. § 3105(d). adoption of a final rule amending Regulations K 11. The Basle Committee on Banking Supervision is composed of representatives of the central banks and supervisory and Y. Except for the treatment of representative authorities from Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, the Netherlands, Sweden, Switzerland, the United Kingdom, and the United States. The committee meets at the Bank for International Settlements in Basle, 8. Supervision and Regulation 92-6 (FIS) (Mar. 5, 1992). Switzerland. It is currently chaired by the president of the 9. 57 Fed. Reg. 12,992 (Apr. 15, 1992). Federal Reserve Bank of New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

6 Federal Reserve Bulletin • January 1993 satisfaction through on-site examination or on-site examinations to the same extent as that of other means, and assess the information as the United States, and financial accounting pracit may bear on the safety and soundness of tices may differ from one jurisdiction to another. the bank or banking group; (b) have the The Board will examine the extent to which the capability to prevent corporate affiliations home country supervisor does the following: or structures that either undermine efforts to maintain consolidated financial informa- • Ensures that the foreign bank has adequate tion or otherwise hinder effective supervi- procedures for monitoring and controlling its sion of the bank or banking group; and (c) activities worldwide have the capability to prevent the bank or • Obtains information on the condition of the banking group from creating foreign bank- foreign bank and its subsidiaries and offices outing establishments in particular jurisdic- side the home country through regular reports of tions.12 examination, audit reports, or otherwise • Obtains information on the dealings and re- The comprehensive consolidated supervision lationship between the foreign bank and its affilstandard set forth in the rule is broadly consistent iates, both foreign and domestic with the Basle Minimum Standards but may also • Receives from the foreign bank financial rego beyond the standards in certain respects. The ports that are consolidated on a worldwide basis, rule applies to both the foreign bank applicant or comparable information that permits analysis and to any parent foreign bank of such an appli- of the foreign bank's financial condition on a cant and emphasizes the importance of access to worldwide, consolidated basis information on the part of the home country • Evaluates prudential standards, such as capsupervisor. The rule requires the Board to deter- ital adequacy and risk asset exposure, on a mine the following: worldwide basis.14 whether the foreign bank is supervised or The commenters on the interim rule generally regulated in such a manner that its home supported the standard and the five illustrative country supervisor receives sufficient infor- factors and these remain the same in the final mation on the worldwide operations of the rule. Some commenters suggested that the Board foreign bank (including the relationship of be permitted to take into account whether a the bank to any affiliate) to assess the for- home country supervisor, while not currently eign bank's overall financial condition and exercising consolidated supervision, was nonecompliance with law and regulation.13 theless making significant progress toward meeting the standard. This approach is advocated in Illustrative Factors the Basle Minimum Supervision Standards.15 In the Board's view, the mandatory language of the The rule sets forth five illustrative factors that the Board will consider in evaluating whether the 14. Ibid. comprehensive supervision standard is met in 15. As discussed above, the Basle Minimum Supervision Standards paper sets forth certain minimum standards for any particular case. The list of factors is not consolidated supervision of a banking group as a whole and exhaustive, and no one factor is determinative. indicates that host countries should determine whether banks The factors were included in the rule in recogni- seeking to enter their markets meet such standards. The paper, however, goes on to say the following: tion of the fact that different supervisory systems deal with particular supervision issues in differ- Some authorities may initially need to make either ent ways. For example, not all systems rely on statutory or administrative changes in order to comply with these new standards; therefore, in cases where an authority fails to meet one or more of these standards, recognition should be given to the extent to which the 12. Basle Committee on Banking Supervision, "Minimum authority is actively working to establish the necessary Standards for the Supervision of International Banking capabilities to permit it to meet all aspects of these Groups and Their Cross Border Establishments" (Basle minimum standards. Minimum Supervision Standards), June 1992. 13. 12 C.F.R. § 211.24(c). See Basle Minimum Supervision Standards, p. 3. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Foreign Bank Supervision Enhancement Act of 1991 7 FBSEA does not permit this flexibility with re- the IBA, the BHC Act, and other applicable spect to applications to establish branches, agen- federal banking statutes; these assurances shall cies, or commercial lending companies. The include a statement from the foreign bank de- Board, however, does retain such flexibility in scribing any laws or other impediments existing the case of applications to establish representa- in any jurisdiction in which the foreign bank or tive offices because the FBSEA provides that the any of its affiliates has material operations that standards—such as comprehensive consolidated would restrict the foreign bank or any of its supervision—which are mandatory for branches, parents from providing information to the Board agencies, and commercial lending companies, • Whether the foreign bank and its U.S. affiliare discretionary for representative offices. ates are in compliance with applicable U.S. law, and whether the applicant has established ade- Other Standards quate controls and procedures in each of its offices to ensure continuing compliance with The FBSEA also contains other standards that U.S. law, including controls directed to detection the Board may consider in determining whether of money laundering and other unsafe or unto approve any U.S. office of a foreign bank. sound banking practices.16 These are the following: The standard that has attracted the most attention • Whether the home country supervisor of the from foreign banks and commenters has been the foreign bank has consented to the proposed requirement to provide adequate assurances of establishment of a branch, agency, or commeraccess to information. This standard is intended cial lending company subsidiary primarily to address bank operations in so-called • The financial resources of the foreign bank secrecy jurisdictions—those jurisdictions whose (including the foreign bank's capital position, laws deliberately restrict access to information in projected capital position, profitability, level of an effort to attract offshore banking business. The indebtedness, and future prospects) and the con- standard is not intended to require that the Board dition of any U.S. office of the foreign bank have access to routine customer information. In general, this information would be sought only in • The managerial resources of the foreign those instances in which the Board had reason to bank, including the competence, experience, and believe that U.S. laws—such as the prohibition integrity of the officers and directors; the integagainst money laundering—had been or were berity of the principal shareholders; management's ing violated. In some of the first applications experience and capacity to engage in internaconsidered by the Board's staff, it became clear tional banking; and the record of the foreign bank that requiring information about the secrecy laws and its management of complying with laws and of every jurisdiction in which an applicant or its regulations, and of fulfilling any commitments to, affiliates conducted business could be impractical and any conditions imposed by, the Board in and burdensome on applicants, particularly in the connection with any prior application case of foreign banks with extensive operations • Whether the foreign bank's home country outside their home countries. The Board has supervisor and the home country supervisor of refined its information requirements to include a any parent of the foreign bank share with other materiality test. This test will require an applicant supervisory authorities material information re- to submit information on the secrecy laws only of garding the operations of the foreign bank those jurisdictions in which it or its affiliates conduct material operations, defined as direct or • Whether the foreign bank has provided the indirect activities that, in the aggregate, account Board with adequate assurances that information for 5 percent or more of the consolidated worldwill be made available to the Board on the wide assets of the bank or its ultimate parent. operations or activities of the foreign bank and any of its affiliates that the Board deems necessary to determine and enforce compliance with 16. 12 C.F.R. § 211.24(c). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

8 Federal Reserve Bulletin • January 1993 EXPANDED AUTHORITY OVER A representative office generally operates as REPRESENTATIVE OFFICES a loan production office for a foreign bank; the office may conduct representational and Another major area addressed by the rule is the administrative work on behalf of the bank Board's expanded powers with respect to repre- but no credit or other business decisions sentative offices. Under the FBSEA, the Board may be made at the office or by its personhas for the first time the authority to approve nel.18 establishment of and examine such offices. The interim rule contained a definition of representa- These references to "credit or other business tive office that limited the types of activities such decisions" are best understood as references to offices could conduct to traditional representa- those credit or other business decisions related to tional and administrative functions. In certain banking. cases, these limitations went beyond those in The FBSEA reflects this critical distinction applicable state law, which merely specifies the between banking offices and representative oftypes of activities that a representative office fices by imposing a lower standard for the apmay not conduct. proval of the establishment of representative offices than for the approval of branches and Relationship to State Law agencies that are permitted to conduct a banking business. Accordingly, the FBSEA implicitly re- This definition provoked several comments in- quires the Board to establish guidelines as to cluding the assertion that the Board had no what activities do and do not constitute the authority to supersede state law. In the Board's business of banking. view, the FBSEA requires that all direct U.S. activities of a foreign bank, including those con- Determining Permissible Activities ducted through a representative office, be subject to federal supervision. The IBA defines branches The problem of defining the activities of a repreand agencies in terms of what they are permitted sentative office is further complicated by certain to do, but the statute is silent as to the permissi- provisions of the BHC Act that impose limitable activities of a representative office. Nonethe- tions on the ability of a foreign bank subject to less, the Board believes that determining the that act to conduct nonbanking business through permissible activities of a representative office is a representative office. These limitations raise not solely a function of state law. the issue of whether the permitted activities of a For example, state law clearly could not per- representative office should vary depending on mit a representative office to engage in the busi- whether the foreign bank is or is not subject to ness of banking. The legislative history of the the BHC Act. (A foreign bank that operates a FBSEA states that a representative office may U.S. branch or agency or owns a U.S. bank is not conduct "any banking activities, including subject to the BHC Act, whereas a foreign bank deposit-taking, securities trading, foreign ex- that operates only a representative office is not.) change dealing, and other similar activities."17 The Board has attempted to resolve these No further prohibitions are noted. The legislative issues in a manner that is consistent with the history gives examples of permissible activities letter and purpose of the FBSEA. The rule of representative offices but these examples are provides that any new direct office of a foreign not characterized as all inclusive. For example, bank that is not a branch or agency is subject to the Senate report states that Board approval as a representative office. Existing direct offices that previously did not fall within the definition of representative office are required to register with the Federal Reserve but 17. Comprehensive Deposit Insurance Reform and Taxpayer Protection Act of 1991: Report of the Senate Committee on Banking, Housing, and Urban Affairs, Senate Report 167, 102 Cong. 1 Sess. (GPO, 1991), p. 118. 18. Ibid. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Foreign Bank Supervision Enhancement Act of 1991 9 will not otherwise be required to seek Federal The Board has decided not to make determina- Reserve approval to continue to operate. tions of consolidated supervision on a country-by- All newly approved and existing representa- country basis, but rather for individual banks; tive offices will be permitted to engage in core nonetheless, applicants chartered in the same representational and administrative activities. country may rely on information previously sub- These activities include those traditionally asso- mitted and considered by the Board on consoliciated with representative offices, such as loan dated supervision in that country. Subsequent production. New representative offices will be applicants need only describe the extent to which permitted to engage, on a case-by-case basis, in the supervision system already evaluated applies other nonbanking activities not prohibited by to them and how, if at all, that system has changed state or federal law; existing representative of- since the Board last considered it. The same fices may continue to perform nonbanking activ- approach will be taken with respect to descripities not prohibited by state or federal law. Dur- tions of secrecy laws in particular jurisdictions. ing the next year, the Federal Reserve will The Board, the OCC, and state supervisors will examine representative offices to obtain more continue working toward a common application accurate information on such activities. After form. Until the form is available, the Board will such examinations, if the Federal Reserve de- accept a copy of the state or OCC application as cides that representative offices should not con- an application under the FBSEA. Of course, duct certain nonbanking activities, it will conduct matters addressed in the FBSEA or in the Board's further rulemaking on the issue. rule and not in the state or OCC application will The Board has also established a procedure for need to be handled separately. State and OCC more expedited approval of a representative of- applications and applications to the Board under fice that functions as a regional headquarters the FBSEA will be processed simultaneously. office for a foreign bank with existing banking The Board has received some criticism for operations in the United States. A foreign bank pursuing background checks with other federal wishing to establish this type of representative agencies, primarily because of the lengthy delays office will be required to provide the Board with caused by conducting such checks. The Board prior notice of its intent. If the Board does not believes that checks can provide useful informaobject to the proposal within a prescribed period, tion and that, on occasion, such information can the foreign bank may establish the representative be critical. Accordingly, the Board has deteroffice. The rule also permits the establishment by mined to continue conducting checks on appligeneral consent of representative offices that cants and related parties. Checks will be initiated conduct only limited back office operations. at the beginning of the process to help minimize These provisions also make clear that the Fed- delays. eral Reserve has the authority to examine such In the rule, the Board has indicated that it will offices under its general and specific examination delegate approval of certain applications to the authority. Reserve Banks. Delegation is permitted for subsequent FBSEA applications from a foreign bank that has received an FBSEA approval from the THE APPLICATIONS PROCESS Board when such applications present no significant supervisory issues. The Board anticipates The processing of applications has proved to be that delegated applications could be processed more cumbersome than had been anticipated. more expeditiously than applications requiring Delays have been caused by several factors, Board approval. including the length of time required to conduct background checks of applicants and related parties with other federal agencies. The Board is EXAMINATIONS committed to reducing the delays that are attributable to factors under its control and is taking The rule provides for annual on-site examinaspecific steps in this regard. tions of branches, agencies, and commercial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

10 Federal Reserve Bulletin • January 1993 lending companies by a U.S. banking supervi- efficiently and to minimize the burdens on the sor, as well as coordination of such examina- office examined. The Board may conduct its own tions. Accordingly, each U.S. branch and examination of foreign bank branches and agenagency of a foreign bank will have been exam- cies, alternate its examination with the primary ined in 1992 by either a state or a federal supervisor every other year, rely on the examiregulator and will be examined annually there- nation of the primary supervisor, or participate in after. All representative offices will be exam- a joint examination. The Reserve Banks will try ined by the responsible Reserve Bank in 1993 to avoid duplicating the work of other federal or and regularly thereafter. state examiners if a branch or agency is subject In implementing its coordinated examination to more than one on-site examination in a twelveprogram for foreign banks, the Board has applied month period. When possible, a joint report will a flexible approach designed to use resources be issued on a joint examination. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

11 Treasury and Federal Reserve Foreign Exchange Operations This quarterly report, covering the period August rities denominated in German marks and in other through October 1992, provides information on currencies thought to be closely linked to the mark. Treasury and System foreign exchange operations. They also made it attractive for U.S.-based entities It was presented by William J. McDonough, Execu- that were building up foreign currency receivables tive Vice President of the Federal Reserve Bank of to postpone the repatriation of these funds to bene- New York and Manager of the System Open Market fit from higher interest rates overseas and, perhaps, Account.1 from a continued depreciation of dollar exchange rates. The August-October period was marked by serious For many market participants, however, the dolstrains in European exchange rate relationships and lar's position in the exchange market carried a shifting market views about the outlook for interest two-sided risk. On the one hand, the fact that the rates in the major countries. Although the dollar dollar was already trading relatively close to the briefly reached all-time lows against the mark and historical low reached in 1991 against the German yen in September, it closed the period up on bal- currency gave rise to fears that if selling pressures ance 4.5 percent against the German mark, down against the dollar became intense enough to break about 3.0 percent against the Japanese yen, and up through this level, the dollar's decline might gain 6.8 percent on a trade-weighted basis.2 significant momentum. On the other hand, market The U.S. monetary authorities intervened in the participants were still mindful of the experience the exchange markets in two episodes during August in previous month, when the authorities of the United their only operations during the period. Entering States and other industrialized countries intervened the market on a total of four days that month, they to buy dollars, triggering a sharp short-covering sought to counter persistent downward pressure on rally. the dollar by buying $1.1 billion against the Ger- Under these circumstances, market participants man mark in amounts shared equally by the U.S. were particularly sensitive to indications either that Treasury and the Federal Reserve. the interest differentials might widen further— thereby putting renewed selling pressure on dollar rates—or that the authorities might again intervene. DOLLAR DECLINES AGAINST THE MARK IN The economic data for the United States released RESPONSE TO INTEREST RATE PRESSURES I early in August gave no clear indication of serious further deterioration, but neither did they offer Interest rate considerations were the dominant fac- assurance of a sustained upswing. The Federal tor in exchange rate movements during the period. Reserve had eased monetary policy in early July, Interest rate differentials provided a strong incen- and markets expected further ease in the absence of tive for capital flows into the higher-yielding secu- a stronger recovery. Meanwhile, in the face of rapid monetary growth in Germany, the Bundesbank had tightened monetary policy in mid-July. But above-target money growth continued, and it 1. The charts for the report are available from Publications was thought that the Bundesbank would keep mon- Services, Board of Governors of the Federal Reserve System, mail stop 138, Washington, DC 20551. etary policy firm—perhaps even tighten policy 2. The dollar's movements on a trade-weighted basis are mea- once more—despite data suggesting that the Gersured using an index developed by the staff of the Board of man economy might be beginning to slow. Governors of the Federal Reserve System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

12 Federal Reserve Bulletin • January 1993 Market participants looked to the release of ish markka and Swedish krone. During the lengthy monthly U.S. labor force data early in August to negotiations among European Community coungive direction to dollar rates. They expected that if tries on European Monetary Union that had led up the data proved to be weaker than expected, the to the December 1991 Maastricht Treaty, market Federal Reserve would soon ease pressures on participants had become impressed by the particibank reserves. When the data, released on Friday, pating governments' evident commitment to August 7, appeared to confirm economic weakness, exchange rate stability. Although the treaty did not the dollar showed some initial resistance but then provide for fixed exchange rates within the system came on offer later that same day, and the U.S. for several more years, market participants came to authorities intervened to stabilize the dollar. When assume that few of these governments would counpressures re-emerged the following Tuesday, the tenance devaluation in the interim. As a result, U.S. authorities again intervened in an operation investors felt increasingly secure holding securities joined by other central banks. Over the two days, denominated in ERM currencies other than the the U.S. authorities bought a total of $600 million mark. Investors purchasing assets that carried even against the German mark. The interventions higher yields than DM-denominated assets apblunted selling pressures somewhat, but the opera- peared to give little weight to exchange rate risk in tions did not interrupt the tendency of the dollar to ex ante calculations of risk-adjusted returns. Durdecline. ing the long interval since the last general ERM By late August, the German mark was strength- realignment in 1987, the total amount of assets ening not only against the dollar but also against allocated on the basis of this view reached substanother European currencies in response to strains tial sums. that were to become far more intense later in the Doubts had begun to develop as to the durability period. As the dollar again approached its 1991 of existing exchange rate relationships and the low, the U.S. authorities intervened on August 21 effectiveness of efforts to achieve greater economic and 24, in cooperation with other monetary author- convergence within Europe after Danish voters ities, buying a total of $500 million. But when rejected a referendum on the Maastricht Treaty in these operations did not appear to discourage the June. In mid-August, reports began to spread that bidding for marks, the U.S. authorities refrained voters in France might also vote "no" on a referenfrom further intervention. dum on the Maastricht Treaty, and pressures on The dollar continued to ease, establishing a new exchange rates within Europe intensified. In the historic low against the mark of DM1.3862 on ensuing weeks, an exchange crisis swept through September 2. But trading conditions for the dollar the EMS and related currencies that entailed interwere relatively orderly, even in the face of the ventions of unprecedented size, large changes in disappointing labor market statistics released in interest rate differentials within Europe, a small cut early September and the continuing market expec- in German official interest rates, two realignments, tations of declining U.S. interest rates, which the suspension of the pound sterling and the Italian appeared to be confirmed by Federal Reserve oper- lira from the ERM. The French franc came under ations on September 4 that eased conditions in the selling pressure but stabilized amid intervention federal funds market. purchases of francs and a rise in French interest rates. Outside the EMS, severe pressures had developed on the Nordic currencies, resulting in EUROPEAN CURRENCIES FACE SEVERE sizable interventions and considerable increases in PRESSURES short-term interest rates, particularly in Sweden. The Finnish markka's peg to the ECU was also suspended. By late August and during most of September, market attention focused on pressures within the Although dollar exchange rates responded at exchange rate mechanism (ERM) of the European times to pressures among European currencies in Monetary System (EMS) and between the EMS September, the dollar was not the focal point of and those currencies linked to it through the Euro- market attention at that time. It initially encounpean currency unit (ECU)—for example, the Finn- tered selling pressure against the mark as investors Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Treasury and Federal Reserve Foreign Exchange Operations 13 1. Federal Reserve reciprocal currency arrangements yen then appreciated during September. This move Millions of dollars reflected some repatriation of capital by Japanese companies with the approach of the fiscal Amount of Institution facility, half-year-end on September 30, a reaction to a October 31, 1992 rebound in the Japanese equity market, and some Austrian National Bank 250 flows into yen-denominated assets in response to National Bank of Belgium 1,000 Bank of Canada 2,000 the developments taking place in the EMS. The National Bank of Denmark 250 Bank of England 3,000 dollar gradually declined against the yen through Bank of France 2,000 September, setting a new historic low against that Deutsche Bundesbank 6,000 Bank of Italy 3,000 currency of ¥118.60 on September 30. Bank of Japan 5,000 Bank of Mexico 700 Netherlands Bank 500 Bank of Norway 250 Bank of Sweden 300 MARKET TENSIONS SUBSIDE Swiss National Bank 4,000 DURING OCTOBER Bank for International Settlements Dollars against Swiss francs 600 Early in October, the pressures in the EMS started Dollars against other authorized European currencies 1,250 to wane. After the British and Italian governments Total 3300,,110000 had chosen to suspend their currencies' participation in the ERM, the pound and the lira depreciated to trade well below their previous ERM floors. sought to cover their intra-European exposures by These and other changes in exchange rates in buying marks. Then, in mid-September, the dollar Europe led to an effective appreciation of the Gersnapped up rather quickly against the mark when man mark. The Bundesbank lowered both of its dollar-based investors and U.S. entities sought official interest rates in mid-September, and money refuge from the European tensions by converting market rates also subsequently eased. Although foreign currency investments or balances into dolmarket participants remained uncertain about the lars. As the European intervention was being conoutlook for monetary union and the eventual conducted in European currencies—mostly in German figuration of the EMS, funds started to flow back to marks—the financial intermediaries effecting these France and short-term interest rates in most of the transactions sold marks in the market to get EMS countries were lowered from the crisis levels dollars demanded by their customers. Once the reached the previous month. As market participants pressures began to subside late in September, the noted that the slowdown in European economic dollar began to drift down toward the levels of late activity was increasingly evident, they came to August. believe that the trend of interest rates abroad might turn supportive of the dollar. DEVELOPMENTS IN THE DOLLAR-YEN EXCHANGE RATE 2. Net profits or losses (-) on U.S. Treasury and Federal Reserve The movements of the dollar against the yen during foreign exchange operations1 August and September were, in contrast to those Millions of dollars against the European currencies, relatively muted. U.S. Treasury The interest differentials between the United States Period and item Federal Exchange Reserve Stabilization and Japan were narrower, and market participants Fund believed that the authorities in Japan, like their Valuation profits and losses on counterparts in the United States, would be tending outstanding assets and liabilities as of July 31, 1992 4,536.7 2,503.9 to ease monetary conditions. The dollar reached its Realized, July 31-October 31, 1992 . 358.1 119.9 high for the period of ¥128.19 on August 10 as Valuation profits and losses evidence mounted that the slowdown in the Japa- on outstanding assets and liabilities as of nese economy was intensifying and as the Japanese October 31, 1992 3,746.3 2,293.8 equity market showed persistent weakness. But the 1. Data are on a value-date basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

14 Federal Reserve Bulletin • January 1993 Meanwhile, in the United States expectations • On September 8, the Federal Reserve agreed to diminished that monetary policy would continue to purchase $400 million against German marks in an be eased. The labor market data for September, off-market transaction at the request of a foreign released in early October, were seen as insuffi- monetary authority. ciently weak to trigger a policy reaction. As the month progressed, talk spread that a fiscal stimulus The Federal Reserve realized profits of package would be introduced early in the next year. $358.1 million, including $230.3 million from off- Under these circumstances, the outlook for interest market transactions that settled during the Augustdifferentials became more favorable to the dollar. October period. The Treasury realized profits of As some of the leads and lags that had built up $119.9 million, which included $33.5 million from against the dollar earlier in the year are now being off-market transactions that settled during the same reversed, the dollar recovered substantially against three-month period. Cumulative bookkeeping or the mark and to a lesser extent against the yen in valuation gains on outstanding foreign currency fairly active trading through the rest of October. balances were $3,746.3 million for the Federal Reserve and $2,293.8 million for the Treasury's ESF. These valuation gains represent the increase OTHER OPERATIONS in dollar value of outstanding currency assets valued at end-of-period exchange rates, compared In other activity, a total of $1,873.1 million in with rates prevailing at the time the foreign currenoff-market spot and forward foreign currency sales, cies were acquired. executed by the U.S. monetary authorities, settled The Federal Reserve and the ESF regularly during the period. invest their foreign currency balances in a variety of instruments that yield market-related rates of • Forward purchases of $740.1 million and return and that have a high degree of quality and $733.0 million against German marks from the liquidity. A portion of the balances is invested in Deutsche Bundesbank settled on August 21 and securities issued by foreign governments. As of the October 21 respectively. These mark sales consti- end of October, holdings of such securities by the tuted a portion of the original $6,176.6 million of Federal Reserve amounted to the equivalent of spot and forward transactions initiated in May. As $8,146.1 million, and holdings by the Treasury previously reported, 60 percent of each transaction amounted to the equivalent of $8,666.9 million was executed for the Federal Reserve and 40 per- valued at end-of-period exchange rates. • cent was executed for the Exchange Stabilization Fund (ESF) account. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

15 Industrial Production and Capacity Utilization Released for publication November 16 average, total industrial production in October was 0.6 percent above its year-ago level. Total indus- Industrial production increased 0.3 percent in Octo- trial capacity utilization edged up 0.1 percent in ber after having fallen 0.2 percent in September. October, to 78.5 percent. Much of the October gain reflected a significant When analyzed by market group, the data show hike in light truck assemblies; excluding motor that the output of consumer goods grew 0.5 percent vehicles and parts, production increased only in October, while the production of business equip- 0.1 percent. At 109.0 percent of its 1987 annual ment picked up 1.1 percent; both were buoyed by Industrial production indexes Twelve-month percent change Twelve-month percent change Capacity and industrial production Ratio scale, 1987 production = 100 Ratio scale, 1987 production =100 90 80 70 1980 1982 1984 1986 1988 1990 1992 1980 1982 1984 1986 1988 1990 1992 All series are seasonally adjusted. Latest series, October. Capacity is an index of potential industrial production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

16 Federal Reserve Bulletin • January 1993 Industrial production and capacity utilization Industrial production, index, 1987 = 100' Percentage change Category 1992 19922 Oct. 1991 to Julyr Aug. Sept. Oct.p July' Aug.r Sept.r Oct.p Oct. 1992 Total 109.4 109.0 108.7 109.0 -3 -.2 Previous estimate 109.3 108.9 108.6 -.4 -.2 Major market groups Products, total 109.6 109.6 109.4 109.9 .5 .0 -.2 .5 Consumer goods ... 110.4 110.4 110.3 110.8 .7 .0 -.1 .5 1.1 Business equipment 124.4 125.5 125.4 126.7 .2 .9 -.1 1.1 3.6 Construction supplies 98.6 98.4 97.0 97.0 1.4 -.2 -1.5 .0 1.8 Materials 109.0 108.0 107.7 107.7 1.3 -.9 -.3 .0 .2 Major industry groups Manufacturing 110.2 109.9 109.5 109.9 .6 -.3 -.4 .3 Durable 109.0 109.0 108.1 108.8 .5 .0 -.9 .7 .6 Nondurable 111.7 111.1 111.2 111.2 .7 -.6 .2 .0 1.0 Mining 100.6 98.8 97.7 98.1 2.6 -1.8 -1.1 .5 -2.5 Utilities 109.3 109.1 111.2 110.7 2.4 -.2 2.0 -.5 1.2 Capacity utilization, percent MMMEEEMMMOOO CCCaaapppaaaccciiitttyyy,,, pppeeerrr--ccceeennntttaaagggeee 1991 1992 ccchhhaaannngggeee,,, AAvveerraaggee,, LLooww,, HHiigghh,, OOOcccttt... 111999999111 11996677--9911 11998822 11998888--8899 tttooo Oct. July' Aug.' Sept.' Oct.P OOOcccttt... 111999999222 Total 82.1 71.8 85.0 79.8 79.1 78.7 78.4 78.5 2.2 Manufacturing 81.4 70.0 85.1 78.7 78.1 77.8 77.3 77.4 2.4 Advanced processing 81.0 71.4 83.6 77.6 76.2 76.2 75.7 75.9 2.9 Primary processing .. 82.3 66.8 89.0 81.4 82.7 81.6 81.2 81.2 1.2 Mining 87.4 80.6 87.2 87.9 87.6 86.1 85.1 85.5 .1 Utilities 86.7 76.2 92.3 84.8 84.1 83.8 85.4 84.9 1.0 1. Seasonally adjusted. r Revised, 2. Change from preceding month. p Preliminary. the gain in light trucks. The output of durable were all unchanged in October. Materials for both consumer goods other than automotive products durable and nondurable goods edged up in October, decreased 0.2 percent, with a decline in appliance after having declined, on balance, in August and production partly offset by increases elsewhere. September; energy materials fell, as the output The output of nondurable consumer goods edged from coal mines and utilities decreased. up 0.1 percent; the output of gasoline increased, When analyzed by industry group, data show but the production of clothing declined. that manufacturing output increased 0.3 percent in The production of business equipment rose October; the factory operating rate advanced sharply in October, a move reflecting primarily the 0.1 percentage point, to 77.4 percent. The producstrength in trucks and a continuation of the strong tion of durables rose 0.7 percent, nearly retracing upward trend in the output of information- its September decline, while the production of nonprocessing equipment, especially computers. In ad- durables was unchanged. The increase in durables dition, the production of industrial equipment rose in October resulted mainly from gains in light in October, although the level of output was still trucks, furniture, and nonelectrical machinery. below that of around midyear. The index for de- Despite this improvement, the output of durable fense and space equipment fell 1 percent in Octo- goods has changed little since May, after having ber, continuing the steady decline it has shown increased steadily earlier in the year. Growth in the since late 1990. The production of construction output of nondurable goods has also slowed since supplies, business supplies, and industrial materials spring. Chemicals, rubber and plastic products, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization 17 textiles have been the major contributors to this increased, as most platforms in the Gulf of Mexico deceleration; the output of these industries grew came back on line after having been disrupted by steadily in the first part of the year but plateaued by Hurricane Andrew in late August. The drilling of early summer. oil and gas wells also increased in October, but coal The output in the mining industry picked up mining fell again. Utilities output dropped back a 0.5 percent in October. Natural gas production bit after its September gain. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

18 Announcements AMENDMENT TO REGULATION C Total revenue is projected to be $784.2 million, resulting in a 101.4 percent recovery rate. The fees for 1993 are based on total costs, including the The Federal Reserve Board issued on Novem- PSAF, and a portion of special project costs. ber 25, 1992, an amendment to its Regulation C At the same time, the Board approved the 1993 (Home Mortgage Disclosure) that will expand the PSAF for Reserve Bank priced services of regulation's coverage of mortgage companies. $91.4 million, an increase of $11.5 million or The rule will require a mortgage company with 14.4 percent from the $79.9 million targeted for an office in a metropolitan area to disclose data 1992. about home lending activity if its assets exceeded $10 million or if the company made 100 or more home purchase loans in the preceding calendar INCREASE IN THE NET TRANSACTION year. ACCOUNTS TO WHICH A 3 PERCENT The new rule carries out a provision in the Fed- RESERVE REQUIREMENT WILL APPLY eral Deposit Insurance Corporation Improvement Act authorizing the Board to set a small-institution The Federal Reserve Board announced on Novemexemption standard for mortgage companies that ber 24, 1992, an increase from $42.2 million to is comparable to the exemption for depository $46.8 million in the net transaction accounts to institutions. which a 3 percent reserve requirement will apply in 1993. The Board also changed from $3.6 million to FEE SCHEDULES IN 1993 $3.8 million the amount of reservable liabilities of FOR SERVICES PROVIDED each depository institution that is subject to a BY THE FEDERAL RESERVE BANKS reserve requirement of 0 percent. Additionally, the Board maintained at $44.8 mil- The Federal Reserve Board announced on Novem- lion the deposit cutoff level that is used in conber 10, 1992, the 1993 fee schedules for services junction with the exemption amount for reservable provided by the Reserve Banks. The fees became liabilities to determine the frequency of deposit effective January 1, 1993. reporting. The fee schedules apply to check collection, automated clearinghouse services, funds transfer and net settlement, book-entry securities, defini- PROPOSED ACTION tive safekeeping, noncash collection, special cash services, and electronic connections to the Federal The Federal Reserve Board on December 1, 1992, Reserve. The 1993 fee schedules are available from issued for public comment proposed revisions to its the Reserve Banks. staff commentary for Regulation Z (Truth in Lend- In 1993, total costs for priced services, including ing). Comments are requested by January 29,1993. float and the private sector adjustment factor (PSAF), are projected to be $773.3 million. The PSAF is an allowance for taxes that would have CHANGES IN BOARD STAFF been paid and the return on capital that would have been provided had the Federal Reserve's priced The Board of Governors announced on Novemservices been furnished by a private business firm. ber 19, 1992, the restructuring of the Division of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

19 Consumer and Community Affairs. The new align- Affairs. In 1986, she became Assistant to the Direcment is designed to meet the increased responsibil- tor with responsibility for consumer education, ities associated with the passage of the Truth in information systems, special projects, and adminis- Savings Act, as well as deal with the upsurge in the tration. Under the realignment, along with her curdivision's work that has expanded the scope, vol- rent duties, Ms. English will oversee the Consumer ume, and complexity of the Federal Reserve's con- Complaint Section. She holds a B.A. from Trinity sumer and community affairs activities. As a result College in Washington, D.C., and a J.D. from the of the restructuring, the Board announced the fol- Georgetown University Law Center. lowing official staff promotions and appointments: Ms. McNulty joined the Board's staff in 1981 as the promotions of Glenn E. Loney and Dolores S. a Review Examiner. In 1986, she was promoted to Smith to the position of Associate Director, and a Program Manager in the Compliance Section. As the appointments of Maureen R English and Assistant Director for Compliance, she will super- Irene Shawn McNulty to the position of Assistant vise the newly established Reserve Bank Oversight Director. Section and the Applications Section. Ms. McNulty Ms. English joined the Board in 1976 as an holds a B.B.A. degree from Southern Methodist attorney in the Office of Saver and Consumer University. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

20 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON OCTOBER 6, 1992 little changed in August after increasing appreciably in the two previous months; for July and The information reviewed at this meeting sug- August combined, spending was moderately higher gested that economic activity was expanding at a than in the second quarter. In August, outlays for subdued pace. Domestic final sales appeared to services continued to rise, while expenditures for have picked up in the third quarter, led by an most major categories of goods declined. Housing increase in consumer spending and another sharp starts climbed in August, with starts of singlegain in business purchases of office and computing family homes reaching their highest level since equipment, but demand had remained sluggish in March. By contrast, permit issuance and sales of most other sectors of the economy. The limited new and existing homes edged lower in August. growth in overall demand was being met in part Shipments of nondefense capital goods slowed through higher imports, and as a consequence, considerably in July and August, retracing much of industrial production and employment had been the sharp gain recorded in June. Shipments of weak. Recent data on wages and prices continued office and computing equipment slackened on balto suggest that inflation was slowing. ance over the two months; however, after adjusting Total nonfarm payroll employment fell some- for ongoing rapid declines in prices, the underlying what further in September, reflecting a drop in upward trend in demand for such equipment government jobs associated with the end of a feder- remained robust. Recent data on orders and shipally funded summer jobs program. Employment in ments of nondefense capital goods suggested that the private sector was up in September, as new business outlays for durable equipment, particuhiring in the services industry more than offset job larly for items other than computers, would grow losses in manufacturing and construction; employ- more slowly in coming months. Outlays for nonresment in other industries was little changed after a idential construction contracted again in August, sizable decline in August. The civilian unemploy- with steep decreases occurring for commercial and ment rate edged down to 7.5 percent in September industrial structures. Data on contracts continued to when the labor force registered another decrease. indicate that spending for new construction would After a considerable gain in July, industrial pro- remain sluggish over the months ahead. duction declined appreciably in August, and avail- Total business inventories rose somewhat further able information suggested further weakness in in July following a large increase in June. In manu- September. The decline in industrial output since facturing, inventory stocks were little changed over July partly reflected the disruptive effects of Hurri- June and July but were up sharply in August as cane Andrew on oil and gas production and of a factory shipments of goods slowed; as a result, the labor strike on the manufacture of automobiles and ratio of inventories to shipments for all manufacturparts. However, output of a broad range of other ing rebounded to the middle of the range that had goods also was down. One area of continuing prevailed over the previous year. At the wholesale strength was the production of business equipment, level, inventories were trimmed a little in July after notably office and computing equipment. The utili- a sizable rise in June, and the stocks-to-shipments zation of total industrial capacity fell on balance ratio remained relatively high. Retail trade inventoover July and August, retracing a portion of the ries expanded at a considerable pace in July, but a increase that occurred over the first half of the year. rebound in sales lowered the inventory-to-sales ratio somewhat at most types of stores. Real personal consumption expenditures were Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

21 The nominal U.S. merchandise trade deficit wid- tions. In early September, operations were adjusted ened somewhat in July from its average rate in the to implement some easing in reserve pressures. second quarter. Imports, particularly of capital This action was taken in response to incoming goods and consumer goods, remained on the fairly information that suggested unexpected sluggishstrong upward path evident during the first half of ness in economic activity and a smaller-thanthe year. Exports increased by a smaller amount in anticipated pickup in the growth of the broad July; exports of agricultural products rose notice- monetary aggregates. Adjustment plus seasonal ably, but exports of nonagricultural goods were borrowing tended to run a little above expected about unchanged from the pace of the previous levels during the intermeeting interval, reflecting three quarters. Recent indicators of economic activ- in part reserve shortfalls that produced sharp ity in the major foreign industrial countries sug- increases in borrowing at the end of two reserve gested a continuation of sluggish growth on aver- maintenance periods. The reserve shortfalls along age in those countries. with quarter-end pressures contributed to a some- Producer prices of finished goods edged up in what higher federal funds rate than had been August in association with a rebound in prices of expected following the monetary easing action. fresh fruits and vegetables. Abstracting from the Other short-term interest rates also declined volatile food and energy components, the increase somewhat, while longer-term rates were about in prices of other finished goods over the twelve unchanged since the Committee meeting on months ended in August was considerably smaller August 18. Short-term debt markets reacted to the than the rise over the previous twelve-month Committee's easing action in early September and period. At the consumer level, prices of nonfood, subsequently to growing expectations of further non-energy items registered another modest in- System easing in the context of continued indicacrease, and the twelve-month change in this mea- tions of a sluggish economic expansion. Yields on sure also was down substantially from a year intermediate-term securities also fell. However, earlier. In September, a drop in the average hourly rates on long-term obligations were little changed earnings of production or nonsupervisory workers on balance; the System's policy easing and generretraced part of a sizable rise in August. Over the ally weak economic data tended to reduce bond twelve months ended in September, these earnings yields, but long-term debt markets also appeared to grew at a significantly slower rate than in the reflect growing concerns about the fiscal outlook preceding twelve-month period. and increased uncertainty stemming in part from At its meeting on August 18, the Committee volatility in the foreign exchange markets and poladopted a directive that called for maintaining the icy developments abroad. existing degree of pressure on reserve positions and In foreign exchange markets, the trade-weighted that included a bias toward possible easing during value of the dollar in terms of the other G-10 the intermeeting period. Accordingly, the directive currencies fluctuated widely over the intermeeting indicated that in the context of the Committee's period but ended somewhat higher on balance. The long-run objectives for price stability and sustain- dollar weakened considerably early in the period able economic growth, and giving careful consider- on disappointing reports about the U.S. economy ation to economic, financial, and monetary devel- and related expectations of Federal Reserve easing. opments, slightly greater reserve restraint might be In mid-September, the dollar moved sharply higher acceptable or slightly lesser reserve restraint would as turmoil in European currency markets prompted be acceptable during the intermeeting period. The some safe-haven buying of dollars and resulted in contemplated reserve conditions were expected to interest rate reductions in Germany. More recently, be consistent with growth in M2 and M3 at annual reduced tensions within the European Monetary rates of about 2 percent and Vi percent respectively System and heightened expectations of further over the six-month period from June through easing by the Federal Reserve induced renewed December. declines in the dollar. Open market operations during the intermeeting Expansion of M2 and M3 resumed in August, period were directed initially toward maintaining though at fairly slow rates, and limited growth the existing degree of pressure on reserve posi- appeared to have continued in September. Through Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

22 Federal Reserve Bulletin • January 1993 September, both aggregates were estimated to have to provide much impetus to business activity, and grown at rates somewhat below the lower ends of the timing of the acceleration from the presently the ranges established by the Committee for the sluggish advance remained uncertain. Nonetheless, year. The pickup in the broad aggregates seemed to declines over the third quarter in the foreign reflect the cumulative effects on demand deposits exchange value of the dollar and in domestic interand liquid retail deposits of declines in market est rates—the latter along the entire maturity interest rates since midyear and a related drop in spectrum—suggested improved conditions for opportunity costs. Currency growth strengthened greater expansion. Recently, these more favorable further in August and September, evidently owing conditions had been reflected in an upturn in money in part to further foreign demand. Bank credit growth and bank lending activity. With regard to growth also picked up in both months in conjunc- the outlook for inflation, the available statistics and tion with an upturn in bank loans. anecdotal information continued to indicate appre- The staff projection prepared for this meeting ciable progress toward the goal of price stability. indicated that economic activity would expand at a In the course of the Committee's discussion, the slow pace in the current quarter and that growth members gave a great deal of emphasis to the would pick up gradually in 1993 to a rate that uncertainties that surrounded the economic outwould remain quite moderate by past cyclical stan- look, including potential developments abroad. dards. The declines that had occurred in interest Several members commented that against the backrates were expected to boost housing activity to ground of a relatively weak expansion, the recent some extent, particularly in the single-family sec- volatility in some domestic financial markets and in tor. Gains in expenditures for equipment were pro- the foreign exchange market tended to underscore jected to be large enough to raise business fixed the risks of developments that could have adverse investment despite sluggish spending for nonresi- effects on the economy. Another key uncertainty dential construction. As employment growth was related to the ongoing restructuring of business restored and further improvements in household firms and of business and consumer balance sheets. balance sheets were achieved, consumer spending Those activities were continuing to divert financial would strengthen. The projection pointed to some flows from spending to savings or debt reduction, decline in federal government purchases, reflecting and prior experience provided little basis for deterfurther cutbacks in defense expenditures, and weak mining when such restructuring might come closer spending by state and local governments. The per- to being completed and flows of funds redirected sisting slack in resource utilization in this forecast on balance into more normal spending channels. was projected to be associated with additional Nonetheless, the members drew considerable progress in reducing inflation. encouragement from the substantial progress that In the Committee discussion of current and pro- already had been made by business firms in spective economic developments, many of the improving their balance sheets and by many lendmembers expressed disappointment and concern ers, notably banking institutions. While some banks about the sluggish pace of the expansion, and a clearly were continuing to experience financial difnumber commented that the softening in several ficulties, many had pared their problem assets and recent business indicators could portend quite slow strengthened their capital positions. Moreover, a economic growth over the months immediately growing number of reports suggested that banks ahead. Business and consumer sentiment was rela- were intensifying their efforts to find creditworthy tively depressed and seemed to have worsened a bit borrowers, though when such efforts might become further recently in some parts of the country. While more general was another source of uncertainty. further deterioration in business activity culminat- Consumer spending seemed to have been reasoning in an economic downturn could not be ruled ably well maintained in most parts of the country, out, some of the very latest data had a slightly more including indications of some growth in a number positive tone, and the members generally continued of areas where overall business activity appeared to to view somewhat stronger economic growth as a be moving sideways or even edging lower. At least reasonable prospect for the year ahead. However, in some parts of the country, retailers were expressno important sector of the economy seemed poised ing moderate optimism with regard to their pro- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee 23 spective sales during the upcoming holiday season. in many parts of the country. At the state and local Even so, very cautious consumer attitudes, associ- government levels, severe fiscal problems probably ated especially with concerns about employment would continue to curb spending and force many prospects, seemed likely to restrain overall growth jurisdictions to raise taxes so long as a relatively in consumer spending over the next several months. weak economy continued to hold down revenues. Indeed, barring unanticipated economic develop- With regard to the outlook for inflation, the ments leading to a major strengthening in employ- members were encouraged by the further indicament opportunities, continuing efforts by many tions of a disinflationary trend in prices and wages, households to improve their financial positions and they saw little likelihood that upward pressures could be expected in the context of an already low on prices would emerge over the next year or two, saving rate to limit the contribution of the con- even in the context of some pickup in the expansumer sector to faster economic growth for some sion of economic activity. While medical, tuition, considerable period. and some other costs were rising at relatively rapid In their comments about developments in other rates, members cited widespread examples of very key sectors of the economy, members also cited strong competitive pressures in markets for goods, single-family housing construction as a source of including key agricultural products, and ongoing some stimulus in many regions. The manufacturing efforts by firms to cut costs in the face of steady or of related building materials had exhibited a corre- even declining prices in the markets for their prodsponding pickup recently. Other construction activ- ucts. Nonetheless, business contacts still seemed to ity, notably that of office structures, remained weak, anticipate rising inflation at some point for the but there were reports of some improvement or economy generally if not in their own industries, continuing growth in the construction of industrial and long-term interest rates still appeared to facilities and public works projects in some parts of embody higher rates of inflation. the country. In the energy sector, a firming of gas In the Committee's discussion of policy for the prices was encouraging somewhat greater produc- intermeeting period ahead, the members generally tion. On balance, there was little current evidence agreed that current uncertainties made an assessthat construction, other than in the single-family ment of the economic outlook and the determinasector, would provide significant impetus to the tion of an appropriate course for monetary policy overall expansion in the year ahead. Likewise, flag- particularly difficult. While the members' preferging demand was curtailing the production of air- ences for policy implementation ranged from the craft and inducing at least temporary cutbacks in maintenance of unchanged reserve conditions to an auto assemblies. In addition, the foreign trade sec- immediate easing move, a majority indicated that tor was not expected to add significantly to they could support a policy prescription of maindemands on the U.S. economy despite the decline taining unchanged reserve conditions for the in the foreign exchange value of the dollar. While present while biasing the directive strongly toward the latter had fostered large increases in tourism possible easing during the intermeeting period. from abroad in a number of areas and some domes- Members who favored an unchanged policy tic producers reportedly were gaining market share, stance argued that despite the softness in a number recessions or weak expansion in major foreign of recent economic indicators they could see no trading nations were likely to limit the growth in currently persuasive evidence of a cumulative deteforeign demand for U.S. goods. rioration in the economy. Moreover, earlier mone- The fiscal outlook remained uncertain. The large tary policy easing actions had provided a substanfederal deficit was still tending to preclude the tial amount of stimulus to the economy that would adoption of spending or tax reduction programs continue to exert its effects over time. Real shortthat would increase fiscal stimulus, but some mem- term interest rates were at very low levels, and bers suggested that continued sluggishness in the intermediate-term rates had declined considerably economy might well overcome current inhibitions since midyear. The reductions in interest rates had against new initiatives. In any event, defense greatly facilitated the progress already achieved by spending was on a clear downtrend and was exert- business firms and households in restructuring their ing an adverse effect on overall economic activity debts and reducing their debt service burdens, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

24 Federal Reserve Bulletin • January 1993 thereby strengthening the financial underpinnings including some who favored an immediate easing of the economy. The dollar recently had been of policy, expressed some discomfort about the subject to considerable volatility in the foreign extent to which the Committee might be seen as exchange markets, and there was some risk that an reacting to individual pieces of incoming data easing of monetary policy at this time might tend to rather than to an accumulation of information and destabilize it. These members concluded that the analysis regarding the course of the economy and present stance of monetary policy continued to prices. reflect an appropriate balancing of the need to In the course of the discussion, members comsustain progress toward price stability while en- mented that the pickup in the growth of the broad couraging an acceptable rate of economic growth. monetary aggregates in August and September was Members who favored an immediate easing of a reassuring development, even though the rates of policy believed that the outlook for the economy expansion were still quite sluggish. According to a and prices argued for a policy move at this time. staff analysis prepared for this meeting, the growth These members acknowledged that a good deal of of both aggregates was likely to remain quite limuncertainty surrounded the economic outlook. ited over the balance of the year and to fall some- However, there were some risks that an already what short of the lower bounds of the Committee's sluggish economy might weaken further. In the ranges for 1992 as a whole. Despite the lingering circumstances, a prompt easing move would be a effects of earlier declines in short-term interest desirable and prudent course, particularly in a situ- rates, the projected expansion of M2 and especially ation in which they saw a minimal risk that infla- that of M3 would be expected to remain below the tion would be deflected from its downward trend. growth of nominal GDP, and the velocity of these In the view of some of these members, continued monetary aggregates would continue to display expansion in the broad monetary aggregates at unusual strength in comparison with past patterns. rates below the Committee's ranges suggested that The persistence of slow growth in the broader financial conditions were not yet conducive to a aggregates probably would involve further pickup in business activity that was sufficiently decreases in deposit offering rates and shifts of robust to reduce margins of underutilized re- funds to higher-yielding alternatives such as bond sources. An easing in monetary policy seemed to and stock mutual funds, with little effect on conbe widely anticipated in financial markets, and a sumer spending or overall economic activity. The failure to take action at this time might well result members nonetheless recognized the need to assure in an undesirable backup in market interest rates, adequate monetary expansion for a growing econthus further weakening the outlook. omy and noted that money growth appreciably A majority of the members noted that they could below current expectations would be a matter of support an unchanged directive that included a increasing concern. A differing view focused on decided presumption of some easing if indications the growth of Ml and reserves, which had been of stronger economic activity failed to emerge or very rapid since the latter months of 1991. In this the recent firming in money and credit flows view, the outsized growth in narrow measures of showed signs of ebbing materially. It was antici- money was indicative of a quite stimulative monepated that any decision to ease reserve conditions tary policy, but given the long lags that were during this period would be coordinated with the involved, the inflationary consequences of such consideration of a reduction in the discount rate by growth, if allowed to continue, might not become the Board of Governors. Two members felt evident until much later, perhaps not until well into strongly that a directive calling for unchanged 1994. reserve conditions should also provide for an At the conclusion of the Committee's discussion, unbiased intermeeting instruction. While such a a majority of the members indicated their accepdirective would not rule out an intermeeting tance of a directive that called for maintaining the adjustment—in either direction—it would require existing degree of pressure on reserve positions and more substantial evidence of changing or unex- an understanding that there would be a marked bias pected economic or financial information before a toward possible easing during the intermeeting policy action was implemented. Several members, period. Two of the members expressed a strong Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee 25 preference for a symmetric directive with regard to in February for growth of M2 and M3 of 2lh to 6V2 perpossible intermeeting policy adjustments, while cent and 1 to 5 percent respectively, measured from the fourth quarter of 1991 to the fourth quarter of 1992. The two others were firmly persuaded of the desirability Committee anticipated that developments contributing to of an immediate increase in reserve availability to unusual velocity increases could persist in the second strengthen the growth of M2. Accordingly, in the half of the year. The monitoring range for growth of total context of the Committee's long-run objectives for domestic nonfinancial debt also was maintained at 4lA to price stability and sustainable economic growth, 8V2 percent for the year. For 1993, the Committee on a tentative basis set the same ranges as in 1992 for growth and giving careful consideration to economic, of the monetary aggregates and debt measured from the financial, and monetary developments, it was fourth quarter of 1992 to the fourth quarter of 1993. The decided that slightly greater monetary restraint behavior of the monetary aggregates will continue to be might be acceptable or slightly lesser monetary evaluated in the light of progress toward price level restraint would be acceptable during the intermeet- stability, movements in their velocities, and developments in the economy and financial markets. ing period. The reserve conditions contemplated at In the implementation of policy for the immediate this meeting were expected to be consistent with future, the Committee seeks to maintain the existing growth in M2 and M3 at annual rates of about 2 degree of pressure on reserve positions. In the context of and 1 percent respectively over the three-month the Committee's long-run objectives for price stability period from September through December. and sustainable economic growth, and giving careful consideration to economic, financial, and monetary At the conclusion of the meeting, the following developments, slightly greater reserve restraint might or domestic policy directive was issued to the Federal slightly lesser reserve restraint would be acceptable in Reserve Bank of New York: the intermeeting period. The contemplated reserve conditions are expected to be consistent with growth of M2 The information reviewed at this meeting suggests and M3 over the period from September through Decemthat economic activity is expanding at a subdued pace. ber at annual rates of about 2 and 1 percent, respectively. Total nonfarm payroll employment declined somewhat further in September, but the civilian unemployment rate Votes for this action: Chairman Greenspan, Vice edged down to 7.5 percent. Industrial production is esti- Chairman Corrigan, Messrs. Angell, Hoenig, Kelley, mated to have declined appreciably since July. Real Mullins, Ms. Phillips, and Mr. Syron. Votes against personal consumption expenditures appear to have risen this action: Messrs. Jordan, LaWare, Lindsey, and moderately in the third quarter. Data on housing have Melzer. been mixed, but on balance they continue to suggest a gradual uptrend in housing expenditures. Recent data on orders and shipments of nondefense capital goods indi- Messrs. Jordan and Lindsey preferred immediate cate slower growth in outlays for business equipment, action by the Committee to increase the availability while expenditures for nonresidential construction have of bank reserves sufficiently to achieve the Combeen weak. The nominal U.S. merchandise trade deficit widened somewhat in July from its average rate in the mittee's pre-announced target growth for M2 in second quarter. Incoming data on wages and prices sug- 1992. Such reserve provision would likely be assogest that inflation is slowing. ciated with further declines in short-term market Short-term interest rates have declined somewhat, interest rates. They believed that this policy action while longer-term rates are about unchanged since the by the Committee should be accompanied by an Committee meeting on August 18. In foreign exchange announcement of reductions of the upper and lower markets, the trade-weighted value of the dollar in terms of the other G-10 currencies fluctuated widely over the limits of the range for M2 growth in 1993. They intermeeting period but ended the period higher on felt that it was important to make clear that nearbalance. term action to increase M2 expansion was not an Expansion of M2 and M3 resumed in August, though abandonment of the long-term objective of nonat fairly slow rates, and limited growth appears to have inflationary monetary growth. continued in September. Through September both aggregates were estimated to have grown at rates somewhat Messrs. LaWare and Melzer dissented because below the lower ends of the ranges established by the they did not want to bias the directive toward Committee for the year. possible easing during the intermeeting period. In The Federal Open Market Committee seeks monetary their view, a variety of indicators, including the and financial conditions that will foster price stability level of short-term interest rates and the growth of and promote sustainable growth in output. In furtherance of these objectives, the Committee at its meeting on reserves, suggested that monetary policy already June 30-July 1 reaffirmed the ranges it had established was positioned to foster an expansion in economic Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

26 Federal Reserve Bulletin • January 1993 activity consistent with the economy's long-run weakness in economic data and that allowed more potential. Moreover, further easing at this time time for the effects of earlier easing actions to be would incur a substantial risk of destabilizing the felt in the economy. Mr. Melzer also expressed dollar in the foreign exchange markets. In these concern that the progress already made toward circumstances, they favored a steady monetary pol- achieving price stability might be jeopardized if icy that was not disposed to react to near-term very rapid growth in Ml were to continue. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

27 Legal Developments FINAL RULE—AMENDMENT TO REGULATION C (including its caption) and by revising paragraph (c)(1) to read as follows: The Board of Governors is amending 12 C.F.R. Part 203, its Regulation C (Home Mortgage Disclosure Act). The Federal Deposit Insurance Corporation Im- Section 203.3—Exempt institutions. provement Act of 1991 authorized the Board, in consultation with the Department of Housing and Urban Development, to develop a new exemption standard (a) Exemption based on location, asset size, or numfor nondepository mortgage lenders that is comparable ber of home purchase loans. to the exemption for depository institutions. Under the (1) A bank, savings association, or credit union is standard that has been adopted by the Board, a exempt from the requirements of this regulation for nondepository mortgage lender with an office in a a given calendar year if on the preceding Decemmetropolitan area is covered if it meets either an ber 31: asset-size test or a lending activity test. (i) The institution had neither a home office nor a A nondepository mortgage lender continues to be branch office in an MSA; or covered if its assets exceed $10 million. Regardless of (ii) The institution's total assets were $10 million asset size, however, under the final rule a nondeposi- or less. tory mortgage lender is also covered if it originated 100 (2) A for-profit mortgage lending institution (other or more home purchase loans (which includes refi- than a bank, savings association, or credit union) is nancings of home purchase loans) in the preceding exempt from the requirements of this regulation for calendar year. This dual standard maintains coverage a given calendar year if: for all nondepository mortgage lenders that currently (i) The institution had neither a home office nor a report under HMDA and extends coverage to firms branch office in an MSA on the preceding Decemthat are active mortgage lenders despite their smaller ber 31; or asset size. (ii) The institution's total assets combined with The Board also has revised the instructions for those of any parent corporation were $10 million reporting loan applications received through a loan or less on the preceding December 31, and the broker or correspondent to conform the rule for re- institution originated fewer than 100 home purporting loan approvals to the existing rule for reporting chase loans in the preceding calendar year. loan denials. This revision applies to all lenders covered by HMDA, not only nondepository mortgage lenders. Loss of exemption. Effective January 1, 1993, 12 C.F.R. Part 203 is (1) An institution losing an exemption that was amended as follows: based on the criteria set forth in paragraph (a) of this section shall comply with this regulation beginning Part 203—Home Mortgage Disclosure with the calendar year following the year in which it [AmendedJ lost its exemption. * * * 1. The authority citation for part 203 continues to read as follows: 3. Appendix A to part 203 is amended by revising paragraphs I.A. through I.D., by revising paragraph Authority: 12 U.S.C. 2801-2810. IV.A.3, by redesignating paragraph IV.A.4 as IV.A.5, by adding a new paragraph IV.A.4, and by revising 2. Section 203.3 is amended by revising paragraph (a) paragraphs V.B.I, and V.B.2.a. to read as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

28 Federal Reserve Bulletin • January 1993 APPENDIX A TO PART 203—FORM AND D. Other Lending Institutions — Exception. You need INSTRUCTIONS FOR COMPLETION OF HMD A not complete a register — even if you meet the tests LOAN/APPLICATION REGISTER for location and asset size or number of home purchase loans — if your institution is a for-profit mortgage lender (other than a bank, savings association, or credit union) and the home purchase loans that you I. Who Must File a Report originated in the preceding calendar year (including refinancings) came to less than 10 percent of your total A. Depository Institutions. Subject to the exception loan origination volume, measured in dollars. discussed below, banks, savings associations, and credit unions must complete a register listing data about loan applications received, loans originated, and loans purchased if on the preceding December 31 an institution: /V. Types of Loans and Applications Covered 1. Had assets of more than $10 million, and and Excluded by HMD A 2. Had a home or a branch office in a "metropolitan statistical area" or a "primary metropolitan statis- A. Types of Loans and Applications to be Reported. tical area" (both are referred to in these instructions by the term "MSA"). Example: If on December 31 you had a home or a 3. In the case of brokered loan applications or branch office in an MSA and your assets exceeded applications forwarded to you through a correspon- $10 million, you must complete a register that lists the dent, report as originations loans that you approved home purchase and home improvement loans that you and subsequently acquired according to a preoriginate or purchase (and also lists applications that closing arrangement (whether or not they closed in did not result in an origination) beginning January 1. your institution's name). Additionally, report the B. Depository Institutions—Exception. You need not data for all applications that did not result in origicomplete a register — even if you meet the tests for nations — for example, applications that your instiasset size and location — if your institution is a bank, tution denied or that the applicant withdrew during savings association, or credit union that made no the calendar year covered by the report (whether or first-lien home purchase loans (including refinancings) not they would have closed in your institution's on one-to-four-family dwellings in the preceding cal- name). For all of these loans and applications, endar year. This exception does not apply in the case report the race or national origin, sex, and income of nondepository institutions. information, unless your institution is a bank, sav- C. Other Lending Institutions. Subject to the excep- ings association, or credit union with assets of $30 tion discussed below, for-profit mortgage lending in- million or less on the preceding December 31. stitutions (other than banks, savings associations, and 4. Originations are to be reported only once. If you credit unions) must complete a register listing data are the loan broker or correspondent, do not report about loan applications received, loans originated, and as originations loans that you forwarded to another loans purchased if the institution had a home or branch lender for approval prior to closing, and that were office in an MSA on the preceding December 31, and: approved and subsequently acquired by that lender 1. Had assets of more than $10 million (based on the (whether or not they closed in your name). combined assets of the institution and any parent 5. Report applications that were received in the corporation) on the preceding December 31, or previous calendar year but were acted upon during 2. Originated 100 or more home purchase loans the calendar year covered by the current register. (including refinancings of such loans) during the preceding calendar year, regardless of asset size. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 29 V. Instructions for Completion of ties exemption adjustment will be effective on the Loan!Application Register reserve computation period that begins Tuesday, December 22, 1992, and on the corresponding reserve maintenance period that begins Thursday, Decem- B. Action Taken. ber 24, 1992. For institutions that report quarterly, the 1. Type of Action. Indicate the type of action taken low reserve tranche adjustment and the reservable on the application or loan by using one of the liabilities exemption adjustment will be effective on the following codes. Do not report any loan application reserve computation period that begins Tuesday, Destill pending at the end of the calendar year; you will cember 15, 1992, and on the corresponding reserve report that application on your register for the year maintenance period that begins Thursday, January 14, in which final action is taken. 1993. For all depository institutions, the deposit cutoff 1—Loan originated level will be used to screen institutions in the second 2—Application approved but not accepted quarter of 1993 to determine the reporting frequency for 3—Application denied the twelve month period that begins in September 1993. 4—Application withdrawn The Board of Governors is amending 12 C.F.R. Part 5—File closed for incompleteness 204 as follows: 6—Loan purchased by your institution 2. Explanation of Codes. Part 204—Reserve Requirements of Depository a. Use code 2 when an application is approved but Institutions the applicant (or a loan broker or correspondent) fails to respond to your notification of approval or 1. The authority citation for Part 204 is revised to read your commitment letter within the specified time. as follows: Authority: Sections 11(a), 11(c), 19, 25, 25A of the 4. The LO^A/Application Register Code Sheet that is Federal Reserve Act (12 U.S.C. 248(a), 248(c), 371a, included at the end of Appendix A is amended by 461, 601, 611); section 7 of the International Banking revising it to read as follows: Act of 1978 (12 U.S.C. 3105); and section 411 of the Garn-St. Germain Depository Institutions Act of 1982 [See attached Loan/Application Register Code Sheet] (12 U.S.C. 461). 2. In section 204.9, paragraphs (a)(1) and (a)(2) are FINAL RULE—AMENDMENT TO REGULATION D revised to read as follows: The Board of Governors is amending 12 C.F.R. Part Section 204.9 Reserve requirement ratios. 204, its Regulation D (Reserve Requirements of Depository Institutions) to increase the amount of trans- (a)(1) Reserve percentages. The following reserve action accounts subject to a reserve requirement ratio ratios are prescribed for all depository institutions, of three percent, as required by section 19(b)(2)(C) of Edge and Agreement Corporations, and United States the Federal Reserve Act (12 U.S.C. 461(b)(2)(C)), branches and agencies of foreign banks: from $42.2 million to $46.8 million of net transaction accounts. This adjustment is known as the low reserve tranche adjustment. The Board has increased from Category Reserve Requirement $3.6 million to $3.8 million the amount of reservable liabilities of each depository institution that is subject to Net transaction accounts1 $0 to $46.8 million 3 percent of amount a reserve requirement of zero percent. This action is over $46.8 million $1,404,000 plus 10 percent of required by section 19(b)(ll)(B) of the Federal Reserve amount over $46.8 million Nonpersonal time deposits 0 percent Act (12 U.S.C. 461(b)(ll)(B)), and the adjustment is Eurocurrency liabilities 0 percent known as the reservable liabilities exemption adjustment. The Board is also leaving unchanged at $44.8 1. Dollar amounts do not reflect the adjustment to be made by the next paragraph. million the deposit cutoff level that is used in conjunction with the reservable liabilities exemption amount to determine the frequency of deposit reporting. (a)(2) Exemption from reserve requirements. Each Effective December 15, 1992. Compliance Dates: depository institution, Edge or agreement corporation, For depository institutions that report weekly, the low and U.S. branch or agency of a foreign bank is subject reserve tranche adjustment and the reservable liabili- to a zero percent reserve requirement on an amount of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LOAN/APPLICATION REGISTER CODE SHEET Use the following codes to complete the Loan/Application Register. The instructions to the HMDA-LAR explain the proper use of each code. Application or Loan Information Applicant Information Type of Purchaser Type: Race or National Origin: 0~ Loan was not originated or was not 1 -- Conventional (any loan other than FHA, 1 -- American Indian or Alaskan Native sold in calendar year covered by register 1 - FNMA (Federal National Mortgage Association) VA or FmHA loans) 2 -- Asian or Pacific Islander 2 - GNMA (Government National Mortgage 2 -- FHA-insured (Federal Housing 3 -- Black Association) Administration) 4 -- Hispanic 3 - FHLMC (Federal Home Loan Mortgage 3 -- VA-guaranteed (Veterans Administration) 5--White Corporation) 4 -- FmHA-insured (Farmers Home 6--Other 4 - FmHA (Farmers Home Administration) Administration) 7 - Information not provided by applicant 5 - Commercial bank in mail or telephone application Purpose: 8 - Not applicable 6 - Savings bank or savings association 7 - Life insurance company 1 - Home purchase (one-to-four family) Sex: 8 - Affiliate institution 2 ~ Home improvement (one-to-four family) 9 - Other type of purchaser 3 ~ Refinancing (home purchase or home 1 - Male improvement, one-to-four family) 2 - Female 4 ~ Multifamily dwelling (home purchase, home 3 - Information not provided by applicant Reasons for Denial (optional) improvement, and refinancings) in mail or telephone application 4 - Not applicable 1 - Debt-to-income ratio Owner-Occupancy: 2 - Employment history 3 - Credit history 1 - Owner-occupied as a principal dwelling 4 - Collateral 2 - Not owner-occupied 5 - Insufficient cash (downpayment, closing costs) 3 - Not applicable 6 -- Unverifiable information 7 - Credit application incomplete Action Taken: 8 - Mortgage insurance denied 9 ~ Other 1 ~ Loan originated 2 ~ Application approved but not accepted 3 ~ Application denied by financial institution 4 - Application withdrawn by applicant 5 -- File closed for incompleteness 6 - Loan purchased by your institution Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 31 its transaction accounts subject to the low reserve and decision and, as such, may be enforced under tranche in paragraph (a)(1) of this section not in excess applicable laws. This approval also is conditioned of $3.8 million determined in accordance with section upon Capital receiving all necessary Federal and state 204.3(a)(3) of this part. approvals. The transaction approved in this Order shall not be consummated before the thirtieth calendar day following the effective date of this Order, or later ORDERS ISSUED UNDER BANK HOLDING than three months after the effective date of this COMPANY ACT Order, unless such period is extended for good cause by the Federal Reserve Bank of St. Louis, pursuant to Orders Issued Under Section 3 of the Bank delegated authority. Holding Company Act By order of the Board of Governors, effective November 30, 1992. Capital Bancorporation, Inc. Cape Girardeau, Missouri Voting for this action: Chairman Greenspan and Governors Mullins, Angell, Lindsey, and Phillips. Voting against this action: Governors Kelley and LaWare. Order Approving Acquisition of a Bank JENNIFER J. JOHNSON Capital Bancorporation, Inc., Cape Girardeau, Mis- Associate Secretary of the Board souri ("Capital"), a bank holding company within the meaning of the Bank Holding Company Act ("BHC Comerica Incorporated Act"), has applied pursuant to section 3 of the BHC Detroit, Michigan Act (12 U.S.C. § 1842) to acquire the voting shares of Magna Bank of Southern Missouri, Ozark, Missouri. Order Approving Acquisition of a Bank Notice of the application, affording interested parties an opportunity to submit comments, has been Comerica Incorporated, Detroit, Michigan ("Comerpublished (57 Federal Register 28,871 (1992)). The ica"), a bank holding company within the meaning of time for filing comments has expired, and the Board the Bank Holding Company Act ("BHC Act"), has has considered the application and all comments reapplied for the Board's approval under section 3(a)(3) ceived in light of the factors set forth in section 3(c) of of the BHC Act (12 U.S.C. § 1842(a)(3)) to acquire all the BHC Act. of the voting shares of Hibernia National Bank in In reviewing this application, the Board has consid- Texas, Dallas, Texas ("Hibernia-Texas"), from Hiered the financial and managerial resources and future bernia Corporation, New Orleans, Louisiana ("Hiberprospects of the organizations and institutions innia"). Upon consummation of the proposal, Comerica volved, the effects of this proposal on competition, the proposes to merge Hibernia-Texas into Comerica's convenience and needs of the community to be served, subsidiary bank, Comerica Bank-Texas, Dallas, Texas and other supervisory factors that the Board must ('' Comerica-Texas ").1 consider under section 3 of the BHC Act. On the basis Notice of the application, affording interested perof all the facts of record, including the commitments sons an opportunity to submit comments, has been made by Capital in this application and in subsequent published (57 Federal Register 37,809 (1992)). The correspondence, the Board finds that these considertime for filing comments has expired, and the Board ations are consistent with approval of this application, has considered the application and all comments reand this application is approved for the reasons set ceived in light of the factors set forth in section 3(c) of forth in the Board's Statement, which will be released the BHC Act. at a later date. The dissenting statement of Governors Comerica, with approximately $26.8 billion in con- Kelley and LaWare also will be released at that time. solidated assets, controls seven banks and one thrift Approval of this proposal is specifically conditioned located in California, Florida, Illinois, Michigan and upon compliance with the commitments made by Texas.2 Comerica is the 11th largest commercial bank- Capital in connection with this application, including ing organization in Texas, controlling deposits of Capital's continued compliance with commitments and initiatives relating to its performance under the Community Reinvestment Act, as discussed in the 1. This merger is subject to review under the Bank Merger Act by Board's Statement. For purposes of this action, the the Federal Deposit Insurance Corporation, Comerica-Texas's pricommitments and conditions relied on in reaching this mary federal regulator. decision are both considered conditions imposed in 2. Asset data as of June 30, 1992. Comerica also has established a credit card bank in Ohio that has received approval to operate as a writing by the Board in connection with its findings full-service bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

32 Federal Reserve Bulletin • January 1993 $1.2 billion, representing less than 1 percent of total tion in the Dallas banking market or any other relevant deposits in commercial banks in the state.3 Hibernia- banking market. Texas is the 14th largest commercial banking organi- The Board also concludes that the financial and zation in Texas, controlling deposits of nearly $1 managerial resources and future prospects of Comerbillion, representing less than 1 percent of total depos- ica and Hibernia, and their respective subsidiaries, its in commercial banks in the state. Upon consumma- and the other supervisory factors that the Board must tion of the proposed transaction, Comerica would consider under section 3 of the BHC Act, are consisbecome the eighth largest commercial banking organi- tent with approval. zation in Texas, controlling deposits of $2.2 billion, representing 1.5 percent of total deposits in commer- Convenience and Needs Considerations cial banks in the state. In acting on an application to acquire a depository Competitive, Financial, Managerial and Supervisory institution under the BHC Act, the Board must con- Considerations sider the convenience and needs of the communities to be served, and take into account the records of the Comerica and Hibernia compete directly in the Dallas relevant depository institutions under the Community banking market.4 Upon consummation of this pro- Reinvestment Act (12 U.S.C. § 2901 et seq.) posal, Comerica would become the fifth largest com- ("CRA"). The CRA requires the federal financial mercial or thrift organization ("depository institu- supervisory agencies to encourage financial institution") in the Dallas banking market, controlling tions to help meet the credit needs of the local comdeposits of $1.7 billion, representing approximately munities in which they operate, consistent with the 5.6 percent of total deposits in depository institutions safe and sound operation of such institutions. To in the market ("market deposits").5 After considering accomplish this end, the CRA requires the appropriate the number of competitors remaining in the market, federal supervisory authority to "assess the instituthe relatively small increase in concentration as mea- tion's record of meeting the credit needs of its entire sured by the Herfindahl-Hirschman Index ("HHI"),6 community, including low- and moderate-income market share, and all other facts of record, the Board neighborhoods, consistent with the safe and sound concludes that consummation of the proposal would operation of such institution," and to take that record not result in a significantly adverse effect on competi- into account in its evaluation of bank holding company applications.7 The Board has received comments from two organizations ("Protestants") alleging that Comerica- 3. Deposit and market data as of December 31, 1991. Texas and Hibernia-Texas have not complied with the 4. The Dallas banking market is approximated by Dallas County; the southwest quadrant of Denton County (including Denton and CRA and lending laws designed to provide borrowers Lewisville); the southwest quadrant of Collin County (including with equal access to credit. In particular, the Protes- McKinney and Piano); the northern half of Rockwall County; the communities of Forney and Terrel in Kaufman County; Midlothian, tants assert that Comerica-Texas and Hibernia-Texas Waxahachie and Ferris in Ellis County ; and Grapevine and Arlington have failed to meet the credit and deposit needs of lowin Tarrant County, Texas. and moderate-income residents of South Dallas. The 5. Market share data are based on calculations in which the deposits of thrift institutions are included at 50 percent. The Board previously Protestants also allege that Comerica-Texas illegally has indicated that thrift institutions have become, or have the poten- discriminates against ethnic minorities in making lendtial to become, significant competitors of commercial banks. See Midwest Financial Group, 75 Federal Reserve Bulletin 386 (1989); ing decisions, citing data for 1990 filed under the Home National City Corporation, 70 Federal Reserve Bulletin 743 (1984). Mortgage Disclosure Act ("HMDA").8 Currently, Comerica-Texas is the seventh largest depository insti- The Board has carefully reviewed the CRA perfortution in the Dallas banking market, controlling $1.1 billion in deposits, representing 3.6 percent of market deposits. Hiberaia-Texas is the mance records of Comerica, its subsidiary banks, and thirteenth largest depository institution in the market, controlling $620 million in deposits, representing 2.0 percent of market deposits. 6. The HHI in the Dallas banking market would increase 11 points to 1380. Under the revised Department of Justice Merger Guidelines 7. 12 U.S.C. § 2903. (49 Federal Register 26,823 (June 29, 1984)), a market in which the 8. One of the Protestants also raised concerns about the minority post-merger Herfindahl-Hirschman Index ("HHI") is between 1000 hiring and promotion practices of Comerica-Texas. Comerica disputes and 1800 is considered moderately concentrated. The Justice Depart- these allegations, and maintains that it actively promotes employment ment has informed the Board that a bank merger or acquisition opportunities for minorities. While the Board fully supports affirmagenerally will not be challenged (in the absence of other factors tive programs designed to promote equal opportunity in every aspect indicating anti-competitive effects) unless the post-merger HHI is at of a bank's personnel policies and practices in the employment, least 1800 and the merger increases the HHI by 200 points. The Justice development, advancement, and treatment of employees, the Board Department has stated that the higher than normal HHI thresholds for believes that the alleged deficiencies in Comerica-Texas's general screening bank mergers for anti-competitive effects implicitly recog- personnel and employment practices are beyond the scope of the nize the competitive effect of limited-purpose lenders and other factors that the Board may properly consider under the CRA, or the non-depository financial entities. convenience and needs factor of the BHC Act. 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Legal Developments 33 Hibernia-Texas, as well as all comments received Comptroller of the Currency ("OCC"), and has preregarding this application, Comerica's responses to liminarily been assigned an overall "satisfactory" those comments, and all of the other relevant facts of CRA performance rating. record in light of the CRA, the Board's regulations, and the Statement of the Federal Financial Supervi- B. Corporate Policies sory Agencies Regarding the Community Reinvestment Act ("Agency CRA Statement").9 Comerica-Texas has in place the type of policies outlined in the Agency CRA Statement that contribute Record of Performance Under the CRA to an effective CRA program. For example, the board of directors of Comerica has adopted a written CRA A. CRA Performance Examination plan for 1991-1993, which includes goals, objectives, and methodology for self-assessment. The Comerica The Agency CRA Statement provides that a CRA board has also established a CRA Committee, which examination is an important and often controlling meets monthly, and a Public Responsibility Commitfactor in the consideration of an institution's CRA tee, which meets quarterly, to compile and issue status record and that these reports will be given great weight reports, review technical CRA compliance, conduct in the applications process.10 The Board notes that semi-annual reviews of the distribution of credit prod- Comerica-Texas received an overall "outstanding" ucts, submit annual CRA statements to the board for rating in the examination of CRA performance con- review, and provide the board with a summary of CRA ducted by the Federal Deposit Insurance Corporation activities. Comerica-Texas also conducts regular CRA ("FDIC") as of October 11, 1991. In this regard, self-assessments, and the bank's board of directors Comerica-Texas's overall CRA performance im- actively supports CRA training for all bank personnel proved since its "satisfactory" CRA rating in the in the form of workshops, seminars, in-house training, FDIC's previous examination as of March 29, 1990. In and a periodic CRA newsletter. addition, Comerica's other six subsidiary banks have received either "satisfactory" or "outstanding" rat- C. Ascertainment and Marketing ings from their primary supervisors in the most recent examinations of their CRA performance.11 Hibernia- Community credit needs are ascertained by Comerica- Texas is currently being examined for CRA perfor- Texas through a multi-layered approach to community mance by its primary regulator, the Office of the outreach. For example, the bank's management has ongoing, substantive contacts with numerous civic, religious, neighborhood, minority, and small business organizations. Comerica-Texas also has an extensive 9. 54 Federal Register 13,742 (1989). 10. Id. at 13,745. officer call program at each branch. Approximately 25 11. Comerica's thrift subsidiary, Comerica Bank-Florida, Federal percent of all calls are made by the four branches Savings Bank, Clearwater, Florida ("Comerica-Florida"), representing less than 1 percent of Comerica's consolidated assets, received a located in low- and moderate-income areas of the "needs to improve" rating from the Office of Thrift Supervision bank's delineated market.12 In addition, the bank has ("OTS") at its most recent CRA performance examination as of developed, and will soon distribute, a credit needs February 1992. Comerica immediately initiated steps to address areas for improvement that were identified in the examination. For example, survey. In the bank's most recent CRA examination Comerica has implemented the following initiatives under its plan to report, the FDIC concluded that the board and manimprove the CRA performance of Comerica-Florida: agement of Comerica-Texas maintained a proactive (1) Establishment of a branch manager calling program that includes calls to businesses and community organizations serving low- to attitude toward determining community credit needs, moderate-income and minority areas; and in developing products to address those needs. (2) Expansion of its market delineation to include additional lowand moderate-income neighborhoods; Comerica-Texas markets its products and services (3) Appointment of a CRA officer; through a variety of advertising activities, including (4) Establishment of a community advisory council; neighborhood and regional newspapers, local radio (5) Development of a non-traditional marketing plan; (6) Establishment of a public responsibility committee; stations, billboards, statement stuffers, and lobby (7) Implementation of a geocoding system to improve the monitoring and analysis of loan applications and denials; and (8) Initiation of internal review and self-assessment procedures. In addition, Comerica will open an office of its mortgage company 12. One of the Protestants maintains that Comerica-Texas does not subsidiary in Florida, and will offer special mortgage and home have a sufficient number of branch offices in South Dallas to adeimprovement products to low- and moderate-income customers. quately serve the banking needs of that area's residents. At Comerica- These loan products feature more flexible underwriting standards than Texas's most recent CRA examination, the FDIC found that the existing credit products offered by Comerica-Florida. The OTS has bank's offices are readily accessible to all segments of the communireviewed this plan and informed the Board that Comerica-Florida is ties served by the bank. The Board also notes that consummation of making satisfactory progress in improving its CRA performance the proposal will expand the number of Comerica-Texas's branch record. offices in low- and moderate-income areas, including South Dallas. 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34 Federal Reserve Bulletin • January 1993 signs. All of the bank's marketing and advertising The bank's Senior Vice-President serves as a director programs are reviewed, approved, and monitored by of that organization. the board and senior management of the bank. Much Comerica-Texas also participates in the U.S. Deof the bank's advertising is directed toward low-and partment of Housing and Urban Development's 203K moderate-income neighborhoods. For example, home Program, through which it has funded loans for the improvement loans, budget checking accounts, and rehabilitation of properties. In addition, Comericasmall business loans are regularly advertised in minor- Texas has provided financing for a small hotel used as ity publications and on billboards located in low- and a shelter for the homeless and mentally ill. In South moderate-income areas. In addition, Comerica-Texas Dallas and West Dallas, Comerica-Texas has provided has established a Speakers Bureau as a further means financing for more than 60 houses owned by a neighto provide credit and banking information to individ- borhood-based, non-profit organization, and rented to uals and community groups. low-income residents. Moreover, the bank has re- In addition, Comerica-Texas has contracted with a cently applied to become a lender under the Title I minority-owned management consulting firm to advise program for home improvement loans. The bank has the bank on marketing its services in the southern also participated in various other programs directed at Dallas area, and to develop a comprehensive market- economic revitalization of various low- and moderateing plan for that area. This marketing plan will focus income areas of the Dallas metropolitan area. on mortgage lending, lending to small businesses, and With respect to small business lending, Comericaimproving community awareness of the bank's ser- Texas participates in a number of Small Business vices. Comerica-Texas anticipates that the plan will be Administration loan programs. Comerica-Texas has implemented through minority-owned firms. Comer- also sponsored numerous business conferences and ica-Texas has also hired a minority mortgage loan seminars for individuals interested in starting small officer to serve the South Dallas area from the bank's businesses. The bank uses these occasions to discuss Wynne wood Branch. credit requirements and standards for small- to medium-sized companies in need of bank financing. To strengthen its CRA performance in South Dallas, D. Lending and Other Activities Comerica-Texas has developed a marketing plan that will include community participation and an officer Comerica-Texas supports a number of governmental calling program. In this regard, the bank has made a programs designed to help meet the housing-related number of calls in low- and moderate-income areas credit needs of low- and moderate-income borrowers. through its General Banking Calling Program and For example, the bank has provided a $5 million Small Business Lenders Program. Comerica-Texas commitment to the Dallas Affordable Housing Partner- has also established focus groups to evaluate small ship ("DAHP") to provide low-interest mortgages to business lending needs and consumer loan needs low-income first-time homebuyers. Comerica-Texas within the bank's delineated service community. has also provided a $100,000 line of credit to DAHP for Moreover, Comerica-Texas has provided equipment, use in acquiring and rehabilitating homes before per- management advice, guidance, and loans to Common manent financing is obtained. Comerica-Texas was the Ground Federal Credit Union, a federally-chartered first bank to participate in DAHP to offer this type of credit union aimed at providing non-profit services to interim financing. Senior bank personnel are members residents of South Dallas. of DAHP's board of directors, and DAHP pamphlets and materials are made available at all branches. E. HMD A Data and Lending Practices In addition, Comerica has provided over $1 million to Common Ground Community Economic Develop- The Board has reviewed the 1990 and 1991 HMDA ment Corporation to provide financing for single- data reported by Comerica-Texas and Hibernia-Texas, family residences. Comerica has supported this orga- as well as Protestants' comments regarding this data.13 nization since its inception over ten years ago. The HMDA data shows disparities in the rates for Further, Comerica-Texas has a $1.5 million participa- housing-related loan applications, approvals, and detion in a City of Dallas bond program that finances single-family mortgages for low- and moderate-income families. Comerica-Texas also supports the Southern 13. Banks are required under the HMDA to report certain informa- Dallas Development Corporation both financially and tion regarding loan applications, approvals, and denials to the various through service on its board of directors, and has banking agencies and the public. This information includes data on the recently committed to assist the Corporation in the race, gender, and income of individual loan applicants, as well as the location of the property securing the potential loan, and a description funding of development loans over a four-year period. of the application. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 35 nials that vary by racial or ethnic group in certain areas the convenience and needs factor under the BHC Act. of Dallas. Protestants have alleged illegal discrimina- Based on a review of the entire record of performance, tory lending practices on the basis of this data. including information provided by Protestants and by Because all banks are obligated to ensure that their the banks' primary regulators, the Board believes that lending practices are based on criteria that ensure not the efforts of Comerica and Hibernia to help meet the only safe and sound lending, but also ensure equal credit needs of all segments of the communities served access to credit by creditworthy applicants regardless by Comerica-Texas and Hibernia-Texas, including of race, the Board is concerned when the record of an low- and moderate-income neighborhoods, are consisinstitution indicates disparities in lending to minority tent with approval. applicants. The Board recognizes, however, that The Board recognizes that the record compiled in HMDA data alone provides only a limited measure of this application points to areas for improvement, esany given institution's lending in the communities that pecially in housing-related lending to minority and the institution serves. The Board also recognizes that low- and moderate-income borrowers. Comerica has HMDA data have limitations that make the data an initiated steps designed to strengthen the CRA perforinadequate basis, absent other information, for con- mance of the insured institutions. In this regard, the clusively determining whether an institution has en- outstanding CRA performance rating received by gaged in illegal discrimination on the basis of race or Comerica-Texas reflects Comerica's willingness to adethnicity in making lending decisions. dress promptly areas where the improvements can be The most recent examinations for CRA compliance made to help meet community credit needs. The Board and performance conducted by bank supervisory believes that this record, and the initiatives proposed agencies found no evidence of illegal discrimination or by Comerica-Texas, will help the resulting organizaother illegal credit practices at Comerica-Texas or tion improve its CRA performance and address weak- Hibernia-Texas. In the case of Comerica-Texas, the nesses identified by Protestants. examination specifically considered the results of the In this light, and on the basis of all of the facts of 1990 HMDA data and the loan policies and procedures record, the Board concludes that the convenience and which governed the loan applications that were the needs considerations, including the CRA performance source for the 1991 data. records of Comerica-Texas and Hibernia-Texas, are Comerica-Texas has also taken steps designed to consistent with approval of this application. The improve its lending to minority and low- and moder- Board expects Comerica-Texas to implement fully the ate-income neighborhoods in Dallas. For example, CRA initiatives discussed in this Order, and contained Comerica-Texas's management determined that the in this application. Comerica-Texas's progress in imbank should review its minority mortgage lending plementing these initiatives will be monitored by the practices, and established a task force to review the Federal Reserve Bank of Chicago, and in future applibank's mortgage products and recommend additional cations by Comerica to expand its deposit-taking facredit products, if needed, to facilitate lending to low- cilities.14 and moderate-income customers. The task force, Based on the foregoing, including the conditions and which is chaired by the bank's Vice Chairman, has commitments described in this Order and those made already met four times this year, and considered a in this application, and all of the facts of record, the number of new lending products for low- and moder- Board has determined that this application should be, ate-income customers. and hereby is, approved. The Board's approval is Comerica-Texas has also introduced a new affordable housing loan with underwriting guidelines more flexible than traditional mortgage loans. Applications 14. Protestants have requested that the Board hold a public meeting or hearing on this application. The Board is not required under section under this program are currently being processed. The 3(b) of the BHC Act to hold a hearing on an application unless the bank will offer this program in conjunction with the appropriate banking authority for the bank to be acquired makes a Affordable Housing League, Inc., a non-profit group timely written recommendation of denial of the application. In this case, the FDIC has not recommended denial of the proposal. that focuses on low- and moderate-income housing Generally, under the Board's rules, the Board may, in its discretion, issues. The Affordable Housing League will serve as a hold a public hearing or meeting on an application to clarify factual source of referrals for the new program. issues related to the application and to provide an opportunity for testimony, if appropriate. 12 C.F.R. 262.3(e) and 262.25(d). The Board has carefully considered this request. In the Board's view, F. Conclusion Regarding Convenience and interested parties have had a sufficient opportunity to present written submissions, and have submitted substantial written comments that Needs Factors have been considered by the Board. On the basis of all of the facts of record, the Board has determined that a public meeting or hearing is not necessary to clarify the factual record in these applications, or The Board has carefully considered the entire record, otherwise warranted in this case. Accordingly, the request for a public including the comments filed in this case, in reviewing meeting or hearing on this application is hereby denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

36 Federal Reserve Bulletin • January 1993 specifically conditioned upon compliance by Comerica controls less than 1 percent of the total deposits in with all the commitments made in connection with this commercial banking or thrift institutions in that market application. The commitments and conditions relied ("market deposits"). on by the Board in reaching this decision are both Principals of GBC also indirectly control United conditions imposed in writing by the Board in connec- Savings Bank, F.S.B., San Francisco, California tion with its findings and decision, and as such may be ("USB"). USB controls deposits of approximately enforced in proceedings under applicable law. This $1.0 billion and is the 43rd largest insured depository approval is also conditioned upon Comerica receiving organization in the state, representing less than all necessary Federal and state approvals. 1 percent of total deposits in commercial banking or This transaction should not be consummated before thrift institutions in the state. USB operates branches the thirtieth calendar day following the effective date in the Los Angeles banking market, and controls less of this Order, or later than three months after the than 1 percent of market deposits.3 The Los Angeles effective date of this Order, unless such period is banking market is unconcentrated, and upon consumextended for good cause by the Board or the Federal mation of the proposal the Herfindahl-Hirschman In- Reserve Bank of Chicago, acting pursuant to delegated dex ("HHI") for the market would be 962.4 Based on authority. all the facts of record, the Board concludes that By order of the Board of Governors, effective consummation of the proposed transaction would not November 30, 1992. result in any significantly adverse effects on competition in any relevant banking market. Accordingly, the Voting for this action: Chairman Greenspan and Governors Board concludes that competitive considerations are Mullins, Angell, Kelley, LaWare, Lindsey, and Phillips. consistent with approval of the application. In assessing the financial factors and future pros- JENNIFER J. JOHNSON pects in this case, the Board has considered that Bank Associate Secretary of the Board is in seriously troubled financial condition and that, as part of the proposal, GBC proposes to provide sub- GBC Holdings, Inc. stantial additional capital to Bank and thereby make it Los Angeles, California a viable competitor. In light of this and other facts of record, the Board concludes that the financial and Order Approving Formation of a Bank Holding managerial resources and future prospects of GBC and Company Bank, the convenience and needs factors, and the other factors the Board must consider under the BHC GBC Holdings, Inc. ("GBC") has applied under sec- Act are consistent with approval. tion 3(a)(1) of the Bank Holding Company Act ("BHC Based on all of the facts of record, including the Act") (12 U.S.C. § 1842(a)(1)) to become a bank commitments made by GBC and its principal shareholding company by acquiring all the voting shares of holders in connection with this application, the Board Guaranty Bank of California, both of Los Angeles, has determined to approve GBC's application. The California ("Bank"). Board's decision is specifically conditioned on compli- Notice of the application, affording interested perance by GBC and its principal shareholders with all of sons an opportunity to submit comments, has been the commitments made in connection with this applipublished (57 Federal Register 10,026). The time for cation. The commitments relied upon by the Board in filing comments has expired, and the Board has conreaching its decision are conditions imposed in writing sidered the application and all comments received in in connection with this Board's findings and decision light of the factors set forth in section 3(c) of the BHC Act. GBC is a non-operating company formed for the purpose of acquiring Bank. Bank controls deposits of 3. Market share data are based on calculations in which the deposits approximately $16.7 million and is the 369th largest of thrift institutions are included at 50 percent. The Board previously has indicated that thrift institutions have become, or have the potencommercial banking organization in California, repre- tial to become, significant competitors of commercial banks. See senting less than 1 percent of total deposits in com- Midwest Financial Group, 75 Federal Reserve Bulletin 386 (1989); mercial banking deposits in the state.1 Bank operates National City Corporation, 70 Federal Reserve Bulletin (1984). 4. Under the revised Department of Justice Merger Guidelines, in the Los Angeles, California, banking market,2 and 49 Federal Register 26,823 (June 29, 1984), a market in which the post-merger HHI is less than 1000 is considered unconcentrated. The Justice Department has informed the Board that a bank merger or acquisition generally will not be challenged (in the absence of other 1. Data are as of June 30, 1991. factors indicating anticompetitive effects) unless the post-merger HHI 2. The Los Angeles banking market is approximated by the is at least 1800 and the merger increases the HHI by more than 200 Los Angeles RMA. points. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 37 and, as such, may be enforced in proceedings under Marksville, Louisiana.2 These shares of Union are applicable law. currently owned by Cen-La Bank and Mansura Bank. The Superintendent of Banks for the State of Cali- Notice of the applications, affording interested perfornia has requested the Board to act immediately on sons an opportunity to submit comments, has been this application in light of the financial condition of published (57 Federal Register 36,649 and 41,142 Bank and to eliminate the post-approval waiting period (1992)). The time for filing comments has expired, and in this case in order to prevent the probable failure of the Board has considered the applications and all Bank. Based on all of the facts of record, the Board comments received in light of the factors set forth in finds that conditions satisfy the requirements for im- section 3(c) of the BHC Act. mediate consummation of this proposal. In accordance Mansura is the 117th largest commercial banking with sections 3(b) and 11(b) of the BHC Act organization in Louisiana, controlling deposits of (12 U.S.C. §§ 1842(b)(1) and 1842(b)(ll)), the acqui- $31.9 million, representing less than 1 percent of total sition of Guaranty Bank may be consummated imme- deposits in commercial banks in the state.3 Cottonport diately after the effective date of this Order, but no is the 123d largest commercial banking organization in later than three months after the effective date of this Louisiana, controlling deposits of $27.9 million, repreorder, unless such period is extended for good cause senting less than 1 percent of total deposits in comby the Board or the Federal Reserve Bank of Califor- mercial banks in the state. Cen-La is the 130th largest nia, acting pursuant to delegated authority. commercial banking organization in Louisiana, con- By order of the Board of Governors, effective trolling deposits of $26.3 million, representing less November 20, 1992. than 1 percent of total deposits in commercial banks in the state. Upon consummation of the proposed trans- Voting for this action: Chairman Greenspan and Governors action, Mansura would become the 47th largest com- Mullins, Angell, Kelley, Lindsey, and Phillips. Voting against mercial banking organization in Louisiana, controlling this action: Governor La Ware. deposits of $86.1 million, representing less than 1 percent of total deposits in commercial banks in the JENNIFER J. JOHNSON state. Associate Secretary of the Board Mansura, Cen-La, and Cottonport are under common control, and have numerous director and officer Mansura Bancshares, Inc. interlocks. Each of these three institutions operates in Mansura, Louisiana the Avoyelles Parish, Louisiana banking market, and, together, these institutions control 35.6 percent of Order Approving the Merger of Bank Holding deposits in commercial banks in the market.4 The Companies institutions do not currently compete against each other. The Board has reviewed the competitive effects Mansura Bancshares, Inc., Mansura, Louisiana of the original acquisition at the time these institutions ("Mansura"), a bank holding company within the became affiliated, and determined that the competitive meaning of the Bank Holding Company Act ("BHC factors at that time were not significantly adverse.5 Act"), has applied for the Board's approval under The reorganization will not have a substantial effect on section 3 of the BHC Act (12 U.S.C. § 1842) to merge with Cen-La Bancshares, Inc., Marksville, Louisiana ("Cen-La"), and Cottonport Bancshares, Inc., 2. Mansura has made a number of commitments relied on by the Cottonport Louisiana ("Cottonport"), and thereby Board in previous cases to ensure that Mansura will not exercise a controlling influence over Union. See Summit Bancorp, Inc., 77 acquire Central Louisiana Bank & Trust Company, Federal Reserve Bulletin 952 (1991); United Counties Bancorporation, Inc., Marksville, Louisiana ("Cen-La Bank") and 75 Federal Reserve Bulletin 714 (1989). These commitments are set Cottonport Bank, Cottonport, Louisiana.1 In addition, forth in the Appendix. 3. State deposit data are as of December 31, 1991. Market deposit Mansura has applied pursuant to section 3 of the BHC data are as of June 30, 1991. Act to acquire 9.7 percent of the voting shares of 4. The Avoyelles Parish banking market is approximated by Avoyelles Parish, Louisiana. Union Bancshares, Inc., Marksville, Louisiana 5. In 1984, the Roy banking chain controlled 18.1 percent of the ("Union"), the parent company of Union Bank, deposits in commercial banks in the Avoyelles Parish banking market. With the addition of Cottonport Bank, the Roy banking chain controlled 29.4 percent of deposits in the Avoyelles Parish banking market and constituted the largest of six banking organizations in the market. The FDIC considered the competitive effects of this acquisition in 1984 and determined that they were not significantly adverse. 1. Mansura also intends to merge its subsidiary, Mansura State See letter dated August 1, 1984, from the FDIC to Mr. A.J. Roy, Jr. Bank, Mansura, Louisiana ("Mansura Bank"), and Cen-La Bank into The Federal Reserve Bank of Atlanta subsequently approved the Cottonport Bank. This merger is subject to review by the FDIC under formation of Cottonport to hold Cottonport Bank. See Cottonport the Bank Merger Act. Bancshares, Inc., 70 Federal Reserve Bulletin 897 (1984). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

38 Federal Reserve Bulletin • January 1993 competition in the Avoyelles Parish banking market, a reasonable offer for them. The Board has also placed but should permit the resulting organization to operate significant weight on the fact that the directors and more effectively. As a result, the Board concludes that certain officers of Union have formed a voting trust competitive factors raised by the reorganization of the that currently controls 51 percent of Union's voting three institutions are consistent with approval. shares. In light of these facts, the Board believes that However, the Board believes that the proposal Mansura will not have the power to affect the market would raise serious competitive concerns in the Avoy- behavior of Union. Accordingly, the Board concludes elles Parish banking market if the proposal involved that competitive considerations are consistent with the acquisition of control of Union by Mansura. If approval of the applications.8 considered as a combined banking organization, upon The Board also concludes that the financial and consummation of this proposal, Mansura and Union managerial resources and the future prospects of Manwould become the largest depository institution in the sura are consistent with approval. The Board also Avoyelles Parish banking market, controlling approx- finds that the convenience and needs and other factors imately 61.7 percent of deposits in commercial banks the Board must consider under section 3 of the BHC in the market.6 Act are consistent with approval.9 The question of whether a substantial lessening of Based on the foregoing and other facts of record,10 competition would result from a minority investment the Board has determined that these applications in a competing bank must be answered in light of the specific facts of each case.7 The Board views these acquisitions with concern and continues to believe that noncontrolling interests in directly competing banks or 8. The Board has received comments from an individual ("Protesbank holding companies may raise serious questions tant") who has alleged that this proposal, in light of the recent closure under the BHC Act. The Board has previously noted of a large thrift institution in the Avoyelles Parish banking market and that one company need not acquire control of another Mansura's ownership of 9.7 percent of Union, would lead to a "monopolistic environment" in the Avoyelles Parish banking market. in order substantially to lessen competition between For the reasons noted above, particularly the passive nature of them. It is possible, for example, that the acquisition Mansura's investment in Union, the Board does not believe that of a substantial ownership interest in a competitor or Protestant has raised competitive issues that would warrant denial of this application. potential competitor of the acquiring firm may alter the 9. In this regard, the Board has carefully considered additional market behavior of both firms in such a way as to comments submitted by Protestant stating that the proposed management of Mansura and its subsidiaries is inadequate and that financial weaken or eliminate independence of action between considerations are not consistent with approval of the applications. the organizations and increase the likelihood of coop- Protestant stated that certain members of the proposed management erative operations. of Applicant did not have a formal education in banking; that certain managers had prior associations with failed depository institutions or In this case, it is the Board's judgment, based upon were otherwise unqualified; and that no one has been designated to careful analysis of the record, that no significant serve as cashier at Cottonport Bank after the merger. Mansura and reduction in competition is likely to result from Man- certain of the managers named by Protestant submitted information to the Board concerning their backgrounds and experience. Mansura has sura's proposed acquisition of shares of Union. also named a cashier for the merged Cottonport Bank. The Board has The record in this case shows that there are no reviewed this information as well as examination reports that discuss the performance of these individuals. In addition, Protestant alleged officer or director interlocks between Union and Manthat management of Cen-La Bank is self-serving in its transactions sura, and Mansura has committed not to establish any with the bank. The Board also has reviewed these comments and the officer or employee interlocks or to seek or accept any relevant examination reports of Cen-La Bank and finds no basis for denial of this application. On the basis of all the facts of record, the representation on the board of directors of Union or Board concludes that Protestant's comments on financial and manaany of its affiliates. Mansura has committed that its gerial considerations are not supported by the record of this application. ownership interest in Union will be a strictly passive 10. The Board also received comments from two individuals alleginvestment, and Mansura is prohibited by its commit- ing that Cen-La Bank improperly foreclosed on certain collateral ments and the BHC Act from acting either alone or in pledged as security for a loan. The Board notes that these commenters have submitted their complaints to the State of Louisiana and the concert with any other entity to control Union without FDIC and that these claims are also the subject of several civil additional prior Board approval. Mansura also has lawsuits. The Board notes in this respect that the State of Louisiana stated that it will sell its shares of Union if it receives Banking Department has determined that information submitted by Second Protestants to it did not make a prima facie showing that Cen-La Bank violated any state banking law or regulation. In addition, the FDIC, the primary federal bank supervisory agency for Cen-La Bank, has approved the application for the merger of the banks 6. Acquisition of Union by Mansura would increase the Herfindahl- involved in this transaction.These proceedings will provide these Hirschman Index ("HHI") by 1860 points to 4748. No thrifts operate commenters with an adequate remedy if the alleged misconduct can be in the Avoyelles banking market. established. Based on all the facts of record, including the information 7. SunTrust Banks, Inc., 76 Federal Reserve Bulletin 542 (1990); submitted by Mansura and the commenters and examination reports of Cen-La Bank, the Board does not believe that these allegations First State Corporation, 76 Federal Reserve Bulletin 376 (1990); The warrant denial of these applications. Summit Bancorporation, 75 Federal Reserve Bulletin 712 (1989). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 39 should be, and hereby are, approved.11 The Board's (4) Acquire or retain shares that would cause the approval of these transactions is specifically condi- combined interest of Mansura and its officers, directioned on Mansura's compliance with the commit- tors and affiliates to equal or exceed 25 percent of ments made by Mansura in connection with these the outstanding voting shares of Union; applications. All of the commitments and conditions (5) Propose a director or slate of directors in opporelied upon by the Board in reaching its decision are sition to a nominee or slate of nominees proposed by commitments imposed in writing in connection with the management or board of directors of Union; the Board's findings and decision and may be enforced (6) Attempt to influence the dividend policies or in proceedings under applicable laws. The transactions practices of Union or its bank subsidiary; approved in this Order shall not be consummated (7) Solicit or participate in soliciting proxies with before the thirtieth calendar day following the effective respect to any matter presented to the shareholders date of this Order, or later than three months after the of Union; effective date of this Order, unless such period is (8) Attempt to influence the loan and credit deciextended for good cause by the Board or by the sions or policies of Union and its bank subsidiary, Federal Reserve Bank of Atlanta, acting pursuant to the pricing of services, any personnel decision, the delegated authority. location of any officers, branching, the hours of By order of the Board of Governors, effective operation, or similar activities of Union and its bank November 30, 1992. subsidiary; (9) Dispose or threaten to dispose of shares of Union Voting for this action: Chairman Greenspan and Governors in any manner as a condition of specific action or Mullins, Angeil, Kelley, LaWare, Lindsey, and Phillips. nonaction by Union; (10) Enter into any other banking or nonbanking JENNIFER J. JOHNSON transactions with Union, except that Mansura may Associate Secretary of the Board establish and maintain deposit accounts with bank subsidiaries of Union, provided that the aggregate Appendix balances of all such accounts do not exceed $500,000 and that the accounts are maintained on As part of this proposal, Mansura has committed that substantially the same terms as those prevailing for it will not, without the Board's prior approval: comparable accounts of persons unaffiliated with (1) Exercise or attempt to exercise a controlling Union; or influence over the management or policies of Union (11) Seek or accept representation on the board of or its bank subsidiary; directors of Union. (2) Have or seek to have any employees or representative serve as an officer, agent or employee of ONBANCorp, Inc. Union or its bank subsidiary; Syracuse, New York (3) Take any action causing Union or its bank subsidiary to become a subsidiary of Mansura; Order Approving Merger of Bank Holding Companies ONBANCorp, Inc., Syracuse, New York ("Appli- 11. Commenters in this case have requested that the Federal cant"), a bank holding company within the meaning of Reserve Bank of Atlanta sponsor a meeting on the issues raised in their comments. Section 3(b) of the BHC Act does not require the the Bank Holding Company Act ("BHC Act"), has Board to hold a hearing on an application unless the appropriate applied for the Board's approval under section 3(a)(3) banking authority for the bank to be acquired makes a timely written recommendation of denial of the application. In this case, neither the of the BHC Act (12 U.S.C. § 1842(a)(3)) to acquire FDIC nor the State of Louisiana has recommended denial of the the voting shares of the following bank subsidiaries of proposal. Midlantic Corporation, Edison, New Jersey ("Midlan- Generally, under the Board's rules, the Board may, in its discretion, hold a public hearing or meeting on an application to clarify factual tic"): The Merchants National Bank and Trust Comissues related to the application and to provide an opportunity for pany of Syracuse, Syracuse, New York ("Merchants testimony, if appropriate. 12 C.F.R. §§ 262.3(e) and 262.25(d). The Bank"), and Union National Bank, Albany, New Board has carefully considered this request. In the Board's view, the commenters have had ample opportunity to present written submis- York ("Union Bank"). sions, and the commenters have submitted written comments that Notice of the application, affording interested perhave been considered by the Board. Further, the commenters have not identified facts that are material to the Board's decision and that sons an opportunity to submit comments, has been are in dispute. Therefore, the Board has determined that a public published (57 Federal Register 24,793 (1992)). The meeting or hearing is not necessary to clarify the factual record in this time for filing comments has expired, and the Board application, or otherwise warranted in this case, and the request for a public meeting or hearing on this application is denied. has considered the application and all comments re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

40 Federal Reserve Bulletin • January 1993 ceived in light of the factors set forth in section 3(c) of competition offered by other depository institutions in the BHC Act.1 the market, the number of competitors remaining in Applicant is the 21st largest commercial banking the market, the increase in concentration as measured organization in New York State, controlling deposits by the HHI, and the other facts of record, the Board of $1.4 billion, representing less than 1 percent of the has concluded that consummation of the proposal total deposits in commercial banking organizations in would not result in a significantly adverse effect on the state.2 Midlantic is the 15th largest commercial competition in the Syracuse or in any other relevant banking organization in New York State, controlling banking market. deposits of $2.2 billion in four commercial bank subsidiaries, representing less than 1 percent of the total Convenience and Needs Considerations deposits in commercial banks in the state. Union Bank controls deposits of $224.8 million, and Merchants In considering the convenience and needs of the Bank controls deposits of $704.6 million. Upon con- communities to be served by these institutions, the summation of the proposed transaction, Applicant Board has taken into account the record of Applicant would become the 16th largest commercial banking and its subsidiary bank, Onondaga Savings Bank, organization in the state, controlling approximately Syracuse, New York ("OnBank"),6 as well as Mer- 1 percent of total deposits in commercial banks in New chants Bank and Union Bank, under the Community York State. Reinvestment Act (12 U.S.C. § 2901 et seq.) Applicant and Midlantic compete directly in the ("CRA"). The CRA requires the federal financial Syracuse banking market.3 Applicant is the sixth larg- supervisory agencies to encourage financial instituest commercial banking or thrift organization ("depos- tions to help meet the credit needs of the local comitory institution") in the market, controlling $530.8 munities in which they operate consistent with the safe million in deposits, representing 7.2 percent of total and sound operation of such institutions. To accomdeposits held by depository institutions in the market plish this end, the CRA requires the appropriate fed- ("market deposits").4 Midlantic is the fifth largest eral supervisory authority to "assess the institution's depository institution in the market, controlling $703.2 record of meeting the credit needs of its entire commillion in deposits, representing 9.6 percent of market munity, including low- and moderate-income neighdeposits. Upon consummation of the proposed trans- borhoods, consistent with the safe and sound operaaction, Applicant would control deposits $1.76 billion, tion of such institution," and to take this record into representing 22.4 percent of deposits in the market. account in its evaluation of bank holding company The market would remain moderately concentrated, applications.7 and the Herfindahl-Hirschman Index ("HHI") would In connection with this application, the Board has increase by 234 points to 1301.5 After considering the received comments in favor of the proposal as well as comments opposed to this proposal. For example, the Mayor of Syracuse has supported OnBank's efforts 1. The Board received comments after the close of the comment under the CRA and requested the Board to approve period. Under the Board's Rules of Procedure ("Rules"), the Board this application. The Urban League of Onondaga may in its discretion take into consideration the substance of such County, Inc., the United Way of Central New York, comments. 12 C.F.R. 262.3(e). The Board also received several comments that were subsequently withdrawn during the processing of Inc., Junior Achievement of Central New York, Inc., this application. Food Bank of Central New York, and the Elmcrest 2. State deposit data are as of June 30,1992. Market deposit data are as of June 30, 1990. Children's Center have also submitted comments sup- 3. The Syracuse banking market is approximated by all of Cayuga, porting the proposal on the basis of OnBank's CRA- Onondaga, and Oswego Counties, and parts of Cortland and Madison related community development and lending activi- Counties. 4. Market share data are based on calculations in which the deposits ties. of thrift institutions are included at 50 percent. The Board previously has indicated that thrift institutions have become, or have the potential to become, significant competitors of commercial banks. See Midwest Financial Group, 75 Federal Reserve Bulletin 386 (1989); merger or acquisition generally will not be challenged (in the absence National City Corporation, 70 Federal Reserve Bulletin 743 (1984). of other factors indicating anticompetitive effects) unless the post- Applicant's deposits are included at 50 percent in the calculation of merger HHI is at least 1800 and the merger increases the HHI by more current market shares and at 100 percent in the calculation of pro than 200 points. The Justice Department has stated that the higher forma market shares. than normal HHI thresholds for screening bank mergers for anticom- 5. Under the revised Department of Justice Merger Guidelines, 49 petitive effects implicitly recognize the competitive effect of limited- Federal Register 26,823 (June 29, 1984), a market in which the purpose lenders and other non-depository financial entities. post-merger HHI is less than 1000 is considered unconcentrated, a 6. OnBank is a stock-form savings bank chartered under the law of market in which the post-merger HHI is between 1000 and 1800 is New York State with deposits insured by the FDIC's Bank Insurance considered moderately concentrated, and a market in which the Fund. Accordingly, OnBank is a "bank" within the meaning of post-merger HHI is above 1800 is considered to be highly concen- section 2(c) of the BHC Act. trated. The Justice Department has informed the Board that a bank 7. 12 U.S.C. § 2903. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 41 The Board has also received comments from the opment Corporation ("UDC"). Approximately $1 Concerned Citizens for Better Government ("Protes- million of OnBank's commercial loans made over the tant") opposing the application on the basis of Appli- past two years were made in participation with the cant's record of performance under the CRA. In SBA, and of that amount, 20 percent were in inner-city particular, Protestant challenges OnBank's refusal to census tracts. A $2.5 million loan was made with the approve its loan proposal.8 help of the JDA and UDC to a manufacturing company The Board has carefully reviewed the CRA perfor- employing over 100 people in an economically demance records of Applicant and Midlantic and their pressed region of the state. subsidiary banks, as well as all of the comments OnBank also assists in meeting the housing-related received and Applicant's responses to those com- credit needs of low- and moderate-income residents by ments, and all of the other relevant facts, in light of the offering loans through the FHA and the State of New CRA, the Board's regulations, and the Statement of York Mortgage Authority ("SONYMA"). For examthe Federal Financial Supervisory Agencies Regarding ple, as of the second quarter of 1992, OnBank's the Community Reinvestment Act ("Agency CRA portfolio contained $52 million in FHA/VA loans orig- Statement").9 inated by OnBank. OnBank is also a significant origi- Initially, the Board notes that OnBank received a nator of SONYMA loans which are directed princi- "satisfactory" rating for CRA performance from its pally to low- and moderate-income neighborhoods and primary supervisor, the Federal Deposit Insurance first-time homeowners by requiring a minimum down- Corporation, in its most recent examination for CRA payment of 3 percent. OnBank's portfolio contained performance as of February 1992.10 The Agency CRA $35 million of SONYMA mortgage loans originated by Statement provides that a CRA examination is an OnBank as of the second quarter of 1992. OnBank also important and often controlling factor in the consider- has provided financing for the renovation of a 25-unit ation of an institution's CRA record and that these multi-family housing project located in a low- to modreports will be given great weight in the applications erate-income area in Syracuse. process.11 Union Bank and Merchants Bank have also OnBank also has initiated several steps to improve each received satisfactory ratings from their primary its CRA-related lending record. These initiatives insupervisors in their most recent examinations for CRA clude providing $4 million in real estate mortgage loan performance. financing in low- and moderate-income neighborhoods CRA-Related Lending Activities. Several comment- over the next five years. In addition, OnBank will hire ers have submitted comments that reflect favorably on a bank officer to review all denied mortgage applicathe CRA-related lending activities of Applicant. The tions from low- and moderate-income borrowers, and Metropolitan Development Association of Syracuse designate an officer to coordinate marketing and outand Central New York (the "MDA"), for instance, reach efforts toward the inner-city community. Onhas commented that Applicant has been in the fore- Bank will also provide loans with no minimum loan front of supporting community business development amount to minority and low- and moderate-income and has assisted the MDA in its efforts to retain and suppliers for projects in low- and moderate-income attract small and mid-sized businesses to the central areas of Syracuse. New York area. Additional Elements of CRA Performance. Onbank OnBank began offering small business and commer- has in place the types of policies and procedures cial loans in 1990. In connection with its commercial outlined in the Agency CRA Policy Statement that lending, Onbank works with the Small Business Ad- contribute to effective CRA programs. For example, ministration ("SBA"), the New York State Jobs De- OnBank's board of directors annually reviews and velopment Authority ("JDA"), and the Urban Devel- approves the bank's CRA Statement, and the minutes of the board's meetings reflect the board's discussions of various CRA topics. OnBank also provides annual 8. Protestant also alleges that Applicant's deceptive practices CRA training to its branch managers and loan originaprevented Protestant from participating in discussions involving Applicant and a variety of community groups from June to August, 1992. tors. Applicant responds that it has met with Protestant's representative on OnBank ascertains the credit needs of its entire several occasions during May and August, 1992, and has exchanged community, including low- and moderate-income correspondence with Protestant regarding Protestant's proposals. 9. 54 Federal Register 13,732 (1989). neighborhoods, through a variety of existing programs 10. Protestant alleges without further specificity that OnBank has and community contacts. For example, OnBank has received 1500 complaints regarding declined credit applications. Apworked closely with Syracuse Neighborhood Housing plicant denies receiving this volume of such complaints. In addition, the most recent examination of OnBank found no evidence of illegal Services, Inc. ("SNHSI"). In addition, OnBank discriminatory or other illegal credit practices, and no evidence of works with a local group to provide home buyer's practices designed to discourage credit applications. seminars to those living in Syracuse's inner-city. 11. 54 Federal Register at 13,745. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

42 Federal Reserve Bulletin • January 1993 These seminars are designed to increase buyer aware- specifically conditioned on Applicant's compliance ness of residential mortgage lending. Ascertainment with the commitments made in connection with this efforts also are furthered through director and officer application. All of the commitments and conditions membership in local organizations such as the advis- relied upon by the Board in reaching its decision are ory group to the Comprehensive Housing Plan of conditions imposed in writing in connection with the Syracuse, the Syracuse Comprehensive Housing Af- Board's findings and decision and, as such, may be fordability Committee, and the Syracuse Consumer enforced in proceedings under applicable law. The Credit Counseling Services of Central New York, Inc. transaction approved in this Order shall not be con- OnBank also markets various specific credit and summated before the thirtieth calendar day following other financial products through several newspapers,12 the effective date of this Order, or later than three direct mail,13 and seminars in all areas of its commu- months after the effective date of this Order, unless nity, including low- and moderate- income areas. such period is extended for good cause by the Board or English and Spanish language brochures that describe by the Federal Reserve Bank of New York, acting the bank's services and hours of operation are avail- pursuant to delegated authority. able at the bank's branch locations. In addition, On- By order of the Board of Governors, effective Bank has reached an agreement to further its CRA- November 12, 1992. related activities in the Syracuse MSA with a coalition of community groups. Voting for this action: Chairman Greenspan and Governors Based on a review of the entire record of perfor- Kelley and Phillips. Absent and not voting: Governors Mullins, Angell, LaWare, and Lindsey. mance by OnBank, including information provided by the commenters and information contained in the CRA JENNIFER J. JOHNSON performance examination by OnBank's primary regu- Associate Secretary of the Board lator, the Board concludes that the convenience and needs considerations under the BHC Act, including Orders Issued Under Section 4 of the Bank the CRA performance records of the relevant banks, Holding Company Act are consistent with approval of this application. The financial and managerial14 resources and future Citicorp prospects of Applicant and Midlantic and their subsid- New York, New York iaries, and all other factors the Board is required to consider under section 3 of the BHC Act also are Order Approving Issuance and Sale of Variably consistent with approval of this proposal. Denominated Payment Instruments Based on the foregoing and other facts of record, the Board has determined that the application should be, Citicorp, New York, New York, a bank holding comand hereby is, approved.15 The Board's approval is pany within the meaning of the Bank Holding Company Act ("BHC Act"), has applied under section 4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8)) and 12. OnBank advertises in the following newspapers to reach lowand moderate-income neighborhoods: the Constitution, Onondaga section 225.23 of the Board's Regulation Y (12 C.F.R. Valley News, Heritage New Magazine and Pennysaver Scotsman 225.23), to engage directly and indirectly through its Press. These newspapers are distributed free to the public. subsidiary, Citicorp Services Inc. ("CSI"), in the 13. Since April 1992, OnBank has mailed approximately 9,000 letters to residents of low- and moderate-income census tracts that issuance and sale of variably denominated payment outline a variety of residential and consumer installment loan prod- instruments without limitation as to face value and ucts. without the reporting and reservable deposit require- 14. Protestant has alleged, without providing any evidence, that Applicant has violated provisions of law governing loans to officers ments previously imposed by the Board on issuers of and directors. The Board has considered these comments in light of all such instruments. the facts of record, including examination reports and other information provided by the primary regulators of OnBank and Applicant. On Notice of the application, affording an opportunity the basis of all the facts of record, the Board concludes that Protes- for interested persons to submit comments, has been tant's comments do not warrant denial of this application. 15. Protestant has requested that a hearing be held in connection with the issues raised in its comments. Section 3(b) of the BHC Act does not require the Board to hold a hearing on an application unless The Board has carefully considered this request. In the Board's view, the appropriate banking authority for the bank to be acquired makes a Protestant has had ample opportunity to present written submissions, timely written recommendation of denial of the application. In this and Protestant has submitted written comments that have been case, the Office of the Comptroller of the Currency has not recom- considered by the Board. In light of these submissions and all of the mended denial of the proposal. facts of record, the Board has determined that a public meeting or Generally, under the Board's Rules, the Board may, in its discre- hearing is not necessary to clarify the factual record in this application, hold a public hearing or meeting on an application to clarify tion, or is otherwise warranted in this case. Accordingly, the request factual issues related to the application and to provide an opportunity by Protestant for a public meeting or hearing on this application is for testimony, if appropriate. 12 C.F.R. §§ 262.3(e) and 262.25(d). hereby denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 43 published (55 Federal Register 42,896 (1990)). The In approving proposals involving payment instrutime for filing comments has expired, and the Board ments with no maximum limitation on the face has considered the application and all comments re- amount, the Board has imposed certain reporting and ceived in light of the factors set forth in section 4(c)(8) other requirements designed to mitigate the potential of the BHC Act. adverse effects that the activity may have on the Citicorp controls total consolidated assets of ap- reserve base and the calculation of certain monetary proximately $219.3 billion and is the largest bank aggregates and consequently on the effective execuholding company in the United States. Citicorp also tion of monetary policy.4 These requirements include engages in a variety of nonbanking activities. In this maintaining in a demand deposit account the total application, Citicorp seeks permission to issue and sell proceeds of any official check having a face value in variably denominated payment instruments without excess of $10,000 until the respective payment instrulimitation as to face value in order to reorganize its ment is paid, and submitting weekly reports of daily existing payment instrument-related activities. Citi- data showing the aggregate amount of all outstanding corp previously received approval under section instruments.5 4(c)(8) of the BHC Act to issue, directly and through The Board has amended its Regulation D effective CSI, variably denominated payment instruments with December 22, 1992, to impose reserve requirements a face value of up to $10,000.1 Citicorp currently on teller's checks. Teller's checks are payment inprovides payment instruments in denominations over struments that are drawn by a depository institution $10,000 through its bank subsidiary, Citibank (New and are similar to cashier's checks for purposes of York State) ("Citibank NY"). This application would state commercial laws and the Board's Regulation permit Citicorp and its subsidiary, CSI, to provide CC, Availability of Funds and Collection of Checks.6 payment instruments without limitation as to face However, teller's checks were not generally subject value. to reserve requirements. The Board's notice amend- The Board has by regulation determined that the ing Regulation D stated that bank holding companies issuance and sale of money orders and other similar that have received approval to issue and sell variably consumer-type payment instruments with a face value denominated payment instruments subject to the not exceeding $1,000 is an activity that is closely demand deposit requirement, reporting requirement, related to banking for purposes of section 4(c)(8) of the or limits on the denomination of payment instru- BHC Act, and is therefore a permissible activity for ments could request relief from these conditions.7 bank holding companies.2 The Board has also deter- The Board believes that the changes it has adopted mined by order that the issuance and sale of official to Regulation D will more effectively and directly checks, including teller's checks, with no maximum address the concern that the issuance and sale of large limitation on the face amount of the check, is an denomination payment instruments may result in the activity closely related to banking and permissible for adverse effect of eroding the reserve base. Accordbank holding companies.3 ingly, the Board believes that the adverse effect of In order to approve this application under section erosion of the reserve base is addressed by the Regu- 4(c)(8), the Board must also find that Citicorp's per- lation D revisions, and consequently that the special formance of the proposed activity could "reasonably reporting and demand deposit requirements previously be expected to produce benefits to the public, such as imposed by the Board in connection with approvals to greater convenience, increased competition, or gains engage in the issuance and sale of variably denomiin efficiency, that outweigh possible adverse effects, nated payment instruments in amounts over $10,000 such as undue concentration of resources, decreased are no longer needed. As a result, the Board has or unfair competition, conflicts of interests, or un- determined not to impose these requirements and to sound banking practices." 12 U.S.C. § 1843(c)(8). 1. Citicorp, 71 Federal Reserve Bulletin 58 (1985). The provision of 4. Hong Kong and Shanghai Banking Corporation, 73 Federal payment instrument services of the type covered by this Order Reserve Bulletin 808 (1987); Wells Fargo & Company, 72 Federal generally involves the bank holding company acting as drawee on the Reserve Bulletin 148 (1986). instrument, providing the check stock, collecting and investing the 5. The Board imposed the reporting requirements on Applicants proceeds of payment instrument sales, and performing reconcilement who proposed to issue and sell payment instruments in denominations and other accounting services. For some instruments, CSI acts as over $1,000. See BankAmerica Corporation, 70 Federal Reserve drawer for payment instruments drawn on Citicorp, executed by other Bulletin 364 (1984). depository institutions as CSI's agent, and sold by these other 6. 12 C.F.R. Part 229. depository institutions to their customers. 7. Relief from these conditions may be sought by letter if the bank 2. 12 C.F.R. 225.25(b)(12). holding company has already obtained Board approval under section 3. See, e.g., Wells Fargo & Company, 72 Federal Reserve Bulletin 4(c)(8) of the BHC Act to issue and sell variably denominated payment 148 (1986). instruments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

44 Federal Reserve Bulletin • January 1993 grant Citicorp's request for relief from the reporting Based on all the facts of record, including the requirement to which it is currently subject. commitments made by Applicant, and subject to all of The Board has received comments from several the terms and conditions set forth in this Order, the customers of Citicorp urging approval of this applica- Board has determined that the application should be, tion based principally on the perception that nonbank and hereby is, approved. Approval of this proposal is competitors of Citicorp had an unfair advantage be- specifically conditioned on compliance by Citicorp cause they were not subject to the same reserve with the commitments made in connection with its requirements as Citicorp and other bank holding com- application, as supplemented, and with the conditions panies conducting this activity. These commenters sug- referenced in this Order. The Board's determination gested that the costs associated with reserve require- also is subject to all of the conditions set forth in ments might encourage Citicorp to withdraw from this Regulation Y, including those in sections 225.4(d) and activity, leaving a more concentrated market for certain 225.23(b), and to the Board's authority to require variably denominated payment instruments. modification or termination of the activities of a bank The Board also received comments from American holding company or any of its subsidiaries as the Express Information Services Company ("Protes- Board finds necessary to assure compliance with, and tant"), which is a competitor of Citicorp in the payment to prevent evasion of, the provisions of the BHC Act instrument market. Protestant stated that Citicorp had and the Board's regulations and orders issued therenot demonstrated that the public benefits resulting from under. The commitments and conditions relied on in this activity would outweigh possible adverse effects. reaching this decision are conditions imposed in writ- Protestant argued that Citicorp had advantages over ing by the Board in connection with its findings and Protestant in the provision of these payment instru- decision and may be enforced in proceedings under ments due to Citicorp's ownership of a bank. Protestant applicable law. asserted, for instance, that Federal Deposit Insurance Because the amendments to Regulation D are not Corporation ("FDIC") insurance is available to pay- effective until December 22, 1992, the relief provided ment instruments issued by Citibank NY. Protestant by this Order from previously imposed reporting refurther asserted that Citibank NY's status as a bank quirements and limitations on the face value of payment exempts it from various state laws regulating the invest- instruments shall not be effective before December 22, ment of the proceeds of payment instruments to which 1992. Moreover, the reorganization of Citicorp's pay- Protestant is subject. The Board notes, however, that ment instrument services related to this Order may not Citicorp's present proposal is to allow Citicorp and a be completed later than three months after December nonbank subsidiary of Citicorp to engage in the issu- 22,1992, unless such period is extended for good cause ance and sale of payment instruments. Moreover, the by the Board or by the Federal Reserve Bank of New amendments adopted to Regulation D apply to all York, pursuant to delegated authority. providers of teller's checks in the same manner. As a By order of the Board of Governors, effective result, following this proposed transaction, Citicorp November 12, 1992. and Protestant should be able to compete in the payment instrument market on a more equitable footing. Voting for this action: Chairman Greenspan and Governors Consistent with its findings in several previous orders,8 Kelley and Phillips. Absent and not voting: Governors Mullins, Angell, LaWare, and Lindsey. the Board finds that the record in this case reflects that the provision of this service in general would increase com- JENNIFER J. JOHNSON petition in the provision of these services, provide greater Associate Secretary of the Board convenience for purchasers, and generally make these instruments more readily available to the public. The Orders Issued Under Sections 3 and 4 of the reorganization of Citicorp's payment instrument business Bank Holding Company Act should also result in greater operating efficiencies for Citicorp, and greater convenience to its customers. The record does not indicate that the proposal would result in Barnett Banks, Inc. adverse effects such as undue concentration of resources, Jacksonville, Florida decreased or unfair competition, conflicts of interests, or unsound banking practices that would outweigh these Order Approving the Acquisition of Bank Holding public benefits. Companies and the Merger of Banks Barnett Banks, Inc., Jacksonville, Florida ("Bar- 8. Hong Kong and Shanghai Banking Corporation, 73 Federal nett"), a bank holding company within the meaning of Reserve Bulletin 808 (1987); Wells Fargo & Company, 72 Federal Reserve Bulletin 148 (1986). the Bank Holding Company Act ("BHC Act"), has Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 45 applied for the Board's approval under section 3 of the eral Deposit Insurance Corporation ("FDIC"). The BHC Act (12 U.S.C. § 1842) to acquire 7L Corpora- time for filing comments has expired, and the Board tion and First Florida Banks, Inc. (together, "First has considered the applications and all comments Florida"), and thereby acquire First Florida Bank, received in light of the factors set forth in sections 3(c) N.A., all of Tampa, Florida ("Bank").1 and 4(c)(8) of the BHC Act, the Bank Merger Act, and In connection with this transaction, certain state the Federal Reserve Act.5 member bank subsidiaries of Barnett also have applied under the Bank Merger Act (12 U.S.C. § 1828(c)) to Competitive Effects purchase certain assets and assume certain liabilities of Bank.2 These banks also have applied to establish Barnett, with approximately $32.4 billion in conadditional branches and make additional investments solidated assets, controls a total of 33 banking subsidin bank premises under section 9 and section 24A of iaries, located in Florida and Georgia.6 Barnett is the Federal Reserve Act (12 U.S.C. §§ 321 and the largest commercial banking organization in Flor- 371d).3 ida, controlling deposits of $27.8 billion, representing Barnett also has applied under section 4(c)(8) of the 23.3 percent of the total deposits in commercial bank- BHC Act (12 U.S.C. § 1843(c)(8)) to acquire: ing organizations in the state.7 First Florida is the (1) FFB Insurance Agency, Inc., Tampa, Florida fifth largest commercial banking organization in Flor- ("FFB"), and thereby engage in the sale of credit- ida, controlling deposits of $5.0 billion, representing related insurance pursuant to 12 C.F.R. 4.2 percent of the total deposits in commercial bank- 225.25(b)(8); and ing organizations in the state. Upon consummation of (2) First Florida's shares in the Southeast Switch, the proposed transaction, Barnett would remain the Inc., Maitland, Florida ("Switch"), and thereby largest commercial banking organization in Florida, continue to engage in providing data processing and controlling deposits of $32.8 billion, representing transmission services pursuant to 12 C.F.R. 27.5 percent of the total deposits in commercial bank- 225.25(b)(7), and bank management consulting ad- ing organizations in the state. vice to depository institutions pursuant to 12 C.F.R. Barnett and First Florida compete directly in four- 225.25(b)(ll).4 teen banking markets in Florida. In eight of these markets, the increases in the Herfindahl-Hirschman Notice of the applications, affording interested per- Index ("HHI") would not exceed the threshold stansons an opportunity to submit comments, has been dards applied by the Board and set forth in the published (57 Federal Register 30,738 (1992)). As Department of Justice's revised guidelines8 after conrequired by the Bank Merger Act, reports on the sidering the competition offered by thrift institutions.9 competitive effects of the merger were requested from the United States Attorney General, the Office of the Comptroller of the Currency ("OCC"), and the Fed- 5. The Board received certain written comments filed after the close of the comment period. Under the Board's rules, the Board may in its discretion take into account the substance of such comments, and the 1. 7L Corporation is a shell corporation controlling approximately Board has considered these comments as part of the record in this 35 percent of the outstanding voting shares of First Florida Banks, proposal. 12 C.F.R. 262.3(e). Inc. In connection with this transaction, First Florida granted to 6. Total consolidated assets are as of June 30, 1992. Barnett an option to acquire approximately 19.9 percent of the 7. Deposit data are as of December 31, 1991, except as noted. outstanding common stock of First Florida Banks, Inc., and Barnett 8. Under the revised Department of Justice Merger Guidelines, 49 has applied to exercise this option if any of several preconditions Federal Register 26,823 (June 29, 1984), a market in which the occur. This option will become moot upon consummation of Barnett's post-merger HHI is above 1800 is considered to be highly concenproposal to acquire First Florida. trated. In such markets, the Justice Department is likely to challenge 2. These banks are: Barnett Bank of Highlands County, Sebring, a merger that increases the HHI by more than 50 points. The Justice Florida; Barnett Bank of Naples, Naples, Florida; Barnett Bank of Department has informed the Board that a bank merger or acquisition Pasco County, Holiday, Florida; Barnett Bank of Pinellas County, generally will not be challenged (in the absence of other factors St. Petersburg, Florida; Barnett Bank of Polk County, Lakeland, indicating anti-competitive effects) unless the post-merger HHI is at Florida; Barnett Bank of Southwest Florida, Sarasota, Florida; Bar- least 1800 and the merger or acquisition increases the HHI by at least nett Bank of Tallahassee, Tallahassee, Florida; Barnett Bank of 200 points. The Justice Department has stated that the higher than Volusia County, Deland, Florida; and Barnett Bank of West Florida, normal threshold for an increase in HHI when screening bank mergers Pensacola, Florida (together, "merging banks"). Barnett also has and acquisitions for anti-competitive effects implicitly recognizes the applied under the Bank Merger Act for approval by the Office of the competitive effect of limited-purpose lenders and other non-deposi- Comptroller of the Currency for its national bank subsidiaries to tory financial entities. acquire certain assets and assume certain liabilities of Bank. 9. The Board previously has indicated that thrift institutions have 3. The proposed additional branch locations are listed in the become, or have the potential to become, major competitors of Appendix to this Order. commercial banks. See Midwest Financial Group, 75 Federal Reserve 4. First Florida owns 7.5 percent of the shares of Switch, and this Bulletin 386 (1989); National City Corporation, 70 Federal Reserve proposal would increase Barnett's share ownership to 22.5 percent. Bulletin 743 (1984). Thus, the Board has regularly included thrift Switch is a joint venture ATM network operator owned by bank deposits in the calculation of market share on a 50 percent weighted holding companies, savings associations, and credit unions. basis. See, e.g., First Hawaiian, Inc., 77 Federal Reserve Bulletin 52 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

46 Federal Reserve Bulletin • January 1993 In light of these facts, and after considering the num- Citrus County banking market,13 controlling deposits ber of competitors remaining in the markets, the of $387.2 million, representing 32.9 percent of market increase in market concentration, the attractiveness of deposits, and the HHI would increase by 539 points to these markets for entry of new competitors, and the 2302.14 Barnett has committed to divest two branches other facts of record, the Board has concluded that in the Citrus County banking market which, as of consummation of the proposal would not result in a June 30, 1991, account for $30 million of deposits, and significantly adverse effect on competition in these loans associated with those deposits, to an out-ofeight banking markets: Fort Myers, Naples, North market competitor. Following this divestiture, Barnett Lake-Sumter, Orlando, Pensacola, Polk County, would become the second largest depository institu- Sarasota, and the Tampa Bay area. tion in the market, with $357.2 million in deposits, The remaining banking markets in which Barnett representing 30.3 percent of market deposits, and the and First Florida compete include Highlands County, HHI would increase by 384 points to 2147. Citrus County, Daytona Beach, Brevard County, Tal- The Board believes that several factors mitigate any lahassee, and Port Charlotte. Although the consum- anti-competitive effects in the Citrus County banking mation of this proposal would result in an increase in market after accounting for the proposed divestitures. the HHI that exceeds the Department of Justice Thirteen depository institutions would remain in the Merger Guidelines in each of these markets, the Board market. The market also has a number of features that does not believe that these increases in concentration make it attractive for entry. For example, the market levels would result in significantly anticompetitive is the fifth largest among 35 non-MSA counties in effects for the reasons discussed below. Florida, based on deposits, and has grown faster than the average for these counties. Population growth Highlands County and Citrus County Banking from 1980 to 1990 was third highest among non-MSA Markets counties. One commercial bank and one thrift institution have entered the market de novo since 1988. Upon consummation of this proposal,10 Barnett would remain the largest bank or thrift organization ("depos- Remaining Florida Banking Markets itory institution") in the Highlands County banking market,11 controlling total deposits of $441.2 million, Daytona Beach. Barnett is the second largest deposirepresenting 50.4 percent of total deposits in deposi- tory institution in the Daytona Beach banking martory institutions in the market ("market deposits"). ket,15 controlling deposits of $614.7 million, represent- The pro forma HHI would increase by 577 points to ing 19.5 percent of market deposits. First Florida is the 2936. In order to mitigate potential adverse competi- fourth largest depository institution in the market, tive effects, Barnett has committed to divest the only with $232.7 million in deposits, representing 7.4 per- First Florida branch to be acquired in this market, and cent of market deposits. Upon consummation, Barnett accordingly, consummation of this proposal would not would remain the market's second largest depository affect competition in the Highlands County market.12 institution, with deposits of $847.4 million, represent- Upon consummation of this proposal, Barnett ing 26.9 percent of market deposits, and the HHI would become the largest depository institution in the would increase by 288 points to 2328.16 Eight commercial banks, and five thrift institutions with a total of $711.7 million in deposits and 17.7 percent of market deposits, would remain in the market upon consummation of the proposal. The largest depository institu- (1991). In considering the competition offered by thrifts in all banking markets in this case, thrift deposits are weighted at 50 percent. 10. Barnett is currently the largest depository institution in the market, controlling deposits of $383.7 million, representing 43.9 percent of market deposits; and First Florida is the fifth largest depository institution in the market, controlling deposits of 13. The Citrus County banking market comprises Citrus County, $57.5 million, representing 6.6 percent of market deposits. less Citrus Springs. 11. The Highlands County banking market comprises Highlands 14. Barnett currently controls deposits of $183.6 million, represent- County. ing 15.6 percent of market deposits, and is the third largest depository 12. For all divestiture commitments relied upon by the Board, institution. First Florida, with deposits of $203.6 million, representing Barnett has committed, prior to consummation of the proposal, to 17.3 percent of market deposits, is the second largest depository enter into binding agreements with third party purchasers of the institution in the market. branches to be divested and to attempt to complete the divestitures 15. The Daytona banking market is approximated by the eastern within 6 months after consummation of the proposal. If Barnett is half of Volusia County, and includes Daytona Beach, Daytona Beach unable to complete the divestitures within this time, it will transfer the Shores, Holly Hill, Ormond Beach, Ormond-by-the-Sea, Port Orange, branches that are not divested to an independent trustee with instruc- South Daytona, Allandale, New Smyrna, and Edgewater. tions to sell the branches promptly. See, e.g., Integra Financial 16. Deposit data are as of June 30, 1992. Data as of December 31, Corporation, 78 Federal Reserve Bulletin 623, 624 n.9 (1992); First 1991, for the Daytona Beach banking market show that the HHI would Hawaiian, Inc., supra. have increased by 229 points to 2899. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 47 tion in the banking market would retain 36.5 percent of 11.2 percent of market deposits. Upon consummation, market deposits. Barnett would remain the largest banking organization Brevard County. Barnett is the second largest de- in the market, with deposits of $476.5 million, reprepository institution, controlling $757.8 million in de- senting 32.9 percent of market deposits, and the HHI posits, representing 22.3 percent of market deposits in would increase by 486 point to 1849. Eight commercial the Brevard County banking market.17 First Florida is banks and eleven thrift institutions would remain in the fifth largest depository institution in the market, the Port Charlotte banking market upon consummawith deposits of $312.7 million, representing 9.2 per- tion of the proposal. cent of market deposits. Upon consummation, Barnett In each of these markets, at least 12 depository would become the largest depository institution in the institutions with significant market share will remain in market, with deposits of $1.1 billion, representing the market following consummation, including subsid- 31.6 percent of market deposits, and the HHI would iaries of some of the largest depository organizations increase by 412 points to 1931. Ten commercial banks, operating in the state. In addition, each of these and five thrift institutions with a total of $685.4 million banking markets has characteristics that indicate that in deposits and 18.4 percent of market deposits, would these markets are attractive for entry by competitors. remain in the market. Credit unions have an unusually Some of these markets exhibit strong growth rates in large percentage of market deposits,18 and two of the population,22 and in deposits.23 Other markets have three credit unions in the market have deposits of over populations with higher than average income24 and $100 million and broad eligibility requirements.19 residents per banking office.25 The Board also has Tallahassee. In the Tallahassee banking market,20 considered that each of these markets has experienced Barnett is the second largest depository institution, de novo entry of commercial banks within the last five controlling deposits of $368.3 million, representing years.26 20.6 percent of market deposits. First Florida is the The Board also has sought comments from the fourth largest depository institution in the market with United States Attorney General, the OCC, and the $165.9 million in deposits, representing 9.3 percent of FDIC on the competitive effects of the proposal. The market deposits. Upon consummation, Barnett would Attorney General has indicated that, subject to the become the largest depository institution in the mar- fulfillment by Barnett of the divestiture commitments ket, with deposits of $534.2 million, representing it has made to the Board in connection with this 29.9 percent of market deposits, and the HHI would proposal, there would be no significantly adverse increase by 383 points to 1871. Ten commercial banks effects on competition in any relevant banking market. and two thrift institutions would remain in the Talla- Neither the OCC nor the FDIC has provided any hassee banking market upon consummation of the objection to consummation of the proposal or indiproposal. cated that the proposal would have any significantly Port Charlotte. Barnett is the largest depository adverse competitive effects. institution in the Port Charlotte banking market,21 Based on all the facts of record in this case, controlling deposits of $314.6 million, representing including Barnett's divestiture commitments and the 21.7 percent of the market deposits. First Florida is the market characteristics discussed above, the Board fourth largest depository institution in the market, with deposits of $161.9 million, representing 22. Between 1980 and 1990, population grew at an annual compound rate of 3.66 percent in the Daytona Beach MSA and 3.87 percent in the Brevard County MSA, compared to 2.94 percent in all Florida MSAs. 17. The Brevard County banking market comprises Brevard The comparable rates of growth were 6.62 percent in Charlotte County. County and 3.43 percent in all Florida non-MSA counties. 18. Credit unions in the Brevard County banking market control 23. Between 1988 and 1991, total commercial bank deposits grew at 9.7 percent of market deposits, compared with an average of 4.7 an annual compound rate of 6.6 percent in the Daytona Beach banking percent nationwide. market, 4.25 percent in the Brevard County banking market, and 11.18 19. Space Coast Credit Union and Kennedy Space Center Federal percent in the Tallahassee banking market, compared to 2.81 percent Credit Union have 94,200 members in a market that has a population in all Florida MSAs. The comparable annual rates of growth were of approximately 399,900. Membership in these two credit unions is 6.45 percent in the Port Charlotte banking market and 5.43 percent in available to employees of the Kennedy Space Center, employees of all Florida non-MSA counties. primary and secondary contractors associated with the aerospace 24. Per capita income in 1990 was $15,755 in the Brevard County industry, and their relatives. Approximately 30 percent of Brevard MSA, compared to $15,671 in all Florida MSAs, and $15,267 in County's work force is employed in the aerospace industry, and seven Charlotte County, compared to $12,729 in all Florida non-MSA of the ten largest employers in Brevard County are affiliated with the counties. aerospace industry. 25. There were 3,894 persons per banking office in 1990 in the 20. The Tallahassee banking market comprises Leon County and Tallahassee banking market, compared to 3,751 persons per banking the eastern half of Gadsden County, including Quincy and Havana. office in all Florida MSAs. 21. The Port Charlotte banking market comprises Charlotte County 26. Since 1987, commercial banks have entered these banking (less Englewood and Rotonda West) and North Port in Sarasota markets as follows: two in Daytona Beach, three in Brevard County, County. and four each in Tallahassee and Port Charlotte. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

48 Federal Reserve Bulletin • January 1993 concludes that consummation of the proposal would and 24A of the Federal Reserve Act. The Board finds not have a significantly adverse effect on competition those factors to be consistent with approval. or the concentration of banking resources in any Barnett also has applied under section 4(c)(8) of relevant banking market.27 Barnett must provide the the BHC Act to acquire the nonbanking subsidiaries Federal Reserve Bank of Atlanta with details regard- of First Florida noted above. The Board has detering the proposed purchaser, prior to consummating mined by regulation that each of the activities of these divestitures, in order that the Reserve Bank these companies is closely related to banking and may ensure that the divestitures comply with this generally permissible for bank holding companies Order. under section 4(c)(8) of the BHC Act. Barnett will conduct these activities in accordance with the Other Considerations Board's regulations. Barnett operates a subsidiary engaged in credit- The Board also concludes that the financial and man- related insurance activities similar to those conducted agerial resources and future prospects of Barnett and by FFB. The market for these services is unconcen- First Florida, and their subsidiary banks, and the other trated and there are numerous providers of these supervisory factors the Board must consider under the services. Barnett also proposes to increase its owner- BHC Act and the Bank Merger Act are consistent with ship in Switch to 22.5 percent. In this regard, the approval.28 In addition, the Board has considered the Board notes that the other participants in Switch factors it is required to consider when approving would retain control over the expansion of their own applications for the establishment of branches and electronic funds transfer ("EFT") networks, the pricinvestments in bank premises pursuant to sections 9 ing and selection of EFT services they offer, and the placement of EFT devices, and thus could continue to compete with Barnett and other shareholders of Switch in the operation of EFT networks. In addition, the terms of the agreements between Switch and its 27. The Board has carefully considered several comments from individuals ("Protestants") regarding the competitive effects of this participants permit all participants to join other proposal in particular banking markets as well as comments generally switching networks. Accordingly, the Board conalleging that the proposal would result in substantially anticompetitive effects in Florida, especially in central and northern Florida. Protes- cludes that consummation of the proposal would not tants believe that the lessening of competition resulting from this have a significantly adverse effect on the provision of proposal will have the effect of increasing costs to the public, reducing EFT services in any relevant market. available products and services (including interest income paid on deposits), restricting the availability of credit for small businesses, There is no evidence in the record to indicate that increasing the barriers to entry by new competitors into the markets approval of the proposed acquisition of shares in any served by Barnett and First Florida, decreasing the actual and potential competitive ability in the future of Barnett and First Florida of the nonbanking companies of First Florida would in the Florida market, and generally fail to produce any public result in any significantly adverse effects, such as benefits. undue concentration of resources, decreased or unfair The Board continues to believe that the appropriate geographic market for reviewing the competitive effects of bank acquisition competition, conflicts of interests, or unsound banking proposals is local in nature. See, e.g., First Hawaiian, Inc., supra-, practices that are not outweighed by public benefits. United States v. Philadelphia National Bank, 374 U.S. 321 (1963). Accordingly, the Board has determined that the bal- Based on the facts of record, and for the reasons discussed in this Order, the Board concludes that this proposal would not substantially ance of public interest factors that the Board must lessen competition for banking services, or result in an undue concen- consider under section 4(c)(8) of the BHC Act is tration of resources, in any relevant banking market. 28. One Protestant has requested that the Board hold a public favorable and consistent with approval. hearing on this application for the purpose of eliciting additional Based on the foregoing and other factors of record, information on the effect of the proposal on the future structure of the including the commitments made by Barnett in conbanking industry in Florida. The Board is not required under section 3 of the BHC Act to hold a public hearing unless the primary nection with these applications, the Board has detersupervisor for the bank to be acquired does not approve the proposal. mined that the applications should be, and hereby are, In this case, the primary supervisor for Bank has not objected to the approved. The Board's approval of this proposal is proposal. Under its rules, the Board may, in its discretion, hold a public specifically conditioned on compliance with all of the hearing on an application to clarify factual issues related to the commitments made in connection with these applicaapplication and to provide an opportunity for testimony, if appropritions and with the conditions referenced in this Order. ate. 12 C.F.R. 262.3(e). The Board has carefully considered Protestant's request, and the written comments submitted by Protestant. The determinations as to Barnett's nonbanking activ- The Protestant has indicated general disagreement regarding the ities are also subject to all the conditions contained in appropriate conclusions to be drawn from the facts of record, but has not identified facts that are material to the Board's decision and that the Board's Regulation Y, including those in sections are in dispute. In light of this, the Board has determined that a public 225.4(d) and 225.23(b)(3) (12 C.F.R. 225.4(d) and hearing is not necessary to clarify the factual record in these applica- 225.23(b)(3)), and to the Board's authority to require tions, or otherwise warranted in this case. Accordingly, this request for a public hearing on this application is hereby denied. such modification or termination of the activities of a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 49 holding company or any of its subsidiaries as it finds Barnett Bank of West Florida necessary to assure compliance with, or prevent evasions of, the provisions and purposes of the BHC Act (1) 5041 Bayou Blvd., Pensacola, Florida and the Board's regulations and orders issued there- (2) 600 W. Garden Street, Pensacola, Florida under. For purposes of this action, the commitments (3) 8171 N. Davis Highway, Pensacola, Florida and conditions relied on in reaching this decision are both conditions imposed in writing by the Board and, Barnett Bank of Highlands County as such, may be enforced in proceedings under applicable law. The banking acquisitions approved in this (1) Main Street & Interlake, Lake Placid, Florida Order shall not be consummated before the thirtieth calendar day following the effective date of this Order, Barnett Bank of Tallahassee and the proposed banking and nonbanking acquisitions shall not be consummated later than three months (1) 24 N. Adams Street, Quincy, Florida after the effective date of this Order, unless such (2) 1321 W. Jefferson Street, Quincy, Florida period is extended for good cause by the Board or the (3) 215 S. Monroe Street, Tallahassee, Florida Federal Reserve Bank of Atlanta, pursuant to dele- (4) 803 Lake Bradford Road, Tallahassee, Florida gated authority. (5) 3425 Thomasville Road, Tallahassee, Florida By order of the Board of Governors, effective (6) 3102 Mahan Drive, Tallahassee, Florida October 28, 1992. Barnett Bank of Pasco County Voting for this action: Vice Chairman Mullins and Governors Angell, Kelley, LaWare, Lindsey, and Phillips. Absent (1) 4041 Rowan Road, New Port Richey, Florida and not voting: Chairman Greenspan. (2) 6901 S.R. 52, Bayonet Point, Florida (3) 21744 S.R. 54, Lutz, Florida JENNIFER J. JOHNSON (4) 4807 U.S. Highway 19, New Port Richey, Florida Associate Secretary of the Board (5) 8939 Little Road, New Port Richey, Florida Appendix Barnett Bank of Pinellas County (1) 55 Fifth St. South, St. Petersburg, Florida The following subsidiary banks of Barnett have ap- (2) 2116 4th St. North, St. Petersburg, Florida plied pursuant to section 9 of the Federal Reserve Act (3) 716 - 9th Street N., St. Petersburg, Florida to establish branches at the following locations: (4) 1135 - 62nd Avenue N., St. Petersburg, Florida (5) 289 - 34th Street, St. Petersburg, Florida Barnett Bank of Southwest Florida (6) 1001 West Bay Drive, Largo, Florida (7) 1499 Gulf to Bay Blvd., Clearwater, Florida (8) 600 Cleveland Street, Clearwater, Florida (1) 126 E. Olympia Avenue, Punta Gorda, Florida (9) 455 U.S. 19 North, Palm Harbor, Florida (2) 3115 Harbor Blvd., Port Charlotte, Florida (10) 9111 Oakhurst Plaza, Seminole, Florida (3) 2200 Kings Highway, Port Charlotte, Florida (11) 1911 N. Belcher Road, Clearwater, Florida (4) 3300 North Tamiami Trail, Sarasota, Florida (12) 423 Mandalay Avenue, Clearwater, Florida (5) 3602 Weber Road, Sarasota, Florida (13) 1478 Main Street, Dunedin, Florida (6) 326 John Ringling Blvd., Sarasota, Florida (14) 122 Island Way, Clearwater, Florida (7) 440 Gulf of Mexico Drive, Longboat Key, Florida (15) 2145 - 34th St. N., St. Petersburg, Florida (8) 304 West Venice Avenue, Venice, Florida (16) 2091 U.S. 19 North, Clearwater, Florida (9) 1729 S. Tamiami Trail, Venice, Florida (17) 12020 Seminole Blvd., Seminole, Florida (10) 1800 2nd Street, Sarasota, Florida (18) 1499 Belcher Road, Largo, Florida (11) 1306 E. Venice Avenue, Venice, Florida (19) 3399 - 66th St. North, St. Petersburg, Florida (12) 5950 S. Beneva Road, Sarasota, Florida (20) 4441 Park Blvd., Pinellas Park, Florida (21) 201 - 150th Avenue, Madiera Beach, Florida Barnett Bank of Naples (22) 2201 Drew Street, Clearwater, Florida (23) 125 Indian Rocks Road, Belleair Bluffs, Florida (1) 1001 N. Collier Blvd., Marco Island, Florida (24) 200 Oakleaf Blvd., Oldsmar, Florida (2) 4099 Tamiami Trail North, Naples, Florida (25) 7500 Gulf Blvd., St. Petersburg, Florida (3) 50 Bald Eagle Drive, Marco Island, Florida (26) 4105 Gulf Blvd., St. Petersburg, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

50 Federal Reserve Bulletin • January 1993 (27) 2250 South 62nd Avenue, St. Petersburg, Florida (1) Marquette Information Services, Inc. ("MIS"), and thereby engage in data processing services (28) 6900 North 22nd Avenue, St. Petersburg, Florida pursuant to section 225.25(b)(7) of the Board's Regulation Y; and Barnett Bank of Polk County (2) Marquette Insurance Agency, Inc. ("MIA"), and thereby engage in general insurance agency (1) 2211 S. Florida Avenue, Lakeland, Florida activities pursuant to section 4(c)(8)(G) of the BHC (2) 4975 South Florida Avenue, Lakeland, Florida Act and section 225.25(b)(8)(vii) of the Board's (3) 3305 Lakeland Hills Blvd., Lakeland, Florida Regulation Y, 12 U.S.C. § 1843(c)(8)(G); 12 C.F.R. (4) 2124 Harden Blvd., Lakeland, Florida 225.25(b)(8)(vii).3 (5) 150 Third St. S.W., Winter Haven, Florida (6) 3010 Cypress Gardens, Winter Haven, Florida Notice of the applications, affording interested per- (7) 1011 State Road 540A, Lakeland, Florida sons an opportunity to submit comments, has been (8) 222 E. Lemon Street, Lakeland, Florida published (57 Federal Register 39,203 (1992)). The Barnett Bank of Volusia County time for filing comments has expired, and the Board has considered the application and all comments re- (1) 200 E. Granada Avenue, Ormond Beach, Florida ceived in light of the factors set forth in sections 3(c) (2) 4 North Beach Street, Ormond Beach, Florida and 4 of the BHC Act. (3) 75 North Nova Road, Ormond Beach, Florida FBS, with total consolidated assets of $17.8 billion, (4) 200 S. Palmetto Avenue, Daytona Beach, Florida operates 24 subsidiary banks in seven states.4 FBS is (5) 111 N. Causeway, New Smyrna Beach, Florida the second largest commercial banking organization in (6) 3640 S. Atlantic Ave., Daytona Beach Shores, Minnesota, controlling deposits of $9.3 billion, repre- Florida senting 20.8 percent of total commercial bank deposits (7) 1130 Pelican Bay, Daytona Beach, Florida in the state. BSI is part of a privately held group of banking organizations controlled by a family (the First Bank System, Inc. "Selling Group").5 BSI has total assets of $2.4 billion, Minneapolis, Minnesota and controls deposits of $2 billion, representing 4.7 percent of total commercial bank deposits in the Order Approving Merger of Bank Holding state.6 Upon consummation of this proposal, FBS Companies would become the largest commercial banking organization in Minnesota, controlling $11.3 billion in total First Bank System, Inc., Minneapolis, Minnesota deposits, representing 25.5 percent of total commer- ("FBS"), a bank holding company within the meaning cial bank deposits in the state. of the Bank Holding Company Act ("BHC Act"), has applied under section 3 of the BHC Act (12 U.S.C. § 1842) to merge with Bank Shares Incorporated 3. FBS also proposes to acquire BSI's three inactive insurance ("BSI"),1 also a bank holding company, and thereby agency subsidiaries, Marquette Insurance Agency at Lake, Inc.; Marquette Insurance Agency at University, Inc.; and Marquette acquire Marquette Bank Minneapolis, N.A., both of Insurance Agency of Columbia Heights, Inc. FBS intends to eliminate Minneapolis, Minnesota.2 the separate corporate status of each of the nonbank subsidiaries to be FBS has also applied under section 4(c)(8) of the acquired, including the inactive subsidiaries, within approximately one year following the consummation of the proposal by merger with BHC Act to engage in nonbanking activities through existing subsidiaries of FBS and/or by dissolution of the subsidiary. the acquisition of the following BSI subsidiaries: FBS would be required to obtain regulatory approval for any activity to be conducted by the inactive nonbank subsidiaries. 4. Asset and state banking data are as of June 30, 1992. Market banking data are as of June 30, 1991. 5. The Selling Group is the third largest banking organization in 1. In connection with this proposal, BSI has issued to FBS a warrant Minnesota, with total deposits of $2.6 billion, representing 5.7 percent to purchase, under certain circumstances, up to 24.9 percent of the of commercial bank deposits in the state. outstanding common stock of BSI. The warrant will terminate in the 6. In connection with the proposal, a shareholder in the Selling event FBS and BSI have been unable to secure all applicable Group (or his assignees) will purchase the following bank and nonbank regulatory approvals or upon consummation of the proposed merger. assets of BSI on or before the consummation of the proposed merger 2. FBS will also acquire the following nonbank subsidiaries of of FBS and BSI: Marquette Bank Minneapolis and continue to operate them as subsid- (i) 28.3 percent of the capital stock of Marquette Bank Brookdale, iaries of the Bank: United Consulting Corporation, Marquette Finan- (ii) 78.9 percent of the capital stock of Lakeville Financial Services, cial Services, Inc., Marquette Lease Services, Inc., Marquette Leas- Inc., which owns 91.6 percent of the capital stock of Marquette ing Corporation, Marquette Capital Management Corp., and F&M Bank Lakeville, and Mortgage Corporation. FBS intends to merge Marquette Bank Min- (iii) all of the capital stock of Marquette Fund Advisors, Inc., a neapolis into First Bank National Association, Minneapolis, Minne- wholly owned subsidiary of Marquette Bank Minneapolis. The data sota, approximately six to nine months after consummation of the for BSI in this order reflect only the portion of BSI that would be merger of FBS and BSI, subject to regulatory approval. acquired by FBS under this proposal. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 51 Competitive Considerations posal. Initially, the Board notes that the combined share of commercial banking deposits controlled by FBS and BSI directly compete in the Minneapolis- the top two competitors in the market, FBS and St. Paul banking market.7 In this market, FBS is the Norwest Corporation, Minneapolis, Minnesota, has second largest depository institution, controlling total steadily declined from 75 percent in 1960 to 59.7 deposits of $7.1 billion, representing 26.8 percent of percent in 1991, their lowest point during this thirtytotal deposits in depository institutions in the mar- year period. Upon consummation of the proposal, the ket ("market deposits").8 BSI controls deposits of number of in-market competitors will remain the same $1.7 billion, representing 6.5 percent of market depos- at 104 and will include 94 commercial banks and 10 its.9 Upon consummation of this proposal, FBS would thrifts.12 In addition, credit unions actively compete in become the largest depository institution in the mar- the market and control approximately 8 percent of ket, controlling total deposits of $8.8 billion, repre- deposits in commercial banks, savings associations senting 33.3 percent of market deposits. The Herfind- and credit unions, which is greater than the national ahl-Hirschman Index ("HHI") would increase by 317 average of approximately 5 percent.13 There are also a points to 2026.10 large number of national consumer and commercial In previous cases, the Board has stated that trans- finance companies, as well as offices of other nondeactions that increase the levels of market concentra- pository providers of financial services in the Minnetion above the thresholds provided in the Department apolis-St. Paul market, that offer a broad range of competitive banking services. of Justice guidelines require close scrutiny. The Board also has noted that merger transactions in the Minne- The Minneapolis-St. Paul banking market is a major apolis-St. Paul banking market involving one of the urban area and, as such, is attractive for entry.14 In two largest depository institutions in the market war- this regard, the market has experienced both de novo rant close review because of the size of these institu- entry and entry by acquisition in recent years. For tions relative to other market competitors.11 example, a total of five banks have entered the market In this regard, a number of factors indicate that the de novo since 1984, with two of these banks chartered increase in concentration levels in the Minneapolis- since 1990. In addition, a regional thrift institution St. Paul banking market as measured by the HHI and entered de novo in 1987 and has made subsequent the market shares of the top two market competitors acquisitions within the market. A large regional bank tends to overstate the competitive effects of this pro- holding company also entered the market in 1987 through an acquisition and has made seven additional acquisitions of smaller banks over a three-year period. 7. The Minneapolis-St. Paul banking market is defined as Anoka, The State of Minnesota has recently relaxed restric- Hennepin, Ramsey, Washington, Carver, Scott, and Dakota Countions on interstate banking acquisitions which has ties, and portions of Chisago, Le Sueur, Sherburne, and Wright Counties in Minnesota, and the town of Hudson in St. Croix County served to increase the number of potential entrants. in Wisconsin. Minnesota has expanded its region of eligible states for 8. Market share data are based on calculations in which the deposits reciprocal banking acquisition since the enactment of of thrift institutions are included at 50 percent. The Board previously has indicated that thrift institutions have become, or have the poten- its interstate banking statute in 1986.15 In 1992, institial to become, significant competitors of commercial banks. See Midwest Financial Group, 75 Federal Reserve Bulletin 386 (1989); National City Corporation, 70 Federal Reserve Bulletin 743 (1984). 9. The Selling Group is the third largest depository institution in the market, with total deposits of $2.3 billion, representing 8.8 percent of 12. The Selling Group will continue to compete in the Minneapolismarket deposits. Following the merger, the Selling Group would St. Paul banking market after this transaction. The Board notes that continue to compete in the Minneapolis-St. Paul banking market, the Selling Group has stated that it will compete vigorously with FBS operating banks controlling total deposits of approximately in this market. In this regard, the Selling Group has presented a plan $650 million, representing 2.3 percent of market deposits. for its future activities, and the merger agreement between FBS and 10. Under the revised Department of Justice Merger Guidelines, the Selling Group does not contain any features that limit in any way 49 Federal Register 26,823 (June 29, 1984), a market in which the the ability of the Selling Group to compete in this market. Although post-merger HHI is above 1800 is considered highly concentrated. In the Selling Group will become the second largest shareholder of FBS, such markets, the Justice Department is likely to challenge a merger controlling approximately 6.4 percent of its voting shares, the Selling that increases the HHI by more than 50 points. The Justice Depart- Group will have no representation on the FBS board of directors. ment has informed the Board that a bank merger or acquisition 13. At least two credit unions permit all market residents to join as generally will not be challenged (in the absence of other factors members. indicating anti-competitive effects) unless the post-merger HHI is at 14. The Minneapolis-St. Paul metropolitan area, with a population least 1800 and the merger increases the HHI by 200 points. The Justice of 2.46 million, is the 16th largest in the United States according to Department has stated that the higher than normal HHI thresholds for 1990 census data, and has increased 15.3 percent in population since screening bank mergers for anti-competitive effects implicitly recog- 1980. nize the competitive effects of limited-purpose lenders and other 15. See Reciprocal Interstate Banking Act, Minn. Stat. Ann. non-depository financial entities. § 48.90 et seq. The region includes the following states: Colorado, 11. Norwest Corporation, 77 Federal Reserve Bulletin 110 (1991); Idaho, Illinois, Indiana, Iowa, Ohio, Kansas, Michigan, Missouri, First Bank System, Inc., 76 Federal Reserve Bulletin 1051 (1990); Montana, Nebraska, North Dakota, South Dakota, Washington, Wis- Norwest Corporation, 76 Federal Reserve Bulletin 873 (1990). consin and Wyoming. Some states, such as Montana, Kansas and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

52 Federal Reserve Bulletin • January 1993 tutions located in Michigan and Ohio became eligible of record, and for the reasons discussed, the Board to enter Minnesota, thereby significantly increasing concludes that the proposal would not have a signifithe number of potential regional bank holding compa- cantly adverse effect on competition in the Minneapnies eligible to make acquisitions in Minnesota.16 olis-St. Paul banking market or any other relevant Furthermore, banks with their principal office within banking market. the seven-county area that comprises most of the Minnesota-St. Paul banking market may establish de- Other Considerations tached facilities (branches) through mergers almost anywhere within this market without being subject to The financial and managerial resources and future the five-branch limitation imposed under Minnesota prospects of FBS and BSI, and their subsidiaries, the law.17 convenience and needs factors, and all other supervi- The Antitrust Division of the Department of Justice sory factors required to be considered by the Board ("Department") has commented that the proposal will under section 3 of the BHC Act are consistent with not substantially lessen competition in the Minneapo- approval. lis-St. Paul banking market. Using an alternative anal- FBS has also applied under section 4(c)(8) of the ysis of the competitive effects of this proposal, the BHC Act to acquire the nonbanking subsidiaries of Department considered competition in the market for BSI. The Board has determined by regulation that retail banking products (including transactional and each of the activities of these companies is closely savings accounts, housing-related loans and personal related to banking and generally permissible for bank loans) as well as the market for business banking holding companies, and FBS proposes to conduct (including commercial lines of credit, other loans, and these activities in accordance with these regulations. various cash management services). In addition, the In each case, there are numerous providers of these impact of the proposal on competition for middle- nonbanking services, and this proposal would not have market business customers, defined as businesses with a significantly adverse competitive effect on the marbetween $10 million and $100 million in annual sales, kets for these nonbanking services. In addition, there was considered by the Department and found to have is no evidence in the record to indicate that approval of no significantly adverse effect.18 The Attorney General the proposed acquisition of any of the nonbanking of the State of Minnesota also has reviewed the companies would result in any significantly adverse proposal and has no objection to the competitive effects, such as undue concentration of resources, effects of the proposal in the Minnesota-St. Paul decreased or unfair competition, conflicts of interests, banking market.19 or unsound banking practices that are not outweighed The Board has carefully reviewed all of the facts of by public benefits. Accordingly, the Board has deterrecord on these applications, including comments re- mined that the balance of public interest factors that ceived from the public.20 On the basis of all of the facts the Board must consider under section 4(c)(8) of the BHC Act is favorable and consistent with approval. Based on all of the facts of record, including the Missouri have not adopted legislation that satisfies Minnesota's reci- commitments made by FBS in connection with this procity requirement. application, the Board has determined that the appli- 16. Both states have interstate banking statutes that meet Minnesota's reciprocity requirements. See Mich. Comp. Laws § 23.710(130b), cations should be, and hereby are, approved. The 1(g) (authorizes acquisitions with a region which includes Minnesota) Board's approval is expressly conditioned upon comand Ohio Rev. Code Ann. § 1101.05(B) (authorizes nationwide reciprocal acquisitions). pliance with the commitments made in connection 17. Minn. Stat. Ann. § 49.34, Subd. 2(b). These counties are: with these applications and with the conditions re- Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington, ferred to in this Order. The determination as to the all in Minnesota. nonbanking activities approved in this case is also 18. The Department concluded that the following factors would suggest that this market would not become substantially less compet- subject to all of the conditions contained in Regulaitive following consummation of the proposal: tion Y, including those in sections 225.4(d) and (1) 10 banks would remain as competitors in the market; (2) Small banks in the market have the incentives and capability to 225.23(b)(3) (12 C.F.R. 225.4(d) and 225.23(b)(3)), and expand into middle-market lending; to the Board's authority to require such notification or (3) Firms currently serving small-business customers plan to serve middle-market businesses in the future; and (4) The Selling Group will continue to compete for middle-market loans. 19. Comments from both the Attorney General and the Department transaction in the Minneapolis-St. Paul banking market. The Board raised issues regarding the competitive effects of the proposed acqui- has carefully considered the comments alleging that the proposal sition by FBS in the Rochester, Minnesota, banking market. FBS has would have substantial anticompetitive effects and adverse conseamended its proposal to delete an acquisition in this banking market. quences on the communities served in the Minneapolis-St. Paul 20. The Board has received a total of 89 comments, with 56 in favor banking market. For the reasons stated above, these comments do not of approval and 33 opposed. Only five of the commenters opposed the raise issues that would warrant denial of these applications. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 53 termination of the activities of a holding company or number of important characteristics of the Minneapoany of its subsidiaries as the Board finds necessary to lis-St. Paul banking market indicate that the competiassure compliance with, or to prevent evasion of, the tive effects of this proposal would in fact be signifiprovisions and purposes of the BHC Act and the cantly adverse. Board's regulations and orders issued thereunder. For For over 30 years, the Minneapolis-St. Paul banking purposes of this action, the commitments and condi- market has been dominated by two banking organizations relied on in reaching this decision are both tions, First Bank System and Norwest. Only one conditions imposed in writing by the Board and, as competitor—the company First Bank System prosuch, may be enforced in proceedings under applicable poses to acquire—controls as much as 5 percent of law. market deposits, and only three depository institutions The banking acquisitions shall not be consummated (including one savings association) control over before the thirtieth calendar day after the effective 2 percent of market deposits. Nearly all remaining date of this Order, and all acquisitions shall not be depository institution competitors in the market conconsummated later than three months after the effec- trol less than 1 percent each of market deposits. In tive date of this Order, unless such period is extended contrast, First Bank System and Norwest together for good cause by the Board or by the Federal Reserve currently control approximately 57 percent of market Bank of Minneapolis, acting pursuant to delegated deposits. Each of these two companies controls at authority. least three times the market share of any of the By order of the Board of Governors, effective remaining depository institution competitors in the November 30, 1992. market, and, following the proposed acquisition, each of these companies would control nearly five times the Voting for this action: Chairman Greenspan and Governors market share of any remaining competitor. In our Mullins, Lindsey, and Phillips. Voting against this action: view, the acquisition by First Bank System of the third Governors Angell, Kelley, and LaWare. largest banking organization in this skewed market would solidify the dominance of the two largest orga- JENNIFER J. JOHNSON nizations in the market. We believe that this proposal Associate Secretary of the Board is anticompetitive because the proposal creates a more dominant market position through the acquisition of a Dissenting Statement of Governors Angell, Kelley, vigorous in-market competitor instead of through open and LaWare competition. In the process, the acquisition would eliminate the only other organization in the market We believe that the acquisition proposed in this case with sufficient size and market share to challenge any would have a significantly adverse effect on competi- anti-competitive behavior by the largest organizations. tion in the Minneapolis-St. Paul banking market and We do not find persuasive Applicant's contention that the anti-competitive effects of this proposal are that the current owners of BSI will continue to be not outweighed by the public benefits in this case. aggressive competitors following this acquisition by Accordingly, we would deny this proposal. First Bank System. The current owners of BSI will First Bank System, which is the second largest also become significant owners of First Bank System depository organization in the Minneapolis-St. Paul as a result of this merger, and, indeed, will have a banking market, proposes to acquire the third largest larger investment of resources in First Bank System depository institution in the market. As a result, First than in the remaining offices of BSI. It is difficult for us Bank System would become the largest depository to believe that, in this situation, these owners can be organization in the market, controlling over 33 percent expected to compete vigorously against their own of market deposits. Consummation of this proposal interests. would result in an increase of over 315 points in the We are also troubled by the effect of this merger on Herfindahl-Hirschman Index for the Minneapolis- the market for loans to medium-sized businesses. St. Paul banking market, to a level above 2025. This Currently, these businesses rely on a very small numincrease in the concentration level of the market is ber of competitors in the Minneapolis-St. Paul market significantly above the threshold for mergers in a and surrounding region to provide credit. Most bankhighly concentrated market under the Department of ing institutions in the Minneapolis-St. Paul banking Justice Merger Guidelines. market are too small to serve the needs of these The Board has previously indicated that a proposal businesses, and the acquisition by First Bank System that involves an increase in market concentration of the last remaining medium-sized bank in this market levels that exceed the DOJ Guidelines requires close eliminates one of the last local providers of this credit. scrutiny of the competitive effects. In this case, a For these reasons, we view the proposed acquisition Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

54 Federal Reserve Bulletin • January 1993 as having a significantly adverse effect on competition ance Agency, Ackley, Iowa ("Agency"), and thereby in the Minneapolis-St. Paul banking market. We do not engage in general insurance agency activities in a small believe, on the other hand, that the anti-competitive town with a population of under 5,000 pursuant to the effects of this proposal are diminished by any signifi- Board's Regulation Y (12 C.F.R. 225.25(b)(8)(iii)). cant mitigating factors. Notice of the applications, affording interested per- We believe that the skewed market structure in this sons an opportunity to submit comments, has been case greatly diminishes the attractiveness of the published (57 Federal Register 39,203 (1992)). The Minneapolis-St. Paul market for entry by new compet- time for filing comments has expired, and the Board itors. BSI represents the only vehicle for entry into has considered the applications and all comments commercial banking in the Minneapolis-St. Paul bank- received in light of the factors set forth in the BHC ing market that has sufficient size and market share to Act. provide an entrant with a reasonable prospect of GNB is the 70th largest commercial banking organichallenging the competitive position of the two domi- zation in Iowa, controlling deposits of $73.7 million, nant firms in the market. This merger would eliminate representing less than 1 percent of total deposits in that prospect. Following this acquisition, no banking commercial banks in the state.1 Ackley is the 207th competitor would remain that controls as much as largest commercial banking organization in Iowa, con- 5 percent of market deposits. trolling deposits of $31.4 million, representing less Moreover, aside from First Bank System and Nor- than 1 percent of total deposits in commercial banks in west, the three largest remaining depository institu- the state. Upon consummation of the proposed transtions in the market would control, in the aggregate, action, GNB would become the 45th largest commeronly approximately 11 percent of market deposits. As cial banking organization in Iowa, controlling deposits a result, potential entrants are faced with entering this of $105.1 million, representing less than 1 percent of market either de novo or through a series of small total deposits in commercial banks in the state. acquisitions. Both approaches are expensive and un- Ackley Bank and Grundy Bank do not compete in likely to permit the entrant to respond quickly or any banking market.2 Based upon this and other facts effectively to anti-competitive pricing behavior by of record, the Board has determined that consummaeither First Bank System or Norwest. tion of the proposal would not result in a significantly We do not believe that Applicant has demonstrated adverse effect on competition in any relevant banking that any significant public benefits would result from market. this merger that would outweigh the anti-competitive The financial and managerial3 resources and future effects of the merger or that could not be achieved in prospects of GNB, Grundy Bank, and Ackley Bank, another way. As a result, we would find that the effects as well as convenience and needs considerations and of this acquisition would be to lessen substantially all other supervisory factors the Board is required to competition in the Minneapolis-St. Paul banking mar- consider under section 3 of the BHC Act, also are ket, and, accordingly, we would deny the proposal. consistent with approval of this application.4 November 30, 1992 1. State deposit data are as of June 30, 1992. 2. Ackley Bank operates in Ackley, Iowa, in the Hardin County, Iowa banking market, which is approximated by Hardin County, GNB Bancorporation Iowa; and in Geneva, Iowa, in the Franklin County, Iowa banking Grundy Center, Iowa market, which is approximated by Franklin County, Iowa, excluding Ross Township. Grundy Bank operates in Grundy Center, Iowa, and Holland, Iowa, in the Grundy, Iowa banking market, which is Order Approving Acquisition of a Bank Holding approximated by Grundy County, Iowa and Lincoln Township in Tama County, Iowa. Company and a General Insurance Agency 3. The Board has carefully considered comments from an individual ("Protestant") opposing this application on the basis of various loan transactions with Ackley Bank. Protestant and Ackley Bank have GNB Bancorporation, Grundy Center, Iowa been involved in extensive litigation regarding these transactions, and ("GNB"), a bank holding company within the mean- the Iowa state courts have confirmed Ackley Bank's legal right to ing of the Bank Holding Company Act ("BHC Act"), foreclose on Protestant's collateral. Based on all of the facts of record, including information provided by the Protestant and by GNB, and has applied under section 3(a)(5) of the BHC Act relevant reports of examination, the Board does not believe that (12 U.S.C. § 1842(a)(5)) to merge with Ackley Ban- Protestant's comments warrant denial of this application. The Board also notes that Protestant's pending civil action will provide Protescorporation, Ackley, Iowa ("Ackley"), and thereby tant with a full opportunity to press his claims and to obtain a remedy, indirectly acquire 98 percent of the voting shares of if his allegations are proved and a remedy is appropriate. Ackley State Bank, Ackley, Iowa ("Ackley Bank"). 4. Protestant has requested that the Board hold a public hearing to assess further facts surrounding his allegations. The Board is not GNB also has applied under section 4(c)(8) of the BHC required under section 3 of the BHC Act to hold a public hearing Act (12 U.S.C. § 1843(c)(8)) to acquire Ackley Insur- unless the primary supervisor for the bank to be acquired does not Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 55 GNB also has applied, under section 4(c)(8) of the tions with respect to GNB's nonbanking activities also BHC Act, to acquire Agency and thereby to engage in are subject to the conditions set forth in Regulation Y, general insurance agency activities in a small town including those in sections 225.4(d) and 225.23(b) with a population of under 5,000. The Board previ- (12 C.F.R. 225.4(d) and 225.23(b)), and to the Board's ously has determined by regulation that the insurance authority to require such modification or termination agency activities proposed to be conducted by GNB of the activities of a bank holding company or any of are closely related to banking and permissible for bank its subsidiaries as the Board finds necessary to assure holding companies under section 4(c)(8) of the BHC compliance with, and to prevent evasion of, the pro- Act.5 GNB has committed that it will conduct these visions of the BHC Act and the Board's regulations activities subject to the limitations contained in Regu- and orders issued thereunder. For purposes of this lation Y. action, the commitments and conditions relied on in In order to approve the acquisition of Agency under reaching this decision are both conditions imposed in section 4 of the BHC Act, the Board also must find writing by the Board and, as such, may be enforced in that the performance of the proposed activities by proceedings under applicable law. GNB "can reasonably be expected to produce benefits The acquisition of Ackley shall not be consummated to the public . . . that outweigh possible adverse before the thirtieth calendar day after the effective date effects, such as undue concentration of resources, of this Order, and the proposal shall not be consumdecreased or unfair competition, conflicts of interests, mated later than three months after the effective date of or unsound banking practices." 12 U.S.C. this Order, unless such period is extended for good § 1843(c)(8). GNB has stated that the proposal will cause by the Board or by the Federal Reserve Bank of allow the continuation of those public benefits cur- Chicago, acting pursuant to delegated authority. rently provided by Agency. The Board expects that By order of the Board of Governors, effective such continuation would maintain the level of compe- November 16, 1992. tition among insurance agencies in the market and provide a convenient source of insurance agency ser- Voting for this action: Chairman Greenspan and Governors vices to the public. In addition, there is no evidence in Mullins, Angell, Kelley, LaWare, Lindsey, and Phillips. the record that consummation of this proposal would result in any significantly adverse effects, such as JENNIFER J. JOHNSON undue concentration of resources, decreased or unfair Associate Secretary of the Board competition, conflicts of interests, or unsound banking practices. Accordingly, the Board concludes that the Old National Bancorp balance of the public interest factors that it is required Evansville, Indiana to consider under section 4(c)(8) of the BHC Act is favorable and consistent with approval of the application to acquire Agency. Based on the foregoing and Order Approving the Merger of Bank Holding other facts of record, and subject to the commitments Companies and the Acquisition of a Savings made by GNB in this case, the Board has determined Association that the applications should be, and hereby are, approved. This approval is specifically conditioned upon Old National Bancorp, Inc., Evansville, Indiana ("Old compliance by GNB with all of the commitments made National"), a bank holding company within the meaning in connection with these applications and with the of the Bank Holding Company Act ("BHC Act"), has conditions referenced in this Order. The determinaapplied for the Board's approval under section 3 of the BHC Act (12 U.S.C. § 1842) to merge with Palmer Bancorp, Inc., Danville, Illinois ("Palmer"), and thereby approve the proposal. In this case, the primary supervisor for Ackley acquire Palmer-American National Bank of Danville, Bank has not objected to the proposal. Danville, Illinois ("Palmer Bank"), and The Citizens Under its rules, the Board may, in its discretion, hold a public hearing or meeting on an application to clarify factual issues related to State Bank, Williamsport, Indiana ("Citizens Bank"). the application and to provide an opportunity for testimony, if Old National has also applied for the Board's apappropriate. 12 C.F.R. 262.3(e) and 262.25(d). The Board has careproval in a separate transaction to merge with Southfully considered this request and the written comments submitted by Protestant. In the Board's view, Protestant has had ample opportunity ern Illinois Holding Company ("Southern"), and to submit and has submitted substantial written comments that have thereby acquire Bank South, a Federal Savings Bank been considered by the Board. In light of these facts, the Board has determined that a public meeting or hearing is not necessary to clarify ("Bank South"), Harrisburg, Illinois. Bank South is a the factual record in this application, and is not otherwise warranted federal savings bank that is deemed to be a savings in this case. Accordingly, the request for a public hearing or meeting association for purposes of the BHC Act. Accordon this application is hereby denied. 5. See 12 C.F.R. 225.25(b)(8)(iii). See also 12 U.S.C. § 1843(c)(8)(C). ingly, Old National seeks Board approval to acquire Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

56 Federal Reserve Bulletin • January 1993 Southern and Bank South pursuant to section 4(c)(8) tion by a bank holding company to acquire any bank of the BHC Act and section 225.25(b)(9) of the Board's located outside of the bank holding company's home Regulation Y (12 C.F.R. 225.25(b)(9)). state, unless such acquisition is "specifically autho- In addition, Old National has applied, pursuant to rized by the statute laws of the State in which such section 5(d)(3) of the Federal Deposit Insurance Act bank is located, by language to that effect and not (12 U.S.C. § 1813(d)(3) (the "FDI Act"), as amended merely by implication."2 Old National, which has by the Federal Deposit Insurance Corporation Im- Indiana as its home state for purposes of the Douglas provement Act of 1991 (Pub. L. No. 102-242, § 501, Amendment,3 seeks to acquire a bank in Illinois.4 The 105 Stat. 2236, 2388-2392 (1991)) to merge Bank South Illinois interstate banking statute expressly authorizes into Old National's subsidiary bank, First National the acquisition by an out-of-state bank holding com- Bank of Harrisburg, Harrisburg, Illinois ("First Na- pany, such as Old National, of an Illinois bank, such as tional Bank"). Section 5(d)(3) of the FDI Act requires Palmer Bank, and the Board has previously deterthe Board to follow the procedures and consider the mined that the interstate banking statutes of Illinois factors set forth in the Bank Merger Act (12 U.S.C. permit the acquisition of Illinois banking organizations § 1828(c)). 12 U.S.C. § 1815(d)(3)(E). by Indiana banking organizations.5 Based on all the Notice of the applications, affording interested per- facts of record, the Board concludes that Old Nationsons an opportunity to submit comments, has been al's acquisition of Palmer Bank complies with the published (57 Federal Register 10,764 and 14,399 Illinois interstate banking statute, and that Board (1992)). As required by the Bank Merger Act, reports approval of this proposal is not prohibited by the on the competitive effects of the merger were re- Douglas Amendment. Approval of this proposal is quested from the United States Attorney General, the conditioned upon Old National receiving all required Office of the Comptroller of the Currency ("OCC"), state regulatory approvals. and the Federal Deposit Insurance Corporation. The Old National and Palmer do not compete in any of time for filing comments has expired, and the Board the same banking markets. Based on all the facts of has considered the applications and all comments record, the Board concludes that consummation of received in light of the factors set forth in sections 3(c) this proposal under the BHC Act will not have a and 4(c)(8) of the BHC Act and the Bank Merger Act. significantly adverse effect on competition in any Old National, with approximately $2.7 billion in relevant banking market. consolidated assets, controls a total of 16 banking The Board also concludes that the financial and subsidiaries located in Indiana, Kentucky and Illi- managerial resources and future prospects of Old nois. In Illinois, Old National is the 60th largest National, Palmer and Southern, and their subsidiary commercial banking organization, controlling depos- depository institutions, and other supervisory factors its of $264.6 million, representing less than 1 percent that the Board must consider under section 3 of the of the total deposits in commercial banking organi- BHC Act are also consistent with approval. zations in that state.1 Palmer Bancorp is the 112th largest commercial banking organization, control- Convenience and Needs Considerations ling deposits of $168.1 million, representing less than 1 percent of the total deposits in commercial banking In acting on an application to acquire a depository organizations in Illinois. Southern is the 132nd larg- institution under the BHC Act and the Bank Merger est thrift institution in Illinois, controlling deposits of Act, the Board must consider the convenience and $52.8 million. Upon consummation of both proposed needs of the communities to be served and take into transactions, Old National would be the 36th largest account the records of the relevant depository institucommercial banking organization in the state, con- tions under the Community Reinvestment Act trolling $495.5 million in deposits. (12 U.S.C. § 2901 et seq.) ("CRA"). The CRA requires the federal financial supervisory agencies to Acquisition of Palmer under Section 3 of the encourage financial supervisory agencies to encourage BHC Act 2. 12 U.S.C. § 1842(d). Douglas Amendment 3. A bank holding company's home state is that state in which the operations of the bank holding company's banking subsidiaries were Section 3(d) of the BHC Act, the Douglas Amend- principally conducted on July 1, 1966, or the date on which the company became a bank holding company, whichever is later. ment, prohibits the Board from approving an applica- 4. The acquisition of Bank South, which is deemed to be a savings association for purposes of the BHC Act, is not subject to the interstate banking restrictions of the Douglas Amendment. 5. See 111. Ann. Stat. ch. 17, para. 2510.01; Old National Bancorp, 1. State deposit data are as of June 30, 1991. 74 Federal Reserve Bulletin 398 (1988). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 57 financial institutions to help meet the credit needs of of commitments from Old National which Protestants the local communities in which they operate consistent contend will improve Palmer Bank's CRA perforwith the safe and sound operation of such institutions. mance.11 To accomplish this end, the CRA requires the appro- The Board has carefully reviewed the CRA perforpriate federal supervisory authority to "assess the mance records of Old National, Palmer and Southern, institution's record of meeting the credit needs of its and their subsidiary depository institutions, as well as entire community, including low- and moderate-in- all comments received, the responses to those comcome neighborhoods, consistent with the safe and ments, and all other relevant facts of record, in light of sound operation of such institution," and to take this the CRA, the Board's regulations, and the Statement record into account in its evaluation of bank holding of the Federal Financial Supervisory Agencies Recompany applications.6 garding the Community Reinvestment Act ("Agency The Board has received comments from the People CRA Statement").12 For Equal Justice ("PFEJ") and the Illinois Center for Citizen Involvement ("ICCI") (collectively "Protes- Record of Performance under the CRA tants") that raise issues regarding the efforts by Old National and Palmer to help in meeting the credit A. CRA Performance Examination needs of their entire communities in Indiana and Illinois, respectively, including low- and moderate- The federal banking agencies have indicated in the income and minority neighborhoods.7 Specifically, Agency CRA Statement that a CRA examination is an Protestants contend that Old National's lead bank important, and often controlling, factor in the considsubsidiary, Old National Bank in Evansville, Evans- eration of an institution's CRA record.13 The Board ville, Indiana ("Old National Bank") has not: notes that in this case all of Old National's subsidiary (1) Adequately ascertained the credit needs and banks have received an "outstanding" or "satisfactomarketed credit products to the minority communi- ry" rating during the most recent examinations of their ties in the Evansville area; and CRA performance.14 In particular, Old National Bank (2) Met the credit needs of these communities, especially in the areas of conventional business loans, housing-related lending (including FHA and which resulted in CRA focus group discussions with members of the VA home loans), and personal credit products.8 community. 11. These requested commitments include: Protestants also allege that Old National Bank has (1) Establishment of a CRA advisory committee with representaengaged in illegal discriminatory lending practices.9 tives from minority communities, business and government sectors, In addition, Protestants have alleged that the mar- and the public; (2) Review of Palmer Bank's loan standards to remove alleged keting plan for Palmer Bank demonstrates illegal disartificial barriers; criminatory lending policies, and that Palmer Bank has (3) Formation of a pool for new housing, small business and home failed to ascertain credit needs, market credit prod- improvement lending at favorable rates; (4) Formation of a $2 million home improvement loan program with ucts, or make loans in minority or low-income neigh- the Danville Community Action Agency to assist low-income famborhoods.10 Protestants have also requested a number ilies; (5) Promotion of training in business management and lending for small businesses; and (6) Consumer-education seminars on a quarterly basis in low- 6. 12 U.S.C. § 2903. income census tracts. 7. PFEJ has protested Old National's applications under the BHC Palmer Bank has documented its formation of a CRA advisory Act and the Bank Merger Act. ICCI has protested Old National's counsel, a summary of its employees' involvement in the community, application under the BHC Act. participation in housing and community development projects, and a 8. Protestants also criticize Old National Bank for not employing number of seminars it has conducted on consumer banking and small minorities from the local community and not providing minority business issues. In response to Protestants' allegation of an unfair employees for minority customers. Old National responds that it advertisement in the "Palmer Newsletter," Palmer Bank notes that supports equal employment opportunity and that Old National em- the individual pictured in the advertisements is the executive director ployees reflect the ethnic makeup of its neighborhoods. While the of a community service organization that had been working with the Board fully supports affirmative programs designed to promote equal bank and the city of Danville in a project funded by the bank to opportunity in every aspect of a banking organization's personnel renovate and sell vacant housing. policies and practices in the employment, development, advance- 12. 54 Federal Register 13,732 (1989). ment, and treatment of employees and applicants for employment, the 13. Id. Board believes that a banking organization's general personnel prac- 14. Old National's subsidiary banks have received the following tices are beyond the scope of factors that may be assessed under the CRA ratings from their primary regulators: Merchants National Bank CRA or the convenience and needs factor. Terre Haute, Terra Haute, Indiana, "satisfactory" (OCC, May 1991); 9. PFEJ claims that these allegations are supported by minority Farmers Bank and Trust of Madisonville, Madisonville, Kentucky, business surveys, interviews with minority customers of Old National "satisfactory" (FDIC, September 1989); United Southwest Bank, and mortgage data filed under the Home Mortgage Disclosure Act Washington, Indiana, "satisfactory" (FDIC, July 1991); Security ("HMDA"). Bank and Trust, Vincennes, Indiana, "satisfactory" (FDIC, Septem- 10. Palmer Bank has responded that the study referred to by ber 1985); Farmers Bank and Trust Company, Henderson, Kentucky, Protestants was actually produced to assist in its ascertainment efforts "satisfactory" (FDIC, August 1991); First National Bank of Harris- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

58 Federal Reserve Bulletin • January 1993 received a "satisfactory" rating for CRA performance tions in organizations that address issues of commufrom the OCC in April 1991. Palmer's subsidiary nity improvement such as housing needs for lowbanks, including Palmer Bank, and Bank South also income individuals.16 received satisfactory CRA performance ratings from Old National Bank has a marketing committee comtheir primary federal regulators in their most recent posed of directors, executive officers, and the bank's examinations.15 director of marketing. This committee is responsible for reviewing the bank's overall marketing strategy. In B. Aspects of CRA Performance addition, individual advertisements also are reviewed for compliance with applicable laws and regulations. Corporate Policies. Old National's subsidiary banks The bank uses a variety of mass media, including local currently have in place the types of policies outlined in newspapers, radio, television, and billboards, which the Agency CRA Statement that contribute to an reach broad segments of its community. Although Old effective CRA program. For example, Old National National Bank's advertising does not generally pro- Bank's board of directors has developed a comprehen- mote particular products, the bank has promoted its sive CRA Statement that is reviewed by the board low-cost checking program to low- and moderateannually. A CRA directors committee also annually income customers in response to customer demand. assesses the bank's performance in the twelve areas of The bank also periodically advertises particular prod- CRA assessment, and the bank's overall CRA compli- ucts in publications such as Our Times and church ance is coordinated through a full-time CRA officer. bulletins targeted to minority and low-income individ- Old National Bank also has developed a CRA training uals. program for bank personnel at all levels. These efforts Old National has committed to initiate steps to include seminars, in-house banking publications, and strengthen its ascertainment and outreach efforts. In computer modules to keep employees abreast of CRA this regard, it will hold quarterly meetings at each of its requirements. four banking offices located in the low- and moderate- Ascertainment and Marketing. Old National Bank income census tracts to discuss the needs of residents has joined with three other commercial banks in of these areas for financial products and services. Evansville to form the Evansville Clearinghouse As- Lending and Other Activities. Examiners concluded sociation ("the Association") in an effort to increase that Old National Bank is active in local real estate its ascertainment of community credit needs. The lending and has a satisfactory record in granting hous- Association meets with a number of neighborhood ing-related loans within the Evansville area, including groups to review credit needs and assess the adequacy in low- and moderate-income areas. In addition, the of deposit and credit services available in the commu- bank participates financially in a variety of programs nity. Old National Bank has also individually surveyed that support low-income housing. For example, Old various neighborhood groups to determine the types of National Bank and other participating financial instifinancial services that are needed in the community. tutions offer flexible financing terms to low-income The participation of Old National Bank employees, families through the Evansville Urban Homesteading officers, and directors in governmental, civic, and Program. Through this program, low-income families social organizations also assists the bank in determin- are permitted to purchase homes for nominal amounts ing the credit needs of the community. Some of the in return for renovation of the property. bank's directors and officers occupy leadership posi- The bank also participates in the Neighborhood Parade of Homes, which sponsors construction of new housing with special financing available, and a senior burg, Harrisburg, Illinois, "satisfactory" (OCC, April 1991); First officer of Old National Bank is chairman of the pro- State Bank, Greenville, Kentucky, "satisfactory" (FDIC, June 1989); Security Bank and Trust, Mt. Carmel, Illinois, "satisfactory" (FDIC, gram. Old National Bank financially supports the November 1990); Peoples Bank and Trust, Mount Vernon, Indiana, Evansville Coalition for the Homeless, which provides "outstanding" (FDIC, January 1990); First Citizens Bank and Trust, transitional housing to homeless individuals and con- Greencastle, Indiana, "satisfactory" (FDIC, October 1989); Morganfield National Bank, Morganfield, Kentucky, "satisfactory" (OCC, structs/rehabilitates low-income rental property, and May 1991); Gibson County Bank, Princeton, Indiana, "outstanding" Habitat of Evansville which recently constructed a (FDIC, November 1990); Peoples National Bank of Lawrenceville, Lawrenceville, Illinois, "satisfactory" (OCC, April 1991); Clinton State Bank, Clinton, Indiana, "outstanding" (FDIC, July 1988); Rockville National Bank, Rockville, Indiana, "satisfactory" (OCC, April 1991). 16. These organizations include the Neighborhood Economic De- 15. Palmer Bank and Citizens Bank were rated "satisfactory" for velopment Center (a lender of last resort to low-income individuals CRA performance by the OCC and FDIC respectively, as of and small businesses that are unable to obtain conventional financing), December 1, 1988, and November 2, 1989, respectively. Bank South Consumer Credit Counseling Service, Enterprise Zone, United Way, was rated "satisfactory" by the Office of Thrift Supervision as of Goodwill Industries, Inc., and the Southwestern Indiana Mental August 4, 1989. Health Center. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 59 new home for a family unable to qualify for a conven- Old National Bank's HMDA data show areas tional mortgage.17 of satisfactory lending performance. For example, Small business and consumer loans are made 18 percent of the Evansville MSA's population is throughout Old National Bank's community, including considered low- and moderate-income, and the bank low- and moderate-income neighborhoods. At year- extended 11 percent of its housing-related credit in end 1991, the bank had 224 commercial loans to low- and moderate-income areas. Old National Bank's individuals and businesses located in low- and moder- approval rate for minority loan applicants is also high. ate-income areas for an aggregate amount of $16.5 The Bank's HMDA data also shows, however, that the million.18 Old National Bank also has 376 consumer number of applications from minority applicants is loans to individuals in low- and moderate-income very low. areas totalling $2.9 million.19 After conducting a sur- The Board is concerned when the record of an vey in 1988 of minority-owned businesses, the bank institution indicates disparities in lending to minoriinstituted an annual, two-day seminar on small busi- ties, and believes that all banks are obligated to ensure ness issues. that their lending practices are based on criteria that Old National Bank also provides support to commu- assure not only safe and sound lending, but also assure nity development organizations financially and with equal access to credit by creditworthy applicants personnel. For example, the bank has contributed and regardless of race. The Board recognizes, however, provided leadership for the Tri State Rehabilitation that HMDA data alone provide only a limited measure Center, which provides physical and vocational reha- of any given institution's lending in its community. bilitation to many adults and children each year. The The Board also recognizes that HMDA data have bank also supports the Small Business Assistance limitations that make the data an inadequate basis, Corporation, which offers financial assistance to entre- absent other information, for conclusively determining preneurs seeking to start or expand a small business whether an institution has engaged in illegal discrimiwho are unable to secure conventional financing. nation on the basis of race or ethnicity in making HMD A Data and Lending Practices. The Board has lending decisions. reviewed the 1990 and 1991 data reported by Old In this regard, the most recent examination for CRA National Bank under the Home Mortgage Disclosure performance conducted by the OCC found no evi- Act ("HMDA") in light of Protestants' comments.20 dence of illegal discrimination or other illegal credit The HMDA requires banks to report publicly certain practices at Old National Bank.21 The examiners noted information on loan approvals and denials, including that no practices were detected that would discourage the race, gender and income of loan applicants as well applications for credit and that the bank had developed as the location of the proposed collateral property and policies which prohibit illegal discriminatory lending the disposition of the loan. practices and training programs to reinforce those policies. The examination included consideration of Old National Bank's 1990 HMDA data and samplings of loan applications that were approved and denied.22 17. Old National Bank also provided financing to Grace Homes, Old National Bank has also taken steps to improve Inc. for the construction of two rental homes for low-income residents its lending to minorities and low- and moderate-inof the inner city. 18. Old National Bank estimates that over the last five years, 37 come neighborhoods. In May 1992, the bank initiated commercial loans were made to minority-controlled businesses or a new housing program to provide fixed-rate mortindividuals in an aggregate amount of over $900,000. The bank's overall approval rate for commercial loan applicants in 1991 and 1992 is over 90 percent, but the bank's lending record demonstrates weakness in its efforts to solicit actively credit applications from the minority business community. The Board expects that Old National Bank will take steps to strengthen its performance in this area. 19. Protestants allege that Old National Bank has not provided 21. The examination noted one substantive violation of the Equal minorities access to credit services in inner-city areas. Old National Credit Opportunity Act. This exception involved the bank's failure to Bank maintains four full-service branches in the 18 low- and moder- document that business loan applicants with sales of less than $1 ate-income census tracts within its delineated service area, and its million had been notified of the reasons for the credit denial. Old principal office is located in the redevelopment and revitalization zone National Bank explains that this procedural omission was due to a as designated by the Evansville Area Planning Commission. change in the regulation which made disclosure requirements applica- 20. Protestants have questioned the lack of HMDA data for Palmer ble to this limited class of businesses. The bank has corrected its Bank. This bank is located in a non-Metropolitan Statistical Area commercial loan procedures to document the required disclosure and ("MSA") and, therefore, is not required to report data under the instituted a separate review process to monitor compliance. HMDA. On the basis of its internal lending data for 1991 and 1992, 22. The OCC has recently reviewed Old National Bank's lending Palmer Bank estimates that in both years approximately 46 percent of practices that were the subject of Protestants' comments and found no its housing-related lending was in low- and moderate-income census evidence of discriminatory lending practices. In addition, this review tracts within its service area. In addition, the most recent examination noted that in 1992 the number of housing-related loan applications of Palmer Bank found no evidence of illegal discriminatory lending received from blacks, and that the number of approvals had increased practices. from 1991 levels. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 Federal Reserve Bulletin • January 1993 gages to low- and moderate-income families.23 Under companies (12 C.F.R. 225.25(b)(9)). In making this this program, borrowers will be offered special loan determination under section 4(c)(8) of the BHC Act, terms, such as a 5 percent downpayment, flexible the Board required that savings associations acquired credit history requirement, a debt-to-income ratio of by bank holding companies conform their direct and 40 percent and homeowner education classes. In ad- indirect activities to those permissible for bank holding dition, Old National Bank has introduced a home- companies under section 4 of the BHC Act.24 improvement program for low- and moderate-income In order to approve applications under section residents which features affordable monthly pay- 4(c)(8) of the BHC Act, the Board is also required to ments. The bank intends to specially promote these determine that the performance of the proposed activprograms in low-income areas. ities by Old National "can reasonably be expected to Conclusion on Convenience and Needs. The Board produce benefits to the public . . . that outweigh has carefully considered the entire record of these possible adverse effects, such as undue concentration applications, including the comments filed in this case of resources, decreased or unfair competition, conand the performance examinations by the depository flicts of interests, or unsound banking practices." institutions' primary regulators, in reviewing the con- 12 U.S.C. § 1843(c)(8). venience and needs factor under the BHC Act. Based Old National and Southern directly compete in the on a review of the entire record of performance, the Harrisburg, Illinois, banking market ("Harrisburg Board believes that the efforts of Old National, Palmer banking market").25 Old National is the largest of 11 and Southern to help meet the credit needs of all depository institutions in the market, controlling desegments of the communities served by the subsidiar- posits of $100.5 million, representing approximately 18 ies of these banking institutions, including low- and percent of total deposits in depository institutions in moderate-income neighborhoods, are consistent with the market.26 Southern is the 10th largest depository approval. institution in the Harrisburg banking market, control- The Board recognizes that the record in this appli- ling $47 million in deposits, representing approxication points to areas for improvement in the CRA mately 4 percent of total deposits in depository instiperformance of Old National Bank, particularly in tutions in the market. Upon consummation of this commercial and housing-related lending. Old National proposal, Old National would remain the largest de- Bank has initiated steps designed to strengthen its pository institution in the market, controlling $147.5 CRA performance and the Board expects to see im- million in deposits, representing approximately 25.3 provement in these areas. The Board also expects Old percent of total deposits in depository institutions in National Bank to implement fully the CRA initiatives the market. The Herfindahl-Hirschman Index and commitments discussed in this Order and con- ("HHI") would increase by 233 to 1420.27 After contained in its applications. Old National's progress in implementing these initiatives and commitments and 24. Old National has committed that Bank South will be merged into strengthening its performance in the areas discussed in its subsidiary bank simultaneously with its acquisition and will not be this Order will be monitored by the Federal Reserve operated as a separate subsidiary. Old National has also committed Bank of St. Louis and will be assessed in connection that Bank South's real estate subsidiary, which holds vacant real estate, will be liquidated within two years of consummation of this with future applications to expand its deposit-taking proposal and will not conduct any new real estate activities during this facilities. two-year period. 25. The Harrisburg banking market is approximated by the counties of Gallatin, Hardin, Saline and Pope (except for Jefferson No. 4 Acquisition of Southern under Section 4 of the BHC precinct), all in Illinois. Act 26. In this context, depository institutions include commercial banks, savings banks and savings associations. Market share data before consummation are based on calculations in which the deposits Old National has applied under section 4(c)(8) of the of thrift institutions are included at 50 percent. The Board previously BHC Act to acquire Southern as part of its proposal to has indicated that thrift institutions have become, or have the potential to become, major competitors of commercial banks. See First merge Southern's thrift subsidiary, Bank South, with Hawaiian, Inc., 77 Federal Reserve Bulletin 52, 55 (1991); National Old National's subsidiary bank, First National Bank of City Corporation, 70 Federal Reserve Bulletin 743 (1984). Because the deposits of Bank South would be transferred to a commercial bank Harrisburg. The Board has previously determined that under this proposal, those deposits are included at 100 percent in the the operation of a savings association is closely related calculation of pro forma market share. See First Banks, Inc., 76 to banking for purposes of section 4(c)(8) of the BHC Federal Reserve Bulletin 669, 670 n.9 (1990); Norwest Corporation, 78 Federal Reserve Bulletin 452 (1992). Act, and, therefore, permissible for bank holding 27. Under the revised Department of Justice Merger Guidelines, 49 Federal Register 26,823 (June 29, 1984), a market in which the post-merger HHI is between 1000 and 1800 is considered moderately 23. Old National Bank claims to offer this program as an alternative concentrated. A market in which the post-merger HHI is above 1800 to FHA and VA loans which it believes are less attractive to low- and is considered to be highly concentrated, and the Justice Department moderate-income borrowers and more difficult to process. is likely to challenge a merger that increases the HHI by more than Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 61 sidering the competition offered by other depository bank that Old National was applying to acquire institutions in the market, the number of competitors directly. See 12 U.S.C. § 1815(d)(3). remaining in the market, the increase in concentration as measured by the HHI, and other facts of record, the Conclusion Board concludes that consummation of the proposals would not result in a significantly adverse effect on Based on the foregoing and other factors of record, competition in the Harrisburg banking market or any including the commitments made by Old National in other relevant banking markets. connection with these applications, the Board has There is also no evidence in the record to indicate determined that the applications should be, and hereby that approval of this proposal would result in any other are, approved. The Board's approval of these propossignificantly adverse effects, such as undue concentra- als is specifically conditioned on compliance with tion of resources, conflicts of interests, or unsound these commitments and conditions. These commitbanking practices. Accordingly, the Board has deter- ments and conditions are both conditions imposed in mined that the balance of public interest factors that writing by the Board in connection with its findings the Board must consider under section 4(c)(8) of the and decision and, as such, may be enforced in pro- BHC Act is favorable and consistent with approval. ceedings under applicable law. This approval is also conditioned upon Old National receiving all necessary Merger of Bank South with First National Bank Federal and state approvals. The transactions apunder the Bank Merger Act proved in this Order shall not be consummated before the thirtieth calendar day following the effective date Section 5(d)(3) of the FDI Act requires the Board to of this Order, or later than three months after the follow the procedures and consider the factors set forth effective date of this Order, unless such period is in the Bank Merger Act. These factors include consid- extended for good cause by the Federal Reserve Bank erations relating to competition, financial and manage- of St. Louis, pursuant to delegated authority. rial resources, and future prospects of the existing and By order of the Board of Governors, effective proposed institutions, and the convenience and needs November 30, 1992. of the communities to be served. 12 U.S.C. § 1828(c). For the reasons discussed above, and on the basis of all Voting for this action: Chairman Greenspan and Governors of the facts of record, the Board believes that these Mullins, Angell, Kelley, LaWare, Lindsey, and Phillips. factors are consistent with approval. The Board has also considered the factors required JENNIFER J. JOHNSON Associate Secretary of the Board under section 5(d)(3) of the FDI Act. In this regard, the record in this case shows that: Order Issued Under Bank Merger Act (1) The transaction will not result in the transfer of any federally insured depository institution's federal The Bank of New York deposit insurance from one federal deposit insur- New York, New York ance fund to the other; (2) Old National and First National Bank currently Order Approving Acquisition of Certain Assets and meet, and upon consummation of the proposed Assumption of Certain Liabilities of a Bank and transaction will continue to meet, all applicable Establishment of Branches capital standards; and (3) Since Illinois law allows the acquisition of an The Bank of New York, New York, New York Illinois bank by an Indiana bank holding company, ("BNY"), a state member bank, has applied pursuant the proposed transaction would comply with the to section 18(c) of the Federal Deposit Insurance Act Douglas Amendment if Bank South were a state (12 U.S.C. § 1828(c)) (the "Bank Merger Act"), to purchase certain assets and assume certain liabilities of Barclays Bank of New York, N.A., New York, New York ("Barclays"). BNY also has applied pur- 50 points. The Justice Department has informed the Board that a suant to section 9 of the Federal Reserve Act bank merger or acquisition generally will not be challenged (in the absence of other factors indicating anticompetitive effects) unless (12 U.S.C. § 321 et seq.) to establish branch offices at the post-merger HHI is at least 1800 and the merger increases the 62 of the 65 current branch sites of Barclays.1 HHI by more than 200 points. The Justice Department has stated that the higher than normal HHI thresholds for screening bank mergers for anticompetitive effects implicitly recognize the competitive effect of limited-purpose lenders and other non-depository 1. The locations of the 62 proposed branch offices are set forth in the financial entities. Appendix. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 Federal Reserve Bulletin • January 1993 Notice of these applications, affording interested competitors remaining in these markets6 as well as the persons an opportunity to submit comments, has been level of and the increase in market concentration7 given in accordance with the Bank Merger Act and the following consummation of this proposal. The Attor- Board's Rules of Procedure (12 C.F.R. 262.3(b)). As ney General has indicated that the proposal would not required by the Bank Merger Act, reports on the have a significantly adverse effect on competition in competitive effects of the proposal were requested any relevant banking market. Neither the OCC nor the from the United States Attorney General, the Office of FDIC has provided any objection to consummation of the Comptroller of the Currency, and the Federal this proposal or indicated that the proposal would have Deposit Insurance Corporation. The time for filing any significantly adverse competitive effects. comments has expired, and the Board has considered On the basis of these and other facts of record, the the applications and all comments received in light of Board concludes that consummation of this proposal the factors set forth in the Bank Merger Act and in would not have a significantly adverse effect on comsection 9 of the Federal Reserve Act. petition in the Metropolitan New York-New Jersey, BNY is the fourth largest commercial banking orga- the Mid-Hudson, or any other relevant banking marnization in the state of New York, controlling deposits ket. of $18.9 billion, representing approximately 17.4 percent of total deposits in commercial banking organiza- Convenience and Needs Considerations tions in the state.2 The Barclays's offices to be acquired by BNY control deposits of $2.2 billion, In considering an application under the Bank Merger representing approximately 1.0 percent of total depos- Act and the Federal Reserve Act, the Board must its in commercial banks in the state. Upon consumma- consider the convenience and needs of the communition of this proposal, BNY would remain the fourth ties to be served, and take into account the records of largest commercial banking organization in the state, the relevant depository institutions under the Commucontrolling deposits of $21.1 billion, representing ap- nity Reinvestment Act (12 U.S.C. § 2901 et seq.) proximately 18.4 percent of commercial deposits in ("CRA"). The CRA requires the federal financial New York State. supervisory agencies to encourage financial institu- BNY and Barclays compete directly in the Metro- tions to help meet the credit needs of the local compolitan New York-New Jersey3 and Mid-Hudson munities in which they operate, consistent with the banking markets.4 Upon consummation of this pro- safe and sound operation of such institutions. To posal, the Metropolitan New York-New Jersey bank- accomplish this end, the CRA requires the appropriate ing market would remain unconcentrated and the federal supervisory authority to "assess the institu- Mid-Hudson banking market would remain moder- tion's record of meeting the credit needs of its entire ately concentrated.5 The Board has carefully consid- community, including low- and moderate-income ered the competition offered by other depository insti- neighborhoods, consistent with the safe and sound operation of such institution," and to take that record tutions in these markets and the number of into account in its evaluation of bank holding company applications.8 2. Data are as of June 30, 1992. In connection with this application, the Board has 3. The Metropolitan New York-New Jersey banking market is approximated by Bronx, Kings, Nassau, New York, Orange, Putnam, received comments from two organizations and an Queens, Richmond, Rockland, Suffolk, Sullivan, and Westchester Counties in New York State; Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union and Warren Counties in New Jersey; Darien, Greenwich, New 6. In this context, depository institutions include commercial banks, Canaan, Norwalk, Redding, and Ridgefield municipalities and Stam- savings banks, and savings associations, and market share data are ford, Weston, Westport, and Wilton townships in Fairfield County, based on calculations in which the deposits of thrift institutions are Connecticut. included at 50 percent. The Board previously has indicated that thrift 4. The Mid-Hudson banking market consists of Dutchess and Ulster institutions have become, or have the potential to become, significant Counties in New York. competitors of commercial banks. First Union Corporation, 76 Fed- 5. Under the revised Department of Justice Merger Guidelines eral Reserve Bulletin 83 (1990); Midwest Financial Group, 75 Federal (49 Federal Register 26,823 (June 29, 1984)), a market in which the Reserve Bulletin 386 (1989). Upon consummation of this proposal, post-merger Herfindahl-Hirschman Index ("HHI") is less than 1000 BNY would remain the fourth largest of 326 depository institution in is considered unconcentrated. A market with a post-merger HHI the Metropolitan New York-New Jersey banking market, controlling between 1000 and 1800 is considered moderately concentrated. The approximately 6 percent of the total deposits in depository institutions Justice Department has informed the Board that a bank merger or in the market ("market deposits"). In the Mid-Hudson banking acquisition generally will not be challenged (in the absence of other market, BNY would become the largest of 26 depository institutions, factors indicating anti-competitive effects) unless the post-merger controlling approximately 16 percent of market deposits. HHI is at least 1800 and the merger increases the HHI by 200 points. 7. The HHI in the Metropolitan New York-New Jersey banking The Justice Department has stated that the higher than normal HHI market would increase 7 points to 554 upon consummation of this thresholds for screening bank mergers for anti-competitive effects proposal, and the HHI would increase 230 points to 1407 in the implicitly recognize the competitive effect of limited-purpose lend- Mid-Hudson banking market. ers and other non-depository financial entities. 8. 12 U.S.C. § 2903. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 63 individual ("Protestants") alleging that BNY has im- gious, charitable, housing, and economic development properly excluded the Bronx and Northern Manhattan organizations located in each of the communities from its delineated CRA communities. Protestants served by the bank. In addition, BNY identifies credit further allege that BNY has failed to ascertain and needs through the bank's business call program, direct meet credit needs in these areas because of this mail and telephone surveys, product studies, focus exclusion. groups, information gathered by outside commercial The Board has carefully reviewed the CRA perfor- sources, and other special ascertainment programs. mance records of BNY, as well as all comments The presidents and community relations officers of received, the responses to those comments, and all of BNY's six community banking divisions are responsithe other relevant facts of record in light of the CRA, ble for coordinating and monitoring the bank's ascerthe Board's regulations, and the Statement of the tainment efforts. Each community relations officer is Federal Financial Supervisory Agencies Regarding the responsible for documenting the division's ascertain- Community Reinvestment Act ("Agency CRA State- ment efforts, and for preparing monthly reports on the ment").9 In weighing the comments made by Protes- division's CRA activities for the bank's CRA coorditants, the Board notes that, in response to these nator. BNY also determines the credit needs of its comments as well as findings made in a recent exam- communities through its Custom Banking Group and ination for CRA performance conducted by the Fed- its recently formed Non-Profit Institution Group. eral Reserve Bank of New York in September 1992, BNY's mortgage company affiliate also plays a BNY has revised its community delineation to include major role in the bank's overall ascertainment proall of New York County (Manhattan), Bronx County gram. The mortgage company conducts a variety of and Kings County (Brooklyn). BNY already offers a seminars and workshops for both real estate profesnumber of credit products and services in these areas, sionals and prospective first-time home buyers and the Board expects BNY to implement in these throughout its community.11 Through these programs, areas the same types and quality of CRA programs BNY seeks to assess the credit needs of its delineated that BNY has established in other areas it serves. communities and other neighboring areas. In this regard, the Board notes that BNY received BNY markets its products and services through a an overall "satisfactory" rating in the examination of variety of advertising activities, including print media CRA performance conducted by the Federal Reserve (mass circulation, local, business, and ethnic newspa- Bank of New York as of July 1992.10 BNY has in place pers and journals), radio, statement stuffers, brothe type of policies outlined in the Agency CRA chures and railroad posters. BNY also advertises in all Statement that contribute to an effective CRA pro- of its delineated communities, advertises in both the gram. For example, the board of directors of BNY has English and Spanish language, and utilizes targeted adopted a detailed policy statement of "Responsibili- multi-ethnic marketing strategies. ties and Commitments Under the Community Rein- BNY's ascertainment efforts have resulted in sevvestment Act," and established a CRA program with eral programs enabling the bank to meet the credit specific goals, objectives, and methodology for self- needs of its communities, including low- and moderassessment. In addition, the board has formed a CRA ate-income areas. For example, BNY participates in committee, comprised of both directors and senior various programs sponsored by governmentally guarbank officers, to ensure that the bank fulfills its CRA anteed, insured, or subsidized loan programs for housresponsibilities. BNY's CRA committee meets at least ing, small businesses, or small farms (including prothree times each year to evaluate the bank's CRA grams sponsored by the Federal National Mortgage performance, and reports its findings to the entire Association, the State of New York Mortgage Assoboard of directors at least annually. The most recent ciation, and the City of New York Municipal Finance CRA examination of BNY confirms that the bank's Department). Moreover, BNY is an active lender to board of directors and senior management exercise housing, economic development, and other not-foractive CRA policy oversight, and performs self-assess- profit community organizations, both within its delinment of the bank's CRA activities on a regular basis. eated communities and adjacent communities. BNY BNY ascertains community credit needs through a also has provided considerable financial assistance to multi-layered approach to community outreach. For community organizations that provide housing, job example, many of BNY's officers and employees are training, health and counseling services. active in a large number of community, civic, reli- 9. 54 Federal Register 13,742 (1989). 11. The mortgage company also offers prospective home-buyers a 10. BNY also received a satisfactory CRA performance rating in its series of classes and counselling sessions through its Community previous examination as of March 4, 1991. Home Buyer Program. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 Federal Reserve Bulletin • January 1993 BNY's mortgage company affiliate offers a wide managerial factors14 and future prospects of BNY and variety of loans, including conventional loans, fixed- Barclays are consistent with approval of these applirate loans and adjustable-rate loans, Federal Housing cations. The Board has also considered the factors it is Administration loans, and Veterans Administration required to consider when approving applications for loans. These loans include special credit features such establishment of branches pursuant to section 9 of the as low down-payments, below-market rates, or Federal Reserve Act and finds those factors to be step-up programs for low- and moderate-income bor- consistent with approval. rowers. BNY's mortgage company affiliate also has Based on the foregoing and all of the facts of record, participated in several New York City Housing Pro- the Board has determined that these applications gram and Federal National Mortgage Association should be, and hereby are, approved. The Board's projects located in or targeted to low- and moderate- approval is specifically conditioned upon compliance income areas.12 by BNY with all the commitments made in its appli- The considerations discussed above and other facts cation, as supplemented, and compliance with the of record indicate that the CRA performance of BNY conditions discussed above. For purposes of this acis generally satisfactory. In order to permit the Board tion, the commitments and conditions discussed in this to monitor BNY's implementation of its CRA policies Order are both considered conditions imposed in writand programs in its newly delineated service area of ing by the Board in connection with its findings and New York, Bronx and Kings Counties, BNY must decisions, and, as such, may be enforced in proceedsubmit a written report to the Board on its progress in ings under applicable law. implementing its programs and policies in these areas This transaction should not be consummated before within 6 months of consummation of the proposal, and the thirtieth calendar day following the effective date submit quarterly written reports thereafter until noti- of this Order, or later than three months, unless such fied by the Board. The Board will consider BNY's period is extended for good cause by the Board or the progress in complying with these conditions and im- Federal Reserve Bank of New York, acting pursuant plementing these initiatives in future applications to to delegated authority. expand its deposit-taking facilities. By order of the Board of Governors, effective On this basis, the Board concludes that the conve- November 4, 1992. nience and needs considerations, including the CRA performance record of BNY, are consistent with ap- Voting for this action: Chairman Greenspan and Governors proval of these applications.13 Mullins, Angell, Kelley, La Ware, Lindsey, and Phillips. Other Considerations JENNIFER J. JOHNSON Associate Secretary of the Board The Bank Merger Act also requires the Board to Appendix consider the financial and managerial resources and future prospects of the existing and proposed institu- Dutchess County tions, and the effect on those resources of the proposed acquisition. On the basis of all the facts of 17 Market Street record, the Board concludes that the financial and Poughkeepsie, N.Y. 12601 12. BNY also arranges reduced-rate loans for insulation, new heating units, and similar energy conservation efforts through pro- 14. In addressing the managerial considerations of this proposed, the grams established by Consolidated Edison, the Long Island Lighting Board has carefully considered several comments from individuals Company, and other utilities. involved in disputes, and in some instances legal actions, with either 13. Protestants have requested the Board to hold a public meeting or BNY or Barclays arising from specific transactions. The comments hearing on these applications. The Board is not required under the relating to BNY allege that the bank improperly refused to release Bank Merger Act or the Federal Reserve Act to hold a public hearing funds in a trust account and failed to re-credit an account for alleged or meeting in this case. Under the Board's rules, the Board may, in its unauthorized ATM cash withdrawals. In the case of Barclays, the discretion, hold a public hearing or meeting on an application to clarify commenter has filed a counterclaim against the bank in a pending factual issues related to the application and to provide an opportunity lawsuit to collect a debt which has been noted as a contingent liability for testimony, if appropriate. 12 U.S.C. §§ 262.3(e) and 262.25(d). assumed by BNY under the proposal. The Board has reviewed these The Board has carefully considered this request. In the Board's comments in light of all the facts of record in this case, including view, interested parties have had a sufficient opportunity to present information responding to these comments provided by BNY and written submissions, and have submitted substantial written com- information from examination reports. Based on this review, the ments that have been considered by the Board. In light of this, the Board concludes that these comments do not reflect so adversely upon Board has determined that a public meeting or hearing is not necessary the managerial resources of BNY or Barclays as to warrant denial of to clarify the factual record in these applications, or otherwise these applications. The Board also notes that the pending litigation warranted in this case. Accordingly, the request for a public meeting involving these disputes should provide the commenters with an or hearing on these applications is hereby denied. adequate remedy in the event their allegations are substantiated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 65 709 Main Street 57-27 Main Street Poughkeepsie, N.Y. 12601 Flushing, N.Y. 11355 Route 9, Hyde Park Mall 100-26 Queens Boulevard Hyde Park, N.Y. 12538 Forest Hills, N.Y. 11375 Main Street 77-01 31st Avenue Pleasant Valley, N.Y. 12569 Jackson Heights, N.Y. 11370 7 Vassar Road 138-02 Queens Boulevard Poughkeepsie, N.Y. 12603 Jamaica, N.Y. 11435 Nassau County Rockland County 170 Conklin Street 526 Main Street Farmingdale, N.Y. 11735 Sparkill, N.Y. 10976 55 Northern Boulevard Route 9W and Central Drive Great Neck, N.Y. 11021 Stony Point, N.Y. 10980 390 North Broadway 59 Route 59 Jericho, N.Y. 11753 Suffern, N.Y. 10901 1636 Marcus Avenue 316 South Main Street New Hyde Park, N.Y. 11040 New City, N.Y. 10956 164 Manetto Hill Road 65 Dutch Hill Road Plain view, N.Y. 11803 Orangeburg, N.Y. 10962 372 Sunrise Highway 456 North Middletown Road Rockville Centre, N.Y. 11570 Pearl River, N.Y. 10965 1000 Railroad Avenue 302 North Main Street Woodmere, N.Y. 11598 Spring Valley, N.Y. 10977 80 Old Tappan Road New York County Tappan,N.Y. 10983 300 Park Avenue Suffolk County New York, N.Y. 10022 115 East Main Street Orange County Patchogue, N.Y. 11772 505 Hawkins Avenue 353 Windsor Highway Ronkonkoma, N.Y. 11779 New Windsor, N.Y. 12550 920 Middle Country Road Route 211 East Selden, N.Y. 11784 Middletown, N.Y. 10940 2271 Route 112 Medford, N.Y. 11763 Queens County 604 Broad Hollow Road Melville, N.Y. 11747 41-22 Bell Boulevard 20 Point Plaza Bayside, N.Y. 11361 Rocky Point, N.Y. 11778 186-03 Union Turnpike 222 Middle Country Road Flushing, N.Y. 11366 Smithtown, N.Y. 11787 29-37 41st Avenue 403 North Little East Neck Road Long Island City, N.Y. 11101 West Babylon, N.Y. 11704 221-50 Horace Harding Boulevard Bayside, N.Y. 11364 Ulster County 132-07 14th Avenue College Point, N.Y. 11356 40-30 National Street 80 Smith Avenue Corona, N.Y. 11368 Kingston, N.Y. 12401 36-63 Main Street 301 Wall Street Flushing, N.Y. 11354 Kingston, N.Y. 12401 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 Federal Reserve Bulletin • January 1993 9 Plattekill Avenue November 3, 1992 New Paltz, N.Y. 12561 Mr. Douglas E. Harris Kingston Shopping Plaza Assistant General Counsel Kingston, N.Y. 12401 J.P. Morgan & Co. Incorporated 60 Wall Street Westchester County New York, New York 10260 1100 Pleasantville Road Dear Mr. Harris: Briarcliff, N.Y. 10510 As requested in your letter of August 13, 1992, the 491 Main Street Board of Governors grants its consent to Morgan New Rochelle, N.Y. 10802 Guaranty International Finance Corporation 528 North Avenue ("MGIFC"), New York, New York, to engage New Rochelle, N.Y. 10801 through its subsidiary, J.P. Morgan SIM S.p.A. 493 New Rochelle Road ("JPMSIM"), in the execution and clearance of cer- Bronxville, N.Y. 10708 tain futures contracts on the Mercato Italiano Futures 132 Parkway Road ("MIF"), Milan, Italy, a new Italian futures exchange. Bronxville, N.Y. 10708 JPMSIM would act as a futures commission mer- 213 Mamaroneck Avenue chant ("FCM") with respect to a ten-year notional Mamaroneck, N.Y. 10543 Italian Government Bond futures contract, futures 185 North Bedford Road contracts of the kind listed in section 225.25(b)(18) of Mt. Kisco, N.Y. 10549 Regulation Y, and options on these contracts. In 88-90 Croton Avenue taking this action, the Board has relied on MGIFC's Ossining, N.Y. 10562 commitment that the FCM activities of JPMSIM on 382 Pelham Road MIF will be conducted in accordance with the limita- New Rochelle, N.Y. 10805 tions specified in section 225.25(b)(18) of Regulation Y. 680 Main Street The Board has also delegated to the Federal Reserve New Rochelle, N.Y. 10801 Bank of New York authority to approve additional 1293 North Avenue financial contracts involving products that the Board New Rochelle, N.Y. 10804 has reviewed and approved previously but that are not 103 Adee Street specifically covered by Regulation Y. Proposals in- Port Chester, N.Y. 10573 volving products that have not been reviewed previ- 100 Purchase Street ously by the Board continue to require the specific Rye, N.Y. 10580 consent of the Board. 500 Westchester Avenue The Reserve Bank should be notified promptly of Rye Brook, N.Y. 10573 any prospective substantial changes in the activities 138 and 140 Mamaroneck Avenue of MIF or in Morgan's financial operations in Italy White Plains, N.Y. 10601 that would materially increase the potential liability 1940 Commerce Street of the Morgan organization in conducting activities Yorktown Heights, N.Y. 10598 on the MIF. The Board expects that the Morgan organization and MGIFC will comply with any conditions that the Board may impose after reviewing Order Issued Under Federal Reserve Act such changes. Morgan Guaranty International Finance Very truly yours, Corporation New York, New York Jennifer J. Johnson Associate Secretary of the Board Order Approving Application Under Section 25A of the Federal Reserve Act to Engage in Certain cc: Vice President Rutledge Futures Commission Merchant Activities in Italy Federal Reserve Bank of New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 67 ACTIONS TAKEN UNDER THE FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT ACT OF 1991 By the Director of the Division of Banking Supervision and Regulation and the General Counsel of the Board Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Acquired Surviving Approval Bank Holding Company Thrift Bank(s) Date AmSouth Bancorporation, First Federal Bank, AmSouth Bank of November 13, 1992 Birmingham, Alabama F.S.B., Georgia, Chattanooga, Summerville, Tennessee Georgia BOK Financial Corporation, First Gibraltar, FSB, Bank of Oklahoma, November 3, 1992 Tulsa, Oklahoma Irving, Texas N.A., Tulsa, Oklahoma Capital City Bank Group, Inc., First Federal Savings Branford State Bank, November 6, 1992 Tallahassee, Florida Bank of Perry, Branford, Florida Perry, Florida The Colonial BancGroup, Auburn Federal Savings Colonial Bank, November 3, 1992 Montgomery, Alabama Bank, Montgomery, Auburn, Alabama Alabama First Alabama Bancshares, Inc., Security Federal Savings First Security Bank November 25, 1992 Montgomery, Alabama and Loan Association, of Tennessee, Nashville, Tennessee Nashville, Tennessee First Citizens Bancorp of Colonial Central Savings Citizens Banking November 2, 1992 Indiana, Bank, F.S.B., Company, Anderson, Indiana Mount Clemens, Anderson, Indiana Michigan First Citizens Bancorporation of First State Savings and First Citizens Bank November 2, 1992 South Carolina, Inc., Loan, a division of and Trust Company Columbia, South Carolina Poughkeepsie Savings of South Carolina, Bank, FSB, Columbia, Poughkeepsie, South Carolina New York First Union Corporation, South Carolina Federal First Union National October 30, 1992 Charlotte, North Carolina Savings Bank, Bank of South Columbia, Carolina, South Carolina Greenville, South Carolina Fourth Financial Corporation, First Gibraltar Bank, Bank IV Oklahoma, November 6, 1992 Wichita, Kansas FSB, N.A., Irving, Texas Tulsa, Oklahoma Heritage Financial Services, First Chicago Bank for Heritage Bank & November 6, 1992 Tinley Park, Illinois Savings, F.S.B., Trust Company, Frankfort, Illinois Blue Island, Illinois Mid-Citco Incorporated, First Western Federal Union Bank and October 30, 1992 Chicago, Illinois Savings and Loan Trust Company, Association, Oklahoma City, Oklahoma City, Oklahoma Oklahoma Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Federal Reserve Bulletin • January 1993 FDICIA Orders—Continued Acquired Surviving Approval Bank Holding Company Thrift Bank(s) Date Old Kent Financial Corporation, First Federal of Elgin, Old Kent Bank, November 17, 1992 Grand Rapids, Michigan Elgin, Illinois Elmhurst, Illinois Old Kent-Illinois, Inc., Elmhurst, Illinois United Bancorp, Inc., Standard Federal Bank, United Bank & Trust, November 2, 1992 Tecumseh, Michigan Troy, Michigan Tecumseh, Michigan 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 Applicant(s) Bank(s) ^Date^ Golden Plains Bankshares, Inc., Logan Bancshares, Inc., November 30, 1992 Phillipsburg, Kansas Logan, Kansas Section 4 Applicant(s) Bank(s) Effective Date Fleet Financial Group, Inc., Fleet Management and Recovery November 3, 1992 Providence, Rhode Island Corporation, Boston, Massachusetts APPLICATIONS APPROVED UNDER BANK MERGER ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 4 Applicant(s) Bank(s) Effective Date SouthTrust Bank of West Florida, SouthTrust Bank of Tampa, November 18, 1992 St. Petersburg, Florida Tampa, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 69 APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Section 3 Reserve Effective Applicant(s) Bank(s) Bank Date Albrecht Financial Services, Inc. Norwalk-Cumming State Chicago November 6, 1992 Wall Lake, Iowa Bank, Norwalk, Iowa Area Bancshares Corporation, Southern Deposit Bank, St. Louis November 24, 1992 Owensboro, Kentucky Russellville, Kentucky Centura Banks, Inc., Centura Interim Bank, Richmond November 18, 1992 Rocky Mount, North Carolina Brevard, North Carolina Chisholm Bancshares, Inc., Farmers & Merchants Minneapolis November 9, 1992 Chisholm, Minnesota State Bank, Cook, Minnesota Citizens Bancorporation of Lafayette Bancshares, Minneapolis November 20, 1992 New Ulm, Inc., Inc., New Ulm, Minnesota Lafayette, Minnesota Citizens Holding Corporation, Citizens Bank of Atlanta October 30, 1992 Clearwater, Florida Clearwater, Clearwater, Florida Citizens National Corporation, The First National Bank Kansas City November 24, 1992 Wisner, Nebraska of Belden, Belden, Nebraska City Holding Company, The Buffalo Bank, Richmond November 23, 1992 Charleston, West Virginia Eleanor, West Virginia Fairmount Banking Company, The Fairmount State Chicago October 30, 1992 Fairmount, Indiana Bank, Fairmount, Indiana Fairview Bancorporation, Inc., Fairview Bank, Minneapolis November 23, 1992 Fairview, Montana Fairview, Montana First Community Bancorp, Inc., First Community Bank of Atlanta November 4, 1992 Shelbyville, Tennessee Bedford County, Shelbyville, Tennessee Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Federal Reserve Bulletin • January 1993 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date First Dakota Financial McCook Bancshares, Minneapolis October 23, 1992 Corporation, Inc., Yankton, South Dakota Salem, South Dakota First Financial Bancorp., Jennings Union Cleveland October 22, 1992 Hamilton, Ohio Bankcorp, North Vernon, Indiana First Western Corporation, Citywide Bank of Kansas City November 12, 1992 Kimball, Nebraska Northglenn, Northglenn, Colorado Fourth Financial Corporation, Fourth National Kansas City November 6, 1992 Wichita, Kansas Corporation, Tulsa, Oklahoma Fourth Financial Corporation, Southern Bancorp, Inc., Kansas City October 28, 1992 Wichita, Kansas Tulsa, Oklahoma Frandsen Financial Corporation, Citizens State Bank of Minneapolis November 19, 1992 Forest Lake, Minnesota East Grand Forks, East Grand Forks, Minnesota First State Bank of Ada, Ada, Minnesota Nimrod Enterprises, Inc., Foley, Minnesota The Gilmanton Co., Gilman, Minnesota Great Lakes Financial Great Lakes Financial Chicago November 12, 1992 Resources, Inc., Employee Resources, Inc., Stock Ownership Plan, Homewood, Illinois Homewood, Illinois Heritage Financial Services, Inc. Alsip Bancorporation, Chicago November 18, 1992 Blue Island, Illinois Inc., Alsip, Illinois H & H Holding Company, Greene County National St. Louis November 3, 1992 Alton, Illinois Bank in Carrollton, Carrollton, Illinois Godfrey State Bank, Godfrey, Illinois Killbuck Bancshares, Inc., The Killbuck Savings Cleveland October 22, 1992 Killbuck, Ohio Bank Company, Killbuck, Ohio Milk River Investments, Inc., The First National Bank Minneapolis November 18, 1992 Glasgow, Montana of Glasgow, Glasgow, Montana Minnesota Banc Holding Citizens State Bank of Minneapolis October 30, 1992 Company, Montgomery, Plymouth, Minnesota Montgomery, Minnesota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 71 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date Norwest Corporation, Rocky Mountain Minneapolis October 29, 1992 Minneapolis, Minnesota Bankshares, Inc., Norwest Colorado, Inc., Golden Valley, Denver, Colorado Minnesota Olney Bancorp of Delaware, First Coleman National Dallas November 6, 1992 Inc., Bank of Coleman, Wilmington, Delaware Coleman, Texas Olney Bancshares, Inc., First Coleman National Dallas November 6, 1992 Olney, Texas Bank of Coleman, Coleman, Texas PSB Corporation, First National Bank of Chicago November 2, 1992 Wellsburg, Iowa Sumner, Sumner, Iowa State First Financial Corporation, First National Bank of St. Louis November 5, 1992 Texarkana, Arkansas Nashville, Nashville, Arkansas St. Stephen BanGroup, Inc., St. Stephen Bancorpo- Minneapolis October 23, 1992 Minneapolis, Minnesota ration, Inc., Sunfish Lake, Minnesota TeamBanc, Inc., Century Bancshares, Inc., Kansas City November 16, 1992 Paola, Kansas Parsons, Kansas TeamBanc, Inc. Employees' Stock Ownership Plan, Paola, Kansas West River Holding Company, West River State Bank, Minneapolis November 9, 1992 Inc., Hettinger, Hettinger, North Dakota North Dakota Section 4 Nonbanking Reserve Effective Applicant(s) Activity/ Company Bank Date Amboy Bancorporation, Woodhaven at South New York November 25, 1992 Old Bridge, New Jersey Brunswick, L.P., South Brunswick, New Jersey Centura Banks, Inc., Brevard Federal Savings Richmond November 18, 1992 Rocky Mount, North Carolina and Loan Association, Brevard, North Carolina Chemical Banking Corporation, Bank of America National New York October 22, 1992 New York, New York Trust and Savings Association, San Francisco, California Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Federal Reserve Bulletin • January 1993 Section 4—continued Nonbanking Reserve Effective Applicant(s) Activity/ Company Bank Date CNB Bancshares, Inc., First Federal Savings St. Louis October 22, 1992 Evansville, Indiana Bank of Kentucky, Madisonville, Kentucky First Home Services Corporation, Madisonville, Kentucky Comerica Incorporated, William Street Chicago November 24, 1992 Detroit, Michigan Apartments Limited Partnership, Ann Arbor, Michigan First Union Corporation, PSFS Thrift Holding Richmond November 23, 1992 Charlotte, North Carolina Company, Philadelphia, Pennsylvania First Western Corporation, Citywide Bank of Kansas City November 13, 1992 Kimball, Nebraska Northglenn, Northglenn, Colorado F.N.B. Corporation, Reliance Consumer Cleveland October 29, 1992 Hermitage, Pennsylvania Discount Company, Hanover, Pennsylvania Marquette Bancshares, Inc., to engage in making, Minneapolis November 25, 1992 Minneapolis, Minnesota acquiring, and servicing loans and providing data processing and data transmission services, facilities, databases, and access to such services, facilities, and databases to financial institutions Mid Am, Inc., Apollo Savings and Loan Cleveland October 29, 1992 Bowling Green, Ohio Company, Cincinnati, Ohio Pinnacle Banc Group, Inc., Batavia Financial Chicago November 20, 1992 Oak Brook, Illinois Corporation, Batavia, Illinois Redwood Empire Bancorp, Lake Savings and Loan San Francisco October 29, 1992 Santa Rosa, California Association, Lakeport, California Security Richland First West Insurance, Minneapolis November 25, 1992 Bancorporation, Inc., Miles City, Montana Miles City, Montana Story County Bancorporation, Viking Village Company, Chicago October 23, 1992 Jewell, Iowa L.P., Jewell, Iowa Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 73 Sections 3 and 4 Nonbanking Effective Applicant(s) Reserve Bank Activity/Company Date Concord EFS, Inc., EFS National Bank, St. Louis October 30, 1992 Memphis, Tennessee Memphis, Tennessee Concord Computing Corporation, Elk Grove Village, Illinois Network EFT, Inc., Elk Grove Village, Illinois VMT, Inc., Memphis, Tennessee Hansen-Lawrence Agency, Inc., First Hysham Holding Minneapolis October 29, 1992 Worden, Montana Company, Hysham, Montana Farmers State Bank of Worden, Worden, Montana First Insurance Agency, Inc., Hysham, Montana Norwest Corporation, Lincoln Financial Minneapolis November 20, 1992 Minneapolis, Minnesota Corporation, Fort Wayne, Indiana APPLICATIONS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Reserve Effective Applicant(s) Bank(s) Bank Date Farmers State Bank of Worden, The First National Bank Minneapolis October 29, 1992 Worden, Montana in Hysham, Hysham, Montana Centura Interim Bank, Centura Bank, Richmond November 18, 1992 Brevard, North Carolina Rocky Mount, North Carolina KSB Bank, The Killbuck Savings Cleveland October 22, 1992 Killbuck, Ohio Bank Company, Killbuck, Ohio Old Kent Bank, UnibancTrust/DuPage, Chicago November 17, 1992 Elmhurst, Illinois First Federal of Elgin, Elgin, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Federal Reserve Bulletin • January 1993 PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits the district court order in part, but held that the bank against the Federal Reserve Banks in which the Board examination privilege was not waived by the agenof Governors is not named a party. cies' provision of examination materials to the examined institution, and remanded for further consideration of the privilege issue. DLG Financial Corporation v. Board of Governors, No. 392 Civ. 2086-G (N.D. Texas, filed October 9, First Interstate BancSystem of Montana, Inc. v. 1992). Action to enjoin the Board and the Federal Board of Governors, No. 91-1525 (D.C. Cir., filed Reserve Bank of Dallas from taking certain enforce- November 1, 1991). Petition for review of Board's ment actions, and seeking money damages on a order denying on Community Reinvestment Act variety of tort and contract theories. On October 9, grounds the petitioner's application under section 3 1992, the court denied plaintiffs' motion for a tem- of the Bank Holding Company Act to merge with porary restraining order. On November 20, 1992, Commerce BancShares of Wyoming, Inc. On Authe Board filed a motion to dismiss. gust 19, 1992, the court granted petitioner First Castro v. Board of Governors, No. 92-1764 (D. Dis- Interstate's motion for a stay of the proceedings. trict of Columbia, filed July 29, 1992). Freedom of Board of Governors v. Kemal Shoaib, No. CV 91-5152 Information Act case. On November 20,1992, plain- (C.D. California, filed September 24, 1991). Action tiff filed a motion for voluntary dismissal. to freeze assets of individual pending administrative Board of Governors v. bin Mahfouz, No. 92-CIV-5096 adjudication of civil money penalty assessment by (S.D. New York, filed July 8, 1992). Action to freeze the Board. On October 15, 1991, the court issued a assets of individual pending administrative adjudipreliminary injunction restraining the transfer or cation of civil money penalty assessment by the disposition of the individual's assets. Board. On July 8,1992, the court issued a temporary restraining order restraining the transfer or disposi- Board of Governors v. Ghaith R. Pharaon, No. 91tion of the individual's assets. On October 30, the CIV-6250 (S.D. New York, filed September 17, parties filed a stipulation of dismissal without prej- 1991). Action to freeze assets of individual pending udice. administrative adjudication of civil money penalty Zemel v. Board of Governors, No. 92-1057 (D. District assessment by the Board. On September 17, 1991, of Columbia, filed May 4, 1992). Age Discrimination the court issued an order temporarily restraining the in Employment Act case. transfer or disposition of the individual's assets. Fields v. Board of Governors, No. 92-3920 (6th Cir., Fields v. Board of Governors, No. 3:91CV069 (N.D. filed September 14, 1992). Federal Tort Claims Act Ohio, filed February 5, 1991). Appeal of denial of complaint alleging misrepresentation during applicarequest for information under the Freedom of Infortion process. The district court for the Northern mation Act. The Board's motion for summary judg- District of Ohio granted the Board's motion to ment was granted in part and its motion to dismiss dismiss on August 10, 1992. On September 14, 1992, was denied on June 23, 1992. the plaintiff filed a notice of appeal. State of Idaho, Department of Finance v. Board of Governors, No. 92-70107 (9th Cir., filed February 24, 1992). Petition for review of Board order FINAL ENFORCEMENT ORDERS ISSUED BY THE returning without action a bank holding company BOARD OF GOVERNORS application to relocate its subsidiary bank from Washington to Idaho. The Board's brief was filed on June 29, 1992. Oral argument was held Oc- CBC, Inc. tober 6, 1992. Clovis, New Mexico In re Subpoena Served on the Board of Governors, Nos. 91-5427, 91-5428 (D.C. Cir., filed December The Federal Reserve Board announced on Novem- 27, 1991). Appeal of order of district court, dated ber 24, 1992, the issuance of a Final Decision and December 3, 1991, requiring the Board and the Order of Assessment of a Civil Money Penalty against Office of the Comptroller of the Currency to produce CBC, Inc., Clovis, New Mexico, and Lynell G. confidential examination material to a private liti- Skarda, Langdon L. Skarda and Kent Carruthers, gant. On June 26,1992, the court of appeals affirmed institution-affiliated parties of CBC, Inc. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 75 Gaylon M. Lawrence, Sr. Khalid Bin Mahfouz Blytheville, Arkansas Saudi Arabia The Federal Reserve Board announced on Novem- The Federal Reserve Board announced on November 17, 1992, the issuance of an Order of Removal and ber 17, 1992, the execution of a Written Agreement Prohibition against Gaylon M. Lawrence, Sr., an between the Board of Governors of the Federal Reserve institution-affiliated party of the Farmers Bank and System and Khalid Bin Mahfouz, who until recently Trust Company and Farmers Bancorp, Inc., both of controlled the National Commercial Bank, Saudi Arabia. Blytheville, Arkansas. NESB Corp. New London, Connecticut The Federal Reserve Board announced on Novem- WRITTEN AGREEMENTS APPROVED BY FEDERAL ber 6, 1992, the execution of a Written Agreement RESERVE BANKS between the Federal Reserve Bank of Boston and NESB Corp., New London, Connecticut. Columbus Junction State Bank Columbus Junction, Iowa People's Mutual Holdings Bridgeport, Connecticut The Federal Reserve Board announced on November 30, 1992, the execution of a Written Agreement The Federal Reserve Board announced on Novembetween the Federal Reserve Bank of Chicago and the ber 6, 1992, the execution of a Written Agreement Columbus Junction State Bank, Columbus Junction, among the Federal Reserve Bank of New York, the Iowa. Banking Commissioner of the State of Connecticut and People's Mutual Holdings, Bridgeport, Connecticut. Heritage Bank McLean, Virginia Wahoo State Bank Wahoo, Nebraska The Federal Reserve Board announced on November 3, 1992, the execution of a Written Agreement The Federal Reserve Board announced on Novembetween the Federal Reserve Bank of Richmond, the ber 3, 1992, the execution of a Written Agreement Bureau of Financial Institutions of the Common- among the Federal Reserve Bank of Kansas City, the wealth of Virginia and the Heritage Bank, McLean, Nebraska Director of Banking and Finance and the Virginia. Wahoo State Bank, Wahoo, Nebraska. 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 A21 All reporting banks A23 Branches and agencies of foreign banks Domestic Financial Statistics MONEY STOCK AND BANK CREDIT FINANCIAL MARKETS A4 Reserves, money stock, liquid assets, and debt A24 Commercial paper and bankers dollar measures acceptances outstanding A5 Reserves of depository institutions, Reserve Bank A24 Prime rate charged by banks on short-term credit business loans A6 Reserves and borrowings—Depository A25 Interest rates—money and capital markets institutions A26 Stock market—Selected statistics A7 Selected borrowings in immediately available A27 Selected financial institutions—Selected assets funds—Large member banks and liabilities POLICY INSTRUMENTS FEDERAL FINANCE A8 Federal Reserve Bank interest rates A27 Federal fiscal and financing operations A9 Reserve requirements of depository institutions A28 U.S. budget receipts and outlays A10 Federal Reserve open market transactions A29 Federal debt subject to statutory limitation A29 Gross public debt of U.S. Treasury—Types and ownership FEDERAL RESERVE BANKS A30 U.S. government securities dealers—Transactions All Condition and Federal Reserve note statements A31 U.S. government securities dealers—Positions A12 Maturity distribution of loan and security and financing holdings A3 2 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 A33 New security issues—State and local A17 Loans and securities—All commercial banks governments and corporations A34 Open-end investment companies—Net sales and asset position A34 Corporate profits and their distribution COMMERCIAL BANKING INSTITUTIONS A34 Total nonfarm business expenditures on new A18 Major nondeposit funds plant and equipment A19 Assets and liabilities, last-Wednesday-of-month A3 5 Domestic finance companies—Assets and series liabilities and business credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin • January 1993 Domestic Financial Statistics—Continued A54 U.S. reserve assets A54 Foreign official assets held at Federal Reserve Banks REAL ESTATE A55 Foreign branches of U.S. banks—Balance A36 Mortgage markets sheet data A37 Mortgage debt outstanding A57 Selected U.S. liabilities to foreign official institutions CONSUMER INSTALLMENT CREDIT REPORTED BY BANKS A3 8 Total outstanding and net change IN THE UNITED STATES A3 8 Terms A57 Liabilities to and claims on foreigners A58 Liabilities to foreigners FLOW OF FUNDS A60 Banks' own claims on foreigners A61 Banks' own and domestic customers' claims on A39 Funds raised in U.S. credit markets foreigners A41 Summary of financial transactions A61 Banks' own claims on unaffiliated foreigners A42 Summary of credit market debt outstanding A62 Claims on foreign countries—Combined A43 Summary of financial assets and liabilities domestic offices and foreign branches Domestic Nonfinancial Statistics REPORTED BY NONBANKING BUSINESS ENTERPRISES IN THE UNITED STATES SELECTED MEASURES A63 Liabilities to unaffiliated foreigners A44 Nonfinancial business activity—Selected A64 Claims on unaffiliated foreigners measures A45 Labor force, employment, and unemployment A46 Output, capacity, and capacity utilization SECURITIES HOLDINGS AND TRANSACTIONS A47 Industrial production—Indexes and gross value A65 Foreign transactions in securities A49 Housing and construction A66 Marketable U.S. Treasury bonds and A50 Consumer and producer prices notes—Foreign transactions A51 Gross domestic product and income A52 Personal income and saving INTEREST AND EXCHANGE RATES International Statistics A67 Discount rates of foreign central banks A67 Foreign short-term interest rates SUMMARY STATISTICS A68 Foreign exchange rates A53 U.S. international transactions—Summary A69 Guide to Statistical Releases and A54 U.S. foreign trade Special Tables Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS c Corrected 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 DomesticN onfinancial Statistics • January 1993 1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 1991 1992 1992 MMoonneettaarryy aanndd ccrreeddiitt aaggggrreeggaattee Q4 Q1 Q2 Q3 June Julyr Aug. Sept. Oct. Reserves of depository institutions2 1 Total 15.2 23.4 14.9 9.3 -6.3 6.2 20.2 24.4 42.0 2 Required 15.4 23.5 15.4 9.9 -4.3 5.0 21.3 23.4r 40.9 3 Nonborrowed 20.0 24.0 14.8 8.4 -8.1 4.9 21.1 23.7 45.6 4 Monetary base3 8.2 9.2 7.1 10.5 3.9 9.5 16.6 16.7 14.3 Concepts of money, liquid assets, and debt4 5 Ml 11.1 16.5 9.8r 10.3r -3.3r 11.1 15.7r 19. lr 22.6 6 M2 2.4 4.2 ,4r .3r -3.CF -.8 3.3r 3.6 5.0 7 M3 1.0 2.2 -1.2r -.2r -3.4 -1.1 3.5r 1.8r .5 8 L .2 1.5 .5 1.2 2.7 -1.9 4.3r 4.6 n.a. 9 Debt 3.9 4.2 5.2 4.6 5.3 4.6 4.5 3.6 n.a. Nontransaction components 10 In M2 -.6 -.1 --33..00"" -3.5r --22..9911 -5.2 — 1.5r —2.5r -1.9 11 In M3 only6 -5.4 -7.4r -9.3r -2.3 —5.3r -3.1 4.8r -7.0r -21.8 Time and savings deposits Commercial banks 12 Savings, including MMDAs 16.0 19.1 12.0 10.ff 4.7r 9.5 13.4r 16.7r 14.4 13 Small time -8.4 -18.9 -13.3 -16.4 -14.2 -16.8 -18.8r -16.6r -18.4 14 Large time • -14.4 -18.2 -14.8 -16.0" -14.9 -23.6 -10.2 -16.7 -25.4 Thrift institutions 15 Savings, including MMDAs 10.2 22.4 18.8 8.4r 5.2 5.5 9.2r 10.8 8.8 16 Small time' -22.5 -24.3 -29.4 -18.7r -17.8 -18.1 —19.3r —17.8r -27.3 17 Large time • -36.5 -29.7 -36.7 -17.1 -25.2 -5.2 -22.4 -3.5 -3.5 Money market mutual funds 18 General purpose and broker-dealer -4.0 -.3 --33..99** —7.2' --44..00rr -10.5 -5.8 -17.1r 10.8 19 Institution-only 37.2 26.9 20.0 40.0 30.2 48.1 54.9 .0 -65.2 Debt components4 20 Federal 11.5 10.0 14.2 11.0 14.8 10.7 9.5 5.0 n.a. 21 Nonfederal 1.5 2.4 2.3 2.5 2.1 2.5 2.7 3.1 n.a. 1. Unless otherwise noted, rates of change are calculated from average offices in the United Kingdom and Canada, and (3) balances in both taxable and amounts outstanding during preceding month or quarter. tax-exempt, institution-only money market funds. Excludes amounts held by 2. Figures incorporate adjustments for discontinuities, 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 noniinancial 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 noniinancial 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 (S) 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 Average of Average of daily figures for week ending on date indicated daily figures 1992 1992 Aug. Sept. Oct. Sept. 16 Sept. 23 Sept. 30 Oct. 7 Oct. 14 Oct. 21 Oct. 28 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 315,617 325,915r 321,291 323,716 324,993 335,306r 319,552 323,092 321,295 320,855 U.S. government securities 2 Bought outright—System account 276,117 280,746 282,073 280,496 280,594 281,532 281,132 282,037 282,160 281,906 3 Held under repurchase agreements ... 1,699 6,452 858 4,167 5,901 13,947 370 1,924 361 1,147 Federal agency obligations 4 Bought outright 5,603 5,538 5,534 5,534 5,534 5,534 5,534 5,534 5,534 5,534 5 Held under repurchase agreements ... 26 293 69 168 195 855 46 153 29 78 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 28 94 29 244 24 102 19 58 9 37 8 Seasonal credit 224 192 115 182 194 197 165 127 103 86 9 Extended credit 0 0 0 0 0 0 0 0 0 0 10 Float 655 541 572 1,095 477 153 320 994 948 2 11 Other Federal Reserve assets 31,264 32,059r 32,041 31,830 32,074 32,986r 31,966 32,265 32,152 32,066 12 Gold stock 11,060 11,059 11,059 11,060 11,059 11,058 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 21,292 21,324 21,380 21,320 21,331 21,342 21,356 21,370 21,384 21,398 ABSORBING RESERVE FUNDS 15 Currency in circulation 315,783 318,628 320,241 319,953 318,149 317,314 318,796 321,085 321,007 319,968 16 Treasury cash holdings 553 530 518 531 529 522 526 525 516 509 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 5,729 11,390 4,946 6,284 13,697 21,297 5,499 4,555 4,675 5,191 18 Foreign 211 309 330 257 297 438 298 293 271 402 19 Service-related balances and adjustments 5,612 5,773 5,782 5,708 5,756 5,963 5,740 5,703 5,742 5,832 20 Other 267 290 286 293 289 275 324 276 269 265 21 Other Federal Reserve liabilities and capital 8,496 8,507r 8,108 8,274 8,235 8,275r 8,099 8,180 8,132 8,242 22 Reserve balances with Federal Reserve Banks 21,336 22,890 23,539 24,814 20,450 23,641 22,701 24,922 23,145 22,921 End-of-month figures Wednesday figures Aug. Sept. Oct. Sept. 16 Sept. 23 Sept. 30 Oct. 7 Oct. 14 Oct. 21 Oct. 28 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 319,410 336,583r 320,048 325,472 333,889 336,583r 319,293 332,569 319,138 318,942 U.S. government securities Bought outright—System account . 274,537 279,712 282,877 283,122 280,683 279,712 281,573 281,313 281,314 282,004 Held under repurchase agreements 7,616 16,685 0 2,682 14,303 16,685 0 9,831 0 521 Federal agency obligations Bought outright 5,571 5,534 5,534 5,534 5,534 5,534 5,534 5,534 5,534 5,534 Held under repurchase agreements 53 1,475 0 307 224 1,475 0 1,044 0 130 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions Adjustment credit 28 425 11 1,398 44 425 11 190 20 28 Seasonal credit 216 184 70 191 200 184 143 119 96 75 Extended credit 0 0 0 0 0 0 0 0 0 0 10 Float 195 -227r 494 154 136 -227r 61 1,485 335 -1,505 11 Other Federal Reserve assets 31,195 32,796r 31,063 32,083 32,765 32,796r 31,970 33,054 31,838 32,155 12 Gold stock 11,059 11,058 11,060 11,060 11,059 11,058 11,060 11,059 11,059 11,059 13 Special drawing rights certificate account 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 14 Treasury currency outstanding 21,298 21,342 21,412 21,320 21,331 21,342 21,356 21,370 21,384 21,398 ABSORBING RESERVE FUNDS 15 Currency in circulation 316,136 317,923 320,398 319,266 317,713 317,923 319,912 321,611 320,503 320,237 16 Treasury cash holdings 539 527 505 530 522 527 526 517 510 505 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 6,232 24,586 4,413 7,881 21,7% 24,586 5,197 4,342 5,692 5,028 18 Foreign 297 546 415 501 310 546 320 279 393 585 19 Service-related balances and adjustments 5,768 5,963 6,042 5,708 5,756 5,963 5,740 5,703 5,742 5,832 20 Other 254 296r 317 328 256 296r 335 300 254 298 21 Other Federal Reserve liabilities and capital 9,275 8,024r 7,271 8,104 8,107 8,024r 8,036 8,097 7,916 8,081 22 Reserve balances with Federal Reserve Banks 23,284 21,138 23,176 25,550 21,836 21,138 21,661 34,168 20,590 20,851 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 • January 1993 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. Apr. May June July Aug. Sept. Oct. 1 Reserve balances with Reserve Banks2 35,436 30,237 26,659 22,655 21,071 21,223 21,206 21,272 22,627r 23,625 2 Total vault cash 29,828 31,786 32,513 31,071 31,197 31,729 32,145 32,457 32,343 32,992 3 Applied vault cash 27,374 28,884 28,872 27,800 27,754 28,273 28,617 28,890 28,894 29,510 4 Surplus vault cash5 2,454 2,903 3,641 3,271 3,442 3,456 3,528 3,567 3,448 3,482 5 Total reserves 62,810 59,120 55,532 50,455 48,825 49,496 49,823 50,162 51,521r 53,135 6 Required reserves . 61,887 57,456 54,553 49,318 47,825 48,584 48,857 49,227 50,527r 52,062 7 Excess reserve balances at Reserve Banks ... 923 1,664 979 1,137 1,000 913 965 935 994r 1,073 8 Total borrowings at Reserve Banks 265 326 192 90 155 229 284 251 287 143 9 Seasonal borrowings 84 76 38 47 98 149 203 223 193 114 10 Extended credit9 20 23 1 2 0 0 0 0 0 0 Biweekly averages of daily figures for weeks ending 1992 July 8 July 22 Aug. 5 Aug. 19 Sept. 2 Sept. 16 Sept. 30 Oct. 14 Oct. 28 Nov. 11 1 Reserve balances with Reserve Banks 21,014 21,277 21,264 21,515 20,991 23,439 22,048r 23,810 23,031 25,532 2 Total vault cash3 32,589 32,233 31,613 32,687 32,541 31,625 33,033 32,929 33,334 31,689 3 Applied vault cash 28,910 28,779 28,105 29,166 28,8% 28,438 29,351 29,438 29,790 28,540 4 Surplus vault cash 3,679 3,455 3,508 3,521 3,645 3,187 3,682 3,491 3,544 3,150 5 Total reserves6 49,924 50,056 49,369 50,681 49,887 51,876 s i^ 53,248 52,821 54,072 6 Required reserves 48,884 49,106 48,447 49,856 48,820 51,081 50,217r 52,099 51,750 53,345 7 Excess reserve balances at Reserve Banks ... 1,041 950 922 825 1,067 795 l,182r 1,149 1,071 727 8 Total borrowings at Reserve Banks8 455 215 241 249 258 321 259 185 118 66 9 Seasonal borrowings 187 199 222 221 226 187 196 146 95 53 10 Extended credit9 1 0 0 0 0 0 0 0 0 0 1. Data in this table also appear in the Board's H.3 (502) weekly statistical 5. Total vault cash Qine 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 Aug. 3 Aug. 10 Aug. 17 Aug. 24 Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 Federal funds purchased, repurchase agreements, and other selected borrowings From commercial banks in the United States 1 For one day or under continuing contract 72,386 75,784 72,520r 69,943 69,674 77,011 74,385 69,893 64,560 2 For all other maturities 15,378r 15,969*^ 15,864r 15,853r 15,512' 14,365 14,605 13,869 13,988 From other depository institutions, foreign banks and official institutions, and U.S. government agencies 3 For one day or under continuing contract 19,314 17,607 17,988 18,137 17,874 19,902 17,075 16,166 18,880 4 For all other maturities 19,092 19,173 20,827 19,917 19,493 20,735 21,184 20,791 21,305 Repurchase agreements on U.S. government and federal agency securities Brokers and nonbank dealers in securities 5 For one day or under continuing contract 12,644 13,697 13,289 15,753 15,305 14,459 14,299 12,197 11,514 6 For all other maturities 13,071r 15,18tf" 15,866r 16.97T 15,956 17,202 16,960 17,490 All other customers 7 For one day or under continuing contract 24,609 24,862 24,794 25,358 25,113 25,117 23,355 23,519 23,466 8 For all other maturities ll,603r ll,588r 11,83c 12,198r 12,483r 12,542 12,198 13,008 13,304 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 44,55<r 41,718 41,371r 39,158r 41,511' 42,828 41,225 44,357 39,913 10 To all other specified customers 16,393 20,327 19,248 18,911 17,663 19,705 20,430 23,037 21,064 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.S (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 • January 1993 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Adjustment credit1 Seasonal credit2 Extended credit3 FFeeddeerraall RReesseerrvvee BBaannkk 11/ O 30 n / 92 Effective date Previous rate 11/ O 30 n / 92 Effective date Previous rate 11/ O 30 n / 92 Effective date Previous rate Boston 3 7/2/92 3.5 3.35 11/27/92 3.20 3.85 11/27/92 3.70 New York 7/2/92 11/27/92 11/27/92 Philadelphia 7/2/92 11/27/92 11/27/92 Cleveland 7/6/92 11/27/92 11/27/92 Richmond 7/2/92 11/27/92 11/27/92 Atlanta 7/2/92 11/27/92 11/27/92 Chicago 7/2/92 11/27/92 11/27/92 St. Louis 7/7/92 11/27/92 11/27/92 Minneapolis 7/2/92 11/27/92 11/27/92 Kansas City 7/2/92 11/27/92 11/27/92 Dallas 7/2/92 11/27/92 11/27/92 San Francisco ... 3 7/2/92 3.5 3.35 11/27/92 3.20 3.85 11/27/92 3.70 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. B o an f k Effective date A le l v l e F l) . — R. B o an f k Effective date A le l v l e F l) . — R. B o an 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 U 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 7 7 20 8.5 8.5 27 10-10.5 10 27 Nov. 1 8.5-9.5 9.5 30 10 10 6.5 6.5 3 9.5 9.5 Oct. 12 9.5-10 9.5 1990—Dec. 19 13 9.5 9.5 6.65 6 1979—July 20 10 10 Nov. 22 9-9.5 9 1991—Feb. 1 6 6 Aug. 17 10-10.5 10.5 26 9 9 4 5.5-6 5.5 20 10.5 10.5 Dec. 14 8.5-9 9 Apr. 30 5.5 5.5 Sept. 19 10.5-11 11 15 8.5-9 8.5 May 2 5-5.5 5 21 11 11 17 8.5 8.5 Sept. 13 5 5 Oct. 8 11-12 12 Sept. 17 4.5-5 4.5 10 12 12 1984—Apr. 9 8.5-9 9 Nov. 6 4.5 4.5 13 9 9 7 3.5-4.5 3.5 1980—Feb. 15 12-13 13 Nov. 21 8.5-9 8.5 Dec. 20 3.5 3.5 19 13 13 26 8.5 8.5 24 May 29 12-13 13 Dec. 24 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 In effect Nov. 30, 1992 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 Type of deposit Net transaction accounts 1 $0 million-$46.8 million... 12/15/92 2 More than $46.8 million .. 4/2/92 3 Nonpersonal time deposits: 12/27/90 4 Eurocurrency liabilities6 .. 12/27/90 1. Required reserves must be held in the form of deposits with Federal Reserve permit no more than six preauthorized, automatic, or other transfers per month, Banks or vault cash. Nonmember institutions may maintain reserve balances with of which no more than three may be checks, are not transaction accounts (such a Federal Reserve Bank indirectly on a pass-through basis with certain approved accounts are savings deposits). institutions. For previous reserve requirements, see earlier editions of the Annual The Monetary Control Act of 1980 requires that the amount of transaction Report or the Federal Reserve Bulletin. Under provisions of the Monetary accounts against which the 3 percent reserve requirement applies be modified Control Act, depository institutions include commercial banks, mutual savings annually by 80 percent of the percentage change in transaction accounts held by banks, savings and loan associations, credit unions, agencies and branches of all depository institutions, determined as of June 30 each year. Effective Dec. 15, foreign banks, and Edge corporations. 1992, for institutions reporting quarterly, and Dec. 24, 1992, for institutions 2. The Garn-St Germain Depository Institutions Act of 1982 (Public Law reporting weekly, the amount was increased from $42.2 million to $46.8 million. 97-320) requires that $2 million of reservable liabilities of each depository 4. The reserve requirement was reduced from 12 percent to 10 percent on Apr. institution be subject to a zero percent reserve requirement. The Board is to adjust 2, 1992, for institutions that report weekly, and on Apr. 16, 1992, for institutions the amount of reservable liabilities subject to this zero percent reserve require- that report quarterly. ment each year for the succeeding calendar year by 80 percent of the percentage 5. For institutions that report weekly, the reserve requirement on nonpersonal increase in the total reservable liabilities of all depository institutions, measured time deposits with an original maturity of less than 1 Vi years was reduced from 3 on an annual basis as of June 30. No corresponding adjustment is to be made in percent to iVi percent for the maintenance period that began Dec. 13, 1990, and the event of a decrease. On Dec. 15, 1992, the exemption was raised from $3.6 to zero for the maintenance period that began Dec. 27, 1990. The reserve million to $3.8 million. The exemption applies in the following order: (1) net requirement on nonpersonal time deposits with an original maturity of 1V4 years negotiable order of withdrawal (NOW) accounts (NOW accounts less allowable or more has been zero since Oct. 6, 1983. deductions); and (2) net other transaction accounts. The exemption applies only to For institutions that report quarterly, the reserve requirement on nonpersonal accounts that would be subject to a 3 percent reserve requirement. time deposits with an original maturity of less than 1 Vi years was reduced from 3 3. Include all deposits against which the account holder is permitted to make percent to zero on Jan. 17, 1991. withdrawals by negotiable or transferable instruments, payment orders of with- 6. The reserve requirement on Eurocurrency liabilities was reduced from 3 drawal, and telephone and preauthorized transfers in excess of three per month percent to zero in the same manner and on the same dates as were the reserve for the purpose of making payments to third persons or others. However, money requirement on nonpersonal time deposits with an original maturity of less than market deposit accounts (MMDAs) and similar accounts subject to the rules that IVl years (see note 4). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 DomesticN onfinancial Statistics • January 1993 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars 1992 TTyyppee ooff ttrraannssaaccttiioonn 11998899 11999900 11999911 Mar. Apr. May June My Aug. Sept. U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 14,284 24,739 20,158 505 0 4,110 306 0 271 595 2 Gross sales 12,818 7,291 120 0 0 0 0 0 0 0 3 Exchanges 231,211 241,086 277,314 21,674 27,526 24,275 22,392 27,755 25,041 22,268 4 Redemptions 12,730 4,400 1,000 0 0 0 0 0 0 0 Others within one year 5 Gross purchases 327 425 3,043 0 0 0 0 0 0 550 b Gross sales 0 0 0 0 0 0 0 0 0 0 7 Maturity shifts 28,848 25,638 24,454 2,552 1,100 3,754 2,152 687 5,415 0 8 Exchanges -25,783 -27,424 -28,090 -2,512 -1,863 -5,225 -1,854 -1,669 -4,617 0 9 Redemptions 500 0 1,000 0 0 0 0 0 0 0 One to five years 10 Gross purchases 1,436 250 6,583 1,425 0 200 2,278 0 400 3,325 11 Gross sales 490 200 0 0 0 0 0 0 0 0 12 Maturity shifts -25,534 -21,770 -21,211 -2,552 -877 -2,113 -3,447 -216 -4,036 0 13 Exchanges 23,250 25,410 24,594 2,512 1,484 4,311 1,854 1,478 3,567 0 Five to ten years 14 Gross purchases 287 0 1,280 0 0 0 597 0 0 725 15 Gross sales 29 100 0 0 0 0 0 0 0 0 16 Maturity shifts -2,231 -2,186 -2,037 0 -223 -346 0 -471 -412 0 17 Exchanges 1,934 789 2,894 0 379 614 0 191 700 0 More than ten years 18 Gross purchases 284 0 375 0 0 0 655 0 195 731 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 0 300 0 0 350 0 All maturities 22 Gross purchases 16,617 25,414 31,439 1,930 0 4,310 3,836 0 866 5,927 23 Gross sales 13,337 7,591 120 0 0 0 0 0 0 0 24 Redemptions 13,230 4,400 1,000 0 0 0 0 0 0 0 Matched transactions 25 Gross sales 1,323,480 1,369,052 1,570,456 128,230 125,999 118,972 126,977 127,051 104,873 116,331 26 Gross purchases 1,326,542 1,363,434 1,571,534 126,673 128,149 117,524 129,216 126,137 102,575 115,579 Repurchase agreements2 2277 Gross purchases 129,518 219,632 310,084 48,758 18,432 38,777 10,792 12,224 39,484 68,697 28 Gross sales 132,688 202,551 311,752 46,953 20,237 38,533 11,036 12,224 31,868 59,628 29 Net change in U.S. government securities -10,055 24,886 29,729 2,178 345 3,107 5,831 -914 6,184 14,244 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 0 49 160 40 85 54 37 Repurchase agreements1 33 Gross purchases 38,835 41,836 22,807 1,640 224 1,281 402 94 601 3,222 34 Gross sales 40,411 40,461 23,595 1,640 224 1,281 402 94 548 1,800 35 Net change in federal agency obligations -2,018 1,192 -1,085 0 -49 -160 -40 -85 -1 1,385 36 Total net change in System Open Market Account -12,073 26,078 28,644 2,178 295 2,946 5,791 -1,000 6,183 15,629 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 Sept. 30 Oct. 7 Oct. 14 Oct. 21 Oct. 28 Aug. 31 Sept. 30 Oct. 31 Consolidated condition statement ASSETS 1 Gold certificate account 11,058 11,060 11,059 11,059 11,059 11,059 11,058 11,060 2 Special drawing rights certificate account 10,018 10,018 10,018 10,018 10,018 10,018 10,018 10,018 3 Coin 501r 510 515 516 517 499 501 519 Loans 4 To depository institutions 609 154 309 116 103 244 609 80 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 5,534 5,534 5,534 5,534 5,534 5,571 5,534 5,534 8 Held under repurchase agreements 1,475 0 1,044 0 130 53 1,475 0 9 Total U.S. Treasury securities 296,397 281,573 291,144 281,314 282,525 282,153 296,397 282,877 10 Bought outright2 279,712 281,573 281,313 281,314 282,004 274,537 279,712 282,877 11 Bills 133,752 135,613 135,352 135,354 135,843 133,908 133,752 136,716 12 Notes 112,376 112,376 112,376 112,376 112,576 107,822 112,376 112,576 13 Bonds 33,584 33,584 33,584 33,584 33,584 32,807 33,584 33,584 14 Held under repurchase agreements 16,685 0 9,831 0 521 7,616 16,685 0 15 Total loans and securities 304,015 287,262 298,030 286,965 288,292 288,020 304,015 288,491 16 Items in process of collection 5,125r 5,670 9,791 5,502 4,791 2,267 5,125 5,136 17 Bank premises 1,019 1,019 1,023 1,024 1,025 1,015 1,019 1,024 Other assets 18 Denominated in foreign currencies 24,432r 24,476 24,493 24,053 24,065 24,742 24,432 23,067 19 All other4 7,423r 6,451 7,580 6,701 6,949 5,472 7,423 7,020 20 Total assets 363,591r 346,466 362,511 345,838 346,715 343,093 363,591 346,334 LIABILITIES 21 Federal Reserve notes 297,609r 299,591 301,274 300,144 299,861 295,876 297,609 300,010 22 Total deposits 53,094 33,391 44,951 32,794 34,084 36,206 53,094 34,484 23 Depository institutions 27,665r 27,538 40,030 26,455 28,161 29,422 27,665 29,339 24 U.S. Treasury—General account 24,586 5,197 4,342 5,692 5,028 6,232 24,586 4,413 25 Foreign—Official accounts 546 320 279 393 585 297 546 415 26 Other 296r 335 300 254 298 254 296 317 27 Deferred credit items 4,865r 5,448 8,189 4,984 4,689 1,736 4,865 4,568 28 Other liabilities and accrued dividends 1,840" 1,746 1,769 1,651 1,752 1,960 1,840 1,805 29 Total liabilities 357,408' 340,176 356,183 339,573 340,386 335,778 357,408 340,868 CAPITAL ACCOUNTS 30 Capital paid in 2,977 2,985 2,990 3,000 3,006 2,957 2,977 3,040 31 Surplus 2,652 2,652 2,652 2,652 2,652 2,652 2,652 2,419 32 Other capital accounts 555r 653 686 614 671 1,707 555 8 33 Total liabilities and capital accounts 363,591r 346,466 362,511 345,838 346,715 343,093 363,591 346,334 34 MEMO: Marketable U.S. Treasury securities held in custody for foreign and international accounts 283,556 284,205 287,507 287,386 284,546 296,756 283,556 293,014 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to Bank) 357,496 357,073 357,281 357,554 357,787 357,972 357,4% 357,540 36 LESS: Held by Federal Reserve Bank 59,887r 57,482 56,008 57,409 57,926 62,0% 59,887 57,530 37 Federal Reserve notes, net 297,609" 299,591 301,274 300,144 299,861 295,876 297,609 300,010 Collateral held against notes, net: 38 Gold certificate account 11,058 11,060 11,059 11,059 11,059 11,059 11,058 11,060 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 276,532r 278,514 280,1% 279,067 278,784 274,799 276,532 278,933 42 Total collateral 297,609r 299,591 301,274 300,144 299,861 295,876 297,609 300,010 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 DomesticN onfinancial Statistics • January 1993 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 Sept. 30 Oct. 7 Oct. 14 Oct. 21 Oct. 28 Aug. 31 Sept. 30 Oct. 30 1 Total loans 609 154 309 116 103 244 609 80 2 Within fifteen days 506 60 241 106 87 110 506 35 3 Sixteen days to ninety days 103 94 68 10 16 134 103 46 4 Ninety-one days to one year 0 0 0 0 0 0 0 0 5 Total acceptances 0 0 0 0 0 0 0 0 6 Within fifteen days 0 0 0 0 0 0 0 0 7 Sixteen days to ninety days 0 0 0 0 0 0 0 0 8 Ninety-one days to one year 0 0 0 0 0 0 0 0 9 Total U.S. Treasury securities 296,397 281,573 291,144 281,314 282,525 282,153 296,397 287,862 10 Within fifteen days2 24,468 12,780 22,344 13,851 11,667 13,027 24,468 10,753 11 Sixteen days to ninety days 67,062 65,597 65,554 67,275 67,250 70,616 67,062 69,984 12 Ninety-one days to one year 91,423 89,753 89,803 87,116 90,336 90,167 91,423 93,864 13 One year to five years 69,648 69,648 69,648 69,427 69,627 66,029 69,648 68,970 14 Five years to ten years 17,165 17,165 17,165 17,014 17,014 16,415 17,165 17,014 15 More than ten years 26,631 26,631 26,631 26,631 26,631 25,899 26,631 26,631 16 Total federal agency obligations 7,009 5,534 6,578 5,534 5,664 5,624 7,009 5,534 17 Within fifteen days2 1,685 5 1,127 197 244 463 1,685 114 18 Sixteen days to ninety days 747 937 854 740 843 573 747 843 19 Ninety-one days to one year 1,221 1,236 1,236 1,266 1,198 1,286 1,221 1,198 20 One year to five years 2,465 2,465 2,470 2,455 2,503 2,391 2,465 2,503 21 Five years to ten years 737 737 737 722 722 757 737 722 22 More than ten years 154 154 154 154 154 154 154 154 1. Holdings under repurchase agreements are classified as maturing within fifteen 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 IItteemm DD 1199 ee 88 cc 88 .. DD 1199 ee 88 cc 99 .. DD 1199 ee 99 cc 00 .. DD 1199 ee 99 cc 11 .. Mar. Apr. May June July Aug. Sept. Oct. Seasonally adjusted AADDJJUUSSTTEEDD FFOORR CCHHAANNGGEESS IINN RREESSEERRVVEE RREEQQUUIIRREEMMEENNTTSS22 11 TToottaall rreesseerrvveess33 40.47 40.56 41.83 45.60 48.48 49.00 49.49 49.23 49.49 50.32 51.35 53.14 22 NNoonnbboorrrroowweedd rreesseerrvveess 38.75 40.29 41.51 45.41 48.39 48.91 49.34 49.01 49.21 50.07 51.06 53.00 33 NNoonnbboorrrroowweedd rreesseerrvveess pplluuss eexxtteennddeedd ccrreeddiitt 40.00 40.31 41.53 45.41 48.39 48.91 49.34 49.01 49.21 50.07 51.06 53.00 44 RReeqquuiirreedd rreesseerrvveess 39.42 39.64 40.17 44.62 47.45 47.86 48.49 48.32 48.52 49.39 50.35r 52.07 55 MMoonneettaarryy bbaassee 256.97 267.77 293.29 317.25 324.51 326.50 328.58 329.64 332.26 336.87 341.55 345.63 Not seasonally adjusted 6 Total reserves 41.65 41.77 43.07 46.98 47.69 50.02 48.62 49.25 49.52 49.81 51.11 52.66 7 Nonborrowed reserves .. 39.93 41.51 42.74 46.78 47.59 49.93 48.47 49.02 49.24 49.56 50.83 52.52 8 Nonborrowed reserves plus extended credit . 41.17 41.53 42.77 46.78 47.60 49.93 48.47 49.02 49.24 49.56 50.83 52.52 9 Required reserves 40.60 40.85 41.40 46.00 46.66 48.88 47.62 48.33 48.56 48.88 50.12r 51.59 10 Monetary base 260.41 271.18 296.68 321.07 322.69 327.45 328.37 330.94 334.09 336.59 340.11 343.67 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS1 11 Total reserves11 63.75 62.81 59.12 55.53 56.28 50.46 48.83 49.50 49.82 50.16 51.52 53.14 12 Nonborrowed reserves 62.03 62.54 58.80 55.34 56.19 50.37 48.67 49.27 49.54 49.91 51.23r 52.99 13 Nonborrowed reserves plus extended credit . 63.28 62.56 58.82 55.34 56.19 50.37 48.67 49.27 49.54 49.91 51.23r 52.99 14 Required reserves 62.70 61.89 57.46 54.55 55.25 49.32 47.83 48.58 48.86 49.23 50.53r 52.06 15 Monetary base . 283.00 292.55 313.70 333.61 335.82 332.69 333.79 336.43 339.87 342.49 346.21 349.83 16 Excess reserves 1.05 .92 1.66 1.03 1.14 1.00 .91 .97 .94 .99"^ 1.07 17 Borrowings from the Federal Reserve 1.72 .27 .33 .19 .09 .09 .16 .23 .28 .25 .29 .14 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 • January 1993 1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1 Billions of dollars, averages of daily figures 1992 IItteemm 1988 1989 1990 1991 Dec. Dec. Dec. Dec. Julyr Aug.r Sept/ Oct. Seasonally adjusted Measures2 1 Ml 786.9 794.1 826.1 898.1 960.5 973.1 988.6 1.007.2 2 M2 3,071.1 3,227.3 3,339.0 3,439.8r 3,462.2 3,471.6 3,481.9 3,496.5 3 M3 3,923.1 4,059.8 4,114.6 4.171.0 4.163.0 4,175.2 4,181.4 4.183.3 4 L 4,677.1 4,890.6 4,965.2 4.988.1 5.006.1 5,023.9 5,043.3 n.a. 5 Debt 9,326.3 10,076.7 10,751.3 11,200.4 11,526.0 11,569.0 11,604.0 n.a. Ml components 6 Currency3 212.3 222.6 246.8 267.3 278.9 282.3 286.4 288.4 7 Travelers checks* 7.5 7.4 8.3 8.2 7.8 7.9 8.3 8.6 9 8 O D t e h m e a r n c d h e d c e k p a o b s l i e t s d eposits6 2 28 8 0 6 . . 6 5 2 28 7 5 9 . . 1 0 2 2 7 9 7 3 . . 1 9 2 33 8 3 9 . . 2 5 3 35 1 8 5 . . 2 6 3 36 2 2 0 . . 2 6 3 36 2 6 7 . . 1 8 3 3 7 3 3 6 . . 9 3 Nontransaction components 1 1 0 1 I I n n M M3 2 8 2,2 8 8 5 4 2 . . 2 0 2,4 8 3 3 3 2 . . 2 5 2,5 7 1 7 2 5 . . 9 6 2,5 7 4 3 1 1 . . 7 2 r r 2,5 7 0 0 1 0 . . 7 8 2,4 7 9 0 8 3 . . 5 6 2,4 6 9 9 3 9 . . 2 5 2,4 6 8 8 9 6 . . 3 8 Commercial banks 12 Savings deposits, including MMDAs 542.7 541.5 581.9 664.9 716.3 724.3 734.4 743.2 1 1 3 4 S L m ar a g l e l t t i i m m e e d d e e p p o o s s it i s t ® s1 . • 4 3 4 6 7 6 . . 0 9 5 39 3 8 1 . . 2 0 6 3 0 7 6 4 . . 4 0 5 35 9 4 8 . . 0 5 5 31 4 9 3 . . 1 8 5 3 3 1 5 6. . 4 3 5 31 2 2 7 . . 0 9 5 30 1 5 9 . . 4 8 Thrift institutions 15 Savings deposits, including MMDAs 383.5 349.7 338.8 377.7 418.1 421.3 425.1 428.2 1 1 6 7 L Sm ar a g l e l t t i i m m e e d d e e p p o o s s it i s t ® s10 . 5 1 8 7 5 4 . . 9 3 6 1 1 6 7 1 . . 5 1 5 1 6 2 2 0 . . 3 9 46 8 4 3. . 1 5 3 6 9 9 8 . . 5 5 3 6 9 8 2 . . 2 1 3 6 8 8 6 . . 0 3 3 6 7 7 7 . . 8 5 Money market mutual funds 18 General purpose and broker-dealer . 241.9 316.3 348.9 360.5 352.4 350.7 345.7 348.8 19 Institution-only 91.0 107.2 133.7 179.1 207.7 217.2 217.2 205.4 Debt components 20 Federal debt 2,101.5 2,249.5 2,493.4 2,764.8 2,968.2 2,991.6 3,004.1 n.a. 21 Nonfederal debt 7,224.8 7,827.2 8,258.0 8,435.6 8,557.8 8,577.4 8,599.8 n.a. Not seasonally adjusted Measures2 22 Ml 804.1 811.9 844.1 917.3 963.0 970.6 983.0 1,001.2 23 M2 3,083.8 3,240.0 3,351.9 3,453.6r 3,465.3 3,470.6 3,473.3 3.491.7 24 M3 3,934.7 4,070.3 4,124.7 4,181.7 4,164.0 4,177.9 4,172.5 4.173.8 25 L 4,694.2 4,909.9 4,984.9 5,008.3 4,997.8 5,017.5 5,033.0 n.a. 26 Debt 9,312.5 10,063.6 10,739.9 11,190.5 11,480.6 11,531.1 11,576.9 n.a. Ml components 27 Currency3 . 214.8 225.3 249.5 270.0 280.8 282.9 284.7 287.0 2 2 3 8 9 0 D O Tr e t a h m v e e a r n le c d r h s e d c c e k h p a e o b c s l k i e t s s d 5 eposits6 2 28 9 6 3 8 . . . 9 5 9 2 2 9 8 6 1 8 . . . 5 1 9 2 2 8 9 7 9 6 . . . 9 9 8 3 3 0 3 7 3 6 . . . 7 0 5 3 35 1 8 6 7 . . . 6 4 2 3 3 1 5 8 9 9 . . . 8 2 7 3 3 6 2 8 4 5 . . . 1 4 9 3 3 6 3 8 9 6 . . . 7 4 1 Nontransaction components 3 3 1 2 I I n n M M3 2 8 2,2 8 7 5 9 0 . . 7 8 2,4 8 2 3 8 0 . . 1 3 2,5 7 0 7 7 2 . . 8 8 2,5 7 3 2 6 8. .3 0 r 2,5 6 0 9 2 8 . . 4 7 2,5 7 0 0 0 7. . 3 0 2,4 6 9 9 0 9. . 2 3 2,4 6 9 8 0 2. . 1 6 Commercial banks 3 3 3 3 4 5 L S S a m a v r a g i l n e l g t t s i i m m d e e e p d d o e e s p p it o o s s s , i i t i t i s s r 9 1 c . 0 l , u 1 d 1 i ng MMDAs 5 4 3 4 4 6 6 3 5 . . . 0 8 9 5 5 3 4 2 9 3 9 7 . . . 0 5 1 6 5 3 0 8 7 6 0 3 . . . 0 0 3 6 5 3 9 6 5 8 2 2 . . . 7 4 8 7 5 3 4 1 1 3 8 9 . . . 6 9 8 7 5 3 2 3 1 6 4 8 . . . 2 9 0 7 5 3 3 2 1 3 7 3 . . . 4 2 5 7 5 3 4 0 2 1 5 0 . . . 9 4 8 Thrift institutions 36 Savings deposits, including MMDAs 381.1 347.6 337.7 376.3 420.1 422.4 424.5 427.4 3 3 7 8 L Sm ar a g l e l t t i i m m e e d d e e p p o o s s it i s t ® s10 . 5 1 8 7 4 5 . . 9 2 6 1 1 6 6 2 . . 0 0 5 1 6 2 2 0 . . 2 6 4 8 6 2 4 . . 8 6 3 6 9 9 8 . . 4 4 3 6 9 8 1. . 8 6 3 6 86 8 . . 1 3 3 6 7 7 8. . 2 8 Money market mutual funds 39 General purpose and broker-dealer 240.8 314.6 346.8 358.1 348.0 349.0 344.6 347.2 40 Institution-only 91.4 107.8 134.4 180.3 202.2 213.8 210.0 199.5 Repurchase agreements and eurodollars 41 Overnight 83.2 77.5 74.7 76.2r 72.4 75.8 74.2 75.0 42 Term 227.4 178.5 158.3 127.7 122.9 122.6 122.0 123.9 Debt components 43 Federal debt 2,098.9 2,247.5 2,491.3 2,765.0 2,937.5 2,970.3 2,993.9 n.a. 44 Nonfederal debt 7,213.5 7,816.2 8,248.6 8,425.5 8,543.1 8,560.8 8,583.0 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 Financial Statistics • January 1993 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 Mar. Apr. May June July Aug. DEBITS TO Seasonally adjusted Demand deposits3 1 All insured banks 256,150.4 277,916.3 281,050.1 305,837.0 315,651.2 292,177.4 302,259.2 336,868.4 298,612.4 2 Major New York City banks 129,319.9 131,784.0 140,905.5 164,171.5 167,177.5 154,225.3 149,743.3 179,593.4 154,231.2 3 Other banks 126,830.5 146,132.3 140,144.6 141,665.5 148,473.7 137,952.1 152,515.9 157,275.0 144,381.2 4 ATS-NOW accounts4 2,910.5 3,349.6 3,624.6 3,670.2 3,957.0 3,552.6 4,070.7 4,024.0 3,594.2 5 Savings deposits 547.5 558.8 1,377.4 3,361.0 3,356.5 3,241.4 3,838.9 3,724.9 2,995.9 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 735.1 800.6 817.6 832.5 857.4 771.2 814.2 910.5 779.4 7 Major New York City banks 3,421.5 3,804.1 4,391.9 4,974.4 5,029.1 4,438.0 4,470.1 5,425.1 4,445.7 8 Other banks 408.3 467.7 449.6 423.7 443.3 400.9 451.6 466.9 414.4 9 ATS-NOW accounts4 15.2 16.5 16.1 14.5 15.6 13.7 15.6 15.3 13.5 10 Savings deposits 3.0 2.9 3.3 4.9 4.7 4.4 5.1 5.0 4.1 DEBITS TO Not seasonally adjusted Demand deposits3 11 All insured banks 256,133.2 277,400.0 280,922.8 313,513.5 314,388.6 290,950.2 311,175.8 336,160.9 310,646.4 12 Major New York City banks 129,400.1 131,784.7 140,563.0 168,122.2 164,994.4 153,163.7 154,953.8 178,555.6 162,973.4 13 Other banks 126,733.0 145,615.3 140,359.7 145,391.3 149,394.3 137,786.5 156,222.0 157,605.3 147,673.1 14 ATS-NOW accounts4 2,910.7 3,342.2 3,622.4 3,747.2 4,104.5 3,515.5 4,032.5 3,925.6 3,669.6 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 3,363.7 3,459.2 3,031.2 3,472.9 3,461.5 3,110.6 DEPOSIT TURNOVER Demand deposits3 17 All insured banks 735.4 799.6 817.5 878.2 849.3 785.8 842.5 903.0 824.6 18 Major New York City banks 3,426.2 3,810.0 4,370.1 5,308.9 5,042.4 4,551.3 4,668.3 5,312.2 4,867.0 19 Other banks 408.0 466.3 450.6 446.9 442.7 409.3 464.7 465.4 430.2 20 ATS-NOW accounts4 15.2 16.4 16.1 14.7 15.7 13.7 15.6 15.2 14.0 21 MMDAs6 7.9 8.0 n.a n.a n.a n.a n.a n.a n.a 22 Savings deposits 2.9 2.9 3.4 4.9 4.9 4.3 4.9 4.8 4.3 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 1992 Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Seasonally adjusted 1 Total loans and securities1 2,822.7 2,838.7 2,852.0 2,854.8 2,863.1 2,877.5 2,877.6 2,883.7 2,884.3 2,897.0 2,913.0 2,924.4 2 U.S. government securities 550.8 562.6 566.2 571.2 579.5 592.3 601.7 611.6 619.4 634.0 638.7 645.7 3 Other securities 178.8 179.4 179.7 180.5 178.1 178.5 177.1 175.6 177.6 177.7 178.0 178.9 4 Total loans and leases 2,093.2 2,096.6 2,106.1 2,103.1 2,105.5 2,106.7 2,098.8 2,096.5 2,087.3 2,085.2 2,0%. 3 2,099.8 5 Commercial and industrial ..... 621.7 618.0 617.3 613.2 610.9 609.2 607.3 604.7 602.8 600.5 602.7 603.2 6 Bankers acceptances held ... 7.2 7.3 7.2 7.2 6.9 6.5 6.6 6.1 6.8 6.6 6.4 7.3 7 Other commercial and industrial 614.6 610.7 610.1 606.0 603.9 602.7 600.7 598.6 596.0 593.9 596.4 595.9 8 U.S. addressees ^ 607.9 603.3 603.7 599.5 597.3 595.8 593.5 591.6 588.4 586.5 588.7 587.8 9 Non-U.S. addressees 6.7 7.4 6.5 6.5 6.7 6.9 7.1 7.0 7.6 7.4 7.6 8.1 10 Real estate 871.9 873.1 873.5 877.5 879.4 881.4 882.6 881.3 879.2 878.7 882.8 886.9 11 Individual 363.1 363.5 363.1 363.6 362.2 360.7 358.9 359.1 358.6 357.3 356.6 355.4 12 Security 53.5 54.5 59.4 57.1 60.4 64.9 61.6 63.9 60.7 62.5 66.2 65.8 13 Nonbank financial institutions 37.8 40.6 40.8 42.6 43.7 42.7 43.0 41.9 39.9 40.9 43.8 44.2 14 Agricultural 33.8 34.0 33.7 33.5 34.3 34.4 34.3 34.8 34.8 35.3 35.3 35.0 15 State and political subdivisions 29.4 29.1 28.0 28.1 28.0 27.7 27.2 26.8 26.3 26.0 26.0 25.6 16 Foreign banks 6.9 7.4 7.2 6.7 6.5 6.5 6.9 7.5 7.8 7.0 7.9 7.2 17 Foreign official institutions 2.5 2.4 2.3 2.1 2.1 2.0 2.0 2.0 2.1 2.1 2.1 2.1 18 Lease-financing receivables .... 31.5 31.7 31.5 31.6 31.5 31.6 31.7 32.0 31.0 30.7 30.8 30.6 19 All other loans 41.1 42.4 49.2 47.1 46.5 45.6 43.3 42.6 44.0 44.3 42.1 43.8 Not seasonally adjusted 20 Total loans and securities1 2,828.1 2,845.1 2,848.8 2,857.4 2,864.0 2,876.6 2,873.1 2,884.6 2,876.7 2,893.4 2,912.2 2,926.9 21 U.S. government securities 551.7 558.6 565.7 575.1 584.9 594.5 601.8 610.6 616.7 631.8 636.5 644.4 22 Other securities 179.0 179.7 180.3 180.5 178.2 178.1 176.8 175.7 176.6 177.8 177.9 179.1 23 Total loans and leases1 2,097.4 2,106.8 2,102.8 2,101.8 2,100.8 2,104.0 2,094.6 2,098.4 2,083.4 2,083.8 2,097.8 2,103.4 24 Commercial and industrial ..... 620.4 619.3 614.2 612.4 613.5 612.1 609.6 606.6 602.6 598.8 600.0 601.7 25 Bankers acceptances held ... 7.3 7.6 7.2 7.4 6.9 6.3 6.6 6.2 6.4 6.4 6.3 7.3 26 Other commercial and industrial 613.1 611.7 606.9 605.0 606.7 605.8 603.0 600.4 596.2 592.4 593.7 594.4 27 U.S. addressees 606.9 604.7 600.0 598.1 599.8 598.6 595.9 593.1 588.6 585.0 586.2 586.9 28 Non-U.S. addressees 6.2 7.0 6.9 6.9 6.9 7.2 7.1 7.4 7.6 7.3 7.5 7.5 29 Real estate 873.2 873.4 872.9 874.5 875.9 880.2 883.2 881.6 880.4 880.7 883.7 888.4 30 Individual 364.5 368.1 367.4 363.6 359.7 358.1 357.3 357.0 356.0 356.3 358.0 356.3 31 Security 53.5 55.1 59.0 61.7 62.2 66.4 58.2 63.8 58.6 60.6 64.1 65.9 32 Nonbank financial institutions 38.1 41.9 41.3 42.3 43.1 42.3 42.3 42.2 40.2 41.1 43.2 43.7 33 Agricultural 34.1 34.0 33.2 32.7 33.0 33.4 33.9 35.0 35.6 36.2 36.4 35.9 34 State and political subdivisions 29.4 29.0 28.4 28.2 28.0 27.6 27.3 26.8 26.2 25.9 26.0 25.6 35 Foreign banks 7.3 7.9 7.0 6.6 6.4 6.4 6.8 7.2 7.7 6.9 8.0 7.4 36 Foreign official institutions 2.5 2.4 2.3 2.1 2.1 2.0 2.0 2.0 2.1 2.1 2.1 2.1 37 Lease-financing receivables .... 31.6 31.7 31.8 31.7 31.7 31.6 31.7 31.7 30.8 30.5 30.7 30.7 38 All other loans 42.6 44.1 45.4 46.0 45.2 44.0 42.3 44.4 43.4 44.6 45.8 45.6 1. Adjusted to exclude loans to commercial banks in the United States. 2. Includes noniinancial commercial paper held. Data have been revised to reflect new seasonal adjustment factors and bench- 3. United States includes the fifty states and the District of Columbia, marking to call reports. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Financial Statistics • January 1993 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Billions of dollars, monthly averages 1991r 1992r SSoouurrccee ooff ffuunnddss Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Seasonally adjusted 11 TToottaall nnoonnddeeppoossiitt ffuunnddss22 268.4 281.6 283.3 287.1 287.3 290.3 290.0 292.7 293.6 297.7 304.7 305.2 22 NNeett bbaallaanncceess dduuee ttoo rreellaatteedd ffoorreeiiggnn ooffffiicceess33 ...... 33.1 39.2 43.4 42.0 45.1 49.3 54.2 60.2 61.8 58.8 62.1 65.5 33 BBoorrrroowwiinnggss ffrroomm ootthheerr tthhaann ccoommmmeerrcciiaall bbaannkkss iinn UUnniitteedd SSttaatteess44 235.3 242.4 239.9 245.0 242.2 241.1 235.8 232.5 231.7 238.9 242.6 239.6 44 DDoommeessttiiccaallllyy cchhaarrtteerreedd bbaannkkss 152.1 154.9 156.7 160.1 156.1 153.1 148.0 144.8 143.3 149.1 150.6 152.8 55 FFoorreeiiggnn--rreellaatteedd bbaannkkss 83.2 87.5 83.1 84.9 86.1 87.9 87.8 87.7 88.5 89.8 92.1 86.9 Not seasonally adjusted 6 Total nondeposit funds 272.7 279.8 279.2 287.7 291.2 287.5 295.8 294.1 290.0 294.8 302.1 306.4 7 Net balances due to related foreign offices ... 34.0 42.7 44.1 42.2 45.5 47.8 56.7 59.8 58.3 57.2 61.4 64.8 8 Domestically chartered banks -4.4 -3.8 -4.6 -.7 -.7 -5.0 -4.3 -6.4 -7.0 -9.3 -10.8 -12.6 9 Foreign-related banks 38.5 46.5 48.7 42.9 46.3 52.9 60.9 66.2 65.3 66.5 72.1 77.4 10 Borrowings from other than commercial banks in United States 238.7 237.1 235.1 245.5 245.7 239.7 239.2 234.3 231.8 237.6 240.7 241.7 11 Domestically chartered banks 156.4 153.6 152.4 160.6 159.2 151.1 150.6 145.0 141.8 147.4 149.6 153.8 12 Federal funds and security RP borrowings 153.2 150.4 149.0 157.1 155.9 147.7 146.8 140.9 137.6 143.5 145.8 150.2 13 Other6 3.2 3.1 3.4 3.5 3.3 3.4 3.9 4.1 4.2 3.9 3.8 3.6 14 Foreign-related banks 82.3 83.5 82.7 84.9 86.5 88.5 88.5 89.4 90.0 90.2 91.1 87.9 MEMO Gross large time deposits 15 Seasonally adjusted 426.1 423.9 416.0 413.7 406.9 399.9 396.7 392.4 386.1 384.6 381.2 373.3 16 Not seasonally adjusted 425.8 422.6 413.6 412.6 407.4 398.8 398.0 393.7 385.9 386.2 382.4 373.3 U.S. Treasury demand balances at commercial banks 17 Seasonally adjusted 34.2 26.4 27.8 19.5 21.8 19.9 17.0 25.8 21.9 32.6 25.4 22.5 18 Not seasonally adjusted 28.5 25.4 33.1 25.2 20.1 17.7 21.0 25.2 19.7 22.4 28.7 21.9 1. Commercial banks are nationally and state-chartered banks in the fifty states 4. Borrowings through any instrument, such as a promissory note or due bill, and the District of Columbia, agencies and branches of foreign banks, New York given for the purpose of borrowing money for the banking business. This includes investment companies majority owned by foreign banks, and Edge Act corpora- borrowings from Federal Reserve Banks and from foreign banks, term federal tions owned by domestically chartered and foreign banks. funds, loan RPs, and sales of participations in pooled loans. Data have been revised to reflect new seasonal adjustment factors and bench- 5. Figures are based on averages of daily data reported weekly by approximarking to call reports. mately 120 large banks and quarterly or annual data reported by other banks. Data in this table also appear in the Board's G.10 (411) release. For ordering 6. Figures are partly averages of daily data and partly averages of Wednesday address, see inside front cover. data. 2. Includes federal funds, repurchase agreements (RPs), and other borrowing 7. Time deposits in denominations of $100,000 or more. Estimated averages of from nonbanks and net balances due to related foreign offices. daily data. 3. Reflects net positions of U.S. chartered banks, Edge Act corporations, and 8. U.S. Treasury demand deposits and Treasury tax-and-loan notes at com- U.S. branches and agencies of foreign banks with related foreign offices plus net mercial banks. Averages of daily data. positions with own International Banking Facilities (IBFs). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions A19 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKS1 Wednesday figures Millions of dollars 1992 AAccccoouunntt Sept. 2r Sept. 9 Sept. 16r Sept. 23r Sept. 30"^ Oct. 7 Oct. 14 Oct. 21 Oct. 28 ALL COMMERCIAL BANKING INSTITUTIONS2 Assets 1 Loans and securities 3,081,079 3,066,062 3,088,779 3,050,415 3,081,527 3,084,335 3,094,349 3,079,363 3,083,082 7 Investment securities 777,063 779,771 776,262 776,150 778,1% 780,581 784,0% 783,918 781,125 U.S. government securities 614,149 616,013 612,145 612,581 615,171 616,658 620,655 620,752 618,057 4 Other 162,915 163,758 164,117 163,568 163,024 163,923 163,441 163,166 163,068 5 Trading account assets 39,001 37,765 36,972 35,421 36,801 40,670 40,051 40,023 41,140 6 U.S. government securities 23,862 22,837 22,885 21,233 22,704 25,291 24,217 24,689 24,924 7 Other securities 2,398 2,483 2,406 2,491 2,823 3,205 3,394 3,292 3,592 8 Other trading account assets 12,741 12,445 11,682 11,697 11,274 12,174 12,441 12,043 12,624 9 Total loans 2,265,015 2,248,526 2,275,544 2,238,844 2,266,530 2,263,085 2,270,201 2,255,422 2,260,818 10 Interbank loans 170,923 158,752 172,791 143,296 162,370 161,493 167,421 151,974 157,123 11 Loans excluding interbank 2,094,092 2,089,774 2,102,754 2,095,548 2,104,160 2,101,592 2,102,781 2,103,447 2,103,695 17. Commercial and industrial 598,589 596,737 600,842 600,238 602,542 602,085 601,787 600,841 601,186 N Real estate 882,527 884,604 884,027 883,126 883,325 887,%5 888,324 887,1% 888,839 14 Revolving home equity 72,600 72,664 72,814 72,884 73,034 73,754 73,759 73,758 73,706 Other 809,927 811,940 811,213 810,242 810,291 814,211 814,565 813,437 815,133 16 Individual 357,778 357,315 358,348 358,8% 357,507 355,458 355,605 356,913 356,923 17 All other 255,198 251,118 259,536 253,288 260,786 256,084 257,064 258,497 256,748 18 Total cash assets 218,253 225,497 220,034 201,146 210,813 198,317 241,295 199,323 203,683 19 Balances with Federal Reserve Banks 28,129 28,860 27,786 25,0% 23,568 24,353 36,036 23,330 24,519 20 Cash in vault 30,596 31,736 31,379 31,107 31,069 29,551 31,915 31,326 31,658 21 Demand balances at U.S. depository institutions ... 30,802 30,963 30,899 26,%5 27,384 28,108 33,798 29,041 29,985 22 Cash items 83,736 87,964 84,196 73,266 84,282 71,797 95,371 71,847 73,333 23 Other cash assets 44,991 45,974 45,775 44,711 44,510 44,508 44,174 43,780 44,188 24 Other assets 293,698 288,403 289,958 285,725 287,119 290,194 292,102 286,859 287,228 25 Total assets 3,593,030 3,579,961 3,598,771 3,537,286 3,579,459 3,572,846 3,627,745 3,565,545 3,573,993 Liabilities 26 Total deposits 2,501,595 2,512,937 2,506,495 2,455,383 2,488,549 2,497,417 2,529,166 2,474,445 2,478,756 27 Transaction accounts 722,502 730,072 729,758 689,133 728,412 719,500 752,026 708,381 718,206 28 Demand, U.S. government 3,481 3,637 7,248 3,275 3,939 2,570 3,012 2,420 2,522 29 Demand, depository institutions 39,965 42,970 40,876 37,589 39,746 37,827 44,6% 38,174 39,037 30 Other demand and all checkable deposits 679,056 683,465 681,634 648,269 684,728 679,103 704,318 667,788 676,647 31 Savings deposits (excluding checkable) 729,358 733,742 734,235 728,334 728,991 740,647 743,231 738,898 738,848 V, Small time deposits 655,830 655,638 652,971 650,195 649,883 651,232 649,238 647,293 645,000 33 Time deposits over $100,000 393,906 393,486 389,531 387,721 381,263 386,038 384,672 379,873 376,703 34 Borrowings 513,471 489,658 521,390 501,484 499,030 485,125 508,472 4%,551 491,820 35 Treasury tax and loan notes 24,705 10,275 31,900 34,211 34,143 19,423 14,469 15,879 16,221 36 Other 488,766 479,383 489,490 467,273 464,887 465,702 494,003 480,672 475,599 37 Other liabilities 316,173 314,335 308,179 318,617 329,440 326,399 325,931 331,009 339,918 38 Total liabilities 3,331,238 3,316,929 3,336,064 3,275,484 3,317,019 3,308,941 3,363,569 3,302,004 3,310,494 39 Residual (assets less liabilities)3 261,792 263,032 262,707 261,802 262,439 263,905 264,176 263,540 263,499 Footnotes appear on the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 DomesticN onfinancial Statistics • January 1993 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKS1 Wednesday figures—Continued Millions of dollars 1992 Account Sept. 2r Sept. 9r Sept. 16r Sept. 23r Sept. 3(F Oct. 7 Oct. 14 Oct. 21 Oct. 28 DOMESTICALLY CHARTERED COMMERCIAL BANKS4 Assets 40 Loans and securities 2,733,837 2,724,420 2,739,392 2,705,795 2,730,647 2,742,318 2,745,923 2,728,830 2,733,501 41 Investment securities 717,877 719,113 716,571 716,692 717,841 720,223 722,954 722,832 721,478 42 U.S. government securities 576,564 577,529 574,727 575,110 576,430 578,282 581,270 581,111 580,029 43 Other 141,313 141,584 141,845 141,581 141,411 141,942 141,684 141,721 141,449 44 Trading account assets 39,001 37,765 36,972 35,421 36,801 40,670 40,051 40,023 41,140 45 U.S. government securities 23,862 22,837 22,885 21,233 22,704 25,291 24,217 24,689 24,924 46 Other securities 2,398 2,483 2,406 2,491 2,823 3,205 3,394 3,292 3,592 47 Other trading account assets 12,741 12,445 11,682 11,697 11,274 12,174 12,441 12,043 12,624 48 Total loans 1,976,959 1,967,542 1,985,848 1,953,682 1,976,004 1,981,425 1,982,918 1,%5,974 1,970,883 49 Interbank loans 144,484 138,883 146,487 122,885 137,636 140,866 141,835 129,414 133,375 50 Loans excluding interbank 1,832,475 1,828,659 1,839,361 1,830,797 1,838,369 1,840,559 1,841,083 1,836,561 1,837,509 51 Commercial and industrial 439,254 436,793 440,052 438,706 441,457 440,665 440,323 439,344 439,269 52 Real estate 828,123 830,334 829,842 828,865 830,602 835,230 835,485 834,350 836,439 53 Revolving home equity 72,600 72,664 72,814 72,884 73,034 73,754 73,759 73,758 73,706 54 Other 755,522 757,670 757,028 755,981 757,568 761,476 761,725 760,591 762,733 55 Individual 357,778 357,315 358,348 358,8% 357,507 355,458 355,605 356,913 356,923 56 All other 207,320 204,217 211,119 204,330 208,803 209,207 209,671 205,954 204,878 57 Total cash assets 187,487 194,349 188,826 171,403 180,116 168,779 211,379 170,974 175,099 58 Balances with Federal Reserve Banks 27,371 28,372 27,024 24,705 22,501 23,946 35,060 22,900 23,783 59 Cash in vault 30,561 31,697 31,342 31,071 31,036 29,516 31,879 31,291 31,622 60 Demand balances at U.S. depository institutions 29.206 29,298 29,198 25,494 25,814 26,690 32,167 27,552 28,520 61 Cash items 81,143 85,804 82,007 71,050 81,904 69,402 92,883 69,485 70,801 62 Other cash assets 19.207 19,179 19,255 19,084 18,861 19,225 19,391 19,746 20,373 63 Other assets 175,812 172,242 174,624 172,447 177,192 172,161 176,574 169,077 171,499 64 Total assets 3,097,136 3,091,011 3,102,842 3,049,645 3,087,954 3,083,258 3,133,877 3,068,881 3,080,099 Liabilities 65 Total deposits 2,340,314 2,352,251 2,347,332 2,297,830 2,330,577 2,339,980 2,371,971 2,318,243 2,319,907 66 Transaction accounts 711,371 719,300 718,412 678,445 716,998 708,434 740,905 697,699 707,295 67 Demand, U.S. government 3,480 3,637 7,247 3,275 3,938 2,570 3,011 2,419 2,521 68 Demand, depository institutions 37,326 40,303 37,950 35,016 36,980 35,278 42,161 35,723 36,568 69 Other demand and all checkable deposits 670,565 675,360 673,215 640,155 676,080 670,587 695,732 659,557 668,206 70 Savings deposits (excluding checkable) 724,744 729,054 729,548 723,514 724,140 735,892 738,384 733,980 734,136 71 Small time deposits 653,151 652,947 650,304 647,530 647,230 648,582 646,584 644,653 642,374 72 Time deposits over $100,000 251,048 250,950 249,068 248,341 242,210 247,071 246,098 241,912 236,101 73 Borrowings 370,535 350,629 371,861 366,175 363,350 352,404 371,138 360,952 365,181 74 Treasury tax and loan notes 24,705 10,275 31,900 34,211 34,143 19,423 14,469 15,879 16,221 75 Other 345,830 340,354 339,961 331,964 329,207 332,981 356,669 345,073 348,960 76 Other liabilities 128,069 128,673 124,514 127,410 135,161 130,543 130,164 129,719 135,086 77 Total liabilities 2,838,918 2,831,553 2,843,708 2,791,416 2,829,088 2,822,927 2,873,274 2,808,914 2,820,173 78 Residual (assets less liabilities)3 258,218 259,458 259,134 258,229 258,866 260,331 260,603 259,%7 259,926 1. Excludes assets and liabilities of International Banking Facilities. of the month based on a sample of weekly reporting foreign-related and domestic Data have been revised to reflect new seasonal adjustment factors and bench- institutions and quarter-end condition reports. marking to call reports. Revised data are available back to January 1, 1992 from 3. This balancing item is not intended as a measure of equity capital for use in the Banking and Money Market Statistics Section, Board of Governors of the capital adequacy analysis. Federal Reserve System, Washington, DC 20551. 4. Includes sill member banks and insured nonmember banks. Loans and 2. Includes insured domestically chartered commercial banks, agencies and securities data are estimates for the last Wednesday of the month based on a branches of foreign banks, Edge Act and Agreement corporations, and New York sample of weekly reporting banks and quarter-end condition reports. State foreign investment corporations. Data are estimates for the last Wednesday 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 Millions of dollars, Wednesday figures 1992 AAccccoouunntt Sept. 2 Sept. 9 Sept. 16 Sept. 23 Sept. 30" Oct. 7 Oct. 14 Oct. 21 Oct. 28 ASSETS 1 Cash and balances due from depository institutions 111,964r 116,799" 113,656" 102,365" 105,571 97,933 129,709 99,702 103,243 2 U.S. Treasury and government securities 265,584r 265,432" 262,209" 259,500" 267,218 266,192 266,091 267,738 267,627 3 Trading account 21,295 20,464 20,778 19,105 20,484 20,632 20,951 22,406 22,236 4 Investment account 244,289r 244,%7" 241,431" 240,395" 246,734 245,560 245,140 245,332 245,390 5 Mortgage-backed securities1 80,llO1 79,978" 78,564" 78,276" 79,193 78,910 78,787 79,957 80,587 All others, by maturity 6 One year or less 25,479 26,413 26,504 26,394 26,686 26,823 26,818 26,661 27,730 7 One year through five years 77,456r 77,724" 76,794" 76,183" 76,489 76,313 78,675 78,618 77,639 8 More than five years 61,245 60,852 59,569 59,541 64,367 63,515 60,860 60,0% 59,435 9 Other securities 55,380" 55,071" 54,990" 55,034" 55,009 55,576 55,569 55,439 55,241 10 Trading account 2,291 2,376 2,299 2,384 2,717 3,097 3,287 3,185 3,485 11 Investment account 53,089" 52,6%" 52,692" 52,650" 52,292 52,479 52,282 52,253 51,756 12 State and political subdivisions, by maturity 21,592" 20,973" 21,017" 21,048" 20,986 20,860 20,759 20,763 20,754 N One year or less 4,009 3,375 3,397 3,432 3,411 3,377 3,255 3,253 3,252 14 More than one year 17,583" 17,598" 17,620" 17,615" 17,576 17,483 17,504 17,510 17,503 15 Other bonds, corporate stocks, and securities 31,497" 31,723" 31,675" 31,602 31,306 31,619 31,524 31,490 31,002 16 Other trading account assets 12,506 12,208 11,445 11,459 11,039 11,936 12,204 11,808 12,389 17 Federal funds sold2 89,941 80,429 97,332 78,322 83,827 87,255 89,053 78,155 80,197 18 To commercial banks in the United States 59,855 52,407 65,874 48,514 56,245 54,951 59,267 48,863 51,969 19 To nonbank brokers and dealers 24,412 22,565 25,371 23,917 24,064 26,651 24,323 24,679 23,394 20 To others3 5,674 5,457 6,087 5,892 3,518 5,653 5,462 4,613 4,833 21 Other loans and leases, gross 971,328" %9,288" 974,610" 968,716" 977,115 973,884 977,676 972,433 975,045 22 Commercial and industrial 276,279" 274,399" 277,000" 275,633" 278,272 277,308 277,585 276,607 276,825 23 Bankers acceptances and commercial paper 1,713 1,578 1,599 1,635 1,594 1,589 1,781 1,885 1,895 24 All other 274,566" 272,821" 275,401" 273,998" 276,679 275,719 275,804 274,722 274,930 25 U.S. addressees 272,680" 271,142" 273,787" 272,319" 274,810 274,011 273,838 272,780 273,208 26 Non-U.S. addressees 1,887 1,679 1,614 1,679 1,869 1,708 1,966 1,942 1,722 27 Real estate loans 397,134" 398,372" 397,475" 3%,050" 3%,686 399,759 399,083 397,514 399,013 28 Revolving, home equity 42,174" 42,156" 42,249" 42,263" 42,457 42,9% 43,022 42,950 42,948 29 All other 354,960" 356,216" 355,226" 353,787" 354,229 356,763 356,061 354,564 356,065 30 To individuals for personal expenditures 177,050" 176,661" 177,572" 177,897" 176,904 176,099 176,175 177,008 176,974 31 To financial institutions 36,624 37,593 36,214" 35,911" 38,257 37,260 38,076 37,213 37,692 32 Commercial banks in the United States 13,382 13,749 12,502 12,723 13,598 13,635 13,954 13,230 13,800 33 Banks in foreign countries 1,940 2,533 2,519 2,347 2,975 2,021 2,264 2,713 2,373 34 Nonbank financial institutions 21,303 21,311 21,193" 20,842" 21,685 21,604 21,857 21,270 21,519 35 For purchasing and carrying securities 15,102 13,957 17,417 14,098 15,937 14,637 17,402 15,709 16,261 36 To finance agricultural production 6,306 6,256 6,243 6,188 6,262 6,222 6,220 6,183 6,151 37 To states and political subdivisions 15,5% 15,541 15,552 15,614 15,618 15,490 15,364 15,338 15,228 38 To foreign governments and official institutions 925 844 953 853 907 923 861 870 836 39 All other loans4 22,131 21,554 22,061 22,334 23,968 21,857 22,633 21,720 21,861 40 Lease-financing receivables 24,183 24,111 24,123 24,137 24,305 24,329 24,278 24,272 24,204 41 LESS: Unearned income 2,661" 2,699" 2,6%" 2,689" 2,668 2,693 2,685 2,686 2,685 42 Loan and lease reserve5 38,524 38,776 38,733 38,232 37,009 37,356 37,368 37,414 37,261 43 Other loans and leases, net 930,143" 927,814" 933,181" 927,795" 937,439 933,835 937,623 932,333 935,100 44 Other assets 164,233" 160,235" 162,404" 160,410" 163,028 159,872 163,107 157,416 159,661 45 Total assets 1,629,751 1,617,987 1,635,218 1,594,885 1,623,131 1,612,599 1,653,356 1,602,591 1,613,458 Footnotes appear on the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 DomesticN onfinancial Statistics • January 1993 1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS—Continued Millions of dollars, Wednesday figures 1992 Account Sept. 2 Sept. 9 Sept. 16 Sept. 23 Sept. 30" Oct. 7 Oct. 14 Oct. 21 Oct. 28 LIABILITIES 46 Deposits 1,120,8% 1,125,407 l,128,422r 1,093,056 1,111,347 1,116,200 1,139,430 1,100,320 1,102,5% 47 Demand deposits 260,674 262,682 267,389" 245,365 265,712 254,484 279,430 250,083 255,487 48 Individuals, partnerships, and corporations 210,992 210,261 213,411r 195,861 215,293 209,026 226,207 203,311 206,700 49 Other holders 49,682 52,422 53,978 49,504 50,418 45,458 53,223 46,772 48,788 50 States and political subdivisions 8,548 8,010 8,692 8,246 8,484 7,786 8,215 8,335 8,245 51 U.S. government 2,106 2,494 5,291 2,272 2,359 1,564 1,801 1,439 1,471 52 Depository institutions in the United States ... 23,127 24,211 23,213 21,048 21,854 21,388 26,725 22,028 22,557 53 Banks in foreign countries 4,935 6,084 5,168 5,418 6,524 5,210 5,423 4,825 5,488 54 Foreign governments and official institutions .. 725 781 979 780 934 652 576 671 699 55 Certified and officers' checks 10,242 10,842 10,636 11,740 10,263 8,857 10,483 9,473 10,328 56 Transaction balances other than demand deposits4 . 107,543 107,981 107,748 102,%9 106,683 108,604 107,075 106,658 110,515 57 Nontransaction balances 752,679 754,744 753,285 744,722 738,952 753,113 752,925 743,579 736,594 58 Individuals, partnerships, and corporations 724,871r 727,018r 726,488r 718,061r 713,345 726,726 726,227 716,941 710,087 59 Other holders 27,808r 27,726r 26,797r 26,660" 25,607 26,386 26,698 26,637 26,507 60 States and political subdivisions 22,641 22,683 22,543 22,332 21,691 22,139 22,373 22,282 22,189 61 U.S. government 2,178 2,165 2,152 2,168 1,787 2,135 2,137 2,139 2,133 62 Depository institutions in the United States ... 2,687r 2.5791 l,803r l,857r 1,826 1,809 1,883 1,903 1,868 63 Foreign governments, official institutions, and banks . 302 299 299 304 304 303 304 314 318 64 Liabilities for borrowed money5 277,731r 260,512r 278,755r 270,155 271,099 260,869 278,789 267,484 271,394 65 Borrowings from Federal Reserve Banks 0 0 1,350 0 380 0 166 0 0 66 Treasury tax and loan notes 21,600 8,122 27,248 29,180 28,973 15,211 11,437 12,340 13,191 67 Other liabilities for borrowed money 256,131r 252,390" 250,157r 240,975 241,746 245,658 267,186 255,144 258,203 68 Other liabilities (including subordinated notes and debentures) 99,804r 100,006r %,107 98,%5 106,843 101,705 100,955 100,562 105,791 69 Total liabilities 1,498,432 1,485,925 1,503,284 1,462,176 1,489,289 1,478,774 1,519,174 1,468,366 1,479,781 70 Residual (total assets less total liabilities)7 131,319 132,062 131,934 132,709 133,843 133,825 134,182 134,225 133,677 MEMO 71 Total loans and leases, gross, adjusted, plus securities' l,321,502r 1,316,271r 1,322,210"^ 1,311,795r 1,324,366 1,326,257 1,327,371 1,323,479 1,324,730 72 Time deposits in amounts of $100,000 or more 135,280 135,159 133,619 131,898 126,501 131,101 130,302 126,954 121,524 73 Loans sold outright to affiliates9 1,067 1,074 1,139 1,130 1,056 1,060 1,034 1,031 1,023 74 Commercial and industrial 587 592 5% 585 515 516 492 490 484 75 Other 480 482 543 546 541 544 542 541 539 76 Foreign branch credit extended to U.S. residents10... 24,547 24,551 24,674 24,747 24,834 24,815 24,683 25,245 25,033 77 Net due to related institutions abroad -14,122r -10,042r -13,873r - 10,538r -11,337 -11,404 -14,370 -13,440 -9,687 1. Includes certificates of participation, issued or guaranteed by agencies of the 9. Affiliates include a bank's own foreign branches, nonconsolidated nonbank U.S. government, in pools of residential mortgages. affiliates of the bank, the bank's holding company (if not a bank), and noncon- 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

Weekly Reporting Commercial Banks A23 1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS Assets and Liabilities1 Millions of dollars, Wednesday figures 1992 AAccccoouunntt Sept. 2 Sept. 9 Sept. 16 Sept. 23 Sept. 30 Oct. 7 Oct. 14 Oct. 21 Oct. 28 1 Cash and balances due from depository institutions 20,838 21,108 21,151 20,115 20,789 19,970 20,237 19,129 1199,,22%% 2 U.S. Treasury and government agency 23,683 2244,,225555 23,577 23,610 24,419 2244,,118877 2244,,882299 2244,,999922 2233,, %%55 3 Other securities 8,363 8,5% 8,636 8,520 8,368 8,518 8,426 8,299 8,370 4 Federal funds sold1 21,090 16,668 21,016 17,804 22,126 17,517 19,843 22,614 20,966 5 To commercial banks in the United States ... 7,051 3,773 7,193 4,162 6,822 4,557 7,197 5,419 5,632 6 To others2 14,039 12,895 13,823 13,643 15,303 12,960 12,646 17,195 15,333 7 Other loans and leases, gross 160,972 160,620 162,071 162,201 161,524 160,239 161,643 160,387 162,315 8 Commercial and industrial 95,846 96,217 %,733 97,186 96,966 97,178 97,205 97,133 97,408 9 Bankers acceptances and commercial paper 2,444 2,490 2,362 2,353 2,689 3,242 3,073 2,909 22,,881133 in All other 93,401 93,727 94,371 94,833 94,278 93,936 94,132 94,224 94,5% ii U.S. addressees 90,559 90,878 91,398 91,846 91,284 91,003 91,224 91,332 91,662 i? Non-U.S. addressees 2,843 2,849 2,972 2,987 2,994 2,933 2,908 2,892 2,934 13 Loans secured by real estate 36,069 35,980 35,924 35,974 34,871 34,872 34,941 35,038 34,722 14 To financial institutions 22,560 22,651 22,925 22,576 22,961 22,475 22,205 22,588 23,486 15 Commercial banks in the United States.. 6,665 6,457 6,415 6,262 5,6% 5,966 6,080 5,895 6,554 16 Banks in foreign countries 2,045 2,241 2,486 2,307 2,610 2,262 2,178 2,174 2,216 17 Nonbank financial institutions 13,850 13,954 14,023 14,006 14,655 14,248 13,946 14,520 14,716 18 For purchasing and carrying securities 3,925 3,569 4,315 4,303 4,479 3,405 4,952 3,387 4,409 19 To foreign governments and official institutions 385 385 381 377 377 371 374 378 337744 ?n All other 2,187 1,817 1,794 1,785 1,870 1,938 1,965 1,862 1,916 21 Other assets (claims on nonrelated parties) .. 29,965 30,%7 29,791 29,597 30,186 29,940 28,510 29,001 29,725 22 Total assets3 307,381 302,927 307,404 302,088 304,602 303,372 306,118 307,911 306,134 23 Deposits or credit balances due to other than directly related institutions 102,295 101,992 99,834 99,088 99,198 99,222 99,393 99,992 102,346 24 Demand deposits 3,816 3,531 3,812 3,627 4,422 3,928 3,741 3,606 3,705 25 Individuals, partnerships, and corporations 2,800 2,740 2,824 2,751 3,442 3,144 2,993 2,894 2,879 76 Other 1,016 791 988 876 980 784 748 712 826 27 Nontransaction accounts 98,480 98,461 %,023 95,461 94,775 95,294 95,652 %,386 98,641 28 Individuals, partnerships, and corporations 71,241 70,431 68,784 69,391 68,639 69,191 69,982 68,973 70,551 29 Other 27,238 28,030 27,239 26,070 26,136 26,103 25,670 27,413 28,090 30 Borrowings from other than direcdy related institutions 99,719 %,979 104,344 94,369 94,629 92,554 95,790 94,573 8888,,228888 31 Federal funds purchased 55,688 52,170 59,781 48,767 48,017 49,771 51,992 45,579 41,264 32 From commercial banks in the 16,966 14,183 22,620 10,836 17,050 17,072 16,032 11,498 11,898 33 38,722 37,987 37,161 37,931 30,%7 32,699 35,960 34,081 29,366 34 Other liabilities for borrowed money 44,031 44,809 44,563 45,602 46,612 42,783 43,797 48,994 47,024 35 To commercial banks in the United States 9,892 9,030 9,117 8,822 9,768 9,284 10,119 9,925 10,638 36 To others 34,139 35,778 35,446 36,780 36,844 33,499 33,678 39,069 36,386 37 Other liabilities to nonrelated parties 29,741 30,061 29,690 29,878 30,347 29,823 28,803 28,929 30,221 38 Total liabilities6 307,381 302,927 307,404 302,088 304,602 303,372 306,118 307,911 306,134 MEMO 39 Total loans (gross) and securities, adjusted .. 200,391 199,909 201,692 201,712 203,919 199,938 201,464 204,978 203,429 40 Net due to related institutions abroad 33,155 33,181 32,374 38,512 43,238 38,770 39,503 40,928 43,781 1. Includes securities purchased under agreements to resell. 6. Includes net to related institutions abroad for U.S. branches and agencies of 2. Includes transactions with nonbank brokers and dealers in securities. foreign banks having a net "due to" position. 3. Includes net due from related institutions abroad for U.S. branches and 7. Excludes loans to and federal funds transactions with commercial banks in agencies of foreign banks having a net "due from" position. the United States. 4. Includes other transaction deposits. 5. Includes securities sold under agreements to repurchase. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Nonfinancial Statistics • January 1993 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period Year ending December 1992 IItteemm 1987 1988 1989 1990 1991 Apr. May June July Aug. Sept. Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 358,997 458,464 525,831 561,142 530,300 537,020 533,719 542,205 547,242 545,801 549,731 Financial companies1 Dealer-placed paper2 2 Total 102,742 159,777 118833,,662222 221155,,112233 221144,,444455 222255,,998899 222266,,555522 223344,,221122 222266,,994433 223311,,558866 223333,,997777 3 Bank-related (not seasonally adjusted)3 1,428 1,248 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Directly placed paper 4 Total 174,332 194,931 221100,,993300 119999,,883355 118833,,119955 117722,,113366 116688,,991144 117711,,332211 117799,,772255 117733,,777722 117799,,773311 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 81,923 103,756 131,279 146,184 132,660 138,895 138,253 136,672 140,574 140,443 136,023 Bankers dollar acceptances (not seasonally adjusted)6 7 Total 70,565 66,631 62,972 54,771 43,770 39,335 38,384 37,767 37,733 37,090 37,814 Holder 8 Accepting banks 10,943 9,086 9,433 9,017 11,017 9,821 9,255 9,680 9,225 9,372r 10,436 9 Own bills 9,464 8,022 8,510 7,930 9,347 8,427 7,954 8,129 7,808 7,927r 9,073 10 Bills bought 1,479 1,064 924 1,087 1,670 1,394 11,,330011 11,,555511 11,,441177 11,,444466 11,,336633 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 1,598 1,477 1,338 1,269 1,851 1,803 13 Others 58,658 56,052 52,473 44,836 31,014 27,915 27,653 26,749 27,239 25,866r 25,575 Basis 14 Imports into United States 16,483 14,984 15,651 13,095r 12,843 12,045 11,893 11,569 11,825 11,600 12,227 15 Exports from United States 15,227 14,410 13,683 12,703 10,351 9,168 8,702 9,062 9,015 7,861 8,051 16 All other 38,854r 37,237 33,638 28,973 20,577 18,121 17,790 17,135 16,893 17,628 17,536 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 Date of change Rate Period Av r e a r t a e g e Period Av r e a r t a e g e Period 1989— Jan. 1 10.50 1989 10.87 1990— 10.00 1991—July Feb. 10 11.00 1990 10.01 10.00 Aug 24 11.50 1991 8.46 June .. 10.00 Sept June 5 11.00 July ... 10.00 Oct July 31 10.50 1989— Jan. 10.50 Aug. .. 10.00 Feb. 10.93 Sept. .. 10.00 Dec 1990— Jan. 8 10.00 Mar. 11.50 Oct. ... 10.00 Apr. 11.50 10.00 1992— Jan 1991— Jan. 2 9.50 May 11.50 Dec. .. 10.00 Feb Feb. 4 9.00 June 11.07 Mar May 1 8.50 July 10.98 1991— Jan. ... 9.52 Apr Sept. 13 8.00 Aug. 10.50 Feb. .. 9.05 May Nov. 6 7.50 Sept. 10.50 Mar. .. 9.00 Dec. 23 6.50 Oct. 10.50 Apr. .. 9.00 July Nov. 10.50 May ... 8.50 Aug 1992— July 2 6.00 Dec. 10.50 June . 8.50 Sept Oct 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

Financial Markets A25 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 July Aug. Sept. Oct. Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30 MONEY MARKET INSTRUMENTS 1 Federal funds1'2,3 9.21 8.10 5.69 3.25 3.30 3.22 3.10 3.41 3.20 3.20 3.05 2.% 2 Discount window borrowing^ 6.93 6.98 5.45 3.02 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Commercial paper3,5,6 3 1-month 9.11 8.15 5.89 3.43 3.38 3.25 3.22 3.26 3.15 3.23 3.27 3.26 4 3-month 8.99 8.06 5.87 3.44 3.38 3.24 3.33 3.24 3.16 3.30 3.42 3.47 5 6-month 8.80 7.95 5.85 3.53 3.44 3.26 3.33 3.22 3.17 3.30 3.44 3.48 Finance paper, directly placed3,3,7 6 1-month 8.99 8.00 5.73 3.33 3.28 3.13 3.14 3.12 3.04 3.16 3.17 3.21 7 3-month 8.72 7.87 5.71 3.33 3.27 3.08 3.24 3.10 3.09 3.24 3.32 3.38 8 6-month 8.16 7.53 5.60 3.35 3.29 3.11 3.23 3.14 3.11 3.21 3.27 3.35 Bankers acceptances3-5'8 9 3-month 8.87 7.93 5.70 3.32 3.28 3.10 3.19 3.04 3.05 3.18 3.31 3.32 10 6-month 8.67 7.80 5.67 3.42 3.35 3.13 3.19 3.04 3.04 3.18 3.31 3.32 Certificates qf deposit, secondary marker' 11 1-month 9.11 8.15 5.82 3.35 3.29 3.14 3.11 3.08 3.02 3.14 3.18 3.16 12 3-month 9.09 8.15 5.83 3.37 3.31 3.13 3.26 3.10 3.09 3.25 3.38 3.39 13 6-month 9.08 8.17 5.91 3.50 3.40 3.17 3.27 3.11 3.10 3.27 3.39 3.41 14 Eurodollar deposits, 3-month3'10 9.16 8.16 5.86 3.40 3.33 3.15 3.30 3.10 3.10 3.29 3.44 3.46 U.S. Treasury bills Secondary market • 15 3-month 8.11 7.50 5.38 3.21 3.13 2.91 2.86 2.69 2.76 2.90 2.95 2.94 16 6-month 8.03 7.46 5.44 3.28 3.21 2.% 3.04 2.82 2.88 3.01 3.17 3.19 17 1-year 7.92 7.35 5.52 3.45 3.33 3.06 3.17 2.91 2.97 3.12 3.35 3.36 Auction average ' • 18 3-month 8.12 7.51 5.42 3.28 3.14 2.97 2.84 2.73 2.67 2.88 2.94 2.97 19 6-month 8.04 7.47 5.49 3.36 3.23 3.01 2.98 2.85 2.78 2.95 3.10 3.22 20 1-year 7.91 7.36 5.54 3.65 3.28 3.02 3.12 n.a. n.a. n.a. 3.12 n.a. U.S. TREASURY NOTES AND BONDS Constant maturities12 21 1-year 8.53 7.89 5.86 3.60 3.47 3.18 3.30 3.02 3.09 3.26 3.48 3.50 22 2-year 8.57 8.16 6.49 4.36 4.19 3.89 4.08 3.75 3.83 4.02 4.28 4.35 23 3-year 8.55 8.26 6.82 4.91 4.72 4.42 4.64 4.26 4.34 4.56 4.89 4.93 24 5-year 8.50 8.37 7.37 5.84 5.60 5.38 5.60 5.26 5.35 5.52 5.83 5.85 25 7-year 8.52 8.52 7.68 6.36 6.12 5.96 6.15 5.88 5.96 6.09 6.35 6.34 26 10-year 8.49 8.55 7.86 6.84 6.59 6.42 6.59 6.32 6.39 6.54 6.78 6.78 27 30-year 8.45 8.61 8.14 7.60 7.39 7.34 7.53 7.34 7.44 7.52 7.62 7.63 Composite 28 More than 10 years (long-term) 8.58 8.74 8.16 7.40 7.19 7.08 7.26 7.05 7.14 7.24 7.38 7.39 STATE AND LOCAL NOTES AND BONDS Moody's series13 29 Aaa 7.00 6.% 6.56 5.72 5.67 5.92 6.10 5.88 6.01 6.01 6.17 6.21 30 Baa . 7.40 7.29 6.99 6.10 6.03 6.27 6.51 6.24 6.39 6.42 6.59 6.64 31 Bond Buyer series 7.23 7.27 6.92 6.13 6.16 6.25 6.41 6.27 6.29 6.34 6.53 6.62 CORPORATE BONDS 32 Seasoned issues, all industries15 9.66 9.77 9.23 8.44 8.29 8.26 8.41 8.27 8.31 8.40 8.49 8.51 Rating group 33 9.26 9.32 8.77 8.07 7.95 7.92 7.99 7.93 7.92 7.96 8.04 8.07 34 Aa 9.46 9.56 9.05 8.37 8.21 8.17 8.32 8.18 8.23 8.31 8.40 8.41 35 A 9.74 9.82 9.30 8.49 8.34 8.31 8.49 8.34 8.38 8.47 8.58 8.58 36 Baa 10.18 10.36 9.80 8.84 8.65 8.62 8.84 8.64 8.72 8.84 8.93 8.96 37 A-rated, recently offered utility bonds16 9.79 10.01 9.32 8.38 8.16 8.11 8.40 8.16 8.37 8.42 8.55 8.52 MEMO: Dividend-price ratio17 38 I'referred stocks 9.05 8.96 8.17 7.47 7.21 7.14 7.22 7.09 7.09 7.21 7.28 7.31 39 Common stocks 3.45 3.61 3.25 3.00 2.97 3.00 3.07 3.02 3.13 3.09 3.05 3.01 1. The daily effective federal funds rate is a weighted average of rates on 12. Yields on actively traded issues adjusted to constant maturities. Source: trades through New York brokers. U.S. Treasury. 2. Weekly figures are averages of seven calendar days ending on Wednesday 13. 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 3®)-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

A26 Domestic Nonfinancial Statistics • January 1993 1.36 STOCK MARKET Selected Statistics 1992 IInnddiiccaattoorr 11998899 11999900 11999911 Feb. Mar. Apr. May June July Aug. Sept. Oct. Prices and trading volume (averages of daily figures) Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 180.13 183.66 206.35 214.26 229.34 228.12 225.21 224.55 228.55 224.68 228.17 230.07 228.04 226.06 258.16 266.01 286.62 286.09 282.36 281.60 285.17 279.54 281.90 284.44 174.90 158.80 173.97 185.47 201.55 205.53 204.09 201.28 207.88 202.02 198.36 191.31 4 Utility 94.33 90.72 92.64 98.08 99.30 96.19 94.15 94.92 98.24 97.23 101.18 103.41 162.01 133.21 150.84 159.96 174.50 174.05 173.49 171.05 175.89 174.82 180.% 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) 165,568 156,359 179,411 197,914 239,903 226,476 185,581 206,251 182,027 195,089 194,138 174,003 1133,,112244 13,155 1122,,448866 1177,,447755 2200,,444444 1188,,112266 1155,,665544 1144,,00%% 1133,,445555 1111,,221166 1100,,774499 n.a. Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers 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 1133 MMaarrggiinn ssttoocckkss 70 80 65 55 65 50 1144 CCoonnvveerrttiibbllee bboonnddss 50 60 50 50 50 50 1155 SShhoorrtt ssaalleess 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 the exercise of subscription rights, corporate bonds, and Sept. 30,1985, the Board changed the required initial margin, allowing it to be the government securities. Separate reporting of data for margin stocks, convertible same as the option maintenance margin required by the appropriate exchange or bonds, 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

Financial Markets All 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1991 1992 AAccccoouunntt 11998899 11999900 Nov. Dec. Jan.r Feb. Mar.r Apr/ Mayr Juner Julyr Aug. SAIF-insured institutions 1 Assets 1,249,055 1,084,821 934,539 919,979 909,014 906,142r 883,407 872,026 870,334 862,534 856,408 856,169 2 Mortgages 733,729 633,385 557,513 551,322 545,728 541,734r 529,158 524,922 521,890 516,644 512,273 512,047 3 Mortgage-backed securities 170,532 155,228 133,341 129,461 127,371 127,766 125,272 124,763 124,225 123,452 123,363 120,417 4 Contra-assets to mortgage assets1 . 25,457 16,897 12,303 12,307 11,917 11,608r 10,979 10,949 11,121 11,280 12,051 11,143 5 Commercial loans 32,150 24,125 17,147 17,139 16,827 16,050 15,400 15,073 14,607 14,017 13,930 13,520 6 Consumer loans 58,685 48,753 42,763 41,775 40,857 39,908r 38,717 38,031 37,889 37,424 37,241 37,115 7 Contra-assets to nonmortgage loans .. 3,592 1,939 1,150 1,239 1,314 1,115 -1,008 992 949 945 810 905 8 Cash and investment securities 166,053 146,644 123,380 120,077 118,610 121,969 119,543 116,462 120,763 119,390 120,225 124,145 9 Other 116,955 95,522 73,849 73,751 72,653 71,637r 67,387 64,711 63,030 62,831 62,336 61,066 10 Liabilities and net worth . 1,249,055 1,084,821 934,539 919,979 909,014 906,142r 883,407 872,026 870,334 862,534 856,408 856,169 11 Savings capital 945,656 835,496 737,555 731,937 721,099 717,026 703,811 689,777 688,199 682,536 676,140 672,354 12 Borrowed money 252,230 197,353 125,147 121,923 119,915 118,554 110,031 111,262 110,126 108,943 109,035 110,110 13 FHLBB 124,577 100,391 66,005 65,842 62,642 63,138 62,628 62,268 61,439 62,760 62,358 62,225 14 Other 127,653 96,962 59,142 56,081 57,273 55,416 47,403 48,994 48,687 46,183 46,677 47,885 15 Other 27,556 21,332 21,690 17,560 18,941 21,329r 18,295 18,883 19,626 17,753 18,568 20,526 16 Net worth 23,612 30,640 50,148 48,559 49,009 49,233 51,271 52,104 52,354 52,300 52,664 53,179 1. Contra-assets are credit-balance accounts that must be subtracted from the NOTE. Components do not sum to totals because of rounding. Data for credit corresponding gross asset categories to yield net asset levels. Contra-assets to unions and life insurance companies have been deleted from this table. Starting in mortgage assets, mortgage loans, contracts, and pass-through securities—include the December 1991 issue, data for life insurance companies are shown in a special loans in process, unearned discounts and deferred loan fees, valuation allowances table of quarterly data. for mortgages "held for sale," and specific reserves and other valuation allow- SOURCE. Savings Association Insurance Fund (SAlF)-insured institutions: ances. Contra-assets to nonmortgage loans include loans in process, unearned Estimates by the Office of Thrift Supervision (OTS) for all institutions insured by discounts and deferred loan fees, and specific reserves and valuation allowances. the SAIF and based on the OTS thrift institution Financial Report. 2. Includes holding of stock in Federal Home Loan Bank and finance leases plus interest. 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Fiscal year Calendar year TTTyyypppeee ooofff aaaccccccooouuunnnttt ooorrr ooopppeeerrraaatttiiiooonnn 1992 11999900 11999911 11999922 May June July Aug. Sept. Oct. U.S. budget1 1 Receipts, total 1,031,308 1,054,265 1,091,692 62,303 120,920 79,080 78,218 118,344 76,833 2 On-budget 749,654 760,382 789,266 36,926 91,438 55,977 55,434 92,813 55,057 3 Off-budget 281,654 293,883 302,426 25,377 29,482 23,103 22,784 25,531 21,776 4 Outlays, total 1,251,766 1,323,757 1,381,895 109,089 117,137 122,226 102,920 112,943 125,698 5 On-budget 1,026,701 1,082,072 1,129,337 86,402 102,329 99,935 79,128 86,709 103,858 6 Off-budget 225,064 241,685 252,559 22,687 14,808 22,291 23,792 26,235 21,841 7 Surplus or deficit (-), total -220,458 -269,492 -290,204 -46,786 3,783 -43,146 -24,702 5,400 -48,865 8 On-budget -277,047 -321,690 -340,071 -49,476 -10,891 -43,958 -23,694 6,104 -48,801 9 Off-budget 56,590 52,198 49,867 2,690 14,674 812 -1,008 -704 -65 Source of financing (total) 10 Borrowing from the public 220,101 276,802 310,918 33,840 22,318 26,839 38,841 9,853 -1,552 11 Operating cash (decrease, or increase (-)) ... 818 -1,329 -17,305 20,977 -26,919 9,542 1,523 -22,807 39,420 12 Other 2 -461 -5,981 -3,409 -8,031 818 6,765 -15,662 7,554 10,997 MEMO 13 Treasury operating balance (level, end of period) 40,155 41,484 58,789 20,128 47,047 37,505 35,982 58,789 19,369 14 Federal Reserve Banks 7,638 7,928 24,586 5,583 13,630 6,923 6,232 24,586 4,413 15 Tax and loan accounts 32,517 33,556 34,203 14,545 33,417 30,581 29,749 34,203 14,956 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

A28 DomesticN onfinancial Statistics • January 1993 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1 Millions of dollars Fiscal year Calendar year Source or type 1990 1991 1992 1992 1991 1992 H2 H2 HI Aug. Sept. Oct. RECEIPTS 1 All sources 1,054,265 1,091,692 503,123 540,504 519,293 561,125 78,218 118,344 76,833 2 Individual income taxes, net 467,827 476,465 230,745 232,389 234,949 237,052 34,718 55,4% 37,288 3 Withheld 404,152 408,352 207,469 193,440 210,552 198,868 32,584 33,184 34,515 4 Presidential Election Campaign Fund . 32 30 3 31 1 19 8 1 0 5 Nonwithheld 142,693 149,342 31,728 109,405 32,276r 112,328r 3,184 24,161 3,583 6 Refunds 79,050 81,259 8,455 70,487 7,880r 74,163 1,058 1,850 809 Corporation income taxes 7 Gross receipts 113,599 117,951 54,044 58,903 54,016 61,681 2,443 21,365 4,291 8 Refunds 15,513 17,680 7,603 7,904 8,649 9,402 864 1,469 2,194 9 Social insurance taxes and contributions, net 396,011 413,689 178,468 214,303 186,839r 224,569 33,142 33,322 29,594 10 Employment taxes and contributions 370,526 385,491 167,224 199,727 175,802 208,110 28,9% 32,597 28,135 11 Self-employment taxes and contributions 25,457 24,421 2,638 22,150 3,306 20,433 0 3,988 0 12 Unemployment insurance 20,922 23,410 8,996 12,2% 8,721 14,070 3,762 316 1,034 13 Other net receipts 4,563 4,788 2,249 2,279 2,317 2,389 384 409 426 14 Excise taxes 42,430 45,570 17,535 20,703 24,428 22,389 4,051 4,093 3,670 15 Customs deposits 15,921 17,359 8,568 7,488 8,694 8,145 1,579 1,552 1,666 1 1 6 7 E M s i t s a c t e e l l a a n n d e o g u i s ft r t e a c x e e i s p ts5 2 1 2 1 , , 8 1 5 3 2 8 2 1 7 1 , , 1 1 9 4 5 3 1 5 6 , , 3 0 3 3 3 2 5 8 , , 6 9 3 9 1 1 1 5 3 , , 5 5 0 0 7 8 1 5 0 , , 7 9 0 9 1 2 2,3 8 2 2 3 7 2 1 , , 9 0 8 0 0 4 1 1, , 4 0 9 2 1 7 OUTLAYS 18 All types 1,323,757 1,381,895 647,461 632,153 694,474 705,068 102,920 112,943 125,698 19 National defense 272,514 298,188 149,497 122,089 147,572r 146,%3 21,238 25,842 27,412 20 International affairs 16,167 16,100 8,943 7,592 7,651 8,464 186 1,727 2,126 21 General science, space, and technology . 15,946 16,234 8,081 7,4% 8,473 7,952 1,352 1,159 1,410 22 Energy 2,511 4,519 1,222 1,235 l,576r 1,442 508 665 607 23 Natural resources and environment 18,708 19,870 9,933 8,324 ll,202r 8,625 1,516 1,742 3,341 24 Agriculture 14,864 14,968 6,878 7,684 7,361r 7,514 381 195 2,270 25 Commerce and housing credit 75,639 9,752 37,491 17,992 36,594r 15,583 -2,721 585 -2,262 26 Transportation 31,531 33,747 16,218 14,748 17,094 15,681 2,818 3,618 2,933 27 Community and regional development .. 7,432 7,924 3,939 3,552 3,784 3,901 570 764 1,028 28 Education, training, employment, and social services 41,479 43,586 18,988 21,234 21,110r 23,224 3,492 2,233 3,797 29 Health 71,183 89,571 31,424 35,608 41,458 43,698 7,593 8,834 8,021 30 Social security and medicare 373,495 406,570 176,353 190,247 193,156 205,443 33,593 34,460 35,320 31 Income security 171,618 199,395 75,948 88,778 87,937r 105,911 14,616 15,173 18,300 32 Veterans benefits and services 31,344 33,973 15,479 14,326 17,425 15,597 1,369 3,213 4,078 3 3 3 4 A G d en m e i r n a i l s t g r o at v i e o r n n m of e j n u t s tice 1 1 2 1 , , 2 3 9 5 5 8 1 12 4 , , 8 4 7 8 4 1 5 6 , , 2 9 6 7 5 6 6 5 , , 1 2 8 1 7 2 6 6 , , 5 8 7 3 7 lr r 7 5 , , 4 5 3 3 8 8 1, 9 1 1 5 7 5 1 1 , , 2 8 7 6 7 9 2 1 , , 5 1 2 21 9 35 Net interest6 195,012 199,422 94,650 98,556 99,318r 100,324 17,274 15,435 16,463 36 Undistributed offsetting receipts -39,356 -39,280 -19,829 -18,702 -20,435 -18,229 -2,937 -5,847 -2,7% 1. Functional details do not sum to total outlays for calendar year data because 5. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts. revisions to monthly totals have not been distributed among functions. Fiscal year 6. 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

Federal Finance A29 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars, end of month 1990 1991 1992 IItteemm Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 1 Federal debt outstanding 3,266 3,397 3,492 3,563 3,683 3,820 3,897 NA NA 2 Public debt securities 3,233 3,365 3,465 3,538 3,665 3,802 3,881 3,985 4,065 3 Held by public 2,438 2,537 2,598 2,643 2,746 2,833 2,918 NA NA 4 Held by agencies 796 828 867 895 920 969 964 NA NA 5 Agency securities 33 33 27 25 18 19 16 NA NA 6 Held by public 33 32 26 25 18 19 16 NA NA 7 Held by agencies 0 0 0 0 0 0 0 NA NA 8 Debt subject to statutory limit 3,161 3,282 3,377 3,450 3,569 3,707 3,784 3,891 3,973 9 Public debt securities 3,161 3,281 3,377 3,450 3,569 3,706 3,783 3,890 3,972 10 Other debt1 0 0 0 0 0 0 0 0 0 MEMO 11 Statutory debt limit 3,195 4,145 4,145 4,145 4,145 4,145 4,145 4,145 4,145 1. Consists of guaranteed debt ofTreasury 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 04 Ql Q2 Q3 1 Total gross public debt 2,684.4 2,953.0 3,364.8 3,801.7 3,801.7 3,881.3 3,984.7 4,064.6 By type 2 Interest-bearing 2,663.1 2,931.8 3,362.0 3,798.9 3,798.9 3,878.5 3,981.8 4,061.8 3 Marketable 1,821.3 1,945.4 2,195.8 2,471.6 2,471.6 2,552.3 2,605.1 2,677.5 4 Bills 414.0 430.6 527.4 590.4 590.4 615.8 618.2 634.3 5 Notes 1,083.6 1,151.5 1,265.2 1,430.8 1,430.8 1,477.7 1,517.6 1,566.4 6 Bonds 308.9 348.2 388.2 435.5 435.5 443.8 454.3 461.8 7 Nonmarketable 841.8 986.4 1,166.2 1,327.2 1,327.2 1,326.2 1,376.7 1,384.3 8 State and local government series 151.5 163.3 160.8 159.7 159.7 157.8 161.9 157.6 9 Foreign issues2 6.6 6.8 43.5 41.9 41.9 42.0 38.7 37.0 10 Government 6.6 6.8 43.5 41.9 41.9 42.0 38.7 37.0 11 Public .0 .0 .0 .0 .0 .0 .0 .0 12 Savings bonds and notes.. ^ 107.6 115.7 124.1 135.9 135.9 139.9 143.2 148.3 13 Government account series3 575.6 695.6 813.8 959.2 959.2 956.1 1,002.5 1,011.0 14 Non-interest-bearing 21.3 21.2 2.8 2.8 2.8 2.8 2.9 2.8 By holder 4 15 U.S. Treasury and other federal agencies and trust funds. 589.2 707.8 828.3 968.7 968.7 963.7 16 Federal Reserve Banks 238.4 228.4 259.8 281.8 281.8 267.6 17 Private investors 1,858.5 2,015.8 2,288.3 2,563.2 2,563.2 2,664.0 18 Commercial banks 184.9 164.9 171.5 233.9 233.9 240.0 19 Money market funds 11.8 14.9 45.4 80.0 80.0 84.8 20 Insurance companies 118.6 125.1 142.0 172.9 172.9 175.0 n.a. n.a. 21 Other companies 87.1 93.4 108.9 150.8 150.8 166.0 22 State and local treasuries 471.6 487.5 490.4 498.8 498.8 500.0 Individuals 23 Savings bonds 109.6 117.7 126.2 138.1 138.1 142.0 24 Other securities 79.2 98.7 107.6 125.8 125.8 126.1 25 Foreign and international5 362.2 392.9 421.7 453.4 453.4 468.0 26 Other miscellaneous investors 433.0 520.7 674.5 709.5 709.5 762.1 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

A30 Domestic Nonfinancial Statistics • January 1993 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Millions of dollars, daily averages 1992 1992, week ending Item July Aug Sept. Sept. 2 Sept. 9 Sept. 16 Sept. 23 Sept. 30 Oct. 7 Oct. 14 Oct. 21 IMMEDIATE TRANSACTIONS2 By type of security U.S. Treasury securities 1 Bills 39,895 35,523 41,374 34,875 38,338 41,851 42,769 44,531 53,581 43,627 52,154 Coupon securities, by maturity 2 Less than 3.5 years 42,881 45,267 41,727 35,819 39,308 42,698 45,148 41,634 46,668 45,459 51,612 3 3.5 to 7.5 years 43,377' 36,672 37,760" 31,889 35,730 39,574 37,191 40,488 49,037 44,527 45,359 4 7.5 to 15 years 19,672 22,308 20,476 15,837 22,815 23,107 18,130 20,177 22,875 20,041 22,779 5 15 years or more 16,132 16,539 14,240 12,034 14,286 15,362 14,874 13,329 15,904 14,548 16,667 Federal agency securities Debt, maturing in 6 Less than 3.5 years 4,334 4,343 4,979 4,826 4,891 4,109 4,490 6,471 4,534 3,573 5,528 7 3.5 to 7.5 years 670 684 588 648 617 670 391 654 1,067 532 598 8 7.5 years or more 646 536 803 616 509 910 742 1,069 950 695 1,330 Mortgage-backed 9 Pass-throughs 13,806 12,787 13,601 11,116 14,496 17,269 12,592 11,220 15,482 20,075 15,450 10 All others 4,110 3,951 4,290 4,767 2,713 4,617 4,157 5,168 3,906 4,020 2,373 By type of counterparty Primary dealers and brokers 11 U.S. Treasury securities 101,221 99,904 98,684 81,971 91,237 104,696 102,125 101,875 118,979 109,286 126,365 Federal agency securities 12 Debt 1,097 1,016 1,371 1,225 1,072 1,397 1,283 1,732 1,856 1,026 2,094 13 Mortgage-backed 8,021 7,240 7,552 5,735 7,441 9,854 8,049 5,568 7,611 9,511 7,830 Customers 14 U.S. Treasury securities 60,737 56.8931 48,483 59,240 57,8% 55,986 58,284 69,085 58,917 62,206 Federal agency securities 15 Debt 4,554 4,548 4,999 4,865 4,944 4,292 4,340 6,463 4,6% 3,774 5,362 16 Mortgage-backed 9,895 9,498 10,339 10,147 9,769 12,032 8,699 10,820 11,777 14,585 9,994 FUTURES AND FORWARD TRANSACTIONS4 By type of deliverable security U.S. Treasury securities 17 Bills 2,887r 2,354 2,969 1,791 2,121 4,960 2,827 2,271 4,431 3,766 3,673 Coupon securities, by maturity 18 Less than 3.5 years 1,762 2,216 1,915 1,815 2,373 1,962 2,037 1,418 2,240 2,060 2,440 19 3.5 to 7.5 years 1,326 1,329 1,853 1,952 2,224 1,857 1,820 1,545 1,151 1,501 865 20 7.5 to 15 years 1,969 2,713 2,950 2,311 2,482 3,859 3,283 2,336 2,949 3,380 3,283 21 15 years or more 9,621r 10,152 10,091 8,153 10,535 12,172 10,808 7,712 11,297 11,165 11,234 Federal agency securities Debt, maturing in 22 Less than 3.5 years 20 81 182 13 132 59 52 151 50 23 3.5 to 7.5 years 61 147 87 156 141 58 11 84 10 NA 24 7.5 years or more 37 44 44 13 12 6 7 19 21 Mortgage-backed 25 Pass-throughs 16,925 15,902 16,571 12,766 17,497 17,826 15,341 17,327 18,013 22,966 16,206 26 Others 3,246 2,832 2,476 2,755 1,845 2,490 2,410 2,920 2,218 1,862 1,754 OPTIONS TRANSACTIONS5 By type of underlying security U.S. Treasury, coupon securities, by maturity 27 Less than 3.5 years 1,550 1,431 1,084 784 1,365 1,052 1,287 1,259 1,569 1,388 28 3.5 to 7.5 years 635 433 618 301 619 603 568 654 1,180 730 29 7.5 to 15 years 685 1,054 825 1,070 1,132 633 1,064 436 787 515 834 30 15 years or more 2,520 2,795 2,009 1,471 2,469 1,700 3,000 1,174 1,392 1,743 1,569 Federal agency, mortgagebacked securities 31 Pass-throughs 452 427 401 155 402 371 211 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

Federal Finance A31 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 1992 1992, week ending item July Aug. Sept. Sept. 2 Sept. 9 Sept. 16 Sept. 23 Sept. 30 Oct. 7 Oct. 14 Oct. 21 Positions2 NET IMMEDIATE POSITIONS3 By type of security U.S. Treasury securities 1 Bills 10,399 8,264 14,539 12,122 13,595 12,450 18,295 14,507 13,176 13,663 12,162 Coupon securities, by maturity 2 Less than 3.5 years -7,674 -2,799 -1,572 -3,427 -3,476 -4,158 -130 2,004 4,193 -303 -1,491 3 3.5 to 7.5 years -7,629 -10,045 -13,636' -11,916 -15,727 -14,788 -10,164 -14,355 -15,049 -14,011 -15,442 4 7.5 to 15 years -6,825 -6,464 -10,785 -7,148 -8,733 -10,700 -11,045 -13,701 -14,535 -12,729 -11,429 5 15 years or more 2,970 5,204 5,795 5,212 5,926 5,119 5,654 6,647 6,%3 8,356 5,902 Federal agency securities Debt, maturing in 6 Less than 3.5 years 4,944 6,256 6,040 7,348 6,432 5,595 7,071 4,688 6,027 7,372 6,727 7 3.5 to 7.5 years 2,908 3,194 3,033 3,0% 3,106 2,964 2,942 3,102 3,074 3,069 2,865 8 7.5 years or more 3,481 4,233 4,285 4,543 4,569 4,319 4,366 3,811 4,361 4,305 4,191 Mortgage-backed 9 Pass-throughs 30,255 30,749 29,518r 21,604 33,745 37,553 30,419 18,616 28,245 39,763 32,132 10 All others 22,090 23,366 27,455r 24,863 24,672 26,538 27,493 31,859 26,362 26,100 25,901 Other money market instruments 11 Certificates of deposit 2,811 3,734 3,852 4,042 3,600 4,254 3,558 3,943 4,1% 3,530 2,924 12 Commercial paper 6,021 5,542 6,389 5,941 6,545 6,919 5,713 6,509 6,663 7,379 4,842 13 Bankers acceptances 1,158 978 1,053 1,019 1,023 1,066 793 1,338 708 640 685 FUTURES AND FORWARD POSITIONS5 By type of deliverable security U.S. Treasury securities 14 Bills -6,214 -6,189 -5,557 -4,055 -5,734 -8,014 -6,015 -2,894 --77,,558866 -4,607 1,221 Coupon securities, by maturity 15 Less than 3.5 years 2,260 1,543 1,448 1,354 1,826 1,807 1,876 309 711 291 261 16 3.5 to 7.5 years 3,031 3,030 2,012r 2,050 1,639 1,662 2,608 2,129 3,074 1,814 2,455 17 7.5 to 15 years -450 399 526r -121 -463 44 246 2,463 2,999 1,617 2,453 18 15 years or more -7,899"" -7,645 -4,380 -5,384 -6,061 -4,254 -2,891 -4,025 -3,479 -4,468 -4,552 Federal agency securities Debt, maturing in 19 Less than 3.5 years 59 3 -10 65 -23 7 14 -58 136 361 77 20 3.5 to 7.5 years -79 -2 -73 2 -76 -153 14 -98 -69 -62 16 21 7.5 years or more 45 -20 -44 -70 -81 -70 -10 -8 8 59 -44 Mortgage-backed 22 Pass-throughs -20,201 -18,255 -13,731 -8,463 -17,543 -22,571 -14,714 -1,599 -11,667 -23,833 -13,734 23 All others 4,672 5,955 6,241 4,862 6,272 7,347 7,466 4,272 6,120 6,299 6,162 24 Certificates of deposit -232,567 -251,401 -242,241 -250,638 -251,740 -257,037 -226,981 -230,805 -203,358 -180,858 -159,387 Financing6 Reverse repurchase agreements 25 Overnight and continuing 214,805 218,808 209,905 209,252 220,175 214,663 202,%1 202,009 214,339 223,501 210,604 26 Term 315,020 320,431 310,234 295,997 313,881 333,993 343,265 253,866 328,676 330,562 348,644 Repurchase agreements 27 Overnight and continuing 356,881 361,098 369,41 lr 363,112 376,527 379,964 371,852 351,100 379,870 399,164 388,641 28 Term 287,022 300,209 285,332 271,228 282,138 307,902 321,059 234,258 299,232 303,155 322,762 Securities borrowed 29 Overnight and continuing 92,740 97,726 100,438 99,204 102,780 103,327 103,169 92,827 97,890 100,174 104,332 30 Term 37,846 40,171 42,957 42,404 42,274 42,940 45,998 40,774 43,698 43,066 44,878 Securities loaned 31 Overnight and continuing 8,173 8,822 9,802 8,723 9,398 9,491 10,547 10,080 9,617 10,552 10,417 32 Term 1,008 1,496 854 790 667 839 1,317 613 635 498 779 Collateralized loans 33 Overnight and continuing 17,919 19,635 17,75c 18,886 17,366 17,416 17,475 18,419 17,536 16,833 16,527 MEMO: Matched book7 Reverse repurchase agreements 34 Overnight and continuing 152,606 151,137 144,415 142,383 150,089 148,377 141,458 138,317 147,193 152,355 141,889 35 Term 269,912 272,361 267,773' 253,585 269,694 288,004 294,999 222,450 289,415 289,497 300,393 Repurchase agreements 36 Overnight and continuing 194,278 182,822 188,263 190,283 188,294 195,613 183,730 184,839 198,684 207,204 197,181 37 Term 212,775 229,511 215,9%' 201,772 218,264 233,305 243,500 172,981 233,074 231,490 242,405 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 coilateralization. 5. Futures positions are standardized contracts arranged on an exchange. NOTE. Data for futures and forward commercial paper and bankers acceptances and Forward positions reflect agreements made in the over-the-counter market that for term financing of collateralized loans are no longer available because of insufficient specify delayed delivery. All futures positions are included regardless of time to activity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • January 1993 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1992 AAggeennccyy 11998888 11998899 11999900 11999911 Apr. May June July Aug. 1 Federal and federally sponsored agencies 381,498 411,805 434,668 442,772 449,472 449,561 457,182 456,885 464,289 2 Federal agencies 35,668 35,664 42,159 41,035 40,788 40,535 40,388 39,773 40,034 3 Defense Department 8 7 7 7 7 7 7 7 7 4 Export-Import Bank ' 11,033 10,985 11,376 9,809 8,644 8,644 8,156 8,156 8,156 5 Federal Housing Administration 150 328 393 397 419 427 432 194 229 6 Government National Mortgage Association certificates of participation 0 0 0 0 0 0 0 0 0 7 Postal Service6 6,142 6,445 6,948 8,421 9,771 9,771 10,123 10,123 10,123 8 Tennessee Valley Authority 18,335 17,899 23,435 22,401 21,947 21,686 21,670 21,293 21,519 9 United States Railway Association 0 0 0 0 0 0 0 0 0 10 Federally sponsored agencies7 345,830 375,407 392,509 401,737 408,684 409,026 416,794 417,112 424,255 11 Federal Home Loan Banks 135,836 136,108 117,895 107,543 107,011 106,368 106,050 107,343 108,564 12 Federal Home Loan Mortgage Corporation 22,797 26,148 30,941 30,262 25,233 27,612 32,479 33,959 34,295 13 Federal National Mortgage Association 105,459 116,064 123,403 133,937 145,856 144,655 149,013 147,377 150,280 14 Farm Credit Banks8 53,127 54,864 53,590 52,199 52,368 52,080 51,805 49,241 52,137 15 Student Loan Marketing Association 22,073 28,705 34,194 38,319 38,739 38,885 38,020 39,765 39,552 16 Financing Corporation 5,850 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 17 Farm Credit Financial Assistance Corporation 690 847 1,261 1,261 1,261 1,261 1,261 1,261 1,261 18 Resolution Funding Corporation 0 4,522 23,055 29,9% 29,9% 29,9% 29,9% 29,9% 29,9% MEMO 19 Federal Financing Bank debt13 142,850 134,873 179,083 185,576 186,879 179,617 180,848 177,700 174,003 Lending to federal and federally sponsored agencies 20 Export-Import Bank 11,027 10,979 11,370 9,803 8,638 8,638 8,150 8,150 8,150 21 Postal Service6 5,892 6,195 6,698 8,201 9,551 9,551 9,903 9,903 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 9,325 9,025 9,025 8,475 7,275 24 United States Railway Association 0 0 0 0 0 0 0 0 0 Other lending14 25 Farmers Home Administration 58,496 53,311 52,324 48,534 47,634 45,434 44,784 43,209 43,009 26 Rural Electrification Administration 19,246 19,265 18,890 18,562 18,440 18,473 18,199 18,227 18,238 27 Other 26,324 23,724 70,8% 84,931 88,471 83,676 85,%7 84,916 82,608 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 amounts guaranteed by any 8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, one agency generally being small. The Farmers Home Administration entry shown in line 17. consists exclusively of agency assets, while the Rural Electrification Administra- 9. Before late 1982, the Association obtained financing through the Federal tion entry 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

Securities Market and Corporate Finance A33 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1992 TTyyppee ooff ii oo ss rr ss uu uu ee ss ee oo rr iissssuueerr,, 11998899 11999900 11999911 Mar. Apr. May June July Aug. Sept/ Oct. 1 All issues, new and refunding1 113,646 120,339 154,402 17,064 16,922 16,935 24,084 17,386 19,774 18,698 21,092 By type of issue 2 General obligation 35,774 39,610 55,100 6,432 5,251 5,995 8,806 7,136 7,005 7,461 7,733 3 Revenue 77,873 81,295 99,302 10,632 11,671 10,940 15,278 10,250 12,769 11,237 13,359 By type of issuer 4 State 11,819 15,149 24,939 3,174 575 1,165 2,063 2,836 1,933 1,710 2,742 5 Special district or statutory authority 71,022 72,661 80,614 8,619 11,583 11,031 16,477 10,040 11,203 11,054 13,113 6 Municipality, county, or township 30,805 32,510 48,849 5,271 4,764 4,739 5,544 4,510 5,638 5,934 5,237 7 Issues for new capital, total 84,062 103,235 116,953 10,637 9,020 9,259 14,096 7,565 11,993 10,496 13,760 By use of proceeds 8 Education 15,133 17,042 21,121 1,075 2,208 1,651 2,132 1,747 1,737 1,237 2,083 9 Transportation 6,870 11,650 13,395 1,412 921 1,669 2,618 571 2,130 1,977 1,364 10 Utilities and conservation 11,427 11,739 21,039 2,104 1,380 771 1,851 629 2,604 2,265 3,340 11 Social welfare 16,703 23,099 25,648 1,811 2,582 2,045 4,266 887 767 1,869 2,365 12 Industrial aid 5,036 6,117 8,376 528 558 133 724 91 503 1,176 367 13 Other purposes 28,894 34,607 30,275 3,707 1,371 2,990 2,505 3,640 4,252 1,972 4,241 1. Par amounts of long-term issues based on date of sale. SOURCES. Investment Dealer's Digest beginning April 1990. Securities Data/ 2. Since 1986, has included school districts. Bond Buyer Municipal Data Base beginning 1986. Public Securities Association for earlier data. 1.46 NEW SECURITY ISSUES U.S. Corporations Millions of dollars 1992 TTyyppee ooff iissssuuee,, ooffffeerriinngg,, 11998899 11999900 11999911rr oorr iissssuueerr Feb. Mar. Apr. May June July Aug. Sept. 1 All issues' 377,836 339,052 465,389 37,494 38,303 28,948 44,947 47,985 46, ntf 36,855r 42,468 2 Bonds2 319,965 298,814 389,968 27,958 31,946 23,610 38,031 38,988 39,693r 31,579r 37,158 By type of offering 3 Public, domestic 179,694 188,778 287,076 26,331 29,417 22,236 35,059 35,960 37,768r 2288,,335500** 36,300 4 Private placement, domestic 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 1,626 2,529 1,373 2,972 3,027 1,924 3,254r 1,200 By industry group 6 Manufacturing 74,736r 51,779* 86,627 3,940 8,955 4,170 6,046 7,263 5,509 44,,TTiiffff 5,610 7 Commercial and miscellaneous 50,268r 40,719r 36,681 1,664 3,670 2,351 2,472 1,630 3,476 2,230 2,253 8 Transportation 10,221r 12,776r 13,598 1,004 641 140 621 899 766 393 677 9 Public utility 18,61lr 17,621 23,949 3,569 1,896 3,462 3,041 4,251 6,909 4,401 5,218 10 Communication 9,276r 6,687r 9,431 416 725 1,205 1,590 1,028 2,081 l,053r 1,156 11 Real estate and financial 156,853r 169,231 219,682 17,364 16,060 12,282 24,261 23,916 20,95lr 18,783r 22,243 12 Stocks2 57,870 40,165 75,467 9,536 6,357 5,338 6,916 8,997 6,477 5,276 5,310 By type of offering 13 Public preferred 6,194 3,998 17,408 4,306 625 334 1,552 2,916 2,413 1,148 1,233 14 Common 26,030 19,443 47,860 5,230 5,732 5,004 5,364 6,081 4,064 4,129 4,077 15 Private placement3 25,647 16,736 10,109 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. By industry group 16 Manufacturing 9,308 5,649 24,154 2,541 2,637 1,523 2,499 3,000 857 713 307 17 Commercial and miscellaneous 7,446 10,171 19,418 3,194 1,595 1,162 2,010 1,070 1,599 1,287 487 18 Transportation n.a.r n.a.r n.a. n.a.r n.a.r n.a. n.a/ n.a/ n.a. n.a. n.a. 19 Public utility 3,090 416 3,474 489 704 577 826 610 564 921 595 20 Communication n.a.r n.a.r n.a. n.a. n.a.r n.a/ n.a/ n.a. n.a. n.a. n.a. 21 Real estate and financial 34,028 19,738 25,507 3,234 1,175 1,691 1,324 3,254 3,457 2,327 2,695 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

A34 Domestic Nonfinancial Statistics • January 1993 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Assets Millions of dollars 1992 IItteemm11 11999900 11999911 Feb. Mar. Apr. May June July Aug. Sept. 1 Sales of own shares2 344,420 464,488 48,015 50,462 52,309 48,127 51,457 54,915 50,627 50,378 288,441 342,088 30,869 35,464 39,302 31,409 37,457 34,384 35,223 37,887 3 Net sales3 55,979 122,400 17,146 14,998 13,007 16,718 14,000 20,703 15,404 12,491 4 Assets4 568,517 807,001 846,868 848,842 870,011 897,211 911,218 951,806 957,145 977,321 5 Cash5 48,638 60,937 64,022 64,216 67,632 67,270 69,508 72,732 77,245 77,380 6 Other 519,875 746,064 782,846 781,626 802,379 829,941 841,710 879,074 879,900 899,941 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 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1 Profits with inventory valuation and capital consumption adjustment 362.8 361.7 346.3 344.0 349.6 347.3 341.2 347.1 384.0 388.4 370.4 2 Profits before taxes 342.9 355.4 334.7 354.7 337.6 332.3 336.7 332.3 366.1 376.8 350.5 3 Profits tax liability 141.3 136.7 124.0 133.7 121.3 122.9 127.0 125.0 136.4 144.1 131.7 4 Profits after taxes 201.6 218.7 210.7 221.0 216.3 209.4 209.6 207.4 229.7 232.7 218.8 5 Dividends 134.6 149.3 146.5 151.9 150.6 146.2 145.1 143.9 143.6 146.6 151.1 6 Undistributed profits 67.1 69.4 64.2 69.1 65.7 63.2 64.5 63.4 86.2 86.1 67.7 7 Inventory valuation -17.5 -14.2 3.1 -21.2 6.7 9.9 -4.8 .7 -5.4 -15.5 -9.8 8 Capital consumption adjustment 37.4 20.5 8.4 10.5 5.3 5.1 9.3 14.1 23.3 27.0 29.7 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"" Q1 Q2 Q3 Q4 Ql Q2 Q3 04' 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 other 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

Securities Markets and Corporate Finance A35 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities Billions of dollars, end of period; not seasonally adjusted 1990 1991 1992 AAccccoouunntt 11998899 11999900 11999911 Q4 QL Q2 Q3 Q4 QL Q2 ASSETS 1 Accounts receivable, gross1 462.9 492.9 480.3 492.9 482.9 488.5 484.7 480.3 475.7 477.0 2 Consumer 138.9 133.9 121.9 133.9 127.1 127.5 125.3 121.9 118.4 116.7 3 Business 270.2 293.5 292.6 293.5 291.7 295.2 293.2 292.6 291.6 293.9 4 Real estate 53.8 65.5 65.8 65.5 64.1 65.7 66.2 65.8 65.8 66.4 5 LESS: Reserves for unearned income 54.7 57.6 55.1 57.6 57.2 58.0 57.6 55.1 53.6 51.2 6 Reserves for.losses 8.4 9.6 12.9 9.6 10.7 11.1 13.1 12.9 13.0 12.3 7 Accounts receivable, net 399.8 425.7 412.3 425.7 415.0 419.3 414.1 412.3 409.1 413.6 8 All other 102.6 113.9 149.0 113.9 118.7 122.8 136.4 149.0 145.5 139.4 9 Total assets 502.4 539.6 561.2 539.6 533.7 542.1 550.5 561.2 554.6 553.0 LIABILITIES AND CAPITAL 10 Bank loans 27.0 31.0 42.3 31.0 35.6 36.9 39.6 42.3 38.0 37.8 11 Commercial paper 160.7 165.3 159.5 165.3 155.5 156.1 156.8 159.5 154.4 147.7 Debt 12 Other short-term n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 1 1 4 3 D Lo u n e g t - o te p rm ar ent v n 3 . 5 a . . 2 n 3 . 7 a . . 5 n 3 . 4 a . . 5 n 3 . 7 a . . 5 n 3 . 2 a . . 4 n 3 . 4 a . . 2 n 3 . 6 a . . 5 n 3 . 4 a . . 5 n 3 . 4 a . . 5 n 3 . 4 a . . 8 15 Not elsewhere classified 162.7 178.2 191.3 178.2 182.4 184.5 185.0 191.3 189.8 191.9 16 All other liabilities 61.5 63.9 69.0 63.9 64.3 67.1 68.8 69.0 72.0 73.4 17 Capital, surplus, and undivided profits 55.2 63.7 64.8 63.7 63.4 63.3 63.8 64.8 66.0 67.1 18 Total liabilities and capital 502.4 539.6 561.2 539.6 533.7 542.1 550.5 561.2 554.6 548.4 1.52 DOMESTIC FINANCE COMPANIES Business Credit Outstanding and Net Change1 Millions of dollars, end of period; seasonally adjusted except as noted 1992 TTyyppee ooff ccrreeddiitt Apr. May June July Aug.r Sept. SEASONALLY ADJUSTED 1 Total 481,436 523,023 519,573 520,242 519,668 520,804 522,834 528,117 526,862 2 Consumer 157,766 161,070 154,786 156,103 154,989 154,850 153,588 154,729 156,360 3 Real estate2 53,518 65,147 65,388 67,032 66,898 66,433 66,843 67,753 67,697 4 Business 270,152 296,807 299,400 297,107 297,781 299,521 302,403 305,634 302,805 NOT SEASONALLY ADJUSTED 5 484,566 526,441 522,853 522,017 520,682 524,587 522,686 523,448 524,029 6 Consumer 158,542 161,965 155,677 155,106 154,414 154,859 154,099 155,529 157,161 7 Motor vehicles 84,126 75,045 63,413 61,717 59,399 60,056 60,400 60,393 60,507 8 Other consumer 54,732 58,818 58,488 56,647 56,740 56,634 56,568 56,782 56,844 9 Securitized motor vehicles 13,690 19,837 23,166 24,697 26,529 26,195 25,392 26,852 28,204 10 Securitized other consumer 5,994 8,265 10,610 12,045 11,746 11,974 11,739 11,503 11,606 11 Real estate2 53,781 65,509 65,764 66,604 66,650 66,437 67,065 68,104 68,044 12 Business 272,243 298,967 301,412 300,307 299,618 303,291 301,522 299,815 298,824 13 Motor vehicles 90,416 92,072 90,319 89,105 88,585 90,075 87,686 85,745 84,560 14 Retail5..., 29,505 26,401 22,507 20,842 20,143 20,674 21,086 20,743 19,706 15 Wholesale6 34,093 33,573 31,216 31,161 30,893 30,505 27,158 n.a. n.a. 16 Leasing 26,818 32,098 36,596 37,102 37,549 38,896 39,443 39,889 39,506 17 Equipment 122,246 137,654 141,399 143,510 143,431 145,994 145,787 145,790 147,926 18 Retail 29,828 31,968 30,962 31,824 31,569 32,610 32,370 32,250 31,571 19 Wholesale6 6,452 11,101 9,671 9,217 9,116 9,194 9,128 9,084 8,994 20 Leasing 85,966 94,585 100,766 102,469 102,746 104,190 104,289 104,455 107,361 21 Other business7 57,560 63,774 60,887 59,573 59,291 57,586 59,099 59,013 56,792 22 Securitized business assets n.a. 5,467 8,807 8,119 8,311 9,636 8,951 9,268 9,546 23 Retail 710 667 576 206 196 178 170 158 152 24 Wholesale n.a. 3,281 5,285 5,137 5,147 5,231 4,649 5,193 5,378 25 Leasing 1,311 1,519 2,946 2,776 2,968 4,227 4,132 3,917 4,016 1. Includes finance company subsidiaries of bank holding companies but not of 5. Passenger car fleets and commercial land vehicles for which licenses are retailers and banks. Data are before deductions for unearned income and losses. required. Data in this table also appear in the Board's G.20 (422) monthly statistical release. 6. Credit arising from transactions between manufacturers and dealers, that is, For ordering address, see inside front cover. floor plan financing. 2. Includes all loans secured by liens on any type of real estate, for example, 7. Includes loans on commercial accounts receivable, factored commercial first and junior mortgages and home equity loans. accounts, and receivable dealer capital; small loans used primarily for business or 3. Includes personal cash loans, mobile home loans, and loans to purchase other farm purposes; and wholesale and lease paper for mobile homes, campers, and types of consumer goods such as appliances, apparel, general merchandise, and travel trailers. recreation vehicles. Digitized for FRA4.S OEutRst anding balances of pools upon which securities have been issued; these balances are no longer carried on the balance sheets of the loan originator. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic Nonfinancial Statistics • January 1993 1.53 MORTGAGE MARKETS Conventional Mortgages on New Homes Millions of dollars, except as noted 1992 IItteemm 11998899 11999900 11999911 Apr. May June July Aug. Sept. Oct. 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 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/V A-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)1 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/V A-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 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

Real Estate A37 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1991 1992 TTyyppee ooff hhoollddeerr aanndd pprrooppeerrttyy 11998888 11998899 11999900 Q2 Q3 Q4 Of Q2P 1 All holders 3,275,697 3,561,685 3,807,306 3,898,924 3,912,518 3,927,396 3,971,687 3,999,102 By type of property 2 One- to four-family residences 2,203,973 2,432,222 2,649,436 2,726,425 2,758,976 2,781,078 2,833,365 2,873,755 3 Multifamily residences 292,590 304,612 310,619 315,404 308,047 308,844 308,510 301,007 4 Commercial 693,888 740,826 763,281 773,315 762,330 754,300 746,902 740,760 5 Farm 85,247 84,025 83,969 83,779 83,165 83,173 82,910 83,579 By type of holder 6 Major financial institutions 1,831,472 1,931,537 1,914,315 1,898,492 1,860,710 1,846,910 1,825,983 1,807,045 7 Commercial banks 674,003 767,069 844,826 871,416 870,937 876,284 880,377 884,598 8 One- to four-family 334,367 389,632 455,931 476,363 478,851 486,572 492,910 4%,518 9 Multifamily 33,912 38,876 37,015 37,564 36,398 37,424 37,710 38,314 10 Commercial 290,254 321,906 334,648 339,450 337,365 333,852 330,837 330,229 11 Farm 15,470 16,656 17,231 18,039 18,323 18,436 18,919 19,538 12 Savings institutions 924,606 910,254 801,628 755,403 719,679 705,367 682,338 660,547 13 One- to four-family 671,722 669,220 600,154 570,015 547,799 538,358 524,536 509,397 14 Multifamily 110,775 106,014 91,806 86,483 81,883 79,881 77,166 74,837 15 Commercial 141,433 134,370 109,168 98,457 89,595 86,741 80,278 75,969 16 Farm 676 650 500 448 402 388 358 345 17 Life insurance companies 232,863 254,214 267,861 271,674 270,094 265,258 263,269 261,900 18 One- to four-family 11,164 12,231 13,005 11,743 11,720 11,547 11,214 11,087 19 Multifamily 24,560 26,907 28,979 30,006 29,962 29,562 29,693 29,745 20 Commercial 187,549 205,472 215,121 219,204 218,179 214,105 212,865 211,913 21 Farm 9,590 9,604 10,756 10,721 10,233 10,044 9,497 9,155 22 Finance companies4 37,846 45,476 48,777 48,972 50,658 51,567 50,573 55,933 23 Federal and related agencies 200,570 209,498 250,761 276,797 282,115 282,856 2%,664 297,618 24 Government National Mortgage Association 26 23 20 20 20 19 19 23 25 One- to four-family 26 23 20 20 20 19 19 23 26 Multifamily 0 0 0 0 0 0 0 0 27 Farmers Home Administration 42,018 41,176 41,439 41,430 41,566 41,713 41,791 41,628 28 One- to four-family 18,347 18,422 18,527 18,521 18,598 18,496 18,488 17,718 29 Multifamily 8,513 9,054 9,640 9,898 9,990 10,141 10,270 10,356 30 Commercial 5,343 4,443 4,690 4,750 4,829 4,905 4,961 4,998 31 Farm 9,815 9,257 8,582 8,261 8,149 8,171 8,072 8,557 32 Federal Housing and Veterans' Administrations 5,973 6,087 8,801 10,210 10,057 10,733 11,332 11,798 33 One- to four-family 2,672 2,875 3,593 3,729 3,649 4,036 4,254 4,124 34 Multifamily 3,301 3,212 5,208 6,480 6,408 6,697 7,078 7,674 35 Federal National Mortgage Association 103,013 110,721 116,628 122,806 125,451 128,983 136,506 142,148 36 One- to four-family 95,833 102,295 106,081 111,560 113,696 117,087 124,137 129,392 37 Multifamily 7,180 8,426 10,547 11,246 11,755 11,896 12,369 12,756 38 Federal Land Banks 32,115 29,640 29,416 29,152 29,053 28,777 28,776 28,775 39 One- to four-family 1,890 1,210 1,838 2,041 2,124 1,693 1,693 1,693 40 Farm 30,225 28,430 27,577 27,111 26,929 27,084 27,083 27,082 41 Federal Home L,oan Mortgage Corporation 17,425 21,851 21,857 23,649 23,906 26,809 28,895 28,621 42 One- to four-family 15,077 18,248 19,185 21,120 21,489 24,125 26,182 26,001 43 Multifamily 2,348 3,603 2,672 2,529 2,417 2,684 2,713 2,620 44 Mortgage pools or trusts6 811,847 946,766 1,110,555 1,188,626 1,229,836 1,262,685 1,302,217 1,339,172 45 Government National Mortgage Association 340,527 368,367 403,613 416,082 422,500 425,295 421,977 422,922 46 One- to four-family 331,257 358,142 391,505 403,679 412,715 415,767 412,574 413,828 47 Multifamily 9,270 10,225 12,108 12,403 9,785 9,528 9,404 9,094 48 Federal Home Lx>an Mortgage Corporation 226,406 272,870 316,359 341,132 348,843 359,163 367,878 382,797 49 One- to four-family 219,988 266,060 308,369 332,624 341,183 351,906 360,887 376,177 50 Multifamily 6,418 6,810 7,990 8,509 7,660 7,257 6,991 6,620 51 Federal National Mortgage Association 178,250 228,232 299,833 331,089 351,917 371,984 389,853 413,226 52 One- to four-family 172,331 219,577 291,194 322,444 343,430 362,667 380,617 403,940 53 Multifamily 5,919 8,655 8,639 8,645 8,487 9,317 9,236 9,286 54 Farmers Home Administration 104 80 66 55 52 47 43 43 55 One- to four-family 26 21 17 13 12 11 10 9 56 Multifamily 0 0 0 0 0 0 0 0 57 Commercial 38 26 24 21 20 19 18 18 58 Farm 40 33 26 21 20 17 16 15 59 Individuals and others7 431,808 473,884 531,674 535,009 539,858 534,945 546,823 555,267 60 One- to four-family 262,713 297,050 333,532 333,256 336,711 330,062 340,561 348,631 61 Multifamily 80,394 82,830 87,950 87,002 87,351 87,440 86,975 86,390 62 Commercial 69,270 74,609 90,894 95,573 96,687 98,409 100,321 101,358 63 Farm 19,431 19,395 19,298 19,178 19,109 19,034 18,966 18,887 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

A38 Domestic Nonfinancial Statistics • January 1993 1.55 CONSUMER INSTALLMENT CREDIT Total Outstanding1 Millions of dollars, amounts outstanding, end of period 1992 HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt 11998899 11999900 11999911 Apr. May June July Aug.1 Sept. Seasonally adjusted 11 TToottaall 716,825 735,338 727,799 723,821 722,928 722,919 721,820 720,664 722,271 22 AAuuttoommoobbiillee 292,002 284,993 263,003 260,376 259,834 257,339 257.743 256,944 257,853 33 RReevvoollvviinngg 199,308 222,950 242,785 245,905 246,220 247,418 247,332 248,043 249,867 44 OOtthheerr 225,515 227,395 222,012 217,541 216,874 218,162 216.744 215,677 214,550 Not seasonally adjusted 5 Total 728,877 748,524 742,058 718,676 718,420 719,845 718,599 721,985 724,371 By major holder 6 Commercial banks 342,770 347,087 339,565 326,205 324,791 324,171 323,899 323,866 324,046 7 Finance companies 138,858 133,863 121,901 118,364 116,138 116,690 117,002 117,175 117,351 8 Credit unions 93,114 93,057 92,254 91,339 91,605 92,340 91,778 92,270 92,286 9 Retailers 44,154 44,822 44,030 39,553 37,824 37,438 37,219 38,791 38,778 10 Savings institutions 57,253 46,969 40,315 36,499 36,224 35,782 35,552 35,378 35,069 11 Gasoline companies 3,935 4,822 4,362 4,094 4,193 4,360 4,506 4,542 4,499 12 Pools of securitized assets2 .. 48,793 77,904 99,631 102,622 107,645 109,064 108,643 109,963 112,342 By major type of credit3 13 Automobile 292,060 285,050 263,108 258,449 258,665 257,442 258,104 259,128 260,870 14 Commercial banks 126,288 124,913 111,912 109,056 108,610 106,645 107,722 107,978 108,355 15 Finance companies 84,126 75,045 63,413 61,717 59,399 60,056 60,400 60,393 60,507 16 Pools of securitized assets 18,185 24,428 28,057 28,679 31,406 31,024 30,454 30,826 31,972 17 Revolving 210,310 235,056 255,895 242,708 243,315 245,092 244,661 247,051 248,543 18 Commercial banks 130,811 133,385 137,968 128,506 128,013 127,925 127,476 126,922 127,234 19 Retailers 39,583 40,003 39,352 34,989 33,245 32,844 32,617 34,167 34,148 2 2 0 1 G Po a o so ls l i o n f e s c e o c m ur p i a ti n z i e e d s assets2 2 3 3 , ,4 9 7 3 7 5 44 4, , 8 3 2 3 2 5 60 4 , , 1 3 3 6 9 2 6 4 1 , , 0 1 9 9 4 0 6 4 3 , , 1 80 9 1 3 6 4 5, , 7 3 8 6 4 0 65 4 , , 7 5 9 0 1 6 6 4 6 , , 5 9 4 8 2 5 6 4 8 , , 4 1 9 2 9 7 22 Other 226,507 228,418 223,055 217,519 216,440 217,311 215,834 215,806 214,958 23 Commercial banks 85,671 88,789 89,685 88,643 88,168 89,601 88,701 88,966 88,457 24 Finance companies 54,732 58,818 58,488 56,647 56,739 56,634 56,602 56,782 56,844 25 Retailers 4,571 4,819 4,678 4,564 4,579 4,594 4,602 4,624 4,630 26 Pools of securitized assets2 7,131 9,141 11,435 12,753 12,438 12,256 12,398 12,152 12,243 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. 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1 Percent per year except as noted Item 1989 1990 Mar. Apr. May June July Aug. Sept INTEREST RATES Commercial bankp' 1 48-month new car3 12.07 11.78 11.14 n.a. n.a. 9.52 n.a. n.a. 9.15 2 24-month personal 15.44 15.46 15.18 n.a. n.a. 14.28 n.a. n.a. 13.94 3 120-month mobile home 14.11 14.02 13.70 n.a. n.a. 12.82 n.a. n.a. 12.57 4 Credit card 18.02 18.17 18.23 n.a. n.a. 17.97 n.a. n.a. 17.66 Auto finance companies 5 New car 12.62 12.54 12.41 10.92 10.84 10.67 10.24 9.94 6 Used car 16.18 15.99 15.60 14.19 14.14 14.01 13.89 13.67 13.49 OTHER TERMS4 Maturity (months) 1 New car 54.2 54.6 55.1 54.3 54.5 54.7 54.4 54.4 53.6 8 Used car 46.6 46.0 47.2 48.0 47.8 47.9 48.0 48.0 47.9 Loan-to-value ratio 9 New car 10 Used car Amount financed (dollars) 11 New car 12,001 12,071 12,494 13,137 13,208 13,373 13,369 13,570 13,745 12 Used car 7,954 8,289 8,884 8,908 8,905 9,247 9,201 9,293 9,238 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. Digitized for FRA2.S DEaRta are available for only the second month of each quarter. 4. At auto finance companies. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A39 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1 Billions of dollars; quarterly data at seasonally adjusted annual rates 1990 1991 1992 Q4 Q1 Q2 Q3 Q4 Ql Q2 Nonfinancial sectors 1 Total net borrowing by 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 By 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 577.3 620.7 594.4 418.2 174.3 233.0 228.0 267.7 116.1 85.3 279.3 183.0 By instrument 6 Debt capital instruments 487.2 474.1 441.8 342.3 254.5 277.9 296.0 331.1 180.8 210.0 293.6 223.9 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 78.8 103.1 73.8 47.1 78.6 65.2 76.7 96.5 81.7 59.7 76.1 78.1 9 Mortgages 325.0 317.3 303.0 244.0 130.0 172.1 183.7 186.0 45.6 104.8 170.5 77.7 10 Home mortgages 235.3 241.8 245.3 219.4 142.2 162.3 153.0 158.1 122.4 135.1 203.4 137.0 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 13 Farm -6.4 -2.1 -1.5 -.1 -.8 -1.3 -.1 -.7 -2.5 .0 -1.1 2.7 14 Other debt instruments 90.1 146.6 152.6 75.8 -80.2 -44.9 -68.0 -63.3 -64.8 -124.7 -14.3 -40.9 15 Consumer credit 32.9 50.1 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 -34.1 -14.3 -15.9 -36.3 -7.0 12.6 -3.4 18 Other 45.7 43.6 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 58.4 20 Household 296.4 318.6 305.6 254.2 158.0 159.8 160.8 188.8 136.1 146.3 208.8 155.4 21 Nonfinancial business 197.8 253.1 225.6 115.6 -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 65.3 61.8 50.4 26.7 -23.6 7.9 13.2 9.8 -65.9 -51.5 -22.7 -67.6 24 Corporate 143.1 198.8 173.6 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 727.4 782.2 750.9 688.9 466.6 528.1 518.5 481.3 420.1 446.7 657.7 599.3 Financial sectors 31 Total net borrowing by financial sectors 259.0 211.4 220.1 187.1 139.2 296.8 108.9 103.1 144.3 200.5 108.7 217.5 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 87.2 91.7 69.1 19.7 -8.6 108.6 -45.7 -24.3 -12.0 47.8 -18.0 18.1 37 Corporate bonds 39.1 16.2 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 87.2 91.7 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 -.5 31.5 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 • January 1993 1.57—Continued 1990 1991 1992 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998877 11998888 11998899 11999900 11999911 Q4 Ql Q2 Q3 Q4 Ql Q2 All sectors 52 Total net borrowing, all sectors 986.4 993.6 971.0 876.0 605.8 824.9 627.4 584.4 564.4 647.1 766.4 816.9 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 125.2 126.3 125.5 102.9 151.2 193.4 129.2 179.7 126.4 169.5 56.6 115.7 56 Mortgages 325.4 317.5 303.0 244.3 130.6 172.8 183.9 185.8 46.5 106.2 171.4 77.9 57 Consumer credit 32.9 50.1 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 68.0 55.8 30.6 12.4 -64.2 -28.8 -66.9 -71.2 -39.1 -79.3 -1.5 11.6 External corporate equity funds raised in Unil ed States 61 Total net share 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 62 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 63 All other -63.2 -124.5 -104.2 -45.8 48.3 -57.0 14.3 53.3 52.7 72.9 82.0 60.3 64 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 65 Financial corporations 14.5 4.1 2.7 9.8 -.1 1.2 -6.7 4.7 -.4 2.0 6.0 2.9 66 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 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables F.2 through F.5. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A41 1.58 SUMMARY OF FINANCIAL TRANSACTIONS1 Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates 1990 1991 1992 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998877 11998888 11998899 11999900 11999911 Q4 Ql Q2 Q3 Q4 Ql Q2 NET LENDING IN CREDIT MARKETS2 1 Total net lending in credit markets 986.4 993.6 971.0 876.0 605.8 824.9 627.4 584.4 564.4 647.1 766.4 816.9 2 Private domestic nonfinancial sectors 237.4 226.2 209.6 203.8 21.4 54.8 49.0 190.8 -135.2 -18.8 86.2 65.2 3 Households 180.7 198.9 179.5 172.3 -14.1 7.9 12.0 174.4 -177.8 -65.1 93.6 62.0 4 Nonfarm noncorporate business -5.6 3.1 -.8 -1.4 -1.8 -1.9 -1.6 -2.0 -1.6 -2.1 -2.1 -2.5 5 Nonfinancial corporate business 18.5 5.7 12.9 6.6 21.1 13.3 -6.8 29.0 32.2 30.1 11.1 -1.5 6 State and local governments 43.9 18.6 17.9 26.2 16.3 35.5 45.4 -10.6 12.1 18.2 -16.5 7.2 1 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 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 9 Financial sectors 695.0 681.8 690.4 580.2 529.7 686.0 524.1 317.4 664.3 612.9 577.4 619.6 1 1 0 1 M Sp o o r n tg s a o g re e d p c o r o e l d s it agencies 1 2 4 7 2 . . 0 3 3 7 7 4 . . 1 9 12 - 5 .5 .8 1 1 5 6 0. . 3 4 13 1 8 4 . . 6 2 1 - 5 8 1 . . 4 6 1 2 4 7 1 . . 4 5 - 1 2 5 2 7 . . 3 1 1 3 3 3 5 . . 7 8 1 1 20 7 . . 1 8 1 9 1 3 5 . . 0 3 1 4 5 7 1 . . 9 2 12 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 13 Commercial banking 135.3 157.1 176.8 125.4 84.0 69.5 114.4 34.7 82.4 104.3 97.9 53.2 14 U.S. commercial banks 99.1 127.1 145.7 95.2 38.9 30.7 77.0 6.4 26.5 45.6 90.7 .1 15 Foreign banking offices 34.2 29.4 26.7 28.4 48.5 37.9 42.2 33.7 56.7 61.3 .9 53.8 16 Bank affiliates 2.0 -.1 2.8 -2.8 -1.5 -1.7 -4.7 -2.6 2.4 -1.1 6.4 -1.7 1/ Banks in U.S. possession .1 .7 1.6 4.5 -1.9 2.7 -.1 -2.8 -3.3 -1.5 .0 1.0 18 Private nonbank finance 365.8 402.2 395.7 279.9 261.8 484.8 182.7 152.0 364.4 348.3 238.0 357.6 19 Thrift 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 20 Savings and loan associations 93.5 87.4 -93.9 -143.9 -140.9 -177.9 -179.8 -144.0 -156.3 -83.3 -137.9 -78.4 21 Mutual savings banks 25.6 15.3 -4.8 -16.5 -15.5 -9.8 -11.7 -31.1 -30.8 11.5 7.6 -3.7 22 Credit unions 17.8 16.3 7.7 8.5 11.5 9.2 3.3 10.2 10.3 22.2 28.2 30.6 2i Insurance 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 Life insurance companies 91.7 103.8 93.1 94.4 83.2 73.4 112.9 132.8 73.8 13.2 80.6 93.3 25 Other insurance companies 39.5 29.2 29.7 26.5 34.7 28.8 32.7 37.0 36.8 32.1 33.1 22.2 26 Private pension funds -4.7 18.1 36.2 16.6 60.6 55.6 42.1 .7 110.5 89.2 -18.9 41.3 27 State and local government retirement funds ... 27.0 35.1 48.7 51.0 37.0 39.5 48.5 49.0 33.4 17.0 47.6 37.2 28 Finance n.e.c 75.4 96.9 278.9 243.3 191.3 466.2 134.7 97.4 286.7 246.5 197.7 215.0 29 Finance companies 38.2 49.2 69.3 41.6 -13.1 26.0 -18.5 -14.5 -5.2 -14.1 .8 -23.0 30 Mutual funds 2255..88 11.9 23.8 41.4 90.3 56.2 44.0 75.3 117.1 124.8 105.3 156.1 31 Money market funds 11..88 10.7 67.1 80.9 30.1 83.3 134.2 -68.9 1.1 53.9 61.8 -20.9 3 3 2 3 B Re ro a k l e e r s s t a a t n e d i n d v e e a s l t e m rs e nt trusts (REITs) -30 1 . . 6 0 -8. . 2 9 96. .5 3 3 - 4 .7 .9 4 - 9 .7 .0 2 - 4 2 1 . . 1 5 -5 -1 6 . . 2 9 6 - 6 .1 .8 13 - 5 .6 .8 5 - 0 .9 .5 -- 88 .. .. 77 11 6 - 0 .5 .0 34 Securitized credit obligation (SCOs) 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 RELATION OF LIABILITIES TO FINANCIAL ASSETS 35 Net flows through credit markets 986.4 993.6 971.0 876.0 605.8 824.9 627.4 584.4 564.4 647.1 766.4 816.9 Other financial sources 36 Official foreign exchange -9.7 4.0 24.8 2.0 -5.9 4.0 1.5 -4.8 -15.5 -5.0 3.5 -6.4 3 37 8 T L r if e e a s i u n r s y u r c a u n r c r e e n re cy se r a v n e d s special drawing rights 26. .5 0 25. . 3 5 2 4 8 . . 1 8 2 2 5 . . 5 7 22. . 0 0 2 8 3. . 7 2 - 1 1 9 . . 2 9 29. . 4 4 19 . . 4 4 19 . . 5 2 21. . 2 1 24. . 6 3 39 Pension fund reserves 104.5 193.6 221.4 186.8 268.1 253.0 284.1 193.9 339.6 254.7 112.7 225.5 40 Interbank claims 34.8 2.9 -16.5 34.2 -2.1 -18.5 4.5 -81.6 97.9 -29.0 45.6 -12.6 41 Deposits at financial institutions 141.1 259.9 290.0 96.8 58.0 233.2 244.8 -75.4 27.3 35.3 152.0 -12.0 42 Checkable deposits and currency 3.9 43.2 6.1 44.2 75.8 59.5 76.2 7.9 104.5 114.4 89.4 97.6 43 Small time and savings deposits 76.5 120.8 96.7 59.9 16.7 69.1 97.3 -1.1 -42.4 13.0 -13.7 -77.4 44 Large time deposits 50.6 53.6 17.6 -66.7 -60.9 -69.0 15.1 -63.0 -78.1 -117.4 -82.0 -106.3 45 Money market fund shares 24.0 21.9 90.1 70.3 41.3 57.6 193.0 -58.7 4.0 26.8 106.1 -38.3 46 Security repurchase agreements -10.9 23.5 78.3 -23.5 -16.4 97.9 -160.7 43.1 36.3 16.0 15.4 96.5 47 Foreign deposits -3.1 -3.1 1.1 12.6 1.5 18.2 24.0 -3.6 3.0 -17.5 36.8 16.0 48 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 49 Corporate 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 50 Security credit -27.4 3.0 15.6 3.5 51.4 36.5 -17.5 20.1 82.4 120.7 -70.0 -47.7 51 Trade debt 57.7 89.2 60.0 44.1 11.2 -13.1 -36.7 41.8 48.2 -8.5 70.1 58.8 52 Taxes payable 5.4 5.3 2.0 -.5 -9.1 -3.7 -34.8 -11.5 13.0 -3.3 -2.9 1.4 53 Noncorporate proprietors equity -60.9 -31.2 -32.5 -39.3 -1.3 -22.2 -21.3 -34.1 44.9 5.1 -20.4 30.4 54 Miscellaneous 241.2 222.3 269.9 120.5 157.0 -34.7 273.7 84.9 41.3 228.3 82.8 204.2 55 Total financial sources 1,506.7 1,650.2 1,772.7 1,374.3 1,354.0 1,319.6 1,456.9 926.3 1,498.6 1,534.1 1,432.9 1,566.9 Floats not included in assets (-) 56 U.S. government checking deposits .0 1.6 8.4 3.3 -13.1 -8.0 -18.8 15.6 23.9 -73.1 4.4 -10.8 57 Other checkable deposits .4 .8 -3.2 2.5 2.0 7.7 13.3 3.0 -2.1 -6.1 -13.3 -17.5 58 Trade credit -8.5 -.9 .6 21.5 19.4 54.6 13.4 41.2 27.8 -4.8 27.7 1.2 Liabilities not identified as assets (-) 59 Treasury currency -.1 -.1 -.2 .2 -.6 1.5 -1.9 -.3 -.2 -.1 -.4 -.1 60 Interbank claims -4.0 -3.0 -4.4 1.6 26.2 -14.9 55.3 20.8 28.4 .2 13.4 -13.8 61 Security repurchase agreements -21.2 -29.8 23.9 -34.8 9.7 45.7 -115.4 76.2 36.9 41.1 -23.5 78.2 67 Taxes payable 6.7 6.3 2.3 6.5 7.4 14.9 -14.4 2.0 23.4 18.5 -16.7 16.3 63 Miscellaneous 10.0 4.4 -95.6 -13.8 -26.0 -112.2 -111.4 8.4 -195.4 194.3 -148.9 -128.3 64 Totals identified to sectors as assets 1,523.4 1,670.7 1,841.0 1,387.5 1,329.1 1,330.2 1,636.7 759.4 1,556.0 1,364.1 1,590.2 1,641.7 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical 2. Excludes corporate equities and mutual fund shares, release, tables F.6 and F.7. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • January 1993 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 1990 1991 1992 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998888 11998899 11999900 11999911 04 Ql Q2 Q3 Q4 Ql Q2 Nonfinancial sectors 1 Total credit market debt owed by 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 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 7,211.4 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 852.2 926.1 973.2 1.051.8 973.2 992.3 1,016.5 1,036.9 1.051.8 1,070.8 1,090.4 9 Mortgages 3,327.3 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 2,257.5 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 2,092.5 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 742.1 791.8 809.3 796.7 809.3 785.3 786.7 785.9 796.7 775.7 775.5 16 Bank loans n.e.c 710.6 760.7 758.0 724.6 758.0 748.3 742.0 734.1 724.6 712.5 708.1 17 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 554.1 598.4 642.6 624.1 642.6 631.5 632.6 629.8 624.1 621.6 625.3 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 3,177.3 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 1,127.1 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 244.6 254.8 278.6 292.7 278.6 291.3 277.6 282.2 292.7 282.3 300.6 26 Bonds 83.1 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 90.1 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 50 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 3,9%. 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 7%.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 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables L.2 through L.4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A43 1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1 Billions of dollars except as noted, end of period 1990 1991 1992 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998888 11998899 11999900 11999911 Q4 Ql Q2 Q3 Q4 Ql Q2 CREDIT MARKET DEBT OUTSTANDING2 1 Total credit market assets 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 2 Private domestic nonfinancial sectors 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 3 Households 1,485.1 1,710.1 1,882.3 1,860.8 1,882.3 1,875.1 1,881.7 1,875.3 1,860.8 1,859.2 1,837.2 4 Nonfarm noncorporate business 57.2 56.4 55.0 53.2 55.0 53.9 53.4 52.9 53.2 51.9 51.3 5 Nonfinancial corporate business 167.4 180.3 186.9 208.1 186.9 174.6 189.9 190.1 208.1 199.9 208.6 6 State and local governments 475.8 493.7 519.9 536.2 519.9 530.6 528.8 530.0 536.2 531.3 534.2 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 Foreign 653.2 734.2 792.4 848.8 792.4 797.1 810.0 819.3 848.8 871.1 907.2 9 Financial sectors 8,592.0 9,295.1 9,888.3 10,418.0 9,888.3 9,993.0 10,092.7 10,253.3 10,418.0 10,537.3 10,713.3 10 Sponsored credit agencies 367.7 367.2 383.6 397.7 383.6 388.5 382.7 389.5 397.7 419.9 431.0 11 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 12 Monetary authority 240.6 233.3 241.4 272.5 241.4 247.3 253.7 264.7 272.5 271.8 282.6 13 Commercial banking 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 14 U.S. commercial banks 2,231.9 2,368.4 2,463.6 2,502.5 2,463.6 2,470.8 2,480.0 2,488.7 2,502.5 2,513.7 2,521.5 15 Foreign banking offices 215.6 242.3 270.8 319.2 270.8 275.6 284.4 297.5 319.2 313.4 327.0 16 Bank affiliates 13.4 16.2 13.4 11.9 13.4 12.3 11.3 11.6 11.9 13.6 12.8 17 Banks in U.S. possession 15.4 17.1 21.6 19.7 21.6 21.6 20.9 20.0 19.7 19.7 19.9 18 Private nonbank finance 4,762.1 5,179.7 5,474.1 5,735.9 5,474.1 5,526.8 5,571.3 5,656.5 5,735.9 5,803.0 5,899.4 19 Thrift 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 20 Savings and loan associations 1,184.2 1,088.9 945.1 804.2 945.1 901.3 866.3 826.1 804.2 771.1 752.4 21 Mutual savings banks 240.6 241.1 227.1 211.5 227.1 224.1 216.4 208.7 211.5 213.4 212.5 22 Credit unions 147.2 154.9 163.4 174.9 163.4 162.3 165.7 170.2 174.9 180.0 188.4 23 Insurance 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 Life insurance companies 920.0 1,013.1 1,116.5 1,199.6 1,116.5 1,148.5 1,183.7 1,201.4 1,199.6 1,224.3 1,250.0 25 Other insurance companies 287.9 317.5 344.0 378.7 344.0 352.2 361.4 370.7 378.7 387.0 392.5 26 Private pension funds 358.5 394.7 431.3 491.9 431.3 441.8 442.0 469.6 491.9 487.2 497.5 27 State and local government retirement funds . 366.2 414.9 437.4 474.3 437.4 449.5 461.7 470.1 474.3 486.2 495.5 28 Finance n.e.c 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 29 Finance companies 559.2 617.1 658.7 645.6 658.7 649.4 651.7 647.4 645.6 641.0 641.6 30 Mutual funds 283.4 307.2 360.2 450.5 360.2 374.6 394.4 421.4 450.5 480.3 520.4 31 Money market funds 224.7 291.8 372.7 402.8 372.7 411.4 389.9 389.5 402.8 423.1 413.5 32 Real estate investment trusts (REITs) 7.8 8.4 7.7 7.0 7.7 7.4 7.4 7.2 7.0 6.8 6.7 33 Brokers and dealers 46.7 142.9 177.9 226.9 177.9 163.6 180.4 214.3 226.9 228.9 243.9 34 Securitized credit obligation (SCOs) issuers .. 135.7 187.1 232.3 268.0 232.3 240.6 250.3 259.9 268.0 273.6 284.4 RELATION OF LIABILITIES TO FINANCIAL ASSETS 35 Total credit market debt 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 Other liabilities 36 Official foreign exchange 27.1 53.6 61.3 55.4 61.3 56.6 53.6 52.9 55.4 52.7 54.4 37 Treasury currency and special drawing rights certificates 19.8 23.8 26.3 26.3 26.3 26.0 26.1 26.2 26.3 26.3 26.4 38 Life insurance reserves 325.5 354.3 380.0 402.0 380.0 385.0 392.3 397.2 402.0 407.3 413.4 39 Pension fund reserves 2,755.0 3,210.5 3,303.0 3,882.3 3,303.0 3,520.6 3,555.8 3,720.8 3,882.3 3,889.4 3,962.7 40 Interbank claims 46.9 32.4 64.0 63.6 64.0 57.8 34.0 58.4 63.6 63.1 58.1 41 Deposits at financial institutions 4,354.7 4,644.6 4,741.4 4,799.4 4,741.4 4,776.4 4,765.7 4,769.5 4,799.4 4,812.9 4,817.9 42 Checkable deposits and currency 882.8 888.6 932.8 1,008.5 932.8 905.1 933.1 948.3 1,008.5 984.8 1,033.9 43 Small time and savings deposits 2,169.2 2,265.4 2,325.3 2,342.0 2,325.3 2,355.3 2,351.5 2,339.7 2,342.0 2,344.8 2,321.6 44 Large time deposits 596.9 615.4 548.7 487.9 548.7 553.1 532.6 517.1 487.9 468.6 437.3 45 Money market fund shares 338.0 428.1 498.4 539.6 498.4 551.7 532.8 533.1 539.6 571.0 557.2 46 Security repurchase agreements 325.0 403.2 379.7 363.4 379.7 348.6 354.0 368.9 363.4 376.4 396.7 47 Foreign deposits 42.8 43.9 56.6 58.0 56.6 62.6 61.7 62.4 58.0 67.2 71.2 48 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 49 Security credit 118.3 133.9 137.4 188.9 137.4 132.5 137.5 158.1 188.9 195.1 183.3 50 Trade debt 838.4 903.9 938.0 951.6 938.0 914.1 920.2 946.3 951.6 950.3 960.3 51 Taxes payable 79.8 81.8 81.4 72.2 81.4 75.1 65.8 71.8 72.2 73.9 67.2 52 Miscellaneous 2,312.0 2,508.3 2,678.8 2,791.7 2,678.8 2,700.3 2,707.9 2,743.2 2,791.7 2,789.2 2,817.9 53 Total liabilities 22,999.5 25,188.3 26,577.2 28,217.1 26,577.2 26,975.8 27,151.8 27,661.5 28,217.1 28,420.4 28,798.6 Financial assets not included in liabilities (+) 54 Gold and special drawing rights 40.0 40.3 41.3 41.6 41.3 40.7 40.7 41.1 41.6 41.3 42.0 55 Corporate 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 56 Household equity in noncorporate business 2,373.1 2,524.9 2,449.4 2,372.6 2,449.4 2,478.4 2,509.5 2,496.0 2,372.6 2,384.5 2,370.1 Floats not included in assets (-) 57 U.S. government checking deposits 5.9 6.1 15.0 4.7 15.0 5.2 8.3 19.8 4.7 .3 -.2 58 Other checkable deposits 29.6 26.5 28.9 30.9 28.9 26.7 29.9 23.6 30.9 22.0 20.1 59 Trade credit -164.3 -159.7 -148.0 -123.2 -148.0 -147.0 -146.7 -143.0 -123.2 -119.1 -131.1 Liabilities not identified as assets (-) 60 Treasury currency -4.1 -4.3 -4.1 -4.8 -4.1 -4.6 -4.7 -4.7 -4.8 -4.9 -4.9 61 Interbank claims -28.5 -31.0 -32.0 -4.2 -32.0 -15.5 -9.9 -4.7 -4.2 -1.8 -3.6 62 Security repurchase agreements -12.4 11.5 -23.3 -13.7 -23.3 -39.6 -25.8 -10.6 -13.7 -6.4 8.8 63 Taxes payable 21.4 20.6 21.8 18.8 21.8 21.4 11.7 17.5 18.8 17.0 9.6 64 Miscellaneous -134.6 -253.3 -249.7 -307.2 -249.7 -260.9 -242.8 -301.8 -307.2 -304.4 -321.5 65 Totals identified to sectors as assets 28,841.1 31,956.8 32,966.0 35,659.8 32,966.0 33,956.5 34,186.7 34,941.0 35,659.8 35,746.0 36,199.2 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical 2. Excludes corporate equities and mutual fund shares, release, tables L.6 through L.7. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • January 1993 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures Monthly data seasonally adjusted, 1987=100, except as noted 1992 MMeeaassuurree 11998899 11999900 11999911 Feb. Mar. Apr. May June July Aug. Sept. Oct. 1 Industrial production1 108.1 109.2 107.1 107.2 107.6 108.1 108.9 108.5 109.4r 109.0 108.7 109.0 Market groupings 2 Products, total 108.6 110.1 108.1 108.1 108.5 109.0 109.7 109.0 109.6r 109.6 109.4 109.9 i Final, total 109.1 110.9 109.6 109.4 109.8 110.6 111.4 110.5 111.0 111.2 111.0 111.7 4 Consumer goods 106.7 107.3 107.5 108.8 109.3 110.1 110.8 109.6 110.4r 110.4 110.3 110.8 5 Equipment 112.3 115.5 112.2 110.2 110.4 111.3 112.3 111.6 111.8r 112.2 111.9 112.8 6 Intermediate 106.8 107.7 103.4 104.0 104.4 103.9 104.4 104.4 105. r 104.6 104.3 104.3 7 Materials 107.4 107.8 105.5 105.8 106.1 106.8 107.7 107.6 109.0r 108.0 107.7 107.7 Industry groupings 8 Manufacturing 108.9 109.9 107.4 108.1 108.5 109.0 109.9 109.6 110.2r 109.9 109.5 109.9 9 Capacity utilization, manufacturing (percent)2 83.9 82.3 78.2 77.4 77.5 77.7 78.2 77.8 78. lr 77.8 77.3 77.4 10 Construction contracts3 105.2 95.3 89.5 100.0 96.0 93.0 86.0 90.0 89.0 90.0 89.0 n.a. 11 Nonagricultural employment, total4 106.0 107.5 106.0 105.8 105.9 106.0 106.2 106.1 106.3 106.2 106.1 106.1 12 Goods-producing, total 102.5 101.0 96.4 95.2 95.2 95.2 95.3 95.0 94.9 94.6 94.3 94.2 13 Manufacturing, total 102.2 100.5 97.0 96.1 96.1 96.1 96.1 95.9 95.9 95.4 95.2 94.9 14 Manufacturing, production worker.... 102.3 100.1 96.1 95.6 95.7 95.7 95.7 95.4 95.5 94.9 94.6 94.4 15 Service-producing 107.1 109.5 109.0 109.2 109.3 109.5 109.6 109.6 109.9 109.9 109.8 109.9 lb Personal income, total 115.2 122.7 127.0 131.2 131.8 131.9 132.4 132.5 132.8 132.6 133.5 11 Wages and salary disbursements 114.4 121.3 124.4 127.6 128.0 127.8 128.6 128.5 128.7 129.5 129.3 n.a. 18 Manufacturing 110.6 113.5 113.6 114.5 114.6 115.0 115.5 115.1 115.3 115.1 115.2 n.a. 19 Disposable personal income 115.1 122.9 128.0 132.6 133.8 133.8 134.2 134.4 134.5r 134.1 135.1 n.a. 20 Retail sales6 113.5 118.7 119.8 124.6 123.1 123.5 124.1 124.0 125.4 125.5 126.2 127.3 Prices7 21 Consumer (1982-84=100) 124.0 130.7 136.2 138.6 139.3 139.5 139.7 140.2 140.5 140.9 141.3 141.8 22 Producer finished goods (1982=100) 113.6 119.2 121.7 122.1 122.2 122.4 123.2 123.9r 123.7 123.5 123.3 124.3 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 Mar. Apr. May June July Aug. Sept. Oct. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 188,601 190,216 191,883 193,036 193,168 193,295 193,431 193,588 193,749 193,893 194,051 2 Labor force (including Armed Forces)1 126,077 126,954 127,421 128,604 128,830 129,148 129,525 129,498 129,396 129,219 128,879 3 Civilian labor force 123,869 124,787 125,303 126,590 126,830 127,160 127,549 127,532 127,437 127,273 126,959 Employment 4 Nonagncultural industries 114,142 114,728 114,644 114,155 114,465 114,478 114,322 114,568 114,519 114,459 114,465 5 Agriculture 3,199 3,186 3,233 3,194 3,209 3,178 3,252 3,204 3,218 3,242 3,160 Unemployment 6 Number 6,528 6,874 8,426 9,242 9,155 9,504 9,975 9,760 9,700 9,572 9,334 7 Rate (percent of civilian labor force) 5.3 5.5 6.7 7.3 7.2 7.5 7.8 7.7 7.6 7.5 7.4 8 Not in labor force 62,524 63,262 64,462 64,432 64,338 64,147 63,906 64,090 64,353 64,674 65,172 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 108,329 109,872 108,310 108,200 108,377 108,496 108,423 108,594 108,485 108,413 108,440 10 Manufacturing 19,442 19,117 18,455 18,278 18,279 18,275 18,236 18,242 18,145 18,107 18,051 11 Mining 693 710 691 651 646 641 634 633 626 625 625 12 Contract construction 5,187 5,133 4,685 4,603 4,605 4,632 4,600 4,584 4,591 4,575 4,595 13 Transportation and public utilities 5,644 5,808 5,772 5,754 5,746 5,745 5,745 5,742 5,729 5,736 5,738 14 Trade 25,770 25,877 25,328 25,089 25,170 25,143 25,144 25,156 25,070 25,062 25,059 15 Finance 6,695 6,729 6,678 6,675 6,682 6,681 6,672 6,660 6,661 6,661 6,675 16 Service 27,120 28,130 28,323 28,643 28,707 28,833 28,854 28,971 28,981 29,035 29,124 17 Government 17,779 18,304 18,380 18,507 18,542 18,546 18,538 18,606 18,682 18,612 18,573 1. Persons sixteen years of age and older. Monthly figures are based on sample pay for, the pay period that includes the twelfth day of the month; excludes data collected during the calendar week that contains the twelfth day; annual data proprietors, self-employed persons, household and unpaid family workers, and are averages of monthly figures. By definition, seasonality does not exist in members of the armed forces. Data are adjusted to the March 1984 benchmark, population figures. and only seasonally adjusted data are available at this time. 2. Includes self-employed, unpaid family, and domestic service workers. SOURCE. Based on data from 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 • January 1993 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1991 1992 1991 1992 1991 1992 Q4 Ql Q2 Q3r Q4 Ql Q2 Q3 04 Ql Q2 Q3r Output (1987=100) Capacity (percent of 1987 output) Capacity utilization rate (percent) 1 Total industry 107.9 107.1 108.5 109.0 136.2 137.0 137.7 138.4 79.3 78.2 78.8 78.8 2 Manufacturing 108.6 108.0 109.5 109.9 138.9 139.7 140.6 141.4 78.2 77.3 77.9 77.7 3 Primary processing 104.1 104.0 105.4 106.3 128.8 129.3 129.6 129.9 80.8 80.5 81.3 81.8 4 Advanced processing 110.7 109.9 111.4 111.5 143.5 144.6 145.6 146.7 77.1 76.0 76.5 76.1 5 Durable goods 107.7 106.6 108.4 108.7 142.8 143.7 144.4 145.2 75.4 74.2 75.0 74.9 6 Lumber and products 95.1 98.5 96.7 98.7 125.7 125.9 126.1 126.3 75.7 78.2 76.7 78.2 7 Primary metals 102.5 102.2 101.7 103.9 129.3 129.1 128.3 127.5 79.2 79.2 79.2 81.5 8 Iron and steel 103.2 103.8 101.6 104.6 134.5 134.1 132.7 131.2 76.7 77.4 76.6 79.7 9 Nonferrous 101.4 100.0 101.7 103.0 121.9 122.1 122.2 122.3 83.2 81.9 83.3 84.2 10 Nonelectrical machinery 122.7 122.1 125.7 128.8 162.8 164.3 165.9 167.4 75.4 74.3 75.8 77.0 11 Electrical machinery 110.4 110.5 111.8 112.5 146.6 147.9 149.1 150.4 75.3 74.7 75.0 74.8 12 Motor vehicles and parts 97.0 91.7 100.5 98.0 135.6 136.2 136.7 137.2 71.5 67.3 73.5 7711..44 13 Aerospace and miscellaneous transportation equipment 102.8 99.3 96.8 94.2 139.6 140.4 140.9 141.5 73.7 70.8 68.7 66.6 14 Nondurable goods 109.7 109.8 110.9 111.3 133.8 134.8 135.6 136.5 82.0 81.5 81.7 81.6 15 Textile mill products 104.1 104.3 106.2 106.9 118.3 118.8 119.2 119.7 88.0 87.9 89.0 89.3 16 Paper and products 107.4 105.8 106.7 107.6 118.7 119.3 119.9 120.5 90.5 88.7 89.0 89.3 17 Chemicals and products 113.0 113.6 116.8 117.7 142.3 143.4 144.3 145.1 79.4 79.2 81.0 8811..11 18 126.2 124.4 129.7 146.1 148 7 150 5 86 4 86 2 19 Petroleum products 107.1 107.7 109.2 107.0 121.4 121.4 121.5 121.6 88.2 88.7 89.9 88.0 20 99.7 97.9 98.9 99.0 114.7 114.7 114.7 114.8 87.0 85.3 86.2 86.3 21 Utilities 109.4 107.0 107.4 109.8 129.2 129.5 129.8 130.1 84.7 82.6 82.7 84.4 22 Electric 111.6 109.7 110.3 113.7 125.2 125.6 126.0 126.4 89.1 87.3 87.6 90.0 Previous cycle2 Latest cycle3 1991 199 2 High Low High Low Oct. Mar. Apr. May June July1 Aug/ Sept/ Oct.p Capacity utilization rate (percent) 1 Total industry 89.2 72.6 87.3 71.8 79.8 78.4 78.7 79.1 78.6 79.1 78.7 78.4 78.5 2 Manufacturing 88.9 70.8 87.3 70.0 78.7 77.5 77.7 78.2 77.8 78.1 77.8 77.3 77.4 3 Primary processing 92.2 68.9 89.7 66.8 81.4 80.8 81.1 81.5 81.4 82.7 81.6 81.2 81.2 4 Advanced processing 87.5 72.0 86.3 71.4 77.6 76.1 76.3 76.8 76.3 76.2 76.2 75.7 75.9 5 Durable goods 88.8 68.5 86.9 65.0 75.9 74.3 74.6 75.5 75.0 75.2 75.1 74.3 74.7 6 Lumber and products 90.1 62.2 87.6 60.9 74.6 78.8 77.1 77.2 75.6 79.1 78.2 77.3 77.9 7 Primary metals 100.6 66.2 102.4 46.8 79.4 78.7 78.5 79.5 79.7 82.6 81.8 80.1 80.9 8 Iron and steel 105.8 66.6 110.4 38.3 76.2 76.7 75.8 77.0 77.0 80.8 79.5 78.7 79.4 9 Nonferrous 92.9 61.3 90.5 62.2 84.5 81.8 82.6 83.3 83.9 85.4 85.2 82.2 83.1 10 Nonelectrical machinery 96.4 74.5 92.1 64.9 76.1 74.5 75.1 76.4 76.0 76.6 77.2 77.1 77.6 11 Electrical machinery 87.8 63.8 89.4 71.1 75.1 74.8 74.7 75.3 75.0 75.1 75.2 74.2 74.1 12 Motor vehicles and parts 93.4 51.1 93.0 44.5 74.2 69.1 72.2 75.1 73.3 7711..33 7722..55 7700..66 7733..66 13 Aerospace and miscellaneous transportation equipment. 77.0 66.6 81.1 66.9 74.8 70.2 69.2 68.7 68.2 67.7 66.6 65.4 64.9 14 Nondurable goods 87.9 71.8 87.0 76.9 82.4 81.7 81.8 81.8 81.6 82.0 81.4 81.3 81.1 15 Textile mill products 92.0 60.4 91.7 73.8 89.2 88.5 89.3 89.6 88.2 89.6 89.3 89.0 87.5 16 Paper and products 96.9 69.0 94.2 82.0 92.1 88.5 89.3 88.3 89.3 91.1 87.5 89.3 88.1 17 Chemicals and products 87.9 69.9 85.1 70.1 80.0 79.9 80.4 81.1 81.3 81.5 81.1 80.8 80.8 18 Plastics materials 102.0 50.6 90.9 63.4 89.5 85.0 85.4 87.3 85.9 89.8 86.0 85.6 85.6 19 Petroleum products 96.7 81.1 89.5 68.2 87.3 90.3 90.8 89.3 89.6 89.8 85.8 88.4 91.2 20 94.4 88.4 96.6 80.6 87.9 84.9 86.3 86.9 85.4 87.6 86.1 85.1 85.5 21 Utilities 95.6 82.5 88.3 76.2 84.8 83.1 83.4 82.7 82.1 84.1 83.8 85.4 84.9 22 Electric 99.0 82.7 88.3 78.7 89.7 88.1 88.2 87.5 87.0 89.5 89.2 91.2 90.7 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Julyr Aug.r Sept.r OOcctt..PP Index (1987 = 100) MAJOR MARKETS 1 Total index 100.0 107.1 108.4 108.1 107.4 106.6 107.2 107.6 108.1 108.9 108.5 109.4 109.0 108.7 109.0 2 Products 60.8 108.1 109.0 109.0 108.4 107.5 108.1 108.5 109.0 109.7 109.0 109.6 109.6 109.4 109.9 3 Final products 46.0 109.6 110.6 110.6 109.9 108.7 109.4 109.8 110.6 111.4 110.5 111.0 111.2 111.0 111.7 4 Consumer goods, total 26.0 107.5 109.7 110.0 109.1 108.1 108.8 109.3 110.1 110.8 109.6 110.4 110.4 110.3 110.8 5 Durable consumer goods 5.6 102.3 107.5 106.0 104.6 101.3 105.3 106.2 107.9 111.1 109.2 108.6 109.3 107.0 109.1 6 Automotive products 2.5 97.8 106.7 103.6 101.3 94.2 101.6 103.6 106.5 110.6 108.0 106.6 106.8 104.7 109.7 7 Autos and trucks 1.5 90.2 105.1 99.0 96.7 84.3 94.3 95.7 102.5 107.8 104.0 100.5 100.6 98.2 105.9 8 Autos, consumer .9 84.6 92.6 89.8 88.2 79.1 84.8 81.9 93.1 98.6 97.6 92.3 87.2 88.1 88.5 9 Trucks, consumer .6 99.6 126.1 114.5 111.0 93.0 110.2 118.8 118.3 123.3 114.8 114.3 123.1 115.1 135.1 10 Auto parts and allied goods... 1.0 109.3 109.1 110.5 108.2 109.1 112.6 115.5 112.5 114.8 114.0 115.7 116.2 114.6 115.4 11 Other 3.1 105.8 108.1 108.0 107.2 106.9 108.3 108.3 109.1 111.5 110.2 110.3 111.2 108.8 108.6 12 Appliances, AJC, and TV .8 99.5 102.1 102.3 98.9 99.6 102.9 103.5 103.4 107.4 106.2 102.3 110.6 108.4 104.8 N Carpeting and furniture .9 99.4 101.8 101.6 101.5 101.1 102.4 102.5 104.4 105.9 103.2 103.8 104.4 101.0 102.0 14 Miscellaneous home goods ... 1.4 113.4 115.6 115.2 115.5 114.7 115.0 114.7 115.2 117.3 116.9 118.8 115.9 114.1 114.9 15 Nondurable consumer goods 20.4 109.0 110.3 111.1 110.3 110.0 109.8 110.2 110.7 110.7 109.7 110.8 110.7 111.2 111.3 16 Foods and tobacco 9.1 106.7 107.8 108.1 107.0 107.3 107.4 107.8 107.6 107.7 107.2 108.6 108.7 108.4 108.5 17 Clothing 2.6 93.5 96.3 96.5 96.2 95.0 95.2 95.1 95.3 96.4 95.5 96.8 95.5 96.0 95.2 18 Chemical products 3.5 115.8 117.0 117.9 118.0 118.1 118.3 119.4 120.8 121.4 121.6 121.5 122.0 122.4 122.3 19 Paper products 2.5 123.6 125.6 126.4 126.8 126.8 124.7 124.6 125.1 124.3 121.7 121.9 122.1 123.8 124.6 20 Energy 2.7 108.5 108.5 112.0 109.3 106.8 106.4 107.0 108.9 107.2 104.8 107.4 106.5 108.3 109.3 21 Fuels .7 103.5 103.5 103.6 104.3 103.8 103.5 103.7 105.1 104.0 104.4 105.3 99.0 103.5 108.4 22 Residential utilities 2.0 110.4 110.3 115.1 111.2 108.0 107.5 108.2 110.3 108.4 105.0 108.2 109.3 110.1 109.7 23 Equipment 20.0 112.2 111.9 111.4 110.9 109.4 110.2 110.4 111.3 112.3 111.6 111.8 112.2 111.9 112.8 24 Business equipment 13.9 121.5 122.3 121.8 121.4 119.9 121.0 121.5 123.0 124.5 124.1 124.4 125.5 125.4 126.7 25 Information processing and related .. 5.6 131.5 131.7 133.4 134.0 134.1 134.6 136.0 137.9 139.2 140.4 141.9 143.4 144.6 146.6 26 Office and computing 1.9 155.5 156.0 157.8 159.1 160.6 162.4 164.9 168.2 170.5 174.0 178.0 182.0 185.5 188.5 27 Industrial 4.0 108.0 106.8 104.2 102.3 100.7 101.3 101.3 101.7 103.4 102.9 103.4 102.5 102.4 102.7 28 Transit 2.5 126.8 133.1 130.5 129.5 124.2 129.2 128.9 131.7 133.3 131.8 128.7 131.5 127.7 130.1 29 Autos and trucks 1.2 88.6 101.1 96.5 96.1 84.9 94.7 95.0 101.3 105.6 101.7 98.1 101.3 99.1 105.6 30 Other 1.9 113.6 113.6 113:8 114.1 113.1 112.2 112.2 113.2 115.0 111.5 112.2 113.9 114.3 114.7 31 Defense and space equipment 5.4 91.1 89.1 88.8 88.1 86.7 86.2 85.6 84.7 84.2 83.6 82.7 81.7 81.0 80.1 32 Oil and gas well drilling .6 93.3 79.0 78.1 75.8 71.8 73.9 76.2 79.2 79.2 74.6 78.6 75.0 74.4 80.2 33 Manufactured homes .2 85.5 86.3 87.0 87.9 98.4 99.7 98.7 100.7 100.3 97.1 112.0 106.1 111.2 112.0 34 Intermediate products, total 14.7 103.4 104.1 103.9 103.8 103.9 104.0 104.4 103.9 104.4 104.4 105.1 104.6 104.3 104.3 35 Construction supplies 6.0 96.0 95.4 95.9 95.0 95.5 96.0 96.7 96.5 97.8 97.2 98.6 98.4 97.0 97.0 36 Business supplies 8.7 108.4 110.1 109.4 110.0 109.9 109.6 109.7 109.0 109.0 109.4 109.7 108.8 109.4 109.4 37 Materials 39.2 105.5 107.4 106.6 105.8 105.2 105.8 106.1 106.8 107.7 107.6 109.0 108.0 107.7 107.7 38 Durable goods materials 19.4 107.1 108.8 108.6 108.1 107.0 108.1 108.3 108.7 110.4 110.2 111.2 110.9 109.7 109.8 39 Durable consumer parts 4.2 96.4 101.6 100.5 97.0 95.3 97.1 97.9 99.3 102.5 102.9 101.8 103.4 101.1 100.8 40 Equipment parts 7.3 114.4 113.6 113.7 114.2 114.1 115.2 115.1 114.7 116.2 116.2 117.5 117.0 116.4 116.5 41 Other 7.9 106.0 108.2 108.3 108.4 106.7 107.5 107.5 108.1 109.2 108.7 110.2 109.2 108.1 108.5 42 Basic metal materials 2.8 106.0 107.7 108.1 108.1 105.1 107.3 106.3 106.3 108.3 107.7 111.5 110.9 108.8 109.6 43 Nondurable goods materials 9.0 105.9 109.6 107.7 107.1 107.3 107.1 108.9 109.4 109.7 110.4 111.7 110.2 110.5 110.6 44 Textile materials 1.2 97.0 101.8 99.9 98.5 98.9 101.5 102.0 103.2 102.9 102.3 103.9 102.9 103.9 102.1 45 Pulp and paper materials 1.9 106.9 112.0 108.6 109.6 107.4 106.8 107.8 109.2 107.8 110.8 111.8 108.2 112.0 110.3 46 Chemical materials 3.8 106.1 109.9 108.3 107.0 107.6 106.6 109.3 109.9 111.2 110.9 113.4 112.0 111.3 113.0 47 Other 2.1 109.7 111.2 110.1 109.7 111.2 111.2 112.7 112.2 112.4 113.4 112.8 112.8 111.3 111.2 48 Energy materials 10.9 102.3 103.1 102.2 100.4 100.4 100.5 100.1 101.3 101.3 100.6 102.9 101.1 101.8 101.3 49 Primary energy 7.2 102.4 102.8 100.9 100.4 100.5 100.6 98.2 99.8 99.7 99.6 102.3 101.3 101.6 100.7 50 Converted fuel materials 3.7 102.0 103.8 104.5 100.5 100.2 100.4 103.8 104.1 104.3 102.6 104.1 100.7 102.2 102.4 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.3 107.6 108.5 108.3 107.7 107.3 107.6 107.9 108.3 109.0 108.6 109.6 109.2 109.0 109.1 52 Total excluding motor vehicles and parts... 95.3 107.9 108.8 108.7 108.0 107.6 107.8 108.2 108.6 109.2 108.8 109.9 109.4 109.3 109.4 53 Total excluding office and computing machines 97.5 105.8 107.2 106.8 106.1 105.3 105.8 106.1 106.6 107.4 106.8 107.6 107.1 106.8 107.0 54 Consumer goods excluding autos and trucks 24.5 108.6 109.9 110.7 109.8 109.6 109.7 110.2 110.6 110.9 109.9 111.0 111.0 111.0 111.1 55 Consumer goods excluding energy 23.3 107.4 109.8 109.8 109.1 108.3 109.1 109.6 110.3 111.2 110.1 110.7 110.9 110.5 111.0 56 Business equipment excluding autos and trucks 12.7 124.8 124.4 124.3 123.8 123.3 123.6 124.1 125.2 126.4 126.3 127.0 127.9 127.9 128.8 57 Business equipment excluding office and computing equipment 12.0 116.0 116.9 116.0 115.3 113.3 114.3 114.5 115.7 117.1 116.1 115.8 116.4 115.6 116.7 58 Materials excluding energy 28.4 106.7 109.1 108.3 107.8 107.1 107.8 108.5 108.9 110.2 110.3 111.3 110.7 110.0 110.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • January 1993 2.13—Continued „ 1987 1991 1992 uroup SIC pro- 1991 code por- avg. tion Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Julyr Aug.r Sept.r Oct." Index (1987 = 100) MAJOR INDUSTRIES 1 Total index 100.0 107.1 108.4 108.1 107.4 106.6 107.2 107.6 108.1 108.9 108.5 109.4 109.0 108.7 109.0 2 Manufacturing 84.4 107.4 109.0 108.6 108.1 107.4 108.1 108.5 109.0 109.9 109.6 110.2 109.9 109.5 109.9 3 Primary processing 26.7 102.4 104.7 104.1 103.5 103.6 103.9 104.5 105.0 105.6 105.6 107.3 106.0 105.6 105.7 4 Advanced processing 57.7 109.8 111.0 110.7 110.3 109.2 110.0 110.3 110.8 111.9 111.4 111.6 111.8 111.3 111.8 5 Durable goods 47.3 107.1 108.2 107.8 107.1 105.8 107.0 107.0 107.6 109.1 108.5 109.0 109.0 108.1 108.8 6 Lumber and products ... "'24 2.0 94.2 93.8 96.4 95.2 97.4 98.8 99.2 97.2 97.4 95.4 99.8 98.7 97.6 98.4 7 Furniture and fixtures ... 25 1.4 99.1 100.5 99.9 100.6 98.7 98.1 98.6 101.1 103.3 100.3 101.0 102.2 110011..44 110022..77 8 Clay, glass, and stone products 32 2.5 94.9 94.4 92.8 93.0 92.8 94.6 95.0 95.6 96.7 96.6 97.1 96.2 95.9 95.1 9 Primary metals 33 3.3 99.5 102.6 103.5 101.3 102.5 102.7 101.4 100.9 102.0 102.1 105.6 104.3 101.9 102.8 10 Iron and steel 331,2 1.9 98.0 102.4 105.6 101.7 105.0 103.7 102.5 100.9 102.2 101.8 106.4 104.4 103.0 103.5 11 Raw steel .1 97.3 101.3 99.1 97.6 103.3 102.7 98.8 99.9 98.5 101.5 105.3 101.9 99.8 100.2 12 Nonferrous 333-6,9 1.4 101.5 102.9 100.5 100.8 98.9 101.2 99.9 100.9 101.8 102.5 110044..44 110044..22 110000..55 110011..77 13 Fabricated metal products 34 5.4 100.4 101.9 101.8 101.2 99.7 100.5 100.0 100.6 102.2 102.2 102.6 102.1 100.8 101.0 14 Nonelectrical machinery. 35 8.6 123.5 123.5 122.8 121.9 121.4 121.9 122.9 124.1 126.7 126.4 127.8 129.2 112299..55 113300..77 15 Office and computing machines 357 2.5 155.5 155.9 157.8 159.1 160.5 162.4 164.9 168.2 170.5 174.0 178.0 182.0 185.5 188.5 16 Electrical machinery .... 36 8.6 110.1 109.8 110.7 110.6 110.0 110.7 110.9 111.0 112.3 112.2 111122..66 113.0 111111..99 111122..11 17 Transportation equipment 37 9.8 98.6 102.4 99.7 98.0 93.8 96.8 96.5 98.0 99.6 98.2 9966..77 96.8 9944..77 9966..44 18 Motor vehicles and parts 371 4.7 90.4 100.4 95.9 94.6 87.1 93.8 94.2 98.5 102.7 100.4 9977..77 99.4 9977..00 110011..22 19 Autos and light trucks 2.3 89.4 103.2 97.6 95.5 83.5 92.9 93.7 101.1 106.5 103.0 9999..33 98.6 9966..77 110033..33 20 Aerospace and miscellaneous transportation equipment.. 372-6,9 5.1 106.0 104.3 103.1 101.2 99.8 99.6 98.6 97.4 96.8 96.3 95.7 94.3 92.7 92.0 2211 Instruments 38 3.3 118.2 118.2 118.7 119.0 118.3 118.6 118.6 119.0 119.8 118.5 118.5 118.0 119.0 119.0 22 Miscellaneous 39 1.2 119.3 120.6 120.7 121.0 121.2 120.0 120.0 118.9 118.4 117.8 120.4 118.0 117.9 118.7 2 2 3 4 No F n o d o u d r s a ble goods "20 3 8 7 . . 8 2 1 10 0 8 7 . . 6 9 1 10 1 9 0 . . 4 1 1 1 0 1 9 0 . . 6 1 1 1 0 0 9 9 . . 6 5 1 1 0 0 9 9 . . 2 5 1 1 0 0 9 9 . . 6 6 1 1 1 1 0 0 . . 4 2 1 1 1 0 0 9 . . 7 6 1 10 1 9 0 . . 3 9 1 1 1 0 1 9 . . 0 0 1 1 1 0 1 9 . . 7 8 1 1 1 1 1 0 . . 1 3 1 1 1 1 1 0 . . 2 0 1 1 1 1 0 1 . . 3 2 25 Tobacco products 21 1.0 99.7 102.2 97.7 94.7 98.8 99.4 101.3 101.0 102.5 103.6 106.6 107.1 105.4 103.5 26 Textile mill products.... 22 1.8 100.5 105.5 104.4 102.5 103.1 104.7 105.3 106.3 106.8 105.3 107.1 106.9 106.7 105.0 27 Apparel products 23 2.4 96.2 98.7 98.8 99.0 97.5 97.7 97.8 98.0 99.0 98.1 99.4 97.6 97.6 97.4 2288 Paper and products 26 3.6 105.1 109.0 106.1 107.0 107.1 104.6 105.8 107.0 105.8 107.3 109.6 105.5 107.8 106.6 2299 Printing and publishing .. 27 6.4 112.3 114.4 114.2 114.5 114.8 114.4 113.8 113.7 113.4 113.0 112.3 112.4 112.9 112.7 30 Chemicals and products . 28 8.6 110.9 113.5 113.0 112.6 112.7 113.4 114.8 115.8 117.0 117.5 118.0 117.7 117.5 117.8 3 3 2 1 R Pe u t b ro b l e e r u a m n d p r p o l d as u t c ic ts 29 1.3 107.5 106.0 106.7 108.6 106.6 106.9 109.7 110.3 108.5 108.9 110099..11 104.3 110077..55 111111..00 products 30 3.0 110.0 113.2 112.6 113.0 113.2 114.0 115.4 116.5 117.1 117.3 118.5 118.5 117.4 117.3 3333 Leather and products ... 31 .3 88.1 83.9 84.3 83.2 83.0 81.4 82.9 84.1 86.2 86.2 87.1 83.5 84.1 84.6 34 Mining 7.9 101.1 100.7 99.6 98.8 97.8 98.4 97.5 99.1 99.7 98.0 100.6 98.8 97.7 98.1 35 Metal "lO .3 150.2 146.5 151.5 154.0 144.2 152.9 155.8 154.2 166.4 154.0 163.7 165.5 165.0 165.4 36 Coal 11,12 1.2 109.2 107.9 108.4 107.6 107.3 107.9 103.0 104.0 107.6 98.6 112.0 107.5 103.7 101.9 37 Oil and gas extraction 13 5.7 95.8 96.0 94.1 93.0 92.4 92.7 91.9 94.2 93.4 93.9 94.0 92.4 91.8 92.7 38 Stone and earth minerals .. 14 .7 108.1 105.9 105.8 106.4 104.8 103.5 107.4 105.9 108.0 105.6 106.2 106.3 105.2 106.3 39 Utilities 7.6 109.2 109.4 111.0 107.9 106.8 106.4 107.7 108.2 107.3 106.7 109.3 109.1 111.2 110.7 4 4 0 1 G El a e s c tric 4 49 9 2 U ,3 P P T T 6 1 . . 0 6 1 9 1 6 2 . . 0 8 1 9 1 8 2 . . 9 2 1 1 0 1 4 2 . . 7 7 1 10 0 0 9 . . 5 9 1 9 0 7 9 . . 5 3 1 9 0 6 9 . . 9 0 1 9 1 6 0 . . 7 7 1 9 1 7 1 . .0 7 1 9 1 6 0 . . 6 2 1 9 0 5 9 . . 3 7 1 9 1 5 3 . . 4 0 1 9 1 5 2 . . 5 7 1 9 1 5 5 . . 6 4 1 9 1 5 4 . . 2 8 SPECIAL AGGREGATES 42 Manufacturing excluding motor vehicles and parts 79.8 108.4 109.5 109.3 108.9 108.6 108.9 109.3 109.6 110.3 110.1 111100..99 110.5 111100..22 111100..44 43 Manufacturing excluding office and computing machines 82.0 106.0 107.6 107.1 106.6 105.8 106.5 106.8 107.2 108.1 107.6 108.2 107.8 107.2 107.5 Gross value (billions of 1982 dollars, annual rates) MAJOR MARKETS 44 Products, total 1,734.8 1,880.0 1,911.4 1,904.9 1,888.9 1,869.5 1,889.7 1,902.8 1,918.7 1,935.5 l,920.1r 1,936.2 1,932.9 1,934.9 1,957.5 45 Final 1,350.9 1,481.8 1,510.0 1,504.1 1,488.0 1,468.7 1,490.8 1,501.5 1,518.2 1,532.1 i,5i9.r 1,530.4 1,530.3 1,533.6 1,556.6 4 46 1 E C q o u n i s p u m m e e n r t goods 5 83 1 3 7 . . 4 5 6 87 0 9 2 . . 8 0 6 90 0 2 7 . . 4 6 6 90 0 2 1 . . 2 8 5 8 9 9 3 4 . . 5 5 5 8 9 7 1 7 . . 1 6 6 89 0 0 0 . . 2 6 6 89 0 6 5 . . 2 3 6 9 1 0 2 5 . . 7 6 6 9 1 1 9 2 . . 7 4 6 9 1 0 7 1 . . 8 3 r r 6 90 2 9 1 . . 3 0 6 9 2 0 6 4 . . 4 0 6 9 2 0 8 5 . . 3 3 9 6 2 3 0 5 . . 8 8 48 Intermediate 384.0 398.2 401.4 400.8 401.0 400.7 398.9 401.2 400.5 403.4 401. lr 405.8 402.6 401.3 400.8 1. Data in this table also appear in the Board's G.17 (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 Dec. Jan. Feb. Mar. Apr. May June Julyr Aug.r Sept. 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 999r 972 6 Two-or-more-family 373 298 174 198 178 146 191 148 272 153 177 148r 148 7 Under construction at end of period1.. 850 711 606 631 633 633 640 629 657 655 653r 645r 639 8 One-family 535 449 434 451 454 458 466 464 482 484 484r 484r 484 9 Two-or-more-family 315 262 173 180 179 175 174 165 175 171 1691 161r 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 l,191r 1,205 11 One-family 1,026 966 838 879 824 851 838 908 975 889 l,011r 989r 995 12 Two-or-more-family 396 342 253 194 197 170 205 189 152 178 193r 202r 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) 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. Census Bureau estimates for all series except (1) mobile homes, which 2. Not seasonally adjusted. 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 Census Bureau in its of existing units, which are published by the National Association of Realtors. All 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 Census Bureau in July 1976. authorizations are those reported to the Census Bureau from 17,000 jurisdictions beginning in 1984. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • January 1993 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 OOOcccttt... 11999911 11999922 111999999222111 OOcctt.. OOcctt.. Dec. Mar. June Sept. June July Aug. Sept. Oct. CONSUMER PRICES2 (1982-84=100) 1 All items 2.9 3.2 3.2 3.5 2.6 2.6 .3 .1 .3 .2 .4 141.8 2 4 i 6 E A n l C S l e e r i o t g r m e v y m i m c i s e t o e s l d m e i s t s s i e f s o od and energy -8 4 4 4 1 . . . . 6 . 4 1 6 6 2 2 3 3 1 . . . . . 7 7 5 9 8 2 4 3 3 . . . . . 7 3 1 6 6 -6 4 4 5 1 . . . . . 9 8 3 8 5 - 1 1 2 2 2 2 . . . . . 2 8 1 9 5 4 2 2 2 . . . . . 7 5 1 6 4 2. . . . . 0 1 3 2 0 -.1 . . . . 3 3 2 2 -.2 . . . . 9 3 2 2 . . . . . 4 0 1 2 2 . . . . . 0 6 5 5 3 1 1 1 1 1 3 0 4 3 5 8 4 9 3 7 . . . . . 3 5 7 0 9 PRODUCER PRICES (1982=100) 1 1 7 8 9 1 0 Fin C C C O i a o o s th h p n n e e i s s t r d u u a l m m c g o e e e o n q r r o s u d f e u i o s p n m o m e e d r e g r s n y g t oods -1 -1 - 1 2 3 . . . . . 1 3 1 7 7 2 2 1 1 . . . . . 2 2 7 7 5 - - 1 2 1 1 . . . 5 . . 0 4 9 0 -7 3 3 1 . . . . . 0 5 6 3 0 - 1 1 2 3 7 . . . . . 0 4 3 9 9 - 3 1 1 . . 5 . . . 6 9 2 6 - - 2 . . . 1 4 . , 5 2 2 R R ~ — . . . 2 2 2 .8 R R - -. . 1 1 . . . 1 1 7 . . .. . .. 3 0 44 2 88 - - 1 . . 2 1 . . . 4 1 1 1 1 1 1 8 3 3 2 2 0 0 8 4 3 . . . . . 1 1 0 3 6 Intermediate materials 12 Excluding foods and feeds -3.2 1.2 -1.7 .0 5.4 .3 .8R .<Y .0 .1 .0 115.7 13 Excluding energy -.8 1.1 .0 1.7 1.7 1.0 .2 .R .2 .0 -.2 122.3 Crude materials 1 1 lb 5 4 E O Fo n th o e e r d g r s y -3 - -7 9 1 . . . 1 4 1 2 2 . . . 7 9 9 - - 4 5 5 . . . 9 9 3 -2 1 1 6 1 5 . . . 6 8 0 5 4 1 1 . . . 8 5 9 - 1 6 2 6 . . . 2 5 4 3. , . 5 7 R R R -1 i . . . 8 f f f R f -.4 . . 2 1 - 3 . . 5 . 6 6 - - 1 . . 5 . 3 6 1 1 8 0 2 2 3 8 . . . 8 5 4 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 1991 1992 AAccccoouunntt 11998899 11999900 11999911 Q3 Q4 Ql Q2 Q3 GROSS DOMESTIC PRODUCT 1 Total 5,250.8 5,522.2 5,677.5 5,713.1 5,753.3 5,840.2 5,902.2 5,967.1 By source 2 Personal consumption expenditures 3,523.1 3,748.4 3,887.7 3,914.2 3,942.9 4,022.8 4,057.1 4,105.0 3 Durable goods 459.4 464.3 446.1 453.0 450.4 469.4 470.6 481.6 4 Nondurable goods 1,149.5 1,224.5 1,251.5 1,255.3 1,251.4 1,274.1 1,277.5 1,290.1 5 Services 1,914.2 2,059.7 2,190.1 2,205.9 2,241.1 2,279.3 2,309.0 2,333.3 6 Gross private domestic investment 832.3 799.5 721.1 732.8 736.1 722.4 773.2 776.9 7 Fixed investment 798.9 793.2 731.3 732.6 726.9 738.2 765.1 761.5 8 Nonresidential 568.1 577.6 541.1 538.4 528.7 531.0 550.3 544.5 9 Structures 193.3 201.1 180.1 175.6 169.7 170.1 170.3 163.3 10 Producers' durable equipment 374.8 376.5 360.9 362.8 358.9 360.8 380.0 381.1 11 Residential structures 230.9 215.6 190.3 194.2 198.2 207.2 214.8 217.0 12 Change in business inventories 33.3 6.3 -10.2 .2 9.2 -15.8 8.1 15.4 13 Nonfarm 31.8 3.3 -10.3 -1.2 14.5 -13.3 6.4 10.3 14 Net exports of goods and services -79.7 -68.9 -21.8 -27.1 -16.0 -8.1 -37.1 -37.3 15 Exports 508.0 557.0 598.2 602.3 622.9 628.1 625.4 626.8 16 Imports 587.7 625.9 620.0 629.5 638.9 636.2 662.5 664.2 17 Government purchases of goods and services 975.2 1,043.2 1,090.5 1,093.3 1,090.3 1,103.1 1,109.1 1,122.5 18 Federal 401.6 426.4 447.3 447.2 440.8 445.0 444.8 451.7 19 State and local 573.6 616.8 643.2 646.0 649.5 658.0 664.3 670.9 By major type of product 20 Final sales, total 5,217.5 5,515.9 5,687.7 5,712.9 5,744.2 5,855.9 5,894.1 5,951.7 21 Goods 2,063.6 2,160.1 2,192.8 2,194.9 2,188.4 2,233.6 2,233.2 2,250.2 22 Durable 891.2 920.6 907.6 910.8 905.7 923.6 932.3 939.4 23 Nondurable 1,172.5 1,239.5 1,285.1 1,284.1 1,282.7 1,310.0 1,300.8 1,310.8 24 Services 2,642.2 2,846.4 3,030.3 3,053.6 3,090.3 3,142.2 3,173.4 3,218.1 25 Structures 511.7 509.4 464.7 464.4 465.5 480.1 487.6 483.4 26 Change in business inventories 33.3 6.3 -10.2 .2 9.2 -15.8 8.1 15.4 27 Durable goods 25.2 -.9 -19.3 -7.0 -8.1 -19.3 9.5 3.9 28 Nondurable goods 8.1 7.2 9.0 7.2 17.3 3.5 -1.4 11.5 MEMO 29 Total GDP in 1987 dollars 4,838.0 4,877.5 4,821.0 4,831.8 4,838.5 4,873.7 4,892.4 4,924.5 NATIONAL INCOME 30 Total 4,249.5 4,468.3 4,544.2 4,555.4 4,599.1 4,679.4 4,716.5 n.a. 31 Compensation of employees 3,100.2 3,291.2 3,390.8 3,407.0 3,433.8 3,476.3 3,506.3 3,531.8 32 Wages and salaries 2,586.4 2,742.9 2,812.2 2,824.4 2,845.0 2,877.6 2,901.3 2,921.3 33 Government and government enterprises 478.5 514.8 543.5 544.3 546.4 554.6 561.4 566.6 34 Other 2,107.9 2,228.0 2,268.7 2,280.0 2,298.6 2,323.0 2,339.9 2,354.7 35 Supplement to wages and salaries 513.8 548.4 578.7 582.6 588.7 598.7 605.0 610.5 36 Employer contributions for social insurance 261.9 277.4 290.4 292.0 293.7 299.4 301.5 302.6 37 Other labor income 251.9 271.0 288.3 290.6 295.0 299.2 303.6 307.9 38 Proprietors' income1 347.3 366.9 368.0 367.1 377.9 393.6 398.4 396.8 39 Business and professional1 307.0 325.2 332.2 337.6 340.0 353.6 359.9 366.2 40 Farm1 40.2 41.7 35.8 29.5 37.9 40.1 38.5 30.7 41 Rental income of persons2 -13.5 -12.3 -10.4 -10.3 -6.6 -4.5 3.3 .0 42 Corporate profits1 362.8 361.7 346.3 341.2 347.1 384.0 388.4 n.a. 43 Profits before tax 342.9 355.4 334.7 336.7 332.3 366.1 376.8 n.a. 44 Inventory valuation adjustment -17.5 -14.2 3.1 -4.8 .7 -5.4 -15.5 -11.1 45 Capital consumption adjustment 37.4 20.5 8.4 9.3 14.1 23.3 27.0 30.0 46 Net interest 452.7 460.7 449.5 450.5 446.9 430.0 420.0 n.a. 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 • January 1993 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 1991 Q3 Q4 Ql Q2 Q3 PERSONAL INCOME AND SAVING 4,380.3 4,664.2 4,828.3 4,846.2 4,907.2 4,980.5 5,028.9 5,056.0 2 Wage and salary disbursements 2,586.4 2,742.8 2,812.2 2,824.4 2,845.0 2,877.6 2,901.3 2,921.3 3 Commodity-producing industries 724.2 745.6 737.4 738.8 741.5 736.8 743.1 741.6 4 Manufacturing 542.2 556.1 556.9 559.0 563.9 559.9 564.7 564.7 607.0 634.6 647.4 651.1 652.9 660.9 662.9 666.1 6 Service industries 776.8 847.8 883.9 890.2 904.3 925.3 933.9 946.9 7 Government and government enterprises 478.5 514.8 543.6 544.3 546.4 554.6 561.4 566.6 251.9 271.0 288.3 290.6 295.0 299.2 303.6 307.9 347.3 366.9 368.0 367.1 377.9 393.6 398.4 396.8 307.0 325.2 332.2 337.6 340.0 353.6 359.9 366.2 11 Farm1 40.2 41.7 35.8 29.5 37.9 40.1 38.5 30.7 12 Rental income of persons -13.5 -12.3 -10.4 -10.3 -6.6 -4.5 3.3 .0 13 Dividends 126.5 140.3 137.0 135.6 134.3 133.9 136.6 141.0 668.2 694.5 700.6 701.8 703.3 684.8 675.2 666.7 15 Transfer payments 625.0 685.8 771.1 777.1 799.8 842.7 859.7 873.5 16 Old-age survivors, disability, and health insurance benefits ... 325.1 352.0 382.0 384.2 390.6 405.7 412.1 417.1 17 LESS: Personal contributions for social insurance 211.4 224.8 238.4 240.1 241.5 246.8 249.3 251.3 18 EQUALS: Personal income 4,380.3 4,664.2 4,828.3 4,846.2 4,907.2 4,980.5 5,028.9 5,056.0 19 LESS: Personal tax and nontax payments 593.3 621.3 618.7 618.6 622.3 619.6 617.1 628.7 20 EQUALS: Disposable personal income 3,787.0 4,042.9 4,209.6 4,227.6 4,284.9 4,360.9 4,411.8 4,427.3 21 LESS: Personal outlays 3,634.9 3,867.3 4,009.9 4,036.6 4,065.5 4,146.3 4,179.5 4,226.6 22 EQUALS: Personal saving 152.1 175.6 199.6 191.0 219.4 214.6 232.3 200.7 MEMO Per capita (1987 dollars) 23 Gross domestic product 19,555.6 19,513.0 19,077.1 19,094.0 19,066.0 1199,,115588..55 1199,,118811..88 1199,,225511..77 24 Personal consumption expenditures 13,028.9 13,043.6 12,824.1 12,847.9 12,802.6 12,930.2 12,893.3 12,963.9 25 Disposable personal income 14,005.0 14,068.0 13,886.0 13,876.0 13,913.0 14,017.0 14,021.0 13,982.0 26 Saving rate (percent) 4.0 4.3 4.7 4.5 5.1 4.9 5.3 4.5 GROSS SAVING 741.8 718.0 708.2 679.4 698.2 677.5 682.9 n.a. 28 Gross private saving 819.4 854.1 901.5 884.9 934.8 950.1 968.1 n.a. 29 Personal saving 152.1 175.6 199.6 191.0 219.4 214.6 232.3 200.7 30 Undistributed corporate profits 86.9 75.7 75.8 69.0 78.3 104.0 97.7 n.a. 31 Corporate inventory valuation adjustment -17.5 -14.2 3.1 -4.8 .7 -5.4 -15.5 -11.1 Capital consumption allowances 352.4 368.3 383.0 383.5 386.3 338866..11 339911..22 440066..99 33 Noncorporate 228.0 234.6 243.1 241.4 250.7 245.3 247.0 290.4 34 Government surplus, or deficit (-), national income and product accounts -77.5 -136.1 -193.3 -205.6 -236.6 -272.6 --228855..22 n.a. 35 Federal -122.3 -166.2 -210.4 -221.0 -258.7 -289.2 -302.9 n.a. 36 State and local 44.8 30.1 17.1 15.4 22.0 16.6 17.7 n.a. 742.9 723.4 730.1 709.9 714.6 706.5 713.8 720.0 38 Gross private domestic 832.3 799.5 721.1 732.8 736.1 722.4 773.2 776.9 39 Net foreign -89.3 -76.1 9.0 -22.9 -21.5 -16.0 -59.4 n.a. 40 Statistical discrepancy 1.1 5.4 21.9 30.5 16.4 29.0 30.9 n.a. 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 1992 Item 1989 1990 1991 Q2 Q3 Q4 Ql 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,%2 103,324 104,151 107,851 107,946 107,580 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 Investment income, 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 Other U.S. liabilities reported by U.S. banks3 4,976 3,385 -1,668 -942 -2,732 -914 5,534 7,329 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 -1,078 1,660 -1,478 2,447 -8,410 -19,567 36 Due to seasonal adjustment 47,370 883 -6,137 613 4,023 343 37 Before seasonal adjustment 2,394 -1,078 777 4,659 1,835 -12,433 -19,910 47,370 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 • January 1993 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data seasonally adjusted 1992 IItteemm 11998899 11999900 11999911 Mar. Apr. May June July Aug.r Sept.p 1 Exports of domestic and foreign merchandise, (F.A.S. value), excluding grant-aid shipments 363,812 393,592 421,730 37,085 36,406 35,718 38,165 37,806 35,799 38,238 2 General imports (customs value), including merchandise for immediate consumption plus entries into bonded warehouses 473,211 495,311 487,129 42,668 43,469 42,859 44,893 45,082 44,745 46,547 3 Trade balance -109,399 -101,718 -65,399 -5,584 -7,063 -7,141 -6,729 -7,276 -8,946 -8,309 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 1992 1989 Apr. May June July Aug. Sept. 1 Total 74,609 83,316 77,719 74,712 74,587 77,092 77,370 78,474 78,527 2 Gold stock, including Exchange Stabilization Fund1 11,059 11,058 11,057 11,057 11,057 11,059 11,059 11,059 11,059 3 Special drawing rights ,3 9,951 10,989 11,240 10,930 11,315 11,597 11,702 12,193 12,111 4 Reserve position in International Monetary Fund 9,048 9,076 9,488 8,968 9,175 9,381 9,625 9,762 9,778 5 Foreign currencies 44,551 52,193 45,934 43,757 43,040 45,055 44,984 45,460 45,579 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 foUows: 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 Apr. May June July Aug. Sept. Oct.p 1 Deposits 589 369 968 206 217 219 264 297 546 415 Held in custody 2 U.S. Treasury securities 224,911 278,499 281,107 303,413 307,562 307,337 316,431 318,328 306,971 311,538 3 Earmarked gold 13,456 13,387 13,303 13,304 13,295 13,268 13,261 13,261 13,241 13,201 1. Excludes deposits and U.S. Treasury securities held for international and 3. Held for foreign and international accounts and valued at $42.22 per fine regional organizations. troy ounce; not included in the gold stock of the United States. 2. Marketable U.S. Treasury bills, notes, and bonds and nonmarketable U.S. Treasury securities payable at face value in dollars or foreign currencies. 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 ivoy Mar. Apr. May June July Aug. Sept. ASSETS All foreign countries 1 Total payable in any currency 545,366 556,925 548,901 562,212 549,858 564,816 564,466 537,529 544,4Ur 544,701 2 Claims on United States 198,835 188,496 176,301 193,434 177,992 182,554 183,933 171,911 163,101 167,258 3 Parent bank 157,092 148,837 137,509 157,129 143,790 145,974 147,626 136,287 128,331 134,019 4 Other banks in United States 17,042 13,296 12,884 11,612 9,993 11,640 10,418 9,576 9,181 8,083 5 Nonbanks 24,701 26,363 25,908 24,693 24,209 24,940 25,889 26,048 25,589 25,156 6 Claims on foreigners 300,575 312,449 303,934 299,890 302,916 314,569 311,990 311,578 321,262 319,379 7 Other branches of parent bank 113,810 135,003 111,729 111,950"" 111,140* 115,407r 115,398r 112,177 116,674 118,369 8 Banks 90,703 72,602 81,970 79,430"" 83,673r 86,029r 84,534r 85,141r 86,978 83,912 9 Public borrowers 16,456 17,555 18,652 18,328 18,743 19,194 20,162 19,645 20,423 20,485 10 Nonbank foreigners 79,606 87,289 91,583 90,182r 89,360" 93,939" 91,8%r 94,615r 97,187 96,613 11 Other assets 45,956 55,980 68,666 68,888 68,950 67,693 68,543 54,040 60,048r 58,064 12 Total payable in U.S. dollars 382,498 379,479 363,941 381,113 364,748 370,290 369,561 349,145 340,689*" 346,708 13 Claims on United States 191,184 180,174 169,662 187,744 173,337 177,311 177,638 166,507 157,471 161,302 14 Parent bank 152,294 142,962 133,476 153,859 141,264 142,874 144,287 133,120 124,805 130,346 15 Other banks in United States 16,386 12,513 12,025 10,956 9,255 11,012 10,016 9,135 8,876 7,476 16 Nonbanks 22,504 24,699 24,161 22,929 22,818 23,425 23,335 24,252 23,790 23,480 17 Claims on foreigners 169,690 174,451 167,010 163,877 162,%7 167,054 168,586 162,843 161,306 166,435 18 Other branches of parent bank 82,949 95,298 78,114 77,893r 75,177r 76,949" 76,700r 72,250 70,693 72,191 19 Banks 48,396 36,440 41,635 39,845r 41,415r 42,061r 43,307r 41,718 40,156 42,281 20 Public borrowers 10,961 12,298 13,685 13,217 12,994 12,994 13,723 13,320 13,661 13,965 21 Nonbank foreigners 27,384 30,415 33,576 32,922 33,381 35,050 34,856 35,555 36,7% 37,998 22 Other assets 21,624 24,854 27,269 29,492 28,444 25,925 23,337 19,795 21,912r 18,971 United Kingdom 23 Total payable in any currency 161,947 184,818 175,599 169,139 170,775 174,925 171,027 159,317 165,832 161,157 24 Claims on United States 39,212 45,560 35,257 37,015 35,451 37,369 38,0% 38,763 37,511 35,891 25 Parent bank 35,847 42,413 31,931 34,048 32,379 34,433 35,343 35,542 34,593 32,929 26 Other banks in United States 1,058 792 1,267 1,158 1,228 970 756 1,065 744 1,067 27 Nonbanks 2,307 2,355 2,059 1,809 1,844 1,966 1,997 2,156 2,174 1,895 28 Claims on foreigners 107,657 115,536 109,692 101,491 104,467 107,795 104,270 105,990 108,895 106,758 29 Other branches of parent bank 37,728 46,367 35,735 33,463 34,061 35,331 36,952 35,359 37,732 37,977 30 Banks 36,159 31,604 36,394 33,499 36,126 37,548 34,783 36,777 37,711 36,1% 31 Public borrowers 3,293 3,860 3,306 3,060 3,108 3,165 2,995 3,128 3,046 3,371 32 Nonbank foreigners 30,477 33,705 34,257 31,469 31,172 31,751 29,540 30,726 30,406 29,214 33 Other assets 15,078 23,722 30,650 30,633 30,857 29,761 28,661 14,564 19,426 18,508 34 Total payable in U.S. dollars 103,208 116,762 105,974 102,283 102,285 104,392 102,737 98,828 99,610 100,449 35 Claims on United States 36,404 41,259 32,418 34,464 33,298 35,185 35,376 36,133 34,948 33,618 36 Parent bank 34,329 39,609 30,370 32,645 31,022 33,059 33,751 33,936 32,786 31,578 37 Other banks in United States 843 334 822 725 853 677 627 785 625 711 38 Nonbanks 1,232 1,316 1,226 1,094 1,423 1,449 998 1,412 1,537 1,329 39 Claims on foreigners 59,062 63,701 58,791 52,306 54,129 56,615 56,888 56,264 55,812 59,099 40 Other branches of parent bank 29,872 37,142 28,667 25,933 25,922 27,482 28,541 26,751 26,825 27,986 41 Banks 16,579 13,135 15,219 13,154 14,829 15,348 15,380 15,930 15,565 16,808 42 Public borrowers 2,371 3,143 2,853 2,623 2,545 2,463 2,474 2,653 2,353 2,604 43 Nonbank foreigners 10,240 10,281 12,052 10,596 10,833 11,322 10,493 10,930 11,069 11,701 44 Other assets 7,742 11,802 14,765 15,513 14,858 12,592 10,473 6,431 8,850 7,732 Bahamas and Cayman Islands 45 Total payable in any currency 176,006 162,316 168,326 175,893 162,871 167,139 168,963 153,691 144,089 145,450 46 Claims on United States 124,205 112,989 115,244 122,762 112,080 115,633 114,467 102,850 94,595 %,750 47 Parent bank 87,882 77,873 81,520 91,549 82,823 84,041 83,316 72,107 64,454 68,209 48 Other banks in United States 15,071 11,869 10,907 9,809 8,115 9,729 9,118 8,045 8,060 6,562 49 Nonbanks 21,252 23,247 22,817 21,404 21,142 21,863 22,033 22,698 22,081 21,979 50 Claims on foreigners 44,168 41,356 45,229 44,285 41,929 42,828 45,600 41,886 41,315 41,712 51 Other branches of parent bank 11,309 13,416 11,098 11,278 10,156 9,311 9,392 8,678 8,5% 7,753 52 Banks 22,611 16,310 20,174 19,645 18,406 19,658 21,548 18,837 17,570 18,412 53 Public borrowers 5,217 5,807 7,161 6,599 6,332 6,459 7,084 6,728 7,125 7,102 54 Nonbank foreigners 5,031 5,823 6,7% 6,763 7,035 7,400 7,576 7,643 8,024 8,445 55 Other assets 7,633 7,971 7,853 8,846 8,862 8,678 8,8% 8,955 8,179 6,988 56 Total payable in U.S. dollars 170,780 158,390 163,771 171,320 158,196 162,066 163,313 147,905 138,348 139,769 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 • January 1993 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data1—Continued Account 1990 Mar. Apr. May June July Aug. LIABILITIES All foreign countries 57 Total payable in any currency 545,366 556,925 548,901 562,212 549,858 564,816 564,466 537,529 544,411r 544,701 58 Negotiable certificates of deposit (CDs) 23,500 18,060 16,284 14,498 12,757 14,010 13,040 12,758 14,246 12,389 59 To United States 197,239 189,412 198,121 210,357 196,635 198,897 204,929 192,087 179,138 185,002 60 Parent bank 138,412 138,748 136,431 142,551 138,273 136,195 143,474 133,051 126,747 127,656 61 Other banks in United States 11,704 7,463 13,260 14,137 15,075 13,944 14,009 11,833 10,898 12,303 62 Nonbanks 47,123 43,201 48,430 53,669 43,287 48,758 47,446 47,203 41,493 45,043 63 To foreigners 296,850 311,668 288,254 292,523 296,580 308,394 302,376 301,943 314,702 311,853 64 Other branches of parent bank ... 119,591 139,113 112,033 113,178r 111,846' 115,098' 116,760' 114,226 120,292 118,987 65 Banks 76,452 58,986 63,097 63,060' 65,177' 68,528' 65,983' 65,419 68,366 69,259 66 Official institutions 16,750 14,791 15,596 15,697 16,083 19,465 16,399 18,058 18,241 16,963 67 Nonbank foreigners 84,057 98,778 97,528 100,588 103,474 105,303 103,234 104,240 107,803 106,644 68 Other liabilities 27,777 37,785 46,242 44,834 43,886 43,515 44,121 30,741 36,325' 35,457 69 Total payable in U.S. dollars 396,613 383,522 370,561 380,384 365,920 373,679 374,506 354,666 346,278 346,575 70 Negotiable CDs 19,619 14,094 11.909 10,278 8,470 9,643 8,475 8,531 8,755 7,628 71 To United States 187,286 175,654 185,286 198,349 185,533 187,438 192,792 179,395 166,309 170,705 72 Parent bank 132,563 130,510 129,669 135,761 131,844 130,007 136,273 125,647 119,302 119,797 73 Other banks in United States 10,519 6,052 11,707 13,036 14,217 12,840 13,251 10,816 9,835 11,012 74 Nonbanks 44,204 39,092 43.910 49,552 39,472 44,591 43,268 42,932 37,172 39,8% 75 To foreigners 176,460 179,002 158,993 156,216 157,139 162,011 158,532 155,352 157,522 155,282 76 Other branches of parent bank ... 87,636 98,128 76,601 77,483r 75,772' 76,973' 77,604' 73,699 74,037 72,456 77 Banks 30,537 20,251 24,156 21,919' 22,577' 24,090' 23,474' 22,955 22,973 23,544 78 Official institutions 9,873 7,921 10,304 9,625 10,413 13,102 10,119 11,543 10,713 9,989 79 Nonbank foreigners 48,414 52,702 47,932 47,189 48,377 47,846 47,335 47,155 49,799 49,293 80 Other liabilities 13,248 14,772 14,373 15,541 14,778 14,587 14,707 11,388 13,692 12,960 United Kingdom 81 Total payable in any currency .. 161,947 184,818 175,599 169,139 170,775 174,925 171,027 159,317 165,832 161,157 82 Negotiable CDs 20,056 14,256 11,333 9,677 7,324 8,458 7,612 7,731 8,083 7,266 83 To United States 36,036 39,928 37,720 35,364 36,610 33,236 36,660 37,164 35,527 35,885 84 Parent bank 29,726 31,806 29,834 27,937 29,317 25,637 28,201 29,104 27,695 27,528 85 Other banks in United States 1,256 1,505 1,438 1,201 2,011 1,638 1,326 1,315 1,632 1,670 86 Nonbanks 5,054 6,617 6,448 6,226 5,282 5,961 7,133 6,745 6,200 6,687 87 To foreigners 92,307 108,531 98,167 96,566 99,804 106,603 100,340 100,738 104,892 101,082 88 Other branches of parent bank 27,397 36,709 30,054 27,937 28,239 30,429 31,464 30,205 31,234 29,839 89 Banks 29,780 25,126 25,541 25,881 27,046 27,549 25,315 25,155 26,435 25,823 90 Official institutions 8,551 8,361 9,670 9,277 9,539 12,732 10,167 11,091 10,699 9,131 91 Nonbank foreigners 26,579 38,335 32,902 33,471 34,980 35,893 33,394 34,287 36,524 36,289 92 Other liabilities 13,548 22,103 28,379 27,532 27,037 26,628 26,415 13,684 17,330 16,924 93 Total payable in U.S. dollars 108,178 116,094 108,755 101,602 100,799 102,783 101,901 97,565 99,092 95,642 94 Negotiable CDs 18,143 12,710 10,076 8,562 6,136 6,967 5,750 6,139 5,890 5,689 95 To United States 33,056 34,697 33,003 30,993 32,510 28,936 32,300 32,178 30,357 30,330 96 Parent bank 28,812 29,955 28,260 26,272 27,904 24,435 26,720 27,351 25,873 25,700 97 Other banks in United States 1,065 1,156 1,177 1,032 1,796 1,184 1,084 857 1,088 992 98 Nonbanks 3,179 3,586 3,566 3,689 2,810 3,317 4,4% 3,970 3,3% 3,638 99 To foreigners 50,517 60,014 56,626 52,059 52,625 57,489 54,262 52,894 54,381 51,677 100 Other branches of parent bank 18,384 25,957 20,800 18,792 18,136 19,497 20,918 18,634 18,983 17,747 101 Banks 12,244 9,488 11,069 9,861 9,435 10,799 9,848 9,399 9,289 9,112 102 Official institutions 5,454 4,692 7,156 6,628 6,998 9,915 7,049 7,808 6,956 6,156 103 Nonbank foreigners 14,435 19,877 17,601 16,778 18,056 17,278 16,447 17,053 19,153 18,662 104 Other liabilities 6,462 8,673 9,050 9,988 9,528 9,391 9,589 6,354 8,464 7,946 Bahamas and Cayman Islands 105 Total payable in any currency .. 176,006 162,316 168,326 175,893 162,871 167,139 168,963 153,691 144,089 145,450 106 Negotiable CDs 678 646 1,173 932 1,546 1,646 1,894 1,330 1,814 872 107 To United States 124,859 114,738 129,872 139,196 124,605 128,891 130,815 115,589 105,816 108,914 108 Parent bank 75,188 74,941 79,394 82,050 76,086 76,779 80,998 67,356 64,039 63,140 109 Other banks in United States , 8,883 4,526 10,231 11,696 12,060 11,085 11,708 9,641 8,491 9,6% 110 Nonbanks 40,788 35,271 40,247 45,450 36,459 41,027 38,109 38,592 33,286 36,078 111 To foreigners 47,382 44,444 35,200 34,002 34,899 35,021 34,637 35,136 34,878 34,087 112 Other branches of parent bank 23,414 24,715 17,388 17,100 16,933 16,842 16,799 17,668 17,315 16,071 113 Banks 8,823 5,588 5,662 5,139 6,009 6,346 6,075 6,390 6,242 6,787 114 Official institutions 1,097 622 572 536 736 731 770 862 935 1,034 115 Nonbank foreigners 14,048 13,519 11,578 11,227 11,221 11,102 10,993 10,216 10,386 10,195 116 Other liabilities 3,087 2,488 2,081 1,763 1,821 1,581 1,617 1,636 1,581 1,577 117 Total payable in U.S. dollars 171,250 157,132 163,603 171,255 158,247 162,280 163,951 148,744 138,864 139,963 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 Mar. Apr. May June Julyr Aug/ Sept." 1 344,529 360,546 381,499 385,572 394,709 401,795r 404,052 406,611 393,188 By type 2 Liabilities reported by banks in the United States 39,880 38,412 43,874 44,583 47,471 51,421r 48,883 52,132 43,219 3 U.S. Treasury bills and certificates 79,424 92,692 102,143 102,968 111,224 109,278 114,781 113,307 113,634 U.S. Treasury bonds and notes 4 202,487 203,677 209,042 210,754 208,069 213,363 212,5% 213,293 208,810 5 Nonmarketable 4,491 4,858 4,956 4,989 5,021 4,625 4,582 4,476 4,505 6 U.S. securities other than U.S. Treasury securities 18,247 20,907 21,484 22,278 22,924 23,108 23,210 23,403 23,020 By area 7 167,191 168,365 178,041 179,239 185,416 191,214r 194,351 195,897 185,865 8 8,671 7,460 7,016 7,855 9,347 9,302 9,876 9,990 7,027 9 Latin America and Caribbean 21,184 33,554 37,961 39,130 39,732 39,433 39,146 38,356 37,703 10 138,096 139,465 148,614 148,573 149,062 150,215 150,047 151,789 151,650 11 1,434 2,092 2,011 2,392 2,792 3,265 3,218 2,860 3,360 12 Other countries 7,955 9,608 7,854 8,381 8,358 8,364r 7,412 7,717 7,581 1. Includes the Bank for International Settlements. 5. Debt securities of U.S. government corporations and federally sponsored 2. Principally demand deposits, time deposits, bankers acceptances, commer- agencies, and U.S. corporate stocks and bonds. cial paper, negotiable time certificates of deposit, and borrowings under repur- 6. Includes countries in Oceania and Eastern Europe. chase agreements. SOURCE. Based on Treasury Department data and on data reported to the 3. Includes nonmarketable certificates of indebtedness (including those payable Treasury Department by banks (including Federal Reserve Banks) and securities in foreign currencies through 1974) and Treasury bills issued to official institutions dealers in the United States and on the 1984 benchmark survey of foreign portfolio of foreign countries. investment in the United States. 4. Excludes notes issued to foreign official nonreserve agencies. Includes bonds and notes payable in foreign currencies; zero coupon bonds are included at current value. 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 63,291 75,129 67,874 70,764 2 Banks' claims 68,983 65,127 66,7% 63,724 73,318 60,844 58,968 3 Deposits 25,100 20,491 29,672 29,812 26,192 23,269 23,462 4 Other claims 43,884 44,636 37,124 33,912 47,126 37,575 35,506 5 Claims of banks' domestic customers2 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 States that represent claims on foreigners held by reporting banks for the accounts authorities. of the domestic customers. 2. Assets owned by customers of the reporting bank located in the United Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • January 1993 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 1992 IItteemm 11998899 11999900 Mar. Apr. May June July Aug. Sept.p HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 736,878 759,634 756,510 774,028 769,486 785,162 786,924' 777,485' 768,979' 778,487 2 Banks' own liabilities 577,498 577,229 575,232 583,041 578,651 583,786 587,581' 571,410' 563,710' 584,512 3 Demand deposits 22,032 21,723 20,321 19,287 19,043 19,606 20,931 19,739 21,698 22,590 4 Time deposits2 168,780 168,017 159,649 147,994 153,383 150,373 152,185' 148,664' 144,483' 143,588 Other. 67,823 65,822 66,185 76,074 76,149 82,654 85,231' 82,448' 85,887' 81,289 6 Own foreign offices 318,864 321,667 329,077 339,686 330,076 331,153 329,234 320,559 311,642' 337,045 7 Banks' custodial liabilities5 159,380 182,405 181,278 190,987 190,835 201,376 199,343 206,075 205,269 193,975 8 U.S. Treasury bills and certificates 91,100 96,796 110,734 119,882 120,924 130,392 128,672 135,579' 135,744 134,894 9 Other negotiable and readily transferable instruments 19,526 17,578 18,664 18,429 17,797 18,995 18,020 1199,,333399'' 18,541 1188,,881144 10 Other 48,754 68,031 51,880 52,676 52,114 51,989 52,651 51,157 50,984 40,267 11 Nonmonetary international and regional organizations 4,894 5,918 8,981 11,219 10,291 11,313 12,771' 11,281' 12,584 1100,,110088 17 Banks' own liabilities 3,279 4,540 6,827 9,317 8,408 9,358 10,548' 8,152' 9,477 7,471 13 Demand deposits 96 36 43 144 29 46 40 24 21 103 14 Time deposits2 927 1,050 2,714 1,686 1,819 2,520 3,788 3,008' 2,630 2,292 15 Other. 2,255 3,455 4,070 7,487 6,560 6,792 6,72C 5,120' 6,826 5,076 16 Banks' custodial liabilities5 1,616 1,378 2,154 1,902 1,883 1,955 2,223 3,129 3,107 2,637 17 U.S. Treasury bills and certificates 197 364 1,730 1,225 1,442 1,461 1,687 2,602 2,654 1,991 18 Other negotiable and readily transferable instruments 1,417 1,014 424 637 441 494 534 527 453 664466 19 Other 2 0 0 40 0 0 2 0 0 0 ?N Official institutions9 113,481 119,303 131,104 146,017 147,551 158,695 160,699' 163,664' 165,439' 156,853 71 Banks' own liabilities 31,108 34,910 34,427 39,774 40,630 43,567 47,533' 45,338' 48,580' 40,068 ?? Demand deposits 2,196 1,924 2,642 1,342 1,360 1,320 1,631' 1,372' 1,676' 1,761 73 Time deposits 10,495 14,359 16,504 17,650 18,631 19,066 17,738 18,382' 18,551' 16,267 24 Other. 18,417 18,628 15,281 20,782 20,639 23,181 28,164' 25,584 28,353' 22,040 25 Banks' custodial liabilities5 82,373 84,393 96,677 106,243 106,921 115,128 113,166 118,326 116,859 116,785 26 U.S. Treasury bills and certificates 76,985 79,424 92,692 102,143 102,968 111,224 109,278 114,781 113,307 113,634 27 Other negotiable and readily transferable instruments 5,028 4,766 3,879 4,019 3,812 3,717 3,602 3,459 3,466 2,922 28 Other 361 203 106 81 141 187 286 86 86 229 79 Banks10 515,275 540,805 522,424 527,683 522,084 527,455 526,472' 514,723' 501,808' 522,844 30 Banks' own liabilities 454,273 458,470 459,177 461,497 456,309 460,919 459,710' 448,111' 434,855' 466,259 31 Unaffiliated foreign banks 135,409 136,802 130,100 121,811 126,233 129,766 130,476' 127,552' 123,213' 129,214 37 Demand deposits 10,279 10,053 8,632 8,543 8,753 9,229 9,705' 8,442' 9,851' 10,443 33 Time deposits2 90,557 88,541 82,857 74,266 79,632 77,098 80,170' 77,382' 73,082' 74,514 34 Other. 34,573 38,208 38,611 39,002 37,848 43,439 40,601' 41,728' 40,280' 44,257 35 Own foreign offices4 318,864 321,667 329,077 339,686 330,076 331,153 329,234 320,559 311,642r 337,045 36 Banks' custodial liabilities5 61,002 82,335 63,247 66,186 65,775 66,536 66,762 66,612 66,953' 56,585 37 U.S. Treasury bills and certificates 9,367 10,669 7,471 8,344 8,410 8,946 8,927 9,444 10,429' 10,905 38 Other negotiable and readily transferable instruments' 5,124 5,341 5,694 6,733 7,147 7,044 6,647 7,129 6,920 66,,884466 39 Other 46,510 66,325 50,082 51,109 50,218 50,546 51,188 50,039 49,604 38,834 40 Other foreigners 103,228 93,608 94,001 89,109 89,560 87,699 86,982 87,817 89,148' 88,682 41 Banks' own liabilities 88,839 79,309 74,801 72,453 73,304 69,942 69,790 69,809 70,798' 70,714 47 Demand deposits 9,460 9,711 9,004 9,258 8,901 9,011 9,555 9,901 10,150 10,283 43 Time deposits 66,801 64,067 57,574 54,392 53,301 51,689 50,489 49,892 50,220' 50,515 44 Other3 12,577 5,530 8,223 8,803 11,102 9,242 9,746 10,016 10,428 9,916 45 Banks' custodial liabilities5 14,389 14,299 19,200 16,656 16,256 17,757 17,192 18,008 IS^SC 17,968 46 U.S. Treasury bills and certificates 4,551 6,339 8,841 8,170 8,104 8,761 8,780 8,752' 9,354' 8,364 47 Other negotiable and readily transferable instruments 7,958 6,457 8,667 7,040 6,397 7,740 7,237 8,224' 7,702 8,400 48 Other 1,880 1,503 1,692 1,446 1,755 1,256 1,175 1,032 1,294 1,204 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 7,203 7,073 7,456 8,110 7,624 7,642 7,351 6,976 7,279 6,955 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

Nonbank-Reported Data A59 3.17—Continued 1992 IItteemm 11998899 11999900 11999911 Mar. Apr. May June July Aug. Sept.p AREA 1 Total, all foreigners 736,878 759,634 756,510 774,028 769,486 785,162 786,924' 777,485" 768,979" 778,487 2 Foreign countries 731,984 753,716 747,529 762,809 759,195 773,849 774,153 766,204" 756,395" 768,379 3 Europe 237,501 254,452 249,067 256,024 262,246 273,436 279,521 283,109 289,338" 289,722 4 Austria 1,233 1,229 1,193 1,230 1,219 1,337 1,490 1,445 1,427" 1,461 5 Belgium and Luxembourg 10,648 12,382 13,337 16,269 15,818 17,346 16,740 16,797 18,449" 17,942 6 Denmark 1,415 1,399 937 892 961 1,331 1,263 1,348 1,329 1,760 7 Finland 570 602 1,341 1,014 1,005 764 843 720 976 685 8 France 26,903 30,946 31,808 26,036 27,667 27,005 30,132 28,900 29,456 32,053 9 Germany 7,578 7,485 8,619 9,556 9,272 8,319 8,018 8,967 10,982 14,659 10 Greece 1,028 934 765 1,058 1,134 1,254 1,374 998 934 1,069 11 Italy 16,169 17,735 13,541 9,915 10,035 10,055 10,362 10,164 10,992 12,236 12 Netherlands 6,613 5,350 7,161 9,250 9,352 9,572 9,456 9,653 10,422 10,397 13 Norway 2,401 2,357 1,866 1,286 899 1,429 1,359 1,421 1,341 1,851 14 Portugal 2,418 2,958 2,184 2,071 2,217 2,391 2,530 2,659 2,664 2,245 15 Spain 4,364 7,544 11,391 13,504 14,435 14,316 15,844 15,313 14,904 15,589 16 Sweden 1,491 1,837 2,222 2,106 2,888 2,007 4,125 3,710 4,162 3,189 17 Switzerland 34,496 36,690 37,238 37,104 33,604 36,663 35,987 39,568 40,599 39,014 18 Turkey 1,818 1,169 1,598 1,600 1,362 1,691 1,580 1,789 2,021 2,087 19 United Kingdom 102,362 109,555 100,262 103,319 108,023 112,828 111,712 111,878 111,521 115,665 20 Yugoslavia 1,474 928 622 504 569 524 555 547 554 567 21 Others in Western Europe11 13,563 11,689 9,274 15,452 17,208 19,961 21,609 22,743 21,842" 12,807 22 U.S.S.R 350 119 241 168 287 436 440 609 525" 499 23 Other Eastern Europe 608 1,545 3,467 3,690 4,291 4,207 4,102 3,880 4,238 3,947 24 Canada 18,865 20,349 21,605 20,931 20,500 22,556 20,358 22,350 20,410 22,668 25 Latin America and Caribbean 311,028 332,997 346,025 351,067 341,925 339,862 339,517 325,910" 311,490" 302,175 26 Argentina 7,304 7,365 7,758 8,310 8,654 9,381 9,705 10,043 9,399 9,065 27 Bahamas 99,341 107,386 100,597 102,138 98,530 100,025 101,702 92,536 82,561 69,073 28 Bermuda 2,884 2,822 3,178 3,364 3,368 3,009 3,598 4,848 4,782 4,391 29 Brazil 6,351 5,834 5,942 5,745 5,752 5,399 5,612 5,522 5,484 5,393 30 British West Indies 138,309 147,321 163,872 166,802 160,991 158,515 156,756" 151,877" 148,450" 153,472 31 Chile 3,212 3,145 3,284 3,623 3,506 3,792 3,702 3,606" 3,394 3,440 32 Colombia 4,653 4,492 4,662 4,972 4,915 4,902 4,721 4,687" 4,711 4,205 33 Cuba 10 11 2 11 9 6 3 12 9 620 34 Ecuador 1,391 1,379 1,232 1,168 1,128 1,150 1,137 1,074 1,214 1,073 35 Guatemala 1,312 1,541 1,594 1,539 1,489 1,438 1,447 1,420 1,432 1,416 36 Jamaica 209 257 231 271 234 242 309 271 272" 309 37 Mexico 15,423 16,650 19,957 21,540 21,362 20,842 19,491 19,642 20,046" 19,650 38 Netherlands Antilles 6,310 7,357 5,592 5,205 5,986 5,347 5,313 5,085 4,825 4,751 39 Panama 4,362 4,574 4,695 4,158 4,216 4,100 4,286 4,457 4,302" 4,595 40 Peru 1,984 1,294 1,249 1,187 1,094 1,098 1,156 1,131 1,123 1,143 41 Uruguay 2,284 2,520 2,111 2,054 2,171 2,118 2,182 2,175 2,193" 2,019 42 Venezuela 9,482 12,271 13,181 12,190 11,874 11,705 11,448 11,080 10,802 11,101 43 Other 6,206 6,779 6,888 6,790 6,646 6,793 6,949" 6,444" 6,491" 6,459 44 156,201 136,844 120,440 125,678 125,187 128,083 124,549 124,894 125,214 114444,,113344 China 45 People's Republic of China 1,773 2,421 2,626 2,678 2,753 2,364 2,378 2,292 2,508 2,480 46 Republic of China (Taiwan) 19,588 11,246 11,491 10,593 10,471 10,265 9,985 10,277 10,362 9,299 47 Hong Kong 12,416 12,754 14,269 14,610 16,125 17,885 16,980 16,840 17,775 17,991 48 India 780 1,233 2,418 2,028 1,792 1,671 1,715 1,567 1,480 1,372 49 Indonesia 1,281 1,238 1,463 1,516 1,109 1,133 1,387 1,256 958 1,507 50 Israel 1,243 2,767 2,015 2,536 3,791 3,432 2,976 2,850 2,620 2,613 51 Japan 81,184 67,076 47,047 49,528 47,337 46,183 44,265 45,815 45,682 64,775 52 Korea (South) 3,215 2,287 2,587 2,886 3,016 3,132 2,839 3,288 3,644 3,692 53 Philippines 1,766 1,585 2,449 2,638 2,266 1,630 1,813 1,994 1,920 2,028 54 Thailand 2,093 1,443 2,252 3,330 3,147 6,990 4,586 4,017 4,624 4,517 55 Middle Eastern oil-exporting countries13 13,370 15,829 15,752 19,311 18,614 18,297 18,983 19,828 18,938 19,977 56 Other 17,491 16,965 16,071 14,024 14,766 15,101 16,642 14,870 14,703 13,883 57 3,824 4,630 4,825 4,886 4,864 5,430 5,810 5,516 5,314 5,592 58 Egypt 686 1,425 1,621 1,337 1,610 2,001 2,540 2,324 2,143 2,243 59 Morocco 78 104 79 90 88 77 87 85 93 100 60 South Africa 206 228 228 191 188 399 248 269 275 190 61 Zaire 86 53 31 35 27 26 29 17 24 14 62 Oil-exporting countries14 1,121 1,110" 1,082 1,428 1,277 1,257 1,232 1,211 1,090" 1,339 63 Other 1,648 1,710 1,784 1,805 1,674 1,670 1,674 1,610 1,689" 1,706 64 4,564 4,444 5,567 4,223 4,473 4,482 4,398 4,425 4,629" 4,088 65 Australia 3,867 3,807 4,464 3,100 3,575 3,211 3,192 3,066 3,322 2,927 66 Other 697 637 1,103 1,123 898 1,271 1,206 1,359 1,307" 1,161 67 Nonmonetary international and regional organizations 4,894 5,918 8,981 11,219 10,291 11,313 12,771" 11,281" 12,584 10,108 68 International15 3,947 4,390 6,485 8,813 7,543 8,400 9,796" 7,362" 9,361 6,973 69 Latin American regional 684 1,048 1,181 1,785 1,788 1,903 2,356 2,699 2,319 2,328 70 Other regional 263 479 1,315 621 960 1,010 619 1,220 904 807 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, Oman, 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 • January 1993 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 Mar. Apr. May June July Aug. Sept." 1 Total, all foreigners 534,492 511,543 514,318 512,876 506,854 504,682 511,951' 503,051' 479,275' 485,539 2 Foreign countries 530,630 506,750 508,035 506,503 502,065 499,881 505,957' 499,630' 474,886' 481,345 3 Europe 119,025 113,093 114,355 112,774 123,6% 120,739 126,207' 124,473' 118,695' 117,181 4 Austria 415 362 327 375 444 456 433 647 606' 341 5 Belgium and Luxembourg 6,478 5,473 6,158 7,005 6,%7 6,487 6,166 6,475 6,324 7,504 6 Denmark 582 497 686 737 871 994 1,436 951 901 1,007 7 Finland 1,027 1,047 1,912 1,321 1,475 1,536 1,516' 1,269' 1,081' 1,299 8 France 16,146 14,468 15,112 14,040 13,685 14,031 14,440 14,154 13,011 15,009 9 Germany 2,865 3,343 3,371 3,788 3,117 4,044 3,311 3,863 4,707 4,074 10 Greece 788 727 553 537 567 492 506 590 619 606 11 Italy 6,662 6,052 8,242 8,584 9,835 10,282 10,619 10,507 9,876 9,487 12 Netherlands 1,904 1,761 2,546 2,268 2,688 2,642 2,267 2,041 2,075 1,975 13 Norway 609 782 669 687 567 731 722 731 707 639 14 Portugal 376 292 344 368 361 398 367 382 387 383 15 Spain 1,930 2,668 1,881 3,355 3,726 2,687 3,880 3,730 2,590 3,304 16 Sweden 1,773 2,094 2,335 2,636 3,062 3,007 6,745 5,982 6,582 5,494 17 Switzerland 6,141 4,202 4,540 3,375 4,095 4,144 3,973 3,683 3,934 3,118 18 Turkey 1,071 1,405 1,063 943 927 1,130 976 1,173 1,001 984 19 United Kingdom 65,527 65,151 60,435 57,920 66,365 62,509 63,932 62,815 58,836 56,428 20 Yugoslavia 1,329 1,142 825 807 781 735 697 693 678 674 21 Others in Western Europe 1,302 597 789 879 821 894 771 1,227 956 1,206 22 U.S.S.R 1,179 530 1,970 2,659 2,824 2,948 3,035 3,153 3,280 3,199 23 Other Eastern Europe 921 499 597 490 518 592 415 407 544 450 24 Canada 15,451 16,091 15,094 15,468 15,121 16,460 16,401' 17,438' 15,153' 15,908 25 Latin America and Caribbean 230,438 231,506 246,064 251,703 239,307 238,502 243,532' 234,119' 217,576' 210,533 26 Argentina 9,270 6,967 5,869 5,788 5,949 5,956 5,3% 5,614 4,789' 4,559 27 Bahamas 77,921 76,525 87,173 88,866 82,118 84,668 83,141 74,816 62,615 58,522 28 Bermuda 1,315 4,056 2,191 3,649 6,377 4,283 4,951 6,099 6,302' 3,801 29 Brazil 23,749 17,995 11,845 12,375 12,321 12,183 12,020 12,186 12,286' 11,307 30 British West Indies 68,749 88,565 107,866 109,453 100,777 100,352 106,676' 104,188' 99,805' 99,285 31 Chile 4,353 3,271 2,805 2,779 2,922 3,055 3,227 3,118 3,218' 3,318 32 Colombia 2,784 2,587 2,425 2,339 2,322 2,328 2,304 2,398 2,322 2,475 33 Cuba 1 0 0 0 2 0 0 0 0 0 34 Ecuador 1,688 1,387 1,053 993 986 939 936 950 949 919 35 Guatemala 197 191 228 233 216 171 173 167 189 237 36 Jamaica 297 238 158 152 150 143 150 151 150 160 37 Mexico 23,376 14,851 16,567 17,315 17,367 16,900 16,455 16,331 16,532 17,284 38 Netherlands Antilles 1,921 7,998 1,207 1,181 1,265 904 920 941 966 1,045 39 Panama 1,740 1,471 1,560 1,704 1,834 1,926 2,199 2,025 2,053 1,924 40 Peru 771 663 739 644 715 666 719 708 708 731 41 Uruguay 929 786 599 604 685 717 765 749 799 921 42 Venezuela 9,652 2,571 2,516 2,188 2,010 2,046 2,215 2,360 2,585 2,654 43 Other 1,726 1,384 1,263 1,440 1,291 1,265 1,285 1,318 1,308' 1,391 44 Asia 157,474 138,722 125,288 119,631 116,770 117,259 112,406 115,961 116,514' 130,625 China 45 People's Republic of China 634 620 747 719 660 729 685 642 696 636 46 Republic of China (Taiwan) 2,776 1,952 2,087 1,969 2,008 1,808 1,778 1,965 1,982 2,053 47 Hong Kong 11,128 10,648 9,617 10,466 8,520 9,127 8,272 9,103 8,010 10,082 48 India 621 655 441 518 504 475 458 512 528 499 49 Indonesia 651 933 952 1,096 1,055 1,132 11,,008855 1,090 1,108 1,089 50 Israel 813 774 860 901 837 874 888888 901 920 800 51 Japan 111,300 90,699 84,833 74,615 72,116 74,430 69,269 71,159 71,491 83,223 52 Korea (South) 5,323 5,766 6,048 6,423 6,218 5,7% 5,927 6,063 6,201 6,248 53 Philippines 1,344 1,247 1,910 1,831 1,690 1,618 1,648 1,635 1,775 1,852 54 Thailand 1,140 1,573 1,713 1,599 1,618 1,703 1,756 1,705 1,680" 1,790 55 Middle Eastern oil-exporting countries4 10,149 10,749 8,284 12,291 14,562 13,453 14,505 14,323 14,783 14,613 56 Other 11,594 13,106 7,796 7,203 6,982 6,114 6,135 6,863 7,340 7,740 57 Africa 5,890 5,445 4,928 4,758 4,818 4,582 4,548 4,452 4,455' 4,333 58 Egypt 502 380 294 271 242 218 256 261 243 256 59 Morocco 559 513 575 547 547 529 527 4% 483 467 60 South Africa 1,628 1,525 1,235 1,176 1,239 1,128 1,070 1,047 1,066 1,055 6 6 1 2 O Za il i r e e x porting countries <5 1,64 1 8 6 1,48 1 6 6 1,29 4 8 1,16 4 4 1,16 4 0 1,16 4 2 1,15 4 9 1,15 4 7 1,13 4 c 1,06 4 7 63 Other 1,537 1,525 1,522 1,596 1,626 1,541 1,532 1,487 1,529 1,484 64 Other 2,354 1,892 2,306 2,169 2,353 2,339 2,863 3,187 2,493 2,765 65 Australia 1,781 1,413 1,665 1,388 1,424 1,197 1,725 1,937 1,463 1,765 66 Other 573 479 641 781 929 1,142 1,138 1,250 1,030 1,000 67 Nonmonetary international and regional organizations 3,862 4,793 6,283 6,373 4,789 4,801 5,994 3,421 4,389 4,194 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 Mar. Apr. May Juner Julyr Aug/ Sept." 1 Total 555555599999993333333,,,,,,,000000088888887777777 555555577777779999999,,,,,,,000000044444444444444 555555577777779999999,,,,,,,666666622222222222222 555555577777776666666,,,,,,,222222233333330000000 555555566666665555555,,,,,,,555555599999997777777 22 BBaannkkss'' ccllaaiimmss 555555533333334444444,,,,,,,444444499999992222222 555555511111111111111,,,,,,,555555544444443333333 555555511111114444444,,,,,,,333333311111118888888 555555511111112222222,,,,,,,888888877777776666666 506,854 504,682 555555511111111111111,,,,,,,999999955555551111111 503,051 479,275 485,539 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 66666660000000,,,,,,,555555511111111111111 44444441111111,,,,,,,999999900000000000000 33333337777777,,,,,,,111111133333330000000 33333336666666,,,,,,,888888899999992222222 34,585 34,637 33333335555555,,,,,,,999999944444446666666 32,926 32,249 31,411 44 OOwwnn ffoorreeiiggnn ooffffiicceess22 222222299999996666666,,,,,,,000000011111111111111 333333300000004444444,,,,,,,333333311111115555555 333333311111118888888,,,,,,,888888899999994444444 333333311111118888888,,,,,,,333333355555550000000 302,551 308,342 333333311111114444444,,,,,,,666666611111113333333 302,066 287,537 297,556 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111133333334444444,,,,,,,888888888888885555555 111111111111117777777,,,,,,,222222277777772222222 111111111111116666666,,,,,,,555555566666669999999 111111111111113333333,,,,,,,999999933333336666666 120,195 116,823 111111111111112222222,,,,,,,000000044444448888888 114,045 105,540 105,854 66 DDeeppoossiittss 77777778888888,,,,,,,111111188888885555555 66666665555555,,,,,,,222222255555553333333 66666669999999,,,,,,,111111166666668888888 66666667777777,,,,,,,000000000000007777777 70,703 70,205 66666663333333,,,,,,,666666677777778888888 63,004 56,364 54,486 77 OOtthheerr 55555556666666,,,,,,,777777700000000000000 55555552222222,,,,,,,000000011111119999999 44444447777777,,,,,,,444444400000001111111 44444446666666,,,,,,,999999922222229999999 49,492 46,618 44444448888888,,,,,,,333333377777770000000 51,041 49,176 51,368 88 AAllll ootthheerr ffoorreeiiggnneerrss 44444443333333,,,,,,,000000088888885555555 44444448888888,,,,,,,000000055555556666666 44444441111111,,,,,,,777777722222225555555 44444443333333,,,,,,,666666699999998888888 49,523 44,880 44444449999999,,,,,,,333333344444444444444 54,014 53,949 50,718 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,,,,,,,999999977777774444444 7777777,,,,,,,888888888888887777777 7777777,,,,,,,555555577777771111111 1144 DDoollllaarr ddeeppoossiittss iinn bbaannkkss aabbrrooaadd,, rreeppoorrtteedd bbyy nnoonnbbaannkkiinngg bbuussiinneessss eenntteerrpprriisseess iinn tthhee UUnniitteedd SSttaatteess 45,767 44,638 38,888 37,028 34,255 32,963 33,100 34,118 32,283 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. June 1 233,184 238,123 206,903 195,275 195,187 194,219 196,934 By borrower 2 Maturity of one year or less 172,634 178,346 165,985 160,395 162,515 161,266 162,473 3 Foreign public borrowers 26,562 23,916 19,305 17,601 21,047 20,241 20,491 4 All other foreigners 146,072 154,430 146,680 142,794 141,468 141,025 141,982 5 Maturity of more than one year 60,550 59,776 40,918 34,880 32,672 32,953 34,461 6 Foreign public borrowers 35,291 36,014 22,269 17,935 15,866 16,344 15,144 7 All other foreigners 25,259 23,762 18,649 16,945 16,806 16,609 19,317 By area Maturity of one year or less 8 Europe 55,909 53,913 49,184 51,211 51,875 52,608 54,977 9 Canada 6,282 5,910 5,450 5,682 6,474 6,926 7,946 10 Latin America and Caribbean 57,991 53,003 49,782 47,289 43,521 48,597 49,204 11 Asia 46,224 57,755 53,258 50,010 51,007 43,605 41,386 12 Africa 3,337 3,225 3,040 2,815 2,549 2,486 2,142 13 Mother3 2,891 4,541 5,272 33,,338888 77,,008899 77,,004444 66,,881188 Maturity of more than one year 14 Europe 4,666 4,121 3,859 3,733 3,883 4,355 6,786 15 Canada 1,922 2,353 3,290 3,706 3,546 3,250 3,173 16 Latin America and Caribbean 47,547 45,816 25,774 19,282 18,264 18,180 16,891 17 Asia 3,613 4,172 5,165 5,635 4,459 4,738 5,007 18 Africa 2,301 2,630 2,374 2,393 2,335 2,191 2,341 19 All other3 501 684 456 131 185 239 263 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 • January 1993 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. June 1 Total 346.3 338.8 321.7 331.5 317.8 325.4 320.8 335.5 341.5 347.5r 355.4r 2 G-10 countries and Switzerland 152.7 152.9 139.3 143.6 132.1 129.9 130.1 134.0 137.3 130.4r 135.6r 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 10.0" 11.9" 5 Germany 10.3 10.5 11.2 11.1 10.6 8.8 8.3 9.7 8.3 8.4 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 64.6 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 22.7 2211..22 25.4 14 Austria 1.5 1.5 1.5 1.6 1.4 1.4 1.1 1.0 .6 ..88 .8 15 Denmark 1.1 1.1 1.1 1.1 1.1 .9 1.2 .9 .9 .8 11..33 16 Finland 1.1 1.0 .9 .8 .7 1.0 .8 .7 .7 .8 ..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 7.1 8.3 8.3 7.7 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 11..33 1.9 23 South Africa 2.4 2.0 1.9 1.9 1.8 1.8 1.8 1.6 1.9 11..88 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 15.8 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 3.0 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 70.6 68.8r 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 4.8 4.6r 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 5 5 1 0 O Za th ir e e r Africa3 1 . . 0 1 1 . . 0 0 . . 8 0 . . 0 8 1 . . 0 0 . . 0 8 . . 0 8 .. .. 88 00 . . 0 7 . . 0 7 . . 0 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 56.9 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 6 6 0 1 P N a e n th am er a la 4 nds Antilles 2 1 . . 5 0 2 1 . . 3 4 2 1 . . 3 4 2 1 . . 2 5 7 1 . . 9 4 1 1 . . 5 1 1 1. . 3 4 3 1 . . 5 3 1 1. . 3 2 1 1. . 3 0 11 .. .. 88 44 62 Lebanon .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 ..11 63 Hong Kong 9.6 9.7 10.0 8.7 7.7 11.6 12.4 12.1 12.2 12.2 n.o1 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 36.4 39.9 44.6 48.2 48.0 49.1 1. The banking offices covered by these data are the U.S. offices and foreign $150 million equivalent in total assets, the threshold now applicable to all branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks. reporting branches. Offices not covered include (1) U.S. agencies and branches of foreign banks, and 2. Organization of Petroleum Exporting Countries, shown individually; other (2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, adjusted to exclude the claims on foreign branches held by a U.S. office or another Saudi Arabia, and United Arab Emirates); and Bahrain and Oman (not formally foreign branch of the same banking institution. The data in this table combine members of OPEC). foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims 3. Excludes Liberia. of U.S. offices in table 3.18 (excluding those held by agencies and branches of 4. Includes Canal Zone beginning December 1979. foreign banks and those constituting claims on own foreign branches). 5. Foreign branch claims only. Since June 1984, reported claims held by foreign branches have been reduced 6. Includes New Zealand, Liberia, and international and regional 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 1991 1992 TTyyppee aanndd aarreeaa oorr ccoouunnttrryy 11998888 11998899 11999900 Mar. June Sept. Dec. Mar. June 1 Total 32,952 38,764 44,988 41,787 40,472 41,916 41,505 43,495 43,757" 2 Payable in dollars 27,335 33,973 39,791 37,211 36,003 37,210 36,225 38,174 37,064r 3 Payable in foreign currencies 5,617 4,791 5,197 4,576 4,469 4,706 5,280 5,321 6,693r By type 4 Financial liabilities 14,507 17,879 20,010 18,606 18,260 20,350 20,242 21,664 21,585r i Payable in dollars 10,608 14,035 15,984 15,266 14,947 16,675 16,242 17,566 16,341r 6 Payable in foreign currencies 3,900 3,844 4,026 3,340 3,313 3,675 4,000 4,098 5,244r 7 Commercial liabilities 18,445 20,885 24,977 23,181 22,212 21,566 21,263 21,831 22,172r 8 Trade payables 6,505 8,070 10,683 8,793 8,569 8,313 8,310 8,914 9,500*" 9 Advance receipts and other liabilities 11,940 12,815 14,294 14,388 13,644 13,253 12,953 12,917 12,672r 10 Payable in dollars 16,727 19,938 23,807 21,945 21,056 20,535 19,983 20,608 20,723r 11 Payable in foreign currencies 1,717 947 1,170 1,236 1,157 1,031 1,280 1,223 l,449r By area or country Financial liabilities 12 Europe 9,962 11,660 10,346 9,559 9,634 11,403 10,814 12,071 12,643r 13 Belgium and Luxembourg 289 340 394 335 355 397 217 174 194 14 France 359 258 700 632 556 1,747 1,593 1,997 2,324 15 Germany 699 464 621 561 658 652 649 636 836 16 Netherlands 880 941 1,081 1,036 1,026 1,050 1,056 1,025 979 17 Switzerland 1,033 541 516 517 484 468 360 355 470 18 United Kingdom 6,533 8,818 6,395 5,810 5,932 6,521 6,294 6,977 6,964r 19 Canada 388 610 229 278 293 305 267 283 337 20 Latin America and Caribbean 839 1,357 4,153 4,255 3,808 3,883 4,307 4,047 3,298 21 Bahamas 184 157 371 392 375 314 537 3% 343 22 Bermuda 0 17 0 0 12 0 114 114 114 23 Brazil 0 0 0 0 0 6 6 8 10 24 British West Indies 645 724 3,160 3,293 2,816 2,961 3,047 2,915 2,157 25 Mexico 1 6 5 6 6 6 7 7 8 26 Venezuela 0 0 4 4 4 4 4 4 4 27 Asia 3,312 4,151 4,872 4,510 4,515 4,755 4,796 5,168 5,218r 28 Japan 2,563 3,299 3,637 3,432 3,339 3,605 3,557 3,906 4,122r 29 Middle East oil-exporting countries 3 2 5 1 4 19 13 13 10 30 Africa 2 2 2 2 9 3 6 7 0 31 Oil-exporting countries3 0 0 0 0 7 2 4 6 0 32 All other4 4 100 409 2 2 1 52 88 89 Commercial liabilities 33 Europe 7,319 9,071 10,310 9,666 8,607 8,084 7,808 7,491 7,131r 34 Belgium and Luxembourg 158 175 275 261 245 225 248 256 240r 35 France 455 877 1,218 1,203 1,185 992 830 671 659r 36 Germany 1,699 1,392 1,270 1,383 1,040 911 944 878 69lr 37 Netherlands 587 710 844 729 729 751 709 574 6051 38 Switzerland 417 693 775 661 580 492 488 482 400r 39 United Kingdom 2,079 2,620 2,792 2,755 2,289 2,217 2,310 2,444 2,404r 40 Canada 1,217 1,124 1,261 1,251 1,208 1,011 990 1,094 l,077r 41 Latin America and Caribbean 1,090 1,224 1,672 1,589 1,619 1,512 1,352 1,701 l,803r 42 Bahamas 49 41 12 14 5 14 3 13 8 43 Bermuda 286 308 538 494 504 450 310 493 409* 44 Brazil 95 100 145 216 180 211 219 230 212 45 British West Indies 34 27 30 35 49 46 107 108 73 46 Mexico 217 323 475 343 358 291 304 375 475r 47 Venezuela 114 164 130 129 119 102 94 168 219 48 Asia 6,915 7,550 9,483 8,595 8,752 8,855 9,330 9,889 10,436r 49 Japan 3,094 2,914 3,651 3,423 3,411 3,363 3,720 3,548 3,534r 30 Middle Eastern oil-exporting countries' J 1,385 1,632 2,016 1,543 1,657 1,780 1,498 1,591 1,778 51 Africa 576 886 844 617 596 836 713 644 775 52 Oil-exporting countries 202 339 422 211 226 357 327 253 389 53 Other4 1,328 1,030 1,406 1,464 1,431 1,268 1,070 1,012 95C 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 5. Revisions include a reclassification of transactions, which also affects the United Arab Emirates (Trucial States). totals for Asia and the grand totals. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 International Statistics • January 1993 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1991 1992 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998888 11998899 11999900 Mar. June Sept. Dec. Mar. June 1 Total 33,805 33,173 35,365 35,578 37,124 38,345 42,386 41,746 41,344r 2 Payable in dollars 31,425 30,773 32,777 33,279 35,037 35,982 39,829 39,135 38,390r 3 Payable in foreign currencies 2,381 2,400 2,589 2,299 2,087 2,363 2,557 2,611 2,954r By type 4 Financial claims 21,640 19,297 19,891 19,746 20,904 22,566 25,320 25,029 24,291r 5 Deposits 15,643 12,353 13,727 13,115 12,576 16,227 17,177 16,819 14,986r 6 Payable in dollars 14,544 11,364 12,552 12,052 11,758 15,182 16,253 15,626 13,648r 7 Payable in foreign currencies 1,099 989 1,175 1,063 817 1,045 924 1,193 l,338r 8 Other financial claims 5,997 6,944 6,164 6,631 8,328 6,339 8,143 8,210 9,305r 9 Payable in dollars 5,220 6,190 5,297 5,960 7,656 55,,664411 7,322 7,521 8,643 10 Payable in foreign currencies 777 754 866 671 673 669988 821 689 662r 11 Commercial claims 12,166 13,876 15,475 15,832 16,220 15,779 17,066 16,717 17,053r 12 Trade receivables 11,091 12,253 13,657 13,843 14,120 13,429 14,389 14,168 14,594r 13 Advance payments and other claims 1,075 1,624 1,817 1,989 2,100 2,350 2,677 2,549 2,459r 14 Payable in dollars 11,660 13,219 14,927 15,266 15,623 15,159 16,254 15,988 16,099r 15 Payable in foreign currencies 505 657 548 566 597 620 812 729 954r By area or country Financial claims 16 Europe 10,278 8,463 9,651 10,640 11,875 13,131 13,523 14,083 13,125r 17 Belgium and Luxembourg 18 28 76 86 74 76 13 12 25 18 France 203 153 371 208 271 255 312 277 786 19 Germany 120 152 367 312 298 434 342 290 381 20 Netherlands 348 238 265 380 429 420 385 727 732 21 Switzerland 217 153 357 422 433 580 591 682 779 22 United Kingdom 9,039 7,496 7,971 9,016 10,222 10,997 11,226 11,507 8,691r 23 Canada 2,325 1,904 2,934 1,929 2,017 2,172 2,674 2,744 2,537 24 Latin America and Caribbean 8,160 8,020 6,201 6,278 5,926 6,289 7,793 6,836 6,990 25 Bahamas 1,846 1,890 1,090 825 457 652 775588 400 523 26 Bermuda 19 7 3 6 4 19 88 12 12 27 Brazil 47 224 68 68 127 137 192 191 181 28 British West Indies 5,763 5,486 4,635 4,949 4,957 5,106 6,300 5,748 5,804 29 Mexico 151 94 177 179 161 176 321 318 343 30 Venezuela 21 20 25 28 29 32 40 34 32 31 Asia 623 590 860 568 747 619 962 1,009 1,280 32 Japan 354 213 523 246 398 277 385 423 712 33 Middle East oil-exporting countries'1 5 8 8 11 4 3 5 3 4 34 Africa 106 140 37 62 64 61 57 60 57 35 Oil-exporting countries3 10 12 0 3 1 1 1 0 0 36 All other4 148 180 207 269 275 294 311 297 302 Commercial claims 37 Europe 5,181 6,209 7,044 7,060 7,464 6,884 7,865 7,809 8,027r 38 Belgium and Luxembourg 189 242 212 227 220 190 192 181 252r 39 France 672 964 1,240 1,273 1,402 1,330 1,539 1,552 l,551r 40 Germany 669 696 807 874 958 858 934 929 9051 41 Netherlands 212 479 555 604 707 641 643 645 661r 42 Switzerland 344 313 301 325 296 258 295 327 399r 43 United Kingdom 1,324 1,575 1,775 1,639 1,817 1,807 2,078 2,069 2,1601 44 Canada 983 1,091 1,074 1,213 1,241 1,232 1,169 1,167 l,122r 45 Latin America and Caribbean 2,241 2,184 2,375 2,334 2,433 22,,449944 2,590 2,564 2,636r 46 Bahamas 36 58 14 15 16 88 11 11 9 47 Bermuda 230 323 246 231 247 255 263 272 291r 48 Brazil 299 297 326 327 309 385 418 361 431 49 British West Indies 22 36 40 49 43 37 41 45 32r 50 Mexico 461 508 661 653 710 741 828 889 847r 51 Venezuela 227 147 192 181 195 1% 202 206 248r 52 Asia 2,993 3,570 4,127 4,357 4,201 4,282 4,552 4,326 4,433r 53 Japan 946 1,199 1,460 1,816 1,645 1,808 1,861 1,770 l,778r 54 Middle Eastern oil-exporting countries 453 518 460 498 501 4% 622 636 606r 55 Africa 435 429 488 394 428 431 418 417 41^ 56 Oil-exporting countries3 122 108 67 68 63 80 95 75 70 57 Other4 333 393 367 474 454 456 472 434 416r 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 S a e n p . t - . Mar. Apr. May June July Aug.r Sept.p U.S. corporate securities STOCKS 1 Foreign purchases 173,293 211,204 161,918 18,857 17,536 18,664 16,525 18,547 13,174 13,884 2 Foreign sales 188,419 200,116 171,322 19,423 18,034 18,602 17,537 18,764 14,838 17,024 3 Net purchases or sales (-) -15,126 11,088 -9,404 -566 -498 62 -1,012 -217 -1,664 -3,140 4 Foreign countries -15,197 10,520 -9,413 -588 -531 27 -1,170 -234 -1,619 -3,049 5 Europe -8,479 50 -6,878 -88 -730 278 -1,184 -964 -1,089 -1,675 6 France -1,234 9 -1,035 -27 -217 -121 -148 10 -46 -234 7 Germany -367 -63 -214 -36 -48 149 -4 -14 -26 -105 8 Netherlands -397 -227 -442 -17 -38 76 -217 -14 -54 -107 9 Switzerland -2,866 -131 86 260 90 122 -10 -55 -150 -189 10 United Kingdom -2,980 -354 -4,722 -237 -334 -11 -691 -741 -652 -868 11 Canada 886 3,845 1,414 410 412 230 74 131 -59 -278 12 Latin America and Caribbean -1,330 2,177 903 -322 45 43 -109 -24 -24 -90 13 Middle East1 -2,435 -134 121 121 -95 85 51 4 -11 136 14 Other Asia -3,477 4,255 -5,201 -886 -158 -557 141 373 -442 -1,062 15 Japan -2,891 1,179 -4,214 -496 -318 -401 35 174 -301 -96 16 Africa -63 153 56 4 -1 20 -1 -7 -1 14 17 Other countries -298 174 172 173 -4 -72 -142 253 7 -94 18 Nonmonetary international and regional organizations 71 568 9 22 33 35 158 17 -45 -91 BONDS2 19 Foreign purchases 118,764 153,096 158,641 17,429 16,722 17,539 16,691 18,343r 20,349 17,097 20 Foreign sales 102,047 125,634 128,352 14,398 11,666 13,222 12,407 16,31 r 16,620 14,587 21 Net purchases or sales (—) 16,717 27,462 30,289 3,031 5,056 4,317 4,284 2,032r 3,729 2,510 22 Foreign countries 17,187 27,592 29,929 2,942 4,861 4,388 4,205 2,153r 3,714 2,375 23 Europe 10,079 13,115 14,547 1,183 2,003 1,920 1,420 1,029* 1,589 1,670 24 France 373 847 1,021 -34 363 -45 364 161 -5 161 25 Germany -377 1,577 1,793 116 391 67 11 -37 -13 387 26 Netherlands 172 482 206 -15 -122 123 64 177 22 58 27 Switzerland 284 656 -285 124 -393 -40 -53 -13 -94 -1 28 United Kingdom 10,383 8,933 10,811 745 1,543 1,496 847 760" 1,520 1,241 29 Canada 1,906 1,623 -255 -72 87 -68 -111 67 -100 -2 30 Latin America and Caribbean 4,328 2,672 6,938 1,443 572 1,022 619 676r 878 548 31 Middle East1 3 1,787 2,018 349 338 455 376 239 284 -5 32 Other Asia 1,120 8,459 6,669 75 1,778 1,088 1,904 231 1,084 171 33 Japan 727 5,767 -467 -316 687 324 740 -710 -738 -590 34 Africa 96 52 106 28 19 6 -6 22 1 -7 35 Other countries -344 -116 -94 -64 64 -35 3 -111 -22 0 36 Nonmonetary international and regional organizations -471 -131 360 89 195 -71 79 -121 15 135 Foreign securities 37 Stocks, net purchases or sales (-) -9,205 -31,967 -19,808 -2,801 -2,295 -913 72 —3,241r -2,904 -2,850 38 Foreign purchases 122,641 120,598 112,681 12,977 11,336 13,871 14,604 13,485r 9,752 13,551 39 Foreign sales 131,846 152,565 132,489 15,778 13,631 14,784 14,532 16,726" 12,656 16,401 40 Bonds, net purchases or sales (-) -22,412 -14,828 -12,978 -357 -1,318 -2,767 -1,626 -4,747" 194 -1,259 41 Foreign purchases 314,645 330,311 347,876 33,045 30,421 33,109 40,145 43,226" 45,900 52,271 42 Foreign sales 337,057 345,139 360,854 33,402 31,739 35,876 41,771 47,973" 45,706 53,530 43 Net purchases or sales (-), of stocks and bonds -31,617 -46,795 -32,786 -3,158 -3,613 -3,680 -1,554 -7,988' -2,710 -4,109 44 Foreign countries -28,943 -46,711 -36,068 -3,492 -4,768 -3,706 -1,938 -8,847' -2,797 -4,130 45 Europe -8,443 -34,452 -21,866 -605 -2,972 -163 -1,437 -5,790" -1,087 -3,051 46 Canada -7,502 -7,004 -4,764 -513 -904 -710 -852 -2,212 130 151 47 Latin America and Caribbean -8,854 759 -2,000 -479 -845 -1,278 -556 1,622" -437 83 48 -3,828 -7,350 -7,157 -1,596 122 -1,235 372 -2,459 -1,375 -1,658 49 Africa -137 -9 -85 1 9 -99 7 14 11 -13 50 Other countries -180 1,345 -196 -300 -178 -221 528 -22 -39 358 51 Nonmonetary international and regional organizations -2,673 -84 3,282 334 1,155 26 384 859 87 21 1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, 3. In a July 1989 merger, the former stockholders of a U.S. company received Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). $5,453 million in shares of the new combined U.K. company. This transaction is 2. Includes state and local government securities and securities of U.S. not reflected in the data. government agencies and corporations. Also includes issues of new debt securities sold abroad by U.S. corporations organized to finance direct investments abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 International Statistics • January 1993 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1992 Country or area 1990 1991 J S a e n p . t - . Mar. Apr. May June July Aug.r Sept.p Transactions, net purchases or sales (-) during period1 1 Estimated total2 18,927 19,865 18,615 -9,464 6,558 -7,924 14,448 -l,862r 7,003 -6,046 2 Foreign countries2 18,764 19,687 16,677 -10,063 7,579 -6,945 11,758 -2,286r 7,357 -6,251 3 Europe2 18,455 8,663 4,562 -4,679 3,207 -7,302 3,828 -2,445r 3,531 -4,703 4 Belgium and Luxembourg 10 523 1,411 -91 21 289 -49 331 80 -25 5 Germany2 5,880 -4,725 2,770 -242 441 329 824 -829 255 900 6 Netherlands 1,077 -3,735 -3,906 245 -219 -338 227 -1,046 367 -239 7 Sweden 1,152 -663 -1,330 102 -123 -3 372 -26 -1,289 -843 8 Switzerland2 112 1,007 -1,721 -411 10 -579 3 -703r -87 292 9 United Kingdom -1,259 6,218 10,107 -1,663 2,820 -5,867 1,664 212r 3,762 -32 10 Other Western Europe 11,463 10,024 -3,202 -2,629 257 -1,099 587 -581r 428 -4,761 11 Eastern Europe 13 13 433 10 0 -34 200 197 15 5 12 Canada -4,627 -3,019 1,290 -460 185 2,627 47 2,520 900 -4,281 13 Latin America and Caribbean 14,734 10,285 -4,055 -1,361 2,780 -320 3,589 -2,869 -1,563 -1,479 14 Venezuela 33 10 346 73 -124 -1% -149 216 60 31 15 Other Latin America and Caribbean 3,943 4,179 -1,520 -262 3,723 -2,472 1,795 -589 -758 -2,537 16 Netherlands Antilles 10,757 6,097 -2,881 -1,172 -819 2,348 1,943 -2,496 -865 1,027 17 Asia -10,952 3,367 17,414 -3,321 1,363 -2,406 4,129 l,783r 4,603 4,005 18 Japan -14,785 -4,081 5,063 -3,044 657 1,085 1,638 2,221 2,378 2,448 19 Africa 313 689 1,021 125 193 40 92 149 56 59 20 Other 842 -298 -3,555 -367 -149 416 73 -1,424 -170 148 21 Nonmonetary international and regional organizations 163 178 1,938 599 -1,021 -979 2,690 424 -354 205 22 International 287 -358 1,852 801 -762 -747 2,421 365 -160 -35 23 Latin American regional -2 -72 248 0 74 -4 127 -68 -75 201 MEMO 24 Foreign countries2 18,764 19,687 16,677 -10,063 7,579 -6,945 11,758 -2,286r 7,357 -6,251 25 Official institutions 23,218 1,190 5,133 -3,136 1,712 -2,685 5,294 —767r 697 -4,483 26 Other foreign2 -4,453 18,496 11,544 -6,927 5,867 -4,260 6,464 -1,51? 6,660 -1,768 Oil-exportine countries 27 Middle EasP -387 -6,822 3,676 233 556 -3,061 947 856 1,093 750 28 Africa 0 239 11 0 15 0 -56 0 0 4 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 Nov. 30, 1992 Rate on Nov. 30, 1992 Rate on Nov. 30, 1992 Country Country Country Percent e M ffe o c n t t i h v e Percent e M ffe o c n t t i h v e e M ffe o c n t t i h v e Austria.. 8.0 Oct. 1992 Germany... 8.25 Sept. 1992 Norway 17.0 Nov. 1992 Belgium . 7.75 Oct. 1992 Italy 13.0 Nov. 1992 Switzerland 6.0 Sept. 1992 Canada.. 8.82 Nov. 1992 Japan 3.25 July 1992 United Kingdom 12.0 Sept. 1992 Denmark 9.5 Dec. 1991 Netherlands 7.75 Oct. 1992 France2.. 9.10 Nov. 1992 1. Rates shown are mainly those at which the central bank either discounts or 2. Since Feb. 1981, the rate has been that at which the Bank of France makes advances against eligible commercial paper or government securities for discounts Treasury bills for seven to ten days. commercial banks or brokers. For countries with more than one rate applicable to such discounts or advances, the rate shown is the one at which it is understood that the central bank transacts the largest proportion of its credit operations. 3.27 FOREIGN SHORT-TERM INTEREST RATES1 Averages of daily figures, percent per year 1992 TTyyppee oorr ccoouunnttrryy 11998899 11999900 11999911 May June July Aug. Sept. Oct. Nov. 1 Eurodollars 9.16 8.16 5.86 3.84 3.87 3.40 3.33 3.15 3.30 3.67 2 United Kingdom 13.87 14.73 11.47 10.00 9.94 10.10 10.27 9.86 8.23 7.16 3 Canada 12.20 13.00 9.07 6.60 6.03 5.58 5.15 5.33 7.57 7.63 4 Germany 7.04 8.41 9.15 9.70 9.66 9.69 9.79 9.37 8.85 8.84 5 Switzerland 6.83 8.71 8.01 8.77 9.04 8.67 8.09 7.20 6.28 6.44 6 Netherlands 7.28 8.57 9.19 9.43 9.45 9.50 9.73 9.23 8.63 8.66 7 France 9.27 10.20 9.49 9.83 9.98 10.11 10.27 10.51 10.82 9.58 8 Italy 12.44 12.11 12.04 12.39 13.38 15.54 15.27 17.54 15.52 14.38 9 Belgium 8.65 9.70 9.30 9.51 9.50 9.54 9.71 9.44 8.70 8.64 10 Japan 5.39 7.75 7.33 4.72 4.60 4.32 3.87 3.89 3.85 3.77 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 • January 1993 3.28 FOREIGN EXCHANGE RATES1 Currency units per dollar, except as noted 1992 Country/currency unit 1989 1990 1991 June July Aug. Sept. Oct. 1 Australia/dollar2 79.186 78.069 77.872 75.561 74.507 72.479 72.255 71.481 68.984 2 Austria/schilling 13.236 11.331 11.686 11.068 10.500 10.199 10.214 10.436 11.168 3 Belgium/franc 39.409 33.424 34.195 32.362 30.717 29.824 29.917 30.581 32.661 4 Canada/dollar 1.1842 1.1668 1.1460 1.1960 1.1924 1.1907 1.2225 1.2453 1.2674 5 China, P.R./yuan 3.7673 4.7921 5.3337 5.4893 5.4564 5.4417 5.5048 5.5486 5.6134 6 Denmark/krone 7.3210 6.1899 6.4038 6.0573 5.7409 5.5851 5.6203 5.7278 6.1166 7 Finland/markka 4.2963 3.8300 4.0521 4.2846 4.0803 3.9773 4.4764 4.7096 5.0615 8 France/franc 6.3802 5.4467 5.6468 5.2940 5.0321 4.9119 4.9378 5.0370 5.3706 9 Germany/deutsche mark 1.8808 1.6166 1.6610 1.5726 1.4914 1.4475 1.4514 1.4851 1.5875 10 Greece/drachma 162.60 158.59 182.63 190.69 182.89 179.12 182.70 192.50 206.48 11 Hong Kong/dollar 7.8008 7.7899 7.7712 7.7343 7.7341 7.7318 7.7298 7.7298 7.7348 12 India/rupee 16.213 17.492 22.712 28.519 28.564 28.464 28.476 28.477 28.474 13 Ireland/pound2 141.80 165.76 161.39 169.80 178.76 183.26 181.90 177.19 166.17 14 Italy/lira 1,372.28 1,198.27 1,241.28 1,189.52 1,129.83 1,100.00 1,176.21 1,309.64 1,364.45 15 Japan/yen 138.07 145.00 134.59 126.84 125.88 126.23 122.60 121.17 123.88 16 Malaysia/ringgit 2.7079 2.7057 2.7503 2.5187 2.4999 2.4977 2.5029 2.5044 2.5227 17 Netherlands/guilder 2.1219 1.8215 1.8720 1.7719 1.6819 1.6322 1.6348 1.6717 1.7862 18 New Zealand/dollar2 59.793 59.619 57.832 54.201 54.609 54.057 54.112 53.943 51.9% 19 Norway/krone 6.9131 6.2541 6.4912 6.1493 5.8581 5.7120 5.8116 6.0562 6.4714 20 Portugal/escudo 157.53 142.70 144.77 130.79 126.24 124.98 127.86 132.33 141.71 21 Singapore/dollar 1.9511 1.8134 1.7283 1.6240 1.6142 1.6077 1.5988 1.6081 1.6338 22 South Africa/rand 2.6214 2.5885 2.7633 2.8077 2.7577 2.7629 2.8037 2.8923 2.9959 23 South Korea/won 674.29 710.64 736.73 793.60 789.93 792.56 788.76 786.79 787.09 24 Spain/peseta 118.44 101.96 104.01 99.02 94.88 93.05 98.19 105.74 113.83 25 Sri Lanka/rupee 35.947 40.078 41.200 43.941 44.014 44.050 44.159 44.276 44.404 26 Sweden/krona 6.4559 5.9231 6.0521 5.6792 5.4084 5.2745 5.3685 5.6006 6.2528 27 Switzerland/franc 1.6369 1.3901 1.4356 1.4250 1.3347 1.2966 1.2780 1.3176 1.4291 28 Taiwan/dollar 26.407 26.918 26.759 24.770 24.783 25.120 25.227 25.278 25.405 29 Thailand/baht 25.725 25.609 25.528 25.400 25.293 25.265 25.209 25.253 25.462 30 United Kingdom/pound 163.82 178.41 176.74 185.51 191.77 194.34 184.65 165.29 152.68 MEMO 31 United States/dollar3 98.60 89.84 85.91 82.57 81.98 85.03 90.04 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 December 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 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Index to Statistical Tables References are to pages A3-A68 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Demand deposits—Continued Agricultural loans, commercial banks, 21, 22 Ownership by individuals, partnerships, and Assets and liabilities (See also Foreigners) corporations, 23 Banks, by classes, 19-22 Turnover, 16 Domestic finance companies, 35 Depository institutions Federal Reserve Banks, 11 Reserve requirements, 9 Financial institutions, 27 Reserves and related items, 4, 5, 6, 13 Foreign banks, U.S. branches and agencies, 23 Deposits (See also specific types) Automobiles Banks, by classes, 4, 19-22, 23 Consumer installment credit, 38 Federal Reserve Banks, 5,11 Production, 47, 48 Turnover, 16 Discount rates at Reserve Banks and at foreign central banks and foreign countries (See Interest rates) BANKERS acceptances, 10, 24, 25 Discounts and advances by Reserve Banks (See Loans) Bankers balances, 19-22. (See also Foreigners) Dividends, corporate, 34 Bonds (See also U.S. government securities) New issues, 34 EMPLOYMENT, 45 Rates, 25 Eurodollars, 25 Branch banks, 23, 55 Business activity, nonfinancial, 44 FARM mortgage loans, 37 Business expenditures on new plant and equipment, 34 Federal agency obligations, 5, 10, 11, 12, 30, 31 Business loans (See Commercial and industrial loans) Federal credit agencies, 32 Federal finance CAPACITY utilization, 46 Debt subject to statutory limitation, and types and ownership Capital accounts of gross debt, 29 Banks, by classes, 19 Receipts and outlays, 27, 28 Federal Reserve Banks, 11 Treasury financing of surplus, or deficit, 27 Central banks, discount rates, 67 Treasury operating balance, 27 Certificates of deposit, 25 Federal Financing Bank, 27, 32 Commercial and industrial loans Federal funds, 7, 18, 21, 22, 23, 25, 27 Commercial banks, 17, 21 Federal Home Loan Banks, 32 Weekly reporting banks, 21-23 Federal Home Loan Mortgage Corporation, 32, 36, 37 Commercial banks Federal Housing Administration, 32, 36, 37 Assets and liabilities, 19-22 Federal Land Banks, 37 Commercial and industrial loans, 17, 19, 20, 21, 22, 23 Federal National Mortgage Association, 32, 36, 37 Consumer loans held, by type and terms, 38 Federal Reserve Banks Loans sold outright, 21 Condition statement, 11 Nondeposit funds, 18 Discount rates (See Interest rates) Real estate mortgages held, by holder and property, 37 U.S. government securities held, 5, 11, 12, 29 Time and savings deposits, 4 Federal Reserve credit, 5, 6, 11, 12 Commercial paper, 24, 25, 35 Federal Reserve notes, 11 Condition statements (See Assets and liabilities) Federally sponsored credit agencies, 32 Construction, 44,49 Finance companies Consumer installment credit, 38 Assets and liabilities, 35 Consumer prices, 44,46 Business credit, 35 Consumption expenditures, 52, 53 Loans, 38 Corporations Paper, 24, 25 Nonfinancial, assets and liabilities, 34 Financial institutions Profits and their distribution, 34 Loans to, 21, 22, 23 Security issues, 33, 65 Selected assets and liabilities, 27 Cost of living (See Consumer prices) Float, 51 Credit unions, 38 Flow of funds, 39,41,42,43 Currency in circulation, 5, 14 Foreign banks, assets and liabilities of U.S. branches and Customer credit, stock market, 26 agencies, 22, 23 Foreign currency operations, 11 Foreign deposits in U.S. banks, 5, 11, 21, 22 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, 19-23 Claims on, 55, 57, 60, 61, 62, 64 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A71 Foreigners—Continued REAL estate loans Liabilities to, 22, 54, 55, 57, 58, 63, 65, 66 Banks, by classes, 17, 21, 22, 37 Financial institutions, 27 GOLD Terms, yields, and activity, 36 Certificate account, 11 Type of holder and property mortgaged, 37 Stock, 5, 54 Repurchase agreements, 7, 18, 21, 22, 23 Government National Mortgage Association, 32, 36, 37 Reserve requirements, 9 Gross domestic product, 51 Reserves Commercial banks, 19 Depository institutions, 4, 5, 6, 13 HOUSING, new and existing units, 49 Federal Reserve Banks, 11 U.S. reserve assets, 54 INCOME, personal and national, 44, 51, 52 Residential mortgage loans, 36 Industrial production, 44, 47 Retail credit and retail sales, 38, 39, 44 Installment loans, 38 Insurance companies, 29, 37 SAVING Interest rates Flow of funds, 39, 41, 42,43 Bonds, 25 National income accounts, 51 Consumer installment credit, 38 Savings and loan associations, 37, 38, 39. (See also SAIF-insured Federal Reserve Banks, 8 institutions) Foreign central banks and foreign countries, 67 Savings Association Insurance Funds (SAIF) insured institutions, 27 Money and capital markets, 25 Savings banks, 27, 37, 38 Mortgages, 36 Savings deposits (See Time and savings deposits) Prime rate, 24 Securities (See also specific types) International capital transactions of United States, 53-67 Federal and federally sponsored credit agencies, 32 International organizations, 57, 58, 60, 63, 64 Foreign transactions, 65 Inventories, 51 New issues, 33 Investment companies, issues and assets, 34 Prices, 26 Investments (See also specific types) Special drawing rights, 5, 11, 53, 54 Banks, by classes, 19, 20, 21, 22, 23, 27 State and local governments Commercial banks, 4, 17, 19-22 Deposits, 21, 22 Federal Reserve Banks, 11, 12 Holdings of U.S. government securities, 29 Financial institutions, 37 New security issues, 33 Ownership of securities issued by, 21, 22 LABOR force, 45 Rates on securities, 25 Life insurance companies (See Insurance companies) Stock market, selected statistics, 26 Loans (See also specific types) Stocks {See also Securities) Banks, by classes, 19-22 New issues, 33 Commercial banks, 4, 17, 19-22 Prices, 26 Federal Reserve Banks, 5, 6, 8, 11, 12 Financial institutions, 27, 37 Student Loan Marketing Association, 32 Insured or guaranteed by United States, 36, 37 TAX receipts, federal, 28 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, 23 Margin requirements, 26 Trade, foreign, 54 Member banks (See also Depository institutions) Treasury cash, Treasury currency, 5 Federal funds and repurchase agreements, 7 Treasury deposits, 5, 11, 27 Reserve requirements, 9 Treasury operating balance, 27 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, 22 Money and capital market rates, 25 Treasury deposits at Reserve Banks, 5, 11, 27 Money stock measures and components, 4, 14 U.S. government securities Mortgages (See Real estate loans) Bank holdings, 19-22, 23, 29 Mutual funds, 34 Dealer transactions, positions, and financing, 31 Mutual savings banks (See Thrift institutions) Federal Reserve Bank holdings, 5, 11, 12, 29 Foreign and international holdings and NATIONAL defense outlays, 28 transactions, 11, 29, 66 National income, 51 Open market transactions, 10 Outstanding, by type and holder, 27, 29 OPEN market transactions, 10 Rates, 24 U.S. international transactions, 53-67 PERSONAL income, 52 Utilities, production, 48 Prices Consumer and producer, 44, 50 VETERANS Administration, 36, 37 Stock market, 26 Prime rate, 24 WEEKLY reporting banks, 21-23 Producer prices, 44, 50 Wholesale (producer) prices, 44, 50 Production, 44, 47 Profits, corporate, 34 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Federal Reserve Board of Governors and Official Staff ALAN GREENSPAN, Chairman WAYNE D. ANGELL DAVID W. MULLINS, JR., Vice Chairman EDWARD W. KELLEY, JR. OFFICE OF BOARD MEMBERS DIVISION OF INTERNATIONAL FINANCE JOSEPH R. COYNE, Assistant to the Board EDWIN M. TRUMAN, Staff Director DONALD J. WINN, Assistant to the Board LARRY J. PROMISEL, Senior Associate Director THEODORE E. ALLISON, Assistant to the Board for Federal CHARLES J. SIEGMAN, Senior Associate Director Reserve System Affairs DALE W. HENDERSON, Associate Director LYNN S. FOX, Special Assistant to the Board DAVID H. HOWARD, Senior Adviser WINTHROP P. HAMBLEY, Special Assistant to the Board DONALD B. ADAMS, Assistant Director BOB STAHLY MOORE, Special Assistant to the Board PETER HOOPER III, Assistant Director DIANE E. WERNEKE, Special Assistant to the Board KAREN H. JOHNSON, Assistant Director RALPH W. SMITH, JR., Assistant Director LEGAL DIVISION DIVISION OF RESEARCH AND STATISTICS J. VIRGIL MATTINGLY, JR., General Counsel SCOTT G. ALVAREZ, Associate General Counsel MICHAEL J. PRELL, Director RICHARD M. ASHTON, Associate General Counsel EDWARD C. ETTIN, Deputy Director OLIVER IRELAND, Associate General Counsel WILLIAM R. JONES, Associate Director KATHLEEN M. O'DAY, Associate General Counsel THOMAS D. SIMPSON, Associate Director MARYELLEN A. BROWN, Assistant to the General Counsel LAWRENCE SLIFMAN, Associate Director DAVID J. STOCKTON, Associate Director OFFICE OF THE SECRETARY MARTHA BETHEA, Deputy Associate Director 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 LEVON H. GARABEDIAN, Assistant Director SUPERVISION AND REGULATION (Administration) RICHARD SPILLENKOTHEN, Director STEPHEN C. SCHEMERING, Deputy Director DIVISION OF MONETARY AFFAIRS DON E. KLINE, Associate Director 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, Associate Director JACK P. JENNINGS, Assistant Director DOLORES S. SMITH, Associate Director MICHAEL G. MARTINSON, Assistant Director MAUREEN P. ENGLISH, Assistant Director RHOGER H PUGH, Assistant Director IRENE SHAWN MCNULTY, 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

A73 JOHN P. LAWARE SUSAN M. PHILLIPS LAWRENCE B. LINDSEY OFFICE OF DIVISION OF RESERVE BANK OPERATIONS STAFF DIRECTOR FOR MANAGEMENT AND PAYMENT SYSTEMS S. DAVID FROST, Staff Director CLYDE H. FARNSWORTH, JR., Director WILLIAM SCHNEIDER, Special Assignment: DAVID L. ROBINSON, Deputy Director (Finance and Project Director, National Information Center Control) PORTIA W. THOMPSON, Equal Employment Opportunity 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

A74 Federal Reserve Bulletin • January 1993 Federal Open Market Committee and Advisory Councils FEDERAL OPEN MARKET COMMITTEE MEMBERS ALAN GREENSPAN, Chairman E. GERALD CORRIGAN, Vice Chairman WAYNE D. ANGELL EDWARD W. KELLEY, JR. DAVID W. MULLINS, JR. EDWARD G. BOEHNE JOHN P. LAWARE SUSAN M. PHILLIPS SILAS KEEHN LAWRENCE B. LINDSEY GARY H. STERN ROBERT D. MCTEER, JR. ALTERNATE MEMBERS J. ALFRED BROADDUS, JR. JERRY L. JORDAN ROBERT T. PARRY ROBERT P. FORRESTAL JAMES H. OLTMAN 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 of the 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. CRUTCHFTELD, 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

A75 CONSUMER ADVISORY COUNCIL COLLEEN D. HERNANDEZ, Kansas City, Missouri, Chairman DENNY D. DUMLER, Denver, Colorado, Vice Chairman BARRY A. ABBOTT, San Francisco, California MICHAEL M. GREENFIELD, St. Louis, Missouri JOHN R. ADAMS, Philadelphia, Pennsylvania JOYCE HARRIS, Madison, Wisconsin JOHN A. BAKER, Atlanta, Georgia GARY S. HATTEM, New York, New York VERONICA E. BARELA, Denver, Colorado JULIA E. HILER, Marietta, Georgia MULUGETTA BIRRU, Pittsburgh, Pennsylvania HENRY JARAMILLO, Belen, New Mexico GENEVIEVE BROOKS, Bronx, New York KATHLEEN E. KEEST, Boston, Massachusetts TOYE L. BROWN, Boston, Massachusetts EDMUND MIERZWINSKI, Washington, D.C. CATHY CLOUD, Washington, D.C. BERNARD F. PARKER, JR., Detroit, Michigan 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 THRIFT INSTITUTIONS ADVISORY COUNCIL LYNN W. HODGE, Greenwood, South Carolina, President DANIEL C. ARNOLD, Houston, Texas, Vice President JAMES L. BRYAN, Richardson, Texas PRESTON MARTIN, San Francisco, California VANCE W. CHEEK, Johnson City, Tennessee RICHARD D. PARSONS, New York, New York BEATRICE D'AGOSTINO, Somerville, New Jersey THOMAS R. RICKETTS, Troy, Michigan THOMAS J. HUGHES, Merrifield, Virginia EDMOND M. SHANAHAN, Chicago, Illinois RICHARD A. LARSON, West Bend, Wisconsin WOODBURY C. TITCOMB, Worcester, Massachusetts Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Federal Reserve Board Publications For ordering assistance, write PUBLICATIONS SERVICES, Monetary Policy and Reserve Requirements Handbook. MS-138, Board of Governors of the Federal Reserve System, $75.00 per year. Washington, DC 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: period covered, release date, number of pages, and price. FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. December 1986. 264 pp. $10.00 each. 1981 October 1982 239 pp. $ 6.50 1982 December 1983 266 pp. $ 7.50 FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALY- 1983 October 1984 264 pp. $11.50 SIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each. 1984 October 1985 254 pp. $12.50 1985 October 1986 231 pp. $15.00 1986 November 1987 288 pp. $15.00 CONSUMER EDUCATION PAMPHLETS 1987 October 1988 272 pp. $15.00 Short pamphlets suitable for classroom use. Multiple copies are 1988 November 1989 256 pp. $25.00 available without charge. 1980-89 March 1991 712 pp. $25.00 1990 November 1991 185 pp. $25.00 Consumer Handbook on Adjustable Rate Mortgages 1991 November 1992 215 pp. $25.00 Consumer Handbook to Credit Protection Laws SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES A Guide to Business Credit for Women, Minorities, and Small OF CHARTS. Weekly. $30.00 per year or $.70 each in the Businesses United States, its possessions, Canada, and Mexico. Else- How to File A Consumer Credit Complaint where, $35.00 per year or $.80 each. Series on the Structure of the Federal Reserve System THE FEDERAL RESERVE ACT and other statutory provisions The Board of Governors of the Federal Reserve System affecting the Federal Reserve System, as amended through The Federal Open Market Committee August 1990. 646 pp. $10.00. Federal Reserve Bank Board of Directors REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL Federal Reserve Banks RESERVE SYSTEM. Organization and Advisory Committees ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— A Consumer's Guide to Mortgage Lock-Ins Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp. A Consumer's Guide to Mortgage Settlement Costs Vol. II (Irregular Transactions). 1969. 116 pp. Each vol- A Consumer's Guide to Mortgage Refinancings ume $2.25; 10 or more of same volume to one address, Home Mortgages: Understanding the Process and Your Right $2.00 each. to Fair Lending Introduction to Flow of Funds. 1980. 68 pp. $1.50 each; 10 or Making Deposits: When Will Your Money Be Available? more to one address, $1.25 each. When Your Home is on the Line: What You Should Know Federal Reserve Regulatory Service. Looseleaf; updated at About Home Equity Lines of Credit least monthly. (Requests must be prepaid.) Consumer and Community Affairs Handbook. $75.00 per year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

A78 Maps of the Federal Reserve System I H H K ^M 1 BOSTON MINNEAPOLIS • 2 " i t? 1122 CHICAGO • 3- • NEW YORK •PHILADELPHIA • SAN FRANCISCO 10 44 • I KANSAS CITYB ST. Louis RICHMOND 5 p i l i f ^ ' l^ £ 6 • ATLANTA DALLAS ALASKA HAWAII 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

A79 1-A 2-B 3-C 4-D 5-E Baltimore Pittsburgh ^X?A NY i< // CCTT Charlotte •Cincinnati MAH Buffalo •• •• \\ KY CT NNJJ NNYY BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 7-G 8-H • Nashville WL "I Louisville IA Detroit • Jacksonville . L! IN AR Memphis New Orleans Littl?^ MS Rock Miami ATLANTA CHICAGO ST. LOUIS 9-1 MT . I ND • Helena 1 MN MI • WI 1 SD MINNEAPOLIS 1100--JJ 12-L // NNEE CCOO Omaha® DDeennvveerr 1 M • D ALASKA / ^Seattle /• • X j— Portland Oklahoma City • OR < KANSAS CITY CA ^^^ / NV 7 11-K UT • A / Salt Lake City AZ ' • Los Angel es San Antonio HAWAn DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 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 Jerome H. Grossman Richard F. Syron To be announced 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 Jane G. Pepper Edward G. Boehne James M. Mead William H. Stone, Jr. CLEVELAND* 44101 A. William Reynolds Jerry L. Jordan To be announced Sandra Pianalto Cincinnati 45201 Marvin Rosenberg Charles A. Cerino1 Pittsburgh 15230 Robert P. Bozzone Harold J. Swart1 RICHMOND* 23219 Anne Marie Whittemore J. Alfred Broaddus, Jr. Henry J. Faison Jimmie R. Monhollon Baltimore 21203 To be announced Ronald B. Duncan1 Charlotte 28230 To be announced 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 Donald E. Boomershine Fred R. Herr1 Jacksonville 32231 Joan D. Ruffier James D. Hawkins1 Miami 33152 R. KirkLandon James T. Curry III Nashville 37203 James R. Tuerff Melvyn K. Purcell New Orleans 70161 Lucimarian Roberts 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 Robert H. Quenon Thomas C. Melzer Janet McAfee Weakley James R. Bowen Little Rock 72203 To be announced Karl W. Ashman Louisville 40232 To be announced Howard Wells Memphis 38101 To be announced Ray Laurence MINNEAPOLIS 55480 Delbert W. Johnson Gary H. Stern Gerald A. Rauenhorst Thomas E. Gainor Helena 59601 To be announced 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. Hollo way David J. France Omaha 68102 Sheila Griffin Harold L. Shewmaker DALLAS 75201 Leo E. Linbeck, Jr. Robert D. McTeer, Jr. Cece Smith Tony J. Salvaggio El Paso 79999 To be announced Sammie C. Clay Houston 77252 To be announced Robert Smith, III1 San Antonio 78295 To be announced Thomas H. Robertson SAN FRANCISCO 94120 James A. Vohs Robert T. Parry Judith M. Runstad 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