Federal Reserve Bulletin, 1993-06

VOLUME 79 • NUMBER 6 • JUNE 1993 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 • Richard Spillenkothen • 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 569 RESERVE REQUIREMENTS: 606 INDUSTRIAL PRODUCTION AND HISTORY, CURRENT PRACTICE, CAPACITY UTILIZATION AND POTENTIAL REFORM FOR MARCH 1993 Industrial production was unchanged in Laws requiring banks and other depository March, after having shown strong gains since institutions to hold a certain fraction of their October; at 112.0 percent of its 1987 average, deposits in reserve, in safe, secure assets, have total industrial production was 4.1 percent been a part of our nation's banking history for above its year-ago level. Total industrial many years. Over time, however, the rationale capacity utilization declined 0.2 percentage for these requirements has changed as the point, to 79.9 percent. financial system has evolved and as knowledge about how reserve requirements affect this system has grown. This article reviews 609 STATEMENT TO THE CONGRESS the basic concepts and current rules regarding John P. LaWare, member, Board of Goverreserve requirements; provides a history of nors, discusses some of the factors influencing reserve requirements in the United States, recent national and regional trends in bank including recent experience with cuts in these lending as well as changes in the composition requirements; and discusses proposals for of banks' balance sheets and says that the reforming the system of reserve requirements steps that banks have taken in recent years to in light of this recent experience and that of rebuild their balance sheets have been considother countries that have reduced their erable and may well augur an increase in the requirements. availability of bank credit, before the Subcommittee on Economic Growth and Credit Formation of the House Committee on Banking, 590 INDUSTRIAL PRODUCTION, CAPACITY, Finance and Urban Affairs, April 2, 1993. AND CAPACITY UTILIZATION SINCE 1987 614 ANNOUNCEMENTS The Federal Reserve recently revised its index of industrial production and the related mea- Publication of documents on market risk and sures of capacity and utilization. Compared bank capital by the Basle Committee on Bankwith the previous index, the revised index ing Supervision. shows that manufacturing grew more slowly Issuance of final rule amending risk-based from 1987 until the onset of recession late in capital guidelines for state member banks and 1990 and then recovered more rapidly, albeit bank holding companies. unevenly. The index of industrial capacity was also revised downward. Capacity utilization, Revisions to the staff commentary to Regulathe ratio of output to capacity, was about the tion Z. same for most of 1987-91 as it was before the Revisions to the List of Marginable OTC revision. However, the more rapid recovery of Stocks and to the List of Foreign Margin revised production from the trough and slower Stocks. growth of revised capacity led to an upward revision of utilization in late 1992 and early Release of quarterly table of factors to adjust 1993. interest income of section 20 companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

617 LEGAL DEVELOPMENTS A70 INDEX TO STATISTICAL TABLES Various bank holding company, bank service A72 BOARD OF GOVERNORS AND STAFF corporation, and bank merger orders; and pending cases. A74 FEDERAL OPEN MARKET COMMITTEE AND STAFF; ADVISORY COUNCILS A1 FINANCIAL AND BUSINESS STATISTICS These tables reflect data available as of A76 FEDERAL RESERVE BOARD April 28, 1993. PUBLICATIONS A78 SCHEDULE OF RELEASE DATES FOR A3 GUIDE TO TABULAR PRESENTATION PERIODIC RELEASES A4 Domestic Financial Statistics A44 Domestic Nonfinancial Statistics A80 MAPS OF THE FEDERAL RESERVE A53 International Statistics SYSTEM A69 GUIDE TO STATISTICAL RELEASES AND A82 FEDERAL RESERVE BANKS, BRANCHES, SPECIAL TABLES AND OFFICES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reserve Requirements: History, Current Practice, and Potential Reform Joshua N. Feinman, of the Board's Division of poraneous link between reserves and Ml deposits. Monetary Affairs, prepared this article. Jana Although the Federal Reserve is no longer pursuing Deschler and Christoph Hinkelmann provided this type of short-run control of money, reserve research assistance. requirements still play an important role in the conduct of open market operations, which are now Laws requiring banks and other depository institu- aimed at influencing general monetary and credit tions to hold a certain fraction of their deposits in conditions by varying the cost and availability of reserve, in very safe, secure assets, have been a part reserves to the banking system. By helping to of our nation's banking history for many years. The ensure a stable, predictable demand for reserves, rationale for these requirements has changed over reserve requirements better enable the Federal time, however, as the country's financial system Reserve to achieve desired reserve market condihas evolved and as knowledge about how reserve tions by controlling the supply of reserves; in so requirements affect this system has grown. Before doing, they help prevent potentially disruptive flucthe establishment of the Federal Reserve System, tuations in the money market. reserve requirements were thought to help ensure Reserve requirements are not costless, however. the liquidity of bank notes and deposits, particu- On the contrary, requiring depositories to hold a larly during times of financial strains. As bank runs certain fraction of their deposits in reserve, either and financial panics continued periodically to as cash in their vaults or as non-interest-bearing plague the banking system despite the presence balances at the Federal Reserve, imposes a cost on of reserve requirements, it became apparent that the private sector equal to the amount of forgone these requirements really had limited usefulness as interest on these reserves—or at least on the fraca guarantor of liquidity. Since the creation of the tion of these reserves that banks hold only because Federal Reserve System as a lender of last resort, of legal requirements and not because of the needs capable of meeting the liquidity needs of the entire of their customers. The higher the level of reserve banking system, the notion of and need for reserve requirements, the greater the costs imposed on the requirements as a source of liquidity has all but private sector; at the same time, however, higher vanished. Instead, reserve requirements have reserve requirements may smooth the implementaevolved into a supplemental tool of monetary pol- tion of monetary policy and damp volatility in the icy, a tool that reinforces the effects of open market reserves market. operations and discount policy on overall monetary The Federal Reserve could resolve this policy and credit conditions and thereby helps the Federal dilemma by paying interest on required reserves, or Reserve to achieve its objectives. at least on the part of these reserves that banks While useful as an auxiliary policy tool, reserve would not hold were it not for legal requirements. requirements also have important implications for Paying an explicit, market-based rate of return on the efficacy of the Federal Reserve's primary tool, these funds would effectively eliminate much of open market operations. In the early 1980s, for the costs of reserve requirements without jeopardizexample, when open market operations were ing the stable demand for reserves that is needed geared toward fostering fairly precise, short-run for open market operations and for the smooth control of narrowly defined money (Ml), reserve functioning of the reserves market. requirements were designed to help facilitate this The Federal Reserve Board has long supported control by establishing a relatively stable, contem- legislation that would explicitly allow interest to be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

570 Federal Reserve Bulletin • June 1993 paid on the balances that depositories are required to maintain reserves against transaction deposits, to hold in reserve—though not on the cash they which include demand deposits, negotiable order hold in their vaults, which is assumed to be held of withdrawal accounts, and other highly liquid primarily to meet customer needs—but to no avail.1 funds.2 Reserves against these deposits can take the Opposition has typically centered on the adverse form either of currency on hand (vault cash) or implications such a move would have for Treasury balances at the Federal Reserve. The Federal revenue. If the Federal Reserve paid interest on Reserve may vary the percentage of transaction required balances, its net earnings would decline, deposits that must be kept in reserve, but only and because it turns the vast majority of its earn- within fairly narrow limits prescribed by law; ings over to the Treasury, the Treasury's revenues requirements may also be imposed on certain types would decline as well. On the other hand, eliminat- of nontransaction accounts, though again only ing the costs of reserve requirements would remove within specified limits.3 At present, the required one government-mandated impediment to deposit- reserve ratio on nontransaction accounts is zero, taking and lending through the banking system. while the requirement on transaction deposits is Recently, the costs of depository intermediation 10 percent, which is near the legal minimum. have risen sharply because of higher deposit insur- Most depositories are able to satisfy their entire ance premiums, stifFer capital requirements, more reserve requirement with vault cash, which they stringent standards for interbank lending, and other hold primarily to meet the liquidity needs of their regulatory burdens. Much of these increased costs customers and would likely hold even in the have likely been passed on to the customers of absence of reserve requirements. For these institudepositories in the forms of higher loan rates and tions, reserve requirements are essentially costless. lower deposit rates; paying interest on reserves About 3,000 depositories, however, have vault cash would be one way of countering some of these holdings that are insufficient to satisfy their entire government-mandated increases in costs. reserve requirement. To meet their requirements, these institutions must also maintain deposits, called required reserve balances, at the Federal Reserve. BASIC CONCEPTS AND CURRENT RULES OF RESERVE REQUIREMENTS Under current regulations, all depository Reserve Requirements as a Tax institutions—commercial banks, savings banks, thrift institutions, and credit unions—are required Some uncertainty exists as to whether the Federal Reserve Act permits interest to be paid on reserves. In fact, the Federal Reserve has never actually paid 1. See, for example, "Statement by Arthur F. Burns, Chairman, Board of Governors of the Federal Reserve System, before the Subcommittee on Financial Institutions of the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, June 20, 1977," Federal Reserve Bulletin, vol. 63 (July 1977), pp. 636-43; "State- 2. For a formal definition of depository institutions and transacment by J. Charles Partee, member, Board of Governors, before the tion accounts, see Federal Reserve Regulation D (Reserve Require- Subcommittee on Financial Institutions Supervision, Regulation ments of Depository Institutions), sections 204.1 and 204.2. and Insurance of the Committee on Banking, Finance and Urban 3. At present, required reserve ratios may be set between 8 per- Affairs, U.S. House of Representative, October 27, 1983," Federal cent and 14 percent on transaction accounts in excess of $46.8 mil- Reserve Bulletin, vol. 69 (November 1983), pp. 840-52; and lion, and between 0 and 9 percent on nonpersonal savings deposits, "Statement by Alan Greenspan, Chairman, Board of Governors of nonpersonal time deposits with original maturities of eighteen the Federal Reserve System, before the Subcommittee on Domestic months or longer, and net Eurocurrency liabilities. Transaction Monetary Policy of the Committee on Banking, Finance and Urban deposits of less than $46.8 million, in the so-called low reserve Affairs, U.S. House of Representatives, February 19, 1992," Gov- tranche, are reservable at 3 percent, while the first $3.8 million of ernment Printing Office, Serial No. 102-98 (1992) pp. 42-43. The transaction deposits at each depository are exempt from reserve Federal Reserve has also requested the lifting of the prohibition on requirements altogether. The Federal Reserve cannot alter the cutthe payment of interest on demand deposits. See, in particular, the offs for the low reserve tranche or the exemption, which are statement by J. Charles Partee, October 27, 1983. adjusted each year according to a formula provided by law. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reserve Requirements: History, Current Practice, and Potential Reform 571 interest on required reserve balances.4 Requiring medium-sized businesses, have few alternatives depositories to hold idle, non-interest-bearing bal- outside of the depository system, these borrowers ances is essentially like taxing these institutions in may ultimately bear some of the burden of the an amount equal to the interest they could have reserve tax in the form of higher costs of credit. earned on these balances in the absence of reserve requirements. This forgone interest, or reserve "tax," directly affects only the depository system Current Estimates of the Reserve Tax and its customers, and not other parts of the financial system. Hence, it creates an artificial incentive Table 1 presents estimates of the current dollar for depositors and borrowers to bypass the deposi- magnitude of the reserve tax. In the fourth quarter tory system, and in so doing it may redirect credit of 1992, the required reserve balances of all deposflows in ways that impair the efficiency of resource itories totaled $23 V2 billion. Because many of the allocation. In particular, by distorting the relative financial transactions in our economy flow through price of transaction accounts at depositories, the these reserve accounts, even in the absence of reserve tax may induce a smaller level of transac- reserve requirements depositories would likely hold tion services than what would be ideal for the some balances at the Federal Reserve as a buffer functioning of the economy. The reserve tax also against the normal uncertainties surrounding paycreates an incentive for depositories to expend ment flows. Thus, $23 V2 billion should be considresources trying to minimize required reserves by ered an upper bound on the amount of balances fashioning new financial products aimed solely at truly idled by reserve requirements in the fourth delivering transactions services without creating quarter of 1992. Even if banks had invested all of reservable liabilities. these funds, moreover, the gains would probably As is true for most taxes, determining precisely not have been large because short-term interest who bears the burden of the reserve tax is difficult. rates are currently at relatively low levels. Using a That determination depends in a complicated way federal funds rate of 3 percent as a proxy for the on the degree of competitive pressure in the mar- potential earnings rate on idle balances, the lost kets for deposits and loans and the associated sensi- interest income due to reserve requirements totals tivities of borrowers, lenders, and depositories to only about $700 million, at an annual rate, based changes in prices and interest rates. One thing is on $23 V2 billion of balances. About $600 million certain, however: Depositories and their sharehold- of this would have accrued to commercial banks ers do not bear all of the costs but rather pass at and their customers; even in the unlikely event that least some of them on to their customers in the banks were able to retain all of this increased forms of lower deposit rates and higher loan rates. revenue, it would have boosted their pretax return In compensating-balance arrangements, for exam- on assets for 1992 by only about 2 basis points ple, in which customers maintain non-interest- compared with an actual pretax rate of return on bearing deposits as compensation for bank ser- assets of a little more than 130 basis points. vices, the customers typically "pay" the reserve On an after-tax basis, the earnings would be even tax by holding additional balances. Similarly, to the smaller because depositories and their customers extent that some borrowers, such as small and would have to pay extra taxes on this additional income. Regardless of the precise figure, however, 4. The Federal Reserve Board has, however, at least in the past, taken the position that it has the discretion to pay interest on 1. Burden of reserve requirements, 1992:Q4 reserves, though individual members of the Congress opposed such Billions of dollars payments at the time of the enactment of the Federal Reserve Act in 1913 and again as recently as 1978. For details on a Federal Type of Required Forgone institution reserve balances interest Reserve proposal to pay interest on required reserve balances in 1978, see Federal Reserve Bulletin, vol. 64 (July 1978), All depositories 23.5 .7 pp. 605-10. For congressional reaction to this proposal, see, "Monetary Control and the Membership Problem," Hearings before the Commercial banks 21.1 .6 Thrift institutions 2.4 .1 Committee on Banking, Finance and Urban Affairs on H.R. 13476, H.R. 13477, H.R. 12706, and H.R. 14072, 95 Cong. 2 Sess. U.S. 1. Forgone interest is annualized, based on a federal funds rate of House of Representatives (GPO, 1978), p. 781. 3 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

572 Federal Reserve Bulletin • June 1993 if the Federal Reserve paid interest on all required and New England entered into voluntary redempreserve balances, the private sector would enjoy a tion arrangements as early as 1820. Under these net increase in after-tax income, whereas the Trea- arrangements, one bank agreed to redeem another sury would see its net revenues reduced. Of course, bank's notes at par, provided that the issuing bank if interest rates were higher, the burden of reserve maintained a sufficient deposit of specie (gold or its requirements and the private-sector cost savings equivalent) on account with the redeeming bank as and government revenue losses stemming from backing for the notes. In essence, these deposits paying interest on required reserve balances would represented the first required reserves. The primary be commensurately larger than the amounts shown purpose of these reserves was to increase the in table 1. The distortions to resource allocation liquidity of bank notes by ensuring their convertwould be more pronounced as well. Indeed, the ibility into specie. Although in subsequent years burden of reserve requirements has, at times, been some states began to require banks to maintain considerably larger than it is now, as a result of reserves against their notes, and a few even began both higher interest rates and higher reserve to require reserves against deposits, most states still requirements. had no legal reserve requirements when the Civil Because reserve requirements are a tax on the War broke out in 1861. private sector that may distort the optimal allocation of resources in the financial sector, the question arises as to why these requirements were The National Bank Era imposed in the first place. The next section traces the historical evolution of reserve requirements and Reserve requirements were first established at the their rationales to see how our current system national level in 1863 with the passage of the developed. Subsequently, several options for National Bank Act. This act provided banks an reforming the current system to eliminate the opportunity to organize under a national charter reserve tax without jeopardizing the effective con- and created a network of institutions whose notes duct of monetary policy are analyzed. could circulate more easily throughout the country. In exchange for this charter, banks had to hold a 25 percent reserve against both notes and HISTORICAL REVIEW OF RESERVE deposits—a much higher requirement than that REQUIREMENTS AND THEIR RATIONALES faced by most state banks. Although banks in "redemption" cities—designated in the act as cities Reserve requirements have played a part in our where notes were likely to accumulate for nation's financial system from the earliest days— redemption—had to hold reserves entirely in the long before the creation of a national currency or a form of "lawful" money (specie or greenbacks), central bank. banks outside these cities could maintain 60 percent of their reserves in interest-bearing balances at Early State Laws and Practices banks in redemption cities. Reserve requirements were seen as necessary for The first commercial banks in this country were ensuring the liquidity of national bank notes and chartered by the states and were not required to thereby reinforcing their acceptability as a medium keep reserves either against deposits, which were of exchange throughout the country. Concentrating little used at the time, or against their own, more reserves in areas where demands for liquidity were ubiquitous, bank notes. In the absence of a national likely to be most acute was thought to be the surest currency, bank notes were commonly used as a means of promoting the widespread use and accepmedium of exchange, though high transaction costs tance of national bank notes. At the same time, of redeeming the notes and limited information allowing banks outside redemption cities to earn about the underlying solvency of the issuer gener- interest on a portion of their reserves made the ally confined the use of any individual bank's notes burden of reserve requirements less onerous for to a small geographic area. To facilitate the more banks that faced more limited demands for widespread use of their notes, banks in New York liquidity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reserve Requirements: History, Current Practice, and Potential Reform 573 The federal government had a keen interest in effect on the economy, the banking system as a seeing the use of national bank notes flourish whole could not without selling securities or callbecause, in addition to reserve requirements, ing in loans, thereby squeezing credit supplies, national bank notes were also required to be driving up interest rates, and precipitating a general backed by holdings of government bonds, which financial crisis. were needed to finance the Civil War. To make the issuance of national bank notes less costly, reserve requirements against these notes were lowered for Creation of the Federal Reserve System banks outside redemption cities from 25 percent to 15 percent in 1864, and banks in redemption cities The Federal Reserve Act of 1913 created a system outside New York City were allowed to meet half of Reserve Banks that could act as lenders of last of their requirements with interest-bearing balances resort by accommodating the temporary liquidity at a bank in New York. Still dissatisfied with the needs of the banking system and thereby alleviatrate of growth of national bank notes, the Congress ing the periodic financial disruptions that plagued imposed a tax on state bank notes in 1865, effec- the national bank era. By discounting eligible assets tively guaranteeing the primacy of national bank of member banks, Federal Reserve Banks provided notes as a medium of exchange. Indeed, in subse- a ready, accessible source of liquidity that had been quent years, these notes began to circulate widely missing from the national banking system. throughout the country and were rarely redeemed. Although the creation of the Federal Reserve With their convertibility no longer in question, System seemingly eliminated any remaining liquidreserve requirements against national bank notes ity rationale for reserve requirements, banks that were lifted in 1873. Requirements remained in were members of the System were still required to place on deposits, however, which were just emerg- hold reserves, though requirements were lower than ing as an accepted means of payment. As time those previously in effect for most national banks. wore on, the role of deposits expanded, and they In the original Federal Reserve Act, banks had eventually supplanted bank notes as the preferred to hold in reserve different percentages of their medium of exchange for many transactions, with demand deposits—deposits that could be withtheir convertibility supposedly reinforced by drawn on demand—depending on whether they reserve requirements. were classified as central reserve city banks A series of bank runs and financial panics in the (18 percent), reserve city banks (15 percent), or late nineteenth and early twentieth centuries made country banks (12 percent).5 In addition, all memit patently clear that reserve requirements could ber banks faced a 5 percent requirement on time not really guarantee the convertibility of deposits deposits.6 Member banks outside central reserve for the entire banking system. In fact, reserve cities were not allowed, however, to meet part of requirements were really no help at all in providing their requirements with interest-bearing balances at liquidity during a panic because a given dollar of a bank in a central reserve city. Starting in 1917, reserves could not be used simultaneously to meet moreover, member banks could no longer use vault a customer's demand for cash and to satisfy reserve cash to satisfy reserve requirements: They had to requirements. What was lacking from the national banking system or, for that matter, from any fractional reserve system—one with reserve requirements of less than 100 percent—was a mechanism for accommodating temporary variations in the 5. Originally, the rationale for these distinctions among cities was a carryover from the designation of redemption cities in the public's demand for liquidity by adjusting the national bank era. In 1913, banks in New York, Chicago, and quantity of reserves available to the entire banking St. Louis were classified as central reserve city banks, and banks in system. Absent such a mechanism, systemic panics about fifty other cities were designated as reserve city banks. In 1922, St. Louis was reclassified as a reserve city, and in 1962 the and crises stemming from fluctuating liquidity central reserve city designation was eliminated altogether. Over the needs were all too common. Though an individual years, the number of reserve cities changed somewhat as some bank might be able to meet a temporary surge in cities were added and others deleted by the Federal Reserve Board. 6. For details on the history of changes in reserve requirements the demand for cash with little attendant adverse since the inception of the Federal Reserve, see the appendix. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

574 Federal Reserve Bulletin • June 1993 meet their requirements entirely with non-interest- In practice, however, reserve requirements were bearing balances at a Federal Reserve Bank. of little help in containing the rapid credit growth On net, therefore, the effective burden of reserve that occurred in the late 1920s. During this period, requirements in terms of forgone interest was the primary tool used by the Federal Reserve to somewhat higher for member banks than for non- influence credit conditions was the discount rate. member banks, particularly for those outside cen- Because this rate was generally kept below market tral reserve cities. To help offset this increased rates and only marginal administrative pressure burden, in 1917 reserve requirements on demand was used to dissuade banks from availing themdeposits were pared further, to 13 percent, 10 per- selves of the discount window, banks had an incencent, and 7 percent respectively for the three types tive to borrow the reserves they needed to finance of member banks, and requirements on time depos- their rapidly expanding assets from the Federal its were reduced from 5 percent to 3 percent for all Reserve, and they responded vigorously to this members. These reductions, coupled with the bene- incentive. Throughout much of the 1920s, discount fits of access to Federal Reserve credit at the dis- window borrowings were more than half of total count window and free Federal Reserve services— Federal Reserve assets. With the Federal Reserve such as check clearing and currency distribution— effectively accommodating much of the increased were considered sufficient encouragement for credit expansion, reserve requirements placed no banks to become members of the System, despite significant constraint on lending. In addition, the the higher reserve requirement burden that such Federal Reserve had no authority to raise reserve membership often entailed. In later years, however, requirements even if it had wanted to make them a the burden of reserve requirements would become more binding constraint on credit expansion. more acute, making membership less desirable for During the Great Depression, as market interest many institutions. rates plunged and loan demand all but dried up, reserve requirements were obviously not needed to Reserve Requirements as a Means of curtail credit growth. In fact, through much of this Influencing Credit Conditions period, banks held large quantities of reserves in excess of their reserve requirements, suggesting In the 1920s and 1930s, the Federal Reserve gradu- that reserve requirements were not in any way ally began to expand its original, reactive role as constraining credit expansion. The Federal Reserve lender of last resort and guarantor of the liquidity was concerned that these large excess reserves of the banking system and adopted a more proac- could eventually be used to support an overly rapid tive posture in attempting to influence the nation's buildup of deposits and loans that could ultimately credit conditions. As the emphasis of monetary prove inflationary. Therefore, it excercised its policy evolved, so too did the rationale for reserve newly acquired powers under the Banking Act of requirements. In fact, by 1931, the Federal Reserve 1935 and doubled the required reserve ratios on had officially abandoned the view that reserves both demand and time deposits, thereby effectively were a necessary or useful source of liquidity for absorbing much of extant excess reserves.8 By deposits, arguing instead that reserve requirements 1938, however, as evidence mounted that the provided a means for influencing the expansion of nascent economic recovery was imperiled, the Fedbank credit.7 Specifically, the Federal Reserve eral Reserve moved to trim reserve requirements believed that requiring banks to hold reserves on both demand and time deposits, hoping to free against the additional deposits needed to fund each up additional funds for lending. increment of new loans could help restrain an overly rapid expansion of credit. 8. The Thomas Amendment of 1933 first granted authority to the Federal Reserve Board to raise reserve requirements, subject to presidential approval, provided that a national emergency was 7. See "Member Bank Reserves—Report of the Committee on declared. The Banking Act of 1935 eliminated the need for presi- Bank Reserves of the Federal Reserve System," in Board of Gover- dential approval or the declaration of an emergency, though it also nors of the Federal Reserve System, 19th Annual Report, 1932 precluded the Board from reducing requirements below the levels (Board of Governors, 1933), pp. 260-85. then in force or from more than doubling those requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reserve Requirements: History, Current Practice, and Potential Reform 575 In the years surrounding World War II, monetary Reserve requirements were also imposed on policy considerations became subordinate to other, newly emerging liabilities that were the funcfinancing the government debt. During this period, tional equivalents of deposits. For example, as the Federal Reserve abandoned an active monetary banks started to rely more on Eurodollar borrowpolicy role and chose as its highest priority to ings as a funding source in the late 1960s, partly in accommodate the government's financing needs by an effort to circumvent existing reserve requirebuying Treasury securities at low interest rates. ments, the Federal Reserve imposed marginal requirements on these liabilities and adjusted these Postwar Issues: Membership Attrition and requirements periodically throughout the 1970s. Monetary Control The imposition of reserve requirements on these and other managed liabilities was especially useful In 1951, the Federal Reserve resumed an active, in the late 1970s, as the Federal Reserve aggresindependent monetary policy. In subsequent years, sively sought to curb the expansion of money and reserve requirements were adjusted numerous credit and thereby ease price pressures. times, usually to reinforce or supplement the effects Throughout this period, reserve requirements of open market operations and discount policy also had important implications for membership in on overall monetary and credit conditions. In the the Federal Reserve System. Since membership short run, however, reserve requirements placed was optional for state-chartered banks, some of little constraint on the expansion of deposits these institutions began to leave the System in because the Federal Reserve largely accom- the 1950s to take advantage of the lower reserve modated any such expansion through open mar- requirements imposed by most state regulatory ket operations. Over time, though, if the Federal authorities, some of whom also allowed banks to Reserve sought to reduce the availability of money meet part of their requirements with interestand credit by providing reserves less generously earning assets. The Federal Reserve feared that if through open market operations, it could and enough banks left the System, changes in the cost often did augment its actions by raising reserve and availability of reserves to the remaining memrequirements. ber banks might have a diminished effect on over- The use of reserve requirements as a supplemen- all monetary and credit conditions, thus undermintal tool of monetary policy was particularly preva- ing the efficacy of monetary policy. lent in the 1960s and 1970s, as the Federal Reserve sought to influence the expansion of money and Change in vault cash accounting. To reduce the credit in part by manipulating bank funding costs. burden of reserve requirements and stem the ero- As financial innovation spawned new sources of sion of membership in the System, legislation was bank funding, the Federal Reserve began to adapt enacted allowing banks to resume using vault cash reserve requirements to these new financial prod- to satisfy their reserve requirements. This change, ucts and often changed requirements on the specific which was phased in beginning December 1959, bank liabilities that were most frequently used provided the greatest relief to small banks, which as marginal sources of funding. As banks began tended to hold relatively large quantities of vault to rely more heavily on the issuance of large- cash to meet their customers' liquidity needs. Perdenomination time deposits (CDs) to fund their mitting this vault cash to be used to meet reserve asset acquisitions in the 1960s, for example, the requirements reduced the amount of non-interest- Federal Reserve began periodically to alter reserve bearing balances these banks had to hold at the requirements on these instruments, thereby affect- Federal Reserve. Because smaller banks were most ing their cost of issuance and, thus, the supply of apt to leave the System, it was hoped that this credit through banks. It sometimes supplemented reform would help stanch membership attrition. its actions by placing a marginal reserve require- Although larger banks tended to benefit less from ment on large time deposits—that is, an additional this rule change, they were less likely to leave the requirement applied only to each new increment of System because they often reaped the greatest these deposits. benefits from free Federal Reserve services, par- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

576 Federal Reserve Bulletin • June 1993 1. Burden of reserve requirements, 1959-92' 2. Marginal reserve tax on transaction deposits, 1959-93 :Q1' Billions o Required reserves 1. The marginal reserve tax is the quarterly average effective federal funds rate times the highest reserve requirement on transaction deposits during the quarter. Effective federal funds rate became more onerous; with higher interest rates, banks were being forced to forgo more earnings by holding non-interest-bearing required reserve bal- Billions of dollars ances. Indeed, the marginal tax rate on transaction Forgone interest (demand) deposits—the reserve tax on an addi- (1982 dollars)2 tional dollar of these deposits, as measured by the reserve requirement times the rate of interest forgone—rose through much of this period as well (chart 2). As a result, more banks began to leave the Federal Reserve System, taking with them an ever-increasing share of the deposits in the banking system. By the early 1970s, for example, the share of transaction deposits held by member banks had 1960 1965 1970 1975 1980 1985 1990 1. Data are annual averages. fallen below 75 percent from nearly 85 percent in 2. Forgone interest is defined as required reserve balances multiplied by the the late 1950s (chart 3). In response, the Federal federal funds rate. Reserve began to argue for additional legislation aimed at stemming the corrosive effects of the decline in membership on monetary control. Either ticularly those related to the clearing of financial all depository institutions should be subject to transactions. reserve requirements established by the Federal The change in vault cash accounting did in fact Reserve, thereby rendering the membership issue reduce the level of required reserve balances some- irrelevant, the System argued, or interest should be what in the early 1960s (top panel of chart 1). This paid on required reserve balances, thereby removdecline, coupled with a drop in short-term interest ing banks' primary motive for leaving the System.9 rates (middle panel of chart 1), helped lighten the Opposition to both proposals proved strong, burden of reserve requirements in terms of the however, with nonmember banks leading the cruinterest forgone on required reserve balances (bot- sade against universal reserve requirements and tom panel of chart 1). Proposals to change the structure of reserve requirements. This relief proved temporary, how- 9. Each Annual Report of the Board of Governors of the Federal Reserve System between the years 1964 and 1979 argued for the ever. As interest rates climbed in the late 1960s and adoption of legislation aimed at reforming the structure of reserve into the 1970s, the burden of reserve requirements requirements to combat the problem of membership attrition. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reserve Requirements: History, Current Practice, and Potential Reform 577 3. Member bank transaction deposits as a share of total reserve positions. One problem with LRR was that transaction deposits, 1959-80' it weakened the direct, contemporaneous link between reserves and money, thus making it harder, Percent in principle, to manipulate reserves to control — — 85 money, at least in the short run. This problem was not considered a serious one, however, because * — 80 Federal Reserve procedures at that time were not — 75 directed at tight, short-run control of money through a reserves operating target. - — 70 - 65 Graduated reserve requirements. In the late I I I II I I I II I I I II I I I II 1 1 1 1960s, the Federal Reserve also began to move I960 1965 1970 1975 1980 away from a system of reserve requirements based 1. Transaction deposits are defined as net demand deposits plus NOW accounts. Data are expressed as annual averages. on geographic distinctions, as embodied in the reserve city bank and country bank designations. with both the legislative and executive branches of By 1972, the old system was eliminated altogether, the federal government opposed to interest on and a new system with a progressive, graduated reserves out of concern about Treasury revenues. reserve requirement schedule was implemented. In fact, a 1963 presidential commission cautioned Under the new system, reserve requirements against any significant cuts in reserve requirements increased with the level of each bank's deposits, to avoid a sharp drop in Treasury revenue.10 Most independent of its location. Although the specifics academics, by contrast, usually supported retaining were somewhat complicated (see the appendix for and even increasing reserve requirements to tighten details), the upshot of the change was to reduce the link between reserves and money, while paying reserve requirements for smaller banks, which were interest on reserves to eliminate the distortional still most likely to leave the System. At the same effects of the reserve tax.11 time, however, the move to a system with many reserve requirements based on different deposit levels further weakened the link between the aggre- Lagged reserve requirements. Thwarted in its gate level of reserves and the total amount of attempts to promote substantive change in the deposits in the banking system. Again, however, structure of reserve requirements, the Federal because the Federal Reserve was not trying to Reserve took several smaller, unilateral steps aimed maintain control of deposits through a reservesat stemming membership attrition. In 1968, a systargeting procedure, this effect was not a major tem of lagged reserve requirements (LRR) was concern. implemented in which a bank's required reserves were computed based on its deposit levels from two weeks earlier. Previously, the computation Continued decline of membership. Despite the period for deposits had been essentially contempo- efforts of the Federal Reserve, the decline of memraneous with the maintenance period for reserves. bership in the System continued unabated, with the By switching to LRR, the Federal Reserve hoped to proportion of transaction deposits at member banks make it less difficult and costly for banks to calcu- falling below 65 percent of total transaction deposlate their reserve requirements and to manage their its by the late 1970s (chart 3), in part because rising interest rates were enlarging the reserve tax (charts 1 and 2). In response, the Federal Reserve 10. Report of the Committee on Financial Institutions to the President of the United States, Walter W. Heller, Chairman began to argue more vociferously for changes in (GPO, 1963). the structure of reserve requirements to prevent 11. See, for example, Milton Friedman, A Program for membership attrition from further undermining the Monetary Stability (Fordham University Press, 1959), pp. 65-76; Thomas Mayer, "Interest Payments on Required efficacy of monetary policy.12 In 1978, it even went Reserve Balances," Journal of Finance, vol. 21 (March 1966), pp. 116-18; and George S. Tolley, "Providing for Growth of the Money Supply," Journal of Political Economy, vol. 65 (December 12. See "Statement by G. William Miller, Chairman, Board of 1957), pp. 477-85. Governors of the Federal Reserve System, before the Committee Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

578 Federal Reserve Bulletin • June 1993 so far as to propose a unilateral plan to pay interest also granted the Federal Reserve authority to on reserves, which elicited strenuous congressional impose a supplemental reserve requirement of up opposition.13 to 4 percent on transaction accounts. Finally, as a The relative decline in the deposit base at mem- result of MCA, the number of depositories required ber banks became particularly worrisome after to report their deposits to the Federal Reserve October 1979, when the Federal Reserve adopted a increased markedly, thus improving the accuracy reserves-based operating procedure designed to and timeliness of data necessary for monetary maintain close, short-run control of Ml. The suc- control. cess of this procedure depended in part on how To ease the burden of reserve requirements, the tight the link was between reserves at member MCA initially set the basic reserve requirement on banks and the level of Ml deposits in the entire transaction deposits at 12 percent—below the banking system—a link that was being weakened 16V4 percent maximum that had been in effect by the continued decline in membership as well for member banks—and prohibited the Federal as by some of the steps the Federal Reserve had Reserve from raising this requirement above taken to try to reverse this decline, including 14 percent. It also set a 3 percent reserve requireswitching to LRR and instituting graduated reserve ment on the first $25 million of deposits at each requirements. institution—the so-called low reserve tranche—as a special concession to smaller depositories. In 1982, the Garn-St Germain Act went even The Monetary Control Act and Ml Targeting further by exempting from reserve requirements altogether the first $2 million of deposits. The law After years of debate, the Congress finally adopted mandated annual adjustments to the cutoffs for the legislation to reform reserve requirement rules in exemption and the low reserve tranche based on order to end the problem of membership attrition aggregate growth in reservable liabilities and transand facilitate control of Ml. The Monetary Control action deposits respectively. To help smooth the Act of 1980 (MCA) mandated universal reserve transition for nonmember banks and thrift institurequirements to be set by the Federal Reserve for tions, a multiyear phase-in period was put in place, all depository institutions, regardless of their mem- and the Federal Reserve was also prohibited from bership status. The act also vastly simplified the putting reserve requirements on personal time and graduated reserve requirement schedule, further savings deposits, which were particularly importightening the link between reserves and money. tant sources of funds for these institutions. Finally, Although the key focus was on transaction (Ml) all institutions with reservable deposits, not just deposits, all of which were made subject to reserve member banks, now had access to the discount requirements, certain types of nontransaction window as well as to Federal Reserve services, deposits also became subject to requirements, including check clearing, funds transfers, and the which effectively broadened the reserve base and like, though these services were no longer to be required more depositories to hold reserve bal- provided free of charge. ances. In this way, the Federal Reserve's ability to The MCA did not specifically prohibit or authoinfluence aggregate deposit levels by manipulating rize the payment of interest on required reserves, the quantity of reserves was improved. The MCA although it mandated the payment of interest on supplemental reserves should the Federal Reserve ever impose them. The legislative history of the on Banking, Finance and Urban Affairs, U.S. House of Representa- MCA indicates that the Congress was concerned tives, July 27, 1978," Federal Reserve Bulletin, vol. 64 (August about the possible adverse effects of the act on 1978), pp. 636-42; and "Statement by Paul A. Volcker, Chairman, Board of Governors of the Federal Reserve System, before the Treasury revenues, so much so that the MCA even Committee on Banking, Housing, and Urban Affairs, U.S. Senate, prohibits the Federal Reserve from lowering the February 4, 1980," Federal Reserve Bulletin, vol. 66 (February reserve requirement to less than 8 percent on trans- 1980), pp. 643^8. 13. For details on the Federal Reserve's proposal, see Federal action deposits. The legislative history also indi- Reserve Bulletin, vol. 64 (July 1978), pp. 605-10. For congres- cates that the Congress was concerned that paysional reaction, see "Monetary Control and the Membership ment of interest on reserves would give the Federal Problem." Hearings. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reserve Requirements: History, Current Practice, and Potential Reform 579 Reserve, in its role as a provider of financial ser- facilitate the control of Ml through a reservesvices, an unfair competitive advantage over depos- oriented targeting procedure, had seemingly itory institutions, which are prohibited from paying become an anachronism. interest on demand deposits. Appreciative of this In fact, however, reserve requirements continued concern and aware of the distortions created by the to play an important role in the conduct of moneprohibition of interest payments on demand depos- tary policy, in part by providing a stable, predictits, the Federal Reserve advocated removal of this able demand for aggregate reserves. Absent reserve prohibition in conjunction with the payment of in- requirements, banks would still hold some balances terest on reserves.14 Neither proposal was adopted, at the Federal Reserve to meet their clearing needs. however. Thus, the reserve tax on depositories and Given the size and volatility of the financial transtheir customers remained. actions that clear through these reserve accounts, In 1982, the Federal Reserve took another step to depositories need to maintain a cushion of balances improve its short-run control of Ml by deciding to in these accounts to provide some protection switch to a contemporaneous reserve requirement against uncertain debits that can potentially leave (CRR) scheme. By making the period in which their accounts overdrawn at the end of the day and banks are required to maintain their reserves subject to stiff penalties.16 The exact amount of against transaction deposits virtually contempora- balances that banks wish to hold for clearing purneous with the period in which deposit levels are poses may vary considerably from day to day, computed for the purpose of determining reserve however, and cannot be forecast with much precirequirements, this move tightened the real-time sion by the Federal Reserve. By making reserve link between reserves and Ml.15 In so doing, it requirements the binding constraint on banks' remedied a weakness in the short-run monetary demand for reserves—that is, by keeping required control mechanism of the existing, reserves-based reserve balances above the uncertain level needed operating procedure. for clearing purposes—the Federal Reserve can more accurately determine the banking system's demand for reserves. In this way, it can more Reserve Requirements since the Abandonment readily achieve any desired degree of pressure on of Ml Targeting bank reserve positions and associated reserve market conditions simply by manipulating the maintenance-period-average supply of reserves. Ironically, by the time CRR was instituted in 1984, the Federal Reserve had shifted its focus away By requiring banks to hold an average amount of from short-run control of Ml via a reserves-based reserves over a two-week maintenance period operating procedure, preferring instead to influence rather than a specific amount on each day, current monetary and credit conditions by adjusting the regulations allow considerable flexibility in daily cost and availability of reserves to depositories. It reserve management. Banks can use this flexibility also shifted its focus more toward M2, as this to arbitrage anticipated, intraperiod variations in aggregate was seen as more closely linked to the the cost of reserves (the federal funds rate), by ultimate objectives of monetary policy than Ml, substituting reserves on one day of the period when which had become overly sensitive to interest rates they are expected to be less costly for reserves on after the authorization of nationwide NOW another day when they are expected to be more accounts and the general deregulation of deposit costly. This sort of intraperiod arbitrage serves to rates. Thus, the basic structure of reserve require- reduce day-to-day fluctuations in the cost of ments, which had been meticulously designed to reserves. The lower the level of required reserve balances, however, the less leeway a bank has for manipulating the intraperiod profile of its reserve 14. See statement by J. Charles Partee, October 27, 1983. 15. Actually, banks were required to hold an average amount of reserves over a two-week maintenance period ending every other 16. At present, the penalty rate on overnight overdrafts is the Wednesday, based on average deposit levels in a two-week compu- higher of 200 basis points above the federal funds rate on the day, tation period that ends on a Monday two days before the end of the or 10 percent. In addition, banks have to offset overdrafts later in maintenance period. the period to meet their reserve requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

580 Federal Reserve Bulletin • June 1993 4. Reserve and clearing balances, 1980-89 5. Volume of funds transactions clearing through reserve accounts, 1980-90 1980 1982 1984 1986 1988 1990 Observations are annual averages of daily data. maintenance period and hence to provide extra insurance against overdrafts and added flexibility to reserve management. Not surprisingly, in the years immediately after passage of MCA, as required reserve balances fell as a result of the phased reductions in reserve requirements for member banks (top panel of Data are annual averages. chart 4), many of these institutions opened clearing balances to help replenish their diminished protection against overdrafts. Indeed, by 1986, the bankposition without jeopardizing its overnight over- ing system as a whole had contracted to hold draft protection; hence, the bank will be less able to roughly $l3/4 billion of clearing balances (bottom arbitrage day-to-day variations in the federal funds panel of chart 4). To a lesser extent, other banks, rate. particularly those using small amounts of priced Banks that find their required reserve balances services from the Federal Reserve and those new to insufficient to meet their clearing needs—that is, to managing reserve accounts, increased their holdprovide them with adequate overdraft protection— ings of excess reserves to help meet their clearing are able, under the provisions of MCA, to open needs. These changes, coupled with a rebound in clearing balances. Banks can contract with the Fed- required reserve balances, provided banks with eral Reserve to hold an average amount of these more of a cushion to handle a sharp increase in the balances in their reserve accounts over the two- volume of funds transactions clearing through their week reserve maintenance period. If they fail to reserve accounts (chart 5). hold the amount required under the contract, they are penalized, much as would be the case if they failed to hold sufficient balances to meet their reserve requirements. Unlike required reserve bal- RECENT CUTS IN RESERVE REQUIREMENTS ances, however, which do not earn interest, banks receive earnings credits on the amount of clearing In the decade after passage of the MCA in 1980, balances they are required to hold under their con- the Federal Reserve left reserve requirements tractual agreement. They can, in turn, use these essentially unchanged. More recently, however, it earnings credits to defray the costs of Federal has taken two steps to reduce these requirements. Reserve priced services. Thus, from a bank's per- In December 1990, the required reserve ratio on spective, opening a clearing balance is a virtually nontransaction accounts—nonpersonal time and costless way to boost the average balance it is savings deposits and net Eurocurrency liabilities— required to hold in its reserve account over the was pared from 3 percent to zero, and in April Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reserve Requirements: History, Current Practice, and Potential Reform 581 1992, the 12 percent requirement on transaction 2. Effect of recent cuts in reserve requirements deposits was trimmed to 10 percent. Reduction in Reduction in Federal Effective required reserve interest funds date of balances forgone rate cut (billions of (millions of (percent) Rationale dollars) dollars) December 1990 W/2 7.0 800 These actions were motivated in part by develop- April 1992 m 4.0 350 ments in credit markets, where evidence had emerged suggesting that some lenders had adopted a more cautious approach to extending credit. This Using the 7 percent federal funds rate that precaution was exerting a restraining effect on the cost vailed at the time as a proxy for the interest that and availability of credit to some types of borrow- could have been earned on these balances, the cut ers. By reducing depository funding costs and thus in reserve requirements translated into an increase providing depositories with easier access to capital of about $800 million in the annual, pretax earnmarkets, the cuts in reserve requirements were ings of depositories and their customers. designed to put banks in a better position to extend As a result of this cut in reserve requirements, credit. In particular, the cut in the requirement on about 2,500 depositories whose vault cash had nonpersonal time deposits was aimed directly at formerly been insufficient to meet their reserve spurring bank lending because these accounts are requirements were no longer bound to hold baloften used as a marginal funding source. Of course, ances at the Federal Reserve. For these institutions, it was recognized that some, if not all, of the therefore, the reduction in the nontransaction benefits stemming from the reserve requirement requirement essentially eliminated the reserve tax. cuts would likely be passed on, over time, to bor- Trimming the required reserve ratio on transaction rowers and lenders.17 accounts in April 1992 relieved several hundred The cuts in reserve requirements were also moti- additional institutions from having to hold balances vated by the Federal Reserve's recognition that at the Federal Reserve. Overall, this second cut in much of the early-1980s rationale for reserve reserve requirements reduced the required reserve requirements had evaporated with the abandon- balances of the entire banking system about ment of a reserves-oriented operating procedure $8!/2 billion, resulting in annual pretax savings of geared to short-run control of Ml. At the same roughly $350 million for the private sector, given time, it realized that reserve requirements still the 4 percent federal funds rate that prevailed at the played a vital role in policy implementation. time. Indeed, it chose not to make even deeper cuts in requirements for fear that required balances would fall to levels insufficient to satisfy the normal clear- Effects on Bank Reserve Management ing needs of the banking system. and Open Market Operations In the immediate aftermath of the December 1990 Effects of Reserve Requirement Cuts on the cut in reserve requirements, the level of required Size of the Reserve Tax operating balances—the sum of required reserve balances and the amount of clearing balances The elimination of the 3 percent reserve require- required to be held under contractual arrangements ment on nontransaction accounts at the end of 1990 between depositories and the Federal Reserve— reduced the level of required reserve balances plunged (chart 6). By early February 1991, these roughly $11V^ billion, or about one-third (table 2). balances reached a trough of about $18^4 billion— barely more than half their level in the period preceding the cut in requirements and nearly 17. For details on the rationales for the recent cuts in reserve 40 percent below their seasonal low in early Februrequirements, see Federal Reserve Bulletin, vol. 77 (February ary 1990. Required operating balances typically 1991), pp. 95-96; and Federal Reserve Bulletin, vol. 78 (April reach a low point at this time of the year because 1992), pp. 272-73. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

582 Federal Reserve Bulletin • June 1993 6. Reserve balances, 1989-March 31, 1993 With required operating balances falling below the levels needed by many depositories for daily Maintenance period averages 1 clearing purposes, the marginal dollar of reserve demand often stemmed from clearing needs on the day, rather than from a reserve requirement averaged over two weeks. As a result, banks had less scope for manipulating their reserve positions from one day to the next and, consequently, for arbitraging anticipated intraperiod variations in the cost of reserves. Not surprisingly, a variety of measures of federal funds rate volatility posted significant 1989 1990 1991 1992 1993 increases (chart 7). At the same time, many deposi- 1. Reserve maintenance periods run for two weeks, so that there are twenty- tories held levels of excess reserves that greatly six periods each year. In this chart and in charts 7,8, and 9, there are twenty-six observations for each full year. exceeded those seen in comparable periods of 2. Required operating balances are required reserve balances plus required recent years in order to restock their depleted overclearing balances. draft protection (chart 8). Because the extent to which banks wanted to boost their holdings of excess reserves was unknown to the Federal required reserves fall from their end-of-year peak. Reserve, it became more difficult to estimate the Also, owing to regulations stipulating that deposidemand for reserves and, thus, to conduct open tories apply their vault cash holdings from two market operations. maintenance periods earlier in meeting their current reserve requirements, the enlarged holdings of vault cash from year-end do not become available for use in meeting reserve requirements until late Transition to a More Orderly Reserve Market January and early February. Over the next few months, reserve market conditions returned to normal, with both excess reserves and the volatility of the funds rate falling back 7. Reserve market volatility, 1988-March 31, 1993 more or less to levels seen before the cut in reserve Variance of daily effective federal funds rate requirements. Although the reasons for the more stable reserve market climate varied, the rapid rebuilding of required operating balances was probably the most important. The higher level of balances provided banks with more adequate overdraft protection and greater flexibility in managing their reserve positions, thus reducing the need for excess 8. Excess reserves, 1989-March 31, 1993 Maintenance period averages Billions of dollars 1988 1989 1990 1991 1992 1993 1. Computed around the maintenance period average. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reserve Requirements: History, Current Practice, and Potential Reform 583 9. Required clearing balances, 1989-March 31, 1993 balances quickly made up all their lost ground, spurred by continued rapid growth in required Maintenance period averages Billions of dollars reserves and another surge in the use of clearing Reserve Reserve requirement cut requirement cut balances. Indeed, these balances now total about $6 billion, or more than three times their level before the first cut in reserve requirements; they 4 now make up nearly 20 percent of required operating balances versus about 5 percent in late 1990. — 2 The Federal Reserve also made several changes in reserve accounting rules to help banks better manage their accounts in a world of lower require- 1989 1990 1991 1992 1993 ments and to aid the implementation of monetary policy. First, to smooth the seasonal pattern in balances and providing additional leeway for arbi- required operating balances, the Federal Reserve trage in the funds market. reduced the lag on the application of vault cash for The pronounced rebound in required operating use in meeting reserve requirements from two balances over the remainder of 1991 owed in part maintenance periods to one, effective in the period to a surge in required reserves stemming from beginning November 12, 1992. By more closely rapid growth in transaction deposits. Furthermore, synchronizing the movements in required reserves deliberate efforts by depositories to hold additional and applied vault cash, this change was designed to balances also played a role in the faster-than-usual temper seasonal declines in required operating balincrease in required operating balances. For exam- ances, particularly the most severe decline, which ple, banks used clearing balances much more after occurs in late January and early February. To give the cut in reserve requirements (chart 9). Evidence depositories greater flexibility in managing their also suggests that some banks sought to economize reserve positions from one period to the next, the on their vault cash holdings to boost their required Federal Reserve also doubled the carryover privireserve balances. In addition, depositories may lege, which enables banks to carry forward into the have learned to manage their reserve accounts more next maintenance period small reserve surpluses efficiently, making use of improved, real-time and deficiencies.18 information on the status of their reserve balances These changes, coupled with the rebound in throughout the day to lower the cushion they required operating balances, helped prevent the cut needed to hold as insurance against uncertain in the transaction requirement from having adverse debits that can result in overdrafts. effects on the functioning of the reserve market or on the conduct of open market operations. In fact, most measures of the volatility of the federal funds The Cut in the Transaction Requirement rate are up only marginally relative to their levels before December 1990, and aggregate excess With the reserve market functioning reasonably reserves are running only a shade higher than well again, the Federal Reserve believed that it before the cuts in reserve requirements. Some evicould safely lower reserve requirements once more. dence suggests, however, that banks do have a bit As it turned out, the cut in the transaction require- less flexibility in managing their reserve positions ment in April 1992 was relatively uneventful. from day to day; in particular, some systematic Although required operating balances initially patterns in the behavior of the federal funds rate dropped sharply, the decline was not nearly as within reserve maintenance periods have intensiprecipitous as that seen in early 1991; not only was fied, suggesting that banks may not have as much this cut smaller in terms of its effect on required reserve balances, it also came at a time of the year when these balances tend to be high because of the 18. Since September 1992, depositories have been able to carry buildup of transaction deposits in anticipation of forward one maintenance period the greater of 4 percent of required reserve plus clearing balances, or $50,000; the carryover allowance the April 15 tax date. Moreover, required operating had previously been the greater of 2 percent, or $25,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

584 Federal Reserve Bulletin • June 1993 scope to arbitrage in the funds market as they once reserves-oriented targeting procedure to control did.19 money growth if it ever deemed this action Concerned that additional declines in required appropriate. operating balances would complicate reserve management and the conduct of open market opera- Recent Trends in Other Countries tions, the Federal Reserve has not made further cuts in reserve requirements. Nevertheless, owing Several other countries have significantly reduced, to the cuts it did make as well as to declines in and in some cases essentially eliminated, reserve short-term interest rates, the reserve tax has been requirements in recent years. In the United Kingfalling sharply in recent years (chart 1). Conse- dom and Switzerland, for example, reserve requirequently, the marginal tax rate on transaction depos- ments no longer effectively constrain bank behavits has dipped to its lowest level in thirty years ior. In these countries, most banks find that their (chart 2). Even so, this tax still represents a burden required reserves fall short of their daily clearing on the private sector, and one that could rise signif- needs, so that at the margin the latter essentially icantly if interest rates were to increase. Cognizant determine their demand for reserves. More recently, of the actual and prospective burden of the reserve Canada has also begun to phase out reserve tax, depositories continue to work to fashion finan- requirements, and by 1994, their requirements will cial products aimed largely at exploiting loopholes be completely eliminated. in reserve regulations. These countries have taken different steps, based on their own unique institutional structures, to facilitate bank reserve management and the con- POTENTIAL REFORMS TO THE duct of open market operations in a world of non- CURRENT SYSTEM binding reserve requirements. The Bank of England (BOE), for example, has adopted a more flexible Several suggestions have been put forth over the operating procedure, often intervening in the years for reforming the system of reserve requiremoney markets several times a day to fine tune the ments. In this section, I review some of these cost and availability of reserves to meet everproposals, drawing heavily on the lessons learned changing clearing needs. In addition, banks in the from the recent cuts in reserve requirements as well United Kingdom are usually willing to borrow as from the experiences of other countries that have from the BOE late in the day to meet their clearing lowered reserve requirements in recent years. needs. Banks in the United States, by contrast, have become increasingly reluctant in recent years to Eliminate Reserve Requirements avail themselves of Federal Reserve discount window credit, in part out of concerns that doing so Although this proposal would clearly eliminate the might be interpreted by market participants as a reserve tax, recent experience suggests that it sign of financial weakness. Even so, the volatility would also engender a significant increase in vola- of overnight interest rates in the United Kingdom tility in the reserves market and seriously compli- has tended, on average, to be somewhat higher than cate the conduct of open market operations. More- that in the United States, where reserve requireover, absent reserve requirements, the Federal ments are still binding for many institutions. Reserve would be unable to reinstitute an effective, The Swiss National Bank (SNB) has adopted a different approach than the BOE. Although it now places somewhat greater emphasis on smoothing 19. Specifically, the federal funds rate has tended to be lower on short-term interest rates than it did in the past, it Fridays, when reserves count three times in the calculation of a bank's period-average position; depositories are apparently more has been much less accommodative in offsetting reluctant to build up their reserve balances on these days for fear temporary fluctuations in clearing needs than has that they will be unable to work them off later in the period without the BOE. As a result, Switzerland has experienced jeopardizing their overdraft protection. On settlement days, by contrast, the funds rate has tended to be higher, as banks move greater volatility in overnight rates than the United more aggressively to meet their reserve requirements. The persis- Kingdom, and Swiss banks have chosen to hold tence of systematic, intraperiod patterns in the funds rate suggests substantial excess reserves, in part because overthat arbitrage opportunities are not being fully exploited. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reserve Requirements: History, Current Practice, and Potential Reform 585 night overdrafts are prohibited. At the same time, dramatically if it eliminated reserve requirements. however, the ability of Swiss banks to access SNB In particular, to preserve its ability to conduct open credit at their own discretion, albeit at a penalty market operations, it would have to ensure that rate, has likely served to temper reserve market depositories still had a demand for reserve liabilivolatility somewhat. ties at the Federal Reserve. To this end, it would Although the jury is still out on the full ramifica- likely have to require at least some depositories to tions of Canada's elimination of reserve require- clear their financial transactions through the Fedments, which is in the process of being phased in, eral Reserve and to continue to subject them to the Bank of Canada (BOC) feels that its financial penalties for overnight overdrafts. At the same system is amenable to functioning smoothly in the time, it would probably also have to do something absence of reserve requirements. Specifically, Can- to make depositories less reluctant to use the disada's system is highly concentrated, with a handful count window as a safety valve to defuse reserve of large depositories controlling the lion's share of market pressures. Even so, volatility in the money financial assets and handling the vast majority of market is likely to rise significantly, and the Fedfinancial transactions. These "direct clearers" will eral Reserve's ability to achieve desired reserve be required to clear all transactions through reserve market conditions might be undermined as a result accounts at the BOC, and although they will have of the difficulty in gauging the banking system's no reserve requirements, they will be penalized if demand for reserves. their reserve accounts are overdrawn. Thus, a demand for reserve liabilities at the central bank Pay Interest on Required Reserve will be preserved, thereby enabling the BOC to Balances—the Preferred Solution implement monetary policy by manipulating the supply of reserves relative to this demand. Because Paying interest on reserves is a preferable alternathe number of direct clearers is so small, moreover, tive to eliminating reserve requirements. Specifithe BOC can readily gauge the demand for clearing cally, if the Federal Reserve paid a market-based balances simply by keeping in close contact with rate of interest on required reserve balances, the the relevant banks. Finally, the BOC is also able to reserve tax would essentially be eliminated, as adjust the supply of reserves late in the day by would the distortional effects of this tax on resource moving government deposits between accounts in allocation. Households and businesses would not commercial banks and accounts at the BOC, face an artificially imposed incentive to redirect thereby helping to mitigate volatility in the reserves credit flows away from depositories. Furthermore, market. depositories would no longer have an incentive to Other central banks, such as the Bundesbank and devote resources to new methods of reserve avoidthe Bank of Japan (BOJ), which operate in finan- ance. If required reserve balances earned interest, cial environments more akin to those found in the moreover, the Federal Reserve could even raise United States, have not eliminated reserve require- reserve requirements if it wanted to provide banks ments. Echoing arguments made by the Federal with greater flexibility in managing their reserve Reserve, both the Bundesbank and the BOJ believe positions, reduce volatility in the money markets, that reserve requirements are essential for provid- and simplify the conduct of open market operaing the stable, predictable demand for reserves that tions, without having to worry about imposing a is needed for the conduct of open market opera- tax on the private sector.20 tions and the prevention of undesirable money market volatility. Thus, although the Bundesbank has 20. An alternative proposal would have the Federal Reserve pared reserve requirements in recent years, these raise reserve requirements and pay interest only on the increased requirements are still binding for most German balances depositories were required to hold. Though this plan banks. would not reduce Treasury revenue, it would also not do anything to reduce the deleterious effects of the current reserve tax. For Overall, based on the recent experience in the details on this proposal, see Spence Hilton, Melissa Gerdts, and United States and the experiences of other coun- Roxann Robinson, "Paying Interest on Reserves," in Federal Reserve Bank of New York, Reduced Reserve Requirements: Altertries, it seems clear that the Federal Reserve would natives for the Conduct of Monetary Policy and Reserve Managehave to alter its other tools of monetary policy ment (New York: FRBNY, 1993). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

586 Federal Reserve Bulletin • June 1993 10. Required reserve balances as a percentage of total or have been channeled directly through the capital Federal Reserve liabilities, year-end, 1960-91 markets, with little attendant effect on the cost or availability of credit to most borrowers, some credits that are less easily substitutable, such as loans to small and medium-sized businesses, may have been curtailed, at least partly as a result of the increases in depository intermediation costs. Thus, it may be these borrowers who ultimately pay much of the price of the higher, government-mandated costs on depositories. Paying interest on required reserve balances would be one way of offsetting some of these higher costs. APPENDIX: SUMMARY OF RESERVE In the past, proposals to pay interest on required REQUIREMENTS SINCE 1913 reserve balances have encountered resistance largely because they would reduce the earnings The tables in this appendix summarize changes in remitted by the Federal Reserve to the Treasury. required reserve ratios since the inception of the Required reserve balances have been declining as a Federal Reserve System in 1913. share of total Federal Reserve liabilities for years, Three major structures of reserve requirements however, and now make up only about 7 percent of have been used since 1913. The first two, which the total (chart 10). As a result of this decline, preceded passage of the Monetary Control Act of which owes to reductions in reserve requirements 1980, applied reserve requirements only to banks as well as to relatively rapid growth of currency in that were members of the Federal Reserve System. circulation, the payment of interest on required The first structure was based on geographic distincreserve balances would now engender a relatively tions among member banks (table A.l). From 1913 smaller reduction in the amount of Federal Reserve to 1962, reserve requirements of member banks earnings remitted to the Treasury than ever before. varied depending on whether the bank was located In addition, it had often been argued in the past in a central reserve city, a reserve city, or elsethat the reserve tax on the depository system and its where. In 1962, the authority of the Federal customers was more than offset by the government- Reserve to classify or reclassify cities as central backed deposit insurance program, which provided reserve cities was terminated. a subsidized, implicit government guarantee that In 1966, the Federal Reserve moved toward the conferred an advantage on depositories in their next structure, involving graduated reserve requirecompetition with other financial intermediaries. ments based on the level of deposits at each bank. More recently, however, the price of this govern- Each deposit interval shown in table A.2 represents ment guarantee has risen substantially. Not only that part of the deposits of each bank that was have deposit insurance premiums been raised subject to the reserve requirement shown. For sharply, but capital requirements for depositories example, in July 1966, the first $5 million of time have been increased, more stringent standards for deposits at banks was subject to a 4 percent requireinterbank lending have been imposed, and certain ment; each additional dollar of time deposits was restrictions on deposit pricing have resurfaced. reservable at 5 percent. By 1972, a full-fledged Taken together, these changes have served to graduated reserve requirement schedule was put in increase the costs of intermediation through the place, without regard to reserve city or country depository system. Partly as a result of these bank designations (table A.3). increased costs, the share of new credit flows inter- Another change in reserve regulations involved mediated through the depository system has fallen the definition of "net" demand deposits (tables A.l dramatically in recent years. Although many of the and A.2). In 1935, net demand deposits were credits formerly booked by banks and thrift institu- defined as total demand deposits minus cash items tions have been picked up by other intermediaries in the process of collection and demand balances Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reserve Requirements: History, Current Practice, and Potential Reform 587 A.l. Reserve requirements based on geographic distinctions among member banks, 1913-66 Percent of deposits Net demand deposits TTiimmee ddeeppoossiittss EEffffeeccttiivvee ddaattee Central reserve Reserve city ((aallll ccllaasssseess ooff bbaannkkss)) Country banks city banks banks 1913—December 23 18 15 12 5 1917—June 21 13 10 7 3 1936—August 16 19.5 15 10.5 4.5 1937—March 1 22.75 17.5 12.25 5.25 May 1 26 20 14 6 1938—April 16 22.75 17.5 12 5 1941—November 1 26 20 14 6 1942—August 20 24 September 14 22 October 3 20 1948—February 27 22 June 11 24 September 24, 16 26 22 16 7.5 1949—May 5, 1 24 21 15 7 June 30, July 1 f 20 14 6 August 1 1 20 13 6 August 11, 16 23.5 19.5 12 5 August 18 23 19 August 25 22.5 18.5 September 1 22 18 1951—January 11, 16 23 19 13 6 January 25, February 1 24 20 14 1953—July 9, 1 22 19 13 1954—June 24, 16 21 19 13 5 July 29, August 1 20 18 12 1958—February 27, March 1 19.5 17.5 11.5 March 20, April 1 19 17 11 April 17 18.5 17 April 24 18 16.5 1960—September 1 17.5 November 24 17.5 12 December 1 16.5 1962—July 28 T October 25, November 1 i 4 In this table and in table A.2, when two dates appear on the same line, the first applies to the change at central reserve city banks and the second applies to the change at country banks. The appendix continues on page 588. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

588 Federal Reserve Bulletin • June 1993 due from other depositories. In 1969, reserves also They were not applicable to banks having aggrebegan to be required against net balances due from gate obligations of these types of less than domestic offices to their foreign branches. $10 million. From June 21, 1973, through December 11, Beginning November 2, 1978, a supplementary 1974, under the structure of graduated reserve reserve requirement of 2 percent was added to the requirements, member banks were subject to vary- existing requirements on time deposits in excess of ing marginal reserve requirements against increases $100,000 and for certain other liabilities. This supin the following: (1) time deposits of $100,000 or plementary requirement was eliminated with the more; (2) funds obtained through issuance by any maintenance period beginning July 24, 1980. Also, affiliate of the bank of obligations subject to reserve effective with the reserve computation period requirements on time deposits; and (3) funds from beginning November 16, 1978, domestic deposits sales of finance bills (table A.3). The requirements of Edge corporations were subject to the same applied only to balances above a specified base: reserve requirements as member banks. A.2. Reserve requirements based on geographic distinctions among member banks and on the level of deposits, 1966-72 Percent of deposits Time deposits Net demand deposits BCFCTFFR. JP (all classes of banks) Reserve city banks Country banks Other time EEEffffffeeeccctttiiivvveee dddaaattteee (deposit intervals in (deposit intervals in (deposit intervals in millions of dollars) millions of dollars) SSaavviinnggss millions of dollars) 0-5 More than 5 0-5 More than 5 0-5 More than 5 1966—July 14, 21 16.5 16.5 12 12 4 4 5 September 8, 11 fel Wwl^iltl 1 E MS 4 4 4 6 1967—March 2 3.5 3.5 March 16 1968—January 11, 18 ... 1969—April 17 17 17.5 Jill 12.5 13 1970—October 1 17 17.5 % "tlJf¥P| 13 5 A.3. A graduated reserve requirement schedule for member banks, 1972-80 Percent of deposits Time and savings deposits Net demand deposits (deposit intervals in millions of dollars) Time (deposit intervals in millions of dollars) Effective date 0-5, by maturity More than 5, by maturity 0-2 22--1100 1 10 0 0 - 1 4 0 0 0 0 - 30-179 d 1 a 8 y 0 s ye 4 a rs 30- d 1 a 8 y 0 s ye 4 a rs 179 days to 4 or to 4 or days years more years more 1972—November 9 10 12 November 16 10 12 i I i 1973—July 19 10.5 12.5 1974—December 12 10.5 12.5 1975—February 13 . 7.5 10 12 October 30 .. l l l 1976—January 8 ... 2.5 2.5 December 30 9.5 11.75 2.5 2.5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reserve Requirements: History, Current Practice, and Potential Reform 589 A.4. Reserve requirements since passage of the SELECTED BIBLIOGRAPHY Monetary Control Act of 1980 Percent Bank of Canada. "The Implementation of Mone- Net tary Policy in a System with Zero Reserve Nontransaction Effective date transaction accounts Requirements," Discussion Paper 3. (September accounts 1991). 1980—November 13 .... Bernanke, Ben, and Frederic Miskin. "Central 1990—December 26 12 0 Bank Behavior and the Strategy of Monetary 1992—April 2 10 0 Policy: Observations from Six Industrial Countries." Working Paper 4082, Cambridge, Effective with the maintenance period beginning Mass.: National Bureau of Economic Research, October 25, 1979, a marginal reserve requirement 1992. of 8 percent was added to managed liabilities in Board of Governors of the Federal Reserve Sysexcess of a base amount. These liabilities included tem. "The History of Reserve Requirements in large time deposits, Eurodollar borrowings, repur- the United States," Federal Reserve Bulletin, chase agreements against U.S. government and vol. 25 (November 1938), pp. 953-72. agency securities, and federal funds borrowings Federal Reserve Bank of New York. "Reduced from nonmember institutions. This marginal Reserve Requirements: Alternatives for the Conrequirement was raised to 10 percent on April 3, duct of Monetary Policy and Reserve Manage- 1980, lowered to 5 percent on June 12, 1980, and ment," Staff Study (April 1993). then eliminated altogether on July 24, 1980. Goodfriend, Marvin, and Monica Hargraves. "A Since passage of the Monetary Control Act in Historical Assessment of the Rationales and November 1980, after an initial phase-in period, all Functions of Reserve Requirements," Federal depository institutions have been subject to reserve Reserve Bank of Richmond, Economic Review, requirements. Required reserve ratios are the same vol. 69 (March/April 1983), pp. 3-21. for all depository institutions under the current Horrigan, Brian R. "Are Reserve Requirements system and apply to transaction accounts and Relevant for Economic Stabilization?" Journal nontransaction accounts (table A.4). Transaction of Monetary Economics, vol. 21 (January 1988), accounts include all deposits on which the account pp. 97-105. holder is permitted to make withdrawals by nego- Kasman, Bruce. "A Comparison of Monetary Poltiable or transferable instruments, payment orders icy Operating Procedures in Six Industrial Counof withdrawal, and telephone and preauthorized tries," Federal Reserve Bank of New York, transfers (in excess of three per month) for the Quarterly Review, vol. 17 (Summer 1992), purpose of making payments. The reserve require- pp. 5-24. ments on transaction accounts shown in table A.4 Meulendyke, Ann-Marie. "Reserve Requirements apply only to those accounts that exceed the and the Discount Window in Recent Decades," exemption and the low reserve tranche, the cutoffs Federal Reserve Bank of New York, Quarterly for which adjust each year according to a formula Review, vol. 17 (Autumn 1992), pp. 25^3. provided by law. In 1993, for example, the first Stevens, E.J. "Is there any Rationale for Reserve $3.8 million of transaction accounts at each depos- Requirements?" Federal Reserve Bank of Cleveitory is exempt from reserve requirements and land, Economic Review, vol. 27 (Quarter 3 the next $46.8 million is reservable at 3 percent. 1991), pp. 2-17. Only deposits in excess of this low reserve tranche Weiner, Stuart E. "Payment of Interest on are reservable at 10 percent. For the purposes of Reserves," Federal Reserve Bank of Kansas reserve requirements, nontransaction accounts City, Economic Review, vol. 68 (January 1983), include nonpersonal time and savings deposits that pp. 16-31. are not transaction accounts and in which the bene- "The Changing Role of Reserve ficial interest is held by a depositor that is not a Requirements in Monetary Policy," Federal natural person, as well as net borrowings by banks Reserve Bank of Kansas City, Economic Review, in the United States from banks outside the country. vol. 77 (Fourth Quarter 1992), pp. 45-63. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

590 Industrial Production, Capacity, and Capacity Utilization since 1987 Richard D. Raddock, of the Board's Division of index of 105 percent. By February 1993, industrial Research and Statistics, prepared this article. output had reached 109.9 percent of its 1987 average—a new high, but 2.1 percentage points The Federal Reserve recently revised its index of below the unrevised level. industrial production and the related measures of The Federal Reserve's index of industrial capaccapacity and utilization. Compared with the previ- ity was also revised downward. According to the ous index, the revised index shows that manufac- revision, the annual growth in capacity from 1987 turing grew more slowly from 1987 until the onset to 1992 averaged only 1.7 percent, down from the of recession late in 1990 and then recovered more previous estimate of 2.3 percent. The rate of capacrapidly, albeit unevenly. According to the revised ity growth has trended lower for many years; it numbers, from 1987 to 1992 the annual rate of tends to be especially slow during and immediately growth in industrial production averaged 1.3 per- after recessionary periods, when plant closings cent, 0.4 percentage point less than was formerly increase and capital spending drops. shown. From the first quarter of 1992 through the As revised, capacity utilization, the ratio of outfirst quarter of 1993, revised industrial output rose put to capacity, was about the same for most of at an annual rate of 4.4 percent to a new high. 1987-91 as it had been before the revision. It Preliminary estimates show that industrial produc- peaked at 84.8 percent in March 1989 and fell to tion changed little in March and April 1993. a cyclical low of 78.3 percent two years later. The revised production and capacity indexes still cover manufacturing, mining, and electric and gas 1. Revised and earlier industrial output, capacity, utilities and are still expressed as percentages of and utilization output in 1987. They have, however, incorporated new monthly and annual data—particularly output estimates derived from the Annual Survey of Manufactures of the U.S. Bureau of the Census and capacity utilization results from the Survey of Plant Capacity, also of the Census Bureau. The incorporation of the new data has progressively lowered the level of the revised industrial production index relative to that of the previous one until 1990. Whereas the previous index showed output peaking in September 1990 at 110.6 percent of the level of output in 1987, the revised index shows output reaching a high of 107.1 in April 1989 and then retreating a little until October 1989 (chart 1, top panel). The subsequent rebound recouped nearly all of the loss by the following summer. Then, as did the previous index, the revised index shows a cyclical contraction ensuing. From September 1990 to the following March, production dropped 4 percent to a low of 102.5, compared with the previous Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

591 1. Historical data for output, capacity, and capacity utilization for total industry, 1986-921 Quarter Annual YYeeaarr avg. 1 2 3 4 Output (percent of 1987 output) 1986 96.1 95.5 94.6 94.8 94.7 94.3 94.8 94.9 95.0 95.6 96.3 96.8 95.4 94.6 94.9 96.2 95.3 1987 96.5 97.9 98.2 98.8 99.4 100.3 100.6 100.9 100.7 102.1 102.2 102.8 97.5 99.5 100.8 102.3 100.0 1988 103.2 103.4 103.4 104.3 104.0 104.0 104.6 105.2 104.7 105.0 105.6 106.3 103.3 104.1 104.8 105.6 104.4 1989 106.6 106.2 107.1 107.1 106.7 106.4 105.3 105.8 105.4 105.0 105.4 106.1 106.6 106.7 105.5 105.5 106.0 1990 105.5 106.1 106.4 105.7 106.5 106.7 106.5 106.8 106.8 106.3 105.0 104.5 106.0 106.3 106.7 105.3 106.0 1991 104.4 103.2 102.5 102.6 103.3 104.4 104.5 104.6 105.3 105.1 105.0 104.7 103.3 103.4 104.8 104.9 104.1 1992 104.5 105.3 105.6 106.3 106.7 106.0 106.8 106.6 106.2 107.5 108.4 108.9 105.1 106.3 106.5 108.3 106.5 Capacity (percent of 1987 output) 1986 119.2 119.4 119.6 119.8 120.0 120.2 120.4 120.6 120.8 121.0 121.2 121.4 119.4 120.0 120.6 121.2 120.3 1987 121.6 121.8 122.0 122.2 122.4 122.6 122.8 123.0 123.2 123.4 123.6 123.8 121.8 122.4 123.0 123.6 122.7 1988 124.0 124.1 124.3 124.4 124.6 124.7 124.9 125.0 125.2 125.3 125.5 125.6 124.1 124.6 125.0 125.5 124.8 1989 125.8 126.0 126.2 126.4 126.6 126.8 127.0 127.2 127.4 127.6 127.8 128.0 126.0 126.6 127.2 127.8 126.9 1990 128.2 128.4 128.6 128.8 129.0 129.2 129.4 129.6 129.8 129.9 130.1 130.3 128.4 129.0 129.6 130.1 129.3 1991 130.5 130.7 130.8 131.0 131.2 131.4 131.5 131.7 131.9 132.0 132.2 132.4 130.7 131.2 131.7 132.2 131.4 1992 132.5 132.7 132.9 133.1 133.2 133.4 133.6 133.7 133.9 134.1 134.2 134.4 132.7 133.2 133.7 134.2 133.5 Utilization (percent of capacity) 1986 80.6 79.9 79.1 79.1 78.9 78.4 78.7 78.7 78.7 79.1 79.4 79.8 79.9 78.8 78.7 79.4 79.2 1987 79.3 80.3 80.5 80.8 81.2 81.8 81.9 82.0 81.8 82.7 82.7 83.1 80.1 81.3 81.9 82.8 81.5 1988 83.2 83.3 83.2 83.8 83.5 83.4 83.8 84.2 83.6 83.8 84.2 84.6 83.2 83.6 83.9 84.2 83.7 1989 84.8 84.3 84.8 84.7 84.3 83.9 82.9 83.2 82.7 82.3 82.4 82.8 84.6 84.3 82.9 82.5 83.6 1990 82.3 82.6 82.8 82.1 82.5 82.6 82.3 82.4 82.3 81.8 80.7 80.2 82.6 82.4 82.4 80.9 82.1 1991 80.0 78.9 78.3 78.3 78.8 79.5 79.5 79.4 79.9 79.6 79.4 79.1 79.1 78.8 79.6 79.4 79.2 1992 78.8 79.3 79.5 79.9 80.1 79.5 80.0 79.7 79.3 80.2 80.8 81.0 79.2 79.8 79.7 80.7 79.8 1. Seasonally adjusted. Neither the high nor the low reached the extreme high in early 1993. Because of the peaking of values of the two preceding business cycles. Dur- building activity in 1986, production of construcing 1992, utilization rose with production and tion supplies began to decline before the general reached 81.4 percent in the first quarter of 1993, cyclical peak, (table 2). Today, despite the lowest 0.5 percentage point below its 1967-92 average. interest rates in nearly a quarter century, the recov- However, the more rapid recovery of revised pro- ery in output of construction supplies continues duction from the trough and the slower growth of to be constrained—at least in part—by the high revised capacity led to an upward revision of utili- vacancy rates of rental housing and commercial zation in 1992 and early 1993. For total industrial buildings. In contrast to these strong cyclical patproduction, capacity, and capacity utilization for terns, the output of nondurable consumer goods, the period of the revision, see table 1. business supplies, and energy materials has fluctuated relatively little in recent years. The production of total equipment grew about DEVELOPMENTS BY MARKET GROUPS 3 percent a year on average from early 1987 to early 1993, even though output of business vehi- Pronounced cyclical contractions and recoveries cles and heavy machinery fell sharply in the receshave been most evident in the output of construc- sion and production of defense equipment has been tion supplies and consumer durable goods, particu- cut considerably since 1990. The recently ended larly automotive products (chart 2). From its high boom in commercial aircraft and the strong gains in early 1989 to the trough in early 1991, output of in output of computers, communications equipconsumer durable goods fell about 20 percent. ment, and medical instruments boosted the busi- After an uneven recovery, it regained its previous ness equipment group in the 1987-92 period. From Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

592 Federal Reserve Bulletin • June 1993 2. Industrial output by market groups Ratio scale, 1987 output Business supplies Nondurable consumer goods Durable consumer goods Construction supplies Business equipment Energy materials Total equipmi Defense and space equipment Durable and nondurable materials early 1992 through early 1993, output of business industry. As a result, short movements and trends equipment soared at an annual rate of more than in output, capacity, and utilization differ widely 12 percent (8 percent, if office and computing among industries. equipment is excluded). The production of industrial materials used to manufacture durable and nondurable goods, which Manufacturing in the past was more cyclical than that of other industrial products, has, in recent years, roughly For analytical purposes, the large and diverse manparalleled the movements of final products (con- ufacturing sector—85 percent of total industrial sumer goods and equipment) production.1 This par- production—is divided into two broad categories: allel movement may reflect the tighter management primary-processing industries, which produce of stocks of materials that reduced overbuilding mainly materials and construction supplies, and and the need for cutting stocks. Swings in net advanced-processing industries, which produce imports of some materials may have counterbal- mainly finished consumer or capital goods. anced some of the swings in domestic demand. Primary-Processing Industries DEVELOPMENTS BY SECTOR Among these industries, the output of lumber, Although industries within manufacturing, mining, stone, clay and glass, and primary and fabricated and utilities face similar cyclical forces, they are metals industries declined relatively severely in also influenced by other factors, such as technology 1990-91; output in each case remains below earlier and resource availability, that may be specific to an highs (table 3). From a high in January 1989, the output index for primary processing dropped 10 percent to the trough. Although recovery has been substantial since then and output of textiles, 1. The total products grouping includes consumer goods, equippaper, and industrial chemicals reached new highs ment, and construction and business supplies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production, Capacity, and Capacity Utilization since 1987 593 2. Revised rates of growth in industrial production, by major market group, 1987-92 Series 1988 1989 1990 1991 1992 1987-92 Average annual rate of growth (percent) Total Index 4.4 1.5 .0 -1.8 2.3 1.3 Products 4.1 1.5 -.1 -2.3 2.4 1.1 Final products 4.8 1.9 .1 -1.5 2.8 1.6 Consumer goods 2.9 1.1 -.5 -.6 2.3 1.0 Durable consumer goods 4.6 1.9 -4.1 -6.9 7.7 .5 Automotive products 6.4 1.6 -6.9 -10.9 10.7 -.1 Home goods 3.0 2.1 -1.5 -3.6 5.3 1.0 Nondurable consumer goods 2.4 .8 .5 1.2 .9 1.2 Equipment 7.6 3.1 1.1 -2.8 3.5 2.4 Business equipment 10.7 4.4 1.2 -1.1 6.5 4.3 Industrial 10.3 3.6 -1.2 -5.9 2.1 1.6 Information processing 11.3 2.5 3.5 2.1 11.7 6.1 Transit 12.8 12.5 1.2 4.1 2.5 6.5 Other 7.2 2.5 -.5 -7.6 3.6 .9 Defense and space -.3 .4 -1.2 -7.2 -6.3 -3.0 Intermediate products 1.8 .2 -.8 -4.6 1.1 -.5 Construction supplies 1.5 -1.0 -2.4 -7.5 3.4 -1.3 Business supplies 2.0 1.0 .1 -2.7 -.3 .0 Materials 5.0 1.6 .1 -1.2 2.3 1.5 Durable goods materials 6.8 1.6 -.7 -2.3 3.5 1.7 Nondurable goods materials 4.4 2.6 .8 -.8 3.6 2.1 Energy materials 2.2 .8 1.1 .4 -1.1 .7 Difference between revised and earlier growth rates (percentage points) Total index -1.0 -1.1 -1.0 .2 .8 -.4 Products -1.2 -1.6 -1.5 -.5 1.0 -.7 Final products -.8 -1.4 -1.5 -.3 1.4 -.5 Consumer goods -1.1 -1.5 -1.1 -.8 -.4 -1.0 Durable consumer goods -.3 -1.0 -2.6 -3.2 2.2 -1.0 Automotive products .5 .6 -2.6 -6.6 1.7 -1.4 Home goods -1.1 -2.4 -2.1 -.3 2.3 -.7 Nondurable consumer goods -1.3 -1.8 -.7 .0 -1.1 -1.0 Equipment .0 -1.3 -1.7 .0 3.8 .1 Business equipment -1.1 -2.1 -2.1 .2 4.0 -.2 Industrial .5 .0 -2.5 .4 7.4 1.2 Information processing -1.3 -5.6 -1.0 -1.3 4.4 -1.0 Transit -1.6 4.3 -3.7 6.5 -.9 .9 Other -3.1 -3.1 -2.2 -3.5 3.2 -1.8 Defense and space 1.7 1.0 -1.0 -.8 2.6 .7 Intermediate products -2.6 -2.1 -1.6 -.6 -.1 -1.4 Construction supplies -2.9 -2.6 -1.6 1.2 2.0 -.7 Business supplies -2.4 -1.8 -1.8 -1.9 -1.3 -1.8 Materials -.6 -.1 -.3 .9 .5 .1 Durable goods materials -2.2 -.8 -.9 1.9 .9 -.2 Nondurable goods materials 1.4 .4 .1 -.7 .0 .2 Energy materials .4 1.2 .4 .2 -.1 .4 in 1992, growth in output in primary processing Capacity in some of these basic industries has industries averaged only 3A percent per year from remained flat. The annual capability for raw steel 1987 to 1992. By early 1993, output had approxi- has stayed near 114 million tons, as older mills mately recovered its peak (chart 3). have closed and new minimills have been built. So far in the nineties, capacity growth has slowed Aluminum mills have wrung some additional outto an annual rate of only about 1 percent; the rate of put of ingots from old potlines, but no new potlines capacity utilization in primary processing, which have been constructed. Cement clinker capacity had peaked at 88 percent in early 1989, recovered has contracted, and output and capacity in logging from its recessionary dive to a moderate rate of camps and lumber mills have been constrained by 84 percent in early 1993. environmental regulation that reduced logging on Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

594 Federal Reserve Bulletin • June 1993 3. Revised rates of growth in industrial production, by major industry group, 1987-92 Average annual rate of growth (percent) Series 1988 1989 1990 1991 1992 1987-92 Total index 4.4 1.5 .0 -1.8 23 L3 Manufacturing 4.7 1.6 -.3 -2.2 3.1 1.3 Primary processing 3.9 .9 -.6 -3.7 3.7 .8 Advanced processing 5.1 2.0 -.2 -1.6 3.6 1.8 Durable manufacturing 6.6 1.8 -1.0 -3.3 4.1 1.6 Lumber and products .1 -.8 -2.3 -6.8 6.4 -.7 Furniture and fixtures .3 1.3 -1.4 -6.0 5.2 -.2 Stone, clay, and glass 2.6 .0 -2.1 -7.7 3.7 -.8 Primary metals 8.7 -1.3 -.7 -7.6 2.7 .2 Iron and steel 12.7 -1.3 .2 -9.8 4.1 .9 Raw steel 12.6 -3.6 1.0 -11.2 4.0 .2 Nonferrous 3.1 -1.4 -2.2 -4.2 .7 -.8 Fabricated metal products 4.2 -1.3 -3.2 -4.6 1.8 -.7 Industrial and commercial machinery and compu equipment 13.0 3.8 .2 -3.3 9.8 4.5 Excluding computer and office equipment ... 10.3 3.8 -2.2 -6.3 3.5 1.6 Computer and office equipment 20.3 3.7 6.3 3.5 22.6 11.0 Electrical machinery 8.5 2.2 .4 1.3 6.2 3.7 Transportation equipment 5.2 4.3 -2.4 -4.8 .8 .5 Motor vehicles and parts 5.7 1.2 -5.6 -6.6 11.2 1.0 Autos and light trucks 4.6 3.3 -6.9 -8.8 10.6 .3 Aerospace and miscellaneous 4.7 7.1 .4 -3.3 -7.6 .1 Instruments 3.6 1.0 .3 .4 -1.1 .8 Miscellaneous manufactures 6.8 .4 -.3 -1.8 4.5 1.9 Nondurable manufacturing 2.3 1.3 .6 -.8 1.8 1.0 Foods 1.5 1.0 1.2 1.5 .6 1.2 Tobacco products 1.8 -1.1 .1 -4.4 3.0 -.2 Textile mill products -1.4 1.7 -3.2 -.2 8.1 .9 Apparel products -1.9 -3.2 -3.0 -.3 .5 -1.6 Paper and products 3.1 1.8 .6 .6 1.9 1.6 Printing and publishing .9 .2 -.3 -4.0 -1.9 -1.0 Chemical and products 6.0 3.1 2.3 -.4 3.3 2.8 Petroleum products 1.9 .4 1.0 -1.7 .4 .4 Rubber and plastics products 2.6 3.4 1.1 -2.5 5.0 1.9 Leather and products -.2 -.2 -3.6 -8.5 5.3 -1.5 Mining 1.3 -1.3 2.0 -1.5 -2.8 -.5 Metal mining 20.3 16.8 9.0 2.4 3.2 10.1 Coal 3.1 3.7 4.9 -2.5 -3.6 1.1 Oil and gas extraction -.3 -3.7 .8 -.9 -3.5 -1.5 Stone and earth minerals 2.3 -1.3 1.4 -8.1 -.3 -1.3 Utilities 5.0 3.5 1.1 2.1 -.2 2.3 Electric 4.7 3.4 2.4 1.8 -1.1 2.2 Gas 6.2 3.9 -3.3 3.0 3.1 2.5 millions of acres of federal timberland in the Pacific tion remains moderate, as capacity has expanded Northwest (chart 4). with output (chart 5). The performance of individual industries in this sector has been quite disparate in terms of cyclical volatility and growth. Advanced-Processing Industries Motor vehicles. Led by gains in the demand for These industries, which account for 70 percent of trucks, the motor vehicle industry began to recover manufacturing, have grown faster than the rest of in 1992 from three years of declining output and industrial production. In early 1992, they regained sales. In 1991, U.S. output of vehicles, which from their peak level; and in the first quarter of 1993, 1985 to 1988 had averaged about 11 million units, output was 12 percent higher than it was in 1987— fell below 9 million units, the lowest level since up more than 2 percent per year. Even so, utiliza- 1982. Although large, this contraction was not as Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production, Capacity, and Capacity Utilization since 1987 595 3. Revised rates of growth in industrial production, by major industry group, 1987-92—Continued Difference between revised and earlier growth rates (percentage points) SSeerriieess 1988 1989 1990 1991 1992 1987-92 Total index -1.0 -1.1 -1.0 .2 .8 -.4 Manufacturing -1.1 -1.3 -1.3 .1 1.0 -.5 Primary processing -1.2 -.3 -.5 .0 .4 -.3 Advanced processing -1.1 -1.6 -1.6 .0 2.1 -.4 Durable manufacturing -1.0 -1.3 -1.6 .8 2.8 -.1 Lumber and products -4.5 .7 -.9 .5 1.7 -.5 Furniture and fixtures -3.3 -.3 -2.0 .4 4.1 -.3 Stone, clay, and glass -3.8 -1.5 .1 2.4 2.3 -.1 Primary metals -1.6 -.3 .1 .6 -.9 -.4 Iron and steel -1.1 2.6 -.4 1.0 -2.1 .1 Raw steel .0 .0 .0 .0 .0 .0 Nonferrous -2.3 -4.8 .3 .2 .7 -1.1 Fabricated metal products -2.0 -2.2 -2.0 .6 .4 -1.0 Industrial and commercial machinery and computer equipment -.8 -3.2 -3.7 -.9 6.7 -.4 Excluding computer and office equipment -.6 -.4 -3.6 -.7 6.4 .2 Computer and office equipment -.8 -9.6 -2.9 -.3 8.9 -1.1 Electrical machinery 2.0 -.6 -1.3 2.5 4.6 1.4 Transportation equipment .2 2.2 -.8 1.7 2.2 1.1 Motor vehicles and parts .2 1.8 2.1 .0 2.1 1.2 Autos and light trucks -.3 3.2 1.1 -1.3 -1.5 .2 Aerospace and miscellaneous .2 2.5 -3.2 3.1 1.9 .9 Instruments -6.5 -4.8 -.1 -.8 -1.0 -2.6 Miscellaneous manufactures -.4 -6.8 -4.1 -1.3 4.4 -1.8 Nondurable manufacturing -1.3 -1.4 -.7 -.9 -1.2 -1.1 Foods -1.3 -1.6 -.8 6 -.8 -.8 Tobacco products .4 .6 1.1 -5.5 -2.6 -1.2 Textile mill products -1.2 -.4 -2.2 .1 2.6 -.3 Apparel products -5.2 2.2 2.4 -1.1 -1.1 Paper and products .2 1.5 -1.5 .8 .0 .2 Printing and publishing -2.7 -4.6 -3.4 -4.3 -2.8 -3.6 Chemical and products .6 .2 .6 -.9 -2.3 -.4 Petroleum products -1.5 -2.2 -1.0 -1.1 -.6 -1.3 Rubber and plastics products -3.3 .6 -.1 -2.3 -1.5 -1.3 Leather and products .2 -4.3 -.1 3.4 8.5 1.6 Mining -.5 .0 -.1 .0 -.5 -.2 Metal mining -2.4 1.6 .7 4.3 -2.0 .5 Coal -1.9 3.0 -2.2 1.0 -.2 .0 Oil and gas extraction .3 .2 .8 -1.2 -.8 -.1 Stone and earth minerals -4.5 -7.9 -3.5 1.4 1.9 -2.4 Utilities .6 1.0 .3 .9 .4 .6 Electric .1 .0 -.1 .0 .0 .0 Gas 2.3 4.7 2.3 4.4 1.4 3.0 great as the contractions between 1973 and 1975 less than 6V2 million units in the 1993 model year. and between 1978 and 1982, partly because this In contrast, reflecting the rising share of trucks in cycle had neither a curtailment in gasoline supplies overall vehicle sales, U.S. capacity to assemble nor so extreme a peak in output. The drop in light trucks increased about a million units to production of motor vehicles and related parts and 5XA million units over the same period. Domestic materials from its high in January 1989 to the producers shifted existing plants from autos to light trough accounted for about a third of the decline in trucks, built new truck plants, and increased hours manufacturing. of plant operation. Japanese auto producers contin- Widely publicized plant closings by Chrysler, ued to increase assembly capacity in the United Ford, and General Motors accompanied the down- States; "transplant" assembly capacity (mainly for trend in the production of automobiles. The Big autos) increased from about 1 million units in Three's auto assembly capacity in the United States 1986-87 to more than 2 million units currently. fell from more than 9Vi million units in 1986-87 to Altogether, U.S. assembly capacity for motor vehi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

596 Federal Reserve Bulletin • June 1993 3. Revised and earlier output, capacity, and utilization physical output data and indicate that the rate of in primary-processing industries capacity utilization, which had dropped from more than 80 percent in the mid-1980s to less than 60 percent at the trough, recovered to about 80 percent early in 1993. The utilization of light truck assembly capacity was much higher than that for automobiles; the capacity utilization rate for medium and heavy trucks also recovered strongly with output. Aerospace and miscellaneous transportation equipment. Output of transportation equipment aside from motor vehicles dropped 16 percent from the end of 1990 to early 1993, to its lowest level in seven years. Further curtailments in production seem inevitable. Output of aircraft and parts, boats and naval ships, and guided missiles is declining. (The only real strength is in heavyweight motorcycles and mountain bicycles, along with casino boats, ferries, and other smaller craft.) Sharp cutbacks in defense outlays have been the major drag; but the production of commercial transport aircraft, cles has declined about a million units since 1986— which doubled from 1987 to 1991, is also now 87 to about 1316 million units. With the increases falling. in assembly capacity in Canada and Mexico, how- The boom in output of civil transport aircraft ever, total North American assembly capacity has peaked in late 1991, although orders had already increased and has been more than ample to meet begun to decline. The boom was fueled by growing demand. demand for air travel. Airlines were hit, however, The revised output and capacity indexes, shown by decreased air travel in 1991 in response to the in the middle panel of chart 6, are based largely on Persian Gulf War and recession, by excess capacthe unit counts mentioned above (left panel); the ity, and by substantial price competition in 1992. indexes also incorporate an upward adjustment of New orders fell from more than 1,000 units in 1989 about 3 percent per year resulting from gains in the to an annual average of 243 units in 1991-92, and quality of vehicles—antilock brakes, airbags, more backlogs dropped as many airlines cancelled orders efficient engines, more amenities, and so on. The or delayed delivery past 1996 in response to record utilization rates for autos and trucks parallel the financial losses in 1991 and 1992. Deliveries 4. Output and capacity in primary metals, cement, and lumber Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production, Capacity, and Capacity Utilization since 1987 597 5. Revised and earlier output, capacity, and utilization Machinery and instruments. The diverse indusin advanced-processing industries tries that produce machinery, instruments, and parts Ratio scale, 1987 output = 100 include fast growers like computers, semiconductors, communications equipment, and medical — Earlier capacity —140 instruments along with others that produced less at their recent peaks than they had in the early 1980s. • Revised capacity Earlier output The output of industrial and commercial machinery and computer equipment grew 4.5 percent per Revised output year from 1987 to 1992;2 but the pace was less than half that if office and computing machines are — 80 excluded. Because of the phenomenal increase in 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 computers' performance per dollar, the index for Percent of capacity real production of computer and office equipment has doubled since 1987. Much of the output gain was registered during 1992 when the U.S. com- Earlier utilization gg puter industry emerged from a prolonged downturn. In 1991, shipments in current dollars were about 8 percent below their peak in 1988 and only Revised utilization 75 a few percentage points higher than they were in 1987; employment in the computer and office 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 equipment industry dropped 100,000 from its peak 1980 1985 1990 in 1984 to 416,600 in 1991. Excluding computers, output of nonelectrical peaked at about 160 planes a quarter in the first half machinery, which dropped about a tenth from peak of 1992 but dropped to 110 in the first quarter of to trough, recovered strongly in 1992 but remained 1993. Airframe makers announced further produc- below its 1989 high. Makers of engines and of farm tion cuts for 1993 and 1994; much of the current and construction machinery produced substantially backlog is not scheduled to be delivered until the less in 1992 than in 1980. In 1992, a rebound in last half of the decade. Shipments of complete residential construction, increased public construcmilitary aircraft have fallen from about 1,200 units tion, and the end of a strike at a major producer in 1987 to about 600 units in 1992 and 1993. boosted sales of construction machinery. Neverthe- With the sharp cuts in production, employment less, because of weakness in commercial construcand capacity utilization in the aerospace and mis- tion of office and apartment buildings and the low cellaneous transportation industries have dropped substantially. The utilization rate fell from 88 percent at its peak in the second quarter of 1989 to 2. Standard Industrial Classification (SIC) 35, formerly called 70 percent in early 1993. Nonelectrical Machinery. 6. Physical counts and Federal Reserve measures of output, capacity, and utilization for autos and light trucks Ratio scale, millions Ratio scale, 1987 output = 100 Ratio scale, percent FR capacity index Physical capacity Physical output I Li I I I I I I I I I I I I I 1980 1985 1990 1980 1985 1990 1980 1985 1990 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

598 Federal Reserve Bulletin • June 1993 level of industrial plant expansion, the level of ufactures, the output of instruments has been relaoutput of construction and mining equipment tively flat since 1988. The medical instrument busiremains near the weak 1987 level, far below earlier ness has been the only strong sector; the output of peaks. Although recovering somewhat late in 1992, guidance and navigation equipment has fallen suboutput of farm equipment also remains below ear- stantially with the decline in defense spending. The lier peaks. Fewer farmers, declines in net farm rate of capacity utilization for the overall instruincome and the real purchasing power of farm ments industry is low. equity, productivity gains, and conservation tillage As in the case of instruments, the industrial (which requires fewer trips and reduces wear on production index for manufactured nondurable the tractor) have reduced the sales of farm goods has in recent years exhibited a muted cycle equipment. and a slow rate of growth. Among advanced pro- The production of electrical machinery, which cessors, the output of foods grew only about had flattened in 1989-90, advanced sharply from PA percent per year from 1987 through 1992— the trough to new highs. Bolstered by gains in about half as fast as in the preceding five years. semiconductors and communications equipment, Changing tastes and lifestyles and reduced family output increased at a 33/4-percent annual rate from size have shifted production from beef, liquor, 1987 to 1992. With a double-digit gain in 1992, the whole milk, and large cakes and pies to poultry, production index for semiconductors and related beer, skim milk, frozen yogurt, and frozen convecomponents has risen more than 50 percent since nience foods. The production of tobacco products 1987, whereas prices of semiconductors have has been trendless for a decade. In contrast, the drifted down. This strong growth is related to the output of finished chemicals grew more rapidly; increasing use of semiconductors and related this growth was led by drugs and medicines, which devices in computers, communications equipment, advanced a third from 1987 to early 1993. and various recovering industries such as motor The industrial production indexes for printing vehicles. and publishing, paints, apparel, and leather goods, The output of communications equipment, which however, were lower in early 1993 than in 1987. A eased a bit in the recession, rose sharply in 1992 to continued uptrend in imports of apparel and leather a level more than 25 percent higher than that in goods contributed to that decline. The output of 1987. One source of the strength is the robust printed products was reduced in the early 1990s growth of the cellular radiotelephone system and of partly because of a decline in advertising revenues fiber optics. During 1992, cellular service became during the recession, which also restrained demand available in each U.S. market block, and the num- for business publications and forms. A drop-off in ber of new cellular subscribers increased more than corporate takeover activity led to less financial 200,000 per month to about 10 million by the end printing. Declines in tax revenues cut school and of the year. Net exports of radio and television library budgets for educational materials. Newscommunications equipment have risen substan- paper industry receipts in 1992 declined for the tially in recent years. fifth year as newspapers' share of total media Other components of electrical machinery exhib- advertising and the circulation of daily newspapers ited less robust growth. The output of appliances shrank further. and television sets and of electric motors and generators and related parts dropped sharply in the recession and exhibited moderate growth through Mining 1992. In the first quarter of 1993, output of appliances and television sets rose to 121 percent of From 1987 to mid-1991, mining production, as a 1987 output. However, the output of lighting and whole, changed relatively little, but afterward it wiring products, storage batteries, and transformers declined a few percentage points. The easing was and switchgear was lower at the end of 1992 than it due partly to weak demand for coal, stone, and was in 1987. earth minerals but mainly to the renewed decline in In contrast to the cyclical fluctuations of motor crude oil production and the low rate of oil and gas vehicles, some machinery, and miscellaneous man- well drilling that developed as the price of oil Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production, Capacity, and Capacity Utilization since 1987 599 retreated after the defeat of Iraq. The estimated million barrels. For more than twenty years, output index of mining capacity declined as well. Capac- in the lower forty-eight states has been trending ity utilization edged down in 1992 and stayed down—dropping from 9.4 million barrels per day within the 85-90 percent range of recent years in 1970 to 5.4 million in 1992. With the aging of (chart 7). 011 fields, oil well productivity has fallen to about Mining of metal ores increased sharply from the 12 barrels per day per well from about 13.5 barrels depressed levels of the mid-1980s. New technol- in 1987-88 and more than 18 barrels in the early ogy and new mines contributed to the doubling of 1970s. production of gold and zinc ores since 1987; Moderate prices of crude oil and environmental upgraded domestic facilities and disruptions in for- restrictions in some areas have depressed drilling eign supplies helped raise output of copper ore in activity in the United States. Drilling for oil and the United States by 40 percent. gas in terms of either footage or well completions Production of energy by mines, refineries, and has fallen to less than a third of its peak level in the utilities, representing about 15 percent of industrial early 1980s. The number of active or available production, has been sluggish for the past twenty rotary drilling rigs has also been shrinking. years. A key factor has been the long-term down- In contrast to that of crude oil, the output of trend in the production of crude oil and natural gas, natural gas, which also declined through 1986, which has dropped more than 20 percent since has recovered; and, despite some weather-related 1973. This decline has offset much of the gain in weakness since the recession, coal has trended up. coal mining and nuclear generation of electricity. The gains in coal mining have been primarily west After a slight rise in 1991 related to the spurt in of the Mississippi. oil prices during the Persian Gulf crisis, production Refinery production, which had recovered from of domestic crude oil resumed its decline. From its lows in the early 1980s, has been basically flat early 1991 to early 1993, it fell 500,000 barrels per since 1988. Total refinery production of motor gasday to 7 million barrels per day—the lowest level oline had fallen to 6.3 million barrels in 1982-83 since 1960. Since 1988, when Alaskan output because of the high price of oil and recovered to peaked, the daily rate of production has dropped a 6.8 million barrels in 1986-87, when the price of oil fell. From 1988 to 1992, it stayed at 7 million 7. Revised and earlier output, capacity, and utilization barrels per day, about the same as in the late 1970s. in mining Distillate fuel oil has equalled nearly 3 million barrels per day in the past few years, below the rate Ratio scale, 1987 output = 100 in the late 1970s but up from that in the mid-1980s. In 1992, refinery capacity shrank. More stringent requirements mandated by the Clean Air Act Earlier capacity—120 Amendments of 1990 for summer gasoline vapor Revised capacity —110 pressure and oxygenated gasoline, as well as the Earlier output upcoming reduction in allowable sulfur content of diesel fuels, necessitated the upgrading of exist- Revised output ing refineries. Several idle marginal refineries permanently closed. The Department of Energy Percent of capacity reports that, at the start of 1993, operable crude distillation capacity dropped to 15.1 million barrels Earlier utilization per day, down about 500,000 barrels per day from its average level during 1985-92. Input to crude oil distillation units rose so that utilization increased from 86 percent in 1991 to 88 percent in 1992. this Revised utilization rate is moderate for refining; it is well above the low rates of the early 1980s, when the high price of oil cut demand, but below the rates in the decade before the Arab oil embargo. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

600 Federal Reserve Bulletin • June 1993 Utilities demand is expected to reduce the margin of excess capacity a few percentage points. From 1986 to 1989, production by electric and gas utilities increased 13 percent; it was spurred by relatively low energy prices and a temporary SIZE OF THE REVISION surplus of deliverable natural gas that caused a rebound in consumption, particularly industrial The downward revision in industrial production consumption, of natural gas from its 1986 low. The was centered in manufacturing, especially in nongrowth in sales by electric and gas utilities slowed durable goods industries other than textiles, paper, in 1990-92 because of episodes of mild weather and leather goods. The growth of nondurables from and economic weakness. Cool weather caused the 1987 through 1992 was cut in half, to 1 percent per generation of electricity to decline in the summer year (table 3). Especially large downward revisions of 1992, but stronger industrial demand for power were made to printing and publishing and to paving and a return of more normal weather boosted utility and roofing materials (part of petroleum products); sales in late 1992 and early 1993 (chart 8). output in these industries as well as in apparel and The growth of capacity at utilities in the past few leather products was lower in 1992 than it had been years has kept up with the slow growth of output so in 1987. The output indexes show foods, tobacco that the rate of capacity utilization has changed products, apparel, and rubber and plastics products little. However, the utilization rate is projected to growing more slowly than they were previously rise. According to the North American Electric shown to grow. Reliability Council, the nation's utilities intend to In durable manufacturing, several downward increase generating capacity at an annual rate of revisions, especially to fabricated metal products, about IVi percent between 1992 and 2001, com- instruments, and miscellaneous manufactures, were pared with a projected annual growth in summer largely offset by upward revisions to electrical peak demand of l4/s percent. The more rapid rise in machinery and transportation equipment. For durable manufacturing, the greater rebound from the trough shown by the revised index offset the lower levels in 1989 to 1991, so that by the end of 1992 the revised index exceeded the earlier figures. 8. Revised and earlier output, capacity, and utilization in utilities For mining, particularly for coal, oil, and gas, the overall 1987-92 revision in output was small. For Ratio scale. 1987 output = 100 most series, monthly physical output figures, sup- Revised capacity __ ^ ^ plied by the Bureau of Mines or the Department of — Earlier capacity— 120 Energy, were adjusted to more complete annual data from the same sources. This process typically affected specific year-to-year movements rather than the overall 1987-92 rate of growth. In the case of stone and earth minerals, however, monthly output was estimated largely on the basis of kilowatt hours purchased by that industry. These estimates Percent of capacity were revised substantially downward to match the annual physical product figures provided by the Revised utilization Bureau of Mines. The output index for utilities was revised upward because of a correction to the measurement of gas transmission (the output of electric utilities was revised only slightly). Previously the sales of gas by major pipeline companies were used to measure monthly transmissions. However, most interstate 1980 1985 1990 pipeline companies have become open-access Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production, Capacity, and Capacity Utilization since 1987 601 transporters and, since 1987, have increasingly ity index is dividing an industrial production (IP) transported gas owned by others. As a result, sales index by a utilization rate provided by an outside of gas owned by pipelines fell far below transmis- survey (U), that is, implied capacity = IP/U. Thus, s s sions. In this revision, pipeline sales were replaced if in 1987, IP = 100, and U = 80 percent, then s by cubic feet of natural gas delivered to consumers. implied capacity = 100/0.8 = 125. For the most Whereas before the revision a slight decline was part, utilization rates from surveys are revised only shown, the new series shows that gas transmission slightly, if at all. Thus, the Federal Reserve capachas not been falling; from 1987 to 1992, output of ity indexes are typically revised with industrial gas utilities including transmission grew at an production indexes, and the Federal Reserve rates annual rate of 2.5 percent. of utilization change relatively little on average in a revision (table 5). The sharper increase in 1992 in the revised industrial production indexes, however, REVISIONS TO CAPACITY has raised utilization above its unrevised level in the fourth quarter of 1992. The growth of industrial capacity from the end of This revision was conducted at the end of a very 1986 to the end of 1992 averaged 1.7 percent per sluggish period. Given the lack of direct capacity year, 0.6 percentage point lower than the rate measures, the capacity indexes are often inferred shown before the revisions (table 4). In manufac- indirectly. Making such inferences when output turing, large downward revisions to output and growth has been particularly slow and utilization capacity indexes are evident in printing and pub- rates are relatively low has the danger of yielding lishing, instruments, and miscellaneous manufac- underestimates of capacity and its growth. Yet, an tures. As explained below, the downward revisions alternative measure of capacity utilization reported in capacity growth reflect not only new data on by the National Association of Purchasing Managecapacity and utilization but also the downward ment, Inc., currently shows higher rates of utilizarevisions in the industrial production indexes. tion in manufacturing and, implicitly, a lower index The revised capacity indexes are derived from of capacity. (1) the survey by the U.S. Bureau of the Census of utilization rates in manufacturing establishments for the fourth quarter of years through 1990, TECHNICAL ASPECTS OF THE REVISION (2) output and capacity data in physical units from various sources through 1992, and (3) estimates of In some respects, the revised production indexes capital stock derived through the perpetual inven- look much the same as before. Most noticeably, the tory method from investment spending by indus- 1987 weight and comparison base has been maintry.3 Investment spending comes from the Annual tained, and the structure of the major market and Survey of Manufactures (ASM) through 1991 and industry groups has remained basically the same. from the Census Bureau's quarterly survey of plant However, the updating of monthly data and the and equipment expenditures after 1991. introduction of comprehensive annual data from The Federal Reserve indexes of sustainable the ASM have significantly affected the level and annual capacity are designed specifically to accom- the movement of the indexes. pany the indexes of production and are also Many smaller changes were also made in the expressed as percentages of production in 1987. A revision. The structure was modified to conform to basic step in estimating annual levels of the capac- the 1987 Standard Industrial Classification (SIC). Some sources of data were lost, and so some series based on those sources were dropped or combined 3. A methodology of the capacity and utilization measures is with other series. However, the introduction of new found in Richard D. Raddock, "Recent Developments in Industrial series increased the number of individual series to Capacity and Utilization," Federal Reserve Bulletin, vol. 76 (June 255. Monthly indicators for other series also 1990), pp. 411-35, especially pp. 424ff. One of the key sources is the U.S. Bureau of the Census: "Survey of Plant Capacity," Current changed. For example, some series that had been Industrial Report MQ-C1, for various years. This survey provides based on an industry's monthly purchases of elecutilization rates, not capacity estimates, for manufacturing estabtricity (kilowatt hours) became based on monthly lishments at the four-digit SIC level. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

602 Federal Reserve Bulletin • June 1993 4. Compound annual rates of growth in end-of-year capacity, by major industry group, 1966-92 Percent Difference between revised Item 1966-92 1966-74 1974-82 1982-86 1986-92 and earlier rates for 1986-92 Total Industry 2.8 3.9 2.9 2.4 1.7 -.6 Manufacturing 3.2 4.1 3.3 3.2 2.1 -.7 Primary processing 2.1 4.2 1.6 .4 1.3 -.5 Advanced processing 3.8 4.1 4.2 4.5 2.4 -.7 Durable 3.5 3.8 3.8 4.0 2.2 -.4 Lumber and products 1.7 3.1 .8 2.4 .5 -2.0 Furniture and fixtures 3.1 4.9 2.6 2.1 2.0 -.4 Stone, clay, and glass products 1.3 2.5 1.4 .6 .1 -.7 Primary metals -.1 1.8 .2 -3.8 -.5 -.2 Iron and steel -.9 .7 -.1 -5.9 -.7 .1 Raw steel -1.1 .2 .0 -6.0 -1.0 -.3 Nonferrous 1.3 3.8 .7 -.3 -.1 -.6 Primary copper -.4 1.2 -.7 -3.6 .0 -2.0 Primary aluminum 1.4 5.6 1.5 -5.6 .8 .2 Fabricated metal products 1.6 3.2 1.7 .1 .4 -.6 Industrial and commercial machinery and computer equipment 6.4 4.7 88..88 9.3 3.4 -.5 Electrical machinery 5.2 6.4 55..44 4.8 3.7 .1 Transportation equipment 2.7 3.0 2.0 3.5 2.7 .6 Motor vehicles and parts 3.2 4.6 1.8 2.5 3.7 2.1 Autos and light trucks1 5.7 1.8 .1 Aerospace and miscellaneous 2.i i.3 i.i 4.2 1.8 -.8 Instruments 5.4 7.8 5.6 4.9 2.4 -2.7 Miscellaneous 2.1 4.9 .9 .0 1.6 -.7 Nondurable 2.9 4.5 2.5 2.1 1.9 -1.1 Foods 2.5 3.0 3.0 2.2 1.4 -1.1 Textile mill products 2.0 4.7 .8 .3 1.1 -.5 Apparel products 1.3 2.6 1.0 1.7 -.2 -2.0 Paper and products 2.7 4.1 1.9 2.2 2.4 ..11 Pulp and paper 2.4 3.3 1.5 2.1 2.7 --..11 Printing and publishing 3.2 3.1 3.4 4.5 2.1 -3.1 Chemicals and products 3.9 7.1 2.9 1.1 3.0 -.3 Plastics materials 7.0 13.4 5.0 2.3 4.6 -3.2 Synthetic fibers 4.4 9.9 2.8 -.7 3.2 2.4 Petroleum products 1.6 4.5 1.8 -1.2 -.4 -.8 Rubber and plastics products 5.5 9.2 3.6 5.6 3.2 -.7 Leather and products -3.2 -1.2 -3.8 -5.6 -3.1 -.4 Mining .0 -.3 2.2 -.2 -2.2 -.4 Metal mining 1.4 .5 1.0 -2.0 5.5 -1.0 Coal 2.6 2.4 3.6 2.0 1.8 -.4 Oil and gas extraction -.6 -1.2 2.5 -.3 -3.9 .0 Oil and gas well drilling .7 -.8 17.4 -5.1 -12.8 -.3 Stone and earth minerals .9 2.7 .2 -.1 .2 -3.3 Utilities 3.1 6.3 2.1 1.0 1.5 .2 Electric 4.2 8.2 3.3 1.8 2.0 .2 Gas .3 2.6 -1.0 -1.5 .2 .0 1. Series began in 1977. production-worker hours. Seasonal factors were sources are the basis for 123 series that represent recalculated.4 36 percent of the total index. Input data constitute Typically, either monthly output or monthly 74 production-worker-hour series (34 percent of input data are used to estimate individual production indexes. Monthly output or shipments in tion of series" is available with a diskette of historical data of physical units from many private or government industrial production, capacity, and capacity utilization from Publication Services, Board of Governors of the Federal Reserve System, Washington, DC 20551. A typed structure table may be 4. A table "Industry structure and series composition of indus- obtained from the Industrial Output Section, Division of Research trial production: classification, value added weight, and descrip- and Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production, Capacity, and Capacity Utilization since 1987 603 5. Revised and earlier capacity utilization rates, by major industry group, 1987-921 Percent of capacity, seasonally adjusted Revised Earlier IItteemm 1987-92 1988-89 1990-91 1987-92 1988-89 1990-91 1992:Q4 1992:Q4 average high low average high low Total industry 81.7 84.8 78.3 80.7 81.8 85.0 78.4 79J Manufacturing 81.0 85.1 76.6 79.6 81.3 85.1 77.2 78.2 Primary processing 84.1 89.1 77.9 82.7 84.4 89.0 77.9 82.2 Advanced processing 79.8 83.3 76.1 78.3 80.0 83.6 76.6 76.6 Durable 78.7 83.9 73.8 77.7 79.3 84.0 74.8 75.6 Lumber and products 86.7 93.3 76.8 87.6 83.1 91.2 72.9 80.1 Furniture and fixtures 80.9 86.8 71.7 79.8 82.8 88.3 74.5 76.0 Stone, clay, and glass products 79.0 83.7 71.0 77.7 79.3 86.4 70.8 74.6 Primary metals 82.5 92.9 74.3 81.2 82.9 91.6 73.6 82.5 Iron and steel 81.5 95.7 72.3 80.8 80.8 92.0 68.7 82.2 Raw steel 81.8 92.7 71.2 81.2 80.7 94.1 67.1 78.6 Nonferrous 83.9 88.9 75.9 81.8 86.3 95.0 81.1 83.0 Primary copper 79.4 85.9 73.6 87.1 81.9 97.9 68.8 89.6 Primary aluminum 95.8 100.4 97.3 97.8 97.2 103.5 97.7 99.3 Fabricated metal products 77.2 82.0 71.7 75.1 79.5 85.1 73.9 76.9 Industrial and commercial machinery and computer equipment 77.9 83.7 73.0 81.7 78.3 83.5 74.7 78.5 Electrical machinery 80.4 84.9 76.8 81.2 79.2 83.1 75.1 74.9 Transportation equipment 76.6 84.2 70.1 72.0 77.2 84.6 70.1 70.1 Motor vehicles and parts 72.3 84.5 57.9 72.1 75.0 85.5 58.1 75.3 Autos and light trucks 73.4 89.6 53.6 74.9 71.2 83.6 47.4 73.8 Aerospace and miscellaneous 81.0 88.3 78.1 72.0 79.2 86.2 72.3 65.5 Instruments 77.9 81.2 75.1 73.2 78.4 83.9 74.8 71.1 Miscellaneous 77.0 80.1 72.9 77.3 81.4 85.5 80.4 80.2 Nondurable 84.1 86.8 80.4 82.1 84.0 86.7 80.3 81.9 Foods 81.7 83.3 80.8 81.1 81.0 83.0 79.7 79.4 Textile mill products 87.8 92.1 78.7 90.1 88.1 91.2 80.2 89.1 Apparel products 80.2 84.2 74.6 78.6 79.3 84.2 71.5 73.9 Paper and products 91.1 94.9 86.0 88.4 91.4 95.8 86.5 88.8 Pulp and paper 93.7 98.1 90.2 91.0 93.3 97.7 87.2 91.8 Printing and publishing 85.2 92.3 78.4 77.2 85.6 90.4 81.2 78.3 Chemicals and products 82.2 85.9 78.5 81.4 81.8 86.8 77.9 81.7 Plastics materials 89.5 97.0 75.5 82.8 90.7 98.9 79.0 82.0 Synthetic fibers 89.8 99.7 77.3 86.8 86.3 94.5 72.5 83.0 Petroleum products 86.0 88.5 84.2 89.7 87.3 90.3 86.2 90.7 Rubber and plastics products 85.2 90.5 78.5 82.3 86.5 90.4 79.0 85.0 Leather and products 79.9 83.8 75.4 85.4 79.4 88.4 71.4 75.1 Mining 85.8 87.0 86.8 87.4 85.7 87.2 86.2 86.2 Metal mining 81.4 87.5 79.5 87.3 78.0 87.2 73.6 79.1 Coal 86.7 91.4 83.1 81.6 86.7 94.4 81.6 80.2 Oil and gas extraction 86.3 86.9 87.8 90.0 86.5 86.6 86.2 90.6 Oil and gas well drilling 54.0 60.7 54.0 65.0 53.5 58.8 51.2 62.0 Stone and earth minerals 83.9 90.0 77.6 79.5 85.2 94.3 76.1 73.5 Utilities 85.0 92.6 83.4 87.1 84.3 92.3 81.6 86.2 Electric 88.2 94.8 87.4 89.0 89.1 96.2 87.0 91.1 Gas 74.6 85.5 68.3 80.7 69.4 80.3 62.3 70.2 1. The "high" columns refer to periods in which utilization generally generally bottomed out. The monthly highs and lows are specific to each peaked; the "low" columns refer to recession years in which utilization series, and all did not occur in the same month. the total index) and 40 kilowatt-hour series (27 per- represent 2 percent of the total industrial produccent). Each of these types of monthly data has been tion index. A cubic spline generally is used to updated or revised. interpolate monthly values from the quarterly Quarterly production data in physical units have figures. been introduced to maintain the representation of Revised Federal Reserve indexes of electric physical measures even though the Census Bureau power use by industry from 1986 were published in and other sources have discontinued the monthly February 1993 and are incorporated in the new publication of some of these data. The quarterly industrial production indexes for monthly compoproduction data are the basis for sixteen series that nents based on the use of electricity. The Federal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

604 Federal Reserve Bulletin • June 1993 Reserve Banks conduct a voluntary monthly survey of gasoline, rather than to deflated output figures of electric utilities, which report sales to industries derived from the ASM. This alternative form of classified by SIC codes; the respondents also data accounts for some slight difference between include some industrial cogenerators. The revision the Federal Reserve and ASM-based indexes of reflects conversion of the power series since Janu- output. ary 1987 to the 1987 SIC and the incorporation of Cyclical movements in productivity are used in more comprehensive annual and monthly source estimating those monthly indexes based on data, where available. New power series include production-worker hours or kilowatt hours of elecindexes for converted paper products (SIC 267) tricity used by industrial plants. Through 1991, the and plastics products (SIC 308) and exclude in- movements in output per hour can be inferred by dexes for SIC 264, 266, and 307, which no longer adjusting the monthly hours data to more compreexist in the 1987 SIC. hensive annual output measures, such as those The U.S. Bureau of Labor Statistics (BLS) developed from the ASM figures. Given the lack of revises its monthly survey data to new levels based such annual output data since 1991, the cyclical on the number of employees covered by unemploy- rebound in productivity since then must be estiment insurance in March. The last available bench- mated from other information such as (1) the movemark was for March 1991. In the estimation of the ments of output-input ratios in previous cyclical Federal Reserve production indexes, the monthly recoveries and (2) the productivity changes shown worker hours (whether or not benchmarked by in series based on monthly output data in physical BLS) are further adjusted to annual production units. Other indicators of current production, such levels derived largely from the ASM. as manufacturers' shipments and inventories in Estimates of real output derived from the ASM constant dollars, are used to corroborate the current for 1988 through 1991 determine most of the trends in output-input ratios. revised annual indexes of production in manufac- Because the revised industrial production turing; the Census of Manufactures, a more com- indexes follow the 1987 SIC, a number of plete count of the universe, provides indexes for changes—including splits or recombinations of 1982 and 1987 and will do so for 1992. Histori- series—occurred. One change involved the shift of cally, the ASM figures tend to show less growth some military equipment from SIC 36, Electrical than do those from the census. Also, the introduc- Machinery, into SIC 38, Instruments; this shift tion of a new panel of respondents in 1989 appar- lowered the growth of this relatively small industry ently caused an understatement of growth in that group more noticeably than it raised the growth of year. Consequently, the estimates of output derived the larger electrical machinery group.6 from the ASM were adjusted upward by V2 percent in 1988 and about IV2 percent in the years from 1989 to 1991. As shown by table 6, the Federal 6. Manufacturing output Reserve's index of manufacturing output has been Index, 1987 average = 100 revised downward to levels close to the adjusted Annual Survey Federal Reserve levels derived from the ASM.5 YYeeaarr of Manufactures Some of the individual production indexes are Earlier Revised Unadjusted Adjusted benchmarked to annual data that are expressed in 1988 105.8 104.7 104.5 104.9 physical volumes, such as tons of steel or gallons 1989 108.9 106.4 104.8 106.4 1990 109.9 106.1 104.9 106.1 1991 107.5 103.7 102.1 103.7 1992 109.7 106.9 n.a. n.a. 5. Gross output at the four-digit SIC industry level equals value added plus the cost of materials. The current dollar figures from the ASM are deflated, for the most part, by the BLS's producer price indexes. The main exception is the hedonic price index used to 6. More specifically, search, detection, navigation, and guidance deflate computers. The deflated four-digit industry output figures systems and equipment, part of old SIC 3662, were transferred to are indexed on a 1987 base, weighted with proportions based on part of new SIC 3812; hydrological, hydrographic, meteorological, value added in 1987 reported in the Census of Manufactures, and and geophysical equipment, (also part of old SIC 3662) to part of aggregated. This is essentially the same method of aggregation SIC 3829, Measuring and Controlling Devices, not elsewhere clasused to combine the Federal Reserve's indexes of production. sified; and X-ray apparatus and tubes (old SIC 3693) to SIC 3844,5. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production, Capacity, and Capacity Utilization since 1987 605 The separate series on government-owned and -operated army, air force, and navy ordnance facili- Availability of Output, Capacity, and ties and navy shipyards were eliminated because Utilization Estimates the ASM and the Census of Manufactures provide no annual data for benchmarking the available Current estimates of output, capacity, and utilization employment data. are published first in the Federal Reserve statistical release G. 17(419), "Industrial Production and Capac- In calculating new seasonal adjustment factors, ity Utilization," and then in the statistical tables of the the staff applied the X-11ARIMA program of Sta- Federal Reserve Bulletin. All data shown in the release tistics Canada to data through October 1992. Seawill be available on the day of issue through the sonal factors were forecast twelve months ahead to Department of Commerce's online Economic Bulletin October 1993. In cases in which cyclical move- Board (202-377-3870). ments appeared to distort seasonal factors, some Diskettes containing either historical data (through original values were replaced with maximum likeli- 1985) or revised data (from 1986 to those most hood estimates of more typical values before run- recently published in the G.17 statistical release) are ning the X-l 1ARIMA program. A prior adjustment available from Publications Services, Board of Goverfor Easter, which may fall in March or April, was nors of the Federal Reserve System, Washington, DC also made for some physical product or kilowatt- 20551 (202-452-3245). Estimates for total industry hour series. The Easter adjustment factor was later and manufacturing, January 1981 to the latest available month in 1993, are shown in tables 5A and 5B of the combined with the factor computed by the X-l 1 to G.17 statistical release. Hard copy of the revised estiget the final seasonal factor. For production-worker mates of series shown in the G.17 release is available hours, some prior adjustment may have been upon written request to Industrial Output Section, Mail required when holidays, specifically Easter and Stop 82, Division of Research and Statistics, Federal Labor Day, occurred during the pay period contain- Reserve Board, Washington, DC 20551. A table ing the survey week for the BLS employment "Industry structure and series composition of indussurvey. • trial production: classification, value added weight, and description of series" is also available upon written request to the Industrial Output Section. A similar table is available for the capacity indexes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

606 Industrial Production and Capacity Utilization for March 1993 The revised data described in the previous article Industrial production was unchanged in March, were released for publication on May 14. What after having shown strong gains since October. In follows is the summary of the earlier, unrevised part, the slowdown reflects the loss of output after indexes released on April 15. the severe mid-March storm along the East Coast; Industrial production indexes Twelve-month percent change Twelve-month percent change Durable manufacturing I 1988 1989 1990 1991 1992 1993 1988 1989 1990 1991 1992 1993 Capacity and industrial production Ratio scale, 1987 production = 100 Ratio scale, 1987 production = 100 —— TToottaall iinndduussttrryy 140 —— MMaannuuffaaccttuurriinngg 140 CCaappaacciittvv CCaappaacciittyy —— — — 120 - — 120 - - 100 - 100 Production Production 8800 80 1 1 1 1 1 1 1 1 1 I 1 1 1 1 1 1 1 1 1 1 1 1 1 Percent of capacity Percent of capacity Total industry Manufacturing Utilization Utilization J I I I I I I I I L J I I I I L 1981 1983 1985 1987 1989 1991 1993 1981 1983 1985 1987 1989 1991 1993 All series are seasonally adjusted. Latest series, March. Capacity is an index of potential industrial production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

607 Industrial production and capacity utilization1 Industrial production, index, 1987=100 Percentage change Category 11999922 11999933 19922 1993 2 MMaarr.. 11999922 ttoo Dec.r Jan.r Feb/ Mar. P Dec.r Jan.1 Feb.r Mar.P MMaarr.. 11999933 Total 110.0 111.4 112.0 112.0 .5 .3 .6 .0 4.1 Previous estimate 110.8 111.3 111.8 .4 .5 .4 Major market groups Products, total3 112.3 112.7 113.3 113.3 .9 .3 .5 .0 4.4 Consumer goods ... 113.4 113.4 114.2 114.0 .7 .0 .7 -.1 4.3 Business equipment 130.2 131.8 133.0 133.4 1.9 1.3 .8 .4 9.8 Construction supplies 98.4 99.5 100.7 100.5 -.5 1.2 1.1 -.2 3.9 Materials 109.0 109.3 110.0 110.0 .0 .3 .6 .0 3.7 Major industry groups Manufacturing 111.8 112.8 113.3 113.4 .5 .8 .5 .1 4.5 Durable 111.2 112.4 113.3 113.4 .9 1.1 .7 .1 6.0 Nondurable 112.7 113.2 113.4 113.3 .0 .4 .1 .0 2.7 Mining 98.5 98.0 95.1 94.0 -.9 -.5 -3.0 -1.2 -3.6 Utilities 114.2 110.1 114.6 115.6 1.7 -3.6 4.1 .8 7.3 Capacity utilization, percent MMMEEEMMMOOO CCCaaapppaaaccciiitttyyy,,, pppeeerrr--ccceeennntttaaagggeee 1992 1993 ccchhhaaannngggeee,,, AAvveerraaggee,, LLooww,, HHiigghh,, MMMaaarrr... 111999999222 11996677--9922 11998822 11998888--8899 Mar. Dec.r Jan.r Feb.r Mar.P tttooo MMMaaarrr... 111999999333 Total 82.0 71.8 85.0 78.4 79.6 79.8 80.1 79.9 2.1 Manufacturing 81.3 70.0 85.1 77.5 78.5 79.0 79.2 79.1 2.4 Advanced processing 80.8 71.4 83.6 76.1 77.0 77.4 77.5 77.3 2.9 Primary processing .. 82.3 66.8 89.0 80.8 82.2 83.0 83.5 83.5 1.0 Mining 87.4 80.6 87.2 84.9 85.8 85.4 82.8 81.8 .1 Utilities 86.6 76.2 92.3 83.1 87.5 84.3 87.7 88.3 .9 1. Data seasonally adjusted or calculated from seasonally adjusted 3. Contains components in addition to those shown, monthly data. r Revised, 2. Change from preceding month. p Preliminary. available evidence suggests that these losses were ness equipment reflected a small decline in the only partly made up by month-end. The industries production of industrial equipment, which had most affected by the storm include textiles, steel, grown more than 0.5 percent a month since Octofurniture, tobacco, and coal mining, although the ber, and a slight easing in the pace of production of exact magnitudes of these effects are tentative. information-processing equipment, which had Overall, the output of consumer goods, intermedi- grown at a rapid pace since December. Cutbacks in ate products, and materials were little changed in the output of defense and space equipment con- March; the production of business equipment tinue to weaken the industrial sector: During the increased 0.4 percent after an average gain of more past few months, production has fallen an average than 1 percent a month since October. At 112.0 per- of more than Vi percent a month. Production of cent of its 1987 average, total industrial production construction supplies slipped back slightly after was 4.1 percent above its year-ago level. Total increasing more than 1 percent in each of the industrial capacity utilization declined 0.2 percent- preceding two months. An increase in the output of age point, to 79.9 percent. nondurable materials was offset by a decline in Within consumer goods industries, declines in energy materials. Much of the increase in nondurathe production of motor vehicles and gasoline were bles reflected a pickup in paper production. mostly offset by gains in the output of appliances Manufacturing output edged up 0.1 percent as and residential utilities. The deceleration in busi- production of durables moved up slightly. Most of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

608 Federal Reserve Bulletin • June 1993 the impetus within durables came from the machin- the output of petroleum, textile, and tobacco prodery industries, while production in most other ucts dropped. Capacity utilization in manufacturing industries either rose only slightly or declined. The edged down 0.1 percentage point, to 79.1 percent. largest decline was in transportation equipment, Mining output declined, as continued weakness where aircraft manufacturing continued to contract; in oil and gas well drilling augmented the cutback the output of motor vehicles and parts also in coal mining. The output of utilities picked decreased for a second straight month. Within non- up a little with the persistence of relatively cool durables, paper production increased notably, but temperatures. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

609 Statement to the Congress Statement by John P. LaWare, Member, Board even as demands for their loans were dropping. of Governors of the Federal Reserve System, The resulting pattern of weak lending has been before the Subcommittee on Economic Growth apparent across much of the United States, but and Credit Formation of the Committee on Bank- the timing and severity of the slowdown have ing, Finance and Urban Affairs, U.S. House of varied somewhat by region. In the remainder of Representatives, April 2, 1993 my remarks, I will expand on this brief summary of recent developments. I appreciate the subcommittee's invitation to As the data that the banking agencies have discuss some of the factors influencing recent assembled for the subcommittee indicate, the national and regional trends in bank lending as pace of expansion of the assets and deposits of well as changes in the composition of banks' depository institutions has been quite slow or balance sheets. Traditionally, commercial banks negative in the past few years after a considerhave been central in financing economic activity. able advance in the 1980s. The growth of loans, In recent years, their relative importance has particularly business loans, has been sluggish, diminished somewhat, as other financial interme- although banks and other depositories have acdiaries and direct market sources of funds have quired large volumes of U.S. government and tended to substitute for bank credit. Neverthe- agency securities. less, commercial banks remain the major source The pattern of bank lending and the condition of short- and intermediate-term business credit— of banks have not been uniform across the and the dominant source of small business fi- United States and have mirrored the unevenness nancing—and thus continue to have a key func- of economic developments. Perhaps the New tion in the financial system. The recent weakness England area provides the best-known regional in the growth of bank loans has raised the issue of aspect to the credit crunch. The boom in the how well banks have been playing their interme- 1980s was unusually strong in this region, particdiation role and what their future contributions ularly with respect to real estate, and the fall in are likely to be. In view of the importance of the 1990s was commensurately sharp. The expethese and related issues, I would like to com- rience in New England points up the interconmend the committee for holding these hearings. nections between the real and financial econo- The weakness of bank lending to businesses mies: As the New England economy softened over the past couple of years is in some part a and real estate prices stopped rising and began to continuation of the trend toward a smaller bank- fall, the quality of bank portfolios deteriorated ing role to which I just alluded. A much more rapidly, causing current and prospective declines important factor, however, has been a consider- in bank capital and generating a need to constrain able falloff in the demand for bank credit. This lending. Of course, as the economy contracted, decline in demand has been mainly associated loan demand also fell. But the drop in loans on with a sharp reversal of some of the balance the books of New England banks doubtless was sheet trends that developed during the 1980s. sharper than would have been the case had these These efforts to strengthen balance sheets have banks felt better capitalized. As banks were had a pronounced effect on the demand for bank intent on quickly improving capital ratios and credit from both the household and, especially, reducing their exposure to further loss, some the business sectors. A related need by banks to creditworthy borrowers appear to have been repair their own balance sheets has led to a denied credit. Such problems have surfaced in tightening of banks' lending standards and terms other parts of the United States as well. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

610 Federal Reserve Bulletin • June 1993 The regional breakdown of the banking data these trends were based—especially that inflaindicates that commercial and industrial loans tion rates would continue unabated—proved inhave declined in the past few years in all parts of correct, pressures to reverse the debt buildup the United States but particularly in the West, and leveraging of the 1980s began to emerge. In Southwest, and Northeast. These areas, of particular, a collapse in commercial real estate course, have had pronounced economic difficul- undermined the assumption that this market proties that likely developed independently of bank- vided a good investment vehicle for borrowers ing conditions. In every region, construction and sound collateral for lenders. When the econloans also have contracted substantially. Other omy began to exhibit recessionary behavior, loan categories show more variation, however. businesses and households alike initiated efforts For example, residential real estate loans ex- to reduce their debt burdens and strengthen their panded in the central, midwestern, and south- balance sheets. western regions but contracted in the Northeast These efforts have focused not only on reducand the West in the 1990-92 period. Even com- ing debt levels but also on substituting equity for mercial real estate credit exhibited strength in debt, extending maturities to enhance liquidity, some areas, such as the central and midwestern and refinancing existing debt to lower interest regions but declined in the Southwest and on the costs. Therefore, the decline in debt owed by the coasts. Total lending has been weakest in the business sector has been particularly focused on Northeast, followed by the Southwest and the shorter-term instruments, including bank loans. West. In part, these loans have been paid down with the There are several reasons for weak loan proceeds of equity issuance. After seven years of growth. I will begin with the most important contraction, net funds raised in equity markets reasons: Households and businesses have opted by nonfinancial firms turned around in 1991, and to reverse the patterns of spending, investing, firms have been issuing new equity at record and borrowing that dominated the 1980s. As you rates in recent quarters. Bank loans also have are well aware, that decade was one in which been paid down with funds raised in bond marhouseholds, businesses, and, of course, the fed- kets. In addition, a great deal of bond issuance eral government very substantially increased has been directed toward refinancing existing their use of debt. Households rapidly added to high-cost bonds at lower interest rates. This their mortgage and other loan liabilities. Busi- process has greatly reduced the debt-service nesses simultaneously acquired a very heavy burdens on the corporate sector and has left debt burden. Their borrowing was in consider- business balance sheets considerably strengthable part related to an unprecedented substitu- ened. tion of debt for equity, much of it associated with It is fair to say, then, that much of the recent mergers, takeovers, or defenses against take- weakness in commercial and industrial loans is overs. During the decade ending in 1989, house- the result of vigorous efforts by businesses to hold debt rose at an average annual rate of about improve the health of their balance sheets. At the 11 percent, and growth of business debt over this same time, outlays to finance inventories and period averaged only a bit less, 10 percent. The capital have been less than the volume of internal debt growth of these sectors exceeded the 8 funds for nonfinancial corporations in the aggrepercent average rate of expansion of nominal gate, further limiting firms' demands for bank or gross domestic product (GDP) over this period. other credit. This extraordinary exercise in leveraging by the Some of the recent weakness in commercial business and household sectors was financed in and industrial lending by banks appears to be a no small part by banks. For example, business continuation of a longer-term downtrend in the and consumer loans at banks both expanded at relative importance of this type of business average annual rates of about 8 percent in the credit. Reasons for this slippage include in- 1980s; for bank mortgage holdings, annual creased competition from other sources of busigrowth averaged 12 percent. ness credit, such as finance companies and the When some of the assumptions upon which commercial paper market. The key role played Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to the Congress 611 by depressed demand in explaining the recent accelerated in the past few months. These develcontraction in commercial and industrial loans is opments, particularly the dramatic declines in pointed up by the simultaneous marked weak- longer-term interest rates, in turn, appear to owe ness or outright declines in these competing heavily to the markets' perception that, at last, sources of short-term credit to businesses. the federal government too is prepared to take The weakness in bank loans to the household meaningful steps toward putting its own financial sector also appears to be mainly a demand side house in order. phenomenon. The sluggishness in housing prices Although sluggish loan growth at banks apand construction activity, for example, has likely pears attributable largely to weak demand, it is depressed demand for mortgage credit, although clear that banks' appetite for loans has slackened the decline in home prices was nowhere near as over the past few years. The reason is that banks, severe as for commercial real estate. Perhaps too, found themselves in need of balance sheet more important, employment uncertainties that restoration after the 1980s. This need was a result accompanied the economic downturn and the of the same realities their household and business rather slow recovery caused households to take a customers were facing: The excessive loan liabilmore cautious approach to the use of debt. As a ities of these latter groups had become the deteresult, consumer credit outstanding contracted in riorating loan assets of banks. The impact of 1991 and was little changed last year. In part, the these asset-quality problems on bank lending anemic performance of consumer credit owed to policies was intensified by increases in minimum paydowns using the proceeds of mortgages refi- acceptable capital ratios required both by regunanced at rates that are well below consumer lators and by market forces. loan rates, particularly on an after-tax basis. In Our periodic surveys of bank lending officers addition, weak consumer credit has been associ- confirm that a distinct shift toward tighter stanated with the use of household financial assets, dards for approving loan applications as well as including bank deposits now yielding only 2 stiffer lending terms began several years ago. percent to 3 percent to pay down, or to limit, the Greater stringency was most notable with regrowth of, loans. spect to commercial real estate lending, but it As with businesses, these efforts, although was quite marked as well for business lending. depressing bank lending and the level of con- The tighter terms have included lower ceilings on sumer debt, have contributed to a marked the size of credit lines offered, increases in the strengthening of household balance sheets. The cost of these lines, and additional collateral reuse of deposits and other monetary assets to quirements. Also, the relative cost of bank loans, constrain household debt growth, incidentally, as measured by the unusually wide spread behas contributed to the very weak performance of tween the prime rate and banks' cost of funds, is the broader measures of the money supply over high. the past two years. Thus, rather than being Although banks apparently ceased tightening indicative of a restrictive monetary policy or a in 1991, there has been little evidence of easing. lack of adequate funding for the economy, slow In and of themselves, tighter lending standards money growth rather is the obverse of the re- and wider lending spreads in a time of an ecochanneling of credit flows out of banks and into nomic recession are not unusual. But the econcapital markets—in large part via rapidly expand- omy has been expanding now for two years, and ing bond and equity mutual funds. the extended bout of stringency stands in some These portfolio adjustments of households and contrast to this pattern of economic growth. businesses have been motivated largely, as I Besides suggesting the extent of needed balance have suggested, by efforts to restore balance sheet restructuring by banks, this prolonged pesheets that had gotten out of line in the 1980s. riod of adjustment may also reflect the increased But the timing and pace of these restructuring costs of financial intermediation resulting from activities have been related importantly to the recent banking legislation. very favorable trends we have seen in the equity With demand for their loans weak, banks have and bond markets, trends that seem to have bid for deposits unenthusiastically. Neverthe- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

612 Federal Reserve Bulletin • June 1993 less, deposit inflows have exceeded banks' fund- First, during this period most banks already ing needs, and, partly to accommodate their de- met capital standards and thus were under no posit customers, banks have purchased securities regulatory pressure to realign their portfolio. In in volume. This phenomenon is one in which this addition, precisely the better capitalized banks in subcommittee has expressed an interest. Histori- recent years have been acquiring the bulk of cally speaking, the ratio of security holdings to liquid Treasury and agency securities. This patloans at banks is not at a particularly high level. tern, in turn, seems to reflect that it has been the Indeed, it was much higher in the period from the banks with high risk-based capital ratios that also end of World War II to the early 1960s. Nor is the have had relatively high leverage ratios and have increase in the ratio over the past few years been most able to grow and accommodate desurprising because it typically rises in periods of posit inflows. In an environment of depressed economic weakness. Nevertheless, some observ- loan demand, deposit inflows were deployed to ers have blamed the recent shift from lending to available assets, largely securities. A similar acquisitions of government securities on the Basle portfolio pattern of weak loan growth and strong risk-based capital standards. security acquisitions has developed at credit As you know, banks must maintain minimum unions—institutions not subject to the Basle levels of two separate measures of capital: the Accord. As loan demand revives, the high levels ratio of equity capital to assets, a standard and of securities holdings at banks and other depostraditional measure of leverage, and more re- itory institutions likely will be drawn down as cently, the ratios of two measures of capital to they were in numerous other cyclical upturns. risk-adjusted assets. The latter requirements are Another important factor has been the develthe capital standards associated with the Basle opment of the market for mortgage-backed secu- Accord. They formally recognize what has long rities, especially collateralized mortgage obligabeen known and understood—if not always acted tions (CMOs). The CMO market makes available upon—by bankers as well as their supervisors, mortgage-backed instruments that are more atnamely that the amount of capital backing banks' tractive to banks than standard mortgage passassets ought to be related to the riskiness of those through securities because the effective maturiassets. ties of some CMO tranches better match those of At first glance, the Basle Accord would appear banks' deposit liabilities and thus serve to limit to have had an important causative role in recent interest rate risk. Indeed, most of the growth in changes in banks' portfolio composition away mortgage-related securities since 1990 has been from loans and toward securities. This interpre- in the form of CMOs, and acquisitions of governtation would seem to follow from the observation ment-backed or guaranteed mortgage-related sethat, in the period leading up to the full imple- curities have accounted for 45 percent of all mentation of these standards in December 1992, purchases of U.S. government and agency secubanks acquired substantial amounts of U.S. rities over this period. In part, acquisitions of Treasury and agency securities, which have low mortgage securities can be viewed as substituting or zero weights in computing risk-based capital for state and local bonds, which have run off ratios and registered corresponding declines in since late 1986, when the tax-advantaged status the portfolio shares of full-risk-weight loans. of most of these instruments to banks was ended. Because the purpose of the risk-based capital Of course, bank purchases of mortgage-backed requirements was to better align risks with capi- securities provide credit to mortgage markets tal, it would be surprising if their introduction did just as do acquisitions of mortgages themselves. not have some impact on banks' portfolio com- Even though the Basle Accord does not seem position. For the preponderance of banks, how- to explain the recent trend toward securities ever, considerable evidence suggests that the acquisition as currently structured, it does not recent trend toward increased securities holdings adequately address the issue of interest rate risk much more reflects lackluster loan demand as that is potentially raised in banks' holdings of described above than efforts to boost risk-based securities. Our examiners do, of course, take capital ratios., interest rate risk into account when evaluating Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to the Congress 613 banks. To provide further guidance in this area to mained very weak. At smaller banks as a group, banks and examiners and to respond to require- however, loan runoffs have ceased, and some ments of the Federal Deposit Insurance Corpo- growth has developed. ration Improvement Act of 1991 (FDICIA), the The administration's initiatives on credit Board has developed a proposal for measuring availability recently announced by the Federal interest rate risk in the context of the Basle Reserve and the other banking agencies should Accord and earlier this week approved its publi- provide some help in stimulating loan growth, cation for public comment. particularly for smaller borrowers. The already The steps that banks have taken in recent announced policy that would create for stronger years to rebuild their balance sheets have been banks a basket of loans to small and mediumconsiderable and may well augur an increase in sized businesses and farms for which documenthe availability of bank credit. Banks are very tation would not be reviewed by the examiner liquid, and lending rates relative to funding costs should help quite a lot. I also anticipate policy appear quite favorable, although banks must now proposals that would reduce the burden of real cover expenses associated with recent legislation estate appraisal requirements for most credit to that were not present earlier. Reflecting wider smaller borrowers to be announced shortly. lending margins and banks' efforts of recent These changes will be within the FDICIA years to control costs, bank profits last year framework and are designed not to affect adreached record levels. Capital markets, mean- versely the safety and soundness of banks and while, have improved markedly, and banks took thrift institutions but are expected to reduce full advantage of these conditions by issuing a costs and lags in the small- and medium-sized record volume of capital last year. As a result of business loan market. Other steps under conthe strong growth of capital, the share of loans in sideration that would lower the cost and burden the banking system at well-capitalized banks by of the examination process are—as announced the end of last year climbed past 85 percent, and in mid-March—under active review by the less than 1 percent was at less than adequately banking agencies. capitalized banks. Bank asset quality also has To sum up, the past few years have been a improved, as delinquency rates, while still high, difficult time for our economy and our financial have headed down. institutions. During this period, the conse- These developments suggest that banks have quences of the excesses of the past decade have completed much of the adjustment necessary to become apparent, along with the need to make attain comfortable balance sheets. Banks seem to fundamental adjustments. These adjustments be ready to lend when demand picks up. Indeed, have left their imprint on financial flows, particthere have been some tentative signs in recent ularly in the form of a slower pace of overall months of a pickup in bank lending and a slowing credit growth and, especially, restrained balance in their acquisitions of securities. As funding sheet expansion by depository institutions. Alconditions in capital markets have generally re- though this process has been trying, we are likely mained very favorable, business firms have con- to emerge from it with leaner and more efficient tinued to raise substantial volumes of funds banking institutions that are able to resume a there, and loan growth at larger banks has re- central role in financing a growing economy. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

614 Announcements PUBLICATION OF DOCUMENTS ON MARKET ing companies to lower from 100 percent to 50 per- RISK AND BANK CAPITAL BY THE BASLE cent the risk weight on loans to finance the con- COMMITTEE ON BANKING SUPERVISION struction of one- to four-family residences that have been presold. The Federal Reserve Board made available on The final rule amends the Board's Regulation H April 30, 1993, for public comment several docu- (Membership of State Banking Institutions in the ments on market risk and bank capital developed Federal Reserve System) and Regulation Y (Bank by the Basle Committee on Banking Supervision Holding Companies and Change in Bank Control). under the auspices of the Bank for International It is effective April 26, 1993, and implements sec- Settlements. The public comment period extends tion 618(a) of the Resolution Trust Corporation through year-end 1993. Refinancing, Restructuring, and Improvement Act These consultative papers, which deal with of 1991 (RTCRRIA). supervisory treatment of netting arrangements, market risk, and interest rate risk, provide an overview of the work to date of the Basle Committee. REVISIONS TO THE STAFF COMMENTARY TO While the matters addressed are in their prelimi- REGULATION Z nary stages and describe the current status of efforts that are of an ongoing nature, these efforts have The Federal Reserve Board published on April 1, potential implications for the evaluation of the cap- 1993, revisions to its staff commentary to Regulaital adequacy of internationally active banks. tion Z (Truth in Lending). The rules are effective The Board released an overview, prepared by the immediately, but compliance is optional until Octo- Basle Committee, that summarizes each paper. ber 1, 1993. Copies of the committee's papers can be obtained The revisions address the interplay between the from Publications Services, Board of Governors of Truth in Lending rules on demand features and the Federal Reserve System, Washington, DC other federal rules dealing with credit extended to 20551. Comments should be sent to William Wiles, executive officers of depository institutions and Secretary, at the same address. provide more flexibility in complying with disclo- Any concrete proposals for modifying the U.S. sure requirements. The revisions also offer credirisk-based capital guidelines that eventually grow tors alternative methods of disclosing security out of these preliminary consultative papers would interests in rescindable transactions. be issued for comment before they are adopted for U.S. banking organizations. REVISIONS TO THE LIST OF MARGINABLE OTC STOCKS AND TO THE LIST OF FOREIGN ISSUANCE OF FINAL RULE AMENDING MARGIN STOCKS RISK-BASED CAPITAL GUIDELINES FOR STATE MEMBER BANKS AND BANK HOLDING The Federal Reserve Board published on April 23, COMPANIES 1993, a revised List of Marginable OTC Stocks that are subject to its margin regulations. Also The Federal Reserve Board issued on April 20, published was the List of Foreign Margin Stocks 1993, a final rule amending the risk-based capital for foreign equity securities that are subject to guidelines for state member banks and bank hold- Regulation T (Credit by Brokers and Dealers). The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

615 lists are effective May 10, 1993, and supersede the ties for which transaction reports are required to be previous lists that were effective February 8, 1993. made pursuant to an effective transaction reporting The Foreign List specifies those foreign equity plan. Additional OTC securities may be designated securities that are eligible for margin treatment at as NMS securities in the interim between the broker-dealers. There are no additions, deletions, Board's quarterly publications and will be immedior changes to the Foreign List, which contains ately marginable. The next publication of the 302 foreign equity securities. Board's list is scheduled for August 1993. The changes that have been made to the OTC Besides NMS-designated securities, the Board List, which now contains 3,259 stocks, are as will continue to monitor the market activity of follows: other OTC stocks to determine which stocks meet the requirements for inclusion and continued inclu- • One hundred sixty-nine stocks have been sion on the OTC List. included for the first time, 139 under National Market System (NMS) designation. • Thirty-two stocks previously on the list have RELEASE OF QUARTERLY TABLE OF been removed for substantially failing to meet the FACTORS FOR SECTION 20 COMPANIES requirements for continued listing. • Thirty-eight stocks have been removed for rea- The Federal Reserve Board released on April 12, sons such as listing on a national securities 1993, its quarterly table of factors to adjust interest exchange or involvement in an acquisition. income to be used by section 20 companies that adopt the Board's alternative index revenue test to The OTC List is published by the Board for the measure compliance with the 10 percent limit on information of lenders and the general public. It bank-ineligible securities activities. The table of includes all over-the-counter securities designated factors is available from Publications Services, by the Board pursuant to its established criteria as Board of Governors of the Federal Reserve Syswell as all OTC stocks designated as NMS securi- tem, Washington, DC 20551. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

617 Legal Developments FINAL RULE—AMENDMENTS TO REGULATIONS Cortech, Inc.: Rights (expire 05-24-94) G, T, U AND X Crest Industries, Inc.: $.01 par common The Board of Governors is amending 12 C.F.R. Parts Everex Systems, Inc.: $.001 par common 207, 220, 221 and 224, its Regulations G, T, U and X First Federal Savings Bank (Puerto Rico): $1.00 par (Securities Credit Transactions; List of Marginable common OTC Stocks; List of Foreign Margin Stocks). The List First Seismic Corporation: $.01 par common of Marginable OTC Stocks (OTC List) is composed of stocks traded over-the-counter (OTC) in the United Green Isle Environmental Services, Inc.: $.18-3/4 par States that have been determined by the Board of common Governors of the Federal Reserve System to be subject to the margin requirements under certain Federal Re- Hunter Environmental Services Inc.: $.10 par comserve regulations. The List of Foreign Margin Stocks mon (Foreign List) is composed of foreign equity securities that have met the Board's eligibility criteria under Imagine Films Entertainment, Inc.: Warrants (expire Regulation T. The OTC List and the Foreign List are 07-30-93) published four times a year by the Board. This docu- Jefferson National Bank (New York): $1.00 par comment sets forth additions to or deletions from the previous mon Foreign List. Both Lists were last published on February 1, 1993, and effective on February 10, 1993. Main Street & Main Inc.: Warrants (expire 09-04-96) Effective May 10, 1993, accordingly, pursuant to the Millfeld Trading Co., Inc.: Class A; Warrants (expire authority of sections 7 and 23 of the Securities Ex- 09-04-96) change Act of 1934, as amended (15 U.S.C.78g and 78w), and in accordance with 12 C.F.R. 207.2(k) and NDE Environmental Corporation: $.001 par common 207.6 (Regulation G), 12 C.F.R. 220.2(u) and 220.17 NESB Corporation: $.01 par common (Regulation T), and 12 C.F.R. 221.2(j) and 221.7 (Reg- Old Stone Corporation: $1.00 par common; Series B, ulation U), there is set forth below a listing of deletions 12% preferred from and additions to the OTC List. Pacific International Services Corp.: No par common Deletions from the List of Marginable OTC Pentair Inc.: $1.50 par cumulative convertible pre- Stocks ferred Stocks Removed for Failing Continued Listing Ramtron Holdings Limited: American Depositary Re- Requirements ceipts Receptech Corporation: $.01 par common Alpha 1 Biomedicals, Inc.: Class B, warrants (expire 06-30-95) Sage Analytics International Inc.: $.001 par common American Steel and Wire Corporation: $.20 par com- Southern Educators Life Insurance Co.: $.50 par mon common ARIX Corporation: $.01 par common Tele-Communications Inc.: Series A; $1.00 par 12-%% cumulative compounding redeemable preferred B.M.J. Financial Corporation: Rights (expire 03-15-93) USBancorp Inc.: Series A; $2,125 par convertible preferred Calendar Capital, Inc.: $.01 par common Cherokee Inc.: $.01 par common Washington Mutual Savings Bank: $1.00 par preferred Circle Fine Art Corporation: $.10 par common stock Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

618 Federal Reserve Bulletin • June 1993 Stocks Removed for Listing on a National Security Financial Holding Co.: $.01 par common Securities Exchange or Being Involved in an South Carolina Federal Corp. $1.00 par common Acquisition United American Healthcare Corp.: No par common Advo, Inc.: $.01 par common Alden Press Company: $.01 par common Valley National Corporation: $2.50 par common Allmerica Property & Casualty Companies, Inc.: $1.00 par capital Applied Biosystems Inc.: No par common Additions to the List of Marginable OTC Armstrong Pharmaceuticals, Inc.: $.08 par common Stocks Clinical Homecare Ltd.: $.01 par common Airsensors, Inc.: $.001 par common; Warrants (expire Colonial Companies, Inc.: Class B, non-voting; $1.00 03-10-96) par common Alamo Group, Inc.: $.10 par common Alltrista Corporation: No par common DFSoutheastern, Inc.: $1.00 par common Amcor Limited: American Depositary Receipts Diversco, Inc.: $.01 par common American Federal Bank, FSB (South Carolina): $1.00 Dominion Bankshares Corporation: $5.00 par common par common Amtrol Inc.: $.01 par common Elm Financial Services, Inc.: $.01 par common Applied Signal Technology, Inc.: No par common Argosy Gaming Company: $.01 par common Fedfirst Bancshares, Inc.: $.01 par common Arkansas Best Corporation: Series A; $.01 par cumu- First Chattanooga Financial Corp.: $1.00 par common lative convertible exchangeable preferred First Federal Savings & Loan Association of Fort Aseco Corporation: $.01 par common Meyers: $.01 par common Autoimmune Inc.: $.01 par common First Federal Savings Bank (Utah): $1.00 par comon Avecor Cardiovascular Inc.: $.01 par common Flagler Bank Corporation: Class A; $.10 par common Avid Technology, Inc.: $.01 par common Fremont General Corporation: $1.00 par common Bancfirst Corporation (Oklahoma): $1.00 par common Genesis Health Ventures: $.02 par common Bancinsurance Corporation: No par common Glamis Gold Ltd.: No par common BHC Financial, Inc.: $.001 par common Biosurface Technology, Inc.: $.01 par common Harmonia Bancorp Inc.: $.01 par common BKC Semiconductor Incorporated: No par common Health Images, Inc.: $.01 par common Boca Research, Inc.: $.01 par common Heekin Can, Inc.: $.01 par common Brock Candy Company: Class A; $.01 par common Brookstone, Inc.: $.001 par common Imagine Films Entertainment, Inc.: $.01 par common Bruno's, Inc.: Convertible debentures (due Inforum, Inc.: $.01 par common 09-01-2009) Integra Financial Corporation: $5.00 par common Campo Electronics Appliances & Computers Inc.: KCS Energy, Inc.: $.01 par common $.10 par common Cannon Express, Inc. Class B, non-voting, $.01 par Lincoln Financial Corporation: No par common, common $10.00 stated value Cascade Savings Bank, FSB (Washington): $1.00 par common Mercantile Bancorporation, Inc.: $5.00 par common Casino America, Inc.: $.01 par common Montclair Bancorp, Inc.: $.01 par common Casino Data Systems: No par common Catalytica, Inc.: $.001 par common National Savings Bank of Albany: $1.00 par common CB Bancshares, Inc. (Hawaii): $1.00 par common New York Bancorp, Inc.: $.01 par common Cell Genesys, Inc.: $.001 par common Champion Industries, Inc.: $1.00 par common Piccadilly Cafeterias, Inc.: No par common Chesapeake Energy Corporation: $.01 par common Pioneer Savings Bank (Washington): $1.00 par com- Chico's Fax, Inc.: $.01 par common mon Cocensys, Inc.: $.001 par common Puget Sound Bancorp: $5.00 par common Commerce Bank (Virginia): $.01 par common Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 619 Community Bancorp, Inc. (New York): 7.25% Series IEC Electronics Corp.: $.01 par common B; cumulative convertible preferred Inco Homes Corporation: $.01 par common Community Health Computing Corporation: $.001 par Incomnet Inc.: No par common common Independence Federal Savings Bank (Washington, Computer Outsourcing Services, Inc.: $.01 par com- D.C.): $.01 par common mon Independent Entertainment Group, Inc.: $.0001 par Comverse Technology, Inc.: $.01 par common common Coral Gables Fedcorp, Inc.: $.01 par common Intel Corporation: Warrants (expire 03-07-98) Cree Research, Inc.: $.01 par common Intelligent Surgical Lasers, Inc.: No par common Cryolife, Inc.: $.01 par common Intervisual Books, Inc.: No par common Cyberonics, Inc.: $.01 par common Intuit Inc.: $.01 par common Davidson & Associates, Inc.: $10.00 par common Jackpot Enterprises, Inc.: Warrants (expire 01-31-96) DF&R Restaurants, Inc.: $.01 par common Jackson County Federal Bank, A Federal Savings Bank (Oregon): Series A; $5.00 non-cumulative con- Education Alternatives, Inc.: $.01 par common vertible preferred Energy Biosystems Corporation: $.01 par common Jefferson Savings Bancorp, Inc. (Missouri): $.01 par Envirotest Systems, Inc.: Class A; $.01 par common common Equicredit Corporation: $.01 par common JMAR Industries, Inc.: $.01 par common; Warrants Ethical Holdings Limited: American Depositary Re- (expire 02-17-98) ceipts Excel Technology, Inc.: Series 1; $.001 par redeemable convertible preferred; Warrants (expire Kenfil Inc.: $.01 par common 09-30-97) Kinder-Care Learning Centers, Inc.: $.01 par common; Warrants (expire 04-01-97) Fastcomm Communications Corporation: $.01 par common L.S.B. Bancshares, Inc. of South Carolina: $2.50 par Fed One Savings Bank, F.S.B. (West Virginia): $.10 common par common Landstar System, Inc.: $.01 par common Financial Institutions Insurance Group, Ltd.: $1.00 Leasing Solutions, Inc.: No par common par common Liberty Technologies, Inc.: $.01 par common First Family Bank, FSB (Florida): $1.00 par common Lomak Petroleum, Inc.: $.01 par common First Federal Savings Bank of Brunswick, Georgia: Lukens Medical Corporation: $.01 par common $1.00 par common First Shenango Bancorp, Inc. (Pennsylvania): $.10 par Magal Security Systems, Ltd.: Ordinary shares common Marcum Natural Gas Services, Inc.: $.01 par common First Southern Bancorp, Inc. (North Carolina): No par Marion Capital Holdings, Inc.: No par common common Mason-Dixon Bancshares, Inc.: $10.00 par common Fossil, Inc.: $.01 par common Mathsoft, Inc.: $.01 par common Framingham Savings Bank (Massachusetts): Warrants McGaw, Inc.: $.001 par common (expire 01-31-96) Medical Resources, Inc.: $.01 par common Funco, Inc.: $.01 par common Microchip Technology, Inc.: $.001 par common Molecular Dynamics, Inc.: $.01 par common General Nutrition Companies, Inc.: $.01 par common Molten Metal Technology, Inc.: $.01 par common Gilat Satellite Networks Ltd.: Ordinary shares Mothers Work, Inc.: $.01 par common (NIS .01) Global Industries, Ltd.: $.01 par common Global Spill Management, Inc.: $.001 par common Nathan's Famous, Inc.: $.01 par common Gupta Corporation: $.01 par common National Convenience Stores Incorporated: $.01 par Gymboree Corporation, The: $.001 par common common NFO Research, Inc.: $.01 par common Hahn Automotive Warehouse, Inc.: $.01 par common Norand Corporation: $.01 par common Hamilton Bancorp, Inc. (New York): $.01 par com- Northrim Bank (Alaska): $1.00 par common mon NSA International, Inc.: $.05 par common Hollywood Park, Inc.: Depositary shares Nubco, Inc.: No par common Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

620 Federal Reserve Bulletin • June 1993 Orchard Supply Hardware Stores Corporation: $.01 Suprema Specialties, Inc.: $.01 par common par common Orthologic Corporation: $.005 par common Tecnomatix Technologies, Ltd.: Ordinary shares (NIS .01 par value) Pacific Sunwear of California, Inc.: $.01 par common Tencor Instruments: No par common Parallan Computer, Inc.: No par common Tide West Oil Company: $.01 par common Patrick Petroleum Company: Series B; $1.00 par con- Tricord Systems, Inc.: $.01 par common vertible preferred Penn Central Bancorp, Inc. (Pennsylvania): $1.25 par U.S. Can Corporation: $.01 par common common Union Bankshares, Ltd. (Colorado): $.001 par com- Pennsylvania Gas and Water: Depositary preferred mon shares Universal Electronics, Inc.: $.01 par common Peoples Bancorp, Inc. (Ohio): $1.00 par common Perceptron, Inc.: $.01 par common Vical Incorporated: $.01 par common Petersburg Long Distance Inc.: No par common Virginia First Savings Bank, F.S.B.: $1.00 par com- Philip Environmental Inc.: No par common mon Physician Corporation of America: $.01 par common Physicians Health Services, Inc.: Class A, $.01 par Wall Data Incorporated: No par common common Washington Homes, Inc.: $.01 par common Pikeville National Corporation: $5.00 par common Watson Pharmaceuticals, Inc.: $.0033 par common PMR Corporation: $.01 par common WCT Communications, Inc.: No par common Powersoft Corporation: $.00167 par common Wordstar International Corporation: Warrants (expire Preferred Health Care Ltd.: $.01 par common 03-26-96) Proxima Corporation: $.001 par common Quantum Corporation: 6-Vs% convertible subordi- FINAL RULE—AMENDMENT TO REGULATIONS nated debentures due 2002 HAND Y Recovery Engineering, Inc.: $.01 par common The Board of Governors is amending 12 C.F.R. Parts Regent Bancshares Corp. (Pennsylvania): Series A, 208 and 225, its Regulations H and Y (Capital and $. 10 par convertible preferred Capital Adequacy Guidelines). The Board is amending Resound Corporation: $.01 par common the risk-based capital guidelines for bank holding Rocky Shoes & Boots, Inc.: No par common companies and state member banks to lower from Roosevelt Financial Group, Inc.: 6-l/2% non-cumula- 100 percent to 50 percent the risk weight assigned to tive convertible preferred certain loans to builders to finance the construction of Rouse Company, The: Series A, convertible preferred presold residential (one- to four-family) properties. stock This final rule implements section 618(a) of the Reso- RPM, Inc.: Liquid yield option notes due 2012 lution Trust Corporation Refinancing, Restructuring, and Improvement Act of 1991. S3 Incorporated: $.001 par common Effective April 26, 1993, 12 C.F.R. Parts 208 and Sage Alerting Systems, Inc.: $.01 par common 225 are amended as follows: Savoy Pictures Entertainment, Inc.: $.01 par common Shaman Pharmaceuticals, Inc.: $.01 par common Part 208—Membership of State Banking Shared Technologies, Inc.: $.001 par common Institutions in the Federal Reserve System Shoe Carnival, Inc.: $.01 par common Southern Energy Homes, Inc.: $.0001 par common 1. The authority citation for part 208 is revised to read Specialty Paperboard, Inc.: $.001 par common as follows: Standard Management Corporation: No par common Staples, Inc.: 5% convertible subordinated debentures Authority: Sections 9,11(a), 11(c), 19, 21, 25, and 25(a) Stephan Company, The: $.01 par common of the Federal Reserve Act, as amended (12 U.S.C. Sumitomo Bank of California, The: Depositary shares 321-338, 248(a), 248(c), 461, 481-486, 601, and 611, Sun Bancorp, Inc. (Pennsylvania): $2.50 par common respectively); sections 4 and 13(j) of the Federal De- Sunrise Bancorp, Inc. (New York): $.10 par common posit Insurance Act, as amended (12 U.S.C. 1814 and Superconductor Technologies, Inc.: $10.00 par com- 1823(j), respectively); sections 7(a) of the International mon Banking Act of 1978 (12 U.S.C. 3105); sections 907- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 621 910 of the International Lending Supervision Act of APPENDIX A TO PART 225—[AMENDED] 1983 (12 U.S.C. 3906-3909); sections 2, 12(b), 12(g), 12(i), 15B(c)(5), 17, 17A, and 23 of the Securities Exchange Act of 1934 (15 U.S.C.78b, 78/(b), 78/(g), III. Procedures for Computing Weighted-Risk 78/(i), 78o-4(c)(5), 78q, 78q-l, and 78w, respectively); Assets and Off-Balance-Sheet Items section 5155 of the Revised Statutes (12 U.S.C. 36) as amended by the McFadden Act of 1927; and sections 1101-1122 of the Financial Institutions Reform, Recover and Enforcement Act of 1989 (12 U.S.C. 3310 C. Risk Weights and 3331-3351); 12 U.S.C. 93a, 161, 1818, 3907, 3909, Sec. 618, Pub. L. 102-233, 105 Stat. 1761 (Resolution Trust Corporation Refinancing, Restructuring, and Improvement Act of 1991). ^ * * *38 2. Appendix A to part 208 is amended by revising footnote 35 to read as follows: FINAL RULE—AMENDMENT TO REGULATION O The Board of Governors is amending 12 C.F.R. Part APPENDIX A TO PART 208—[AMENDED] 215, its Regulation O (Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks; Loans to Holding Companies and Affiliates), to implement recent amendments to section 22(h) of the III. Procedures for Computing Weighted-Risk Federal Reserve Act, contained in the Housing and Assets and Off-Balance-Sheet Items Community Development Act of 1992. The final rule adopts three exceptions to the aggregate insider lending limit in Regulation O substantially as they were set C. Risk Weights forth in the Board's proposed rule. Additional exceptions suggested by commenters will be considered in % i(i s|e future rulemaking. 3 * * *35 Effective May 3, 1993, 12 C.F.R. Part 215 is amended as follows: Part 225—Bank Holding Companies and Change in Bank Control Part 215—Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks 1. The authority citation for part 225 is revised to read as follows: 1. The authority citation for part 215 is revised to read Authority: 12 U.S.C. 1817(j)(13), 1818, 1831i, as follows: 1843(c)(8), 1844(b), 3106, 3108, 3907, 3909, 3310, and 3311-3351. Authority. 12 U.S.C. 248(i), 375a, 375b(7), 1817 (k)(3) and 1972(2)(F)(vi), Pub. L. 102-550, 106 Stat. 3895 2. Appendix A to part 225 is amended by revising (1992). footnote 38 to read as follows: 35. Loans that qualify as loans secured by one- to four-family residential properties are listed in the instructions to the commercial 38. Loans that qualify as loans secured by one- to four-family bank call report. In addition, for risk-based capital purposes, loans residential properties are listed in the instructions to the FR Y-9C secured by one- to four-family residential properties include loans to Report. In addition, for risk-based capital purchases, loans secured by builders with substantial project equity for the construction of one- to one- to four-family residential properties include loans to builders with four-family residences that have been presold under firm contracts to substantial project equity for the construction of one- to four-family purchasers who have obtained firm commitments for permanent residences that have been presold under firm contracts to purchasers qualifying mortgage loans and have made substantial earnest money who have obtained firm commitments for permanent qualifying mortdeposits. gage loans and have made substantial earnest money deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

622 Federal Reserve Bulletin • June 1993 Subpart A—Loans by Member Banks to Their Part 265—Rules Regarding Delegation of Executive Officers, Directors, and Principal Authority Shareholders 1. The authority citation for part 265 is revised to read as follows: 2. Section 215.4 is amended by adding a new paragraph (d)(3) to read as follows: Authority: 12 U.S.C. 248(i) and (k). Section 215.4—General prohibitions. 2. Section 265.5 is amended by adding paragraph (c)(3) to read as follows: Section 265.5—Functions delegated to ^ * * * Secretary of the Board. (3) Exceptions. The general limit specified in paragraph (d)(1) of this section does not apply to the following: (c) ^ (i) Extensions of credit secured by a perfected (3) Application approval under section 5(d)(3) of the security interest in bonds, notes, certificates of FDI Act. To approve applications pursuant to secindebtedness, or Treasury bills of the United tion 5(d)(3) of the Federal Deposit Insurance Act States or in other such obligations fully guaran- (12 U.S.C. 1815(d)(3)), in those cases in which the teed as to principal and interest by the United appropriate Federal Reserve Bank concludes that, States; because of unusual considerations, or for other good (ii) Extensions of credit to or secured by unconcause, it should not take action. ditional takeout commitments or guarantees of any department, agency, bureau, board, commis- 3. In section 265.6, paragraph (c)(5) is removed. sion or establishment of the United States or any corporation wholly owned directly or indirectly by the United States; or ORDERS ISSUED UNDER BANK HOLDING (iii) Extensions of credit secured by a perfected COMPANY ACT security interest in a segregated deposit account in the lending bank. Orders Issued Under Section 3 of the Bank (iv) The exceptions in this paragraph (d)(3) apply Holding Company Act only to the amount of such extensions of credit that are secured in the manner described herein. First Fidelity Bancorporation Lawrenceville, New Jersey Banco Santander, S.A. FINAL RULE—AMENDMENT TO RULES Madrid, Spain REGARDING DELEGATION OF AUTHORITY Order Approving the Acquisition of a Bank The Board of Governors is amending 12 C.F.R. Part 265, its Rules Regarding Delegation of Authority, in First Fidelity Bancorporation, Lawrenceville, New order to delegate to the Secretary of the Board, and to Jersey ("First Fidelity"), a bank holding company repeal with respect to the General Counsel of the within the meaning of the Bank Holding Company Act Board acting with the concurrence of the Director of ("BHC Act"), has applied under section 3 of the BHC the Division of Banking Supervision and Regulation, Act (12 U.S.C. § 1842) to acquire Northeast Bancorp, the authority to approve certain transactions requiring Inc., New Haven, Connecticut ("Northeast"), and the approval of the Board pursuant to section 5(d)(3) of thereby indirectly acquire Union Trust Company, the Federal Deposit Insurance Act (FDI Act). This Stamford, Connecticut ("Union Trust"), a state nonamendment will align the Board's procedures for ap- member bank.1 Banco Santander, S.A., Madrid, Spain proving "Oakar" transactions with those procedures used to approve other types of applications involving a director interlock with a Federal Reserve Bank. 1. The proposal is structured as a merger of First Fidelity's wholly owned subsidiary, FFB Newco, Inc. ("Newco"), with and into Effective May 3, 1993, 12 C.F.R. Part 265 is Northeast pursuant to alternative plans of merger. The first plan, amended as follows: which would be implemented if the merger is approved by both classes Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 623 ("Santander"), which controls First Fidelity within world.5 In the United States, Santander operates a the meaning of the BHC Act,2 also has applied under branch in New York, New York, and an agency and an section 3 of the BHC Act to acquire Northeast and Edge corporation in Miami, Florida.6 Northeast, with Union Trust. total consolidated assets of approximately $2.7 billion, Notice of the applications, affording interested per- is the third largest commercial banking organization in sons an opportunity to submit comments, has been Connecticut, controlling 9.9 percent of commercial published (58 Federal Register 4171, 12,038 (1993)). bank deposits in the state. The time for filing comments has expired, and the Board has considered the applications and all com- Douglas Amendment Analysis ments received in light of the factors set forth in section 3(c) of the BHC Act. Section 3(d) of the BHC Act, the Douglas Amend- First Fidelity, with total consolidated assets of ap- ment, prohibits the Board from approving an applicaproximately $31.5 billion, is the largest commercial tion by a bank holding company to acquire, directly or banking organization in New Jersey, controlling indirectly, any voting shares of, or interest in, any 22.2 percent of commercial bank deposits in the state.3 bank located outside the state in which the operations First Fidelity operates six subsidiary banks in New of the bank holding company's bank subsidiaries are Jersey, Pennsylvania, and New York,4 and engages principally conducted ("home state"), unless the acthrough its subsidiaries in a broad range of banking quisition "is specifically authorized by the statute laws and permissible nonbanking activities. Santander, of the State in which such bank is located, by language with total consolidated assets of approximately to that effect and not merely by implication."7 For $60.3 billion, is the fifth largest banking organization in purposes of the Douglas Amendment, First Fidelity's Spain and the 95th largest banking organization in the home state is New Jersey.8 In order to approve these applications, the Board must determine that, under Connecticut law, a Connecticut bank and bank holding company may be acquired by an out-of-state bank holding company. of Northeast's common stock, provides that all shares of Northeast The statute laws of Connecticut expressly authorize would be converted into shares of First Fidelity common stock, and the acquisition of a bank located in Connecticut by an that the shares of Newco would be converted into shares of Northeast as the surviving corporation. The second plan of merger would be out-of-state domestic bank holding company, if the implemented if the transaction is approved by the holders of North- second state authorizes the acquisition of a bank in east's voting common stock but not by the holders of its nonvoting common stock. Under the second plan, Northeast's nonvoting com- that state by a Connecticut bank holding company on mon stock would remain outstanding, Northeast's voting common a reciprocal basis.9 The interstate banking laws of stock would be converted into shares of First Fidelity common stock, New Jersey expressly authorize the acquisition of a and the shares of Newco would be converted into shares of Northeast stock. Newco has no assets or operations, and was formed for the bank on a reciprocal basis by a Connecticut bank purpose of consummating this transaction. First Fidelity also seeks the Board's approval to acquire up to 24.9 percent of Northeast's voting common stock pursuant to the exercise of a conditional stock option granted by Northeast to First Fidelity. The option is exercisable if Northeast receives an acquisition proposal from a third party, and in certain other circumstances. 5. Asset and ranking data for Santander are as of December 31, 2. Santander currently holds approximately 16 percent of the 1991, and employ exchange rates then in effect. outstanding voting shares of First Fidelity, and would hold approxi- 6. Santander also controls Banco de Santander-Puerto Rico, S.A., mately 19 percent of First Fidelity's voting shares upon consumma- Hato Rey, Puerto Rico, and Santander National Bank, Bayamon, tion of this proposal. After consummation, Santander's ownership Puerto Rico, and owns a minority, noncontrolling interest in The interest in First Fidelity could increase to approximately 24 percent Royal Bank of Scotland Group pic, Edinburgh, Scotland, a bank upon exercise of all First Fidelity warrants held by Santander. holding company within the meaning of the BHC Act. See Banco de Moreover, Santander representatives serve on the board of directors Santander, S.A. de Credito, 78 Federal Reserve Bulletin 60 (1992). of First Fidelity, and Santander has proposed to provide certain 7. 12 U.S.C. § 1842(d). management assistance to First Fidelity. See Banco de Santander, 8. A bank holding company's home state is that state in which the S.A. de Credito, 78 Federal Reserve Bulletin 72 (1992). operations of the bank holding company's banking subsidiaries were 3. Asset data for First Fidelity and Northeast are as of December 31, principally conducted on July 1, 1966, or the date on which the 1992; state deposit and ranking data are as of September 30, 1992. company became a bank holding company, whichever is later. First Fidelity also is the sixth largest commercial banking organization 9. Under Connecticut's interstate banking statute, any out-of-state in Pennsylvania, controlling 6 percent of commercial bank deposits in bank holding company may, with the approval of the Connecticut the state, and the 45th largest commercial banking organization in banking commissioner, acquire ownership or control of all or part of New York, controlling less than 1 percent of commercial bank the voting stock of a Connecticut bank or bank holding company if the deposits in the state. laws of the state in which the operations of the acquiring bank holding 4. First Fidelity is in the process of merging all of its New Jersey company's bank subsidiaries are principally conducted expressly banking operations into First Fidelity Bank, N.A., New Jersey, authorize, under conditions no more restrictive than those imposed Newark, New Jersey, and all of its Pennsylvania banking operations under Connecticut law, the acquisition by a Connecticut bank holding into Fidelity Bank, N.A., Philadelphia, Pennsylvania. First Fidelity's company of a bank or bank holding company having its principal place sole New York bank subsidiary is First Fidelity Bank, N.A., New of business in that other state. Conn. Gen. Stat. Ann. § 36-553 (West York, Bronx, New York. Supp. 1992). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

624 Federal Reserve Bulletin • June 1993 holding company.10 The Banking Commissioner for Supervisory Considerations the State of New Jersey has determined that Connecticut has reciprocal legislation in effect for purposes of Under section 3 of the BHC Act, as amended by the New Jersey's interstate banking statute, and has ad- Foreign Bank Supervision Enhancement Act of vised First Fidelity that the New Jersey Department of 1991,13 the Board may not approve an application Banking has no objection to the proposal. In applying involving a foreign bank unless the bank is "subject to the Douglas Amendment to Santander, the Board has comprehensive supervision or regulation on a consolconsidered, in addition to the New Jersey statute, the idated basis by the appropriate authorities in the interstate banking laws of Rhode Island and New bank's home country."14 The Board recently deter- York,11 which also provide for interstate banking on a mined, in an application under the International Bankreciprocal basis, and which contain provisions compa- ing Act (12 U.S.C. § 3101 et seq.) ("IBA"), that anrable to Connecticut's interstate banking law.12 other Spanish credit institution, Banco de Sabadell, After careful review of the relevant statutes, and in S.A., Sabadell, Spain ("Banco de Sabadell"), was light of all the facts of record, the Board has concluded subject to comprehensive consolidated supervision by that the proposed acquisition of Northeast is specifi- its home country authorities.15 Santander has reprecally authorized by Connecticut's interstate banking sented to the Board that it is subject to the same statute, and that the Board's approval of this proposal regulatory scheme applicable to Banco de Sabadell, is therefore not prohibited by the Douglas Amend- and has furnished additional information regarding the ment. Approval of the proposed transaction is condi- authorities' ability to supervise and regulate the activtioned, however, upon the receipt by First Fidelity and ities of Santander on a worldwide, consolidated basis. Santander of all required state regulatory approvals. The Board has reviewed this information, as well as the information previously received as it may apply to Santander. Based on all the facts of record, which 10. Under New Jersey law, an out-of-state bank holding company include the information described above, the Board may acquire control of a bank located in New Jersey if the acquiring has concluded that Santander is subject to comprehenbank holding company is located in a reciprocal state (i.e., a state sive supervision and regulation on a consolidated basis which allows New Jersey bank holding companies to acquire banks or bank holding companies located in that state on terms and conditions by its home country supervisor. substantially the same as those applicable to such an acquisition by banks and bank holding companies located in that state), and more In addition, Santander has committed that, to the than 50 percent of the total aggregate deposits controlled by the extent not prohibited by applicable law, it will make acquiring bank holding company's bank subsidiaries are held by bank available to the Board such information on the operasubsidiaries located in reciprocal states. N.J. Stat. Ann. § 17:9A-371 (West Supp. 1992). tions of Santander and any of its affiliates that the 11. Santander is subject to the Douglas Amendment directly be- Board deems necessary to determine and enforce cause it is a bank holding company within the meaning of the BHC compliance with the BHC Act, the IBA, and other Act, and indirectly because it is a foreign bank subject to the International Banking Act (12 U.S.C. § 3101 et seq.) ("IBA"). applicable federal law. Santander also has committed 12. Under Rhode Island law, an out-of-state bank or bank holding to cooperate with the Board to obtain any waivers or company may acquire ownership or control of the voting stock of a exemptions that may be necessary in order to enable Rhode Island bank or bank holding company if the laws of the state in which the acquiring bank is located, or the laws of the state in which Santander to make any such information available to the operations of the acquiring bank holding company's bank subsid- the Board. In light of these commitments and other iaries are principally conducted, expressly authorize, under conditions no more restrictive than those imposed under Rhode Island law, facts of record,16 the Board has concluded that the acquisition by a Rhode Island bank or bank holding company of a bank located in that other state, or of a bank holding company the operations of whose bank subsidiaries are principally conducted in that other state. R.I. Gen. Laws § 19-30-2 (1989). Under New York law, an out-of-state bank holding company may 13. Pub. L. No. 102-242, § 201 et seq. 105 Stat. 2286 (1991). acquire control of a bank located in New York if the New York 14. 12 U.S.C. § 1842(c)(3)(B). As provided in Regulation Y, the Superintendent of Banking determines that the statute laws of the Board determines whether a foreign bank is subject to consolidated state in which the operations of the out-of-state bank holding com- home country supervision under the standards set forth in Regulation pany's banking subsidiaries are principally conducted specifically K. 12 C.F.R. 225.13(b)(4). Regulation K provides that a foreign bank authorize the acquisition of control of a bank in that state by a bank may be considered subject to consolidated supervision if the Board holding company the operations of whose banking subsidiaries are determines that the bank is supervised or regulated in such a manner principally conducted in New York, and that the conditions or that its home country supervisor receives sufficient information on the restrictions applicable to an interstate acquisition would apply with worldwide operations of the foreign bank, including the relationship of equal effect to an in-state acquisition. N.Y. Banking Law § 142-b the bank to its affiliates, to assess the foreign bank's overall financial (McKinney 1990). In connection with the processing of these applica- condition and compliance with law and regulation. 12 C.F.R. tions, the Federal Reserve Bank of New York has been advised by the 211.24(c)(1)(h). New York Banking Department that Connecticut's interstate banking 15. See Banco de Sabadell, S.A., 79 Federal Reserve Bulletin 366 law is non-discriminatory and reciprocal with New York's interstate (1993). banking law, and that New York law would not prevent a bank holding 16. In this regard, the Board notes that it previously has reviewed company, the operations of whose banking subsidiaries are principally relevant provisions of Spanish confidentiality, secrecy, and other conducted in Connecticut, from acquiring control of a bank having its laws. See Banco de Sabadell, S.A.,19 Federal Reserve Bulletin 366 principal office in New York. (1993). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 625 Santander has provided adequate assurances of access Based on the foregoing and other facts of record, the to any appropriate information the Board may request. Board has determined that the applications should be, and hereby are, approved. The Board's approval is Competitive, Banking, and Convenience and Needs specifically conditioned upon compliance with all of Considerations the commitments made by First Fidelity and Santander in connection with these applications and Santander and Northeast compete directly in the Met- with the conditions referred to in this Order. For ropolitan New York-New Jersey banking market.17 purposes of this action, the commitments and condi- Upon consummation of this proposal, Santander tions relied on in reaching this decision shall be would remain the fifth largest commercial banking or deemed to be conditions imposed in writing by the thrift organization in the market, controlling less than Board and, as such, may be enforced in proceedings 5.5 percent of the total deposits in depository institu- under applicable law. tions in the market.18 After considering the number of The transactions approved in this Order shall not be competitors remaining in this market, the relatively consummated before the thirtieth calendar day followsmall increase in concentration as measured by the ing the effective date of this Order, or later than three Herfindahl-Hirschman Index ("HHI"),19 and other months after the effective date of this Order, unless facts of record, the Board has concluded that consum- such period is extended for good cause by the Federal mation of this proposal would not have a significantly Reserve Bank of Philadelphia or the Federal Reserve adverse effect on competition in the Metropolitan New Bank of New York, acting pursuant to delegated York-New Jersey banking market or any other rele- authority. vant banking market. By order of the Board of Governors, effective Considerations relating to the financial and manage- April 2, 1993. rial resources and future prospects of First Fidelity, Santander, Northeast, and their respective subsidiar- Voting for this action: Chairman Greenspan and Governors ies, as well as convenience and needs considerations Mullins, Angell, Kelley, LaWare, Lindsey, and Phillips. and other supervisory factors the Board is required to consider under section 3 of the BHC Act, also are BARBARA R. LOWREY consistent with approval of these applications.20 Associate Secretary of the Board Intervest Bancshares Corporation 17. The Metropolitan New York-New Jersey banking market is New York, New York approximated by New York City; Nassau, Orange, Putnam, Rockland, Suffolk, Sullivan, and Westchester Counties in New York; Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union, and Warren Counties in Order Approving Formation of a Bank Holding New Jersey; and portions of Fairfield County in Connecticut. Under Company the revised Department of Justice Merger Guidelines, 49 Federal Register 26,823 (1984), this market is considered unconcentrated. 18. For purposes of this analysis, deposits held by bank subsidiaries Intervest Bancshares Corporation, New York, New of First Fidelity are considered to be controlled by Santander. The Board previously has indicated that thrift institutions have become, or York ("Intervest"), has applied under section 3(a)(1) have the potential to become, major competitors of commercial of the Bank Holding Company Act, 12 U.S.C. banks. See Midwest Financial Group, 15 Federal Reserve Bulletin 386 (1989); National City Corporation, 70 Federal Reserve Bulletin 743 § 1842(a)(1) ("BHC Act"), to become a bank holding (1984). Thus, for purposes of this analysis, deposits of thrift institu- company by acquiring at least 69.6 percent of the tions are included at 50 percent. voting shares of Countryside Bankers, Clearwater, 19. Upon consummation of this proposal, the HHI in the Metropolitan New York-New Jersey banking market would increase by Florida ("Bank"). 5 points to 560. Notice of the application, affording interested per- 20. The Board notes that Santander's capital is in excess of the sons an opportunity to submit comments, has been minimum levels that would be required by the Basle Accord, and is considered equivalent to the capital that would be required of a United published (58 Federal Register 11,056 (1993)). The States bank holding company. time for filing comments has expired, and the Board The Board also has considered the records of performance under has considered the application and all comments rethe Community Reinvestment Act (12 U.S.C. § 2901 et seq.) ("CRA") of the United States banks, branches, and agencies con- ceived in light of the factors set forth in section 3(c) of trolled by Santander. Although the Board has identified certain the BHC Act. weaknesses in the CRA record of one of Santander's bank subsidiaries, these deficiencies are being addressed by Santander with the Intervest is a non-operating company formed for the primary Federal regulator for this institution, the Office of the Comp- purpose of acquiring Bank. Bank is the 149th largest troller of the Currency, and, in light of all the facts of record, do not commercial banking organization in Florida, controlreflect so adversely upon the convenience and needs considerations as to warrant denial of these applications. ling deposits of approximately $23.2 million, repre- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

626 Federal Reserve Bulletin • June 1993 senting less than 1 percent of total deposits in com- In light of all the facts of record, including the CRA mercial banks in the state.1 measures to be initiated, the Board believes that Intervest and Bank do not compete directly in any considerations relating to the convenience and needs banking market. Accordingly, based on all the facts of of the community to be served are consistent with record in this case, consummation of this proposal approval. The Board expects Intervest to implement would not have a significantly adverse effect on com- corrective measures regarding Bank's CRA perforpetition or the concentration of banking resources in mance, and the Board's decision is specifically condiany relevant banking market. The financial and man- tioned upon compliance with the CRA commitments agerial resources2 and future prospects of Intervest and plans submitted by Intervest. and Bank, and other supervisory factors that the Based on the foregoing and other facts of record, the Board is required to consider under section 3 of the Board has determined that the application should be, BHC Act are also consistent with approval of this and hereby is, approved. The Board's approval of this proposal. In this regard, the Board notes that Intervest transaction is specifically conditioned upon compliwill provide substantial additional capital to Bank as a ance with all of commitments made by Intervest in result of this proposal. connection with this application, including commit- The Board has also considered factors relating to the ments and initiatives relating to Bank's CRA perforconvenience and needs of the communities to be mance. For purposes of this action, the commitments served. The Board notes that Bank will be under new and conditions relied upon by the Board in reaching its ownership as a result of this proposal and that Intervest decision are both commitments imposed in writing by will initiate a number of steps to improve substantially the Board in connection with its findings and decision, the performance of Bank under the Community Rein- and, as such, may be enforced in proceedings under vestment Act, 12 U.S.C. § 2901 et seq. ("CRA"). applicable law. These measures will address specific deficiencies iden- The transaction shall not be consummated before tified in previous examinations of Bank's CRA perfor- the thirtieth calendar day following the effective date mance record.3 In general, the Statement of the Federal of this Order, or later than three months after the Financial Supervisory Agencies Regarding the Commu- effective date of this Order, unless such period is nity Reinvestment Act indicates that commitments for extended for good cause by the Federal Reserve Bank future corrective actions offered in the applications of Atlanta, pursuant to delegated authority. process will not be sufficient to overcome a seriously By order of the Board of Governors, effective deficient CRA record.4 In this case, however, the April 26, 1993. inadequate CRA record does not reflect the actions of the proposed new owners, and they have committed to Voting for this action: Chairman Greenspan and Governors take steps to correct deficiencies in the CRA perfor- Angell, Kelley, La Ware, and Phillips. Absent and not voting: mance in a timely fashion. Intervest's progress will be Governors Mullins and Lindsey. monitored by the Federal Reserve Bank of Atlanta and reviewed by the Board in future applications to estab- JENNIFER J. JOHNSON lish a depository facility. Associate Secretary of the Board Orders Issued Under Sections 3 and 4 of the Bank Holding Company Act 1. State data are as of June 30, 1992. Mellon Bank Corporation 2. The Board has carefully reviewed comments from two individuals maintaining that Intervest's principals lack banking experience and Pittsburgh, Pennsylvania familiarity with Bank's community. Intervest has responded that it plans to retain existing management of Bank, which has a substantial knowledge of the local community. In addition, the record indicates Order Approving Acquisition of a Bank Holding that Intervest's principals will be actively involved in ascertaining Company, Formation of a Bank Holding Company, local credit needs. The Board expects that Bank will at all times be staffed with competent and experienced management, and notes that, and Application to Engage in Nonbanking Activities for the next two years, Intervest and Bank will be subject to the requirements contained in section 914 of the Financial Institutions Mellon Bank Corporation, Pittsburgh, Pennsylvania Reform, Recovery, and Enforcement Act of 1989, which provide that notice must be given to the appropriate federal banking agency prior ("Mellon"), a bank holding company within the meanto the addition or replacement of any senior executive officers of ing of the Bank Holding Company Act ("BHC Act"), Intervest or Bank. Based on all the facts of record, the Board concludes that these comments do not warrant denial of Intervest's has applied under section 3(a)(3) of the BHC Act application. (12 U.S.C. § 1842(a)(3)) to acquire Boston Group 3. These examinations were conducted by the Federal Reserve Holdings, Inc., New York, New York ("BGH"), and Bank of Atlanta as of May 1992 and March 1993. 4. See 54 Federal Register 13,742 (1989). thereby to acquire indirectly The Boston Company, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 627 Boston, Massachusetts ("TBC"), a subsidiary of Douglas Amendment BGH, and Boston Safe Deposit & Trust Company, Boston, Massachusetts ("BSD&T"), a subsidiary of Section 3(d) of the BHC Act, the Douglas Amend- TBC.' ment, prohibits the Board from approving an applica- Mellon also has applied under section 4(c)(8) of the tion by a bank holding company to acquire any bank BHC Act and section 225.23 of the Board's Regula- located outside of the bank holding company's home tion Y (12 C.F.R. 225.23) to acquire The Boston state, unless such acquisition is "specifically autho- Company Advisors, Inc. ("TBC Advisors"), a subsid- rized by the statute laws of the State in which such iary of BGH and TBC, and to engage through TBC bank is located, by language to that effect and not Advisors in providing administrative and certain other merely by implication."3 For purposes of the Douglas services to mutual funds. This is an activity the Board Amendment, Mellon's home state is Pennsylvania. has not previously considered under section 4(c)(8) of The Massachusetts Banking Code expressly authothe BHC Act. In addition, Mellon has applied under rizes the acquisition of a Massachusetts bank by an section 4(c)(8) to acquire the other nonbanking subsid- out-of-state bank holding company if the laws of the iaries of BGH listed in Appendix B to this Order and state in which the subsidiary banks of the out-of-state thereby engage in making and servicing loans; provid- bank holding company principally conduct business ing trust services; and providing investment advisory allow Massachusetts banking organizations to acquire services pursuant to sections 225.25(b)(1), (b)(3), and banks in that state.4 The statute laws of Pennsylvania (b)(4) of the Board's Regulation Y (12 C.F.R. expressly authorize the acquisition of a banking insti- 225.25(b)(1), (b)(3), and (b)(4)). tution or bank holding company located in Pennsylvania by a bank holding company located in another Mellon also has given notice pursuant to section state, if that other state authorizes the acquisition of a 4(c)(13) of the BHC Act and section 211.5(c) of the financial institution on a reciprocal basis by a Pennsyl- Board's Regulation K (12 C.F.R. 211.5(c)) of its intent vania bank holding company.5 Based on all the facts of to acquire indirect control of Boston Safe Deposit and record, the Board concludes that approval of this Trust Company (U.K.) Limited, London, England; proposal is not prohibited by the Douglas Amend- Premier Unit Trust Administration Limited, London, ment.6 England; and The Boston Company Advisors (Bermuda) Ltd., Hamilton, Bermuda. These companies engage in activities that are permissible under section Financial, Managerial, and Other Supervisory 211.5(d) of Regulation K (12 C.F.R. 211.5(d)). Factors Notice of the applications, affording interested persons an opportunity to submit comments, has been The Board also concludes that the financial and manpublished (57 Federal Register 62,346 (1992)). The agerial resources and future prospects of Mellon and time for filing comments has expired, and the Board BGH and their respective subsidiaries, and the other has considered the applications and all comments supervisory factors that the Board must consider received in light of the factors set forth in sections 3(c) under section 3 of the BHC Act, are consistent with and 4 of the BHC Act. approval. The competitive factors under section 3 are Mellon, with total consolidated assets of $31.5 bil- also consistent with approval. lion, operates subsidiary banks in Pennsylvania, Delaware, and Maryland.2 BGH has total consolidated Convenience and Needs Factors assets of $8.7 billion and engages in providing institutional trust and custody services, institutional invest- The Board has received comments from organizations ment management services, and private banking ser- supporting approval of these applications based on vices. Mellon's record of performance under the Community 1. BSD&T became a bank for purposes of the BHC Act upon 3. 12 U.S.C. § 1842(d). enactment of the Competitive Equality in Banking Act of 1987 4. Mass. Gen. Laws Ann. ch. 167A, § 2. The Massachusetts statute ("CEBA"), but its ownership by BGH and TBC was grandfathered also conditions entry on the requirement that the out-of-state bank under section 101(c) of CEBA. Upon consummation of this transac- holding company not hold more than 15 percent of the total deposits, tion, TBC and BGH will become subject to the provisions of the BHC exclusive of foreign deposits, held by all state and federally chartered Act, and each has applied under section 3(a)(1) of the BHC Act to banks in the commonwealth and Massachusetts branches of banks become a bank holding company. Mellon would purchase BGH from existing by authority of a foreign country. Upon consummation of this Shearson Lehman Brothers ("Shearson"), a subsidiary of American transaction, Mellon would hold approximately 7.4 percent of the Express. As part of this transaction, Shearson will also acquire stock banking deposits in Massachusetts. and warrants to acquire stock of Mellon. 5. Pa. Stat. Ann. tit. 7, § 116 (Purdon 1992). 2. Asset and state banking data are as of December 31, 1992, and 6. Approval of this proposal is conditioned upon Mellon's receiving June 30, 1992, respectively. all required state regulatory approvals. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

628 Federal Reserve Bulletin • June 1993 Reinvestment Act (12 U.S.C. § 2901 et seq.) investment companies in the United States.9 Over ("CRA"), and from an individual ("Protestant") crit- 95 percent of TBC Advisors's business represents the icizing the CRA performance of Mellon and accusing provision of administrative services to funds that are Mellon of discriminating against residents of low- advised by other unaffiliated companies. Mellon proincome areas of North Philadelphia in the provision of poses to continue to provide these services through banking services, including housing-related loans. TBC Advisors. The Board has carefully reviewed the CRA perfor- The administrative services provided to mutual mance records of Mellon and TBC and their subsidiary funds and closed-end funds by TBC Advisors include banks, as well as all comments received regarding computing the fund's net asset value and performance these applications, including Mellon's response to data, coordinating communications and activities bethose comments, and all of the other relevant facts of tween the investment advisor and the other service record in light of the CRA, the Board's regulations, providers, accounting and recordkeeping, disbursing and the Statement of the Federal Financial Supervi- payments for fund expenses, providing office space for sory Agencies Regarding the Community Reinvest- the funds, and preparing and filing tax and regulatory ment Act ("Agency CRA Statement").7 The Board reports for the funds. In connection with these adminnotes that all of Mellon's subsidiary banks have been istrative services, TBC Advisors often provides emexamined for CRA performance and have received ployees that become officers or directors of the funds. "outstanding" or "satisfactory" ratings during their TBC Advisors also provides investment advisory sermost recent CRA examinations. In particular, Mel- vices in combination with administrative services to a lon's lead subsidiary bank, Mellon Bank, N.A., Pitts- small group of funds.10 burgh, Pennsylvania ("Mellon Bank"), received a "satisfactory" rating for CRA performance from the I. Glass-Steagall Act Office of the Comptroller of the Currency ("OCC") in July 1991. The Board further notes that this CRA The administrative services that Mellon proposes to examination of Mellon Bank found no evidence of provide through TBC Advisors and its affiliates raise a practices intended to discourage applications for credit number of issues under the Glass-Steagall Act. Under and no evidence of the types of illegal discrimination the Glass-Steagall Act, a company that owns a member alleged by Protestant.8 On the basis of all of the facts bank may not control "through stock ownership or in of record, including information provided by the Protany other manner" a company that engages principally estant, the OCC, and the other commenters supporting in distributing, underwriting or issuing securities.11 Mellon's CRA performance, the Board concludes that In 1972, the Board issued an interpretive rule that the convenience and needs considerations, including explained the Board's view that the provisions of the the CRA performance records of all bank subsidiaries, Glass-Steagall Act govern the relationship between are consistent with approval of these applications. mutual funds and companies that own member banks because mutual funds engage continuously in issuing Nonbanking Activities Serving as Administrator to and redeeming securities.12 The Board found that the Mutual Funds Glass-Steagall Act prohibited affiliates of banks from sponsoring, organizing, or controlling mutual funds13 One of the nonbanking companies Mellon will indi- or distributing their shares. rectly acquire, TBC Advisors, engages in a variety of activities with mutual funds that have not been previously approved by the Board. TBC Advisors currently 9. All of these investment companies are registered under the provides a number of administrative and advisory Investment Company Act of 1940 (15 U.S.C. § 80a-l et seq.). 10. In addition, BSD&T often serves as custodian to a mutual fund services to 84 different open-end investment compa- and might serve as custodian in cases where TBC Advisors is the nies ("mutual funds") and 14 different closed-end mutual fund's administrator or advisor. A complete list of the proposed administrative services is attached as Appendix A. 11. 12 U.S.C. §§ 221a, 377. 12. 12 C.F.R. 225.125. 13. The Board found, on the other hand, that the prohibitions of the 7. 54 Federal Register 13,742 (1989). Glass-Steagall Act did not apply to closed-end funds as long as the 8. Protestant also criticizes Mellon's failure to provide a specific closed-end fund was not engaged frequently in the issuance, sale or loan to Protestant that was intended by Protestant to be part of a distribution of securities. On this basis, the Board has by regulation program to create housing and jobs in black and Hispanic low- and authorized bank holding companies to sponsor, organize, and manage moderate-income sections of Philadelphia. Protestant has raised many closed-end funds. 12 C.F.R. 225.25(b)(4)(ii). A closed-end fund that is of these claims in a lawsuit filed in federal court. The district court for controlled by a bank holding company must conform its activities and the Eastern District of Pennsylvania sustained Mellon's motion to investments to the requirements of section 4 of the BHC Act. Mellon dismiss Protestant's lawsuit, and Protestant has appealed the court's has committed that if it sponsors, organizes, or controls any closeddecision. The Board believes that the courts will afford an adequate end fund Mellon will limit any such fund's investments to less than remedy to Protestant if one is warranted. 5 percent of the voting shares of any issuer. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 629 The Board also found, however, that the Glass- Mellon does not propose to provide administrative Steagall Act does not prohibit all relationships be- services to mutual funds that are marketed and sold tween a bank holding company and a mutual fund. In primarily to customers of BSD&T or any of Mellon's particular, the Board determined that it was permissi- other subsidiary banks. ble under the BHC Act and the Glass-Steagall Act for The Board believes that Mellon's proposal to probank holding companies to provide investment advice vide the administrative services described in Appendix to mutual funds. In addition, the Board found that the A to mutual funds is permissible under the Glass- Glass-Steagall Act did not prohibit bank holding com- Steagall Act. A mutual fund administrator provides panies from providing certain other services to mutual services that are primarily ministerial or clerical in funds, such as acting as custodian, transfer agent, or nature, and does not have policy-making authority or registrar. The Board imposed a number of restrictions control over the mutual fund.16 The policy-making on the relationship between bank holding companies functions rest with the board of directors of the fund, and mutual funds in order to avoid conflicts of interest which is responsible for the selection and review of the and to address potential safety and soundness con- major contractors to the fund, including the investcerns.14 ment advisor, and under certain circumstances, the Thus, banks and affiliates of banks may currently administrator. The Investment Company Act of 1940 perform four of the six major services needed by a (the "1940 Act") requires that these contracts be mutual fund: they may serve as investment advisor, reviewed at least annually by the board of directors of transfer agent, custodian, and registrar. They may not the mutual fund, and that these contracts be terminaact as distributor to the fund. This application raises ble by the board of directors on no more than 60 days the question whether it is consistent with the Glass- written notice.17 In addition, the 1940 Act requires that Steagall Act for an affiliate of a member bank to act as at least 40 percent of the board of directors of a mutual administrator to a mutual fund. fund be comprised of disinterested individuals who are not affiliated with the investment advisor, with any Permissibility of Proposed Activities person that the SEC has determined to have a material business or professional relationship with the fund, with any employee or officer of the fund, with any Mellon has recognized that certain of the current registered broker or dealer, or with any other interactivities of TBC Advisors and its affiliates are prohibested or affiliated person.18 These unaffiliated board ited by the Glass-Steagall Act, and has taken steps to members must approve the fund's contracts with its discontinue these activities. For example, Mellon proinvestment advisor, underwriter, and often its adminposes to terminate the role of TBC Advisors as a istrator. Mellon has committed that, following its sponsor of new mutual funds. In addition, Mellon will acquisition, TBC Advisors will provide administrative not acquire the subsidiaries of TBC that engage in the services only to mutual funds whose boards of direcdistribution of mutual fund shares.15 At this time, tors consist of a majority of disinterested persons. 14. The Board's rule includes restrictions that prevent a bank holding company or any of its subsidiaries from: (1) Acting as investment advisor to an investment company that has sales activities with regard to any mutual fund's shares, and would not a name similar to the holding company or any of its subsidiary into enter any distribution agreement with any mutual fund unless banks, permitted to do so by a change in current law. TBC Advisors will not (2) Purchasing for its own account shares of any investment engage in the development of marketing plans except to give advice to company for which the holding company serves as investment the distributor regarding regulatory compliance. Mellon has also advisor, represented to the Board that TBC Advisors will not engage in (3) Purchasing in its sole discretion in a fiduciary capacity shares of advertising activities with respect to the funds and will not be involved an investment company advised by the holding company, in the preparation of a fund's sales literature, except to review such (4) Extending credit to an investment company advised by the sales literature for the sole purpose of ensuring compliance with all holding company, pertinent regulatory requirements. Employees of TBC Advisors (5) Accepting shares of an investment company advised by the would present information about the operations of a fund at meetings holding company as collateral for a loan used to purchase shares of or seminars for brokers of a fund, but sales activities, if any, at such the investment company. events would be conducted solely by the fund's distributer. In addition, the rule requires that, in cases in which a customer 16. The administrator is usually compensated according to a forpurchases or sells securities of the fund through the holding company mula that is dependent on the amount of assets in the fund, rather than or is advised by the holding company to purchase shares of the fund, on a negotiated fee basis. This formula for compensation would not the customer be informed in writing of the involvement of the holding appear to create the subtle hazards at which the Glass-Steagall Act company with the fund, and be informed that the shares of the fund are was aimed that are associated with having a salesman's stake in the not federally insured, and are not guaranteed by, or obligations of, a fund. The administrator is not involved in the promotion or sale of the bank. fund's shares, and is charged with completing largely ministerial 15. Mellon will not be involved in the distribution of the shares of duties that do not require or involve contact with the public in a any mutual fund. Mellon has represented to the Board that following promotional or sales role. the acquisition of BGH by Mellon, neither TBC Advisors nor any of 17. 15 U.S.C. § 80a-15. its affiliates would be obligated by any agreement to engage in any 18. 15 U.S.C. §§ 80a-2, 80a-10. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

630 Federal Reserve Bulletin • June 1993 Mellon also proposes, in situations in which Mellon Mellon also proposes in a small number of cases to subsidiaries serve as administrator to a mutual fund, to provide mutual funds with a combination of adminispermit one representative of the administrator to serve trative, investment advisory, and other services.22 The as a director of the fund. Mellon contends that an Board notes that the OCC has expressly permitted interlocking director would facilitate its provision of national banks that serve as investment advisor to administrative services to the fund.19 A director inter- mutual funds also to provide some administrative lock provides the fund with an individual who is services to those mutual funds, such as maintaining knowledgeable in the operation of the fund and can records on shareholder accounts, posting and reinvestdirectly advise the board of directors on administra- ing dividends in accordance with customer instruction. tions, preparing periodic statements of account, and Mellon proposes to have a director interlock only in transferring and receiving money by wire.23 In addisituations in which a company unaffiliated with Mellon tion, a number of national banks are already providing serves as the investment advisor to the mutual fund. these and other services as "sub-administrator" to This unaffiliated investment advisor would be an inde- mutual funds that are advised by the bank or an pendent and countervailing source of information to affiliate.24 the fund's board of directors. Moreover, Mellon has As explained above, the Board has already deterrepresented that, where TBC Advisors serves as the mined that bank holding companies may serve as the administrator to a mutual fund, this interlocking direc- investment advisor to mutual funds, and, therefore, tor would be deemed to be an interested person and that a bank holding company that serves as investment would be excluded from actions that must be taken by advisor to a mutual fund does not control the fund for the disinterested board members, such as approval of purposes of the Glass-Steagall Act. In the Board's the investment advisory contract and of the adminis- opinion, permitting a bank holding company that trator's contract. As discussed above, Mellon has also serves as the investment advisor to a mutual fund also committed that it will only serve as administrator to to provide the essentially ministerial or supporting mutual funds for which a majority of the board of functions as administrator to that fund would not directors are disinterested individuals. Thus, there are significantly increase the ability of the bank holding a number of counterbalancing parties and significant company to control the mutual fund. TBC Advisors limits on the participation of the administrator's rep- would not, by virtue of becoming administrator to a resentative on the fund's board of directors. Under fund that it or an affiliate advises, become involved in these circumstances, the Board believes that Mellon policy-making functions of these funds to a greater would not control a mutual fund if one employee of extent than when TBC Advisors provides solely in- TBC Advisors or an affiliate20 also serves as a director vestment advisory services. of a mutual fund to which TBC Advisors provides The Board believes that control of the fund would administrative services.21 continue to rest with the board of directors of the fund, which would be independent of TBC Advisors.25 In 19. Mellon also proposes that employees of TBC Advisors be permitted to serve as junior officers (i.e., in positions no higher than 5 percent of any fund to which it provides administrative services (but treasurer, secretary of the board, or vice president) or employees of not investment advisory services) would not significantly increase mutual funds administered by TBC Advisors. The duties of these Mellon's ability to exercise control over the fund for purposes of the lower level officers include preparing agendas and minutes of board Glass-Steagall Act. However, the Board conditions its determination meetings, drafting routine correspondence, signing regulatory filings, on the requirement that Mellon's ownership of the fund not be used in and supervising and reviewing accounting and recordkeeping for the any way in marketing or selling the shares of the fund. fund. These individuals have no policy-making authority, though they 22. This proposal does not involve providing both administrative may have authority to make routine operational decisions, such as and investment advisory services to so-called proprietary mutual authorizing the purchase of supplies and the employment of clerical funds that are sold primarily to customers of subsidiary banks of staff. This proposal would not change the ministerial nature of Mellon. Mellon's role as administrator provided that these employees are not 23. See, e.g., Letter dated January 14, 1985, from Legal Advisory responsible for, or involved in making recommendations regarding, Services Division, Office of the Comptroller of the Currency. See also policy-making functions. Letter dated January 13, 1993, from Director for Bank Supervision 20. This director could not serve as an officer, director, or employee and Analysis, Western District Office, Office of the Comptroller of the of Mellon, Mellon Bank, or any subsidiary bank or bank holding Currency (proposal by a national bank to invest in a partnership that company of Mellon. provides investment advisory and a wide range of administrative 21. In a small number of cases, TBC Advisors currently owns shares services to mutual funds). in certain mutual funds that it administers. Mellon has proposed to 24. These activities appear to involve primarily recordkeeping and retain its ownership interest in funds that it currently administers, but, accounting activities, participation in the preparation of documents within two years, to reduce that ownership interest to below 5 percent needed to comply with regulatory requirements, preparation of docof each fund's shares. Mellon proposes to discontinue the practice of uments in connection with shareholder meetings or board of directors providing seed capital to new mutual funds that it hopes to administer, meetings, and the provision of clerical support. although Mellon has requested that it be permitted to purchase up to 25. When administrative services are provided together with advis- 5 percent of any fund to which it provides only administrative ory services, Mellon represents that directors who are not considered services. The Board believes that Mellon's proposal to purchase up to interested persons of the investment advisor must also review and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 631 this regard, Mellon has committed that it will not have II. Bank Holding Company Act any director or officer interlocks with mutual funds to which Mellon provides both advisory and administra- The Board has previously determined by regulation tive services.26 Moreover, as noted above, Mellon that a bank holding company may act as investment would provide administrative services only to mutual advisor to a mutual fund.29 However, the Board has funds in which at least a majority of the board of not determined whether acting as the administrator for directors are comprised of disinterested individuals. a mutual fund meets the requirements of section In providing this combination of services, Mellon 4(c)(8) of the BHC Act. Under section 4(c)(8) of the and TBC Advisors would also be subject to the restric- BHC Act, a nonbanking activity is permissible if it is tions set forth in the Board's interpretive rule on closely related to banking and a proper incident investment advisory activities (12 C.F.R. 225.125).27 thereto. The Board's rule requires any bank holding company Under Board and court precedent, an activity is that acts as agent in the purchase or sale of shares of closely related to banking for purposes of section an investment company advised by a holding company 4(c)(8) if banks generally: affiliate, or that recommends the purchase or sale of (1) Conduct the proposed activity; such shares to any customer, to disclose to the cus- (2) Provide services that are operationally or functomer in writing the role of the bank holding company tionally so similar to the proposed activity as to and its affiliates with the investment company. In equip them particularly well to provide the proposed addition, the bank holding company must disclose in services; or writing that the shares of the investment company are (3) Provide services that are so integrally related to not federally insured, are not deposits, and are not the proposed service as to require their provision in obligations of, or guaranteed by, any bank. a specialized form.30 The interpretive rule also provides that an investment company advised by a bank holding company not The proposed administrative services consist of, have a name that is similar to, or a variation of, the among other things, maintaining the financial and name of any bank holding company or any of its corporate records of a mutual fund; computing the net subsidiary banks.28 In addition, the Board's rule pro- asset value, dividends, and performance data regardhibits a bank holding company from owning shares of ing the fund; providing information about the fund to any mutual fund that it advises, from purchasing in a the fund's board of directors, outside auditors, and fiduciary capacity in its sole discretion shares of these distributor; coordinating the activities of the fund's mutual funds, and from lending to any such fund or other service providers; preparing regulatory filings accepting shares of such funds as collateral for any such as tax returns and SEC registration statements; loan for the purpose of acquiring shares of the fund. and reviewing the activities of other service providers Mellon must conform the activities of TBC Advisors for regulatory compliance.31 and its affiliates with mutual funds to the Board's rule A number of national banks currently provide some within two years of the date of this Order. types of administrative services to mutual funds.32 On this basis, and subject to the commitments made Banks also provide similar recordkeeping and acby Mellon and compliance with the Board's interpre- counting functions in connection with products such tive rule, the Board believes that Mellon's proposal to as individual retirement accounts. National bank trust provide both investment advisory and administrative departments also perform administrative services for services to mutual funds is not prohibited by the collective investment funds, trust accounts, and em- Glass-Steagall Act. ployee benefit plans that are operationally and functionally similar to those that a mutual fund requires.33 approve the administrator's contract. The directors of an investment company may also terminate these contracts on 60 days notice. 26. Mellon has proposed in these situations to provide a limited 29. 12 C.F.R. 225.25(b)(4). number of employees who may serve as non-officer employees of the 30. See National Courier Association v. Board of Governors, 516 mutual fund. These employees will help in administration of the funds. F.2d 1229, 1237 (D.C. Cir. 1975). The Board may also consider any These employees will not have any policy-making or decision-making other factor than an applicant may advance to demonstrate a reasonauthority, and will be supervised by independent officers and the able or close connection or relationship to banking. 49 Federal board of directors. The Board believes that these limited employee Register 794, 806 (1984); Securities Industry Ass'n v. Board of interlocks, under the conditions described in this Order, would not Governors, 468 U.S. 207, 210-11 n.5 (1984). permit Mellon to control the fund. 31. See Appendix A for a complete list of administrative services. 27. These and certain other provisions of the Board's rule also apply 32. See Letter dated January 13, 1993, from Director for Bank to Mellon's proposed involvement with closed-end investment com- Supervision and Analysis, Western District Office, Office of the panies that it proposes to advise. Comptroller of the Currency. 28. 12 C.F.R. 225.125(f). 33. See 12 C.F.R. Part 9. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

632 Federal Reserve Bulletin • June 1993 The Board also has permitted bank holding compa- reaching this decision shall be deemed to be conditions nies to provide certain individual services provided by imposed in writing by the Board in connection with its a mutual fund administrator, including financial data findings and decision and may be enforced in proceedprocessing services (such as calculation of investment ings under applicable law. values and tax consulting services).34 This transaction shall not be consummated before For these reasons the Board finds that Mellon's the thirtieth calendar day following the effective date engaging in the proposed activities is closely related to of this Order, or later than three months after the banking, and, therefore, a permissible activity for effective date of this Order, unless such period is bank holding companies to provide under section extended for good cause by the Board or by the 4(c)(8) of the BHC Act.35 As discussed above, the Federal Reserve Bank of Cleveland, acting pursuant to provision of administrative services within certain delegated authority. parameters is not likely to result in the types of subtle By order of the Board of Governors, effective hazards at which the Glass-Steagall Act is aimed or April 21, 1993. any other adverse effects. For the same reasons, the Board finds that the public benefits of engaging in the Voting for this action: Chairman Greenspan and Governors proposed administrative activities outweigh the likely Kelley, Lindsey, and Phillips. Voting for this action subject adverse effects and, therefore, that the activities are a to conditions: Governors Angell and La Ware. Absent and not voting: Governor Mullins. proper incident to banking for purposes of section 4(c)(8) of the BHC Act. JENNIFER J. JOHNSON Based on all the facts of record, including all of the Associate Secretary of the Board commitments and representations made by Mellon in this case, and subject to all of the terms and conditions Appendix A set forth in this Order, the Board has determined that the applications should be, and hereby are, approved.36 The Board's determination is subject to all List of Administrative Services of the conditions set forth in the Board's Regulation Y, including those in sections 225.4(d) and 225.23(b), and (1) Maintaining and preserving the records of the fund, to the Board's authority to require modification or including financial and corporate records; termination of the activities of a bank holding com- (2) Computing net asset value, dividends, performance pany or any of its subsidiaries as the Board finds data and financial information regarding the fund; necessary to assure compliance with, and to prevent (3) Furnishing statistical and research data; evasion of, the provisions of the BHC Act and the (4) Preparing and filing with the SEC and state secu- Board's regulations and orders issued thereunder. The rities regulators registration statements, notices, re- Board's decision is specifically conditioned on compli- ports and other material required to be filed under ance with all of the commitments and representations applicable laws; made in these applications, including the commitments (5) Preparing reports and other informational materials and conditions discussed in this Order. The commit- regarding the fund including proxies and other sharements, representations, and conditions relied on in holder communications and reviewing prospectuses; (6) Providing legal and regulatory advice to the fund in connection with its other administrative functions; 34. 12 C.F.R. 225.25(b)(7) and (b)(21). 35. In determining whether an activity is a proper incident to (7) Providing office facilities and clerical support for banking, the Board must consider whether the activity "can reason- the fund; ably be expected to produce benefits to the public, such as greater (8) Developing and implementing procedures for monconvenience, increased competition, or gains in efficiency, that outweigh possible adverse effects, such as undue concentration of itoring compliance with regulatory requirements and resources, decreased or unfair competition, conflicts of interests, or compliance with the fund's investment objectives, unsound banking practices." policies, and restrictions as established by the fund's The record does not indicate that the proposal would result in adverse effects such as undue concentration of resources, decreased board; or unfair competition, conflicts of interest, or unsound banking (9) Providing routine fund accounting services and practices. In addition, the proposed activity should benefit from the liaison with outside auditors; operational support that Mellon is able to provide which will create greater convenience for TBC's mutual fund clients. (10) Preparing and filing tax returns; 36. The Board has also considered Mellon's proposal to acquire (11) Reviewing and arranging for payment of fund Boston Safe Deposit and Trust Company (U.K.) Limited, Premier Unit Trust Administration Limited, and The Boston Company Advi- expenses; sors (Bermuda) Ltd., the foreign subsidiaries of TBC. After consid- (12) Providing communication and coordination sereration of all the factors specified in Regulation K and based on all of vices with regard to the fund's investment advisor, the facts of record, the Board has determined that disapproval of these proposed investments is not warranted. transfer agent, custodian, distributor and other service Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 633 organizations that render recordkeeping or share- Concurring Statement of Governors Angell and holder communication services; LaWare (13) Reviewing and providing advice to the distributor, the fund and investment advisor regarding sales liter- We concur in the Board's decision that the adminisature and marketing plans to assure regulatory comtrative services that Applicant proposes to provide to pliance; mutual funds in this case are permissible under the (14) Providing information to the distributor's person- Glass-Steagall Act and the Bank Holding Company nel concerning fund performance and administration; Act. Banks have been providing investment advisory (15) Participation in seminars, meetings, and conferservices and at least some administrative services to ences designed to present information to brokers and mutual funds for some time. investment companies, but not in connection with the However, we believe that an administrator to a sale of shares of the funds to the public, concerning the mutual fund should not be permitted to have represenoperations of the funds, including administrative sertation on the board of directors of any mutual fund that vices provided by Mellon to the funds; it administers. We are concerned that this representa- (16) Assisting existing funds in the development of tion would permit the administrator to have direct additional portfolios; and input into, and participation in, the policy-making (17) Providing reports to the fund's board with regard decisions of the board of directors, and creates the to its activities. potential for exercise of control over the fund. We have similar concerns regarding Applicant's proposal Appendix B to own shares of mutual funds that it administers. Accordingly, while we agree with the majority that the proposal to provide administrative services to Nonbanking Companies to be Acquired mutual funds either alone or in combination with investment advisory services, is consistent with the Glass-Steagall Act, we would condition approval of (1) The Boston Finance Company, Boston, Massachuthis application on a requirement that the Applicant setts, which would engage in making and servicing not have any director interlocks with, or own any loans pursuant to section 225.25(b)(1) of the Board's shares of, any mutual fund for which Applicant is the Regulation Y; administrator. (2) Boston Safe Deposit and Trust Company of California, Los Angeles, California; and April 21, 1993 (3) Boston Safe Deposit and Trust Company of New York, New York, New York, which would provide trust services pursuant to section 225.25(b)(3) of the Orders Issued Under Federal Reserve Act Board's Regulation Y; (4) The Boston Company Institutional Investors, Inc., Texas State Bank Boston, Massachusetts; McAllen, Texas (5) The Boston Company of Southern California, Los Angeles, California; Order Approving the Establishment of a Branch (6) Boston Hambro Corp., New York, New York; (7) The Boston Company Financial Strategies Group, Inc., Boston, Massachusetts; Texas State Bank, McAllen, Texas ("Bank"), a state (8) The Boston Company Financial Strategies, Inc., member bank, has applied pursuant to section 9 of the Boston Massachusetts; Federal Reserve Act (12 U.S.C. § 321 et seq.) to (9) The Boston Company Income Securities Advisors, establish a branch office at 900 East Jackson Avenue, Inc., Boston, Massachusetts; and McAllen, Texas. (10) The Boston Company Energy Advisors, Inc., Notice of the application, affording interested per- Boston, Massachusetts; which would provide invest- sons an opportunity to submit comments, has been ment advisory services pursuant to section published. The time for filing comments has expired, 225.25(b)(4) of the Board's Regulation Y; and the Board has considered the application and all (11) The Boston Company Real Estate Counsel Inc., comments received in light of the factors set forth in Boston, Massachusetts, which would provide trust section 9 of the Federal Reserve Act. services and investment advisory services pursuant to Bank is a subsidiary of Texas Regional Bancshares, sections 225.25(b)(3) and (4) of the Board's Regula- Inc., McAllen, Texas ("Texas Regional"). Bank, with ion Y. approximately $375.1 million in deposits, has three Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

634 Federal Reserve Bulletin • June 1993 offices located throughout McAllen, Texas.1 This pro- acquire certain banking institutions.5 Protestant's alleposal would increase to five the number of offices that gations were reviewed extensively at that time. Bank would operate in Hidalgo County, Texas. In considering an application by a state member Record of Performance Under the CRA bank to establish an additional branch, the Board is required to consider the convenience and needs of the A. CRA Performance Examination community to be served and to take into account the institution's record of performance under the Commu- The Agency CRA Statement provides that a CRA nity Reinvestment Act ("CRA").2 The CRA requires examination is an important, and often controlling, the federal financial supervisory agencies to encourage factor in the consideration of an institution's CRA financial institutions to help meet the credit needs of record and that these reports will be given great weight the local communities in which they operate consistent in the application process.6 Bank received an overall with the safe and sound operation of such institutions. "satisfactory" rating in the examination of its CRA To accomplish this end, the CRA requires the appro- performance conducted by the Federal Reserve Bank priate federal supervisory authority to "assess the of Dallas ("Reserve Bank") as of July 22, 1991 (the institution's record of meeting the credit needs of its "1991 Examination"). In addition, the Reserve Bank entire community, including low- and moderate- recently completed another examination of Bank's income neighborhoods, consistent with the safe and CRA performance and has preliminarily concluded sound operations of such institution," and to take that that Bank's record of performance remains "satisfacrecord into account in its evaluation of applications for tory" (the "1993 Examination"). deposit facilities. In connection with this application, the Board has B. Aspects of CRA Performance received comments in support of the proposal from an individual and the Lower Rio Grande Valley District Policies and Programs. The Board previously con- Office of the Small Business Administration ("SBA cluded in the Texas Regional Order that Bank has in District Office"). In particular, the SBA District Office place the types of programs designed to assist the bank noted Bank's expanded participation with the SBA to in meeting the credit needs of its entire community, increase aid to the small business community. The including low- and moderate-income neighborhoods. Board also has received comments from an individual For example, Bank has appointed a senior official as ("Protestant") alleging that the proposed branch its CRA officer. In addition, the CRA program in place would not be located in a low- and moderate-income at Bank includes a compliance committee that meets area and that Bank is not meeting the credit needs of every two months. The records of this committee the Hispanic community in McAllen, Texas.3 indicate that it actively monitors Bank's consumer The Board has carefully reviewed the CRA perfor- compliance and CRA program. mance record of Bank, as well as the comments Ascertainment and Marketing. The 1993 Examinareceived, and all the other relevant facts of record, in tion found that Bank is adequately assessing the needs light of the Statement of the Federal Financial Super- of its local community. Since the 1991 Examination, visory Agencies regarding the Community Reinvest- Bank has been involved with more than 180 commument Act ("Agency CRA Statement").4 The Board nity and civic organizations in order to ascertain the also notes that Protestant raised similar allegations needs of its community. Bank also uses radio, televirelating to Bank's record of performance under the sion, and newspaper advertisements, and its loan-to- CRA in connection with the Board's approval last year deposit ratio reflects a demand for its products. In of the applications by Texas Regional and Bank to addition, Bank has placed brochures printed in both Spanish and English in the lobbies of each of its offices as of year-end 1992. The brochure solicits comments 1. Deposit data are as of December 31, 1992. about credit needs, services and deposit needs. In the 2. See e.g., First American Bank-Ann Arbor, 78 Federal Reserve Bulletin 450 (1992); see also 12 U.S.C. §§ 321, 2902(3)(c), 2903(2); Texas Regional Order, the Board noted that Bank 12 C.F.R. 208.5. could improve the documentation of its ascertainment 3. Protestant also states that more Hispanics should be employed or and marketing efforts, and the 1993 Examination found serve in decision making positions at Bank and in the community in general. Although the Board fully supports programs designed to that Bank had increased its marketing efforts in 1992. promote equal opportunity in every aspect of a bank's personnel policies and practices in the employment, development, advancement, and treatment of employees, the Board believes that the alleged deficiencies in Bank's general personnel and employment practices are beyond the scope of the factors that the Board may properly 5. Texas Regional Bancshares, Inc., 78 Federal Reserve Bulletin consider under the CRA or the convenience and needs factor. 289 (1992) (the "Texas Regional Order"). 4. 54 Federal Register 13,742 (1989). 6. 54 Federal Register at 13,745. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 635 Community Development and Lending Activities. In tioned indicated that this area was not adequately the Texas Regional Order, the Board also found that served by financial institutions. Bank actively participates in projects that support community development activities. In this regard, the C. HMD A Data and Lending Practices chairman of Bank's board of directors serves as the president of McAllen Affordable Homes ("MAH"), a The Board has reviewed the 1992 data reported by corporation that provides funds for the development of Bank under the Home Mortgage Disclosure Act subdivisions for first time home buyers with low- to ("HMDA").8 These data indicate some disparities in moderate-incomes. Financing is provided at favorable lending to minorities, including Hispanics, and in interest rates and is funded by Community Develop- certain low- and moderate-income tracts in McAllen. ment Building Grants, City of McAllen funds, and The Board is concerned when the record of an loans from local banks including Bank. Moreover, institution indicates disparities in lending to minority Bank's executive vice president in charge of lending applicants and believes that all banks are obligated to serves as president of Ronco Enterprises, Inc., a ensure that their lending practices are based on criteria corporation that engages in real estate development of that ensure not only safe and sound lending, but also low-income, single family housing, provides counsel- ensure equal access to credit by creditworthy appliing to individuals on how to qualify for a mortgage, cants regardless of race. The Board recognizes, howand provides assistance in avoiding default. Bank also ever, that HMDA data alone provide only a limited has purchased loans from the Harlingen Community measure of any given institution's lending in the com- Development Corporation that were made to borrow- munities that the institution serves. The Board also ers in low- and moderate- income areas. In addition, recognizes that HMDA data have limitations that Bank expanded the terms of its unsecured lending make the data an inadequate basis, absent other inforprogram from 18 to 24 months because of demand for mation, for conclusively determining whether an instisuch loans. There is no minimum loan amount, and tution has engaged in illegal discrimination on the basis Bank has reduced certain qualifying ratios for the of race or ethnicity in making lending decisions. loans. Bank also has been involved with the Weslaco The Board notes that the 1993 Examination found Development Committee, which provides assistance no evidence of illegal discrimination or other illegal in increasing business development and employment credit practices at Bank. In this regard, denied appliopportunities. cations reviewed by examiners revealed borrowers With respect to small business lending, Bank con- who lacked sufficient income to qualify for the loan tinues to participate in government-guaranteed lending amount requested, had poor credit histories, or had programs, such as those of the Small Business Admin- high debt-to-income ratios. In addition, examiners istration ("SBA"). Since the 1991 Examination, Bank noted efforts by Bank to qualify marginal borrowers has become a certified SBA lender, and is the only for loans. Examiners also reviewed real estate records certified SBA lender in the community. Since July in connection with Bank's housing-related lending 1991, SBA loans have increased from $783,000 to activities in certain low- and moderate-income areas. approximately $5 million. This year, Bank also con- These records demonstrated that there had been no ducted a Small Business Development Workshop with houses listed for sale in these low- and moderatethe SBA and other community organizations that was income areas in the past year, and that large portions attended by a number of small business owners.7 of these low- and moderate-income census tracts do Location of Branch. Bank's proposed branch will be not contain housing that would be available for resale.9 located in the southern area of McAllen on a major thoroughfare that is near four low- and moderateincome census tracts and will offer a full range of banking services. This area is newly developed and 8. The HMDA requires banks to report certain information regarding loan applications, approvals, and denials to the various banking employs more than 3,000 residents, the majority of agencies and the public. This information includes data on the race, whom are minorities. Bank selected this location after gender, and income of individual loan applicants, as well as the its ascertainment efforts revealed a need for a branch, location of the property securing the potential loan, and a description of the application. and community contacts that the Reserve Bank ques- 9. The 1993 Examination found that Bank needs to improve its use of data relating to the geographic distribution of Bank's loans. Bank has recently completed an overall consolidation of its data processing operations required by the acquisitions approved in the 7. Bank has received two new loan requests as a result of the Texas Regional Order. In this regard, the Board expects Bank to workshop. Since the 1991 Examination, Bank also has committed continue its efforts to identify the geographic distribution of its $25,000 to the University of Texas-Pan American and $25,000 to the applications and denials, to analyze this data, and to implement Texas State Technical College to establish scholarship funds to be appropriate steps, if necessary, to assist in meeting the credit needs managed at the discretion of the schools. of its entire community. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

636 Federal Reserve Bulletin • June 1993 D. Conclusion Regarding Convenience and Voting for this action: Chairman Greenspan and Governors Needs Factor Angell, Kelley, LaWare, Lindsey, and Phillips. Absent and not voting: Vice Chairman Mullins. The Board has carefully considered the entire record, JENNIFER J. JOHNSON including the comments filed in this case, in reviewing Associate Secretary of the Board the convenience and needs factor under the CRA. Based on a review of the entire record of performance, including information provided by the Protestant and Orders Issued Under International Banking Act by Bank, the Board believes that the efforts of Bank to help meet the credit needs of all segments of the communities served by Bank, including low- and mod- Coutts & Co., AG erate-income neighborhoods, and all other conve- Zurich, Switzerland nience and needs considerations are consistent with approval. Order Approving Establishment of a Branch On the basis of all the facts of record, including the Board's determinations in the Texas Regional Order, the Board concludes that the convenience and needs Coutts & Co., AG, Zurich, Switzerland ("Bank"), a considerations, including the CRA performance foreign bank within the meaning of the International record of Bank, are consistent with approval of this Banking Act ("IBA"), has applied under section 7(d) application. of the IBA to establish a state-licensed branch in New York, New York. 12 U.S.C. § 3105(d). A foreign bank Other Factors must obtain the approval of the Board to establish a branch, agency, commercial lending company, or rep- The Board also has reviewed the other factors it is resentative office in the United States under the Forrequired to consider in applications for establishing eign Bank Supervision Enhancement Act of 1991 and operating branches under the Federal Reserve ("FBSEA"), which amended the IBA. Act.10 Based on all the facts of record, the Board Notice of the application, affording interested perbelieves that the financial condition of Bank, the sons an opportunity to submit comments, has been general character of its management, and the proposed published in a newspaper of general circulation in New exercise of corporate powers are consistent with ap- York, New York (New York Times, April 2,1992). The proval and the purposes of section 9 of the Federal time for filing comments has expired and no public Reserve Act. comments were received. Based on the foregoing and all of the facts of record, Bank is incorporated and licensed to act as a bank the Board has determined that this application should under Swiss law. Founded in 1930, Bank engages in be, and hereby is, approved. The Board's approval is private banking activities and also provides corporate specifically conditioned upon compliance by Bank lending, foreign exchange, money market, and securiwith all the commitments made in connection with this ties services. Bank, with assets of $2.8 billion as of application. For purposes of this action, the commit- December 31, 1992, is one of the 50 largest banking ments and conditions relied on by the Board in reach- and finance companies operating in Switzerland in ing this decision are both conditions imposed in writ- terms of assets. Bank is a wholly owned subsidiary of ing by the Board in connection with its findings and National Westminster Bank, PLC, London, England decision, and as such may be enforced in proceedings ("NatWest"). under applicable law. Bank operates two branches in Switzerland and This branch shall be in operation no later than one representative offices in Japan, Singapore, Uruguay, year after the effective date of this Order, unless such and New York. Bank also owns six subsidiaries. Four period is extended for good cause by the Board or the of these subsidiaries are incorporated in Switzerland Federal Reserve Bank of Dallas, acting pursuant to and engage in financial, fiduciary, or portfolio managedelegated authority. ment activities. One subsidiary is incorporated in the By order of the Board of Governors, effective Cayman Islands, and acts as the representative office April 19, 1993. of Bank in Hong Kong. An additional subsidiary is a bank chartered in the Bahamas to take deposits. The purpose of the proposed branch is to offer private banking services in the United States. The proposed branch will assume the existing private 10. See 12 U.S.C. § 322; 12 C.F.R. 208.5. banking business of Bank's affiliate, National West- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 637 minster Bank USA, New York, New York.1 Bank has Regulation K provides that a foreign bank will be received approvals related to the establishment of the considered to be subject to comprehensive supervision proposed branch from the relevant home country or regulation on a consolidated basis if the Board supervisors, the New York State Banking Depart- determines that the bank is supervised and regulated in ment, and the Federal Deposit Insurance Corporation. such a manner that its home country supervisors Bank does not engage in nonbanking activities in the receive sufficient information on the foreign bank's United States and will be a qualifying foreign banking worldwide operations, including the relationship of organization within the meaning of Regulation K after foreign bank to any affiliate, to assess the overall establishing the proposed branch. 12 C.F.R. financial condition of the foreign bank and its compli- 211.23(b). NatWest, Bank's ultimate parent, is a for- ance with law and regulation.2 12 C.F.R. 211.24(c)(1). eign bank within the meaning of the IBA and Regula- In making its determinations under this standard for tion K. 12 U.S.C. §3101(7); 12 C.F.R. 211.21(m). each of NatWest and Bank, the Board considered the NatWest is the second largest banking group in the following information. United Kingdom in terms of assets, which were $238.4 billion as of June 30, 1992. Supervision of NatWest by U.K. Authorities NatWest conducts a wide range of international operations. The U.S. operations of NatWest consist of The Bank of England is the home country supervisor two U.S. bank subsidiaries, an Edge corporation, of NatWest and has broad statutory powers to superthree branches, two agencies, and nonbanking subsid- vise and take enforcement action against an authorized iaries. Coutts & Co. Group, London, England institution, such as NatWest. The Bank of England ("Coutts Group"), is the holding company for the supervises NatWest and its affiliates through a series companies of the NatWest organization that provide of measures designed to ensure that NatWest complies private banking services. Coutts Group provides these on an ongoing basis with the conditions for obtaining services through Coutts & Co., London, England authorization and operates in a prudent fashion. The ("Coutts UK"), and through Coutts & Co. Interna- conditions for granting authorization require review tional Holding, AG, Zurich, Switzerland ("Coutts of, among other things, assets and financial resources International"). Coutts International is the immediate and requirements, and maintenance of adequate acparent of both Bank and Coutts & Co. Trust (Hold- counting records and internal controls. The Bank of ings) Ltd., Nassau, Bahamas ("Coutts Trust"), a England may revoke or condition an institution's holding company for the trust operations of Coutts authorization if it falls out of compliance with these Group. conditions. In order to approve an application by a foreign bank In conducting its supervision, the Bank of England to establish a branch in the United States, the IBA and relies primarily on the solicitation and analysis of Regulation K require the Board to determine that the regular reports prepared by independent accountants foreign bank applicant engages directly in the business and the authorized institution, discussions with an of banking outside the United States, and has fur- institution's management and accountants, and connished to the Board the information it needs to assess sultation with other supervisory authorities. The Bank adequately the application. The Board must also de- of England receives reports from so-called Reporting termine that each of the foreign bank applicant and any Accountants who have statutory duties with respect to foreign bank parent is subject to comprehensive super- the information they submit to the Bank of England. vision or regulation on a consolidated basis by its home country supervisors. 12 U.S.C. § 3105(d)(2); 12 C.F.R. 211.24(c)(1). The IBA and Regulation K 2. In assessing this standard, the Board considers, among other also permit the Board to consider additional standards. factors, the extent to which the home country supervisors: 12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R. 211.24(c)(2). (i) Ensure that the bank has adequate procedures for monitoring and controlling its activities worldwide; Bank engages directly in the business of banking (ii) Obtain information on the condition of the bank and its subsidoutside of the United States through its banking oper- iaries and offices through regular examination reports, audit reports, or otherwise; ations in Switzerland. Bank also has provided the (iii) Obtain information on the dealings with and relationship be- Board with the information necessary to assess the tween the bank and its affiliates, both foreign and domestic; application through submissions that address the rele- (iv) Receive from the bank financial reports that are consolidated on a worldwide basis, or comparable information that permits analysis vant issues. of the bank's financial condition on a worldwide consolidated basis; (v) Evaluate prudential standards, such as capital adequacy and risk asset exposure, on a worldwide basis. 1. In assuming these accounts, the proposed branch will neither These are indicia of comprehensive, consolidated supervision. No acquire nor accept domestic retail deposits that require deposit single factor is essential and other elements may inform the Board's insurance. 12 U.S.C. § 3104(c). determination. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

638 Federal Reserve Bulletin • June 1993 The Bank of England also consults with other regula- condition of the organization,5 as well as annual, tory authorities that directly oversee particular por- independently audited financial reports for each of its tions of an authorized institution's operations. principal subsidiaries, which include Bank, Coutts The Bank of England applies and enforces detailed UK, and Coutts Trust. provisions regarding the content of reports and the The Bank of England obtains information on the duties of persons reporting the information. Under the dealings and relationship between NatWest and its Banking Act 1987, penalties may be imposed on indi- subsidiaries through required reports of aggregate viduals who either fail to comply with an instruction of large exposures and other affiliate transactions. It also the Bank of England to disclose information or reports restricts lending to affiliates by requiring such loans to ordered under statutory standards, or who knowingly provide market terms and serve a clear commercial or recklessly provide the Bank of England with false or purpose. misleading information.3 The Bank of England evaluates prudential standards The Bank of England ensures that NatWest has for NatWest on a worldwide basis. The Bank of procedures for monitoring and controlling its world- England has implemented the risk-based capital stanwide activities through the requirement that NatWest dards of the Basle Accord, with variations that conmaintain systems for accounting, record-keeping, and form to applicable European Community directives. internal controls. An authorized institution, such as NatWest must submit capital adequacy figures on an NatWest, is required by the Bank of England to create aggregate and consolidated basis. The Bank of Enand maintain systems of accounting, records, and inter- gland also ensures that NatWest maintains sufficient nal controls that permit preparation of required reports, liquidity, and applies limitations on credit risks and provide accurate information to directors and manage- concentrations. NatWest conforms to these requirement, and permit an authorized institution to maintain ments through internal controls and policies that apply consolidated information for each subsidiary. The Bank throughout its organization. of England evaluates the adequacy of systems that NatWest maintains through a mandatory annual report Supervision of Bank by Swiss Authorities that is prepared by its Reporting Accountants. NatWest monitors its operating subsidiaries, includ- The Swiss Federal Banking Commission ("Banking ing Bank, by requiring annual, on-site audits of each Commission") is responsible for the supervision of subsidiary by its independent accountants. The inde- Swiss banks and investment trusts and, as such, is the pendent accountants prepare letters regarding these home country supervisor of Bank.6 The powers of the audits that highlight any deficiencies found in the audit Banking Commission include licensing banks, issuing of each company's accounts, including weaknesses in directives to address violations by or irregularities internal controls, and present the letters to NatWest's involving banks, requiring information from a bank or internal audit and accounting departments, and to Nat- its auditor regarding supervisory matters, and revok- West's Group Chief Financial Officer. The Bank of ing bank licenses.7 England is notified of persistent or serious deficiencies. The Banking Commission exercises indirect over- The Bank of England regularly obtains information sight over Swiss banks through independent auditors on the condition of NatWest, its overseas offices, and known as Recognized Auditors that act on behalf of subsidiaries through frequent discussions with NatWest and its accountants, including its Reporting Accountants, and through periodic financial and audit reports. The Bank of England meets regularly with NatWest and 5. The Bank of England requires an authorized institution, such as its accountants, including its Reporting Accountants, to NatWest, to submit unconsolidated reports monthly and quarterly, review the consolidated financial condition of NatWest, and consolidated reports bi-annually. NatWest must discuss any including review of the audited, consolidated accounts accounting differences in other jurisdictions that substantially affect the consolidated reports with the Bank of England. of NatWest and its subsidiaries and the auditing process 6. The Banking Commission is responsible for the direct oversight used to prepare such accounts.4 of Bank. The Bank of England, as the supervisor of NatWest and its NatWest and its accountants must also submit to the subsidiaries, consults with the Banking Commission regarding supervision of Bank. Bank of England periodic reports on the financial 7. The Banking Commission may license an entity as a bank if the entity: (1) Conducts clearly defined activities with separate bodies for management, direction, supervision, and control of significant ac- 3. The independent accountants are subject to additional review and tivities; disclosure requirements through their licensing authorities. (2) Holds minimum, fully-paid capital; 4. The Bank of England requires NatWest to consolidate any (3) Employs bank management and administration with good repumajority-owned or controlled subsidiary that engages in credit or tations that ensure proper bank operations; and financial activities. (4) Employs a majority of Swiss residents as managers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 639 the Commission under detailed statutory provisions.8 annually. The Banking Commission evaluates pruden- Each Swiss bank must appoint a Recognized Auditor, tial standards with respect to capital adequacy that and must notify the Banking Commission of an intent effectively follow the risk-based capital standards of to change its auditor. The Recognized Auditors may the Basle Accord. take action within a bank as deemed necessary or as The Swiss Banking Law and Implementing Ordiinstructed by the Banking Commission, and must nance prescribe the content of the mandatory annual inform the Commission of supervisory matters. report of Bank by its Recognized Auditor. Under these The Banking Commission ensures that Bank has laws, the Recognized Auditor must review and report adequate procedures for monitoring and controlling its on the financial condition of a bank, including suffiworldwide activities through statutory and regulatory ciency and valuation of assets and capital, as well as standards for operations that each Swiss bank must other topics. The report must express an opinion meet. Among these standards are requirements for regarding compliance with the conditions for licenadequate internal controls, oversight, administration, sure, accounting accuracy, risks, adjustments, undisand financial resources. The Banking Commission closed reserves, treatment of classified assets, fidureviews compliance with these limitations on opera- ciary operations, exposures to single borrowers, tions and with internal control requirements through insider lending, capital, liquidity, reserve allocation, an annual audit performed by the Recognized Auditor. foreign assets, internal controls and organization, and The Banking Commission may take supervisory ac- compliance with monetary controls. tions that include requiring divestiture of a subsidiary The Swiss Banking Law contains penalties to ensure in response to supervisory concerns. correct reporting to the Banking Commission. Recog- Bank has adopted internal control procedures that nized Auditors face penalties for gross violations of permit it, and NatWest, to monitor Bank's operations duties in auditing, for reporting misleading information and those of its subsidiaries. Bank also performs or omitting essential information from the audit report, annual internal audits of each of its branches that and for failing to request pertinent information or to review all business activities and operations, as well as report to the Banking Commission. compliance with internal policy and applicable laws. Based on all the facts of record, which include the Bank monitors and controls its subsidiaries through information described above, the Board concludes annual audits of its operating subsidiaries by its Rec- that each of Bank and NatWest is subject to compreognized Auditor. The results of these audits are com- hensive supervision and regulation on a consolidated municated to the management of both Bank and Nat- basis by its respective home country supervisor. West. The Banking Commission obtains information on Additional Standards the condition of Bank, its foreign offices, and subsidiaries by requiring submission of periodic, consolidated financial reports and through the mandatory In considering this application, the Board has also annual report by the Recognized Auditor. Generally, taken into account the additional standards set forth in Swiss banks must consolidate for accounting purposes section 7 of the IBA. 12 U.S.C. § 3105(d)(3)-(4). As all foreign offices on a line-by-line basis, and must noted above, Bank has received the consent of its include any majority-owned banking, finance, or real home country supervisor to establish the proposed estate subsidiary on a pro-rata or proportional ac- branch. In addition, subject to certain conditions, the counting basis. Bank of England and the Banking Commission may The Banking Law requires Bank to submit annual share information on Bank's operations with other and semi-annual balance sheets and income state- supervisors, including the Board. ments to the Banking Commission. The Banking Com- As noted, Bank must comply with the Swiss capital mission also receives information regarding capital standards that effectively follow the Basle Accord. adequacy, country risk exposure, and foreign ex- Bank's capital exceeds these minimum standards and change exposures from Bank annually. Information on is equivalent to capital that would be required of a risks (such as interest rate risk) and inter-company U.S. banking organization. Managerial and other fitransactions is received through large loan reports that nancial resources of Bank are also considered consismust be submitted both when such loans occur and tent with approval and Bank appears to have the experience and capacity to support this additional office. Bank has established controls and procedures 8. The Banking Commission must formally grant recognition to for its U.S. offices to ensure compliance with U.S. Recognized Auditors under statutory standards that are designed to law. Under the IBA, the proposed state-licensed ensure the independence and competence of the auditors and the accuracy of the auditing process. branch may not engage in any type of activity that is Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

640 Federal Reserve Bulletin • June 1993 not permissible for a federally-licensed branch without Voting for this action: Chairman Greenspan and Governors the Board's approval. Angell, Kelley, LaWare, Lindsey, and Phillips. Absent and not voting: Governor Mullins. Finally, Nat West and Bank each have committed to make available to the Board such information on the JENNIFER J. JOHNSON operations of Bank and any affiliate of Bank that the Associate Secretary of the Board Board deems necessary to determine and enforce compliance with the IB A, the Bank Holding Company Act of 1956, as amended, and other applicable Federal ACTIONS TAKEN UNDER THE FEDERAL DEPOSIT law, to the extent not prohibited by law or regulation. INSURANCE CORPORATION IMPROVEMENT ACT The Board has reviewed the restrictions on disclosure in relevant jurisdictions in which NatWest or Bank By the Board operate and has communicated with certain government authorities concerning access to information. Mid Am, Inc. The Board notes that NatWest, Bank, and certain of Bowling Green, Ohio their affiliates may not provide information without the consent of third parties. In this regard, each of Nat- Order Approving Merger of a Savings Association West and Bank also has committed to cooperate with With a Commercial Bank the Board to obtain any approvals or consents that may be needed to gain access to information that may Mid Am, Inc., Bowling Green, Ohio ("Mid Am"), has be requested by the Board. In light of these commitapplied for the Board's approval to permit its subsidments and other facts of record, and subject to the iary, American Community Bank, N.A., Lima, Ohio condition described below, the Board concludes that Bank has provided adequate assurances of access to ("Bank"), to merge with Colonial Federal Savings any necessary information the Board may request. Bank, Bellefontaine, Ohio ("Colonial"), pursuant to section 5(d)(3) of the Federal Deposit Insurance Act On the basis of all the facts of record, and subject to (12 U.S.C. § 1815(d)(3) ("FDI Act")), as amended by the commitments made by NatWest and Bank, as well the Federal Deposit Insurance Corporation Improveas the terms and conditions set forth in this Order, the ment Act of 1991 (Pub. L. No. 102-242, § 501, 105 Board has determined that Bank's application to es- Stat. 2236, 2388-2392 (1991)). Section 5(d)(3) of the tablish a branch should be, and hereby is, approved. If FDI Act requires the Board to follow the procedures any restrictions on access to information on the operand consider the factors set forth in the Bank Merger ations or activities of Bank and any of its affiliates Act (12 U.S.C. § 1828(c)). 12 U.S.C. § 1815(d)(3)(E).> subsequently interfere with the Board's ability to Notice of the application, affording interested perdetermine the safety and soundness of Bank's U.S. sons an opportunity to submit comments, has been operations or the compliance by Bank or its affiliates given in accordance with the Bank Merger Act and the with applicable Federal statutes, the Board may re- Board's Rules of Procedure (12 C.F.R. 262.3(b)). In quire termination of any of Bank's direct or indirect addition, reports on the competitive effects of the activities in the United States. Approval of this applimerger were requested from the United States Attorcation is also specifically conditioned on compliance ney General, the Office of the Comptroller of the by each of NatWest and Bank with the commitments Currency, the Federal Deposit Insurance Corporation, made in connection with this application, and with the conditions contained in this Order.9 The commitments and the Office of Thrift Supervision. The time for filing comments has expired, and the Board has considered and conditions referred to above are conditions imposed in writing by the Board in connection with its the application and all comments received in light of decision, and may be enforced in proceedings under the factors set forth in the Bank Merger Act and 12 U.S.C. § 1818 or 12 U.S.C. § 1847 against Nat- section 5(d)(3) of the FDI Act. West, or Bank, including its offices and its affiliates. Mid Am is the eleventh largest commercial banking organization in Ohio, controlling deposits of $1 billion, By order of the Board of Governors, effective representing approximately 1.2 percent of total depos- April 20, 1993. its in commercial banking organizations in the state. Colonial is the 84th largest thrift organization in Ohio, 9. The Board's authority to approve the establishment of the proposed branch parallels the continuing authority of the State of New York to license offices of a foreign bank. The Board's approval of this application does not supplant the authority of the State of New York, 1. These factors include considerations relating to competition, the and its agent, the New York State Banking Department, to license the financial and managerial resources and future prospects of the existing proposed branch of Bank in accordance with any terms or conditions and proposed institutions, and the convenience and needs of the that the New York State Banking Department may impose. communities to be served. 12 U.S.C. § 1828(c). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 641 controlling deposits of $71.9 million, representing less divestiture, Mid Am would remain the largest deposithan 1 percent of total deposits in thrift institutions in tory institution in the market, controlling deposits of the state. Upon consummation of the proposed trans- $143.8 million, representing approximately 36.1 peraction, Mid Am would remain the eleventh largest cent of market deposits. The HHI would increase by commercial banking organization in Ohio, controlling 532 points to 1925. deposits of $1.1 billion, representing approximately The record in this case indicates that the effects that 1.2 percent of total deposits in commercial banking consummation of this proposal would have on compeorganizations in the state. tition in the Logan County banking market are miti- Mid Am and Colonial compete directly in the Logan gated by certain characteristics of this market. Follow- County, Ohio, banking market.2 In that market, Mid ing the consummation of the proposed divestiture, Am is the largest of twelve commercial banking or nine commercial banking organizations, including thrift organizations (together, "depository institu- three of the five largest commercial banking organizations"), controlling deposits of $84.8 million, repre- tions in Ohio, and three thrift institutions would opersenting approximately 23.5 percent of total deposits in ate in the Logan County banking market. The Logan depository institutions in the market ("market depos- County banking market also has a number of features its").3 Colonial is the third largest depository institu- that make it attractive for entry, including population tion in the market, controlling deposits of $37.2 mil- growth, deposit growth, and the level of per capita lion, representing approximately 10.3 percent of income in the market.7 Additionally, Ohio's nationmarket deposits.4 Upon consummation of this pro- wide reciprocal interstate banking law and its intrastposal, Mid Am would control $159.2 million in depos- ate branching law permit a potentially large number of its, representing approximately 40 percent of market financial institutions to enter this market with relative deposits. The Herfindahl-Hirschman Index ("HHI") ease. In this regard, one commercial banking organifor this market would increase by 811 points to 2204.5 zation entered the market on a de novo basis in 1990 and subsequently opened a second de novo branch in In order to mitigate the adverse competitive effects the market. that would otherwise result from consummation of this proposal, Mid Am has committed to divest one branch In light of the number and size of competitors of Bank, with deposits of approximately $15.4 million, remaining in the Logan County banking market, the located in the Logan County banking market to an market's attractiveness to entry, the number of potenout-of-market banking organization.6 Following this tial entrants into the market, and other facts of record in this case, the Board concludes that consummation of this proposal would not have a significantly adverse effect on competition or the concentration of banking 2. The Logan County banking market consists of Logan County, resources in the Logan County banking market or any Ohio. 3. State deposit data are as of September 30, 1992. Market deposit other relevant banking market. data are as of June 30, 1992. The Board also concludes that the financial and 4. Market share data before consummation are based on calculations in which the deposits of thrift institutions are included at managerial resources and future prospects of Mid Am 50 percent. The Board previously has indicated that thrift institutions and Bank, and considerations relating to the convehave become, or have the potential to become, major competitors of nience and needs of the communities to be served, are commercial banks. See Midwest Financial Group, 75 Federal Reserve Bulletin 386 (1989); National City Corporation, 70 Federal Reserve also consistent with approval of this application. Bulletin 743 (1984). Because the deposits of Colonial would be Moreover, the record in this case shows that: transferred to a commercial bank under Mid Am's proposal, those deposits are included at 100 percent in the calculation of the pro forma (1) The transaction will not result in the transfer of market share. See First Banks, Inc., 76 Federal Reserve Bulletin 669, any federally insured depository institution's federal 670 n.9 (1990); Norwest Corporation, 78 Federal Reserve Bulletin 452 deposit insurance from one federal deposit insur- (1992). 5. Under the revised Department of Justice Merger Guidelines, 49 ance fund to the other; Federal Register 26,823 (June 29, 1984), a market in which the (2) Mid Am and Bank currently meet, and upon post-merger HHI is above 1800 is considered to be highly concenconsummation of the proposed transaction will contrated. The Justice Department has informed the Board that a bank merger or acquisition generally will not be challenged (in the absence tinue to meet, all applicable capital standards; and of other factors indicating anticompetitive effects) unless the postmerger HHI is at least 1800 and the merger increases the 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 limitedpurpose lenders and other non-depository financial entities. liabilities to be divested to an independent trustee who will sell them 6. Mid Am has committed to execute a binding sales agreement, promptly. acceptable to the Board, to effect this divestiture prior to the consum- 7. Logan County's population increase between 1987 and 1990 mation of the acquisition of Colonial. In the event that the divestiture (4.4 percent), deposit growth between 1988 and 1991 (21.6 percent), is not consummated within 180 days of the proposal, Mid Am has and per capita income ($15,346), all exceed the average for non-MSA signed a trust agreement that provides for the transfer of the assets and counties in Ohio. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

642 Federal Reserve Bulletin • June 1993 (3) Because Bank is in Ohio and is merging with a under applicable law. This approval is limited to the savings institution located in Ohio, the proposed proposal presented to the Board by Mid Am, and may transaction would comply with the Douglas Amend- not be construed as applying to any other transaction. ment if Colonial were a state bank that Mid Am was This transaction may not be consummated before applying to acquire directly. See 12 U.S.C. the thirtieth calendar day after the effective date of this § 1815(d)(3). Order, or later than three months after the effective date of this Order, unless such period is extended by Based on the foregoing and all of the facts of record, the Board or the Federal Reserve Bank of Cleveland, the Board has determined that this application should acting pursuant to delegated authority. In connection be, and hereby is, approved. This approval is subject to with this provision, advice of the fact of consumma- Bank obtaining the required approval of the appropriate tion should be given in writing to the Reserve Bank. Federal banking agency for the proposed merger under By order of the Board of Governors, effective the Bank Merger Act. The Board's approval of this April 19, 1993. application also is conditioned upon Mid Am's compliance with the commitments made in connection with Voting for this action: Chairman Greenspan and Governors this application, including the divestiture commitments Angell, Kelley, LaWare, Lindsey, and Phillips. Absent and discussed in this Order. For purposes of this action, the not voting: Governor Mullins. commitments and conditions relied on in reaching this decision are both conditions imposed in writing by the JENNIFER J. JOHNSON Board and, as such, may be enforced in proceedings Associate Secretary of the Board ACTIONS TAKEN UNDER THE FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT ACT OF 1991 By the Director of the Division of Banking Supervision and Regulation and the General Counsel of the Board Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Acquired Surviving Approval Bank Holding Company Thrift Bank(s) Date First Citizens BancShares, Inc. Caldwell Savings Bank, First-Citizens Bank & March 30, 1993 Raleigh, North Carolina Inc., SSB, Trust Company, Lenoir, North Carolina Raleigh, North Carolina Pickens County Bancshares, Secor Bank, F.S.B., West Alabama Bank March 31, 1993 Inc., Birmingham, Alabama and Trust, Carrollton, Alabama Carrollton, Alabama 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 643 Section 3 Effective Applicant(s) Bank(s) Date FirstBank Holding Company of FirstBank of Fort Collins, April 2, 1993 Colorado, Fort Collins, Colorado Lakewood, Colorado FirstBank Holding Company of Colorado Employee Stock Ownership Plan, Lakewood, Colorado First Security Corporation, Desert Southwest Community April 22, 1993 Salt Lake City, Utah Bancorp, Las Vegas, Nevada Section 4 Effective Applicant(s) Bank(s) Date Panhandle Bancshares, Inc. to engage de novo in providing April 9, 1993 Panhandle, Texas management consulting services to nonaffiliated depository institutions and tax planning and preparation services 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 AMBANC Corp., Farmers' State Bank of St. Louis April 7, 1993 Vincennes, Indiana Palestine, Palestine, Illinois BOK Financial Corporation, Sand Springs Bancshares, Kansas City April 2, 1993 Tulsa, Oklahoma Inc., Sand Springs, Oklahoma Brookside Bancshares, Inc., Tulsa, Oklahoma Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

644 Federal Reserve Bulletin • June 1993 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date Bourbonnais Bancorp, Inc., Presidential Holding Chicago April 8, 1993 Bourbonnais, Illinois Company, Bourbonnais, Illinois Cashton Bancshares, Inc., Bank of Cashton, Chicago March 30, 1993 Cashton, Wisconsin Cashton, Wisconsin CNB Bancshares, Inc., South Central Illinois St. Louis March 22, 1993 Evansville, Indiana Bancorp, Inc., Effingham, Illinois Community First Bankshares, F&M Bank Holding Minneapolis April 23, 1993 Inc., Company, Fargo, North Dakota Cooperstown, North Dakota Community First Bankshares, Lincoln Banking Minneapolis April 23, 1993 Inc., Company, Ltd., Fargo, North Dakota Steamboat Springs, Colorado Crested Butte State Bank Crested Butte State Bank, Kansas City March 26, 1993 Holding Company, Crested Butte, Crested Butte, Colorado Colorado Davis BanCorporation, Inc., First Davis Kansas City Davis, Oklahoma Bancorporation, Inc., April 16, 1993 Davis, Oklahoma Dimeco, Inc., The Dime Bank, Philadelphia April 1, 1993 Honesdale, Pennsylvania Honesdale, Pennsylvania Farmers State Bancshares of Farmers State Bank of Kansas City March 26, 1993 Andrew County, Inc., Rosendale, Savannah, Missouri Savannah, Missouri First Breckinridge Bancshares, Bank of Clarkson, St. Louis March 29, 1993 Inc., Clarkson, Kentucky Irvington, Kentucky First Linden Bancshares, Inc., First Bank of Linden, Atlanta March 26, 1993 Linden, Alabama Linden, Alabama First National of Nebraska, Inc., First National Bank of Kansas City April 2, 1993 Omaha, Nebraska Kansas, Overland Park, Kansas First Neighborhood Bancshares, Newman Bancshares, Chicago April 16, 1993 Inc., Inc., Toledo, Illinois Newman, Illinois FirstPerryton Bancorp, Inc., Texas Commerce Bank - Dallas April 20, 1993 Perryton, Texas Amarillo, Amarillo, Texas First State Bancshares, Inc., Security First Savings & Kansas City April 22, 1993 Scottsbluff, Nebraska Loan Association, Cheyenne, Wyoming FNBR Holding Corporation, First National Bank of the Kansas City March 31, 1993 Meeker, Colorado Rockies, Meeker, Colorado Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 645 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank Date Fourth Financial Corporation, Nichols Hills Kansas City April 2, 1993 Wichita, Kansas Bancorporation, Inc., Oklahoma City, Oklahoma Illinois State Bancorp, Inc., Presidential Holding Chicago April 8, 1993 Wheaton, Illinois Company, Bourbonnais, Illinois International Brotherhood of Brotherhood Bancshares, Kansas City April 16, 1993 Boilermakers, Iron Ship Inc., Builders, Blacksmiths, Forgers Kansas City, Kansas & Helpers, Kansas City, Kansas LeRoy C. Darby, Inc., Keystone Bancshares, Chicago April 16, 1993 Monona, Iowa Inc., Elkader, Iowa Lincoln Trail Bancshares, Inc., Palmer State Bank, Chicago March 26, 1993 Taylorville, Illinois Taylorville, Illinois Midlothian State Bank Employee Midlothian State Bank, Chicago April 14, 1993 Stock Ownership Trust, Midlothian, Illinois Midlothian, Illinois Oliver Bancorporation, Inc., Security State Bank of Minneapolis March 26, 1993 Center, North Dakota New Salem, New Salem, North Dakota Section 4 Nonbanking Reserve Effective Applicant(s) Activity/Company Bank Date The Bank of Tokyo, Ltd., BOT Financial San Francisco April 22, 1993 Tokyo,Japan Corporation, Boston, Massachusetts Central Bancshares, Inc., C.R. Druse Insurance, Kansas City March 31, 1993 Cambridge, Nebraska Cambridge, Nebraska The Merchants Holding Mortgage Options of Minneapolis April 15, 1993 Company, La Crosse, Inc., Winona, Minnesota La Crosse, Wisconsin Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

646 Federal Reserve Bulletin • June 1993 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 Bank of Woodward, Cimarron Bank, Kansas City April 9, 1993 Woodward, Oklahoma Waukomis, Oklahoma Commonwealth Bank, Valley Community Bank, Philadelphia April 20, 1993 Williamsport, Pennsylvania Kingston, Pennsylvania PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits porary restraining order. On March 30, 1993, the against the Federal Reserve Banks in which the Board court granted the Board's motion to dismiss as to it, of Governors is not named a party. and also dismissed certain claims against the Reserve Bank. Amann v. Prudential Home Mortgage Co., et al., No. Zemel v. Board of Governors, No. 92-1056 (D. District 93-10320 WD (D. Massachusetts, filed February 12, of Columbia, filed May 4, 1992). Age Discrimination 1993). Action for fraud and breach of contract in Employment Act case. The parties' crossarising out of a home mortgage. motions for summary judgment are pending. Adams v. Greenspan, No. 93-0167 (D. D.C., filed State of Idaho, Department of Finance v. Board of January 27, 1993). Action by former employee under Governors, No. 92-70107 (9th Cir., filed Februthe Civil Rights Act of 1964 and the Rehabilitation ary 24, 1992). Petition for review of Board order Act of 1973 concerning termination of employment. returning without action a bank holding company Sisti v. Board of Governors, No. 93-0033 (D.D.C., application to relocate its subsidiary bank from filed January 6, 1993). Challenge to Board staff Washington to Idaho. The Board's brief was filed on interpretation with respect to margin accounts. On June 29, 1992. Oral argument was held October 6, April 9, 1993, the Board filed a motion to dismiss. 1992. U.S. Check v. Board of Governors, No. 92-2892 In re Subpoena Served on the Board of Governors, (D.D.C., filed December 30, 1992). Challenge to Nos. 91-5427, 91-5428 (D.C. Cir., filed December partial denial of request for information under the 27, 1991). Appeal of order of district court, dated Freedom of Information Act. December 3, 1991, requiring the Board and the CBC, Inc. v. Board of Governors, No. 92-9572 (10th Office of the Comptroller of the Currency to produce Cir., filed December 2, 1992). Petition for review of confidential examination material to a private liticivil money penalty assessment against a bank hold- gant. On June 26, 1992, the court of appeals affirmed ing company and three of its officers and directors the district court order in part, but held that the bank for failure to comply with reporting requirements. examination privilege was not waived by the agen- The Board's brief was filed on March 19, 1993. cies' provision of examination materials to the ex- DLG Financial Corporation v. Board of Governors, amined institution, and remanded for further consid- No. 392 Civ. 2086-G (N.D. Texas, filed October 9, eration of the privilege issue. On August 6,1992, the 1992). Action to enjoin the Board and the Federal district court ordered the matter held in abeyance Reserve Bank of Dallas from taking certain enforce- pending settlement of the underlying action. ment actions, and seeking money damages on a Board of Governors v. Kemal Shoaib, No. CV 91-5152 variety of tort and contract theories. On October 9, (C.D. California, filed September 24, 1991). Action 1992, the court denied plaintiffs' motion for a tem- to freeze assets of individual pending administrative Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 647 adjudication of civil money penalty assessment by Valley Bancshares, Inc., Santa Clara, California, and the Board. On October 15, 1991, the court issued a its subsidiary bank, the Silicon Valley Bank, Santa preliminary injunction restraining the transfer or Clara, California, pursuant to 12 U.S.C. 1818(b). disposition of the individual's assets. Board of Governors v. Ghaith R. Pharaon, No. 91- CIV-6250 (S.D. New York, filed September 17, 1991). Action to freeze assets of individual pending WRITTEN AGREEMENTS APPROVED BY FEDERAL administrative adjudication of civil money penalty RESERVE BANKS assessment by the Board. On September 17, 1991, the court issued an order temporarily restraining the Arrow Financial Corporation transfer or disposition of the individual's assets. Glens Falls, New York FINAL ENFORCEMENT ORDERS ISSUED BY THE The Federal Reserve Board announced on April 5, BOARD OF GOVERNORS 1993, the execution of an Amendment to the Written Agreement, dated July 22, 1992, involving the Federal First Pacific Bancorp, Inc. Reserve Bank of New York, Arrow Financial Corpo- Beverly Hills, California ration, Glens Falls, New York, and Arrow Vermont Corporation, Rutland, Vermont. The Federal Reserve Board announced on April 2, 1993, the issuance of Orders of Assessment of a Civil Money Penalty against First Pacific Bancorp, Inc., Citizens First Bancorp, Inc. Beverly Hills, California, and Jose M. Anotado, an Glen Rock, New Jersey institution-affiliated party of First Pacific Bancorp, Inc. The Federal Reserve Board announced on April 5, 1993, the execution of an Amendment to the Written Pacific Inland Bancorp Agreement, dated December 18, 1990, between the Anaheim, California Federal Reserve Bank of New York and Citizens First Bancorp, Inc., Glen Rock, New Jersey. The Federal Reserve Board announced on April 16, 1993, the issuance of a Cease and Desist Order against Perry County Bancorp, Inc. Pacific Inland Bancorp, Anaheim, California, and its Du Quoin, Illinois subsidiary bank, the Pacific Inland Bank, Anaheim, California. The Federal Reserve Board announced on April 26, Silicon Valley Bancshares, Inc. 1993, the execution of Written Agreements involving Santa Clara, California the Federal Reserve Bank of St. Louis and Perry County Bancorp, Inc., Du Quoin, Illinois, a bank The Federal Reserve Board announced on April 16, holding company, and its subsidiary bank, the 1993, the issuance of a Consent Order against Silicon Du Quoin State Bank, Du Quoin, Illinois. 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 Large 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 All Selected financial institutions—Selected assets funds—Large member banks and liabilities FEDERAL FINANCE POLICY INSTRUMENTS All Federal fiscal and financing operations A8 Federal Reserve Bank interest rates A28 U.S. budget receipts and outlays A9 Reserve requirements of depository institutions A29 Federal debt subject to statutory limitation A10 Federal Reserve open market transactions A29 Gross public debt of U.S. Treasury—Types and ownership A30 U.S. government securities FEDERAL RESERVE BANKS dealers—Transactions A31 U.S. government securities dealers—Positions All Condition and Federal Reserve note statements and financing A12 Maturity distribution of loan and security A32 Federal and federally sponsored credit holdings agencies—Debt outstanding MONETARY AND CREDIT AGGREGATES SECURITIES MARKETS AND CORPORATE FINANCE A13 Aggregate reserves of depository institutions and monetary base A33 New security issues—Tax-exempt state and local A14 Money stock, liquid assets, and debt measures governments and corporations A16 Bank debits and deposit turnover A34 Open-end investment companies—Net sales A17 Loans and securities—All commercial banks and assets A34 Corporate profits and their distribution A34 Nonfarm business expenditures on new COMMERCIAL BANKING INSTITUTIONS plant and equipment A35 Domestic finance companies—Assets and A18 Major nondeposit funds liabilities, and consumer, real estate, and business A19 Assets and liabilities, Wednesday figures credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • June 1993 Domestic Financial Statistics—Continued A54 Foreign official assets held at Federal Reserve Banks REAL ESTATE A55 Foreign branches of U.S. banks—Balance sheet data A36 Mortgage markets A57 Selected U.S. liabilities to foreign official A37 Mortgage debt outstanding institutions CONSUMER INSTALLMENT CREDIT REPORTED BY BANKS IN THE UNITED STATES A3 8 Total outstanding A3 8 Terms A57 Liabilities to and claims on foreigners A58 Liabilities to foreigners A60 Banks' own claims on foreigners FLOW OF FUNDS A61 Banks' own and domestic customers' claims on foreigners A39 Funds raised in U.S. credit markets A61 Banks' own claims on unaffiliated foreigners A41 Summary of financial transactions A62 Claims on foreign countries—Combined A42 Summary of credit market debt outstanding domestic offices and foreign branches A43 Summary of financial assets and liabilities 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 A49 Housing and construction A65 Foreign transactions in securities A50 Consumer and producer prices A66 Marketable U.S. Treasury bonds and A51 Gross domestic product and income notes—Foreign transactions A52 Personal income and saving INTEREST AND EXCHANGE RATES International Statistics A67 Discount rates of foreign central banks SUMMARY STATISTICS A67 Foreign short-term interest rates A68 Foreign exchange rates A53 U.S. international transactions—Summary A54 U.S. foreign trade A69 Guide to Statistical Releases and A54 U.S. reserve assets 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 Domestic NonfinancialS tatistics • June 1993 1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 1992 1993 1992r 1993 MMoonneettaarryy aanndd ccrreeddiitt aaggggrreeggaattee Q2 Q3 Q4r Ql Nov. Dec. Jan.r Feb. Mar. Reserves of depository institutions2 1 Total 14.8r 9.3 25.8 9.3 22.2 12.0 6.9 5.6 5.4 2 Required 15.3r 9.9 25.3 8.7 23.4 9.6 4.7 9.3 3.0 3 Nonborrowed 14.6r 8.4 27.1 9.5 23.2 11.6 6.0 8.3 4.4 4 Monetary base 7.8 10.5 12.6 9.1 10.4 10.2 8.3 8.5 8.9 Concepts of money, liquid assets, and debt4 Ml 10.6 11.7 16.8 6.5 15.7 8.8 7.7 -.5 2.4 6 M2 .3r .8 2.7 -2.1 2.3 -.3 -3.5 -4.4 -.8 7 M3 -,6r .1 -.2 -4.0 -.4 -3.4 -7.5 -2.3 -1.5 8 L 1.3r 1.1 1.9 n.a. 3.2 -.9 -5.2 -1.1 n.a. 9 Debt 5.7r 4.9r 4.4 n.a. 5.7 6.2 3.2 4.4 n.a. Nontransaction components 10 In M25 -3.4r -3.2 -2.8 -5.5 -3.2 -4.1 -8.1 -6.2 -2.2 11 In M3 only6 -4.9 -3.6 -14.4 -13.7 -13.9 -19.2 -28.3 9.2 -4.7 Time and savings deposits Commercial banks 12 Savings, iqcluding MMDAs 12.6 10.9 12.9 1.7 10.3 5.7 -3.2 2.7 -2.5 13 Small time -13.4 -17.4 -17.1 -7.5 -18.5 -11.5 -9.9 3.1 -2.9 14 Large time8,9 -13.3 -18.6 -18.4 -17.3 -16.2 -10.7 -26.9 -10.6 -18.8 Thrift institutions 15 Savings, including MMDAs 18.1 9.2 8.7 .0 9.9 5.6 1.1 -10.0 -4.5 16 Small time -29.8 -18.6 -21.7 -19.2 -21.3 -21.7 -16.5 -24.1 -12.6 17 Large time8' -31.9 -14.9 -11.3 -17.3 -29.1 -21.0 -3.6 -28.6 -18.3 Money market mutual funds IK General purpose and broker-dealer -6.6r -7.4r -4.2 -10.1 -9.0 -4.9 -9.5 -21.2 -1.8 19 Institution-only 23.9 32.9 -19.4 -14.3 -9.7 -39.6 -27.3 25.5 -8.3 Debt components4 20 14.4 10.7r 6.0 n.a. 10.5 16.3 2.9 5.3 n.a. 21 Nonfederal 2.8r 2.9r 3.8 n.a. 4.0 2.7 3.4 4.0 n.a. 1. Unless otherwise noted, rates of change are calculated from average offices in the United Kingdom and Canada, and (3) balances in both taxable and amounts outstanding during preceding month or quarter. tax-exempt, institution-only money market funds. Excludes amounts held by 2. Figures incorporate adjustments for discontinuities, or "breaks," associ- depository institutions, the U.S. government, money market funds, and foreign ated with regulatory changes in reserve requirements. (See also table 1.20.) banks and official institutions. Also excluded is the estimated amount of overnight 3. Seasonally adjusted, break-adjusted monetary base consists of (1) season- RPs and Eurodollars held by institution-only money market funds. Seasonally ally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted M3 is computed by adjusting its non-M2 component as a whole and then adjusted currency component of the money stock, plus (3) (for all quarterly adding this result to seasonally adjusted M2. reporters on the "Report of Transaction Accounts, Other Deposits, and Vault L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term Cash" and for all weekly reporters whose vault cash exceeds their required Treasury securities, commercial paper, and bankers acceptances, net of money reserves) the seasonally adjusted, break-adjusted difference between current vault market fund holdings of these assets. Seasonally adjusted L is computed by cash and the amount applied to satisfy current reserve requirements. summing U.S. savings bonds, short-term Treasury securities, commercial paper, 4. Composition of the money stock measures and debt is as follows: and bankers acceptances, each seasonally adjusted separately, and then adding Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults this result to M3. of depository institutions; (2) travelers checks of nonbank issuers; (3) demand Debt: Debt of domestic nonfinancial sectors consists of outstanding creditdeposits at all commercial banks other than those due to depository institutions, market debt of the U.S. government, state and local governments, and private the U.S. government, and foreign banks and official institutions, less cash items in nonfinancial sectors. Private debt consists of corporate bonds, mortgages, conthe process of collection and Federal Reserve float; and (4) other checkable sumer credit (including bank loans), other bank loans, commercial paper, bankers deposits (OCDs), consisting of negotiable order of withdrawal (NOW) and acceptances, and other debt instruments. Data are derived from the Federal automatic transfer service (ATS) accounts at depository institutions, credit union Reserve Board's flow of funds accounts. Data on debt of domestic nonfinancial share draft accounts, and demand deposits at thrift institutions. Seasonally sectors are monthly averages, derived by averaging adjacent month-end levels. adjusted Ml is computed by summing currency, travelers checks, demand Growth rates for debt reflect adjustments for discontinuities over time in the levels deposits, and OCDs, each seasonally adjusted separately. of debt presented in other tables. M2: Ml plus (1) overnight (and continuing-contract) repurchase agreements 5. Sum of (1) overnight RPs and Eurodollars, (2) money market fund balances (RPs) issued by all depository institutions and overnight Eurodollars issued to (general purpose and broker-dealer), (3) MMDAs, and (4) savings and small time U.S. residents by foreign branches of U.S. banks worldwide, (2) savings (includ- deposits. ing MMDAs) and small time deposits (time deposits—including retail repurchase 6. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U.S. agreements (RPs)—in amounts of less than $100,000), and (3) balances in both residents, and (4) money market fund balances (institution-only), less (5) a taxable and tax-exempt general-purpose and broker-dealer money market funds. consolidation adjustment that represents the estimated amount of overnight RPs Excludes individual retirement accounts (IRAs) and Keogh balances at depository and Eurodollars held by institution-only money market funds. This sum is institutions and money market funds. Also excludes afl 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 1993 1993 Jan. Feb. Mar. Feb. 17 Feb. 24 Mar. 3 Mar. 10 Mar. 17 Mar. 24 Mar. 31 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 336,822r 334,937 337,717 334,964 333,563 337,914 336,092 337,877 336,699 339,624 U.S. government securities 2 Bought outright—System account 297,541 297,289 298,823 297,127 298,136 297,420 297,661 298,672 300,087 299,897 3 Held under repurchase agreements ... 2,582 1,358 1,984 1,008 0 4,178 2,327 1,628 0 2,213 Federal agency obligations 4 Bought outright 5,379 5,271 5,173 5,260 5,260 5,225 5,216 5,165 5,165 5,123 5 Held under repurchase agreements ... 189 73 112 64 0 252 202 37 0 164 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 182 22 69 14 24 48 6 137 13 120 8 Seasonal credit 10 18 26 19 22 18 19 25 31 32 9 Extended credit 1 0 0 0 0 0 0 0 0 0 10 Float l,025r 763 1,188 1,110 997 974 718 2,237 777 1,018 11 Other Federal Reserve assets 29,913 30,143 30,342 30,362 29,123 29,799 29,944 29,977 30,626 31,057 12 Gold stock 11,055 11,055 11,055 11,055 11,055 11,055 11,055 11,055 11,055 11,054 13 Special drawing rights certificate account . 8,018 8,018 8,018 8,018 8,018 8,018 8,018 8,018 8,018 8,018 14 Treasury currency outstanding 21,470r 21,510 21,560 21,509 21,518 21,528 21,542 21,556 21,570 21,584 ABSORBING RESERVE FUNDS 15 Currency in circulation 330,334r 329,470 331,650 330,480 330,217 329,941 331,101 331,893 332,044 332,174 16 Treasury cash holdings 505 467 509 464 463 470 512 512 512 512 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 7,693 6,018 5,472 4,791 4,967 6,017 5,395 5,563 5,026 5,243 18 Foreign 215 243 290 240 237 254 202 375 238 370 19 Service-related balances and adjustments 6,426r 6,289 6,501 6,170 6,180 6,413 6,535 6,304 6,296 6,905 20 Other 285 302 347 305 306 327 344 344 334 362 21 Other Federal Reserve liabilities and capital 8,523 9,006 9,091 8,925 8,928 9,130 9,113 9,093 9,064 9,069 22 Reserve balances with Federal Reserve Banks3 23,386r 23,724 24,490 24,171 22,856 25,964 23,506 24,423 23,828 25,644 End-of-month figures Wednesday figures Jan. Feb. Mar. Feb. 17 Feb. 24 Mar. 3 Mar. 10 Mar. 17 Mar. 24 Mar. 31 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 333,077r 337,550 343,479 336,621 335,258 339,027 333,188 333,908 337,988 343,479 U.S. government securities 2 Bought outright—System account 296,977 298,835 298,461 297,025 299,778 296,079 297,810 297,015 299,440 298,461 3 Held under repurchase agreements ... 0 2,655 6,756 2,831 0 7,130 300 50 0 6,756 Federal agency obligations 4 Bought outright 5,310 5,225 5,123 5,260 5,260 5,225 5,165 5,165 5,165 5,123 5 Held under repurchase agreements ... 0 275 567 150 0 145 107 0 0 567 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 7 Adjustment credit 21 40 720 17 27 43 8 894 16 720 8 9 E Se x a t s e o n n d a e l d c c r r e e d d it i t 1 4 0 1 0 7 3 0 2 2 0 2 22 0 1 0 8 21 0 29 0 28 0 32 e 10 Float 226r 663 380 1,887 930 385 -14 771 2,568 380 11 Other Federal Reserve assets 30,529 29,841 31,439 29,430 29,241 30,003 29,793 29,985 30,771 31,439 12 Gold stock 11,055 11,055 11,054 11,055 11,055 11,055 11,055 11,055 11,055 11,054 13 Special drawing rights certificate account . 8,018 8,018 8,018 8,018 8,018 8,018 8,018 8,018 8,018 8,618 14 Treasury currency outstanding 21,490r 21,528 21,584 21,509 21,518 21,528 21,542 21,556 21,570 21,584 ABSORBING RESERVE FUNDS 15 Currency in circulation 326,573r 329,621 332,829 330,984 329,924 330,4% 331,657 332,121 332,032 332,829 16 Treasury cash holdings 508 463 515 463 463 512 512 512 512 515 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 9,572 5,350 6,752 4,869 4,973 7,640 5,242 6,930 5,216 6,752 18 Foreign 244 296 318 256 232 224 230 707 288 318 19 Service-related balances and adjustments 6,004r 6,413 6,905 6,170 6,180 6,413 6,535 6,304 6,2% 6,905 20 Other 282 302 314 324 282 351 347 352 327 314 21 Other Federal Reserve liabilities and capital 9,141 9,180 8,844 8,773 8,817 8,982 8,863 8,922 8,953 8,844 22 Reserve balances with Federal Reserve Banks 21,315r 26,526 27,660 25,365 24,978 25,010 20,418 18,687 25,007 27,660 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 NonfinancialS tatistics • June 1993 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Prorated monthly averages of biweekly averages RReesseerrvvee ccllaassssiiffiiccaattiioonn 1990 1991 1992 1992 1993 Dec. Dec. Dec. Sept. Oct. Nov. Dec. Jan.r Feb. Mar. 1 Reserve balances with Reserve Banks 30,237 26,659 25,368 22,627 23,626 25,462 25,368 23,636 23,515 24,384 2 Total vault cash3 31,789r 32,510 34,535 32,342 32,987 32,457 34,535 35,991 33,914 33,293 3 Applied vault cash4, 28,884 28,872 31,172 28,894 29,510 29,205 31,172 32,368 30,368 29,913 4 Surplus vault cash 2,905r 3,638 3,364 3,448 3,477 3,252 3,364 3,623 3,546 3,380 5 Total reserves6 59,120 55,532 56,540 51,521 53,136 54,666 56,540 56,004 53,882 54,297 6 Required reserves 57,456 54,553 55,385 50,527 52,062 53,624 55,385 54,744 52,778 53,084 7 Excess reserve balances at Resewe Banks ... 1,664 979 1,155 994 1,074 1,043 1,155 1,260 1,104 1,214 8 Total borrowings at Reserve Banks 326 192 124 287 143 104 124 165 45 91 9 Seasonal borrowings 76 38 18 193 114 40 18 11 18 26 10 Extended credit9 23 1 1 0 0 0 1 1 0 0 Biweekly averages of daily figures for weeks ending 1992 1993 Nov. 25 Dec. 9 Dec. 23 Jan. 6 Jan. 20 Feb. 3r Feb. 17 Mar. 3 Mar. 17 Mar. 31 1 Reserve balances with Reserve Banks 25,730 24,548 25,209 26,569 24,057 21,500 23,301 24,335 24,029 24,750 2 Total vault cash3 32,398 34,315 34,770 34,374 36,388r 36,368 34,764 32,163 34,487 32,343 3 Applied vault cash4, 29,117 30,918 31,373 31,105 32,829 32,470 31,069 28,902 30,944 29,099 4 Surplus vault cash5 3,281 3,397 3,397 3,269 3,559r 3,898 3,695 3,261 3,543 3,244 5 Total reserves 54,846 55,466 56,582 57,674 56,886 53,970 54,370 53,237 54,973 53,849 6 Required reserves ... 53,485 54,625 55,357 56,289 55,657 52,740 52,875 52,666 53,683 52,574 7 Excess reserve balances at Reserve Banks ... 1,361 841 1,225 1,385 1,229 1,230 1,495 571 1,290 11,,227755 8 Total borrowings at Reserve Banks8 138 95 60 269 202 64 33 56 93 9988 9 Seasonal borrowings 37 22 19 12 11 11 18 20 22 32 10 Extended credit9 0 0 2 0 1 3 0 0 0 0 1. Data in this table also appear in the Board's H.3 (502) weekly statistical 5. Total vault cash (line 2) less applied vault cash (line 3). release. For ordering address, see inside front cover. 6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash 2. Excludes required clearing balances and adjustments to compensate for float (line 3). and includes other off-balance-sheet "as-of" adjustments. 7. Total reserves (line 5) less required reserves (line 6). 3. Total "lagged" vault cash held by depository institutions subject to reserve 8. Also includes adjustment credit. requirements. Dates refer to the maintenance periods during which the vault cash 9. Consists of borrowing at the discount window under the terms and condican be used to satisfy reserve requirements. Under contemporaneous reserve tions established for the extended credit program to help depository institutions requirements, maintenance periods end thirty days after the lagged computation deal with sustained liquidity pressures. Because there is not the same need to periods during which the balances are held. repay such borrowing promptly as there is with traditional short-term adjustment 4. All vault cash held during the lagged computation period by "bound" credit, the money market impact of extended credit is similar to that of institutions (that is, those whose required reserves exceed their vault cash) plus nonborrowed reserves. the amount of vault cash applied during the maintenance period by "nonbound" institutions (that is, those whose vault cash exceeds their required reserves) to satisfy current reserve requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A7 1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Banks1 Millions of dollars, averages of daily figures 1992, week ending 1993, week ending Monday SSoouurrccee aanndd mmaattuurriittyy Monday Dec. 28 Jan. 4 Jan. 11 Jan. 18 Jan. 25 Feb. 1 Feb. 8 Feb. 15 Feb. 22 Federal funds purchased, repurchase agreements, and other selected borrowings From commercial banks in the United States 1 For one day or under continuing contract 71,828 74,152 75,358 71,974 66,898 69,127 71,676 70,934 69,724 2 For all other maturities 13,825 14,797 13,384 13,895 13,456 14,029 13,669 14,049 13,622 From other depository institutions, foreign banks and official institutions, and U.S. government agencies 3 For one day or under continuing contract 20,597 19,060 20,531 20,277 19,888 17,824 17,465 17,264 20,090 4 For all other maturities 18,783 16,955 17,419 17,441 17,469 17,841 18,837 21,448 21,375 Repurchase agreements on U.S. government and federal agency securities Brokers and nonbank dealers in securities 5 For one day or under continuing contract 10,237 9,686 11,117 8,554 10,218 10,857 9,270 10,038 13,355 6 For all other maturities 18,341r 18,588 18,592 18,933 18,994 19,447 20,935 22,955 21,937 All other customers 7 For one day or under continuing contract 22,808 23,596 23,582 23,673 24,379 24,283 23,927 22,917 24,806 8 For all other maturities 14,151 13,605 13,567 13,755 13,344 13,866 12,655 13,304 13,440 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 37,991 41,340 37,458 37,316 37,614 41,221 39,000 39,517 38,715 10 To all other specified customers2 18,270 20,812 18,322 22,669 19,362 18,469 21,417 21,233 18,716 1. Banks with assets of $4 billion or more as of Dec. 31, 1988. 2. Brokers and nonbank dealers in securities, other depository institutions, Data in this table also appear in the Board's H.5 (507) weekly statistical release. foreign banks and official institutions, and U.S. government agencies. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic NonfinancialS tatistics • June 1993 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Adjustment credit1 Seasonal credit2 Extended credit3 FFeeddeerraall RReesseerrvvee BBaannkk 4/3 O 0 n /9 3 Effective date Previous rate 4/3 O 0 n /9 3 Effective date Previous rate 4/3 O 0 n /9 3 Effective date Previous rate Boston 3 7/2/92 3.5 3.00 4/29/93 3.05 3.50 4/29/93 3.55 New York 7/2/92 4/29/93 4/29/93 Philadelphia , 7/2/92 4/29/93 4/29/93 Cleveland 7/6/92 4/29/93 4/29/93 Richmond 7/2/92 4/29/93 4/29/93 Atlanta 7/2/92 4/29/93 4/29/93 Chicago 7/2/92 4/29/93 4/29/93 St. Louis 7/7/92 4/29/93 4/29/93 Minneapolis 7/2/92 4/29/93 4/29/93 Kansas City 7/2/92 4/29/93 4/29/93 Dallas 7/2/92 4/29/93 4/29/93 San Francisco ... 3 7/2/92 3.5 3.00 4/29/93 3.05 3.50 4/29/93 3.55 Range of rates for adjustment credit in recent years4 Range (or F.R. Range (or F.R. Range (or F.R. Effective date A le l v l e F l) . — R. Ba o n f k Effective A le l v l e F l) : — R. Ba o n f k Effective date A le l v l e F l) . — R. Ba o n f k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1977 6 6 1981-—May 5 13-14 14 1986—Aug. 21 5.5-6 5.5 14 14 22 5.5 5.5 1978—Jan. 9 6-6.5 6.5 Nov. ? 13-14 13 20 6.5 6.5 6 13 13 1987—Sept. 4 5.5-6 6 MMaayy 11 6.5-7 7 Dec. 4 12 12 11 6 6 12 7 7 JJuullyy 3 7-7.25 7.25 1982--July 70 11.5-12 11.5 1988—Aug. 9 6-6.5 6.5 10 7.25 7.25 7\ 11.5 11.5 11 Aug. 21 7.75 7.75 Aug. ? 11-11.5 11 Sept. 22 8 8 3 11 11 1989—Feb. 24 6.5-7 7 Oct. 16 8-8.5 8.5 16 10.5 10.5 27 7 7 20 8.5 8.5 77 10-10.5 10 Nov. 1 8.5-9.5 9.5 30 10 10 1990—Dec. 19 6.5 6.5 3 9.5 9.5 Oct. 17 9.5-10 9.5 13 9.5 9.5 1991—Feb. 1 6-6.5 6 1979—July 20 10 10 Nov. 77 9-9.5 9 4 6 6 AAuugg.. 17 10-10.5 10.5 76 9 9 Apr. 30 5.5-6 5.5 20 10.5 10.5 Dec. 14 8.5-9 9 May 2 5.5 5.5 SSeepptt.. 19 10.5-11 11 15 8.5-9 8.5 Sept. 13 5-5.5 5 21 11 11 17 8.5 8.5 Sept. 17 5 5 Oct. 8 11-12 12 Nov. 6 4.5-5 4.5 10 12 12 1984-—Apr. 9 8.5-9 9 7 4.5 4.5 13 9 9 Dec. 20 3.5-4.5 3.5 1980—Feb. 15 12-13 13 Nov. 71 8.5-9 8.5 24 3.5 3.5 19 13 13 76 8.5 8.5 MMaayy 29 12-13 13 Dec. 74 8 8 1992—July 2 3-3.5 3 30 12 12 7 3 3 June 13 11-12 11 1985-—May 70 7.5-8 7.5 16 11 11 74 7.5 7.5 29 10 10 IInn eeffffeecctt AApprr.. 3300,, 11999933 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. 71 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 deposit2 Net transaction accounts3 1 $0 miilion-$46.8 million... 12/15/92 2 More than $46.8 million4.. 12/15/92 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 116 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 1 Vi years negotiable order of withdrawal (NOW) accounts (NOW accounts less allowable or more has been zero since Oct. 6, 1983. deductions); and (2) net other transaction accounts. The exemption applies only to For institutions that report quarterly, the reserve requirement on nonpersonal accounts that would be subject to a 3 percent reserve requirement. time deposits with an original maturity of less than 1 Vi years was reduced from 3 3. Include all deposits against which the account holder is permitted to make percent to zero on Jan. 17, 1991. withdrawals by negotiable or transferable instruments, payment orders of with- 6. The reserve requirement on Eurocurrency liabilities was reduced from 3 drawal, and telephone and preauthorized transfers in excess of three per month percent to zero in the same manner and on the same dates as were the reserve for the purpose of making payments to third persons or others. However, money requirement on nonpersonal time deposits with an original maturity of less than market deposit accounts (MMDAs) and similar accounts subject to the rules that 1 Vi years (see note 4). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Nonfinancial Statistics • June 1993 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars 1992 1993 TTyyppee ooff ttrraannssaaccttiioonn 11999900 11999911 11999922 Aug. Sept. Oct. Nov. Dec. Jan. Feb. U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 24,739 20,158 14,714 271 595 4,072 1,064 3,669 0 0 2 Gross sales 7,291 120 1,628 0 0 0 0 0 0 0 Exchanges 241,086 277,314 308,699 25,041 22,277 28,907 25,468 29,562 24,542 19,832 4 Redemptions 4,400 1,000 1,600 0 0 0 0 0 0 0 Others within one year 5 Gross purchases 425 3,043 1,0% 0 350 0 461 0 0 0 6 Gross sales 0 0 0 0 0 0 0 0 0 0 7 Maturity shifts 25,638 24,454 36,662 4,448 2,753 2,010 7,160 2,777 561 2,892 8 Exchanges -27,424 -28,090 -30,543 -4,617 -1,905 -982 -4,615 -1,570 -1,202 -6,044 9 Redemptions 0 1,000 0 0 0 0 0 0 0 0 One to five years 10 Gross purchases 250 6,583 13,118 400 3,500 200 4,172 200 0 0 11 Gross sales 200 0 0 0 0 0 0 0 0 0 1? Maturity shifts -21,770 -21,211 -34,478 -4,036 -2,753 -1,762 -6,800 -2,777 -64 -2,617 13 Exchanges 25,410 24,594 25,811 3,567 1,905 884 3,415 1,570 882 4,564 Five to ten years 14 Gross purchases 0 1,280 2,818 195 750 0 1,176 100 0 0 15 Gross sales 100 0 0 0 0 0 0 0 0 0 16 Maturity shifts -2,186 -2,037 -1,915 -412 0 -248 -187 0 -497 -98 17 Exchanges 789 2,894 3,532 700 0 97 800 0 0 0 More than ten years 18 Gross purchases 0 375 2,333 0 731 0 947 0 0 0 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shifts -1,681 -1,209 -269 0 0 0 -173 0 0 -177 21 Exchanges 1,226 600 1,200 350 0 0 400 0 0 480 AH maturities 22 Gross purchases 25,414 31,439 34,079 866 5,927 4,272 7,820 3,969 0 0 23 Gross sales 7,591 120 1,628 0 0 0 0 0 0 0 24 Redemptions 4,400 1,000 1,600 0 0 0 0 0 0 0 Matched transactions ?<I Gross sales 1,369,052 1,570,456 1,482,467 103,708 116,331 116,024 115,020 144,232 114,543 111,491 26 Gross purchases 1,363,434 1,571,534 1,480,140 101,410 115,579 114,917 117,020 142,578 116,510 113,349 Repurchase agreements2 27 Gross purchases 221199,,663322 310,084 378,374 39,484 68,697 18,698 42,373 48,904 34,768 28,544 28 Gross sales 202,551 311,752 386,257 31,868 59,628 35,383 39,117 44,697 42,231 25,889 29 Net change in U.S. government securities 24.886 29,729 20,642 6,184 14,244 -13,520 13,075 6,521 -5,497 4,513 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 0 0 0 0 0 0 0 0 0 0 31 Gross sales 0 5 0 0 0 0 0 0 0 0 32 Redemptions 183 292 632 54 37 0 0 121 103 85 Repurchase agreements2 33 Gross purchases 41,836 2222,,880077 1144,,556655 601 3,222 1,778 2,760 1,601 2,237 1,107 34 Gross sales 40,461 23,595 14,486 548 1,800 3,253 2,506 1,224 2,868 832 35 Net change in federal agency obligations 1,192 -1,085 -554 -1 1,385 -1,475 254 256 -734 190 36 Total net change in System Open Market Account 26,078 28,644 20,089 6,183 15,629 -14,995 13,329 6,777 -6,231 4,703 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 Account 1993 1993 Mar. 3 Mar. 10 Mar. 17 Mar. 24 Mar. 31 Jan. 31 Feb. 28 Mar. 31 Consolidated condition statement ASSETS 1 Gold certificate account 11,055 11,055 11,055 11,055 11,054 11,055 11,055 11,054 2 Special drawing rights certificate account 8,018 8,018 8,018 8,018 8,018 8,018 8,018 8,018 3 Coin 527 524 519 516 503 519 525 503 Loans 4 To depository institutions 61 28 922 44 753 35 57 753 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 1 Bought outright 5,225 5,165 5,165 5,165 5,123 5,310 55,,222255 55,,112233 8 Held under repurchase agreements 145 107 0 0 567 0 275 567 9 Total U.S. Treasury securities 303,209 298,110 297,065 299,440 305,217 296,977 301,490 305,217 10 Bought outright2 296,079 297,810 297,015 299,440 298,461 296,977 298,835 298,461 11 Bills 142,862 144,593 143,799 143,083 142,104 143,761 145,618 142,104 12 Notes 117,955 117,955 117,955 120,211 120,211 118,179 117,955 120,211 13 Bonds 35,261 35,261 35,261 36,146 36,146 35,037 35,261 36,146 14 Held under repurchase agreements 7,130 300 50 0 6,756 0 2,655 6,756 15 Total loans and securities 308,639 303,410 303,152 304,649 311,660 302,321 307,046 311,660 16 Items in process of collection 6,914 5,020 6,129 7,148 5,338 4,565 4,937 5,338 17 Bank premises 1,027 1,027 1,029 1,030 1,031 1,026 1,026 1,031 Other assets 18 Denominated in foreign currencies3 22,276 22,301 22,326 22,384 22,328 21,980 22,263 2222,,332288 19 All other4 6,708 6,497 6,636 7,361 8,092 7,572 6,577 8,092 20 Total assets 365,165 357,852 358,864 362,161 368,024 357,057 361,446 368,024 LIABILITIES 21 Federal Reserve notes 310,007 311,151 311,596 311,490 312,263 306,110 309,080 312,263 22 Total deposits 40,460 33,190 33,577 37,113 41,917 37,632 39,034 41,917 23 Depository institutions 32,246 27,373 25,587 31,282 34,533 27,533 33,085 34,533 24 U.S. Treasury—General account 7,640 5,242 6,930 5,216 6,752 9,572 5,350 6,752 25 Foreign—Official accounts 224 230 707 288 318 244 296 318 26 Other 351 347 352 327 314 282 302 314 27 Deferred credit items 5,716 4,648 4,769 4,605 5,001 4,174 4,152 5,001 28 Other liabilities and accrued dividends 2,290 2,254 2,303 2,268 2,251 2,288 2,323 2,251 29 Total liabilities 358,473 351,243 352,245 355,476 361,430 350,204 354,589 361,430 CAPITAL ACCOUNTS 30 Capital paid in 3,118 3,155 3,159 3,179 3,187 3,074 3,116 3,187 31 Surplus 3,054 3,054 3,054 3,054 3,054 2,974 3,054 3,054 32 Other capital accounts 520 400 406 452 353 806 687 353 33 Total liabilities and capital accounts 365,165 357,852 358,864 362,161 368,024 357,057 361,446 368,024 MEMO 34 Marketable U.S. Treasury securities held in custody for foreign and international accounts 303,372 304,117 301,803 302,617 304,825 297,501 306,378 304,825 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to Bank) 371,135 372,175 372,940 373,719 373,886 366,486 370,756 373,886 36 LESS: Held by Federal Reserve Bank 61,128 61,024 61,344 62,230 61,624 60,376 61,676 61,624 37 Federal Reserve notes, net 310,007 311,151 311,596 311,490 312,263 306,110 309,080 312,263 Collateral held against notes, net: 38 Gold certificate account 11,055 11,055 11,055 11,055 11,054 11,055 11,055 1111,,005544 39 Special drawing rights certificate account 8,018 8,018 8,018 8,018 8,018 8,018 8,018 8,018 40 Other eligible assets 0 0 0 0 0 0 0 0 41 U.S. Treasury and agency securities 290,934 292,078 292,524 292,417 293,190 287,037 290,007 293,190 42 Total collateral 310,007 311,151 311,596 311,490 312,263 306,110 309,080 312,263 1. Some of the data in this table also appear in the Board's H.4.1 (503) weekly 3. Valued monthly at market exchange rates. statistical release. For ordering address, see inside front cover. 4. Includes special investment account at the Federal Reserve Bank of Chicago 2. Includes securities loaned—fully guaranteed by U.S. Treasury securities in Treasury bills maturing within ninety days. pledged with Federal Reserve Banks—and excludes securities sold and scheduled 5. Includes exchange-translation account reflecting the monthly revaluation at to be bought back under matched sale-purchase transactions. market exchange rates of foreign exchange commitments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Nonfinancial Statistics • June 1993 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holding 1 Millions of dollars Wednesday End of month Type and maturity grouping 1993 1993 Mar. 3 Mar. 17 Mar. 24 Mar. 31 Jan. 31 Feb. 28 1 Total loans 922 753 2 Within fifteen days 920 741 3 Sixteen days to ninety days . 0 3 1 0 2 4 Ninety-one days to one year 5 Total acceptances 0 0 0 6 Within fifteen days 0 0 0 7 Sixteen days to ninety days. 0 0 0 8 Ninety-one days to one year 9 Total U.S. Treasury securities.. 303,209 298,110 297,065 299,440 305,217 296,977 301,490 1 1 1 1 1 1 0 1 2 3 4 5 W O F N S M i i i n i x v o n t e e t r h e e e y t i y e n y e n t e - a h a o f r a d r i n f n s a t t e e o y t t e s o d e n f n i a t v t o y d e e y s n a n e y y a t i y o e n s r e 2 a s e a o r t r y s n s e d a ye ys a r . 6 9 7 2 1 1 8 6 0 8 9 9 , . . , , , 9 7 7 0 6 1 2 5 5 4 2 0 1 2 3 8 8 8 7 9 7 2 1 1 3 0 8 3 2 9 , , , , , , 4 7 9 2 6 1 1 4 5 2 7 0 1 1 3 8 0 8 9 7 7 2 1 1 6 0 0 8 9 1 , , , , , , 5 7 6 6 1 4 1 5 5 2 1 0 1 3 0 8 6 8 6 9 2 7 2 1 0 7 6 2 8 3 , , , , , , 3 7 5 1 8 7 4 6 9 9 4 1 4 0 0 4 0 3 9 6 7 2 2 1 9 7 1 0 8 7 , , , , , , 0 8 2 3 8 8 3 5 4 8 1 8 7 5 4 0 3 9 7 9 6 2 1 9 8 8 4 7 8 , , , , , , 3 1 6 2 8 7 1 6 8 8 0 2 1 0 6 9 5 6 7 9 7 2 1 1 7 2 0 8 3 9 , , , , , , 4 2 6 3 6 1 3 9 3 9 2 0 3 1 1 9 8 8 16 Total federal agency obligations 5,370 5,272 5,165 5,164 5,690 5,310 5,500 17 Within fifteen days2 255 148 271 271 855 183 723 18 Sixteen days to ninety days . 789 748 543 543 507 840 513 19 Ninety-one days to one year 1,094 1,094 1,069 1,069 1,057 1,023 1,022 20 One year to five years 2,379 2,379 2,429 2,429 2,419 2,426 2,389 21 Five years to ten years 711 761 711 711 711 696 711 22 More than ten years 142 142 142 142 142 142 142 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 1992r 1993 1989 1990 1991 1992 IItteemm Dec. Dec. Dec. Dec/ Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Seasonally adjusted AADDJJUUSSTTEEDD FFOORR CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves3 40.491 41.77r 45.53r 54.35 50.34 51.27 52.84 53.82 54.35 54.67r 54.92 55.17 2 Nonborrowed reserves 40.23r 41.44r 45.34r 54.23 50.09 50.99 52.69 53.71 54.23 54.50r 54.88 55.08 3 Nonborrowed reserves plus extended credit 40.25r 41.46r 45.34r 54.23 50.09 50.99 52.69 53.71 54.23 54.50" 54.88 55.08 4 Required reserves 39.57r 40.101 44.56r 53.20 49.41 50.28 51.76 52.77 53.20 53.41r 53.82 53.95 5 Monetary base 267.73r 293.19" 317.17r 350.80 336.84 341.59 344.85 347.83 350.80 353.22r 355.74 358.38 Not seasonally adjusted 6 Total reserves7 41.77 43.07 46.98 56.06 49.78 51.07 52.62 54.08 56.06 55.97 53.81 54.18 7 Nonborrowed reserves 41.51 42.74 46.78 55.93 49.53 50.78 52.47 53.97 55.93 55.80 53.77 54.09 8 Nonborrowed reserves plus extended credit 41.53 42.77 46.78 55.93 49.53 50.78 52.47 53.97 55.93 55.80 53.77 54.09 9 Required reserves8 40.85 41.40 46.00 54.90 48.84 50.08 51.54 53.04 54.90 54.71 52.71 52.97 10 Monetary base 271.18 296.68 321.07 354.55 336.57 340.08 343.63 347.89 354.55 354.41R 353.18 356.00 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS10 11 Total reserves" 62.81 59.12 55.53 56.54 50.16 51.52 53.14 54.67 56.54 56.00 53.88 54.30 12 Nonborrowed reserves 62.54 58.80 55.34 56.42 49.91 51.23 52.99 54.56 56.42 55.84 53.84 54.21 N Nonborrowed reserves plus extended credit 62.56 58.82 55.34 56.42 49.91 51.23 52.99 54.56 56.42 55.84 53.84 54.21 14 Required reserves 61.89 57.46 54.55 55.39 49.23 50.53 52.06 53.62 55.39 54.74R 52.78 53.08 15 Monetary base 292.55 313.70 333.61 360.90 342.49 346.21 349.81 354.25 360.90 360.88R 359.56 362.59 16 Excess reserves .92 1.66 .98 1.16 .94 .99 1.07 1.04 1.16 1.26 1.10 1.21 17 Borrowings from the Federal Reserve .27 .33 .19 .12 .25 .29 .14 .10 .12 .17 .05 .09 1. Latest monthly and biweekly figures are available from the Board's H.3 (502) what required reserves would have been in past periods had current reserve weekly statistical release. Historical data and estimates of the impact on required requirements been in effect. Break-adjusted required reserves include required reserves of changes in reserve requirements are available from the Monetary and reserves against transactions deposits and nonpersonal time and savings deposits Reserves Projections Section, Division of Monetary Affairs, Board of Governors (but not reservable nondeposit liabilities). of the Federal Reserve System, Washington, DC 20551. 9. The break-adjusted monetary base equals (1) break-adjusted total reserves 2. Figures reflect adjustments for discontinuities, or "breaks," associated with (line 6), plus (2) the (unadjusted) currency component of the money stock, plus (3) regulatory changes in reserve requirements. (See also table 1.10) (for all quarterly reporters on the "Report of Transaction Accounts, Other 3. Seasonally adjusted, break-adjusted total reserves equal seasonally Deposits and Vault Cash" and for all weekly reporters whose vault cash exceeds adjusted, break-adjusted required reserves (line 4) plus excess reserves (line 16). their required reserves) the break-adjusted difference between current vault cash 4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally and the amount applied to satisfy current reserve requirements. adjusted, break-adjusted total reserves (line 1) less total borrowings of depository 10. Reflects actual reserve requirements, including those on nondeposit liabilinstitutions from the Federal Reserve (line 17). ities, with no adjustments to eliminate the effects of discontinuities associated 5. Extended credit consists of borrowing at the discount window under with changes in reserve requirements. the terms and conditions established for the extended credit program to help 11. Reserve balances with Federal Reserve Banks plus vault cash used to depository institutions deal with sustained liquidity pressures. Because there is satisfy reserve requirements. not the same need to repay such borrowing promptly as there is with traditional 12. The monetary base, not break-adjusted and not seasonally adjusted, short-term adjustment credit, the money market impact of extended credit is consists of (1) total reserves (line 11), plus (2) required clearing balances and similar to that of nonborrowed reserves. adjustments to compensate for float at Federal Reserve Banks, plus (3) the 6. The seasonally adjusted, break-adjusted monetary base consists of (1) currency component of the money stock, plus (4) (for all quarterly reporters on seasonally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all adjusted currency component of the money stock, plus (3) (for all quarterly those weekly reporters whose vault cash exceeds their required reserves) the reporters on the "Report of Transaction Accounts, Other Deposits and Vault difference between current vault cash and the amount applied to satisfy current Cash" and for all those weekly reporters whose vault cash exceeds their required reserve requirements. Since the introduction of changes in reserve requirements reserves) the seasonally adjusted, break-adjusted difference between current vault (CRR), currency and vault cash figures have been measured over the computation cash and the amount applied to satisfy current reserve requirements. periods ending on Mondays. 7. Break-adjusted total reserves equal break-adjusted required reserves (line 9) 13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14). plus excess reserves (line 16). 8. To adjust required reserves for discontinuities that are due to regulatory changes in reserve requirements, a multiplicative procedure is used to estimate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Nonfinancial Statistics • June 1993 1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1 Billions of dollars, averages of daily figures 1992 1993 IItteemm D 19 e 8 c 9 / D 1 e 9 c 9 . 0 r D 19 e 9 c 1 . D 1 e 9 c 92 .r Dec.r Jan.r Feb. Mar. Seasonally adjusted Measures2 1 Ml 794.6 827.2 899.3 1,026.6 1,026.6 1,033.2 1,032.8 1,034.9 2 M2 3,233.3 3,345.5 3,445.8 3,497.0 3,497.0 3,486.9 3,474.0 3,471.7 3 M3 4,056.1 4,116.7 4,168.1 4,166.5 4,166.5 4,140.6 4,132.7 4,127.7 4 L 4,886.1 4,965.2 4,982.2 5,051.4 5,051.4 5,029.4 5,024.8 n.a. 5 Debt 10,076.7 10,751.3 ll,192.7r 11,768.2 11,768.2 11,800.0 11,843.0 n.a. Ml components 6 Currency 222.7 246.7 267.2 292.3 292.3 294.8 296.9 299.0 7 Travelers checks4 6.9 7.8 7.8 8.1 8.1 8.0 8.0 8.0 8 Demand deposits5 279.8 278.2 290.5 340.9 340.9 341.9 341.9 341.9 9 Other checkable deposits6 285.3 294.5 333.8 385.2 385.2 388.5 386.1 386.0 Nontrgnsaction components 10 In M27 2,438.7 2,518.3 2,546.6 2,470.4 2,470.4 2,453.8 2,441.2 2,436.7 11 In M38 822.8 771.2 722.3 669.5 669.5 653.7 658.7 656.1 Commercial banks 12 Savings deposits, including MMDAs 541.4 582.2 666.2 756.1 756.1 754.1 755.8 754.2 13 Small time deposits 534.9 610.3 601.5 507.0 507.0 502.8 504.1 502.9 14 Large time deposits10, 11 387.7 368.7 341.3 290.2 290.2 283.7 281.2 276.8 Thrift institutions 15 Savings deposits, including MMDAs 349.6 338.6 376.3 429.9 429.9 430.3 426.7 425.1 16 Small time deposits 617.8 562.0 463.2 363.2 363.2 358.2 351.0 347.3 17 Large time deposits10 161.1 120.9 83.4 67.3 67.3 67.1 65.5 64.5 Money market mutual funds 18 General purpose and broker-dealer 317.4 350.5 363.9 342.3 342.3 339.6 333.6 333.1 19 Institution-only 108.8 135.9 182.1 202.3 202.3 197.7 201.9 200.5 Debt components 20 Federal debt 2,249.5 2,493.4 2,764.8 3,068.8 3,068.8 3,076.3 3,090.0 n.a. 21 Nonfederal debt 7,827.2 8,257.9 8,428.0r 8,699.4 8,699.4 8,723.7 8,753.0 n.a. Not seasonally adjusted Measures 22 Ml 811.5 843.7 916.4 1,045.7 1,045.7 1.040.1 1,022.0 1.030.4 23 M2 3,245.1 3,357.0 3,457.9 3.511.2 3.511.2 3,492.7 3.468.0 3.478.5 24 M3 4,066.4 4,126.3 4.178.1 4,178.5 4,178.5 4.143.2 4.130.1 4,137.7 25 L 4,906.0 4,986.5 5.004.2 5.076.3 5.076.3 5.046.3 5,025.1 n.a. 26 Debt 10,063.6 10,739.9 ll,182.8r 11,760.6 11,760.6 11,787.2 11,811.8 n.a. Ml components 27 Currency3 , 225.3 249.5 269.9 295.0 295.0 293.6 295.3 297.9 28 Travelers checks 6.5 7.4 7.4 7.8 7.8 7.8 7.7 7.8 29 Demand deposits5 291.5 289.9 302.9 355.3 355.3 346.2 334.3 336.3 30 Other checkable deposits 288.1 296.9 336.3 387.7 387.7 392.6 384.6 388.5 Nontrgnsaction components 31 InM27 2,433.6 2,513.2 2,541.5 2,465.4 2,465.4 2,452.6 2,446.0 2,448.1 32 In M38 821.4 769.3 720.1 667.3 667.3 650.5 662.1 659.2 Commercial banks 33 Savings deposits, including MMDAs 543.0 580.1 663.3 752.3 752.3 749.5 753.1 757.7 34 Small time deposits 533.8 610.5 602.0 507.8 507.8 504.6 504.8 502.3 35 Large time deposits10' 11 386.9 367.7 340.1 289.1 289.1 281.7 280.8 277.7 Thrift institutions 36 Savings deposits, including MMDAs 347.4 337.3 374.7 427.8 427.8 427.7 425.2 427.1 37 Small time deposits 616.2 562.1 463.6 363.8 363.8 359.4 351.4 346.9 38 Large time deposits10 162.0 120.6 83.1 67.1 67.1 66.6 65.4 64.7 Money market mutual funds 39 General purpose and broker-dealer 315.7 348.4 361.5 340.0 340.0 339.2 339.8 342.2 40 Institution-only 109.1 136.2 182.4 202.4 202.4 202.3 210.3 203.2 Repurchase agreements and eurodollars 41 Overnight 77.5 74.7 76.3 73.9 73.9 72.3 71.6 71.9 42 Term 178.4 158.3 130.1 126.2 126.2 123.0 127.6 133.5 Debt components 43 Federal debt 2,247.5 2,491.3 2,765.0 3,069.8 3,069.8 3,076.2 3.087.3 n.a. 44 Nonfederal debt 7,816.2 8,248.5 8,417.9" 8,690.8 8,690.8 8,711.1 8.724.4 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) market fund holdings of these assets. Seasonally adjusted L is computed by weekly statistical release. Historical data are available from the Money and summing U.S. savings bonds, short-term Treasury securities, commercial paper, Reserves Projection Section, Division of Monetary Affairs, Board of Governors of and bankers acceptances, each seasonally adjusted separately, and then adding the Federal Reserve System, Washington, DC 20551. this result to M3. 2. Composition of the money stock measures and debt is as follows: Debt: Debt of domestic nonfinancial sectors consists of outstanding credit Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults market debt of the U.S. government, state and local governments, and private of depository institutions; (2) travelers checks of nonbank issuers; (3) demand nonfinancial sectors. Private debt consists of corporate bonds, mortgages, condeposits at all commercial banks other than those due to depository institutions, sumer credit (including bank loans), other bank loans, commercial paper, bankers the U.S. government, and foreign banks and official institutions, less cash items in acceptances, and other debt instruments. Data are derived from the Federal the process of collection and Federal Reserve float; and (4), other checkable Reserve Board's flow of funds accounts. Debt data are based on monthly deposits (OCDs), consisting of negotiable order of withdrawal (NOW) and averages. This sum is seasonally adjusted as a whole. automatic transfer service (ATS) accounts at depository institutions, credit union 3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of share draft accounts, and demand deposits at thrift institutions. Seasonally depository institutions. adjusted Ml is computed by summing currency, travelers checks, demand 4. Outstanding amount of U.S. dollar-denominated travelers checks of nondeposits, and OCDs, each seasonally adjusted separately. bank issuers. Travelers checks issued by depository institutions are included in M2: Ml plus (1) overnight (and continuing-contract) repurchase agreements demand deposits. (RPs) issued by all depository institutions and overnight Eurodollars issued to 5. Demand deposits at commercial banks and foreign-related institutions other U.S. residents by foreign branches of U.S. banks worldwide, (2) savings (includ- than those owed to depository institutions, the U.S. government, and foreign ing MMDAs) and small time deposits (time deposits—including retail RPs—in banks and official institutions, less cash items in the process of collection and amounts of less than $100,000), and (3) balances in both taxable and tax-exempt Federal Reserve float. general purpose and broker-dealer money market funds. Excludes individual 6. Consists of NOW and ATS account balances at all depository institutions, retirement accounts (IRAs) and Keogh balances at depository institutions and credit union share draft account balances, and demand deposits at thrift institumoney market funds. Also excludes all balances held by U.S. commercial banks, tions. money market funds (general purpose and broker-dealer), foreign governments 7. Sum of (1) overnight RPs and overnight Eurodollars, (2) money market fund and commercial banks, and the U.S. government. Seasonally adjusted M2 is balances (general purpose and broker-dealer), (3) MMDAs, and (4) savings and computed by adjusting its non-Mi component as a whole and then adding this small time deposits. result to seasonally adjusted Ml. 8. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U.S. M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of residents, and (4) money market fund balances (institution-only), less a consoli- $100,000 or more) issued by all depository institutions, (2) term Eurodollars held dation adjustment that represents the estimated amount of overnight RPs and by U.S. residents at foreign branches of U.S. banks worldwide and at ail banking Eurodollars held by institution-only money market funds. offices in the United Kingdom and Canada, and (3) balances in both taxable and 9. Small time deposits—including retail RPs—are those issued in amounts of tax-exempt, institution-only money market funds. Excludes amounts held by less than $100,000. All IRAs and Keogh accounts at commercial banks and thrift depository institutions, the U.S. government, money market funds, and foreign institutions are subtracted from small time deposits. banks and official institutions. Also excluded is the estimated amount of overnight 10. Large time deposits are those issued in amounts of $100,000 or more, RPs and Eurodollars held by institution-only money market funds. Seasonally excluding those booked at international banking facilities. adjusted M3 is computed by adjusting its non-M2 component as a whole and then 11. Large time deposits at commercial banks less those held by money market adding this result to seasonally adjusted M2. funds, depository institutions, and foreign banks and official institutions. L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term Treasury securities, commercial paper, and bankers acceptances, net of money Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic NonfinancialS tatistics • June 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 1993 BBaannkk ggrroouupp,, oorr ttyyppee ooff ccuussttoommeerr Aug. Sept. Oct.r Nov.r Dec. Jan. DEBITS TO Seasonally adjusted Demand deposits3 1 All insured banks 277,157.5 277,758.0 315,806.1 306,923.0 346,658.3 326,893.0 322,187.1 331,038.8 300,484.5 2 Major New York City banks 131,699.1 137,352.3 165,572.7 157,221.1 184,740.9 176,372.6 173,393.4 176,089.1 159,069.5 3 Other banks 145,458.4 140,405.7 150,233.5 149,702.0 161,917.4 150,520.4 148,793.7 154,949.8 141,415.0 4 Other checkable deposits4 3,349.0 3,645.5 3,788.1 3,763.9 3,942.1 3,700.5 3,610.0 3,683.9 3,311.3 5 Savings deposits including MMDAs5 3,483.3 3,266.1 3,331.3 3,139.8 3,559.1 3,468.2 3,497.2 3,407.3 3,054.9 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 797.8 803.5 832.4 800.0 892.4 818.9 796.1 830.5 748.1 7 Major New York City banks 3,819.8 4,270.8 4,797.9 4,550.9 5,254.5 4,855.5 4,624.0 4,693.3 4,151.2 8 Other banks 464.9 447.9 435.9 428.8 458.3 414.8 405.2 429.1 389.2 9 Other checkable deposits4 16.5 16.2 14.4 14.2 14.7 13.5 12.9 13.1 11.6 10 Savings deposits including MMDAs 6.2 5.3 4.7 4.4 4.9 4.7 4.7 4.6 4.1 DEBITS TO Not seasonally adjusted Demand deposits3 11 All insured banks 277,290.5 277,715.4 315,808.2 315,724.4 334,831.5 335,289.0 308,015.6 340,982.1 304,640.9 12 Major New York City banks 131,784.7 137,307.2 165,595.0 162,973.3 178,998.2 182,584.2 167,578.4 179,987.6 159,075.0 13 Other banks 145,505.8 140,408.3 150,213.3 152,751.0 155,833.4 152,704.8 140,437.2 160,994.5 145,565.9 14 Other checkable deposits4 3,346.7 3,645.6 3,788.1 3,696.9 3,945.7 3,689.7 3,351.3 3,849.3 3,616.8 15 Savings deposits including MMDAs 3,483.0 3,267.7 3,329.0 3,173.5 3,374.3 3,403.2 3,240.4 3,588.0 3,273.0 DEPOSIT TURNOVER Demand deposits3 16 All insured banks 798.2 803.4 832.5 836.5 864.2 839.2 754.3 815.2 739.7 17 Major New York City banks 3,825.9 4,274.3 4,803.5 4,870.2 5,180.1 5,025.6 4,494.4 4,418.1 3,933.2 18 Other banks 465.0 447.9 436.0 444.1 441.6 420.5 378.5 426.5 392.0 19 Other checkable deposits4 16.4 16.2 14.4 14.1 14.9 13.7 12.1 13.5 12.5 20 Savings deposits including MMDAs 6.2 5.3 4.7 4.4 4.6 4.6 4.4 4.8 4.4 1. Historical tables containing revised data for earlier periods can be obtained 2. Annual averages of monthly figures. from the Banking and Money Market Statistics Section, Division of Monetary 3. Represents accounts of individuals, partnerships, and corporations and of Affairs, Board of Governors of the Federal Reserve System, Washington, DC states and political subdivisions. 20551. 4. Accounts authorized for negotiable orders of withdrawal (NOWs) and Data in this table also appear on the Board's G.6 (406) monthly statistical accounts authorized for automatic transfer to demand deposits (ATSs). release. For ordering address, see inside front cover. 5. Money market deposit accounts. 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 1992 1993 IItteemm Apr. May June July Aug. Sept.r Oct.r Nov.r Dec.r Jan.r Feb. Mar. Seasonally adjusted 1 Total loans and securities1 2,874.3 2,875.3 2,882.8 2,886.9 2,902.2 2,918.2 2,930.2 2,937.4 2,943.7 2,939.8 2,944.5 2,958.0 7 U.S. government securities 590.8 600.2 610.7 619.2 632.6 640.8 648.7 653.4 659.8 659.9 670.5 685.1 3 Other securities 178.5 176.9 175.8 177.9 178.2 178.4 179.5 177.7 176.4 174.2 175.6 177.6 4 Total loans and leases 2,104.9 2,098.2 2,096.2 2,089.8 2,091.4 2,099.0 2,101.9 2,106.2 2,107.5 2,105.6 2,098.4 2,095.3 Commercial and industrial ..... 609.0 607.6 604.6 602.5 601.4 601.1 600.9 601.3 599.0 600.2 598.3 594.2 6 Bankers acceptances held ... 6.5 6.7 6.3 6.5 6.5 6.3 7.4 7.6 7.1 6.9 8.2 8.4 7 Other commercial and industrial 602.6 600.9 598.4 596.0 594.9 594.8 593.5 593.7 591.9 593.2 590.1 585.8 8 U.S. addressees3 593.2 590.8 588.3 585.3 584.3 583.5 582.4 582.4 580.8 581.9 578.6 573.9 9 Non-U.S. addressees3 9.4 10.1 10.1 10.7 10.6 11.3 11.1 11.3 11.1 11.4 11.5 11.9 10 Real estate 881.8 883.3 881.8 881.5 883.1 887.1 892.3 893.9 893.9 890.4 888.6 888.9 11 Individual 360.8 359.2 359.0 358.6 357.4 357.1 356.1 355.7 355.7 358.2 360.2 360.7 12 Security 63.4 60.9 63.3 60.5 61.6 64.0 64.7 64.3 65.0 63.2 61.9 62.8 13 Nonbank financial institutions 43.2 43.3 42.4 41.5 42.0 44.1 44.2 45.1 44.1 45.5 45.3 45.0 14 Agricultural 34.3 34.3 34.6 34.9 35.3 35.2 35.1 35.1 34.8 34.4 34.3 34.2 15 State and political subdivisions 27.6 27.3 26.8 26.2 25.9 25.8 25.4 25.2 24.8 24.3 23.7 2233..55 16 Foreign banks 6.7 7.0 7.5 7.7 7.2 7.9 7.3 7.0 7.0 6.9 7.7 7.3 17 Foreign official institutions 2.0 2.0 2.0 2.2 2.3 2.5 2.4 2.8 2.9 2.9 3.1 3.0 18 Lease-financing receivables .... 31.1 30.9 31.0 30.8 30.8 31.0 30.7 30.6 30.6 30.0 29.9 29.9 19 All other loans 45.1 42.4 43.3 43.2 44.3 43.1 42.8 45.3 49.9 49.7 n.a. n.a. Not seasonally adjusted 20 Total loans and securities1 2,875.8 2,870.7 2,882.9 2,876.1 2,894.5 2,915.7 2,929.4 2,944.0 2,953.5 2,941.9 2,947.4 2,961.8 21 U.S. government securities 592.6 599.4 608.9 615.3 631.3 638.9 646.5 656.1 658.5 660.3 674.1 690.9 7? Other securities 178.0 176.5 175.4 176.8 178.1 178.1 179.8 178.8 176.6 174.8 175.8 177.3 73 Total loans and leases 2,105.2 2,094.8 2,098.7 2,084.0 2,085.0 2,098.7 2,103.0 2,109.1 2,118.4 2,106.7 2,097.5 2,093.7 74 Commercial and industrial ..... 612.1 609.4 606.5 601.5 597.6 597.5 598.5 601.5 602.0 598.6 597.5 597.4 25 Bankers acceptances held ... 6.3 6.6 6.2 6.3 6.3 6.2 7.2 7.8 7.4 7.1 8.5 8.5 7,6 Other commercial and industrial 605.8 602.7 600.3 595.2 591.4 591.3 591.3 593.7 594.6 591.5 588.9 588.9 77 U.S. addressees3 596.3 592.7 589.5 584.2 580.5 580.2 580.5 583.0 583.6 580.2 577.4 577.2 78 Non-U.S. addressees3 9.5 10.0 10.8 11.0 10.8 11.1 10.8 10.7 11.0 11.3 11.6 11.8 79 Real estate 880.7 883.4 882.0 881.6 883.7 887.9 893.0 895.4 895.2 890.2 886.8 886.3 30 Individual 358.1 357.4 357.2 356.4 356.9 358.7 356.5 356.5 360.1 362.3 360.2 358.2 31 Security 66.9 58.4 63.5 58.0 59.4 62.5 64.2 63.6 65.7 64.7 64.9 64.8 3? Nonbank financial institutions 42.6 42.8 42.9 41.3 41.8 43.6 43.8 45.4 46.1 45.7 45.2 44.6 33 Agricultural 33.5 34.0 35.1 35.8 36.5 36.6 36.0 35.1 34.6 33.6 33.0 32.9 34 State and political subdivisions 27.6 27.3 26.8 26.1 25.9 25.9 25.5 25.2 24.8 24.1 2233..66 2233..55 35 Foreign banks 6.4 6.8 7.3 7.8 7.0 8.0 7.6 7.3 7.4 6.9 7.5 7.0 36 Foreign official institutions 2.0 2.0 2.0 2.2 2.3 2.5 2.4 2.8 2.9 2.9 3.1 3.0 37 Lease-financing receivables .... 31.2 30.9 31.0 30.6 30.6 30.8 30.6 30.5 30.5 30.3 30.2 30.1 38 All other loans 44.1 42.5 44.4 42.6 43.2 44.5 44.6 45.7 49.1 47.5 n.a. n.a. 1. Adjusted to exclude loans to commercial banks in the United States. 3. United States includes the fifty states and the District of Columbia. 2. Includes nonfinancial commercial paper held. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 DomesticN onfinancial Statistics • June 1993 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Billions of dollars, monthly averages 1992 1993 SSoouurrccee ooff ffuunnddss Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Seasonally adjusted 11 TToottaall nnoonnddeeppoossiitt ffuunnddss22 —— 291.9 292.4 295.9 297.0 302.4 309.4r 304.91 309. lr 312.9 312.9r 312.3 323.9 22 NNeett bbaallaanncceess dduuee ttoo rreellaatteedd ffoorreeiiggnn ooffffiicceess ...... 50.9 53.7 61.2 61.7 61.4 64.0 63.8r 67.9" 71.1 74. r 73.3 80.0 33 BBoorrrroowwiinnggss ffrroomm ootthheerr tthhaann ccoommmmeerrcciiaall bbaannkkss iinn UUnniitteedd SSttaatteess44 241.0 238.7 234.7 235.3 241.1 245.4r 241.1 241.2 241.8r 238.8 239.0 243.9 44 DDoommeessttiiccaallllyy cchhaarrtteerreedd bbaannkkss 154.6 151.8 147.6 147.2 151.5 153.4 154.5 153.7 154.3 155.1 156.1 161.1 55 FFoorreeiiggnn--rreellaatteedd bbaannkkss 86.5 86.9 87.2 88.1 89.6 92. lr 86.6 87.5 87.4 83.7 82.9 82.8 Not seasonally adjusted 6 Total nondeposit funds 288.4 297.1 295.2 291.5 297.5 304.0" 307.2r 314.3r 312.7 311.8 316.6 328.8 7 Net balances due to related foreign offices ... 47.9 55.9 59.2 58.4 57.6 61.6 65.0" 69.6r 75.2 76.7 75.1 80.7 8 Domestically chartered banks -4.6 -4.5 -6.3 -7.0 -9.3 -11.0 -13.4r -12.6r -15.1 -15.9 -10.6 -7.0 9 Foreign-related banks 52.6 60.4 65.6 65.4 66.9 72.6 78.3r 82. lr 90.3 92.6 85.7 87.8 10 Borrowings from other than commercial banks in United States 240.5 241.2 236.0 233.1 239.9 242.3r 242.3 244.8 237.5 235.1 241.5 248.0 11 Domestically chartered banks 152.7 153.3 147.4 144.1 150.4 152.2 155.7 158.1 153.4 152.1 157.8 164.0 12 Federal funds and security RP borrowings 149.2 149.4 143.3 139.9 146.5 148.4 152.1 154.0 149.4 148.4 154.5 n.a. 13 Other6 3.4 3.9 4.1 4.2 3.9 3.8 3.6 4.1 4.0 3.6 3.2 n.a. 14 Foreign-related banks6 87.8 87.9 88.6 89.0 89.5 90. r 86.6 86.6 84.1 83.0 83.7 84.0 MEMO Gross large time deposits 15 Seasonally adjusted 401.5 397.5 393.3 387.7 385.8 383.2 375.7 371.3 366.6 359.9" 358.4 355.7 16 Not seasonally adjusted 400.5 399.4 394.9 387.4 387.1 383.6 374.9 371.1 365.5 358.01 358.0 356.6 U.S. Treasury demand balances at commercial banks 17 Seasonally adjusted 20.8 19.2 24.7 23.1 28.0 24.1 21.5 20.7 20.4 25.6 23.6 18.8 18 Not seasonally adjusted 17.7 21.0 25.2 19.6 22.4 28.6 21.9 16.5 19.5 33.lr 29.5 17.3 1. Commercial banks are nationally and state-chartered banks in the fifty states borrowings from Federal Reserve Banks and from foreign banks, term federal and the District of Columbia, agencies and branches of foreign banks, New York funds, loan RPs, and sales of participations in pooled loans. investment companies majority owned by foreign banks, and Edge Act corpora- 5. Figures are based on averages of daily data reported weekly by approxitions owned by domestically chartered and foreign banks. 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). 4. Borrowings through any instrument, such as a promissory note or due bill, given for the purpose of borrowing money for the banking business. This includes 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 1993 Account Feb. 3 Feb. 10 Feb. 17 Feb. 24 Mar. 3 Mar. 10 Mar. 24 ALL COMMERCIAL BANKING INSTITUTIONS2 Assets 3,118,497 3,101,583 3,107,865 3,085,402 3,132,722 3,120,772 3,131,520 3,101,833 1 Loans and securities 809,779 807,871 808,337 813,306 820,520 824,462 828,667 830,804 2 Investment securities 648,632 646,996 646,885 651,254 657,933 661,035 666,417 667,899 3 U.S. government securities 161,147 160,875 161,452 162,052 162,587 163,428 162,250 162,905 4 Other 38,214 37,268 40,623 37,014 39,280 39,929 41,232 37,743 5 Trading account assets 24,484 23,426 25,915 22,989 24,254 25,886 26,785 23,408 6 U.S. government securities 2,359 2,747 2,617 2,217 2,109 2,199 2,284 2,427 7 Other securities ." 11,372 11,095 12,091 11,808 12,917 11,843 12,162 11,908 8 Other trading account assets 2,270,504 2,256,444 2,258,906 2,235,082 2,272,922 2,256,381 2,261,622 2,233,286 9 Total loans 165,927 157,585 162,766 145,781 169,158 162,802 160,438 145,064 10 Interbank loans 2,104,577 2,098,860 2,096,139 2,089,302 2,103,764 2,093,579 2,101,184 2,088,223 11 Loans excluding interbank 601,125 596,882 597,554 595,478 599,000 596,470 599,488 5%,290 12 Commercial and industrial 887,582 888,769 886,139 884,179 887,717 888,194 885,691 884,738 13 Real estate 73,081 73,066 73,064 73,060 73,516 73,472 73,473 73,473 14 Revolving home equity 814,501 815,703 813,074 811,119 814,201 814,722 812,218 811,265 15 Other 361,281 360,843 360,069 359,614 358,413 357,595 358,081 357,791 16 Individual 254,588 252,367 252,378 250,031 258,635 251,320 257,925 249,404 17 All other 210,622 195,806 227,314 199,105 210,519 195,068 199,599 197,328 18 Total cash assets 32,591 23,825 28,745 27,888 28,655 24,017 21,818 27,982 19 Balances with Federal Reserve Banks 29,340 30,913 32,630 32,474 29,708 30,973 30,940 31,483 20 Cash in vault 29,694 27,810 33,517 28,746 30,533 28,282 29,443 28,633 21 Demand balances at U.S. depository institutions 78,029 71,524 91,596 69,239 81,013 70,767 75,241 68,500 22 Cash items 40,366 41,307 40,232 40,292 40,032 40,452 41,580 40,730 23 Other cash assets 289,163 287,081 282,083 281,425 290,299 287,240 280,677 283,052 24 Other assets 25 Total assets 3,618,283 3,584,470 3,617,262 3,565,933 3,633,540 3,603,079 3,611,796 3,582,213 Liabilities 26 Total deposits 2,490,711 2,478,784 2,503,772 2,462,605 2,503,169 2,482,906 2,482,159 2,462,845 27 Transaction accounts 745,285 731,402 758,882 718,645 754,761 734,576 739,186 725,248 2 2 3 3 3 3 3 3 3 3 8 9 0 1 2 7 3 4 5 6 O Bo t T T O S S h r m a e r i r t m O D D r h e v o a a i w e e e e t l l n r s l h i m m i a u g d e n t b s a a r r i e g y i m n n p s l d d i d d o e e t t e , , i a s p m e d i x o s d U t e a s s e a p . n i p S n o t o d s o . d v s s i e a g ( i t l r e n s t o o o x d v a $ r c n e 1 y l a r 0 u l n n l 0 d i o n m , c i 0 t s n h e e 0 t g e s i n 0 t c t c u k h t a i e o b c n l k e s a d b e le p ) osits 7 6 7 4 3 3 5 4 3 3 4 0 7 3 1 6 5 6 9 0 1 5 4 6 2 3 , , , , , , , , , , 3 5 3 2 8 3 2 8 1 5 7 9 5 1 7 9 1 2 9 0 2 5 3 6 9 2 4 2 0 0 7 6 6 4 4 3 3 4 3 3 9 6 9 3 6 3 9 4 6 4 2 1 3 1 5 3 , , , , , , , , , , 5 4 8 4 0 8 7 5 0 2 9 9 0 8 5 5 1 9 9 5 1 2 1 9 7 8 9 2 9 9 7 6 4 7 3 5 3 4 8 3 1 2 6 5 3 0 5 3 3 0 1 0 1 3 2 4 , , , , , , , , , , 1 1 1 3 4 2 4 7 4 8 1 3 5 2 3 4 4 8 4 6 5 1 9 6 3 8 0 2 9 4 6 6 4 4 7 3 3 7 3 7 8 3 4 6 3 1 8 3 1 7 6 6 4 8 3 6 , , , , , , , , , , 5 1 0 2 4 0 6 5 4 0 8 5 0 2 1 4 7 9 5 4 1 9 3 4 9 5 2 8 4 8 6 4 7 7 3 5 3 3 9 3 5 1 0 6 4 6 9 8 0 2 5 1 5 3 5 , , , , , , , , , , 7 0 8 8 5 4 6 6 3 6 2 3 6 1 0 5 5 2 8 3 3 3 7 4 6 0 2 2 8 6 6 7 6 4 4 3 3 8 9 5 3 9 3 4 5 7 5 4 5 5 5 4 2 8 8 , , , , , , , , , , 5 9 1 2 5 6 8 9 0 9 1 8 5 3 4 2 6 6 3 4 1 7 7 3 3 3 9 7 2 0 6 7 6 4 3 5 3 3 5 9 8 3 2 0 5 4 3 2 8 6 1 8 7 2 7 2 , , , , , , , , , , 4 1 3 2 0 2 0 2 6 8 2 9 8 7 7 9 2 5 9 8 7 4 2 6 3 7 6 4 0 4 6 6 4 7 4 3 3 3 8 7 3 4 9 4 5 1 1 5 6 6 9 2 7 5 3 5 , , , , , , , , , , 9 3 9 9 6 3 7 7 2 8 1 7 1 1 5 4 6 6 5 1 5 8 7 8 2 8 6 4 2 4 38 Total liabilities 3,343,320 3,308,500 3,341,083 3,288,130 3,354,241 3,323,317 3,332,176 3,302,959 39 Residual (assets less liabilities)3 274,963 275,970 276,180 277,802 279,298 279,762 279,620 279,254 Footnotes appear on the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • June 1993 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKS1 Wednesday figures—Continued Miftk>ns of dollars 1993 Account Feb. 3 Feb. 10 Feb. 17 Feb. 24 Mar. 3 Mar. 10 Mar. 17 Mar. 24 Mar. 31 DOMESTICALLY CHARTERED COMMERCIAL BANKS4 Assets 40 Loans and securities 2,760,488 2,745,746 2,751,436 2,733,909 2,770,088 2,760,187 2,769,015 2,745,135 2,762,833 41 Investment securities 743,685 743,335 741,316 745,544 751,900 754,262 756,955 760,059 762,295 42 U.S. government securities 604,437 604,389 601,850 605,669 611,858 613,870 617,447 619,836 621,494 43 Other 139,248 138,946 139,466 139,875 140,042 140,392 139,508 140,224 140,801 44 Trading account assets 38,214 37,268 40,623 37,014 39,280 39,929 41,232 37,743 37,326 45 U.S. government securities 24,484 23,426 25,915 22,989 24,254 25,886 26,785 23,408 22,823 46 Other securities 2,359 2,747 2,617 2,217 2,109 2,199 2,284 2,427 2,768 47 Other trading account assets 11,372 11,095 12,091 11,808 12,917 11,843 12,162 11,908 11,735 4S Total loans 1,978,590 1,965,143 1,969,497 1,951,351 1,978,908 1,965,9% 1,970,829 1,947,333 1,963,212 49 Interbank loans 144,615 134,598 139,173 126,340 143,398 135,272 137,059 123,833 136,765 56 Loans excluding interbank 1,833,975 1,830,545 1,830,324 1,825,011 1,835,511 1,830,725 1,833,769 1,823,500 1,826,446 51 Commercial and industrial 437,982 435,871 436,827 436,084 438,750 437,510 438,952 436,722 439,124 52 Real estate 835,517 836,707 834,275 832,704 836,523 837,252 834,378 833,614 835,440 53 Revolving home equity 73,081 73,066 73,064 73,060 73,516 73,472 73,473 73.473 73,602 54 Other 762,436 763,641 761,210 759,644 763,007 763,780 760,905 760,141 761,838 55 Individual 361,281 360,843 360,069 359,614 358,413 357,595 358,081 357,791 358,951 56 All other 199,194 197,124 199,153 196,610 201,825 198,369 202,358 195,373 192,932 57 Total cash assets 184,063 168,451 201,564 172,647 182,687 168,152 171,611 169,815 182,901 58 Balances with Federal Reserve Banks 31,768 23,330 27,962 27,409 27,784 23,516 20,885 27.474 29,232 59 Cash in vawlt 29,307 30,880 32,592 32,440 29,675 30,940 30,907 31,449 31,576 68 Demand balances at U.S. depository institutions 28,074 26,277 31,865 27,094 29,007 26,800 27,928 27,045 26,606 61 Cash items 76,086 68,711 89,311 66,781 78,875 68,466 73,073 66,095 78,439 62 Other cash assets 18,226 18,827 19,240 18,457 16,769 17,854 18,241 17,753 17,048 63 Other assets 177,133 177,954 175,277 171,332 175,935 173,380 171,004 171,465 181,4% 64 Total assets 3,121,685 3,092,151 3,128,276 3,077,888 3,128,711 3,101,718 3,111,629 3,086,415 3,127,230 Liabilities 65 Total deposits 2,333,422 2,321,559 2,349,717 2,303,891 2,346,905 2,329,044 2,329,157 2,309,667 2,334,274 66 Transaction accounts 734,352 720,103 749,024 708,348 744,186 724,536 728,806 715,134 745,441 67 Demand, U.S. government 4,190 3,091 3,481 3,645 3,387 2,967 2,884 3,251 3,881 68 Demand, depository institutions 36,780 34,115 42,856 34,091 36,365 33,288 35,467 34,361 32,925 69 Other demand and all checkable deposits 693,382 682,8% 702,687 670,612 704,434 688,281 690,455 677,522 708,635 70 Savings deposits (excluding checkable) 740,868 744,965 745,783 741,5% 746,140 749,571 747,786 745,474 746,990 71 Small time deposits 634,106 632,446 631,003 630,742 633,617 632,847 631,144 629,574 628,735 72 Time deposits over $100,000 224,097 224,046 223,907 223,205 222,%3 222,091 221,421 219,485 213,108 73 Borrowings 385,627 367,429 376,339 366,667 369,026 358,299 370,290 365,526 368,998 74 Treasury tax and loan notes 36,822 31,599 21,749 16,048 5,636 8,032 21,073 15,814 14,856 75 Other 348,805 335,830 354,590 350,619 363,390 350,267 349,217 349,712 354,142 76 Other liabilities 131,282 130,800 129,649 133,135 137,089 138,222 136,169 135,576 145,919 77 Total liabilities 2,850,331 2,819,789 2,855,705 2,803,694 2,853,021 2,825,565 2,835,617 2,810,769 2,849,191 78 Residual (assets less liabilities)3 271,354 272,362 272,571 274,194 275,690 276,154 276,012 275,646 278,040 1. Excludes assets and liabilities of International Banking Facilities. 3. This balancing item is not intended as a measure of equity capital for use in 2. Includes insured domestically chartered commercial banks, agencies and capital adequacy analysis. branches of foreign banks, Edge Act and Agreement corporations, and New York 4. Includes all member banks and insured nonmember banks. Loans and State foreign investment corporations. Data are estimates for the last Wednesday securities data are estimates for the last Wednesday of the month based on a of the month based on a sample of weekly reporting foreign-related and domestic sample of weekly reporting banks and quarter-end condition reports. institutions and quarter-end condition reports. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Commercial Banks All 1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS Millions of dollars, Wednesday figures 1993 Account Feb. 3 Feb. 10 Feb. 17 Feb. 24 Mar. 3 Mar. 10 Mar. 17 ASSETS 2 4 3 5 1 U Ca . T I S s n . h r v M a T a e d o r s n i e t n r d m a g t g s b e a u a a n c g r l t y c e a o - a n a b u c c n a c n e d c s o t k u g d e n o u d t v e e s f e r r c n o u m m r e it d n i t e e p s s 1 o e s c i u to ri r t y i es i nstitutions 2 2 1 7 5 2 7 0 6 1 4 8 8 . . , . . 2 2 9 2 7 7 5 7 0 4 8 4 , . , , , 4 9 5 6 4 1 6 0 5 6 1 7 4 9 3 2 2 1 2 7 7 5 2 3 7 4 8 0 , , , , , 1 0 1 8 5 8 7 0 9 4 1 1 9 7 0 2 2 1 2 7 8 5 0 0 5 0 5 0 , , , , , 6 5 1 6 8 5 5 0 6 3 7 1 6 2 4 2 2 1 2 8 8 5 0 1 1 1 9 5 , , , , , 9 6 1 7 0 6 3 9 3 8 4 2 4 2 0 2 2 % 2 8 8 5 3 1 2 9 , , , , , 3 3 5 0 5 5 8 4 5 2 7 1 1 5 6 2 2 9 2 8 8 6 3 8 3 5 2 , , , , , 1 4 8 % % 4 3 3 7 2 7 2 0 2 2 9 2 8 6 8 0 3 8 4 4 , , , , , 5 2 8 9 7 2 1 1 3 3 1 5 3 6 6 All others, by maturity 1 1 1 1 1 1 1 6 7 9 6 8 1 2 4 5 0 3 O O t t T I h h n e r e r O v S a r e d t t t s a s O M O M O h i r e n t t a e e c n m n n g o o r d u e e e r r i a e r a e b e n n n y y y i c g o t t d e e e t t c i n h h a a a e o a a p d r r r s a a u c c o n n s c c n t o o , l o h o t r r i o f t c u r u i n i o v l l o n c n e e e e r u a t t s s p l s s g y y a o h e s e s r a u a s a f r b e r i t v s e t d s e i s v y t i o e si a c o k r n s s s , , a b n y d m se a c tu u r r i i t t y i es . 7 3 6 5 5 2 3 1 1 6 6 3 3 3 5 0 1 6 2 3 . , . . . . . , ; : : 3 7 6 5 5 2 3 1 1 3 3 6 5 3 0 5 2 3 0 6 . , , , , , , , , , , 5 2 8 8 3 7 3 2 1 8 9 0 4 5 5 6 4 8 2 3 6 6 5 3 7 2 2 5 6 7 5 2 6 5 3 7 6 5 2 3 1 1 4 6 0 3 3 6 5 2 3 1 6 , , , , , , , , , , , 0 6 1 8 0 0 0 4 2 8 8 3 9 3 9 7 4 0 5 5 3 8 2 8 5 8 4 2 9 9 0 9 4 7 6 5 5 2 3 3 1 1 4 2 5 0 5 7 4 3 1 6 1 , , , , , , , , , , , 1 0 3 9 1 0 0 4 5 7 7 4 7 2 0 2 9 5 6 1 1 0 1 1 6 8 4 2 7 7 8 6 6 7 3 6 5 3 5 1 1 1 7 7 4 4 3 3 6 2 6 9 1 , , , , , , , , , , , 8 3 4 4 3 3 1 6 7 6 9 2 8 5 2 3 5 9 5 7 0 8 7 1 5 3 7 8 9 4 7 4 6 2 3 7 6 5 3 5 1 1 0 4 4 7 4 6 6 3 6 1 1 , , , , , , , , , , , 0 7 7 2 8 6 1 6 3 5 8 0 8 7 3 4 2 4 8 7 5 6 9 7 8 1 0 4 7 6 8 0 0 7 3 6 5 5 3 1 1 1 6 4 4 8 5 4 3 9 6 1 1 , , , , , , , , , , , 5 0 2 6 0 9 3 9 6 9 9 1 3 1 5 4 4 6 2 8 1 1 1 1 3 9 5 4 1 5 6 3 0 3 7 6 5 5 3 1 1 1 8 4 4 7 2 6 4 3 9 1 6 , , , , , , , , , , , 8 4 5 5 5 0 0 9 3 6 6 9 7 9 1 5 0 6 5 6 5 3 4 5 5 1 6 6 9 2 3 6 2 3 2 2 2 2 2 2 2 2 3 2 2 3 1 1 1 1 0 1 2 4 5 6 7 9 0 3 8 2 8 7 9 O Fe t T C T T R T T h d o o o o o e e o e A r A C B R r a m o i c n a l f l l a o n e l t l o l i m l N o U o n n m v h e d m n o a o a f s o o k e . e i m u b n t n S t t v m r l r n e h h a c v s . n a i c s r e - d i t e e e 3 i n i s d a r U e a r a n r a r u k l s c d n l c a g . a l i S d i , d s c o i a l b a a s n . o c l a r n h r l l s l e e n f o a d e b d o t p b o s s k a i d 2 m a r s t t a i s e d n e u a n e n e r p e r k t n d s k s s e i e s e , u c o s r s q a e s n s i g s n s t u i n s o e n r r d i n e o i a t t a s t y a s h n d l h s l e d e e e a U c x l U o e n p n r m i e s i t n t m e e d d d e i r t S u S c t i r t a a a e t l s t e e s s p aper .. 9 2 2 2 3 3 1 8 6 7 7 7 8 2 4 5 9 3 8 1 2 6 9 3 2 8 1 4 5 8 5 5 2 5 3 1 1 . . , . . , . . , 9 2 2 2 3 3 1 8 5 2 4 7 7 7 7 3 9 5 8 1 0 1 2 3 3 6 2 3 4 9 8 6 3 2 4 2 1 , , , , , , , , , , , , , , , , , 1 8 7 4 8 0 2 9 0 1 7 6 8 1 6 8 7 2 7 0 3 5 3 8 8 1 3 9 1 0 9 5 9 7 4 5 7 1 1 2 7 3 2 1 3 5 0 2 6 9 2 9 2 2 2 3 3 1 8 5 2 4 7 8 3 9 5 7 7 1 8 1 2 7 3 4 8 7 4 3 5 3 5 3 2 3 1 4 , , , , , , , , , , , , , , , , , 6 9 1 4 2 1 1 3 1 9 8 1 0 9 4 3 7 3 3 1 2 2 7 5 9 9 4 8 2 3 9 3 9 4 7 6 3 7 7 9 7 9 6 6 6 8 0 9 8 0 9 9 2 2 2 3 3 1 4 7 7 4 2 3 7 9 7 7 5 8 1 3 3 4 3 8 3 5 2 4 2 2 6 3 1 3 1 2 , , , , , , , , , , , , , , , , , 3 1 4 1 6 6 7 2 4 3 6 8 8 7 4 5 4 6 4 7 % 9 0 8 2 7 0 2 4 4 % 7 8 2 1 5 6 7 3 1 9 7 7 2 5 5 0 9 2 9 2 2 2 3 3 1 8 8 6 2 4 7 9 7 7 3 5 8 1 1 4 0 4 3 9 4 7 6 9 4 3 2 3 3 2 1 , , , , , , , , , , , , , , , , , 5 7 3 4 3 4 4 8 6 9 1 1 9 4 3 7 6 7 9 4 9 9 4 6 8 2 7 8 5 2 9 1 0 1 1 7 2 1 1 3 5 1 6 8 0 3 4 0 4 6 9 9 2 2 2 3 3 1 7 2 7 9 7 7 8 5 4 3 5 1 8 6 4 5 8 4 2 2 3 7 2 0 3 4 3 2 3 1 , , , , , , , , , , , , , , , , , 9 1 0 0 0 9 2 6 3 6 9 9 2 4 4 2 6 4 5 6 2 3 2 3 5 9 3 7 9 1 6 8 1 3 8 1 9 5 5 5 1 2 6 3 8 6 6 9 8 0 0 9 2 2 2 3 3 1 7 7 8 5 2 4 3 7 7 5 9 8 1 9 3 6 4 5 4 3 4 3 2 5 8 1 5 3 1 2 , , , , , , , , , , , , , , , , , 6 1 7 2 8 4 3 5 0 5 7 1 4 6 5 5 8 4 4 3 8 4 7 6 5 5 0 3 7 3 3 7 7 6 1 0 5 6 7 7 3 9 4 4 4 2 8 6 7 6 0 9 2 2 3 2 3 1 7 7 4 2 9 7 7 4 3 5 7 8 1 0 5 7 4 4 4 3 5 1 3 0 3 2 2 3 2 1 , , , , , , , , , , , , , , , , , 3 6 9 3 1 4 4 1 8 6 7 3 1 4 6 5 8 2 6 5 5 0 6 5 6 6 3 5 3 8 0 7 5 2 5 1 1 7 0 3 8 0 3 8 2 2 2 0 0 0 2 3 3 3 3 3 3 5 6 4 7 T T F o o o N B r s f a o p i t n n n a u a t k b r n e s c a s c h n e in a a k n s a f d i g o f n i r r n g p i e a c o i a n u l g n c i l n t i t d a i u c l c r a c o a l a i u l n r s n r s p u t t y r r b i i o t i n d u e d g s i t u v i s o c i e s t n i i c s o o u n n r s i ties 2 1 1 0 5 5 4 1 . . 1 1 1 5 9 6 4 1 , , , , , 4 6 0 2 3 8 6 2 9 9 5 2 3 9 4 1 1 1 5 4 9 5 1 , , , , , 5 2 4 1 5 1 2 4 9 5 3 9 9 9 6 1 1 1 5 8 4 7 1 , , , , , 5 4 2 1 4 2 6 5 6 8 2 2 8 0 6 1 1 1 5 4 9 6 1 , , , , , 5 2 0 0 7 0 2 6 4 1 2 1 0 2 6 1 1 1 5 5 8 4 1 , , , , , 5 7 1 6 5 0 8 8 5 0 0 4 6 5 6 1 1 1 5 4 8 8 1 , , , , , 5 1 1 5 4 6 7 3 5 6 8 7 5 7 3 1 1 1 5 4 8 5 1 , , , , , 5 1 0 7 4 4 4 4 0 0 5 1 1 4 3 4 4 4 4 4 3 3 1 3 0 2 4 9 8 O O LE t t A L T h h S e o e e S ll r r a : f o s l a L o U e o t s r h - o n a s e f a e n e e i i r n n g s a t s n a r l a a o n n g n n a e c d d o d n i v n s l l g e 4 i e e n r a a r n c s s e o e m e c m s e e r , e i n e v n s t a s e e b t r a l v e n e s d ^ official institutions 9 1 2 2 3 4 6 3 4 6 3 3 2, 9 1 2 2 3 4 6 2 6 4 2 1 4 , , , , , , 8 8 2 4 0 6 4 6 6 1 1 3 5 7 6 8 2 0 9 1 2 2 3 4 6 6 4 4 2 2 0 , , , , , , 7 6 8 2 9 0 7 8 8 4 4 3 1 5 0 5 7 4 9 1 2 2 3 3 5 4 6 2 2 5 8 , , , , , , 6 7 9 2 4 5 3 5 3 5 6 % 2 6 9 3 6 9 1 2 3 4 2 6 4 7 2 4 2 0 , , , , , , 6 0 1 0 2 9 5 2 1 4 0 5 8 1 9 7 3 4 9 1 2 3 2 3 5 4 2 7 2 7 9 , , , , , , 8 5 0 6 2 2 2 3 3 9 1 1 1 2 8 7 3 2 9 1 2 4 2 3 5 4 2 0 4 7 7 , , , , , , 4 4 0 5 2 3 7 2 1 1 0 0 5 7 2 6 0 1 9 1 2 3 3 2 5 6 4 1 2 2 7 , , , , , , 5 8 3 1 8 9 2 8 1 8 3 0 5 6 5 9 5 1 45 Total assets 1,648,482 1,623,327 1,652,536 1,613,441 1,648,253 1,624,997 1,636,069 1,617,320 Footnotes appear on the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 DomesticN onfinancialS tatistics • June 1993 1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS—Continued Millions of dollars, Wednesday figures 1993 AAccccoouunntt Feb. 3 Feb. 10 Feb. 17 Feb. 24 Mar. 3 Mar. 10 Mar. 17 Mar. 24 Mar. 31 LIABILITIES 46 Deposits 1,108,340 1,103,346 1,124,498 1,091,103 1,115,967 1,102,419 1,105,643 1,091,549 1,102,516 47 Demand deposits 261,092 256,903 278,322 252,959 266,306 255,039 261,756 254,274 268,492 48 Individuals, partnerships, and corporations 209,951 206,151 221,986 204,906 216,753 209,670 212,914 205,350 221,484 49 Other holders 51,141 50,752 56,335 48,053 49,553 45,369 48,841 48,923 47,008 50 States and political subdivisions 9,728 8,859 9,363 8,936 8,847 8,576 8,759 8,805 8,899 51 U.S. government 2,824 1,945 2,073 2,388 2,094 1,835 1,694 2,138 2,346 52 Depository institutions in the United States 22,325 20,839 26,678 21,349 22,182 20,511 21,394 20,727 20,469 53 Banks in foreign countries 5,377 5,555 6,832 5,243 5,811 4,742 5,715 6,014 5,117 54 Foreign governments and official institutions 564 618 524 664 556 858 739 810 712 55 Certified and officers' checks 10,322 12,936 10,866 9,473 10,062 8,847 10,540 10,429 9,466 56 Transaction balances other than demand deposits .... 119,209 116,551 116,588 114,646 121,220 118,168 117,506 116,245 119,189 57 Nontransaction balances 728,038 729,891 729,588 723,499 728,441 729,212 726,381 721,031 714,834 58 Individuals, partnerships, and corporations 702,726 703,725 703,387 697,665 702,566 703,585 701,163 695,980 692,326 59 Other holders 25,312 26,166 26,201 25,833 25,875 25,627 25,218 25,051 22,508 60 States and political subdivisions 20,827 21,440 21,502 21,422 21,415 21,067 20,694 20,475 20,127 61 U.S. government 2,070 2,152 2,129 2,051 2,040 2,026 2,026 2,082 487 62 Depository institutions in the United States 2,086 2,243 2,241 2,030 2,088 2,203 2,158 2,152 1,558 63 Foreign governments, official institutions, and banks .... 329 332 328 330 332 332 340 342 336 64 Liabilities for borrowed money5 298,280 277,765 285,886 277,617 283,744 272,951 282,539 278,614 280,917 65 Borrowings from Federal Reserve Banks 65 0 0 0 35 0 860 0 707 66 Treasury tax and loan notes 31,935 27,029 18,102 12,932 4,476 6,461 17,791 12,658 11,624 67 Other liabilities for borrowed money 266,280 250,735 267,784 264,685 279,232 266,490 263,888 265,956 268,586 68 Other liabilities (including subordinated notes and debentures) 100,977 100,426 99,531 102,576 105,888 106,760 104,926 103,508 112,434 69 Total liabOities 1,507,596 1,481,536 1,509,914 1,471,295 1,505,599 1,482,130 1,493,109 1,473,671 1,495,867 70 Residual (total assets less total liabilities)7 140,886 141,791 142,623 142,145 142,654 142,867 142,961 143,649 145,067 MEMO 71 Total loans and leases, gross, adjusted, plus securities .. 1,340,416 1,335,624 1,340,392 1,331,801 1,348,568 1,344,197 1,349,907 1,339,343 1,337,946 72 Time deposits in amounts of $100,000 or more 115,165 114,902 114,874 113,962 113,729 112,598 111,983 110,167 104,124 73 Loans sold outright to affiliates 916 922 910 909 898 897 8% 893 869 74 Commercial and industrial 452 452 452 452 453 452 451 449 447 75 Other ., 464 470 458 458 446 445 445 444 422 76 Foreign branch credit extended to U.S. residents 24,324 23,892 23,807 23,756 23,407 23,846 23,850 23,150 23,225 77 Net due to related institutions abroad -12,273 -14,758 -13,611 -10,277 -8,870 -10,560 -8,945 -10,070 -12,388 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 1993 Account Feb. 3 Feb. 10 Feb. 17 Feb. 24 Mar. 3 Mar. 10 Mar. 17 Mar. 24 Mar. 31 1 Cash and balances due from depository institutions 17,543 18,122 17,055 17,493 18,488 17,941 18,588 18,277 19,477 2 U.S. Treasury and government agency securities 27,157 26,206 27,803 28,054 28,414 29,245 30,199 29,671 31,416 6 3 4 5 7 8 O O Fe t t T C T h d h e o o e e o r r r m c o a l s o l t m o e h m f a c e e u n m u r r n s c r s e d i i 2 r a a t s c i l n e i s d a s a o l . n l l d b d e a a i n s n e k d s s u , i s n g t r r t o i h a s e l s United States .. 1 9 2 1 6 8 8 4 3 3 8 , , , , , , 2 9 7 3 5 6 4 1 0 6 4 5 6 6 6 0 6 4 1 9 2 6 1 7 8 5 2 3 7 , , , , , , 2 7 2 5 6 2 5 5 6 1 8 5 9 4 4 4 4 0 1 2 9 6 1 8 7 0 5 4 4 , , , , , , 3 7 1 3 6 7 0 4 7 9 4 7 7 7 1 4 9 7 1 9 6 1 1 8 6 3 3 4 8 , , , , , , 3 5 7 2 5 3 5 8 8 5 6 4 5 9 4 6 2 6 1 9 2 6 1 7 8 5 2 5 6 , , , , , , 5 2 8 9 2 8 1 4 1 8 6 0 6 1 2 1 0 5 1 9 2 1 6 6 8 7 2 5 2 , , , , , , 7 9 2 9 7 3 5 3 6 1 1 6 5 1 8 3 8 4 1 9 2 1 6 7 8 3 5 2 8 , , , , , , 3 5 3 7 4 4 3 9 1 5 2 0 7 0 6 7 0 4 1 9 2 6 1 4 6 8 1 1 7 , , , , , , 8 6 5 9 1 2 7 4 7 3 1 5 7 1 8 1 5 2 1 9 2 6 1 6 8 3 8 0 4 , , , , , , 2 4 0 7 3 8 7 7 4 1 3 1 8 2 4 0 4 0 9 Bankers acceptances and commercial paper 2,571 2,546 2,776 2,768 2,676 2,697 2,580 2,644 2,699 10 All other 96,345 95,207 94,971 93,821 94,536 94,271 94,758 94,198 93,572 11 U.S. addressees 93,254 92,162 91,663 90,517 91,112 90,900 91,363 90,776 90,282 12 Non-U.S. addressees 3,090 3,046 3,307 3,304 3,424 3,371 3,394 3,421 3,291 1 1 1 1 1 1 8 7 3 4 6 5 F T L o o o N r B C a f a o n o i p n n n s m u a k b r s m n s c a e c h n e c i i n r a a u k c l s r f i i f e i o n a i n d n l r g s e a b t b a i n i a g y t n c n u n d i r t a k e c i l s c o a o a n i l u i n r n s n e r s s t t y t t i r h i t a n i e u e t g s e t U i o s n e n i c s t u e r d i t S ie t s a te .. s . , 2 3 1 3 4 3 5 6 1 , , , , , , 2 3 7 9 7 9 0 5 5 8 0 1 1 7 8 0 4 9 2 3 1 5 5 3 2 3 7 , , , , , , 8 4 5 0 9 9 0 9 8 0 0 0 1 3 2 4 2 7 2 3 1 6 4 3 5 2 8 , , , , , , 7 4 0 6 8 0 2 7 4 6 1 1 1 8 9 9 4 4 3 2 1 4 3 6 5 8 1 , , , , , , 3 4 4 6 8 9 1 7 4 0 4 9 5 1 6 8 0 9 3 2 1 3 7 6 4 2 8 , , , , , . 2 2 3 9 1 7 9 8 1 9 0 8 7 5 1 5 6 0 3 2 1 3 5 5 3 8 1 , , , , , , 3 7 5 9 3 8 0 0 0 8 0 1 7 7 3 2 6 9 3 2 1 3 6 5 3 1 8 , , , , , , 3 7 0 2 5 7 7 5 7 9 2 8 1 6 4 9 0 4 3 2 1 2 3 5 5 8 1 , , , , , , 5 2 3 3 2 6 8 7 1 5 9 6 5 2 3 1 6 6 3 2 1 4 5 2 3 8 1 , , , , , , 1 6 9 7 3 8 3 0 5 9 1 6 5 4 6 4 3 6 19 To foreign governments and official institutions 333 407 412 395 398 396 386 370 368 20 All other 2,358 2,327 2,194 2,040 2,107 2,082 2,004 2,734 2,637 21 Other assets (claims on nonrelated parties) . 31,916 31,916 31,117 31,714 32,209 32,090 30,910 30,741 33,934 22 Total assets3 307,487 304,749 302,616 302,014 312,754 310,535 309,771 306,975 306,235 23 Deposits or credit balances due to other than directly related institutions 102,342 101,909 100,295 103,0% 101.333 99,966 99,680 99,825 102,792 24 Demand deposits 4,365 4,551 3,765 3,998 4,148 3,859 4,061 3,911 4,933 25 Individuals, partnerships, and corporations. 2,653 2,868 2,878 2,952 3,144 2,962 3,060 3,219 3,413 26 Other 1,712 1,683 887 1,046 1,004 897 1,001 693 1,519 27 Nontransaction accounts 97,977 97,357 96,530 99,098 97,185 96,107 95,619 95,914 97,859 28 Individuals, partnerships, and corporations 69,466 68,244 66,900 69,106 67,619 67,240 66,701 66,456 67,958 29 Other 28,511 29,113 29,630 29,992 29,566 28,866 28,918 29,458 29,901 30 Borrowings from other than directly related institutions 87,797 88,234 88,470 83,919 94,763 94,459 94,217 88,359 86,619 31 Federal funds purchased5 47,476 45,592 45,320 41,104 47,578 44,887 47,768 43,257 45,148 32 From commercial banks in the United States 14,970 11,836 14,851 10,863 14,652 14,994 16,264 11,999 18,625 3 3 3 4 Ot F h r er o m li a o b t i h li e t r ie s s for borrowed money 4 3 0 2 , , 3 5 2 0 1 6 4 3 2 3 , , 6 7 4 5 1 7 4 3 3 0 , . 1 46 5 9 0 4 3 2 0 , , 8 2 1 4 5 2 4 3 7 2 , , 1 9 8 2 5 6 4 2 9 9 , , 5 8 7 9 3 3 3 4 1 6 , , 5 4 0 5 4 0 3 45 1 , , 1 2 0 5 1 9 4 2 1 6 , , 4 5 7 2 1 3 35 To commercial banks in the United States 8,733 9,331 9,459 8,544 9,154 9,981 10,194 9,619 9,317 3 3 6 7 Ot T h o e r o l t i h a e b r i s li ties to nonrelated parties 3 31 1 , , 1 5 2 8 7 8 3 3 3 1 , ,9 3 3 1 8 0 3 3 3 0 , , 6 9 9 9 1 4 3 3 4 1 , , 2 2 7 7 1 6 3 31 8 , , 2 0 4 3 5 0 3 3 9 2 , , 5 4 9 8 1 6 3 3 6 0 , , 2 1 5 3 6 6 3 3 5 0 , , 4 3 8 2 3 0 3 32 2 , , 4 1 6 5 2 4 38 Total liabilities6 307,487 304,749 302,616 302,014 312,754 310,535 309,771 306,975 306,235 39 T M o E t M al O l oans (gross) and securities, adjusted 212,246 209,817 209,722 208,619 212,705 210,498 213,879 211,219 210,082 40 Net due to related institutions abroad 50,502 48,620 49,342 48,926 48,332 46,414 50,431 51,807 55,286 1. Includes securities purchased under agreements to resell. 5. Includes securities sold under agreements to repurchase. 2. Includes transactions with nonbank brokers and dealers in securities. 6. Includes net to related institutions abroad for U.S. branches and agencies of 3. Includes net due from related institutions abroad for U.S. branches and foreign banks having a net "due to" position. agencies of foreign banks having a net "due from" position. 7. Excludes loans to and federal funds transactions with commercial banks in 4. Includes other transaction deposits. the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic NonfinancialS tatistics • June 1993 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period Year ending December 1992 1993 IItteemm 1988 1989 1990 1991 1992 Sept. Oct. Nov. Dec. Jan. Feb. Commercial paper (seasonally adjusted unless noted otherwise) 11 AAllll iissssuueerrss 458,464 525,831 562,656r 531,724r 549,433r 550,727r 557,915r 558,414r 549,433r 542,438 529,400 FFiinnaanncciiaall ccoommppaanniieess11 DDeeaalleerr--ppllaacceedd ppaappeerr 22 TToottaall 159,777 183,622 214,706r 213,823r 228,260r 234,242r 231,751" 230,966" 228,260" 215,126 203,716 33 BBaannkk--rreellaatteedd ((nnoott sseeaassoonnaallllyy aaddjjuusstteedd)) 1,248 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. DDiirreeccttllyy ppllaacceedd ppaappeerr44 44 TToottaall 194,931 210,930 200,036r 183,379" 172,813r 178,184" 181,388" 179,279" 172,813" 181,264 177,370 55 BBaannkk--rreellaatteedd ((nnoott sseeaassoonnaallllyy aaddjjuusstteedd)) 43,155 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 66 NNoonnffiinnaanncciiaall ccoommppaanniieess55 103,756 131,279 147,914r 134,522r 148,360" 138,301" 144,776" 148,169" 148,360" 146,048 148,314 Bankers dollar acceptances (not seasonally adjusted)6 7 Total 66,631 62,972 54,771 43,770 38,194 37,814 37,599 37,651 38,194 35,995' 35,212 Holder 8 Accepting banks 9,086 9,433 9,017 11,017 10,555 10,436 10,236 10,301 10,555 9,115" 9,869 9 Own bills 8,022 8,510 7,930 9,347 9,097 9,073 8,764 9,156 9,097 7,922" 8,352 10 Bills bought from other banks 1,064 924 1,087 1,670 1,458 1,363 1,472 1,145 1,458 1,193 1,516 Federal Reserve Banks 11 Foreign correspondents 1,493 1,066 918 1,739 1,276 1,803 1,204 1,289 1,276 1,317 1,169 12 Others 56,052 52,473 44,836 31,014 26,364 25,575 26,159 26,061 26,364 25,563" 24,175 Basis 13 Imports into United States 14,984 15,651 13,095 12,843 12,209 12,227 12,116 12,133 12,209 11,146 11,120 14 Exports from United States 14,410 13,683 12,703 10,351 8,096 8,051 7,849 7,673 8,096 7,740" 7,547 15 All other 37,237 33,638 28,973 20,577 17,890 17,536 17,633 17,846 17,890 17,109 16,545 1. Institutions engaged primarily in commercial, savings, and mortgage bank- 5. Includes public utilities and firms engaged primarily in such activities as ing; sales, personal, and mortgage financing; factoring, finance leasing, and other communications, construction, manufacturing, mining, wholesale and retail trade, business lending; insurance underwriting; and other investment activities. transportation, and services. 2. Includes all financial-company paper sold by dealers in the open market. 6. Data on bankers acceptances are gathered from approximately 100 institu- 3. Bank-related series were discontinued in January 1989. tions. The reporting group is revised every January. 4. As reported by financial companies that place their paper directly with 7. In 1977 the Federal Reserve discontinued operations in bankers acceptances investors. for its own account. 1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans1 Percent per year Average Average Rate Period rate rate Period 10.50 1990 10.01 1991—Jan. ... 9.52 1992—Jan. ... 10.00 1991 8.46 Feb. .. 9.05 Feb. .. 1992 6.25 Mar. .. 9.00 Mar. .. 9.50 Apr. .. 9.00 Apr. .. 9.00 1990 10.11 May ... 8.50 May ... 8.50 Feb. 10.00 June .. 8.50 June .. 8.00 Mar. 10.00 July ... 8.50 July ... 7.50 Apr. 10.00 Aug. .. 8.50 Aug. .. 6.50 May . 10.00 Sept. .. 8.20 Sept. .. June 10.00 Oct. ... 8.00 Oct. ... 6.00 July . 10.00 Nov. .. 7.58 Nov. .. Aug. 10.00 Dec. .. 7.21 Dec. Sept. 10.00 Oct. . 10.00 1993— Jan. Nov. 10.00 Feb. Dec. 10.00 Mar. Apr. 1. Data in this table also appear in the Board's H.15 (519) weekly and G.13 (415) monthly statistical releases. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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 1993 1993, week ending 11999900 11999911 11999922 Dec. Jan. Feb. Mar. Feb. 26 Mar. 5 Mar. 12 Mar. 19 MONEY MARKET INSTRUMENTS 1 Federal funds1,2,3 8.10 5.69 3.52 2.92 3.02 3.03 3.07 2.91 3.24 3.02 3.04 2 Discount window borrowing^ 6.98 5.45 3.25 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Commercial paper3'5,6 3 1-month 8.15 5.89 3.71 3.71 3.21 3.14 3.15 3.11 3.13 3.15 3.16 4 3-month 8.06 5.87 3.75 3.67 3.25 3.18 3.17 3.15 3.15 3.18 3.18 5 6-month 7.95 5.85 3.80 3.70 3.35 3.27 3.24 3.23 3.23 3.26 3.24 Finance paper, directly placed3,5,7 6 1-month 8.00 5.73 3.62 3.68 3.25 3.18 3.15 3.17 3.20 3.18 3.16 7 3-month 7.87 5.71 3.65 3.58 3.32 3.27 3.17 3.26 3.24 3.21 3.17 8 6-month 7.53 5.60 3.63 3.52 3.29 3.21 3.14 3.20 3.17 3.17 3.16 Bankers acceptances3,5,8 9 3-month 7.93 5.70 3.62 3.44 3.14 3.06 3.07 3.05 3.06 3.08 3.08 10 6-month 7.80 5.67 3.67 3.47 3.23 3.15 3.14 3.10 3.11 3.15 3.15 Certificates of deposit, secondary marker 11 1-month 8.15 5.82 3.64 3.57 3.14 3.08 3.10 3.06 3.10 3.09 3.10 12 3-month 8.15 5.83 3.68 3.48 3.19 3.12 3.11 3.10 3.11 3.12 3.11 13 6-month 8.17 5.91 3.76 3.55 3.33 3.22 3.20 3.18 3.19 3.21 3.21 14 Eurodollar deposits, 3-month310 8.16 5.86 3.70 3.50 3.22 3.12 3.11 3.08 3.08 3.13 3.13 U.S. Treasury bills Secondary market3,5 15 3-month 7.50 5.38 3.43 3.22 3.00 2.93 2.95 2.95 2.95 2.98 2.97 16 6-month 7.46 5.44 3.54 3.36 3.14 3.07 3.05 3.04 3.04 3.09 3.08 17 1-year 7.35 5.52 3.71 3.55 3.35 3.25 3.20 3.17 3.17 3.26 3.22 Auction average ' '' 18 3-month 7.51 5.42 3.45 3.25 3.06 2.95 2.97 2.96 2.97 2.98 3.00 19 6-month 7.47 5.49 3.57 3.39 3.17 3.08 3.08 3.06 3.05 3.09 3.12 20 1-year 7.36 5.54 3.75 3.57 3.52 3.32 3.09 n.a. n.a. 3.09 n.a. U.S. TREASURY NOTES AND BONDS Constant maturities12 21 1-year 7.89 5.86 3.89 3.71 3.50 3.39 3.33 3.31 3.30 3.39 3.36 22 2-year 8.16 6.49 4.77 4.67 4.39 4.10 3.95 3.95 3.85 4.03 3.99 23 3-year 8.26 6.82 5.30 5.21 4.93 4.58 4.40 4.38 4.28 4.47 4.46 24 5-year 8.37 7.37 6.19 6.08 5.83 5.43 5.19 5.21 5.09 5.24 5.23 25 7-year 8.52 7.68 6.63 6.46 6.26 5.87 5.66 5.64 5.54 5.65 5.73 26 10-year 8.55 7.86 7.01 6.77 6.60 6.26 5.98 6.02 5.90 5.96 6.03 27 30-year 8.61 8.14 7.67 7.44 7.34 7.09 6.82 6.89 6.79 6.76 6.85 Composite 8.74 8.16 7.52 7.30 7.17 6.89 6.65 6.70 6.58 6.59 6.69 28 More than 10 years (long-term) STATE AND LOCAL NOTES AND BONDS Moody's series13 6.96 6.56 6.09 5.91 5.91 5.61 5.42 5.47 5.29 5.18 5.64 29 Aaa 7.29 6.99 6.48 6.27 6.28 5.98 5.81 5.84 5.66 5.58 6.05 30 Baa 7.27 6.92 6.44 6.22 6.16 5.87 5.64 5.60 5.47 5.58 5.71 31 Bond Buyer series14 CORPORATE BONDS 9.77 9.23 8.55 8.35 8.24 8.01 7.83 7.88 7.81 7.80 7.85 32 Seasoned issues, all industries15 Rating group 9.32 8.77 8.14 7.98 7.91 7.71 7.58 7.61 7.56 7.54 7.61 33 Aaa 9.56 9.05 8.46 8.24 8.11 7.90 7.72 7.77 7.70 7.70 7.74 34 Aa 9.82 9.30 8.62 8.37 8.26 8.03 7.86 7.90 7.84 7.83 7.88 35 A 10.36 9.80 8.98 8.81 8.67 8.39 8.15 8.22 8.12 8.11 8.16 36 Baa 10.01 9.32 8.52 8.27 8.13 7.80 7.61 7.63 7.47 7.62 7.58 37 A-rated, recently offered utility bonds16 . MEMO 8.96 8.17 7.46 7.45 7.25 7.37 6.70 7.29 6.82 6.66 6.73 Dividend-price ratio 3.61 3.25 2.99 2.90 2.88 2.81 2.76 2.82 2.77 2.73 2.78 38 Preferred stocks 39 Common stocks 1. The daily effective federal funds rate is a weighted average of rates on 12. Yields on actively traded issues adjusted to constant maturities. Source: trades through New York brokers. U.S. Treasury. 2. Weekly figures are averages of seven calendar days ending on Wednesday 13. General obligations based on Thursday figures; Moody's Investors Service. of the current week; monthly figures include each calendar day in the month. 14. General obligations only, with twenty years to maturity, issued by twenty 3. Annualized using a 360-day year or bank interest. state and local governmental units of mixed quality. Based on figures for 4. Rate for the Federal Reserve Bank of New York. Thursday. 5. Quoted on a discount basis. 15. Daily figures from Moody's Investors Service. Based on yields to maturity 6. An average of offering rates on commercial paper placed by several leading on selected long-term bonds. dealers for firms whose bond rating is AA or the equivalent. 16. Compilation of the Federal Reserve. This series is an estimate of the yield 7. An average of offering rates on paper directly placed by finance companies. on recently offered, A-rated utility bonds with a thirty-year maturity and five 8. Representative closing yields for acceptances of the highest-rated money years of call protection. Weekly data are based on Friday quotations. center banks. 17. Standard and Poor's corporate series. Preferred stock ratio based on a 9. An average of dealer offering rates on nationally traded certificates of sample of ten issues: four public utilities, four industrials, one financial, and one deposit. transportation. Common stock ratios on the 500 stocks in the price index. 10. Bid rates for Eurodollar deposits at 11 a.m. London time. Data are for NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases. indication purposes only. For ordering address, see inside front cover. 11. Auction date for daily data; weekly and monthly averages computed on an issue-date basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Nonfinancial Statistics • June 1993 1.36 STOCK MARKET Selected Statistics 1992 1993 IInnddiiccaattoorr 11999900 11999911 11999922 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Prices and trading volume (averages of daily figures) Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 183.66 206.35 229.00 228.17 230.07 230.13 226.97 232.84 239.47 239.75r 243.41 248.12 2 Industrial 226.06 258.16 284.26 281.90 284.44 285.76 279.70 287.80 290.77 292.11 294.40 298.75 3 Transportation 158.80 173.97 201.02 198.36 191.31 191.61 192.30 204.63 212.35 221.00 226.96 229.42 4 Utility 90.72 92.64 99.48 101.18 103.41 102.26 101.62 101.13 103.85 105.52 109.45 112.53 5 Finance 133.21 150.84 179.29 180.96 180.47 178.27 181.36 189.27 196.87 203.38 209.93 217.01 6 Standard & Poor's Corporation (1941-43 = 10)' 335.01 376.20 415.75 415.05 417.93 418.48 412.50 422.84 435.64 435.40r 441.76 450.15 7 American Stock Exchange (Aug. 31, 1973 = 50? 338.32 360.32 391.28 384.07 385.80 382.67 371.27 387.75 392.69 402.75r 409.39 418.56 Volume of trading (thousands of shares) 8 New York Stock Exchange 156,359 179,411 202,558 194,138 174,003 191,774 204,787 208,221 222,736 266,011 288,540 251,170 9 American Stock Exchange 13,155 12,486 14,171 10,722 11,875 11,198 11,966 14,925 16,523 17,184 18,154 16,150 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers 28,210 36,660 43,990 39,640 39,940 41,250 41,590 43,630 43,990 44,020 44,290 45,160 Free credit balances at brokers4 11 Margin accounts5 8,050 8,290 8,970 7,920 8,060 8,060 8,355 8,500 8,970 8,980 9,790 9,650 12 Cash accounts 19,285 19,255 22,510 18,775 18,305 19,650 18,700 19,310 22,510 20,360 22,190 21,450 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 1144 CCoonnvveerrttiibbllee bboonnddss 50 60 50 50 50 1155 SShhoorrtt ssaalleess 70 80 65 55 65 ooo 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 1992 1993 AAccccoouunntt 11999900 11999911 Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. SAIF-insured institutions 1 Assets 1,084,821 919,979 872,026 870,334 861,517 856,390 856,165 847,235 846,730 840,605 2 Mortgages 633,385 551,322 524,954 521,911 516,654 512,264 512,077 508,815 502,863 496,974 3 Mortgage-backed securities 155,228 129,461 124,763 124,225 123,282 122,385 120,438 119,715 120,715 120,292 4 Contra-assets to mortgage assets1 . 16,897 12,307 10,959 11,120 11,282 11,044 11,164 11,073 11,207 10,509 5 Commercial loans 24,125 17,139 15,075 14,607 14,020 13,929 13,525 13,419 13,630 13,180 6 Consumer loans 48,753 41,775 37,999 37,868 37,403 37,230 37,123 36,732 35,938 36,019 7 Contra-assets to nonmortgage loans1.. 1,939 1,239 980 949 944 910 932 982 931 845 n.a. n.a. 8 Cash and investment securities 146,644 120,077 116,462 120,763 119,539 120,220 124,140 120,684 126,719 127,893 9 Other2 95,522 73,751 64,711 63,030 62,844 62,317 60,958 59,925 59,002 57,600 10 Liabilities and net worth . 1,084,821 919,979 872,026 870,334 861,517 856,390 856,165 847,235 846,730 840,605 11 Deposits 835,496 731,937 689,777 688,199 682,535 676,141 672,354 667,027 660,906 654,047 12 Borrowed money 197,353 121,923 111,262 110,126 108,943 109,036 110,109 110,022 114,123 114,354 13 FHLBB 100,391 65,842 62,268 61,439 62,760 62,359 62,225 64,105 63,065 64,742 14 Other 96,962 56,081 48,994 48,687 46,183 46,677 47,884 45,917 51,058 49,612 15 Other 21,332 17,560 18,883 19,626 17,740 18,570 20,523 18,017 19,853 20,406 16 Net worth 30,640 48,559 52,103 52,383 52,299 52,642 53,178 52,169 51,846 51,798 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. Office of Thrift Supevision (OTS), insured by the Savings Association ances. Contra-assets to nonmortgage loans include loans in process, unearned Insurance Fund (SAIF) and regulated by the OTS. discounts and deferred loan fees, and specific reserves and valuation allowances. 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 1993 11999900 11999911 11999922rr Oct. Nov. Dec. Jan. Feb. Mar. U.S. budget' 1 Receipts, total 1,031,308 1,054,265 1,090,499 76,832 74,633 113,690" 112,718r 66,136r 83,453 7. On-budget 749,654 760,382 788,073 55,056 51,219 89,594r 90,129 41,036r 57,259 3 Off-budget 281,654 293,883 302,426 21,776 23,414 24,096 22,589 25,100 26,194 4 Outlays, total 1,251,766 1,323,757 1,380,482 125,627r 107,361r 152,636r 82,903r 113,730r 128,029 5 On-budget 1,026,701 1,082,072 1,128,143 103,786r 83,442r 116,575r 84,928r 89,274r 103,793 6 Off-budget 225,064 241,685 252,339 21,841 23,919 36,061 -2,025 24,456 24,237 7 Surplus or deficit (-), total -220,458 -269,492 -289,983 -48,795r -32,728r -38,946r 29,815r -47,594 -46,577 8 On-budget -277,047 -321,690 -340,070 -48,730" -32,223r -26,981r 5,201r -48,238r -46,534 9 Off-budget 56,590 52,198 50,087 -65 -505 -11,965 24,614 644 1,957 Source of financing (total) 10 Borrowing from the public 220,101 276,802 310,918 -1,552 61,969 21,078 -8,355 3300,,668899 3377,,772277 11 Operating cash (decrease, or increase (-)) ... 818 -1,329 -17,305 39,420 -7,346 -3,175 -16,436 27,227 -2,452 12 Other 2 -461 -5,981 -3,630 10,927r -21,895r 21,043r -5,024r -10,322 9,302 MEMO 13 Treasury operating balance (level, end of period) 40,155 41,484 58,789 19,369 26,715 29,890 46,326 1199,,009999 2211,,555511 14 Federal Reserve Banks 7,638 7,928 24,586 4,413 6,985 7,492 9,572 5,350 6,752 15 Tax and loan accounts 32,517 33,556 34,203 14,956 19,729 22,399 36,754 13,749 14,799 1. In accordance with the Balanced Budget and Emergency Deficit Control Act monetary assets; accrued interest payable to the public; allocations of SDRs; of 1985, all former off-budget entries are now presented on-budget. Federal deposit funds; miscellaneous liability (including checks outstanding) and asset Financing Bank (FFB) activities are now shown as separate accounts under the accounts; seigniorage; increment on gold; net gain or loss for U.S. currency agencies that use the FFB to finance their programs. The act also moved two valuation adjustment; net gain or loss for IMF loan-valuation adjustment; and social security trust funds (federal old-age survivors insurance and federal profit on sale of gold. disability insurance) off budget. The Postal Service is included as an off-budget SOURCES. Monthly Treasury Statement of Receipts and Outlays of the U.S. item in the Monthly Treasury Statement beginning in 1990. Government (MTS) and the Budget of the U.S. Government. 2. Includes special drawing rights (SDRs); reserve position on the U.S. quota in the International Monetary Fund (IMF); loans to the IMF; other cash and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Financial Statistics • June 1993 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1 Millions of dollars Fiscal year Calendar year SSSooouuurrrccceee ooorrr tttyyypppeee 1991 1992 1993 11999911 11999922 HI H2 Hlr H2 Jan. Feb. Mar. RECEIPTS 1 All sources 1,054,265 1,090,499" 540,504 519,180"^ 560,341 540,501r 112,718r 66,136 83,453 2 Individual income taxes, net 467,827 476,l22r 232,389 234,939r 236,719 246,961 73,704 23,947 27,935 3 Withheld 404,152 408,352 193,440 210,552 198,868 215,591 36,255 33,652 40,006 4 Presidential Election Campaign Fund .... 32 30 31 1 20 10 0 4 6 Nonwithheld 142,693 149,342 109,405 33,296 110,997 39,371 38,452 967 5,253 6 Refunds 79,050 81,691r 70,487 8,910"^ 73,165 8,011 1,003 10,677 17,330 1 Corporation income taxes Gross receipts 113,599 117,951 58,903 54,016 61,682 58,022 3,969 2,510 14,644 8 Refunds 15,513 17,680 7,904 8,649 9,403 7,219 758 1,719 1,920 9 Social insurance taxes and contributions, net 396,011 413,689 214,303 186,839 224,570 192,599 29,416 34,251 33,652 10 Employment taxes and contributions 370,526 385,491 199,727 175,802 208,110 180,758 28,209 31,623 3322,,998800 11 Self-employment taxes and contributions3 25,457 24,421 22,150 3,306 20,433 3,988 -3,032 1,487 873 12 Unemployment insurance 20,922 23,410 12,296 8,721 14,070 9,397 844 2,259 240 13 Other net receipts4 4,563 4,788 2,279 2,317 2,389 2,445 363 369 432 14 Excise taxes 42,430 45,570 20,703 24,429 22,389 23,456 3,307 3,342 4,514 15 Customs deposits 15,921 17,359 7,488 8,694 8,146 9,497 1,310 1,347 1,598 16 Estate and gift taxes 11,138 11,143 5,631 5,507 5,701 5,733 888 822 977 17 Miscellaneous receipts 22,852 26,507r 8,991 13,405r 10,686 11,467r 88 lr 1,637 2,051 OUTLAYS 18 All types 1,323,757 l,380,482r 632,153 694,362r 704,279 723,201r 82,903r 113,730 128,029 19 National defense 272,514 298,361 122,089 147,669 147,064 155,501 19,683 22,903 25,511 20 International affairs 16,167 16,106 7,592 7,691 8,537 9,911 1,161 1,253 1,181 21 General science, space, and technology .... 15,946 16,409 7,496 8,472 7,952 8,521 1,395 1,325 1,103 22 Energy 2,511 4,509 1,235 1,698 1,442 3,109 15 399 560 23 Natural resources and environment 18,708 20,017 8,324 11,130 8,607 11,617 1,372 1,282 1,549 24 Agriculture 14,864 14,997 7,684 7,418 7,526 8,881 1,206 1,145 4,244 25 Commerce and housing credit 75,639 9,753r 17,992 36,534 15,610 -7,843 -1,832 -3,532 -1,368 26 Transportation 31,531 33,759" 14,748 17,093 15,676 18,477 2,363 2,093 3,383 27 Community and regional development 7,432 7,923r 3,552 3,783 3,902 4,540 650 690 760 28 Education, training, employment, and social services 41,479 45,248 21,234 21,114 23,225 20,922 4,360 4,068 4,607 29 Health 71,183 89,570 35,608 41,459 44,034 47,223 7,828 8,053 8,379 30 Social security and medicare 373,495 406,569r 190,247 193,098 205,500 232,109 10,376 35,005 37,235 31 Income security 171,618 197,867r 88,778 87,693r 104,951 98,693r 16,135r 21,259 21,056 32 Veterans benefits and services 31,344 34,133 14,326 17,425 15,596 18,561 1,641 2,649 4,090 33 Administration of justice 12,295 14,450 6,187 6,574 7,434 7,283 1,222 1,060 1,270 34 General government 11,358 12,939 5,212 6,794 5,050 8,138 133 994 1,040 35 Net interest6 195,012 199,429 98,556 99,149 100,401 98,549 17,858 15,893 16,415 36 Undistributed offsetting receipts -39,356 -39,280 -18,702 -20,436 -18,228 -20,914 -2,660 -2,809 -2,987 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 1994. 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 1993 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 1 Federal debt outstanding 3,492 3,563 3,683 3,820 3,897 4,001 4,083 4,196 2 3 4 Pu H H bl e e ic l l d d d b b e y y b t p a s g u e e b c n l u i c c r i i e t s i es 3 2, , 5 4 8 9 6 6 8 5 7 3 2, , 6 5 8 4 3 9 3 8 5 3 2 , , 6 7 9 6 4 2 5 6 0 2 3 , , 8 8 9 3 0 6 3 2 9 3 2 , , 8 9 9 8 1 6 1 8 4 3 2 1 , , , 9 9 0 7 8 0 7 5 8 4 3 1 , , , 0 0 0 6 4 1 5 8 6 4 3 1 , , , 1 1 0 7 2 4 7 9 8 4 n n ,2 . . a a 3 . . 1 1 r r 5 Agency securities 27 25 18 19 16 16 18 19 n.a.r 6 7 H H e e l l d d b b y y a p g u e b n li c c i es 26 0 25 0 1 0 8 1 0 9 1 0 6 1 0 6 1 0 8 1 0 9 n n . . a a . . r r 8 Debt subject to statutory limit. 3,377 3,450 3,569 3,707 3,784 3,891 3,973 4,086 4,140R 1 9 0 O Pu th b e li r c d d e e b b t t 1 securities 3,377 0 3,450 0 3,569 0 3,706 0 3,783 0 3,890 0 3,972 0 4,085 0 4,139 0 " " MEMO 11 Statutory debt limit 4,145 4,145 4,145 4,145 4,145 4,145" 1. Consists of guaranteed debt of Treasury and other federal agencies, specified SOURCES. U.S. Treasury Department, Monthly Statement of the Public Debt of participation certificates, notes to international lending organizations, and District the United States and Treasury Bulletin. of Columbia stadium bonds. 1.41 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership Billions of dollars, end of period 1992 1993 Type and holder 11998899 11999900 11999911 11999922 Q2 Q3 Q4 Q1 1 Total gross public debt 2,953.0 3,364.8 3,801.7 4,177.0 3,984.7 4,064.6 4,177.0 4,230.6 By type 2 Interest-bearing 2,931.8 3,362.0 3,798.9 4,173.9 3,981.8 4,061.8 4,173.9 4,227.6 3 Marketable 1,945.4 2,195.8 2,471.6 2,754.1 2,605.1 2,677.5 2,754.1 2,807.1 4 Bills 430.6 527.4 590.4 657.7 618.2 634.3 657.7 659.9 5 Notes 1,151.5 1,265.2 1,430.8 1,608.9 1,517.6 1,566.4 1,608.9 1,652.1 6 Bonds 348.2 388.2 435.5 472.5 454.3 461.8 472.5 480.2 7 Nonmarketable 986.4 1,166.2 1,327.2 1,419.8 1,376.7 1,384.3 1,419.8 1,420.5 8 State and local government series 163.3 160.8 159.7 153.5 161.9 157.6 153.5 151.6 9 Foreign issues 6.8 43.5 41.9 37.4 38.7 37.0 37.4 37.0 10 Government 6.8 43.5 41.9 37.4 38.7 37.0 37.4 37.0 11 Public .0 .0 .0 .0 .0 .0 .0 .0 12 Savings bonds and notes. 115.7 124.1 135.9 155.0 143.2 148.3 155.0 161.4 13 Government account series 695.6 813.8 959.2 1,043.5 1,002.5 1,011.0 1,043.5 1,040.0 14 Non-interest-bearing 21.2 2.8 2.8 3.1 2.9 2.8 3.1 3.0 By holder 4 15 U.S. Treasury and other federal agencies and trust funds 707.8 828.3 968.7 1,047.8 1,007.9 1,016.3 1,047.8 16 Federal Reserve Banks 228.4 259.8 281.8 302.5 276.9 296.4 302.5 17 Private investors 2,015.8 2,288.3 2,563.2 2,839.9 2,712.4 2,765.5 2,839.9 18 Commercial banks 164.9 171.5 233.4 292.0 267.3" 286.7" 292.0 19 Money market funds 14.9 45.4 80.0 80.6 79.4 79.8" 80.6 20 Insurance companies 125.1 142.0 168.7 183.0 180.8" 181.6" 183,0 n.a. 21 Other companies 93.4 108.9 150.8 192.5 175.0 180.8 192.5 22 State and local treasuries 487.5 490.4 520.3 532.0 528.5 530.0 532.0 Individuals 23 Savings bonds 117.7 126.2 138.1 157.3 145.4 150.3 157.3 24 Other securities 98.7 107.6 125.8 131.9 129.7 130.9 131.9 25 Foreign and international 392.9 421.7 455.0 512.5 492.9 499.0 512.5 26 Other miscellaneous investors 520.7 674.5 691.1 758.1 713.5" 726.3" 758.1 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 • June 1993 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Millions of dollars, daily averages 1992 1993 1993, week ending Item Dec. Jan. Feb. Feb. 3 Feb. 10 Feb. 17 Feb. 24 Mar. 3 Mar. 10 Mar. 17 Mar. 24 Mar. 31 IMMEDIATE TRANSACTIONS2 By type of security U.S. Treasury securities 1 Bills 42,358 48,056 44,513 42,512 46,358 43,801 45,439 42,368 60,426 37,544 39,583 36,322 Coupon securities, by maturity 2 Less than 3.5 years 36,143 47,717 56,575 50,106 58,885 55,363 63,656 45,826 55,509 43,753 47,550 43,291 3 3.5 to 7.5 years 28,723 46,216 48,292 46,365 44,155 42,127 60,642 46,067 53,711 43,393 40,783 42,606 4 7.5 to 15 years 13,054 19,149 28,505 21,061 30,741 27,176 33,253 25,537 30,411 24,281 19,568 17,455 5 15 years or more 11,093 16,239 21,480 16,349 18,095 26,574 25,249 15,485 23,961 19,067 14,606 13,979 Federal agency securities Debt, by maturity 6 Less than 3.5 years 5,635 << 6,719 7,082 7,228 6,727 6,213 6,151 4,902 5,281 6,042 6,718 7 3.5 to 7.5 years 55 LR 824r 881 877 955 715 880 1,123 854 706 887 503 8 7.5 years or more 827 ll,,116699rr 1,194 1,046 1,350 1,157 1,186 1,138 1,070 1,022 11,,117711 1,228 Mortgage-backed 9 Pass-throughs 14,208 20,000 22,544 15,083 29,594 24,142 20,093 18,247 22,852 14,743 9,641 9,461 10 All others 3,122 3,751r 4,505 4,909 3,406 3,413 5,772 6,206 3,641 3,391 3,517 4,369 By type of counterparty Primary dealers and brokers 11 U.S. Treasury securities 80,472 109,246 123,551 108,449 124,847 119,783 141,507 107,496 137,942 106,929 99,558 97,963 Federal agency securities 12 Debt l,275r l,779r 1,970 2,051 2,052 1,957 1,787 2,133 1,711 1,550 1,776 1,832 13 Mortgage-backed 7,917 10,454r 11,755 8,613 15,762 12,384 10,043 9,153 10,936 7,283 5,164 5,108 Customers 14 U.S. Treasury securities 50,898 68,131 75,815 67,945 73,387 75,258 86,733 67,787 86,077 61,111 62,531 55,689 Federal agency securities 15 Debt 5.7371 6,384r 6,825 6,954 7,481 6,642 6,493 6,278 5,116 5,458 6,324 6,616 16 Mortgage-backed 9,413 13,296 15,295 11,379 17,238 15,172 15,821 15,299 15,558 10,851 7,995 8,722 FUTURES AND FORWARD TRANSACTIONS By type of deliverable security U.S. Treasury securities 17 Bills 2,464 2,584 2,670 3,106 2,280 1,800 3,029 4,271 3,630 1,192 1,693 1,067 Coupon securities, by maturity 18 Less than 3.5 years 1,637 2,155 2,622 2,104 2,560 2,420 3,230 2,542 3,156 2,058 2,269 1,791 19 3.5 to 7.5 years 1,179 1,486 1,885 1,675 1,396 1,562 2,624 2,382 3,240 1,913 1,841 2,096 20 7.5 to 15 years 2,336 2,668 3,845 3,114 3,985 3,900 3,803 4,557 5,315 2,719 2,578 2,937 21 15 years or more 6,427 9,140 11,748 8,940 10,777 13,241 13,161 11,121 17,788 11,479 8,436 7,764 Federal agency securities Debt, by maturity 22 Less than 3.5 years 97 45 72 53 63 73 108 28 79 21 243 63 23 3.5 to 7.5 years 48 114 129 216 196 46 46 248 40 73 100 105 24 7.5 years or more 18 78r 44 16 92 45 19 25 17 39 38 39 Mortgage-backed 25 Pass-tlu-oughs 11,895 16,656 17,476 14,680 20,912 18,287 13,656 20,604 27,008 26,029 18,238 18,189 26 Others3 829 l,274r 1,478 789 987 2,127 1,734 1,480 1,095 1,802 1,893 1,089 OPTIONS TRANSACTIONS5 By type of underlying security U.S. Treasury, coupon securities, by maturity 27 Less than 3.5 years 1,401 1,537 1,692 1,077 1,300 2,218 2,025 1,450 2,564 1,538 1,271 1,400 28 3.5 to 7.5 years 378 782 443 538 318 339 712 197 418 408 534 503 29 7.5 to 15 years 341 573 679 385 586 431 1,020 1,118 710 620 745 413 30 15 years or more 820 1,233 1,286 775 1,217 1,236 1,881 865 1,231 1,150 835 737 Federal agency, mortgagebacked securities 31 Pass-throughs 338 563 563 448 472 580 781 371 709 610 479 675 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 are based on the number of trading specify delayed delivery. All futures transactions are included regardless of time days in the period. Immediate, forward, and futures transactions are reported at to delivery. Forward contracts for U.S. Treasury securities and federal agency principal value, which does not include accrued interest; options transactions are debt securities are included when the time to delivery is more than five business 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 for several types of options transactions—U.S. Treasury securities, bills; 3. Includes such securities as collateralized mortgage obligations (CMOs), real Federal agency securities, debt; and mortgage-backed securities, other than estate mortgage investment conduits (REMICs), interest-only securities (10s), pass-throughs—are no longer available because activity is insufficient. 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 1993 1993, week ending IItteemm Dec. Jan. Feb. Feb. 3 Feb. 10 Feb. 17 Feb. 24 Mar. 3 Mar. 10 Mar. 17 Mar. 24 Positions NET IMMEDIATE POSITIONS By type of security U.S. Treasury securities 1 Bills 15,994 6,278 4,883 1 3,812 6,383 4,898 7,769 6,217 6,902 14,322 Coupon securities, by maturity 2 Less than 3.5 years 25 -4,518 800 -1,172 1,001 -3,186 3,014 5,028 1,793 -3,334 2,800 3 3.5 to 7.5 years -7,221 -7,905 -10,824 -7,477 -11,500 -14,471 -9,228 -8,561 -12,575 -15,080 -15,846 4 7.5 to 15 years -10,158 -13,562 -9,682 -12,296 -7,470 -9,376 -10,188 -11,245 -8,861 -9,285 -11,208 5 15 years or more 7,071 7,040 7,126 6,194 6,230 8,957 6,671 6,988 9,114 9,691 10,149 Federal agency securities Debt, by maturity 6 Less than 3.5 years 4,297r 5,267r 6,674 8,112 7,881 7,125 4,245 6,943 6,310 8,741 5,604 7 3.5 to 7.5 years 3,282 2,617r 2,708 2,188 2,545 2,169 3,239 3,397 3,303 3,411 3,372 8 7.5 years or more 3,331 3,802r 3,811 3,750 3,440 3,424 4,188 4,524 4,772 4,801 5,240 Mortgage-backed 9 Pass-throughs 24,575 35,214 34,699 32,976 40,227 35,792 32,868 27,607 42,168 37,448 32,746 10 All others 24,932 24,531 24,540 23,742 23,289 24,701 24,068 27,871 23,639 24,782 24,828 Other money market instruments 11 Certificates of deposit 2,743 2,907 3,571 3,623 3,035 3,463 3,913 4,063 3,127 2,652 2,987 12 Commercial paper 7,368 6,947 6,911 8,109 7,338 7,348 5,428 7,097 6,426 6,261 5,883 13 Bankers acceptances 758 672 990 814 811 1,222 919 1,151 1,002 1,0% 1,247 FUTURES AND FORWARD POSITIONS By type of deliverable security U.S. Treasury securities 14 Bills -1,820 -4,355 -5,805 -4,422 -4,800 -5,672 -7,199 -6,392 -4,055 -4,647 -5,860 Coupon securities, by maturity 15 Less than 3.5 years 612 1,488 839 1,495 1,558 1,455 133 -757 -181 166 -394 16 3.5 to 7.5 years 609 2,352 2,513 844 2,467 3,008 3,031 2,075 4,703 3,729 4,474 17 7.5 to 15 years 2,138 3,002 1,851 2,811 1,747 1,428 2,084 1,645 1,056 2,453 3,616 18 15 years or more -7,258 -6,174 -3,781 -5,142 -3,844 -5,207 -2,241 -2,849 -4,024 -7,131 -4,895 Federal agency securities Debt, by maturity 19 Less than 3.5 years -123 -37 -50 -1 38 46 -300 29 0 -295 -303 20 3.5 to 7.5 years -115 -11 -12 -108 2 29 -35 1 -23 -77 -24 21 7.5 years or more -16 20" 22 -55 117 -24 19 -3 64 170 -43 Mortgage-backed 22 Pass-throughs -1,280 -12,104 -14,374 -11,557 -20,522 -14,965 -11,743 -9,299 -20,252 -17,652 -12,455 23 All others 366 1,450 3,326 1,908 2,810 4,003 5,198 832 1,094 4,034 5,787 24 Certificates of deposit -71,895 -66,597 -117,589 -70,026 -99,094 -112,864 -143,753 -148,110 -141,247 -155,743 -167,837 Financing Reverse repurchase agreements 25 Overnight and continuing 208,601r 230,130"^ 230,919 232,519 219,987 247,572 223,160 233,287 246,770 238,647 226,850 26 Term 332,250" 345,749r 364,102 373,888 398,647 339,373 363,266 341,048 371,688 391,491 384,258 Repurchase agreements 27 Overnight and continuing 357,327r 387,0801 404,809 398,4% 393,011 415,205 402,444 416,133 419,689 422,128 395,822 28 Term 326,266r 328,425r 351,505 352,277 382,749 335,085 352,857 322,617 355,986 380,850 382,400 Securities borrowed 29 Overnight and continuing 99,894r 102,138r 113,700 108,787 108,642 112,995 118,472 119,119 117,135 117,945 116,661 30 Term 46,975r 52,406r 52,467 52,082 56,900 52,575 53,055 43,779 42,739 40,464 40,793 Securities loaned 31 Overnight and continuing 3,999r 3,724r 3,898 3,654 3,312 4,105 4,066 4,450 3,473 3,810 3,123 32 Term 601r 351 467 560 226 221 580 1,053 277 358 871 Collateralized loans 33 Overnight and continuing 16,800 16,882 0 0 0 0 0 0 0 0 0 MEMO: Matched book7 Reverse repurchase agreements 34 Overnight and continuing 157,104r 166,917r 162,5% 169,239 154,952 171,838 156,983 164,638 167,598 164,012 154,575 35 Term 289,665r 304,402r 318,706 326,022 349,876 294,472 319,422 299,829 324,918 337,456 335,227 Repurchase agreements 36 Overnight and continuing 191,950r 218,405r 222,893 226,737 224,321 222,536 219,324 224,383 226,875 221,903 210,643 37 Term 243,216r 254,15^ 271,090 278,%5 300,353 256,312 268,533 244,311 275,087 295,198 294,732 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 different types of collateralization. 5. Futures positions reflect standardized agreements 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 • June 1993 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1992 1993 AAggeennccyy 11998888 11998899 11999900 11999911 Sept. Oct. Nov. Dec. Jan. 1 Federal and federally sponsored agencies 381,498 411,805 434,668 442,772 475,606 479,978 481,050 483,970 0 2 Federal agencies 35,668 35,664 42,159 41,035 41,319 41,470 42,081 41,829 41,641 3 Defense Department 8 7 7 7 7 7 7 7 7 4 Export-Import Bank2,3 11,033 10,985 11,376 9,809 7,698 7,698 7,698 7,208 7,208 5 Federal Housing Administration 150 328 393 397 301 309 344 374 231 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 10,123 10,123 10,660 10,660 10,660 8 Tennessee Valley Authority 18,335 17,899 23,435 22,401 23,190 23,333 23,372 23,580 23,535 9 United States Railway Association 0 0 0 0 0 0 0 0 0 10 Federally sponsored agencies7 345,832 375,428 392,509 401,737 434,287 438,508 438,%9 442,141 0 11 Federal Home Loan Banks 135,836 136,108 117,895 107,543 110,830 112,436 114,364 114,733 113,253 12 Federal Home Loan Mortgage Corporation 22,797 26,148 30,941 30,262 36,750 34,108 30,914 29,631 34,479 13 Federal National Mortgage Association 105,459 116,064 123,403 133,937 155,232 159,764 161,308 166,300 165,958 14 Farm Credit Banks8 53,127 54,864 53,590 52,199 52,734 52,510 52,728 51,910 52,264 15 Student Loan Marketing Association9 22,073 28,705 34,194 38,319 38,830 39,766 39,737 39,650 39,812 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 debt1 142,850 134,873 179,083 185,576 164,422 159,899 156,579 154,994 151,059 Lending to federal and federally sponsored agencies 20 Export-Import Bank 11,027 10,979 11,370 9,803 7,692 7,692 7,692 7,202 7,202 21 Postal Service6 5,892 6,195 6,698 8,201 9,903 9,903 10,440 10,440 10,440 22 Student Loan Marketing Association 4,910 4,880 4,850 4,820 4,820 4,790 4,790 4,790 4,790 23 Tennessee Valley Authority 16,955 16,519 14,055 10,725 7,175 7,175 6,975 6,975 6,825 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 42,979 42,979 42,979 42,979 42,979 26 Rural Electrification Administration 19,246 19,265 18,890 18,562 18,143 18,172 18,172 18,172 18,037 27 Other 26,324 23,724 70,896 84,931 73,710 69,188 65,531 64,436 60,786 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 year 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 Fanners Home Administration entry shown on 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 1993 TTyyppee ooff ii oo ss rr ss uu uu ee ssee oo rr iissssuueerr,, 11999900 11999911 11999922 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. 1 AU issues, new and refunding1 120,339 154,402 215,191 19,774 18,698 21,092 14,133 19,577 17,981" 17,793 27,471 By type of issue 2 General obligation 39,610 55,100 78,611 7,005 7,461 7,733 5,203 6,024 44,,884400"" 6,963 8,254 3 Revenue 81,295 99,302 136,580 12,769 11,237 13,359 8,930 13,553 13,141" 10,830 19,217 By type of issuer 4 State 15,149 24,939 25,295 2,933 1,710 2,742 1,688 2,339 1,339 3,485 2,139 5 Special district or statutory authority 72,661 80,614 127,618 11,203 11,054 13,113 8,197 11,159 12,556 n.a. n.a. 6 Municipality, county, or township 32,510 48,849 60,210 5,638 5,934 5,237 4,248 6,079 3,994 4,654 6,977 7 Issues for new capital 103,235 116,953 120,272 11,993 10,496 13,760 8,028 8,010 5,875 4,636 9,716 By use of proceeds 8 Education 17,042 21,121 22,071 1,737 1,237 2,083 1,800 1,658 1,033" 1,264 11,,448822 9 Transportation 11,650 13,395 17,334 2,130 1,977 1,364 531 831 829" 131 2,111 10 Utilities and conservation 11,739 21,039 20,058 2,604 2,265 3,340 960 1,258 894" 423 538 11 Social welfare 23,099 25,648 21,796 767 1,869 2,365 1,070 1,121 777 618 1,556 12 Industrial aid 6,117 8,376 5,424 503 1,176 367 581 339 337 69 765 13 Other purposes 34,607 30,275 33,589 4,252 1,972 4,241 3,086 2,803 2,005 2,131 3,264 1. Par amounts of long-term issues based on date of sale. SOURCES. Securities Data Company beginning January 1993. Investment 2. Includes school districts. Dealer's Digest for earlier data. 1.46 NEW SECURITY ISSUES U.S. Corporations Millions of dollars 1992 1993 TTyyppee ooff iissssuuee,, ooffffeerriinngg,, 11999900 11999911 11999922 oorr iissssuueerr July Aug. Sept. Oct. Nov. Dec. Jan. Feb. 1 All issues1 340,049 465,483 n.a. 46,235 37,091 42,849 39,280" 35,525" 39,424 50,793 59,403 2 Bonds2 299,884 390,018 404,992 39,758 31,815 37,539 32,314" 31,026" 33,375 45,559 49,343 By type of offering 3 Public, domestic 188,848 287,125 377,453 37,833 28,561 36,185 30,249 28,774" 31,835 41,675 4477,,116655 4 Private placement, domestic 86,982 74,930 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5 Sold abroad 23,054 27,962 27,539 1,924 3,254 1,355 2,066" 2,252" 1,540 3,884 2,178 By industry group 6 Manufacturing 51,779 86,628 69,538 5,509 4,720 5,974 7,975 3,467 44,,223322 99,,339933 8,080 7 Commercial and miscellaneous 40,733 36,666 30,049 3,488 2,159 2,374 2,813 2,396" 2,176 3,074 2,268 8 Transportation 12,776 13,598 6,497 766 393 677 290 0 611 316 248 9 Public utility 17,621 23,945 44,643 6,902 4,509 5,230 3,700 1,289 2,867 4,282 5,624 10 Communication 6,687 9,431 13,073 2,081 1,053 1,191 427 374 516 3,019 2,890 11 Real estate and financial 170,288 219,750 241,192 21,011 18,982 22,093 17,110" 23,499" 22,973 25,475 30,234 12 Stocks2 40,165 75,467 n.a. 6,477 5,276 5,310 6,966 4,499 6,049 5,234 10,060 By type of offering 13 Public preferred n.a. 17,408 21,332 22,,441133 1,148 1,233 22,,990011 11,,554400 11,,660088 11,,111122 11,,889988 14 Common n.a. 47,860 57,099 4,064 4,129 4,077 4,065 2,958 4,441 4,122 8,161 15 Private placement3 16,736 10,109 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. By industry group 16 Manufacturing 5,649 24,154 n.a. 885577 713 307 1,779 288 11,,446688 772222 22,,661166 17 Commercial and miscellaneous 10,171 19,418 n.a. 1,599 1,315 602 940 1,366 2,226 1,688 2,021 18 Transportation 369 2,439 n.a. n.a. n.a. 59 53 304 118 65 64 19 Public utility 416 3,474 n.a. 564 921 595 359 150 92 310 350 70 Communication 3,822 475 n.a. n.a. n.a. 1,051 99 22 126 0 0 21 Real estate and financial 19,738 25,507 n.a. 3,457 2,327 2,695 3,735 2,369 2,019 2,438 5,009 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 • June 1993 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and-Assets Millions of dollars 1992 1993 IItteemm11 11999911rr 11999922 July Aug. Sept. Oct. Nov. Dec.r Jan. Feb. 1 Sales of own shares2 463,645 647,055 54,915 50,627 50,039 52,214 52,019 70,618 71,607 60,716 2 Redemptions of own shares 342,547 447,140 34,384 35,223 37,862 37,134 34,126 51,993 46,545 39,686 3 Net sales3 121,098 199,915 20,703 15,404 12,177 15,080 17,893 18,625 25,062 21,030 4 Assets4 808,582 1,056,310 951,806 957,145 978,507 983,151 1,019,618 1,056,310 1,082,653 1,116,652 5 Cash5 60,292 73,999 72,732 77,245 76,498 75,808 80,247 73,999 76,764 80,321 6 Other 748,290 982,311 879,074 879,900 902,009 907,343 939,371 982,311 1,005,889 1,036,331 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 ftmds 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. Excludes sales and redemptions resulting from transfers of shares into or out companies. 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 1991 1992 AAccccoouunntt 11999900 11999911 11999922 Q1 Q2 Q3 Q4 Ql Q2 Q3 Q4r 1 Profits with inventory valuation and capital consumption adjustment 361.7 346.3 394.5 349.6 347.3 341.2 347.1 384.0 388.4 374.1 428.5 2 Profits before taxes 355.4 334.7 372.3 337.6 332.3 336.7 332.3 366.1 376.8 354.1 389.4 3 Profits tax liability 136.7 124.0 140.5 121.3 122.9 127.0 125.0 136.4 144.1 131.8 148.5 4 Profits after taxes 218.7 210.7 231.8 216.3 209.4 209.6 207.4 229.7 232.7 222.2 241.0 5 Dividends 149.3 146.5 149.3r 150.6 146.2 145.1 143.9 143.6 146.6 151.1 155.9r 6 Undistributed profits 69.4 64.2 82.5 65.7 63.2 64.5 63.4 86.2 86.1 71.1 85.0 7 Inventory valuation -14.2 3.1 -7.4r 6.7 9.9 -4.8 .7 -5.4 -15.5 -9.7 1.0 8 Capital consumption adjustment 20.5 8.4 29.5r 5.3 5.1 9.3 14.1 23.3 27.0 29.7 38.1 SOURCE. U.S. Department of Commerce, Survey of Current Business. 1.50 NONFARM BUSINESS EXPENDITURES on New Plant and Equipment Billions of dollars; quarterly data at seasonally adjusted annual rates 1991 1992 1993 IInndduussttrryy 11999911 11999922 1199993311 Q3 Q4 Ql Q2 Q3 Q4 Ql Q21 1 Total nonfarm business 528.39 546.08 582.31 526.59 529.87 535.72 540.91 547.53 560.16 571.41 578.15 Manufacturing 2 Durable goods industries 77.64 73.41 77.11 74.94 76.40 74.19 74.26 71.84 73.34 80.68 77.62 3 Nondurable goods industries 105.17 100.50 106.24 102.55 102.66 99.79 97.52 100.39 104.28 103.01 103.48 Nonmanufacturing 4 Mining 10.02 8.90 9.32 10.09 9.99 88..8877 9.18 9.09 8.44 9.52 9.49 Transportation 5 Railroad 5.95 6.77 7.36 6.32 5.44 6.65 6.50 6.87 7.08 6.26 7.71 6 Air 10.17 8.97 7.10 9.61 10.41 8.86 9.75 10.13 7.13 7.36 9.10 7 Other 6.54 7.04 8.60 6.63 6.45 6.37 7.27 7.69 6.84 8.07 7.51 Public utilities 8 Electric 43.76 48.05 53.32 43.27 44.75 46.06 48.45 47.73 49.95 52.61 53.05 9 Gas and other 22.82 23.91 24.08 23.25 22.67 22.75 24.19 23.92 24.78 23.46 24.22 10 Commercial and other 246.32 268.54 289.18 249.94 251.11 262.17 263.80 269.86 278.32 280.44 285.98 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 Liabilities1 Billions of dollars, end of period; not seasonally adjusted 1991 1992 AAccccoouunntt 11999900 11999911 11999922 Q2 Q3 Q4 Qi Q2 Q3 Q4 ASSETS 1 Accounts receivable, gross2 492.9 480.3 482.1 488.5 484.7 480.3 475.7 476.8r 475.8 482.1 ? 133.9 121.9 117.1 127.5 125.3 121.9 118.4 116.7 116.6 117.1 3 293.5 292.6 296.5 295.2 293.2 292.6 291.6 293.7r 291.1 296.5 4 Real estate 65.5 65.8 68.4 65.7 66.2 65.8 65.8 66.4 68.1 68.4 5 LESS; Reserves for unearned income 57.6 55.1 50.8 58.0 57.6 55.1 53.6 51.2 50.8 50.8 6 Reserves for losses 9.6 12.9 15.8 11.1 13.1 12.9 13.0 12.3 12.0 15.8 7 Accounts receivable, net 425.7 412.3 415.5 419.3 414.1 412.3 409.1 413.3r 412.9 415.5 8 All other 113.9 149.0 150.6 122.8 136.4 149.0 145.5 139.4 146.5 150.6 9 539.6 561.2 566.1 542.1 550.5 561.2 554.6 552.7r 559.4 566.1 LIABILITIES AND CAPITAL 10 31.0 42.3 37.6 36.9 39.6 42.3 38.0 37.8 38.1 37.6 11 Commercial paper 165.3 159.5 156.4 156.1 156.8 159.5 154.4 147.7 153.2 156.4 Debt 12 Other short-term n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 13 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 14 Owed to parent 37.5 34.5 37.8 34.2 36.5 34.5 34.5 34.8 34.9 37.8 15 Not elsewhere classified 178.2 191.3 195.3 184.5 185.0 191.3 189.8 191.9 191.4 195.3 16 All other liabilities 63.9 69.0 71.2 67.1 68.8 69.0 72.0 73.4 73.7 71.2 17 Capital, surplus, and undivided profits 63.7 64.8 67.8 63.3 63.8 64.8 66.0 67.1 68.1 67.8 18 Total liabilities and capital 539.6 561.2 566.1 542.1 550.5 561.2 554.6 552.7R 559.4 566.1 1. Includes finance company subsidiaries of bank holding companies but not of 2. Before deduction for unearned income and losses, retailers and banks. Data are amounts carried on the balance sheets of finance companies; securitized pools are not shown since they are not on the books. 1.52 DOMESTIC FINANCE COMPANIES1 Consumer, Real Estate, and Business Credit Millions of dollars, amounts outstanding, end of period 1992 1993 TTyyppee ooff ccrreeddiitt 11999900 11999911 11999922rr Sept. Oct. Nov. Dec.r Jan. Feb. Seasonally adjusted 1 Total 523,023 519,573 531,864 527,858 527,323 529,232 531,864 526,254 528,395 2 Consumer.. 161,070 154,786 157,707 155,618 154,501 156,593 157,707 156,551 157,733 3 Real estate2 65,147 65,388 68,011 67,717 68,035 67,838 68,011 68,942 70,016 4 Business ... 296,807 299,400 306,146 304,523 304,787 304,801 306,146 300,761 300,646 Not seasonally adjusted 5 Total 526,441 522,853 535,158 524,999 526,874 528,895 535,158 525,847 525,490 6 Consumer 161,965 155,677 158,631 156,416 155,505 157,005 158,631 156,430 155,929 7 Motor vehicles 75,045 63,413 57,605 59,806 59,290 58,286 57,605 57,165 54,036 8 Other consumer3 58,818 58,488 59,522 56,808 57,013 58,128 59,522 58,844 58,651 9 Securitized motor vehicles4. 19,837 23,166 29,775 28,204 27,823 28,964 29,775 28,894 32,860 10 Securitized other consumer 8,265 10,610 11,729 11,598 11,379 11,626 11,729 11,527 10,383 11 Real estate2 65,509 65,764 68,410 68,064 68,477 68,016 68,410 68,889 69,216 12 Business 298,967 301,412 308,118 300,519 302,892 303,875 308,118 300,527 300,345 13 Motor vehicles 92,072 90,319 87,456 85,261 86,747 85,621 87,456 86,491 86,412 14 Retail5..., 26,401 22,507 19,303 20,407 20,763 19,708 19,303 19,124 17,881 15 Wholesale6 33,573 31,216 27,158 n.a. n.a. n.a. n.a. n.a. n.a. 16 Leasing 32,098 36,596 38,191 39,506 39,536 39,020 38,191 38,640 38,472 17 Equipment 137,654 141,399 151,607 147,319 147,146 148,202 151,607 146,820 145,886 18 Retail...., 31,968 30,962 32,212 31,571 31,475 31,427 32,212 32,458 32,430 19 Wholesale6 11,101 9,671 8,669 8,994 8,928 8,824 8,669 8,582 8,318 20 Leasing * 94,585 100,766 110,726 106,754 106,743 107,952 110,726 105,780 105,138 21 Other business7 63,774 60,887 57,464 58,493 58,898 59,269 57,464 55,760 55,962 22 Securitized business assets . 5,467 8,807 11,590 9,447 10,101 10,782 11,590 11,457 12,085 23 Retail 667 576 1,118 152 634 607 1,118 1,036 973 24 Wholesale 3,281 5,285 5,756 5,378 5,593 5,813 5,756 5,582 6,408 25 Leasing 1,519 2,946 4,716 3,917 3,874 4,362 4,716 4,839 4,704 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. SOEutRsta nding 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 • June 1993 1.53 MORTGAGE MARKETS Conventional Mortgages on New Homes Millions of dollars except as noted 1992 1993 IItteemm 11999900 11999911 11999922 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms1 1 Purchase price (thousands of dollars) 153.2 155.0 158.1 146.0 159.2 165.4 154.0 158.6 159.7 156.2 2 Amount of loan (thousands of dollars) 112.4 114.0 118.1 109.3 119.7 117.3 117.7 119.5 114.5 121.5 3 Loan-price ratio (percent) 74.8 75.0 76.6 77.0 77.3 75.3 77.7 76.8 75.4 79.3 4 Maturity (years) 27.3 26.8 25.6 25.7 25.2 24.9 26.1 25.7 23.8 26.9 5 Fees and charges (percent of loan amount) 1.93 1.71 1.60 1.52 1.42 1.54 1.31 1.49 1.43 1.50 6 Contract rate (percent per year) 9.68 9.02 7.98 7.68 7.65 7.81 7.65 7.57 7.52 7.22 Yield (percent per year) 7 OTS series3 10.01 9.30 8.25 7.93 7.90 8.07 7.88 7.82 7.77 7.46 8 HUD series4 10.08 9.20 8.43 7.95 8.29 8.38 8.19 7.93 7.63 7.59 SECONDARY MARKETS field (percent per year) 9 FHA mortgages (HUD series)5 10.17 9.25 8.46 8.06 8.29 8.54 8.12 8.04 7.55 7.57 10 GNMA securities6 9.51 8.59 7.77 7.31 7.53 7.90 7.57 7.39 7.02 6.79 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 113,329 122,837 142,833 144,904 149,133 153,306 158,119 159,204 159,766 161,147 12 FHA/VA-insured 21,028 21,702 22,168 22,275 22,399 22.372 22,593 22,640 22,573 22,700 13 Conventional 92,302 101,135 120,664 122,629 126,734 130,934 135,526 136,564 137,193 138,447 Mortgage transactions (during period) 14 Purchases 23,959 37,202 75,905 6,779 8,380 7,980 8,832 4,993 4,118 4,730 Mortgage commitments (during period)1 15 Issued 23,689 40,010 74,970 8,880 8,195 6,084 6,185 4,189 4,177 6,644 16 To sell9 5,270 7,608 10,493 148 0 237 1,811 1,159 221 0 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of periodf 17 Total 20,419 24,131 29,959 31,629 32,995 32,703 33,665 32,370 32,454 35,421 18 FHA/VA-insured 547 484 408 371 365 359 352 347 343 337 19 Conventional 19,871 23,283 29,552 31,259 32,630 32,343 33,313 32,023 32,112 35,084 Mortgage transactions (during period) 20 Purchases 75,517 97.727 191,125 16,391 20,199 19,607 20,792 15,512 12,063 12,587 21 73,817 92,478 179,208 14,267 18,771 19,154 19,602 16,536 12,105 10,286 Mortgage commitments (during period)10 22 Contracted 102,401 114,031 261,637 17,132 27,380 29,717 32,453 17,591 23,366 21,103 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. 1. 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 Type of holder and property 11998899 11999900 11999911 Q4 Ql Q2 Q3 1 AU holders 3,570,906 3,795,210 3,915,871 3,915,871 3,938,198 3,976,483 4,012,983 4 2 3 5 B O M C F y a o n u r m e t l m y - t m i p f t e a o e m r o f c o i f i l a u y l r p r - r f e o a s p m id e i r e l t y n y c r e e s s idences 2,4 7 3 2 8 5 0 4 4 4 7 , , , , 2 0 9 6 5 2 5 7 8 5 2 2 2,6 7 3 3 8 6 1 5 3 4 1 , , , , 4 9 1 7 2 5 1 1 8 3 3 6 2,7 3 7 6 8 1 5 4 2 0 8 , , , , 4 9 4 0 4 3 2 6 7 4 7 3 2,7 3 7 6 8 1 5 4 2 0 8 , , , , 4 4 0 9 4 2 6 3 7 7 3 4 2,7 3 7 9 8 1 5 0 2 0 4 , , , , 6 7 4 2 7 3 9 9 4 4 9 0 2,8 7 3 3 8 4 0 8 3 8 6 , , , , 7 2 0 4 3 1 3 % 2 8 8 2,8 7 3 8 9 3 0 3 3 0 5 , , , , 0 6 8 3 8 7 7 4 3 9 9 2 2 2 1 1 1 1 1 1 1 1 1 1 1 6 0 7 9 8 0 1 2 3 4 5 7 8 9 6 B M y a C L S j t a i o y o C M f C O F O O M C M F F v p r m e a e i a a o o o n n n n u u u f m r i r r m m m i e e e n l g l l m m n m o - t - t - t e s s m m m i a i f i r u f f f t t t n a a i a c o o o e e e r n c h m m i m r r r a a i s f f f o c c c a n o o l t o i i i l i i i l l l i l c d u u a u a a y y y t b e e l u l i l r r r a n r - - - t c n f f f s i a o a a o t k i m n m m m s t s u i i i p l l l t y y y a io n n i s e s 1, 7 6 9 3 3 2 9 2 1 1 6 1 6 8 3 2 5 3 2 0 1 0 1 3 7 0 9 9 1 9 1 4 6 8 5 6 6 2 4 , , , , , , , , , , , , , , , 0 5 2 6 9 2 2 6 9 8 2 4 0 6 6 3 3 3 6 5 0 1 3 2 0 7 0 1 7 5 5 7 7 2 9 4 6 4 1 0 7 6 4 4 2 6 0 0 1, 8 3 8 6 9 4 2 2 1 9 3 0 4 0 3 1 5 6 1 2 0 1 1 1 1 4 1 4 0 4 5 7 5 7 8 7 3 9 0 , , , , , , , , , , , , , , , 6 6 9 8 1 3 8 0 8 1 2 9 0 1 7 5 3 6 2 4 2 1 1 0 2 5 3 0 6 5 7 0 1 1 1 8 8 5 5 6 6 4 1 5 8 6 9 0 1, 8 4 3 7 5 2 2 8 7 7 8 3 3 8 0 3 6 1 4 2 1 1 1 6 9 6 3 6 7 5 8 5 4 6 9 1 0 8 , , , , , , , , , , , , , , , 8 2 7 3 5 8 4 3 2 1 9 5 5 0 4 3 8 4 8 6 5 5 7 5 0 2 1 4 4 6 3 8 1 1 4 7 8 8 2 2 5 4 0 7 4 2 6 8 1, 8 4 3 7 5 2 2 8 3 7 8 3 7 0 3 1 6 4 8 2 1 1 1 3 9 6 6 7 5 8 4 5 6 9 6 1 8 0 , , , , , , , , , , , , , , , 8 8 2 3 5 4 7 3 1 5 2 9 5 4 0 3 8 5 6 4 8 5 7 2 0 6 1 4 5 4 3 8 1 2 7 1 4 8 2 4 5 2 0 7 8 4 6 8 1, 8 4 3 6 5 2 2 8 8 9 3 7 3 2 8 1 2 6 8 2 1 1 0 7 2 7 0 9 5 2 2 4 3 9 0 8 1 , , , , , , , , , , , , , , , 3 1 9 8 4 3 8 9 6 2 7 5 2 9 2 3 7 8 3 6 9 3 6 9 7 1 3 1 6 1 1 5 7 3 7 6 7 8 5 3 8 0 6 0 9 4 9 8 1, 8 4 3 6 5 2 2 8 7 8 9 3 7 0 3 5 0 5 1 2 1 1 4 4 6 5 8 8 9 0 3 9 9 0 9 0 9 , , , , , , , , , , , , , , , 7 5 5 5 9 3 4 2 6 0 2 4 1 6 5 3 8 9 4 4 1 8 2 1 2 6 2 2 3 7 3 4 8 8 5 7 8 8 9 4 4 6 6 5 9 6 8 5 1, 8 7 5 3 6 5 2 2 9 3 9 0 4 2 0 5 0 7 7 2 1 1 1 8 3 6 8 5 1 3 2 3 5 8 8 0 9 . . , , , , , , , , . , , , , 4 5 9 6 1 9 6 5 7 8 8 8 7 4 3 9 8 0 8 5 7 1 2 3 0 4 5 0 7 0 3 0 4 5 5 8 8 7 3 4 4 3 1 4 8 9 4 6 2 2 2 2 4 2 3 5 Fe G de o O M r v a n e u l r e l a n - t i n m f t d a o e m n r fo e i t l u l y a N r t - a e f d t a i m o a n i g l a y e l n M cie o s r tgage Association 197,77 2 2 8 3 3 0 239,00 2 2 3 0 0 0 266,15 1 1 6 0 9 9 266,15 1 1 6 0 9 9 278,3% 1 1 0 9 9 278,13 2 2 1 3 3 0 277.48 2 2 5 7 7 0 2 2 3 3 2 2 3 3 3 3 3 3 7 8 1 7 6 9 0 4 5 6 2 3 R F F a e e O M C O C F M M O d r s m o a e o o n n n u u u r l r m m e e e e u l l l a m - t - - t t r t l m m i i i s i f f f t t t o a H a a o o o e e H n m m m r r o f f f c c o o o i u o i T i i i l m l l u u a a u y s y y r l i l r r r e u n - - - s f f g f A t a a a m m m d a C n m i o i i d l l l r y y i y n p V i o s e r t t a r e a t r i t o a i n o n n s ' Administrations 4 1 1 9 9 6 2 4 3 8 , , , , , , , , 2 0 8 0 1 4 2 4 5 8 7 5 7 4 1 2 7 7 5 4 6 3 2 2 0 0 0 0 4 3 1 1 1 9 4 8 8 5 8 8 2 3 8 5 , , , , , , , , , , , , 8 4 6 6 5 7 2 5 0 5 6 8 0 3 4 2 9 9 8 3 0 6 0 0 1 9 0 7 0 3 2 6 8 4 0 0 4 4 1 1 1 1 1 1 1 4 4 5 8 6 0 8 4 0 5 6 , , , , , , , , , , , , 7 9 1 1 8 0 6 5 7 4 0 2 7 0 1 4 2 3 9 3 3 9 1 6 1 5 3 1 2 5 7 3 6 6 8 9 4 4 1 1 1 1 1 1 1 5 4 8 4 6 0 0 4 8 5 6 , , , , , , , , , , , , 7 1 9 6 1 8 0 7 5 4 0 2 7 1 0 4 9 3 2 3 3 9 1 6 1 3 5 1 7 3 2 5 6 6 8 9 4 4 1 1 1 1 1 1 1 4 9 4 8 7 5 1 8 0 7 6 , , , , , , , , , , , , 7 3 9 2 0 0 4 6 3 4 2 2 9 4 6 7 2 5 7 5 3 8 7 6 1 5 1 8 1 8 2 4 2 8 0 6 4 4 1 1 1 1 1 1 4 1 4 4 8 7 0 7 5 1 3 6 , , , , , . , , , , , , 4 6 6 0 9 5 3 7 0 4 3 2 7 2 2 9 0 5 5 1 3 8 1 7 7 8 4 8 3 7 6 8 2 0 6 6 0 4 3 1 1 1 1 1 1 1 8 4 7 5 7 0 1 7 2 1 3 , , , , , , , , , , , , 6 5 8 0 4 0 2 7 2 6 1 3 7 3 3 7 6 6 9 9 3 1 3 5 1 1 9 2 8 8 2 9 6 4 0 6 0 4 4 4 4 4 4 4 3 3 4 2 6 7 0 1 4 5 8 9 3 F F F e e e M O O O F d M F d d e a e e a n n n u u r r r r r e e e l a m a l a m - t - - t l l l i i f f t t t L N H a a o o o m m a a o f f f n t o o o i m i i l d l u u u y o y e r r r n B - - - a L f f f a l a a a o n m m m M a k n i i i s o l l l y y y r M tg o a r g t e g a A ge s s C oc o i r a p t o io r n a tion 9 9 2 2 2 1 9 0 9 3 8 1 8 1 8 , , , , , , , , , 0 8 5 6 6 4 4 2 2 0 5 7 4 0 2 4 3 1 1 1 5 0 3 6 8 0 0 0 1 9 2 2 2 0 1 1 4 9 2 7 1 0 4 9 1 , , , , , , , , , 3 4 5 8 6 5 8 1 8 2 1 7 5 7 4 8 7 3 3 6 7 7 2 7 5 0 8 0 1 1 2 2 2 2 1 1 0 8 4 6 7 2 2 0 1 1 , , , , , , , , , 7 1 8 0 2 6 3 8 6 7 2 8 0 8 8 8 9 9 7 5 3 9 4 7 4 6 3 0 1 1 2 2 2 2 1 0 1 4 8 6 7 2 2 0 1 1 , , , , , , , , , 1 7 8 0 2 3 6 6 8 2 7 8 8 0 8 9 9 8 5 7 3 7 9 4 3 6 4 0 1 1 2 2 2 2 1 0 1 8 8 2 6 7 8 5 1 2 , , , , , , , , , 8 7 7 1 0 2 8 6 3 9 7 8 1 8 3 6 9 6 5 6 2 3 3 8 9 3 9 0 1 1 2 2 2 2 2 1 1 8 2 8 6 7 2 0 2 1 , , , , , , , , , 7 6 0 9 2 7 6 6 0 7 8 2 7 2 9 5 2 0 5 2 0 9 3 3 6 1 1 1 1 2 2 2 3 2 1 1 8 9 2 7 1 6 3 3 1 , , , , , , , , , 8 5 0 4 1 6 6 4 0 1 9 7 3 9 1 2 0 6 5 1 6 9 5 9 9 7 9 4 4 5 5 5 5 5 6 5 5 5 5 6 6 6 6 6 5 6 8 9 2 0 1 5 6 0 3 4 7 9 1 2 3 4 6 8 5 Mo G F F F P r e e a r o t O O O O M C O M d M M d F C M i r g v v m e e a a o n n e n n o n a u u u u u r r g r r m m e e e e e t e l a l l l a l m e n e - - - - t - t t t t r l l m m i i i i i m s f f f f t t t t f t p m N H a a o o o a a o o a e e o H e m m m m m o r r a o n o f f f f f c c r o t o o o o m o i i t i i l i i i i t l l s l l m l u u u u u a o a y y g y y y e N r l r r l r n r a o e - - - - - a g r a L f f f f f t A e l a a a a a o i t m m m m o m r d M a c n u m n o i i i i i l a o s l l l l n y y y y y i t l r M n d s t 5 M i u g o s a i t r t o r g t s r a g e t t a g i A g o a e s n g s e 4 C o c A o i r a s p s t o o io r c n a ia ti t o io n n 9 3 2 2 2 3 2 6 1 5 7 6 8 7 5 2 1 8 9 6 88 4 2 1 2 6 7 8 8 0 , , ,, , , , , , , , , , , 3 1 66 5 2 8 7 8 0 5 1 2 2 4 6 9 55 7 1 4 3 4 7 6 1 2 1 6 88 2 2 3 7 1 55 7 7 2 2 0 0 0 0 5 2 0 2 00 1 6 3 1, 4 3 2 2 1 3 3 0 9 9 0 9 9 1 9 1 1 3 0 9 8 1 7 8 6 1 6 6 5 2 , , , , , , , , , , , , , 6 5 8 5 6 3 1 4 9 6 3 1 1 7 8 1 0 3 6 8 9 5 9 3 0 5 6 3 6 2 2 1 1 3 5 3 9 4 4 2 0 9 8 9 6 1 0 6 4 6 7 1, 4 4 3 3 3 3 2 1 1 2 1 6 5 5 7 7 0 1 5 9 5 2 7 9 6 9 1 1 0 3 4 4 , , , , , , , , , , , , , , 2 5 7 2 3 6 1 9 9 4 8 6 3 1 9 2 5 1 6 6 6 0 8 6 9 7 7 % 4 1 1 1 5 8 7 7 7 7 3 6 4 2 8 9 3 0 7 1 9 7 1, 4 4 3 3 3 2 3 1 1 2 1 6 5 5 7 7 1 0 5 9 7 9 6 5 2 9 0 1 3 1 4 4 , , , , , , , , , , , , , , 2 2 3 5 8 7 6 1 9 4 6 9 3 1 9 5 1 2 6 6 6 6 0 8 9 7 7 % 4 1 1 1 5 7 7 8 2 7 7 3 6 4 8 9 3 0 7 1 9 7 1, 4 4 3 3 2 3 3 1 2 1 9 6 8 8 8 6 0 1 2 0 5 0 9 6 9 4 8 8 9 7 9 , , , , , , , , , , , , , , 8 9 9 5 8 6 8 6 6 8 4 7 2 0 8 9 7 2 1 7 5 7 0 8 7 0 8 3 4 1 1 1 7 1 7 3 7 4 3 8 0 6 1 4 4 6 0 3 0 8 6 1, 4 4 4 3 4 3 3 1 1 1 2 1 7 0 4 8 2 0 1 3 2 3 6 9 6 9 1 3 2 5 2 5 0 , , , , , , , , , , , , , , 8 1 9 2 7 6 0 3 2 9 8 3 7 7 2 7 2 9 2 3 2 9 8 5 4 5 0 % 4 1 1 8 7 2 7 6 8 0 4 6 5 0 0 0 0 3 0 9 8 5 1, 4 4 4 4 3 3 3 1 1 2 2 2 1 8 9 8 4 2 1 2 9 9 0 3 9 6 5 5 1 5 1 3 2 , , , , , , , , , , , , , , 2 5 8 1 0 4 1 3 7 4 4 0 6 7 5 3 3 0 6 6 0 9 6 6 6 0 7 % 4 1 1 5 5 5 0 3 2 0 2 2 8 0 0 3 1 9 0 0 8 4 67 Farm 0 0 0 0 0 6 6 7 7 7 9 8 0 1 2 Ind O F M C i a n o v u r m i e l m d - t m i u f t a a o e l m r s f c o i a i l u a y n r l d - fa o m th i e ly r s6 4 3 8 8 8 0 1 9 5 4 0 9 , , , , , 8 4 8 2 3 5 2 0 2 9 1 7 5 4 5 5 3 8 8 3 2 1 7 7 1 5 9 , , , , , 7 4 2 0 4 1 8 0 4 4 3 2 0 5 0 5 3 8 9 3 3 1 7 5 0 1 8 , , , , , 3 1 6 9 7 3 2 9 4 9 1 4 3 3 5 5 3 8 9 3 3 1 7 0 5 1 8 , , , , , 3 1 6 9 7 3 2 9 4 9 1 4 3 3 5 5 3 8 9 4 4 1 6 8 0 4 8 , , , , , 9 9 4 9 7 1 2 2 % 3 7 5 4 0 3 5 1 8 4 5 0 1 6 8 3 0 8 , , , , , 5 2 0 5 6 9 4 3 2 5 1 5 5 6 6 5 3 8 9 5 5 1 8 7 1 6 8 , . , , , 9 8 2 5 5 2 0 1 8 3 2 5 7 8 2 1. Based on data from various institutional and governmental sources; figures 5. Outstanding principal balances of mortgage-backed securities insured or for some quarters estimated in part by the Federal Reserve. Multifamily debt guaranteed by the agency indicated. refers to loans on structures of five or more units. 6. Other holders include mortgage companies, real estate investment trusts, 2. Includes loans held by nondeposit trust companies but not loans held by state and local credit agencies, state and local retirement funds, noninsured bank trust departments. pension funds, credit unions, and finance companies. 3. Includes savings banks and savings and loan associations. 4. FmHA-guaranteed securities sold to the Federal Financing Bank were reallocated from FmHA mortgage pools to FmHA mortgage holdings in 1986:4 because of accounting changes by the Farmers Home Administration. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Nonfinancial Statistics • June 1993 1.55 CONSUMER INSTALLMENT CREDIT1 Millions of dollars, amounts outstanding, end of period 1992 1993 HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt 11999900 11999911 11999922rr Sept. Oct. Nov. Dec.r Jan. Feb. Seasonally adjusted 1 Total 735,338 727,799 726,653 722,104 722,372 723,448 726,653 727,647 728,815 2 Automobile 284,993 263,003 260,097 257,384 256,846 257,740 260,097 259,720 260,763 3 Revolving.. 222,950 242,785 251,258 250,017 250,454 250,620 251,258 252,785 255,177 4 Other 227,395 222,012 215,298 214,703 215,071 215,088 215,298 215,143 212,876 Not seasonally adjusted 5 Total 748,524 742,058 741,381 724,198 722,760 725,178 741,381 732,490 726,265 By major holder 6 Commercial banks 347,087 339,565 329,603 324,046 324,697 324,529 329,603 326,807 324,358 7 Finance companies 133,863 121,901 117,086 116,650 116,304 116,414 117,086 116,059 112,687 8 Credit unions 93,057 92,254 92,648 92,698 92,228 91,838 92,648 92,381 91,777 9 Retailers 44,822 44,030 44,952 38,778 39,299 39,539 44,952 42,585 40,671 10 Savings institutions 46,969 40,315 33,861 35,069 34,148 34,171 33,861 33,902 33,754 11 Gasoline companies 4,822 4,362 4,365 4,499 4,452 4,365 4,365 4,366 4,148 12 Pools of securitized assets2 77,904 99,631 118,866 112,458 111,632 114,322 118,866 116,390 118,870 By major type of credit3 13 Automobile 285,050 263,108 260,227 260,395 259,055 258,539 260,227 258,473 258,833 14 Commercial banks 124,913 111,912 108,581 108,355 108,068 107,675 108,581 108,432 108,580 15 Finance companies 75,045 63,413 57,604 59,806 59,290 58,286 57,604 57,165 54,036 16 Pools of securitized assets 24,428 28,057 33,593 31,971 31,757 32,672 33,593 32,388 35,930 17 Revolving 235,056 255,895 264,801 248,692 248,526 251,422 264,801 257,992 254,258 18 Commercial banks 133,385 137,968 132,921 127,234 127,257 128,164 132,921 129,056 127,252 19 Retailers 40,003 39,352 40,064 34,148 34,654 34,857 40,064 37,719 35,815 20 Gasoline companies 4,822 4,362 4,365 4,499 4,452 4,365 4,365 4,366 4,148 21 Pools of securitized assets2 44,335 60,139 72,695 68,252 67,699 69,415 72,695 71,927 72,024 22 Other 228,418 223,055 216,353 215,111 215,179 215,217 216,353 216,025 213,174 23 Commercial banks 88,789 89,685 88,101 88,457 89,372 88,690 88,101 89,319 88,526 24 Finance companies 58,818 58,488 59,482 56,844 57,014 58,128 59,482 58,894 58,651 25 Retailers 4,819 4,678 4,888 4,630 4,645 4,682 4,888 4,866 4,856 26 Pools of securitized assets2 9,141 11,435 12,578 12,235 12,176 12,235 12,578 12,075 10,916 1. The Board's series on amounts of credit covers most short- and 2. Outstanding balances of pools upon which securities have been issued; these intermediate-term credit extended to individuals that is scheduled to be repaid (or balances are no longer carried on the balance sheets of the loan originator. has the 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 1992 1993 IItteemm 11999900 11999911 11999922 Aug. Sept. Oct. Nov. Dec. Jan. Feb. INTEREST RATES Commercial banks2 1 48-month new car 11.78 11.14 9.29 9.15 n.a. n.a. 8.60 n.a. n.a. 8.57 2 24-month personal 15.46 15.18 14.04 13.94 n.a. n.a. 13.55 n.a. n.a. 13.57 3 120-month mobile home 14.02 13.70 12.67 12.57 n.a. n.a. 12.36 n.a. n.a. 12.38 4 Credit card 18.17 18.23 17.78 17.66 n.a. n.a. 17.38 n.a. n.a. 17.26 Auto finance companies 5 New car 12.54 12.41 9.93 8.88 8.65 9.51 9.65 9.65 10.08 10.32 6 Used car 15.99 15.60 13.80r 13.49 13.44 13.37 13.37 13.66r 13.72 13.90 OTHER TERMS3 Maturity (months) 7 New car 54.6 55.1 54.0 53.6 53.3 54.1 54.1 53.6 53.9 54.3 8 Used car 46.0 47.2 47.9" 47.9 47.7 47.9 47.8 47.7r 49.2 49.0 Loan-to-value ratio 9 New car 87 88 89 90 90 89 89 90 90 91 10 Used car 95 96 97 97 97 97 97 97 97 98 Amount financed (dollars) 11 New car 12,071 12,494 13,584r 13,745 13,889 13,885 14,043 14,315r 13,975 13,849 12 Used car 8,289 8,884 9,119r 9,238 8,402 9,373 9,475 9,464r 9,472 9,457 1. Data in this table also appear in the Board's G.19 (421) monthly statistical 2. Data are available for only the second month of each quarter, release. For ordering address, see inside front cover. 3. At auto finance companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A39 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1 Billions of dollars; quarterly data at seasonally adjusted annual rates 1991 1992 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr Q2 Q3 Q4 QI Q2" Q3" Q4 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors .. 775.8 740.8 665.0 442.7r 587.4 534.4" 401.4" 371.1" 687.5" 583.0 476.0 603.2 By sector and instrument 7 U.S. government 155.1 146.4 246.9 278.2 304.0 276.7 288.4 320.4 368.9 351.9 119933..44 330011..77 Treasury securities 137.7 144.7 238.7 292.0 303.8 282.9 317.2 316.6 380.1 351.5 184.4 299.1 4 Agency issues and mortgages 17.4 1.6 8.2 -13.8 .2 -6.2 -28.8 3.8 -11.2 .4 9.0 2.7 5 Private 620.7 594.4 418.2 164.4R 283.5 257.7" 113.0" 50.7" 318.6" 231.1 282.6 301.5 By instrument 6 Debt capital instruments 474.1 441.8 342.3 244.7" 280.4 321.0" 177.8" 175.4" 333.0" 267.1 253.7 226677..99 7 Tax-exempt obligations 53.7 65.0 51.2 45.8 53.3 48.5 53.5 45.5 52.0 73.0 52.3 35.9 8 Corporate bonds 103.1 73.8 47.1 78.8 66.3 96.5 81.6" 60.2" 76.3 77.5 61.3 50.3 9 Mortgages 317.3 303.0 244.0 120. lr 160.8 175.9" 42.6" 69.7" 204.8" 116.6 140.1 181.7 10 Home mortgages 241.8 245.3 219.4 129.0" 198.5 147.3" 118.6" 93.0" 221.5" 155.5 202.8 214.2 11 Multifamily residential 16.7 16.4 3.7 -.9" -8.3 12.7" -31.0" 8.0" .0" -17.9 -2.7 -12.7 1? Commercial 60.8 42.7 21.0 -7.3R -29.9 16.6" -42.6" -31.4" -15.7" -23.2 -61.8 -18.8 N Farm -2.1 -1.5 -.1 -.8 .5 -.6" -2.4" .0 -1.0" 2.2 1.8 -1.0 14 Other debt instruments 146.6 152.6 75.8 -80.2 3.0 -63.3 -64.8 -124.7 -14.4 -36.0 28.8 33.6 IS Consumer credit 50.1 41.7 17.5 -12.5 2.4 -7.8 -24.0 -8.0 3.1 -12.4 .4 18.8 16 Bank loans n.e.c 41.0 40.2 4.4 -33.4 -16.8 -34.5 -18.2 -66.1 -26.9 -21.5 -3.2 -15.4 17 Open market paper 11.9 21.4 9.7 -18.4 9.8 -15.9 -36.3 -7.0 12.6 -3.4 1.7 28.4 18 Other 43.6 49.3 44.2 -15.8 7.5 -5.2 13.7 -43.6 -3.2 1.3 30.0 1.9 By borrowing sector 19 State and local government 48.9 63.2 48.3 38.5 48.1 38.6 37.6 41.9 46.1 63.4 5500..00 3322..99 70 Household 318.6 305.6 254.2 144.9" 215.1 178.0" 132.3" 104.2" 229.0" 177.2 220.7 233.7 71 Nonfinancial business 253.1 225.6 115.6 -18.9" 20.2 41.1" -56.9" -95.4" 43.6" -9.4 11.9 34.9 ?? Farm -7.5 1.6 2.5 .9 .9 2.2" -.2" -2.2 -1.6 6.6 1.0 -2.3 23 Nonfarm noncorporate 61.8 50.4 26.7 -23.6 -34.2 9.8 -65.9 -51.5 -20.7 -50.6 -40.3 -25.2 24 Corporate 198.8 173.6 86.4 3.7R 53.5 29.1" 9.2" -41.7" 65.9" 34.7 51.1 62.4 25 Foreign net borrowing in United States 6.4 10.2 23.9 14.1 24.1 -63.2 15.6 41.0 9.9 55.2 30.6 ..88 76 Bonds 6.9 4.9 21.4 14.9 18.5 10.6 15.5 22.3 4.9 21.9 22.3 2255..11 27 Bank loans n.e.c -1.8 -.1 -2.9 3.1 1.6 -3.5 1.4 6.5 1.5 14.1 3.9 -13.2 28 Open market paper 8.7 13.1 12.3 6.4 5.2 -51.9 16.0 14.9 -7.8 27.7 12.8 -11.9 29 U.S. government loans -7.5 -7.6 -6.9 -10.2 -1.2 -18.3 -17.2 -2.7 11.4 -8.5 -8.4 .7 30 Total domestic plus foreign 782.2 750.9 688.9 456.8" 611.6 471.2" 417.0" 412.1" 697.4" 638.2 506.6 604.0 Financial sectors 31 Total net borrowing by financial sectors 211.4 220.1 187.1 131.5" 223.3 106.0" 143.8" 165.6" 159.5" 241.6 265.2 227.0 By instrument 37 U.S. government-related 119.8 151.0 167.4 150.0" 167.1 129.4" 156.0" 158.5" 137.4" 222.8 165.6 142.7 33 Sponsored-credit-agency securities 44.9 25.2 17.1 9.2 40.2 -29.7 20.6 32.6 11.5 48.3 67.7 33.5 34 Mortgage pool securities 74.9 125.8 150.3 140.9" 126.9 159.0" 135.5" 125.9" 125.9" 174.4 97.9 109.2 35 Loans from U.S. government .0 .0 -.1 .0 .0 .0 .0 -.1 .0 .0 .0 .0 36 Private 91.7 69.1 19.7 -18.6" 56.2 -23.4 -12.3" 7.1" 22.1" 18.9 99.6 84.3 37 Corporate bonds 16.2 46.8 34.4 47.7" 50.0 72.4 29.5 47.5" 14.9" 25.5 59.8 99.9 38 Mortgages .3 .0 .3 .6 .3 .9 .4" .8" .9 .1 .3 .1 39 Bank loans n.e.c .6 1.9 1.2 3.2 7.2 -2.9 10.2 4.5 8.2 3.9 5.4 11.1 40 Open market paper 54.8 31.3 8.6 -32.0 -2.1 -46.0 -16.7 -12.7 7.6 -16.3 12.8 -12.6 41 Loans from Federal Home Loan Banks 19.7 -11.0 -24.7 -38.0 .8 -47.7 -35.7 -33.0 -9.5 5.7 21.3 -14.2 By borrowing sector 42 Sponsored credit agencies 44.9 25.2 17.0 9.1 40.2 -29.7 20.6 32.5 11.5 48.3 67.7 33.5 43 Mortgage pools 74.9 125.8 150.3 140.9" 126.9 159.0" 135.5" 125.9" 125.9" 174.4 97.9 109.2 44 Private 91.7 69.1 19.7 -18.6" 56.2 -23.4 -12.3" 7.1R 22.1" 18.9 99.6 84.3 45 Commercial banks -3.0 -1.4 -1.1 -13.3 4.5 -11.7 -9.2 -14.1 7.2 .8 1.6 8.2 46 Bank affiliates 5.2 6.2 -27.7 -2.5 1.1 -3.5 -6.8 9.6 2.7 -8.2 10.5 -.4 47 Savings and loan associations 19.9 -14.1 -29.9 -39.5 -4.6 -48.7 -41.1 -25.1 -20.3 2.7 10.0 -10.6 48 Mutual savings banks 1.9 -1.4 -.5 -3.5 1.7 -1.7 -5.5 -8.7 4.3 .3 8.3 -6.2 49 Finance companies 31.5 59.7 35.6 4.5" 14.3 3.4 12.2 12.9" 1.0" -20.9 28.9 48.0 50 Real estate investment trusts (REITs) 3.6 -1.9 -1.9 .0 1.8 .1 -.3" .1" 4.6 .9 1.3 .5 51 Securitized credit obligation (SCO) issuers 32.5 22.0 45.2 35.6 37.4 38.7 38.5 32.3 22.5 43.2 39.1 44.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic NonfinancialS tatistics • June 1993 1.57—Continued 1991 1992 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998888 11998899 11999900 11999911 11999922 Q2 Q3 Q4 Ql Q2" Q3r Q4 All sectors 5522 TToottaall nneett bboorrrroowwiinngg,, aallll sseeccttoorrss 993.6 971.0 876.0 588.3r 834.9 577.2r 560.8r 577.7r 856.9* 879.8 771.8 831.0 5533 UU..SS.. ggoovveerrnnmmeenntt sseeccuurriittiieess 274.9 297.3 414.4 428.3r 471.1 406. lr 444.4r 479.0" 506.3" 574.7 359.0 444.4 5544 SSttaattee aanndd llooccaall oobblliiggaattiioonnss 53.7 65.0 51.2 45.8 53.3 48.5 53.5 45.5 52.0 73.0 52.3 35.9 5555 CCoorrppoorraattee aanndd ffoorreeiiggnn bboonnddss 126.3 125.5 102.9 141.3r 134.9 179.5 126.7r 130.0" 96.0" 124.9 143.4 175.3 5566 MMoorrttggaaggeess 317.5 303.0 244.3 120.7r 161.1 176.9" 43.0" 70.5" 205.7" 116.7 140.3 181.8 5577 CCoonnssuummeerr ccrreeddiitt 50.1 41.7 17.5 -12.5 2.4 -7.8 -24.0 -8.0 3.1 -12.4 .4 18.8 5588 BBaannkk llooaannss nn..ee..cc 39.9 41.9 2.8 -27.1 -8.0 -40.9 -6.7 -55.1 -17.2 -3.5 6.1 -17.5 5599 OOppeenn mmaarrkkeett ppaappeerr 75.4 65.9 30.7 -44.0 12.9 -113.8 -37.0 -4.9 12.4 8.1 27.3 3.9 6600 OOtthheerr llooaannss 55.8 30.6 12.4 -64.2 7.1 -71.2 -39.1 -79.3 -1.3 -1.6 43.0 -11.6 External corporate equity funds raised in United States 61 Total net share issues -118.4 -65.7 22.1 198.8 272.1 182.3 232.5r 268.2r 230.3r 291.7 288.6 277.7 62 Mutual funds 6.1 38.5 67.9 150.5 206.4 125.6 182.5 195.9 148.4" 236.3 233.3 207.5 63 All other -124.5 -104.2 -45.8 48.3 65.7 56.7 50.0" 72.3" 81.9 55.4 55.3 70.2 64 Nonfinancial corporations -129.5 -124.2 -63.0 18.3 26.8 12.0 19.0 48.0 46.0 36.0 11.0 14.0 65 Financial corporations 4.1 2.7 9.8 -.1 7.4 8.1 -3.2" 1.4" 6.0 8.4 8.1 7.3 66 Foreign shares purchased in United States .9 17.2 7.4 30.2 31.5 36.6 34.1 22.9 29.9 11.0 36.2 48.9 1. Data in this table also appear in the Board's Z. 1 (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 1991 1992 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11998888 11998899 11999900 11999911 11999922 Q2 Q3 Q4 QLR Q2R Q3R Q4 NET LENDING IN CREDIT MARKETS2 1 Total net lending in credit markets 993.6 971.0 876.0 588.3R 834.9 577.2R 560.8R 577.7R 856.9 879.8 771.8 831.0 ? Private domestic nonfinancial sectors 226.2 209.6 203.8 10.5R 60.6 187.7R -143.2R -59.7R 206.5 120.6 -162.8 78.0 Households 198.9 179.5 172.3 -24.8R 65.8 171.3R -185.8R -105^ 227.2 111.3 -160.3 84.9 4 Nonfarm noncorporate business 3.1 -.8 -1.4 -1.9 -2.1 -2.0 -1.6 -2.1 -1.9 -2.5 -1.9 -1.9 5 Nonfinancial corporate business 5.7 12.9 6.6 20.9 8.4 29.0 32.2 30.1 -2.7 8.4 15.4 12.5 6 State and local governments 18.6 17.9 26.2 16.3 -11.5 -10.6 12.1 18.2 -16.1 3.4 -15.9 -17.6 7 U.S. government -10.6 -3.1 33.7 10.0 -12.4 24.8 -2.1 -17.9 13.9 -24.9 -26.8 -12.0 8 96.3 74.1 58.4 42.6R 97.6 51.4 37.3 71.0 88.4 138.4 64.2 99.6 9 681.8 690.4 580.2 525. LR 689.1 313.3R 668.7R 584.3R 548.0 645.6 897.2 665.5 10 Sponsored credit agencies 37.1 -.5 16.4 14.2 62.7 -25.2R 35.8R 18.6R 93.0 40.0 76.4 41.6 11 Mortgage pools 74.9 125.8 150.3 140.9R 126.9 159.0R 135.5R 125.9R 125.9 174.4 97.9 109.2 1? Monetary authority 10.5 -7.3 8.1 31.1 27.9 -4.0 48.1 22.3 33.2 9.8 10.8 57.8 N Commercial banking 157.1 176.8 125.4 84.0 90.7 34.7 82.4 104.3 98.9 58.4 157.4 48.1 14 U.S. commercial banks 127.1 145.7 95.2 38.9 69.2 6.4 26.5 45.6 91.9 .5 132.0 52.4 IS Foreign banking offices 29.4 26.7 28.4 48.5 14.5 33.7 56.7 61.3 .6 58.6 6.5 -7.6 16 Bank affiliates -.1 2.8 -2.8 -1.5 6.7 -2.6 2.4 -1.1 6.4 -.6 18.5 2.5 17 Banks in U.S. possession .7 1.6 4.5 -1.9 .3 -2.8 -3.3 -1.5 .0 -.1 .4 ..88 18 Private nonbank finance 402.2 395.7 279.9 255.0R 380.9 148.8R 367.0R 313. lr 197.0 362.9 554.7 440088..88 19 Thrift institutions 119.0 -91.0 -151.9 -144.9 -63.8 -164.8 -176.8 -49.7 -113.3 -81.6 -41.9 -18.5 70 Savings and loan associations 87.4 -93.9 -143.9 -140.9 -77.0 -144.0 -156.3 -83.3 -137.9 -92.4 -38.5 -39.1 71 Mutual savings banks 15.3 -4.8 -16.5 -15.5 -2.8 -31.1 -30.8 11.5 7.6 -7.4 -13.0 1.5 77 Credit unions 16.3 7.7 8.5 11.5 16.0 10.2 10.3 22.2 17.0 18.3 9.6 19.0 ?3 186.2 207.7 188.5 218.7R 184.9 216.3r 257. lr 156.5r 114.2 183.6 227.8 213.9 74 Life insurance companies 103.8 93.1 94.4 83.2 94.9 132.8 73.8 13.2 80.6 81.9 96.5 120.4 7*> Other insurance companies 29.2 29.7 26.5 34.7 17.3 37.0 36.8 32.1 33.1 22.2 2.5 11.2 76 Private pension funds 18.1 36.2 16.6 63^ 37.8 -2.5r 113.lr 94.2r -28.7 49.5 90.5 39.7 ?7 State and local government retirement funds. 35.1 48.7 51.0 37.0 35.0 49.0 33.4 17.0 29.2 30.0 38.2 42.6 78 Finance n.e.c 96.9 278.9 243.3 181.3R 259.8 97.4 286.7r 206.3r 196.1 260.9 368.9 213.4 79 Finance companies 49.2 69.3 41.6 -23.lr 20.8 -14.5 -5.2 -54.1r 40.8 -23.0 14.2 51.2 30 Mutual funds 11.9 23.8 41.4 90.3 123.6 75.3 117.1 124.8 64.0 169.1 150.7 110.4 31 Money market funds 10.7 67.1 80.9 30.1 2.5 -68.9 1.1 53.8r 61.9 -20.9 -16.3 -14.7 3? Real estate investment trusts (REITs) .9 .5 -.7 -.7 1.5 -.1 -.6R -.9 -.7 2.6 -2.8 7.0 33 Brokers and dealers -8.2 96.3 34.9 49.0 74.0 66.8 135.8 50.5 7.5 89.8 184.0 14.7 34 Securitized credit obligation (SCOs) issuers . 32.5 22.0 45.2 35.6 37.4 38.7 38.5 32.3 22.5 43.2 39.1 44.8 RELATION OF LIABILITIES TO FINANCIAL ASSETS 35 Net flows through credit markets 993.6 971.0 876.0 588.3R 834.9 577.2R 560.8R 577.7R 856.9 879.8 771.8 831.0 Other financial sources 36 Official foreign exchange 4.0 24.8 2.0 -5.9 -3.5 -4.8 --1155..55 --55..00 33..55 --66..55 --88..55 --22..44 37 Treasury currency and special drawing rights .5 4.1 2.5 .0 -1.8 .4 .4 .5 ..11 .3 .2 -7.7 38 Life insurance reserves 25.3 28.8 25.7 24.5r 32.0 31.4 19.4 19.2r 3300..55 28.7 32.5 36.4 39 Pension fund reserves 193.6 221.4 186.8 267.7r 227.3 194.7r 342.2r 241.5r 129.0 178.6 305.3 2%.2 40 Interbank claims 2.9 -16.5 34.2 -3.7r 46.4 -79.6r 99.9r -32.5r 56.1 20.8 119.4 -10.7 41 Deposits at financial institutions 259.9 290.0 96.8 61.1 50.8 -75.4 27.3 47.8 74.7 -55.2 223.9 -40.3 4? Checkable deposits and currency 43.2 6.1 44.2 75.8 122.1 7.9 104.5 114.4 88.6 92.8 202.7 104.1 43 Small time and savings deposits 120.8 96.7 59.9 16.7 -62.8 -1.1 -42.4 13.0 -29.9 -89.3 -79.0 -52.9 44 Large time deposits 53.6 17.6 -66.7 -60.9 -79.1 -63.0 -78.1 -117.4 -78.8 -104.9 -54.8 -77.8 45 Money market fund shares 21.9 90.1 70.3 41.2r 8.3 -58.7 4.0 26.8 106.2 -38.3 -13.0 -21.7 46 Security repurchase agreements 23.5 78.3 -23.5 -16.4 71.8 43.1 36.3 16.0 15.5 136.9 128.7 6.1 47 Foreign deposits -3.1 1.1 12.6 4.6 -9.5 -3.6 3.0 -5.0 -26.9 -52.5 39.3 2.0 48 Mutual fund shares 6.1 38.5 67.9 150.5 206.4 125.6 182.5 195.9 148.4 236.3 233.3 207.5 49 Corporate equities -124.5 -104.2 -45.8 48.3 65.7 56.7 50.0" 72.3r 81.9 55.4 55.3 70.2 50 Security credit 3.0 15.6 3.5 51.4 11.1 20.1 82.4 120.7 -70.0 -4.3 76.4 42.5 51 Trade debt 89.2 60.0 44.1 10.4r 51.2 41.2r 47.6r -7.3R 75.2 36.0 51.8 41.8 5? Taxes payable 5.3 2.0 -.5 -9.(Y 4.7 -11.4r 13.lr -3.2R -2.3 10.7 7.1 3.4 53 Noncorporate proprietors' equity -31.2 -32.5 -39.3 -.8R -10.6 -33.6r 45.6r 5.2R -19.0 11.6 -16.2 -18.9 54 Miscellaneous 222.3 269.9 120.5 140. lr 201.8 89.0r 38.7r 205. lr 194.7 275.8 214.8 121.9 55 Total financial sources 1,650.2 1,772.7 1,374.3 L,323.0R 1,716.4 931.6R [.IM.? L,438.0R 1,559.8 1,668.1 2,066.9 1,571.0 Floats not included in assets (-) 56 U.S. government checking deposits 1.6 8.4 3.3 -13.1 ..11 15.6 23.9 -73.1 44..44 --1111..77 --55..33 1133..00 57 Other checkable deposits .8 -3.2 2.5 2.0 11..66 3.0 -2.1 -6.1 16.7 2.5 -13.9 11..11 58 Trade credit -.9 .6 21.5 18.4r -4.5 40.7r 27.2r -3.7r 6.7 -29.1 24.3 --1199..88 Liabilities not identified as assets (-) 59 Treasury currency -.1 -.2 .2 --..66 --..22 --..33 --..22 -.1 --..44 -.1 --..33 --..11 60 -3.0 -4.4 1.6 26.2 -6.3 20.8 28.4 .2 13.4 -15.1 -2.6 -20.8 61 Security repurchase agreements -29.8 23.9 -34.8 10.4 41.5 76.2 36.9 44.0 -41.1 104.2 76.4 26.6 6? Taxes payable 6.3 2.3 6.5 5.6R 9.8 2.0 23.4 11.4r -11.3 25.7 23.0 11..88 63 Miscellaneous 4.4 -95.6 -13.8 -30.6r -19.2 6.4r -191.8r 182.3r -71.0 -76.1 3.6 6666..88 64 Totals identified to sectors as assets 1,670.7 1,841.0 1,387.5 L,304.7R 1,693.6 767.LR L,548.9R L,283.1R 1,642.4 1,667.8 1,961.6 1,502.5 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 • June 1993 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 1991 1992 Q2 Q3 Q4 Ql Q2 Q3" Q4 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 10,087.1 10,760.8 11,200.9* 11,788.3 10,960.1" 11,081.3" 11,200.9" 11,331.8" 11,471.8" 11,615.3 11,788.3 By lending sector and instrument 2 U.S. government 2,251.2 2,498.1 2,776.4 3,080.3 2,591.9 2,687.2 2,776.4 2,859.7 2,923.3 2,998.9 3,080.3 3 Treasury securities 2,227.0 2,465.8 2,757.8 3,061.6 2,567.1 2,669.6 2,757.8 2,844.0 2,907.4 2,980.7 3,061.6 4 Agency issues and mortgages 24.2 32.4 18.6 18.8 24.8 17.6 18.6 15.8 15.9 18.1 18.8 5 Private 7,835.9 8,262.6 8,424.5r 8,708.0 8,368.2" 8,394.1" 8,424.5" 8,472.0" 8,548.5" 8,616.4 8,708.0 By instrument 6 Debt capital instruments 5,577.9 5,936.0 6,180.6r 6,461.1 6,087.4" 6,137.2" 6,180.6" 6,252.0" 6,326.7" 6,395.4 6,461.1 7 Tax-exempt obligations 1,004.4 1,055.6 1,101.4 1,154.7 1,072.5 1,089.3 1,101.4 1,111.5 1,128.6 1,145.6 1,154.7 8 Corporate bonds 926.1 973.2 1,051.9" 1,118.3 1,016.5 1,036.9 1,051.9" 1,071.0 1,090.4 1,105.7 1,118.3 9 Mortgages 3,647.5 3,907.3 4,027.3r 4,188.1 3,998.5" 4,011.1" 4,027.3" 4,069.4" 4,107.7" 4,144.1 4,188.1 10 Home mortgages 2,515.1 2,760.0 2,889.0' 3,087.5 2,835.3" 2,866.9" 2,889.0" 2,935.3" 2,983.3" 3,035.4 3,087.5 11 Multifamily residential 304.4 305.8 304.9" 296.6 310.6" 302.9" 304.9" 304.9" 300.4" 299.7 296.6 12 Commercial 742.6 757.6 750.3" 720.4 768.8" 758.1" 750.3" 746.4" 740.6" 725.1 720.4 13 Farm 85.3 84.0 83.2 83.7 83.8 83.2" 83.2 82.9 83.5" 83.9 83.7 14 Other debt instruments 2,258.0 2,326.7 2,243.9 2,246.9 2,280.8 2,256.9 2,243.9 2,220.0 2,221.9" 2,221.0 2,246.9 15 Consumer credit 791.8 809.3 796.7 799.2 786.7 785.9 796.7 775.7 775.8 781.1 799.2 16 Bank loans n.e.c 760.7 758.0 724.6 707.8 742.0 734.1 724.6 712.5 709.4 705.2 707.8 17 Open market paper 107.1 116.9 98.5 108.3 119.4 107.0 98.5 110.3 111.7 108.3 108.3 18 Other 598.4 642.6 624.1 631.6 632.6 629.8 624.1 621.6 624.9" 626.4 631.6 By borrowing sector 19 State and local government 815.7 864.0 902.5 950.6 878.5 891.4 902.5 911.3 925.9 942.3 950.6 20 Household 3,508.2 3,780.6 3,925.5" 4,140.6 3,846.7" 3,886.0" 3,925.5" 3,950.6" 4,008.1" 4,068.6 4,140.6 21 Nonfinancial business 3,512.0 3,618.0 3,596.5" 3,616.7 3,643.0" 3,616.7" 3,596.5" 3,610.1" 3,614.5" 3,605.5 3,616.7 22 Farm 139.2 140.5 138.8 139.7 139.6 140.4 138.8 136.4" 140.1" 141.2 139.7 23 Nonfarm noncorporate 1,177.5 1,204.2 1,180.6 1,146.4 1,210.8 1,191.0 1,180.6 1,174.9 1,163.7" 1,150.6 1,146.4 24 Corporate 2,195.3 2,273.4 2,277.1" 2,330.6 2,292.7" 2,285.3" 2,277.1" 2,298.9" 2,310.7" 2,313.7 2,330.6 25 Foreign credit market debt held in United States 254.8 278.6 292.7 307.6 277.6 282.2 292.7 282.4 298.4" 306.9 307.6 26 Bonds 88.0 109.4 124.2 142.7 114.8 118.6 124.2 125.4 130.9" 136.5 142.7 27 Bank loans n.e.c 21.4 18.5 21.6 23.2 19.7 20.0 21.6 22.0 25.5 26.5 23.2 28 Open market paper 63.0 75.3 81.8 77.7 74.0 78.0 81.8 70.5 77.5 80.7 77.7 29 U.S. government loans 82.4 75.4 65.2 64.0 69.1 65.6 65.2 64.4 64.5" 63.4 64.0 30 Total credit market debt owed by nonfinancial sectors, domestic and foreign 10,341.9 11,039.4 ll,493.6r 12,095.9 11,237.7" 11,363.5" 11,493.6" 11,614.1" 11,770.2" 11,922.2 12,095.9 Financial sectors 31 Total credit market debt owed by financial sectors 2,333.0 2,524.2 2,665.9" 2,890.1 2,578.2" 2,615.1" 2,665.9" 2,697.7" 2,756.6" 2,824.0 2,890.1 By instrument 32 U.S. government-related 1,249.3 1,418.4 1,574.3" 1,741.5 1,489.6" 1,531.1" 1,574.3" 1,603.8" 1,658.3" 1,702.0 1,741.5 33 Sponsored credit-agency securities 373.3 393.7 402.9 443.1 389.6 394.7 402.9 405.7 417.8 434.7 443.1 34 Mortgage pool securities 871.0 1,019.9 1,166.7" 1,293.5 1,095.2" 1,131.5" 1,166.7" 1,193.2" 1,235.6" 1,262.5 1,293.5 35 Loans from U.S. government 5.0 4.9 4.8 4.8 4.9 4.9 4.8 4.8 4.8 4.8 4.8 36 Private 1,083.7 1,105.8 1,091.6" 1,148.6 1,088.6 1,084.0" 1,091.6" 1,094.0 1,098.3 1,122.0 1,148.6 37 Corporate bonds 491.9 528.2 580.2" 621.8 562.2 569.5 580.2" 578.2 583.2 598.4 621.8 38 Mortgages 3.4 4.2 4.8 5.1 4.5 4.6" 4.8 5.0 5.0 5.1 5.1 39 Bank loans n.e.c 37.5 38.6 41.8 49.0 37.0 39.0 41.8 41.6 43.7 44.5 49.0 40 Open market paper 409.1 417.7 385.7 392.8 390.1 387.0 385.7 392.9 389.5 393.9 392.8 41 Loans from Federal Home Loan Banks 141.8 117.1 79.1 79.9 94.7 83.9 79.1 76.3 76.9 80.2 79.9 By borrowing sector 42 Sponsored credit agencies 378.3 398.5 407.7 447.9 394.4 399.5 407.7 410.5 422.6 439.5 447.9 43 Mortgage pools 871.0 1,019.9 1,166.7" 1,293.5 1,095.2" 1,131.5" 1,166.7" 1,193.2" 1,235.6" 1,262.5 1,293.5 44 Private financial sectors 1,083.7 1,105.8 1,091.6" 1,148.6 1,088.6 1,084.0" 1,091.6" 1,094.0 1,098.3 1,122.0 1,148.6 45 Commercial banks 77.4 76.3 63.0 67.4 65.9 64.6 63.0 60.8 61.7 63.3 67.4 46 Bank affiliates 142.5 114.8 112.3 113.4 113.3 110.6 112.3 115.0 112.7 114.4 113.4 47 Savings and loan associations 145.2 115.3 75.9 71.3 91.0 79.0 75.9 71.2 70.3 70.9 71.3 48 Mutual savings banks 17.2 16.7 13.2 14.9 16.6 15.2 13.2 13.5 14.3 16.2 14.9 49 Finance companies 504.2 539.8 547.9" 562.2 540.4 543.7 547.9" 547.1 541.8 549.4 562.2 50 Real estate investment trusts (REITs) 10.1 10.6 11.4 14.0 11.0 11.2" 11.4 12.7 13.2 13.7 14.0 51 Securitized credit obligation (SCO) issuers... 187.1 232.3 268.0 305.4 250.3 259.9 268.0 273.6 284.4 294.2 305.4 All sectors 52 Total credit market debt, domestic and foreign.. 12,674.9 13,563.6 14,159.6" 14,985.9 13,815.9" 13,978.7" 14,159.6" 14,311.9" 14,526.8" 14,746.2 14,985.9 53 U.S. government securities 3,495.6 3,911.7 4,345.9" 4,817.0 4,076.6" 4,213.5" 4,345.9" 4,458.7" 4,576.8" 4,696.0 4,817.0 54 State and local obligations 1,004.4 1,055.6 1,101.4 1,154.7 1,072.5 1,089.3 1,101.4 1,111.5 1,128.6 1,145.6 1,154.7 55 Corporate and foreign bonds 1,506.0 1,610.7 1,756.4" 1,882.8 1,693.5 1,725.0 1,756.4" 1,774.6 1,804.5" 1,840.5 1,882.8 56 Mortgages 3,650.9 3,911.5 4,032.1" 4,193.3 4,003.0" 4,015.6" 4,032.1" 4,074.5" 4,112.7" 4,149.2 4,193.3 57 Consumer credit 791.8 809.3 796.7 799.2 786.7 785.9 796.7 775.7 775.8 781.1 799.2 58 Bank loans n.e.c 819.6 815.1 788.0 780.0 798.7 793.2 788.0 776.1 778.7 776.1 780.0 59 Open market paper 579.2 609.9 565.9 578.8 583.6 572.0 565.9 573.7 578.7 582.9 578.8 60 Other loans 827.5 839.9 773.2 780.3 801.4 784.2 773.2 767.1 771.1" 774.8 780.3 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 1991 1992 Transaction category or sector 11998899 11999900 11999911 11999922 Q2 Q3 Q4 QL Q2" Q3" Q4 CREDIT MARKET DEBT OUTSTANDING2 1 Total credit market assets 12,674.9 13,563.6 14,159.6R 14,985.9 13,815.9R 13,978.7' 14,159.6R 14,311.9* 14,526.8 14,746.2 14,985.9 1 1 1 1 2 4 5 9 3 6 7 8 2 0 F P F U r o i . n M M S N H N i S r S v a . p e t o o o o o a n a i o n n u g n r t g t c e n e f n t o f e s i i g s a a e t v d n a o l a a r h e o a n m r g r r o s d n m e y e n e l d c d n e c l m p a i s o s t o a u c o o e t c l n r o t i n r a c c e h c s l l t s d o o o n g r i r r t o o p i p t n v a o o y f e g r r i r e a a n n n t t a e e m c n i b b c e e i s u u n a s s t l s i i n n s e e e s s c s s tors 2 9 1 , , , 2 4 4 2 7 8 2 3 7 1 9 4 0 9 5 3 7 3 1 6 8 5 0 5 3 0 3 6 1 4 7 0 . . . . . . . . . . . 1 5 1 1 7 3 0 4 2 3 2 2 9 1 1 , , , , 8 6 2 5 2 7 3 0 8 1 8 4 4 5 3 8 1 9 1 8 8 8 4 1 8 5 9 3 9 2 2 6 . . . . . . . . . . . 3 2 4 3 9 7 6 0 9 4 9 1 2 0 L L , , , , 5 2 5 5 2 8 3 2 7 1 3 4 3 0 9 5 7 4 3 3 6 1 5 6 3 7 7 2 6 4 6 6 . . . . . . . . . . . L 9 1 7 5 2 9 4 2 7 7 " R R R R 1 2 1 1 1 , , , , 5 2 2 9 4 5 3 2 2 7 1 6 8 3 3 2 5 0 3 9 9 6 0 2 4 1 4 3 0 5 3 1 . . . . . . . . . . . 3 5 1 7 8 0 5 7 4 5 9 1 2 0 L L , , , , 6 5 2 8 2 0 3 1 0 8 6 0 9 5 5 8 2 5 9 8 8 1 7 3 2 3 3 5 8 9 2 9 . . . . . . . . . . . 7 3 3 8 9 2 9 7 0 8 5 R R R R R R 1 2 1 L 0 , , , , 6 8 5 2 8 3 2 2 1 1 5 8 1 8 5 5 6 3 5 3 8 3 1 7 9 5 1 4 2 0 2 9 . . . . . . . . . . . 8 7 0 2 3 9 0 6 5 0 9 R " R R R R 1 2 0 L L , , , , 5 2 2 5 5 2 8 3 7 1 3 3 4 7 0 5 9 4 3 3 6 1 5 6 2 3 4 6 7 7 6 6 . . . . . . . . . . L 1 5 7 2 9 4 2 7 7 Y R R R R 1 2 0 L L , , , , 5 4 2 6 5 2 8 1 7 1 4 5 7 5 1 5 3 5 6 9 9 6 7 8 1 6 9 1 3 1 0 6 . . . . . . . . . . . L 8 9 9 4 2 2 2 5 4 2 R R R R R 1 2 1 1 0 , , , , 5 2 4 2 5 2 8 2 7 8 4 0 8 2 5 3 4 9 3 5 4 8 7 2 9 1 3 5 1 6 5 0 . . . . . . . . . . . 5 9 6 0 3 3 3 8 8 6 9 1 2 1 1 1 , , , , 5 4 2 5 2 9 2 2 0 7 3 4 0 3 2 0 8 5 6 6 5 9 2 6 8 7 7 0 5 0 2 9 . . . . . . . . . . . 1 7 3 1 5 8 5 6 9 2 2 1 2 1 1 1 , , , , 4 5 2 9 3 5 2 2 2 7 6 8 1 3 0 2 5 3 3 9 9 0 6 4 1 2 0 4 3 5 3 1 . . . . . . . . . . . 5 1 7 3 8 4 0 7 5 5 9 13 Commercial banking 2,643.9 2,769.3 2,853.3 J ,944.0 2,796.6 2,817.8 2,853.3 2,860.6 2,882.9 2,922.9 2,944.0 14 U.S. commercial banks 2,368.4 2,463.6 2,502.5 1,571.7 2,480.0 2,488.7 2,502.5 2,514.0 2,521.9 2,556.7 2,571.7 15 Foreign banking offices 242.3 270.8 319.2 333.8 284.4 297.5 319.2 313.3 328.2 328.9 333.8 16 Bank affiliates 16.2 13.4 11.9 18.6 11.3 11.6 11.9 13.6 13.1 17.5 18.6 17 Banks in U.S. possession 17.1 21.6 19.7 20.0 20.9 20.0 19.7 19.7 19.7 19.8 20.0 18 Private nonbank finance 5,179.7 5,474.1 5,856.2R (,,237.1 5,566.4R 5,652.2R 5,856.2R 5,913.0R 6,010.7 6,143.6 6,237.1 19 Thrift institutions 1,484.9 1,335.5 1,190.6 1,126.8 1,248.4 1,205.1 1,190.6 1,161.8 1,143.0 1,133.2 1,126.8 20 Savings and loan associations 1,088.9 945.1 804.2 727.2 866.3 826.1 804.2 771.1 748.8 737.9 727.2 21 Mutual savings banks 241.1 227.1 211.5 208.7 216.4 208.7 211.5 213.4 211.6 208.3 208.7 22 Credit unions 154.9 163.4 174.9 190.9 165.7 170.2 174.9 177.2 182.6 187.0 190.9 23 Insurance 2,140.3 2,329.1 2,674.9" 859.8 2,443.9" 2,507.4R 2,674.9R 2,708.0" 2,756.2 2,812.2 2,859.8 24 Life insurance companies 1,013.1 1,116.5 1,199.6 ,294.5 1,183.7 1,201.4 1,199.6 1,224.3 1,247.1 1,270.3 1,294.5 25 Other insurance companies 317.5 344.0 378.7 396.0 361.4 370.7 378.7 387.0 392.5 393.1 396.0 26 Private pension funds 394.7 431.3 622.2R 660.0 437.LR 465.4R 622.2R 615.LR 627.4 650.1 660.0 27 State and local government retirement funds, 414.9 437.4 474.3 509.3 461.7 470.1 474.3 481.6 489.1 498.7 509.3 28 Finance n.e.c 1,554.5 1,809.4 L,990.7R :>,250.5 L,874.1R 1,939.7 L,990.7R 2,043.3R 2,111.5 2,198.2 2,250.5 29 Finance companies 617.1 658.7 635.6R 656.4 651.7 647.4 635.6R 641.0 641.6 642.5 656.4 30 Mutual funds 307.2 360.2 450.5 574.0 394.4 421.4 450.5 470.0" 513.3 548.7 574.0 31 Money market funds 291.8 372.7 402.7R 405.2 389.9 389.5 402.7R 423.1 413.5 408.8 405.2 32 Real estate investment trusts (REITs) 8.4 7.7 7.0 8.5 7.4R 7.2 7.0 6.8 7.5 6.8 8.5 33 Brokers and dealers 142.9 177.9 226.9 300.9 180.4 214.3 226.9 228.8 251.2 297.3 300.9 34 Securitized credit obligation (SCOs) issuers . 187.1 232.3 268.0 305.4 250.3 259.9 268.0 273.6 284.4 294.2 305.4 RELATION OF LIABILITIES TO FINANCIAL ASSETS 35 Total credit market debt 12,674.9 13,563.6 14,159.6" 14,985.9 13,815.9" 13,978.7R 14,159.6R I4,311.9R 14,526.8 14,746.2 14,985.9 Other liabilities 36 Official foreign exchange .• • ••. 53.6 61.3 55.4 51.8 53.6 52.9 55.4 52.7 54.4 55.4 51.8 37 Treasury currency and special drawing rights certificates 23.8 26.3 26.3 24.5 26.1 26.2 26.3 26.3 26.4 26.5 24.5 38 Life insurance reserves 354.3 380.0 402.0 434.0 392.3 397.2 402.0 409.6" 416.8 424.9 434.0 39 Pension fund reserves 3,210.5 3,303.0 4,223.4R 4,585.8 3,550.9" 3,716.5R 4,223.4R 4,242. LR 4,294.2 4,429.1 4,585.8 40 Interbank claims 32.4 64.0 65.2R 111.4 35.9" 60.9" 65.2R 67.4" 70.7 101.8 111.4 41 Deposits at financial institutions 4,644.6 4,741.4 4,802.5 4,853.3 4,765.7 4,769.5 4,802.5 4,796.7R 4,790.9 4,843.1 4,853.3 42 Checkable deposits and currency 888.6 932.8 1,008.5 1,130.3 933.1 948.3 1,008.5 984.3R 1,032.3 1,071.6 1,130.3 43 Small time and savings deposits 2,265.4 2,325.3 2,342.0 2,279.3 2,351.5 2,339.7 2,342.0 2,340.9" 2,314.7 2,294.3 2,279.3 44 Large time deposits 615.4 548.7 487.9 409.0 532.6 517.1 487.9 469.7" 438.7 428.8 409.0 45 Money market fund shares 428.1 498.4 539.6 547.9 532.8 533.1 539.6 571.0 557.2 553.2 547.9 46 Security repurchase agreements 403.2 379.7 363.4 435.2 354.0 368.9 363.4 376.4 406.8 444.1 435.2 47 Foreign deposits 43.9 56.6 61.2 51.6 61.7 62.4 61.2 54.4" 41.3 51.1 51.6 48 Mutual fund shares 566.2 602.1 813.9R 1,056.5 683.7 744.2 813.9" 857.7" 935.5 977.4 1,056.5 49 Security credit 133.9 137.4 188.9 224.3 137.5 158.1 188.9 195.1 194.1 213.1 224.3 50 Trade debt 903.9 938.0 940.9R 992.1 909.4 935.3 940.9R 940.9" 945.3 974.6 992.1 5 5 2 1 M Ta i x sc es e ll p a a n y e a o b u le s 2,50 8 8 1 . . 3 8 2,67 8 8 1 . . 8 4 2,81 7 1 2 . . 7 3 R R 2,9 7 2 7 1 . . 1 0 2,69 6 9 5 . . 2 8 R 2,73 7 3 1 . . 4 9 R R 2,81 7 1 2 . . 7 3 R R 2,82 7 8 4 . . 8 2 " " 2,87 6 5 9 . . 3 8 2,91 7 5 4 . . 2 8 2,92 7 1 7 . . 0 1 53 Total liabilities 25,188.3 26,577.2 28,562. LR 30,317.6 27,136.1R 27,644.8R 28,562. LR 28,803.3" 29,200.2 29,782.1 30,317.6 Financial assets not included in liabilities (+) 54 Gold and special drawing rights 21.0R 22.0" 22.3R 19.6 21.4R 21.8R 22.3R 22.0" 22.1 23.2 19.6 55 Corporate equities 3,819.7 3,506.6 4,630.0 5,127.7 4,104.7 4,338.5 4,630.0 4,739.7 4,678.1 4,860.5 5,127.7 56 Household equity in noncorporate business 2,524.9 2,449.4 2,367.8R 2,263.6 2,511.8R 2,495.2R 2,367.8R 2,373.5" 2,354.7 2,330.9 2,263.6 Floats not included in assets (-) 57 U.S. government checking deposits 6.1 15.0 3.8 6.8 8.3 19.8 3.8 .9 1.4 4.0 6.8 58 Other checkable deposits 26.5 28.9 30.9 32.5 29.9 23.6 30.9 29.5" 32.6 23.3 32.5 59 Trade credit -159.7 -148.0 -134.0R -138.5 -157.7 -154.2 -134.0R -135.2" -154.7 -152.7 -138.5 Liabilities not identified as assets (-) 60 Treasury currency -4.3 -4.1 -4.8 -5.0 -4.7 -4.7 -4.8 -4.9 -4.9 -5.0 -5.0 61 Interbank claims -31.0 -32.0 -4.2 -10.7 -9.9 -4.7 -4.2 -1.8 -4.0 -5.9 -10.7 62 Security repurchase agreements 11.5 -23.3 -12.9 27.1 -25.8 -10.6 -12.9 -10.1 11.6 36.5 27.1 63 Taxes payable 20.6 21.8 18.9" 28.9 11.8R 17.6R 18.9" 11.5" 18.0 24.4 28.9 64 Miscellaneous -251.LR -247.3R -452.3R -549.3 -242.3R -300.8R -452.3R -443.0" -455.7 -510.1 -549.3 65 Totals identified to sectors as assets 31,935.2R 32,944.3R 36,136.8R 38,336.6 34,164.3R 34,914.2" 36,136.8R 36,491.8" 36,810.8 37,582.0 38,336.6 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 • June 1993 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures Monthly data seasonally adjusted, 1987=100 except as noted 1992 1993 MMeeaassuurree 11999900 11999911 11999922 July Aug. Sept. Oct. Nov.r Dec.r Jan.r Feb. Mar. 1 Industrial production1 109.2 107.1 108.7 109.4 109.1 108.9 109.7 110.4 111.0 111.4 112.0 112.0 Market groupings 2 Products, total 110.1 108.1 109.5 109.6 109.8 109.6 110.7 111.3 112.3 111122..77 111133..33 111133..33 3 Final, total 110.9 109.6 111.1 111.0 111.5 111.2 112.4 113.1 114.2 114.6 115.2 115.2 4 Consumer goods 107.3 107.5 110.5r 110.4 110.8 110.7 111.9 112.6 113.4 113.4 114.2 114.0 5 Equipment 115.5 112.2 111.9 111.8 112.5 111.9 113.0 113.7 115.3 116.3 116.6 116.7 6 Intermediate 107.7 103.4 104.6 105.1 104.4 104.5 105.5 105.7 106.2 106.5 107.2 107.2 7 Materials 107.8 105.5 107.5r 109.0 108.1 107.9 108.2 109.0 109.0 109.3 110.0 110.0 Industry groupings 8 Manufacturing 109.9 107.4 109.7 110.2 110.1 110099..88 110.6 111.3 111.8 111122..88 111133..33 111133..44 9 Capacity utilization, manufacturing (percent)2 82.3 78.2 77.8 78.1 77.9 7777..55 77.9 78.3 7788..55 7799..00 7799..22 7799..11 10 Construction contracts3 95.3 89.7 92.8 89.0 90.0 89.0 104.0 92.0 90.0 100.0 95.0 n.a. 11 Nonagricultural employment, total4 107.4 106.0 106.1 106.3 106.2 106.2 106.2 106.3 106.4 106.5 106.9 106.9 12 Goods-producing, total 101.0 96.4 94.8 94.9 94.6 94.3 94.2 94.2 94.2 94.2 94.6 94.3 13 Manufacturing, total 100.5 97.0 95.6 95.9 95.4 95.2 94.9 95.0 94.9 95.1 95.2 95.2 14 Manufacturing, production worker 100.1 96.1 95.2 95.5 94.9 94.6 94.3 94.6 94.7 95.2 95.2 95.2 15 Service-producing 109.5 109.0 109.7 109.9 109.9 110.0 110.1 110.2 110.3 110.5 110.8 110.9 16 Personal income, total 122.7 127.0 133.0 132.8 133.0 133.6 135.3r 135.3 136.6 137.3 137.5 n.a. 17 Wages and salary disbursements 121.3 124.4 129.0 128.7 129.6 129.5 130.5 131.2 132.3 133.0 132.9 n.a. 18 Manufacturing 113.5 113.6 115.4 115.5 115.3 115.3 116.5 116.0 118.0 117.1 117.8 n.a. 19 Disposable personal income5 122.9 128.0 134.7 134.5 134.6 135.2 137.0r 136.8 138.2 138.7 139.0 n.a. 20 Retail sales6 120.2r 121.3r 127. r 126.6r 127.3r 128.lr 130.7r 130.5 131.9 132.0 131.5 130.2 Prices7 71 Consumer (1982-84= 100) 130.7 136.2 140.3 140.5 140.9 141.3 141.8 142.0 141.9 142.6 143.1 114433..66 22 Producer finished goods (1982=100) 119.2 121.7 123.2 123.7 123.6 123.3 124.4r 124.0 123.8 124.0 124.3 124.6 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 1993 CCaatteeggoorryy 11999900 11999911 11999922 Aug. Sept. Oct. Nov. Dec. Jan.r Feb. Mar. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 190,216 191,883 193,542 193,749 193,893 194,051 194,210 194,379 194,514 194,641 194,829 2 Labor force (including Armed Forces)1 126,954 127,421 128,948 129,363 129,220 128,986 129,259 129,461 128,953 129,182 129,299 3 Civilian labor force 124,787 112255,,330033 112266,,998822 127,404 112277,,227744 112277,,006666 112277,,336655 112277,,559911 112277,,008833 112277,,332277 112277,,442299 Employment 4 Nonagricultural industries 114,728 114,644 114,391 114,562 114,503 114,518 114,855 115,049 114,879 115,335 115,483 5 Agriculture 3,186 3,233 3,207 3,218 3,221 3,169 3,209 3,262 3,191 3,116 3,082 Unemployment 6 Number 6,874 8,426 9,384 9,624 9,550 9,379 9,301 9,280 9,013 8,876 8,864 7 Rate (percent of civilian labor force).... 5.5 6.7 7.4 7.6 7.5 7.4 7.3 7.3 7.1 7.0 7.0 8 Not in labor force 63,262 64,462 64,594 64,386 64,673 65,065 64,951 64,918 65,561 65,459 65,904 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 109,782 108,310 108,434 108,485 108,497 108,571 108,646 108,752r 108,865 109,232 109,210 10 Manufacturing 19,117 18,455 18,192 18,145 18,102 18,046 18,068 18,062r 18,092 18,112 18,103 11 Mining 710 691 635 626 620 623 622 619 616 604 607 12 Contract construction 5,133 4,685 4,594 4,591 4,574 4,601 4,590 4,582r 4,559 4,652 4,593 13 Transportation and public utilities 5,808 5,772 5,741 5,729 5,738 5,731 5,732 5,742r 5,763 5,765 5,772 14 Trade 25,877 25,328 25,120 25,070 25,079 25,115 25,092 25,132r 25,222 25,367 25,362 15 Finance 6,729 6,678 6,672 6,661 6,669 6,680 6,669 6,677 6,682 6,680 6,673 16 Service 28,130 28,323 28,903 28,981 29,065 29,152 29,188 29,253r 29,267 29,366 29,426 17 Government 18,304 18,380 18,578 18,682 18,650 18,623 18,685 18,685r 18,664 18,686 18,674 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 • June 1993 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1992 1992 1992 1993 Q2 Q3 Q4r Ql Q2 Q3 Q4 Ql Q2 Q3 Q4r Ql Output (1987=100) Capacity (percent of 1987 output) Capacity utilization rate (percent) 1 Total industry 108.5 109.1 110.4 111.8 137.7 138.4 139.1 139.8 78.8 78.8 79.3 79.9 2 Manufacturing 109.5 110.0 111.2 113.2 140.6 141.4 142.2 143.0 77.9 77.8 78.2 79.1 3 Primary processing 105.4 106.4 107.1 108.8 129.6 129.9 130.3 130.6 81.3 81.9 82.2 83.3 4 Advanced processing 111.4 111.7 113.2 115.2 145.6 146.7 147.7 148.8 76.5 76.2 76.6 77.4 5 Durable goods 108.4 108.8 110.3 113.0 144.4 145.2 146.0 146.8 75.0 74.9 75.6 77.0 6 Lumber and products 96.7 98.5 101.3 103.6 126.1 126.3 126.5 126.7 76.7 78.0 80.1 81.8 7 Primary metals 101.7 104.0 104.5 107.6 128.3 127.5 126.7 126.0 79.2 81.5 82.5 85.4 8 Iron and steel 101.6 104.6 106.7 110.0 132.7 131.2 129.8 128.5 76.6 79.7 82.2 85.6 9 Nonferrous 101.7 103.0 101.6 104.2 122.2 122.3 122.4 122.5 83.3 84.3 83.0 85.1 10 Nonelectrical machinery 125.7 128.8 132.5 140.1 165.9 167.4 168.9 170.6 75.8 76.9 78.5 82.2 11 Electrical machinery 111.8 112.6 113.7 116.4 149.1 150.4 151.6 152.9 75.0 74.9 74.9 76.1 12 Motor vehicles and parts 100.5 98.1 103.7 111.1 136.7 137.2 137.7 138.3 73.5 71.5 75.3 80.3 13 Aerospace and miscellaneous transportation equipment . 96.8 94.9 93.1 89.9 140.9 141.5 142.1 142.7 68.7 67.1 65.5 63.0 14 Nondurable goods 110.9 111.6 112.4 113.3 135.6 136.5 137.4 138.2 81.7 81.8 81.9 82.0 15 Textile mill products 106.2 106.6 107.1 109.1 119.2 119.7 120.2 120.7 89.0 89.1 89.1 90.4 16 Paper and products 106.7 108.2 107.5 108.6 119.9 120.5 121.1 121.7 89.0 89.8 88.8 89.3 17 Chemicals and products 116.8 118.0 119.3 120.7 144.3 145.1 146.0 146.9 81.0 81.3 81.7 82.2 18 Plastics materials 129.7 132.4 126.3 148.7 150.5 152.2 154.0 83.7 86.2 87.0 82.0 85.3 19 Petroleum products 109.2 106.9 110.4 110.6 121.5 121.6 121.7 121.7 89.9 87.9 90.7 90.8 20 Mining 98.9 99.2 98.9 95.7 114.7 114.8 114.8 114.8 86.2 86.5 86.2 83.3 71 Utilities 107.4 109.4 112.4 113.4 129.8 130.1 130.4 130.7 82.7 84.1 86.2 86.8 22 Electric 110.3 113.2 115.5 116.2 126.0 126.4 126.8 127.1 87.6 89.5 91.1 91.4 Previous cycle2 Latest cycle3 1992 1992 1993 High Low High Low Mar. Aug. Sept. Oct. Nov. Dec.r Jan.r Feb.r Mar.p Capacity utilization rate (percent) 1 Total industry 89.2 72.6 87.3 71.8 78.4 78.8 78.6 79.0 79.4r 79.6 79.8 80.1 79.9 2 Manufacturing 88.9 70.8 87.3 70.0 77.5 77.9 77.5 77.9 78.3r 78.5 79.0 79.2 79.1 3 Primary processing 92.2 68.9 89.7 66.8 80.8 81.7 81.3 81.9 82.5r 82.2 83.0 83.5 83.5 4 Advanced processing 87.5 72.0 86.3 71.4 76.1 76.3 76.0 76.3 76.6 77.0 77.4 77.5 77.3 5 Durable goods 88.8 68.5 86.9 65.0 74.3 75.2 74.4 75.1 75.5r 76.0 76.7 77.2 77.1 6 Lumber and products 90.1 62.2 87.6 60.9 78.8 78.3 76.6 79.7 so^ 79.6 82.5 81.7 81.1 7 Primary metals 100.6 66.2 102.4 46.8 78.7 81.8 80.1 82.0 83.lr 82.4 83.4 86.5 86.4 8 Iron and steel 105.8 66.6 110.4 38.3 76.7 79.5 78.8 81.6 82.6r 82.3 82.9 87.1 86.9 9 Nonferrous 92.9 61.3 90.5 62.2 81.8 85.2 82.2 82.7 83.8r 82.5 84.1 85.6 85.6 10 Nonelectrical machinery 96.4 74.5 92.1 64.9 74.5 77.3 76.9 77.4 78.C 80.0 81.0 82.4 83.0 11 Electrical machinery 87.8 63.8 89.4 71.1 74.8 75.1 74.3 74.5 75.6r 74.8 75.4 76.4 76.7 12 Motor vehicles and parts 93.4 51.1 93.0 44.5 69.1 72.5 70.8 73.6 74.3r 77.9 81.4 80.2 79.4 13 Aerospace and miscellaneous transportation equipment. 77.0 66.6 81.1 66.9 70.2 67.0 66.4 66.3 65.5r 64.8 64.1 62.9 62.0 14 Nondurable goods 87.9 71.8 87.0 76.9 81.7 81.6 81.7 81.7 82.0 81.9 82.1 82.0 81.8 15 Textile mill products 92.0 60.4 91.7 73.8 88.5 88.7 88.9 88.4 89.4r 89.5 91.3 90.4 89.6 16 Paper and products 96.9 69.0 94.2 82.0 88.5 88.2 90.0 87.8 88.9 89.6 89.1 88.6 90.0 17 Chemicals and products 87.9 69.9 85.1 70.1 79.9 81.1 81.4 81.4 82. lr 81.6 82.2 82.2 82.1 18 Plastics materials 102.0 50.6 90.9 63.4 85.0 86.0 85.1 82.8 84.1 79.1 85.2 85.3 85.4 19 Petroleum products 96.7 81.1 89.5 68.2 90.3 85.8 88.3 91.5 91.0 89.7 89.7 91.7 91.1 7.0 Mining 94.4 88.4 96.6 80.6 84.9 86.1 85.6 86.1 86.6r 85.8 85.4 82.8 81.8 71 Utilities 95.6 82.5 88.3 76.2 83.1 83.6 84.6 85.0 86.2r 87.5 84.3 87.7 88.3 22 Electric 99.0 82.7 88.3 78.7 88.1 89.2 89.9 89.8 91.0r 92.5 88.7 92.4 93.1 1. Data in this table also appear in the Board's G.17 (419) monthly statistical 2. Monthly high, 1973; monthly low, 1975. release. For ordering address, see inside front cover. For a detailed description of 3. Monthly highs, 1978 through 1980; monthly lows, 1982. the series, see "Recent Developments in Industrial Capacity and Utilization," Federal Reserve Bulletin, vol. 76 (June 1990), pp. 411-35. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A47 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 1987 1992 1993 1992 GGrroouupp por- avg. tion Mar. Apr. May June July Aug. Sept. Oct. Nov.r Dec.r Jan.r FFeebb..rr Mar.p Index (1987 = 100) MAJOR MARKETS 1 Total index 100.0 108.7 107.6 108.1 108.9 108.5 109.4 109.1 108.9 109.7 110.4 111.0 111.4 112.0 112.0 ? Products 60.8 109.5 108.5 109.0 109.7 109.0 109.6 109.8 109.6 110.7 111.3 112.3 112.7 113.3 113.3 Final products 46.0 111.1 109.8 110.6 111.4 110.5 111.0 111.5 111.2 112.4 113.1 114.2 114.6 115.2 115.2 4 Consumer goods, total 26.0 110.5 109.3 110.1 110.8 109.6 110.4 110.8 110.7 111.9 112.6 113.4 113.4 114.2 114.0 s Durable consumer goods 5.6 107.9 106.2 107.9 111.1 109.2 108.6 109.2 106.9 108.1 108.9 111.1 113.3 114.3 114.3 6 Automotive products 2.5 106.6 103.6 106.5 110.6 108.0 106.6 106.8 104.5 108.8 110.2 114.3 119.4 119.0 118.0 7 Autos and trucks 1.5 102.0 95.7 102.5 107.8 104.0 100.5 100.6 98.2 105.9 107.2 116.5 123.9 120.3 118.2 8 Autos, consumer .9 90.0 81.9 93.1 98.6 97.6 92.3 87.2 88.1 88.5 89.4 97.7 102.3 101.8 100.5 9 Trucks, consumer .6 122.1 118.8 118.3 123.3 114.8 114.3 123.1 115.1 135.1 137.1 148.1 160.3 151.4 147.9 10 Auto parts and allied goods... 1.0 113.6 115.5 112.5 114.8 114.0 115.7 116.2 114.0 113.3 114.7 111.0 112.5 116.9 117.7 11 Other 3.1 108.9 108.3 109.1 111.5 110.2 110.3 111.1 108.9 107.6 107.8 108.6 108.6 110.6 111.4 V Appliances, A/C, and TV .8 104.7 103.5 103.4 107.4 106.2 102.3 110.6 108.5 103.8 103.8 104.0 102.6 108.7 113.1 N Carpeting and furniture .9 102.5 102.5 104.4 105.9 103.2 103.8 103.6 100.9 100.5 101.4 102.3 104.5 105.8 105.2 14 Miscellaneous home goods ... 1.4 115.3 114.7 115.2 117.3 116.9 118.8 116.1 114.2 114.3 114.1 115.2 114.5 114.7 114.4 15 Nondurable consumer goods 20.4 111.2 110.2 110.7 110.7 109.7 110.8 111.2 111.7 112.9 113.7 114.0 113.4 114.2 114.0 If. Foods and tobacco 9.1 108.5 107.8 107.6 107.7 107.2 108.6 110.1 108.9 109.8 110.1 109.9 109.9 110.6 110.1 17 Clothing 2.6 95.2 95.1 95.3 96.4 95.5 96.8 95.0 95.5 94.9 95.4 96.0 95.6 94.9 95.3 18 Chemical products 3.5 122.6 119.4 120.8 121.4 121.6 121.5 122.0 124.1 126.8 128.3 129.1 128.7 128.5 128.3 19 Paper products 2.5 124.2 124.6 125.1 124.3 121.7 121.9 121.8 124.2 124.1 126.1 126.0 125.6 125.8 125.9 70 Energy 2.7 108.1 107.0 108.9 107.2 104.8 107.4 106.2 108.1 111.5 112.2 114.0 110.1 114.7 114.6 71 Fuels .7 104.7 103.7 105.1 104.0 104.4 105.3 99.0 103.5 110.3 108.0 105.7 106.1 109.5 106.7 22 Residential utilities 2.0 109.4 108.2 110.3 108.4 105.0 108.2 108.9 109.7 112.0 113.7 117.1 111.6 116.7 117.5 73 Equipment 20.0 111.9 110.4 111.3 112.3 111.6 111.8 112.5 111.9 113.0 113.7 115.3 116.3 116.6 116.7 74 Business equipment 13.9 124.5 121.5 123.0 124.5 124.1 124.4 125.9 125.4 126.8 127.8 130.2 131.8 133.0 133.4 75 Information processing and related .. 5.6 141.2 136.0 137.9 139.2 140.4 141.9 143.5 143.5 145.7 146.8 149.9 152.1 155.2 157.0 76 Office and computing 1.9 176.8 164.9 168.2 170.5 174.0 178.0 182.0 184.0 187.0 189.0 198.5 205.0 214.1 77 Industrial 4.0 102.3 101.3 101.7 103.4 102.9 103.4 102.7 101.6 102.0 103.1 104.5 105.1 105.5 105.4 78 Transit 2.5 131.2 128.9 131.7 133.3 131.8 128.7 132.6 130.4 133.0 134.1 136.7 140.2 138.0 136.3 79 Autos and trucks 1.2 101.2 95.0 101.3 105.6 101.7 98.1 101.3 99.1 105.2 107.7 114.4 121.4 119.8 118.1 30 Other 1.9 114.1 112.2 113.2 115.0 111.5 112.2 114.4 115.8 115.5 115.9 118.0 118.2 119.3 120.1 31 Defense and space equipment 5.4 82.9 85.6 84.7 84.2 83.6 82.7 81.8 81.1 80.5 79.7 78.9 78.4 77.5 77.1 37 Oil and gas well drilling .6 78.3 76.2 79.2 79.2 74.6 78.6 75.0 74.4 80.2 85.2 88.5 84.7 76.6 72.2 33 Manufactured homes .2 108.8 98.7 100.7 100.3 97.1 112.0 106.1 111.2 119.9 127.1 138.0 143.0 141.3 34 Intermediate products, total 14.7 104.6 104.4 103.9 104.4 104.4 105.1 104.4 104.5 105.5 105.7 106.2 106.5 107.2 107.2 35 Construction supplies 6.0 97.4 96.7 96.5 97.8 97.2 98.6 98.5 97.1 98.5 98.8 98.4 99.5 100.7 100.5 36 Business supplies 8.7 109.5 109.7 109.0 109.0 109.4 109.7 108.5 109.6 110.4 110.5 111.6 111.4 111.7 111.9 37 Materials 39.2 107.5 106.1 106.8 107.7 107.6 109.0 108.1 107.9 108.2 109.0 109.0 109.3 110.0 110.0 38 Durable goods materials 19.4 109.9 108.3 108.7 110.4 110.2 111.2 111.1 109.9 110.9 112.0 112.1 113.4 114.4 114.4 39 Durable consumer parts 4.2 101.0 97.9 99.3 102.5 102.9 101.8 103.9 102.3 103.5 103.8 104.0 104.8 105.2 105.0 4ft Equipment parts 7.3 116.3 115.1 114.7 116.2 116.2 117.5 117.0 116.4 117.2 118.7 119.1 121.0 122.3 122.5 41 Other 7.9 108.8 107.5 108.1 109.2 108.7 110.2 109.5 108.1 109.1 110.2 109.9 111.0 112.1 111.8 47 Basic metal materials 2.8 108.3 106.3 106.3 108.3 107.7 111.5 110.9 108.1 108.5 111.3 108.8 109.6 111.5 111.2 43 Nondurable goods materials 9.0 109.7 108.9 109.4 109.7 110.4 111.7 110.3 110.5 109.7 110.6 110.2 111.6 111.7 112.5 44 Textile materials 1.2 102.6 102.0 103.2 102.9 102.3 103.9 102.9 103.9 103.3 103.8 102.7 104.7 104.4 103.4 45 Pulp and paper materials 1.9 109.8 107.8 109.2 107.8 110.8 111.8 108.9 112.7 109.6 111.0 113.2 110.3 111.1 114.4 46 Chemical materials 3.8 110.2 109.3 109.9 111.2 110.9 113.4 111.9 110.9 110.2 111.1 109.0 112.0 112.5 113.2 47 Other 2.1 112.5 112.7 112.2 112.4 113.4 112.8 112.6 111.5 112.6 112.9 114.1 115.6 114.9 114.6 48 Energy materials 10.9 101.2 100.1 101.3 101.3 100.6 102.9 100.9 102.0 102.0 102.4 102.3 100.1 100.6 100.3 49 Primary energy 7.2 100.3 98.2 99.8 99.7 99.6 102.3 101.4 101.8 102.1 102.3 101.9 99.9 98.7 97.9 50 Converted fuel materials 3.7 103.0 103.8 104.1 104.3 102.6 104.1 100.0 102.5 101.7 102.4 103.1 100.5 104.4 104.9 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.3 108.9 107.9 108.3 109.0 108.6 109.6 109.3 109.2 109.8 110.5 110.9 111.0 111.8 111.8 52 Total excluding motor vehicles and parts ... 95.3 109.2 108.2 108.6 109.2 108.8 109.9 109.6 109.5 110.1 110.8 111.2 111.3 112.0 112.1 53 Total excluding office and computing machines 97.5 107.0 106.1 106.6 107.4 106.8 107.6 107.3 107.0 107.8 108.4 108.8 109.0 109.4 109.3 54 Consumer goods excluding autos and trucks 24.5 111.0 110.2 110.6 110.9 109.9 111.0 111.4 111.4 112.2 113.0 113.2 112.7 113.8 113.8 55 Consumer goods excluding energy 23.3 110.7 109.6 110.3 111.2 110.1 110.7 111.3 111.0 111.9 112.7 113.3 113.7 114.1 114.0 56 Business equipment excluding autos and trucks 12.7 126.8 124.1 125.2 126.4 126.3 127.0 128.3 127.9 128.9 129.7 131.7 132.9 134.2 134.9 57 Business equipment excluding office and computing equipment 12.0 116.1 114.5 115.7 117.1 116.1 115.8 116.8 115.9 117.0 117.9 119.1 112200..00 111199..99 111199..77 58 Materials excluding energy 28.4 109.8 108.5 108.9 110.2 110.3 111.3 110.8 110.1 110.5 111.6 111.5 112.8 113.6 113.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • June 1993 2.13—Continued 1987 1992 1993 SIC pro- 1992 GGrroouupp code por- avg. tion Mar. Apr. May June July Aug. Sept. Oct. Nov.r Dec.r Jan.r Feb/ Mar.P Index (1987 = 100) MAJOR INDUSTRIES 1 Total index 100.0 108.7 107.6 108.1 108.9 108.5 109.4 109.1 108.9 109.7 110.4 111.0 111.4 112.0 112.0 2 Manufacturing 84.4 109.7 108.5 109.0 109.9 109.6 110.2 110.1 109.8 110.6 111.3 111.8 112.8 113.3 113.4 3 Primary processing 26.7 105.7 104.5 105.0 105.6 105.6 107.3 106.2 105.7 106.6 107.4 107.2 108.3 109.0 109.1 4 Advanced processing 57.7 111.5 110.3 110.8 111.9 111.4 111.6 112.0 111.7 112.5 113.1 114.0 114.8 115.3 115.4 5 Durable goods 47.3 108.5 107.0 107.6 109.1 108.5 109.0 109.2 108.2 109.5 110.2 111.2 112.4 113.3 113.4 6 Lumber and products ... "'24 2.0 98.6 99.2 97.2 97.4 95.4 99.8 98.9 96.7 100.8 102.3 100.7 104.4 103.5 102.8 7 Furniture and fixtures ... 25 1.4 100.2 98.6 101.1 103.3 100.3 101.0 101.7 100.5 99.6 99.5 100.5 101.4 103.4 103.3 8 day, glass, and stone products 32 2.5 96.2 95.0 95.6 96.7 96.6 97.1 96.4 96.1 97.7 97.8 98.3 98.2 99.0 99.2 9 Primary metals 33 3.3 103.0 101.4 100.9 102.0 102.1 105.6 104.3 102.0 104.2 105.3 104.2 105.2 109.0 108.6 10 Iron and steel 331,2 1.9 104.1 102.5 100.9 102.2 101.8 106.4 104.4 103.0 106.3 107.2 106.5 106.8 111.9 111.2 11 Raw steel .1 101.2 98.8 99.9 98.5 101.5 105.3 101.9 99.8 101.7 101.5 100.4 106.6 106.9 12 Nonferrous 333333--66,,99 1.4 101.6 99.9 100.9 101.8 102.5 104.4 104.2 100.5 101.2 102.6 101.0 103.0 104.9 104!9 13 Fabricated metal products 34 5.4 101.8 100.0 100.6 102.2 102.2 102.6 102.5 101.3 102.9 103.4 104.5 105.2 105.2 105.2 14 Nonelectrical machinery. 35 8.6 127.3 122.9 124.1 126.7 126.4 127.8 129.3 129.1 130.4 131.7 135.5 137.8 140.6 142.0 15 Office and computing machines 357 2.5 176.8 164.9 168.2 170.5 174.0 178.0 182.0 184.0 187.0 189.0 198.5 205.0 214.1 218.3 16 Electrical machinery .... 36 8.6 111.9 110.9 111.0 112.3 112.2 112.6 113.0 112.1 112.7 114.6 113.7 114.9 116.8 117.6 17 Transportation equipment 37 9.8 97.2 96.5 98.0 99.6 98.2 96.7 97.0 95.6 97.5 97.5 99.4 101.3 99.8 98.7 18 Motor vehicles and parts 371 4.7 98.7 94.2 98.5 102.7 100.4 97.7 99.4 97.2 101.2 102.4 107.4 112.5 111.0 109.9 19 Autos and light trucks 2.3 100.2 93.7 101.1 106.5 103.0 99.3 98.6 96.7 103.1 104.6 113.7 120.7 117.6 115.6 20 Aerospace and miscellaneous transportation equipment.. 372-6,9 5.1 96.0 98.6 97.4 96.8 96.3 95.7 94.9 94.1 94.1 93.0 92.2 91.3 89.7 88.6 21 Instruments 38 3.3 118.1 118.6 119.0 119.8 118.5 118.5 118.2 118.1 117.8 116.8 116.8 116.2 116.2 116.4 22 Miscellaneous 39 1.2 119.5 120.0 118.9 118.4 117.8 120.4 118.2 118.6 119.7 120.0 120.3 118.8 118.1 118.0 23 Nondurable goods 37.2 111.2 110.4 110.7 110.9 111.0 111.7 111.3 111.8 112.0 112.7 112.7 113.2 113.4 113.3 24 Foods "20 8.8 110.1 110.2 109.6 109.3 109.0 109.8 110.6 110.2 111.2 111.5 111.1 111.8 112.1 111.9 25 Tobacco products 21 1.0 105.3 101.3 101.0 102.5 103.6 106.6 115.9 110.5 107.6 107.7 108.1 108.7 108.5 106.3 26 Textile mill products 22 1.8 106.0 105.3 106.3 106.8 105.3 107.1 106.1 106.6 106.1 107.4 107.7 110.0 109.1 108.3 27 Apparel products 23 2.4 97.7 97.8 98.0 99.0 98.1 99.4 97.6 97.6 97.2 97.8 97.9 97.5 97.3 97.6 28 Paper and products 26 3.6 107.1 105.8 107.0 105.8 107.3 109.6 106.3 108.6 106.2 107.6 108.7 108.3 107.8 109.7 29 Printing and publishing .. 27 6.4 113.3 113.8 113.7 113.4 113.0 112.3 111.4 113.2 113.4 113.6 114.6 114.3 114.4 114.2 30 Chemicals and products . 28 8.6 117.1 114.8 115.8 117.0 117.5 118.0 117.6 118.3 118.7 119.9 119.3 120.5 120.8 120.9 31 Petroleum products 29 1.3 108.6 109.7 110.3 108.5 108.9 109.1 104.3 107.4 111.3 110.7 109.1 109.2 111.7 110.9 32 Rubber and plastic products 30 3.0 117.2 115.4 116.5 117.1 117.3 118.5 119.0 117.3 118.3 119.3 119.3 119.7 120.5 120.1 33 Leather and products ... 31 .3 85.3 82.9 84.1 86.2 86.2 87.1 84.8 86.4 87.0 86.0 86.9 87.1 87.3 87.1 34 Mining 7.9 98.8 97.5 99.1 99.7 98.0 100.6 98.8 98.3 98.8 99.4 98.5 98.0 95.1 94.0 35 Metal "lO .3 158.0 155.8 154.2 166.4 154.0 163.7 165.6 158.6 155.7 167.1 159.7 156.9 157.8 157.8 36 Coal 11,12 1.2 105.5 103.0 104.0 107.6 98.6 112.0 107.5 103.7 103.9 106.8 106.7 110.1 103.4 99.2 37 Oil and gas extraction 13 5.7 93.2 91.9 94.2 93.4 93.9 94.0 92.4 93.0 93.9 93.4 92.6 91.3 88.8 88.1 38 Stone and earth minerals .. 14 .7 105.8 107.4 105.9 108.0 105.6 106.2 106.4 105.2 104.9 105.5 104.7 105.6 104.1 104.8 39 Utilities 7.6 108.6 107.7 108.2 107.3 106.7 109.3 108.8 110.2 110.7 112.4 114.2 110.1 114.6 115.6 40 Electric 49i,3PT 6.0 111.6 110.7 111.0 110.2 109.7 113.0 112.7 113.8 113.7 115.3 117.4 112.6 117.4 118.5 41 Gas 492,3PT 1.6 97.6 96.7 97.7 96.6 95.3 95.4 94.1 97.0 99.6 101.3 102.4 100.5 104.1 104.9 SPECIAL AGGREGATES 42 Manufacturing excluding motor vehicles and parts 79.8 110.3 109.3 109.6 110.3 110.1 110.9 110.7 110.5 111.1 111.8 112.1 112.8 113.4 113.6 43 Manufacturing excluding office and computing machines 82.0 107.6 106.8 107.2 108.1 107.6 108.2 108.0 107.6 108.3 109.0 109.2 110.0 110.3 110.2 Gross value (billions of 1982 dollars, annual rates) MAJOR MARKETS 44 Products, total 1,734.8 1,932.5 1,902.8 1,918.7 1,935.5 1,920.1 1,936.2 1,935.9 1,937.0 1,969.8 1,981.4 2,001.9 2,024.1 2,041.6 2,040.3 45 Final 1,350.9 1,529.8 1,501.5 1,518.2 1,532.1 1,519.1 1,530.4 1,532.8 1,534.6 1,563.8 1,572.2 1,593.5 1,612.8 1,627.8 1,625.2 46 Consumer goods 833.4 907.9 896.2 905.6 912.4 901.3 909.3 905.3 907.1 928.2 931.3 935.5 943.4 950.8 945.3 47 Equipment 517.5 621.9 605.3 612.7 619.7 617.8 621.0 627.5 627.5 635.6 640.9 658.0 669.5 677.0 679.9 48 Intermediate 384.0 402.7 401.2 400.5 403.4 401.1 405.8 403.1 402.4 406.0 409.1 408.5 411.3 413.8 415.1 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 1992 1993 IItteemm 11999900 11999911 11999922RR May June July Aug. Sept. Oct." Nov." Dec." Jan. Feb. Private residential real estate activity (thousands of units except as noted) NEW UNITS 1 Permits authorized 1,111 949 1,097 1,054 1,032 1,080 1,076 1,125 1,139 1,126 1,201 1,180 1,138 2 One-family 794 754 913 879 872 879 877 913 959 955 1,044 997 955 3 Two-or-more-family 317 195 184 175 160 201 199 212 180 171 157 183 183 4 Started 1,193 1,014 1,200 1,197 1,141 1,106 1,229 1,218 1,226 1,226 1,286 1,171 1,189 5 One-family 895 840 1,030 1,019 994 961 1,038 1,045 1,079 1,089 1,133 1,051 1,040 6 Two-or-more-family 298 174 169 178 147 145 191 173 147 137 153 120 149 7 Under construction at end of period .. 711 606 612 650" 641" 628 633 637" 645 641 644 646 644 8 One-family 449 434 473 483R 481" 474" 479" 485" 493 498 501 507 510 9 Two-or-more-family 262 173 140 167R 160 154" 154" 152 152 143 143 139 134 10 Completed 1,308 1,091 1,158 L,194R 1,181" 1,234" 1,133" 1,128" 1,137 1,229 1,227 1,130 1,264 11 One-family 966 838 964 L,002R 979" 1,026" 945" 942" 964 1,002 1,016 973 1,054 12 Two-or-more-family 342 253 194 192R 202 208" 188" 186" 173 227 211 157 210 13 Mobile homes shipped 188 171 210 194 194 210 202 217 228 244 266 267 262 Merchant builder activity in one-family units 14 Number sold 535 507 609 552R 584" 622" 625" 672" 637 615 652 569 595 15 Number for sale at end of period ... 321 284R 265 273" 273" 271 270" 267" 264 262 265 267 271 Price of units sold (thousands of dollars) 16 Median 122.3 120.0 121.2 113.0 124.5 118.0 123.5 119.5 125.0 128.9 125.0 118.0 126.7 17 Average 149.0 147.0 144.7 146.0 146.6 137.7 145.3 142.2 148.4 147.2 144.0 139.9 146.3 EXISTING UNITS (one-family) 18 Number sold 3,211 3,219 3,520 3,450" 3,320" 3,380" 3,340" 3,380" 3,710 3,860 4,040 3,780 3,460 Price of units sold (thousands of dollars) 19 Median 95.2 99.7 103.6 103.1" 105.5" 102.8" 110055..00"" 103.5" 103.4 102.7 104.2 103.1 103.6 20 Average 118.3 127.4 130.8 131.0" 133.9" 132.2 132.4" 131.0 129.3 128.8 131.0 129.4 129.6 Value of new construction (millions of dollars)3 CONSTRUCTION 21 Total put in place 442,066 400,955 426,657 427,980 426,730 425,700 419,598 429,291 432,250 436,140 439,948 437,897 438,384 22 Private 334,153 290,707 308,246 306,999 312,182 305,848 301,984 308,813 315,855 317,451 320,720 324,415 324,133 73 Residential 182,856 157,837 184,127 182,892 184,630 181,162 184,201 186,343 192,553 194,801 198,538 201,198 200,650 24 Nonresidential, total 151,297 132,870 124,119 124,107 127,552 124,686 117,783 122,470 123,302 122,650 122,182 123,217 123,483 25 Industrial buildings 23,849 22,281 20,173 21,008 20,285 20,594 17,862 19,019 18,646 19,083 18,721 18,661 18,567 26 Commercial buildings 62,866 48,482 40,417 39,643 43,310 39,988 37,010 39,333 40,195 40,379 38,326 39,331 39,173 27 Other buildings 21,591 20,797 21,514 21,993 21,991 22,228 21,518 22,068 21,545 21,542 21,370 20,952 22,646 28 Public utilities and other 42,991 41,310 42,015 41,463 41,966 41,876 41,393 42,050 42,916 41,646 43,765 44,273 43,097 29 Public 107,909 110,247 118,408 120,981 114,548 119,853 117,614 120,478 116,395 118,689 119,229 113,481 114,251 30 Military 2,664 1,837 2,484 2,668 2,503 2,372 2,438 3,172 2,438 2,612 2,483 2,482 2,424 31 Highway 31,154 29,918 32,759 32,633 31,496 32,682 33,451 34,651 32,056 34,636 31,237 29,694 30,770 32 Conservation and development... 4,607 4,958 5,978 5,767 5,889 5,772 5,382 6,364 5,630 6,210 8,237 5,720 6,678 33 Other 69,484 73,534 77,187 79,913 74,660 79,027 76,343 76,291 76,271 75,231 77,272 75,585 74,379 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 • June 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 1992 1993 1992 19931 lll MMM eeevvv aaa eee rrr lll ... ,,, 11999922 11999933 111999999333111 MMaarr.. MMaarr.. June Sept. Dec. Mar. Nov. Dec. Jan. Feb. Mar. CONSUMER PRICES2 (1982-84=100) 1 All items 3.2 3.1 2.6 2.6 3.2 4.0 .2 .1 .5 .3 .1 143.6 2 Food 1.7 1.4 -1.2 3.2 1.4 2.6 .1 .3 .4 .1 .1 140.1 3 Energy items -.8 3.6 8.6 1.2 1.9 3.1 .2 -.2 .5 -.4 .7 102.5 4 All items less food and energy 3.9 3.4 2.8 2.5 3.8 4.3 .3 .2 .5 .5 .1 151.4 5 Commodities 3.1 2.6 2.5 1.8 1.5 4.6 .1 -.1 .5 .5 .1 135.5 6 Services 4.2 3.7 3.1 2.9 4.7 4.4 .4 .3 .4 .4 .2 160.5 PRODUCER PRICES (1982=100) 7 Finished goods 1.1 2.0 3.3 1.3 -.3 3.9 -,2r .(F .2 .4 .4 124.6 8 Consumer foods -1.5 1.1 -.6 4.3 2.9 -1.9 -,6r 1.2r -.9 -.1 .5 124.6 9 Consumer energy -1.5 4.3 16.6 -3.5 -9.8 16.6 - 1.3r -2.3 .9 1.7 1.3 77.6 10 Other consumer goods 2.9 2.0 2.4 1.5 .9 3.2 .2 .1 .4 .3 .1 139.4 11 Capital equipment 2.1 1.6 .9 1.2 .3 3.8 ,2r .R .3 .5 .2 130.9 Intermediate materials 12 Excluding foods and feeds -.6 2.2 5.0 .7 -1.4 4.6 -,2r .R .3 .5 .3 116.2 13 Excluding energy -.2 1.8 1.7 1.3 -.3 4.3 .or .2 .3 .5 .2 123.8 Crude materials 14 Foods -2.5 .9 2.7 -4.8 4.3 1.9 -.9 1.0 .3 .1 .1 108.2 15 Energy -6.2 7.8 51.5 19.8 -20.2 -6.9 L.R -5.5r .0 -2.5 .8 77.8 16 Other -3.1 8.0 4.8 2.2 1.5 25.4 -,5r 2.1r 3.1 2.2 .4 138.4 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 11999900 11999911 11999922rr Q4 Ql Q2 Q3 Q4r GROSS DOMESTIC PRODUCT 1 5,522.2 5,677.5 5,950.7 5,753.3 5,840.2 5,902.2 5,978.5 6,081.8 By source 7 Personal consumption expenditures 3,748.4 3,887.7 4,095.8 3,942.9 4,022.8 4,057.1 4,108.7 4,194.8 3 464.3 446.1 480.4 450.4 469.4 470.6 482.5 499.1 4 Nondurable goods 1,224.5 1,251.5 1,290.7 1,251.4 1,274.1 1,277.5 1,292.8 1,318.6 5 2,059.7 2,190.1 2,324.7 2,241.1 2,279.3 2,309.0 2,333.3 2,377.1 6 Gross private domestic investment 799.5 721.1 770.4 736.1 722.4 773.2 781.6 804.3 7 Fixed investment 793.2 731.3 766.0 726.9 738.2 765.1 766.6 794.0 8 Nonresidential 577.6 541.1 548.2 528.7 531.0 550.3 549.6 562.1 9 Structures 201.1 180.1 168.4 169.7 170.1 170.3 166.1 167.0 10 Producers' durable equipment 376.5 360.9 379.9 358.9 360.8 380.0 383.5 395.1 11 Residential structures 215.6 190.3 217.7 198.2 207.2 214.8 217.0 231.9 12 Change in business inventories 6.3 -10.2 4.4 9.2 -15.8 88..11 15.0 10.3 13 Nonfarm 3.3 -10.3 2.2 14.5 -13.3 66..44 9.7 6.2 14 Net exports of goods and services -68.9 -21.8 -30.4 -16.0 -8.1 -37.1 -36.0 -40.5 15 557.0 598.2 636.3 622.9 628.1 625.4 639.0 652.7 16 Imports 625.9 620.0 666.7 638.9 636.2 662.5 675.0 693.2 1 1 7 8 Government purchases of goods and services 1, 4 0 2 4 6 3. . 2 4 1, 4 0 4 9 7 0 . . 3 5 1, 4 1 4 1 9 4 . . 1 9 1, 4 0 4 9 0 0 . . 8 3 1, 4 1 4 0 5 3 . . 0 1 1, 4 1 4 0 4 9 . . 8 1 1, 4 1 5 2 5 4 . . 2 2 1, 4 1 5 2 1 3 . . 6 3 19 State and local 616.8 643.2 665.8 649.5 658.0 664.3 669.0 671.7 By major type of product 7 7 ? 0 1 ? Final sales, total 5 2 , , 5 1 9 1 2 6 5 0 0 . . . 9 6 1 2 5, , 6 1 9 8 0 9 7 7 2 . . . 6 7 8 5 2 , , 9 2 9 4 4 6 3 6 0 . . . 9 3 3 2 55 , ,, 1 77 9 8 44 0 8 44 5 . .. . 4 22 7 55 2 ,, , 9 88 2 2 55 3 3 55 3 . .. . 6 99 6 55 2 ,, , 88 2 9 99 3 3 44 3 2 .. . . 11 3 2 55 2, ,, 2 99 9 5 66 4 8 33 3 . . ..5 4 8 5 66 2 ,, , 00 3 9 77 1 7 11 6 5 .. . . 55 8 1 73 1,239.5 1,285.1 1,316.4 1,282.7 1,310.0 1,300.8 1,314.6 1,340.3 74 Services 2,846.4 3,030.3 3,197.1 3,090.3 3,142.2 3,173.4 3,217.8 3,255.1 25 Structures 509.4 464.7 488.8 465.5 480.1 487.6 487.3 500.3 2.6 Change in business inventories 6.3 -10.2 4.4 9.2 -15.8 8.1 15.0 10.3 27 Durable goods -.9 -19.3 -3.5 -8.1 -19.3 9.5 2.7 -6.9 28 Nondurable goods 7.2 9.0 7.9 17.3 3.5 -1.4 12.3 17.2 MEMO 29 Total GDP in 1987 dollars 4,877.5 4,821.0 4,922.6 4,838.5 4,873.7 4,892.4 4,933.7 44,,999900..88 NATIONAL INCOME 30 4,468.3 4,544.2 4,744.1 4,599.1 4,679.4 4,716.5 4,719.6 4,860.7 31 Compensation of employees 3,291.2 3,390.8 3,525.2 3,433.8 3,476.3 3,506.3 3,534.3 3,583.7 37 Wages and salaries 2,742.9 2,812.2 2,916.6 2,845.0 2,877.6 2,901.3 2,923.5 2,963.9 33 Government and government enterprises 514.8 543.5 562.5 546.4 554.6 561.4 564.3 569.6 34 Other 2,228.0 2,268.7 2,354.1 2,298.6 2,323.0 2,339.9 2,359.1 2,394.3 35 Supplement to wages and salaries 548.4 578.7 608.6 588.7 598.7 605.0 610.8 619.8 36 Employer contributions for social insurance 277.4 290.4 302.9 293.7 299.4 301.5 302.9 307.6 37 Other labor income 271.0 288.3 305.7 295.0 299.2 303.6 307.9 312.2 38 Proprietors' income1 366.9 368.0 404.5 377.9 393.6 398.4 397.4 428.4 39 Business and professional 325.2 332.2 364.9 340.0 353.6 359.9 365.9 380.4 40 Farm1 41.7 35.8 39.5 37.9 40.1 38.5 31.5 48.1 41 Rental income of persons2 -12.3 -10.4 4.7 -6.6 -4.5 3.3 6.4 13.6 4? Corporate profits1 361.7 346.3 394.5 347.1 384.0 388.4 374.1 431.3 43 Profits before tax3 355.4 334.7 372.3 332.3 366.1 376.8 354.1 392.2 44 Inventory valuation adjustment -14.2 3.1 -7.4 .7 -5.4 -15.5 -9.7 1.0 45 Capital consumption adjustment 20.5 8.4 29.5 14.1 23.3 27.0 29.7 38.1 46 Net interest 460.7 449.5 415.2 446.9 430.0 420.0 407.3 403.6 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 • June 1993 2.17 PERSONAL INCOME AND SAVING Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates 1991 1992 AAccccoouunntt 11999900 11999911 11999922rr Q4 Ql Q2 Q3 Q4R PERSONAL INCOME AND SAVING 1 Total personal income 4,664.2 4,828.3 5,058.1 4,907.2 4,980.5 5,028.9 5,062.0 5,160.9 2 Wage and salary disbursements 2,742.8 2,812.2 2,918.1 2,845.0 2,877.6 2,901.3 2,923.5 2,969.9 3 Commodity-producing industries 745.6 737.4 743.2 741.5 736.8 743.1 742.4 750.6 556.1 556.9 565.7 563.9 559.9 564.7 565.5 572.8 634.6 647.4 666.8 652.9 660.9 662.9 667.7 675.8 847.8 883.9 945.5 904.3 925.3 933.9 949.1 973.9 7 Government and government enterprises 514.8 543.6 562.5 546.4 554.6 561.4 564.3 569.6 271.0 288.3 305.7 295.0 299.2 303.6 307.9 312.2 9 Proprietors' income1 366.9 368.0 404.5 377.9 393.6 398.4 397.4 428.4 10 Business and professional1 325.2 332.2 364.9 340.0 353.6 359.9 365.9 380.4 11 Farm1 41.7 35.8 39.5 37.9 40.1 38.5 31.5 48.1 12 Rental income of persons2 -12.3 -10.4 4.7 -6.6 -4.5 3.3 6.4 13.6 140.3 137.0 139.3 134.3 133.9 136.6 141.0 145.8 694.5 700.6 670.2 703.3 684.8 675.2 663.2 657.8 15 Transfer payments 685.8 771.1 866.1 799.8 842.7 859.7 874.1 888.0 16 Old-age survivors, disability, and health insurance benefits ... 352.0 382.0 414.1 390.6 405.7 412.1 417.1 421.6 17 LESS: Personal contributions for social insurance 224.8 238.4 250.6 241.5 246.8 249.3 251.5 254.8 18 EQUALS: Personal income 4,664.2 4,828.3 5,058.1 4,907.2 4,980.5 5,028.9 5,062.0 5,160.9 19 LESS: Personal tax and nontax payments 621.3 618.7 627.3 622.3 619.6 617.1 628.8 643.6 20 EQUALS: Disposable personal income 4,042.9 4,209.6 4,430.8 4,284.9 4,360.9 4,411.8 4,433.2 4,517.3 21 LESS: Personal outlays 3,867.3 4,009.9 4,218.1 4,065.5 4,146.3 4,179.5 4,229.9 4,316.9 22 EQUALS: Personal saving 175.6 199.6 212.6 219.4 214.6 232.3 203.3 200.4 MEMO Per capita (19S7 dollars) 19,513.0 19,077.1 19,271.4 19,066.0 19,158.5 1199,,118811..88 1199,,228888..44 1199,,445566..33 24 Personal consumption expenditures 13,043.6 12,824.1 12,973.9 12,802.6 12,930.2 12,893.3 12,973.3 13,098.4 25 Disposable personal income 14,068.0 13,886.0 14,035.0 13,913.0 14,017.0 14,021.0 13,998.0 14,105.0 26 Saving rate (percent) 4.3 4.7 4.8 5.1 4.9 5.3 4.6 4.4 GROSS SAVING 27 Gross saving 718.0 708.2 687.0 698.2 677.5 682.9 696.9 690.7 28 Gross private saving 854.1 901.5 969.2 934.8 950.1 968.1 992.1 966.6 29 Personal saving 175.6 199.6 212.6 219.4 214.6 232.3 203.3 200.4 30 Undistributed corporate profits 75.7 75.8 104.7 78.3 104.0 97.7 91.2 125.7 31 Corporate inventory valuation adjustment -14.2 3.1 -7.4 .7 -5.4 -15.5 -9.7 1.0 Capital consumption allowances 368.3 383.0 394.8 386.3 338866..11 339911..22 440077..22 339944..77 33 Noncorporate 234.6 243.1 258.6 250.7 245.3 247.0 290.4 251.8 34 Government surplus, or deficit (-), national income and -136.1 -193.3 -282.2 -236.6 -272.6 --228855..22 --229955..22 --227766..00 35 Federal -166.2 -210.4 -297.8 -258.7 -289.2 -302.9 -304.4 -294.6 36 State and local 30.1 17.1 15.5 22.0 16.6 17.7 9.2 18.6 37 Gross investment 723.4 730.1 720.4 714.6 706.5 713.8 732.0 729.5 38 Gross private domestic 799.5 721.1 770.4 736.1 722.4 773.2 781.6 804.3 39 Net foreign -76.1 9.0 -49.9 -21.5 -16.0 -59.4 -49.6 -74.7 40 Statistical discrepancy 5.4 21.9 33.4 16.4 29.0 30.9 35.1 38.9 1. With inventory valuation and capital consumption adjustments. SOURCE. U.S. Department of Commerce, Survey of Current Business. 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A53 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data seasonally adjusted except as noted1 1991 1992 1990 1991 1992 Q4 Ql Q2 Q3R Q4P 1 Balance on current account.. -90,428 -3,682 -62,448 -7,218 —6,374r -18,279* -15,771 -22,020 2 Merchandise trade balance -108,853 -73,436 -96,275 -18,539 -17,663r -25,004* -27,634 -25,974 3 Merchandise exports 388,705 415,962 439,272 107,851 107,634r 107,148* 110,119 114,371 4 Merchandise imports -497,558 -489,398 -535,547 -126,390 -125,297r -132,152* -137,753 -140,345 5 Military transactions, net -7,818 -5,524 -2,503 -540 -624 -623 -579 -677 6 Other service transactions, net 39,873 50,821 57,628 13,676 14,450* 13,242* 16,315 13,625 7 Investmentincome.net 19,287 16,429 10,062 2,458 4,394r 1,851* 2,977 839 8 U.S. government grants -17,597 24,487 -13,832 78 -2,620 -3,085 -2,521 -5,605 9 U.S. government pensions and other transfers -2,945 -3,462 -3,736 -1,080 -8301 -1,119* -941 -846 10 Private remittances and other transfers -12,374 -12,996 -13,793 -3,271 -3,481r -3,541* -3,388 -3,382 11 Change in U.S. government assets other than official reserve assets, net (increase, -) 2,304 3,397 -959 -437 -38 -277 -301 -344 12 Change in U.S. official reserve assets (increase, -) -2,158 5,763 3,901 1,225 -1,057 1,464 1,952 1,542 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -192 -177 2,316 -23 -172 -168 -173 2,829 15 Reserve position in International Monetary Fund 731 -367 -2,692 17 111 1 -118 -2,685 16 Foreign currencies -2,697 6,307 4,277 1,232 -9% 1,631 2,243 1,398 17 Change in U.S. private assets abroad (increase, -) -56,467 -71,379 -47,843 -44,947 —3,614r -1,610* -22,892 -19,726 18 Bank-reported claims3 7,469 -4,753 32,372 -23,219 15,859 10,943 -1,274 6,844 19 Nonbank-reported claims -2,477 5,526 3,742 1,269 4,764 3,137 -4,159 20 U.S. purchases of foreign securities, net -28,765 -45,017 -48,646 -11,305 -8,703 -8,221 -13,934 -17,788 21 U.S. direct investments abroad, net -32,694 -27,135 -35,311 -11,692 -15,534r -7,469* -3,525 -8,782 22 Change in foreign official assets in United States (increase, +) .. 33,908 18,407 40,307 12,819 21,192 20,895 -7,269 5,489 23 U.S. Treasury securities 29,576 15,815 18,333 12,619 14,909 11,126 -323 -7,379 2 2 4 5 O O t t h h e e r r U U . . S S . . g g o o v v e e r r n n m m e e n n t t l o i b a l b i i g l a it t i i e o s n 4 s 1, 6 8 6 6 7 6 1 1 , , 3 6 0 0 1 0 4 2 , , 0 4 2 6 5 9 - 1 3 ,0 4 7 4 5 5 % 40 1,6 5 9 9 9 8 9 9 2 1 9 2 8 8 4 7 6 4 26 Other U.S. liabilities reported by U.S. banks3 3,385 -1,668 16,168 -914 5,534 7,547 -7,787 10,874 27 Other foreign official assets5 -1,586 1,359 383 113 -75 -1,000 274 28 Change in foreign private assets in United States (increase, +).. 65,471 48,573 80,093 36,110 -2,577r 26,571* 29,246 26,854 29 U.S. bank-reported liabilities3 16,370 -13,678 14,667 23,465 -4,474 -551 22,905 -3,213 30 U.S. nonbank-reported liabilities 4,906 -405 4,413 725 1,942 1,141 1,330 31 Foreign private purchases of U.S. Treasury securities, net -2,534 16,241 35,077 1,408 -828 10,286 4,870 20,749 32 Foreign purchases of other U.S. securities, net 1,592 34,918 29,884 4,832 4,551 10,333 2,693 12,307 33 Foreign direct investments in United States, net 45,137 11,498 -3,948 5,680 —3,768r 5,362* -2,552 -2,989 34 Allocation of special drawing rights 0 0 0 0 0 0 0 0 3 3 5 6 Di D sc u r e e p to a n s c e y a sonal adjustment 47,370 -1,078 -13,051 2,4 6 4 1 7 3 -7 4 , , 5 9 3 01 2 * r -28 1 ,7 ,2 6 9 4 6 * * - 1 6 5 , , 6 0 4 3 0 5 8,2 4 0 3 5 9 37 Before seasonal adjustment 47,370 — I,078 -13,052 1,835 -12,433 -30,060 21,675 7,767 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) -2,158 5,763 3,901 1,225 -1,057 1,464 1,952 1,542 39 Foreign official assets in United States, excluding line 25 (increase, +) 32,042 16,807 37,838 13,163 21,096 20,297 -8,198 4,643 40 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) 1,707 -5,604 5,402 1,023 2,459 -2,125 3,062 2,006 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 • June 1993 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data seasonally adjusted 1992 1993 IItteemm 11999900 11999911 11999922 Aug. Sept. Oct. Nov. Dec.r Jan.r Feb.P 1 Exports of domestic and foreign merchandise, excluding grant-aid shipments 393,592 421,730 448,115 35,799 37,882 39,072 38,187 39,671 37,148 37,181 2 General imports including merchandise for immediate consumption plus entries into bonded warehouses 495,311 487,129 532,380 44,974 46,551 46,324 45,535 46,562 44,306 44,378 3 Trade balance -101,718 -65,399 -84,265 -9,174 -8,669 -7,252 -7,348 -6,891 -7,159 -7,197 1. Government and nongovernment shipments of merchandise between foreign the United States. Since Jan. 1, 1987, merchandise trade data have been released countries and the fifty states, including the District of Columbia, Puerto Rico, the forty-five days after the end of the month; the previous month is revised to reflect U.S. Virgin Islands, and U.S. Foreign Trade Zones. Data exclude (1) shipments late documents. among the United States, Puerto Rico, the U.S. Virgin Islands, and other U.S. Data in this table differ from figures for merchandise trade shown in the U.S. affiliated insular areas, (2) shipments to U.S. Armed Forces and diplomatic balance of payments accounts (table 3.10, lines 2 to 4) primarily for reasons of missions abroad for their own use, (3) U.S. goods, returned to the United States by coverage. For both exports and imports a large part of the difference is the its Armed Forces, (4) personal and household effects of travelers, and (5) treatment of military sales and purchases. The militap' sales to foreigners in-transit shipments. Data reflect the total arrival of merchandise from foreign (exports) and purchases from foreigners (imports) that are included in this table as countries that immediately entered consumption channels, warehouses, or U.S. merchandise trade are shifted, in the balance of payments accounts, from Foreign Trade Zones (general imports). Import data are Customs value; export "merchandise trade" into the broader category "military transactions." data are F.A.S. value. Beginning in 1990, data for U.S. exports to Canada are SOURCE. FT900, U.S. Merchandise Trade, (U.S. Department of Commerce, derived from import data compiled by Canada; similarly, in Canadian statistics, Bureau of the Census). Canadian exports to the United States are derived from import data compiled by 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 1992 1993 AAsssseett 11998899 11999900 11999911 Sept. Oct. Nov. Dec. Jan. Feb. Mar." 1 Total 74,609 83,316 77,719 78,527 74,207 72,231 71,323 71,962 72,847 74,378 2 Gold stock, including Exchange Stabilization Fund1 11,059 11,058 11,057 11,059 11,060 11,059 11,056 11,055 11,055 11,054 3 Special drawing rights2'3 9,951 10,989 11,240 12,111 11,561 11,495 8,503 8,546 8,651 88,,778877 4 Reserve position in International Monetary Fund2 9,048 9,076 9,488 9,778 9,261 8,781 11,759 12,079 12,021 12,184 5 Foreign currencies 44,551 52,193 45,934 45,579 42,325 40,896 40,005 40,282 41,120 42,353 1. Gold held "under earmark" at Federal Reserve Banks for foreign and 5 currencies have been used. U.S. SDR holdings and reserve positions in the IMF international accounts is not included in the gold stock of the United States; see also have been valued on this basis since July 1974. table 3.13, line 3. Gold stock is valued at $42.22 per fine troy ounce. 3. Includes allocations of SDRs by the International Monetary Fund on Jan. 1 2. Special drawing rights (SDRs) are valued according to a technique adopted of the year indicated, as follows: 1970—$867 million; 1971—$717 million; 1972— by the International Monetary Fund (IMF) in July 1974. Values are based on a $710 million; 1979—$1,139 million; 1980—$1,152 million; 1981—$1,093 million; weighted average of exchange rates for the currencies of member countries. From plus net transactions in SDRs. July 1974 through December 1980, 16 currencies were used; since January 1981, 4. Valued at current market exchange rates. 3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS1 Millions of dollars, end of period 1992 1993 AAsssseett 11998899 11999900 11999911 Sept. Oct. Nov. Dec. Jan. Feb. Mar." 1 Deposits 589 369 968 546 415 229 205 325 296 317 Held in custody 2 U.S. Treasury securities 224,911 278,499 281,107 306,971 311,538 308,959 314,481 324,356 329,183 326,486 3 Earmarked gold 13,456 13,387 13,303 13,241 13,201 13,192 13,686 13,077 13,074 12,989 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 1993 AAccccoouunntt 11998899 11999900 11999911 Aug.r Sept.r Oct/ Nov. Dec/ Jan. Feb. ASSETS All foreign countries 1 Total payable in any currency 545,366 556,925 548,901 544,887 545,388 554,253 566,721r 542,286 543,760 554,280 7 Claims on United States 198,835 188,4% 176,301 163,103 167,419 174,986 177,443R 166,798 169,278 169,765 3 Parent bank 157,092 148,837 137,509 128,267 134,119 138,940 141,542R 132,275 134,217 136,253 4 Other banks in United States 17,042 13,296 12,884 9,181 8,083 10,683 lO.O^ 9,703 9,571 9,249 5 Nonbanks 24,701 26,363 25,908 25,655 25,217 25,363 25,882 24,820 25,490 24,263 6 Claims on foreigners 300,575 312,449 303,934 321,707 320,111 319,139 328,592R 318,071 314,737 320,407 7 Other branches of parent bank 113,810 135,003 111,729 116,604 118,952 115,521 125,143 123,256 116,325 117,862 8 Banks 90,703 72,602 81,970 87,347 83,756 86,560 86,086R 82,190 81,811 84,439 9 Public borrowers 16,456 17,555 18,652 20,450 20,511 20,809 20,378 20,756 19,984 19,822 10 Nonbank foreigners 79,606 87,289 91,583 97,306 %,892 %,249 %,985 91,869 %,617 98,284 11 Other assets 45,956 55,980 68,666 60,077 57,858 60,128 60,686R 57,417 59,745 64,108 12 Total payable in U.S. dollars 382,498 379,479 363,941 341,109 347,181 364,080 374,398r 365,800 353,564 361,251 N Claims on United States 191,184 180,174 169,662 157,469 161,463 169,290 171,938R 162,125 164,681 165,234 14 Parent bank 152,294 142,962 133,476 124,737 130,446 136,156 138,424R 129,329 131,553 133,733 15 Other banks in United States 16,386 12,513 12,025 8,876 7,476 9,360 9,291R 9,266 9,214 8,704 16 Nonbanks 22,504 24,699 24,161 23,856 23,541 23,774 24,223 23,530 23,914 22,797 17 Claims on foreigners 169,690 174,451 167,010 161,663 166,762 173,457 182,347R 183,555 171,041 177,265 18 Other branches of parent bank 82,949 95,298 78,114 70,689 72,348 76,098 83,902 83,117 77,606 80,220 19 Banks 48,396 36,440 41,635 40,350 42,274 45,436 45,931R 47,250 41,450 43,067 20 Public borrowers 10,961 12,298 13,685 13,686 13,990 13,966 13,995 14,313 13,883 13,710 71 Nonbank foreigners 27,384 30,415 33,576 36,938 38,150 37,957 38,519 38,875 38,102 40,268 22 Other assets 21,624 24,854 27,269 21,977 18,956 21,333 20,113R 20,120 17,842 18,752 United Kingdom 23 Total payable in any currency 161,947 184,818 175,599 165,754 161,966 168,063 168,333 165,591 164,360 165,132 24 Claims on United States 39,212 45,560 35,257 37,511 35,891 39,558 38,358 36,403 37,609 32,380 25 Parent bank 35,847 42,413 31,931 34,593 32,929 36,413 35,027 33,460 34,290 30,240 7.6 Other banks in United States 1,058 792 1,267 744 1,067 1,400 925 1,298 886 783 71 Nonbanks 2,307 2,355 2,059 2,174 1,895 1,745 2,406 1,645 2,433 1,357 28 Claims on foreigners 107,657 115,536 109,692 108,895 107,675 109,919 113,193 111,623 108,362 112,959 29 Other branches of parent bank 37,728 46,367 35,735 37,732 38,894 40,594 45,092 46,165 42,894 43,856 30 Banks 36,159 31,604 36,394 37,711 36,039 36,701 34,559 33,399 33,513 36,601 31 Public borrowers 3,293 3,860 3,306 3,046 3,371 3,692 3,370 3,329 3,059 2,542 37 Nonbank foreigners 30,477 33,705 34,257 30,406 29,371 28,932 30,172 28,730 28,8% 29,960 33 Other assets 15,078 23,722 30,650 19,348 18,400 18,586 16,782 17,565 18,389 19,793 34 Total payable in U.S. dollars 103,208 116,762 105,974 99,661 100,664 107,342 109,479 109,449 101,209 99,755 35 Claims on United States 36,404 41,259 32,418 34,948 33,618 37,359 35,956 34,508 35,481 30,390 16 Parent bank 34,329 39,609 30,370 32,786 31,578 35,299 33,765 32,186 33,070 29,020 37 Other banks in United States 843 334 822 625 711 769 438 1,022 684 428 38 Nonbanks 1,232 1,316 1,226 1,537 1,329 1,291 1,753 1,300 1,727 942 39 Claims on foreigners 59,062 63,701 58,791 55,812 59,338 61,658 65,164 66,335 59,339 63,234 40 Other branches of parent bank 29,872 37,142 28,667 26,825 28,225 30,217 34,434 34,124 30,823 31,395 41 Banks 16,579 13,135 15,219 15,565 16,800 17,269 16,848 17,089 14,150 16,800 42 Public borrowers 2,371 3,143 2,853 2,353 2,604 2,515 2,501 2,349 2,154 1,883 43 Nonbank foreigners 10,240 10,281 12,052 11,069 11,709 11,657 11,381 12,773 12,212 13,156 44 Other assets 7,742 11,802 14,765 8,901 7,708 8,325 8,359 8,606 6,389 6,131 Bahamas and Cayman Islands 45 Total payable in any currency 176,006 162,316 168,326 144,327 145,786 154,293 156,176r 147,422 144,894 151,175 46 Claims on United States 124,205 112,989 115,244 94,659 96,911 102,726 104,245r %,280 %,976 102,836 47 Parent bank 87,882 77,873 81,520 64,454 68,309 72,207 73,856r 66,608 67,219 73,825 48 Other banks in United States 15,071 11,869 10,907 8,060 6,562 8,199 8,282r 7,828 7,%2 7,892 49 Nonbanks 21,252 23,247 22,817 22,145 22,040 22,320 22,107 21,844 21,795 21,119 50 Claims on foreigners 44,168 41,356 45,229 41,486 41,884 42,844 44,156r 44,509 41,185 40,821 51 Other branches of parent bank 11,309 13,416 11,098 8,5% 7,753 7,287 8,238 7,293 7,041 7,311 57 Banks 22,611 16,310 20,174 17,570 18,412 19,840 20,122r 21,212 18,464 17,440 53 Public borrowers 5,217 5,807 7,161 7,152 7,128 7,146 7,209 7,786 7,564 7,422 54 Nonbank foreigners 5,031 5,823 6,7% 8,168 8,591 8,571 8,587 8,218 8,116 8,648 55 Other assets 7,633 7,971 7,853 8,182 6,991 8,723 7,775r 6,633 6,733 7,518 56 Total payable in U.S. dollars 170,780 158,390 163,771 138,584 140,104 149,304 151,436r 142,861 140,332 146,809 1. Since June 1984, reported claims held by foreign branches have been million to $150 million equivalent in total assets, the threshold now applicable to reduced by an increase in the reporting threshold for "shell" branches from $50 all reporting branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • June 1993 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data1—Continued 1992 1993 Aug.r Sept.r Oct.r Nov. Dec.' Jan. Feb. LIABILITIES All foreign countries 57 Total payable in any currency 545,366 556,925 548,901 544,887 545,388 554,253 566,721r 542,286 543,760 554,280 58 Negotiable certificates of deposit (CDs) .. 23,500 18,060 16,284 14,246 12,389 12,056 12,342 10,032 12,320 11,872 59 To United States 197,239 189,412 198,121 179,476 185,380 188,979 188,004R 189,332 176,112 184,042 60 Parent bank 138,412 138,748 136,431 126,976 127,573 132,999 131,806R 134,227 122,512 124,010 61 Other banks in United States 11,704 7,463 13,260 10,971 12,408 12,281 13,392R 12,182 12,829 12,373 62 Nonbanks 47,123 43,201 48,430 41,529 45,399 43,699 42,806R 42,923 40,771 47,659 63 To foreigners 296,850 311,668 288,254 314,823 312,390 315,400 330,314 309,704 321,052 319,638 64 Other branches of parent bank 119,591 139,113 112,033 120,509 120,714 118,001 126,018 125,160 120,178 119,601 65 Banks 76,452 58,986 63,097 68,522 68,493 70,439 74,536 62,189 67,843 70,056 66 Official institutions 16,750 14,791 15,596 18,237 16,720 20,572 20,645 19,731 23,655 21,469 67 Nonbank foreigners 84,057 98,778 97,528 107,555 106,463 106,388 109,115 102,624 109,376 108,512 68 Other liabilities 27,777 37,785 46,242 36,342 35,229 37,818 36,061 33,218 34,276 38,728 69 Total payable in U.S. dollars 396,613 383,522 370,561 346,223 346,581 364,969 372,320' 368,212 353,411 363,285 70 Negotiable CDs 19,619 14,094 11,909 8,755 7,628 6,710 7,503 6,238 7,102 6,640 71 To United States 187,286 175,654 185,286 166,609 171,086 176,013 175,857' 178,562 164,595 172,110 72 Parent bank 132,563 130,510 129,669 119,521 119,714 125,491 124,658' 127,836 115,894 117,115 73 Other banks in United States 10,519 6,052 11,707 9,866 11,117 11,409 12,246R 11,512 11,710 11,418 74 Nonbanks 44,204 39,092 43,910 37,222 40,255 39,113 38,953R 39,214 36,991 43,577 75 To foreigners 176,460 179,002 158,993 157,482 155,266 165,960 175,293 171,676 169,077 170,756 76 Other branches of parent bank 87,636 98,128 76,601 74,060 73,208 77,197 82,957 83,700 79,144 79,594 77 Banks 30,537 20,251 24,156 22,973 22,822 25,210 28,404 26,118 23,281 25,571 78 Official institutions 9,873 7,921 10,304 10,713 9,939 12,097 12,342 12,430 14,094 14,034 79 Nonbank foreigners 48,414 52,702 47,932 49,736 49,297 51,456 51,590 49,428 52,558 51,557 80 Other liabilities 13,248 14,772 14,373 13,377 12,601 16,286 13,667 11,736 12,637 13,779 United Kingdom 81 Total payable in any currency 161,947 184,818 175,599 165,754 161,966 168,063 168,333 165,591 164,360 165,132 82 Negotiable CDs 20,056 14,256 11,333 8,083 7,266 6,064 5,636 4,517 5,774 5,597 83 To United States 36,036 39,928 37,720 35,527 35,885 35,399 34,532 39,174 33,028 33,092 84 Parent bank 29,726 31,806 29,834 27,695 27,528 27,427 26,471 31,100 25,098 24,250 85 Other banks in United States 1,256 1,505 1,438 1,632 1,670 1,341 1,689 1,065 1,742 1,633 86 Nonbanks 5,054 6,617 6,448 6,200 6,687 6,631 6,372 7,009 6,188 7,209 87 To foreigners 92,307 108,531 98,167 104,892 101,999 109,358 113,395 107,176 111,103 110,514 88 Other branches of parent bank 27,397 36,709 30,054 31,234 30,756 33,696 35,560 35,983 35,376 35,143 89 Banks 29,780 25,126 25,541 26,435 25,823 28,792 30,609 25,231 25,%5 27,227 90 Official institutions 8,551 8,361 9,670 10,699 9,131 11,687 11,438 12,090 14,188 12,938 91 Nonbank foreigners 26,579 38,335 32,902 36,524 36,289 35,183 35,788 33,872 35,574 35,206 92 Other liabilities 13,548 22,103 28,379 17,252 16,816 17,242 14,770 14,724 14,455 15,929 93 Total payable in U.S. dollars 108,178 116,094 108,755 98,698 95,652 104,521 105,699 108,170 100,731 101,342 94 Negotiable CDs 18,143 12,710 10,076 5,890 5,689 4,213 4,494 3,894 4,770 4,444 95 To United States 33,056 34,697 33,003 30,357 30,330 31,266 30,204 35,417 28,619 28,874 96 Parent bank 28,812 29,955 28,260 25,873 25,700 26,021 25,160 29,957 23,766 23,097 97 Other banks in United States 1,065 1,156 1,177 1,088 992 866 906 709 1,063 1,097 98 Nonbanks 3,179 3,586 3,566 3,396 3,638 4,379 4,138 4,751 3,790 4,680 99 To foreigners 50,517 60,014 56,626 54,381 51,916 59,938 62,899 62,048 60,033 59,643 100 Other branches of parent bank 18,384 25,957 20,800 18,983 17,986 22,080 22,8% 22,026 20,807 20,516 101 Banks 12,244 9,488 11,069 9,289 9,112 10,956 13,050 12,540 9,740 10,359 102 Official institutions 5,454 4,692 7,156 6,956 6,156 8,142 8,459 8,847 10,114 9,%7 103 Nonbank foreigners 14,435 19,877 17,601 19,153 18,662 18,760 18,494 18,635 19,372 18,801 104 Other liabilities 6,462 8,673 9,050 8,070 7,717 9,104 8,102 6,811 7,309 8,381 Bahamas and Cayman Islands 105 Total payable in any currency 176,006 162,316 168,326 144,327 145,786 154,293 156,176' 147,422 144,894 151,175 106 Negotiable CDs 678 646 1,173 1,814 872 1,394 1,939 1,350 1,355 1,142 107 To United States 124,859 114,738 129,872 106,049 109,296 114,327 116,587' 111,749 108,037 110,616 108 Parent bank 75,188 74,941 79,394 64,190 63,057 69,537 71,269" 67,235 65,009 62,223 109 Other banks in United States 8,883 4,526 10,231 8,522 9,801 10,303 10,944' 10,445 10,265 10,059 110 Nonbanks 40,788 35,271 40,247 33,337 36,438 34,487 34,374' 34,069 32,763 38,334 111 To foreigners 47,382 44,444 35,200 34,883 34,060 34,896 35,411 32,556 33,766 37,690 112 Other branches of parent bank 23,414 24,715 17,388 17,315 16,071 15,441 16,287 15,169 15,411 18,056 113 Banks 8,823 5,588 5,662 6,244 6,788 6,988 7,574 6,422 6,350 7,%7 114 Official institutions 1,097 622 572 935 984 1,058 932 805 932 1,036 115 Nonbank foreigners 14,048 13,519 11,578 10,389 10,217 11,409 10,618 10,160 11,073 10,631 116 Other liabilities 3,087 2,488 2,081 1,581 1,558 3,676 2,239 1,767 1,736 1,727 117 Total payable in U.S. dollars 171,250 157,132 163,603 139,100 140,298 149,320 151,527' 143,150 140,734 146,875 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 1992r 1993 IItteemm 11999900 11999911 Aug. Sept. Oct. Nov. Dec. Jan.r Feb.P 1 Total1 344,529 360,530 407,154 393,687 405,465 394,845 398,672 411,816 412,534 By type 2 Liabilities reported by banks in the United States 39,880 38,3% 52,561 43,604 60,933 54,007 54,823 63,791 65,753 3 U.S. Treasury bills and certificates 79,424 92,692 113,307 113,634 104,286 100,702 104,5% 111,540 113,594 U.S. Treasury bonds and notes 202,487 203,677 213,407 208,924 211,875 211,272 210,553 207,588 203,224 5 Nonmarketable 4,491 4,858 4,476 4,505 4,473 4,503 4,532 4,563 4,592 6 U.S. securities other than U.S. Treasury securities 18,247 20,907 23,403 23,020 23,898 24,361 24,168 24,334 25,371 By area 7 Western Europe1 167,191 168,365 196,511 186,364 194,551 184,207 188,693 196,239 198,958 8,671 7,460 9,990 7,027 8,111 6,381 7,920 8,411 7,886 9 Latin America and Caribbean 21,184 33,554 38,389 37,736 38,678 38,945 40,015 41,388 42,502 10 Asia 138,096 139,465 151,785 151,667 153,555 154,493 152,148 156,211 154,015 1,434 2,092 2,860 3,360 3,481 3,779 3,565 3,705 3,866 12 Other countries® 7,955 9,592 7,617 7,531 7,087 7,038 6,329 5,860 5,305 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 1992r IItteemm 11998899 11999900 11999911 Mar. June Sept. Dec. 1 Banks' liabilities 67,835 70,477 75,129 68,434 71,240 84,487 73,225 2 Banks' claims 65,127 66,796 73,195 60,424 58,262 72,003 62,740 3 Deposits 20,491 29,672 26,192 23,270 23,466 28,074 24,186 4 Other claims 44,636 37,124 47,003 37,154 34,7% 43,929 38,554 5 Claims of banks' domestic customers 3,507 6,309 3,398 2,%2 4,375 3,987 4,432 1. Data on claims exclude foreign currencies held by U.S. monetary 2. Assets owned by customers of the reporting bank located in the United authorities. States that represent claims on foreigners held by reporting banks for the accounts of the domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • June 1993 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 1992r 1993 IItteemm 11999900 11999911 11999922rr Aug. Sept. Oct. Nov. Dec. Jan. Feb." HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 759,634 756,066 809,886 769,519 795,856 793,298 799,590 809,886 801,355 813,245 2 Banks' own liabilities 577,229 575,374 606,135 564.732 587,139 590,791 601,073 606,135 591,971 604,524 3 Demand deposits 21,723 20,321 21,815 21,678 22,479 21,302 21,935 21,815 21,118 22,325 4 Time deposits 168,017 159,649 160,541 143,663 143,336 157,488 156,814 160,541 150,310 147,669 5 Other3 65,822 66,305 93,614 87,631 84,107 92,315 96,294 93,614 103,607 105,048 6 Own foreign offices4 321,667 329,099 330,165 311,760 337,217 319,686 326,030 330,165 316,936 329,482 7 Banks' custodial liabilities5 182,405 180,692 203,751 204,787 208,717 202,507 198,517 203,751 209,384 208,721 8 U.S. Treasury bills and certificates6 96,796 110,734 127,649 135,744 113344,,889944 112277,,999933 112222,,448800 112277,,664499 113333,,779999 113355,,339999 9 Other negotiable and readily transferable instruments7 17,578 18,664 21,982 18,541 19,349 20,043 21,755 21,982 22,969 20,735 10 Other 68,031 51,294 54,120 50,502 54,474 54,471 54,282 54,120 52,616 52,587 11 Nonmonetary international and regional organizations8 5,918 8,981 9,350 12,914 11,285 10,727 9,915 9,350 11,086 11,308 12 Banks' own liabilities 4,540 6,827 6,951 9,807 8,648 7,001 6,982 6,951 7,824 8,654 13 Demand deposits 36 43 46 21 24 73 58 46 39 47 14 Time deposits 1,050 2,714 3,214 2,620 2,577 1,899 2,561 3,214 2,7% 2,321 15 Other3 3,455 4,070 3,691 7,166 6,047 5,029 4,363 3,691 4,989 6,286 16 Banks' custodial liabilities5 1,378 2,154 2,399 3,107 2,637 3,726 2,933 2,399 3,262 2,654 17 U.S. Treasury bills and certificates6 364 1,730 1,908 22,,665544 11,,999911 33,,008855 22,,337711 11,,990088 22,,777744 22,,334488 18 Other negotiable and readily transferable instruments 1,014 424 486 453 646 641 561 486 488 306 19 Other 0 0 5 0 0 0 1 5 0 0 20 Official institutions9 119,303 131,088 159,419 165,868 157,238 165,219 154,709 159,419 175,331 179,347 21 Banks' own liabilities 34,910 34,411 51,058 49,009 40,453 57,225 50,027 51,058 59,576 61,986 22 Demand deposits 1,924 2,626 1,274 1,676 1,761 1,723 1,492 1,274 1,396 1,763 23 Time deposits 14,359 16,504 17.828 18,039 16,125 19,741 17,834 17,828 18,685 19,158 24 Other3 18,628 15,281 31,956 29,294 22,567 35,761 30,701 31,956 39,495 41,065 25 Banks' custodial liabilities5 84,393 96,677 108,361 116,859 116,785 107,994 104,682 108,361 115,755 117,361 26 U.S. Treasury bills and certificates6 79,424 92,692 104,596 113,307 113,634 104,286 110000,,770022 110044,,559966 111111,,554400 111133,,559944 27 Other negotiable and readily transferable instruments7 4,766 3,879 3,726 3,466 2,922 3,595 3,784 3,726 4,054 3,648 28 Other 203 106 39 86 229 113 196 39 161 119 29 Banks10 540,805 522,265 546,388 501,940 537,936 525,221 543,980 546,388 521,800 529,700 30 Banks' own liabilities 458,470 459,335 475,236 435,244 466,617 454,183 472,949 475,236 453,027 462,202 31 Unaffiliated foreign banks 136,802 130,236 145,071 123,484 129,400 134,497 146,919 145,071 136,091 132,720 32 Demand deposits 10,053 8,648 10,164 9,821 10,443 9,741 10,088 10,164 9,920 10,995 33 Time deposits 88,541 82,857 90,413 72,820 74,075 85,729 87,690 90,413 80,562 78,228 34 Other3 38,208 38,731 44,494 40,843 44,882 39,027 49,141 44,494 45,609 43,497 35 Own foreign offices4 321,667 329,099 330,165 311,760 337,217 319,686 326,030 330,165 316,936 329,482 36 Banks' custodial liabilities5 82,335 62,930 71,152 66,696 71,319 71,038 71,031 71,152 68,773 67,498 37 U.S. Treasury bills and certificates6 10,669 7,471 11,087 10,429 1100,,990055 1100,,448811 1100,,444444 1111,,008877 99,,668855 99,,229966 38 Other negotiable and readily transferable instruments7 5,341 5,694 7,568 6,920 7,373 7,325 7,572 7,568 7,708 6,692 39 Other 66,325 49,765 52,497 49,347 53,041 53,232 53,015 52,497 51,380 51,510 40 Other foreigners 93,608 93,732 94,729 88,797 89,397 92,131 90,986 94,729 93,138 92,890 41 Banks' own liabilities 79,309 74,801 72,890 70,672 71,421 72,382 71,115 72,890 71,544 71,682 42 Demand deposits 9,711 9,004 10,331 10,160 10,251 9,765 10,297 10,331 9,763 9,520 43 Time deposits 64,067 57,574 49,086 50,184 50,559 50,119 48,729 49,086 48,267 47,962 44 Other3 5,530 8,223 13,473 10,328 10,611 12,498 12,089 13,473 13,514 14,200 45 Banks' custodial liabilities5 14,299 18,931 21,839 18,125 17,976 19,749 19,871 21,839 21,594 21,208 46 U.S. Treasury bills and certificates6 6,339 8,841 10,058 9,354 88,,336644 10,141 88,,996633 1100,,005588 99,,880000 1100,,116611 47 Other negotiable and readily transferable instruments7 6,457 8,667 10,202 7,702 8,408 8,482 9,838 10,202 10,719 10,089 48 Other 1,503 1,423 1,579 1,069 1,204 1,126 1,070 1,579 1,075 958 MEMO 49 Negotiable time certificates of deposit in custody for foreigners 7,073 7,456 9,114 7,279 7,452 7,672 7,716 9,114 9,724 9,499 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 1993 11999900 11999911 11999922rr Aug. Sept. Oct. Nov. Dec.* Jan. Feb." AREA 1 Total, all foreigners 759,634 756,066 809,886 769,519* 795,856* 793,298* 799,590* 809,886 801,355 813,245 2 Foreign countries 753,716 747,085 800,536 756,605* 784,571* 782,571* 789,675* 800,536 790,269 801,937 3 Europe 254,452 249,097 308,391 289,957* 290,435* 306,547* 311,875* 308,391 303,695 304,126 4 Austria 1,229 1,193 1,613 1,427 1,456 1,584 1,358 1,613 1,158 1,937 5 Belgium and Luxembourg 12,382 13,337 20,572 18,455* 17,948* 21,183* 19,662* 20,572 21,255 19,624 6 Denmark 1,399 937 3,060 1,329 1,760 1,788 1,481 3,060 1,885 2,835 7 Finland 602 1,341 1,299 976 685 949 1,144 1,299 1,862 2,049 8 France 30,946 31,808 41,459 29,461* 32,158* 34,881* 39,968* 41,459 34,285 31,740 9 Germany 7,485 8,619 18,631 11,032 14,739 13,810 15,401 18,631 20,685 18,715 10 Greece 934 765 910 934 1,069 872 749 910 815 758 11 Italy 17,735 13,541 10,041 10,992 12,236 11,104 12,494 10,041 8,750 10,704 12 Netherlands 5,350 7,161 7,372 10,432* 10,407* 8,%2* 8,411 7,372 8,731 11,778 13 Norway 2,357 1,866 3,319 1,341 1,851 1,577 2,014 3,319 3,550 2,521 14 Portugal 2,958 2,184 2,465 2,664 2,245 2,258 2,255 2,465 2,518 2,508 15 Spain 7,544 11,391 9,789 14,904 15,589 14,602 10,383 9,789 14,865 17,163 16 Sweden 1,837 2,222 2,986 4,162 3,194 5,312* 4,485 2,986 2,%2 2,046 17 Switzerland 36,690 37,238 39,440 40,569 39,314 38,240* 40,791 39,440 41,555 39,490 18 Turkey 1,169 1,598 2,666 2,021 2,087 2,524 2,360 2,666 2,533 2,862 19 United Kingdom 109,555 100,292 112,434 111,569* 115,817* 114,705* 117,353* 112,434 106,700 105,885 20 Yugoslavia11 928 622 504 554 567 577 575 504 506 512 21 Others in Western Europe12 11,689 9,274 25,832 22,372* 12,867 27,228 26,691 25,832 25,926 28,170 22 Russia 119 241 577 525 499 450 601 577 436 447 23 Other Eastern Europe13 1,545 3,467 3,422 4,238 3,947 3,941 3,699 3,422 2,718 2,382 24 Canada 20,349 21,605 22,746 20,410 22,668 21,378 22,052 22,746 21,467 22,870 25 Latin America and Caribbean 332,997 345,529 315,990 311,047* 316,995* 310,015* 309,750* 315,990 313,071 319,446 26 Argentina 7,365 7,753 9,476 9,397 9,065 9,387 8,715 9,476 10,790 10,606 27 Bahamas 107,386 100,622 82,213 82,567* 77,633* 85,878* 86,310* 82,213 84,557 86,848 28 Bermuda 2,822 3,178 7,079 4,782 4,275 5,889 6,355* 7,079 6,319 6,473 29 Brazil 5,834 5,704 5,584 5,283 5,393 5,828 5,235 5,584 5,321 5,551 30 British West Indies 147,321 163,620 151,934 148,212* 159,838* 143,311* 143,084* 151,934 146,875 149,158 31 Chile 3,145 3,283 3,030 3,393 3,440 3,253 2,925 3,030 3,638 3,420 32 Colombia 4,492 4,661 4,579 4,711 4,792 4,767 4,677 4,579 4,438 4,417 33 Cuba 11 2 3 9 33 10 11 3 2 3 34 Ecuador 1,379 1,232 987 1,214 1,073 1,026 1,016 987 945 886 35 Guatemala 1,541 1,594 1,375 1,432 1,416 1,376 1,323 1,375 1,311 1,311 36 Jamaica 257 231 371 272 309 274 271 371 294 279 37 Mexico 16,650 19,957 19,432 20,046 19,650 19,216* 19,543 19,432 20,023 21,207 38 Netherlands Antilles 7,357 5,592 5,208 4,825 4,751 4,708 6,101 5,208 4,352 4,871 39 Panama 4,574 4,695 4,190 4,303* 4,5%* 4,116* 3,976* 4,190 4,013 4,209 40 Peru 1,294 1,249 1,068 1,136* 1,152* 1,141* 1,047* 1,068 1,052 1,045 41 Uruguay 2,520 2,0% 1,955 2,182 2,019 2,087 2,092 1,955 1,898 2,098 42 Venezuela 12,271 13,181 11,370 10,802 11,101 11,504 11,003 11,370 11,106 10,943 43 Other 6,779 6,879 6,136 6,481 6,459 6,244* 6,066* 6,136 6,137 6,121 44 Asia 136,844 120,462 143,359 125,248* 144,793* 134,385* 136,111* 143,359 141,524 144,656 China 45 People's Republic of China 2,421 2,626 4,343 2,508 2,480 2,582 2,559* 4,343 4,103 4,442 46 Republic of China (Taiwan) 11,246 11,491 7,239 10,362 9,431* 8,616* 8,750* 7,239 7,940 7,641 47 Hong Kong 12,754 14,269 18,445 17,798* 18,682* 17,542* 16,322* 18,445 17,510 19,363 48 India 1,233 2,418 1,3% 1,480 1,372 1,234 1,210* 1,3% 1,323 1,377 49 Indonesia 1,238 1,463 1,480 958 1,507 1,260* 1,217* 1,480 1,392 1,462 50 Israel 2,767 2,015 3,775 2,620 2,613 2,208 3,691 3,775 3,389 3,394 51 Japan 67,076 47,069 58,332 45,693* 64,606r 56,101r 55,356r 58,332 56,007 58,935 52 Korea (South) 2,287 2,587 3,336 3,644 3,673* 3,529* 3,698r 3,336 3,415 3,459 53 Philippines 1,585 2,449 2,275 1,920 2,028 2,275 2,223* 2,275 2,350 2,746 54 Thailand 1,443 2,252 5,582 4,624 4,517 5,082 5,797 5,582 5,722 5,375 55 Middle Eastern oil-exporting countries 15,829 15,752 21,446 18,938 19,977 19,040 20,266 21,446 19,877 20,498 56 Other 16,965 16,071 15,710 14,703 13,907 14,916* 15,022 15,710 18,4% 15,964 57 Africa 4,630 4,825 5,881 5,314 5,592 5,843 6,062 5,881 5,913 6,364 58 Egypt 1,425 1,621 2,472 2,143 2,243 2,598 2,601 2,472 2,756 3,077 59 Morocco 104 79 76 93 100 98 93 76 88 92 60 South Africa 228 228 190 275 190 240 214 190 158 319 61 Zaire 53 31 19 24 14 24 23 19 25 17 62 Oil-exporting countries 1,110 1,082 1,346 1,090 1,339 1,201 1,402 1,346 1,125 1,135 63 Other 1,710 1,784 1,778 1,689 1,706 1,682 1,729 1,778 1,761 1,724 64 Other 4,444 5,567 4,169 4,629 4,088 4,403 3,825 4,169 4,599 4,475 65 Australia 3,807 4,464 3,047 3,322 2,927 2,987 2,654 3,047 3,502 3,388 66 Other 637 1,103 1,122 1,307 1,161 1,416 1,171 1,122 1,097 1,087 67 Nonmonetary international and regional organizations 5,918 8,981 9,350 12,914* 11,285* 10,727* 9,915* 9,350 11,086 11,308 68 International16 .. 4,390 6,485 7,434 9,701* 8,204* 7,689 6,764* 7,434 7,851 8,627 69 Latin American regional1 1,048 1,181 1,415 2,309* 2,274* 2,130* 2,248* 1,415 2,327 1,738 70 Other regional18 479 1,315 501 904 807 908 903 501 908 943 11. Beginning December 1992, excludes Bosnia, Croatia, and Slovenia. 15. Comprises Algeria, Gabon, Libya, and Nigeria. 12. Includes the Bank for International Settlements and Eastern European 16. Principally the International Bank for Reconstruction and Development. countries not listed in line 23. Beginning December 1992, includes, in addition, all Excludes "holdings of dollars" of the International Monetary Fund. former parts of the U.S.S.R. (except Russia), and Bosnia, Hercegovina, Croatia, 17. Principally the Inter-American Development Bank. and Slovenia. 18. Asian, African, Middle Eastern, and European regional organizations, 13. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania. except the Bank for International Settlements, which is included in "Other 14. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and Western Europe." United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics • June 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 1993 AArreeaa aanndd ccoouunnttrryy 11999900 11999911 11999922rr Aug. Sept." Oct." Nov." Dec." Jan." Feb." 1 Total, all foreigners 511,543 514,339 495,675 480,163r 486,071 493,689 490,721 495,675 483,873 492,977 2 Foreign countries 506,750 508,056 490,593 475,774' 481,900 491,217 487,840 490,593 480,773 488,869 3 Europe 113,093 114,310 124,085 119,248' 117,349 126,170 122,143 124,085 117,252 124,744 4 Austria 362 327 341 631' 367 414 463 341 366 535 5 Belgium and Luxembourg 5,473 6,158 6,404 6,353' 7,533 6,980 6,423 6,404 6,473 5,919 6 Denmark 497 686 707 906' 1,012 830 1,056 707 705 785 7 Finland 1,047 1,907 1,419 1,081 1,299 817 1,230 1,419 1,275 1,226 8 France 14,468 15,112 14,847 13,091' 15,084 16,111 15,718 14,847 14,012 14,760 9 Germany 3,343 3,371 4,229 4,728' 4,075 5,629 5,328 4,229 5,545 5,370 10 Greece 727 553 718 601' 589 583 598 718 669 668 11 Italy 6,052 8,242 9,048 9,874' 9,485 9,752 9,443 9,048 8,716 8,466 17 Netherlands 1,761 2,546 2,497 2,075 1,980 2,334 3,006 2,497 2,927 3,254 13 Norway 782 669 356 707 639 666 435 356 649 750 14 Portugal 292 344 325 387 383 327 330 325 390 494 15 Spain 2,668 1,881 2,772 2,590 3,304 4,642 3,481 2,772 2,596 4,158 16 Sweden 2,094 2,335 4,929 6,567 5,494 6,678 5,786 4,929 5,340 5,155 17 Switzerland 4,202 4,540 4,722 3,924' 3,102 3,688 3,591 4,722 4,493 4,971 18 Turkey 1,405 1,063 962 1,002 986 1,177 950 962 1,071 1,041 19 United Kingdom 65,151 60,395 63,934 58,878' 56,483 60,209 58,991 63,934 56,202 61,313 20 Yugoslavia2 1,142 825 569 678 674 668 661 569 571 567 7.1 Others in Western Europe3 597 789 1,706 1,351' 1,211 959 1,019 1,706 1,607 1,597 7? Russia 530 1,970 3,148 3,280 3,199 3,190 3,174 3,148 3,154 3,162 23 Other Eastern Europe4 499 597 452 544 450 516 460 452 491 553 24 Canada 16,091 15,113 14,185 15,156' 15,862 16,830 15,834 14,185 16,482 14,972 7.5 Latin America and Caribbean 231,506 246,137 213,780 217,721' 210,580 213,423 217,040 213,780 218,416 210,752 76 Argentina 6,967 5,869 4,882 4,784' 4,553 4,564 4,605 4,882 4,805 4,859 77 Bahamas 76,525 87,138 59,532 62,673r 58,588 64,853 65,139 59,532 62,831 63,863 7.8 Bermuda 4,056 2,270 5,934 6,302 3,567 2,798 6,035 5,934 6,797 2,851 79 Brazil 17,995 11,894 10,737 12,286 11,308 11,558 11,583 10,737 10,926 10,506 30 British West Indies 88,565 107,846 98,738 99,960' 99,580 96,906 96,325 98,738 100,926 94,906 31 Chile 3,271 2,805 3,397 3,203' 3,300 3,323 3,309 3,397 3,690 3,795 37, Colombia 2,587 2,425 2,750 2,322 2,475 2,595 2,698 2,750 2,753 2,819 33 Cuba 0 0 0 0 0 5 0 0 0 0 34 Ecuador 1,387 1,053 884 949 924 936 926 884 853 835 35 Guatemala 191 228 262 186' 235 275 255 262 240 257 36 Jamaica 238 158 167 150 160 147 162 167 170 164 37 Mexico 14,851 16,567 15,049 16,523' 17,234 16,621 16,495 15,049 15,225 15,988 38 Netherlands Antilles 7,998 1,207 1,379 966 1,045 1,080 1,529 1,379 1,736 1,938 39 Panama 1,471 1,560 4,474 2,025' 1,937 1,979 2,080 4,474 2,027 2,304 40 Peru 663 739 730 700" 724 713 723 730 735 708 41 Uruguay 786 599 936 799 921 882 877 936 895 844 47 Venezuela 2,571 2,516 2,525 2,583' 2,653 2,700 2,880 2,525 2,414 2,485 43 Other 1,384 1,263 1,404 1,310 1,376 1,488 1,419 1,404 1,393 1,630 44 138,722 125,262 131,248 116,701" 131,011 127,358 126,143 131,248 121,729 130,913 China 45 People's Republic of China 620 747 906 696 636 978 624 906 774 892 46 Republic of China (Taiwan) 1,952 2,087 2,046 1,983 2,054 1,848 1,653 2,046 1,683 1,585 47 Hong Kong 10,648 9,617 9,673 7,986" 10,057 9,095 9,287 9,673 9,145 10,283 48 India 655 441 529 528 499 500 539 529 532 550 49 Indonesia 933 952 1,189 1,108 1,089 1,112 1,135 1,189 1,323 1,291 50 Israel 774 860 820 920 800 826 937 820 877 809 51 Japan 90,699 84,807 78,609 71,689" 83,527 80,253 77,676 78,609 74,593 79,650 57 Korea (South) 5,766 6,048 6,170 6,201 6,247 6,113 6,288 6,170 6,062 6,753 53 Philippines 1,247 1,910 2,145 1,776" 2,144 2,181 2,034 2,145 1,871 1,842 54 Thailand 1,573 1,713 1,867 1,691 1,795 1,764 1,873 1,867 1,7% 1,737 55 Middle Eastern oil-exporting countries 10,749 8,284 18,559 14,783 14,613 15,488 16,858 18,559 17,083 17,775 56 Other 13,106 7,796 8,735 7,340 7,550 7,200 7,239 8,735 5,990 7,746 57 Africa 5,445 4,928 4,289 4,455 4,333 4,303 4,233 4,289 4,262 4,143 58 Egypt 380 294 194 243 256 229 214 194 171 291 59 Morocco 513 575 441 483 467 452 443 441 421 403 60 South Africa 1,525 1,235 1,041 1,066 1,055 1,036 1,063 1,041 1,069 1,030 61 Zaire 16 4 4 4 4 4 4 4 3 3 62 Oil-exporting countries6 1,486 1,298 1,004 1,130 1,067 1,056 1,029 1,004 1,067 1,104 63 Other 1,525 1,522 1,605 1,529 1,484 1,526 1,480 1,605 1,531 1,312 64 Other 1,892 2,306 3,006 2,493 2,765 3,133 2,447 3,006 2,632 3,345 65 Australia 1,413 1,665 2,263 1,463 1,765 1,951 1,601 2,263 1,8% 2,552 66 Other 479 641 743 1,030 1,000 1,182 846 743 736 793 67 Nonmonetary international and regional organizations7 4,793 6,283 55,,008822 4,389 4,171 2,472 2,881 5,082 3,100 4,108 1. Reporting banks include all types of depository institutions, as well as some 4. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania. brokers and dealers. 5. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and 2. Beginning December 1992, excludes Bosnia, Croatia, and Slovenia. United Arab Emirates (Trucial States). 3. Includes the Bank for International Settlements and Eastern European 6. Comprises Algeria, Gabon, Libya, and Nigeria. countries not listed in line 23. Beginning December 1992, includes, in addition, all 7. Excludes the Bank for International Settlements, which is included in former parts of the U.S.S.R. (except Russia), and Bosnia, Hercegovina, Croatia, "Other Western Europe." and Slovenia. 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 1992r 1993 CCllaaiimm 11999900 11999911 11999922rr Aug. Sept. Oct. Nov. Dec. Jan/ Feb.P 11 TToottaall 579,044 579,683 555,659 548.286 555,659 22 BBaannkkss'' ccllaaiimmss 511,543 514,339 495,675 480,163 486,071 493,689 490,721 495,675 483,873 492,977 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 41,900 37,126 31,353 32,370 31,504 32,056 30,955 31,353 33,148 30,454 44 OOwwnn ffoorreeiiggnn ooffffiicceess 304,315 318,800 299,677 288,020 298.287 298,056 290,974 299,677 290,862 303,726 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 117,272 116,602 109,976 106,377 105,768 112,224 112,512 109,976 101,989 102,434 66 DDeeppoossiittss 65,253 69,018 61,172 56,290 54,315 60,856 61,999 61,172 53,629 51,020 77 OOtthheerr 52,019 47,584 48,804 50,087 51,453 51,368 50,513 48,804 48,360 51,414 88 AAllll ootthheerr ffoorreeiiggnneerrss 48,056 41,811 54,669 53,396 50,512 51,353 56,280 54,669 57,874 56,363 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss33...... 67,501 65,344 59,984 62,215 59,984 1100 DDeeppoossiittss 14,375 15,280 15,452 15,348 15,452 1111 NNeeggoottiiaabbllee aanndd rreeaaddiillyy ttrraannssffeerraabbllee iinnssttrruummeennttss44 41,333 37,125 31,400 33,687 31,400 1122 OOuuttssttaannddiinngg ccoolllleeccttiioonnss aanndd ootthheerr ccllaaiimmss 11,792 12,939 13,132 13,180 13,132 MMEEMMOO 1133 CCuussttoommeerr lliiaabbiilliittyy oonn aacccceeppttaanncceess 13,628 8,974 8,682 8,540 8,682 1144 DDoollllaarr ddeeppoossiittss iinn bbaannkkss aabbrrooaadd,, rreeppoorrtteedd bbyy nnoonnbbaannkkiinngg bbuussiinneessss eenntteerrpprriisseess iinn tthhee UUnniitteedd SSttaatteess ........ 44,638 40,146r 33,562 33,932 34,692 34,522 33,708 33,562 36,087 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 1992 MMaattuurriittyy,, bbyy bboorrrroowweerr aanndd aarreeaa 11998899 11999900 11999911 Mar/ Juner Sept/ Dec.p 1 Total 238,123 206,903 195,302 194,450 196,768 187,398 195,682 By borrower 2 Maturity of one year or less 178,346 165,985 162,573 161.566 162,433 155,254 164,131 3 Foreign public borrowers 23,916 19,305 21,050 20,253 20,528 17,863 17,867 4 All other foreigners 154,430 146,680 141,523 141,313 141,905 137,391 146,264 5 Maturity of more than one year 59,776 40,918 32,729 32,884 34,335 32,144 31,551 6 Foreign public borrowers 36,014 22,269 15,859 16,182 15,145 13,295 13,206 7 All other foreigners 23,762 18,649 16,870 16,702 19,190 18,849 18,345 By area Maturity of one year or less 8 Europe 53,913 49,184 51,835 52,911 54,997 55,986 53,952 9 Canada 5,910 5,450 6,444 6,958 7,986 5,949 6,118 10 Latin America and Caribbean 53,003 49,782 43,597 48,536 49,094 45,241 50,325 11 Asia 57,755 53,258 51,059 43,645 41,409 40,824 45,862 V Africa 3,225 3,040 2,549 2,470 2,127 2,183 1,810 13 All other3 4,541 5,272 7,089 7,046 6,820 5,071 6,064 Maturity of more than one year 14 Europe 4,121 3,859 3,878 4,315 6,752 6,625 5,360 15 Canada 2,353 3,290 3,595 3,289 3,158 3,227 3,290 16 Latin America and Caribbean 45,816 25,774 18,277 18,120 16,827 15,092 15,149 17 Asia 4,172 5,165 4,459 4,714 4,979 4,815 4,977 18 Africa 2,630 2,374 2,335 2,207 2,356 2,107 2,364 19 All other3 684 456 185 239 263 278 411 1. Reporting banks include all kinds of depository institutions besides commer- 2. Maturity is time remaining to maturity, rial banks, as well as some brokers and dealers. 3. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • June 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 Area or country lyoo i9oy Dec. Mar. June Sept. Dec. Mar. June Sept. Dec." 1 Total 346.3r 338.8 317.8 325.3 320.4 335.7 341.5 347.8r 357.5r 344.3r 345.1 2 G-10 countries and Switzerland 152.7 152.9 132.1 129.9 129.8 134.0 137.2 130.6r 135.7r 137.2r 133.2 4 3 B Fr e a lg n i c u e m and Luxembourg 1 9 0 . . 0 5 1 6 1 . . 3 7 1 5 0 . . 9 4 6 9. . 7 2 1 6 0 . . 1 5 1 5 1 . . 8 1 1 6 1 . . 0 0 1 5 0 . . 3 0 162.2 .0F 1 6 5 . . 2 5 r 1 5 5 . . 6 3 5 Germany 10.3 10.5 10.6 8.8 8.3 9.7 8.3 8.4 8.8r 10.9 9.3 6 Italy 6.8 7.4 5.0 4.0 3.6 4.5 5.6 5.4 8.0 6.4 6.5 7 Netherlands 2.7 3.1 3.0 3.3 3.3 3.0 4.7 4.3 3.3 3.7 2.8 8 Sweden 1.8 2.0 2.2 2.0 2.5 2.1 1.9 1.9 2.2 2.3 9 Switzerland 5.4 7.1 4.4 3.7 3.3 3.9 3.4 3.2 4.6 5.2r 4.7 10 United Kingdom 66.2 67.2 60.8 62.3 59.5 64.9 68.5 64.8 65.8r 62.2r 61.3 11 Canada 5.0 5.4 5.9 6.8 8.2 5.8 5.8 6.6r 6.7 6.7 6.5 12 Japan 34.9 32.2 23.9 23.2 24.6 23.2 22.2 20.7 18.3 18.3 18.8 13 Other industrialized countries 21.3r 21. <f 22.9r 23.5r 21.3r 22. lr 22.8r 21.5r 25.5 25. r 24.1 14 Austria 1.5 1.5 1.4 1.4 1.1 1.0 .6 .8 .8 .8r 1.2 15 Denmark 1.1 1.1 1.1 .9 1.2 .9 .9 .8 1.3 1.5 .9 16 Finland 1.1 1.0 .7 1.0 .8 .6 .7 .8 .8 1.0 .7 17 Greece 1.8 2.5 2.7 2.5 2.4 2.3 2.6 2.3 2.8 2.9r 3.0 18 Norway 1.8 1.4 1.6 1.5 1.5 1.4 1.4 1.5 1.7 1.6 1.2 19 Portugal .4 .4 .6 .6 .6 .5 .6 .5 .5 .5 .4 20 Spain 6.2 7.1 8.3 9.0 7.1 8.3 8.3 7.7 10.1 9.8 9.0 21 Turkey 1.5 1.2 1.7 1.7 1.9 1.6 1.4 1.2 1.5 1.5 1.3 22 Other Western Europe 1.7r 1.0r 1.2r 1.2r i.r 1.3r 1.8r 1.5r 2.0r 1.5r 1.7 23 South Africa 2.4 2.0 1.8 1.8 1.8 1.6 1.9 1.8 1.7 1.7 1.7 24 Australia 1.8 1.6 1.8 1.9 2.0 2.4 2.7 2.3 2.3 2.3 2.9 25 OPEC2 16.6 17.1 12.8 17.1 14.0 15.6 14.6 15.8 16.2 15.9 16.1 26 Ecuador 1.7 1.3 1.0 .9 .9 .8 .7 .7 .7 .7 .6 27 Venezuela 7.9 7.0 5.0 5.1 5.3 5.6 5.4 5.4 5.3 5.4 5.2 28 Indonesia 1.7 2.0 2.7 2.8 2.6 2.8 2.8 3.0 3.0 3.0 3.0 29 Middle East countries 3.4 5.0 2.5 6.6 3.7 5.0 4.2 5.3 5.9 5.4 6.2 30 African countries 1.9 1.7 1.7 1.6 1.5 1.5 1.5 1.4 1.4 1.4 1.1 31 Non-OPEC developing countries 85.3 77.5 65.4 66.4 65.0 65.0 64.3 70.6 68.6r 73.4r 72.6 Latin America 32 Argentina 9.0 6.3 5.0 4.7 4.6 4.5 4.8 5.0 5.1 6.2 6.6 33 Brazil 22.4 19.0 14.4 13.9 11.6 10.5 9.6 10.8 10.6 10.8 10.8 34 Chile 5.6 4.6 3.5 3.6 3.6 3.7 3.6 3.9 4.0 4.2 4.4 35 Colombia 2.1 1.8 1.8 1.7 1.6 1.6 1.7 1.6 1.6 1.7 1.8 36 Mexico 18.8 17.7 13.0 13.7 14.3 16.2 15.5 18.2 16.3r 17.1 16.0 37 Peru .8 .6 .5 .5 .5 .4 .4 .4 .4 ,4r .5 38 Other 2.6 2.8 2.3 2.2 2.0 1.9 2.1 2.2 2.2 2.5 2.6 Asia China 39 Peoples Republic of China .3 .3 .2 .4 .6 .4 .3 .3 .3 .3 .7 40 Republic of China (Taiwan) 3.7 4.5 3.5 3.6 4.1 4.1 4.1 4.8 4.6 5.0 5.2 41 India 2.1 3.1 3.3 3.5 3.0 2.8 3.0 3.6 3.8 3.6 3.2 42 Israel 1.2 .7 .5 .5 .5 .5 .5 .4 .4 .4 .4 43 Korea (South) 6.1 5.9 6.2 6.8 6.9 6.5 6.8 6.9 6.9 7.4 6.6 44 Malaysia 1.6 1.7 1.9 2.0 2.1 2.3 2.3 2.5 2.7 3.0 3.0 45 Philippines 4.5 4.1 3.8 3.7 3.7 3.6 3.7 3.6 3.r 3.6r 3.6 46 Thailand 1.1 1.3 1.5 1.6 1.7 1.9 1.7 1.7 1.9 2.2 2.2 47 Other Asia3 .9 1.0 1.7 2.1 2.3 2.3 2.4 2.7 s.o1 3.3 3.1 Africa 48 Egypt .4 .4 .4 .4 .4 .4 .4 .3 .5 .3 .2 49 Morocco .9 .9 .8 .8 .7 .7 .7 .7 .7 .6 .6 50 Zaire , .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 51 Other Africa3 1.1 1.0 1.0 .8 .8 .8 .7 .7 .6 .9 1.0 52 Eastern Europe 3.6 3.5 2.3 2.1 2.1 1.8 2.4 2.9 3.0 3.1 3.1 53 Russia .7 .7 .2 .3 .4 .4 .9 1.4 1.7 1.8 1.9 54 Yugoslavia 1.8 1.6 1.2 1.0 1.0 .8 .9 .8 .7 .7 .6 55 Other 1.1 1.3 .9 .8 .7 .7 .7 .6 .6 .7 .6 56 Offshore banking centers 44.2 36.6 42.5 50.0 48.3 52.7 52.0 58.5 59.4r 52.3r 55.1 57 Bahamas 11.0 5.5 2.8 8.3 6.8 6.7 11.9 14. r 12.3r 8.2r 5.7 58 Bermuda .9 1.7 4.4 4.4 4.2 7.1 2.3 3.9 5.1 3.8 6.2 59 Cayman Islands and other British West Indies 12.9 9.0 11.5 14.1 14.9 13.8 15.8 17.4 18. lr 15..7r r 19.9 6 6 6 1 2 0 L P N a e e n b th a a e m n r o a l n a nds Antilles 2 1 . . 5 0 j 9 2 1 . . 3 4 . j 7 i 7 1 n . . 9 4j 1 1. . 5 1 J 1 1. . 3 4 | 3 1 . . 9 3 1 1. . 3 2 1 1. . 3 0 i..8r 1.8r 1 1 . . 1 7 63 Hong Kong 9^6 1L6 12.4 12! 1 12^2 12.'r 14.V 15^2 13^8 64 Singapore 6.1 7.0 6.6 8.9 7.2 7.7 7.1 8.5 6.4 6.8r 6.5 65 Other .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 66 Miscellaneous and unallocated6 22.6 30.3 39.8 36.4 39.9 44.6 48.2 48.0 48.8r 36.91 40.7 1. The banking offices covered by these data are the U.S. offices and foreign $150 million equivalent in total assets, the threshold now applicable to all branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks. reporting branches. Offices not covered include (1) U.S. agencies and branches of foreign banks, and 2. Organization of Petroleum Exporting Countries, shown individually; other (2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, adjusted to exclude the claims on foreign branches held by a U.S. office or another Saudi Arabia, and United Arab Emirates); and Bahrain and Oman (not formally foreign branch of the same banking institution. The data in this table combine members of OPEC). foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims 3. Excludes Liberia. of U.S. offices in table 3.18 (excluding those held by agencies and branches of 4. Includes Canal Zone beginning December 1979. foreign banks and those constituting claims on own foreign branches). 5. Foreign branch claims only. Since June 1984, reported claims held by foreign branches have been reduced 6. Includes New Zealand, Liberia, and international and regional by an increase in the reporting threshold for "shell" branches from $50 million to organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A63 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States' Millions of dollars, end of period 1991 1992 Type and area or country 11998899 11999900rr 11999911 Sept. Dec. Mar. June Sept. Dec.p 1 Total 38,764 46,043 43,156 43,218r 43,156r 44,098* 44,176* 45,166* 42,422 2 Payable in dollars 33,973 40,786 37,764 38,482r 37,764* 38,640* 37,481* 36,574* 35,422 3 Payable in foreign currencies 4,791 5,257 5,392 4,736 5,392 5,458* 6,695 8,592* 7,000 By type 4 Financial liabilities 17,879 21,066 21,893 21,652r 21,893* 22,255* 21,988* 23,406* 21,547 5 Payable in dollars 14,035 16,979 17,781 17,947r 17,781* 18,027* 16,744* 16,468* 15,676 6 Payable in foreign currencies 3,844 4,087 4,112 3,705 4,112 4,228 5,244 6,938* 5,871 7 Commercial liabilities 20,885 24,977 21,263 21,566 21,263 21,843* 22,188 21,760 20,875 8 Trade payables 8,070 10,683 8,310 8,313 8,310 8,926* 9,516 9,409* 8,838 9 Advance receipts and other liabilities ... 12,815 14,294 12,953 13,253 12,953 12,917 12,672 12,351* 12,037 10 Payable in dollars 19,938 23,807 19,983 20,535 19,983 20,613* 20,737 20,106 19,746 11 Payable in foreign currencies 947 1,170 1,280 1,031 1,280 1,230* 1,451 1,654 1,129 By area or country Financial liabilities 12 Europe 11,660 10,978 11,905 12,311r 11,905* 12,449* 13,030* 14,070* 12,152 13 Belgium and Luxembourg 340 394 217 397 217 174 194 256 407 14 France 258 975 2,106 2,164 2,106 1,997 2,324 2,785* 1,608 15 Germany 464 621 682 682 682 666 836 941* 740 16 Netherlands 941 1,081 1,056 1,050 1,056 1,025 979 980* 606 17 Switzerland 541 545 408 497 408 355 490 627* 585 18 United Kingdom 8,818 6,357 6,429 6,589* 6,429* 7,338* 7,344* 7,680* 7,516 19 Canada 610 229 267 305 267 283 337 320 498 20 Latin America and Caribbean 1,357 4,153 4,325 3,883 4,325* 4,062* 3,323* 3,345* 3,480 21 Bahamas 157 371 537 314 537 396 343 220* 249 22 Bermuda 17 0 114 0 114 114 114 115 214 23 Brazil 0 0 6 6 6 8 10 18 19 24 British West Indies 724 3,160 3,065 2,961 3,065* 2,930* 2,182* 2,291* 2,307 25 Mexico 6 5 7 6 7 7 8 12 11 26 Venezuela 0 4 4 4 4 4 4 5 6 27 Asia 4,151 5,295 5,338 5,149r 5,338* 5,366* 5,209* 5,581* 5,384 28 Japan 3,299 4,065 4,102 4,000* 4,102* 4,107* 4,116* 4,548* 4,353 29 Middle East oil-exporting countries2 .. 2 5 13 19 13 13 10 17 19 30 Africa 2 2 6 3 6 7 0 5 6 0 0 4 2 4 6 0 0 0 31 Oil-exporting countries 100 409 52 1 52 88 89 85 27 32 All other4 Commercial liabilities 9,071 10,310 7,808 8,084 7,808 7,501* 7,144 6,714* 6,624 33 Europe 175 275 248 225 248 256 240 173 285 34 Belgium and Luxembourg 877 1,218 830 992 830 678* 659 688* 660 35 France 1,392 1,270 944 911 944 880* 702 744 592 36 Germany 710 844 709 751 709 574 605 601 555 37 Netherlands 693 775 488 492 488 482 400 369 398 38 Switzerland 2,620 2,792 2,310 2,217 2,310 2,445* 2,404 2,262* 2,225 39 United Kingdom 40 Canada 1,124 1,261 990 1,011 990 l,095r 1,077 1,085 987 41 Latin America and Caribbean 1,224 1,672 1,352 1,512 1,352 1,701 1,803 1,518 1,520 42 Bahamas 41 12 3 14 3 13 8 3 6 43 Bermuda 308 538 310 450 310 493 409 338 292 44 Brazil 100 145 219 211 219 230 212 115 197 45 British West Indies 27 30 107 46 107 108 73 85 55 46 Mexico 323 475 304 291 304 375 475 322 444 47 Venezuela 164 130 94 102 94 168 279 147 127 48 Asia 7,550 9,483 9,330 8,855 9,330 9,890* 10,439 11,006* 10,643 49 Japan 2,914 3,651 3,720 3,363 3,720 3,549* 3,537 3,909* 3,990 50 Middle Eastern oil-exporting countries' 1,632 2,016 1,498 1,780 1,498 1,591 1,778 1,813 1,946 51 Africa 886 844 713 836 713 644 775 675 535 52 Oil-exporting countries3 339 422 327 357 327 253 389 337 291 53 Other4 1,030 1,406 1,070 1,268 1,070 1,012 950 762 566 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 • June 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 11998899 11999900 11999911 Sept. Dec. Mar. June Sept. Dec.p 1 Total 33,173 35,348 42,667 38,315 42,667r 42,199" 41,869" 38,659" 37,728 2 Payable in dollars 30,773 32,760 40,098 35,952 40,098r 39,558" 38,899" 35,738" 35,164 3 Payable in foreign currencies 2,400 2,589 2,569 2,363 2,569" 2,641" 2,970" 2,921 2,564 By type 4 Financial claims 19,297 19,874 25,463 22,536 25,463 25,328" 24,612" 21,367 20,482 5 Deposits 12,353 13,577 17,218 16,188 17,218 16,964 15,116 12,547 12,534 6 Payable in dollars 11,364 12,552 16,343 15,182 16,343 15,803 13,829 11,489 11,788 7 Payable in foreign currencies 989 1,025 875 1,006 875 1,161 1,287 1,058 746 8 Other financial claims 6,944 6,297 8,245 6,348 8,245 8,364" 9,496" 8,820 7,948 9 Payable in dollars 6,190 5,280 7,365 5,611 7,365 7,617" 8,771" 7,788 7,184 10 Payable in foreign currencies 754 1,017 880 737 880 747 725 1,032 764 11 Commercial claims 13,876 15,475 17,204 15,779 17,204r 16,871" 17,257" 17,292" 17,246 12 Trade receivables 12,253 13,657 14,479 13,429 14,479" 14,266" 14,756" 14,552" 14,888 13 Advance payments and other claims 1,624 1,817 2,725 2,350 2,725 2,605 2,501 2,740 2,358 14 Payable in dollars 13,219 14,927 16,390 15,159 16,390" 16,138" 16,299" 16,461" 16,192 15 Payable in foreign currencies 657 548 814 620 814" 733" 958" 831 1,054 By area or country Financial claims 16 Europe 8,463 9,645 13,546 13,129 13,546 14,205" 13,200" 11,249 99,,114477 17 Belgium and Luxembourg 28 76 13 76 13 12 25 16 88 18 France 153 371 312 255 312 277 786 809 771 19 Germany 152 367 342 434 342 290 381 321 401 20 Netherlands 238 265 385 420 385 727 732 766 536 21 Switzerland 153 357 591 580 591 682 779 602 506 22 United Kingdom 7,496 7,971 11,251 10,997 11,251 11,631 8,768" 7,727 5,749 23 Canada 1,904 2,934 2,679 2,163 2,679 2,750" 2,529" 2,256 1,695 24 Latin America and Caribbean 8,020 6,201 7,932 6,289 7,932 7,070 7,260 6,523 8,278 25 Bahamas 1,890 1,090 758 652 758 415 523 1,099 625 26 Bermuda 7 3 8 19 8 12 12 65 40 27 Brazil 224 68 192 137 192 191 181 135 234 28 British West Indies 5,486 4,635 6,384 5,106 6,384 5,912 6,018 4,792 6,749 29 Mexico 94 177 321 176 321 318 343 222 270 30 Venezuela 20 25 40 32 40 34 32 26 29 31 Asia 590 860 957 614 957 961" 1,275" 995 836 32 Japan 213 523 385 277 385 380 712 481 684 33 Middle East oil-exporting countries 8 8 5 3 5 3 4 4 3 34 Africa 140 37 57 61 57 60 57 66 74 35 Oil-exporting countries 12 0 1 1 1 0 0 1 9 36 All other4 180 195 292 280 292 282" 291" 278 452 Commercial claims 37 Europe 6,209 7,044 7,950 6,884 7,950 7,894 8,138" 7,792" 7,526 38 Belgium and Luxembourg 242 212 192 190 192 181 255 170 183 39 France 964 1,240 1,544 1,330 1,544 1,562 1,563 1,741" 1,394 40 Germany 696 807. 943 858 943 936 908 885 883 41 Netherlands 479 555 643 641 643 646 666 588 541 42 Switzerland 313 301 295 258 295 328 399 294 294 43 United Kingdom 1,575 1,775 2,088 1,807 2,088 2,086 2,173 1,977 1,776 44 Canada 1,091 1,074 1,174 1,232 1,174 1,176 1,131 1,172 1,243 45 Latin America and Caribbean 2,184 2,375 2,591 2,494 2,591 2,572 2,672 3,141 2,844 46 Bahamas 58 14 11 8 11 11 9 7 18 47 Bermuda 323 246 263 255 263 272 291 245 237 48 Brazil 297 326 418 385 418 364 438 395 336 49 British West Indies 36 40 41 37 41 45 32 43 25 50 Mexico 508 661 829 741 829 892 847 968 822 51 Venezuela 147 192 202 1% 202 206 251 302 316 52 Asia 3,570 4,127 4,573 4,282 4,573" 4,354" 4,463" 4,308" 4,648 53 Japan 1,199 1,460 1,878 1,808 1,878" 1,782" 1,786 1,793" 1,848 54 Middle Eastern oil-exporting countries 518 460 621 4% 621 635 609 512 653 55 Africa 429 488 418 431 418 418 422 430 536 56 Oil-exporting countries3 108 67 95 80 95 75 73 66 77 57 Other4 393 367 498 456 498" 457" 431" 449 449 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 1993 1992 1993 Transaction and area or country 1991 1992r Jan.- Aug. Sept. Oct/ Nov/ Dec/ Jan/ Feb." Feb. U.S. corporate securities STOCKS 1 Foreign purchases 211,207 221,350 48,208 13,174 13,884 18,820 17,885 22,725 19,170 29,038 2 Foreign sales 200,116 226,490 45,333 14,841 17,034 18,170 16,598 20,382 19,353 25,980 3 Net purchases or sales (-) 11,091 -5,140 2,875 -1,667 -3,150 650 1,287 2,343 -183 3,058 4 Foreign countries 10,522 -5,173 2,790 -1,622 -3,059 653 1,284 2,319 -178 2,968 5 Europe 53 -4,934 2,342 -1,089 -1,683 75 371 1,505 52 2,290 6 France 9 -1,331 198 -46 -234 -92 -50 -154 -25 223 7 Germany -63 -64 188 -26 -112 -52 47 162 91 97 8 Netherlands -227 -280 53 -54 -107 -24 -4 190 64 -11 9 Switzerland -131 143 706 -150 -189 -124 -40 221 205 501 10 United Kingdom -352 -3,294 804 -652 -869 362 361 705 -350 1,154 11 Canada 3,845 1,405 -284 -59 -278 -227 43 176 -341 57 12 Latin America and Caribbean 2,177 2,209 336 -24 -90 235 649 422 305 31 13 Middle East1 -134 -88 -157 -14 136 -57 -219 70 -92 -65 14 Other Asia 4,255 -3,944 470 -442 -1,064 767 373 122 -123 593 15 Japan 1,179 -3,598 -5% -301 -97 184 220 215 28 -624 16 Africa 153 10 31 -1 14 -21 -18 -7 4 27 17 Other countries 174 169 52 7 -94 -119 85 31 17 35 18 Nonmonetary international and regional organizations 568 33 85 -45 -91 -3 3 24 -5 9900 BONDS2 19 Foreign purchases 153,096 214,801 39,381 19,785 17,160 19,315 18,082 19,264 17,417 21,964 20 Foreign sales 125,637 175,310 34,146 16,620 14,452 15,224 16,317 15,513 15,439 18,707 21 Net purchases or sales (-) 27,459 39,491 5,235 3,165 2,708 4,091 1,765 3,751 1,978 3,257 22 Foreign countries 27,590 38,375 5,457 3,150 2,573 4,045 1,600 3,206 2,074 3,383 23 Europe 13,112 18,314 3,664 1,516 1,818 1,993 -492 1,996 1,302 2,362 24 France 847 1,221 412 -5 155 -4 -7 217 101 311 25 Germany 1,577 2,503 143 -13 387 -34 -113 857 91 52 26 Netherlands 482 531 -252 22 58 133 144 48 -119 -133 27 Switzerland 656 -513 69 -94 -51 -23 -260 105 122 -53 28 United Kingdom 8,931 13,229 3,067 1,447 1,319 1,568 -312 962 349 2,718 29 Canada 1,623 236 -292 -100 48 198 281 -38 -437 145 30 Latin America and Caribbean 2,672 8,833 901 878 548 842 540 513 419 482 31 Middle East1 1,787 3,166 548 284 -5 273 515 360 300 248 32 Other Asia 8,459 7,545 454 593 171 790 692 119 305 149 33 Japan 5,767 -450 251 -1,229 -590 467 266 9 190 61 34 Africa 52 354 195 1 -7 -50 -4 302 168 27 35 Other countries -116 -73 -13 -22 0 -1 68 -46 17 -30 36 Nonmonetary international and regional organizations -131 1,116 -222 15 135 46 165 545 -96 --112266 Foreign securities 37 Stocks, net purchases or sales (-)' —31,967 -32,186 -3,873 -2,950* -2,892* -4,260 -3,636 -4,368 -2,328 -1,545 38 Foreign purchases 120,598 149,987 27,764 9,779* 13,632* 12,477 11,672 12,781 12,722 15,042 39 Foreign sales3 152,565 182,173 31,637 12,729* 16,524* 16,737 15,308 17,149 15,050 16,587 40 Bonds, net purchases or sales (-) -14,828 -18,470 -14,888 276* -1,420* -2,205 -791 -2,874 -5,099 -9,789 41 Foreign purchases 330,311 485,659 93,891 45,943* 46,140* 49,670 52,066 39,607 38,411 55,480 42 Foreign sales 345,139 504,129 108,779 45,667* 47,560* 51,875 52,857 42,481 43,510 65,269 43 Net purchases or sales (—), of stocks and bonds -46,795 -50,656 -18,761 -2,674* -4,312* -6,465 -4,427 -7,242 -7,427 -11,334 44 Foreign countries -46,711 -53,992 -17,892 -2,761* -4,333* -6,492 -4,500 -7,196 -6,420 -11,472 45 Europe -34,452 -38,109 -13,413 -1,234* -3,196* -6,851 -5,001 -4,516 -6,468 -6,945 46 Canada -7,004 -6,653 -5,146 207 -222* -1,008 571 -1,167 -161 -4,985 47 Latin America and Caribbean 759 -1,830 190 -430 308 1,091 -1,671 512 195 -5 48 Asia -7,350 -6,583 186 -1,376 -1,667 681 1,567 -1,670 -381 567 49 Africa -9 -57 -4 11 -14 -2 42 -11 -7 3 50 Other countries 1,345 -760 295 61 458* -403 -8 -344 402 -107 51 Nonmonetary international and regional organizations -84 3,336 -869 87 21 27 73 -46 -1,007 113388 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 • June 1993 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1993 1992 1993 Country or area 1991 1992 J F a e n b . . - Aug. Sept. Oct. Nov. Dec.r Jan.r Feb." Transactions, net purchases or sales (-) during period1 1 Estimated total 19,865 39,319" -820 6,458 -5,995 3,546" 17,648" 8 454 -1,274 2 Foreign countries 19,687 37,966R -2,296 6,785 -6,204 4,351" 17,661" -194 -129 -2,167 3 Europe 8,663 19,647R -968 3,450 -4,655 4,671" 7,284" 3,163 -585 -383 4 Belgium and Luxembourg 523 1,985" -14 80 -25 232 370 -28 -59 45 5 Germany -4,725 2,076 -935 255 900 -8 -1,584 898 697 -1,632 6 Netherlands -3,735 -2,923 -1,032 367 -239 -40 1,827 -804 -1,238 206 7 Sweden -663 -804 204 -1,289 -843 202 668 -344 -54 258 8 Switzerland 1,007 481 -654 -87 292 769 1,334 213 -199 -455 9 United Kingdom 6,218 24,184" 2,207 3,681 16 4,068" 7,209" 2,833 2,025 182 10 Other Western Europe 10,024 -6,002" -784 428 -4,761 -551 -2,758 395 -1,759 975 11 Eastern Europe 13 650" 40 15 5 -1 218 0 2 38 12 Canada -3,019 562" 3,384 900 -4,281 458 -1,087 -99 3,302 82 13 Latin America and Caribbean 10,285 -3,223 -1,050 -1,563 -1,479 -1,915 7,270 -4,519 -1,495 445 14 Venezuela 10 539 4 60 31 155 27 11 -175 179 15 Other Latin America and Caribbean 4,179 -1,957 -4,965 -758 -2,537 -3,233 2,385 415 -3,309 -1,656 16 Netherlands Antilles 6,097 -1,805 3,911 -865 1,027 1,163 4,858 -4,945 1,989 1,922 17 Asia 3,367 23,526" -2,168 4,112 4,004 1,416 4,000 1,188 -1,136 -1,032 18 Japan -4,081 9,817" 61 1,887 2,448 -339 3,383 2,201 -743 804 19 Africa 689 1,103 -172 56 59 -37 119 0 -33 -139 20 Other -298 -3,649 -1,322 -170 148 -242 75 73 -182 -1,140 21 Nonmonetary international and regional organizations 178 1,353 1,476 -327 209 -805 -13 202 583 893 22 International -358 1,018 809 -133 -31 -903 -38 76 228 581 23 Latin American regional -72 533 505 -75 201 219 -31 97 270 235 MEMO 24 Foreign countries 19,687 37,966" -2,296 6,785 -6,204 4,351" 17,661" -194 -129 -2,167 25 Official institutions 1,190 6,876" -7,329 697 -4,483 2,951 -603 -719 -2,965 -4,364 26 Other foreign 18,496 31,090" 5,033 6,088 -1,721 1,400" 18,264" 525 2,836 2,197 Oil-exporting countries 27 Middle East2 -6,822 4,323 -2,093 1,093 750 -271 407 511 -238 -1,855 28 Africa3 239 11 8 0 4 0 0 0 8 0 1. Official and private transactions in marketable U.S. Treasury securities 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and having an original maturity of more than one year. Data are based on monthly United Arab Emirates (Trucial States). transactions reports. Excludes nonmarketable U.S. Treasury bonds and notes 3. Comprises Algeria, Gabon, Libya, and Nigeria. held by official institutions of foreign countries. 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 Apr. 30, 1993 Rate on Apr. 30, 1993 Rate on Apr. 30, 1993 Country Country Country Percent e M ffe o c n t t i h v e Percent e M ffe o c n t t i h v e Percent e M ffe o c n t t i h v e Austria.. 6.75 Apr. 1993 Germany... 7.25 Apr. 1993 Norway 7.75 Apr. 1993 Belgium . 7.0 Mar. 1993 Italy 11.0 Apr. 1993 Switzerland 5.0 Mar. 1993 Canada.. 5.60 Apr. 1993 Japan 2.5 July 1992 United Kingdom 12.0 Sept. 1992 Denmark 10.5 Mar. 1993 Netherlands 6.75 Apr. 1993 France2.. 8.25 Apr. 1993 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 1993 TTyyppee oorr ccoouunnttrryy 11999900 11999911 11999922 Oct. Nov. Dec. Jan. Feb. Mar. Apr. 8.16 5.86 3.70 3.30 3.67 3.50 3.22 3.12 3.11 3.10 14.73 11.47 9.56 8.23 7.16 7.11 6.88 6.10 5.91 5.90 13.00 9.07 6.76 7.57 7.63 7.93 7.03 6.38 5.59 5.43 8.41 9.15 9.42 8.85 8.84 8.93 8.50 8.29 7.85 7.81 8.71 8.01 7.67 6.28 6.44 6.13 5.52 5.34 5.05 4.97 8.57 9.19 9.25 8.63 8.66 8.55 8.00 7.98 7.47 7.43 10.20 9.49 10.14 10.82 9.58 10.75 11.69 11.70 10.89 8.73 8 Italy 12.11 12.04 13.91 15.52 14.38 13.60 12.56 11.43 11.26 11.41 9.70 9.30 9.31 8.70 8.64 8.65 8.19 8.75 8.27 7.94 7.75 7.33 4.39 3.85 3.77 3.76 3.70 3.27 3.26 3.22 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 • June 1993 3.28 FOREIGN EXCHANGE RATES1 Currency units per dollar except as noted 1992 1993 CCoouunnttrryy//ccuurrrreennccyy uunniitt 11999900 11999911 11999922 Nov. Dec. Jan. Feb. Mar. Apr. 1 Australia/dollar2 78.069 77.872 73.521 68.984 68.974 67.297 68.294 70.775 71.155 7 Austria/schilling 11.331 11.686 10.992 11.168 11.130 11.368 11.556 11.586 11.234 3 Belgium/franc 33.424 34.195 32.148 32.661 32.545 33.239 33.841 33.919 32.857 4 Canada/dollar 1.1668 1.1460 1.2085 1.2674 1.2725 1.2779 1.2602 1.2471 1.2621 5 China, P.R./yuan 4.7921 5.3337 5.5206 5.6134 5.8106 5.7796 5.7874 5.7455 5.7202 6 Denmark/krone 6.1899 6.4038 6.0372 6.1166 6.1206 6.2319 6.3019 6.3242 6.1339 7 Finland/markka 3.8300 4.0521 4.4865 5.0615 5.1444 5.4242 5.8534 5.9767 5.6190 8 France/franc 5.4467 5.6468 5.2935 5.3706 5.3974 5.4751 5.5594 5.5944 5.3984 9 Germany/deutsche mark 1.6166 1.6610 1.5618 1.5875 1.5822 1.6144 1.6414 1.6466 1.5964 10 Greece/drachma 158.59 182.63 190.81 206.48 209.48 215.97 220.60 223.57 217.90 11 Hong Kong/dollar 7.7899 7.7712 7.7402 7.7348 7.7416 7.7376 7.7335 7.7332 7.7306 17 17.492 22.712 28.156 28.474 28.979 29.043 30.042 31.939 31.610 13 Ireland/pound2 165.76 161.39 170.42 166.17 166.71 163.37 148.11 147.58 152.75 14 Italy/lira 1,198.27 1,241.28 1,232.17 1,364.45 1,412.38 1,491.07 1,550.43 1,591.35 1,536.14 15 Japan/yen 145.00 134.59 126.78 123.88 124.04 124.99 120.76 117.02 112.41 16 Malaysia/rinegit 2.7057 2.7503 2.5463 2.5227 2.5710 2.5985 2.6295 2.6051 2.5777 17 Netherlands/guilder 1.8215 1.8720 1.7587 1.7862 1.7788 1.8155 1.8473 1.8507 1.7942 18 New Zealand/dollar2 59.619 57.832 53.792 51.996 51.570 51.270 51.603 53.026 53.904 19 Norway /krone 6.2541 6.4912 6.2142 6.4714 6.6804 6.8721 6.9779 6.9989 6.7399 20 Portugal/escudo 142.70 144.77 135.07 141.71 142.05 145.36 149.89 152.17 148.25 71 Singapore/dollar 1.8134 1.7283 1.6294 1.6338 1.6397 1.6527 1.6463 1.6446 1.6228 77 South Africa/rand 2.5885 2.7633 2.8524 2.9959 3.0140 3.0713 3.1313 3.1790 3.1718 7.3 South Korea/won 710.64 736.73 784.58 787.09 791.75 794.87 799.25 796.42 798.61 74 Spain/peseta 101.96 104.01 102.38 113.83 112.95 114.62 117.51 117.71 115.64 75 Sri Lanka/rupee 40.078 41.200 44.013 44.404 45.046 46.307 46.351 47.069 47.712 76 Sweden/krona 5.9231 6.0521 5.8258 6.2528 6.8903 7.2536 7.5566 7.7362 7.4500 77 Switzerland/franc 1.3901 1.4356 1.4064 1.4291 1.4219 1.4774 1.5178 1.5206 1.4599 78 Taiwan/dollar 26.918 26.759 25.160 25.405 25.452 25.452 25.837 26.026 25.987 79 Thailand/baht 25.609 25.528 25.411 25.462 25.488 25.523 25.508 25.425 25.251 30 United Kingdom/pound2 178.41 176.74 176.63 152.68 155.10 153.25 143.95 146.17 154.47 MEMO 31 United States/dollar3 89.09 89.84 86.61 90.04 90.50 92.36 93.82 93.65 90.62 1. Averages of certified noon buying rates in New York for cable transfers. the 1972-76 average world trade of that country divided by the average world Data in this table also appear in the Board's G.5 (405) monthly statistical release. trade of all ten countries combined. Series revised as of August 1978 (see Federal For ordering address, see inside front cover. Reserve Bulletin, vol. 64, August 1978, p. 700). 2. Value in U.S. cents. 3. Index of weighted-average exchange value of U.S. dollar against the currencies of ten industrial countries. The weight for each of the ten countries is Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A69 Guide to Statistical Releases and Special Tables STATISTICAL RELEASES—List Published Semiannually, with Latest BULLETIN Reference Issue Page Anticipated schedule of release dates for periodic releases June 1993 A78 SPECIAL TABLES—Quarterly Data Published Irregularly, with Latest BULLETIN Reference Title and Date Issue Page Assets and liabilities of commercial banks March 31, 1992 August 1992 A70 June 30, 1992 November 1992 A70 September 30, 1992 February 1993 A70 December 31, 1992 May 1993 A70 Terms of lending at commercial banks May 1992 September 1992 A78 August 1992 November 1992 A76 November 1992 February 1993 A76 February 1993 May 1993 A76 Assets and liabilities of U.S. branches and agencies of foreign banks March 31, 1992 September 1992 A82 June 30, 1992 • November 1992 A80 September 30, 1992 February 1993 A80 December 31, 1992 May 1993 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 September 30, 1992 March 1993 A71 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 Turnover, 16 Assets and liabilities (See also Foreigners) Depository institutions Banks, by classes, i9-22 Reserve requirements, 9 Domestic finance companies, 35 Reserves and related items, 4, 5, 6, 13 Federal Reserve Banks, 11 Deposits (See also specific types) Financial institutions, 27 Banks, by classes, 4, 19-22, 23 Foreign banks, U.S. branches and agencies, 23 Federal Reserve Banks, 5,11 Automobiles Turnover, 16 Consumer installment credit, 38 Discount rates at Reserve Banks and at foreign central banks and Production, 47, 48 foreign countries (See Interest rates) Discounts and advances by Reserve Banks (See Loans) BANKERS acceptances, 10, 24, 25 Dividends, corporate, 34 Bankers balances, 19-22. (See also Foreigners) Bonds (See also U.S. government securities) EMPLOYMENT, 45 New issues, 34 Eurodollars, 25 Rates, 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 DEBITS to deposit accounts, 16 Foreign deposits in U.S. banks, 5, 11, 21, 22 Debt (See specific types of debt or securities) Foreign exchange rates, 68 Demand deposits Foreign trade, 54 Banks, by classes, 19-23 Foreigners Ownership by individuals, partnerships, and Claims on, 55, 57, 60, 61, 62, 64 corporations, 23 Liabilities to, 22, 54, 55, 57, 58, 63, 65, 66 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A71 GOLD Real estate loans—Continued Certificate account, 11 Financial institutions, 27 Stock, 5, 54 Terms, yields, and activity, 36 Government National Mortgage Association, 32, 36, 37 Type of holder and property mortgaged, 37 Gross domestic product, 51 Repurchase agreements, 7, 18, 21, 22, 23 Reserve requirements, 9 HOUSING, new and existing units, 49 Reserves Commercial banks, 19 INCOME, personal and national, 44, 51, 52 Depository institutions, 4, 5, 6, 13 Industrial production, 44, 47 Federal Reserve Banks, 11 Installment loans, 38 U.S. reserve assets, 54 Insurance companies, 29, 37 Residential mortgage loans, 36 Interest rates Retail credit and retail sales, 38, 39, 44 Bonds, 25 Consumer installment credit, 38 SAVING Federal Reserve Banks, 8 Flow of funds, 39,41,42, 43 Foreign central banks and foreign countries, 67 National income accounts, 51 Money and capital markets, 25 Savings and loan associations, 37, 38, 39. (See also SAIF-insured Mortgages, 36 institutions) Prime rate, 24 Savings Association Insurance Funds (SAIF) insured institutions, 27 International capital transactions of United States, 53-67 Savings banks, 27, 37, 38 International organizations, 57, 58, 60, 63, 64 Savings deposits (See Time and savings deposits) Inventories, 51 Securities (See also specific types) Investment companies, issues and assets, 34 Federal and federally sponsored credit agencies, 32 Investments (See also specific types) Foreign transactions, 65 Banks, by classes, 19, 20, 21, 22, 23, 27 New issues, 33 Commercial banks, 4, 17, 19-22 Prices, 26 Federal Reserve Banks, 11, 12 Special drawing rights, 5, 11, 53, 54 Financial institutions, 37 State and local governments Deposits, 21, 22 LABOR force, 45 Holdings of U.S. government securities, 29 Life insurance companies (See Insurance companies) New security issues, 33 Loans (See also specific types) Ownership of securities issued by, 21, 22 Banks, by classes, 19-22 Rates on securities, 25 Commercial banks, 4, 17, 19-22 Stock market, selected statistics, 26 Federal Reserve Banks, 5, 6, 8, 11, 12 Stocks (See also Securities) Financial institutions, 27, 37 New issues, 33 Insured or guaranteed by United States, 36, 37 Prices, 26 MANUFACTURING Student Loan Marketing Association, 32 Capacity utilization, 46 Production, 46, 48 T T A hr X if t r i e n c s e t i i p tu ts t , i o f n ed s, e r 4 a . l ( , S 2 e 8 e also Credit unions and Savings and Margin requirements, 26 loan associations) Member banks (See also Depository institutions) Time and savings deposits, 4, 14, 18, 19, 20, 21, 22, 23 Federal funds and repurchase agreements, 7 Trade, foreign, 54 Reserve requirements, 9 Treasury cash, Treasury currency, 5 Mining production, 48 Treasury deposits, 5, 11, 27 Mobile homes shipped, 49 Treasury operating balance, 27 Monetary and credit aggregates, 4, 13 Money and capital market rates, 25 UNEMPLOYMENT, 45 Money stock measures and components, 4, 14 U.S. government balances Mortgages (See Real estate loans) Commercial bank holdings, 19, 20, 21, 22 Mutual funds, 34 Treasury deposits at Reserve Banks, 5, 11, 27 Mutual savings banks (See Thrift institutions) U.S. government securities Bank holdings, 19-22, 23, 29 NATIONAL defense outlays, 28 Dealer transactions, positions, and financing, 31 National income, 51 Federal Reserve Bank holdings, 5, 11, 12, 29 Foreign and international holdings and OPEN market transactions, 10 transactions, 11, 29, 66 Open market transactions, 10 PERSONAL income, 52 Outstanding, by type and holder, 27, 29 Prices Rates, 24 Consumer and producer, 44, 50 U.S. international transactions, 53-67 Stock market, 26 Utilities, production, 48 Prime rate, 24 Producer prices, 44, 50 VETERANS Administration, 36, 37 Production, 44,47 Profits, corporate, 34 WEEKLY reporting banks, 21-23 Wholesale (producer) prices, 44, 50 REAL estate loans Banks, by classes, 17, 21, 22, 37 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 LARRY J. PROMISEL, Senior Associate Director DONALD J. WINN, Assistant to the Board THEODORE E. ALLISON, Assistant to the Board for Federal CHARLES J. SIEGMAN, Senior Associate Director Reserve System Affairs DALE W. HENDERSON, Associate Director LYNN S. FOX, Special Assistant to the Board DAVID H. HOWARD, Senior Adviser WINTHROP P. HAMBLEY, Special Assistant to the Board DONALD B. ADAMS, Assistant Director BOB STAHLY MOORE, Special Assistant to the Board PETER HOOPER III, Assistant Director DIANE E. WERNEKE, Special Assistant to the Board KAREN H. JOHNSON, Assistant Director RALPH W. SMITH, JR., Assistant Director LEGAL DIVISION DIVISION OF RESEARCH AND STATISTICS J. VIRGIL MATTINGLY, JR., General Counsel SCOTT G. ALVAREZ, Associate General Counsel MICHAEL J. PRELL, Director RICHARD M. ASHTON, Associate General Counsel EDWARD C. ETTIN, Deputy Director OLIVER IRELAND, Associate General Counsel WILLIAM R. JONES, Associate Director KATHLEEN M. O'DAY, Associate General Counsel THOMAS D. SIMPSON, Associate Director MARYELLEN A. BROWN, Assistant to the General Counsel LAWRENCE SLIFMAN, Associate Director DAVID J. STOCKTON, Associate Director OFFICE OF THE SECRETARY MARTHA BETHEA, Deputy Associate Director PETER A. TINSLEY, Deputy Associate Director WILLIAM W. WILES, Secretary 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 DIVISION OF BANKING JOHN J. MINGO, Adviser LEVON H. GARABEDIAN, Assistant Director SUPERVISION AND REGULATION (Administration) RICHARD SPILLENKOTHEN, Director STEPHEN C. SCHEMERING, Deputy Director DIVISION OF MONETARY AFFAIRS DON E. KLINE, Associate Director 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, Associate Director ROGER T. COLE, Deputy Associate Director RICHARD D. PORTER, Deputy Associate Director JAMES I. GARNER, Deputy Associate Director DEBORAH DANKER, Assistant Director HOWARD A. AMER, Assistant Director NORMAND R.V. BERNARD, Special Assistant to the Board GERALD A. EDWARDS, JR., Assistant Director JAMES D. GOETZINGER, Assistant Director DIVISION OF CONSUMER STEPHEN M. HOFFMAN, JR., 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

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 DONALD L. ROBINSON, Assistant Inspector General OFFICE OF THE CONTROLLER BARRY R. SNYDER, Assistant Inspector General GEORGE E. LIVINGSTON, Controller STEPHEN J. CLARK, Assistant Controller (Programs and Budgets) DARRELL R. PAULEY, Assistant Controller (Finance) DIVISION OF SUPPORT SERVICES ROBERT E. FRAZIER, Director GEORGE M. LOPEZ, Assistant Director DAVID L. WILLIAMS, Assistant Director DIVISION OF INFORMATION RESOURCES MANAGEMENT STEPHEN R. MALPHRUS, Director BRUCE M. BEARDSLEY, Deputy Director 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

74 Federal Reserve Bulletin • June 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 W. LANG, Associate Economist NORMAND R.V. BERNARD, Deputy Secretary DAVID E. LINDSEY, Associate Economist JOSEPH R. COYNE, Assistant Secretary LARRY J. PROMISEL, Associate Economist GARY P. GILLUM, Assistant Secretary ARTHUR J. ROLNICK, Associate Economist J. VIRGIL MATTINGLY, JR., General Counsel HARVEY ROSENBLUM, Associate Economist ERNEST T. PATRIKIS, Deputy General Counsel KARL A. SCHELD, Associate Economist MICHAEL J. PRELL, Economist CHARLES J. SIEGMAN, Associate Economist EDWIN M. TRUMAN, Economist THOMAS D. SIMPSON, Associate Economist RICHARD G. DAVIS, Associate Economist LAWRENCE SLIFMAN, 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 E. B. ROBINSON, JR., President JOHN B. MCCOY, Vice President MARSHALL N. CARTER, First District EUGENE A. MILLER, Seventh District CHARLES S. SANFORD, JR., Second District ANDREW B. CRAIG, III, Eighth District ANTHONY P. TERRACCIANO, Third District JOHN F. GRUNDHOFER, Ninth District JOHN B. MCCOY, Fourth District DAVID A. RISMILLER, Tenth District EDWARD E. CRUTCHFIELD, JR., Fifth District CHARLES R. HRDLICKA, 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 DENNY D. DUMLER, Denver, Colorado, Chairman JEAN POGGE, Chicago, Illinois, Vice Chairman BARRY A. ABBOTT, San Francisco, California BONNIE GUITON, Charlottesville, Virginia 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 RONALD HOMER, Boston, Massachusetts DOUGLAS D. BLANKE, St. Paul, Minnesota THOMAS L. HOUSTON, Dallas, Texas GENEVIEVE BROOKS, Bronx, New York HENRY JARAMILLO, Belen, New Mexico TOYE L. BROWN, Boston, Massachusetts EDMUND MIERZWINSKI, Washington, D.C. CATHY CLOUD, Washington, D.C. JOHN V. SKINNER, Irving, Texas MICHAEL D. EDWARDS, Yelm, Washington LOWELL N. SWANSON, Portland, Oregon MICHAEL FERRY, St. Louis, Missouri MICHAEL W. TIERNEY, Washington, D.C. NORMA L. FREIBERG, New Orleans, Louisiana GRACE W. WEINSTEIN, Englewood, New Jersey LORI GAY, Los Angeles, California JAMES L. WEST, Tijeras, New Mexico DONALD A. GLAS, Hutchinson, Minnesota ROBERT O. ZDENEK, Washington, D.C. THRIFT INSTITUTIONS ADVISORY COUNCIL DANIEL C. ARNOLD, Houston, Texas, President BEATRICE D'AGOSTINO, Somerville, New Jersey, Vice President WILLIAM A. COOPER, Minneapolis, Minnesota CHARLES JOHN KOCH, Cleveland, Ohio PAUL L. ECKERT, Davenport, Iowa ROBERT MCCARTER, New Bedford, Massachusetts GEORGE R. GLIGOREA, Sheridan, Wyoming NICHOLAS W. MITCHELL, JR., Winston-Salem, North Carolina THOMAS J. HUGHES, Merrifield, Virginia STEPHEN W. PROUGH, Irvine, California KERRY KILLINGER, Seattle, Washington THOMAS R. RICKETTS, Troy, Michigan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Federal Reserve Board Publications For ordering assistance, write PUBLICATIONS SERVICES, Federal Reserve Regulatory Service. Looseleaf; updated at MS-138, Board of Governors of the Federal Reserve System, least monthly. (Requests must be prepaid.) Washington, DC 20551 or telephone (202) 452-3244 or FAX Consumer and Community Affairs Handbook. $75.00 per (202) 728-5886. When a charge is indicated, payment should year. accompany request and be made payable to the Board of Monetary Policy and Reserve Requirements Handbook. Governors of the Federal Reserve System. Payment from for- $75.00 per year. eign residents should be drawn on a U.S. bank. Securities Credit Transactions Handbook. $75.00 per year. The Payment System Handbook. $75.00 per year. Federal Reserve Regulatory Service. 3 vols. (Contains all four Handbooks plus substantial additional material.) THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS. $200.00 per year. 1984. 120 pp. Rates for subscribers outside the United States are as follows ANNUAL REPORT. and include additional air mail costs: ANNUAL REPORT: BUDGET REVIEW, 1991-92. Federal Reserve Regulatory Service, $250.00 per year. FEDERAL RESERVE BULLETIN. Monthly. $25.00 per year or Each Handbook, $90.00 per year. $2.50 each in the United States, its possessions, Canada, THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A MULTIand Mexico. Elsewhere, $35.00 per year or $3.00 each. COUNTRY MODEL, May 1984. 590 pp. $14.50 each. ANNUAL STATISTICAL DIGEST: period covered, release date, WELCOME TO THE FEDERAL RESERVE. March 1989. 14 pp. number of pages, and price. 1981 October 1982 239 pp. $ 6.50 INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. 440 pp. $9.00 each. 1982 December 1983 266 pp. $ 7.50 1983 October 1984 264 pp. $11.50 FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. December 1986. 264 pp. $10.00 each. 1984 October 1985 254 pp. $12.50 1985 October 1986 231 pp. $15.00 FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALY- SIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each. 1986 November 1987 288 pp. $15.00 1987 October 1988 272 pp. $15.00 1988 November 1989 256 pp. $25.00 CONSUMER EDUCATION PAMPHLETS 1980-89 March 1991 712 pp. $25.00 Short pamphlets suitable for classroom use. Multiple copies are 1990 November 1991 185 pp. $25.00 available without charge. 1991 November 1992 215 pp. $25.00 Consumer Handbook on Adjustable Rate Mortgages Consumer Handbook to Credit Protection Laws SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES OF CHARTS. Weekly. $30.00 per year or $.70 each in the A Guide to Business Credit for Women, Minorities, and Small United States, its possessions, Canada, and Mexico. Else- Businesses ' where, $35.00 per year or $.80 each. How to File A Consumer Credit Complaint 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 A Consumer's Guide to Mortgage Lock-Ins ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— A Consumer's Guide to Mortgage Settlement Costs Regulation Z) Vol. I (Regular Transactions). 1969.100 pp. A Consumer's Guide to Mortgage Refinancings Vol. II (Irregular Transactions). 1969. 116 pp. Each vol- Home Mortgages: Understanding the Process and Your Right ume $2.25; 10 or more of same volume to one address, to Fair Lending $2.00 each. Making Deposits: When Will Your Money Be Available? Introduction to Flow of Funds. 1980. 68 pp. $1.50 each; 10 or When Your Home is on the Line: What You Should Know more to one address, $1.25 each. About Home Equity Lines of Credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A77 STAFF STUDIES: Summaries Only Printed in the 160. BANKING MARKETS AND THE USE OF FINANCIAL SER- Bulletin VICES BY SMALL AND MEDIUM-SIZED BUSINESSES, by Gregory E. Elliehausen and John D. Wolken. September Studies and papers on economic and financial subjects that are 1990. 35 pp. of general interest. Requests to obtain single copies of the full 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 Maiy 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 ECONOMIC RECOVERY TAX ACT: SOME SIMULATION REPRINTS OF SELECTED Bulletin ARTICLES RESULTS, by Flint Brayton and Peter B. Clark. December Some Bulletin articles are reprinted. The articles listed below 1985. 17 pp. are those for which reprints are available. Most of the articles 149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS IN reprinted do not exceed twelve pages. Limit of ten copies BANKING BEFORE AND AFTER ACQUISITION, by Stephen A. Rhoades. April 1986. 32 pp. Recent Developments in the Bankers Acceptance Market. 1/86. 150. STATISTICAL COST ACCOUNTING MODELS IN BANKING: The Use of Cash and Transaction Accounts by American A REEXAMINATION AND AN APPLICATION, by John T. Families. 2/86. Rose and John D. Wolken. May 1986. 13 pp. Financial Characteristics of High-Income Families. 3/86. 151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT PRICING Prices, Profit Margins, and Exchange Rates. 6/86. FROM 1983 THROUGH 1985, by Patrick I. Mahoney, Alice Agricultural Banks under Stress. 7/86. P. White, Paul F. O'Brien, and Mary M. McLaughlin. Foreign Lending by Banks: A Guide to International and U.S. January 1987. 30 pp. Statistics. 10/86. 152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A Recent Developments in Corporate Finance. 11/86. REVIEW OF THE LITERATURE, by Mark J. Warshawsky. Measuring the Foreign-Exchange Value of the Dollar. 6/87. April 1987. 18 pp. Changes in Consumer Installment Debt: Evidence from the 153. STOCK MARKET VOLATILITY, by Carolyn D. Davis and 1983 and 1986 Surveys of Consumer Finances. 10/87. Alice P. White. September 1987. 14 pp. Home Equity Lines of Credit. 6/88. 154. THE EFFECTS ON CONSUMERS AND CREDITORS OF Mutual Recognition: Integration of the Financial Sector in the PROPOSED CEILINGS ON CREDIT CARD INTEREST RATES, European Community. 9/89. by Glenn B. Canner and James T. Fergus. October 1987. The Activities of Japanese Banks in the United Kingdom and in 26 pp. the United States, 1980-88. 2/90. 155. THE FUNDING OF PRIVATE PENSION PLANS, by Mark J. Industrial Production: 1989 Developments and Historical Warshawsky. November 1987. 25 pp. Revision. 4/90. 156. INTERNATIONAL TRENDS FOR U.S. BANKS AND BANKING Recent Developments in Industrial Capacity and Utilization. MARKETS, by James V. Houpt. May 1988. 47 pp. 6/90. 157. M2 PER UNIT OF POTENTIAL GNP AS AN ANCHOR FOR Developments Affecting the Profitability of Commercial Banks. THE PRICE LEVEL, by Jeffrey J. Hallman, Richard D. 7/90. Porter, and David H. Small. April 1989. 28 pp. Recent Developments in Corporate Finance. 8/90. 158. THE ADEQUACY AND CONSISTENCY OF MARGIN REQUIRE- U.S. Exchange Rate Policy: Bretton Woods to Present. 11/90. MENTS IN THE MARKETS FOR STOCKS AND DERIVATIVE The Transmission Channels of Monetary Policy: How Have PRODUCTS, by Mark J. Warshawsky with the assistance of They Changed? 12/90. Dietrich Earnhart. September 1989. 23 pp. Changes in Family Finances from 1983 to 1989: Evidence from 159. NEW DATA ON THE PERFORMANCE OF NONBANK SUBSID- the Survey of Consumer Finances. 1/92. IARIES OF BANK HOLDING COMPANIES, by Nellie Liang U.S. International Transactions in 1991. 5/92. and Donald Savage. February 1990. 12 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 ANTICIPATED SCHEDULE OF RELEASE DATES FOR PERIODIC RELEASES—BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM1 (PAYMENT MUST ACCOMPANY REQUESTS) Annual Approximate Date of period to which data Weekly Releases rate release days refer • Aggregate Reserves of Depository Institutions and $15.00 Thursday Week ended previous the Monetary Base. H.3 (502) [1.20] Wednesday • Actions of the Board: Applications and Reports $35.00 Friday Week ended previous Saturday Received. H.2 (501) • Assets and Liabilities of Insured Domestically $15.00 Monday Wednesday, 3 weeks earlier Chartered and Foreign Related Banking Institutions. H.8 (510) [1.25] • Factors Affecting Reserves of Depository $15.00 Thursday Week ended previous Institutions and Condition Statement of Federal Wednesday Reserve Banks. H.4.1 (503) [1.11] • Foreign Exchange Rates. H. 10 (512) [3.28] $15.00 Monday Week ended previous Friday • Money Stock, Liquid Assets, and Debt Measures. $35.00 Thursday Week ended Monday of H.6 (508) [1.21] previous week • Selected Borrowings in Immediately Available $15.00 Wednesday Week ended Thursday of Funds of Large Commercial Banks. H.5 (507) previous week [1.13] • Selected Interest Rates. H.15 (519) [1.35] $15.00 Monday Week ended previous Saturday • Weekly Consolidated Condition Report of Large $15.00 Friday Wednesday, 1 week earlier Commercial Banks, and Domestic Subsidiaries. H.4.2 (504) [1.26, 1.30] Monthly Releases • Consumer Installment Credit. G.19 (421) [1.55, $ 5.00 5th working day of 2nd month previous 1.56] month • Debits and Deposit Turnover at Commercial Banks. $5.00 12th of month Previous month G.6 (406) [1.22] • Finance Companies. G.20 (422) [1.51, 1.52] $ 5.00 5th working day of 2nd month previous month • Foreign Exchange Rates. G.5 (405) [3.28] $5.00 1st of month Previous month • Industrial Production and Capacity Utilization. G.17 Previous month $15.00 Midmonth (419) [2.12, 2.13] • Loans and Securities at all Commercial Banks. G.7 Previous month $ 5.00 3rd week of month (407) [1.23] • Major Nondeposit Funds of Commercial Banks. Previous month $ 5.00 3rd week of month G.10 (411) [1.24] • Research Library—Recent Acquisitions. G. 15 (417) Free of 1st of month Previous month charge • Selected Interest Rates. G.13 (415) [1.35] $ 5.00 1st Tuesday of Previous month month 1. Release dates are those anticipated or usually met. However, please note that for some releases there is normally a certain variability because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later than anticipated. The respective Bulletin tables that report the data are designated in brackets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

A80 Maps of the Federal Reserve System 1 9 BOSTON • MINNEAPOLIS® • NEW YORK 12 CHICAGO • [PHILADELPHIA CLEVELAND I SAN FRANCISCO 10 a KANSAS CITYB S? LOUIS RJCSOND 8 5 ATLANTA 11 DALLAS LEGEND Both pages Facing page • Federal Reserve Bank city • Federal Reserve Branch city • Board of Governors of the Federal — Branch boundary Reserve System, Washington, D.C. NOTE The Federal Reserve officially identifies Districts Commonwealth of Puerto Rico and the U.S. Virgin by number and Reserve Bank city (shown on both Islands; the San Francisco Bank serves American pages) and by letter (shown on the facing page). Samoa, Guam, and the Commonwealth of the In the 12th District, the Seattle Branch serves Northern Mariana Islands. The Board of Governors Alaska, and the San Francisco Bank serves Hawaii. revised the branch boundaries of the System most The System serves commonwealths and terri- recently in December 1991. tories as follows: the New York Bank serves ih* Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A81 1-A 2-B 3-C 4-D 5_E Baltimore^ Pittsburgh Charlotte NH * ' 7 • Cincinnati MAB Buffalo • ^ KY CT vc NJ NY BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 6-F 7-G 8-H T• N— Na — sh ville Birmingham > WI "I MS // OOAASS kk IA Detroit • Louisville IL • LA • '' JJaacckkssoonnvviillllee IN Memphis New Orleans „ Littl? ) MS J Rock Miami ATLANTA # CHICAGO ST. LOUIS 9-1 I ND • Helena 1 MN ^MSBMMM^^M Ml 1 SD ifttiif•ci' -iWii' MINNEAPOLIS 10-J 12-L Omaha • I MO ALASKA I Denver I KS • * Seattle / /ID Portland Oklahoma City OR C KANSAS CITY NV I U-K ^1 UT I TX • A / Salt Lake City NM LA EL Paso 7 JN-R V AZ ~ ^— YHoust in • Los Angeles • i • San Antonio C^ HAWAII DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A82 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* 02106 Jerome H. Grossman Richard F. Syron Warren B. Rudman Cathy E. Minehan NEW YORK* 10045 Ellen V. Futter E. Gerald Corrigan Maurice R. Greenberg James H. Oltman Buffalo 14240 Joseph J. Castiglia 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 G. Watts Humphrey, Jr. 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 Rebecca Hahn Windsor Ronald B. Duncan1 Charlotte 28230 Anne M. Allen Walter A. Varvel1 Culpeper Communications John G. Stoides1 and Records Center 22701 ATLANTA 30303 Edwin A. Huston Robert P. Forrestal Leo Benatar Jack Guynn Donald E. Nelson1 Birmingham 35283 Donald E. Boomershine Fred R. Herr1 Jacksonville 32231 Joan D. Ruffier James D. Hawkins1 Miami 33152 R. Kirk Landon 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 Weakle' James R. Bowen Little Rock 72203 Robert D. Nabholz, Jr. Karl W. Ashman Louisville 40232 John A. Williams Howard Wells Memphis 38101 Seymour B. Johnson John P. Baumgartner MINNEAPOLIS 55480 Delbert W. Johnson Gary H. Stern Gerald A. Rauenhorst Colleen K. Strand Helena 59601 James E. Jenks John D.Johnson KANSAS CITY 64198 Burton A. Dole, Jr. Thomas M. Hoenig Herman Cain Henry R. Czerwinski Denver 80217 Barbara B. Grogan Kent M. Scott Oklahoma City 73125 Ernest L. Holloway David J. France Omaha 68102 Sheila Griffin Harold L. Shewmaker DALLAS 75201 Leo E. Linbeck, Jr. Robert D. McTeer, Jr. Cece Smith Tony J. Salvaggio El Paso 79999 W. Thomas Beard, III Sammie C. Clay Houston 77252 Judy Ley Allen Robert Smith, III1 San Antonio 78295 Erich Wendl 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 E. Ronald Liggett1 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

Publications of Interest FEDERAL RESERVE CONSUMER CREDIT PUBLICATIONS The Federal Reserve Board publishes a series of Three booklets on the mortgage process are also pamphlets covering individual credit laws and topics, available: A Consumer's Guide to Mortgage Lock-Ins, as pictured below. The series includes such subjects A Consumer's Guide to Mortgage Refinancings, and as how the Equal Credit Opportunity Act protects A Consumer's Guide to Mortgage Settlement Costs. women against discrimination in their credit dealings, These booklets were prepared in conjunction with the how to use a credit card, and how to resolve a billing Federal Home Loan Bank Board and in consultation error. with other federal agencies and trade and consumer The Board also publishes the Consumer Handbook groups. to Credit Protection Laws, a complete guide to con- Copies of consumer publications are available free sumer credit protections. This forty-four-page booklet of charge from Publications Services, mail stop 138, explains how to shop and obtain credit, how to main- Board of Governors of the Federal Reserve System, tain a good credit rating, and how to dispute unfair Washington, DC 20551. Multiple copies for classcredit transactions. room use are also available free of charge. A Consumer's Guide to Mortgage Lock-Ins Consumer Handbook to Credit Protection L LAMPS | Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Publications of Interest FEDERAL RESERVE REGULATORY SERVICE To promote public understanding of its regulatory of marginable OTC stocks and its list of foreign functions, the Board publishes the Federal Reserve margin stocks. Regulatory Service, a three-volume looseleaf service The Consumer and Community Affairs Handbook containing all Board regulations as well as related contains Regulations B, C, E, M, Z, AA, and BB, and statutes, interpretations, policy statements, rulings, associated materials. and staff opinions. For those with a more specialized The Payment System Handbook deals with expeinterest in the Board's regulations, parts of this ser- dited funds availability, check collection, wire transvice are published separately as handbooks pertaining fers, and risk-reduction policy. It includes Regulation to monetary policy, securities credit, consumer affairs, CC, Regulation J, the Expedited Funds Availability and the payment system. Act and related statutes, the official Board commen- These publications are designed to help those who tary on Regulation CC, and policy statements on risk must frequently refer to the Board's regulatory mate- reduction in the payment system. rials. They are updated monthly, and each contains For domestic subscribers, the annual rate is $200 citation indexes and a subject index. for the Federal Reserve Regulatory Service and $75 The Monetary Policy and Reserve Requirements for each Handbook. For subscribers outside the Handbook contains Regulations A, D, and Q, plus United States, the price including additional air mail related materials. costs is $250 for the Service and $90 for each Hand- The Securities Credit Transactions Handbook con- book. All subscription requests must be accompanied tains Regulations G, T, U, and X, dealing with exten- by a check or money order payable to the Board of sions of credit for the purchase of securities, together Governors of the Federal Reserve System. Orders with related statutes, Board interpretations, rulings, should be addressed to Publications Services, mail and staff opinions. Also included are the Board's list stop 138, Board of Governors of the Federal Reserve System, Washington, DC 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis